Cover Page
Cover Page - shares | 9 Months Ended | |
Oct. 31, 2021 | Dec. 06, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-38856 | |
Entity Registrant Name | PAGERDUTY, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-2793871 | |
Entity Address, Address Line One | 600 Townsend St. | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94103 | |
City Area Code | 844 | |
Local Phone Number | 800-3889 | |
Title of 12(b) Security | Common Stock, $0.000005 par value | |
Trading Symbol | PD | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 85,980,013 | |
Entity Central Index Key | 0001568100 | |
Current Fiscal Year End Date | --01-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 31, 2021 | Jan. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 359,738 | $ 339,166 |
Investments | 185,545 | 221,112 |
Accounts receivable, net of allowance for doubtful accounts of $1,218 and $1,188 as of October 31, 2021 and January 31, 2021, respectively | 53,965 | 55,119 |
Deferred contract costs, current | 15,075 | 12,330 |
Prepaid expenses and other current assets | 11,833 | 10,587 |
Total current assets | 626,156 | 638,314 |
Property and equipment, net | 14,625 | 12,639 |
Deferred contract costs, non-current | 22,703 | 19,257 |
Lease right-of-use assets | 21,360 | 24,691 |
Goodwill | 72,126 | 72,126 |
Intangible assets, net | 24,008 | 26,633 |
Other assets | 1,108 | 1,783 |
Total assets | 782,086 | 795,443 |
Current liabilities: | ||
Accounts payable | 9,564 | 5,747 |
Accrued expenses and other current liabilities | 11,167 | 9,627 |
Accrued compensation | 32,253 | 28,372 |
Deferred revenue, current | 137,353 | 123,686 |
Lease liabilities, current | 5,554 | 5,262 |
Total current liabilities | 195,891 | 172,694 |
Convertible senior notes, net | 280,615 | 217,528 |
Deferred revenue, non-current | 5,497 | 6,286 |
Lease liabilities, non-current | 22,438 | 26,542 |
Other liabilities | 4,256 | 5,666 |
Total liabilities | 508,697 | 428,716 |
Commitments and contingencies (Note 11) | ||
Stockholders’ equity: | ||
Common stock | 0 | 0 |
Additional paid-in capital | 593,508 | 614,494 |
Accumulated other comprehensive (loss) income | (191) | 343 |
Accumulated deficit | (319,928) | (248,110) |
Total stockholders’ equity | 273,389 | 366,727 |
Total liabilities and stockholders’ equity | $ 782,086 | $ 795,443 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Oct. 31, 2021 | Jan. 31, 2021 |
Current assets: | ||
Allowance for doubtful accounts | $ 1,218 | $ 1,188 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Income Statement And Statement Of Comprehensive Income [Abstract] | ||||
Revenue | $ 71,760 | $ 53,772 | $ 202,887 | $ 154,272 |
Cost of revenue | 12,039 | 7,685 | 34,433 | 21,285 |
Gross profit | 59,721 | 46,087 | 168,454 | 132,987 |
Operating expenses: | ||||
Research and development | 24,554 | 16,156 | 68,062 | 46,705 |
Sales and marketing | 40,176 | 34,024 | 118,224 | 88,271 |
General and administrative | 19,808 | 17,746 | 56,680 | 45,899 |
Total operating expenses | 84,538 | 67,926 | 242,966 | 180,875 |
Loss from operations | (24,817) | (21,839) | (74,512) | (47,888) |
Interest income | 705 | 974 | 2,306 | 3,375 |
Interest expense | (1,350) | (4,133) | (4,045) | (5,741) |
Other expense, net | (729) | (449) | (1,931) | (861) |
Loss before (provision for) benefit from income taxes | (26,191) | (25,447) | (78,182) | (51,115) |
(Provision for) benefit from income taxes | (150) | 4,839 | (378) | 4,360 |
Net loss | (26,341) | (20,608) | (78,560) | (46,755) |
Other comprehensive (loss) income: | ||||
Unrealized (loss) gain on investments | (222) | (422) | (534) | 497 |
Total comprehensive loss | $ (26,563) | $ (21,030) | $ (79,094) | $ (46,258) |
Net loss per share, basic (in dollars per share) | $ (0.31) | $ (0.26) | $ (0.94) | $ (0.59) |
Net loss per share, diluted (in dollars per share) | $ (0.31) | $ (0.26) | $ (0.94) | $ (0.59) |
Weighted average shares used in calculating net loss per share, basic (in shares) | 85,092 | 79,937 | 83,979 | 78,835 |
Weighted average shares used in calculating net loss per share, diluted (in shares) | 85,092 | 79,937 | 83,979 | 78,835 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Additional Paid-in CapitalCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment |
Beginning balance (in shares) at Jan. 31, 2020 | 77,793,540 | |||||||
Beginning balance at Jan. 31, 2020 | $ 307,938 | $ 0 | $ 487,008 | $ 137 | $ (179,207) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock upon exercise of stock options and restricted stock agreements, net of repurchases (in shares) | 2,069,446 | |||||||
Issuance of common stock upon exercise of stock options and restricted stock agreements | 9,709 | 9,709 | ||||||
Vesting of restricted stock units, net of employee payroll taxes (in shares) | 240,116 | |||||||
Vesting of restricted stock units, net of employee payroll taxes | (4,334) | (4,334) | ||||||
Vesting of early exercised options | 507 | 507 | ||||||
Equity component of convertible senior notes, net of issuance costs | 68,478 | 68,478 | ||||||
Purchases of capped calls related to convertible senior notes | (35,708) | (35,708) | ||||||
Shares issued related to a business combination (in shares) | 1,499,651 | |||||||
Shares issued related to a business combination | 38,875 | 38,875 | ||||||
Issuance of common stock in connection with employee stock purchase plan (in shares) | 181,253 | |||||||
Issuance of common stock in connection with employee stock purchase plan | 3,558 | 3,558 | ||||||
Other comprehensive income (loss) | 497 | 497 | ||||||
Stock-based compensation | 31,793 | 31,793 | ||||||
Net loss | (46,755) | (46,755) | ||||||
Ending balance (in shares) at Oct. 31, 2020 | 81,784,006 | |||||||
Ending balance at Oct. 31, 2020 | 374,558 | $ 0 | 599,886 | 634 | (225,962) | |||
Beginning balance (in shares) at Jan. 31, 2020 | 77,793,540 | |||||||
Beginning balance at Jan. 31, 2020 | 307,938 | $ 0 | 487,008 | 137 | (179,207) | |||
Ending balance (in shares) at Jan. 31, 2021 | 82,882,424 | |||||||
Ending balance at Jan. 31, 2021 | $ 366,727 | $ (61,736) | $ 0 | 614,494 | $ (68,478) | 343 | (248,110) | $ 6,742 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2020-06 | |||||||
Beginning balance (in shares) at Jul. 31, 2020 | 79,355,627 | |||||||
Beginning balance at Jul. 31, 2020 | $ 341,871 | $ 0 | 546,169 | 1,056 | (205,354) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock upon exercise of stock options and restricted stock agreements, net of repurchases (in shares) | 782,554 | |||||||
Issuance of common stock upon exercise of stock options and restricted stock agreements | 3,938 | 3,938 | ||||||
Vesting of restricted stock units, net of employee payroll taxes (in shares) | 146,174 | |||||||
Vesting of restricted stock units, net of employee payroll taxes | (2,591) | (2,591) | ||||||
Shares issued related to a business combination (in shares) | 1,499,651 | |||||||
Shares issued related to a business combination | 38,875 | 38,875 | ||||||
Other comprehensive income (loss) | (422) | (422) | ||||||
Stock-based compensation | 13,495 | 13,495 | ||||||
Net loss | (20,608) | (20,608) | ||||||
Ending balance (in shares) at Oct. 31, 2020 | 81,784,006 | |||||||
Ending balance at Oct. 31, 2020 | 374,558 | $ 0 | 599,886 | 634 | (225,962) | |||
Beginning balance (in shares) at Jan. 31, 2021 | 82,882,424 | |||||||
Beginning balance at Jan. 31, 2021 | 366,727 | $ (61,736) | $ 0 | 614,494 | $ (68,478) | 343 | (248,110) | $ 6,742 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock upon exercise of stock options and restricted stock agreements, net of repurchases (in shares) | 2,010,991 | |||||||
Issuance of common stock upon exercise of stock options and restricted stock agreements | 12,508 | 12,508 | ||||||
Vesting of restricted stock units, net of employee payroll taxes (in shares) | 677,323 | |||||||
Vesting of restricted stock units, net of employee payroll taxes | (18,619) | (18,619) | ||||||
Shares issued related to a business combination (in shares) | 2,073 | |||||||
Issuance of common stock in connection with employee stock purchase plan (in shares) | 222,474 | |||||||
Issuance of common stock in connection with employee stock purchase plan | 4,889 | 4,889 | ||||||
Other comprehensive income (loss) | (534) | (534) | ||||||
Stock-based compensation | 48,714 | 48,714 | ||||||
Net loss | (78,560) | (78,560) | ||||||
Ending balance (in shares) at Oct. 31, 2021 | 85,795,285 | |||||||
Ending balance at Oct. 31, 2021 | 273,389 | $ 0 | 593,508 | (191) | (319,928) | |||
Beginning balance (in shares) at Jul. 31, 2021 | 84,801,124 | |||||||
Beginning balance at Jul. 31, 2021 | 285,172 | $ 0 | 578,728 | 31 | (293,587) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock upon exercise of stock options and restricted stock agreements, net of repurchases (in shares) | 724,725 | |||||||
Issuance of common stock upon exercise of stock options and restricted stock agreements | 4,286 | 4,286 | ||||||
Vesting of restricted stock units, net of employee payroll taxes (in shares) | 269,436 | |||||||
Vesting of restricted stock units, net of employee payroll taxes | (7,616) | (7,616) | ||||||
Other comprehensive income (loss) | (222) | (222) | ||||||
Stock-based compensation | 18,110 | 18,110 | ||||||
Net loss | (26,341) | (26,341) | ||||||
Ending balance (in shares) at Oct. 31, 2021 | 85,795,285 | |||||||
Ending balance at Oct. 31, 2021 | $ 273,389 | $ 0 | $ 593,508 | $ (191) | $ (319,928) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | ||
Cash flows from operating activities | |||
Net loss | $ (78,560) | $ (46,755) | |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 6,160 | 3,352 | |
Amortization of deferred contract costs | 10,651 | 7,894 | |
Amortization of debt discount and issuance costs | [1] | 1,350 | 4,493 |
Stock-based compensation | 47,866 | 31,735 | |
Non-cash lease expense | 3,331 | 3,299 | |
Other | 2,592 | 1,897 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 360 | (3,879) | |
Deferred contract costs | (16,842) | (10,944) | |
Prepaid expenses and other assets | (857) | (3,605) | |
Accounts payable | 3,836 | (210) | |
Accrued expenses and other liabilities | (79) | 2,224 | |
Accrued compensation | 3,760 | 7,689 | |
Deferred revenue | 12,878 | 12,475 | |
Lease liabilities | (3,812) | (2,959) | |
Net cash (used in) provided by operating activities | (7,366) | 6,706 | |
Cash flows from investing activities | |||
Purchases of property and equipment | (1,376) | (3,402) | |
Capitalization of internal-use software costs | (2,701) | (328) | |
Business acquisitions, net of cash acquired | (160) | (49,656) | |
Proceeds from maturities of held-to-maturity investments | 0 | 28,040 | |
Purchases of available-for-sale investments | (150,608) | (153,254) | |
Proceeds from maturities of available-for-sale investments | 156,616 | 123,352 | |
Proceeds from sales of available-for-sale investments | 27,380 | 9,285 | |
Net cash provided by (used in) investing activities | 29,151 | (45,963) | |
Cash flows from financing activities | |||
Proceeds from issuance of convertible senior notes, net of issuance costs paid of $8,835 | 0 | 278,665 | |
Purchases of capped calls related to convertible senior notes | 0 | (35,708) | |
Proceeds from employee stock purchase plan | 4,889 | 3,558 | |
Proceeds from issuance of common stock upon exercise of stock options | 12,517 | 9,709 | |
Employee payroll taxes paid related to net share settlement of restricted stock units | (18,619) | (4,334) | |
Net cash (used in) provided by financing activities | (1,213) | 251,890 | |
Net increase in cash, cash equivalents, and restricted cash | 20,572 | 212,633 | |
Cash, cash equivalents, and restricted cash at beginning of period | 339,166 | 124,024 | |
Cash, cash equivalents, and restricted cash at end of period | 359,738 | 336,657 | |
Supplemental cash flow data: | |||
Cash paid for income taxes | 126 | 0 | |
Cash paid for interest | 1,797 | 0 | |
Non-cash investing and financing activities: | |||
Vesting of early exercised options | 0 | 507 | |
Purchase of property and equipment, accrued but not yet paid | 823 | 274 | |
Costs related to issuance of convertible senior notes, accrued but not yet paid | 0 | 470 | |
Stock-based compensation capitalized in internal use software | 848 | 0 | |
Bonuses capitalized in internal use software | $ 121 | $ 0 | |
[1] | During the first quarter of fiscal 2022, the Company early adopted ASU 2020-06 which resulted in the elimination of amortization of debt discount on our 1.25% Convertible Senior Notes (the “Notes”) from February 1, 2021. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands | 9 Months Ended |
Oct. 31, 2020USD ($) | |
Issuance of convertible senior notes, issuance costs paid | $ 8,835 |
Description of Business and Bas
Description of Business and Basis of Presentation | 9 Months Ended |
