Cover
Cover - shares | 9 Months Ended | |
Oct. 31, 2021 | Dec. 06, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-40528 | |
Entity Registrant Name | Sprinklr, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-4771485 | |
Entity Address, Address Line One | 29 West 35th Street | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10001 | |
City Area Code | 917 | |
Local Phone Number | 933-7800 | |
Title of 12(b) Security | Class A common stock, par value$0.00003 per share | |
Trading Symbol | CXM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001569345 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --01-31 | |
Common Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 98,284,905 | |
Common Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 157,217,005 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Oct. 31, 2021 | Jan. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 522,386,000 | $ 68,037,000 |
Marketable securities | 19,111,000 | 212,652,000 |
Accounts receivable, net of allowance for doubtful accounts of $3.0 million and $3.2 million, respectively | 103,579,000 | 116,278,000 |
Prepaid expenses and other current assets | 96,807,000 | 95,819,000 |
Total current assets | 741,883,000 | 492,786,000 |
Property and equipment, net | 13,441,000 | 9,011,000 |
Goodwill and other intangible assets | 50,778,000 | 47,427,000 |
Other non-current assets | 38,608,000 | 36,669,000 |
Total assets | 844,710,000 | 585,893,000 |
Current liabilities: | ||
Accounts payable | 11,055,000 | 16,955,000 |
Accrued expenses and other current liabilities | 78,234,000 | 63,170,000 |
Deferred revenue | 221,918,000 | 221,439,000 |
Total current liabilities | 311,207,000 | 301,564,000 |
Senior subordinated secured convertible notes | 0 | 78,848,000 |
Deferred revenue less current portion | 11,854,000 | 19,873,000 |
Deferred tax liability, long-term | 869,000 | 869,000 |
Other liabilities, long-term | 2,366,000 | 2,006,000 |
Total liabilities | 326,296,000 | 403,160,000 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity: | ||
Preferred stock | 0 | |
Common stock | 4,000 | |
Treasury stock, at cost, 14,130,784 shares as of October 31, 2021 and January 31, 2021, respectively | (23,831,000) | (23,831,000) |
Additional paid-in capital | 960,697,000 | 122,061,000 |
Accumulated other comprehensive (loss) income | (5,000) | 787,000 |
Accumulated deficit | (418,455,000) | (341,280,000) |
Total stockholders’ equity | 518,414,000 | 182,733,000 |
Total liabilities and stockholders’ equity | 844,710,000 | 585,893,000 |
Convertible Preferred Stock | ||
Stockholders’ equity: | ||
Preferred stock | $ 424,992,000 | |
Class A | ||
Stockholders’ equity: | ||
Common stock | 2,000 | |
Class B | ||
Stockholders’ equity: | ||
Common stock | $ 6,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Oct. 31, 2021 | Jan. 31, 2021 |
Allowance for doubtful accounts | $ 3 | $ 3.2 |
Preferred stock, par value (in dollars per share) | $ 0.00003 | $ 0.00003 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 0 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.00003 | $ 0.00003 |
Common stock, shares authorized (in shares) | 0 | 299,000,000 |
Common stock, shares issued (in shares) | 0 | 109,587,048 |
Common stock, shares outstanding (in shares) | 0 | 95,456,264 |
Treasury stock (in shares) | 14,130,784 | 14,130,784 |
Convertible Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.00003 | $ 0.00003 |
Preferred stock, shares authorized (in shares) | 0 | 122,309,253 |
Preferred stock, shares issued (in shares) | 0 | 120,902,273 |
Preferred stock, shares outstanding (in shares) | 0 | 120,902,273 |
Class A | ||
Common stock, par value (in dollars per share) | $ 0.00003 | $ 0.00003 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 0 |
Common stock, shares issued (in shares) | 55,069,074 | 0 |
Common stock, shares outstanding (in shares) | 55,069,074 | 0 |
Class B | ||
Common stock, par value (in dollars per share) | $ 0.00003 | $ 0.00003 |
Common stock, shares authorized (in shares) | 310,000,000 | 0 |
Common stock, shares issued (in shares) | 200,313,313 | 0 |
Common stock, shares outstanding (in shares) | 200,313,313 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Revenue: | ||||
Revenue | $ 127,056 | $ 96,332 | $ 356,728 | $ 282,818 |
Costs of revenue: | ||||
Cost of revenue | 38,700 | 30,223 | 107,748 | 88,979 |
Gross profit | 88,356 | 66,109 | 248,980 | 193,839 |
Operating expenses: | ||||
Research and development | 16,621 | 10,394 | 44,836 | 26,874 |
Sales and marketing | 76,191 | 45,228 | 207,079 | 137,060 |
General and administrative | 21,833 | 25,768 | 63,364 | 48,234 |
Total operating expenses | 114,645 | 81,390 | 315,279 | 212,168 |
Operating loss | (26,289) | (15,281) | (66,299) | (18,329) |
Other expense, net | (1,119) | (2,587) | (4,744) | (5,949) |
Loss before provision for income taxes | (27,408) | (17,868) | (71,043) | (24,278) |
Provision for income taxes | 1,823 | 1,100 | 6,132 | 2,888 |
Net loss | $ (29,231) | $ (18,968) | $ (77,175) | $ (27,166) |
Net loss per share attributable to Class A and Class B common stockholders, basic (in dollars per share) | $ (0.11) | $ (0.21) | $ (0.44) | $ (0.31) |
Net loss per share attributable to Class A and Class B common stockholders, diluted (in dollars per share) | $ (0.11) | $ (0.21) | $ (0.44) | $ (0.31) |
Weighted average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic (in shares) | 255,195,000 | 91,672,000 | 174,497,000 | 88,428,000 |
Weighted average shares used in computing net loss per share attributable to Class A and Class B common stockholders, diluted (in shares) | 255,195,000 | 91,672,000 | 174,497,000 | 88,428,000 |
Subscription | ||||
Revenue: | ||||
Revenue | $ 109,941 | $ 85,040 | $ 310,020 | $ 249,507 |
Costs of revenue: | ||||
Cost of revenue | 22,835 | 19,392 | 66,228 | 55,645 |
Professional services | ||||
Revenue: | ||||
Revenue | 17,115 | 11,292 | 46,708 | 33,311 |
Costs of revenue: | ||||
Cost of revenue | $ 15,865 | $ 10,831 | $ 41,520 | $ 33,334 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (29,231) | $ (18,968) | $ (77,175) | $ (27,166) |
Foreign currency translation adjustments | 13 | 435 | (770) | 1,121 |
Unrealized losses on investments | (8) | (12) | (22) | (12) |
Total comprehensive loss | $ (29,226) | $ (18,545) | $ (77,967) | $ (26,057) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands | Total | Senior Subordinated Secured Convertible Note | Preferred StockConvertible Preferred Stock | Common Stock | Common StockClass A and Class B Common Stock | Common StockClass A and Class B Common StockSenior Subordinated Secured Convertible Note | Additional Paid-in Capital | Additional Paid-in CapitalSenior Subordinated Secured Convertible Note | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance (in shares) at Jan. 31, 2020 | 102,408 | 99,002 | 0 | (13,376) | |||||||
Beginning balance at Jan. 31, 2020 | $ (22,351) | $ 245,970 | $ 3 | $ 0 | $ 50,117 | $ (17,957) | $ (988) | $ (299,496) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Issuance of class A common stock upon initial public offering, net of underwriting discounts and issuance costs (in shares) | 19,902 | ||||||||||
Issuance of Class A common stock upon initial public offering, net of underwriting discounts and issuance costs | 191,752 | $ 191,752 | |||||||||
Stock-based compensation - equity classified awards | 32,047 | 32,047 | |||||||||
Exercise of stock options (in shares) | 8,228 | ||||||||||
Exercise of stock options and release of vested restricted stock units | 13,375 | 13,375 | |||||||||
Issuance of common stock to a third party (in shares) | 1,014 | ||||||||||
Issuance of common stock to a third party | 5,000 | 5,000 | |||||||||
Issuance of common stock warrants | 7,639 | 7,639 | |||||||||
Other comprehensive income (loss) | 1,109 | 1,109 | |||||||||
Net loss | (27,166) | (27,166) | |||||||||
Ending balance (in shares) at Oct. 31, 2020 | 122,310 | 108,244 | 0 | (13,376) | |||||||
Ending balance at Oct. 31, 2020 | 201,405 | $ 437,722 | $ 3 | $ 0 | 108,178 | $ (17,957) | 121 | (326,662) | |||
Beginning balance (in shares) at Jul. 31, 2020 | 102,408 | 101,554 | 0 | (13,376) | |||||||
Beginning balance at Jul. 31, 2020 | (14,516) | $ 245,970 | $ 3 | $ 0 | 65,464 | $ (17,957) | (302) | (307,694) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Issuance of class A common stock upon initial public offering, net of underwriting discounts and issuance costs (in shares) | 19,902 | ||||||||||
Issuance of Class A common stock upon initial public offering, net of underwriting discounts and issuance costs | 191,752 | $ 191,752 | |||||||||
Stock-based compensation - equity classified awards | 23,056 | 23,056 | |||||||||
Exercise of stock options (in shares) | 6,690 | ||||||||||
Exercise of stock options and release of vested restricted stock units | 12,019 | 12,019 | |||||||||
Issuance of common stock warrants | 7,639 | 7,639 | |||||||||
Other comprehensive income (loss) | 423 | 423 | |||||||||
Net loss | (18,968) | (18,968) | |||||||||
Ending balance (in shares) at Oct. 31, 2020 | 122,310 | 108,244 | 0 | (13,376) | |||||||
Ending balance at Oct. 31, 2020 | 201,405 | $ 437,722 | $ 3 | $ 0 | 108,178 | $ (17,957) | 121 | (326,662) | |||
Beginning balance (in shares) at Jan. 31, 2021 | 120,903 | 109,587 | 0 | (14,131) | |||||||
Beginning balance at Jan. 31, 2021 | 182,733 | $ 424,992 | $ 4 | $ 0 | 122,061 | $ (23,831) | 787 | (341,280) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Issuance of class A common stock upon initial public offering, net of underwriting discounts and issuance costs (in shares) | 18,288 | ||||||||||
Issuance of Class A common stock upon initial public offering, net of underwriting discounts and issuance costs | 275,973 | 275,973 | |||||||||
Conversion of convertible preferred stock and senior subordinated secured convertible notes (in shares) | (120,903) | 120,903 | 9,694 | ||||||||
Conversion of convertible preferred stock and senior subordinated secured convertible notes | 0 | $ 82,114 | $ (424,992) | $ 4 | 424,988 | $ 82,114 | |||||
Stock-based compensation - equity classified awards | 37,668 | 37,668 | |||||||||
Reclassification of common stock to class B common stock (in shares) | (117,176) | 117,176 | |||||||||
Reclassification of common stock to Class B common stock | 0 | $ (4) | $ 4 | ||||||||
Exercise of stock options and release of vested restricted stock units (in shares) | 7,589 | 1,454 | |||||||||
Exercise of stock options and release of vested restricted stock units | $ 17,893 | 17,893 | |||||||||
Exercise of stock options (in shares) | 8,882 | ||||||||||
Net exercise of common stock warrants (in shares) | 230 | ||||||||||
Issuance of common stock under deferred stock compensation plan (in shares) | 1,770 | ||||||||||
Other comprehensive income (loss) | $ (792) | (792) | |||||||||
Net loss | (77,175) | (77,175) | |||||||||
Ending balance (in shares) at Oct. 31, 2021 | 0 | 0 | 269,515 | (14,131) | |||||||
Ending balance at Oct. 31, 2021 | 518,414 | $ 0 | $ 0 | $ 8 | 960,697 | $ (23,831) | (5) | (418,455) | |||
Beginning balance (in shares) at Jul. 31, 2021 | 0 | 0 | 269,029 | (14,131) | |||||||
Beginning balance at Jul. 31, 2021 | 533,984 | $ 0 | $ 0 | $ 8 | 947,041 | $ (23,831) | (10) | (389,224) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Issuance of Class A common stock upon initial public offering, net of underwriting discounts and issuance costs | 19 | 19 | |||||||||
Stock-based compensation - equity classified awards | 12,403 | 12,403 | |||||||||
Exercise of stock options and release of vested restricted stock units (in shares) | 486 | ||||||||||
Exercise of stock options and release of vested restricted stock units | 1,234 | 1,234 | |||||||||
Other comprehensive income (loss) | 5 | 5 | |||||||||
Net loss | (29,231) | (29,231) | |||||||||
Ending balance (in shares) at Oct. 31, 2021 | 0 | 0 | 269,515 | (14,131) | |||||||
Ending balance at Oct. 31, 2021 | $ 518,414 | $ 0 | $ 0 | $ 8 | $ 960,697 | $ (23,831) | $ (5) | $ (418,455) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Cash flow from operating activities: | ||
Net loss | $ (77,175) | $ (27,166) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization expense | 5,638 | 4,248 |
Bad debt expense | 47 | 427 |
Stock-based compensation expense, net of amounts capitalized | 37,953 | 32,713 |
Non-cash interest paid in kind and discount amortization | 3,266 | 3,494 |
Deferred income taxes | 1 | 130 |
Other noncash items, net | (1,187) | (149) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 12,741 | 22,819 |
Prepaid expenses and other current assets | (1,104) | (1,837) |
Other noncurrent assets | (1,817) | 5,182 |
Accounts payable | (5,774) | 586 |
Accrued expenses and other current liabilities | 16,413 | (335) |
Deferred revenue | (7,132) | (24,235) |
Other liabilities | 197 | (103) |
Net cash (used in) provided by operating activities | (17,933) | 15,774 |
Cash flow from investing activities: | ||
Purchases of marketable securities | (61,758) | (170,035) |
Sales of marketable securities | 56,652 | 0 |
Maturities of marketable securities | 197,555 | 0 |
Purchases of property and equipment | (5,197) | (2,078) |
Capitalized internal-use software | (4,150) | (2,504) |
Acquisitions, net of cash acquired | (3,625) | 0 |
Net cash provided by (used in) investing activities | 179,477 | (174,617) |
Cash flow from financing activities: | ||
Proceeds from issuance of common stock upon initial public offering, net of underwriting discounts and commissions and other offering costs | 275,974 | 0 |
Proceeds from issuance of convertible preferred stock, net of issuance costs | 0 | 191,752 |
Proceeds from senior subordinated secured convertible notes | 0 | 73,425 |
Proceeds from issuance of stock warrants | 0 | 7,639 |
Proceeds from short-term borrowings | 0 | 49,973 |
Repayments of short-term borrowings | 0 | (49,973) |
Payments of debt and equity issuance costs | 0 | (160) |
Proceeds from issuance of common stock upon exercise of stock options | 17,891 | 13,375 |
Net cash provided by financing activities | 293,865 | 286,031 |
Effect of exchange rate fluctuations on cash and cash equivalents | (1,060) | (251) |
Net change in cash and cash equivalents | 454,349 | 126,937 |
Cash and cash equivalents at beginning of period | 68,037 | 10,470 |
Cash and cash equivalents at end of period | 522,386 | 137,407 |
Supplemental disclosure of cash flow information | ||
Cash paid for income taxes | 2,525 | 2,290 |
Cash paid for interest | 0 | 319 |
Supplemental disclosure for noncash investing and financing | ||
Net exercise of common stock warrants | 18 | 0 |
Stock-based compensation expense capitalized in internal-use software | 465 | 0 |
Accrued purchases of property and equipment | 126 | 182 |
Common stock issued in exchange for other noncash assets | $ 0 | $ 5,000 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Parenthetical) | Oct. 31, 2020$ / shares |
Series G-1 Preferred Stock | |
Offering price (in dollars per share) | $ 9.25 |
Series G-2 Preferred Stock | |
