Cover
Cover - shares | 6 Months Ended | |
Jul. 31, 2023 | Aug. 30, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-39495 | |
Entity Registrant Name | Asana, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-3912448 | |
Entity Address, Address Line One | 633 Folsom Street, Suite 100 | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94107 | |
City Area Code | 415 | |
Local Phone Number | 525-3888 | |
Title of 12(b) Security | Class A Common Stock, $0.00001 par value per share | |
Trading Symbol | ASAN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001477720 | |
Current Fiscal Year End Date | --01-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 134,188,367 | |
Common Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 85,489,359 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 31, 2023 | Jan. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 413,697 | $ 526,563 |
Marketable securities | 123,809 | 2,739 |
Accounts receivable, net | 66,330 | 82,363 |
Prepaid expenses and other current assets | 47,230 | 48,726 |
Total current assets | 651,066 | 660,391 |
Property and equipment, net | 97,938 | 94,984 |
Operating lease right-of-use assets | 185,112 | 176,189 |
Other assets | 22,291 | 23,399 |
Total assets | 956,407 | 954,963 |
Current liabilities | ||
Accounts payable | 5,188 | 7,554 |
Accrued expenses and other current liabilities | 67,472 | 83,488 |
Deferred revenue, current | 254,905 | 226,443 |
Operating lease liabilities, current | 16,246 | 14,831 |
Total current liabilities | 343,811 | 332,316 |
Term loan, net | 45,469 | 46,696 |
Deferred revenue, noncurrent | 6,230 | 7,156 |
Operating lease liabilities, noncurrent | 223,275 | 210,012 |
Other liabilities | 3,369 | 2,209 |
Total liabilities | 622,154 | 598,389 |
Commitments and contingencies (Note 7) | ||
Stockholders' equity | ||
Common stock | 2 | 2 |
Additional paid-in capital | 1,706,006 | 1,595,001 |
Accumulated other comprehensive loss | (1,317) | (873) |
Accumulated deficit | (1,370,438) | (1,237,556) |
Total stockholders’ equity | 334,253 | 356,574 |
Total liabilities and stockholders’ equity | $ 956,407 | $ 954,963 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Income Statement [Abstract] | ||||
Revenues | $ 162,455 | $ 134,896 | $ 314,866 | $ 255,542 |
Cost of revenues | 16,232 | 13,756 | 31,079 | 26,194 |
Gross profit | 146,223 | 121,140 | 283,787 | 229,348 |
Operating expenses: | ||||
Research and development | 84,371 | 75,233 | 160,687 | 140,438 |
Sales and marketing | 96,448 | 110,392 | 189,685 | 206,515 |
General and administrative | 38,787 | 46,787 | 72,043 | 89,899 |
Total operating expenses | 219,606 | 232,412 | 422,415 | 436,852 |
Loss from operations | (73,383) | (111,272) | (138,628) | (207,504) |
Interest income and other income (expense), net | 4,165 | (164) | 9,831 | (1,510) |
Interest expense | (968) | (311) | (1,935) | (668) |
Loss before provision for income taxes | (70,186) | (111,747) | (130,732) | (209,682) |
Provision for income taxes | 1,228 | 1,222 | 2,150 | 2,155 |
Net loss | $ (71,414) | $ (112,969) | $ (132,882) | $ (211,837) |
Net loss per share: | ||||
Basic (in dollars per share) | $ (0.33) | $ (0.59) | $ (0.61) | $ (1.11) |
Diluted (in dollars per share) | $ (0.33) | $ (0.59) | $ (0.61) | $ (1.11) |
Weighted-average shares used in calculating net loss per share: | ||||
Basic (in shares) | 219,004 | 191,352 | 217,730 | 190,486 |
Diluted (in shares) | 219,004 | 191,352 | 217,730 | 190,486 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (71,414) | $ (112,969) | $ (132,882) | $ (211,837) |
Other comprehensive loss: | ||||
Net unrealized losses on marketable securities | (1,469) | (84) | (1,015) | (205) |
Change in foreign currency translation adjustments | 467 | (322) | 571 | (823) |
Comprehensive loss | $ (72,416) | $ (113,375) | $ (133,326) | $ (212,865) |
CONDENSED CONSOLIDATED STATMENT
CONDENSED CONSOLIDATED STATMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance (in shares) at Jan. 31, 2022 | 188,298 | ||||
Beginning balance at Jan. 31, 2022 | $ 203,840 | $ 2 | $ 1,034,252 | $ (626) | $ (829,788) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon the exercise of options (in shares) | 1,278 | ||||
Issuance of common stock upon the exercise of options | 3,629 | 3,629 | |||
Vesting of early exercised stock options | 461 | 461 | |||
Issuance of common stock upon the vesting and settlement of restricted stock units (in shares) | 1,737 | ||||
Issuance of common stock under employee share purchase plan (in shares) | 353 | ||||
Issuance of common stock under employee share purchase plan | 9,156 | 9,156 | |||
Stock-based compensation expense | 87,900 | 87,900 | |||
Net unrealized losses on marketable securities | (205) | (205) | |||
Foreign currency translation adjustments | (823) | (823) | |||
Net loss | (211,837) | (211,837) | |||
Ending balance (in shares) at Jul. 31, 2022 | 191,666 | ||||
Ending balance at Jul. 31, 2022 | 92,121 | $ 2 | 1,135,398 | (1,654) | (1,041,625) |
Beginning balance (in shares) at Apr. 30, 2022 | 190,109 | ||||
Beginning balance at Apr. 30, 2022 | 155,973 | $ 2 | 1,085,875 | (1,248) | (928,656) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon the exercise of options (in shares) | 453 | ||||
Issuance of common stock upon the exercise of options | 1,413 | 1,413 | |||
Vesting of early exercised stock options | 184 | 184 | |||
Issuance of common stock upon the vesting and settlement of restricted stock units (in shares) | 1,104 | ||||
Stock-based compensation expense | 47,926 | 47,926 | |||
Net unrealized losses on marketable securities | (84) | (84) | |||
Foreign currency translation adjustments | (322) | (322) | |||
Net loss | (112,969) | (112,969) | |||
Ending balance (in shares) at Jul. 31, 2022 | 191,666 | ||||
Ending balance at Jul. 31, 2022 | 92,121 | $ 2 | 1,135,398 | (1,654) | (1,041,625) |
Beginning balance (in shares) at Jan. 31, 2023 | 214,293 | ||||
Beginning balance at Jan. 31, 2023 | $ 356,574 | $ 2 | 1,595,001 | (873) | (1,237,556) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon the exercise of options (in shares) | 1,371 | 1,371 | |||
Issuance of common stock upon the exercise of options | $ 3,073 | 3,073 | |||
Vesting of early exercised stock options | 106 | 106 | |||
Issuance of common stock upon the vesting and settlement of restricted stock units (in shares) | 3,484 | ||||
Issuance of common stock upon the vesting and settlement of restricted stock units | (7) | ||||
Issuance of common stock under employee share purchase plan (in shares) | 458 | ||||
Issuance of common stock under employee share purchase plan | 8,558 | 8,558 | |||
Stock-based compensation expense | 99,275 | 99,275 | |||
Net unrealized losses on marketable securities | (1,015) | (1,015) | |||
Foreign currency translation adjustments | 571 | 571 | |||
Net loss | (132,882) | (132,882) | |||
Ending balance (in shares) at Jul. 31, 2023 | 219,606 | ||||
Ending balance at Jul. 31, 2023 | 334,253 | $ 2 | 1,706,006 | (1,317) | (1,370,438) |
Beginning balance (in shares) at Apr. 30, 2023 | 216,776 | ||||
Beginning balance at Apr. 30, 2023 | 348,085 | $ 2 | 1,647,422 | (315) | (1,299,024) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon the exercise of options (in shares) | 578 | ||||
Issuance of common stock upon the exercise of options | 1,275 | 1,275 | |||
Vesting of early exercised stock options | 32 | 32 | |||
Issuance of common stock upon the vesting and settlement of restricted stock units (in shares) | 2,252 | ||||
Issuance of common stock upon the vesting and settlement of restricted stock units | (7) | ||||
Stock-based compensation expense | 57,284 | 57,284 | |||
Net unrealized losses on marketable securities | (1,469) | (1,469) | |||
Foreign currency translation adjustments | 467 | 467 | |||
Net loss | (71,414) | (71,414) | |||
Ending balance (in shares) at Jul. 31, 2023 | 219,606 | ||||
Ending balance at Jul. 31, 2023 | $ 334,253 | $ 2 | $ 1,706,006 | $ (1,317) | $ (1,370,438) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Cash flows from operating activities | ||
Net loss | $ (132,882) | $ (211,837) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Allowance for expected credit losses | 1,389 | 1,360 |
Depreciation and amortization | 6,876 | 6,303 |
Amortization of deferred contract acquisition costs | 10,303 | 6,572 |
Stock-based compensation expense | 97,703 | 87,843 |
Net amortization (accretion) of premium (discount) on marketable securities | (932) | 57 |
Non-cash lease expense | 10,044 | 7,368 |
Impairment of long-lived assets | 5,009 | 0 |
Amortization of discount on revolving credit facility and term loan issuance costs | 60 | 8 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 14,658 | 5,203 |
Prepaid expenses and other current assets | (9,057) | (27,702) |
Other assets | 1,348 | (2,023) |
Accounts payable | (3,245) | (1,469) |
Accrued expenses and other liabilities | (14,217) | 16,483 |
Deferred revenue | 27,536 | 35,949 |
Operating lease liabilities | (8,954) | (6,896) |
Net cash provided by (used in) operating activities | 5,639 | (82,781) |
Cash flows from investing activities | ||
Purchases of marketable securities | (139,294) | (72,218) |
Maturities of marketable securities | 18,141 | 55,890 |
Purchases of property and equipment | (5,966) | (1,683) |
Capitalized internal-use software costs | (2,348) | (70) |
Net cash used in investing activities | (129,467) | (18,081) |
Cash flows from financing activities | ||
Repayment of term loan | (1,875) | (1,667) |
Repurchases of common stock | 0 | (2) |
Proceeds from exercise of stock options | 3,073 | 3,647 |
Proceeds from employee stock purchase plan | 8,558 | 9,156 |
Taxes paid related to net share settlement of equity awards | (7) | 0 |
Net cash provided by financing activities | 9,749 | 11,134 |
Effect of foreign exchange rates on cash, cash equivalents, and restricted cash | 1,213 | (718) |
Net decrease in cash, cash equivalents, and restricted cash | (112,866) | (90,446) |
Cash, cash equivalents, and restricted cash | ||
Beginning of period | 526,563 | 240,403 |
End of period | 413,697 | 149,957 |
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets | ||
Cash and cash equivalents | 413,697 | 148,458 |
Restricted cash | 0 | 1,499 |
Supplemental cash flow data | ||
Cash paid for income taxes | 2,426 | 2,517 |
Supplemental non-cash investing and financing information | ||
Purchase of property and equipment in accounts payable and accrued expenses | $ 1,082 | $ 826 |
Organization
Organization | 6 Months Ended |