Oct. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Description of Business PagerDuty, Inc. was incorporated under the laws of the state of Delaware in May 2010. PagerDuty acts as the central nervous system for the digital enterprise. PagerDuty harnesses digital signals from virtually any software-enabled system or device, combines it with human response data and orchestrates teams to take the right actions in real time. The Company’s products help organizations improve operations, accelerate innovation, increase revenue, mitigate security risk, and deliver a great customer experience. As used herein, “PagerDuty”, “we”, “our”, “the Company” and similar terms include PagerDuty, Inc., unless the context indicates otherwise. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated balance sheet as of January 31, 2021 was derived from the audited consolidated financial statements as of that date but does not include all of the information and notes required by GAAP for complete financial statements. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these 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, 2021, included in the Company’s Annual Report on Form 10-K, filed with the SEC. The condensed consolidated financial statements include the results of PagerDuty, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. In the opinion of management, the information contained herein reflects all adjustments necessary for a fair presentation of the Company’s financial position, results of operations and comprehensive loss, statements of stockholders’ equity, and cash flows. The results of operations for the three and nine months ended October 31, 2021 are not necessarily indicative of the results to be expected for the full year ending January 31, 2022 or for any other interim period, or for any future year. The Company’s fiscal year ends on January 31. References to fiscal 2022, for example, refer to the fiscal year ending January 31, 2022. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make, on an ongoing basis, estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. The Company’s most significant estimates and judgments involve the fair value of stock awards, period of benefit for amortizing deferred contract costs, the determination of the allowance for doubtful accounts, the provision for income taxes, including the related valuation allowance and any uncertain tax positions, fair value of acquired assets and assumed liabilities, impairment of goodwill and intangible assets, the incremental borrowing rate for lease liabilities, and estimates related to our revenue recognition, such as the assessment of performance obligations in our revenue arrangements and the fair value assigned to each performance obligation, among others. Management bases its estimates on historical experience and on various other assumptions which management believes to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. In December 2019, the novel coronavirus and resulting disease (“COVID-19”) was reported and in March 2020 the World Health Organization declared it a pandemic. The Company considered the impact of COVID-19 on the assumptions and estimates used and determined that there were no material adverse impacts on the condensed consolidated financial statements during the three and nine months ended October 31, 2021 and 2020. As events continue to evolve and additional information becomes available, our assumptions and estimates may change materially in future periods. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Concentrations of Risk and Significant Customers The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, available-for-sale investments, and accounts receivable. All of the Company’s cash and cash equivalents and investments are invested in money market funds, U.S. Treasury securities, commercial paper, corporate debt securities, or U.S. Government agency securities that management believes to be of high credit quality. No single customer accounted for 10% of the total accounts receivable balance as of October 31, 2021 or January 31, 2021. No single customer represented 10% or more of revenue for the three and nine months ended October 31, 2021 or 2020. Segment Information The Company manages its operations and allocates resources as one operating segment. The Company’s chief operating decision maker (“CODM”) is its chief executive officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources. Refer to Note 16, “Geographic Information” for information regarding the Company's long-lived assets and revenue by geography. Related Party Transactions Certain members of the Company’s Board of Directors serve as directors of, or are executive officers of, and in some cases are investors in, companies that are customers or vendors of the Company. The Company recognized $1.1 million of revenues associated with related parties during the nine months ended October 31, 2021 and billed $2.2 million to entities associated with related parties during the nine months ended October 31, 2021. Other related party transactions were not material for the three and nine months ended October 31, 2021 and 2020. Significant Accounting Policies There have been no significant changes to our significant accounting policies as compared to those described in our Annual Report on Form 10-K for the fiscal year ended January 31, 2021, other than as set forth below. Stock-Based Compensation The Company recognizes compensation expense for all stock-based payment awards, including stock options, restricted stock units (“RSUs”), and performance stock units (“PSUs”), based on the estimated fair value of the award on the grant date. The Company estimates the fair value of stock options issued to employees on the date of grant using the Black-Scholes option pricing model, which is impacted by the estimated fair value of the Company’s common stock, as well as certain assumptions including the expected volatility over the term of the option awards, the expected term of the awards, risk-free interest rates and the expected dividend yield. Assumptions and estimates used in the determination of the fair value of stock options are as follows: Expected volatility —Expected volatility is a measure of the amount by which the stock price is expected to fluctuate. Since the Company does not have sufficient trading history for its common stock, it estimates the expected volatility of its stock options by taking the average historical volatility of a group of comparable publicly traded companies over a period equal to the expected life of the options. Expected term —The Company determines the expected term based on the average period the stock options are expected to remain outstanding, generally calculated as the midpoint of the stock options’ vesting term and contractual expiration period, as the Company does not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior. Risk-free rate —The Company uses the U.S. Treasury yield for its risk-free interest rate that corresponds with the expected term. Expected dividend yield —The Company utilizes a dividend yield of zero, as it does not currently issue dividends and does not expect to in the future. The Company estimates the fair value of RSUs and PSUs at our stock price on the grant date. The Company estimates the fair value of shares to be issued under the employee stock purchase plan (the “ESPP”) on the first day of the offering period using the Black-Scholes valuation model, which is impacted by the estimated fair value of the Company’s common stock, as well as certain assumptions including the expected volatility over the term of the offering period, the expected term of the awards, risk-free interest rates and the expected dividend yield. Assumptions used in the determination of the fair value of the ESPP are the same as those used in the determination of the fair value of our stock options. The Company generally recognizes compensation expense for employee stock-based payment awards on a straight-line basis over the period during which an award recipient is required to provide services in exchange for the award (generally the vesting period of the award), with the exception of PSUs which are recognized using the accelerated attribution method. The Company accounts for forfeitures as they occur. The fair value of each non-employee stock option is estimated at the date of grant using the Black-Scholes option pricing model and is not remeasured over the vesting term. Assumptions used in valuing non-employee stock options are generally consistent with those used for employee stock options with the exception that the expected term is over the contractual life. Recently Adopted Accounting Pronouncements In August 2020, the FASB issued Accounting Standard Update No. 2020-06 (“ASU 2020-06”), Debt—Debt with Conversion Options (“Subtopic 470-20”) and Derivatives and Hedging—Contracts in Entity’s Own Equity (“Subtopic 815-40”) , which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity's own equity. ASU 2020-06 also improves and amends the related Earnings Per Share guidance for both Subtopics. The ASU is part of the FASB's simplification initiative, which aims to reduce unnecessary complexity in U.S. GAAP. The Company early adopted ASU 2020-06 as of February 1, 2021 using the modified retrospective approach. As a result of the adoption of ASU 2020-06, the Convertible Notes due July 2025 (the “Notes”) are no longer bifurcated into separate liability and equity components in the October 31, 2021 condensed consolidated balance sheets. Rather, the $287.5 million principal amount of the Company’s Convertible Notes was classified only as a liability in the October 31, 2021 condensed consolidated balance sheets. Upon adoption, the Company recognized an increase to long-term debt of $61.7 million, a decrease to additional paid in capital of $68.5 million, and a decrease in accumulated deficit of $6.7 million on its condensed consolidated balance sheets as of February 1, 2021. The adoption did not affect the Company’s condensed consolidated statements of operations or condensed consolidated statements of cash flows. Refer to Note 10, “Debt and Financing Arrangements” for further information. As of January 31, 2021 ASU 2020-06 Adoption Adjustment As of February 1, 2021 (in thousands) Liabilities Outstanding principal $ 287,500 $ — $ 287,500 Unamortized debt discount and issuance costs (69,972) 61,736 (8,236) Net carrying amount $ 217,528 $ 61,736 $ 279,264 Equity Additional paid-in-capital $ (614,494) $ 68,478 $ (546,016) Accumulated deficit (248,110) 6,742 (241,368) Recently Issued Accounting Pronouncements In October 2021, the FASB issued Accounting Standard Update No. 2021-08 (“ASU 2021-08”), Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which requires that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606 (Revenue from Contracts with Customers). At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. The ASU is part of the FASB's simplification initiative, which aims to reduce unnecessary complexity in U.S. GAAP. ASU 2021-08 will be effective for annual reporting periods beginning after December 15, 2022. Early adoption is permitted, including adoption in an interim period. The adoption of the standard will impact future business combinations and require the Company to measure acquired contract assets and liabilities in accordance with ASC 606. The Company does not expect the adoption of ASU 2021-08 to have a material impact on the consolidated financial statements. |
Cash, Cash Equivalents, and Inv
Cash, Cash Equivalents, and Investments | 9 Months Ended |
Oct. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Cash, Cash Equivalents, and Investments | Cash, Cash Equivalents, and Investments Cash, cash equivalents, and investments consisted of the following: As of October 31, 2021 As of January 31, 2021 (in thousands) Cash and cash equivalents Cash $ 297,777 $ 184,308 Money market funds 59,961 139,870 Commercial paper 2,000 — U.S. Treasury securities — 14,988 Total cash and cash equivalents $ 359,738 $ 339,166 Available-for-sale investments: U.S. Treasury securities $ 39,217 $ 45,026 Commercial paper 39,778 34,598 Corporate debt securities 106,550 141,488 Total available-for-sale investments $ 185,545 $ 221,112 The following tables summarize the Company’s investments’ adjusted cost, net unrealized gains (losses), and fair value by significant investment category as of October 31, 2021 and January 31, 2021. Gross realized gains or losses from sales of available-for-sale securities were not material for the three and nine months ended October 31, 2021. As of October 31, 2021 Cost Basis Unrealized Loss, Net Recorded Basis (in thousands) Available-for-sale investments: U.S. Treasury securities $ 39,221 $ (4) $ 39,217 Commercial paper 39,791 (13) 39,778 Corporate debt securities 106,724 (174) 106,550 Total available-for-sale investments $ 185,736 $ (191) $ 185,545 As of January 31, 2021 Cost Basis Unrealized Gain (Loss), Net Recorded Basis (in thousands) Available-for-sale investments: U.S. Treasury securities $ 45,023 $ 3 $ 45,026 Commercial paper 34,607 (9) 34,598 Corporate debt securities 141,139 349 141,488 Total available-for-sale investments $ 220,769 $ 343 $ 221,112 The following tables present the Company’s available-for-sale securities by contractual maturity date as of October 31, 2021 and January 31, 2021: As of October 31, 2021 Cost Basis Recorded Basis (in thousands) Due within one year $ 145,249 $ 145,192 Due between one to five years 40,487 40,353 Total $ 185,736 $ 185,545 As of January 31, 2021 Cost Basis Recorded Basis (in thousands) Due within one year $ 171,498 $ 171,837 Due between one to five years 49,271 49,275 Total $ 220,769 $ 221,112 As of October 31, 2021, there were 65 available-for-sale securities in an unrealized loss position, one of which was in a continuous unrealized loss position for the last 12 months. The total unrealized loss related to these securities was $0.2 million. Unrealized losses for securities that were in an unrealized loss position as of January 31, 2021 were not material. When evaluating investments for impairment, the Company reviews factors such as the extent to which fair value has been below cost basis, the financial condition of the issuer and any changes thereto, and the Company’s |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company measures its financial assets and liabilities at fair value each reporting period using a fair value hierarchy that prioritizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value, as follows: Level 1—Valuations based on observable inputs that reflect quoted prices for identical assets or liabilities in active markets. Level 2—Valuations based on inputs that are directly or indirectly observable in the marketplace. Level 3—Valuations based on unobservable inputs that are supported by little or no market activity. The following tables present information about the Company’s financial assets that are required to be measured or disclosed at fair value using the above input categories: As of October 31, 2021 Level 1 Level 2 Level 3 Total (in thousands) Money market funds $ 59,961 $ — $ — $ 59,961 U.S. Treasury securities — 39,217 — 39,217 Commercial paper 2,000 39,778 — 41,778 Corporate debt securities — 106,550 — 106,550 Total $ 61,961 $ 185,545 $ — $ 247,506 Included in cash equivalents $ 61,961 Included in investments $ 185,545 As of January 31, 2021 Level 1 Level 2 Level 3 Total (in thousands) Money market funds $ 139,870 $ — $ — $ 139,870 U.S. Treasury securities 14,988 45,026 — 60,014 Commercial paper — 34,598 — 34,598 Corporate debt securities — 141,488 — 141,488 Total $ 154,858 $ 221,112 $ — $ 375,970 Included in cash equivalents $ 154,858 Included in investments $ 221,112 The Company’s assets that are measured by management at fair value on a recurring basis are generally classified within Level 1 or Level 2 of the fair value hierarchy. The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. As of October 31, 2021 and January 31, 2021, the Company’s Level 2 securities were priced by pricing vendors. These pricing vendors utilize observable market information in pricing these securities or, if specific prices are not available for these securities, use other observable inputs like market transactions involving identical or comparable securities. The carrying amounts of certain financial instruments, including cash held in banks, accounts receivable, and accounts payable approximate fair value due to their short-term maturities and are excluded from the fair value table above. Convertible Senior Notes As of October 31, 2021, the estimated fair value of the Notes was approximately $369.3 million. The fair value was determined based on the quoted price for the Notes in an inactive market on the last trading day of the reporting period and is considered as Level 2 in the fair value hierarchy. |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets | 9 Months Ended |
