Cover
Cover - USD ($) shares in Millions, $ in Billions | 12 Months Ended | ||
Jan. 31, 2021 | Feb. 28, 2021 | Jul. 31, 2020 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 31, 2021 | ||
Current Fiscal Year End Date | --01-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-38451 | ||
Entity Registrant Name | Zuora, Inc. | ||
Entity Central Index Key | 0001423774 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-5530976 | ||
Entity Address, Address Line One | 101 Redwood Shores Parkway | ||
Entity Address, City or Town | Redwood City | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94065 | ||
City Area Code | 888 | ||
Local Phone Number | 976-9056 | ||
Title of 12(b) Security | Class A common stock, par value $0.0001 per share | ||
Trading Symbol | ZUO | ||
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 | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.2 | ||
Documents Incorporated by Reference | Portions of the Registrant's definitive Proxy Statement relating to the 2021 Annual Meeting of Stockholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. Such Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the registrant's fiscal year ended January 31, 2021. Except with respect to information specifically incorporated by reference in this Form 10-K, the Proxy Statement is not deemed to be filed as part of this Form 10-K. | ||
Class A common stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 110 | ||
Class B common stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 11 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 94,110 | $ 54,275 |
Short-term investments | 92,484 | 117,662 |
Accounts receivable, net of allowance for credit losses of $4,522 and $2,943 as of January 31, 2021 and January 31, 2020, respectively | 78,860 | 68,875 |
Deferred commissions, current portion | 12,712 | 9,585 |
Prepaid expenses and other current assets | 15,574 | 16,387 |
Total current assets | 293,740 | 266,784 |
Property and equipment, net | 33,369 | 33,489 |
Operating lease right-of-use assets | 47,085 | 54,286 |
Purchased intangibles, net | 3,928 | 5,620 |
Deferred commissions, net of current portion | 21,905 | 19,591 |
Goodwill | 17,632 | 17,632 |
Other assets | 3,848 | 4,825 |
Total assets | 421,507 | 402,227 |
Current liabilities: | ||
Accounts payable | 2,249 | 2,098 |
Accrued expenses and other current liabilities | 14,550 | 17,731 |
Accrued employee liabilities | 29,470 | 24,193 |
Debt, current portion | 4,397 | 4,432 |
Deferred revenue, current portion | 127,701 | 111,411 |
Operating lease liabilities, current portion | 9,630 | 5,755 |
Total current liabilities | 187,997 | 165,620 |
Debt, net of current portion | 1,666 | 6,094 |
Deferred revenue, net of current portion | 1,529 | 1,007 |
Operating lease liabilities, net of current portion | 53,590 | 62,307 |
Deferred tax liabilities | 1,929 | 1,569 |
Other long-term liabilities | 2,883 | 971 |
Total liabilities | 249,594 | 237,568 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Additional paid-in capital | 635,127 | 555,307 |
Accumulated other comprehensive income | 796 | 188 |
Accumulated deficit | (464,022) | (390,848) |
Total stockholders’ equity | 171,913 | 164,659 |
Total liabilities and stockholders’ equity | 421,507 | 402,227 |
Class A common stock | ||
Stockholders’ equity: | ||
Common stock | 11 | 10 |
Class B common stock | ||
Stockholders’ equity: | ||
Common stock | $ 1 | $ 2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Allowance for credit losses | $ 4,522 | $ 2,943 |
Class A common stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, issued (in shares) | 109,900,000 | 97,134,000 |
Common stock, outstanding (in shares) | 109,900,000 | 97,134,000 |
Class B common stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, issued (in shares) | 11,004,000 | 17,348,000 |
Common stock, outstanding (in shares) | 11,004,000 | 17,348,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Revenue: | |||
Total revenue | $ 305,420 | $ 276,057 | $ 234,989 |
Cost of revenue: | |||
Total cost of revenue | 130,770 | 134,181 | 116,590 |
Gross profit | 174,650 | 141,876 | 118,399 |
Operating expenses: | |||
Research and development | 76,795 | 74,398 | 54,417 |
Sales and marketing | 116,914 | 108,264 | 95,169 |
General and administrative | 54,803 | 44,879 | 39,230 |
Total operating expenses | 248,512 | 227,541 | 188,816 |
Loss from operations | (73,862) | (85,665) | (70,417) |
Interest and other income (expense), net | 2,561 | 2,712 | (417) |
Loss before income taxes | (71,301) | (82,953) | (70,834) |
Income tax provision | 1,873 | 441 | 1,907 |
Net loss | (73,174) | (83,394) | (72,741) |
Comprehensive loss: | |||
Foreign currency translation adjustment | 696 | (379) | 3 |
Unrealized (loss) gain on available-for-sale securities, net of tax | (88) | 86 | 7 |
Comprehensive loss | $ (72,566) | $ (83,687) | $ (72,731) |
Net loss per share, basic and diluted (in dollars per share) | $ (0.62) | $ (0.75) | $ (0.80) |
Weighted-average shares outstanding used in calculating net loss per share, basic and diluted (in shares) | 117,598 | 111,122 | 91,267 |
Subscription | |||
Revenue: | |||
Total revenue | $ 242,340 | $ 206,555 | $ 164,805 |
Cost of revenue: | |||
Total cost of revenue | 58,808 | 53,036 | 42,993 |
Professional services | |||
Revenue: | |||
Total revenue | 63,080 | 69,502 | 70,184 |
Cost of revenue: | |||
Total cost of revenue | $ 71,962 | $ 81,145 | $ 73,597 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Class A common stock | Class B common stock | Convertible Preferred Stock | Common StockClass A common stock | Common StockClass B common stock | Additional Paid-in Capital | Related Party Receivable | Accumulated Other Comprehensive Income | Accumulated Deficit |
Beginning balance (in shares) at Jan. 31, 2018 | 61,984,000 | |||||||||
Beginning balance (in shares) at Jan. 31, 2018 | 0 | 30,524,000 | ||||||||
Beginning balance at Jan. 31, 2018 | $ 50,638 | $ 6 | $ 0 | $ 3 | $ 286,152 | $ (1,281) | $ 471 | $ (234,713) | ||
Conversion of convertible preferred stock to common stock in connection with initial public offering (in shares) | (61,984,000) | 61,984,000 | ||||||||
Conversion of convertible preferred stock to common stock in connection with initial public offering | 0 | $ (6) | $ 6 | |||||||
Conversion of Class B common stock to Class A common stock (in shares) | 63,469,000 | |||||||||
Conversion of Class B common stock to Class A common stock | 0 | $ 7 | ||||||||
Conversion of Class B common stock to Class A common stock (in shares) | (63,469,000) | |||||||||
Conversion of Class B common stock to Class A common stock | $ (7) | |||||||||
Issuance of common stock in connection with initial public offering, net of underwriting discounts and issuance costs (in shares) | 12,650,000 | |||||||||
Issuance of common stock in connection with initial public offering, net of underwriting discounts and issuance costs | 159,457 | $ 1 | 159,456 | |||||||
Issuance of common stock upon exercise of stock options (in shares) | 369,000 | 3,271,000 | ||||||||
Issuance of common stock upon exercise of stock options | 9,395 | $ 1 | 9,394 | |||||||
Lapse of restrictions on common stock related to early exercise of stock options | 2,088 | 2,088 | ||||||||
Related party notes receivable | 1,281 | 1,281 | ||||||||
RSU releases (in shares) | 138,000 | 265,000 | ||||||||
RSU releases | 0 | |||||||||
Purchases of common stock under the ESPP (in shares) | 446,000 | |||||||||
Purchases of common stock under the ESPP | 5,329 | 5,329 | ||||||||
Charitable donation of stock (in shares) | 47,000 | |||||||||
Charitable donation of stock | 1,000 | 1,000 | ||||||||
Stock-based compensation | 25,357 | 25,357 | ||||||||
Other comprehensive income (loss) | 10 | 10 | ||||||||
Net loss | (72,741) | (72,741) | ||||||||
Ending balance (in shares) at Jan. 31, 2019 | 0 | |||||||||
Ending balance (in shares) at Jan. 31, 2019 | 77,119,000 | 32,575,000 | ||||||||
Ending balance at Jan. 31, 2019 | 181,814 | $ 0 | $ 8 | $ 3 | 488,776 | 0 | 481 | (307,454) | ||
Conversion of Class B common stock to Class A common stock (in shares) | 18,398,000 | |||||||||
Conversion of Class B common stock to Class A common stock | 0 | $ 1 | ||||||||
Conversion of Class B common stock to Class A common stock (in shares) | (18,398,000) | |||||||||
Conversion of Class B common stock to Class A common stock | $ (1) | |||||||||
Issuance of common stock upon exercise of stock options (in shares) | 2,980,000 | |||||||||
Issuance of common stock upon exercise of stock options, net of repurchases (in shares) | (25,000) | |||||||||
Issuance of common stock upon exercise of stock options | 12,055 | $ 0 | 12,055 | |||||||
Lapse of restrictions on common stock related to early exercise of stock options | 412 | 412 | ||||||||
RSU releases (in shares) | 893,000 | 191,000 | ||||||||
RSU releases | 0 | |||||||||
Purchases of common stock under the ESPP (in shares) | 749,000 | |||||||||
Purchases of common stock under the ESPP | 8,981 | $ 1 | 8,980 | |||||||
Stock-based compensation | 45,046 | 45,046 | ||||||||
Deferred offering costs | 38 | 38 | ||||||||
Other comprehensive income (loss) | (293) | (293) | ||||||||
Net loss | (83,394) | (83,394) | ||||||||
Ending balance (in shares) at Jan. 31, 2020 | 0 | |||||||||
Ending balance (in shares) at Jan. 31, 2020 | 97,134,000 | 17,348,000 | 97,134,000 | 17,348,000 | ||||||
Ending balance at Jan. 31, 2020 | 164,659 | $ 0 | $ 10 | $ 2 | 555,307 | 0 | 188 | (390,848) | ||
Conversion of Class B common stock to Class A common stock (in shares) | 9,176,000 | |||||||||
Conversion of Class B common stock to Class A common stock | $ 0 | $ 1 | ||||||||
Conversion of Class B common stock to Class A common stock (in shares) | (9,176,000) | |||||||||
Conversion of Class B common stock to Class A common stock | $ (1) | |||||||||
Issuance of common stock upon exercise of stock options (in shares) | 2,725,000 | 8,000 | 2,714,000 | |||||||
Issuance of common stock upon exercise of stock options | $ 11,784 | $ 0 | 11,784 | |||||||
Lapse of restrictions on common stock related to early exercise of stock options | 116 | 116 | ||||||||
RSU releases (in shares) | 2,778,000 | 118,000 | ||||||||
RSU releases | 0 | |||||||||
Purchases of common stock under the ESPP (in shares) | 730,000 | |||||||||
Purchases of common stock under the ESPP | 7,637 | $ 0 | 7,637 | |||||||
Charitable donation of stock (in shares) | 73,964 | 74,000 | ||||||||
Charitable donation of stock | 1,000 | 1,000 | ||||||||
Stock-based compensation | 59,283 | 59,283 | ||||||||
Other comprehensive income (loss) | 608 | 608 | ||||||||
Net loss | $ (73,174) | (73,174) | ||||||||
Ending balance (in shares) at Jan. 31, 2021 | 0 | 0 | ||||||||
Ending balance (in shares) at Jan. 31, 2021 | 109,900,000 | 11,004,000 | 109,900,000 | 11,004,000 | ||||||
Ending balance at Jan. 31, 2021 | $ 171,913 | $ 0 | $ 11 | $ 1 | $ 635,127 | $ 0 | $ 796 | $ (464,022) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Cash flows from operating activities: | |||
Net loss | $ (73,174) | $ (83,394) | $ (72,741) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation, amortization and accretion | 15,308 | 11,866 | 8,228 |
Stock-based compensation | 59,283 | 45,046 | 25,357 |
Provision for credit losses | 3,686 | 3,887 | 3,949 |
Donation of common stock to charitable foundation | 1,000 | 0 | 1,000 |
Amortization of deferred commissions | 12,401 | 9,515 | 7,959 |
Reduction in carrying amount of right-of-use assets | 8,265 | 8,584 | 0 |
Other | 73 | 1,643 | 147 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (13,671) | (14,504) | (12,443) |
Prepaid expenses and other assets | 895 | (4,180) | (5,825) |
Deferred commissions | (17,842) | (11,411) | (13,556) |
Accounts payable | 106 | 417 | (1,103) |
Accrued expenses and other liabilities | 53 | 627 | 5,856 |
Accrued employee liabilities | 7,065 | 1,590 | 4,902 |
Deferred revenue | 16,812 | 25,522 | 24,689 |
Operating lease liabilities | (8,974) | 1,202 | 0 |
Net cash provided by (used in) operating activities | 11,286 | (3,590) | (23,581) |
Cash flows from investing activities: | |||
Purchases of property and equipment | (13,144) | (21,424) | (13,412) |
Insurance proceeds for damaged property and equipment | 988 | 0 | 0 |
Purchases of short-term investments | (97,363) | (184,633) | (107,464) |
Sales of short-term investments | 2,511 | 3,497 | 0 |
Maturities of short-term investments | 119,880 | 172,800 | 0 |
Business combination, net of cash acquired | 0 | 0 | (247) |
Net cash provided by (used in) investing activities | 12,872 | (29,760) | (121,123) |
Cash flows from financing activities: | |||
Payments under capital leases | (3,623) | ||
Proceeds from issuance of common stock upon exercise of stock options, net of repurchases of unvested common stock | 11,784 | 11,960 | 11,463 |
Payments of offering costs | 0 | 0 | (4,399) |
Proceeds of issuance of common stock under employee stock purchase plan | 7,637 | 8,980 | 5,329 |
Proceeds from initial public offering, net of underwriters’ discounts and commissions | 0 | 0 | 164,703 |
Payments under related party notes receivable | 0 | 0 | (4,344) |
Repayments of related party notes receivable | 0 | 0 | 5,625 |
Principal payments on long-term debt | (4,440) | (2,960) | (834) |
Payments related to business combination | 0 | 0 | (12,558) |
Net cash provided by financing activities | 14,981 | 17,980 | 161,362 |
Effect of exchange rates on cash and cash equivalents and restricted cash | 696 | (379) | 3 |
Net increase (decrease) in cash and cash equivalents and restricted cash | 39,835 | (15,749) | 16,661 |
Cash and cash equivalents and restricted cash, beginning of year | 54,275 | 70,024 | 53,363 |
Cash and cash equivalents and restricted cash, end of year | 94,110 | 54,275 | 70,024 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 262 | 595 | 963 |
Cash paid for tax | 1,159 | 836 | 755 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Lapse in restrictions on early exercised common stock options | 116 | 412 | 2,088 |
Property and equipment purchases accrued or in accounts payable | 70 | 3,611 | 307 |
Deferred offering costs payable or accrued but not paid | $ 0 | $ 0 | $ 210 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 12 Months Ended |
Jan. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview and Basis of Presentation | Note 1. Overview and Basis of Presentation Description of Business Zuora, Inc. was incorporated in the state of Delaware in 2006 and began operations in 2007. Zuora's fiscal year ends on January 31. Zuora is headquartered in Redwood City, California. Zuora provides a cloud-based subscription management platform, architected specifically for dynamic, recurring business models. Our solution enables companies across multiple industries and geographies to launch, manage and scale a subscription business, automating the entire subscription order-to-revenue process, including billing, collections and revenue recognition. With Zuora’s solution, businesses can change pricing and packaging for products and services to grow and scale, efficiently comply with revenue recognition standards, analyze customer data to optimize their subscription offerings, and build meaningful relationships with their subscribers. References to "Zuora", "us", “our”, or “we” in these notes refer to Zuora, Inc. and its subsidiaries on a consolidated basis. Initial Public Offering In April 2018, we completed an IPO, in which we issued and sold an aggregate of 12.7 million shares of our newly authorized Class A common stock at a price to the public of $14.00 per share. The shares sold included 1.7 million shares pursuant to the exercise by the underwriters of an option to purchase additional shares at a price of $14.00 per share. We received aggregate net proceeds of $159.7 million from the IPO after deducting underwriting discounts and commissions and payments of offering costs. Prior to the completion of the IPO, 30.5 million shares of common stock then outstanding were reclassified as Class B common stock, and all shares of convertible preferred stock outstanding immediately prior to the IPO were converted into 62.0 million shares of Class B common stock on a one-to-one basis. Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements, which include the accounts of Zuora and its wholly owned subsidiaries, have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP principles requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the consolidated financial statements, as well as reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates. Our most significant estimates and assumptions are related to revenue recognition with respect to the determination of the relative standalone selling prices for our services; the expected period of benefit over which deferred commissions are amortized; determination of the fair value of our common stock for valuation of stock-based awards issued prior to the completion of the IPO; valuation of stock-based awards; estimates of allowance for credit losses; estimates of the fair value of goodwill; useful lives of intangibles and other long-lived assets; and the valuation of deferred income tax assets and contingencies. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results may differ materially from these estimates under different assumptions or conditions. Foreign Currency The functional currencies of our foreign subsidiaries are the respective local currencies. Translation adjustments arising from the use of differing exchange rates from period to period are included in accumulated other comprehensive income within our consolidated balance sheets. Foreign currency transaction gains and losses are included in interest and other income (expense), net in the consolidated statements of comprehensive loss and were not material for fiscal 2021, 2020 and 2019. All assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenue and expenses are translated at the average exchange rate during the period, and equity balances are translated using historical exchange rates. Segment Information We operate as one operating segment. Our chief operating decision maker is our Chief Executive Officer, who primarily reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Recent Accounting Pronouncements | 12 Months Ended |
