Cover
Cover - shares | 3 Months Ended | |
Apr. 30, 2021 | May 21, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-38865 | |
Entity Registrant Name | Zoom Video Communications, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 61-1648780 | |
Entity Address, Address Line One | 55 Almaden Boulevard, 6th Floor | |
Entity Address, City or Town | San Jose | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95113 | |
City Area Code | 888 | |
Local Phone Number | 799-9666 | |
Title of 12(b) Security | Class A Common Stock, $0.001 par value per share | |
Trading Symbol | ZM | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001585521 | |
Current Fiscal Year End Date | --01-31 | |
Class A Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 236,782,193 | |
Class B Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 57,863,584 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 30, 2021 | Jan. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,557,270 | $ 2,240,303 |
Marketable securities | 3,132,309 | 2,004,410 |
Accounts receivable, net of allowances of $33,664 and $36,844 as of April 30, 2021 and January 31, 2021, respectively | 366,346 | 294,703 |
Deferred contract acquisition costs, current | 148,645 | 136,630 |
Prepaid expenses and other current assets | 136,326 | 116,819 |
Total current assets | 5,340,896 | 4,792,865 |
Deferred contract acquisition costs, noncurrent | 155,295 | 157,262 |
Property and equipment, net | 192,410 | 149,924 |
Operating lease right-of-use assets | 93,780 | 97,649 |
Goodwill | 24,340 | 24,340 |
Other assets, noncurrent | 81,890 | 75,953 |
Total assets | 5,888,611 | 5,297,993 |
Current liabilities: | ||
Accounts payable | 8,324 | 8,664 |
Accrued expenses and other current liabilities | 450,678 | 393,018 |
Deferred revenue, current | 1,069,334 | 858,284 |
Total current liabilities | 1,528,336 | 1,259,966 |
Deferred revenue, noncurrent | 25,089 | 25,211 |
Operating lease liabilities, noncurrent | 86,433 | 90,415 |
Other liabilities, noncurrent | 56,020 | 61,634 |
Total liabilities | 1,695,878 | 1,437,226 |
Commitments and contingencies (Note 7) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value per share, 200,000,000 shares authorized as of April 30, 2021 and January 31, 2021; zero shares issued and outstanding as of April 30, 2021 and January 31, 2021 | 0 | 0 |
Common stock, $0.001 par value per share, 2,000,000,000 Class A shares authorized as of April 30, 2021 and January 31, 2021; 236,487,446 and 215,737,924 shares issued and outstanding as of April 30, 2021 and January 31, 2021, respectively; 300,000,000 Class B shares authorized as of April 30, 2021 and January 31, 2021; 58,024,499 and 77,811,299 shares issued and outstanding as of April 30, 2021 and January 31, 2021, respectively | 293 | 292 |
Additional paid-in capital | 3,292,241 | 3,187,168 |
Accumulated other comprehensive income | 200 | 839 |
Retained earnings | 899,999 | 672,468 |
Total stockholders’ equity | 4,192,733 | 3,860,767 |
Total liabilities and stockholders’ equity | $ 5,888,611 | $ 5,297,993 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Apr. 30, 2021 | Jan. 31, 2021 |
Accounts receivable, allowances | $ 33,664 | $ 36,844 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Class A Common Stock | ||
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 236,487,446 | 215,737,924 |
Common stock, shares outstanding (in shares) | 236,487,446 | 215,737,924 |
Class B Common Stock | ||
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 58,024,499 | 77,811,299 |
Common stock, shares outstanding (in shares) | 58,024,499 | 77,811,299 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Income Statement [Abstract] | ||
Revenue | $ 956,237 | $ 328,167 |
Cost of revenue | 264,994 | 103,707 |
Gross profit | 691,243 | 224,460 |
Operating expenses: | ||
Research and development | 65,175 | 26,389 |
Sales and marketing | 245,667 | 121,556 |
General and administrative | 154,089 | 53,130 |
Total operating expenses | 464,931 | 201,075 |
Income from operations | 226,312 | 23,385 |
Interest income and other, net | 2,619 | 5,790 |
Income before provision for income taxes | 228,931 | 29,175 |
Provision for income taxes | 1,400 | 2,100 |
Net income | 227,531 | 27,075 |
Undistributed earnings attributable to participating securities | (148) | (39) |
Net income attributable to common stockholders | $ 227,383 | $ 27,036 |
Net income per share attributable to common stockholders: | ||
Basic (in dollars per share) | $ 0.77 | $ 0.10 |
Diluted (in dollars per share) | $ 0.74 | $ 0.09 |
Weighted-average shares used in computing net income per share attributable to common stockholders: | ||
Basic (in shares) | 293,794,778 | 279,891,111 |
Diluted (in shares) | 305,412,419 | 295,184,958 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 227,531 | $ 27,075 |
Other comprehensive (loss) income: | ||
Unrealized (loss) gain on available-for-sale marketable securities, net of tax | (639) | 1,078 |
Comprehensive income | $ 226,892 | $ 28,153 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Retained Earnings |
Beginning balance (in shares) at Jan. 31, 2020 | 278,731,143 | ||||
