Cover Page
Cover Page - shares | 6 Months Ended | |
Jul. 31, 2020 | Aug. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-38464 | |
Entity Registrant Name | Smartsheet Inc. | |
Entity Incorporation, State or Country Code | WA | |
Entity Tax Identification Number | 20-2954357 | |
Entity Address, Address Line One | 10500 NE 8th Street, Suite 1300 | |
Entity Address, City or Town | Bellevue, | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98004 | |
City Area Code | (844) | |
Local Phone Number | 324-2360 | |
Title of 12(b) Security | Class A common stock, no par value per share | |
Trading Symbol | SMAR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock Shares Outstanding (in shares) | 120,609,808 | |
Document Fiscal Year Focus | 2021 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001366561 | |
Current Fiscal Year End Date | --01-31 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Revenue | ||||
Revenues | $ 91,222 | $ 64,644 | $ 176,709 | $ 120,838 |
Cost of revenue | ||||
Total cost of revenue | 19,018 | 12,665 | 37,459 | 23,150 |
Gross profit | 72,204 | 51,979 | 139,250 | 97,688 |
Operating expenses | ||||
Research and development | 28,089 | 22,210 | 54,080 | 42,448 |
Sales and marketing | 53,779 | 39,260 | 108,562 | 74,673 |
General and administrative | 17,046 | 11,457 | 32,142 | 22,397 |
Total operating expenses | 98,914 | 72,927 | 194,784 | 139,518 |
Loss from operations | (26,710) | (20,948) | (55,534) | (41,830) |
Interest income | 92 | 2,114 | 1,419 | 3,263 |
Other income (expense), net | 134 | (319) | (80) | (431) |
Loss before income tax provision (benefit) | (26,484) | (19,153) | (54,195) | (38,998) |
Income tax provision (benefit) | 75 | (39) | 148 | (74) |
Net loss and comprehensive loss | $ (26,559) | $ (19,114) | $ (54,343) | $ (38,924) |
Net loss per share attributable to common shareholders, basic and diluted (in dollars per share) | $ (0.22) | $ (0.17) | $ (0.46) | $ (0.36) |
Weighted-average shares outstanding used to compute net loss per share attributable to common shareholders, basic and diluted (in shares) | 119,921 | 111,557 | 119,400 | 108,626 |
Subscription | ||||
Revenue | ||||
Revenues | $ 83,622 | $ 58,315 | $ 160,785 | $ 108,636 |
Cost of revenue | ||||
Total cost of revenue | 12,696 | 7,982 | 24,477 | 14,183 |
Professional services | ||||
Revenue | ||||
Revenues | 7,600 | 6,329 | 15,924 | 12,202 |
Cost of revenue | ||||
Total cost of revenue | $ 6,322 | $ 4,683 | $ 12,982 | $ 8,967 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 31, 2020 | Jan. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 545,975 | $ 515,924 |
Short-term investments | 0 | 50,532 |
Accounts receivable, net of allowances of $4,114 and $2,989, respectively | 54,663 | 56,863 |
Prepaid expenses and other current assets | 9,969 | 7,643 |
Total current assets | 610,607 | 630,962 |
Restricted cash | 659 | 865 |
Deferred commissions | 51,736 | 48,255 |
Property and equipment, net | 27,220 | 26,981 |
Operating lease right-of-use assets | 65,046 | 57,590 |
Intangible assets, net | 13,456 | 15,155 |
Goodwill | 16,497 | 16,497 |
Other long-term assets | 3,662 | 1,409 |
Total assets | 788,883 | 797,714 |
Current liabilities | ||
Accounts payable | 1,524 | 7,720 |
Accrued compensation and related benefits | 24,654 | 39,635 |
Other accrued liabilities | 11,106 | 12,428 |
Operating lease liabilities, current | 14,116 | 13,020 |
Finance lease liabilities, current | 1,916 | 2,465 |
Deferred revenue | 168,566 | 157,972 |
Total current liabilities | 221,882 | 233,240 |
Operating lease liabilities, non-current | 54,982 | 47,913 |
Finance lease liabilities, non-current | 866 | 1,664 |
Deferred revenue, non-current | 692 | 837 |
Other long-term liabilities | 4,736 | 0 |
Total liabilities | 283,158 | 283,654 |
Commitments and contingencies (Notes 11, 12) | ||
Shareholders’ equity | ||
Preferred stock, no par value; 10,000,000 shares authorized, no shares issued or outstanding as of July 31, 2020 and January 31, 2020 | 0 | 0 |
Additional paid-in capital | 816,526 | 770,518 |
Accumulated deficit | (310,801) | (256,458) |
Total shareholders’ equity | 505,725 | 514,060 |
Total liabilities and shareholders’ equity | 788,883 | 797,714 |
Common Class A | ||
Shareholders’ equity | ||
Common stock | 0 | 0 |
Common Class B | ||
Shareholders’ equity | ||
Common stock | $ 0 | $ 0 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jul. 31, 2020 | Jan. 31, 2020 |
Current assets | ||
Accounts receivable, allowances | $ 4,114 | $ 2,989 |
Shareholders’ equity | ||
Preferred stock authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common Class A | ||
Shareholders’ equity | ||
Common stock authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock issued (in shares) | 120,286,340 | 118,194,159 |
Common stock outstanding (in shares) | 120,286,340 | 118,194,159 |
Common Class B | ||
Shareholders’ equity | ||
Common stock authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock issued (in shares) | 0 | 0 |
Common stock outstanding (in shares) | 0 | 0 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Change in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock (Class A) | Additional Paid-in Capital | Accumulated Deficit |
Beginning balance, common stock (in shares) at Jan. 31, 2019 | 104,971,443 | |||
Beginning balance at Jan. 31, 2019 | $ 166,992 | $ 0 | $ 327,510 | $ (160,518) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock under employee stock plans (in shares) | 2,351,189 | |||
Issuance of common stock under employee stock plans | 14,102 | 14,102 | ||
Issuance of common stock in connection with initial public offering, net of underwriting discounts, commissions, and issuance costs (in shares) | 9,025,000 | |||
Issuance of common stock in connection with initial public offering, net of underwriting discounts, commissions, and issuance costs | 378,970 | 378,970 | ||
Share-based compensation expense | 15,801 | 15,801 | ||
Comprehensive loss | (38,924) | (38,924) | ||
Ending balance, common stock (in shares) at Jul. 31, 2019 | 116,347,632 | |||
Ending balance at Jul. 31, 2019 | 536,941 | $ 0 | 736,383 | (199,442) |
Beginning balance, common stock (in shares) at Apr. 30, 2019 | 106,378,403 | |||
Beginning balance at Apr. 30, 2019 | 162,795 | $ 0 | 343,122 | (180,327) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock under employee stock plans (in shares) | 944,229 | |||
Issuance of common stock under employee stock plans | 4,943 | 4,943 | ||
Issuance of common stock in connection with initial public offering, net of underwriting discounts, commissions, and issuance costs (in shares) | 9,025,000 | |||
Issuance of common stock in connection with initial public offering, net of underwriting discounts, commissions, and issuance costs | 378,970 | 378,970 | ||
Share-based compensation expense | 9,348 | 9,348 | ||
Comprehensive loss | (19,115) | (19,115) | ||
Ending balance, common stock (in shares) at Jul. 31, 2019 | 116,347,632 | |||
Ending balance at Jul. 31, 2019 | 536,941 | $ 0 | 736,383 | (199,442) |
Beginning balance, common stock (in shares) at Jan. 31, 2020 | 118,194,159 | |||
Beginning balance at Jan. 31, 2020 | 514,060 | $ 0 | 770,518 | (256,458) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock under employee stock plans (in shares) | 2,092,181 | |||
Issuance of common stock under employee stock plans | 14,082 | 14,082 | ||
Taxes paid related to net share settlement of equity awards | 1,470 | 1,470 | ||
Share-based compensation expense | 33,396 | 33,396 | ||
Comprehensive loss | (54,343) | (54,343) | ||
Ending balance, common stock (in shares) at Jul. 31, 2020 | 120,286,340 | |||
Ending balance at Jul. 31, 2020 | 505,725 | $ 0 | 816,526 | (310,801) |
Beginning balance, common stock (in shares) at Apr. 30, 2020 | 119,464,110 | |||
Beginning balance at Apr. 30, 2020 | 510,363 | $ 0 | 794,605 | (284,242) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock under employee stock plans (in shares) | 822,230 | |||
Issuance of common stock under employee stock plans | 3,782 | 3,782 | ||
Taxes paid related to net share settlement of equity awards | (501) | (501) | ||
Share-based compensation expense | 18,640 | 18,640 | ||
Comprehensive loss | (26,559) | (26,559) | ||
Ending balance, common stock (in shares) at Jul. 31, 2020 | 120,286,340 | |||
Ending balance at Jul. 31, 2020 | $ 505,725 | $ 0 | $ 816,526 | $ (310,801) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Cash flows from operating activities | ||
Net loss | $ (54,343) | $ (38,924) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Share-based compensation expense | 32,468 | 15,383 |
Depreciation and amortization of property and equipment | 5,926 | 5,022 |
Amortization of deferred commission costs | 14,076 | 8,423 |
Unrealized foreign currency (gain) loss | (9) | 286 |
Amortization of intangible assets | 1,699 | 1,060 |
Non-cash operating lease costs | 5,613 | 3,668 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 2,301 | (9,310) |
Prepaid expenses and other current assets | (2,273) | (6,324) |
Other long-term assets | (2,041) | (198) |
Accounts payable | (6,127) | (2,099) |
Other accrued liabilities | (567) | 3,970 |
Accrued compensation and related benefits | (14,912) | (701) |
Deferred commissions | (17,557) | (15,024) |
Other long-term liabilities | 4,736 | (1,003) |
Deferred revenue | 10,448 | 26,704 |
Operating lease liabilities | (5,041) | (2,810) |
Net cash used in operating activities | (25,603) | (11,877) |
Cash flows from investing activities | ||
Purchases of short-term investments | 0 | (50,000) |
Proceeds from early termination of short-term investments | 50,532 | 0 |
Purchases of property and equipment | (1,989) | (3,085) |
Capitalized internal-use software development costs | (3,711) | (3,397) |
Payments for business acquisitions, net of cash acquired | (956) | (26,839) |
Net cash provided by (used in) investing activities | 43,876 | (83,321) |
Cash flows from financing activities | ||
Proceeds from follow-on offering of common stock, net of underwriters' discounts and commissions | 0 | 379,828 |
Payments on principal of finance leases | (1,347) | (2,042) |
Payments of deferred offerings costs | (59) | (706) |
Proceeds from exercise of stock options | 7,465 | 9,738 |
