Cover page
Cover page - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2022 | Mar. 14, 2022 | Jul. 31, 2021 | |
Class of Stock [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --01-31 | ||
Document Period End Date | Jan. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 001-38553 | ||
Entity Registrant Name | DOMO, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 27-3687433 | ||
Entity Address, Address Line One | 772 East Utah Valley Drive | ||
Entity Address, City or Town | American Fork | ||
Entity Address, State or Province | UT | ||
Entity Address, Postal Zip Code | 84003 | ||
City Area Code | 801 | ||
Local Phone Number | 899-1000 | ||
Title of 12(b) Security | Class B Common Stock, par value $0.001 per share | ||
Trading Symbol | DOMO | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,500 | ||
Documents Incorporated by Reference [Text Block] | Portions of the registrant’s definitive proxy statement relating to its 2022 annual meeting of stockholders, or the 2022 Proxy Statement, are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. The 2022 Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates. | ||
Entity Central Index Key | 0001505952 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Class A Common Stock | |||
Class of Stock [Line Items] | |||
Entity Common Stock, Shares Outstanding | 3,263,659 | ||
Class B Common Stock | |||
Class of Stock [Line Items] | |||
Entity Common Stock, Shares Outstanding | 29,730,155 |
Audit Information
Audit Information | 12 Months Ended |
Jan. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Salt Lake City, Utah |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 83,561 | $ 90,794 |
Accounts receivable, net of allowances of $3,780 and $3,793 as of January 31, 2021 and January 31, 2022, respectively | 64,149 | 48,272 |
Contract acquisition costs, net | 15,417 | 13,894 |
Prepaid expenses and other current assets | 9,975 | 12,216 |
Total current assets | 173,102 | 165,176 |
Property and equipment, net | 17,584 | 14,745 |
Right-of-use assets | 16,392 | 3,663 |
Contract acquisition costs, noncurrent, net | 23,177 | 18,605 |
Intangible assets, net | 2,875 | 3,356 |
Goodwill | 9,478 | 9,478 |
Other assets | 1,981 | 1,415 |
Total assets | 244,589 | 216,438 |
Current liabilities: | ||
Accounts payable | 4,770 | 1,085 |
Accrued expenses and other current liabilities | 59,976 | 51,950 |
Lease liabilities | 3,439 | 3,808 |
Deferred revenue | 168,335 | 129,079 |
Total current liabilities | 236,520 | 185,922 |
Lease liabilities, noncurrent | 16,757 | 1,556 |
Deferred revenue, noncurrent | 2,420 | 3,173 |
Other liabilities, noncurrent | 10,882 | 9,637 |
Long-term debt | 103,988 | 99,609 |
Total liabilities | 370,567 | 299,897 |
Commitments and contingencies (Note 12) | ||
Stockholders' deficit: | ||
Preferred stock, $0.001 par value per share; 10,000 shares authorized as of January 31, 2021 and January 31, 2022; no shares issued and outstanding as of January 31, 2021 and January 31, 2022 | 0 | 0 |
Additional paid-in capital | 1,098,084 | 1,038,006 |
Accumulated other comprehensive income | 388 | 877 |
Accumulated deficit | (1,224,483) | (1,122,372) |
Total stockholders' deficit | (125,978) | (83,459) |
Total liabilities and stockholders' deficit | 244,589 | 216,438 |
Class A Common Stock | ||
Stockholders' deficit: | ||
Common stock | 3 | 3 |
Class B Common Stock | ||
Stockholders' deficit: | ||
Common stock | $ 30 | $ 27 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Accounts receivable allowance | $ 3,793 | $ 3,780 |
Preferred stock par value (in usd per share) | $ 0.001 | $ 0.001 |
Preferred stock authorized (shares) | 10,000,000 | 10,000,000 |
Preferred stock issued (shares) | 0 | 0 |
Preferred stock outstanding (shares) | 0 | 0 |
Class A Common Stock | ||
Common stock par value (usd per share) | $ 0.001 | $ 0.001 |
Common stock authorized (shares) | 3,264,000 | 3,264,000 |
Common stock issued (shares) | 3,264,000 | 3,264,000 |
Common stock outstanding (shares) | 3,264,000 | 3,264,000 |
Class B Common Stock | ||
Common stock par value (usd per share) | $ 0.001 | $ 0.001 |
Common stock authorized (shares) | 500,000,000 | 500,000,000 |
Common stock issued (shares) | 29,730,000 | 27,271,000 |
Common stock outstanding (shares) | 29,730,000 | 27,271,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Revenues [Abstract] | |||
Total revenue | $ 257,961 | $ 210,180 | $ 173,395 |
Cost of Revenue [Abstract] | |||
Total cost of revenue | 67,146 | 56,748 | 55,930 |
Gross profit | 190,815 | 153,432 | 117,465 |
Operating Expenses [Abstract] | |||
Sales and marketing | 143,722 | 117,335 | 127,567 |
Research and development | 81,027 | 66,474 | 69,224 |
General and administrative | 54,536 | 42,708 | 35,941 |
Total operating expenses | 279,285 | 226,517 | 232,732 |
Loss from operations | (88,470) | (73,085) | (115,267) |
Other expense, net | (14,102) | (11,140) | (9,635) |
Loss before income taxes | (102,572) | (84,225) | (124,902) |
Provision for (benefit from) income taxes | (461) | 409 | 754 |
Net loss | $ (102,111) | $ (84,634) | $ (125,656) |
Net loss per share, basic (in usd per share) | $ (3.19) | $ (2.89) | $ (4.57) |
Net loss per share, diluted (in usd per share) | $ (3.19) | $ (2.89) | $ (4.57) |
Weighted-average number of shares used in computing net loss per share, basic (shares) | 32,021 | 29,308 | 27,520 |
Weighted-average number of shares used in computing net loss per share, diluted (shares) | 32,021 | 29,308 | 27,520 |
Subscription | |||
Revenues [Abstract] | |||
Total revenue | $ 223,010 | $ 183,645 | $ 146,837 |
Cost of Revenue [Abstract] | |||
Total cost of revenue | 40,907 | 36,656 | 35,366 |
Professional services and other | |||
Revenues [Abstract] | |||
Total revenue | 34,951 | 26,535 | 26,558 |
Cost of Revenue [Abstract] | |||
Total cost of revenue | $ 26,239 | $ 20,092 | $ 20,564 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (102,111) | $ (84,634) | $ (125,656) |
Foreign currency translation adjustments | (489) | 490 | (51) |
Unrealized losses on securities available for sale | 0 | (2) | 2 |
Comprehensive loss | $ (102,600) | $ (84,146) | $ (125,705) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Class A Common Stock | Class B Common Stock | Common StockClass A Common Stock | Common StockClass B Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Accumulated Deficit |
Stockholders (deficit) equity, beginning balance (shares) at Jan. 31, 2019 | 3,263,659 | 23,434,542 | ||||||
Stockholders (deficit) equity, beginning balance at Jan. 31, 2019 | $ 44,527 | $ 3 | $ 23 | $ 956,145 | $ 438 | $ (912,082) | ||
Increase (Decrease) in Stockholders' Equity (Deficit) [Roll Forward] | ||||||||
Vesting of restricted stock units (shares) | 982,591 | |||||||
Vesting of restricted stock units | $ 0 | $ 0 | 0 | |||||
Exercise of stock options (shares) | 94,603 | 0 | 94,603 | |||||
Exercise of stock options | $ 1,600 | 1,600 | ||||||
Repurchase of common stock (shares) | (35,446) | |||||||
Repurchase of common stock | (1,428) | (1,428) | ||||||
Issuance of common stock under employee stock purchase plan (shares) | 506,278 | |||||||
Issuance of common stock under employee stock purchase plan | 7,812 | $ 2 | 7,810 | |||||
Stock-based compensation expense | 24,014 | 24,014 | ||||||
Exercise of common stock warrants (shares) | 3,130 | |||||||
Other comprehensive loss | (49) | (49) | ||||||
Net loss | (125,656) | $ (14,903) | $ (110,753) | (125,656) | ||||
Stockholders (deficit) equity, ending balance (shares) at Jan. 31, 2020 | 3,263,659 | 24,985,698 | ||||||
Stockholders (deficit) equity, ending balance at Jan. 31, 2020 | (49,180) | $ 3 | $ 25 | 988,141 | 389 | (1,037,738) | ||
Increase (Decrease) in Stockholders' Equity (Deficit) [Roll Forward] | ||||||||
Vesting of restricted stock units (shares) | 1,032,063 | |||||||
Vesting of restricted stock units | $ 0 | $ 0 | 0 | |||||
Exercise of stock options (shares) | 374,049 | 0 | 374,049 | |||||
Exercise of stock options | $ 8,092 | 8,092 | ||||||
Repurchase of common stock (shares) | (49,183) | |||||||
Repurchase of common stock | (1,745) | (1,745) | ||||||
Issuance of common stock under employee stock purchase plan (shares) | 860,300 | |||||||
Issuance of common stock under employee stock purchase plan | 6,748 | $ 2 | 6,746 | |||||
Stock-based compensation expense | 33,674 | 33,674 | ||||||
Exercise of common stock warrants (shares) | 68,508 | |||||||
Issuance of common stock warrants | 3,098 | 3,098 | ||||||
Other comprehensive loss | 488 | 488 | ||||||
Net loss | (84,634) | $ (9,426) | $ (75,208) | (84,634) | ||||
Stockholders (deficit) equity, ending balance (shares) at Jan. 31, 2021 | 3,264,000 | 27,271,000 | 3,263,659 | 27,271,435 | ||||
Stockholders (deficit) equity, ending balance at Jan. 31, 2021 | (83,459) | $ 3 | $ 27 | 1,038,006 | 877 | (1,122,372) | ||
Increase (Decrease) in Stockholders' Equity (Deficit) [Roll Forward] | ||||||||
Vesting of restricted stock units (shares) | 1,678,215 | |||||||
Vesting of restricted stock units | $ 3 | $ 3 | 0 | |||||
Exercise of stock options (shares) | 332,137 | 0 | 332,137 | |||||
Exercise of stock options | $ 5,621 | 5,621 | ||||||
Repurchase of common stock (shares) | (156,985) | |||||||
Repurchase of common stock | (10,315) | (10,315) | ||||||
Issuance of common stock under employee stock purchase plan (shares) | 505,020 | |||||||
Issuance of common stock under employee stock purchase plan | 4,133 | $ 0 | 4,133 | |||||
Stock-based compensation expense | 60,639 | 60,639 | ||||||
Exercise of common stock warrants (shares) | 100,000 | |||||||
Other comprehensive loss | (489) | (489) | ||||||
Net loss | (102,111) | $ (10,408) | $ (91,703) | (102,111) | ||||
Stockholders (deficit) equity, ending balance (shares) at Jan. 31, 2022 | 3,264,000 | 29,730,000 | 3,263,659 | 29,729,822 | ||||
Stockholders (deficit) equity, ending balance at Jan. 31, 2022 | $ (125,978) | $ 3 | $ 30 | $ 1,098,084 | $ 388 | $ (1,224,483) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Cash flows from operating activities | |||
Net loss | $ (102,111) | $ (84,634) | $ (125,656) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 5,363 | 4,765 | 6,917 |
Non-cash lease expense | 4,839 | 3,969 | 0 |
Amortization of contract acquisition costs | 15,835 | 14,376 | 11,777 |
Stock-based compensation expense | 60,526 | 33,749 | 23,847 |
Other, net | 3,618 | 4,340 | 1,959 |
Change in operating assets and liabilities: | |||
Accounts receivable, net | (15,877) | (305) | 454 |
Contract acquisition costs | (22,258) | (16,775) | (13,178) |
Prepaid expenses and other | 1,545 | 566 | (1,739) |
Accounts payable | 3,755 | (1,341) | (292) |
Operating lease liabilities | (3,065) | (3,685) | 0 |
Accrued expenses and other liabilities | 9,706 | 6,595 | (150) |
Deferred revenue | 38,503 | 22,508 | 15,842 |
Net cash (used in) provided by operating activities | 379 | (15,872) | (80,219) |
Cash flows from investing activities | |||
Purchases of property and equipment | (6,517) | (5,706) | (6,466) |
Purchases of securities available for sale | 0 | (11,149) | (102,084) |
Proceeds from maturities of securities available for sale | 0 | 29,200 | 84,800 |
Purchases of intangible assets | 0 | (105) | (65) |
Net cash (used in) provided by investing activities | (6,517) | 12,240 | (23,815) |
Cash flows from financing activities | |||
Proceeds from shares issued in connection with employee stock purchase plan | 4,133 | 6,748 | 7,812 |
Shares repurchased for tax withholdings on vesting of restricted stock | (10,315) | (1,745) | (1,428) |
Proceeds from exercise of stock options | 5,621 | 8,092 | 1,600 |
Net cash provided by (used in) financing activities | (561) | 13,095 | 7,984 |
Effect of exchange rate changes on cash and cash equivalents | (534) | 488 | (80) |
Net (decrease) increase in cash and cash equivalents | (7,233) | 9,951 | (96,130) |
Cash and cash equivalents at beginning of period | 90,794 | 80,843 | 176,973 |
Cash and cash equivalents at end of period | 83,561 | 90,794 | 80,843 |
Supplemental disclosures of cash flow information | |||
Cash paid for income taxes | 625 | 836 | 365 |
Cash paid for interest | 7,142 | 7,586 | 9,083 |
Non-cash investing and financing activities | |||
Operating lease right-of-use assets obtained for lease liabilities | 17,588 | 0 | 0 |
Property and equipment acquired through tenant improvement allowance | 387 | 0 | 0 |
Stock-based compensation capitalized as internal-use software | 1,226 | 583 | 480 |
Debt issuance costs in other liabilities, noncurrent | 0 | 3,395 | 0 |
Issuance of warrants in connection with credit facility | $ 0 | $ 3,098 | $ 0 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 12 Months Ended |
Jan. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview and Basis of Presentation | Overview and Basis of Presentation Description of Business and Basis of Presentation Domo, Inc. (the Company) provides a cloud-based platform that digitally connects everyone from the CEO to the frontline employee with all the data, systems and people in an organization, giving them access to real-time data and insights and allowing them to manage their business from their smartphones. The Company is incorporated in Delaware. The Company's headquarters is located in American Fork, Utah and the Company has subsidiaries in the United Kingdom, Australia, Japan, Hong Kong, Singapore, New Zealand, Canada, and India. The accompanying consolidated financial statements, which include the accounts of the Company and its wholly owned subsidiaries, have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). All intercompany balances and transactions have been eliminated in consolidation. The Company’s fiscal year ends on January 31. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes. The Company bases its estimates on historical experience and on other assumptions that its management believes are reasonable under the circumstances. Actual results could differ from those estimates. The Company’s estimates and judgments include the determination of standalone selling prices for the Company’s services, which are used to determine revenue recognition for arrangements with multiple performance obligations; the amortization period for deferred contract acquisition costs; valuation of the Company’s stock-based compensation; useful lives of fixed assets; capitalization and estimated useful life of internal-use software; the incremental borrowing rate used to calculate the present value of capitalized leases; valuation estimates used when evaluating impairment of long-lived and intangible assets including goodwill; and the allowance for doubtful accounts. Foreign Currency The functional currencies of the Company’s foreign subsidiaries are the respective local currencies. The cumulative effect of translation adjustments arising from the use of differing exchange rates from period to period is included in accumulated other comprehensive income within the consolidated balance sheets. Changes in the cumulative foreign translation adjustment are reported in the consolidated statements of stockholders’ equity (deficit) and the consolidated statements of comprehensive loss. Transactions denominated in currencies other than the functional currency are remeasured at the end of the period and when the related receivable or payable is settled, which may result in transaction gains or losses. Foreign currency transaction gains and losses are included in other expense, net in the consolidated statements of operations. All assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenue and expenses are translated at the average exchange rate during the period, and equity balances are translated using historical exchange rates. Segment Information The Company operates as one operating segment. The Company’s chief operating decision maker is its chief executive officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, money market funds and highly liquid investments purchased with an original maturity date of 90 days or less from the date of purchase. The fair value of cash equivalents approximated their carrying value as of January 31, 2021 and January 31, 2022. Accounts Receivable Accounts receivable are recorded at the invoiced amount (net of allowance), do not require collateral, and do not bear interest. The Company’s payment terms generally provide that customers pay within 30 days of the invoice date. The Company maintains an allowance for doubtful accounts and expected credit losses for amounts the Company does not expect to collect. In establishing the required allowance, management considers historical losses, current market conditions, customers’ financial condition and credit quality, the age of the receivables, and current payment patterns. Account balances are written off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Changes in the Company's allowance for doubtful accounts for the years ended January 31, 2020, 2021 and 2022 were as follows (in thousands): Balance as of January 31, 2019 $ 3,387 Additions 5,508 Write-offs (6,731) Balance as of January 31, 2020 2,164 Additions 