Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 30, 2019 | Jun. 30, 2019 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-38933 | |
Entity Registrant Name | CROWDSTRIKE HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 45-3788918 | |
Entity Address, Address Line One | 150 Mathilda Place | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Sunnyvale | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94086 | |
City Area Code | 888 | |
Local Phone Number | 512-8906 | |
Title of 12(b) Security | Class A common stock | |
Trading Symbol | CRWD | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001535527 | |
Current Fiscal Year End Date | --01-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class A common stock | ||
Entity Common Stock, Shares Outstanding | 20,700,000 | |
Class B common stock | ||
Entity Common Stock, Shares Outstanding | 184,298,485 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 30, 2019 | Jan. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 92,993 | $ 88,408 |
Marketable securities | 82,066 | 103,247 |
Accounts receivable, net of allowance for doubtful accounts of $0.7 million and $1.0 million as of April 30, 2019 and January 31, 2019, respectively | 87,355 | 92,476 |
Deferred contract acquisition costs, current | 26,193 | 28,847 |
Prepaid expenses and other current assets | 22,644 | 18,410 |
Total current assets | 311,251 | 331,388 |
Property and equipment, net | 86,349 | 73,735 |
Deferred contract acquisition costs, noncurrent | 38,004 | 9,918 |
Goodwill | 7,809 | 7,947 |
Intangible assets, net | 879 | 1,048 |
Other assets | 13,069 | 9,183 |
Total assets | 457,361 | 433,219 |
Current liabilities: | ||
Accounts payable | 9,915 | 6,855 |
Accrued expenses | 31,185 | 32,541 |
Accrued payroll and benefits | 12,683 | 19,284 |
Deferred revenue | 244,271 | 218,700 |
Other current liabilities | 4,667 | 4,040 |
Total current liabilities | 302,721 | 281,420 |
Deferred revenue, noncurrent | 70,941 | 71,367 |
Other liabilities, noncurrent | 10,964 | 10,313 |
Total liabilities | 384,626 | 363,100 |
Commitments and contingencies (Note 11) | ||
Redeemable Convertible Preferred Stock | ||
Redeemable convertible preferred stock, $0.0005 par value; 137,419 shares authorized as of both April 30, 2019 and January 31, 2019; 131,268 shares issued and outstanding as of both April 30, 2019 and January 31, 2019; liquidation preference $545,000 as of both April 30, 2019 and January 31, 2019 | 557,912 | 557,912 |
Stockholders' Deficit | ||
Common stock, $0.0005 par value; 220,000 shares authorized as of both April 30, 2019 and January 31, 2019; 48,127, and 47,421 shares issued and outstanding as of April 30, 2019 and January 31, 2019, respectively | 24 | 24 |
Additional paid-in capital | 36,670 | 31,211 |
Accumulated deficit | (521,685) | (519,126) |
Accumulated other comprehensive income (loss) | (186) | 98 |
Total stockholders' deficit | (485,177) | (487,793) |
Total liabilities, redeemable convertible preferred stock, and stockholders' deficit | $ 457,361 | $ 433,219 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Apr. 30, 2019 | Jan. 31, 2019 |
Condensed Consolidated Balance Sheets | ||
Accounts receivable, allowance for doubtful accounts | $ 700 | $ 1,000 |
Redeemable preferred stock, par value (in dollars per share) | $ 0.0005 | $ 0.0005 |
Redeemable preferred stock, shares authorized (in shares) | 137,419,000 | 137,419,000 |
Redeemable preferred stock, shares issued (in shares) | 131,268,000 | 131,268,000 |
Redeemable preferred stock, shares outstanding (in shares) | 131,268,000 | 131,268,000 |
Redeemable preferred stock, liquidation preference | $ 545,000 | $ 545,000 |
Common stock, par value (in dollars per share) | $ 0.0005 | $ 0.0005 |
Common stock, shares authorized (in shares) | 220,000,000 | 220,000,000 |
Common stock, shares issued (in shares) | 48,127,000 | 47,421,000 |
Common stock, shares outstanding (in shares) | 48,127,000 | 47,421,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Revenue | ||
Total revenue | $ 96,077 | $ 47,289 |
Cost of revenue | ||
Total cost of revenue | 29,273 | 19,394 |
Gross profit | 66,804 | 27,895 |
Operating expenses | ||
Sales and marketing | 56,843 | 36,617 |
Research and development | 23,875 | 17,615 |
General and administrative | 11,861 | 6,777 |
Total operating expenses | 92,579 | 61,009 |
Loss from operations | (25,775) | (33,114) |
Interest expense | (1) | (192) |
Other income (expense), net | 394 | (190) |
Loss before provision for income taxes | (25,382) | (33,496) |
Provision for income taxes | (595) | (121) |
Net loss | $ (25,977) | $ (33,617) |
Net loss per share attributable to common stockholders, basic and diluted | $ (0.55) | $ (0.77) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 47,205 | 43,614 |
Subscription | ||
Revenue | ||
Total revenue | $ 85,990 | $ 39,758 |
Cost of revenue | ||
Total cost of revenue | 23,691 | 15,171 |
Professional services | ||
Revenue | ||
Total revenue | 10,087 | 7,531 |
Cost of revenue | ||
Total cost of revenue | $ 5,582 | $ 4,223 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Condensed Consolidated Statements of Comprehensive Loss | ||
Net loss | $ (25,977) | $ (33,617) |
Other comprehensive loss: | ||
Foreign currency translation adjustments | (280) | (332) |
Unrealized loss on available-for-sale securities, net of tax | (4) | |
Other comprehensive loss | (284) | (332) |
Total comprehensive loss | $ (26,261) | $ (33,949) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Deficit - USD ($) shares in Thousands, $ in Thousands | Redeemable Convertible Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Total |
Beginning Balance at Jan. 31, 2018 | $ 351,016 | |||||
Beginning Balance (in shares) at Jan. 31, 2018 | 118,693 | |||||
Ending Balance at Apr. 30, 2018 | $ 351,016 | |||||
Ending Balance (in shares) at Apr. 30, 2018 | 118,693 | |||||
Beginning Balance at Jan. 31, 2018 | $ 22 | $ 8,482 | $ (378,948) | $ 970 | $ (369,474) | |
Beginning Balance (in shares) at Jan. 31, 2018 | 44,231 | |||||
Stockholders' Deficit | ||||||
Issuance of common stock upon exercise of options | 751 | 751 | ||||
Issuance of common stock upon exercise of options (in shares) | 499 | |||||
Issuance of common stock related to early exercise options (in shares) | 38 | |||||
Issuance of restricted stock awards (in shares) | 6 | |||||
Vesting of early exercised options | 14 | 14 | ||||
Stock-based compensation expense | 1,719 | 1,719 | ||||
Net loss | (33,617) | (33,617) | ||||
Other comprehensive loss | (332) | (332) | ||||
Ending Balance at Apr. 30, 2018 | $ 22 | 11,067 | (412,666) | 638 | (400,939) | |
Ending Balance (in shares) at Apr. 30, 2018 | 44,774 | |||||
Stockholders' Deficit | ||||||
Cumulative effect of accounting change | 101 | (101) | ||||
Beginning Balance at Jan. 31, 2019 | $ 557,912 | $ 557,912 | ||||
Beginning Balance (in shares) at Jan. 31, 2019 | 131,268 | 131,268 | ||||
Ending Balance at Apr. 30, 2019 | $ 557,912 | $ 557,912 | ||||
Ending Balance (in shares) at Apr. 30, 2019 | 131,268 | 131,268 | ||||
Beginning Balance at Jan. 31, 2019 | $ 24 | 31,211 | (519,126) | 98 | $ (487,793) | |
Beginning Balance (in shares) at Jan. 31, 2019 | 47,421 | |||||
Stockholders' Deficit | ||||||
Issuance of common stock upon exercise of options | 1,510 | 1,510 | ||||
Issuance of common stock upon exercise of options (in shares) | 706 | |||||
Vesting of early exercised options | 144 | 144 | ||||
Stock-based compensation expense | 3,752 | 3,752 | ||||
Capitalized stock-based compensation | 53 | 53 | ||||
Net loss | (25,977) | (25,977) | ||||
Other comprehensive loss | (284) | (284) | ||||
Ending Balance at Apr. 30, 2019 | $ 24 | $ 36,670 | (521,685) | $ (186) | (485,177) | |
Ending Balance (in shares) at Apr. 30, 2019 | 48,127 | |||||
Stockholders' Deficit | ||||||
Cumulative effect of accounting change | $ 23,418 | $ 23,418 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Operating activities | ||
Net loss | $ (25,977) | $ (33,617) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 4,873 | 2,983 |
Amortization of intangible assets | 146 | 166 |
Amortization of deferred contract acquisition costs | 7,345 | 5,596 |
Change in fair value of redeemable convertible preferred stock warrant liability | 1,167 | |
Allowance for doubtful accounts | (254) | 85 |
Stock-based compensation expense | 3,752 | 1,719 |
Accretion of marketable securities purchased at a discount | (513) | (7) |
Other | (424) | 47 |
Changes in operating assets and liabilities | ||
Accounts receivable | 5,375 | 20,684 |
Deferred contract acquisition costs | (8,471) | (5,026) |
Prepaid expenses and other assets | (4,049) | 1,202 |
Accounts payable | 2,818 | 2,316 |
Accrued expenses and other current liabilities | (2,407) | (7,328) |
Accrued payroll and benefits | (6,601) | (4,297) |
Deferred revenue | 24,812 | 9,395 |
Other liabilities, noncurrent | (177) | (311) |
Net cash provided by (used in) operating activities | 1,415 | (6,393) |
Investing activities | ||
Purchases of property and equipment | (15,541) | (8,649) |
Capitalized internal-use software | (1,984) | (1,707) |
Purchases of marketable securities | (51,805) | |
Proceeds from sales of marketable securities | 4,473 | |
Maturities of marketable securities | 68,995 | 2,600 |
Net cash provided by (used in) investing activities | 4,138 | (7,756) |
Financing activities | ||
Repayment of notes receivable from related parties | 198 | |
Payments of indemnity holdback | (500) | |
Payments of deferred offering costs | (2,392) | |
Proceeds from issuance of common stock upon exercise of stock options | 1,510 | 751 |
Net cash provided by (used in) financing activities | (882) | 449 |
Effect of foreign exchange rates on cash and cash equivalents | (86) | (74) |
Net increase (decrease) in cash and cash equivalents | 4,585 | (13,774) |
Cash and cash equivalents, beginning of period | 88,408 | 63,179 |
Cash and cash equivalents, end of period | 92,993 | 49,405 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 1 | 191 |
Income taxes paid | 114 | 187 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Indemnity holdback consideration associated with business combinations | 1,799 | |
Contingent consideration associated with business combinations | 686 | |
Net change in deferred offering costs, accrued but not paid | (1,210) | |
Net change in property and equipment included in accounts payable and accrued expenses | $ (54) | $ (539) |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Apr. 30, 2019 | |
Description of Business and Basis of Presentation | |
Description of Business and Basis of Presentation | 1. Description of Business and Basis of Presentation CrowdStrike Holdings, Inc. (the “Company”) was formed on November 7, 2011. The Company provides a leading cloud-delivered solution for next-generation endpoint protection that offers 10 cloud modules on its Falcon platform via a SaaS subscription-based model that spans multiple large security markets, including endpoint security, security and IT operations (including vulnerability management), and threat intelligence. The Company is headquartered in Sunnyvale, California. The Company conducts its business in the United States, as well as locations internationally, including in Australia, Germany, India, Romania, and the United Kingdom. The Company has funded its operations through several rounds of financings with net proceeds totaling $493.0 million through April 30, 2019. However, the Company has incurred losses and negative cash flows from operations since inception. As of April 30, 2019, the Company had an accumulated deficit of $521.7 million. Management of the Company expects that operating losses and negative cash flows from operations will continue for the foreseeable future. While management believes that the Company’s cash and cash equivalents and marketable securities as of April 30, 2019 are adequate to meet its needs for at least the next twelve months, the Company may need to borrow funds or raise additional equity to achieve its longer term business objectives. On June 14, 2019, the Company closed its initial public offering ("IPO"), in which it sold 20,700,000 shares of Class A common stock. The shares were sold at a public offering price of $34.00 per share for net proceeds of $659.1 million, after deducting underwriters’ discounts and commissions and estimated offering expenses of $44.7 million. Immediately prior to the closing of the IPO, all outstanding shares of redeemable convertible preferred stock automatically converted into 131,267,586 shares of Class B common stock on a one-to-one basis. Additionally, in connection with the IPO all of the Company’s outstanding common stock was reclassified into shares of Class B common stock on a one-for-one basis. Redeemable convertible preferred stock warrants also converted into 336,386 warrants to purchase Class B common stock on a one-to-one basis. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Apr. 30, 2019 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America, ("U.S. GAAP"), and applicable rules and regulations of the Securities and Exchange Commission, ("SEC"), regarding interim financial reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP have been condensed or omitted, and accordingly the balance sheet as of January 31, 2019, and related disclosures, have been derived from the audited consolidated financial statements at that date but do not include all of the information required by U.S. GAAP for complete consolidated financial statements. These unaudited condensed consolidated financial statements have been prepared on the same basis as the Company’s annual consolidated financial statements and, in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for the fair statement of the Company’s condensed consolidated financial information. The results of operations for the three months ended April 30, 2019 are not necessarily indicative of the results to be expected for the year ending January 31, 2020 or for any other interim period or for any other future year. The accompanying interim unaudited condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto for the year ended January 31, 2019 included in the Company’s prospectus dated June 11, 2019 filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933, as amended. Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the applicable required disclosures and regulations of the SEC. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes thereto as of and for the year ended January 31, 2019, included in the Company’s prospectus dated June 11, 2019. JOBS Act Accounting Election The Company is an "emerging growth company" ("EGC") as defined in the Jumpstart Our Business Startups Act of 2012 ("JOBS Act"). An EGC may take advantage of specified reduced reporting requirements that are otherwise applicable generally to public companies, including, but not limited to, delayed adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002 ("Sarbanes-Oxley Act"), reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. The Company may take advantage of these exemptions until it is no longer an EGC. The Company would cease to be an EGC upon the earliest to occur of: (i) the first fiscal year following the fifth anniversary of its initial public offering; (ii) the first fiscal year after annual gross revenue is $1.0 billion or more; (iii) the date on which the Company has, during the previous three-year period, issued more than $1.07 billion in non-convertible debt securities; or (iv) the date on which the Company qualifies as a "large accelerated filer," as defined in Rule 12b-2 under the Exchange Act, which would occur at the end of any fiscal year in which the market value of the Company’s common stock held by non-affiliates exceeded $700.0 million as of the end of the second quarter of that fiscal year, and as of the end of such fiscal year the Company has been a reporting company for at least 12 months. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the Company’s condensed consolidated financial statements and accompanying notes. These estimates are based on information available as of the date of the condensed consolidated financial statements. On a regular basis, management evaluates these estimates and assumptions. Actual results may differ from these estimates and such difference could be material to the Company’s condensed consolidated financial statements. Significant estimates and assumptions used by management affect revenue recognition, the allowance for doubtful accounts, the carrying value of long-lived assets, the useful lives of long-lived assets, the fair value of financial instruments, the period of benefit for deferred contract acquisition costs, the recognition and disclosure of contingent liabilities, the provision for income taxes and related deferred taxes, stock-based compensation, and the fair value of the Company’s common stock and redeemable convertible preferred stock warrants. 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. Due to the nature of the Company’s services and the terms and conditions of the Company’s contracts with its channel partners, the Company’s business could be affected unfavorably if it is not able to continue its relationships with them. Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash, cash equivalents and accounts receivable. The Company’s cash is placed with high-credit-quality financial institutions and issuers, and at times exceed federally insured limits. The Company limits its concentration of risk in cash equivalents and marketable securities by diversifying its investments among a variety of industries and issuers. The Company has not experienced any credit loss relating to its cash equivalents and marketable securities. The Company performs periodic credit evaluations of its customers and generally does not require collateral. Outstanding accounts receivable from one of the Company’s channel partners accounted for 11% of its consolidated accounts receivable as of April 30, 2019. No channel partner accounted for 10% or more of the Company’s consolidated accounts receivable as of January 31, 2019. Outstanding accounts receivable from one of the Company’s direct customers accounted for 11% of its consolidated accounts receivable as of April 30, 2019. Outstanding accounts receivable from two of the Company’s direct customers accounted for 10% and 19% of its consolidated accounts receivable as of January 31, 2019. Revenue from sales to one of the Company’s channel partners accounted for 12% and 17% of its consolidated revenue for the three months ended April 30, 2019 and April 30, 2018, respectively. There were no direct customers who represented 10% or more of the Company’s total revenue during the three months ended April 30, 2019 or April 30, 2018. Cash Equivalents and Marketable Securities The Company considers all highly liquid investments with original maturities of three months or less at date of purchase to be cash equivalents. Cash equivalents as of April 30, 2019 and January 31, 2019 consisted of corporate debt securities and money market funds stated at fair value. The Company classifies investments in marketable securities as available-for-sale securities at the time of purchase, since it is the Company’s intent that these investments are available to support current operations. Marketable securities are classified as current or long-term based on the nature of the investments and their availability for use in current operations. Available-for-sale securities are carried at fair value with unrealized gains and losses, if any, included in accumulated other comprehensive income (loss). Unrealized losses are recorded in other income (expense), net, for declines in fair value below the cost of an individual investment that is deemed to be other-than-temporary. The Company did not identify any marketable securities as other-than-temporarily impaired as of April 30, 2019 and January 31, 2019. The Company determines realized gains or losses on the sale of marketable securities on a specific identification method and records such gains or losses in other income (expense), net. Marketable securities as of April 30, 2019 and January 31, 2019 consisted of corporate debt securities and U.S. treasury securities. Fair Value of Financial Instruments The Company’s financial instruments consist of cash equivalents, marketable securities, accounts receivable, accounts payable, accrued expenses, redeemable convertible preferred stock warrant liability, and loans payable. The carrying values of cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value due to their short-term nature. The Company reports the redeemable convertible preferred stock warrant liability at fair value (see Note 3, Fair Value Measurements Redeemable Convertible Preferred Stock Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount and are non-interest bearing. Accounts receivable are stated at their net realizable value, net of an allowance for doubtful accounts. 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 records an allowance for doubtful accounts based on management’s assessment of the collectability of accounts. Management regularly reviews the adequacy of the allowance for doubtful accounts by considering the age of each outstanding invoice, each customer’s expected ability to pay, and the collection history with each customer, when applicable, to determine whether the allowance is appropriate. Amounts deemed uncollectible are written off against the allowance for doubtful accounts. As of April 30, 2019 and January 31, 2019, the allowance for doubtful accounts was $0.7 million and $1.0 million, respectively. Deferred Offering Costs Deferred offering costs of $4.0 million and $2.9 million have been recorded as other assets on the condensed consolidated balance sheet as of April 30, 2019 and January 31, 2019, respectively, and consist of expenses incurred in connection with the Company’s IPO, including legal, accounting, printing, and other IPO-related costs. Upon closing of the IPO on June 14, 2019 these deferred offering costs 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 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 condensed consolidated statements of operations. Capitalized Internal-Use Software The Company capitalizes certain development costs incurred in connection with its internal-use software. These capitalized costs are primarily related to the Company’s cloud-delivered solution for next-generation endpoint protection. 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 is 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 is 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. There were no impairments of internal-use software during the three months ended April 30, 2019 and April 30, 2018. The Company capitalized $2.0 million and $1.7 million in internal-use software during the three months ended April 30, 2019 and April 30, 2018, respectively. Amortization expense associated with internal-use software totaled $1.5 million and $1.1 million during the three months ended April 30, 2019 and April 30, 2018, respectively. The net book value of capitalized internal-use software was $12.0 million and $11.5 million as of April 30, 2019 and January 31, 2019, respectively. Intangible Assets, Net Intangible assets, net, consisting of developed technology, customer relationships, and non-compete agreements, are stated at cost less accumulated amortization. All intangible assets have been determined to have definite lives and are amortized on a straight-line basis over their estimated economic lives of three to five years. Amortization expense related to developed technology is included in cost of revenue, amortization expense related to customer relationships is included in sales and marketing expenses, and amortization expense related to non-compete agreements is included in research and development expenses. Deferred Contract Acquisition Costs 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 channel partners, paid upon the initial acquisition of a contract or subsequent upsell are amortized over an estimated period of benefit of four years while commissions paid for renewal contracts are amortized over the contractual term of the renewals. Sales commissions associated with professional service contract are amortized ratably over an estimated period of benefit of six months. Amortization of deferred contract acquisition costs is recognized on a straight-line basis commensurate with the pattern of revenue recognition and included in sales and marketing expense in the condensed consolidated statements of operations. The Company capitalized contract acquisition costs of $8.5 million and $5.0 million, which is under ASC 605, during the three months ended April 30, 2019 and April 30, 2018, respectively. Contract acquisition cost amortization expense was $7.3 million and $5.6 million, which is under ASC 605, during the three months ended April 30, 2019 and April 30, 2018, respectively. Impairment of Long-Lived Assets 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 three months ended April 30, 2019 and April 30, 2018. 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 typically invoices 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 revenues 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. 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 condensed 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 sheet. 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 condensed 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 (as defined in Note 7, Redeemable Convertible Preferred Stock Revenue Recognition – ASC 606 The Company adopted ASC 606 on February 1, 2019, using the modified retrospective transition method. Under this method, results for reporting periods beginning on February 1, 2019 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with prior accounting under Topic 605. The Company has shown the effect of applying ASC 606 for the three months ended April 30, 2019 in the disclosures below. The Company recorded a cumulative effect adjustment to opening accumulated deficit of $23.4 million, net of tax, as of the date of adoption. The change resulted from a $23.7 million reduction in the amortization of deferred contract acquisition costs offset by a $0.3 million reduction in revenue. The following tables summarize the effect of the adoption of Topic 606 on the Company’s select line items included in the condensed consolidated financial statements as of and for the three months ended April 30, 2019, as if the previous accounting was in effect: April 30, 2019 January 31, 2019 As Reported Impact of Without Adoption As Reported (ASC 606) Adoption (ASC 605) (ASC 605) (in thousands) Condensed Consolidated Balance Sheet Assets: Deferred contract acquisition costs, current $ 26,193 $ 1,815 $ 28,008 $ 28,847 Deferred contract acquisition costs, noncurrent 38,004 (30,337) 7,667 9,918 Liabilities: Accrued expenses 31,185 (555) 30,630 32,541 Deferred revenue, current 244,271 (250) 244,021 218,700 Deferred revenue, noncurrent 70,941 — 70,941 71,367 Stockholders' Equity: Accumulated deficit (521,685) (27,717) (549,402) (519,126) Three Months Ended April 30, 2019 Three Months Ended April 30, 2018 As Reported Impacts of Without Adoption As Reported (ASC 606) Adoption (ASC 605) (ASC 605) (in thousands) Condensed Consolidated Statement of Operations Revenue $ 96,077 $ (83) $ 95,994 $ 47,289 Operating expenses: Sales and marketing 56,843 4,216 61,059 36,617 Net loss (25,977) (4,299) (30,276) (33,617) Net loss per share, basic and diluted $ (0.55) $ (0.64) $ (0.77) The adoption of Topic 606 had no impact on net cash provided by or used in operating, investing, or financing activities in the Company’s condensed consolidated statement of cash flows for the three months ended April 30, 2019. In accordance with 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, software as a service (“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 to three years. Most of the Company’s contracts are non-cancelable over the contractual term. Customers typically have the right to terminate their contracts for cause if the Company fails to perform in accordance with the contractual terms. Some customers have the option to purchase additional subscription at a stated price. These options generally do not provide a material right as they are priced at our SSP. 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 professional services are available through hourly rate and fixed fee contracts, one-time and ongoing engagements, and retainer-based agreements. Revenue for time and materials arrangements is recognized as services are performed and revenue for fixed fees is recognized on a proportional performance basis as the services are performed. 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 includes 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 condensed 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 most likely amounts expected 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. Revenue Recognition – ASC 605 Prior to adopting ASC 606 on February 1, 2019, the Company recognized subscription and professional services when: (1) persuasive evidence of the contract exists in the form of a written contract, amendments to that contract, or purchase orders from a third party; (2) delivery has occurred, or services have been rendered; (3) the price is fixed or determinable; and (4) collectability is reasonably assured based on customer creditworthiness and history of collection. The timing and the amount the Company recognized as revenue was determined based on the facts and circumstances of each customer’s arrangements. Evidence of an arrangement consisted of a signed customer agreement. The Company considered that the delivery of its solution had commenced once it provided the customer with log-in information and the term of the contract had started. Fees were fixed based on stated rates specified in the customer agreement. The Company assessed collectability based on several factors, including the credit worthiness of the customer and transaction history. If collectability was not reasonably assured, revenue was deferred until the fees were collected. For arrangements that involve the contemporaneous sale of subscription and professional services, the Company applied the multiple-element arrangement guidance to allocate the arrangement consideration to all deliverables based on their relative selling price. The Company determined that the cloud-based platform subscription has standalone value, because once access is given to the customer, the solutions are fully functional and do not require any additional development, modification, or customization. Professional services have standalone value because they are regularly sold by the Company in separate transactions. Additionally, the performance of these professional services generally does not require highly specialized or technologically skilled individuals and the professional services are not essential to the functionality of the solutions. The Company used a hierarchy to determine the selling price to be used for allocating revenue to deliverables: (i) vendor-specific objective evidence of fair value (‘‘VSOE’’); (ii) third-party evidence of selling price (‘‘TPE’’); and (iii) best estimate of selling price (‘‘BESP’’). BESP reflected the Company’s best estimates of what the selling prices of elements would be if they were sold regularly on a stand-alone basis. The Company’s process for determining BESP involved management’s judgment and considered numerous factors including the nature of the deliverables themselves and historical discounting practices. The Company updated its estimates of BESP on an ongoing basis as events and circumstances required. 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 |
Fair Value Measurements and Mar
Fair Value Measurements and Marketable Securities | 3 Months Ended |
Apr. 30, 2019 | |
Fair Value Measurements and Marketable Securities | |
Fair Value Measurements and Marketable Securities | 3. Fair Value Measurements and Marketable Securities The Company follows ASC 820 , Fair Value Measurements 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: April 30, 2019 January 31, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (in thousands) (in thousands) Assets Cash equivalents (1) Money market funds $ 48,499 $ — $ — $ 48,499 $ 42,132 $ — $ — $ 42,132 Corporate debt securities — 33,861 — 33,861 — 27,941 — 27,941 US treasuries — 5,493 — 5,493 — — Total cash equivalents 48,499 39,354 — 87,853 42,132 27,941 — 70,073 Marketable securities Corporate debt securities — 75,124 — 75,124 — 91,796 — 91,796 US treasuries — 6,942 — 6,942 11,451 — — 11,451 Total marketable securities — 82,066 — 82,066 11,451 91,796 — 103,247 Total assets $ 48,499 $ 121,420 $ — $ 169,919 $ 53,583 $ 119,737 $ — $ 173,320 Liability Contingent consideration related to business combinations (2) — — — — — — $ 474 $ 474 Redeemable convertible preferred stock warrant liability — — 5,704 5,704 — — 4,537 4,537 Total liabilities $ — $ — $ 5,704 $ 5,704 $ — $ — $ 5,011 $ 5,011 (1) Included in “Cash and cash equivalents” on the condensed consolidated balance sheets. (2) The contingent consideration consists of development milestone payments. The fair value of the contingent consideration was estimated by developing the risk-adjusted discounted value as well as discounted probability-weighted expected payments. That measure is based on Level 3 inputs which are significant inputs that are not observable in the market. Key assumptions at the acquisition date included (a) a discount rate range of 3%- 3.02% and (b) three probability-adjusted milestone payments, each $0.2 million. As of January 31, 2019, the first milestone payment of $0.2 million had been made. As of April 30, 2019, the remaining milestones were deemed not probable of being paid and the remaining contingent consideration of $0.5 million was written off to Other income (expense), net. There were no transfers between the levels of the fair value hierarchy during the three months ended April 30, 2019 or April 30, 2018. The remaining contractual maturities of marketable securities as of April 30, 2019 and January 31, 2019 were less than one year. The following summarizes the changes in the redeemable convertible preferred stock warrant liability, which is classified as a Level 3 instrument: Three Months Ended April 30, 2019 2018 (in thousands) Balance at beginning of period $ 4,537 $ 961 Adjustment resulting from change in fair value recognized in the consolidated statements of operations 1,167 — Balance at end of period $ 5,704 $ 961 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 contractual term. A loss of $1.2 million and $0 was recorded as a component of Other income (expense), net, because of the remeasurement of the redeemable convertible preferred stock warrant liability during the three months ended April 30, 2019 and April 30, 2018, respectively. |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Apr. 30, 2019 | |
Balance Sheet Components | |
Balance Sheet Components | 4. Balance Sheet Components Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: April 30, January 31, 2019 2019 (in thousands) Prepaid expenses $ 16,861 $ 14,390 Prepaid hosting services 4,280 2,915 Other current assets 1,503 1,105 Prepaid expenses and other current assets $ 22,644 $ 18,410 Property and Equipment, Net Property and equipment, net consisted of the following: April 30, January 31, 2019 2019 (in thousands) Data center and other computer equipment $ 49,526 $ 44,735 Capitalized internal-use software 24,247 22,209 Leasehold improvements 10,075 10,011 Purchased software 1,456 1,460 Furniture and equipment 3,442 2,553 Construction in process 29,147 19,455 117,893 100,423 Less: Accumulated depreciation and amortization (31,544) (26,688) Property and equipment, net $ 86,349 $ 73,735 Construction in process mainly includes data center equipment purchased that has not yet been placed in service. As of April 30, 2019, $28.5 million of data center equipment was purchased but not yet been placed into service. Depreciation and amortization expense of property and equipment was $4.9 million and $3.0 million during the three months ended April 30, 2019 and April 30, 2018, respectively. Intangible Assets, Net Total intangible assets, net consisted of the following: Weighted-Average April 30, January 31, Remaining Useful 2019 2019 Life (in thousands) (in months) Developed technology $ 1,250 $ 1,269 17 Customer relationships 617 632 42 Non-compete agreement 123 126 18 1,990 2,027 Less: Accumulated amortization (1,111) (979) Intangible assets, net $ 879 $ 1,048 Amortization expense of intangible assets was $0.1 million and $0.2 million during the three months ended April 30, 2019 and April 30, 2018, respectively. The estimated aggregate future amortization expense of intangible assets as of April 30, 2019 is as follows: Total (in thousands) Fiscal 2020 (remaining nine months) $ 332 Fiscal 2021 333 Fiscal 2022 126 Fiscal 2023 88 Fiscal 2024 — Total amortization expense $ 879 The developed technology, customer relationships, and non-compete agreement assets are being amortized over 3 years, 5 years, and 3 years, respectively. Accrued Expenses Accrued expenses consisted of the following: April 30, January 31, 2019 2019 (in thousands) Web hosting services $ 10,621 $ 12,224 Accrued purchases of property and equipment 6,258 7,042 Other vendor expenses 13,081 12,326 Amounts due for employee expenses 1,225 949 Accrued expenses $ 31,185 $ 32,541 Accrued Payroll and Benefits Accrued payroll and benefits consisted of the following: April 30, January 31, 2019 2019 (in thousands) Accrued payroll and related expenses $ 2,895 $ 4,326 Accrued bonuses 5,223 5,459 Accrued commissions 4,565 9,499 Accrued payroll and benefits $ 12,683 $ 19,284 |
