Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Jan. 31, 2022 | Mar. 15, 2022 | Jul. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 31, 2022 | ||
Current Fiscal Year End Date | --01-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-38856 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3.2 | ||
Entity Common Stock, Shares Outstanding | 87,058,220 | ||
Documents Incorporated by Reference | Information required in response to Part III of Form 10-K (Items 10, 11, 12, 13 and 14) is hereby incorporated by reference to portions of the Registrant’s Proxy Statement for the Annual Meeting of Stockholders to be held in 2022. The Proxy Statement will be filed by the Registrant with the Securities and Exchange Commission no later than 120 days after the end of the Registrant’s fiscal year ended January 31, 2022. | ||
Entity Central Index Key | 0001568100 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Jan. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | San Francisco, California |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 349,785 | $ 339,166 |
Investments | 193,571 | 221,112 |
Accounts receivable, net of allowance for credit losses of $1,809 and $1,188 as of January 31, 2022 and January 31, 2021, respectively | 75,279 | 55,119 |
Deferred contract costs, current | 16,672 | 12,330 |
Prepaid expenses and other current assets | 9,777 | 10,587 |
Total current assets | 645,084 | 638,314 |
Property and equipment, net | 18,229 | 12,639 |
Deferred contract costs, non-current | 26,159 | 19,257 |
Lease right-of-use assets | 20,227 | 24,691 |
Goodwill | 72,126 | 72,126 |
Intangible assets, net | 23,133 | 26,633 |
Other assets | 1,490 | 1,783 |
Total assets | 806,448 | 795,443 |
Current liabilities: | ||
Accounts payable | 9,505 | 5,747 |
Accrued expenses and other current liabilities | 13,640 | 9,627 |
Accrued compensation | 35,327 | 28,372 |
Deferred revenue, current | 162,881 | 123,686 |
Lease liabilities, current | 5,637 | 5,262 |
Total current liabilities | 226,990 | 172,694 |
Convertible senior notes, net | 281,069 | 217,528 |
Deferred revenue, non-current | 7,343 | 6,286 |
Lease liabilities, non-current | 20,912 | 26,542 |
Other liabilities | 3,159 | 5,666 |
Total liabilities | 539,473 | 428,716 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity: | ||
Common stock, $0.000005 par value per share: 1,000,000,000 shares authorized as of January 31, 2022 and 2021; 86,758,380 and 82,882,424 shares issued and outstanding as of January 31, 2022 and 2021, respectively | 0 | 0 |
Additional paid-in capital | 616,467 | 614,494 |
Accumulated other comprehensive (loss) income | (669) | 343 |
Accumulated deficit | (348,823) | (248,110) |
Total stockholders’ equity | 266,975 | 366,727 |
Total liabilities and stockholders’ equity | $ 806,448 | $ 795,443 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 1,809 | $ 1,188 |
Common stock, par value per share (in dollars per share) | $ 0.000005 | $ 0.000005 |
Common stock, shares authorized (in shares) | 1,000,000,000 | |
Common stock, shares issued (in shares) | 86,758,380 | 82,882,424 |
Common stock, shares outstanding (in shares) | 86,758,380 | 82,882,424 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Income Statement And Statement Of Comprehensive Income [Abstract] | |||
Revenue | $ 281,396 | $ 213,556 | $ 166,351 |
Cost of revenue | 48,361 | 30,686 | 24,579 |
Gross profit | 233,035 | 182,870 | 141,772 |
Operating expenses: | |||
Research and development | 95,690 | 64,566 | 49,011 |
Sales and marketing | 161,624 | 122,155 | 97,350 |
General and administrative | 77,432 | 62,431 | 50,970 |
Total operating expenses | 334,746 | 249,152 | 197,331 |
Loss from operations | (101,711) | (66,282) | (55,559) |
Interest income | 2,946 | 4,232 | 5,692 |
Interest expense | (5,398) | (9,965) | 0 |
Other (expense) income, net | (2,757) | (794) | 203 |
Loss before (provision for) benefit from income taxes | (106,920) | (72,809) | (49,664) |
(Provision for) benefit from income taxes | (535) | 3,906 | (675) |
Net loss | (107,455) | (68,903) | (50,339) |
Other comprehensive gain: | |||
Unrealized (loss) gain on investments | (1,012) | 206 | 137 |
Total comprehensive loss | $ (108,467) | $ (68,697) | $ (50,202) |
Net loss per share, basic (in dollars per share) | $ (1.27) | $ (0.87) | $ (0.77) |
Net loss per share, diluted (in dollars per share) | $ (1.27) | $ (0.87) | $ (0.77) |
Weighted average shares used in calculating net loss per share, basic (in shares) | 84,514 | 79,614 | 65,544 |
Weighted average shares used in calculating net loss per share, diluted (in shares) | 84,514 | 79,614 | 65,544 |
Consolidated Statements of Rede
Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) - 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 | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment |
Beginning balance (in shares) at Jan. 31, 2019 | 41,273,345 | |||||||
Beginning balance at Jan. 31, 2019 | $ 173,023 | |||||||
Redeemable Convertible Preferred Stock | ||||||||
Conversion of convertible preferred stock to common stock in connection with initial public offering (in shares) | (41,273,345) | |||||||
Conversion of convertible preferred stock to common stock in connection with initial public offering | $ (173,023) | |||||||
Ending balance (in shares) at Jan. 31, 2020 | 0 | |||||||
Ending balance at Jan. 31, 2020 | $ 0 | |||||||
Beginning balance (in shares) at Jan. 31, 2019 | 23,189,921 | |||||||
Beginning balance at Jan. 31, 2019 | (68,930) | $ 0 | $ 59,938 | $ 0 | $ (128,868) | |||
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) | 2,519,899 | |||||||
Issuance of common stock upon exercise of stock options and restricted stock agreements, net of repurchases | 7,187 | 7,187 | ||||||
Vesting of restricted stock units, net of shares withheld for employee payroll taxes (in shares) | 1,293 | |||||||
Vesting of restricted stock units, net of shares withheld for employee payroll taxes | (16) | (16) | ||||||
Exercise of common stock warrants (in shares) | 737,807 | |||||||
Exercise of common stock warrants | 0 | |||||||
Repayment of promissory note | 515 | 515 | ||||||
Issuance of common stock in connection with initial public offering, net of underwriting discounts and issuance costs (in shares) | 9,860,500 | |||||||
Issuance of common stock in connection with initial public offering, net of underwriting discounts and issuance costs | 213,697 | 213,697 | ||||||
Conversion of convertible preferred stock to common stock in connection with initial public offering (in shares) | 41,273,345 | |||||||
Conversion of convertible preferred stock to common stock in connection with initial public offering | $ 173,023 | 173,023 | ||||||
Issuance of common stock in connection with the Employee Stock Purchase Program (in shares) | 210,775 | 210,775 | ||||||
Issuance of common stock in connection with the Employee Stock Purchase Plan | $ 4,117 | 4,117 | ||||||
Vesting of early exercised options | 1,342 | 1,342 | ||||||
Stock-based compensation | 27,205 | 27,205 | ||||||
Other comprehensive income | 137 | 137 | ||||||
Net loss | (50,339) | (50,339) | ||||||
Ending balance (in shares) at Jan. 31, 2020 | 77,793,540 | |||||||
Ending balance at Jan. 31, 2020 | $ 307,938 | $ 0 | 487,008 | 137 | (179,207) | |||
Ending balance (in shares) at Jan. 31, 2021 | 0 | |||||||
Ending balance at Jan. 31, 2021 | $ 0 | |||||||
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) | 2,908,262 | |||||||
Issuance of common stock upon exercise of stock options and restricted stock agreements, net of repurchases | 14,107 | 14,107 | ||||||
Vesting of restricted stock units, net of shares withheld for employee payroll taxes (in shares) | 379,129 | |||||||
Vesting of restricted stock units, net of shares withheld for employee payroll taxes | $ (8,207) | (8,207) | ||||||
Issuance of common stock in connection with the Employee Stock Purchase Program (in shares) | 301,842 | 301,842 | ||||||
Issuance of common stock in connection with the Employee Stock Purchase Plan | $ 5,986 | 5,986 | ||||||
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 | 38,936 | 38,936 | ||||||
Stock-based compensation | 43,387 | 43,387 | ||||||
Other comprehensive income | 206 | 206 | ||||||
Net loss | $ (68,903) | (68,903) | ||||||
Ending balance (in shares) at Jan. 31, 2021 | 82,882,424 | 82,882,424 | ||||||
Ending balance at Jan. 31, 2021 | $ 366,727 | $ (61,736) | $ 0 | 614,494 | $ (68,478) | 343 | (248,110) | $ 6,742 |
Ending balance (in shares) at Jan. 31, 2022 | 0 | |||||||
Ending balance at Jan. 31, 2022 | $ 0 | |||||||
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) | 2,603,432 | |||||||
Issuance of common stock upon exercise of stock options and restricted stock agreements, net of repurchases | 15,099 | 15,099 | ||||||
Vesting of restricted stock units, net of shares withheld for employee payroll taxes (in shares) | 925,400 | |||||||
Vesting of restricted stock units, net of shares withheld for employee payroll taxes | $ (23,586) | (23,586) | ||||||
Issuance of common stock in connection with the Employee Stock Purchase Program (in shares) | 345,051 | 345,051 | ||||||
Issuance of common stock in connection with the Employee Stock Purchase Plan | $ 7,742 | 7,742 | ||||||
Shares issued related to a business combination (in shares) | 2,073 | |||||||
Stock-based compensation | 71,196 | 71,196 | ||||||
Other comprehensive income | (1,012) | (1,012) | ||||||
Net loss | $ (107,455) | (107,455) | ||||||
Ending balance (in shares) at Jan. 31, 2022 | 86,758,380 | 86,758,380 | ||||||
Ending balance at Jan. 31, 2022 | $ 266,975 | $ 0 | $ 616,467 | $ (669) | $ (348,823) |
Consolidated Statements of Re_2
Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Parenthetical) | Jan. 31, 2021 |
Statement of Stockholders' Equity [Abstract] | |
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2020-06 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | ||
Cash flows from operating activities | ||||
Net loss | $ (107,455) | $ (68,903) | $ (50,339) | |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||
Depreciation and amortization | 8,356 | 5,270 | 2,337 | |
Amortization of deferred contract costs | 14,923 | 10,977 | 7,780 | |
Stock-based compensation | 70,033 | 43,231 | 27,205 | |
Amortization of debt discount and issuance costs | [1] | 1,805 | 7,808 | 0 |
Noncash lease expense | 4,464 | 4,398 | 0 | |
Other | 3,770 | 2,518 | (331) | |
Changes in operating assets and liabilities: | ||||
Accounts receivable | (21,594) | (17,637) | (3,601) | |
Deferred contract costs | (26,167) | (16,876) | (15,996) | |
Prepaid expenses and other assets | 1,279 | (2,022) | (2,112) | |
Accounts payable | 2,901 | 316 | (1,110) | |
Accrued expenses and other liabilities | (99) | (810) | 3,668 | |
Accrued compensation | 6,766 | 11,184 | 3,861 | |
Deferred revenue | 40,252 | 34,723 | 28,465 | |
Lease liabilities | (5,255) | (4,082) | 0 | |
Net cash (used in) provided by operating activities | (6,021) | 10,095 | (173) | |
Cash flows from investing activities | ||||
Purchases of property and equipment | (3,457) | (4,038) | (5,174) | |
Capitalized internal-use software costs | (3,353) | (810) | 0 | |
Business acquisition, net of cash acquired | (160) | (49,656) | 0 | |
Purchases of held-to-maturity investments | 0 | 0 | (45,736) | |
Proceeds from maturities of held-to-maturity investments | 0 | 28,040 | 17,950 | |
Purchases of available-for-sale investments | (197,093) | (222,042) | (224,110) | |
Proceeds from maturities of available-for-sale investments | 194,059 | 189,901 | 25,000 | |
Proceeds from sales of available-for-sale investments | 27,380 | 9,285 | 0 | |
Net cash provided by (used in) investing activities | 17,376 | (49,320) | (232,070) | |
Cash flows from financing activities | ||||
Proceeds from issuance of convertible senior notes, net of issuance costs paid of $9,302 | 0 | 278,198 | 0 | |
Purchases of capped calls related to convertible senior notes | 0 | (35,708) | 0 | |
Proceeds from initial public offering, net of underwriters' discounts and commissions | 0 | 0 | 220,086 | |
Payments of costs related to initial public offering | 0 | 0 | (5,945) | |
Proceeds from repayment of promissory note | 0 | 0 | 515 | |
Proceeds from issuance of common stock upon exercise of stock options | 15,108 | 14,098 | 7,187 | |
Proceeds from Employee Stock Purchase Plan | 7,742 | 5,986 | 4,117 | |
Employee payroll taxes paid related to net share settlement of restricted stock units | (23,586) | (8,207) | (16) | |
Net cash (used in) provided by financing activities | (736) | 254,367 | 225,944 | |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 10,619 | 215,142 | (6,299) | |
Cash, cash equivalents, and restricted cash at beginning of period | 339,166 | 124,024 | 130,323 | |
Cash, cash equivalents, and restricted cash at end of period | 349,785 | 339,166 | 124,024 | |
Supplemental cash flow data: | ||||
Cash paid for interest | 1,797 | 1,857 | 0 | |
Cash paid for taxes | 324 | 4 | 73 | |
Non-cash investing and financing activities: | ||||
Vesting of early exercised options | 0 | 507 | 1,342 | |
Fair value of common stock issued as consideration for a business combination | 0 | 38,936 | 0 | |
Purchase of property and equipment, accrued but not yet paid | 2,666 | 572 | 1,463 | |
Payments related to a business acquisition, accrued but not yet paid | 0 | 160 | 0 | |
Stock-based compensation capitalized in internal use software | 1,163 | 156 | 0 | |
Non-cash additions of property and equipment | $ 0 | $ 0 | $ 2,212 | |
[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. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands | 12 Months Ended |
Jan. 31, 2022USD ($) | |
Statement of Cash Flows [Abstract] | |
Issuance of convertible senior notes, issuance costs paid | $ 9,302 |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Jan. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Description of Business PagerDuty, Inc. was incorporated under the laws of the state of Delaware in May 2010. PagerDuty is a digital operations management platform that manages urgent and mission-critical work for a modern, digital business. PagerDuty collects data and digital signals from virtually any software-enabled system or device and leverage powerful machine learning to correlate, process, and predict opportunities and issues. Using incident response, event management, and automation, we bring together the right people with the right information so they can resolve issues and act on opportunities in minutes or seconds from wherever they are. As used herein, “PagerDuty”, “we”, “our”, “the Company” and similar terms include PagerDuty, Inc., unless the context indicates otherwise. Initial Public Offering On April 15, 2019, the Company completed its initial public offering (“IPO”), pursuant to which the Company issued and sold 9,860,500 shares of common stock, inclusive of the over-allotment option, at a public offering price of $24.00 per share. The Company received net proceeds of $213.7 million, after deducting underwriters' discounts and commissions of $16.6 million and other issuance costs of $6.4 million. Immediately prior to the closing of the Company’s IPO, all shares of the redeemable convertible preferred stock automatically converted into 41,273,345 shares of common stock. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and include the consolidated accounts of PagerDuty. All intercompany balances and transactions have been eliminated upon consolidation. The Company’s fiscal year ends on January 31. References to fiscal 2022, for example, refer to the fiscal year ended 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 credit losses, 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 consolidated financial statements during the years ended January 31, 2022 and 2021. 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 | 12 Months Ended |