Offering price (in dollars per share) | $ 11 |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Oct. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business Description of Business Founded in 2009, Sprinklr, Inc. (“Sprinklr” or the “Company”) provides enterprise cloud software products that enable organizations to do marketing, advertising, research, care, sales and engagement across modern channels including social, messaging, chat and text through its unified Customer Experience Management (“CXM”) software platform. The Company was incorporated in Delaware in 2011 and is headquartered in New York, New York, USA with 16 operating subsidiaries globally. Initial Public Offering On June 25, 2021, the Company completed its initial public offering (“IPO”), in which it issued and sold 16,625,000 shares of its Class A common stock at a public offering price of $16.00 per share. On July 1, 2021, the underwriters’ option to purchase 1,662,500 additional shares of Class A common stock was exercised in full. The Company received net proceeds of $276.0 million after deducting underwriting discounts and commissions and other offering expenses of $16.6 million. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies (a) Basis of Presentation and Principles of Consolidation The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America, (“U.S. GAAP”), and applicable rules and regulations of the Securities and Exchange Commission, (“SEC”), regarding interim financial reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP have been condensed or omitted, and accordingly the balance sheet as of January 31, 2021, and related disclosures, have been derived from the audited consolidated financial statements at that date but do not include all of the information required by U.S. GAAP for complete consolidated financial statements. These unaudited condensed consolidated financial statements have been prepared on the same basis as the Company’s annual consolidated financial statements and, in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for the fair presentation of the Company’s condensed consolidated financial information. The results of operations for the three and nine months ended October 31, 2021 are not necessarily indicative of the results to be expected for the year ending January 31, 2022 or for any other interim period or for any other future year. The accompanying interim unaudited condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto for the year ended January 31, 2021 included in the Company’s final prospectus (“Final Prospectus”) that forms a part of the Registration Statement on Form S-1 (File No. 333-256657) (the “Registration Statement”) for its IPO, dated as of June 22, 2021, and filed with the SEC pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended (the “Securities Act”) on June 24, 2021. There have been no material changes in the significant accounting policies as described in the Company’s consolidated financial statements for the fiscal year ended January 31, 2021 included in the Final Prospectus. (b) Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and 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. Significant estimates and assumptions made in the accompanying consolidated financial statements include, but are not limited to, common stock valuations and stock-based compensation expense, software costs eligible for capitalization, recoverability of long-lived and intangible assets and the allowance for doubtful accounts. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and on assumptions that it believes are reasonable and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates and assumptions. (c) Fiscal Year The Company’s fiscal year ends on January 31. References to fiscal year 2022, for example, refer to the fiscal year ending January 31, 2022. (d) Segments The Company operates in one operating segment because the Company’s offerings operate on its single Customer Experience Management Platform, the Company’s products are deployed in a similar way, and the Company’s chief operating decision maker evaluates the Company’s financial information and assesses the performance of the Company on a consolidated basis. Because the Company operates in one operating segment, all required financial segment information can be found in the consolidated financial statements. (e) Concentration of Risk and Significant Customers The Company has no significant off-balance sheet risks related to foreign currency exchange contracts, option contracts or other foreign currency hedging arrangements. The Company’s financial instruments that are potentially subject to credit risk consist primarily of cash and cash equivalents and accounts receivable. Although the Company deposits its cash with multiple financial institutions, its deposits generally exceed federally insured limits. The Company’s accounts receivable are derived from invoiced customers located primarily in North America and Europe. The Company performs periodic credit evaluations of its customers and generally does not require collateral. No single customer accounted for more than 10% of total revenue in the three or nine months ended October 31, 2021. In addition, the Company relies upon third-party hosted infrastructure partners globally to serve customers and operate certain aspects of its services, such as environments for development testing, training, sales demonstrations, and production usage. Given this, any disruption of or interference at the Company's hosted infrastructure partners would impact the Company’s operations and its business could be adversely impacted. (f) Revenue Recognition The Company accounts for revenue in accordance with Accounting Standard Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (ASC 606) . For further discussion of the Company’s accounting policies related to revenue see Note 3, Revenue Recognition. (g) Stock-Based Compensation The Company accounts for stock-based compensation as an expense in the statements of operations based on the awards’ grant date fair values. The Company estimates the fair value of service-based options granted using the Black-Scholes option pricing model. Stock options that include service, performance and market conditions are valued using the Monte-Carlo simulation model. The Black-Scholes option pricing model requires inputs based on certain assumptions, including (a) the fair value per share of the Company’s common stock (b) the expected stock price volatility, (c) the calculation of expected term of the award, (d) the risk-free interest rate and (e) expected dividends. A Monte-Carlo simulation is an analytical method used to estimate value by performing a large number of simulations or trial runs and determining a value based on the possible outcomes from these trial runs. The fair value of stock-based payments is recognized as compensation expense, net of expected forfeitures, over the requisite service period, which is generally the vesting period, with the exception of the fair value of stock-based payments for awards that include service, performance and market conditions, which is recognized as compensation expense over the requisite service period as achievement of the performance objective becomes probable. The Company issued certain performance stock units (“PSUs”), that vest upon the satisfaction of time-based service, performance-based and market conditions. The Company estimates compensation cost based on the grant date fair value and recognize the expense on a graded vesting basis over the vesting period of the award. As the PSUs are subject to a market condition (stock price), the grant date fair value is measured using a Monte Carlo simulation approach, which estimates the fair value of awards based on randomly generated simulated stock-price paths through a lattice-type structure. The performance-based vesting condition is satisfied upon the occurrence of a qualifying event, which is generally defined as a change in control transaction or the effective date of a registration statement of the Company filed under the Securities Act for the sale of the Company's common stock. Upon the effectiveness of the Registration Statement on June 22, 2021, the performance-based vesting condition was satisfied, and therefore, the Company commenced recognition of compensation expense using the accelerated attribution method over the requisite service period. The Company estimates fair value of its restricted stock units (“RSU”) based on the fair value of the underlying common stock, net of estimated forfeitures. Subsequent to the IPO, the Company determines the fair value using the closing price of its Class A common stock as reported on the date of grant. (h) Recently Issued Accounting Pronouncements Not Yet Adopted The Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”) allows the Company, as an emerging growth company, to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected to use this extended transition period under the JOBS Act. The adoption dates discussed below reflect this election. In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 , Leases (Topic 842) , and additional changes, modifications, clarifications or interpretations related to this guidance thereafter (“ASU 2016-02”). ASU 2016-02 requires a reporting entity to recognize right-of-use assets and lease liabilities on the balance sheet for operating leases to increase transparency and comparability. ASU 2016-02 is effective for fiscal years beginning after December 15, 2021, including interim periods within that fiscal year, with early adoption permitted. The Company will record a right of use asset and liability, and is currently evaluating the impact of adoption on the consolidated financial statements. Although the Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements and related disclosures, the Company currently expects that most of its operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon adoption. In June 2016, the FASB issued ASU 2016-13, with subsequent amendments, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires immediate recognition of management’s estimates of current expected credit losses. ASU 2016-13 is effective for annual reporting periods beginning after December 15, 2022, and interim periods within that fiscal year, with early adoption permitted. The Company is currently evaluating the impact of adoption on the consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, Debt-Debt with Conversion Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. ASU 2020-06 also improves and amends the related Earnings Per Share guidance for both Subtopics. ASU 2020-06 is part of the FASB’s simplification initiative, which aims to reduce unnecessary complexity in U.S. GAAP. ASU 2020-06 will be effective for annual reporting periods beginning after December 15, 2021. Early adoption is permitted. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Oct. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | The Company derives its revenues primarily from two sources: a. Subscription revenue consists of subscription fees from customers accessing the Company’s cloud based software platform and applications, as well as related customer support services; and b. Professional services revenue consists of fees associated with providing services that educate and assist the Company’s customers with the configuration and optimization of the Company’s software platform and applications. Professional services revenue also includes managed services fees where the Company’s consultants work as part of its customers’ teams to help leverage the subscription service to execute on their customer experience management goals. The Company recognizes revenue upon transfer of control of promised products and services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company determines revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the performance obligation is satisfied Subscription revenue is recognized ratably over the contract term beginning on the commencement date of each contract, which is the date the Company’s service is made available to customers. Subscription revenue includes customer support services, which together with the accessing of the Company’s cloud based software platform, generally constitute a single performance obligation comprised of a series of distinct services that are substantially the same and have the same pattern of revenue recognition. Amounts that have been invoiced because they have the unconditional right to consideration are recorded in accounts receivable and in deferred revenue or revenue, depending on whether the revenue recognition criteria have been met, with the majority being invoiced annually in advance of performance obligations. When determining the transaction price of a contract, an adjustment is made if payment from the customer occurs either significantly before or significantly after performance, resulting in a significant financing component. Applying the practical expedient in Topic 606, the Company does not assess whether a significant financing component exists if the period between when the Company performs its obligations under the contract and when the customer pays is one year or less. One of the Company’s contracts contained a significant financing component as of October 31, 2021 as a result of an advance payment from a large customer for a multi-year contract in the prior fiscal year. None of the Company’s other contracts contained a significant financing component at October 31, 2021. Professional services revenues are recognized as the services are rendered for time and materials contracts or on a proportional performance basis for fixed price contracts. The majority of the Company’s professional services arrangements are fixed price contracts. The Company enters into arrangements where they provide managed services associated with assisting its customers in publishing advertisements on social media channels. As part of those arrangements the Company is occasionally required to purchase advertising space from social media channels on behalf of its customers and invoice those costs back to its customer. Revenue from such arrangements is recognized on a net basis as the Company has determined it is acting as an agent in these transactions. Some of the Company’s product offerings include service-level agreements warranting defined levels of uptime reliability and performance and permitting those customers to receive credits for future services in the event that it fails to meet those levels. To date, the Company has not accrued for any significant liabilities in the accompanying condensed consolidated financial statements as a result of these service-level agreements. For contracts that are modified for changes in contract specification and requirements, the Company analyzes the modification to determine the accounting treatment of the contract modification as a separate contract, prospectively or through a cumulative catch-up adjustment. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Contracts with Multiple Performance Obligations The Company executes arrangements that include multiple performance obligations (consisting of subscription and professional services). Additionally, the Company is often party to multiple concurrent contracts or contracts pursuant to which a client may purchase a combination of services. At contract inception, the Company determines whether multiple contracts will be combined and accounted for as a single arrangement. Combination is generally required when the economics of the individual contracts cannot be understood without reference to the whole. While certain contracts may be combined, they are reviewed to determine if the contract has multiple distinct performance obligations. These situations require judgment to determine whether the multiple promises are separate performance obligations. Once the Company has determined the performance obligations, the Company determines the transaction price. The Company allocates the transaction price to each performance obligation on a relative standalone selling price (“SSP”) basis. The Company then allocates the transaction price to each performance obligation in the contract based on a relative SSP and the corresponding revenues are recognized as the related performance obligations are satisfied. The determination of SSP for each distinct performance obligation requires judgement. The Company rarely sells its enterprise cloud software products and services as readily observable standalone sales, so the Company is required to estimate the SSP for each performance obligation. In the determination of the SSP, the Company uses information that includes contractually stated prices, market conditions, costs, renewal contacts, list prices, internal discounting tables and other observable inputs. In making these judgments, the Company analyzes various factors, including the Company’s pricing methodology and consistency, size of the arrangement, length of term, customer demographics and overall market and economic conditions. Based on these results, the estimated SSP is set for each distinct product or service delivered to customers. Costs to Obtain Customer Contracts Sales commissions and related expenses are considered incremental and recoverable costs of acquiring customer contracts. These costs are capitalized and amortized on a straight-line basis over the anticipated period of benefit, which the Company has estimated to be three years. The Company determined the period of benefit by taking into consideration the length of its customer contracts, customer relationship period, technology lifecycle, and other factors. Sales commissions paid for renewals are not commensurate with commissions paid on the initial contract given the substantive difference in commission rates in proportion to their respective contract values. Amortization expense is recorded in sales and marketing expense within the Company’s condensed consolidated statement of operations. Capitalized costs to obtain customer contracts as of October 31, 2021 were $55.3 million, of which $26.0 million is included in prepaid expenses and other current assets and $29.2 million within other non-current assets. During the three and nine months ended October 31, 2021, the Company