Cover
Cover - shares | 9 Months Ended | |
Oct. 31, 2022 | Nov. 30, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-40528 | |
Entity Registrant Name | Sprinklr, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-4771485 | |
Entity Address, Address Line One | 29 West 35th Street | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10001 | |
City Area Code | 917 | |
Local Phone Number | 933-7800 | |
Title of 12(b) Security | Class A common stock, par value$0.00003 per share | |
Trading Symbol | CXM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001569345 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --01-31 | |
Common Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 116,694,347 | |
Common Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 144,338,771 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 31, 2022 | Jan. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 156,025 | $ 321,426 |
Marketable securities | 388,089 | 210,983 |
Accounts receivable, net of allowance for doubtful accounts of $3.9 million and $2.7 million, respectively | 132,932 | 163,681 |
Prepaid expenses and other current assets | 80,557 | 109,167 |
Total current assets | 757,603 | 805,257 |
Property and equipment, net | 20,679 | 14,705 |
Goodwill and other intangible assets | 50,489 | 50,706 |
Operating lease right-of-use assets | 13,506 | |
Other non-current assets | 54,718 | 49,378 |
Total assets | 896,995 | 920,046 |
Current liabilities: | ||
Accounts payable | 15,776 | 15,802 |
Accrued expenses and other current liabilities | 88,369 | 100,220 |
Operating lease liabilities, current | 6,693 | |
Deferred revenue | 257,659 | 279,028 |
Total current liabilities | 368,497 | 395,050 |
Deferred revenue less current portion | 1,015 | 5,325 |
Deferred tax liability, long-term | 1,089 | 1,101 |
Operating lease liabilities, long-term | 7,601 | |
Other liabilities, long-term | 1,365 | 2,721 |
Total liabilities | 379,567 | 404,197 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity: | ||
Treasury stock, at cost, 14,130,784 and 14,130,784 shares | (23,831) | (23,831) |
Additional paid-in capital | 1,045,399 | 982,122 |
Accumulated other comprehensive loss | (7,444) | (820) |
Accumulated deficit | (496,705) | (441,630) |
Total stockholders’ equity | 517,428 | 515,849 |
Total liabilities and stockholders’ equity | 896,995 | 920,046 |
Class A | ||
Stockholders’ equity: | ||
Common stock | 3 | 3 |
Class B | ||
Stockholders’ equity: | ||
Common stock | $ 6 | $ 5 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Oct. 31, 2022 | Jan. 31, 2022 |
Allowance for doubtful accounts | $ 3.9 | $ 2.7 |
Treasury stock (in shares) | 14,130,784 | 14,130,784 |
Class A | ||
Common stock, par value (in dollars per share) | $ 0.00003 | $ 0.00003 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 114,302,956 | 105,929,885 |
Common stock, shares outstanding (in shares) | 114,302,956 | 105,929,885 |
Class B | ||
Common stock, par value (in dollars per share) | $ 0.00003 | $ 0.00003 |
Common stock, shares authorized (in shares) | 310,000,000 | 310,000,000 |
Common stock, shares issued (in shares) | 146,607,531 | 150,551,314 |
Common stock, shares outstanding (in shares) | 146,607,531 | 150,551,314 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Revenue: | ||||
Total revenue: | $ 157,251 | $ 127,056 | $ 452,859 | $ 356,728 |
Costs of revenue: | ||||
Total costs of revenue | 40,520 | 38,700 | 124,400 | 107,748 |
Gross profit | 116,731 | 88,356 | 328,459 | 248,980 |
Operating expenses: | ||||
Research and development | 19,208 | 16,591 | 56,531 | 44,717 |
Sales and marketing | 79,538 | 74,698 | 253,418 | 204,573 |
General and administrative | 22,588 | 21,833 | 67,916 | 63,364 |
Total operating expenses | 121,334 | 113,122 | 377,865 | 312,654 |
Operating loss | (4,603) | (24,766) | (49,406) | (63,674) |
Other income (expense), net | 1,093 | (1,119) | 1,304 | (4,744) |
Loss before provision for income taxes | (3,510) | (25,885) | (48,102) | (68,418) |
Provision for income taxes | 2,350 | 1,823 | 6,973 | 6,132 |
Net loss | $ (5,860) | $ (27,708) | $ (55,075) | $ (74,550) |
Net loss per share attributable to Class A and Class B common stockholders, basic (in dollars per share) | $ (0.02) | $ (0.11) | $ (0.21) | $ (0.43) |
Net loss per share attributable to Class A and Class B common stockholders, diluted (in dollars per share) | $ (0.02) | $ (0.11) | $ (0.21) | $ (0.43) |
Weighted average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic (in shares) | 260,285 | 255,195 | 258,677 | 174,497 |
Weighted average shares used in computing net loss per share attributable to Class A and Class B common stockholders, diluted (in shares) | 260,285 | 255,195 | 258,677 | 174,497 |
Subscription | ||||
Revenue: | ||||
Total revenue: | $ 139,906 | $ 109,941 | $ 400,301 | $ 310,020 |
Costs of revenue: | ||||
Total costs of revenue | 26,249 | 22,835 | 76,759 | 66,228 |
Professional services | ||||
Revenue: | ||||
Total revenue: | 17,345 | 17,115 | 52,558 | 46,708 |
Costs of revenue: | ||||
Total costs of revenue | $ 14,271 | $ 15,865 | $ 47,641 | $ 41,520 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (5,860) | $ (27,708) | $ (55,075) | $ (74,550) |
Foreign currency translation adjustments | (1,831) | 13 | (4,873) | (770) |
Unrealized losses on investments | (446) | (8) | (1,751) | (22) |
Total comprehensive loss | $ (8,137) | $ (27,703) | $ (61,699) | $ (75,342) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Senior Subordinated Secured Convertible Notes | Common Stock | Common Stock Class A and Class B Common Stock | Common Stock Class A and Class B Common Stock Senior Subordinated Secured Convertible Notes | Additional Paid-in Amount | Additional Paid-in Amount Senior Subordinated Secured Convertible Notes | Treasury Stock | Accumulated Other Comprehensive (Loss) Income | Accumulated Deficit |
Beginning balance (in shares) at Jan. 31, 2021 | 120,903,000 | |||||||||
Beginning balance at Jan. 31, 2021 | $ 424,992 | |||||||||
Convertible Preferred Stock | ||||||||||
Conversion of convertible preferred stock to common stock upon initial public offering (in shares) | (120,903,000) | |||||||||
Conversion of convertible preferred stock to common stock upon initial public offering | $ (424,992) | |||||||||
Ending balance (in shares) at Oct. 31, 2021 | 0 | |||||||||
Ending balance at Oct. 31, 2021 | $ 0 | |||||||||
Beginning balance (in shares) at Jan. 31, 2021 | 109,587,000 | 0 | ||||||||
Beginning balance (in shares) at Jan. 31, 2021 | (14,131,000) | |||||||||
Beginning balance at Jan. 31, 2021 | 193,853 | $ 4 | $ 0 | $ 122,061 | $ (23,831) | $ 787 | $ (330,160) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of common stock upon initial public offering, net of underwriting discounts and issuance costs (in shares) | 18,288,000 | |||||||||
Issuance of common stock upon initial public offering, net of underwriting discounts and issuance costs | 275,973 | 275,973 | ||||||||
Conversion of convertible preferred stock and senior subordinated secured convertible notes (in shares) | 120,903,000 | 9,694,000 | ||||||||
Conversion of convertible preferred stock and senior subordinated secured convertible notes | 1 | $ 82,114 | $ 4 | 424,989 | $ 82,114 | |||||
Stock-based compensation - equity classified awards | 37,668 | 37,668 | ||||||||
Reclassification of common stock to class A and class B common stock (in shares) | (117,176,000) | 117,176,000 | ||||||||
Reclassification of common stock to class A and class B common stock | 0 | $ (4) | $ 4 | |||||||
Exercise of stock options (in shares) | 7,589,000 | 1,454,000 | ||||||||
Exercise of stock options | 17,892 | 17,892 | ||||||||
Net exercise of common stock warrants (in shares) | 230,000 | |||||||||
Issuance of common stock under deferred stock compensation plan (in shares) | 1,770,000 | |||||||||
Other comprehensive income (loss) | (792) | (792) | ||||||||
Net loss | (74,550) | (74,550) | ||||||||
Ending balance (in shares) at Oct. 31, 2021 | 0 | 269,515,000 | ||||||||
Ending balance (in shares) at Oct. 31, 2021 | (14,131,000) | |||||||||
Ending balance at Oct. 31, 2021 | $ 532,159 | $ 0 | $ 8 | 960,697 | $ (23,831) | (5) | (404,710) | |||
Beginning balance (in shares) at Jul. 31, 2021 | 0 | |||||||||
Beginning balance at Jul. 31, 2021 | $ 0 | |||||||||
Ending balance (in shares) at Oct. 31, 2021 | 0 | |||||||||
Ending balance at Oct. 31, 2021 | $ 0 | |||||||||
Beginning balance (in shares) at Jul. 31, 2021 | 269,029,000 | |||||||||
Beginning balance (in shares) at Jul. 31, 2021 | (14,131,000) | |||||||||
Beginning balance at Jul. 31, 2021 | 546,206 | $ 8 | 947,041 | $ (23,831) | (10) | (377,002) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of common stock upon initial public offering, net of underwriting discounts and issuance costs | 19 | 19 | ||||||||
Stock-based compensation - equity classified awards | 12,403 | 12,403 | ||||||||
Exercise of stock options (in shares) | 486,000 | |||||||||
Exercise of stock options | 1,234 | 1,234 | ||||||||
Other comprehensive income (loss) | 5 | 5 | ||||||||
Net loss | (27,708) | (27,708) | ||||||||
Ending balance (in shares) at Oct. 31, 2021 | 0 | 269,515,000 | ||||||||
Ending balance (in shares) at Oct. 31, 2021 | (14,131,000) | |||||||||
Ending balance at Oct. 31, 2021 | $ 532,159 | $ 0 | $ 8 | 960,697 | $ (23,831) | (5) | (404,710) | |||
Beginning balance (in shares) at Jan. 31, 2022 | 256,481,000 | |||||||||
Beginning balance (in shares) at Jan. 31, 2022 | (14,130,784) | (14,131,000) | ||||||||
Beginning balance at Jan. 31, 2022 | $ 515,849 | $ 8 | 982,122 | $ (23,831) | (820) | (441,630) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Conversion of convertible preferred stock and senior subordinated secured convertible notes (in shares) | 717,000 | |||||||||
Conversion of convertible preferred stock and senior subordinated secured convertible notes | 6,213 | $ 1 | 6,212 | |||||||
Stock-based compensation - equity classified awards | 41,068 | 41,068 | ||||||||
Exercise of stock options and vesting of RSUs (in shares) | 3,712,000 | |||||||||
Exercise of stock options and vesting of RSUs | $ 15,997 | 15,997 | ||||||||
Exercise of stock options (in shares) | 3,429,000 | |||||||||
Other comprehensive income (loss) | $ (6,624) | (6,624) | ||||||||
Net loss | $ (55,075) | (55,075) | ||||||||
Ending balance (in shares) at Oct. 31, 2022 | 260,910,000 | |||||||||
Ending balance (in shares) at Oct. 31, 2022 | (14,130,784) | (14,131,000) | ||||||||
Ending balance at Oct. 31, 2022 | $ 517,428 | $ 9 | 1,045,399 | $ (23,831) | (7,444) | (496,705) | ||||
Beginning balance (in shares) at Jul. 31, 2022 | 259,713,000 | |||||||||
Beginning balance (in shares) at Jul. 31, 2022 | (14,131,000) | |||||||||
Beginning balance at Jul. 31, 2022 | 508,015 | $ 9 | 1,027,849 | $ (23,831) | (5,167) | (490,845) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock-based compensation - equity classified awards | 11,982 | 11,982 | ||||||||
