Cover
Cover - shares | 9 Months Ended | |
Oct. 31, 2021 | Nov. 30, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-38933 | |
Entity Registrant Name | CROWDSTRIKE HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 45-3788918 | |
Entity Address, Address Line One | 150 Mathilda Place | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Sunnyvale | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94086 | |
City Area Code | 888 | |
Local Phone Number | 512-8906 | |
Title of 12(b) Security | Class A common stock, par value $0.0005 per share | |
Trading Symbol | CRWD | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001535527 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --01-31 | |
Class A common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 208,207,247 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 21,132,067 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 31, 2021 | Jan. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,907,508 | $ 1,918,608 |
Accounts receivable, net of allowance for credit losses of $1.3 million and $1.2 million as of October 31, 2021 and January 31, 2021, respectively | 283,272 | 239,199 |
Deferred contract acquisition costs, current | 108,636 | 80,850 |
Prepaid expenses and other current assets | 60,670 | 53,617 |
Total current assets | 2,360,086 | 2,292,274 |
Strategic investments | 22,665 | 2,500 |
Property and equipment, net | 242,224 | 167,014 |
Operating lease right-of-use assets | 33,893 | 36,484 |
Deferred contract acquisition costs, noncurrent | 162,309 | 117,906 |
Goodwill | 373,889 | 83,566 |
Intangible assets, net | 82,870 | 15,677 |
Other long-term assets | 21,681 | 17,112 |
Total assets | 3,299,617 | 2,732,533 |
Current liabilities: | ||
Accounts payable | 7,167 | 12,065 |
Accrued expenses | 76,758 | 51,117 |
Accrued payroll and benefits | 94,738 | 71,907 |
Operating lease liabilities, current | 9,706 | 8,977 |
Deferred revenue | 974,571 | 701,988 |
Other current liabilities | 78,607 | 17,499 |
Total current liabilities | 1,241,547 | 863,553 |
Long-term debt | 739,145 | 738,029 |
Deferred revenue, noncurrent | 313,625 | 209,907 |
Operating lease liabilities, noncurrent | 27,895 | 31,986 |
Other liabilities, noncurrent | 17,835 | 17,184 |
Total liabilities | 2,340,047 | 1,860,659 |
Commitments and contingencies (Note 10) | ||
Stockholders’ Equity | ||
Preferred stock, $0.0005 par value; 100,000 shares authorized as of October 31, 2021 and January 31, 2021; no shares issued and outstanding as of October 31, 2021 and January 31, 2021 | 0 | 0 |
Class A common stock, $0.0005 par value; 2,000,000 shares authorized as of October 31, 2021 and January 31, 2021; 208,121 shares and 195,039 shares issued and outstanding as of October 31, 2021 and January 31, 2021, respectively; Class B common stock, $0.0005 par value; 300,000 shares authorized as of October 31, 2021 and January 31, 2021; 21,176 shares and 28,685 shares issued and outstanding as of October 31, 2021 and January 31, 2021, respectively. | 115 | 112 |
Additional paid-in capital | 1,870,120 | 1,598,259 |
Accumulated deficit | (922,938) | (730,116) |
Accumulated other comprehensive income | 885 | 2,319 |
Total CrowdStrike Holdings, Inc. stockholders’ equity | 948,182 | 870,574 |
Non-controlling interest | 11,388 | 1,300 |
Total stockholders’ equity | 959,570 | 871,874 |
Total liabilities and stockholders’ equity | $ 3,299,617 | $ 2,732,533 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Oct. 31, 2021 | Jan. 31, 2021 |
Accounts receivable, allowance for doubtful accounts | $ 1.3 | $ 1.2 |
Preferred stock, par value (in usd per share) | $ 0.0005 | $ 0.0005 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Class A common stock | ||
Common stock, par value (in usd per share) | $ 0.0005 | $ 0.0005 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 208,121,000 | 195,039,000 |
Common stock, shares outstanding (in shares) | 208,121,000 | 195,039,000 |
Class B common stock | ||
Common stock, par value (in usd per share) | $ 0.0005 | $ 0.0005 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 21,176,000 | 28,685,000 |
Common stock, shares outstanding (in shares) | 21,176,000 | 28,685,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Revenue | ||||
Total revenue | $ 380,051 | $ 232,460 | $ 1,020,584 | $ 609,509 |
Cost of revenue | ||||
Total cost of revenue | 101,664 | 61,527 | 270,601 | 162,813 |
Gross profit | 278,387 | 170,933 | 749,983 | 446,696 |
Operating expenses | ||||
Sales and marketing | 164,960 | 105,602 | 453,952 | 288,867 |
Research and development | 97,630 | 57,539 | 266,265 | 148,600 |
General and administrative | 56,061 | 31,951 | 148,780 | 85,955 |
Total operating expenses | 318,651 | 195,092 | 868,997 | 523,422 |
Loss from operations | (40,264) | (24,159) | (119,014) | (76,726) |
Interest expense | (6,403) | (193) | (18,929) | (510) |
Other income, net | 690 | 272 | 6,077 | 5,537 |
Loss before provision for income taxes | (45,977) | (24,080) | (131,866) | (71,699) |
Provision for income taxes | 4,473 | 451 | 58,773 | 1,928 |
Net loss | (50,450) | (24,531) | (190,639) | (73,627) |
Net income attributable to noncontrolling interest | 5 | 0 | 2,183 | 0 |
Net loss attributable to CrowdStrike | $ (50,455) | $ (24,531) | $ (192,822) | $ (73,627) |
Net loss per share attributable to Crowdstrike common stockholders, basic (in dollars per share) | $ (0.22) | $ (0.11) | $ (0.85) | $ (0.34) |
Net loss per share attributable to Crowdstrike common stockholders, diluted (in dollars per share) | $ (0.22) | $ (0.11) | $ (0.85) | $ (0.34) |
Weighted-average shares used in computing net loss per share attributable to Crowdstrike common stockholders, basic (in shares) | 228,293 | 219,401 | 226,292 | 216,432 |
Weighted-average shares used in computing net loss per share attributable to Crowdstrike common stockholders, diluted (in shares) | 228,293 | 219,401 | 226,292 | 216,432 |
Subscription | ||||
Revenue | ||||
Total revenue | $ 357,030 | $ 213,530 | $ 954,094 | $ 560,008 |
Cost of revenue | ||||
Total cost of revenue | 85,464 | 49,583 | 226,360 | 130,864 |
Professional services | ||||
Revenue | ||||
Total revenue | 23,021 | 18,930 | 66,490 | 49,501 |
Cost of revenue | ||||
Total cost of revenue | $ 16,200 | $ 11,944 | $ 44,241 | $ 31,949 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (50,450) | $ (24,531) | $ (190,639) | $ (73,627) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (665) | (500) | (1,434) | 926 |
Reversal of unrealized gain upon sale of debt securities, net of tax | 0 | 0 | 0 | (1,320) |
Other comprehensive loss | (665) | (500) | (1,434) | (394) |
Less: Comprehensive income attributable to noncontrolling interest | 5 | 0 | 2,183 | 0 |
Total comprehensive loss attributable to CrowdStrike | $ (51,120) | $ (25,031) | $ (194,256) | $ (74,021) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Non-controlling Interest |
Beginning balance (in shares) at Jan. 31, 2020 | 212,948 | |||||
Beginning balance at Jan. 31, 2020 | $ 742,607 | $ 106 | $ 1,378,479 | $ (637,487) | $ 1,009 | $ 500 |
Stockholders' Deficit | ||||||
Issuance of common stock upon exercise of options (in shares) | 5,966 | |||||
Issuance of common stock upon exercise of options | 21,522 | $ 5 | 21,517 | |||
Issuance of common stock under RSU release (in shares) | 1,475 | |||||
Issuance of common stock under employee stock purchase plan (in shares) | 565 | |||||
Issuance of common stock under employee stock purchase plan | 17,284 | 17,284 | ||||
Vesting of early exercised stock options | 2,521 | 2,521 | ||||
Stock-based compensation expense | 101,883 | 101,883 | ||||
Capitalized stock-based compensation | 1,876 | 1,876 | ||||
Fair value of replacement equity awards attributable to pre-acquisition service | 313 | 313 | ||||
Net income (loss) | (73,627) | (73,627) | ||||
Non-controlling interest | 800 | 800 | ||||
Other comprehensive loss | (394) | (394) | ||||
Ending balance (in shares) at Oct. 31, 2020 | 220,954 | |||||
Ending balance at Oct. 31, 2020 | 814,785 | $ 111 | 1,523,873 | (711,114) | 615 | 1,300 |
Beginning balance (in shares) at Jul. 31, 2020 | 219,194 | |||||
Beginning balance at Jul. 31, 2020 | 792,015 | $ 110 | 1,476,323 | (686,583) | 1,115 | 1,050 |
Stockholders' Deficit | ||||||
Issuance of common stock upon exercise of options (in shares) | 1,277 | |||||
Issuance of common stock upon exercise of options | 4,921 | $ 1 | 4,920 | |||
Issuance of common stock under RSU release (in shares) | 483 | |||||
Vesting of early exercised stock options | 799 | 799 | ||||
Stock-based compensation expense | 40,532 | 40,532 | ||||
Capitalized stock-based compensation | 986 | 986 | ||||
Fair value of replacement equity awards attributable to pre-acquisition service | 313 | 313 | ||||
Net income (loss) | (24,531) | (24,531) | ||||
Non-controlling interest | 250 | 250 | ||||
Other comprehensive loss | (500) | (500) | ||||
Ending balance (in shares) at Oct. 31, 2020 | 220,954 | |||||
Ending balance at Oct. 31, 2020 | 814,785 | $ 111 | 1,523,873 | (711,114) | 615 | 1,300 |
Beginning balance (in shares) at Jan. 31, 2021 | 223,724 | |||||
Beginning balance at Jan. 31, 2021 | $ 871,874 | $ 112 | 1,598,259 | (730,116) | 2,319 | 1,300 |
Stockholders' Deficit | ||||||
Issuance of common stock upon exercise of options (in shares) | 2,136 | 2,136 | ||||
Issuance of common stock upon exercise of options | $ 12,796 | $ 2 | 12,794 | |||
Issuance of common stock under RSU release (in shares) | 2,680 | |||||
Issuance of common stock under RSU and PSU release | 0 | $ 1 | (1) | |||
Issuance of common stock under employee stock purchase plan (in shares) | 689 | |||||
Issuance of common stock under employee stock purchase plan | 27,452 | 27,452 | ||||
Issuance of common stock upon exercise of options (in shares) | 57 | |||||
Vesting of early exercised stock options | 2,389 | 2,389 | ||||
Issuance of common stock for founders holdbacks related to acquisitions (in shares) | 11 | |||||
Issuance of common stock for founders holdbacks related to acquisitions | 2,867 | 2,867 | ||||
Stock-based compensation expense | 214,716 | 214,716 | ||||
Capitalized stock-based compensation | 7,633 | 7,633 | ||||
Fair value of replacement equity awards attributable to pre-acquisition service | 4,011 | 4,011 | ||||
Net income (loss) | (190,639) | (192,822) | 2,183 | |||
Non-controlling interest | 7,905 | 7,905 | ||||
Other comprehensive loss | (1,434) | (1,434) | ||||
Ending balance (in shares) at Oct. 31, 2021 | 229,297 | |||||
Ending balance at Oct. 31, 2021 | 959,570 | $ 115 | 1,870,120 | (922,938) | 885 | 11,388 |
Beginning balance (in shares) at Jul. 31, 2021 | 228,152 | |||||
Beginning balance at Jul. 31, 2021 | 911,401 | $ 114 | 1,775,087 | (872,483) | 1,550 | 7,133 |
Stockholders' Deficit | ||||||
Issuance of common stock upon exercise of options (in shares) | 375 | |||||
Issuance of common stock upon exercise of options | 2,580 | 2,580 | ||||
Issuance of common stock under RSU release (in shares) | 759 | |||||
Issuance of common stock under RSU and PSU release | 0 | $ 1 | (1) | |||
Vesting of early exercised stock options | 795 | 795 | ||||
Issuance of common stock for founders holdbacks related to acquisitions (in shares) | 11 | |||||
Issuance of common stock for founders holdbacks related to acquisitions | 2,867 | 2,867 | ||||
Stock-based compensation expense | 85,706 | 85,706 | ||||
Capitalized stock-based compensation | 3,086 | 3,086 | ||||
Net income (loss) | (50,450) | (50,455) | 5 | |||
Non-controlling interest | 4,250 | 4,250 | ||||
Other comprehensive loss | (665) | (665) | ||||
Ending balance (in shares) at Oct. 31, 2021 | 229,297 | |||||
Ending balance at Oct. 31, 2021 | $ 959,570 | $ 115 | $ 1,870,120 | $ (922,938) | $ 885 | $ 11,388 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Operating activities | ||
Net income (loss) | $ (190,639) | $ (73,627) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 39,247 | 27,728 |
Loss on disposal of property and equipment | 259 | 0 |
Amortization of intangible assets | 9,072 | 579 |
Amortization of deferred contract acquisition costs | 79,712 | 44,940 |
Non-cash operating lease cost | 6,727 | 7,666 |
Stock-based compensation expense | 217,315 | 101,961 |
Gain on sale of debt securities, net | 0 | (1,347) |
Amortization of marketable securities purchased at a premium | 0 | 578 |
Non-cash interest expense | 1,824 | 506 |
Change in fair value of strategic investments | (4,356) | 0 |
Changes in operating assets and liabilities, net of impact of acquisitions | ||
Accounts receivable, net | (40,644) | (6,603) |
Deferred contract acquisition costs | (151,901) | (84,741) |
Prepaid expenses and other assets | (9,788) | 1,487 |
Accounts payable | (7,033) | 6,556 |
Accrued expenses and other current liabilities | 81,826 | 1,643 |
Accrued payroll and benefits | 22,258 | 18,712 |
Operating lease liabilities | (7,394) | (1,434) |
Deferred revenue | 375,582 | 189,582 |
Other liabilities, noncurrent | (7,001) | 7,917 |
Net cash provided by operating activities | 415,066 | 242,103 |
Investing activities | ||
Purchases of property and equipment | (85,420) | (40,245) |
Capitalized internal-use software and website development | (15,201) | (6,345) |
Purchase of strategic investments | (15,809) | (1,500) |
Business acquisitions, net of cash acquired | (353,746) | (85,469) |
Purchase of intangible assets | (680) | 0 |
Purchases of marketable securities | 0 | (84,904) |
Proceeds from sales of marketable securities | 0 | 639,586 |
Maturities of marketable securities | 0 | 91,605 |
Net cash (used in) provided by investing activities | (470,856) | 512,728 |
Financing activities | ||
Proceeds from issuance of common stock upon exercise of stock options | 12,796 | 21,522 |
Proceeds from issuance of common stock under the employee stock purchase plan | 27,452 | 17,284 |
Capital contributions from non-controlling interest holders | 7,905 | 800 |
Net cash provided by financing activities | 46,353 | 39,606 |
Effect of foreign exchange rates on cash and cash equivalents | (1,663) | 691 |
Net (decrease) increase in cash and cash equivalents | (11,100) | 795,128 |
Cash and cash equivalents, beginning of period | 1,918,608 | 264,798 |
Cash and cash equivalents, end of period | 1,907,508 | 1,059,926 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 235 | 4 |
Income taxes paid, net of refunds received | 3,854 | 1,536 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Net increase in property and equipment included in accounts payable and accrued expenses | 7,066 | 4,755 |
Vesting of early exercised stock options | 2,389 | 2,521 |
Equity consideration for acquisitions | 4,011 | 3,842 |
Operating lease liabilities arising from obtaining operating right of-use assets | 4,591 | 6,181 |
Line of Credit | ||
Financing activities | ||
Payment of debt issuance costs | (219) | 0 |
Senior Notes | ||
Financing activities | ||
Payment of debt issuance costs | $ (1,581) | $ 0 |
Description of Business and Bas
Description of Business and Basis of Presentation | 9 Months Ended |
