Cover Page
Cover Page - shares | 9 Months Ended | |
Oct. 31, 2022 | Nov. 30, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-38856 | |
Entity Registrant Name | PAGERDUTY, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-2793871 | |
Entity Address, Address Line One | 600 Townsend St. | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94103 | |
City Area Code | 844 | |
Local Phone Number | 800-3889 | |
Title of 12(b) Security | Common Stock, $0.000005 par value | |
Trading Symbol | PD | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 89,975,860 | |
Entity Central Index Key | 0001568100 | |
Current Fiscal Year End Date | --01-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 31, 2022 | Jan. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 262,333 | $ 349,785 |
Investments | 197,104 | 193,571 |
Accounts receivable, net of allowance for credit losses of $1,515 and $1,809 as of October 31, 2022 and January 31, 2022, respectively | 72,628 | 75,279 |
Deferred contract costs, current | 18,007 | 16,672 |
Prepaid expenses and other current assets | 13,545 | 9,777 |
Total current assets | 563,617 | 645,084 |
Property and equipment, net | 18,339 | 18,229 |
Deferred contract costs, non-current | 26,968 | 26,159 |
Lease right-of-use assets | 15,141 | 20,227 |
Goodwill | 118,862 | 72,126 |
Intangible assets, net | 40,029 | 23,133 |
Other assets | 1,054 | 1,490 |
Total assets | 784,010 | 806,448 |
Current liabilities: | ||
Accounts payable | 7,692 | 9,505 |
Accrued expenses and other current liabilities | 12,884 | 13,640 |
Accrued compensation | 34,955 | 35,327 |
Deferred revenue, current | 175,380 | 162,881 |
Lease liabilities, current | 6,438 | 5,637 |
Total current liabilities | 237,349 | 226,990 |
Convertible senior notes, net | 282,445 | 281,069 |
Deferred revenue, non-current | 4,335 | 7,343 |
Lease liabilities, non-current | 14,155 | 20,912 |
Other liabilities | 3,826 | 3,159 |
Total liabilities | 542,110 | 539,473 |
Commitments and contingencies (Note 12) | ||
Redeemable non-controlling interest (Note 3) | 1,551 | 0 |
Stockholders’ equity: | ||
Common stock | 0 | 0 |
Additional paid-in capital | 696,169 | 616,467 |
Accumulated other comprehensive loss | (3,136) | (669) |
Accumulated deficit | (452,684) | (348,823) |
Total stockholders’ equity | 240,349 | 266,975 |
Total liabilities, redeemable non-controlling interest, and stockholders’ equity | $ 784,010 | $ 806,448 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Oct. 31, 2022 | Jan. 31, 2022 |
Current assets: | ||
Allowance for doubtful accounts | $ 1,515 | $ 1,809 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Income Statement [Abstract] | ||||
Revenue | $ 94,203 | $ 71,760 | $ 269,827 | $ 202,887 |
Cost of revenue | 18,007 | 12,039 | 52,090 | 34,433 |
Gross profit | 76,196 | 59,721 | 217,737 | 168,454 |
Operating expenses: | ||||
Research and development | 35,004 | 24,554 | 100,307 | 68,062 |
Sales and marketing | 47,118 | 40,176 | 143,001 | 118,224 |
General and administrative | 26,616 | 19,808 | 77,316 | 56,680 |
Total operating expenses | 108,738 | 84,538 | 320,624 | 242,966 |
Loss from operations | (32,542) | (24,817) | (102,887) | (74,512) |
Interest income | 1,382 | 705 | 2,760 | 2,306 |
Interest expense | (1,360) | (1,350) | (4,072) | (4,045) |
Other expense, net | (172) | (729) | (1,326) | (1,931) |
Loss before (provision for) benefit from income taxes | (32,692) | (26,191) | (105,525) | (78,182) |
(Provision for) benefit from income taxes | (112) | (150) | 1,302 | (378) |
Net loss | (32,804) | (26,341) | (104,223) | (78,560) |
Net loss attributable to redeemable non-controlling interest | (262) | 0 | (362) | 0 |
Net loss attributable to PagerDuty, Inc. | $ (32,542) | $ (26,341) | $ (103,861) | $ (78,560) |
Net loss per share, basic, attributable to PagerDuty, Inc. (in dollars per share) | $ (0.36) | $ (0.31) | $ (1.18) | $ (0.94) |
Net loss per share, diluted, attributable to PagerDuty, Inc. (in dollars per share) | $ (0.36) | $ (0.31) | $ (1.18) | $ (0.94) |
Weighted average shares used in calculating net loss per share, basic (in shares) | 89,285 | 85,092 | 88,200 | 83,979 |
Weighted average shares used in calculating net loss per share, diluted (in shares) | 89,285 | 85,092 | 88,200 | 83,979 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (32,804) | $ (26,341) | $ (104,223) | $ (78,560) |
Unrealized loss on investments | (1,050) | (222) | (1,952) | (534) |
Foreign currency translation adjustments | (374) | 0 | (515) | 0 |
Total comprehensive loss | (34,228) | (26,563) | (106,690) | (79,094) |
Net loss attributable to redeemable non-controlling interest | (262) | 0 | (362) | 0 |
Foreign currency translation adjustments, attributable to redeemable non-controlling interest | 2 | 0 | 5 | 0 |
Comprehensive loss attributable to redeemable non-controlling interest | (260) | 0 | (357) | 0 |
Comprehensive loss attributable to PagerDuty, Inc. | $ (33,968) | $ (26,563) | $ (106,333) | $ (79,094) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment |
Beginning balance (in shares) at Jan. 31, 2021 | 82,882,424 | |||||||
Beginning balance at Jan. 31, 2021 | $ 366,727 | $ (61,736) | $ 0 | $ 614,494 | $ (68,478) | $ 343 | $ (248,110) | $ 6,742 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock upon exercise of stock options and restricted stock agreements (in shares) | 2,010,991 | |||||||
Issuance of common stock upon exercise of stock options and restricted stock agreements | 12,508 | 12,508 | ||||||
Vesting of restricted stock units, net of employee payroll taxes (in shares) | 677,323 | |||||||
Vesting of restricted stock units, net of employee payroll taxes | (18,619) | (18,619) | ||||||
Shares issued related to a business combination (in shares) | 2,073 | |||||||
Issuance of common stock in connection with the employee stock purchase plan (in shares) | 222,474 | |||||||
Issuance of common stock in connection with employee stock purchase plan | 4,889 | 4,889 | ||||||
Other comprehensive loss | (534) | (534) | ||||||
Stock-based compensation | 48,714 | 48,714 | ||||||
Net loss attributable to PagerDuty, Inc. | (78,560) | (78,560) | ||||||
Ending balance (in shares) at Oct. 31, 2021 | 85,795,285 | |||||||
Ending balance at Oct. 31, 2021 | 273,389 | $ 0 | 593,508 | (191) | (319,928) | |||
Beginning balance (in shares) at Jul. 31, 2021 | 84,801,124 | |||||||
Beginning balance at Jul. 31, 2021 | 285,172 | $ 0 | 578,728 | 31 | (293,587) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock upon exercise of stock options and restricted stock agreements (in shares) | 724,725 | |||||||
Issuance of common stock upon exercise of stock options and restricted stock agreements | 4,286 | 4,286 | ||||||
Vesting of restricted stock units, net of employee payroll taxes (in shares) | 269,436 | |||||||
Vesting of restricted stock units, net of employee payroll taxes | (7,616) | (7,616) | ||||||
Other comprehensive loss | (222) | (222) | ||||||
Stock-based compensation | 18,110 | 18,110 | ||||||
Net loss attributable to PagerDuty, Inc. | (26,341) | (26,341) | ||||||
Ending balance (in shares) at Oct. 31, 2021 | 85,795,285 | |||||||
Ending balance at Oct. 31, 2021 | 273,389 | $ 0 | 593,508 | (191) | (319,928) | |||
Beginning balance (in shares) at Jan. 31, 2022 | 86,758,380 | |||||||
Beginning balance at Jan. 31, 2022 | 266,975 | $ 0 | 616,467 | (669) | (348,823) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock upon exercise of stock options and restricted stock agreements (in shares) | 1,513,581 | |||||||
Issuance of common stock upon exercise of stock options and restricted stock agreements | 8,728 | 8,728 | ||||||
Vesting of restricted stock units, net of employee payroll taxes (in shares) | 1,349,991 | |||||||
Vesting of restricted stock units, net of employee payroll taxes | (22,187) | (22,187) | ||||||
Shares issued related to a business combination (in shares) | 62,972 | |||||||
Issuance of common stock in connection with the employee stock purchase plan (in shares) | 280,725 | |||||||
Issuance of common stock in connection with employee stock purchase plan | 5,736 | 5,736 | ||||||
Other comprehensive loss | (2,467) | (2,467) | ||||||
Stock-based compensation | 87,425 | 87,425 | ||||||
Net loss attributable to PagerDuty, Inc. | (103,861) | (103,861) | ||||||
Ending balance (in shares) at Oct. 31, 2022 | 89,965,649 | |||||||
Ending balance at Oct. 31, 2022 | 240,349 | $ 0 | 696,169 | (3,136) | (452,684) | |||
Beginning balance (in shares) at Jul. 31, 2022 | 88,928,089 | |||||||
Beginning balance at Jul. 31, 2022 | 250,272 | $ 0 | 672,126 | (1,712) | (420,142) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock upon exercise of stock options and restricted stock agreements (in shares) | 328,471 | |||||||
Issuance of common stock upon exercise of stock options and restricted stock agreements | 2,137 | 2,137 | ||||||
Vesting of restricted stock units, net of employee payroll taxes (in shares) | 709,089 | |||||||
Vesting of restricted stock units, net of employee payroll taxes | (9,864) | (9,864) | ||||||
Other comprehensive loss | (1,424) | (1,424) | ||||||
Stock-based compensation | 31,770 | 31,770 | ||||||
Net loss attributable to PagerDuty, Inc. | (32,542) | (32,542) | ||||||
Ending balance (in shares) at Oct. 31, 2022 | 89,965,649 | |||||||
Ending balance at Oct. 31, 2022 | $ 240,349 | $ 0 | $ 696,169 | $ (3,136) | $ (452,684) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Cash flows from operating activities | ||
Net loss attributable to PagerDuty, Inc. | $ (103,861) | $ (78,560) |
Net loss attributable to redeemable non-controlling interest (Note 3) | (362) | 0 |
Net loss | (104,223) | (78,560) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 12,778 | 6,160 |
Amortization of deferred contract costs | 14,178 | 10,651 |
Amortization of debt issuance costs | 1,376 | 1,350 |
Stock-based compensation | 86,478 | 47,866 |
Non-cash lease expense | 2,913 | 3,331 |
Tax benefit related to release of valuation allowance | (1,330) | 0 |
Other | 1,686 | 2,592 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 3,048 | 360 |
Deferred contract costs | (16,323) | (16,842) |
Prepaid expenses and other assets | (2,934) | (857) |
Accounts payable | (1,117) | 3,836 |
Accrued expenses and other liabilities | (1,350) | (79) |
Accrued compensation | (624) | 3,760 |
Deferred revenue | 8,635 | 12,878 |
Lease liabilities | (3,783) | (3,812) |
Net cash used in operating activities | (592) | (7,366) |
Cash flows from investing activities | ||
Purchases of property and equipment | (3,755) | (1,376) |
Capitalization of internal-use software costs | (2,725) | (2,701) |
Business acquisition, net of cash acquired | (66,262) | (160) |
Asset acquisition | (1,845) | 0 |
Purchases of available-for-sale investments | (155,310) | (150,608) |
Proceeds from maturities of available-for-sale investments | 149,625 | 156,616 |
Proceeds from sales of available-for-sale investments | 0 | 27,380 |
Net cash (used in) provided by investing activities | (80,272) | 29,151 |
Cash flows from financing activities | ||
Investment from redeemable non-controlling interest holder | 1,908 | 0 |
Proceeds from employee stock purchase plan | 5,736 | 4,889 |
Proceeds from issuance of common stock upon exercise of stock options | 8,459 | 12,517 |
Employee payroll taxes paid related to net share settlement of restricted stock units | (22,187) | (18,619) |
Net cash used in financing activities | (6,084) | (1,213) |
Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash | (504) | 0 |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (87,452) | 20,572 |
Cash, cash equivalents, and restricted cash at beginning of period | 349,785 | 339,166 |
Cash, cash equivalents, and restricted cash at end of period | 262,333 | 359,738 |
Supplemental cash flow data: | ||
Cash paid for income taxes | 130 | 126 |
Cash paid for interests | 1,797 | 1,797 |
Non-cash investing and financing activities: | ||
Purchase of property and equipment, accrued but not yet paid | 828 | 823 |
Stock-based compensation capitalized in internal use software | 947 | 848 |
Bonuses capitalized in internal use software | 263 | 121 |
