Cover Page
Cover Page - shares | 9 Months Ended | |
Oct. 31, 2023 | Dec. 01, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 31, 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) | 136,256,740 | |
Document Fiscal Year Focus | 2024 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q3 | |
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 | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Revenue | ||||
Total revenue | $ 245,918 | $ 199,577 | $ 701,389 | $ 554,578 |
Cost of revenue | ||||
Total cost of revenue | 47,038 | 42,863 | 139,957 | 120,572 |
Gross profit | 198,880 | 156,714 | 561,432 | 434,006 |
Operating expenses | ||||
Research and development | 58,257 | 50,526 | 172,805 | 156,829 |
Sales and marketing | 137,920 | 120,116 | 382,685 | 359,522 |
General and administrative | 38,153 | 28,629 | 109,654 | 94,873 |
Total operating expenses | 234,330 | 199,271 | 665,144 | 611,224 |
Loss from operations | (35,450) | (42,557) | (103,712) | (177,218) |
Interest income | 6,976 | 2,344 | 18,040 | 4,013 |
Other income (expense), net | (790) | 593 | (1,381) | 1,389 |
Loss before income tax provision | (29,264) | (39,620) | (87,053) | (171,816) |
Income tax provision | 3,164 | 517 | 8,602 | 1,091 |
Net loss | $ (32,428) | $ (40,137) | $ (95,655) | $ (172,907) |
Net loss per share, basic (in dollars per share) | $ (0.24) | $ (0.31) | $ (0.71) | $ (1.33) |
Net loss per share, diluted (in dollars per share) | $ (0.24) | $ (0.31) | $ (0.71) | $ (1.33) |
Weighted-average shares outstanding used to compute net loss per share, basic (in shares) | 135,189 | 130,634 | 133,868 | 129,611 |
Weighted-average shares outstanding used to compute net loss per share, diluted (in shares) | 135,189 | 130,634 | 133,868 | 129,611 |
Subscription | ||||
Revenue | ||||
Total revenue | $ 232,470 | $ 186,070 | $ 659,993 | $ 514,879 |
Cost of revenue | ||||
Total cost of revenue | 34,258 | 29,294 | 101,009 | 82,154 |
Professional services | ||||
Revenue | ||||
Total revenue | 13,448 | 13,507 | 41,396 | 39,699 |
Cost of revenue | ||||
Total cost of revenue | $ 12,780 | $ 13,569 | $ 38,948 | $ 38,418 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (32,428) | $ (40,137) | $ (95,655) | $ (172,907) |
Other comprehensive loss | ||||
Net unrealized loss on available-for-sale securities | (25) | (290) | (45) | (693) |
Foreign currency translation adjustments | (507) | (794) | (1,017) | (794) |
Other comprehensive loss | (532) | (1,084) | (1,062) | (1,487) |
Comprehensive loss | $ (32,960) | $ (41,221) | $ (96,717) | $ (174,394) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 31, 2023 | Jan. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 233,247 | $ 223,156 |
Short-term investments | 335,492 | 233,225 |
Accounts receivable, net of allowances of $6,121 and $6,285, respectively | 179,475 | 198,643 |
Prepaid expenses and other current assets | 53,625 | 55,063 |
Total current assets | 801,839 | 710,087 |
Restricted cash | 184 | 197 |
Deferred commissions | 142,051 | 121,785 |
Property and equipment, net | 41,701 | 39,395 |
Operating lease right-of-use assets | 42,060 | 54,278 |
Intangible assets, net | 30,531 | 39,069 |
Goodwill | 140,928 | 142,415 |
Other long-term assets | 3,939 | 2,983 |
Total assets | 1,203,233 | 1,110,209 |
Current liabilities | ||
Accounts payable | 1,005 | 2,125 |
Accrued compensation and related benefits | 75,155 | 68,347 |
Other accrued liabilities | 31,258 | 27,437 |
Operating lease liabilities, current | 16,263 | 19,220 |
Finance lease liabilities, current | 194 | 0 |
Deferred revenue | 482,898 | 457,534 |
Total current liabilities | 606,773 | 574,663 |
Operating lease liabilities, non-current | 36,174 | 47,564 |
Finance lease liabilities, non-current | 505 | 0 |
Deferred revenue, non-current | 2,572 | 2,195 |
Other long-term liabilities | 404 | 129 |
Total liabilities | 646,428 | 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 October 31, 2023 and January 31, 2023 | 0 | 0 |
Additional paid-in capital | 1,411,594 | 1,243,730 |
Accumulated other comprehensive income (loss) | (961) | 101 |
Accumulated deficit | (853,828) | (758,173) |
Total shareholders’ equity | 556,805 | 485,658 |
Total liabilities and shareholders’ equity | 1,203,233 | 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 | Oct. 31, 2023 | Jan. 31, 2023 |
Current assets | ||
Accounts receivable, allowances | $ 6,121 | $ 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) | 135,538,368 | 131,845,028 |
Common stock outstanding (in shares) | 135,538,368 | 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 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) | 3,059,568 | ||||
Issuance of common stock under employee stock plans | 15,344 | 15,344 | |||
Taxes paid related to net share settlement of equity awards | (3,082) | (3,082) | |||
Share-based compensation expense | 129,910 | 129,910 | |||
Other comprehensive loss | (1,487) | (1,487) | |||
Net loss | (172,907) | (172,907) | |||
Ending balance, common stock (in shares) at Oct. 31, 2022 | 130,869,093 | ||||
Ending balance at Oct. 31, 2022 | 472,557 | $ 0 | 1,189,485 | (715,441) | (1,487) |
Beginning balance, common stock (in shares) at Jul. 31, 2022 | 130,155,007 | ||||
Beginning balance at Jul. 31, 2022 | 474,703 | $ 0 | 1,150,410 | (675,304) | (403) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under employee stock plans (in shares) | 714,086 | ||||
Issuance of common stock under employee stock plans | 868 | 868 | |||
Taxes paid related to net share settlement of equity awards | (569) | (569) | |||
Share-based compensation expense | 38,776 | 38,776 | |||
Other comprehensive loss | (1,084) | (1,084) | |||
Net loss | (40,137) | (40,137) | |||
Ending balance, common stock (in shares) at Oct. 31, 2022 | 130,869,093 | ||||
Ending balance at Oct. 31, 2022 | 472,557 | $ 0 | 1,189,485 | (715,441) | (1,487) |
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) | 3,693,340 | ||||
Issuance of common stock under employee stock plans | 12,497 | 12,497 | |||
Taxes paid related to net share settlement of equity awards | (1,644) | (1,644) | |||
Share-based compensation expense | 157,011 | 157,011 | |||
Other comprehensive loss | (1,062) | (1,062) | |||
Net loss | (95,655) | (95,655) | |||
Ending balance, common stock (in shares) at Oct. 31, 2023 | 135,538,368 | ||||
Ending balance at Oct. 31, 2023 | 556,805 | $ 0 | 1,411,594 | (853,828) | (961) |
Beginning balance, common stock (in shares) at Jul. 31, 2023 | 134,499,892 | ||||
Beginning balance at Jul. 31, 2023 | 539,022 | $ 0 | 1,360,851 | (821,400) | (429) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under employee stock plans (in shares) | 1,038,476 | ||||
Issuance of common stock under employee stock plans | 266 | 266 | |||
Taxes paid related to net share settlement of equity awards | (494) | (494) | |||
Share-based compensation expense | 50,971 | 50,971 | |||
Other comprehensive loss | (532) | (532) | |||
Net loss | (32,428) | (32,428) | |||
Ending balance, common stock (in shares) at Oct. 31, 2023 | 135,538,368 | ||||
Ending balance at Oct. 31, 2023 | $ 556,805 | $ 0 | $ 1,411,594 | $ (853,828) | $ (961) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Cash flows from operating activities | ||
Net loss | $ (95,655) | $ (172,907) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Share-based compensation expense | 153,449 | 127,458 |
Depreciation and amortization | 20,008 | 18,476 |
Net amortization of premiums (discounts) on investments | (8,746) | (1,198) |
Amortization of deferred commission costs | 38,439 | 36,712 |
Unrealized foreign currency (gain) loss | 684 | (760) |
Non-cash operating lease costs | 9,450 | 11,631 |
Impairment of long-lived assets | 1,448 | 1,544 |
Other, net | 3,089 | (1,636) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 16,541 | 2,739 |
Prepaid expenses and other current assets | 1,060 | (894) |
Other long-term assets | (1,401) | (336) |
Accounts payable | (997) | 1,356 |
Other accrued liabilities | 4,100 | 8,494 |