Beginning balance at Jan. 31, 2020 | $ 833,943 | $ 277 | $ 832,705 | $ 809 | $ 152 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options (in shares) | 3,232,991 | ||||
Issuance of common stock upon exercise of stock options | 9,725 | $ 3 | 9,722 | ||
Issuance of common stock upon release of restricted stock units (in shares) | 27,877 | ||||
Charitable donation of common stock | 1,000 | 1,000 | |||
Stock-based compensation expense | 28,810 | 28,810 | |||
Other comprehensive income (loss) | 1,078 | 1,078 | |||
Net income | 27,075 | 27,075 | |||
Ending balance (in shares) at Apr. 30, 2020 | 281,992,011 | ||||
Ending balance at Apr. 30, 2020 | 901,631 | $ 280 | 872,237 | 1,887 | 27,227 |
Beginning balance (in shares) at Jan. 31, 2021 | 293,549,223 | ||||
Beginning balance at Jan. 31, 2021 | $ 3,860,767 | $ 292 | 3,187,168 | 839 | 672,468 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options (in shares) | 751,686 | 751,686 | |||
Issuance of common stock upon exercise of stock options | $ 3,476 | $ 1 | 3,475 | ||
Issuance of common stock upon release of restricted stock units (in shares) | 211,036 | ||||
Stock-based compensation expense | 101,598 | 101,598 | |||
Other comprehensive income (loss) | (639) | (639) | |||
Net income | 227,531 | 227,531 | |||
Ending balance (in shares) at Apr. 30, 2021 | 294,511,945 | ||||
Ending balance at Apr. 30, 2021 | $ 4,192,733 | $ 293 | $ 3,292,241 | $ 200 | $ 899,999 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 227,531 | $ 27,075 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation expense | 98,969 | 28,777 |
Amortization of deferred contract acquisition costs | 37,766 | 16,287 |
Depreciation and amortization | 10,663 | 5,339 |
Provision for accounts receivable allowances | 4,055 | 3,868 |
Non-cash operating lease cost | 4,274 | 2,248 |
Charitable donation of common stock | 0 | 1,000 |
Other | 5,866 | (1,421) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (75,665) | (142,501) |
Prepaid expenses and other assets | (29,975) | (49,080) |
Deferred contract acquisition costs | (47,813) | (124,854) |
Accounts payable | 1,592 | 1,756 |
Accrued expenses and other liabilities | 88,656 | 167,322 |
Deferred revenue | 210,896 | 322,862 |
Operating lease liabilities, net | (3,513) | 287 |
Net cash provided by operating activities | 533,302 | 258,965 |
Cash flows from investing activities: | ||
Purchases of marketable securities | (1,425,451) | (207,546) |
Maturities of marketable securities | 291,047 | 137,014 |
Sales of marketable securities | 0 | 26,613 |
Purchases of property and equipment | (79,074) | (7,272) |
Purchase of equity investment | 0 | (8,000) |
Purchase of convertible promissory note | (6,500) | (5,000) |
Purchase of intangible assets | 0 | (162) |
Other | 0 | 1,319 |
Net cash used in investing activities | (1,219,978) | (63,034) |
Cash flows from financing activities: | ||
Proceeds from employee equity transactions (remitted) to be remitted to employees and tax authorities, net | (9,984) | 218,540 |
Proceeds from exercise of stock options | 3,368 | 9,586 |
Other | 337 | 0 |
Net cash (used in) provided by financing activities | (6,279) | 228,126 |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (692,955) | 424,057 |
Cash, cash equivalents, and restricted cash – beginning of period | 2,293,116 | 334,082 |
Cash, cash equivalents, and restricted cash – end of period | 1,600,161 | 758,139 |
Reconciliation of cash, cash equivalents, and restricted cash within the condensed consolidated balance sheets to the amounts shown in the condensed consolidated statements of cash flows above: | ||
Cash and cash equivalents | 1,557,270 | 488,653 |
Total cash, cash equivalents, and restricted cash | $ 1,600,161 | $ 758,139 |
Summary of Business and Signifi
Summary of Business and Significant Accounting Policies | 3 Months Ended |
Apr. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Business and Significant Accounting Policies | Summary of Business and Significant Accounting Policies Description of Business Zoom Video Communications, Inc. and its subsidiaries (collectively, “Zoom,” the “Company,” “we,” “us,” or “our”) provide a video-first unified communications platform that delivers happiness and fundamentally changes how people interact. We connect people through frictionless and secure video, phone, chat, and content sharing and enable face-to-face video experiences for thousands of people in a single meeting across disparate devices and locations. We were incorporated in the state of Delaware in April 2011, and are headquartered in San Jose, California. Fiscal Year Our fiscal year ends on January 31. References to fiscal year 2022, for example, refer to the fiscal year ending January 31, 2022. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and applicable regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting, and include the accounts of Zoom Video Communications, Inc., its subsidiaries, and a variable interest entity for which we are the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated balance sheet as of January 31, 2021 included herein was derived from the audited financial statements as of that date, but does not include all disclosures, including certain notes required by GAAP on an annual reporting basis. The unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the balance sheets, statements of operations, statements of comprehensive income, statements of stockholders’ equity, and statements of cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year or any future period. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended January 31, 2021, filed with the SEC on March 18, 2021. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Significant items subject to such estimates and assumptions include, but are not limited to, the estimated expected benefit period for deferred contract acquisition costs, the useful lives of long-lived assets, the incremental borrowing rate for operating leases, stock-based compensation expense, sales and other tax liabilities, the fair value of marketable securities, acquired intangible assets and goodwill, the valuation of deferred income tax assets and uncertain tax positions, and accruals and contingencies. Actual results could differ from those estimates. The COVID-19 pandemic has created, and may continue to create, significant uncertainty in macroeconomic conditions, and the extent of its impact on our operational and financial performance will depend on certain developments, including the duration and spread of the outbreak and the impact on our customers and our sales cycles. During the three months ended April 30, 2021 and 2020, our estimates and assumptions required increased judgment and carried a higher degree of variability and volatility. As events continue to evolve and additional information becomes available, our estimates may change materially in future periods. Summary of Significant Accounting Policies Our significant accounting policies are discussed in Note 1. “Summary of Business and Significant Accounting Policies” in the notes to consolidated financial statements included in our Annual Report on Form 10-K for the year ended January 31, 2021, filed with the SEC on March 18, 2021. There have been no significant changes to these policies during the three months ended April 30, 2021. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Apr. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregation of Revenue The following table summarizes revenue by region based on the billing address of customers: Three Months Ended April 30, 2021 2020 Amount Percentage of Amount Percentage of (in thousands, except percentages) Americas $ 635,784 66 % $ 245,633 75 % Asia Pacific (“APAC”) 123,763 13 31,278 9 Europe, Middle East, and Africa (“EMEA”) 196,690 21 51,256 16 Total $ 956,237 100 % $ 328,167 100 % Contract Balances We receive payments from customers based on a billing schedule as established in our customer contracts. Accounts receivable are recorded when we contractually have the right to consideration. In some arrangements, a right to consideration for our performance under the customer contract may occur before invoicing to the customer, resulting in an unbilled accounts receivable. The amount of unbilled accounts receivable included within accounts receivable, net of allowances in the condensed consolidated balance sheets was $28.8 million and $24.6 million as of April 30, 2021 and January 31, 2021, respectively. Contract liabilities consist of deferred revenue. Revenue is deferred when we have the right to invoice in advance of performance under a customer contract. The current portion of deferred revenue balances is recognized over the next 12 months. The amount of revenue recognized during the three months ended April 30, 2021 and 2020 that was included in deferred revenue at the beginning of each period was $419.1 million and $98.0 million, respectively. Remaining Performance Obligations The terms of our subscription agreements are monthly, annual, and multiyear, and we may bill for the full term in advance or on an annual, quarterly, or monthly basis, depending on the billing terms with customers. As of April 30, 2021, the aggregate amount of the transaction price allocated to our remaining performance obligations was $2,073.4 million, which consisted of both billed consideration in the amount of $1,094.4 million and unbilled consideration in the amount of $979.0 million that we expect to recognize as revenue. We expect to recognize 72% of our remaining performance obligations as revenue over the next 12 months and the remainder thereafter. |
Marketable Securities
Marketable Securities | 3 Months Ended |
Apr. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Marketable Securities As of April 30, 2021 and January 31, 2021, our marketable securities consisted of the following: As of April 30, 2021 Amortized Gross Gross Estimated (in thousands) Commercial paper $ 57,707 $ — $ — $ 57,707 Agency bonds 515,261 44 (148) 515,157 Corporate and other debt securities 469,972 563 (107) 470,428 U.S. government agency securities 1,876,688 124 (292) 1,876,520 Treasury bills 212,484 13 — 212,497 Marketable securities $ 3,132,112 $ 744 $ (547) $ 3,132,309 As of January 31, 2021 Amortized Gross Gross Estimated (in thousands) Commercial paper $ 26,222 $ — $ — $ 26,222 Agency bonds 461,335 79 (49) 461,365 Corporate and other debt securities 465,207 1,113 (64) 466,256 U.S. government agency securities 834,894 28 (257) 834,665 