Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Jan. 31, 2024 | Mar. 13, 2024 | Jul. 31, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 31, 2024 | ||
Current Fiscal Year End Date | --01-31 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 5.8 | ||
Entity Common Stock, Shares Outstanding | 137,424,128 | ||
Documents Incorporated by Reference | Certain sections of the Registrant’s definitive proxy statement for its 2024 Annual Meeting of Shareholders (“Proxy Statement”), are incorporated herein by reference in Part II and Part III of this Annual Report on Form 10-K. The Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the Registrant’s fiscal year ended January 31, 2024. | ||
Document Fiscal Year Focus | 2024 | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001366561 |
Audit Information
Audit Information | 12 Months Ended |
Jan. 31, 2024 | |
Audit Information [Abstract] | |
Auditor Firm ID | 34 |
Auditor name | Deloitte & Touche LLP |
Auditor location | Portland, Oregon |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Revenue | $ 958,338 | $ 766,915 | $ 550,832 |
Cost of revenue | 186,448 | 165,285 | 116,473 |
Gross profit | 771,890 | 601,630 | 434,359 |
Operating expenses | |||
Research and development | 234,071 | 215,205 | 165,440 |
Sales and marketing | 510,576 | 479,250 | 329,751 |
General and administrative | 147,525 | 128,811 | 109,204 |
Total operating expenses | 892,172 | 823,266 | 604,395 |
Loss from operations | (120,282) | (221,636) | (170,036) |
Interest income | 25,641 | 7,742 | 48 |
Other income (expense), net | (1,501) | 1,104 | (813) |
Loss before income tax provision | (96,142) | (212,790) | (170,801) |
Income tax provision | 8,489 | 2,849 | 296 |
Net loss | $ (104,631) | $ (215,639) | $ (171,097) |
Basic net loss per share (in dollars per share) | $ (0.78) | $ (1.66) | $ (1.36) |
Diluted net loss per share (in dollars per share) | $ (0.78) | $ (1.66) | $ (1.36) |
Weighted average basic shares outstanding (in shares) | 134,507 | 130,071 | 125,632 |
Weighted average shares outstanding (in shares) | 134,507 | 130,071 | 125,632 |
Subscription | |||
Revenue | $ 904,031 | $ 713,735 | $ 507,375 |
Cost of revenue | 134,658 | 114,384 | 77,460 |
Professional services | |||
Revenue | 54,307 | 53,180 | 43,457 |
Cost of revenue | $ 51,790 | $ 50,901 | $ 39,013 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (104,631) | $ (215,639) | $ (171,097) |
Other comprehensive income (loss) | |||
Net unrealized gains (losses) on available-for-sale securities | 461 | (169) | 0 |
Foreign currency translation adjustments | (708) | 270 | 0 |
Total other comprehensive income (loss) | (247) | 101 | 0 |
Comprehensive loss | $ (104,878) | $ (215,538) | $ (171,097) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 282,094 | $ 223,156 |
Short-term investments | 346,701 | 233,225 |
Accounts receivable, net of allowances of $6,560 and $6,285, respectively | 238,708 | 198,643 |
Prepaid expenses and other current assets | 64,366 | 55,063 |
Total current assets | 931,869 | 710,087 |
Restricted cash | 19 | 197 |
Deferred commissions | 148,867 | 121,785 |
Property and equipment, net | 42,362 | 39,395 |
Operating lease right-of-use assets | 39,480 | 54,278 |
Intangible assets, net | 27,960 | 39,069 |
Goodwill | 141,477 | 142,415 |
Other long-term assets | 5,445 | 2,983 |
Total assets | 1,337,479 | 1,110,209 |
Current liabilities: | ||
Accounts payable | 2,937 | 2,125 |
Accrued compensation and related benefits | 77,453 | 68,347 |
Other accrued liabilities | 30,534 | 27,437 |
Operating lease liabilities, current | 16,040 | 19,220 |
Finance lease liabilities, current | 216 | 0 |
Deferred revenue | 568,670 | 457,534 |
Total current liabilities | 695,850 | 574,663 |
Operating lease liabilities, non-current | 33,100 | 47,564 |
Finance lease liabilities, non-current | 455 | 0 |
Deferred revenue, non-current | 1,785 | 2,195 |
Other long-term liabilities | 434 | 129 |
Total liabilities | 731,624 | 624,551 |
Commitments and contingencies (Note 14) | ||
Shareholders’ equity: | ||
Preferred stock | 0 | 0 |
Additional paid-in capital | 1,468,805 | 1,243,730 |
Accumulated other comprehensive income (loss) | (146) | 101 |
Accumulated deficit | (862,804) | (758,173) |
Total shareholders’ equity | 605,855 | 485,658 |
Total liabilities and shareholders’ equity | 1,337,479 | 1,110,209 |
Common Class A | ||
Shareholders’ equity: | ||
Common stock | 0 | 0 |
Common Class B | ||
Shareholders’ equity: | ||
Common stock | $ 0 | $ 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Accounts receivable, allowances | $ 6,560 | $ 6,285 |
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 | ||
Common stock authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock issued (in shares) | 136,884,011 | 131,845,028 |
Common stock outstanding (in shares) | 136,884,011 | 131,845,028 |
Common Class B | ||
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 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders’ Equity - USD ($) $ in Thousands | Total | Common Stock (Class A and B) | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
Beginning balance, common stock (in shares) at Jan. 31, 2021 | 123,272,902 | ||||
Beginning balance at Jan. 31, 2021 | $ 526,929 | $ 0 | $ 898,366 | $ (371,437) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under employee stock plans (in shares) | 4,536,623 | ||||
Issuance of common stock under employee stock plans | 38,248 | 38,248 | |||
Taxes paid related to net share settlement of restricted stock units | (6,171) | (6,171) | |||
Share-based compensation expense | 116,870 | 116,870 | |||
Other comprehensive income (loss) | 0 | ||||
Comprehensive loss | (171,097) | (171,097) | |||
Net loss | (171,097) | (171,097) | |||
Ending balance, common stock (in shares) at Jan. 31, 2022 | 127,809,525 | ||||
Ending 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) | 4,035,503 | ||||
Issuance of common stock under employee stock plans | 20,577 | 20,577 | |||
Taxes paid related to net share settlement of restricted stock units | (4,177) | (4,177) | |||
Share-based compensation expense | 180,017 | 180,017 | |||
Other comprehensive income (loss) | 101 | 101 | |||
Comprehensive loss | (215,538) | ||||
Net loss | (215,639) | (215,639) | |||
Ending balance, common stock (in shares) at Jan. 31, 2023 | 131,845,028 | ||||
Ending 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) | 5,038,983 | ||||
Issuance of common stock under employee stock plans | 21,106 | 21,106 | |||
Taxes paid related to net share settlement of restricted stock units | (7,100) | (7,100) | |||
Share-based compensation expense | 211,069 | 211,069 | |||
Other comprehensive income (loss) | (247) | (247) | |||
Comprehensive loss | (104,878) | ||||
Net loss | (104,631) | (104,631) | |||
Ending balance, common stock (in shares) at Jan. 31, 2024 | 136,884,011 | ||||
Ending balance at Jan. 31, 2024 | $ 605,855 | $ 0 | $ 1,468,805 | $ (862,804) | $ (146) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Cash flows from operating activities | |||
Net loss | $ (104,631) | $ (215,639) | $ (171,097) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Share-based compensation expense | 206,206 | 176,555 | 114,900 |
Depreciation and amortization | 27,012 | 24,856 | 21,765 |
Net amortization of discounts on investments | (12,546) | (2,768) | 0 |
Amortization of deferred commission costs | 53,587 | 47,093 | 43,680 |
Unrealized foreign currency (gain) loss | 670 | (1,198) | 1,048 |
Non-cash operating lease costs | 12,012 | 18,914 | 14,905 |
Impairment of long-lived assets | 1,448 | 1,544 | 0 |
Other, net | 4,042 | (429) | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (43,910) | (47,597) | (48,575) |
Prepaid expenses and other current assets | (9,548) | (21,437) | (19,884) |
Other long-term assets | (3,049) | (590) | 467 |
Accounts payable | 828 | 154 | (1,331) |
Other accrued liabilities | 3,481 | 8,432 | 1,950 |
Accrued compensation and related benefits | 7,894 | 3,739 | 19,906 |
Deferred commissions | (80,668) | (77,566) | (74,463) |
Deferred revenue | 110,781 | 123,853 | 110,664 |
Other long-term liabilities | 308 | 89 | (3,904) |
Operating lease liabilities | (16,039) | (14,417) | (13,543) |
Net cash provided by (used in) operating activities | 157,878 | 23,588 | (3,512) |
Cash flows from investing activities | |||
Purchases of short-term investments | (513,490) | (456,649) | 0 |
Maturities of short-term investments | 413,100 | 226,048 | 0 |
Purchases of long-term investments | 0 | 0 | (1,000) |
Purchases of property and equipment | (2,563) | (6,137) | (10,563) |
Proceeds from sale of property and equipment | 42 | 217 | 0 |
Proceeds from liquidation of a long-term investment | 0 | 622 | 0 |
Capitalized internal-use software development costs | (10,775) | (7,660) | (6,706) |
Purchases of intangible assets | 0 | 0 | (31) |
Payments for business acquisitions, net of cash and restricted cash acquired | 0 | (20,342) | 0 |
Net cash used in investing activities | (113,686) | (263,901) | (18,300) |
Cash flows from financing activities | |||
Proceeds from exercise of stock options | 1,653 | 5,633 | 19,132 |
Taxes paid related to net share settlement of restricted stock units | (7,100) | (4,177) | (6,171) |
Proceeds from contributions to Employee Stock Purchase Plan | 20,006 | 12,600 | 17,380 |
Payments on principal of finance leases | (34) | 0 | 0 |
Net cash provided by financing activities | 14,525 | 14,056 | 30,341 |
Effects of changes in foreign currency exchange rates on cash, cash equivalents, and restricted cash | (32) | 334 | (1,197) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 58,685 | (225,923) | 7,332 |
Cash, cash equivalents, and restricted cash at beginning of period | 223,757 | 449,680 | 442,348 |
Cash, cash equivalents, and restricted cash at end of period | 282,442 | 223,757 | 449,680 |
Supplemental disclosures | |||
Cash paid for interest | 11 | 0 | 0 |
Cash paid for income tax | 12,085 | 551 | 196 |
Accrued purchases of property and equipment, including internal-use software | 1,445 | 1,271 | 1,164 |
Share-based compensation capitalized in internal-use software development costs | 4,567 | 3,359 | 1,970 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 1,666 | 7,230 | 994 |
Right-of-use assets reductions related to operating leases | 4,451 | 4,696 | 0 |
Purchases of fixed assets under finance leases | $ 693 | $ 0 | $ 0 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 12 Months Ended |
Jan. 31, 2024 | |
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 consolidated financial statements have been prepared in conformity with accounting principles generally accepted in th e United States of America (“GAAP”), and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding financial reporting. Certain prior period amounts have been reclassified to conform to current period presentation. These amounts were not material to any of the periods presented. The Company’s fiscal year ends on January 31. The 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 consolidated financial statements. All such adjustments are of a normal, recurring nature. Use of estimates The preparation of the 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 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, and we evaluate these estimates on an ongoing basis . 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. During the year ended January 31, 2023, the Company completed an assessment of the amortization period for deferred sales commission costs and determined that it should increase the period over which we amortize deferred commissions from three years to four years. This change in accounting estimate was effective August 1, 2022 and is being accounted for prospectively in the consolidated financial statements. For the year ended January 31, 2024, 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. For the year ended January 31, 2023, the change in amortization period resulted in a benefit to both sales and marketing expense and net loss of approximately 2% of total revenue or $0.09 per basic and diluted share. The effect of this change in estimate is based on the carrying value of deferred commissions included in the Company’s consolidated balance sheets as of July 31, 2022 and those deferred during subsequent periods. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Segment information The Company operates as one operating segment. The Company’s chief operating decision maker is its Chief Executive Officer, who reviews consolidated financial information for purposes of making operating decisions, assessing financial performance, and allocating resources. Revenue recognition The Company derives its revenue primarily from subscription services and professional services. Revenue is recognized when control of these services is transferred to the Company ’ s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services, net of any sales taxes. The Company determines revenue recognition through the following steps: • identification of the contract, or contracts, with a customer; • identification of the performance obligations in the contract; • determination of the transaction price; • allocation of the transaction price to the performance obligations in the contract; and • recognition of revenue when, or as, the Company satisfies a performance obligation. Subscription revenue Subscription revenue primarily consists of fees from customers for access to the Company’s cloud-based platform and involves a significant volume of transactions. The Company uses automated systems to process and record these transactions. S ubscription revenue is recognized on a ratable basis over the subscription contract term, beginning on the date the access to the Company ’ s platform is provided, as no implementation work is required, if consideration the Company is entitled to receive is probable of collection. Subscription contracts generally have terms of one year, are billed in advance, and are non-cancelable. The subscription arrangements do not allow the customer the contractual right to take possession of the platform; as such, the arrangements are considered to be service contracts. Certain of the Company ’ s subscription contracts contain performance guarantees related to service continuity. To date, refunds related to such guarantees have been immaterial in all periods presented. On occasion, the Company sells its subscriptions to third-party resellers. The price at which the Company sells to the reseller is typically discounted, as compared to the price at which the Company would sell to an end customer, in order to enable the reseller to realize a margin on the eventual sale to the end customer. As our pricing to the reseller is fixed, and the Company does not have visibility into the pricing provided by the reseller to the end customer, the revenue is recorded net of any reseller margin. Professional services revenue Professional services revenue primarily includes fees for consulting and training services. The Company’s consulting services consist of platform configuration and use case optimization, and are primarily invoiced on a time and materials basis, monthly in arrears. Consulting services revenue is recognized over time, as those services are delivered. Occasionally, consulting engagements are provided for a fixed fee. In these cases, revenue is recognized over time, based on the proportion of hours of work performed, compared to the total hours expected to complete the engagement. Configuration and use case optimization services do not result in significant customization or modification of the software platform or user interface. Training services are billed in advance, on a fixed-fee basis, and revenue is recognized after the training program is delivered, or after the customer’s right to receive training services expires. Associated out-of-pocket travel expenses related to the delivery of professional services are typically reimbursed by the customer. Out-of-pocket expense reimbursements are recognized as revenue at the point in time, or as the distinct performance obligation to which they relate is delivered. Out-of-pocket expenses are recognized as cost of professional services and are expensed as incurred. Contracts with multiple performance obligations Some of the Company’s contracts with customers contain multiple performance obligations. The Company accounts for individual performance obligations separately, as they have been determined to be distinct, i.e., the services are separately identifiable from other items in the arrangement and the customer can benefit from them on their own or with other resources that are readily available to the customer. The transaction price is allocated to the distinct performance obligations on a relative stand-alone selling price basis. Stand-alone selling prices are determined based on the prices at which the Company separately sells subscription, consulting, and training services, and based on t he Company’s overall pricing objectives, taking into consideration market conditions, value of t he Company’s contracts, the types of offerings sold, customer demographics, and other factors. Accounts receivable and allowance for doubtful accounts Accounts receivable are primarily comprised of trade receivables that are recorded at the invoice amount, net of an allowance for doubtful accounts. Subscription fees billed in advance of the related subscription term represent contract liabilities and are presented as accounts receivable and deferred revenues upon establishment of the unconditional right to invoice, typically upon signing of the non-cancelable service agreement. Our typical payment terms provide for customer payment within 30 days of the invoice date. The allowance for doubtful accounts is based on the Company’s estimated expected credit losses derived upon assessment of various factors including historical trends on collectibility, composition of accounts receivable by aging, current market conditions, reasonable and supportable forecasts of future economic conditions, and other factors. The estimated credit losses are recorded to the allowance for doubtful accounts in the consolidated balance sheets, with an offsetting decrease in related deferred revenue and a reduction of revenue or charge to general and administrative expense in the consolidated statements of operations. Activity related to the Company’s allowance for doubtful accounts was as follows (in thousands): January 31, 2024 2023 2022 Beginning balance $ 6,285 $ 7,561 $ 6,933 Additions 8,631 5,440 7,700 Write-offs (8,356) (6,716) (7,072) Ending balance $ 6,560 $ 6,285 $ 7,561 Deferred revenue Deferred revenue consists of customer billings and payments in advance of revenue being recognized from the Company’s contracts. The Company typically invoices its