Accrued compensation and related benefits | 2,021 | (10,975) |
Deferred commissions | (58,705) | (55,438) |
Deferred revenue | 25,439 | 49,673 |
Other long-term liabilities | 278 | 37 |
Operating lease liabilities | (12,326) | (10,581) |
Net cash provided by operating activities | 98,176 | 3,395 |
Cash flows from investing activities | ||
Purchases of short-term investments | (375,387) | (384,363) |
Maturities of short-term investments | 281,900 | 144,548 |
Proceeds from liquidation of a long-term investment | 0 | 622 |
Purchases of property and equipment | (2,097) | (4,175) |
Proceeds from sale of property and equipment | 28 | 94 |
Capitalized internal-use software development costs | (7,850) | (5,826) |
Payments for business acquisition, net of cash and restricted cash acquired | 0 | (20,342) |
Net cash used in investing activities | (103,406) | (269,442) |
Cash flows from financing activities | ||
Proceeds from exercise of stock options | 1,330 | 4,499 |
Taxes paid related to net share settlement of restricted stock units | (1,644) | (3,082) |
Proceeds from contributions to Employee Stock Purchase Plan | 15,664 | 9,959 |
Net cash provided by financing activities | 15,350 | 11,376 |
Effects of changes in foreign currency exchange rates on cash, cash equivalents, and restricted cash | (248) | (131) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 9,872 | (254,802) |
Cash, cash equivalents, and restricted cash at beginning of period | 223,757 | 449,680 |
Cash, cash equivalents, and restricted cash at end of period | 233,629 | 194,878 |
Supplemental disclosures | ||
Cash paid for income tax | 9,471 | 224 |
Accrued purchases of property and equipment, including internal-use software | 1,264 | 1,727 |
Share-based compensation expense capitalized in internal-use software development costs | 3,283 | 2,452 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 1,684 | 7,230 |
Right-of-use asset reductions related to operating leases | 4,451 | 1,535 |
Purchases of fixed assets under finance leases | $ 693 | $ 0 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 9 Months Ended |
Oct. 31, 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. Smartsheet, the enterprise work management platform, empowers organizations to innovate and achieve results quickly, securely, and at scale through effective collaboration and streamlined workflows. By uniting people, content, and work, Smartsheet provides powerful capabilities that revolutionize the way teams operate. Smartsheet makes outcomes reliable, keeps customer data safe, and ensures users are on the same page, making it ideal for organizations seeking efficient, impactful collaborative work management. Customers access their accounts via a web-based interface or a mobile application. The Company also offers 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 and nine months ended October 31, 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 was accounted for prospectively in the condensed consolidated financial statements. For the three months ended October 31, 2023, there is no impact related to the change in amortization period. For the nine months ended October 31, 2023, the change in amortization period resulted in a benefit to both sales and marketing expense and net loss of approximately 1% of total revenue or $0.07 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 condensed consolidated balance sheets as of July 31, 2022 and those deferred during subsequent periods. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 31, 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 October 31, 2023 or January 31, 2023. No individual customer represented more than 10% of revenue for the three and nine months ended October 31, 2023 or 2022. Recent accounting pronouncements |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Oct. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers During the three months ended October 31, 2023 and 2022, the Company recognized $200.5 million and $157.3 million of subscription revenue, respectively, and $4.4 million and $4.7 million of professional services revenue, respectively, which were included in the deferred revenue balance as of July 31, 2023 and 2022, respectively. During the nine months ended October 31, 2023 and 2022, the Company recognized $406.1 million and $297.3 million of subscription revenue, respectively, and $7.0 million and $4.7 million of professional services revenue, respectively, which were included in the deferred revenue balance as of January 31, 2023 and 2022, respectively. As of October 31, 2023, approximately $584.3 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 $576.7 million related to subscription services and $7.6 million related to professional services. Approximately 89% of revenue related to remaining performance obligations is expected to be recognized in the next 12 months. Deferred commissions were $142.1 million as of October 31, 2023 and $121.8 million as of January 31, 2023. |
Deferred Commissions
Deferred Commissions | 9 Months Ended |
Oct. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Commissions | Revenue from Contracts with Customers During the three months ended October 31, 2023 and 2022, the Company recognized $200.5 million and $157.3 million of subscription revenue, respectively, and $4.4 million and $4.7 million of professional services revenue, respectively, which were included in the deferred revenue balance as of July 31, 2023 and 2022, respectively. During the nine months ended October 31, 2023 and 2022, the Company recognized $406.1 million and $297.3 million of subscription revenue, respectively, and $7.0 million and $4.7 million of professional services revenue, respectively, which were included in the deferred revenue balance as of January 31, 2023 and 2022, respectively. As of October 31, 2023, approximately $584.3 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 $576.7 million related to subscription services and $7.6 million related to professional services. Approximately 89% of revenue related to remaining performance obligations is expected to be recognized in the next 12 months. Deferred commissions were $142.1 million as of October 31, 2023 and $121.8 million as of January 31, 2023. |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Oct. 31, 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 October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Numerator: Net loss $ (32,428) $ (40,137) $ (95,655) $ (172,907) Denominator: Weighted-average shares outstanding 135,189 130,634 133,868 129,611 Net loss per share, basic and diluted $ (0.24) $ (0.31) $ (0.71) $ (1.33) 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): October 31, 2023 2022 Shares subject to outstanding common stock awards 11,873 11,380 Shares issuable pursuant to the 2018 Employee Stock Purchase Plan 313 126 Total potentially dilutive shares 12,186 11,506 |
Investments
Investments | 9 Months Ended |
Oct. 31, 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 October 31, 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): October 31, 2023 Amortized Cost* Unrealized Gains Unrealized Losses Estimated Fair Value Cash equivalents: Money market funds $ 70,959 $ — $ — $ 70,959 U.S. Treasury securities 12,891 — — 12,891 Commercial paper 5,072 — — 5,072 Total cash equivalents 88,922 — — 88,922 Short-term investments: Corporate bonds 83,522 7 (155) 83,374 U.S. Treasury securities 142,767 1 (47) 142,721 Commercial paper 79,749 — — 79,749 Agency securities 29,669 — (21) 29,648 Total short-term investments 335,707 8 (223) 335,492 Total $ 424,629 $ 8 $ (223) $ 424,414 *Excludes interest receivable of $1.0 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 and nine months ended October 31, 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 and nine months ended October 31, 2023 and 2022. None of the short-term investments held as of October 31, 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): October 31, 2023 Amortized Cost Estimated Fair Value Due within one year $ 308,471 $ 308,348 Due between one to five years 27,235 27,144 Total $ 335,706 $ 335,492 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 | 9 Months Ended |