Exercise of stock options and vesting of RSUs (in shares) | 1,197,000 | |||||||||
Exercise of stock options and vesting of RSUs | 5,568 | 5,568 | ||||||||
Other comprehensive income (loss) | (2,277) | (2,277) | ||||||||
Net loss | $ (5,860) | (5,860) | ||||||||
Ending balance (in shares) at Oct. 31, 2022 | 260,910,000 | |||||||||
Ending balance (in shares) at Oct. 31, 2022 | (14,130,784) | (14,131,000) | ||||||||
Ending balance at Oct. 31, 2022 | $ 517,428 | $ 9 | $ 1,045,399 | $ (23,831) | $ (7,444) | $ (496,705) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Cash flow from operating activities: | ||
Net loss | $ (55,075) | $ (74,550) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization expense | 8,727 | 5,638 |
Bad debt expense | 1,161 | 47 |
Stock-based compensation expense, net of amounts capitalized | 39,920 | 37,953 |
Non-cash interest paid in kind and discount amortization | 0 | 3,266 |
Non-cash lease expense | 4,759 | |
Deferred income taxes | 0 | 1 |
Other non-cash items, net | (549) | (1,187) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 29,358 | 12,741 |
Prepaid expenses and other current assets | 27,246 | (2,395) |
Other noncurrent assets | (5,782) | (3,151) |
Accounts payable | (1,243) | (5,774) |
Operating lease right-of-use assets | (5,448) | |
Accrued expenses and other current liabilities | (625) | 16,413 |
Litigation settlement | (12,000) | 0 |
Deferred revenue | (24,578) | (7,132) |
Other liabilities | (1,285) | 197 |
Net cash provided by (used in) operating activities | 4,586 | (17,933) |
Cash flow from investing activities: | ||
Purchases of marketable securities | (640,173) | (61,758) |
Sales of marketable securities | 2,838 | 56,652 |
Maturities of marketable securities | 459,026 | 197,555 |
Purchases of property and equipment | (2,923) | (5,197) |
Capitalized internal-use software | (7,733) | (4,150) |
Acquisitions, net of cash acquired | 0 | (3,625) |
Net cash (used in) provided by investing activities | (188,965) | 179,477 |
Cash flow from financing activities: | ||
Proceeds from issuance of common stock upon initial public offering, net of underwriting discounts, commissions and other offering costs | 0 | 275,973 |
Proceeds from issuance of common stock upon exercise of stock options | 15,997 | 17,892 |
Proceeds from issuance of common stock upon ESPP purchases | 6,213 | 0 |
Net cash provided by financing activities | 22,210 | 293,865 |
Effect of exchange rate fluctuations on cash and cash equivalents | (3,232) | (1,060) |
Net change in cash and cash equivalents | (165,401) | 454,349 |
Cash and cash equivalents at beginning of period | 321,426 | 68,037 |
Cash and cash equivalents at end of period | 156,025 | 522,386 |
Supplemental disclosure of cash flow information | ||
Cash paid for income taxes, net of refunds | 5,137 | 2,525 |
Supplemental disclosure for non-cash investing and financing | ||
Net exercise of common stock warrants | 0 | 18 |
Stock-based compensation expense capitalized in internal-use software | 1,898 | 465 |
Accrued purchases of property and equipment | 92 | $ 126 |
Right of use assets obtained in exchange for operating lease liabilities | $ 5,222 |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Oct. 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. (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. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 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 accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America, (“U.S. GAAP”), and applicable rules and regulations of the Securities and Exchange Commission, (the “SEC”), regarding interim financial reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP have been condensed or omitted, and accordingly the balance sheet as of January 31, 2022, and related disclosures, have been derived from the audited consolidated financial statements at that date but do not include all of the information required by U.S. GAAP for complete consolidated financial statements. These unaudited condensed consolidated financial statements have been prepared on the same basis as the Company’s annual consolidated financial statements and, in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for the fair presentation of the Company’s condensed consolidated financial information. The results of operations for the three and nine months ended October 31, 2022 are not necessarily indicative of the results to be expected for the year ending January 31, 2023 or for any other interim period or for any other future year. The accompanying interim unaudited condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto for the year ended January 31, 2022 in the Company’s Annual Report on Form 10-K (the “2022 10-K”) filed with the SEC on April 11, 2022. Other than the adoption of the lease accounting requirements of Accounting Standard Update (“ASU”) 2016-02 , Leases (Topic 842) , there have been no material changes in the significant accounting policies as described in the Company’s consolidated financial statements for the fiscal year ended January 31, 2022 included in the 2022 10-K. 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 (“ASC 606”), 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 condensed consolidated financial statements, individually and in 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 fourth quarter of fiscal year 2022. Accordingly, the Company has revised the condensed consolidated financial statements for the prior periods presented herein. A summary of the effect of the corrections on the condensed consolidated statements of operations for the three and nine months ended October 31, 2021 were as follows (in thousands, except per share data): Three Months Ended October 31, 2021 Nine Months Ended October 31, 2021 As reported Corrections As Adjusted As reported Corrections As Adjusted Operating expenses: Research and development $ 16,621 $ (30) $ 16,591 $ 44,836 $ (119) $ 44,717 Sales and marketing 76,191 (1,493) 74,698 207,079 (2,506) 204,573 Total operating expenses 114,645 (1,523) 113,122 315,279 (2,625) 312,654 Operating loss (26,289) 1,523 (24,766) (66,299) 2,625 (63,674) Loss before provision for income taxes (27,408) 1,523 (25,885) (71,043) 2,625 (68,418) Net loss (29,231) 1,523 (27,708) (77,175) 2,625 (74,550) Net loss per share attributable to Class A and Class B stockholders, basic and diluted $ (0.11) $ — $ (0.11) $ (0.44) $ 0.01 $ (0.43) A summary of the effect of the corrections on the condensed consolidated statements of cash flows for the nine months ended October 31, 2021 were as follows (in thousands): Nine Months Ended October 31, 2021 As reported Corrections As Adjusted Net loss (77,175) 2,625 (74,550) Changes in operating assets and liabilities Prepaid expenses and other current assets (1,104) (1,291) (2,395) Other non-current assets (1,817) (1,334) (3,151) For all periods in which the Company corrected net loss, the Company made corresponding corrections to net loss and comprehensive loss, in the condensed consolidated statements of comprehensive loss and to net loss, accumulated deficit and total stockholders’ equity in the condensed consolidated statements of stockholders’ equity. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions made in the accompanying consolidated financial statements include, but are not limited to, common stock valuations and stock-based compensation expense, software costs eligible for capitalization, recoverability of long-lived and intangible assets and the allowance for doubtful accounts. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and on assumptions that it believes are reasonable and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates and assumptions. 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. Leases On February 1, 2022, the Company adopted the lease accounting requirements of Accounting Standard Update (“ASU”) 2016-02 , Leases (Topic 842). Under Topic 842, the Company determines if an arrangement is a lease at inception, and leases are classified at commencement as either operating or finance leases. As of October 31, 2022, the Company did not have any finance leases. Right-of-use (“ROU”) assets and lease liabilities are recognized at commencement based on the present value of the minimum lease payments over the lease term. The Company utilizes certain practical expedients and policy elections available under Topic 842. Leases with an initial term of 12 months or less are not recognized on the balance sheet. Additionally, the Company has elected not to separate lease components from non-lease components for all asset classes. Non-lease components that are not fixed are expensed as incurred as variable lease costs. The Company uses the incremental borrowing rate based on information available at the commencement date in determining the present value of future lease payments. The rate is an estimate of the collateralized borrowing rate the Company would incur on future lease payments over a similar term. The Company leases facilities under non-cancelable operating lease agreements. Certain of the operating lease agreements contain rent concessions and rent escalations that are included in the present value calculation of minimum lease payments. Topic 842 requires that operating leases recognize expense on a straight-line basis over the lease term. The lease term begins on the date the Company has the right to use the leased property. Lease terms may include options to extend or terminate the lease. These options are included in the ROU asset and lease liability when it is reasonably certain that the option will be exercised. The Company's lease agreements do not contain residual value guarantees or covenants. Prior to the February 1, 2022 adoption of Topic 842, ROU asset and lease liabilities were not recognized for operating leases. Rent concessions and rent escalation provisions were considered in determining the straight-line rent expense to be recovered over the lease term. Concentration of Risk and Significant Customers The Company has no significant off-balance sheet risks related to foreign currency exchange contracts, option contracts or other foreign currency hedging arrangements. The Company’s financial instruments that are potentially subject to credit risk consist primarily of cash and cash equivalents and accounts receivable. Although the Company deposits its cash with multiple financial institutions, its deposits generally exceed federally insured limits. The Company’s accounts receivable are derived from invoiced customers located primarily in North America and Europe. The Company performs periodic credit evaluations of its customers and generally does not require collateral. No single customer accounted for more than 10% of total revenue in the three or nine months ended October 31, 2022 and 2021. In addition, the Company relies upon third-party hosted infrastructure partners globally to serve customers and operate certain aspects of its services, such as environments for development testing, training, sales demonstrations, and production usage. Given this, any disruption of or interference at the Company's hosted infrastructure partners would impact the Company’s operations and could adversely impact its business. Revenue Recognition The Company accounts for revenue in accordance with ASC 606. For further discussion of the Company’s accounting policies related to revenue, see Note 3, Revenue Recognition. 