Oct. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Acquired Intangible Assets | Goodwill and Acquired Intangible Assets There have been no changes in the carrying amount of goodwill since January 31, 2021. Acquired intangible assets subject to amortization as of October 31, 2021 were as follows: Cost Accumulated Amortization Net Weighted Average (in thousands) (in years) Customer relationships $ 21,800 $ (2,362) $ 19,438 8.9 Developed technology 5,600 (1,213) 4,387 3.9 Trademarks 400 (217) 183 0.9 Total acquired intangibles, net $ 27,800 $ (3,792) $ 24,008 |
Business Combinations
Business Combinations | 9 Months Ended |
Oct. 31, 2021 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations On October 1, 2020, the Company completed the acquisition of Rundeck Inc (“Rundeck”), a leading provider of DevOps automation for enterprise. The Company acquired Rundeck for purchase consideration of $95.5 million in a combination of cash and common stock. The acquisition was accounted for as a business combination and the total purchase consideration was allocated to the net tangible and intangible assets and liabilities based on their fair values on the acquisition date and the excess was recorded as goodwill. This resulted in increases of $72.1 million to goodwill, $21.8 million to customer relationships, $5.6 million to developed technology, and $0.4 million to trademarks. From the date of the acquisition, the financial results of Rundeck have been included in and are immaterial to our condensed consolidated financial statements. Pro forma revenue and results of operations have not been presented because the historical results are not material to our condensed consolidated financial statements in any period presented. The Company did not complete any acquisitions in the three and nine months ended October 31, 2021. |
Property and Equipment, Net
Property and Equipment, Net | 9 Months Ended |
Oct. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net, consisted of the following: As of October 31, 2021 As of January 31, 2021 (in thousands) Leasehold improvements $ 13,246 $ 12,767 Computers and equipment 7,425 6,562 Furniture and fixtures 3,040 3,017 Capitalized internal-use software 5,180 1,355 Gross property and equipment (1) 28,891 23,701 Accumulated depreciation and amortization (14,266) (11,062) Property and equipment, net $ 14,625 $ 12,639 (1) Gross property and equipment includes construction-in-progress for leasehold improvements and capitalized internal-use software of $2.7 million and $1.5 million that had not yet been placed in service as of October 31, 2021 and January 31, 2021, respectively. The costs associated with construction-in-progress are not amortized until the asset is available for its intended use. Depreciation and amortization expense was $1.3 million and $1.0 million for the three months ended October 31, 2021 and 2020, respectively, and $3.4 million and $2.9 million for the nine months ended October 31, 2021 and 2020, respectively. |
Deferred Contract Costs
Deferred Contract Costs | 9 Months Ended |
Oct. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Contract Costs | Deferred Contract CostsDeferred contract costs, which primarily consist of deferred sales commissions, were $37.8 million and $31.6 million as of October 31, 2021 and January 31, 2021, respectively. Amortization expense for deferred contract costs was $3.9 million and $2.8 million for the three months ended October 31, 2021 and 2020, respectively, and $10.7 million and $7.9 million for the nine months ended October 31, 2021 and 2020, respectively. There was no impairment charge related to the costs capitalized for the periods presented.Deferred Revenue and Performance Obligations The following table presents the changes to the Company’s deferred revenue: Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 (in thousands) Deferred revenue, beginning of period $ 134,002 $ 101,180 $ 129,972 $ 92,569 Billings 80,608 57,636 215,765 166,747 Deferred revenue assumed in the Rundeck acquisition — 2,680 — 2,680 Revenue recognized (71,760) (53,772) (202,887) (154,272) Deferred revenue, end of period $ 142,850 $ 107,724 $ 142,850 $ 107,724 For the three months ended October 31, 2021 and 2020, the majority of revenue recognized was from the deferred revenue balances at the beginning of each quarter. For the nine months ended October 31, 2021 and 2020, approximately half of revenue recognized was from the deferred revenue balance at the beginning of each period. As of October 31, 2021, future estimated revenue related to performance obligations for cloud-hosted and term-license software subscriptions with terms of more than one year that are unsatisfied or partially unsatisfied at the end of the reporting periods was approximately $123.0 million. The Company expects to satisfy the substantial majority of these unsatisfied performance obligations over the next 24 months and the remainder thereafter. The Company applied the optional exemption for subscriptions with terms of less than one year. |
Leases
Leases | 9 Months Ended |
Oct. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases Operating Leases The Company has entered into various non-cancellable operating leases for its office spaces with lease periods expiring between fiscal 2022 and fiscal 2029. The operating lease agreements generally provide for rental payments on a graduated basis and for options to renew, which could increase future minimum lease payments if exercised. Lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The lease right-of-use assets also include any lease payments made and exclude lease incentives such as tenant improvement allowances. The operating leases typically include non-lease components such as common-area maintenance costs. The Company has elected to include non-lease components with lease payments for the purpose of calculating lease right-of-use assets and liabilities, to the extent that they are fixed. Non-lease components that are not fixed are expensed as incurred as variable lease payments. Leases with a term of one year or less are not recognized on our condensed consolidated balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The following table presents information about leases on the condensed consolidated balance sheet. As of October 31, 2021 As of January 31, 2021 (in thousands) Assets Lease right-of-use assets $ 21,360 $ 24,691 Liabilities Lease liabilities 5,554 5,262 Lease liabilities, non-current 22,438 26,542 As of October 31, 2021, the weighted average remaining lease term was 5.0 years and the weighted average discount rate used to determine the net present value of the lease liabilities was 3.7%. The following table presents information about leases on the condensed consolidated statement of operations. Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 (in thousands) Operating lease expense $ 1,401 $ 1,448 $ 4,173 $ 4,335 Short-term lease expense 304 105 473 665 Variable lease expense 313 335 628 998 The following table presents supplemental cash flow information about the Company’s leases. Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 (in thousands) Cash paid for amounts included in the measurement of lease liabilities $ 1,581 $ 1,524 $ 4,724 $ 3,811 |
Debt and Financing Arrangements
Debt and Financing Arrangements | 9 Months Ended |
Oct. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | Debt and Financing Arrangements Convertible Senior Notes On June 25, 2020, the Company issued $287.5 million in aggregate principal amount of the Notes in a private offering pursuant to an Indenture dated June 25, 2020 (the “Indenture”). The total net proceeds from the debt offering, after deducting initial purchaser discounts and debt issuance costs, paid or payable by us, were $278.2 million. The Notes are senior, unsecured obligations of the Company and accrue interest payable semiannually in arrears on January 1 and July 1 of each year, beginning on January 1, 2021, at a rate of 1.25% per year. The Notes will mature on July 1, 2025, unless such notes are converted, redeemed or repurchased earlier. The Notes are convertible into cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s election in the manner and subject to the terms and conditions provided in the Indenture. Holders of the Notes may convert all or any portion of their Notes at their option at any time prior to the close of business on April 1, 2025, only under the following circumstances: • During any fiscal quarter commencing after the fiscal quarter ended October 31, 2020 (and only during such fiscal quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • During the five business day period after any ten consecutive trading day period (the measurement period) in which the “trading price” (as defined in the Indenture) per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; • If the Company calls such Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or • Upon the occurrence of specified corporate events, as noted in the Indenture. On or after April 1, 2025 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders of the Notes may convert all or any portion of their Notes at any time, regardless of the foregoing circumstances. The conversion rate will initially be 24.9507 shares of common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $40.08 per share of common stock. The conversion rate is subject to adjustment under certain circumstances in accordance with the terms of the Indenture, but will not be adjusted for accrued and unpaid interest. In addition, following certain corporate events that occur prior to the maturity date, the Company will, in certain circumstances, increase the conversion rate for a holder who elects to convert its Notes in connection with a fundamental change, as defined in the Indenture. The Company may not redeem the Notes prior to July 6, 2023. The Company may redeem for cash all or any portion of the Notes, at its option, on a redemption date occurring on or after July 6, 2023 and prior to the 41st scheduled trading day immediately preceding the maturity date, if the last reported sale price of the common stock has been at least 130% of the conversion price for the Notes then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the Notes. If the Company undergoes a fundamental change (as defined in the Indenture), holders may require the Company to repurchase for cash all or any portion of their Notes at a fundamental change repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date. The Indenture contains customary terms and covenants, including that upon certain events of default occurring and continuing, the trustee or the holders of at least 25% in aggregate principal amount of the outstanding Notes may declare the entire principal of all the Notes plus accrued and unpaid interest to be immediately due and payable. Prior to the adoption of ASU 2020-06 on February 1, 2021 and in accounting for the issuance of the Notes, the Company separated the Notes into liability and equity components. The carrying amount of the liability component was calculated using a discount rate of 7.30%, which was determined by measuring the fair value of a similar debt instrument that does not have an associated conversion feature. The carrying amount of the equity component representing the conversion option was $70.8 million and was determined by deducting the fair value of the liability component from the par value of the Notes. The equity component was not remeasured as long as it continued to meet the conditions for equity classification, and the equity component was recorded in additional paid- in-capital in the accompanying condensed consolidated balance sheet. The excess of the principal amount of the liability component over its carrying amount, or the debt discount, was amortized to interest expense at an annual effective interest rate of 7.88% over the contractual terms of the Notes. The