Cover Page
Cover Page - shares | 9 Months Ended | |
Oct. 31, 2023 | Nov. 29, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 31, 2023 | |
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, $0.000005 par value | |
Trading Symbol | PD | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 91,892,322 | |
Entity Central Index Key | 0001568100 | |
Current Fiscal Year End Date | --01-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 31, 2023 | Jan. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 380,307 | $ 274,019 |
Investments | 195,006 | 202,948 |
Accounts receivable, net of allowance for credit losses of $1,285 and $2,014 as of October 31, 2023 and January 31, 2023, respectively | 71,106 | 91,345 |
Deferred contract costs, current | 18,893 | 18,674 |
Prepaid expenses and other current assets | 15,742 | 13,350 |
Total current assets | 681,054 | 600,336 |
Property and equipment, net | 18,746 | 18,390 |
Deferred contract costs, non-current | 24,495 | 27,715 |
Lease right-of-use assets | 10,120 | 13,982 |
Goodwill | 118,862 | 118,862 |
Intangible assets, net | 28,807 | 37,224 |
Other assets | 4,646 | 1,364 |
Total assets | 886,730 | 817,873 |
Current liabilities: | ||
Accounts payable | 6,763 | 7,398 |
Accrued expenses and other current liabilities | 13,323 | 11,804 |
Accrued compensation | 28,833 | 41,834 |
Deferred revenue, current | 192,920 | 204,137 |
Lease liabilities, current | 6,088 | 5,904 |
Total current liabilities | 247,927 | 271,077 |
Convertible senior notes, net | 447,389 | 282,908 |
Deferred revenue, non-current | 3,499 | 4,914 |
Lease liabilities, non-current | 8,391 | 12,704 |
Other liabilities | 4,933 | 4,184 |
Total liabilities | 712,139 | 575,787 |
Commitments and contingencies (Note 10) | ||
Redeemable non-controlling interest (Note 3) | 5,472 | 1,108 |
Stockholders’ equity: | ||
Common stock, $0.000005 par value; 1,000,000,000 shares authorized; 94,219,644 and 91,178,671 shares issued and 91,888,642 and 91,178,671 outstanding as of October 31, 2023 and January 31, 2023, respectively | 0 | 0 |
Additional paid-in capital | 745,114 | 719,816 |
Accumulated other comprehensive loss | (1,712) | (1,592) |
Accumulated deficit | (524,283) | (477,246) |
Treasury stock at cost, 2,331,002 and — shares as of October 31, 2023 and January 31, 2023, respectively | (50,000) | 0 |
Total stockholders’ equity | 169,119 | 240,978 |
Total liabilities, redeemable non-controlling interest, and stockholders’ equity | $ 886,730 | $ 817,873 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Oct. 31, 2023 | Jan. 31, 2023 |
Current assets: | ||
Allowance for doubtful accounts | $ 1,285 | $ 2,014 |
Par value (in USD per share) | $ 0.000005 | $ 0.000005 |
Common stock authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock issued (in shares) | 94,219,644 | 91,178,671 |
Common stock outstanding (in shares) | 91,888,642 | 91,178,671 |
Treasury stock (in shares) | 2,331,002 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 108,720 | $ 94,203 | $ 319,582 | $ 269,827 |
Cost of revenue | 19,705 | 18,007 | 57,474 | 52,090 |
Gross profit | 89,015 | 76,196 | 262,108 | 217,737 |
Operating expenses: | ||||
Research and development | 34,272 | 35,004 | 104,221 | 100,307 |
Sales and marketing | 49,630 | 47,118 | 143,155 | 143,001 |
General and administrative | 25,955 | 26,616 | 77,547 | 77,316 |
Total operating expenses | 109,857 | 108,738 | 324,923 | 320,624 |
Loss from operations | (20,842) | (32,542) | (62,815) | (102,887) |
Interest income | 4,522 | 1,382 | 11,300 | 2,760 |
Interest expense | (1,454) | (1,360) | (4,184) | (4,072) |
Gain on partial extinguishment of convertible senior notes | 3,970 | 0 | 3,970 | 0 |
Other income (expense), net | 673 | (172) | 2,982 | (1,326) |
Loss before (provision) benefit from income taxes | (13,131) | (32,692) | (48,747) | (105,525) |
(Provision) benefit from income taxes | 41 | (112) | 197 | 1,302 |
Net loss | (13,090) | (32,804) | (48,550) | (104,223) |
Net loss attributable to redeemable non-controlling interest | (324) | (262) | (1,513) | (362) |
Net loss attributable to PagerDuty, Inc. | (12,766) | (32,542) | (47,037) | (103,861) |
Adjustment attributable to redeemable non-controlling interest | 2,359 | 0 | 4,088 | 0 |
Net loss attributable to PagerDuty, Inc. common stockholders | $ (15,125) | $ (32,542) | $ (51,125) | $ (103,861) |
Net loss per share, basic, attributable to PagerDuty, Inc. (in dollars per share) | $ (0.16) | $ (0.36) | $ (0.55) | $ (1.18) |
Net loss per share, diluted, attributable to PagerDuty, Inc. (in dollars per share) | $ (0.16) | $ (0.36) | $ (0.55) | $ (1.18) |
Weighted average shares used in calculating net loss per share, basic (in shares) | 93,104 | 89,285 | 92,257 | 88,200 |
Weighted average shares used in calculating net loss per share, diluted (in shares) | 93,104 | 89,285 | 92,257 | 88,200 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (13,090) | $ (32,804) | $ (48,550) | $ (104,223) |
Unrealized gain (loss) on investments | 227 | (1,050) | 295 | (1,952) |
Foreign currency translation adjustments | (151) | (374) | (415) | (515) |
Total comprehensive loss | (13,014) | (34,228) | (48,670) | (106,690) |
Net loss attributable to redeemable non-controlling interest | (324) | (262) | (1,513) | (362) |
Foreign currency translation adjustments, attributable to redeemable non-controlling interest | 6 | 2 | 8 | 5 |
Comprehensive loss attributable to redeemable non-controlling interest | (318) | (260) | (1,505) | (357) |
Comprehensive loss attributable to PagerDuty, Inc. | $ (12,696) | $ (33,968) | $ (47,165) | $ (106,333) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Treasury Stock |
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 | 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) | ||||
Issuance of common stock in connection with the employee stock purchase plan (in shares) | 280,725 | |||||
Issuance of common stock in connection with the Employee Stock Purchase Plan | 5,736 | 5,736 | ||||
Shares issued related to a business combination (in shares) | 62,972 | |||||
Other comprehensive income | (2,467) | (2,467) | ||||
Stock-based compensation | 87,425 | 87,425 | ||||
Adjustment to redeemable non-controlling interest | 0 | |||||
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 | 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 income | (1,424) | (1,424) | ||||
Stock-based compensation | 31,770 | 31,770 | ||||
Adjustment to redeemable non-controlling interest | 0 | |||||
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) | |
Beginning balance (in shares) at Jan. 31, 2023 | 91,178,671 | 91,178,671 | ||||
Beginning balance at Jan. 31, 2023 | $ 240,978 | $ 0 | 719,816 | (1,592) | (477,246) | |
Treasury stock, beginning balance (in shares) at Jan. 31, 2023 | 0 | 0 | ||||
Treasury stock, beginning balance at Jan. 31, 2023 | $ 0 | $ 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of stock options and restricted stock agreements (in shares) | 1,026,320 | |||||
Issuance of common stock upon exercise of stock options | 7,954 | 7,954 | ||||
Vesting of restricted stock units, net of employee payroll taxes (in shares) | 1,688,670 | |||||
Vesting of restricted stock units, net of employee payroll taxes | (25,772) | (25,772) | ||||
Issuance of common stock in connection with the employee stock purchase plan (in shares) | 325,983 | |||||
Issuance of common stock in connection with the Employee Stock Purchase Plan | 6,292 | 6,292 | ||||
Other comprehensive income | (120) | (120) | ||||
Purchases of capped calls related to convertible senior notes | (55,102) | (55,102) | ||||
Common stock repurchased (in shares) | (2,331,002) | |||||
Common stock repurchased | (50,000) | $ (50,000) | ||||
Stock-based compensation | 96,014 | 96,014 | ||||
Adjustment to redeemable non-controlling interest | (4,088) | (4,088) | ||||
Net loss attributable to PagerDuty, Inc. | $ (47,037) | (47,037) | ||||
Ending balance (in shares) at Oct. 31, 2023 | 91,888,642 | 94,219,644 | ||||
Ending balance at Oct. 31, 2023 | $ 169,119 | $ 0 | 745,114 | (1,712) | (524,283) | |
Treasury stock, ending balance (in shares) at Oct. 31, 2023 | 2,331,002 | 2,331,002 | ||||
Treasury stock, ending balance at Oct. 31, 2023 | $ (50,000) | $ (50,000) | ||||
Beginning balance (in shares) at Jul. 31, 2023 | 93,249,291 | |||||
Beginning balance at Jul. 31, 2023 | 265,887 | $ 0 | 779,192 | (1,788) | (511,517) | |
Treasury stock, beginning balance (in shares) at Jul. 31, 2023 | 0 | |||||
Treasury stock, beginning balance at Jul. 31, 2023 | $ 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of stock options and restricted stock agreements (in shares) | 245,778 | |||||
Issuance of common stock upon exercise of stock options | 973 | 973 | ||||
Vesting of restricted stock units, net of employee payroll taxes (in shares) | 724,575 | |||||
Vesting of restricted stock units, net of employee payroll taxes | (9,786) | (9,786) | ||||
Other comprehensive income | 76 | 76 | ||||
Purchases of capped calls related to convertible senior notes | (55,102) | (55,102) | ||||
Common stock repurchased (in shares) | (2,331,002) | |||||
Common stock repurchased | (50,000) | $ (50,000) | ||||
Stock-based compensation | 32,196 | 32,196 | ||||
Adjustment to redeemable non-controlling interest | (2,359) | (2,359) | ||||
Net loss attributable to PagerDuty, Inc. | $ (12,766) | (12,766) | ||||
Ending balance (in shares) at Oct. 31, 2023 | 91,888,642 | 94,219,644 | ||||
Ending balance at Oct. 31, 2023 | $ 169,119 | $ 0 | $ 745,114 | $ (1,712) | $ (524,283) | |
Treasury stock, ending balance (in shares) at Oct. 31, 2023 | 2,331,002 | 2,331,002 | ||||
Treasury stock, ending balance at Oct. 31, 2023 | $ (50,000) | $ (50,000) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Statement of Cash Flows [Abstract] | ||
Net loss attributable to PagerDuty, Inc. common stockholders | $ (51,125) | $ (103,861) |
Net loss and adjustment attributable to redeemable non-controlling interest (Note 3) | 2,575 | (362) |
Net loss | (48,550) | (104,223) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 15,016 | 12,778 |
Amortization of deferred contract costs | 15,286 | 14,178 |
Amortization of debt issuance costs | 1,456 | 1,376 |
Gain on partial extinguishment of convertible senior notes | (3,970) | 0 |
Stock-based compensation | 94,910 | 86,478 |
Non-cash lease expense | 3,425 | 2,913 |
Tax benefit related to release of valuation allowance | 0 | (1,330) |
Other | (1,426) | 1,686 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 18,983 | 3,048 |
Deferred contract costs | (12,285) | (16,323) |
Prepaid expenses and other assets | (2,674) | (2,934) |
Accounts payable | (1,002) | (1,117) |
Accrued expenses and other liabilities | 767 | (1,350) |
Accrued compensation | (13,086) | (624) |
Deferred revenue | (12,547) | 8,635 |
Lease liabilities | (4,484) | (3,783) |
Net cash provided by (used in) operating activities | 49,819 | (592) |
Cash flows from investing activities | ||