Oct. 31, 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): October 31, 2023 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 70,959 $ — $ — $ 70,959 U.S. Treasury securities — 12,891 — 12,891 Commercial Paper — 5,072 — 5,072 Total cash equivalents 70,959 17,963 — 88,922 Short-term investments: Corporate bonds — 83,374 — 83,374 U.S. Treasury securities — 142,721 — 142,721 Commercial paper — 79,749 — 79,749 Agency securities — 29,648 — 29,648 Total short-term investments — 335,492 — 335,492 Total assets $ 70,959 $ 353,455 $ — $ 424,414 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 and nine months ended October 31, 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. The Company’s long-lived assets are measured at fair value on a non-recurring basis and are reduced if the assets are determined to be impaired. The fair value of the operating lease right-of-use (“ROU”) assets and associated property and equipment was estimated as of the sublease execution date using an income approach by converting future sublease cash inflows and outflows to a single present value. Estimated cash flows were discounted at a rate commensurate with the inherent risks associated with the asset group to arrive at an estimate of fair value. See Note 12, Leases , of these notes to our condensed consolidated financial statements for further details on the impairment charges we recorded. As a result of the subjective nature of unobservable inputs used, these assets are classified within Level 3 of the fair value hierarchy. |
Business Combinations
Business Combinations | 9 Months Ended |
Oct. 31, 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 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. 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 | 9 Months Ended |
Oct. 31, 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 nine months ended October 31, 2023 were as follows (in thousands): Goodwill balance as of January 31, 2023 $ 142,415 Effects of foreign currency translation (1,487) Goodwill balance as of October 31, 2023 $ 140,928 The following table presents the components of net intangible assets (in thousands): October 31, 2023 January 31, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Software technology $ 28,384 $ (18,781) $ 9,603 $ 28,673 $ (14,547) $ 14,126 Customer relationships 34,006 (15,759) 18,247 34,186 (12,265) 21,921 Trade names 4,100 (1,490) 2,610 4,100 (1,157) 2,943 Patents 170 (143) 27 170 (135) 35 Domain names 44 — 44 44 — 44 Total $ 66,704 $ (36,173) $ 30,531 $ 67,173 $ (28,104) $ 39,069 The following table presents the components of acquired intangible assets (dollars in thousands): October 31, 2023 January 31, 2023 Net Carrying Amount Weighted Average Life (Years) Net Carrying Amount Weighted Average Life (Years) Software technology $ 9,603 2.2 $ 14,126 2.8 Customer relationships 18,246 4 21,921 4.7 Trade names 2,610 5.9 2,943 6.6 Total $ 30,459 3.6 $ 38,990 4.2 Amortization expense related to intangible assets was $2.7 million and $2.6 million for the three months ended October 31, 2023 and 2022, respectively, and $8.1 million and $7.6 million for the nine months ended October 31, 2023 and 2022, respectively. As of October 31, 2023, estimated remaining amortization expense for the finite-lived intangible assets by fiscal year is as follows (in thousands): Remainder of Fiscal 2024 $ 2,701 Fiscal 2025 9,602 Fiscal 2026 7,885 Fiscal 2027 5,719 Fiscal 2028 3,432 Thereafter 1,148 Total $ 30,487 |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Oct. 31, 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 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 was dependent on continuous employment, these were not considered part of the purchase price in accounting for the September 2020 acquisition. The RSAs were measured based on the grant date fair value of the awards and vested, 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 nine months ended October 31, 2023: Options Outstanding Weighted-Average Exercise Price Outstanding at January 31, 2023 3,819,288 $ 23.42 Granted — — Exercised (240,388) 5.55 Forfeited or canceled (10,125) 67.00 Outstanding at October 31, 2023 3,568,775 24.50 Exercisable at October 31, 2023 2,993,697 19.02 Restricted stock units The following table includes a summary of the RSU activity during the nine months ended October 31, 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 1,201,599 44.09 Vested (3,151,042) 46.54 Forfeited or canceled (972,095) 47.19 Outstanding at October 31, 2023 8,053,619 46.12 Restricted stock awards The following table includes a summary of the RSA activity during the nine months ended October 31, 2023: Number of Shares Weighted-Average Grant-Date Fair Value per Share Outstanding at January 31, 2023 19,895 $ 46.93 Granted — — Vested (19,895) 46.93 Forfeited or canceled — — Outstanding at October 31, 2023 — — Performance Share Units The following table includes a summary of the PSU activity during the nine months ended October 31, 2023: Number of Shares Weighted-Average Grant-Date Fair Value per PSU Outstanding at January 31, 2023 251,027 $ 53.34 Granted — — Vested — — Forfeited or canceled — — Outstanding at October 31, 2023 251,027 53.34 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. Shares available for issuance The following table includes a summary of the Company’s shares available for issuance activity under our 2018 Plan and our ESPP during the nine months ended October 31, 2023: 2018 Plan 2018 ESPP Balance at January 31, 2023 14,594,290 4,850,775 Authorized 6,592,251 1,318,450 Granted (1,201,599) (343,252) Forfeited or canceled 982,220 — Balance at October 31, 2023 20,967,162 5,825,973 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. The increase of shares is equal to 1% of the total outstanding shares of our Class A 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. 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 October 31, 2023, $6.5 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 October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Cost of subscription revenue $ 3,164 $ 2,517 $ 9,980 $ 7,977 Cost of professional services revenue 1,777 1,436 5,602 4,669 Research and development 17,220 13,317 52,263 44,906 Sales and marketing 17,462 14,068 55,505 45,520 General and administrative 10,024 6,732 30,099 24,386 Total share-based compensation expense $ 49,647 $ 38,070 $ 153,449 $ 127,458 We have excluded $1.3 million and $0.7 million of capitalized software development costs from share-based compensation expense in the three months ended October 31, 2023 and 2022, respectively, and $3.6 million and $2.5 million for the nine months ended October 31, 2023 and 2022, respectively. As of October 31, 2023, there was a total of $348.6 million of unrecognized share-based compensation expense, which is expected to be recognized over a weighted-average period of 2.1 years. |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 31, 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, and 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 $3.2 million and $0.5 million for the three months ended October 31, 2023 and 2022, respectively, and $8.6 million and $1.1 million for the nine months ended October 31, 2023 and 2022, respectively. The provision is primarily attributable to BEAT, income taxes in foreign jurisdictions, and state income taxes. |
Leases
Leases | 9 Months Ended |