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 in prior years. The Company estimates compensation cost based on the grant date fair value and recognize the expense on a graded vesting basis over the vesting period of the award. As the PSUs are subject to a market condition (stock price), the grant date fair value is measured using a Monte Carlo simulation approach, which estimates the fair value of awards based on randomly generated simulated stock-price paths through a lattice-type structure. The performance-based vesting condition 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 Company’s initial public offering (“IPO”) in June 2021, the Company determines the fair value using the closing price of its Class A common stock on the date of grant. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 , Leases (Topic 842) , and additional changes, modifications, clarifications or interpretations related to this guidance thereafter (“ASU 2016-02”). ASU 2016-02 requires a reporting entity to recognize ROU assets and lease liabilities on the balance sheet for operating leases to increase transparency and comparability. Effective February 1, 2022, the Company adopted the standard and elected the package of transition practical expedients that allowed the Company 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 to not separate lease components from non-lease components for all asset classes. The Company also made an accounting policy election not to 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 its consolidated statement of operation 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. Recently Issued Accounting Pronouncements Not Yet Adopted 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 expects to adopt this guidance on January 31, 2023 effective February 1, 2022 as the Company will cease to qualify as an “emerging growth company” as of January 31, 2023. There is no material impact to the consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Oct. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue RecognitionThe Company derives its revenues primarily from (i) subscription revenue, which consists of subscription fees from customers accessing the Company’s cloud-based software platform and applications, as well as related customer support services; and (ii) professional services revenue, which 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. 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. The Company determines the period of benefit by taking into consideration the length of its customer contracts, customer relationship period, technology lifecycle, and other factors. The Company has historically estimated such period of benefit to be three years. During the first quarter of fiscal 2023, the Company updated the period of benefit, noting that recent customer relationship periods extended to an average period of five years. Accordingly, the Company noted a change in estimate of the amortization period of these costs and will prospectively amortize over a period of benefit of five years. The change in amortization period resulted in an immaterial impact to sales and marketing expense for the three and nine months ended October 31, 2022. Sales commissions paid for renewals are not commensurate with commissions paid on the initial contract given the substantive difference in commission rates in proportion to their respective contract values. Amortization expense is recorded in sales and marketing expense within the Company’s condensed consolidated statement of operations. Capitalized costs to obtain customer contracts as of October 31, 2022 were $88.7 million, of which $40.0 million is included in prepaid expenses and other current assets and $48.7 million within other non-current assets. 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. During the three months ended October 31, 2022 and 2021, the Company amortized $11.3 million and $9.0 million, respectively, of costs to obtain customer contracts, included in sales and marketing expense. During the nine months ended October 31, 2022 and 2021, the Company amortized $33.5 million and $25.7 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 Deferred revenue consists primarily of customer billings made in advance of performance obligations being satisfied and revenue being recognized. The Company recognized revenue of $131.0 million and $250.6 million for the three and nine months ended October 31, 2022, respectively, and $104.4 million and $194.0 million for the three and nine months ended October 31, 2021, respectively, that was included in the deferred revenue balances at the beginning of the respective periods. The Company receives payments from customers based on billing schedules as established in its contracts. Contract assets represent amounts for which the Company has recognized revenue in excess of billings pursuant to the revenue recognition guidance. At October 31, 2022 and January 31, 2022, contract assets were $3.7 million and $3.2 million, respectively, and were included in prepaid expenses and other current assets. Remaining Performance Obligation Remaining Performance Obligation (“RPO”) represents contracted revenues that had not yet been recognized and includes deferred revenues and amounts that will be invoiced and recognized in future periods. As of October 31, 2022, the Company’s RPO was $586.1 million, approximately $420.2 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 location and market, as it believes it best depicts how the nature, amount, timing, and uncertainty of its revenues and cash flows are affected by economic factors. Refer to Note 13, Geographic Information, for revenue by geographic location. |
Marketable Securities
Marketable Securities | 9 Months Ended |
Oct. 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 condensed consolidated balance sheets (in thousands): October 31, 2022 Amortized Cost Unrealized Gain Unrealized Losses Fair value Corporate bonds $ 103,088 $ — $ (490) $ 102,598 U.S. government and agency securities 131,327 — (610) 130,717 Commercial paper 110,482 — (518) 109,964 Certificate of deposits 45,142 1 (333) 44,810 Marketable securities $ 390,039 $ 1 $ (1,951) $ 388,089 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 As of October 31, 2022 and January 31, 2022, the maturities of available-for-sale marketable securities did not exceed 12 months. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables present information about the Company’s financial assets and liabilities that have been measured at fair value on a recurring basis as of October 31, 2022 and January 31, 2022, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): October 31, 2022 January 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial Assets: Cash Equivalents: Money market funds $ 70,921 $ — $ — $ 70,921 $ 281,091 $ — $ — $ 281,091 Marketable Securities: Corporate bonds — 102,598 — 102,598 — 124,477 — 124,477 U.S. government and agency securities — 130,717 — 130,717 — 37,690 — 37,690 Commercial paper — 109,964 — 109,964 — 48,816 — 48,816 Certificate of deposits — 44,810 — 44,810 — — — — Total financial assets $ 70,921 $ 388,089 $ — $ 459,010 $ 281,091 $ 210,983 $ — $ 492,074 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. |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Oct. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Balance Sheet Components | Balance Sheet Components Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): October 31, January 31, Prepaid hosting and data costs $ 16,923 $ 46,513 Prepaid software costs 6,304 5,765 Capitalized commissions costs, current portion 39,996 40,695 Prepaid insurance 2,828 2,118 Contract assets 3,723 3,161 Other 10,783 10,915 Prepaid expenses and other current assets $ 80,557 $ 109,167 Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): October 31, January 31, Computer equipment $ 15,787 $ 13,544 Office furniture and other 1,951 1,256 Leasehold improvements 4,146 3,930 Less accumulated depreciation and amortization (15,162) (12,433) Total fixed assets, net 6,722 6,297 Capitalized internal-use software 32,696 23,065 Less accumulated amortization (18,739) (14,657) Total capitalized internal-use software 13,957 8,408 Property and equipment, net $ 20,679 $ 14,705 Depreciation and amortization expense consisted of the following (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 Depreciation and amortization expense 1,634 1,198 4,646 2,994 Amortization expense for capitalized internal-use software 1,591 876 4,081 2,367 The Company capitalized internal-use software costs, including stock-based compensation, of $3.7 million and $1.9 million in the three months ended October 31, 2022 and 2021, respectively, and $9.6 million and $4.6 million in the nine months ended October 31, 2022 and 2021, respectively. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): October 31, January 31, Bonuses $ 16,686 $ 22,622 Commissions 14,886 16,496 Employee liabilities (1) 21,548 21,668 Accrued litigation settlement (2) — 12,000 Purchased media costs (3) 3,181 3,227 Accrued sales and use tax liability 6,324 6,935 Accrued income taxes 5,003 2,559 Professional services 1,270 1,062 Other 19,471 13,651 $ 88,369 $ 100,220 (1) Includes $3.8 million and $2.3 million of accrued employee contributions under the Company's 2021 Employee Stock Purchase Plan (“ESPP”) at October 31, 2022 and January 31, 2022, respectively. (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 Acts, among other claims. (3) Purchased media costs consist of amounts owed to the Company’s vendors for the purchase of advertising space on behalf of its customers. |
Leases
Leases | 9 Months Ended |
Oct. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases for corporate offices under non-cancelable operating leases with various expiration dates. There are no finance leases. The components of lease expense were as follows (in thousands): Three Months Ended October 31, 2022 Nine Months Ended October 31, 2022 Operating lease cost $ 2,047 $ 5,777 Variable lease cost 6 18 Short-term lease cost 168 534 Total lease cost $ 2,221 $ 6,329 The weighted average remaining lease term and discount rate were as follows: October 31, 2022 Weighted average remaining lease term 2.6 years Weighted average discount rate 11.7 % The maturities of lease liabilities under non-cancelable operating leases, net of lease incentives, was as follows (in thousands): October 31, 2022 Remainder of 2023 $ 1,716 2024 7,805 2025 3,511 2026 2,429 2027 1,208 Thereafter — Total minimum lease payments 16,669 Less: imputed interest (2,375) Total $ 14,294 Rent expense for operating leases for the three and nine months ended October 31, 2021, which were accounted for under ASC 840, Leases (“ASC 840”), was $2.2 million and $5.5 million, respectively. As previously disclosed in the Company's consolidated financial statements as of and for the year ended January 31, 2022 and under the previous lease accounting standard, 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 |