7,362 Write-offs (5,746) Balance as of January 31, 2021 3,780 Additions 5,673 Write-offs (5,660) Balance as of January 31, 2022 $ 3,793 Contract Acquisition Costs Contract acquisition costs, net are stated at cost net of accumulated amortization and primarily consist of deferred sales commissions, which are considered incremental and recoverable costs of obtaining a contract with a customer. Contract acquisition costs for initial contracts are deferred and then amortized on a straight-line basis over the period of benefit, which the Company has determined to be approximately four years. The period of benefit is determined by taking into consideration contractual terms, expected customer life, changes in the Company's technology and other factors. Contract acquisition costs for renewal contracts are not commensurate with contract acquisition costs for initial contracts and are recorded as expense when incurred if the period of benefit is one year or less. If the period of benefit is greater than one year, costs are deferred and then amortized on a straight-line basis over the period of benefit, which the Company has determined to be two years. Contract acquisition costs related to professional services and other performance obligations with a period of benefit of one year or less are recorded as expense when incurred. Amortization of contract acquisition costs is included in sales and marketing expenses in the accompanying consolidated statements of operations. Amortization expense related to contract acquisition costs was $11.8 million, $14.4 million and $15.8 million for the years ended January 31, 2020, 2021 and 2022, respectively. There was no impairment charge in relation to contract acquisition costs for the periods presented. Property and Equipment, Net Property and equipment, net, are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets or over the related lease terms (if shorter). Repairs and maintenance costs are expensed as incurred. The estimated useful lives of property and equipment are as follows: Computer equipment and software 2-3 years Furniture, vehicles and office equipment 3 years Leasehold improvements Shorter of remaining lease term or estimated useful life Leases At the inception of a contract, the Company determines whether the contract is or contains a lease. Leases with a term greater than one year are recognized on the balance sheet as right-of-use (ROU) assets and lease liabilities. The Company has elected the short-term leases practical expedient which allows any leases with a term of 12 months or less to be considered short-term and thus not have an ROU asset or lease liability recognized on the balance sheet. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As these leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate is the rate incurred to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment. The operating lease ROU asset also includes any lease payments made in advance of lease expense and excludes lease incentives and initial direct costs incurred. Certain lease terms include options to terminate or extend the lease for periods of one The Company has lease agreements with lease and non-lease components which the Company has elected to account for as a single lease component. On the lease commencement date, the Company establishes assets and liabilities for the present value of estimated future costs to retire long-lived assets at the termination or expiration of a lease. Such assets are depreciated over the lease term to operating expense. Income from subleases is recorded in other expense, net in the accompanying consolidated statements of operations. Capitalized Internal-Use Software Costs The Company capitalizes certain costs related to development of its platform incurred during the application development stage. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. Maintenance and training costs are also expensed as incurred. Capitalized costs are included in property and equipment. Capitalized internal-use software is amortized generally as subscription cost of revenue, with a smaller portion related to operations amortized as research and development within operating expenses. All capitalized internal-use software is amortized on a straight-line basis over its estimated useful life, which is generally three years. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Goodwill and Intangible Assets Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill and indefinite-lived intangible assets are not amortized, but rather tested for impairment at least annually on November 1 or more often if and when circumstances indicate that the carrying value may not be recoverable. Finite-lived intangible assets are amortized over their useful lives. Goodwill is tested for impairment based on reporting units. The Company periodically reevaluates the business and has determined that it continues to operate in one segment, which is also considered the sole reporting unit. Therefore, goodwill is tested for impairment at the consolidated level. The Company reviews its long-lived assets, including property and equipment, finite-lived intangible assets, and ROU assets for impairment whenever an event or change in facts and circumstances indicates that their carrying amounts may not be recoverable. Recoverability of these assets is measured by comparing the carrying amount to the estimated undiscounted future cash flows expected to be generated. If the carrying amount exceeds the undiscounted cash flows, the assets are determined to be impaired and an impairment charge is recognized as the amount by which the carrying amount exceeds fair value. There was no goodwill acquired and no impairment charges for goodwill or long-lived assets recorded during the periods presented. Revenue Recognition The Company derives revenue primarily from subscriptions to its cloud-based platform and professional services. Revenue is recognized when control of these services is transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those services, net of sales taxes. For sales through channel partners, the Company considers the channel partner to be the end customer for the purposes of revenue recognition as the Company's contractual relationships with channel partners do not depend on the sale of the Company's services to their customers and payment from the channel partner is not contingent on receiving payment from their customers. The Company's contractual relationships with channel partners do not allow returns, rebates, or price concessions. The price of subscriptions is generally fixed at contract inception and therefore, the Company's contracts do not contain a significant amount of variable consideration. Revenue recognition is determined through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, performance obligations are satisfied Subscription Revenue Subscription revenue primarily consists of fees paid by customers to access the Company’s cloud-based platform, including support services. The majority of the Company's subscription agreements have multi-year contractual terms and a smaller percentage have annual contractual terms. Revenue is recognized ratably over the related contractual term beginning on the date that the platform is made available to a customer. Access to the platform represents a series of distinct services as the Company continually provides access to and fulfills its obligation to the end customer over the subscription term. The series of distinct services represents a single performance obligation that is satisfied over time. The Company recognizes revenue ratably because the customer receives and consumes the benefits of the platform throughout the contract period. The Company's contracts are generally non-cancelable. Professional Services and Other Revenue Professional services revenue consists of implementation services sold with new subscriptions as well as professional services sold separately. Other revenue includes training and education. Professional services arrangements are billed in advance, and revenue from these arrangements is recognized as the services are provided, generally based on hours incurred. Training and education revenue is also recognized as the services are provided. Contracts with Multiple Performance Obligations Most of the Company's contracts with new customers contain multiple performance obligations, generally consisting of subscriptions and professional services. For these contracts, individual performance obligations are accounted for separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Standalone selling prices are determined based on historical standalone selling prices, taking into consideration overall pricing objectives, market conditions and other factors, including contract value, customer demographics, platform tier, and the number and types of users within the contract. Deferred Revenue The Company's contracts are typically billed annually in advance. Deferred revenue includes amounts collected or billed in excess of revenue recognized. Deferred revenue is recognized as revenue as the related performance obligations are satisfied. Deferred revenue that will be recognized during the succeeding twelve-month period is recorded as a current liability and the remaining portion is recorded as a noncurrent liability. Cost of Revenue Cost of subscription revenue consists primarily of third-party hosting services and data center capacity; employee-related costs directly associated with cloud infrastructure and customer support personnel, including salaries, benefits, bonuses and stock-based compensation; amortization expense associated with capitalized software development costs; depreciation expense associated with computer equipment and software; certain fees paid to various third parties for the use of their technology and services; and allocated overhead. Allocated overhead includes items such as information technology infrastructure, rent, and employee benefit costs. Cost of professional services and other revenue consists primarily of employee-related costs associated with these services, including stock-based compensation; third-party consultant fees; and allocated overhead. Advertising Costs Advertising costs are expensed as incurred. Advertising expense was $8.3 million, $12.0 million and $10.8 million for the years ended January 31, 2020, 2021 and 2022, respectively. Research and Development Research and development expenses consist primarily of employee-related costs for the design and development of the Company's platform, contractor costs to supplement staff levels, third-party web services, consulting services, and allocated overhead. Research and development expenses, other than software development costs qualifying for capitalization, are expensed as incurred. Stock-Based Compensation The Company has granted stock-based awards, consisting of stock options and restricted stock units, to its employees, certain consultants and certain members of its board of directors. The Company records stock-based compensation based on the grant date fair value of the awards, which include stock options and restricted stock units, and recognizes the fair value of those awards as expense using the straight-line method over the requisite service period of the award. For restricted stock units that contain performance conditions, the Company recognizes expense using the accelerated attribution method if it is probable the performance conditions will be met. The Company estimates the grant date fair value of stock options using the Black-Scholes option-pricing model. Stock-based compensation expense related to purchase rights issued under the 2018 Employee Stock Purchase Plan (ESPP) is based on the Black-Scholes option-pricing model fair value of the estimated number of awards as of the beginning of the offering period. Stock-based compensation expense is recognized using the straight-line method over the offering period. The determination of the grant date fair value of stock-based awards is affected by the estimated fair value of the Company's common stock as well as other assumptions and judgments, which are estimated as follows: • Fair Value Per Share of Common Stock . The Company determines the fair value of common stock as of each grant date using the market closing price of the Company's Class B common stock on the date of grant. • Expected Term . The expected term is determined using the simplified method, which is calculated as the midpoint of the option’s contractual term and vesting period. The Company uses this method due to limited stock option exercise history. For the ESPP, the expected term is the beginning of the offering period to the end of each purchase period. • Expected Volatility . Since a public market for the Company's common stock did not exist prior to the IPO and, therefore, the Company does not have sufficient trading history of its common stock, expected volatility is estimated based on the weighted average of the volatility of similar publicly held companies and the Company's common stock over a period equivalent to the expected term of the awards. • Risk-free Interest Rate . The risk-free interest rate is determined using U.S. Treasury rates with a similar term as the expected term of the option. • Expected Dividend Yield . The Company has never declared or paid any cash dividends and does not presently plan to pay cash dividends in the foreseeable future. Consequently, the Company uses an expected dividend yield of zero. Income Taxes The Company accounts for income taxes in accordance with the liability method of accounting for income taxes. Under this method, the Company recognizes a liability or asset for the deferred income tax consequences of all temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements that will result in taxable or deductible amounts in future years when the reported amounts of the assets and liabilities are recovered or settled. These deferred income tax assets or liabilities are measured using the enacted tax rates that will be in effect when the differences are expected to affect taxable income. Valuation allowances are provided when it is more-likely-than-not that some or all of the deferred income tax assets may not be realized. In assessing the need for a valuation allowance, the Company has considered its historical levels of income, expectations of future taxable income and ongoing tax planning strategies. Because of the uncertainty of the realization of its deferred tax assets, the Company has a full valuation allowance for domestic net deferred tax assets, including net operating loss carryforwards, and tax credits related primarily to research and development. Realization of its deferred tax assets is dependent primarily upon future U.S. taxable income. Tax positions are recognized in the consolidated financial statements when it is more-likely-than-not the position will be sustained upon examination by the tax authorities. The Company’s policy for recording interest and penalties related to income taxes, including uncertain tax positions, is to record such items as a component of the provision for income taxes. Concentrations of Credit Risk and Significant Customers Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, and accounts receivable. Cash denominated in currencies other than the United States dollar represented 14% and 20% of total cash and cash equivalents as of January 31, 2021 and January 31, 2022, respectively. The Company maintains its cash accounts with financial institutions where, at times, deposits exceed federal insured limits. The Company may invest its excess cash in money market funds, certificates of deposit, or in short-term investments consisting of highly-rated debt securities. No single customer accounted for more than 10% of revenue for the years ended January 31, 2020, 2021 and 2022 or more than 10% of accounts receivable as of January 31, 2021 and January 31, 2022. The Company is primarily dependent upon third parties in order to meet the uptime and performance requirements of its customers. Any disruption of or interference with the Company's use of these third parties would impact operations. 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 losses. Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period increased by common shares that could be issued upon conversion or exercise of other outstanding securities to the extent those additional common shares would be dilutive. The dilutive effect of potentially dilutive securities is reflected in diluted net loss per share by application of the treasury stock method. During periods when the Company is in a net loss position, basic net loss per share is the same as diluted net loss per share as the effects of potentially dilutive securities are anti-dilutive. Recent Accounting Pronouncements |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Jan. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents The amortized cost and estimated fair value of the Company’s cash and cash equivalents as of January 31, 2021 and January 31, 2022 were as follows (in thousands): January 31, 2021 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Cash $ 24,928 $ — $ — $ 24,928 Cash equivalents: Money market funds 50,725 — — 50,725 Certificates of deposit 15,141 — — 15,141 Total cash and cash equivalents $ 90,794 $ — $ — $ 90,794 January 31, 2022 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Cash $ 42,500 $ — $ — $ 42,500 Cash equivalents: Money market funds 25,878 — — 25,878 Certificates of deposit 15,183 — — 15,183 Total cash and cash equivalents $ 83,561 $ — $ — $ 83,561 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets Measured at Fair Value on a Recurring Basis Financial instruments recorded at fair value in the financial statements are categorized as follows: • Level 1: Observable inputs that reflect quoted prices for identical assets or liabilities in active markets. • Level 2: Observable inputs, other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3: Unobservable inputs reflecting management's assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. The following table summarizes the assets measured at fair value on a recurring basis as of January 31, 2021 and January 31, 2022 by level within the fair value hierarchy (in thousands): January 31, 2021 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 50,725 $ — $ — $ 50,725 Certificates of deposit — 15,141 — 15,141 Total cash equivalents $ 50,725 $ 15,141 $ — $ 65,866 January 31, 2022 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 25,878 $ — $ — $ 25,878 Certificates of deposit — 15,183 — 15,183 Total cash equivalents $ 25,878 $ 15,183 $ — $ 41,061 During the years ended January 31, 2021 and 2022, the Company had no transfers between levels of the fair value hierarchy of its assets and liabilities measured at fair value. Fair Value of Other Financial Instruments The carrying amounts of certain financial instruments, including cash held in banks, accounts receivable, accounts payable, accrued liabilities, and other liabilities approximate fair value due to their short-term maturities and are excluded from the fair value tables above. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jan. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, net consisted of the following (in thousands): As of January 31, 2021 2022 Capitalized internal-use software development costs $ 29,816 $ 37,088 Computer equipment and software 5,097 4,426 Leasehold improvements 1,373 2,129 Furniture, vehicles and office equipment 842 764 37,128 44,407 Less accumulated depreciation and amortization (22,383) (26,823) $ 14,745 $ 17,584 Depreciation and amortization expense related to property and equipment was $6.3 million, $4.0 million and $4.9 million for the years ended January 31, 2020, 2021 and 2022, respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Jan. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consisted of the following (in thousands): As of January 31, 2021 2022 Intellectual property excluding patents $ 2,458 $ 2,458 Software licenses 1,603 — Patents 950 950 5,011 3,408 Less accumulated amortization (1,655) (533) $ 3,356 $ 2,875 Amortization expense related to intangible assets was $0.6 million, $0.6 million and $0.5 million for the years ended January 31, 2020, 2021 and 2022, respectively. Intellectual property excluding patents is considered an indefinite-lived asset due to the fact that it is renewable in perpetuity. Software licenses are amortized over an estimated useful life of three years. The patents were acquired and are being amortized over a weighted-average remaining useful life of approximately 5.2 years. As of January 31, 2022, future amortization expense for definite-lived intangible assets is estimated to be as follows (in thousands): Year Ending January 31, 2023 $ 80 2024 80 2025 80 2026 80 2027 75 Thereafter 22 $ 417 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Jan. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): As of January 31, 2021 2022 Accrued expenses $ 8,807 $ 13,436 Accrued bonus 9,073 13,064 Accrued payroll and benefits 8,513 11,494 Accrued commissions 7,488 8,119 Accrued payroll taxes 12,213 7,798 Employee stock purchase plan 3,384 3,840 Sales and other taxes payable 840 518 Other accrued liabilities 1,632 1,707 $ 51,950 $ 59,976 |
Leases
Leases | 12 Months Ended |
Jan. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company leases office space under non-cancelable operating leases with various expiration dates through 2027. These leases require monthly lease payments that may be subject to annual increases throughout the lease term. Components of lease expense are summarized as follows (in thousands): Year Ended January 31, 2020 2021 2022 Operating lease expense $ 7,277 $ 5,748 $ 6,451 Short-term lease expense — 2,266 1,263 Total lease expense $ 7,277 $ 8,014 $ 7,714 Lease term and discount rate information are summarized as follows: As of January 31, 2022 Weighted average remaining lease term (years) 4.7 Weighted average discount rate 10.0% As of January 31, 2022, the maturities of lease liabilities, net of lease incentives, were as follows (in thousands): Year Ending January 31: 2023 (1) $ 3,274 2024 5,470 2025 5,039 2026 5,207 2027 5,348 Thereafter 1,797 Total lease payments 26,135 Less imputed interest (5,939) Present value of lease liabilities $ 20,196 (1) Net of $2.8 million of tenant improvements which are expected to be utilized in fiscal 2023 Cash paid for operating leases was $4.8 million and $5.2 million during the years ended January 31, 2021 and 2022, respectively, and was included in net cash used in operating activities in the consolidated statements of cash flows. In November 2020, the Company entered into an agreement to lease office space from its current landlord. The lease term commenced on May 1, 2021 and is for a period of approximately six years, with rent payments over the term of the lease totaling approximately $23.8 million. At the lease commencement date, the Company classified the lease as an operating lease and recorded a lease liability of $13.6 million with a corresponding right-of-use asset. |
Deferred Revenue and Performanc
Deferred Revenue and Performance Obligations | 12 Months Ended |
Jan. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue and Performance Obligations | Deferred Revenue and Performance Obligations Deferred Revenue Significant changes in the Company's deferred revenue balance for the years ended January 31, 2020, 2021 and 2022 were as follows (in thousands): Balance as of January 31, 2019 $ 93,902 Revenue recognized that was included in the deferred revenue balance at the beginning of the period (88,693) Increase due to billings excluding amounts recognized as revenue during the period 104,535 Balance as of January 31, 2020 109,744 Revenue recognized that was included in the deferred revenue balance at the beginning of the period (106,070) Increase due to billings excluding amounts recognized as revenue during the period 128,578 Balance as of January 31, 2021 132,252 Revenue recognized that was included in the deferred revenue balance at the beginning of the period (129,207) Increase due to billings excluding amounts recognized as revenue during the period 167,710 Balance as of January 31, 2022 $ 170,755 Transaction Price Allocated to Remaining Performance Obligations Transaction price allocated to remaining performance obligations represents the remaining amount of revenue the Company expects to recognize from existing non-cancelable contracts, whether billed or unbilled. As of January 31, 2022, approximately $314.4 million of revenue was expected to be recognized from remaining performance obligations for subscription contracts. The Company expects to recognize approximately $201.0 million of this amount during the twelve months following January 31, 2022, with the balance recognized thereafter. As of January 31, 2022, approximately $24.6 million of revenue was expected to be recognized from remaining performance obligations for professional services and other contracts, $20.7 million of which is expected to be recognized during the twelve months following January 31, 2022, and the balance recognized thereafter. Revenue by geographic area is determined by the billing address of the customer. The following table sets forth revenue by geographic area (in thousands): Year Ended January 31, 2020 2021 2022 United States $ 130,044 $ 159,462 $ 198,040 Japan 17,334 22,157 25,046 Other 26,017 28,561 34,875 Total $ 173,395 $ 210,180 $ 257,961 Percentage of revenue by geographic area: United States 75 % 76 % 77 % Japan 10 % 11 % 10 % Other 15 % 13 % 13 % Other than the United States and Japan, no other individual country exceeded 10% of total revenue for the years ended January 31, 2020, 2021 and 2022. As of January 31, 2022, substantially all of the Company’s property and equipment was located in the United States. |
Geographic Information
Geographic Information | 12 Months Ended |
Jan. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Geographic Information | Deferred Revenue and Performance Obligations Deferred Revenue Significant changes in the Company's deferred revenue balance for the years ended January 31, 2020, 2021 and 2022 were as follows (in thousands): Balance as of January 31, 2019 $ 93,902 Revenue recognized that was included in the deferred revenue balance at the beginning of the period (88,693) Increase due to billings excluding amounts recognized as revenue during the period 104,535 Balance as of January 31, 2020 109,744 Revenue recognized that was included in the deferred revenue balance at the beginning of the period (106,070) Increase due to billings excluding amounts recognized as revenue during the period 128,578 Balance as of January 31, 2021 132,252 Revenue recognized that was included in the deferred revenue balance at the beginning of the period (129,207) Increase due to billings excluding amounts recognized as revenue during the period 167,710 Balance as of January 31, 2022 $ 170,755 Transaction Price Allocated to Remaining Performance Obligations Transaction price allocated to remaining performance obligations represents the remaining amount of revenue the Company expects to recognize from existing non-cancelable contracts, whether billed or unbilled. As of January 31, 2022, approximately $314.4 million of revenue was expected to be recognized from remaining performance obligations for subscription contracts. The Company expects to recognize approximately $201.0 million of this amount during the twelve months following January 31, 2022, with the balance recognized thereafter. As of January 31, 2022, approximately $24.6 million of revenue was expected to be recognized from remaining performance obligations for professional services and other contracts, $20.7 million of which is expected to be recognized during the twelve months following January 31, 2022, and the balance recognized thereafter. Revenue by geographic area is determined by the billing address of the customer. The following table sets forth revenue by geographic area (in thousands): Year Ended January 31, 2020 2021 2022 United States $ 130,044 $ 159,462 $ 198,040 Japan 17,334 22,157 25,046 Other 26,017 28,561 34,875 Total $ 173,395 $ 210,180 $ 257,961 Percentage of revenue by geographic area: United States 75 % 76 % 77 % Japan 10 % 11 % 10 % Other 15 % 13 % 13 % Other than the United States and Japan, no other individual country exceeded 10% of total revenue for the years ended January 31, 2020, 2021 and 2022. As of January 31, 2022, substantially all of the Company’s property and equipment was located in the United States. |
Credit Facility
Credit Facility | 12 Months Ended |
Jan. 31, 2022 | |
Debt Disclosure [Abstract] | |
Credit Facility | Credit Facility The Company has a credit facility that permits up to $100.0 million in term loan borrowings, all of which had been drawn as of January 31, 2022. The credit facility is secured by substantially all of the Company's assets. In August 2020, the Company entered into an amendment to the credit facility which extended the maturity date for the outstanding loan from October 1, 2022 to April 1, 2025. Per the amendment, the Company is required to comply with a financial covenant requiring the Company to maintain a minimum balance of unrestricted cash and cash equivalents equal to $10.0 million until the Company’s six-month adjusted cash flow is greater than zero. The amendment also revised the maximum debt ratio financial covenant and included an amendment fee of $5.0 million, which accrues interest at a rate of 9.5% per year. The amendment fee, along with its accrued interest, is to be paid at the earlier of the payment date, maturity date, or the date the loan becomes payable. The credit facility requires interest-only payments until the maturity date. A portion of the interest that accrues on the outstanding principal of each term loan is payable in cash on a monthly basis, which portion accrues at a floating rate equal to the greater of (1) 7% and (2) three-month LIBOR plus 5.5% per year. In the event that LIBOR is unavailable, interest will accrue at a floating rate equal to the greater of (1) 7% and (2) the U.S. prime rate plus 2.75% per year. This interest rate was approximately 7% as of January 31, 2022. In addition, a portion of the interest that accrues on the outstanding principal of each term loan is capitalized and added to the principal amount of the outstanding term loan on a monthly basis, which portion accrues at a fixed rate equal to 2.5% per year. During the years ended January 31, 2020, 2021 and 2022, $2.6 million, $2.7 million and $2.8 million of interest was capitalized, respectively. The credit facility requires a closing fee of $7.0 million to be paid on the earliest of (1) the date the term loan is prepaid, (2) the term loan maturity date, which is April 1, 2025, and (3) the date the term loan becomes due and payable. Due to the long-term nature of the closing fee, and the amendment fee described above, these fees were recorded at present value as an increase to other liabilities, noncurrent and an increase to debt issuance costs. These liabilities will be accreted to their full value over the term of the loan, with such accretion recorded as interest expense in other expense, net in the consolidated statements of operations. Debt issuance costs are presented as an offset to the outstanding principal balance of the term loans on the consolidated balance sheets and are being amortized as interest expense in other expense, net in the consolidated statements of operations over the term of the loan using the effective interest rate method. The balances in long-term debt consisted of the following (in thousands): As of January 31, 2021 2022 Principal $ 107,826 $ 110,599 Less: unamortized debt issuance costs (8,217) (6,611) Net carrying amount $ 99,609 $ 103,988 The $100.0 million credit facility contains customary conditions to borrowing, events of default and covenants, including covenants that restrict the Company's ability to dispose of assets, make material changes to the nature, control or location of the business, merge with or acquire other entities, incur indebtedness or encumbrances, make distributions to holders of the Company's capital stock, make certain investments or enter into transactions with affiliates. In addition, the Company is required to comply with a financial covenant based on the ratio of outstanding indebtedness to annualized recurring revenue. Under the facility, the maximum ratio is 0.600 on January 31, 2021 and April 30, 2021; 0.575 on July 31, 2021 and October 31, 2021; 0.550 on January 31, 2022 and April 30, 2022; 0.525 on July 31, 2022 and October 31, 2022; and 0.500 on January 31, 2023 through the maturity date. The credit facility defines annualized recurring revenue as four times the Company's aggregate revenue for the immediately preceding quarter (net of recurring discounts and discounts for periods greater than one year) less the annual contract value of any customer contracts pursuant to which the Company was advised during such quarter would not be renewed at the end of the current term plus the annual contract value of existing customer contract increases during such quarter. This covenant is measured quarterly on a three The Company incurred interest expense of $12.6 million, $12.6 million and $13.4 million for the years ended January 31, 2020, 2021 and 2022, respectively. Stock Warrants In connection with the credit facility described above, the Company issued warrants which are exercisable for an aggregate of 125,000 shares of Class B common stock at an exercise price of $17.8736 per share. These warrants were net exercised in September 2020, resulting in the issuance of 68,508 shares of Class B common stock. Upon execution of the August 2020 amendment, the Company issued an additional 100,000 fully vested warrants to purchase Class B common stock with an exercise price of $0.01. These warrants were exercised in May 2021, resulting in the issuance of 100,000 shares of Class B common stock. Warrants issued in connection with the credit facility were recorded as an increase to additional paid-in capital with a corresponding increase to debt issuance costs. See Note 13 "Stockholders' Equity (Deficit)" for further details regarding stock warrants. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. In November 2019, a securities class action complaint was filed by a purported stockholder of the Company against the Company, certain of the Company's current and former officers and directors, and the underwriters of the Company's June 2018 initial public offering alleging violations of securities laws and seeking unspecified damages. The Company believes this lawsuit is without merit and intends to defend the case vigorously. The Company believes a loss related to this matter is reasonably possible, but is unable to estimate a range of loss, if any, that could result were there to be an adverse final decision in this case. As of the date of this report, the Company does not believe it is probable that this case will result in an unfavorable outcome; however, if an unfavorable outcome were to occur in these cases, it is possible that the impact could be material to the Company's results of operations in the period(s) in which any such outcome becomes probable and estimable. The Company is involved in other legal proceedings from time to time arising in the normal course of business. Management believes that the outcome of these proceedings will not have a material impact on the Company’s financial condition, results of operations, or liquidity. Warranties and Indemnification The Company’s subscription services are generally warranted to perform materially in accordance with the terms of the applicable customer service order under normal use and circumstances. Additionally, the Company’s arrangements generally include provisions for indemnifying customers against liabilities if its subscription services infringe a third party’s intellectual property rights. Furthermore, the Company may also incur liabilities if it breaches the security or confidentiality obligations in its arrangements. To date, the Company has not incurred significant costs and has not accrued a liability in the accompanying consolidated financial statements as a result of these obligations. The Company has entered into service-level agreements with some of its customers defining levels of uptime reliability and performance and permitting those customers to receive credits for prepaid amounts related to unused subscription services if the Company fails to meet certain of the defined service levels. In very limited instances, the Company allows customers to early terminate their agreements if the Company repeatedly or significantly fails to meet those levels. If the Company repeatedly or significantly fails to meet contracted upon service levels, a contract may require a refund of prepaid unused subscription fees. To date, the Company has not experienced any significant failures to meet defined levels of uptime reliability and performance as set forth in its agreements and, as a result, the Company has not accrued any liabilities related to these agreements in the consolidated financial statements. Other Purchase Commitments The Company has also entered into certain non-cancelable contractual commitments related to cloud infrastructure services in the ordinary course of business. As of January 31, 2022, the Company had non-cancelable commitments related to these services of $34.7 million. |
Stockholders' Deficit
Stockholders' Deficit | 12 Months Ended |
Jan. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity (Deficit) | Stockholders' Deficit Preferred Stock The Company's Board of Directors has the authority, without further action by the Company's stockholders, to issue up to 10,000,000 shares of preferred stock in one or more series and to fix the rights, preferences, and privileges thereof, including voting rights. As of January 31, 2021 and January 31, 2022, no shares of preferred stock were issued and outstanding. Common Stock The Company has two classes of common stock, Class A and Class B. Each share of Class A common stock is entitled to 40 votes per share and is convertible at any time into one share of Class B common stock. Each share of Class A common stock will convert automatically into one share of Class B common stock upon any transfer, whether or not for value. Each share of Class B common stock is entitled to one vote per share. Holders of Class A common stock and Class B common stock vote together as a single class on all matters (including the election of directors) submitted to a vote of stockholders, unless otherwise required by law or the Company's certificate of incorporation. Subject to preferences that may be applicable to any then-outstanding preferred stock, holders of Class A common stock and Class B common stock are entitled to receive dividends, if any, as may be declared by the Company's board of directors. At January 31, 2021 and January 31, 2022, there were 3,263,659 shares of Class A common stock authorized. At January 31, 2021 and January 31, 2022, there were 3,263,659 shares of Class A common stock issued and outstanding. At January 31, 2021 and January 31, 2022, there were 500,000,000 shares of Class B common stock authorized. At January 31, 2021 and January 31, 2022, there were 27,271,435 and 29,729,822 shares of Class B common stock issued and outstanding, respectively. Class B Common Stock Warrants |
Equity Incentive Plans
Equity Incentive Plans | 12 Months Ended |
Jan. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Equity Incentive Plans | Equity Incentive Plans In April 2011, the Company established the 2011 Equity Incentive Plan (2011 Plan), which was amended in September 2011 to provide for the issuance of stock options and other stock-based awards. In June 2018, the Company adopted the 2018 Equity Incentive Plan (2018 Plan). The 2018 Plan provides for the grant of incentive and nonstatutory stock options, restricted stock, RSUs, stock appreciation rights, performance units, and performance shares to employees, consultants, and members of the Company's board of directors. The number of shares available for issuance under the 2018 Plan includes an annual increase on the first day of each fiscal year equal to the least of: (1) 3,500,000 shares; (2) 5% of the outstanding shares of Class A and Class B common stock as of the last day of the immediately preceding fiscal year; and (3) such other amount as the Company's board of directors may determine no later than the last day of the immediately preceding year. During the year ended January 31, 2022, the number of shares available for grant under the 2018 Plan was increased by 1,526,754 shares. As of January 31, 2022, there were 3,370,915 shares available for grant under the 2018 Plan. In connection with the IPO, the 2011 Plan was terminated. With the establishment of the 2018 Plan, the Company no longer grants equity-based awards under the 2011 Plan and any shares that expire, terminate, are forfeited or repurchased by the Company, or are withheld by the Company to cover tax withholding obligations, under the 2011 Plan, will become available for future grant under the 2018 Plan. The Company recognized stock-based compensation expense related to its equity incentive plans as follows (in thousands): Year Ended January 31, 2020 2021 2022 Cost of revenue: Subscription $ 507 $ 1,213 $ 2,819 Professional services and other 404 843 1,753 Sales and marketing 10,770 10,936 21,241 Research and development 6,339 9,095 15,853 General and administrative 5,637 11,218 18,155 Interest expense 190 444 705 Total $ 23,847 $ 33,749 $ 60,526 Stock Options Stock options typically vest over a four-year period and have a term of ten years from the date of grant. There were 25,000 stock options granted during the year ended January 31, 2020 and no stock options granted during the years ended January 31, 2021 and 2022. The weighted-average grant-date fair value of stock options granted was $14.95 per share for the year ended January 31, 2020. The grant-date fair value of stock options was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions: Year Ended January 31, 2020 2021 2022 Expected stock price volatility 47% — — Expected life of options 6 years — — Risk-free interest rate 2.47% — — Expected dividend yield — — — Fair value of common stock $31.20 — — The following table sets forth the outstanding common stock options and related activity for the years ended January 31, 2020, 2021 and 2022: Shares Weighted- Average Exercise Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding as of January 31, 2019 1,856,339 $ 23.64 5.6 $ 8,443 Granted 25,000 31.20 Exercised (94,603) 16.99 Forfeited (11,010) 28.24 Expired (30,311) 33.64 Outstanding as of January 31, 2020 1,745,415 23.91 4.6 5,152 Exercised (374,049) 21.64 Forfeited (2,112) 27.96 Expired (72,751) 37.53 Outstanding as of January 31, 2021 1,296,503 23.79 3.7 51,339 Exercised (332,137) 16.92 Forfeited (1,009) 28.20 Expired (69) 40.02 Outstanding as of January 31, 2022 963,288 $ 26.16 2.9 $ 20,166 Vested and exercisable at January 31, 2022 955,996 $ 26.12 2.8 $ 20,051 The aggregate intrinsic value of options exercised was $1.6 million, $10.8 million and $17.3 million for the years ended January 31, 2020, 2021 and 2022, respectively. The intrinsic value represents the excess of the estimated market closing price of the Company's common stock on the date of exercise over the exercise price of each option. The intrinsic value of options as of January 31, 2022 is based on the market closing price of the Company's Class B common stock on that date. As of January 31, 2022, there was $0.1 million of unrecognized stock-based compensation expense related to outstanding stock options which is expected to be recognized over a weighted-average period of 0.6 years. Restricted Stock Units Restricted stock units (RSUs) granted under the Plan vest and settle upon the satisfaction of a service-based condition. The service-based condition for these awards is generally satisfied over three one The following table sets forth the outstanding RSUs and related activity for the years ended January 31, 2020, 2021 and 2022: Number of Shares Weighted- Average Grant Date Fair Value Outstanding as of January 31, 2019 2,328,122 $ 19.77 Granted 1,113,913 28.82 Vested (982,591) 21.76 Canceled (282,639) 20.52 Outstanding as of January 31, 2020 2,176,805 23.40 Granted 3,209,165 25.94 Vested (1,028,734) 21.71 Canceled (499,075) 23.22 Outstanding as of January 31, 2021 3,858,161 25.97 Granted 2,540,946 77.98 Vested (1,681,544) 25.37 Canceled (378,944) 40.42 Outstanding as of January 31, 2022 4,338,619 $ 55.40 As of January 31, 2022, there was $208.5 million of unrecognized stock-based compensation expense related to outstanding RSUs which is expected to be recognized over a weighted-average period of 3.1 years. Employee Stock Purchase Plan In June 2018, the Company's board of directors adopted the ESPP. The number of shares of Class B common stock available for issuance under the ESPP increases on the first day of each fiscal year equal to the least of: (1) 1,050,000 shares of Class B common stock, (2) 1.5% of the outstanding shares of Class A and Class B common stock of the Company on the last day of the immediately preceding fiscal year, and (3) such other amount as the administrator of the ESPP may determine on or before the last day of the immediately preceding year. The administrator elected to forgo an increase in the number of shares available under the ESPP and no shares were added during the year ended January 31, 2022. As of January 31, 2022, there were 299 shares available under the ESPP. The ESPP generally provides for consecutive overlapping 24-month offering periods comprising four six-month purchase periods; provided, however, that the first purchase period in the first offering period will have a duration of approximately nine months. The offering periods are scheduled to start on the first trading day on or after April 1 and October 1 of each year. The ESPP is intended to qualify as a tax-qualified plan under Section 423 of the Internal Revenue Code and permits participants to elect to purchase shares of Class B common stock through payroll deductions of up to 15% of their eligible compensation. A participant may purchase a maximum of 2,000 shares during each purchase period. In September 2020, the ESPP was amended for all offering periods beginning on or after September 18, 2020. The amended ESPP provides for consecutive overlapping 12-month offering periods comprising two six-month purchase periods. The offering periods are scheduled to start on the first trading day on or after April 1 and October 1 of each year. The amended ESPP is intended to qualify as a tax-qualified plan under Section 423 of the Internal Revenue Code and permits participants to elect to purchase shares of Class B common stock through payroll deductions of up to 25% of their eligible compensation. Under the amended ESPP, a participant may purchase a maximum of 300 shares during each purchase period. Amounts deducted and accumulated by the participant will be used to purchase shares of Class B common stock at the end of each purchase period. The purchase price of the shares will be 85% of the lower of the fair market value of Class B common stock on the first trading day of each offering period or the fair market value of Class B common stock on the applicable exercise date. If the fair market value of a share of Class B common stock on the exercise date of an offering period is less than it was on the first trading day of that offering period, participants automatically will be withdrawn from that offering period following their purchase of shares on the exercise date and will be re-enrolled in a new offering period. Participants may end their participation at any time during an offering period and will be paid their accrued contributions that have not yet been used to purchase shares of Class B common stock. Participation ends automatically upon termination of employment. As of January 31, 2022, a total of approximately 165,266 shares were issuable to employees based on anticipated shares available and contribution elections made under the ESPP. As of January 31, 2022, total unrecognized stock-based compensation related to the ESPP was $1.6 million, which is expected to be recognized over a weighted-average period of 0.2 years. The fair value of the purchase rights for the ESPP are estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: Year Ended January 31, 2020 2021 2022 Expected stock price volatility 43% - 52% 49% - 83% 41% - 82% Expected term 0.5 - 2.0 years 0.5 - 2.0 years 0.5 - 1.0 year Risk-free interest rate 1.56% - 2.46% 0.11% - 0.23% .04% - .09% Expected dividend yield – – – |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of the income tax provision were as follows (in thousands): Year Ended January 31, 2020 2021 2022 Current income provision: State 27 32 5 Foreign 739 361 80 766 393 85 Deferred income tax provision: Foreign (12) 16 (546) Provision for (benefit from) income taxes $ 754 $ 409 $ (461) Total income tax expense differed from the amounts computed by applying the U.S. federal income tax rate to income before income tax expense as a result of the following (in thousands): Year Ended January 31, 2020 2021 2022 Tax benefit at U.S. federal statutory rate (1) $ (26,229) $ (17,687) $ (21,540) State income taxes, net of federal tax benefit (5,377) (4,689) (4,896) Non-deductible expenses 1,101 85 157 Foreign taxes 113 351 (752) Stock-based compensation 895 (4,263) (15,045) Research and development credits (2,529) (2,561) (2,579) Change in valuation allowance 32,708 29,160 44,287 Other 72 13 (93) Provision for (benefit from) income taxes $ 754 $ 409 $ (461) (1) The statutory tax rate used in this analysis was 21% for the years ended January 31, 2020, 2021 and 2022. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities were as follows (in thousands): As of January 31, 2021 2022 Deferred tax assets: Net operating loss carryforwards $ 278,118 $ 316,381 Stock based compensation 9,557 11,641 Accruals and other reserves 3,408 3,880 Research and development credit carryforwards 17,818 20,397 163(j) interest limitation 7,533 10,578 Foreign acquisition costs — 35 Lease liability 1,478 4,964 Other 1,983 1,624 Gross deferred tax assets 319,895 369,500 Valuation allowance (308,547) (352,834) Total deferred tax assets, net of valuation allowance 11,348 16,666 Deferred tax liabilities: Contract acquisition costs (7,653) (8,924) Capitalized software (3,268) (3,645) Right-of-use assets (1,044) (4,010) Basis difference in intangible assets (234) (313) Total deferred tax liabilities (12,199) (16,892) Net deferred tax liabilities $ (851) $ (226) In assessing whether deferred tax assets should be recog nized, the Company considered whether it is more-likely-than-not that some portion or all of the deferred tax assets would be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company considered the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. The Company determined it was more-likely-than-not that its domestic deferred tax assets would not be realized as of January 31, 2021 and 2022 and, accordingly, recorded a full valuation allowance. Net deferred tax liabilities are included in other liabilities, noncurrent on the consolidated balance sheets. As of January 31, 2022, the Company had federal and state NOLs available to offset future taxable income, if any, of $1,181.4 million and $1,334.9 million, respectively. The federal NOLs will begin to expire in 2028. The state NOLs will expire depending upon the various rules in the states in which the Company operates. Full realization of the NOLs is dependent on generating sufficient taxable income prior to their expiration. The ability to realize the NOLs and other deferred tax assets could also be limited by previous or future changes in ownership in accordance with rules in Internal Revenue Code Sections 382 and 383. As of January 31, 2022, the Company also had unused federal and state research and development tax credits of $20.6 million and $8.3 million, respectively. A small portion of the federal and state credits will expire depending upon the various rules in the states in which the Company operates. As of January 31, 2022, the Company also had foreign tax credits of $0.4 million which begin to expire in 2024. During the fiscal years ended years ended January 31, 2020, 2021 and 2022, the aggregate changes in the total gross amount of unrecognized tax benefits were as follows (in thousands): Year Ended January 31, 2020 2021 2022 Beginning balance $ 4,558 $ 5,430 $ 6,333 Increase in unrecognized tax benefits taken in prior years 906 939 914 Decrease in unrecognized tax benefits related to current year (34) (36) (11) $ 5,430 $ 6,333 $ 7,236 The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate is zero due to the valuation allowance. The Company does not expect a significant change in its unrecognized tax benefits over the next twelve months. The Company files U.S. federal, U.S. state, and foreign tax returns and is subject to examination by various taxing authorities for all open tax years. The Company is not currently under audit by the Internal Revenue Service or any other tax authority. The Company paid income taxes of $0.4 million, $0.8 million and $0.6 million during the years ended January 31, 2020, 2021 and 2022, respectively. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Jan. 31, 2022 | |
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 losses. The following table sets forth the calculation of basic and diluted net loss per share during the periods presented (in thousands, except per share amounts): Year Ended January 31, 2020 2021 2022 Class A Class B Class A Class B Class A Class B Numerator: Net loss $ (14,903) $ (110,753) $ (9,426) $ (75,208) $ (10,408) $ (91,703) Denominator: Weighted-average number of shares used in computing net loss per share, basic and diluted 3,264 24,256 3,264 26,044 3,264 28,757 Net loss per share, basic and diluted $ (4.57) $ (4.57) $ (2.89) $ (2.89) $ (3.19) $ (3.19) Since the Company was in a loss position for all periods presented, basic net loss per share is the same as diluted net loss per share for all periods as the inclusion of all potential common shares outstanding would have been anti-dilutive. The weighted-average impact of potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive was as follows (in thousands): Year Ended January 31, 2020 2021 2022 Options to purchase common stock 297 498 751 Restricted stock units 1,096 1,830 2,193 Employee stock purchase program 192 1,037 353 Common stock warrants 42 85 45 1,627 3,450 3,342 |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Jan. 31, 2022 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit PlanThe Company has a defined contribution retirement savings plan qualified under Section 401(k) of the Internal Revenue Code (IRC), which is a pretax savings plan covering substantially all employees. Under the plan, employees may contribute up to 50% of their pretax salary, subject to certain IRC limitations. Employees are eligible to participate beginning on the first day of the month following their first 30 days of employment. The Company recorded expenses for contributions to its retirement savings plan of $3.2 million, $1.6 million and $3.9 million during the years ended January 31, 2020, 2021 and 2022, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jan. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn March 1, 2022, Joshua G. James stepped down as the Company’s chairman and chief executive officer. Mr. James provided advisory transition services to the Company from the date of his resignation until March 21, 2022. In connection with Mr. James’ resignation, the Company and Mr. James entered into a cooperation agreement, a separation and transition agreement and a registration rights agreement. As part of the cooperation agreement, Mr. James agreed to not replace or remove directors or to add directors to the Company's board of directors for a period of approximately twelve months.On March 15, 2022, the Company's board of directors approved paying out certain executive bonuses in the form of restricted stock units (RSUs) instead of cash. These RSUs vested on March 21, 2022, resulting in the issuance of approximately 90,000 shares of the Company's Class B common stock |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements, which include the accounts of the Company and its wholly owned subsidiaries, have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). All intercompany balances and transactions have been eliminated in consolidation. The Company’s fiscal year ends on January 31. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes. The Company bases its estimates on historical experience and on other assumptions that its management believes are reasonable under the circumstances. Actual results could differ from those estimates. The Company’s estimates and judgments include the determination of standalone selling prices for the Company’s services, which are used to determine revenue recognition for arrangements with multiple performance obligations; the amortization period for deferred contract acquisition costs; valuation of the Company’s stock-based compensation; useful lives of fixed assets; capitalization and estimated useful life of internal-use software; the incremental borrowing rate used to calculate the present value of capitalized leases; valuation estimates used when evaluating impairment of long-lived and intangible assets including goodwill; and the allowance for doubtful accounts. |
Foreign Currency | Foreign Currency The functional currencies of the Company’s foreign subsidiaries are the respective local currencies. The cumulative effect of translation adjustments arising from the use of differing exchange rates from period to period is included in accumulated other comprehensive income within the consolidated balance sheets. Changes in the cumulative foreign translation adjustment are reported in the consolidated statements of stockholders’ equity (deficit) and the consolidated statements of comprehensive loss. Transactions denominated in currencies other than the functional currency are remeasured at the end of the period and when the related receivable or payable is settled, which may result in transaction gains or losses. Foreign currency transaction gains and losses are included in other expense, net in the consolidated statements of operations. All assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenue and expenses are translated at the average exchange rate during the period, and equity balances are translated using historical exchange rates. |
Segment Information | Segment Information The Company operates as one operating segment. The Company’s chief operating decision maker is its chief executive officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, money market funds and highly liquid investments purchased with an original maturity date of 90 days or less from the date of purchase. The fair value of cash equivalents approximated their carrying value as of January 31, 2021 and January 31, 2022. |
Accounts Receivables | Accounts ReceivableAccounts receivable are recorded at the invoiced amount (net of allowance), do not require collateral, and do not bear interest. The Company’s payment terms generally provide that customers pay within 30 days of the invoice date. |
Allowance for Doubtful Accounts | The Company maintains an allowance for doubtful accounts and expected credit losses for amounts the Company does not expect to collect. In establishing the required allowance, management considers historical losses, current market conditions, customers’ financial condition and credit quality, the age of the receivables, and current payment patterns. Account balances are written off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. |
Contract Acquisition Costs, Revenue Recognition, Deferred Revenue and Cost of Revenue | Contract Acquisition Costs Contract acquisition costs, net are stated at cost net of accumulated amortization and primarily consist of deferred sales commissions, which are considered incremental and recoverable costs of obtaining a contract with a customer. Contract acquisition costs for initial contracts are deferred and then amortized on a straight-line basis over the period of benefit, which the Company has determined to be approximately four years. The period of benefit is determined by taking into consideration contractual terms, expected customer life, changes in the Company's technology and other factors. Contract acquisition costs for renewal contracts are not commensurate with contract acquisition costs for initial contracts and are recorded as expense when incurred if the period of benefit is one year or less. If the period of benefit is greater than one year, costs are deferred and then amortized on a straight-line basis over the period of benefit, which the Company has determined to be two years. Contract acquisition costs related to professional services and other performance obligations with a period of benefit of one year or less are recorded as expense when incurred. Amortization of contract acquisition costs is included in sales and marketing expenses in the accompanying consolidated statements of operations. Revenue Recognition The Company derives revenue primarily from subscriptions to its cloud-based platform and professional services. Revenue is recognized when control of these services is transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those services, net of sales taxes. For sales through channel partners, the Company considers the channel partner to be the end customer for the purposes of revenue recognition as the Company's contractual relationships with channel partners do not depend on the sale of the Company's services to their customers and payment from the channel partner is not contingent on receiving payment from their customers. The Company's contractual relationships with channel partners do not allow returns, rebates, or price concessions. The price of subscriptions is generally fixed at contract inception and therefore, the Company's contracts do not contain a significant amount of variable consideration. Revenue recognition is determined through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, performance obligations are satisfied Subscription Revenue Subscription revenue primarily consists of fees paid by customers to access the Company’s cloud-based platform, including support services. The majority of the Company's subscription agreements have multi-year contractual terms and a smaller percentage have annual contractual terms. Revenue is recognized ratably over the related contractual term beginning on the date that the platform is made available to a customer. Access to the platform represents a series of distinct services as the Company continually provides access to and fulfills its obligation to the end customer over the subscription term. The series of distinct services represents a single performance obligation that is satisfied over time. The Company recognizes revenue ratably because the customer receives and consumes the benefits of the platform throughout the contract period. The Company's contracts are generally non-cancelable. Professional Services and Other Revenue Professional services revenue consists of implementation services sold with new subscriptions as well as professional services sold separately. Other revenue includes training and education. Professional services arrangements are billed in advance, and revenue from these arrangements is recognized as the services are provided, generally based on hours incurred. Training and education revenue is also recognized as the services are provided. Contracts with Multiple Performance Obligations Most of the Company's contracts with new customers contain multiple performance obligations, generally consisting of subscriptions and professional services. For these contracts, individual performance obligations are accounted for separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Standalone selling prices are determined based on historical standalone selling prices, taking into consideration overall pricing objectives, market conditions and other factors, including contract value, customer demographics, platform tier, and the number and types of users within the contract. Deferred Revenue The Company's contracts are typically billed annually in advance. Deferred revenue includes amounts collected or billed in excess of revenue recognized. Deferred revenue is recognized as revenue as the related performance obligations are satisfied. Deferred revenue that will be recognized during the succeeding twelve-month period is recorded as a current liability and the remaining portion is recorded as a noncurrent liability. Cost of Revenue Cost of subscription revenue consists primarily of third-party hosting services and data center capacity; employee-related costs directly associated with cloud infrastructure and customer support personnel, including salaries, benefits, bonuses and stock-based compensation; amortization expense associated with capitalized software development costs; depreciation expense associated with computer equipment and software; certain fees paid to various third parties for the use of their technology and services; and allocated overhead. Allocated overhead includes items such as information technology infrastructure, rent, and employee benefit costs. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net, are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets or over the related lease terms (if shorter). Repairs and maintenance costs are expensed as incurred. The estimated useful lives of property and equipment are as follows: Computer equipment and software 2-3 years Furniture, vehicles and office equipment 3 years Leasehold improvements Shorter of remaining lease term or estimated useful life |
Leases | Leases At the inception of a contract, the Company determines whether the contract is or contains a lease. Leases with a term greater than one year are recognized on the balance sheet as right-of-use (ROU) assets and lease liabilities. The Company has elected the short-term leases practical expedient which allows any leases with a term of 12 months or less to be considered short-term and thus not have an ROU asset or lease liability recognized on the balance sheet. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As these leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate is the rate incurred to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment. The operating lease ROU asset also includes any lease payments made in advance of lease expense and excludes lease incentives and initial direct costs incurred. Certain lease terms include options to terminate or extend the lease for periods of one The Company has lease agreements with lease and non-lease components which the Company has elected to account for as a single lease component. On the lease commencement date, the Company establishes assets and liabilities for the present value of estimated future costs to retire long-lived assets at the termination or expiration of a lease. Such assets are depreciated over the lease term to operating expense. |