Oct. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases related to corporate offices, and finance leases related to computer equipment. Our finance lease ROU assets are included in property and equipment, net in the condensed consolidated balance sheets. 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 October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Operating lease cost $ 4,234 $ 4,580 $ 12,163 $ 14,346 Finance lease cost: Amortization of assets 18 — 18 — Interest on lease liabilities 6 — 6 — Short-term lease cost 97 453 418 709 Variable lease cost 903 791 2,576 2,150 Sublease income (573) (160) (1,667) (160) Total lease costs $ 4,685 $ 5,664 $ 13,514 $ 17,045 Other information related to leases was as follows (dollars in thousands): Nine Months Ended October 31, 2023 2022 Supplemental cash flow information: Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 14,507 $ 14,392 Operating cash flows from finance leases 6 — Financing cash flows from finance leases — — Right-of-use assets obtained in exchange for new lease liabilities Operating leases 1,684 7,230 Finance leases 693 — Right-of-use assets reductions related to operating leases 4,451 1,535 Weighted-average remaining lease term (in years) Operating leases 4.1 4.7 Finance leases 2.9 0.0 Weighted-average discount rate Operating leases 5.5 % 5.2 % Finance leases 9.9 % — % As of October 31, 2023, remaining maturities of lease liabilities were as follows (in thousands): Operating Leases Finance Leases Remainder of Fiscal 2024 $ 4,471 $ 45 Fiscal 2025 16,465 270 Fiscal 2026 14,657 270 Fiscal 2027 10,736 226 Fiscal 2028 6,287 — Thereafter 6,633 — Total lease payments 59,249 811 Less: imputed interest (6,812) (112) Total $ 52,437 $ 699 As of October 31, 2023, the future total minimum sublease payments to be received were as follows (in thousands): Sublease Receipts Remainder of Fiscal 2024 $ 674 Fiscal 2025 2,732 Fiscal 2026 2,154 Fiscal 2027 700 Fiscal 2028 — Thereafter — Total $ 6,260 |
Leases | Leases The Company has operating leases related to corporate offices, and finance leases related to computer equipment. Our finance lease ROU assets are included in property and equipment, net in the condensed consolidated balance sheets. 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 October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Operating lease cost $ 4,234 $ 4,580 $ 12,163 $ 14,346 Finance lease cost: Amortization of assets 18 — 18 — Interest on lease liabilities 6 — 6 — Short-term lease cost 97 453 418 709 Variable lease cost 903 791 2,576 2,150 Sublease income (573) (160) (1,667) (160) Total lease costs $ 4,685 $ 5,664 $ 13,514 $ 17,045 Other information related to leases was as follows (dollars in thousands): Nine Months Ended October 31, 2023 2022 Supplemental cash flow information: Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 14,507 $ 14,392 Operating cash flows from finance leases 6 — Financing cash flows from finance leases — — Right-of-use assets obtained in exchange for new lease liabilities Operating leases 1,684 7,230 Finance leases 693 — Right-of-use assets reductions related to operating leases 4,451 1,535 Weighted-average remaining lease term (in years) Operating leases 4.1 4.7 Finance leases 2.9 0.0 Weighted-average discount rate Operating leases 5.5 % 5.2 % Finance leases 9.9 % — % As of October 31, 2023, remaining maturities of lease liabilities were as follows (in thousands): Operating Leases Finance Leases Remainder of Fiscal 2024 $ 4,471 $ 45 Fiscal 2025 16,465 270 Fiscal 2026 14,657 270 Fiscal 2027 10,736 226 Fiscal 2028 6,287 — Thereafter 6,633 — Total lease payments 59,249 811 Less: imputed interest (6,812) (112) Total $ 52,437 $ 699 As of October 31, 2023, the future total minimum sublease payments to be received were as follows (in thousands): Sublease Receipts Remainder of Fiscal 2024 $ 674 Fiscal 2025 2,732 Fiscal 2026 2,154 Fiscal 2027 700 Fiscal 2028 — Thereafter — Total $ 6,260 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 31, 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. 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 and related general and administrative expense in our condensed consolidated statement of operations as of, and for the year ended, January 31, 2023. The $3.9 million was collected during the three months ended April 30, 2023. We do not expect any additional activity related to this that would have a material impact on our financial position, results of operations, or cash flows. |
Geographic Information
Geographic Information | 9 Months Ended |
Oct. 31, 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 October 31, Nine Months Ended October 31, 2023 2022 2023 2022 United States $ 207,165 $ 166,910 $ 591,982 $ 462,516 EMEA 20,149 16,679 56,631 48,144 Asia Pacific 8,996 8,010 25,869 21,576 Americas other than the United States 9,608 7,978 26,907 22,342 Total $ 245,918 $ 199,577 $ 701,389 $ 554,578 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): October 31, 2023 January 31, 2023 United States $ 49,223 $ 60,246 EMEA 2,221 5,583 Asia Pacific 3,868 4,510 Americas other than the United States 637 274 Total $ 55,949 $ 70,613 |
Supplemental Consolidated Finan
Supplemental Consolidated Financial Statement Information | 9 Months Ended |
Oct. 31, 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): October 31, 2023 January 31, 2023 Prepaid expenses $ 50,600 $ 45,877 Other current assets 3,025 9,186 Total prepaid expense and other current assets $ 53,625 $ 55,063 Restricted cash Restricted cash was $0.4 million and $0.6 million as of October 31, 2023 and January 31, 2023, respectively, primarily related to Australian employee contributions to our ESPP. 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): October 31, 2023 2022 Cash and cash equivalents $ 233,247 $ 194,404 Restricted cash included in prepaid expenses and other current assets 198 293 Restricted cash 184 181 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows $ 233,629 $ 194,878 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Pay vs Performance Disclosure | ||||
Net loss | $ (32,428) | $ (40,137) | $ (95,655) | $ (172,907) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 9 Months Ended |
Oct. 31, 2023 shares | Oct. 31, 2023 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Pete Godbole [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | Rule 10b5-1 Plan Elections During the fiscal quarter ended October 31, 2023, our Chief Financial Officer, Pete Godbole, adopted a “Rule 10b5-1 trading arrangement” as defined in Regulation S-K, Item 408, intended to satisfy the affirmative defense conditions of Rule 10b5-1(c), as amended (the “Rule”). The Rule 10b5-1 trading arrangement included a representation from Mr. Godbole to the broker administering the plan that he was not in possession of any material nonpublic information regarding the Company or the securities subject to the plan. A similar representation was made to the Company in connection with the adoption of the plan, as required under the Company’s insider trading policy. Those representations were made as of the date of adoption of the Rule 10b5-1 trading arrangement, and speak only as of that date. In making those representations, there is no assurance with respect to any material nonpublic information of which Mr. Godbole was unaware, or with respect to any material nonpublic information acquired by Mr. Godbole or the Company after the date of the representation. Name & Title Date Adopted Aggregate Number of Shares of Class A Common Stock to be Purchased or Sold Pursuant to Trading Arrangement (1) Duration (2) Date Terminated Pete Godbole - Chief Financial Officer September 12, 2023 5,557 (3) September 12, 2023 - December 22, 2023 N/A (1) The volume of sales is determined, in part, based on pricing triggers outlined in the trading arrangement. (2) The Rule 10b5-1 trading arrangement permits transactions through and including the earlier to occur of (a) the completion of all purchases or sales or (b) the date listed in the table. The arrangement also provides for automatic expiration in the event of liquidation, dissolution, bankruptcy, insolvency, or death, of the adopting person. (3) The Rule 10b5-1 trading arrangement provides for the sale of a percentage of shares to be received upon future vesting of certain outstanding equity awards, net of any shares withheld by us to satisfy applicable taxes. The number of shares to be withheld, and thus the exact number of shares to be sold pursuant to Mr. Godbole’s Rule 10b5-1 trading arrangement, can only be determined upon the occurrence of the future vesting events. For purposes of this disclosure, we have reported the maximum aggregate number of shares to be sold without subtracting any shares to be withheld upon future vesting events. | |
