Cover Page
Cover Page - shares | 3 Months Ended | |
Apr. 30, 2021 | May 28, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 30, 2021 | |
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) | 125,111,961 | |
Document Fiscal Year Focus | 2022 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001366561 | |
Current Fiscal Year End Date | --01-31 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Revenue | ||
Total revenue | $ 117,082 | $ 85,487 |
Cost of revenue | ||
Total cost of revenue | 26,572 | 18,441 |
Gross profit | 90,510 | 67,046 |
Operating expenses | ||
Research and development | 36,474 | 25,991 |
Sales and marketing | 71,379 | 54,783 |
General and administrative | 21,018 | 15,096 |
Total operating expenses | 128,871 | 95,870 |
Loss from operations | (38,361) | (28,824) |
Interest income | 11 | 1,327 |
Other income (expense), net | 1,327 | (214) |
Loss before income tax provision | (37,023) | (27,711) |
Income tax provision | 49 | 73 |
Net loss and comprehensive loss | $ (37,072) | $ (27,784) |
Net loss per share, basic (in dollars per share) | $ (0.30) | $ (0.23) |
Net loss per share, diluted (in dollars per share) | $ (0.30) | $ (0.23) |
Weighted-average common shares outstanding, basic (in shares) | 124,110,000 | 118,868,000 |
Weighted-average common shares outstanding, diluted (in shares) | 124,110,000 | 118,868,000 |
Subscription | ||
Revenue | ||
Total revenue | $ 108,013 | $ 77,163 |
Cost of revenue | ||
Total cost of revenue | 18,563 | 11,781 |
Professional services | ||
Revenue | ||
Total revenue | 9,069 | 8,324 |
Cost of revenue | ||
Total cost of revenue | $ 8,009 | $ 6,660 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 30, 2021 | Jan. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 439,656 | $ 442,200 |
Accounts receivable, net of allowances of $6,255 and $6,933, respectively | 89,310 | 102,648 |
Prepaid expenses and other current assets | 17,454 | 13,524 |
Total current assets | 546,420 | 558,372 |
Restricted cash | 18 | 18 |
Deferred commissions | 66,669 | 60,529 |
Property and equipment, net | 32,389 | 28,613 |
Operating lease right-of-use assets | 77,590 | 81,081 |
Intangible assets, net | 51,618 | 54,139 |
Goodwill | 125,605 | 125,605 |
Other long-term assets | 3,167 | 3,432 |
Total assets | 903,476 | 911,789 |
Current liabilities | ||
Accounts payable | 2,832 | 2,851 |
Accrued compensation and related benefits | 35,780 | 47,861 |
Other accrued liabilities | 11,704 | 17,263 |
Operating lease liabilities, current | 17,381 | 17,059 |
Deferred revenue | 238,691 | 222,689 |
Total current liabilities | 306,388 | 307,723 |
Operating lease liabilities, non-current | 68,698 | 71,925 |
Deferred revenue, non-current | 976 | 1,308 |
Other long-term liabilities | 3,904 | 3,904 |
Total liabilities | 379,966 | 384,860 |
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 April 30, 2021 and January 31, 2021 | 0 | 0 |
Additional paid-in capital | 932,019 | 898,366 |
Accumulated deficit | (408,509) | (371,437) |
Total shareholders’ equity | 523,510 | 526,929 |
Total liabilities and shareholders’ equity | 903,476 | 911,789 |
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 | Apr. 30, 2021 | Jan. 31, 2021 |
Current assets | ||
Accounts receivable, allowances | $ 6,255 | $ 6,933 |
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) | 124,610,729 | 123,272,902 |
Common stock outstanding (in shares) | 124,610,729 | 123,272,902 |
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, 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) | 1,269,951 | |||
Issuance of common stock under employee stock plans | 10,300 | 10,300 | ||
Taxes paid related to net share settlement of equity awards | (969) | (969) | ||
Share-based compensation expense | 14,756 | 14,756 | ||
Net loss and comprehensive loss | (27,784) | (27,784) | ||
Ending balance, common stock (in shares) at Apr. 30, 2020 | 119,464,110 | |||
Ending balance at Apr. 30, 2020 | 510,363 | $ 0 | 794,605 | (284,242) |
Beginning balance, common stock (in shares) at Jan. 31, 2021 | 123,272,902 | |||
Beginning balance at Jan. 31, 2021 | 526,929 | $ 0 | 898,366 | (371,437) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock under employee stock plans (in shares) | 1,337,827 | |||
Issuance of common stock under employee stock plans | 12,315 | 12,315 | ||
Taxes paid related to net share settlement of equity awards | (2,763) | (2,763) | ||
Share-based compensation expense | 24,101 | 24,101 | ||
Net loss and comprehensive loss | (37,072) | (37,072) | ||
Ending balance, common stock (in shares) at Apr. 30, 2021 | 124,610,729 | |||
Ending balance at Apr. 30, 2021 | $ 523,510 | $ 0 | $ 932,019 | $ (408,509) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Cash flows from operating activities | ||
Net loss | $ (37,072) | $ (27,784) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Share-based compensation expense | 23,717 | 14,362 |
Depreciation and amortization of property and equipment | 2,271 | 2,988 |
Amortization of deferred commission costs | 9,201 | 6,719 |
Unrealized foreign currency (gain) loss | (319) | 97 |
Amortization of intangible assets | 2,521 | 849 |
Non-cash operating lease costs | 3,491 | 2,736 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 13,357 | 7,442 |
Prepaid expenses and other current assets | (3,634) | (2,213) |
Other long-term assets | 199 | (804) |
Accounts payable | (1,072) | (1,996) |
Other accrued liabilities | (5,480) | (1,853) |
Accrued compensation and related benefits | (7,465) | (19,861) |
Deferred commissions | (15,341) | (8,321) |
Other long-term liabilities | 0 | 1,531 |
Deferred revenue | 15,670 | 4,405 |
Operating lease liabilities | (3,005) | (2,582) |
Net cash used in operating activities | (2,961) | (24,285) |
Cash flows from investing activities | ||
Proceeds from early termination of short-term investments | 0 | 50,532 |
Purchases of property and equipment | (3,220) | (1,018) |
Capitalized internal-use software development costs | (2,017) | (2,244) |
Net cash provided by (used in) investing activities | (5,237) | 47,270 |
Cash flows from financing activities | ||
Payments on principal of finance leases | 0 | (680) |
Payments of deferred offerings costs | 0 | (59) |
Proceeds from exercise of stock options | 3,403 | 3,467 |
Taxes paid related to net share settlement of restricted stock units | (2,763) | (969) |
Proceeds from Employee Stock Purchase Plan | 4,687 | 3,614 |
Net cash provided by financing activities | 5,327 | 5,373 |
Effects of changes in foreign currency exchange rates on cash, cash equivalents, and restricted cash | 447 | (249) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (2,424) | 28,109 |
Beginning of period | 442,348 | 516,789 |
End of period | 439,924 | 544,898 |
Supplemental disclosures | ||
Cash paid for interest | 0 | 46 |
Cash paid for income taxes | 27 | 14 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 0 | 13,076 |
Accrued purchases of property and equipment (including internal-use software) | 1,505 | 709 |
Share-based compensation expense capitalized in internal-use software development costs | $ 384 | $ 350 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 3 Months Ended |