Jul. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Organization and Description of Business Asana, Inc. (“Asana” or the “Company”) was incorporated in the state of Delaware on December 16, 2008. Asana is a work management platform that helps organizations orchestrate work, from daily tasks to cross-functional strategic initiatives. The Company is headquartered in San Francisco, California. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jul. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) and include the accounts of the Company’s wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated on consolidation. The unaudited condensed consolidated balance sheet as of January 31, 2023 included herein was derived from the audited financial statements as of that date, but does not include all disclosures, including certain notes required by GAAP on an annual reporting basis. In management's opinion, the unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to state fairly the balance sheet, statements of comprehensive loss, and stockholders' equity (deficit), and statements of cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year or any future period. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K filed with the SEC on March 24, 2023. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Estimates and assumptions reflected in the consolidated financial statements include, but are not limited to, revenue recognition, the useful lives and carrying values of long-lived assets, the fair value of common stock for periods prior to the Company’s direct listing of its Class A common stock on the New York Stock Exchange (“NYSE”) (the “Direct Listing”), stock-based compensation expense, the period of benefit for deferred contract acquisition costs, income taxes, and the valuation of right-of-use assets. Actual results could differ from those estimates. Risks and Uncertainties Global macroeconomic events including elevated inflation, the U.S. Federal Reserve raising interest rates, bank failures, supply chain disruptions, fluctuations in currency exchange rates, the Russian invasion of Ukraine, and the residual impact of the COVID-19 pandemic have led to economic uncertainty. These macroeconomic conditions have and are likely to continue to have adverse effects on the rate of global IT spending, including the buying patterns of the Company’s customers and prospective customers. The conditions caused by the aforementioned macroeconomic events have affected and could continue to affect the rate of global IT spending and could adversely affect demand for the Company’s platform, lengthen the Company’s sales cycles, reduce the value or duration of subscriptions, negatively impact collections of accounts receivable, reduce expected spending from new customers, cause some of the Company’s paying customers to go out of business, and affect contraction or attrition rates of the Company’s customers, all of which could adversely affect the Company’s business, results of operations, and financial condition. As of the date of issuance of the financial statements, the Company is not aware of any specific event or circumstance related to the aforementioned macroeconomic events that would require it to update its estimates or judgments or adjust the carrying value of its assets or liabilities. Actual results could differ from those estimates and any such differences may be material to the condensed consolidated financial statements. Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents, and marketable securities. The Company deposits its cash and cash equivalents with financial institutions that management believes are of high credit quality, although such deposits may, at times, exceed federally insured limits. The Company has not experienced any losses on its deposits of cash and cash equivalents to date. Cash equivalents are invested in highly rated money market funds. The Company grants credit to customers in the normal course of business. For the three and six months ended July 31, 2023 and July 31, 2022, there were no individual customers that accounted for 10% or more of the Company’s revenues. No customer accounted for more than 10% of accounts receivable as of July 31, 2023 or January 31, 2023. Fair Value of Financial Instruments Fair value is defined as the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the reporting date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. Fair value is estimated by utilizing a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1—Observable inputs comprised of quoted prices for identical assets or liabilities in active markets. Level 2—Inputs other than the quoted prices in active markets that are observable either directly or indirectly. Level 3—Unobservable inputs in which there is little or no market data and that are significant to the fair value of the assets or liabilities. In determining fair value, a financial instrument’s classification within the three-tier fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. The carrying amount of certain financial instruments, including cash, accounts receivable, accounts payable, and accrued liabilities approximates their fair values due to their short-term nature. Available-for-sale Investments The Company’s marketable securities are primarily comprised of U.S. government securities, commercial paper, and corporate bonds. The Company classifies its securities as available-for-sale at the time of purchase and reevaluates such classification at each balance sheet date. The Company may sell these securities at any time for use in current operations even if they have not yet reached maturity. As a result, the Company classifies its marketable securities, including securities with stated maturities beyond twelve months, within current assets in the condensed consolidated balance sheets. Available-for-sale securities are carried at fair value with unrealized gains and losses reported in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity (deficit) until realized. Unrealized gains and losses for any marketable securities that management intends to sell or is more likely than not that management will be required to sell prior to their anticipated recovery are recorded in other income (expense), net. Impairment of Long-Lived Assets The Company evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such asset groups may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset group to future undiscounted cash flows expected to be generated by the asset group. If such assets are considered to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. The Company recorded an impairment charge of $5.0 million during the three and six months ended July 31, 2023, related to the right-of-use (“ROU”) assets and underlying property and equipment associated with its subleased office spaces further described in Note 8. Leases to the condensed consolidated financial statements. Recently Adopted Accounting Pronouncements On February 1, 2023, the Company adopted ASU No. 2021-08 , Business Combinations - Accounting for Contract Liabilities from Contracts with Customers, which requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities from acquired contracts using the revenue recognition guidance under Accounting Standards Codification Topic 606 in order to align the recognition of a contract liability with the definition of a performance obligation. |
Revenues
Revenues | 6 Months Ended |
Jul. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Deferred Revenue and Remaining Performance Obligations The Company recognized $65.6 million and $50.2 million of revenues during the three months ended July 31, 2023 and 2022, respectively, that were included in the deferred revenue balances at January 31, 2023 and 2022, respectively. The Company recognized $166.1 million and $124.2 million of revenues during the six months ended July 31, 2023 and 2022, respectively, that were included in the deferred revenue balances at January 31, 2023 and 2022, respectively. Deferred revenue that will be recognized within the next twelve months is recorded as current deferred revenue, and the remaining portion is recorded as noncurrent. As of July 31, 2023, the Company's remaining performance obligations from subscription contracts was $333.4 million, of which the Company expects to recognize approximately 86% as revenues over the next 12 months and the remainder thereafter. Deferred Contract Acquisition Costs Deferred contract acquisition costs are amortized over a period of benefit of three years. The period of benefit was estimated by considering factors such as historical customer attrition rates, the useful life of the Company’s technology, and the impact of competition in the software-as-a-service industry. The following table summarizes the activity of deferred contract acquisition costs (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2023 2022 2023 2022 Beginning balance $ 37,338 $ 25,807 $ 36,583 $ 22,771 Capitalization of contract acquisition costs 6,430 5,947 12,056 12,028 Amortization of deferred contract acquisition costs (5,432) (3,527) (10,303) (6,572) Ending balance $ 38,336 $ 28,227 $ 38,336 $ 28,227 Deferred contract acquisition costs, current $ 20,110 $ 13,724 $ 20,110 $ 13,724 Deferred contract acquisition costs, noncurrent 18,226 14,503 18,226 14,503 Total deferred contract acquisition costs $ 38,336 $ 28,227 $ 38,336 $ 28,227 Deferred contract acquisition costs, current is presented within prepaid expenses and other current assets in the condensed consolidated balance sheets. Deferred contract acquisition costs, noncurrent is presented within other assets in the condensed consolidated balance sheets. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table summarizes, for assets and liabilities measured at fair value, the respective fair value and classification by level of input within the fair value hierarchy (in thousands): July 31, 2023 Level 1 Level 2 Level 3 Total Current Assets Cash equivalents Money market funds $ 275,484 $ — $ — $ 275,484 Total cash equivalents $ 275,484 $ — $ — $ 275,484 Marketable securities U.S. government agency securities $ 106,541 $ — $ — $ 106,541 Corporate bonds — 17,268 — 17,268 Total marketable securities $ 106,541 $ 17,268 $ — $ 123,809 Total assets $ 382,025 $ 17,268 $ — $ 399,293 January 31, 2023 Level 1 Level 2 Level 3 Total Current Assets Cash equivalents Money market funds $ 289,001 $ — $ — $ 289,001 Total cash equivalents $ 289,001 $ — $ — $ 289,001 Marketable securities Corporate bonds $ — $ 2,739 $ — $ 2,739 Total marketable securities $ — $ 2,739 $ — $ 2,739 Total assets $ 289,001 $ 2,739 $ — $ 291,740 The following table summarizes the Company's investments in marketable securities on the condensed consolidated balance sheets (in thousands): July 31, 2023 Amortized Gross Gross Unrealized Losses Estimated Current Assets U.S. government agency securities $ 107,428 $ — $ (887) $ 106,541 Corporate bonds 17,401 8 (141) 17,268 Total marketable securities $ 124,829 $ 8 $ (1,028) $ 123,809 January 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Current Assets Corporate bonds $ 2,744 $ — $ (5) $ 2,739 Total marketable securities $ 2,744 $ — $ (5) $ 2,739 The following table presents the contractual maturities of the Company’s marketable securities as of July 31, 2023 (in thousands): July 31, 2023 Amortized Cost Estimated Fair Value Due within one year $ 39,428 $ 39,302 Due within one to three years 85,401 84,507 Total $ 124,829 $ 123,809 The Company periodically evaluates its investments for expected credit losses. The unrealized losses on the available-for-sale securities were primarily due to unfavorable changes in interest rates subsequent to the initial purchase of these securities. Gross unrealized losses of the Company’s available-for-sale securities that have been in a continuous unrealized loss position for twelve months or longer were immaterial as of July 31, 2023 and January 31, 2023. The Company expects to recover the full carrying value of its available-for-sale securities in an unrealized loss position as it does not intend or anticipate a need to sell these securities prior to recovering the associated unrealized losses. The Company also expects any credit losses would be immaterial based on the high-grade credit rating for each of such available-for-sale securities. As a result, the Company does not consider any portion of the unrealized losses as of July 31, 2023 or January 31, 2023 to represent credit losses. In April 2020 and November 2022, the Company entered into credit agreements (the “April 2020 Senior Secured Term Loan” and “November 2022 Senior Secured Credit Facility” as defined in Note 6. Debt ) with Silicon Valley Bank (“SVB”). The fair values of the credit facilities approximated their carrying values as of July 31, 2023 and January 31, 2023. On March 27, 2023, First Citizens BancShares, Inc. announced that it entered into an agreement to purchase assets and liabilities of SVB, inclusive of the November 2022 Senior Secured Credit Facility. |
Balance Sheet Components
Balance Sheet Components | 6 Months Ended |
Jul. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | Balance Sheet Components Property and Equipment, Net Property and equipment, net, consisted of the following (in thousands): July 31, 2023 January 31, 2023 Leasehold improvements $ 100,590 $ 98,264 Capitalized internal-use software 18,783 15,005 Furniture and fixtures 11,719 10,325 Desktop and other computer equipment 1,969 1,804 Construction in progress 19 652 Total gross property and equipment 133,080 126,050 Less: Accumulated depreciation and amortization (35,142) (31,066) Total property and equipment, net $ 97,938 $ 94,984 Depreciation and amortization expense was $3.6 million and $3.2 million for the three months ended July 31, 2023 and 2022, respectively, and $6.9 million and $6.3 million for the six months ended July 31, 2023 and 2022, respectively. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): July 31, 2023 January 31, 2023 Prepaid expenses $ 22,401 $ 25,134 Deferred contract acquisition costs, current 20,110 18,049 Other current assets 4,719 5,543 Total prepaid expenses and other current assets $ 47,230 $ 48,726 Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): July 31, 2023 January 31, 2023 Accrued payroll liabilities $ 16,558 $ 22,336 Accrued taxes for fringe benefits 10,139 8,064 Accrued sales and value-added taxes 9,938 13,347 Accrued advertising expenses 5,210 10,565 Accrued consulting expenses 3,439 4,076 Other liabilities 22,188 25,100 Total accrued expenses and other current liabilities $ 67,472 $ 83,488 |
Debt
Debt | 6 Months Ended |
Jul. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt In April 2020, the Company entered into a five-year $40.0 million term loan agreement with SVB (the “April 2020 Senior Secured Term Loan”) which provided for a senior secured term loan facility, in an aggregate principal amount of up to $40.0 million to be used for the construction of the Company’s corporate headquarters. Interest accrued and was payable monthly based on a floating rate per annum equal to the prime rate (per the Wall Street Journal) plus an applicable margin ranging from 0% to (1.0)% based on the Company’s unrestricted cash balance at the lender. The April 2020 Senior Secured Term Loan was repaid in full and terminated in November 2022. In November 2022, the Company entered into an agreement for a four-year credit facility (as amended on April 13, 2023, the “November 2022 Senior Secured Credit Facility”) with SVB, which refinanced the April 2020 Senior Secured Term Loan. The November 2022 Senior Secured Credit Facility provides for senior secured credit facilities in the aggregate principal amount of $150.0 million, including a senior secured term loan facility in an aggregate principal amount of $50.0 million and a revolving loan facility in an aggregate principal amount of up to $100.0 million, including a $30.0 million letter of credit sub-facility, maturing on November 7, 2026. On March 27, 2023, First Citizens BancShares, Inc. announced that it entered into an agreement to purchase assets and liabilities of SVB, inclusive of the November 2022 Senior Secured Credit Facility. Borrowings under the November 2022 Senior Secured Credit Facility may be designated as ABR Loans or SOFR Loans, subject to certain terms and conditions under the agreement. ABR Loans accrue interest at a rate per annum equal to the ABR plus an applicable margin of 1.25%. Term SOFR Loans accrue interest at a rate per annum equal to the applicable adjusted term SOFR rate, which is equal to the applicable term SOFR rate plus a term SOFR adjustment of 10 basis points, provided such adjusted term SOFR rate shall not be less than zero, plus an applicable margin of 2.25%. Interest accrues and is payable on a monthly basis. The November 2022 Senior Secured Credit Facility contains customary conditions to borrowing, events of default, and covenants, including covenants that restrict the Company’s ability to incur indebtedness, make or hold investments, execute certain change of control transactions, business combinations or other fundamental changes to the business, dispose of assets, make certain types of restricted payments or enter into certain related party transactions, subject to customary exceptions. In addition, the November 2022 Senior Secured Credit Facility contains financial covenants, including a consolidated adjusted quick ratio of 1.25 to 1.00, as well as a minimum cash adjusted EBITDA, each tested on a quarterly basis. Pursuant to the terms of the November 2022 Senior Secured Credit Facility, the Company may issue letters of credit which may reduce the total amount available for borrowing under the revolving credit facility. Additionally, the Company is required to pay an annual commitment fee that accrues at a rate of 0.15% per annum on the unused portion of the borrowing commitments under the revolving credit facility. The Company had an aggregate of $23.0 million of letters of credit outstanding under the revolving credit facility as of July 31, 2023, and the Company’s total available borrowing capacity under the revolving credit facility was $77.0 million as of July 31, 2023. As of July 31, 2023, $50.0 million was drawn and $48.1 million was outstanding under the November 2022 Senior Secured Credit Facility. As of July 31, 2023, the Company was in compliance with all financial covenants. In conjunction with the close of the November 2022 Senior Secured Credit Facility, the Company paid upfront issuance fees of $0.4 million. The upfront fees are amortized over the remaining term of the agreement. The Company had $0.2 million remaining of upfront issuance fees allocated to the revolving credit facility presented in the Company’s consolidated balance sheet within other assets. The net carrying amounts of the credit facilities were as follows (in thousands): July 31, 2023 January 31, 2023 Principal $ 48,125 $ 50,000 Accrued interest 272 218 Unamortized loan issuance costs (156) (179) Net carrying amount $ 48,241 $ 50,039 Credit facilities, current $ 2,772 $ 3,343 Credit facilities, noncurrent $ 45,469 $ 46,696 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Standby Letters of Credit As of July 31, 2023, the Company had several letters of credit outstanding related to its operating leases totaling $23.0 million . The letters of credit expire at various dates between 2025 and 2034. Purchase Commitments In January 2021, the Company entered into a 60-month contract with Amazon Web Services for hosting-related services. Pursuant to the terms of the contract, the Company is required to spend a minimum of $103.5 million over the term of the agreement. The commitment may be offset by up to $7.3 million in additional credits subject to the Company meeting certain conditions of the agreement, all of which have been earned as of July 31, 2023. As of July 31, 2023, the Company had purchase commitments remaining of $49.7 million under this contract . During the six months ended July 31, 2023, other than certain non-cancelable operating leases described in Note 8. Leases and the commitment for hosting-related services described above, there have been no other material changes outside the ordinary course of business to the Company's contractual obligations and commitments from those disclosed in the Annual Report. Indemnification Agreements The Company has entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against any liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of the individual. Additionally, in the ordinary course of business, the Company enters into agreements of varying scope and terms pursuant to which it agrees to indemnify customers, vendors, lessors, business partners, and other parties with respect to certain matters, including, but not limited to, losses arising out of the breach of such agreements, services to be provided by the Company, or from intellectual property infringement claims made by third parties. For the six months ended July 31, 2023 and 2022, no demands have been made upon the Company to provide indemnification under such agreements, and there are no claims that the Company is aware of that could have a material adverse effect on its financial position, results of operations, or cash flows. Contingencies From time to time in the normal course of business, the Company may be subject to various claims and other legal matters arising in the ordinary course of business. As of July 31, 2023, the Company believes that none of its current legal proceedings would have a material adverse effect on its financial position, results of operations, or cash flows. |
Leases
Leases | 6 Months Ended |