Jan. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Recent Accounting Pronouncements | Note 2. Summary of Significant Accounting Policies and Recent Accounting Pronouncements Revenue Recognition Policy We generate revenue primarily from two sources: (1) subscription services, which is comprised of revenue from subscription fees from customers accessing our cloud-based software; and (2) professional services and other revenue. For the year ended January 31, 2021, subscription revenue was $242.3 million and professional services and other revenue was $63.1 million. Revenue is recognized upon satisfaction of performance obligations in an amount that reflects the consideration we expect to receive in exchange for those products or services. We determine the amount of revenue to be recognized through application of 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 we satisfy the performance obligations. Our subscription service arrangements are typically non-cancelable for a pre-specified subscription term and do not typically contain refund-type provisions. Subscription Services Subscription services revenue is primarily comprised of fees that provide customers with access to our cloud-based software during the term of the arrangement. Cloud-based services typically allow our customers to use our multi-tenant software without taking possession of the software. Revenue is generally recognized ratably over the contract term beginning on the commencement date of each contract, which is the date our cloud-based software is made available to customers. We generally invoice for subscription services annually or quarterly in advance of services being performed. On-Premise Arrangements We inherited some legacy on-premise license arrangements when we acquired a business in fiscal 2018. These licenses are primarily term based and bundled with related maintenance (PCS). Revenue for the software license is generally recognized at the beginning of the contract term and the PCS is recognized ratably over the contract term. Subscription and on-premise license agreements generally have terms ranging from one Professional Services and Other Revenue Professional services revenue consists of fees for services related to helping our customers deploy, configure, and optimize the use of our solutions. These services include system integration, data migration, process enhancement, and training. Professional services projects generally take three Contracts with Multiple Performance Obligations We enter into contracts with our customers that often include cloud-based software subscriptions and professional services performance obligations. A performance obligation is a commitment in a contract with a customer to transfer products or services that are distinct. Determining whether products and services are distinct performance obligations that should be accounted for separately or combined as one unit of accounting may require judgment. Our cloud-based software subscriptions are distinct as such services are often sold separately. In addition, our subscription services contracts can include multi-year agreements that include a fixed annual platform fee and a volume block usage fee that may vary based on permitted volume usage each year. To the extent that permitted volume usage each year is the same, we have concluded that there is one multi-year stand-ready performance obligation. To the extent that permitted volume usage each year varies, we have concluded that each year represents a distinct stand-ready performance obligations and we allocate the transaction price to the performance obligations on a relative standalone-selling price basis and revenue is recognized ratably over each year. We consider the following factors for each professional services agreement: availability of the services from other vendors, the nature of the professional services, the timing of when the professional services contract was signed in comparison to the cloud-based software, start date and the contractual dependence of the cloud-based software on the customer’s satisfaction with the professional services work. To date, we have concluded that all of the professional services included in contracts with multiple performance obligations are distinct. We allocate the transaction price to each performance obligation on a relative standalone selling price (SSP) basis. The SSP is the estimated price at which we would sell a promised product or service separately to a customer. Judgment is required to determine the SSP for each distinct performance obligation. We establish SSP for both our subscription services and professional services elements primarily by considering the actual sales prices of the element when sold on a stand-alone basis or when sold together with other elements. If we are unable to rely on actual observable sales inputs, we determine SSP based on inputs such as actual sales prices when sold together with other promised subscriptions or services and other factors such as our overarching pricing objectives and strategies. Deferred Commissions We capitalize sales commission expenses and associated payroll taxes paid to internal sales personnel that are incremental to obtaining customer contracts. These costs are deferred and then amortized over the expected period of benefit, which is estimated to be five years for new customers. Commissions for existing customer renewals are deferred and amortized over twelve months. We have determined the period of benefit taking into consideration several factors including the expected subscription term and expected renewals of our customer contracts, the duration of our relationships with our customers, and the life of our technology. Amortization expense is included in Sales and marketing in the accompanying consolidated statements of comprehensive loss. Contract Assets Subscription services revenue is generally recognized ratably over the contract term beginning on the commencement date of each contract. Contract assets are included in Prepaid expenses and other current assets and Other assets in our consolidated balance sheets. The total value of our contract assets was $1.4 million and $2.8 million as of January 31, 2021 and 2020, respectively. For further detail regarding our remaining performance obligations please refer to Note 10. Deferred Revenue and Performance Obligations. Cost of Revenue Cost of subscription revenue primarily consists of costs relating to the hosting of our cloud-based software platform, including salaries and benefits of technical operations and support personnel, data communications costs, allocated overhead and property and equipment depreciation, amortization of internal-use software and purchased intangibles and the reduction in the carrying amount of ROU assets. Cost of professional services revenue primarily consists of the costs of delivering implementation services to customers of our cloud-based software platform, including salaries and benefits of professional services personnel and fees for third-party resources used in the delivery of implementation services. Advertising Expense Advertising costs are expensed as incurred. For the periods presented, advertising expense was not material. Concentrations of Credit Risk and Significant Clients and Suppliers Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, short-term investments and accounts receivable. We deposit our cash and short-term investments primarily with one financial institution and, accordingly, such deposits regularly exceed federally insured limits. No single customer accounted for more than 10% of Zuora’s revenue or accounts receivable balance in any of the periods presented. Cash and Cash Equivalents We consider all highly liquid investments with original or remaining maturities of three months or less on the purchase date to be cash equivalents. Cash and cash equivalents carrying value approximate fair value and consist primarily of bank deposits and money market funds. Restricted cash consists of letters of credit held with a financial institution related to our facility and equipment leases, and are classified as current or long-term in our consolidated balance sheets based on the maturities of the underlying letters of credit. We had no restricted cash as of January 31, 2021 and 2020. Short-term Investments We typically invest in high quality, investment grade securities from diverse issuers. We classify our short-term investments as available-for-sale. In general, these investments are free of trading restrictions. We carry these investments at fair value, based on quoted market prices or other readily available market information. Unrealized gains and losses, net of taxes, are included in accumulated other comprehensive income, which is reflected as a separate component of stockholders’ equity in our consolidated balance sheets. Gains and losses are recognized when realized in our consolidated statements of comprehensive loss. When we have determined that an other-than-temporary decline in fair value has occurred, the amount of the decline that is related to a credit loss is recognized in income. Gains and losses are determined using the specific identification method. We review our debt securities classified as short-term investments on a regular basis to evaluate whether or not any security has experienced an other-than-temporary decline in fair value. We consider factors such as the length of time and extent to which the market value has been less than the cost, the financial condition and near-term prospects of the issuer and our intent to sell, or whether it is more likely than not it will be required to sell the investment before recovery of the investment’s amortized cost basis. If we believe that an other-than-temporary decline exists in one of these securities, we will write down these investments to fair value. The portion of the write-down related to credit loss would be recorded to interest and other income (expense), net in our consolidated statements of comprehensive loss. Any portion not related to credit loss would be recorded to accumulated other comprehensive income, which is reflected as a separate component of stockholders' equity in our consolidated balance sheets. We may sell our short-term investments at any time, without significant penalty, for use in current operations or for other purposes, even if they have not yet reached maturity. As a result, we have classified our investments, including any securities with maturities beyond 12 months, as current assets in the accompanying consolidated balance sheets. Accounts Receivable Our accounts receivable consists of client obligations due under normal trade terms, and are reported at the principal amount outstanding, net of the allowance for credit losses. We maintain an allowance for credit losses that is based upon historical loss patterns, the number of days that billings are past due, and an evaluation of the potential risk of loss related to problem accounts. The allowance for credit losses consists of the following activity (in thousands): Fiscal Year Ended January 31, 2021 2020 Allowance for credit losses, beginning balance $ 2,943 $ 2,522 Additions: Charged to revenue 3,686 3,887 Charged to deferred revenue 2,666 2,092 Deductions: Write-offs to revenue (2,865) (4,634) Write-offs to deferred revenue (1,908) (924) Allowance for credit losses, ending balance $ 4,522 $ 2,943 Property and Equipment, Net Property and equipment are stated at cost. Depreciation is calculated on a straight-line basis over the estimated useful lives of the related assets, generally three Business Combinations When we acquire a business, management allocates the purchase price to the net tangible and identifiable intangible assets acquired. 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 assets acquired and liabilities assumed, especially with respect to 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, and the cost savings expected to be derived from acquiring an asset. These estimates are inherently uncertain and unpredictable. Goodwill, Acquired Intangible Assets, Internal-Use Software and Web Site Development Costs, and Impairment of Long-Lived Assets Goodwill. Goodwill represents the excess purchase consideration of an acquired business over the fair value of the net tangible and identifiable intangible assets. Goodwill is evaluated for impairment annually on December 1, and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. Triggering events that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate or a significant decrease in expected cash flows. An impairment loss is recognized to the extent that the carrying amount exceeds the reporting unit’s fair value, not to exceed the carrying amount of goodwill. We have the option to first assess qualitative factors to determine whether events or circumstances indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount and determine whether further action is needed. If, after assessing the totality of events or circumstances, we determine it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the quantitative impairment test is unnecessary. No impairment charges were recorded during fiscal 2021, 2020 or 2019. Acquired Intangible Assets . Acquired intangible assets consist of developed technology, customer relationships, and a trade name, resulting from Zuora’s acquisitions. Acquired intangible assets are recorded at fair value on the date of acquisition and amortized over their estimated useful lives on a straight-line basis. Internal-Use Software and Web Site Development Costs . We capitalize costs related to developing our suite of software solutions and our website when it is probable the expenditures will result in significant new functionality. Costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. Capitalized costs are recorded as part of property and equipment, net in our consolidated balance sheets. Maintenance and training costs are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life, which is generally three years. Impairment of Long-Lived Assets . The carrying amounts of long-lived assets, including property and equipment, capitalized internal-use software, acquired intangible assets, deferred commissions, and ROU assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable or that the useful life is shorter than originally estimated. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to future undiscounted net cash flows the asset is expected to generate over its remaining life. If the asset is determined to be impaired, the amount of any impairment recognized is measured as the difference between the carrying value and the fair value of the impaired asset. If the useful life is shorter than originally estimated, we amortize the remaining carrying value over the new shorter useful life. There were no material impairments recognized for fiscal 2021, 2020 or 2019. Income Taxes We use the asset-and-liability method of accounting for income taxes. Under this method, we recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, as well as for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. We record a valuation allowance to reduce our deferred tax assets to the net amount that we believe is more likely than not to be realized. In assessing the need for a valuation allowance, we have considered our historical levels of income, expectations of future taxable income and ongoing tax planning strategies. Because of the uncertainty of the realization of the deferred tax assets in the U.S., we have recorded a full valuation allowance against our deferred tax assets. Realization of our deferred tax assets is dependent primarily upon future U.S. taxable income. We recognize and measure tax benefits from uncertain tax positions using a two-step approach. The first step is to evaluate the tax position taken or expected to be taken by determining if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained in an audit, including resolution of any related appeals or litigation processes. 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. Significant judgment is required to evaluate uncertain tax positions. Although we believe that we have adequately reserved for our uncertain tax positions, it can provide no assurance that the final tax outcome of these matters will not be materially different. We evaluate our uncertain tax position on a regular basis and evaluations are based on a number of factors, including changes in facts and circumstances, changes in tax law, correspondence with tax authorities during the course of an audit and effective settlement of audit issues. 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 and could have a material impact on our financial condition and results of operations. The provision for income taxes includes the effects of any accruals that we believe are appropriate, as well as the related net interest and penalties. Stock-Based Compensation We measure our employee and director stock-based compensation awards, including purchase rights issued under the ESPP, based on the award's estimated fair value on the date of grant. Expense associated with these awards is recognized using the straight-line attribution method over the requisite service period for stock options, RSUs and restricted stock; and over the offering period for the purchase rights issued under the ESPP, and is reported in our consolidated statements of comprehensive loss. We estimate the fair value of our stock options, and purchase rights under the ESPP, using the Black-Scholes option-pricing model. The resulting fair value, net of estimated forfeitures, is recognized on a straight-line basis over the period during which an employee is required to provide service in exchange for the award. Stock options generally vest over four years and have a contractual term of ten years. ESPP purchase rights vest over the two We estimate the fair value of our restricted stock and RSU grants based on the grant date fair value of our common stock. The resulting fair value, net of estimated forfeitures, is recognized on a straight-line basis over the period during which an employee is required to provide service in exchange for the award, which is generally four years. Estimated forfeitures are based upon our historical experience and we revise our estimates, if necessary, in subsequent periods if actual forfeitures differ from initial estimates. Determining the grant date fair value of options, restricted stock, and RSUs requires management to make assumptions and judgments. These estimates involve inherent uncertainties and if different assumptions had been used, stock-based compensation expense could have been materially different from the amounts recorded. The assumptions and estimates for valuing stock options are as follows: • Fair value per share of Company’s common stock. Prior to the IPO, because there was no public market for Zuora’s common stock, our Board of Directors, with the assistance of a third-party valuation specialist, determined the common stock fair value at the time of the grant of stock options by considering a number of objective and subjective factors, including our actual operating and financial performance, market conditions and performance of comparable publicly traded companies, developments and milestones in the company, the likelihood of achieving a liquidity event, and transactions involving Zuora’s common stock, among other factors. After the IPO, we used the publicly quoted price of our common stock as reported on the New York Stock Exchange as the fair value of our common stock. • Expected volatility. We determine the expected volatility based on historical average volatilities of similar publicly traded companies corresponding to the expected term of the awards. • Expected term. We determine the expected term of awards which contain only service conditions using the simplified approach, in which the expected term of an award is presumed to be the mid-point between the vesting date and the expiration date of the award, as we do not have sufficient historical data relating to stock-option exercises. • Risk-free interest rate. The risk-free interest rate is based on the U.S. Treasury yield curve in effect during the period the options were granted corresponding to the expected term of the awards. • Estimated dividend yield. The estimated dividend yield is zero, as we do not currently intend to declare dividends in the foreseeable future. Net Loss per Share Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Options subject to early exercise that are exercised prior to vesting are excluded from the computation of weighted-average number of shares of common stock outstanding until such shares have vested. Diluted net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period increased by giving effect to all potentially dilutive securities to the extent they are dilutive. Leases On February 1, 2019, we adopted FASB ASU No. 2016-02, Leases (Topic 842), on a modified retrospective basis. Financial information related to periods prior to adoption are as originally reported under Topic 840, Leases . We determine if a contract is a lease or contains a lease at the inception of the contract and reassess that conclusion if the contract is modified. All leases are assessed for classification as an operating lease or a finance lease. Operating lease right-of-use (ROU) assets are presented separately in our consolidated balance sheet. Operating lease liabilities are also presented separately as current and non-current liabilities in our consolidated balance sheet. We do not have any finance lease ROU assets or liabilities. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. We do not obtain and control our right to use the identified asset until the lease commencement date. Our lease liabilities are recognized at the applicable lease commencement date based on the present value of the lease payments required to be paid over the lease term. When the rate implicit in the lease is not readily determinable, we use the incremental borrowing rate to discount the lease payments to present value. The estimated incremental borrowing rate is derived from information available at the lease commencement date and factors in a hypothetical interest rate on a collateralized basis with similar terms, payments and economic environments. Our ROU assets are also recognized at the applicable lease commencement date. The ROU asset equals the carrying amount of the related lease liability, adjusted for any lease payments made prior to lease commencement, minus any lease incentives received, and any direct costs incurred by the lessee. Any variable lease payments are expensed as incurred and do not factor into the measurement of the applicable ROU asset or lease liability. The term of our leases equals the non-cancellable period of the lease, including any rent-free periods provided by the lessor, and also includes options to renew or extend the lease (including by not terminating the lease) that we are reasonably certain to exercise. We establish the term of each lease at lease commencement and reassess that term in subsequent periods when one of the triggering events outlined in Topic 842 occurs. Operating lease cost for lease payments is recognized on a straight-line basis over the lease term. Our lease contracts often include lease and non-lease components. We have elected the practical expedient offered by the standard to not separate lease from non-lease components for our facilities leases and account for them as a single lease component. We have elected not to recognize ROU assets and lease liabilities for leases with a term of twelve months or less. Lease cost for these short-term leases is recognized on a straight-line basis over the lease term. Recent Accounting Pronouncements—Adopted in Fiscal 2021 In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments , and subsequently issued amendments to the initial guidance including ASU 2018-19, ASU 2019-04, ASU 2019-05, and ASU 2019-11 (collectively, Topic 326). Together, this guidance introduced a new impairment model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses (CECL). The new model uses a forward-looking expected loss method rather than the incurred loss model for recognizing credit losses. Additionally, any expected credit losses are to be reflected as allowances rather than reductions in the amortized cost of available-for-sale debt securities. We adopted Topic 326 beginning February 1, 2020 and the adoption of the standard did not have a material impact on our consolidated financial statements. However, the adoption resulted in modifying our policies for accounts receivable and available-for-sale securities as follows: Accounts Receivable: Trade accounts receivable are recorded at the invoiced amount. Prior to our adoption of Topic 326, the accounts receivable balance was reduced by an allowance for doubtful accounts that was determined based on our assessment of the collectability of customer accounts. Under Topic 326, we measure expected credit losses of accounts receivable on a collective (pool) basis, aggregating accounts receivable that have account balances above or below a certain threshold. For receivable balances below the threshold, we apply a credit-loss percentage that is based on our historical credit losses. For receivable balances above the threshold, we perform an analysis on the related customers and reserve the full receivable balance for any customer accounts where collectability may be at risk. The COVID-19 pandemic and recent economic downturn also prompted us to include additional reserves for customers in industries that could be more heavily impacted by these events. We will reassess the impact of these events and any other events that may arise in the future in developing our estimates for expected credit losses, and will make any necessary adjustments to the related reserve balance. The allowance for credit losses balance was $4.5 million as of January 31, 2021, and the allowance for doubtful accounts balance was $2.9 million as of January 31, 2020. Available-for-Sale Securities: Available-for-sale securities are reported at fair value, with unrealized gains and losses and the related tax impact included as a separate component of stockholders’ equity and in comprehensive loss. Accrued interest of $0.2 million as of January 31, 2021 is excluded from both the fair value and the amortized cost of our available-for-sale securities and is recorded in prepaid expenses and other current assets in our consolidated balance sheet. We elected not to record an allowance for credit losses for accrued interest on available-for-sale securities and will reverse the accrued interest against interest income in the period in which it is determined that the accrued interest is uncollectible. Prior to fiscal 2021, we followed the guidance in ASC 320 Investments-Debt and Equity Securities in determining whether unrealized losses were other than temporary. Under Topic 326, we now consider whether unrealized losses have resulted from a credit loss or other factors. We had no significant unrealized losses on our available-for-sale securities as of January 31, 2021 and as of January 31, 2020, and do not expect credit losses on our current investments in future periods. Therefore, we concluded that an allowance for credit losses was unnecessary as of the February 1, 2020 adoption date or as of January 31, 2021. We had no significant realized losses on available-for-sale securities during the fiscal year ended January 31, 2021. We use the specific identification method to determine the cost basis of investments sold. |
Investments
Investments | 12 Months Ended |
Jan. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Note 3. Investments The amortized costs, unrealized gains and losses and estimated fair values of our short-term investments as of January 31, 2021 were as follows (in thousands): As of January 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government securities $ 18,007 $ 28 $ — $ 18,035 Corporate bonds 25,888 8 (3) 25,893 Commercial paper 48,556 — — 48,556 Total short-term investments $ 92,451 $ 36 $ (3) $ 92,484 The amortized costs, unrealized gains and losses and estimated fair values of our short-term investments as of January 31, 2020 were as follows (in thousands): As of January 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government securities $ 34,053 $ 41 $ — $ 34,094 Corporate bonds 45,601 81 — 45,682 Commercial paper 37,886 — — 37,886 Total short-term investments $ 117,540 $ 122 $ — $ 117,662 There were no material realized gains or losses from sales of marketable securities that were reclassified out of accumulated other comprehensive income into investment income during fiscal 2021 and 2020. All securities had stated effective maturities of less than two years as of January 31, 2021. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 4. Fair Value Measurements The accounting guidance for fair value measurements establishes a three-tier hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows: Level input Input definition Level 1 Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets Level 2 Inputs other than quoted prices included within Level 1 that are observable for the asset or liability through corroboration with market data at the measurement date Level 3 Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date In general, and where applicable, we use quoted prices in active markets for identical assets or liabilities to determine fair value. If quoted prices in active markets for identical assets or liabilities are not available to determine fair value, then we use quoted prices for similar assets and liabilities or inputs other than the quoted prices that are observable either directly or indirectly. The following tables summarize our fair value hierarchy for our financial assets measured at fair value on a recurring basis (in thousands): As of January 31, 2021 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 85,664 $ — $ — $ 85,664 Short-term investments: U.S. government securities $ — $ 18,035 $ — $ 18,035 Corporate bonds — 25,893 — 25,893 Commercial paper — 48,556 — 48,556 Total short-term investments $ — $ 92,484 $ — $ 92,484 As of January 31, 2020 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 37,906 $ — $ — $ 37,906 Short-term investments: U.S. government securities $ — $ 34,094 $ — $ 34,094 Corporate bonds — 45,682 — 45,682 Commercial paper — 37,886 — 37,886 Total short-term investments $ — $ 117,662 $ — $ 117,662 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Jan. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Note 5. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): As of January 31, 2021 2020 Prepaid software subscriptions $ 5,087 $ 4,036 Prepaid insurance 2,317 1,630 Prepaid hosting costs 1,847 1,611 Contract assets 1,381 2,476 Taxes 477 729 Insurance recovery receivable 344 1,442 Other 4,121 4,463 $ 15,574 $ 16,387 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Jan. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Note 6. Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): As of January 31, 2021 2020 Software $ 19,711 $ 15,329 Leasehold improvements 18,978 16,865 Servers 14,179 14,596 Computer equipment 12,824 11,249 Furniture and fixtures 5,228 4,987 Vehicles 105 108 71,025 63,134 Less: accumulated depreciation and amortization (37,656) (29,645) Total $ 33,369 $ 33,489 The following table summarizes the capitalized internal-use software costs included within the Software line item in the table above (in thousands): Fiscal Year Ended January 31, 2021 2020 2019 Internal-use software costs capitalized during the period $ 4,235 $ 4,552 $ 2,280 January 31, 2021 January 31, 2020 Total capitalized internal-use software, net of accumulated amortization $ 8,704 $ 6,276 The following table summarizes total depreciation and amortization expense related to property and equipment, including amortization of internal-use software, included in Operating expenses and Cost of subscription revenue in the accompanying consolidated statements of comprehensive loss (in thousands): Fiscal Year Ended January 31, 2021 2020 2019 Total depreciation and amortization expense $ 10,571 $ 9,528 $ 6,542 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Jan. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Note 7. Intangible Assets and Goodwill Intangible Assets The following table summarizes the purchased intangible asset balances (in thousands): As of January 31, 2021 Gross Accumulated Net Carrying Developed technology $ 7,697 $ (6,243) $ 1,454 Customer relationships 4,287 (2,246) 2,041 Trade name 909 (476) 433 Total $ 12,893 $ (8,965) $ 3,928 As of January 31, 2020 Gross Accumulated Net Carrying Developed technology $ 7,697 $ (5,152) $ 2,545 Customer relationships 4,287 (1,775) 2,512 Trade name 909 (346) 563 Total $ 12,893 $ (7,273) $ 5,620 Amortization expense related to purchased intangible assets was $1.7 million, $1.8 million and $2.3 million for fiscal 2021, 2020 and 2019, respectively. Amortization expense related to purchased intangible assets is included in cost of subscription revenue in the accompanying consolidated statements of comprehensive loss. The expected future amortization expense for intangible assets as of January 31, 2021 is as follows (in thousands): Fiscal 2022 $ 1,692 Fiscal 2023 964 Fiscal 2024 601 Fiscal 2025 514 Fiscal 2026 157 $ 3,928 Goodwill There were no changes in the carrying amount of goodwill for the years ended January 31, 2021 and 2020. Zuora has one reporting unit. We performed an annual test for goodwill impairment as of December 1, 2020 and determined that goodwill was not impaired. In addition, there have been no significant events or circumstances affecting the valuation of goodwill subsequent to our annual assessment. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Jan. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Note 8. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): As of January 31, 2021 2020 Accrued taxes $ 4,377 $ 4,803 Accrued hosting and third-party licenses 3,073 1,846 Accrued outside services and consulting 2,380 2,800 Accrued property and equipment 21 3,442 Other accrued expenses 4,699 4,840 Total $ 14,550 $ 17,731 |
Debt
Debt | 12 Months Ended |
Jan. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Note 9. Debt In June 2017, we entered into a loan and security agreement with Silicon Valley Bank that includes both a revolving and term loan facility. In October 2018, the agreement was amended (First Amendment) to, among other things, increase the availability under the revolving loan to $30.0 million (from $10 million), lower the borrowing costs under both the revolving and term loans to the prime rate published by the Wall Street Journal (WSJ Prime Rate) minus 1.00%, extend the interest-only repayment period under the term loan until June 2019, after which time principal and interest would become due in thirty-six (36) equal monthly installments, extend the revolving loan maturity date until October 2021, and extend the latest term loan maturity date until June 2022. In January 2021, the agreement was amended (Second Amendment) to, among other things, extend the maturity of the revolving line of credit by twelve (12) months to October 2022, and remove SVB's first priority security interest in our intellectual property while retaining specified restrictions on our ability to make certain transfers and encumbrances on our intellectual property. The Amendment contains customary representations and warranties. Together, the loan and security agreement, the First Amendment and Second Amendment constitute the Debt Agreement. We accounted for the First Amendment and Second Amendment as debt modifications and we are recognizing the related fees ratably through October 2022. Revolving Loan. The Debt Agreement allows us to borrow up to $30.0 million until October 2022 in revolving loans. Advances drawn down under the revolving loan incur interest at the WSJ Prime Rate minus 1.00% which is due monthly on any amounts drawn down, with the principal due at maturity. Any outstanding amounts must be fully repaid by October 2022. As of January 31, 2021, we had not drawn down any amounts under this revolving loan. Term Loan. Under the Debt Agreement, we borrowed $15.0 million in term loans in June 2017 to partially finance the acquisition of Leeyo. Any outstanding amounts under the term loan accrue interest at the WSJ Prime rate minus 1.00%. The interest rate was 2.25% as of January 31, 2021. Payments were interest only through June 2019, after which date equal monthly payments of principal and interest over the following 36 months are due until the term loan is repaid. We may prepay all outstanding principal and accrued interest at any time without penalty. We will incur a fee of 1.5% of the original principal amount of the term loan, or $225,000, upon the earlier to occur of prepayment or the termination of the facility. As of January 31, 2021 and 2020, we had $6.0 million and $10.5 million outstanding under the term loan, respectively. Both the revolving loan and the term loan are subject to a certain financial covenant to maintain an adjusted quick ratio of no less than 1.10:1.00. As of January 31, 2021, we were in compliance with this financial covenant. The Debt Agreement also imposes certain limitations with respect to lines of business, mergers, investments and acquisitions, additional indebtedness, distributions, guarantees, liens, and encumbrances, and requires an adjusted quick ratio of 1.25:1.00 in connection with certain corporate events such as permitted stock repurchases and acquisitions. We incurred transaction costs and fees payable to the lender related to the issuance of the term loan. The amount, net of amortization, is immaterial and is presented as a reduction to the carrying amount of the term loan and is presented under debt in our consolidated balance sheets. Our indebtedness under the Debt Agreement is secured by a lien on substantially all of Zuora's assets. |
Deferred Revenue and Performanc
Deferred Revenue and Performance Obligations | 12 Months Ended |
Jan. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue and Performance Obligations | Note 10. Deferred Revenue and Performance Obligations The following table summarizes revenue recognized during the period that was included in the deferred revenue balance at the beginning of each respective period (in thousands): Fiscal Year Ended January 31, 2021 2020 2019 Revenue recognized from deferred revenue $ 107,091 $ 79,057 $ 53,861 As of January 31, 2021, total remaining non-cancellable performance obligations under our subscription contracts with customers was approximately $317.1 million and we expect to recognize revenue on approximately 64% of these remaining performance obligations over the next 12 months. Remaining performance obligations under our professional services contracts as of January 31, 2021 were not material. |
Geographical Information
Geographical Information | 12 Months Ended |
Jan. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Geographical Information | Note 11. Geographical Information Disaggregation of Revenue Revenue by geographical location, based on the customer’s address at the time of sale, was as follows (in thousands): Fiscal Year Ended January 31, 2021 2020 2019 United States $ 200,273 $ 190,208 $ 168,221 Others 105,147 85,849 66,768 Total $ 305,420 $ 276,057 $ 234,989 Percentage of revenue by geographic area: United States 66 % 69 % 72 % Other 34 % 31 % 28 % Other than the United States, no individual country exceeded 10% of total revenue for fiscal 2021, 2020 and 2019. Long-lived assets Long-lived assets, which consist of property and equipment, net, purchased intangible assets, net, deferred commissions, and operating lease ROU assets by geographic location, is based on the location of the legal entity that owns the asset. As of January 31, 2021, no individual country exceeded 10% of total long-lived assets other than the United States. |
Leases
Leases | 12 Months Ended |
Jan. 31, 2021 | |
Leases [Abstract] | |