Oct. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Business CrowdStrike Holdings, Inc. (the “Company”) was formed on November 7, 2011. The Company provides a leading cloud-delivered solution for next-generation endpoint and cloud workload protection via a software as a service (“SaaS”) subscription-based model that spans multiple security markets, including corporate workload security, security and vulnerability management, managed security services, IT operations management, threat intelligence services, identity protection and log management. The Company is headquartered in Sunnyvale, California. The Company conducts its business in the United States, as well as locations internationally, including in Australia, Germany, India, Israel, Romania, and the United Kingdom. Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP have been condensed or omitted, and accordingly the balance sheet as of January 31, 2021, and related disclosures, have been derived from the audited consolidated financial statements at that date but do not include all of the information required by U.S. GAAP for complete consolidated financial statements. These unaudited condensed consolidated financial statements have been prepared on the same basis as the Company’s annual consolidated financial statements and, in the opinion of management, reflect all normal recurring adjustments that are necessary for the fair statement of the Company’s condensed consolidated financial information. The results of operations for the three and nine months ended October 31, 2021 are not necessarily indicative of the results to be expected for the year ending January 31, 2022 or for any other interim period or for any other future year. The accompanying interim unaudited condensed consolidated financial statements and related financial information should be read in conjunction with Item 8, “Financial Statements and Supplementary Data” included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2021, filed with the SEC on March 18, 2021. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the Company’s condensed consolidated financial statements and accompanying notes. These estimates are based on information available as of the date of the condensed consolidated financial statements. On a regular basis, management evaluates these estimates and assumptions. Actual results may differ from these estimates and such difference could be material to the Company’s condensed consolidated financial statements. Estimates and assumptions used by management include, but are not limited to, revenue recognition, the allowance for credit losses, the useful lives of long-lived assets, the fair values of strategic investments, the period of benefit for deferred contract acquisition costs, the discount rate used for operating leases, the recognition and disclosure of contingent liabilities, income taxes, stock-based compensation, the fair value of assets acquired and liabilities assumed for business combinations, and the fair value and effective interest rate for the Senior Notes. Due to the Coronavirus (“COVID-19”) pandemic, there has been uncertainty and disruption in the global economy and financial markets. The Company is not aware of any specific event or circumstance that would require a material update to its estimates or judgments or an adjustment of the carrying value of its assets or liabilities as of October 31, 2021. While there was not a material impact to the Company’s condensed consolidated financial statements as of and for the three and nine months ended October 31, 2021, these estimates may change, as new events occur and additional information is obtained, as well as other factors related to COVID-19 that could result in material impacts to the Company’s condensed consolidated financial statements in future reporting periods. Concentration of Credit Risk and Geographic Information The Company generates revenue from the sale of subscriptions to access its cloud platform and professional services. The Company’s sales team, along with its channel partner network of system integrators and value-added resellers (collectively, “channel partners”), sells the Company’s services worldwide to organizations of all sizes. Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash, cash equivalents, accounts receivable, and strategic investments. The Company’s cash is placed with high-credit-quality financial institutions and issuers, and at times exceed federally insured limits. The Company has not experienced any credit loss relating to its cash equivalents and strategic investments. The Company performs periodic credit evaluations of its customers and generally does not require collateral. Channel partners or direct customers who represented 10% or more of the Company’s accounts receivable were as follows: October 31, January 31, 2021 2021 Channel partner A (1) 11 % 10 % Channel partner B 10 % 5 % Customer A (1) — % 17 % _______________________________ (1) Channel Partner A and Customer A are controlled by the same company. There were no direct customers or channel partners who represented 10% or more of the Company’s total revenue during the three and nine months ended October 31, 2021 and October 31, 2020. Significant Accounting Policies The Company’s significant accounting policies are described in the Company’s Annual Report on Form 10-K for the year ended January 31, 2021. There have been no significant changes to these policies that have had a material impact on the Company’s condensed consolidated financial statements and related notes for the three and nine months ended October 31, 2021. Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (the “FASB”) issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which enhances and simplifies various aspects of the income tax accounting guidance, including requirements such as tax basis step-up in goodwill obtained in a transaction that is not a business combination, ownership changes in investments, and interim-period accounting for enacted changes in tax law. The Company adopted this guidance on February 1, 2021, which did not have a material effect on its condensed consolidated financial statements. Recently Issued Accounting Pronouncements In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires that an entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606 as if it had originated the contracts. For public business entities, this ASU is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The Company is currently evaluating the impact of this ASU on the Company’s consolidated financial statements. |
Investments and Fair Value Meas
Investments and Fair Value Measurements | 9 Months Ended |
Oct. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Investments and Fair Value Measurements | Investments and Fair Value Measurements The Company follows ASC 820 , Fair Value Measurements , with respect to marketable securities that are measured at fair value on a recurring basis. Under the standard, fair value is defined as the exit price, or the amount that would be received to sell an asset or a liability in an orderly transaction between market participants as of the measurement date. The standard also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The hierarchy is broken down into three levels as follows: Level 1 Assets and liabilities whose values are based on unadjusted quoted market prices for identical assets and liabilities in active markets Level 2 Assets and liabilities whose values are based on quoted prices in markets that are not active or inputs that are observable for substantially the full term of the asset or liability Level 3 Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s fair value hierarchy for its financial assets and liabilities that are measured at fair value on a recurring basis are as follows (in thousands): October 31, 2021 January 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash equivalents (1) Money market funds $ 300,020 $ — $ — $ 300,020 $ — $ — $ — $ — Total assets $ 300,020 $ — $ — $ 300,020 $ — $ — $ — $ — __________________________________ (1) Included in “Cash and cash equivalents” on the condensed consolidated balance sheets. There were no transfers between the levels of the fair value hierarchy during the periods presented. The following summarizes the changes in strategic investments (in thousands): October 31, January 31, 2021 2021 Total initial cost $ 18,309 $ 2,500 Unrealized gains due to changes in fair value 4,356 — Carrying value $ 22,665 $ 2,500 |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Oct. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Balance Sheet Components | Balance Sheet Components Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): October 31, January 31, Prepaid software licenses $ 21,262 $ 20,596 Prepaid expenses 17,068 12,220 Prepaid marketing 9,889 10,852 Other current assets 7,975 4,566 Prepaid hosting services 4,476 5,383 Prepaid expenses and other current assets $ 60,670 $ 53,617 Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): October 31, January 31, Data center and other computer equipment $ 187,777 $ 146,220 Capitalized internal-use software and website development 60,053 44,358 Leasehold improvements 22,302 19,733 Purchased software 5,266 3,211 Furniture and equipment 7,050 6,498 Construction in process 86,832 35,528 369,280 255,548 Less: Accumulated depreciation and amortization (127,056) (88,534) Property and equipment, net $ 242,224 $ 167,014 Construction in process primarily includes data center equipment purchased that has not yet been placed in service. As of October 31, 2021, $75.8 million of data center equipment was purchased but not yet been placed into service. Depreciation and amortization expense of property and equipment was $14.5 million and $10.1 million during the three months ended October 31, 2021 and October 31, 2020, respectively, and $39.2 million and $27.7 million during the nine months ended October 31, 2021 and October 31, 2020, respectively. There was no impairment of website and internal-use software during the three and nine months ended October 31, 2021 and October 31, 2020. The Company capitalized $9.0 million and $3.5 million in website and internal-use software during the three months ended October 31, 2021 and October 31, 2020, and $22.8 million and $8.2 million during the nine months ended October 31, 2021 and October 31, 2020, respectively. Amortization expense associated with website and internal-use software totaled $3.3 million and $1.9 million during the three months ended October 31, 2021 and October 31, 2020, respectively, and $8.6 million and $5.6 million during the nine months ended October 31, 2021 and October 31, 2020, respectively. The net book value of capitalized website and internal-use software was $34.5 million and $20.1 million as of October 31, 2021 and January 31, 2021, respectively. Intangible Assets, Net Total intangible assets, net consisted of the following (dollar in thousands): October 31, 2021 Weighted-Average Gross Carrying Amount Accumulated Amortization Net Amount (in months) Developed technology $ 82,396 $ 8,822 $ 73,574 84 Customer relationships 9,068 1,556 7,512 74 Other acquired intangible assets 2,401 617 1,784 75 Total $ 93,865 $ 10,995 $ 82,870 January 31, 2021 Weighted-Average Gross Carrying Amount Accumulated Amortization Net Amount (in months) Developed technology $ 14,513 $ 2,193 $ 12,320 56 Customer relationships 3,769 649 3,120 54 Other acquired intangible assets 399 162 237 185 Total $ 18,681 $ 3,004 $ 15,677 Amortization of developed technology and customer relationships are recorded within cost of revenue and sales and marketing expense, respectively, in the condensed consolidated statements of operations. Other acquired intangibles are recorded within cost of revenue, research and development expense and general and administrative expense in the condensed consolidated statements of operations. Amortization expense of intangible assets was $3.4 million and $0.4 million during the three months ended October 31, 2021 and October 31, 2020, and $9.1 million and $0.6 million during the nine months ended October 31, 2021 and October 31, 2020, respectively. The estimated aggregate future amortization expense of intangible assets as of October 31, 2021 is as follows (in thousands): Total Fiscal 2022 (remaining three months) $ 3,323 Fiscal 2023 13,253 Fiscal 2024 12,558 Fiscal 2025 12,474 Fiscal 2026 11,387 Thereafter 29,875 Total amortization expense $ 82,870 The developed technology, customer relationships, and other acquired intangible assets are amortized over their estimated useful lives, generally on a straight-line basis for periods ranging from 2 to 20 years. Goodwill The changes in goodwill during the nine months ended October 31, 2021 consisted of the following (in thousands): Amounts Goodwill as of January 31, 2021 $ 83,566 Goodwill acquired (1) 291,273 Foreign currency translation (950) Goodwill as of October 31, 2021 $ 373,889 __________________________________ (1) Goodwill acquired resulted from the acquisition of Humio. Refer to Note 12 for additional information. Other Assets, Noncurrent Other assets, noncurrent consisted of the following (in thousands): October 31, January 31, Other assets, noncurrent $ 11,441 $ 8,627 Deferred finance cost, noncurrent 4,499 4,355 Deferred income tax asset, noncurrent 3,065 1,328 Deposits, noncurrent 2,676 2,802 Other assets, noncurrent $ 21,681 $ 17,112 Accrued Expenses Accrued expenses consisted of the following (in thousands): October 31, January 31, Web hosting services $ 29,881 $ 14,187 Other accrued expenses 15,138 11,372 Accrued purchases of property and equipment 11,605 687 Accrued marketing 9,791 14,592 Accrued legal and accounting 5,593 4,570 Accrued interest expense 4,750 5,709 Accrued expenses $ 76,758 $ 51,117 Accrued Payroll and Benefits Accrued payroll and benefits consisted of the following (in thousands): October 31, January 31, Accrued commissions $ 36,439 $ 32,300 Accrued payroll and related expenses 22,289 16,528 Employee Stock Purchase Plan 20,361 10,969 Accrued bonuses 15,649 12,110 Accrued payroll and benefits $ 94,738 $ 71,907 In April 2020, the Company began deferring payment on its share of payroll taxes owed, as permitted by the CARES Act through December 31, 2020. As of October 31, 2021 and January 31, 2021, the Company had deferred $5.1 million of payroll taxes in other current liabilities and $5.1 million of payroll taxes in other liabilities, noncurrent on the condensed consolidated balance sheet. Other Current Liabilities Other current liabilities consisted of the following (in thousands): October 31, January 31, Income tax payable $ 62,678 $ 2,639 Other current liabilities 12,850 9,652 Accrued taxes 1,632 2,837 Customer deposits 1,447 2,371 Other current liabilities $ 78,607 $ 17,499 |
Debt
Debt | 9 Months Ended |
Oct. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Secured Revolving Credit Facility In April 2019, the Company entered into a Credit Agreement with Silicon Valley Bank and other lenders, to provide a revolving line of credit of up to $150.0 million, including a letter of credit sub-facility in the aggregate amount of $10.0 million, and a swingline sub-facility in the aggregate amount of $10.0 million. On January 4, 2021, the Company amended and restated its existing credit agreement (the “A&R Credit Agreement” and the facility thereunder the “Revolving Facility”) among CrowdStrike, Inc., as borrower, CrowdStrike Holdings, Inc., as guarantor, and Silicon Valley Bank and the other lenders party thereto, providing the Company with a revolving line of credit of up to $750.0 million, including a letter of credit sub-facility in the aggregate amount of $100.0 million, and a swingline sub-facility in the aggregate amount of $50.0 million. The Company also has the option to request an incremental facility of up to an additional $250.0 million from one or more of the lenders under the A&R Credit Agreement. The A&R Credit Agreement is guaranteed by all of the Company’s material domestic subsidiaries. The A&R Credit Agreement extended the maturity date of April 19, 2022 to January 2, 2026. Under the A&R Credit Agreement, revolving loans may be either Eurodollar Loans or Alternate Base Rate (“ABR”) Loans. Outstanding Eurodollar Loans incur interest at the Eurodollar Rate, which is defined as LIBOR (or any successor thereto), subject to a 0.00% LIBOR floor, plus a margin between 1.50% and 2.00%, depending on the Company’s senior secured leverage ratio. Outstanding ABR Loans incur interest at the highest of (a) the Prime Rate, as published by the Wall Street Journal, (b) the federal funds rate in effect for such day plus 0.50%, and (c) the Eurodollar Rate plus 1.00%, in each case plus a margin between (0.25)% and 0.25%, depending on the senior secured leverage ratio. The Company will be charged a commitment fee of 0.15% to 0.25% per year for committed but unused amounts, depending on the senior secured leverage ratio. The financial covenants require the Company to maintain a minimum consolidated interest coverage ratio of 3.00:1.00, a maximum senior secured leverage ratio of 3.00:1.00 (through January 31, 2023), and a maximum total leverage ratio of 5.50:1.00 stepping down to 3.50:1.00 over time. The Company was in compliance with the financial covenants as of October 31, 2021. The A&R Credit Agreement is secured by substantially all of the Company’s current and future consolidated assets, property and rights, including, but not limited to, intellectual property, cash, goods, equipment, contractual rights, financial assets, and intangible assets of the Company and certain of its subsidiaries. The A&R Credit Agreement contains customary covenants limiting the Company’s ability and the ability of its subsidiaries to, among other things, dispose of assets, undergo a change in control, merge or consolidate, make acquisitions, incur debt, incur liens, pay dividends, repurchase stock, and make investments, in each case subject to certain exceptions. No amounts were outstanding under the A&R Credit Agreement as of October 31, 2021 and January 31, 2021. Senior Notes On January 20, 2021, the Company issued $750.0 million in aggregate principal amount of 3.00% Senior Notes maturing in February 2029. The Senior Notes are guaranteed by the Company’s subsidiary, CrowdStrike, Inc. and will be guaranteed by each of the Company’s existing and future domestic subsidiaries that becomes a borrower or guarantor under the A&R Credit Agreement. The Senior Notes were issued at par and bear interest at a rate of 3.00% per annum. Interest payments are payable semiannually on February 15 and August 15 of each year, commencing on August 15, 