Secured Revolving Credit Facili
Secured Revolving Credit Facility | 3 Months Ended |
Apr. 30, 2019 | |
Secured Revolving Credit Facility | |
Secured Revolving Credit Facility | 5. 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. The Company also has the option to request an incremental facility of up to an additional $75.0 million from one or more of the lenders under the Credit Agreement. The amount the Company may borrow under the Credit Agreement may not exceed the lesser of $150.0 million or the Company’s ordinary course recurring subscription revenue for the most recent month, as determined under the Credit Agreement, multiplied by a number that is (i) 6, for the first year after entry into the Credit Agreement; (ii) 5, for the second year after entry into the Credit Agreement; and (iii) 4, thereafter. Under the terms of the Credit Agreement, revolving loans may be either Eurodollar Loans or ABR Loans. Outstanding Eurodollar Loans incur interest at the Eurodollar Rate, which is defined in the Credit Agreement as LIBOR (or any successor thereto), plus a margin between 2.75% and 3.25%, depending on usage. Outstanding ABR Loans incur interest at the highest of (a) the Prime Rate, as published by the Wall Street Journal, (b) the federal funds rate in effect for such day plus 0.50%, and (c) the Eurodollar Rate plus 1.00%, in each case plus a margin between 1.75% and 2.25%, depending on usage. The applicable margin for Eurodollar Loans and ABR Loans will be reduced by 0.25% upon the completion of an initial public offering of at least $100.0 million in gross proceeds. The Company will be charged a commitment fee of 0.2% to 0.3% per year for committed but unused amounts. The Credit Agreement will terminate on April 19, 2022. The Credit Agreement is collateralized by substantially all of the Company’s current and future property, rights, and assets, including, but not limited to, cash, goods, equipment, contractual rights, financial assets, and intangible assets of the Company and its subsidiaries. The Credit Agreement contains covenants limiting the ability 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. The Credit Agreement also contains financial covenants requiring the Company to maintain the year-over-year growth rate of its ordinary course recurring subscription revenue above specified rates and to maintain minimum liquidity at specified levels. The Company was in compliance with all covenants as of April 30, 2019. The Credit Agreement contains events of default that include, among others, non-payment of principal, interest, or fees, breach of covenants, inaccuracy of representations and warranties, cross defaults to certain other indebtedness, bankruptcy and insolvency events, and material judgments. No amounts were outstanding under the Credit Agreement as of April 30, 2019 or January 31, 2019. |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 30, 2019 | |
Income Taxes | |
Income Taxes | 6. Income Taxes The Company recognized an income tax expense of $0.6 million and $0.1 million for the three months ended April 30, 2019 and 2018, respectively. The tax expense for the three months ended April 30, 2019 was primarily attributable to pre-tax foreign earnings. The Company’s effective tax rates of (2.3%) and (0.4%) for the three months ended April 30, 2019 and April 30, 2018 differ from the U.S. statutory tax rate primarily due to valuation allowance recorded against domestic losses and the tax rate differences between the United States and foreign countries. The Company has a full valuation allowance on its U.S. federal and state deferred tax assets. As a result, consistent with the prior year, the Company is unable to record a tax benefit on these losses because of uncertainty of future profitability. |
Redeemable Convertible Preferre
Redeemable Convertible Preferred Stock | 3 Months Ended |
Apr. 30, 2019 | |
Redeemable Convertible Preferred Stock | |
Redeemable Convertible Preferred Stock | 7. Redeemable Convertible Preferred Stock The following table summarizes the authorized, issued, and outstanding redeemable convertible preferred stock of the Company as of April 30, 2019: Shares Net Issue Price Shares Issued and Carrying Liquidation Redemption Class per Share Authorized Outstanding Value Preference Value (in thousands, except per share values) Series A-1 $ 0.50000 52,300 52,300 $ 76,325 $ 52,300 $ 823,725 Series B 1.40500 21,523 21,352 44,320 30,000 336,294 Series C 4.52972 22,275 22,077 99,900 100,000 347,713 Series D 5.69153 17,570 17,570 99,845 125,000 276,728 Series D-1 5.69153 5,394 5,394 30,626 30,700 84,956 Series E 16.46136 18,357 12,575 206,896 207,000 207,000 Total 137,419 131,268 557,912 545,000 2,076,416 The following table summarizes the authorized, issued, and outstanding redeemable convertible preferred stock of the Company as of January 31, 2019: Shares Net Issue Price Shares Issued and Carrying Liquidation Redemption Class per Share Authorized Outstanding Value Preference Value (in thousands, except per share values) Series A-1 $ 0.50000 52,300 52,300 $ 76,325 $ 52,300 $ 623,678 Series B 1.40500 21,523 21,352 44,320 30,000 254,623 Series C 4.52972 22,275 22,077 99,900 100,000 263,765 Series D 5.69153 17,570 17,570 99,845 125,000 211,631 Series D-1 5.69153 5,394 5,394 30,626 30,700 64,607 Series E 16.46136 18,357 12,575 206,896 207,000 207,000 Total 137,419 131,268 557,912 545,000 1,625,304 Upon the closing of the Company’s IPO on June 14, 2019, all shares of convertible preferred stock then outstanding, totaling 131,267,586 shares, were automatically converted into an equivalent number of shares of Class B common stock on a one-to-one basis and the carrying value, totaling $557.9 million, was reclassified into Class B common stock and additional paid-in capital on the condensed consolidated balance sheet. |
Common Stock
Common Stock | 3 Months Ended |
Apr. 30, 2019 | |
Common Stock | |
Common Stock | 8. Common Stock The Company’s authorized capital consisted of 220,000,000 shares of common stock, par value $0.0005 per share, as of April 30, 2019 and January 31, 2019. The Company has also issued incentive stock options (see Note 9, Stock-Based Compensation The Company had reserved shares of common stock for future issuance as follows: April 30, January 31, 2019 2019 (in thousands) Conversion of Series A-1 redeemable convertible preferred stock 52,300 52,300 Conversion of Series B redeemable convertible preferred stock 21,352 21,352 Conversion of Series C redeemable convertible preferred stock 22,077 22,077 Conversion of Series D redeemable convertible preferred stock 17,570 17,570 Conversion of Series D-1 redeemable convertible preferred stock 5,394 5,394 Conversion of Series E redeemable convertible preferred stock 12,575 12,575 Exercise and conversion of Series B redeemable convertible preferred stock warrants 171 171 Exercise and conversion of Series C redeemable convertible preferred stock warrants 165 165 Stock options issued and outstanding 26,200 26,535 RSUs issued and outstanding 4,753 4,059 Remaining shares available for future issuance under the 2011 Stock Incentive Plan 477 1,540 Total shares of common stock reserved 163,034 163,738 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Apr. 30, 2019 | |
Stock-Based Compensation | |
Stock-Based Compensation | 9. Stock-Based Compensation Stock Incentive Plan Effective November 18, 2011, the Company established the CrowdStrike Holdings, Inc. 2011 Stock Incentive Plan (the “2011 Plan”). The Stock Incentive Plan provides for the grant of incentive and nonqualified stock options and restricted stock awards (“RSAs”) to qualified employees, officers, nonemployee directors, and consultants of the Company. The maximum number of shares of common stock, that may be issued pursuant to the 2011 Plan was 79,498,016 as of both April 30, 2019 and January 31, 2019. 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: Three Months Ended April 30, 2019 2018 Expected term (in years) 6.05 6.05 Risk-free interest rate 2.4 % 2.6 % Expected stock price volatility 37.9 % 38.4 % Dividend yield — % — % The following table is a summary of stock option activity for the three months ended April 30, 2019: Weighted- Average Number of Exercise Price Shares Per Share (in thousands) Options outstanding at January 31, 2019 26,535 $ 3.87 Granted 880 $ 14.65 Exercised (706) $ 2.14 Canceled (509) $ 7.34 Options outstanding at April 30, 2019 26,200 $ 4.21 Options vested and expected to vest at April 30, 2019 26,200 $ 4.21 Options exercisable at April 30, 2019 15,505 $ 2.49 Options exercisable include 2,291,556 options that were unvested as of April 30, 2019. The aggregate intrinsic value of options vested and exercisable was $188.5 million and $181.1 million as of April 30, 2019 and January 31, 2019, respectively. The weighted-average remaining contractual term of options vested and exercisable was 6.9 years and 7.1 years as of April 30, 2019 and January 31, 2019, respectively. The weighted-average grant date fair values of all options granted was $8.76 and $5.44 per share during the three months ended April 30, 2019 and April 30, 2018, respectively. The total intrinsic value of all options exercised was $8.8 million and $1.0 million during the three months ended April 30, 2019 and April 30, 2018, respectively. The total fair value of all options vested was $4.2 million and $0.9 million during the three months ended April 30, 2019 and April 30, 2018, respectively. The aggregate intrinsic value of stock options outstanding as of April 30, 2019 and January 31, 2019 was $273.6 million and $286.1 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 7.7 years and 7.9 years as of April 30, 2019 and January 31, 2019, respectively. Total unrecognized stock-based compensation expense related to unvested options was $47.2 million as of April 30, 2019. This expense is expected to be amortized on a straight-line basis over a weighted-average vesting period of 3.3 years. Total unrecognized stock-based compensation expense related to unvested options was $45.8 million as of January 31, 2019. This expense is expected to be amortized on a straight-line basis over a weighted-average vesting period of 3.4 years. Early Exercise of Employee Options The 2011 Stock Plan allows for the early exercise of stock options for certain individuals as determined by the Board of Directors. The consideration received for an early exercise of an option is a deposit of the exercise price and the related dollar amount is recorded as a liability for early exercise of unvested stock options in the condensed consolidated balance sheets. This liability is reclassified to additional paid-in capital as the awards vest. If a stock option is early exercised, the unvested shares may be repurchased by the Company in case of employment termination or for any reason, including death and disability, at the price paid by the purchaser for such shares. During the three months ended April 30, 2019, the Company did not issue any shares of common stock related to early exercised stock options. As of April 30, 2019, the number of shares of common stock related to early exercised stock options subject to repurchase was 465,626 shares for $1.0 million. As of January 31, 2019, the number of shares of common stock related to early exercised stock options subject to repurchase was 545,941 shares for $1.2 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 on the statement of redeemable convertible preferred stock and stockholders’ deficit. Restricted Stock Units Beginning in September 2018, the Company began issuing RSUs to certain employees. These RSUs include a service-based vesting condition and a performance-based vesting condition. The service-based vesting condition is generally satisfied based on one of three 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 beginning on December 20, 2018, subject to continued service, or (iii) vesting in eight equal quarterly installments beginning on December 20, 2022, subject to continued service. The performance-based vesting condition is satisfied on the earlier of (i) a change in control, in which the consideration paid to holders of shares is either cash, publicly traded securities, or a combination thereof, or (ii) the first Company vest date to occur following the expiration of the lock-up period upon an IPO, subject to continued service through such change in control or lock-up expiration, as applicable. None of the RSUs vest unless the performance-based vesting condition is satisfied. As of April 30, 2019 the performance based vesting condition had not yet been met, and thus no stock-based compensation relating to these RSUs was recognized. In the quarter in which the performance-based vesting condition becomes probable of being met, the Company will begin recording stock-based compensation expense using the accelerated attribution method based on the grant date fair value of the RSUs. As of April 30, 2019, the total amount of stock-based compensation expense deferred related to this performance-based vesting condition was approximately $13.0 million. The following table is a summary of RSU activity for the three months ended April 30, 2019: Weighted- Average Grant Number of Date Fair Value Shares Per Share (in thousands) RSUs outstanding at January 31, 2019 4,059 $ 12.66 Granted 853 $ 18.32 Vested — $ — Forfeited (159) $ 12.62 RSUs outstanding at April 30, 2019 4,753 $ 13.33 RSUs expected to vest at April 30, 2019 4,753 $ 13.33 Stock-Based Compensation Expense Stock-based compensation expense included in the condensed consolidated statements of operations is as follows: Three Months Ended April 30, 2019 2018 (in thousands) Cost of revenue $ 368 $ 109 Sales and marketing 1,518 773 Research and development 681 448 General and administrative 1,185 389 Total stock-based compensation expense $ 3,752 $ 1,719 |
Revenue, Deferred Revenue and R
Revenue, Deferred Revenue and Remaining Performance Obligations | 3 Months Ended |
Apr. 30, 2019 | |
Revenue, Deferred Revenue and Remaining Performance Obligations | |
Revenue, Deferred Revenue and Remaining Performance Obligations | 10. Revenue, Deferred Revenue and Remaining Performance Obligations The following table summarizes the revenue from contracts by type of customer: Three Months Ended April 30, 2019 Amount % Revenue (in thousands, except percentages) Channel Partners $ 64,460 67 % Direct Customers 31,617 33 % Total revenue $ 96,077 100 % 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 cloud platform: Three Months Ended April 30, 2019 Amount % Revenue (in thousands, except percentages) United States $ 72,307 75 % Europe, Middle East, and Africa 13,414 14 % Asia Pacific 6,230 7 % Other 4,126 4 % Total revenue $ 96,077 100 % No single country other than the United States represented 10% or more of the Company’s total revenue during the three months ended April 30, 2019 or April 30, 2018. 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. For the three months ended April 30, 2019, the Company recognized revenue of $79.9 million that was 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 for the three months ended April 30, 2019 were as follows (in thousands): Carrying Amount Balance as of January 31, 2019 $ 290,067 Additions to deferred revenue 121,222 Recognition of deferred revenue (96,077) Balance as of April 30, 2019 $ 315,212 Remaining Performance Obligations The Company's subscription contracts with its customers have a typical term of one to three years and most subscription contracts are non-cancelable. Customers typically have the right to terminate their contracts for cause as a result of the Company’s failure to perform. As of April 30, 2019, the aggregate amount of the transaction price allocated to remaining performance obligations was $386.0 million. The Company expects to recognize 69% of the transaction price in the 12 months following April 30, 2019, and the remainder to be recognized thereafter. Costs to Obtain and Fulfill a Contract The Company capitalizes sales commission and associated payroll taxes paid to internal sales personnel 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 on the condensed consolidated balance sheet. Sales commissions for renewal of a contract are not considered commensurate with the commissions paid for the acquisition of the initial contract or follow-on upsell given the substantive difference in commission rates in proportion to their respective contract values. Commissions, including referral fees paid to channel partners, paid upon the initial acquisition of a contract or subsequent upsell are amortized over an estimated period of benefit of four years while commissions paid 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. Amortization of deferred contract acquisition costs is recognized on a straight-line basis commensurate with the pattern of revenue recognition and included in sales and marketing expense in the condensed consolidated statements of operations. In determining the period of benefit for commissions paid for the acquisition of the initial contract, the Company took into consideration the expected subscription term and expected renewals of customer contracts, the historical duration of relationships with customers, customer retention data, and the life of the developed technology. The Company periodically reviews the carrying amount of deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these deferred costs. The Company did not recognize any impairment losses of deferred contract acquisition costs during the three months ended April 30, 2019. The following table summarizes the activity of deferred contract acquisition costs: Three Months Ended April 30, 2019 (in thousands) Balance, February 1, 2019 $ 63,071 Capitalization of contract acquisition costs 8,471 Amortization of deferred contract acquisition costs (7,345) Balance, April 30, 2019 $ 64,197 Deferred contract acquisition costs, current $ 26,193 Deferred contract acquisition costs, noncurrent 38,004 Total deferred contract acquisition costs $ 64,197 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 30, 2019 | |
Commitments and Contingencies | |