Apr. 30, 2021 | |
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 dynamic work, enabling teams and organizations of all sizes 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, 2021 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, 2021, filed with the SEC on March 25, 2021. 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 months ended April 30, 2021 are not necessarily indicative of results to be expected for the full year ending January 31, 2022, 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 | 3 Months Ended |
Apr. 30, 2021 | |
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. Restricted cash Restricted cash as of April 30, 2021 and January 31, 2021 was $0.3 million and $0.1 million, respectively, primarily related to Australian employee ESPP contributions. 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): April 30, 2021 2020 Cash and cash equivalents $ 439,656 $ 544,178 Restricted cash included in prepaid expenses and other current assets 250 — Restricted cash 18 720 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows $ 439,924 $ 544,898 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 $1.8 million were capitalized in each of the three-month periods ended April 30, 2021 and April 30, 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. 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 $1.2 million and $0.8 million for the three months ended April 30, 2021 and 2020, 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 April 30, 2021 or January 31, 2021. No individual customer represented more than 10% of revenue for the three months ended April 30, 2021 or 2020. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Apr. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers During the three months ended April 30, 2021 and 2020, the Company recognized $87.0 million and $62.0 million of subscription revenue, respectively, and $3.6 million and $2.8 million of professional services revenue, respectively, which were included in the deferred revenue balance as of January 31, 2021 and 2020, respectively. As of April 30, 2021, approximately $274.9 million of revenue, including amounts already invoiced and amounts contracted but not yet invoiced, was expected to be recognized from remaining performance obligations, of which $268.6 million related to subscription services and $6.3 million related to professional services. Approximately 92% of revenue related to total remaining performance obligations is expected to be recognized in the next 12 months. Deferred commissions were $66.7 million as of April 30, 2021 and $60.5 million as of January 31, 2021. Amortization expense for deferred commissions was $9.2 million and $6.7 million for the three months ended April 30, 2021 and 2020, 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 | 3 Months Ended |
Apr. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Commissions | Revenue from Contracts with Customers During the three months ended April 30, 2021 and 2020, the Company recognized $87.0 million and $62.0 million of subscription revenue, respectively, and $3.6 million and $2.8 million of professional services revenue, respectively, which were included in the deferred revenue balance as of January 31, 2021 and 2020, respectively. As of April 30, 2021, approximately $274.9 million of revenue, including amounts already invoiced and amounts contracted but not yet invoiced, was expected to be recognized from remaining performance obligations, of which $268.6 million related to subscription services and $6.3 million related to professional services. Approximately 92% of revenue related to total remaining performance obligations is expected to be recognized in the next 12 months. Deferred commissions were $66.7 million as of April 30, 2021 and $60.5 million as of January 31, 2021. Amortization expense for deferred commissions was $9.2 million and $6.7 million for the three months ended April 30, 2021 and 2020, 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 | 3 Months Ended |
Apr. 30, 2021 | |
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 April 30, 2021 2020 Numerator: Net loss $ (37,072) $ (27,784) Denominator: Weighted-average common shares outstanding 124,110 118,868 Net loss per share, basic and diluted $ (0.30) $ (0.23) 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: April 30, 2021 2020 Shares subject to outstanding common stock awards 12,050 13,673 Shares issuable pursuant to the 2018 Employee Stock Purchase Plan 54 50 Total potentially dilutive shares 12,104 13,723 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 30, 2021 | |
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. Assets and liabilities measured at fair value on a 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): April 30, 2021 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 378,284 $ — $ — $ 378,284 Total assets $ 378,284 $ — $ — $ 378,284 January 31, 2021 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 378,281 $ — $ — $ 378,281 Total assets $ 378,281 $ — $ — $ 378,281 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. There were no transfers between fair value measurement levels during the three months ended April 30, 2021 or 2020. Assets and liabilities measured at fair value on a non-recurring basis See Note 7, Business Combinations, and Note 8, Goodwill and Net Intangibles , of these notes to our condensed consolidated financial statements for fair value measurements of certain assets and liabilities recorded at fair value on a non-recurring basis. |
Business Combinations
Business Combinations | 3 Months Ended |
Apr. 30, 2021 | |
Business Combinations [Abstract] | |
Business Combinations | Business CombinationsBrandfolder On September 14, 2020, we acquired 100% of the outstanding equity of Brandfolder, Inc. (“Brandfolder”), a Delaware corporation, pursuant to an Agreement and Plan of Merger (the “Brandfolder Merger Agreement”). Combining Brandfolder capabilities with Smartsheet creates dynamic solutions that manage workflows around content and collaboration. The Company has included the financial results of Brandfolder in our condensed consolidated financial statements from the acquisition date. We incurred acquisition costs of $1.0 million during the year ended January 31, 2021 and less than $0.1 million during the three months ended April 30, 2021. These costs included legal and accounting fees and other costs directly related to the acquisition of Brandfolder and are recognized within general and administrative expenses in the condensed consolidated statements of operations and comprehensive loss. The acquisition date fair value of the consideration transferred for Brandfolder was approximately $152.5 million, which consisted of the following (in thousands): Fair Value Cash $ 126,589 Class A Common Stock 25,872 Total $ 152,461 The fair value of the Class A Common Stock issued as part of the consideration paid for Brandfolder was determined on the basis of the closing market price of Smartsheet’s common shares on the acquisition date. Of the cash paid at closing, $0.7 million is held in a third-party escrow account for a 12-month period after closing to secure our indemnification rights under the Brandfolder Merger Agreement. Additionally, we granted certain continuing employees of Brandfolder restricted stock awards with service conditions, which total 96,620 shares of our Class A common stock with an aggregate grant date fair value of $4.5 million that will be accounted for as post-acquisition share-based compensation expense over the vesting period. In the three months ended April 30, 2021, we incurred share-based compensation expense related to these awards of $0.5 million. 