Purchases of property and equipment | (1,193) | (3,755) |
Capitalization of internal-use software costs | (3,812) | (2,725) |
Business acquisition, net of cash acquired | 0 | (66,262) |
Asset acquisition | 0 | (1,845) |
Purchases of available-for-sale investments | (151,984) | (155,310) |
Proceeds from maturities of available-for-sale investments | 164,064 | 149,625 |
Purchases of non-marketable equity investments | (200) | 0 |
Net cash provided by (used in) investing activities | 6,875 | (80,272) |
Cash flows from financing activities | ||
Proceeds from issuance of convertible senior notes, net of issuance costs | 391,543 | 0 |
Purchases of capped calls related to convertible senior notes | (55,102) | 0 |
Repurchases of convertible senior notes | (223,471) | 0 |
Investment from redeemable non-controlling interest holder | 1,781 | 1,908 |
Proceeds from employee stock purchase plan | 6,292 | 5,736 |
Proceeds from issuance of common stock upon exercise of stock options | 8,390 | 8,459 |
Employee payroll taxes paid related to net share settlement of restricted stock units | (25,772) | (22,187) |
Repurchase of common stock | (50,000) | 0 |
Net cash provided by (used in) financing activities | 53,661 | (6,084) |
Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash | (451) | (504) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 109,904 | (87,452) |
Cash, cash equivalents, and restricted cash at beginning of period | 274,019 | 349,785 |
Cash, cash equivalents, and restricted cash at end of period | 383,923 | 262,333 |
Cash and cash equivalents | 380,307 | 262,333 |
Restricted Cash and Investments | 3,616 | 0 |
Supplemental cash flow data: | ||
Cash paid for income taxes | 507 | 130 |
Cash paid for interests | 1,797 | 1,797 |
Non-cash investing and financing activities: | ||
Purchase of property and equipment, accrued but not yet paid | 991 | 828 |
Stock-based compensation capitalized in internal use software | 1,105 | 947 |
Bonuses capitalized in internal use software | 111 | 263 |
Issuance costs included in accrued expenses | 965 | 0 |
Receivables for cash in-transit on stock options | $ 0 | $ 269 |
Description of Business and Bas
Description of Business and Basis of Presentation | 9 Months Ended |
Oct. 31, 2023 | |
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, 2023 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, 2023, included in the Annual Report. 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 statement 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, 2023 are not necessarily indicative of the results to be expected for the full year ending January 31, 2024 or for any other interim period, or for any future year. The Company’s fiscal year ends on January 31. References to fiscal 2024, for example, refer to the fiscal year ending January 31, 2024. 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 fair value of acquired assets and assumed liabilities, stock-based compensation, and estimates related to the Company’s revenue recognition, such as the assessment of performance obligations in the Company’s 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 31, 2023 | |
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 equivalents, available-for-sale investments, and accounts receivable. All of the Company’s cash and cash equivalents and investments are invested in money market funds, United States (“U.S.”) Treasury securities, commercial paper, corporate debt securities, or U.S. Government agency securities that management believes to be of high credit quality. The Company’s cash, cash equivalents, and available-for-sale investments are spread across several different financial institutions. No single customer accounted for more than 10% of the total accounts receivable balance as of October 31, 2023 or January 31, 2023. No single customer represented 10% or more of revenue for the three and nine months ended October 31, 2023 or 2022. 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 15, “Geographic Information” for information regarding the Company's long-lived assets and revenue by geography. Related Party Transactions Certain members of the Company’s Board of Directors serve as directors of, or are executive officers of, and in some cases are investors in, companies that are customers or vendors of the Company. The Company billed $3.8 million and $1.6 million to entities associated with related parties during the nine months ended October 31, 2023 and 2022, respectively. Other related party transactions were not material for the three and nine months ended October 31, 2023 and 2022. Significant Accounting Policies There have been no significant changes to the Company’s significant accounting policies as compared to those described in the Annual Report, other than as set forth below. Restricted Cash The Company has classified cash that is not available for use in its operations as restricted cash. Restricted cash consists primarily of collateral for letters of credit related to security deposits for the Company’s office facility lease arrangements. As of October 31, 2023, the Company had restricted cash of $3.6 million, all of which was classified as non-current. The Company had no restricted cash as of January 31, 2023. 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. |
Redeemable Non-Controlling Inte
Redeemable Non-Controlling Interest | 9 Months Ended |
Oct. 31, 2023 | |
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, Nine Months Ended October 31, 2023 2022 2023 2022 (in thousands) Balance at beginning of period $ 3,431 $ 1,811 $ 1,108 $ — Investment by redeemable non-controlling interest — — 1,781 1,908 Net loss attributable to redeemable non-controlling interest (324) (262) (1,513) (362) Adjustment to redeemable non-controlling interest 2,359 — 4,088 — Foreign currency translation adjustments 6 2 8 5 Balance at end of period $ 5,472 $ 1,551 $ 5,472 $ 1,551 |
Cash, Cash Equivalents, and Inv
Cash, Cash Equivalents, and Investments | 9 Months Ended |
Oct. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Cash, Cash Equivalents, and Investments | Cash, Cash Equivalents, and Investments Cash, cash equivalents, and investments consisted of the following: As of October 31, 2023 As of January 31, 2023 (in thousands) Cash and cash equivalents Cash $ 72,035 $ 67,151 Money market funds 297,294 206,868 Commercial paper 8,978 — U.S. Treasury securities 2,000 — Total cash and cash equivalents $ 380,307 $ 274,019 Available-for-sale investments: U.S. Treasury securities $ 50,516 $ 51,387 Commercial paper 12,617 34,798 Corporate debt securities 113,620 108,827 U.S. Government agency securities 18,253 7,936 Total available-for-sale investments $ 195,006 $ 202,948 The following tables summarize the Company’s investments’ adjusted cost, net unrealized losses, and fair value by significant investment category as of October 31, 2023 and January 31, 2023. Gross realized gains or losses from sales of available-for-sale securities were not material for the three and nine months ended October 31, 2023. As of October 31, 2023 Cost Basis Unrealized Loss, Net Estimated Fair Value (in thousands) Available-for-sale investments: U.S. Treasury securities $ 50,519 $ (3) $ 50,516 Commercial paper 12,622 (5) 12,617 Corporate debt securities 114,616 (996) 113,620 U.S. Government agency securities 18,393 (140) 18,253 Total available-for-sale investments $ 196,150 $ (1,144) $ 195,006 As of January 31, 2023 Cost Basis Unrealized Loss, Net Estimated Fair Value (in thousands) Available-for-sale investments: U.S. Treasury securities $ 51,400 $ (13) $ 51,387 Commercial paper 34,926 (128) 34,798 Corporate debt securities 110,063 (1,236) 108,827 U.S. Government agency securities 8,000 (64) 7,936 Total available-for-sale investments $ 204,389 $ (1,441) $ 202,948 The following tables present the Company’s available-for-sale securities by contractual maturity date as of October 31, 2023 and January 31, 2023: As of October 31, 2023 Cost Basis Recorded Basis (in thousands) Due within one year $ 141,549 $ 140,839 Due between one to five years 54,601 54,167 Total $ 196,150 $ 195,006 As of January 31, 2023 Cost Basis Recorded Basis (in thousands) Due within one year $ 139,443 $ 138,625 Due between one to five years 64,946 64,323 Total $ 204,389 $ 202,948 As of October 31, 2023, the Company had 104 securities in an unrealized loss position with an aggregate fair value of $199.1 million, of which $44.5 million were in a continuous unrealized loss position for more than 12 months. As of January 31, 2023, the Company had 81 securities in an unrealized loss position with an aggregate fair value of $174.1 million, of which $39.9 million were in a continuous unrealized loss position for more than 12 months. 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. 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, 2023 | |
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, 2023 Level 1 Level 2 Level 3 Total (in thousands) Money market funds $ 297,294 $ — $ — $ 297,294 U.S. Treasury securities — 52,516 — 52,516 Commercial paper — 21,595 — 21,595 Corporate debt securities — 113,620 — 113,620 U.S. Government agency securities 18,253 — 18,253 Total $ 297,294 $ 205,984 $ — $ 503,278 Included in cash equivalents $ 308,272 Included in investments $ 195,006 As of January 31, 2023 Level 1 Level 2 Level 3 Total (in thousands) Money market funds $ 206,868 $ — $ — $ 206,868 U.S. Treasury securities — 51,387 — 51,387 Commercial paper — 34,798 — 34,798 Corporate debt securities — 108,827 — 108,827 U.S. Government agency securities — 7,936 — 7,936 Total $ 206,868 $ 202,948 $ — $ 409,816 Included in cash equivalents $ 206,868 Included in investments $ 202,948 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, 2023 and January 31, 2023, 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, 2023, the estimated fair value of our outstanding 1.25% Convertible Senior Notes due 2025 (the “2025 Notes”) was approximately $53.5 million and the estimated fair value of our 1.5% Convertible Senior Notes due 2028 (the “2028 Notes” and, together with the 2025 Notes, the “Notes”) was approximately $395.3 million. The fair values were 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. |
Property and Equipment, Net
Property and Equipment, Net | 9 Months Ended |
Oct. 31, 2023 | |