interest rate was based on the interest rate of similar liabilities at the time of issuance that did not have associated convertible features. The debt component was classified as a long-term liability as of January 31, 2021. Prior to the adoption of ASU 2020-06 on February 1, 2021 and in accounting for the issuance costs of $9.3 million related to the Notes, the Company allocated the total amount incurred to the liability and equity components of the Notes based on their relative values. Issuance costs attributable to the liability component were $7.0 million and were amortized to interest expense using the effective interest method over the contractual term of the Notes. Issuance costs attributable to the equity component were $2.3 million and were netted with the equity component in additional paid-in capital. On February 1, 2021, the Company elected to early adopt ASU 2020-06 based on a modified retrospective transition method. Under such transition, prior-period information has not been retrospectively adjusted. In accounting for the Notes after adoption of ASU 2020-06, the Notes are accounted for as a single liability, and the carrying amount of the Notes is $280.6 million as of October 31, 2021, with principal of $287.5 million, net of unamortized issuance costs of $6.9 million. The Notes were classified as long-term liabilities as of October 31, 2021. The issuance costs related to the Notes are being amortized to interest expense over the contractual term of the Notes at an effective interest rate of 1.93%. The net carrying amount of the liability component of the Notes as of October 31, 2021 (post-ASU 2020-06 adoption) and as of January 31, 2021 (pre-ASU 2020-06 adoption) was as follows: As of October 31, 2021 As of January 31, 2021 (in thousands) Principal $ 287,500 $ 287,500 Less: unamortized debt discount — (63,664) Less: unamortized issuance costs (6,885) (6,308) Net carrying amount $ 280,615 $ 217,528 The net carrying amount of the equity component of the Notes as of October 31, 2021 (post-ASU 2020-06 adoption) and as of January 31, 2021 (pre-ASU 2020-06 adoption) was as follows: As of October 31, 2021 As of January 31, 2021 (in thousands) Proceeds allocated to the conversion options (debt discount) $ — $ 70,768 Less: issuance costs — (2,290) Carrying amount of the equity component $ — $ 68,478 Interest expense recognized related to the Notes is as follows: Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 (in thousands) Contractual interest expense $ 898 $ 898 $ 2,695 $ 1,248 Amortization of debt discount — 2,943 — 4,088 Amortization of debt issuance costs 452 292 1,350 405 Total interest expense related to the Notes $ 1,350 $ 4,133 $ 4,045 $ 5,741 Capped Call Transactions In connection with the offering of the Notes, the Company entered into privately negotiated capped call transactions (the “Capped Calls”) with certain financial institution counterparties (the “Option Counterparties”). The Capped Calls are generally intended to reduce or offset the potential dilution to the common stock upon any conversion of the Notes with such reduction or offset, as the case may be, subject to a cap based on the cap price. For accounting purposes, the Capped Calls are separate transactions, and not part of the terms of the Notes. The Capped Calls are recorded in stockholders’ equity and are not accounted for as derivatives. The cost of $35.7 million incurred to purchase the Capped Calls were recorded as a reduction to additional paid-in capital in the accompanying condensed consolidated balance sheet. The Capped Calls each have an initial strike price of approximately $40.08 per share, subject to certain adjustments, which corresponds to the initial conversion price of the Notes. The Capped Calls have an initial cap price of $61.66 per share, subject to certain adjustments. The Capped Calls cover, subject to anti-dilution adjustments, approximately 7.2 million shares of our common stock. The Capped Calls are subject to automatic exercise over a 40 trading day period commencing on May 2, 2025, subject to earlier termination under certain circumstances. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters From time to time in the normal course of business, the Company may be subject to various claims and other legal matters arising in the ordinary course of business. The Company investigates these claims as they arise and accrues estimates for resolution of legal and other contingencies when losses are probable and estimable. The Company is not currently a party to any legal proceedings and does not anticipate any pending or threatened litigation that would be expected to have a material adverse effect on its financial condition, results of operations, or cash flows. Warranties and Indemnification The Company has entered into service-level agreements with a portion of its customers defining levels of uptime reliability and performance and permitting those customers to receive credits if the Company fails to meet the defined levels of uptime. To date, the Company has not experienced any significant failures to meet defined levels of uptime reliability and performance as a result of those agreements and, as a result, the Company has not incurred or accrued any material liabilities related to these agreements in the financial statements. In the ordinary course of business, we may agree to indemnify customers, vendors, lessors, business partners, and other parties with respect to certain matters, including, but not limited to, losses arising out of the breach of such agreements, services to be provided by us, or from intellectual property infringement claims made by third parties. As permitted under Delaware law, we have entered into indemnification agreements with our directors and certain officers and employees that will require us, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers, or employees. No demands have been made upon us to provide indemnification under such agreements, and there are no claims that we are aware of that could have a |
Deferred Revenue and Performanc
Deferred Revenue and Performance Obligations | 9 Months Ended |
Oct. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue and Performance Obligations | Deferred Contract CostsDeferred contract costs, which primarily consist of deferred sales commissions, were $37.8 million and $31.6 million as of October 31, 2021 and January 31, 2021, respectively. Amortization expense for deferred contract costs was $3.9 million and $2.8 million for the three months ended October 31, 2021 and 2020, respectively, and $10.7 million and $7.9 million for the nine months ended October 31, 2021 and 2020, respectively. There was no impairment charge related to the costs capitalized for the periods presented.Deferred Revenue and Performance Obligations The following table presents the changes to the Company’s deferred revenue: Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 (in thousands) Deferred revenue, beginning of period $ 134,002 $ 101,180 $ 129,972 $ 92,569 Billings 80,608 57,636 215,765 166,747 Deferred revenue assumed in the Rundeck acquisition — 2,680 — 2,680 Revenue recognized (71,760) (53,772) (202,887) (154,272) Deferred revenue, end of period $ 142,850 $ 107,724 $ 142,850 $ 107,724 For the three months ended October 31, 2021 and 2020, the majority of revenue recognized was from the deferred revenue balances at the beginning of each quarter. For the nine months ended October 31, 2021 and 2020, approximately half of revenue recognized was from the deferred revenue balance at the beginning of each period. As of October 31, 2021, future estimated revenue related to performance obligations for cloud-hosted and term-license software subscriptions with terms of more than one year that are unsatisfied or partially unsatisfied at the end of the reporting periods was approximately $123.0 million. The Company expects to satisfy the substantial majority of these unsatisfied performance obligations over the next 24 months and the remainder thereafter. The Company applied the optional exemption for subscriptions with terms of less than one year. |
Common Stock and Stockholders'
Common Stock and Stockholders' Equity | 9 Months Ended |
Oct. 31, 2021 | |
Equity [Abstract] | |
Common Stock and Stockholders' Equity | Common Stock and Stockholders’ Equity Equity Incentive Plans The Company has two equity incentive plans: the 2010 Stock Plan (the “2010 Plan”) and the 2019 Equity Incentive Plan (the “2019 Plan”, collectively the “Stock Plans”). Upon completion of the Company’s initial public offering (“IPO”) in April 2019, the Company ceased granting awards under the 2010 Plan, and all shares that remained available for future issuance under the 2010 Plan at that time were transferred to the 2019 Plan. The 2019 Plan superseded and replaced the 2010 Plan. As of October 31, 2021 and January 31, 2021, the Company was authorized to grant up to 23,156,318 shares and 18,059,506 shares of common stock, respectively, under the Stock Plans. The Company currently uses authorized and unissued shares to satisfy stock award exercises and settlement of RSUs and PSUs. As of October 31, 2021 and January 31, 2021, there were 14,102,032 shares and 13,060,282 shares available for future issuance under the Stock Plans, respectively. Shares of common stock reserved for future issuance are as follows: October 31, 2021 Outstanding stock options and unvested RSUs and PSUs 15,563,023 Available for future stock option, RSU, and PSU grants 14,102,032 Available for ESPP 2,721,649 Total common stock reserved at October 31, 2021 32,386,704 Stock Option Activity Stock option activity is as follows: Number of Weighted Weighted Aggregate (in thousands) Outstanding at January 31, 2021 11,177,838 $ 8.25 6.9 years $ 452,452 Granted 151,296 $ 42.05 Exercised (2,010,991) $ 6.19 Canceled (323,928) $ 17.81 Outstanding at October 31, 2021 8,994,215 $ 8.94 6.3 years $ 295,119 Vested as of October 31, 2021 6,831,241 $ 6.49 5.9 years $ 240,896 The Company uses the Black-Scholes option-pricing model to estimate the fair value of stock options on the date of grant. The Company accounts for forfeitures as they occur. The following assumptions were used to calculate the fair value of employee stock option grants made during the periods: Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 Expected dividend yield — % — % — % — % Expected volatility 46.0% 43.0% - 44.1% 43.8% - 46.5% 43.0% - 44.1% Expected term (years) 6.1 3.7 - 6.1 6.1 3.7 - 6.1 Risk-free interest rate 1.11% 0.20% - 0.39% 1.04% - 1.16% 0.20% - 0.47% Stock options granted during the three months ended October 31, 2021 and 2020 had a weighted average grant date fair value of $19.01 and $23.04 per share, respectively. The aggregate intrinsic value of stock options exercised during the three months ended October 31, 2021 and 2020 was $27.3 million and $19.0 million, respectively. Stock options granted during the nine months ended October 31, 2021 and 2020 had a weighted average grant date fair value of $18.76 and $14.64 per share, respectively. The aggregate intrinsic value of stock options exercised during the nine months ended October 31, 2021 and 2020 was $73.4 million and $42.0 million, respectively. The intrinsic value for options exercised is the difference between the market value of the stock and the exercise price of the stock option at the date of exercise. As of October 31, 2021, there was approximately $21.6 million of total unrecognized compensation cost related to unvested stock options granted under the Stock Plans, which will be recognized over a weighted average period of 2.3 years. Restricted Stock Units A summary of the Company’s RSU activity and related information is as follows: Number of RSUs Weighted Outstanding at January 31, 2021 3,971,128 $ 23.60 Granted 4,097,275 $ 41.79 Vested (677,323) $ 25.31 Forfeited or canceled (1,057,674) $ 27.65 Outstanding at October 31, 2021 6,333,406 $ 34.50 The fair value of RSUs is based on the fair value of the underlying shares on the date of grant. The Company accounts for forfeitures as they occur. As of October 31, 2021, there was $208.2 million of unrecognized stock-based compensation expense related to unvested RSUs, which is expected to be recognized over a weighted average period of 3.1 years based on vesting under the award service conditions. Performance Stock Units A summary of the Company’s PSU activity and related information is as follows: Number of PSUs Weighted Outstanding at January 31, 2021 — $ — Granted 127,309 $ 41.17 Vested — $ — Forfeited or canceled (9,608) $ 41.17 Outstanding at October 31, 2021 117,701 $ 41.17 In April 2021, the Company granted 127,309 PSUs, with a weighted-average grant date fair value of $41.17 per share, to certain employees of the Company for which the ultimate number of units that will vest are determined based on the achievement of performance at the end of the stated performance period. The performance condition is based on the level of achievement of a Company target related to PagerDuty’s operating plan for fiscal 2022. The PSUs will vest over a three-year period, subject to continuous service with the Company. During the three and nine months ended October 31, 2021, the Company recorded stock-based compensation expense for the number of PSUs considered probable of vesting based on the expected attainment of the performance targets. As of October 31, 2021, total unrecognized stock-based compensation cost related to PSUs was $3.0 million. This unrecognized stock-based compensation cost is expected to be recognized using the accelerated attribution method over a weighted-average period of approximately 1.3 years. Employee Stock Purchase Plan In April 2019, the Board of Directors adopted and approved the 2019 ESPP, which became effective on April 11, 2019. The ESPP generally provides for 24-month offering periods beginning June 15 and December 15 of each