Jan. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting PoliciesSegment 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 14, “Geographic Information” for information regarding the Company's long-lived assets and revenue by geography. Revenue Recognition The Company generates revenue primarily from cloud-hosted subscription fees with the majority of its revenue from such arrangements. The Company also generates revenue from term-license software subscription fees. Revenue is recognized when control of these services is transferred to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. The Company accounts for revenue contracts with customers by applying the requirements of Topic 606, which includes the following steps: • Identification of the contract, or contracts, with a customer. • Identification of the performance obligations in the contract. • Determination of the transaction price. • Allocation of the transaction price to the performance obligations in the contract. • Recognition of revenue when, or as, the Company satisfies a performance obligation. Cloud-hosted software subscriptions The Company’s cloud-hosted software subscriptions allow customers to use its cloud-hosted software over the contract period without taking possession of the software. The Company’s cloud-hosted software subscription agreements generally have monthly or annual contractual terms. Revenue related to our cloud-hosted software subscriptions is recognized ratably over the related contractual term beginning on the date that the Company’s platform is made available to a customer. Access to the platform represents a series of distinct services as the Company continually provides access to, and fulfills its obligation to, the end customer over the subscription term. The series of distinct services represents a single performance obligation that is satisfied over time. The Company recognizes revenue ratably because the customer receives and consumes the benefits of the platform throughout the contract period. Term-license software subscriptions The Company’s term license software subscriptions provide both an obligation to provide access to its on-premise software, which includes both open source and proprietary features, as well as an obligation to provide support and maintenance. The Company’s term-license software subscription agreements generally have annual contractual terms. The Company accounts for the license to the software and support as two separate performance obligations. As the open source software is publicly available at no cost to the customer, the Company has determined that there is no value to be assigned to the open source software in the term-license software subscription arrangements. The proprietary software license represents a promise to provide a license to use functional intellectual property that is recognized at a point in time on the date access to the software is made available to the customer and the term-license software subscription period has begun. The Company has concluded the support is a stand-ready performance obligation that consists of a series of distinct services that are satisfied ratably over time as the services are provided. The Company uses a time-based output method to measure progress because efforts are expended evenly throughout the period given the nature of the promise is a stand-ready service. The Company recognizes support revenue ratably, typically beginning on the start of the contractual term of the arrangement. Cloud-hosted and term license software subscriptions In order to determine the stand-alone selling price, the Company conducts a periodic analysis that requires judgment and considers multiple factors that are reasonably available and maximizes the use of observable inputs that may vary over time depending upon the unique facts and circumstances related to each performance obligation. To have observable inputs, the Company requires that a substantial majority of the stand-alone selling prices for a product offering fall within a pricing range. If a directly observable stand-alone selling price does not exist, the Company estimates a stand-alone selling price range by reviewing external and internal market factor categories, which may include pricing practices, historical discounting, industry practices, service groups, and geographic considerations. The Company believes that these analyses result in an estimate that approximates the price the Company would charge for the performance obligations if they were sold separately. The Company’s cloud-hosted and term-license software subscription arrangements are generally non-cancellable and do not contain refund provisions. The Company bills for monthly cloud-hosted and term-license software subscriptions on a monthly basis and annually in advance for arrangements with terms of one year or more. The price of the cloud-hosted and term-license software subscriptions is generally fixed at contract inception and therefore, the Company’s contracts do not contain a significant amount of variable consideration. As a result, the amount of revenue recognized in the periods presented from performance obligations satisfied (or partially satisfied) in previous periods due to changes in the transaction price was not material. The Company’s revenue excludes sales and other indirect taxes. Accounts Receivable and Related Allowance for Credit Losses Accounts receivable are recorded at the invoiced amount, net of allowances for credit losses. The allowance is based upon historical loss patterns, customer credit quality, the age of each past due invoice, and an evaluation of the potential risk of loss associated with delinquent accounts. The allowance also reflects current market conditions and reasonable and supportable forecasts of future economic conditions. As of January 31, 2022, the allowance reflects considerations related to the COVID-19 pandemic. The allowance for credit losses was $1.8 million and $1.2 million as of January 31, 2022 and January 31, 2021. Activity related to the Company’s allowance for credit losses on accounts receivable was as follows: Amount (in thousands) Balance as of January 31, 2020 $ 810 Charged to bad debt expense 1,188 Write-offs, net of recoveries (810) Balance as of January 31, 2021 $ 1,188 Charged to bad debt expense 1,099 Write-offs, net of recoveries (478) Balance as of January 31, 2022 $ 1,809 Deferred Revenue The Company records contract liabilities to deferred revenue when amounts are invoiced in advance of performance. Deferred revenue consists of the unearned portion of customer billings. The Company’s payment terms generally provide for payment within 30 days of the invoice date. Amounts anticipated to be recognized within one year of the balance sheet date are recorded as deferred revenue, current; the remaining portion is recorded as deferred revenue, non-current in the consolidated balance sheets. The Company applied the practical expedient in Topic 606 and did not evaluate contracts of one year or less for the existence of a significant financing component. For contracts with terms of more than a year, the Company has determined its contracts generally do not include a significant financing component as these all relate to contracts that are billed annually in advance. The primary purpose of the Company’s invoicing terms is to provide customers with simplified and predictable ways of purchasing the Company’s cloud- hosted software subscription, not to receive financing from its customers or to provide customers with financing. Deferred Contract Costs Deferred contract costs consist of sales commissions earned by the Company’s sales force which are considered incremental and recoverable costs of obtaining a contract with a customer. The Company determined that sales commissions that are related to contract renewals are not commensurate with commissions earned on the initial contract. Accordingly, sales commissions for initial contracts are deferred and then amortized on a straight-line basis over a period of benefit that the Company has determined to be four years. The Company determined the period of benefit by taking into consideration its customer contracts, technology, and other factors. Amounts anticipated to be recognized within one year of the balance sheet date are recorded as deferred contract costs, current; the remaining portion is recorded as deferred contract costs, noncurrent in the consolidated balance sheets. Deferred contract costs are periodically reviewed for impairment. Amortization of deferred contract costs is included in sales and marketing expense in the consolidated statements of operations. Deferred contract costs on the Company’s consolidated balance sheets were $42.8 million and $31.6 million as of January 31, 2022 and 2021, respectively. Amortization expense was $14.9 million, $11.0 million, and $7.8 million for the fiscal years ended January 31, 2022, 2021, and 2020, respectively. There was no impairment loss in relation to the costs capitalized for the periods presented. The following table represents a rollforward of the Company’s deferred contract costs: Amount (in thousands) Balance as of January 31, 2020 $ 25,688 Additions to deferred contract costs 16,876 Amortization of deferred contract costs (10,977) Balance as of January 31, 2021 $ 31,587 Additions to deferred contract costs 26,167 Amortization of deferred contract costs (14,923) Balance as of January 31, 2022 $ 42,831 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, United States (“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 more than 10% of the total accounts receivable balance as of January 31, 2022 or 2021. No single customer represented 10% or more of revenue for the fiscal years ended January 31, 2022, 2021, or 2020. Cost of Revenue Cost of revenue primarily consists of expenses related to providing the Company’s cloud- hosted software subscription to customers, including personnel expenses for operations and global support, payments to our third-party cloud infrastructure providers for hosting the Company’s software, payment processing fees, amortization of capitalized internal-use software costs, amortization of acquired developed technology, and allocated overhead costs for facilities, information technology, and other allocated overhead costs. Foreign Currency Remeasurement The functional currency of the Company’s international subsidiaries is the United States dollar. Accordingly, monetary balance sheet accounts are remeasured using exchange rates in effect at the balance sheet dates and non-monetary items are remeasured at historical exchange rates. Revenue and expenses are remeasured at the average exchange rates for the period. Foreign currency transaction gains and losses are included in other income, net and were not material for the fiscal years ended January 31, 2022, 2021, or 2020. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, highly liquid investments with original maturities of three months or less from the date of purchase, and money market funds. Investments The Company’s investments are classified as available-for-sale and consist of highly liquid investments, primarily U.S. Treasury securities, commercial paper, and corporate debt securities. The Company determines the appropriate classification of its investments at the time of purchase and reevaluates such designation at each balance sheet date. The Company periodically evaluates its short-term investments to assess whether those with unrealized loss positions are impaired. The Company considers various factors in determining whether to recognize an impairment charge, including the extent to which the fair value is less than the Company’s cost basis, the financial condition of the issuer and any changes thereto, and the Company’s intent to sell, or whether it is more likely than not that the Company will be required to sell, the investment before recovery of the investment’s amortized cost. If the Company determines that the investment is impaired, an impairment loss is recognized in earnings equal to the difference between the investment’s amortized cost and fair value at such date. Realized gains and losses are reported in other income, net, in the consolidated statements of operations. No impairment charges have been recognized to date. Available-for-sale The Company classifies its available-for-sale investments, including those with stated maturities beyond twelve months, as short-term based on their highly liquid nature and because they represent the investment of cash that is available for current operations. In addition, the Company may sell these investments at any time for use in its current operations or for other purposes, even prior to maturity. The Company's available-for-sale investments are recorded at fair market value each reporting period. Unrealized gains and losses on these available-for-sale investments are reported as a separate component of accumulated other comprehensive income in the accompanying consolidated balance sheet until realized. 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 revenues from the sales of its product to related parties of $2.5 million, $1.1 million and $1.0 million in the fiscal years ended January 31, 2022, 2021, and 2020, respectively, and billings of $2.2 million and $1.1 million in the fiscal years ended January 31, 2022 and 2021, respectively. Additionally, the Company recognized expenses related to purchases $1.2 million and had $1.1 million in cash disbursements to these companies during the fiscal year ended January 31, 2021. Other related party transactions were not material for the fiscal years ended January 31, 2022, 2021, or 2020. Property and Equipment, Net Property and equipment, net, are stated at cost less accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of the respective assets, which is generally three Property and equipment is reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If property and equipment are considered impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair value. If the estimated useful life assumption is reduced for any asset, the remaining unamortized balance would be amortized or depreciated over the revised estimated useful life. Research and Development Expense Research and development expenses consist primarily of personnel costs for the Company’s engineering, product, and design teams. Additionally, research and development expenses include contractor fees, depreciation of equipment used in research and development activities, acquisition-related expenses, and allocated overhead costs. Research and development costs are expensed as incurred. Internal-Use Software Costs The Company evaluates costs related to the development of its platform and certain projects for internal use incurred during the application development stage. Costs related to preliminary project activities and post-implementation activities are expensed as incurred and costs related to the application development stage are capitalized. Internal-use software is amortized on a straight-line basis over its estimated useful life, which is generally three years. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. The Company capitalized $4.7 million and $1.0 million during the fiscal years ended January 31, 2022 and 2021. No internal-use software costs were capitalized during the fiscal year ended January 31, 2020. Business Combinations The Company applies the acquisition method of accounting for business combinations. Under this method of accounting, all assets acquired and liabilities assumed are recorded at their respective fair values at the date of the acquisition. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and often involves the use of significant estimates and assumptions. These estimates can include, but are not limited to, the cash flows that an asset is expected to generate in the future, the appropriate weighted-average cost of capital, and the cost savings expected to be derived from acquiring an asset. Goodwill, Acquired Intangible Assets, and Impairment of Long-Lived Assets Goodwill. Goodwill represents the excess purchase consideration of an acquired business over the fair value of the net tangible and identifiable intangible assets. Goodwill is evaluated for impairment annually in the fourth quarter, and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. Triggering events that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate or a significant decrease in expected cash flows. No impairment charges were recorded during the fiscal years ended January 31, 2022, 2021, or 2020. Acquired Intangible Assets. Acquired intangible assets consist of identifiable intangible assets, primarily developed technology and customer relationships, resulting from the Company’s business acquisition. Intangible assets are recorded at fair value on the date of acquisition and amortized over their estimated useful lives. Impairment of Long-Lived Assets. The carrying amounts of the Company’s long-lived assets, including property and equipment, lease right-of-use assets, capitalized internal-use software, and acquired intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable or that the useful lives are shorter than originally estimated. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If long-lived assets are considered impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair value. If the Company reduces the estimated useful life assumption for any asset, the remaining unamortized balance would be amortized or depreciated over the revised estimated useful life. Advertising Costs Advertising costs are expensed as incurred and are included in sales and marketing expense. Advertising costs were $10.6 million, $10.1 million, and $5.1 million for the years ended January 31, 2022, 2021, and 2020, respectively. 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. Fair value of common stock 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. Income Taxes The Company accounts for income taxes using the asset and liability method. Under this method, the Company recognizes deferred income tax assets and liabilities for the expected future consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as for net operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. The Company recognizes the deferred income tax effects of a change in tax rates in the period of enactment. The Company records a valuation allowance to reduce its deferred tax assets to the net amount that it believes is more likely than not to be realized. The Company considers all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income and ongoing tax planning strategies in assessing the need for a valuation allowance. Realization of its deferred tax assets is dependent primarily upon future U.S. taxable income. The Company recognizes income tax benefits from uncertain tax positions only if it believes that it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such uncertain tax positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. Although the Company believes that it has adequately reserved for its uncertain tax positions (including net interest and penalties), it can provide no assurance that the final tax outcome of these matters will not be materially different. The Company makes adjustments to these reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made and could have a material impact on its financial position, results of operations, and cash flows. Net Loss Per Share Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period giving effect to all potentially dilutive securities to the extent they are dilutive. The dilutive effect of potentially dilutive securities is reflected in diluted net loss per share by application of the treasury stock method. Basic and diluted net loss per share of common stock were the same for each period presented as the inclusion of all potential shares of common stock outstanding would have been anti-dilutive. 