Name | Pete Godbole | |
Title | Chief Financial Officer | |
Non-Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | September 12, 2023 | |
Arrangement Duration | 101 days | |
Aggregate Available | 5,557 | 5,557 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 31, 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 and nine months ended October 31, 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. |
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 pronouncements |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Oct. 31, 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 October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Numerator: Net loss $ (32,428) $ (40,137) $ (95,655) $ (172,907) Denominator: Weighted-average shares outstanding 135,189 130,634 133,868 129,611 Net loss per share, basic and diluted $ (0.24) $ (0.31) $ (0.71) $ (1.33) |
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): October 31, 2023 2022 Shares subject to outstanding common stock awards 11,873 11,380 Shares issuable pursuant to the 2018 Employee Stock Purchase Plan 313 126 Total potentially dilutive shares 12,186 11,506 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Oct. 31, 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): October 31, 2023 Amortized Cost* Unrealized Gains Unrealized Losses Estimated Fair Value Cash equivalents: Money market funds $ 70,959 $ — $ — $ 70,959 U.S. Treasury securities 12,891 — — 12,891 Commercial paper 5,072 — — 5,072 Total cash equivalents 88,922 — — 88,922 Short-term investments: Corporate bonds 83,522 7 (155) 83,374 U.S. Treasury securities 142,767 1 (47) 142,721 Commercial paper 79,749 — — 79,749 Agency securities 29,669 — (21) 29,648 Total short-term investments 335,707 8 (223) 335,492 Total $ 424,629 $ 8 $ (223) $ 424,414 *Excludes interest receivable of $1.0 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): October 31, 2023 Amortized Cost Estimated Fair Value Due within one year $ 308,471 $ 308,348 Due between one to five years 27,235 27,144 Total $ 335,706 $ 335,492 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) | 9 Months Ended |
Oct. 31, 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): October 31, 2023 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 70,959 $ — $ — $ 70,959 U.S. Treasury securities — 12,891 — 12,891 Commercial Paper — 5,072 — 5,072 Total cash equivalents 70,959 17,963 — 88,922 Short-term investments: Corporate bonds — 83,374 — 83,374 U.S. Treasury securities — 142,721 — 142,721 Commercial paper — 79,749 — 79,749 Agency securities — 29,648 — 29,648 Total short-term investments — 335,492 — 335,492 Total assets $ 70,959 $ 353,455 $ — $ 424,414 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) | 9 Months Ended |
Oct. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Assets Acquired and Liabilities Assumed | The following table summarizes the 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) | 9 Months Ended |
Oct. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill or measurement period adjustments during the nine months ended October 31, 2023 were as follows (in thousands): Goodwill balance as of January 31, 2023 $ 142,415 Effects of foreign currency translation (1,487) Goodwill balance as of October 31, 2023 $ 140,928 |
Schedule of Finite-Lived Intangible Assets | The following table presents the components of net intangible assets (in thousands): October 31, 2023 January 31, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Software technology $ 28,384 $ (18,781) $ 9,603 $ 28,673 $ (14,547) $ 14,126 Customer relationships 34,006 (15,759) 18,247 34,186 (12,265) 21,921 Trade names 4,100 (1,490) 2,610 4,100 (1,157) 2,943 Patents 170 (143) 27 170 (135) 35 Domain names 44 — 44 44 — 44 Total $ 66,704 $ (36,173) $ 30,531 $ 67,173 $ (28,104) $ 39,069 The following table presents the components of acquired intangible assets (dollars in thousands): October 31, 2023 January 31, 2023 Net Carrying Amount Weighted Average Life (Years) Net Carrying Amount Weighted Average Life (Years) Software technology $ 9,603 2.2 $ 14,126 2.8 Customer relationships 18,246 4 21,921 4.7 Trade names 2,610 5.9 2,943 6.6 Total $ 30,459 3.6 $ 38,990 4.2 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of October 31, 2023, estimated remaining amortization expense for the finite-lived intangible assets by fiscal year is as follows (in thousands): Remainder of Fiscal 2024 $ 2,701 Fiscal 2025 9,602 Fiscal 2026 7,885 Fiscal 2027 5,719 Fiscal 2028 3,432 Thereafter 1,148 Total $ 30,487 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Oct. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following table includes a summary of the option activity during the nine months ended October 31, 2023: Options Outstanding Weighted-Average Exercise Price Outstanding at January 31, 2023 3,819,288 $ 23.42 Granted — — Exercised (240,388) 5.55 Forfeited or canceled (10,125) 67.00 Outstanding at October 31, 2023 3,568,775 24.50 Exercisable at October 31, 2023 2,993,697 19.02 |
Schedule of Restricted Stock Units Award Activity | The following table includes a summary of the RSU activity during the nine months ended October 31, 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 1,201,599 44.09 Vested (3,151,042) 46.54 Forfeited or canceled (972,095) 47.19 Outstanding at October 31, 2023 8,053,619 46.12 |
Schedule of Nonvested Restricted Stock Shares Activity | The following table includes a summary of the RSA activity during the nine months ended October 31, 2023: Number of Shares Weighted-Average Grant-Date Fair Value per Share Outstanding at January 31, 2023 19,895 $ 46.93 Granted — — Vested (19,895) 46.93 Forfeited or canceled — — Outstanding at October 31, 2023 — — |
Schedule of Performance Share Units Activity | The following table includes a summary of the PSU activity during the nine months ended October 31, 2023: Number of Shares Weighted-Average Grant-Date Fair Value per PSU Outstanding at January 31, 2023 251,027 $ 53.34 Granted — — Vested — — Forfeited or canceled — — Outstanding at October 31, 2023 251,027 53.34 |
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 nine months ended October 31, 2023: 2018 Plan 2018 ESPP Balance at January 31, 2023 14,594,290 4,850,775 Authorized 6,592,251 1,318,450 Granted (1,201,599) (343,252) Forfeited or canceled 982,220 — Balance at October 31, 2023 20,967,162 5,825,973 |
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 October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Cost of subscription revenue $ 3,164 $ 2,517 $ 9,980 $ 7,977 Cost of professional services revenue 1,777 1,436 5,602 4,669 Research and development 17,220 13,317 52,263 44,906 Sales and marketing 17,462 14,068 55,505 45,520 General and administrative 10,024 6,732 30,099 24,386 Total share-based compensation expense $ 49,647 $ 38,070 $ 153,449 $ 127,458 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Oct. 31, 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 October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Operating lease cost $ 4,234 $ 4,580 $ 12,163 $ 14,346 Finance lease cost: Amortization of assets 18 — 18 — Interest on lease liabilities 6 — 6 — Short-term lease cost 97 453 418 709 Variable lease cost 903 791 2,576 2,150 Sublease income (573) (160) (1,667) (160) Total lease costs $ 4,685 $ 5,664 $ 13,514 $ 17,045 Other information related to leases was as follows (dollars in thousands): Nine Months Ended October 31, 2023 2022 Supplemental cash flow information: Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 14,507 $ 14,392 Operating cash flows from finance leases 6 — Financing cash flows from finance leases — — Right-of-use assets obtained in exchange for new lease liabilities Operating leases 1,684 7,230 Finance leases 693 — Right-of-use assets reductions related to operating leases 4,451 1,535 Weighted-average remaining lease term (in years) Operating leases 4.1 4.7 Finance leases 2.9 0.0 Weighted-average discount rate Operating leases 5.5 % 5.2 % Finance leases 9.9 % — % |