Receivables for cash in-transit on stock options | $ 269 | $ 9 |
Description of Business and Bas
Description of Business and Basis of Presentation | 9 Months Ended |
Oct. 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 leverages powerful machine learning to correlate, process, and predict opportunities and issues. Using incident response, event management, and automation, the Company brings 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. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated balance sheet as of January 31, 2022 was derived from the audited consolidated financial statements as of that date but does not include all of the information and notes required by GAAP for complete financial statements. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes thereto as of and for the year ended January 31, 2022, included in the Company’s Annual Report on Form 10-K, filed with the SEC. The condensed consolidated financial statements include the results of the Company, its wholly owned subsidiaries, and subsidiaries in which the Company holds a controlling interest. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, the information contained herein reflects all adjustments necessary for a fair presentation of the Company’s financial position, results of operations and comprehensive loss, statements of stockholders’ equity, and cash flows. The results of operations for the three and nine months ended October 31, 2022 are not necessarily indicative of the results to be expected for the full year ending January 31, 2023 or for any other interim period, or for any future year. The Company’s fiscal year ends on January 31. References to fiscal 2023, for example, refer to the fiscal year ending January 31, 2023. 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 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, 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. Foreign Currency Translations The functional currency for the large majority of the Company's foreign operations is the U.S. dollar, although the Company has one subsidiary use the local currency as its functional currency for the three and nine months ended October 31, 2022. When a consolidated entity’s functional currency is the local currency, the Company translates the foreign functional currency financial statements to U.S. dollars using the exchange rates at the balance sheet date for assets and liabilities, the period average exchange rates for revenues and expenses, and the historical exchange rates for equity. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Concentrations of Risk and Significant Customers The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, available-for-sale investments, and accounts receivable. All of the Company’s cash and cash equivalents and investments are invested in money market funds, U.S. Treasury securities, commercial paper, corporate debt securities, or U.S. Government agency securities that management believes to be of high credit quality. No single customer accounted for 10% of the total accounts receivable balance as of October 31, 2022 or January 31, 2022. No single customer represented 10% or more of revenue for the three and nine months ended October 31, 2022 or 2021. Segment Information The Company manages its operations and allocates resources as one operating segment. The Company’s chief operating decision maker (“CODM”) is its chief executive officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources. Refer to Note 17, “Geographic Information” for information regarding the Company's long-lived assets and revenue by geography. Related Party Transaction 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 billed $1.6 million and $2.2 million to entities associated with related parties during the nine months ended October 31, 2022 and 2021, respectively. The Company recognized $1.1 million of revenue associated with related parties during the nine months ended October 31, 2021. Other related party transactions were not material for the three and nine months ended October 31, 2022 and 2021. Significant Accounting Policies There have been no significant changes to our significant accounting policies as compared to those described in our Annual Report on Form 10-K for the fiscal year ended January 31, 2022 other than as set forth below. Redeemable Non-Controlling Interest During the quarter ended July 31, 2022, the Company established a joint venture with Japan Cloud Computing II L.P. (the “Investor”) in Japan (“PagerDuty K.K.”), which is a variable interest entity, obtaining a 51% controlling interest. The Company has consolidated the financial results of the joint venture. The agreements with the non-controlling interest holders of PagerDuty K.K. contain redemption features whereby the interest held by the non-controlling interest holders is redeemable either (i) at the option of the non-controlling interest holders or (ii) at the option of the Company, both beginning on the tenth anniversary of the initial capital contribution. The balance of the redeemable non-controlling interest is reported at the greater of the initial carrying amount adjusted for the redeemable non-controlling interest's share of earnings or losses and other comprehensive income or loss, or its estimated redemption value. The resulting changes in the estimated redemption amount are recorded with corresponding adjustments against additional paid-in-capital due to the absence of retained earnings. The carrying amount of the redeemable non-controlling interest is recorded on the Company's condensed consolidated balance sheets as temporary equity. There were no adjustments attributable to redeemable non-controlling interest in the three and nine months ended October 31, 2022. Recently Adopted Accounting Pronouncements In March 2022, the FASB issued Accounting Standard Update No. 2022-01 (“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. The Company early adopted ASU 2022-01 as of February 1, 2022 using the prospective method. The adoption of the standard impacted the accounting for the acquisition of Catalytic, Inc. (“Catalytic”) requiring the Company to measure acquired contract assets and liabilities in accordance with ASC 606. The adoption of ASU 2021-08 did not have a material impact on the condensed consolidated financial statements. |
Redeemable Non-Controlling Inte
Redeemable Non-Controlling Interest | 9 Months Ended |
Oct. 31, 2022 | |
Noncontrolling Interest [Abstract] | |
Redeemable Non-Controlling Interest | Redeemable Non-Controlling Interest In May 2022, the Company established a joint venture, PagerDuty K.K, which is a variable interest entity. The Company obtained a 51% controlling interest and has consolidated the financial results of the joint venture. The following table summarizes the activity in the redeemable non-controlling interest for the period indicated below: Three Months Ended October 31, 2022 Nine Months Ended October 31, 2022 (in thousands) Balance at beginning of period $ 1,811 $ — Investment by redeemable non-controlling interest — 1,908 Net loss attributable to redeemable non-controlling interest (262) (362) Foreign currency translation adjustments 2 5 Balance at end of period $ 1,551 $ 1,551 |
Cash, Cash Equivalents, and Inv
Cash, Cash Equivalents, and Investments | 9 Months Ended |
Oct. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Cash, Cash Equivalents, and Investments | Cash, Cash Equivalents, and InvestmentsCash, cash equivalents, and investments consisted of the following: As of October 31, 2022 As of January 31, 2022 (in thousands) Cash and cash equivalents Cash $ 118,604 $ 268,091 Money market funds 141,730 73,194 Commercial paper 1,999 5,500 U.S. Treasury securities — 3,000 Total cash and cash equivalents $ 262,333 $ 349,785 Available-for-sale investments: U.S. Treasury securities $ 50,569 $ 41,105 Commercial paper 31,638 39,483 Corporate debt securities 108,964 112,983 U.S. Government agency securities 5,933 — Total available-for-sale investments $ 197,104 $ 193,571 The following tables summarize the Company’s investments’ adjusted cost, net unrealized losses, and fair value by significant investment category as of October 31, 2022 and January 31, 2022. Gross realized gains or losses from sales of available-for-sale securities were not material for the three and nine months ended October 31, 2022. As of October 31, 2022 Cost Basis Unrealized Loss Recorded Basis (in thousands) Available-for-sale investments: U.S. Treasury securities $ 50,685 $ (116) $ 50,569 Commercial paper 31,918 (280) 31,638 Corporate debt securities 111,124 (2,160) 108,964 U.S. Government agency securities 5,998 (65) 5,933 Total available-for-sale investments $ 199,725 $ (2,621) $ 197,104 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 available-for-sale investments $ 194,240 $ (669) $ 193,571 The following tables present the Company’s available-for-sale securities by contractual maturity date as of October 31, 2022 and January 31, 2022: As of October 31, 2022 Cost Basis Recorded Basis (in thousands) Due within one year $ 150,320 $ 148,732 Due between one to five years 49,405 48,372 Total $ 199,725 $ 197,104 As of January 31, 2022 Cost Basis Recorded Basis (in thousands) Due within one year $ 154,692 $ 154,455 Due between one to five years 39,548 39,116 Total $ 194,240 $ 193,571 As of October 31, 2022, there were 92 available-for-sale securities in an unrealized loss position, 27 of which were in a continuous unrealized loss position for the last 12 months. The total unrealized loss related to the 27 securities was $1.0 million. 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 the seven securities was $0.7 million. 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. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 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 October 31, 2022 Level 1 Level 2 Level 3 Total (in thousands) Money market funds $ 141,730 $ — $ — $ 141,730 U.S. Treasury securities — 50,569 — 50,569 Commercial paper 1,999 31,638 — 33,637 Corporate debt securities — 108,964 — 108,964 U.S. Government agency securities — 5,933 — 5,933 Total $ 143,729 $ 197,104 $ — $ 340,833 Included in cash equivalents $ 143,729 Included in investments $ 197,104 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 The Company’s assets that are measured by management at fair value on a recurring basis are generally classified within Level 1 or Level 2 of the fair value hierarchy. The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. As of October 31, 2022 and January 31, 2022, the Company’s Level 2 securities were priced by pricing vendors. These pricing vendors utilize observable market information in pricing these securities or, if specific prices are not available for these securities, use other observable inputs like market transactions involving identical or comparable securities. The carrying amounts of certain financial instruments, including cash held in banks, accounts receivable, and accounts payable approximate fair value due to their short-term maturities and are excluded from the fair value table above. Convertible Senior Notes As of October 31, 2022, the estimated fair value of our 1.25% Convertible Senior Notes due 2025 (the “Notes”) was approximately $282.6 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 | 9 Months Ended |
Oct. 31, 2022 | |
Business Combinations [Abstract] | |