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 Company will adopt ASU 2021-08 as of February 1, 2022 which will 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. Recently Adopted Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses (“Topic 326”) Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which requires an entity to utilize a new impairment model known as the current expected credit loss (“CECL”) model to estimate its lifetime “expected credit loss” and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in more timely recognition of credit losses. This guidance also requires new disclosures for financial assets measured at amortized cost, loans, and available-for-sale debt securities. The Company adopted the standard as of February 1, 2020, the beginning of the Company’s fiscal year ended January 31, 2021. The adoption of this guidance did not have a material impact to the consolidated financial statements. In connection with the adoption, for purposes of identifying and measuring impairment, the policy election was made to exclude accrued interest from both the fair value and amortized cost basis of our available-for sale debt securities. Such accrued interest is recorded in prepaid expenses and other current assets. In December 2019, the FASB issued Accounting Standards Update No. 2019-12, Income Taxes (“Topic 740”): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which is intends to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for the Company beginning in fiscal 2022, although early adoption is permitted. The Company early adopted the standard as of February 1, 2020, the beginning of the Company’s fiscal year ended January 31, 2021. The adoption of this guidance did not have a material impact to the consolidated financial statements. In August 2020, the FASB issued Accounting Standard Update No. 2020-06, Debt—Debt with Conversion Options (“Subtopic 470-20”) and Derivatives and Hedging—Contracts in Entity’s Own Equity (“Subtopic 815-40”) (“ASU 2020-06”), 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 consolidated balance sheets. Rather, the $287.5 million principal amount of the Company’s Convertible Notes was classified only as a liability in the consolidated balance sheets for the fiscal year ended January 31, 2022. 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 consolidated balance sheets as of February 1, 2021. The adoption did not affect the Company’s consolidated statements of operations or consolidated statements of cash flows. Refer to Note 8 , “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) |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Jan. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | Balance Sheet Components Cash, Cash Equivalents, and Investments Cash, cash equivalents, and investments consisted of the following: As of January 31, 2022 2021 (in thousands) Cash and cash equivalents Cash $ 268,091 $ 184,308 Money market funds 73,194 139,870 Commercial paper 5,500 — U.S. Treasury securities 3,000 14,988 Total cash and cash equivalents $ 349,785 $ 339,166 Available-for-sale investments: U.S. Treasury securities $ 41,105 $ 45,026 Commercial paper 39,483 34,598 Corporate debt securities 112,983 141,488 Total available-for-sale investments $ 193,571 $ 221,112 The following tables summarize the Company’s investments’ adjusted cost, net unrealized (losses) gains, and fair value by significant investment category as of January 31, 2022 and 2021. Gross realized gains or losses from sales of available-for-sale securities were not material for the fiscal years ended January 31, 2022 and 2021. As of January 31, 2022 Cost Basis Unrealized Loss, Net Recorded Basis (in thousands) Available-for-sale investments: U.S. Treasury securities $ 41,147 $ (42) $ 41,105 Commercial paper 39,528 (45) 39,483 Corporate debt securities 113,565 (582) 112,983 Total investments $ 194,240 $ (669) $ 193,571 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 investments $ 220,769 $ 343 $ 221,112 The following tables present the Company’s available-for-sale securities by contractual maturity date as of January 31, 2022 and 2021: As of January 31, 2022 Adjusted Cost Fair Value (in thousands) Due within one year $ 154,692 $ 154,455 Due between one to five years 39,548 39,116 $ 194,240 $ 193,571 January 31, 2021 Adjusted Cost Fair Value (in thousands) Due within one year $ 171,498 $ 171,837 Due between one to five years 49,271 49,275 $ 220,769 $ 221,112 As of January 31, 2022, there were 69 available-for-sale securities in an unrealized loss position, seven of which were in a continuous unrealized loss position for the last 12 months. The total unrealized loss related to securities in an unrealized loss position as of January 31, 2022 was $0.7 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 intent to sell, or whether it is more likely than not that the Company will be required to sell the investment before recovery of the investment’s amortized cost. No impairment loss has been recorded on the securities included in the tables above, as the Company believes that any decrease in fair value of these securities is temporary and the Company expects to recover at least up to the initial cost of the investment for these securities. The Company has not recorded an allowance for credit losses, as the Company believes any such losses would be immaterial based on the high-grade credit rating for each of its marketable securities as of the end of each period. Property and Equipment, Net Property and equipment, net consisted of the following: As of January 31, 2022 2021 (in thousands) Leasehold improvements $ 15,392 $ 12,767 Computers and equipment 7,483 6,562 Furniture and fixtures 4,686 3,017 Capitalized internal-use software 6,136 1,355 Gross property and equipment (1) $ 33,697 $ 23,701 Accumulated depreciation and amortization (15,468) (11,062) Property and equipment, net $ 18,229 $ 12,639 (1) Gross property and equipment includes construction-in-progress for leasehold improvements and capitalized internal-use software of $6.9 million and $1.5 million that had not yet been placed in service as of January 31, 2022 and January 31, 2021, respectively. The costs associated with construction-in-progress are not amortized until placed in service. Depreciation and amortization expense was $4.6 million, $3.8 million, and $2.2 million for the fiscal years ended January 31, 2022, 2021, and 2020, respectively. The carrying values of capitalized internal-use software were 5.2 million and 1.1 million for the fiscal years ended January 31, 2022 and 2021, respectively. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: As of January 31, 2022 2021 (in thousands) Accrued professional fees $ 3,790 $ 2,138 Accrued events 463 294 Accrued hosting and infrastructure 1,495 708 Accrued taxes 1,056 1,350 Accrued liabilities, other 6,836 5,137 Accrued expenses and other liabilities $ 13,640 $ 9,627 Accrued Compensation Accrued compensation consisted of the following: As of January 31, 2022 2021 (in thousands) Accrued bonuses $ 13,480 $ 8,657 Accrued compensation, other 21,847 19,715 Accrued compensation $ 35,327 $ 28,372 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 31, 2022 | |
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 January 31, 2022 Level 1 Level 2 Level 3 Total (in thousands) Money market funds $ 73,194 $ — $ — $ 73,194 U.S. Treasury securities 3,000 41,105 — 44,105 Commercial paper 5,500 39,483 — 44,983 Corporate debt securities — 112,983 — 112,983 Total $ 81,694 $ 193,571 $ — $ 275,265 Included in cash equivalents $ 81,694 Included in investments $ 193,571 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 January 31, 2022 and 2021, the Company’s Level 2 securities were based on indirect or directly observable market information, including readily available pricing sources for identical or comparable underlying securities that may not be actively traded. 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 January 31, 2022, the estimated fair value of the Notes was approximately $326.2 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. |
Business Combinations
Business Combinations | 12 Months Ended |
Jan. 31, 2022 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Year ended January 31, 2022 There were no business combinations in the year ended January 31, 2022. Year ended January 31, 2021 On October 1, 2020, the Company completed the acquisition of Rundeck Inc. (“Rundeck”), a leading provider of DevOps automation for enterprise. The acquisition of Rundeck strengthens the Company’s product and will enable the Company’s customers to resolve incidents faster, therefore reducing costs and protecting the customer experience. The Company acquired Rundeck for purchase consideration of $95.5 million in a combination of cash and common stock. The total purchase price consisted of the following: (in thousands) Cash paid or payable to common and preferred stockholders, warrant holders, and vested option holders $ 51,741 Fair value of common stock transferred 34,002 Fair value of assumed options and restricted stock attributable to pre-combination service (1) 4,934 Fair value of future cash payments to common stockholders attributable to pre-combination service 4,808 Total purchase consideration $ 95,485 (1) The restricted shares are considered to be legally issued and outstanding on the date of issuance. The fair value of the stock and options recognized as purchase consideration was determined using the closing price of the Company’s common stock on the acquisition date. In addition to the purchase consideration, a portion of cash and stock for certain Rundeck key personnel attributable to post-combination services is subject to vest over two years from the closing of the acquisition, subject to on-going employee services and achievement of certain performance conditions as follow: • $3.7 million in future cash payments beginning in the fourth quarter of fiscal year 2021, which the Company will recognize within research and development over the vesting period of two years. • $3.3 million related to the fair value of restricted stock issued that will vest beginning from the acquisition date, which the Company will recognize as stock-based compensation expense over the vesting period of two years. The restricted shares are considered to be legally issued and outstanding on the date of issuance. • In connection with the acquisition, the Company incurred transaction costs of $1.8 million within the general and administrative line of the Consolidated Statements of Operations. 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. The following table presents the preliminary purchase consideration allocation recorded in the Company’s consolidated balance sheet as of the acquisition date: (in thousands) Cash and cash equivalents $ 1,925 Accounts receivable and other assets 1,879 Intangible assets 27,800 Goodwill 72,126 Accounts payable and other liabilities (548) Deferred revenue (2,680) Deferred tax liabilities, net (5,017) Total purchase consideration $ 95,485 The goodwill was primarily attributed to the value of synergies created with the Company’s current and future offerings. Goodwill is not deductible for income tax purposes. In connection with the acquisition, the Company recognized a net deferred tax liability of approximately $5.0 million, generated primarily from the difference between the tax basis and fair value of the acquired intangible assets, which increased goodwill. As the Company had a full valuation allowance as of January 31, 2021, the Company recorded an income tax benefit for this net deferred tax liability in the consolidated statement of operations for the year ended January 31, 2021. Refer to Note 13, "Income Taxes" for further information. The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition: Fair Value Useful Life (in thousands) (in years) Customer relationships $ 21,800 10 Developed technology $ 5,600 5 Trademarks $ 400 2 The acquired intangible assets are primarily related to the Rundeck product and domain knowledge around customer data developed by Rundeck, and term-license software subscription contracts with customers. |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets | 12 Months Ended |
Jan. 31, 2022 | |
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. Intangible assets subject to amortization consist of the following: As of January 31, 2022 Cost Accumulated Amortization Net Weighted Average (in thousands) (in years) Customer relationships $ 21,800 $ (2,907) $ 18,893 8.7 Developed technology 5,600 (1,493) 4,107 3.7 Trademarks 400 (267) 133 0.7 Other intangibles, net $ 27,800 $ (4,667) $ 23,133 As of January 31, 2021 Cost Accumulated Amortization Net Weighted Average (in thousands) (in years) Customer relationships $ 21,800 $ (727) $ 21,073 9.7 Developed technology 5,600 (373) 5,227 4.7 Trademarks 400 (67) 333 1.7 Other intangibles, net $ 27,800 $ (1,167) $ 26,633 For the fiscal years ended January 31, 2022 and 2021, amortization expense related to intangible assets was $3.5 million and $1.2 million. No amortization expense was recorded during the fiscal year ended January 31, 2020. As of January 31, 2022, expected amortization expense in future periods is as follows: Year ending January 31, (in thousands) 2023 $ 3,433 2024 3,300 2025 3,300 2026 2,927 2027 2,180 Thereafter 7,993 Total expected future amortization expense $ 23,133 |
Leases
Leases | 12 Months Ended |
Jan. 31, 2022 | |
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 the consolidated balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The following tables present information about leases on the consolidated balance sheet. As of January 31, 2022 2021 (in thousands) Assets Lease right-of-use assets $ 20,227 24,691 Liabilities Lease liabilities 5,637 5,262 Lease liabilities, non-current 20,912 26,542 As of January 31, 2022 and 2021, the weighted average remaining lease term was 4.8 years and 5.7 years, respectively. As of January 31, 2022 and 2021, 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 consolidated statement of operations. Year Ended January 31, 2022 2021 (in thousands) Operating lease expense $ 5,574 $ 5,769 Short-term lease expense 756 879 Variable lease expense 939 1,325 The following table presents supplemental cash flow information about the Company’s leases. Year Ended January 31, 2022 2021 (in thousands) Cash paid for amounts included in the measurement of lease liabilities $ 6,319 $ 5,416 As of January 31, 2022, remaining maturities of lease liabilities are as follows: Year ending January 31, (in thousands) 2023 $ 6,512 2024 6,694 2025 6,894 2026 2,763 2027 2,441 Thereafter 3,819 Gross lease payments $ 29,123 Less: Imputed interest (2,574) Total $ 26,549 |
Debt and Financing Arrangements
Debt and Financing Arrangements | 12 Months Ended |
Jan. 31, 2022 | |
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 the Company, 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 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 $281.1 million as of January 31, 2022, with principal of $287.5 million, net of unamortized issuance costs of $6.4 million. The Notes are classified as long-term liabilities as of January 31, 2022. 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 January 31, 2022 (post-ASU 2020-06 adoption) and as of January 31, 2021 (pre-ASU 2020-06 adoption) is as follows: As of January 31, 2022 2021 (in thousands) Principal $ 287,500 $ 287,500 Less: unamortized debt discount — (63,664) Less: unamortized issuance costs (6,431) (6,308) Net carrying amount $ 281,069 $ 217,528 The net carrying amount of the equity component of the Notes as of January 31, 2022 (post-ASU 2020-06 adoption) and as of January 31, 2021 (pre-ASU 2020-06 adoption) is as follows: As of January 31, 2022 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 during the year ended January 31, 2022 (post-ASU 2020-06 adoption) and during the year ended January 31, 2021 (pre-ASU 2020-06 adoption) is as follows: Year Ended January 31, 2022 2021 (in thousands) Contractual interest expense $ 3,594 $ 2,157 Amortization of debt discount — 7,104 Amortization of debt issuance costs 1,804 704 Total interest expense related to the Notes $ 5,398 $ 9,965 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 consolidated balance sheet. The Capped Calls each has 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 | 12 Months Ended |
Jan. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contractual Commitments As of January 31, 2022, our contractual obligations are as follows for the years ending January 31: (in thousands) Operating Lease Obligations (1) Purchase Commitments (2) Senior Convertible Notes (3) Total 2023 $ 6,512 $ 28,525 $ 3,594 $ 38,631 2024 6,694 20,041 3,594 30,329 2025 6,894 15,987 3,594 26,475 2026 2,763 — 289,297 292,060 2027 2,441 — — 2,441 Thereafter 3,819 — — 3,819 Total $ 29,123 $ 64,553 $ 300,079 $ 393,755 (1) Represents obligations under non-cancellable lease agreements for our corporate headquarters and worldwide offices. (2) Primarily relates to contractual third-party services. (3) Includes principal and interest payments. For more information regarding our convertible senior notes, refer to Note 8, “Debt and Financing Arrangements” . 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 material effect on our consolidated balance sheets, consolidated statements of operations and comprehensive loss, or consolidated statements of cash flows. |
Deferred Revenue and Performanc
Deferred Revenue and Performance Obligations | 12 Months Ended |
Jan. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue and Performance Obligations | Deferred Revenue and Performance Obligations The following table presents the changes to the Company’s deferred revenue: Year Ended January 31, 2022 2021 2020 (in thousands) Deferred revenue, beginning of period $ 129,972 $ 92,569 $ 64,104 Billings 321,648 248,279 194,816 Deferred revenue assumed in the Rundeck acquisition — 2,680 — Revenue recognized (281,396) (213,556) (166,351) Deferred revenue, end of period $ 170,224 $ 129,972 $ 92,569 Approximately 44%, 41%, and 38% of total revenue recognized in the fiscal years ended January 31, 2022, 2021, and 2020 was from the deferred revenue balance as of January 31, 2021, 2020 and 2019, respectively. As of January 31, 2022, 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 $143.9 million. The Company expects to satisfy the substantial |
Common Stock and Stockholders'
Common Stock and Stockholders' Equity | 12 Months Ended |
Jan. 31, 2022 | |
Equity [Abstract] | |