Jul. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company leases real estate facilities under non-cancelable operating leases with various expiration dates through fiscal 2034. The Company has no lease agreements that are classified as finance leases. Future minimum lease payments (net of tenant improvement receivables) under non-cancelable operating leases with initial lease terms in excess of one year included in the Company’s lease liabilities as of July 31, 2023 are as follows (in thousands): Fiscal year ending January 31, Operating Lease Payments (Net) 2024 $ 18,567 2025 38,379 2026 37,275 2027 38,075 2028 and thereafter 238,501 Total undiscounted operating lease payments $ 370,797 Less: imputed interest (131,276) Total operating lease liabilities $ 239,521 During the three and six months ended July 31, 2023, the Company executed a sublease for a portion of its corporate office space in San Francisco, California. Future minimum sublease rental income under the sublease, net of incentives, is approximately $8.8 million. The Company evaluated the associated asset group for impairment, which included the ROU assets and underlying property and equipment for the lease. The Company compared the expected future undiscounted cash flows to the carrying value and determined the respective asset group was not recoverable. The Company calculated the fair value based on the present value of the estimated cash flows from the sublease for the remaining lease term and compared the estimated fair value to its carrying value, which resulted in a $5.0 million consolidated impairment charge. The fair value of the operating lease ROU assets and associated property and equipment was estimated as of the sublease execution date using level 3 inputs based on an income approach by converting future sublease cash inflows and outflows to a single present value. Estimated cash flows were discounted at a rate commensurate with the inherent risks associated with the asset group to arrive at an estimate of fair value. The impairment charge was included in general and administrative expenses in the condensed consolidated statements of operations. As of July 31, 2023, the Company has an operating sublease for office space that has not yet commenced with undiscounted cash flows of $8.8 million. This sublease is expected to commence in the third quarter of fiscal 2024 with a lease term of five years. |
Net Loss per Share
Net Loss per Share | 6 Months Ended |
Jul. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Net Loss per Share The Company computes net loss per share using the two-class method required for multiple classes of common stock and participating securities. The rights, including the liquidation and dividend rights, of the Class A common stock and Class B common stock are substantially identical, other than voting rights. Accordingly, the Class A common stock and Class B common stock share equally in the Company’s net income and losses. The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data): Three Months Ended July 31, Six Months Ended July 31, 2023 2022 2023 2022 Numerator: Net loss $ (71,414) $ (112,969) $ (132,882) $ (211,837) Denominator: Weighted-average shares used in calculating net loss per share, basic and diluted 219,004 191,352 217,730 190,486 Net loss per share, basic and diluted $ (0.33) $ (0.59) $ (0.61) $ (1.11) The potential shares of common stock that were excluded from the computation of diluted net loss per share for the period presented because including them would have been anti-dilutive are as follows (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2023 2022 2023 2022 Stock options 10,541 12,861 10,541 12,861 Restricted stock units 19,312 11,731 19,312 11,731 Early exercised stock options — 91 — 91 Shares issuable pursuant to the 2020 Employee Stock Purchase Plan 310 432 310 432 Total 30,163 25,115 30,163 25,115 |
Stockholders' Deficit
Stockholders' Deficit | 6 Months Ended |
Jul. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stockholders' Deficit | Stockholders’ Deficit Common Stock There are two classes of common stock that total 1,500,000,000 authorized shares: 1,000,000,000 authorized shares of Class A common stock and 500,000,000 authorized shares of Class B common stock. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting and conversion. Each share of Class A common stock is entitled to one vote per share. Each share of Class B common stock is entitled to 10 votes per share and is convertible into one share of Class A common stock. There were 134,116,846 shares of Class A common stock and 85,489,359 shares of Class B common stock issued and outstanding as of July 31, 2023. There were 128,803,395 shares of Class A common stock and 85,489,359 shares of Class B common stock outstanding as of January 31, 2023. All changes in the number of shares of common stock outstanding for the three and six months ended July 31, 2023 and 2022, were related to changes in Class A common stock. Private Placement—Related Party In September 2022, the Company issued and sold 19,273,127 shares of its Class A common stock to the Company’s CEO in a private placement transaction at a purchase price of $18.16 per share, based on the closing trading price of the Company’s Class A common stock on September 2, 2022, for aggregate gross proceeds of approximately $350 million. The Company incurred issuance costs related to the private placement of $2.7 million. Stock Plans The Company has a 2009 Stock Plan (the “2009 Plan”), a 2012 Amended and Restated Stock Plan (the “2012 Plan”), and a 2020 Equity Incentive Plan (the “2020 Plan”). Each plan was initially established to grant equity awards to employees and consultants of the Company to assist in attracting, retaining, and motivating employees and consultants and to provide incentives to promote the success of the Company’s business. The number of shares reserved for issuance under the 2020 Plan increased by 9,414,923 shares of Class A common stock on February 1, 2022 and increased by 10,714,637 shares of Class A common stock on February 1, 2023 pursuant to the evergreen provisions of the 2020 Plan. There are no outstanding awards under the 2009 Plan, and new issuances under the 2012 Plan terminated upon completion of the Direct Listing. Awards outstanding under the 2012 Plan continue to be outstanding and are governed by the provisions of the 2012 Plan. The 2020 Plan provides for the grant of incentive stock options (“ISOs”), within the meaning of Section 422 of the Code, nonstatutory stock options (“NSOs”), stock appreciation rights, restricted stock awards (“RSUs”), performance-based stock awards, and other forms of equity compensation. ISOs may be granted only to Company employees (including officers and directors who are also employees). NSOs may be granted to Company employees and consultants. Options under the 2020 Plan may be granted for periods of up to 10 years. The exercise price of ISOs and NSOs shall not be less than 100% of the estimated fair value of the shares on the date of grant as determined by the Company’s board of directors (the “Board of Directors”). Options granted generally vest over four years and vest at a rate of 25% upon the first anniversary of the vesting commencement date and 1/48 per month thereafter. The Company has outstanding RSU awards issued pursuant to the 2012 Plan and 2020 Plan. RSUs granted generally vest on a predefined rate over a period of four years contingent upon continuous service. Shares of common stock purchased under the 2012 Plan are subject to certain restrictions and repurchase rights. Stock Options Option activity under the Company’s combined stock plans is set forth below (in thousands, except years and per share data): Number of Shares Weighted- Average Exercise Price Weighted- Aggregate Intrinsic Value Balances at January 31, 2023 11,941 $ 2.96 5.1 $ 149,738 Options granted — — Options exercised (1,371) 2.24 Options cancelled (29) 6.49 Balances at July 31, 2023 10,541 $ 3.04 4.7 $ 223,842 Vested and exercisable at July 31, 2023 10,120 $ 3.00 4.7 $ 215,302 Vested and expected to vest at July 31, 2023 10,541 $ 3.04 4.7 $ 223,850 The total intrinsic value of options exercised during the periods presented was as follows: Three Months Ended July 31, Six Months Ended July 31, 2023 2022 2023 2022 Aggregate intrinsic value of options exercised (in thousands) $ 12,186 $ 7,842 $ 26,293 $ 41,055 Early Exercise of Employee Options The 2009 Plan and 2012 Plan allow for the early exercise of stock options. The consideration received for an early exercise of an option is considered to be a deposit of the exercise price, and the related dollar amount is recorded as a liability and reflected in accrued expenses and other current liabilities and other liabilities in the condensed consolidated balance sheets. This liability is reclassified to additional paid-in capital as the awards vest. If a stock option is early exercised, the unvested shares may be repurchased by the Company in case of employment termination at the price paid by the purchaser for such shares. Shares that were subject to repurchase totaled 384 and 90,531 at July 31, 2023 and 2022, respectively. Restricted Stock Units The Company’s RSU activity is set forth below (in thousands, except per share data): Number of Shares Weighted- Average Grant Date Fair Value Aggregate Intrinsic Value Unvested RSUs at January 31, 2023 14,591 $ 27.75 $ 226,145 RSUs granted 9,883 19.88 RSUs vested (3,605) 26.61 RSUs cancelled/forfeited (1,557) 29.03 Unvested RSUs at July 31, 2023 19,312 $ 23.83 $ 468,895 RSUs vested, not yet released at July 31, 2023 978 $ 39.65 Stock-Based Compensation Expense Stock-based compensation for stock-based awards to employees and non-employees in the Company’s condensed consolidated statements of operations for the periods below were as follows (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2023 2022 2023 2022 Cost of revenues $ 442 $ 418 $ 764 $ 739 Research and development 31,047 24,447 54,544 45,576 Sales and marketing 16,321 15,521 27,854 28,010 General and administrative 8,395 7,548 14,541 13,518 Total stock-based compensation expense $ 56,205 $ 47,934 $ 97,703 $ 87,843 The stock-based compensation expense related to options granted to non-employees for the three and six months ended July 31, 2023 and 2022 were not material. Total unrecognized compensation costs related to unvested awards not yet recognized under all equity compensation plans was as follows: July 31, 2023 Unrecognized Expense Weighted-Average Expected Recognition Period Stock options $ 814 2.6 RSUs 426,789 3.1 Total unrecognized stock-based compensation expense $ 427,603 3.1 2020 Employee Stock Purchase Plan In September 2020, the Board of Directors adopted and approved the 2020 Employee Stock Purchase Plan (“ESPP”), which became effective on the effective date of the Company's registration statement on Form S-1 filed with