Shares withheld related to net share settlement of restricted stock units | (1,470) | 0 |
Proceeds from Employee Stock Purchase Plan | 7,049 | 4,991 |
Net cash provided by financing activities | 11,638 | 391,809 |
Effects of changes in foreign currency exchange rates on cash, cash equivalents, and restricted cash | 45 | (216) |
Net increase in cash, cash equivalents, and restricted cash | 29,956 | 296,395 |
Beginning of period | 516,789 | 215,705 |
End of period | 546,745 | 512,100 |
Supplemental disclosures | ||
Cash paid for interest | 84 | 118 |
Cash paid for income taxes | 71 | 121 |
Purchases of fixed assets under finance leases | 0 | 1,682 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 13,069 | 0 |
Accrued purchases of property and equipment (including internal-use software) | 819 | 906 |
Deferred offering costs, accrued but not yet paid | 0 | 164 |
Share-based compensation expense capitalized in internal-use software development costs | $ 897 | $ 421 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 6 Months Ended |
Jul. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview and Basis of Presentation | Overview and Basis of Presentation Description of business Smartsheet Inc. (the “Company,” “we,” “our”) was incorporated in the State of Washington in 2005, and is headquartered in Bellevue, Washington. The Company is a leading cloud-based platform for work execution, enabling teams and organizations to plan, capture, manage, automate, and report on work at scale. Customers access their accounts online via a web-based interface or a mobile application. Some customers also purchase the Company’s professional services, which primarily consist of consulting and training services. Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated balance sheet as of January 31, 2020 was derived from the audited consolidated financial statements as of that date but does not include all of the information and notes required by GAAP for complete financial statements. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements in our Annual Report on Form 10-K for the year ended January 31, 2020, filed with the SEC on March 31, 2020. The condensed consolidated financial statements include the results of Smartsheet Inc. and its wholly owned subsidiaries, which are located in the United States, the United Kingdom, and Australia. All intercompany balances and transactions have been eliminated upon consolidation. In the opinion of management, the information contained herein reflects all adjustments necessary for a fair presentation of our condensed consolidated financial statements. All such adjustments are of a normal, recurring nature. The results of operations for the three and six months ended July 31, 2020 are not necessarily indicative of results to be expected for the full year ending January 31, 2021, or for any other interim period, or for any future year. Use of estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. The Company bases its estimates on historical experience and on other assumptions that its management believes are reasonable under the circumstances. Actual results could differ from those estimates. The Company’s most significant estimates and judgments involve revenue recognition with respect to the allocation of transaction consideration for the Company’s offerings; determination of the amortization period for capitalized sales commission costs; capitalization of internal-use software development costs; valuation of assets and liabilities acquired as part of business combinations; and incremental borrowing rate estimates for operating leases, among others. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jul. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Segment information The Company operates as one operating segment. The Company’s chief operating decision maker is its Chief Executive Officer, who reviews financial information for purposes of making operating decisions, assessing financial performance, and allocating resources. Accounts receivable and allowance for doubtful accounts Accounts receivable are primarily comprised of trade receivables that are recorded at the invoice amount, net of an allowance for doubtful accounts. Subscription fees billed in advance of the related subscription term represent contract liabilities and are presented as accounts receivable and deferred revenues upon establishment of the unconditional right to invoice, typically upon signing of the non-cancelable service agreement. Our typical payment terms provide for customer payment within 30 days of the date of the contract. The allowance for doubtful accounts is based on the Company’s estimated expected credit losses derived upon assessment of various factors including historical trends on collectibility, composition of accounts receivable by aging, current market conditions, reasonable and supportable forecasts of future economic conditions, and other factors. As of July 31, 2020 , our allowance for doubtful accounts reflects increased collectibility concerns stemming from the macroeconomic conditions resulting from the COVID-19 pandemic and may increase in future periods as we ascertain further impacts to our customers and business. The estimated credit losses are recorded to the allowance for doubtful accounts in the condensed consolidated balance sheets, with an offsetting decrease in related deferred revenue and a reduction of revenue or charge to general and administrative expense in the condensed consolidated statements of operations and comprehensive loss. Restricted cash Restricted cash as of July 31, 2020 and January 31, 2020 was $0.8 million and $0.9 million, respectively, primarily related to security deposits for the Company’s Bellevue, Boston, London, and Edinburgh leases. Short-term restricted cash amounts are included in prepaid expenses and other current assets and long-term restricted cash amounts are included in restricted cash on the condensed consolidated balance sheets. Cash as reported on the condensed consolidated statements of cash flows includes the aggregate amounts of cash and cash equivalents and restricted cash as shown on the condensed consolidated balance sheets. Cash as reported on the condensed consolidated statements of cash flows consisted of the following (in thousands): July 31, 2020 2019 Cash and cash equivalents $ 545,975 $ 511,214 Restricted cash included in prepaid expenses and other current assets 111 — Restricted cash 659 886 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statement of cash flows $ 546,745 $ 512,100 Internal-use software development costs The Company capitalizes certain qualifying costs incurred during the application development stage in connection with the development of internal-use software. Costs related to preliminary project activities and post-implementation activities are expensed in research and development (“R&D”) as incurred. R&D expenses consist primarily of employee-related costs, hardware- and software-related costs, costs of outside services used to supplement our internal staff, and overhead allocations. Internal-use software costs of $2.2 million were capitalized in the three months ended July 31, 2020, all of which related to costs incurred during the application development stage of software development for the Company’s platform to which subscriptions are sold. Internal-use software costs of $2.2 million were capitalized in the three months ended July 31, 2019, of which $1.4 million related to costs incurred during the application development stage of software development for the Company’s platform to which subscriptions are sold. Internal-use software costs of $3.9 million were capitalized in the six months ended July 31, 2020, all of which related to the application development stage of software development for the Company’s platform to which subscriptions are sold. Internal-use software costs of $3.8 million were capitalized in the six months ended July 31, 2019, of which $2.4 million related to costs incurred during the application development stage of software development for the Company’s platform to which subscriptions are sold. Capitalized internal-use software costs are included within property and equipment, net on the condensed consolidated balance sheets, and are amortized over the estimated useful life of the software, which is typically three years. The related amortization expense is recognized in the condensed consolidated statements of operations and comprehensive loss within the function that receives the benefit of the developed software. Amortization expense of capitalized internal-use software costs totaled $0.9 million and $0.5 million for the three months ended July 31, 2020 and 2019, respectively, and $1.7 million and $0.9 million for the six months ended July 31, 2020 and 2019, respectively. The Company evaluates the useful lives of these assets and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Concentrations of risk and significant customers Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash, cash equivalents, and accounts receivable. The Company maintains its cash accounts with financial institutions where deposits, at times, exceed the Federal Deposit Insurance Corporation limits. No individual customer represented more than 10% of accounts receivable as of July 31, 2020 or January 31, 2020. No individual customer represented more than 10% of revenue for the three and six months ended July 31, 2020 or 2019. Recently adopted accounting pronouncements In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, and has amended the standard thereafter, which modifies the accounting methodology for most financial instruments. The guidance establishes a new “expected loss model” that requires entities to estimate current expected credit losses on financial instruments by using all practical and relevant information. Additionally, any expected credit losses are to be reflected as allowances rather than reductions in the amortized cost of available-for-sale debt securities. The Company adopted the standard effective February 1, 2020. The adoption did not have a material effect on our condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-15 Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing costs incurred to develop or obtain internal-use software. The Company adopted the standard effective February 1, 2020 on a prospective basis. During the three and six months ended July 31, 2020, a total of $0.9 million and $1.6 million of costs, respectively, related to cloud computing arrangements were capitalized and were included in other long-term assets on the condensed consolidated balance sheet as of July 31, 2020. Recent accounting pronouncements not yet adopted In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes , which simplifies certain aspects of accounting for income taxes. The guidance is effective for interim and annual reporting periods beginning after December 15, 2020, and early adoption is permitted. The Company does not expect adoption of this standard to have a material effect on the Company’s condensed consolidated financial statements. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jul. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers During the three months ended July 31, 2020 and 2019, the Company recognized $68.7 million and $45.3 million of subscription revenue, respectively, and $2.0 million and $1.9 million of professional services revenue, respectively, which were included in the deferred revenue balance as of April 30, 2020 and 2019, respectively. During the six months ended July 31, 2020 and 2019, the Company recognized $110.9 million and $68.5 million of subscription revenue, respectively, and $3.2 million and $1.9 million of professional services revenue, respectively, which were included in the deferred revenue balance as of January 31, 2020 and 2019, respectively. As of July 31, 2020 approximately $180.1 million of revenue, including amounts already invoiced and amounts contracted but not yet invoiced, was expected to be recognized from remaining performance obligations, of whic h $176.6 million related to subscription services a nd $3.4 million r elated to professional services. Approximate ly 96% o f revenue related to remaining performance obligations is expected to be recognized in the next 12 months. Deferred commissions were $51.7 million as of July 31, 2020 and $48.3 million as of January 31, 2020. Amortization expense for deferred commissions was $7.4 million and $4.6 million for the three months ended July 31, 2020 and 2019, respectively, and $14.1 million and $8.4 million for the six months ended July 31, 2020 and 2019, respectively. Deferred commissions are amortized over a period of three years and the amortization expense is recorded in sales and marketing on the Company’s condensed consolidated statements of operations and comprehensive loss. |
Deferred Commissions
Deferred Commissions | 6 Months Ended |
Jul. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Commissions | Revenue from Contracts with Customers During the three months ended July 31, 2020 and 2019, the Company recognized $68.7 million and $45.3 million of subscription revenue, respectively, and $2.0 million and $1.9 million of professional services revenue, respectively, which were included in the deferred revenue balance as of April 30, 2020 and 2019, respectively. During the six months ended July 31, 2020 and 2019, the Company recognized $110.9 million and $68.5 million of subscription revenue, respectively, and $3.2 million and $1.9 million of professional services revenue, respectively, which were included in the deferred revenue balance as of January 31, 2020 and 2019, respectively. As of July 31, 2020 approximately $180.1 million of revenue, including amounts already invoiced and amounts contracted but not yet invoiced, was expected to be recognized from remaining performance obligations, of whic h $176.6 million related to subscription services a nd $3.4 million r elated to professional services. Approximate ly 96% o f revenue related to remaining performance obligations is expected to be recognized in the next 12 months. Deferred commissions were $51.7 million as of July 31, 2020 and $48.3 million as of January 31, 2020. Amortization expense for deferred commissions was $7.4 million and $4.6 million for the three months ended July 31, 2020 and 2019, respectively, and $14.1 million and $8.4 million for the six months ended July 31, 2020 and 2019, respectively. Deferred commissions are amortized over a period of three years and the amortization expense is recorded in sales and marketing on the Company’s condensed consolidated statements of operations and comprehensive loss. |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jul. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share The following tables present calculations for basic and diluted net loss per share (in thousands, except share and per share data): Three Months Ended July 31, Six Months Ended July 31, 2020 2019 2020 2019 Numerator: Net loss $ (26,559) $ (19,114) $ (54,343) $ (38,924) Denominator: Weighted-average common shares outstanding 119,921 111,557 119,400 108,626 Net loss per share, basic and diluted $ (0.22) $ (0.17) $ (0.46) $ (0.36) The following outstanding shares of common stock equivalents (in thousands) as of the periods presented were excluded from the computation of diluted net loss per share attributable to common shareholders for the periods presented because the impact of including them would have been anti-dilutive: July 31, 2020 2019 Shares subject to outstanding common stock awards 13,103 13,348 Shares issuable pursuant to the 2018 Employee Stock Purchase Plan 145 116 Total potentially dilutive shares 13,248 13,464 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and liabilities recorded at fair value in the condensed consolidated financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The lowest level of significant input determines the placement of the fair value measurement within the following hierarchical levels: • Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2: Observable inputs, other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3: Unobservable inputs that are supported by little or no market activity. The following tables present information about the Company’s financial assets and liabilities that are measured at fair value and indicate the fair value hierarchy of the valuation inputs used (in thousands): July 31, 2020 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 518,263 $ — $ — $ 518,263 Total assets $ 518,263 $ — $ — $ 518,263 January 31, 2020 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 279,160 $ — $ — $ 279,160 Certificates of deposit — 50,585 — 50,585 Short-term investments: Certificates of deposit — 50,532 — 50,532 Total assets $ 279,160 $ 101,117 $ — $ 380,277 The carrying amounts of certain financial instruments, including cash held in banks, accounts receivable, and accounts payable, approximate fair value due to their short-term maturities and are excluded from the fair value tables above. It is the Company’s policy to recognize transfers of assets and liabilities between levels of the fair value hierarchy at the end of a reporting period. The Company does not transfer out of Level 3 and into Level 2 until observable inputs become available and reliable. |
Business Combinations
Business Combinations | 6 Months Ended |
Jul. 31, 2020 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations On May 1, 2019, we acquired 100% of the outstanding equity of Artefact Product Group, LLC (“Artefact Product Group” or “10,000ft”), a Washington limited liability company, pursuant to an Agreement and Plan of Merger (the “Merger Agreement”). The acquisition is complementary to our existing product capabilities and accelerates our time to market for a resource planning software solution. The aggregate consideration paid in exchange for all of the outstanding equity interests of Artefact Product Group was approximately $27.8 million in cash, after a working capital adjustment of $0.2 million. Of the cash paid at closing, a total of $2.8 million was held in a third-party escrow account to secure our indemnification rights under the Merger Agreement. The $2.8 million was released from escrow during the three months ended July 31, 2020. We accounted for the transaction as a business combination using the acquisition method of accounting. We allocated the purchase price to the tangible and identifiable intangible assets acquired and liabilities assumed based on their respective estimated fair values on the acquisition date. Excess purchase price consideration was recorded as goodwill, and is primarily attributable to the acquired assembled workforce and expected growth from the expansion of the acquired product offerings and customer base. The goodwill recognized upon acquisition is expected to be deductible for U.S. federal income tax purposes. We engaged a third-party valuation specialist to aid our analysis of the fair value of the acquired intangibles. All estimates, key assumptions, and forecasts were either provided by or reviewed by us. While we chose to utilize a third-party valuation specialist for assistance, the fair value analysis and related valuations reflect the conclusions of management and not those of any third party. 10,000ft’s results of operations have been included in the Company’s condensed consolidated results of operations since the acquisition date. The major classes of assets and liabilities to which the Company allocated the purchase price, net of the $0.2 million working capital adjustment, were as follows (in thousands): May 1, 2019 Cash $ 1,150 Current Assets 801 Intangible Assets 16,090 Goodwill 11,001 Current Liabilities (180) Deferred Revenue (1,030) Total $ 27,832 The estimated useful lives and fair values of the identifiable intangible assets at acquisition date were as follows (dollars in thousands): Fair Value Expected Useful Life Software Technology $ 8,000 5 years Customer Relationships 7,990 8 years Trade Name 100 32 months Total intangible assets $ 16,090 |
Goodwill and Net Intangible Ass
Goodwill and Net Intangible Assets | 6 Months Ended |