Common Stock and Stockholders' Equity | Common Stock and Stockholders’ Equity 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 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 January 31, 2022 and January 31, 2021, respectively, the Company was authorized to grant up to 23,343,378 shares and 18,059,506 shares of common stock under the Stock Plans. In March 2019, the Company granted 3,041,000 stock options to existing employees with 50 percent of these options vesting over four years from the grant date and 50 percent vesting over five years from the grant date. The Company currently uses authorized and unissued shares to satisfy stock award exercises and settlement of RSUs and PSUs. As of January 31, 2022 and January 31, 2021, there were 14,185,048 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: January 31, 2022 Outstanding stock options and unvested RSUs and PSUs 14,639,489 Available for future stock option, RSU, and PSU grants 14,185,048 Available for ESPP 2,599,072 Total common stock reserved at January 31, 2022 31,423,609 Stock Option Activity Stock option activity is as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) Outstanding at January 31, 2021 11,177,838 $ 8.25 6.9 years $ 452,452 Granted 183,946 $ 40.75 Exercised (2,603,432) $ 5.78 Canceled (382,466) $ 18.19 Outstanding at January 31, 2022 8,375,866 $ 9.28 6.1 years $ 198,828 Vested as of January 31, 2022 6,649,688 $ 7.07 5.8 years $ 172,579 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: Year Ended January 31, 2022 2021 2020 Expected dividend yield — — — Expected volatility 43.8% - 46.9% 43% - 44.1% 41.7% - 42.8% Expected term (years) 6.1 3.7 - 6.1 5.5 - 6.9 Risk-free interest rate 1.04% - 1.35% 0.20% - 0.52% 1.39% - 2.48% Stock options granted during the fiscal years ended January 31, 2022, 2021, and 2020 had a weighted average grant date fair value of $18.26, $15.16, and $11.07 per share, respectively. The aggregate intrinsic value of stock options exercised during the fiscal years ended January 31, 2022, 2021, and 2020 was $91.0 million, $72.1 million, and $61.7 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 January 31, 2022, there was approximately $18.6 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 2.2 years. Restricted Stock Units A summary of the Company’s RSU activity and related information is as follows: Number of RSUs Weighted Average Grant Date Fair Value Per Share Outstanding at January 31, 2021 3,971,128 $ 23.60 Granted 4,449,624 $ 41.23 Vested (925,400) $ 26.53 Forfeited or canceled (1,467,151) $ 29.30 Outstanding at January 31, 2022 6,028,201 $ 34.77 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 January 31, 2022, there was $194.1 million of unrecognized stock-based compensation expense related to unvested RSUs, which is expected to be recognized over a weighted average period of 2.9 years based on vesting under the award service conditions. In connection with the acquisition of Rundeck, the Company agreed to grant RSUs to Rundeck employees who joined the Company upon the effective date of the acquisition, with a value totaling approximately $14.6 million. The amount will be ratably recognized as stock-based compensation over the requisite service period of four years. Performance Stock Units A summary of the Company’s PSU activity and related information is as follows: Number of PSUs Weighted Average Grant Date Fair Value Per Share Outstanding at January 31, 2021 — $ — Granted 127,309 $ 41.17 Released — $ — Forfeited or canceled (9,608) $ 41.17 Outstanding at January 31, 2022 117,701 $ 41.17 In April 2021, the Company granted PSUs 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. The number of shares of our stock to be received based on the performance condition can range from 0% to 200% of the target amount. Compensation expense for PSUs with performance conditions is measured using the fair value at the date of grant and recorded over the vesting period under the graded-vesting attribution method, and may be adjusted over the vesting period based on interim estimates of performance against the performance condition. During the year ended January 31, 2022, the Company recorded stock-based compensation expense for the number of PSUs considered probable of vesting based on the attainment of the performance targets. As of January 31, 2022, total unrecognized stock-based compensation cost related to PSUs was $2.7 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. The following assumptions were used to calculate the fair value of shares to be granted under the ESPP during the periods: Year Ended January 31, 2022 2021 2020 Expected dividend yield — — — Expected volatility 41.2% - 53.9% 39.2% - 61.6% 39.2% - 48.4% Expected term (years) 0.5 - 2.0 0.5 - 2.1 0.5 - 2.1 Risk-free interest rate 0.05% - 1.64% 0.08% - 2.39% 1.53% - 2.43% During the fiscal years ended January 31, 2022, 2021 and 2020, the Company recognized $4.7 million, $5.3 million, and $5.1 million of stock-based compensation expense related to the ESPP, respectively, and withheld $9.7 million, $6.2 million, and $5.5 million in contributions from employees, respectively. In the fiscal year ended January 31, 2022, 345,051 shares of common stock were issued at a weighted average purchase price of $22.44. In the fiscal year ended January 31, 2021, 301,842 shares of common stock were issued at a weighted average purchase price of $19.83. In the year ended January 31, 2020, 210,775 shares of common stock were issued at a weighted average purchase price of $19.63 Stock-Based Compensation Stock-based compensation expense included in the Company’s consolidated statements of operations is as follows: Year Ended January 31, 2022 2021 2020 (in thousands) Cost of revenue $ 3,751 $ 1,702 $ 1,018 Research and development 23,764 11,095 5,566 Sales and marketing (1) 19,012 14,733 8,924 General and administrative 23,506 15,701 11,697 Total $ 70,033 $ 43,231 $ 27,205 (1) Stock-based compensation expense includes a one-time stock-based compensation expense of $3.1 million related to the modification of certain stock option awards in the fiscal year ended January 31, 2021. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Jan. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss per Share The following table presents the calculation of basic and diluted net loss per share: Year Ended January 31, 2022 2021 2020 (in thousands, except per share data) Numerator: Net loss $ (107,455) $ (68,903) $ (50,339) Denominator: Weighted average shares used in calculating net loss per share, basic and diluted 84,514 79,614 65,544 Net loss per share, basic and diluted $ (1.27) $ (0.87) $ (0.77) 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 January 31, 2022 2021 2020 (in thousands) Shares subject to outstanding common stock awards 14,522 15,149 15,613 Unvested early exercised stock options — — 76 Restricted stock awards purchased with promissory notes — — 180 Shares issuable pursuant to the 2019 Employee Stock Purchase Plan 71 73 67 Restricted stock issued to Rundeck key personnel 122 261 — Convertible senior notes 7,173 7,173 — Total 21,888 22,656 15,936 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of loss before income taxes are as follows: Year Ended January 31, 2022 2021 2020 (in thousands) Domestic $ (111,426) $ (77,956) $ (53,485) Foreign 4,506 5,147 3,821 Loss before provision (benefit from) for income taxes $ (106,920) $ (72,809) $ (49,664) The components of the provision (benefit from) for income taxes are as follows: Year Ended January 31, 2022 2021 2020 (in thousands) Current Federal $ — $ — $ — State — (41) 126 Foreign 181 452 25 Total current tax expense $ 181 $ 411 $ 151 Deferred Federal $ — $ (4,038) $ — State — (977) (1) Foreign 354 698 525 Total deferred tax expense (benefit) $ 354 $ (4,317) $ 524 Provision (benefit from) for income taxes $ 535 $ (3,906) $ 675 A reconciliation of the Company’s recorded provision for (benefit from) income taxes to the amount of taxes computed at the U.S. statutory rate is as follows: Year Ended January 31, 2022 2021 2020 (in thousands) Income taxes computed at U.S. federal statutory rate $ (22,453) $ (15,291) $ (10,429) State taxes, net of federal benefit (8,652) (5,012) (4,901) Stock-based compensation (15,423) (8,443) (3,739) Foreign rate differential (411) 69 (253) Tax credits, net of FIN48 reserves (1,426) (846) (3,271) Change in valuation allowance 48,364 25,076 25,390 Charitable contributions — — (1,960) Other 536 541 (162) Provision (benefit from) for income taxes $ 535 $ (3,906) $ 675 In fiscal 2021, the decrease to the Company's income tax provision relative to comparative periods was primarily due to a reduction in the valuation allowance from the increase in the deferred tax liability associated with the acquired intangible assets from the acquisition of Rundeck, resulting in a $5.0 million deferred tax benefit. Deferred income taxes arise from temporary differences between the carrying values of assets and liabilities for financial reporting purposes and income tax reporting purposes, as well as operating losses and tax credit carryforwards. Significant components of the Company’s deferred tax assets and liabilities are as follows: As of January 31, 2022 2021 (in thousands) Deferred tax assets: Net operating losses $ 100,770 $ 59,125 Allowances and accruals 8,564 6,597 Stock-based compensation 11,343 7,990 Charitable contributions 4,025 3,988 Tax credits 9,035 6,631 Lease liabilities 6,798 8,096 Other 2,475 677 Gross deferred tax assets $ 143,010 $ 93,104 Less: valuation allowance (122,091) (57,944) Net deferred tax assets $ 20,919 $ 35,160 Deferred tax liabilities: Convertible senior notes $ — $ (15,450) Deferred commissions (11,156) (8,026) Intangible assets (6,608) (6,908) Lease assets (5,169) (6,274) Other (113) (277) Gross deferred tax liabilities $ (23,046) $ (36,935) Net deferred tax liabilities $ (2,127) $ (1,775) The realization of deferred tax assets is dependent upon the generation of sufficient taxable income of the appropriate character in future periods. The Company regularly assesses the ability to realize its deferred tax assets and establishes a valuation allowance if it is more-likely-than-not that some portion of the deferred tax assets will not be realized. The Company weighs all available positive and negative evidence, including its earnings history and results of recent operations, scheduled reversals of deferred tax liabilities, projected future taxable income, and tax planning strategies. Due to the weight of objectively verifiable negative evidence, including its history of losses in the United States, the Company believes that it is more likely than not that its U.S. federal and state deferred tax assets will not be realized. Accordingly, the Company has recorded a full valuation allowance on such deferred tax assets. The valuation allowance against its various deferred tax assets increased by $64.1 million and $7.9 million during the fiscal years ended January 31, 2022 and 2021, respectively. As of January 31, 2022, the Company had federal net operating loss carryforwards in the amount of $396.8 million. Beginning in 2030, $56.3 million of the federal net operating losses will begin to expire. The remaining $340.5 million will carry forward indefinitely. As of January 31, 2022, the Company had state and foreign net operating loss carryforwards in the amount of $21.2 million, and $1.9 million, respectively, which begin to expire in 2030. Utilization of the Company’s net operating loss may be subject to annual limitations due to the ownership change limitations provided by section 382 of the Internal Revenue Code and similar state provisions. The Company’s net operating loss carryforwards could expire before utilization if subject to annual limitations. As of January 31, 2022, the Company had federal, California, and Canadian research and development credit carryforwards of $8.6 million, $5.6 million, and $0.8 million, respectively. The federal research and development credits will begin to expire in 2031, the California research and development credits have no expiration, and the Canadian research and development credits will begin to expire in 2037. The following table summarizes the activity related to the Company’s unrecognized tax benefits: Year Ended January 31, 2022 2021 2020 (in thousands) Balance at beginning of period $ 5,018 $ 4,043 $ 6,644 Additions related to prior years 86 29 71 Reductions related to prior years (70) (8) (3,515) Additions related to current year 1,156 591 843 Additions related to acquired positions — 363 — Balance at end of period $ 6,190 $ 5,018 $ 4,043 All of the Company’s tax years remain open for examination by U.S. federal and state tax authorities. The non-U.S. tax returns remain open for examination for the years 2016 and onwards. Due to its U.S. federal and state valuation allowance, $1.1 million, $1.0 million, and $1.1 million of unrecognized tax benefits as of January 31, 2022, 2021, and 2020, respectively, would affect the effective tax rate if recognized. The Company recognizes interest and penalties related to unrecognized tax benefits as provision for income taxes. The Company has accrued an immaterial amount of interest and penalties associated with its unrecognized tax benefits noted above as of January 31, 2022. The Company does not anticipate the total amounts of unrecognized tax benefits will significantly decrease in the next 12 months. U.S. income tax has not been recognized on the excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries that is indefinitely reinvested outside the United States. As a result of current U.S. tax law, the tax impact of future distributions of foreign earnings would generally be limited to withholding tax from local jurisdictions. The amount of the deferred tax liability on the excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries is not material. |
Geographic Information
Geographic Information | 12 Months Ended |
Jan. 31, 2022 | |
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: Year Ended January 31, 2022 2021 2020 (in thousands) United States $ 212,829 $ 163,313 $ 129,728 International 68,567 50,243 36,623 Total $ 281,396 $ 213,556 $ 166,351 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jan. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn March 8, 2022, the Company acquired all of the shares outstanding of Catalytic, Inc. (“Catalytic”) through a merger for cash consideration of $70.0 million, subject to customary purchase price adjustments. Catalytic is a no-code workflow automation platform for efficient and digitized operations. The acquisition will expand the Company’s offerings to new use cases in Finance, Human Resources, and Supply Chain workflows, while complementing the Company’s existing process automation offering. The Company will account for the acquisition as a business combination in accordance with ASC 805. |
401(k) Plan
401(k) Plan | 12 Months Ended |
Jan. 31, 2022 | |
Retirement Benefits [Abstract] | |
401(k) Plan | 401(k) PlanThe Company has a qualified defined contribution plan under Section 401(k) of the Internal Revenue Code covering eligible employees. The 401(k) plan allows each participant to contribute up to an amount not to exceed an annual statutory maximum. The Company is responsible for the administrative costs of the 401(k) plan, and effective July 1, 2019, the Company implemented an employer matching contribution. Effective January 1, 2022, the employer matching contribution was increased from one percent (1%) of each participant’s employee contributions of at least 1% of eligible wages during the period to two percent (2%) of each participant’s employee contributions of at least 2% of eligible wages during the period. During the fiscal years ended January 31, 2022, 2021, and 2020, the Company recognized expense of $1.3 million, $0.8 million, and $0.4 million, respectively, related to matching contributions. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and include the consolidated accounts of PagerDuty. All intercompany balances and transactions have been eliminated upon consolidation. The Company’s fiscal year ends on January 31. References to fiscal 2022, for example, refer to the fiscal year ended 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 credit losses, 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. |
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. |