Schedule of Future Minimum Rental Payments for Operating Leases | As of October 31, 2023, remaining maturities of lease liabilities were as follows (in thousands): Operating Leases Finance Leases Remainder of Fiscal 2024 $ 4,471 $ 45 Fiscal 2025 16,465 270 Fiscal 2026 14,657 270 Fiscal 2027 10,736 226 Fiscal 2028 6,287 — Thereafter 6,633 — Total lease payments 59,249 811 Less: imputed interest (6,812) (112) Total $ 52,437 $ 699 |
Lessor, Operating Lease, Payment to be Received, Fiscal Year Maturity | As of October 31, 2023, the future total minimum sublease payments to be received were as follows (in thousands): Sublease Receipts Remainder of Fiscal 2024 $ 674 Fiscal 2025 2,732 Fiscal 2026 2,154 Fiscal 2027 700 Fiscal 2028 — Thereafter — Total $ 6,260 |
Schedule of Future Minimum Rental Payment for Finance Leases | As of October 31, 2023, remaining maturities of lease liabilities were as follows (in thousands): Operating Leases Finance Leases Remainder of Fiscal 2024 $ 4,471 $ 45 Fiscal 2025 16,465 270 Fiscal 2026 14,657 270 Fiscal 2027 10,736 226 Fiscal 2028 6,287 — Thereafter 6,633 — Total lease payments 59,249 811 Less: imputed interest (6,812) (112) Total $ 52,437 $ 699 |
Geographic Information (Tables)
Geographic Information (Tables) | 9 Months Ended |
Oct. 31, 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 October 31, Nine Months Ended October 31, 2023 2022 2023 2022 United States $ 207,165 $ 166,910 $ 591,982 $ 462,516 EMEA 20,149 16,679 56,631 48,144 Asia Pacific 8,996 8,010 25,869 21,576 Americas other than the United States 9,608 7,978 26,907 22,342 Total $ 245,918 $ 199,577 $ 701,389 $ 554,578 |
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): October 31, 2023 January 31, 2023 United States $ 49,223 $ 60,246 EMEA 2,221 5,583 Asia Pacific 3,868 4,510 Americas other than the United States 637 274 Total $ 55,949 $ 70,613 |
Supplemental Consolidated Fin_2
Supplemental Consolidated Financial Statement Information (Tables) | 9 Months Ended |
Oct. 31, 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): October 31, 2023 January 31, 2023 Prepaid expenses $ 50,600 $ 45,877 Other current assets 3,025 9,186 Total prepaid expense and other current assets $ 53,625 $ 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): October 31, 2023 2022 Cash and cash equivalents $ 233,247 $ 194,404 Restricted cash included in prepaid expenses and other current assets 198 293 Restricted cash 184 181 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows $ 233,629 $ 194,878 |
Schedule of Restricted Cash and Cash Equivalents | Cash as reported on the condensed consolidated statements of cash flows consisted of the following (in thousands): October 31, 2023 2022 Cash and cash equivalents $ 233,247 $ 194,404 Restricted cash included in prepaid expenses and other current assets 198 293 Restricted cash 184 181 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows $ 233,629 $ 194,878 |
Overview and Basis of Present_2
Overview and Basis of Presentation (Details) - $ / shares | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Jul. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | Jan. 31, 2023 | Oct. 31, 2023 | Oct. 31, 2022 | |
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) | $ (0.24) | $ (0.31) | $ (0.71) | $ (1.33) | ||
Benefit to net income per share, diluted (in dollars per share) | $ (0.24) | $ (0.31) | $ (0.71) | $ (1.33) | ||
Deferred Commissions, Amortization Period | ||||||
Change in Accounting Estimate [Line Items] | ||||||
Total revenue (in percent) | 1% | |||||
Benefit to net income per share, basic (in dollars per share) | $ 0.07 | |||||
Benefit to net income per share, diluted (in dollars per share) | $ 0.07 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) | 9 Months Ended |
Oct. 31, 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 | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Revenue from External Customer [Line Items] | ||||
Deferred revenue | $ 584.3 | $ 584.3 | ||
Subscription | ||||
Revenue from External Customer [Line Items] | ||||
Revenue recognized included in deferred revenue | 200.5 | $ 157.3 | 406.1 | $ 297.3 |
Deferred revenue | 576.7 | 576.7 | ||
Professional services | ||||
Revenue from External Customer [Line Items] | ||||
Revenue recognized included in deferred revenue | 4.4 | $ 4.7 | 7 | $ 4.7 |
Deferred revenue | $ 7.6 | $ 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]: 2023-11-01 | Oct. 31, 2023 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percentage of revenue related to remaining performance obligations | 89% |
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 | 9 Months Ended | |||||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | Jan. 31, 2023 | Aug. 01, 2022 | Jul. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |||||||
Deferred commissions | $ 142,051 | $ 142,051 | $ 121,785 | ||||
Amortization of deferred commission costs | $ 14,100 | $ 9,100 | $ 38,400 | $ 36,700 | |||
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 | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Numerator: | ||||
Net loss | $ (32,428) | $ (40,137) | $ (95,655) | $ (172,907) |
Denominator: | ||||
Weighted-average shares outstanding, basic (in shares) | 135,189 | 130,634 | 133,868 | 129,611 |
Weighted-average shares outstanding, diluted (in shares) | 135,189 | 130,634 | 133,868 | 129,611 |
Net loss per share, basic (in dollars per share) | $ (0.24) | $ (0.31) | $ (0.71) | $ (1.33) |
Net loss per share, diluted (in dollars per share) | $ (0.24) | $ (0.31) | $ (0.71) | $ (1.33) |
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 | 9 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive shares | 12,186 | 11,506 |
Shares subject to outstanding common stock awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive shares | 11,873 | 11,380 |
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 | 313 | 126 |
Investments - Schedule of Unrea
Investments - Schedule of Unrealized Gains and Losses, and Estimated Fair Values of the Company’s Investments (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Jan. 31, 2023 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Total | $ 424,629 | $ 374,381 |
Unrealized Gains | 8 | 60 |
Unrealized Losses | (223) | (229) |
Estimated Fair Value | 424,414 | 374,212 |
Interest receivable | 1,000 | 1,100 |
Money market funds | Cash equivalents: | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total | 70,959 | 137,490 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | 70,959 | 137,490 |
Agency securities | Cash equivalents: | ||
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 | Cash equivalents: | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total | 88,922 | 140,987 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | 88,922 | 140,987 |
Corporate bonds | Short-term investments: | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total | 83,522 | 66,051 |
Unrealized Gains | 7 | 46 |
Unrealized Losses | (155) | (79) |
Estimated Fair Value | 83,374 | 66,018 |
U.S. Treasury securities | Cash equivalents: | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total | 12,891 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Estimated Fair Value | 12,891 | |
U.S. Treasury securities | Short-term investments: | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total | 142,767 | 62,520 |
Unrealized Gains | 1 | 2 |
Unrealized Losses | (47) | (144) |
Estimated Fair Value | 142,721 | 62,378 |