customers annually in advance for its subscription-based contracts. Deferred revenue and accounts receivable are recorded at the beginning of a new subscription term. For some customers, the Company invoices in monthly, quarterly, semi-annual, or multi-year installments and, therefore, the deferred revenue balance does not necessarily represent the total contract value of all non-cancelable subscription agreements. Deferred revenue anticipated to be recognized during the succeeding 12-month period is recorded as a current liability and the remaining portion is recorded as deferred revenue, non-current in our consolidated balance sheets. Deferred commissions The majority of sales commissions earned by the Company ’s sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions are primarily paid on initial contracts and on any upsell contracts with a customer. Sales commissions and related payroll taxes and incremental fringe benefits are deferred and then amortized on a straight-line basis over a period of benefit that the Company has determined to be four years. The Company determined the period of benefit by taking into consideration its customer contracts, expected customer life, the expected life of its technology, and other factors. Amortization expense is included in sales and marketing expense in the consolidated statements of operations. The Company evaluates the period of benefit and tests for impairment on a quarterly basis and whenever events or changes in circumstances occur that could impact the recoverability of these assets. Overhead allocations The Company allocates shared costs, such as facilities (including lease costs, utilities, and depreciation on equipment shared by all departments) and information technology, to all departments based on headcount. As such, allocated shared costs are reflected in each cost of revenue and operating expense category in the consolidated statements of operations. Cash, cash equivalents, and restricted cash The Company considers all highly liquid investments with an original maturity of three months or less from date of purchase to be cash equivalents. Cash and cash equivalents are recorded at cost, which approximates fair value. Interest earned on cash and cash equivalents is recorded in interest income in the consolidated statements of operations. The Company’s restricted cash primarily relates to Australian employee contributions to our ESPP. See Note 17, Supplemental Consolidated Financial Statement Information, for more information related to our restricted cash. Short-term investments The Company’s short-term investments primarily consist of U.S. Treasury securities, corporate bonds, commercial paper, and agency securities that have original maturities greater than three months at the time of purchase. These investments are classified as available-for-sale securities and we re-evaluate such classification as of each balance sheet date. The Company considers all investments as available for use in current operations, including those with maturity dates beyond one year, and therefore classifies these securities as current assets in its consolidated balance sheets. Available-for-sale securities are recorded at fair value each reporting period. For unrealized losses in securities that the Company intends to hold and will not be more likely than not required to sell before recovery, the Company further evaluates whether declines in fair value below amortized cost are due to credit or non-credit related factors. The Company considers credit related impairments to be changes in value that are driven by a change in the creditor’s ability to meet its payment obligations, and records an allowance and recognizes a corresponding loss in other income (expense), net in the consolidated statements of operations when the impairment is incurred. Unrealized non-credit related losses and unrealized gains are reported as a separate component of accumulated other comprehensive income (loss) in the consolidated balance sheets until realized. Realized gains and losses are determined based on the specific identification method and are reported in other income (expense), net in the consolidated statements of operations. Business combinations When we acquire a business, the purchase price is allocated to the assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. Any residual purchase price is recorded as goodwill. The allocation of the purchase price requires management to make significant estimates in determining the fair values of the assets acquired and liabilities assumed, especially with respect to the identifiable intangible assets. These estimates can include, but are not limited to, the cash flows that an asset is expected to generate in the future, the appropriate weighted-average cost of capital, the cost savings expected to be derived from acquiring an asset, its expected remaining economic useful life, and the appropriate discount rate to employ in the valuation analyses in order to properly account for the risk associated with the asset’s expected future cash flows. These estimates are inherently uncertain. During the measurement period, which may be up to one year from the acquisition date, adjustments to the fair values of these tangible and intangible assets acquired and liabilities assumed may be recorded, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statements of operations. Acquisition costs, such as legal and consulting fees, are expensed as incurred. Goodwill and acquired intangible assets The Company evaluates goodwill for impairment at the reporting unit level on an annual basis (September 1), or whenever events or changes in circumstances indicate that impairment may exist. Events or changes in circumstances which could trigger an impairment review include, but are not limited to, a significant adverse change in customer demand or business climate or a significant decrease in expected cash flows. When evaluating goodwill for impairment, the Company may first perform a qualitative assessment to determine whether it is more likely than not that a reporting unit is impaired. If the Company does not perform a qualitative assessment, or if the Company determines that it is not more likely than not that the fair value of the reporting unit exceeds its carrying amount, the Company calculates the estimated fair value of the reporting unit. If the carrying amount of the reporting unit exceeds the estimated fair value, an impairment charge is recorded to reduce the carrying value to the estimated fair value. No impairment charges were recorded for the years ended January 31, 2024, 2023, or 2022. Acquired intangible assets consist of identifiable intangible assets, primarily software technology and customer relationships, resulting from our acquisitions. Intangible assets are recorded at fair value on the date of acquisition and amortized over their estimated useful lives. Property and equipment Property and equipment are recorded at cost, net of accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the following estimated useful lives: Computer equipment 3 years Computer software 3 years Furniture and fixtures 5-7 years Leasehold improvements are amortized over the shorter of the expected useful lives of the assets or the related lease term. Maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. Internal-use software development costs The Company capitalizes certain qualifying costs incurred during the application development stage in connection with the development of internal-use software. Costs related to preliminary project activities and post-implementation activities are expensed in research and development (“R&D”) as incurred. R&D expenses consist primarily of employee-related costs, software-related costs, allocated overhead, and costs of outside services used to supplement our internal staff. Internal-use software costs of $15.9 million and $11.0 million were capitalized in the years ended January 31, 2024 and 2023, respectively. All capitalized costs related to costs incurred during the application development stage of software development for the Company’s platform to which subscriptions are sold. Capitalized internal-use software costs are included within property and equipment, net on the consolidated balance sheets, and are amortized over the estimated useful life of the software, which we have determined to be three years. The related amortization expense is recognized in the consolidated statements of operations within the function that receives the benefit of the developed software. Amortization expense of capitalized internal-use software costs totaled $9.5 million, $7.7 million, and $5.7 million for the years ended January 31, 2024, 2023, and 2022, respectively. Leases The Company determines if an arrangement is a lease at inception, and leases are classified at commencement as either operating or finance leases. Finance lease assets are included in property and equipment, net on our consolidated balance sheets. Right-of-use (“ROU”) assets and lease liabilities are recognized at commencement date based on the present value of the future minimum lease payments over the lease term. ROU assets also include any lease payments made. As our leases do not provide an implicit rate, we estimate our incremental borrowing rate based on information available at the commencement date in determining the present value of future payments. This rate is an estimate of the collateralized borrowing rate the Company would incur on its future lease payments over a similar term based on the information available at commencement date. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. At January 31, 2024, we did not include any options to extend leases in our lease terms as we were not reasonably certain to exercise them. The Company’s lease agreements do not contain residual value guarantees or covenants. The Company utilizes certain practical expedients and policy elections available under the lease accounting standard. Leases with a term of one year or less are not recognized on our consolidated balance sheets; we recognize our operating lease expense on a straight-line basis over the lease term. Additionally, we have elected to include non-lease components with lease components for the purpose of calculating lease ROU assets and liabilities, to the extent that they are fixed. Non-lease components that are not fixed are expensed as incurred as variable lease payments. Our operating leases typically include non-lease components such as common area maintenance costs. The Company accounts for subleases from the perspective of a lessor. The Company has various subleases, which are classified as operating leases. The Company records sublease income as a reduction of lease expense using the straight-line method over the term of the sublease. Impairment of long-lived assets Long-lived assets, such as property and equipment, intangible assets, operating lease ROU assets, and internal-use software development costs, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Recoverability of an asset group is measured by comparing the carrying amount to the estimated undiscounted future cash flows expected to be generated. When the carrying amount exceeds the undiscounted cash flows, the assets are adjusted to their estimated fair value and an impairment charge is recognized as the amount by which the carrying amount exceeds its fair value. We recorded an impairment charge of $1.4 million and $1.5 million during the years ended January 31, 2024 and 2023 , respectively, related to the ROU assets and underlying property and equipment associated with our subleased office spaces as described further in Note 13, Leases , to the consolidated financial statements. Self-funded health insurance The Company’s health insurance plan is partially self-funded. To reduce its risk related to high-dollar claims, the Company maintains individual and aggregate stop-loss insurance. The Company estimates its exposure for claims incurred but not yet paid at the end of each reporting period and uses historical claims data to estimate its self-insurance liability. As of January 31, 2024 and 2023 , the Company’s net self-insurance reserve estimate was $2.7 million and $2.3 million, respectively, which was included in other accrued liabilities in the accompanying consolidated balance sheets. Advertising expenses Advertising and marketing costs are expensed as incurred, and are included in sales and marketing expense in the consolidated statements of operations. Advertising and marketing expenses, inclusive of b rand awareness and demand generation costs we re $88.5 million, $77.9 million, and $55.6 million for the years ended January 31, 2024, 2023, and 2022, respec tively. Share-based compensation The Company measures and recognizes compensation expense for all share-based awards granted to employees and directors, based on the estimated fair value of the award on the date of grant. We use the Black-Scholes option pricing model to measure the fair values of stock option awards and shares granted under our ESPP. The fair values of RSUs are measured using the closing market price of the Company’s common stock on the date of the grant. The Company uses the Monte Carlo simulation technique to calculate the fair values of market-based awards, which include our PSUs. For awards that vest solely based on continued service, the fair value of an award is recognized as an expense over the requisite service period on a straight-line basis. For awards that contain market-conditions, we recognize share-based compensation expense over the requisite service period using the graded-vesting method. The Company recognizes share-based compensation expense related to shares issued pursuant to our ESPP on a straight-line basis over the offering period including estimated forfeitures. Share-based compensation expense is included in cost of revenue and operating expenses within our consolidated statements of operations based on the department of the individual earning the award. The Company makes several estimates in determining share-based compensation and these estimates generally require significant analysis and judgment to develop. Income taxes Income taxes are accounted for using the asset and liability method. Under this method, the Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. The Company records a valuation allowance to reduce deferred tax assets to an amount for which realization is more likely than not. The Company evaluates and accounts for uncertain tax positions using a two-step approach. The first step is to evaluate if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained in an audit. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company reflects interest and penalties related to income tax liabilities as a component of income tax expense. 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 January 31, 2024 or January 31, 2023. No individual customer represented more than 10% of revenue for the years ended January 31, 2024, 2023, or 2022. Net loss per share The Company calculates basic net loss per share by dividing net loss by the weighted-average number of the Company’s common stock shares outstanding during the respective period. For periods where we report net income, the Company will use the treasury stock method to calculate diluted net income per share by adjusting basic net income per share for the potential dilutive impacts of outstanding stock options, RSUs, PSUs, and shares issuable pursuant to our ESPP. Since we have reported a net loss for all periods presented, all potentially dilutive shares are antidilutive and therefore no adjustment to the denominator is made. Diluted net loss per share and basic net loss per share are the same number for all periods presented. Foreign currency translation The functional currency of the Company’s foreign operations is primarily the U.S. dollar, while a few of our wholly owned subsidiaries use their respective local currency as their functional currency. We present our consolidated financial statements in U.S. dollar. For subsidiaries where the functional currency is a foreign currency, the Company translates the foreign currency financial statements to U.S. dollar using the exchange rates at the balance sheet date for assets and liabilities, the period average exchange rates for revenues and expenses, and the historical exchange rates for equity. The effects of foreign currency translation adjustments are recorded in accumulated other comprehensive income (loss) as a component of shareholders’ equity in the consolidated balance sheets and the related periodic movements are presented in the consolidated statements of comprehensive loss. Foreign currency transaction gains and losses are included in other income (expense), net, in the consolidated statements of operations for the period. Recently adopted accounting pronouncements There were no recent accounting pronouncements, changes in accounting pronouncements, or recently adopted accounting guidance during the year ended January 31, 2024 that had a material impact on our consolidated financial statements. Recent accounting pronouncements not yet adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The new guidance requires public entities to disclose information about their reportable segments’ significant expenses and other segment items on an interim and annual basis. Public entities with a single reportable segment are required to apply the disclosure requirements in ASU 2023-07, as well as all existing segment disclosures and reconciliation requirements in ASC 280, on an interim and annual basis. The standard is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact of adopting ASU 2023-07. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact of adopting ASU 2023-09. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Jan. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers During the years ended January 31, 2024, 2023, and 2022 the Company recognized $448.1 million, $328.1 million, and $216.6 million of subscription revenue, respectively, and $7.0 million, $4.7 million, and $4.8 million of professional services revenue, respectively, which were included in the deferred revenue balance as of January 31, 2023, 2022, and 2021, respectively. As of January 31, 2024, approximately $713.7 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 $704.0 million related to subscription services and $9.7 million related to professional services. Approximately 86% of revenue related to remaining performance obligations is expected to be recognized in the next 12 months. Deferred commissions were $148.9 million and $121.8 million as of January 31, 2024 and 2023, respectively. Amortization expense for deferred commissions was $53.6 million, $47.1 million, and $43.7 million for the years ended January 31, 2024, 2023, and 2022, respectively. Prior to August 1, 2022, deferred commissions were amortized over a period of three years. Effective as of August 1, 2022, deferred commissions are amortized over a period of four years. The amortization expense is recorded in sales and marketing on the Company’s consolidated statements of operations. No material impairments of commissions assets were recorded during the years ended January 31, 2024, 2023, or 2022 . |