the SEC in connection with the Direct Listing. The ESPP initially reserved and authorized the issuance of up to a total of 2,000,000 shares of Class A common stock to participating employees. The number of shares reserved under the ESPP was automatically increased on February 1, 2021 to 3,614,801 shares of Class A common stock, to 5,497,785 on February 1, 2022, and to 7,640,712 on February 1, 2023 pursuant to the evergreen provisions of the ESPP. Subject to any limitations contained therein, the ESPP allows eligible participants to contribute, through payroll deductions, up to 15% of their eligible compensation to purchase shares of the Company’s Class A common stock at a purchase price equal to 85% of the fair market value of the Class A common stock on either the first day of the offering period or the purchase date, whichever fair market value is lower. The ESPP generally provides for consecutive 24-month offering periods, each consisting of four separate consecutive purchase periods of approximately six months in length. The ESPP also includes a two year look back in purchase price, including a reset feature. The reset feature is triggered if the price on the date of purchase is less than the price on the first day of the offering period. The Company recognized stock-based compensation expense related to the ESPP of $2.8 million and $1.8 million during the three months ended July 31, 2023 and 2022, respectively, and $3.3 million and $3.7 million during six months ended July 31, 2023 and 2022, respectively. As of July 31, 2023 and January 31, 2023, $5.8 million and $6.9 million, respectively, have been withheld in contributions from employees. As of July 31, 2023, total unrecognized compensation cost related to the ESPP was $7.8 million, which will be amortized over a weighted average vesting term of 1.1 years. |
Interest Income and Other Incom
Interest Income and Other Income (Expense), Net | 6 Months Ended |
Jul. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Interest Income and Other Income (Expense), Net | Interest Income and Other Income (Expense), Net Interest income and other income (expense), net consist of the following (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2023 2022 2023 2022 Interest income $ 4,623 $ 551 $ 9,615 $ 743 Unrealized gains (losses) on foreign currency transactions (283) 252 416 (391) Other non-operating expense (175) (967) (200) (1,862) Total interest income and other income (expense), net $ 4,165 $ (164) $ 9,831 $ (1,510) Other non-operating expense consists primarily of realized foreign currency gains and losses on transactions in the periods presented. |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe Company's income tax expense was $1.2 million and $1.2 million for the three months ended July 31, 2023 and 2022, respectively, and $2.1 million and $2.2 million for the six months ended July 31, 2023 and 2022, respectively, primarily due to income taxes in foreign jurisdictions. |
Geographic Information
Geographic Information | 6 Months Ended |
Jul. 31, 2023 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information The following tables set forth revenues and long-lived assets, including operating lease ROU assets, by geographic area for the periods presented below (in thousands): Revenues Three Months Ended July 31, Six Months Ended July 31, 2023 2022 2023 2022 United States $ 99,222 $ 81,395 $ 192,215 $ 152,624 International 63,233 53,501 122,651 102,918 Total revenues $ 162,455 $ 134,896 $ 314,866 $ 255,542 Revenues by geography are based on the billing address of the customer. Long-Lived Assets July 31, 2023 January 31, 2023 United States $ 278,116 $ 265,582 International 4,934 5,591 Total long-lived assets $ 283,050 $ 271,173 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jul. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company has entered into an advertising agreement with a company affiliated with a Board member of the Company. Expenses under this agreement totaled $0.2 million and $0.6 million during the three months ended July 31, 2023 and 2022, respectively, and $0.5 million and $1.0 million during the six months ended July 31, 2023 and 2022, respectively . The Company has entered into an advertising agreement with a company affiliated with a Board member of the Company. Expenses under this agreement totaled $0.5 million and $1.2 million during the three months ended July 31, 2023 and 2022, respectively, and $1.0 million and $1.8 million during the six months ended July 31, 2023 and 2022, respectively |
Restructuring
Restructuring | 6 Months Ended |
Jul. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring On November 15, 2022, the Company authorized a plan to reduce its global headcount by approximately 9%. This plan was adopted as part of a restructuring intended to improve operational efficiencies and operating costs and better align the Company’s workforce with current business needs, top strategic priorities, and key growth opportunities. The Company has completed payments associated with these restructuring charges in the six months ended July 31, 2023 and did not incur any restructuring costs during the three and six months ended July 31, 2023 and 2022. The following table summarizes the Company’s restructuring liabilities (in thousands): Restructuring Liability Beginning balance as of February 1, 2023 $ 873 Charges (benefit) (147) Payments (707) Foreign currency translation adjustment (19) Ending balance as of July 31, 2023 $ — |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) and include the accounts of the Company’s wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated on consolidation. |
Basis of Accounting | The unaudited condensed consolidated balance sheet as of January 31, 2023 included herein was derived from the audited financial statements as of that date, but does not include all disclosures, including certain notes required by GAAP on an annual reporting basis. In management's opinion, the unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to state fairly the balance sheet, statements of comprehensive loss, and stockholders' equity (deficit), and statements of cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year or any future period. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K filed with the SEC on March 24, 2023. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Estimates and assumptions reflected in the consolidated financial statements include, but are not limited to, revenue recognition, the useful lives and carrying values of long-lived assets, the fair value of common stock for periods prior to the Company’s direct listing of its Class A common stock on the New York Stock Exchange (“NYSE”) (the “Direct Listing”), stock-based compensation expense, the period of benefit for deferred contract acquisition costs, income taxes, and the valuation of right-of-use assets. Actual results could differ from those estimates. |
Risks and Uncertainties | Risks and Uncertainties Global macroeconomic events including elevated inflation, the U.S. Federal Reserve raising interest rates, bank failures, supply chain disruptions, fluctuations in currency exchange rates, the Russian invasion of Ukraine, and the residual impact of the COVID-19 pandemic have led to economic uncertainty. These macroeconomic conditions have and are likely to continue to have adverse effects on the rate of global IT spending, including the buying patterns of the Company’s customers and prospective customers. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents, and marketable securities. The Company deposits its cash and cash equivalents with financial institutions that management believes are of high credit quality, although such deposits may, at times, exceed federally insured limits. The Company has not experienced any losses on its deposits of cash and cash equivalents to date. Cash equivalents are invested in highly rated money market funds. The Company grants credit to customers in the normal course of business. For the three and six months ended July 31, 2023 and July 31, 2022, there were no individual customers that accounted for 10% or more of the Company’s revenues. No customer accounted for more than 10% of accounts receivable as of July 31, 2023 or January 31, 2023. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the reporting date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. Fair value is estimated by utilizing a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1—Observable inputs comprised of quoted prices for identical assets or liabilities in active markets. Level 2—Inputs other than the quoted prices in active markets that are observable either directly or indirectly. Level 3—Unobservable inputs in which there is little or no market data and that are significant to the fair value of the assets or liabilities. In determining fair value, a financial instrument’s classification within the three-tier fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. The carrying amount of certain financial instruments, including cash, accounts receivable, accounts payable, and accrued liabilities approximates their fair values due to their short-term nature. |