Commercial paper | Cash equivalents: | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total | 5,072 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Estimated Fair Value | 5,072 | |
Commercial paper | Short-term investments: | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total | 79,749 | 78,454 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | 79,749 | 78,454 |
Agency securities | Short-term investments: | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total | 29,669 | 26,369 |
Unrealized Gains | 0 | 12 |
Unrealized Losses | (21) | (6) |
Estimated Fair Value | 29,648 | 26,375 |
Short-term investments: | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total | 335,706 | 233,394 |
Estimated Fair Value | 335,492 | 233,225 |
Short-term investments: | Short-term investments: | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total | 335,707 | 233,394 |
Unrealized Gains | 8 | 60 |
Unrealized Losses | (223) | (229) |
Estimated Fair Value | $ 335,492 | $ 233,225 |
Investments - Schedule of Matur
Investments - Schedule of Maturities of the Company’s Short-term Investments (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Jan. 31, 2023 |
Amortized Cost | ||
Total | $ 424,629 | $ 374,381 |
Estimated Fair Value | ||
Total | 424,414 | 374,212 |
Total short-term investments | ||
Amortized Cost | ||
Due within one year | 308,471 | 207,487 |
Due between one to five years | 27,235 | 25,907 |
Total | 335,706 | 233,394 |
Estimated Fair Value | ||
Due within one year | 308,348 | 207,325 |
Due between one to five years | 27,144 | 25,900 |
Total | $ 335,492 | $ 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 | Oct. 31, 2023 | Jan. 31, 2023 |
Cash equivalents: | ||
Cash equivalents: | $ 88,922 | $ 140,987 |
Short-term investments: | 335,492 | 233,225 |
Total assets | 424,414 | 374,212 |
Corporate bonds | ||
Cash equivalents: | ||
Short-term investments: | 83,374 | 66,018 |
U.S. Treasury securities | ||
Cash equivalents: | ||
Short-term investments: | 142,721 | 62,378 |
Commercial paper | ||
Cash equivalents: | ||
Short-term investments: | 79,749 | 78,454 |
Agency securities | ||
Cash equivalents: | ||
Short-term investments: | 29,648 | 26,375 |
Money market funds | ||
Cash equivalents: | ||
Cash equivalents: | 70,959 | 137,490 |
Agency securities | ||
Cash equivalents: | ||
Cash equivalents: | 3,497 | |
U.S. Treasury securities | ||
Cash equivalents: | ||
Cash equivalents: | 12,891 | |
Commercial paper | ||
Cash equivalents: | ||
Cash equivalents: | 5,072 | |
Level 1 | ||
Cash equivalents: | ||
Cash equivalents: | 70,959 | 137,490 |
Short-term investments: | 0 | 0 |
Total assets | 70,959 | 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: | 70,959 | 137,490 |
Level 1 | Agency securities | ||
Cash equivalents: | ||
Cash equivalents: | 0 | |
Level 1 | U.S. Treasury securities | ||
Cash equivalents: | ||
Cash equivalents: | 0 | |
Level 1 | Commercial paper | ||
Cash equivalents: | ||
Cash equivalents: | 0 | |
Level 2 | ||
Cash equivalents: | ||
Cash equivalents: | 17,963 | 3,497 |
Short-term investments: | 335,492 | 233,225 |
Total assets | 353,455 | 236,722 |
Level 2 | Corporate bonds | ||
Cash equivalents: | ||
Short-term investments: | 83,374 | 66,018 |
Level 2 | U.S. Treasury securities | ||
Cash equivalents: | ||
Short-term investments: | 142,721 | 62,378 |
Level 2 | Commercial paper | ||
Cash equivalents: | ||
Short-term investments: | 79,749 | 78,454 |
Level 2 | Agency securities | ||
Cash equivalents: | ||
Short-term investments: | 29,648 | 26,375 |
Level 2 | Money market funds | ||
Cash equivalents: | ||
Cash equivalents: | 0 | 0 |
Level 2 | Agency securities | ||
Cash equivalents: | ||
Cash equivalents: | 3,497 | |
Level 2 | U.S. Treasury securities | ||
Cash equivalents: | ||
Cash equivalents: | 12,891 | |
Level 2 | Commercial paper | ||
Cash equivalents: | ||
Cash equivalents: | 5,072 | |
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 | |
Level 3 | U.S. Treasury securities | ||
Cash equivalents: | ||
Cash equivalents: | 0 | |
Level 3 | Commercial paper | ||
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 | Oct. 31, 2023 | Jan. 31, 2023 | Sep. 01, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 140,928 | $ 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 | 9 Months Ended | 12 Months Ended | |
Sep. 01, 2022 | Oct. 31, 2023 | Jan. 31, 2023 | |
Business Acquisition [Line Items] | |||
Expected Useful Life | 3 years 7 months 6 days | 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 2 months 12 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 | 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 | 9 Months Ended |
Oct. 31, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill balance as of January 31, 2023 | $ 142,415 |
Effects of foreign currency translation | (1,487) |
Goodwill balance as of October 31, 2023 | $ 140,928 |
Goodwill and Net Intangible A_4
Goodwill and Net Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Oct. 31, 2023 | Jan. 31, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 66,704 | $ 67,173 |
Accumulated Amortization | (36,173) | (28,104) |
Net Carrying Amount | 30,531 | 39,069 |
Net Carrying Amount | $ 30,459 | $ 38,990 |
Weighted Average Life (Years) | 3 years 7 months 6 days | 4 years 2 months 12 days |
Software technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 28,384 | $ 28,673 |
Accumulated Amortization | (18,781) | (14,547) |
Net Carrying Amount | 9,603 | 14,126 |
Net Carrying Amount | $ 9,603 | $ 14,126 |
Weighted Average Life (Years) | 2 years 2 months 12 days | 2 years 9 months 18 days |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 34,006 | $ 34,186 |
Accumulated Amortization | (15,759) | (12,265) |
Net Carrying Amount | 18,247 | 21,921 |
Net Carrying Amount | $ 18,246 | $ 21,921 |
Weighted Average Life (Years) | 4 years | 4 years 8 months 12 days |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 4,100 | $ 4,100 |
Accumulated Amortization | (1,490) | (1,157) |
Net Carrying Amount | 2,610 | 2,943 |
Net Carrying Amount | $ 2,610 | $ 2,943 |
Weighted Average Life (Years) | 5 years 10 months 24 days | 6 years 7 months 6 days |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 170 | $ 170 |
Accumulated Amortization | (143) | (135) |
Net Carrying Amount | 27 | 35 |
Domain names | ||
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 | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 2.7 | $ 2.6 | $ 8.1 | $ 7.6 |
Goodwill and Net Intangible A_6
Goodwill and Net Intangible Assets - Estimated Remaining Amortization Expense (Details) $ in Thousands | Oct. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of Fiscal 2024 | $ 2,701 |
Fiscal 2025 | 9,602 |
Fiscal 2026 | 7,885 |
Fiscal 2027 | 5,719 |
Fiscal 2028 | 3,432 |
Thereafter | 1,148 |
Total | $ 30,487 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | Jan. 31, 2023 | |
Share-based compensation | |||||
Accrued compensation and related benefits | $ 75,155 | $ 75,155 | $ 68,347 | ||
Capitalized software development costs | 1,300 | $ 700 | 3,600 | $ 2,500 | |
Unrecognized share based compensation expense | $ 348,600 | $ 348,600 | |||
Unrecognized share based compensation expense, period for recognition | 2 years 1 month 6 days | ||||
2018 ESPP | |||||
Share-based compensation | |||||
Granted (in shares) | 343,252 | ||||
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) | 5,825,973 | 5,825,973 | 4,850,775 | ||
Accrued compensation and related benefits | $ 6,500 | $ 6,500 | |||
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 | 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) | 1,201,599 | ||||
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 | 9 Months Ended |
Oct. 31, 2023 $ / shares shares | |
Options Outstanding | |
Outstanding beginning balance (in shares) | shares | 3,819,288 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | (240,388) |
Forfeited or canceled (in shares) | shares | (10,125) |
Outstanding ending balance (in shares) | shares | 3,568,775 |
Exercisable (in shares) | shares | 2,993,697 |