year, with each offering period consisting of four six-month purchase periods. On each purchase date, eligible employees will purchase the shares at a price per share equal to 85% of the lesser of (1) the fair market value of the Company’s stock as of the beginning of the offering period or (2) the fair market value of the Company’s stock on the purchase date, as defined in the ESPP. During the three months ended October 31, 2021 and 2020, the Company recognized $0.8 million and $1.1 million of stock-based compensation expense related to the ESPP, respectively. During the nine months ended October 31, 2021 and 2020, the Company recognized $3.9 million and $3.9 million of stock-based compensation expense related to the ESPP, respectively. During the three months ended October 31, 2021 and 2020, the Company withheld $2.2 million and $1.7 million in contributions from employees, respectively. During the nine months ended October 31, 2021 and 2020, the Company withheld $7.2 million and $5.2 million, respectively. During the three months ended October 31, 2021 and 2020 there were no purchases related to the ESPP. During the nine months ended October 31, 2021, 222,474 shares of common stock were issued under the ESPP at a weighted average purchase price of $21.98. During the nine months ended October 31, 2020, 181,253 shares of common stock were issued under the ESPP at a purchase price of $19.63 per share. Stock-Based Compensation Stock-based compensation expense included in the Company’s condensed consolidated statements of operations is as follows: Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 (in thousands) Cost of revenue $ 861 $ 488 $ 2,560 $ 1,095 Research and development 6,183 2,807 16,230 7,459 Sales and marketing 4,606 6,254 12,961 11,409 General and administrative 6,128 3,910 16,115 11,772 Total $ 17,778 $ 13,459 $ 47,866 $ 31,735 In the three and nine months ended October 31, 2020, we recorded a one-time stock-based compensation expense of $3.1 million related to the modification of certain option awards. |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Oct. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss per Share The following table presents the calculation of basic and diluted net loss per share: Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 (in thousands, except per share data) Numerator: Net loss $ (26,341) $ (20,608) $ (78,560) $ (46,755) Denominator: Weighted average shares used in calculating net loss per share, basic and diluted 85,092 79,937 83,979 78,835 Net loss per share, basic and diluted $ (0.31) $ (0.26) $ (0.94) $ (0.59) Since the Company was in a loss position for the periods presented, basic net loss per share is the same as diluted net loss per share as the inclusion of all potential common stock outstanding would have been anti-dilutive. Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows: As of October 31, 2021 2020 (in thousands) Shares subject to outstanding common stock awards 15,448 15,995 Convertible senior notes 7,173 7,173 Restricted stock awards purchased with promissory notes — 124 Restricted stock issued to Rundeck key personnel 139 278 Shares issuable pursuant to the 2019 employee stock purchase plan 163 150 Total 22,923 23,720 |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's provision for income taxes for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in such period. The Company's quarterly tax provision, and estimate of its annual effective tax rate, is subject to variation due to several factors, including variability in pre-tax income (or loss), the mix of jurisdictions to which such income (or loss) relates, changes in how the Company does business, and tax law developments. The Company's estimated effective tax rate for the year differs from the U.S. statutory rate of 21% as a result of our U.S. losses for which no benefit will be realized, our foreign operations which are subject to tax rates that differ from those in the U.S, as well as the benefit for non-U.S. income tax credits. The Company recorded income tax expense of $0.2 million for the three months ended October 31, 2021, and an income tax benefit of $4.8 million for the three months ended October 31, 2020. The Company recorded income tax expense of $0.4 million for the nine months ended October 31, 2021 and an income tax benefit of $4.4 million for the nine months ended October 31, 2020. |
Geographic Information
Geographic Information | 9 Months Ended |
Oct. 31, 2021 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information Revenue by location is determined by the billing address of the customer. The following table sets forth revenue by geographic area: Three Months Ended October 31, Nine Months Ended October 31, 2021 2021 2020 2021 2020 (in thousands) United States $ 54,287 $ 40,966 $ 153,048 $ 118,234 International 17,473 12,806 49,839 36,038 Total $ 71,760 $ 53,772 $ 202,887 $ 154,272 Other than the United States, no other individual country accounted for 10% or more of revenue for the three and nine months ended October 31, 2021 or 2020. As of October 31, 2021, 84% of the Company’s long-lived assets, including property and equipment and right-of-use lease assets, were located in the United States, and 16% were |
Subsequent Events
Subsequent Events | 9 Months Ended |
Oct. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsThe Company has evaluated subsequent events through December 8, 2021. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated balance sheet as of January 31, 2021 was derived from the audited consolidated financial statements as of that date but does not include all of the information and notes required by GAAP for complete financial statements. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these 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, 2021, included in the Company’s Annual Report on Form 10-K, filed with the SEC. The condensed consolidated financial statements include the results of PagerDuty, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. In the opinion of management, the information contained herein reflects all adjustments necessary for a fair presentation of the Company’s financial position, results of operations and comprehensive loss, statements of stockholders’ equity, and cash flows. The results of operations for the three and nine months ended October 31, 2021 are not necessarily indicative of the results to be expected for the full year ending January 31, 2022 or for any other interim period, or for any future year. The Company’s fiscal year ends on January 31. References to fiscal 2022, for example, refer to the fiscal year ending January 31, 2022. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make, on an ongoing basis, estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. The Company’s most significant estimates and judgments involve the fair value of stock awards, period of benefit for amortizing deferred contract costs, the determination of the allowance for doubtful accounts, the provision for income taxes, including the related valuation allowance and any uncertain tax positions, fair value of acquired assets and assumed liabilities, impairment of goodwill and intangible assets, the incremental borrowing rate for lease liabilities, and estimates related to our revenue recognition, such as the assessment of performance obligations in our revenue arrangements and the fair value assigned to each performance obligation, among others. Management bases its |
Concentrations of Risk and Significant Customers | Concentrations of Risk and Significant Customers The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, available-for-sale investments, and accounts receivable. All of the Company’s cash and cash equivalents and investments are invested in money market funds, U.S. Treasury securities, commercial paper, corporate debt securities, or U.S. Government agency securities that management believes to be of high credit quality. |
Segment Information | Segment Information The Company manages its operations and allocates resources as one operating segment. The Company’s chief operating decision maker (“CODM”) is its chief executive officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes compensation expense for all stock-based payment awards, including stock options, restricted stock units (“RSUs”), and performance stock units (“PSUs”), based on the estimated fair value of the award on the grant date. The Company estimates the fair value of stock options issued to employees on the date of grant using the Black-Scholes option pricing model, which is impacted by the estimated fair value of the Company’s common stock, as well as certain assumptions including the expected volatility over the term of the option awards, the expected term of the awards, risk-free interest rates and the expected dividend yield. Assumptions and estimates used in the determination of the fair value of stock options are as follows: Expected volatility —Expected volatility is a measure of the amount by which the stock price is expected to fluctuate. Since the Company does not have sufficient trading history for its common stock, it estimates the expected volatility of its stock options by taking the average historical volatility of a group of comparable publicly traded companies over a period equal to the expected life of the options. Expected term —The Company determines the expected term based on the average period the stock options are expected to remain outstanding, generally calculated as the midpoint of the stock options’ vesting term and contractual expiration period, as the Company does not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior. Risk-free rate —The Company uses the U.S. Treasury yield for its risk-free interest rate that corresponds with the expected term. Expected dividend yield —The Company utilizes a dividend yield of zero, as it does not currently issue dividends and does not expect to in the future. The Company estimates the fair value of RSUs and PSUs at our stock price on the grant date. The Company estimates the fair value of shares to be issued under the employee stock purchase plan (the “ESPP”) on the first day of the offering period using the Black-Scholes valuation model, which is impacted by the estimated fair value of the Company’s common stock, as well as certain assumptions including the expected volatility over the term of the offering period, the expected term of the awards, risk-free interest rates and the expected dividend yield. Assumptions used in the determination of the fair value of the ESPP are the same as those used in the determination of the fair value of our stock options. The Company generally recognizes compensation expense for employee stock-based payment awards on a straight-line basis over the period during which an award recipient is required to provide services in exchange for the award (generally the vesting period of the award), with the exception of PSUs which are recognized using the accelerated attribution method. The Company accounts for forfeitures as they occur. The fair value of each non-employee stock option is estimated at the date of grant using the Black-Scholes option pricing model and is not remeasured over the vesting term. Assumptions used in valuing non-employee stock options are generally consistent with those used for employee stock options with the exception that the expected term is over the contractual life. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In August 2020, the FASB issued Accounting Standard Update No. 2020-06 (“ASU 2020-06”), Debt—Debt with Conversion Options (“Subtopic 470-20”) and Derivatives and Hedging—Contracts in Entity’s Own Equity (“Subtopic 815-40”) Recently Issued Accounting Pronouncements In October 2021, the FASB issued Accounting Standard Update No. 2021-08 (“ASU 2021-08”), Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which requires that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606 (Revenue from Contracts with Customers). At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. The ASU is part of the FASB's simplification initiative, which aims to reduce unnecessary complexity in U.S. GAAP. ASU 2021-08 will be effective for annual reporting periods beginning after December 15, 2022. Early adoption is permitted, including adoption in an interim period. The adoption of the standard will impact future business combinations and require the Company to measure acquired contract assets and liabilities in accordance with ASC 606. The Company does not expect the adoption of ASU 2021-08 to have a material impact on the consolidated financial statements. |
Operating Leases | Operating Leases The Company has entered into various non-cancellable operating leases for its office spaces with lease periods expiring between fiscal 2022 and fiscal 2029. The operating lease agreements generally provide for rental payments on a graduated basis and for options to renew, which could increase future minimum lease payments if exercised. Lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The lease right-of-use assets also include any lease payments made and exclude lease incentives such as tenant improvement allowances. The operating leases typically include non-lease components such as common-area maintenance costs. The Company has elected to include non-lease components with lease payments for the purpose of calculating lease right-of-use assets and liabilities, to the extent that they are fixed. Non-lease components that are not fixed are expensed as incurred as variable lease payments. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Accounting Policies [Abstract] | |
Accounting Standards Update and Change in Accounting Principle | As of January 31, 2021 ASU 2020-06 Adoption Adjustment As of February 1, 2021 (in thousands) Liabilities Outstanding principal $ 287,500 $ — $ 287,500 Unamortized debt discount and issuance costs (69,972) 61,736 (8,236) Net carrying amount $ 217,528 $ 61,736 $ 279,264 Equity Additional paid-in-capital $ (614,494) $ 68,478 $ (546,016) Accumulated deficit (248,110) 6,742 (241,368) |