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, 2023 As of January 31, 2023 (in thousands) Leasehold improvements $ 11,445 $ 15,585 Computers and equipment 8,817 9,426 Furniture and fixtures 3,796 4,730 Capitalized internal-use software 15,998 10,971 Gross property and equipment (1) 40,056 40,712 Accumulated depreciation and amortization (21,310) (22,322) Property and equipment, net $ 18,746 $ 18,390 (1) Gross property and equipment includes construction-in-progress for leasehold improvements and capitalized internal-use software of $5.4 million and $6.0 million that had not yet been placed in service as of October 31, 2023 and January 31, 2023, 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 $2.1 million and $1.8 million for the three months ended October 31, 2023 and 2022, respectively. Depreciation and amortization expense was $6.3 million and $5.1 million for the nine months ended October 31, 2023 and 2022, respectively. In the nine months ended October 31, 2023, the Company recorded an impairment charge of $0.4 million related to leasehold improvements abandoned in the period. The impairment charge was recorded in general and administrative expenses on the consolidated statement of operations. 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, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Contract Costs | Deferred Contract Costs Deferred contract costs, which primarily consist of deferred sales commissions, were $43.4 million and $46.4 million as of October 31, 2023 and January 31, 2023, respectively. Amortization expense for deferred contract costs was $5.1 million and $4.9 million for the three months ended October 31, 2023 and 2022, respectively. Amortization expense for deferred contract costs was $15.3 million and $14.2 million for the nine months ended October 31, 2023 and 2022, respectively. There was no impairment charge related to the costs capitalized for the periods presented. The following table presents the changes to the Company’s deferred revenue: Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 (in thousands) Deferred revenue, beginning of period $ 196,605 $ 169,534 $ 209,051 $ 170,224 Billings 108,534 104,384 306,950 278,462 Deferred revenue assumed in the Catalytic acquisition — — — 856 Revenue recognized (108,720) (94,203) (319,582) (269,827) Deferred revenue, end of period $ 196,419 $ 179,715 $ 196,419 $ 179,715 For the three months ended October 31, 2023 and 2022, the majority of revenue recognized was from the deferred revenue balances at the beginning of each quarter. For the nine months ended October 31, 2023 and 2022, approximately half of revenue recognized was from the deferred revenue balance at the beginning of the period. As of October 31, 2023, 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 $206.0 million. The Company expects to satisfy the substantial majority of these unsatisfied performance obligations over the next 24 months and the remainder thereafter. The Company applied the optional exemption for subscriptions with terms of less than one year. |
Leases
Leases | 9 Months Ended |
Oct. 31, 2023 | |
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 2026 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. In the nine months ended October 31, 2023, the Company entered into a sublease of one office location. The sublease has a remaining lease term of less than two years. Sublease income, which is recorded as a reduction of rent expense, was immaterial for the nine months ended October 31, 2023. The following table presents information about leases on the condensed consolidated balance sheet. As of October 31, 2023 As of January 31, 2023 (in thousands) Assets Lease right-of-use assets $ 10,120 $ 13,982 Liabilities Lease liabilities 6,088 5,904 Lease liabilities, non-current 8,391 12,704 As of October 31, 2023, the weighted average remaining lease term was 3.3 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, 2023 2022 2023 2022 (in thousands) Operating lease expense $ 1,089 $ 1,371 $ 3,760 $ 4,293 Short-term lease expense 567 484 1,335 1,342 Variable lease expense 270 285 867 957 The following table presents supplemental cash flow information about the Company’s leases. Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 (in thousands) Cash paid for amounts included in the measurement of lease liabilities $ 1,612 $ 1,601 $ 4,934 $ 4,840 In the nine months ended October 31, 2023, the Company recorded an impairment charge of $0.8 million to the right-of-use asset associated with the subleased office, which is the amount by which the carrying value of the right-of-use asset exceeded its estimated fair value. The estimated fair value was based on the present value of the estimated cash flows that could be generated from subleasing the property for the remaining lease term. The impairment charge was recorded in general and administrative expenses on our condensed consolidated statement of operations. There were no impairment charges recorded in the three months ended October 31, 2023 and 2022 and there were no impairment charges recorded in the nine months ended October 31, 2022. |
Debt and Financing Arrangements
Debt and Financing Arrangements | 9 Months Ended |
Oct. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | Debt and Financing Arrangements 2025 Convertible Senior Notes On June 25, 2020, the Company issued an aggregate principal amount of $287.5 million of 2025 Notes in a private offering pursuant to an Indenture dated June 25, 2020 (the “2025 Indenture”). The 2025 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 2025 Notes will mature on July 1, 2025, unless such notes are converted, redeemed or repurchased earlier. The 2025 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 2025 Indenture. In October 2023, the Company provided written notice to the trustee and the note holders of the 2025 Notes that it had irrevocably elected to settle the principal amount of its convertible senior notes in cash and pay or deliver, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock, at the Company’s election, in respect to the remainder, if any, of the Company’s conversion obligation in excess of the aggregate principal amount of the 2025 Notes being converted. In October 2023, the Company paid $223.5 million to repurchase $230.0 million of aggregate principal amount of the 2025 Notes with a carrying value of $227.5 million, net of unamortized issuance costs of $2.6 million. The Company recorded a gain on partial extinguishment of the 2025 Notes in the three and nine months ended October 31, 2023 of $4.0 million in the condensed consolidated statements of operations. 2028 Convertible Senior Notes In October 2023, the Company issued an aggregate principal amount of $402.5 million 2028 Notes in a private offering pursuant to an Indenture dated October 13, 2023 (the “2028 Indenture” and, together with the 2025 Indenture, the “Indentures”). The total net proceeds from the debt offering, after deducting debt issuance costs of $12.0 million, paid or payable by the Company, were $390.4 million. The 2028 Notes are senior, unsecured obligations of the Company and accrue interest payable semiannually in arrears on April 15 and October 15 of each year, beginning on April 15, 2024, at a rate of 1.50% per year. The 2028 Notes will mature on October 15, 2028, unless such notes are converted, redeemed or repurchased earlier. Upon conversion, the Company will pay cash up to the aggregate principal amount of the 2028 Notes to be converted and pay or deliver, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock, at the Company’s election, in respect to the remainder, if any, of the Company’s conversion obligation in excess of the aggregate principal amount of the 2028 Notes being converted, in the manner and subject to the terms and conditions provided in the 2028 Indenture. Additional Terms of the Notes 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, with respect to the 2025 Notes, or June 15, 2028, with respect to the 2028 Notes, only under the following circumstances: • During any fiscal quarter commencing after the fiscal quarter ended October 31, 2020, with respect to the 2025 Notes, or the fiscal quarter ending January 31, 2024, with respect to the 2028 Notes (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 relevant 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 relevant Indenture) per $1,000 principal amount of 2028 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 relevant 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, with respect to the 2025 Notes, or June 15, 2028, with respect to the 2028 Notes, until the close of business on the second scheduled trading day immediately preceding the relevant maturity date, holders of the Notes may convert all or any portion of their Notes at any time, regardless of the foregoing circumstances. The initial conversion rate for the 2025 Notes is 24.95 shares of common stock per $1,000 principal amount of 2025 Notes, which is equivalent to an initial conversion price of approximately $40.08 per share of common stock. The initial conversion rate for the 2028 Notes is 36.56 shares of common stock per $1,000 principal amount of 2028 Notes, which is equivalent to an initial conversion price of approximately $27.35 per share of common stock. The conversion rate for the Notes is subject to adjustment under certain circumstances in accordance with the terms of the relevant Indenture, but will not be adjusted for accrued and unpaid interest. In addition, following certain corporate events that occur prior to the maturity date, or if the Company delivers a notice of redemption, the Company will, in certain circumstances, increase the conversion rate for a holder who elects to convert its Notes in connection with such a corporate event or convert its notes called (or deemed called) for redemption during the related redemption period (as defined in the relevant Indenture), as the case may be. The Company may not redeem 2025 Notes prior to July 6, 2023 or the 2028 Notes prior to October 20, 2026. The Company may redeem for cash all or any portion of the Notes, at its option, with respect to the 2025 Notes, on a redemption date occurring on or after July 6, 2023 and prior to the 41st scheduled trading day immediately preceding the maturity date of the 2025 Notes, or with respect to the 2028 Notes, on a redemption date occurring on or after October 20, 2026 and prior to the 61st scheduled trading day immediately preceding the maturity date of the 2028 Notes, if the last reported sale price of the common stock has been at least 130% of the relevant 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 2025 Notes or the 2028 Notes. If the Company undergoes a fundamental change (as defined in the relevant 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 Indentures governing the Notes contain 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 2025 Notes or 2028 Notes may declare the entire principal of all such 2025 Notes or 2028 Notes plus accrued and unpaid interest to be immediately due and payable. Accounting for Notes The Company accounts for the Notes each as a single liability in accordance with Accounting Standards Update 2020-06 “Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.” The Notes are classified as long-term liabilities as of October 31, 2023. Issuance costs are being amortized to interest expense over the contractual term of the Notes at an effective interest rate of 2.13% for the 2028 Notes and 1.91% for the 2025 Notes. The net carrying amount of the Notes as of October 31, 2023 and as of January 31, 2023 was as follows: As of October 31, 2023 As of January 31, 2023 (in thousands) 2025 Notes 2028 Notes Total 2025 Notes Principal $ 57,500 $ 402,500 $ 460,000 $ 287,500 Less: unamortized issuance costs (621) (11,990) (12,611) (4,592) Net carrying amount $ 56,879 $ 390,510 $ 447,389 $ 282,908 Interest expense recognized related to the Notes is as follows: Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 (in thousands) Contractual interest expense $ 931 $ 899 $ 2,728 $ 2,696 Amortization of debt issuance costs 523 461 1,456 1,376 Total interest expense related to the Notes $ 1,454 $ 1,360 $ 4,184 $ 4,072 Capped Call Transactions In connection with the offering of the 2025 Notes, the Company entered into privately negotiated capped call transactions (the “2025 Capped Calls”) with certain financial institution counterparties and in connection with the offering of the 2028 Notes, the Company entered into separate privately negotiate capped call transactions (the “2028 Capped Calls” and, together with the 2025 Capped Calls, the “Capped Calls”). The Capped Calls are generally intended to reduce or offset the potential dilution to the common stock upon any conversion of the 2025 Notes or the 2028 Notes, as applicable, with such reduction or offset, as the case may be, subject to a cap based on the cap price of such Capped Calls. For accounting purposes, the Capped Calls are separate transactions, and not part of the terms of the 2025 Notes or the 2028 Notes, as applicable. 