amortized $7.3 million and $21.0 million, respectively, of costs to obtain customer contracts, included in sales and marketing expense. Capitalized costs to obtain customer contracts as of October 31, 2020 were $41.5 million, of which $18.0 million is included in prepaid expenses and other current assets and $23.5 million within other non-current assets. During the three and nine months ended October 31, 2020, the Company amortized $5.5 million and $15.3 million, respectively, of costs to obtain customer contracts, included in sales and marketing expense. Deferred Revenue The Company invoices customers for subscriptions to its products in varying billing cycles with the majority being invoiced annually in advance of performance obligations, and accounts receivable are recorded when the right to consideration becomes unconditional. Deferred revenue consists primarily of customer billings made in advance of performance obligations being satisfied and revenue being recognized. The term between invoicing and when payment is due is not significant and the Company generally does not provide financing arrangements to customers. Deferred revenue associated with performance obligations that are anticipated to be satisfied, and thus to be revenue recognized, during the succeeding 12-month period is recorded as current deferred revenue and the remaining portion is recorded as noncurrent deferred revenue. The Company recognized revenue of $104.4 million and $194.0 million for the three and nine months ended October 31, 2021, respectively, and $80.4 million and $158.4 million for the three and nine months ended October 31, 2020, respectively, that was included in the deferred revenue balances at the beginning of the respective periods. The Company receives payments from customers based on billing schedules as established in its contracts. Contract assets represent amounts for which the Company has recognized revenue in excess of billings pursuant to the revenue recognition guidance. At October 31, 2021 and January 31, 2021, contract assets were $2.6 million and $0.8 million, respectively, and were included in prepaid expenses and other current assets. Remaining performance obligations represent contracted revenues that had not yet been recognized and include deferred revenues and amounts that will be invoiced and recognized in future periods. As of October 31, 2021, the Company’s remaining performance obligations were $459.4 million, approximately $329.6 million of which the Company expects to recognize as revenue over the next 12 months and the remaining balance will be recognized thereafter. Disaggregation of Revenues The Company disaggregates its revenue from contracts with customers by geographic location and market, as it believes it best depicts how the nature, amount, timing, and uncertainty of its revenues and cash flows are affected by economic factors. Refer to Note 14, Geographic Information, for revenue by geographic location. |
Marketable Securities
Marketable Securities | 9 Months Ended |
Oct. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Marketable Securities The following is a summary of available-for-sale marketable securities, excluding those securities classified within cash and cash equivalents on the condensed consolidated balance sheets (in thousands): October 31, 2021 Amortized Cost Unrealized Gain Unrealized Losses Fair value Corporate bonds $ 5,116 $ — $ (4) $ 5,112 U.S. government and agency securities 13,999 — — 13,999 Marketable securities $ 19,115 $ — $ (4) $ 19,111 January 31, 2021 Amortized Cost Unrealized Gain Unrealized Losses Fair value Corporate bonds $ 26,894 $ — $ (2) $ 26,892 U.S. government and agency securities 125,804 20 — 125,824 Commercial paper 59,936 — — 59,936 Marketable securities $ 212,634 $ 20 $ (2) $ 212,652 As of October 31, 2021 and January 31, 2021, the maturities of available-for-sale marketable securities did not exceed 12 months. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables present information about the Company’s financial assets and liabilities that have been measured at fair value on a recurring basis as of October 31, 2021, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): Level 1 Level 2 Level 3 Total Financial Assets: Cash Equivalents: Money market funds $ 483,130 $ — $ — $ 483,130 Marketable Securities: Corporate bonds — 5,112 — 5,112 U.S. government and agency securities — 13,999 — 13,999 Total financial assets $ 483,130 $ 19,111 $ — $ 502,241 The following table represents the fair value hierarchy for the Company’s assets measured at fair value on a recurring basis as of January 31, 2021 (in thousands): Level 1 Level 2 Level 3 Total Financial Assets: Cash Equivalents: Money market funds $ 37,451 $ — $ — $ 37,451 Marketable Securities: Corporate bonds — 26,892 — 26,892 U.S. government and agency securities — 125,824 — 125,824 Commercial paper — 59,936 — 59,936 Total financial assets $ 37,451 $ 212,652 $ — $ 250,103 The Company classifies its highly liquid money market funds within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company classifies its commercial paper, corporate debt securities, U.S. government agencies, certificates of deposit, and U.S. government treasury securities within Level 2 because they are valued using inputs other than quoted prices that are directly or indirectly observable in the market, including readily available pricing sources for the identical underlying security which may not be actively traded. The Company’s primary objective when investing excess cash is preservation of capital, hence the Company’s marketable securities consist primarily of U.S. Treasury securities, high credit quality corporate debt securities and commercial paper. The Company has classified and accounted for its marketable securities as available-for-sale securities as it may sell these securities at any time for use in the Company’s current operations or for other purposes, even prior to maturity. As of October 31, 2021 and January 31, 2021, for fixed income securities that were in unrealized loss positions, the Company has determined that (i) it does not have the intent to sell any of these investments and (ii) it is not more likely than not that it will be required to sell any of these investments before recovery of the entire amortized cost basis. In addition, as of October 31, 2021 and January 31, 2021, the Company anticipates that it will recover the entire amortized cost basis of such fixed income securities before maturity. |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Oct. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Balance Sheet Components | Balance Sheet Components Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): October 31, January 31, Prepaid hosting and data costs $ 35,881 $ 58,386 Prepaid software costs 2,688 3,771 Capitalized commissions costs, current portion 26,044 24,294 Prepaid insurance 3,495 289 Contract assets 2,628 824 Other 26,071 8,255 Prepaid expenses and other current assets $ 96,807 $ 95,819 Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): October 31, January 31, Computer equipment $ 12,658 $ 7,921 Office furniture and other 1,222 1,193 Leasehold improvements 3,664 3,500 Less accumulated depreciation and amortization (11,235) (8,598) Total fixed assets, net 6,309 4,016 Capitalized internal-use software 20,725 16,224 Less accumulated amortization (13,593) (11,229) Total capitalized internal-use software 7,132 4,995 Property and equipment, net $ 13,441 $ 9,011 Depreciation and amortization expense for property and equipment was $1.2 million and $0.7 million in the three months ended October 31, 2021 and 2020, respectively, and $3.0 million and $1.8 million in the nine months ended October 31, 2021 and 2020, respectively. Amortization expense for capitalized internal-use software was $0.9 million and $0.6 million in the three months ended October 31, 2021 and 2020, respectively, and $2.4 million and $1.9 million in the nine months ended October 31, 2021 and 2020, respectively. The Company capitalized internal-use software costs, including stock-based compensation, of $1.9 million and $1.0 million in the three months ended October 31, 2021 and 2020, respectively, and $4.6 million and $2.5 million in the nine months ended October 31, 2021 and 2020, respectively. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): October 31, January 31, Bonuses $ 15,320 $ 17,783 Commissions 11,895 13,346 Employee liabilities (1) 23,691 15,040 Purchased media costs (2) 4,559 2,695 Accrued sales and use tax liability 5,722 5,667 Accrued income taxes 3,354 677 Professional services 2,012 1,603 Other 11,681 6,359 $ 78,234 $ 63,170 (1) Includes $5.7 million of accrued ESPP employee contributions at October 31, 2021. Refer to Note 11, Stock-based Compensation, for further discussion of the Company’s ESPP. (2) Purchased media costs consist of amounts owed to the Company’s vendors for the purchase of advertising space on behalf of its customers. |
Goodwill
Goodwill | 9 Months Ended |
Oct. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The changes in the carrying amount of goodwill for the periods presented were as follows (in thousands): October 31, January 31, Balance at beginning of period $ 46,823 $ 47,100 Business combination 3,023 — Effect of exchange rates 5 (277) Balance at end of period $ 49,851 $ 46,823 |
Debt
Debt | 9 Months Ended |
Oct. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes the Company’s long-term debt at January 31, 2021 (in thousands): January 31, Senior Subordinated Secured Convertible Note $ 75,000 Paid-in-kind interest 5,390 Principal balance 80,390 Less: Unamortized debt discounts and issuance costs (1,542) Revolving credit facility — Total Debt $ 78,848 There was no long-term debt outstanding as of October 31, 2021. Senior Subordinated Secured Convertible Notes On May 20, 2020 (the “NPA Closing Date”), the Company issued senior subordinated convertible notes for an aggregate principal amount of $75 million pursuant to the Company’s Senior Subordinated Secured Convertible Note Purchase Agreement, dated May 20, 2020, by and among the Company, its subsidiaries, TPG Specialty Lending Inc., as Administrative Agent and Arranger (“TPG”), and certain other investor parties (the “Note Purchase Agreement”), with an initial maturity date of May 20, 2025 (the “Notes”). The Notes were issued for face amount net of a closing fee of 1.05% on the entire $150 million commitment for all Notes (corresponding to an original issue discount of 2.1% on the Notes) and carried a fixed rate of 9.875% per annum. The interest was paid-in-kind by increasing the principal amount of the Notes. The Notes were sold at a price and had a value at issuance not significantly in excess of the face amount; accordingly, none of the proceeds were allocated to equity. Upon the completion of the IPO, the Notes automatically converted pursuant to their terms into 9,694,004 shares of Class B common stock. Interest Expense The following table presents the components of interest expense incurred on the Notes for the three and nine months ended October 31, 2021 (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 Interest expense at coupon rate $ — $ 1,930 $ 3,182 $ 3,411 Amortization of debt discounts and issuance costs — 47 84 83 Total interest expense $ — $ 1,977 $ 3,266 $ 3,494 The debt discount was amortized to interest expense at an annual effective interest rate of 10.3% over the contractual terms of the Notes. Interest expense is included in Other expense, net on the condensed consolidated statement of operations. Credit Agreement |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases The Company leases certain office facilities under operating lease arrangements that expire on various dates through 2024. Under the terms of the leases, the Company is responsible for certain operating expenses, such as insurance, property taxes, and maintenance expenses. Rent expense for non-cancelable operating leases with scheduled rent increases is recognized on a straight-line basis over the terms of the leases. Deferred rent as of October 31, 2021 was $2.4 million, $1.3 million of which was recorded in Accrued expenses and other current liabilities and $1.1 million of which was recorded in Other liabilities, long-term in the condensed consolidated balance sheets. Deferred rent as of January 31, 2021 was $2.2 million, $1.3 million of which was recorded in Accrued expenses and other current liabilities and $0.9 million of which was recorded in Other liabilities, long-term in the condensed consolidated balance sheets. Rent expense under these operating leases was $2.2 million and $1.7 million in the three months ended October 31, 2021 and 2020, respectively, and $5.5 million and $5.2 million in the nine months ended October 31, 2021 and 2020, respectively. At October 31, 2021 and January 31, 2021, the Company had no capital leases. As of October 31, 2021, future minimum lease payments under non-cancelable operating leases were as follows (in thousands): October 31, 2021 2022 (remaining three months) $ 1,981 2023 7,585 2024 5,639 2025 2,427 2026 and thereafter 2,660 Total $ 20,292 Letters of Credit As of October 31, 2021, the Company has an aggregate availability of $1.3 million under letters of credit primarily related to one of its leases. The Company has not drawn down on these letters of credit as of October 31, 2021. No material letters of credit were outstanding as of January 31, 2021. Contractual Obligations and Commitments The Company has non-cancelable minimum guaranteed purchase commitments for data and hosting services as of January 31, 2021 as follows (in thousands): Fiscal year ended January 31, 2022 $ 17,859 2023 28,743 2024 62,792 2025 52,833 2026 and thereafter 51,500 Total $ 213,727 There were no material contractual obligations or commitments that were entered into during the nine months ended October 31, 2021 that were outside the ordinary course of business. Legal Matters From time to time, the Company, various subsidiaries, and certain current and former officers may be named as defendants in various lawsuits, claims, investigations and proceedings arising from the normal course of business. The Company also may become involved with contract issues and disputes with customers. With respect to litigation in general, based on the Company’s experience, management believes that the amount of damages claimed in a case are not a meaningful indicator of the potential liability. Claims, suits, investigations and proceedings are inherently uncertain and it is not possible to predict the ultimate outcome of cases. The Company believes that it has valid defenses with respect to the legal matters pending against the Company and intends to vigorously contest each of them. The Company makes a provision for a liability relating to legal matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. In management’s opinion, resolution of all current matters is not expected to have a material adverse impact on the Company’s condensed consolidated results of operations, cash flows or financial position. However, if an unfavorable ruling were to occur in any specific period, there exists the possibility of a material adverse impact on the results of operations for that period. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Oct. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock In connection with the IPO, on June 25, 2021, the Company filed an Amended and Restated Certificate of Incorporation that authorizes the issuance of 2,000,000,000 shares of Class A common stock with a par value of $0.00003 per share, 310,000,000 shares of Class B common stock with a par value of $0.00003 per share, and 20,000,000 shares of undesignated preferred stock with a par value of $0.00003 per share. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting and conversion rights. Each share of Class A common stock is entitled to one vote per share. Each share of Class B common stock is entitled to ten votes per share and is convertible into one share of Class A common stock. Subject to preferences that may apply to any shares of preferred stock outstanding at the time, the holders of Class A common stock and Class B common stock will be entitled to share equally, identically and ratably, on a per share basis, with respect to any dividend or distribution of cash or property paid or distributed by the company, unless different treatment of the shares of the affected class is approved by the affirmative vote of the holders of a majority of the outstanding shares of such affected class, voting separately as a class. Convertible Preferred Stock In October 2020, the Company closed on a private placement and issuance of 10.8 million shares of its Series G-1 convertible preferred stock, or the Series G-1, at a price per share of $9.25 and 9.1 million shares of its Series G-2 convertible preferred stock, or the Series G-2, at a price per share of $11.00 for total gross proceeds of $200.0 million (collectively, Series G), before deducting placement agent fees, offering expenses and issued warrants. Compared to Series G-1, Series G-2 include, among other provisions, certain protective provisions not available to the holders of Series G-1. Upon the completion of the Company’s IPO, all of the then-outstanding shares of convertible preferred stock were automatically converted into an aggregate of 120,902,273 of shares of Class B common stock on a one-to-one basis and the carrying value was reclassified into Class B common stock and additional paid-in capital on the condensed consolidated balance sheet. Common Stock Warrants In fiscal year 2021, the Company issued warrants allowing the holders of both the Series G-1 and Series G-2 preferred stock to purchase up to 2.5 million shares of common stock for $10.00 per share. The warrants expire on October 7, 2025. The Company recognized the fair value of the warrants of $7.6 million as additional-paid-in capital using the Black-Scholes option pricing model and an equivalent discount that reduced the carrying value of the Series G-1 and Series G-2 preferred stock to $95.9 million and $95.9 million, respectively. During 2012, the Company issued fully vested warrants to purchase 231,000 shares of common stock at an exercise price of $0.08 to SVB as part of a loan agreement. On June 29, 2021, 230,259 shares of Class B common stock were issued upon the cashless exercise of these common stock warrants. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Oct. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Equity Incentive Plans The Sprinklr, Inc. 2011 Equity Incentive Plan (the “2011 Plan”) provided certain equity grants to the Company’s employees, directors, consultants and service providers. The 2011 Plan was terminated as to future awards in June 2021 upon the adoption of the Sprinklr, Inc. 2021 Equity Incentive Plan (the “2021 Plan”), although it continues to govern the terms of any equity grants that remain outstanding under the 2011 Plan. The Company’s board of directors adopted the 2021 Plan in May 2021, which was subsequently approved by its stockholders and became effective on June 22, 2021. Initially, the maximum number of shares of the Company’s Class A common stock that may be issued under the 2021 Plan is 80,401,680 shares, which includes (i) 25,480,000 new shares of Class A common stock and (ii) shares subject to outstanding awards granted under the 2011 Plan that expire or otherwise terminate or that are not issued or are otherwise reacquired by the Company under certain circumstances. The 2021 Plan provides that the number of shares reserved and available for issuance under the 2021 Plan will automatically increase each January 1, beginning on January 1, 2022 and ending on (and including) January 1, 2031, by an amount equal to 5% of the number of our Class A and Class B common stock outstanding on the immediately preceding December 31 or such lesser number of shares as determined by the Company’s board of directors. As of October 31, 2021, there were 26,138,684 shares available for grant under the 2021 Plan. The 2021 Plan provides for the grant of incentive stock options (“ISOs ” ), non-statutory stock options (“NSOs ” ), stock appreciation rights, restricted stock awards, RSU awards, performance awards and other forms of awards to employees, directors and consultants, including employees and consultants of the Company's affiliates, as permitted by law. Performance Share Units On January 28, 2021, the Company granted 3,100,000 shares of PSUs that vest over a five-year period if certain performance conditions are met. Following an IPO, the PSUs will vest on the date on which the volume weighted-average trading price of the Company's Class A common stock has, for 45 consecutive trading days, equaled or exceeded pre-determined threshold prices ranging between $30 and $100, or upon a change in control of the Company. If the first threshold of $30 is not met, then no shares will vest. Each PSU is equal to and paid in one share of Class B common stock. The number of shares actually issued will range from zero to 3,100,000 shares in the aggregate. To determine the fair value of the PSUs, the Company utilized a Monte Carlo simulation, a computational algorithm which allows us to model the impact of one or more, often uncertain, variables on the value of complex securities and evaluate many possible outcomes to forecast the stock price of the Company. As part of the valuation, the Company considered various scenarios related to the pricing, timing and probability of an IPO. The Company applied an annual equity volatility of 40.0%, a risk-free rate of 0.42%, fair value of common stock of $9.07 and an expected term of five years to arrive at a valuation of $3.5 million on the grant date. The performance-based vesting condition was satisfied on the effective date of a registration statement of the Company filed under the Securities Act for the sale of the Company's common stock. Such event was not deemed probable until consummated, and therefore, stock-based compensation related to these PSUs remained unrecognized prior to the effectiveness of Registration Statement. Upon the effectiveness of the Registration Statement on June 22, 2021, the performance-based vesting condition was satisfied, and therefore, the Company recognized cumulative stock-based compensation expense of $0.4 million using the accelerated attribution method for the portion of the PSU awards for which the service-based vesting condition has been partially satisfied. Chief Executive Officer Stock Option Agreement On March 18, 2019, the Company granted options to purchase 9,274,528 shares of common stock to its Chief Executive Officer. The grant is split into four tranches, each covering 2,318,632 shares of common stock. Tranche 1 vests over three years. Tranches 2, 3 and 4 are performance based, with tranche 2 vesting upon an IPO or change of control and tranches 3 and 4 vesting in the event of both (i) an IPO or change of control and (ii) the Company’s share price equaling or exceeding a certain value at or after the occurrence of an IPO or change of control. For the 6,955,896 options that are subject to the performance conditions that are triggered upon IPO or a change of control, stock-based compensation expense remained unrecognized prior to the effectiveness of the IPO. On June 25, 2021, the performance-based vesting condition was satisfied and 2,318,632 options under tranche 2 vested and the Company recognized cumulative stock-based compensation expense of $5.8 million using the accelerated attribution method for the portion of the PSU awards for which the service-based vesting condition has been fully or partially satisfied. The remaining $0.1 million associated with tranches 3 and 4 will be recognized through the subsequent remaining requisite service period, or March 24, 2022. To determine the fair value of stock options that include market conditions (tranche 3 and 4), the Company utilized a Monte Carlo simulation, which allows for the modeling of complex securities and evaluate many possible outcomes to forecast the stock price of the Company post-IPO. As part of the valuation, the Company considered various scenarios related to the pricing, timing and probability of an IPO. The Company applied an annual equity volatility of 44%, a risk-free rate of 2.6%, fair value of the common stock of $4.25 and an expected term of ten years to arrive at a valuation of $1.7 million on the grant date. Summary of Stock Option Activity A summary of the Company’s stock option activity for the Plan for the nine months ended October 31, 2021 is as follows: Number of stock options outstanding Weighted average exercise price Weighted average remaining contractual life Aggregate intrinsic value (in thousands) (in years) (in thousands) Balance as of January 31, 2021 46,455 4.37 7.7 $ 218,450 Granted 10,641 11.43 Exercised (8,882) 2.02 Cancelled/forfeited (2,447) 8.34 Balance as of October 31, 2021 45,767 6.25 8.0 $ 597,167 Exercisable as of October 31, 2021 16,433 $ 4.28 7.1 $ 246,801 Vested and expected to vest as of October 31, 2021 37,577 $ 5.76 7.8 $ 508,972 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the Company’s share price of $19.30 as of October 31, 2021 for options that were in-the-money as of that date. The weighted-average grant date fair value of options granted and the total intrinsic value of options exercised during the periods presented were as follows: Nine Months Ended October 31, 2021 2020 Weighted average grant date fair value of options granted $ 5.58 $ 2.51 Total intrinsic value of options exercised (in thousands) $ 77,760 $ 43,201 The total estimated grant date fair value of options vested in the nine months ended October 31, 2021 and 2020 was $19.8 million and $11.1 million, respectively. Determining Fair Value of Stock Options The fair value of each option grant with service and performance conditions is estimated on the date of grant using the Black-Scholes option valuation model. The following assumptions were used to estimate the fair value of options granted to employees: Nine Months Ended October 31, 2021 2020 Expected term (in years) 6.0 6.0 Risk-free interest rate 0.9% - 1.4% 0.3% - 0.8% Expected volatility 50.9% - 52.1% 42.3% - 45.5% Expected dividend rate 0% 0% Fair value of common stock $10.96 - $14.02 $4.93 - $7.38 The assumptions were based on the following for each of the periods presented: Expected term —The expected term represents the period that the Company’s stock-based awards are expected to be outstanding. As all of the Company’s option grants are considered to be “plain vanilla,” the Company determined the expected term using the simplified method. The simplified method calculates the expected term as the average of the time-to-vesting and contractual terms of the stock-based award. Risk-free interest rate —The risk-free interest rate is based on U.S. Treasury zero coupon issues with remaining terms similar to the expected term on the options. Expected volatility —Because the Company has limited trading history by which to determine the volatility of its own common stock price, the expected volatility being used is derived from the historical stock volatilities of a representative industry peer group of comparable publicly listed companies over a period approximately equal to the expected term of the options. Expected dividend rate —The Company has never declared or paid cash dividends on its capital stock and does not anticipate paying any cash dividends in the foreseeable future, and, therefore, used an expected dividend yield of zero in the valuation model. Fair value of common stock – Prior to the IPO, the fair value of common stock underlying the stock options had historically been determined by the Company’s board of directors, with input from the Company’s management. The Company’s board of directors previously determined the fair value of the common stock at the time of grant of the options by considering a number of objective and subjective factors, including valuations of comparable companies, sales of common stock to unrelated third parties, operating and financial performance, the lack of liquidity of the Company’s capital stock, and general and industry-specific economic outlook. Subsequent to the IPO, the fair value of the underlying common stock is determined by the closing price, on the date of grant, of the Company’s Class A common stock, which is traded publicly on the New York Stock Exchange. Forfeiture Rate - The Company estimates forfeitures at the time of grant and revises those estimates in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting forfeitures and records stock-based compensation expense only for those awards that are expected to vest. All service-based stock-based payment awards are amortized on a straight-line basis over the requisite service periods of the awards, which are generally the vesting periods. Restricted Stock Units A summary of the Company’s RSU award activity was as follows: Number of restricted shares outstanding Weighted Average Grant Date Fair Value (in thousands) Balance as of January 31, 2021 450 $ 7.26 Granted 465 17.74 Released (150) 3.64 Balance as of October 31, 2021 765 $ 14.34 On January 28, 2021, the Company granted 300,000 RSUs that have vesting conditions, including the completion of an IPO or change in control event, and the achievement of a service condition. The service condition is a time-based condition met over a period of five years, with 20% met after one year and then equal quarterly installments over the succeeding four years. The performance-based vesting condition is satisfied on the effective date of a registration statement of the Company filed under the Securities Act for the sale of the Company’s common stock. Such event was not deemed probable until consummated, and therefore, stock-based compensation related to these RSUs remained unrecognized prior to the effectiveness of the Registration Statement. Upon the effectiveness of the Registration Statement on June 22, 2021, the performance-based vesting condition was satisfied, and, therefore, the Company recognized cumulative stock-based compensation expense of $0.6 million using the accelerated attribution method for the portion of the RSU awards for which the service-based vesting condition has been partially satisfied. Employee Stock Purchase Plan The Company’s board of directors adopted the 2021 Employee Stock Purchase Plan (“ESPP”) on May 20, 2021, which was subsequently approved by its stockholders and became effective on June 22, 2021. The ESPP authorizes the initial issuance of up to 5,100,000 shares of the Company’s Class A common stock to certain eligible employees or, as designated by the board of directors, employees of a related company. The ESPP provides that the number of shares of Class A common stock reserved and available for issuance under the ESPP will automatically increase each January 1, beginning on January 1, 2022 and ending on (and including) January 1, 2031, by an amount equal to the lesser of (i) 1% of the outstanding number of shares of common stock on the immediately preceding December 31 and (ii) 15,300,000, or such lesser number of shares as determined by the Company’s board of directors. The ESPP includes two components. One component is designed to allow eligible U.S. employees to purchase our Class A common stock in a manner that may qualify for favorable tax treatment under Section 423 of the Internal Revenue Code of 1986, as amended. The other component permits the grant of purchase rights that do not qualify for such favorable tax treatment in order to allow deviations necessary to permit participation by eligible employees who are foreign nationals or employed outside of the United States while complying with applicable foreign laws. The ESPP provides eligible employees with an opportunity to purchase shares of the Company’s Class A common stock through payroll deductions of up to 15% of their eligible compensation. A participant may purchase a maximum of 5,000 shares of common stock during a purchase period. Amounts deducted and accumulated by the participant are used to purchase shares of common stock at the end of each six-month purchase period. The purchase price of the shares shall be 85% of the lower of the fair market value of the Class A common stock on (i) the first trading day of the applicable offering period and (ii) the last trading day of each purchase period in the related offering period. Participants may end their participation at any time during an offering period and will be paid their accrued contributions that have not yet been used to purchase shares of common stock. Participation ends automatically upon termination of employment. The ESPP provides for consecutive offering periods that will typically have a duration of approximately 12 months in length and is comprised of two purchase periods of approximately six months in length. The offering periods are scheduled to start on the first trading day on or after June 15 and December 15 of each year. The first offering period commenced on June 23, 2021 and is scheduled to end on the first trading day on or before June 15, 2022. ESPP employee payroll contributions accrued as of October 31, 2021 totaled $5.7 million and are included within accrued