Cash, Cash Equivalents, and I_2
Cash, Cash Equivalents, and Investments (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of Cash and Cash Equivalents | Cash, cash equivalents, and investments consisted of the following: As of October 31, 2021 As of January 31, 2021 (in thousands) Cash and cash equivalents Cash $ 297,777 $ 184,308 Money market funds 59,961 139,870 Commercial paper 2,000 — U.S. Treasury securities — 14,988 Total cash and cash equivalents $ 359,738 $ 339,166 Available-for-sale investments: U.S. Treasury securities $ 39,217 $ 45,026 Commercial paper 39,778 34,598 Corporate debt securities 106,550 141,488 Total available-for-sale investments $ 185,545 $ 221,112 |
Components of Available-for-sale Investments | Cash, cash equivalents, and investments consisted of the following: As of October 31, 2021 As of January 31, 2021 (in thousands) Cash and cash equivalents Cash $ 297,777 $ 184,308 Money market funds 59,961 139,870 Commercial paper 2,000 — U.S. Treasury securities — 14,988 Total cash and cash equivalents $ 359,738 $ 339,166 Available-for-sale investments: U.S. Treasury securities $ 39,217 $ 45,026 Commercial paper 39,778 34,598 Corporate debt securities 106,550 141,488 Total available-for-sale investments $ 185,545 $ 221,112 |
Components of Held-to-maturity Investments | Cash, cash equivalents, and investments consisted of the following: As of October 31, 2021 As of January 31, 2021 (in thousands) Cash and cash equivalents Cash $ 297,777 $ 184,308 Money market funds 59,961 139,870 Commercial paper 2,000 — U.S. Treasury securities — 14,988 Total cash and cash equivalents $ 359,738 $ 339,166 Available-for-sale investments: U.S. Treasury securities $ 39,217 $ 45,026 Commercial paper 39,778 34,598 Corporate debt securities 106,550 141,488 Total available-for-sale investments $ 185,545 $ 221,112 The following tables summarize the Company’s investments’ adjusted cost, net unrealized gains (losses), and fair value by significant investment category as of October 31, 2021 and January 31, 2021. Gross realized gains or losses from sales of available-for-sale securities were not material for the three and nine months ended October 31, 2021. As of October 31, 2021 Cost Basis Unrealized Loss, Net Recorded Basis (in thousands) Available-for-sale investments: U.S. Treasury securities $ 39,221 $ (4) $ 39,217 Commercial paper 39,791 (13) 39,778 Corporate debt securities 106,724 (174) 106,550 Total available-for-sale investments $ 185,736 $ (191) $ 185,545 As of January 31, 2021 Cost Basis Unrealized Gain (Loss), Net Recorded Basis (in thousands) Available-for-sale investments: U.S. Treasury securities $ 45,023 $ 3 $ 45,026 Commercial paper 34,607 (9) 34,598 Corporate debt securities 141,139 349 141,488 Total available-for-sale investments $ 220,769 $ 343 $ 221,112 |
Summary of Carrying Value of Available-for-sale Investments | The following tables summarize the Company’s investments’ adjusted cost, net unrealized gains (losses), and fair value by significant investment category as of October 31, 2021 and January 31, 2021. Gross realized gains or losses from sales of available-for-sale securities were not material for the three and nine months ended October 31, 2021. As of October 31, 2021 Cost Basis Unrealized Loss, Net Recorded Basis (in thousands) Available-for-sale investments: U.S. Treasury securities $ 39,221 $ (4) $ 39,217 Commercial paper 39,791 (13) 39,778 Corporate debt securities 106,724 (174) 106,550 Total available-for-sale investments $ 185,736 $ (191) $ 185,545 As of January 31, 2021 Cost Basis Unrealized Gain (Loss), Net Recorded Basis (in thousands) Available-for-sale investments: U.S. Treasury securities $ 45,023 $ 3 $ 45,026 Commercial paper 34,607 (9) 34,598 Corporate debt securities 141,139 349 141,488 Total available-for-sale investments $ 220,769 $ 343 $ 221,112 |
Summary of Contractual Maturities of Available-for-sale Securities | The following tables present the Company’s available-for-sale securities by contractual maturity date as of October 31, 2021 and January 31, 2021: As of October 31, 2021 Cost Basis Recorded Basis (in thousands) Due within one year $ 145,249 $ 145,192 Due between one to five years 40,487 40,353 Total $ 185,736 $ 185,545 As of January 31, 2021 Cost Basis Recorded Basis (in thousands) Due within one year $ 171,498 $ 171,837 Due between one to five years 49,271 49,275 Total $ 220,769 $ 221,112 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Information about Company's Financial Assets | The following tables present information about the Company’s financial assets that are required to be measured or disclosed at fair value using the above input categories: As of October 31, 2021 Level 1 Level 2 Level 3 Total (in thousands) Money market funds $ 59,961 $ — $ — $ 59,961 U.S. Treasury securities — 39,217 — 39,217 Commercial paper 2,000 39,778 — 41,778 Corporate debt securities — 106,550 — 106,550 Total $ 61,961 $ 185,545 $ — $ 247,506 Included in cash equivalents $ 61,961 Included in investments $ 185,545 As of January 31, 2021 Level 1 Level 2 Level 3 Total (in thousands) Money market funds $ 139,870 $ — $ — $ 139,870 U.S. Treasury securities 14,988 45,026 — 60,014 Commercial paper — 34,598 — 34,598 Corporate debt securities — 141,488 — 141,488 Total $ 154,858 $ 221,112 $ — $ 375,970 Included in cash equivalents $ 154,858 Included in investments $ 221,112 |
Goodwill and Acquired Intangi_2
Goodwill and Acquired Intangible Assets (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Other Intangible Assets Subject to Amortization | Acquired intangible assets subject to amortization as of October 31, 2021 were as follows: Cost Accumulated Amortization Net Weighted Average (in thousands) (in years) Customer relationships $ 21,800 $ (2,362) $ 19,438 8.9 Developed technology 5,600 (1,213) 4,387 3.9 Trademarks 400 (217) 183 0.9 Total acquired intangibles, net $ 27,800 $ (3,792) $ 24,008 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and equipment, net, consisted of the following: As of October 31, 2021 As of January 31, 2021 (in thousands) Leasehold improvements $ 13,246 $ 12,767 Computers and equipment 7,425 6,562 Furniture and fixtures 3,040 3,017 Capitalized internal-use software 5,180 1,355 Gross property and equipment (1) 28,891 23,701 Accumulated depreciation and amortization (14,266) (11,062) Property and equipment, net $ 14,625 $ 12,639 (1) Gross property and equipment includes construction-in-progress for leasehold improvements and capitalized internal-use software of $2.7 million and $1.5 million that had not yet been placed in service as of October 31, 2021 and January 31, 2021, respectively. The costs associated with construction-in-progress are not amortized until the asset is available for its intended use. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Leases [Abstract] | |
Information About Lease on Condensed Consolidated Balance Sheet | The following table presents information about leases on the condensed consolidated balance sheet. As of October 31, 2021 As of January 31, 2021 (in thousands) Assets Lease right-of-use assets $ 21,360 $ 24,691 Liabilities Lease liabilities 5,554 5,262 Lease liabilities, non-current 22,438 26,542 |
Information About Leases on Condensed Consolidated Statement of Operations and Supplemental Cash Flow Information | The following table presents information about leases on the condensed consolidated statement of operations. Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 (in thousands) Operating lease expense $ 1,401 $ 1,448 $ 4,173 $ 4,335 Short-term lease expense 304 105 473 665 Variable lease expense 313 335 628 998 The following table presents supplemental cash flow information about the Company’s leases. Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 (in thousands) Cash paid for amounts included in the measurement of lease liabilities $ 1,581 $ 1,524 $ 4,724 $ 3,811 |
Debt and Financing Arrangemen_2
Debt and Financing Arrangements (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Debt Disclosure [Abstract] | |
Net Carrying Amount of Liability and Equity Components of Convertible Notes | The net carrying amount of the liability component of the Notes as of October 31, 2021 (post-ASU 2020-06 adoption) and as of January 31, 2021 (pre-ASU 2020-06 adoption) was as follows: As of October 31, 2021 As of January 31, 2021 (in thousands) Principal $ 287,500 $ 287,500 Less: unamortized debt discount — (63,664) Less: unamortized issuance costs (6,885) (6,308) Net carrying amount $ 280,615 $ 217,528 The net carrying amount of the equity component of the Notes as of October 31, 2021 (post-ASU 2020-06 adoption) and as of January 31, 2021 (pre-ASU 2020-06 adoption) was as follows: As of October 31, 2021 As of January 31, 2021 (in thousands) Proceeds allocated to the conversion options (debt discount) $ — $ 70,768 Less: issuance costs — (2,290) Carrying amount of the equity component $ — $ 68,478 Interest expense recognized related to the Notes is as follows: Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 (in thousands) Contractual interest expense $ 898 $ 898 $ 2,695 $ 1,248 Amortization of debt discount — 2,943 — 4,088 Amortization of debt issuance costs 452 292 1,350 405 Total interest expense related to the Notes $ 1,350 $ 4,133 $ 4,045 $ 5,741 |
Deferred Revenue and Performa_2
Deferred Revenue and Performance Obligations (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Deferred Revenue | The following table presents the changes to the Company’s deferred revenue: Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 (in thousands) Deferred revenue, beginning of period $ 134,002 $ 101,180 $ 129,972 $ 92,569 Billings 80,608 57,636 215,765 166,747 Deferred revenue assumed in the Rundeck acquisition — 2,680 — 2,680 Revenue recognized (71,760) (53,772) (202,887) (154,272) Deferred revenue, end of period $ 142,850 $ 107,724 $ 142,850 $ 107,724 |
Common Stock and Stockholders_2
Common Stock and Stockholders' Equity (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Equity [Abstract] | |
Summary of Shares of Common Stock Reserved for Future Issuance | Shares of common stock reserved for future issuance are as follows: October 31, 2021 Outstanding stock options and unvested RSUs and PSUs 15,563,023 Available for future stock option, RSU, and PSU grants 14,102,032 Available for ESPP 2,721,649 Total common stock reserved at October 31, 2021 32,386,704 |
Schedule of Stock Option Activity | Stock option activity is as follows: Number of Weighted Weighted Aggregate (in thousands) Outstanding at January 31, 2021 11,177,838 $ 8.25 6.9 years $ 452,452 Granted 151,296 $ 42.05 Exercised (2,010,991) $ 6.19 Canceled (323,928) $ 17.81 Outstanding at October 31, 2021 8,994,215 $ 8.94 6.3 years $ 295,119 Vested as of October 31, 2021 6,831,241 $ 6.49 5.9 years $ 240,896 |
Schedule of Assumptions Used to Calculate Fair Value of Employee Stock Option Grants Made | The following assumptions were used to calculate the fair value of employee stock option grants made during the periods: Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 Expected dividend yield — % — % — % — % Expected volatility 46.0% 43.0% - 44.1% 43.8% - 46.5% 43.0% - 44.1% Expected term (years) 6.1 3.7 - 6.1 6.1 3.7 - 6.1 Risk-free interest rate 1.11% 0.20% - 0.39% 1.04% - 1.16% 0.20% - 0.47% |
Schedule of Restricted Stock Unit Activity | A summary of the Company’s RSU activity and related information is as follows: Number of RSUs Weighted Outstanding at January 31, 2021 3,971,128 $ 23.60 Granted 4,097,275 $ 41.79 Vested (677,323) $ 25.31 Forfeited or canceled (1,057,674) $ 27.65 Outstanding at October 31, 2021 6,333,406 $ 34.50 |
Schedule of Restricted Stock Unit Activity | A summary of the Company’s PSU activity and related information is as follows: Number of PSUs Weighted Outstanding at January 31, 2021 — $ — Granted 127,309 $ 41.17 Vested — $ — Forfeited or canceled (9,608) $ 41.17 Outstanding at October 31, 2021 117,701 $ 41.17 |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense included in the Company’s condensed consolidated statements of operations is as follows: Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 (in thousands) Cost of revenue $ 861 $ 488 $ 2,560 $ 1,095 Research and development 6,183 2,807 16,230 7,459 Sales and marketing 4,606 6,254 12,961 11,409 General and administrative 6,128 3,910 16,115 11,772 Total $ 17,778 $ 13,459 $ 47,866 $ 31,735 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Net Loss Per Share | The following table presents the calculation of basic and diluted net loss per share: Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 (in thousands, except per share data) Numerator: Net loss $ (26,341) $ (20,608) $ (78,560) $ (46,755) Denominator: Weighted average shares used in calculating net loss per share, basic and diluted 85,092 79,937 83,979 78,835 Net loss per share, basic and diluted $ (0.31) $ (0.26) $ (0.94) $ (0.59) |
Schedule of Anti-dilutive Securities That Were Not Included in Diluted Per Share Calculations | Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows: As of October 31, 2021 2020 (in thousands) Shares subject to outstanding common stock awards 15,448 15,995 Convertible senior notes 7,173 7,173 Restricted stock awards purchased with promissory notes — 124 Restricted stock issued to Rundeck key personnel 139 278 Shares issuable pursuant to the 2019 employee stock purchase plan 163 150 Total 22,923 23,720 |
Geographic Information (Tables)
Geographic Information (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Segment Reporting [Abstract] | |