Jul. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Net Intangible Assets | Goodwill and Net Intangible Assets There were no changes in the carrying amount of goodwill or measurement period adjustments during the six months ended July 31, 2020. The following table presents the components of net intangible assets (in thousands): As of July 31, 2020 As of January 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired software technology $ 9,866 $ (3,436) $ 6,430 $ 9,866 $ (2,325) $ 7,541 Acquired customer relationships 8,350 (1,459) 6,891 8,350 (900) 7,450 Trade names 100 (47) 53 100 (28) 72 Patents 170 (101) 69 170 (91) 79 Domain name 13 — 13 13 — 13 Total $ 18,499 $ (5,043) $ 13,456 $ 18,499 $ (3,344) $ 15,155 The components of intangible assets acquired as of the periods presented were as follows (dollars in thousands): As of July 31, 2020 As of January 31, 2020 Net Carrying Amount Weighted Average Life (Years) Net Carrying Amount Weighted Average Life (Years) Acquired software technology $ 6,430 3.6 $ 7,541 4.0 Acquired customer relationships 6,891 6.6 7,450 7.1 Trade names 53 1.4 72 1.9 Total $ 13,374 5.1 $ 15,063 5.5 Amortization expense related to intangible assets was $0.8 million and $0.9 million for the three months ended July 31, 2020 and 2019, respectively, and $1.7 million and $1.1 million fo r the six months ended July 31, 2020 and 2019, respectively. As of July 31, 2020, estimated remaining amortization expense for the finite-lived intangible assets by fiscal year is as follows (in thousands): Remainder of Fiscal 2021 $ 1,659 Fiscal 2022 2,897 Fiscal 2023 2,608 Fiscal 2024 2,607 Fiscal 2025 1,406 Thereafter 2,266 Total $ 13,443 |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jul. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Company has issued incentive and non-qualifying stock options to employees and non-employee directors under the 2005 Stock Option/Restricted Stock Plan (the “2005 Plan”), the 2015 Equity Incentive Plan (the “2015 Plan”), and the 2018 Equity Incentive Plan (the “2018 Plan”). The Company has also issued restricted stock units (“RSUs”) to employees and non-employee directors pursuant to the 2015 Plan and the 2018 Plan. Employee stock options are granted with exercise prices at the fair value of the underlying common stock on the grant date, in general vest based on continuous employment over four years, and expire 10 years from the date of grant. Employee RSUs are measured based on the grant date fair value of the awards and in general vest based on continuous employment over four years. Stock options The following table includes a summary of the option activity during the six months ended July 31, 2020: Options Outstanding Weighted-Average Exercise Price Outstanding at January 31, 2020 9,076,671 $ 8.18 Granted 453,288 42.10 Exercised (1,271,126) 5.77 Forfeited or canceled (126,557) 10.98 Outstanding at July 31, 2020 8,132,276 10.40 Exercisable at July 31, 2020 5,026,994 6.19 Restricted stock units The following table includes a summary of the RSU activity during the six months ended July 31, 2020: Number of Shares Underlying Outstanding RSUs Weighted-Average Grant-Date Fair Value per RSU Outstanding at January 31, 2020 3,138,330 $ 39.32 Granted 2,663,368 39.96 Vested (613,006) 39.28 Forfeited or canceled (217,655) 39.98 Outstanding at July 31, 2020 4,971,037 39.64 2018 Employee Stock Purchase Plan In April 2018, we adopted our 2018 Employee Stock Purchase Plan (“ESPP”). The ESPP became effective on April 26, 2018, with the effective date of our initial public offering. Under our ESPP, eligible employees are able to acquire shares of our Class A common stock by accumulating funds through payroll deductions of up to 15% of their compensation, subject to plan limitations. Purchases are accomplished through participation in discrete offering periods. Each offering period is six months (commencing each March 25 and September 25) and consists of one six-month purchase period, unless otherwise determined by our board of directors or our compensation committee. The purchase price for shares of our common stock purchased under our ESPP is 85% of the lesser of the fair market value of our common stock on (i) the first trading day of the applicable offering period or (ii) the last trading day of the purchase period in the applicable offering period. Shares available for issuance The following table includes a summary of shares available for issuance under our 2018 Plan and our ESPP during the six months ended July 31, 2020: 2018 Plan 2018 ESPP Balance at January 31, 2020 10,921,562 2,438,717 Authorized 5,909,708 1,181,942 Granted (3,116,656) (208,049) Forfeited 344,212 — Balance at July 31, 2020 14,058,826 3,412,610 The number of shares available for issuance under the 2018 Plan and the ESPP will increase automatically on February 1 of the next 8 calendar years, pursuant to the terms of the 2018 Plan and the ESPP, respectively. As of July 31, 2020, $5.3 million has been withheld on behalf of employees for a future purchase under the ESPP and is recorded in accrued compensation and related benefits in the condensed consolidated balance sheet. Share-based compensation expense Share-based compensation expense included in the condensed consolidated statements of operations and comprehensive loss was as follows (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2020 2019 2020 2019 Cost of subscription revenue $ 1,113 $ 356 $ 2,008 $ 591 Cost of professional services revenue 566 298 999 515 Research and development 6,199 3,317 11,327 5,589 Sales and marketing 6,738 3,276 11,844 5,385 General and administrative 3,544 1,839 6,400 3,303 Total share-based compensation expense* $ 18,160 $ 9,086 $ 32,578 $ 15,383 *Includes amortization related to share-based compensation that was capitalized in internal-use software in previous periods. |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes for interim tax periods is generally determined using an estimate of the Company’s annual effective tax rate, excluding jurisdictions for which no tax benefit can be recognized due to valuation allowances, and adjusted for discrete tax items in the period. Each quarter the Company updates its estimate of the annual effective tax rate and makes a cumulative adjustment if the estimated annual tax rate has changed. The Company’s effective tax rate generally differs from the U.S. federal statutory tax rate primarily due to a valuation allowance related to the Company’s U.S. federal, state, and certain foreign deferred tax assets partially offset by the windfall from share-based compensation tax deductions. The Company recorded a provision for income taxes of $0.1 million for the three and six months ended July 31, 2020 primarily attributable to income taxes in foreign jurisdictions and state income taxes. The Company recorded a benefit for income taxes of less than $0.1 million for the three and six months ended July 31, 2019, respectively, primarily attributable to the windfall from share-based compensation tax deductions offset by income taxes in foreign jurisdictions and state income taxes. |
Leases
Leases | 6 Months Ended |
Jul. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases Leases The Company has operating leases primarily related to corporate offices and certain equipment, and finance leases primarily related to data center equipment. Our leases have remaining lease terms of less than 1 year to 9 years, some of which include options to extend the leases for up to 5 years. The components of lease expense recorded in the condensed consolidated statements of operations and comprehensive loss were as follows (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2020 2019 2020 2019 Operating lease cost $ 3,782 $ 2,634 $ 7,402 $ 5,365 Finance lease cost: Amortization of assets 1,041 1,025 2,117 1,997 Interest on lease liabilities 38 59 84 125 Short-term lease cost 337 142 727 269 Variable lease cost 687 432 1,250 835 Total lease costs $ 5,885 $ 4,292 $ 11,580 $ 8,591 Supplemental balance sheet information related to leases was as follows (in thousands): Financial Statement Line Item As of July 31, 2020 As of January 31, 2020 Assets: Operating lease assets Operating lease right-of-use assets $ 65,046 $ 57,590 Finance lease assets Property and equipment, net 1,821 3,939 Total leased assets $ 66,867 $ 61,529 Liabilities: Current Operating Operating lease liabilities, current $ 14,116 $ 13,020 Finance Finance lease liabilities, current 1,916 2,465 Non-current Operating Operating lease liabilities, non-current 54,982 47,913 Finance Finance lease liabilities, non-current 866 1,664 Total lease liabilities $ 71,880 $ 65,062 Other information related to leases was as follows (dollars in thousands): Six Months Ended July 31, 2020 2019 Supplemental cash flow information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases* $ 6,778 $ 4,461 Operating cash flows from finance leases 84 118 Financing cash flows from finance leases 1,347 2,042 Right-of-use assets obtained in exchange for lease obligations: Operating leases 13,069 — Finance leases — 1,682 Weighted-average remaining lease term (in years): Operating leases 6.0 6.3 Finance leases 1.5 1.9 Weighted-average discount rate: Operating leases 5.5 % 6.4 % Finance leases 4.6 % 5.3 % *Includes cash paid for lease liability accretion of $1.9 million and $1.6 million for the six months ended July 31, 2020 and 2019, respectively. As of July 31, 2020, remaining maturities of lease liabilities were as follows (in thousands): Operating Leases Finance Leases Remainder of fiscal 2021 $ 7,336 $ 1,171 Fiscal 2022 14,294 1,286 Fiscal 2023 13,351 426 Fiscal 2024 13,640 — Fiscal 2025 11,953 — Thereafter 20,379 — Total lease payments 80,953 2,883 Less: imputed interest (11,855) (101) Total $ 69,098 $ 2,782 As of July 31, 2020, we had signed leases for additional office space that had not yet commenced. Future non-cancelable lease payments associated with these agreements totaled $26.5 million, payable over lease terms of 8 years. |