compensation in the condensed consolidated balance sheet. Employee payroll contributions ultimately used to purchase shares will be reclassified to stockholders’ equity on the purchase date. The Company recorded stock-based compensation of $3.0 million and $3.9 million during the three and nine months ended October 31, 2021, respectively, in connection with the ESPP. The fair value of the share purchase rights granted under the ESPP during the nine months ended October 31, 2021 was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: Nine Months Ended October 31, 2021 Expected term (in years) 0.9 Risk-free interest rate 0.05% - 0.08% Expected volatility 55.70% - 57.00% Expected dividend rate 0% Fair value of common stock $22.37 Deferred Stock Compensation Plan In May 2020, the Company implemented a program that provides eligible employees the opportunity, through regular payroll deductions, to purchase shares of the Company's common stock worth between 10% to 25% of the employee's salary as elected by the participant, subject to certain caps set forth under the program. Employees may purchase shares of the Company’s common stock at the lower of the fair value of the common stock at the beginning or ending date of the purchase period, which commenced on June 1, 2020 and concluded on June 1, 2021. Receipt of common stock under this program was contingent on continued employment through June 1, 2021. This share-settled obligation was recognized in June 2021, at which point the employees were granted shares under this program. In determining the fair value of the right to purchase under this program, the Company used the Monte-Carlo simulation and applied an annual equity volatility of 48.2%, a risk-free rate of 0.17%, fair value of the common stock of $4.93 and an expected term of one year to arrive at a valuation of $1.9 million for the put right, resulting in a grant date fair value of $5.86. The Company recognized $3.2 million of stock-based compensation expense in the nine months ended October 31, 2021 related to shares issuable pursuant to this program. On June 7, 2021, the Company issued 1,769,945 shares in connection with this program based on the fair value of the common stock at the beginning of the purchase period. Stock-Based Compensation Expense Stock-based compensation expense included in operating results was allocated as follows (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 Costs of subscription $ 589 $ 338 $ 1,411 $ 856 Costs of professional services 889 422 1,911 876 Research and development 2,186 1,823 4,915 2,910 Sales and marketing 4,997 4,889 13,963 8,994 General and administrative 3,760 15,834 15,753 19,077 Stock-based compensation, net of amounts capitalized 12,421 23,306 37,953 32,713 Capitalized stock-based compensation 232 — 465 — Total stock-based compensation $ 12,653 $ 23,306 $ 38,418 $ 32,713 Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 Equity classified awards $ 12,403 $ 23,056 $ 37,668 $ 32,047 Other awards (1) 250 250 750 666 $ 12,653 $ 23,306 $ 38,418 $ 32,713 (1) Nonemployee grant recorded over five years, representing the same period and in the same manner as if the grantor had paid cash for the services instead of paying with or using the share-based payment award. As of October 31, 2021, total unrecognized compensation cost related to unvested awards not yet recognized under all equity compensation plans, adjusted for estimated forfeitures, was as follows: October 31, 2021 Unrecognized expense Weighted average expense recognition period (in thousands) (in years) Stock options $ 49,577 2.9 Performance share units 2,963 3.3 Restricted stock units 5,975 3.1 ESPP 8,447 0.6 |
Net (Loss) Income Per Share
Net (Loss) Income Per Share | 9 Months Ended |
Oct. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income Per Share | Net Loss Per Share The Company computes net loss per share using the two-class method required for participating securities. The two-class method requires income available to ordinary shareholders for the period to be allocated between ordinary shares and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. The Company considers its convertible preferred shares to be participating securities, as the holders of the convertible preferred shares would be entitled to dividends that would be distributed to the holders of ordinary shares on a pro-rata basis assuming conversion of all convertible preferred shares into ordinary shares. These participating securities do not contractually require the holders of such shares to participate in the Company’s losses. As such, net loss was not allocated to the Company’s participating securities. Basic loss per share is computed by dividing net loss attributable to common shareholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) for the period. In periods when the Company has income, the Company calculates basic earnings per share using the two-class method, if required, pursuant to ASC 260, Earnings Per Share. The two-class method was required effective with the issuance of convertible preferred stock in the past because this class of stock qualified as a participating security, giving the holder the right to receive dividends should dividends be declared on common stock. Under the two-class method, earnings for a period are allocated on a pro rata basis to the common stockholders and to the holders of convertible preferred stock based on the weighted average number of common shares outstanding and number of shares that could be issued upon conversion. In periods of losses, diluted loss per share is computed on the same basis as basic loss per share as the inclusion of any other potential shares outstanding would be anti-dilutive. Following the Company’s IPO, the Company has two classes of common stock: Class A common stock and Class B common stock. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting, conversion and transfer rights. All shares of the Company’s capital stock outstanding immediately prior to the Company’s IPO, including all shares held by executive officers, directors and their respective affiliates, and all shares issuable on the conversion of outstanding convertible preferred stock, were converted into shares of the Company’s Class B common stock immediately prior to the completion of the offering. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis to each class of common stock and the resulting basic and diluted net loss per share attributable to common stockholders are, therefore, the same for both Class A and Class B common stock on both individual and combined basis. The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share amounts): Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 Net loss per share - basic and diluted: Numerator: Net loss attributable to Class A and $ (29,231) $ (18,968) $ (77,175) $ (27,166) Denominator: Weighted-average shares outstanding used in computing net loss per share attributable to Class A and Class B common stockholders - basic and diluted 255,195 91,672 174,497 88,428 Net loss per common share attributable to Class A and Class B common stockholders - basic and diluted $ (0.11) $ (0.21) $ (0.44) $ (0.31) Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows (in thousands): 2021 2020 Convertible Preferred Stock — 122,310 Options to purchase common stock 45,767 44,251 Convertible note — 8,294 Performance share units 3,175 — Restricted stock units 765 150 ESPP 293 — Deferred stock compensation plan — 759 Warrants to purchase common stock 2,500 2,731 Total shares excluded from net (loss) income per share 52,500 178,495 |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company computes its year-to-date provision for income taxes by applying the estimated annual effective tax rate to year-to-date pretax income or loss and adjusts the provision for discrete tax items recorded in the period. During the three months ended October 31, 2021 and 2020, the Company recorded an income tax expense of $1.8 million and $1.1 million, respectively, and income tax expense of $6.1 million and $2.9 million in the nine months ended October 31, 2021 and 2020, respectively. The Company’s effective tax rate generally differs from the U.S. federal statutory tax rate primarily due to a full valuation allowance related to the Company’s U.S. deferred tax assets, partially offset by state taxes and the foreign tax rate differential on non-U.S. income. The Company regularly evaluates the realizability of its deferred tax assets and establishes a valuation allowance if it is more likely than not that some or all the deferred tax assets will not be realized. In making such a determination, the Company considers all available positive and negative evidence. As of October 31, 2021, the Company continues to maintain a full valuation allowance against the deferred tax assets for the U.S. and certain international entities. During the nine months ended October 31, 2021, the Company recorded a $1.3 million reserve related to unrecognized tax benefits. |
Geographic Information
Geographic Information | 9 Months Ended |
Oct. 31, 2021 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information The Company operates in one segment. The Company’s products and services are sold throughout the world. The Company’s chief operating decision maker (the “CODM”) is the chief executive officer. The CODM makes operating performance assessment and resource allocation decisions on a global basis. The CODM does not receive discrete financial information about asset allocation, expense allocation or profitability by product or geography. The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use the cloud - based software platform (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 Americas $ 80,333 $ 63,242 $ 226,573 $ 186,515 EMEA 35,406 24,737 99,838 71,682 Other 11,317 8,353 30,317 24,621 $ 127,056 $ 96,332 $ 356,728 $ 282,818 The United States was the only country that represented more than 10% of the Company’s revenues in the three months ended October 31, 2021 and 2020 and the nine months ended October 31, 2021 and 2020, respectively, comprising of $75.4 million, $59.6 million, $212.3 million and $176.4 million, respectively. Long-lived assets by geographical region are based on the location of the legal entity that owns the assets. As of October 31, 2021 and January 31, 2021, long lived assets by geographic region were as follows (in thousands): October 31, January 31, Americas (1) $ 9,237 $ 6,135 EMEA 1,825 1,474 Other 2,379 1,402 $ 13,441 $ 9,011 (1) Includes $9.0 million and $6.0 million of fixed assets held in the United States at October 31, 2021 and January 31, 2021, respectively. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America, (“U.S. GAAP”), and applicable rules and regulations of the Securities and Exchange Commission, (“SEC”), regarding interim financial reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP have been condensed or omitted, and accordingly the balance sheet as of January 31, 2021, and related disclosures, have been derived from the audited consolidated financial statements at that date but do not include all of the information required by U.S. GAAP for complete consolidated financial statements. These unaudited condensed consolidated financial statements have been prepared on the same basis as the Company’s annual consolidated financial statements and, in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for the fair presentation of the Company’s condensed consolidated financial information. The results of operations for the three and nine months ended October 31, 2021 are not necessarily indicative of the results to be expected for the year ending January 31, 2022 or for any other interim period or for any other future year. The accompanying interim unaudited condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto for the year ended January 31, 2021 included in the Company’s final prospectus (“Final Prospectus”) that forms a part of the Registration Statement on Form S-1 (File No. 333-256657) (the “Registration Statement”) for its IPO, dated as of June 22, 2021, and filed with the SEC pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended (the “Securities Act”) on June 24, 2021. |
Use of Estimates | Use of EstimatesThe preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and 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. Significant estimates and assumptions made in the accompanying consolidated financial statements include, but are not limited to, common stock valuations and stock-based compensation expense, software costs eligible for capitalization, recoverability of long-lived and intangible assets and the allowance for doubtful accounts. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and on assumptions that it believes are reasonable and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates and assumptions. |
Fiscal Year | Fiscal YearThe Company’s fiscal year ends on January 31. References to fiscal year 2022, for example, refer to the fiscal year ending January 31, 2022. |
Segments | SegmentsThe Company operates in one operating segment because the Company’s offerings operate on its single Customer Experience Management Platform, the Company’s products are deployed in a similar way, and the Company’s chief operating decision maker evaluates the Company’s financial information and assesses the performance of the Company on a consolidated basis. Because the Company operates in one operating segment, all required financial segment information can be found in the consolidated financial statements. |
Concentration of Risk and Significant Customers | Concentration of Risk and Significant Customers The Company has no significant off-balance sheet risks related to foreign currency exchange contracts, option contracts or other foreign currency hedging arrangements. The Company’s financial instruments that are potentially subject to credit risk consist primarily of cash and cash equivalents and accounts receivable. Although the Company deposits its cash with multiple financial institutions, its deposits generally exceed federally insured limits. The Company’s accounts receivable are derived from invoiced customers located primarily in North America and Europe. The Company performs periodic credit evaluations of its customers and generally does not require collateral. No single customer accounted for more than 10% of total revenue in the three or nine months ended October 31, 2021. In addition, the Company relies upon third-party hosted infrastructure partners globally to serve customers and operate certain aspects of its services, such as environments for development testing, training, sales demonstrations, and production usage. Given this, any disruption of or interference at the Company's hosted infrastructure partners would impact the Company’s operations and its business could be adversely impacted. |