2021. The Company may voluntarily redeem the Senior Notes, in whole or in part, 1) at any time prior to February 15, 2024 at (a) 100.00% of their principal amount, plus a “make whole” premium or (b) with the net cash proceeds received from an equity offering at a redemption price equal to 103.00% of the principal amount, provided the aggregate principal amount of all such redemptions does not exceed 40% of the original aggregate principal amount of the Senior Notes; 2) at any time on or after February 15, 2024 at a prepayment price equal to 101.50% of the principal amount; 3) at any time on or after February 15, 2025 at a prepayment price equal to 100.75% of the principal amount; and 4) at any time on or after February 15, 2026 at a prepayment price equal to 100.00% of the principal amount; in each case, plus accrued and unpaid interest, if any, to but excluding, the date of redemption. The net proceeds from the debt offering were $738.0 million after deducting underwriting commissions of $9.4 million and $2.6 million of issuance costs. The debt issuance costs are being amortized to interest expense using the effective interest method over the term of the Senior Notes. Interest expense related to contractual interest expense, amortization of debt issuance costs and accretion of debt discount was $6.0 million and $18.0 million during the three and nine months ended October 31, 2021, respectively. In certain circumstances involving a change of control event, the Company will be required to make an offer to repurchase all or, at the holder’s option, any part, of each holder’s notes of that series at 101% of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date. The indenture governing the Senior Notes (the “Indenture”) contain covenants limiting the Company’s ability and the ability of its subsidiaries to create liens on certain assets to secure debt; grant a subsidiary guarantee of certain debt without also providing a guarantee of the Senior Notes; declare dividends; and consolidate or merge with or into, or sell or otherwise dispose of all or substantially all of its assets to, another person. These covenants are subject to a number of limitations and exceptions. Certain of these covenants will not apply during any period in which the notes are rated investment grade by Fitch Ratings, Inc. (“Fitch”), Moody’s Investors Service, Inc. (“Moody’s”) and Standard & Poor’s Ratings Services (“S&P”). As of October 31, 2021, the Company was in compliance with all of its financial covenants under the Indenture associated with the Senior Notes. Based on the trading prices of the Senior Notes, the fair value of the Senior Notes as of October 31, 2021 was approximately $742.8 million. While the Senior Notes are recorded at cost, the fair value of the Senior Notes was determined based on quoted prices in markets that are not active; accordingly, the Senior Notes is categorized as Level 2 for purposes of the fair value measurement hierarchy. |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recognized an income tax expense of $4.5 million and $0.5 million for the three months ended October 31, 2021 and October 31, 2020, respectively, and $58.8 million and $1.9 million for the nine months ended October 31, 2021 and October 31, 2020, respectively. The tax expense for the three months ended October 31, 2021 was primarily attributable to pre-tax foreign earnings. The tax expense for the nine months ended October 31, 2021 was primarily attributable to pre-tax foreign earnings and the intercompany sale of intellectual property from Humio. The Company transferred acquired intellectual property from the foreign subsidiary to the U.S. Although the transfer of the intellectual property between consolidated entities did not result in any gain in the consolidated results of operations, the Company generated a taxable gain in the foreign jurisdiction resulting in an additional tax expense of $48.8 million. The Company’s effective tax rates of (9.7)% and (1.9)% for the three months ended October 31, 2021 and October 31, 2020, respectively, and (43.8)% and (2.7)% for the nine months ended October 31, 2021 and October 31, 2020, respectively, differ from the U.S. statutory tax rate primarily due to U.S. losses for which there is no benefit and the tax impact from the intercompany sale of intellectual property from Humio for the nine months ended October 31, 2021. The Company has a full valuation allowance on its U.S. federal and state and its U.K. deferred tax assets. As a result, consistent with the prior year, the Company does not record a tax benefit on these losses because it is more likely than not that the benefit will not be realized. The balance of gross unrecognized tax benefits was $39.5 million and $24.4 million as of October 31, 2021 and January 31, 2021, respectively. The increase was primarily due to establishing an uncertain tax position associated with research & development tax credits. As of October 31, 2021 and January 31, 2021, approximately $1.3 million and $0.6 million, respectively of the unrecognized tax benefits including interest and penalties would affect the Company’s effective tax rate if favorably resolved. In the third quarter of fiscal 2022, given management’s determination of the timing of cash payments, long-term tax liability of $21.6 million was reclassified to short-term and is no longer considered an uncertain tax position by the Company. The Company expects to have resolution on discussions with tax authorities on certain tax matters, which will likely have an impact on the Company’s provision for income taxes in the fourth quarter. The Company is subject to examination by tax authorities both domestically and internationally. The Company believes that adequate amounts have been reserved for any adjustments that may result from these examinations, although the Company cannot assure that this will be the case given the inherent uncertainties in these examinations. It is impractical to determine the amount and timing of these adjustments. In accordance with the guidance on the accounting for uncertainty in income taxes, for all U.S. and other tax jurisdictions, the Company recognizes potential liabilities for anticipated tax audit issues based on the Company’s estimate of whether, and the extent to which, additional taxes and interest will be due. If the Company’s estimate of income tax liabilities proves to be less than the ultimate assessment, a further charge to expense would be required. If events occur and the payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period when the Company determines the liabilities are no longer necessary. The Company includes interest and penalties related to unrecognized tax benefits within the provision for income taxes in the condensed consolidated statements of operations. Accrued interest and penalties are included within other liabilities, noncurrent on the condensed consolidated balance sheet. |
Leases
Leases | 9 Months Ended |
Oct. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases Operating Leases The Company has entered into non-cancelable operating lease agreements with various expiration dates through fiscal 2027. Certain lease agreements include options to renew or terminate the lease, which are not reasonably certain to be exercised and therefore are not factored into the determination of lease payments. Cash paid for amounts included in the measurement of operating lease liabilities was $2.9 million and $2.7 million for the three months ended October 31, 2021 and October 31, 2020 and $8.8 million and $8.1 million for the nine months ended October 31, 2021 and October 31, 2020, respectively. Operating lease liabilities arising from obtaining operating right-of-use assets were $1.5 million and none for the three months ended October 31, 2021 and October 31, 2020, respectively. Operating lease liabilities arising from obtaining operating right-of-use assets were $4.6 million and $6.2 million for the nine months ended October 31, 2021 and October 31, 2020, respectively. As of October 31, 2021, the weighted-average remaining lease term is 3.4 years, and the weighted-average discount rate is 5.4%. The component of lease costs was as follows (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 Lease cost Operating lease cost $ 2,782 $ 2,677 $ 8,393 $ 7,631 Short-term lease cost 547 492 1,508 1,477 Variable lease cost 1,472 774 3,208 2,128 Total lease cost $ 4,801 $ 3,943 $ 13,109 $ 11,236 There was no sublease income for the three and nine months ended October 31, 2021 or October 31, 2020. As of October 31, 2021, the Company has not entered into any non-cancelable operating leases with a term greater than 12 months that have not yet commenced. The maturities of the Company’s non-cancelable operating lease liabilities are as follows (in thousands): October 31, 2021 Fiscal 2022 (remaining three months) $ 1,489 Fiscal 2023 11,895 Fiscal 2024 11,861 Fiscal 2025 10,764 Fiscal 2026 4,811 Thereafter 608 Total operating lease payments 41,428 Less: imputed interest (3,827) Present value of operating lease liabilities $ 37,601 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Oct. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock Incentive Plan In May 2019, the Company’s board of directors adopted, and the stockholders approved the CrowdStrike Holdings, Inc. 2019 Equity Incentive Plan (the “2019 Plan”) with the purpose of granting stock-based awards to employees, directors, officers and consultants, including stock options, restricted stock awards, restricted stock units and performance-based restricted stock units. A total of 8,750,000 shares of Class A common stock were initially available for issuance under the 2019 Plan. The Company’s compensation committee administers the 2019 Plan. The number of shares of the Company’s common stock available for issuance under the 2019 Plan is subject to an annual increase on the first day of each fiscal year beginning on February 1, 2020, equal to the lesser of: (i) two percent (2.0%) of outstanding shares of the Company’s capital stock as of the last day of the immediately preceding fiscal year or (ii) such other amount as the Company’s board of directors may determine. The 2011 Plan was terminated on June 10, 2019, which was the business day prior to the effectiveness of the Company’s registration statement on Form S-1 used in connection with the Company’s IPO, and stock-based awards are no longer granted under the 2011 Plan. Any shares underlying stock options that expire or terminate or are forfeited or repurchased under the 2011 Plan will be automatically transferred to the 2019 Plan. Stock Options The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option-pricing model with the assumptions included in the table below. The expected term represents the period that the Company’s share-based awards are expected to be outstanding. The expected term assumptions were determined based on the vesting terms, exercise terms, and contractual lives of the options. The expected stock price volatility is based upon comparable public company data. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the estimated option life. The fair value of each option was estimated on the date of grant using the following assumptions during the period: Nine Months Ended October 31, 2021 2020 Expected term (in years) 3.8 - 5.6 3.2 - 6.1 Risk-free interest rate 0.6% - 1.0% 0.2% - 0.4% Expected stock price volatility 36.1% - 37.1% 35.8% - 37.3% Dividend yield — % — % The following table is a summary of stock option activity for the nine months ended October 31, 2021: Number of Weighted-Average (in thousands) Options outstanding at January 31, 2021 6,646 $ 8.24 Granted 93 $ 3.19 Exercised (2,136) $ 5.99 Canceled (182) $ 30.31 Options outstanding at October 31, 2021 4,421 $ 8.32 Options vested and expected to vest at October 31, 2021 4,421 $ 8.32 Options exercisable at October 31, 2021 2,871 $ 6.56 Options outstanding include 378,031 options that were unvested as of October 31, 2021. The aggregate intrinsic value of options vested and exercisable was $790.1 million and $711.4 million as of October 31, 2021 and January 31, 2021, respectively. The weighted-average remaining contractual term of options vested and exercisable was 6.0 years and 6.4 years as of October 31, 2021 and January 31, 2021, respectively. No options were granted during the three months ended October 31, 2021. The weighted-average grant date fair values of all options granted was $121.00 per share during the three months ended October 31, 2020, and $180.08 and $66.31 per share during the nine months ended October 31, 2021 and October 31, 2020, respectively. The total intrinsic value of all options exercised was $94.9 million and $162.4 million during the three months ended October 31, 2021 and October 31, 2020, respectively, and $483.3 million and $516.4 million during the nine months ended October 31, 2021 and October 31, 2020, respectively. The aggregate intrinsic value of stock options outstanding as of October 31, 2021 and January 31, 2021 was $1.2 billion and $1.4 billion, respectively, which represents the excess of the fair value of the Company’s common stock over the exercise price of the options multiplied by the number of options outstanding. The weighted-average remaining contractual term of stock options outstanding was 6.4 years and 7.0 years as of October 31, 2021 and January 31, 2021, respectively. Total unrecognized stock-based compensation expense related to unvested options was $21.0 million as of October 31, 2021. This expense is expected to be amortized on a straight-line basis over a weighted-average vesting period of 1.4 years. Total unrecognized stock-based compensation expense related to unvested options was $24.3 million as of January 31, 2021. This expense is expected to be amortized on a straight-line basis over a weighted-average vesting period of 1.7 years. Early Exercise of Employee Options The 2011 Stock Plan allows for the early exercise of stock options for certain individuals as determined by the Board of Directors. The consideration received for an early exercise of an option is a deposit of the exercise price and the related dollar amount is recorded as a liability for early exercise of unvested stock options in the condensed consolidated balance sheets. This liability is reclassified to additional paid-in capital as the awards vest. If a stock option is early exercised, the unvested shares may be repurchased by the Company in case of employment termination or for any reason, including death and disability, at the price paid by the purchaser for such shares. There were no issued shares of common stock related to early exercised stock options for the three and nine months ended October 31, 2021 or October 31, 2020. As of October 31, 2021, the number of shares of common stock related to early exercised stock options subject to repurchase was 279,409 shares for $3.0 million. As of January 31, 2021, the number of shares of common stock related to early exercised stock options subject to repurchase was 548,028 shares for $5.4 million. Common stock purchased pursuant to an early exercise of stock options is not deemed to be outstanding for accounting purposes until those shares vest. The Company includes unvested shares subject to repurchase in the number of shares outstanding in the condensed consolidated balance sheet and statements of stockholders’ equity. Restricted Stock Units Restricted Stock Units (“RSUs”) granted under the 2019 Plan are generally subject to only service-based vesting condition. The service-based vesting condition is generally satisfied based on one of four vesting schedules: (i) vesting of one-fourth of the RSUs on the first “Company vest date” (defined as March 20, June 20, September 20, or December 20) on or following the one-year anniversary of the vesting commencement date with the remainder of the RSUs vesting in twelve equal quarterly installments thereafter, subject to continued service, (ii) vesting in sixteen equal quarterly installments, subject to continued service, (iii) vesting in eight equal quarterly installments, subject to continued service, or (iv) vesting sixteen quarterly installments with 10% in the first year, 15% in the second year, 25% in the third year and 50% in the fourth year, subject to continued service. The valuation of such RSUs is based solely on the fair value of the Company’s stock price on the date of grant. Expense for RSUs that have a service-based vesting condition only are being amortized on a straight-line basis. Expense for RSUs that have both a service-based and a performance-based vesting condition are being amortized under the accelerated attribution method. Total unrecognized stock-based compensation expense related to unvested RSUs was $719.8 million as of October 31, 2021. This expense