Deferred Commissions
Deferred Commissions | 12 Months Ended |
Jan. 31, 2024 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Deferred Commissions | Revenue from Contracts with Customers During the years ended January 31, 2024, 2023, and 2022 the Company recognized $448.1 million, $328.1 million, and $216.6 million of subscription revenue, respectively, and $7.0 million, $4.7 million, and $4.8 million of professional services revenue, respectively, which were included in the deferred revenue balance as of January 31, 2023, 2022, and 2021, respectively. As of January 31, 2024, approximately $713.7 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 $704.0 million related to subscription services and $9.7 million related to professional services. Approximately 86% of revenue related to remaining performance obligations is expected to be recognized in the next 12 months. Deferred commissions were $148.9 million and $121.8 million as of January 31, 2024 and 2023, respectively. Amortization expense for deferred commissions was $53.6 million, $47.1 million, and $43.7 million for the years ended January 31, 2024, 2023, and 2022, respectively. Prior to August 1, 2022, deferred commissions were amortized over a period of three years. Effective as of August 1, 2022, deferred commissions are amortized over a period of four years. The amortization expense is recorded in sales and marketing on the Company’s consolidated statements of operations. No material impairments of commissions assets were recorded during the years ended January 31, 2024, 2023, or 2022 . |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Jan. 31, 2024 | |
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): Year Ended January 31, 2024 2023 2022 Numerator: Net loss $ (104,631) $ (215,639) $ (171,097) Denominator: Weighted-average shares outstanding 134,507 130,071 125,632 Net loss per share, basic and diluted $ (0.78) $ (1.66) $ (1.36) 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): Year Ended January 31, 2024 2023 2022 Shares subject to outstanding common stock awards 12,637 15,045 11,855 Shares issuable pursuant to the 2018 Employee Stock Purchase Plan 331 386 52 Total potentially dilutive shares 12,968 15,431 11,907 |
Investments
Investments | 12 Months Ended |
Jan. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments All cash equivalents and short-term investments were designated as available-for-sale securities as of January 31, 2024. 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): January 31, 2024 Amortized Cost* Unrealized Gains Unrealized Losses Estimated Fair Value Cash equivalents: Money market funds $ 79,082 $ — $ — $ 79,082 Commercial paper 4,497 — — 4,497 Total cash equivalents 83,579 — — 83,579 Short-term investments: Corporate bonds 99,547 158 (9) 99,696 U.S. Treasury securities 169,825 123 — 169,948 Commercial paper 57,755 — — 57,755 Agency securities 19,282 21 (1) 19,302 Total short-term investments 346,409 302 (10) 346,701 Total $ 429,988 $ 302 $ (10) $ 430,280 *Excludes interest receivable of $1.5 million, which is included in Prepaid expenses and other current assets on the 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 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 years ended January 31, 2024 or 2023. 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 years ended January 31, 2024 or 2023. None of the short-term investments held as of January 31, 2024 or 2023 were in a continuous unrealized loss position for greater than 12 months. As of January 31, 2022, the Company did not hold any available-for-sale securities. The following table presents the contractual maturities of the Company’s short-term investments (in thousands): January 31, 2024 Amortized Cost Estimated Fair Value Due within one year $ 312,314 $ 312,508 Due between one to five years 34,095 34,193 Total $ 346,409 $ 346,701 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and liabilities recorded at fair value in the 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 indicates the fair value hierarchy of the valuation inputs used (in thousands): January 31, 2024 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 79,082 $ — $ — $ 79,082 Commercial paper — 4,497 — 4,497 Total cash equivalents 79,082 4,497 — 83,579 Short-term investments: Corporate bonds — 99,696 — 99,696 U.S. Treasury securities — 169,948 — 169,948 Commercial paper — 57,755 — 57,755 Agency securities — 19,302 — 19,302 Total short-term investments — 346,701 — 346,701 Total assets $ 79,082 $ 351,198 $ — $ 430,280 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 years ended January 31, 2024 or 2023. Assets and liabilities measured at fair value on a non-recurring basis See Note 9, Business Combinations, and Note 10, Goodwill and Net Intangible Assets , of these notes to our consolidated financial statements for fair value measurements of certain assets and liabilities recorded at fair value on a non-recurring basis. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Jan. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consists of the following (in thousands): January 31, 2024 2023 Computer equipment $ 12,674 $ 12,954 Computer software, developed 42,941 33,260 Furniture and fixtures 5,935 6,526 Leasehold improvements 9,112 9,612 Total property and equipment 70,662 62,352 Less: accumulated depreciation (28,300) (22,957) Total property and equipment, net $ 42,362 $ 39,395 Depreciation expense was $15.2 million, $13.7 million, and $10.9 million for the years ended January 31, 2024, 2023, and 2022, respectively. |
Business Combinations
Business Combinations | 12 Months Ended |
Jan. 31, 2024 | |
Business Combinations [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 fair values assigned to assets acquired and liabilities assumed were based on management’s best estimates and assumptions and are considered final. The following table summarizes the final 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. 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 the assumptions with respect to the future cash flows forecast, base year annualized 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 consolidated statements of operations. The amortization expense related to the customer relationship intangible asset is recognized over the useful life within sales and marketing in the 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 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 | 12 Months Ended |
Jan. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Net Intangible Assets | Goodwill and Net Intangible Assets The changes in the carrying amount of goodwill during the years ended January 31, 2024 and 2023 were as follows (in thousands): Goodwill balance as of January 31, 2022 $ 125,605 Additions and measurement period adjustments - acquisition of Outfit 16,434 Effects of foreign currency translation 376 Goodwill balance as of January 31, 2023 142,415 Effects of foreign currency translation (938) Goodwill balance as of January 31, 2024 $ 141,477 No goodwill impairments were recorded during the years ended January 31, 2024, 2023, or 2022. The following table presents the components of net intangible assets (in thousands): January 31, 2024 January 31, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Software technology $ 28,491 $ (20,231) $ 8,260 $ 28,673 $ (14,547) $ 14,126 Customer relationships 34,072 (16,941) 17,131 34,186 (12,265) 21,921 Trade names 4,100 (1,601) 2,499 4,100 (1,157) 2,943 Patents 170 (144) 26 170 (135) 35 Domain names 44 — 44 44 — 44 Total $ 66,877 $ (38,917) $ 27,960 $ 67,173 $ (28,104) $ 39,069 The components of intangible assets acquired as of the periods presented were as follows (dollars in thousands): January 31, 2024 January 31, 2023 Net Carrying Amount Weighted Average Life (Years) Net Carrying Amount Weighted Average Life (Years) Software technology $ 8,260 2.1 $ 14,126 2.8 Customer relationships 17,131 3.7 21,921 4.7 Trade names 2,499 5.6 2,943 6.6 Total $ 27,890 3.4 $ 38,990 4.2 Amortization expense related to intangible assets was $10.8 million, $10.3 million, and $10.1 million for the years ended January 31, 2024, 2023, and 2022, respectively. As of January 31, 2024, estimated remaining amortization expense for the finite-lived intangible assets by fiscal year is as follows (in thousands): Fiscal 2025 $ 9,633 Fiscal 2026 7,916 Fiscal 2027 5,750 Fiscal 2028 3,454 Fiscal 2029 721 Thereafter 442 Total $ 27,916 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Jan. 31, 2024 | |
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 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 market-based PSUs to certain executives pursuant to the 2018 Plan during the years ended January 31, 2024 and 2023. The target number of market-based PSUs granted were 195,948 and 251,027 during the years ended January 31, 2024 and January 31, 2023, respectively. The number of shares that can be earned under each grant 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. The awards granted during the year ended January 31, 2024 have a two-year performance period ending on the second anniversary of the date of grant. The awards granted during the year ended January 31, 2023 have two separate performance periods. The first tranche has a one-year performance period ending on the first anniversary of the date of grant. The second tranche has a two-year performance period ending on the second anniversary of the date of grant. Both grants include a service condition and vest on a graded vesting schedule, subject to continuous employment, over a three-year period. The fair values of the PSUs granted were determined using a Monte Carlo simulation approach. The Company issued restricted stock awards (“RSAs”) to certain employees as part of the Brandfolder acquisition which were 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. Stock options The following table includes a summary of the option activity during the year ended January 31, 2024: Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding at January 31, 2023 3,819,288 $ 23.42 5.7 $ 90,985 Granted — — Exercised (292,088) 5.66 Forfeited or canceled (10,125) 67.00 Outstanding at January 31, 2024 3,517,075 24.77 4.8 85,129 Exercisable at January 31, 2024 3,081,884 20.44 4.4 83,600 Vested and expected to vest at January 31, 2024 3,482,318 24.46 8.0 84,995 No stock options were granted during the year ended January 31, 2024. The weighted-average grant date fair value per share of stock options granted during the years ended January 31, 2023, and 2022 was $18.16 and $29.71, respectively. The total grant date fair value of stock options vested during the years ended January 31, 2024, 2023, and 2022 was $7.7 million, $9.1 million, and $10.1 million, respectively. The intrinsic value of options exercised was $10.9 million, $27.0 million, and $141.1 million during the years ended January 31, 2024, 2023, and 2022, respectively. Restricted stock units The following table includes a summary of the RSU activity during the year ended January 31, 2024: Number of Shares Weighted-Average Grant-Date Fair Value per Share Outstanding at January 31, 2023 10,975,157 $ 46.56 Granted 3,240,158 43.33 Vested (4,191,997) 46.26 Forfeited or canceled (1,224,694) 47.25 Outstanding at January 31, 2024 8,798,624 45.41 An RSU award entitles the holder to receive shares of the Company’s common stock as the award vests, which is based on continued service. Non-vested RSUs do not have non-forfeitable rights to dividends or dividend equivalents. The weighted-average grant date fair value of RSUs granted during the years ended January 31, 2024, 2023, and 2022 was $43.33, $39.16, and $68.21, respectively. The total fair value of RSUs vested during the years ended January 31, 2024, 2023, and 2022 was $193.9 million, $160.4 million, and $78.0 million, respectively. Performance share units The following table includes a summary of the PSU activity during the year ended January 31, 2024: Number of Shares Weighted-Average Grant-Date Fair Value per Share Outstanding at January 31, 2023 251,027 $ 53.34 Granted* 195,948 48.74 Vested (125,512) 53.34 Forfeited or canceled — — Outstanding at January 31, 2024 321,463 50.54 *This represents awards granted at 100% attainment. The weighted-average grant date fair value of PSUs granted during the years ended January 31, 2024 and 2023 was $48.74 and $53.34, respectively. Restricted stock awards The following table includes a summary of RSA activity during the year ended January 31, 2024: 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 January 31, 2024 — — The weighted-average grant date fair value of RSAs granted during the year ended January 31, 2021 was $46.93. No RSAs were granted during the years ended January 31, 2024, 2023, or 2022. The total fair value of RSAs vested during the years ended January 31, 2024, 2023, and 2022 was $0.9 million, $1.3 million, and $1.6 million, respectively. 2018 Employee Stock Purchase Plan 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 the 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. Prior to January 2022, each offering period commenced on March 25 and September 25. The change in offering periods required an abbreviated, one-time purchase period from September 25, 2021 through December 31, 2021 to align to the new offering periods. The purchase price for shares of common stock purchased under our ESPP is 85% of the lesser of the fair market value of our common stock on (i) the first trading day of the applicable offering period or (ii) the last trading day of the purchase period in the applicable offering period. The following table includes a summary of the activity of shares available for issuance under our 2018 Plan and our ESPP during the year ended January 31, 2024: Shares Available for Issuance 2018 Plan 2018 ESPP Balance at January 31, 2023 14,594,290 4,850,775 Authorized 6,592,251 1,318,450 Granted (3,436,106) (596,679) Forfeited 1,234,819 — Balance at January 31, 2024 18,985,254 5,572,546 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 January 31, 2024, $2.6 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 consolidated balance sheet. Valuation assumptions The fair values of employee stock options and ESPP purchase rights were estimated using a Black-Scholes option pricing model. The fair values of the PSUs were estimated using a Monte Carlo simulation valuation model. The fair values of the Company’s stock options, ESPP purchase rights, and PSUs granted during the years ended January 31, 2024, 2023, and 2022 were estimated using the following assumptions: Year Ended January 31, 2024 2023 2022 Employee Stock Options Risk-free interest rate — % 1.8%-3.7% 1.0%-1.4% Expected volatility — % 44.2%-46.3% 43.1%-43.5% Expected term (in years) — 6.25 6.25 Expected dividend yield — % — % — % Employee Stock Purchase Plan Risk-free interest rate 4.8%-5.5% 0.2%-2.5% 0.0%-0.1% Expected volatility 57.3%-70.7% 50.0%-72.8% 46.9%-68.0% Expected term (in years) 0.49 0.50 0.27-0.50 Expected dividend yield — % — % — % Performance Share Units Risk-free interest rate 4.7 % 4.3 % — % Expected volatility 50.6 % 52.5 % — % Expected volatility (S&P Software and Services Select Index) 32.4 % 31.8 % — % Expected term (in years) 2.00 1.00-2.00 — Expected dividend yield — % — % — % The risk-free interest rate used in the Black-Scholes option pricing model is based on the U.S. Treasury yield that corresponds with the expected term at the time of grant. The risk-free rate used in the Monte Carlo simulation valuation model is the continuously compounded yield on zero-coupon U.S. Treasury bonds that corresponds with the longest expected term. The expected term of an option is determined using the simplified method, which is calculated as the average of the contractual life and the vesting period. The expected term for the ESPP purchase rights is estimated using the offering period, which is typically six months. The expected term for the PSUs is estimated by using the related performance period. We estimate volatility for options and PSUs using volatilities of a group of public companies in a similar industry, stage of life cycle, and size; and volatility of ESPP purchase rights using our own volatility history. The Company does not currently pay dividends and does not expect to for the foreseeable future. In addition to the assumptions used in the Black-Scholes option pricing and the Monte Carlo simulation models, we must also estimate a forfeiture rate to calculate the share-based compensation expense for awards. Our forfeiture rate is derived from historical employee termination behavior. If the actual number of forfeitures differs from these estimates, additional adjustments to compensation expense will be required. Share-based compensation expense Share-based compensation expense included in the consolidated statements of operations was as follows (in thousands): Year Ended January 31, 2024 2023 2022 Cost of subscription revenue $ 13,069 $ 11,248 $ 6,274 Cost of professional services revenue 7,469 6,404 3,788 Research and development 71,341 62,165 41,218 Sales and marketing 73,545 63,224 40,632 General and administrative 40,782 33,514 22,988 Total share-based compensation $ 206,206 $ 176,555 $ 114,900 We have excluded $4.9 million, $3.5 million, and $2.0 million of capitalized software development costs from stock-based compensation expense for the years ended January 31, 2024, 2023 and 2022, respectively. As of January 31, 2024, there was a total of $381.3 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 | 12 Months Ended |