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 2025 Capped Calls and the cost of $55.1 million incurred to purchase the 2028 Capped Calls were each recorded as a reduction to additional paid-in capital in the accompanying condensed consolidated balance sheet. The Capped Calls will not be remeasured as long as they continue to meet the conditions for equity classification. The 2025 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 2025 Notes. The 2025 Capped Calls have an initial cap price of $61.66 per share, subject to certain adjustments. The 2025 Capped Calls cover, subject to anti-dilution adjustments, approximately $7.20 million shares of our common stock. The 2025 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. The 2028 Capped Calls each have an initial strike price of approximately $27.35 per share, subject to certain adjustments, which corresponds to the initial conversion price of the 2028 Notes. The 2028 Capped Calls have an initial cap price of $42.90 per share, subject to certain adjustments. The 2028 Capped Calls cover, subject to anti-dilution adjustments, approximately 14.7 million shares of our common stock. The 2028 Capped Calls are subject to automatic exercise over a 60 trading day period commencing on July 20, 2028, subject to earlier termination under certain circumstances. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters From time to time in the normal course of business, the Company may be subject to various claims and other legal matters arising in the ordinary course of business. The Company investigates these claims as they arise and accrues estimates for resolution of legal and other contingencies when losses are probable and estimable. The Company is not currently a party to any material legal proceedings nor is it aware of any pending or threatened litigation that could reasonably be expected to have a material adverse effect on its business, financial condition, results of operations, or cash flows. Warranties and Indemnification The Company has entered into service-level agreements with a portion of its customers defining levels of uptime reliability and performance and permitting those customers to receive credits if the Company fails to meet the defined levels of uptime. To date, the Company has not experienced any significant failures to meet defined levels of uptime reliability and performance as a result of those agreements and, as a result, the Company has not incurred or accrued any material liabilities related to these agreements in the financial statements. In the ordinary course of business, 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, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue and Performance Obligations | Deferred Contract Costs Deferred contract costs, which primarily consist of deferred sales commissions, were $43.4 million and $46.4 million as of October 31, 2023 and January 31, 2023, respectively. Amortization expense for deferred contract costs was $5.1 million and $4.9 million for the three months ended October 31, 2023 and 2022, respectively. Amortization expense for deferred contract costs was $15.3 million and $14.2 million for the nine months ended October 31, 2023 and 2022, respectively. There was no impairment charge related to the costs capitalized for the periods presented. The following table presents the changes to the Company’s deferred revenue: Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 (in thousands) Deferred revenue, beginning of period $ 196,605 $ 169,534 $ 209,051 $ 170,224 Billings 108,534 104,384 306,950 278,462 Deferred revenue assumed in the Catalytic acquisition — — — 856 Revenue recognized (108,720) (94,203) (319,582) (269,827) Deferred revenue, end of period $ 196,419 $ 179,715 $ 196,419 $ 179,715 For the three months ended October 31, 2023 and 2022, the majority of revenue recognized was from the deferred revenue balances at the beginning of each quarter. For the nine months ended October 31, 2023 and 2022, approximately half of revenue recognized was from the deferred revenue balance at the beginning of the period. As of October 31, 2023, 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 $206.0 million. The Company expects to satisfy the substantial majority of these unsatisfied performance obligations over the next 24 months and the remainder thereafter. The Company applied the optional exemption for subscriptions with terms of less than one year. |
Common Stock and Stockholders'
Common Stock and Stockholders' Equity | 9 Months Ended |
Oct. 31, 2023 | |
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, 2023 and January 31, 2023, the Company was authorized to grant up to 31,519,241 shares and 28,881,327 shares of common stock, respectively, under the 2019 Plan. The Company currently uses authorized and unissued shares to satisfy stock award exercises and settlement of Restricted Stock Units (“RSUs”) and Performance Stock Units (“PSUs”). As of October 31, 2023 and January 31, 2023, there were 17,224,509 shares and 13,581,239 shares available for future issuance under the Stock Plans, respectively. Shares of common stock reserved for future issuance are as follows: October 31, 2023 Outstanding stock options and unvested RSUs and PSUs 13,886,605 Available for future stock option, RSU, and PSU grants 17,224,509 Available for Employee Stock Purchase Plan (“ESPP”) 3,557,026 Total common stock reserved at October 31, 2023 34,668,140 Common Stock Repurchase In October 2023, the Company repurchased a total of 2,331,002 shares of the Company’s common stock through open market purchases at an average per share price of $21.45 for a total repurchase price of $50.0 million. The cost of repurchased shares are recorded as Treasury Stock in the condensed consolidated balance sheets. Stock Option Activity Stock option activity is as follows: Number of Weighted Weighted Aggregate (in thousands) Outstanding at January 31, 2023 6,150,981 $ 10.61 5.3 years $ 117,986 Granted — $ — Exercised (1,026,320) $ 7.75 Canceled (71,995) $ 33.51 Outstanding at October 31, 2023 5,052,666 $ 10.86 4.7 years $ 52,696 Vested as of October 31, 2023 4,843,446 $ 10.24 4.6 years $ 52,052 No stock options were granted during the three and nine months ended October 31, 2023. The aggregate intrinsic value of stock options exercised during the three months ended October 31, 2023 and 2022 was $4.9 million and $6.4 million, respectively. The aggregate intrinsic value of stock options exercised during the nine months ended October 31, 2023 and 2022 was $20.9 million and $37.0 million, respectively. The intrinsic value for options exercised is the difference between the market value of the stock and the exercise price of the stock option at the date of exercise. As of October 31, 2023, there was approximately $2.7 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 1.3 years. Restricted Stock Units A summary of the Company’s RSU activity and related information is as follows: Number of RSUs Weighted Outstanding at January 31, 2023 8,012,482 $ 32.55 Granted 4,008,591 $ 31.52 Vested (1,671,952) $ 32.51 Forfeited or canceled (2,599,165) $ 33.23 Outstanding at October 31, 2023 7,749,956 $ 31.80 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, 2023, there was $234.1 million of unrecognized stock-based compensation expense related to unvested RSUs, which is expected to be recognized over a weighted average period of 2.4 years based on vesting under the award service conditions. Performance and Market Stock Units 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 market and/or performance conditions at the end of the stated performance period. In April 2023, the Company granted shares of PSUs to certain employees of the Company, which are to vest based on the level of achievement of a Company target related to PagerDuty’s operating plan and the relative growth of the per share price of the Company’s common stock as compared to the S&P Software & Services Select Index over the one-year performance period. The PSUs vest over a three During the three months ended April 30, 2023, the compensation committee of the Board certified the results of PagerDuty’s operating plan for the fiscal year ended January 31, 2023. Based on the results, the PSUs granted in April 2022 (“2022 PSU Awards”) were cancelled as the target was not met. A summary of the Company’s PSU activity and related information is as follows: Number of PSUs Weighted Outstanding at January 31, 2023 825,058 $ 33.27 Granted (1) 594,290 $ 34.98 Vested (16,718) $ 41.17 Forfeited or canceled (152,606) $ 35.71 Performance adjustment for 2022 PSU Awards (698,983) $ 29.22 Outstanding at October 31, 2023 551,041 $ 35.18 (1) This amount represents awards granted at 100% attainment. As of October 31, 2023, total unrecognized stock-based compensation cost related to PSUs was $6.9 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 The ESPP allows eligible employees to purchase shares of the Company’s common stock through payroll deductions over 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, 2023 and 2022, the Company recognized $1.3 million and $1.2 million, respectively, of stock-based compensation expense related to the ESPP. During the nine months ended October 31, 2023 and 2022, the Company recognized $4.7 million and $3.4 million, respectively, of stock-based compensation expense related to the ESPP. During the three months ended October 31, 2023 and 2022, the Company withheld $2.0 million and $2.1 million, respectively, in contributions from employees. During the nine months ended October 31, 2023 and 2022, the Company withheld $7.8 million and $7.7 million, respectively, in contributions from employees. During the three and nine months ended October 31, 2023, 325,983 shares of common stock were issued under the ESPP at a weighted average purchase price of $19.30 per share. During the three and nine months ended October 31, 2022, 280,725 shares of common stock were issued under the ESPP at a weighted average purchase price of $20.43 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, 2023 2022 2023 2022 (in thousands) Cost of revenue $ 1,820 $ 1,937 $ 5,860 $ 4,948 Research and development 11,128 10,824 34,002 30,066 Sales and marketing 8,094 8,004 22,362 22,533 General and administrative 10,786 10,679 32,686 28,931 Total $ 31,828 $ 31,444 $ 94,910 $ 86,478 |
