Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2022 | Mar. 31, 2022 | Jul. 31, 2021 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 31, 2022 | ||
Current Fiscal Year End Date | --01-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-40528 | ||
Entity Registrant Name | Sprinklr, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 45-4771485 | ||
Entity Address, Address Line One | 29 West 35th Street, 7th floor | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 Public Float | $ 354.7 | ||
Documents Incorporated by Reference | Portions of the registrant's Proxy Statement for its 2022 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent stated herein. Such Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the registrant's fiscal year ended January 31, 2022. | ||
Entity Central Index Key | 0001569345 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
A | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 106,971,567 | ||
B | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 149,791,130 |
Audit Information
Audit Information | 12 Months Ended |
Jan. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | New York, New York |
Auditor Firm ID | 185 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 321,426 | $ 68,037 |
Marketable securities | 210,983 | 212,652 |
Accounts receivable, net of allowance for doubtful accounts of $2.7 million and $3.2 million, respectively | 163,681 | 116,278 |
Prepaid expenses and other current assets | 109,167 | 101,096 |
Total current assets | 805,257 | 498,063 |
Property and equipment, net | 14,705 | 9,011 |
Goodwill | 50,706 | 47,427 |
Other non-current assets | 49,378 | 42,512 |
Total assets | 920,046 | 597,013 |
Current liabilities: | ||
Accounts payable | 15,802 | 16,955 |
Accrued expenses and other current liabilities | 100,220 | 63,170 |
Debt, short-term | 0 | 0 |
Deferred revenue | 279,028 | 221,439 |
Total current liabilities | 395,050 | 301,564 |
Long term debt | 0 | 78,848 |
Deferred revenue less current portion | 5,325 | 19,873 |
Deferred tax liability, long-term | 1,101 | 869 |
Other liabilities, long-term | 2,721 | 2,006 |
Total liabilities | 404,197 | 403,160 |
Commitments and contingencies | ||
Stockholders’ deficit | ||
Preferred stock | 0 | |
Common stock | 4 | |
Treasury stock, at cost, 14,130,784 shares as of January 31, 2022 and 2021, respectively | (23,831) | (23,831) |
Additional paid-in capital | 982,122 | 122,061 |
Accumulated other comprehensive loss (income) | (820) | 787 |
Accumulated deficit | (441,630) | (330,160) |
Total stockholders’ deficit | 515,849 | 193,853 |
Total liabilities and stockholders’ deficit | 920,046 | 597,013 |
Convertible Preferred Stock | ||
Stockholders’ deficit | ||
Preferred stock | $ 424,992 | |
A | ||
Stockholders’ deficit | ||
Common stock | 3 | |
B | ||
Stockholders’ deficit | ||
Common stock | $ 5 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jan. 31, 2022 | Jan. 31, 2021 |
Current assets: | ||
Allowance for doubtful accounts | $ 2.7 | $ 3.2 |
Stockholders’ deficit | ||
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, shares (in shares) | 14,130,784 | 14,130,784 |
Convertible Preferred Stock | ||
Stockholders’ deficit | ||
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 |
A | ||
Stockholders’ deficit | ||
Preferred stock, shares authorized (in shares) | 26,000,001 | |
Preferred stock, shares issued (in shares) | 26,000,001 | |
Preferred stock, shares outstanding (in shares) | 26,000,001 | |
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) | 105,929,885 | 0 |
Common stock, shares outstanding (in shares) | 105,929,885 | 0 |
B | ||
Stockholders’ deficit | ||
Preferred stock, shares authorized (in shares) | 28,928,898 | |
Preferred stock, shares issued (in shares) | 28,928,898 | |
Preferred stock, shares outstanding (in shares) | 28,928,898 | |
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) | 150,551,314 | 0 |
Common stock, shares outstanding (in shares) | 150,551,314 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Revenue: | |||
Revenue | $ 492,394 | $ 386,930 | $ 324,276 |
Costs of revenue: | |||
Cost of revenue | 147,551 | 122,082 | 123,159 |
Gross profit | 344,843 | 264,848 | 201,117 |
Operating expenses: | |||
Research and development | 60,591 | 40,280 | 32,481 |
Sales and marketing | 286,963 | 185,797 | 163,994 |
General and administrative | 84,759 | 64,348 | 40,171 |
Litigation settlement | 12,000 | 0 | 0 |
Total operating expenses | 444,313 | 290,425 | 236,646 |
Operating loss | (99,470) | (25,577) | (35,529) |
Other expense, net | (5,084) | (8,616) | (927) |
Loss before provision for income taxes | (104,554) | (34,193) | (36,456) |
Provision for income taxes | 6,916 | 3,777 | 3,325 |
Net loss | (111,470) | (37,970) | (39,781) |
Net loss attributable to redeemable noncontrolling interests | 0 | 0 | 27 |
Net loss attributable to Sprinklr | (111,470) | (37,970) | (39,754) |
Deemed dividend in relation to tender offer | 0 | (600) | 0 |
Net loss attributable to Sprinklr common stockholders, Basic | $ (111,470) | $ (38,570) | $ (39,754) |
Net loss per share attributable to Class A and Class B common stockholders, basic (in USD per share) | $ (0.57) | $ (0.42) | $ (0.47) |
Net loss per share attributable to Class A and Class B common stockholders, diluted (in USD per share) | $ (0.57) | $ (0.42) | $ (0.47) |
Weighted average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic (in shares) | 195,020,000 | 90,378,000 | 84,343,000 |
Weighted average shares used in computing net loss per share attributable to Class A and Class B common stockholders, diluted (in shares) | 195,020,000 | 90,378,000 | 84,343,000 |
Subscription | |||
Revenue: | |||
Revenue | $ 427,713 | $ 339,586 | $ 278,459 |
Costs of revenue: | |||
Cost of revenue | 89,896 | 77,033 | 77,796 |
Professional services | |||
Revenue: | |||
Revenue | 64,681 | 47,344 | 45,817 |
Costs of revenue: | |||
Cost of revenue | $ 57,655 | $ 45,049 | $ 45,363 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (111,470) | $ (37,970) | $ (39,754) |
Foreign currency translation adjustments | (1,390) | 1,757 | (314) |
Unrealized (losses) gains on investments | (217) | 18 | 0 |
Total comprehensive loss | (113,077) | (36,195) | (40,068) |
Net loss attributable to redeemable noncontrolling interests | 0 | 0 | 27 |
Comprehensive loss attributable to Sprinklr | 0 | 0 | (109) |
Comprehensive loss attributable to Sprinklr | $ (113,077) | $ (36,195) | $ (40,150) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' (Deficit) Equity - USD ($) shares in Thousands, $ in Thousands | Total | Senior Subordinated Secured Convertible Note | Cumulative Effect, Period of Adoption, Adjustment | Preferred StockConvertible Preferred Stock | Common Stock | Common StockCommon Class A And Common Class B | Common StockCommon Class A And Common Class BSenior Subordinated Secured Convertible Note | Additional Paid-in Capital | Additional Paid-in CapitalSenior Subordinated Secured Convertible Note | Treasury Stock | Accumulated Other Comprehensive (Loss) Income | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment | Redeemable Noncontrolling Interests |
Beginning balance (in shares) at Jan. 31, 2019 | 102,408 | 82,805 | 13,376 | |||||||||||
Beginning balance at Jan. 31, 2019 | $ (26,203) | $ 31,880 | $ 245,970 | $ 3 | $ 30,799 | $ (17,957) | $ (1,302) | $ (283,716) | $ 31,880 | $ 7,099 | ||||
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) | 1,352 | |||||||||||||
Issuance of Class A common stock upon initial public offering, net of underwriting discounts and issuance costs | 7,181 | 7,181 | (7,181) | |||||||||||
Stock-based compensation - equity classified awards | 10,166 | 10,166 | ||||||||||||
Issuance of common stock under deferred stock compensation plan (in shares) | 1,469 | |||||||||||||
Exercise of stock options and release of vested restricted stock units | 1,971 | 1,971 | ||||||||||||
Foreign currency translation adjustments | 314 | 314 | (109) | |||||||||||
Net loss | (39,754) | (39,754) | (27) | |||||||||||
Ending balance (in shares) at Jan. 31, 2020 | 102,408 | 85,626 | 13,376 | |||||||||||
Ending balance at Jan. 31, 2020 | $ (14,445) | $ 31,880 | $ 245,970 | $ 3 | 50,117 | $ (17,957) | (988) | (291,590) | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Accounting standards update, extensible enumeration | Accounting Standards Update 2014-09 | |||||||||||||
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 | 44,159 | 44,159 | ||||||||||||
Issuance of common stock under deferred stock compensation plan (in shares) | 9,572 | |||||||||||||
Exercise of stock options and release of vested restricted stock units | 16,333 | $ 1 | 16,332 | |||||||||||
Tender offer repurchases (in shares) | (1,407) | (755) | 755 | |||||||||||
Tender offer repurchases | (20,390) | $ (12,730) | (1,186) | $ (5,874) | (600) | |||||||||
Issuance of Common Stock warrants | 7,639 | 7,639 | ||||||||||||
Foreign currency translation adjustments | (1,757) | |||||||||||||
Issuance of common stock to a third party (in shares) | 1,013 | |||||||||||||
Issuance of common stock to a third party | 5,000 | 5,000 | ||||||||||||
Other comprehensive income (loss) | 1,775 | 1,775 | ||||||||||||
Net loss | (37,970) | (37,970) | ||||||||||||
Ending balance (in shares) at Jan. 31, 2021 | 120,903 | 95,456 | 0 | 14,131 | ||||||||||
Ending balance at Jan. 31, 2021 | 193,853 | $ 424,992 | $ 4 | $ 0 | 122,061 | $ (23,831) | 787 | (330,160) | $ 0 | |||||
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 Senior subordinated secured convertible notes (in shares) | (120,903) | 120,903 | 9,694 | |||||||||||
Conversion of senior subordinated secured convertible notes | 0 | $ 82,114 | $ (424,992) | $ 4 | 424,988 | $ 82,114 | ||||||||
Stock-based compensation - equity classified awards | 49,827 | 49,827 | ||||||||||||
Reclassification of common stock to Class B common stock (in shares) | (103,045) | 103,045 | ||||||||||||
Reclassification of common stock to Class B common stock | 0 | $ (4) | $ 4 | |||||||||||
Issuance of common stock under deferred stock compensation plan (in shares) | 1,770 | |||||||||||||
Exercise of stock options and release of vested restricted stock units (in shares) | 7,589 | 1,999 | ||||||||||||
Exercise of stock options and release of vested restricted stock units | 20,054 | 20,054 | ||||||||||||
Shares issued upon cashless exercise of common stock warrants (in shares) | 230 | |||||||||||||
Issuance of common shares upon ESPP purchase (in shares) | 552 | |||||||||||||
Issuance of common shares upon ESPP purchase | $ 7,105 | 7,105 | ||||||||||||
Exercise of stock options (in shares) | 9,421 | |||||||||||||
Other comprehensive income (loss) | $ (1,607) | (1,607) | ||||||||||||
Net loss | (111,470) | (111,470) | ||||||||||||
Ending balance (in shares) at Jan. 31, 2022 | 0 | 0 | 256,481 | 14,131 | ||||||||||
Ending balance at Jan. 31, 2022 | $ 515,849 | $ 0 | $ 0 | $ 8 | $ 982,122 | $ (23,831) | $ (820) | $ (441,630) |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Cash flow from operating activities: | |||
Net loss | $ (111,470) | $ (37,970) | $ (39,754) |
Net loss attributable to redeemable noncontrolling interests | 0 | 0 | (27) |
Net loss | (111,470) | (37,970) | (39,781) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization expense | 8,058 | 5,690 | 4,416 |
Bad debt expense | (186) | 689 | 1,707 |
Stock-based compensation expense | 50,131 | 43,883 | 10,166 |
Litigation settlement | 12,000 | 0 | 0 |
Non-cash interest paid in kind and discount amortization | 3,266 | 5,523 | 0 |
Deferred income taxes | 235 | 110 | (32) |
Other non-cash items, net | (1,272) | (712) | (423) |
Changes in operating assets and liabilities: | |||
Accounts receivable | (47,094) | (9,781) | (11,553) |
Prepaid expenses and other current assets | (8,220) | (28,709) | (22,347) |
Other non-current assets | (6,764) | (7,082) | (9,881) |
Accounts payable | (1,095) | 6,077 | (10,185) |
Accrued expenses and other current liabilities | 25,510 | 12,286 | 6,977 |
Deferred revenue | 43,404 | 17,511 | 88,866 |
Other liabilities | 575 | (204) | 1,036 |
Net cash (used in) provided by operating activities | (32,922) | 7,311 | 18,966 |
Cash flow from Investing activities: | |||
Purchases of marketable securities | (267,826) | (212,973) | 0 |
Sales of marketable securities | 56,652 | 0 | 0 |
Maturities of marketable securities | 211,555 | 0 | 0 |
Purchases of property and equipment | (6,148) | (2,701) | (2,633) |
Capitalized internal-use software | (6,258) | (3,783) | (2,533) |
Acquisitions, net of cash acquired | (3,625) | 0 | (6,500) |
Net cash used in investing activities | (15,650) | (219,457) | (11,666) |
Cash flow from financing activities: | |||
Proceeds from issuance of common stock upon initial public offering, net of underwriting discounts, commissions and other offering costs | 275,973 | 0 | 0 |
Proceeds from issuance of convertible preferred stock, net of issuance costs | 0 | 191,752 | 0 |
Proceeds from Senior subordinated secured convertible notes | 0 | 73,425 | 0 |
Proceeds from issuance of stock warrants | 0 | 7,639 | 0 |
Repurchase of preferred stock | 0 | (12,416) | 0 |
Deemed dividend on preferred stock | 0 | (600) | 0 |
Proceeds from short-term borrowings | 0 | 49,973 | 31,500 |
Repayments of short term borrowings | 0 | (49,973) | (41,000) |
Payments of debt and equity issuance costs | 0 | (475) | 0 |
Repurchase of common stock | 0 | (5,874) | 0 |
Proceeds from issuance of common stock upon exercise of stock options | 20,054 | 16,333 | 1,971 |
Proceeds from issuance of common stock upon ESPP purchase | 7,105 | 0 | 0 |
Net cash provided by (used in) financing activities | 303,132 | 269,784 | (7,529) |
Effect of exchange rate fluctuations on cash and cash equivalents | (1,171) | (71) | (173) |
Net change in cash and cash equivalents | 253,389 | 57,567 | (402) |
Cash and cash equivalents at beginning of period | 68,037 | 10,470 | 10,872 |
Cash and cash equivalents at end of period | 321,426 | 68,037 | 10,470 |
Supplemental disclosure of cash flow information | |||
Cash paid for income taxes | 3,458 | 3,187 | 2,733 |
Cash paid for interest | 0 | 224 | 547 |
Supplemental disclosure for non-cash investing and financing | |||
Accrued purchases of property and equipment | 216 | 382 | 260 |
Stock-based compensation expense capitalized in internal-use software | 696 | 0 | 0 |
Common stock issued | 0 | 0 | 7,181 |
Accrued for asset retirement obligations | 0 | 476 | 962 |
Stock Issued, Noncash Assets | |||
Supplemental disclosure for non-cash investing and financing | |||
Common stock issued | $ 0 | $ 5,000 | $ 0 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' (Deficit) Equity (Parenthetical) | Jan. 31, 2021$ / shares |
G-1 | |
Offering price (in dollars per share) | $ 9.25 |
G-2 | |
Offering price (in dollars per share) | $ 11 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Jan. 31, 2022 | |
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, USA with 17 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 | 12 Months Ended |
Jan. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and include the consolidated accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated. The Company has made certain reclassifications of prior year balances to conform to current fiscal year presentation. Immaterial Corrections to Prior Periods In the fourth quarter of fiscal year 2022, the Company identified immaterial corrections to prior periods related to capitalized costs to obtain customer contracts in connection with the adoption of ASC 606, Revenue from Contracts with Customers and the ongoing monitoring of costs to obtain customer contracts considered for capitalization . The Company has evaluated the effects of these corrections on the previously issued consolidated financial statements, individually and in the aggregate, in accordance with the guidance in ASC Topic 250, Accounting Changes and Error Corrections , ASC Topic 250-10-S99-1, Assessing Materiality , and ASC Topic 250-10-S99-2, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements . Although the Company has concluded such corrections to be immaterial to its previously issued financial statements, the cumulative effect would be material if corrected in the current year. Accordingly, the Company has revised the consolidated financial statements for the prior periods presented herein. A summary of the effect of the corrections on the consolidated balance sheet as of January 31, 2021 is as follows (in thousands): January 31, 2021 As reported Corrections As Adjusted Assets Prepaid expenses and other current assets $ 95,819 $ 5,277 $ 101,096 Total current assets 492,786 5,277 498,063 Other non-current assets 36,669 5,843 42,512 Total assets $ 585,893 $ 11,120 $ 597,013 Stockholders' deficit Accumulated deficit (341,280) 11,120 (330,160) Total stockholders' deficit 182,733 11,120 193,853 Total liabilities and stockholders' deficit $ 585,893 $ 11,120 $ 597,013 A summary of the effect of the corrections on the consolidated statements of operations for the years ended January 31, 2021 and 2020 were as follows (in thousands, except per share data): Year Ended January 31, 2021 2020 As reported Corrections As Adjusted As reported Corrections As Adjusted Operating expenses: Sales and marketing $ 189,011 $ (3,214) $ 185,797 $ 163,360 $ 634 $ 163,994 Total operating expenses 293,639 (3,214) 290,425 236,012 634 236,646 Operating loss (28,791) 3,214 (25,577) (34,895) (634) (35,529) Loss before provision for income taxes (37,407) 3,214 (34,193) (35,822) (634) (36,456) Net loss (41,184) 3,214 (37,970) (39,147) (634) (39,781) Net loss attributable to Sprinklr (41,184) 3,214 (37,970) (39,120) (634) (39,754) Net loss attributable to Sprinklr common stockholders $ (41,784) $ 3,214 $ (38,570) $ (39,120) $ (634) $ (39,754) Net loss per share attributable to Class A and Class B stockholders, basic and diluted $ (0.46) $ 0.04 $ (0.42) $ (0.46) $ (0.01) $ (0.47) A summary of the effect of the corrections on the consolidated statements of cash flows for the years ended January 31, 2021 and 2020 were as follows (in thousands): Year Ended January 31, 2021 2020 As reported Corrections As Adjusted As reported Corrections As Adjusted Net loss attributable to Sprinklr $ (41,184) $ 3,214 $ (37,970) $ (39,120) $ (634) $ (39,754) Net loss (41,184) 3,214 (37,970) (39,147) (634) (39,781) Changes in operating assets and liabilities Prepaid expenses and other current assets (27,863) (846) (28,709) (22,564) 217 (22,347) Other non-current assets (4,714) (2,368) (7,082) (10,298) 417 (9,881) For all periods in which the Company corrected net loss, the Company made corresponding corrections to net loss and comprehensive loss in the consolidated statements of comprehensive loss and to net loss, accumulated deficit and total stockholders’ (deficit) equity in the consolidated statements of stockholders’ (deficit) equity. In addition, a summary of the effect of the correction to the cumulative effect of adoption of ASC 606 presented within the consolidated statements of stockholders’ (deficit) equity is as follows (in thousands): Year Ended January 31, 2020 As reported Correction As Adjusted Cumulative effect of adoption of ASC 606 $ 23,340 $ 8,540 $ 31,880 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 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, revenue recognition, common stock valuations and stock-based compensation expense, software costs eligible for capitalization, income taxes, 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. 