Cover Page
Cover Page - shares | 3 Months Ended | |
Apr. 30, 2023 | Jun. 01, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 30, 2023 | |
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 | 500 108th Ave NE, Suite 200 | |
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) | 133,608,334 | |
Document Fiscal Year Focus | 2024 | |
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 - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
Revenue | ||
Total revenue | $ 219,886 | $ 168,310 |
Cost of revenue | ||
Total cost of revenue | 45,881 | 37,158 |
Gross profit | 174,005 | 131,152 |
Operating expenses | ||
Research and development | 56,190 | 52,519 |
Sales and marketing | 114,952 | 115,391 |
General and administrative | 34,978 | 33,044 |
Total operating expenses | 206,120 | 200,954 |
Loss from operations | (32,115) | (69,802) |
Interest income | 5,217 | 388 |
Other income (expense), net | (536) | (828) |
Loss before income tax provision | (27,434) | (70,242) |
Income tax provision | 2,436 | 215 |
Net loss | $ (29,870) | $ (70,457) |
Net loss per share, basic (in dollars per share) | $ (0.23) | $ (0.55) |
Net loss per share, diluted (in dollars per share) | $ (0.23) | $ (0.55) |
Weighted-average shares outstanding used to compute net loss per share, basic (in shares) | 132,542 | 128,519 |
Weighted-average shares outstanding used to compute net loss per share, diluted (in shares) | 132,542 | 128,519 |
Subscription | ||
Revenue | ||
Total revenue | $ 206,001 | $ 155,276 |
Cost of revenue | ||
Total cost of revenue | 33,167 | 25,138 |
Professional services | ||
Revenue | ||
Total revenue | 13,885 | 13,034 |
Cost of revenue | ||
Total cost of revenue | $ 12,714 | $ 12,020 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (29,870) | $ (70,457) |
Other comprehensive loss | ||
Net unrealized gain (loss) on available-for-sale securities | 189 | (342) |
Foreign currency translation adjustments | (646) | 0 |
Other comprehensive loss | (457) | (342) |
Comprehensive loss | $ (30,327) | $ (70,799) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 30, 2023 | Jan. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 294,946 | $ 223,156 |
Short-term investments | 194,593 | 233,225 |
Accounts receivable, net of allowances of $5,586 and $6,285, respectively | 152,104 | 198,643 |
Prepaid expenses and other current assets | 68,025 | 55,063 |
Total current assets | 709,668 | 710,087 |
Restricted cash | 189 | 197 |
Deferred commissions | 129,058 | 121,785 |
Property and equipment, net | 39,162 | 39,395 |
Operating lease right-of-use assets | 51,123 | 54,278 |
Intangible assets, net | 36,097 | 39,069 |
Goodwill | 141,518 | 142,415 |
Other long-term assets | 3,135 | 2,983 |
Total assets | 1,109,950 | 1,110,209 |
Current liabilities | ||
Accounts payable | 1,727 | 2,125 |
Accrued compensation and related benefits | 53,106 | 68,347 |
Other accrued liabilities | 28,783 | 27,437 |
Operating lease liabilities, current | 19,299 | 19,220 |
Deferred revenue | 453,831 | 457,534 |
Total current liabilities | 556,746 | 574,663 |
Operating lease liabilities, non-current | 43,372 | 47,564 |
Deferred revenue, non-current | 1,530 | 2,195 |
Other long-term liabilities | 337 | 129 |
Total liabilities | 601,985 | 624,551 |
Commitments and Contingencies (Note 13) | ||
Shareholders’ equity | ||
Preferred stock, no par value; 10,000,000 shares authorized, no shares issued or outstanding as of April 30, 2023 and January 31, 2023 | 0 | 0 |
Additional paid-in capital | 1,296,364 | 1,243,730 |
Accumulated other comprehensive income (loss) | (356) | 101 |
Accumulated deficit | (788,043) | (758,173) |
Total shareholders’ equity | 507,965 | 485,658 |
Total liabilities and shareholders’ equity | 1,109,950 | 1,110,209 |
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, 2023 | Jan. 31, 2023 |
Current assets | ||
Accounts receivable, allowances | $ 5,586 | $ 6,285 |
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) | 132,912,458 | 131,845,028 |
Common stock outstanding (in shares) | 132,912,458 | 131,845,028 |
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_3
Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock (Class A) | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
Beginning balance, common stock (in shares) at Jan. 31, 2022 | 127,809,525 | ||||
Beginning balance at Jan. 31, 2022 | $ 504,779 | $ 0 | $ 1,047,313 | $ (542,534) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under employee stock plans (in shares) | 1,057,624 | ||||
Issuance of common stock under employee stock plans | 3,714 | 3,714 | |||
Taxes paid related to net share settlement of equity awards | (1,366) | (1,366) | |||
Share-based compensation expense | 44,648 | 44,648 | |||
Other comprehensive loss | (342) | (342) | |||
Net loss | (70,457) | (70,457) | |||
Ending balance, common stock (in shares) at Apr. 30, 2022 | 128,867,149 | ||||
Ending balance at Apr. 30, 2022 | 480,976 | $ 0 | 1,094,309 | (612,991) | (342) |
Beginning balance, common stock (in shares) at Jan. 31, 2023 | 131,845,028 | ||||
Beginning balance at Jan. 31, 2023 | 485,658 | $ 0 | 1,243,730 | (758,173) | 101 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under employee stock plans (in shares) | 1,067,430 | ||||
Issuance of common stock under employee stock plans | 589 | 589 | |||
Taxes paid related to net share settlement of equity awards | (621) | (621) | |||
Share-based compensation expense | 52,666 | 52,666 | |||
Other comprehensive loss | (457) | (457) | |||
Net loss | (29,870) | (29,870) | |||
Ending balance, common stock (in shares) at Apr. 30, 2023 | 132,912,458 | ||||
Ending balance at Apr. 30, 2023 | $ 507,965 | $ 0 | $ 1,296,364 | $ (788,043) | $ (356) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
Cash flows from operating activities | ||
Net loss | $ (29,870) | $ (70,457) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Share-based compensation expense | 51,779 | 43,900 |
Depreciation and amortization | 6,410 | 6,078 |
Net amortization of premiums (discounts) on investments | (2,028) | (49) |
Amortization of deferred commission costs | 11,429 | 13,077 |
Unrealized foreign currency loss | 381 | 589 |
Non-cash operating lease costs | 3,155 | 3,899 |
Other, net | 872 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 45,746 | 31,489 |
Prepaid expenses and other current assets | (6,981) | (13,103) |
Other long-term assets | (267) | 32 |
Accounts payable | (246) | 5,688 |
Other accrued liabilities | 1,581 | 5,595 |
Accrued compensation and related benefits | (20,552) | (23,790) |
Deferred commissions | (18,701) | (15,895) |
Deferred revenue | (4,452) | 11,761 |
Other long-term liabilities | 210 | 0 |
Operating lease liabilities | (3,895) | (3,867) |
Net cash provided by (used in) operating activities | 34,571 | (5,053) |
Cash flows from investing activities | ||
Purchases of short-term investments | (62,010) | (207,274) |
Maturities of short-term investments | 96,885 | 0 |
Proceeds from liquidation of a long-term investment | 0 | 622 |
Purchases of property and equipment | (853) | (1,691) |
Proceeds from sale of property and equipment | 16 | 94 |
Capitalized internal-use software development costs | (2,397) | (2,323) |
Net cash provided by (used in) investing activities | 31,641 | (210,572) |
Cash flows from financing activities | ||
Proceeds from exercise of stock options | 532 | 1,370 |
Taxes paid related to net share settlement of restricted stock units | (621) | (1,366) |
Proceeds from contributions to Employee Stock Purchase Plan | 5,783 | 6,804 |
Net cash provided by financing activities | 5,694 | 6,808 |
Effects of changes in foreign currency exchange rates on cash, cash equivalents, and restricted cash | (108) | (821) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 71,798 | (209,638) |
Cash, cash equivalents, and restricted cash at beginning of period | 223,757 | 449,680 |
Cash, cash equivalents, and restricted cash at end of period | 295,555 | 240,042 |
Supplemental disclosures | ||
Cash paid for income tax | 69 | 68 |
Accrued purchases of property and equipment, including internal-use software | 503 | 789 |
Share-based compensation expense capitalized in internal-use software development costs | 803 | 748 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 0 | $ 4,464 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 3 Months Ended |
Apr. 30, 2023 | |