Leases | Note 12. Leases We have non-cancelable operating leases for our offices located in the U.S. and abroad. As of January 31, 2021, these leases expire on various dates between 2021 and 2030. Certain lease agreements include one or more options to renew, with renewal terms that can extend the lease up to seven years. We have the right to exercise or forego the lease renewal options. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of leases and lease costs were as follows (in thousands): January 31, 2021 2021 2020 Operating lease right-of-use assets $ 47,085 $ 54,286 Operating lease liabilities, current portion 9,630 5,755 Operating lease liabilities, net of current portion 53,590 62,307 Total operating lease liabilities $ 63,220 $ 68,062 Fiscal Year Ended January 31, 2021 2020 Operating lease cost 1 $ 11,933 $ 11,737 (1) Includes costs related to our short-term operating leases as follows (in thousands): Fiscal Year Ended January 31, 2021 2020 Short-term operating lease cost $ 193 $ 706 The future maturities of operating lease liabilities for each fiscal year were as follows (in thousands): January 31, 2022 $ 12,374 2023 11,797 2024 9,569 2025 6,386 2026 6,242 Thereafter 29,897 Total lease payments 76,265 Less imputed interest (13,045) Present value of lease liabilities $ 63,220 Other supplemental information related to our long-term operating leases includes the following (dollars in thousands): January 31, 2021 2021 2020 Weighted-average remaining operating lease term (years) 7.8 8.3 Weighted-average operating lease discount rate 4.7 % 4.7 % Fiscal Year Ended January 31, 2021 2020 Supplemental Cash Flow Information Cash paid (received) for amounts included in the measurement of lease liabilities: Cash paid for operating leases $ 9,693 $ 9,544 Cash received on operating lease incentives — (10,033) Operating cash flows resulting from operating leases $ 9,693 $ (489) New right-of-use assets obtained in exchange for lease liabilities: Operating leases obtained $ 1,064 $ 63,106 As of January 31, 2021, we had $4.1 million of undiscounted future payments for operating leases that have not yet commenced, which are excluded from the tables above and are not yet recognized in our consolidated balance sheets. These operating leases are expected to commence in fiscal year 2022 and have a lease term of two |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13. Commitments and Contingencies Letters of Credit In connection with the execution of certain facility leases, we had bank issued irrevocable letters of credit for $4.7 million, $4.7 million and $2.1 million as of January 31, 2021, 2020 and 2019, respectively. No draws have been made under such letters of credit. Legal Proceedings From time to time, we may be subject to legal proceedings, as well as demands, claims and threatened litigation. The outcomes of legal proceedings and other contingencies are inherently unpredictable, subject to significant uncertainties, and could be material to our operating results and cash flows for a particular period. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources, and other factors. Other than the matters described below, we are not currently party to any legal proceeding that management believes could have a material adverse effect on our business, operating results, cash flows, or financial condition should such litigation or claim be resolved unfavorably. Securities Class Actions In June 2019, a putative securities class action lawsuit was filed in the U.S. District Court for the Northern District of California naming Zuora and certain of our officers as defendants. The complaint purports to bring suit on behalf of stockholders who purchased or otherwise acquired our securities between April 12, 2018 and May 30, 2019. The complaint alleges that defendants made false and misleading statements about our business, operations and prospects in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (Exchange Act), and seeks unspecified compensatory damages, fees and costs. In November 2019, the lead plaintiff filed a consolidated amended complaint asserting the same claims. In April 2020, the Court denied defendants’ motion to dismiss. Discovery in the case is ongoing. In April and May 2020, two putative securities class action lawsuits were filed in the Superior Court of the State of California, County of San Mateo, naming as defendants Zuora and certain of our current and former officers, our directors and the underwriters of our IPO. The complaints purport to bring suit on behalf of stockholders who purchased or otherwise acquired our securities pursuant or traceable to the Registration Statement and Prospectus issued in connection with our IPO and allege claims under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933. The suits seek unspecified damages and other relief. In July 2020, the court entered an order consolidating the two lawsuits, and the lead plaintiff filed a consolidated amended complaint asserting the same claims. In October 2020, the court denied defendants’ demurrer as to the Section 11 and Section 15 claims and granted the demurrer as to the Section 12(a)(2) claim with leave to file an amended complaint. In November 2020, the lead plaintiff filed an amended consolidated complaint. Defendants' demurrer to the Section 12(a)(2) claim was sustained with further leave to amend. Given the procedural posture and the nature of such litigation matters, we are unable to estimate the reasonably possible loss or range of loss, if any, that may result from these matters. We dispute the claims described above and intend to vigorously defend against them. Derivative Litigation In September 2019, two stockholder derivative lawsuits were filed in the U.S. District Court for the Northern District of California against certain of our directors and executive officers and naming Zuora as a nominal defendant. The derivative actions allege claims based on events similar to those in the securities class actions and assert causes of action against the individual defendants for breach of fiduciary duty, unjust enrichment, waste of corporate assets, and for making false and misleading statements about our business, operations, and prospects in violation of Section 14(a) of the Exchange Act. Plaintiffs seek corporate reforms, unspecified damages and restitution, and fees and costs. In November 2019, the stockholder derivative lawsuits, which are related to the federal securities class action, were assigned to the same judge who is overseeing the federal securities class action lawsuit. In February 2020, the court entered an order consolidating the two derivative lawsuits. In August 2020, the court entered an order staying the consolidated action until the completion of fact discovery in the federal securities class action. In May and June 2020, two stockholder derivative lawsuits were filed in the U.S. District Court for the District of Delaware against certain of our directors and current and former executive officers. The derivative actions allege claims based on events similar to those in the securities class actions and the derivative actions pending in the Northern District of California and assert causes of action against the individual defendants for breach of fiduciary duty, unjust enrichment, waste of corporate assets, contribution, and for making false and misleading statements about our business, operations, and prospects in violation of Section 14(a) of the Exchange Act. Plaintiff seeks corporate reforms, unspecified damages and restitution, and fees and costs. In June 2020, the court entered an order consolidating the two Delaware derivative lawsuits. In August 2020, the court entered an order staying the consolidated action until the completion of fact discovery in the federal securities class action. In February and March 2021, two additional stockholder derivative lawsuits were filed in Delaware Chancery Court against certain current and former officers and directors alleging similar claims based on the same events as above. Given the procedural posture and the nature of such litigation matters, we are unable to estimate the reasonably possible loss or range of loss, if any, that may result from these matters. Other Contractual Obligations As of January 31, 2021, we had a contractual obligation to make $13.3 million in purchases of cloud computing services provided by one of our vendors by September 30, 2021. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 14. Income Taxes Net loss before provision for income taxes consisted of the following (in thousands): Fiscal Year Ended January 31, 2021 2020 2019 Domestic $ (77,140) $ (84,988) $ (79,804) Foreign 5,839 2,035 8,970 Loss before income taxes $ (71,301) $ (82,953) $ (70,834) The components of our income tax provision are as follows (in thousands): Fiscal Year Ended January 31, 2021 2020 2019 Current: Federal $ — $ — $ — State 46 72 81 International 1,480 481 1,406 $ 1,526 $ 553 $ 1,487 Deferred: Federal $ — $ (29) $ — State — — — International 347 (83) 420 Income tax provision $ 1,873 $ 441 $ 1,907 Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Our deferred income tax assets and liabilities consisted of the following (in thousands): As of January 31, 2021 2020 Deferred tax assets: Net operating loss carryforwards $ 108,390 $ 94,805 Tax credit carryforwards 9,849 8,525 Allowances and other 12,727 12,095 Depreciation and amortization 1,417 906 Operating lease liability 15,627 16,358 Total deferred tax assets $ 148,010 $ 132,689 Deferred tax liabilities: Deferred commissions $ (9,002) $ (7,707) Intangibles (3,057) (3,004) Operating lease right-of-use asset (11,718) (12,639) Total deferred tax liabilities (23,777) (23,350) Valuation allowance (126,149) (110,908) Net deferred tax liabilities $ (1,916) $ (1,569) We have assessed, based on available evidence, both positive and negative, it is more likely than not that the deferred tax assets will not be utilized, such that a valuation allowance has been recorded. The valuation allowance increased by $15.2 million and $23.9 million, respectively, for fiscal 2021 and 2020. As of January 31, 2021, we had U.S. federal and state net operating loss carryforwards of approximately $426.5 million and $286.2 million, respectively, available to offset future taxable income. As of January 31, 2020, we had U.S. federal and state net operating loss carryforwards of approximately $366.4 million and $269.9 million, respectively, available to offset future taxable income. If not utilized, these carryforward losses will expire in various amounts for federal and state tax purposes beginning in 2028. In addition, Zuora has approximately $188.4 million of federal net operating loss carryforwards that arose after the 2017 tax year, which are available to reduce future federal taxable income, if any, over an indefinite period. The utilization of those net operating loss carryforwards is limited to 80% of taxable income in any given year. We have approximately $8.4 million and $10.5 million of federal and state research and development tax credits, respectively, available to offset future taxes as of January 31, 2021, and approximately $7.4 million and $8.9 million of federal and state research and development tax credits, respectively, available to offset future taxes as of January 31, 2020. If not utilized, the federal credits will begin to expire in 2031. California state research and development tax credits may be carried forward indefinitely. Utilization of the net operating loss and tax credit carryforwards may be subject to a substantial annual limitation due to the "ownership change" limitations provided by Section 382 and 383 of the Internal Revenue Code of 1986, as amended, and other similar state provisions. Any annual limitation may result in the expiration of net operation loss and tax credit carryforwards before utilization. Furthermore, under the Tax Reform Act, although the treatment of tax losses generated in taxable years ending before December 31, 2017 has generally not changed, tax losses generated in taxable years beginning after December 31, 2017 may be utilized to offset no more than 80% of taxable income annually. This change may require us to pay federal income taxes in future years despite generating a loss for federal income tax purposes in the current and prior years. On March 27, 2020, the CARES Act was enacted and signed into U.S. law to provide economic relief to individuals and businesses facing economic hardship as a result of the COVID-19 pandemic. Changes in tax laws or rates are accounted for in the period of enactment. Under the CARES Act, we deferred payment of $3.6 million in employer FICA taxes related to the period from March 27, 2020 through December 31, 2020, of which 50% is due for payment on December 31, 2021 and the remaining 50% is due on December 31, 2022. The income tax provisions of the CARES Act did not have a significant impact on our current taxes, deferred taxes, and uncertain tax positions. The amount of accumulated foreign earnings of our foreign subsidiaries was immaterial as of January 31, 2021. If our foreign earnings were repatriated, additional tax expense might result. Any additional taxes associated with such repatriation would be immaterial. A reconciliation of the U.S. federal statutory tax rate to our provision for income tax is as follows (dollars in thousands): Fiscal Year Ended January 31, 2021 2020 2019 Amount Amount Amount Federal income tax benefit at statutory rates $ (14,973) $ (17,420) $ (14,875) State income taxes, net of effect of federal (2,072) (3,859) (3,337) Permanent differences 718 1,174 1,242 Federal and state R&D credits (1,325) (1,235) (1,029) Impact from international operations 600 (31) 1,340 Stock-based compensation and other 3,685 (3,427) (476) Change in valuation allowance 15,240 25,239 19,042 Income tax provision $ 1,873 $ 441 $ 1,907 We are required to inventory, evaluate, and measure all uncertain tax positions taken or to be taken on tax returns and to record liabilities for the amount of such positions that may not be sustained, or may only partially be sustained, upon examination by the relevant taxing authorities. As of January 31, 2021, our total gross unrecognized tax benefits were $9.4 million exclusive of interest and penalties described below. As of January 31, 2020, our total gross unrecognized tax benefits were $8.1 million exclusive of interest and penalties described below. Because of our valuation allowance position, $0.7 million of unrecognized tax benefits, if recognized, would reduce the effective tax rate in a future period. We do not expect that the total amounts of unrecognized tax benefits will significantly increase or decrease within twelve months of the reporting date. A reconciliation of the beginning and ending amounts of uncertain tax position is as follows (in thousands): Fiscal Year Ended January 31, 2021 2020 2019 Gross amount of unrecognized tax benefits as of the beginning of the period $ 8,070 $ 6,588 $ 5,918 Increase for tax positions related to prior years — — 8 Decrease for tax positions related to prior years (5) (18) (366) Increase for tax positions related to the current year 1,320 1,500 1,028 Gross amount of unrecognized tax benefits as of the end of the period $ 9,385 $ 8,070 $ 6,588 We file tax returns in the U.S. federal and various state and foreign jurisdictions. All U.S. federal and state jurisdictions remain subject to examination by tax authorities due to the carryforward of unused net operating losses and research and development credits. In addition, tax years starting from 2007 are subject to examination. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jan. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Note 15. Stockholders' Equity Preferred Stock As of January 31, 2021, we had authorized 10 million shares of preferred stock, each with a par value of $0.0001 per share. As of January 31, 2021, no shares of preferred stock were issued and outstanding. Common Stock Prior to the IPO, all shares of common stock then outstanding were reclassified into Class B common stock. Shares offered and sold in the IPO consisted of newly authorized shares of Class A common stock. Holders of Class A and Class B common stock are entitled to one vote per share and ten votes per share, respectively, and the shares of Class A common stock and Class B common stock are identical, except for voting rights and the right to convert Class B shares to Class A shares. As of January 31, 2021, we had authorized 500 million shares of Class A common stock and 500 million shares of Class B common stock, each with a par value of $0.0001 per share. As of January 31, 2021, 109.9 million shares of Class A common stock and 11.0 million shares of Class B common stock were issued and outstanding. Charitable Contributions During fiscal 2021, we donated 73,964 shares of our Class A common stock to a charitable donor-advised fund and recognized $1.0 million as a non-cash general and administrative expense in our consolidated statement of comprehensive loss. Accumulated Other Comprehensive Income Components of accumulated other comprehensive income were as follows (in thousands): Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Available-for-Sale Securities Total Balance, January 31, 2020 $ 95 $ 93 $ 188 Foreign currency translation adjustment 696 — 696 Unrealized gain on available-for-sale securities, net of tax — (88) (88) Balance, January 31, 2021 $ 791 $ 5 $ 796 |
Employee Stock Plans
Employee Stock Plans | 12 Months Ended |
