Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2022 | Feb. 28, 2022 | Jul. 31, 2021 | |
Class of Stock [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 31, 2022 | ||
Current Fiscal Year End Date | --01-31 | ||
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 | 206 E. 9th Street | ||
Entity Address, Address Line Two | Suite 1400 | ||
Entity Address, City or Town | Austin | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 78701 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 51,500 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement relating to its 2022 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K where indicated. Such Proxy Statement will be filed with the United States Securities and Exchange Commission within 120 days after the end of the fiscal year to which this Annual Report on Form 10-K relates. | ||
Entity Central Index Key | 0001535527 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Class A | |||
Class of Stock [Line Items] | |||
Entity Common Stock, Shares Outstanding (in shares) | 210,058,133 | ||
Common Class B | |||
Class of Stock [Line Items] | |||
Entity Common Stock, Shares Outstanding (in shares) | 20,709,727 |
Audit Information
Audit Information | 12 Months Ended |
Jan. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | San Jose, California |
Auditor Firm ID | 238 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,996,633 | $ 1,918,608 |
Accounts receivable, net of allowance for credit losses of $1.6 million and $1.2 million as of January 31, 2022 and January 31, 2021, respectively | 368,145 | 239,199 |
Deferred contract acquisition costs, current | 126,822 | 80,850 |
Prepaid expenses and other current assets | 79,352 | 53,617 |
Total current assets | 2,570,952 | 2,292,274 |
Strategic investments | 23,632 | 2,500 |
Property and equipment, net | 260,577 | 167,014 |
Operating lease right-of-use assets | 31,735 | 36,484 |
Deferred contract acquisition costs, noncurrent | 192,358 | 117,906 |
Goodwill | 416,445 | 83,566 |
Intangible assets, net | 97,336 | 15,677 |
Other long-term assets | 25,346 | 17,112 |
Total assets | 3,618,381 | 2,732,533 |
Current liabilities: | ||
Accounts payable | 47,634 | 12,065 |
Accrued expenses | 83,382 | 51,117 |
Accrued payroll and benefits | 104,563 | 71,907 |
Operating lease liabilities, current | 9,820 | 8,977 |
Deferred revenue | 1,136,502 | 701,988 |
Other current liabilities | 24,929 | 17,499 |
Total current liabilities | 1,406,830 | 863,553 |
Long-term debt | 739,517 | 738,029 |
Deferred revenue, noncurrent | 392,819 | 209,907 |
Operating lease liabilities, noncurrent | 25,379 | 31,986 |
Other liabilities, noncurrent | 16,193 | 17,184 |
Total liabilities | 2,580,738 | 1,860,659 |
Commitments and contingencies (Note 11) | ||
Stockholders’ Equity | ||
Preferred stock, $0.0005 par value; 100,000 shares authorized as of January 31, 2022 and January 31, 2021; no shares issued and outstanding as of January 31, 2022 and January 31, 2021 | 0 | 0 |
Additional paid-in capital | 1,991,807 | 1,598,259 |
Accumulated deficit | (964,918) | (730,116) |
Accumulated other comprehensive (loss) income | (1,240) | 2,319 |
Total CrowdStrike Holdings, Inc. stockholders’ equity | 1,025,764 | 870,574 |
Non-controlling interest | 11,879 | 1,300 |
Total stockholders’ equity | 1,037,643 | 871,874 |
Total liabilities and stockholders’ equity | 3,618,381 | 2,732,533 |
Common Class And B | ||
Stockholders’ Equity | ||
Class A common stock, $0.0005 par value; 2,000,000 shares authorized as of January 31, 2022 and January 31, 2021; 209,996 shares, and 195,039 shares issued and outstanding as of January 31, 2022 and January 31, 2021, respectively; Class B common stock, $0.0005 par value; 300,000 shares authorized as of January 31, 2022 and January 31, 2021; 20,710 shares, and 28,685 shares issued and outstanding as of January 31, 2022 and January 31, 2021, respectively | $ 115 | $ 112 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jan. 31, 2022 | Jan. 31, 2021 |
Accounts receivable allowance for doubtful accounts | $ 1.6 | $ 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 |
Common Class A | ||
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) | 209,996,000 | 195,039,000 |
Common stock, shares outstanding (in shares) | 209,996,000 | 195,039,000 |
Common Class B | ||
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) | 20,710,000 | 28,685,000 |
Common stock, shares outstanding (in shares) | 20,710,000 | 28,685,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Revenue | |||
Total revenue | $ 1,451,594 | $ 874,438 | $ 481,413 |
Cost of revenue | |||
Total cost of revenue | 383,221 | 229,545 | 141,627 |
Gross profit | 1,068,373 | 644,893 | 339,786 |
Operating expenses | |||
Sales and marketing | 616,546 | 401,316 | 266,595 |
Research and development | 371,283 | 214,670 | 130,188 |
General and administrative | 223,092 | 121,436 | 89,068 |
Total operating expenses | 1,210,921 | 737,422 | 485,851 |
Loss from operations | (142,548) | (92,529) | (146,065) |
Interest expense | (25,231) | (1,559) | (442) |
Other income, net | 7,756 | 6,219 | 6,725 |
Loss before provision for income taxes | (160,023) | (87,869) | (139,782) |
Provision for income taxes | 72,355 | 4,760 | 1,997 |
Net Loss | (232,378) | (92,629) | (141,779) |
Net income attributable to noncontrolling interest | 2,424 | 0 | 0 |
Net loss attributable to CrowdStrike | $ (234,802) | $ (92,629) | $ (141,779) |
Net loss per share attributable to CrowdStrike common stockholders, basic (in dollars per share) | $ (1.03) | $ (0.43) | $ (0.96) |
Net loss per share attributable to CrowdStrike common stockholders, diluted (in dollars per share) | $ (1.03) | $ (0.43) | $ (0.96) |
Weighted-average shares used in computing net loss per share attributable to CrowdStrike common stockholders, basic (in shares) | 227,142 | 217,756 | 148,062 |
Weighted-average shares used in computing net loss per share attributable to CrowdStrike common stockholders, diluted (in shares) | 227,142 | 217,756 | 148,062 |
Subscription | |||
Revenue | |||
Total revenue | $ 1,359,537 | $ 804,670 | $ 436,323 |
Cost of revenue | |||
Total cost of revenue | 321,904 | 185,212 | 112,474 |
Professional services | |||
Revenue | |||
Total revenue | 92,057 | 69,768 | 45,090 |
Cost of revenue | |||
Total cost of revenue | $ 61,317 | $ 44,333 | $ 29,153 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (232,378) | $ (92,629) | $ (141,779) |
Foreign currency translation adjustments | (3,559) | 2,630 | (410) |
Reversal of unrealized gain upon sale of debt securities, net of tax | 0 | (1,320) | 0 |
Unrealized gain on available-for-sale securities, net of tax | 0 | 0 | 1,321 |
Other comprehensive income (loss) | (3,559) | 1,310 | 911 |
Less: Comprehensive income attributable to noncontrolling interest | 2,424 | 0 | 0 |
Total comprehensive loss attributable to CrowdStrike | $ (238,361) | $ (91,319) | $ (140,868) |
Consolidated Statements of Rede
Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interest | Redeemable Convertible Preferred Stock |
Temporary equity, beginning balance (in shares) at Jan. 31, 2019 | 131,268 | ||||||||
Temporary equity, carrying amount, beginning balance at Jan. 31, 2019 | $ 557,912 | ||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering (in shares) | (131,268) | ||||||||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering | $ (557,912) | ||||||||
Temporary equity, ending balance (in shares) at Jan. 31, 2020 | 0 | ||||||||
Temporary equity, carrying amount, ending balance at Jan. 31, 2020 | $ 0 | ||||||||
Shares outstanding, beginning balance (in shares) at Jan. 31, 2019 | 47,421 | ||||||||
Stockholder's equity, including portion attributable to noncontrolling interest, beginning balance at Jan. 31, 2019 | $ (487,793) | $ 23,418 | $ 24 | $ 31,211 | $ (519,126) | $ 23,418 | $ 98 | $ 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock upon initial public offering, net of underwriting discounts and issuance costs (in shares) | 20,700 | ||||||||
Issuance of common stock upon initial public offering, net of underwriting discounts and issuance costs | 659,218 | $ 11 | 659,207 | ||||||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering (in shares) | 131,268 | ||||||||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering | 557,912 | $ 66 | 557,846 | ||||||
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital upon initial public offering | 10,559 | 10,559 | |||||||
Net exercise of common stock warrants (in shares) | 322 | ||||||||
Issuance of common stock upon exercise of options (in shares) | 10,645 | ||||||||
Issuance of common stock upon exercise of options | 21,512 | $ 5 | 21,507 | ||||||
Issuance of common stock under RSU release (in shares) | 1,127 | ||||||||
Issuance of common stock under employee stock purchase plan (in shares) | 428 | ||||||||
Issuance of common stock under employee stock purchase plan | 12,365 | 12,365 | |||||||
Issuance of common stock related to early exercised options (in shares) | 1,037 | ||||||||
Vesting of early exercised options | 2,704 | 2,704 | |||||||
Stock-based compensation expense | 79,940 | 79,940 | |||||||
Capitalized stock-based compensation | 857 | 857 | |||||||
Settlement related to stockholders short-swing trade profit | 2,283 | 2,283 | |||||||
Net income (loss) | (141,779) | (141,779) | |||||||
Non-controlling interest | 500 | 500 | |||||||
Unrealized gain on available-for-sale securities, net of tax | 1,321 | 1,321 | |||||||
Foreign currency translation adjustments | (410) | (410) | |||||||
Other comprehensive loss | 911 | ||||||||
Shares outstanding, ending balance (in shares) at Jan. 31, 2020 | 212,948 | ||||||||
Stockholder's equity, including portion attributable to noncontrolling interest, ending balance at Jan. 31, 2020 | 742,607 | $ 106 | 1,378,479 | (637,487) | 1,009 | 500 | |||
Temporary equity, ending balance (in shares) at Jan. 31, 2021 | 0 | ||||||||
Temporary equity, carrying amount, ending balance at Jan. 31, 2021 | $ 0 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock upon exercise of options (in shares) | 7,752 | ||||||||
Issuance of common stock upon exercise of options | 28,831 | $ 6 | 28,825 | ||||||
Issuance of common stock under RSU release (in shares) | 1,994 | ||||||||
Issuance of common stock under employee stock purchase plan (in shares) | 1,030 | ||||||||
Issuance of common stock under employee stock purchase plan | 34,263 | 34,263 | |||||||
Vesting of early exercised options | 3,318 | 3,318 | |||||||
Stock-based compensation expense | 149,375 | 149,375 | |||||||
Capitalized stock-based compensation | 3,686 | 3,686 | |||||||
Fair value of replacement equity awards attributable to pre-acquisition service | 313 | 313 | |||||||
Net income (loss) | (92,629) | (92,629) | |||||||
Non-controlling interest | 800 | 800 | |||||||
Unrealized gain on available-for-sale securities, net of tax | 0 | ||||||||
Foreign currency translation adjustments | 2,630 | ||||||||
Other comprehensive loss | 1,310 | 1,310 | |||||||
Shares outstanding, ending balance (in shares) at Jan. 31, 2021 | 223,724 | ||||||||
Stockholder's equity, including portion attributable to noncontrolling interest, ending balance at Jan. 31, 2021 | 871,874 | $ 112 | 1,598,259 | (730,116) | 2,319 | 1,300 | |||
Temporary equity, ending balance (in shares) at Jan. 31, 2022 | 0 | ||||||||
Temporary equity, carrying amount, ending balance at Jan. 31, 2022 | $ 0 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock upon exercise of options (in shares) | 2,598 | ||||||||
Issuance of common stock upon exercise of options | 15,899 | $ 1 | 15,898 | ||||||
Issuance of common stock under RSU release (in shares) | 3,408 | ||||||||
Issuance of common stock under RSU and PSU release | 0 | $ 2 | (2) | ||||||
Issuance of common stock under employee stock purchase plan (in shares) | 904 | ||||||||
Issuance of common stock under employee stock purchase plan | 50,277 | 50,277 | |||||||
Issuance of common stock related to early exercised options (in shares) | 57 | ||||||||
Vesting of early exercised options | 3,165 | 3,165 | |||||||
Issuance of common stock for founders holdbacks related to acquisitions (in shares) | 15 | ||||||||
Issuance of common stock for founders holdbacks related to acquisitions | 3,528 | 3,528 | |||||||
Stock-based compensation expense | 305,792 | 305,792 | |||||||
Capitalized stock-based compensation | 10,879 | 10,879 | |||||||
Fair value of replacement equity awards attributable to pre-acquisition service | 4,011 | 4,011 | |||||||
Net income (loss) | (232,378) | (234,802) | 2,424 | ||||||
Non-controlling interest | 8,155 | 8,155 | |||||||
Unrealized gain on available-for-sale securities, net of tax | 0 | ||||||||
Foreign currency translation adjustments | (3,559) | ||||||||
Other comprehensive loss | (3,559) | (3,559) | |||||||
Shares outstanding, ending balance (in shares) at Jan. 31, 2022 | 230,706 | ||||||||
Stockholder's equity, including portion attributable to noncontrolling interest, ending balance at Jan. 31, 2022 | $ 1,037,643 | $ 115 | $ 1,991,807 | $ (964,918) | $ (1,240) | $ 11,879 |
Consolidated Statements of Re_2
Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Parenthetical) | 12 Months Ended |
Jan. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |
Accounting Standards Update [Extensible List] | Accounting Standards Update 2014-09 [Member] |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Operating activities | |||
Net loss | $ (232,378) | $ (92,629) | $ (141,779) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 55,908 | 38,710 | 23,026 |
Amortization of intangible assets | 12,902 | 1,448 | 487 |
Amortization of deferred contract acquisition costs | 113,884 | 66,425 | 35,459 |
Non-cash operating lease cost | 9,103 | 7,786 | 0 |
Change in fair value of redeemable convertible preferred stock warrant liability | 0 | 0 | 6,022 |
Stock-based compensation expense | 309,952 | 149,675 | 79,940 |
Deferred income taxes | (13,956) | (1,452) | (681) |
Gain on sale of debt securities, net | 0 | (1,347) | 0 |
Amortization (accretion) of marketable securities purchased at a premium (discount) | 0 | 578 | (1,247) |
Non-cash interest expense | 2,469 | 853 | 435 |
Other non-cash charges | 0 | 0 | (427) |
Change in fair value of strategic investments | (4,823) | 0 | 0 |
Changes in operating assets and liabilities, net of impact of acquisitions | |||
Accounts receivable, net | (125,354) | (73,022) | (72,511) |
Deferred contract acquisition costs | (234,308) | (150,975) | (86,594) |
Prepaid expenses and other assets | (29,535) | 2,198 | (44,008) |
Accounts payable | 33,248 | 11,325 | (6,570) |
Accrued expenses and other liabilities | 38,483 | 33,083 | 10,097 |
Accrued payroll and benefits | 32,681 | 33,212 | 17,526 |
Operating lease liabilities | (9,900) | (8,105) | 0 |
Deferred revenue | 616,408 | 338,803 | 280,768 |
Net cash provided by operating activities | 574,784 | 356,566 | 99,943 |
Investing activities | |||
Purchases of property and equipment | (112,143) | (52,799) | (80,198) |
Capitalized internal-use software and website development costs | (20,866) | (10,864) | (7,289) |
Purchases of strategic investments | (16,309) | (1,500) | (1,000) |
Business acquisitions, net of cash acquired | (414,518) | (85,517) | 0 |
Purchases of intangible assets | (680) | (180) | 0 |
Purchases of marketable securities | 0 | (84,904) | (779,701) |
Proceeds from sales of marketable securities | 0 | 639,586 | 9,581 |
Maturities of marketable securities | 0 | 91,605 | 228,976 |
Net cash (used in) provided by investing activities | (564,516) | 495,427 | (629,631) |
Financing activities | |||
Proceeds from the issuance of common stock upon initial public offering, net of underwriting discounts | 0 | 0 | 665,092 |
Payments of debt issuance costs related to revolving line of credit | (219) | (3,328) | 0 |
Payments of debt issuance costs related to Senior Notes | (1,581) | 0 | 0 |
Proceeds from issuance of Senior Notes, net of debt financing costs | 0 | 739,569 | 0 |
Payments of deferred offering costs | 0 | 0 | (5,872) |
Proceeds from issuance of common stock upon exercise of stock options | 15,899 | 28,831 | 21,512 |
Proceeds from the issuance of common stock upon exercise of early exercisable stock options | 0 | 0 | 10,264 |
Proceeds from issuance of common stock under the employee stock purchase plan | 50,277 | 34,263 | 12,365 |
Settlement related to stockholder short-swing trade profit | 0 | 0 | 2,283 |
Capital contributions from non-controlling interest holders | 8,155 | 800 | 500 |
Net cash provided by financing activities | 72,531 | 800,135 | 706,144 |
Effect of foreign exchange rates on cash and cash equivalents | (4,774) | 1,682 | (66) |
Net increase in cash and cash equivalents | 78,025 | 1,653,810 | 176,390 |
Cash and cash equivalents, beginning of period | 1,918,608 | 264,798 | 88,408 |
Cash and cash equivalents, end of period | 1,996,633 | 1,918,608 | 264,798 |
Supplemental disclosure of cash flow information: | |||
Interest paid | 275 | 18 | 7 |
Income taxes paid, net of refunds received | 74,677 | 1,732 | 1,862 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Conversion of redeemable convertible preferred stock to common stock | 0 | 0 | 557,912 |
Conversion of redeemable convertible preferred stock warrant liabilities reclassified to additional paid-in capital | 0 | 0 | 10,559 |
Net decrease in deferred offering costs, accrued but not paid | 0 | 0 | (2,858) |
Net increase (decrease) in property and equipment included in accounts payable and accrued expenses | 6,522 | 1,042 | (3,193) |
Vesting of early exercised options | 3,165 | 3,318 | 2,704 |
Equity consideration for acquisitions | 4,011 | 3,842 | 0 |
Debt financing costs, accrued but not paid | 0 | 1,581 | 0 |
Operating lease liabilities arising from obtaining operating right of-use assets | $ 4,867 | $ 6,249 | $ 0 |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Jan. 31, 2022 | |
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’s principal executive offices are in Austin, Texas. 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 consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). Certain prior year amounts in the consolidated statements of cash flows were reclassified to conform to the current period presentation. These reclassifications had no effect on net cash provided by (used in) operating, investing, and financing activities and cash and cash equivalent amounts. Effective February 1, 2020, the Company adopted the Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). Prior periods were not retrospectively recast, and accordingly, the consolidated statements of operations for the fiscal year ended January 31, 2020 was prepared using the prior lease accounting standard referred to as Accounting Standard Codification (“ASC”) Topic 840. Upon adoption, the Company recorded operating lease ROU assets of $37.4 million and corresponding operating lease liabilities of $37.4 million on its consolidated balance sheet. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The 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 consolidated financial statements and accompanying notes. These estimates are based on information available as of the date of the 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 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, and the fair value of assets acquired and liabilities assumed for business combinations. 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 January 31, 2022. While there was not a material impact to the Company’s consolidated financial statements as of and for the year ended January 31, 2022, 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 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: January 31, 2022 2021 Channel partner A (1) 9 % 10 % Customer A (1) 10 % 17 % _______________________________ (1) Channel Partner A and Customer A are controlled by the same company. Channel partners who represented 10% or more of the Company’s total revenue were as follows: Year Ended January 31, 2022 2021 2020 Channel partner B 7 % 8 % 10 % There were no direct customers who represented 10% or more of the Company’s total revenue during the fiscal years ended January 31, 2022, January 31, 2021, and January 31, 2020. Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less at date of purchase to be cash equivalents. As of January 31, 2022, the Company had $950.6 million of cash equivalents. As of January 31, 2021, the Company did not have any cash equivalents. Strategic Investments In July 2019, the Company agreed to commit up to $10.0 million to a newly formed entity, CrowdStrike Falcon Fund LLC (the “Original Falcon Fund”) in exchange for 50% of the sharing percentage of any distribution by the Original Falcon Fund. In December 2021, the Company agreed to commit an additional $50.0 million to a newly formed entity, CrowdStrike Falcon Fund II LLC (“Falcon Fund II”) in exchange for 50% of the sharing percentage of any distribution by the Falcon Fund II. Further, entities associated with Accel also agreed to commit up to $10.0 million and $50.0 million, respectively, to the Original Falcon Fund and the Falcon Fund II (collectively, the “Falcon Funds”), and collectively own the remaining 50% of the sharing percentage of the Falcon Funds. Both Falcon Funds are in the business of purchasing, selling and investing in minority equity and convertible debt securities of privately-held companies that develop applications that have potential for substantial contribution to CrowdStrike and its platform. The Company is the manager of the Falcon Funds and controls the investment decisions and day-to-day operations and accordingly has consolidated each of the Falcon Funds. Each Falcon Fund has a duration of ten years and may be extended for three additional years. At dissolution, the Falcon Funds will be liquidated and the remaining assets will be distributed to the investors based on their respective sharing percentage. The Company elected the measurement alternative for the non-marketable equity investments of the Falcon Funds where eligible. Under the measurement alternative, the non-marketable equity investments are measured at cost, less any impairment, plus or minus adjustments resulting from price changes from observable transactions of identical or similar securities of the same issuer. All gains and losses on strategic investments, realized and unrealized, are recognized in Other income (expense), net. Strategic investments are classified within Level 3 in the fair value hierarchy as only an impairment of observable adjustment is recognized based on price changes from observable transactions of identical or similar securities of the same issuer and other unobservable inputs including volatility, rights, and obligations of the investments. The Company classifies the investments in the Falcon Funds as a non-current asset called Strategic Investments on the consolidated balance sheets as of January 31, 2022. The Company has recognized an unrealized gain for its portion of ownership of the strategic investments in the amount of $2.4 million, net of gain attributable to non-controlling interest of $2.4 million, during the fiscal year ended January 31, 2022. Fair Value of Financial Instruments The Company’s financial instruments consist of cash equivalents, strategic investments, accounts receivable, accounts payable, accrued expenses, the redeemable convertible preferred stock warrant liability, and the Senior Notes. The carrying values of cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value due to their short-term nature. The Senior Notes are carried at the initially allocated liability value less unamortized debt discount and issuance costs on the Company’s consolidated balance sheet. The Company discloses the fair value of the Senior Notes at each reporting period for disclosure purposes only. Refer to Note 3, Investments and Fair Value Measurements, regarding the fair value of the Company’s non-marketable securities and Note 5, Debt, for the fair value of the Company’s Senior Notes. The Company reports the redeemable convertible preferred stock warrant liability at fair value (see Note 3, Investments and Fair Value Measurements). The warrants issued by the Company for redeemable convertible preferred stock in January 2015, December 2016, and March 2017 have been recorded as a liability based on “Level 3” inputs, which consist of unobservable inputs and reflect management’s estimates of assumptions that market participants would use in pricing the liability. The fair value of the warrants was determined using the Black-Scholes option-pricing model, which is affected by changes in inputs to that model including the Company’s stock price, expected stock price volatility, risk-free rate, and contractual term. Immediately prior to the closing of the IPO on June 14, 2019, the redeemable convertible preferred stock warrants converted into 336,386 warrants to purchase Class B common stock on a one-to-one basis. The redeemable convertible preferred stock warrant liability was reclassified to additional paid-in capital upon the closing of the IPO. Accounts Receivable Accounts receivable are recorded at the invoiced amount and are non-interest bearing. Accounts receivable are stated at their net realizable value, net of the allowance for credit losses. The Company has a well-established collections history from its customers. Credit is extended to customers based on an evaluation of their financial condition and other factors. The Company generally does not require collateral from its customers; however, the Company may require payment prior to commencing service in certain instances to limit credit risk. The Company regularly reviews the adequacy of the allowance for credit loss by considering various factors including the age of each outstanding invoice, each customer’s expected ability to pay, historical loss rates and expectations of forward-looking loss estimates to determine whether the allowance is appropriate. Amounts deemed uncollectible are written off against the allowance for credit loss. As of January 31, 2022 and January 31, 2021, the allowance for credit loss was $1.6 million and $1.2 million, respectively. Software Implementation Costs The Company contracts with third party information technology providers for various service arrangements including software, platform, and information technology infrastructure. The Company capitalizes the implementation cost incurred to develop or obtain internal-use software in such arrangements which are recorded as part of property and equipment, net in the consolidated balance sheets. All capitalized implementation costs are amortized over the term of the arrangement which includes reasonably certain renewals. Costs incurred during the preliminary project and post implement stage are expensed as the activities are performed. Deferred Offering Costs Deferred offering costs consisted of fees and expenses incurred in connection with the sale of the Company’s common stock in an IPO, including legal, accounting, printing and other IPO-related costs. Upon the close of the IPO on June 14, 2019, total deferred offering costs of $5.9 million were reclassified to stockholders’ equity and recorded against the proceeds from the offering. Property and Equipment, Net Property and equipment, net, is stated at historical cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets as follows: Data center and other computer equipment 3 – 5 years Furniture and equipment 5 years Purchased software 3 – 5 years Capitalized internal-use software and website development 3 years Leasehold improvements Estimated useful life or term of the lease, whichever is shorter Expenditures for routine maintenance and repairs are charged to operating expense as incurred. Major renewals and improvements are capitalized and depreciated over their estimated useful lives. Upon retirement or other disposition of property and equipment, the cost and accumulated depreciation are removed from the accounts, and any gain or loss is recorded in operating expenses in the consolidated statement of operations. The Company reviews for impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying amount of the asset (or asset group) may not be recoverable. Events and changes in circumstances considered by the Company in determining whether the carrying value of long-lived assets may not be recoverable, include, but are not limited to: significant changes in performance relative to expected operating results, significant changes in the use of the assets, significant negative industry or economic trends, and changes in the Company’s business strategy. Impairment testing is performed at an asset level that represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (an “asset group”). An impairment loss would be recognized when estimated future cash flows expected to result from the use of the asset (or asset group) and its eventual disposition is less than its carrying amount. No impairment indicators were identified by the Company and no impairment losses were recorded by the Company during the fiscal years ended January 31, 2022, January 31, 2021, and January 31, 2020. Capitalized Internal-Use Software and Website Development Costs The Company capitalizes certain development costs incurred in connection with its internal-use software and website development. These capitalized costs are primarily related to the Company’s cloud-delivered solution for next-generation endpoint protection as well as redefining, redesigning, and rebuilding crowdstrike.com. Costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct, are capitalized until the software and website are substantially complete and ready for its intended use. Capitalization ceases upon completion of all substantial testing. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Capitalized costs are recorded as property and equipment, net. Maintenance and training costs are expensed as incurred. Internal-use software and website development costs are amortized to cost of revenue on a straight-line basis over its estimated useful life of three years. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Deferred Contract Acquisition Costs Under ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers, the Company capitalizes contract acquisition costs that are incremental to the acquisition of customer contracts. Contract acquisition costs are accrued and capitalized upon execution of the sales contract by the customer. 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 referral partners, earned upon the initial acquisition of a contract or subsequent upsell are amortized over an estimated period of benefit of four 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. Deferred Revenue The deferred revenue balance consists of subscription and professional services which have been invoiced upfront and are recognized as revenue only when the revenue recognition criteria are met. The Company’s subscription contracts are typically invoiced to its customers at the beginning of the term, or in some instances, such as in multi-year arrangements, in installments. Professional services are either invoiced upfront, invoiced in installments, or invoiced as the services are performed. Accordingly, the Company’s deferred revenue balance does not include revenue for future years of multi-year non-cancellable contracts that have not yet been billed. The Company recognizes subscription revenue ratably over the contract term beginning on the commencement date of each contract, the date that services are made available to customers. The Company recognizes professional services revenue as services are delivered. Once services are available to customers, the Company records amounts due in accounts receivable and in deferred revenue. To the extent the Company bills customers in advance of the contract commencement date, the accounts receivable and corresponding deferred revenue amounts are netted to zero on the consolidated balance sheets, unless such amounts have been paid as of the balance sheet date. Redeemable Convertible Preferred Stock Warrants Warrants related to the Company’s redeemable convertible preferred stock are classified as liabilities on the Company’s consolidated balance sheets. The warrants are subject to reassessment at each balance sheet date, and any change in fair value is recognized as a component of Other income (expense), net, in the consolidated statements of operations. The Company will continue to adjust the liability for changes in fair value until the earlier of the expiration or exercise of the warrants, or upon their automatic conversion into warrants to purchase common stock in connection with a qualified initial public offering such that they qualify for equity classification and no further remeasurement is required. Immediately prior to the closing of the IPO on June 14, 2019, the redeemable convertible preferred stock warrants converted into 336,386 warrants to purchase Class B common stock on a one-to-one basis. The redeemable convertible preferred stock warrant liability was reclassified to additional paid-in capital. Within the same month, the Company received notice from the holders of 336,386 warrants as to their intentions to exercise the warrants for shares of common stock of the Company. Such shares were settled via net settlement method, which was elected by the holders to reduce the number of shares issued upon exercise to reflect net settlement of the exercise price, resulting in the issuance of 322,278 shares of the Company’s common stock. Revenue Recognition In accordance with ASU 2014-09, Revenue from Contracts with Customers (“ASC 606”), revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration that the Company expects to be entitled to receive in exchange for these services. To achieve the core principle of this standard, the Company applies the following five steps: (1) Identify the contract with a customer The Company considers the terms and conditions of contracts with customers and its customary business practices in identifying contracts under ASC 606. The Company determines it has a contract with a customer when the contract is approved, each party’s rights regarding the services to be transferred can be identified, payment terms for the services can be identified, it has been determined that the customer has the ability and intent to pay, and the contract has commercial substance. The Company applies judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, credit and financial information pertaining to the customer. (2) Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from the Company or from third parties, and are distinct in the context of the contract, whereby the transfer of the services is separately identifiable from other promises in the contract. The Company’s performance obligations consist of (i) subscriptions and (ii) professional services. (3) Determine the transaction price The transaction price is determined based on the consideration which the Company is expected to be entitled to in exchange for transferring services to the customer. Variable consideration is included in the transaction price if it is probable that a significant future reversal of cumulative revenue under the contract will not occur. None of the Company’s contracts contain a significant financing component. (4) Allocate the transaction price to performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price (“SSP”). (5) Recognize revenue when or as performance obligations are satisfied Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised service to the customer. Revenue is recognized when control of the services is transferred to the customer, in an amount that reflects the consideration expected to be received in exchange for those services. The Company generates all its revenue from contracts with customers. Subscription Revenue The Company’s Falcon Platform technology solutions are subscription, SaaS offerings designed to continuously monitor, share, and mitigate risks from determined attackers. Customers do not have the right to take possession of the cloud-based software platform. Fees are based on several factors, including the solutions subscribed for by the customer and the number of endpoints purchased by the customer. The subscription fees are typically payable within 30 to 60 days after the execution of the arrangement, and thereafter upon renewal or subsequent installment. The Company initially records the subscription fees as deferred revenue and recognizes revenue on a straight-line basis over the term of the agreement. The typical subscription term is one Professional Services Revenue The Company offers several types of professional services including incident response and forensic services, surge forensic and malware analysis, and attribution analysis, which are focused on responding to imminent and direct threats, assessing vulnerabilities, and recommending solutions. These services are distinct from subscription services. Professional services do not result in significant customization of the subscription service. The Company’s professional services are available through time and material and fixed fee agreements. Revenue for time and material agreements is recognized as services are performed. Fixed fee contracts account for an immaterial portion of the Company’s revenue. Contracts with Multiple Performance Obligations Some contracts with customers contain multiple promised services consisting of subscription and professional services that are distinct and accounted for separately. The transaction price is allocated to the separate performance obligations on a relative SSP basis. The SSP is the price at which the Company would sell promised subscription or professional services separately to a customer. Judgment is required to determine the SSP for each distinct performance obligation. The Company determines SSP based on its overall pricing objectives, taking into consideration the type of subscription or professional service and the number of endpoints. Variable Consideration Revenue from sales is recorded at the net sales price, which is the transaction price, and may include estimates of variable consideration. The amount of variable consideration that is included in the transaction price is constrained and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue will not occur when the uncertainty is resolved. If subscriptions do not meet certain service level commitments, the Company’s customers are entitled to receive service credits, and in certain cases, refunds, each representing a form of variable consideration. The Company has historically not experienced any significant incidents affecting the defined levels of reliability and performance as required by its subscription contracts. Accordingly, any estimated refunds related to these agreements in the consolidated financial statements is not material during the periods presented. The Company provides rebates and other credits within its contracts with certain resellers, which are estimated based on the expected value to be earned or claimed on the related sales transaction. Overall, the transaction price is reduced to reflect the Company’s estimate of the amount of consideration to which it is entitled based on the terms of the contract. Estimated rebates and other credits were not material during the periods presented. Research and Development Expense Research and development costs are expensed when incurred, except for certain internal-use software development costs, which may be capitalized as noted above. Research and development expenses consist primarily of personnel and related headcount costs, costs of professional services associated with the ongoing development of the Company’s technology, and allocated overhead. Advertising All advertising costs are expensed as incurred and are included in sales and marketing expense in the consolidated statements of operations. The Company incurred $50.5 million, $27.9 million, and $8.0 million of advertising costs during the fiscal years ended January 31, 2022, January 31, 2021, and January 31, 2020, respectively. Stock-Based Compensation Compensation related to stock-based awards to employees and directors are measured and recognized in the Company’s consolidated statements of operations based on the fair value of the awards granted. The Company estimates the fair value of its stock options using the Black-Scholes option-pricing model. The stock-based compensation expense relating to stock options are recognized on a straight-line basis over the period during which the employee or director is required to provide service in exchange for the award, usually the vesting period, which is generally four years. Restricted stock units (“RSUs”) are generally subject to a service-based vesting condition. The service-based vesting condition is generally with a vesting term of four years. The valuation of such RSUs is based solely on the fair value of the Company’s stock price on the date of grant and the corresponding compensation expense are being amortized on a straight-line basis. Performance-based stock units (“PSUs”) are generally subject to both a service-based vesting condition and a performance-based vesting condition. The fair value of the award is equal to the grant date fair market value of the Company’s stock price. PSUs generally vest over a four-year period and subject to continued service through the applicable vesting dates. The stock-based compensation expense relating to PSUs are recognized using the accelerated attribution method over the requisite service period when it is probable that the performance condition will be satisfied. The Special PSU Awards are subject to the Company’s achievement of specified stock price hurdles and a service-based vesting condition. The Company measured the fair value of the Special PSU Awards using a Monte Carlo simulation valuation model. The stock-based compensation expense relating to the Special PSU Awards are recognized using the accelerated attribution method over the requisite service period. Employee Stock Purchase Plan (“ESPP”) grants are measured based on grant date at fair value using the Black-Scholes option-pricing model. The resulting fair value is recognized using the accelerated attribution method over a two The Company accounts for forfeitures as they occur for all stock-based awards. Business Combinations The Company allocates the purchase price of acquired companies to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. The purchase price allocation process requires management to make significant estimates and assumptions with respect to intangible assets. Although the Company believes the assumptions and estimates it has made are reasonable, they are based in part on historical experience, market conditions and information obtained from management of the acquired companies and are inherently uncertain. Examples of judgments used to estimate the fair value of intangibles assets include, but are not limited to, future expected cash flows, expected customer attrition rates, estimated obsolescence rates, and discount rates. These estimates are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, which is one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded in the consolidated statement of operations. Goodwill and Intangible Assets The Company evaluates and tests the recoverability of goodwill for impairment at least annually, on January 31, or more frequently if circumstances indicate that goodwill may not be recoverable. A qualitative assessment is performed to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of its one reporting unit is less than its carrying value. In assessing the qualitative factors, the Company considers the impact of certain key factors including macroeconomic conditions, industry and market considerations, management turnover, changes in regulation, litigation matters, changes in enterprise value, and overall financial performance. If the Company determines it is more likely than not that the fair value of its one reporting unit is less than its carrying value, a quantitative test is performed by estimating the fair value of its reporting unit, including goodwill, and comparing it to its carrying value. If the fair value is lower than the carrying value, the excess is recognized as an impairment loss. No impairment was recorded during the fiscal years ended January 31, 2022, January 31, 2021, or January 31, 2020. The change in the goodwill balance during the fiscal year ended January 31, 2022 was due to the acquisitions of Humio Limited (“Humio”) and Secure Circle, LLC (“SecureCircle”) and changes in foreign currency exchange rates. The change in the goodwill balance during the fiscal year ended January 31, 2021 was due to the acquisition of Preempt Security, Inc. (“Preempt Security”) and changes in foreign currency exchange rates. See Note 4, Balance Sheet Components, and Note 14, Acquisitions, to the consolidated financial statements for more information. Intangible assets, net, consisting of developed technology, customer relationships, and other acquired intangibles, are stated at cost less accumulated amortization on the consolidated balance sheets. All intangible assets have been determined to have definite lives and are amortized on a straight-line basis over their estimated economic lives, which are generally one Operating Leases The Company enters into operating lease arrangements for real estate assets related to office space. The Company determines if an arrangement is or contains a lease at inception by evaluating various factors, including whether a vendor’s right to substitute an identified asset is substantive. Lease classification is determined at the lease commencement date, which is the date the leased assets are made available for use. Operating leases are included in “Operating lease right-of-use assets”, “Operating lease liabilities, current”, and “Operating lease liabilities, noncurrent” in the consolidated balance sheets. The Company did not have any financing leases in any of the periods presented. Operating lease right-of-use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease payments consist of the fixed payments under the arrangement, less any lease incentives, such as tenant improvement allowances. Variable cost |