Business Combinations | Business CombinationsOn March 8, 2022, the Company completed the acquisition of Catalytic, a provider of a no-code/low-code workflow automation application. The Company acquired Catalytic for purchase consideration of $68.8 million in cash. The acquisition was accounted for as a business combination and the acquired assets and liabilities were recorded at their preliminary fair values on the acquisition date and any excess was recorded as goodwill. The values assigned to the assets acquired and liabilities assumed are based on preliminary estimates of fair value available as of the date of this Quarterly Report on Form 10-Q and may be adjusted during the measurement period of up to 12 months from the date of acquisition as further information becomes available. Any changes in the fair values of the assets acquired and liabilities assumed during the measurement period may result in adjustments to goodwill. As of October 31, 2022, the primary area that remains preliminary relates to the valuation of certain tax-related items. The following table presents the preliminary fair values of acquired assets and liabilities recorded in the Company’s condensed consolidated balance sheet as of the acquisition date: (in thousands) Cash and cash equivalents $ 2,506 Accounts receivable and other assets 801 Prepaid and other current assets 841 Intangible assets 21,800 Goodwill 46,736 Accounts payable and other liabilities (408) Deferred revenue (856) Other tax liabilities (1,322) Deferred tax liability (1,330) Total purchase consideration $ 68,768 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 for approximately $1.3 million, generated primarily from the difference between the tax basis and fair value of the acquired intangible assets, which increased goodwill. As the Company has a full valuation allowance as of October 31, 2022, the Company recorded an income tax benefit for this net deferred tax liability in the condensed consolidated statement of operations for the nine months ended October 31, 2022. Refer to Note 16, "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) Developed technology $ 19,200 3 Customer relationships $ 2,600 10 This business combination resulted in increases of $46.7 million to goodwill, $19.2 million to developed technology and $2.6 million to customer relationships. The Company also entered into holdback agreements with the two founders of Catalytic with $3.4 million held back in cash which are subject to the recipients’ continued service with the Company and thus excluded from the purchase price and will be recognized ratably as research and development expense over the required two-year service period. From the date of the acquisition, the financial results of Catalytic have been included in and are immaterial to the Company’s condensed consolidated financial statements. Pro forma revenue and results of operations have not been presented because the historical results are not material to the condensed consolidated financial statements in any period presented. |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets | 9 Months Ended |
Oct. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Acquired Intangible Assets | Goodwill and Acquired Intangible Assets The changes in the carrying amount of goodwill for the nine months ended October 31, 2022 are as follows: Goodwill (in thousands) Balance as of January 31, 2022 $ 72,126 Goodwill resulting from business combination 46,736 Balance as of October 31, 2022 $ 118,862 Acquired intangible assets subject to amortization consist of the following: As of October 31, 2022 Cost Accumulated Amortization Net Weighted Average (in thousands) (in years) Customer relationships $ 24,400 $ (4,709) $ 19,691 8.1 Developed technology 24,800 (6,462) 18,338 2.5 Trademarks 400 (400) — 0.0 Assembled workforce 2,527 (527) 2,000 1.6 Total acquired intangibles, net $ 52,127 $ (12,098) $ 40,029 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 Total acquired intangibles, net $ 27,800 $ (4,667) $ 23,133 For the three months ended October 31, 2022 and 2021, amortization expense related to intangible assets was $2.6 million and $0.9 million, respectively. For the nine months ended October 31, 2022 and 2021, amortization expense related to acquired intangible assets was $7.4 million and $2.6 million, respectively. |
Property and Equipment, Net
Property and Equipment, Net | 9 Months Ended |
Oct. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net, consisted of the following: As of October 31, 2022 As of January 31, 2022 (in thousands) Leasehold improvements $ 15,599 $ 15,392 Computers and equipment 9,168 7,483 Furniture and fixtures 4,774 4,686 Capitalized internal-use software 9,389 6,136 Gross property and equipment (1) 38,930 33,697 Accumulated depreciation and amortization (20,591) (15,468) Property and equipment, net $ 18,339 $ 18,229 (1) Gross property and equipment includes construction-in-progress for leasehold improvements and capitalized internal-use software of $4.6 million and $6.9 million that had not yet been placed in service as of October 31, 2022 and January 31, 2022, respectively. The costs associated with construction-in-progress are not amortized until the asset is available for its intended use. Depreciation and amortization expense was $1.8 million and $1.3 million for the three months ended October 31, 2022 and 2021, respectively. Depreciation and amortization expense was $5.1 million and $3.4 million for the nine months ended October 31, 2022 and 2021, respectively. In the nine months ended October 31, 2022, the Company recorded an impairment charge of $0.7 million on its capitalized internal-use software included in construction-in-progress. It was determined that the developed technology would not be placed in service as the technology was replaced with the acquired technology of Catalytic. |
Deferred Contract Costs
Deferred Contract Costs | 9 Months Ended |
Oct. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Contract Costs | Deferred Contract CostsDeferred contract costs, which primarily consist of deferred sales commissions, were $45.0 million and $42.8 million as of October 31, 2022 and January 31, 2022, respectively. Amortization expense for deferred contract costs was $4.9 million and $3.9 million for the three months ended October 31, 2022 and 2021, respectively. Amortization expense for deferred contract costs was $14.2 million and $10.7 million for the nine months ended October 31, 2022 and 2021, respectively. There was no impairment charge related to the costs capitalized for the periods presented.Deferred Revenue and Performance Obligations The following table presents the changes to the Company’s deferred revenue: Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 (in thousands) Deferred revenue, beginning of period $ 169,534 $ 134,002 $ 170,224 $ 129,972 Billings 104,384 80,608 278,462 215,765 Deferred revenue assumed in the Catalytic acquisition — — 856 — Revenue recognized (94,203) (71,760) (269,827) (202,887) Deferred revenue, end of period $ 179,715 $ 142,850 $ 179,715 $ 142,850 For the three months ended October 31, 2022 and 2021, the majority of revenue recognized was from the deferred revenue balances at the beginning of each quarter. For the nine months ended October 31, 2022 and 2021, approximately half of revenue recognized was from the deferred revenue balance at the beginning of the period. As of October 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 $174.3 million. The Company expects to satisfy the substantial majority of these unsatisfied performance obligations over the next 24 months and the remainder thereafter. The Company applied the optional exemption for subscriptions with terms of less than one year. |
Leases
Leases | 9 Months Ended |
Oct. 31, 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 2023 and fiscal 2029. The operating lease agreements generally provide for rental payments on a graduated basis and for options to renew, which could increase future minimum lease payments if exercised. Lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The lease right-of-use assets also include any lease payments made and exclude lease incentives such as tenant improvement allowances. The operating leases typically include non-lease components such as common-area maintenance costs. The Company has elected to include non-lease components with lease payments for the purpose of calculating lease right-of-use assets and liabilities, to the extent that they are fixed. Non-lease components that are not fixed are expensed as incurred as variable lease payments. Leases with a term of one year or less are not recognized on our condensed consolidated balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The following table presents information about leases on the condensed consolidated balance sheet. As of October 31, 2022 As of January 31, 2021 (in thousands) Assets Lease right-of-use assets $ 15,141 $ 20,227 Liabilities Lease liabilities 6,438 5,637 Lease liabilities, non-current 14,155 20,912 As of October 31, 2022, the weighted average remaining lease term was 3.9 years and the weighted average discount rate used to determine the net present value of the lease liabilities was 3.7%. The following table presents information about leases on the condensed consolidated statement of operations. Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 (in thousands) Operating lease expense $ 1,371 $ 1,401 $ 4,293 $ 4,173 Short-term lease expense 484 304 1,342 473 Variable lease expense 285 313 957 628 The following table presents supplemental cash flow information about the Company’s leases. Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 (in thousands) Cash paid for amounts included in the measurement of lease liabilities $ 1,601 $ 1,581 $ 4,840 $ 4,724 |
Debt and Financing Arrangements
Debt and Financing Arrangements | 9 Months Ended |
Oct. 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 us, were $278.2 million. The Notes are senior, unsecured obligations of the Company and accrue interest payable semiannually in arrears on January 1 and July 1 of each year, beginning on January 1, 2021, at a rate of 1.25% per year. The Notes will mature on July 1, 2025, unless such notes are converted, redeemed or repurchased earlier. The Notes are convertible into cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s election in the manner and subject to the terms and conditions provided in the Indenture. Holders of the Notes may convert all or any portion of their Notes at their option at any time prior to the close of business on April 1, 2025, only under the following circumstances: • During any fiscal quarter commencing after the fiscal quarter ended October 31, 2020 (and only during such fiscal quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • During the five business day period after any ten consecutive trading day period (the measurement period) in which the “trading price” (as defined in the Indenture) per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; • If the Company calls such Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or • Upon the occurrence of specified corporate events, as noted in the Indenture. On or after April 1, 2025 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders of the Notes may convert all or any portion of their Notes at any time, regardless of the foregoing circumstances. The conversion rate will initially be 24.9507 shares of common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $40.08 per share of common stock. The conversion rate is subject to adjustment under certain circumstances in accordance with the terms of the Indenture, but will not be adjusted for accrued and unpaid interest. In addition, following certain corporate events that occur prior to the maturity date, the Company will, in certain circumstances, increase the conversion rate for a holder who elects to convert its Notes in connection with a fundamental change, as defined in the Indenture. The Company may not redeem the Notes prior to July 6, 2023. The Company may redeem for cash all or any portion of the Notes, at its option, on a redemption date occurring on or after July 6, 2023 and prior to the 41st scheduled trading day immediately preceding the maturity date, if the last reported sale price of the common stock has been at least 130% of the conversion price for the Notes then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the Notes. If the Company undergoes a fundamental change (as defined in the Indenture), holders may require the Company to repurchase for cash all or any portion of their Notes at a fundamental change repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date. The