Treasury bills 215,902 6 (6) 215,902 Marketable securities $ 2,003,560 $ 1,226 $ (376) $ 2,004,410 We review the individual securities that have unrealized losses on a regular basis to evaluate whether or not any security has experienced, or is expected to experience, credit losses resulting in the decline in fair value. We evaluate, among other factors, whether we have the intention to sell any of these marketable securities and whether it is more likely than not that we will be required to sell any of them before recovery of the amortized cost basis. We have not recorded an allowance for credit losses, as we believe any such losses would be immaterial based on the high-grade credit rating for each of our marketable securities as of the end of each period. There were no material realized gains or losses from available-for-sale securities that were reclassified out of accumulated other comprehensive income for the three months ended April 30, 2021 and 2020. The following table presents the contractual maturities of our marketable securities as of April 30, 2021 and January 31, 2021: As of April 30, 2021 January 31, 2021 (in thousands) Less than one year $ 1,597,693 $ 1,017,048 Due in one to five years 1,534,616 987,362 Total $ 3,132,309 $ 2,004,410 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables present information about our financial instruments that are measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value: As of April 30, 2021 Fair Value Level 1 Level 2 Level 3 (in thousands) Financial Assets: Money market funds $ 631,128 $ 631,128 $ — $ — Treasury bills 172,565 — 172,565 — Cash equivalents 803,693 631,128 172,565 — Commercial paper 57,707 — 57,707 — Agency bonds 515,157 — 515,157 — Corporate and other debt securities 470,428 — 470,428 — U.S. government agency securities 1,876,520 — 1,876,520 — Treasury bills 212,497 — 212,497 — Marketable securities 3,132,309 — 3,132,309 — Certificate of deposit included in prepaid expenses and other current assets 100 — 100 — Certificates of deposit included in other assets, noncurrent 2,243 — 2,243 — Convertible notes included in other assets, noncurrent 11,682 — — 11,682 Total financial assets $ 3,950,027 $ 631,128 $ 3,307,217 $ 11,682 As of January 31, 2021 Fair Value Level 1 Level 2 Level 3 (in thousands) Financial Assets: Money market funds $ 958,357 $ 958,357 $ — $ — Treasury bills 618,498 — 618,498 — Cash equivalents 1,576,855 958,357 618,498 — Commercial paper 26,222 — 26,222 — Agency bonds 461,365 — 461,365 — Corporate and other debt securities 466,256 — 466,256 — U.S. government agency securities 834,665 — 834,665 — Treasury bills 215,902 — 215,902 — Marketable securities 2,004,410 — 2,004,410 — Certificate of deposit included in prepaid expenses and other current assets 100 — 100 — Certificates of deposit included in other assets, noncurrent 2,238 — 2,238 — Convertible note included in other assets, noncurrent 5,130 — — 5,130 Total financial assets $ 3,588,733 $ 958,357 $ 2,625,246 $ 5,130 We classify our 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. We classify our commercial paper, agency bonds, corporate and other debt securities, U.S. government agency securities, treasury bills, and certificates of deposit 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. We classify the convertible notes as Level 3 due to the lack of relevant observable market data over fair value inputs, such as the probability weighting of the various scenarios that can impact settlement of the arrangement. |
Business Combinations
Business Combinations | 3 Months Ended |
Apr. 30, 2021 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations On May 7, 2020, we acquired 100% of the issued and outstanding share capital of Keybase, Inc. (“Keybase”), a secure messaging and file-sharing company, for purchase consideration of $42.9 million in cash. The acquisition helps us strengthen the security of our video communications platform by providing end-to-end encryption (“E2EE”) expertise. The acquisition has been accounted for as a business combination. In allocating the purchase consideration, $24.3 million was attributed to goodwill, $3.3 million to intangible assets, and $15.3 million to other net assets acquired primarily consisting of cash and cash equivalents of $16.4 million. The goodwill amount represents synergies related to our existing products expected to be realized from the acquisition and assembled workforce. The associated goodwill is not deductible for tax purposes. Acquired intangible assets consisted of developed technology with an estimated useful life of five years. The developed technology had a remaining useful life of 4.0 years as of April 30, 2021, and is amortized using the straight-line method over its estimated useful life. Not included in the purchase consideration, we also entered into holdback agreements with certain employees for $20.0 million in cash payments, which are subject to such employees’ continued service with us. The holdback amount of $20.0 million will be treated as compensation for research and development over the required service period ranging from one year to three years. Transaction costs incurred in connection with the acquisition were immaterial. The results of operations of Keybase have been included in our condensed consolidated financial statements from the date of the acquisition. Pro forma and historical results of operations of Keybase have not been presented, as the results do not have a material effect on any of the periods presented in our condensed consolidated statements of operations. |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Apr. 30, 2021 | |