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 the enterprise platform for modern work management, enabling teams and organizations of all sizes to plan, capture, manage, automate, and report on work at scale, resulting in more efficient processes and better business outcomes. Customers access their accounts 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, 2023 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, 2023, filed with the SEC on March 22, 2023. The condensed consolidated financial statements include the results of Smartsheet Inc. and its wholly owned subsidiaries, including those located in the United States, the United Kingdom, Germany, Australia, Japan, and Costa Rica. 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, 2023 are not necessarily indicative of results to be expected for the full year ending January 31, 2024, 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 the measurement of fair values of share-based compensation award grants; determination of the amortization period for capitalized sales commission costs; and revenue recognition with respect to the allocation of transaction consideration for the Company’s offerings, among others. The Company completed an assessment of the amortization period for deferred sales commission costs and determined that it should increase the period over which we amortize deferred commissions from three years to four years. This change in accounting estimate was effective August 1, 2022 and is being accounted for prospectively in the condensed consolidated financial statements. For the quarter ended April 30, 2023, the change in amortization period resulted in a benefit to both sales and marketing expense and net loss of approximately 2% of total revenue or $0.04 per basic and diluted share. The effect of this change in estimate is based on the carrying value of deferred commissions included in the Company’s consolidated balance sheets as of July 31, 2022 and those deferred during subsequent periods. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Apr. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies For a summary of the Company’s significant accounting policies refer to Note 2, Summary of Significant Accounting Policies, of our Annual Report on Form 10-K for the fiscal year ended January 31, 2023. 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. Concentrations of risk and significant customers Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash, cash equivalents, short-term investments, and accounts receivable. The Company maintains its cash accounts with financial institutions where deposits, at times, exceed the Federal Deposit Insurance Corporation (“FDIC”) limits. No individual customer represented more than 10% of accounts receivable as of April 30, 2023 or January 31, 2023. No individual customer represented more than 10% of revenue for the three months ended April 30, 2023 or 2022. Recent accounting pronouncements |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Apr. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers During the three months ended April 30, 2023 and 2022, the Company recognized $178.4 million and $131.0 million of subscription revenue, respectively, and $5.7 million and $3.7 million of professional services revenue, respectively, which were included in the deferred revenue balance as of January 31, 2023 and 2022, respectively. As of April 30, 2023, approximately $525.8 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 $518.2 million related to subscription services and $7.6 million related to professional services. Approximately 92% of revenue related to remaining performance obligations is expected to be recognized in the next 12 months. |
Deferred Commissions
Deferred Commissions | 3 Months Ended |
Apr. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Commissions | Revenue from Contracts with Customers During the three months ended April 30, 2023 and 2022, the Company recognized $178.4 million and $131.0 million of subscription revenue, respectively, and $5.7 million and $3.7 million of professional services revenue, respectively, which were included in the deferred revenue balance as of January 31, 2023 and 2022, respectively. As of April 30, 2023, approximately $525.8 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 $518.2 million related to subscription services and $7.6 million related to professional services. Approximately 92% of revenue related to remaining performance obligations is expected to be recognized in the next 12 months. |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Apr. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share The following table presents calculations for basic and diluted net loss per share (in thousands, except per share data): Three Months Ended April 30, 2023 2022 Numerator: Net loss $ (29,870) $ (70,457) Denominator: Weighted-average shares outstanding 132,542 128,519 Net loss per share, basic and diluted $ (0.23) $ (0.55) The following outstanding shares of common stock equivalents as of the periods presented were excluded from the computation of diluted net loss per share for the periods presented because the impact of including them would have been anti-dilutive (in thousands): April 30, 2023 2022 Shares subject to outstanding common stock awards 13,902 11,569 Shares issuable pursuant to the 2018 Employee Stock Purchase Plan 378 216 Total potentially dilutive shares 14,280 11,785 |
Investments
Investments | 3 Months Ended |
Apr. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments All cash equivalents and short-term investments were designated as available-for-sale securities as of April 30, 2023. The following tables present the amortized costs, unrealized gains and losses, and estimated fair values of the Company’s cash equivalents and short-term investments (in thousands): April 30, 2023 Amortized Cost* Unrealized Gains Unrealized Losses Estimated Fair Value Cash equivalents: Money market funds $ 243,011 $ — $ — $ 243,011 Total cash equivalents 243,011 — — 243,011 Short-term investments: Corporate bonds 45,435 49 (29) 45,455 U.S. Treasury securities 48,462 17 (44) 48,435 Commercial paper 57,495 — — 57,495 Agency securities 43,181 38 (11) 43,208 Total short-term investments 194,573 104 (84) 194,593 Total $ 437,584 $ 104 $ (84) $ 437,604 *Excludes interest receivable of $1.3 million, which is included in Prepaid expenses and other current assets on the condensed consolidated balance sheets. January 31, 2023 Amortized Cost* Unrealized Gains Unrealized Losses Estimated Fair Value Cash equivalents: Money market funds $ 137,490 $ — $ — $ 137,490 Agency securities 3,497 — — 3,497 Total cash equivalents 140,987 — — 140,987 Short-term investments: Corporate bonds 66,051 46 (79) 66,018 U.S. Treasury securities 62,520 2 (144) 62,378 Commercial paper 78,454 — — 78,454 Agency securities 26,369 12 (6) 26,375 Total short-term investments 233,394 60 (229) 233,225 Total $ 374,381 $ 60 $ (229) $ 374,212 *Excludes interest receivable of $1.1 million, which is included in Prepaid expenses and other current assets on the condensed consolidated balance sheets. The Company does not intend to sell, nor is it more likely than not that we will be required to sell, any investments in unrealized loss positions before recovery of their amortized cost basis. We did not recognize any credit losses related to our investments during the three months ended April 30, 2023 and 2022. The unrealized losses on our short-term investments were primarily due to unfavorable changes in interest rates subsequent to initial purchase. There were no material realized gains or losses from available-for-sale securities that were reclassified out of accumulated other comprehensive income (loss) during the three months ended April 30, 2023 and 2022. None of the short-term investments held as of April 30, 2023 or January 31, 2023 were in a continuous unrealized loss position for greater than 12 months. The following tables present the contractual maturities of the Company’s short-term investments (in thousands): April 30, 2023 Amortized Cost Estimated Fair Value Due within one year $ 175,472 $ 175,479 Due between one to five years 19,101 19,114 Total $ 194,573 $ 194,593 January 31, 2023 Amortized Cost Estimated Fair Value Due within one year $ 207,487 $ 207,325 Due between one to five years 25,907 25,900 Total $ 233,394 $ 233,225 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 30, 2023 | |