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. Foreign Currency The functional currency of the Company’s foreign subsidiaries is generally their respective local currency. Assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars at the exchange rates in effect at the balance sheet dates, with the resulting translation adjustments recorded to a separate component of accumulated other comprehensive loss. Income and expense accounts are translated at average exchange rates during the year. Foreign currency remeasurement and transaction gains and losses are recorded in other income, net, in the consolidated statements of operations. The Company recognized net foreign currency transaction losses of $1.4 million, $2.2 million and $1.2 million in the fiscal years ended January 31, 2022, 2021 and 2020, respectively. Cash Equivalents The Company considers all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents. Marketable Securities The Company's marketable securities consist of U.S. Treasury securities, corporate bonds, money market funds, agency securities, commercial paper, certificates of deposit, and time deposits with maturity dates of more than three months from the date of purchase. The Company determined the appropriate classification of marketable securities at the time of purchase and reevaluate such designation at each balance sheet date. The Company classified and accounted for its marketable securities as available-for-sale securities as the Company may sell these securities at any time for use in the current operation or for other purposes, even prior to maturity. As a result, the Company classified marketable securities as current assets in the consolidated balance sheets. All marketable securities are recorded at their estimated fair values. Premiums and discounts are amortized or accreted over the life of the related available-for-sale security as an adjustment to yield. Interest income is recognized when earned. Unrealized gains and losses on these marketable securities are reported as a separate component of accumulated other comprehensive loss on the consolidated balance sheets until realized. Realized gains and losses are determined based on the specific identification method and are reported in other expense, net in the consolidated statements of operations. The Company periodically evaluates its marketable to assess whether those with unrealized loss positions are other than temporarily impaired. The Company considers various factors in determining whether to recognize an impairment charge. If the Company determines that the decline in an investment's fair value is other-than-temporary, the difference is recognized as an impairment loss in the consolidated statements of operations. As of January 31, 2022 and 2021, the Company has not recorded any other-than-temporary impairment charges in its consolidated statements of operations. Fair Values Measurement The Company considers the carrying amounts of financial instruments, including cash, accounts receivable, accounts payable, and accrued expenses to approximate their fair values because of their relatively short maturities. The Company measures certain financial assets at fair value based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. The Company evaluates these inputs and recognizes transfers between levels, if any, at the balance sheet date. The Company has not elected the fair value measurement option for assets not required to be measured at fair value on a recurring basis. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at invoiced amounts, net of allowance for doubtful accounts, if applicable, and are unsecured and do not bear interest. The allowance for doubtful accounts is based on the probability of future collection. When management becomes aware of circumstances that may decrease the likelihood of collection, it records a specific allowance against amounts due, which reduces the receivable to an amount that management reasonably believes will be collected. For all other customers, management determines the adequacy of the allowance based on historical loss patterns, the number of days that billings are past due and an evaluation of the potential risk of loss associated with specific accounts. The Company reviews its allowance for doubtful accounts regularly and writes off receivable balances that are deemed to be uncollectible. Changes in the allowance are recorded in sales and marketing expense in the period incurred. The Company does not have any off balance sheet credit exposure related to its customers. Property and Equipment Property and equipment, including leasehold improvements, are stated at cost, less accumulated depreciation and amortization. Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the asset, which is generally two The Company capitalizes qualifying internally developed software costs incurred in connection with the Company's internal-use software platform. These capitalized costs are related to the cloud-based software platform that the Company hosts, which is accessed by its clients on a subscription basis. Costs are capitalized during the application development stage, provided that management with the relevant authority authorizes and commits to the funding of the software project, it is probable the project will be completed, the software will be used to perform the functions intended and certain functional and quality standards have been met. Capitalized internal-use software costs are amortized on a straight-line basis over their estimated useful life, which is generally three years. Costs incurred for specific upgrades and enhancements when it is probable the expenditures will result in additional functionality are capitalized and amortized over the estimated useful life of the enhancements. Costs related to preliminary project activities and post-implementation operations activities, including training and maintenance, are expensed as incurred. Business Combinations When the Company acquires businesses, it allocates the purchase price to tangible assets, liabilities and identifiable intangible assets acquired with any residual purchase price recorded as goodwill. The allocation of the purchase price requires management to make significant estimates in determining the fair values of assets acquired and liabilities assumed, particularly with respect to intangible assets at the acquisition date, deferred revenue and contingent consideration, where applicable. These estimates can include, but are not limited to, historical experience and information obtained from the management of the acquired companies, the cash flows that an asset is expected to generate in the future, the weighted average cost of capital and the cost savings expected to be derived from acquiring an asset. These estimates are inherently uncertain and unpredictable and unanticipated events and circumstances may occur which could affect the accuracy or validity of such estimates. Goodwill Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in connection with business combinations accounted for using the purchase method of accounting. Goodwill is not amortized, but rather is tested for impairment annually and more frequently upon the occurrence of certain events. The Company performs its annual impairment test of goodwill in the fourth quarter of each fiscal year, using November 1 carrying values, or whenever events or circumstances indicate that goodwill may not be recoverable. Triggering events that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate or a significant decrease in expected cash flows. In performing its impairment test, the Company first assesses qualitative factors to determine whether it is more-likely-than-not that the fair value of the reporting unit is less than its carrying value. In performing the qualitative assessment, the Company reviews factors such as financial performance, macroeconomic conditions, industry and market considerations. If the Company elects this option and believes, as a result of the qualitative assessment, that it is more-likely-than-not that the carrying value of the reporting unit exceeds the fair value, the quantitative impairment test is required; otherwise, no further testing is required. Alternatively, the Company may elect to bypass the qualitative assessment and perform the quantitative impairment test instead, or if the Company reasonably determines that it is more-likely-than-not that the fair value is less than the carrying value, the Company performs its annual, or interim, goodwill impairment test by comparing the fair value of the reporting unit with the carrying amount. The Company will recognize an impairment for the amount by which the carrying amount exceeds the reporting unit's fair value. The Company did not record any goodwill impairment charges in the years ended January 31, 2022, 2021 or 2020. Impairment of Long-Lived Assets The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its long-lived assets, including property, equipment, capitalized internal-use software and other assets, including identifiable definite-lived intangible assets, may not be recoverable. When such events or changes in circumstances occur, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through their undiscounted expected future cash flow. If the future undiscounted cash flow is less than the carrying amount of these assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. If the useful life is shorter than originally estimated, the Company amortizes the remaining carrying value over the new shorter life. 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. No single customer accounted for more than 10% of total revenue in the years ended January 31, 2022, 2021 or 2020. In addition, no single customer accounted for more than 10% of total accounts receivable as of January 31, 2022 or 2021. In addition, the Company relies upon third-party hosted infrastructure partners globally, including Amazon Web Services, to serve customers and operate certain aspects of our 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 The Company accounts for revenue in accordance with 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. Costs of Revenue Costs of subscription revenue and professional services revenue is expensed as incurred. Costs of subscription revenue consists primarily of expenses related to hosting the Company’s software platform, including data center operations costs and personnel and related expenses directly associated with delivering the Company’s cloud infrastructure, the costs associated with purchasing third-party data that is utilized in providing elements of the platform and costs to provide platform support to the Company’s customers, including personnel and related expenses. These costs include salaries, benefits, bonuses, stock-based compensation, as well as allocated overhead. Costs of professional services consists primarily of personnel and related expenses directly associated with the Company’s professional services organization. These costs include salaries, benefits, bonuses, stock-based compensation, as well as allocated overhead, together with the costs of subcontracted third-party professional services vendors. Overhead associated with facilities and depreciation is allocated to cost of revenue based on relative headcount in those departments. Research and Development Research and development expenses consist primarily of costs relating to the maintenance, continued development and enhancement of the Company’s cloud-based software platform and include personnel-related expenses for our research and development organization, professional fees, travel expenses and allocated overhead expenses, including facilities costs. Research and development expenses are expensed as incurred, except for internal-use software development costs that qualify for capitalization. Advertising costs Advertising costs include costs incurred to promote the Company’s subscription and professional services. These costs are expensed as incurred and were $6.8 million, $0.2 million and $0.3 million in the years ended January 31, 2022, 2021 and 2020, respectively. Warranties The Company’s cloud-based software platform is generally warranted to perform materially in accordance with the Company’s online documentation and the terms of the agreement with a customer, under normal use and circumstances. Additionally, our contracts generally include provisions for indemnifying customers against liabilities if use of our software platform infringe a third party’s intellectual property rights, and we may also incur liabilities if we breach the security, privacy and/or confidentiality obligations in our contracts. To date, we have not incurred any material costs, and we have not accrued any liabilities in the accompanying consolidated financial statements as of January 31, 2022 or 2021, as a result of these obligations. Certain of the Company’s arrangements may include certain service level agreements with its customers committing to certain levels of platform uptime and performance and permitting those customers to receive credits in the event that the Company fails to meet those levels. To date, the Company has not incurred or experienced any significant failures to meet defined levels of availability and performance of those agreements and, as a result, the Company has not accrued any liabilities related to such obligations in the accompanying consolidated financial statements as of January 31, 2022 or 2021. 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 grand 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 was satisfied upon the occurrence of a qualifying event, which was 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. Income Taxes The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. Management makes estimates, assumptions and judgements to determine the Company’s provision for or benefit from income taxes, deferred tax assets and liabilities and any valuation allowances recorded against the Company’s deferred tax assets. The Company also assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent that the Company believes that recovery is not more likely than not, the Company will establish a valuation allowance. Recently Issued Accounting Pronouncements Not Yet Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“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 (“ROU”) 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. The Company adopted this standard on February 1, 2022. Upon adoption, the Company elected the package of transition practical expedients which allowed us to carry forward prior conclusions related to: (i) whether any expired or existing contracts are or contain leases; (ii) the classification for any expired or existing leases; and (iii) initial direct costs for existing leases. Additionally, the Company elected the practical expedient of not separating lease components from non-lease components for all asset classes. The Company also made an accounting policy election to not record ROU assets or lease liabilities for leases with an initial term of 12 months or less and will recognize payments for such leases in our Consolidated statement of comprehensive income (loss) on a straight-line basis over the lease term. The Company recorded lease liabilities and corresponding ROU assets of approximately $14 million upon adoption of this standard. 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 No. 2020-06, Debt- Debt with Conversion Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40) (ASU No. 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 470-20 and 815-40. ASU No. 2020-06 will be effective for annual reporting periods beginning after December 15, 2021. The Company does not anticipate an impact to the consolidated financial statements as a result of the adoption. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Jan. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company derives its revenues primarily from two sources: • 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 • 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 January 31, 2022 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 January 31, 2022. 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 it provides 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 that 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. 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 SSP is the price at which the Company would sell promised subscription or professional services separately to a customer. The determination of SSP for each distinct performance obligation requires judgement. The Company determines SSP based on its overall pricing objective, taking into consideration contractually stated prices, size of the arrangement, market conditions, costs, renewal contracts, list prices, internal discounting tables and other observable and unobservable inputs. 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 January 31, 2022 were $83.0 million, of which $40.7 million is included in prepaid expenses and other current assets and $42.3 million within other non-current assets. Capitalized costs to obtain customer contracts as of January 31, 2021 were $60.8 million, of which $29.6 million is included in prepaid expenses and other current assets and $31.2 million within other non-current assets. During the years ended January 31, 2022, 2021 and 2020, the Company amortized $35.5 million, $26.6 million and $20.7 million, respectively, of costs to obtain customer contracts, included in sales and marketing expense. The prior period amounts reflect immaterial corrections related to capitalized costs to obtain customer contracts. Refer to Note 2, Basis of Presentation and Summary of Significant Accounting Policies for more information regarding immaterial corrections to prior periods. 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 non-current deferred revenue. The Company recognized revenue of $216.4 million, $180.0 million and $129.0 million during the years ended January 31, 2022, 2021 and 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 January 31, 2022 and 2021, contract assets were $3.2 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 January 31, 2022, the Company’s remaining performance obligations were $586.4 million, approximately $409.2 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 region, as it believes that 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 | 12 Months Ended |