Investments and Fair Value Meas
Investments and Fair Value Measurements | 12 Months Ended |
Jan. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Investments and Fair Value Measurements | Investments and Fair Value MeasurementsThe Company follows ASC 820, Fair Value Measurements, with respect to cash equivalents 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): January 31, 2022 January 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash equivalents (1) Money market funds $ 300,027 $ — $ — $ 300,027 $ — $ — $ — $ — Total assets $ 300,027 $ — $ — $ 300,027 $ — $ — $ — $ — ______________________________ (1) Included in “Cash and cash equivalents” on the 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, which are Level 3 within the fair value hierarchy (in thousands): Year Ended January 31 2022 2021 Total initial cost $ 18,809 $ 2,500 Unrealized gains due to changes in fair value 4,823 — Carrying value $ 23,632 $ 2,500 The following summarizes the changes in the redeemable convertible preferred stock warrant liability, which is classified as a Level 3 instrument: Year Ended January 31 2022 2021 2020 Balance at beginning of period $ — $ — $ 4,537 Adjustment resulting from change in fair value recognized in the consolidated statement of operations — — 6,022 Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital upon IPO — — (10,559) Balance at end of period $ — $ — $ — The fair value of the redeemable convertible preferred stock warrant liability was estimated using the Black-Scholes option-pricing model and was based on significant inputs not observable in the market, and therefore was classified as a Level 3 instrument. The inputs include the Company’s preferred stock price, expected stock price volatility, risk-free interest rate, and |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Jan. 31, 2022 | |
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): January 31, 2022 2021 Prepaid software licenses $ 26,085 $ 20,596 Prepaid expenses 18,829 12,220 Prepaid marketing 17,629 10,852 Other current assets 12,783 4,566 Prepaid hosting services 4,026 5,383 Prepaid expenses and other current assets $ 79,352 $ 53,617 Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): January 31, 2022 2021 Data center and other computer equipment $ 198,297 $ 146,220 Capitalized internal-use software and website development costs 70,476 44,358 Leasehold improvements 22,029 19,733 Purchased software 5,232 3,211 Furniture and equipment 7,291 6,498 Construction in process 99,030 35,528 402,355 255,548 Less: Accumulated depreciation and amortization (141,778) (88,534) Property and equipment, net $ 260,577 $ 167,014 Construction in process mainly includes data center equipment purchased that has not yet been placed in service. Data center equipment that was purchased but not yet been placed into service was $89.8 million and $30.0 million as of January 31, 2022 and January 31, 2021, respectively. Depreciation and amortization expense of property and equipment was $54.4 million, $38.7 million, and $23.0 million, during the fiscal years ended January 31, 2022, January 31, 2021, and January 31, 2020, respectively. There were no impairments for property and equipment during the fiscal years ended January 31, 2022, January 31, 2021, and January 31, 2020 . The Company capitalized $30.7 million, $14.0 million, and $8.1 million in internal-use software and website development costs during the fiscal years ended January 31, 2022, January 31, 2021, and January 31, 2020, respectively. Amortization expense associated with internal-use software and website development costs totaled $12.4 million, $7.9 million and $6.2 million during the fiscal years ended January 31, 2022, January 31, 2021, and January 31, 2020, respectively. The net book value of capitalized internal-use software and website development costs was $38.6 million and $19.5 million as of January 31, 2022 and January 31, 2021, respectively. Intangible Assets, Net Total intangible assets, net consisted of the following (dollars in thousands): January 31, 2022 Weighted-Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Net Amount (in months) Developed technology $ 97,668 $ 12,000 $ 85,668 79 Customer relationships 12,045 1,973 10,072 72 Other acquired intangible assets 2,397 801 1,596 89 Total $ 112,110 $ 14,774 $ 97,336 January 31, 2021 Weighted-Average Remaining Useful Life 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 expense of intangible assets was $12.9 million, $1.4 million, and $0.5 million, during the fiscal years ended January 31, 2022, January 31, 2021, and January 31, 2020, respectively. Amortization expense of other acquired intangible assets is recorded within cost of revenue, research and development expense and general and administrative expense in the consolidated statements of operations. The estimated aggregate future amortization expense of intangible assets as of January 31, 2022 is as follows (in thousands): Total Fiscal 2023 $ 16,300 Fiscal 2024 15,608 Fiscal 2025 15,524 Fiscal 2026 14,437 Fiscal 2027 12,261 Thereafter 23,206 Total amortization expense $ 97,336 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 fiscal year ended January 31, 2022 consisted of the following (in thousands): Amounts Goodwill as of January 31, 2021 $ 83,566 Goodwill acquired (1) 334,294 Foreign currency translation (1,415) Goodwill as of January 31, 2022 $ 416,445 __________________________________ (1) Goodwill acquired resulted from the acquisition of Humio and SecureCircle. Refer to Note 14, Acquisitions, for additional information. Other Assets, Noncurrent Other assets, noncurrent consisted of the following (in thousands): January 31, 2022 2021 Other assets $ 13,348 $ 8,627 Deferred income tax asset 4,802 1,328 Deferred finance cost 4,620 4,355 Deposits 2,576 2,802 Other assets, noncurrent $ 25,346 $ 17,112 Accrued Expenses Accrued expenses consisted of the following (in thousands): January 31, 2022 2021 Web hosting services $ 23,711 $ 14,187 Other accrued expenses 14,451 11,372 Accrued legal and accounting 14,166 5,709 Accrued purchases of property and equipment 10,878 4,570 Accrued interest expense 10,375 687 Accrued marketing 9,801 14,592 Accrued expenses $ 83,382 $ 51,117 Accrued Payroll and Benefits Accrued payroll and benefits consisted of the following (in thousands): January 31, 2022 2021 Accrued commissions $ 47,298 $ 32,300 Accrued payroll and related expenses 24,910 16,528 Accrued bonuses 17,591 12,110 Employee Stock Purchase Plan 14,764 10,969 Accrued payroll and benefits $ 104,563 $ 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 January 31, 2022, the Company had deferred $5.1 million of payroll taxes in other current liabilities. Other Current Liabilities Other current liabilities consisted of the following (in thousands): January 31, 2022 2021 Other current liabilities $ 12,820 $ 9,652 Income tax payable 5,781 2,639 Accrued taxes 4,914 2,837 Customer deposits 1,414 2,371 Other current liabilities $ 24,929 $ 17,499 |
Debt
Debt | 12 Months Ended |
Jan. 31, 2022 | |
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. On January 6, 2022, the Company modified the A&R Credit Agreement (the “Amended A&R Credit Agreement”) among CrowdStrike, Inc., as borrower, CrowdStrike Holdings, Inc., as guarantor, and Silicon Valley Bank and the other lenders party thereto. There were no changes to the borrowing amounts or maturity date. Under the Amended A&R Credit Agreement, revolving loans are Alternate Base Rate (“ABR”) Loans. 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 on such day plus 0.50%, and (c) the Term Secured Overnight Finance Rate (the “Term SOFR”) for a one-month tenor in effect on such day 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 January 31, 2022. The Amended 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 Amended 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 Amended A&R Credit Agreement as of January 31, 2022. 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 to 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 the 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 $24.0 million and $0.8 million, respectively, during the fiscal year ended January 31, 2022 and January 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 January 31, 2022, 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 January 31, 2022 was approximately $708.7 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 | 12 Months Ended |
Jan. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s geographical breakdown of its loss before provision for income taxes for the fiscal years ended January 31, 2022, January 31, 2021, and January 31, 2020 is as follows (in thousands): Year Ended January 31, 2022 2021 2020 Domestic $ (179,334) $ (94,713) $ (149,807) International 19,311 6,844 10,025 Loss before provision for income taxes $ (160,023) $ (87,869) $ (139,782) The components of the provision for income taxes during the fiscal years ended January 31, 2022, January 31, 2021, and January 31, 2020 are as follows (in thousands): Year Ended January 31, 2022 2021 2020 Current Federal $ — $ — $ — State 611 401 104 Foreign 85,700 5,811 2,574 Total current 86,311 6,212 2,678 Deferred Federal (363) (136) (362) State (63) (317) (57) Foreign (13,530) (999) (262) Total deferred (13,956) (1,452) (681) Provision for income taxes $ 72,355 $ 4,760 $ 1,997 The following table provides a reconciliation between income taxes computed at the federal statutory rate and the provision for income taxes during the fiscal years ended January 31, 2022 , January 31, 2021, and January 31, 2020 (in thousands): As of January 31, 2022 2021 2020 Provision for income taxes at statutory rate $ (33,605) $ (18,453) $ (29,354) State income taxes, net of federal benefits 673 — 25 Foreign tax rate differential 574 1,994 207 Research and other credits (19,113) (9,373) (1,534) Stock-based compensation (145,964) (140,489) (43,477) Non-deductible expenses 2,783 2,212 1,773 Change in unrecognized tax benefits — — (2,659) Change in valuation allowance 210,680 168,869 77,016 Tax impact of restructuring 57,236 — — Other (909) — — Provision for income taxes $ 72,355 $ 4,760 $ 1,997 The Company recognized an income tax expense of $72.4 million, $4.8 million, and $2.0 million for the fiscal years January 31, 2022, January 31, 2021 and January 31, 2020, respectively. The tax expense for the fiscal years ended January 31, 2021 and January 31, 2020 was primarily attributable to pre-tax foreign earnings and withholding taxes related to customer payments in certain foreign jurisdictions in which the Company conducts business. The tax expense for the fiscal year ended January 31, 2022 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 statement of operations, the Company generated a taxable gain in the foreign jurisdiction resulting in an additional tax expense of $57.2 million. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities as of January 31, 2022 and January 31, 2021 are as follows (in thousands): As of January 31, 2022 2021 Deferred tax assets Net operating loss carryforwards $ 428,238 $ 289,889 Research and other credit carryforwards 56,539 22,778 Intangible assets 61,008 — Stock-based compensation 33,202 20,154 Deferred revenue 34,425 21,595 Accrued expenses 12,550 7,791 Operating lease liabilities 10,144 10,718 Capitalized research and development 154,625 63,158 Other, net 4,514 — Gross deferred assets 795,245 436,083 Less: Valuation allowance (770,861) (413,828) Total deferred tax assets 24,384 22,255 Deferred tax liabilities Property and equipment, net (8,769) (4,446) Capitalized Commissions (1,632) (2,960) Intangible assets — (3,697) Operating right-of-use assets (9,256) (9,610) Other, net — (302) Total deferred tax liabilities (19,657) (21,015) Net deferred tax assets (liabilities) $ 4,727 $ 1,240 At each reporting date, the Company has established a valuation allowance against its U.S. net deferred tax assets due to the uncertainty surrounding the realization of those assets. During the fiscal year ended January 31, 2020, the Company has established a valuation allowance against its net U.K. deferred tax assets due to uncertainty surrounding the realization of those assets. The Company periodically evaluates the recoverability of the deferred tax assets and, when it is determined to be more-likely-than-not that the deferred tax assets are realizable, the valuation allowance is reduced. During the fiscal years ended January 31, 2022, January 31, 2021, and January 31, 2020, the valuation allowance increased by $357.0 million, $206.2 million, and $87.2 million, respectively. The increase in the valuation allowance during the fiscal years ended January 31, 2022, January 31, 2021 and January 31, 2020 was primarily driven by losses generated in the United States and United Kingdom. As of January 31, 2022, January 31, 2021, and January 31, 2020 the valuation allowance for deferred taxes balance was $770.9 million, $413.8 million, and $207.6 million, respectively. As of January 31, 2022, the Company had aggregate federal and California net operating loss carryforwards of $1.6 billion and $168.9 million, respectively, which may be available to offset future taxable income for income tax purposes. The federal and California net operating loss carryforwards begin to expire in fiscal 2031 through fiscal 2042. In addition, for federal losses generated after December 31, 2017, the Tax Cuts and Jobs Act of 2017 (“Tax Act”) modified the maximum deduction of net operating loss, eliminated carryback, and provided an indefinite carryforward. As of January 31, 2022, net operating loss carryforwards for other states total $868.0 million which begin to expire in fiscal 2023 through fiscal 2042. As of January 31, 2022, net operating loss carryforwards for United Kingdom total $81.1 million which are carried forward indefinitely. As of January 31, 2022, the Company had federal and California research and development credit (“R&D credit”) carryforwards of $65.6 million and $13.7 million, respectively. The federal R&D credit carryforwards will begin to expire in fiscal 2035 though fiscal 2042. The California R&D credits are carried forward indefinitely. Realization of these net operating loss and research and development credit carryforwards depends on future income, and there is a risk that the Company’s existing carryforwards could expire unused and be unavailable to offset future income tax liabilities. The Internal Revenue Code imposes limitations on a corporation’s ability to utilize net operating loss (“NOLs”) and credit carryovers if it experiences an ownership change as defined in Section 382. In general terms, an ownership change may result from transactions increasing the ownership of certain stockholders in the stock of a corporation by more than 50% over a three-year period. If an ownership change has occurred, or were to occur, utilization of the Company’s NOLs and credit carryovers could be restricted. The Company’s net operating losses and credit carryovers are not currently subject to a limitation due to an ownership change. The total gross unrecognized tax benefit as of January 31, 2022, January 31, 2021 and January 31, 2020 were $26.3 million, $24.4 million, and $5.5 million, respectively. As of January 31, 2022, the Company had $1.9 million of unrecognized tax benefits, which, if recognized, would affect the Company’s effective tax rate. The Company’s policy is to classify interest and penalties related to unrecognized tax benefits as part of the income tax provision in the consolidated statements of operations. The Company had incurred insignificant amounts of interest and penalties related to unrecognized tax benefits as of January 31, 2022 and did not accrue interest and penalties in prior periods. During the fiscal years ended January 31, 2022 and 2021, the net increase in uncertain tax benefits was a result of research and development credits. During the fiscal year ended January 31, 2020, the uncertain tax benefits balance decreased due to the application of IRS directive in determining the research credit. The potential change in unrecognized tax benefits during the next 12 months is not expected to be material. The following is a rollforward of the total gross unrecognized tax benefits for the fiscal years ended January 31, 2022, January 31, 2021, and January 31, 2020 (in thousands): Balance as of February 1, 2019 $ 8,128 Decreases in current period tax positions (2,659) Balance as of January 31, 2020 5,469 Increases in prior period tax positions 6,926 Increase in current period tax positions 12,052 Balance as of January 31, 2021 24,447 Increases in prior period tax positions 186 Decreases in prior period tax positions (9,772) Increase in current period tax positions 11,463 Balance as of January 31, 2022 $ 26,324 The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. Tax years 2011 and onwards remain subject to examination by U.S. taxing authorities due to the Company’s net operating losses and R&D credit carryforwards. The Company does not provide for federal and state income taxes on the undistributed earnings of its foreign subsidiaries as such earnings are to be reinvested offshore indefinitely. As a result of the Tax Act, if the Company repatriated these earnings, the tax impact of future distributions of foreign earnings would generally be limited to withholding tax from local jurisdictions, and the resulting income tax liability would be insignificant. |
Equity Transactions
Equity Transactions | 12 Months Ended |
Jan. 31, 2022 | |
Equity [Abstract] | |
Equity Transactions | Equity Transactions Common Stock In connection with the IPO, on June 14, 2019, the Company filed an Amended and Restated Certificate of Incorporation which authorizes the issuance of 2,000,000,000 shares of Class A common stock with a par value of $0.0005 per share, 300,000,000 shares of Class B common stock with a par value of $0.0005 per share, and 100,000,000 shares of undesignated preferred stock with a par value of $0.0005 per share. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting and conversion rights. Each share of Class A common stock is entitled to one vote per share. Each share of Class B common stock is entitled to ten votes per share and is convertible into one share of Class A common stock. Class A and Class B common stockholders are not entitled to receive dividends unless declared by the Company’s board of directors. Claims Settlement |
Leases
Leases | 12 Months Ended |
Jan. 31, 2022 | |
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 were $11.8 million and $11.0 million for the fiscal years ended January 31, 2022 and January 31, 2021, respectively. Operating lease liabilities arising from obtaining operating right of-use assets were $4.9 million and $6.2 million for the fiscal years ended January 31, 2022 and January 31, 2021, respectively. The weighted-average remaining lease term are 3.0 years and 4.1 years as of January 31, 2022 and January 31, 2021, respectively. The weighted-average discount rates are 5.4% and 5.9% as of January 31, 2022 and January 31, 2021, respectively. The component of lease costs was as follows (in thousands): Year Ended January 31, 2022 2021 Lease cost Operating lease cost $ 11,262 $ 10,308 Short-term lease cost 1,918 1,957 Variable lease cost 4,874 3,007 Total lease cost $ 18,054 $ 15,272 Total rent expense recognized prior to the adoption of Topic 842 were $10.3 million for the year ended January 31, 2020. There was no sublease income for the fiscal year ended January 31, 2022 or January 31, 2021. As of January 31, 2022, 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): January 31, 2022 Fiscal 2023 $ 10,539 Fiscal 2024 11,861 Fiscal 2025 10,728 Fiscal 2026 4,791 Fiscal 2027 558 Total operating lease payments 38,477 Less: imputed interest (3,278) Present value of operating lease liabilities $ 35,199 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jan. 31, 2022 | |