Commitments and Contingencies | 11. Commitments and Contingencies Lease Commitments The Company leases its office space under various non-cancelable operating lease agreements. Leases expire at various dates through fiscal year 2027. The aggregate future minimum payments under noncancelable operating leases as of April 30, 2019 were as follows: Operating Leases (in thousands) Fiscal 2020 (remaining nine months) $ 4,300 Fiscal 2021 5,469 Fiscal 2022 5,229 Fiscal 2023 4,365 Fiscal 2024 3,090 Thereafter 1,712 Total minimum lease payments $ 24,165 Rent expense was $1.8 million and $1.5 million during the three months ended April 30, 2019 and April 30, 2018, respectively. 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. The Company is committed to spend $207.4 million on such agreements through 2027. 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 noncancelable purchase obligations as of April 30, 2019 with expected date of payment is as follows: Total Commitments (in thousands) Fiscal 2020 (remaining nine months) $ 45,693 Fiscal 2021 72,159 Fiscal 2022 87,183 Fiscal 2023 8,445 Fiscal 2024 7,330 Thereafter 1,540 Total purchase commitments $ 222,350 Letters of Credit As of April 30, 2019 and January 31, 2019, the Company had an unused standby letter of credit for $0.5 million securing its headquarters facility in Sunnyvale, California and an unused standby letter of credit for $0.8 million securing its facility in Austin, Texas. Litigation The Company is currently involved in proceedings before the Trademark Trial and Appeal Board (“TTAB”) at the U.S. Patent and Trademark Office (“USPTO”) regarding its U.S. trademark registrations for ``CrowdStrike Falcon” and its U.S. application to register its ``Falcon OverWatch” trademark. On November 23, 2016, Fair Isaac Corporation (“FICO”) filed a Petition for Cancellation of the Company’s "CrowdStrike Falcon” trademark registrations and a Notice of Opposition against the Company’s "Falcon OverWatch” trademark application before the TTAB. On January 3, 2017, the Company filed answers to both the cancellation and opposition proceedings, and the proceedings thereafter were consolidated. On November 21, 2018, the Company filed a Petition for Partial Cancellation or Amendment of one of FICO’s "Falcon” trademark registrations, and on December 10, 2018, the parties filed a joint request to consolidate the proceedings and adjust the schedule. On January 16, 2019, FICO moved to dismiss the Company’s petition, and the TTAB thereafter suspended all proceedings pending its ruling on the motions. On July 2, 2019, the TTAB issued an order granting the request to consolidate the proceedings, and granting the motion to dismiss with leave to file an amended petition by July 22, 2019. The order also set a schedule with trial proceedings to close no earlier than 2021. The Company is vigorously defending the case, but given the early stage, although a loss may reasonably be possible, the Company is unable to predict the likelihood of success of Fair Isaac’s claims or estimate a loss or range of loss. As a result, In addition, from time to time the Company is a party to various litigation matters and subject to claims that arise in the ordinary course of business. In addition, third parties may from time to time assert claims against the Company in the form of letters and other communications. For any claims for which the Company believes a liability is both probable and reasonably estimable, the Company records a liability in the period for which it makes this determination. There is no pending or threatened legal proceeding to which the Company is a party that, in the Company’s opinion, is likely to have a material adverse effect on its condensed consolidated financial statements; however, the results of litigation and claims are inherently unpredictable. Regardless of the outcome, litigation can have an adverse impact on the Company’s business because of defense and settlement costs, diversion of management resources, and other factors. In addition, the expense of litigation and the timing of this expense from period to period are difficult to estimate, subject to change and could adversely affect the Company’s results of operations. 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 module 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 cover its potential liability arising from this limited warranty arrangement. To date, the Company has not incurred any material costs because of such obligations and has not accrued any liabilities related to such obligations in the condensed consolidated financial statements. The Company has also agreed to indemnify its directors and 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 April 30, 2019 or January 31, 2019. |
Geographic Information
Geographic Information | 3 Months Ended |
Apr. 30, 2019 | |
Geographic Information | |
Geographic Information | 12. Geographic Information The Company’s long-lived assets are composed of property and equipment, net, and are summarized by geographic area as follows: April 30, January 31, 2019 2019 (in thousands) United States $ 83,533 $ 70,699 International 2,816 3,036 Total property and equipment, net $ 86,349 $ 73,735 Other than the United States, no other country represented 10% or more of our total property and equipment as of April 30, 2019 or January 31, 2019. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Apr. 30, 2019 | |
Related Party Transactions | |
Related Party Transactions | 13. Related Party Transactions Subscription and Professional Services Revenue from Related Parties During the three months ended April 30, 2019 and 2018, certain investors and companies with whom the Company’s Board of Directors are affiliated purchased subscriptions and professional services. The Company recorded revenue from subscriptions and professional services from related parties of $2.3 million and $1.4 million during the three months ended April 30, 2019 and April 30, 2018, respectively. Accounts receivable associated with these related parties was $0.3 million and $0.2 million as of April 30, 2019 and January 31, 2019, respectively. Accounts Payable to Related Parties During the three months ended April 30, 2019 and 2018, the Company purchased goods and services totaling $0.6 million and $0.4 million, respectively, from certain investors and companies with whom its Board of Directors are affiliated. Accounts payable to such vendors was less than $0.1 million as of both April 30, 2019 and January 31, 2019. |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 3 Months Ended |
Apr. 30, 2019 | |
Net Loss Per Share Attributable to Common Stockholders | |
Net Loss Per Share Attributable to Common Stockholders | 14. Net Loss Per Share Attributable to Common Stockholders The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders: Three Months Ended April 30, 2019 2018 Net loss attributable to common stockholders $ (25,977) $ (33,617) Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 47,205 43,614 Net loss per share attributable to common stockholders, basic and diluted $ (0.55) $ (0.77) Since the Company was in a net loss position for all periods presented, basic net loss per share is the same as diluted net loss per share as the inclusion of all potential common shares outstanding would have been antidilutive. 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: April 30, April 30, 2019 2018 (in thousands) Shares of common stock issuable upon conversion of redeemable convertible preferred stock 131,268 118,693 Shares of common stock issuable upon conversion of redeemable convertible preferred stock warrants 336 336 Shares of common stock subject to repurchase from outstanding stock options 466 844 Shares of common stock issuable from stock options 26,200 24,109 Potential common shares excluded from diluted net loss per share 158,270 143,982 The table above does not include 4,753,005 RSUs outstanding as of April 30, 2019, as these RSUs are subject to a performance- based vesting condition that had not yet been considered probable of being met. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Apr. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. Subsequent Events Initial Public Offering On June 14, 2019, the Company closed its IPO, in which it sold 20,700,000 shares of Class A common stock. The shares were sold at a public offering price of $34.00 per share for net proceeds of $659.1 million, after deducting underwriters’ discounts and commissions and estimated offering expenses of $44.7 million. Immediately prior to the closing of the IPO, all outstanding shares of redeemable convertible preferred stock automatically converted into 131,267,586 shares of Class B common stock on a one-to-one basis. Additionally, in connection with the IPO, all of the Company’s outstanding common stock was reclassified into shares of Class B common stock on a one-for-one basis. Redeemable convertible preferred stock warrants also converted into 336,386 warrants to purchase Class B common stock on a one-to-one basis. 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. Deferred Offering Costs As of April 30, 2019, there was $4.0 million of deferred offering costs which were classified as other assets on the condensed consolidated balance sheet. Upon the completion of the IPO, these costs were reclassified to stockholders’ deficit as a reduction of the net proceeds received from the IPO. RSU Expense As of April 30, 2019, the total amount of stock-based compensation expense deferred related to RSUs with a performance-based vesting condition was approximately $13.0 million. Upon the completion of the IPO on June 14, 2019, the performance-based vesting condition was met and the Company recognized all deferred expense related to RSUs as of that date in its condensed consolidated statement of operations. 2019 Equity 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 and 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 our 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%) 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 our 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. 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 our 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 our capital stock as of the last day of the immediately preceding fiscal year or (ii) such other amount as our board of directors may determine. 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 is scheduled to end on the first trading day on or before 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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 30, 2019 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America, ("U.S. GAAP"), and applicable rules and regulations of the Securities and Exchange Commission, ("SEC"), regarding interim financial reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP have been condensed or omitted, and accordingly the balance sheet as of January 31, 2019, and related disclosures, have been derived from the audited consolidated financial statements at that date but do not include all of the information required by U.S. GAAP for complete consolidated financial statements. These unaudited condensed consolidated financial statements have been prepared on the same basis as the Company’s annual consolidated financial statements and, in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for the fair statement of the Company’s condensed consolidated financial information. The results of operations for the three months ended April 30, 2019 are not necessarily indicative of the results to be expected for the year ending January 31, 2020 or for any other interim period or for any other future year. The accompanying interim unaudited condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto for the year ended January 31, 2019 included in the Company’s prospectus dated June 11, 2019 filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933, as amended. |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the applicable required disclosures and regulations of the SEC. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes thereto as of and for the year ended January 31, 2019, included in the Company’s prospectus dated June 11, 2019. |
JOBS Act Accounting Election | JOBS Act Accounting Election The Company is an "emerging growth company" ("EGC") as defined in the Jumpstart Our Business Startups Act of 2012 ("JOBS Act"). An EGC may take advantage of specified reduced reporting requirements that are otherwise applicable generally to public companies, including, but not limited to, delayed adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002 ("Sarbanes-Oxley Act"), reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. The Company may take advantage of these exemptions until it is no longer an EGC. The Company would cease to be an EGC upon the earliest to occur of: (i) the first fiscal year following the fifth anniversary of its initial public offering; (ii) the first fiscal year after annual gross revenue is $1.0 billion or more; (iii) the date on which the Company has, during the previous three-year period, issued more than $1.07 billion in non-convertible debt securities; or (iv) the date on which the Company qualifies as a "large accelerated filer," as defined in Rule 12b-2 under the Exchange Act, which would occur at the end of any fiscal year in which the market value of the Company’s common stock held by non-affiliates exceeded $700.0 million as of the end of the second quarter of that fiscal year, and as of the end of such fiscal year the Company has been a reporting company for at least 12 months. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the Company’s condensed consolidated financial statements and accompanying notes. These estimates are based on information available as of the date of the condensed consolidated financial statements. On a regular basis, management evaluates these estimates and assumptions. Actual results may differ from these estimates and such difference could be material to the Company’s condensed consolidated financial statements. Significant estimates and assumptions used by management affect revenue recognition, the allowance for doubtful accounts, the carrying value of long-lived assets, the useful lives of long-lived assets, the fair value of financial instruments, the period of benefit for deferred contract acquisition costs, the recognition and disclosure of contingent liabilities, the provision for income taxes and related deferred taxes, stock-based compensation, and the fair value of the Company’s common stock and redeemable convertible preferred stock warrants. |
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. Due to the nature of the Company’s services and the terms and conditions of the Company’s contracts with its channel partners, the Company’s business could be affected unfavorably if it is not able to continue its relationships with them. Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash, cash equivalents and accounts receivable. The Company’s cash is placed with high-credit-quality financial institutions and issuers, and at times exceed federally insured limits. The Company limits its concentration of risk in cash equivalents and marketable securities by diversifying its investments among a variety of industries and issuers. The Company has not experienced any credit loss relating to its cash equivalents and marketable securities. The Company performs periodic credit evaluations of its customers and generally does not require collateral. Outstanding accounts receivable from one of the Company’s channel partners accounted for 11% of its consolidated accounts receivable as of April 30, 2019. No channel partner accounted for 10% or more of the Company’s consolidated accounts receivable as of January 31, 2019. Outstanding accounts receivable from one of the Company’s direct customers accounted for 11% of its consolidated accounts receivable as of April 30, 2019. Outstanding accounts receivable from two of the Company’s direct customers accounted for 10% and 19% of its consolidated accounts receivable as of January 31, 2019. Revenue from sales to one of the Company’s channel partners accounted for 12% and 17% of its consolidated revenue for the three months ended April 30, 2019 and April 30, 2018, respectively. There were no direct customers who represented 10% or more of the Company’s total revenue during the three months ended April 30, 2019 or April 30, 2018. |
Cash Equivalents and Marketable Securities | Cash Equivalents and Marketable Securities The Company considers all highly liquid investments with original maturities of three months or less at date of purchase to be cash equivalents. Cash equivalents as of April 30, 2019 and January 31, 2019 consisted of corporate debt securities and money market funds stated at fair value. The Company classifies investments in marketable securities as available-for-sale securities at the time of purchase, since it is the Company’s intent that these investments are available to support current operations. Marketable securities are classified as current or long-term based on the nature of the investments and their availability for use in current operations. Available-for-sale securities are carried at fair value with unrealized gains and losses, if any, included in accumulated other comprehensive income (loss). Unrealized losses are recorded in other income (expense), net, for declines in fair value below the cost of an individual investment that is deemed to be other-than-temporary. The Company did not identify any marketable securities as other-than-temporarily impaired as of April 30, 2019 and January 31, 2019. The Company determines realized gains or losses on the sale of marketable securities on a specific identification method and records such gains or losses in other income (expense), net. Marketable securities as of April 30, 2019 and January 31, 2019 consisted of corporate debt securities and U.S. treasury securities. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments consist of cash equivalents, marketable securities, accounts receivable, accounts payable, accrued expenses, redeemable convertible preferred stock warrant liability, and loans payable. The carrying values of cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value due to their short-term nature. The Company reports the redeemable convertible preferred stock warrant liability at fair value (see Note 3, Fair Value Measurements Redeemable Convertible Preferred Stock |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount and are non-interest bearing. Accounts receivable are stated at their net realizable value, net of an allowance for doubtful accounts. 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 records an allowance for doubtful accounts based on management’s assessment of the collectability of accounts. Management regularly reviews the adequacy of the allowance for doubtful accounts by considering the age of each outstanding invoice, each customer’s expected ability to pay, and the collection history with each customer, when applicable, to determine whether the allowance is appropriate. Amounts deemed uncollectible are written off against the allowance for doubtful accounts. As of April 30, 2019 and January 31, 2019, the allowance for doubtful accounts was $0.7 million and $1.0 million, respectively. |