Jan. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of loss before income tax provision were as follows (in thousands): Year Ended January 31, 2024 2023 2022 United States $ (101,173) $ (216,167) $ (174,043) Foreign 5,031 3,377 3,242 Loss before income tax provision $ (96,142) $ (212,790) $ (170,801) The income tax provision consisted of the following (in thousands): Year Ended January 31, 2024 2023 2022 Current: Federal $ 4,384 $ 876 $ — State 1,283 1,239 175 Foreign 3,367 1,085 49 Total current tax provision 9,034 3,200 224 Deferred and other: Federal 206 — — State 144 — — Foreign (895) (351) 72 Total deferred tax provision (benefit) (545) (351) 72 Total income tax provision $ 8,489 $ 2,849 $ 296 Income tax expense for the year ended January 31, 2024 was primarily related to taxable profits in the U.S. as a result of the capitalization of research and experimental expenditures under IRC Section 174, Base Erosion and Anti-Abuse Tax, and income taxes in foreign jurisdictions. Income tax expense for the year ended January 31, 2023 was primarily related to taxable profits in the U.S. as a result of the capitalization of research and experimental expenditures under IRC Section 174 as well as income taxes in foreign jurisdictions. Income tax expense for the year ended January 31, 2022 was recognized primarily due to income taxes in foreign jurisdictions and state income taxes. The reconciliation of federal statutory income tax to the Company’s provision for income taxes is as follows (in thousands): Year Ended January 31, 2024 2023 2022 Income tax at statutory federal rate $ (20,190) $ (44,686) $ (35,868) Tax credits (8,839) (7,660) (5,697) Intangible basis adjustment (3,054) — — Change in valuation allowance 26,335 44,898 71,738 Non-deductible executive compensation 4,432 685 — Base Erosion Anti-Avoidance Tax 4,140 — — Share-based compensation 3,332 7,133 (30,092) State taxes 1,158 981 139 Foreign earnings taxed in the U.S. 906 2,276 — Other 269 (778) 76 Total income tax provision $ 8,489 $ 2,849 $ 296 Deferred income taxes reflect the net tax effects of loss and credit carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of temporary differences and related deferred tax assets and liabilities were as follows (in thousands): January 31, 2024 2023 Deferred tax assets: Deferred revenue $ 144,931 $ 117,579 Net operating loss carryforwards 99,230 121,171 Capitalized research & experimental expenditures 59,819 45,906 Tax credits 37,664 29,267 Lease liabilities 12,520 17,273 Share-based compensation 16,141 17,282 Accrued compensation 10,315 8,983 Other 1,529 982 Total deferred tax assets 382,149 358,443 Valuation allowance (329,141) (302,196) Total deferred tax assets, net 53,008 56,247 Deferred tax liabilities: Capitalized commissions (37,283) (30,836) Lease right-of-use assets (10,199) (14,320) Property and equipment (3,031) (2,250) Intangibles (1,573) (7,637) Other (162) (989) Total deferred tax liabilities (52,248) (56,032) Net deferred tax assets $ 760 $ 215 Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three-year period ended January 31, 2024. Such objective evidence limits the ability to consider other subjective evidence, such as the Company’s projections for future growth. On the basis of this evaluation, the Company has established a full valuation allowance equal to its U.S. net deferred tax assets due to the uncertainty of future realization of the net deferred tax assets. The valuation allowance increased by $26.9 million during the year ended January 31, 2024. The increase in the valuation allowance was primarily related to an increase in deferred tax assets related to deferred revenue and capitalization of research and experimental expenditures required under IRC Section 174, offset by a decrease in deferred tax assets related to net operating losses. As of January 31, 2024, we had NOLs of $388.6 million for U.S. federal income taxes and $291.7 million for state and local income taxes. The U.S. federal NOLs may be carried forward indefinitely. The state NOL carryforwards will begin to expire in 2025. As of January 31, 2024, the Company’s tax credit carryforwards for income tax purposes were approximately $37.7 million net of uncertain tax positions for research and development credits. If not used, the tax credit carryforwards will begin to expire in 2038. The Company’s operations in Costa Rica are located in a Free Trade Zone (“FTZ”) which entitles the Company to certain tax incentives including a tax holiday from corporate income tax or a reduced corporate tax rate. The FTZ benefits are conditional on the Company meeting certain employment and investment thresholds. These tax incentives are effective into 2034 and may be extended if additional requirements are satisfied. The impact of the tax holiday was not material. Accounting guidance for income taxes requires a deferred tax liability to be established for the U.S. tax impact of undistributed earnings of foreign subsidiaries unless it can be shown that these earnings will be permanently reinvested outside the U.S. If the Company’s foreign earnings were to be repatriated in the future, the estimated U.S. tax liability would be insignificant. The calculation of the Company’s tax obligations involves dealing with uncertainties in the application of complex tax laws and regulations. ASC 740, Income Taxes , provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, on the basis of the technical merits. The Company has assessed its income tax positions and recorded tax benefits for all years subject to examination, based upon its evaluation of the facts, circumstances, and information available at each period end. For those tax positions where the Company has determined there is a greater than 50% likelihood that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is determined there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit has been recognized. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in thousands): Year Ended January 31, 2024 2023 2022 Balance, beginning of the year $ 9,883 $ 7,204 $ 5,283 Increases to tax positions taken during the current year 2,486 2,218 2,010 Increases to tax positions taken in prior years 569 461 — Decreases to tax positions taken in prior years — — (89) Balance, end of year $ 12,938 $ 9,883 $ 7,204 Although the Company believes that it has adequately reserved for its uncertain tax positions, it can provide no assurance that the final tax outcome of these matters will not be materially different. The Company makes adjustments to its reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made. No liability was recorded for uncertain tax positions, or related interest or penalties, as of January 31, 2024 or 2023. As of January 31, 2024 and 2023, the Company had $12.9 million and $9.9 million of unrecognized tax benefits, respectively, of which the total amount that would impact the effective tax rate, if recognized, is $12.9 million and $9.9 million, respectively. Any impact on the effective tax rate for unrecognized tax benefits would be offset by the impact of the Company's full valuation allowance on its U.S. federal and state deferred tax assets. In the U.S., the Company’s tax years from 2005 to present remain effectively open to examination by the Internal Revenue Service, as well as various state and foreign jurisdictions. |
Leases
Leases | 12 Months Ended |
Jan. 31, 2024 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases primarily related to corporate offices, and finance leases related to computer equipment. Our finance lease ROU assets related to computer equipment are included in property and equipment, net in the consolidated balance sheets. Our leases have remaining lease terms of less than one year to five years, some of which include options to extend the leases for up to five years. The components of lease expense recorded in the consolidated statements of operations were as follows (in thousands): Year Ended January 31, 2024 2023 2022 Operating lease cost $ 15,486 $ 22,508 $ 18,739 Finance lease cost: Amortization of assets 73 — — Interest on lease liabilities 23 — — Short-term lease cost 509 950 371 Variable lease cost 3,318 2,833 2,850 Sublease income (2,294) (527) — Total lease costs $ 17,115 $ 25,764 $ 21,960 Other information related to leases was as follows (in thousands): Year Ended January 31, 2024 2023 2022 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows related to operating leases $ 18,978 $ 19,735 $ 17,610 Operating cash flows related to finance leases 23 — — Financing cash flows related to finance leases 34 — — Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 1,666 7,230 994 Finance leases 693 — — Right-of-use assets reductions related to operating leases 4,451 4,696 — Supplemental balance sheet information related to our leases was as follows: January 31, 2024 2023 Weighted-average remaining lease term (in years) Operating leases 3.9 4.5 Finance leases 2.7 0.0 Weighted-average discount rate Operating leases 5.5 % 5.3 % Finance leases 9.9 % — % As of January 31, 2024, remaining maturities of lease liabilities were as follows (in thousands): Operating Leases Finance Leases Fiscal 2025 $ 16,531 $ 270 Fiscal 2026 14,724 270 Fiscal 2027 10,769 225 Fiscal 2028 6,341 — Fiscal 2029 5,296 — Thereafter 1,357 — Total lease payments 55,018 765 Less: imputed interest (5,878) (94) Total $ 49,140 $ 671 As of January 31, 2024, the future total minimum sublease payments to be received were as follows (in thousands): Sublease Receipts Fiscal 2025 $ 2,732 Fiscal 2026 2,154 Fiscal 2027 700 Fiscal 2028 — Fiscal 2029 — Thereafter — Total $ 5,586 The Company has vacated certain of its previous corporate offices and entered into sublease agreements for certain fully furnished floors. We evaluated the associated asset groups for impairment, which included the ROU assets and underlying property and equipment on each subleased floor. We compared the expected future undiscounted cash flows for each subleased floor to its carrying value and determined that the respective asset groups were not recoverable. We then calculated the fair values based on the present value of the estimated cash flows from each sublease for the remaining lease term. We compared the estimated fair values to the carrying values, which resulted in a $1.4 million impairment charge during the year ended January 31, 2024, and a $1.5 million impairment charge during the year ended January 31, 2023. The impairment charges were included in general and administrative expenses in the consolidated statements of operations. During the year ended January 31, 2023, the Company also abandoned certain floors in Bellevue, Washington for which there was no intent or ability to sublease, and terminated the operating lease in Denver, Colorado. These two real estate restructuring activities led to lease charges of $3.5 million, which were allocated based on headcount to each cost of revenue and operating expense category in the consolidated statements of operations. |
Leases | Leases The Company has operating leases primarily related to corporate offices, and finance leases related to computer equipment. Our finance lease ROU assets related to computer equipment are included in property and equipment, net in the consolidated balance sheets. Our leases have remaining lease terms of less than one year to five years, some of which include options to extend the leases for up to five years. The components of lease expense recorded in the consolidated statements of operations were as follows (in thousands): Year Ended January 31, 2024 2023 2022 Operating lease cost $ 15,486 $ 22,508 $ 18,739 Finance lease cost: Amortization of assets 73 — — Interest on lease liabilities 23 — — Short-term lease cost 509 950 371 Variable lease cost 3,318 2,833 2,850 Sublease income (2,294) (527) — Total lease costs $ 17,115 $ 25,764 $ 21,960 Other information related to leases was as follows (in thousands): Year Ended January 31, 2024 2023 2022 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows related to operating leases $ 18,978 $ 19,735 $ 17,610 Operating cash flows related to finance leases 23 — — Financing cash flows related to finance leases 34 — — Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 1,666 7,230 994 Finance leases 693 — — Right-of-use assets reductions related to operating leases 4,451 4,696 — Supplemental balance sheet information related to our leases was as follows: January 31, 2024 2023 Weighted-average remaining lease term (in years) Operating leases 3.9 4.5 Finance leases 2.7 0.0 Weighted-average discount rate Operating leases 5.5 % 5.3 % Finance leases 9.9 % — % As of January 31, 2024, remaining maturities of lease liabilities were as follows (in thousands): Operating Leases Finance Leases Fiscal 2025 $ 16,531 $ 270 Fiscal 2026 14,724 270 Fiscal 2027 10,769 225 Fiscal 2028 6,341 — Fiscal 2029 5,296 — Thereafter 1,357 — Total lease payments 55,018 765 Less: imputed interest (5,878) (94) Total $ 49,140 $ 671 As of January 31, 2024, the future total minimum sublease payments to be received were as follows (in thousands): Sublease Receipts Fiscal 2025 $ 2,732 Fiscal 2026 2,154 Fiscal 2027 700 Fiscal 2028 — Fiscal 2029 — Thereafter — Total $ 5,586 The Company has vacated certain of its previous corporate offices and entered into sublease agreements for certain fully furnished floors. We evaluated the associated asset groups for impairment, which included the ROU assets and underlying property and equipment on each subleased floor. We compared the expected future undiscounted cash flows for each subleased floor to its carrying value and determined that the respective asset groups were not recoverable. We then calculated the fair values based on the present value of the estimated cash flows from each sublease for the remaining lease term. We compared the estimated fair values to the carrying values, which resulted in a $1.4 million impairment charge during the year ended January 31, 2024, and a $1.5 million impairment charge during the year ended January 31, 2023. The impairment charges were included in general and administrative expenses in the consolidated statements of operations. During the year ended January 31, 2023, the Company also abandoned certain floors in Bellevue, Washington for which there was no intent or ability to sublease, and terminated the operating lease in Denver, Colorado. These two real estate restructuring activities led to lease charges of $3.5 million, which were allocated based on headcount to each cost of revenue and operating expense category in the consolidated statements of operations. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease commitments We have entered into various non-cancelable lease agreements related to our corporate offices and certain equipment. For additional information regarding our lease agreements, see Note 13, Leases . Purchase commitments We have entered into certain non-cancelable multi-year agreements with third-party providers primarily for our use of cloud-based hosting and data services. As of January 31, 2024, our future estimated purchase commitments related to these contracts by fiscal year are as follows (in thousands): Fiscal 2025 $ 67,664 Fiscal 2026 48,700 Fiscal 2027 1,750 Fiscal 2028 — Fiscal 2029 — Thereafter — Total $ 118,114 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 were defendants. During the year ended January 31, 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. During the year ended January 31, 2022, 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 and settled an additional insurance reimbursement claim related to the case, which we included as an insurance reimbursement receivable of $3.9 million in prepaid and other current assets in our consolidated balance sheets as of January 31, 2023. During the year ended January 31, 2024, the $3.9 million was collected. The impact of these insurance recoveries is included in general and administrative expenses in our consolidated statement of operations. From time-to-time, in the normal course of business, the Company may be subject to various other legal matters such as threatened or pending claims or proceedings. Although management currently believes that resolution of such matters, individually and in the aggregate, will not have a material impact on our financial position, results of operations, or cash flows, these matters are subject to inherent uncertainties, and management’s view of these matters may change in the future. |
401(k) and Pension Plans
401(k) and Pension Plans | 12 Months Ended |
Jan. 31, 2024 | |
Retirement Benefits [Abstract] | |
401(k) and Pension Plans | 401(k) and Pension Plans In March 2008, the Company initiated a 401(k) plan for the benefit of all United States employees. In the second quarter of fiscal 2021, we began to match 50% of each participant’s contribution up to a maximum of 6% of the participant’s eligible pay during the period. We recognized an expense of $9.9 million, $9.5 million, and $6.7 million related to matching contributions during the years ended January 31, 2024, 2023, and 2022, respectively. In January 2018, the Company began contributing to a pension plan for the benefit of its employees based in the United Kingdom. In January 2020, the Company began contributing to a pension plan for the benefit of its employees based in Australia. We recognized an expense related to employer contributions of $3.0 million, $2.5 million, and $1.6 million during the years ended January 31, 2024, 2023, and 2022, respectively. |
Geographic Information
Geographic Information | 12 Months Ended |
Jan. 31, 2024 | |
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): Year Ended January 31, 2024 2023 2022 United States $ 809,036 $ 640,604 $ 454,246 EMEA 77,418 65,574 51,603 APJ 35,189 29,946 21,326 Americas other than the United States 36,695 30,791 23,657 Total $ 958,338 $ 766,915 $ 550,832 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): January 31, 2024 2023 United States $ 45,743 $ 60,246 EMEA 2,266 5,583 APJ 3,793 4,510 Americas other than the United States 573 274 Total $ 52,375 $ 70,613 |
Supplemental Consolidated Finan
Supplemental Consolidated Financial Statement Information | 12 Months Ended |
Jan. 31, 2024 | |
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): January 31, 2024 2023 Prepaid expenses $ 57,685 $ 45,877 Other current assets 6,681 9,186 Total prepaid expense and other current assets $ 64,366 $ 55,063 Restricted cash Restricted cash, which primarily relates to Australian employee contributions to our ESPP, was $0.3 million, $0.6 million, and $0.6 million as of January 31, 2024, 2023, and 2022, respectively. Cash as reported on the consolidated statements of cash flows includes the aggregate amounts of cash, cash equivalents and restricted cash as shown on the consolidated balance sheets and consists of the following (in thousands): January 31, 2024 2023 2022 Cash and cash equivalents $ 282,094 $ 223,156 $ 449,074 Restricted cash included in prepaid expenses and other current assets 329 404 589 Restricted cash 19 197 17 Total cash, cash equivalents, and restricted cash $ 282,442 $ 223,757 $ 449,680 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Pay vs Performance Disclosure | |||
Net loss | $ (104,631) | $ (215,639) | $ (171,097) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 12 Months Ended |
Jan. 31, 2024 shares | Jan. 31, 2024 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 | |