is expected to be amortized (subject to acceleration or straight-line basis) over a weighted-average vesting period of 2.4 years. Performance-based Stock Units Performance-based stock units (“PSUs”) granted under the 2019 Plan are generally subject to both a service-based vesting condition and a performance-based vesting condition. PSUs will vest upon the achievement of specified performance targets and subject to continued service through the applicable vesting dates. The compensation cost is recognized over the requisite service period when it is probable that the performance condition will be satisfied. Expense for PSUs is being amortized under the accelerated attribution method and may be adjusted over the vesting period based on interim estimates of performance against pre-set objectives. Total unrecognized stock-based compensation expense related to unvested PSUs was $56.9 million as of October 31, 2021. This expense is expected to be amortized over a weighted-average vesting period of 1.3 years. Special PSU Award On August 28, 2021, the Company’s Board of Directors granted 540,000 performance stock units to George Kurtz, the Company’s President and Chief Executive Officer (the “Special PSU Award”). The Special PSU Award will vest upon the satisfaction of the Company’s achievement of specified stock price hurdles, which is based on the average of the closing stock price per share of the Company’s Class A common stock during any 45 consecutive trading day period during the applicable performance period, and a service-based vesting condition. The service condition applicable to each tranche of the Special PSU Award will be satisfied in installments as follows, subject to continued employment with the Company through each applicable vesting date: (i) 50% of the Special PSU Award underlying the applicable tranche will service vest on the first anniversary of the vesting commencement date applicable to such tranche of the Special PSU Award (i.e., February 1, 2022, February 1, 2023, February 1, 2024 and February 1, 2025) and (ii) the remaining PSUs with respect to such tranche will thereafter service vest in four equal quarterly installments of 12.5%. The Company measured the fair value of the Special PSU Award using a Monte Carlo simulation valuation model. The risk-free interest rate used was 0.85%, which is based on the zero-coupon-risk-free interest rate derived from the Treasury Constant Maturities yield curve for the expected term of the award on the grant date. The expected volatility is a blended volatility rate of 55.36%, which includes 50% weight on the Company’s historical volatility calculated from daily stock returns over a 2.21-year look-back from the grant date and 50% weight based on the Company’s implied volatility as of the grant date. Stock-based compensation expense relating to the Special PSU Award is recognized using the accelerated attribution method. Total unrecognized stock-based compensation expense related to the unvested portion of the Special PSU Award was $115.3 million as of October 31, 2021. This expense is expected to be amortized over a weighted-average vesting period of 3.1 years. The following table is a summary of RSUs, PSUs and the Special PSU Award activities for the nine months ended October 31, 2021: Number of Weighted- (in thousands) RSUs, PSUs and the Special PSU Award outstanding at January 31, 2021 8,449 $ 59.27 Granted 2,964 $ 229.47 Vested (2,680) $ 58.59 Performance adjustment (1) 153 $ 58.15 Forfeited (414) $ 99.42 RSUs, PSUs and the Special PSU Award outstanding at October 31, 2021 8,472 $ 117.05 RSUs, PSUs, and the Special PSU Award expected to vest at October 31, 2021 8,472 $ 117.05 __________________________________ (1) Performance adjustment represents adjustments in shares outstanding due to the actual achievement of performance based awards, the achievement of which was based upon predefined financial performance targets. Employee Stock Purchase Plan In May 2019, the board of directors adopted, and the stockholders approved the CrowdStrike Holdings, Inc. 2019 Employee Stock Purchase Plan (“ESPP”), which became effective on June 10, 2019, which was the business day prior to the effectiveness of the Company’s registration statement on Form S-1 used in connection with the Company’s IPO. A total of 3,500,000 shares of Class A common stock were initially reserved for issuance under the ESPP. The Company’s compensation committee administers the ESPP. The number of shares of common stock available for issuance under the ESPP is subject to an annual increase on the first day of each fiscal year beginning on February 1, 2020, equal to the lesser of: (i) one percent (1%) of outstanding shares of the Company’s capital stock as of the last day of the immediately preceding fiscal year or (ii) such other amount as its board of directors may determine. In May 2021, the Company’s compensation committee adopted an amendment and restatement of the ESPP, which was approved by the Company’s stockholders in June 2021. The amended and restated ESPP clarified the original intent that the annual increase will in no event exceed 5,000,000 shares of the Company’s Class A common stock in any year. The ESPP provides for consecutive offering periods that will typically have a duration of approximately 24 months in length and is comprised of four purchase periods of approximately six months in length. The offering periods are scheduled to start on the first trading day on or after June 11 and December 11 of each year. The first offering period commenced on June 11, 2019 and ended on June 10, 2021. The ESPP provides eligible employees with an opportunity to purchase shares of the Company’s Class A common stock through payroll deductions of up to 15% of their eligible compensation. A participant may purchase a maximum of 2,500 shares of common stock during a purchase period. Amounts deducted and accumulated by the participant are used to purchase shares of common stock at the end of each six-month purchase period. The purchase price of the shares shall be 85% of the lower of the fair market value of the Class A common stock on (i) the first trading day of the applicable offering period and (ii) the last trading day of each purchase period in the related 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 common stock. Participation ends automatically upon termination of employment. The ESPP allows for up to one increase in contribution during each purchase period. If an employee elects to increase his or her contribution, the Company treats this as an accounting modification. The pre- and post-modification fair values are calculated on the date of the modification, and the incremental expense is then amortized over the remaining purchase period. Incremental expense as a result of such modification was $1.1 million and $0.8 million for the three months ended October 31, 2021 and October 31, 2020, respectively, and $5.4 million and $1.6 million for the nine months ended October 31, 2021 and October 31, 2020, respectively. Employee payroll contributions ultimately used to purchase shares are reclassified to stockholders’ equity on the purchase date. ESPP employee payroll contributions accrued at October 31, 2021 and January 31, 2021 totaled $20.4 million and $11.0 million are included within accrued payroll and benefits in the condensed consolidated balance sheets. The following table summarizes the assumptions used in the Black-Scholes option-pricing model to determine fair value of the Company’s common shares to be issued under the ESPP for the offering periods beginning in June 2019: Nine Months Ended October 31, 2021 2020 Expected term (in years) 0.5 - 2.0 0.5 - 2.0 Risk-free interest rate 0.0% - 1.9% 0.2% - 2.0% Expected stock price volatility 33.0% - 55.9% 30.1% - 54.3% Dividend yield — % — % Stock-Based Compensation Expense Stock-based compensation expense included in the condensed consolidated statements of operations is as follows (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 Subscription cost of revenue $ 5,969 $ 3,226 $ 15,548 $ 7,856 Professional services cost of revenue 2,546 1,551 6,963 3,947 Sales and marketing 25,499 12,811 68,178 35,101 Research and development 27,333 11,771 70,942 25,700 General and administrative 25,319 11,251 55,684 29,357 Total stock-based compensation expense $ 86,666 $ 40,610 $ 217,315 $ 101,961 |
Revenue, Deferred Revenue and R
Revenue, Deferred Revenue and Remaining Performance Obligations | 9 Months Ended |
Oct. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Deferred Revenue and Remaining Performance Obligations | Revenue, Deferred Revenue and Remaining Performance Obligations The following table summarizes the revenue from contracts by type of customer (in thousands, except percentages): Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 Amount % Revenue Amount % Revenue Amount % Revenue Amount % Revenue Channel Partners $ 282,774 74 % $ 175,837 76 % $ 761,597 75 % $ 459,529 75 % Direct Customers 97,277 26 % 56,623 24 % 258,987 25 % 149,980 25 % Total revenue $ 380,051 100 % $ 232,460 100 % $ 1,020,584 100 % $ 609,509 100 % The Company uses channel partners to complement direct sales and marketing efforts. The partners place an order with the Company after negotiating the order directly with an end customer. The partners negotiate pricing with the end customer and in some rare instances are responsible for certain support levels directly with the end customer. The Company’s contract is with the partner and payment to the Company is not contingent on the receipt of payment from the end customer. The Company recognizes the contractual amount charged to the partners as revenue ratably over the term of the arrangement once access to the Company’s solution has been provided to the end customer. The Company also uses referral partners who refer customers in exchange for a referral fee. The Company negotiates pricing and contracts directly with the end customer. The Company recognizes revenue from the sales to the end customers ratably over the term of the contract once access to the Company’s solution has been provided to the end customer. The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use the Company’s platform or service (in thousands, except percentages): Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 Amount % Revenue Amount % Revenue Amount % Revenue Amount % Revenue United States $ 276,698 73 % $ 167,741 72 % $ 741,168 73 % $ 438,955 72 % Europe, Middle East, and Africa 50,721 13 % 33,192 14 % 138,920 14 % 86,785 14 % Asia Pacific 37,265 10 % 20,551 9 % 99,263 9 % 53,186 9 % Other 15,367 4 % 10,976 5 % 41,233 4 % 30,583 5 % Total revenue $ 380,051 100 % $ 232,460 100 % $ 1,020,584 100 % $ 609,509 100 % No single country other than the United States represented 10% or more of the Company’s total revenue during the three and nine months ended October 31, 2021 and October 31, 2020. Contract Balances Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract. Such amounts are recognized as revenue over the contractual period. The Company recognized revenue of $316.2 million and $185.7 million for the three months ended October 31, 2021 and October 31, 2020, respectively, and $598.8 million and $354.5 million for the nine months ended October 31, 2021 and October 31, 2020, respectively, that were included in the corresponding contract liability balance at the beginning of the period. The Company receives payments from customers based upon contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Payment terms on invoiced amounts are typically 30 - 60 days. Contract assets include amounts related to the contractual right to consideration for both completed and partially completed performance obligations that may not have been invoiced. Changes in deferred revenue were as follows (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 Carrying Amount Beginning Balance $ 1,164,357 $ 689,840 $ 911,895 $ 571,168 Additions to deferred revenue 503,890 305,294 1,396,885 801,015 Recognition of deferred revenue (380,051) (232,460) (1,020,584) (609,509) Ending Balance $ 1,288,196 $ 762,674 $ 1,288,196 $ 762,674 Remaining Performance Obligations The Company’s subscription contracts with its customers have a typical term of one amount of the transaction price allocated to remaining performance obligations was $1.9 billion. The Company expects to recognize 71% of the remaining performance obligations in the next 12 months and 28% between 13 to 36 months, with the remainder to be recognized thereafter. Costs to Obtain a Contract The Company capitalizes referral fees paid to partners and sales commission and associated payroll taxes paid to internal sales personnel, contractors or sales agents that are incremental to the acquisition of channel partner and direct customer contracts and would not have occurred absent the customer contract. These costs are recorded as deferred contract acquisition costs, current and deferred contract acquisition costs, noncurrent on the condensed consolidated balance sheets. Sales commissions for renewal of a contract are not considered commensurate with the commissions paid for the acquisition of the initial contract or follow-on upsell given the substantive difference in commission rates in proportion to their respective contract values. Commissions, including referral fees paid to channel partners, earned upon the initial acquisition of a contract or subsequent upsell are amortized over an estimated period of benefit of 4 years while commissions earned for renewal contracts are amortized over the contractual term of the renewals. Sales commissions associated with professional service contracts are amortized ratably over an estimated period of benefit of six months and included in sales and marketing expense in the condensed consolidated statements of operations. In determining the period of benefit for commissions paid for the acquisition of the initial contract, the Company took into consideration the expected subscription term and expected renewals of customer contracts, the historical duration of relationships with customers, customer retention data, and the life of the developed technology. The Company periodically reviews the carrying amount of deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these deferred costs. The Company did not recognize any material impairment losses of deferred contract acquisition costs during the three and nine months ended October 31, 2021 and October 31, 2020. The following table summarizes the activity of deferred contract acquisition costs (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 Beginning balance $ 235,913 $ 135,023 $ 198,756 $ 114,206 Capitalization of contract acquisition costs 64,325 35,753 151,901 84,741 Amortization of deferred contract acquisition costs (29,293) (16,769) (79,712) (44,940) Ending balance $ 270,945 $ 154,007 $ 270,945 $ 154,007 Deferred contract acquisition costs, current $ 108,636 $ 62,422 $ 108,636 $ 62,422 Deferred contract acquisition costs, noncurrent 162,309 91,585 162,309 91,585 Total deferred contract acquisition costs $ 270,945 $ 154,007 $ 270,945 $ 154,007 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Obligations The Company enters into long-term non-cancelable agreements with providers to purchase data center capacity, such as bandwidth and colocation space, for the Company’s cloud platform. As of October 31, 2021, the Company is committed to spend $52.4 million on such agreements through fiscal 2028. These obligations are included in purchase obligations below. In the normal course of business, the Company enters into non-cancelable purchase commitments with various parties to purchase products and services such as technology, equipment, office renovations, corporate events, and consulting services. A summary of noncancellable purchase obligations in excess of one year as of October 31, 2021 with expected date of payment is as follows (in thousands): Total Fiscal 2022 (remaining three months) $ 23,806 Fiscal 2023 57,566 Fiscal 2024 54,492 Fiscal 2025 10,047 Fiscal 2026 7,299 Thereafter 2,546 Total purchase commitments $ 155,756 In October 2021, the Company entered into a new private pricing addendum with Amazon Web Services (“AWS”), which provides the Company with cloud computing infrastructure. Under the new pricing addendum, the minimum commitment is $600.0 million of cloud services from AWS through September 2026. As of October 31, 2021, the Company’s remaining contractual commitment is $587.7 million , which is excluded from the table above. The Company expects to meet its remaining commitment with AWS. Letters of Credit As of October 31, 2021 and January 31, 2021, the Company had an unused standby letter of credit for $0.4 million securing its headquarters facility in Sunnyvale, California, as well as an unused standby