Credit Agreement
Credit Agreement | 9 Months Ended |
Oct. 31, 2022 | |
Debt Disclosure [Abstract] | |
Credit Agreement | Credit AgreementThe Company maintains a credit agreement with Silicon Valley Bank (as amended from time to time, 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 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 December 19, 2022, requires the Company to maintain certain monthly adjusted quick ratio and quarterly minimum consolidated adjusted earnings before income taxes, depreciation and amortization. As of October 31, 2022 and January 31, 2022, the Company had no amounts outstanding under the SVB Credit Facility. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Letters of Credit As of October 31, 2022 and January 31, 2022, the Company had an aggregate availability of $1.3 million and $0.7 million, respectively, under letters of credit primarily related to one of its leases. These letters of credit have not been drawn down as of October 31, 2022. Legal Matters From time to time, the Company, various subsidiaries, and certain current and former officers may be named as defendants in various lawsuits, claims, investigations and proceedings arising from the normal course of business. The Company also may become involved with contract issues and disputes with customers. With respect to litigation in general, based on the Company’s experience, management believes that the amount of damages claimed in a case are not a meaningful indicator of the potential liability. Claims, suits, investigations and proceedings are inherently uncertain and it is not possible to predict the ultimate outcome of cases. The Company believes that it has valid defenses with respect to the legal matters pending against the Company and intends to vigorously contest each of them. The Company makes a provision for a liability relating to legal matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. In management’s opinion, resolution of all current matters is not expected to have a material adverse impact on the Company’s condensed consolidated results of operations, cash flows or financial position. However, if an unfavorable ruling were to occur in any specific period, there exists the possibility of a material adverse impact on the results of operations for that period. At October 31, 2022, the Company had no provision for liability under existing litigation. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Oct. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Summary of Stock Option Activity A summary of the Company’s stock option activity for the Plan for the three and nine months ended October 31, 2022 is as follows: Number of stock options Weighted average exercise price Weighted average remaining contractual life (in thousands) (in years) Outstanding as of January 31, 2022 44,355 6.23 7.8 Exercised (3,429) 4.66 Cancelled/forfeited (4,881) 8.27 Expired (12) 4.24 Outstanding as of October 31, 2022 36,033 6.10 6.9 Exercisable as of October 31, 2022 24,609 $ 5.39 6.5 Vested and expected to vest as of October 31, 2022 33,439 $ 5.87 6.8 Restricted Stock Units A summary of the Company’s RSU award activity was as follows: Number of restricted shares Weighted Average Grant Date Fair Value (in thousands) Outstanding as of January 31, 2022 1,730 $ 14.67 Granted 8,770 12.47 Released (296) 14.04 Cancelled/forfeited (1,002) 13.94 Outstanding as of October 31, 2022 9,202 $ 12.69 Stock-Based Compensation Expense Stock-based compensation expense included in operating results was allocated as follows (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 Costs of subscription $ 282 $ 589 $ 1,079 $ 1,411 Costs of professional services 368 889 1,770 1,911 Research and development 2,204 2,186 7,700 4,915 Sales and marketing 5,071 4,997 18,736 13,963 General and administrative 3,284 3,760 10,635 15,753 Stock-based compensation, net of amounts capitalized 11,209 12,421 39,920 37,953 Capitalized stock-based compensation 1,023 232 1,898 465 Total stock-based compensation $ 12,232 $ 12,653 $ 41,818 $ 38,418 Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 Equity classified awards $ 11,982 12,403 $ 41,068 $ 37,668 Other awards (1) 250 250 750 750 $ 12,232 $ 12,653 $ 41,818 $ 38,418 (1) Nonemployee grant recorded over five years, representing the same period and in the same manner as if the grantor had paid cash for the services instead of paying with or using the share-based payment award. Employee Stock Purchase Plan During the second quarter of fiscal year 2023, the fair market value of the Company's stock on the purchase date, June 15, 2022, was lower than the fair market value of the Company's stock on the offering date. As a result, the 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 $3.7 million, which will be recognized over the remaining requisite service period. As of October 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: October 31, 2022 Unrecognized expense Weighted average expense recognition period (in thousands) (in years) Stock options $ 24,174 2.2 Performance share units 1,526 2.3 Restricted stock units 54,660 3.4 ESPP 2,417 0.7 |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Oct. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share Prior to the Company's IPO in June 2021, the Company computed net loss per share using the two-class method required for participating securities. The two-class method required income available to ordinary stockholders 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 considered its convertible preferred shares to be participating securities, as the holders of the convertible preferred shares were 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 did not contractually require the holders of such shares to participate in the Company’s losses. As such, net loss was not allocated to the Company’s participating securities. Basic loss per share is computed by dividing net loss attributable to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) for the period. In periods when the Company had income, the Company calculated basic earnings per share using the two-class method, if required, pursuant to ASC 260, Earnings Per Share. The two-class method was required effective with the issuance of convertible preferred stock in the past because this class of stock qualified as a participating security, giving the holder the right to receive dividends should dividends be declared on common stock. Under the two-class method, earnings for a period were allocated on a pro rata basis to the common stockholders and to the holders of convertible preferred stock based on the weighted average number of common shares outstanding and number of shares that could be issued upon conversion. In periods of losses, diluted loss per share is computed on the same basis as basic loss per share as the inclusion of any other potential shares outstanding would be anti-dilutive. Following the Company’s IPO in June 2021, the Company has two classes of common stock: Class A common stock and Class B common stock. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting, conversion and transfer rights. All shares of the Company’s capital stock outstanding immediately prior to the Company’s IPO, including all shares held by executive officers, directors and their respective affiliates, and all shares issuable on the conversion of outstanding convertible preferred stock, were converted into shares of the Company’s Class B common stock immediately prior to the completion of the offering. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis to each class of common stock and the resulting basic and diluted net loss per share attributable to common stockholders are, therefore, the same for both Class A and Class B common stock on both an individual and combined basis. The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share amounts): Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 Net loss per share - basic and diluted: Numerator: Net loss attributable to Sprinklr for basic net loss per share $ (5,860) $ (27,708) $ (55,075) $ (74,550) Denominator: Weighted-average shares outstanding used in computing net loss per share attributable to Class A and Class B common stockholders - basic and diluted 260,285 255,195 258,677 174,497 Net loss per common share attributable to Class A and Class B common stockholders - basic and diluted $ (0.02) $ (0.11) $ (0.21) $ (0.43) Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows (in thousands): 2022 2021 Options to purchase common stock 36,033 45,767 Performance share units 2,295 3,175 Restricted stock units 9,202 765 ESPP 409 293 Warrants to purchase common stock 2,500 2,500 Total shares excluded from net loss per share 50,439 52,500 |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company computes its year-to-date provision for income taxes by applying the estimated annual effective tax rate to year-to-date pretax income or loss and adjusts the provision for discrete tax items recorded in the period. During the three months ended October 31, 2022 and 2021, the Company recorded an income tax expense of $2.4 million and $1.8 million, respectively, and income tax expense of $7.0 million and $6.1 million for the nine months ended October 31, 2022 and 2021, respectively. The Company’s effective tax rate generally differs from the U.S. federal statutory tax rate primarily due to a full valuation allowance related to the Company’s U.S. deferred tax assets, partially offset by state taxes and the foreign tax rate differential on non-U.S. income. The Company regularly evaluates the realizability of its deferred tax assets and establishes a valuation allowance if it is more likely than not that some or all the deferred tax assets will not be realized. In making such a determination, the Company considers all available positive and negative evidence. As of October 31, 2022, the Company continues to maintain a full valuation allowance against the deferred tax assets for the U.S. and certain international entities. During the three and nine months ended October 31, 2022, the Company recorded a $0.1 million and $0.3 million reserve, respectively, related to unrecognized tax benefits. The Inflation Reduction Act of 2022 (“IRA”) was signed into law on August 16, 2022. The bill was meant to address the high inflation rate in the U.S. through various climate, energy, healthcare, and other incentives. These incentives are meant to be paid |