Indenture contains customary terms and covenants, including that upon certain events of default occurring and continuing, the trustee or the holders of at least 25% in aggregate principal amount of the outstanding Notes may declare the entire principal of all the Notes plus accrued and unpaid interest to be immediately due and payable. The Company accounts for the Notes as a single liability in accordance with ASU 2020-06 “Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”. The carrying amount of the Notes is $282.4 million as of October 31, 2022, with principal of $287.5 million, net of unamortized issuance costs of $5.1 million. The Notes were classified as long-term liabilities as of October 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 Notes as of October 31, 2022 and as of January 31, 2022 was as follows: As of October 31, 2022 As of January 31, 2022 (in thousands) Principal $ 287,500 $ 287,500 Less: unamortized issuance costs (5,055) (6,431) Net carrying amount $ 282,445 $ 281,069 Interest expense recognized related to the Notes is as follows: Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 (in thousands) Contractual interest expense $ 899 $ 898 $ 2,696 $ 2,695 Amortization of debt issuance costs 461 452 1,376 1,350 Total interest expense related to the Notes $ 1,360 $ 1,350 $ 4,072 $ 4,045 Capped Call Transactions In connection with the offering of the Notes, the Company entered into privately negotiated capped call transactions (the “Capped Calls”) with certain financial institution counterparties (the “Option Counterparties”). The Capped Calls are generally intended to reduce or offset the potential dilution to the common stock upon any conversion of the Notes with such reduction or offset, as the case may be, subject to a cap based on the cap price. For accounting purposes, the Capped Calls are separate transactions, and not part of the terms of the Notes. The Capped Calls are recorded in stockholders’ equity and are not accounted for as derivatives. The cost of $35.7 million incurred to purchase the Capped Calls were recorded as a reduction to additional paid-in capital in the accompanying condensed consolidated balance sheet. The Capped Calls each have an initial strike price of approximately $40.08 per share, subject to certain adjustments, which corresponds to the initial conversion price of the Notes. The Capped Calls have an initial cap price of $61.66 per share, subject to certain adjustments. The Capped Calls cover, subject to anti-dilution adjustments, approximately 7.2 million shares of our common stock. The Capped Calls are subject to automatic exercise over a 40 trading day period commencing on May 2, 2025, subject to earlier termination under certain circumstances. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters From time to time, the Company may be subject to various claims and other legal matters arising in the ordinary course of business. The Company accrues estimates for resolution of legal and other contingencies when losses are probable and estimable. The outcomes of legal proceedings are subject to significant uncertainties. The Company is not currently a party to any pending legal proceedings for which management believes the outcome, individually or in the aggregate, would have a material adverse effect on its business, operating results, cash flows, or financial condition. 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, the Company 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 the Company, or from intellectual property infringement claims made by third parties. As permitted under Delaware law, the Company has entered into indemnification agreements with its directors and certain officers and employees that will require the Company, 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 the Company to provide indemnification under such agreements, and there are no claims that the Company is aware of that could have a material effect on its 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 | 9 Months Ended |
Oct. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue and Performance Obligations | Deferred Contract CostsDeferred contract costs, which primarily consist of deferred sales commissions, were $45.0 million and $42.8 million as of October 31, 2022 and January 31, 2022, respectively. Amortization expense for deferred contract costs was $4.9 million and $3.9 million for the three months ended October 31, 2022 and 2021, respectively. Amortization expense for deferred contract costs was $14.2 million and $10.7 million for the nine months ended October 31, 2022 and 2021, respectively. There was no impairment charge related to the costs capitalized for the periods presented.Deferred Revenue and Performance Obligations The following table presents the changes to the Company’s deferred revenue: Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 (in thousands) Deferred revenue, beginning of period $ 169,534 $ 134,002 $ 170,224 $ 129,972 Billings 104,384 80,608 278,462 215,765 Deferred revenue assumed in the Catalytic acquisition — — 856 — Revenue recognized (94,203) (71,760) (269,827) (202,887) Deferred revenue, end of period $ 179,715 $ 142,850 $ 179,715 $ 142,850 For the three months ended October 31, 2022 and 2021, the majority of revenue recognized was from the deferred revenue balances at the beginning of each quarter. For the nine months ended October 31, 2022 and 2021, approximately half of revenue recognized was from the deferred revenue balance at the beginning of the period. As of October 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 $174.3 million. The Company expects to satisfy the substantial majority of these unsatisfied performance obligations over the next 24 months and the remainder thereafter. The Company applied the optional exemption for subscriptions with terms of less than one year. |
Common Stock and Stockholders'
Common Stock and Stockholders' Equity | 9 Months Ended |
Oct. 31, 2022 | |
Equity [Abstract] | |
Common Stock and Stockholders' Equity | Common Stock and Stockholders’ Equity Equity Incentive Plans The Company has two equity incentive plans: the 2010 Stock Plan (the “2010 Plan”) and the 2019 Equity Incentive Plan (the “2019 Plan”, collectively the “Stock Plans”). Upon completion of the Company’s initial public offering (“IPO”) in April 2019, the Company ceased granting awards under the 2010 Plan, and all shares that remained available for future issuance under the 2010 Plan at that time were transferred to the 2019 Plan. The 2019 Plan superseded and replaced the 2010 Plan. As of October 31, 2022 and January 31, 2022, the Company was authorized to grant up to 28,626,857 shares and 23,343,378 shares of common stock, respectively, under the Stock Plans. The Company currently uses authorized and unissued shares to satisfy stock award exercises and settlement of RSUs and PSUs. As of October 31, 2022 and January 31, 2022, there were 13,340,710 shares and 14,185,048 shares available for future issuance under the Stock Plans, respectively. Shares of common stock reserved for future issuance are as follows: October 31, 2022 Outstanding stock options and unvested RSUs and PSUs 16,970,374 Available for future stock option, RSU, and PSU grants 13,340,710 Available for ESPP 3,185,930 Total common stock reserved at October 31, 2022 33,497,014 Stock Option Activity Stock option activity is as follows: Number of Weighted Weighted Aggregate (in thousands) Outstanding at January 31, 2022 8,375,866 $ 9.28 6.1 years $ 198,828 Granted 24,882 $ 34.22 Exercised (1,513,561) $ 5.77 Canceled (136,356) $ 14.62 Outstanding at October 31, 2022 6,750,831 $ 10.05 5.5 years $ 100,491 Vested as of October 31, 2022 5,956,791 $ 8.49 5.2 years $ 97,979 The Company uses the Black-Scholes option-pricing model to estimate the fair value of stock options on the date of grant. The Company accounts for forfeitures as they occur. The following assumptions were used to calculate the fair value of employee stock option grants made during the periods: Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 Expected dividend yield N/A — % — % — % Expected volatility N/A 46.0% 47.1% 43.8% - 46.5% Expected term (years) N/A 6.1 6.1 6.1 Risk-free interest rate N/A 1.11% 2.50% 1.04% - 1.16% No stock options were granted during the three months ended October 31, 2022. Stock options granted during the three months ended October 31, 2021 had a weighted average grant date fair value of $19.01 per share. The aggregate intrinsic value of stock options exercised during the three months ended October 31, 2022 and 2021 was $6.4 million and $27.3 million, respectively. Stock options granted during the nine months ended October 31, 2022 and 2021 had a weighted average grant date fair value of $16.46 and $18.76 per share, respectively. The aggregate intrinsic value of stock options exercised during the nine months ended October 31, 2022 and 2021 was $37.0 million and $73.4 million, respectively. The intrinsic value for options exercised is the difference between the market value of the stock and the exercise price of the stock option at the date of exercise. As of October 31, 2022, there was approximately $9.7 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 1.8 years. Restricted Stock Units A summary of the Company’s RSU activity and related information is as follows: Number of RSUs Weighted Outstanding at January 31, 2022 6,028,201 $ 34.77 Granted 5,716,516 $ 31.03 Vested (1,310,826) $ 34.09 Forfeited or canceled (1,815,857) $ 33.77 Outstanding at October 31, 2022 8,618,034 $ 32.60 The fair value of RSUs is based on the fair value of the underlying shares on the date of grant. The Company accounts for forfeitures as they occur. As of October 31, 2022, there was $269.0 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. Performance Stock Units On March 8, 2022, the Compensation Committee of the Board certified the results of PagerDuty’s operating plan for the fiscal year ended January 31, 2022. Based on the results, the PSUs granted in April 2021 (“2021 PSU Awards”) were earned at an attainment of 129%. A summary of the Company’s PSU activity and related information is as follows: Number of PSUs Weighted Outstanding at January 31, 2022 117,701 $ 41.17 Granted (1) 767,409 $ 32.64 Vested (40,007) $ 41.17 Forfeited or canceled (42,225) $ 40.66 Performance adjustment for 2021 PSU Awards 34,332 $ 41.17 Outstanding at October 31, 2022 837,210 $ 33.38 (1) This amount represents awards granted at 100% attainment. The Company grants 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. The PSUs vest over a three-year period, subject to continuous service with the Company. The number of shares of the Company’s stock that will vest 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 three and nine months ended October 31, 2022 and 2021, the Company recorded stock-based compensation expense for the number of PSUs considered probable of vesting based on the expected attainment of the performance targets. As of October 31, 2022, total unrecognized stock-based compensation cost related to PSUs was $9.4 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 common stock as of the beginning of the offering period or (2) the fair market value of the Company’s common stock on the purchase date, as defined in the ESPP. During the three months ended October 31, 2022 and 2021, the Company recognized $1.2 million and $0.8 million, respectively, of stock-based compensation expense related to the ESPP. During the nine months ended October 31, 2022 and 2021, the Company recognized $3.4 million and $3.9 million, respectively, of stock-based compensation expense related to the ESPP. During the three months ended October 31, 2022 and 2021, the Company withheld $2.1 million and $2.2 million, respectively, in contributions from employees. During the nine months ended October 31, 2022 and 2021, the Company withheld $7.7 million and $7.2 million, respectively, in contributions from employees. During the three months ended October 31, 2022 and 2021 there were no purchases related to the ESPP. During the nine months ended October 31, 2022, 280,725 shares of common stock were issued under the ESPP at a purchase price of $20.43 per share. During the nine months ended October 31, 2021, 222,474 shares of common stock were issued under the ESPP at a weighted average purchase price of $21.98 per share. Stock-Based Compensation Stock-based compensation expense included in the Company’s condensed consolidated statements of operations is as follows: Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 (in thousands) Cost of revenue $ 1,937 $ 861 $ 4,948 $ 2,560 Research and development 10,824 6,183 30,066 16,230 Sales and marketing 8,004 4,606 22,533 12,961 General and administrative 10,679 6,128 28,931 16,115 Total $ 31,444 $ 17,778 $ 86,478 $ 47,866 |