letter of credit for $1.0 million securing its facility in Austin, Texas. Litigation In November 2016, Fair Isaac Corporation (“FICO”) filed a petition before the Trademark Trial and Appellate Board (“TTAB”) at the U.S. Patent and Trademark Office, seeking cancellation of the Company’s registration of its “CrowdStrike Falcon” trademark, and a notice of opposition of the Company’s trademark application for “Falcon OverWatch.” The Company denies that any of the relief FICO seeks is appropriate, and has itself moved to cancel, or in the alternative amend, FICO’s “Falcon” trademark registrations before the TTAB. The proceedings have been consolidated and are in the discovery phase with trial periods scheduled to begin in December 2021. The Company is vigorously defending the case, but given the early stage, although a loss may reasonably be possible, the Company is unable to predict the likelihood of success of FICO’s claims or estimate a loss or range of loss. As a result, no liability has been recorded as of October 31, 2021 or January 31, 2021. In addition, the Company is involved in various other legal proceedings and subject to claims that arise in the ordinary course of business. For any claims for which the Company believes a liability is both probable and reasonably estimable, the Company records a liability in the period for which it makes this determination. There is no pending or threatened legal proceeding to which the Company is a party that, in the Company’s opinion, is likely to have a material adverse effect on its condensed consolidated financial statements; however, the results of litigation and claims are inherently unpredictable. Regardless of the outcome, litigation can have an adverse impact on the Company’s business because of defense and settlement costs, diversion of management resources, and other factors. In addition, the expense of litigation and the timing of this expense from period to period are difficult to estimate, subject to change and could adversely affect the Company’s condensed consolidated financial statements. Warranties and Indemnification The Company’s cloud computing services are typically warranted to perform in a manner consistent with general industry standards that are reasonably applicable and materially in accordance with the Company’s online help documentation under normal use and circumstances. The Company’s arrangements generally include certain provisions for indemnifying customers against liabilities if its products or services infringe a third party’s intellectual property rights. In addition, for its Falcon Complete customers, the Company offers a limited warranty, subject to certain conditions, to cover certain costs incurred by the customer in case of a cybersecurity breach. The Company has entered into an insurance policy to reduce its potential liability arising from this limited warranty arrangement. To date, the Company has not incurred any material costs because of such obligations and has not accrued any liabilities related to such obligations in the condensed consolidated financial statements. The Company has also agreed to indemnify its directors and certain executive officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by the Company, arising out of that person’s services as the Company’s director or officer or that person’s services provided to any other company or enterprise at the Company’s request. The Company maintains director and officer insurance coverage that would generally enable the Company to recover a portion of any future amounts paid. The Company may also be subject to indemnification obligations by law with respect to the actions of its employees under certain circumstances and in certain jurisdictions. No liabilities have been accrued associated with this indemnification provision as of October 31, 2021 or January 31, 2021. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Oct. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Subscription and Professional Services Revenue from Related Parties During the three and nine months ended October 31, 2021 and October 31, 2020, certain investors and companies with whom the Company’s Board of Directors are affiliated with, purchased subscriptions and professional services. The Company recorded revenue from subscriptions and professional services from related parties of $1.8 million and $1.1 million during the three months ended October 31, 2021 and October 31, 2020, respectively, and $5.4 million and $3.0 million during the nine months ended October 31, 2021 and October 31, 2020, respectively. Accounts receivable associated with these related parties was $0.7 million and $1.3 million as of October 31, 2021 and January 31, 2021, respectively. Accounts Payable to Related Parties |
Acquisitions
Acquisitions | 9 Months Ended |
Oct. 31, 2021 | |
Business Combination And Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Humio Limited On March 5, 2021, the Company acquired 100% of the equity interest of Humio Limited (“Humio”), a privately-held company that is a leading provider of high-performance cloud log management and observability technology. The total consideration transferred was $370.3 million which consisted of $353.8 million in cash, net of $12.5 million cash acquired, and $4.0 million representing the fair value of replacement equity awards attributable to pre-acquisition service. The purchase price was allocated, on a preliminary basis, to identified intangible assets, which include developed technology, customer relationships, and trade names, of $75.6 million, net tangible assets acquired of $3.4 million, and goodwill of $291.3 million allocated to the Company’s one reporting unit, representing the excess of the purchase price over the fair value of net tangible and intangible assets acquired. The goodwill was primarily attributable to the assembled workforce of Humio, planned growth in new markets, and synergies expected to be achieved from the integration of Humio. Goodwill is not deductible for income tax purposes. Per the terms of the share purchase agreement with Humio, certain unvested stock options held by Humio employees were canceled and exchanged for replacement stock options under the 2019 Plan. Additionally, certain shares of stock issued pursuant to share-based compensation awards to entities affiliated with certain Humio employees were exchanged for replacement RSAs of the Company, which are subject to future vesting. The portion of the fair value of the replacement equity awards associated with pre-acquisition service of Humio’s employees represented a component of the total purchase consideration. The remaining fair value of these issued awards is subject to the recipients’ continued service and thus were excluded from the purchase price. In addition, Humio employees were granted RSUs and PSUs under the 2019 Plan. The awards which are subject to continued service will be recognized ratably as stock-based compensation expense over the requisite service period. The awards which are based on specified performance targets will be recognized under the accelerated attribution method. The following table sets forth the preliminary fair value of the identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (dollar in thousands): Fair Value Useful Life (in months) Developed technology $ 68,800 96 Customer relationships 5,400 96 Trade names 1,400 24 Total intangible assets acquired $ 75,600 The Company incurred non-consideration acquisition expense of $0.3 million and $5.0 million during the three and nine months ended October 31, 2021, respectively. The acquisition costs are recorded in general and administrative expenses in the Company’s condensed consolidated statement of operations. The results of operations of Humio have been included in the Company’s condensed consolidated financial statements from the date of acquisition. The acquisition of Humio did not have a material impact on the Company’s condensed consolidated financial statements, and therefore historical and pro forma disclosures have not been presented. Preempt Security, Inc. On September 30, 2020, the Company acquired 100% of the equity interest of Preempt Security, Inc. (“Preempt Security”), a privately-held Delaware corporation that developed real-time access control and threat prevention technology. The acquisition has been accounted for as a business combination. The total consideration transferred was $91.2 million which consisted of $87.4 million in cash and $3.8 million representing the fair value of replacement equity awards attributable to pre-acquisition service. The Company completed the valuation of the acquired identified intangible assets as of September 30, 2020. The purchase price was allocated to identified intangible assets, which include developed technology, customer relationships and trade names, of $16.4 million, net tangible assets acquired of $(0.5) million and goodwill of $75.3 million allocated to the Company’s one reporting segment, representing the excess of the purchase price over the fair value of net tangible and intangible assets acquired. The goodwill was primarily attributable to the assembled workforce of Preempt Security, planned growth in new markets and synergies expected to be achieved from the integration of Preempt Security. Goodwill is not deductible for income tax purposes. Per the terms of the merger agreement with Preempt Security, certain unvested stock options held by Preempt Security employees were canceled and exchanged for replacement stock options under the 2019 Plan. Additionally, certain shares of stock issued pursuant to share-based compensation awards to key employees of Preempt Security were canceled and exchanged for replacement RSUs of the Company, which are subject to future vesting. The portion of the fair value of the replacement equity awards associated with pre-acquisition service of Preempt Security’s employees represented a component of the total purchase consideration. The remaining fair value of these issued awards is subject to the recipients’ continued service with the Company and the achievement of specified performance targets, and thus were excluded from the purchase price. The awards which are subject to continued service will be recognized ratably as stock-based compensation expense over the requisite service period. The awards which are based on specified performance targets will be recognized under the accelerated attribution method. The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (dollar in thousands): Fair Value Useful Life (in months) Developed technology $ 13,200 60 Customer relationships 3,100 60 Trade names 85 12 Total intangible assets acquired $ 16,385 The Company did not incur non-consideration acquisition expense during the three months ended October 31, 2021. The Company incurred non-consideration acquisition expense of $0.3 million during the nine months ended October 31, 2021. The acquisition costs are recorded in general and administrative expenses in the Company’s condensed consolidated statement of operations. The results of operations of Preempt Security have been included in the Company’s condensed consolidated financial statements from the date of acquisition. The acquisition of Preempt Security did not have a material impact on the Company’s condensed consolidated financial statements, and therefore historical and pro forma disclosures have not been presented. |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 9 Months Ended |
Oct. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Common Stockholders | . Net Loss Per Share Attributable to Common Stockholders Basic and diluted net loss per share attributable to CrowdStrike’s common stockholders is computed in conformity with the two-class method required for participating securities. Basic net loss per share attributable to CrowdStrike common stockholders is computed by dividing the net loss attributable to CrowdStrike by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is the same as basic net loss per share because the effects of potentially dilutive items were antidilutive given the Company’s net loss position in the periods presented. The rights of the holders of Class A and Class B common stock are identical, except with the respect to voting and conversion rights. As such, the undistributed earnings are allocated equally to each share of common stock without class distinction and the resulting basic and diluted net loss per share attributable to CrowdStrike common stockholders are the same for shares of Class A and Class B common stock. The following table sets forth the computation of basic and diluted net loss per share attributable to CrowdStrike common stockholders (in thousands, except per share data): Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 Numerator: Net loss attributable to Class A and Class B CrowdStrike common stockholders $ (50,455) $ (24,531) $ (192,822) $ (73,627) Denominator: Weighted-average shares used in computing net loss per share attributable to Class A and Class B of CrowdStrike common stockholders, basic and diluted 228,293 219,401 226,292 216,432 Net loss per share attributable to Class A and Class B CrowdStrike common stockholders, basic and diluted $ (0.22) $ (0.11) $ (0.85) $ (0.34) The potential shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive are as follows (in thousands): October 31, October 31, Shares of common stock subject to repurchase from outstanding stock options 279 638 RSUs and PSUs subject to future vesting 8,472 8,747 Shares of common stock issuable from stock options 4,421 8,521 Share purchase rights under the employee stock purchase plan 558 1,131 Potential common shares excluded from diluted net loss per share 13,730 19,037 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Oct. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 29, 2021, the Company entered into an agreement to acquire all of the ownership interests in Secure Circle LLC (“Secure Circle”), a SaaS-based cybersecurity service that extends Zero Trust security to data on the endpoint. The acquisition of Secure Circle closed on November 29, 2021 and the Company paid approximately $60.8 million in cash subject to customary net working capital and purchase price adjustments. Due to the proximity of the closing date and the issuance of these condensed consolidated financial statements, the initial accounting for the acquisition of Secure Circle is incomplete, and therefore the Company is unable to disclose certain information required by ASC 805, including any provisional amounts recognized as of the acquisition date for each major class of assets acquired, liabilities assumed, and goodwill. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP have been condensed or omitted, and accordingly the balance sheet as of January 31, 2021, and related disclosures, have been derived from the audited consolidated financial statements at that date but do not include all of the information required by U.S. GAAP for complete consolidated financial statements. These unaudited condensed consolidated financial statements have been prepared on the same basis as the Company’s annual consolidated financial statements and, in the opinion of management, reflect all normal recurring adjustments that are necessary for the fair statement of the Company’s condensed consolidated financial information. The results of operations for the three and nine months ended October 31, 2021 are not necessarily indicative of the results to be expected for the year ending January 31, 2022 or for any other interim period or for any other future year. |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the Company’s condensed consolidated financial statements and accompanying notes. These estimates are based on information available as of the date of the condensed consolidated financial statements. On a regular basis, management evaluates these estimates and assumptions. Actual results may differ from these estimates and such difference could be material to the Company’s condensed consolidated financial statements. Estimates and assumptions used by management include, but are not limited to, revenue recognition, the allowance for credit losses, the useful lives of long-lived assets, the fair values of strategic investments, the period of benefit for deferred contract acquisition costs, the discount rate used for operating leases, the recognition and disclosure of contingent liabilities, income taxes, stock-based compensation, the fair value of assets acquired and liabilities assumed for business combinations, and the fair value and effective interest rate for the Senior Notes. Due to the Coronavirus (“COVID-19”) pandemic, there has been uncertainty and disruption in the global economy and financial markets. The Company is not aware of any specific event or circumstance that would require a material update to its estimates or judgments or an adjustment of the carrying value of its assets or liabilities as of October 31, 2021. While there was not a material impact to the Company’s condensed consolidated financial statements as of and for the three and nine months ended October 31, 2021, these estimates may change, as new events occur and additional information is obtained, as well as other |