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: Year Ended January 31, 2022 2021 2020 Expected term (in years) 3.82 – 5.63 3.17 – 6.05 6.05 Risk-free interest rate 0.6% – 1.0% 0.2% – 0.4% 2.0% – 2.4% Expected stock price volatility 36.1% – 37.1% 35.8% – 37.3% 37.7% – 37.9% Dividend yield — % — % — % The following table is a summary of stock option activity for the fiscal year ended January 31, 2022: Number of Weighted- (in thousands) Options outstanding at January 31, 2021 6,646 $ 8.24 Granted 93 $ 3.19 Exercised (2,598) $ 6.12 Canceled (203) $ 28.42 Options outstanding at January 31, 2022 3,938 $ 8.48 Options vested and expected to vest at January 31, 2022 3,938 $ 8.48 Options exercisable at January 31, 2022 2,767 $ 6.99 Options outstanding include 362,406 options that were unvested as of January 31, 2022. The aggregate intrinsic value of options vested and exercisable was $480.5 million, $711.4 million, and $469.6 million as of January 31, 2022, January 31, 2021, and January 31, 2020, respectively. The weighted-average remaining contractual term of options vested and exercisable was 5.7 years, 6.4 years, and 6.7 years as of January 31, 2022, January 31, 2021, and January 31, 2020, respectively. The weighted-average grant date fair values of all options granted was $180.08, $66.31, and $9.51 per share during the fiscal years ended January 31, 2022, January 31, 2021, and January 31, 2020, respectively. The total intrinsic value of all options exercised was $570.9 million, $847.5 million, and $407.9 million during the fiscal years ended January 31, 2022, January 31, 2021, and January 31, 2020, respectively. The aggregate intrinsic value of stock options outstanding as of January 31, 2022, January 31, 2021, and January 31, 2020 was $678.0 million, $1.4 billion, and $816.3 million, 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 6.1 years, 7.0 years, and 7.4 years as of January 31, 2022, January 31, 2021, and January 31, 2020, respectively. Total unrecognized stock-based compensation expense related to unvested options was $16.6 million as of January 31, 2022. 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 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 during the fiscal year ended January 31, 2022 or January 31, 2021. As of January 31, 2022, the number of shares of common stock related to early exercised stock options subject to repurchase was 197,994 shares for $2.2 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 consolidated balance sheet and statements of stockholders’ equity (deficit). 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 are generally amortized on a straight-line basis. Total unrecognized stock-based compensation expense related to unvested RSUs was $702.3 million as of January 31, 2022. This expense is expected to be amortized (subject to acceleration or straight-line basis) over a weighted-average vesting period of 2.3 years. Total unrecognized stock-based compensation expense related to unvested RSUs was $393.9 million as of January 31, 2021. This expense is expected to be amortized on an accelerated attribution method over a weighted-average vesting period of 2.6 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 $42.9 million as of January 31, 2022. This expense is expected to be amortized over a weighted-average vesting period of 1.2 years. Total unrecognized stock-based compensation expense related to unvested PSUs was $24.8 million as of January 31, 2021. This expense is expected to be amortized over a weighted-average vesting period of 1.3 years. Special PSU Awards In fiscal 2022 the Company’s Board of Directors granted 655,000 performance stock units (the “Special PSU Awards”) to certain executives under the 2019 Plan. The Special PSU Awards 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 Awards 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 Awards underlying the applicable tranche will service vest on the first anniversary of the vesting commencement date applicable to such tranche of the Special PSU Awards (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 Awards using a Monte Carlo simulation valuation model. The risk-free interest rates used were 0.85% - 1.51%, which was 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 was a blended volatility rate of 54.89% - 55.36%, which includes 50% weight on the Company’s historical volatility calculated from daily stock returns over a 2.21 - 2.58 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 Awards are recognized using the accelerated attribution method over the longer of the derived service period and the explicit service period. Total unrecognized stock-based compensation expense related to the unvested portion of the Special PSU Awards was $118.4 million as of January 31, 2022. This expense is expected to be amortized over a weighted-average vesting period of 2.8 years. The following table is a summary of RSUs, PSUs and the Special PSU Awards activities for the fiscal year ended January 31, 2022: Number of Weighted-Average (in thousands) RSUs and PSUs outstanding at January 31, 2021 8,449 $ 59.27 Granted 3,387 $ 224.19 Released (3,408) $ 62.62 Performance adjustment (1) 153 $ 58.15 Forfeited (695) $ 99.78 RSUs and PSUs outstanding at January 31, 2022 7,886 $ 125.04 RSUs and PSUs expected to vest at January 31, 2022 7,886 $ 125.04 ___________________________ (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 $6.2 million and $3.5 million for the fiscal years ended January 31, 2022 and January 31, 2021, respectively. The ESPP offers a two-year look-back feature as well as a rollover feature that provides for an offering period to be rolled over to a new lower-priced offering if the offering price of the new offering period is less than that of the current offering period. An ESPP rollover occurred when the Company’s closing stock price on December 10, 2021 was below the closing stock price on June 11, 2021, which triggered a new 24-month offering period through December 10, 2023 and resulted in an immaterial modification charge during the fiscal year ended January 31, 2022. Employee payroll contributions ultimately used to purchase shares are reclassified to stockholders’ equity on the purchase date. ESPP employee payroll contributions accrued of $14.8 million and $11.0 million as of January 31, 2022 and January 31, 2021, respectively, and are included within accrued payroll and benefits in the 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: Year Ended January 31, 2022 2021 2020 Expected term (in years) 0.5 – 2.0 0.5 – 2.0 0.5 – 2.0 Risk-free interest rate 0.0% – 1.9% 0.1% – 2.0% 1.6% – 2.2% Expected stock price volatility 33.0% – 55.9% 30.1% – 54.3% 30.1% – 35.7% Dividend yield — % —% — % Stock-Based Compensation Expense Stock-based compensation expense included in the consolidated statements of operations is as follows (in thousands): Year Ended January 31, 2022 2021 2020 Subscription cost of revenue $ 22,044 $ 11,705 $ 5,226 Professional services cost of revenue 10,050 6,005 2,486 Sales and marketing 89,634 50,557 23,919 Research and development 102,027 40,274 15,403 General and administrative 86,197 41,134 32,906 Total stock-based compensation expense $ 309,952 $ 149,675 $ 79,940 |
Revenue, Deferred Revenue and R
Revenue, Deferred Revenue and Remaining Performance Obligations | 12 Months Ended |
Jan. 31, 2022 | |
Revenue Recognition and Deferred Revenue [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): Year Ended January 31, 2022 2021 2020 Amount % Revenue Amount % Revenue Amount % Revenue Channel Partners $ 1,093,336 75 % $ 655,031 75 % $ 331,279 69 % Direct Customers 358,258 25 % 219,407 25 % 150,134 31 % Total revenue $ 1,451,594 100 % $ 874,438 100 % $ 481,413 100 % 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): Year Ended January 31, 2022 2021 2020 Amount % Revenue Amount % Revenue Amount % Revenue United States $ 1,046,474 72 % $ 627,402 72 % $ 356,513 74 % Europe, Middle East, and Africa 200,198 14 % 123,900 14 % 67,428 14 % Asia Pacific 142,686 10 % 80,185 9 % 37,672 8 % Other 62,236 4 % 42,951 5 % 19,800 4 % Total revenue $ 1,451,594 100 % $ 874,438 100 % $ 481,413 100 % No single country other than the United States represented 10% or more of the Company’s total revenue during the fiscal years ended January 31, 2022, January 31, 2021 or January 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 $696.7 million and $410.7 million for the fiscal years ended January 31, 2022 and January 31, 2021, 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): Year Ended January 31, 2022 2021 Beginning Balance $ 911,895 $ 571,168 Additions to deferred revenue 2,069,020 1,215,165 Recognition of deferred revenue (1,451,594) (874,438) Ending Balance $ 1,529,321 $ 911,895 Remaining Performance Obligations The Company’s subscription contracts with its customers have a typical term of one Costs to Obtain and Fulfill 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 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 referral 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 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 year ended January 31, 2022. The following table summarizes the activity of deferred contract acquisition costs (in thousands): Year Ended January 31, 2022 2021 Beginning balance $ 198,756 $ 114,206 Capitalization of contract acquisition costs 234,308 150,975 Amortization of deferred contract acquisition costs (113,884) (66,425) Ending balance $ 319,180 $ 198,756 Deferred contract acquisition costs, current $ 126,822 $ 80,850 Deferred contract acquisition costs, noncurrent 192,358 117,906 Total deferred contract acquisition costs $ 319,180 $ 198,756 |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Jan. 31, 2022 | |
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 January 31, 2022, the Company is committed to spend $48.1 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 January 31, 2022 with expected date of payment is as follows (in thousands): Total Fiscal 2023 $ 67,540 Fiscal 2024 72,438 Fiscal 2025 27,039 Fiscal 2026 7,094 Fiscal 2027 2,944 Thereafter 564 Total purchase commitments $ 177,619 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 January 31, 2022, the Company had utilized $53.2 million of this commitment. The remaining commitment is excluded from the table above and the Company expects to meet its remaining commitment with AWS. Letters of Credit As of January 31, 2022 and January 31, 2021, the Company had an unused standby letter of credit for $0.4 million securing its facility in Sunnyvale, California. As of January 31, 2022 and January 31, 2021, the Company had an unused standby letter of credit for $0.8 million and $1.0 million, respectively, securing the facility housing its principal executive offices 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. 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 material liability has been recorded as of January 31, 2022 or January 31, 2021. In March 2022, Webroot, Inc. and Open Text, Inc. (collectively, “Webroot”) filed a lawsuit against the Company in federal court in the Western District of Texas alleging that certain of the Company’s products infringe six patents held by them. In the complaint, Webroot sought unspecified damages, attorneys’ fees and a permanent injunction. The Company is evaluating Webroot’s claims and intends to vigorously defend against them. 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 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 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 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 January 31, 2022 or January 31, 2021 . |
Geographic Information
Geographic Information | 12 Months Ended |
Jan. 31, 2022 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information The Company’s long-lived assets are composed of property and equipment, net, and operating lease right-of-use assets, are summarized by geographic area as follows (in thousands): January 31, 2022 2021 United States $ 256,282 $ 174,889 International 36,030 28,609 Total property and equipment, net and operating lease right-of-use assets $ 292,312 $ 203,498 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jan. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Subscription and Professional Services Revenue from Related Parties During the fiscal years ended January 31, 2022, January 31, 2021 and January 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 $7.7 million, $4.3 million, and $9.0 million during the fiscal years ended January 31, 2022, January 31, 2021 and January 31, 2020, respectively. Accounts receivable associated with these related parties was $2.2 million, and $1.3 million as of January 31, 2022 and January 31, 2021, respectively. Accounts Payable to Related Parties During the fiscal years ended January 31, 2022, January 31, 2021 and January 31, 2020, the Company purchased goods and services totaling $26.0 million, $8.8 million, and $3.2 million, respectively, from certain investors and companies with whom its Board of Directors are affiliated with. The accounts payable to such vendors was $3.7 million and immaterial as of January 31, 2022 and January 31, 2021, respectively. |
Acquisitions
Acquisitions | 12 Months Ended |
Jan. 31, 2022 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Secure Circle, LLC On November 29, 2021, the Company acquired 100% of the equity interest of Secure Circle, LLC (“SecureCircle”), a SaaS-based cybersecurity service that extends Zero Trust security to data on, from and to the endpoint. The acquisition has been accounted for as a business combination. The total consideration transferred was $60.8 million, which consisted solely of cash. The purchase price was allocated, on a preliminary basis, to identified intangible assets, which include developed technology and customer relationships of $18.3 million, net tangible assets acquired of $(0.5) million and goodwill of $43.0 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 SecureCircle, planned growth in new markets and synergies expected to be achieved from the integration of SecureCircle. Goodwill was deductible for income tax purposes. Subsequent to the closing of the acquisition, SecureCircle 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 components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (dollars in thousands): Fair Value Useful Life (in months) Developed technology $ 15,300 72 Customer relationships 3,000 72 Total intangible assets acquired $ 18,300 The Company incurred acquisition expense of $1.2 million for the fiscal year ended January 31, 2022. The acquisition costs are recorded in general and administrative expenses on the Company’s consolidated statement of operations. The results of operations of SecureCircle have been included in the Company’s consolidated financial statements from the date of acquisition. The acquisition of SecureCircle did not have a material impact on the Company’s consolidated financial statements, and therefore historical and pro forma disclosures have not been presented. 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, 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 (dollars 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 acquisition expense of $5.0 million for the fiscal year ended January 31, 2022. The acquisition costs are recorded in general and administrative expenses on the Company’s consolidated statement of operations. The results of operations of Humio have been included in the Company’s consolidated financial statements from the date of acquisition. The acquisition of Humio did not have a material impact on the Company’s 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”). The Acquisition has been accounted for 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 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 (dollars 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 incurred an immaterial amount of acquisition expense for the fiscal year ended January 31, 2022. The acquisition costs are recorded in general and administrative expenses on the Company’s consolidated statement of operations. The results of operations of Preempt Security have been included in the Company’s consolidated financial statements from the date of acquisition. The acquisition of Preempt Security did not have a material impact on the Company’s 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 | 12 Months Ended |
Jan. 31, 2022 | |
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): Year Ended January 31, 2022 2021 2020 Numerator: Net loss attributable to Class A and Class B CrowdStrike common stockholders $ (234,802) $ (92,629) $ (141,779) 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 227,142 217,756 148,062 Net loss per share attributable to Class A and Class B CrowdStrike common stockholders, basic and diluted $ (1.03) $ (0.43) $ (0.96) 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): Year Ended January 31, 2022 2021 2020 Shares of common stock subject to repurchase from outstanding stock options 198 548 984 RSUs and PSUs subject to future vesting 7,886 8,449 6,063 Shares of common stock issuable from stock options 3,938 6,646 14,689 Share purchase rights under the employee stock purchase plan 642 872 1,458 Potential common shares excluded from diluted net loss per share 12,664 16,515 23,194 The above table excludes founder holdbacks related to business combinations. A variable number of shares will be issued upon vesting to settle a fixed monetary amount of $18.5 million, which shares are contingent upon continued employment with the Company. The share price will be determined based on the Company’s average stock price or the volume weighted average stock price 5 days prior to each vesting date. As of January 31, 2022, 14,667 shares were issued to settle founder holdbacks at a weighted average price of $243.72 per share. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of PresentationThe accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). Certain prior year amounts in the consolidated statements of cash flows were reclassified to conform to the current period presentation. These reclassifications had no effect on net cash provided by (used in) operating, investing, and financing activities and cash and cash equivalent amounts. Effective February 1, 2020, the Company adopted the Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). Prior periods were not retrospectively recast, and accordingly, the consolidated statements of operations for the fiscal year ended January 31, 2020 was prepared using the prior lease accounting standard referred to as Accounting Standard Codification (“ASC”) Topic 840. |
Principles of Consolidation | Principles of Consolidation The 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 consolidated financial statements and accompanying notes. These estimates are based on information available as of the date of the 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 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, and the fair value of assets acquired and liabilities assumed for business combinations. 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 January 31, 2022. While there was not a material impact to the Company’s consolidated financial statements as of and for the year ended January 31, 2022, 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 consolidated financial statements in future reporting periods. |
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. 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. |
Cash Equivalents | Cash EquivalentsThe Company considers all highly liquid investments with original maturities of three months or less at date of purchase to be cash equivalents. As of January 31, 2022, the Company had $950.6 million of cash equivalents. As of January 31, 2021, the Company did not have any cash equivalents. |
Strategic Investments | The Company elected the measurement alternative for the non-marketable equity investments of the Falcon Funds where eligible. Under the measurement alternative, the non-marketable equity investments are measured at cost, less any impairment, plus or minus adjustments resulting from price changes from observable transactions of identical or similar securities of the same issuer. All gains and losses on strategic investments, realized and unrealized, are recognized in Other income (expense), net. Strategic investments are classified within Level 3 in the fair value hierarchy as only an impairment of observable adjustment is recognized based on price changes from observable transactions of identical or similar securities of the same issuer and other unobservable inputs including volatility, rights, and obligations of the investments. The Company classifies the investments in the Falcon Funds as a non-current asset called Strategic Investments on the consolidated balance sheets as of January 31, 2022. The Company has recognized an unrealized gain for its portion of ownership of the strategic investments in the amount of $2.4 million, net of gain attributable to non-controlling interest of $2.4 million, during the fiscal year ended January 31, 2022. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments consist of cash equivalents, strategic investments, accounts receivable, accounts payable, accrued expenses, the redeemable convertible preferred stock warrant liability, and the Senior Notes. The carrying values of cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value due to their short-term nature. The Senior Notes are carried at the initially allocated liability value less unamortized debt discount and issuance costs on the Company’s consolidated balance sheet. The Company discloses the fair value of the Senior Notes at each reporting period for disclosure purposes only. Refer to Note 3, Investments and Fair Value Measurements, regarding the fair value of the Company’s non-marketable securities and Note 5, Debt, for the fair value of the Company’s Senior Notes. The Company reports the redeemable convertible preferred stock warrant liability at fair value (see Note 3, Investments and Fair Value Measurements). The warrants issued by the Company for redeemable convertible preferred stock in January 2015, December 2016, and March 2017 have been recorded as a liability based on “Level 3” inputs, which consist of unobservable inputs and reflect management’s estimates of assumptions that market participants would use in pricing the liability. The fair value of the warrants was determined using the Black-Scholes option-pricing model, which is affected by changes in inputs to that model including the Company’s stock price, expected stock price volatility, risk-free rate, and contractual term. Immediately prior to the closing of the IPO on June 14, 2019, the redeemable convertible preferred stock warrants converted into 336,386 warrants to purchase Class B common stock on a one-to-one basis. The redeemable convertible preferred stock warrant liability was reclassified to additional paid-in capital upon the closing of the IPO. |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded at the invoiced amount and are non-interest bearing. Accounts receivable are stated at their net realizable value, net of the allowance for credit losses. The Company has a well-established collections history from its customers. Credit is extended to customers based on an evaluation of their financial condition and other factors. The Company generally does not require collateral from its customers; however, the Company may require payment prior to commencing service in certain instances to limit credit risk. The Company regularly reviews the adequacy of the allowance for credit loss by considering various factors including the age of each outstanding invoice, each customer’s expected ability to pay, historical loss rates and expectations of forward-looking loss estimates to determine whether the allowance is appropriate. Amounts deemed uncollectible are written off against the allowance for credit loss. |