Net Loss per Share
Net Loss per Share | 9 Months Ended |
Oct. 31, 2023 | |
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. common stockholders: Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 (in thousands, except per share data) Numerator: Net loss attributable to PagerDuty, Inc. common stockholders $ (15,125) $ (32,542) $ (51,125) $ (103,861) Denominator: Weighted average shares used in calculating net income (loss) per share, basic and diluted 93,104 89,285 92,257 88,200 Net loss per share, basic and diluted, attributable to PagerDuty, Inc. $ (0.16) $ (0.36) $ (0.55) $ (1.18) 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, 2023 2022 (in thousands) Shares subject to outstanding common stock awards 13,354 16,970 Restricted stock issued to acquire key personnel 44 63 Shares issuable pursuant to the ESPP 188 202 Additionally, as of October 31, 2022, using the conversion rate of 24.9507 shares of common stock per $1,000 principal amount of notes, the potentially dilutive shares that were not included in the diluted per share calculations related to the 2025 Notes was 7,173 million. In October 2023, the Company provided written notice to the trustee and the note holders of the 2025 Notes that it had irrevocably elected to settle the principal amount of its convertible senior notes in cash and pay or deliver, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock, at the Company’s election, in respect to the remainder, if any, of the Company’s conversion obligation in excess of the aggregate principal amount of the 2025 Notes being converted. As described in Note 9, “Debt and Financing Arrangements,” upon conversion of the 2028 Notes, the Company will pay cash up to the aggregate principal amount of the 2028 Notes to be converted and pay or deliver, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock, at the Company’s election, in respect to the remainder, if any, of the Company’s conversion obligation in excess of the aggregate principal amount of the 2028 Notes being converted. As of October 31, 2023, the conversion options of the Notes were out of money and as a result, there were no potentially dilutive shares related to the conversion of the Notes. |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's provision for income taxes for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in such period. The Company's quarterly tax provision, and estimate of its annual effective tax rate, is subject to variation due to several factors, including variability in pre-tax income (or loss), the mix of jurisdictions to which such income (or loss) relates, changes in how the Company does business, and tax law developments. The Company's estimated effective tax rate for the year differs from the U.S. statutory rate of 21% as a result of our U.S. losses for which no benefit will be realized, our foreign operations which are subject to tax rates that differ from those in the U.S., as well as the benefit for non-U.S. income tax credits. The Company recorded an immaterial income tax benefit for the three months ended October 31, 2023 and an income tax expense of $0.1 million for the three months ended October 31, 2022, respectively. The Company recorded an income tax benefit of $0.2 million and $1.3 million for the nine months ended October 31, 2023 and 2022, respectively. The income tax benefit for the nine months ended October 31, 2022 was primarily due to the deferred tax benefit of $1.3 million associated with the Company’s acquisition in the prior period. |
Geographic Information
Geographic Information | 9 Months Ended |
Oct. 31, 2023 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information Revenue by location is generally 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, 2023 2022 2023 2022 (in thousands) United States $ 79,487 $ 72,267 $ 232,576 $ 206,127 International 29,233 21,936 87,006 63,700 Total $ 108,720 $ 94,203 $ 319,582 $ 269,827 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Oct. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On November 15, 2023, the Company acquired all of the shares outstanding of Jeli, Inc. (“Jeli”) in a 100% cash deal for an approximate purchase price of $27 million. Jeli with PagerDuty will help customers turn incidents into opportunities by applying learnings to reduce the impact of future incidents. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Pay vs Performance Disclosure | ||||
Net loss attributable to PagerDuty, Inc. | $ (12,766) | $ (32,542) | $ (47,037) | $ (103,861) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 9 Months Ended |
Oct. 31, 2023 | Oct. 31, 2023 | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | ||
Shelley Webb [Member] | ||
Trading Arrangements, by Individual | ||
Arrangement Duration | 466 days | |
William E. Losch [Member] | ||
Trading Arrangements, by Individual | ||
Arrangement Duration | 382 days |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 31, 2023 | |
Accounting Policies [Abstract] | |
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. |
Fiscal Period | The Company’s fiscal year ends on January 31. References to fiscal 2024, for example, refer to the fiscal year ending January 31, 2024. |
Consolidation | The condensed consolidated balance sheet as of January 31, 2023 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, 2023, included in the Annual Report. 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. |
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 fair value of acquired assets and assumed liabilities, stock-based compensation, and estimates related to the Company’s revenue recognition, such as the assessment of performance obligations in the Company’s 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. |
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 equivalents, available-for-sale investments, and accounts receivable. All of the Company’s cash and cash equivalents and investments are invested in money market funds, United States (“U.S.”) Treasury securities, commercial paper, corporate debt securities, or U.S. Government agency securities that management believes to be of high credit quality. The Company’s cash, cash equivalents, and available-for-sale investments are spread across several different financial institutions. |
Segment Information | Segment Information |
Restricted Cash | Restricted Cash |
Redeemable Non-Controlling Interest | 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. |
Operating Leases | Operating Leases The Company has entered into various non-cancellable operating leases for its office spaces with lease periods expiring between fiscal 2026 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. |
Redeemable Non-Controlling In_2
Redeemable Non-Controlling Interest (Tables) | 9 Months Ended |
Oct. 31, 2023 | |
Noncontrolling Interest [Abstract] | |
Summary of 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, Nine Months Ended October 31, 2023 2022 2023 2022 (in thousands) Balance at beginning of period $ 3,431 $ 1,811 $ 1,108 $ — Investment by redeemable non-controlling interest — — 1,781 1,908 Net loss attributable to redeemable non-controlling interest (324) (262) (1,513) (362) Adjustment to redeemable non-controlling interest 2,359 — 4,088 — Foreign currency translation adjustments 6 2 8 5 Balance at end of period $ 5,472 $ 1,551 $ 5,472 $ 1,551 |
Cash, Cash Equivalents, and I_2
Cash, Cash Equivalents, and Investments (Tables) | 9 Months Ended |
Oct. 31, 2023 | |
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, 2023 As of January 31, 2023 (in thousands) Cash and cash equivalents Cash $ 72,035 $ 67,151 Money market funds 297,294 206,868 Commercial paper 8,978 — U.S. Treasury securities 2,000 — Total cash and cash equivalents $ 380,307 $ 274,019 Available-for-sale investments: U.S. Treasury securities $ 50,516 $ 51,387 Commercial paper 12,617 34,798 Corporate debt securities 113,620 108,827 U.S. Government agency securities 18,253 7,936 Total available-for-sale investments $ 195,006 $ 202,948 |
Summary of Components of Available-for-sale Investments | Cash, cash equivalents, and investments consisted of the following: As of October 31, 2023 As of January 31, 2023 (in thousands) Cash and cash equivalents Cash $ 72,035 $ 67,151 Money market funds 297,294 206,868 Commercial paper 8,978 — U.S. Treasury securities 2,000 — Total cash and cash equivalents $ 380,307 $ 274,019 Available-for-sale investments: U.S. Treasury securities $ 50,516 $ 51,387 Commercial paper 12,617 34,798 Corporate debt securities 113,620 108,827 U.S. Government agency securities 18,253 7,936 Total available-for-sale investments $ 195,006 $ 202,948 |
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, 2023 and January 31, 2023. Gross realized gains or losses from sales of available-for-sale securities were not material for the three and nine months ended October 31, 2023. As of October 31, 2023 Cost Basis Unrealized Loss, Net Estimated Fair Value (in thousands) Available-for-sale investments: U.S. Treasury securities $ 50,519 $ (3) $ 50,516 Commercial paper 12,622 (5) 12,617 Corporate debt securities 114,616 (996) 113,620 U.S. Government agency securities 18,393 (140) 18,253 Total available-for-sale investments $ 196,150 $ (1,144) $ 195,006 As of January 31, 2023 Cost Basis Unrealized Loss, Net Estimated Fair Value (in thousands) Available-for-sale investments: U.S. Treasury securities $ 51,400 $ (13) $ 51,387 Commercial paper 34,926 (128) 34,798 Corporate debt securities 110,063 (1,236) 108,827 U.S. Government agency securities 8,000 (64) 7,936 Total available-for-sale investments $ 204,389 $ (1,441) $ 202,948 |