Jan. 31, 2022 | |
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 consolidated balance sheets (in thousands): January 31, 2022 Amortized Cost Unrealized Gain Unrealized Losses Fair value Corporate bonds $ 124,639 $ 1 $ (163) $ 124,477 U.S. government and agency securities 37,725 — (35) 37,690 Commercial paper 48,818 — (2) 48,816 Marketable securities $ 211,182 $ 1 $ (200) $ 210,983 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 January 31, 2022 and 2021, the maturities of available-for-sale marketable securities did not exceed 12 months. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Measurements The following tables present information about the Company’s financial assets that have been measured at fair value on a recurring basis as of January 31, 2022 and 2021, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): January 31, 2022 January 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial Assets: Cash Equivalents: Money market funds $ 281,091 $ — $ — $ 281,091 $ 37,451 $ — $ — $ 37,451 Marketable Securities: Corporate bonds — 124,477 — 124,477 — 26,892 — 26,892 U.S. government and agency securities — 37,690 — 37,690 — 125,824 — 125,824 Commercial paper — 48,816 — 48,816 — 59,936 — 59,936 Total financial assets $ 281,091 $ 210,983 $ — $ 492,074 $ 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 January 31, 2022 and 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 January 31, 2022 and 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 | 12 Months Ended |
Jan. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Balance Sheet Components | Balance Sheet ComponentsPrepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): January 31, January 31, Prepaid hosting and data costs $ 46,513 $ 58,386 Prepaid software costs 5,765 3,771 Capitalized commissions costs, current portion (1) 40,695 29,571 Prepaid insurance 2,118 289 Contract assets 3,161 824 Other 10,915 8,255 Prepaid expenses and other current assets $ 109,167 $ 101,096 (1) The prior period amount reflects an immaterial correction related to capitalized costs to obtain customer contracts. Refer to Note 2, Basis of Presentation and Summary of Significant Accounting Policies for more information regarding immaterial corrections to prior periods. Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): January 31, January 31, Computer equipment 13,544 7,921 Office furniture and other 1,256 1,193 Leasehold improvements 3,930 3,500 Less accumulated depreciation and amortization (12,433) (8,598) Total fixed assets, net 6,297 4,016 Capitalized internal-use software 23,065 16,224 Less accumulated amortization (14,657) (11,229) Total capitalized internal-use software $ 8,408 $ 4,995 Property and equipment, net $ 14,705 $ 9,011 Depreciation and amortization expense for property and equipment was $4.2 million, $2.5 million and $2.0 million in the years ended January 31, 2022, 2021 and 2020, respectively. Amortization expense for capitalized internal-use software was $3.4 million, $2.5 million and $2.3 million in the years ended January 31, 2022, 2021 and 2020, respectively. The Company capitalized internal-use software costs, including stock-based compensation, of $7.0 million, $3.8 million and $2.5 million in the years ended January 31, 2022, 2021 and 2020, respectively. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): January 31, January 31, Bonuses $ 22,622 $ 17,783 Employee liabilities (1) 21,668 15,040 Commissions 16,496 13,346 Accrued litigation settlement (2) 12,000 — Accrued sales and use tax liability 6,935 5,667 Accrued income taxes 2,559 677 Purchased media costs (3) 3,227 2,695 Professional services 1,062 1,603 Other 13,651 6,359 $ 100,220 $ 63,170 (1) Includes $2.3 million of accrued ESPP employee contributions at January 31, 2022. Refer to Note 10, Stock-Based Compensation, for further discussion of the Company's ESPP. (2) On February 25, 2022, the Company and Opal Labs Inc. (“Opal”) agreed to settle all outstanding claims with respect to Opal's complaints alleging breach of contract and violation of Oregon’s Uniform Trade Secrets Act, among other claims. Refer to Note 9, Commitments and Contingencies. (3) 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 | 12 Months Ended |
Jan. 31, 2022 | |
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): January 31, January 31, Balance at beginning of period $ 46,823 $ 47,100 Business combination 3,023 — Effect of exchange rates 65 (277) Balance at end of period $ 49,911 $ 46,823 |
Debt
Debt | 12 Months Ended |
Jan. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | DebtThere was no long-term debt outstanding as of January 31, 2022. 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 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 $75.0 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 $150.0 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. At the option of the holders, the Notes were convertible into common stock of the Company at a specified price. 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. The Notes were subject to automatic conversion features upon the occurrence of a liquidity event, including an IPO, as well as optional conversion feature at the option of the holders. The Notes would convert at a specified price as defined within the Note Purchase Agreement. The Company accounted for the Notes in accordance with ASC 470-20, Debt with Conversion and Other Options , ASC 815, Derivatives and Hedging , and ASC 480, Distinguishing Liabilities from Equity . The Company evaluated the Notes at inception to determine if there were any embedded components that qualified as derivatives to be separately accounted for. The Company’s Initial Notes are deemed to be a conventional convertible debt that may only be settled with common shares. Therefore, the Initial Notes were classified as debt, net of any discounts or issuance costs, on the Consolidated Balance Sheets. As of January 31, 2021, the total estimated fair value of the Initial Notes was approximately $86.4 million. 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 years ended January 31, 2022, 2021 and 2020 (in thousands): Year Ended January 31, 2022 2021 2020 Interest expense at coupon rate $ 3,182 $ 5,390 $ — Amortization of debt discounts and issuance costs 84 133 — Total interest expense $ 3,266 $ 5,523 $ — 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 consolidated statement of operations. Credit Agreement The Company maintains a credit agreement with Silicon Valley Bank (the “SVB Credit Facility”). Under the terms of the SVB Credit Facility, the Company can borrow up to $50.0 million on its revolving credit loan facility at the higher of prime interest rate plus 0.25% or federal funds effective rate plus 0.50% plus 0.25%. The SVB Credit Facility, which expires on June 21, 2022, requires the Company to maintain certain monthly adjusted quick ratio and quarterly minimum consolidated adjusted earnings before income taxes, depreciation and amortization. In addition, the SVB Credit Facility also provides for issuance of letters of credit that reduce the available borrowing capacity, which the Company had approximately $0.7 million of issued but unused letters of credit as of January 31, 2022. As of January 31, 2022 and 2021, the Company had no amounts outstanding under the SVB Credit Facility. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2022 | |
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 2027. 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 January 31, 2022 was $1.8 million, $0.6 million of which was recorded in accrued expenses and other current liabilities and $1.2 million of which was recorded in other liabilities, long-term in the 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 consolidated balance sheets. Rent expense under these operating leases was $7.4 million, $7.2 million and $6.4 million in years ended January 31, 2022, 2021 and 2020, respectively. At January 31, 2022, the Company had no capital leases. Future minimum lease payments under non-cancelable operating leases were as follows (in thousands): Fiscal year ended January 31, 2023 $ 9,676 2024 8,036 2025 3,165 2026 2,034 2027 and thereafter 1,726 Total $ 24,637 Letters of Credit As of January 31, 2022, the Company has an aggregate availability of $0.7 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 January 31, 2022. No 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, 2022 as follows (in thousands): Fiscal year ended January 31, 2023 $ 22,137 2024 71,314 2025 58,859 2026 4,000 2027 and thereafter — Total $ 156,310 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 may also 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 damages amounts 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 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 | 12 Months Ended |
Jan. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock During the year ended January 31, 2021, the Company amended its Certificate of Incorporation to increase the total number of shares of all classes of stock which the Company shall have authority to issue to 299,000,000 share of Common Stock, $0.00003 par value per share and 122,309,253 shares of Preferred Stock, $0.00003 par value per share. 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 fiscal year 2021, the Company closed on a private placement and issuance of 10,800,000 shares of its Series G-1 convertible preferred stock (the “Series G-1”) at a price per share of $9.25 and 9,100,000 shares of its Series G-2 convertible preferred stock (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 consolidated balance sheet. The following table summarizes convertible preferred stock authorized, issued and outstanding, aggregate liquidation preference and the aggregate maximum participation amount as of January 31, 2021: Series Shares authorized Shares issued and outstanding Net proceeds Aggregate liquidation preference Aggregate maximum participation amount (in thousands) (in thousands) (in thousands) A 26,000,001 26,000,001 $ 5,170 $ 5,200 $ — B 28,928,898 28,928,898 14,888 15,000 15,000 C 11,441,559 11,441,559 17,468 17,500 17,500 D 13,465,443 13,465,443 39,943 40,000 40,000 D-2 5,557,644 5,557,644 30,000 30,000 39,000 E-1 4,347,942 4,276,602 22,303 25,817 25,817 E-2 975,114 947,341 3,659 7,768 7,768 F 11,690,933 10,383,066 105,074 105,250 105,250 G-1 10,810,810 10,810,810 95,876 100,000 100,000 G-2 9,090,909 9,090,909 95,876 100,000 100,000 122,309,253 120,902,273 $ 430,257 $ 446,535 $ 450,335 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 | 12 Months Ended |
Jan. 31, 2022 | |
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 January 31, 2022, there were 38,857,443 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 and market conditions are met. Following an IPO, the market conditions on the PSUs will be achieved 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 a 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 was 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 was fully or partially satisfied. The remaining stock-based compensation expense 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 year ended January 31, 2022 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 (9,421) 2.14 Cancelled/forfeited (3,317) 8.44 Expired (3) 4.93 Balance as of January 31, 2022 44,355 $ 6.23 7.8 $ 226,504 Exercisable as of January 31, 2022 21,037 $ 4.52 7.1 $ 141,591 Vested and expected to vest as of January 31, 2022 37,772 $ 5.81 7.6 $ 207,795 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the Company’s share price of $11.25 and $9.07 as of January 31, 2022 and 2021, respective 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: Year Ended January 31, 2022 2021 2020 Weighted average grant date fair value of options granted $ 5.58 $ 2.96 $ 2.09 Total intrinsic value of options exercised (in thousands) $ 83,387 $ 51,952 $ 3,660 The total estimated grant date fair value of options vested in the years ended January 31, 2022, 2021 and 2020 was $29.3 million, $14.9 million and $7.9 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: Year Ended January 31, 2022 2021 2020 Expected term (in years) 6.0 6.1 6.0 Risk-free interest rate 0.9% - 1.4% 0.3% - 0.8% 1.3% - 2.5% Expected volatility 50.9% - 52.1% 42.3% - 45.5% 41.9% - 42.8% Expected dividend rate 0% 0% 0% Fair value of common stock $10.96 - $14.02 $4.93 - $9.07 $4.25 - $4.45 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 any cash dividends and does not anticipate paying 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 1,443 15.86 Released (150) 3.64 Cancelled/forfeited (13) 17.28 Balance as of January 31, 2022 1,730 $ 14.67 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 Class A and Class B 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 share reserved and available for issuance under ESPP automatically increased by 2,562,692 on January 1, 2022. 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, subject to a reset provision. If the fair market value of the Company's stock on the offering date is lower than the fair market value of the Company's stock on the last day of any applicable purchase period, participants will be withdrawn from the ongoing offering period and automatically be enrolled in the subsequent offering period, resulting in modification accounting. The first offering period commenced on June 23, 2021 and was scheduled to end on the first trading day on or before June 15, 2022. During the fourth quarter of fiscal year 2022, the fair market value of the Company's stock on the purchase date, December 15, 2021, was lower than the fair market value of the Company's stock on the offering date of the first offering period. As a result, the first offering period was reset and the new lower price became the new offering price for a new 12 months offering period. This reset was treated as a modification resulting in incremental charges totaling $3.4 million, which will be recognized over the remaining requisite service period. ESPP employee payroll contributions accrued as of January 31, 2022 totaled $2.3 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 $6.1 million during the year ended January 31, 2022 in connection with the ESPP. The fair value of the share purchase rights granted under the ESPP during the year ended January 31, 2022 was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: Year Ended January 31, 2022 Expected term (in years) 0.5 - 1.0 Risk-free interest rate 0.1% - 0.3% Expected volatility 49.3% - 57.0% Expected dividend rate 0% Fair value of common stock $14.27 - $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 during the year ended January 31, 2022 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. Secondary Stock Sale In October 2020, in connection with the sale of the Series G convertible preferred stock, the purchasers of the Series G convertible preferred stock facilitated a secondary stock sale to purchase 9,707,427 shares of common stock from certain eligible employees for $9.25 per share for an aggregate purchase price of $89.8 million. The Company recognized stock-based compensation of $16.3 million in connection with the sale, which represented the difference between the purchase price and the estimated fair value of the common stock on the date of the sale. Tender Offer Transaction In November 2020, the Company, the purchasers of the Series G convertible preferred stock and other existing investors commenced a tender offer to acquire 5,974,776 shares of convertible preferred stock and 3,303,891 shares of common stock from employees and from certain existing and former employees and other existing investors. In connection with the tender offer, we waived any rights of first refusal or other transfer restrictions applicable to such shares. The shares were repurchased from the stockholders at a purchase price of $9.25 per share. As a result of this transaction, the Company recognized $0.6 million as deemed dividends as a reduction to stockholders' deficit in relation to the excess of the selling price of convertible preferred stock paid to the existing investors over the original issuance price paid by investors of the shares tendered, and $5.2 million of share-based compensation expense for the difference between the price paid for shares held by our employees and former employee stockholders and the estimated fair market value on the date of the transaction. Stock-Based Compensation Expense Stock-based compensation expense included in operating results was allocated as follows (in thousands): Year Ended January 31, 2022 2021 2020 Cost of subscription $ 1,794 $ 2,012 $ 156 Cost of professional 2,448 1,658 357 Research and development 6,417 4,804 1,430 Sales and marketing 19,929 14,976 4,173 General and administrative 19,543 21,619 4,050 Stock-based compensation, net of amounts capitalized 50,131 45,069 10,166 Capitalized stock-based compensation 696 — — Total stock-based compensation $ 50,827 $ 45,069 $ 10,166 Year Ended January 31, 2022 2021 2020 Equity classified awards (1) $ 49,827 $ 44,159 $ 10,166 Other awards (2) 1,000 910 — Total stock-based compensation $ 50,827 $ 45,069 $ 10,166 (1) Expense associated with equity-classified awards includes $6.1 million of ESPP expense recognized during the year ended January 31, 2022. For the year ended January 31, 2021, it includes $16.3 million recognized in connection with the secondary stock sale and $5.2 million recognized in connection with the tender offer transaction. (2) Non-employee 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 January 31, 2022, total unrecognized compensation cost related to unvested awards not yet recognized under all equity compensation plans, adjusted for estimated forfeitures, was as follows: January 31, 2022 Unrecognized expense Weighted average expense recognition period (in thousands) (in years) Stock options $ 44,126 2.8 Performance share units 2,736 3.1 Restricted stock units 12,303 3.5 ESPP 9,235 0.9 |