Concentration of Credit Risk and Geographic Information | Concentration of Credit Risk and Geographic Information The Company generates revenue from the sale of subscriptions to access its cloud platform and professional services. The Company’s sales team, along with its channel partner network of system integrators and value-added resellers (collectively, “channel partners”), sells the Company’s services worldwide to organizations of all sizes. |
Recently Adopted and Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (the “FASB”) issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which enhances and simplifies various aspects of the income tax accounting guidance, including requirements such as tax basis step-up in goodwill obtained in a transaction that is not a business combination, ownership changes in investments, and interim-period accounting for enacted changes in tax law. The Company adopted this guidance on February 1, 2021, which did not have a material effect on its condensed consolidated financial statements. Recently Issued Accounting Pronouncements In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires that an entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606 as if it had originated the contracts. For public business entities, this ASU is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The Company is currently evaluating the impact of this ASU on the Company’s consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of concentration of credit risk | Channel partners or direct customers who represented 10% or more of the Company’s accounts receivable were as follows: October 31, January 31, 2021 2021 Channel partner A (1) 11 % 10 % Channel partner B 10 % 5 % Customer A (1) — % 17 % _______________________________ (1) Channel Partner A and Customer A are controlled by the same company. |
Investments and Fair Value Me_2
Investments and Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of company's fair value hierarchy for its financial assets and liabilities that are measured at fair value on a recurring basis | The Company’s fair value hierarchy for its financial assets and liabilities that are measured at fair value on a recurring basis are as follows (in thousands): October 31, 2021 January 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash equivalents (1) Money market funds $ 300,020 $ — $ — $ 300,020 $ — $ — $ — $ — Total assets $ 300,020 $ — $ — $ 300,020 $ — $ — $ — $ — __________________________________ (1) Included in “Cash and cash equivalents” on the condensed consolidated balance sheets. |
Summary of changes in strategic investments | The following summarizes the changes in strategic investments (in thousands): October 31, January 31, 2021 2021 Total initial cost $ 18,309 $ 2,500 Unrealized gains due to changes in fair value 4,356 — Carrying value $ 22,665 $ 2,500 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of prepaid expenses and other current assets | Prepaid expenses and other current assets consisted of the following (in thousands): October 31, January 31, Prepaid software licenses $ 21,262 $ 20,596 Prepaid expenses 17,068 12,220 Prepaid marketing 9,889 10,852 Other current assets 7,975 4,566 Prepaid hosting services 4,476 5,383 Prepaid expenses and other current assets $ 60,670 $ 53,617 |
Property, plant and equipment | Property and equipment, net consisted of the following (in thousands): October 31, January 31, Data center and other computer equipment $ 187,777 $ 146,220 Capitalized internal-use software and website development 60,053 44,358 Leasehold improvements 22,302 19,733 Purchased software 5,266 3,211 Furniture and equipment 7,050 6,498 Construction in process 86,832 35,528 369,280 255,548 Less: Accumulated depreciation and amortization (127,056) (88,534) Property and equipment, net $ 242,224 $ 167,014 |
Schedule of total intangible assets, net | Intangible Assets, Net Total intangible assets, net consisted of the following (dollar in thousands): October 31, 2021 Weighted-Average Gross Carrying Amount Accumulated Amortization Net Amount (in months) Developed technology $ 82,396 $ 8,822 $ 73,574 84 Customer relationships 9,068 1,556 7,512 74 Other acquired intangible assets 2,401 617 1,784 75 Total $ 93,865 $ 10,995 $ 82,870 January 31, 2021 Weighted-Average Gross Carrying Amount Accumulated Amortization Net Amount (in months) Developed technology $ 14,513 $ 2,193 $ 12,320 56 Customer relationships 3,769 649 3,120 54 Other acquired intangible assets 399 162 237 185 Total $ 18,681 $ 3,004 $ 15,677 |
Schedule of estimated aggregate future amortization expense of intangible assets | The estimated aggregate future amortization expense of intangible assets as of October 31, 2021 is as follows (in thousands): Total Fiscal 2022 (remaining three months) $ 3,323 Fiscal 2023 13,253 Fiscal 2024 12,558 Fiscal 2025 12,474 Fiscal 2026 11,387 Thereafter 29,875 Total amortization expense $ 82,870 |
Schedule of goodwill | The changes in goodwill during the nine months ended October 31, 2021 consisted of the following (in thousands): Amounts Goodwill as of January 31, 2021 $ 83,566 Goodwill acquired (1) 291,273 Foreign currency translation (950) Goodwill as of October 31, 2021 $ 373,889 __________________________________ (1) Goodwill acquired resulted from the acquisition of Humio. Refer to Note 12 for additional information. |
Schedule of other assets, noncurrent | Other assets, noncurrent consisted of the following (in thousands): October 31, January 31, Other assets, noncurrent $ 11,441 $ 8,627 Deferred finance cost, noncurrent 4,499 4,355 Deferred income tax asset, noncurrent 3,065 1,328 Deposits, noncurrent 2,676 2,802 Other assets, noncurrent $ 21,681 $ 17,112 |
Summary of accrued expenses | Accrued expenses consisted of the following (in thousands): October 31, January 31, Web hosting services $ 29,881 $ 14,187 Other accrued expenses 15,138 11,372 Accrued purchases of property and equipment 11,605 687 Accrued marketing 9,791 14,592 Accrued legal and accounting 5,593 4,570 Accrued interest expense 4,750 5,709 Accrued expenses $ 76,758 $ 51,117 |
Summary of accrued payroll and benefits | Accrued payroll and benefits consisted of the following (in thousands): October 31, January 31, Accrued commissions $ 36,439 $ 32,300 Accrued payroll and related expenses 22,289 16,528 Employee Stock Purchase Plan 20,361 10,969 Accrued bonuses 15,649 12,110 Accrued payroll and benefits $ 94,738 $ 71,907 |
Other current liabilities | Other current liabilities consisted of the following (in thousands): October 31, January 31, Income tax payable $ 62,678 $ 2,639 Other current liabilities 12,850 9,652 Accrued taxes 1,632 2,837 Customer deposits 1,447 2,371 Other current liabilities $ 78,607 $ 17,499 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Leases [Abstract] | |
Schedule of component of lease costs | The component of lease costs was as follows (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 Lease cost Operating lease cost $ 2,782 $ 2,677 $ 8,393 $ 7,631 Short-term lease cost 547 492 1,508 1,477 Variable lease cost 1,472 774 3,208 2,128 Total lease cost $ 4,801 $ 3,943 $ 13,109 $ 11,236 |
Summary of future minimum payments under noncancelable operating leases | The maturities of the Company’s non-cancelable operating lease liabilities are as follows (in thousands): October 31, 2021 Fiscal 2022 (remaining three months) $ 1,489 Fiscal 2023 11,895 Fiscal 2024 11,861 Fiscal 2025 10,764 Fiscal 2026 4,811 Thereafter 608 Total operating lease payments 41,428 Less: imputed interest (3,827) Present value of operating lease liabilities $ 37,601 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of assumptions used to estimate fair value on date of grant | The fair value of each option was estimated on the date of grant using the following assumptions during the period: Nine Months Ended October 31, 2021 2020 Expected term (in years) 3.8 - 5.6 3.2 - 6.1 Risk-free interest rate 0.6% - 1.0% 0.2% - 0.4% Expected stock price volatility 36.1% - 37.1% 35.8% - 37.3% Dividend yield — % — % The following table summarizes the assumptions used in the Black-Scholes option-pricing model to determine fair value of the Company’s common shares to be issued under the ESPP for the offering periods beginning in June 2019: Nine Months Ended October 31, 2021 2020 Expected term (in years) 0.5 - 2.0 0.5 - 2.0 Risk-free interest rate 0.0% - 1.9% 0.2% - 2.0% Expected stock price volatility 33.0% - 55.9% 30.1% - 54.3% Dividend yield — % — % |
Schedule of stock option activity | The following table is a summary of stock option activity for the nine months ended October 31, 2021: Number of Weighted-Average (in thousands) Options outstanding at January 31, 2021 6,646 $ 8.24 Granted 93 $ 3.19 Exercised (2,136) $ 5.99 Canceled (182) $ 30.31 Options outstanding at October 31, 2021 4,421 $ 8.32 Options vested and expected to vest at October 31, 2021 4,421 $ 8.32 Options exercisable at October 31, 2021 2,871 $ 6.56 |
Share-based payment arrangement, restricted stock unit, performance stock unit, and special performance stock unit award, activity | The following table is a summary of RSUs, PSUs and the Special PSU Award activities for the nine months ended October 31, 2021: Number of Weighted- (in thousands) RSUs, PSUs and the Special PSU Award outstanding at January 31, 2021 8,449 $ 59.27 Granted 2,964 $ 229.47 Vested (2,680) $ 58.59 Performance adjustment (1) 153 $ 58.15 Forfeited (414) $ 99.42 RSUs, PSUs and the Special PSU Award outstanding at October 31, 2021 8,472 $ 117.05 RSUs, PSUs, and the Special PSU Award expected to vest at October 31, 2021 8,472 $ 117.05 __________________________________ |
Schedule of stock-based compensation expense | Stock-based compensation expense included in the condensed consolidated statements of operations is as follows (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 Subscription cost of revenue $ 5,969 $ 3,226 $ 15,548 $ 7,856 Professional services cost of revenue 2,546 1,551 6,963 3,947 Sales and marketing 25,499 12,811 68,178 35,101 Research and development 27,333 11,771 70,942 25,700 General and administrative 25,319 11,251 55,684 29,357 Total stock-based compensation expense $ 86,666 $ 40,610 $ 217,315 $ 101,961 |
Revenue, Deferred Revenue and_2
Revenue, Deferred Revenue and Remaining Performance Obligations (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Summary of revenue from contracts by type of customer | The following table summarizes the revenue from contracts by type of customer (in thousands, except percentages): Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 Amount % Revenue Amount % Revenue Amount % Revenue Amount % Revenue Channel Partners $ 282,774 74 % $ 175,837 76 % $ 761,597 75 % $ 459,529 75 % Direct Customers 97,277 26 % 56,623 24 % 258,987 25 % 149,980 25 % Total revenue $ 380,051 100 % $ 232,460 100 % $ 1,020,584 100 % $ 609,509 100 % |
Summary of revenue by region based on the shipping address of customers | The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use the Company’s platform or service (in thousands, except percentages): Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 Amount % Revenue Amount % Revenue Amount % Revenue Amount % Revenue United States $ 276,698 73 % $ 167,741 72 % $ 741,168 73 % $ 438,955 72 % Europe, Middle East, and Africa 50,721 13 % 33,192 14 % 138,920 14 % 86,785 14 % Asia Pacific 37,265 10 % 20,551 9 % 99,263 9 % 53,186 9 % Other 15,367 4 % 10,976 5 % 41,233 4 % 30,583 5 % Total revenue $ 380,051 100 % $ 232,460 100 % $ 1,020,584 100 % $ 609,509 100 % |
Summary of changes in deferred revenue | Changes in deferred revenue were as follows (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 Carrying Amount Beginning Balance $ 1,164,357 $ 689,840 $ 911,895 $ 571,168 Additions to deferred revenue 503,890 305,294 1,396,885 801,015 Recognition of deferred revenue (380,051) (232,460) (1,020,584) (609,509) Ending Balance $ 1,288,196 $ 762,674 $ 1,288,196 $ 762,674 |
Summary of the activity of deferred contract acquisition costs | The following table summarizes the activity of deferred contract acquisition costs (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 Beginning balance $ 235,913 $ 135,023 $ 198,756 $ 114,206 Capitalization of contract acquisition costs 64,325 35,753 151,901 84,741 Amortization of deferred contract acquisition costs (29,293) (16,769) (79,712) (44,940) Ending balance $ 270,945 $ 154,007 $ 270,945 $ 154,007 Deferred contract acquisition costs, current $ 108,636 $ 62,422 $ 108,636 $ 62,422 Deferred contract acquisition costs, noncurrent 162,309 91,585 162,309 91,585 Total deferred contract acquisition costs $ 270,945 $ 154,007 $ 270,945 $ 154,007 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of noncancelable purchase obligations | A summary of noncancellable purchase obligations in excess of one year as of October 31, 2021 with expected date of payment is as follows (in thousands): Total Fiscal 2022 (remaining three months) $ 23,806 Fiscal 2023 57,566 Fiscal 2024 54,492 Fiscal 2025 10,047 Fiscal 2026 7,299 Thereafter 2,546 Total purchase commitments $ 155,756 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Business Combination And Asset Acquisition [Abstract] | |
Schedule of recognized identified assets acquired and liabilities assumed | The following table sets forth the preliminary fair value of the identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (dollar in thousands): Fair Value Useful Life (in months) Developed technology $ 68,800 96 Customer relationships 5,400 96 Trade names 1,400 24 Total intangible assets acquired $ 75,600 The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (dollar in thousands): Fair Value Useful Life (in months) Developed technology $ 13,200 60 Customer relationships 3,100 60 Trade names 85 12 Total intangible assets acquired $ 16,385 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted net loss per share attributable to common stockholders" | The following table sets forth the computation of basic and diluted net loss per share attributable to CrowdStrike common stockholders (in thousands, except per share data): Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 Numerator: Net loss attributable to Class A and Class B CrowdStrike common stockholders $ (50,455) $ (24,531) $ (192,822) $ (73,627) Denominator: Weighted-average shares used in computing net loss per share attributable to Class A and Class B of CrowdStrike common stockholders, basic and diluted 228,293 219,401 226,292 216,432 Net loss per share attributable to Class A and Class B CrowdStrike common stockholders, basic and diluted $ (0.22) $ (0.11) $ (0.85) $ (0.34) |
Schedule of antidilutive securities excluded from computation of earnings per share | The potential shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive are as follows (in thousands): October 31, October 31, Shares of common stock subject to repurchase from outstanding stock options 279 638 RSUs and PSUs subject to future vesting 8,472 8,747 Shares of common stock issuable from stock options 4,421 8,521 Share purchase rights under the employee stock purchase plan 558 1,131 Potential common shares excluded from diluted net loss per share 13,730 19,037 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - Customers - Accounts receivable | 9 Months Ended | 12 Months Ended |
Oct. 31, 2021 | Jan. 31, 2021 | |
Channel partner A | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 11.00% | 10.00% |
Channel partner B | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 10.00% | 5.00% |
Customer A | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 0.00% | 17.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Narrative (Details) | 1 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Oct. 31, 2021 | |
Service-based vesting | Vesting one | ||
Concentration Risk [Line Items] | ||
Vesting percentage | 10.00% | 25.00% |
Investments and Fair Value Me_3
Investments and Fair Value Measurements - Financial Assets and Liabilities (Details) - Recurring - USD ($) $ in Thousands | Oct. 31, 2021 | Jan. 31, 2021 |
Assets | ||
Total assets | $ 300,020 | $ 0 |
Level 1 | ||
Assets | ||
Total assets | 300,020 | 0 |
Level 2 | ||
Assets | ||
Total assets | 0 | 0 |
Level 3 | ||
Assets | ||
Total assets | 0 | 0 |
Money market funds | ||
Assets | ||
Cash equivalents | 300,020 | 0 |
Money market funds | Level 1 | ||
Assets | ||
Cash equivalents | 300,020 | 0 |