Jan. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Employee Stock Plans | Note 16. Employee Stock Plans Equity Incentive Plans In March 2018, our Board of Directors adopted and our stockholders approved the 2018 Equity Incentive Plan. The 2018 Plan authorizes the award of stock options, restricted stock awards, stock appreciation rights, RSUs, performance awards, and stock bonuses. As of January 31, 2021, approximately 20.4 million shares of Class A common stock were reserved and available for issuance under the 2018 Plan. In addition, as of January 31, 2021, 7.3 million stock options and RSUs exercisable or settleable for Class B common stock were outstanding in the aggregate under our 2006 Stock Plan (2006 Plan) and 2015 Equity Incentive Plan (2015 Plan), which plans were terminated in May 2015 and April 2018, respectively. The 2006 Plan and 2015 Plan continue to govern outstanding equity awards granted thereunder. Stock Options The following table summarizes stock option activity and related information (in thousands except exercise price and contractual term): Shares Weighted Average Aggregate Balance as of January 31, 2020 13,701 $ 7.64 6.9 $ 107,186 Granted 2,462 11.72 Exercised (2,725) 4.33 Forfeited (1,626) 12.91 Balance as of January 31, 2021 11,812 8.54 6.6 80,212 Exercisable as of January 31, 2021 7,750 9.50 5.5 73,656 Vested and expected to vest as of January 31, 2021 11,340 $ 8.35 6.5 $ 79,107 Fiscal Year Ended January 31, 2021 2020 2019 Weighted-average grant date fair value per share of options granted during each respective period $ 4.69 $ 6.92 $ 6.81 Aggregate intrinsic value of options exercised during each respective period $ 22,677 $ 39,652 $ 42,912 We used the Black-Scholes option-pricing model to estimate the fair value of our stock options granted with the following assumptions: Fiscal Year Ended January 31, 2021 2020 2019 Expected volatility 41.4% - 42.4% 35.0% - 39.0% 32.4% - 40.9% Expected term (in years) 6.0 - 6.1 5.6 - 6.5 5.1 - 6.4 Risk-free interest rate 0.4% - 0.6% 1.4% - 2.5% 2.6% - 3.0% Expected dividend yield — — — RSU and Restricted Stock Award Activity The following table summarizes RSU and restricted stock award activity and related information (in thousands except grant date fair value): Number of RSUs and Restricted Stock Awards Weighted-Average Grant Date Fair Value Balance as of January 31, 2020 5,029 $ 18.09 Granted 7,979 11.55 Vested (2,932) 14.63 Forfeited (1,798) 15.67 Balance as of January 31, 2021 8,278 $ 13.54 2018 Employee Stock Purchase Plan In March 2018, our Board of Directors adopted and our stockholders approved the 2018 Employee Stock Purchase Plan (ESPP). A total of 3.1 million shares of Class A common stock were reserved and available for issuance under the ESPP as of January 31, 2021. The ESPP provides for 24-month offering periods beginning June 15 and December 15 of each year, and each offering period will consist of four, six We estimated the fair value of ESPP purchase rights using a Black-Scholes option pricing model with the following assumptions: Fiscal Year Ended January 31, 2021 2020 2019 Expected volatility 43.6% - 69.1% 35.2% - 42.6% 24.6% - 42.4% Expected term (in years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.2 Risk-free interest rate 0.1% - 0.2% 1.5% - 2.2% 2.0% - 2.8% Expected dividend yield — — — Stock-based Compensation Expense Stock-based compensation expense was recorded in the following cost and expense categories in the accompanying consolidated statements of comprehensive loss (in thousands): As of January 31, 2021 2020 2019 Cost of subscription revenue $ 4,849 $ 2,772 $ 1,967 Cost of professional services revenue 9,952 7,265 5,900 Research and development 19,562 17,568 6,345 Sales and marketing 15,839 11,129 7,384 General and administrative 9,081 6,312 3,761 Total stock-based compensation expense $ 59,283 $ 45,046 $ 25,357 During the three months ended July 31, 2020, in light of the COVID-19 pandemic and for retention purposes, we issued RSU grants for 0.7 million shares of Class A common stock to eligible non-executive employees. These RSU awards have fully vested and we recognized $7.6 million of stock-based compensation expense related to these awards during fiscal year 2021. As of January 31, 2021, unrecognized compensation costs related to unvested equity awards and the weighted-average remaining period over which those costs are expected to be realized were as follows (dollars in thousands): Stock Options RSUs ESPP Unrecognized compensation costs $ 20,239 $ 92,731 $ 8,666 Weighted-average remaining recognition period 2.7 years 3.1 years 1.1 years |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Jan. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Note 17. Net Loss Per Share We calculate our basic and diluted net loss per share in conformity with the two-class method required for companies with participating securities. Under the two-class method, basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding for the period, less shares subject to repurchase. The diluted net loss per share is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, options to purchase common stock, restricted stock units, shares issuable pursuant to our ESPP, and shares subject to repurchase from early exercised options and unvested restricted stock are considered common stock equivalents but have been excluded from the calculation of diluted net loss per share as their effect is antidilutive. The rights, including the liquidation and dividend rights, of the holders of our Class A and Class B common stock are identical, except with respect to voting and conversion. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis and the resulting net loss per share will, therefore, be the same for both Class A and Class B common stock on an individual or combined basis. We did not present dilutive net loss per share on an as-if converted basis because the impact was not dilutive. The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data): Fiscal Year Ended January 31, 2021 2020 2019 Numerator: Net loss $ (73,174) $ (83,394) $ (72,741) Denominator: Weighted-average common shares outstanding, basic and diluted 117,598 111,122 91,267 Net loss per share, basic and diluted $ (0.62) $ (0.75) $ (0.80) Since Zuora was in a loss position for all periods presented, basic net loss per share is the same as diluted net loss per share as the inclusion of all potential common shares outstanding would have been anti-dilutive. Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows (in thousands): As of January 31, 2021 2020 2019 Issued and outstanding stock options 11,812 13,701 14,784 Unvested RSUs and restricted stock issued and outstanding 8,278 5,029 3,078 Shares committed under ESPP 139 116 141 Total 20,229 18,846 18,003 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Policies) | 12 Months Ended |
Jan. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements, which include the accounts of Zuora and its wholly owned subsidiaries, have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP principles requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the consolidated financial statements, as well as reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates. Our most significant estimates and assumptions are related to revenue recognition with respect to the determination of the relative standalone selling prices for our services; the expected period of benefit over which deferred commissions are amortized; determination of the fair value of our common stock for valuation of stock-based awards issued prior to the completion of the IPO; valuation of stock-based awards; estimates of allowance for credit losses; estimates of the fair value of goodwill; useful lives of intangibles and other long-lived assets; and the valuation of deferred income tax assets and contingencies. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results may differ materially from these estimates under different assumptions or conditions. |
Foreign Currency | Foreign Currency The functional currencies of our foreign subsidiaries are the respective local currencies. Translation adjustments arising from the use of differing exchange rates from period to period are included in accumulated other comprehensive income within our consolidated balance sheets. Foreign currency transaction gains and losses are included in interest and other income (expense), net in the consolidated statements of comprehensive loss and were not material for fiscal 2021, 2020 and 2019. All assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenue and expenses are translated at the average exchange rate during the period, and equity balances are translated using historical exchange rates. |
Segment Information | Segment Information We operate as one operating segment. Our chief operating decision maker is our Chief Executive Officer, who primarily reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources. |
Revenue Recognition Policy | Revenue Recognition Policy We generate revenue primarily from two sources: (1) subscription services, which is comprised of revenue from subscription fees from customers accessing our cloud-based software; and (2) professional services and other revenue. For the year ended January 31, 2021, subscription revenue was $242.3 million and professional services and other revenue was $63.1 million. Revenue is recognized upon satisfaction of performance obligations in an amount that reflects the consideration we expect to receive in exchange for those products or services. We determine the amount of revenue to be recognized through application of 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 we satisfy the performance obligations. Our subscription service arrangements are typically non-cancelable for a pre-specified subscription term and do not typically contain refund-type provisions. Subscription Services Subscription services revenue is primarily comprised of fees that provide customers with access to our cloud-based software during the term of the arrangement. Cloud-based services typically allow our customers to use our multi-tenant software without taking possession of the software. Revenue is generally recognized ratably over the contract term beginning on the commencement date of each contract, which is the date our cloud-based software is made available to customers. We generally invoice for subscription services annually or quarterly in advance of services being performed. On-Premise Arrangements We inherited some legacy on-premise license arrangements when we acquired a business in fiscal 2018. These licenses are primarily term based and bundled with related maintenance (PCS). Revenue for the software license is generally recognized at the beginning of the contract term and the PCS is recognized ratably over the contract term. Subscription and on-premise license agreements generally have terms ranging from one Professional Services and Other Revenue Professional services revenue consists of fees for services related to helping our customers deploy, configure, and optimize the use of our solutions. These services include system integration, data migration, process enhancement, and training. Professional services projects generally take three Contracts with Multiple Performance Obligations We enter into contracts with our customers that often include cloud-based software subscriptions and professional services performance obligations. A performance obligation is a commitment in a contract with a customer to transfer products or services that are distinct. Determining whether products and services are distinct performance obligations that should be accounted for separately or combined as one unit of accounting may require judgment. Our cloud-based software subscriptions are distinct as such services are often sold separately. In addition, our subscription services contracts can include multi-year agreements that include a fixed annual platform fee and a volume block usage fee that may vary based on permitted volume usage each year. To the extent that permitted volume usage each year is the same, we have concluded that there is one multi-year stand-ready performance obligation. To the extent that permitted volume usage each year varies, we have concluded that each year represents a distinct stand-ready performance obligations and we allocate the transaction price to the performance obligations on a relative standalone-selling price basis and revenue is recognized ratably over each year. We consider the following factors for each professional services agreement: availability of the services from other vendors, the nature of the professional services, the timing of when the professional services contract was signed in comparison to the cloud-based software, start date and the contractual dependence of the cloud-based software on the customer’s satisfaction with the professional services work. To date, we have concluded that all of the professional services included in contracts with multiple performance obligations are distinct. We allocate the transaction price to each performance obligation on a relative standalone selling price (SSP) basis. The SSP is the estimated price at which we would sell a promised product or service separately to a customer. Judgment is required to determine the SSP for each distinct performance obligation. We establish SSP for both our subscription services and professional services elements primarily by considering the actual sales prices of the element when sold on a stand-alone basis or when sold together with other elements. If we are unable to rely on actual observable sales inputs, we determine SSP based on inputs such as actual sales prices when sold together with other promised subscriptions or services and other factors such as our overarching pricing objectives and strategies. Deferred Commissions We capitalize sales commission expenses and associated payroll taxes paid to internal sales personnel that are incremental to obtaining customer contracts. These costs are deferred and then amortized over the expected period of benefit, which is estimated to be five years for new customers. Commissions for existing customer renewals are deferred and amortized over twelve months. We have determined the period of benefit taking into consideration several factors including the expected subscription term and expected renewals of our customer contracts, the duration of our relationships with our customers, and the life of our technology. Amortization expense is included in Sales and marketing in the accompanying consolidated statements of comprehensive loss. Contract Assets Subscription services revenue is generally recognized ratably over the contract term beginning on the commencement date of each contract. Contract assets are included in Prepaid expenses and other current assets and Other assets in our consolidated balance sheets. The total value of our contract assets was $1.4 million and $2.8 million as of January 31, 2021 and 2020, respectively. |
Cost of Revenue | Cost of Revenue Cost of subscription revenue primarily consists of costs relating to the hosting of our cloud-based software platform, including salaries and benefits of technical operations and support personnel, data communications costs, allocated overhead and property and equipment depreciation, amortization of internal-use software and purchased intangibles and the reduction in the carrying amount of ROU assets. Cost of professional services revenue primarily consists of the costs of delivering implementation services to customers of our cloud-based software platform, including salaries and benefits of professional services personnel and fees for third-party resources used in the delivery of implementation services. |
Advertising Expense | Advertising ExpenseAdvertising costs are expensed as incurred. |
Concentrations of Credit Risk and Significant Clients and Suppliers | Concentrations of Credit Risk and Significant Clients and SuppliersOur financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, short-term investments and accounts receivable. We deposit our cash and short-term investments primarily with one financial institution and, accordingly, such deposits regularly exceed federally insured limits. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid investments with original or remaining maturities of three months or less on the purchase date to be cash equivalents. Cash and cash equivalents carrying value approximate fair value and consist primarily of bank deposits and money market funds. Restricted cash consists of letters of credit held with a financial institution related to our facility and equipment leases, and are classified as current or long-term in our consolidated balance sheets based on the maturities of the underlying letters of credit. We had no restricted cash as of January 31, 2021 and 2020. |
Short-term Investments | Short-term Investments We typically invest in high quality, investment grade securities from diverse issuers. We classify our short-term investments as available-for-sale. In general, these investments are free of trading restrictions. We carry these investments at fair value, based on quoted market prices or other readily available market information. Unrealized gains and losses, net of taxes, are included in accumulated other comprehensive income, which is reflected as a separate component of stockholders’ equity in our consolidated balance sheets. Gains and losses are recognized when realized in our consolidated statements of comprehensive loss. When we have determined that an other-than-temporary decline in fair value has occurred, the amount of the decline that is related to a credit loss is recognized in income. Gains and losses are determined using the specific identification method. We review our debt securities classified as short-term investments on a regular basis to evaluate whether or not any security has experienced an other-than-temporary decline in fair value. We consider factors such as the length of time and extent to which the market value has been less than the cost, the financial condition and near-term prospects of the issuer and our intent to sell, or whether it is more likely than not it will be required to sell the investment before recovery of the investment’s amortized cost basis. If we believe that an other-than-temporary decline exists in one of these securities, we will write down these investments to fair value. The portion of the write-down related to credit loss would be recorded to interest and other income (expense), net in our consolidated statements of comprehensive loss. Any portion not related to credit loss would be recorded to accumulated other comprehensive income, which is reflected as a separate component of stockholders' equity in our consolidated balance sheets. |
Accounts Receivable | Accounts ReceivableOur accounts receivable consists of client obligations due under normal trade terms, and are reported at the principal amount outstanding, net of the allowance for credit losses. We maintain an allowance for credit losses that is based upon historical loss patterns, the number of days that billings are past due, and an evaluation of the potential risk of loss related to problem accounts. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment are stated at cost. Depreciation is calculated on a straight-line basis over the estimated useful lives of the related assets, generally three |
Business Combinations | Business Combinations When we acquire a business, management allocates the purchase price to the net tangible and identifiable intangible assets acquired. 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 assets acquired and liabilities assumed, especially with respect to 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, and the cost savings expected to be derived from acquiring an asset. These estimates are inherently uncertain and unpredictable. |
Goodwill | Goodwill. Goodwill represents the excess purchase consideration of an acquired business over the fair value of the net tangible and identifiable intangible assets. Goodwill is evaluated for impairment annually on December 1, and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. Triggering events that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate or a significant decrease in expected cash flows. An impairment loss is recognized to the extent that the carrying amount exceeds the reporting unit’s fair value, not to exceed the carrying amount of goodwill. We have the option to first assess qualitative factors to determine whether events or circumstances indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount and determine whether further action is needed. If, after assessing the totality of events or circumstances, we determine it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the quantitative impairment test is unnecessary. |
Acquired Intangible Assets | Acquired Intangible Assets . Acquired intangible assets consist of developed technology, customer relationships, and a trade name, resulting from Zuora’s acquisitions. Acquired intangible assets are recorded at fair value on the date of acquisition and amortized over their estimated useful lives on a straight-line basis. |
Internal-Use Software and Web Site Development Costs | Internal-Use Software and Web Site Development Costs. We capitalize costs related to developing our suite of software solutions and our website when it is probable the expenditures will result in significant new functionality. Costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. Capitalized costs are recorded as part of property and equipment, net in our consolidated balance sheets. Maintenance and training costs are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life, which is generally three years. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets. The carrying amounts of long-lived assets, including property and equipment, capitalized internal-use software, acquired intangible assets, deferred commissions, and ROU assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable or that the useful life is shorter than originally estimated. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to future undiscounted net cash flows the asset is expected to generate over its remaining life. If the asset is determined to be impaired, the amount of any impairment recognized is measured as the difference between the carrying value and the fair value of the impaired asset. If the useful life is shorter than originally estimated, we amortize the remaining carrying value over the new shorter useful life. |