Capitalized Internal-Use Software Costs | Capitalized Internal-Use Software Costs The Company capitalizes certain costs related to development of its platform incurred during the application development stage. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. Maintenance and training costs are also expensed as incurred. Capitalized costs are included in property and equipment. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill and indefinite-lived intangible assets are not amortized, but rather tested for impairment at least annually on November 1 or more often if and when circumstances indicate that the carrying value may not be recoverable. Finite-lived intangible assets are amortized over their useful lives. Goodwill is tested for impairment based on reporting units. The Company periodically reevaluates the business and has determined that it continues to operate in one segment, which is also considered the sole reporting unit. Therefore, goodwill is tested for impairment at the consolidated level. The Company reviews its long-lived assets, including property and equipment, finite-lived intangible assets, and ROU assets for impairment whenever an event or change in facts and circumstances indicates that their carrying amounts may not be recoverable. Recoverability of these assets is measured by comparing the carrying amount to the estimated undiscounted future cash flows expected to be generated. If the carrying amount exceeds the undiscounted cash flows, the assets are determined to be impaired and an impairment charge is recognized as the amount by which the carrying amount exceeds fair value. |
Advertising Costs | Advertising CostsAdvertising costs are expensed as incurred. Advertising expense was $8.3 million, $12.0 million and $10.8 million for the years ended January 31, 2020, 2021 and 2022, respectively. |
Research and Development | Research and Development Research and development expenses consist primarily of employee-related costs for the design and development of the Company's platform, contractor costs to supplement staff levels, third-party web services, consulting services, and allocated overhead. Research and development expenses, other than software development costs qualifying for capitalization, are expensed as incurred. |
Stock-Based Compensation | Stock-Based Compensation The Company has granted stock-based awards, consisting of stock options and restricted stock units, to its employees, certain consultants and certain members of its board of directors. The Company records stock-based compensation based on the grant date fair value of the awards, which include stock options and restricted stock units, and recognizes the fair value of those awards as expense using the straight-line method over the requisite service period of the award. For restricted stock units that contain performance conditions, the Company recognizes expense using the accelerated attribution method if it is probable the performance conditions will be met. The Company estimates the grant date fair value of stock options using the Black-Scholes option-pricing model. Stock-based compensation expense related to purchase rights issued under the 2018 Employee Stock Purchase Plan (ESPP) is based on the Black-Scholes option-pricing model fair value of the estimated number of awards as of the beginning of the offering period. Stock-based compensation expense is recognized using the straight-line method over the offering period. The determination of the grant date fair value of stock-based awards is affected by the estimated fair value of the Company's common stock as well as other assumptions and judgments, which are estimated as follows: • Fair Value Per Share of Common Stock . The Company determines the fair value of common stock as of each grant date using the market closing price of the Company's Class B common stock on the date of grant. • Expected Term . The expected term is determined using the simplified method, which is calculated as the midpoint of the option’s contractual term and vesting period. The Company uses this method due to limited stock option exercise history. For the ESPP, the expected term is the beginning of the offering period to the end of each purchase period. • Expected Volatility . Since a public market for the Company's common stock did not exist prior to the IPO and, therefore, the Company does not have sufficient trading history of its common stock, expected volatility is estimated based on the weighted average of the volatility of similar publicly held companies and the Company's common stock over a period equivalent to the expected term of the awards. • Risk-free Interest Rate . The risk-free interest rate is determined using U.S. Treasury rates with a similar term as the expected term of the option. • Expected Dividend Yield |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with the liability method of accounting for income taxes. Under this method, the Company recognizes a liability or asset for the deferred income tax consequences of all temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements that will result in taxable or deductible amounts in future years when the reported amounts of the assets and liabilities are recovered or settled. These deferred income tax assets or liabilities are measured using the enacted tax rates that will be in effect when the differences are expected to affect taxable income. Valuation allowances are provided when it is more-likely-than-not that some or all of the deferred income tax assets may not be realized. In assessing the need for a valuation allowance, the Company has considered its historical levels of income, expectations of future taxable income and ongoing tax planning strategies. Because of the uncertainty of the realization of its deferred tax assets, the Company has a full valuation allowance for domestic net deferred tax assets, including net operating loss carryforwards, and tax credits related primarily to research and development. Realization of its deferred tax assets is dependent primarily upon future U.S. taxable income. Tax positions are recognized in the consolidated financial statements when it is more-likely-than-not the position will be sustained upon examination by the tax authorities. The Company’s policy for recording interest and penalties related to income taxes, including uncertain tax positions, is to record such items as a component of the provision for income taxes. |
Concentration of Credit Risk and Significant Customers | Concentrations of Credit Risk and Significant Customers Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, and accounts receivable. Cash denominated in currencies other than the United States dollar represented 14% and 20% of total cash and cash equivalents as of January 31, 2021 and January 31, 2022, respectively. |
Concentration of Significant Customers | The Company is primarily dependent upon third parties in order to meet the uptime and performance requirements of its customers. Any disruption of or interference with the Company's use of these third parties would impact operations. |
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 losses. Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period increased by common shares that could be issued upon conversion or exercise of other outstanding securities to the extent those additional common shares would be dilutive. The dilutive effect of potentially dilutive securities is reflected in diluted net loss per share by application of the treasury stock method. During periods when the Company is in a net loss position, basic net loss per share is the same as diluted net loss per share as the effects of potentially dilutive securities are anti-dilutive. |
Recently Adopted Accounting Pronouncements | Recent Accounting PronouncementsThere have been no recent accounting pronouncements issued which are expected to have a material effect on the Company's financial statements. Management continues to monitor and review recently issued accounting guidance upon issuance. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Changes in Company's Allowance for Doubtful Accounts | Changes in the Company's allowance for doubtful accounts for the years ended January 31, 2020, 2021 and 2022 were as follows (in thousands): Balance as of January 31, 2019 $ 3,387 Additions 5,508 Write-offs (6,731) Balance as of January 31, 2020 2,164 Additions 7,362 Write-offs (5,746) Balance as of January 31, 2021 3,780 Additions 5,673 Write-offs (5,660) Balance as of January 31, 2022 $ 3,793 |
Schedule of Estimated Useful Lives of Property, Plant and Equipment | The estimated useful lives of property and equipment are as follows: Computer equipment and software 2-3 years Furniture, vehicles and office equipment 3 years Leasehold improvements Shorter of remaining lease term or estimated useful life Property and equipment, net consisted of the following (in thousands): As of January 31, 2021 2022 Capitalized internal-use software development costs $ 29,816 $ 37,088 Computer equipment and software 5,097 4,426 Leasehold improvements 1,373 2,129 Furniture, vehicles and office equipment 842 764 37,128 44,407 Less accumulated depreciation and amortization (22,383) (26,823) $ 14,745 $ 17,584 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Amortized Cost, Unrealized Gain (Losses) nd Estimated Fair Values of Cash Equivalents and Short-term Investments | The amortized cost and estimated fair value of the Company’s cash and cash equivalents as of January 31, 2021 and January 31, 2022 were as follows (in thousands): January 31, 2021 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Cash $ 24,928 $ — $ — $ 24,928 Cash equivalents: Money market funds 50,725 — — 50,725 Certificates of deposit 15,141 — — 15,141 Total cash and cash equivalents $ 90,794 $ — $ — $ 90,794 January 31, 2022 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Cash $ 42,500 $ — $ — $ 42,500 Cash equivalents: Money market funds 25,878 — — 25,878 Certificates of deposit 15,183 — — 15,183 Total cash and cash equivalents $ 83,561 $ — $ — $ 83,561 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets Measured at Fair Value on Recurring Basis | The following table summarizes the assets measured at fair value on a recurring basis as of January 31, 2021 and January 31, 2022 by level within the fair value hierarchy (in thousands): January 31, 2021 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 50,725 $ — $ — $ 50,725 Certificates of deposit — 15,141 — 15,141 Total cash equivalents $ 50,725 $ 15,141 $ — $ 65,866 January 31, 2022 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 25,878 $ — $ — $ 25,878 Certificates of deposit — 15,183 — 15,183 Total cash equivalents $ 25,878 $ 15,183 $ — $ 41,061 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | The estimated useful lives of property and equipment are as follows: Computer equipment and software 2-3 years Furniture, vehicles and office equipment 3 years Leasehold improvements Shorter of remaining lease term or estimated useful life Property and equipment, net consisted of the following (in thousands): As of January 31, 2021 2022 Capitalized internal-use software development costs $ 29,816 $ 37,088 Computer equipment and software 5,097 4,426 Leasehold improvements 1,373 2,129 Furniture, vehicles and office equipment 842 764 37,128 44,407 Less accumulated depreciation and amortization (22,383) (26,823) $ 14,745 $ 17,584 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-lived Intangible Assets | Intangible assets consisted of the following (in thousands): As of January 31, 2021 2022 Intellectual property excluding patents $ 2,458 $ 2,458 Software licenses 1,603 — Patents 950 950 5,011 3,408 Less accumulated amortization (1,655) (533) $ 3,356 $ 2,875 |
Schedule of Indefinite-Lived Intangible Assets | Intangible assets consisted of the following (in thousands): As of January 31, 2021 2022 Intellectual property excluding patents $ 2,458 $ 2,458 Software licenses 1,603 — Patents 950 950 5,011 3,408 Less accumulated amortization (1,655) (533) $ 3,356 $ 2,875 |
Schedule of Future Amortization Expense | As of January 31, 2022, future amortization expense for definite-lived intangible assets is estimated to be as follows (in thousands): Year Ending January 31, 2023 $ 80 2024 80 2025 80 2026 80 2027 75 Thereafter 22 $ 417 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): As of January 31, 2021 2022 Accrued expenses $ 8,807 $ 13,436 Accrued bonus 9,073 13,064 Accrued payroll and benefits 8,513 11,494 Accrued commissions 7,488 8,119 Accrued payroll taxes 12,213 7,798 Employee stock purchase plan 3,384 3,840 Sales and other taxes payable 840 518 Other accrued liabilities 1,632 1,707 $ 51,950 $ 59,976 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Leases [Abstract] | |
Components of Lease Expense | Components of lease expense are summarized as follows (in thousands): Year Ended January 31, 2020 2021 2022 Operating lease expense $ 7,277 $ 5,748 $ 6,451 Short-term lease expense — 2,266 1,263 Total lease expense $ 7,277 $ 8,014 $ 7,714 Lease term and discount rate information are summarized as follows: As of January 31, 2022 Weighted average remaining lease term (years) 4.7 Weighted average discount rate 10.0% |
Maturities of Lease Liabilities | As of January 31, 2022, the maturities of lease liabilities, net of lease incentives, were as follows (in thousands): Year Ending January 31: 2023 (1) $ 3,274 2024 5,470 2025 5,039 2026 5,207 2027 5,348 Thereafter 1,797 Total lease payments 26,135 Less imputed interest (5,939) Present value of lease liabilities $ 20,196 (1) Net of $2.8 million of tenant improvements which are expected to be utilized in fiscal 2023 |
Deferred Revenue and Performa_2
Deferred Revenue and Performance Obligations (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Changes in Deferred Revenue Balance | Significant changes in the Company's deferred revenue balance for the years ended January 31, 2020, 2021 and 2022 were as follows (in thousands): Balance as of January 31, 2019 $ 93,902 Revenue recognized that was included in the deferred revenue balance at the beginning of the period (88,693) Increase due to billings excluding amounts recognized as revenue during the period 104,535 Balance as of January 31, 2020 109,744 Revenue recognized that was included in the deferred revenue balance at the beginning of the period (106,070) Increase due to billings excluding amounts recognized as revenue during the period 128,578 Balance as of January 31, 2021 132,252 Revenue recognized that was included in the deferred revenue balance at the beginning of the period (129,207) Increase due to billings excluding amounts recognized as revenue during the period 167,710 Balance as of January 31, 2022 $ 170,755 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue by Geographic Area | The following table sets forth revenue by geographic area (in thousands): Year Ended January 31, 2020 2021 2022 United States $ 130,044 $ 159,462 $ 198,040 Japan 17,334 22,157 25,046 Other 26,017 28,561 34,875 Total $ 173,395 $ 210,180 $ 257,961 Percentage of revenue by geographic area: United States 75 % 76 % 77 % Japan 10 % 11 % 10 % Other 15 % 13 % 13 % |
Credit Facility (Tables)
Credit Facility (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | The balances in long-term debt consisted of the following (in thousands): As of January 31, 2021 2022 Principal $ 107,826 $ 110,599 Less: unamortized debt issuance costs (8,217) (6,611) Net carrying amount $ 99,609 $ 103,988 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Recognized Stock-based Compensation Expense | The Company recognized stock-based compensation expense related to its equity incentive plans as follows (in thousands): Year Ended January 31, 2020 2021 2022 Cost of revenue: Subscription $ 507 $ 1,213 $ 2,819 Professional services and other 404 843 1,753 Sales and marketing 10,770 10,936 21,241 Research and development 6,339 9,095 15,853 General and administrative 5,637 11,218 18,155 Interest expense 190 444 705 Total $ 23,847 $ 33,749 $ 60,526 |
Schedule of Weighted-average Assumptions Used in Estimating Grant-date Fair Value of Options | The grant-date fair value of stock options was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions: Year Ended January 31, 2020 2021 2022 Expected stock price volatility 47% — — Expected life of options 6 years — — Risk-free interest rate 2.47% — — Expected dividend yield — — — Fair value of common stock $31.20 — — |
Schedule of Outstanding Stock Options and Related Activity | The following table sets forth the outstanding common stock options and related activity for the years ended January 31, 2020, 2021 and 2022: Shares Weighted- Average Exercise Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding as of January 31, 2019 1,856,339 $ 23.64 5.6 $ 8,443 Granted 25,000 31.20 Exercised (94,603) 16.99 Forfeited (11,010) 28.24 Expired (30,311) 33.64 Outstanding as of January 31, 2020 1,745,415 23.91 4.6 5,152 Exercised (374,049) 21.64 Forfeited (2,112) 27.96 Expired (72,751) 37.53 Outstanding as of January 31, 2021 1,296,503 23.79 3.7 51,339 Exercised (332,137) 16.92 Forfeited (1,009) 28.20 Expired (69) 40.02 Outstanding as of January 31, 2022 963,288 $ 26.16 2.9 $ 20,166 Vested and exercisable at January 31, 2022 955,996 $ 26.12 2.8 $ 20,051 |