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, 2023 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 243,011 $ — $ — $ 243,011 Total cash equivalents 243,011 — — 243,011 Short-term investments: Corporate bonds — 45,455 — 45,455 U.S. Treasury securities — 48,435 — 48,435 Commercial paper — 57,495 — 57,495 Agency securities — 43,208 — 43,208 Total short-term investments — 194,593 — 194,593 Total assets $ 243,011 $ 194,593 $ — $ 437,604 January 31, 2023 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 137,490 $ — $ — $ 137,490 Agency securities — 3,497 — 3,497 Total cash equivalents 137,490 3,497 — 140,987 Short-term investments: Corporate bonds — 66,018 — 66,018 U.S. Treasury securities — 62,378 — 62,378 Commercial paper — 78,454 — 78,454 Agency securities — 26,375 — 26,375 Total short-term investments — 233,225 — 233,225 Total assets $ 137,490 $ 236,722 $ — $ 374,212 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, 2023 or 2022. Assets and liabilities measured at fair value on a non-recurring basis See Note 8, Business Combinations , and Note 9, Goodwill and Net Intangible Assets , 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, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business Combinations Outfit On September 1, 2022, the Company acquired 100% of the outstanding equity of On Brand Holdings, Inc. and its subsidiaries, collectively doing business as Outfit, pursuant to an Agreement and Plan of Merger. The Company acquired Outfit to enhance Brandfolder’s templating and creative automation solution. We incurred acquisition costs of $0.6 million during the year ended January 31, 2023. The total purchase consideration for the acquisition of Outfit was $20.6 million in cash, net of customary purchase price adjustments. The transaction was accounted for as a business combination and accordingly, the total fair value of purchase consideration was allocated to the tangible and 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. The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands): September 1, 2022 Cash and restricted cash $ 266 Intangible assets 5,190 Goodwill 16,434 Other net tangible assets and liabilities assumed (1,283) Total $ 20,607 The excess purchase price consideration was recorded as goodwill, and is primarily attributable to the acquired assembled workforce and expected synergies with Brandfolder’s product offerings. The goodwill is not deductible for income tax purposes. 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 April 30, 2023 relate to the fair values of intangible assets acquired, certain tangible assets and liabilities acquired, income taxes, and goodwill. The Company expects to finalize the fair value measurements as soon as practicable, but not later than one year from the acquisition date. 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 $ 3,200 5 years 14.7 % Customer relationships 1,990 7 years 14.7 % Total intangible assets $ 5,190 The identified intangible assets, software technology and customer relationships, were valued as follows: Software technology - we valued the finite-lived software technology using the 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 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 assumptions with respect to the future cash flows forecast, base year annual recurring revenue, customer churn rate, and the discount rate. The related software technology amortization expense is recognized over its useful life within cost of revenue in the condensed consolidated statements of operations. The amortization expense related to the customer relationship intangible asset is recognized over its useful life within sales and marketing in the condensed consolidated statements of operations. The weighted-average amortization period of the acquired intangible assets is 5.8 years. We have included the financial results of Outfit in our condensed consolidated financial statements from the date of acquisition. Separate financial results and pro forma financial information for Outfit have not been presented as the effect of this acquisition was not significant to our financial results. |
Goodwill and Net Intangible Ass
Goodwill and Net Intangible Assets | 3 Months Ended |
Apr. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Net Intangible Assets | Goodwill and Net Intangible Assets Changes in the carrying amount of goodwill or measurement period adjustments during the three months ended April 30, 2023 were as follows (in thousands): Goodwill balance as of January 31, 2023 $ 142,415 Effects of foreign currency translation (897) Goodwill balance as of April 30, 2023 $ 141,518 The following table presents the components of net intangible assets (in thousands): April 30, 2023 January 31, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired software technology $ 28,499 $ (15,958) $ 12,541 $ 28,673 $ (14,547) $ 14,126 Acquired customer relationships 34,077 (13,429) 20,648 34,186 (12,265) 21,921 Trade names 4,100 (1,268) 2,832 4,100 (1,157) 2,943 Patents 170 (138) 32 170 (135) 35 Domain name 44 — 44 44 — 44 Total $ 66,890 $ (30,793) $ 36,097 $ 67,173 $ (28,104) $ 39,069 The following table presents the components of acquired intangible assets (dollars in thousands): April 30, 2023 January 31, 2023 Net Carrying Amount Weighted Average Life (Years) Net Carrying Amount Weighted Average Life (Years) Acquired software technology $ 12,541 2.6 $ 14,126 2.8 Acquired customer relationships 20,648 4.5 21,921 4.7 Trade names 2,832 6.4 2,943 6.6 Total $ 36,021 4.0 $ 38,990 4.2 Amortization expense related to intangible assets was $2.7 million and $2.5 million for the three months ended April 30, 2023 and 2022, respectively. As of April 30, 2023, estimated remaining amortization expense for the finite-lived intangible assets by fiscal year is as follows (in thousands): Remainder of Fiscal 2024 $ 8,128 Fiscal 2025 9,635 Fiscal 2026 7,918 Fiscal 2027 5,752 Fiscal 2028 3,455 Thereafter 1,165 Total $ 36,053 |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Apr. 30, 2023 | |
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 2015 Equity Incentive Plan (the “2015 Plan”), and the 2018 Equity Incentive Plan (the “2018 Plan”). Employee stock options are granted with exercise prices at the fair value of the underlying common stock on the grant date, generally vest based on continuous employment over three 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 RSUs are measured based on the grant date fair value of the awards and generally vest based on continuous employment over three 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 September 2020 acquisition. The RSAs are measured based on the grant date fair value of the awards and vest based on continuous employment over three years. The Company issued market-based performance share units (“PSUs”) to certain executives pursuant to the 2018 Plan during the year ended January 31, 2023. The target number of market-based PSUs granted was 251,027. The number of shares that can be earned range from 0% to 200% of the target number of shares, based on the relative growth of the Company’s total shareholder return as compared to the total shareholder return of the S&P Software and Services Select Index. These awards have two separate performance periods. The first tranche of awards has a one year performance period starting on the date of grant and ending on the first anniversary of the date of grant. The second tranche of awards has a two year performance period starting on the date of grant and ending on the second anniversary of the date of grant. These awards also include a service condition and vest on a graded vesting schedule, subject to continuous employment, over a three year period. The fair value of the PSUs granted was determined using a Monte Carlo simulation approach. Stock options The following table includes a summary of the option activity during the three months ended April 30, 2023: Options Outstanding Weighted-Average Exercise Price Outstanding at January 31, 2023 3,819,288 $ 23.42 Granted — — Exercised (81,554) 6.98 Forfeited or canceled (10,125) 67.00 Outstanding at April 30, 2023 3,727,609 23.66 Exercisable at April 30, 2023 3,038,960 16.76 Restricted stock units The following table includes a summary of the RSU activity during the three months ended April 30, 2023: Number of Shares Underlying Outstanding RSUs Weighted-Average Grant-Date Fair Value per RSU Outstanding at January 31, 2023 10,975,157 $ 46.56 Granted 384,396 45.78 Vested (1,001,652) 49.16 Forfeited or canceled (434,590) 47.50 Outstanding at April 30, 2023 9,923,311 46.23 Performance Share Units The following table includes a summary of the PSU activity during the three months ended April 30, 2023: Number of Shares Weighted-Average Grant-Date Fair Value per Share Outstanding at January 31, 2023 251,027 $ 53.34 Granted — — Vested — — Forfeited or canceled — — Outstanding at April 30, 2023 251,027 53.34 Restricted stock awards The following table includes a summary of the RSA activity during the three months ended April 30, 2023: Number of Shares Weighted-Average Grant-Date Fair Value per Share Outstanding at January 31, 2023 19,895 $ 46.93 Granted — — Vested — — Forfeited or canceled — — Outstanding at April 30, 2023 19,895 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 