Revenue Recognition, Deferred Revenue, Deferred Contract Costs, and Cost of Revenue | Revenue Recognition The Company generates revenue primarily from cloud-hosted subscription fees with the majority of its revenue from such arrangements. The Company also generates revenue from term-license software subscription fees. Revenue is recognized when control of these services is transferred to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. The Company accounts for revenue contracts with customers by applying the requirements of Topic 606, which includes the following steps: • Identification of the contract, or contracts, with a customer. • Identification of the performance obligations in the contract. • Determination of the transaction price. • Allocation of the transaction price to the performance obligations in the contract. • Recognition of revenue when, or as, the Company satisfies a performance obligation. Cloud-hosted software subscriptions The Company’s cloud-hosted software subscriptions allow customers to use its cloud-hosted software over the contract period without taking possession of the software. The Company’s cloud-hosted software subscription agreements generally have monthly or annual contractual terms. Revenue related to our cloud-hosted software subscriptions is recognized ratably over the related contractual term beginning on the date that the Company’s platform is made available to a customer. Access to the platform represents a series of distinct services as the Company continually provides access to, and fulfills its obligation to, the end customer over the subscription term. The series of distinct services represents a single performance obligation that is satisfied over time. The Company recognizes revenue ratably because the customer receives and consumes the benefits of the platform throughout the contract period. Term-license software subscriptions The Company’s term license software subscriptions provide both an obligation to provide access to its on-premise software, which includes both open source and proprietary features, as well as an obligation to provide support and maintenance. The Company’s term-license software subscription agreements generally have annual contractual terms. The Company accounts for the license to the software and support as two separate performance obligations. As the open source software is publicly available at no cost to the customer, the Company has determined that there is no value to be assigned to the open source software in the term-license software subscription arrangements. The proprietary software license represents a promise to provide a license to use functional intellectual property that is recognized at a point in time on the date access to the software is made available to the customer and the term-license software subscription period has begun. The Company has concluded the support is a stand-ready performance obligation that consists of a series of distinct services that are satisfied ratably over time as the services are provided. The Company uses a time-based output method to measure progress because efforts are expended evenly throughout the period given the nature of the promise is a stand-ready service. The Company recognizes support revenue ratably, typically beginning on the start of the contractual term of the arrangement. Cloud-hosted and term license software subscriptions In order to determine the stand-alone selling price, the Company conducts a periodic analysis that requires judgment and considers multiple factors that are reasonably available and maximizes the use of observable inputs that may vary over time depending upon the unique facts and circumstances related to each performance obligation. To have observable inputs, the Company requires that a substantial majority of the stand-alone selling prices for a product offering fall within a pricing range. If a directly observable stand-alone selling price does not exist, the Company estimates a stand-alone selling price range by reviewing external and internal market factor categories, which may include pricing practices, historical discounting, industry practices, service groups, and geographic considerations. The Company believes that these analyses result in an estimate that approximates the price the Company would charge for the performance obligations if they were sold separately. The Company’s cloud-hosted and term-license software subscription arrangements are generally non-cancellable and do not contain refund provisions. The Company bills for monthly cloud-hosted and term-license software subscriptions on a monthly basis and annually in advance for arrangements with terms of one year or more. The price of the cloud-hosted and term-license software subscriptions is generally fixed at contract inception and therefore, the Company’s contracts do not contain a significant amount of variable consideration. As a result, the amount of revenue recognized in the periods presented from performance obligations satisfied (or partially satisfied) in previous periods due to changes in the transaction price was not material. The Company’s revenue excludes sales and other indirect taxes. Deferred Revenue The Company records contract liabilities to deferred revenue when amounts are invoiced in advance of performance. Deferred revenue consists of the unearned portion of customer billings. The Company’s payment terms generally provide for payment within 30 days of the invoice date. Amounts anticipated to be recognized within one year of the balance sheet date are recorded as deferred revenue, current; the remaining portion is recorded as deferred revenue, non-current in the consolidated balance sheets. The Company applied the practical expedient in Topic 606 and did not evaluate contracts of one year or less for the existence of a significant financing component. For contracts with terms of more than a year, the Company has determined its contracts generally do not include a significant financing component as these all relate to contracts that are billed annually in advance. The primary purpose of the Company’s invoicing terms is to provide customers with simplified and predictable ways of purchasing the Company’s cloud- hosted software subscription, not to receive financing from its customers or to provide customers with financing. Deferred Contract Costs Deferred contract costs consist of sales commissions earned by the Company’s sales force which are considered incremental and recoverable costs of obtaining a contract with a customer. The Company determined that sales commissions that are related to contract renewals are not commensurate with commissions earned on the initial contract. Accordingly, sales commissions for initial contracts are deferred and then amortized on a straight-line basis over a period of benefit that the Company has determined to be four years. The Company determined the period of benefit by taking into consideration its customer contracts, technology, and other factors. Amounts anticipated to be recognized within one year of the balance sheet date are recorded as deferred contract costs, current; the remaining portion is recorded as deferred contract costs, noncurrent in the consolidated balance sheets. Deferred contract costs are periodically reviewed for impairment. Amortization of deferred contract costs is included in sales and marketing expense in the consolidated statements of operations. |
Accounts Receivable and Related Allowance | Accounts Receivable and Related Allowance for Credit LossesAccounts receivable are recorded at the invoiced amount, net of allowances for credit losses. The allowance is based upon historical loss patterns, customer credit quality, the age of each past due invoice, and an evaluation of the potential risk of loss associated with delinquent accounts. The allowance also reflects current market conditions and reasonable and supportable forecasts of future economic conditions. As of January 31, 2022, the allowance reflects considerations related to the COVID-19 pandemic. |
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, United States (“U.S.”) Treasury securities, commercial paper, corporate debt securities, or U.S. Government agency securities that management believes to be of high credit quality. |
Foreign Currency Remeasurement | Foreign Currency RemeasurementThe functional currency of the Company’s international subsidiaries is the United States dollar. Accordingly, monetary balance sheet accounts are remeasured using exchange rates in effect at the balance sheet dates and non-monetary items are remeasured at historical exchange rates. Revenue and expenses are remeasured at the average exchange rates for the period. |
Cash and Cash Equivalents | Cash and Cash EquivalentsCash and cash equivalents consist of cash on hand, highly liquid investments with original maturities of three months or less from the date of purchase, and money market funds. |
Investments | Investments The Company’s investments are classified as available-for-sale and consist of highly liquid investments, primarily U.S. Treasury securities, commercial paper, and corporate debt securities. The Company determines the appropriate classification of its investments at the time of purchase and reevaluates such designation at each balance sheet date. The Company periodically evaluates its short-term investments to assess whether those with unrealized loss positions are impaired. The Company considers various factors in determining whether to recognize an impairment charge, including the extent to which the fair value is less than the Company’s cost basis, the financial condition of the issuer and any changes thereto, and the Company’s intent to sell, or whether it is more likely than not that the Company will be required to sell, the investment before recovery of the investment’s amortized cost. If the Company determines that the investment is impaired, an impairment loss is recognized in earnings equal to the difference between the investment’s amortized cost and fair value at such date. Realized gains and losses are reported in other income, net, in the consolidated statements of operations. No impairment charges have been recognized to date. Available-for-sale |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net, are stated at cost less accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of the respective assets, which is generally three |
Research and Development Expense | Research and Development Expense Research and development expenses consist primarily of personnel costs for the Company’s engineering, product, and design teams. Additionally, research and development expenses include contractor fees, depreciation of equipment used in research and development activities, acquisition-related expenses, and allocated overhead costs. Research and development costs are expensed as incurred. |
Internal-Use Software Costs | Internal-Use Software CostsThe Company evaluates costs related to the development of its platform and certain projects for internal use incurred during the application development stage. Costs related to preliminary project activities and post-implementation activities are expensed as incurred and costs related to the application development stage are capitalized. Internal-use software is amortized on a straight-line basis over its estimated useful life, which is generally three years. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. |
Business Combinations | Business CombinationsThe Company applies the acquisition method of accounting for business combinations. Under this method of accounting, all assets acquired and liabilities assumed are recorded at their respective fair values at the date of the acquisition. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and often involves the use of significant estimates and assumptions. These estimates can include, but are not limited to, the cash flows that an asset is expected to generate in the future, the appropriate weighted-average cost of capital, and the cost savings expected to be derived from acquiring an asset. |
Goodwill and Acquired Intangible Assets | Goodwill. Goodwill represents the excess purchase consideration of an acquired business over the fair value of the net tangible and identifiable intangible assets. Goodwill is evaluated for impairment annually in the fourth quarter, and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. Triggering events that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate or a significant decrease in expected cash flows. No impairment charges were recorded during the fiscal years ended January 31, 2022, 2021, or 2020. Acquired Intangible Assets. Acquired intangible assets consist of identifiable intangible assets, primarily developed technology and customer relationships, resulting from the Company’s business acquisition. Intangible assets are recorded at fair value on the date of acquisition and amortized over their estimated useful lives. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets. The carrying amounts of the Company’s long-lived assets, including property and equipment, lease right-of-use assets, capitalized internal-use software, and acquired intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable or that the useful lives are shorter than originally estimated. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If long-lived assets are considered impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair value. If the Company reduces the estimated useful life assumption for any asset, the remaining unamortized balance would be amortized or depreciated over the revised estimated useful life. |
Advertising Costs | Advertising CostsAdvertising costs are expensed as incurred and are included in sales and marketing expense. |
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. Fair value of common stock 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. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method. Under this method, the Company recognizes deferred income tax assets and liabilities for the expected future consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as for net operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. The Company recognizes the deferred income tax effects of a change in tax rates in the period of enactment. The Company records a valuation allowance to reduce its deferred tax assets to the net amount that it believes is more likely than not to be realized. The Company considers all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income and ongoing tax planning strategies in assessing the need for a valuation allowance. Realization of its deferred tax assets is dependent primarily upon future U.S. taxable income. The Company recognizes income tax benefits from uncertain tax positions only if it believes that it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such uncertain tax positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. Although the Company believes that it has adequately reserved for its uncertain tax positions (including net interest and penalties), it can provide no assurance that the final tax outcome of these matters will not be materially different. The Company makes adjustments to these reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made and could have a material impact on its financial position, results of operations, and cash flows. |
Net Loss Per Common Share | Net Loss Per Share Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period giving effect to all potentially dilutive securities to the extent they are dilutive. The dilutive effect of potentially dilutive securities is reflected in diluted net loss per share by application of the treasury stock method. Basic and diluted net loss per share of common stock were the same for each period presented as the inclusion of all potential shares of common stock outstanding would have been anti-dilutive. |
Recently Issued/Adopted Accounting Pronouncements | 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 Company will adopt ASU 2021-08 as of February 1, 2022 which will 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. Recently Adopted Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses (“Topic 326”) Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which requires an entity to utilize a new impairment model known as the current expected credit loss (“CECL”) model to estimate its lifetime “expected credit loss” and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in more timely recognition of credit losses. This guidance also requires new disclosures for financial assets measured at amortized cost, loans, and available-for-sale debt securities. The Company adopted the standard as of February 1, 2020, the beginning of the Company’s fiscal year ended January 31, 2021. The adoption of this guidance did not have a material impact to the consolidated financial statements. In connection with the adoption, for purposes of identifying and measuring impairment, the policy election was made to exclude accrued interest from both the fair value and amortized cost basis of our available-for sale debt securities. Such accrued interest is recorded in prepaid expenses and other current assets. In December 2019, the FASB issued Accounting Standards Update No. 2019-12, Income Taxes (“Topic 740”): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which is intends to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for the Company beginning in fiscal 2022, although early adoption is permitted. The Company early adopted the standard as of February 1, 2020, the beginning of the Company’s fiscal year ended January 31, 2021. The adoption of this guidance did not have a material impact to the consolidated financial statements. In August 2020, the FASB issued Accounting Standard Update No. 2020-06, Debt—Debt with Conversion Options (“Subtopic 470-20”) and Derivatives and Hedging—Contracts in Entity’s Own Equity (“Subtopic 815-40”) (“ASU 2020-06”), 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 consolidated balance sheets. Rather, the $287.5 million principal amount of the Company’s Convertible Notes was classified only as a liability in the consolidated balance sheets for the fiscal year ended January 31, 2022. 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 consolidated balance sheets as of February 1, 2021. The adoption did not affect the Company’s consolidated statements of operations or consolidated statements of cash flows. Refer to Note 8 , “Debt and Financing Arrangements” for further information. |
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. |
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) | 12 Months Ended |
Jan. 31, 2022 | |
Accounting Policies [Abstract] | |
Activity Related to Allowance for Doubtful Accounts | Activity related to the Company’s allowance for credit losses on accounts receivable was as follows: Amount (in thousands) Balance as of January 31, 2020 $ 810 Charged to bad debt expense 1,188 Write-offs, net of recoveries (810) Balance as of January 31, 2021 $ 1,188 Charged to bad debt expense 1,099 Write-offs, net of recoveries (478) Balance as of January 31, 2022 $ 1,809 |
Rollforward of Deferred Contract Costs | The following table represents a rollforward of the Company’s deferred contract costs: Amount (in thousands) Balance as of January 31, 2020 $ 25,688 Additions to deferred contract costs 16,876 Amortization of deferred contract costs (10,977) Balance as of January 31, 2021 $ 31,587 Additions to deferred contract costs 26,167 Amortization of deferred contract costs (14,923) Balance as of January 31, 2022 $ 42,831 |
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) |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
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 January 31, 2022 2021 (in thousands) Cash and cash equivalents Cash $ 268,091 $ 184,308 Money market funds 73,194 139,870 Commercial paper 5,500 — U.S. Treasury securities 3,000 14,988 Total cash and cash equivalents $ 349,785 $ 339,166 Available-for-sale investments: U.S. Treasury securities $ 41,105 $ 45,026 Commercial paper 39,483 34,598 Corporate debt securities 112,983 141,488 Total available-for-sale investments $ 193,571 $ 221,112 |
Components of Available-for-sale Investments | Cash, cash equivalents, and investments consisted of the following: As of January 31, 2022 2021 (in thousands) Cash and cash equivalents Cash $ 268,091 $ 184,308 Money market funds 73,194 139,870 Commercial paper 5,500 — U.S. Treasury securities 3,000 14,988 Total cash and cash equivalents $ 349,785 $ 339,166 Available-for-sale investments: U.S. Treasury securities $ 41,105 $ 45,026 Commercial paper 39,483 34,598 Corporate debt securities 112,983 141,488 Total available-for-sale investments $ 193,571 $ 221,112 |