Net Loss per Share
Net Loss per Share | 9 Months Ended |
Oct. 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 attributable to PagerDuty, Inc.: Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 (in thousands, except per share data) Numerator: Net loss attributable to PagerDuty, Inc. $ (32,542) $ (26,341) $ (103,861) $ (78,560) Denominator: Weighted average shares used in calculating net loss per share, basic and diluted 89,285 85,092 88,200 83,979 Net loss per share, basic and diluted, attributable to PagerDuty, Inc. $ (0.36) $ (0.31) $ (1.18) $ (0.94) Since the Company was in a loss position for the periods presented, basic net loss per share is the same as diluted net loss per share as the inclusion of all potential common stock outstanding would have been anti-dilutive. Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows: As of October 31, 2022 2021 (in thousands) Shares subject to outstanding common stock awards 16,970 15,448 Convertible senior notes 7,173 7,173 Restricted stock issued to acquire key personnel 63 139 Shares issuable pursuant to the 2019 employee stock purchase plan 202 163 Total 24,408 22,923 |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's provision for income taxes for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in such period. The Company's quarterly tax provision, and estimate of its annual effective tax rate, is subject to variation due to several factors, including variability in pre-tax income (or loss), the mix of jurisdictions to which such income (or loss) relates, changes in how the Company does business, and tax law developments. The Company's estimated effective tax rate for the year differs from the U.S. statutory rate of 21% as a result of our U.S. losses for which no benefit will be realized, our foreign operations which are subject to tax rates that differ from those in the U.S., as well as the benefit for non-U.S. income tax credits. |
Geographic Information
Geographic Information | 9 Months Ended |
Oct. 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: Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 (in thousands) United States $ 72,267 $ 54,287 $ 206,127 $ 153,048 International 21,936 17,473 63,700 49,839 Total $ 94,203 $ 71,760 $ 269,827 $ 202,887 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Oct. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsThe Company has evaluated subsequent events through December 2, 2022. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated balance sheet as of January 31, 2022 was derived from the audited consolidated financial statements as of that date but does not include all of the information and notes required by GAAP for complete financial statements. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes thereto as of and for the year ended January 31, 2022, included in the Company’s Annual Report on Form 10-K, filed with the SEC. The condensed consolidated financial statements include the results of the Company, its wholly owned subsidiaries, and subsidiaries in which the Company holds a controlling interest. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, the information contained herein reflects all adjustments necessary for a fair presentation of the Company’s financial position, results of operations and comprehensive loss, statements of stockholders’ equity, and cash flows. The results of operations for the three and nine months ended October 31, 2022 are not necessarily indicative of the results to be expected for the full year ending January 31, 2023 or for any other interim period, or for any future year. The Company’s fiscal year ends on January 31. References to fiscal 2023, for example, refer to the fiscal year ending January 31, 2023. |
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 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, and estimates related to our revenue recognition, such as the assessment of |
Foreign Currency Translations | Foreign Currency Translations The functional currency for the large majority of the Company's foreign operations is the U.S. dollar, although the Company has one subsidiary use the local currency as its functional currency for the three and nine months ended October 31, 2022. When a consolidated entity’s functional currency is the local currency, the Company translates the foreign functional currency financial statements to U.S. dollars using the exchange rates at the balance sheet date for assets and liabilities, the period average exchange rates for revenues and expenses, and the historical exchange rates for equity. |
Concentrations of Risk and Significant Customers | Concentrations of Risk and Significant Customers The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, available-for-sale investments, and accounts receivable. All of the Company’s cash and cash equivalents and investments are invested in money market funds, U.S. Treasury securities, commercial paper, corporate debt securities, or U.S. Government agency securities that management believes to be of high credit quality. |
Segment Information | Segment Information The Company manages its operations and allocates resources as one operating segment. The Company’s chief operating decision maker (“CODM”) is its chief executive officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In March 2022, the FASB issued Accounting Standard Update No. 2022-01 (“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. The Company early adopted ASU 2022-01 as of February 1, 2022 using the prospective method. The adoption of the standard impacted the accounting for the acquisition of Catalytic, Inc. (“Catalytic”) requiring the Company to measure acquired contract assets and liabilities in accordance with ASC 606. The adoption of ASU 2021-08 did not have a material impact on the condensed consolidated financial statements. |
Operating Leases | Operating Leases The Company has entered into various non-cancellable operating leases for its office spaces with lease periods expiring between fiscal 2023 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. |
Redeemable Non-Controlling In_2
Redeemable Non-Controlling Interest (Tables) | 9 Months Ended |
Oct. 31, 2022 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | The following table summarizes the activity in the redeemable non-controlling interest for the period indicated below: Three Months Ended October 31, 2022 Nine Months Ended October 31, 2022 (in thousands) Balance at beginning of period $ 1,811 $ — Investment by redeemable non-controlling interest — 1,908 Net loss attributable to redeemable non-controlling interest (262) (362) Foreign currency translation adjustments 2 5 Balance at end of period $ 1,551 $ 1,551 |
Cash, Cash Equivalents, and I_2
Cash, Cash Equivalents, and Investments (Tables) | 9 Months Ended |
Oct. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Components of Cash and Cash Equivalents | Cash, cash equivalents, and investments consisted of the following: As of October 31, 2022 As of January 31, 2022 (in thousands) Cash and cash equivalents Cash $ 118,604 $ 268,091 Money market funds 141,730 73,194 Commercial paper 1,999 5,500 U.S. Treasury securities — 3,000 Total cash and cash equivalents $ 262,333 $ 349,785 Available-for-sale investments: U.S. Treasury securities $ 50,569 $ 41,105 Commercial paper 31,638 39,483 Corporate debt securities 108,964 112,983 U.S. Government agency securities 5,933 — Total available-for-sale investments $ 197,104 $ 193,571 |
Summary of Components of Available-for-sale Investments | Cash, cash equivalents, and investments consisted of the following: As of October 31, 2022 As of January 31, 2022 (in thousands) Cash and cash equivalents Cash $ 118,604 $ 268,091 Money market funds 141,730 73,194 Commercial paper 1,999 5,500 U.S. Treasury securities — 3,000 Total cash and cash equivalents $ 262,333 $ 349,785 Available-for-sale investments: U.S. Treasury securities $ 50,569 $ 41,105 Commercial paper 31,638 39,483 Corporate debt securities 108,964 112,983 U.S. Government agency securities 5,933 — Total available-for-sale investments $ 197,104 $ 193,571 |
Summary of Carrying Value of Available-for-sale Investments | The following tables summarize the Company’s investments’ adjusted cost, net unrealized losses, and fair value by significant investment category as of October 31, 2022 and January 31, 2022. Gross realized gains or losses from sales of available-for-sale securities were not material for the three and nine months ended October 31, 2022. As of October 31, 2022 Cost Basis Unrealized Loss Recorded Basis (in thousands) Available-for-sale investments: U.S. Treasury securities $ 50,685 $ (116) $ 50,569 Commercial paper 31,918 (280) 31,638 Corporate debt securities 111,124 (2,160) 108,964 U.S. Government agency securities 5,998 (65) 5,933 Total available-for-sale investments $ 199,725 $ (2,621) $ 197,104 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 available-for-sale investments $ 194,240 $ (669) $ 193,571 |
Summary of Contractual Maturities of Available-for-sale Securities | The following tables present the Company’s available-for-sale securities by contractual maturity date as of October 31, 2022 and January 31, 2022: As of October 31, 2022 Cost Basis Recorded Basis (in thousands) Due within one year $ 150,320 $ 148,732 Due between one to five years 49,405 48,372 Total $ 199,725 $ 197,104 As of January 31, 2022 Cost Basis Recorded Basis (in thousands) Due within one year $ 154,692 $ 154,455 Due between one to five years 39,548 39,116 Total $ 194,240 $ 193,571 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 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 October 31, 2022 Level 1 Level 2 Level 3 Total (in thousands) Money market funds $ 141,730 $ — $ — $ 141,730 U.S. Treasury securities — 50,569 — 50,569 Commercial paper 1,999 31,638 — 33,637 Corporate debt securities — 108,964 — 108,964 U.S. Government agency securities — 5,933 — 5,933 Total $ 143,729 $ 197,104 $ — $ 340,833 Included in cash equivalents $ 143,729 Included in investments $ 197,104 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 |
Business Combinations and Asset
Business Combinations and Asset Acquisitions (Tables) | 9 Months Ended |
Oct. 31, 2022 | |
Business Combinations [Abstract] | |
Schedule of Allocation of Purchase Consideration | The following table presents the preliminary fair values of acquired assets and liabilities recorded in the Company’s condensed consolidated balance sheet as of the acquisition date: (in thousands) Cash and cash equivalents $ 2,506 Accounts receivable and other assets 801 Prepaid and other current assets 841 Intangible assets 21,800 Goodwill 46,736 Accounts payable and other liabilities (408) Deferred revenue (856) Other tax liabilities (1,322) Deferred tax liability (1,330) Total purchase consideration $ 68,768 |
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) Developed technology $ 19,200 3 Customer relationships $ 2,600 10 |
Goodwill and Acquired Intangi_2
Goodwill and Acquired Intangible Assets (Tables) | 9 Months Ended |
Oct. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the nine months ended October 31, 2022 are as follows: Goodwill (in thousands) Balance as of January 31, 2022 $ 72,126 Goodwill resulting from business combination 46,736 Balance as of October 31, 2022 $ 118,862 |