Balance Sheet Components [Abstract] | |
Balance Sheet Components | Balance Sheet Components Accounts Receivable, Net Accounts receivable are recorded for invoiced amounts and amounts for which revenue has been recognized, but not invoiced, net of allowances. Our short-term accounts receivable consist of the following: As of April 30, 2021 January 31, 2021 (in thousands) Accounts receivable, gross $ 400,010 $ 331,547 Less: Allowance for credit losses (18,000) (20,500) Less: Allowance for returns (15,664) (16,344) Accounts receivable, net $ 366,346 $ 294,703 Below is a rollforward of our allowance for credit losses for the three months ended April 30, 2021 and 2020: 2021 2020 (in thousands) Balance as of January 31 $ 20,500 $ 5,150 Provision for credit losses 1,028 3,771 Write-offs (3,528) (621) Balance as of April 30 $ 18,000 $ 8,300 Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: As of April 30, 2021 January 31, 2021 (in thousands) Prepaid expenses $ 73,992 $ 60,702 Restricted cash from international employee stock sales 40,548 50,475 Other receivables 19,265 4,107 Other 2,521 1,535 Prepaid expenses and other current assets $ 136,326 $ 116,819 Property and Equipment, Net Property and equipment consisted of the following: As of April 30, 2021 January 31, 2021 (in thousands) Computer and office equipment $ 178,923 $ 137,445 Software 42,493 36,216 Leasehold improvements 24,223 23,593 Furniture and fixtures 4,562 4,625 Property and equipment, gross 250,201 201,879 Less: accumulated depreciation and amortization (57,791) (51,955) Property and equipment, net $ 192,410 $ 149,924 Depreciation and amortization expense was $10.5 million and $5.3 million for the three months ended April 30, 2021 and 2020, respectively. Other Assets, Noncurrent Other assets, noncurrent consisted of the following: As of April 30, 2021 January 31, 2021 (in thousands) Accounts receivable, noncurrent $ 26,981 $ 28,008 Equity investment 13,538 13,538 Prepaid expenses, noncurrent 12,568 12,386 Convertible notes 11,682 5,130 Indefinite-lived intangible assets 8,002 8,002 Intangible assets subject to amortization, net 2,653 2,814 Other 6,466 6,075 Other assets, noncurrent $ 81,890 $ 75,953 Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: As of April 30, 2021 January 31, 2021 (in thousands) Accrued expenses $ 215,466 $ 157,167 Accrued compensation and benefits 117,348 118,640 Proceeds from employee equity transactions to be remitted to employees and tax authorities 44,190 54,174 Sales and other tax liabilities 37,321 27,453 Operating lease liabilities, current 16,476 15,601 Customer deposit liabilities 13,046 13,050 Other 6,831 6,933 Accrued expenses and other current liabilities $ 450,678 $ 393,018 Other Liabilities, Noncurrent Other liabilities, noncurrent consisted of the following: As of April 30, 2021 January 31, 2021 (in thousands) Sales and other tax liabilities $ 52,457 $ 58,133 Other 3,563 3,501 Other liabilities, noncurrent $ 56,020 $ 61,634 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Non-cancelable Purchase Obligations During the three months ended April 30, 2021, there have been no material changes to our non-cancelable purchase obligations from those disclosed in Note 8. “Commitments and Contingencies” in the notes to consolidated financial statements included in our Annual Report on Form 10-K for the year ended January 31, 2021, filed with the SEC on March 18, 2021. Other Contingencies In June 2020, we received a grand jury subpoena from the Department of Justice’s U.S. Attorney’s Office for the Eastern District of New York (“EDNY”), which requested information regarding our interactions with foreign governments and foreign political parties, including the Chinese government, as well as information regarding storage of and access to user data, the development and implementation of Zoom’s privacy policies, and the actions we took relating to the Tiananmen commemorations on Zoom. In July 2020, we received subpoenas from the Department of Justice’s U.S. Attorney’s Office for the Northern District of California (“NDCA”) and the SEC. Both subpoenas seek documents and information relating to various security, data protection and privacy matters, including our encryption, and our statements relating thereto, as well as calculation of usage metrics and related public statements. In addition, the NDCA subpoena seeks information relating to any contacts between our employees and representatives of the Chinese government, and any attempted or successful influence by any foreign government in our policies, procedures, practices, and actions as they relate to users in the United States. We have since received additional subpoenas from EDNY and NDCA seeking related information. We are fully cooperating with these