Available-for-sale Investments | Available-for-sale Investments The Company’s marketable securities are primarily comprised of U.S. government securities, commercial paper, and corporate bonds. The Company classifies its securities as available-for-sale at the time of purchase and reevaluates such classification at each balance sheet date. The Company may sell these securities at any time for use in current operations even if they have not yet reached maturity. As a result, the Company classifies its marketable securities, including securities with stated maturities beyond twelve months, within current assets in the condensed consolidated balance sheets. Available-for-sale securities are carried at fair value with unrealized gains and losses reported in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity (deficit) until realized. Unrealized gains and losses for any marketable securities that management intends to sell or is more likely than not that management will be required to sell prior to their anticipated recovery are recorded in other income (expense), net. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such asset groups may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset group to future undiscounted cash flows expected to be generated by the asset group. If such assets are considered to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. The Company recorded an impairment charge of $5.0 million during the three and six months ended July 31, 2023, related to the right-of-use (“ROU”) assets and underlying property and equipment associated with its subleased office spaces further described in Note 8. Leases to the condensed consolidated financial statements. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements On February 1, 2023, the Company adopted ASU No. 2021-08 , Business Combinations - Accounting for Contract Liabilities from Contracts with Customers, which requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities from acquired contracts using the revenue recognition guidance under Accounting Standards Codification Topic 606 in order to align the recognition of a contract liability with the definition of a performance obligation. |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jul. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Deferred Contract Acquisition Costs | The following table summarizes the activity of deferred contract acquisition costs (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2023 2022 2023 2022 Beginning balance $ 37,338 $ 25,807 $ 36,583 $ 22,771 Capitalization of contract acquisition costs 6,430 5,947 12,056 12,028 Amortization of deferred contract acquisition costs (5,432) (3,527) (10,303) (6,572) Ending balance $ 38,336 $ 28,227 $ 38,336 $ 28,227 Deferred contract acquisition costs, current $ 20,110 $ 13,724 $ 20,110 $ 13,724 Deferred contract acquisition costs, noncurrent 18,226 14,503 18,226 14,503 Total deferred contract acquisition costs $ 38,336 $ 28,227 $ 38,336 $ 28,227 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis | The following table summarizes, for assets and liabilities measured at fair value, the respective fair value and classification by level of input within the fair value hierarchy (in thousands): July 31, 2023 Level 1 Level 2 Level 3 Total Current Assets Cash equivalents Money market funds $ 275,484 $ — $ — $ 275,484 Total cash equivalents $ 275,484 $ — $ — $ 275,484 Marketable securities U.S. government agency securities $ 106,541 $ — $ — $ 106,541 Corporate bonds — 17,268 — 17,268 Total marketable securities $ 106,541 $ 17,268 $ — $ 123,809 Total assets $ 382,025 $ 17,268 $ — $ 399,293 January 31, 2023 Level 1 Level 2 Level 3 Total Current Assets Cash equivalents Money market funds $ 289,001 $ — $ — $ 289,001 Total cash equivalents $ 289,001 $ — $ — $ 289,001 Marketable securities Corporate bonds $ — $ 2,739 $ — $ 2,739 Total marketable securities $ — $ 2,739 $ — $ 2,739 Total assets $ 289,001 $ 2,739 $ — $ 291,740 |
Schedule of Debt Securities, Available-for-sale | The following table summarizes the Company's investments in marketable securities on the condensed consolidated balance sheets (in thousands): July 31, 2023 Amortized Gross Gross Unrealized Losses Estimated Current Assets U.S. government agency securities $ 107,428 $ — $ (887) $ 106,541 Corporate bonds 17,401 8 (141) 17,268 Total marketable securities $ 124,829 $ 8 $ (1,028) $ 123,809 January 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Current Assets Corporate bonds $ 2,744 $ — $ (5) $ 2,739 Total marketable securities $ 2,744 $ — $ (5) $ 2,739 |
Schedule of Contractual Maturities | The following table presents the contractual maturities of the Company’s marketable securities as of July 31, 2023 (in thousands): July 31, 2023 Amortized Cost Estimated Fair Value Due within one year $ 39,428 $ 39,302 Due within one to three years 85,401 84,507 Total $ 124,829 $ 123,809 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 6 Months Ended |
Jul. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Property and Equipment, Net | Property and Equipment, Net Property and equipment, net, consisted of the following (in thousands): July 31, 2023 January 31, 2023 Leasehold improvements $ 100,590 $ 98,264 Capitalized internal-use software 18,783 15,005 Furniture and fixtures 11,719 10,325 Desktop and other computer equipment 1,969 1,804 Construction in progress 19 652 Total gross property and equipment 133,080 126,050 Less: Accumulated depreciation and amortization (35,142) (31,066) Total property and equipment, net $ 97,938 $ 94,984 |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): July 31, 2023 January 31, 2023 Prepaid expenses $ 22,401 $ 25,134 Deferred contract acquisition costs, current 20,110 18,049 Other current assets 4,719 5,543 Total prepaid expenses and other current assets $ 47,230 $ 48,726 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): July 31, 2023 January 31, 2023 Accrued payroll liabilities $ 16,558 $ 22,336 Accrued taxes for fringe benefits 10,139 8,064 Accrued sales and value-added taxes 9,938 13,347 Accrued advertising expenses 5,210 10,565 Accrued consulting expenses 3,439 4,076 Other liabilities 22,188 25,100 Total accrued expenses and other current liabilities $ 67,472 $ 83,488 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jul. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The net carrying amounts of the credit facilities were as follows (in thousands): July 31, 2023 January 31, 2023 Principal $ 48,125 $ 50,000 Accrued interest 272 218 Unamortized loan issuance costs (156) (179) Net carrying amount $ 48,241 $ 50,039 Credit facilities, current $ 2,772 $ 3,343 Credit facilities, noncurrent $ 45,469 $ 46,696 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jul. 31, 2023 | |
Leases [Abstract] | |
Schedule of Operating Lease, Liability, Maturity | Future minimum lease payments (net of tenant improvement receivables) under non-cancelable operating leases with initial lease terms in excess of one year included in the Company’s lease liabilities as of July 31, 2023 are as follows (in thousands): Fiscal year ending January 31, Operating Lease Payments (Net) 2024 $ 18,567 2025 38,379 2026 37,275 2027 38,075 2028 and thereafter 238,501 Total undiscounted operating lease payments $ 370,797 Less: imputed interest (131,276) Total operating lease liabilities $ 239,521 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 6 Months Ended |
Jul. 31, 2023 | |
Earnings Per Share [Abstract] | |
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): Three Months Ended July 31, Six Months Ended July 31, 2023 2022 2023 2022 Numerator: Net loss $ (71,414) $ (112,969) $ (132,882) $ (211,837) Denominator: Weighted-average shares used in calculating net loss per share, basic and diluted 219,004 191,352 217,730 190,486 Net loss per share, basic and diluted $ (0.33) $ (0.59) $ (0.61) $ (1.11) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The potential shares of common stock that were excluded from the computation of diluted net loss per share for the period presented because including them would have been anti-dilutive are as follows (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2023 2022 2023 2022 Stock options 10,541 12,861 10,541 12,861 Restricted stock units 19,312 11,731 19,312 11,731 Early exercised stock options — 91 — 91 Shares issuable pursuant to the 2020 Employee Stock Purchase Plan 310 432 310 432 Total 30,163 25,115 30,163 25,115 |
Stockholders' Deficit (Tables)
Stockholders' Deficit (Tables) | 6 Months Ended |
Jul. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Options Activity | Option activity under the Company’s combined stock plans is set forth below (in thousands, except years and per share data): Number of Shares Weighted- Average Exercise Price Weighted- Aggregate Intrinsic Value Balances at January 31, 2023 11,941 $ 2.96 5.1 $ 149,738 Options granted — — Options exercised (1,371) 2.24 Options cancelled (29) 6.49 Balances at July 31, 2023 10,541 $ 3.04 4.7 $ 223,842 Vested and exercisable at July 31, 2023 10,120 $ 3.00 4.7 $ 215,302 Vested and expected to vest at July 31, 2023 10,541 $ 3.04 4.7 $ 223,850 |
Summary of Weighted-Average Grant-Date Fair Value of Options Granted and Total Intrinsic Value of Options Exercised | The total intrinsic value of options exercised during the periods presented was as follows: Three Months Ended July 31, Six Months Ended July 31, 2023 2022 2023 2022 Aggregate intrinsic value of options exercised (in thousands) $ 12,186 $ 7,842 $ 26,293 $ 41,055 |
Schedule of RSU Activity | The Company’s RSU activity is set forth below (in thousands, except per share data): Number of Shares Weighted- Average Grant Date Fair Value Aggregate Intrinsic Value Unvested RSUs at January 31, 2023 14,591 $ 27.75 $ 226,145 RSUs granted 9,883 19.88 RSUs vested (3,605) 26.61 RSUs cancelled/forfeited (1,557) 29.03 Unvested RSUs at July 31, 2023 19,312 $ 23.83 $ 468,895 RSUs vested, not yet released at July 31, 2023 978 $ 39.65 |
Schedule of Stock-Based Compensation Expense | Stock-based compensation for stock-based awards to employees and non-employees in the Company’s condensed consolidated statements of operations for the periods below were as follows (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2023 2022 2023 2022 Cost of revenues $ 442 $ 418 $ 764 $ 739 Research and development 31,047 24,447 54,544 45,576 Sales and marketing 16,321 15,521 27,854 28,010 General and administrative 8,395 7,548 14,541 13,518 Total stock-based compensation expense $ 56,205 $ 47,934 $ 97,703 $ 87,843 |
Summary of Unrecognized Compensation Costs, Related to Unvested Awards | Total unrecognized compensation costs related to unvested awards not yet recognized under all equity compensation plans was as follows: July 31, 2023 Unrecognized Expense Weighted-Average Expected Recognition Period Stock options $ 814 2.6 RSUs 426,789 3.1 Total unrecognized stock-based compensation expense $ 427,603 3.1 |
Interest Income and Other Inc_2
Interest Income and Other Income (Expense), Net (Tables) | 6 Months Ended |
Jul. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of Interest and Other Income (Expense), Net | Interest income and other income (expense), net consist of the following (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2023 2022 2023 2022 Interest income $ 4,623 $ 551 $ 9,615 $ 743 Unrealized gains (losses) on foreign currency transactions (283) 252 416 (391) Other non-operating expense (175) (967) (200) (1,862) Total interest income and other income (expense), net $ 4,165 $ (164) $ 9,831 $ (1,510) |
Geographic Information (Tables)
Geographic Information (Tables) | 6 Months Ended |
Jul. 31, 2023 | |
Segment Reporting [Abstract] | |
Revenue by Geographic Areas | Revenues Three Months Ended July 31, Six Months Ended July 31, 2023 2022 2023 2022 United States $ 99,222 $ 81,395 $ 192,215 $ 152,624 International 63,233 53,501 122,651 102,918 Total revenues $ 162,455 $ 134,896 $ 314,866 $ 255,542 |