Brent Frei [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | Rule 10b5-1 Plan Elections During the fiscal quarter ended January 31, 2024, our Chief Financial Officer, Pete Godbole, and a member of our Board, Brent Frei, each 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 arrangements included representations from each of Mr. Godbole and Mr. Frei to the broker administering the plan that they were not in possession of any material nonpublic information regarding the Company or the securities subject to the plan. Similar representations were 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 the adopting individuals was unaware, or with respect to any material nonpublic information acquired by the adopting individuals 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 January 5, 2024 38,910 (3) January 5, 2024 - June 21, 2024 N/A Brent Frei - Director December 20, 2023 665,000 December 20, 2023 - February 17, 2025 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 | Brent Frei | |
Title | Director | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | December 20, 2023 | |
Arrangement Duration | 425 days | |
Aggregate Available | 665,000 | 665,000 |
Pete Godbole [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | Rule 10b5-1 Plan Elections During the fiscal quarter ended January 31, 2024, our Chief Financial Officer, Pete Godbole, and a member of our Board, Brent Frei, each 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 arrangements included representations from each of Mr. Godbole and Mr. Frei to the broker administering the plan that they were not in possession of any material nonpublic information regarding the Company or the securities subject to the plan. Similar representations were 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 the adopting individuals was unaware, or with respect to any material nonpublic information acquired by the adopting individuals 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 January 5, 2024 38,910 (3) January 5, 2024 - June 21, 2024 N/A Brent Frei - Director December 20, 2023 665,000 December 20, 2023 - February 17, 2025 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 | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | January 5, 2024 | |
Arrangement Duration | 168 days | |
Aggregate Available | 38,910 | 38,910 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in th e United States of America (“GAAP”), and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding financial reporting. Certain prior period amounts have been reclassified to conform to current period presentation. These amounts were not material to any of the periods presented. The Company’s fiscal year ends on January 31. The 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. |
Use of estimates | Use of estimates The preparation of the 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 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, and we evaluate these estimates on an ongoing basis . 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. During the year ended January 31, 2023, the Company completed an assessment of the amortization period for deferred sales commission costs and determined that it should increase the period over which we amortize deferred commissions from three years to four years. This change in accounting estimate was effective August 1, 2022 and is being accounted for prospectively in the consolidated financial statements. For the year ended January 31, 2024, 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. For the year ended January 31, 2023, the change in amortization period resulted in a benefit to both sales and marketing expense and net loss of approximately 2% of total revenue or $0.09 per basic and diluted share. The effect of this change in estimate is based on the carrying value of deferred commissions included in the Company’s consolidated balance sheets as of July 31, 2022 and those deferred during subsequent periods. |
Segment information | Segment information The Company operates as one operating segment. The Company’s chief operating decision maker is its Chief Executive Officer, who reviews consolidated financial information for purposes of making operating decisions, assessing financial performance, and allocating resources. |
Revenue recognition, Deferred revenue, Deferred commissions, and Overhead allocations | Revenue recognition The Company derives its revenue primarily from subscription services and professional services. Revenue is recognized when control of these services is transferred to the Company ’ s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services, net of any sales taxes. The Company determines revenue recognition through the following steps: • identification of the contract, or contracts, with a customer; • identification of the performance obligations in the contract; • determination of the transaction price; • allocation of the transaction price to the performance obligations in the contract; and • recognition of revenue when, or as, the Company satisfies a performance obligation. Subscription revenue Subscription revenue primarily consists of fees from customers for access to the Company’s cloud-based platform and involves a significant volume of transactions. The Company uses automated systems to process and record these transactions. S ubscription revenue is recognized on a ratable basis over the subscription contract term, beginning on the date the access to the Company ’ s platform is provided, as no implementation work is required, if consideration the Company is entitled to receive is probable of collection. Subscription contracts generally have terms of one year, are billed in advance, and are non-cancelable. The subscription arrangements do not allow the customer the contractual right to take possession of the platform; as such, the arrangements are considered to be service contracts. Certain of the Company ’ s subscription contracts contain performance guarantees related to service continuity. To date, refunds related to such guarantees have been immaterial in all periods presented. On occasion, the Company sells its subscriptions to third-party resellers. The price at which the Company sells to the reseller is typically discounted, as compared to the price at which the Company would sell to an end customer, in order to enable the reseller to realize a margin on the eventual sale to the end customer. As our pricing to the reseller is fixed, and the Company does not have visibility into the pricing provided by the reseller to the end customer, the revenue is recorded net of any reseller margin. Professional services revenue Professional services revenue primarily includes fees for consulting and training services. The Company’s consulting services consist of platform configuration and use case optimization, and are primarily invoiced on a time and materials basis, monthly in arrears. Consulting services revenue is recognized over time, as those services are delivered. Occasionally, consulting engagements are provided for a fixed fee. In these cases, revenue is recognized over time, based on the proportion of hours of work performed, compared to the total hours expected to complete the engagement. Configuration and use case optimization services do not result in significant customization or modification of the software platform or user interface. Training services are billed in advance, on a fixed-fee basis, and revenue is recognized after the training program is delivered, or after the customer’s right to receive training services expires. Associated out-of-pocket travel expenses related to the delivery of professional services are typically reimbursed by the customer. Out-of-pocket expense reimbursements are recognized as revenue at the point in time, or as the distinct performance obligation to which they relate is delivered. Out-of-pocket expenses are recognized as cost of professional services and are expensed as incurred. Contracts with multiple performance obligations Some of the Company’s contracts with customers contain multiple performance obligations. The Company accounts for individual performance obligations separately, as they have been determined to be distinct, i.e., the services are separately identifiable from other items in the arrangement and the customer can benefit from them on their own or with other resources that are readily available to the customer. The transaction price is allocated to the distinct performance obligations on a relative stand-alone selling price basis. Stand-alone selling prices are determined based on the prices at which the Company separately sells subscription, consulting, and training services, and based on t he Company’s overall pricing objectives, taking into consideration market conditions, value of t he Company’s contracts, the types of offerings sold, customer demographics, and other factors. Accounts receivable and allowance for doubtful accounts Accounts receivable are primarily comprised of trade receivables that are recorded at the invoice amount, net of an allowance for doubtful accounts. Subscription fees billed in advance of the related subscription term represent contract liabilities and are presented as accounts receivable and deferred revenues upon establishment of the unconditional right to invoice, typically upon signing of the non-cancelable service agreement. Our typical payment terms provide for customer payment within 30 days of the invoice date. The allowance for doubtful accounts is based on the Company’s estimated expected credit losses derived upon assessment of various factors including historical trends on collectibility, composition of accounts receivable by aging, current market conditions, reasonable and supportable forecasts of future economic conditions, and other factors. The estimated credit losses are recorded to the allowance for doubtful accounts in the consolidated balance sheets, with an offsetting decrease in related deferred revenue and a reduction of revenue or charge to general and administrative expense in the consolidated statements of operations. Activity related to the Company’s allowance for doubtful accounts was as follows (in thousands): January 31, 2024 2023 2022 Beginning balance $ 6,285 $ 7,561 $ 6,933 Additions 8,631 5,440 7,700 Write-offs (8,356) (6,716) (7,072) Ending balance $ 6,560 $ 6,285 $ 7,561 Deferred revenue Deferred revenue consists of customer billings and payments in advance of revenue being recognized from the Company’s contracts. The Company typically invoices its customers annually in advance for its subscription-based contracts. Deferred revenue and accounts receivable are recorded at the beginning of a new subscription term. For some customers, the Company invoices in monthly, quarterly, semi-annual, or multi-year installments and, therefore, the deferred revenue balance does not necessarily represent the total contract value of all non-cancelable subscription agreements. Deferred revenue anticipated to be recognized during the succeeding 12-month period is recorded as a current liability and the remaining portion is recorded as deferred revenue, non-current in our consolidated balance sheets. Deferred commissions The majority of sales commissions earned by the Company ’s sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions are primarily paid on initial contracts and on any upsell contracts with a customer. Sales commissions and related payroll taxes and incremental fringe benefits are deferred and then amortized on a straight-line basis over a period of benefit that the Company has determined to be four years. The Company determined the period of benefit by taking into consideration its customer contracts, expected customer life, the expected life of its technology, and other factors. Amortization expense is included in sales and marketing expense in the consolidated statements of operations. The Company evaluates the period of benefit and tests for impairment on a quarterly basis and whenever events or changes in circumstances occur that could impact the recoverability of these assets. Overhead allocations |
Cash, cash equivalents, and restricted cash | Cash, cash equivalents, and restricted cash The Company considers all highly liquid investments with an original maturity of three months or less from date of purchase to be cash equivalents. Cash and cash equivalents are recorded at cost, which approximates fair value. Interest earned on cash and cash equivalents is recorded in interest income in the consolidated statements of operations. The Company’s restricted cash primarily relates to Australian employee contributions to our ESPP. See Note 17, Supplemental Consolidated Financial Statement Information, |
Short-term investments | Short-term investments The Company’s short-term investments primarily consist of U.S. Treasury securities, corporate bonds, commercial paper, and agency securities that have original maturities greater than three months at the time of purchase. These investments are classified as available-for-sale securities and we re-evaluate such classification as of each balance sheet date. The Company considers all investments as available for use in current operations, including those with maturity dates beyond one year, and therefore classifies these securities as current assets in its consolidated balance sheets. |
Business combinations | Business combinations When we acquire a business, the purchase price is allocated to the assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. Any residual purchase price is recorded as goodwill. The allocation of the purchase price requires management to make significant estimates in determining the fair values of the assets acquired and liabilities assumed, especially with respect to the identifiable intangible assets. These estimates can include, but are not limited to, the cash flows that an asset is expected to generate in the future, the appropriate weighted-average cost of capital, the cost savings expected to be derived from acquiring an asset, its expected remaining economic useful life, and the appropriate discount rate to employ in the valuation analyses in order to properly account for the risk associated with the asset’s expected future cash flows. These estimates are inherently uncertain. During the measurement period, which may be up to one year from the acquisition date, adjustments to the fair values of these tangible and intangible assets acquired and liabilities assumed may be recorded, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statements of operations. |
Goodwill and acquired intangible assets | Goodwill and acquired intangible assets The Company evaluates goodwill for impairment at the reporting unit level on an annual basis (September 1), or whenever events or changes in circumstances indicate that impairment may exist. Events or changes in circumstances which could trigger an impairment review include, but are not limited to, a significant adverse change in customer demand or business climate or a significant decrease in expected cash flows. When evaluating goodwill for impairment, the Company may first perform a qualitative assessment to determine whether it is more likely than not that a reporting unit is impaired. If the Company does not perform a qualitative assessment, or if the Company determines that it is not more likely than not that the fair value of the reporting unit exceeds its carrying amount, the Company calculates the estimated fair value of the reporting unit. If the carrying amount of the reporting unit exceeds the estimated fair value, an impairment charge is recorded to reduce the carrying value to the estimated fair value. No impairment charges were recorded for the years ended January 31, 2024, 2023, or 2022. Acquired intangible assets consist of identifiable intangible assets, primarily software technology and customer relationships, resulting from our acquisitions. Intangible assets are recorded at fair value on the date of acquisition and amortized over their estimated useful lives. |
Property and equipment | Property and equipment Leasehold improvements are amortized over the shorter of the expected useful lives of the assets or the related lease term. Maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. |
Internal-use software development costs | Internal-use software development costs The Company capitalizes certain qualifying costs incurred during the application development stage in connection with the development of internal-use software. Costs related to preliminary project activities and post-implementation activities are expensed in research and development (“R&D”) as incurred. R&D expenses consist primarily of employee-related costs, software-related costs, allocated overhead, and costs of outside services used to supplement our internal staff. Internal-use software costs of $15.9 million and $11.0 million were capitalized in the years ended January 31, 2024 and 2023, respectively. All capitalized costs related to costs incurred during the application development stage of software development for the Company’s platform to which subscriptions are sold. |
Leases | Leases The Company determines if an arrangement is a lease at inception, and leases are classified at commencement as either operating or finance leases. Finance lease assets are included in property and equipment, net on our consolidated balance sheets. Right-of-use (“ROU”) assets and lease liabilities are recognized at commencement date based on the present value of the future minimum lease payments over the lease term. ROU assets also include any lease payments made. As our leases do not provide an implicit rate, we estimate our incremental borrowing rate based on information available at the commencement date in determining the present value of future payments. This rate is an estimate of the collateralized borrowing rate the Company would incur on its future lease payments over a similar term based on the information available at commencement date. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. At January 31, 2024, we did not include any options to extend leases in our lease terms as we were not reasonably certain to exercise them. The Company’s lease agreements do not contain residual value guarantees or covenants. The Company utilizes certain practical expedients and policy elections available under the lease accounting standard. Leases with a term of one year or less are not recognized on our consolidated balance sheets; we recognize our operating lease expense on a straight-line basis over the lease term. Additionally, we have elected to include non-lease components with lease components for the purpose of calculating lease ROU assets and liabilities, to the extent that they are fixed. Non-lease components that are not fixed are expensed as incurred as variable lease payments. Our operating leases typically include non-lease components such as common area maintenance costs. The Company accounts for subleases from the perspective of a lessor. The Company has various subleases, which are classified as operating leases. The Company records sublease income as a reduction of lease expense using the straight-line method over the term of the sublease. |