Net (Loss) Income Per Share
Net (Loss) Income Per Share | 12 Months Ended |
Jan. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income Per Share | Net Loss Per ShareThe 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 net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is using the treasury stock and method, which consider the potential impacts of outstanding stock options, RSUs, warrants, and convertible preferred stock. Under these methods, the numerator and denominator of the net loss per share calculation are adjusted for these securities if the impact of doing so increases 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): Year Ended January 31, 2022 2021 2020 Numerator: Net loss $ (111,470) $ (37,970) $ (39,781) Net loss attributable to redeemable noncontrolling interests — — 27 Net loss attributable to Sprinklr (111,470) (37,970) (39,754) Deemed dividend in relation to tender offer — (600) — Net loss attributable to Sprinklr common stockholders (111,470) (38,570) (39,754) Denominator: Weighted-average shares outstanding used in computing net loss per share attributable to Sprinklr common stockholders - basic and diluted 195,020 90,378 84,343 Net income loss per Sprinklr common stockholders - basic and diluted $ (0.57) $ (0.42) $ (0.47) Because the Company was in a loss position for the periods presented, basic net loss per share is the same as diluted net loss per share as the inclusion of all potential common shares outstanding would have been anti-dilutive. Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows (in thousands): Year Ended January 31, 2022 2021 2020 Convertible Preferred Stock — 120,902 102,408 Options to purchase common stock 44,355 46,455 43,752 Convertible note — 8,653 — Performance share units 3,175 3,100 — Restricted stock units 1,730 450 300 ESPP 205 — — Deferred stock compensation plan — 1,217 — Warrants to purchase common stock 2,500 2,731 231 Total shares excluded from net loss per share 51,965 183,508 146,691 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe domestic and foreign component of the loss before provision for income taxes was as follows (in thousands): Year Ended January 31, 2022 2021 2020 Domestic $ (123,956) $ (39,957) $ (43,461) Foreign 19,402 5,764 7,005 Total $ (104,554) $ (34,193) $ (36,456) The provision for income taxes consisted of the following (in thousands): Year Ended January 31, 2022 2021 2020 Current tax provision Federal $ — $ — $ (11) State 67 102 38 Foreign 6,987 3,785 3,330 7,054 3,887 3,357 Deferred tax expense (benefit) Federal $ 88 $ 85 $ 76 State 92 99 (98) Foreign (318) (294) (10) (138) (110) (32) Total provision for income taxes 6,916 3,777 3,325 A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective tax rate was as follows: Year Ended January 31, 2022 2021 2020 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % Effect of: State taxes, net of U.S. federal benefit 2.8 0.2 3.1 Foreign taxes in excess of the U.S. rate differential (1.8) (1.1) (3.2) Non-deductible expenses (8.7) (23.0) (6.5) Changes in valuation allowance (23.9) (16.1) (22.3) Excess tax benefits related to shared based compensation 4.8 10.9 2.2 Other (0.8) (3.0) (3.4) (6.6) % (11.1) % (9.1) % Deferred Tax Assets and Liabilities The components of deferred tax assets and liabilities were as follows (in thousands): January 31, 2022 2021 Deferred tax assets: Net operating loss carryforward $ 105,753 $ 75,304 Accrued expenses 2,003 1,643 Accrued commissions 718 464 Depreciation and amortization 613 787 Allowance for doubtful accounts 656 601 Deferred revenue 4,821 7,430 Stock-based compensation 7,068 3,932 Other 686 540 Total deferred tax assets $ 122,318 $ 90,701 Less valuation allowance (98,093) (73,299) Deferred tax assets, net of valuation allowance $ 24,225 $ 17,402 Deferred tax liabilities Depreciation and amortization (3,566) (2,496) Capitalized commission costs (20,182) (14,801) Other (287) (20) Total deferred tax liabilities $ (24,035) $ (17,317) Net deferred tax assets (liabilities) $ 190 $ 85 The income tax disclosures presented above as of January 31, 2021 and for the years ended January 31, 2021 and 2020 have been revised in connection with the immaterial corrections disclosed in Note 2, Basis of Presentation and Summary of Significant Accounting Policies. At January 31, 2022, for U.S. federal income tax purposes, the Company had net operating loss carryforwards of approximately $395.4 million, which expire in fiscal 2032 through fiscal 2038. The U.S. federal net operating losses generated after December 31, 2017 do not expire and may be carried forward indefinitely. For U.S. states income tax purposes, the Company had net operating loss carryforwards of approximately $287.1 million, which expire in various years beginning from fiscal 2022 through fiscal 2042. For foreign income tax purposes, the Company had net operating loss carryforwards of approximately $14.7 million which expire beginning fiscal 2024. Utilization of the Company’s net operating loss carryforwards may be subject to an annual limitation as a result of an ownership change, as defined under the provisions of Section 382 of the Code and similar state provisions. Such an annual limitation could result in the expiration of the net operating loss carryforwards before utilization. Utilization of the Company’s foreign NOL carryforwards in the future will be dependent upon the local tax law and regulation. The Company had a valuation allowance of $98.1 million and $73.3 million as of January 31, 2022 and 2021, respectively. The Company regularly evaluates the need for a valuation allowance against its deferred tax assets by considering both positive and negative evidence related to whether it is more likely than not that our deferred tax assets will be realized. Based on the weight of the available evidence, which includes the Company’s historical operating losses, and lack of taxable income, the Company provided a full valuation allowance against the deferred tax assets for the U.S. and certain international entities. The Company has not recorded deferred income taxes and withholding taxes with respect to the undistributed earnings of its foreign subsidiaries as such earnings are determined to be reinvested indefinitely. If those earnings were repatriated, in the form of dividends or otherwise, the Company could be subject to U.S. income taxes and withholding taxes to the various foreign countries. As of January 31, 2022, the Company had $48.9 million of earnings indefinitely reinvested outside of the U.S. Due to complexities in the laws of the foreign jurisdictions and the assumptions that would have to be made, it is not practicable to estimate the amount of tax associated with such unremitted earnings. Unrecognized Tax Benefits and Other Considerations The Company records liabilities related to its uncertain tax positions. The Company recognizes the tax benefit of an uncertain tax position only if it is more likely than not that the position is sustainable upon examination by the taxing authority, based on the technical merits. The tax benefit recognized is measured as the largest amount of benefit which is greater than 50 percent likely to be realized upon settlement with the taxing authority. The Company records interest and penalties related to unrecognized tax benefits within the Company’s provision for income taxes. A reconciliation of the beginning and ending balance of total gross unrecognized tax benefits for the year ended January 31, 2022 (in thousands): Year Ended January 31, 2022 Balance at beginning of period $ 568 Tax positions taken during a prior year: Gross increases 1,229 Gross decreases (605) Tax positions taken during the current year: Gross increases 347 Balance at end of period $ 1,539 As of January 31, 2021, the Company had an immaterial balance accrued related to unrecognized tax benefits and did not record additional amounts during the year ended January 31, 2021. The Company recognizes interest and penalties related to income tax matters as a component of income tax expense. In addition, the Company accrued immaterial amounts related to penalties and interest during the years ended January 31, 2022. It is reasonably possible that over the next 12-month period the Company may experience an increase or decrease to certain unrecognized tax benefits due to tax examination changes, settlement activities, expirations of statute of limitations, or other similar activities. Nonetheless, the Company anticipates insignificant changes to unrecognized tax benefits over the next 12 months. The Company is subject to taxation in multiple jurisdictions in the United States and outside of the United States. The Company currently considers U.S. federal, Brazil, France, India, Japan, and the United Kingdom to be major tax jurisdictions. Tax years 2017 and forward remain open for examination for U.S. federal tax purposes and tax years 2018 and forward remain open for examination for the Company's more significant state jurisdictions. To the extent utilized in future years’ tax returns, net operating loss carryforwards from tax years 2012 and onward will remain subject to examination until the respective tax year is closed. Generally, tax authorities outside of the United States may examine the Company’s tax returns five years from the date an income tax return is filed. |
Geographic Information
Geographic Information | 12 Months Ended |
Jan. 31, 2022 | |
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 our cloud based software platform: Year Ended January 31, 2022 2021 2020 Americas $ 312,927 $ 253,689 $ 216,712 EMEA 138,553 100,057 82,773 Other 40,914 33,184 24,791 $ 492,394 $ 386,930 $ 324,276 The United States was the only country that represented more than 10% of the Company's revenues, comprising of $293.1 million, $240.1 million and $204.2 million in the years ended January 31, 2022, 2021 and 2020, respectively. Long-lived assets by geographical region are based on the location of the legal entity that owns the assets. As of January 31, 2022 and 2021, long lived assets by geographic region were as follows: January 31, 2022 2021 Americas (1) $ 10,472 $ 6,135 EMEA 1,551 1,474 Other 2,682 1,402 $ 14,705 $ 9,011 (1) Includes $10.2 million and $6.0 million of fixed assets held in the United States at January 31, 2022 and 2021, respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jan. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company provides benefit plans for its employees in the United States. The Sprinklr 401(k) Plan is available to all regular employees on the Company’s U.S. payroll on the first of the month following the employee’s one-month anniversary of employment. The Sprinklr 401(k) Plan is qualified under Section 401(k) of the Internal Revenue Code and provides employees with tax-deferred salary deductions, up to a maximum allowable limit, and alternative investment options. Employees may contribute up to 90% of their salary up to the statutory prescribed annual limit. Beginning January 1, 2019, the Company matches employee contributions to the Sprinklr 401(k) Plan up to an amount of $1,000 dependent on the Company achieving certain performance goals. The Company’s defined contribution plan in the United Kingdom is available to all employees on the Company’s U.K. payroll in accordance with the U.K. government regulations. Under this plan, employees can defer a percentage of their paycheck to a tax-deferred account. The Company contributes as per the local statutory regulations, the amounts the Company contributed were immaterial during fiscal years ended January 31, 2022, 2021 and 2020. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and include the consolidated accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated. The Company has made certain reclassifications of prior year balances to conform to current fiscal year presentation. Immaterial Corrections to Prior Periods In the fourth quarter of fiscal year 2022, the Company identified immaterial corrections to prior periods related to capitalized costs to obtain customer contracts in connection with the adoption of ASC 606, Revenue from Contracts with Customers and the ongoing monitoring of costs to obtain customer contracts considered for capitalization . The Company has evaluated the effects of these corrections on the previously issued consolidated financial statements, individually and in the aggregate, in accordance with the guidance in ASC Topic 250, Accounting Changes and Error Corrections , ASC Topic 250-10-S99-1, Assessing Materiality , and ASC Topic 250-10-S99-2, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements . Although the Company has concluded such corrections to be immaterial to its previously issued financial statements, the cumulative effect would be material if corrected in the current year. Accordingly, the Company has revised the consolidated financial statements for the prior periods presented herein. A summary of the effect of the corrections on the consolidated balance sheet as of January 31, 2021 is as follows (in thousands): January 31, 2021 As reported Corrections As Adjusted Assets Prepaid expenses and other current assets $ 95,819 $ 5,277 $ 101,096 Total current assets 492,786 5,277 498,063 Other non-current assets 36,669 5,843 42,512 Total assets $ 585,893 $ 11,120 $ 597,013 Stockholders' deficit Accumulated deficit (341,280) 11,120 (330,160) Total stockholders' deficit 182,733 11,120 193,853 Total liabilities and stockholders' deficit $ 585,893 $ 11,120 $ 597,013 A summary of the effect of the corrections on the consolidated statements of operations for the years ended January 31, 2021 and 2020 were as follows (in thousands, except per share data): Year Ended January 31, 2021 2020 As reported Corrections As Adjusted As reported Corrections As Adjusted Operating expenses: Sales and marketing $ 189,011 $ (3,214) $ 185,797 $ 163,360 $ 634 $ 163,994 Total operating expenses 293,639 (3,214) 290,425 236,012 634 236,646 Operating loss (28,791) 3,214 (25,577) (34,895) (634) (35,529) Loss before provision for income taxes (37,407) 3,214 (34,193) (35,822) (634) (36,456) Net loss (41,184) 3,214 (37,970) (39,147) (634) (39,781) Net loss attributable to Sprinklr (41,184) 3,214 (37,970) (39,120) (634) (39,754) Net loss attributable to Sprinklr common stockholders $ (41,784) $ 3,214 $ (38,570) $ (39,120) $ (634) $ (39,754) Net loss per share attributable to Class A and Class B stockholders, basic and diluted $ (0.46) $ 0.04 $ (0.42) $ (0.46) $ (0.01) $ (0.47) A summary of the effect of the corrections on the consolidated statements of cash flows for the years ended January 31, 2021 and 2020 were as follows (in thousands): Year Ended January 31, 2021 2020 As reported Corrections As Adjusted As reported Corrections As Adjusted Net loss attributable to Sprinklr $ (41,184) $ 3,214 $ (37,970) $ (39,120) $ (634) $ (39,754) Net loss (41,184) 3,214 (37,970) (39,147) (634) (39,781) Changes in operating assets and liabilities Prepaid expenses and other current assets (27,863) (846) (28,709) (22,564) 217 (22,347) Other non-current assets (4,714) (2,368) (7,082) (10,298) 417 (9,881) For all periods in which the Company corrected net loss, the Company made corresponding corrections to net loss and comprehensive loss in the consolidated statements of comprehensive loss and to net loss, accumulated deficit and total stockholders’ (deficit) equity in the consolidated statements of stockholders’ (deficit) equity. In addition, a summary of the effect of the correction to the cumulative effect of adoption of ASC 606 presented within the consolidated statements of stockholders’ (deficit) equity is as follows (in thousands): Year Ended January 31, 2020 As reported Correction As Adjusted Cumulative effect of adoption of ASC 606 $ 23,340 $ 8,540 $ 31,880 |