Long-lived Assets by Geographic Areas | Long-Lived Assets July 31, 2023 January 31, 2023 United States $ 278,116 $ 265,582 International 4,934 5,591 Total long-lived assets $ 283,050 $ 271,173 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jul. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The Company has completed payments associated with these restructuring charges in the six months ended July 31, 2023 and did not incur any restructuring costs during the three and six months ended July 31, 2023 and 2022. The following table summarizes the Company’s restructuring liabilities (in thousands): Restructuring Liability Beginning balance as of February 1, 2023 $ 873 Charges (benefit) (147) Payments (707) Foreign currency translation adjustment (19) Ending balance as of July 31, 2023 $ — |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Deferred revenue recognized | $ 65.6 | $ 50.2 | $ 166.1 | $ 124.2 |
Revenue, remaining performance obligation, amount | $ 333.4 | $ 333.4 | ||
Deferred contract acquisition costs, amortization period | 3 years | 3 years | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-08-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue, remaining performance obligation, percentage | 86% | 86% | ||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months | 12 months |
Revenues - Deferred Contract Ac
Revenues - Deferred Contract Acquisition Costs Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | Jan. 31, 2023 | |
Capitalized Contract Costs [Roll Forward] | |||||
Beginning balance | $ 37,338 | $ 25,807 | $ 36,583 | $ 22,771 | |
Capitalization of contract acquisition costs | 6,430 | 5,947 | 12,056 | 12,028 | |
Amortization of deferred contract acquisition costs | (5,432) | (3,527) | (10,303) | (6,572) | |
Ending balance | 38,336 | 28,227 | 38,336 | 28,227 | |
Deferred contract acquisition costs, current | 20,110 | 13,724 | 20,110 | 13,724 | $ 18,049 |
Deferred contract acquisition costs, noncurrent | 18,226 | 14,503 | 18,226 | 14,503 | |
Total deferred contract acquisition costs | $ 38,336 | $ 28,227 | $ 38,336 | $ 28,227 | $ 36,583 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Jul. 31, 2023 | Jan. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 275,484 | $ 289,001 |
Marketable securities | 123,809 | 2,739 |
Total assets | 399,293 | 291,740 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 275,484 | 289,001 |
U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 106,541 | |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 17,268 | 2,739 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 275,484 | 289,001 |
Marketable securities | 106,541 | 0 |
Total assets | 382,025 | 289,001 |
Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 275,484 | 289,001 |
Level 1 | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 106,541 | |
Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Marketable securities | 17,268 | 2,739 |
Total assets | 17,268 | 2,739 |
Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Level 2 | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 17,268 | 2,739 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Marketable securities | 0 | 0 |
Total assets | 0 | 0 |
Level 3 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Level 3 | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Level 3 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 0 | $ 0 |
Fair Value Measurements - Inves
Fair Value Measurements - Investments (Details) - USD ($) $ in Thousands | Jul. 31, 2023 | Jan. 31, 2023 |
Current assets | ||
Amortized Cost | $ 124,829 | $ 2,744 |
Gross Unrealized Gains | 8 | 0 |
Gross Unrealized Losses | (1,028) | (5) |
Estimated Fair Value | 123,809 | 2,739 |
U.S. government agency securities | ||
Current assets | ||
Amortized Cost | 107,428 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (887) | |
Estimated Fair Value | 106,541 | |
Corporate bonds | ||
Current assets | ||
Amortized Cost | 17,401 | 2,744 |
Gross Unrealized Gains | 8 | 0 |
Gross Unrealized Losses | (141) | (5) |
Estimated Fair Value | $ 17,268 | $ 2,739 |
Fair Value Measurements - Contr
Fair Value Measurements - Contractual Maturities (Details) - USD ($) $ in Thousands | Jul. 31, 2023 | Jan. 31, 2023 |
Amortized Cost | ||
Due within one year | $ 39,428 | |
Due within one to three years | 85,401 | |
Amortized Cost | 124,829 | $ 2,744 |
Estimated Fair Value | ||
Due within one year | 39,302 | |
Due within one to three years | 84,507 | |
Estimated Fair Value | $ 123,809 | $ 2,739 |
Balance Sheet Components - Prop
Balance Sheet Components - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jul. 31, 2023 | Jan. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Total gross property and equipment | $ 133,080 | $ 126,050 |
Less: Accumulated depreciation and amortization | (35,142) | (31,066) |
Property and equipment, net | 97,938 | 94,984 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total gross property and equipment | 100,590 | 98,264 |
Capitalized internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Total gross property and equipment | 18,783 | 15,005 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total gross property and equipment | 11,719 | 10,325 |
Desktop and other computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total gross property and equipment | 1,969 | 1,804 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total gross property and equipment | $ 19 | $ 652 |
Balance Sheet Components - Narr
Balance Sheet Components - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Depreciation and amortization | $ 3.6 | $ 3.2 | $ 6.9 | $ 6.3 |
Balance Sheet Components - Prep
Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jul. 31, 2023 | Jan. 31, 2023 | Jul. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Prepaid expenses | $ 22,401 | $ 25,134 | |
Deferred contract acquisition costs, current | 20,110 | 18,049 | $ 13,724 |
Other current assets | 4,719 | 5,543 | |
Total prepaid expenses and other current assets | $ 47,230 | $ 48,726 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jul. 31, 2023 | Jan. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued payroll liabilities | $ 16,558 | $ 22,336 |
Accrued taxes for fringe benefits | 10,139 | 8,064 |
Accrued sales and value-added taxes | 9,938 | 13,347 |
Accrued advertising expenses | 5,210 | 10,565 |
Accrued consulting expenses | 3,439 | 4,076 |
Other liabilities | 22,188 | 25,100 |
Total accrued expenses and other current liabilities | $ 67,472 | $ 83,488 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 1 Months Ended | 6 Months Ended | ||
Nov. 30, 2022 | Apr. 30, 2020 | Jul. 31, 2023 | Jan. 31, 2023 | |
Line of Credit Facility [Line Items] | ||||
Debt issuance costs, net | $ 400,000 | |||
Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, term (in years) | 4 years | |||
Debt outstanding | $ 48,125,000 | $ 50,000,000 | ||
Debt issuance costs, net | 156,000 | $ 179,000 | ||
Credit Agreement | Revolving Credit Facility | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, covenant, consolidated adjusted quick ratio | 1 | |||
Credit Agreement | Revolving Credit Facility | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, covenant, consolidated adjusted quick ratio | 1.25 | |||
Credit Agreement | Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit, maximum borrowing facility | $ 30,000,000 | |||
Secured Debt | Term Loan Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Long-term debt, term (in years) | 5 years | |||
Long-term debt, face amount | $ 40,000,000 | |||
Proceeds from term loan, net of issuance costs | 50,000,000 | |||
Debt outstanding | 48,100,000 | |||
Secured Debt | Term Loan Agreement | Prime Rate | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0% | |||
Secured Debt | Term Loan Agreement | Prime Rate | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | (1.00%) | |||
Line of Credit | Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit, maximum borrowing facility | 150,000,000 | |||
Line of Credit | Credit Agreement | Term Loan Facility | ||||
Line of Credit Facility [Line Items] | ||||
Long-term debt, face amount | $ 50,000,000 | |||
Debt instrument, basis spread on variable rate | 2.25% | |||
Line of Credit | Credit Agreement | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit, maximum borrowing facility | $ 100,000,000 | |||
Line of credit facility, commitment fee percentage | 0.15% | |||
Letters of credit outstanding, amount | 23,000,000 | |||
Line of credit, remaining borrowing capacity | $ 77,000,000 | |||
Debt issuance costs, net | $ 200,000 | |||
Line of Credit | Credit Agreement | ABR Loans | ||||
Line of Credit Facility [Line Items] | ||||
Convertible notes, interest rate, stated percentage | 1.25% | |||
Line of Credit | Credit Agreement | Secured Overnight Financing Rate (SOFR) | Term Loan Facility | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.10% |
Debt - Net Carrying Amount of T
Debt - Net Carrying Amount of Term Loan (Details) - USD ($) $ in Thousands | Jul. 31, 2023 | Jan. 31, 2023 | Nov. 30, 2022 |
Debt Instrument [Line Items] | |||
Unamortized loan issuance costs | $ (400) | ||
Credit Agreement | |||
Debt Instrument [Line Items] | |||
Principal | $ 48,125 | $ 50,000 | |
Accrued interest | 272 | 218 | |
Unamortized loan issuance costs | (156) | (179) | |
Net carrying amount | 48,241 | 50,039 | |
Credit facilities, current | 2,772 | 3,343 | |
Credit facilities, noncurrent | $ 45,469 | $ 46,696 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 1 Months Ended | |
Jan. 31, 2021 | Jul. 31, 2023 | |
Other Commitments [Line Items] | ||
Long-term purchase commitment, period | 60 months | |
Minimum spending amount | $ 103.5 | |
Purchase commitment, maximum offsetting amount | $ 7.3 | |
Hosting-Related Services | ||
Other Commitments [Line Items] | ||
Purchase commitment remaining | $ 49.7 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) $ in Thousands | Jul. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 18,567 |
2025 | 38,379 |
2026 | 37,275 |
2027 | 38,075 |
2028 and thereafter | 238,501 |
Total undiscounted operating lease payments | 370,797 |
Less: imputed interest | (131,276) |
Total operating lease liabilities | $ 239,521 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 6 Months Ended |
Jul. 31, 2023 USD ($) | |
Leases [Abstract] | |
Lessor, operating lease, minimum payment to be received | $ 8.8 |
Impairment of long-lived assets | 5 |
Lessee, operating lease, lease not yet commenced, undiscounted amount | $ 8.8 |
Lessee, operating lease, sublease, lease not yet commenced, term (in years) | 5 years |
Lessee, operating lease, lease not yet commenced, liability | $ 2.4 |
Lessee, operating lease, lease not yet commenced, term (less than) (in years) | 2 years |
Net Loss per Share (Details)
Net Loss per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Numerator: | ||||
Net loss | $ (71,414) | $ (112,969) | $ (132,882) | $ (211,837) |
Denominator: | ||||
Weighted-average shares used in calculating net loss per share, basic (in shares) | 219,004 | 191,352 | 217,730 | 190,486 |
Weighted-average shares used in calculating net loss per share, diluted (in shares) | 219,004 | 191,352 | 217,730 | 190,486 |