investigations and have been conducting our own thorough internal investigation. These investigations are ongoing, and we do not know when they will be completed, which facts we will ultimately discover as a result of the investigations, or what actions the government may or may not take. We cannot predict the outcome of these investigations, and a negative outcome in any or all of these matters could cause us to incur material fines, penalties, or other financial exposure. Legal Proceedings On April 7, 2020 and April 8, 2020, securities class action complaints were filed against us and two of our officers in the United States District Court for the NDCA. The plaintiffs are purported stockholders of the Company. The complaints allege, among other things, that we violated Sections 10(b) and 20(a) of the Exchange Act, and Rule 10b-5 by making false and misleading statements and omissions of material fact about our data privacy and security measures. The complaints seek unspecified damages, interest, fees, and costs. On May 18, 2020, the actions were consolidated. On November 4, 2020, the court appointed a lead plaintiff. On December 23, 2020, the lead plaintiff filed a consolidated complaint. We filed a motion to dismiss the consolidated complaint on May 20, 2021. Plaintiff’s opposition to our motion to dismiss is due on July 9, 2021 and our reply in support of the motion to dismiss is due August 9, 2021. A hearing on the motion to dismiss is scheduled for August 26, 2021. On June 11, 2020 and July 30, 2020, purported shareholder derivative complaints were filed in the United States District Court for the District of Delaware. The first complaint names as defendants nine of our officers and directors, and the second complaint names eight of our officers and directors. The lawsuits assert state and federal claims and are based on the same alleged misstatements as the shareholder class action complaint. The lawsuits accuse our board of directors of failing to exercise reasonable and prudent supervision over our management, policies, practices, and internal controls. The plaintiffs seek unspecified monetary damages on behalf of us as well as governance reforms. On September 25, 2020, the derivative cases were consolidated. The consolidated case is stayed pending resolution of a forthcoming motion to dismiss the securities class action. We believe these lawsuits are without merit, and we are vigorously defending ourselves against them. Given the uncertainty of litigation, the preliminary stage of the cases, and the legal standards that must be met for, among other things, class certification and success on the merits, we cannot estimate the reasonably possible loss or range of loss that may result from these actions. Beginning on March 30, 2020, multiple putative class actions have been filed against us in various U.S. federal district courts and state courts relating to our alleged privacy and security practices, including alleged data sharing with third parties (the “U.S. Privacy Class Actions”). We have also been sued under the DC private attorney general statute on behalf of members of the general public. The plaintiffs claim violations of a variety of state consumer protection and privacy laws, and also assert state constitutional and common law claims, such as negligence and unjust enrichment. The U.S. Privacy Class Actions seek to certify both nationwide and state-specific classes of individuals using our services in certain time periods. The plaintiffs seek various forms of injunctive and monetary relief, including restitution, statutory and actual damages, punitive damages, and attorneys’ fees. The federal cases have been transferred to and consolidated in the NDCA with our consent; lead plaintiffs’ counsel have been appointed; and plaintiffs filed their first amended consolidated class action complaint on October 28, 2020. On March 11, 2021, the Court granted in part, and denied in part, our motion to dismiss, and gave Plaintiffs leave to amend. On April 7, 2021, the parties reported to the court that they had reached agreement on certain material terms of a settlement, and that they intended to complete negotiations, finalize the details of a settlement, formally memorialize the settlement, and present the settlement to the Court for approval as expeditiously as possible. Plaintiffs filed a second amended complaint on May 12, 2021. Pending finalization of the settlement, Plaintiffs’ motion for class certification is due June 25, 2021. Accordingly, we recorded an aggregate legal settlement charge of $66.9 million net of amounts estimated to be covered by insurance as a general and administrative expense in our condensed consolidated statement of operations for the three months ended April 30, 2021. In September 2019, the Federal Trade Commission (“FTC”) issued a Civil Investigative Demand to us requiring us to produce certain documents and materials and to answer certain interrogatories relating to our privacy and security representations and practices. Since then, we have fully cooperated with the investigation. In October 2020, we reached a proposed settlement agreement with the FTC staff to resolve the FTC’s allegations that certain of our