Geographic Information
Geographic Information | 9 Months Ended |
Oct. 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 the cloud - based software platform (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 Americas $ 104,932 $ 80,333 $ 295,288 $ 226,573 EMEA 43,647 35,406 127,099 99,838 Other 8,672 11,317 30,472 30,317 $ 157,251 $ 127,056 $ 452,859 $ 356,728 The United States was the only country that represented more than 10% of the Company’s revenues. The following table represents the revenue in the United States for the three and nine months ended October 31, 2022 and 2021. Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 United States $ 99,844 $ 75,351 $ 278,352 $ 212,253 Long-lived assets by geographical region are based on the location of the legal entity that owns the assets. As of October 31, 2022 and January 31, 2022, long lived assets by geographic region were as follows (in thousands): October 31, January 31, Americas (1) $ 15,975 $ 10,472 EMEA 943 1,551 Other 3,761 2,682 $ 20,679 $ 14,705 (1) Includes $15.8 million and $10.2 million of fixed assets held in the United States at October 31, 2022 and January 31, 2022, respectively. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Oct. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party TransactionsThe Company engaged Lyearn Inc. (“Lyearn”), a learning management system company that is wholly owned by Ragy Thomas, our Founder, Chairman and Chief Executive Officer, in connection with the provision of digital training services to the Company’s employees and certain Sprinklr customers. The Company has paid approximately $0.1 million and $0.1 million to Lyearn in connection with the digital training services provided to a customer for the three and nine months ended October 31, 2022, respectively. The Company paid approximately $0.1 million and $0.1 million to Lyearn in connection with the digital training services provided to its employees during the three and nine months ended October 31, 2021, respectively. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America, (“U.S. GAAP”), and applicable rules and regulations of the Securities and Exchange Commission, (the “SEC”), regarding interim financial reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP have been condensed or omitted, and accordingly the balance sheet as of January 31, 2022, and related disclosures, have been derived from the audited consolidated financial statements at that date but do not include all of the information required by U.S. GAAP for complete consolidated financial statements. These unaudited condensed consolidated financial statements have been prepared on the same basis as the Company’s annual consolidated financial statements and, in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for the fair presentation of the Company’s condensed consolidated financial information. The results of operations for the three and nine months ended October 31, 2022 are not necessarily indicative of the results to be expected for the year ending January 31, 2023 or for any other interim period or for any other future year. The accompanying interim unaudited condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto for the year ended January 31, 2022 in the Company’s Annual Report on Form 10-K (the “2022 10-K”) filed with the SEC on April 11, 2022. |
Use of Estimates | Use of EstimatesThe preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions made in the accompanying consolidated financial statements include, but are not limited to, common stock valuations and stock-based compensation expense, software costs eligible for capitalization, recoverability of long-lived and intangible assets and the allowance for doubtful accounts. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and on assumptions that it believes are reasonable and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates and assumptions. |
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. |
Leases | Leases On February 1, 2022, the Company adopted the lease accounting requirements of Accounting Standard Update (“ASU”) 2016-02 , Leases (Topic 842). Under Topic 842, the Company determines if an arrangement is a lease at inception, and leases are classified at commencement as either operating or finance leases. As of October 31, 2022, the Company did not have any finance leases. Right-of-use (“ROU”) assets and lease liabilities are recognized at commencement based on the present value of the minimum lease payments over the lease term. The Company utilizes certain practical expedients and policy elections available under Topic 842. Leases with an initial term of 12 months or less are not recognized on the balance sheet. Additionally, the Company has elected not to separate lease components from non-lease components for all asset classes. Non-lease components that are not fixed are expensed as incurred as variable lease costs. The Company uses the incremental borrowing rate based on information available at the commencement date in determining the present value of future lease payments. The rate is an estimate of the collateralized borrowing rate the Company would incur on future lease payments over a similar term. The Company leases facilities under non-cancelable operating lease agreements. Certain of the operating lease agreements contain rent concessions and rent escalations that are included in the present value calculation of minimum lease payments. Topic 842 requires that operating leases recognize expense on a straight-line basis over the lease term. The lease term begins on the date the Company has the right to use the leased property. Lease terms may include options to extend or terminate the lease. These options are included in the ROU asset and lease liability when it is reasonably certain that the option will be exercised. The Company's lease agreements do not contain residual value guarantees or covenants. Prior to the February 1, 2022 adoption of Topic 842, ROU asset and lease liabilities were not recognized for operating leases. Rent concessions and rent escalation provisions were considered in determining the straight-line rent expense to be recovered over the lease term. |
Concentration of Risk and Significant Customers | Concentration of Risk and Significant Customers The Company has no significant off-balance sheet risks related to foreign currency exchange contracts, option contracts or other foreign currency hedging arrangements. The Company’s financial instruments that are potentially subject to credit risk consist primarily of cash and cash equivalents and accounts receivable. Although the Company deposits its cash with multiple financial institutions, its deposits generally exceed federally insured limits. The Company’s accounts receivable are derived from invoiced customers located primarily in North America and Europe. The Company performs periodic credit evaluations of its customers and generally does not require collateral. No single customer accounted for more than 10% of total revenue in the three or nine months ended October 31, 2022 and 2021. In addition, the Company relies upon third-party hosted infrastructure partners globally to serve customers and operate certain aspects of its services, such as environments for development testing, training, sales demonstrations, and production usage. Given this, any disruption of or interference at the Company's hosted infrastructure partners would impact the Company’s operations and could adversely impact its business. |
Revenue Recognition | Revenue RecognitionThe Company accounts for revenue in accordance with ASC 606.Revenue RecognitionThe Company derives its revenues primarily from (i) subscription revenue, which consists of subscription fees from customers accessing the Company’s cloud-based software platform and applications, as well as related customer support services; and (ii) professional services revenue, which 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. 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 |
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 in prior years. The Company estimates compensation cost based on the grant date fair value and recognize the expense on a graded vesting basis over the vesting period of the award. As the PSUs are subject to a market condition (stock price), the grant date fair value is measured using a Monte Carlo simulation approach, which estimates the fair value of awards based on randomly generated simulated stock-price paths through a lattice-type structure. The performance-based vesting condition 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 Company’s initial public offering (“IPO”) in June 2021, the Company determines the fair value using the closing price of its Class A common stock on the date of grant. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 , Leases (Topic 842) , and additional changes, modifications, clarifications or interpretations related to this guidance thereafter (“ASU 2016-02”). ASU 2016-02 requires a reporting entity to recognize ROU assets and lease liabilities on the balance sheet for operating leases to increase transparency and comparability. Effective February 1, 2022, the Company adopted the standard and elected the package of transition practical expedients that allowed the Company 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 to not separate lease components from non-lease components for all asset classes. The Company also made an accounting policy election not to 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 its consolidated statement of operation 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. Recently Issued Accounting Pronouncements Not Yet Adopted 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 expects to adopt this guidance on January 31, 2023 effective February 1, 2022 as the Company will cease to qualify as an “emerging growth company” as of January 31, 2023. There is no material impact to the consolidated financial statements. |
Fair Value Measurement | 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. |