Deferred Offering Costs | Deferred Offering Costs Deferred offering costs of $4.0 million and $2.9 million have been recorded as other assets on the condensed consolidated balance sheet as of April 30, 2019 and January 31, 2019, respectively, and consist of expenses incurred in connection with the Company’s IPO, including legal, accounting, printing, and other IPO-related costs. Upon closing of the IPO on June 14, 2019 these deferred offering costs 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 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 condensed consolidated statements of operations. |
Capitalized Internal Use Software | Capitalized Internal-Use Software The Company capitalizes certain development costs incurred in connection with its internal-use software. These capitalized costs are primarily related to the Company’s cloud-delivered solution for next-generation endpoint protection. 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 is 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 is 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. There were no impairments of internal-use software during the three months ended April 30, 2019 and April 30, 2018. The Company capitalized $2.0 million and $1.7 million in internal-use software during the three months ended April 30, 2019 and April 30, 2018, respectively. Amortization expense associated with internal-use software totaled $1.5 million and $1.1 million during the three months ended April 30, 2019 and April 30, 2018, respectively. The net book value of capitalized internal-use software was $12.0 million and $11.5 million as of April 30, 2019 and January 31, 2019, respectively. |
Intangible Assets, Net | Intangible Assets, Net Intangible assets, net, consisting of developed technology, customer relationships, and non-compete agreements, are stated at cost less accumulated amortization. All intangible assets have been determined to have definite lives and are amortized on a straight-line basis over their estimated economic lives of three to five years. Amortization expense related to developed technology is included in cost of revenue, amortization expense related to customer relationships is included in sales and marketing expenses, and amortization expense related to non-compete agreements is included in research and development expenses. |
Deferred Contract Acquisition Costs | Deferred Contract Acquisition Costs 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 channel partners, paid upon the initial acquisition of a contract or subsequent upsell are amortized over an estimated period of benefit of four years while commissions paid for renewal contracts are amortized over the contractual term of the renewals. Sales commissions associated with professional service contract are amortized ratably over an estimated period of benefit of six months. Amortization of deferred contract acquisition costs is recognized on a straight-line basis commensurate with the pattern of revenue recognition and included in sales and marketing expense in the condensed consolidated statements of operations. The Company capitalized contract acquisition costs of $8.5 million and $5.0 million, which is under ASC 605, during the three months ended April 30, 2019 and April 30, 2018, respectively. Contract acquisition cost amortization expense was $7.3 million and $5.6 million, which is under ASC 605, during the three months ended April 30, 2019 and April 30, 2018, respectively. |
Impairment of Long Lived Assets | Impairment of Long-Lived Assets 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 three months ended April 30, 2019 and April 30, 2018. |
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 typically invoices 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 revenues 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. 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 condensed 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 sheet. 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 condensed 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 (as defined in Note 7, Redeemable Convertible Preferred Stock |
Revenue Recognition - ASC 606 | Revenue Recognition – ASC 606 The Company adopted ASC 606 on February 1, 2019, using the modified retrospective transition method. Under this method, results for reporting periods beginning on February 1, 2019 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with prior accounting under Topic 605. The Company has shown the effect of applying ASC 606 for the three months ended April 30, 2019 in the disclosures below. The Company recorded a cumulative effect adjustment to opening accumulated deficit of $23.4 million, net of tax, as of the date of adoption. The change resulted from a $23.7 million reduction in the amortization of deferred contract acquisition costs offset by a $0.3 million reduction in revenue. The following tables summarize the effect of the adoption of Topic 606 on the Company’s select line items included in the condensed consolidated financial statements as of and for the three months ended April 30, 2019, as if the previous accounting was in effect: April 30, 2019 January 31, 2019 As Reported Impact of Without Adoption As Reported (ASC 606) Adoption (ASC 605) (ASC 605) (in thousands) Condensed Consolidated Balance Sheet Assets: Deferred contract acquisition costs, current $ 26,193 $ 1,815 $ 28,008 $ 28,847 Deferred contract acquisition costs, noncurrent 38,004 (30,337) 7,667 9,918 Liabilities: Accrued expenses 31,185 (555) 30,630 32,541 Deferred revenue, current 244,271 (250) 244,021 218,700 Deferred revenue, noncurrent 70,941 — 70,941 71,367 Stockholders' Equity: Accumulated deficit (521,685) (27,717) (549,402) (519,126) Three Months Ended April 30, 2019 Three Months Ended April 30, 2018 As Reported Impacts of Without Adoption As Reported (ASC 606) Adoption (ASC 605) (ASC 605) (in thousands) Condensed Consolidated Statement of Operations Revenue $ 96,077 $ (83) $ 95,994 $ 47,289 Operating expenses: Sales and marketing 56,843 4,216 61,059 36,617 Net loss (25,977) (4,299) (30,276) (33,617) Net loss per share, basic and diluted $ (0.55) $ (0.64) $ (0.77) The adoption of Topic 606 had no impact on net cash provided by or used in operating, investing, or financing activities in the Company’s condensed consolidated statement of cash flows for the three months ended April 30, 2019. In accordance with 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, software as a service (“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 to three years. Most of the Company’s contracts are non-cancelable over the contractual term. Customers typically have the right to terminate their contracts for cause if the Company fails to perform in accordance with the contractual terms. Some customers have the option to purchase additional subscription at a stated price. These options generally do not provide a material right as they are priced at our SSP. 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 professional services are available through hourly rate and fixed fee contracts, one-time and ongoing engagements, and retainer-based agreements. Revenue for time and materials arrangements is recognized as services are performed and revenue for fixed fees is recognized on a proportional performance basis as the services are performed. 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 includes 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 condensed 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 most likely amounts expected 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. |
Revenue Recognition - ASC 605 | Revenue Recognition – ASC 605 Prior to adopting ASC 606 on February 1, 2019, the Company recognized subscription and professional services when: (1) persuasive evidence of the contract exists in the form of a written contract, amendments to that contract, or purchase orders from a third party; (2) delivery has occurred, or services have been rendered; (3) the price is fixed or determinable; and (4) collectability is reasonably assured based on customer creditworthiness and history of collection. The timing and the amount the Company recognized as revenue was determined based on the facts and circumstances of each customer’s arrangements. Evidence of an arrangement consisted of a signed customer agreement. The Company considered that the delivery of its solution had commenced once it provided the customer with log-in information and the term of the contract had started. Fees were fixed based on stated rates specified in the customer agreement. The Company assessed collectability based on several factors, including the credit worthiness of the customer and transaction history. If collectability was not reasonably assured, revenue was deferred until the fees were collected. For arrangements that involve the contemporaneous sale of subscription and professional services, the Company applied the multiple-element arrangement guidance to allocate the arrangement consideration to all deliverables based on their relative selling price. The Company determined that the cloud-based platform subscription has standalone value, because once access is given to the customer, the solutions are fully functional and do not require any additional development, modification, or customization. Professional services have standalone value because they are regularly sold by the Company in separate transactions. Additionally, the performance of these professional services generally does not require highly specialized or technologically skilled individuals and the professional services are not essential to the functionality of the solutions. The Company used a hierarchy to determine the selling price to be used for allocating revenue to deliverables: (i) vendor-specific objective evidence of fair value (‘‘VSOE’’); (ii) third-party evidence of selling price (‘‘TPE’’); and (iii) best estimate of selling price (‘‘BESP’’). BESP reflected the Company’s best estimates of what the selling prices of elements would be if they were sold regularly on a stand-alone basis. The Company’s process for determining BESP involved management’s judgment and considered numerous factors including the nature of the deliverables themselves and historical discounting practices. The Company updated its estimates of BESP on an ongoing basis as events and circumstances required. |
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 | Advertising All advertising costs are expensed as incurred and are included in sales and marketing expense in the condensed consolidated statements of operations. The Company incurred $1.1 million and $0.5 million of advertising costs during the three months ended April 30, 2019 and April 30, 2018, respectively. |
Stock Based Compensation | Stock-Based Compensation The Company accounts for stock-based awards granted to employees and directors based on the awards’ estimated grant date fair value. The Company estimates the fair value of its stock options using the Black-Scholes option-pricing model. The resulting fair value is 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. The Company accounts for forfeitures as they occur. Prior to the Company’s adoption of ASU 2018-07, stock-based awards issued to non-employees were accounted for at fair value determined by using the Black-Scholes option-pricing model. The Company believes that the fair value of the stock options is more reliably measured than the fair value of the services received. The fair value of each non-employee stock-based award is remeasured each period until a commitment date is reached, which is generally the vesting date. The Company early adopted ASU 2018-07 on February 1, 2019 and began accounting for stock-based awards issued to non-employees the same as it accounts for stock-based awards issued to employees. The effect on the Company’s condensed consolidated financial statements for the three months ended April 30, 2019 was not material. Restricted stock units ("RSUs") granted under the 2011 Plan are subject to a service-based vesting condition and a performance-based vesting condition. The service-based vesting condition is generally satisfied based on one of three 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 beginning on December 20, 2018, subject to continued service, or (iii) vesting in eight equal quarterly installments beginning on December 20, 2022, subject to continued service. The performance-based vesting condition is satisfied on the earlier of (i) a change in control, in which the consideration paid to holders of shares is either cash, publicly traded securities, or a combination thereof, or (ii) the first Company vest date to occur following the expiration of the lock-up period upon an IPO, subject to continued service through such change in control or lock-up expiration, as applicable. None of the RSUs vest unless the performance-based vesting condition is satisfied. As of April 30, 2019 the performance based vesting condition had not yet been met, and thus no stock-based compensation relating to these RSUs was recognized. In the quarter in which the performance-based vesting condition is met, the Company will begin recording stock-based compensation expense using the accelerated attribution method based on the grant date fair value of the RSUs. As of April 30, 2019, the total amount of stock-based compensation expense deferred related to this performance-based vesting condition was approximately $13.0 million. |
Business Combinations | Business Combinations The Company allocates the fair value of purchase consideration to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired users, acquired technology, trade names from a market participant perspective, useful lives and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which 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 condensed 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. The Company performs the impairment testing by first assessing qualitative factors 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 reporting unit is less than its carrying amount. The Company has one reporting unit. If, after assessing the totality of events or circumstances, the Company determines it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company performs the first step of a two-step analysis by comparing the book value of net assets to the fair value of the reporting unit. To calculate any potential impairment, the Company compares the fair value of a reporting unit with its carrying amount, including goodwill. Any excess of the carrying amount of the reporting unit’s goodwill over its fair value is recognized as an impairment loss, and the carrying value of goodwill is written down. 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. No impairment was recorded during the three months ended April 30, 2019 or April 30, 2018. The change in goodwill balance during the three months ended April 30, 2019 and April 30, 2018 was due to changes in foreign currency exchange rates. Acquired intangible assets consisting of identifiable intangible assets, were comprised of developed technology, customer relationships, and non-compete agreements resulting from acquisitions. Acquired intangible assets are recorded at fair value on the date of acquisition and amortized over their estimated economic lives following the pattern in which the economic benefits of the assets will be consumed which is on a straight-line basis. Acquired intangible assets are presented net of accumulated amortization on the condensed consolidated balance sheets. The Company reviews the carrying amounts of intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. The Company measures the recoverability of intangible assets by comparing the carrying amount of each asset to the future undiscounted cash flows it expects the asset to generate. If the Company considers any of these assets to be impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair value. In addition, the Company periodically evaluates the estimated remaining useful lives of long-lived assets to determine whether events or changes in circumstances warrant a revision to the remaining period of depreciation or amortization. |
Leases | Leases The Company leases its office space under various noncancelable operating lease agreements and recognizes related rent expense on a straight-line basis over the term of the lease. Certain lease agreements contain rent holidays, scheduled rent increases, lease incentives, and renewal options. Rent holidays and scheduled rent increases are included in the determination of rent expense to be recorded over the lease term. Lease incentives are recognized as a reduction of rent expense on a straight-line basis over the term of the lease. Renewals are not assumed in the determination of the lease term unless they are deemed to be reasonably assured at the inception of the lease. The Company begins to recognize rent expense on the date that the Company obtains the legal right to use and control the leased space. |
Foreign Currency Translation | Foreign Currency Translation 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’ 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 condensed consolidated statements of operations within other 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 records an income tax liability, if any, for the difference between the benefit recognized and measured and the tax position taken or expected to be taken on the Company’s tax returns. To the extent that the assessment of such tax positions changes, the change in estimate is recorded in the period in which the determination is made. The liability is adjusted considering changing facts and circumstances, such as the outcome of a tax audit. The provision for income taxes includes the impact of liability provisions and changes to the liability that are considered appropriate. As the Company maintained a full valuation allowance against its deferred tax assets, the changes resulted in no additional tax expense during the three months ended April 30, 2019 or April 30, 2018. As of April 30, 2019, the Company does not expect that changes in the liability for unrecognized tax benefits for the next twelve months will have a material impact on its condensed consolidated financial statements. |