Leases | Leases Leases The Company has operating leases primarily related to corporate offices and certain equipment, and finance leases primarily related to data center equipment. Our leases have remaining lease terms of less than 1 year to 9 years, some of which include options to extend the leases for up to 5 years. The components of lease expense recorded in the condensed consolidated statements of operations and comprehensive loss were as follows (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2020 2019 2020 2019 Operating lease cost $ 3,782 $ 2,634 $ 7,402 $ 5,365 Finance lease cost: Amortization of assets 1,041 1,025 2,117 1,997 Interest on lease liabilities 38 59 84 125 Short-term lease cost 337 142 727 269 Variable lease cost 687 432 1,250 835 Total lease costs $ 5,885 $ 4,292 $ 11,580 $ 8,591 Supplemental balance sheet information related to leases was as follows (in thousands): Financial Statement Line Item As of July 31, 2020 As of January 31, 2020 Assets: Operating lease assets Operating lease right-of-use assets $ 65,046 $ 57,590 Finance lease assets Property and equipment, net 1,821 3,939 Total leased assets $ 66,867 $ 61,529 Liabilities: Current Operating Operating lease liabilities, current $ 14,116 $ 13,020 Finance Finance lease liabilities, current 1,916 2,465 Non-current Operating Operating lease liabilities, non-current 54,982 47,913 Finance Finance lease liabilities, non-current 866 1,664 Total lease liabilities $ 71,880 $ 65,062 Other information related to leases was as follows (dollars in thousands): Six Months Ended July 31, 2020 2019 Supplemental cash flow information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases* $ 6,778 $ 4,461 Operating cash flows from finance leases 84 118 Financing cash flows from finance leases 1,347 2,042 Right-of-use assets obtained in exchange for lease obligations: Operating leases 13,069 — Finance leases — 1,682 Weighted-average remaining lease term (in years): Operating leases 6.0 6.3 Finance leases 1.5 1.9 Weighted-average discount rate: Operating leases 5.5 % 6.4 % Finance leases 4.6 % 5.3 % *Includes cash paid for lease liability accretion of $1.9 million and $1.6 million for the six months ended July 31, 2020 and 2019, respectively. As of July 31, 2020, remaining maturities of lease liabilities were as follows (in thousands): Operating Leases Finance Leases Remainder of fiscal 2021 $ 7,336 $ 1,171 Fiscal 2022 14,294 1,286 Fiscal 2023 13,351 426 Fiscal 2024 13,640 — Fiscal 2025 11,953 — Thereafter 20,379 — Total lease payments 80,953 2,883 Less: imputed interest (11,855) (101) Total $ 69,098 $ 2,782 As of July 31, 2020, we had signed leases for additional office space that had not yet commenced. Future non-cancelable lease payments associated with these agreements totaled $26.5 million, payable over lease terms of 8 years. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Commitments During the three months ended July 31, 2020, the Company entered into a four-year commitment with a cloud-based hosting service provider for $75.0 million. This commitment replaced our three-year commitment for $15.0 million disclosed in our audited consolidated financial statements as of and for the year ended January 31, 2020. As of July 31, 2020, the entire commitment amount remained unpaid, of which $7.5 million of upfront payments are to be paid in fiscal 2021, $16.3 million of upfront payments are to be paid in fiscal 2022, $18.8 million of upfront payments are to be paid in fiscal 2023, $21.3 million of upfront payments are to be paid in fiscal 2024, and $11.3 million of upfront payments are to be paid in fiscal 2025. Total payments may exceed upfront payment amounts based on on-demand usage. Legal matters |
Geographic Information
Geographic Information | 6 Months Ended |
Jul. 31, 2020 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information Revenue by geographic location is determined by the location of the Company’s customers. The following table sets forth revenue (in thousands) by geographic area: Three Months Ended July 31, Six Months Ended July 31, 2020 2019 2020 2019 United States $ 74,238 $ 50,884 $ 143,224 $ 95,039 EMEA 8,819 7,323 17,524 13,572 Asia Pacific 3,623 3,408 7,043 6,233 Americas other than the United States 4,542 3,029 8,918 5,994 Total $ 91,222 $ 64,644 $ 176,709 $ 120,838 No individual country other than the United States contributed more than 10% of total revenue during any of the periods presented. Property and equipment by geographic location is based on the location of the legal entity that owns the asset. As of July 31, 2020 and January 31, 2020, there was no significant property and equipment owned by the Company outside of the United States. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jul. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On August 23, 2020, the Company entered into an Agreement and Plan of Merger to acquire 100% of the outstanding equity of Brandfolder Inc. (“Brandfolder”). The total purchase consideration for the acquisition of Brandfolder is estimated to be approximately $150.0 million, net of customary purchase price adjustments. The purchase will consist of $124.0 million in cash and the remainder in Company common stock. The acquisition is expected to close during the Company’s fiscal quarter ending October 31, 2020, subject to customary closing conditions. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated balance sheet as of January 31, 2020 was derived from the audited consolidated financial statements as of that date but does not include all of the information and notes required by GAAP for complete financial statements. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements in our Annual Report on Form 10-K for the year ended January 31, 2020, filed with the SEC on March 31, 2020. The condensed consolidated financial statements include the results of Smartsheet Inc. and its wholly owned subsidiaries, which are located in the United States, the United Kingdom, and Australia. All intercompany balances and transactions have been eliminated upon consolidation. In the opinion of management, the information contained herein reflects all adjustments necessary for a fair presentation of our condensed consolidated financial statements. All such adjustments are of a normal, recurring nature. The results of operations for the three and six months ended July 31, 2020 are not necessarily indicative of results to be expected for the full year ending January 31, 2021, or for any other interim period, or for any future year. |
Use of estimates | Use of estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. The Company bases its estimates on historical experience and on other assumptions that its management believes are reasonable under the circumstances. Actual results could differ from those estimates. The Company’s most significant estimates and judgments involve revenue recognition with respect to the allocation of transaction consideration for the Company’s offerings; determination of the amortization period for capitalized sales commission costs; capitalization of internal-use software development costs; valuation of assets and liabilities acquired as part of business combinations; and incremental borrowing rate estimates for operating leases, among others. |
Segment information | Segment information The Company operates as one operating segment. The Company’s chief operating decision maker is its Chief Executive Officer, who reviews financial information for purposes of making operating decisions, assessing financial performance, and allocating resources. |
Accounts receivable and allowance for doubtful accounts | Accounts receivable and allowance for doubtful accounts Accounts receivable are primarily comprised of trade receivables that are recorded at the invoice amount, net of an allowance for doubtful accounts. Subscription fees billed in advance of the related subscription term represent contract liabilities and are presented as accounts receivable and deferred revenues upon establishment of the unconditional right to invoice, typically upon signing of the non-cancelable service agreement. Our typical payment terms provide for customer payment within 30 days of the date of the contract. The allowance for doubtful accounts is based on the Company’s estimated expected credit losses derived upon assessment of various factors including historical trends on collectibility, composition of accounts receivable by aging, current market conditions, reasonable and supportable forecasts of future economic conditions, and other factors. As of July 31, 2020 , our allowance for doubtful accounts reflects increased collectibility concerns stemming from the macroeconomic conditions resulting from the COVID-19 pandemic and may increase in future periods as we ascertain further impacts to our customers and business. |
Restricted cash | Restricted cash Restricted cash as of July 31, 2020 and January 31, 2020 was $0.8 million and $0.9 million, respectively, primarily related to security deposits for the Company’s Bellevue, Boston, London, and Edinburgh leases. Short-term restricted cash amounts are included in prepaid expenses and other current assets and long-term restricted cash amounts are included in restricted cash on the condensed consolidated balance sheets. |
Internal-use software development costs | Internal-use software development costs The Company capitalizes certain qualifying costs incurred during the application development stage in connection with the development of internal-use software. Costs related to preliminary project activities and post-implementation activities are expensed in research and development (“R&D”) as incurred. R&D expenses consist primarily of employee-related costs, hardware- and software-related costs, costs of outside services used to supplement our internal staff, and overhead allocations. Internal-use software costs of $2.2 million were capitalized in the three months ended July 31, 2020, all of which related to costs incurred during the application development stage of software development for the Company’s platform to which subscriptions are sold. Internal-use software costs of $2.2 million were capitalized in the three months ended July 31, 2019, of which $1.4 million related to costs incurred during the application development stage of software development for the Company’s platform to which subscriptions are sold. Internal-use software costs of $3.9 million were capitalized in the six months ended July 31, 2020, all of which related to the application development stage of software development for the Company’s platform to which subscriptions are sold. Internal-use software costs of $3.8 million were capitalized in the six months ended July 31, 2019, of which $2.4 million related to costs incurred during the application development stage of software development for the Company’s platform to which subscriptions are sold. |