Components of Held-to-maturity Investments | Cash, cash equivalents, and investments consisted of the following: As of January 31, 2022 2021 (in thousands) Cash and cash equivalents Cash $ 268,091 $ 184,308 Money market funds 73,194 139,870 Commercial paper 5,500 — U.S. Treasury securities 3,000 14,988 Total cash and cash equivalents $ 349,785 $ 339,166 Available-for-sale investments: U.S. Treasury securities $ 41,105 $ 45,026 Commercial paper 39,483 34,598 Corporate debt securities 112,983 141,488 Total available-for-sale investments $ 193,571 $ 221,112 The following tables summarize the Company’s investments’ adjusted cost, net unrealized (losses) gains, and fair value by significant investment category as of January 31, 2022 and 2021. Gross realized gains or losses from sales of available-for-sale securities were not material for the fiscal years ended January 31, 2022 and 2021. As of January 31, 2022 Cost Basis Unrealized Loss, Net Recorded Basis (in thousands) Available-for-sale investments: U.S. Treasury securities $ 41,147 $ (42) $ 41,105 Commercial paper 39,528 (45) 39,483 Corporate debt securities 113,565 (582) 112,983 Total investments $ 194,240 $ (669) $ 193,571 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 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 (losses) gains, and fair value by significant investment category as of January 31, 2022 and 2021. Gross realized gains or losses from sales of available-for-sale securities were not material for the fiscal years ended January 31, 2022 and 2021. As of January 31, 2022 Cost Basis Unrealized Loss, Net Recorded Basis (in thousands) Available-for-sale investments: U.S. Treasury securities $ 41,147 $ (42) $ 41,105 Commercial paper 39,528 (45) 39,483 Corporate debt securities 113,565 (582) 112,983 Total investments $ 194,240 $ (669) $ 193,571 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 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 January 31, 2022 and 2021: As of January 31, 2022 Adjusted Cost Fair Value (in thousands) Due within one year $ 154,692 $ 154,455 Due between one to five years 39,548 39,116 $ 194,240 $ 193,571 January 31, 2021 Adjusted Cost Fair Value (in thousands) Due within one year $ 171,498 $ 171,837 Due between one to five years 49,271 49,275 $ 220,769 $ 221,112 |
Components of Property and Equipment, Net | Property and equipment, net consisted of the following: As of January 31, 2022 2021 (in thousands) Leasehold improvements $ 15,392 $ 12,767 Computers and equipment 7,483 6,562 Furniture and fixtures 4,686 3,017 Capitalized internal-use software 6,136 1,355 Gross property and equipment (1) $ 33,697 $ 23,701 Accumulated depreciation and amortization (15,468) (11,062) Property and equipment, net $ 18,229 $ 12,639 (1) Gross property and equipment includes construction-in-progress for leasehold improvements and capitalized internal-use software of $6.9 million and $1.5 million that had not yet been placed in service as of January 31, 2022 and January 31, 2021, respectively. The costs associated with construction-in-progress are not amortized until placed in service. |
Schedule of Accrued Expenses, Other Current Liabilities, and Accrued Compensation | Accrued expenses and other current liabilities consisted of the following: As of January 31, 2022 2021 (in thousands) Accrued professional fees $ 3,790 $ 2,138 Accrued events 463 294 Accrued hosting and infrastructure 1,495 708 Accrued taxes 1,056 1,350 Accrued liabilities, other 6,836 5,137 Accrued expenses and other liabilities $ 13,640 $ 9,627 Accrued compensation consisted of the following: As of January 31, 2022 2021 (in thousands) Accrued bonuses $ 13,480 $ 8,657 Accrued compensation, other 21,847 19,715 Accrued compensation $ 35,327 $ 28,372 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
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 January 31, 2022 Level 1 Level 2 Level 3 Total (in thousands) Money market funds $ 73,194 $ — $ — $ 73,194 U.S. Treasury securities 3,000 41,105 — 44,105 Commercial paper 5,500 39,483 — 44,983 Corporate debt securities — 112,983 — 112,983 Total $ 81,694 $ 193,571 $ — $ 275,265 Included in cash equivalents $ 81,694 Included in investments $ 193,571 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 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Components | The total purchase price consisted of the following: (in thousands) Cash paid or payable to common and preferred stockholders, warrant holders, and vested option holders $ 51,741 Fair value of common stock transferred 34,002 Fair value of assumed options and restricted stock attributable to pre-combination service (1) 4,934 Fair value of future cash payments to common stockholders attributable to pre-combination service 4,808 Total purchase consideration $ 95,485 (1) The restricted shares are considered to be legally issued and outstanding on the date of issuance. |
Schedule of Allocation of Purchase Consideration | The following table presents the preliminary purchase consideration allocation recorded in the Company’s consolidated balance sheet as of the acquisition date: (in thousands) Cash and cash equivalents $ 1,925 Accounts receivable and other assets 1,879 Intangible assets 27,800 Goodwill 72,126 Accounts payable and other liabilities (548) Deferred revenue (2,680) Deferred tax liabilities, net (5,017) Total purchase consideration $ 95,485 |
Schedule of Components of Identifiable Intangible Assets Acquired | The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition: Fair Value Useful Life (in thousands) (in years) Customer relationships $ 21,800 10 Developed technology $ 5,600 5 Trademarks $ 400 2 |
Goodwill and Acquired Intangi_2
Goodwill and Acquired Intangible Assets (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets Subject to Amortization | Intangible assets subject to amortization consist of the following: As of January 31, 2022 Cost Accumulated Amortization Net Weighted Average (in thousands) (in years) Customer relationships $ 21,800 $ (2,907) $ 18,893 8.7 Developed technology 5,600 (1,493) 4,107 3.7 Trademarks 400 (267) 133 0.7 Other intangibles, net $ 27,800 $ (4,667) $ 23,133 As of January 31, 2021 Cost Accumulated Amortization Net Weighted Average (in thousands) (in years) Customer relationships $ 21,800 $ (727) $ 21,073 9.7 Developed technology 5,600 (373) 5,227 4.7 Trademarks 400 (67) 333 1.7 Other intangibles, net $ 27,800 $ (1,167) $ 26,633 |
Schedule of Expected Amortization Expense in Future Periods | As of January 31, 2022, expected amortization expense in future periods is as follows: Year ending January 31, (in thousands) 2023 $ 3,433 2024 3,300 2025 3,300 2026 2,927 2027 2,180 Thereafter 7,993 Total expected future amortization expense $ 23,133 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Leases [Abstract] | |
Information About Lease on Condensed Consolidated Balance Sheet | The following tables present information about leases on the consolidated balance sheet. As of January 31, 2022 2021 (in thousands) Assets Lease right-of-use assets $ 20,227 24,691 Liabilities Lease liabilities 5,637 5,262 Lease liabilities, non-current 20,912 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 consolidated statement of operations. Year Ended January 31, 2022 2021 (in thousands) Operating lease expense $ 5,574 $ 5,769 Short-term lease expense 756 879 Variable lease expense 939 1,325 The following table presents supplemental cash flow information about the Company’s leases. Year Ended January 31, 2022 2021 (in thousands) Cash paid for amounts included in the measurement of lease liabilities $ 6,319 $ 5,416 |
Schedule of Remaining Maturities of Lease Liabilities | As of January 31, 2022, remaining maturities of lease liabilities are as follows: Year ending January 31, (in thousands) 2023 $ 6,512 2024 6,694 2025 6,894 2026 2,763 2027 2,441 Thereafter 3,819 Gross lease payments $ 29,123 Less: Imputed interest (2,574) Total $ 26,549 |
Debt and Financing Arrangemen_2
Debt and Financing Arrangements (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
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 January 31, 2022 (post-ASU 2020-06 adoption) and as of January 31, 2021 (pre-ASU 2020-06 adoption) is as follows: As of January 31, 2022 2021 (in thousands) Principal $ 287,500 $ 287,500 Less: unamortized debt discount — (63,664) Less: unamortized issuance costs (6,431) (6,308) Net carrying amount $ 281,069 $ 217,528 The net carrying amount of the equity component of the Notes as of January 31, 2022 (post-ASU 2020-06 adoption) and as of January 31, 2021 (pre-ASU 2020-06 adoption) is as follows: As of January 31, 2022 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 during the year ended January 31, 2022 (post-ASU 2020-06 adoption) and during the year ended January 31, 2021 (pre-ASU 2020-06 adoption) is as follows: Year Ended January 31, 2022 2021 (in thousands) Contractual interest expense $ 3,594 $ 2,157 Amortization of debt discount — 7,104 Amortization of debt issuance costs 1,804 704 Total interest expense related to the Notes $ 5,398 $ 9,965 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Obligation, Fiscal Year Maturity | As of January 31, 2022, our contractual obligations are as follows for the years ending January 31: (in thousands) Operating Lease Obligations (1) Purchase Commitments (2) Senior Convertible Notes (3) Total 2023 $ 6,512 $ 28,525 $ 3,594 $ 38,631 2024 6,694 20,041 3,594 30,329 2025 6,894 15,987 3,594 26,475 2026 2,763 — 289,297 292,060 2027 2,441 — — 2,441 Thereafter 3,819 — — 3,819 Total $ 29,123 $ 64,553 $ 300,079 $ 393,755 (1) Represents obligations under non-cancellable lease agreements for our corporate headquarters and worldwide offices. (2) Primarily relates to contractual third-party services. (3) Includes principal and interest payments. For more information regarding our convertible senior notes, refer to Note 8, “Debt and Financing Arrangements” . |
Deferred Revenue and Performa_2
Deferred Revenue and Performance Obligations (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Deferred Revenue | The following table presents the changes to the Company’s deferred revenue: Year Ended January 31, 2022 2021 2020 (in thousands) Deferred revenue, beginning of period $ 129,972 $ 92,569 $ 64,104 Billings 321,648 248,279 194,816 Deferred revenue assumed in the Rundeck acquisition — 2,680 — Revenue recognized (281,396) (213,556) (166,351) Deferred revenue, end of period $ 170,224 $ 129,972 $ 92,569 |
Common Stock and Stockholders_2
Common Stock and Stockholders' Equity (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Equity [Abstract] | |
Summary of Shares of Common Stock Reserved for Future Issuance | Shares of common stock reserved for future issuance are as follows: January 31, 2022 Outstanding stock options and unvested RSUs and PSUs 14,639,489 Available for future stock option, RSU, and PSU grants 14,185,048 Available for ESPP 2,599,072 Total common stock reserved at January 31, 2022 31,423,609 |
Schedule of Stock Option Activity | Stock option activity is as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) Outstanding at January 31, 2021 11,177,838 $ 8.25 6.9 years $ 452,452 Granted 183,946 $ 40.75 Exercised (2,603,432) $ 5.78 Canceled (382,466) $ 18.19 Outstanding at January 31, 2022 8,375,866 $ 9.28 6.1 years $ 198,828 Vested as of January 31, 2022 6,649,688 $ 7.07 5.8 years $ 172,579 |
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: Year Ended January 31, 2022 2021 2020 Expected dividend yield — — — Expected volatility 43.8% - 46.9% 43% - 44.1% 41.7% - 42.8% Expected term (years) 6.1 3.7 - 6.1 5.5 - 6.9 Risk-free interest rate 1.04% - 1.35% 0.20% - 0.52% 1.39% - 2.48% |
Schedule of Restricted Stock Unit Activity | A summary of the Company’s RSU activity and related information is as follows: Number of RSUs Weighted Average Grant Date Fair Value Per Share Outstanding at January 31, 2021 3,971,128 $ 23.60 Granted 4,449,624 $ 41.23 Vested (925,400) $ 26.53 Forfeited or canceled (1,467,151) $ 29.30 Outstanding at January 31, 2022 6,028,201 $ 34.77 |
Schedule of Assumptions Used to Calculate Fair Value of Shares to be Granted Under the ESPP | The following assumptions were used to calculate the fair value of shares to be granted under the ESPP during the periods: Year Ended January 31, 2022 2021 2020 Expected dividend yield — — — Expected volatility 41.2% - 53.9% 39.2% - 61.6% 39.2% - 48.4% Expected term (years) 0.5 - 2.0 0.5 - 2.1 0.5 - 2.1 Risk-free interest rate 0.05% - 1.64% 0.08% - 2.39% 1.53% - 2.43% |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense included in the Company’s consolidated statements of operations is as follows: Year Ended January 31, 2022 2021 2020 (in thousands) Cost of revenue $ 3,751 $ 1,702 $ 1,018 Research and development 23,764 11,095 5,566 Sales and marketing (1) 19,012 14,733 8,924 General and administrative 23,506 15,701 11,697 Total $ 70,033 $ 43,231 $ 27,205 (1) Stock-based compensation expense includes a one-time stock-based compensation expense of $3.1 million related to the modification of certain stock option awards in the fiscal year ended January 31, 2021. |
Share-based Payment Arrangement, Performance Shares, Activity | A summary of the Company’s PSU activity and related information is as follows: Number of PSUs Weighted Average Grant Date Fair Value Per Share Outstanding at January 31, 2021 — $ — Granted 127,309 $ 41.17 Released — $ — Forfeited or canceled (9,608) $ 41.17 Outstanding at January 31, 2022 117,701 $ 41.17 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
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: Year Ended January 31, 2022 2021 2020 (in thousands, except per share data) Numerator: Net loss $ (107,455) $ (68,903) $ (50,339) Denominator: Weighted average shares used in calculating net loss per share, basic and diluted 84,514 79,614 65,544 Net loss per share, basic and diluted $ (1.27) $ (0.87) $ (0.77) |
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 January 31, 2022 2021 2020 (in thousands) Shares subject to outstanding common stock awards 14,522 15,149 15,613 Unvested early exercised stock options — — 76 Restricted stock awards purchased with promissory notes — — 180 Shares issuable pursuant to the 2019 Employee Stock Purchase Plan 71 73 67 Restricted stock issued to Rundeck key personnel 122 261 — Convertible senior notes 7,173 7,173 — Total 21,888 22,656 15,936 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of Income (Loss) Before Income Taxes | The components of loss before income taxes are as follows: Year Ended January 31, 2022 2021 2020 (in thousands) Domestic $ (111,426) $ (77,956) $ (53,485) Foreign 4,506 5,147 3,821 Loss before provision (benefit from) for income taxes $ (106,920) $ (72,809) $ (49,664) |
Components of Provision for Income Taxes | The components of the provision (benefit from) for income taxes are as follows: Year Ended January 31, 2022 2021 2020 (in thousands) Current Federal $ — $ — $ — State — (41) 126 Foreign 181 452 25 Total current tax expense $ 181 $ 411 $ 151 Deferred Federal $ — $ (4,038) $ — State — (977) (1) Foreign 354 698 525 Total deferred tax expense (benefit) $ 354 $ (4,317) $ 524 Provision (benefit from) for income taxes $ 535 $ (3,906) $ 675 |
Reconciliation of Provision for Income Taxes | A reconciliation of the Company’s recorded provision for (benefit from) income taxes to the amount of taxes computed at the U.S. statutory rate is as follows: Year Ended January 31, 2022 2021 2020 (in thousands) Income taxes computed at U.S. federal statutory rate $ (22,453) $ (15,291) $ (10,429) State taxes, net of federal benefit (8,652) (5,012) (4,901) Stock-based compensation (15,423) (8,443) (3,739) Foreign rate differential (411) 69 (253) Tax credits, net of FIN48 reserves (1,426) (846) (3,271) Change in valuation allowance 48,364 25,076 25,390 Charitable contributions — — (1,960) Other 536 541 (162) Provision (benefit from) for income taxes $ 535 $ (3,906) $ 675 |
Significant Components of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows: As of January 31, 2022 2021 (in thousands) Deferred tax assets: Net operating losses $ 100,770 $ 59,125 Allowances and accruals 8,564 6,597 Stock-based compensation 11,343 7,990 Charitable contributions 4,025 3,988 Tax credits 9,035 6,631 Lease liabilities 6,798 8,096 Other 2,475 677 Gross deferred tax assets $ 143,010 $ 93,104 Less: valuation allowance (122,091) (57,944) Net deferred tax assets $ 20,919 $ 35,160 Deferred tax liabilities: Convertible senior notes $ — $ (15,450) Deferred commissions (11,156) (8,026) Intangible assets (6,608) (6,908) Lease assets (5,169) (6,274) Other (113) (277) Gross deferred tax liabilities $ (23,046) $ (36,935) Net deferred tax liabilities $ (2,127) $ (1,775) |
Summary of Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity related to the Company’s unrecognized tax benefits: Year Ended January 31, 2022 2021 2020 (in thousands) Balance at beginning of period $ 5,018 $ 4,043 $ 6,644 Additions related to prior years 86 29 71 Reductions related to prior years (70) (8) (3,515) Additions related to current year 1,156 591 843 Additions related to acquired positions — 363 — Balance at end of period $ 6,190 $ 5,018 $ 4,043 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
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: Year Ended January 31, 2022 2021 2020 (in thousands) United States $ 212,829 $ 163,313 $ 129,728 International 68,567 50,243 36,623 Total $ 281,396 $ 213,556 $ 166,351 |
Description of Business and B_2
Description of Business and Basis of Presentation (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 15, 2019 | Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 |
Subsidiary, Sale of Stock [Line Items] | ||||
Payments of other offering costs | $ 0 | $ 0 | $ 5,945 | |
Common Stock | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Number of shares as a result of conversion (in shares) | 41,273,345 | 41,273,345 | ||
IPO | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Number of shares issued and sold (in shares) | 9,860,500 | |||
Public offering price (in dollars per share) | $ 24 | |||
Proceeds from sale of stock | $ 213,700 | |||
Payments of underwriters' commissions and discounts | 16,600 | |||
Payments of other offering costs | $ 6,400 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | |||||
Jan. 31, 2022USD ($)segment | Jan. 31, 2021USD ($) | Jan. 31, 2020USD ($) | Feb. 01, 2021USD ($) | Jun. 25, 2020USD ($) | Jan. 31, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Number of operating segments | segment | 1 | |||||
Allowance for doubtful accounts | $ 1,809,000 | $ 1,188,000 | $ 810,000 | |||