Sales Taxes | Sales Taxes When sales and other taxes are billed, such amounts are recorded as accounts receivable with a corresponding increase to other current liabilities, respectively. The balances are then removed from the condensed consolidated balance sheet as cash is collected from the customer and as remitted to the respective tax authority. |
Segment and Geographic Information | Segment and Geographic Information The 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. The Company presents financial information about its geographic areas in Note 12 to the condensed consolidated financial statements. |
Net Loss per Share | Net Loss per Share Basic and diluted net loss per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. The Company considers all series of its redeemable convertible preferred stock to be participating securities. Net income is attributed to common stockholders and participating securities based on their participation rights. Net loss attributable to common stockholders is not allocated to the redeemable convertible preferred stock as the holders of the redeemable convertible preferred stock do not have a contractual obligation to share in any losses. 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 stock options and redeemable convertible preferred stock. As the Company has reported losses for all periods presented, all potentially dilutive securities including redeemable convertible preferred stock, stock options, and warrants, are antidilutive and accordingly, basic net loss per share equals diluted net loss per share. |
Recently Issued and Recently Adopted Accounting Pronouncements | Recently Issued Accounting Pronouncements Under the JOBS Act, the Company meets the definition of an emerging growth company. The Company has elected to use the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act. In February 2016, the FASB issued ASU No. 2016-02, Leases Codification Improvements to Topic 842 to the core provisions or principles of the new standard. In July 2018, the FASB also issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement Fair Value Measurement In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract ( Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients Technical Corrections and Improvements to Topic 606 as the “new revenue guidance.” On February 1, 2019, the company adopted ASU No. 2014-09 using the modified retrospective transition method. Under this method, results for reporting periods beginning on February 1, 2019 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historical accounting under Topic 605. The Company recorded a cumulative effect adjustment to opening accumulated deficit of $23.4 million, net of tax, as of the date of adoption. The change resulted from a $23.7 million reduction in commissions expense that we capitalized under Topic 606, but would have been recognized during the period as commissions expense under our historical accounting practices under Topic 605 and a $0.3 million reduction in revenue that would have been recognized during the period under Topic 605. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Summary of Significant Accounting Policies | |
Summary of estimated useful lives of the assets | Data center and other computer equipment 3 – 5 years Furniture and equipment 5 years Purchased software 3 – 5 years Capitalized internal-use software 3 years Leasehold improvements Estimated useful life or term of the lease, whichever is shorter |
Summary of the effect of the adoption of Topic 606 on the Company's select line items included in the condensed consolidated financial statements | April 30, 2019 January 31, 2019 As Reported Impact of Without Adoption As Reported (ASC 606) Adoption (ASC 605) (ASC 605) (in thousands) Condensed Consolidated Balance Sheet Assets: Deferred contract acquisition costs, current $ 26,193 $ 1,815 $ 28,008 $ 28,847 Deferred contract acquisition costs, noncurrent 38,004 (30,337) 7,667 9,918 Liabilities: Accrued expenses 31,185 (555) 30,630 32,541 Deferred revenue, current 244,271 (250) 244,021 218,700 Deferred revenue, noncurrent 70,941 — 70,941 71,367 Stockholders' Equity: Accumulated deficit (521,685) (27,717) (549,402) (519,126) Three Months Ended April 30, 2019 Three Months Ended April 30, 2018 As Reported Impacts of Without Adoption As Reported (ASC 606) Adoption (ASC 605) (ASC 605) (in thousands) Condensed Consolidated Statement of Operations Revenue $ 96,077 $ (83) $ 95,994 $ 47,289 Operating expenses: Sales and marketing 56,843 4,216 61,059 36,617 Net loss (25,977) (4,299) (30,276) (33,617) Net loss per share, basic and diluted $ (0.55) $ (0.64) $ (0.77) |
Fair Value Measurements and M_2
Fair Value Measurements and Marketable Securities (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Fair Value Measurements and Marketable Securities | |
Schedule of Company's fair value hierarchy for its financial assets and liabilities that are measured at fair value on a recurring basis | April 30, 2019 January 31, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (in thousands) (in thousands) Assets Cash equivalents (1) Money market funds $ 48,499 $ — $ — $ 48,499 $ 42,132 $ — $ — $ 42,132 Corporate debt securities — 33,861 — 33,861 — 27,941 — 27,941 US treasuries — 5,493 — 5,493 — — Total cash equivalents 48,499 39,354 — 87,853 42,132 27,941 — 70,073 Marketable securities Corporate debt securities — 75,124 — 75,124 — 91,796 — 91,796 US treasuries — 6,942 — 6,942 11,451 — — 11,451 Total marketable securities — 82,066 — 82,066 11,451 91,796 — 103,247 Total assets $ 48,499 $ 121,420 $ — $ 169,919 $ 53,583 $ 119,737 $ — $ 173,320 Liability Contingent consideration related to business combinations (2) — — — — — — $ 474 $ 474 Redeemable convertible preferred stock warrant liability — — 5,704 5,704 — — 4,537 4,537 Total liabilities $ — $ — $ 5,704 $ 5,704 $ — $ — $ 5,011 $ 5,011 (1) Included in “Cash and cash equivalents” on the condensed consolidated balance sheets. (2) The contingent consideration consists of development milestone payments. The fair value of the contingent consideration was estimated by developing the risk-adjusted discounted value as well as discounted probability-weighted expected payments. That measure is based on Level 3 inputs which are significant inputs that are not observable in the market. Key assumptions at the acquisition date included (a) a discount rate range of 3%- 3.02% and (b) three probability-adjusted milestone payments, each $0.2 million. As of January 31, 2019, the first milestone payment of $0.2 million had been made. As of April 30, 2019, the remaining milestones were deemed not probable of being paid and the remaining contingent consideration of $0.5 million was written off to Other income (expense), net. |
Summary of changes in the redeemable convertible preferred stock warrant liability | Three Months Ended April 30, 2019 2018 (in thousands) Balance at beginning of period $ 4,537 $ 961 Adjustment resulting from change in fair value recognized in the consolidated statements of operations 1,167 — Balance at end of period $ 5,704 $ 961 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Balance Sheet Components | |
Summary of prepaid expenses and other current assets | April 30, January 31, 2019 2019 (in thousands) Prepaid expenses $ 16,861 $ 14,390 Prepaid hosting services 4,280 2,915 Other current assets 1,503 1,105 Prepaid expenses and other current assets $ 22,644 $ 18,410 |
Summary of property and equipment, net | April 30, January 31, 2019 2019 (in thousands) Data center and other computer equipment $ 49,526 $ 44,735 Capitalized internal-use software 24,247 22,209 Leasehold improvements 10,075 10,011 Purchased software 1,456 1,460 Furniture and equipment 3,442 2,553 Construction in process 29,147 19,455 117,893 100,423 Less: Accumulated depreciation and amortization (31,544) (26,688) Property and equipment, net $ 86,349 $ 73,735 |
Schedule of total intangible assets, net | Weighted-Average April 30, January 31, Remaining Useful 2019 2019 Life (in thousands) (in months) Developed technology $ 1,250 $ 1,269 17 Customer relationships 617 632 42 Non-compete agreement 123 126 18 1,990 2,027 Less: Accumulated amortization (1,111) (979) Intangible assets, net $ 879 $ 1,048 |
Schedule of estimated aggregate future amortization expense of intangible assets | Total (in thousands) Fiscal 2020 (remaining nine months) $ 332 Fiscal 2021 333 Fiscal 2022 126 Fiscal 2023 88 Fiscal 2024 — Total amortization expense $ 879 |
Summary of accrued expenses | April 30, January 31, 2019 2019 (in thousands) Web hosting services $ 10,621 $ 12,224 Accrued purchases of property and equipment 6,258 7,042 Other vendor expenses 13,081 12,326 Amounts due for employee expenses 1,225 949 Accrued expenses $ 31,185 $ 32,541 |
Summary of accrued payroll and benefits | April 30, January 31, 2019 2019 (in thousands) Accrued payroll and related expenses $ 2,895 $ 4,326 Accrued bonuses 5,223 5,459 Accrued commissions 4,565 9,499 Accrued payroll and benefits $ 12,683 $ 19,284 |
Redeemable Convertible Prefer_2
Redeemable Convertible Preferred Stock (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Redeemable Convertible Preferred Stock | |
Schedule of redeemable convertible preferred stock | The following table summarizes the authorized, issued, and outstanding redeemable convertible preferred stock of the Company as of April 30, 2019: Shares Net Issue Price Shares Issued and Carrying Liquidation Redemption Class per Share Authorized Outstanding Value Preference Value (in thousands, except per share values) Series A-1 $ 0.50000 52,300 52,300 $ 76,325 $ 52,300 $ 823,725 Series B 1.40500 21,523 21,352 44,320 30,000 336,294 Series C 4.52972 22,275 22,077 99,900 100,000 347,713 Series D 5.69153 17,570 17,570 99,845 125,000 276,728 Series D-1 5.69153 5,394 5,394 30,626 30,700 84,956 Series E 16.46136 18,357 12,575 206,896 207,000 207,000 Total 137,419 131,268 557,912 545,000 2,076,416 The following table summarizes the authorized, issued, and outstanding redeemable convertible preferred stock of the Company as of January 31, 2019: Shares Net Issue Price Shares Issued and Carrying Liquidation Redemption Class per Share Authorized Outstanding Value Preference Value (in thousands, except per share values) Series A-1 $ 0.50000 52,300 52,300 $ 76,325 $ 52,300 $ 623,678 Series B 1.40500 21,523 21,352 44,320 30,000 254,623 Series C 4.52972 22,275 22,077 99,900 100,000 263,765 Series D 5.69153 17,570 17,570 99,845 125,000 211,631 Series D-1 5.69153 5,394 5,394 30,626 30,700 64,607 Series E 16.46136 18,357 12,575 206,896 207,000 207,000 Total 137,419 131,268 557,912 545,000 1,625,304 |
Common Stock (Tables)
Common Stock (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Common Stock | |
Schedule of reserved shares of common stock for future issuance | April 30, January 31, 2019 2019 (in thousands) Conversion of Series A-1 redeemable convertible preferred stock 52,300 52,300 Conversion of Series B redeemable convertible preferred stock 21,352 21,352 Conversion of Series C redeemable convertible preferred stock 22,077 22,077 Conversion of Series D redeemable convertible preferred stock 17,570 17,570 Conversion of Series D-1 redeemable convertible preferred stock 5,394 5,394 Conversion of Series E redeemable convertible preferred stock 12,575 12,575 Exercise and conversion of Series B redeemable convertible preferred stock warrants 171 171 Exercise and conversion of Series C redeemable convertible preferred stock warrants 165 165 Stock options issued and outstanding 26,200 26,535 RSUs issued and outstanding 4,753 4,059 Remaining shares available for future issuance under the 2011 Stock Incentive Plan 477 1,540 Total shares of common stock reserved 163,034 163,738 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Stock-Based Compensation | |
Schedule of assumptions used to estimate fair value on date of grant | Three Months Ended April 30, 2019 2018 Expected term (in years) 6.05 6.05 Risk-free interest rate 2.4 % 2.6 % Expected stock price volatility 37.9 % 38.4 % Dividend yield — % — % |
Schedule of stock option activity | Weighted- Average Number of Exercise Price Shares Per Share (in thousands) Options outstanding at January 31, 2019 26,535 $ 3.87 Granted 880 $ 14.65 Exercised (706) $ 2.14 Canceled (509) $ 7.34 Options outstanding at April 30, 2019 26,200 $ 4.21 Options vested and expected to vest at April 30, 2019 26,200 $ 4.21 Options exercisable at April 30, 2019 15,505 $ 2.49 |
Schedule of restricted stock units | Weighted- Average Grant Number of Date Fair Value Shares Per Share (in thousands) RSUs outstanding at January 31, 2019 4,059 $ 12.66 Granted 853 $ 18.32 Vested — $ — Forfeited (159) $ 12.62 RSUs outstanding at April 30, 2019 4,753 $ 13.33 RSUs expected to vest at April 30, 2019 4,753 $ 13.33 |
Schedule of stock-based compensation expense | Three Months Ended April 30, 2019 2018 (in thousands) Cost of revenue $ 368 $ 109 Sales and marketing 1,518 773 Research and development 681 448 General and administrative 1,185 389 Total stock-based compensation expense $ 3,752 $ 1,719 |
Revenue, Deferred Revenue and_2
Revenue, Deferred Revenue and Remaining Performance Obligations (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Revenue, Deferred Revenue and Remaining Performance Obligations | |
Summary of revenue from contracts by type of customer | Three Months Ended April 30, 2019 Amount % Revenue (in thousands, except percentages) Channel Partners $ 64,460 67 % Direct Customers 31,617 33 % Total revenue $ 96,077 100 % |
Summary of revenue by region based on the shipping address of customers | Three Months Ended April 30, 2019 Amount % Revenue (in thousands, except percentages) United States $ 72,307 75 % Europe, Middle East, and Africa 13,414 14 % Asia Pacific 6,230 7 % Other 4,126 4 % Total revenue $ 96,077 100 % |
Summary of changes in deferred revenue | Changes in deferred revenue for the three months ended April 30, 2019 were as follows (in thousands): Carrying Amount Balance as of January 31, 2019 $ 290,067 Additions to deferred revenue 121,222 Recognition of deferred revenue (96,077) Balance as of April 30, 2019 $ 315,212 |
Summary of the activity of deferred contract acquisition costs | Three Months Ended April 30, 2019 (in thousands) Balance, February 1, 2019 $ 63,071 Capitalization of contract acquisition costs 8,471 Amortization of deferred contract acquisition costs (7,345) Balance, April 30, 2019 $ 64,197 Deferred contract acquisition costs, current $ 26,193 Deferred contract acquisition costs, noncurrent 38,004 Total deferred contract acquisition costs $ 64,197 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Commitments and Contingencies | |
Summary of future minimum payments under noncancelable operating leases | Operating Leases (in thousands) Fiscal 2020 (remaining nine months) $ 4,300 Fiscal 2021 5,469 Fiscal 2022 5,229 Fiscal 2023 4,365 Fiscal 2024 3,090 Thereafter 1,712 Total minimum lease payments $ 24,165 |
Summary of noncancelable purchase obligations | Total Commitments (in thousands) Fiscal 2020 (remaining nine months) $ 45,693 Fiscal 2021 72,159 Fiscal 2022 87,183 Fiscal 2023 8,445 Fiscal 2024 7,330 Thereafter 1,540 Total purchase commitments $ 222,350 |
Geographic Information (Tables)
Geographic Information (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Geographic Information | |
Summary by geographic area of company's long lived assets | April 30, January 31, 2019 2019 (in thousands) United States $ 83,533 $ 70,699 International 2,816 3,036 Total property and equipment, net $ 86,349 $ 73,735 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Net Loss Per Share Attributable to Common Stockholders | |
Schedule of computation of basic and diluted net loss per share attributable to common stockholders" | Three Months Ended April 30, 2019 2018 Net loss attributable to common stockholders $ (25,977) $ (33,617) Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 47,205 43,614 Net loss per share attributable to common stockholders, basic and diluted $ (0.55) $ (0.77) |
Summary of potential shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders" | April 30, April 30, 2019 2018 (in thousands) Shares of common stock issuable upon conversion of redeemable convertible preferred stock 131,268 118,693 Shares of common stock issuable upon conversion of redeemable convertible preferred stock warrants 336 336 Shares of common stock subject to repurchase from outstanding stock options 466 844 Shares of common stock issuable from stock options 26,200 24,109 Potential common shares excluded from diluted net loss per share 158,270 143,982 |
Description of Business and B_2
Description of Business and Basis of Presentation (Details) $ / shares in Units, $ in Thousands | Jun. 14, 2019USD ($)$ / sharesshares | Jun. 13, 2019shares | Apr. 30, 2019USD ($) | Jan. 31, 2019USD ($) |
Description of Business and Basis of Presentation | ||||
Proceeds from issuance of redeemable convertible preferred stock | $ 493,000 | |||
Accumulated deficit | $ 521,685 | $ 519,126 | ||
Subsequent Event | Class A common stock | IPO | ||||
Description of Business and Basis of Presentation | ||||
Number of shares issued | shares | 20,700,000 | |||
Public offering price | $ / shares | $ 34 | |||
Net proceeds from issuance of common stock from IPO after deducting underwriters' discounts and commissions and estimated offering expenses | $ 659,100 | |||
Underwriters' discounts and commissions and estimated offering expenses | $ 44,700 | |||
Stock Conversion, Common Stock Conversion Ratio | 1 | |||
Subsequent Event | Class B common stock | IPO | ||||
Description of Business and Basis of Presentation | ||||
Number of shares issued in conversion of common stock | shares | 131,267,586 | |||
Stock Conversion, Preferred Stock Conversion Ratio | 1 | |||
Stock Conversion, Common Stock Conversion Ratio | 1 | |||
Conversion Of Warrants, Warrants Issued | shares | 336,386 | |||
Stock Conversion, Warrants Conversion Ratio | 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Concentration of Credit Risk and Geographic Information (Details) | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2019Distributorcustomer | Apr. 30, 2018Distributor | Jan. 31, 2019customer | |
Channel partners | Accounts receivable | |||
Concentration Risk [Line Items] | |||
Number of distributors | 1 | ||