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, 2023 and January 31, 2023: As of October 31, 2023 Cost Basis Recorded Basis (in thousands) Due within one year $ 141,549 $ 140,839 Due between one to five years 54,601 54,167 Total $ 196,150 $ 195,006 As of January 31, 2023 Cost Basis Recorded Basis (in thousands) Due within one year $ 139,443 $ 138,625 Due between one to five years 64,946 64,323 Total $ 204,389 $ 202,948 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 31, 2023 | |
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, 2023 Level 1 Level 2 Level 3 Total (in thousands) Money market funds $ 297,294 $ — $ — $ 297,294 U.S. Treasury securities — 52,516 — 52,516 Commercial paper — 21,595 — 21,595 Corporate debt securities — 113,620 — 113,620 U.S. Government agency securities 18,253 — 18,253 Total $ 297,294 $ 205,984 $ — $ 503,278 Included in cash equivalents $ 308,272 Included in investments $ 195,006 As of January 31, 2023 Level 1 Level 2 Level 3 Total (in thousands) Money market funds $ 206,868 $ — $ — $ 206,868 U.S. Treasury securities — 51,387 — 51,387 Commercial paper — 34,798 — 34,798 Corporate debt securities — 108,827 — 108,827 U.S. Government agency securities — 7,936 — 7,936 Total $ 206,868 $ 202,948 $ — $ 409,816 Included in cash equivalents $ 206,868 Included in investments $ 202,948 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 9 Months Ended |
Oct. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment, Net | Property and equipment, net, consisted of the following: As of October 31, 2023 As of January 31, 2023 (in thousands) Leasehold improvements $ 11,445 $ 15,585 Computers and equipment 8,817 9,426 Furniture and fixtures 3,796 4,730 Capitalized internal-use software 15,998 10,971 Gross property and equipment (1) 40,056 40,712 Accumulated depreciation and amortization (21,310) (22,322) Property and equipment, net $ 18,746 $ 18,390 (1) Gross property and equipment includes construction-in-progress for leasehold improvements and capitalized internal-use software of $5.4 million and $6.0 million that had not yet been placed in service as of October 31, 2023 and January 31, 2023, 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, 2023 | |
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, 2023 As of January 31, 2023 (in thousands) Assets Lease right-of-use assets $ 10,120 $ 13,982 Liabilities Lease liabilities 6,088 5,904 Lease liabilities, non-current 8,391 12,704 |
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, 2023 2022 2023 2022 (in thousands) Operating lease expense $ 1,089 $ 1,371 $ 3,760 $ 4,293 Short-term lease expense 567 484 1,335 1,342 Variable lease expense 270 285 867 957 The following table presents supplemental cash flow information about the Company’s leases. Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 (in thousands) Cash paid for amounts included in the measurement of lease liabilities $ 1,612 $ 1,601 $ 4,934 $ 4,840 |
Debt and Financing Arrangemen_2
Debt and Financing Arrangements (Tables) | 9 Months Ended |
Oct. 31, 2023 | |
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, 2023 and as of January 31, 2023 was as follows: As of October 31, 2023 As of January 31, 2023 (in thousands) 2025 Notes 2028 Notes Total 2025 Notes Principal $ 57,500 $ 402,500 $ 460,000 $ 287,500 Less: unamortized issuance costs (621) (11,990) (12,611) (4,592) Net carrying amount $ 56,879 $ 390,510 $ 447,389 $ 282,908 Interest expense recognized related to the Notes is as follows: Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 (in thousands) Contractual interest expense $ 931 $ 899 $ 2,728 $ 2,696 Amortization of debt issuance costs 523 461 1,456 1,376 Total interest expense related to the Notes $ 1,454 $ 1,360 $ 4,184 $ 4,072 |
Deferred Revenue and Performa_2
Deferred Revenue and Performance Obligations (Tables) | 9 Months Ended |
Oct. 31, 2023 | |
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, 2023 2022 2023 2022 (in thousands) Deferred revenue, beginning of period $ 196,605 $ 169,534 $ 209,051 $ 170,224 Billings 108,534 104,384 306,950 278,462 Deferred revenue assumed in the Catalytic acquisition — — — 856 Revenue recognized (108,720) (94,203) (319,582) (269,827) Deferred revenue, end of period $ 196,419 $ 179,715 $ 196,419 $ 179,715 |
Common Stock and Stockholders_2
Common Stock and Stockholders' Equity (Tables) | 9 Months Ended |
Oct. 31, 2023 | |
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, 2023 Outstanding stock options and unvested RSUs and PSUs 13,886,605 Available for future stock option, RSU, and PSU grants 17,224,509 Available for Employee Stock Purchase Plan (“ESPP”) 3,557,026 Total common stock reserved at October 31, 2023 34,668,140 |
Schedule of Stock Option Activity | Stock option activity is as follows: Number of Weighted Weighted Aggregate (in thousands) Outstanding at January 31, 2023 6,150,981 $ 10.61 5.3 years $ 117,986 Granted — $ — Exercised (1,026,320) $ 7.75 Canceled (71,995) $ 33.51 Outstanding at October 31, 2023 5,052,666 $ 10.86 4.7 years $ 52,696 Vested as of October 31, 2023 4,843,446 $ 10.24 4.6 years $ 52,052 |
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, 2023 8,012,482 $ 32.55 Granted 4,008,591 $ 31.52 Vested (1,671,952) $ 32.51 Forfeited or canceled (2,599,165) $ 33.23 Outstanding at October 31, 2023 7,749,956 $ 31.80 |
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, 2023 825,058 $ 33.27 Granted (1) 594,290 $ 34.98 Vested (16,718) $ 41.17 Forfeited or canceled (152,606) $ 35.71 Performance adjustment for 2022 PSU Awards (698,983) $ 29.22 Outstanding at October 31, 2023 551,041 $ 35.18 (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, 2023 2022 2023 2022 (in thousands) Cost of revenue $ 1,820 $ 1,937 $ 5,860 $ 4,948 Research and development 11,128 10,824 34,002 30,066 Sales and marketing 8,094 8,004 22,362 22,533 General and administrative 10,786 10,679 32,686 28,931 Total $ 31,828 $ 31,444 $ 94,910 $ 86,478 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 9 Months Ended |
Oct. 31, 2023 | |
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. common stockholders: Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 (in thousands, except per share data) Numerator: Net loss attributable to PagerDuty, Inc. common stockholders $ (15,125) $ (32,542) $ (51,125) $ (103,861) Denominator: Weighted average shares used in calculating net income (loss) per share, basic and diluted 93,104 89,285 92,257 88,200 Net loss per share, basic and diluted, attributable to PagerDuty, Inc. $ (0.16) $ (0.36) $ (0.55) $ (1.18) |
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, 2023 2022 (in thousands) Shares subject to outstanding common stock awards 13,354 16,970 Restricted stock issued to acquire key personnel 44 63 Shares issuable pursuant to the ESPP 188 202 |
Geographic Information (Tables)
Geographic Information (Tables) | 9 Months Ended |
Oct. 31, 2023 | |
Segment Reporting [Abstract] | |
Summary of Disaggregation of Revenue By Geographic Location | Revenue by location is generally 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, 2023 2022 2023 2022 (in thousands) United States $ 79,487 $ 72,267 $ 232,576 $ 206,127 International 29,233 21,936 87,006 63,700 Total $ 108,720 $ 94,203 $ 319,582 $ 269,827 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2023 USD ($) | Oct. 31, 2022 USD ($) | Oct. 31, 2023 USD ($) segment | Oct. 31, 2022 USD ($) | Jan. 31, 2023 USD ($) | |
Accounting Policies [Abstract] | |||||
Number of operating segments | segment | 1 | ||||
Related party transaction, receivable | $ 3,800 | $ 1,600 | |||
Restricted cash | $ 3,600 | 3,600 | $ 0 | ||
Adjustment to redeemable non-controlling interest | $ 2,359 | $ 0 | $ 4,088 | $ 0 |
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 (as a percent) | 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, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Redeemable Non-Controlling Interest [Roll Forward] | ||||
Balance at beginning of period | $ 3,431 | $ 1,811 | $ 1,108 | $ 0 |
Investment by redeemable non-controlling interest | 0 | 0 | 1,781 | 1,908 |
Net loss attributable to redeemable non-controlling interest | (324) | (262) | (1,513) | (362) |
Adjustment to redeemable non-controlling interest | 2,359 | 0 | 4,088 | 0 |
Foreign currency translation adjustments | 6 | 2 | 8 | 5 |
Balance at end of period | $ 5,472 | $ 1,551 | $ 5,472 | $ 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, 2023 | Jan. 31, 2023 | Oct. 31, 2022 |
Cash and cash equivalents | |||
Cash | $ 72,035 | $ 67,151 | |
Money market funds | 297,294 | 206,868 | |
Commercial paper | 8,978 | 0 | |
U.S. Treasury securities | 2,000 | 0 | |
Total cash and cash equivalents | 380,307 | 274,019 | $ 262,333 |
Debt Securities, Available-for-sale [Line Items] | |||
Total available-for-sale investments | 195,006 | 202,948 | |
U.S. Treasury securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total available-for-sale investments | 50,516 | 51,387 | |
Commercial paper | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total available-for-sale investments | 12,617 | 34,798 | |
Corporate debt securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total available-for-sale investments | 113,620 | 108,827 | |
U.S. Government agency securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total available-for-sale investments | $ 18,253 | $ 7,936 |
Cash, Cash Equivalents, and I_4
Cash, Cash Equivalents, and Investments - Carrying Value of Investments (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Jan. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Cost Basis | $ 196,150 | $ 204,389 |
Unrealized Loss, Net | (1,144) | (1,441) |
Estimated Fair Value | 195,006 | 202,948 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost Basis | 50,519 | 51,400 |
Unrealized Loss, Net | (3) | (13) |
Estimated Fair Value | 50,516 | 51,387 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost Basis | 12,622 | 34,926 |
Unrealized Loss, Net | (5) | (128) |
Estimated Fair Value | 12,617 | 34,798 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost Basis | 114,616 | 110,063 |
Unrealized Loss, Net | (996) | (1,236) |
Estimated Fair Value | 113,620 | 108,827 |
U.S. Government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost Basis | 18,393 | 8,000 |
Unrealized Loss, Net | (140) | (64) |
Estimated Fair Value | $ 18,253 | $ 7,936 |
Cash, Cash Equivalents, and I_5
Cash, Cash Equivalents, and Investments - Contractual Maturity (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Jan. 31, 2023 |
Cost Basis | ||
Due within one year | $ 141,549 | $ 139,443 |
Due between one to five years | 54,601 | 64,946 |
Cost Basis | 196,150 | 204,389 |
Recorded Basis | ||
Due within one year | 140,839 | 138,625 |
Due between one to five years | 54,167 | 64,323 |
Recorded Basis | $ 195,006 | $ 202,948 |
Cash, Cash Equivalents, and I_6
Cash, Cash Equivalents, and Investments - Additional Information (Details) $ in Millions | Oct. 31, 2023 USD ($) security | Jan. 31, 2023 USD ($) security |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Available-for-sale securities in an unrealized loss position | security | 104 | 81 |