Software Implementation Costs | Software Implementation CostsThe Company contracts with third party information technology providers for various service arrangements including software, platform, and information technology infrastructure. The Company capitalizes the implementation cost incurred to develop or obtain internal-use software in such arrangements which are recorded as part of property and equipment, net in the consolidated balance sheets. All capitalized implementation costs are amortized over the term of the arrangement which includes reasonably certain renewals. Costs incurred during the preliminary project and post implement stage are expensed as the activities are performed. |
Deferred Offering Costs | Deferred Offering CostsDeferred offering costs consisted of fees and expenses incurred in connection with the sale of the Company’s common stock in an IPO, including legal, accounting, printing and other IPO-related costs. Upon the close of the IPO on June 14, 2019, total deferred offering costs of $5.9 million were reclassified to stockholders’ equity and recorded against the proceeds from the offering. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net, is stated at historical cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets as follows: Data center and other computer equipment 3 – 5 years Furniture and equipment 5 years Purchased software 3 – 5 years Capitalized internal-use software and website development 3 years Leasehold improvements Estimated useful life or term of the lease, whichever is shorter Expenditures for routine maintenance and repairs are charged to operating expense as incurred. Major renewals and improvements are capitalized and depreciated over their estimated useful lives. Upon retirement or other disposition of property and equipment, the cost and accumulated depreciation are removed from the accounts, and any gain or loss is recorded in operating expenses in the consolidated statement of operations. The Company reviews for impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying amount of the asset (or asset group) may not be recoverable. Events and changes in circumstances considered by the Company in determining whether the carrying value of long-lived assets may not be recoverable, include, but are not limited to: significant changes in performance relative to expected operating results, significant changes in the use of the assets, significant negative industry or economic trends, and changes in the Company’s business strategy. Impairment testing is performed at an asset level that represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (an “asset group”). An impairment loss would be recognized when estimated future cash flows expected to result from the use of the asset (or asset group) and its eventual disposition is less than its carrying amount. No impairment indicators were identified by the Company and no impairment losses were recorded by the Company during the fiscal years ended January 31, 2022, January 31, 2021, and January 31, 2020. |
Capitalized Internal-Use Software and Website Development Costs | Capitalized Internal-Use Software and Website Development Costs The Company capitalizes certain development costs incurred in connection with its internal-use software and website development. These capitalized costs are primarily related to the Company’s cloud-delivered solution for next-generation endpoint protection as well as redefining, redesigning, and rebuilding crowdstrike.com. Costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct, are capitalized until the software and website are substantially complete and ready for its intended use. Capitalization ceases upon completion of all substantial testing. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Capitalized costs are recorded as property and equipment, net. Maintenance and training costs are expensed as incurred. Internal-use software and website development costs are amortized to cost of revenue on a straight-line basis over its estimated useful life of three years. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. |
Deferred Contract Acquisition Costs | Deferred Contract Acquisition Costs Under ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers, the Company capitalizes contract acquisition costs that are incremental to the acquisition of customer contracts. Contract acquisition costs are accrued and capitalized upon execution of the sales contract by the customer. 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 referral partners, earned upon the initial acquisition of a contract or subsequent upsell are amortized over an estimated period of benefit of four 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. |
Deferred Revenue | Deferred Revenue The deferred revenue balance consists of subscription and professional services which have been invoiced upfront and are recognized as revenue only when the revenue recognition criteria are met. The Company’s subscription contracts are typically invoiced to its customers at the beginning of the term, or in some instances, such as in multi-year arrangements, in installments. Professional services are either invoiced upfront, invoiced in installments, or invoiced as the services are performed. Accordingly, the Company’s deferred revenue balance does not include revenue for future years of multi-year non-cancellable contracts that have not yet been billed. The Company recognizes subscription revenue ratably over the contract term beginning on the commencement date of each contract, the date that services are made available to customers. The Company recognizes professional services revenue as services are delivered. Once services are available to customers, the Company records amounts due in accounts receivable and in deferred revenue. To the extent the Company bills customers in advance of the contract commencement date, the accounts receivable and corresponding deferred revenue amounts are netted to zero on the consolidated balance sheets, unless such amounts have been paid as of the balance sheet date. |
Redeemable Convertible Preferred Stock Warrants | Redeemable Convertible Preferred Stock Warrants Warrants related to the Company’s redeemable convertible preferred stock are classified as liabilities on the Company’s consolidated balance sheets. The warrants are subject to reassessment at each balance sheet date, and any change in fair value is recognized as a component of Other income (expense), net, in the consolidated statements of operations. The Company will continue to adjust the liability for changes in fair value until the earlier of the expiration or exercise of the warrants, or upon their automatic conversion into warrants to purchase common stock in connection with a qualified initial public offering such that they qualify for equity classification and no further remeasurement is required. Immediately prior to the closing of the IPO on June 14, 2019, the redeemable convertible preferred stock warrants converted into 336,386 warrants to purchase Class B common stock on a one-to-one basis. The redeemable convertible preferred stock warrant liability was reclassified to additional paid-in capital. Within the same month, the Company received notice from the holders of 336,386 warrants as to their intentions to exercise the warrants for shares of common stock of the Company. Such shares were settled via net settlement method, which was elected by the holders to reduce the number of shares issued upon exercise to reflect net settlement of the exercise price, resulting in the issuance of 322,278 shares of the Company’s common stock. |
Revenue Recognition | Revenue Recognition In accordance with ASU 2014-09, Revenue from Contracts with Customers (“ASC 606”), revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration that the Company expects to be entitled to receive in exchange for these services. To achieve the core principle of this standard, the Company applies the following five steps: (1) Identify the contract with a customer The Company considers the terms and conditions of contracts with customers and its customary business practices in identifying contracts under ASC 606. The Company determines it has a contract with a customer when the contract is approved, each party’s rights regarding the services to be transferred can be identified, payment terms for the services can be identified, it has been determined that the customer has the ability and intent to pay, and the contract has commercial substance. The Company applies judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, credit and financial information pertaining to the customer. (2) Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from the Company or from third parties, and are distinct in the context of the contract, whereby the transfer of the services is separately identifiable from other promises in the contract. The Company’s performance obligations consist of (i) subscriptions and (ii) professional services. (3) Determine the transaction price The transaction price is determined based on the consideration which the Company is expected to be entitled to in exchange for transferring services to the customer. Variable consideration is included in the transaction price if it is probable that a significant future reversal of cumulative revenue under the contract will not occur. None of the Company’s contracts contain a significant financing component. (4) Allocate the transaction price to performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price (“SSP”). (5) Recognize revenue when or as performance obligations are satisfied Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised service to the customer. Revenue is recognized when control of the services is transferred to the customer, in an amount that reflects the consideration expected to be received in exchange for those services. The Company generates all its revenue from contracts with customers. Subscription Revenue The Company’s Falcon Platform technology solutions are subscription, SaaS offerings designed to continuously monitor, share, and mitigate risks from determined attackers. Customers do not have the right to take possession of the cloud-based software platform. Fees are based on several factors, including the solutions subscribed for by the customer and the number of endpoints purchased by the customer. The subscription fees are typically payable within 30 to 60 days after the execution of the arrangement, and thereafter upon renewal or subsequent installment. The Company initially records the subscription fees as deferred revenue and recognizes revenue on a straight-line basis over the term of the agreement. The typical subscription term is one Professional Services Revenue The Company offers several types of professional services including incident response and forensic services, surge forensic and malware analysis, and attribution analysis, which are focused on responding to imminent and direct threats, assessing vulnerabilities, and recommending solutions. These services are distinct from subscription services. Professional services do not result in significant customization of the subscription service. The Company’s professional services are available through time and material and fixed fee agreements. Revenue for time and material agreements is recognized as services are performed. Fixed fee contracts account for an immaterial portion of the Company’s revenue. Contracts with Multiple Performance Obligations Some contracts with customers contain multiple promised services consisting of subscription and professional services that are distinct and accounted for separately. The transaction price is allocated to the separate performance obligations on a relative SSP basis. The SSP is the price at which the Company would sell promised subscription or professional services separately to a customer. Judgment is required to determine the SSP for each distinct performance obligation. The Company determines SSP based on its overall pricing objectives, taking into consideration the type of subscription or professional service and the number of endpoints. Variable Consideration Revenue from sales is recorded at the net sales price, which is the transaction price, and may include estimates of variable consideration. The amount of variable consideration that is included in the transaction price is constrained and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue will not occur when the uncertainty is resolved. If subscriptions do not meet certain service level commitments, the Company’s customers are entitled to receive service credits, and in certain cases, refunds, each representing a form of variable consideration. The Company has historically not experienced any significant incidents affecting the defined levels of reliability and performance as required by its subscription contracts. Accordingly, any estimated refunds related to these agreements in the consolidated financial statements is not material during the periods presented. The Company provides rebates and other credits within its contracts with certain resellers, which are estimated based on the expected value to be earned or claimed on the related sales transaction. Overall, the transaction price is reduced to reflect the Company’s estimate of the amount of consideration to which it is entitled based on the terms of the contract. Estimated rebates and other credits were not material during the periods presented. |
Research and Development Expense | Research and Development Expense Research and development costs are expensed when incurred, except for certain internal-use software development costs, which may be capitalized as noted above. Research and development expenses consist primarily of personnel and related headcount costs, costs of professional services associated with the ongoing development of the Company’s technology, and allocated overhead. |
Advertising | AdvertisingAll advertising costs are expensed as incurred and are included in sales and marketing expense in the consolidated statements of operations |
Stock-Based Compensation | Stock-Based Compensation Compensation related to stock-based awards to employees and directors are measured and recognized in the Company’s consolidated statements of operations based on the fair value of the awards granted. The Company estimates the fair value of its stock options using the Black-Scholes option-pricing model. The stock-based compensation expense relating to stock options are recognized on a straight-line basis over the period during which the employee or director is required to provide service in exchange for the award, usually the vesting period, which is generally four years. Restricted stock units (“RSUs”) are generally subject to a service-based vesting condition. The service-based vesting condition is generally with a vesting term of four years. The valuation of such RSUs is based solely on the fair value of the Company’s stock price on the date of grant and the corresponding compensation expense are being amortized on a straight-line basis. Performance-based stock units (“PSUs”) are generally subject to both a service-based vesting condition and a performance-based vesting condition. The fair value of the award is equal to the grant date fair market value of the Company’s stock price. PSUs generally vest over a four-year period and subject to continued service through the applicable vesting dates. The stock-based compensation expense relating to PSUs are recognized using the accelerated attribution method over the requisite service period when it is probable that the performance condition will be satisfied. The Special PSU Awards are subject to the Company’s achievement of specified stock price hurdles and a service-based vesting condition. The Company measured the fair value of the Special PSU Awards using a Monte Carlo simulation valuation model. The stock-based compensation expense relating to the Special PSU Awards are recognized using the accelerated attribution method over the requisite service period. Employee Stock Purchase Plan (“ESPP”) grants are measured based on grant date at fair value using the Black-Scholes option-pricing model. The resulting fair value is recognized using the accelerated attribution method over a two The Company accounts for forfeitures as they occur for all stock-based awards. |
Business Combinations | Business Combinations The Company allocates the purchase price of acquired companies to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. The purchase price allocation process requires management to make significant estimates and assumptions with respect to intangible assets. Although the Company believes the assumptions and estimates it has made are reasonable, they are based in part on historical experience, market conditions and information obtained from management of the acquired companies and are inherently uncertain. Examples of judgments used to estimate the fair value of intangibles assets include, but are not limited to, future expected cash flows, expected customer attrition rates, estimated obsolescence rates, and discount rates. These estimates are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, which is one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded in the consolidated statement of operations. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company evaluates and tests the recoverability of goodwill for impairment at least annually, on January 31, or more frequently if circumstances indicate that goodwill may not be recoverable. A qualitative assessment is performed to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of its one reporting unit is less than its carrying value. In assessing the qualitative factors, the Company considers the impact of certain key factors including macroeconomic conditions, industry and market considerations, management turnover, changes in regulation, litigation matters, changes in enterprise value, and overall financial performance. If the Company determines it is more likely than not that the fair value of its one reporting unit is less than its carrying value, a quantitative test is performed by estimating the fair value of its reporting unit, including goodwill, and comparing it to its carrying value. If the fair value is lower than the carrying value, the excess is recognized as an impairment loss. No impairment was recorded during the fiscal years ended January 31, 2022, January 31, 2021, or January 31, 2020. The change in the goodwill balance during the fiscal year ended January 31, 2022 was due to the acquisitions of Humio Limited (“Humio”) and Secure Circle, LLC (“SecureCircle”) and changes in foreign currency exchange rates. The change in the goodwill balance during the fiscal year ended January 31, 2021 was due to the acquisition of Preempt Security, Inc. (“Preempt Security”) and changes in foreign currency exchange rates. See Note 4, Balance Sheet Components, and Note 14, Acquisitions, to the consolidated financial statements for more information. Intangible assets, net, consisting of developed technology, customer relationships, and other acquired intangibles, are stated at cost less accumulated amortization on the consolidated balance sheets. All intangible assets have been determined to have definite lives and are amortized on a straight-line basis over their estimated economic lives, which are generally one |