Impairment of long-lived assets | Impairment of long-lived assets Long-lived assets, such as property and equipment, intangible assets, operating lease ROU assets, and internal-use software development costs, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Recoverability of an asset group is measured by comparing the carrying amount to the estimated undiscounted future cash flows expected to be generated. When the carrying amount exceeds the undiscounted cash flows, the assets are adjusted to their estimated fair value and an impairment charge is recognized as the amount by which the carrying amount exceeds its fair value. We recorded an impairment charge of $1.4 million and $1.5 million during the years ended January 31, 2024 and 2023 , respectively, related to the ROU assets and underlying property and equipment associated with our subleased office spaces as described further in Note 13, Leases |
Self-funded health insurance | Self-funded health insurance The Company’s health insurance plan is partially self-funded. To reduce its risk related to high-dollar claims, the Company maintains individual and aggregate stop-loss insurance. The Company estimates its exposure for claims incurred but not yet paid at the end of each reporting period and uses historical claims data to estimate its self-insurance liability. As of January 31, 2024 and 2023 |
Advertising expenses | Advertising expenses |
Share-based compensation | Share-based compensation The Company measures and recognizes compensation expense for all share-based awards granted to employees and directors, based on the estimated fair value of the award on the date of grant. We use the Black-Scholes option pricing model to measure the fair values of stock option awards and shares granted under our ESPP. The fair values of RSUs are measured using the closing market price of the Company’s common stock on the date of the grant. The Company uses the Monte Carlo simulation technique to calculate the fair values of market-based awards, which include our PSUs. |
Income taxes | Income taxes Income taxes are accounted for using the asset and liability method. Under this method, the Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. The Company records a valuation allowance to reduce deferred tax assets to an amount for which realization is more likely than not. |
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. |
Net loss per share | Net loss per share |
Foreign currency translation | Foreign currency translation |
Recently adopted accounting pronouncements and Recent accounting pronouncements not yet adopted | Recently adopted accounting pronouncements There were no recent accounting pronouncements, changes in accounting pronouncements, or recently adopted accounting guidance during the year ended January 31, 2024 that had a material impact on our consolidated financial statements. Recent accounting pronouncements not yet adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The new guidance requires public entities to disclose information about their reportable segments’ significant expenses and other segment items on an interim and annual basis. Public entities with a single reportable segment are required to apply the disclosure requirements in ASU 2023-07, as well as all existing segment disclosures and reconciliation requirements in ASC 280, on an interim and annual basis. The standard is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact of adopting ASU 2023-07. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact of adopting ASU 2023-09. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Allowance for Doubtful Accounts | Activity related to the Company’s allowance for doubtful accounts was as follows (in thousands): January 31, 2024 2023 2022 Beginning balance $ 6,285 $ 7,561 $ 6,933 Additions 8,631 5,440 7,700 Write-offs (8,356) (6,716) (7,072) Ending balance $ 6,560 $ 6,285 $ 7,561 |
Schedule of Restricted Cash and Cash Equivalents | consists of the following (in thousands): January 31, 2024 2023 2022 Cash and cash equivalents $ 282,094 $ 223,156 $ 449,074 Restricted cash included in prepaid expenses and other current assets 329 404 589 Restricted cash 19 197 17 Total cash, cash equivalents, and restricted cash $ 282,442 $ 223,757 $ 449,680 |
Schedule of Property and Equipment, Useful Lives | Depreciation is computed using the straight-line method over the following estimated useful lives: Computer equipment 3 years Computer software 3 years Furniture and fixtures 5-7 years Property and equipment, net consists of the following (in thousands): January 31, 2024 2023 Computer equipment $ 12,674 $ 12,954 Computer software, developed 42,941 33,260 Furniture and fixtures 5,935 6,526 Leasehold improvements 9,112 9,612 Total property and equipment 70,662 62,352 Less: accumulated depreciation (28,300) (22,957) Total property and equipment, net $ 42,362 $ 39,395 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
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): Year Ended January 31, 2024 2023 2022 Numerator: Net loss $ (104,631) $ (215,639) $ (171,097) Denominator: Weighted-average shares outstanding 134,507 130,071 125,632 Net loss per share, basic and diluted $ (0.78) $ (1.66) $ (1.36) |
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): Year Ended January 31, 2024 2023 2022 Shares subject to outstanding common stock awards 12,637 15,045 11,855 Shares issuable pursuant to the 2018 Employee Stock Purchase Plan 331 386 52 Total potentially dilutive shares 12,968 15,431 11,907 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Securities Available For Sale | 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): January 31, 2024 Amortized Cost* Unrealized Gains Unrealized Losses Estimated Fair Value Cash equivalents: Money market funds $ 79,082 $ — $ — $ 79,082 Commercial paper 4,497 — — 4,497 Total cash equivalents 83,579 — — 83,579 Short-term investments: Corporate bonds 99,547 158 (9) 99,696 U.S. Treasury securities 169,825 123 — 169,948 Commercial paper 57,755 — — 57,755 Agency securities 19,282 21 (1) 19,302 Total short-term investments 346,409 302 (10) 346,701 Total $ 429,988 $ 302 $ (10) $ 430,280 *Excludes interest receivable of $1.5 million, which is included in Prepaid expenses and other current assets on the 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 The following table presents the contractual maturities of the Company’s short-term investments (in thousands): January 31, 2024 Amortized Cost Estimated Fair Value Due within one year $ 312,314 $ 312,508 Due between one to five years 34,095 34,193 Total $ 346,409 $ 346,701 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
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 indicates the fair value hierarchy of the valuation inputs used (in thousands): January 31, 2024 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 79,082 $ — $ — $ 79,082 Commercial paper — 4,497 — 4,497 Total cash equivalents 79,082 4,497 — 83,579 Short-term investments: Corporate bonds — 99,696 — 99,696 U.S. Treasury securities — 169,948 — 169,948 Commercial paper — 57,755 — 57,755 Agency securities — 19,302 — 19,302 Total short-term investments — 346,701 — 346,701 Total assets $ 79,082 $ 351,198 $ — $ 430,280 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 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Depreciation is computed using the straight-line method over the following estimated useful lives: Computer equipment 3 years Computer software 3 years Furniture and fixtures 5-7 years Property and equipment, net consists of the following (in thousands): January 31, 2024 2023 Computer equipment $ 12,674 $ 12,954 Computer software, developed 42,941 33,260 Furniture and fixtures 5,935 6,526 Leasehold improvements 9,112 9,612 Total property and equipment 70,662 62,352 Less: accumulated depreciation (28,300) (22,957) Total property and equipment, net $ 42,362 $ 39,395 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Business Combinations [Abstract] | |
Schedule of Assets Acquired and Liabilities Assumed | The following table summarizes the final 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) | 12 Months Ended |
Jan. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill during the years ended January 31, 2024 and 2023 were as follows (in thousands): Goodwill balance as of January 31, 2022 $ 125,605 Additions and measurement period adjustments - acquisition of Outfit 16,434 Effects of foreign currency translation 376 Goodwill balance as of January 31, 2023 142,415 Effects of foreign currency translation (938) Goodwill balance as of January 31, 2024 $ 141,477 |
Schedule of Finite-Lived Intangible Assets | The following table presents the components of net intangible assets (in thousands): January 31, 2024 January 31, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Software technology $ 28,491 $ (20,231) $ 8,260 $ 28,673 $ (14,547) $ 14,126 Customer relationships 34,072 (16,941) 17,131 34,186 (12,265) 21,921 Trade names 4,100 (1,601) 2,499 4,100 (1,157) 2,943 Patents 170 (144) 26 170 (135) 35 Domain names 44 — 44 44 — 44 Total $ 66,877 $ (38,917) $ 27,960 $ 67,173 $ (28,104) $ 39,069 The components of intangible assets acquired as of the periods presented were as follows (dollars in thousands): January 31, 2024 January 31, 2023 Net Carrying Amount Weighted Average Life (Years) Net Carrying Amount Weighted Average Life (Years) Software technology $ 8,260 2.1 $ 14,126 2.8 Customer relationships 17,131 3.7 21,921 4.7 Trade names 2,499 5.6 2,943 6.6 Total $ 27,890 3.4 $ 38,990 4.2 |
Schedule of Estimated Remaining Amortization Expense for Intangible Assets | As of January 31, 2024, estimated remaining amortization expense for the finite-lived intangible assets by fiscal year is as follows (in thousands): Fiscal 2025 $ 9,633 Fiscal 2026 7,916 Fiscal 2027 5,750 Fiscal 2028 3,454 Fiscal 2029 721 Thereafter 442 Total $ 27,916 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following table includes a summary of the option activity during the year ended January 31, 2024: Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding at January 31, 2023 3,819,288 $ 23.42 5.7 $ 90,985 Granted — — Exercised (292,088) 5.66 Forfeited or canceled (10,125) 67.00 Outstanding at January 31, 2024 3,517,075 24.77 4.8 85,129 Exercisable at January 31, 2024 3,081,884 20.44 4.4 83,600 Vested and expected to vest at January 31, 2024 3,482,318 24.46 8.0 84,995 |
Schedule of Restricted Stock Units Award Activity | The following table includes a summary of the RSU activity during the year ended January 31, 2024: Number of Shares Weighted-Average Grant-Date Fair Value per Share Outstanding at January 31, 2023 10,975,157 $ 46.56 Granted 3,240,158 43.33 Vested (4,191,997) 46.26 Forfeited or canceled (1,224,694) 47.25 Outstanding at January 31, 2024 8,798,624 45.41 |
Schedule of Performance Share Units Activity | The following table includes a summary of the PSU activity during the year ended January 31, 2024: Number of Shares Weighted-Average Grant-Date Fair Value per Share Outstanding at January 31, 2023 251,027 $ 53.34 Granted* 195,948 48.74 Vested (125,512) 53.34 Forfeited or canceled — — Outstanding at January 31, 2024 321,463 50.54 *This represents awards granted at 100% attainment. |
Nonvested Restricted Stock Shares Activity | The following table includes a summary of RSA activity during the year ended January 31, 2024: 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 January 31, 2024 — — |
Schedule of Shares Available for Issuance Under ESPP | The following table includes a summary of the activity of shares available for issuance under our 2018 Plan and our ESPP during the year ended January 31, 2024: Shares Available for Issuance 2018 Plan 2018 ESPP Balance at January 31, 2023 14,594,290 4,850,775 Authorized 6,592,251 1,318,450 Granted (3,436,106) (596,679) Forfeited 1,234,819 — Balance at January 31, 2024 18,985,254 5,572,546 |
Schedule of Fair Value Assumptions, Stock Options | The fair values of employee stock options and ESPP purchase rights were estimated using a Black-Scholes option pricing model. The fair values of the PSUs were estimated using a Monte Carlo simulation valuation model. The fair values of the Company’s stock options, ESPP purchase rights, and PSUs granted during the years ended January 31, 2024, 2023, and 2022 were estimated using the following assumptions: Year Ended January 31, 2024 2023 2022 Employee Stock Options Risk-free interest rate — % 1.8%-3.7% 1.0%-1.4% Expected volatility — % 44.2%-46.3% 43.1%-43.5% Expected term (in years) — 6.25 6.25 Expected dividend yield — % — % — % Employee Stock Purchase Plan Risk-free interest rate 4.8%-5.5% 0.2%-2.5% 0.0%-0.1% Expected volatility 57.3%-70.7% 50.0%-72.8% 46.9%-68.0% Expected term (in years) 0.49 0.50 0.27-0.50 Expected dividend yield — % — % — % Performance Share Units Risk-free interest rate 4.7 % 4.3 % — % Expected volatility 50.6 % 52.5 % — % Expected volatility (S&P Software and Services Select Index) 32.4 % 31.8 % — % Expected term (in years) 2.00 1.00-2.00 — Expected dividend yield — % — % — % |
Schedule of Fair Value Assumptions, ESPP | The fair values of employee stock options and ESPP purchase rights were estimated using a Black-Scholes option pricing model. The fair values of the PSUs were estimated using a Monte Carlo simulation valuation model. The fair values of the Company’s stock options, ESPP purchase rights, and PSUs granted during the years ended January 31, 2024, 2023, and 2022 were estimated using the following assumptions: Year Ended January 31, 2024 2023 2022 Employee Stock Options Risk-free interest rate — % 1.8%-3.7% 1.0%-1.4% Expected volatility — % 44.2%-46.3% 43.1%-43.5% Expected term (in years) — 6.25 6.25 Expected dividend yield — % — % — % Employee Stock Purchase Plan Risk-free interest rate 4.8%-5.5% 0.2%-2.5% 0.0%-0.1% Expected volatility 57.3%-70.7% 50.0%-72.8% 46.9%-68.0% Expected term (in years) 0.49 0.50 0.27-0.50 Expected dividend yield — % — % — % Performance Share Units Risk-free interest rate 4.7 % 4.3 % — % Expected volatility 50.6 % 52.5 % — % Expected volatility (S&P Software and Services Select Index) 32.4 % 31.8 % — % Expected term (in years) 2.00 1.00-2.00 — Expected dividend yield — % — % — % |
Schedule of Share-based Compensation Expense | Share-based compensation expense included in the consolidated statements of operations was as follows (in thousands): Year Ended January 31, 2024 2023 2022 Cost of subscription revenue $ 13,069 $ 11,248 $ 6,274 Cost of professional services revenue 7,469 6,404 3,788 Research and development 71,341 62,165 41,218 Sales and marketing 73,545 63,224 40,632 General and administrative 40,782 33,514 22,988 Total share-based compensation $ 206,206 $ 176,555 $ 114,900 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The components of loss before income tax provision were as follows (in thousands): Year Ended January 31, 2024 2023 2022 United States $ (101,173) $ (216,167) $ (174,043) Foreign 5,031 3,377 3,242 Loss before income tax provision $ (96,142) $ (212,790) $ (170,801) The income tax provision consisted of the following (in thousands): Year Ended January 31, 2024 2023 2022 Current: Federal $ 4,384 $ 876 $ — State 1,283 1,239 175 Foreign 3,367 1,085 49 Total current tax provision 9,034 3,200 224 Deferred and other: Federal 206 — — State 144 — — Foreign (895) (351) 72 Total deferred tax provision (benefit) (545) (351) 72 Total income tax provision $ 8,489 $ 2,849 $ 296 |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of federal statutory income tax to the Company’s provision for income taxes is as follows (in thousands): Year Ended January 31, 2024 2023 2022 Income tax at statutory federal rate $ (20,190) $ (44,686) $ (35,868) Tax credits (8,839) (7,660) (5,697) Intangible basis adjustment (3,054) — — Change in valuation allowance 26,335 44,898 71,738 Non-deductible executive compensation 4,432 685 — Base Erosion Anti-Avoidance Tax 4,140 — — Share-based compensation 3,332 7,133 (30,092) State taxes 1,158 981 139 Foreign earnings taxed in the U.S. 906 2,276 — Other 269 (778) 76 Total income tax provision $ 8,489 $ 2,849 $ 296 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences and related deferred tax assets and liabilities were as follows (in thousands): January 31, 2024 2023 Deferred tax assets: Deferred revenue $ 144,931 $ 117,579 Net operating loss carryforwards 99,230 121,171 Capitalized research & experimental expenditures 59,819 45,906 Tax credits 37,664 29,267 Lease liabilities 12,520 17,273 Share-based compensation 16,141 17,282 Accrued compensation 10,315 8,983 Other 1,529 982 Total deferred tax assets 382,149 358,443 Valuation allowance (329,141) (302,196) Total deferred tax assets, net 53,008 56,247 Deferred tax liabilities: Capitalized commissions (37,283) (30,836) Lease right-of-use assets (10,199) (14,320) Property and equipment (3,031) (2,250) Intangibles (1,573) (7,637) Other (162) (989) Total deferred tax liabilities (52,248) (56,032) Net deferred tax assets $ 760 $ 215 |
Reconciliation of Amounts of Unrecognized Tax Benefits | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in thousands): Year Ended January 31, 2024 2023 2022 Balance, beginning of the year $ 9,883 $ 7,204 $ 5,283 Increases to tax positions taken during the current year 2,486 2,218 2,010 Increases to tax positions taken in prior years 569 461 — Decreases to tax positions taken in prior years — — (89) Balance, end of year $ 12,938 $ 9,883 $ 7,204 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense recorded in the consolidated statements of operations were as follows (in thousands): Year Ended January 31, 2024 2023 2022 Operating lease cost $ 15,486 $ 22,508 $ 18,739 Finance lease cost: Amortization of assets 73 — — Interest on lease liabilities 23 — — Short-term lease cost 509 950 371 Variable lease cost 3,318 2,833 2,850 Sublease income (2,294) (527) — Total lease costs $ 17,115 $ 25,764 $ 21,960 Other information related to leases was as follows (in thousands): Year Ended January 31, 2024 2023 2022 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows related to operating leases $ 18,978 $ 19,735 $ 17,610 Operating cash flows related to finance leases 23 — — Financing cash flows related to finance leases 34 — — Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 1,666 7,230 994 Finance leases 693 — — Right-of-use assets reductions related to operating leases 4,451 4,696 — Supplemental balance sheet information related to our leases was as follows: January 31, 2024 2023 Weighted-average remaining lease term (in years) Operating leases 3.9 4.5 Finance leases 2.7 0.0 Weighted-average discount rate Operating leases 5.5 % 5.3 % Finance leases 9.9 % — % |