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. Fair values were determined using income and cost approaches. The fair value measurements of the intangible assets were based primarily on significant unobservable inputs and thus represent a Level 3 measurement as defined in ASC 820. The following table summarizes the preliminary acquisition date fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands): September 14, 2020 Cash $ 2,530 Accounts receivable 2,649 Contract assets 1,620 Right-of-Use assets 895 Other assets 991 Intangible assets 45,270 Goodwill 109,108 Accounts payable, accrued expenses and other current liabilities (1,411) Deferred revenue (4,655) Lease liabilities, non-current (522) Net deferred tax liability (4,014) Total $ 152,461 The excess purchase price consideration was recorded as goodwill, and is primarily attributable to the acquired assembled workforce and expanded market opportunities. The purchase price allocation was prepared on a preliminary basis and may be subject to further adjustments as additional information becomes available concerning the fair value of the assets acquired and liabilities assumed. The primary areas that remain preliminary as of the date of this Form 10-Q relate to the fair values of intangible assets acquired, certain tangible assets and liabilities acquired, income taxes and residual goodwill. The Company expects to finalize the valuation as soon as practicable, but not later than one year from the acquisition date. The goodwill recognized upon acquisition is not 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. 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 Discount Rate Software technology $ 17,400 5 years 10.0 % Customer relationships 16,590 7 years 11.0 % Customer relationships - reseller 7,280 7 years 13.0 % Trade name 4,000 9 years 13.8 % Total intangible assets $ 45,270 The identifiable intangible assets were valued as follows: Software technology - we valued the finite-lived software technology using a relief-from-royalty method under the income approach. This method estimates fair value by forecasting avoided royalties, reducing them by maintenance-related research and development expenses and taxes, and discounting the resulting net cash flows to a present value using an appropriate discount rate. We applied judgment which involved the use of significant assumptions with respect to the future revenue forecast, technology life, royalty rate, and the discount rate. Customer relationships - we valued the finite-lived customer relationships using the multi-period excess earnings method. This method involves forecasting the net earnings expected to be generated by the asset, reducing them by appropriate returns on contributory assets, and then discounting the resulting net cash flows to a present value using an appropriate discount rate. We applied judgment which involved the use of the significant assumptions with respect to the future cash flows forecast, base year annual recurring revenue, customer churn rate, and the discount rate. Customer relationships - reseller - we valued the finite-lived reseller-related customer relationships using an incremental cash flow approach. This method involves forecasting the incremental revenues expected to be generated by having the existing reseller relationship in place at acquisition, reducing them by appropriate operating expenses, taxes, and returns on contributory assets, and then discounting the resulting net cash flows to a present value using an appropriate discount rate. We applied judgment which involved the use of significant assumptions with respect to the future cash flows forecast and the discount rate. Trade name - we valued the finite-lived trade name using the relief-from-royalty method under the income approach. This method involves forecasting avoided royalties, reducing them by income taxes, and then discounting the resulting net cash flows to a present value using an appropriate discount rate. We applied judgment which involved the use of significant assumptions with respect to our income forecast. |
Goodwill and Net Intangible Ass
Goodwill and Net Intangible Assets | 3 Months Ended |
Apr. 30, 2021 | |
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 three months ended April 30, 2021. The following table presents the components of net intangible assets (in thousands): As of April 30, 2021 As of January 31, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired software technology $ 25,400 $ (5,385) $ 20,015 $ 25,400 $ (4,115) $ 21,285 Acquired customer relationships 32,150 (4,361) 27,789 32,150 (3,235) 28,915 Trade names 4,100 (354) 3,746 4,100 (233) 3,867 Patents 170 (115) 55 170 (111) 59 Domain name 13 — 13 13 — 13 Total $ 61,833 $ (10,215) $ 51,618 $ 61,833 $ (7,694) $ 54,139 The components of acquired intangible assets as of the periods presented were as follows (dollars in thousands): As of April 30, 2021 As of January 31, 2021 Net Carrying Amount Weighted Average Life (Years) Net Carrying Amount Weighted Average Life (Years) Acquired software technology $ 20,015 4.0 $ 21,285 4.3 Acquired customer relationships 27,789 6.3 28,915 6.5 Trade names 3,746 8.3 3,867 8.6 Total $ 51,550 5.6 $ 54,067 5.8 Amortization expense related to intangible assets was $2.5 million and $0.8 million for the three months ended April 30, 2021 and 2020, respectively. As of April 30, 2021, estimated remaining amortization expense for the finite-lived intangible assets by fiscal year is as follows (in thousands): Remainder of Fiscal 2022 $ 7,553 Fiscal 2023 9,942 Fiscal 2024 9,942 Fiscal 2025 8,740 Fiscal 2026 7,024 Thereafter 8,404 Total $ 51,605 |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Apr. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based CompensationThe 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. The Company has issued restricted stock awards (“RSAs”) to certain Brandfolder employees subject to vesting conditions. These shares were issued in a private placement transaction. As vesting of these RSAs is dependent on continuous employment, these were not considered part of the purchase price in accounting for the acquisition. 