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 January 1 and July 1), with a purchase date following the end of the 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 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. The following table includes a summary of the Company’s shares available for issuance activity under our 2018 Plan and our ESPP during the three months ended April 30, 2023: 2018 Plan 2018 ESPP Balance at January 31, 2023 14,594,290 4,850,775 Authorized 6,592,251 1,318,450 Granted (384,396) Forfeited or canceled 444,715 Balance at April 30, 2023 21,246,860 6,169,225 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, 2023, $7.8 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 sheets. Share-based compensation expense Share-based compensation expense included in the condensed consolidated statements of operations was as follows (in thousands): Three Months Ended April 30, 2023 2022 Cost of subscription revenue $ 3,459 $ 2,611 Cost of professional services revenue 1,910 1,477 Research and development 17,432 15,615 Sales and marketing 19,054 14,745 General and administrative 9,924 9,452 Total share-based compensation expense $ 51,779 $ 43,900 We have excluded $0.9 million and $0.7 million of capitalized software development costs from share-based compensation expense in the three months ended April 30, 2023 and 2022, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 30, 2023 | |
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 valuation allowances on deferred tax assets, U.S. Base Erosion and Anti-Abuse Tax (“BEAT”), state taxes, non-deductible share-based compensation offset by tax credits and Foreign Derived Intangible Income (“FDII”) deductions. The Company recorded a provision for income taxes of $2.4 million and $0.2 million for the three months ended April 30, 2023 and 2022, respectively. The provision is primarily attributable to BEAT, income taxes in foreign jurisdictions and state income taxes. |
Leases
Leases | 3 Months Ended |
Apr. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases primarily related to corporate offices and certain equipment. Our leases have remaining lease terms of less than one year to six years, some of which include options to extend the leases for up to five years. The components of lease expense recorded in the condensed consolidated statements of operations were as follows (in thousands): Three Months Ended April 30, 2023 2022 Operating lease cost $ 3,981 $ 4,879 Short-term lease cost 180 129 Variable lease cost 851 567 Sublease income (547) — Total lease costs $ 4,465 $ 5,575 Other information related to operating leases was as follows (dollars in thousands): Three Months Ended April 30, 2023 2022 Supplemental cash flow information: Cash paid for amounts included in the measurement of operating lease liabilities $ 4,720 $ 4,652 Right-of-use assets obtained in exchange for new operating lease liabilities — 4,464 Other supplemental information: Weighted-average remaining lease term (in years) 4.3 4.9 Weighted-average discount rate 5.2 % 4.9 % As of April 30, 2023, remaining maturities of lease liabilities were as follows (in thousands): Operating Leases Remainder of Fiscal 2024 $ 14,939 Fiscal 2025 16,986 Fiscal 2026 14,519 Fiscal 2027 10,831 Fiscal 2028 6,041 Thereafter 6,236 Total lease payments 69,552 Less: imputed interest (6,881) Total $ 62,671 As of April 30, 2023, the future total minimum sublease payments to be received were as follows (in thousands): Sublease Receipts Remainder of Fiscal 2024 $ 1,750 Fiscal 2025 2,396 Fiscal 2026 1,986 Fiscal 2027 700 Thereafter — Total $ 6,832 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal matters An indemnification claim was 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. In December 2021, we paid $10.0 million as part of an overall settlement of these matters. We do not expect any additional losses related to this that would have a material impact on our financial position, results of operations, or cash flows. During the year ended January 31, 2023, we recovered $4.5 million related to insurance coverage of this claim. In February 2023, we settled an additional insurance reimbursement claim related to this case. As a result of this settlement, we recorded an insurance reimbursement receivable of $3.9 million in prepaid and other current assets in our condensed consolidated balance sheet as of January 31, 2023. The $3.9 million was collected during the three months ended April 30, 2023. The impact of these insurance recoveries was included in general and administrative expenses in our condensed consolidated statement of operations during the year ended January 31, 2023. |
Geographic Information
Geographic Information | 3 Months Ended |
Apr. 30, 2023 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information Revenue Revenue by geographic location is determined by the location of the Company’s customers. The following table sets forth revenue by geographic area (in thousands): Three Months Ended April 30, 2023 2022 United States $ 185,595 $ 139,694 EMEA 17,724 15,285 Asia Pacific 8,207 6,534 Americas other than the United States 8,360 6,797 Total $ 219,886 $ 168,310 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, 2023 January 31, 2023 United States $ 56,793 $ 60,246 EMEA 4,953 5,583 Asia Pacific 4,300 4,510 Americas other than the United States 445 274 Total $ 66,491 $ 70,613 |
Supplemental Consolidated Finan
Supplemental Consolidated Financial Statement Information | 3 Months Ended |
Apr. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Consolidated Financial Statement Information | Supplemental Consolidated Financial Statement Information Prepaid and other current assets Prepaid expenses and other current assets consisted of the following (in thousands): April 30, 2023 January 31, 2023 Prepaid expenses $ 56,665 $ 45,877 Other current assets 11,360 9,186 Total prepaid expense and other current assets $ 68,025 $ 55,063 Restricted cash Restricted cash was $0.6 million as of April 30, 2023 and January 31, 2023, primarily related to Australian employee contributions to the Company’s 2018 Employee Stock Purchase Plan. 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, 2023 2022 Cash and cash equivalents $ 294,946 $ 239,683 Restricted cash included in prepaid expenses and other current assets 420 343 Restricted cash 189 16 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows $ 295,555 $ 240,042 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 30, 2023 | |
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, 2023 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, 2023, filed with the SEC on March 22, 2023. The condensed consolidated financial statements include the results of Smartsheet Inc. and its wholly owned subsidiaries, including those located in the United States, the United Kingdom, Germany, Australia, Japan, and Costa Rica. 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, 2023 are not necessarily indicative of results to be expected for the full year ending January 31, 2024, 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 the measurement of fair values of share-based compensation award grants; determination of the amortization period for capitalized sales commission costs; and revenue recognition with respect to the allocation of transaction consideration for the Company’s offerings, among others. The Company completed an assessment of the amortization period for deferred sales commission costs and determined that it should increase the period over which we amortize deferred commissions from three years to four years. This change in accounting estimate was effective August 1, 2022 and is being accounted for prospectively in the condensed consolidated financial statements. For the quarter ended April 30, 2023, the change in amortization period resulted in a benefit to both sales and marketing expense and net loss of approximately 2% of total revenue or $0.04 per basic and diluted share. The effect of this change in estimate is based on the carrying value of deferred commissions included in the Company’s consolidated balance sheets as of July 31, 2022 and those deferred during subsequent periods. |
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. |
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, short-term investments, and accounts receivable. The Company maintains its cash accounts with financial institutions where deposits, at times, exceed the Federal Deposit Insurance Corporation (“FDIC”) limits. |