Schedule of Future Minimum Rental Payments for Operating Leases | As of January 31, 2024, remaining maturities of lease liabilities were as follows (in thousands): Operating Leases Finance Leases Fiscal 2025 $ 16,531 $ 270 Fiscal 2026 14,724 270 Fiscal 2027 10,769 225 Fiscal 2028 6,341 — Fiscal 2029 5,296 — Thereafter 1,357 — Total lease payments 55,018 765 Less: imputed interest (5,878) (94) Total $ 49,140 $ 671 As of January 31, 2024, the future total minimum sublease payments to be received were as follows (in thousands): Sublease Receipts Fiscal 2025 $ 2,732 Fiscal 2026 2,154 Fiscal 2027 700 Fiscal 2028 — Fiscal 2029 — Thereafter — Total $ 5,586 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments | We have entered into certain non-cancelable multi-year agreements with third-party providers primarily for our use of cloud-based hosting and data services. As of January 31, 2024, our future estimated purchase commitments related to these contracts by fiscal year are as follows (in thousands): Fiscal 2025 $ 67,664 Fiscal 2026 48,700 Fiscal 2027 1,750 Fiscal 2028 — Fiscal 2029 — Thereafter — Total $ 118,114 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
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): Year Ended January 31, 2024 2023 2022 United States $ 809,036 $ 640,604 $ 454,246 EMEA 77,418 65,574 51,603 APJ 35,189 29,946 21,326 Americas other than the United States 36,695 30,791 23,657 Total $ 958,338 $ 766,915 $ 550,832 |
Long-lived Assets by Geographic Areas | The following table sets forth long-lived assets by geographic area (in thousands): January 31, 2024 2023 United States $ 45,743 $ 60,246 EMEA 2,266 5,583 APJ 3,793 4,510 Americas other than the United States 573 274 Total $ 52,375 $ 70,613 |
Supplemental Consolidated Fin_2
Supplemental Consolidated Financial Statement Information (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
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): January 31, 2024 2023 Prepaid expenses $ 57,685 $ 45,877 Other current assets 6,681 9,186 Total prepaid expense and other current assets $ 64,366 $ 55,063 |
Schedule of Cash and Cash Equivalents | consists of the following (in thousands): January 31, 2024 2023 2022 Cash and cash equivalents $ 282,094 $ 223,156 $ 449,074 Restricted cash included in prepaid expenses and other current assets 329 404 589 Restricted cash 19 197 17 Total cash, cash equivalents, and restricted cash $ 282,442 $ 223,757 $ 449,680 |
Schedule of Restricted Cash and Cash Equivalents | consists of the following (in thousands): January 31, 2024 2023 2022 Cash and cash equivalents $ 282,094 $ 223,156 $ 449,074 Restricted cash included in prepaid expenses and other current assets 329 404 589 Restricted cash 19 197 17 Total cash, cash equivalents, and restricted cash $ 282,442 $ 223,757 $ 449,680 |
Overview and Basis of Present_2
Overview and Basis of Presentation (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | Aug. 01, 2022 | Jul. 31, 2022 | |
Change in Accounting Estimate [Line Items] | |||||
Deferred commissions amortized period | 4 years | ||||
Net loss per share, basic and diluted (in dollars per share) | $ (0.78) | $ (1.66) | $ (1.36) | ||
Diluted net loss per share (in dollars per share) | $ (0.78) | $ (1.66) | $ (1.36) | ||
Accumulated deficit | $ 862,804 | $ 758,173 | |||
Deferred commissions amortization period | 4 years | 3 years | |||
Deferred Commissions, Amortization Period | |||||
Change in Accounting Estimate [Line Items] | |||||
Percentage of total revenue | 1% | 2% | |||
Net loss per share, basic and diluted (in dollars per share) | $ 0.07 | $ 0.09 | |||
Diluted net loss per share (in dollars per share) | $ 0.07 | $ 0.09 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) $ in Millions | 12 Months Ended | ||
Jan. 31, 2024 USD ($) segment | Jan. 31, 2023 USD ($) | Jan. 31, 2022 USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Number of operating segments | segment | 1 | ||
Payment period | 30 days | ||
Deferred commissions amortized period | 4 years | ||
Goodwill impairments | $ 0 | $ 0 | $ 0 |
Internal use software costs capitalized | 15.9 | 11 | |
Amortization expense of capitalized internal-use software costs | 9.5 | 7.7 | 5.7 |
Impairment charges | 1.4 | 1.5 | |
Net self insurance reserve estimate | 2.7 | 2.3 | |
Advertising and marketing expenses | $ 88.5 | $ 77.9 | $ 55.6 |
Software | |||
Lessee, Lease, Description [Line Items] | |||
Software useful life | 3 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Provision for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 6,285 | $ 7,561 | $ 6,933 |
Additions | 8,631 | 5,440 | 7,700 |
Write-offs | (8,356) | (6,716) | (7,072) |
Ending balance | $ 6,560 | $ 6,285 | $ 7,561 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Useful Lives (Details) | Jan. 31, 2024 |
Computer equipment | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 3 years |
Computer software | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 3 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 5 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 7 years |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Revenue from External Customer [Line Items] | |||
Revenue expected to be recognized | $ 713.7 | ||
Percentage of revenue related to remaining performance obligations | 86% | ||
Period of expected timing of satisfaction related to remaining performance obligations | 12 months | ||
Subscription | |||
Revenue from External Customer [Line Items] | |||
Revenue recognized included in deferred revenue | $ 448.1 | $ 328.1 | $ 216.6 |
Revenue expected to be recognized | 704 | ||
Professional services | |||
Revenue from External Customer [Line Items] | |||
Revenue recognized included in deferred revenue | 7 | $ 4.7 | $ 4.8 |
Revenue expected to be recognized | $ 9.7 |
Deferred Commissions (Details)
Deferred Commissions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | Aug. 01, 2022 | Jul. 31, 2022 | |
Revenue Recognition and Deferred Revenue [Abstract] | |||||
Deferred commissions | $ 148,867 | $ 121,785 | |||
Amortization of deferred commission costs | 53,587 | 47,093 | $ 43,680 | ||
Deferred commissions amortization period | 4 years | 3 years | |||
Impairment charges | $ 0 | $ 0 | $ 0 |
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 | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Numerator: | |||
Net loss | $ (104,631) | $ (215,639) | $ (171,097) |
Denominator: | |||
Weighted-average basic shares outstanding (in shares) | 134,507 | 130,071 | 125,632 |
Weighted-average diluted shares outstanding (in shares) | 134,507 | 130,071 | 125,632 |
Basic net loss per share (in dollars per share) | $ (0.78) | $ (1.66) | $ (1.36) |
Diluted net loss per share (in dollars per share) | $ (0.78) | $ (1.66) | $ (1.36) |
Net Loss Per Share - Schedule_2
Net Loss Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total potentially dilutive shares | 12,968 | 15,431 | 11,907 |
Shares subject to outstanding common stock awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total potentially dilutive shares | 12,637 | 15,045 | 11,855 |
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 | 331 | 386 | 52 |
Investments - Schedule of Unrea
Investments - Schedule of Unrealized Gains and Losses, and Estimated Fair Values of the Company’s Investments (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | $ 429,988 | $ 374,381 |
Unrealized Gains | 302 | 60 |
Unrealized Losses | (10) | (229) |
Estimated Fair Value | 430,280 | 374,212 |
Interest receivable | $ 1,500 | 1,100 |
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Prepaid expenses and other current assets | |
Total cash equivalents | Cash and Cash Equivalents | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | $ 83,579 | 140,987 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | 83,579 | 140,987 |
Money market funds | Cash and Cash Equivalents | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 79,082 | 137,490 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | 79,082 | 137,490 |
Agency securities | Cash and Cash Equivalents | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 3,497 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Estimated Fair Value | 3,497 | |
Total short-term investments | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 346,409 | |
Estimated Fair Value | 346,701 | |
Total short-term investments | Total short-term investments | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 346,409 | 233,394 |
Unrealized Gains | 302 | 60 |
Unrealized Losses | (10) | (229) |
Estimated Fair Value | 346,701 | 233,225 |
Corporate bonds | Total short-term investments | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 99,547 | 66,051 |
Unrealized Gains | 158 | 46 |
Unrealized Losses | (9) | (79) |
Estimated Fair Value | 99,696 | 66,018 |
U.S. Treasury securities | Total short-term investments | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 169,825 | 62,520 |
Unrealized Gains | 123 | 2 |
Unrealized Losses | 0 | (144) |
Estimated Fair Value | 169,948 | 62,378 |
Commercial paper | Cash and Cash Equivalents | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 4,497 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Estimated Fair Value | 4,497 | |
Commercial paper | Total short-term investments | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 57,755 | 78,454 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | 57,755 | 78,454 |
Agency securities | Total short-term investments | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 19,282 | 26,369 |
Unrealized Gains | 21 | 12 |
Unrealized Losses | (1) | (6) |
Estimated Fair Value | $ 19,302 | $ 26,375 |
Investments - Schedule of Matur
Investments - Schedule of Maturities of the Company’s Short-term Investments (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Amortized Cost | ||
Amortized Cost | $ 429,988 | $ 374,381 |
Estimated Fair Value | ||
Estimated Fair Value | 430,280 | $ 374,212 |
Total short-term investments | ||
Amortized Cost | ||
Due within one year | 312,314 | |
Due between one to five years | 34,095 | |
Amortized Cost | 346,409 | |
Estimated Fair Value | ||
Due within one year | 312,508 | |
Due between one to five years | 34,193 | |
Estimated Fair Value | $ 346,701 |
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 | Jan. 31, 2024 | Jan. 31, 2023 |
Cash equivalents: | ||
Cash equivalents: | $ 83,579 | $ 140,987 |
Short-term investments: | ||
Available-for-sale securities | 346,701 | 233,225 |
Total assets | 430,280 | 374,212 |
Corporate bonds | ||
Short-term investments: | ||
Available-for-sale securities | 99,696 | 66,018 |
U.S. Treasury securities | ||
Short-term investments: | ||
Available-for-sale securities | 169,948 | 62,378 |
Commercial paper | ||
Short-term investments: | ||
Available-for-sale securities | 57,755 | 78,454 |
Agency securities | ||
Short-term investments: | ||
Available-for-sale securities | 19,302 | 26,375 |
Level 1 | ||
Cash equivalents: | ||
Cash equivalents: | 79,082 | 137,490 |
Short-term investments: | ||
Available-for-sale securities | 0 | 0 |
Total assets | 79,082 | 137,490 |
Level 1 | Corporate bonds | ||
Short-term investments: | ||
Available-for-sale securities | 0 | 0 |
Level 1 | U.S. Treasury securities | ||
Short-term investments: | ||
Available-for-sale securities | 0 | 0 |
Level 1 | Commercial paper | ||
Short-term investments: | ||
Available-for-sale securities | 0 | 0 |
Level 1 | Agency securities | ||
Short-term investments: | ||
Available-for-sale securities | 0 | 0 |
Level 2 | ||
Cash equivalents: | ||
Cash equivalents: | 4,497 | 3,497 |
Short-term investments: | ||
Available-for-sale securities | 346,701 | 233,225 |
Total assets | 351,198 | 236,722 |
Level 2 | Corporate bonds | ||
Short-term investments: | ||
Available-for-sale securities | 99,696 | 66,018 |
Level 2 | U.S. Treasury securities | ||
Short-term investments: | ||
Available-for-sale securities | 169,948 | 62,378 |
Level 2 | Commercial paper | ||
Short-term investments: | ||
Available-for-sale securities | 57,755 | 78,454 |
Level 2 | Agency securities | ||
Short-term investments: | ||
Available-for-sale securities | 19,302 | 26,375 |
Level 3 | ||
Cash equivalents: | ||
Cash equivalents: | 0 | 0 |
Short-term investments: | ||
Available-for-sale securities | 0 | 0 |
Total assets | 0 | 0 |
Level 3 | Corporate bonds | ||
Short-term investments: | ||
Available-for-sale securities | 0 | 0 |
Level 3 | U.S. Treasury securities | ||
Short-term investments: | ||
Available-for-sale securities | 0 | 0 |
Level 3 | Commercial paper | ||
Short-term investments: | ||
Available-for-sale securities | 0 | 0 |
Level 3 | Agency securities | ||
Short-term investments: | ||
Available-for-sale securities | 0 | 0 |
Money market funds | ||
Cash equivalents: | ||
Cash equivalents: | 79,082 | 137,490 |
Money market funds | Level 1 | ||
Cash equivalents: | ||
Cash equivalents: | 79,082 | 137,490 |
Money market funds | Level 2 | ||
Cash equivalents: | ||
Cash equivalents: | 0 | 0 |
Money market funds | Level 3 | ||
Cash equivalents: | ||
Cash equivalents: | 0 | 0 |
Commercial paper | ||
Cash equivalents: | ||
Cash equivalents: | 4,497 | |
Commercial paper | Level 1 | ||
Cash equivalents: | ||
Cash equivalents: | 0 | |
Commercial paper | Level 2 | ||
Cash equivalents: | ||
Cash equivalents: | 4,497 | |
Commercial paper | Level 3 | ||
Cash equivalents: | ||
Cash equivalents: | $ 0 | |
Agency securities | ||
Cash equivalents: | ||
Cash equivalents: | 3,497 | |
Agency securities | Level 1 | ||
Cash equivalents: | ||
Cash equivalents: | 0 | |
Agency securities | Level 2 | ||
Cash equivalents: | ||
Cash equivalents: | 3,497 | |
Agency securities | Level 3 | ||
Cash equivalents: | ||
Cash equivalents: | $ 0 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 70,662 | $ 62,352 |
Less: accumulated depreciation | (28,300) | (22,957) |
Total property and equipment, net | 42,362 | 39,395 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 12,674 | 12,954 |
Less: accumulated depreciation | (100) | |
Computer software, developed | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 42,941 | 33,260 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 5,935 | 6,526 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 9,112 | $ 9,612 |
Property and Equipment, Net - N
Property and Equipment, Net - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 15,200 | $ 13,700 | $ 10,900 |
Accumulated depreciation | 28,300 | 22,957 | |
Amortization of assets | 73 | $ 0 | $ 0 |
Computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Finance lease included in property, plant and equipment, net | 700 | ||
Accumulated depreciation | 100 | ||
Amortization of assets | $ 100 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - On Brand Holdings Inc. - USD ($) $ in Millions | Sep. 01, 2022 | Jan. 31, 2024 |
Business Acquisition [Line Items] | ||
Percentage of outstanding equity acquired | 100% | |
Acquisition costs | $ 0.6 | |
Consideration transferred | $ 20.6 | |
Weighted average amortization period | 5 years 9 months 18 days |
Business Combinations - Assets
Business Combinations - Assets and Liabilities Acquired (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 | Sep. 01, 2022 | Jan. 31, 2022 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 141,477 | $ 142,415 | $ 125,605 | |
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 | 12 Months Ended | ||
Sep. 01, 2022 | Jan. 31, 2024 | Jan. 31, 2023 | |
Business Acquisition [Line Items] | |||
Expected Useful Life | 3 years 4 months 24 days | 4 years 2 months 12 days | |
Software technology | |||
Business Acquisition [Line Items] | |||
Expected Useful Life | 2 years 1 month 6 days | 2 years 9 months 18 days | |
Customer relationships | |||
Business Acquisition [Line Items] | |||
Expected Useful Life | 3 years 8 months 12 days | 4 years 8 months 12 days | |
On Brand Holdings Inc. | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 5,190 | ||
Discount Rate | 14.70% | ||
On Brand Holdings Inc. | Software technology | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 3,200 | ||
Expected Useful Life | 5 years | ||
On Brand Holdings Inc. | Customer relationships | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 1,990 | ||
Expected Useful Life | 7 years |
Goodwill and Net Intangible A_3
Goodwill and Net Intangible Assets - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 142,415 | $ 125,605 |
Additions and measurement period adjustments - acquisition of Outfit | 16,434 | |
Effects of foreign currency translation | (938) | 376 |
Goodwill, ending balance | $ 141,477 | $ 142,415 |
Goodwill and Net Intangible A_4
Goodwill and Net Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill impairments | $ 0 | $ 0 | $ 0 |
Amortization expense | $ 10.8 | $ 10.3 | $ 10.1 |
Goodwill and Net Intangible A_5
Goodwill and Net Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 66,877 | $ 67,173 |
Accumulated Amortization | (38,917) | (28,104) |
Net Carrying Amount | 27,960 | 39,069 |
Net Carrying Amount | $ 27,890 | $ 38,990 |
Weighted Average Life (Years) | 3 years 4 months 24 days | 4 years 2 months 12 days |
Software technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 28,491 | $ 28,673 |
Accumulated Amortization | (20,231) | (14,547) |
Net Carrying Amount | 8,260 | 14,126 |
Net Carrying Amount | $ 8,260 | $ 14,126 |
Weighted Average Life (Years) | 2 years 1 month 6 days | 2 years 9 months 18 days |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 34,072 | $ 34,186 |
Accumulated Amortization | (16,941) | (12,265) |
Net Carrying Amount | 17,131 | 21,921 |
Net Carrying Amount | $ 17,131 | $ 21,921 |
Weighted Average Life (Years) | 3 years 8 months 12 days | 4 years 8 months 12 days |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 4,100 | $ 4,100 |
Accumulated Amortization | (1,601) | (1,157) |
Net Carrying Amount | 2,499 | 2,943 |
Net Carrying Amount | $ 2,499 | $ 2,943 |
Weighted Average Life (Years) | 5 years 7 months 6 days | 6 years 7 months 6 days |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 170 | $ 170 |
Accumulated Amortization | (144) | (135) |
Net Carrying Amount | 26 | 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_6
Goodwill and Net Intangible Assets - Estimated Remaining Amortization Expense (Details) $ in Thousands | Jan. 31, 2024 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Fiscal 2025 | $ 9,633 |
Fiscal 2026 | 7,916 |
Fiscal 2027 | 5,750 |
Fiscal 2028 | 3,454 |
Fiscal 2029 | 721 |
Thereafter | 442 |