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. The RSAs are measured based on the grant date fair value of the awards and vest over a three-year period. Stock options The following table includes a summary of the option activity during the three months ended April 30, 2021: Options Outstanding Weighted-Average Exercise Price Outstanding at January 31, 2021 6,533,474 $ 12.07 Granted 302,603 62.56 Exercised (503,918) 7.78 Forfeited or canceled (95,061) 26.77 Outstanding at April 30, 2021 6,237,098 14.64 Exercisable at April 30, 2021 4,467,148 7.99 Restricted stock units The following table includes a summary of the RSU activity during the three months ended April 30, 2021: Number of Shares Underlying Outstanding RSUs Weighted-Average Grant-Date Fair Value per RSU Outstanding at January 31, 2021 4,765,240 $ 42.15 Granted 1,959,105 63.58 Vested (667,329) 37.25 Forfeited or canceled (243,993) 43.74 Outstanding at April 30, 2021 5,813,023 49.87 Restricted stock awards The following table includes a summary of the RSA activity during the three months ended April 30, 2021: Number of Shares Weighted-Average Grant-Date Fair Value per Share Outstanding at January 31, 2021 92,318 $ 46.93 Granted — — Vested (4,304) 46.93 Forfeited or canceled — — Outstanding at April 30, 2021 88,014 46.93 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 the activity during the three months ended April 30, 2021 of our shares available for issuance under our 2018 Plan and our ESPP: 2018 Plan 2018 ESPP Balance at January 31, 2021 13,654,077 3,234,516 Authorized 6,163,646 1,232,730 Granted (2,261,708) (198,183) Forfeited 339,054 — Balance at April 30, 2021 17,895,069 4,269,063 The aggregate number of shares reserved for issuance under our ESPP will increase automatically on February 1 of each of the first 10 calendar years after the first offering date under the ESPP by the number of shares equal to 1% of the total outstanding shares of our Class A common stock and Class B common stock as of the immediately preceding January 31 (rounded to the nearest whole share) or such lesser number of shares as may be determined by our board of directors in any particular year. The aggregate number of shares issued over the term of our ESPP, subject to stock-splits, recapitalizations or similar events, may not exceed 20,400,000 shares of our Class A common stock. As of April 30, 2021, $2.7 million has been withheld on behalf of our 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 April 30, 2021 2020 Cost of subscription revenue $ 1,495 $ 895 Cost of professional services revenue 673 433 Research and development 8,307 5,128 Sales and marketing 8,656 5,105 General and administrative 4,728 2,856 Total share-based compensation expense* $ 23,859 $ 14,417 *Includes amortization related to share-based compensation that was capitalized in internal-use software and other assets in previous period |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 30, 2021 | |
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 less than $0.1 million and $0.1 million for the three months ended April 30, 2021 and 2020, respectively, primarily attributable to income taxes in foreign jurisdictions and state income taxes. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) was signed into law. The CARES Act provides numerous tax provisions and other stimulus measures including temporary changes regarding the prior and future utilization of net operating losses, temporary changes to the prior and future limitations on interest deductions, temporary suspension of certain payment requirements for the employer portion of Social Security taxes, technical corrections from prior tax legislation for tax depreciation of certain qualified improvement property, and the creation of certain refundable employee retention credits. The Company elected to defer the employer portion of Social Security taxes and recorded the expense as incurred. As of April 30, 2021, these taxes totaled $7.8 million, of which $3.9 million was recorded in accrued compensation and related benefits and $3.9 million was recorded in other long-term liabilities on our condensed consolidated balance sheet. The deferral of these taxes does not impact the Company’s condensed consolidated statements of operations and comprehensive loss. |
Leases
Leases | 3 Months Ended |
Apr. 30, 2021 | |
Leases [Abstract] | |
Leases | LeasesThe Company has operating leases primarily related to corporate offices and certain equipment. Our leases have remaining lease terms of less than 1 year to 8 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 April 30, 2021 2020 Operating lease cost $ 4,532 $ 3,620 Finance lease cost: Amortization of assets — 1,076 Interest on lease liabilities — 46 Short-term lease cost 343 390 Variable lease cost 588 563 Total lease costs $ 5,463 $ 5,695 Other information related to leases was as follows (dollars in thousands): Three Months Ended April 30, 2021 2020 Supplemental cash flow information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases* $ 4,100 $ 3,469 Operating cash flows from finance leases $ — $ 46 Financing cash flows from finance leases $ — $ 680 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ — $ 13,076 Finance leases $ — $ — Weighted-average remaining lease term (in years): Operating leases 6.0 6.2 Finance leases — 1.6 Weighted-average discount rate: Operating leases 5.1 % 5.5 % Finance leases — % 4.6 % *Includes cash paid for lease liability accretion of $1.1 million and $1.0 million for the three months ended April 30, 2021 and 2020, respectively. As of April 30, 2021, remaining maturities of lease liabilities were as follows (in thousands): Operating Leases Remainder of Fiscal 2022 $ 13,397 Fiscal 2023 17,722 Fiscal 2024 17,755 Fiscal 2025 15,409 Fiscal 2026 13,357 Thereafter 21,565 Total lease payments 99,205 Less: imputed interest (13,126) Total $ 86,079 |
Leases | LeasesThe Company has operating leases primarily related to corporate offices and certain equipment. Our leases have remaining lease terms of less than 1 year to 8 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 April 30, 2021 2020 Operating lease cost $ 4,532 $ 3,620 Finance lease cost: Amortization of assets — 1,076 Interest on lease liabilities — 46 Short-term lease cost 343 390 Variable lease cost 588 563 Total lease costs $ 5,463 $ 5,695 Other information related to leases was as follows (dollars in thousands): Three Months Ended April 30, 2021 2020 Supplemental cash flow information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases* $ 4,100 $ 3,469 Operating cash flows from finance leases $ — $ 46 Financing cash flows from finance leases $ — $ 680 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ — $ 13,076 Finance leases $ — $ — Weighted-average remaining lease term (in years): Operating leases 6.0 6.2 Finance leases — 1.6 Weighted-average discount rate: Operating leases 5.1 % 5.5 % Finance leases — % 4.6 % *Includes cash paid for lease liability accretion of $1.1 million and $1.0 million for the three months ended April 30, 2021 and 2020, respectively. As of April 30, 2021, remaining maturities of lease liabilities were as follows (in thousands): Operating Leases Remainder of Fiscal 2022 $ 13,397 Fiscal 2023 17,722 Fiscal 2024 17,755 Fiscal 2025 15,409 Fiscal 2026 13,357 Thereafter 21,565 Total lease payments 99,205 Less: imputed interest (13,126) Total $ 86,079 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Commitments As of April 30, 2021, there were no material changes to our commitments under contractual obligations as disclosed in our audited consolidated financial statements as of and for the year ended January 31, 2021. Legal matters An indemnification claim has been made against the Company by a former director, Ryan Hinkle, and Insight Venture Partners VII, L.P. and certain affiliated entities that are former shareholders of the Company (together with Hinkle, the “IVP Parties”), relating to a purported class action litigation in which the IVP Parties are defendants. On January 29, 2021, the IVP Parties filed a complaint against the Company in the Superior Court of Washington, King County, for the advancement of legal fees, costs, and expenses incurred in defending the purported class action claim. At this time, the Company cannot reasonably estimate the probability or magnitude of any alleged indemnification claim and does not believe that any advancement claim settlement would be material. |