Payment terms, period post invoice date (in days) | 30 days | |||||
Amortization period for sales commissions for initial contracts that are deferred (in years) | 4 years | |||||
Deferred contract costs | $ 42,831,000 | 31,587,000 | 25,688,000 | |||
Amortization of deferred contract costs | 14,923,000 | 10,977,000 | 7,780,000 | |||
Impairment loss in relation to costs capitalized | 0 | 0 | 0 | |||
Expenditures related to purchases | 1,200,000 | |||||
Cash disbursements | 1,100,000 | |||||
Capitalized internal-use software costs | 4,700,000 | 1,000,000 | 0 | |||
Advertising costs | $ 10,600,000 | 10,100,000 | 5,100,000 | |||
Expected dividend yield | 0.00% | |||||
Convertible senior notes, net | $ 281,069,000 | 217,528,000 | $ 279,264,000 | |||
Accumulated deficit | (266,975,000) | (366,727,000) | (307,938,000) | $ 68,930,000 | ||
Additional Paid-in Capital | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Accumulated deficit | (616,467,000) | (614,494,000) | (487,008,000) | (59,938,000) | ||
Accumulated Deficit | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Accumulated deficit | 348,823,000 | 248,110,000 | 179,207,000 | $ 128,868,000 | ||
Cumulative Effect, Period of Adoption, Adjustment | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Accumulated deficit | 61,736,000 | |||||
Cumulative Effect, Period of Adoption, Adjustment | Additional Paid-in Capital | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Accumulated deficit | 68,478,000 | |||||
Cumulative Effect, Period of Adoption, Adjustment | Accumulated Deficit | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Accumulated deficit | (6,742,000) | |||||
Convertible Senior Notes | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Aggregate principal amount of debt issued | 287,500,000 | $ 287,500,000 | ||||
Accounting Standards Update 2020-06 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Convertible senior notes, net | 61,700,000 | |||||
Director | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Revenue from sale of product to related parties | 2,500,000 | 1,100,000 | $ 1,000,000 | |||
Billings to related parties | $ 2,200,000 | $ 1,100,000 | ||||
Internal-Use Software Costs | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Estimated useful lives of respective property and equipment assets (in years) | 3 years | |||||
Minimum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Estimated useful lives of respective property and equipment assets (in years) | 3 years | |||||
Maximum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Estimated useful lives of respective property and equipment assets (in years) | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Activity Related to Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance as of beginning of period | $ 1,188 | $ 810 |
Charged to bad debt expense | 1,099 | 1,188 |
Write-offs, net of recoveries | (478) | (810) |
Balance as of end of period | $ 1,809 | $ 1,188 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Rollforward of Deferred Contract Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Increase (Decrease) in Capitalized Contract Costs [Roll Forward] | |||
Balance as of beginning of period | $ 31,587 | $ 25,688 | |
Additions to deferred contract costs | 26,167 | 16,876 | |
Amortization of deferred contract costs | (14,923) | (10,977) | $ (7,780) |
Balance as of end of period | $ 42,831 | $ 31,587 | $ 25,688 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Adjusted Financial Statements to Apply Adopted Guidance (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Feb. 01, 2021 | Jan. 31, 2021 |
Liabilities | |||
Principal | $ 287,500 | ||
Unamortized debt discount and issuance costs | (8,236) | ||
Net carrying amount | $ 281,069 | 279,264 | $ 217,528 |
Equity Component: | |||
Additional paid-in capital | (616,467) | (546,016) | (614,494) |
Accumulated deficit | $ (348,823) | $ (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 Component: | |||
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 Component: | |||
Additional paid-in capital | 68,478 | ||
Accumulated deficit | $ 6,742 |
Balance Sheet Components - Comp
Balance Sheet Components - Components of Cash and Cash Equivalents and Investments (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Cash and cash equivalents | ||
Cash | $ 268,091 | $ 184,308 |
Money market funds | 73,194 | 139,870 |
Commercial paper | 5,500 | 0 |
U.S. Treasury securities | 3,000 | 14,988 |
Total cash and cash equivalents | 349,785 | 339,166 |
Available-for-sale investments: | ||
Total available-for-sale investments | 193,571 | 221,112 |
U.S. Treasury securities | ||
Available-for-sale investments: | ||
Total available-for-sale investments | 41,105 | 45,026 |
Commercial paper | ||
Available-for-sale investments: | ||
Total available-for-sale investments | 39,483 | 34,598 |
Corporate debt securities | ||
Available-for-sale investments: | ||
Total available-for-sale investments | $ 112,983 | $ 141,488 |
Balance Sheet Components - Carr
Balance Sheet Components - Carrying Value of Investments (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Available-for-sale investments: | ||
Cost Basis | $ 194,240 | $ 220,769 |
Unrealized Gain (Loss), Net | (669) | 343 |
Recorded Basis | 193,571 | 221,112 |
U.S. Treasury securities | ||
Available-for-sale investments: | ||
Cost Basis | 41,147 | 45,023 |
Unrealized Gain (Loss), Net | (42) | 3 |
Recorded Basis | 41,105 | 45,026 |
Commercial paper | ||
Available-for-sale investments: | ||
Cost Basis | 39,528 | 34,607 |
Unrealized Gain (Loss), Net | (45) | (9) |
Recorded Basis | 39,483 | 34,598 |
Corporate debt securities | ||
Available-for-sale investments: | ||
Cost Basis | 113,565 | 141,139 |
Unrealized Gain (Loss), Net | (582) | 349 |
Recorded Basis | $ 112,983 | $ 141,488 |
Balance Sheet Components - Cont
Balance Sheet Components - Contractual Maturity (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Adjusted Cost | ||
Due within one year | $ 154,692 | $ 171,498 |
Due between one to five years | 39,548 | 49,271 |
Cost Basis | 194,240 | 220,769 |
Fair Value | ||
Due within one year | 154,455 | 171,837 |
Due between one to five years | 39,116 | 49,275 |
Fair Value | $ 193,571 | $ 221,112 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) | 12 Months Ended | ||
Jan. 31, 2022USD ($)security | Jan. 31, 2021USD ($) | Jan. 31, 2020USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Securities in an unrealized loss position | security | 69 | ||
Securities in a continuous net loss position for 12 months or longer | security | 7 | ||
Total unrealized loss on available-for-sale securities | $ (669,000) | $ 343,000 | |
Impairment loss recorded | 0 | ||
Depreciation and amortization | 4,600,000 | 3,800,000 | $ 2,200,000 |
Capitalized internal-use software | $ 5,200,000 | $ 1,100,000 |
Balance Sheet Components - Prop
Balance Sheet Components - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 33,697 | $ 23,701 |
Accumulated depreciation and amortization | (15,468) | (11,062) |
Property and equipment, net | 18,229 | 12,639 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 15,392 | 12,767 |
Computers and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 7,483 | 6,562 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 4,686 | 3,017 |
Capitalized internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 6,136 | 1,355 |
Construction-in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 6,900 | $ 1,500 |
Balance Sheet Components Balanc
Balance Sheet Components Balance Sheet Components - Components of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued professional fees | $ 3,790 | $ 2,138 |
Accrued events | 463 | 294 |
Accrued hosting and infrastructure | 1,495 | 708 |
Accrued taxes | 1,056 | 1,350 |
Accrued liabilities, other | 6,836 | 5,137 |
Accrued expenses and other liabilities | $ 13,640 | $ 9,627 |
Balance Sheet Components Bala_2
Balance Sheet Components Balance Sheet Components - Components of Accrued Compensation (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued bonuses | $ 13,480 | $ 8,657 |
Accrued compensation, other | 21,847 | 19,715 |
Accrued compensation | $ 35,327 | $ 28,372 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 81,694 | $ 154,858 |
Investments | 193,571 | 221,112 |
Total | 275,265 | 375,970 |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 44,105 | 60,014 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 44,983 | 34,598 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 112,983 | 141,488 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 73,194 | 139,870 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 81,694 | 154,858 |
Level 1 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 3,000 | 14,988 |
Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 5,500 | 0 |
Level 1 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 73,194 | 139,870 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 193,571 | 221,112 |
Fair value of convertible senior notes | 326,200 | |
Level 2 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 41,105 | 45,026 |
Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 39,483 | 34,598 |
Level 2 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 112,983 | 141,488 |
Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Level 3 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 3 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 3 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 3 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 0 | $ 0 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) $ in Thousands | Oct. 01, 2020USD ($) | Jan. 31, 2022business | Oct. 31, 2021USD ($) |
Business Acquisition [Line Items] | |||
Number of business combinations | business | 0 | ||
Rundeck, Inc | |||
Business Acquisition [Line Items] | |||
Purchase consideration | $ 95,485 | ||
Vesting conditions, vesting period, period post closing of acquisition (in years) | 2 years | ||
Future cash payments attributable to post-combination services subject to vesting condition | $ 3,700 | ||
Aggregate transaction costs | $ 1,800 | ||
Net deferred tax liability recognized in connection with acquisition | $ 5,017 | ||
Rundeck, Inc | RSUs | |||
Business Acquisition [Line Items] | |||
Vesting conditions, vesting period, period post closing of acquisition (in years) | 2 years | ||
Fair value of restricted stock issued attributable to post-combination services subject to vesting condition | $ 3,300 |
Business Combinations - Purchas
Business Combinations - Purchase Price Components (Details) - Rundeck, Inc $ in Thousands | Oct. 01, 2020USD ($) |
Business Acquisition [Line Items] | |
Cash paid or payable to common and preferred stockholders, warrant holders, and vested option holders | $ 51,741 |
Fair value of future cash payments to common stockholders attributable to pre-combination service | 4,808 |
Total purchase consideration | 95,485 |
Fair value of common stock transferred | |
Business Acquisition [Line Items] | |
Fair value of equity interests issued and issuable | 34,002 |
Fair value of assumed options and restricted stock attributable to pre-combination service | |
Business Acquisition [Line Items] | |
Fair value of equity interests issued and issuable | $ 4,934 |
Business Combinations - Allocat
Business Combinations - Allocation of Purchase Consideration (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 | Oct. 01, 2020 |
Business Acquisition [Line Items] | |||
Goodwill | $ 72,126 | $ 72,126 | |
Rundeck, Inc | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 1,925 | ||
Accounts receivable and other assets | 1,879 | ||
Intangible assets | 27,800 | ||
Goodwill | 72,126 | ||
Accounts payable and other liabilities | (548) | ||
Deferred revenue | (2,680) | ||
Deferred tax liabilities, net | (5,017) | ||
Total purchase consideration | $ 95,500 |
Business Combinations - Compone
Business Combinations - Components of Identifiable Intangible Assets Acquired (Details) - USD ($) $ in Thousands | Oct. 01, 2020 | Jan. 31, 2022 | Jan. 31, 2021 |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair Value | $ 27,800 | $ 27,800 | |
Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair Value | 21,800 | 21,800 | |
Customer relationships | Rundeck, Inc | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair Value | $ 21,800 | ||
Useful Life | 10 years | ||
Developed technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair Value | 5,600 | 5,600 | |
Developed technology | Rundeck, Inc | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair Value | $ 5,600 | ||
Useful Life | 5 years | ||
Trademarks | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair Value | $ 400 | $ 400 | |
Trademarks | Rundeck, Inc | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair Value | $ 400 | ||
Useful Life | 2 years |
Goodwill and Acquired Intangi_3
Goodwill and Acquired Intangible Assets - Schedule of Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 27,800 | $ 27,800 |
Accumulated Amortization | (4,667) | (1,167) |
Net | 23,133 | 26,633 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 21,800 | 21,800 |
Accumulated Amortization | (2,907) | (727) |
Net | $ 18,893 | $ 21,073 |
Weighted Average Remaining Useful Life | 8 years 8 months 12 days | 9 years 8 months 12 days |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 5,600 | $ 5,600 |
Accumulated Amortization | (1,493) | (373) |
Net | $ 4,107 | $ 5,227 |
Weighted Average Remaining Useful Life | 3 years 8 months 12 days | 4 years 8 months 12 days |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 400 | $ 400 |
Accumulated Amortization | (267) | (67) |
Net | $ 133 | $ 333 |
Weighted Average Remaining Useful Life | 8 months 12 days | 1 year 8 months 12 days |
Goodwill and Acquired Intangi_4
Goodwill and Acquired Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense related to intangible assets | $ 3.5 | $ 1.2 | $ 0 |
Goodwill and Acquired Intangi_5
Goodwill and Acquired Intangible Assets - Schedule of Expected Amortization Expense in Future Periods (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 3,433 | |
2024 | 3,300 | |
2025 | 3,300 | |
2026 | 2,927 | |
2027 | 2,180 | |
Thereafter | 7,993 | |
Net | $ 23,133 | $ 26,633 |
Leases - Information About Leas
Leases - Information About Lease on Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Assets | ||
Lease right-of-use assets | $ 20,227 | $ 24,691 |
Liabilities | ||
Lease liabilities | 5,637 | 5,262 |
Lease liabilities, non-current | $ 20,912 | $ 26,542 |
Leases - Additional Information
Leases - Additional Information (Details) | Jan. 31, 2022 | Jan. 31, 2021 |
Leases [Abstract] | ||
Weighted average remaining lease term (in years) | 4 years 9 months 18 days | 5 years 8 months 12 days |
Weighted average discount rate (as a percent) | 3.70% | 3.70% |
Leases - Information About Le_2
Leases - Information About Leases on Condensed Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Leases [Abstract] | ||
Operating lease expense | $ 5,574 | $ 5,769 |
Short-term lease expense | 756 | 879 |
Variable lease expense | $ 939 | $ 1,325 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 6,319 | $ 5,416 |
Leases - Schedule of Remaining
Leases - Schedule of Remaining Maturities of Lease Liabilities (Details) $ in Thousands | Jan. 31, 2022USD ($) |
Leases [Abstract] | |
2023 | $ 6,512 |
2024 | 6,694 |
2025 | 6,894 |
2026 | 2,763 |
2027 | 2,441 |
Thereafter | 3,819 |
Gross lease payments | 29,123 |
Less: Imputed interest | (2,574) |
Total | $ 26,549 |
Debt and Financing Arrangemen_3
Debt and Financing Arrangements - Additional Information (Details) $ / shares in Units, shares in Millions | Jun. 25, 2020USD ($)day$ / sharesshares | Jan. 31, 2022USD ($) | Jan. 31, 2021USD ($) | Jan. 31, 2020USD ($) | Jun. 25, 2021USD ($) | Apr. 30, 2021 |
Debt Instrument [Line Items] | ||||||
Net proceeds from debt offering, after deducting initial purchaser discounts and debt issuance costs paid or payable | $ | $ 278,200,000 | |||||
Conversion rate | 0.0249507 | |||||
Initial conversion price (in dollars per share) | $ / shares | $ 40.08 | |||||
Carrying amount of equity component representing conversion option | $ | $ 70,800,000 | $ 0 | $ 70,768,000 | |||
Less: issuance costs | $ | 0 | 2,290,000 | ||||
Net cost incurred to purchase Capped Calls | $ | $ 35,700,000 | 0 | $ 35,708,000 | $ 0 | ||
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 | |||||
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% | |||||
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% | |||||
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% | |||||
Convertible Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount of debt issued | $ | $ 287,500,000 | $ 287,500,000 | ||||
Stated interest rate | 1.25% | 1.25% | ||||
Event of default, option to accelerate amounts due, minimum percentage of aggregate principal amount of outstanding debt | 25.00% | |||||
Effective interest rate | 7.88% | 1.93% | ||||
Issuance costs attributable to liability component | $ | $ (9,300,000) | $ (6,400,000) | ||||
Convertible Senior Notes | Convertible Senior Notes, Liability Component | ||||||
Debt Instrument [Line Items] | ||||||
Issuance costs attributable to liability component | $ | $ (7,000,000) | |||||
Convertible Senior Notes | Convertible Senior Notes, Equity Component | ||||||
Debt Instrument [Line Items] | ||||||
Issuance costs attributable to liability component | $ | $ (2,300,000) | |||||
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] | ||||||
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 | Jan. 31, 2022 | Feb. 01, 2021 | Jan. 31, 2021 | Jun. 25, 2020 |
Liability Component: | ||||
Principal | $ 287,500 | |||
Net carrying amount | $ 300,079 | |||
Equity Component: | ||||
Proceeds allocated to the conversion options (debt discount) | 0 | $ 70,768 | $ 70,800 | |
Less: issuance costs | 0 | (2,290) | ||
Carrying amount of the equity component | 0 | 68,478 | ||
Convertible Senior Notes | ||||
Liability Component: | ||||
Principal | 287,500 | 287,500 | ||
Less: unamortized debt discount | 0 | (63,664) | ||
Less: unamortized issuance costs | (6,431) | (6,308) | ||
Net carrying amount | $ 281,069 | $ 217,528 |
Debt and Financing Arrangemen_5
Debt and Financing Arrangements - Interest Expense (Details) - Convertible Senior Notes - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Debt Instrument [Line Items] | ||
Contractual interest expense | $ 3,594 | $ 2,157 |