Concentration risk, percentage | 11.00% | ||
Channel partners | Revenue | |||
Concentration Risk [Line Items] | |||
Number of distributors | 1 | 1 | |
Concentration risk, percentage | 12.00% | 17.00% | |
Customers | Accounts receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 11.00% | ||
Number of customers | customer | 1 | 2 | |
Customers | Accounts receivable | Customer 1 | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | ||
Customers | Accounts receivable | Customer 2 | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 19.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Accounts Receivable and Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | Apr. 30, 2019 | Jan. 31, 2019 |
Accounts Receivable and Allowance for Doubtful Accounts | ||
Allowance for doubtful accounts | $ 0.7 | $ 1 |
Deferred Offering Costs | ||
Deferred offering costs | $ 4 | $ 2.9 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Property and Equipment, Net (Details) - USD ($) | 3 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Jan. 31, 2019 | |
Capitalized Internal Use Software | |||
Impairments of internal use software | $ 0 | $ 0 | |
Capitalized amount of internal use software | 2,000,000 | 1,700,000 | |
Amortization expense associated with internal use software | 1,500,000 | 1,100,000 | |
Net book value of capitalized internal use software | 12,000,000 | $ 11,500,000 | |
Deferred Contract Acquisition Costs | |||
Contract acquisition cost amortization expense | $ 7,300,000 | 5,600,000 | |
Amortization over an estimated period of benefit for commissions, including referral fees paid to channel partner | 4 years | ||
Amortization over an estimated period of benefit for sales commissions associated with professional service contract | 6 months | ||
Capitalization of contract acquisition costs | $ 8,471,000 | 5,000,000 | |
Impairment of Long Lived Assets | |||
Impairment losses of long lived assets | $ 0 | $ 0 | |
Minimum | |||
Intangible Assets, Net | |||
Estimated economic lives | 3 years | ||
Maximum | |||
Intangible Assets, Net | |||
Estimated economic lives | 5 years | ||
Data center and other computer equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 3 years | ||
Data center and other computer equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 5 years | ||
Furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 5 years | ||
Purchased software | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 3 years | ||
Purchased software | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 5 years | ||
Capitalized internal-use software | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 3 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Revenue Recognition - ASC 606 (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Feb. 01, 2019 | Apr. 30, 2019 | Apr. 30, 2018 | Jan. 31, 2019 |
Assets: | ||||
Deferred contract acquisition costs, current | $ 26,193 | $ 28,847 | ||
Deferred contract acquisition costs, noncurrent | 38,004 | 9,918 | ||
Liabilities | ||||
Accrued expenses | 31,185 | 32,541 | ||
Deferred revenue, current | 244,271 | 218,700 | ||
Deferred revenue, noncurrent | 70,941 | 71,367 | ||
Stockholders' Equity: | ||||
Accumulated deficit | (521,685) | $ (519,126) | ||
Condensed Consolidated Statement of Operations | ||||
Total revenue | 96,077 | $ 47,289 | ||
Operating expenses | ||||
Sales and marketing | 56,843 | 36,617 | ||
Net loss | $ (25,977) | $ (33,617) | ||
Net loss per share, basic and diluted | $ (0.55) | $ (0.77) | ||
Weighted average common shares outstanding, basic and diluted | 47,205 | 43,614 | ||
ASC 2014-09 | ||||
Revenue Recognition - ASC 606 | ||||
Cumulative effect adjustment to opening accumulated deficit, net of tax | $ 23,400 | |||
Reduction in the amortization of deferred contract acquisition costs | 23,700 | |||
Reduction in revenue | $ 300 | |||
ASC 2014-09 | Impact of adoption | ||||
Assets: | ||||
Deferred contract acquisition costs, current | $ 1,815 | |||
Deferred contract acquisition costs, noncurrent | (30,337) | |||
Liabilities | ||||
Accrued expenses | (555) | |||
Deferred revenue, current | (250) | |||
Stockholders' Equity: | ||||
Accumulated deficit | (27,717) | |||
Condensed Consolidated Statement of Operations | ||||
Total revenue | (83) | |||
Operating expenses | ||||
Sales and marketing | 4,216 | |||
Net loss | (4,299) | |||
ASC 2014-09 | Without adoption (ASC 605) | ||||
Assets: | ||||
Deferred contract acquisition costs, current | 28,008 | |||
Deferred contract acquisition costs, noncurrent | 7,667 | |||
Liabilities | ||||
Accrued expenses | 30,630 | |||
Deferred revenue, current | 244,021 | |||
Deferred revenue, noncurrent | 70,941 | |||
Stockholders' Equity: | ||||
Accumulated deficit | (549,402) | |||
Condensed Consolidated Statement of Operations | ||||
Total revenue | 95,994 | |||
Operating expenses | ||||
Sales and marketing | 61,059 | |||
Net loss | $ (30,276) | |||
Net loss per share, basic and diluted | $ (0.64) |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Stock-Based Compensation (Details) | 1 Months Ended | 3 Months Ended | |
Sep. 30, 2018installmenttranche | Apr. 30, 2019USD ($)segmentinstallmenttrancheitem | Apr. 30, 2018USD ($) | |
Advertising | |||
Advertising costs | $ 1,100,000 | $ 500,000 | |
Stock Based Compensation | |||
Vesting period | 4 years | ||
Total stock-based compensation expense | $ 3,752,000 | 1,719,000 | |
Number of reporting units | item | 1 | ||
Goodwill impairment | $ 0 | $ 0 | |
Segment and Geographic Information | |||
Number of operating segments | 1 | ||
Number of reportable segments | segment | 1 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-05-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Subscription term | 12 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-05-01 | Minimum | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Subscription term | 1 year | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-05-01 | Maximum | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Subscription term | 3 years | ||
RSUs | |||
Stock Based Compensation | |||
Total stock-based compensation expense | $ 0 | ||
Stock-based compensation expense deferred | $ 13,000,000 | ||
Service-based vesting | |||
Stock Based Compensation | |||
Number of vesting schedules | tranche | 3 | 3 | |
Performance-based vesting | |||
Stock Based Compensation | |||
Total stock-based compensation expense | $ 0 | ||
Stock-based compensation expense deferred | $ 13,000,000 | ||
Vesting two | Service-based vesting | |||
Stock Based Compensation | |||
Number of quarterly installments | installment | 16 | 16 | |
Vesting three | Service-based vesting | |||
Stock Based Compensation | |||
Number of quarterly installments | installment | 8 | 8 | |
On first Company vest date | Vesting one | Service-based vesting | |||
Stock Based Compensation | |||
Vesting percentage | 25.00% | ||
On or following one year anniversary | Vesting one | Service-based vesting | |||
Stock Based Compensation | |||
Number of quarterly installments | installment | 12 | 12 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Recently Issued Accounting Pronouncements (Details) - ASC 2014-09 $ in Millions | Feb. 01, 2019USD ($) |
Recently Adopted Accounting Pronouncements | |
Cumulative effect adjustment to opening accumulated deficit, net of tax | $ 23.4 |
Reduction in the amortization of deferred contract acquisition costs | 23.7 |
Reduction in revenue | $ 0.3 |
Fair Value Measurements and M_3
Fair Value Measurements and Marketable Securities (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2019USD ($)item | Jan. 31, 2019USD ($) | Apr. 30, 2018USD ($) | |
Assets | |||
Marketable securities | $ 82,066 | $ 103,247 | |
Liability | |||
Number of probability adjusted milestone payments | item | 3 | ||
Probability adjusted milestone payment amount | $ 200 | ||
First milestone payment | 200 | ||
Fair value assets transfer, level 1 to 2 | 0 | $ 0 | |
Fair value assets transfer, level 2 to 1 | 0 | 0 | |
Fair value liabilities transfer, level 1 to 2 | 0 | 0 | |
Fair value liabilities transfer, level 2 to 1 | $ 0 | $ 0 | |
Remaining contractual maturities of marketable securities | 1 year | ||
Write-off of contingent consideration | $ 500 | ||
Discount rate | Minimum | |||
Liability | |||
Business combination, measurement input | 3 | ||
Discount rate | Maximum | |||
Liability | |||
Business combination, measurement input | 3.02 | ||
Recurring | |||
Assets | |||
Total cash equivalents | $ 87,853 | 70,073 | |
Marketable securities | 82,066 | 103,247 | |
Total assets | 169,919 | 173,320 | |
Liability | |||
Contingent consideration related to business combinations | 474 | ||
Redeemable convertible preferred stock warrant liability | 5,704 | 4,537 | |
Total liabilities | 5,704 | 5,011 | |
Recurring | Money market funds | |||
Assets | |||
Total cash equivalents | 48,499 | 42,132 | |
Recurring | Corporate debt securities | |||
Assets | |||
Total cash equivalents | 33,861 | 27,941 | |
Marketable securities | 75,124 | 91,796 | |
Recurring | US treasuries | |||
Assets | |||
Total cash equivalents | 5,493 | ||
Marketable securities | 6,942 | 11,451 | |
Level 1 | Recurring | |||
Assets | |||
Total cash equivalents | 48,499 | 42,132 | |
Marketable securities | 11,451 | ||
Total assets | 48,499 | 53,583 | |
Level 1 | Recurring | Money market funds | |||
Assets | |||
Total cash equivalents | 48,499 | 42,132 | |
Level 1 | Recurring | US treasuries | |||
Assets | |||
Marketable securities | 11,451 | ||
Level 2 | Recurring | |||
Assets | |||
Total cash equivalents | 39,354 | 27,941 | |
Marketable securities | 82,066 | 91,796 | |
Total assets | 121,420 | 119,737 | |
Level 2 | Recurring | Corporate debt securities | |||
Assets | |||
Total cash equivalents | 33,861 | 27,941 | |
Marketable securities | 75,124 | 91,796 | |
Level 2 | Recurring | US treasuries | |||
Assets | |||
Total cash equivalents | 5,493 | ||
Marketable securities | 6,942 | ||
Level 3 | Recurring | |||
Liability | |||
Contingent consideration related to business combinations | 474 | ||
Redeemable convertible preferred stock warrant liability | 5,704 | 4,537 | |
Total liabilities | $ 5,704 | $ 5,011 |
Fair Value Measurements and M_4
Fair Value Measurements and Marketable Securities - Redeemable convertible preferred stock warrant liability (Details) - Level 3 - Redeemable convertible preferred stock warrant - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Summary of changes in the redeemable convertible preferred stock warrant liability | ||
Balance at beginning of period | $ 4,537 | $ 961 |
Adjustment resulting from change in fair value recognized in the consolidated statements of operations | 1,167 | 0 |
Balance at end of period | $ 5,704 | $ 961 |
Fair Value, Recurring Basis, Unobservable Input Reconciliation, Liability, Gain (Loss), Statement of Income [Extensible List] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Balance Sheet Components - Prep
Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | Jan. 31, 2019 |
Prepaid Expenses and Other Current Assets | ||
Prepaid expenses | $ 16,861 | $ 14,390 |
Prepaid hosting services | 4,280 | 2,915 |
Other current assets | 1,503 | 1,105 |
Prepaid expenses and other current assets | $ 22,644 | $ 18,410 |
Balance Sheet Components - Prop
Balance Sheet Components - Property and Equipment, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Jan. 31, 2019 | |
Property and Equipment, Net | |||
Property, Plant and Equipment, Gross | $ 117,893 | $ 100,423 | |
Less: Accumulated depreciation and amortization | (31,544) | (26,688) | |
Total property and equipment, net | 86,349 | 73,735 | |
Purchases | 28,500 | ||
Depreciation and amortization | 4,873 | $ 2,983 | |
Data center and other computer equipment | |||
Property and Equipment, Net | |||
Property, Plant and Equipment, Gross | 49,526 | 44,735 | |
Capitalized internal-use software | |||
Property and Equipment, Net | |||
Property, Plant and Equipment, Gross | 24,247 | 22,209 | |
Leasehold improvements | |||
Property and Equipment, Net | |||
Property, Plant and Equipment, Gross | 10,075 | 10,011 | |
Purchased software | |||
Property and Equipment, Net | |||
Property, Plant and Equipment, Gross | 1,456 | 1,460 | |
Furniture And Equipment | |||
Property and Equipment, Net | |||
Property, Plant and Equipment, Gross | 3,442 | 2,553 | |
Construction in process | |||
Property and Equipment, Net | |||
Property, Plant and Equipment, Gross | $ 29,147 | $ 19,455 |
Balance Sheet Components - Inta
Balance Sheet Components - Intangible Assets, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | Jan. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | $ 1,990 | $ 2,027 | |
Less: Accumulated amortization | (1,111) | (979) | |
Intangible assets, net | 879 | 1,048 | |
Amortization of intangible assets | 146 | $ 166 | |
Aggregate future amortization expense | |||
Fiscal 2020 (remaining nine months) | 332 | ||
Fiscal 2021 | 333 | ||
Fiscal 2022 | 126 | ||
Fiscal 2023 | 88 | ||
Intangible assets, net | 879 | 1,048 | |
Developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | $ 1,250 | $ 1,269 | |
Weighted-Average Remaining Useful life | 17 months | 17 months | |
Aggregate future amortization expense | |||
Useful lives | 3 years | ||
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | $ 617 | $ 632 | |
Weighted-Average Remaining Useful life | 42 months | 42 months | |
Aggregate future amortization expense | |||
Useful lives | 5 years | ||
Non-compete agreement | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | $ 123 | $ 126 | |
Weighted-Average Remaining Useful life | 18 months | 18 months | |
Aggregate future amortization expense | |||
Useful lives | 3 years |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Expenses (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | Jan. 31, 2019 |
Accrued Expenses | ||
Web hosting services | $ 10,621 | $ 12,224 |
Accrued purchases of property and equipment | 6,258 | 7,042 |
Other vendor expenses | 13,081 | 12,326 |
Amounts due for employee expenses | 1,225 | 949 |
Accrued expenses | 31,185 | 32,541 |
Accrued Payroll and Benefits | ||
Accrued payroll and related expenses | 2,895 | 4,326 |
Accrued bonuses | 5,223 | 5,459 |
Accrued commissions | 4,565 | 9,499 |
Accrued payroll and benefits | $ 12,683 | $ 19,284 |
Secured Revolving Credit Faci_2
Secured Revolving Credit Facility (Details) | 1 Months Ended | |
Apr. 30, 2019USD ($)item | Jan. 31, 2019USD ($) | |
Minimum | ||
Letters of Credit | ||
Commitment fee (as a percent) | 0.20% | |
Maximum | ||
Letters of Credit | ||
Commitment fee (as a percent) | 0.30% | |
Revolving line of credit | ||
Letters of Credit | ||
Maximum borrowing capacity | $ 150,000,000 | |
Incremental borrowing facility | $ 75,000,000 | |
Borrowing facility multiple factor - first year | item | 6 | |
Borrowing facility multiple factor - second year | item | 5 | |
Borrowing facility multiple factor - thereafter | $ 4 | |
Amount outstanding | 0 | $ 0 |
Letter of credit | ||
Letters of Credit | ||
Maximum borrowing capacity | 10,000,000 | |
Swingline | ||
Letters of Credit | ||
Maximum borrowing capacity | $ 10,000,000 | |
Eurodollar Loans and ABR Loans | ||
Letters of Credit | ||
Applicable margin reduction (as a percent) | 0.25% | |
Gross proceeds | $ 100,000,000 | |
Eurodollar Loans | LIBOR | Minimum | ||
Letters of Credit | ||
Margin (as a percent) | 2.75% | |
Eurodollar Loans | LIBOR | Maximum | ||
Letters of Credit | ||
Margin (as a percent) | 3.25% | |
ABR Loans | Federal funds rate | ||
Letters of Credit | ||
Margin (as a percent) | 0.50% | |
ABR Loans | Eurodollar Rate | ||
Letters of Credit | ||
Margin (as a percent) | 1.00% | |
ABR Loans | Eurodollar Rate | Minimum | ||
Letters of Credit | ||
Margin (as a percent) | 1.75% | |
ABR Loans | Eurodollar Rate | Maximum | ||
Letters of Credit | ||
Margin (as a percent) | 2.25% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Income Taxes | ||
Income tax expense | $ 595 | $ 121 |
Effective tax rate (as a percent) | (2.30%) | (0.40%) |
Redeemable Convertible Prefer_3
Redeemable Convertible Preferred Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Apr. 30, 2019 | Jan. 31, 2019 |
Redeemable Convertible Preferred Stock | ||
Shares Authorized (in shares) | 137,419 | 137,419 |
Shares Issued (in shares) | 131,268 | 131,268 |
Shares Outstanding (in shares) | 131,268 | 131,268 |
Net Carrying Value | $ 557,912 | $ 557,912 |
Liquidation Preference | 545,000 | 545,000 |
Redemption Value | $ 2,076,416 | $ 1,625,304 |
Series A-1 | ||
Redeemable Convertible Preferred Stock | ||
Issue Price per Share (in dollars per share) | $ 0.50000 | $ 0.50000 |
Shares Authorized (in shares) | 52,300 | 52,300 |
Shares Issued (in shares) | 52,300 | 52,300 |
Shares Outstanding (in shares) | 52,300 | 52,300 |
Net Carrying Value | $ 76,325 | $ 76,325 |
Liquidation Preference | 52,300 | 52,300 |
Redemption Value | $ 823,725 | $ 623,678 |
Series B | ||
Redeemable Convertible Preferred Stock | ||
Issue Price per Share (in dollars per share) | $ 1.40500 | $ 1.40500 |
Shares Authorized (in shares) | 21,523 | 21,523 |
Shares Issued (in shares) | 21,352 | 21,352 |
Shares Outstanding (in shares) | 21,352 | 21,352 |
Net Carrying Value | $ 44,320 | $ 44,320 |
Liquidation Preference | 30,000 | 30,000 |
Redemption Value | $ 336,294 | $ 254,623 |
Series C | ||
Redeemable Convertible Preferred Stock | ||
Issue Price per Share (in dollars per share) | $ 4.52972 | $ 4.52972 |
Shares Authorized (in shares) | 22,275 | 22,275 |
Shares Issued (in shares) | 22,077 | 22,077 |
Shares Outstanding (in shares) | 22,077 | 22,077 |
Net Carrying Value | $ 99,900 | $ 99,900 |
Liquidation Preference | 100,000 | 100,000 |
Redemption Value | $ 347,713 | $ 263,765 |
Series D | ||
Redeemable Convertible Preferred Stock | ||
Issue Price per Share (in dollars per share) | $ 5.69153 | $ 5.69153 |
Shares Authorized (in shares) | 17,570 | 17,570 |
Shares Issued (in shares) | 17,570 | 17,570 |
Shares Outstanding (in shares) | 17,570 | 17,570 |
Net Carrying Value | $ 99,845 | $ 99,845 |
Liquidation Preference | 125,000 | 125,000 |
Redemption Value | $ 276,728 | $ 211,631 |
Series D-1 | ||
Redeemable Convertible Preferred Stock | ||
Issue Price per Share (in dollars per share) | $ 5.69153 | $ 5.69153 |
Shares Authorized (in shares) | 5,394 | 5,394 |
Shares Issued (in shares) | 5,394 | 5,394 |
Shares Outstanding (in shares) | 5,394 | 5,394 |
Net Carrying Value | $ 30,626 | $ 30,626 |
Liquidation Preference | 30,700 | 30,700 |
Redemption Value | $ 84,956 | $ 64,607 |
Series E | ||
Redeemable Convertible Preferred Stock | ||
Issue Price per Share (in dollars per share) | $ 16.46136 | $ 16.46136 |
Shares Authorized (in shares) | 18,357 | 18,357 |
Shares Issued (in shares) | 12,575 | 12,575 |