Income Taxes | Income Taxes We use the asset-and-liability method of accounting for income taxes. Under this method, we recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, as well as for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. We record a valuation allowance to reduce our deferred tax assets to the net amount that we believe is more likely than not to be realized. In assessing the need for a valuation allowance, we have considered our historical levels of income, expectations of future taxable income and ongoing tax planning strategies. Because of the uncertainty of the realization of the deferred tax assets in the U.S., we have recorded a full valuation allowance against our deferred tax assets. Realization of our deferred tax assets is dependent primarily upon future U.S. taxable income. We recognize and measure tax benefits from uncertain tax positions using a two-step approach. The first step is to evaluate the tax position taken or expected to be taken by determining if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained in an audit, including resolution of any related appeals or litigation processes. 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. Significant judgment is required to evaluate uncertain tax positions. Although we believe that we have adequately reserved for our uncertain tax positions, it can provide no assurance that the final tax outcome of these matters will not be materially different. We evaluate our uncertain tax position on a regular basis and evaluations are based on a number of factors, including changes in facts and circumstances, changes in tax law, correspondence with tax authorities during the course of an audit and effective settlement of audit issues. 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 and could have a material impact on our financial condition and results of operations. The provision for income taxes includes the effects of any accruals that we believe are appropriate, as well as the related net interest and penalties. |
Stock-Based Compensation | Stock-Based Compensation We measure our employee and director stock-based compensation awards, including purchase rights issued under the ESPP, based on the award's estimated fair value on the date of grant. Expense associated with these awards is recognized using the straight-line attribution method over the requisite service period for stock options, RSUs and restricted stock; and over the offering period for the purchase rights issued under the ESPP, and is reported in our consolidated statements of comprehensive loss. We estimate the fair value of our stock options, and purchase rights under the ESPP, using the Black-Scholes option-pricing model. The resulting fair value, net of estimated forfeitures, is recognized on a straight-line basis over the period during which an employee is required to provide service in exchange for the award. Stock options generally vest over four years and have a contractual term of ten years. ESPP purchase rights vest over the two We estimate the fair value of our restricted stock and RSU grants based on the grant date fair value of our common stock. The resulting fair value, net of estimated forfeitures, is recognized on a straight-line basis over the period during which an employee is required to provide service in exchange for the award, which is generally four years. Estimated forfeitures are based upon our historical experience and we revise our estimates, if necessary, in subsequent periods if actual forfeitures differ from initial estimates. Determining the grant date fair value of options, restricted stock, and RSUs requires management to make assumptions and judgments. These estimates involve inherent uncertainties and if different assumptions had been used, stock-based compensation expense could have been materially different from the amounts recorded. The assumptions and estimates for valuing stock options are as follows: • Fair value per share of Company’s common stock. Prior to the IPO, because there was no public market for Zuora’s common stock, our Board of Directors, with the assistance of a third-party valuation specialist, determined the common stock fair value at the time of the grant of stock options by considering a number of objective and subjective factors, including our actual operating and financial performance, market conditions and performance of comparable publicly traded companies, developments and milestones in the company, the likelihood of achieving a liquidity event, and transactions involving Zuora’s common stock, among other factors. After the IPO, we used the publicly quoted price of our common stock as reported on the New York Stock Exchange as the fair value of our common stock. • Expected volatility. We determine the expected volatility based on historical average volatilities of similar publicly traded companies corresponding to the expected term of the awards. • Expected term. We determine the expected term of awards which contain only service conditions using the simplified approach, in which the expected term of an award is presumed to be the mid-point between the vesting date and the expiration date of the award, as we do not have sufficient historical data relating to stock-option exercises. • Risk-free interest rate. The risk-free interest rate is based on the U.S. Treasury yield curve in effect during the period the options were granted corresponding to the expected term of the awards. • Estimated dividend yield. The estimated dividend yield is zero, as we do not currently intend to declare dividends in the foreseeable future. |
Net Loss per Share | Net Loss per ShareBasic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Options subject to early exercise that are exercised prior to vesting are excluded from the computation of weighted-average number of shares of common stock outstanding until such shares have vested. Diluted net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period increased by giving effect to all potentially dilutive securities to the extent they are dilutive. |
Leases | Leases On February 1, 2019, we adopted FASB ASU No. 2016-02, Leases (Topic 842), on a modified retrospective basis. Financial information related to periods prior to adoption are as originally reported under Topic 840, Leases . We determine if a contract is a lease or contains a lease at the inception of the contract and reassess that conclusion if the contract is modified. All leases are assessed for classification as an operating lease or a finance lease. Operating lease right-of-use (ROU) assets are presented separately in our consolidated balance sheet. Operating lease liabilities are also presented separately as current and non-current liabilities in our consolidated balance sheet. We do not have any finance lease ROU assets or liabilities. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. We do not obtain and control our right to use the identified asset until the lease commencement date. Our lease liabilities are recognized at the applicable lease commencement date based on the present value of the lease payments required to be paid over the lease term. When the rate implicit in the lease is not readily determinable, we use the incremental borrowing rate to discount the lease payments to present value. The estimated incremental borrowing rate is derived from information available at the lease commencement date and factors in a hypothetical interest rate on a collateralized basis with similar terms, payments and economic environments. Our ROU assets are also recognized at the applicable lease commencement date. The ROU asset equals the carrying amount of the related lease liability, adjusted for any lease payments made prior to lease commencement, minus any lease incentives received, and any direct costs incurred by the lessee. Any variable lease payments are expensed as incurred and do not factor into the measurement of the applicable ROU asset or lease liability. The term of our leases equals the non-cancellable period of the lease, including any rent-free periods provided by the lessor, and also includes options to renew or extend the lease (including by not terminating the lease) that we are reasonably certain to exercise. We establish the term of each lease at lease commencement and reassess that term in subsequent periods when one of the triggering events outlined in Topic 842 occurs. Operating lease cost for lease payments is recognized on a straight-line basis over the lease term. Our lease contracts often include lease and non-lease components. We have elected the practical expedient offered by the standard to not separate lease from non-lease components for our facilities leases and account for them as a single lease component. We have elected not to recognize ROU assets and lease liabilities for leases with a term of twelve months or less. Lease cost for these short-term leases is recognized on a straight-line basis over the lease term. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements—Adopted in Fiscal 2021 In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments , and subsequently issued amendments to the initial guidance including ASU 2018-19, ASU 2019-04, ASU 2019-05, and ASU 2019-11 (collectively, Topic 326). Together, this guidance introduced a new impairment model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses (CECL). The new model uses a forward-looking expected loss method rather than the incurred loss model for recognizing credit losses. Additionally, any expected credit losses are to be reflected as allowances rather than reductions in the amortized cost of available-for-sale debt securities. We adopted Topic 326 beginning February 1, 2020 and the adoption of the standard did not have a material impact on our consolidated financial statements. However, the adoption resulted in modifying our policies for accounts receivable and available-for-sale securities as follows: Accounts Receivable: Trade accounts receivable are recorded at the invoiced amount. Prior to our adoption of Topic 326, the accounts receivable balance was reduced by an allowance for doubtful accounts that was determined based on our assessment of the collectability of customer accounts. Under Topic 326, we measure expected credit losses of accounts receivable on a collective (pool) basis, aggregating accounts receivable that have account balances above or below a certain threshold. For receivable balances below the threshold, we apply a credit-loss percentage that is based on our historical credit losses. For receivable balances above the threshold, we perform an analysis on the related customers and reserve the full receivable balance for any customer accounts where collectability may be at risk. The COVID-19 pandemic and recent economic downturn also prompted us to include additional reserves for customers in industries that could be more heavily impacted by these events. We will reassess the impact of these events and any other events that may arise in the future in developing our estimates for expected credit losses, and will make any necessary adjustments to the related reserve balance. The allowance for credit losses balance was $4.5 million as of January 31, 2021, and the allowance for doubtful accounts balance was $2.9 million as of January 31, 2020. Available-for-Sale Securities: Available-for-sale securities are reported at fair value, with unrealized gains and losses and the related tax impact included as a separate component of stockholders’ equity and in comprehensive loss. Accrued interest of $0.2 million as of January 31, 2021 is excluded from both the fair value and the amortized cost of our available-for-sale securities and is recorded in prepaid expenses and other current assets in our consolidated balance sheet. We elected not to record an allowance for credit losses for accrued interest on available-for-sale securities and will reverse the accrued interest against interest income in the period in which it is determined that the accrued interest is uncollectible. Prior to fiscal 2021, we followed the guidance in ASC 320 Investments-Debt and Equity Securities in determining whether unrealized losses were other than temporary. Under Topic 326, we now consider whether unrealized losses have resulted from a credit loss or other factors. We had no significant unrealized losses on our available-for-sale securities as of January 31, 2021 and as of January 31, 2020, and do not expect credit losses on our current investments in future periods. Therefore, we concluded that an allowance for credit losses was unnecessary as of the February 1, 2020 adoption date or as of January 31, 2021. We had no significant realized losses on available-for-sale securities during the fiscal year ended January 31, 2021. We use the specific identification method to determine the cost basis of investments sold. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Allowance for Credit Losses | The allowance for credit losses consists of the following activity (in thousands): Fiscal Year Ended January 31, 2021 2020 Allowance for credit losses, beginning balance $ 2,943 $ 2,522 Additions: Charged to revenue 3,686 3,887 Charged to deferred revenue 2,666 2,092 Deductions: Write-offs to revenue (2,865) (4,634) Write-offs to deferred revenue (1,908) (924) Allowance for credit losses, ending balance $ 4,522 $ 2,943 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost, Unrealized Gains and Losses, and Estimated Fair Value of Short-term Investments | The amortized costs, unrealized gains and losses and estimated fair values of our short-term investments as of January 31, 2021 were as follows (in thousands): As of January 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government securities $ 18,007 $ 28 $ — $ 18,035 Corporate bonds 25,888 8 (3) 25,893 Commercial paper 48,556 — — 48,556 Total short-term investments $ 92,451 $ 36 $ (3) $ 92,484 The amortized costs, unrealized gains and losses and estimated fair values of our short-term investments as of January 31, 2020 were as follows (in thousands): As of January 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government securities $ 34,053 $ 41 $ — $ 34,094 Corporate bonds 45,601 81 — 45,682 Commercial paper 37,886 — — 37,886 Total short-term investments $ 117,540 $ 122 $ — $ 117,662 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value Hierarchy for Financial Assets Measured on a Recurring Basis | The following tables summarize our fair value hierarchy for our financial assets measured at fair value on a recurring basis (in thousands): As of January 31, 2021 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 85,664 $ — $ — $ 85,664 Short-term investments: U.S. government securities $ — $ 18,035 $ — $ 18,035 Corporate bonds — 25,893 — 25,893 Commercial paper — 48,556 — 48,556 Total short-term investments $ — $ 92,484 $ — $ 92,484 As of January 31, 2020 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 37,906 $ — $ — $ 37,906 Short-term investments: U.S. government securities $ — $ 34,094 $ — $ 34,094 Corporate bonds — 45,682 — 45,682 Commercial paper — 37,886 — 37,886 Total short-term investments $ — $ 117,662 $ — $ 117,662 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): As of January 31, 2021 2020 Prepaid software subscriptions $ 5,087 $ 4,036 Prepaid insurance 2,317 1,630 Prepaid hosting costs 1,847 1,611 Contract assets 1,381 2,476 Taxes 477 729 Insurance recovery receivable 344 1,442 Other 4,121 4,463 $ 15,574 $ 16,387 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): As of January 31, 2021 2020 Software $ 19,711 $ 15,329 Leasehold improvements 18,978 16,865 Servers 14,179 14,596 Computer equipment 12,824 11,249 Furniture and fixtures 5,228 4,987 Vehicles 105 108 71,025 63,134 Less: accumulated depreciation and amortization (37,656) (29,645) Total $ 33,369 $ 33,489 The following table summarizes the capitalized internal-use software costs included within the Software line item in the table above (in thousands): Fiscal Year Ended January 31, 2021 2020 2019 Internal-use software costs capitalized during the period $ 4,235 $ 4,552 $ 2,280 January 31, 2021 January 31, 2020 Total capitalized internal-use software, net of accumulated amortization $ 8,704 $ 6,276 The following table summarizes total depreciation and amortization expense related to property and equipment, including amortization of internal-use software, included in Operating expenses and Cost of subscription revenue in the accompanying consolidated statements of comprehensive loss (in thousands): Fiscal Year Ended January 31, 2021 2020 2019 Total depreciation and amortization expense $ 10,571 $ 9,528 $ 6,542 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Purchased Intangible Assets | The following table summarizes the purchased intangible asset balances (in thousands): As of January 31, 2021 Gross Accumulated Net Carrying Developed technology $ 7,697 $ (6,243) $ 1,454 Customer relationships 4,287 (2,246) 2,041 Trade name 909 (476) 433 Total $ 12,893 $ (8,965) $ 3,928 As of January 31, 2020 Gross Accumulated Net Carrying Developed technology $ 7,697 $ (5,152) $ 2,545 Customer relationships 4,287 (1,775) 2,512 Trade name 909 (346) 563 Total $ 12,893 $ (7,273) $ 5,620 |
Schedule of Expected Future Amortization Expense for Intangible Assets | The expected future amortization expense for intangible assets as of January 31, 2021 is as follows (in thousands): Fiscal 2022 $ 1,692 Fiscal 2023 964 Fiscal 2024 601 Fiscal 2025 514 Fiscal 2026 157 $ 3,928 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): As of January 31, 2021 2020 Accrued taxes $ 4,377 $ 4,803 Accrued hosting and third-party licenses 3,073 1,846 Accrued outside services and consulting 2,380 2,800 Accrued property and equipment 21 3,442 Other accrued expenses 4,699 4,840 Total $ 14,550 $ 17,731 |
Deferred Revenue and Performa_2
Deferred Revenue and Performance Obligations (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue Recognized that was Previously Included In Deferred Revenue | The following table summarizes revenue recognized during the period that was included in the deferred revenue balance at the beginning of each respective period (in thousands): Fiscal Year Ended January 31, 2021 2020 2019 Revenue recognized from deferred revenue $ 107,091 $ 79,057 $ 53,861 |
Geographical Information (Table
Geographical Information (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue by Geographical Location Based on Customer Address at Time of Sale | Revenue by geographical location, based on the customer’s address at the time of sale, was as follows (in thousands): Fiscal Year Ended January 31, 2021 2020 2019 United States $ 200,273 $ 190,208 $ 168,221 Others 105,147 85,849 66,768 Total $ 305,420 $ 276,057 $ 234,989 Percentage of revenue by geographic area: United States 66 % 69 % 72 % Other 34 % 31 % 28 % |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Leases [Abstract] | |