Geographic Information
Geographic Information | 3 Months Ended |
Apr. 30, 2021 | |
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 April 30, 2021 2020 United States $ 96,403 $ 68,986 EMEA 11,061 8,705 Asia Pacific 4,454 3,420 Americas other than the United States 5,164 4,376 Total $ 117,082 $ 85,487 No individual country other than the United States contributed more than 10% of total revenue during any of the periods presented. Long-lived assets Long-lived assets by geographic location is based on the location of the legal entity that owns the asset. The following table sets forth long-lived assets by geographic area (in thousands): April 30, 2021 January 31, 2021 United States $ 85,774 $ 85,740 EMEA 4,509 5,007 Asia Pacific 2,181 2,020 Total $ 92,464 $ 92,767 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 30, 2021 | |
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, 2021 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, 2021, filed with the SEC on March 25, 2021. 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 months ended April 30, 2021 are not necessarily indicative of results to be expected for the full year ending January 31, 2022, 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. |
Restricted cash | Restricted cash Restricted cash as of April 30, 2021 and January 31, 2021 was $0.3 million and $0.1 million, respectively, primarily related to Australian employee ESPP contributions. |
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 $1.8 million were capitalized in each of the three-month periods ended April 30, 2021 and April 30, 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. |
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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
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): April 30, 2021 2020 Cash and cash equivalents $ 439,656 $ 544,178 Restricted cash included in prepaid expenses and other current assets 250 — Restricted cash 18 720 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows $ 439,924 $ 544,898 |
Schedule of Restricted Cash and Cash Equivalents | Cash as reported on the condensed consolidated statements of cash flows consisted of the following (in thousands): April 30, 2021 2020 Cash and cash equivalents $ 439,656 $ 544,178 Restricted cash included in prepaid expenses and other current assets 250 — Restricted cash 18 720 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows $ 439,924 $ 544,898 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
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 April 30, 2021 2020 Numerator: Net loss $ (37,072) $ (27,784) Denominator: Weighted-average common shares outstanding 124,110 118,868 Net loss per share, basic and diluted $ (0.30) $ (0.23) |
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: April 30, 2021 2020 Shares subject to outstanding common stock awards 12,050 13,673 Shares issuable pursuant to the 2018 Employee Stock Purchase Plan 54 50 Total potentially dilutive shares 12,104 13,723 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
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): April 30, 2021 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 378,284 $ — $ — $ 378,284 Total assets $ 378,284 $ — $ — $ 378,284 January 31, 2021 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 378,281 $ — $ — $ 378,281 Total assets $ 378,281 $ — $ — $ 378,281 |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The acquisition date fair value of the consideration transferred for Brandfolder was approximately $152.5 million, which consisted of the following (in thousands): Fair Value Cash $ 126,589 Class A Common Stock 25,872 Total $ 152,461 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary acquisition date fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands): September 14, 2020 Cash $ 2,530 Accounts receivable 2,649 Contract assets 1,620 Right-of-Use assets 895 Other assets 991 Intangible assets 45,270 Goodwill 109,108 Accounts payable, accrued expenses and other current liabilities (1,411) Deferred revenue (4,655) Lease liabilities, non-current (522) Net deferred tax liability (4,014) Total $ 152,461 |
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 Discount Rate Software technology $ 17,400 5 years 10.0 % Customer relationships 16,590 7 years 11.0 % Customer relationships - reseller 7,280 7 years 13.0 % Trade name 4,000 9 years 13.8 % Total intangible assets $ 45,270 |
Goodwill and Net Intangible A_2
Goodwill and Net Intangible Assets (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
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 April 30, 2021 As of January 31, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired software technology $ 25,400 $ (5,385) $ 20,015 $ 25,400 $ (4,115) $ 21,285 Acquired customer relationships 32,150 (4,361) 27,789 32,150 (3,235) 28,915 Trade names 4,100 (354) 3,746 4,100 (233) 3,867 Patents 170 (115) 55 170 (111) 59 Domain name 13 — 13 13 — 13 Total $ 61,833 $ (10,215) $ 51,618 $ 61,833 $ (7,694) $ 54,139 The components of acquired intangible assets as of the periods presented were as follows (dollars in thousands): As of April 30, 2021 As of January 31, 2021 Net Carrying Amount Weighted Average Life (Years) Net Carrying Amount Weighted Average Life (Years) Acquired software technology $ 20,015 4.0 $ 21,285 4.3 Acquired customer relationships 27,789 6.3 28,915 6.5 Trade names 3,746 8.3 3,867 8.6 Total $ 51,550 5.6 $ 54,067 5.8 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of April 30, 2021, estimated remaining amortization expense for the finite-lived intangible assets by fiscal year is as follows (in thousands): Remainder of Fiscal 2022 $ 7,553 Fiscal 2023 9,942 Fiscal 2024 9,942 Fiscal 2025 8,740 Fiscal 2026 7,024 Thereafter 8,404 Total $ 51,605 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following table includes a summary of the option activity during the three months ended April 30, 2021: Options Outstanding Weighted-Average Exercise Price Outstanding at January 31, 2021 6,533,474 $ 12.07 Granted 302,603 62.56 Exercised (503,918) 7.78 Forfeited or canceled (95,061) 26.77 Outstanding at April 30, 2021 6,237,098 14.64 Exercisable at April 30, 2021 4,467,148 7.99 |