Recent accounting pronouncements | Recent accounting pronouncementsThere have been no recent accounting pronouncements, changes in accounting pronouncements, or recently adopted accounting guidance during the three months ended April 30, 2023 that have had a material impact on our condensed consolidated financial statements. |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Apr. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents calculations for basic and diluted net loss per share (in thousands, except per share data): Three Months Ended April 30, 2023 2022 Numerator: Net loss $ (29,870) $ (70,457) Denominator: Weighted-average shares outstanding 132,542 128,519 Net loss per share, basic and diluted $ (0.23) $ (0.55) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following outstanding shares of common stock equivalents as of the periods presented were excluded from the computation of diluted net loss per share for the periods presented because the impact of including them would have been anti-dilutive (in thousands): April 30, 2023 2022 Shares subject to outstanding common stock awards 13,902 11,569 Shares issuable pursuant to the 2018 Employee Stock Purchase Plan 378 216 Total potentially dilutive shares 14,280 11,785 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Apr. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Unrealized Gains and Losses, and Estimated Fair Values of the Company’s Investments | The following tables present the amortized costs, unrealized gains and losses, and estimated fair values of the Company’s cash equivalents and short-term investments (in thousands): April 30, 2023 Amortized Cost* Unrealized Gains Unrealized Losses Estimated Fair Value Cash equivalents: Money market funds $ 243,011 $ — $ — $ 243,011 Total cash equivalents 243,011 — — 243,011 Short-term investments: Corporate bonds 45,435 49 (29) 45,455 U.S. Treasury securities 48,462 17 (44) 48,435 Commercial paper 57,495 — — 57,495 Agency securities 43,181 38 (11) 43,208 Total short-term investments 194,573 104 (84) 194,593 Total $ 437,584 $ 104 $ (84) $ 437,604 *Excludes interest receivable of $1.3 million, which is included in Prepaid expenses and other current assets on the condensed consolidated balance sheets. January 31, 2023 Amortized Cost* Unrealized Gains Unrealized Losses Estimated Fair Value Cash equivalents: Money market funds $ 137,490 $ — $ — $ 137,490 Agency securities 3,497 — — 3,497 Total cash equivalents 140,987 — — 140,987 Short-term investments: Corporate bonds 66,051 46 (79) 66,018 U.S. Treasury securities 62,520 2 (144) 62,378 Commercial paper 78,454 — — 78,454 Agency securities 26,369 12 (6) 26,375 Total short-term investments 233,394 60 (229) 233,225 Total $ 374,381 $ 60 $ (229) $ 374,212 *Excludes interest receivable of $1.1 million, which is included in Prepaid expenses and other current assets on the condensed consolidated balance sheets. |
Schedule of Maturities of the Company’s Short-term Investments | The following tables present the contractual maturities of the Company’s short-term investments (in thousands): April 30, 2023 Amortized Cost Estimated Fair Value Due within one year $ 175,472 $ 175,479 Due between one to five years 19,101 19,114 Total $ 194,573 $ 194,593 January 31, 2023 Amortized Cost Estimated Fair Value Due within one year $ 207,487 $ 207,325 Due between one to five years 25,907 25,900 Total $ 233,394 $ 233,225 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 30, 2023 | |
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, 2023 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 243,011 $ — $ — $ 243,011 Total cash equivalents 243,011 — — 243,011 Short-term investments: Corporate bonds — 45,455 — 45,455 U.S. Treasury securities — 48,435 — 48,435 Commercial paper — 57,495 — 57,495 Agency securities — 43,208 — 43,208 Total short-term investments — 194,593 — 194,593 Total assets $ 243,011 $ 194,593 $ — $ 437,604 January 31, 2023 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 137,490 $ — $ — $ 137,490 Agency securities — 3,497 — 3,497 Total cash equivalents 137,490 3,497 — 140,987 Short-term investments: Corporate bonds — 66,018 — 66,018 U.S. Treasury securities — 62,378 — 62,378 Commercial paper — 78,454 — 78,454 Agency securities — 26,375 — 26,375 Total short-term investments — 233,225 — 233,225 Total assets $ 137,490 $ 236,722 $ — $ 374,212 |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Apr. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands): September 1, 2022 Cash and restricted cash $ 266 Intangible assets 5,190 Goodwill 16,434 Other net tangible assets and liabilities assumed (1,283) Total $ 20,607 |
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 $ 3,200 5 years 14.7 % Customer relationships 1,990 7 years 14.7 % Total intangible assets $ 5,190 |
Goodwill and Net Intangible A_2
Goodwill and Net Intangible Assets (Tables) | 3 Months Ended |
Apr. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill or measurement period adjustments during the three months ended April 30, 2023 were as follows (in thousands): Goodwill balance as of January 31, 2023 $ 142,415 Effects of foreign currency translation (897) Goodwill balance as of April 30, 2023 $ 141,518 |
Schedule of Finite-Lived Intangible Assets | The following table presents the components of net intangible assets (in thousands): April 30, 2023 January 31, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired software technology $ 28,499 $ (15,958) $ 12,541 $ 28,673 $ (14,547) $ 14,126 Acquired customer relationships 34,077 (13,429) 20,648 34,186 (12,265) 21,921 Trade names 4,100 (1,268) 2,832 4,100 (1,157) 2,943 Patents 170 (138) 32 170 (135) 35 Domain name 44 — 44 44 — 44 Total $ 66,890 $ (30,793) $ 36,097 $ 67,173 $ (28,104) $ 39,069 The following table presents the components of acquired intangible assets (dollars in thousands): April 30, 2023 January 31, 2023 Net Carrying Amount Weighted Average Life (Years) Net Carrying Amount Weighted Average Life (Years) Acquired software technology $ 12,541 2.6 $ 14,126 2.8 Acquired customer relationships 20,648 4.5 21,921 4.7 Trade names 2,832 6.4 2,943 6.6 Total $ 36,021 4.0 $ 38,990 4.2 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of April 30, 2023, estimated remaining amortization expense for the finite-lived intangible assets by fiscal year is as follows (in thousands): Remainder of Fiscal 2024 $ 8,128 Fiscal 2025 9,635 Fiscal 2026 7,918 Fiscal 2027 5,752 Fiscal 2028 3,455 Thereafter 1,165 Total $ 36,053 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Apr. 30, 2023 | |
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, 2023: Options Outstanding Weighted-Average Exercise Price Outstanding at January 31, 2023 3,819,288 $ 23.42 Granted — — Exercised (81,554) 6.98 Forfeited or canceled (10,125) 67.00 Outstanding at April 30, 2023 3,727,609 23.66 Exercisable at April 30, 2023 3,038,960 16.76 |
Schedule of Restricted Stock Units Award Activity | The following table includes a summary of the RSU activity during the three months ended April 30, 2023: Number of Shares Underlying Outstanding RSUs Weighted-Average Grant-Date Fair Value per RSU Outstanding at January 31, 2023 10,975,157 $ 46.56 Granted 384,396 45.78 Vested (1,001,652) 49.16 Forfeited or canceled (434,590) 47.50 Outstanding at April 30, 2023 9,923,311 46.23 |
Schedule of Performance Share Units Activity | The following table includes a summary of the PSU activity during the three months ended April 30, 2023: Number of Shares Weighted-Average Grant-Date Fair Value per Share Outstanding at January 31, 2023 251,027 $ 53.34 Granted — — Vested — — Forfeited or canceled — — Outstanding at April 30, 2023 251,027 53.34 |
Schedule of Nonvested Restricted Stock Shares Activity | The following table includes a summary of the RSA activity during the three months ended April 30, 2023: Number of Shares Weighted-Average Grant-Date Fair Value per Share Outstanding at January 31, 2023 19,895 $ 46.93 Granted — — Vested — — Forfeited or canceled — — Outstanding at April 30, 2023 19,895 46.93 |
Schedule of Shares Available for Issuance Under ESPP | The following table includes a summary of the Company’s shares available for issuance activity under our 2018 Plan and our ESPP during the three months ended April 30, 2023: 2018 Plan 2018 ESPP Balance at January 31, 2023 14,594,290 4,850,775 Authorized 6,592,251 1,318,450 Granted (384,396) Forfeited or canceled 444,715 Balance at April 30, 2023 21,246,860 6,169,225 |
Schedule of Share-based Compensation Expense | Share-based compensation expense included in the condensed consolidated statements of operations was as follows (in thousands): Three Months Ended April 30, 2023 2022 Cost of subscription revenue $ 3,459 $ 2,611 Cost of professional services revenue 1,910 1,477 Research and development 17,432 15,615 Sales and marketing 19,054 14,745 General and administrative 9,924 9,452 Total share-based compensation expense $ 51,779 $ 43,900 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Apr. 30, 2023 | |