Revenue Recognition | Revenue Recognition The Company accounts for revenue in accordance with Accounting Standard Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (ASC 606) The Company derives its revenues primarily from two sources: a. Subscription revenue consists of subscription fees from customers accessing the Company’s cloud based software platform and applications, as well as related customer support services; and b. Professional services revenue consists of fees associated with providing services that educate and assist the Company’s customers with the configuration and optimization of the Company’s software platform and applications. Professional services revenue also includes managed services fees where the Company’s consultants work as part of its customers’ teams to help leverage the subscription service to execute on their customer experience management goals. The Company recognizes revenue upon transfer of control of promised products and services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company determines revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the performance obligation is satisfied Subscription revenue is recognized ratably over the contract term beginning on the commencement date of each contract, which is the date the Company’s service is made available to customers. Subscription revenue includes customer support services, which together with the accessing of the Company’s cloud based software platform, generally constitute a single performance obligation comprised of a series of distinct services that are substantially the same and have the same pattern of revenue recognition. Amounts that have been invoiced because they have the unconditional right to consideration are recorded in accounts receivable and in deferred revenue or revenue, depending on whether the revenue recognition criteria have been met, with the majority being invoiced annually in advance of performance obligations. When determining the transaction price of a contract, an adjustment is made if payment from the customer occurs either significantly before or significantly after performance, resulting in a significant financing component. Applying the practical expedient in Topic 606, the Company does not assess whether a significant financing component exists if the period between when the Company performs its obligations under the contract and when the customer pays is one year or less. One of the Company’s contracts contained a significant financing component as of October 31, 2021 as a result of an advance payment from a large customer for a multi-year contract in the prior fiscal year. None of the Company’s other contracts contained a significant financing component at October 31, 2021. Professional services revenues are recognized as the services are rendered for time and materials contracts or on a proportional performance basis for fixed price contracts. The majority of the Company’s professional services arrangements are fixed price contracts. The Company enters into arrangements where they provide managed services associated with assisting its customers in publishing advertisements on social media channels. As part of those arrangements the Company is occasionally required to purchase advertising space from social media channels on behalf of its customers and invoice those costs back to its customer. Revenue from such arrangements is recognized on a net basis as the Company has determined it is acting as an agent in these transactions. Some of the Company’s product offerings include service-level agreements warranting defined levels of uptime reliability and performance and permitting those customers to receive credits for future services in the event that it fails to meet those levels. To date, the Company has not accrued for any significant liabilities in the accompanying condensed consolidated financial statements as a result of these service-level agreements. For contracts that are modified for changes in contract specification and requirements, the Company analyzes the modification to determine the accounting treatment of the contract modification as a separate contract, prospectively or through a cumulative catch-up adjustment. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Contracts with Multiple Performance Obligations The Company executes arrangements that include multiple performance obligations (consisting of subscription and professional services). Additionally, the Company is often party to multiple concurrent contracts or contracts pursuant to which a client may purchase a combination of services. At contract inception, the Company determines whether multiple contracts will be combined and accounted for as a single arrangement. Combination is generally required when the economics of the individual contracts cannot be understood without reference to the whole. While certain contracts may be combined, they are reviewed to determine if the contract has multiple distinct performance obligations. These situations require judgment to determine whether the multiple promises are separate performance obligations. Once the Company has determined the performance obligations, the Company determines the transaction price. The Company allocates the transaction price to each performance obligation on a relative standalone selling price (“SSP”) basis. The Company then allocates the transaction price to each performance obligation in the contract based on a relative SSP and the corresponding revenues are recognized as the related performance obligations are satisfied. The determination of SSP for each distinct performance obligation requires judgement. The Company rarely sells its enterprise cloud software products and services as readily observable standalone sales, so the Company is required to estimate the SSP for each performance obligation. In the determination of the SSP, the Company uses information that includes contractually stated prices, market conditions, costs, renewal contacts, list prices, internal discounting tables and other observable inputs. In making these judgments, the Company analyzes various factors, including the Company’s pricing methodology and consistency, size of the arrangement, length of term, customer demographics and overall market and economic conditions. Based on these results, the estimated SSP is set for each distinct product or service delivered to customers. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation as an expense in the statements of operations based on the awards’ grant date fair values. The Company estimates the fair value of service-based options granted using the Black-Scholes option pricing model. Stock options that include service, performance and market conditions are valued using the Monte-Carlo simulation model. The Black-Scholes option pricing model requires inputs based on certain assumptions, including (a) the fair value per share of the Company’s common stock (b) the expected stock price volatility, (c) the calculation of expected term of the award, (d) the risk-free interest rate and (e) expected dividends. A Monte-Carlo simulation is an analytical method used to estimate value by performing a large number of simulations or trial runs and determining a value based on the possible outcomes from these trial runs. The fair value of stock-based payments is recognized as compensation expense, net of expected forfeitures, over the requisite service period, which is generally the vesting period, with the exception of the fair value of stock-based payments for awards that include service, performance and market conditions, which is recognized as compensation expense over the requisite service period as achievement of the performance objective becomes probable. The Company issued certain performance stock units (“PSUs”), that vest upon the satisfaction of time-based service, performance-based and market conditions. The Company estimates compensation cost based on the grant date fair value and recognize the expense on a graded vesting basis over the vesting period of the award. As the PSUs are subject to a market condition (stock price), the grant date fair value is measured using a Monte Carlo simulation approach, which estimates the fair value of awards based on randomly generated simulated stock-price paths through a lattice-type structure. The performance-based vesting condition is satisfied upon the occurrence of a qualifying event, which is generally defined as a change in control transaction or the effective date of a registration statement of the Company filed under the Securities Act for the sale of the Company's common stock. Upon the effectiveness of the Registration Statement on June 22, 2021, the performance-based vesting condition was satisfied, and therefore, the Company commenced recognition of compensation expense using the accelerated attribution method over the requisite service period. The Company estimates fair value of its restricted stock units (“RSU”) based on the fair value of the underlying common stock, net of estimated forfeitures. Subsequent to the IPO, the Company determines the fair value using the closing price of its Class A common stock as reported on the date of grant. |
Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted The Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”) allows the Company, as an emerging growth company, to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected to use this extended transition period under the JOBS Act. The adoption dates discussed below reflect this election. In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 , Leases (Topic 842) , and additional changes, modifications, clarifications or interpretations related to this guidance thereafter (“ASU 2016-02”). ASU 2016-02 requires a reporting entity to recognize right-of-use assets and lease liabilities on the balance sheet for operating leases to increase transparency and comparability. ASU 2016-02 is effective for fiscal years beginning after December 15, 2021, including interim periods within that fiscal year, with early adoption permitted. The Company will record a right of use asset and liability, and is currently evaluating the impact of adoption on the consolidated financial statements. Although the Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements and related disclosures, the Company currently expects that most of its operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon adoption. In June 2016, the FASB issued ASU 2016-13, with subsequent amendments, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires immediate recognition of management’s estimates of current expected credit losses. ASU 2016-13 is effective for annual reporting periods beginning after December 15, 2022, and interim periods within that fiscal year, with early adoption permitted. The Company is currently evaluating the impact of adoption on the consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, Debt-Debt with Conversion Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. ASU 2020-06 also improves and amends the related Earnings Per Share guidance for both Subtopics. ASU 2020-06 is part of the FASB’s simplification initiative, which aims to reduce unnecessary complexity in U.S. GAAP. ASU 2020-06 will be effective for annual reporting periods beginning after December 15, 2021. Early adoption is permitted. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Available-For-Sale Marketable Securities | The following is a summary of available-for-sale marketable securities, excluding those securities classified within cash and cash equivalents on the condensed consolidated balance sheets (in thousands): October 31, 2021 Amortized Cost Unrealized Gain Unrealized Losses Fair value Corporate bonds $ 5,116 $ — $ (4) $ 5,112 U.S. government and agency securities 13,999 — — 13,999 Marketable securities $ 19,115 $ — $ (4) $ 19,111 January 31, 2021 Amortized Cost Unrealized Gain Unrealized Losses Fair value Corporate bonds $ 26,894 $ — $ (2) $ 26,892 U.S. government and agency securities 125,804 20 — 125,824 Commercial paper 59,936 — — 59,936 Marketable securities $ 212,634 $ 20 $ (2) $ 212,652 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present information about the Company’s financial assets and liabilities that have been measured at fair value on a recurring basis as of October 31, 2021, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): Level 1 Level 2 Level 3 Total Financial Assets: Cash Equivalents: Money market funds $ 483,130 $ — $ — $ 483,130 Marketable Securities: Corporate bonds — 5,112 — 5,112 U.S. government and agency securities — 13,999 — 13,999 Total financial assets $ 483,130 $ 19,111 $ — $ 502,241 The following table represents the fair value hierarchy for the Company’s assets measured at fair value on a recurring basis as of January 31, 2021 (in thousands): Level 1 Level 2 Level 3 Total Financial Assets: Cash Equivalents: Money market funds $ 37,451 $ — $ — $ 37,451 Marketable Securities: Corporate bonds — 26,892 — 26,892 U.S. government and agency securities — 125,824 — 125,824 Commercial paper — 59,936 — 59,936 Total financial assets $ 37,451 $ 212,652 $ — $ 250,103 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expense and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): October 31, January 31, Prepaid hosting and data costs $ 35,881 $ 58,386 Prepaid software costs 2,688 3,771 Capitalized commissions costs, current portion 26,044 24,294 Prepaid insurance 3,495 289 Contract assets 2,628 824 Other 26,071 8,255 Prepaid expenses and other current assets $ 96,807 $ 95,819 |
Schedule of Property, Plant and Equipment, Net | Property and equipment, net consisted of the following (in thousands): October 31, January 31, Computer equipment $ 12,658 $ 7,921 Office furniture and other 1,222 1,193 Leasehold improvements 3,664 3,500 Less accumulated depreciation and amortization (11,235) (8,598) Total fixed assets, net 6,309 4,016 Capitalized internal-use software 20,725 16,224 Less accumulated amortization (13,593) (11,229) Total capitalized internal-use software 7,132 4,995 Property and equipment, net $ 13,441 $ 9,011 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): October 31, January 31, Bonuses $ 15,320 $ 17,783 Commissions 11,895 13,346 Employee liabilities (1) 23,691 15,040 Purchased media costs (2) 4,559 2,695 Accrued sales and use tax liability 5,722 5,667 Accrued income taxes 3,354 677 Professional services 2,012 1,603 Other 11,681 6,359 $ 78,234 $ 63,170 (1) Includes $5.7 million of accrued ESPP employee contributions at October 31, 2021. Refer to Note 11, Stock-based Compensation, for further discussion of the Company’s ESPP. (2) Purchased media costs consist of amounts owed to the Company’s vendors for the purchase of advertising space on behalf of its customers. |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the periods presented were as follows (in thousands): October 31, January 31, Balance at beginning of period $ 46,823 $ 47,100 Business combination 3,023 — Effect of exchange rates 5 (277) Balance at end of period $ 49,851 $ 46,823 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments and Components of Interest Expense Incurred | The following table summarizes the Company’s long-term debt at January 31, 2021 (in thousands): January 31, Senior Subordinated Secured Convertible Note $ 75,000 Paid-in-kind interest 5,390 Principal balance 80,390 Less: Unamortized debt discounts and issuance costs (1,542) Revolving credit facility — Total Debt $ 78,848 The following table presents the components of interest expense incurred on the Notes for the three and nine months ended October 31, 2021 (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 Interest expense at coupon rate $ — $ 1,930 $ 3,182 $ 3,411 Amortization of debt discounts and issuance costs — 47 84 83 Total interest expense $ — $ 1,977 $ 3,266 $ 3,494 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | As of October 31, 2021, future minimum lease payments under non-cancelable operating leases were as follows (in thousands): October 31, 2021 2022 (remaining three months) $ 1,981 2023 7,585 2024 5,639 2025 2,427 2026 and thereafter 2,660 Total $ 20,292 |
Schedule of Non-Cancelable Minimum Guaranteed Purchase Commitments for Data and Hosting Services | The Company has non-cancelable minimum guaranteed purchase commitments for data and hosting services as of January 31, 2021 as follows (in thousands): Fiscal year ended January 31, 2022 $ 17,859 2023 28,743 2024 62,792 2025 52,833 2026 and thereafter 51,500 Total $ 213,727 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | A summary of the Company’s stock option activity for the Plan for the nine months ended October 31, 2021 is as follows: Number of stock options outstanding Weighted average exercise price Weighted average remaining contractual life Aggregate intrinsic value (in thousands) (in years) (in thousands) Balance as of January 31, 2021 46,455 4.37 7.7 $ 218,450 Granted 10,641 11.43 Exercised (8,882) 2.02 Cancelled/forfeited (2,447) 8.34 Balance as of October 31, 2021 45,767 6.25 8.0 $ 597,167 Exercisable as of October 31, 2021 16,433 $ 4.28 7.1 $ 246,801 Vested and expected to vest as of October 31, 2021 37,577 $ 5.76 7.8 $ 508,972 The weighted-average grant date fair value of options granted and the total intrinsic value of options exercised during the periods presented were as follows: Nine Months Ended October 31, 2021 2020 Weighted average grant date fair value of options granted $ 5.58 $ 2.51 Total intrinsic value of options exercised (in thousands) $ 77,760 $ 43,201 |
Summary of Assumptions Used to Estimate Fair Value of Options Granted to Employees | The following assumptions were used to estimate the fair value of options granted to employees: Nine Months Ended October 31, 2021 2020 Expected term (in years) 6.0 6.0 Risk-free interest rate 0.9% - 1.4% 0.3% - 0.8% Expected volatility 50.9% - 52.1% 42.3% - 45.5% Expected dividend rate 0% 0% Fair value of common stock $10.96 - $14.02 $4.93 - $7.38 |
Summary of RSU Award Activity | A summary of the Company’s RSU award activity was as follows: Number of restricted shares outstanding Weighted Average Grant Date Fair Value (in thousands) Balance as of January 31, 2021 450 $ 7.26 Granted 465 17.74 Released (150) 3.64 Balance as of October 31, 2021 765 $ 14.34 |