Schedule of Restricted Stock Units Award Activity | The following table includes a summary of the RSU activity during the three months ended April 30, 2021: Number of Shares Underlying Outstanding RSUs Weighted-Average Grant-Date Fair Value per RSU Outstanding at January 31, 2021 4,765,240 $ 42.15 Granted 1,959,105 63.58 Vested (667,329) 37.25 Forfeited or canceled (243,993) 43.74 Outstanding at April 30, 2021 5,813,023 49.87 |
Nonvested Restricted Stock Shares Activity | The following table includes a summary of the RSA activity during the three months ended April 30, 2021: Number of Shares Weighted-Average Grant-Date Fair Value per Share Outstanding at January 31, 2021 92,318 $ 46.93 Granted — — Vested (4,304) 46.93 Forfeited or canceled — — Outstanding at April 30, 2021 88,014 46.93 |
Schedule of Shares Available for Issuance Under ESPP | The following table includes a summary of the activity during the three months ended April 30, 2021 of our shares available for issuance under our 2018 Plan and our ESPP: 2018 Plan 2018 ESPP Balance at January 31, 2021 13,654,077 3,234,516 Authorized 6,163,646 1,232,730 Granted (2,261,708) (198,183) Forfeited 339,054 — Balance at April 30, 2021 17,895,069 4,269,063 |
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 April 30, 2021 2020 Cost of subscription revenue $ 1,495 $ 895 Cost of professional services revenue 673 433 Research and development 8,307 5,128 Sales and marketing 8,656 5,105 General and administrative 4,728 2,856 Total share-based compensation expense* $ 23,859 $ 14,417 *Includes amortization related to share-based compensation that was capitalized in internal-use software and other assets in previous period |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
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 April 30, 2021 2020 Operating lease cost $ 4,532 $ 3,620 Finance lease cost: Amortization of assets — 1,076 Interest on lease liabilities — 46 Short-term lease cost 343 390 Variable lease cost 588 563 Total lease costs $ 5,463 $ 5,695 Other information related to leases was as follows (dollars in thousands): Three Months Ended April 30, 2021 2020 Supplemental cash flow information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases* $ 4,100 $ 3,469 Operating cash flows from finance leases $ — $ 46 Financing cash flows from finance leases $ — $ 680 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ — $ 13,076 Finance leases $ — $ — Weighted-average remaining lease term (in years): Operating leases 6.0 6.2 Finance leases — 1.6 Weighted-average discount rate: Operating leases 5.1 % 5.5 % Finance leases — % 4.6 % *Includes cash paid for lease liability accretion of $1.1 million and $1.0 million for the three months ended April 30, 2021 and 2020, respectively. |
Schedule of Future Minimum Rental Payment for Finance Leases | As of April 30, 2021, remaining maturities of lease liabilities were as follows (in thousands): Operating Leases Remainder of Fiscal 2022 $ 13,397 Fiscal 2023 17,722 Fiscal 2024 17,755 Fiscal 2025 15,409 Fiscal 2026 13,357 Thereafter 21,565 Total lease payments 99,205 Less: imputed interest (13,126) Total $ 86,079 |
Schedule of Future Minimum Rental Payments for Operating Leases | As of April 30, 2021, remaining maturities of lease liabilities were as follows (in thousands): Operating Leases Remainder of Fiscal 2022 $ 13,397 Fiscal 2023 17,722 Fiscal 2024 17,755 Fiscal 2025 15,409 Fiscal 2026 13,357 Thereafter 21,565 Total lease payments 99,205 Less: imputed interest (13,126) Total $ 86,079 |
Geographic Information (Tables)
Geographic Information (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
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 April 30, 2021 2020 United States $ 96,403 $ 68,986 EMEA 11,061 8,705 Asia Pacific 4,454 3,420 Americas other than the United States 5,164 4,376 Total $ 117,082 $ 85,487 |
Long-lived Assets by Geographic Areas | Long-lived assets by geographic location is based on the location of the legal entity that owns the asset. The following table sets forth long-lived assets by geographic area (in thousands): April 30, 2021 January 31, 2021 United States $ 85,774 $ 85,740 EMEA 4,509 5,007 Asia Pacific 2,181 2,020 Total $ 92,464 $ 92,767 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) $ in Millions | 3 Months Ended | ||
Apr. 30, 2021USD ($)segment | Apr. 30, 2020USD ($) | Jan. 31, 2021USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Number of operating segments | segment | 1 | ||
Internal use software costs capitalized, software sold to customers | $ 1.8 | ||
Internal use software costs capitalized | 1.8 | ||
Amortization expense of capitalized internal use software costs | $ 1.2 | $ 0.8 | |
Software | |||
Lessee, Lease, Description [Line Items] | |||
Software useful life | 3 years | ||
Letter of Credit Collateral | |||
Lessee, Lease, Description [Line Items] | |||
Restricted cash | $ 0.3 | $ 0.1 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jan. 31, 2021 | Apr. 30, 2020 | Jan. 31, 2020 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 439,656 | $ 442,200 | $ 544,178 | |
Restricted cash included in prepaid expenses and other current assets | 250 | 0 | ||
Restricted cash | 18 | 18 | 720 | |
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows | $ 439,924 | $ 442,348 | $ 544,898 | $ 516,789 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers - Deferred Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Revenue from External Customer [Line Items] | ||
Revenue expected to be recognized from performance obligations | $ 274.9 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-05-01 | ||
Revenue from External Customer [Line Items] | ||
Percentage of revenue related to remaining performance obligations | 92.00% | |
Period of expected timing of satisfaction related to remaining performance obligations | 12 months | |
Subscription | ||
Revenue from External Customer [Line Items] | ||
Revenue recognized included in deferred revenue | $ 87 | $ 62 |
Revenue expected to be recognized from performance obligations | 268.6 | |
Professional services | ||
Revenue from External Customer [Line Items] | ||
Revenue recognized included in deferred revenue | 3.6 | $ 2.8 |
Revenue expected to be recognized from performance obligations | $ 6.3 |
Deferred Commissions (Details)
Deferred Commissions (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Jan. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||
Deferred commissions | $ 66,669 | $ 60,529 | |
Amortization of deferred commission costs | $ 9,200 | $ 6,700 | |
Deferred commissions amortized period | 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, $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Numerator: | ||
Net loss and comprehensive loss | $ (37,072) | $ (27,784) |
Denominator: | ||
Weighted-average common shares outstanding, basic (in shares) | 124,110,000 | 118,868,000 |
Weighted-average common shares outstanding, diluted (in shares) | 124,110,000 | 118,868,000 |
Net loss per share, basic (in dollars per share) | $ (0.30) | $ (0.23) |
Net loss per share, diluted (in dollars per share) | $ (0.30) | $ (0.23) |
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 | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive shares (in shares) | 12,104 | 13,723 |