Net Loss Per Share | Prior to the Company's IPO in June 2021, the Company computed net loss per share using the two-class method required for participating securities. The two-class method required income available to ordinary stockholders 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 considered its convertible preferred shares to be participating securities, as the holders of the convertible preferred shares were 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 did not contractually require the holders of such shares to participate in the Company’s losses. As such, net loss was not allocated to the Company’s participating securities. Basic loss per share is computed by dividing net loss attributable to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) for the period. In periods when the Company had income, the Company calculated basic earnings per share using the two-class method, if required, pursuant to ASC 260, Earnings Per Share. The two-class method was required effective with the issuance of convertible preferred stock in the past because this class of stock qualified as a participating security, giving the holder the right to receive dividends should dividends be declared on common stock. Under the two-class method, earnings for a period were allocated on a pro rata basis to the common stockholders and to the holders of convertible preferred stock based on the weighted average number of common shares outstanding and number of shares that could be issued upon conversion. In periods of losses, diluted loss per share is computed on the same basis as basic loss per share as the inclusion of any other potential shares outstanding would be anti-dilutive. Following the Company’s IPO in June 2021, the Company has two classes of common stock: Class A common stock and Class B common stock. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting, conversion and transfer rights. All shares of the Company’s capital stock outstanding immediately prior to the Company’s IPO, including all shares held by executive officers, directors and their respective affiliates, and all shares issuable |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Oct. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of the Effect of Corrections | A summary of the effect of the corrections on the condensed consolidated statements of operations for the three and nine months ended October 31, 2021 were as follows (in thousands, except per share data): Three Months Ended October 31, 2021 Nine Months Ended October 31, 2021 As reported Corrections As Adjusted As reported Corrections As Adjusted Operating expenses: Research and development $ 16,621 $ (30) $ 16,591 $ 44,836 $ (119) $ 44,717 Sales and marketing 76,191 (1,493) 74,698 207,079 (2,506) 204,573 Total operating expenses 114,645 (1,523) 113,122 315,279 (2,625) 312,654 Operating loss (26,289) 1,523 (24,766) (66,299) 2,625 (63,674) Loss before provision for income taxes (27,408) 1,523 (25,885) (71,043) 2,625 (68,418) Net loss (29,231) 1,523 (27,708) (77,175) 2,625 (74,550) Net loss per share attributable to Class A and Class B stockholders, basic and diluted $ (0.11) $ — $ (0.11) $ (0.44) $ 0.01 $ (0.43) A summary of the effect of the corrections on the condensed consolidated statements of cash flows for the nine months ended October 31, 2021 were as follows (in thousands): Nine Months Ended October 31, 2021 As reported Corrections As Adjusted Net loss (77,175) 2,625 (74,550) Changes in operating assets and liabilities Prepaid expenses and other current assets (1,104) (1,291) (2,395) Other non-current assets (1,817) (1,334) (3,151) |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Oct. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-For-Sale Marketable Securities | The following is a summary of available-for-sale marketable securities, excluding those securities classified within cash and cash equivalents on the condensed consolidated balance sheets (in thousands): October 31, 2022 Amortized Cost Unrealized Gain Unrealized Losses Fair value Corporate bonds $ 103,088 $ — $ (490) $ 102,598 U.S. government and agency securities 131,327 — (610) 130,717 Commercial paper 110,482 — (518) 109,964 Certificate of deposits 45,142 1 (333) 44,810 Marketable securities $ 390,039 $ 1 $ (1,951) $ 388,089 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 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present information about the Company’s financial assets and liabilities that have been measured at fair value on a recurring basis as of October 31, 2022 and January 31, 2022, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): October 31, 2022 January 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial Assets: Cash Equivalents: Money market funds $ 70,921 $ — $ — $ 70,921 $ 281,091 $ — $ — $ 281,091 Marketable Securities: Corporate bonds — 102,598 — 102,598 — 124,477 — 124,477 U.S. government and agency securities — 130,717 — 130,717 — 37,690 — 37,690 Commercial paper — 109,964 — 109,964 — 48,816 — 48,816 Certificate of deposits — 44,810 — 44,810 — — — — Total financial assets $ 70,921 $ 388,089 $ — $ 459,010 $ 281,091 $ 210,983 $ — $ 492,074 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Oct. 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): October 31, January 31, Prepaid hosting and data costs $ 16,923 $ 46,513 Prepaid software costs 6,304 5,765 Capitalized commissions costs, current portion 39,996 40,695 Prepaid insurance 2,828 2,118 Contract assets 3,723 3,161 Other 10,783 10,915 Prepaid expenses and other current assets $ 80,557 $ 109,167 |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): October 31, January 31, Computer equipment $ 15,787 $ 13,544 Office furniture and other 1,951 1,256 Leasehold improvements 4,146 3,930 Less accumulated depreciation and amortization (15,162) (12,433) Total fixed assets, net 6,722 6,297 Capitalized internal-use software 32,696 23,065 Less accumulated amortization (18,739) (14,657) Total capitalized internal-use software 13,957 8,408 Property and equipment, net $ 20,679 $ 14,705 Depreciation and amortization expense consisted of the following (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 Depreciation and amortization expense 1,634 1,198 4,646 2,994 Amortization expense for capitalized internal-use software 1,591 876 4,081 2,367 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): October 31, January 31, Bonuses $ 16,686 $ 22,622 Commissions 14,886 16,496 Employee liabilities (1) 21,548 21,668 Accrued litigation settlement (2) — 12,000 Purchased media costs (3) 3,181 3,227 Accrued sales and use tax liability 6,324 6,935 Accrued income taxes 5,003 2,559 Professional services 1,270 1,062 Other 19,471 13,651 $ 88,369 $ 100,220 (1) Includes $3.8 million and $2.3 million of accrued employee contributions under the Company's 2021 Employee Stock Purchase Plan (“ESPP”) at October 31, 2022 and January 31, 2022, respectively. (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 Acts, among other claims. (3) Purchased media costs consist of amounts owed to the Company’s vendors for the purchase of advertising space on behalf of its customers. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Oct. 31, 2022 | |
Leases [Abstract] | |
Schedule of Lease Cost | The components of lease expense were as follows (in thousands): Three Months Ended October 31, 2022 Nine Months Ended October 31, 2022 Operating lease cost $ 2,047 $ 5,777 Variable lease cost 6 18 Short-term lease cost 168 534 Total lease cost $ 2,221 $ 6,329 The weighted average remaining lease term and discount rate were as follows: October 31, 2022 Weighted average remaining lease term 2.6 years Weighted average discount rate 11.7 % |
Schedule of Maturities of Lease Liabilities | The maturities of lease liabilities under non-cancelable operating leases, net of lease incentives, was as follows (in thousands): October 31, 2022 Remainder of 2023 $ 1,716 2024 7,805 2025 3,511 2026 2,429 2027 1,208 Thereafter — Total minimum lease payments 16,669 Less: imputed interest (2,375) Total $ 14,294 |
Schedule of Future Minimum Rental Payments for Operating Leases Under ASC 840 | As previously disclosed in the Company's consolidated financial statements as of and for the year ended January 31, 2022 and under the previous lease accounting standard, 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 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Oct. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | A summary of the Company’s stock option activity for the Plan for the three and nine months ended October 31, 2022 is as follows: Number of stock options Weighted average exercise price Weighted average remaining contractual life (in thousands) (in years) Outstanding as of January 31, 2022 44,355 6.23 7.8 Exercised (3,429) 4.66 Cancelled/forfeited (4,881) 8.27 Expired (12) 4.24 Outstanding as of October 31, 2022 36,033 6.10 6.9 Exercisable as of October 31, 2022 24,609 $ 5.39 6.5 Vested and expected to vest as of October 31, 2022 33,439 $ 5.87 6.8 |
Schedule of RSU Award Activity | A summary of the Company’s RSU award activity was as follows: Number of restricted shares Weighted Average Grant Date Fair Value (in thousands) Outstanding as of January 31, 2022 1,730 $ 14.67 Granted 8,770 12.47 Released (296) 14.04 Cancelled/forfeited (1,002) 13.94 Outstanding as of October 31, 2022 9,202 $ 12.69 |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense included in operating results was allocated as follows (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 Costs of subscription $ 282 $ 589 $ 1,079 $ 1,411 Costs of professional services 368 889 1,770 1,911 Research and development 2,204 2,186 7,700 4,915 Sales and marketing 5,071 4,997 18,736 13,963 General and administrative 3,284 3,760 10,635 15,753 Stock-based compensation, net of amounts capitalized 11,209 12,421 39,920 37,953 Capitalized stock-based compensation 1,023 232 1,898 465 Total stock-based compensation $ 12,232 $ 12,653 $ 41,818 $ 38,418 Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 Equity classified awards $ 11,982 12,403 $ 41,068 $ 37,668 Other awards (1) 250 250 750 750 $ 12,232 $ 12,653 $ 41,818 $ 38,418 (1) Nonemployee grant recorded over five years, representing the same period and in the same manner as if the grantor had paid cash for the services instead of paying with or using the share-based payment award. |
Schedule of Unrecognized Compensation Cost Related to Unvested Awards Not Yet Recognized | As of October 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: October 31, 2022 Unrecognized expense Weighted average expense recognition period (in thousands) (in years) Stock options $ 24,174 2.2 Performance share units 1,526 2.3 Restricted stock units 54,660 3.4 ESPP 2,417 0.7 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Oct. 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): Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 Net loss per share - basic and diluted: Numerator: Net loss attributable to Sprinklr for basic net loss per share $ (5,860) $ (27,708) $ (55,075) $ (74,550) Denominator: Weighted-average shares outstanding used in computing net loss per share attributable to Class A and Class B common stockholders - basic and diluted 260,285 255,195 258,677 174,497 Net loss per common share attributable to Class A and Class B common stockholders - basic and diluted $ (0.02) $ (0.11) $ (0.21) $ (0.43) Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows (in thousands): 2022 2021 Options to purchase common stock 36,033 45,767 Performance share units 2,295 3,175 Restricted stock units 9,202 765 ESPP 409 293 Warrants to purchase common stock 2,500 2,500 Total shares excluded from net loss per share 50,439 52,500 |
Geographic Information (Tables)