Concentrations of risk and significant customers | Concentrations of risk and significant customers Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash, cash equivalents, and accounts receivable. The Company maintains its cash accounts with financial institutions where deposits, at times, exceed the Federal Deposit Insurance Corporation limits. |
Recently adopted accounting pronouncements | Recently adopted accounting pronouncements In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, and has amended the standard thereafter, which modifies the accounting methodology for most financial instruments. The guidance establishes a new “expected loss model” that requires entities to estimate current expected credit losses on financial instruments by using all practical and relevant information. Additionally, any expected credit losses are to be reflected as allowances rather than reductions in the amortized cost of available-for-sale debt securities. The Company adopted the standard effective February 1, 2020. The adoption did not have a material effect on our condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-15 Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing costs incurred to develop or obtain internal-use software. The Company adopted the standard effective February 1, 2020 on a prospective basis. During the three and six months ended July 31, 2020, a total of $0.9 million and $1.6 million of costs, respectively, related to cloud computing arrangements were capitalized and were included in other long-term assets on the condensed consolidated balance sheet as of July 31, 2020. Recent accounting pronouncements not yet adopted In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes , which simplifies certain aspects of accounting for income taxes. The guidance is effective for interim and annual reporting periods beginning after December 15, 2020, and early adoption is permitted. The Company does not expect adoption of this standard to have a material effect on the Company’s condensed consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jul. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | Cash as reported on the condensed consolidated statements of cash flows consisted of the following (in thousands): July 31, 2020 2019 Cash and cash equivalents $ 545,975 $ 511,214 Restricted cash included in prepaid expenses and other current assets 111 — Restricted cash 659 886 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statement of cash flows $ 546,745 $ 512,100 |
Schedule of Restricted Cash and Cash Equivalents | Cash as reported on the condensed consolidated statements of cash flows consisted of the following (in thousands): July 31, 2020 2019 Cash and cash equivalents $ 545,975 $ 511,214 Restricted cash included in prepaid expenses and other current assets 111 — Restricted cash 659 886 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statement of cash flows $ 546,745 $ 512,100 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Jul. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following tables present calculations for basic and diluted net loss per share (in thousands, except share and per share data): Three Months Ended July 31, Six Months Ended July 31, 2020 2019 2020 2019 Numerator: Net loss $ (26,559) $ (19,114) $ (54,343) $ (38,924) Denominator: Weighted-average common shares outstanding 119,921 111,557 119,400 108,626 Net loss per share, basic and diluted $ (0.22) $ (0.17) $ (0.46) $ (0.36) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following outstanding shares of common stock equivalents (in thousands) as of the periods presented were excluded from the computation of diluted net loss per share attributable to common shareholders for the periods presented because the impact of including them would have been anti-dilutive: July 31, 2020 2019 Shares subject to outstanding common stock awards 13,103 13,348 Shares issuable pursuant to the 2018 Employee Stock Purchase Plan 145 116 Total potentially dilutive shares 13,248 13,464 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present information about the Company’s financial assets and liabilities that are measured at fair value and indicate the fair value hierarchy of the valuation inputs used (in thousands): July 31, 2020 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 518,263 $ — $ — $ 518,263 Total assets $ 518,263 $ — $ — $ 518,263 January 31, 2020 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 279,160 $ — $ — $ 279,160 Certificates of deposit — 50,585 — 50,585 Short-term investments: Certificates of deposit — 50,532 — 50,532 Total assets $ 279,160 $ 101,117 $ — $ 380,277 |
Business Combinations (Tables)
Business Combinations (Tables) | 6 Months Ended |
Jul. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The major classes of assets and liabilities to which the Company allocated the purchase price, net of the $0.2 million working capital adjustment, were as follows (in thousands): May 1, 2019 Cash $ 1,150 Current Assets 801 Intangible Assets 16,090 Goodwill 11,001 Current Liabilities (180) Deferred Revenue (1,030) Total $ 27,832 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The estimated useful lives and fair values of the identifiable intangible assets at acquisition date were as follows (dollars in thousands): Fair Value Expected Useful Life Software Technology $ 8,000 5 years Customer Relationships 7,990 8 years Trade Name 100 32 months Total intangible assets $ 16,090 |
Goodwill and Net Intangible A_2
Goodwill and Net Intangible Assets (Tables) | 6 Months Ended |
Jul. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The following table presents the components of net intangible assets (in thousands): As of July 31, 2020 As of January 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired software technology $ 9,866 $ (3,436) $ 6,430 $ 9,866 $ (2,325) $ 7,541 Acquired customer relationships 8,350 (1,459) 6,891 8,350 (900) 7,450 Trade names 100 (47) 53 100 (28) 72 Patents 170 (101) 69 170 (91) 79 Domain name 13 — 13 13 — 13 Total $ 18,499 $ (5,043) $ 13,456 $ 18,499 $ (3,344) $ 15,155 The components of intangible assets acquired as of the periods presented were as follows (dollars in thousands): As of July 31, 2020 As of January 31, 2020 Net Carrying Amount Weighted Average Life (Years) Net Carrying Amount Weighted Average Life (Years) Acquired software technology $ 6,430 3.6 $ 7,541 4.0 Acquired customer relationships 6,891 6.6 7,450 7.1 Trade names 53 1.4 72 1.9 Total $ 13,374 5.1 $ 15,063 5.5 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of July 31, 2020, estimated remaining amortization expense for the finite-lived intangible assets by fiscal year is as follows (in thousands): Remainder of Fiscal 2021 $ 1,659 Fiscal 2022 2,897 Fiscal 2023 2,608 Fiscal 2024 2,607 Fiscal 2025 1,406 Thereafter 2,266 Total $ 13,443 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jul. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following table includes a summary of the option activity during the six months ended July 31, 2020: Options Outstanding Weighted-Average Exercise Price Outstanding at January 31, 2020 9,076,671 $ 8.18 Granted 453,288 42.10 Exercised (1,271,126) 5.77 Forfeited or canceled (126,557) 10.98 Outstanding at July 31, 2020 8,132,276 10.40 Exercisable at July 31, 2020 5,026,994 6.19 |
Schedule of Restricted Stock Units Award Activity | The following table includes a summary of the RSU activity during the six months ended July 31, 2020: Number of Shares Underlying Outstanding RSUs Weighted-Average Grant-Date Fair Value per RSU Outstanding at January 31, 2020 3,138,330 $ 39.32 Granted 2,663,368 39.96 Vested (613,006) 39.28 Forfeited or canceled (217,655) 39.98 Outstanding at July 31, 2020 4,971,037 39.64 |
Schedule of Shares Available for Issuance Under ESPP | The following table includes a summary of shares available for issuance under our 2018 Plan and our ESPP during the six months ended July 31, 2020: 2018 Plan 2018 ESPP Balance at January 31, 2020 10,921,562 2,438,717 Authorized 5,909,708 1,181,942 Granted (3,116,656) (208,049) Forfeited 344,212 — Balance at July 31, 2020 14,058,826 3,412,610 |
Schedule of Share-based Compensation Expense | Share-based compensation expense included in the condensed consolidated statements of operations and comprehensive loss was as follows (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2020 2019 2020 2019 Cost of subscription revenue $ 1,113 $ 356 $ 2,008 $ 591 Cost of professional services revenue 566 298 999 515 Research and development 6,199 3,317 11,327 5,589 Sales and marketing 6,738 3,276 11,844 5,385 General and administrative 3,544 1,839 6,400 3,303 Total share-based compensation expense* $ 18,160 $ 9,086 $ 32,578 $ 15,383 *Includes amortization related to share-based compensation that was capitalized in internal-use software in previous periods. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jul. 31, 2020 | |
Leases [Abstract] | |
Lease, Cost | The components of lease expense recorded in the condensed consolidated statements of operations and comprehensive loss were as follows (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2020 2019 2020 2019 Operating lease cost $ 3,782 $ 2,634 $ 7,402 $ 5,365 Finance lease cost: Amortization of assets 1,041 1,025 2,117 1,997 Interest on lease liabilities 38 59 84 125 Short-term lease cost 337 142 727 269 Variable lease cost 687 432 1,250 835 Total lease costs $ 5,885 $ 4,292 $ 11,580 $ 8,591 Other information related to leases was as follows (dollars in thousands): Six Months Ended July 31, 2020 2019 Supplemental cash flow information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases* $ 6,778 $ 4,461 Operating cash flows from finance leases 84 118 Financing cash flows from finance leases 1,347 2,042 Right-of-use assets obtained in exchange for lease obligations: Operating leases 13,069 — Finance leases — 1,682 Weighted-average remaining lease term (in years): Operating leases 6.0 6.3 Finance leases 1.5 1.9 Weighted-average discount rate: Operating leases 5.5 % 6.4 % Finance leases 4.6 % 5.3 % *Includes cash paid for lease liability accretion of $1.9 million and $1.6 million for the six months ended July 31, 2020 and 2019, respectively. |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows (in thousands): Financial Statement Line Item As of July 31, 2020 As of January 31, 2020 Assets: Operating lease assets Operating lease right-of-use assets $ 65,046 $ 57,590 Finance lease assets Property and equipment, net 1,821 3,939 Total leased assets $ 66,867 $ 61,529 Liabilities: Current Operating Operating lease liabilities, current $ 14,116 $ 13,020 Finance Finance lease liabilities, current 1,916 2,465 Non-current Operating Operating lease liabilities, non-current 54,982 47,913 Finance Finance lease liabilities, non-current 866 1,664 Total lease liabilities $ 71,880 $ 65,062 |