Schedule of Outstanding RSUs and Related Activity | The following table sets forth the outstanding RSUs and related activity for the years ended January 31, 2020, 2021 and 2022: Number of Shares Weighted- Average Grant Date Fair Value Outstanding as of January 31, 2019 2,328,122 $ 19.77 Granted 1,113,913 28.82 Vested (982,591) 21.76 Canceled (282,639) 20.52 Outstanding as of January 31, 2020 2,176,805 23.40 Granted 3,209,165 25.94 Vested (1,028,734) 21.71 Canceled (499,075) 23.22 Outstanding as of January 31, 2021 3,858,161 25.97 Granted 2,540,946 77.98 Vested (1,681,544) 25.37 Canceled (378,944) 40.42 Outstanding as of January 31, 2022 4,338,619 $ 55.40 |
Schedule of Weighted-average Assumptions Used in Determining Grant-date Fair Value of ESPP Purchase Rights | The fair value of the purchase rights for the ESPP are estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: Year Ended January 31, 2020 2021 2022 Expected stock price volatility 43% - 52% 49% - 83% 41% - 82% Expected term 0.5 - 2.0 years 0.5 - 2.0 years 0.5 - 1.0 year Risk-free interest rate 1.56% - 2.46% 0.11% - 0.23% .04% - .09% Expected dividend yield – – – |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Provision | The components of the income tax provision were as follows (in thousands): Year Ended January 31, 2020 2021 2022 Current income provision: State 27 32 5 Foreign 739 361 80 766 393 85 Deferred income tax provision: Foreign (12) 16 (546) Provision for (benefit from) income taxes $ 754 $ 409 $ (461) |
Schedule of Effective Income Tax Rate Reconciliation | Total income tax expense differed from the amounts computed by applying the U.S. federal income tax rate to income before income tax expense as a result of the following (in thousands): Year Ended January 31, 2020 2021 2022 Tax benefit at U.S. federal statutory rate (1) $ (26,229) $ (17,687) $ (21,540) State income taxes, net of federal tax benefit (5,377) (4,689) (4,896) Non-deductible expenses 1,101 85 157 Foreign taxes 113 351 (752) Stock-based compensation 895 (4,263) (15,045) Research and development credits (2,529) (2,561) (2,579) Change in valuation allowance 32,708 29,160 44,287 Other 72 13 (93) Provision for (benefit from) income taxes $ 754 $ 409 $ (461) (1) The statutory tax rate used in this analysis was 21% for the years ended January 31, 2020, 2021 and 2022. |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities were as follows (in thousands): As of January 31, 2021 2022 Deferred tax assets: Net operating loss carryforwards $ 278,118 $ 316,381 Stock based compensation 9,557 11,641 Accruals and other reserves 3,408 3,880 Research and development credit carryforwards 17,818 20,397 163(j) interest limitation 7,533 10,578 Foreign acquisition costs — 35 Lease liability 1,478 4,964 Other 1,983 1,624 Gross deferred tax assets 319,895 369,500 Valuation allowance (308,547) (352,834) Total deferred tax assets, net of valuation allowance 11,348 16,666 Deferred tax liabilities: Contract acquisition costs (7,653) (8,924) Capitalized software (3,268) (3,645) Right-of-use assets (1,044) (4,010) Basis difference in intangible assets (234) (313) Total deferred tax liabilities (12,199) (16,892) Net deferred tax liabilities $ (851) $ (226) |
Summary of Aggregate Changes in Unrecognized Tax Benefits | During the fiscal years ended years ended January 31, 2020, 2021 and 2022, the aggregate changes in the total gross amount of unrecognized tax benefits were as follows (in thousands): Year Ended January 31, 2020 2021 2022 Beginning balance $ 4,558 $ 5,430 $ 6,333 Increase in unrecognized tax benefits taken in prior years 906 939 914 Decrease in unrecognized tax benefits related to current year (34) (36) (11) $ 5,430 $ 6,333 $ 7,236 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Net Loss Per Share | The following table sets forth the calculation of basic and diluted net loss per share during the periods presented (in thousands, except per share amounts): Year Ended January 31, 2020 2021 2022 Class A Class B Class A Class B Class A Class B Numerator: Net loss $ (14,903) $ (110,753) $ (9,426) $ (75,208) $ (10,408) $ (91,703) Denominator: Weighted-average number of shares used in computing net loss per share, basic and diluted 3,264 24,256 3,264 26,044 3,264 28,757 Net loss per share, basic and diluted $ (4.57) $ (4.57) $ (2.89) $ (2.89) $ (3.19) $ (3.19) |
Schedule of Antidilutive Securities Excluded from Computation of Net Loss Per Share | Since the Company was in a loss position for all periods presented, basic net loss per share is the same as diluted net loss per share for all periods as the inclusion of all potential common shares outstanding would have been anti-dilutive. The weighted-average impact of potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive was as follows (in thousands): Year Ended January 31, 2020 2021 2022 Options to purchase common stock 297 498 751 Restricted stock units 1,096 1,830 2,193 Employee stock purchase program 192 1,037 353 Common stock warrants 42 85 45 1,627 3,450 3,342 |
Overview and Basis of Present_2
Overview and Basis of Presentation (Details) | 12 Months Ended |
Jan. 31, 2022segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2021 | Jan. 31, 2022USD ($)segment | Jan. 31, 2021USD ($) | Jan. 31, 2020USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period for capitalized contract acquisition costs | 4 years | |||
Amortization of expense related to contract acquisition costs | $ 15,835,000 | $ 14,376,000 | $ 11,777,000 | |
Impairment charge in relation to contract acquisition costs | $ 0 | 0 | 0 | |
Number of operating segments | segment | 1 | |||
Goodwill acquired | $ 0 | 0 | 0 | |
Impairment charges for goodwill or long-lived assets | 0 | 0 | 0 | |
Advertising expense | $ 10,800,000 | $ 12,000,000 | $ 8,300,000 | |
Minimum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Lease renewal terms | 1 year | |||
Maximum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Lease renewal terms | 3 years | |||
Capitalized internal-use software development costs | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated useful life of intangible assets | 3 years | |||
Foreign Currency Cash Concentration Risk | Cash and Cash Equivalents | Currency other than United States dollar | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Concentration risk percentage | 14.00% | 20.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Changes in Company's Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 3,780 | $ 2,164 | $ 3,387 |
Additions | 5,673 | 7,362 | 5,508 |
Write-offs | (5,660) | (5,746) | (6,731) |
Ending balance | $ 3,793 | $ 3,780 | $ 2,164 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Property and Equipment (Details) | 12 Months Ended |
Jan. 31, 2022 | |
Computer equipment and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | 2 years |
Computer equipment and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | 3 years |
Furniture, vehicles and office equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | 3 years |
Cash and Cash Equivalents - Amo
Cash and Cash Equivalents - Amortized Cost, Unrealized Gain (Losses) and Estimated Fair Values (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents | $ 83,561 | $ 90,794 |
Cash | ||
Cash and Cash Equivalents [Line Items] | ||
Cash | 42,500 | 24,928 |
Money market funds | ||
Cash and Cash Equivalents [Line Items] | ||
Cash equivalents | 25,878 | 50,725 |
Certificates of deposit | ||
Cash and Cash Equivalents [Line Items] | ||
Cash equivalents | $ 15,183 | $ 15,141 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured at Fair Value on Recurring Basis (Details) - Recurring Basis - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | $ 41,061 | $ 65,866 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 25,878 | 50,725 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 15,183 | 15,141 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 0 | 0 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 25,878 | 50,725 |
Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 25,878 | 50,725 |
Money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 0 | 0 |
Money market funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 0 | 0 |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 15,183 | 15,141 |
Certificates of deposit | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 0 | 0 |
Certificates of deposit | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 15,183 | 15,141 |
Certificates of deposit | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | $ 0 | $ 0 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 44,407 | $ 37,128 | |
Less accumulated depreciation and amortization | (26,823) | (22,383) | |
Property and equipment, net | 17,584 | 14,745 | |
Depreciation, excluding exchange rate effect | 4,900 | 4,000 | $ 6,300 |
Software development costs capitalized | 7,300 | 5,500 | 6,500 |
Capitalized software development costs amortized | 4,300 | 3,000 | $ 3,700 |
Capitalized internal-use software development costs | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 37,088 | 29,816 | |
Computer equipment and software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 4,426 | 5,097 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 2,129 | 1,373 | |
Furniture, vehicles and office equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 764 | $ 842 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 3,408 | $ 5,011 |
Less accumulated amortization | (533) | (1,655) |
Intangible assets, net | 2,875 | 3,356 |
Intellectual property excluding patents | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intellectual property excluding patents and Software licenses | 2,458 | 2,458 |
Software licenses | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intellectual property excluding patents and Software licenses | 0 | 1,603 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Patents | $ 950 | $ 950 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 0.5 | $ 0.6 | $ 0.6 |
Software licenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-average amortization period | 3 years | ||
Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-average amortization period | 5 years 2 months 12 days |
Intangible Assets - Future Amor
Intangible Assets - Future Amortization Expense (Details) $ in Thousands | Jan. 31, 2022USD ($) |
Year Ending January 31, | |
2023 | $ 80 |
2024 | 80 |
2025 | 80 |
2026 | 80 |
2027 | 75 |
Thereafter | 22 |
Future amortization expense | $ 417 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Payables and Accruals [Abstract] | ||
Accrued payroll taxes | $ 7,798 | $ 12,213 |
Accrued bonus | 13,064 | 9,073 |
Accrued expenses | 13,436 | 8,807 |
Accrued payroll and benefits | 11,494 | 8,513 |
Accrued commissions | 8,119 | 7,488 |
Employee stock purchase plan | 3,840 | 3,384 |
Sales and other taxes payable | 518 | 840 |
Other accrued liabilities | 1,707 | 1,632 |
Accrued expenses and other current liabilities | $ 59,976 | $ 51,950 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Leases [Abstract] | |||
Operating lease expense | $ 6,451 | $ 5,748 | $ 7,277 |
Short-term lease expense | 1,263 | 2,266 | 0 |
Total lease expense | $ 7,714 | $ 8,014 | $ 7,277 |
Weighted average remaining lease term (years) | 4 years 8 months 12 days | ||
Weighted average discount rate | 10.00% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Jan. 31, 2022USD ($) |
Leases [Abstract] | |
2023 | $ 3,274 |
2024 | 5,470 |
2025 | 5,039 |
2026 | 5,207 |
2027 | 5,348 |
Thereafter | 1,797 |
Total lease payments | 26,135 |
Less imputed interest | (5,939) |
Present value of lease liabilities | 20,196 |
Tenant improvements to be utilized in fiscal 2022 | $ 2,800 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Nov. 30, 2020 | |
Leases [Abstract] | |||
Cash paid for operating lease liabilities | $ 5,200 | $ 4,800 | |
Lessee, Lease, Description [Line Items] | |||
Total rent payments over term of lease | 26,135 | ||
Operating lease liability | $ 20,196 | ||
Office Space Lease from Landlord | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 6 years | ||
Total rent payments over term of lease | $ 23,800 | ||
Operating lease liability | $ 13,600 |
Deferred Revenue and Performa_3
Deferred Revenue and Performance Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Contract with Customer, Liability, Increase (Decrease) [Roll Forward] | |||
Deferred revenue, beginning balance | $ 132,252 | $ 109,744 | $ 93,902 |
Revenue recognized that was included in the deferred revenue balance at the beginning of the period | (129,207) | (106,070) | (88,693) |
Increase due to billings excluding amounts recognized as revenue during the period | 167,710 | 128,578 | 104,535 |
Deferred revenue, ending balance | $ 170,755 | $ 132,252 | $ 109,744 |
Deferred Revenue and Performa_4
Deferred Revenue and Performance Obligations - Narrative (Details) $ in Millions | Jan. 31, 2022USD ($) |
Subscription | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized from remaining performance obligations | $ 314.4 |
Subscription | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-02-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized from remaining performance obligations | $ 201 |
Expected satisfaction period for remaining revenue performance obligations | 12 months |
Professional services and other | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized from remaining performance obligations | $ 24.6 |
Professional services and other | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-02-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized from remaining performance obligations | $ 20.7 |
Expected satisfaction period for remaining revenue performance obligations | 12 months |
Geographic Information - Revenu
Geographic Information - Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Concentration Risk [Line Items] | |||
Total revenue | $ 257,961 | $ 210,180 | $ 173,395 |
United States | |||
Concentration Risk [Line Items] | |||
Total revenue | $ 198,040 | $ 159,462 | $ 130,044 |
United States | Revenue | Geographic concentration | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 77.00% | 76.00% | 75.00% |
Japan | |||
Concentration Risk [Line Items] | |||
Total revenue | $ 25,046 | $ 22,157 | $ 17,334 |
Japan | Revenue | Geographic concentration | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.00% | 11.00% | 10.00% |
Other | |||
Concentration Risk [Line Items] | |||
Total revenue | $ 34,875 | $ 28,561 | $ 26,017 |
Other | Revenue | Geographic concentration | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 13.00% | 13.00% | 15.00% |
Credit Facility - Narrative (De
Credit Facility - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2020 | Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | Aug. 31, 2020 | |
Line of Credit Facility [Line Items] | |||||
Interest expense incurred | $ 13,400,000 | $ 12,600,000 | $ 12,600,000 | ||
Stock issued for warrants exercised (in shares) | 68,508 | ||||
Secured credit facility | Line of Credit | Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Borrowing capacity under credit facility | $ 100,000,000 | ||||
Minimum balance of unrestricted cash and cash equivalents | $ 10,000,000 | ||||
Amendment fee | $ 5,000,000 | ||||
Interest rate (percent) | 9.50% | ||||
Annualized recurring revenue as ratio of Company's aggregate revenue for preceding quarter | 4 | ||||
Discount periods netted from calculation of annualized revenue | 1 year | ||||
Covenant measurement period on a trailing basis | 3 months | ||||
Secured credit facility | Term loan | Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Minimum interest rate of portion of outstanding principal accruing interest at floating rate (percent) | 7.00% | ||||
Interest rate at period end (percent) | 7.00% | ||||
Interest rate of portion of outstanding principal accruing interest at fixed rate (percent) | 2.50% | ||||
Interest capitalized | $ 2,800,000 | $ 2,700,000 | $ 2,600,000 | ||
Required closing fee under line of credit | $ 7,000,000 | ||||
Secured credit facility | LIBOR | Term loan | Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Spread on variable rate (percent) | 5.50% | ||||
Secured credit facility | Prime Rate | Term loan | Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Spread on variable rate (percent) | 2.75% | ||||
Class B Common Stock Warrants | |||||
Line of Credit Facility [Line Items] | |||||
Exercise price of warrants (in usd per share) | $ 34.35 | $ 0.01 | |||
Class B Common Stock Warrants | Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Number of shares that can be purchased (shares) | 3,333 | 125,000 | 100,000 | ||
Exercise price of warrants (in usd per share) | $ 17.8736 | ||||
January 31, 2021 and April 30, 2021 | Secured credit facility | Line of Credit | Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Maximum ratio of outstanding debt to annualized recurring revenue | 0.600 | ||||
July 31, 2021 and October 21, 2021 | Secured credit facility | Line of Credit | Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Maximum ratio of outstanding debt to annualized recurring revenue | 0.575 | ||||