statements and practices about our security constituted deceptive and unfair acts or practices in violation of the FTC Act. On November 10, 2020, the FTC Commissioners voted to approve the settlement and, on November 13, 2020, the FTC published the settlement in the Federal Register for a 30-day public comment period, which ended on December 13, 2020. On January 19, 2021, the FTC voted to finalize the settlement. Under the terms of the settlement, we neither admit nor deny the FTC’s allegations, and the FTC does not impose any fine or penalty upon us. We are required to implement certain injunctive provisions, including, among other things, refraining from making any misrepresentations regarding the privacy and security of our services or how we collect, maintain, use, delete, disclose, allow access to, and protect user information. It also requires us to implement a detailed information security program and obtain third-party security assessments periodically. We do not expect the settlement to have a material impact on our financial results. We will cooperate with the FTC’s requirements and work to ensure compliance. Any failure to comply with the settlement may increase the possibility of additional adverse consequences, including litigation, additional regulatory actions, injunctions, or monetary penalties, or require further changes to our business practices, significant management time, or the diversion of significant operational resources, all of which could result in a material loss or otherwise harm our business. |
Stockholders_ Equity and Equity
Stockholders’ Equity and Equity Incentive Plans | 3 Months Ended |
Apr. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Stockholders’ Equity and Equity Incentive Plans | Stockholders’ Equity and Equity Incentive Plans Common Stock In connection with our initial public offering (“IPO”) in April 2019, our amended and restated certificate of incorporation became effective, which authorized the issuance of 2,000,000,000 shares of Class A common stock, $0.001 par value per share, and 300,000,000 shares of Class B common stock, $0.001 par value per share. Class A and Class B common stock are referred to as common stock throughout the notes to the condensed consolidated financial statements, unless otherwise noted. Equity Incentive Plans We have two equity incentive plans: the 2011 Global Share Plan (“2011 Plan”) and the 2019 Equity Incentive Plan (“2019 Plan”). All shares that remain available for future grants are under the 2019 Plan. Stock Options A summary of stock option activity under our equity incentive plan and related information is as follows: Stock Options Outstanding Weighted- Weighted- Aggregate (in thousands, except share, life, and per share data) Balance as of January 31, 2021 9,239,504 $ 7.17 7.0 $ 3,371,457 Granted — $ — Exercised (751,686) $ 4.48 Canceled/forfeited/expired (66,838) $ 5.05 Balance as of April 30, 2021 8,420,980 $ 7.43 6.8 $ 2,628,512 Vested and exercisable as of April 30, 2021 4,853,741 $ 4.39 6.4 $ 1,529,787 As of April 30, 2021, unrecognized stock-based compensation expense related to outstanding unvested stock options was $39.6 million, which is expected to be recognized over a weighted-average period of 1.3 years. Restricted Stock Units A summary of RSU activity under our equity incentive plan and related information is as follows: RSUs Unvested Weighted- Unvested as of January 31, 2021 4,510,730 $ 194.57 Granted 361,404 $ 334.88 Vested (211,036) $ 103.91 Canceled/forfeited (40,793) $ 260.68 Unvested as of April 30, 2021 4,620,305 $ 209.10 As of April 30, 2021, unrecognized stock-based compensation expense related to outstanding unvested RSUs was $772.9 million, which is expected to be recognized over a weighted-average period of 2.5 years. 2019 Employee Stock Purchase Plan In April 2019, we adopted the 2019 Employee Stock Purchase Plan (“ESPP”). As of April 30, 2021, unrecognized stock-based compensation expense related to the ESPP was $10.2 million, which is expected to be recognized over a weighted-average period of 0.1 years. Stock-Based Compensation The stock-based compensation expense by line item in the accompanying condensed consolidated statements of operations is summarized as follows: Three Months Ended April 30, 2021 2020 (in thousands) Cost of revenue $ 14,066 $ 3,249 Research and development 20,819 5,224 Sales and marketing 51,812 17,123 General and administrative 12,272 3,181 Total stock-based compensation expense $ 98,969 $ 28,777 |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our tax provision for interim periods is determined using an estimated annual effective tax rate, adjusted for discrete items arising in the applicable quarter. In each quarter, we update the estimated annual effective tax rate and make a year-to-date adjustment to the provision. The estimated annual effective tax rate is subject to significant volatility due to several factors, including our ability to accurately predict the proportion of our pretax income in multiple jurisdictions and certain book-tax differences. The following table provides details of the provision for income taxes: Three Months Ended April 30, 2021 2020 (in thousands, except