Disaggregation of Revenue By Geographic Location | Revenue by location is determined by the billing address of the customer. The following table sets forth revenue by geographic area: Three Months Ended October 31, Nine Months Ended October 31, 2021 2021 2020 2021 2020 (in thousands) United States $ 54,287 $ 40,966 $ 153,048 $ 118,234 International 17,473 12,806 49,839 36,038 Total $ 71,760 $ 53,772 $ 202,887 $ 154,272 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) | 9 Months Ended | |||||||
Oct. 31, 2021USD ($)segment | Jul. 31, 2021USD ($) | Feb. 01, 2021USD ($) | Jan. 31, 2021USD ($) | Oct. 31, 2020USD ($) | Jul. 31, 2020USD ($) | Jun. 25, 2020USD ($) | Jan. 31, 2020USD ($) | |
Accounting Policies [Abstract] | ||||||||
Number of operating segments | segment | 1 | |||||||
Related party transaction, revenue | $ 1,100,000 | |||||||
Related party transaction, receivable | $ 2,200,000 | |||||||
Expected dividend yield | 0.00% | |||||||
Item Effected [Line Items] | ||||||||
Expected dividend yield | 0.00% | |||||||
Convertible senior notes, net | $ 280,615,000 | $ 279,264,000 | $ 217,528,000 | |||||
Accumulated deficit | 273,389,000 | $ 285,172,000 | 366,727,000 | $ 374,558,000 | $ 341,871,000 | $ 307,938,000 | ||
Accumulated Deficit | ||||||||
Item Effected [Line Items] | ||||||||
Accumulated deficit | (319,928,000) | (293,587,000) | (248,110,000) | (225,962,000) | (205,354,000) | (179,207,000) | ||
Additional Paid-in Capital | ||||||||
Item Effected [Line Items] | ||||||||
Accumulated deficit | 593,508,000 | $ 578,728,000 | 614,494,000 | $ 599,886,000 | $ 546,169,000 | $ 487,008,000 | ||
Cumulative Effect, Period of Adoption, Adjustment | ||||||||
Item Effected [Line Items] | ||||||||
Accumulated deficit | (61,736,000) | |||||||
Cumulative Effect, Period of Adoption, Adjustment | Accumulated Deficit | ||||||||
Item Effected [Line Items] | ||||||||
Accumulated deficit | 6,742,000 | |||||||
Cumulative Effect, Period of Adoption, Adjustment | Additional Paid-in Capital | ||||||||
Item Effected [Line Items] | ||||||||
Accumulated deficit | (68,478,000) | |||||||
Accounting Standards Update 2020-06 | ||||||||
Item Effected [Line Items] | ||||||||
Convertible senior notes, net | $ 61,700,000 | |||||||
Convertible Senior Notes | ||||||||
Item Effected [Line Items] | ||||||||
Aggregate principal amount of debt issued | $ 287,500,000 | $ 287,500,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Adjusted Financial Statements to Apply Adopted Guidance (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Feb. 01, 2021 | Jan. 31, 2021 |
Liabilities | |||
Principal | $ 287,500 | ||
Unamortized debt discount and issuance costs | (8,236) | ||
Net carrying amount | $ 280,615 | 279,264 | $ 217,528 |
Equity | |||
Additional paid-in capital | (593,508) | (546,016) | (614,494) |
Accumulated deficit | $ (319,928) | $ (241,368) | (248,110) |
Accounting Standards Update 2020-06 | |||
Liabilities | |||
Net carrying amount | 61,700 | ||
Previously Reported | |||
Liabilities | |||
Principal | 287,500 | ||
Unamortized debt discount and issuance costs | (69,972) | ||
Net carrying amount | 217,528 | ||
Equity | |||
Additional paid-in capital | (614,494) | ||
Accumulated deficit | (248,110) | ||
ASU 2020-06 Adoption Adjustment | Accounting Standards Update 2020-06 | |||
Liabilities | |||
Principal | 0 | ||
Unamortized debt discount and issuance costs | 61,736 | ||
Net carrying amount | 61,736 | ||
Equity | |||
Additional paid-in capital | 68,478 | ||
Accumulated deficit | $ 6,742 |
Cash, Cash Equivalents, and I_3
Cash, Cash Equivalents, and Investments - Components of Cash and Cash Equivalents and Investments (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Jan. 31, 2021 |
Cash and cash equivalents | ||
Cash | $ 297,777 | $ 184,308 |
Money market funds | 59,961 | 139,870 |
Commercial paper | 2,000 | 0 |
U.S. Treasury securities | 0 | 14,988 |
Total cash and cash equivalents | 359,738 | 339,166 |
Debt Securities, Available-for-sale [Line Items] | ||
Total available-for-sale investments | 185,545 | 221,112 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total available-for-sale investments | 39,217 | 45,026 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total available-for-sale investments | 39,778 | 34,598 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total available-for-sale investments | $ 106,550 | $ 141,488 |
Cash, Cash Equivalents, and I_4
Cash, Cash Equivalents, and Investments - Carrying Value of Investments (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Jan. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Cost Basis | $ 185,736 | $ 220,769 |
Unrealized Loss, Net | (191) | 343 |
Recorded Basis | 185,545 | 221,112 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost Basis | 39,221 | 45,023 |
Unrealized Loss, Net | (4) | 3 |
Recorded Basis | 39,217 | 45,026 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost Basis | 39,791 | 34,607 |
Unrealized Loss, Net | (13) | (9) |
Recorded Basis | 39,778 | 34,598 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost Basis | 106,724 | 141,139 |
Unrealized Loss, Net | (174) | 349 |
Recorded Basis | $ 106,550 | $ 141,488 |
Cash, Cash Equivalents, and I_5
Cash, Cash Equivalents, and Investments - Contractual Maturity (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Jan. 31, 2021 |
Cost Basis | ||
Due within one year | $ 145,249 | $ 171,498 |
Due between one to five years | 40,487 | 49,271 |
Cost Basis | 185,736 | 220,769 |
Recorded Basis | ||
Due within one year | 145,192 | 171,837 |
Due between one to five years | 40,353 | 49,275 |
Recorded Basis | $ 185,545 | $ 221,112 |
Cash, Cash Equivalents, and I_6
Cash, Cash Equivalents, and Investments - Additional Information (Details) | 9 Months Ended |
Oct. 31, 2021USD ($)security | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Available-for-sale securities in an unrealized loss position | security | 65 |
Securities in a continuous net loss position for 12 months or longer | security | 1 |
Total unrealized loss on available-for-sale securities | $ | $ 200,000 |
Impairment loss recorded | $ | $ 0 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring - USD ($) $ in Thousands | Oct. 31, 2021 | Jan. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 61,961 | $ 154,858 |
Included in investments | 185,545 | 221,112 |
Total | 247,506 | 375,970 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 61,961 | 154,858 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 185,545 | 221,112 |
Fair value of convertible senior notes | 369,300 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Included in investments | 39,217 | 60,014 |
U.S. Treasury securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Included in investments | 0 | 14,988 |
U.S. Treasury securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Included in investments | 39,217 | 45,026 |
U.S. Treasury securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Included in investments | 0 | 0 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Included in investments | 41,778 | 34,598 |
Commercial paper | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Included in investments | 2,000 | 0 |
Commercial paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Included in investments | 39,778 | 34,598 |
Commercial paper | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Included in investments | 0 | 0 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Included in investments | 106,550 | 141,488 |
Corporate debt securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Included in investments | 0 | 0 |
Corporate debt securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Included in investments | 106,550 | 141,488 |
Corporate debt securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Included in investments | 0 | 0 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 59,961 | 139,870 |
Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 59,961 | 139,870 |
Money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Money market funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 0 | $ 0 |
Goodwill and Acquired Intangi_3
Goodwill and Acquired Intangible Assets - Schedule of Other Intangible Assets Subject to Amortization (Details) $ in Thousands | 9 Months Ended |
Oct. 31, 2021USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets | $ 27,800 |
Accumulated Amortization | (3,792) |
Net | 24,008 |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets | 21,800 |
Accumulated Amortization | (2,362) |
Net | $ 19,438 |
Weighted Average Remaining Useful Life | 8 years 10 months 24 days |
Developed technology | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets | $ 5,600 |
Accumulated Amortization | (1,213) |
Net | $ 4,387 |
Weighted Average Remaining Useful Life | 3 years 10 months 24 days |
Trademarks | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets | $ 400 |
Accumulated Amortization | (217) |
Net | $ 183 |
Weighted Average Remaining Useful Life | 10 months 24 days |
Goodwill and Acquired Intangi_4
Goodwill and Acquired Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Changes in goodwill | $ 0 | |||
Amortization expense related to intangible assets | $ 900,000 | $ 300,000 | $ 2,600,000 | $ 300,000 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - USD ($) $ in Thousands | Oct. 01, 2020 | Oct. 31, 2021 | Jan. 31, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 72,126 | $ 72,126 | |
Intangible assets | 27,800 | ||
Customer relationships | |||
Business Acquisition [Line Items] | |||
Intangible assets | 21,800 | ||
Developed technology | |||
Business Acquisition [Line Items] | |||
Intangible assets | 5,600 | ||
Trademarks | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 400 | ||
Rundeck, Inc | |||
Business Acquisition [Line Items] | |||
Purchase consideration | $ 95,500 | ||
Goodwill | 72,100 | ||
Rundeck, Inc | Customer relationships | |||
Business Acquisition [Line Items] | |||
Intangible assets | 21,800 | ||
Rundeck, Inc | Developed technology | |||
Business Acquisition [Line Items] | |||
Intangible assets | 5,600 | ||
Rundeck, Inc | Trademarks | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 400 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | Jan. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||||
Gross property and equipment | $ 28,891 | $ 28,891 | $ 23,701 | ||
Accumulated depreciation and amortization | (14,266) | (14,266) | (11,062) | ||
Property and equipment, net | 14,625 | 14,625 | 12,639 | ||
Depreciation and amortization | 1,300 | $ 1,000 | 3,400 | $ 2,900 | |
Leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Gross property and equipment | 13,246 | 13,246 | 12,767 | ||
Computers and equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Gross property and equipment | 7,425 | 7,425 | 6,562 | ||
Furniture and fixtures | |||||
Property, Plant and Equipment [Line Items] | |||||
Gross property and equipment | 3,040 | 3,040 | 3,017 | ||
Capitalized internal-use software | |||||
Property, Plant and Equipment [Line Items] | |||||
Gross property and equipment | 5,180 | 5,180 | 1,355 | ||
Construction-in-progress | |||||
Property, Plant and Equipment [Line Items] | |||||
Gross property and equipment | $ 2,700 | $ 2,700 | $ 1,500 |
Deferred Contract Costs (Detail
Deferred Contract Costs (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | Jan. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||||
Deferred contract costs | $ 37,800,000 | $ 37,800,000 | $ 31,600,000 | ||
Amortization of deferred contract costs | $ 3,900,000 | $ 2,800,000 | 10,651,000 | $ 7,894,000 | |
Impairment loss in relation to costs capitalized | $ 0 | $ 0 |
Leases - Information About Leas
Leases - Information About Lease on Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Jan. 31, 2021 |
Assets | ||
Lease right-of-use assets | $ 21,360 | $ 24,691 |
Liabilities | ||
Lease liabilities | 5,554 | 5,262 |
Lease liabilities, non-current | $ 22,438 | $ 26,542 |
Leases - Additional Information
Leases - Additional Information (Details) | Oct. 31, 2021 |
Leases [Abstract] | |
Weighted average remaining lease term (in years) | 5 years |
Weighted average discount rate | 3.70% |
Leases - Information About Le_2
Leases - Information About Leases on Condensed Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Leases [Abstract] | ||||
Operating lease expense | $ 1,401 | $ 1,448 | $ 4,173 | $ 4,335 |
Short-term lease expense | 304 | 105 | 473 | 665 |
Variable lease expense | $ 313 | $ 335 | $ 628 | $ 998 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Leases [Abstract] | ||||
Cash paid for amounts included in the measurement of lease liabilities | $ 1,581 | $ 1,524 | $ 4,724 | $ 3,811 |
Debt and Financing Arrangemen_3
Debt and Financing Arrangements - Additional Information (Details) $ / shares in Units, shares in Millions | Jun. 25, 2020USD ($)day$ / sharesshares | Oct. 31, 2021USD ($) | Oct. 31, 2020USD ($) | Apr. 30, 2021 | Jan. 31, 2021USD ($) |
Debt Instrument [Line Items] | |||||
Conversion rate | 0.0249507 | ||||
Net cost incurred to purchase capped calls | $ 0 | $ 35,708,000 | |||
Convertible Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount of debt issued | $ 287,500,000 | 287,500,000 | |||
Net proceeds from debt offering, after deducting initial purchaser discounts and debt issuance costs paid or payable | $ 278,200,000 | ||||
Stated interest rate | 1.25% | 1.25% | |||
Initial conversion price (in dollars per share) | $ / shares | $ 40.08 | ||||
Event of default, option to accelerate amounts due, minimum percentage of aggregate principal amount of outstanding debt | 25.00% | ||||
Carrying amount of equity component representing conversion option | $ 70,800,000 | $ 0 | $ 70,768,000 | ||
Effective interest rate | 7.88% | 1.93% | |||
Issuance costs attributable to company | $ 9,300,000 | ||||
Issuance costs attributable to liability component | 7,000,000 | ||||
Less: issuance costs | 2,300,000 | $ 0 | 2,290,000 | ||
Long-term debt | 280,615,000 | 217,528,000 | |||
Unamortized issuance costs | $ 6,885,000 | $ 6,308,000 | |||