Leases [Abstract] | |
Schedule of Lease Cost | The components of lease expense recorded in the condensed consolidated statements of operations were as follows (in thousands): Three Months Ended April 30, 2023 2022 Operating lease cost $ 3,981 $ 4,879 Short-term lease cost 180 129 Variable lease cost 851 567 Sublease income (547) — Total lease costs $ 4,465 $ 5,575 Other information related to operating leases was as follows (dollars in thousands): Three Months Ended April 30, 2023 2022 Supplemental cash flow information: Cash paid for amounts included in the measurement of operating lease liabilities $ 4,720 $ 4,652 Right-of-use assets obtained in exchange for new operating lease liabilities — 4,464 Other supplemental information: Weighted-average remaining lease term (in years) 4.3 4.9 Weighted-average discount rate 5.2 % 4.9 % |
Schedule of Future Minimum Rental Payments for Operating Leases | As of April 30, 2023, remaining maturities of lease liabilities were as follows (in thousands): Operating Leases Remainder of Fiscal 2024 $ 14,939 Fiscal 2025 16,986 Fiscal 2026 14,519 Fiscal 2027 10,831 Fiscal 2028 6,041 Thereafter 6,236 Total lease payments 69,552 Less: imputed interest (6,881) Total $ 62,671 |
Lessor, Operating Lease, Payment to be Received, Fiscal Year Maturity | As of April 30, 2023, the future total minimum sublease payments to be received were as follows (in thousands): Sublease Receipts Remainder of Fiscal 2024 $ 1,750 Fiscal 2025 2,396 Fiscal 2026 1,986 Fiscal 2027 700 Thereafter — Total $ 6,832 |
Geographic Information (Tables)
Geographic Information (Tables) | 3 Months Ended |
Apr. 30, 2023 | |
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 by geographic area (in thousands): Three Months Ended April 30, 2023 2022 United States $ 185,595 $ 139,694 EMEA 17,724 15,285 Asia Pacific 8,207 6,534 Americas other than the United States 8,360 6,797 Total $ 219,886 $ 168,310 |
Schedule of 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, 2023 January 31, 2023 United States $ 56,793 $ 60,246 EMEA 4,953 5,583 Asia Pacific 4,300 4,510 Americas other than the United States 445 274 Total $ 66,491 $ 70,613 |
Supplemental Consolidated Fin_2
Supplemental Consolidated Financial Statement Information (Tables) | 3 Months Ended |
Apr. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): April 30, 2023 January 31, 2023 Prepaid expenses $ 56,665 $ 45,877 Other current assets 11,360 9,186 Total prepaid expense and other current assets $ 68,025 $ 55,063 |
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, 2023 2022 Cash and cash equivalents $ 294,946 $ 239,683 Restricted cash included in prepaid expenses and other current assets 420 343 Restricted cash 189 16 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows $ 295,555 $ 240,042 |
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, 2023 2022 Cash and cash equivalents $ 294,946 $ 239,683 Restricted cash included in prepaid expenses and other current assets 420 343 Restricted cash 189 16 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows $ 295,555 $ 240,042 |
Overview and Basis of Present_2
Overview and Basis of Presentation (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | Jan. 31, 2023 | |
Change in Accounting Estimate [Line Items] | ||||
Deferred commissions amortized period | 3 years | 4 years | ||
Benefit to net income per share, basic (in dollars per share) | $ (0.23) | $ (0.55) | ||
Benefit to net income per share, diluted (in dollars per share) | $ (0.23) | $ (0.55) | ||
Deferred Commissions, Amortization Period | ||||
Change in Accounting Estimate [Line Items] | ||||
Total revenue (in percent) | 2% | |||
Benefit to net income per share, basic (in dollars per share) | $ 0.04 | |||
Benefit to net income per share, diluted (in dollars per share) | $ 0.04 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) | 3 Months Ended |
Apr. 30, 2023 segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers - Deferred Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
Revenue from External Customer [Line Items] | ||
Deferred revenue | $ 525.8 | |
Subscription | ||
Revenue from External Customer [Line Items] | ||
Revenue recognized included in deferred revenue | 178.4 | $ 131 |
Deferred revenue | 518.2 | |
Professional services | ||
Revenue from External Customer [Line Items] | ||
Revenue recognized included in deferred revenue | 5.7 | $ 3.7 |
Deferred revenue | $ 7.6 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Revenue Recognition (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-05-01 | Apr. 30, 2023 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percentage of revenue related to remaining performance obligations | 92% |
Period of expected timing of satisfaction related to remaining performance obligations | 12 months |
Deferred Commissions (Details)
Deferred Commissions (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Apr. 30, 2023 | Apr. 30, 2022 | Jan. 31, 2023 | Aug. 01, 2022 | Jul. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |||||
Deferred commissions | $ 129,058 | $ 121,785 | |||
Amortization of deferred commission costs | $ 11,400 | $ 13,100 | |||
Deferred commissions amortized period | 4 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 | |
Apr. 30, 2023 | Apr. 30, 2022 | |
Numerator: | ||
Net loss | $ (29,870) | $ (70,457) |
Denominator: | ||
Weighted-average shares outstanding, basic (in shares) | 132,542 | 128,519 |
Weighted-average shares outstanding, diluted (in shares) | 132,542 | 128,519 |
Net loss per share, basic (in dollars per share) | $ (0.23) | $ (0.55) |
Net loss per share, diluted (in dollars per share) | $ (0.23) | $ (0.55) |
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, 2023 | Apr. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive shares | 14,280 | 11,785 |
Shares subject to outstanding common stock awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive shares | 13,902 | 11,569 |
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 | 378 | 216 |
Investments - Schedule of Unrea
Investments - Schedule of Unrealized Gains and Losses, and Estimated Fair Values of the Company’s Investments (Details) - USD ($) $ in Thousands | Apr. 30, 2023 | Jan. 31, 2023 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Total | $ 437,584 | $ 374,381 |
Unrealized Gains | 104 | 60 |
Unrealized Losses | (84) | (229) |
Estimated Fair Value | 437,604 | 374,212 |
Interest receivable | 1,300 | 1,100 |
Money market funds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total | 243,011 | 137,490 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | 243,011 | 137,490 |
Agency securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total | 3,497 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Estimated Fair Value | 3,497 | |
Total cash equivalents | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total | 243,011 | 140,987 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | 243,011 | 140,987 |
Corporate bonds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total | 45,435 | 66,051 |
Unrealized Gains | 49 | 46 |
Unrealized Losses | (29) | (79) |
Estimated Fair Value | 45,455 | 66,018 |
U.S. Treasury securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total | 48,462 | 62,520 |
Unrealized Gains | 17 | 2 |
Unrealized Losses | (44) | (144) |
Estimated Fair Value | 48,435 | 62,378 |
Commercial paper | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total | 57,495 | 78,454 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | 57,495 | 78,454 |
Agency securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total | 43,181 | 26,369 |
Unrealized Gains | 38 | 12 |
Unrealized Losses | (11) | (6) |
Estimated Fair Value | 43,208 | 26,375 |
Total short-term investments | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total | 194,573 | 233,394 |
Unrealized Gains | 104 | 60 |
Unrealized Losses | (84) | (229) |
Estimated Fair Value | $ 194,593 | $ 233,225 |
Investments - Schedule of Matur
Investments - Schedule of Maturities of the Company’s Short-term Investments (Details) - USD ($) $ in Thousands | Apr. 30, 2023 | Jan. 31, 2023 |
Amortized Cost | ||
Total | $ 437,584 | $ 374,381 |
Estimated Fair Value | ||
Total | 437,604 | 374,212 |
Total short-term investments | ||
Amortized Cost | ||
Due within one year | 175,472 | 207,487 |
Due between one to five years | 19,101 | 25,907 |
Total | 194,573 | 233,394 |
Estimated Fair Value | ||
Due within one year | 175,479 | 207,325 |
Due between one to five years | 19,114 | 25,900 |
Total | $ 194,593 | $ 233,225 |
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, 2023 | Jan. 31, 2023 |
Cash equivalents: | ||