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 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, revenue recognition, common stock valuations and stock-based compensation expense, software costs eligible for capitalization, income taxes, 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. |
Segments | 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. |
Foreign Currency | Foreign CurrencyThe functional currency of the Company’s foreign subsidiaries is generally their respective local currency. Assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars at the exchange rates in effect at the balance sheet dates, with the resulting translation adjustments recorded to a separate component of accumulated other comprehensive loss. Income and expense accounts are translated at average exchange rates during the year. Foreign currency remeasurement and transaction gains and losses are recorded in other income, net, in the consolidated statements of operations |
Cash Equivalents | Cash EquivalentsThe Company considers all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents. |
Marketable Securities | Marketable Securities The Company's marketable securities consist of U.S. Treasury securities, corporate bonds, money market funds, agency securities, commercial paper, certificates of deposit, and time deposits with maturity dates of more than three months from the date of purchase. The Company determined the appropriate classification of marketable securities at the time of purchase and reevaluate such designation at each balance sheet date. The Company classified and accounted for its marketable securities as available-for-sale securities as the Company may sell these securities at any time for use in the current operation or for other purposes, even prior to maturity. As a result, the Company classified marketable securities as current assets in the consolidated balance sheets. |
Fair Value Measurement | Fair Values Measurement The Company considers the carrying amounts of financial instruments, including cash, accounts receivable, accounts payable, and accrued expenses to approximate their fair values because of their relatively short maturities. The Company measures certain financial assets at fair value based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. The Company evaluates these inputs and recognizes transfers between levels, if any, at the balance sheet date. The Company has not elected the fair value measurement option for assets not required to be measured at fair value on a recurring basis. 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 January 31, 2022 and 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 January 31, 2022 and 2021, the Company anticipates that it will recover the entire amortized cost basis of such fixed income securities before maturity. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at invoiced amounts, net of allowance for doubtful accounts, if applicable, and are unsecured and do not bear interest. The allowance for doubtful accounts is based on the probability of future collection. When management becomes aware of circumstances that may decrease the likelihood of collection, it records a specific allowance against amounts due, which reduces the receivable to an amount that management reasonably believes will be collected. For all other customers, management determines the adequacy of the allowance based on historical loss patterns, the number of days that billings are past due and an evaluation of the potential risk of loss associated with specific accounts. The Company reviews its allowance for doubtful accounts regularly and writes off receivable balances that are deemed to be uncollectible. Changes in the allowance are recorded in sales and marketing expense in the period incurred. The Company does not have any off balance sheet credit exposure related to its customers. |
Property and Equipment | Property and Equipment Property and equipment, including leasehold improvements, are stated at cost, less accumulated depreciation and amortization. Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the asset, which is generally two The Company capitalizes qualifying internally developed software costs incurred in connection with the Company's internal-use software platform. These capitalized costs are related to the cloud-based software platform that the Company hosts, which is accessed by its clients on a subscription basis. Costs are capitalized during the application development stage, provided that management with the relevant authority authorizes and commits to the funding of the software project, it is probable the project will be completed, the software will be used to perform the functions intended and certain functional and quality standards have been met. Capitalized internal-use software costs are amortized on a straight-line basis over their estimated useful life, which is generally three years. Costs incurred for specific upgrades and enhancements when it is probable the expenditures will result in additional functionality are capitalized and amortized over the estimated useful life of the enhancements. Costs related to preliminary project activities and post-implementation operations activities, including training and maintenance, are expensed as incurred. |
Business Combinations | Business CombinationsWhen the Company acquires businesses, it allocates the purchase price to tangible assets, liabilities and identifiable intangible assets acquired with any residual purchase price recorded as goodwill. The allocation of the purchase price requires management to make significant estimates in determining the fair values of assets acquired and liabilities assumed, particularly with respect to intangible assets at the acquisition date, deferred revenue and contingent consideration, where applicable. These estimates can include, but are not limited to, historical experience and information obtained from the management of the acquired companies, the cash flows that an asset is expected to generate in the future, the weighted average cost of capital and the cost savings expected to be derived from acquiring an asset. These estimates are inherently uncertain and unpredictable and unanticipated events and circumstances may occur which could affect the accuracy or validity of such estimates. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in connection with business combinations accounted for using the purchase method of accounting. Goodwill is not amortized, but rather is tested for impairment annually and more frequently upon the occurrence of certain events. The Company performs its annual impairment test of goodwill in the fourth quarter of each fiscal year, using November 1 carrying values, or whenever events or circumstances indicate that goodwill may not be recoverable. Triggering events that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate or a significant decrease in expected cash flows. In performing its impairment test, the Company first assesses qualitative factors to determine whether it is more-likely-than-not that the fair value of the reporting unit is less than its carrying value. In performing the qualitative assessment, the Company reviews factors such as financial performance, macroeconomic conditions, industry and market considerations. If the Company elects this option and believes, as a result of the qualitative assessment, that it is more-likely-than-not that the carrying value of the reporting unit exceeds the fair value, the quantitative impairment test is required; otherwise, no further testing is required. Alternatively, the Company may elect to bypass the qualitative assessment and perform the quantitative impairment test instead, or if the Company reasonably determines that it is more-likely-than-not that the fair value is less than the carrying value, the Company performs its annual, or interim, goodwill impairment test by comparing the fair value of the reporting unit with the carrying amount. The Company will recognize an impairment for the amount by which the carrying amount exceeds the reporting unit's fair value. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its long-lived assets, including property, equipment, capitalized internal-use software and other assets, including identifiable definite-lived intangible assets, may not be recoverable. When such events or changes in circumstances occur, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through their undiscounted expected future cash flow. If the future undiscounted cash flow is less than the carrying amount of these assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. If the useful life is shorter than originally estimated, the Company amortizes the remaining carrying value over the new shorter life. |
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. No single customer accounted for more than 10% of total revenue in the years ended January 31, 2022, 2021 or 2020. In addition, no single customer accounted for more than 10% of total accounts receivable as of January 31, 2022 or 2021. In addition, the Company relies upon third-party hosted infrastructure partners globally, including Amazon Web Services, to serve customers and operate certain aspects of our 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 and Cost of Revenue | Revenue Recognition The Company accounts for revenue in accordance with 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. Costs of Revenue Costs of subscription revenue and professional services revenue is expensed as incurred. Costs of subscription revenue consists primarily of expenses related to hosting the Company’s software platform, including data center operations costs and personnel and related expenses directly associated with delivering the Company’s cloud infrastructure, the costs associated with purchasing third-party data that is utilized in providing elements of the platform and costs to provide platform support to the Company’s customers, including personnel and related expenses. These costs include salaries, benefits, bonuses, stock-based compensation, as well as allocated overhead. Costs of professional services consists primarily of personnel and related expenses directly associated with the Company’s professional services organization. These costs include salaries, benefits, bonuses, stock-based compensation, as well as allocated overhead, together with the costs of subcontracted third-party professional services vendors. Overhead associated with facilities and depreciation is allocated to cost of revenue based on relative headcount in those departments. The Company derives its revenues primarily from two sources: • 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 • 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 January 31, 2022 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 January 31, 2022. 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 it provides 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 that 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. 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 SSP is the price at which the Company would sell promised subscription or professional services separately to a customer. The determination of SSP for each distinct performance obligation requires judgement. The Company determines SSP based on its overall pricing objective, taking into consideration contractually stated prices, size of the arrangement, market conditions, costs, renewal contracts, list prices, internal discounting tables and other observable and unobservable inputs. Costs to Obtain Customer Contracts |
Research and Development | Research and Development Research and development expenses consist primarily of costs relating to the maintenance, continued development and enhancement of the Company’s cloud-based software platform and include personnel-related expenses for our research and development organization, professional fees, travel expenses and allocated overhead expenses, including facilities costs. Research and development expenses are expensed as incurred, except for internal-use software development costs that qualify for capitalization. |
Advertising Costs | Advertising costsAdvertising costs include costs incurred to promote the Company’s subscription and professional services. |
Warranties | Warranties The Company’s cloud-based software platform is generally warranted to perform materially in accordance with the Company’s online documentation and the terms of the agreement with a customer, under normal use and circumstances. Additionally, our contracts generally include provisions for indemnifying customers against liabilities if use of our software platform infringe a third party’s intellectual property rights, and we may also incur liabilities if we breach the security, privacy and/or confidentiality obligations in our contracts. To date, we have not incurred any material costs, and we have not accrued any liabilities in the accompanying consolidated financial statements as of January 31, 2022 or 2021, as a result of these obligations. Certain of the Company’s arrangements may include certain service level agreements with its customers committing to certain levels of platform uptime and performance and permitting those customers to receive credits in the event that the Company fails to meet those levels. To date, the Company has not incurred or experienced any significant failures to meet defined levels of availability and performance of those agreements and, as a result, the Company has not accrued any liabilities related to such obligations in the accompanying consolidated financial statements as of January 31, 2022 or 2021. |
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 grand 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 was satisfied upon the occurrence of a qualifying event, which was 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. |
Income Taxes | Income Taxes The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. Management makes estimates, assumptions and judgements to determine the Company’s provision for or benefit from income taxes, deferred tax assets and liabilities and any valuation allowances recorded against the Company’s deferred tax assets. The Company also assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent that the Company believes that recovery is not more likely than not, the Company will establish a valuation allowance. |
Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“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 (“ROU”) 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. The Company adopted this standard on February 1, 2022. Upon adoption, the Company elected the package of transition practical expedients which allowed us to carry forward prior conclusions related to: (i) whether any expired or existing contracts are or contain leases; (ii) the classification for any expired or existing leases; and (iii) initial direct costs for existing leases. Additionally, the Company elected the practical expedient of not separating lease components from non-lease components for all asset classes. The Company also made an accounting policy election to not record ROU assets or lease liabilities for leases with an initial term of 12 months or less and will recognize payments for such leases in our Consolidated statement of comprehensive income (loss) on a straight-line basis over the lease term. The Company recorded lease liabilities and corresponding ROU assets of approximately $14 million upon adoption of this standard. 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 No. 2020-06, Debt- Debt with Conversion Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40) (ASU No. 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 470-20 and 815-40. ASU No. 2020-06 will be effective for annual reporting periods beginning after December 15, 2021. The Company does not anticipate an impact to the consolidated financial statements as a result of the adoption. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of the effect of corrections | A summary of the effect of the corrections on the consolidated balance sheet as of January 31, 2021 is as follows (in thousands): January 31, 2021 As reported Corrections As Adjusted Assets Prepaid expenses and other current assets $ 95,819 $ 5,277 $ 101,096 Total current assets 492,786 5,277 498,063 Other non-current assets 36,669 5,843 42,512 Total assets $ 585,893 $ 11,120 $ 597,013 Stockholders' deficit Accumulated deficit (341,280) 11,120 (330,160) Total stockholders' deficit 182,733 11,120 193,853 Total liabilities and stockholders' deficit $ 585,893 $ 11,120 $ 597,013 A summary of the effect of the corrections on the consolidated statements of operations for the years ended January 31, 2021 and 2020 were as follows (in thousands, except per share data): Year Ended January 31, 2021 2020 As reported Corrections As Adjusted As reported Corrections As Adjusted Operating expenses: Sales and marketing $ 189,011 $ (3,214) $ 185,797 $ 163,360 $ 634 $ 163,994 Total operating expenses 293,639 (3,214) 290,425 236,012 634 236,646 Operating loss (28,791) 3,214 (25,577) (34,895) (634) (35,529) Loss before provision for income taxes (37,407) 3,214 (34,193) (35,822) (634) (36,456) Net loss (41,184) 3,214 (37,970) (39,147) (634) (39,781) Net loss attributable to Sprinklr (41,184) 3,214 (37,970) (39,120) (634) (39,754) Net loss attributable to Sprinklr common stockholders $ (41,784) $ 3,214 $ (38,570) $ (39,120) $ (634) $ (39,754) Net loss per share attributable to Class A and Class B stockholders, basic and diluted $ (0.46) $ 0.04 $ (0.42) $ (0.46) $ (0.01) $ (0.47) A summary of the effect of the corrections on the consolidated statements of cash flows for the years ended January 31, 2021 and 2020 were as follows (in thousands): Year Ended January 31, 2021 2020 As reported Corrections As Adjusted As reported Corrections As Adjusted Net loss attributable to Sprinklr $ (41,184) $ 3,214 $ (37,970) $ (39,120) $ (634) $ (39,754) Net loss (41,184) 3,214 (37,970) (39,147) (634) (39,781) Changes in operating assets and liabilities Prepaid expenses and other current assets (27,863) (846) (28,709) (22,564) 217 (22,347) Other non-current assets (4,714) (2,368) (7,082) (10,298) 417 (9,881) For all periods in which the Company corrected net loss, the Company made corresponding corrections to net loss and comprehensive loss in the consolidated statements of comprehensive loss and to net loss, accumulated deficit and total stockholders’ (deficit) equity in the consolidated statements of stockholders’ (deficit) equity. In addition, a summary of the effect of the correction to the cumulative effect of adoption of ASC 606 presented within the consolidated statements of stockholders’ (deficit) equity is as follows (in thousands): Year Ended January 31, 2020 As reported Correction As Adjusted Cumulative effect of adoption of ASC 606 $ 23,340 $ 8,540 $ 31,880 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