Summary of Assumptions Used to Estimate Fair Value of Awards | The fair value of the share purchase rights granted under the ESPP during the nine months ended October 31, 2021 was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: Nine Months Ended October 31, 2021 Expected term (in years) 0.9 Risk-free interest rate 0.05% - 0.08% Expected volatility 55.70% - 57.00% Expected dividend rate 0% Fair value of common stock $22.37 |
Summary of Stock-based Compensation Expense | Stock-based compensation expense included in operating results was allocated as follows (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 Costs of subscription $ 589 $ 338 $ 1,411 $ 856 Costs of professional services 889 422 1,911 876 Research and development 2,186 1,823 4,915 2,910 Sales and marketing 4,997 4,889 13,963 8,994 General and administrative 3,760 15,834 15,753 19,077 Stock-based compensation, net of amounts capitalized 12,421 23,306 37,953 32,713 Capitalized stock-based compensation 232 — 465 — Total stock-based compensation $ 12,653 $ 23,306 $ 38,418 $ 32,713 Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 Equity classified awards $ 12,403 $ 23,056 $ 37,668 $ 32,047 Other awards (1) 250 250 750 666 $ 12,653 $ 23,306 $ 38,418 $ 32,713 (1) Nonemployee grant recorded over five years, representing the same period and in the same manner as if the grantor had paid cash for the services instead of paying with or using the share-based payment award. |
Summary of Unrecognized Compensation Cost Related to Unvested Awards Not Yet Recognized | As of October 31, 2021, total unrecognized compensation cost related to unvested awards not yet recognized under all equity compensation plans, adjusted for estimated forfeitures, was as follows: October 31, 2021 Unrecognized expense Weighted average expense recognition period (in thousands) (in years) Stock options $ 49,577 2.9 Performance share units 2,963 3.3 Restricted stock units 5,975 3.1 ESPP 8,447 0.6 |
Net (Loss) Income Per Share (Ta
Net (Loss) Income Per Share (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Loss Per Share | The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share amounts): Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 Net loss per share - basic and diluted: Numerator: Net loss attributable to Class A and $ (29,231) $ (18,968) $ (77,175) $ (27,166) Denominator: Weighted-average shares outstanding used in computing net loss per share attributable to Class A and Class B common stockholders - basic and diluted 255,195 91,672 174,497 88,428 Net loss per common share attributable to Class A and Class B common stockholders - basic and diluted $ (0.11) $ (0.21) $ (0.44) $ (0.31) Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows (in thousands): 2021 2020 Convertible Preferred Stock — 122,310 Options to purchase common stock 45,767 44,251 Convertible note — 8,294 Performance share units 3,175 — Restricted stock units 765 150 ESPP 293 — Deferred stock compensation plan — 759 Warrants to purchase common stock 2,500 2,731 Total shares excluded from net (loss) income per share 52,500 178,495 |
Geographic Information (Tables)
Geographic Information (Tables) | 9 Months Ended |
Oct. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Region | The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use the cloud - based software platform (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 Americas $ 80,333 $ 63,242 $ 226,573 $ 186,515 EMEA 35,406 24,737 99,838 71,682 Other 11,317 8,353 30,317 24,621 $ 127,056 $ 96,332 $ 356,728 $ 282,818 |
Summary of Long-lived Assets by Geographical Regions | As of October 31, 2021 and January 31, 2021, long lived assets by geographic region were as follows (in thousands): October 31, January 31, Americas (1) $ 9,237 $ 6,135 EMEA 1,825 1,474 Other 2,379 1,402 $ 13,441 $ 9,011 (1) Includes $9.0 million and $6.0 million of fixed assets held in the United States at October 31, 2021 and January 31, 2021, respectively. |
Organization and Description _2
Organization and Description of Business (Details) $ / shares in Units, $ in Millions | Jul. 01, 2021shares | Jul. 01, 2021USD ($) | Jun. 25, 2021$ / sharesshares | Oct. 31, 2021subsidiary |
Subsidiary, Sale of Stock [Line Items] | ||||
Number of subsidiaries | subsidiary | 16 | |||
Net proceeds from offering | $ | $ 276 | |||
Underwriting discounts and commissions | $ | $ 16.6 | |||
Common Class A | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Common stock, conversion ratio | 1 | |||
Common Class B | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Shares issued upon conversion of convertible preferred stock (in shares) | 120,902,273 | |||
Convertible preferred stock, conversion ratio | 1 | |||
Shares issued upon conversion of convertible notes (in shares) | 9,694,004 | |||
Common stock, conversion ratio | 1 | |||
IPO | Common Class A | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Number of shares issued and sold (in shares) | 16,625,000 | |||
Offering price (in dollars per share) | $ / shares | $ 16 | |||
Underwriters' option to purchase | Common Class A | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Number of shares issued and sold (in shares) | 1,662,500 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Details) | 9 Months Ended |
Oct. 31, 2021segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | Jan. 31, 2021 | |
Capitalized Contract Cost [Line Items] | |||||
Capitalized costs to obtain customer contracts | $ 55.3 | $ 41.5 | $ 55.3 | $ 41.5 | |
Amortization of costs to obtain customer contracts | 7.3 | 5.5 | 21 | 15.3 | |
Revenue recognized previously included in deferred revenue balance | 104.4 | 80.4 | 194 | 158.4 | |
Contract assets | 2.6 | 2.6 | $ 0.8 | ||
Prepaid expenses and other current assets | |||||
Capitalized Contract Cost [Line Items] | |||||
Capitalized costs to obtain customer contracts | 26 | 18 | 26 | 18 | |
Other noncurrent assets | |||||
Capitalized Contract Cost [Line Items] | |||||
Capitalized costs to obtain customer contracts | $ 29.2 | $ 23.5 | $ 29.2 | $ 23.5 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligation (Details) $ in Millions | Oct. 31, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 459.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-11-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 329.6 |
Timing of satisfaction of performance obligation | 12 months |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Jan. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 19,115 | $ 212,634 |
Unrealized Gain | 0 | 20 |
Unrealized Losses | (4) | (2) |
Fair value | 19,111 | 212,652 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 5,116 | 26,894 |
Unrealized Gain | 0 | 0 |
Unrealized Losses | (4) | (2) |
Fair value | 5,112 | 26,892 |
U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 13,999 | 125,804 |
Unrealized Gain | 0 | 20 |
Unrealized Losses | 0 | 0 |
Fair value | $ 13,999 | 125,824 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 59,936 | |
Unrealized Gain | 0 | |
Unrealized Losses | 0 | |
Fair value | $ 59,936 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Jan. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 19,111 | $ 212,652 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 502,241 | 250,103 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 483,130 | 37,451 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 19,111 | 212,652 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 0 | 0 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 5,112 | 26,892 |
Corporate bonds | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 5,112 | 26,892 |
Corporate bonds | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Corporate bonds | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 5,112 | 26,892 |
Corporate bonds | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 13,999 | 125,824 |
U.S. government and agency securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 13,999 | 125,824 |
U.S. government and agency securities | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
U.S. government and agency securities | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 13,999 | 125,824 |
U.S. government and agency securities | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 59,936 | |
Commercial paper | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 59,936 | |
Commercial paper | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Commercial paper | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 59,936 | |
Commercial paper | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Money market funds | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 483,130 | 37,451 |
Money market funds | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 483,130 | 37,451 |
Money market funds | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Money market funds | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 0 | $ 0 |
Balance Sheet Components - Prep
Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Jan. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid hosting and data costs | $ 35,881 | $ 58,386 |
Prepaid software costs | 2,688 | 3,771 |
Capitalized commissions costs, current portion | 26,044 | 24,294 |
Prepaid insurance | 3,495 | 289 |
Contract assets | 2,628 | 824 |
Other | 26,071 | 8,255 |
Prepaid expenses and other current assets | $ 96,807 | $ 95,819 |
Balance Sheet Components - Prop
Balance Sheet Components - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Jan. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Less accumulated depreciation and amortization | $ (11,235) | $ (8,598) |
Total fixed assets, net | 6,309 | 4,016 |
Capitalized internal-use software | 20,725 | 16,224 |
Less accumulated amortization | (13,593) | (11,229) |
Total capitalized internal-use software | 7,132 | 4,995 |
Property and equipment, net | 13,441 | 9,011 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | 12,658 | 7,921 |
Office furniture and other | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | 1,222 | 1,193 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | $ 3,664 | $ 3,500 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||
Depreciation and amortization for property and equipment | $ 1.2 | $ 0.7 | $ 3 | $ 1.8 |
Amortization expense for capitalized internal-use software | 0.9 | 0.6 | 2.4 | 1.9 |
Capitalized internal-use software costs | $ 1.9 | $ 1 | $ 4.6 | $ 2.5 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Jan. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Bonuses | $ 15,320 | $ 17,783 |
Commissions | 11,895 | 13,346 |
Employee liabilities | 23,691 | 15,040 |
Purchased media costs | 4,559 | 2,695 |
Accrued sales and use tax liability | 5,722 | 5,667 |
Accrued income taxes | 3,354 | 677 |
Professional services | 2,012 | 1,603 |
Other | 11,681 | 6,359 |
Accrued expenses and other current liabilities | 78,234 | $ 63,170 |
Accrued ESPP employee contributions | $ 5,700 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Goodwill [Roll Forward] | ||
Balance at beginning of period | $ 46,823 | $ 47,100 |
Business combination | 3,023 | 0 |
Effect of exchange rates | 5 | $ (277) |
Balance at end of period | $ 49,851 |
Debt - Summary of Long-term Deb
Debt - Summary of Long-term Debt (Details) - USD ($) | Oct. 31, 2021 | Jan. 31, 2021 | May 20, 2020 |
Debt Instrument [Line Items] | |||
Principal balance | $ 80,390,000 | ||
Less: Unamortized debt discounts and issuance costs | (1,542,000) | ||
Total Debt | $ 0 | 78,848,000 | |
Line of Credit | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Revolving credit facility | $ 0 | 0 | |
Senior Subordinated Secured Convertible Note | Convertible Note | |||
Debt Instrument [Line Items] | |||
Principal balance | 75,000,000 | $ 75,000,000 | |
Paid-in-kind interest | Convertible Note | |||
Debt Instrument [Line Items] | |||
Principal balance | $ 5,390,000 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Jun. 25, 2021 | Oct. 31, 2021 | Jan. 31, 2021 | May 20, 2020 |
Debt Instrument [Line Items] | ||||
Debt outstanding | $ 0 | $ 78,848,000 | ||
Principal balance | 80,390,000 | |||
Common Class B | ||||
Debt Instrument [Line Items] | ||||
Shares issued upon conversion of convertible notes (in shares) | 9,694,004 | |||
Convertible Note | Senior Subordinated Secured Convertible Note | ||||
Debt Instrument [Line Items] | ||||
Principal balance | 75,000,000 | $ 75,000,000 | ||
Closing fee | 1.05% | |||
Principal amount | $ 150,000,000 | |||
Original issue discount | 2.10% | |||
Fixed rate | 9.875% | |||
Effective interest rate | 10.30% | |||
Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | |||
Amounts outstanding | $ 0 | $ 0 | ||
Line of Credit | Revolving Credit Facility | Prime Rate | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.25% | |||
Line of Credit | Revolving Credit Facility | Federal Funds Effective Rate | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.50% | |||
Interest rate in addition to basis spread | 0.25% |
Debt - Interest Expense (Detail
Debt - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Debt Disclosure [Abstract] | ||||
Interest expense at coupon rate | $ 0 | $ 1,930 | $ 3,182 | $ 3,411 |
Amortization of debt discounts and issuance costs | 0 | 47 | 84 | 83 |
Total interest expense | $ 0 | $ 1,977 | $ 3,266 | $ 3,494 |
Commitment and Contingencies -
Commitment and Contingencies - Additional Information (Details) | Sep. 07, 2017USD ($)verdict_question | Oct. 31, 2021USD ($) | Oct. 31, 2020USD ($) | Oct. 31, 2021USD ($) | Oct. 31, 2020USD ($) | Jan. 31, 2021USD ($) |
Loss Contingencies [Line Items] | ||||||
Deferred rent | $ 2,400,000 | $ 2,400,000 | $ 2,200,000 | |||
Rent expense | 2,200,000 | $ 1,700,000 | 5,500,000 | $ 5,200,000 | ||
Letters of credit | 1,300,000 | 1,300,000 | 0 | |||
Number of verdict questions | verdict_question | 15 | |||||
Pending litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency, damages sought | $ 22,000,000 | |||||
Accrued expenses and other current liabilities | ||||||
Loss Contingencies [Line Items] | ||||||
Deferred rent | 1,300,000 | 1,300,000 | 1,300,000 | |||
Other liabilities | ||||||
Loss Contingencies [Line Items] | ||||||
Deferred rent | $ 1,100,000 | $ 1,100,000 | $ 900,000 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Lease Payments Under Non-cancelable Operating Leases (Details) $ in Thousands | Oct. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 (remaining three months) | $ 1,981 |
2023 | 7,585 |
2024 | 5,639 |
2025 | 2,427 |
2026 and thereafter | 2,660 |
Total | $ 20,292 |
Commitments and Contingencies_2
Commitments and Contingencies - Purchase Commitments (Details) $ in Thousands | Oct. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 17,859 |
2023 | 28,743 |
2024 | 62,792 |
2025 | 52,833 |
2026 and thereafter | 51,500 |
Total | $ 213,727 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ / shares in Units, $ in Millions | Jul. 01, 2021USD ($) | Jun. 29, 2021shares | Oct. 31, 2020USD ($)$ / sharesshares | Oct. 31, 2021USD ($)$ / sharesshares | Jun. 25, 2021vote$ / sharesshares | Jan. 31, 2021$ / sharesshares | Jan. 31, 2012$ / sharesshares |
Class of Stock [Line Items] | |||||||
Common stock, shares authorized (in shares) | shares | 0 | 299,000,000 | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00003 | $ 0.00003 | |||||
Preferred stock, shares authorized (in shares) | shares | 20,000,000 | 20,000,000 | 0 | ||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.00003 | $ 0.00003 | $ 0.00003 | ||||
Net proceeds from offering | $ | $ 276 | ||||||
Number of shares called by warrants or rights (in shares) | shares | 2,500,000 | 231,000 | |||||
Warrant exercise price (in dollars per share) | $ / shares | $ 10 | $ 0.08 | |||||
Fair value of warrants | $ | $ 7.6 | ||||||
Private Placement | |||||||
Class of Stock [Line Items] | |||||||
Net proceeds from offering | $ | $ 200 | ||||||
Common Class A | |||||||
Class of Stock [Line Items] | |||||||
Common stock, shares authorized (in shares) | shares | 2,000,000,000 | 2,000,000,000 | 0 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00003 | $ 0.00003 | $ 0.00003 | ||||
Votes per share | vote | 1 | ||||||
Common stock, conversion ratio | 1 | ||||||
Common Class B | |||||||
Class of Stock [Line Items] | |||||||
Common stock, shares authorized (in shares) | shares | 310,000,000 | 310,000,000 | 0 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00003 | $ 0.00003 | $ 0.00003 | ||||
Votes per share | vote | 10 | ||||||
Common stock, conversion ratio | 1 | ||||||
Shares issued upon conversion of convertible preferred stock (in shares) | shares | 120,902,273 | ||||||
Convertible preferred stock, conversion ratio | 1 | ||||||
Shares issued upon cashless exercise of common stock warrants (in shares) | shares | 230,259 | ||||||