Cash equivalents: | $ 243,011 | $ 140,987 |
Short-term investments: | 194,593 | 233,225 |
Total assets | 437,604 | 374,212 |
Corporate bonds | ||
Cash equivalents: | ||
Short-term investments: | 45,455 | 66,018 |
U.S. Treasury securities | ||
Cash equivalents: | ||
Short-term investments: | 48,435 | 62,378 |
Commercial paper | ||
Cash equivalents: | ||
Short-term investments: | 57,495 | 78,454 |
Agency securities | ||
Cash equivalents: | ||
Short-term investments: | 43,208 | 26,375 |
Money market funds | ||
Cash equivalents: | ||
Cash equivalents: | 243,011 | 137,490 |
Agency securities | ||
Cash equivalents: | ||
Cash equivalents: | 3,497 | |
Level 1 | ||
Cash equivalents: | ||
Cash equivalents: | 243,011 | 137,490 |
Short-term investments: | 0 | 0 |
Total assets | 243,011 | 137,490 |
Level 1 | Corporate bonds | ||
Cash equivalents: | ||
Short-term investments: | 0 | 0 |
Level 1 | U.S. Treasury securities | ||
Cash equivalents: | ||
Short-term investments: | 0 | 0 |
Level 1 | Commercial paper | ||
Cash equivalents: | ||
Short-term investments: | 0 | 0 |
Level 1 | Agency securities | ||
Cash equivalents: | ||
Short-term investments: | 0 | 0 |
Level 1 | Money market funds | ||
Cash equivalents: | ||
Cash equivalents: | 243,011 | 137,490 |
Level 1 | Agency securities | ||
Cash equivalents: | ||
Cash equivalents: | 0 | |
Level 2 | ||
Cash equivalents: | ||
Cash equivalents: | 0 | 3,497 |
Short-term investments: | 194,593 | 233,225 |
Total assets | 194,593 | 236,722 |
Level 2 | Corporate bonds | ||
Cash equivalents: | ||
Short-term investments: | 45,455 | 66,018 |
Level 2 | U.S. Treasury securities | ||
Cash equivalents: | ||
Short-term investments: | 48,435 | 62,378 |
Level 2 | Commercial paper | ||
Cash equivalents: | ||
Short-term investments: | 57,495 | 78,454 |
Level 2 | Agency securities | ||
Cash equivalents: | ||
Short-term investments: | 43,208 | 26,375 |
Level 2 | Money market funds | ||
Cash equivalents: | ||
Cash equivalents: | 0 | 0 |
Level 2 | Agency securities | ||
Cash equivalents: | ||
Cash equivalents: | 3,497 | |
Level 3 | ||
Cash equivalents: | ||
Cash equivalents: | 0 | 0 |
Short-term investments: | 0 | 0 |
Total assets | 0 | 0 |
Level 3 | Corporate bonds | ||
Cash equivalents: | ||
Short-term investments: | 0 | 0 |
Level 3 | U.S. Treasury securities | ||
Cash equivalents: | ||
Short-term investments: | 0 | 0 |
Level 3 | Commercial paper | ||
Cash equivalents: | ||
Short-term investments: | 0 | 0 |
Level 3 | Agency securities | ||
Cash equivalents: | ||
Short-term investments: | 0 | 0 |
Level 3 | Money market funds | ||
Cash equivalents: | ||
Cash equivalents: | $ 0 | 0 |
Level 3 | Agency securities | ||
Cash equivalents: | ||
Cash equivalents: | $ 0 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - On Brand Holdings Inc. - USD ($) $ in Millions | Sep. 01, 2022 | Jan. 31, 2023 |
Business Acquisition [Line Items] | ||
Outstanding equity acquired (percentage) | 100% | |
Transaction costs | $ 0.6 | |
Consideration transferred | $ 20.6 | |
Weighted average amortization period | 5 years 9 months 18 days |
Business Combinations - Fair Va
Business Combinations - Fair Value of Assets and Liabilities Assumed (Details) - USD ($) $ in Thousands | Apr. 30, 2023 | Jan. 31, 2023 | Sep. 01, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 141,518 | $ 142,415 | |
On Brand Holdings Inc. | |||
Business Acquisition [Line Items] | |||
Cash and restricted cash | $ 266 | ||
Intangible assets | 5,190 | ||
Goodwill | 16,434 | ||
Other net tangible assets and liabilities assumed | (1,283) | ||
Total | $ 20,607 |
Business Combinations - Intangi
Business Combinations - Intangible Assets Acquired (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 01, 2022 | Apr. 30, 2023 | Jan. 31, 2023 | |
Business Acquisition [Line Items] | |||
Expected Useful Life | 4 years | 4 years 2 months 12 days | |
On Brand Holdings Inc. | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 5,190 | ||
Software technology | |||
Business Acquisition [Line Items] | |||
Expected Useful Life | 2 years 7 months 6 days | 2 years 9 months 18 days | |
Software technology | On Brand Holdings Inc. | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 3,200 | ||
Expected Useful Life | 5 years | ||
Discount Rate | 14.70% | ||
Customer relationships | |||
Business Acquisition [Line Items] | |||
Expected Useful Life | 4 years 6 months | 4 years 8 months 12 days | |
Customer relationships | On Brand Holdings Inc. | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 1,990 | ||
Expected Useful Life | 7 years | ||
Discount Rate | 14.70% |
Goodwill and Net Intangible A_3
Goodwill and Net Intangible Assets - Changes in Goodwill (Details) $ in Thousands | 3 Months Ended |
Apr. 30, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill balance as of January 31, 2023 | $ 142,415 |
Effects of foreign currency translation | (897) |
Goodwill balance as of April 30, 2023 | $ 141,518 |
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, 2023 | Jan. 31, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 66,890 | $ 67,173 |
Accumulated Amortization | (30,793) | (28,104) |
Net Carrying Amount | 36,097 | 39,069 |
Net Carrying Amount | $ 36,021 | $ 38,990 |
Weighted Average Life (Years) | 4 years | 4 years 2 months 12 days |
Acquired software technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 28,499 | $ 28,673 |
Accumulated Amortization | (15,958) | (14,547) |
Net Carrying Amount | 12,541 | 14,126 |
Net Carrying Amount | $ 12,541 | $ 14,126 |
Weighted Average Life (Years) | 2 years 7 months 6 days | 2 years 9 months 18 days |
Acquired customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 34,077 | $ 34,186 |
Accumulated Amortization | (13,429) | (12,265) |
Net Carrying Amount | 20,648 | 21,921 |
Net Carrying Amount | $ 20,648 | $ 21,921 |
Weighted Average Life (Years) | 4 years 6 months | 4 years 8 months 12 days |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 4,100 | $ 4,100 |
Accumulated Amortization | (1,268) | (1,157) |
Net Carrying Amount | 2,832 | 2,943 |
Net Carrying Amount | $ 2,832 | $ 2,943 |
Weighted Average Life (Years) | 6 years 4 months 24 days | 6 years 7 months 6 days |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 170 | $ 170 |
Accumulated Amortization | (138) | (135) |
Net Carrying Amount | 32 | 35 |
Domain name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 44 | 44 |
Accumulated Amortization | 0 | 0 |
Net Carrying Amount | $ 44 | $ 44 |
Goodwill and Net Intangible A_5
Goodwill and Net Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 2.7 | $ 2.5 |
Goodwill and Net Intangible A_6
Goodwill and Net Intangible Assets - Estimated Remaining Amortization Expense (Details) $ in Thousands | Apr. 30, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of Fiscal 2024 | $ 8,128 |
Fiscal 2025 | 9,635 |
Fiscal 2026 | 7,918 |
Fiscal 2027 | 5,752 |
Fiscal 2028 | 3,455 |
Thereafter | 1,165 |
Total | $ 36,053 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | Jan. 31, 2023 | |
Share-based compensation | |||
Accrued compensation and related benefits | $ 53,106 | $ 68,347 | |
Capitalized software development costs | $ 900 | $ 700 | |
2018 ESPP | |||
Share-based compensation | |||
Granted (in shares) | |||
Allowable payroll deduction as a percent of base cash compensation | 15% | ||
Offering period (in months) | 6 months | ||
Purchase price percent | 85% | ||
Maximum number of shares authorized (in shares) | 6,169,225 | 4,850,775 | |
Accrued compensation and related benefits | $ 7,800 | ||
2018 ESPP | Common Class A | |||
Share-based compensation | |||
Period in which shares authorized increase | 10 years | ||
2018 ESPP | Common Class A and B | |||
Share-based compensation | |||
Percent of shares outstanding | 1% | ||
Maximum | 2018 ESPP | Common Class A | |||
Share-based compensation | |||
Maximum number of shares authorized (in shares) | 20,400,000 | ||
Stock Option | |||
Share-based compensation | |||
Expiration period | 10 years | ||
Stock Option | Minimum | |||
Share-based compensation | |||
Vesting period | 3 years | ||
Stock Option | Maximum | |||
Share-based compensation | |||
Vesting period | 4 years | ||
RSUs | |||
Share-based compensation | |||
Granted (in shares) | 384,396 | ||
RSUs | Minimum | |||
Share-based compensation | |||
Vesting period | 3 years | ||
RSUs | Maximum | |||
Share-based compensation | |||
Vesting period | 4 years | ||
RSAs | |||
Share-based compensation | |||
Vesting period | 3 years | ||
Performance Shares | |||
Share-based compensation | |||
Vesting period | 3 years | ||
Granted (in shares) | 0 | 251,027 | |
Performance Shares | Share-Based Payment Arrangement, Tranche One | |||
Share-based compensation | |||
Vesting period | 1 year | ||
Performance Shares | Share-Based Payment Arrangement, Tranche Two | |||