Schedule of Future Minimum Rental Payment for Finance Leases | As of July 31, 2020, remaining maturities of lease liabilities were as follows (in thousands): Operating Leases Finance Leases Remainder of fiscal 2021 $ 7,336 $ 1,171 Fiscal 2022 14,294 1,286 Fiscal 2023 13,351 426 Fiscal 2024 13,640 — Fiscal 2025 11,953 — Thereafter 20,379 — Total lease payments 80,953 2,883 Less: imputed interest (11,855) (101) Total $ 69,098 $ 2,782 |
Schedule of Future Minimum Rental Payments for Operating Leases | As of July 31, 2020, remaining maturities of lease liabilities were as follows (in thousands): Operating Leases Finance Leases Remainder of fiscal 2021 $ 7,336 $ 1,171 Fiscal 2022 14,294 1,286 Fiscal 2023 13,351 426 Fiscal 2024 13,640 — Fiscal 2025 11,953 — Thereafter 20,379 — Total lease payments 80,953 2,883 Less: imputed interest (11,855) (101) Total $ 69,098 $ 2,782 |
Geographic Information (Tables)
Geographic Information (Tables) | 6 Months Ended |
Jul. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographical Area | Revenue by geographic location is determined by the location of the Company’s customers. The following table sets forth revenue (in thousands) by geographic area: Three Months Ended July 31, Six Months Ended July 31, 2020 2019 2020 2019 United States $ 74,238 $ 50,884 $ 143,224 $ 95,039 EMEA 8,819 7,323 17,524 13,572 Asia Pacific 3,623 3,408 7,043 6,233 Americas other than the United States 4,542 3,029 8,918 5,994 Total $ 91,222 $ 64,644 $ 176,709 $ 120,838 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) | Feb. 01, 2020 | Jul. 31, 2020USD ($) | Jul. 31, 2019USD ($) | Jul. 31, 2020USD ($)segment | Jul. 31, 2019USD ($) | Jan. 31, 2020USD ($) |
Lessee, Lease, Description [Line Items] | ||||||
Number of operating segments | segment | 1 | |||||
Payment period | 30 days | |||||
Internal use software costs capitalized | $ 2,200,000 | $ 2,200,000 | $ 3,900,000 | $ 3,800,000 | ||
Capitalized Computer Software, Additions, Software Sold To Customers | 2,200,000 | 1,400,000 | 3,900,000 | 2,400,000 | ||
Amortization expense of capitalized internal use software costs | 900,000 | $ 500,000 | 1,700,000 | $ 900,000 | ||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201815Member | |||||
Accounting Standards Update 2018-15 | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Capitalized cloud computing arrangement costs | 900,000 | $ 1,600,000 | ||||
Software | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Software useful life | 3 years | |||||
Letter of Credit Collateral | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Restricted cash | $ 800,000 | $ 800,000 | $ 900,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Jul. 31, 2020 | Jan. 31, 2020 | Jul. 31, 2019 | Jan. 31, 2019 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 545,975 | $ 515,924 | $ 511,214 | |
Restricted cash included in prepaid expenses and other current assets | 111 | 0 | ||
Restricted cash | 659 | 865 | 886 | |
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statement of cash flows | $ 546,745 | $ 516,789 | $ 512,100 | $ 215,705 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers - Deferred Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Revenue from External Customer [Line Items] | ||||
Revenue expected to be recognized from performance obligations | $ 180.1 | $ 180.1 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-08-01 | ||||
Revenue from External Customer [Line Items] | ||||
Percentage of revenue related to remaining performance obligations | 96.00% | 96.00% | ||
Period of expected timing of satisfaction related to remaining performance obligations | 12 months | 12 months | ||
Subscription | ||||
Revenue from External Customer [Line Items] | ||||
Revenue recognized included in deferred revenue | $ 68.7 | $ 45.3 | $ 110.9 | $ 68.5 |
Revenue expected to be recognized from performance obligations | 176.6 | 176.6 | ||
Professional services | ||||
Revenue from External Customer [Line Items] | ||||
Revenue recognized included in deferred revenue | 2 | $ 1.9 | 3.2 | $ 1.9 |
Revenue expected to be recognized from performance obligations | $ 3.4 | $ 3.4 |
Deferred Commissions (Details)
Deferred Commissions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | Jan. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |||||
Deferred commissions | $ 51,736 | $ 48,300 | $ 51,736 | $ 48,300 | $ 48,255 |
Amortization of deferred commission costs | $ 7,400 | $ 4,600 | $ 14,100 | $ 8,400 | |
Deferred commissions amortized period | 3 years | 3 years |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Numerator: | ||||
Net loss | $ (26,559) | $ (19,114) | $ (54,343) | $ (38,924) |
Denominator: | ||||
Weighted-average common shares outstanding (in shares) | 119,921 | 111,557 | 119,400 | 108,626 |
Net loss per share, basic and diluted (in dollars per share) | $ (0.22) | $ (0.17) | $ (0.46) | $ (0.36) |
Net Loss Per Share - Schedule_2
Net Loss Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands | 6 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive shares (in shares) | 13,248 | 13,464 |
Shares subject to outstanding common stock awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive shares (in shares) | 13,103 | 13,348 |
Shares issuable pursuant to the 2018 Employee Stock Purchase Plan | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive shares (in shares) | 145 | 116 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jul. 31, 2020 | Jan. 31, 2020 |
Cash equivalents: | ||
Total assets | $ 518,263 | $ 380,277 |
Level 1 | ||
Cash equivalents: | ||
Total assets | 518,263 | 279,160 |
Level 2 | ||
Cash equivalents: | ||
Total assets | 0 | 101,117 |
Level 3 | ||
Cash equivalents: | ||
Total assets | 0 | 0 |
Money market funds | ||
Cash equivalents: | ||
Cash equivalents and restricted cash | 518,263 | 279,160 |
Money market funds | Level 1 | ||
Cash equivalents: | ||
Cash equivalents and restricted cash | 518,263 | 279,160 |
Money market funds | Level 2 | ||
Cash equivalents: | ||
Cash equivalents and restricted cash | 0 | 0 |
Money market funds | Level 3 | ||
Cash equivalents: | ||
Cash equivalents and restricted cash | $ 0 | 0 |
Certificates of deposit | ||
Cash equivalents: | ||
Cash equivalents and restricted cash | 50,585 | |
Certificates of deposit | Level 1 | ||
Cash equivalents: | ||
Cash equivalents and restricted cash | 0 | |
Certificates of deposit | Level 2 | ||
Cash equivalents: | ||
Cash equivalents and restricted cash | 50,585 | |
Certificates of deposit | Level 3 | ||
Cash equivalents: | ||
Cash equivalents and restricted cash | 0 | |
Certificates of deposit | ||
Cash equivalents: | ||
Short-term investments | 50,532 | |
Certificates of deposit | Level 1 | ||
Cash equivalents: | ||
Short-term investments | 0 | |
Certificates of deposit | Level 2 | ||
Cash equivalents: | ||
Short-term investments | 50,532 | |
Certificates of deposit | Level 3 | ||
Cash equivalents: | ||
Short-term investments | $ 0 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - Artefact Product Group, LLC. - USD ($) $ in Millions | May 01, 2019 | Jul. 31, 2020 |
Business Acquisition [Line Items] | ||
Outstanding equity acquired (percentage) | 100.00% | |
Payment to acquire business | $ 27.8 | |
Working Capital Adjustments | 0.2 | |
Cash held in escrow | $ 2.8 | |
Cash released from escrow | $ 2.8 |
Business Combinations - Assets
Business Combinations - Assets and Liabilities Acquired (Details) - USD ($) $ in Thousands | Jul. 31, 2020 | Jan. 31, 2020 | May 01, 2019 |
Business Acquisition [Line Items] | |||
Intangible Assets | $ 13,374 | $ 15,063 | |
Goodwill | $ 16,497 | $ 16,497 | |
Artefact Product Group, LLC. | |||
Business Acquisition [Line Items] | |||
Cash | $ 1,150 | ||
Current Assets | 801 | ||
Intangible Assets | 16,090 | ||
Goodwill | 11,001 | ||
Current Liabilities | (180) | ||
Deferred Revenue | (1,030) | ||
Total | $ 27,832 |
Business Combinations - Intangi
Business Combinations - Intangible Assets Acquired (Details) - USD ($) $ in Thousands | May 01, 2019 | Apr. 30, 2020 | Jul. 31, 2020 |
Business Acquisition [Line Items] | |||
Expected Useful Life | 5 years 6 months | 5 years 1 month 6 days | |
Artefact Product Group, LLC. | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 16,090 | ||
Software Technology | |||
Business Acquisition [Line Items] | |||
Expected Useful Life | 4 years | 3 years 7 months 6 days | |
Software Technology | Artefact Product Group, LLC. | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 8,000 | ||
Expected Useful Life | 5 years | ||
Customer Relationships | |||
Business Acquisition [Line Items] | |||
Expected Useful Life | 7 years 1 month 6 days | 6 years 7 months 6 days | |
Customer Relationships | Artefact Product Group, LLC. | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 7,990 | ||
Expected Useful Life | 8 years | ||
Trade Name | |||
Business Acquisition [Line Items] | |||
Expected Useful Life | 1 year 10 months 24 days | 1 year 4 months 24 days | |
Trade Name | Artefact Product Group, LLC. | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 100 | ||
Expected Useful Life | 32 months |
Goodwill and Net Intangible A_3
Goodwill and Net Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Apr. 30, 2020 | Jul. 31, 2020 | Jan. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 18,499 | $ 18,499 | |
Accumulated Amortization | (5,043) | (3,344) | |
Net Carrying Amount | 13,456 | 15,155 | |
Net Carrying Amount | $ 13,374 | 15,063 | |