Operating Leases | Operating Leases The Company enters into operating lease arrangements for real estate assets related to office space. The Company determines if an arrangement is or contains a lease at inception by evaluating various factors, including whether a vendor’s right to substitute an identified asset is substantive. Lease classification is determined at the lease commencement date, which is the date the leased assets are made available for use. Operating leases are included in “Operating lease right-of-use assets”, “Operating lease liabilities, current”, and “Operating lease liabilities, noncurrent” in the consolidated balance sheets. The Company did not have any financing leases in any of the periods presented. Operating lease right-of-use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease payments consist of the fixed payments under the arrangement, less any lease incentives, such as tenant improvement allowances. Variable costs, such as maintenance and utilities based on actual usage, are not included in the measurement of right-to-use assets and lease liabilities but are expensed when the event determining the amount of variable consideration to be paid occurs. As the implicit rate of the leases is not determinable, the Company uses an incremental borrowing rate (“IBR”) based on the information available at the lease commencement date in determining the present value of lease payments. Lease expenses are recognized on a straight-line basis over the lease term. The Company uses the non-cancelable lease term when recognizing the right-of-use (“ROU”) assets and lease liabilities, unless it is reasonably certain that a renewal or termination option will be exercised. The Company accounts for lease components and non-lease components as a single lease component. Leases with a term of twelve months or less are not recognized on the consolidated balance sheets but are recognized as expense on a straight-line basis over the term of the lease. |
Debt Issuance Costs | Debt Issuance Costs Debt issuance costs incurred in connection with securing the Company’s financing arrangements are generally presented in the consolidated balance sheets as a direct deduction from the carrying amount of the outstanding borrowings, consistent with debt discounts. However, the Company has chosen to present debt issuance costs under “other long-term assets” for its revolving credit facility on the consolidated balance sheets regardless of whether the Company has any outstanding borrowings on the revolving credit facility. Debt issuance costs, net of accumulated amortization, were $4.6 million and $4.4 million as of January 31, 2022 and January 31, 2021, respectively. Debt issuance cost associated with the Senior Notes are recorded as a reduction to the carrying value of the Senior Notes on the consolidated balance sheets. The unamortized issuance costs relating to the Senior Notes were $2.3 million as of January 31, 2022. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions The functional currencies of the Company’s foreign subsidiaries are each country’s local currency. Assets and liabilities of the subsidiaries are translated into U.S. Dollars at exchange rates in effect at the reporting date. Amounts classified in stockholders’ equity (deficit) are translated at historical exchange rates. Revenue and expenses are translated at the average exchange rates during the period. The resulting translation adjustments are recorded in accumulated other comprehensive income (loss). Foreign currency transaction gains or losses, whether realized or unrealized, are reflected in the consolidated statements of operations within Other income (expense), net, and have not been material for all periods presented. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between the financial statement and tax basis of assets and liabilities and net operating loss and credit carryforwards using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Company accounts for unrecognized tax benefits using a more-likely-than-not threshold for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. The Company establishes a liability for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. The Company’s assumptions, judgments and estimates relative to the current provision for income taxes take into account current |
Segment Information | Segment InformationThe Company’s chief operating decision maker (“CODM”) is its chief executive officer. The CODM reviews financial information presented on a consolidated basis for the purposes of allocating resources and evaluating financial performance. Accordingly, management has determined that the Company operates as one operating and reportable segment. |
Net Loss per Share | Net Loss per Share The Company computes basic and diluted net loss per share attributable to common stockholders for Class A and Class B common stock using the two-class method required for participating securities. Under the two-class method, basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share attributable to common stockholders adjusts basic earnings per share for the potentially dilutive impact of outstanding stock options, RSUs, PSUs, ESPP obligations, and founder holdbacks. As the Company has reported losses for all periods presented, all potentially dilutive securities are antidilutive and accordingly, basic net loss per share equals diluted net loss per share. |
Recently Adopted and Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“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 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 the adoption of this ASU on its consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedules of Concentration of Credit Risk | Channel partners or direct customers who represented 10% or more of the Company’s accounts receivable were as follows: January 31, 2022 2021 Channel partner A (1) 9 % 10 % Customer A (1) 10 % 17 % _______________________________ (1) Channel Partner A and Customer A are controlled by the same company. Channel partners who represented 10% or more of the Company’s total revenue were as follows: Year Ended January 31, 2022 2021 2020 Channel partner B 7 % 8 % 10 % |
Schedule of Property Plant And Equipment, Useful Life | Property and equipment, net, is stated at historical cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets as follows: Data center and other computer equipment 3 – 5 years Furniture and equipment 5 years Purchased software 3 – 5 years Capitalized internal-use software and website development 3 years Leasehold improvements Estimated useful life or term of the lease, whichever is shorter |
Investments and Fair Value Me_2
Investments and Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on 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): January 31, 2022 January 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash equivalents (1) Money market funds $ 300,027 $ — $ — $ 300,027 $ — $ — $ — $ — Total assets $ 300,027 $ — $ — $ 300,027 $ — $ — $ — $ — ______________________________ (1) Included in “Cash and cash equivalents” on the consolidated balance sheets. |
Schedule of Strategic Investments | The following summarizes the changes in strategic investments, which are Level 3 within the fair value hierarchy (in thousands): Year Ended January 31 2022 2021 Total initial cost $ 18,809 $ 2,500 Unrealized gains due to changes in fair value 4,823 — Carrying value $ 23,632 $ 2,500 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following summarizes the changes in the redeemable convertible preferred stock warrant liability, which is classified as a Level 3 instrument: Year Ended January 31 2022 2021 2020 Balance at beginning of period $ — $ — $ 4,537 Adjustment resulting from change in fair value recognized in the consolidated statement of operations — — 6,022 Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital upon IPO — — (10,559) Balance at end of period $ — $ — $ — |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): January 31, 2022 2021 Prepaid software licenses $ 26,085 $ 20,596 Prepaid expenses 18,829 12,220 Prepaid marketing 17,629 10,852 Other current assets 12,783 4,566 Prepaid hosting services 4,026 5,383 Prepaid expenses and other current assets $ 79,352 $ 53,617 |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): January 31, 2022 2021 Data center and other computer equipment $ 198,297 $ 146,220 Capitalized internal-use software and website development costs 70,476 44,358 Leasehold improvements 22,029 19,733 Purchased software 5,232 3,211 Furniture and equipment 7,291 6,498 Construction in process 99,030 35,528 402,355 255,548 Less: Accumulated depreciation and amortization (141,778) (88,534) Property and equipment, net $ 260,577 $ 167,014 |
Schedule of Intangible Assets, Net | Total intangible assets, net consisted of the following (dollars in thousands): January 31, 2022 Weighted-Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Net Amount (in months) Developed technology $ 97,668 $ 12,000 $ 85,668 79 Customer relationships 12,045 1,973 10,072 72 Other acquired intangible assets 2,397 801 1,596 89 Total $ 112,110 $ 14,774 $ 97,336 January 31, 2021 Weighted-Average Remaining Useful Life 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 Expense | The estimated aggregate future amortization expense of intangible assets as of January 31, 2022 is as follows (in thousands): Total Fiscal 2023 $ 16,300 Fiscal 2024 15,608 Fiscal 2025 15,524 Fiscal 2026 14,437 Fiscal 2027 12,261 Thereafter 23,206 Total amortization expense $ 97,336 |
Schedule of Goodwill | The changes in goodwill during the fiscal year ended January 31, 2022 consisted of the following (in thousands): Amounts Goodwill as of January 31, 2021 $ 83,566 Goodwill acquired (1) 334,294 Foreign currency translation (1,415) Goodwill as of January 31, 2022 $ 416,445 __________________________________ (1) Goodwill acquired resulted from the acquisition of Humio and SecureCircle. Refer to Note 14, Acquisitions, for additional information. |
Schedule of Other Assets, Noncurrent | Other assets, noncurrent consisted of the following (in thousands): January 31, 2022 2021 Other assets $ 13,348 $ 8,627 Deferred income tax asset 4,802 1,328 Deferred finance cost 4,620 4,355 Deposits 2,576 2,802 Other assets, noncurrent $ 25,346 $ 17,112 |
Schedule of Accrued Expenses | Accrued Expenses Accrued expenses consisted of the following (in thousands): January 31, 2022 2021 Web hosting services $ 23,711 $ 14,187 Other accrued expenses 14,451 11,372 Accrued legal and accounting 14,166 5,709 Accrued purchases of property and equipment 10,878 4,570 Accrued interest expense 10,375 687 Accrued marketing 9,801 14,592 Accrued expenses $ 83,382 $ 51,117 |
Schedule of Accrued Payroll and Benefits | Accrued Payroll and Benefits Accrued payroll and benefits consisted of the following (in thousands): January 31, 2022 2021 Accrued commissions $ 47,298 $ 32,300 Accrued payroll and related expenses 24,910 16,528 Accrued bonuses 17,591 12,110 Employee Stock Purchase Plan 14,764 10,969 Accrued payroll and benefits $ 104,563 $ 71,907 |
Other Current Liabilities | Other current liabilities consisted of the following (in thousands): January 31, 2022 2021 Other current liabilities $ 12,820 $ 9,652 Income tax payable 5,781 2,639 Accrued taxes 4,914 2,837 Customer deposits 1,414 2,371 Other current liabilities $ 24,929 $ 17,499 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The Company’s geographical breakdown of its loss before provision for income taxes for the fiscal years ended January 31, 2022, January 31, 2021, and January 31, 2020 is as follows (in thousands): Year Ended January 31, 2022 2021 2020 Domestic $ (179,334) $ (94,713) $ (149,807) International 19,311 6,844 10,025 Loss before provision for income taxes $ (160,023) $ (87,869) $ (139,782) |
Schedule of Components of Income Tax Expense (Benefit) | The components of the provision for income taxes during the fiscal years ended January 31, 2022, January 31, 2021, and January 31, 2020 are as follows (in thousands): Year Ended January 31, 2022 2021 2020 Current Federal $ — $ — $ — State 611 401 104 Foreign 85,700 5,811 2,574 Total current 86,311 6,212 2,678 Deferred Federal (363) (136) (362) State (63) (317) (57) Foreign (13,530) (999) (262) Total deferred (13,956) (1,452) (681) Provision for income taxes $ 72,355 $ 4,760 $ 1,997 |
Schedule of Effective Income Tax Rate Reconciliation | The following table provides a reconciliation between income taxes computed at the federal statutory rate and the provision for income taxes during the fiscal years ended January 31, 2022 , January 31, 2021, and January 31, 2020 (in thousands): As of January 31, 2022 2021 2020 Provision for income taxes at statutory rate $ (33,605) $ (18,453) $ (29,354) State income taxes, net of federal benefits 673 — 25 Foreign tax rate differential 574 1,994 207 Research and other credits (19,113) (9,373) (1,534) Stock-based compensation (145,964) (140,489) (43,477) Non-deductible expenses 2,783 2,212 1,773 Change in unrecognized tax benefits — — (2,659) Change in valuation allowance 210,680 168,869 77,016 Tax impact of restructuring 57,236 — — Other (909) — — Provision for income taxes $ 72,355 $ 4,760 $ 1,997 |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities as of January 31, 2022 and January 31, 2021 are as follows (in thousands): As of January 31, 2022 2021 Deferred tax assets Net operating loss carryforwards $ 428,238 $ 289,889 Research and other credit carryforwards 56,539 22,778 Intangible assets 61,008 — Stock-based compensation 33,202 20,154 Deferred revenue 34,425 21,595 Accrued expenses 12,550 7,791 Operating lease liabilities 10,144 10,718 Capitalized research and development 154,625 63,158 Other, net 4,514 — Gross deferred assets 795,245 436,083 Less: Valuation allowance (770,861) (413,828) Total deferred tax assets 24,384 22,255 Deferred tax liabilities Property and equipment, net (8,769) (4,446) Capitalized Commissions (1,632) (2,960) Intangible assets — (3,697) Operating right-of-use assets (9,256) (9,610) Other, net — (302) Total deferred tax liabilities (19,657) (21,015) Net deferred tax assets (liabilities) $ 4,727 $ 1,240 |
Schedule of Unrecognized Tax Benefits Roll Forward | The following is a rollforward of the total gross unrecognized tax benefits for the fiscal years ended January 31, 2022, January 31, 2021, and January 31, 2020 (in thousands): Balance as of February 1, 2019 $ 8,128 Decreases in current period tax positions (2,659) Balance as of January 31, 2020 5,469 Increases in prior period tax positions 6,926 Increase in current period tax positions 12,052 Balance as of January 31, 2021 24,447 Increases in prior period tax positions 186 Decreases in prior period tax positions (9,772) Increase in current period tax positions 11,463 Balance as of January 31, 2022 $ 26,324 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Leases [Abstract] | |
Schedule of Component of Lease Costs | The component of lease costs was as follows (in thousands): Year Ended January 31, 2022 2021 Lease cost Operating lease cost $ 11,262 $ 10,308 Short-term lease cost 1,918 1,957 Variable lease cost 4,874 3,007 Total lease cost $ 18,054 $ 15,272 |
Schedule of Future Minimum Payments, Leases | The maturities of the Company’s non-cancelable operating lease liabilities are as follows (in thousands): January 31, 2022 Fiscal 2023 $ 10,539 Fiscal 2024 11,861 Fiscal 2025 10,728 Fiscal 2026 4,791 Fiscal 2027 558 Total operating lease payments 38,477 Less: imputed interest (3,278) Present value of operating lease liabilities $ 35,199 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of each option was estimated on the date of grant using the following assumptions during the period: Year Ended January 31, 2022 2021 2020 Expected term (in years) 3.82 – 5.63 3.17 – 6.05 6.05 Risk-free interest rate 0.6% – 1.0% 0.2% – 0.4% 2.0% – 2.4% Expected stock price volatility 36.1% – 37.1% 35.8% – 37.3% 37.7% – 37.9% 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: Year Ended January 31, 2022 2021 2020 Expected term (in years) 0.5 – 2.0 0.5 – 2.0 0.5 – 2.0 Risk-free interest rate 0.0% – 1.9% 0.1% – 2.0% 1.6% – 2.2% Expected stock price volatility 33.0% – 55.9% 30.1% – 54.3% 30.1% – 35.7% Dividend yield — % —% — % |
Share-based Payment Arrangement, Option, Activity | The following table is a summary of stock option activity for the fiscal year ended January 31, 2022: Number of Weighted- (in thousands) Options outstanding at January 31, 2021 6,646 $ 8.24 Granted 93 $ 3.19 Exercised (2,598) $ 6.12 Canceled (203) $ 28.42 Options outstanding at January 31, 2022 3,938 $ 8.48 Options vested and expected to vest at January 31, 2022 3,938 $ 8.48 Options exercisable at January 31, 2022 2,767 $ 6.99 |
Share-based Payment Arrangement, Restricted Stock Unit, Activity | The following table is a summary of RSUs, PSUs and the Special PSU Awards activities for the fiscal year ended January 31, 2022: Number of Weighted-Average (in thousands) RSUs and PSUs outstanding at January 31, 2021 8,449 $ 59.27 Granted 3,387 $ 224.19 Released (3,408) $ 62.62 Performance adjustment (1) 153 $ 58.15 Forfeited (695) $ 99.78 RSUs and PSUs outstanding at January 31, 2022 7,886 $ 125.04 RSUs and PSUs expected to vest at January 31, 2022 7,886 $ 125.04 ___________________________ |
Share-based Payment Arrangement, Expensed and Capitalized, Amount | Stock-based compensation expense included in the consolidated statements of operations is as follows (in thousands): Year Ended January 31, 2022 2021 2020 Subscription cost of revenue $ 22,044 $ 11,705 $ 5,226 Professional services cost of revenue 10,050 6,005 2,486 Sales and marketing 89,634 50,557 23,919 Research and development 102,027 40,274 15,403 General and administrative 86,197 41,134 32,906 Total stock-based compensation expense $ 309,952 $ 149,675 $ 79,940 |
Revenue, Deferred Revenue and_2
Revenue, Deferred Revenue and Remaining Performance Obligations (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Revenue Recognition and Deferred Revenue [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): Year Ended January 31, 2022 2021 2020 Amount % Revenue Amount % Revenue Amount % Revenue Channel Partners $ 1,093,336 75 % $ 655,031 75 % $ 331,279 69 % Direct Customers 358,258 25 % 219,407 25 % 150,134 31 % Total revenue $ 1,451,594 100 % $ 874,438 100 % $ 481,413 100 % |
Disaggregation of Revenue | 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): Year Ended January 31, 2022 2021 2020 Amount % Revenue Amount % Revenue Amount % Revenue United States $ 1,046,474 72 % $ 627,402 72 % $ 356,513 74 % Europe, Middle East, and Africa 200,198 14 % 123,900 14 % 67,428 14 % Asia Pacific 142,686 10 % 80,185 9 % 37,672 8 % Other 62,236 4 % 42,951 5 % 19,800 4 % Total revenue $ 1,451,594 100 % $ 874,438 100 % $ 481,413 100 % |
Contract with Customer, Asset and Liability | Changes in deferred revenue were as follows (in thousands): Year Ended January 31, 2022 2021 Beginning Balance $ 911,895 $ 571,168 Additions to deferred revenue 2,069,020 1,215,165 Recognition of deferred revenue (1,451,594) (874,438) Ending Balance $ 1,529,321 $ 911,895 |
Capitalized Contract Cost | The following table summarizes the activity of deferred contract acquisition costs (in thousands): Year Ended January 31, 2022 2021 Beginning balance $ 198,756 $ 114,206 Capitalization of contract acquisition costs 234,308 150,975 Amortization of deferred contract acquisition costs (113,884) (66,425) Ending balance $ 319,180 $ 198,756 Deferred contract acquisition costs, current $ 126,822 $ 80,850 Deferred contract acquisition costs, noncurrent 192,358 117,906 Total deferred contract acquisition costs $ 319,180 $ 198,756 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Recorded Unconditional Purchase Obligations | A summary of noncancellable purchase obligations in excess of one year as of January 31, 2022 with expected date of payment is as follows (in thousands): Total Fiscal 2023 $ 67,540 Fiscal 2024 72,438 Fiscal 2025 27,039 Fiscal 2026 7,094 Fiscal 2027 2,944 Thereafter 564 Total purchase commitments $ 177,619 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Segment Reporting [Abstract] | |
Long-lived Assets by Geographic Areas | The Company’s long-lived assets are composed of property and equipment, net, and operating lease right-of-use assets, are summarized by geographic area as follows (in thousands): January 31, 2022 2021 United States $ 256,282 $ 174,889 International 36,030 28,609 Total property and equipment, net and operating lease right-of-use assets $ 292,312 $ 203,498 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (dollars in thousands): Fair Value Useful Life (in months) Developed technology $ 15,300 72 Customer relationships 3,000 72 Total intangible assets acquired $ 18,300 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 (dollars 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 (dollars 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) | 12 Months Ended |
Jan. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | 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): Year Ended January 31, 2022 2021 2020 Numerator: Net loss attributable to Class A and Class B CrowdStrike common stockholders $ (234,802) $ (92,629) $ (141,779) 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 227,142 217,756 148,062 Net loss per share attributable to Class A and Class B CrowdStrike common stockholders, basic and diluted $ (1.03) $ (0.43) $ (0.96) |
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): Year Ended January 31, 2022 2021 2020 Shares of common stock subject to repurchase from outstanding stock options 198 548 984 RSUs and PSUs subject to future vesting 7,886 8,449 6,063 Shares of common stock issuable from stock options 3,938 6,646 14,689 Share purchase rights under the employee stock purchase plan 642 872 1,458 Potential common shares excluded from diluted net loss per share 12,664 16,515 23,194 |
Description of Business and B_2
Description of Business and Basis of Presentation (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 | Feb. 01, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Operating lease right-of-use assets | $ 31,735 | $ 36,484 | $ 37,400 |
Operating lease liabilities | $ 35,199 | $ 37,400 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Channel partner A | Customer Concentration Risk | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 9.00% | 10.00% | |
Customer A | Customer Concentration Risk | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | 17.00% | |
Channel partner B | Distributor Concentration Risk | Revenue Benchmark | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 7.00% | 8.00% | 10.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Narrative (Details) | Jun. 14, 2019shares | Jul. 31, 2019USD ($) | Sep. 30, 2018 | Jan. 31, 2022USD ($) | Jan. 31, 2022USD ($) | Jan. 31, 2022USD ($) | Jan. 31, 2022USD ($)reportingUnit | Jan. 31, 2022USD ($)segment | Jan. 31, 2022USD ($)item | Jan. 31, 2021USD ($) | Jan. 31, 2020USD ($) | Dec. 31, 2021USD ($) |