Shares Outstanding (in shares) | 12,575 | 12,575 |
Net Carrying Value | $ 206,896 | $ 206,896 |
Liquidation Preference | 207,000 | 207,000 |
Redemption Value | $ 207,000 | $ 207,000 |
Redeemable Convertible Prefer_4
Redeemable Convertible Preferred Stock - Conversion (Details) - IPO - Subsequent Event - Redeemable Convertible Preferred Stock $ in Millions | Jun. 14, 2019USD ($)shares |
Redeemable Convertible Preferred Stock | |
Number of shares converted | shares | 131,267,586 |
Stock Conversion, Preferred Stock Conversion Ratio | 1 |
Value of converted shares | $ | $ 557.9 |
Common Stock (Details)
Common Stock (Details) - $ / shares | Apr. 30, 2019 | Jan. 31, 2019 |
Common Stock | ||
Common stock, shares authorized (in shares) | 220,000,000 | 220,000,000 |
Common stock, par value (in dollars per share) | $ 0.0005 | $ 0.0005 |
Common Stock - Reserved for fut
Common Stock - Reserved for future issuance (Details) - shares shares in Thousands | Apr. 30, 2019 | Jan. 31, 2019 |
Class of Stock [Line Items] | ||
Total shares of common stock reserved | 163,034 | 163,738 |
2011 Stock Incentive Plan | ||
Class of Stock [Line Items] | ||
Total shares of common stock reserved | 477 | 1,540 |
Stock options | ||
Class of Stock [Line Items] | ||
Total shares of common stock reserved | 26,200 | 26,535 |
RSUs | ||
Class of Stock [Line Items] | ||
Total shares of common stock reserved | 4,753 | 4,059 |
Exercise and conversion of Series B redeemable convertible preferred stock warrants | ||
Class of Stock [Line Items] | ||
Total shares of common stock reserved | 171 | 171 |
Exercise and conversion of Series C redeemable convertible preferred stock warrants | ||
Class of Stock [Line Items] | ||
Total shares of common stock reserved | 165 | 165 |
Series A-1 | ||
Class of Stock [Line Items] | ||
Total shares of common stock reserved | 52,300 | 52,300 |
Series B | ||
Class of Stock [Line Items] | ||
Total shares of common stock reserved | 21,352 | 21,352 |
Series C | ||
Class of Stock [Line Items] | ||
Total shares of common stock reserved | 22,077 | 22,077 |
Series D | ||
Class of Stock [Line Items] | ||
Total shares of common stock reserved | 17,570 | 17,570 |
Series D-1 | ||
Class of Stock [Line Items] | ||
Total shares of common stock reserved | 5,394 | 5,394 |
Series E | ||
Class of Stock [Line Items] | ||
Total shares of common stock reserved | 12,575 | 12,575 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Incentive Plan (Details) - shares | Apr. 30, 2019 | Jan. 31, 2019 |
2011 Stock Incentive Plan | ||
Stock Based Compensation | ||
Maximum number of shares of common stock that may be issued | 79,498,016 | 79,498,016 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock options - Assumptions (Details) - Stock options | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Assumptions | ||
Expected term (in years) | 6 years 18 days | 6 years 18 days |
Risk-free interest rate | 2.40% | 2.60% |
Expected stock price volatility | 37.90% | 38.40% |
Stock-Based Compensation - St_3
Stock-Based Compensation - Stock options - Summary (Details) - Stock options shares in Thousands | 3 Months Ended |
Apr. 30, 2019$ / sharesshares | |
Number of Shares | |
Options outstanding at beginning of period (in shares) | shares | 26,535 |
Granted (in shares) | shares | 880 |
Exercised (in shares) | shares | (706) |
Canceled (in shares) | shares | (509) |
Options outstanding at end of period (in shares) | shares | 26,200 |
Options vested and expected to vest at end of period (in shares) | shares | 26,200 |
Options exercisable at end of period (in shares) | shares | 15,505 |
Weighted-Average Exercise Price Per Share | |
Options outstanding at beginning of period (in dollars per share) | $ / shares | $ 3.87 |
Granted (in dollars per share) | $ / shares | 14.65 |
Exercised (in dollars per share) | $ / shares | 2.14 |
Canceled (in dollars per share) | $ / shares | 7.34 |
Options outstanding at end of period (in dollars per share) | $ / shares | 4.21 |
Options vested and expected to vest at end of period (in dollars per share) | $ / shares | 4.21 |
Options exercisable at end of period (in dollars per share) | $ / shares | $ 2.49 |
Stock-Based Compensation - St_4
Stock-Based Compensation - Stock options - other details (Details) - Stock options - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | Jan. 31, 2019 | |
Stock Based Compensation | |||
Options unvested (in shares) | 2,291,556 | ||
Aggregate intrinsic value of options vested and exercisable | $ 188.5 | $ 181.1 | |
Weighted-average remaining contractual term of options vested and exercisable (in years) | 6 years 10 months 24 days | 7 years 1 month 6 days | |
Weighted-average grant date fair value of options granted (in dollars per share) | $ 8.76 | $ 5.44 | |
Total intrinsic value of options exercised | $ 8.8 | $ 1 | |
Total fair value of options vested | 4.2 | 0.9 | |
Aggregate intrinsic value of stock options outstanding | $ 273.6 | $ 286.1 | |
Weighted-average remaining contractual term of stock options outstanding (in years) | 7 years 8 months 12 days | 7 years 10 months 24 days | |
Total unrecognized stock-based compensation expenses related to unvested options | $ 47.2 | $ 45.8 | |
Expected to be amortized over weighted-average vesting period (in years) | 3 years 3 months 18 days | 3 years 4 months 24 days |
Stock-Based Compensation - Earl
Stock-Based Compensation - Early Exercise of Employee Options (Details) - Stock options - USD ($) $ in Millions | Apr. 30, 2019 | Jan. 31, 2019 |
Stock Based Compensation | ||
Number of shares of common stock related to early exercised stock options subject to repurchase | 465,626 | 545,941 |
Value of common stock related to early exercised stock options subject to repurchase | $ 1 | $ 1.2 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Sep. 30, 2018installmenttranche | Apr. 30, 2019USD ($)installmenttranche | Apr. 30, 2018USD ($) | |
Stock Based Compensation | |||
Total stock-based compensation expense | $ 3,752 | $ 1,719 | |
RSUs | |||
Stock Based Compensation | |||
Total stock-based compensation expense | 0 | ||
Stock-based compensation expense deferred | $ 13,000 | ||
Service-based vesting | |||
Stock Based Compensation | |||
Number of vesting schedules | tranche | 3 | 3 | |
Performance-based vesting | |||
Stock Based Compensation | |||
Total stock-based compensation expense | $ 0 | ||
Stock-based compensation expense deferred | $ 13,000 | ||
Vesting one | Service-based vesting | On first Company vest date | |||
Stock Based Compensation | |||
Vesting percentage | 25.00% | ||
Vesting one | Service-based vesting | On or following one year anniversary | |||
Stock Based Compensation | |||
Number of quarterly installments | installment | 12 | 12 | |
Vesting two | Service-based vesting | |||
Stock Based Compensation | |||
Number of quarterly installments | installment | 16 | 16 | |
Vesting three | Service-based vesting | |||
Stock Based Compensation | |||
Number of quarterly installments | installment | 8 | 8 |
Stock-Based Compensation - RSU
Stock-Based Compensation - RSU activity (Details) - RSUs | 3 Months Ended |
Apr. 30, 2019$ / sharesshares | |
Number of Shares | |
RSUs outstanding at beginning of period (in shares) | shares | 4,059,000 |
Granted (in shares) | shares | 853,000 |
Forfeited (in shares) | shares | (159,000) |
RSUs outstanding at end of period (in shares) | shares | 4,753,005 |
RSUs expected to vest at end of period (in shares) | shares | 4,753,000 |
Weighted-Average Grant Date Fair Value Per Share | |
RSUs outstanding at beginning of period (in dollars per share) | $ / shares | $ 12.66 |
Granted (in dollars per share) | $ / shares | 18.32 |
Forfeited (in dollars per share) | $ / shares | 12.62 |
RSUs outstanding at end of period (in dollars per share) | $ / shares | 13.33 |
RSUs expected to vest at end of period (in dollars per share) | $ / shares | $ 13.33 |
Stock-Based Compensation - Expe
Stock-Based Compensation - Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | $ 3,752 | $ 1,719 |
Cost of revenue | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | 368 | 109 |
Sales and marketing | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | 1,518 | 773 |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | 681 | 448 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | $ 1,185 | $ 389 |
Revenue, Deferred Revenue and_3
Revenue, Deferred Revenue and Remaining Performance Obligations - Revenue from contracts type of customer and Region based on shipping address of customers (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 96,077 | $ 47,289 |
Percentage of revenue | 100.00% | |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 72,307 | |
Percentage of revenue | 75.00% | |
Europe, Middle East, and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 13,414 | |
Percentage of revenue | 14.00% | |
Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 6,230 | |
Percentage of revenue | 7.00% | |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 4,126 | |
Percentage of revenue | 4.00% | |
Channel partners | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 64,460 | |
Percentage of revenue | 67.00% | |
Direct customers | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 31,617 | |
Percentage of revenue | 33.00% |
Revenue, Deferred Revenue and_4
Revenue, Deferred Revenue and Remaining Performance Obligations (Details) $ in Thousands | 3 Months Ended |
Apr. 30, 2019USD ($) | |
Contract with Customer, Liability [Line Items] | |
Revenue included in the contract liability balance | $ 79,900 |
Changes in deferred revenue | |
Balance, beginning | 290,067 |
Additions to deferred revenue | 121,222 |
Recognition of deferred revenue | (96,077) |
Balance, ending | 315,212 |
Transaction price allocated to remaining performance obligations | $ 386,000 |
Amortization over an estimated period of benefit for commissions, including referral fees paid to channel partner | 4 years |
Amortization over an estimated period of benefit for sales commissions associated with professional service contract | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-05-01 | |
Changes in deferred revenue | |
Subscription term | 12 months |
Percentage of performance obligation expected to be recognized | 69.00% |
Transaction price recognition period | 12 months |
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-05-01 | |
Changes in deferred revenue | |
Subscription term | 1 year |
Transaction price recognition period | 1 year |
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-05-01 | |
Changes in deferred revenue | |
Subscription term | 3 years |
Transaction price recognition period | 3 years |
Revenue, Deferred Revenue and_5
Revenue, Deferred Revenue and Remaining Performance Obligations - Deferred contract acquisition costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2019 | Jan. 31, 2019 | |
Deferred contract acquisition costs | ||||
Balance, beginning | $ 63,071 | |||
Capitalization of contract acquisition costs | 8,471 | $ 5,000 | ||
Amortization of deferred contract acquisition costs | (7,345) | |||
Balance, ending | 64,197 | |||
Deferred contract acquisition costs, current | $ 26,193 | $ 28,847 | ||
Deferred contract acquisition costs, noncurrent | 38,004 | 9,918 | ||
Total deferred contract acquisition costs | $ 63,071 | $ 64,197 | $ 63,071 |
Commitments and Contingencies -
Commitments and Contingencies - Lease Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Aggregate future minimum payments under noncancelable operating leases | ||
Fiscal 2020 (remaining nine months) | $ 4,300 | |
Fiscal 2021 | 5,469 | |
Fiscal 2022 | 5,229 | |
Fiscal 2023 | 4,365 | |
Fiscal 2024 | 3,090 | |
Thereafter | 1,712 | |
Total minimum lease payments | 24,165 | |
Rent expense | $ 1,800 | $ 1,500 |
Commitments and Contingencies_2
Commitments and Contingencies - Purchase Obligations (Details) $ in Thousands | Apr. 30, 2019USD ($) |
Purchase Obligations | |
Commitment to spend | $ 207,400 |
Noncancelable purchase obligations | |
Fiscal 2020 (remaining nine months) | 45,693 |
Fiscal 2021 | 72,159 |
Fiscal 2022 | 87,183 |
Fiscal 2023 | 8,445 |
Fiscal 2024 | 7,330 |
Thereafter | 1,540 |
Total purchase commitments | $ 222,350 |
Commitments and Contingencies_3
Commitments and Contingencies - Letters of Credit (Details) - USD ($) $ in Millions | Apr. 30, 2019 | Jan. 31, 2019 |
Sunnyvale, California | ||
Letters of Credit | ||
Unused standby letter of credit | $ 0.5 | $ 0.5 |
Austin, Texas | ||
Letters of Credit | ||
Unused standby letter of credit | $ 0.8 | $ 0.8 |
Commitments and Contingencies_4
Commitments and Contingencies - Litigation (Details) - USD ($) $ in Millions | Apr. 30, 2019 | Jan. 31, 2019 |
Litigation | ||
Liability recorded | $ 0 | $ 0 |
Warranties and Indemnification | ||
Liabilities have been accrued associated with this indemnification provision | $ 0 | $ 0 |
Geographic Information (Details
Geographic Information (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | Jan. 31, 2019 |
Geographic Information | ||
Total property and equipment, net | $ 86,349 | $ 73,735 |
United States | ||
Geographic Information | ||
Total property and equipment, net | 83,533 | 70,699 |
International | ||
Geographic Information | ||
Total property and equipment, net | $ 2,816 | $ 3,036 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Jan. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Revenue from subscriptions and professional services from related parties | $ 2.3 | $ 1.4 | |
Accounts receivable associated with related parties | 0.3 | $ 0.2 | |
Purchases from related parties | 0.6 | $ 0.4 | |
Maximum | |||
Related Party Transaction [Line Items] | |||
Accounts payable to vendors | $ 0.1 | $ 0.1 |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Net Loss Per Share Attributable to Common Stockholders | ||
Net loss attributable to common stockholders | $ (25,977) | $ (33,617) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 47,205 | 43,614 |
Net loss per share attributable to common stockholders, basic and diluted | $ (0.55) | $ (0.77) |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Common Stockholders - Antidilutive (Details) - shares | 3 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Jan. 31, 2019 | |
Computation of diluted net loss per share attributable to common stockholders | |||
Potential common shares excluded from diluted net loss per share | 158,270,000 | 143,982,000 | |
Redeemable Convertible Preferred Stock | |||
Computation of diluted net loss per share attributable to common stockholders | |||
Potential common shares excluded from diluted net loss per share | 131,268,000 | 118,693,000 | |
Redeemable convertible preferred stock warrant | |||
Computation of diluted net loss per share attributable to common stockholders | |||
Potential common shares excluded from diluted net loss per share | 336,000 | 336,000 | |
Shares of common stock subject to repurchase from outstanding stock options | |||
Computation of diluted net loss per share attributable to common stockholders | |||
Potential common shares excluded from diluted net loss per share | 466,000 | 844,000 | |
Stock options | |||
Computation of diluted net loss per share attributable to common stockholders | |||
Potential common shares excluded from diluted net loss per share | 26,200,000 | 24,109,000 | |
RSUs | |||
Computation of diluted net loss per share attributable to common stockholders | |||
RSUs outstanding | 4,753,005 | 0 | 4,059,000 |
Subsequent Events - Initial Pub
Subsequent Events - Initial Public Offering (Details) $ / shares in Units, $ in Millions | Jun. 14, 2019USD ($)Vote$ / sharesshares | Jun. 13, 2019shares | Apr. 30, 2019USD ($)$ / sharesshares | Jan. 31, 2019USD ($)$ / sharesshares |
Subsequent Events | ||||
Common stock, shares authorized (in shares) | 220,000,000 | 220,000,000 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0005 | $ 0.0005 | ||
Deferred offering costs | $ | $ 4 | $ 2.9 | ||
Subsequent Event | IPO | ||||
Subsequent Events | ||||
Preferred stock, shares authorized (in shares) | 100,000,000 | |||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0005 | |||
Subsequent Event | IPO | Class A common stock | ||||
Subsequent Events | ||||
Number of shares issued | 20,700,000 | |||
Share Price | $ / shares | $ 34 | |||
Net proceeds from issuance of common stock from IPO after deducting underwriters' discounts and commissions and estimated offering expenses | $ | $ 659.1 | |||
Underwriters' discounts and commissions and estimated offering expenses | $ | $ 44.7 | |||
Common stock conversion ratio | 1 | |||
Common stock, shares authorized (in shares) | 2,000,000,000 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0005 | |||
Number of votes per share | Vote | 1 | |||
Subsequent Event | IPO | Class B common stock | ||||
Subsequent Events | ||||
Number of shares issued in conversion of common stock | 131,267,586 | |||
Preferred stock conversion ratio | 1 | |||
Common stock conversion ratio | 1 | |||
Warrants issued on conversion | 336,386 | |||
Warrants conversion ratio | 1 | |||
Common stock, shares authorized (in shares) | 300,000,000 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0005 | |||
Number of votes per share | Vote | 10 |
Subsequent Events - RSU Expense
Subsequent Events - RSU Expense & 2019 Equity Incentive Plan (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |
May 31, 2019itemshares | Apr. 30, 2019USD ($)$ / sharesshares | Apr. 30, 2018USD ($) | |
Subsequent Event [Line Items] | |||
Proceeds from issuance of common stock upon exercise of stock options | $ | $ 1,510 | $ 751 | |
Stock options | |||
Subsequent Event [Line Items] | |||
Granted (in shares) | 880,000 | ||
Granted (in dollars per share) | $ / shares | $ 14.65 | ||
RSUs | |||
Subsequent Event [Line Items] | |||
Stock-based compensation expense deferred | $ | $ 13,000 | ||
Granted (in shares) | 853,000 | ||
Subsequent Event | 2019 Equity Incentive Plan | Class A common stock | |||
Subsequent Event [Line Items] | |||
Maximum number of shares of common stock that may be issued | 8,750,000 | ||
Threshold percentage of outstanding shares | 2.00% | ||
Subsequent Event | Employee Stock Purchase Plan | |||
Subsequent Event [Line Items] | |||
Threshold percentage of outstanding shares | 1.00% | ||
Offering period | 24 months | ||
Number of purchase periods | item | 4 | ||
Duration of purchase periods | 6 months | ||
Percentage of eligible compensation | 15.00% | ||
Maximum number of shares each participant can purchase during purchase period | 2,500 | ||
Purchase price, threshold percentage of fair market value | 85.00% | ||
Subsequent Event | Employee Stock Purchase Plan | Class A common stock | |||
Subsequent Event [Line Items] | |||
Maximum number of shares of common stock that may be issued | 3,500,000 |