Series G-1 Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Offering price (in dollars per share) | $ / shares | $ 9.25 | ||||||
Carrying value of preferred stock | $ | $ 95.9 | ||||||
Series G-1 Preferred Stock | Private Placement | |||||||
Class of Stock [Line Items] | |||||||
Number of shares issued and sold (in shares) | shares | 10,800,000 | ||||||
Offering price (in dollars per share) | $ / shares | $ 9.25 | ||||||
Series G-2 Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Offering price (in dollars per share) | $ / shares | $ 11 | ||||||
Carrying value of preferred stock | $ | $ 95.9 | ||||||
Series G-2 Preferred Stock | Private Placement | |||||||
Class of Stock [Line Items] | |||||||
Number of shares issued and sold (in shares) | shares | 9,100,000 | ||||||
Offering price (in dollars per share) | $ / shares | $ 11 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Thousands | Jun. 25, 2021USD ($)shares | Jun. 07, 2021shares | May 20, 2021periodshares | Jan. 28, 2021USD ($)$ / sharesshares | Mar. 18, 2019USD ($)tranche$ / sharesshares | Jun. 30, 2021USD ($)$ / shares | May 31, 2021shares | Oct. 31, 2021USD ($)$ / sharesshares | Oct. 31, 2020USD ($) | Oct. 31, 2021USD ($)$ / sharesshares | Oct. 31, 2020USD ($)$ / shares | Jan. 31, 2021$ / shares | May 31, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of outstanding stock used to calculate the increase in shares available for issuance | 5.00% | ||||||||||||
Shares available for grant (in shares) | 26,138,684 | 26,138,684 | |||||||||||
Stock-based compensation expense, net of amounts capitalized | $ | $ 12,421 | $ 23,306 | $ 37,953 | $ 32,713 | |||||||||
Granted (in shares) | 10,641,000 | ||||||||||||
Share price (in dollars per share) | $ / shares | $ 19.30 | $ 19.30 | |||||||||||
Grant date fair value of options vested | $ | $ 19,800 | $ 11,100 | |||||||||||
Accrued ESPP employee contributions | $ | $ 5,700 | 5,700 | |||||||||||
Chief Executive Officer | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 9,274,528 | ||||||||||||
Number of tranches | tranche | 4 | ||||||||||||
Chief Executive Officer | Tranche One | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 2,318,632 | ||||||||||||
Award vesting period | 3 years | ||||||||||||
Chief Executive Officer | Tranche Two through Four | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 6,955,896 | ||||||||||||
Chief Executive Officer | Tranche Two | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 2,318,632 | ||||||||||||
Vested (in shares) | 2,318,632 | ||||||||||||
Chief Executive Officer | Tranche Three | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 2,318,632 | ||||||||||||
Chief Executive Officer | Tranche Four | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 2,318,632 | ||||||||||||
Performance share units | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 3,100,000 | ||||||||||||
Award requisite service period | 5 years | ||||||||||||
Equity volatility | 40.00% | ||||||||||||
Risk-free rate | 0.42% | ||||||||||||
Fair value of common stock (in dollars per share) | $ / shares | $ 9.07 | ||||||||||||
Expected term (in years) | 5 years | ||||||||||||
Grant date fair value | $ | $ 3,500 | ||||||||||||
Stock-based compensation expense, net of amounts capitalized | $ | $ 400 | ||||||||||||
Unrecognized expense | $ | 2,963 | $ 2,963 | |||||||||||
Performance share units | Minimum | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 0 | ||||||||||||
Weighted-average trading price of common stock (in dollars per share) | $ / shares | $ 30 | ||||||||||||
Performance share units | Maximum | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 3,100,000 | ||||||||||||
Weighted-average trading price of common stock (in dollars per share) | $ / shares | $ 100 | ||||||||||||
Stock options | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Expected term (in years) | 6 years | 6 years | |||||||||||
Unrecognized expense | $ | 49,577 | $ 49,577 | |||||||||||
Stock options | Chief Executive Officer | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Equity volatility | 44.00% | ||||||||||||
Risk-free rate | 2.60% | ||||||||||||
Fair value of common stock (in dollars per share) | $ / shares | $ 4.25 | ||||||||||||
Expected term (in years) | 10 years | ||||||||||||
Grant date fair value | $ | $ 1,700 | ||||||||||||
Stock options | Chief Executive Officer | Tranche Two | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock-based compensation expense, net of amounts capitalized | $ | 5,800 | ||||||||||||
Stock options | Chief Executive Officer | Tranche Three and Four | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Unrecognized expense | $ | 100 | $ 100 | |||||||||||
Stock options | Minimum | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Fair value of common stock (in dollars per share) | $ / shares | $ 10.96 | $ 4.93 | |||||||||||
Stock options | Maximum | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Fair value of common stock (in dollars per share) | $ / shares | $ 14.02 | $ 7.38 | |||||||||||
Restricted stock units | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 300,000 | 465,000 | |||||||||||
Award requisite service period | 5 years | ||||||||||||
Stock-based compensation expense, net of amounts capitalized | $ | $ 600 | ||||||||||||
Unrecognized expense | $ | $ 5,975 | $ 5,975 | |||||||||||
Award vesting percentage | 20.00% | ||||||||||||
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 14.34 | $ 14.34 | $ 7.26 | ||||||||||
ESPP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of outstanding stock used to calculate the increase in shares available for issuance | 1.00% | ||||||||||||
Fair value of common stock (in dollars per share) | $ / shares | $ 22.37 | ||||||||||||
Expected term (in years) | 10 months 24 days | ||||||||||||
Stock-based compensation expense, net of amounts capitalized | $ | $ 3,000 | $ 3,900 | |||||||||||
Unrecognized expense | $ | $ 8,447 | 8,447 | |||||||||||
Shares authorized for issuance (in shares) | 5,100,000 | ||||||||||||
Number of additional shares allowable under the plan | 15,300,000 | ||||||||||||
Maximum amount of payroll deduction | 15.00% | ||||||||||||
Maximum number of shares per employee | 5,000 | ||||||||||||
Length of purchase period | 6 months | ||||||||||||
Purchase price of shares | 85.00% | ||||||||||||
Consecutive offering period | 12 months | ||||||||||||
Number of purchase periods | period | 2 | ||||||||||||
Deferred stock compensation plan | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Equity volatility | 48.20% | ||||||||||||
Risk-free rate | 0.17% | ||||||||||||
Fair value of common stock (in dollars per share) | $ / shares | $ 4.93 | ||||||||||||
Expected term (in years) | 1 year | ||||||||||||
Stock-based compensation expense, net of amounts capitalized | $ | $ 3,200 | ||||||||||||
Maximum amount of payroll deduction | 25.00% | ||||||||||||
Minimum amount of payroll deduction | 10.00% | ||||||||||||
Put right | $ | $ 1,900 | ||||||||||||
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 5.86 | ||||||||||||
Shares issued | 1,769,945 | ||||||||||||
Common Class A | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares authorized | 80,401,680 | ||||||||||||
Number of new shares authorized | 25,480,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Oct. 31, 2021 | Jan. 31, 2021 | |
Number of stock options outstanding | ||
Beginning balance (in shares) | 46,455 | |
Granted (in shares) | 10,641 | |
Exercised (in shares) | (8,882) | |
Cancelled/forfeited (in shares) | (2,447) | |
Ending balance (in shares) | 45,767 | 46,455 |
Exercisable (in shares) | 16,433 | |
Vested and expected to vest (in shares) | 37,577 | |
Weighted average exercise price | ||
Beginning balance, weighted average exercise price (in dollars per share) | $ 4.37 | |
Granted, weighted average exercise price (in dollars per share) | 11.43 | |
Exercised, weighted average exercise price (in dollars per share) | 2.02 | |
Cancelled/forfeited, weighted average exercise price (in dollars per share) | 8.34 | |
Ending balance, weighted average exercise price (in dollars per share) | 6.25 | $ 4.37 |
Exercisable, weighted average exercise price (in dollars per share) | 4.28 | |
Vested and expected to vest, weighted average exercise price (in dollars per share) | $ 5.76 | |
Weighted average remaining contractual life | 8 years | 7 years 8 months 12 days |
Exercisable, weighted average remaining contractual term | 7 years 1 month 6 days | |
Vested and expected to vest, weighted average remaining contractual term | 7 years 9 months 18 days | |
Aggregate intrinsic value | $ 597,167 | $ 218,450 |
Exercisable, aggregate intrinsic value | 246,801 | |
Vested and expected to vest, aggregate intrinsic value | $ 508,972 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Weighted average grant date fair value of options granted (in dollars per share) | $ 5.58 | $ 2.51 |
Total intrinsic value of options exercised | $ 77,760 | $ 43,201 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value Assumptions (Details) - $ / shares | 9 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 6 years | 6 years |
Risk-free interest rate, minimum | 0.90% | 0.30% |
Risk-free interest rate, maximum | 1.40% | 0.80% |
Expected volatility, minimum | 50.90% | 42.30% |
Expected volatility, maximum | 52.10% | 45.50% |
Expected dividend rate | 0.00% | 0.00% |
Stock options | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of common stock (in dollars per share) | $ 10.96 | $ 4.93 |
Stock options | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of common stock (in dollars per share) | $ 14.02 | $ 7.38 |
ESPP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 10 months 24 days | |
Risk-free interest rate, minimum | 0.05% | |
Risk-free interest rate, maximum | 0.08% | |
Expected volatility, minimum | 55.70% | |
Expected volatility, maximum | 57.00% | |
Expected dividend rate | 0.00% | |
Fair value of common stock (in dollars per share) | $ 22.37 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Details) - Restricted stock units - $ / shares | Jan. 28, 2021 | Oct. 31, 2021 |
Number of restricted shares outstanding | ||
Balance as of January 31, 2021 (in shares) | 450,000 | |
Granted (in shares) | 300,000 | 465,000 |
Released (in shares) | (150,000) | |
Balance as of July 31, 2021 (in shares) | 765,000 | |
Weighted Average Grant Date Fair Value | ||
Balance as of January 31, 2021, weighted average grant date fair value (in dollars per share) | $ 7.26 | |
Granted, weighted average grant date fair value (in dollars per share) | 17.74 | |
Released, weighted average grant date fair value (in dollars per share) | 3.64 | |
Balance as of July 31, 2021, weighted average grant date fair value (in dollars per share) | $ 14.34 |
Stock-Based Compensation - St_3
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense, net of amounts capitalized | $ 12,421 | $ 23,306 | $ 37,953 | $ 32,713 |
Capitalized stock-based compensation | 232 | 0 | 465 | 0 |
Total stock-based compensation | 12,653 | 23,306 | 38,418 | 32,713 |
Equity classified awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | 12,403 | 23,056 | 37,668 | 32,047 |
Other awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | 250 | 250 | 750 | 666 |
Costs of subscription | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense, net of amounts capitalized | 589 | 338 | 1,411 | 856 |
Costs of professional services | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense, net of amounts capitalized | 889 | 422 | 1,911 | 876 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense, net of amounts capitalized | 2,186 | 1,823 | 4,915 | 2,910 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense, net of amounts capitalized | 4,997 | 4,889 | 13,963 | 8,994 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense, net of amounts capitalized | $ 3,760 | $ 15,834 | $ 15,753 | $ 19,077 |
Stock-Based Compensation - Cost
Stock-Based Compensation - Costs Not Yet Recognized (Details) $ in Thousands | 9 Months Ended |
Oct. 31, 2021USD ($) | |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized expense | $ 49,577 |
Weighted average expense recognition period | 2 years 10 months 24 days |
Performance share units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized expense | $ 2,963 |
Weighted average expense recognition period | 3 years 3 months 18 days |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized expense | $ 5,975 |
Weighted average expense recognition period | 3 years 1 month 6 days |
ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized expense | $ 8,447 |
Weighted average expense recognition period | 7 months 6 days |
Net (Loss) Income Per Share - C
Net (Loss) Income Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Earnings Per Share [Abstract] | ||||
Net loss attributable to Class A and Class B common stockholders, basic | $ (29,231) | $ (18,968) | $ (77,175) | $ (27,166) |
Net loss attributable to Class A and Class B common stockholders, diluted | $ (29,231) | $ (18,968) | $ (77,175) | $ (27,166) |
Weighted-average shares outstanding used in computing net loss per share attributable to Class A and Class B common stockholders - basic (in shares) | 255,195,000 | 91,672,000 | 174,497,000 | 88,428,000 |
Weighted-average shares outstanding used in computing net loss per share attributable to Class A and Class B common stockholders - diluted (in shares) | 255,195,000 | 91,672,000 | 174,497,000 | 88,428,000 |
Net loss per common share attributable to Class A and Class B common stockholders - basic (in dollars per share) | $ (0.11) | $ (0.21) | $ (0.44) | $ (0.31) |
Net loss per common share attributable to Class A and Class B common stockholders - diluted (in dollars per share) | $ (0.11) | $ (0.21) | $ (0.44) | $ (0.31) |
Net (Loss) Income Per Share - P
Net (Loss) Income Per Share - Potentially Dilutive Securities Excluded from Diluted Per Share Calculations (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from net loss per share (in shares) | 52,500,000 | 178,495,000 | 52,500,000 | 178,495,000 |
Convertible Preferred Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from net loss per share (in shares) | 0 | 122,310,000 | 0 | 122,310,000 |
Options to purchase common stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from net loss per share (in shares) | 45,767,000 | 44,251,000 | 45,767,000 | 44,251,000 |
Convertible note | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from net loss per share (in shares) | 0 | 8,294,000 | 0 | 8,294,000 |
Performance share units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from net loss per share (in shares) | 3,175,000 | 0 | 3,175,000 | 0 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from net loss per share (in shares) | 765,000 | 150,000 | 765,000 | 150,000 |
ESPP | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from net loss per share (in shares) | 293,000 | 0 | 293,000 | 0 |
Deferred stock compensation plan | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from net loss per share (in shares) | 0 | 759,000 | 0 | 759,000 |
Warrants to purchase common stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from net loss per share (in shares) | 2,500,000 | 2,731,000 | 2,500,000 | 2,731,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 1,823 | $ 1,100 | $ 6,132 | $ 2,888 |
Reserve related to several open fiscal years not under audit | $ 1,300 | $ 1,300 |
Geographic Information - Additi
Geographic Information - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2021USD ($) | Oct. 31, 2020USD ($) | Oct. 31, 2021USD ($)segment | Oct. 31, 2020USD ($) | |
Segment Reporting [Abstract] | ||||
Number of operating segments | segment | 1 | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 127,056 | $ 96,332 | $ 356,728 | $ 282,818 |
US | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 75,400 | $ 59,600 | $ 212,300 | $ 176,400 |
Geographic Information - Revenu
Geographic Information - Revenue and Long-lived Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | Jan. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | $ 127,056 | $ 96,332 | $ 356,728 | $ 282,818 | |
Long-lived assets | 13,441 | 13,441 | $ 9,011 | ||
Americas | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 80,333 | 63,242 | 226,573 | 186,515 | |
Long-lived assets | 9,237 | 9,237 | 6,135 | ||
EMEA | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 35,406 | 24,737 | 99,838 | 71,682 | |
Long-lived assets | 1,825 | 1,825 | 1,474 | ||
Other | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 11,317 | 8,353 | 30,317 | 24,621 | |
Long-lived assets | 2,379 | 2,379 | 1,402 | ||
US | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 75,400 | $ 59,600 | 212,300 | $ 176,400 | |
Long-lived assets | $ 9,000 | $ 9,000 | $ 6,000 |