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 consolidated balance sheets (in thousands): January 31, 2022 Amortized Cost Unrealized Gain Unrealized Losses Fair value Corporate bonds $ 124,639 $ 1 $ (163) $ 124,477 U.S. government and agency securities 37,725 — (35) 37,690 Commercial paper 48,818 — (2) 48,816 Marketable securities $ 211,182 $ 1 $ (200) $ 210,983 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) | 12 Months Ended |
Jan. 31, 2022 | |
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 that have been measured at fair value on a recurring basis as of January 31, 2022 and 2021, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): January 31, 2022 January 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial Assets: Cash Equivalents: Money market funds $ 281,091 $ — $ — $ 281,091 $ 37,451 $ — $ — $ 37,451 Marketable Securities: Corporate bonds — 124,477 — 124,477 — 26,892 — 26,892 U.S. government and agency securities — 37,690 — 37,690 — 125,824 — 125,824 Commercial paper — 48,816 — 48,816 — 59,936 — 59,936 Total financial assets $ 281,091 $ 210,983 $ — $ 492,074 $ 37,451 $ 212,652 $ — $ 250,103 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
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): January 31, January 31, Prepaid hosting and data costs $ 46,513 $ 58,386 Prepaid software costs 5,765 3,771 Capitalized commissions costs, current portion (1) 40,695 29,571 Prepaid insurance 2,118 289 Contract assets 3,161 824 Other 10,915 8,255 Prepaid expenses and other current assets $ 109,167 $ 101,096 (1) The prior period amount reflects an immaterial correction related to capitalized costs to obtain customer contracts. Refer to Note 2, Basis of Presentation and Summary of Significant Accounting Policies for more information regarding immaterial corrections to prior periods. |
Schedule of Property, Plant and Equipment, Net | Property and equipment, net consisted of the following (in thousands): January 31, January 31, Computer equipment 13,544 7,921 Office furniture and other 1,256 1,193 Leasehold improvements 3,930 3,500 Less accumulated depreciation and amortization (12,433) (8,598) Total fixed assets, net 6,297 4,016 Capitalized internal-use software 23,065 16,224 Less accumulated amortization (14,657) (11,229) Total capitalized internal-use software $ 8,408 $ 4,995 Property and equipment, net $ 14,705 $ 9,011 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): January 31, January 31, Bonuses $ 22,622 $ 17,783 Employee liabilities (1) 21,668 15,040 Commissions 16,496 13,346 Accrued litigation settlement (2) 12,000 — Accrued sales and use tax liability 6,935 5,667 Accrued income taxes 2,559 677 Purchased media costs (3) 3,227 2,695 Professional services 1,062 1,603 Other 13,651 6,359 $ 100,220 $ 63,170 (1) Includes $2.3 million of accrued ESPP employee contributions at January 31, 2022. Refer to Note 10, Stock-Based Compensation, for further discussion of the Company's ESPP. (2) On February 25, 2022, the Company and Opal Labs Inc. (“Opal”) agreed to settle all outstanding claims with respect to Opal's complaints alleging breach of contract and violation of Oregon’s Uniform Trade Secrets Act, among other claims. Refer to Note 9, Commitments and Contingencies. (3) 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) | 12 Months Ended |
Jan. 31, 2022 | |
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): January 31, January 31, Balance at beginning of period $ 46,823 $ 47,100 Business combination 3,023 — Effect of exchange rates 65 (277) Balance at end of period $ 49,911 $ 46,823 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
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 years ended January 31, 2022, 2021 and 2020 (in thousands): Year Ended January 31, 2022 2021 2020 Interest expense at coupon rate $ 3,182 $ 5,390 $ — Amortization of debt discounts and issuance costs 84 133 — Total interest expense $ 3,266 $ 5,523 $ — |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | At January 31, 2022, the Company had no capital leases. Future minimum lease payments under non-cancelable operating leases were as follows (in thousands): Fiscal year ended January 31, 2023 $ 9,676 2024 8,036 2025 3,165 2026 2,034 2027 and thereafter 1,726 Total $ 24,637 |
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, 2022 as follows (in thousands): Fiscal year ended January 31, 2023 $ 22,137 2024 71,314 2025 58,859 2026 4,000 2027 and thereafter — Total $ 156,310 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Equity [Abstract] | |
Schedule of Stock by Class | The following table summarizes convertible preferred stock authorized, issued and outstanding, aggregate liquidation preference and the aggregate maximum participation amount as of January 31, 2021: Series Shares authorized Shares issued and outstanding Net proceeds Aggregate liquidation preference Aggregate maximum participation amount (in thousands) (in thousands) (in thousands) A 26,000,001 26,000,001 $ 5,170 $ 5,200 $ — B 28,928,898 28,928,898 14,888 15,000 15,000 C 11,441,559 11,441,559 17,468 17,500 17,500 D 13,465,443 13,465,443 39,943 40,000 40,000 D-2 5,557,644 5,557,644 30,000 30,000 39,000 E-1 4,347,942 4,276,602 22,303 25,817 25,817 E-2 975,114 947,341 3,659 7,768 7,768 F 11,690,933 10,383,066 105,074 105,250 105,250 G-1 10,810,810 10,810,810 95,876 100,000 100,000 G-2 9,090,909 9,090,909 95,876 100,000 100,000 122,309,253 120,902,273 $ 430,257 $ 446,535 $ 450,335 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | A summary of the Company’s stock option activity for the Plan for year ended January 31, 2022 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 (9,421) 2.14 Cancelled/forfeited (3,317) 8.44 Expired (3) 4.93 Balance as of January 31, 2022 44,355 $ 6.23 7.8 $ 226,504 Exercisable as of January 31, 2022 21,037 $ 4.52 7.1 $ 141,591 Vested and expected to vest as of January 31, 2022 37,772 $ 5.81 7.6 $ 207,795 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: Year Ended January 31, 2022 2021 2020 Weighted average grant date fair value of options granted $ 5.58 $ 2.96 $ 2.09 Total intrinsic value of options exercised (in thousands) $ 83,387 $ 51,952 $ 3,660 |
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: Year Ended January 31, 2022 2021 2020 Expected term (in years) 6.0 6.1 6.0 Risk-free interest rate 0.9% - 1.4% 0.3% - 0.8% 1.3% - 2.5% Expected volatility 50.9% - 52.1% 42.3% - 45.5% 41.9% - 42.8% Expected dividend rate 0% 0% 0% Fair value of common stock $10.96 - $14.02 $4.93 - $9.07 $4.25 - $4.45 The fair value of the share purchase rights granted under the ESPP during the year ended January 31, 2022 was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: Year Ended January 31, 2022 Expected term (in years) 0.5 - 1.0 Risk-free interest rate 0.1% - 0.3% Expected volatility 49.3% - 57.0% Expected dividend rate 0% Fair value of common stock $14.27 - $22.37 |
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 1,443 15.86 Released (150) 3.64 Cancelled/forfeited (13) 17.28 Balance as of January 31, 2022 1,730 $ 14.67 |
Summary of Stock-based Compensation Expense | Stock-based compensation expense included in operating results was allocated as follows (in thousands): Year Ended January 31, 2022 2021 2020 Cost of subscription $ 1,794 $ 2,012 $ 156 Cost of professional 2,448 1,658 357 Research and development 6,417 4,804 1,430 Sales and marketing 19,929 14,976 4,173 General and administrative 19,543 21,619 4,050 Stock-based compensation, net of amounts capitalized 50,131 45,069 10,166 Capitalized stock-based compensation 696 — — Total stock-based compensation $ 50,827 $ 45,069 $ 10,166 Year Ended January 31, 2022 2021 2020 Equity classified awards (1) $ 49,827 $ 44,159 $ 10,166 Other awards (2) 1,000 910 — Total stock-based compensation $ 50,827 $ 45,069 $ 10,166 (1) Expense associated with equity-classified awards includes $6.1 million of ESPP expense recognized during the year ended January 31, 2022. For the year ended January 31, 2021, it includes $16.3 million recognized in connection with the secondary stock sale and $5.2 million recognized in connection with the tender offer transaction. (2) Non-employee 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 January 31, 2022, total unrecognized compensation cost related to unvested awards not yet recognized under all equity compensation plans, adjusted for estimated forfeitures, was as follows: January 31, 2022 Unrecognized expense Weighted average expense recognition period (in thousands) (in years) Stock options $ 44,126 2.8 Performance share units 2,736 3.1 Restricted stock units 12,303 3.5 ESPP 9,235 0.9 |
Net (Loss) Income Per Share (Ta
Net (Loss) Income Per Share (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
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): Year Ended January 31, 2022 2021 2020 Numerator: Net loss $ (111,470) $ (37,970) $ (39,781) Net loss attributable to redeemable noncontrolling interests — — 27 Net loss attributable to Sprinklr (111,470) (37,970) (39,754) Deemed dividend in relation to tender offer — (600) — Net loss attributable to Sprinklr common stockholders (111,470) (38,570) (39,754) Denominator: Weighted-average shares outstanding used in computing net loss per share attributable to Sprinklr common stockholders - basic and diluted 195,020 90,378 84,343 Net income loss per Sprinklr common stockholders - basic and diluted $ (0.57) $ (0.42) $ (0.47) Because the Company was in a loss position for the periods presented, basic net loss per share is the same as diluted net loss per share as the inclusion of all potential common shares outstanding would have been anti-dilutive. Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows (in thousands): Year Ended January 31, 2022 2021 2020 Convertible Preferred Stock — 120,902 102,408 Options to purchase common stock 44,355 46,455 43,752 Convertible note — 8,653 — Performance share units 3,175 3,100 — Restricted stock units 1,730 450 300 ESPP 205 — — Deferred stock compensation plan — 1,217 — Warrants to purchase common stock 2,500 2,731 231 Total shares excluded from net loss per share 51,965 183,508 146,691 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Domestic and Foreign Component of Loss Before Provision for Income Taxes | The domestic and foreign component of the loss before provision for income taxes was as follows (in thousands): Year Ended January 31, 2022 2021 2020 Domestic $ (123,956) $ (39,957) $ (43,461) Foreign 19,402 5,764 7,005 Total $ (104,554) $ (34,193) $ (36,456) |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes consisted of the following (in thousands): Year Ended January 31, 2022 2021 2020 Current tax provision Federal $ — $ — $ (11) State 67 102 38 Foreign 6,987 3,785 3,330 7,054 3,887 3,357 Deferred tax expense (benefit) Federal $ 88 $ 85 $ 76 State 92 99 (98) Foreign (318) (294) (10) (138) (110) (32) Total provision for income taxes 6,916 3,777 3,325 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective tax rate was as follows: Year Ended January 31, 2022 2021 2020 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % Effect of: State taxes, net of U.S. federal benefit 2.8 0.2 3.1 Foreign taxes in excess of the U.S. rate differential (1.8) (1.1) (3.2) Non-deductible expenses (8.7) (23.0) (6.5) Changes in valuation allowance (23.9) (16.1) (22.3) Excess tax benefits related to shared based compensation 4.8 10.9 2.2 Other (0.8) (3.0) (3.4) (6.6) % (11.1) % (9.1) % |
Schedule of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities were as follows (in thousands): January 31, 2022 2021 Deferred tax assets: Net operating loss carryforward $ 105,753 $ 75,304 Accrued expenses 2,003 1,643 Accrued commissions 718 464 Depreciation and amortization 613 787 Allowance for doubtful accounts 656 601 Deferred revenue 4,821 7,430 Stock-based compensation 7,068 3,932 Other 686 540 Total deferred tax assets $ 122,318 $ 90,701 Less valuation allowance (98,093) (73,299) Deferred tax assets, net of valuation allowance $ 24,225 $ 17,402 Deferred tax liabilities Depreciation and amortization (3,566) (2,496) Capitalized commission costs (20,182) (14,801) Other (287) (20) Total deferred tax liabilities $ (24,035) $ (17,317) Net deferred tax assets (liabilities) $ 190 $ 85 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending balance of total gross unrecognized tax benefits for the year ended January 31, 2022 (in thousands): Year Ended January 31, 2022 Balance at beginning of period $ 568 Tax positions taken during a prior year: Gross increases 1,229 Gross decreases (605) Tax positions taken during the current year: Gross increases 347 Balance at end of period $ 1,539 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
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 our cloud based software platform: Year Ended January 31, 2022 2021 2020 Americas $ 312,927 $ 253,689 $ 216,712 EMEA 138,553 100,057 82,773 Other 40,914 33,184 24,791 $ 492,394 $ 386,930 $ 324,276 |
Summary of Long-lived Assets by Geographical Regions | The United States was the only country that represented more than 10% of the Company's revenues, comprising of $293.1 million, $240.1 million and $204.2 million in the years ended January 31, 2022, 2021 and 2020, respectively. Long-lived assets by geographical region are based on the location of the legal entity that owns the assets. As of January 31, 2022 and 2021, long lived assets by geographic region were as follows: January 31, 2022 2021 Americas (1) $ 10,472 $ 6,135 EMEA 1,551 1,474 Other 2,682 1,402 $ 14,705 $ 9,011 (1) Includes $10.2 million and $6.0 million of fixed assets held in the United States at January 31, 2022 and 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 | Jan. 31, 2022subsidiary |
Subsidiary, Sale of Stock [Line Items] | ||||
Number of subsidiaries | subsidiary | 17 | |||
Net proceeds from offering | $ | $ 276 | |||
Underwriting discounts and commissions | $ | $ 16.6 | |||
A | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Common stock, conversion ratio | 1 | |||
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 | 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 | 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 - Narrative (Details) | 12 Months Ended | |||
Jan. 31, 2022USD ($)segment | Jan. 31, 2021USD ($) | Jan. 31, 2020USD ($) | Feb. 01, 2022USD ($) | |
Accounting Policies [Abstract] | ||||
Number of operating segments | segment | 1 | |||
Foreign currency transaction losses, net | $ 1,400,000 | $ 2,200,000 | $ 1,200,000 | |
Other-than-temporary impairment charges | 0 | |||
Property, Plant and Equipment [Line Items] | ||||
Goodwill impairment | 0 | 0 | 0 | |
Advertising expense | $ 6,800,000 | $ 200,000 | $ 300,000 | |
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-02 | ||||
Property, Plant and Equipment [Line Items] | ||||
Operating Lease, Right-of-Use Asset | $ 14,000,000 | |||
Operating Lease, Liability | $ 14,000,000 | |||
Computer Software, Intangible Asset | ||||
Property, Plant and Equipment [Line Items] | ||||
Intangible asset useful life (in years) | 3 years | |||
Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life (in years) | 2 years | |||
Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life (in years) | 3 years |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Correction Effect On Balance Sheet (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Prepaid expenses and other current assets | $ 109,167 | $ 101,096 |
Total current assets | 805,257 | 498,063 |
Other non-current assets | 49,378 | 42,512 |
Total assets | 920,046 | 597,013 |
Accumulated deficit | (441,630) | (330,160) |
Total stockholders' deficit | 515,849 | 193,853 |
Total liabilities and stockholders' deficit | $ 920,046 | 597,013 |
As reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Prepaid expenses and other current assets | 95,819 | |
Total current assets | 492,786 | |
Other non-current assets | 36,669 | |
Total assets | 585,893 | |
Accumulated deficit | (341,280) | |
Total stockholders' deficit | 182,733 | |
Total liabilities and stockholders' deficit | 585,893 | |
Corrections | Accounting Standards Update 2014-09 | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Prepaid expenses and other current assets | 5,277 | |
Total current assets | 5,277 | |
Other non-current assets | 5,843 | |
Total assets | 11,120 | |
Accumulated deficit | 11,120 | |
Total stockholders' deficit | 11,120 | |
Total liabilities and stockholders' deficit | $ 11,120 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Correction Effect on Statement of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Sales and marketing | $ 286,963 | $ 185,797 | $ 163,994 | |
Total operating expenses | 444,313 | 290,425 | 236,646 | |
Operating loss | (99,470) | (25,577) | (35,529) | |
Loss before provision for income taxes | (104,554) | (34,193) | (36,456) | |
Net loss | (111,470) | (37,970) | (39,781) | |