Concentration Risk [Line Items] | ||||||||||||
Cash equivalents | $ 950,600,000 | $ 950,600,000 | $ 950,600,000 | $ 950,600,000 | $ 950,600,000 | $ 950,600,000 | $ 0 | |||||
Unrealized gain on strategic investments | 2,400,000 | |||||||||||
Unrealized gain on strategic investments, noncontrolling interests | 2,400,000 | |||||||||||
Allowance for doubtful accounts | $ 1,600,000 | 1,600,000 | 1,600,000 | $ 1,600,000 | 1,600,000 | 1,600,000 | 1,200,000 | |||||
Impairment losses | 0 | 0 | $ 0 | |||||||||
Commission amortization period | 4 years | |||||||||||
Professional service contract amortization period | 6 months | |||||||||||
Advertising expense | 50,500,000 | 27,900,000 | 8,000,000 | |||||||||
Vesting period | 4 years | |||||||||||
Number of reporting units | reportingUnit | 1 | |||||||||||
Goodwill impairment loss | 0 | 0 | 0 | |||||||||
Deferred financing costs, net | $ 4,600,000 | 4,600,000 | 4,600,000 | $ 4,600,000 | $ 4,600,000 | $ 4,600,000 | 4,400,000 | |||||
Amortization of debt issuance costs | 1,000,000 | $ 800,000 | $ 400,000 | |||||||||
Number of reportable segments | 1 | 1 | ||||||||||
Number of operating segments | segment | 1 | |||||||||||
Senior Notes | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Unamortized issuance costs | 2,300,000 | 2,300,000 | 2,300,000 | 2,300,000 | $ 2,300,000 | $ 2,300,000 | ||||||
Reclassification to Stockholder's Equity | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Deferred offering costs | $ 5,900,000 | $ 5,900,000 | $ 5,900,000 | $ 5,900,000 | $ 5,900,000 | $ 5,900,000 | ||||||
RSUs | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Vesting period | 4 years | |||||||||||
PSUs | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Vesting period | 4 years | |||||||||||
Employee Stock Purchase Plan | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Vesting period | 2 years | |||||||||||
Tranche One | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Requisite service period | 6 months | |||||||||||
Tranche One | RSUs | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Vesting percentage | 10.00% | 25.00% | ||||||||||
Tranche Two | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Requisite service period | 12 months | |||||||||||
Tranche Two | RSUs | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Vesting percentage | 15.00% | |||||||||||
Tranche Three | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Requisite service period | 18 months | |||||||||||
Tranche Three | RSUs | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Vesting percentage | 25.00% | |||||||||||
Tranche Four | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Requisite service period | 24 months | |||||||||||
Tranche Four | RSUs | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Vesting percentage | 50.00% | |||||||||||
Capitalized internal-use software and website development | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Useful life | 3 years | |||||||||||
Crowdstrike Falcon Fund Llc | Accel | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Sharing percentage | 50.00% | |||||||||||
Common Class B | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Shares issued upon conversion of warrants (in shares) | shares | 336,386 | |||||||||||
Shares issued (in shares) | shares | 322,278 | |||||||||||
Common Class B | IPO | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Warrants issued (in shares) | shares | 336,386 | |||||||||||
Warrants conversion ratio | 1 | |||||||||||
Minimum | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Useful life | 1 year | |||||||||||
Subscription fees payable term | 30 days | |||||||||||
Subscription term | 1 year | |||||||||||
Maximum | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Useful life | 20 years | |||||||||||
Subscription fees payable term | 60 days | |||||||||||
Subscription term | 3 years | |||||||||||
Maximum | Crowdstrike Falcon Fund Llc | Accel | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Amount agreed to commit | $ 10,000,000 | $ 50,000,000 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Property and Equipment, Net (Details) | 12 Months Ended |
Jan. 31, 2022 | |
Furniture and equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Capitalized internal-use software and website development | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Minimum | Data center and other computer equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Minimum | Purchased software | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Maximum | Data center and other computer equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Maximum | Purchased software | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Investments and Fair Value Me_3
Investments and Fair Value Measurements - Financial Assets and Liabilities (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 300,027 | $ 0 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 300,027 | 0 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 300,027 | 0 |
Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 300,027 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Level 3 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 0 | $ 0 |
Investments and Fair Value Me_4
Investments and Fair Value Measurements - Strategic Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Total initial cost | $ 18,809 | $ 2,500 |
Carrying value | 23,632 | 2,500 |
Equity Method Investments | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Unrealized gains due to changes in fair value | $ 4,823 | $ 0 |
Investments and Fair Value Me_5
Investments and Fair Value Measurements - Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Adjustment resulting from change in fair value recognized in the consolidated statement of operations | $ 6,000 | ||
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital upon initial public offering | 10,559 | ||
Redeemable Convertible Preferred Stock Warrants | Level 3 | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, beginning balance | $ 0 | $ 0 | 4,537 |
Adjustment resulting from change in fair value recognized in the consolidated statement of operations | 0 | 0 | 6,022 |
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital upon initial public offering | 0 | 0 | (10,559) |
Fair value, measurement with unobservable inputs reconciliation, recurring basis,, ending balance | $ 0 | $ 0 | $ 0 |
Investments and Fair Value Me_6
Investments and Fair Value Measurements - Narrative (Details) $ in Millions | 12 Months Ended |
Jan. 31, 2020USD ($) | |
Fair Value Disclosures [Abstract] | |
Adjustment resulting from change in fair value recognized in the consolidated statement of operations | $ 6 |
Balance Sheet Components - Prep
Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid software licenses | $ 26,085 | $ 20,596 |
Prepaid expenses | 18,829 | 12,220 |
Prepaid marketing | 17,629 | 10,852 |
Other current assets | 12,783 | 4,566 |
Prepaid hosting services | 4,026 | 5,383 |
Prepaid expenses and other current assets | $ 79,352 | $ 53,617 |
Balance Sheet Components - Prop
Balance Sheet Components - Property and Equipment (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 402,355 | $ 255,548 |
Less: Accumulated depreciation and amortization | (141,778) | (88,534) |
Property and equipment, net | 260,577 | 167,014 |
Data center and other computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 198,297 | 146,220 |
Capitalized internal-use software and website development | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 70,476 | 44,358 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 22,029 | 19,733 |
Purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 5,232 | 3,211 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 7,291 | 6,498 |
Construction in process | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 99,030 | $ 35,528 |
Balance Sheet Components - Narr
Balance Sheet Components - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 54,400,000 | $ 38,700,000 | $ 23,000,000 |
Capitalized computer software impairments | 0 | 0 | 0 |
Capitalized computer software additions | 30,700,000 | 14,000,000 | 8,100,000 |
Capitalized computer software amortization | 12,400,000 | 7,900,000 | 6,200,000 |
Capitalized computer software net | 38,600,000 | 19,500,000 | |
Amortization | 12,900,000 | 1,400,000 | $ 500,000 |
Other Current Liabilities | |||
Property, Plant and Equipment [Line Items] | |||
Deferred payroll taxes owed | $ 5,100,000 | ||
Developed technology | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 2 years | ||
Customer relationships | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 20 years | ||
Data center and other computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Equipment additions | $ 89,800,000 | $ 30,000,000 |
Balance Sheet Components - Inta
Balance Sheet Components - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 112,110 | $ 18,681 |
Accumulated Amortization | 14,774 | 3,004 |
Net Amount | 97,336 | 15,677 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 97,668 | 14,513 |
Accumulated Amortization | 12,000 | 2,193 |
Net Amount | $ 85,668 | $ 12,320 |
Weighted-Average Remaining Useful Life | 79 months | 56 months |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 12,045 | $ 3,769 |
Accumulated Amortization | 1,973 | 649 |
Net Amount | $ 10,072 | $ 3,120 |
Weighted-Average Remaining Useful Life | 72 months | 54 months |
Other acquired intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 2,397 | $ 399 |
Accumulated Amortization | 801 | 162 |
Net Amount | $ 1,596 | $ 237 |
Weighted-Average Remaining Useful Life | 89 months | 185 months |
Balance Sheet Components - Esti
Balance Sheet Components - Estimated Aggregate Future Expense (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Fiscal 2023 | $ 16,300 | |
Fiscal 2024 | 15,608 | |
Fiscal 2025 | 15,524 | |
Fiscal 2026 | 14,437 | |
Fiscal 2027 | 12,261 | |
Thereafter | 23,206 | |
Net Amount | $ 97,336 | $ 15,677 |
Balance Sheet Components - Good
Balance Sheet Components - Goodwill (Details) $ in Thousands | 12 Months Ended |
Jan. 31, 2022USD ($) | |
Goodwill [Roll Forward] | |
Goodwill as of January 31, 2021 | $ 83,566 |
Goodwill acquired | 334,294 |
Foreign currency translation | (1,415) |
Goodwill | $ 416,445 |
Balance Sheet Components - Othe
Balance Sheet Components - Other Noncurrent Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Other assets | $ 13,348 | $ 8,627 |
Deferred income tax asset | 4,802 | 1,328 |
Deferred finance cost | 4,620 | 4,355 |
Deposits | 2,576 | 2,802 |
Other assets, noncurrent | $ 25,346 | $ 17,112 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Expenses (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Web hosting services | $ 23,711 | $ 14,187 |
Other accrued expenses | 14,451 | 11,372 |
Accrued legal and accounting | 14,166 | 5,709 |
Accrued purchases of property and equipment | 10,878 | 4,570 |
Accrued interest expense | 10,375 | 687 |
Accrued marketing | 9,801 | 14,592 |
Accrued expenses | $ 83,382 | $ 51,117 |
Balance Sheet Components - Ac_2
Balance Sheet Components - Accrued Payroll and Benefits (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Accrued commissions | $ 47,298 | $ 32,300 |
Accrued payroll and related expenses | 24,910 | 16,528 |
Accrued bonuses | 17,591 | 12,110 |
Employee Stock Purchase Plan | 14,764 | 10,969 |
Accrued payroll and benefits | $ 104,563 | $ 71,907 |
Balance Sheet Components - Ot_2
Balance Sheet Components - Other Current Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Other current liabilities | $ 12,820 | $ 9,652 |
Income tax payable | 5,781 | 2,639 |
Accrued taxes | 4,914 | 2,837 |
Customer deposits | 1,414 | 2,371 |
Other current liabilities | $ 24,929 | $ 17,499 |
Debt - Narrative (Details)
Debt - Narrative (Details) | Jan. 20, 2021USD ($) | Jan. 04, 2021USD ($) | Jan. 31, 2022USD ($) | Jan. 31, 2021USD ($) | Jan. 31, 2020USD ($) | Apr. 30, 2019USD ($) |
Line of Credit Facility [Line Items] | ||||||
Proceeds from issuance of Senior Notes, net of debt financing costs | $ 0 | $ 739,569,000 | $ 0 | |||
Interest expense | 25,231,000 | 1,559,000 | 442,000 | |||
Amortization of debt issuance costs | $ 1,000,000 | 800,000 | $ 400,000 | |||
A&R Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Minimum consolidated interest coverage ratio | 3 | |||||
Maximum senior secured leverage ratio | 3 | |||||
Maximum total leverage ratio | 5.50 | |||||
Maximum total leverage ratio, stepped down | 3.50 | |||||
3.00% Senior Notes | Senior Notes | ||||||
Line of Credit Facility [Line Items] | ||||||
Aggregate principal amount | $ 750,000,000 | |||||
Stated interest rate | 3.00% | |||||
Percentage of original principal amount | 40.00% | |||||
Proceeds from issuance of Senior Notes, net of debt financing costs | $ 738,000,000 | |||||
Underwriting commissions | 9,400,000 | |||||
Payments of financing costs | $ 2,600,000 | |||||
Interest expense | $ 24,000,000 | |||||
Amortization of debt issuance costs | $ 800,000 | |||||
Debt instrument, fair value | 708,700,000 | |||||
3.00% Senior Notes | Senior Notes | Prior to February 15, 2024 | Plus "Make Whole" Premium | ||||||
Line of Credit Facility [Line Items] | ||||||
Redemption percentage | 100.00% | |||||
3.00% Senior Notes | Senior Notes | Prior to February 15, 2024 | Proceeds From Equity Offering, Provided Principal Amount of Redemptions Does Not Exceed 40% | ||||||
Line of Credit Facility [Line Items] | ||||||
Redemption percentage | 103.00% | |||||
3.00% Senior Notes | Senior Notes | After February 15, 2024 | ||||||
Line of Credit Facility [Line Items] | ||||||
Redemption percentage | 101.50% | |||||
3.00% Senior Notes | Senior Notes | After February 15, 2025 | ||||||
Line of Credit Facility [Line Items] | ||||||
Redemption percentage | 100.75% | |||||
3.00% Senior Notes | Senior Notes | After February 15, 2026 | ||||||
Line of Credit Facility [Line Items] | ||||||
Redemption percentage | 100.00% | |||||
3.00% Senior Notes | Senior Notes | Change of control event | ||||||
Line of Credit Facility [Line Items] | ||||||
Redemption percentage | 101.00% | |||||
Minimum | A&R Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Commitment fee percentage | 0.15% | |||||
Maximum | A&R Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Commitment fee percentage | 0.25% | |||||
Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Revolving line of credit | $ 150,000,000 | |||||
Line of credit amount outstanding | $ 0 | |||||
Revolving Credit Facility | A&R Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Revolving line of credit | $ 750,000,000 | |||||
Incremental borrowing capacity | 250,000,000 | |||||
Letter of Credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Revolving line of credit | 10,000,000 | |||||
Letter of Credit | A&R Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Revolving line of credit | 100,000,000 | |||||
Swingline Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Revolving line of credit | $ 10,000,000 | |||||
Swingline Facility | A&R Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Revolving line of credit | $ 50,000,000 | |||||
Alternate Base Rate Loans | Fed Funds Effective Rate Overnight Index Swap Rate | A&R Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest rate | 0.50% | |||||
Alternate Base Rate Loans | Eurodollar | A&R Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest rate | 1.00% | |||||
Alternate Base Rate Loans | Eurodollar | Minimum | A&R Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest rate | (25.00%) | |||||
Alternate Base Rate Loans | Eurodollar | Maximum | A&R Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest rate | 0.25% |
Income Taxes - Geographical Bre
Income Taxes - Geographical Breakdown (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (179,334) | $ (94,713) | $ (149,807) |
International | 19,311 | 6,844 | 10,025 |
Loss before provision for income taxes | $ (160,023) | $ (87,869) | $ (139,782) |
Income Taxes - Components of th
Income Taxes - Components of the Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 611 | 401 | 104 |
Foreign | 85,700 | 5,811 | 2,574 |
Total current | 86,311 | 6,212 | 2,678 |
Federal | (363) | (136) | (362) |
State | (63) | (317) | (57) |
Foreign | (13,530) | (999) | (262) |
Total deferred | (13,956) | (1,452) | (681) |
Provision for income taxes | $ 72,355 | $ 4,760 | $ 1,997 |
Income Taxes - Income Tax Recon
Income Taxes - Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Provision for income taxes at statutory rate | $ (33,605) | $ (18,453) | $ (29,354) |
State income taxes, net of federal benefits | 673 | 0 | 25 |
Foreign tax rate differential | 574 | 1,994 | 207 |
Research and other credits | (19,113) | (9,373) | (1,534) |
Stock-based compensation | (145,964) | (140,489) | (43,477) |
Non-deductible expenses | 2,783 | 2,212 | 1,773 |
Change in unrecognized tax benefits | 0 | 0 | (2,659) |
Change in valuation allowance | 210,680 | 168,869 | 77,016 |
Tax impact of restructuring | 57,236 | 0 | 0 |
Other | (909) | 0 | 0 |
Provision for income taxes | $ 72,355 | $ 4,760 | $ 1,997 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | ||||
Provision for income taxes | $ 72,355 | $ 4,760 | $ 1,997 | |
Valuation allowance increase (decrease), amount | 357,000 | 206,200 | 87,200 | |
Deferred tax assets, valuation allowance | 770,861 | 413,828 | 207,600 | |
Research and other credit carryforwards | 56,539 | 22,778 | ||
Unrecognized tax benefits | 26,324 | $ 24,447 | $ 5,469 | $ 8,128 |
Unrecognized tax benefits that would impact effective tax rate | 1,900 | |||
Foreign Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Provision for income taxes | 57,200 | |||
Foreign Tax Authority | United Kingdom | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 81,100 | |||
Domestic Tax Authority | Federal | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 1,600,000 | |||
Research and other credit carryforwards | 65,600 | |||
State and Local Jurisdiction | California | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 168,900 | |||
Research and other credit carryforwards | 13,700 | |||
State and Local Jurisdiction | Other States | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | $ 868,000 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 |
Deferred tax assets | |||
Net operating loss carryforwards | $ 428,238 | $ 289,889 | |
Research and other credit carryforwards | 56,539 | 22,778 | |
Intangible assets | 61,008 | 0 | |
Stock-based compensation | 33,202 | 20,154 | |
Deferred revenue | 34,425 | 21,595 | |
Accrued expenses | 12,550 | 7,791 | |
Operating lease liabilities | 10,144 | 10,718 | |
Capitalized research and development | 154,625 | 63,158 | |
Other, net | 4,514 | 0 | |
Gross deferred assets | 795,245 | 436,083 | |
Less: Valuation allowance | (770,861) | (413,828) | $ (207,600) |
Total deferred tax assets | 24,384 | 22,255 | |
Deferred tax liabilities | |||
Property and equipment, net | (8,769) | (4,446) | |
Capitalized Commissions | (1,632) | (2,960) | |
Intangible assets | 0 | (3,697) | |
Operating right-of-use assets | (9,256) | (9,610) | |
Other, net | 0 | (302) | |
Total deferred tax liabilities | (19,657) | (21,015) | |
Net deferred tax assets (liabilities) | $ 4,727 | $ 1,240 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning balance | $ 24,447 | $ 5,469 | $ 8,128 |
Decreases in current period tax positions | (2,659) | ||
Increases in prior period tax positions | 186 | 6,926 | |
Increase in current period tax positions | 11,463 | 12,052 | |
Decreases in prior period tax positions | (9,772) | ||
Unrecognized tax benefits, ending balance | $ 26,324 | $ 24,447 | $ 5,469 |
Equity Transactions (Details)
Equity Transactions (Details) $ / shares in Units, $ in Millions | Jun. 14, 2019vote$ / sharesshares | Dec. 31, 2019USD ($) | Jan. 31, 2022$ / sharesshares | Jan. 31, 2021$ / sharesshares |
Class of Stock [Line Items] | ||||
Preferred stock, shares authorized (in shares) | shares | 100,000,000 | 100,000,000 | ||
Preferred stock par value (in usd per share) | $ / shares | $ 0.0005 | $ 0.0005 | ||
Payments for legal settlements | $ | $ 2.3 | |||
IPO | ||||
Class of Stock [Line Items] | ||||
Preferred stock, shares authorized (in shares) | shares | 100,000,000 | |||
Preferred stock par value (in usd per share) | $ / shares | $ 0.0005 | |||
Common Class A | ||||
Class of Stock [Line Items] | ||||
Common stock shares authorized (in shares) | shares | 2,000,000,000 | 2,000,000,000 | ||
Common stock par value (in usd per share) | $ / shares | $ 0.0005 | $ 0.0005 | ||
Common Class A | IPO | ||||
Class of Stock [Line Items] | ||||
Common stock shares authorized (in shares) | shares | 2,000,000,000 | |||
Common stock par value (in usd per share) | $ / shares | $ 0.0005 | |||
Number of votes per share | vote | 1 | |||
Common stock conversion ratio | 1 | |||
Common Class B | ||||
Class of Stock [Line Items] | ||||
Common stock shares authorized (in shares) | shares | 300,000,000 | 300,000,000 | ||
Common stock par value (in usd per share) | $ / shares | $ 0.0005 | $ 0.0005 | ||
Common Class B | IPO | ||||
Class of Stock [Line Items] | ||||
Common stock shares authorized (in shares) | shares | 300,000,000 | |||
Common stock par value (in usd per share) | $ / shares | $ 0.0005 | |||
Number of votes per share | vote | 10 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Leases [Abstract] | |||
Cash payments | $ 11,800,000 | $ 11,000,000 | |
Operating lease liabilities arising from obtaining operating right of-use assets | $ 4,867,000 | $ 6,249,000 | $ 0 |
Weighted average remaining lease term | 3 years | 4 years 1 month 6 days | |
Weighted average discount rate | 5.40% | 5.90% | |
Rent expense | $ 10,300,000 | ||
Sublease income | $ 0 | $ 0 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Leases [Abstract] | ||
Operating lease cost | $ 11,262 | $ 10,308 |
Short-term lease cost | 1,918 | 1,957 |
Variable lease cost | 4,874 | 3,007 |
Total lease cost | $ 18,054 | $ 15,272 |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Feb. 01, 2020 |
Leases [Abstract] | ||