Net loss per share, basic (in dollars per share) | $ (0.33) | $ (0.59) | $ (0.61) | $ (1.11) |
Net loss per share, diluted (in dollars per share) | $ (0.33) | $ (0.59) | $ (0.61) | $ (1.11) |
Net Loss per Share - Antidiluti
Net Loss per Share - Antidilutive Securities (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Antidilutive securities (in shares) | 30,163,000 | 25,115,000 | 30,163,000 | 25,115,000 |
Stock options | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Antidilutive securities (in shares) | 10,541,000 | 12,861,000 | 10,541,000 | 12,861,000 |
Restricted stock units | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Antidilutive securities (in shares) | 19,312,000 | 11,731,000 | 19,312,000 | 11,731,000 |
Early exercised stock options | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Antidilutive securities (in shares) | 0 | 91,000 | 384 | 90,531 |
Shares issuable pursuant to the 2020 Employee Stock Purchase Plan | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Antidilutive securities (in shares) | 310,000 | 432,000 | 310,000 | 432,000 |
Stockholders' Deficit - Narrati
Stockholders' Deficit - Narrative (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Feb. 01, 2023 shares | Feb. 01, 2022 shares | Sep. 30, 2022 USD ($) $ / shares shares | Sep. 30, 2020 purchasePeriod shares | Jul. 31, 2023 USD ($) shares | Jul. 31, 2022 USD ($) shares | Jul. 31, 2023 USD ($) vote shares | Jul. 31, 2022 USD ($) shares | Jan. 31, 2023 USD ($) shares | Feb. 01, 2021 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Common stock, shares authorized (in shares) | 1,500,000,000 | 1,500,000,000 | ||||||||
Options, number of shares, period increase (decrease) | 10,714,637 | 9,414,923 | ||||||||
Antidilutive securities (in shares) | 30,163,000 | 25,115,000 | 30,163,000 | 25,115,000 | ||||||
Share-based payment arrangement, offering period (in months) | 24 months | |||||||||
Total stock-based compensation expense | $ | $ 56,205 | $ 47,934 | $ 97,703 | $ 87,843 | ||||||
Employee contributions withheld | $ | 5,800 | 5,800 | $ 6,900 | |||||||
Unrecognized expense | $ | $ 427,603 | $ 427,603 | ||||||||
Early exercised stock options | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Antidilutive securities (in shares) | 0 | 91,000 | 384 | 90,531 | ||||||
Stock options | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Options, expiration period | 10 years | |||||||||
Exercise price, minimum threshold, as a 100% of estimated fair value on the date of grant | 100% | |||||||||
Vesting period | 4 years | |||||||||
Stock options | Share-based Payment Arrangement, Tranche One | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 25% | |||||||||
Stock options | Share-Based Payment Arrangement, Tranche Two | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 2.08% | |||||||||
Restricted stock units | Maximum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 4 years | |||||||||
Employee Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Common stock, shares reserved for future issuance (in shares) | 2,000,000 | |||||||||
Increase in authorized share amount (in shares) | 7,640,712 | 5,497,785 | 3,614,801 | |||||||
Share-based payment arrangement, maximum employee subscription rate | 15% | |||||||||
Purchase price of common stock, percent | 85% | |||||||||
Share-based payment arrangement, offering period (in months) | 6 months | |||||||||
Share-based payment arrangement, number of purchase periods | purchasePeriod | 4 | |||||||||
Share-based payment arrangement, look-back feature, term (in years) | 2 years | |||||||||
Total stock-based compensation expense | $ | $ 2,800 | $ 1,800 | $ 3,300 | $ 3,700 | ||||||
Unrecognized expense | $ | $ 7,800 | $ 7,800 | ||||||||
Unrecognized expense, period for recognition | 1 year 1 month 6 days | |||||||||
Common Class A | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 | ||||||||
Number of votes per share | vote | 1 | |||||||||
Conversion of stock, shares converted (in shares) | 1 | |||||||||
Common stock, shares issued (in shares) | 134,116,846 | 134,116,846 | 128,803,395 | |||||||
Common stock, shares outstanding (in shares) | 134,116,846 | 134,116,846 | ||||||||
Common Class A | Private Placement, Related Party | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Issuance of common stock upon private placement—related party, net of issuance costs (in shares) | 19,273,127 | |||||||||
Shares issued, price per share (in USD per share) | $ / shares | $ 18.16 | |||||||||
Sale of stock, consideration received on transaction, gross | $ | $ 350,000 | |||||||||
Payment of stock issuance costs | $ | $ 2,700 | |||||||||
Common Class B | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 | ||||||||
Number of votes per share | vote | 10 | |||||||||
Common stock, shares issued (in shares) | 85,489,359 | 85,489,359 | 85,489,359 | |||||||
Common stock, shares outstanding (in shares) | 85,489,359 | 85,489,359 |
Stockholders' Deficit - Schedul
Stockholders' Deficit - Schedule of Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | Jan. 31, 2023 | |
Number of Shares | |||||
Beginning balance (in shares) | 11,941 | ||||
Options granted (in shares) | 0 | ||||
Options exercised (in shares) | (1,371) | ||||
Options canceled (in shares) | (29) | ||||
Ending balance (in shares) | 10,541 | 10,541 | 11,941 | ||
Vested and exercisable, end of period (in shares) | 10,120 | 10,120 | |||
Vested and expected to vest, end of period (in shares) | 10,541 | 10,541 | |||
Weighted- Average Exercise Price | |||||
Beginning balance (in dollars per share) | $ 2.96 | ||||
Options granted (in dollars per share) | 0 | ||||
Options exercised (in dollars per share) | 2.24 | ||||
Options canceled (in dollars per share) | 6.49 | ||||
Ending balance (in dollars per share) | $ 3.04 | 3.04 | $ 2.96 | ||
Vested and exercisable, end of period (in dollars per share) | 3 | 3 | |||
Vested and expected to vest, end of period (in dollars per share) | $ 3.04 | $ 3.04 | |||
Stock Options Additional Disclosures | |||||
Weighted- Average Remaining Contractual Term (in years) | 4 years 8 months 12 days | 5 years 1 month 6 days | |||
Weighted average remaining contractual term, vested and exercisable (in years) | 4 years 8 months 12 days | ||||
Weighted average remaining contractual term, vested and expected to vest (in years) | 4 years 8 months 12 days | ||||
Aggregate intrinsic value, outstanding | $ 223,842 | $ 223,842 | $ 149,738 | ||
Aggregate intrinsic value, vested and exercisable | 215,302 | 215,302 | |||
Aggregate intrinsic value, vested and expected to vest | 223,850 | 223,850 | |||
Aggregate intrinsic value of options exercised (in thousands) | $ 12,186 | $ 7,842 | $ 26,293 | $ 41,055 |
Stockholders' Deficit - Sched_2
Stockholders' Deficit - Schedule of RSU Activity (Details) - Restricted stock units - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | |
Jul. 31, 2023 | Jan. 31, 2023 | |
Number of Shares | ||
Beginning Balance (in shares) | 14,591 | |
RSUs granted (in shares) | 9,883 | |
RSUs vested (in shares) | (3,605) | |
RSUs cancelled/forfeited (in shares) | (1,557) | |
Ending Balance (in shares) | 19,312 | |
RSUs vested, not released (in shares) | 978 | |
Weighted- Average Grant Date Fair Value | ||
Beginning Balance (in dollars per share) | $ 27.75 | |
RSUs granted (in dollars per share) | 19.88 | |
RSUs vested (in dollars per share) | 26.61 | |
RSUs cancelled/forfeited (in dollars per share) | 29.03 | |
Ending Balance (in dollars per share) | 23.83 | |
RSUs vested, not released (in dollars per share) | $ 39.65 | |
Aggregate Intrinsic Value | $ 468,895 | $ 226,145 |
Stockholders' Deficit - Stock-b
Stockholders' Deficit - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 56,205 | $ 47,934 | $ 97,703 | $ 87,843 |
Unrecognized expense, stock options | 814 | 814 | ||
Unrecognized expense, RSUs | 426,789 | 426,789 | ||
Total unrecognized stock-based compensation expense | 427,603 | $ 427,603 | ||
Weighted-Average Expected Recognition Period (in years) | 3 years 1 month 6 days | |||
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-Average Expected Recognition Period (in years) | 2 years 7 months 6 days | |||
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-Average Expected Recognition Period (in years) | 3 years 1 month 6 days | |||
Cost of revenues | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 442 | 418 | $ 764 | 739 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 31,047 | 24,447 | 54,544 | 45,576 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 16,321 | 15,521 | 27,854 | 28,010 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 8,395 | $ 7,548 | $ 14,541 | $ 13,518 |
Interest Income and Other Inc_3
Interest Income and Other Income (Expense), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Other Income and Expenses [Abstract] | ||||
Interest income | $ 4,623 | $ 551 | $ 9,615 | $ 743 |
Unrealized gains (losses) on foreign currency transactions | (283) | 252 | 416 | (391) |
Other non-operating expense | (175) | (967) | (200) | (1,862) |
Interest income and other income (expense), net | $ 4,165 | $ (164) | $ 9,831 | $ (1,510) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 1,228 | $ 1,222 | $ 2,150 | $ 2,155 |
Geographic Information (Details
Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | Jan. 31, 2023 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenues | $ 162,455 | $ 134,896 | $ 314,866 | $ 255,542 | |
Long-lived assets | 283,050 | 283,050 | $ 271,173 | ||
United States | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenues | 99,222 | 81,395 | 192,215 | 152,624 | |
Long-lived assets | 278,116 | 278,116 | 265,582 | ||
International | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenues | 63,233 | $ 53,501 | 122,651 | $ 102,918 | |
Long-lived assets | $ 4,934 | $ 4,934 | $ 5,591 |
Related Party Transactions (Det
Related Party Transactions (Details) - Affiliated Entity - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Advertising Expense One | ||||
Related Party Transaction [Line Items] | ||||
Amount of related party transactions | $ 0.2 | $ 0.6 | $ 0.5 | $ 1 |
Advertising Agreement Two | ||||
Related Party Transaction [Line Items] | ||||
Amount of related party transactions | $ 0.5 | $ 1.2 | $ 1 | $ 1.8 |
Restructuring (Details)
Restructuring (Details) | Nov. 15, 2022 |
Restructuring and Related Activities [Abstract] | |
Restructuring and related cost, number of positions eliminated, period percent | 9% |
Restructuring - Restructuring a
Restructuring - Restructuring and Related Costs (Details) $ in Thousands | 6 Months Ended |
Jul. 31, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance as of February 1, 2023 | $ 873 |
Charges (benefit) | (147) |
Payments | (707) |
Foreign currency translation adjustment | (19) |
Ending balance as of July 31, 2023 | $ 0 |