Geographic Information (Tables) | 9 Months Ended |
Oct. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Region | The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use the cloud - based software platform (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 Americas $ 104,932 $ 80,333 $ 295,288 $ 226,573 EMEA 43,647 35,406 127,099 99,838 Other 8,672 11,317 30,472 30,317 $ 157,251 $ 127,056 $ 452,859 $ 356,728 Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 United States $ 99,844 $ 75,351 $ 278,352 $ 212,253 |
Schedule of Long-lived Assets by Geographical Regions | As of October 31, 2022 and January 31, 2022, long lived assets by geographic region were as follows (in thousands): October 31, January 31, Americas (1) $ 15,975 $ 10,472 EMEA 943 1,551 Other 3,761 2,682 $ 20,679 $ 14,705 (1) Includes $15.8 million and $10.2 million of fixed assets held in the United States at October 31, 2022 and January 31, 2022, respectively. |
Organization and Description _2
Organization and Description of Business (Details) | Oct. 31, 2022 subsidiary |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of subsidiaries | 18 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of the Effect of Corrections (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Research and development | $ 19,208 | $ 16,591 | $ 56,531 | $ 44,717 |
Sales and marketing | 79,538 | 74,698 | 253,418 | 204,573 |
Total operating expenses | 121,334 | 113,122 | 377,865 | 312,654 |
Operating loss | (4,603) | (24,766) | (49,406) | (63,674) |
Loss before provision for income taxes | $ (3,510) | (25,885) | $ (48,102) | (68,418) |
Net loss | $ (27,708) | $ (74,550) | ||
Net loss per share attributable to Class A and Class B common stockholders, basic (in dollars per share) | $ (0.02) | $ (0.11) | $ (0.21) | $ (0.43) |
Net loss per share attributable to Class A and Class B common stockholders, diluted (in dollars per share) | $ (0.02) | $ (0.11) | $ (0.21) | $ (0.43) |
As reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Research and development | $ 16,621 | $ 44,836 | ||
Sales and marketing | 76,191 | 207,079 | ||
Total operating expenses | 114,645 | 315,279 | ||
Operating loss | (26,289) | (66,299) | ||
Loss before provision for income taxes | (27,408) | (71,043) | ||
Net loss | $ (29,231) | $ (77,175) | ||
Net loss per share attributable to Class A and Class B common stockholders, basic (in dollars per share) | $ (0.11) | $ (0.44) | ||
Net loss per share attributable to Class A and Class B common stockholders, diluted (in dollars per share) | $ (0.11) | $ (0.44) | ||
Corrections | Accounting Standards Update 2014-09 | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Research and development | $ (30) | $ (119) | ||
Sales and marketing | (1,493) | (2,506) | ||
Total operating expenses | (1,523) | (2,625) | ||
Operating loss | 1,523 | 2,625 | ||
Loss before provision for income taxes | 1,523 | 2,625 | ||
Net loss | $ 1,523 | $ 2,625 | ||
Net loss per share attributable to Class A and Class B common stockholders, basic (in dollars per share) | $ 0 | $ 0.01 | ||
Net loss per share attributable to Class A and Class B common stockholders, diluted (in dollars per share) | $ 0 | $ 0.01 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of the Effect of Corrections (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net loss | $ (27,708) | $ (74,550) | |
Prepaid expenses and other current assets | $ 27,246 | (2,395) | |
Other noncurrent assets | $ (5,782) | (3,151) | |
As reported | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net loss | (29,231) | (77,175) | |
Prepaid expenses and other current assets | (1,104) | ||
Other noncurrent assets | (1,817) | ||
Corrections | Accounting Standards Update 2014-09 | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net loss | $ 1,523 | 2,625 | |
Prepaid expenses and other current assets | (1,291) | ||
Other noncurrent assets | $ (1,334) |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 9 Months Ended | |
Oct. 31, 2022 USD ($) segment | Feb. 01, 2022 USD ($) | |
Accounting Policies [Abstract] | ||
Number of operating segments | segment | 1 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right-of-use assets | $ 13,506 | |
Operating lease liability | $ 14,294 | |
Accounting Standards Update 2016-02 | Cumulative Effect, Period of Adoption, Adjustment | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right-of-use assets | $ 14,000 | |
Operating lease liability | $ 14,000 |
Revenue Recognition - Other Inf
Revenue Recognition - Other Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | Jan. 31, 2022 | |
Capitalized Contract Cost [Line Items] | |||||
Amortization period (in years) | 5 years | 5 years | 3 years | ||
Capitalized costs to obtain customer contracts | $ 88.7 | $ 88.7 | $ 83 | ||
Amortization of costs to obtain customer contracts | 11.3 | $ 9 | 33.5 | $ 25.7 | |
Revenue recognized previously included in deferred revenue balance | 131 | $ 104.4 | 250.6 | $ 194 | |
Contract assets | 3.7 | 3.7 | 3.2 | ||
Prepaid expenses and other current assets | |||||
Capitalized Contract Cost [Line Items] | |||||
Capitalized costs to obtain customer contracts | 40 | 40 | 40.7 | ||
Other noncurrent assets | |||||
Capitalized Contract Cost [Line Items] | |||||
Capitalized costs to obtain customer contracts | $ 48.7 | $ 48.7 | $ 42.3 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligation (Details) $ in Millions | Oct. 31, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 586.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-11-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 420.2 |
Timing of satisfaction of performance obligation | 12 months |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | Oct. 31, 2022 | Jan. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 390,039 | $ 211,182 |
Unrealized Gain | 1 | 1 |
Unrealized Losses | (1,951) | (200) |
Marketable securities | 388,089 | 210,983 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 103,088 | 124,639 |
Unrealized Gain | 0 | 1 |
Unrealized Losses | (490) | (163) |
Marketable securities | 102,598 | 124,477 |
U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 131,327 | 37,725 |
Unrealized Gain | 0 | 0 |
Unrealized Losses | (610) | (35) |
Marketable securities | 130,717 | 37,690 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 110,482 | 48,818 |
Unrealized Gain | 0 | 0 |
Unrealized Losses | (518) | (2) |
Marketable securities | 109,964 | $ 48,816 |
Certificate of deposits | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 45,142 | |
Unrealized Gain | 1 | |
Unrealized Losses | (333) | |
Marketable securities | $ 44,810 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) | 3 Months Ended | 9 Months Ended | |
Apr. 30, 2022 USD ($) | Oct. 31, 2022 USD ($) security | Jan. 31, 2022 USD ($) security | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable securities | $ 388,089,000 | $ 210,983,000 | |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, number of securities | security | 0 | 0 | |
Other-than-temporary impairment loss, debt securities, available-for-sale | $ 0 | $ 0 | |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, number of securities | security | 0 | 0 | |
Other-than-temporary impairment loss, debt securities, available-for-sale | $ 0 | $ 0 | |
Corporate bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable securities | 102,598,000 | $ 124,477,000 | |
U.S. government and agency securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable securities | 130,717,000 | 37,690,000 | |
Commercial paper | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable securities | 109,964,000 | 48,816,000 | |
Certificate of deposits | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable securities | 44,810,000 | ||
Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 459,010,000 | 492,074,000 | |
Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 70,921,000 | 281,091,000 | |
Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 388,089,000 | 210,983,000 | |
Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 0 | 0 | |
Recurring | Corporate bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable securities | 102,598,000 | 124,477,000 | |
Recurring | Corporate bonds | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable securities | 0 | 0 | |
Recurring | Corporate bonds | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable securities | 102,598,000 | 124,477,000 | |
Recurring | Corporate bonds | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable securities | 0 | 0 | |
Recurring | U.S. government and agency securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable securities | 130,717,000 | 37,690,000 | |
Recurring | U.S. government and agency securities | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable securities | 0 | 0 | |
Recurring | U.S. government and agency securities | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable securities | 130,717,000 | 37,690,000 | |
Recurring | U.S. government and agency securities | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable securities | 0 | 0 | |
Recurring | Commercial paper | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable securities | 109,964,000 | 48,816,000 | |
Recurring | Commercial paper | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable securities | 0 | 0 | |
Recurring | Commercial paper | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable securities | 109,964,000 | 48,816,000 | |
Recurring | Commercial paper | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable securities | 0 | 0 | |
Recurring | Certificate of deposits | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable securities | 44,810,000 | 0 | |
Recurring | Certificate of deposits | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable securities | 0 | 0 | |
Recurring | Certificate of deposits | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable securities | 44,810,000 | 0 | |
Recurring | Certificate of deposits | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable securities | 0 | 0 | |
Recurring | Money market funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 70,921,000 | 281,091,000 | |
Recurring | Money market funds | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 70,921,000 | 281,091,000 | |
Recurring | Money market funds | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 0 | 0 | |
Recurring | Money market funds | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | $ 0 | $ 0 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Prepaid Expense and Other Current Assets (Details) - USD ($) $ in Thousands | Oct. 31, 2022 | Jan. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid hosting and data costs | $ 16,923 | $ 46,513 |
Prepaid software costs | 6,304 | 5,765 |
Capitalized commissions costs, current portion | 39,996 | 40,695 |
Prepaid insurance | 2,828 | 2,118 |
Contract assets | 3,723 | 3,161 |
Other | 10,783 | 10,915 |