Weighted Average Life (Years) | 5 years 6 months | 5 years 1 month 6 days | |
Acquired software technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 9,866 | 9,866 | |
Accumulated Amortization | (3,436) | (2,325) | |
Net Carrying Amount | 6,430 | 7,541 | |
Net Carrying Amount | $ 6,430 | 7,541 | |
Weighted Average Life (Years) | 4 years | 3 years 7 months 6 days | |
Acquired customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 8,350 | 8,350 | |
Accumulated Amortization | (1,459) | (900) | |
Net Carrying Amount | 6,891 | 7,450 | |
Net Carrying Amount | $ 6,891 | 7,450 | |
Weighted Average Life (Years) | 7 years 1 month 6 days | 6 years 7 months 6 days | |
Trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 100 | 100 | |
Accumulated Amortization | (47) | (28) | |
Net Carrying Amount | 53 | 72 | |
Net Carrying Amount | $ 53 | 72 | |
Weighted Average Life (Years) | 1 year 10 months 24 days | 1 year 4 months 24 days | |
Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 170 | 170 | |
Accumulated Amortization | (101) | (91) | |
Net Carrying Amount | 69 | 79 | |
Domain name | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 13 | 13 | |
Accumulated Amortization | 0 | 0 | |
Net Carrying Amount | $ 13 | $ 13 |
Goodwill and Net Intangible A_4
Goodwill and Net Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 800 | $ 900 | $ 1,699 | $ 1,060 |
Goodwill and Net Intangible A_5
Goodwill and Net Intangible Assets - Estimated Remaining Amortization Expense (Details) $ in Thousands | Jul. 31, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of Fiscal 2021 | $ 1,659 |
Fiscal 2022 | 2,897 |
Fiscal 2022 | 2,608 |
Fiscal 2023 | 2,607 |
Fiscal 2024 | 1,406 |
Thereafter | 2,266 |
Total | $ 13,443 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2020USD ($) | Jul. 31, 2019USD ($) | Jul. 31, 2020USD ($)purchase_period | Jul. 31, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation | $ 18,160 | $ 9,086 | $ 32,578 | $ 15,383 |
2018 ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allowable payroll deduction as a percent of base cash compensation | 15.00% | |||
Offering period (in months) | 6 months | |||
Number of purchase periods | purchase_period | 1 | |||
Purchase period (in months) | 6 months | |||
Purchase price percent | 85.00% | |||
Share-based compensation | $ 5,300 | |||
Common Class A | 2018 ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period in which shares authorized increase | 8 years | |||
Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Expiration period | 10 years | |||
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Options (Details) - Stock Option - $ / shares | 6 Months Ended |
Jul. 31, 2020 | |
Options Outstanding | |
Outstanding beginning balance (in shares) | 9,076,671 |
Granted (in shares) | 453,288 |
Exercised and awarded (in shares) | (1,271,126) |
Forfeited or canceled (in shares) | (126,557) |
Outstanding ending balance (in shares) | 8,132,276 |
Exercisable (in shares) | 5,026,994 |
Weighted-Average Exercise Price | |
Outstanding beginning balance (in dollars per share) | $ 8.18 |
Granted (in dollars per share) | 42.10 |
Exercised and awarded (in dollars per share) | 5.77 |
Forfeited or canceled (in dollars per share) | 10.98 |
Outstanding ending balance (in dollars per share) | 10.40 |
Exercisable (in dollars per share) | $ 6.19 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Units (Details) - RSUs | 6 Months Ended |
Jul. 31, 2020$ / sharesshares | |
Number of Shares Underlying Outstanding RSUs | |
Outstanding beginning balance (in shares) | shares | 3,138,330 |
Granted (in shares) | shares | 2,663,368 |
Vested (in shares) | shares | (613,006) |
Forfeited or canceled (in shares) | shares | (217,655) |
Outstanding ending balance (in shares) | shares | 4,971,037 |
Weighted-Average Grant-Date Fair Value per RSU | |
Outstanding beginning balance (in dollars per share) | $ / shares | $ 39.32 |
Granted (in dollars per share) | $ / shares | 39.96 |
Vested (in dollars per share) | $ / shares | 39.28 |
Forfeited or canceled (in dollars per share) | $ / shares | 39.98 |
Outstanding ending balance (in dollars per share) | $ / shares | $ 39.64 |
Share-Based Compensation - 2018
Share-Based Compensation - 2018 Plan and 2018 Employee Stock Purchase Plan (Details) | 6 Months Ended |
Jul. 31, 2020shares | |
2018 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Balance at beginning of period (in shares) | 10,921,562 |
Authorized (in shares) | 5,909,708 |
Granted (in shares) | (3,116,656) |
Forfeited (in shares) | 344,212 |
Balance at end of period (in shares) | 14,058,826 |
2018 ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Balance at beginning of period (in shares) | 2,438,717 |
Authorized (in shares) | 1,181,942 |
Granted (in shares) | (208,049) |
Forfeited (in shares) | 0 |
Balance at end of period (in shares) | 3,412,610 |
Share-Based Compensation - Shar
Share-Based Compensation - Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | $ 18,160 | $ 9,086 | $ 32,578 | $ 15,383 |
Cost of subscription revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | 1,113 | 356 | 2,008 | 591 |
Cost of professional services revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | 566 | 298 | 999 | 515 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | 6,199 | 3,317 | 11,327 | 5,589 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | 6,738 | 3,276 | 11,844 | 5,385 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | $ 3,544 | $ 1,839 | $ 6,400 | $ 3,303 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Income Taxes [Line Items] | ||||
Income tax provision (benefit) | $ 75 | $ (39) | $ 148 | $ (74) |
CARES Act | ||||
Income Taxes [Line Items] | ||||
Taxes payable, employer portion of social security | 4,700 | 4,700 | ||
Maximum | ||||
Income Taxes [Line Items] | ||||
Income tax provision (benefit) | $ 100 | $ (100) | $ 100 | $ (100) |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 6 Months Ended |
Jul. 31, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | |
Option to extend lease (in years) | 5 years |
Future noncancellable lease payments | $ 26.5 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term (in years) | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term (in years) | 9 years |
Term of contract for lease not yet commenced (in years) | 8 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Leases [Abstract] | ||||
Operating lease cost | $ 3,782 | $ 2,634 | $ 7,402 | $ 5,365 |
Finance lease cost: | ||||
Amortization of assets | 1,041 | 1,025 | 2,117 | 1,997 |
Interest on lease liabilities | 38 | 59 | 84 | 125 |
Short-term lease cost | 337 | 142 | 727 | 269 |
Variable lease cost | 687 | 432 | 1,250 | 835 |
Total lease costs | $ 5,885 | $ 4,292 | $ 11,580 | $ 8,591 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Jul. 31, 2020 | Jan. 31, 2020 | Jan. 31, 2019 |
Assets: | |||
Operating lease assets | $ 65,046 | $ 57,590 | $ 57,590 |
Finance lease assets | 1,821 | 3,939 | |
Total leased assets | 66,867 | 61,529 | |
Current | |||
Operating | 14,116 | 13,020 | 13,020 |
Finance | 1,916 | 2,465 | 2,465 |
Non-current | |||
Operating | 54,982 | 47,913 | 47,913 |
Finance | 866 | $ 1,664 | 1,664 |
Total lease liabilities | $ 71,880 | $ 65,062 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 31, 2020 | Jul. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases* | $ 6,778 | $ 4,461 |
Operating cash flows from finance leases | 84 | 118 |
Financing cash flows from finance leases | 1,347 | 2,042 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 13,069 | 0 |
Finance leases | $ 0 | $ 1,682 |
Weighted-average remaining lease term (in years): | ||
Operating leases | 6 years | 6 years 3 months 18 days |
Finance leases | 1 year 6 months | 1 year 10 months 24 days |
Weighted-average discount rate: | ||
Operating leases | 5.50% | 6.40% |
Finance leases | 4.60% | 5.30% |
Cash paid for lease liability accretion | $ 1,900 | $ 1,600 |
Leases - Schedule of Future Pay
Leases - Schedule of Future Payments for Operating and Finance Leases (Details) $ in Thousands | Jul. 31, 2020USD ($) |
Operating Leases | |
Remainder of fiscal 2021 | $ 7,336 |
Fiscal 2022 | 14,294 |
Fiscal 2023 | 13,351 |
Fiscal 2024 | 13,640 |
Fiscal 2025 | 11,953 |
Thereafter | 20,379 |
Total lease payments | 80,953 |
Less: imputed interest | (11,855) |
Total | 69,098 |
Finance Leases | |
Remainder of fiscal 2021 | 1,171 |
Fiscal 2022 | 1,286 |
Fiscal 2023 | 426 |
Fiscal 2024 | 0 |
Fiscal 2025 | 0 |
Thereafter | 0 |
Total lease payments | 2,883 |
Less: imputed interest | (101) |
Total | $ 2,782 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jul. 31, 2020 | Jan. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Purchase commitment, period | 4 years | 3 years |
Purchase commitment | $ 75,000,000 | $ 15,000,000 |
Purchase commitment to be paid in 2021 | 7,500,000 | |
Purchase commitment to be paid in 2022 | 16,300,000 | |
Purchase commitment to be paid in 2023 | 18,800,000 | |
Purchase commitment to be paid in 2024 | 21,300,000 | |
Purchase commitment to be paid in 2025 | $ 11,300,000 |
Geographic Information - Schedu
Geographic Information - Schedule of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 91,222 | $ 64,644 | $ 176,709 | $ 120,838 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 74,238 | 50,884 | 143,224 | 95,039 |
EMEA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 8,819 | 7,323 | 17,524 | 13,572 |
Asia Pacific | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 3,623 | 3,408 | 7,043 | 6,233 |
Americas other than the United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 4,542 | $ 3,029 | $ 8,918 | $ 5,994 |
Geographic Information - Narrat
Geographic Information - Narrative (Details) - USD ($) $ in Thousands | Jul. 31, 2020 | Jan. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 27,220 | $ 26,981 |
Non-US | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 0 | $ 0 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) - Brandfolder Inc. - Forecast [Member] $ in Millions | 2 Months Ended |
Oct. 31, 2020USD ($) | |
Subsequent Event [Line Items] | |
Outstanding equity acquired (percentage) | 100.00% |
Subsequent Event | |
Subsequent Event [Line Items] | |
Aggregate consideration payable | $ 150 |
Cash paid | $ 124 |