Securities in unrealized loss position | $ 199.1 | $ 174.1 |
Securities in continuous unrealized loss position for more than 12 months | $ 44.5 | $ 39.9 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Oct. 13, 2023 | Jan. 31, 2023 | Jun. 25, 2020 |
Convertible Senior Notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Stated interest rate | 1.50% | 1.25% | ||
Convertible Senior Notes | 2025 Notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Stated interest rate | 1.25% | |||
Convertible Senior Notes | 2028 Notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Stated interest rate | 1.50% | |||
Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Money market funds | $ 308,272 | $ 206,868 | ||
Included in investments | 195,006 | 202,948 | ||
Total | 503,278 | 409,816 | ||
Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total | 297,294 | 206,868 | ||
Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total | 205,984 | 202,948 | ||
Recurring | Level 2 | 2025 Notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of convertible senior notes | 53,500 | |||
Recurring | Level 2 | 2028 Notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of convertible senior notes | 395,300 | |||
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 | 52,516 | 51,387 | ||
U.S. Treasury securities | Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Included in investments | 0 | 0 | ||
U.S. Treasury securities | Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Included in investments | 52,516 | 51,387 | ||
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 | 21,595 | 34,798 | ||
Commercial paper | Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Included in investments | 0 | 0 | ||
Commercial paper | Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Included in investments | 21,595 | 34,798 | ||
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 | 113,620 | 108,827 | ||
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 | 113,620 | 108,827 | ||
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 | 18,253 | 7,936 | ||
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 | 18,253 | 7,936 | ||
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 | 0 | ||
Money market funds | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Money market funds | 297,294 | 206,868 | ||
Money market funds | Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Money market funds | 297,294 | 206,868 | ||
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 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | Jan. 31, 2023 | |
Property, Plant and Equipment [Line Items] | |||||
Gross property and equipment | $ 40,056 | $ 40,056 | $ 40,712 | ||
Accumulated depreciation and amortization | (21,310) | (21,310) | (22,322) | ||
Property and equipment, net | 18,746 | 18,746 | 18,390 | ||
Depreciation and amortization | 2,100 | $ 1,800 | 6,300 | $ 5,100 | |
Impairment of leasehold improvements | 400 | 400 | |||
Asset impairment charges | $ 700 | ||||
Leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Gross property and equipment | 11,445 | 11,445 | 15,585 | ||
Computers and equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Gross property and equipment | 8,817 | 8,817 | 9,426 | ||
Furniture and fixtures | |||||
Property, Plant and Equipment [Line Items] | |||||
Gross property and equipment | 3,796 | 3,796 | 4,730 | ||
Capitalized internal-use software | |||||
Property, Plant and Equipment [Line Items] | |||||
Gross property and equipment | 15,998 | 15,998 | 10,971 | ||
Construction-in-progress | |||||
Property, Plant and Equipment [Line Items] | |||||
Gross property and equipment | $ 5,400 | $ 5,400 | $ 6,000 |
Deferred Contract Costs (Detail
Deferred Contract Costs (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | Jan. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |||||
Deferred contract costs | $ 43,400,000 | $ 43,400,000 | $ 46,400,000 | ||
Amortization of deferred contract costs | 5,100,000 | $ 4,900,000 | 15,286,000 | $ 14,178,000 | |
Impairment loss in relation to costs capitalized | $ 0 | $ 0 | $ 0 | $ 0 |
Leases - Information About Leas
Leases - Information About Lease on Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Oct. 31, 2023 | Jan. 31, 2023 |
Assets | ||
Lease right-of-use assets | $ 10,120 | $ 13,982 |
Liabilities | ||
Lease liabilities | 6,088 | 5,904 |
Lease liabilities, non-current | $ 8,391 | $ 12,704 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 USD ($) | Oct. 31, 2022 USD ($) | Oct. 31, 2023 USD ($) location | Oct. 31, 2022 USD ($) | |
Leases [Abstract] | ||||
Number of office locations subleased | location | 1 | |||
Lease term (in years) | 2 years | 2 years | ||
Weighted average remaining lease term (in years) | 3 years 3 months 18 days | 3 years 3 months 18 days | ||
Weighted average discount rate | 3.70% | 3.70% | ||
Impairment charges | $ | $ 0 | $ 0 | $ 0.8 | $ 0 |
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, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Leases [Abstract] | ||||
Operating lease expense | $ 1,089 | $ 1,371 | $ 3,760 | $ 4,293 |
Short-term lease expense | 567 | 484 | 1,335 | 1,342 |
Variable lease expense | $ 270 | $ 285 | $ 867 | $ 957 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Leases [Abstract] | ||||
Cash paid for amounts included in the measurement of lease liabilities | $ 1,612 | $ 1,601 | $ 4,934 | $ 4,840 |
Debt and Financing Arrangemen_3
Debt and Financing Arrangements - Additional Information (Details) $ / shares in Units, shares in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Jun. 25, 2020 USD ($) day $ / shares shares | Oct. 31, 2023 USD ($) $ / shares | Oct. 31, 2023 USD ($) $ / shares | Oct. 31, 2022 USD ($) | Oct. 31, 2023 USD ($) $ / shares | Oct. 31, 2022 USD ($) | Oct. 13, 2023 USD ($) | Jan. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | ||||||||
Repurchases of convertible senior notes | $ (223,471,000) | $ 0 | ||||||
2025 Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Repurchases of convertible senior notes | $ (223,500,000) | |||||||
Conversion rate | 0.0249507 | |||||||
2028 Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Conversion rate | 0.03656 | |||||||
Convertible Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 1.25% | 1.50% | ||||||
Interest expense related to the notes | $ 1,454,000 | $ 1,360,000 | 4,184,000 | $ 4,072,000 | ||||
Net proceeds from debt offering, after deducting initial purchaser discounts and debt issuance costs paid or payable | $ 390,400,000 | |||||||
Initial conversion price (in dollars per share) | $ / shares | $ 27.35 | |||||||
Event of default, option to accelerate amounts due, minimum percentage of aggregate principal amount of outstanding debt | 25% | |||||||
Long-term debt | 447,389,000 | 447,389,000 | 447,389,000 | $ 282,908,000 | ||||
Convertible Senior Notes | Debt Conversion Terms, One | ||||||||
Debt Instrument [Line Items] | ||||||||
Threshold trading days | day | 20 | |||||||
Threshold consecutive trading days | day | 30 | |||||||
Threshold percentage of stock price trigger | 130% | |||||||
Convertible Senior Notes | Debt Conversion Terms, Two | ||||||||
Debt Instrument [Line Items] | ||||||||
Threshold trading days | day | 5 | |||||||
Threshold consecutive trading days | day | 10 | |||||||
Threshold percentage of product of last reported sales price of common stock and conversion rate on each such trading day | 98% | |||||||
Convertible Senior Notes | On or after July 6, 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Threshold trading days | day | 20 | |||||||
Threshold consecutive trading days | day | 30 | |||||||
Threshold percentage of stock price trigger | 130% | |||||||
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% | |||||||
Convertible Senior Notes | 2025 Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount of debt issued | $ 287,500,000 | $ 230,000,000 | $ 230,000,000 | $ 230,000,000 | ||||
Stated interest rate | 1.25% | 1.25% | 1.25% | |||||
Repurchase amount | $ 227,500,000 | $ 227,500,000 | $ 227,500,000 | |||||
Interest expense related to the notes | $ 4,000,000 | $ 4,000,000 | ||||||
Initial conversion price (in dollars per share) | $ / shares | $ 40.08 | $ 40.08 | $ 40.08 | |||||
Long-term debt | $ 56,879,000 | $ 56,879,000 | $ 56,879,000 | |||||
Effective interest rate | 1.91% | 1.91% | 1.91% | |||||
Issuance costs attributable to company | $ (2,600,000) | $ (2,600,000) | $ (2,600,000) | |||||
Convertible Senior Notes | 2025 Notes | On or after July 6, 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption, threshold trading days immediately preceding maturity date | day | 41 | |||||||
Convertible Senior Notes | 2028 Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 1.50% | 1.50% | 1.50% | |||||
Long-term debt | $ 390,510,000 | $ 390,510,000 | $ 390,510,000 | |||||
Effective interest rate | 2.13% | 2.13% | 2.13% | |||||
Issuance costs attributable to company | $ (12,000,000) | |||||||
Convertible Senior Notes | 2028 Notes | On or after July 6, 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption, threshold trading days immediately preceding maturity date | day | 61 | |||||||
Convertible Senior Notes | 2025 Capped Calls | ||||||||
Debt Instrument [Line Items] | ||||||||
Net cost incurred to purchase capped calls | $ 35,700,000 | |||||||
Convertible Senior Notes | 2025 Capped Calls | 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 | 7,200 | |||||||
Automatic exercise period for capped calls, trading days | day | 40 | |||||||
Convertible Senior Notes | 2028 Capped Calls | ||||||||
Debt Instrument [Line Items] | ||||||||
Net cost incurred to purchase capped calls | $ 55,100,000 | |||||||
Convertible Senior Notes | 2028 Capped Calls | Capped Calls | ||||||||
Debt Instrument [Line Items] | ||||||||
Initial strike price (in dollars per share) | $ / shares | $ 27.35 | |||||||
Cap price (in dollars per share) | $ / shares | $ 42.90 | |||||||
Number of shares of common stock covered by capped calls (in shares) | shares | 14,700 | |||||||
Automatic exercise period for capped calls, trading days | day | 60 |
Debt and Financing Arrangemen_4
Debt and Financing Arrangements - Net Carrying Amount (Details) - Convertible Senior Notes - USD ($) $ in Thousands | Oct. 31, 2023 | Oct. 13, 2023 | Jan. 31, 2023 |
Liability Component: | |||
Principal | $ 460,000 | $ 287,500 | |
Less: unamortized issuance costs | (12,611) | (4,592) | |
Net carrying amount | 447,389 | $ 282,908 | |
2025 Notes | |||
Liability Component: | |||
Principal | 57,500 | ||
Less: unamortized issuance costs | (621) | ||
Net carrying amount | 56,879 | ||
2028 Notes | |||
Liability Component: | |||
Principal | $ 402,500 | ||
Less: unamortized issuance costs | (11,990) | ||
Net carrying amount | $ 390,510 |
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, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Debt Instrument [Line Items] | ||||