Money market funds | Level 2 | ||
Assets | ||
Cash equivalents | 0 | 0 |
Money market funds | Level 3 | ||
Assets | ||
Cash equivalents | $ 0 | $ 0 |
Investments and Fair Value Me_4
Investments and Fair Value Measurements - Strategic Investments (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Jan. 31, 2021 |
Fair Value Disclosures [Abstract] | ||
Total initial cost | $ 18,309 | $ 2,500 |
Unrealized gains due to changes in fair value | 4,356 | 0 |
Carrying value | $ 22,665 | $ 2,500 |
Balance Sheet Components - Prep
Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Jan. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid software licenses | $ 21,262 | $ 20,596 |
Prepaid expenses | 17,068 | 12,220 |
Prepaid marketing | 9,889 | 10,852 |
Other current assets | 7,975 | 4,566 |
Prepaid hosting services | 4,476 | 5,383 |
Prepaid expenses and other current assets | $ 60,670 | $ 53,617 |
Balance Sheet Components - Prop
Balance Sheet Components - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Jan. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 369,280 | $ 255,548 |
Less: Accumulated depreciation and amortization | (127,056) | (88,534) |
Property and equipment, net | 242,224 | 167,014 |
Data center and other computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 187,777 | 146,220 |
Capitalized internal-use software and website development | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 60,053 | 44,358 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 22,302 | 19,733 |
Purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 5,266 | 3,211 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 7,050 | 6,498 |
Construction in process | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 86,832 | $ 35,528 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | Jan. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Depreciation and amortization | $ 14,500,000 | $ 10,100,000 | $ 39,247,000 | $ 27,728,000 | |
Impairments of internal use software | 0 | 0 | 0 | 0 | |
Capitalized amount of internal use software | 9,000,000 | 3,500,000 | 22,800,000 | 8,200,000 | |
Amortization expense associated with internal use software | 3,300,000 | 1,900,000 | 8,600,000 | 5,600,000 | |
Net book value of capitalized internal use software | 34,500,000 | 34,500,000 | $ 20,100,000 | ||
Amortization of intangible assets | 3,400,000 | $ 400,000 | $ 9,072,000 | $ 579,000 | |
Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful lives | 2 years | ||||
Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful lives | 20 years | ||||
Other Current Liabilities | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Deferred payroll taxes | 5,100,000 | $ 5,100,000 | 5,100,000 | ||
Other Noncurrent Liabilities | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Deferred payroll taxes | $ 5,100,000 | 5,100,000 | $ 5,100,000 | ||
Data center and other computer equipment | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Equipment purchased but not yet placed into service | $ 75,800,000 |
Balance Sheet Components - Inta
Balance Sheet Components - Intangible Assets, Net (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Oct. 31, 2021 | Jan. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 93,865 | $ 18,681 |
Accumulated Amortization | 10,995 | 3,004 |
Net Amount | 82,870 | 15,677 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 82,396 | 14,513 |
Accumulated Amortization | 8,822 | 2,193 |
Net Amount | $ 73,574 | $ 12,320 |
Weighted-Average Remaining Useful Life | 84 months | 56 months |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 9,068 | $ 3,769 |
Accumulated Amortization | 1,556 | 649 |
Net Amount | $ 7,512 | $ 3,120 |
Weighted-Average Remaining Useful Life | 74 months | 54 months |
Other acquired intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 2,401 | $ 399 |
Accumulated Amortization | 617 | 162 |
Net Amount | $ 1,784 | $ 237 |
Weighted-Average Remaining Useful Life | 75 months | 185 months |
Balance Sheet Components - Futu
Balance Sheet Components - Future Amortization Expense (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Jan. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Fiscal 2022 (remaining three months) | $ 3,323 | |
2023 | 13,253 | |
2024 | 12,558 | |
2025 | 12,474 | |
2026 | 11,387 | |
Thereafter | 29,875 | |
Net Amount | $ 82,870 | $ 15,677 |
Balance Sheet Components - Good
Balance Sheet Components - Goodwill Rollforward (Details) $ in Thousands | 9 Months Ended |
Oct. 31, 2021USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | $ 83,566 |
Goodwill acquired | 291,273 |
Foreign currency translation | (950) |
Goodwill, Ending Balance | $ 373,889 |
Balance Sheet Components - Othe
Balance Sheet Components - Other Noncurrent Assets (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Jan. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Other assets, noncurrent | $ 11,441 | $ 8,627 |
Deferred finance cost, noncurrent | 4,499 | 4,355 |
Deferred income tax asset, noncurrent | 3,065 | 1,328 |
Deposits, noncurrent | 2,676 | 2,802 |
Other long-term assets | $ 21,681 | $ 17,112 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Expenses (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Jan. 31, 2021 |
Accrued Expenses | ||
Web hosting services | $ 29,881 | $ 14,187 |
Other accrued expenses | 15,138 | 11,372 |
Accrued purchases of property and equipment | 11,605 | 687 |
Accrued marketing | 9,791 | 14,592 |
Accrued legal and accounting | 5,593 | 4,570 |
Accrued interest expense | 4,750 | 5,709 |
Accrued expenses | 76,758 | 51,117 |
Accrued Payroll and Benefits | ||
Accrued commissions | 36,439 | 10,969 |
Accrued payroll and related expenses | 22,289 | 32,300 |
Employee Stock Purchase Plan | 20,361 | 12,110 |
Accrued bonuses | 15,649 | 16,528 |
Accrued payroll and benefits | $ 94,738 | $ 71,907 |
Balance Sheet Components - Ot_2
Balance Sheet Components - Other Current Liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Jan. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Income tax payable | $ 62,678 | $ 2,639 |
Other current liabilities | 12,850 | 9,652 |
Accrued taxes | 1,632 | 2,837 |
Customer deposits | 1,447 | 2,371 |
Other current liabilities | $ 78,607 | $ 17,499 |
Debt (Details)
Debt (Details) | Jan. 20, 2021USD ($) | Jan. 04, 2021USD ($) | Oct. 31, 2021USD ($) | Oct. 31, 2021USD ($) | Jan. 31, 2021USD ($) | Apr. 30, 2019USD ($) |
A&R Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Minimum interest coverage ratio | 3 | 3 | ||||
Maximum senior secured leverage ratio | 3 | 3 | ||||
Maximum total leverage ratio | 5.50 | 5.50 | ||||
Maximum total leverage ratio, stepped down | 3.50 | 3.50 | ||||
A&R Credit Agreement | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Commitment fee | 0.15% | |||||
A&R Credit Agreement | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Commitment fee | 0.25% | |||||
3.00% Senior Notes | Senior Notes | ||||||
Line of Credit Facility [Line Items] | ||||||
Aggregate principal amount | $ 750,000,000 | |||||
Stated interest rate | 3.00% | |||||
Proceeds from issuance of Senior Notes, net of debt financing costs | $ 738,000,000 | |||||
Payment for underwriting commissions | 9,400,000 | |||||
Payments of financing costs | $ 2,600,000 | |||||
Interest expense, amortization of debt issuance costs and accretion of debt discount | $ 6,000,000 | $ 18,000,000 | ||||
Debt instrument, fair value | 742,800,000 | 742,800,000 | ||||
3.00% Senior Notes | Senior Notes | Debt Instrument, Redemption, Period One | ||||||
Line of Credit Facility [Line Items] | ||||||
Percentage of original principal amount | 40.00% | |||||
3.00% Senior Notes | Senior Notes | Debt Instrument, Redemption, Period Two | ||||||
Line of Credit Facility [Line Items] | ||||||
Redemption percentage | 101.50% | |||||
3.00% Senior Notes | Senior Notes | Debt Instrument, Redemption, Period Three | ||||||
Line of Credit Facility [Line Items] | ||||||
Redemption percentage | 100.75% | |||||
3.00% Senior Notes | Senior Notes | Debt Instrument, Redemption, Period Four | ||||||
Line of Credit Facility [Line Items] | ||||||
Redemption percentage | 100.00% | |||||
3.00% Senior Notes | Senior Notes | Debt Instrument, Redemption, Period Five | ||||||
Line of Credit Facility [Line Items] | ||||||
Redemption percentage | 101.00% | |||||
3.00% Senior Notes | Senior Notes | Plus "Make Whole" Premium | Debt Instrument, Redemption, Period One | ||||||
Line of Credit Facility [Line Items] | ||||||
Redemption percentage | 100.00% | |||||
3.00% Senior Notes | Senior Notes | Proceeds From Equity Offering, Provided Principal Amount of Redemptions Does Not Exceed 40% | Debt Instrument, Redemption, Period One | ||||||
Line of Credit Facility [Line Items] | ||||||
Redemption percentage | 103.00% | |||||
Revolving line of credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 150,000,000 | |||||
Unused standby letter of credit | $ 0 | $ 0 | $ 0 | |||
Revolving line of credit | A&R Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 750,000,000 | |||||
Incremental borrowing facility | 250,000,000 | |||||
Letter of credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | 10,000,000 | |||||
Letter of credit | A&R Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | 100,000,000 | |||||
Swingline | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 10,000,000 | |||||
Swingline | A&R Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 50,000,000 | |||||
Eurodollar Loans | A&R Credit Agreement | LIBOR | ||||||
Line of Credit Facility [Line Items] | ||||||
Margin | 0.00% | |||||
Eurodollar Loans | A&R Credit Agreement | LIBOR | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Margin | 1.50% | |||||
Eurodollar Loans | A&R Credit Agreement | LIBOR | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Margin | 2.00% | |||||
ABR Loans | A&R Credit Agreement | Federal funds rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Margin | 0.50% | |||||
ABR Loans | A&R Credit Agreement | Eurodollar rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Margin | 1.00% | |||||
ABR Loans | A&R Credit Agreement | Eurodollar rate | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Margin | (0.25%) | |||||
ABR Loans | A&R Credit Agreement | Eurodollar rate | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Margin | 0.25% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | Jan. 31, 2021 | |
Income Tax Examination [Line Items] | |||||
Provision for income taxes | $ 4,473 | $ 451 | $ 58,773 | $ 1,928 | |
Effective tax rate | (9.70%) | (1.90%) | (43.80%) | (2.70%) | |
Gross unrecognized tax benefits | $ 39,500 | $ 39,500 | $ 24,400 | ||
Unrecognized tax benefits including interest and penalties | 1,300 | 1,300 | $ 600 | ||
Tax reclassifications | $ 21,600 | ||||
Foreign Tax Authority | |||||
Income Tax Examination [Line Items] | |||||
Provision for income taxes | $ 48,800 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Leases [Abstract] | ||||
Cash payments | $ 2,900,000 | $ 2,700,000 | $ 8,800,000 | $ 8,100,000 |
Operating lease liabilities arising from obtaining operating right of-use assets | $ 1,500,000 | 0 | $ 4,600,000 | 6,200,000 |
Weighted average remaining lease term | 3 years 4 months 24 days | 3 years 4 months 24 days | ||
Weighted average discount rate | 5.40% | 5.40% | ||
Sublease income | $ 0 | $ 0 | $ 0 | $ 0 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Leases [Abstract] | ||||
Operating lease cost | $ 2,782 | $ 2,677 | $ 8,393 | $ 7,631 |
Short-term lease cost | 547 | 492 | 1,508 | 1,477 |
Variable lease cost | 1,472 | 774 | 3,208 | 2,128 |
Total lease cost | $ 4,801 | $ 3,943 | $ 13,109 | $ 11,236 |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) $ in Thousands | Oct. 31, 2021USD ($) |
Leases [Abstract] | |
Fiscal 2022 (remaining three months) | $ 1,489 |
2023 | 11,895 |
2024 | 11,861 |
2025 | 10,764 |
2026 | 4,811 |
Thereafter | 608 |
Total operating lease payments | 41,428 |
Less: imputed interest | (3,827) |
Present value of operating lease liabilities | $ 37,601 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Thousands | Aug. 28, 2021installmentshares | May 31, 2019purchasePeriodshares | Sep. 30, 2018trancheinstallment | Oct. 31, 2021USD ($)shares | Oct. 31, 2020USD ($)$ / sharesshares | Oct. 31, 2021USD ($)changeInContribution$ / sharesshares | Oct. 31, 2020USD ($)$ / sharesshares | Jan. 31, 2021USD ($)shares | May 31, 2021shares |
Stock Based Compensation | |||||||||
Options unvested (in shares) | shares | 378,031 | 378,031 | |||||||
Aggregate intrinsic value of options vested and exercisable | $ 790,100 | $ 790,100 | $ 711,400 | ||||||
Weighted-average remaining contractual term of options vested and exercisable (in years) | 6 years | 6 years 4 months 24 days | |||||||
Options granted (in shares) | shares | 0 | 93,000 | |||||||
Weighted-average grant date fair value of options granted (in usd per share) | $ / shares | $ 121 | $ 180.08 | $ 66.31 | ||||||
Total intrinsic value of options exercised | $ 94,900 | $ 162,400 | $ 483,300 | $ 516,400 | |||||
Aggregate intrinsic value of stock options outstanding | 1,200,000 | $ 1,200,000 | $ 1,400,000 | ||||||
Weighted-average remaining contractual term of stock options outstanding (in years) | 6 years 4 months 24 days | 7 years | |||||||
Total unrecognized stock-based compensation expenses related to unvested options | $ 21,000 | $ 21,000 | $ 24,300 | ||||||
Issuance of common stock upon exercise of options (in shares) | shares | 0 | 0 | 0 | 0 | |||||
Number of shares of common stock related to early exercised stock options subject to repurchase (in shares) | shares | 279,409 | 279,409 | 548,028 | ||||||
Value of common stock related to early exercised stock options subject to repurchase | $ 3,000 | $ 3,000 | $ 5,400 | ||||||
Maximum number of additional shares of common stock that may be issued (in shares) | shares | 5,000,000 | ||||||||
Employee payroll contributions accrued | 94,738 | $ 94,738 | $ 71,907 | ||||||
Stock options | |||||||||
Stock Based Compensation | |||||||||
Expected to be amortized over weighted-average vesting period (in years) | 1 year 4 months 24 days | 1 year 8 months 12 days | |||||||
Stock options | Minimum | |||||||||
Stock Based Compensation | |||||||||
Risk-free interest rate | 0.60% | 0.20% | |||||||
Expected stock price volatility | 36.10% | 35.80% | |||||||
Stock options | Maximum | |||||||||
Stock Based Compensation | |||||||||
Risk-free interest rate | 1.00% | 0.40% | |||||||
Expected stock price volatility | 37.10% | 37.30% | |||||||
Service-based vesting | |||||||||
Stock Based Compensation | |||||||||
Number of vesting schedules | tranche | 4 | ||||||||
Service-based vesting | Vesting one | |||||||||
Stock Based Compensation | |||||||||
Vesting percentage | 10.00% | 25.00% | |||||||
Number of quarterly installments | installment | 12 | ||||||||
Service-based vesting | Vesting two | |||||||||
Stock Based Compensation | |||||||||
Vesting percentage | 15.00% | ||||||||
Number of quarterly installments | installment | 16 | ||||||||
Service-based vesting | Vesting three | |||||||||
Stock Based Compensation | |||||||||
Vesting percentage | 25.00% | ||||||||
Number of quarterly installments | installment | 8 | ||||||||
Service-based vesting | Vesting four | |||||||||
Stock Based Compensation | |||||||||
Vesting percentage | 50.00% | ||||||||
Number of quarterly installments | installment | 16 | ||||||||
RSUs | |||||||||
Stock Based Compensation | |||||||||
Expected to be amortized over weighted-average vesting period (in years) | 2 years 4 months 24 days | ||||||||
Total unrecognized stock-based compensation expenses related to unvested RSUs/PSUs | 719,800 | $ 719,800 | |||||||
PSUs | |||||||||
Stock Based Compensation | |||||||||
Expected to be amortized over weighted-average vesting period (in years) | 1 year 3 months 18 days | ||||||||
Total unrecognized stock-based compensation expenses related to unvested RSUs/PSUs | 56,900 | $ 56,900 | |||||||
Special PSUs | |||||||||
Stock Based Compensation | |||||||||
Expected to be amortized over weighted-average vesting period (in years) | 3 years 1 month 6 days | ||||||||
Number of quarterly installments | installment | 4 | ||||||||
Total unrecognized stock-based compensation expenses related to unvested RSUs/PSUs | 115,300 | $ 115,300 | |||||||
Risk-free interest rate | 0.85% | ||||||||
Expected stock price volatility | 55.36% | ||||||||
Historical volatility rate, weight | 50.00% | ||||||||
Implied volatility rate, weight | 50.00% | ||||||||
Look back period | 2 years 2 months 15 days | ||||||||
Special PSUs | Chief Executive Officer | |||||||||
Stock Based Compensation | |||||||||
Granted (in shares) | shares | 540,000 | ||||||||
Special PSUs | Vesting one | |||||||||
Stock Based Compensation | |||||||||
Vesting percentage | 50.00% | ||||||||
Special PSUs | Vesting two | |||||||||
Stock Based Compensation | |||||||||
Vesting percentage | 12.50% | ||||||||