Net loss attributable to Sprinklr | $ (111,470) | (111,470) | (37,970) | (39,754) |
Net loss attributable to Sprinklr common stockholders | $ (111,470) | $ (38,570) | $ (39,754) | |
Net loss per share attributable to Class A and Class B common stockholders, basic (in USD per share) | $ (0.57) | $ (0.42) | $ (0.47) | |
Net income loss per Sprinklr common stockholders - diluted (in USD per share) | $ (0.57) | $ (0.42) | $ (0.47) | |
As reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Sales and marketing | $ 189,011 | $ 163,360 | ||
Total operating expenses | 293,639 | 236,012 | ||
Operating loss | (28,791) | (34,895) | ||
Loss before provision for income taxes | (37,407) | (35,822) | ||
Net loss | (41,184) | (39,147) | ||
Net loss attributable to Sprinklr | (41,184) | (39,120) | ||
Net loss attributable to Sprinklr common stockholders | $ (41,784) | $ (39,120) | ||
Net loss per share attributable to Class A and Class B common stockholders, basic (in USD per share) | $ (0.46) | $ (0.46) | ||
Net income loss per Sprinklr common stockholders - diluted (in USD per share) | $ (0.46) | $ (0.46) | ||
Corrections | Accounting Standards Update 2014-09 | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Sales and marketing | $ (3,214) | $ 634 | ||
Total operating expenses | (3,214) | 634 | ||
Operating loss | 3,214 | (634) | ||
Loss before provision for income taxes | 3,214 | (634) | ||
Net loss | 3,214 | (634) | ||
Net loss attributable to Sprinklr | 3,214 | (634) | ||
Net loss attributable to Sprinklr common stockholders | $ 3,214 | $ (634) | ||
Net loss per share attributable to Class A and Class B common stockholders, basic (in USD per share) | $ 0.04 | $ (0.01) | ||
Net income loss per Sprinklr common stockholders - diluted (in USD per share) | $ 0.04 | $ (0.01) |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Corrections Effect on Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net loss attributable to Sprinklr | $ (111,470) | $ (111,470) | $ (37,970) | $ (39,754) |
Net loss | (111,470) | (37,970) | (39,781) | |
Prepaid expenses and other current assets | (8,220) | (28,709) | (22,347) | |
Other non-current assets | $ (6,764) | (7,082) | (9,881) | |
As reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net loss attributable to Sprinklr | (41,184) | (39,120) | ||
Net loss | (41,184) | (39,147) | ||
Prepaid expenses and other current assets | (27,863) | (22,564) | ||
Other non-current assets | (4,714) | (10,298) | ||
Corrections | Accounting Standards Update 2014-09 | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net loss attributable to Sprinklr | 3,214 | (634) | ||
Net loss | 3,214 | (634) | ||
Prepaid expenses and other current assets | (846) | 217 | ||
Other non-current assets | $ (2,368) | $ 417 |
Basis of Presentation and Sum_7
Basis of Presentation and Summary of Significant Accounting Policies - Correction Effect on ASC 606 (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2020 | Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2019 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cumulative effect of adoption of ASC 606 | $ (14,445) | $ 515,849 | $ 193,853 | $ (26,203) |
Accounting standards update, extensible enumeration | Accounting Standards Update 2014-09 | |||
Cumulative Effect, Period of Adoption, Adjustment | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cumulative effect of adoption of ASC 606 | $ 31,880 | $ 31,880 | ||
Cumulative Effect, Period of Adoption, Adjustment | As reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cumulative effect of adoption of ASC 606 | 23,340 | |||
Cumulative Effect, Period of Adoption, Adjustment | Corrections | Accounting Standards Update 2014-09 | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cumulative effect of adoption of ASC 606 | $ 8,540 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) $ in Millions | 12 Months Ended | ||
Jan. 31, 2022USD ($)revenueSource | Jan. 31, 2021USD ($) | Jan. 31, 2020USD ($) | |
Capitalized Contract Cost [Line Items] | |||
Number of revenue sources | revenueSource | 2 | ||
Capitalized costs to obtain customer contracts | $ 83 | $ 60.8 | |
Amortization of costs to obtain customer contracts | 35.5 | 26.6 | $ 20.7 |
Revenue recognized previously included in deferred revenue balance | 216.4 | 180 | $ 129 |
Contract assets | 3.2 | 0.8 | |
Prepaid expenses and other current assets | |||
Capitalized Contract Cost [Line Items] | |||
Capitalized costs to obtain customer contracts | 40.7 | 29.6 | |
Other noncurrent assets | |||
Capitalized Contract Cost [Line Items] | |||
Capitalized costs to obtain customer contracts | $ 42.3 | $ 31.2 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligation (Details) $ in Millions | Jan. 31, 2022USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 586.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-02-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 409.2 |
Timing of satisfaction of performance obligation | 12 months |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 211,182 | $ 212,634 |
Unrealized Gain | 1 | 20 |
Unrealized Losses | (200) | (2) |
Fair value | 210,983 | 212,652 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 124,639 | 26,894 |
Unrealized Gain | 1 | 0 |
Unrealized Losses | (163) | (2) |
Fair value | 124,477 | 26,892 |
U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 37,725 | 125,804 |
Unrealized Gain | 0 | 20 |
Unrealized Losses | (35) | 0 |
Fair value | 37,690 | 125,824 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 48,818 | 59,936 |
Unrealized Gain | 0 | 0 |
Unrealized Losses | (2) | 0 |
Fair value | $ 48,816 | $ 59,936 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 210,983 | $ 212,652 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 492,074 | 250,103 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 281,091 | 37,451 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 210,983 | 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 | 124,477 | 26,892 |
Corporate bonds | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 124,477 | 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 | 124,477 | 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 | 37,690 | 125,824 |
U.S. government and agency securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 37,690 | 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 | 37,690 | 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 | 48,816 | 59,936 |
Commercial paper | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 48,816 | 59,936 |
Commercial paper | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Commercial paper | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 48,816 | 59,936 |
Commercial paper | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Money market funds | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 281,091 | 37,451 |
Money market funds | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 281,091 | 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 | Jan. 31, 2022 | Jan. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid hosting and data costs | $ 46,513 | $ 58,386 |
Prepaid software costs | 5,765 | 3,771 |
Capitalized commissions costs, current portion | 40,695 | 29,571 |
Prepaid insurance | 2,118 | 289 |
Contract assets | 3,161 | 824 |
Other | 10,915 | 8,255 |
Prepaid expenses and other current assets | $ 109,167 | $ 101,096 |
Balance Sheet Components - Prop
Balance Sheet Components - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Less accumulated depreciation and amortization | $ (12,433) | $ (8,598) |
Total fixed assets, net | 6,297 | 4,016 |
Capitalized internal-use software | 23,065 | 16,224 |
Less accumulated amortization | (14,657) | (11,229) |
Total capitalized internal-use software | 8,408 | 4,995 |
Property and equipment, net | 14,705 | 9,011 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | 13,544 | 7,921 |
Office furniture and other | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | 1,256 | 1,193 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | $ 3,930 | $ 3,500 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Depreciation | $ 4.2 | $ 2.5 | $ 2 |
Amortization expense for capitalized internal-use software | 3.4 | 2.5 | 2.3 |
Capitalized internal-use software costs | $ 7 | $ 3.8 | $ 2.5 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Bonuses | $ 22,622 | $ 17,783 |
Employee liabilities | 21,668 | 15,040 |
Commissions | 16,496 | 13,346 |
Accrued litigation settlement | 12,000 | 0 |
Accrued sales and use tax liability | 6,935 | 5,667 |
Accrued income taxes | 2,559 | 677 |
Purchased media costs | 3,227 | 2,695 |
Professional services | 1,062 | 1,603 |
Other | 13,651 | 6,359 |
Total accrued liabilities | $ 100,220 | $ 63,170 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Goodwill [Roll Forward] | ||
Balance at beginning of period | $ 46,823 | $ 47,100 |
Business combination | 3,023 | 0 |
Effect of exchange rates | 65 | (277) |
Balance at end of period | $ 49,911 | $ 46,823 |
Debt - Summary of Long-term Deb
Debt - Summary of Long-term Debt (Details) - USD ($) | Jan. 31, 2022 | 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 | Jan. 31, 2022 | Jan. 31, 2021 | May 20, 2020 |
Debt Instrument [Line Items] | ||||
Debt outstanding | $ 0 | $ 78,848,000 | ||
Principal balance | 80,390,000 | |||
Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Unused borrowing capacity | 700,000 | |||
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% | |||
Fair value of debt | 86,400,000 | |||
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 | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Debt Disclosure [Abstract] | |||
Interest expense at coupon rate | $ 3,182 | $ 5,390 | $ 0 |
Amortization of debt discounts and issuance costs | 84 | 133 | 0 |
Total interest expense | $ 3,266 | $ 5,523 | $ 0 |
Commitment and Contingencies -
Commitment and Contingencies - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Loss Contingencies [Line Items] | |||
Deferred rent | $ 1,800,000 | $ 2,200,000 | |
Rent expense | 7,400,000 | 7,200,000 | $ 6,400,000 |
Letters of credit | 0 | ||
Aggregate availability of letters of credit | 700,000 | ||
Accrued expenses and other current liabilities | |||
Loss Contingencies [Line Items] | |||
Deferred rent | 600,000 | 1,300,000 | |
Other liabilities | |||
Loss Contingencies [Line Items] | |||
Deferred rent | $ 1,200,000 | $ 900,000 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Lease Payments Under Non-cancelable Operating Leases (Details) $ in Thousands | Jan. 31, 2022USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2023 | $ 9,676 |
2024 | 8,036 |
2025 | 3,165 |
2026 | 2,034 |
2027 and thereafter | 1,726 |
Total | $ 24,637 |
Commitments and Contingencies_2
Commitments and Contingencies - Purchase Commitments (Details) $ in Thousands | Jan. 31, 2022USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2023 | $ 22,137 |
2024 | 71,314 |
2025 | 58,859 |
2026 | 4,000 |
2027 and thereafter | 0 |
Total | $ 156,310 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) $ / shares in Units, $ in Millions | Jul. 01, 2021USD ($) | Jun. 29, 2021shares | Jan. 31, 2021USD ($)$ / sharesshares | Jan. 31, 2022$ / sharesshares | Jun. 25, 2021vote$ / sharesshares | Jan. 31, 2012$ / sharesshares |
Class of Stock [Line Items] | ||||||
Common stock, shares authorized (in shares) | 299,000,000 | 0 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00003 | $ 0.00003 | ||||
Preferred stock, shares authorized (in shares) | 0 | 20,000,000 | 20,000,000 | |||
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) | 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 | |||||
A | ||||||
Class of Stock [Line Items] | ||||||
Common stock, shares authorized (in shares) | 0 | 2,000,000,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00003 | $ 0.00003 | $ 0.00003 | |||
Preferred stock, shares authorized (in shares) | 26,000,001 | |||||
Votes per share | vote | 1 | |||||
Common stock, conversion ratio | 1 | |||||
B | ||||||
Class of Stock [Line Items] | ||||||
Common stock, shares authorized (in shares) | 0 | 310,000,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00003 | $ 0.00003 | $ 0.00003 | |||
Preferred stock, shares authorized (in shares) | 28,928,898 | |||||
Votes per share | vote | 10 | |||||
Common stock, conversion ratio | 1 | |||||
Shares issued upon conversion of convertible preferred stock (in shares) | 120,902,273 | |||||
Convertible preferred stock, conversion ratio | 1 | |||||
Shares issued upon cashless exercise of common stock warrants (in shares) | 230,259 | |||||
G-1 | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, shares authorized (in shares) | 10,810,810 | |||||
Offering price (in dollars per share) | $ / shares | $ 9.25 | |||||
Carrying value of preferred stock | $ | $ 95.9 | |||||
G-1 | Private Placement | ||||||
Class of Stock [Line Items] | ||||||
Number of shares issued and sold (in shares) | 10,800,000 | |||||
Offering price (in dollars per share) | $ / shares | $ 9.25 | |||||
G-2 | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, shares authorized (in shares) | 9,090,909 | |||||
Offering price (in dollars per share) | $ / shares | $ 11 | |||||
Carrying value of preferred stock | $ | $ 95.9 | |||||
G-2 | Private Placement | ||||||
Class of Stock [Line Items] | ||||||
Number of shares issued and sold (in shares) | 9,100,000 | |||||
Offering price (in dollars per share) | $ / shares | $ 11 | |||||
Convertible Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, shares authorized (in shares) | 122,309,253 | 0 | ||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.00003 | $ 0.00003 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Stock (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | Jun. 25, 2021 | |
Class of Stock [Line Items] | ||||
Shares authorized (in shares) | 20,000,000 | 0 | 20,000,000 | |
Shares issued (in shares) | 0 | 0 | ||
Shares outstanding (in shares) | 0 | 0 | ||
Net proceeds | $ 0 | $ 191,752 | $ 0 | |
A | ||||
Class of Stock [Line Items] | ||||
Shares authorized (in shares) | 26,000,001 | |||
Shares issued (in shares) | 26,000,001 | |||
Shares outstanding (in shares) | 26,000,001 | |||
Net proceeds | $ 5,170 | |||
Aggregate liquidation preference | 5,200 | |||
Aggregate maximum participation amount | $ 0 | |||
B | ||||
Class of Stock [Line Items] | ||||
Shares authorized (in shares) | 28,928,898 | |||
Shares issued (in shares) | 28,928,898 | |||
Shares outstanding (in shares) | 28,928,898 | |||
Net proceeds | $ 14,888 | |||
Aggregate liquidation preference | 15,000 | |||
Aggregate maximum participation amount | $ 15,000 | |||
C | ||||
Class of Stock [Line Items] | ||||
Shares authorized (in shares) | 11,441,559 | |||
Shares issued (in shares) | 11,441,559 | |||
Shares outstanding (in shares) | 11,441,559 | |||
Net proceeds | $ 17,468 | |||
Aggregate liquidation preference | 17,500 | |||
Aggregate maximum participation amount | $ 17,500 | |||
D | ||||
Class of Stock [Line Items] | ||||
Shares authorized (in shares) | 13,465,443 | |||
Shares issued (in shares) | 13,465,443 | |||
Shares outstanding (in shares) | 13,465,443 | |||
Net proceeds | $ 39,943 | |||
Aggregate liquidation preference | 40,000 | |||
Aggregate maximum participation amount | $ 40,000 | |||
D-2 | ||||
Class of Stock [Line Items] | ||||
Shares authorized (in shares) | 5,557,644 | |||
Shares issued (in shares) | 5,557,644 | |||
Shares outstanding (in shares) | 5,557,644 | |||
Net proceeds | $ 30,000 | |||
Aggregate liquidation preference | 30,000 | |||
Aggregate maximum participation amount | $ 39,000 | |||
E-1 | ||||
Class of Stock [Line Items] | ||||
Shares authorized (in shares) | 4,347,942 | |||
Shares issued (in shares) | 4,276,602 | |||
Shares outstanding (in shares) | 4,276,602 | |||
Net proceeds | $ 22,303 | |||
Aggregate liquidation preference | 25,817 | |||
Aggregate maximum participation amount | $ 25,817 | |||
E-2 | ||||
Class of Stock [Line Items] | ||||
Shares authorized (in shares) | 975,114 | |||
Shares issued (in shares) | 947,341 | |||
Shares outstanding (in shares) | 947,341 | |||
Net proceeds | $ 3,659 | |||
Aggregate liquidation preference | 7,768 | |||
Aggregate maximum participation amount | $ 7,768 | |||
F | ||||
Class of Stock [Line Items] | ||||
Shares authorized (in shares) | 11,690,933 | |||
Shares issued (in shares) | 10,383,066 | |||
Shares outstanding (in shares) | 10,383,066 | |||
Net proceeds | $ 105,074 | |||
Aggregate liquidation preference | 105,250 | |||
Aggregate maximum participation amount | $ 105,250 | |||
G-1 | ||||
Class of Stock [Line Items] | ||||
Shares authorized (in shares) | 10,810,810 | |||
Shares issued (in shares) | 10,810,810 | |||
Shares outstanding (in shares) | 10,810,810 | |||
Net proceeds | $ 95,876 | |||
Aggregate liquidation preference | 100,000 | |||
Aggregate maximum participation amount | $ 100,000 | |||
G-2 | ||||
Class of Stock [Line Items] | ||||
Shares authorized (in shares) | 9,090,909 | |||
Shares issued (in shares) | 9,090,909 | |||
Shares outstanding (in shares) | 9,090,909 | |||
Net proceeds | $ 95,876 | |||
Aggregate liquidation preference | 100,000 | |||
Aggregate maximum participation amount | $ 100,000 | |||
Convertible Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Shares authorized (in shares) | 0 | 122,309,253 | ||
Shares issued (in shares) | 0 | 120,902,273 | ||
Shares outstanding (in shares) | 0 | 120,902,273 | ||
Net proceeds | $ 430,257 | |||
Aggregate liquidation preference | 446,535 | |||
Aggregate maximum participation amount | $ 450,335 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Thousands | Jul. 01, 2021USD ($) | Jun. 25, 2021USD ($)shares | Jun. 22, 2021USD ($) | Jun. 07, 2021shares | May 20, 2021periodshares | Jan. 28, 2021USD ($)$ / sharesshares | Mar. 18, 2019USD ($)tranche$ / sharesshares | Jun. 30, 2021USD ($)$ / shares | May 31, 2021shares | Nov. 30, 2020USD ($)$ / sharesshares | Oct. 31, 2020USD ($)$ / sharesshares | Jan. 31, 2022USD ($)$ / sharesshares | Jan. 31, 2022USD ($)$ / sharesshares | Jan. 31, 2021USD ($)$ / shares | Jan. 31, 2020USD ($)$ / 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) | 38,857,443 | 38,857,443 | ||||||||||||||