Schedule of Other Intangible Assets Subject to Amortization | Acquired intangible assets subject to amortization consist of the following: As of October 31, 2022 Cost Accumulated Amortization Net Weighted Average (in thousands) (in years) Customer relationships $ 24,400 $ (4,709) $ 19,691 8.1 Developed technology 24,800 (6,462) 18,338 2.5 Trademarks 400 (400) — 0.0 Assembled workforce 2,527 (527) 2,000 1.6 Total acquired intangibles, net $ 52,127 $ (12,098) $ 40,029 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 Total acquired intangibles, net $ 27,800 $ (4,667) $ 23,133 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 9 Months Ended |
Oct. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and equipment, net, consisted of the following: As of October 31, 2022 As of January 31, 2022 (in thousands) Leasehold improvements $ 15,599 $ 15,392 Computers and equipment 9,168 7,483 Furniture and fixtures 4,774 4,686 Capitalized internal-use software 9,389 6,136 Gross property and equipment (1) 38,930 33,697 Accumulated depreciation and amortization (20,591) (15,468) Property and equipment, net $ 18,339 $ 18,229 (1) Gross property and equipment includes construction-in-progress for leasehold improvements and capitalized internal-use software of $4.6 million and $6.9 million that had not yet been placed in service as of October 31, 2022 and January 31, 2022, respectively. The costs associated with construction-in-progress are not amortized until the asset is available for its intended use. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Oct. 31, 2022 | |
Leases [Abstract] | |
Summary of Information About Lease on Condensed Consolidated Balance Sheet | The following table presents information about leases on the condensed consolidated balance sheet. As of October 31, 2022 As of January 31, 2021 (in thousands) Assets Lease right-of-use assets $ 15,141 $ 20,227 Liabilities Lease liabilities 6,438 5,637 Lease liabilities, non-current 14,155 20,912 |
Summary of Information About Leases on Condensed Consolidated Statement of Operations and Supplemental Cash Flow Information | The following table presents information about leases on the condensed consolidated statement of operations. Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 (in thousands) Operating lease expense $ 1,371 $ 1,401 $ 4,293 $ 4,173 Short-term lease expense 484 304 1,342 473 Variable lease expense 285 313 957 628 The following table presents supplemental cash flow information about the Company’s leases. Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 (in thousands) Cash paid for amounts included in the measurement of lease liabilities $ 1,601 $ 1,581 $ 4,840 $ 4,724 |
Debt and Financing Arrangemen_2
Debt and Financing Arrangements (Tables) | 9 Months Ended |
Oct. 31, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Net Carrying Amount of Liability and Equity Components of Convertible Notes | The net carrying amount of the Notes as of October 31, 2022 and as of January 31, 2022 was as follows: As of October 31, 2022 As of January 31, 2022 (in thousands) Principal $ 287,500 $ 287,500 Less: unamortized issuance costs (5,055) (6,431) Net carrying amount $ 282,445 $ 281,069 Interest expense recognized related to the Notes is as follows: Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 (in thousands) Contractual interest expense $ 899 $ 898 $ 2,696 $ 2,695 Amortization of debt issuance costs 461 452 1,376 1,350 Total interest expense related to the Notes $ 1,360 $ 1,350 $ 4,072 $ 4,045 |
Deferred Revenue and Performa_2
Deferred Revenue and Performance Obligations (Tables) | 9 Months Ended |
Oct. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Deferred Revenue | The following table presents the changes to the Company’s deferred revenue: Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 (in thousands) Deferred revenue, beginning of period $ 169,534 $ 134,002 $ 170,224 $ 129,972 Billings 104,384 80,608 278,462 215,765 Deferred revenue assumed in the Catalytic acquisition — — 856 — Revenue recognized (94,203) (71,760) (269,827) (202,887) Deferred revenue, end of period $ 179,715 $ 142,850 $ 179,715 $ 142,850 |
Common Stock and Stockholders_2
Common Stock and Stockholders' Equity (Tables) | 9 Months Ended |
Oct. 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: October 31, 2022 Outstanding stock options and unvested RSUs and PSUs 16,970,374 Available for future stock option, RSU, and PSU grants 13,340,710 Available for ESPP 3,185,930 Total common stock reserved at October 31, 2022 33,497,014 |
Schedule of Stock Option Activity | Stock option activity is as follows: Number of Weighted Weighted Aggregate (in thousands) Outstanding at January 31, 2022 8,375,866 $ 9.28 6.1 years $ 198,828 Granted 24,882 $ 34.22 Exercised (1,513,561) $ 5.77 Canceled (136,356) $ 14.62 Outstanding at October 31, 2022 6,750,831 $ 10.05 5.5 years $ 100,491 Vested as of October 31, 2022 5,956,791 $ 8.49 5.2 years $ 97,979 |
Schedule of Assumptions Used to Calculate Fair Value of Employee Stock Option Grants Made | The following assumptions were used to calculate the fair value of employee stock option grants made during the periods: Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 Expected dividend yield N/A — % — % — % Expected volatility N/A 46.0% 47.1% 43.8% - 46.5% Expected term (years) N/A 6.1 6.1 6.1 Risk-free interest rate N/A 1.11% 2.50% 1.04% - 1.16% |
Schedule of Restricted Stock Unit Activity | A summary of the Company’s RSU activity and related information is as follows: Number of RSUs Weighted Outstanding at January 31, 2022 6,028,201 $ 34.77 Granted 5,716,516 $ 31.03 Vested (1,310,826) $ 34.09 Forfeited or canceled (1,815,857) $ 33.77 Outstanding at October 31, 2022 8,618,034 $ 32.60 |
Schedule of Restricted Stock Unit Activity | A summary of the Company’s PSU activity and related information is as follows: Number of PSUs Weighted Outstanding at January 31, 2022 117,701 $ 41.17 Granted (1) 767,409 $ 32.64 Vested (40,007) $ 41.17 Forfeited or canceled (42,225) $ 40.66 Performance adjustment for 2021 PSU Awards 34,332 $ 41.17 Outstanding at October 31, 2022 837,210 $ 33.38 (1) This amount represents awards granted at 100% attainment. |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense included in the Company’s condensed consolidated statements of operations is as follows: Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 (in thousands) Cost of revenue $ 1,937 $ 861 $ 4,948 $ 2,560 Research and development 10,824 6,183 30,066 16,230 Sales and marketing 8,004 4,606 22,533 12,961 General and administrative 10,679 6,128 28,931 16,115 Total $ 31,444 $ 17,778 $ 86,478 $ 47,866 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 9 Months Ended |
Oct. 31, 2022 | |
Earnings Per Share [Abstract] | |
Summary of Calculation of Basic and Diluted Net Loss Per Share | The following table presents the calculation of basic and diluted net loss per share attributable to PagerDuty, Inc.: Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 (in thousands, except per share data) Numerator: Net loss attributable to PagerDuty, Inc. $ (32,542) $ (26,341) $ (103,861) $ (78,560) Denominator: Weighted average shares used in calculating net loss per share, basic and diluted 89,285 85,092 88,200 83,979 Net loss per share, basic and diluted, attributable to PagerDuty, Inc. $ (0.36) $ (0.31) $ (1.18) $ (0.94) |
Schedule of Anti-dilutive Securities That Were Not Included in Diluted Per Share Calculations | Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows: As of October 31, 2022 2021 (in thousands) Shares subject to outstanding common stock awards 16,970 15,448 Convertible senior notes 7,173 7,173 Restricted stock issued to acquire key personnel 63 139 Shares issuable pursuant to the 2019 employee stock purchase plan 202 163 Total 24,408 22,923 |
Geographic Information (Tables)
Geographic Information (Tables) | 9 Months Ended |
Oct. 31, 2022 | |
Segment Reporting [Abstract] | |
Summary of Disaggregation of Revenue By Geographic Location | Revenue by location is determined by the billing address of the customer. The following table sets forth revenue by geographic area: Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 (in thousands) United States $ 72,267 $ 54,287 $ 206,127 $ 153,048 International 21,936 17,473 63,700 49,839 Total $ 94,203 $ 71,760 $ 269,827 $ 202,887 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
May 31, 2022 | Jul. 31, 2022 | Oct. 31, 2022 USD ($) segment | Oct. 31, 2021 USD ($) | |
Accounting Policies [Abstract] | ||||
Number of operating segments | segment | 1 | |||
Related party transaction, receivable | $ 1.6 | $ 2.2 | ||
Related party transaction, revenue | $ 1.1 | |||
Variable Interest Entity, Primary Beneficiary | ||||
Accounting Policies [Abstract] | ||||
Ownership percentage | 51% | 51% | ||
Noncontrolling Interest [Line Items] | ||||
Ownership percentage | 51% | 51% |
Redeemable Non-Controlling In_3
Redeemable Non-Controlling Interest - Narrative (Details) | 1 Months Ended | 3 Months Ended |
May 31, 2022 | Jul. 31, 2022 | |
Variable Interest Entity, Primary Beneficiary | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage | 51% | 51% |
Redeemable Non-Controlling In_4
Redeemable Non-Controlling Interest - Summary of Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Redeemable Non-Controlling Interest [Roll Forward] | ||||
Balance at beginning of period | $ 1,811 | $ 0 | ||
Investment by redeemable non-controlling interest | 0 | 1,908 | ||
Net loss attributable to redeemable non-controlling interest | (262) | $ 0 | (362) | $ 0 |
Foreign currency translation adjustments | 2 | $ 0 | 5 | $ 0 |
Balance at end of period | $ 1,551 | $ 1,551 |
Cash, Cash Equivalents, and I_3
Cash, Cash Equivalents, and Investments - Components of Cash and Cash Equivalents and Investments (Details) - USD ($) $ in Thousands | Oct. 31, 2022 | Jan. 31, 2022 |
Cash and cash equivalents | ||
Cash | $ 118,604 | $ 268,091 |
Money market funds | 141,730 | 73,194 |
Commercial paper | 1,999 | 5,500 |
U.S. Treasury securities | 0 | 3,000 |
Total cash and cash equivalents | 262,333 | 349,785 |
Debt Securities, Available-for-sale [Line Items] | ||
Total available-for-sale investments | 197,104 | 193,571 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total available-for-sale investments | 50,569 | 41,105 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total available-for-sale investments | 31,638 | 39,483 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total available-for-sale investments | 108,964 | 112,983 |
U.S. Government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total available-for-sale investments | $ 5,933 | $ 0 |
Cash, Cash Equivalents, and I_4
Cash, Cash Equivalents, and Investments - Carrying Value of Investments (Details) - USD ($) $ in Thousands | Oct. 31, 2022 | Jan. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Cost Basis | $ 199,725 | $ 194,240 |
Unrealized Loss, Net | (2,621) | (669) |
Recorded Basis | 197,104 | 193,571 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost Basis | 50,685 | 41,147 |
Unrealized Loss, Net | (116) | (42) |
Recorded Basis | 50,569 | 41,105 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost Basis | 31,918 | 39,528 |
Unrealized Loss, Net | (280) | (45) |
Recorded Basis | 31,638 | 39,483 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost Basis | 111,124 | 113,565 |
Unrealized Loss, Net | (2,160) | (582) |
Recorded Basis | 108,964 | $ 112,983 |
U.S. Government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost Basis | 5,998 | |
Unrealized Loss, Net | (65) | |
Recorded Basis | $ 5,933 |
Cash, Cash Equivalents, and I_5
Cash, Cash Equivalents, and Investments - Contractual Maturity (Details) - USD ($) $ in Thousands | Oct. 31, 2022 | Jan. 31, 2022 |
Cost Basis | ||
Due within one year | $ 150,320 | $ 154,692 |
Due between one to five years | 49,405 | 39,548 |
Cost Basis | 199,725 | 194,240 |
Recorded Basis | ||
Due within one year | 148,732 | 154,455 |
Due between one to five years | 48,372 | 39,116 |