Special PSUs | Vesting three | |||||||||
Stock Based Compensation | |||||||||
Vesting percentage | 12.50% | ||||||||
Special PSUs | Vesting four | |||||||||
Stock Based Compensation | |||||||||
Vesting percentage | 12.50% | ||||||||
Special PSUs | Vesting five | |||||||||
Stock Based Compensation | |||||||||
Vesting percentage | 12.50% | ||||||||
Employee Stock Purchase Plan | |||||||||
Stock Based Compensation | |||||||||
Threshold percentage of outstanding shares | 1.00% | ||||||||
Offering period | 24 months | ||||||||
Number of purchase periods | purchasePeriod | 4 | ||||||||
Duration of purchase periods | 6 months | ||||||||
Percentage of eligible compensation | 15.00% | ||||||||
Maximum number of shares each participant can purchase during purchase period (in shares) | shares | 2,500 | ||||||||
Purchase price, threshold percentage of fair market value | 85.00% | ||||||||
Number of increases in contribution | changeInContribution | 1 | ||||||||
Plan modification, incremental cost | 1,100 | $ 800 | $ 5,400 | $ 1,600 | |||||
Employee payroll contributions accrued | $ 20,400 | $ 20,400 | $ 11,000 | ||||||
Employee Stock Purchase Plan | Minimum | |||||||||
Stock Based Compensation | |||||||||
Risk-free interest rate | 0.00% | 0.20% | |||||||
Expected stock price volatility | 33.00% | 30.10% | |||||||
Employee Stock Purchase Plan | Maximum | |||||||||
Stock Based Compensation | |||||||||
Risk-free interest rate | 1.90% | 2.00% | |||||||
Expected stock price volatility | 55.90% | 54.30% | |||||||
Class A common stock | Employee Stock Purchase Plan | |||||||||
Stock Based Compensation | |||||||||
Maximum number of shares of common stock that may be issued (in shares) | shares | 3,500,000 | ||||||||
2019 Plan | Class A common stock | |||||||||
Stock Based Compensation | |||||||||
Maximum number of shares of common stock that may be issued (in shares) | shares | 8,750,000 | ||||||||
Threshold percentage of outstanding shares | 2.00% |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions (Details) | 9 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Stock options | ||
Stock Based Compensation | ||
Dividend yield | 0.00% | 0.00% |
Stock options | Minimum | ||
Stock Based Compensation | ||
Expected term (in years) | 3 years 9 months 18 days | 3 years 2 months 12 days |
Risk-free interest rate | 0.60% | 0.20% |
Expected stock price volatility | 36.10% | 35.80% |
Stock options | Maximum | ||
Stock Based Compensation | ||
Expected term (in years) | 5 years 7 months 6 days | 6 years 1 month 6 days |
Risk-free interest rate | 1.00% | 0.40% |
Expected stock price volatility | 37.10% | 37.30% |
Employee Stock Purchase Plan | ||
Stock Based Compensation | ||
Dividend yield | 0.00% | 0.00% |
Employee Stock Purchase Plan | Minimum | ||
Stock Based Compensation | ||
Expected term (in years) | 6 months | 6 months |
Risk-free interest rate | 0.00% | 0.20% |
Expected stock price volatility | 33.00% | 30.10% |
Employee Stock Purchase Plan | Maximum | ||
Stock Based Compensation | ||
Expected term (in years) | 2 years | 2 years |
Risk-free interest rate | 1.90% | 2.00% |
Expected stock price volatility | 55.90% | 54.30% |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock options - Summary (Details) | 3 Months Ended | 9 Months Ended |
Oct. 31, 2021$ / sharesshares | Oct. 31, 2021$ / sharesshares | |
Number of Shares | ||
Options outstanding at beginning of period (in shares) | shares | 6,646,000 | |
Options granted (in shares) | shares | 0 | 93,000 |
Exercised (in shares) | shares | (2,136,000) | |
Canceled (in shares) | shares | (182,000) | |
Options outstanding at end of period (in shares) | shares | 4,421,000 | 4,421,000 |
Options vested and expected to vest at end of period (in shares) | shares | 4,421,000 | 4,421,000 |
Options exercisable at end of period (in shares) | shares | 2,871,000 | 2,871,000 |
Weighted-Average Exercise Price Per Share | ||
Options outstanding at beginning of period (in usd per share) | $ / shares | $ 8.24 | |
Granted (in usd per share) | $ / shares | 3.19 | |
Exercised (in usd per share) | $ / shares | 5.99 | |
Canceled (in usd per share) | $ / shares | 30.31 | |
Options outstanding at end of period (in usd per share) | $ / shares | $ 8.32 | 8.32 |
Options vested and expected to vest at end of period (in usd per share) | $ / shares | 8.32 | 8.32 |
Options exercisable at end of period (in usd per share) | $ / shares | $ 6.56 | $ 6.56 |
Stock-Based Compensation - RSU,
Stock-Based Compensation - RSU, PSU and Special PSU activity (Details) - RSU, PSU and Special PSU shares in Thousands | 9 Months Ended |
Oct. 31, 2021$ / sharesshares | |
Number of Shares | |
RSUs and PSUs outstanding at beginning of period (in shares) | shares | 8,449 |
Granted (in shares) | shares | 2,964 |
Vested (in shares) | shares | (2,680) |
Performance adjustment (in shares) | shares | 153 |
Forfeited (in shares) | shares | (414) |
RSUs and PSUs outstanding at end of period (in shares) | shares | 8,472 |
RSUs and PSUs expected to vest at end of period (in shares) | shares | 8,472 |
Weighted- Average Grant Date Fair Value Per Share | |
RSUs and PSUs outstanding at beginning of period (in usd per share) | $ / shares | $ 59.27 |
Granted (in usd per share) | $ / shares | 229.47 |
Vested (in usd per share) | $ / shares | 58.59 |
Performance Adjustment (in usd per share) | $ / shares | 58.15 |
Forfeited (in usd per share) | $ / shares | 99.42 |
RSUs and PSUs outstanding at end of period (in usd per share) | $ / shares | 117.05 |
RSUs and PSUs expected to vest at end of period (in usd per share) | $ / shares | $ 117.05 |
Stock-Based Compensation - Expe
Stock-Based Compensation - Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | $ 86,666 | $ 40,610 | $ 217,315 | $ 101,961 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 25,499 | 12,811 | 68,178 | 35,101 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 27,333 | 11,771 | 70,942 | 25,700 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 25,319 | 11,251 | 55,684 | 29,357 |
Subscription | Cost of revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 5,969 | 3,226 | 15,548 | 7,856 |
Professional services | Cost of revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | $ 2,546 | $ 1,551 | $ 6,963 | $ 3,947 |
Revenue, Deferred Revenue and_3
Revenue, Deferred Revenue and Remaining Performance Obligations - Revenue from Contracts by Type and Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 380,051 | $ 232,460 | $ 1,020,584 | $ 609,509 |
Percentage of revenue | 100.00% | 100.00% | 100.00% | 100.00% |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 276,698 | $ 167,741 | $ 741,168 | $ 438,955 |
Percentage of revenue | 73.00% | 72.00% | 73.00% | 72.00% |
Europe, Middle East, and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 50,721 | $ 33,192 | $ 138,920 | $ 86,785 |
Percentage of revenue | 13.00% | 14.00% | 14.00% | 14.00% |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 37,265 | $ 20,551 | $ 99,263 | $ 53,186 |
Percentage of revenue | 10.00% | 9.00% | 9.00% | 9.00% |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 15,367 | $ 10,976 | $ 41,233 | $ 30,583 |
Percentage of revenue | 4.00% | 5.00% | 4.00% | 5.00% |
Channel Partners | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 282,774 | $ 175,837 | $ 761,597 | $ 459,529 |
Percentage of revenue | 74.00% | 76.00% | 75.00% | 75.00% |
Direct Customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 97,277 | $ 56,623 | $ 258,987 | $ 149,980 |
Percentage of revenue | 26.00% | 24.00% | 25.00% | 25.00% |
Revenue, Deferred Revenue and_4
Revenue, Deferred Revenue and Remaining Performance Obligations - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Contract with Customer, Liability [Line Items] | ||||
Revenue included in the contract liability balance | $ 316,200,000 | $ 185,700,000 | $ 598,800,000 | $ 354,500,000 |
Commission amortization period | 4 years | |||
Professional services contract amortization | 6 months | |||
Impairment loss | $ 0 | $ 0 | $ 0 | $ 0 |
Minimum | ||||
Contract with Customer, Liability [Line Items] | ||||
Payment terms | 30 days | |||
Subscription term | 1 year | |||
Maximum | ||||
Contract with Customer, Liability [Line Items] | ||||
Payment terms | 60 days | |||
Subscription term | 3 years |
Revenue, Deferred Revenue and_5
Revenue, Deferred Revenue and Remaining Performance Obligations - Changes in Deferred Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Movement in Deferred Revenue [Roll Forward] | ||||
Beginning Balance | $ 1,164,357 | $ 689,840 | $ 911,895 | $ 571,168 |
Additions to deferred revenue | 503,890 | 305,294 | 1,396,885 | 801,015 |
Recognition of deferred revenue | (380,051) | (232,460) | (1,020,584) | (609,509) |
Ending Balance | $ 1,288,196 | $ 762,674 | $ 1,288,196 | $ 762,674 |
Revenue, Deferred Revenue and_6
Revenue, Deferred Revenue and Remaining Performance Obligations - Performance Obligations (Details) $ in Billions | Oct. 31, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
Transaction price allocated to remaining performance obligations | $ 1.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-11-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 71.00% |
Remaining performance obligation, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-11-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 28.00% |
Remaining performance obligation, period | 13 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-11-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, period | 36 months |
Revenue, Deferred Revenue and_7
Revenue, Deferred Revenue and Remaining Performance Obligations - Deferred Contract Acquisition Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | Jan. 31, 2021 | |
Movement in Deferred Contract Acquisition Costs [Roll Forward] | |||||
Beginning balance | $ 235,913 | $ 135,023 | $ 198,756 | $ 114,206 | |
Capitalization of contract acquisition costs | 64,325 | 35,753 | 151,901 | 84,741 | |
Amortization of deferred contract acquisition costs | (29,293) | (16,769) | (79,712) | (44,940) | |
Ending balance | 270,945 | 154,007 | 270,945 | 154,007 | |
Deferred contract acquisition costs, current | 108,636 | 62,422 | 108,636 | 62,422 | $ 80,850 |
Deferred contract acquisition costs, noncurrent | 162,309 | 91,585 | 162,309 | 91,585 | 117,906 |
Total deferred contract acquisition costs | $ 270,945 | $ 154,007 | $ 270,945 | $ 154,007 | $ 198,756 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 1 Months Ended | |
Oct. 31, 2021 | Jan. 31, 2021 | |
Line of Credit Facility [Line Items] | ||
Commitment to spend | $ 52,400,000 | |
Liability recorded | 0 | $ 0 |
Liabilities accrued | 0 | 0 |
Amazon Web Services | ||
Line of Credit Facility [Line Items] | ||
Minimum commitment | 600,000,000 | |
Remaining contractual commitment | 587,700,000 | |
Sunnyvale, California | ||
Line of Credit Facility [Line Items] | ||
Unused standby letter of credit | 400,000 | 400,000 |
Austin, Texas | ||
Line of Credit Facility [Line Items] | ||
Unused standby letter of credit | $ 1,000,000 | $ 1,000,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Purchase Obligations (Details) $ in Thousands | Oct. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Fiscal 2022 (remaining three months) | $ 23,806 |
2023 | 57,566 |
2024 | 54,492 |
2025 | 10,047 |
2026 | 7,299 |
Thereafter | 2,546 |
Total purchase commitments | $ 155,756 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | Jan. 31, 2021 | |
Related Party Transactions [Abstract] | |||||
Revenue from subscriptions and professional services from related parties | $ 1.8 | $ 1.1 | $ 5.4 | $ 3 | |
Accounts receivable associated with related parties | 0.7 | 0.7 | $ 1.3 | ||
Related party purchases | $ 5 | $ 6 | $ 18.5 | $ 6.2 |
Acquisitions- Additional Inform
Acquisitions- Additional Information (Details) | Mar. 05, 2021USD ($) | Sep. 30, 2020USD ($)segment | Oct. 31, 2021USD ($) | Oct. 31, 2021USD ($)segment | Jan. 31, 2021USD ($) |
Business Acquisition [Line Items] | |||||
Goodwill | $ 373,889,000 | $ 373,889,000 | $ 83,566,000 | ||
Number of reportable segments | segment | 1 | ||||
Humio Limited | |||||
Business Acquisition [Line Items] | |||||
Voting equity interest acquired | 100.00% | ||||
Total consideration transferred | $ 370,300,000 | ||||
Payments to acquire businesses, gross | 353,800,000 | ||||
Cash acquired from acquisition | 12,500,000 | ||||
Fair value of replacement equity awards | 4,000,000 | ||||
Identified intangible assets | 75,600,000 | ||||
Net tangible assets acquired | 3,400,000 | ||||
Goodwill | $ 291,300,000 | ||||
Acquisition related costs | 300,000 | $ 5,000,000 | |||
Preempt | |||||
Business Acquisition [Line Items] | |||||
Voting equity interest acquired | 100.00% | ||||
Total consideration transferred | $ 91,200,000 | ||||
Payments to acquire businesses, gross | 87,400,000 | ||||
Fair value of replacement equity awards | 3,800,000 | ||||
Identified intangible assets | 16,385,000 | ||||
Goodwill | $ 75,300,000 | ||||
Number of reportable segments | segment | 1 | ||||
Acquisition related costs | $ 0 | $ 300,000 | |||
Net tangible assets acquired | $ (500,000) |
Acquisitions- Identifiable Inta
Acquisitions- Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 05, 2021 | Sep. 30, 2020 | Oct. 31, 2021 | Jan. 31, 2021 |
Developed technology | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Useful Life | 84 months | 56 months | ||
Customer relationships | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Useful Life | 74 months | 54 months | ||
Humio Limited | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Fair Value | $ 75,600 | |||
Humio Limited | Developed technology | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Fair Value | $ 68,800 | |||
Useful Life | 96 months | |||
Humio Limited | Customer relationships | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Fair Value | $ 5,400 | |||
Useful Life | 96 months | |||
Humio Limited | Trade names | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Fair Value | $ 1,400 | |||
Useful Life | 24 months | |||
Preempt | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Fair Value | $ 16,385 | |||
Preempt | Developed technology | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Fair Value | $ 13,200 | |||
Useful Life | 60 months | |||
Preempt | Customer relationships | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Fair Value | $ 3,100 | |||
Useful Life | 60 months | |||
Preempt | Trade names | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Fair Value | $ 85 | |||
Useful Life | 12 months |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable to Common Stockholders - Computation of Basic and Diluted Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Numerator: | ||||
Net loss attributable to Class A and Class B CrowdStrike common stockholders | $ (50,455) | $ (24,531) | $ (192,822) | $ (73,627) |
Denominator: | ||||
Weighted-average shares used in computing net loss per share attributable to Crowdstrike, basic (in shares) | 228,293 | 219,401 | 226,292 | 216,432 |
Weighted-average shares used in computing net loss per share attributable to Crowdstrike, diluted (in shares) | 228,293 | 219,401 | 226,292 | 216,432 |
Net loss per share attributable to Crowdstrike, basic (in dollars per share) | $ (0.22) | $ (0.11) | $ (0.85) | $ (0.34) |
Net loss per share attributable to Crowdstrike, diluted (in dollars per share) | $ (0.22) | $ (0.11) | $ (0.85) | $ (0.34) |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Common Stockholders - Schedule of Antidilutive Securities (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential common shares excluded from diluted net loss per share (in shares) | 13,730,000 | 19,037,000 |
Contingent consideration related to business combinations | $ 8.5 | |
Contingent consideration vesting period | 2 years | |
Shares issued | 11,313 | |
Weighted average price (in dollars per share) | $ 253.42 | |
Shares of common stock subject to repurchase from outstanding stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential common shares excluded from diluted net loss per share (in shares) | 279,000 | 638,000 |
RSUs and PSUs subject to future vesting | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential common shares excluded from diluted net loss per share (in shares) | 8,472,000 | 8,747,000 |
Shares of common stock issuable from stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential common shares excluded from diluted net loss per share (in shares) | 4,421,000 | 8,521,000 |
Share purchase rights under the employee stock purchase plan | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential common shares excluded from diluted net loss per share (in shares) | 558,000 | 1,131,000 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Nov. 29, 2021USD ($) |
Subsequent Event | Secure Circle | |
Subsequent Event [Line Items] | |
Payments to acquire businesses, gross | $ 60.8 |