Stock-based compensation, net of amounts capitalized | $ | $ 50,131 | $ 45,069 | $ 10,166 | |||||||||||||
Granted (in shares) | 10,641,000 | |||||||||||||||
Share price (in dollars per share) | $ / shares | $ 11.25 | $ 11.25 | $ 9.07 | |||||||||||||
Grant date fair value of options vested | $ | $ 29,300 | $ 14,900 | 7,900 | |||||||||||||
Accrued ESPP employee contributions | $ | $ 2,300 | 2,300 | ||||||||||||||
Net proceeds from offering | $ | $ 276,000 | |||||||||||||||
Stock-based compensation, net of amounts capitalized | $ | 50,827 | 45,069 | 10,166 | |||||||||||||
Secondary Sale Of Stock | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Number of shares issued and sold (in shares) | 9,707,427 | |||||||||||||||
Offering price (in dollars per share) | $ / shares | $ 9.25 | |||||||||||||||
Net proceeds from offering | $ | $ 89,800 | |||||||||||||||
Tender Offer Transaction | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Offering price (in dollars per share) | $ / shares | $ 9.25 | |||||||||||||||
Tender Offer Transaction | Convertible Preferred Stock | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Shares issued | 5,974,776 | |||||||||||||||
Preferred stock dividends | $ | $ 600 | |||||||||||||||
Tender Offer Transaction | Common Stock | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Shares issued | 3,303,891 | |||||||||||||||
Equity classified awards | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Stock-based compensation, net of amounts capitalized | $ | $ 49,827 | 44,159 | $ 10,166 | |||||||||||||
Equity classified awards | Secondary Sale Of Stock | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Stock-based compensation, net of amounts capitalized | $ | $ 16,300 | 16,300 | ||||||||||||||
Equity classified awards | Tender Offer Transaction | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Stock-based compensation, net of amounts capitalized | $ | $ 5,200 | $ 5,200 | ||||||||||||||
Chief Executive Officer | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Granted (in shares) | 9,274,528 | |||||||||||||||
Chief Executive Officer | Tranche One | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Granted (in shares) | 2,318,632 | |||||||||||||||
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, minimum (in dollars per share) | $ / shares | $ 9.07 | |||||||||||||||
Expected term (in years) | 5 years | |||||||||||||||
Grant date fair value | $ | $ 3,500 | |||||||||||||||
Stock-based compensation, net of amounts capitalized | $ | $ 400 | |||||||||||||||
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 | |||||||||||||||
Options to purchase common stock | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Fair value of common stock, minimum (in dollars per share) | $ / shares | $ 10.96 | $ 4.93 | $ 4.25 | |||||||||||||
Expected term (in years) | 6 years | 6 years 1 month 6 days | 6 years | |||||||||||||
Unrecognized expense | $ | 44,126 | $ 44,126 | ||||||||||||||
Options to purchase common stock | 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, minimum (in dollars per share) | $ / shares | $ 4.25 | |||||||||||||||
Expected term (in years) | 10 years | |||||||||||||||
Grant date fair value | $ | $ 1,700 | |||||||||||||||
Number of tranches | tranche | 4 | |||||||||||||||
Options to purchase common stock | Chief Executive Officer | Tranche One | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Award vesting period | 3 years | |||||||||||||||
Options to purchase common stock | Chief Executive Officer | Tranche Two | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Stock-based compensation, net of amounts capitalized | $ | $ 5,800 | |||||||||||||||
Restricted stock units | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Granted (in shares) | 300,000 | 1,443,000 | ||||||||||||||
Award requisite service period | 5 years | |||||||||||||||
Stock-based compensation, net of amounts capitalized | $ | $ 600 | |||||||||||||||
Unrecognized expense | $ | $ 12,303 | $ 12,303 | ||||||||||||||
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 14.67 | $ 14.67 | $ 7.26 | |||||||||||||
Restricted stock units | Tranche One | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Award requisite service period | 1 year | |||||||||||||||
Award vesting percentage | 20.00% | |||||||||||||||
Restricted stock units | Tranche Two | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Award requisite service period | 4 years | |||||||||||||||
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, minimum (in dollars per share) | $ / shares | $ 14.27 | |||||||||||||||
Stock-based compensation, net of amounts capitalized | $ | $ 6,100 | |||||||||||||||
Unrecognized expense | $ | $ 9,235 | $ 9,235 | ||||||||||||||
Shares authorized for issuance (in shares) | 5,100,000 | |||||||||||||||
Shares available for issuance (in shares) | 2,562,692 | |||||||||||||||
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 | 12 months | ||||||||||||||
Number of purchase periods | period | 2 | |||||||||||||||
Incremental charges due to modification | $ | $ 3,400 | |||||||||||||||
ESPP | Minimum | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Expected term (in years) | 6 months | |||||||||||||||
ESPP | Maximum | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Expected term (in years) | 1 year | |||||||||||||||
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, minimum (in dollars per share) | $ / shares | $ 4.93 | |||||||||||||||
Expected term (in years) | 1 year | |||||||||||||||
Stock-based compensation, 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 | |||||||||||||||
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, $ in Thousands | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2020 | |
Number of stock options outstanding | ||
Granted (in shares) | 10,641,000 | |
Exercised (in shares) | (9,421,000) | |
Cancelled/forfeited (in shares) | (3,317,000) | |
Expired (in shares) | (3,000) | |
Ending balance (in shares) | 46,455,000 | 44,355,000 |
Exercisable (in shares) | 21,037,000 | |
Vested and expected to vest (in shares) | 37,772,000 | |
Weighted average exercise price | ||
Granted (in dollars per share) | $ 11.43 | |
Exercised (in dollars per share) | 2.14 | |
Cancelled/forfeited (in dollars per share) | 8.44 | |
Expired (in dollars per share) | 4.93 | |
Ending balance (in dollars per share) | 4.37 | $ 6.23 |
Exercisable (in dollars per share) | 4.52 | |
Vested and expected to vest (in dollars per share) | $ 5.81 | |
Weighted average remaining contractual life | ||
Balance | 7 years 8 months 12 days | 7 years 9 months 18 days |
Exercisable | 7 years 1 month 6 days | |
Vested and expected to vest | 7 years 7 months 6 days | |
Aggregate intrinsic value | ||
Balance | $ 218,450 | $ 226,504 |
Exercisable | 141,591 | |
Vested and expected to vest | $ 207,795 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |||
Weighted average grant date fair value of options granted (in dollars per share) | $ 5.58 | $ 2.96 | $ 2.09 |
Total intrinsic value of options exercised (in thousands) | $ 83,387 | $ 51,952 | $ 3,660 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value Assumptions (Details) - $ / shares | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Options to purchase common stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 years | 6 years 1 month 6 days | 6 years |
Risk-free interest rate, minimum | 0.90% | 0.30% | 1.30% |
Risk-free interest rate, maximum | 1.40% | 0.80% | 2.50% |
Expected volatility, minimum | 50.90% | 42.30% | 41.90% |
Expected volatility, maximum | 52.10% | 45.50% | 42.80% |
Expected dividend rate | 0.00% | 0.00% | 0.00% |
Fair value of common stock, minimum (in dollars per share) | $ 10.96 | $ 4.93 | $ 4.25 |
Fair value of common stock, maximum (in dollars per share) | $ 14.02 | $ 9.07 | $ 4.45 |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, minimum | 0.10% | ||
Risk-free interest rate, maximum | 0.30% | ||
Expected volatility, minimum | 49.30% | ||
Expected volatility, maximum | 57.00% | ||
Expected dividend rate | 0.00% | ||
Fair value of common stock, minimum (in dollars per share) | $ 14.27 | ||
Fair value of common stock, maximum (in dollars per share) | $ 22.37 | ||
ESPP | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 months | ||
ESPP | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 1 year |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Details) - $ / shares | Jan. 28, 2021 | Jan. 31, 2022 |
Number of restricted shares outstanding | ||
Cancelled/forfeited (in shares) | (3,317,000) | |
Restricted stock units | ||
Number of restricted shares outstanding | ||
Balance as of January 31, 2021 (in shares) | 450,000 | |
Granted (in shares) | 300,000 | 1,443,000 |
Release (in shares) | (150,000) | |
Cancelled/forfeited (in shares) | (13,000) | |
Balance as of July 31, 2021 (in shares) | 1,730,000 | |
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) | 15.86 | |
Released, weighted average grant date fair value (in dollars per share) | 3.64 | |
Cancelled/forfeited, weighted average grant date fair value (in dollars per share) | 17.28 | |
Balance as of July 31, 2021, weighted average grant date fair value (in dollars per share) | $ 14.67 |
Stock-Based Compensation - St_3
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2020 | Oct. 31, 2020 | Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation, net of amounts capitalized | $ 50,131 | $ 45,069 | $ 10,166 | ||
Capitalized stock-based compensation | 696 | 0 | 0 | ||
Stock-based compensation, net of amounts capitalized | 50,827 | 45,069 | 10,166 | ||
Equity classified awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation, net of amounts capitalized | 49,827 | 44,159 | 10,166 | ||
Equity classified awards | Secondary Sale Of Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation, net of amounts capitalized | $ 16,300 | 16,300 | |||
Equity classified awards | Tender Offer Transaction | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation, net of amounts capitalized | $ 5,200 | 5,200 | |||
Other awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation, net of amounts capitalized | $ 1,000 | 910 | 0 | ||
Award vesting period | 5 years | ||||
Research and development | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation, net of amounts capitalized | $ 6,417 | 4,804 | 1,430 | ||
Sales and marketing | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation, net of amounts capitalized | 19,929 | 14,976 | 4,173 | ||
General and administrative | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation, net of amounts capitalized | 19,543 | 21,619 | 4,050 | ||
Cost of Sales | Cost of subscription | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation, net of amounts capitalized | 1,794 | 2,012 | 156 | ||
Cost of Sales | Cost of professional | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation, net of amounts capitalized | $ 2,448 | $ 1,658 | $ 357 |
Stock-Based Compensation - Cost
Stock-Based Compensation - Costs Not Yet Recognized (Details) $ in Thousands | 12 Months Ended |
Jan. 31, 2022USD ($) | |
Options to purchase common stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized expense | $ 44,126 |
Weighted average expense recognition period | 2 years 9 months 18 days |
Performance share units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized expense | $ 2,736 |
Weighted average expense recognition period | 3 years 1 month 6 days |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized expense | $ 12,303 |
Weighted average expense recognition period | 3 years 6 months |
ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized expense | $ 9,235 |
Weighted average expense recognition period | 10 months 24 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 | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (111,470) | $ (37,970) | $ (39,781) | |
Net loss attributable to redeemable noncontrolling interests | $ 0 | 0 | 0 | 27 |
Net loss attributable to Sprinklr | $ (111,470) | (111,470) | (37,970) | (39,754) |
Deemed dividend in relation to tender offer | 0 | (600) | 0 | |
Net loss attributable to Sprinklr common stockholders, Diluted | (111,470) | (38,570) | (39,754) | |
Net loss attributable to Sprinklr common stockholders | $ (111,470) | $ (38,570) | $ (39,754) | |
Weighted average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic (in shares) | 195,020,000 | 90,378,000 | 84,343,000 | |
Weighted average shares used in computing net loss per share attributable to Class A and Class B common stockholders, diluted (in shares) | 195,020,000 | 90,378,000 | 84,343,000 | |
Net income loss per Sprinklr common stockholders - basic (in USD per share) | $ (0.57) | $ (0.42) | $ (0.47) | |
Net income loss per Sprinklr common stockholders - diluted (in USD per share) | $ (0.57) | $ (0.42) | $ (0.47) |
Net (Loss) Income Per Share - P
Net (Loss) Income Per Share - Potentially Dilutive Securities Excluded from Diluted Per Share Calculations (Details) - shares shares in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares excluded from net loss per share (in shares) | 51,965 | 183,508 | 146,691 |
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 | 120,902 | 102,408 |
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) | 44,355 | 46,455 | 43,752 |
Convertible note | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares excluded from net loss per share (in shares) | 0 | 8,653 | 0 |
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 | 3,100 | 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) | 1,730 | 450 | 300 |
ESPP | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares excluded from net loss per share (in shares) | 205 | 0 | 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 | 1,217 | 0 |
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 | 2,731 | 231 |
Income Taxes - Schedule of Loss
Income Taxes - Schedule of Loss before Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (123,956) | $ (39,957) | $ (43,461) |
Foreign | 19,402 | 5,764 | 7,005 |
Loss before provision for income taxes | $ (104,554) | $ (34,193) | $ (36,456) |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Current tax provision | |||
Federal | $ 0 | $ 0 | $ (11) |
State | 67 | 102 | 38 |
Foreign | 6,987 | 3,785 | 3,330 |
Total current tax provision | 7,054 | 3,887 | 3,357 |
Deferred tax expense (benefit) | |||
Federal | 88 | 85 | 76 |
State | 92 | 99 | (98) |
Foreign | (318) | (294) | (10) |
Deferred income taxes | (138) | (110) | (32) |
Total provision for income taxes | $ 6,916 | $ 3,777 | $ 3,325 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Income Tax Rate (Details) | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate | 21.00% | 21.00% | 21.00% |
Effect of: | |||
State taxes, net of U.S. federal benefit | 2.80% | 0.20% | 3.10% |
Foreign taxes in excess of the U.S. rate differential | (1.80%) | (1.10%) | (3.20%) |
Non-deductible expenses | (8.70%) | (23.00%) | (6.50%) |
Changes in valuation allowance | (23.90%) | (16.10%) | (22.30%) |
Excess tax benefits related to shared based compensation | 4.80% | 10.90% | 2.20% |
Other | (0.80%) | (3.00%) | (3.40%) |
Effective income tax rate | (6.60%) | (11.10%) | (9.10%) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Deferred tax assets: | ||
Net operating loss carryforward | $ 105,753 | $ 75,304 |
Accrued expenses | 2,003 | 1,643 |
Accrued commissions | 718 | 464 |
Depreciation and amortization | 613 | 787 |
Allowance for doubtful accounts | 656 | 601 |
Deferred revenue | 4,821 | 7,430 |
Stock-based compensation | 7,068 | 3,932 |
Other | 686 | 540 |
Total deferred tax assets | 122,318 | 90,701 |
Less valuation allowance | (98,093) | (73,299) |
Deferred tax assets, net of valuation allowance | 24,225 | 17,402 |
Deferred tax liabilities | ||
Depreciation and amortization | (3,566) | (2,496) |
Capitalized commission costs | (20,182) | (14,801) |
Other | (287) | (20) |
Total deferred tax liabilities | (24,035) | (17,317) |
Net deferred tax assets (liabilities) | $ 190 | $ 85 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | $ 98,093 | $ 73,299 |
Foreign earnings | 48,900 | |
Domestic Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 395,400 | |
State and Local Jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 287,100 | |
Foreign Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 14,700 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) $ in Thousands | 12 Months Ended |
Jan. 31, 2022USD ($) | |
Schedule of Unrecognized Tax Benefits Roll Forward | |
Beginning balance | $ 568 |
Tax positions taken during a prior year: | |
Gross increases | 1,229 |
Gross decreases | (605) |
Tax positions taken during the current year: | |
Gross increases | 347 |
Ending balance | $ 1,539 |
Geographic Information (Details
Geographic Information (Details) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022USD ($)segment | Jan. 31, 2021USD ($) | Jan. 31, 2020USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of operating segments | segment | 1 | ||
Revenue | $ 492,394 | $ 386,930 | $ 324,276 |
Long-lived assets | 14,705 | 9,011 | |
Americas | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 312,927 | 253,689 | 216,712 |
Long-lived assets | 10,472 | 6,135 | |
EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 138,553 | 100,057 | 82,773 |
Long-lived assets | 1,551 | 1,474 | |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 40,914 | 33,184 | 24,791 |
Long-lived assets | 2,682 | 1,402 | |
US | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 293,100 | 240,100 | $ 204,200 |
Long-lived assets | $ 10,200 | $ 6,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) | 12 Months Ended |
Jan. 31, 2022USD ($) | |
Retirement Benefits [Abstract] | |
Maximum employee contribution (as a percent) | 90.00% |
Maximum employer matching contribution | $ 1,000 |