Recorded Basis | $ 197,104 | $ 193,571 |
Cash, Cash Equivalents, and I_6
Cash, Cash Equivalents, and Investments - Additional Information (Details) | 9 Months Ended | |
Oct. 31, 2022 USD ($) day security | Jan. 31, 2022 USD ($) security | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Available-for-sale securities in an unrealized loss position | security | 92 | 69 |
Securities in a continuous net loss position for 12 months or longer | 27 | 7 |
Total unrealized loss on available-for-sale securities | $ 1,000,000 | |
Total unrealized loss | $ 700,000 | |
Impairment loss recorded | $ 0 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Oct. 31, 2022 | Jan. 31, 2022 | Jun. 25, 2020 |
Convertible Senior Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Stated interest rate | 1.25% | 1.25% | |
Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money market funds | $ 143,729 | $ 81,694 | |
Included in investments | 197,104 | 193,571 | |
Total | 340,833 | 275,265 | |
Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total | 143,729 | 81,694 | |
Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total | 197,104 | 193,571 | |
Fair value of convertible senior notes | 282,600 | ||
Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total | 0 | 0 | |
U.S. Treasury securities | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Included in investments | 50,569 | 44,105 | |
U.S. Treasury securities | Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Included in investments | 0 | 3,000 | |
U.S. Treasury securities | Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Included in investments | 50,569 | 41,105 | |
U.S. Treasury securities | Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Included in investments | 0 | 0 | |
Commercial paper | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Included in investments | 33,637 | 44,983 | |
Commercial paper | Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Included in investments | 1,999 | 5,500 | |
Commercial paper | Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Included in investments | 31,638 | 39,483 | |
Commercial paper | Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Included in investments | 0 | 0 | |
Corporate debt securities | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Included in investments | 108,964 | 112,983 | |
Corporate debt securities | Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Included in investments | 0 | 0 | |
Corporate debt securities | Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Included in investments | 108,964 | 112,983 | |
Corporate debt securities | Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Included in investments | 0 | 0 | |
U.S. Government agency securities | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Included in investments | 5,933 | ||
U.S. Government agency securities | Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Included in investments | 0 | ||
U.S. Government agency securities | Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Included in investments | 5,933 | ||
U.S. Government agency securities | Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Included in investments | 0 | ||
Money market funds | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money market funds | 141,730 | 73,194 | |
Money market funds | Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money market funds | 141,730 | 73,194 | |
Money market funds | Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money market funds | 0 | 0 | |
Money market funds | Recurring | Level 3 | |||
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) | Mar. 08, 2022 USD ($) founder | Oct. 31, 2022 USD ($) | Jan. 31, 2022 USD ($) |
Business Acquisition [Line Items] | |||
Goodwill | $ 118,862,000 | $ 72,126,000 | |
Cost | 52,127,000 | 27,800,000 | |
Developed technology | |||
Business Acquisition [Line Items] | |||
Cost | 24,800,000 | 5,600,000 | |
Customer relationships | |||
Business Acquisition [Line Items] | |||
Cost | $ 24,400,000 | $ 21,800,000 | |
Catalytic | |||
Business Acquisition [Line Items] | |||
Cash paid for acquisition | $ 68,800,000 | ||
Net deferred tax liability recognized in connection with acquisition | 1,330,000 | ||
Goodwill | 46,736,000 | ||
Catalytic | Developed technology | |||
Business Acquisition [Line Items] | |||
Cost | 19,200,000 | ||
Catalytic | Customer relationships | |||
Business Acquisition [Line Items] | |||
Cost | 2,600,000 | ||
Rundeck, Inc | |||
Business Acquisition [Line Items] | |||
Tax deductible Goodwill | $ 0 | ||
Number of founders | founder | 2 | ||
Cash held back | $ 3,400,000 | ||
Service period (in years) | 2 years |
Business Combinations - Allocat
Business Combinations - Allocation of Purchase Consideration (Details) - USD ($) $ in Thousands | Oct. 31, 2022 | Mar. 08, 2022 | Jan. 31, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 118,862 | $ 72,126 | |
Catalytic | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 2,506 | ||
Accounts receivable and other assets | 801 | ||
Prepaid and other current assets | 841 | ||
Intangible assets | 21,800 | ||
Goodwill | 46,736 | ||
Accounts payable and other liabilities | (408) | ||
Deferred revenue | (856) | ||
Other tax liabilities | (1,322) | ||
Deferred tax liability | (1,330) | ||
Total purchase consideration | $ 68,768 |
Business Combinations - Compone
Business Combinations - Components of Identifiable Intangible Assets Acquired (Details) - USD ($) $ in Thousands | Mar. 08, 2022 | Oct. 31, 2022 | Jan. 31, 2022 |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair Value | $ 52,127 | $ 27,800 | |
Developed technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair Value | 24,800 | 5,600 | |
Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair Value | $ 24,400 | $ 21,800 | |
Catalytic | Developed technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair Value | $ 19,200 | ||
Useful Life | 3 years | ||
Catalytic | Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair Value | $ 2,600 | ||
Useful Life | 10 years |
Goodwill and Acquired Intangi_3
Goodwill and Acquired Intangible Assets - Changes in Carrying Amount of Goodwill (Details) $ in Thousands | 9 Months Ended |
Oct. 31, 2022 USD ($) | |
Goodwill [Roll Forward] | |
Balance as of Beginning of period | $ 72,126 |
Goodwill resulting from business combination | 46,736 |
Balance as of end of period | $ 118,862 |
Goodwill and Acquired Intangi_4
Goodwill and Acquired Intangible Assets - Schedule of Other Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Oct. 31, 2022 | Jan. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 52,127 | $ 27,800 |
Accumulated Amortization | (12,098) | (4,667) |
Net | 40,029 | 23,133 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 24,400 | 21,800 |
Accumulated Amortization | (4,709) | (2,907) |
Net | $ 19,691 | $ 18,893 |
Weighted Average Remaining Useful Life | 8 years 1 month 6 days | 8 years 8 months 12 days |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 24,800 | $ 5,600 |
Accumulated Amortization | (6,462) | (1,493) |
Net | $ 18,338 | $ 4,107 |
Weighted Average Remaining Useful Life | 2 years 6 months | 3 years 8 months 12 days |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 400 | $ 400 |
Accumulated Amortization | (400) | (267) |
Net | $ 0 | $ 133 |
Weighted Average Remaining Useful Life | 0 years | 8 months 12 days |
Assembled workforce | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 2,527 | |
Accumulated Amortization | (527) | |
Net | $ 2,000 | |
Weighted Average Remaining Useful Life | 1 year 7 months 6 days |
Goodwill and Acquired Intangi_5
Goodwill and Acquired Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense related to intangible assets | $ 2.6 | $ 0.9 | $ 7.4 | $ 2.6 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | Jan. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |||||
Gross property and equipment | $ 38,930 | $ 38,930 | $ 33,697 | ||
Accumulated depreciation and amortization | (20,591) | (20,591) | (15,468) | ||
Property and equipment, net | 18,339 | 18,339 | 18,229 | ||
Depreciation and amortization | 1,800 | $ 1,300 | 5,100 | $ 3,400 | |
Leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Gross property and equipment | 15,599 | 15,599 | 15,392 | ||
Computers and equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Gross property and equipment | 9,168 | 9,168 | 7,483 | ||
Furniture and fixtures | |||||
Property, Plant and Equipment [Line Items] | |||||
Gross property and equipment | 4,774 | 4,774 | 4,686 | ||
Capitalized internal-use software | |||||
Property, Plant and Equipment [Line Items] | |||||
Gross property and equipment | 9,389 | 9,389 | 6,136 | ||
Impairment charge | 700 | ||||
Construction-in-progress | |||||
Property, Plant and Equipment [Line Items] | |||||
Gross property and equipment | $ 4,600 | $ 4,600 | $ 6,900 |
Deferred Contract Costs (Detail
Deferred Contract Costs (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | Jan. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |||||
Deferred contract costs | $ 45,000,000 | $ 45,000,000 | $ 42,800,000 | ||
Amortization of deferred contract costs | $ 4,900,000 | $ 3,900,000 | 14,178,000 | $ 10,651,000 | |
Impairment loss in relation to costs capitalized | $ 0 |
Leases - Information About Leas
Leases - Information About Lease on Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Oct. 31, 2022 | Jan. 31, 2022 |
Assets | ||
Lease right-of-use assets | $ 15,141 | $ 20,227 |
Liabilities | ||
Lease liabilities | 6,438 | 5,637 |
Lease liabilities, non-current | $ 14,155 | $ 20,912 |
Leases - Additional Information
Leases - Additional Information (Details) | Oct. 31, 2022 |
Leases [Abstract] | |
Weighted average remaining lease term (in years) | 3 years 10 months 24 days |
Weighted average discount rate | 3.70% |
Leases - Information About Le_2
Leases - Information About Leases on Condensed Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Leases [Abstract] | ||||
Operating lease expense | $ 1,371 | $ 1,401 | $ 4,293 | $ 4,173 |
Short-term lease expense | 484 | 304 | 1,342 | 473 |
Variable lease expense | $ 285 | $ 313 | $ 957 | $ 628 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Leases [Abstract] | ||||
Cash paid for amounts included in the measurement of lease liabilities | $ 1,601 | $ 1,581 | $ 4,840 | $ 4,724 |
Debt and Financing Arrangemen_3
Debt and Financing Arrangements - Additional Information (Details) $ / shares in Units, shares in Millions | Jun. 25, 2020 USD ($) day $ / shares shares | Oct. 31, 2022 USD ($) | Jan. 31, 2022 USD ($) |
Debt Instrument [Line Items] | |||
Conversion rate | 0.0249507 | ||
Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount of debt issued | $ | $ 287,500,000 | ||
Net proceeds from debt offering, after deducting initial purchaser discounts and debt issuance costs paid or payable | $ | $ 278,200,000 | ||
Stated interest rate | 1.25% | 1.25% | |
Initial conversion price (in dollars per share) | $ / shares | $ 40.08 | ||
Event of default, option to accelerate amounts due, minimum percentage of aggregate principal amount of outstanding debt | 25% | ||
Long-term debt | $ | $ 282,445,000 | $ 281,069,000 | |
Issuance costs attributable to company | $ | $ 5,100,000 | ||
Effective interest rate | 1.93% | ||
Net cost incurred to purchase capped calls | $ | $ 35,700,000 | ||
Convertible Senior Notes | Capped Calls | |||
Debt Instrument [Line Items] | |||
Initial strike price (in dollars per share) | $ / shares | $ 40.08 | ||
Cap price (in dollars per share) | $ / shares | $ 61.66 | ||
Number of shares of common stock covered by capped calls (in shares) | shares | 7.2 | ||
Automatic exercise period for capped calls, trading days | 40 | ||
Convertible Senior Notes | Debt Conversion Terms, One | |||
Debt Instrument [Line Items] | |||
Threshold trading days | 20 | ||
Threshold consecutive trading days | 30 | ||
Threshold percentage of stock price trigger | 130% | ||
Convertible Senior Notes | Debt Conversion Terms, Two | |||
Debt Instrument [Line Items] | |||
Threshold trading days | 5 | ||
Threshold consecutive trading days | 10 | ||