Net cost incurred to purchase capped calls | $ 35,700,000 | ||||
Convertible Senior Notes | Capped Calls | |||||
Debt Instrument [Line Items] | |||||
Initial strike price (in dollars per share) | $ / shares | $ 40.08 | ||||
Cap price (in dollars per share) | $ / shares | $ 61.66 | ||||
Number of shares of common stock covered by capped calls (in shares) | shares | 7.2 | ||||
Automatic exercise period for capped calls, trading days | day | 40 | ||||
Convertible Senior Notes | Debt Conversion Terms, One | |||||
Debt Instrument [Line Items] | |||||
Threshold trading days | day | 20 | ||||
Threshold consecutive trading days | day | 30 | ||||
Threshold percentage of stock price trigger | 130.00% | ||||
Convertible Senior Notes | Debt Conversion Terms, Two | |||||
Debt Instrument [Line Items] | |||||
Threshold trading days | day | 5 | ||||
Threshold consecutive trading days | day | 10 | ||||
Threshold percentage of product of last reported sales price of common stock and conversion rate on each such trading day | 98.00% | ||||
Convertible Senior Notes | Discount Rate | |||||
Debt Instrument [Line Items] | |||||
Liability component calculation, measurement input | 0.0730 | ||||
Convertible Senior Notes | On or after July 6, 2023 | |||||
Debt Instrument [Line Items] | |||||
Threshold trading days | day | 20 | ||||
Threshold consecutive trading days | day | 30 | ||||
Threshold percentage of stock price trigger | 130.00% | ||||
Redemption, threshold trading days immediately preceding maturity date | day | 41 | ||||
Redemption price, percentage of principal amount to be redeemed | 100.00% | ||||
Convertible Senior Notes | Fundamental Change | |||||
Debt Instrument [Line Items] | |||||
Redemption price, percentage of principal amount to be redeemed | 100.00% |
Debt and Financing Arrangemen_4
Debt and Financing Arrangements - Net Carrying Amount (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Feb. 01, 2021 | Jan. 31, 2021 | Jun. 25, 2020 |
Liability Component: | ||||
Principal | $ 287,500 | |||
Convertible Senior Notes | ||||
Liability Component: | ||||
Principal | $ 287,500 | $ 287,500 | ||
Less: unamortized debt discount | 0 | (63,664) | ||
Less: unamortized issuance costs | (6,885) | (6,308) | ||
Net carrying amount | 280,615 | 217,528 | ||
Proceeds allocated to the conversion options (debt discount) | 0 | 70,768 | $ 70,800 | |
Less: issuance costs | 0 | 2,290 | 2,300 | |
Carrying amount of the equity component | 0 | 68,478 | ||
Equity | ||||
Proceeds allocated to the conversion options (debt discount) | 0 | 70,768 | 70,800 | |
Less: issuance costs | 0 | (2,290) | $ (2,300) | |
Carrying amount of the equity component | $ 0 | $ 68,478 |
Debt and Financing Arrangemen_5
Debt and Financing Arrangements - Interest Expense (Details) - Convertible Senior Notes - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Debt Instrument [Line Items] | ||||
Contractual interest expense | $ 898 | $ 898 | $ 2,695 | $ 1,248 |
Amortization of debt discount | 0 | 2,943 | 0 | 4,088 |
Amortization of debt issuance costs | 452 | 292 | 1,350 | 405 |
Total interest expense related to the Notes | $ 1,350 | $ 4,133 | $ 4,045 | $ 5,741 |
Deferred Revenue and Performa_3
Deferred Revenue and Performance Obligations - Deferred Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Increase (Decrease) In Contract with Customer, Liability [Roll Forward] | ||||
Deferred revenue, beginning of period | $ 134,002 | $ 101,180 | $ 129,972 | $ 92,569 |
Billings | 80,608 | 57,636 | 215,765 | 166,747 |
Deferred revenue assumed in the Rundeck acquisition | 0 | 2,680 | 0 | 2,680 |
Revenue recognized | (71,760) | (53,772) | (202,887) | (154,272) |
Deferred revenue, end of period | $ 142,850 | $ 107,724 | $ 142,850 | $ 107,724 |
Deferred Revenue and Performa_4
Deferred Revenue and Performance Obligations - Additional Information (Details) $ in Millions | Oct. 31, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Future estimated revenue related to performance obligations | $ 123 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-11-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period | 24 months |
Common Stock and Stockholders_3
Common Stock and Stockholders' Equity - Additional Information (Details) $ / shares in Units, $ in Thousands | Apr. 11, 2019purchase_period | Oct. 31, 2021USD ($)$ / sharesshares | Oct. 31, 2020USD ($)$ / shares | Oct. 31, 2021USD ($)equityIncentivePlan$ / sharesshares | Oct. 31, 2020USD ($)$ / sharesshares | Jan. 31, 2021shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of equity incentive plans | equityIncentivePlan | 2 | |||||
Number of shares authorized for grant (in shares) | shares | 23,156,318 | 23,156,318 | 18,059,506 | |||
Number of shares available for grant (in shares) | shares | 14,102,032 | 14,102,032 | 13,060,282 | |||
Weighted average grant date fair value of stock options (in dollars per share) | $ / shares | $ 19.01 | $ 23.04 | $ 18.76 | $ 14.64 | ||
Aggregate intrinsic value of stock options exercised | $ 27,300 | $ 19,000 | $ 73,400 | $ 42,000 | ||
Unrecognized compensation cost related to unvested stock options | 21,600 | 21,600 | ||||
Stock-based compensation expense | 17,778 | 13,459 | $ 47,866 | 31,735 | ||
One-time stock-based compensation expense related to modification of certain option awards | 3,100 | 3,100 | ||||
Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation cost related to unvested awards, period for recognition | 2 years 3 months 18 days | |||||
RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation cost related to unvested awards, period for recognition | 3 years 1 month 6 days | |||||
Unrecognized compensation cost related to unvested RSUs | 208,200 | $ 208,200 | ||||
Awards granted (in shares) | shares | 4,097,275 | |||||
Weight-average grant date fair value (in dollars per share) | $ / shares | $ 41.79 | |||||
PSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation cost related to unvested awards, period for recognition | 1 year 3 months 18 days | |||||
Unrecognized compensation cost related to unvested RSUs | $ 3,000 | $ 3,000 | ||||
Awards granted (in shares) | shares | 127,309 | |||||
Weight-average grant date fair value (in dollars per share) | $ / shares | $ 41.17 | |||||
Vesting period | 3 years | |||||
ESPP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares available for grant (in shares) | shares | 2,721,649 | 2,721,649 | ||||
Offering period | 24 months | |||||
Number of purchase periods within each offering period | purchase_period | 4 | |||||
Purchase period | 6 months | |||||
Purchase price as a percentage of fair market value of stock on the offering date or the purchase date | 85.00% | |||||
Stock-based compensation expense | $ 800 | 1,100 | $ 3,900 | 3,900 | ||
Amount withheld on behalf of employees for future purchase | $ 2,200 | $ 1,700 | $ 7,200 | $ 5,200 | ||
Shares purchased (in shares) | shares | 222,474 | 181,253 | ||||
Purchase price (in dollars per share) | $ / shares | $ 21.98 | $ 19.63 | $ 21.98 | $ 19.63 |
Common Stock and Stockholders_4
Common Stock and Stockholders' Equity - Shares Available for Issuance (Details) - shares | Oct. 31, 2021 | Jan. 31, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for grant (in shares) | 14,102,032 | 13,060,282 |
Total common stock reserved at period end (in shares) | 32,386,704 | |
Stock options, RSUs and PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding stock options and unvested RSUs outstanding (in shares) | 15,563,023 | |
Number of shares available for grant (in shares) | 14,102,032 | |
ESPP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for grant (in shares) | 2,721,649 |
Common Stock and Stockholders_5
Common Stock and Stockholders' Equity - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Oct. 31, 2021 | Jan. 31, 2021 | |
Number of Shares | ||
Outstanding, beginning balance (in shares) | 11,177,838 | |
Granted (in shares) | 151,296 | |
Exercised (in shares) | (2,010,991) | |
Canceled (in shares) | (323,928) | |
Outstanding, ending balance (in shares) | 8,994,215 | 11,177,838 |
Vested (in shares) | 6,831,241 | |
Weighted Average Exercise Price | ||
Outstanding, beginning balance (in dollars per share) | $ 8.25 | |
Granted (in dollars per share) | 42.05 | |
Exercised (in dollars per share) | 6.19 | |
Canceled (in dollars per share) | 17.81 | |
Outstanding, ending balance (in dollars per share) | 8.94 | $ 8.25 |
Vested (in dollars per share) | $ 6.49 | |
Weighted Average Remaining Contractual Term | ||
Outstanding | 6 years 3 months 18 days | 6 years 10 months 24 days |
Vested | 5 years 10 months 24 days | |
Aggregate Intrinsic Value | ||
Outstanding | $ 295,119 | $ 452,452 |
Vested | $ 240,896 |
Common Stock and Stockholders_6
Common Stock and Stockholders' Equity - Assumptions Used to Calculate Fair Value of Employee Stock Option Grants Made (Details) | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected dividend yield | 0.00% | |||
Employee | Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Expected volatility | 46.00% | |||
Expected volatility, minimum | 43.00% | 43.80% | 43.00% | |
Expected volatility, maximum | 44.10% | 46.50% | 44.10% | |
Expected term (years) | 6 years 1 month 6 days | 6 years 1 month 6 days | ||
Risk-free interest rate | 1.11% | |||
Risk-free interest rate, minimum | 0.20% | 1.04% | 0.20% | |
Risk-free interest rate, maximum | 0.39% | 1.16% | 0.47% | |
Employee | Stock options | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (years) | 3 years 8 months 12 days | 3 years 8 months 12 days | ||
Employee | Stock options | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (years) | 6 years 1 month 6 days | 6 years 1 month 6 days |
Common Stock and Stockholders_7
Common Stock and Stockholders' Equity - Restricted Stock Units and Performance Stock Units Activity (Details) | 9 Months Ended |
Oct. 31, 2021$ / sharesshares | |
RSUs | |
Number of Awards | |
Outstanding, beginning balance (in shares) | shares | 3,971,128 |
Granted (in shares) | shares | 4,097,275 |
Vested, net of shares withheld for employee payroll taxes (in shares) | shares | (677,323) |
Canceled (in shares) | shares | (1,057,674) |
Outstanding, ending balance (in shares) | shares | 6,333,406 |
Weighted Average Grant Date Fair Value Per Share | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 23.60 |
Granted (in dollars per share) | $ / shares | 41.79 |
Vested, net of shares withheld for employee payroll taxes (in dollars per share) | $ / shares | 25.31 |
Canceled (in dollars per share) | $ / shares | 27.65 |
Outstanding, ending balance (in dollars per share) | $ / shares | $ 34.50 |
PSUs | |
Number of Awards | |
Outstanding, beginning balance (in shares) | shares | 0 |
Granted (in shares) | shares | 127,309 |
Vested, net of shares withheld for employee payroll taxes (in shares) | shares | 0 |
Canceled (in shares) | shares | (9,608) |
Outstanding, ending balance (in shares) | shares | 117,701 |
Weighted Average Grant Date Fair Value Per Share | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 41.17 |
Vested, net of shares withheld for employee payroll taxes (in dollars per share) | $ / shares | 0 |
Canceled (in dollars per share) | $ / shares | 41.17 |
Outstanding, ending balance (in dollars per share) | $ / shares | $ 41.17 |
Common Stock and Stockholders_8
Common Stock and Stockholders' Equity - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 17,778 | $ 13,459 | $ 47,866 | $ 31,735 |
Cost of revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 861 | 488 | 2,560 | 1,095 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 6,183 | 2,807 | 16,230 | 7,459 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 4,606 | 6,254 | 12,961 | 11,409 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 6,128 | $ 3,910 | $ 16,115 | $ 11,772 |
Net Loss Per Share - Calculatio
Net Loss Per Share - Calculation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Numerator: | ||||
Net loss | $ (26,341) | $ (20,608) | $ (78,560) | $ (46,755) |
Denominator: | ||||
Weighted average shares used in calculating net loss per share, diluted (in shares) | 85,092 | 79,937 | 83,979 | 78,835 |
Weighted Average Number of Shares Outstanding, Basic | 85,092 | 79,937 | 83,979 | 78,835 |
Net loss per share, basic (in dollars per share) | $ (0.31) | $ (0.26) | $ (0.94) | $ (0.59) |
Net loss per share, diluted (in dollars per share) | $ (0.31) | $ (0.26) | $ (0.94) | $ (0.59) |
Net Loss Per Share - Anti-dilut
Net Loss Per Share - Anti-dilutive Securities (Details) - shares shares in Thousands | 9 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 22,923 | 23,720 |
Shares subject to outstanding common stock awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 15,448 | 15,995 |
Convertible senior notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 7,173 | 7,173 |
Restricted stock awards purchased with promissory notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 124 |
Restricted stock issued to Rundeck key personnel | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 139 | 278 |
Shares issuable pursuant to the 2019 employee stock purchase plan | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 163 | 150 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 150 | $ (4,839) | $ 378 | $ (4,360) |
Geographic Information - Revenu
Geographic Information - Revenue by Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 71,760 | $ 53,772 | $ 202,887 | $ 154,272 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 54,287 | 40,966 | 153,048 | 118,234 |
International | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 17,473 | $ 12,806 | $ 49,839 | $ 36,038 |
Geographic Information - Additi
Geographic Information - Additional Information (Details) - Long-Lived Assets - Geographic Concentration Risk | 9 Months Ended | 12 Months Ended |
Oct. 31, 2021 | Jan. 31, 2021 | |
United States | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 84.00% | 87.00% |
Canada | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 16.00% | 13.00% |