Schedule of Components of Leases and Lease Costs | The components of leases and lease costs were as follows (in thousands): January 31, 2021 2021 2020 Operating lease right-of-use assets $ 47,085 $ 54,286 Operating lease liabilities, current portion 9,630 5,755 Operating lease liabilities, net of current portion 53,590 62,307 Total operating lease liabilities $ 63,220 $ 68,062 Fiscal Year Ended January 31, 2021 2020 Operating lease cost 1 $ 11,933 $ 11,737 (1) Includes costs related to our short-term operating leases as follows (in thousands): Fiscal Year Ended January 31, 2021 2020 Short-term operating lease cost $ 193 $ 706 |
Schedule of Maturities of Operating Lease Liabilities | The future maturities of operating lease liabilities for each fiscal year were as follows (in thousands): January 31, 2022 $ 12,374 2023 11,797 2024 9,569 2025 6,386 2026 6,242 Thereafter 29,897 Total lease payments 76,265 Less imputed interest (13,045) Present value of lease liabilities $ 63,220 |
Schedule of Supplemental Operating Lease Information | Other supplemental information related to our long-term operating leases includes the following (dollars in thousands): January 31, 2021 2021 2020 Weighted-average remaining operating lease term (years) 7.8 8.3 Weighted-average operating lease discount rate 4.7 % 4.7 % Fiscal Year Ended January 31, 2021 2020 Supplemental Cash Flow Information Cash paid (received) for amounts included in the measurement of lease liabilities: Cash paid for operating leases $ 9,693 $ 9,544 Cash received on operating lease incentives — (10,033) Operating cash flows resulting from operating leases $ 9,693 $ (489) New right-of-use assets obtained in exchange for lease liabilities: Operating leases obtained $ 1,064 $ 63,106 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Net Loss Before Provision for Income Taxes | Net loss before provision for income taxes consisted of the following (in thousands): Fiscal Year Ended January 31, 2021 2020 2019 Domestic $ (77,140) $ (84,988) $ (79,804) Foreign 5,839 2,035 8,970 Loss before income taxes $ (71,301) $ (82,953) $ (70,834) |
Schedule of Components of Income Tax Provision | The components of our income tax provision are as follows (in thousands): Fiscal Year Ended January 31, 2021 2020 2019 Current: Federal $ — $ — $ — State 46 72 81 International 1,480 481 1,406 $ 1,526 $ 553 $ 1,487 Deferred: Federal $ — $ (29) $ — State — — — International 347 (83) 420 Income tax provision $ 1,873 $ 441 $ 1,907 |
Schedule of Deferred Tax Assets and Liabilities | Our deferred income tax assets and liabilities consisted of the following (in thousands): As of January 31, 2021 2020 Deferred tax assets: Net operating loss carryforwards $ 108,390 $ 94,805 Tax credit carryforwards 9,849 8,525 Allowances and other 12,727 12,095 Depreciation and amortization 1,417 906 Operating lease liability 15,627 16,358 Total deferred tax assets $ 148,010 $ 132,689 Deferred tax liabilities: Deferred commissions $ (9,002) $ (7,707) Intangibles (3,057) (3,004) Operating lease right-of-use asset (11,718) (12,639) Total deferred tax liabilities (23,777) (23,350) Valuation allowance (126,149) (110,908) Net deferred tax liabilities $ (1,916) $ (1,569) |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the U.S. federal statutory tax rate to our provision for income tax is as follows (dollars in thousands): Fiscal Year Ended January 31, 2021 2020 2019 Amount Amount Amount Federal income tax benefit at statutory rates $ (14,973) $ (17,420) $ (14,875) State income taxes, net of effect of federal (2,072) (3,859) (3,337) Permanent differences 718 1,174 1,242 Federal and state R&D credits (1,325) (1,235) (1,029) Impact from international operations 600 (31) 1,340 Stock-based compensation and other 3,685 (3,427) (476) Change in valuation allowance 15,240 25,239 19,042 Income tax provision $ 1,873 $ 441 $ 1,907 |
Schedule of Uncertain Tax Position | A reconciliation of the beginning and ending amounts of uncertain tax position is as follows (in thousands): Fiscal Year Ended January 31, 2021 2020 2019 Gross amount of unrecognized tax benefits as of the beginning of the period $ 8,070 $ 6,588 $ 5,918 Increase for tax positions related to prior years — — 8 Decrease for tax positions related to prior years (5) (18) (366) Increase for tax positions related to the current year 1,320 1,500 1,028 Gross amount of unrecognized tax benefits as of the end of the period $ 9,385 $ 8,070 $ 6,588 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Equity [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Income | Components of accumulated other comprehensive income were as follows (in thousands): Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Available-for-Sale Securities Total Balance, January 31, 2020 $ 95 $ 93 $ 188 Foreign currency translation adjustment 696 — 696 Unrealized gain on available-for-sale securities, net of tax — (88) (88) Balance, January 31, 2021 $ 791 $ 5 $ 796 |
Employee Stock Plans (Tables)
Employee Stock Plans (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following table summarizes stock option activity and related information (in thousands except exercise price and contractual term): Shares Weighted Average Aggregate Balance as of January 31, 2020 13,701 $ 7.64 6.9 $ 107,186 Granted 2,462 11.72 Exercised (2,725) 4.33 Forfeited (1,626) 12.91 Balance as of January 31, 2021 11,812 8.54 6.6 80,212 Exercisable as of January 31, 2021 7,750 9.50 5.5 73,656 Vested and expected to vest as of January 31, 2021 11,340 $ 8.35 6.5 $ 79,107 |
Schedule of Stock Option Grant Date Fair Value and Intrinsic Value of Options Exercised | Fiscal Year Ended January 31, 2021 2020 2019 Weighted-average grant date fair value per share of options granted during each respective period $ 4.69 $ 6.92 $ 6.81 Aggregate intrinsic value of options exercised during each respective period $ 22,677 $ 39,652 $ 42,912 |
Schedule of Valuation Assumptions for Estimated Fair Value of Stock Options | We used the Black-Scholes option-pricing model to estimate the fair value of our stock options granted with the following assumptions: Fiscal Year Ended January 31, 2021 2020 2019 Expected volatility 41.4% - 42.4% 35.0% - 39.0% 32.4% - 40.9% Expected term (in years) 6.0 - 6.1 5.6 - 6.5 5.1 - 6.4 Risk-free interest rate 0.4% - 0.6% 1.4% - 2.5% 2.6% - 3.0% Expected dividend yield — — — |
Schedule of RSU and Restricted Stock Award Activity | The following table summarizes RSU and restricted stock award activity and related information (in thousands except grant date fair value): Number of RSUs and Restricted Stock Awards Weighted-Average Grant Date Fair Value Balance as of January 31, 2020 5,029 $ 18.09 Granted 7,979 11.55 Vested (2,932) 14.63 Forfeited (1,798) 15.67 Balance as of January 31, 2021 8,278 $ 13.54 |
Schedule of Valuation Assumptions for Estimated Fair Value of Employee Stock Purchase Plan | We estimated the fair value of ESPP purchase rights using a Black-Scholes option pricing model with the following assumptions: Fiscal Year Ended January 31, 2021 2020 2019 Expected volatility 43.6% - 69.1% 35.2% - 42.6% 24.6% - 42.4% Expected term (in years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.2 Risk-free interest rate 0.1% - 0.2% 1.5% - 2.2% 2.0% - 2.8% Expected dividend yield — — — |
Schedule of Stock-Based Compensation Expense | Stock-based compensation expense was recorded in the following cost and expense categories in the accompanying consolidated statements of comprehensive loss (in thousands): As of January 31, 2021 2020 2019 Cost of subscription revenue $ 4,849 $ 2,772 $ 1,967 Cost of professional services revenue 9,952 7,265 5,900 Research and development 19,562 17,568 6,345 Sales and marketing 15,839 11,129 7,384 General and administrative 9,081 6,312 3,761 Total stock-based compensation expense $ 59,283 $ 45,046 $ 25,357 |
Schedule of Unrecognized Compensation Costs Related to Unvested Equity Awards | As of January 31, 2021, unrecognized compensation costs related to unvested equity awards and the weighted-average remaining period over which those costs are expected to be realized were as follows (dollars in thousands): Stock Options RSUs ESPP Unrecognized compensation costs $ 20,239 $ 92,731 $ 8,666 Weighted-average remaining recognition period 2.7 years 3.1 years 1.1 years |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Net Loss Per Share | The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data): Fiscal Year Ended January 31, 2021 2020 2019 Numerator: Net loss $ (73,174) $ (83,394) $ (72,741) Denominator: Weighted-average common shares outstanding, basic and diluted 117,598 111,122 91,267 Net loss per share, basic and diluted $ (0.62) $ (0.75) $ (0.80) |
Schedule of Potentially Dilutive Securities Not Included in the Diluted Per Share Calculations | Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows (in thousands): As of January 31, 2021 2020 2019 Issued and outstanding stock options 11,812 13,701 14,784 Unvested RSUs and restricted stock issued and outstanding 8,278 5,029 3,078 Shares committed under ESPP 139 116 141 Total 20,229 18,846 18,003 |
Overview and Basis of Present_2
Overview and Basis of Presentation (Details) $ / shares in Units, $ in Thousands | Mar. 31, 2018shares | Apr. 30, 2018USD ($)$ / sharesshares | Jan. 31, 2021USD ($)segment | Jan. 31, 2020USD ($) | Jan. 31, 2019USD ($) |
Overview and Basis of Presentation [Line Items] | |||||
Aggregate proceeds received, net | $ | $ 0 | $ 0 | $ 164,703 | ||
Common stock reclassified as Class B common stock (in shares) | 30,500,000 | ||||
Number of operating segments | segment | 1 | ||||
Class B common stock | |||||
Overview and Basis of Presentation [Line Items] | |||||
Common stock issued upon conversion of convertible preferred stock (in shares) | 62,000,000 | ||||
Number of common shares issued for each share of convertible preferred stock (in shares) | 1 | ||||
IPO | |||||
Overview and Basis of Presentation [Line Items] | |||||
Shares issued and sold (in shares) | 12,700,000 | ||||
Public offering price (in dollars per share) | $ / shares | $ 14 | ||||
Aggregate proceeds received, net | $ | $ 159,700 | ||||
Over-Allotment Option | |||||
Overview and Basis of Presentation [Line Items] | |||||
Shares issued and sold (in shares) | 1,700,000 | ||||
Public offering price (in dollars per share) | $ / shares | $ 14 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Recent Accounting Pronouncements - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Accounting Policies [Line Items] | |||
Total revenue | $ 305,420,000 | $ 276,057,000 | $ 234,989,000 |
Incremental commission costs to obtain contract, amortization period (in years) | 5 years | ||
Contract assets | $ 1,400,000 | 2,800,000 | |
Restricted cash | 0 | 0 | |
Goodwill impairment charges | 0 | 0 | 0 |
Impairment of long-lived assets | $ 0 | 0 | 0 |
ESPP offering period (in years) | 2 years | ||
Allowance for credit losses | $ 4,522,000 | 2,943,000 | |
Accrued interest | 200,000 | ||
Subscription | |||
Accounting Policies [Line Items] | |||
Total revenue | 242,340,000 | 206,555,000 | 164,805,000 |
Professional services | |||
Accounting Policies [Line Items] | |||
Total revenue | $ 63,080,000 | $ 69,502,000 | $ 70,184,000 |
Minimum | |||
Accounting Policies [Line Items] | |||
Subscription agreements term (in years) | 1 year | ||
Professional services projects term to completion (in months) | 3 months | ||
Property and equipment estimated useful life (in years) | 3 years | ||
Maximum | |||
Accounting Policies [Line Items] | |||
Subscription agreements term (in years) | 3 years | ||
Professional services projects term to completion (in months) | 12 months | ||
Property and equipment estimated useful life (in years) | 5 years | ||
Internal-use software | |||
Accounting Policies [Line Items] | |||
Property and equipment estimated useful life (in years) | 3 years | ||
Stock Options | |||
Accounting Policies [Line Items] | |||
Vesting period (in years) | 4 years | ||
Contractual terms (in years) | 10 years | ||
Expected dividend yield (percent) | 0.00% | 0.00% | 0.00% |
RSUs and Restricted Stock Awards | |||
Accounting Policies [Line Items] | |||
Service period for equity award (in years) | 4 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies and Recent Accounting Pronouncements - Accounts Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Allowance for Credit Losses | ||
Allowance for credit losses, beginning balance | $ 2,943 | $ 2,522 |
Charged to revenue | 3,686 | 3,887 |
Charged to deferred revenue | 2,666 | 2,092 |
Write-offs to revenue | (2,865) | (4,634) |
Write-offs to deferred revenue | (1,908) | (924) |
Allowance for credit losses, ending balance | $ 4,522 | $ 2,943 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Short-term investments, Amortized Cost | $ 92,451 | $ 117,540 |
Gross Unrealized Gains | 36 | 122 |
Gross Unrealized Losses | (3) | 0 |
Short-term investments, Fair Value | 92,484 | 117,662 |
U.S. government securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Short-term investments, Amortized Cost | 18,007 | 34,053 |
Gross Unrealized Gains | 28 | 41 |
Gross Unrealized Losses | 0 | 0 |
Short-term investments, Fair Value | 18,035 | 34,094 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Short-term investments, Amortized Cost | 25,888 | 45,601 |
Gross Unrealized Gains | 8 | 81 |
Gross Unrealized Losses | (3) | 0 |
Short-term investments, Fair Value | 25,893 | 45,682 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Short-term investments, Amortized Cost | 48,556 | 37,886 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Short-term investments, Fair Value | $ 48,556 | $ 37,886 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Assets Measured on Recurring Basis | ||
Short-term investments | $ 92,484 | $ 117,662 |
U.S. government securities | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 18,035 | 34,094 |
Corporate bonds | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 25,893 | 45,682 |
Commercial paper | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 48,556 | 37,886 |
Recurring | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 92,484 | 117,662 |
Recurring | Money market funds | ||
Assets Measured on Recurring Basis | ||
Cash equivalents | 85,664 | 37,906 |
Recurring | U.S. government securities | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 18,035 | 34,094 |
Recurring | Corporate bonds | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 25,893 | 45,682 |
Recurring | Commercial paper | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 48,556 | 37,886 |
Recurring | Level 1 | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 0 | 0 |
Recurring | Level 1 | Money market funds | ||
Assets Measured on Recurring Basis | ||
Cash equivalents | 85,664 | 37,906 |
Recurring | Level 1 | U.S. government securities | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 0 | 0 |
Recurring | Level 1 | Corporate bonds | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 0 | 0 |
Recurring | Level 1 | Commercial paper | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 0 | 0 |
Recurring | Level 2 | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 92,484 | 117,662 |
Recurring | Level 2 | Money market funds | ||
Assets Measured on Recurring Basis | ||
Cash equivalents | 0 | 0 |
Recurring | Level 2 | U.S. government securities | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 18,035 | 34,094 |
Recurring | Level 2 | Corporate bonds | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 25,893 | 45,682 |
Recurring | Level 2 | Commercial paper | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 48,556 | 37,886 |
Recurring | Level 3 | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 0 | 0 |
Recurring | Level 3 | Money market funds | ||
Assets Measured on Recurring Basis | ||
Cash equivalents | 0 | 0 |
Recurring | Level 3 | U.S. government securities | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 0 | 0 |
Recurring | Level 3 | Corporate bonds | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 0 | 0 |
Recurring | Level 3 | Commercial paper | ||
Assets Measured on Recurring Basis | ||
Short-term investments | $ 0 | $ 0 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid software subscriptions | $ 5,087 | $ 4,036 |
Prepaid insurance | 2,317 | 1,630 |
Prepaid hosting costs | 1,847 | 1,611 |
Contract assets | 1,381 | 2,476 |
Taxes | 477 | 729 |
Insurance recovery receivable | 344 | 1,442 |
Other | 4,121 | 4,463 |
Total | $ 15,574 | $ 16,387 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 71,025 | $ 63,134 |
Less: accumulated depreciation and amortization | (37,656) | (29,645) |
Total | 33,369 | 33,489 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 19,711 | 15,329 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 18,978 | 16,865 |
Servers | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 14,179 | 14,596 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 12,824 | 11,249 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 5,228 | 4,987 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 105 | $ 108 |
Property and Equipment, Net - C
Property and Equipment, Net - Capitalized Internal-use Software Costs (Details) - Internal-use software - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Internal-use software costs capitalized during the period | $ 4,235 | $ 4,552 | $ 2,280 |
Total capitalized internal-use software, net of accumulated amortization | $ 8,704 | $ 6,276 |
Property and Equipment, Net - D
Property and Equipment, Net - Depreciation and Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Total depreciation and amortization expense | $ 10,571 | $ 9,528 | $ 6,542 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Intangible Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 12,893 | $ 12,893 |
Accumulated Amortization | (8,965) | (7,273) |
Net Carrying Amount | 3,928 | 5,620 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 7,697 | 7,697 |
Accumulated Amortization | (6,243) | (5,152) |
Net Carrying Amount | 1,454 | 2,545 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,287 | 4,287 |
Accumulated Amortization | (2,246) | (1,775) |
Net Carrying Amount | 2,041 | 2,512 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 909 | 909 |
Accumulated Amortization | (476) | (346) |
Net Carrying Amount | $ 433 | $ 563 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Narrative (Details) | 12 Months Ended | ||
Jan. 31, 2021USD ($)reporting_unit | Jan. 31, 2020USD ($) | Jan. 31, 2019USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense related to purchased intangible assets | $ 1,700,000 | $ 1,800,000 | $ 2,300,000 |
Changes in carrying amount of goodwill | $ 0 | $ 0 | |
Number of reporting units | reporting_unit | 1 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Expected Future Amortization Expense (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Expected Future Amortization Expense | ||
Fiscal 2022 | $ 1,692 | |
Fiscal 2023 | 964 | |
Fiscal 2024 | 601 | |
Fiscal 2025 | 514 | |
Fiscal 2026 | 157 | |
Net Carrying Amount | $ 3,928 | $ 5,620 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accrued taxes | $ 4,377 | $ 4,803 |
Accrued hosting and third-party licenses | 3,073 | 1,846 |
Accrued outside services and consulting | 2,380 | 2,800 |
Accrued property and equipment | 21 | 3,442 |
Other accrued expenses | 4,699 | 4,840 |
Total | $ 14,550 | $ 17,731 |
Debt (Details)
Debt (Details) - Silicon Valley Bank Debt Agreement | 1 Months Ended | 12 Months Ended | ||||
Jan. 31, 2021USD ($) | Oct. 31, 2018USD ($)payment | Jun. 30, 2017USD ($) | Jan. 31, 2021USD ($) | Jan. 31, 2020USD ($) | Sep. 30, 2018USD ($) | |
Revolving Loan | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility maximum borrowing capacity | $ 30,000,000 | $ 30,000,000 | $ 30,000,000 | $ 10,000,000 | ||