Share-based compensation | |||
Vesting period | 2 years | ||
Performance Shares | Minimum | |||
Share-based compensation | |||
Percentage of target number of shares | 0% | ||
Performance Shares | Maximum | |||
Share-based compensation | |||
Percentage of target number of shares | 200% |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Options (Details) - Stock Option | 3 Months Ended |
Apr. 30, 2023 $ / shares shares | |
Options Outstanding | |
Outstanding beginning balance (in shares) | shares | 3,819,288 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | (81,554) |
Forfeited or canceled (in shares) | shares | (10,125) |
Outstanding ending balance (in shares) | shares | 3,727,609 |
Exercisable (in shares) | shares | 3,038,960 |
Weighted-Average Exercise Price | |
Outstanding beginning balance (in dollars per share) | $ / shares | $ 23.42 |
Granted (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 6.98 |
Forfeited or canceled (in dollars per share) | $ / shares | 67 |
Outstanding ending balance (in dollars per share) | $ / shares | 23.66 |
Exercisable (in dollars per share) | $ / shares | $ 16.76 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Units (Details) - RSUs | 3 Months Ended |
Apr. 30, 2023 $ / shares shares | |
Number of Shares Underlying Outstanding RSUs | |
Outstanding beginning balance (in shares) | shares | 10,975,157 |
Granted (in shares) | shares | 384,396 |
Vested (in shares) | shares | (1,001,652) |
Forfeited or canceled (in shares) | shares | (434,590) |
Outstanding ending balance (in shares) | shares | 9,923,311 |
Weighted-Average Grant-Date Fair Value per RSU | |
Outstanding beginning balance (in dollars per share) | $ / shares | $ 46.56 |
Granted (in dollars per share) | $ / shares | 45.78 |
Vested (in dollars per share) | $ / shares | 49.16 |
Forfeited or canceled (in dollars per share) | $ / shares | 47.50 |
Outstanding ending balance (in dollars per share) | $ / shares | $ 46.23 |
Share-Based Compensation - Perf
Share-Based Compensation - Performance Share Unit Activity (Details) - Performance Shares - $ / shares | 3 Months Ended | 12 Months Ended |
Apr. 30, 2023 | Jan. 31, 2023 | |
Number of Shares Underlying Outstanding RSUs | ||
Outstanding beginning balance (in shares) | 251,027 | |
Granted (in shares) | 0 | 251,027 |
Vested (in shares) | 0 | |
Forfeited or canceled (in shares) | 0 | |
Outstanding ending balance (in shares) | 251,027 | 251,027 |
Weighted-Average Grant-Date Fair Value per RSU | ||
Outstanding beginning balance (in dollars per share) | $ 53.34 | |
Granted (in dollars per share) | 0 | |
Vested (in dollars per share) | 0 | |
Forfeited or canceled (in dollars per share) | 0 | |
Outstanding ending balance (in dollars per share) | $ 53.34 | $ 53.34 |
Share-Based Compensation - Re_2
Share-Based Compensation - Restricted Stock Awards (Details) - Restricted Stock | 3 Months Ended |
Apr. 30, 2023 $ / shares shares | |
Number of Shares | |
Outstanding beginning balance (in shares) | shares | 19,895 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | 0 |
Forfeited or canceled (in shares) | shares | 0 |
Outstanding ending balance (in shares) | shares | 19,895 |
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 | 0 |
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, 2023 shares | |
2018 Plan | |
Share-based compensation | |
Balance at beginning of period (in shares) | 14,594,290 |
Authorized (in shares) | 6,592,251 |
Granted (in shares) | (384,396) |
Forfeited or canceled (in shares) | 444,715 |
Balance at end of period (in shares) | 21,246,860 |
2018 ESPP | |
Share-based compensation | |
Balance at beginning of period (in shares) | 4,850,775 |
Authorized (in shares) | 1,318,450 |
Granted (in shares) | |
Forfeited or canceled (in shares) | |
Balance at end of period (in shares) | 6,169,225 |
Share-Based Compensation - Shar
Share-Based Compensation - Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total share-based compensation expense | $ 51,779 | $ 43,900 |
Cost of subscription revenue | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total share-based compensation expense | 3,459 | 2,611 |
Cost of professional services revenue | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total share-based compensation expense | 1,910 | 1,477 |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total share-based compensation expense | 17,432 | 15,615 |
Sales and marketing | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total share-based compensation expense | 19,054 | 14,745 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total share-based compensation expense | $ 9,924 | $ 9,452 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income tax provision | $ 2,436 | $ 215 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 3 Months Ended |
Apr. 30, 2023 | |
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 | 6 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 3,981 | $ 4,879 |
Short-term lease cost | 180 | 129 |
Variable lease cost | 851 | 567 |
Sublease income | (547) | 0 |
Total lease costs | $ 4,465 | $ 5,575 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
Supplemental cash flow information: | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 4,720 | $ 4,652 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 0 | $ 4,464 |
Weighted Average Remaining Lease Term [Abstract] | ||
Weighted-average remaining lease term (in years) | 4 years 3 months 18 days | 4 years 10 months 24 days |
Weighted Average Discount Rate [Abstract] | ||
Weighted-average discount rate | 5.20% | 4.90% |
Leases - Schedule of Future Pay
Leases - Schedule of Future Payments for Operating and Sublease Receipts (Details) $ in Thousands | Apr. 30, 2023 USD ($) |
Operating Leases | |
Remainder of Fiscal 2024 | $ 14,939 |
Fiscal 2025 | 16,986 |
Fiscal 2026 | 14,519 |
Fiscal 2027 | 10,831 |
Fiscal 2028 | 6,041 |
Thereafter | 6,236 |
Total lease payments | 69,552 |
Less: imputed interest | (6,881) |
Total | 62,671 |
Sublease Receipts | |
Remainder of Fiscal 2024 | 1,750 |
Fiscal 2025 | 2,396 |
Fiscal 2026 | 1,986 |
Fiscal 2027 | 700 |
Thereafter | 0 |
Total | $ 6,832 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Apr. 30, 2023 | Jan. 31, 2023 | |
Loss Contingencies [Line Items] | |||
Payments for legal settlement | $ 10 | ||
Collected receivables | $ 3.9 | ||
Insurance Claims | |||
Loss Contingencies [Line Items] | |||
Legal settlement recovery | $ 4.5 | ||
Estimated legal settlement recovery | $ 3.9 |
Geographic Information - Schedu
Geographic Information - Schedule of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 219,886 | $ 168,310 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 185,595 | 139,694 |
EMEA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 17,724 | 15,285 |
Asia Pacific | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 8,207 | 6,534 |
Americas other than the United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 8,360 | $ 6,797 |
Geographic Information - Long-l
Geographic Information - Long-lived Assets (Details) - USD ($) $ in Thousands | Apr. 30, 2023 | Jan. 31, 2023 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 66,491 | $ 70,613 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 56,793 | 60,246 |
EMEA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 4,953 | 5,583 |
Asia Pacific | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 4,300 | 4,510 |
Americas other than the United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 445 | $ 274 |
Supplemental Consolidated Fin_3
Supplemental Consolidated Financial Statement Information - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Apr. 30, 2023 | Jan. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid expenses | $ 56,665 | $ 45,877 |
Other current assets | 11,360 | 9,186 |
Prepaid expenses and other current assets | $ 68,025 | $ 55,063 |
Supplemental Consolidated Fin_4
Supplemental Consolidated Financial Statement Information - Narrative (Details) - USD ($) $ in Thousands | Apr. 30, 2023 | Jan. 31, 2023 | Apr. 30, 2022 |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 420 | $ 343 | |
Letter of Credit Collateral | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 600 | $ 600 |
Supplemental Consolidated Fin_5
Supplemental Consolidated Financial Statement Information - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Apr. 30, 2023 | Jan. 31, 2023 | Apr. 30, 2022 | Jan. 31, 2022 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 294,946 | $ 223,156 | $ 239,683 | |
Restricted cash included in prepaid expenses and other current assets | 420 | 343 | ||
Restricted cash | 189 | 197 | 16 | |
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows | $ 295,555 | $ 223,757 | $ 240,042 | $ 449,680 |