Shares subject to outstanding common stock awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive shares (in shares) | 12,050 | 13,673 |
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) | 54 | 50 |
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 | Apr. 30, 2021 | Jan. 31, 2021 |
Cash equivalents: | ||
Total assets | $ 378,284 | $ 378,281 |
Level 1 | ||
Cash equivalents: | ||
Total assets | 378,284 | 378,281 |
Level 2 | ||
Cash equivalents: | ||
Total assets | 0 | 0 |
Level 3 | ||
Cash equivalents: | ||
Total assets | 0 | 0 |
Money market funds | ||
Cash equivalents: | ||
Cash equivalents and restricted cash | 378,284 | 378,281 |
Money market funds | Level 1 | ||
Cash equivalents: | ||
Cash equivalents and restricted cash | 378,284 | 378,281 |
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 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ in Thousands | Sep. 14, 2020 | Apr. 30, 2021 | Apr. 30, 2020 | Jan. 31, 2021 |
Business Acquisition [Line Items] | ||||
Share-based compensation | $ 23,859 | $ 14,417 | ||
Expected Useful Life | 5 years 7 months 6 days | 5 years 9 months 18 days | ||
Brandfolder Inc. | ||||
Business Acquisition [Line Items] | ||||
Outstanding equity acquired (percentage) | 100.00% | |||
Acquisition costs | $ 1,000 | |||
Consideration transferred | $ 152,461 | |||
Cash held in escrow | $ 700 | |||
Expected Useful Life | 6 years 4 months 24 days | |||
Cash | $ 126,589 | |||
Brandfolder Inc. | Maximum | ||||
Business Acquisition [Line Items] | ||||
Acquisition costs | $ 100 | |||
Brandfolder Inc. | RSAs | Common Class A | ||||
Business Acquisition [Line Items] | ||||
Granted (in shares) | 96,620 | |||
Aggregate grant date fair value | $ 4,500 | |||
Share-based compensation | $ 500 |
Business Combinations - Fair Va
Business Combinations - Fair Value of Consideration Transferred (Details) - Brandfolder Inc. $ in Thousands | Sep. 14, 2020USD ($) |
Business Acquisition [Line Items] | |
Cash | $ 126,589 |
Class A Common Stock | 25,872 |
Total | $ 152,461 |
Business Combinations - Assets
Business Combinations - Assets and Liabilities Acquired (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jan. 31, 2021 | Sep. 14, 2020 |
Business Acquisition [Line Items] | |||
Intangible assets | $ 51,550 | $ 54,067 | |
Goodwill | $ 125,605 | $ 125,605 | |
Brandfolder Inc. | |||
Business Acquisition [Line Items] | |||
Cash | $ 2,530 | ||
Accounts receivable | 2,649 | ||
Contract assets | 1,620 | ||
Right-of-Use assets | 895 | ||
Other assets | 991 | ||
Intangible assets | 45,270 | ||
Goodwill | 109,108 | ||
Accounts payable, accrued expenses and other current liabilities | (1,411) | ||
Deferred revenue | (4,655) | ||
Lease liabilities, non-current | (522) | ||
Net deferred tax liability | (4,014) | ||
Total | $ 152,461 |
Business Combinations - Intangi
Business Combinations - Intangible Assets Acquired (Details) - USD ($) $ in Thousands | Sep. 14, 2020 | Apr. 30, 2021 | Jan. 31, 2021 |
Business Acquisition [Line Items] | |||
Expected Useful Life | 5 years 7 months 6 days | 5 years 9 months 18 days | |
Brandfolder Inc. | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 45,270 | ||
Expected Useful Life | 6 years 4 months 24 days | ||
Software technology | |||
Business Acquisition [Line Items] | |||
Expected Useful Life | 4 years | 4 years 3 months 18 days | |
Software technology | Brandfolder Inc. | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 17,400 | ||
Expected Useful Life | 5 years | ||
Discount Rate | 10.00% | ||
Customer relationships | |||
Business Acquisition [Line Items] | |||
Expected Useful Life | 6 years 3 months 18 days | 6 years 6 months | |
Customer relationships | Brandfolder Inc. | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 16,590 | ||
Expected Useful Life | 7 years | ||
Discount Rate | 11.00% | ||
Customer relationships - reseller | Brandfolder Inc. | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 7,280 | ||
Expected Useful Life | 7 years | ||
Discount Rate | 13.00% | ||
Trade name | |||
Business Acquisition [Line Items] | |||
Expected Useful Life | 8 years 3 months 18 days | 8 years 7 months 6 days | |
Trade name | Brandfolder Inc. | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 4,000 | ||
Expected Useful Life | 9 years | ||
Discount Rate | 13.80% |
Goodwill and Net Intangible A_3
Goodwill and Net Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Changes in goodwill | $ 0 | |
Measurement period adjustments | 0 | |
Amortization expense | $ 2,521 | $ 849 |
Goodwill and Net Intangible A_4
Goodwill and Net Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Apr. 30, 2021 | Jan. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 61,833 | $ 61,833 |
Accumulated Amortization | (10,215) | (7,694) |
Net Carrying Amount | 51,618 | 54,139 |
Net Carrying Amount | $ 51,550 | $ 54,067 |
Weighted Average Life (Years) | 5 years 7 months 6 days | 5 years 9 months 18 days |
Acquired software technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 25,400 | $ 25,400 |
Accumulated Amortization | (5,385) | (4,115) |
Net Carrying Amount | 20,015 | 21,285 |
Net Carrying Amount | $ 20,015 | $ 21,285 |
Weighted Average Life (Years) | 4 years | 4 years 3 months 18 days |
Acquired customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 32,150 | $ 32,150 |
Accumulated Amortization | (4,361) | (3,235) |
Net Carrying Amount | 27,789 | 28,915 |
Net Carrying Amount | $ 27,789 | $ 28,915 |
Weighted Average Life (Years) | 6 years 3 months 18 days | 6 years 6 months |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 4,100 | $ 4,100 |
Accumulated Amortization | (354) | (233) |
Net Carrying Amount | 3,746 | 3,867 |
Net Carrying Amount | $ 3,746 | $ 3,867 |
Weighted Average Life (Years) | 8 years 3 months 18 days | 8 years 7 months 6 days |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 170 | $ 170 |
Accumulated Amortization | (115) | (111) |
Net Carrying Amount | 55 | 59 |
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_5
Goodwill and Net Intangible Assets - Estimated Remaining Amortization Expense (Details) $ in Thousands | Apr. 30, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of Fiscal 2022 | $ 7,553 |
Fiscal 2023 | 9,942 |
Fiscal 2024 | 9,942 |
Fiscal 2025 | 8,740 |
Fiscal 2026 | 7,024 |
Thereafter | 8,404 |
Total | $ 51,605 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2021USD ($)purchasePeriodshares | Apr. 30, 2020USD ($) | Jan. 31, 2021shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation | $ | $ 23,859 | $ 14,417 | |
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 | purchasePeriod | 1 | ||
Purchase period (in months) | 6 months | ||
Purchase price percent | 85.00% | ||
Maximum number of shares authorized (in shares) | shares | 4,269,063 | 3,234,516 | |
Share-based compensation | $ | $ 2,700 | ||
Common Class A | 2018 ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period in which shares authorized increase | 10 years | ||
Common Class A | 2018 ESPP | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares authorized (in shares) | shares | 20,400,000 | ||