Fiscal 2023 | $ 10,539 | |
Fiscal 2024 | 11,861 | |
Fiscal 2025 | 10,728 | |
Fiscal 2026 | 4,791 | |
Fiscal 2027 | 558 | |
Total operating lease payments | 38,477 | |
Less: imputed interest | (3,278) | |
Present value of operating lease liabilities | $ 35,199 | $ 37,400 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
May 31, 2019purchasePeriodshares | Sep. 30, 2018installmenttranche | Jan. 31, 2022USD ($)installmentchangeInContribution$ / sharesshares | Jan. 31, 2021USD ($)$ / sharesshares | Jan. 31, 2020USD ($)$ / shares | May 31, 2021shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum number of additional shares of common stock that may be issued (in shares) | shares | 5,000,000 | |||||
Accrued payroll and benefits | $ 104,563 | $ 71,907 | ||||
Shares of common stock issuable from stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options exercisable (in shares) | shares | 362,406 | |||||
Options, aggregate intrinsic value | $ 480,500 | $ 711,400 | $ 469,600 | |||
Options exercisable, weighted average contractual term | 5 years 8 months 12 days | 6 years 4 months 24 days | 6 years 8 months 12 days | |||
Weighted average grant date fair value (in usd per share) | $ / shares | $ 180.08 | $ 66.31 | $ 9.51 | |||
Options exercised, intrinsic value | $ 570,900 | $ 847,500 | $ 407,900 | |||
Options outstanding, intrinsic value | $ 678,000 | $ 1,400,000 | $ 816,300 | |||
Options outstanding, weighted average remaining contractual term | 6 years 1 month 6 days | 7 years | 7 years 4 months 24 days | |||
Total unrecognized stock-based compensation expense, unvested options | $ 16,600 | $ 24,300 | ||||
Expected amortization period, weighted average vesting period | 1 year 4 months 24 days | 1 year 8 months 12 days | ||||
Common stock shares issued, early exercised stock options | shares | 0 | 0 | ||||
Number of shares of common stock related to early exercised stock options subject to repurchase (in shares) | shares | 197,994 | 548,028 | ||||
Value of common stock related to early exercised stock options subject to repurchase | $ 2,200 | $ 5,400 | ||||
Shares of common stock issuable from stock options | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Risk-free interest rate | 0.60% | 0.20% | 2.00% | |||
Expected stock price volatility | 36.10% | 35.80% | 37.70% | |||
Shares of common stock issuable from stock options | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Risk-free interest rate | 1.00% | 0.40% | 2.40% | |||
Expected stock price volatility | 37.10% | 37.30% | 37.90% | |||
RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of vesting schedules | tranche | 4 | |||||
RSUs | Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of quarterly installments | installment | 12 | |||||
Vesting percentage | 10.00% | 25.00% | ||||
RSUs | Tranche Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of quarterly installments | installment | 16 | |||||
Vesting percentage | 15.00% | |||||
RSUs | Tranche Three | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of quarterly installments | installment | 8 | |||||
Vesting percentage | 25.00% | |||||
RSUs | Tranche Four | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 50.00% | |||||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expected amortization period, weighted average vesting period | 2 years 3 months 18 days | 2 years 7 months 6 days | ||||
Unrecognized stock based compensation expense, unvested RSUs | $ 702,300 | $ 393,900 | ||||
PSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expected amortization period, weighted average vesting period | 1 year 2 months 12 days | 1 year 3 months 18 days | ||||
Unrecognized stock based compensation expense, unvested RSUs | $ 42,900 | $ 24,800 | ||||
Special Performance-based Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expected amortization period, weighted average vesting period | 2 years 9 months 18 days | |||||
Number of quarterly installments | installment | 4 | |||||
Unrecognized stock based compensation expense, unvested RSUs | $ 118,400 | |||||
Historical volatility rate, weight | 50.00% | |||||
Historical volatility rate, weight | 50.00% | |||||
Special Performance-based Stock Units | Executive Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | shares | 655,000 | |||||
Special Performance-based Stock Units | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Risk-free interest rate | 0.85% | |||||
Expected stock price volatility | 54.89% | |||||
Look back period | 2 years 2 months 15 days | |||||
Special Performance-based Stock Units | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Risk-free interest rate | 1.51% | |||||
Expected stock price volatility | 55.36% | |||||
Look back period | 2 years 6 months 29 days | |||||
Special Performance-based Stock Units | Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 50.00% | |||||
Special Performance-based Stock Units | Tranche Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 12.50% | |||||
Special Performance-based Stock Units | Tranche Three | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 12.50% | |||||
Special Performance-based Stock Units | Tranche Four | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 12.50% | |||||
Special Performance-based Stock Units | Tranche Five | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 12.50% | |||||
Share purchase rights under the employee stock purchase plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Threshold percentage, outstanding shares | 100.00% | |||||
Number of increases in contribution | changeInContribution | 1 | |||||
Equity Incentive Plan 2019 | Common Class A | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares authorized (in shares) | shares | 8,750,000 | |||||
Threshold percentage, outstanding shares | 2.00% | |||||
Employee Stock Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Threshold percentage, outstanding shares | 1.00% | |||||
ESPP, consecutive offering period | 24 months | |||||
ESPP, number of purchase periods | purchasePeriod | 4 | |||||
ESPP, purchase period duration | 6 months | |||||
ESPP, percentage of eligible compensation | 15.00% | |||||
Maximum number of shares purchasable (in shares) | shares | 2,500 | |||||
Purchase price of common stock, percentage | 85.00% | |||||
Plan modification, incremental cost | $ 6,200 | 3,500 | ||||
Accrued payroll and benefits | $ 14,800 | $ 11,000 | ||||
Employee Stock Purchase Plan | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Risk-free interest rate | 0.00% | 0.10% | 1.60% | |||
Expected stock price volatility | 33.00% | 30.10% | 30.10% | |||
Employee Stock Purchase Plan | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Risk-free interest rate | 1.90% | 2.00% | 2.20% | |||
Expected stock price volatility | 55.90% | 54.30% | 35.70% | |||
Employee Stock Purchase Plan | Common Class A | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares authorized (in shares) | shares | 3,500,000 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value of Options (Details) | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Employee Stock Purchase Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 months | 6 months | 6 months |
Risk-free interest rate | 0.00% | 0.10% | 1.60% |
Expected stock price volatility | 33.00% | 30.10% | 30.10% |
Employee Stock Purchase Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 2 years | 2 years | 2 years |
Risk-free interest rate | 1.90% | 2.00% | 2.20% |
Expected stock price volatility | 55.90% | 54.30% | 35.70% |
Shares of common stock issuable from stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 years 18 days | ||
Dividend yield | 0.00% | 0.00% | 0.00% |
Shares of common stock issuable from stock options | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 3 years 9 months 25 days | 3 years 2 months 1 day | |
Risk-free interest rate | 0.60% | 0.20% | 2.00% |
Expected stock price volatility | 36.10% | 35.80% | 37.70% |
Shares of common stock issuable from stock options | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 5 years 7 months 17 days | 6 years 18 days | |
Risk-free interest rate | 1.00% | 0.40% | 2.40% |
Expected stock price volatility | 37.10% | 37.30% | 37.90% |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - Options shares in Thousands | 12 Months Ended |
Jan. 31, 2022$ / sharesshares | |
Number of Shares | |
Options outstanding, beginning balance (in shares) | shares | 6,646 |
Options granted (in shares) | shares | 93 |
Options exercised (in shares) | shares | (2,598) |
Options canceled (in shares) | shares | (203) |
Options outstanding, ending balance (in shares) | shares | 3,938 |
Options, vested and expected to vest (in shares) | shares | 3,938 |
Options exercisable (in shares) | shares | 2,767 |
Weighted- Average Exercise Price Per Share | |
Options outstanding, beginning balance, weighted average exercise price (in usd per share) | $ / shares | $ 8.24 |
Options granted, weighted average exercise price (in usd per share) | $ / shares | 3.19 |
Options exercised, weighted average exercise price (in usd per share) | $ / shares | 6.12 |
Options canceled, weighted average exercise price per share (in usd per share) | $ / shares | 28.42 |
Options outstanding, ending balance, weighted average exercise price (in usd per share) | $ / shares | 8.48 |
Options vested and expected to vest, weighted average exercise price (in usd per share) | $ / shares | 8.48 |
Options exercisable, weighted average exercise price (in usd per share) | $ / shares | $ 6.99 |
Stock-Based Compensation - RSU
Stock-Based Compensation - RSU Activity (Details) - RSU, PSU and Special PSU shares in Thousands | 12 Months Ended |
Jan. 31, 2022$ / sharesshares | |
Number of Shares | |
Shares outstanding at beginning of period (in shares) | shares | 8,449 |
Granted (in shares) | shares | 3,387 |
Released (in shares) | shares | (3,408) |
Performance adjustment (in shares) | shares | 153 |
Forfeited (in shares) | shares | (695) |
Shares outstanding at end of period (in shares) | shares | 7,886 |
Shares exercisable at end of period (in shares) | shares | 7,886 |
Weighted- Average Exercise Price Per Share | |
Shares outstanding at beginning of period (in usd per share) | $ / shares | $ 59.27 |
Granted (in usd per share) | $ / shares | 224.19 |
Released (in usd per share) | $ / shares | 62.62 |
Performance adjustment (in usd per share) | $ / shares | 58.15 |
Forfeited (in usd per share) | $ / shares | 99.78 |
Shares outstanding at end of period (in usd per share) | $ / shares | 125.04 |
Shares exercisable at end of period (in usd per share) | $ / shares | $ 125.04 |
Stock-Based Compensation - Expe
Stock-Based Compensation - Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expense | $ 309,952 | $ 149,675 | $ 79,940 |
Sales and marketing | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expense | 89,634 | 50,557 | 23,919 |
Research and development | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expense | 102,027 | 40,274 | 15,403 |
General and administrative | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expense | 86,197 | 41,134 | 32,906 |
Subscription cost of revenue | Cost of revenue | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expense | 22,044 | 11,705 | 5,226 |
Professional services cost of revenue | Cost of revenue | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expense | $ 10,050 | $ 6,005 | $ 2,486 |
Revenue, Deferred Revenue and_3
Revenue, Deferred Revenue and Remaining Performance Obligations - Revenue from Contracts by Type and Region (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Including Assessed Tax | $ 1,451,594 | $ 874,438 | $ 481,413 |
Percentage of Revenue | 100.00% | 100.00% | 100.00% |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Including Assessed Tax | $ 1,046,474 | $ 627,402 | $ 356,513 |
Percentage of Revenue | 72.00% | 72.00% | 74.00% |
Europe, Middle East, and Africa | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Including Assessed Tax | $ 200,198 | $ 123,900 | $ 67,428 |
Percentage of Revenue | 14.00% | 14.00% | 14.00% |
Asia Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Including Assessed Tax | $ 142,686 | $ 80,185 | $ 37,672 |
Percentage of Revenue | 10.00% | 9.00% | 8.00% |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Including Assessed Tax | $ 62,236 | $ 42,951 | $ 19,800 |
Percentage of Revenue | 4.00% | 5.00% | 4.00% |
Channel Partners | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Including Assessed Tax | $ 1,093,336 | $ 655,031 | $ 331,279 |
Percentage of Revenue | 75.00% | 75.00% | 69.00% |
Direct Customers | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Including Assessed Tax | $ 358,258 | $ 219,407 | $ 150,134 |
Percentage of Revenue | 25.00% | 25.00% | 31.00% |
Revenue, Deferred Revenue and_4
Revenue, Deferred Revenue and Remaining Performance Obligations - Narrative (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenue recognized, contract liabilities | $ 696,700,000 | $ 410,700,000 |
Commission amortization period | 4 years | |
Professional service contract amortization period | 6 months | |
Impairment loss | $ 0 | |
Minimum | ||
Disaggregation of Revenue [Line Items] | ||
Payment terms | 30 days | |
Subscription term | 1 year | |
Maximum | ||
Disaggregation of Revenue [Line Items] | ||
Payment terms | 60 days | |
Subscription term | 3 years |
Revenue, Deferred Revenue and_5
Revenue, Deferred Revenue and Remaining Performance Obligations - Performance Obligations (Details) $ in Billions | Jan. 31, 2022USD ($) |
Revenue Recognition and Deferred Revenue [Abstract] | |
Transaction price allocated to remaining performance obligation, amount | $ 2.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-02-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 65.00% |
Remaining performance obligation, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-02-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 34.00% |
Remaining performance obligation, period | 13 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-02-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, period | 36 months |
Revenue, Deferred Revenue and_6
Revenue, Deferred Revenue and Remaining Performance Obligations - Changes in Deferred Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Movement in Deferred Revenue [Roll Forward] | ||
Contract with customer, liability, beginning balance | $ 911,895 | $ 571,168 |
Additions to deferred revenue | 2,069,020 | 1,215,165 |
Recognition of deferred revenue | (1,451,594) | (874,438) |
Contract with customer, liability, beginning balance | $ 1,529,321 | $ 911,895 |
Revenue, Deferred Revenue and_7
Revenue, Deferred Revenue and Remaining Performance Obligations - Deferred Contract Acquisition Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Capitalized Contract Cost [Roll Forward] | ||
Beginning balance | $ 198,756 | $ 114,206 |
Capitalization of contract acquisition costs | 234,308 | 150,975 |
Amortization of deferred contract acquisition costs | (113,884) | (66,425) |
Ending balance | 319,180 | 198,756 |
Deferred contract acquisition costs, current | 126,822 | 80,850 |
Deferred contract acquisition costs, noncurrent | 192,358 | 117,906 |
Total deferred contract acquisition costs | $ 319,180 | $ 198,756 |
Commitment and Contingencies -
Commitment and Contingencies - Narrative (Details) - USD ($) | 1 Months Ended | ||
Oct. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | |
Line of Credit Facility [Line Items] | |||
Commitment to spend | $ 48,100,000 | ||
Amazon Web Services | |||
Line of Credit Facility [Line Items] | |||
Minimum commitment | $ 600,000,000 | ||
Remaining contractual commitment | 53,200,000 | ||
Indemnification Agreement | |||
Line of Credit Facility [Line Items] | |||
Loss contingency recorded | 0 | $ 0 | |
CALIFORNIA | Standby Letters of Credit | |||
Line of Credit Facility [Line Items] | |||
Unused standby letter of credit | 400,000 | 400,000 | |
TEXAS | Standby Letters of Credit | |||
Line of Credit Facility [Line Items] | |||
Unused standby letter of credit | $ 800,000 | $ 1,000,000 |
Commitment and Contingencies _2
Commitment and Contingencies - Purchase Obligations (Details) $ in Thousands | Jan. 31, 2022USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2023 | $ 67,540 |
2024 | 72,438 |
2025 | 27,039 |
2026 | 7,094 |
2027 | 2,944 |
Thereafter | 564 |
Total purchase commitments | $ 177,619 |
Geographic Information (Details
Geographic Information (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net and operating lease right-of-use assets | $ 292,312 | $ 203,498 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net and operating lease right-of-use assets | 256,282 | 174,889 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net and operating lease right-of-use assets | $ 36,030 | $ 28,609 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Related Party Transactions [Abstract] | |||
Revenue from related parties | $ 7.7 | $ 4.3 | $ 9 |
Accounts receivable, related parties | 2.2 | 1.3 | |
Purchases from related party | 26 | 8.8 | $ 3.2 |
Accounts payable, related parties | $ 3.7 | $ 0 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Thousands | Nov. 29, 2021USD ($) | Mar. 05, 2021USD ($) | Sep. 30, 2020USD ($) | Jan. 31, 2022USD ($) | Jan. 31, 2022USD ($)segment | Jan. 31, 2022USD ($)item | Jan. 31, 2021USD ($) |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 416,445 | $ 416,445 | $ 416,445 | $ 83,566 | |||
Number of reportable segments | 1 | 1 | |||||
Secure Circle | |||||||
Business Acquisition [Line Items] | |||||||
Voting equity interest acquired | 100.00% | ||||||
Total consideration transferred | $ 60,800 | ||||||
Fair Value | 18,300 | ||||||
Net tangible assets acquired | (500) | ||||||
Goodwill | $ 43,000 | ||||||
Acquisition related costs | 1,200 | ||||||
Humio Limited | |||||||
Business Acquisition [Line Items] | |||||||
Voting equity interest acquired | 100.00% | ||||||
Total consideration transferred | $ 370,300 | ||||||
Fair Value | 75,600 | ||||||
Net tangible assets acquired | 3,400 | ||||||
Goodwill | 291,300 | ||||||
Acquisition related costs | $ 5,000 | ||||||
Fair value of replacement equity awards | 4,000 | ||||||
Payments to acquire businesses, gross | 353,800 | ||||||
Cash acquired | $ 12,500 | ||||||
Preempt | |||||||
Business Acquisition [Line Items] | |||||||
Voting equity interest acquired | 100.00% | ||||||
Total consideration transferred | $ 91,200 | ||||||
Fair Value | 16,385 | ||||||
Net tangible assets acquired | (500) | ||||||
Goodwill | 75,300 | ||||||
Fair value of replacement equity awards | 3,800 | ||||||
Payments to acquire businesses, gross | $ 87,400 |
Acquisitions- Identifiable Inta
Acquisitions- Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | Nov. 29, 2021 | Mar. 05, 2021 | Sep. 30, 2020 | Jan. 31, 2022 | Jan. 31, 2021 |
Secure Circle | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Fair Value | $ 18,300 | ||||
Humio Limited | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Fair Value | $ 75,600 | ||||
Preempt | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Fair Value | $ 16,385 | ||||
Developed technology | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Useful Life | 79 months | 56 months | |||
Developed technology | Secure Circle | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Fair Value | $ 15,300 | ||||
Useful Life | 72 months | ||||
Developed technology | Humio Limited | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Fair Value | $ 68,800 | ||||
Useful Life | 96 months | ||||
Developed technology | Preempt | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Fair Value | $ 13,200 | ||||
Useful Life | 60 months | ||||
Customer relationships | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Useful Life | 72 months | 54 months | |||
Customer relationships | Secure Circle | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Fair Value | $ 3,000 | ||||
Useful Life | 72 months | ||||
Customer relationships | Humio Limited | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Fair Value | $ 5,400 | ||||
Useful Life | 96 months | ||||
Customer relationships | Preempt | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Fair Value | $ 3,100 | ||||
Useful Life | 60 months | ||||
Trade names | Humio Limited | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Fair Value | $ 1,400 | ||||
Useful Life | 24 months | ||||
Trade names | Preempt | |||||
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 | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Numerator: | |||
Net loss attributable to CrowdStrike | $ (234,802) | $ (92,629) | $ (141,779) |
Denominator: | |||
Weighted-average shares used in computing net loss per share attributable to CrowdStrike common stockholders, basic (in shares) | 227,142 | 217,756 | 148,062 |
Weighted-average shares used in computing net loss per share attributable to CrowdStrike common stockholders, diluted (in shares) | 227,142 | 217,756 | 148,062 |
Net loss per share attributable to CrowdStrike common stockholders, basic (in dollars per share) | $ (1.03) | $ (0.43) | $ (0.96) |
Net loss per share attributable to CrowdStrike common stockholders, diluted (in dollars per share) | $ (1.03) | $ (0.43) | $ (0.96) |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Common Stockholders - Antidilutive (Details) - shares shares in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potential common shares excluded from diluted net loss per share (in shares) | 12,664 | 16,515 | 23,194 |
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) | 198 | 548 | 984 |
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) | 7,886 | 8,449 | 6,063 |
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) | 3,938 | 6,646 | 14,689 |
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) | 642 | 872 | 1,458 |
Net Loss Per Share Attributab_5
Net Loss Per Share Attributable to Common Stockholders - Narrative (Details) $ / shares in Units, $ in Millions | Jan. 31, 2022USD ($)$ / sharesshares |
Business Acquisition [Line Items] | |
Contingent consideration related to business combinations | $ | $ 18.5 |
Shares issued | shares | 14,667 |
Weighted average price (in dollars per share) | $ / shares | $ 243.72 |