Total | $ 27,916 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation | $ 206,206 | $ 176,555 | $ 114,900 | |
Capitalized software development costs | (4,900) | $ 3,500 | $ 2,000 | |
Unrecognized share based compensation expense | $ 381,300 | |||
Unrecognized share based compensation expense, period for recognition | 2 years 1 month 6 days | |||
2018 ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 596,679 | |||
Offering period | 6 months | |||
Purchase price percent | 85% | |||
Maximum number of shares authorized (in shares) | 5,572,546 | 4,850,775 | ||
Share-based compensation | $ 2,600 | |||
2018 ESPP | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Payroll deduction percent of base cash compensation | 15% | |||
Common Class A | 2018 ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period in which shares authorized increase | 10 years | |||
Common Class A | 2018 ESPP | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares authorized (in shares) | 20,400,000 | |||
Common Class A and B | 2018 ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percent of shares outstanding | 1% | |||
Stock option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period | 10 years | |||
Options granted in the period (in shares) | 0 | |||
Weighted average grant date fair value, stock options (in dollars per share) | $ 18.16 | $ 29.71 | ||
Fair value of stock options vested | $ 7,700 | $ 9,100 | $ 10,100 | |
Intrinsic value of options exercised | $ 10,900 | $ 27,000 | $ 141,100 | |
Stock option | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Stock option | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 3,240,158 | |||
Weighted-average grant date fair value, RSU (in dollars per share) | $ 43.33 | $ 39.16 | $ 68.21 | |
Fair value of awards vested | $ 193,900 | $ 160,400 | $ 78,000 | |
Weighted-average grant date fair value, RSA (in dollars per share) | $ 45.41 | $ 46.56 | ||
RSUs | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
RSUs | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Restricted stock award | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
RSAs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 0 | 0 | 0 | |
Weighted-average grant date fair value, RSU (in dollars per share) | $ 0 | |||
Fair value of awards vested | $ 900 | $ 1,300 | $ 1,600 | |
Weighted-average grant date fair value, RSA (in dollars per share) | $ 0 | $ 46.93 | $ 46.93 | |
Performance Share Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Granted (in shares) | 195,948 | 251,027 | ||
Weighted-average grant date fair value, RSU (in dollars per share) | $ 48.74 | $ 53.34 | ||
Weighted-average grant date fair value, RSA (in dollars per share) | $ 50.54 | $ 53.34 | ||
Performance Share Units | Share-Based Payment Arrangement, Tranche One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
Performance Share Units | Share-Based Payment Arrangement, Tranche Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 2 years | |||
Performance Share Units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of the target number of shares | 0% | |||
Performance Share Units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of the target number of shares | 200% |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Options (Details) - Stock option - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Number of Options | ||
Outstanding beginning balance (in shares) | 3,819,288 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (292,088) | |
Forfeited or canceled (in shares) | (10,125) | |
Outstanding ending balance (in shares) | 3,517,075 | 3,819,288 |
Exercisable (in shares) | 3,081,884 | |
Vested and expected to vest (in shares) | 3,482,318 | |
Weighted-Average Exercise Price | ||
Outstanding beginning balance (in dollars per share) | $ 23.42 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 5.66 | |
Forfeited or canceled (in dollars per share) | 67 | |
Outstanding ending balance (in dollars per share) | 24.77 | $ 23.42 |
Exercisable (in dollars per share) | 20.44 | |
Vested and expected to vest (in dollars per share) | $ 24.46 | |
Weighted-Average Remaining Contractual Term (years) | ||
Outstanding | 4 years 9 months 18 days | 5 years 8 months 12 days |
Exercisable | 4 years 4 months 24 days | |
Vested and expected to vest | 8 years | |
Aggregate Intrinsic Value (in thousands) | ||
Outstanding | $ 85,129 | $ 90,985 |
Exercisable | 83,600 | |
Vested and expected to vest | $ 84,995 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Units (Details) - RSUs - $ / shares | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Number of Shares | |||
Outstanding beginning balance (in shares) | 10,975,157 | ||
Granted (in shares) | 3,240,158 | ||
Vested (in shares) | (4,191,997) | ||
Forfeited or canceled (in shares) | (1,224,694) | ||
Outstanding ending balance (in shares) | 8,798,624 | 10,975,157 | |
Weighted-Average Grant-Date Fair Value per Share | |||
Outstanding beginning balance (in dollars per share) | $ 46.56 | ||
Granted (in dollars per share) | 43.33 | $ 39.16 | $ 68.21 |
Vested (in dollars per share) | 46.26 | ||
Forfeited or canceled (in dollars per share) | 47.25 | ||
Outstanding ending balance (in dollars per share) | $ 45.41 | $ 46.56 |
Share-Based Compensation - Perf
Share-Based Compensation - Performance Share Units (Details) - Performance Share Units - $ / shares | 12 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Number of Shares | ||
Outstanding beginning balance (in shares) | 251,027 | |
Granted (in shares) | 195,948 | 251,027 |
Vested (in shares) | (125,512) | |
Forfeited or canceled (in shares) | 0 | |
Outstanding ending balance (in shares) | 321,463 | 251,027 |
Attainment percentage | 10,000% | |
Weighted-Average Grant-Date Fair Value per Share | ||
Outstanding beginning balance (in dollars per share) | $ 53.34 | |
Granted (in dollars per share) | 48.74 | $ 53.34 |
Vested (in dollars per share) | 53.34 | |
Forfeited or canceled (in dollars per share) | 0 | |
Outstanding ending balance (in dollars per share) | $ 50.54 | $ 53.34 |
Share-Based Compensation - Re_2
Share-Based Compensation - Restricted Stock Awards (Details) - RSAs - $ / shares | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Number of Shares | |||
Outstanding beginning balance (in shares) | 19,895 | ||
Granted (in shares) | 0 | 0 | 0 |
Vested (in shares) | (19,895) | ||
Forfeited or canceled (in shares) | 0 | ||
Outstanding ending balance (in shares) | 0 | 19,895 | |
Weighted-Average Grant-Date Fair Value per Share | |||
Outstanding beginning balance (in dollars per share) | $ 46.93 | $ 46.93 | |
Granted (in dollars per share) | 0 | ||
Vested (in dollars per share) | 46.93 | ||
Forfeited or canceled (in dollars per share) | 0 | ||
Outstanding ending balance (in dollars per share) | $ 0 | $ 46.93 |
Share-Based Compensation - Empl
Share-Based Compensation - Employee Stock Purchase Plan (Details) | 12 Months Ended |
Jan. 31, 2024 shares | |
2018 Plan | |
Shares Available for Issuance | |
Balance at beginning of period (in shares) | 14,594,290 |
Authorized (in shares) | 6,592,251 |
Granted (in shares) | (3,436,106) |
Forfeited (in shares) | 1,234,819 |
Balance at end of period (in shares) | 18,985,254 |
2018 ESPP | |
Shares Available for Issuance | |
Balance at beginning of period (in shares) | 4,850,775 |
Authorized (in shares) | 1,318,450 |
Granted (in shares) | (596,679) |
Forfeited (in shares) | 0 |
Balance at end of period (in shares) | 5,572,546 |
Share-Based Compensation - Valu
Share-Based Compensation - Valuation Assumptions (Details) | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Employee Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 years 3 months | 6 years 3 months | |
Expected dividend yield | 0% | 0% | |
Employee Stock Options | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.80% | 1% | |
Expected volatility | 44.20% | 43.10% | |
Employee Stock Options | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 3.70% | 1.40% | |
Expected volatility | 46.30% | 43.50% | |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 5 months 26 days | 6 months | |
Expected dividend yield | 0% | 0% | 0% |
Employee Stock Purchase Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 4.80% | 0.20% | 0% |
Expected volatility | 57.30% | 50% | 46.90% |
Expected term (in years) | 3 months 7 days | ||
Employee Stock Purchase Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 5.50% | 2.50% | 0.10% |
Expected volatility | 70.70% | 72.80% | 68% |
Expected term (in years) | 6 months | ||
Performance Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 4.70% | 4.30% | |
Expected volatility | 50.60% | 52.50% | |
Expected volatility (S&P Software and Services Select Index) | 32.40% | 31.80% | |
Expected term (in years) | 2 years | ||
Expected dividend yield | 0% | 0% | |
Performance Share Units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 1 year | ||
Performance Share Units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 2 years |
Share-Based Compensation - Shar
Share-Based Compensation - Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation | $ 206,206 | $ 176,555 | $ 114,900 |
Cost of subscription revenue | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation | 13,069 | 11,248 | 6,274 |
Cost of professional services revenue | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation | 7,469 | 6,404 | 3,788 |
Research and development | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation | 71,341 | 62,165 | 41,218 |
Sales and marketing | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation | 73,545 | 63,224 | 40,632 |
General and administrative | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation | $ 40,782 | $ 33,514 | $ 22,988 |
Income Taxes - Loss Before Prov
Income Taxes - Loss Before Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (101,173) | $ (216,167) | $ (174,043) |
Foreign | 5,031 | 3,377 | 3,242 |
Loss before income tax provision | $ (96,142) | $ (212,790) | $ (170,801) |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Current: | |||
Federal | $ 4,384 | $ 876 | $ 0 |
State | 1,283 | 1,239 | 175 |
Foreign | 3,367 | 1,085 | 49 |
Total current tax provision | 9,034 | 3,200 | 224 |
Deferred and other: | |||
Federal | 206 | 0 | 0 |
State | 144 | 0 | 0 |
Foreign | (895) | (351) | 72 |
Total deferred tax provision (benefit) | (545) | (351) | 72 |
Total income tax provision | $ 8,489 | $ 2,849 | $ 296 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
Income tax at statutory federal rate | $ (20,190) | $ (44,686) | $ (35,868) |
Tax credits | (8,839) | (7,660) | (5,697) |
Intangible basis adjustment | (3,054) | 0 | 0 |
Change in valuation allowance | 26,335 | 44,898 | 71,738 |
Non-deductible executive compensation | 4,432 | 685 | 0 |
Base Erosion Anti-Avoidance Tax | 4,140 | 0 | 0 |
Share-based compensation | 3,332 | 7,133 | (30,092) |
State taxes | 1,158 | 981 | 139 |
Foreign earnings taxed in the U.S. | 906 | 2,276 | 0 |
Other | 269 | (778) | 76 |
Total income tax provision | $ 8,489 | $ 2,849 | $ 296 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Deferred tax assets: | ||
Deferred revenue | $ 144,931 | $ 117,579 |
Net operating loss carryforwards | 99,230 | 121,171 |
Capitalized research & experimental expenditures | 59,819 | 45,906 |
Tax credits | 37,664 | 29,267 |
Lease liabilities | 12,520 | 17,273 |
Share-based compensation | 16,141 | 17,282 |
Accrued compensation | 10,315 | 8,983 |
Other | 1,529 | 982 |
Total deferred tax assets | 382,149 | 358,443 |
Valuation allowance | (329,141) | (302,196) |
Total deferred tax assets, net | 53,008 | 56,247 |
Deferred tax liabilities: | ||
Capitalized commissions | (37,283) | (30,836) |
Lease right-of-use assets | (10,199) | (14,320) |
Property and equipment | (3,031) | (2,250) |
Intangibles | (1,573) | (7,637) |
Other | (162) | (989) |
Total deferred tax liabilities | (52,248) | (56,032) |
Net deferred tax assets | $ 760 | $ 215 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Operating Loss Carryforwards [Line Items] | ||||
Income tax provision | $ 8,489 | $ 2,849 | $ 296 | |
Increase in valuation allowance | 26,900 | |||
Tax credit carryforward for income tax purposes | 37,700 | |||
Liability for uncertain tax positions | 0 | 0 | ||
Unrecognized tax benefits | 12,938 | 9,883 | 7,204 | $ 5,283 |
Unrecognized tax benefits that would impact effective tax rate | 12,900 | 9,900 | ||
Penalties and interest expense | 0 | $ 0 | $ 0 | |
Domestic Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Federal tax net operating loss carryforward, not subject to expiration | 388,600 | |||
State and Local Jurisdiction | ||||
Operating Loss Carryforwards [Line Items] | ||||
Federal tax net operating loss carryforward, subject to expiration | $ 291,700 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, beginning of the year | $ 9,883 | $ 7,204 | $ 5,283 |
Increases to tax positions taken during the current year | 2,486 | 2,218 | 2,010 |
Increases to tax positions taken in prior years | 569 | 461 | 0 |
Decreases to tax positions taken in prior years | 0 | 0 | (89) |
Balance, end of year | $ 12,938 | $ 9,883 | $ 7,204 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Lessee, Lease, Description [Line Items] | |||
Impairment loss | $ 1,400 | $ 1,500 | |
Lease cost | $ 15,486 | 22,508 | $ 18,739 |
Bellevue, WA and Denver, CO | |||
Lessee, Lease, Description [Line Items] | |||
Lease cost | $ 3,500 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 5 years | ||
Option to extend lease | 5 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Leases [Abstract] | |||
Operating lease cost | $ 15,486 | $ 22,508 | $ 18,739 |
Finance lease cost: | |||
Amortization of assets | 73 | 0 | 0 |
Interest on lease liabilities | 23 | 0 | 0 |
Short-term lease cost | 509 | 950 | 371 |
Variable lease cost | 3,318 | 2,833 | 2,850 |
Sublease income | (2,294) | (527) | 0 |
Total lease costs | $ 17,115 | $ 25,764 | $ 21,960 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows related to operating leases | $ 18,978 | $ 19,735 | $ 17,610 |
Operating cash flows related to finance leases | 23 | 0 | 0 |
Financing cash flows related to finance leases | 34 | 0 | 0 |
Right-of-use assets obtained in exchange for new lease liabilities: | |||
Operating leases | 1,666 | 7,230 | 994 |
Finance leases | 693 | 0 | 0 |
Right-of-use assets reductions related to operating leases | $ 4,451 | $ 4,696 | $ 0 |
Weighted-average remaining lease term (in years) | |||
Operating leases | 3 years 10 months 24 days | 4 years 6 months | |
Finance leases | 2 years 8 months 12 days | 0 years | |
Weighted-average discount rate | |||
Operating leases | 5.50% | 5.30% | |
Finance leases | 9.90% | 0% |
Leases - Schedule of Future Pay
Leases - Schedule of Future Payments for Operating and Finance Leases (Details) $ in Thousands | Jan. 31, 2024 USD ($) |
Operating Leases | |
Fiscal 2025 | $ 16,531 |
Fiscal 2026 | 14,724 |
Fiscal 2027 | 10,769 |
Fiscal 2028 | 6,341 |
Fiscal 2029 | 5,296 |
Thereafter | 1,357 |
Total lease payments | 55,018 |
Less: imputed interest | (5,878) |
Total | 49,140 |
Finance Leases | |
Fiscal 2025 | 270 |
Fiscal 2026 | 270 |
Fiscal 2027 | 225 |
Fiscal 2028 | 0 |
Fiscal 2029 | 0 |
Thereafter | 0 |
Total lease payments | 765 |
Less: imputed interest | (94) |
Total | 671 |
Sublease Receipts | |
Fiscal 2025 | 2,732 |
Fiscal 2026 | 2,154 |
Fiscal 2027 | 700 |
Fiscal 2028 | 0 |
Fiscal 2029 | 0 |
Thereafter | 0 |
Total | $ 5,586 |
Commitments and Contingencies -
Commitments and Contingencies - Purchase Commitments (Details) $ in Thousands | Jan. 31, 2024 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Fiscal 2025 | $ 67,664 |
Fiscal 2026 | 48,700 |
Fiscal 2027 | 1,750 |
Fiscal 2028 | 0 |
Fiscal 2029 | 0 |
Thereafter | 0 |
Total | $ 118,114 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Other Commitments [Line Items] | |||
Legal settlement payment | $ 10 | ||
Proceeds from Collection of Other Receivables | $ 3.9 | ||
Insurance Claims | |||
Other Commitments [Line Items] | |||
Legal settlement recovery | $ 4.5 | ||
Estimated legal settlement recovery | $ 3.9 |
401(k) and Pension Plans (Detai
401(k) and Pension Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jul. 31, 2020 | Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Retirement Benefits [Abstract] | ||||
Employer matching contribution, percent of match | 50% | |||
Employer matching contribution, percent of employees' eligible pay | 6% | |||
Expense related to matching contributions | $ 9.9 | $ 9.5 | $ 6.7 | |
Expense related to employer contributions | $ 3 | $ 2.5 | $ 1.6 |
Geographic Information - Revenu
Geographic Information - Revenue by Geographic Location (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 958,338 | $ 766,915 | $ 550,832 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 809,036 | 640,604 | 454,246 |
EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 77,418 | 65,574 | 51,603 |
APJ | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 35,189 | 29,946 | 21,326 |
Americas other than the United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 36,695 | $ 30,791 | $ 23,657 |
Geographic Information - Long-l
Geographic Information - Long-lived Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 52,375 | $ 70,613 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 45,743 | 60,246 |
EMEA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 2,266 | 5,583 |
APJ | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 3,793 | 4,510 |
Americas other than the United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 573 | $ 274 |
Geographic Information - Narrat
Geographic Information - Narrative (Details) | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
United States | Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | |||
Property, Plant and Equipment [Line Items] | |||
Concentration risk (more than) | 10% | 10% | 10% |
Supplemental Consolidated Fin_3
Supplemental Consolidated Financial Statement Information - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid expenses | $ 57,685 | $ 45,877 |
Other current assets | 6,681 | 9,186 |
Total prepaid expense and other current assets | $ 64,366 | $ 55,063 |
Supplemental Consolidated Fin_4
Supplemental Consolidated Financial Statement Information - Narrative (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash, current | $ 329 | $ 404 | $ 589 |
Letter of Credit Collateral | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash, current | $ 300 | $ 600 | $ 600 |
Supplemental Consolidated Fin_5
Supplemental Consolidated Financial Statement Information - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 282,094 | $ 223,156 | $ 449,074 | |
Restricted cash included in prepaid expenses and other current assets | 329 | 404 | 589 | |
Restricted cash | 19 | 197 | 17 | |
Total cash, cash equivalents, and restricted cash | $ 282,442 | $ 223,757 | $ 449,680 | $ 442,348 |