Common Class A and B | 2018 ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percent of shares outstanding | 1.00% | ||
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 | ||
RSAs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Options (Details) - Stock Option | 3 Months Ended |
Apr. 30, 2021$ / sharesshares | |
Options Outstanding | |
Outstanding beginning balance (in shares) | shares | 6,533,474 |
Granted (in shares) | shares | 302,603 |
Exercised and awarded (in shares) | shares | (503,918) |
Forfeited or canceled (in shares) | shares | (95,061) |
Outstanding ending balance (in shares) | shares | 6,237,098 |
Exercisable (in shares) | shares | 4,467,148 |
Weighted-Average Exercise Price | |
Outstanding beginning balance (in dollars per share) | $ / shares | $ 12.07 |
Granted (in dollars per share) | $ / shares | 62.56 |
Exercised and awarded (in dollars per share) | $ / shares | 7.78 |
Forfeited or canceled (in dollars per share) | $ / shares | 26.77 |
Outstanding ending balance (in dollars per share) | $ / shares | 14.64 |
Exercisable (in dollars per share) | $ / shares | $ 7.99 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Units (Details) - RSUs | 3 Months Ended |
Apr. 30, 2021$ / sharesshares | |
Number of Shares Underlying Outstanding RSUs | |
Outstanding beginning balance (in shares) | shares | 4,765,240 |
Granted (in shares) | shares | 1,959,105 |
Vested (in shares) | shares | (667,329) |
Forfeited or canceled (in shares) | shares | (243,993) |
Outstanding ending balance (in shares) | shares | 5,813,023 |
Weighted-Average Grant-Date Fair Value per RSU | |
Outstanding beginning balance (in dollars per share) | $ / shares | $ 42.15 |
Granted (in dollars per share) | $ / shares | 63.58 |
Vested (in dollars per share) | $ / shares | 37.25 |
Forfeited or canceled (in dollars per share) | $ / shares | 43.74 |
Outstanding ending balance (in dollars per share) | $ / shares | $ 49.87 |
Share-Based Compensation - Re_2
Share-Based Compensation - Restricted Stock Awards (Details) - Restricted Stock | 3 Months Ended |
Apr. 30, 2021$ / sharesshares | |
Number of Shares | |
Outstanding beginning balance (in shares) | shares | 92,318 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (4,304) |
Forfeited or canceled (in shares) | shares | 0 |
Outstanding ending balance (in shares) | shares | 88,014 |
Weighted-Average Grant-Date Fair Value per Share | |
Outstanding beginning balance (in dollars per share) | $ / shares | $ 46.93 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 46.93 |
Forfeited or canceled (in dollars per share) | $ / shares | 0 |
Outstanding ending balance (in dollars per share) | $ / shares | $ 46.93 |
Share-Based Compensation - 2018
Share-Based Compensation - 2018 Plan and 2018 Employee Stock Purchase Plan (Details) | 3 Months Ended |
Apr. 30, 2021shares | |
2018 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Balance at beginning of period (in shares) | 13,654,077 |
Authorized (in shares) | 6,163,646 |
Granted (in shares) | (2,261,708) |
Forfeited (in shares) | 339,054 |
Balance at end of period (in shares) | 17,895,069 |
2018 ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Balance at beginning of period (in shares) | 3,234,516 |
Authorized (in shares) | 1,232,730 |
Granted (in shares) | (198,183) |
Forfeited (in shares) | 0 |
Balance at end of period (in shares) | 4,269,063 |
Share-Based Compensation - Shar
Share-Based Compensation - Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total share-based compensation expense | $ 23,859 | $ 14,417 |
Cost of subscription revenue | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total share-based compensation expense | 1,495 | 895 |
Cost of professional services revenue | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total share-based compensation expense | 673 | 433 |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total share-based compensation expense | 8,307 | 5,128 |
Sales and marketing | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total share-based compensation expense | 8,656 | 5,105 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total share-based compensation expense | $ 4,728 | $ 2,856 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Income Taxes [Line Items] | ||
Income tax provision | $ 49 | $ 73 |
Maximum | ||
Income Taxes [Line Items] | ||
Income tax provision | 100 | |
CARES Act | ||
Income Taxes [Line Items] | ||
Taxes payable, employer portion of social security | 7,800 | |
CARES Act | Accounts Payable and Accrued Liabilities | ||
Income Taxes [Line Items] | ||
Taxes payable, employer portion of social security | 3,900 | |
CARES Act | Other Noncurrent Liabilities | ||
Income Taxes [Line Items] | ||
Taxes payable, employer portion of social security | $ 3,900 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 3 Months Ended |
Apr. 30, 2021 | |
Lessee, Lease, Description [Line Items] | |
Option to extend lease | 5 years |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 8 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 4,532 | $ 3,620 |
Finance lease cost: | ||
Amortization of assets | 0 | 1,076 |
Interest on lease liabilities | 0 | 46 |
Short-term lease cost | 343 | 390 |
Variable lease cost | 588 | 563 |
Total lease costs | $ 5,463 | $ 5,695 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases* | $ 4,100 | $ 3,469 |
Operating cash flows from finance leases | 0 | 46 |
Financing cash flows from finance leases | 0 | 680 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 0 | 13,076 |
Finance leases | $ 0 | $ 0 |
Weighted-average remaining lease term (in years): | ||
Operating leases | 6 years | 6 years 2 months 12 days |
Finance leases | 0 years | 1 year 7 months 6 days |
Weighted-average discount rate: | ||
Operating leases | 5.10% | 5.50% |
Finance leases | 0.00% | 4.60% |
Cash paid for lease liability accretion | $ 1,100 | $ 1,000 |
Leases - Schedule of Future Pay
Leases - Schedule of Future Payments for Operating and Finance Leases (Details) $ in Thousands | Apr. 30, 2021USD ($) |
Operating Leases | |
Remainder of Fiscal 2022 | $ 13,397 |
Fiscal 2023 | 17,722 |
Fiscal 2024 | 17,755 |
Fiscal 2025 | 15,409 |
Fiscal 2026 | 13,357 |
Thereafter | 21,565 |
Total lease payments | 99,205 |
Less: imputed interest | (13,126) |
Total | $ 86,079 |
Geographic Information - Schedu
Geographic Information - Schedule of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 117,082 | $ 85,487 | $ 85,487 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 96,403 | 68,986 | |
EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 11,061 | 8,705 | |
Asia Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 4,454 | 3,420 | |
Americas other than the United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 5,164 | $ 4,376 |
Geographic Information - Long-l
Geographic Information - Long-lived Assets (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jan. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | $ 92,464 | $ 92,767 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 85,774 | 85,740 |
EMEA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 4,509 | 5,007 |
Asia Pacific | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | $ 2,181 | $ 2,020 |