Amortization of debt discount | 0 | 7,104 |
Amortization of debt issuance costs | 1,804 | 704 |
Total interest expense related to the Notes | $ 5,398 | $ 9,965 |
Commitments and Contingencies -
Commitments and Contingencies - Purchase Obligations (Details) $ in Thousands | Jan. 31, 2022USD ($) |
Operating Lease Obligations | |
2023 | $ 6,512 |
2024 | 6,694 |
2025 | 6,894 |
2026 | 2,763 |
2027 | 2,441 |
Thereafter | 3,819 |
Gross lease payments | 29,123 |
Purchase Commitments | |
2023 | 28,525 |
2024 | 20,041 |
2025 | 15,987 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Total | 64,553 |
Senior Convertible Notes | |
2023 | 3,594 |
2024 | 3,594 |
2025 | 3,594 |
2026 | 289,297 |
2027 | 0 |
Thereafter | 0 |
Net carrying amount | 300,079 |
Total | |
2023 | 38,631 |
2024 | 30,329 |
2025 | 26,475 |
2026 | 292,060 |
2027 | 2,441 |
Thereafter | 3,819 |
Total | $ 393,755 |
Deferred Revenue and Performa_3
Deferred Revenue and Performance Obligations - Deferred Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Increase (Decrease) In Contract with Customer, Liability [Roll Forward] | |||
Deferred revenue, beginning of period | $ 129,972 | $ 92,569 | $ 64,104 |
Billings | 321,648 | 248,279 | 194,816 |
Deferred revenue assumed in the Rundeck acquisition | 0 | 2,680 | 0 |
Revenue recognized | (281,396) | (213,556) | (166,351) |
Deferred revenue, end of period | $ 170,224 | $ 129,972 | $ 92,569 |
Deferred Revenue and Performa_4
Deferred Revenue and Performance Obligations - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |||
Percent of total revenue recognized from deferred revenue balance (as a percent) | 44.00% | 41.00% | 38.00% |
Future estimated revenue related to performance obligations | $ 143.9 |
Deferred Revenue and Performa_5
Deferred Revenue and Performance Obligations - Performance Obligations (Details) | Jan. 31, 2022 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-02-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period | 24 months |
Common Stock and Stockholders_3
Common Stock and Stockholders' Equity - Additional Information (Details) $ / shares in Units, $ in Thousands | Oct. 01, 2020USD ($) | Apr. 15, 2019shares | Apr. 11, 2019purchase_period | Mar. 31, 2019shares | Jan. 31, 2022USD ($)equityIncentivePlan$ / sharesshares | Jan. 31, 2021USD ($)$ / sharesshares | Jan. 31, 2020USD ($)$ / sharesshares |
Subsidiary, Sale of Stock [Line Items] | |||||||
Number of equity incentive plans | equityIncentivePlan | 2 | ||||||
Number of shares authorized for grant (in shares) | shares | 23,343,378 | 18,059,506 | |||||
Options granted (in shares) | shares | 3,041,000 | 183,946 | |||||
Number of shares available for grant (in shares) | shares | 14,185,048 | 13,060,282 | |||||
Weighted average grant date fair value of stock options (in dollars per share) | $ / shares | $ 18.26 | $ 15.16 | $ 11.07 | ||||
Aggregate intrinsic value of stock options exercised | $ 91,000 | $ 72,100 | $ 61,700 | ||||
Unrecognized compensation cost related to unvested stock options | 18,600 | ||||||
Stock-based compensation expense | $ 70,033 | $ 43,231 | $ 27,205 | ||||
Shares of common stock issued under the ESPP (in shares) | shares | 345,051 | 301,842 | 210,775 | ||||
Minimum | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Range of shares to be received (as a percent) | 0.00% | ||||||
Research and development | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Stock-based compensation expense | $ 23,764 | $ 11,095 | $ 5,566 | ||||
General and administrative | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Stock-based compensation expense | 23,506 | 15,701 | 11,697 | ||||
Sales and marketing | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Stock-based compensation expense | $ 19,012 | 14,733 | 8,924 | ||||
Stock options | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Unrecognized compensation cost related to unvested awards, period for recognition (in years) | 2 years 2 months 12 days | ||||||
Stock options | Employee | 50% vest over four years from grant date | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Vesting percentage | 50.00% | ||||||
Vesting period (in years) | 4 years | ||||||
Stock options | Employee | 50% vest over five years from grant date | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Vesting percentage | 50.00% | ||||||
Vesting period (in years) | 5 years | ||||||
RSUs | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Unrecognized compensation cost related to unvested awards, period for recognition (in years) | 2 years 10 months 24 days | ||||||
Unrecognized compensation cost related to unvested RSUs | $ 194,100 | ||||||
RSUs | Rundeck, Inc | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Unrecognized compensation cost related to unvested RSUs | $ 14,600 | ||||||
Requisite service period (in years) | 4 years | ||||||
Employee Stock Purchase Plan | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Number of shares available for grant (in shares) | shares | 2,599,072 | ||||||
Offering period (in months) | 24 months | ||||||
Number of purchase periods within each offering period | purchase_period | 4 | ||||||
Purchase period (in months) | 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 | $ 4,700 | 5,300 | 5,100 | ||||
Amount withheld on behalf of employees for future purchase | $ 9,700 | $ 6,200 | $ 5,500 | ||||
Purchase price of common stock issued under the ESPP (in dollars per share) | $ / shares | $ 22.44 | $ 19.83 | $ 19.63 | ||||
Performance Shares | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Vesting period (in years) | 3 years | ||||||
Unrecognized compensation cost related to unvested awards, period for recognition (in years) | 1 year 3 months 18 days | ||||||
Unrecognized compensation cost related to unvested RSUs | $ 2,700 | ||||||
Performance Shares | Maximum | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Range of shares to be received (as a percent) | 200.00% | ||||||
Common Stock | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Number of shares as a result of conversion (in shares) | shares | 41,273,345 | 41,273,345 | |||||
Shares of common stock issued under the ESPP (in shares) | shares | 345,051 | 301,842 | 210,775 | ||||
Exercise of common stock warrants (in shares) | shares | 737,807 |
Common Stock and Stockholders_4
Common Stock and Stockholders' Equity - Shares Available for Issuance (Details) - shares | Jan. 31, 2022 | Jan. 31, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for grant (in shares) | 14,185,048 | 13,060,282 |
Total common stock reserved at end of period (in shares) | 31,423,609 | |
Stock options and RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding stock options and unvested RSUs outstanding (in shares) | 14,639,489 | |
Number of shares available for grant (in shares) | 14,185,048 | |
ESPP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for grant (in shares) | 2,599,072 |
Common Stock and Stockholders_5
Common Stock and Stockholders' Equity - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Jan. 31, 2022 | Jan. 31, 2021 | |
Number of Shares | |||
Outstanding at beginning of period (in shares) | 11,177,838 | ||
Granted (in shares) | 3,041,000 | 183,946 | |
Exercised (in shares) | (2,603,432) | ||
Canceled (in shares) | (382,466) | ||
Outstanding at end of period (in shares) | 8,375,866 | 11,177,838 | |
Vested as of end of period (in shares) | 6,649,688 | ||
Weighted Average Exercise Price | |||
Outstanding at beginning of period (in dollars per share) | $ 8.25 | ||
Granted (in dollars per share) | 40.75 | ||
Exercised (in dollars per share) | 5.78 | ||
Canceled (in dollars per share) | 18.19 | ||
Outstanding at end of period (in dollars per share) | 9.28 | $ 8.25 | |
Vested as of end of period (in dollars per share) | $ 7.07 | ||
Weighted Average Remaining Contractual Term | |||
Outstanding | 6 years 1 month 6 days | 6 years 10 months 24 days | |
Vested | 5 years 9 months 18 days | ||
Aggregate Intrinsic Value | |||
Outstanding | $ 198,828 | $ 452,452 | |
Vested | $ 172,579 |
Common Stock and Stockholders_6
Common Stock and Stockholders' Equity - Assumptions Used to Calculate Fair Value of Employee Stock Option Grants Made (Details) | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | ||
Expected volatility, minimum | 39.20% | ||
Expected volatility, maximum | 48.40% | ||
Risk-free interest rate, minimum | 1.53% | ||
Risk-free interest rate, maximum | 2.43% | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 6 months | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 2 years 1 month 6 days | ||
Employee | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility, minimum | 43.80% | 43.00% | 41.70% |
Expected volatility, maximum | 46.90% | 44.10% | 42.80% |
Risk-free interest rate, minimum | 1.04% | 0.20% | 1.39% |
Risk-free interest rate, maximum | 1.35% | 0.52% | 2.48% |
Employee | Stock options | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 3 years 8 months 12 days | 5 years 6 months | |
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 | 6 years 10 months 24 days |
Common Stock and Stockholders_7
Common Stock and Stockholders' Equity - Restricted Stock Units and Performance Stock Units Activity (Details) | 12 Months Ended |
Jan. 31, 2022$ / sharesshares | |
RSUs | |
Number of RSUs | |
Outstanding at beginning of period (in shares) | shares | 3,971,128 |
Granted (in shares) | shares | 4,449,624 |
Vested (in shares) | shares | (925,400) |
Canceled (in shares) | shares | (1,467,151) |
Outstanding at end of period (in shares) | shares | 6,028,201 |
Weighted Average Grant Date Fair Value Per Share | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 23.60 |
Granted (in dollars per share) | $ / shares | 41.23 |
Vested (in dollars per share) | $ / shares | 26.53 |
Canceled (in dollars per share) | $ / shares | 29.30 |
Outstanding at end of period (in dollars per share) | $ / shares | $ 34.77 |
Performance Shares | |
Number of RSUs | |
Outstanding at beginning of period (in shares) | shares | 0 |
Granted (in shares) | shares | 127,309 |
Vested (in shares) | shares | 0 |
Canceled (in shares) | shares | (9,608) |
Outstanding at end of period (in shares) | shares | 117,701 |
Weighted Average Grant Date Fair Value Per Share | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 41.17 |
Vested (in dollars per share) | $ / shares | 0 |
Canceled (in dollars per share) | $ / shares | 41.17 |
Outstanding at end of period (in dollars per share) | $ / shares | $ 41.17 |
Common Stock and Stockholders_8
Common Stock and Stockholders' Equity - Schedule of Assumptions Used to Calculate Fair Value of Shares to be Granted Under ESPP (Details) | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | ||
Expected volatility, minimum | 39.20% | ||
Expected volatility, maximum | 48.40% | ||
Risk-free interest rate, minimum | 1.53% | ||
Risk-free interest rate, maximum | 2.43% | ||
ESPP | Employee | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility, minimum | 41.20% | 39.20% | |
Expected volatility, maximum | 53.90% | 61.60% | |
Risk-free interest rate, minimum | 0.05% | 0.08% | |
Risk-free interest rate, maximum | 1.64% | 2.39% | |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 6 months | ||
Minimum | ESPP | Employee | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 6 months | 6 months | |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 2 years 1 month 6 days | ||
Maximum | ESPP | Employee | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 2 years | 2 years 1 month 6 days |
Common Stock and Stockholders_9
Common Stock and Stockholders' Equity - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | $ 70,033 | $ 43,231 | $ 27,205 |
Stock options | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
One-time stock-based compensation expense related to modification of certain option awards | 3,100 | ||
Cost of revenue | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 3,751 | 1,702 | 1,018 |
Research and development | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 23,764 | 11,095 | 5,566 |
Sales and marketing | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 19,012 | 14,733 | 8,924 |
General and administrative | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | $ 23,506 | $ 15,701 | $ 11,697 |
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 | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Numerator: | |||
Net loss | $ (107,455) | $ (68,903) | $ (50,339) |
Denominator: | |||
Weighted Average Number of Shares Outstanding, Diluted | 84,514 | 79,614 | 65,544 |
Weighted average shares used in calculating net loss per share, basic (in shares) | 84,514 | 79,614 | 65,544 |
Net loss per share, basic (in dollars per share) | $ (1.27) | $ (0.87) | $ (0.77) |
Net loss per share, diluted (in dollars per share) | $ (1.27) | $ (0.87) | $ (0.77) |
Net Loss Per Share - Anti-dilut
Net Loss Per Share - Anti-dilutive Securities (Details) - shares shares in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 21,888 | 22,656 | 15,936 |
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) | 14,522 | 15,149 | 15,613 |
Unvested early exercised stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 | 76 |
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 | 0 | 180 |
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) | 71 | 73 | 67 |
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) | 122 | 261 | 0 |
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 | 0 |
Income Taxes - Components of Lo
Income Taxes - Components of Loss Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (111,426) | $ (77,956) | $ (53,485) |
Foreign | 4,506 | 5,147 | 3,821 |
Loss before (provision for) benefit from income taxes | $ (106,920) | $ (72,809) | $ (49,664) |
Income Taxes - Components of In
Income Taxes - Components of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Current | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 0 | (41) | 126 |
Foreign | 181 | 452 | 25 |
Total current tax expense | 181 | 411 | 151 |
Deferred | |||
Federal | 0 | (4,038) | 0 |
State | 0 | (977) | (1) |
Foreign | 354 | 698 | 525 |
Total deferred tax expense (benefit) | 354 | (4,317) | 524 |
Provision (benefit from) for income taxes | $ 535 | $ (3,906) | $ 675 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income taxes computed at U.S. federal statutory rate | $ (22,453) | $ (15,291) | $ (10,429) |
State taxes, net of federal benefit | (8,652) | (5,012) | (4,901) |
Stock-based compensation | (15,423) | (8,443) | (3,739) |
Foreign rate differential | (411) | 69 | (253) |
Tax credits, net of FIN48 reserves | (1,426) | (846) | (3,271) |
Change in valuation allowance | 48,364 | 25,076 | 25,390 |
Charitable contributions | 0 | 0 | (1,960) |
Other | 536 | 541 | (162) |
Provision (benefit from) for income taxes | $ 535 | $ (3,906) | $ 675 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Tax Credit Carryforward [Line Items] | |||
State taxes, net of federal benefit | $ (8,652) | $ (5,012) | $ (4,901) |
Increase in valuation allowance | 64,100 | 7,900 | |
Unrecognized tax benefits that would affect the effective tax rate if recognized | 1,100 | $ 1,000 | $ 1,100 |
Federal | |||
Tax Credit Carryforward [Line Items] | |||
Operating loss carryforwards | 396,800 | ||
Federal net operating loss carryforwards, subject to expiration | 56,300 | ||
Federal net operating loss carryforwards, not subject to expiration | 340,500 | ||
Research and development credit carryforwards | 8,600 | ||
California | |||
Tax Credit Carryforward [Line Items] | |||
Operating loss carryforwards | 21,200 | ||
Research and development credit carryforwards | 5,600 | ||
Canada | |||
Tax Credit Carryforward [Line Items] | |||
Operating loss carryforwards | 1,900 | ||
Research and development credit carryforwards | $ 800 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Deferred tax assets: | ||
Net operating losses | $ 100,770 | $ 59,125 |
Allowances and accruals | 8,564 | 6,597 |
Stock-based compensation | 11,343 | 7,990 |
Charitable contributions | 4,025 | 3,988 |
Tax credits | 9,035 | 6,631 |
Lease liabilities | 6,798 | 8,096 |
Other | 2,475 | 677 |
Gross deferred tax assets | 143,010 | 93,104 |
Less: valuation allowance | (122,091) | (57,944) |
Net deferred tax assets | 20,919 | 35,160 |
Deferred tax liabilities: | ||
Convertible senior notes | 0 | (15,450) |
Deferred commissions | (11,156) | (8,026) |
Intangible assets | (6,608) | (6,908) |
Lease assets | (5,169) | (6,274) |
Other | (113) | (277) |
Gross deferred tax liabilities | (23,046) | (36,935) |
Net deferred tax liabilities | $ (2,127) | $ (1,775) |
Income Taxes Income Taxes - Sum
Income Taxes Income Taxes - Summary of Activity Related to Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of period | $ 5,018 | $ 4,043 | $ 6,644 |
Additions related to prior years | 86 | 29 | 71 |
Reductions related to prior years | (70) | (8) | (3,515) |
Additions related to current year | 1,156 | 591 | 843 |
Additions related to acquired positions | 0 | 363 | 0 |
Balance at end of period | $ 6,190 | $ 5,018 | $ 4,043 |
Geographic Information - Revenu
Geographic Information - Revenue by Location (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 281,396 | $ 213,556 | $ 166,351 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 212,829 | 163,313 | 129,728 |
International | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 68,567 | $ 50,243 | $ 36,623 |
Geographic Information - Additi
Geographic Information - Additional Information (Details) - Property, Plant and Equipment - Geographic Concentration Risk | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
United States | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 86.00% | 87.00% |
Canada | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 14.00% | 13.00% |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Mar. 08, 2022USD ($) |
Subsequent Event | Catalytic | |
Subsequent Event [Line Items] | |
Purchase consideration | $ 70 |
401(k) Plan (Details)
401(k) Plan (Details) - USD ($) $ in Millions | Jan. 01, 2022 | Dec. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 |
Retirement Benefits [Abstract] | |||||
Employer matching contribution, percent of each participant's employee contributions (as a percent) | 2.00% | 1.00% | |||
Employer contributions, percent of eligible wages during the period (as a percent) | 2.00% | 1.00% | |||
Expense recognized related to matching contributions | $ 1.3 | $ 0.8 | $ 0.4 |