Prepaid expenses and other current assets | $ 80,557 | $ 109,167 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Oct. 31, 2022 | Jan. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Less accumulated depreciation and amortization | $ (15,162) | $ (12,433) |
Total fixed assets, net | 6,722 | 6,297 |
Capitalized internal-use software | 32,696 | 23,065 |
Less accumulated amortization | (18,739) | (14,657) |
Total capitalized internal-use software | 13,957 | 8,408 |
Property and equipment, net | 20,679 | 14,705 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | 15,787 | 13,544 |
Office furniture and other | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | 1,951 | 1,256 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | $ 4,146 | $ 3,930 |
Balance Sheet Components - Sc_3
Balance Sheet Components - Schedule of Depreciation and Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||
Depreciation and amortization expense | $ 1,634 | $ 1,198 | $ 4,646 | $ 2,994 |
Amortization expense for capitalized internal-use software | 1,591 | 876 | 4,081 | 2,367 |
Capitalized computer software, additions | $ 3,700 | $ 1,900 | $ 9,600 | $ 4,600 |
Balance Sheet Components - Sc_4
Balance Sheet Components - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2022 | Jan. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Bonuses | $ 16,686 | $ 22,622 |
Commissions | 14,886 | 16,496 |
Employee liabilities | 21,548 | 21,668 |
Accrued litigation settlement | 0 | 12,000 |
Purchased media costs | 3,181 | 3,227 |
Accrued sales and use tax liability | 6,324 | 6,935 |
Accrued income taxes | 5,003 | 2,559 |
Professional services | 1,270 | 1,062 |
Other | 19,471 | 13,651 |
Accrued expenses and other current liabilities | 88,369 | 100,220 |
Accrued ESPP employee contributions | $ 3,800 | $ 2,300 |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Oct. 31, 2022 | Oct. 31, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 2,047 | $ 5,777 |
Variable lease cost | 6 | 18 |
Short-term lease cost | 168 | 534 |
Total lease cost | $ 2,221 | $ 6,329 |
Leases - Schedule of Other Info
Leases - Schedule of Other Information (Details) | Oct. 31, 2022 |
Leases [Abstract] | |
Weighted average remaining lease term | 2 years 7 months 6 days |
Weighted average discount rate | 11.70% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) $ in Thousands | Oct. 31, 2022 USD ($) |
Leases [Abstract] | |
Remainder of 2023 | $ 1,716 |
2024 | 7,805 |
2025 | 3,511 |
2026 | 2,429 |
2027 | 1,208 |
Thereafter | 0 |
Total minimum lease payments | 16,669 |
Less: imputed interest | (2,375) |
Total | $ 14,294 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Oct. 31, 2021 | Oct. 31, 2021 | |
Leases [Abstract] | ||
Rent expense | $ 2.2 | $ 5.5 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rental Payments for Operating Leases Under ASC 840 (Details) $ in Thousands | Jan. 31, 2022 USD ($) |
Leases [Abstract] | |
2023 | $ 9,676 |
2024 | 8,036 |
2025 | 3,165 |
2026 | 2,034 |
2027 and thereafter | 1,726 |
Total | $ 24,637 |
Credit Agreement - Additional I
Credit Agreement - Additional Information (Details) - Revolving Credit Facility - Line of Credit - USD ($) | 9 Months Ended | |
Oct. 31, 2022 | Jan. 31, 2022 | |
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 50,000,000 | |
Outstanding borrowings | $ 0 | $ 0 |
Prime Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 0.25% | |
Federal Funds Effective Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 0.50% | |
Interest rate in addition to basis spread (as a percent) | 0.25% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | Oct. 31, 2022 | Jan. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Letters of credit | $ 1.3 | $ 0.7 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - $ / shares shares in Thousands | 9 Months Ended | 12 Months Ended |
Oct. 31, 2022 | Jan. 31, 2022 | |
Number of stock options | ||
Beginning balance (in shares) | 44,355 | |
Exercised (in shares) | (3,429) | |
Cancelled/forfeited (in shares) | (4,881) | |
Expired (in shares) | (12) | |
Ending balance (in shares) | 36,033 | 44,355 |
Exercisable (in shares) | 24,609 | |
Vested and expected to vest (in shares) | 33,439 | |
Weighted average exercise price | ||
Beginning balance (in dollars per share) | $ 6.23 | |
Exercised (in dollars per share) | 4.66 | |
Cancelled/forfeited (in dollars per share) | 8.27 | |
Expired (in dollars per share) | 4.24 | |
Ending balance (in dollars per share) | 6.10 | $ 6.23 |
Exercisable (in dollars per share) | 5.39 | |
Vested and expected to vest (in dollars per share) | $ 5.87 | |
Weighted average remaining contractual life | ||
Balance (in years) | 6 years 10 months 24 days | 7 years 9 months 18 days |
Exercisable (in years) | 6 years 6 months | |
Vested and expected to vest (in years) | 6 years 9 months 18 days |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Details) - Restricted stock units shares in Thousands | 9 Months Ended |
Oct. 31, 2022 $ / shares shares | |
Number of restricted shares | |
Beginning balance (in shares) | shares | 1,730 |
Granted (in shares) | shares | 8,770 |
Released (in shares) | shares | (296) |
Cancelled/forfeited (in shares) | shares | (1,002) |
Ending balance (in shares) | shares | 9,202 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 14.67 |
Granted (in dollars per share) | $ / shares | 12.47 |
Released (in dollars per share) | $ / shares | 14.04 |
Cancelled/forfeited (in dollars per share) | $ / shares | 13.94 |
Ending balance (in dollars per share) | $ / shares | $ 12.69 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense, net of amounts capitalized | $ 11,209 | $ 12,421 | $ 39,920 | $ 37,953 |
Capitalized stock-based compensation | 1,023 | 232 | 1,898 | 465 |
Total stock-based compensation | 12,232 | 12,653 | $ 41,818 | 38,418 |
Period of cost recognition (in years) | 5 years | |||
Equity classified awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | 11,982 | 12,403 | $ 41,068 | 37,668 |
Other awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | 250 | 250 | 750 | 750 |
Cost of Sales | Subscription | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense, net of amounts capitalized | 282 | 589 | 1,079 | 1,411 |
Cost of Sales | Professional services | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense, net of amounts capitalized | 368 | 889 | 1,770 | 1,911 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense, net of amounts capitalized | 2,204 | 2,186 | 7,700 | 4,915 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense, net of amounts capitalized | 5,071 | 4,997 | 18,736 | 13,963 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense, net of amounts capitalized | $ 3,284 | $ 3,760 | $ 10,635 | $ 15,753 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - ESPP $ in Millions | 3 Months Ended |
Jul. 31, 2022 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based compensation arrangement by share-based payment award, offering period | 12 months |
Share-Based Payment Arrangement, Plan Modification, Incremental Cost | $ 3.7 |
Stock-Based Compensation - Cost
Stock-Based Compensation - Costs Not Yet Recognized (Details) $ in Thousands | 9 Months Ended |
Oct. 31, 2022 USD ($) | |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized expense | $ 24,174 |
Weighted average expense recognition period | 2 years 2 months 12 days |
Performance share units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized expense | $ 1,526 |
Weighted average expense recognition period | 2 years 3 months 18 days |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized expense | $ 54,660 |
Weighted average expense recognition period | 3 years 4 months 24 days |
ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized expense | $ 2,417 |
Weighted average expense recognition period | 8 months 12 days |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Numerator: | ||||
Net loss attributable to Class A and Class B common stockholders, basic | $ (5,860) | $ (27,708) | $ (55,075) | $ (74,550) |
Denominator: | ||||
Weighted-average shares outstanding used in computing net loss per share attributable to Class A and Class B common stockholders - basic (in shares) | 260,285 | 255,195 | 258,677 | 174,497 |
Weighted-average shares outstanding used in computing net loss per share attributable to Class A and Class B common stockholders - diluted (in shares) | 260,285 | 255,195 | 258,677 | 174,497 |
Net loss per common share attributable to Class A and Class B common stockholders - basic (in dollars per share) | $ (0.02) | $ (0.11) | $ (0.21) | $ (0.43) |
Net loss per common share attributable to Class A and Class B common stockholders - diluted (in dollars per share) | $ (0.02) | $ (0.11) | $ (0.21) | $ (0.43) |
Net Loss Per Share - Potentiall
Net Loss Per Share - Potentially Dilutive Securities Excluded from Diluted Per Share Calculations (Details) - shares shares in Thousands | 9 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from net loss per share (in shares) | 50,439 | 52,500 |
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) | 36,033 | 45,767 |
Performance share units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from net loss per share (in shares) | 2,295 | 3,175 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from net loss per share (in shares) | 9,202 | 765 |
ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from net loss per share (in shares) | 409 | 293 |
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 | 2,500 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 2,350 | $ 1,823 | $ 6,973 | $ 6,132 |
Unrecognized tax benefits, reserve | $ 100 | $ 300 |
Geographic Information - Revenu
Geographic Information - Revenue and Long-lived Assets (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | Oct. 31, 2022 USD ($) segment | Oct. 31, 2021 USD ($) | Jan. 31, 2022 USD ($) | |
Segment Reporting [Abstract] | |||||
Number of operating segments | segment | 1 | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | $ 157,251 | $ 127,056 | $ 452,859 | $ 356,728 | |
Long-lived assets | 20,679 | 20,679 | $ 14,705 | ||
Americas | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | 104,932 | 80,333 | 295,288 | 226,573 | |
Long-lived assets | 15,975 | 15,975 | 10,472 | ||
EMEA | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | 43,647 | 35,406 | 127,099 | 99,838 | |
Long-lived assets | 943 | 943 | 1,551 | ||
Other | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | 8,672 | 11,317 | 30,472 | 30,317 | |
Long-lived assets | 3,761 | 3,761 | 2,682 | ||
US | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | 99,844 | $ 75,351 | 278,352 | $ 212,253 | |
Long-lived assets | $ 15,800 | $ 15,800 | $ 10,200 | ||
US | Minimum | Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Concentration risk | 10% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Board of Directors Chairman | ||||
Related Party Transaction [Line Items] | ||||
Paid to related party | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.1 |