Extension term (in months) | 12 months | |||||
Amount drawn under credit facility | $ 0 | 0 | ||||
Term Loan | ||||||
Line of Credit Facility [Line Items] | ||||||
Number of equal monthly installment payments after interest-only period | payment | 36 | |||||
Amount drawn under credit facility | $ 6,000,000 | $ 6,000,000 | $ 10,500,000 | |||
Proceeds from amounts borrowed | $ 15,000,000 | |||||
Effective interest rate (percent) | 2.25% | 2.25% | ||||
Duration of periodic payments due after interest-only period (in months) | 36 months | |||||
Prepayment or termination fee (percent) | 1.50% | |||||
Amount due per agreement upon prepayment or termination of facility | $ 225,000 | |||||
Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Adjusted quick ratio for revolving loan and term loan per debt agreement covenant | 110.00% | 110.00% | ||||
Adjusted quick ratio following stock repurchases and acquisitions per debt agreement covenant | 125.00% | 125.00% | ||||
WSJ Prime Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable interest rate, minus (percent) | 1.00% | |||||
WSJ Prime Rate | Revolving Loan | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable interest rate, minus (percent) | 1.00% | |||||
WSJ Prime Rate | Term Loan | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable interest rate, minus (percent) | 1.00% |
Deferred Revenue and Performa_3
Deferred Revenue and Performance Obligations - Deferred Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue recognized from deferred revenue | $ 107,091 | $ 79,057 | $ 53,861 |
Deferred Revenue and Performa_4
Deferred Revenue and Performance Obligations - Performance Obligations (Details) $ in Millions | Jan. 31, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligations | $ 317.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-02-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation (percent) | 64.00% |
Revenue, remaining performance obligation, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-02-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation (percent) | 36.00% |
Revenue, remaining performance obligation, period |
Geographical Information (Detai
Geographical Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 305,420 | $ 276,057 | $ 234,989 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 200,273 | 190,208 | 168,221 |
Others | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 105,147 | $ 85,849 | $ 66,768 |
Revenue | Geographic Concentration | United States | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk (percent) | 66.00% | 69.00% | 72.00% |
Revenue | Geographic Concentration | Others | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk (percent) | 34.00% | 31.00% | 28.00% |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | Jan. 31, 2021USD ($)extension_option |
Lessee, Lease, Description [Line Items] | |
Undiscounted future payments for operating leases that have not yet commenced | $ | $ 4.1 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Number of lease extension options | extension_option | 1 |
Operating leases not yet commenced, lease term (in years) | 2 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Optional renewal term (in years) | 7 years |
Operating leases not yet commenced, lease term (in years) | 3 years |
Leases - Components of Leases a
Leases - Components of Leases and Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Operating Leases | ||
Operating lease right-of-use assets | $ 47,085 | $ 54,286 |
Operating lease liabilities, current portion | 9,630 | 5,755 |
Operating lease liabilities, net of current portion | 53,590 | 62,307 |
Total operating lease liabilities | 63,220 | 68,062 |
Lease Cost | ||
Operating lease cost | 11,933 | 11,737 |
Short-term leases | $ 193 | $ 706 |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Maturities of Operating Lease Liabilities | ||
2022 | $ 12,374 | |
2023 | 11,797 | |
2024 | 9,569 | |
2025 | 6,386 | |
2026 | 6,242 | |
Thereafter | 29,897 | |
Total lease payments | 76,265 | |
Less imputed interest | (13,045) | |
Present value of lease liabilities | $ 63,220 | $ 68,062 |
Leases - Supplemental Informati
Leases - Supplemental Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Lease Term and Discount Rate | ||
Weighted-average remaining operating lease term (years) | 7 years 9 months 18 days | 8 years 3 months 18 days |
Weighted-average operating lease discount rate (percent) | 4.70% | 4.70% |
Supplemental Cash Flow Information | ||
Cash paid for operating leases | $ 9,693 | $ 9,544 |
Cash received on operating lease incentives | 0 | (10,033) |
Operating cash flows resulting from operating leases | 9,693 | |
Operating cash flows resulting from operating leases | (489) | |
New right-of-use assets obtained in exchange for operating lease liabilities | $ 1,064 | $ 63,106 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 1 Months Ended | 2 Months Ended | ||||||||
Jul. 31, 2020lawsuit | Jun. 30, 2020lawsuit | Feb. 29, 2020lawsuit | Sep. 30, 2019lawsuit | Mar. 31, 2021lawsuit | Jun. 30, 2020lawsuit | May 31, 2020lawsuit | Jan. 31, 2021USD ($)vendor | Jan. 31, 2020USD ($) | Jan. 31, 2019USD ($) | |
Operating Lease Agreements | ||||||||||
Other Commitments [Line Items] | ||||||||||
Letters of credit outstanding | $ | $ 4.7 | $ 4.7 | $ 2.1 | |||||||
Web Hosting Services | ||||||||||
Other Commitments [Line Items] | ||||||||||
Contractual obligation | $ | $ 13.3 | |||||||||
Number of vendors related to contractual obligation | vendor | 1 | |||||||||
Putative securities class action | ||||||||||
Other Commitments [Line Items] | ||||||||||
Number of lawsuits filed | 2 | |||||||||
Number of lawsuits consolidated | 2 | |||||||||
Stockholder derivative lawsuits, CA | ||||||||||
Other Commitments [Line Items] | ||||||||||
Number of lawsuits filed | 2 | |||||||||
Number of lawsuits consolidated | 2 | |||||||||
Stockholder derivative lawsuits, DE | ||||||||||
Other Commitments [Line Items] | ||||||||||
Number of lawsuits filed | 2 | |||||||||
Number of lawsuits consolidated | 2 | |||||||||
Stockholder derivative lawsuits, DE | Subsequent event | ||||||||||
Other Commitments [Line Items] | ||||||||||
Number of lawsuits filed | 2 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | ||||
Increase in valuation allowance | $ (15,200) | $ (23,900) | ||
Deferral of employer FICA taxes, CARES Act | 3,600 | |||
Gross unrecognized tax benefits | 9,385 | 8,070 | $ 6,588 | $ 5,918 |
Unrecognized tax benefits that would impact effective tax rate in a future period | 700 | |||
Tax-related interest and penalties recognized | 100 | 100 | ||
Federal | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 426,500 | 366,400 | ||
Net operating loss carryforwards not subject to expiration | 188,400 | |||
Federal | Research and development | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credits | 8,400 | 7,400 | ||
State | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 286,200 | 269,900 | ||
State | Research and development | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credits | $ 10,500 | $ 8,900 |
Income Taxes - Net Loss Before
Income Taxes - Net Loss Before Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Net Loss Before Provision for Income Taxes | |||
Domestic | $ (77,140) | $ (84,988) | $ (79,804) |
Foreign | 5,839 | 2,035 | 8,970 |
Loss before income taxes | $ (71,301) | $ (82,953) | $ (70,834) |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Current: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 46 | 72 | 81 |
International | 1,480 | 481 | 1,406 |
Current | 1,526 | 553 | 1,487 |
Deferred: | |||
Federal | 0 | (29) | 0 |
State | 0 | 0 | 0 |
International | 347 | (83) | 420 |
Income tax provision | $ 1,873 | $ 441 | $ 1,907 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 108,390 | $ 94,805 |
Tax credit carryforwards | 9,849 | 8,525 |
Allowances and other | 12,727 | 12,095 |
Depreciation and amortization | 1,417 | 906 |
Operating lease liability | 15,627 | 16,358 |
Total deferred tax assets | 148,010 | 132,689 |
Deferred tax liabilities: | ||
Deferred commissions | (9,002) | (7,707) |
Intangibles | (3,057) | (3,004) |
Operating lease right-of-use asset | (11,718) | (12,639) |
Total deferred tax liabilities | (23,777) | (23,350) |
Valuation allowance | (126,149) | (110,908) |
Net deferred tax liabilities | $ (1,916) | $ (1,569) |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Federal income tax benefit at statutory rates | $ (14,973) | $ (17,420) | $ (14,875) |
State income taxes, net of effect of federal | (2,072) | (3,859) | (3,337) |
Permanent differences | 718 | 1,174 | 1,242 |
Federal and state R&D credits | (1,325) | (1,235) | (1,029) |
Impact from international operations | 600 | (31) | 1,340 |
Stock-based compensation and other | 3,685 | (3,427) | (476) |
Change in valuation allowance | 15,240 | 25,239 | 19,042 |
Income tax provision | $ 1,873 | $ 441 | $ 1,907 |
Income Taxes - Uncertain Tax Po
Income Taxes - Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits | |||
Gross amount of unrecognized tax benefits, beginning of period | $ 8,070 | $ 6,588 | $ 5,918 |
Increase for tax positions related to prior years | 0 | 0 | 8 |
Decrease for tax positions related to prior years | (5) | (18) | (366) |
Increase for tax positions related to the current year | 1,320 | 1,500 | 1,028 |
Gross amount of unrecognized tax benefits, end of period | $ 9,385 | $ 8,070 | $ 6,588 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021USD ($)vote$ / sharesshares | Jan. 31, 2020USD ($)$ / sharesshares | Jan. 31, 2019USD ($) | |
Class of Stock [Line Items] | |||
Preferred stock, authorized (in shares) | 10,000,000 | ||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | ||
Preferred stock, issued (in shares) | 0 | ||
Preferred stock, outstanding (in shares) | 0 | ||
Donation of common stock to charitable foundation | $ | $ 1,000 | $ 0 | $ 1,000 |
Class A common stock | |||
Class of Stock [Line Items] | |||
Number of votes for each share of stock held (in votes) | vote | 1 | ||
Common stock authorized (in shares) | 500,000,000 | 500,000,000 | |
Common stock par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |
Common stock issued (in shares) | 109,900,000 | 97,134,000 | |
Common stock outstanding (in shares) | 109,900,000 | 97,134,000 | |
Charitable donation of stock (in shares) | 73,964 | ||
Class B common stock | |||
Class of Stock [Line Items] | |||
Number of votes for each share of stock held (in votes) | vote | 10 | ||
Common stock authorized (in shares) | 500,000,000 | 500,000,000 | |
Common stock par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |
Common stock issued (in shares) | 11,004,000 | 17,348,000 | |
Common stock outstanding (in shares) | 11,004,000 | 17,348,000 |
Stockholders' Equity - Componen
Stockholders' Equity - Components of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Components of Accumulated Other Comprehensive Income | |||
Beginning balance | $ 164,659 | $ 181,814 | $ 50,638 |
Foreign currency translation adjustment | 696 | (379) | 3 |
Unrealized (loss) gain on available-for-sale securities, net of tax | (88) | 86 | 7 |
Ending balance | 171,913 | 164,659 | 181,814 |
AOCI | |||
Components of Accumulated Other Comprehensive Income | |||
Beginning balance | 188 | 481 | 471 |
Ending balance | 796 | 188 | $ 481 |
Foreign Currency Translation Adjustment | |||
Components of Accumulated Other Comprehensive Income | |||
Beginning balance | 95 | ||
Foreign currency translation adjustment | 696 | ||
Ending balance | 791 | 95 | |
Unrealized Gain (Loss) on Available-for-Sale Securities | |||
Components of Accumulated Other Comprehensive Income | |||
Beginning balance | 93 | ||
Unrealized (loss) gain on available-for-sale securities, net of tax | (88) | ||
Ending balance | $ 5 | $ 93 |
Employee Stock Plans - Narrativ
Employee Stock Plans - Narrative (Details) $ in Thousands, shares in Millions | 3 Months Ended | 12 Months Ended | ||
Jul. 31, 2020shares | Jan. 31, 2021USD ($)purchase_periodshares | Jan. 31, 2020USD ($) | Jan. 31, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
ESPP offering period (in months) | 2 years | |||
Stock-based compensation expense | $ | $ 59,283 | $ 45,046 | $ 25,357 | |
2018 ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock reserved and available for issuance (in shares) | 3.1 | |||
ESPP offering period (in months) | 24 months | |||
Number of purchase periods during offering period | purchase_period | 4 | |||
Term of purchase period (in months) | 6 months | |||
Purchase price, percentage of fair market value | 85.00% | |||
Class A common stock | 2018 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock reserved and available for issuance (in shares) | 20.4 | |||
Stock Options and RSUs | 2006 Stock Plan and 2015 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate equity awards outstanding (in shares) | 7.3 | |||
RSUs | Eligible non-executive employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 0.7 | |||
Stock-based compensation expense | $ | $ 7,600 |
Employee Stock Plans - Stock Op
Employee Stock Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Shares Subject To Outstanding Stock Options | ||
Outstanding, beginning balance (in shares) | 13,701 | |
Granted (in shares) | 2,462 | |
Exercised (in shares) | (2,725) | |
Forfeited (in shares) | (1,626) | |
Outstanding, ending balance (in shares) | 11,812 | 13,701 |
Exercisable (in shares) | 7,750 | |
Vested and expected to vest (in shares) | 11,340 | |
Weighted Average Exercise Price | ||
Weighted average exercise price, beginning balance (in dollars per share) | $ 7.64 | |
Granted (in dollars per share) | 11.72 | |
Exercised (in dollars per share) | 4.33 | |
Forfeited (in dollars per share) | 12.91 | |
Weighted average exercise price, ending balance (in dollars per share) | 8.54 | $ 7.64 |
Exercisable (in dollars per share) | 9.50 | |
Vested and expected to vest (in dollars per share) | $ 8.35 | |
Average Remaining Contractual Term (Years) | ||
Average remaining contractual term (years), outstanding | 6 years 7 months 6 days | 6 years 10 months 24 days |
Average remaining contractual term (years), exercisable | 5 years 6 months | |
Average remaining contractual term (years), vested and expected to vest | 6 years 6 months | |
Aggregate Intrinsic Value | ||
Aggregate intrinsic value, outstanding | $ 80,212 | $ 107,186 |
Aggregate intrinsic value, exercisable | 73,656 | |
Aggregate intrinsic value, vested and expected to vest | $ 79,107 |
Employee Stock Plans - Grant Da
Employee Stock Plans - Grant Date Fair Value and Intrinsic Value of Options Exercised (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Weighted-average grant date fair value per share of options granted (in dollars per share) | $ 4.69 | $ 6.92 | $ 6.81 |
Aggregate intrinsic value of options exercised during each respective period | $ 22,677 | $ 39,652 | $ 42,912 |
Employee Stock Plans - Valuatio
Employee Stock Plans - Valuation Assumptions for Estimated Fair Value of Stock Options (Details) - Stock Options | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility, minimum (percent) | 41.40% | 35.00% | 32.40% |
Expected volatility, maximum (percent) | 42.40% | 39.00% | 40.90% |
Risk-free interest rate, minimum (percent) | 0.40% | 1.40% | 2.60% |
Risk-free interest rate, maximum (percent) | 0.60% | 2.50% | 3.00% |
Expected dividend yield (percent) | 0.00% | 0.00% | 0.00% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 6 years | 5 years 7 months 6 days | 5 years 1 month 6 days |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 6 years 1 month 6 days | 6 years 6 months | 6 years 4 months 24 days |
Employee Stock Plans - RSU and
Employee Stock Plans - RSU and Restricted Stock Award Activity (Details) - RSUs and Restricted Stock Awards shares in Thousands | 12 Months Ended |
Jan. 31, 2021$ / sharesshares | |
Number of RSUs and Restricted Stock Awards | |
Beginning balance (in shares) | shares | 5,029 |
Granted (in shares) | shares | 7,979 |
Vested (in shares) | shares | (2,932) |
Forfeited (in shares) | shares | (1,798) |
Ending balance (in shares) | shares | 8,278 |
Weighted-Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 18.09 |
Granted (in dollars per share) | $ / shares | 11.55 |
Vested (in dollars per share) | $ / shares | 14.63 |
Forfeited (in dollars per share) | $ / shares | 15.67 |
Ending balance (in dollars per share) | $ / shares | $ 13.54 |
Employee Stock Plans - Valuat_2
Employee Stock Plans - Valuation Assumptions for Estimated Fair Value of ESPP (Details) - 2018 ESPP | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility, minimum (percent) | 43.60% | 35.20% | 24.60% |
Expected volatility, maximum (percent) | 69.10% | 42.60% | 42.40% |
Risk-free interest rate, minimum (percent) | 0.10% | 1.50% | 2.00% |
Risk-free interest rate, maximum (percent) | 0.20% | 2.20% | 2.80% |
Expected dividend yield (percent) | 0.00% | 0.00% | 0.00% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 months | 6 months | 6 months |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 2 years | 2 years | 2 years 2 months 12 days |
Employee Stock Plans - Stock-Ba
Employee Stock Plans - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Cost of Revenue | |||
Stock-based compensation expense | $ 59,283 | $ 45,046 | $ 25,357 |
Cost of subscription revenue | |||
Cost of Revenue | |||
Stock-based compensation expense | 4,849 | 2,772 | 1,967 |
Cost of professional services revenue | |||
Cost of Revenue | |||
Stock-based compensation expense | 9,952 | 7,265 | 5,900 |
Research and development | |||
Cost of Revenue | |||
Stock-based compensation expense | 19,562 | 17,568 | 6,345 |
Sales and marketing | |||
Cost of Revenue | |||
Stock-based compensation expense | 15,839 | 11,129 | 7,384 |
General and administrative | |||
Cost of Revenue | |||
Stock-based compensation expense | $ 9,081 | $ 6,312 | $ 3,761 |
Employee Stock Plans - Unrecogn
Employee Stock Plans - Unrecognized Compensation Costs (Details) $ in Thousands | 12 Months Ended |
Jan. 31, 2021USD ($) | |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation costs, stock options | $ 20,239 |
Weighted-average recognition period (in years) | 2 years 8 months 12 days |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation costs | $ 92,731 |
Weighted-average recognition period (in years) | 3 years 1 month 6 days |
2018 ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation costs | $ 8,666 |
Weighted-average recognition period (in years) | 1 year 1 month 6 days |
Net Loss Per Share - Basic and
Net Loss Per Share - Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Numerator: | |||
Net loss | $ (73,174) | $ (83,394) | $ (72,741) |
Denominator: | |||
Weighted-average common shares outstanding, basic and diluted (in shares) | 117,598 | 111,122 | 91,267 |
Net loss per share, basic and diluted (in dollars per share) | $ (0.62) | $ (0.75) | $ (0.80) |
Net Loss Per Share - Potentiall
Net Loss Per Share - Potentially Dilutive Securities Not Included in the Diluted Per Share Calculations (Details) - shares shares in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities not included in the diluted per share calculation | 20,229 | 18,846 | 18,003 |
Issued and outstanding stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities not included in the diluted per share calculation | 11,812 | 13,701 | 14,784 |
Unvested RSUs and restricted stock issued and outstanding | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities not included in the diluted per share calculation | 8,278 | 5,029 | 3,078 |
Shares committed under ESPP | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities not included in the diluted per share calculation | 139 | 116 | 141 |