Contractual interest expense | $ 931 | $ 899 | $ 2,728 | $ 2,696 |
Amortization of debt issuance costs | 523 | 461 | 1,456 | 1,376 |
Total interest expense related to the Notes | $ 1,454 | $ 1,360 | $ 4,184 | $ 4,072 |
Deferred Revenue and Performa_3
Deferred Revenue and Performance Obligations - Deferred Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Increase (Decrease) In Contract with Customer, Liability [Roll Forward] | ||||
Deferred revenue, beginning of period | $ 196,605 | $ 169,534 | $ 209,051 | $ 170,224 |
Billings | 108,534 | 104,384 | 306,950 | 278,462 |
Deferred revenue assumed in the Catalytic acquisition | 0 | 0 | 0 | 856 |
Revenue recognized | (108,720) | (94,203) | (319,582) | (269,827) |
Deferred revenue, end of period | $ 196,419 | $ 179,715 | $ 196,419 | $ 179,715 |
Deferred Revenue and Performa_4
Deferred Revenue and Performance Obligations - Additional Information (Details) $ in Millions | Oct. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Future estimated revenue related to performance obligations | $ 206 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-11-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period | 24 months |
Common Stock and Stockholders_3
Common Stock and Stockholders' Equity - Additional Information (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Oct. 31, 2023 USD ($) $ / shares shares | Oct. 31, 2023 USD ($) $ / shares shares | Oct. 31, 2022 USD ($) $ / shares | Oct. 31, 2023 USD ($) plan purchase_period $ / shares shares | Oct. 31, 2022 USD ($) $ / shares shares | Jul. 31, 2023 shares | Jan. 31, 2023 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of equity incentive plans | plan | 2 | ||||||
Number of shares authorized for grant (in shares) | shares | 31,519,241 | 31,519,241 | 31,519,241 | 28,881,327 | |||
Number of shares available for grant (in shares) | shares | 17,224,509 | 17,224,509 | 17,224,509 | 13,581,239 | |||
Treasury stock (in shares) | shares | (2,331,002) | (2,331,002) | (2,331,002) | 0 | |||
Stock repurchased (in USD per share) | $ / shares | $ 21.45 | ||||||
Common stock repurchased | $ (50,000) | $ (50,000) | $ (50,000) | ||||
Options granted (in shares) | shares | 0 | ||||||
Aggregate intrinsic value of stock options exercised | 4,900 | $ 6,400 | $ 20,900 | $ 37,000 | |||
Unrecognized compensation cost related to unvested stock options | $ 2,700 | 2,700 | 2,700 | ||||
Stock-based compensation expense | $ 31,828 | $ 31,444 | $ 94,910 | $ 86,478 | |||
Purchase price (in dollars per share) | $ / shares | $ 19.30 | $ 19.30 | $ 20.43 | $ 19.30 | $ 20.43 | ||
Treasury Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Treasury stock (in shares) | shares | (2,331,002) | (2,331,002) | (2,331,002) | 0 | 0 | ||
Common stock repurchased | $ (50,000) | $ (50,000) | |||||
Stock options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted (in shares) | shares | 0 | 0 | |||||
Unrecognized compensation cost related to unvested awards, period for recognition (in years) | 1 year 3 months 18 days | ||||||
RSUs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation cost related to unvested awards, period for recognition (in years) | 2 years 4 months 24 days | ||||||
Unrecognized compensation cost related to unvested RSUs | $ 234,100 | $ 234,100 | $ 234,100 | ||||
PSUs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation cost related to unvested awards, period for recognition (in years) | 1 year 3 months 18 days | ||||||
Unrecognized compensation cost related to unvested RSUs | $ 6,900 | $ 6,900 | $ 6,900 | ||||
Vesting period (in years) | 3 years | ||||||
PSUs | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance condition (as a percent) | 0% | 0% | 0% | ||||
PSUs | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance condition (as a percent) | 200% | 200% | 200% | ||||
ESPP | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares available for grant (in shares) | shares | 3,557,026 | 3,557,026 | 3,557,026 | ||||
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 | $ 1,300 | $ 1,200 | $ 4,700 | $ 3,400 | |||
Amount withheld on behalf of employees for future purchase | $ 2,000 | $ 2,100 | $ 7,800 | $ 7,700 | |||
Shares purchased (in shares) | shares | 325,983 | 280,725 |
Common Stock and Stockholders_4
Common Stock and Stockholders' Equity - Shares Available for Issuance (Details) - shares | Oct. 31, 2023 | Jan. 31, 2023 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for grant (in shares) | 17,224,509 | 13,581,239 |
Total common stock reserved at period end (in shares) | 34,668,140 | |
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) | 13,886,605 | |
Number of shares available for grant (in shares) | 17,224,509 | |
ESPP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for grant (in shares) | 3,557,026 |
Common Stock and Stockholders_5
Common Stock and Stockholders' Equity - Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Oct. 31, 2023 USD ($) $ / shares shares | Jan. 31, 2023 USD ($) $ / shares shares | |
Number of Shares | ||
Outstanding, beginning balance (in shares) | shares | 6,150,981 | |
Granted (in shares) | shares | 0 | |
Exercised (in shares) | shares | (1,026,320) | |
Canceled (in shares) | shares | (71,995) | |
Outstanding, ending balance (in shares) | shares | 5,052,666 | 6,150,981 |
Vested (in shares) | shares | 4,843,446 | |
Weighted Average Exercise Price | ||
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 10.61 | |
Granted (in dollars per share) | $ / shares | 0 | |
Exercised (in dollars per share) | $ / shares | 7.75 | |
Canceled (in dollars per share) | $ / shares | 33.51 | |
Outstanding, ending balance (in dollars per share) | $ / shares | 10.86 | $ 10.61 |
Vested (in dollars per share) | $ / shares | $ 10.24 | |
Weighted Average Remaining Contractual Term | ||
Outstanding | 4 years 8 months 12 days | 5 years 3 months 18 days |
Vested | 4 years 7 months 6 days | |
Aggregate Intrinsic Value | ||
Outstanding | $ | $ 52,696 | $ 117,986 |
Vested | $ | $ 52,052 |
Common Stock and Stockholders_6
Common Stock and Stockholders' Equity - Restricted Stock Units and Performance Stock Units Activity (Details) | 9 Months Ended |
Oct. 31, 2023 $ / 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 | 8,012,482 |
Granted (in shares) | shares | 4,008,591 |
Vested (in shares) | shares | (1,671,952) |
Forfeited or canceled (in shares) | shares | (2,599,165) |
Outstanding, ending balance (in shares) | shares | 7,749,956 |
Weighted Average Grant Date Fair Value Per Share | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 32.55 |
Granted (in dollars per share) | $ / shares | 31.52 |
Vested (in dollars per share) | $ / shares | 32.51 |
Forfeited or canceled (in dollars per share) | $ / shares | 33.23 |
Outstanding, ending balance (in dollars per share) | $ / shares | $ 31.80 |
PSUs | |
Number of Awards | |
Outstanding, beginning balance (in shares) | shares | 825,058 |
Granted (in shares) | shares | 594,290 |
Vested (in shares) | shares | (16,718) |
Forfeited or canceled (in shares) | shares | (152,606) |
Performance adjustment for 2022 PSU Awards (in shares) | shares | (698,983) |
Outstanding, ending balance (in shares) | shares | 551,041 |
Weighted Average Grant Date Fair Value Per Share | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 33.27 |
Granted (in dollars per share) | $ / shares | 34.98 |
Vested (in dollars per share) | $ / shares | 41.17 |
Forfeited or canceled (in dollars per share) | $ / shares | 35.71 |
Performance adjustment for 2021 PSU Awards (in dollars per share) | $ / shares | 29.22 |
Outstanding, ending balance (in dollars per share) | $ / shares | $ 35.18 |
Common Stock and Stockholders_7
Common Stock and Stockholders' Equity - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 31,828 | $ 31,444 | $ 94,910 | $ 86,478 |
Cost of revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 1,820 | 1,937 | 5,860 | 4,948 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 11,128 | 10,824 | 34,002 | 30,066 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 8,094 | 8,004 | 22,362 | 22,533 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 10,786 | $ 10,679 | $ 32,686 | $ 28,931 |
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, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Numerator: | ||||
Net loss attributable to PagerDuty, Inc. common stockholders | $ (15,125) | $ (32,542) | $ (51,125) | $ (103,861) |
Denominator: | ||||
Weighted average shares used in calculating net loss per share, basic (in shares) | 93,104 | 89,285 | 92,257 | 88,200 |
Weighted average shares used in calculating net loss per share, diluted (in shares) | 93,104 | 89,285 | 92,257 | 88,200 |
Net loss per share, basic, attributable to PagerDuty, Inc. (in dollars per share) | $ (0.16) | $ (0.36) | $ (0.55) | $ (1.18) |
Net loss per share, diluted, attributable to PagerDuty, Inc. (in dollars per share) | $ (0.16) | $ (0.36) | $ (0.55) | $ (1.18) |
Net Loss per Share - Anti-dilut
Net Loss per Share - Anti-dilutive Securities (Details) - shares shares in Thousands | 9 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
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) | 13,354 | 16,970 |
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) | 44 | 63 |
Shares issuable pursuant to the ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 188 | 202 |
Net Loss per Share - Additional
Net Loss per Share - Additional Information (Details) - 2025 Notes shares in Millions | 9 Months Ended | |
Jun. 25, 2020 | Oct. 31, 2023 shares | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Conversion rate | 0.0249507 | |
Potentially dilutive securities (in shares) | 7,173 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Expense (benefit) from income taxes | $ (41) | $ 112 | $ (197) | $ (1,302) |
Tax benefit related to release of valuation allowance | $ 0 | $ (1,330) |
Geographic Information - Revenu
Geographic Information - Revenue by Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 108,720 | $ 94,203 | $ 319,582 | $ 269,827 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 79,487 | 72,267 | 232,576 | 206,127 |
International | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 29,233 | $ 21,936 | $ 87,006 | $ 63,700 |
Geographic Information - Additi
Geographic Information - Additional Information (Details) - Long-Lived Assets - Geographic Concentration Risk | 9 Months Ended | 12 Months Ended |
Oct. 31, 2023 | Jan. 31, 2023 | |
United States | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 84% | 88% |
Canada | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 13% | 10% |
PORTUGAL | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 2% | 1% |
United Kingdom | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 1% | 1% |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - Jeli $ in Millions | Nov. 15, 2023 USD ($) |
Subsequent Event [Line Items] | |
Equity interests acquired (as a percent) | 100% |
Purchase consideration | $ 27 |