Threshold percentage of product of last reported sales price of common stock and conversion rate on each such trading day | 98% | ||
Convertible Senior Notes | On or after July 6, 2023 | |||
Debt Instrument [Line Items] | |||
Threshold trading days | 20 | ||
Threshold consecutive trading days | 30 | ||
Threshold percentage of stock price trigger | 130% | ||
Redemption, threshold trading days immediately preceding maturity date | 41 | ||
Redemption price, percentage of principal amount to be redeemed | 100% | ||
Convertible Senior Notes | Fundamental Change | |||
Debt Instrument [Line Items] | |||
Redemption price, percentage of principal amount to be redeemed | 100% |
Debt and Financing Arrangemen_4
Debt and Financing Arrangements - Net Carrying Amount (Details) - Convertible Senior Notes - USD ($) $ in Thousands | Oct. 31, 2022 | Jan. 31, 2022 |
Liability Component: | ||
Principal | $ 287,500 | $ 287,500 |
Less: unamortized issuance costs | (5,055) | (6,431) |
Net carrying amount | $ 282,445 | $ 281,069 |
Debt and Financing Arrangemen_5
Debt and Financing Arrangements - Interest Expense (Details) - Convertible Senior Notes - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Debt Instrument [Line Items] | ||||
Contractual interest expense | $ 899 | $ 898 | $ 2,696 | $ 2,695 |
Amortization of debt issuance costs | 461 | 452 | 1,376 | 1,350 |
Total interest expense related to the Notes | $ 1,360 | $ 1,350 | $ 4,072 | $ 4,045 |
Deferred Revenue and Performa_3
Deferred Revenue and Performance Obligations - Deferred Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Increase (Decrease) In Contract with Customer, Liability [Roll Forward] | ||||
Deferred revenue, beginning of period | $ 169,534 | $ 134,002 | $ 170,224 | $ 129,972 |
Billings | 104,384 | 80,608 | 278,462 | 215,765 |
Deferred revenue assumed in the Catalytic acquisition | 0 | 0 | 856 | 0 |
Revenue recognized | (94,203) | (71,760) | (269,827) | (202,887) |
Deferred revenue, end of period | $ 179,715 | $ 142,850 | $ 179,715 | $ 142,850 |
Deferred Revenue and Performa_4
Deferred Revenue and Performance Obligations - Additional Information (Details) $ in Millions | Oct. 31, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Future estimated revenue related to performance obligations | $ 174.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-08-01 | |
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 | 3 Months Ended | 9 Months Ended | |||||
Apr. 11, 2019 purchase_period | Oct. 31, 2022 USD ($) $ / shares shares | Oct. 31, 2021 USD ($) $ / shares shares | Oct. 31, 2022 USD ($) equityIncentivePlan $ / shares shares | Oct. 31, 2021 USD ($) $ / shares shares | Mar. 08, 2022 | Jan. 31, 2022 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of equity incentive plans | equityIncentivePlan | 2 | ||||||
Number of shares authorized for grant (in shares) | shares | 28,626,857 | 28,626,857 | 23,343,378 | ||||
Number of shares available for grant (in shares) | shares | 13,340,710 | 13,340,710 | 14,185,048 | ||||
Granted (in shares) | shares | 24,882 | ||||||
Weighted average grant date fair value of stock options (in dollars per share) | $ / shares | $ 19.01 | $ 16.46 | $ 18.76 | ||||
Aggregate intrinsic value of stock options exercised | $ 6,400 | $ 27,300 | $ 37,000 | $ 73,400 | |||
Unrecognized compensation cost related to unvested stock options | 9,700 | 9,700 | |||||
Stock-based compensation expense | $ 31,444 | 17,778 | $ 86,478 | 47,866 | |||
Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance condition (as a percent) | 0% | 0% | |||||
Stock options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | shares | 0 | ||||||
Unrecognized compensation cost related to unvested awards, period for recognition | 1 year 9 months 18 days | ||||||
RSUs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation cost related to unvested RSUs | $ 269,000 | $ 269,000 | |||||
Unrecognized compensation cost related to unvested awards, period for recognition | 2 years 10 months 24 days | ||||||
PSUs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation cost related to unvested RSUs | $ 9,400 | $ 9,400 | |||||
Unrecognized compensation cost related to unvested awards, period for recognition | 1 year 3 months 18 days | ||||||
Vesting period (in years) | 3 years | ||||||
PSUs | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance condition (as a percent) | 200% | 200% | 129% | ||||
ESPP | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares available for grant (in shares) | shares | 3,185,930 | 3,185,930 | |||||
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% | ||||||
Stock-based compensation expense | $ 1,200 | 800 | $ 3,400 | 3,900 | |||
Amount withheld on behalf of employees for future purchase | $ 2,100 | $ 2,200 | $ 7,700 | $ 7,200 | |||
Shares purchased (in shares) | shares | 0 | 0 | 280,725 | 222,474 | |||
Purchase price (in dollars per share) | $ / shares | $ 20.43 | $ 21.98 | $ 20.43 | $ 21.98 |
Common Stock and Stockholders_4
Common Stock and Stockholders' Equity - Shares Available for Issuance (Details) - shares | Oct. 31, 2022 | Jan. 31, 2022 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for grant (in shares) | 13,340,710 | 14,185,048 |
Total common stock reserved at period end (in shares) | 33,497,014 | |
Stock options, RSUs and PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding stock options and unvested RSUs outstanding (in shares) | 16,970,374 | |
Number of shares available for grant (in shares) | 13,340,710 | |
ESPP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for grant (in shares) | 3,185,930 |
Common Stock and Stockholders_5
Common Stock and Stockholders' Equity - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |
Apr. 30, 2022 | Oct. 31, 2022 | Jan. 31, 2022 | |
Number of Shares | |||
Outstanding, beginning balance (in shares) | 8,375,866 | 8,375,866 | |
Granted (in shares) | 24,882 | ||
Exercised (in shares) | (1,513,561) | ||
Canceled (in shares) | (136,356) | ||
Outstanding, ending balance (in shares) | 6,750,831 | ||
Vested (in shares) | 5,956,791 | ||
Weighted Average Exercise Price | |||
Outstanding, beginning balance (in dollars per share) | $ 9.28 | $ 9.28 | |
Granted (in dollars per share) | 34.22 | ||
Exercised (in dollars per share) | 5.77 | ||
Canceled (in dollars per share) | 14.62 | ||
Outstanding, ending balance (in dollars per share) | 10.05 | ||
Vested (in dollars per share) | $ 8.49 | ||
Weighted Average Remaining Contractual Term | |||
Outstanding | 6 years 1 month 6 days | 5 years 6 months | |
Vested | 5 years 2 months 12 days | ||
Aggregate Intrinsic Value | |||
Outstanding | $ 100,491 | $ 198,828 | |
Vested | $ 97,979 |
Common Stock and Stockholders_6
Common Stock and Stockholders' Equity - Assumptions Used to Calculate Fair Value of Employee Stock Option Grants Made (Details) - Employee - Stock options | 3 Months Ended | 9 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0% | 0% | 0% |
Expected volatility | 46% | 47.10% | |
Expected term (years) | 6 years 1 month 6 days | 6 years 1 month 6 days | 6 years 1 month 6 days |
Risk-free interest rate | 1.11% | 2.50% | |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 43.80% | ||
Risk-free interest rate | 1.04% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 46.50% | ||
Risk-free interest rate | 1.16% |
Common Stock and Stockholders_7
Common Stock and Stockholders' Equity - Restricted Stock Units and Performance Stock Units Activity (Details) | 9 Months Ended |
Oct. 31, 2022 $ / shares shares | |
Weighted Average Grant Date Fair Value Per Share | |
Grant attainment percentage (as a percent) | 100% |
RSUs | |
Number of Awards | |
Outstanding, beginning balance (in shares) | shares | 6,028,201 |
Granted (in shares) | shares | 5,716,516 |
Vested (in shares) | shares | (1,310,826) |
Forfeited or canceled (in shares) | shares | (1,815,857) |
Outstanding, ending balance (in shares) | shares | 8,618,034 |
Weighted Average Grant Date Fair Value Per Share | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 34.77 |
Granted (in dollars per share) | $ / shares | 31.03 |
Vested (in dollars per share) | $ / shares | 34.09 |
Forfeited or canceled (in dollars per share) | $ / shares | 33.77 |
Outstanding, ending balance (in dollars per share) | $ / shares | $ 32.60 |
PSUs | |
Number of Awards | |
Outstanding, beginning balance (in shares) | shares | 117,701 |
Granted (in shares) | shares | 767,409 |
Vested (in shares) | shares | (40,007) |
Forfeited or canceled (in shares) | shares | (42,225) |
Performance adjustment for 2021 PSU Awards (in shares) | shares | 34,332 |
Outstanding, ending balance (in shares) | shares | 837,210 |
Weighted Average Grant Date Fair Value Per Share | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 41.17 |
Granted (in dollars per share) | $ / shares | 32.64 |
Vested (in dollars per share) | $ / shares | 41.17 |
Forfeited or canceled (in dollars per share) | $ / shares | 40.66 |
Performance adjustment for 2021 PSU Awards (in dollars per share) | $ / shares | 41.17 |
Outstanding, ending balance (in dollars per share) | $ / shares | $ 33.38 |
Common Stock and Stockholders_8
Common Stock and Stockholders' Equity - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 31,444 | $ 17,778 | $ 86,478 | $ 47,866 |
Cost of revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 1,937 | 861 | 4,948 | 2,560 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 10,824 | 6,183 | 30,066 | 16,230 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 8,004 | 4,606 | 22,533 | 12,961 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 10,679 | $ 6,128 | $ 28,931 | $ 16,115 |
Net Loss per Share - Calculatio
Net Loss per Share - Calculation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Numerator: | ||||
Net loss attributable to PagerDuty, Inc. | $ (32,542) | $ (26,341) | $ (103,861) | $ (78,560) |
Denominator: | ||||
Weighted average shares used in calculating net loss per share, basic (in shares) | 89,285 | 85,092 | 88,200 | 83,979 |
Weighted average shares used in calculating net loss per share, diluted (in shares) | 89,285 | 85,092 | 88,200 | 83,979 |
Net loss per share, basic, attributable to PagerDuty, Inc. (in dollars per share) | $ (0.36) | $ (0.31) | $ (1.18) | $ (0.94) |
Net loss per share, diluted, attributable to PagerDuty, Inc. (in dollars per share) | $ (0.36) | $ (0.31) | $ (1.18) | $ (0.94) |
Net Loss per Share - Anti-dilut
Net Loss per Share - Anti-dilutive Securities (Details) - shares shares in Thousands | 9 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 24,408 | 22,923 |
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) | 16,970 | 15,448 |
Convertible senior notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 7,173 | 7,173 |
Restricted stock issued to acquire key personnel | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 63 | 139 |
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) | 202 | 163 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | Mar. 08, 2022 | |
Income Tax Disclosure [Abstract] | |||||
(Provision for) benefit from income taxes | $ (112) | $ (150) | $ 1,302 | $ (378) | |
Catalytic | |||||
Business Acquisition [Line Items] | |||||
Net deferred tax liability recognized in connection with acquisition | $ 1,330 |
Geographic Information - Revenu
Geographic Information - Revenue by Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 94,203 | $ 71,760 | $ 269,827 | $ 202,887 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 72,267 | 54,287 | 206,127 | 153,048 |
International | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 21,936 | $ 17,473 | $ 63,700 | $ 49,839 |
Geographic Information - Additi
Geographic Information - Additional Information (Details) - Long-Lived Assets - Geographic Concentration Risk | 9 Months Ended | 12 Months Ended |
Oct. 31, 2022 | Jan. 31, 2022 | |
United States | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 89% | 86% |
Canada | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 11% | 14% |
Uncategorized Items - pd-202210
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2020-06 [Member] |