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 | 5.55 |
Forfeited or canceled (in dollars per share) | $ / shares | 67 |
Outstanding ending balance (in dollars per share) | $ / shares | 24.50 |
Exercisable (in dollars per share) | $ / shares | $ 19.02 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Units (Details) - RSUs | 9 Months Ended |
Oct. 31, 2023 $ / shares shares | |
Number of Shares Underlying Outstanding RSUs | |
Outstanding beginning balance (in shares) | shares | 10,975,157 |
Granted (in shares) | shares | 1,201,599 |
Vested (in shares) | shares | (3,151,042) |
Forfeited or canceled (in shares) | shares | (972,095) |
Outstanding ending balance (in shares) | shares | 8,053,619 |
Weighted-Average Grant-Date Fair Value per RSU | |
Outstanding beginning balance (in dollars per share) | $ / shares | $ 46.56 |
Granted (in dollars per share) | $ / shares | 44.09 |
Vested (in dollars per share) | $ / shares | 46.54 |
Forfeited or canceled (in dollars per share) | $ / shares | 47.19 |
Outstanding ending balance (in dollars per share) | $ / shares | $ 46.12 |
Share-Based Compensation - Re_2
Share-Based Compensation - Restricted Stock Awards (Details) - Restricted Stock | 9 Months Ended |
Oct. 31, 2023 $ / shares shares | |
Number of Shares | |
Outstanding beginning balance (in shares) | shares | 19,895 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (19,895) |
Forfeited or canceled (in shares) | shares | 0 |
Outstanding ending balance (in shares) | shares | 0 |
Weighted-Average Grant-Date Fair Value per Share | |
Outstanding beginning balance (in dollars per share) | $ / shares | $ 46.93 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 46.93 |
Forfeited or canceled (in dollars per share) | $ / shares | 0 |
Outstanding ending balance (in dollars per share) | $ / shares | $ 0 |
Share-Based Compensation - Perf
Share-Based Compensation - Performance Share Unit Activity (Details) - Performance Shares - $ / shares | 9 Months Ended | 12 Months Ended |
Oct. 31, 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 - 2018
Share-Based Compensation - 2018 Plan and 2018 Employee Stock Purchase Plan (Details) | 9 Months Ended |
Oct. 31, 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) | (1,201,599) |
Forfeited (in shares) | 982,220 |
Balance at end of period (in shares) | 20,967,162 |
2018 ESPP | |
Share-based compensation | |
Balance at beginning of period (in shares) | 4,850,775 |
Authorized (in shares) | 1,318,450 |
Granted (in shares) | (343,252) |
Forfeited (in shares) | 0 |
Balance at end of period (in shares) | 5,825,973 |
Share-Based Compensation - Shar
Share-Based Compensation - Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | $ 49,647 | $ 38,070 | $ 153,449 | $ 127,458 |
Cost of subscription revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | 3,164 | 2,517 | 9,980 | 7,977 |
Cost of professional services revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | 1,777 | 1,436 | 5,602 | 4,669 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | 17,220 | 13,317 | 52,263 | 44,906 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | 17,462 | 14,068 | 55,505 | 45,520 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | $ 10,024 | $ 6,732 | $ 30,099 | $ 24,386 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision | $ 3,164 | $ 517 | $ 8,602 | $ 1,091 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Lessee, Lease, Description [Line Items] | ||||
Option to extend lease | 5 years | |||
Consolidated impairment charge | $ 1.4 | $ 1.5 | $ 1.4 | $ 1.5 |
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 | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Leases [Abstract] | ||||
Operating lease cost | $ 4,234 | $ 4,580 | $ 12,163 | $ 14,346 |
Finance lease cost: | ||||
Amortization of assets | 18 | 0 | 18 | 0 |
Interest on lease liabilities | 6 | 0 | 6 | 0 |
Short-term lease cost | 97 | 453 | 418 | 709 |
Variable lease cost | 903 | 791 | 2,576 | 2,150 |
Sublease income | (573) | (160) | (1,667) | (160) |
Total lease costs | $ 4,685 | $ 5,664 | $ 13,514 | $ 17,045 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | $ 14,507 | $ 14,392 |
Operating cash flows from finance leases | 6 | 0 |
Financing cash flows from finance leases | 0 | 0 |
Right-of-use assets obtained in exchange for new lease liabilities | ||
Operating leases | 1,684 | 7,230 |
Finance leases | 693 | 0 |
Right-of-use assets reductions related to operating leases | $ 4,451 | $ 1,535 |
Weighted-average remaining lease term (in years) | ||
Operating leases | 4 years 1 month 6 days | 4 years 8 months 12 days |
Finance leases | 2 years 10 months 24 days | 0 years |
Weighted-average discount rate | ||
Operating leases | 5.50% | 5.20% |
Finance leases | 9.90% | 0% |
Leases - Schedule of Remaining
Leases - Schedule of Remaining Maturities and Future Minimum Sublease Payments (Details) $ in Thousands | Oct. 31, 2023 USD ($) |
Operating Leases | |
Remainder of Fiscal 2024 | $ 4,471 |
Fiscal 2025 | 16,465 |
Fiscal 2026 | 14,657 |
Fiscal 2027 | 10,736 |
Fiscal 2028 | 6,287 |
Thereafter | 6,633 |
Total lease payments | 59,249 |
Less: imputed interest | (6,812) |
Total | 52,437 |
Finance Leases | |
Remainder of Fiscal 2024 | 45 |
Fiscal 2025 | 270 |
Fiscal 2026 | 270 |
Fiscal 2027 | 226 |
Fiscal 2028 | 0 |
Thereafter | 0 |
Total lease payments | 811 |
Less: imputed interest | (112) |
Total | 699 |
Sublease Receipts | |
Remainder of Fiscal 2024 | 674 |
Fiscal 2025 | 2,732 |
Fiscal 2026 | 2,154 |
Fiscal 2027 | 700 |
Fiscal 2028 | 0 |
Thereafter | 0 |
Total | $ 6,260 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Feb. 28, 2023 | 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 | $ 3.9 | $ 4.5 |
Geographic Information - Schedu
Geographic Information - Schedule of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 245,918 | $ 199,577 | $ 701,389 | $ 554,578 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 207,165 | 166,910 | 591,982 | 462,516 |
EMEA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 20,149 | 16,679 | 56,631 | 48,144 |
Asia Pacific | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 8,996 | 8,010 | 25,869 | 21,576 |
Americas other than the United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 9,608 | $ 7,978 | $ 26,907 | $ 22,342 |
Geographic Information - Long-l
Geographic Information - Long-lived Assets (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Jan. 31, 2023 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 55,949 | $ 70,613 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 49,223 | 60,246 |
EMEA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 2,221 | 5,583 |
Asia Pacific | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 3,868 | 4,510 |
Americas other than the United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 637 | $ 274 |
Supplemental Consolidated Fin_3
Supplemental Consolidated Financial Statement Information - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Jan. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid expenses | $ 50,600 | $ 45,877 |
Other current assets | 3,025 | 9,186 |
Prepaid expenses and other current assets | $ 53,625 | $ 55,063 |
Supplemental Consolidated Fin_4
Supplemental Consolidated Financial Statement Information - Narrative (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Jan. 31, 2023 | Oct. 31, 2022 |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 198 | $ 293 | |
Letter of Credit Collateral | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 400 | $ 600 |
Supplemental Consolidated Fin_5
Supplemental Consolidated Financial Statement Information - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Jan. 31, 2023 | Oct. 31, 2022 | Jan. 31, 2022 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 233,247 | $ 223,156 | $ 194,404 | |
Restricted cash included in prepaid expenses and other current assets | 198 | 293 | ||
Restricted cash | 184 | 197 | 181 | |
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows | $ 233,629 | $ 223,757 | $ 194,878 | $ 449,680 |