January 31, 2022 and April 30, 2022 | Secured credit facility | Line of Credit | Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Maximum ratio of outstanding debt to annualized recurring revenue | 0.550 | ||||
July 31, 2022 and October 31, 2022 | Secured credit facility | Line of Credit | Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Maximum ratio of outstanding debt to annualized recurring revenue | 0.525 | ||||
January 31, 2023 through maturity | Secured credit facility | Line of Credit | Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Maximum ratio of outstanding debt to annualized recurring revenue | 0.500 |
Credit Facility - Schedule of L
Credit Facility - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Debt Disclosure [Abstract] | ||
Principal | $ 110,599 | $ 107,826 |
Less: unamortized debt issuance costs | (6,611) | (8,217) |
Net carrying amount | $ 103,988 | $ 99,609 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | Jan. 31, 2022USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Non-cancelable commitments | $ 34.7 |
Stockholders' Deficit - Narrati
Stockholders' Deficit - Narrative (Details) | Jan. 31, 2022voteclass$ / sharesshares | Jan. 31, 2021$ / sharesshares | Aug. 31, 2020$ / sharesshares | Jan. 31, 2020shares | Jan. 31, 2019shares |
Class of Stock [Line Items] | |||||
Preferred stock authorized (shares) | 10,000,000 | 10,000,000 | |||
Preferred stock issued (shares) | 0 | 0 | |||
Preferred stock outstanding (shares) | 0 | 0 | |||
Number of classes of common stock | class | 2 | ||||
Class A Common Stock | |||||
Class of Stock [Line Items] | |||||
Number of votes each share is entitled to | vote | 40 | ||||
Shares to be issued upon conversion (shares) | 1 | ||||
Common stock authorized (shares) | 3,264,000 | 3,264,000 | |||
Common stock issued (shares) | 3,264,000 | 3,264,000 | |||
Common stock outstanding (shares) | 3,264,000 | 3,264,000 | |||
Class B Common Stock | |||||
Class of Stock [Line Items] | |||||
Number of votes each share is entitled to | vote | 1 | ||||
Common stock authorized (shares) | 500,000,000 | 500,000,000 | |||
Common stock issued (shares) | 29,730,000 | 27,271,000 | |||
Common stock outstanding (shares) | 29,730,000 | 27,271,000 | |||
Class B Common Stock Warrants | |||||
Class of Stock [Line Items] | |||||
Exercise price of warrants (in usd per share) | $ / shares | $ 34.35 | $ 0.01 | |||
Credit Facility | Class B Common Stock Warrants | |||||
Class of Stock [Line Items] | |||||
Number of shares that can be purchased (shares) | 3,333 | 125,000 | 100,000 | ||
Exercise price of warrants (in usd per share) | $ / shares | $ 17.8736 | ||||
Common Stock | Class A Common Stock | |||||
Class of Stock [Line Items] | |||||
Common stock authorized (shares) | 3,263,659 | 3,263,659 | |||
Common stock issued (shares) | 3,263,659 | 3,263,659 | |||
Common stock outstanding (shares) | 3,263,659 | 3,263,659 | 3,263,659 | 3,263,659 | |
Common Stock | Class B Common Stock | |||||
Class of Stock [Line Items] | |||||
Common stock authorized (shares) | 500,000,000 | 500,000,000 | |||
Common stock issued (shares) | 29,729,822 | 27,271,435 | |||
Common stock outstanding (shares) | 29,729,822 | 27,271,435 | 24,985,698 | 23,434,542 |
Equity Incentive Plans - Narrat
Equity Incentive Plans - Narrative (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | 32 Months Ended | |||
Sep. 30, 2020purchase_periodshares | Jun. 30, 2018purchase_periodshares | Jan. 31, 2022USD ($)shares | Jan. 31, 2021USD ($)shares | Jan. 31, 2020USD ($)$ / sharesshares | Jan. 31, 2021shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average grant-date fair value (in usd per share) | $ / shares | $ 14.95 | |||||
Options granted in period (shares) | 0 | 0 | 25,000 | |||
Intrinsic value of options exercised | $ | $ 17.3 | $ 10.8 | $ 1.6 | |||
Options to purchase common stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Term of award | ten | |||||
Compensation cost not yet recognized | $ | $ 0.1 | |||||
Recognition period for compensation cost not yet recognized | 7 months 6 days | |||||
Restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Recognition period for compensation cost not yet recognized | 3 years 1 month 6 days | |||||
Compensation cost not yet recognized | $ | $ 208.5 | |||||
2018 Equity Incentive Plan (2018 Plan) | Common Class A and Common Class B | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of outstanding shares (percent) | 5.00% | |||||
2018 Equity Incentive Plan (2018 Plan) | Class B Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Additional shares authorized (shares) | 1,526,754 | 3,500,000 | ||||
Common stock reserved for future issuance (shares) | 3,370,915 | |||||
Employee Stock Purchase Plan | ESPP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Recognition period for compensation cost not yet recognized | 2 months 12 days | |||||
Compensation cost not yet recognized | $ | $ 1.6 | |||||
Duration of overlapping offering periods | 12 months | 24 months | ||||
Number of purchase periods in each offering period | purchase_period | 2 | 4 | ||||
Duration of purchase periods | 6 months | 6 months | ||||
Duration of first purchase period in first offering period | 9 months | |||||
Share purchase price as percentage of fair value of common stock (percent) | 25.00% | 15.00% | ||||
Maximum annual contributions via payroll deductions (shares) | 300 | 2,000 | ||||
Percentage of eligible compensation (percent) | 85.00% | |||||
Number of shares available for grant (shares) | 165,266 | |||||
Employee Stock Purchase Plan | Common Class A and Common Class B | ESPP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of outstanding shares (percent) | 1.50% | |||||
Employee Stock Purchase Plan | Class B Common Stock | ESPP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Additional shares authorized (shares) | 1,050,000 | 0 | ||||
Common stock reserved for future issuance (shares) | 299 | |||||
Minimum | Restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Service condition satisfaction period | 3 years | |||||
Maximum | Restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Service condition satisfaction period | 4 years | |||||
Cliff vesting in one or two years and quarterly vesting afterwards | Minimum | Restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 1 year | |||||
Cliff vesting in one or two years and quarterly vesting afterwards | Maximum | Restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 2 years |
Equity Incentive Plans - Recogn
Equity Incentive Plans - Recognized Stock-based Compensation Expense (Details) - 2011 Equity Incentive Plan (the Plan) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 60,526 | $ 33,749 | $ 23,847 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 21,241 | 10,936 | 10,770 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 15,853 | 9,095 | 6,339 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 18,155 | 11,218 | 5,637 |
Interest expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 705 | 444 | 190 |
Subscription | Cost of revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 2,819 | 1,213 | 507 |
Professional services and other | Cost of revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 1,753 | $ 843 | $ 404 |
Equity Incentive Plans - Assump
Equity Incentive Plans - Assumptions Used to Calculate the Grant-date Fair Value (Details) - $ / shares | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected stock price volatility | 47.00% | ||
Expected term | 6 years | ||
Risk-free interest rate | 2.47% | ||
Expected dividend yield | 0.00% | ||
Fair value of common stock (in usd per share) | $ 31.20 | ||
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | ||
Minimum | ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected stock price volatility | 41.00% | 49.00% | 43.00% |
Expected term | 6 months | 6 months | |
Risk-free interest rate | 0.04% | 0.11% | 1.56% |
Maximum | ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected stock price volatility | 82.00% | 83.00% | 52.00% |
Expected term | 1 year | 2 years | 2 years |
Risk-free interest rate | 0.09% | 0.23% | 2.46% |
Equity Incentive Plans - Outsta
Equity Incentive Plans - Outstanding Common Stock Options and Related Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Shares Subject to Outstanding Options | ||||
Beginning balance of options outstanding (shares) | 1,296,503 | 1,745,415 | 1,856,339 | |
Granted (shares) | 0 | 0 | 25,000 | |
Exercised (shares) | (332,137) | (374,049) | (94,603) | |
Forfeited (shares) | (1,009) | (2,112) | (11,010) | |
Expired (shares) | (69) | (72,751) | (30,311) | |
Ending balance of options outstanding (shares) | 963,288 | 1,296,503 | 1,745,415 | 1,856,339 |
Options vested and exercisable, outstanding (shares) | 955,996 | |||
Weighted- Average Exercise Price per Share | ||||
Options outstanding, weighted average exercise price (in usd per share) | $ 23.79 | $ 23.91 | $ 23.64 | |
Options granted, weighted average exercise price (in usd per share) | 31.20 | |||
Options exercised, weighted average exercise price (in usd per share) | 16.92 | 21.64 | 16.99 | |
Options forfeited, weighted average exercise price (in usd per share) | 28.20 | 27.96 | 28.24 | |
Options expired, weighted average exercise price (in usd per share) | 40.02 | 37.53 | 33.64 | |
Options outstanding, weighted average exercise price (in usd per share) | 26.16 | $ 23.79 | $ 23.91 | $ 23.64 |
Options vested and exercisable, weighted average exercise price (in usd per share) | $ 26.12 | |||
Additional disclosures | ||||
Options outstanding, weighted average remaining contractual term | 2 years 10 months 24 days | 3 years 8 months 12 days | 4 years 7 months 6 days | 5 years 7 months 6 days |
Options vested and exercisable, weighted average remaining contractual term | 2 years 9 months 18 days | |||
Options outstanding, aggregate intrinsic value | $ 20,166 | $ 51,339 | $ 5,152 | $ 8,443 |
Options vested and exercisable, aggregate intrinsic value | $ 20,051 |
Equity Incentive Plans - Outs_2
Equity Incentive Plans - Outstanding RSUs and Related Activity (Details) - Restricted stock units - $ / shares | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Number of Shares | |||
Outstanding as of beginning of period (shares) | 3,858,161 | 2,176,805 | 2,328,122 |
Granted (shares) | 2,540,946 | 3,209,165 | 1,113,913 |
Vested (shares) | (1,681,544) | (1,028,734) | (982,591) |
Canceled (shares) | (378,944) | (499,075) | (282,639) |
Outstanding as of end of period (shares) | 4,338,619 | 3,858,161 | 2,176,805 |
Weighted- Average Grant Date Fair Value | |||
Outstanding as of begnning of period (in usd per share) | $ 25.97 | $ 23.40 | $ 19.77 |
Granted (in usd per share) | 77.98 | 25.94 | 28.82 |
Vested (in usd per share) | 25.37 | 21.71 | 21.76 |
Canceled (in usd per share) | 40.42 | 23.22 | 20.52 |
Outstanding as of end of period (in usd per share) | $ 55.40 | $ 25.97 | $ 23.40 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits that, if recognized, would impact the effective tax rate | $ 0 | ||
Income taxes paid | $ 625,000 | $ 836,000 | $ 365,000 |
Federal | |||
Income Tax Contingency [Line Items] | |||
NOLs available to offset future taxable income | 1,181,400,000 | ||
State | |||
Income Tax Contingency [Line Items] | |||
NOLs available to offset future taxable income | 1,334,900,000 | ||
Foreign | |||
Income Tax Contingency [Line Items] | |||
Tax credits available to offset future taxable income | 400,000 | ||
Research and Development Tax Credit | Federal | |||
Income Tax Contingency [Line Items] | |||
Tax credits available to offset future taxable income | 20,600,000 | ||
Research and Development Tax Credit | State | |||
Income Tax Contingency [Line Items] | |||
Tax credits available to offset future taxable income | $ 8,300,000 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Current income provision: | |||
State | $ 5 | $ 32 | $ 27 |
Foreign | 80 | 361 | 739 |
Current income provision | 85 | 393 | 766 |
Deferred income tax provision: | |||
Foreign | (546) | 16 | (12) |
Provision for income taxes | $ (461) | $ 409 | $ 754 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Tax benefit at U.S. federal statutory rate | $ (21,540) | $ (17,687) | $ (26,229) |
State income taxes, net of federal tax benefit | (4,896) | (4,689) | (5,377) |
Non-deductible expenses | 157 | 85 | 1,101 |
Foreign taxes | (752) | 351 | 113 |
Stock-based compensation | (15,045) | (4,263) | 895 |
Research and development credits | (2,579) | (2,561) | (2,529) |
Change in valuation allowance | 44,287 | 29,160 | 32,708 |
Other | (93) | 13 | 72 |
Provision for income taxes | $ (461) | $ 409 | $ 754 |
Statutory tax rate (percent) | 21.00% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 316,381 | $ 278,118 |
Stock based compensation | 11,641 | 9,557 |
Accruals and other reserves | 3,880 | 3,408 |
Research and development credit carryforwards | 20,397 | 17,818 |
163(j) interest limitation | 10,578 | 7,533 |
Foreign acquisition costs | 35 | 0 |
Lease liability | 4,964 | 1,478 |
Other | 1,624 | 1,983 |
Gross deferred tax assets | 369,500 | 319,895 |
Valuation allowance | (352,834) | (308,547) |
Total deferred tax assets, net of valuation allowance | 16,666 | 11,348 |
Deferred tax liabilities: | ||
Contract acquisition costs | (8,924) | (7,653) |
Capitalized software | (3,645) | (3,268) |
Right-of-use assets | (4,010) | (1,044) |
Basis difference in intangible assets | (313) | (234) |
Total deferred tax liabilities | (16,892) | (12,199) |
Net deferred tax liabilities | $ (226) | $ (851) |
Income Taxes - Aggregate Change
Income Taxes - Aggregate Changes in Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Beginning balance | $ 6,333 | $ 5,430 | $ 4,558 |
Increase in unrecognized tax benefits taken in prior years | 914 | 939 | 906 |
(Decrease) in unrecognized tax benefits related to current year | (11) | (36) | (34) |
Ending balance | $ 7,236 | $ 6,333 | $ 5,430 |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation of Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Net loss | $ (102,111) | $ (84,634) | $ (125,656) |
Weighted-average number of shares used in computing net loss per share, basic (shares) | 32,021 | 29,308 | 27,520 |
Weighted-average number of shares used in computing net loss per share, diluted (shares) | 32,021 | 29,308 | 27,520 |
Net loss per share, basic (in usd per share) | $ (3.19) | $ (2.89) | $ (4.57) |
Net loss per share, diluted (in usd per share) | $ (3.19) | $ (2.89) | $ (4.57) |
Class A Common Stock | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Net loss | $ (10,408) | $ (9,426) | $ (14,903) |
Weighted-average number of shares used in computing net loss per share, basic (shares) | 3,264 | 3,264 | 3,264 |
Weighted-average number of shares used in computing net loss per share, diluted (shares) | 3,264 | 3,264 | 3,264 |
Net loss per share, basic (in usd per share) | $ (3.19) | $ (2.89) | $ (4.57) |
Net loss per share, diluted (in usd per share) | $ (3.19) | $ (2.89) | $ (4.57) |
Class B Common Stock | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Net loss | $ (91,703) | $ (75,208) | $ (110,753) |
Weighted-average number of shares used in computing net loss per share, basic (shares) | 28,757 | 26,044 | 24,256 |
Weighted-average number of shares used in computing net loss per share, diluted (shares) | 28,757 | 26,044 | 24,256 |
Net loss per share, basic (in usd per share) | $ (3.19) | $ (2.89) | $ (4.57) |
Net loss per share, diluted (in usd per share) | $ (3.19) | $ (2.89) | $ (4.57) |
Net Loss Per Share - Antidiluti
Net Loss Per Share - Antidilutive Securities Excluded from Computation of Net Loss Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities that were not included in the diluted net loss per share calculations (shares) | 3,342 | 3,450 | 1,627 |
Options to purchase common stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities that were not included in the diluted net loss per share calculations (shares) | 751 | 498 | 297 |
Restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities that were not included in the diluted net loss per share calculations (shares) | 2,193 | 1,830 | 1,096 |
Employee stock purchase program | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities that were not included in the diluted net loss per share calculations (shares) | 353 | 1,037 | 192 |
Common stock warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities that were not included in the diluted net loss per share calculations (shares) | 45 | 85 | 42 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Postemployment Benefits [Abstract] | |||
Maximum employee contribution as percentage of pre-tax salary (percent) | 50.00% | ||
Employees' participation eligibility period | 30 days | ||
Company's contribution expenses | $ 3.9 | $ 1.6 | $ 3.2 |
Subsequent Events (Details)
Subsequent Events (Details) - Class B Common Stock - shares | Mar. 15, 2022 | Jan. 31, 2022 | Jan. 31, 2021 |
Subsequent Event [Line Items] | |||
Common stock issued (shares) | 29,730,000 | 27,271,000 | |
Subsequent event | |||
Subsequent Event [Line Items] | |||
Common stock issued (shares) | 90,000 |