percentages) Income before provision for income taxes $ 228,931 $ 29,175 Provision for income taxes 1,400 2,100 Effective tax rate 0.6 % 7.2 % The provision for income taxes was $1.4 million and $2.1 million for the three months ended April 30, 2021 and 2020, respectively. The provision for income taxes for the three months ended April 30, 2021 consisted primarily of federal, state, and foreign income taxes. For the three months ended April 30, 2021 and 2020, the provision for income taxes differed from the U.S. federal statutory rate primarily due to stock-based compensation and the valuation allowance on the U.S. and the U.K. deferred tax assets. The realization of tax benefits of net deferred tax assets is dependent upon future levels of taxable income, of an appropriate character, in the periods the items are expected to be deductible or taxable. Based on the available objective evidence during the three months ended April 30, 2021, we believe it is more likely than not that the tax benefits of the U.S. and the U.K. losses incurred may not be realized. Accordingly, we recorded a full valuation allowance against the tax benefits of the U.S. and the U.K. losses incurred. We intend to maintain the full valuation allowance on the U.S. and the U.K. net deferred tax assets until sufficient positive evidence exists to support a reversal of, or decrease in, the valuation allowance. In our valuation allowance evaluation, we give more weight to evidence that can be objectively verified than to evidence that cannot be objectively verified. Our consideration of the evidence requires management to make a number of significant judgements, estimates, and assumptions about highly complex and inherently uncertain matters. Given our current earnings and anticipated future earnings, we believe that there is a reasonable possibility that in the foreseeable future, sufficient positive evidence may become available that results in a conclusion that a portion of the valuation allowance will no longer be needed. Release of the valuation allowance would result in the recognition of certain deferred tax assets and a decrease to income tax expense for the period the release is recorded. However, the exact timing and amount of the valuation allowance release are subject to change on the basis of the level of profitability (pretax income adjusted for permanent differences) that we are able to actually achieve. During the three months ended April 30, 2021, there were no material changes to the total amount of unrecognized tax benefits and we do not expect any significant changes in the next 12 months. On March 11, 2021, the American Rescue Plan Act of 2021 (“American Rescue Plan Act”) was passed and amended portions of relevant tax laws. The American Rescue Plan Act did not have a significant impact on the provision for income taxes for the three months ended April 30, 2021. |
Net Income Per Share Attributab
Net Income Per Share Attributable to Common Stockholders | 3 Months Ended |
Apr. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Share Attributable to Common Stockholders | Net Income Per Share Attributable to Common Stockholders The following table sets forth the computation of basic and diluted net income per share attributable to common stockholders for the periods presented: Three Months Ended April 30, 2021 2020 Class A Class B Class A Class B Numerator: (in thousands, except share and per share data) Net income $ 177,405 $ 50,126 $ 14,007 $ 13,068 Less: Undistributed earnings attributable to participating securities — (148) — (39) Net income attributable to common stockholders, basic $ 177,405 $ 49,978 $ 14,007 $ 13,029 Reallocation of net income attributable to common stockholders (4,308) 4,308 (591) 591 Net income attributable to common stockholders, diluted $ 173,097 $ 54,286 $ 13,416 $ 13,620 Denominator: Weighted-average shares used in computing net income per share attributable to common stockholders, basic 229,220,253 64,574,525 145,004,142 134,886,969 Weighted-average shares used in computing net income per share attributable to common stockholders, diluted 232,497,872 72,914,547 146,472,265 148,712,693 Net income per share attributable to common stockholders, basic $ 0.77 $ 0.77 $ 0.10 $ 0.10 Net income per share attributable to common stockholders, diluted $ 0.74 $ 0.74 $ 0.09 $ 0.09 The potential shares of common stock that were excluded from the computation of diluted net income per share attributable to common stockholders for the periods presented, because including them would have been anti-dilutive, are as follows: Three Months Ended April 30, 2021 2020 Class A Class B Class A Class B Unvested RSUs 279,046 — 41,999 — Purchase rights committed under the ESPP 21,830 — — — Outstanding stock options — — 205,776 — Total 300,876 — 247,775 — The table above does not include 405,156 and 493,156 shares of issued Class A common stock held by us as of April 30, 2021 and 2020, respectively, that are reserved for the sole purpose of being transferred to nonprofit organizations. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Apr. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsIn June 2021, we entered into an agreement with a technology company pursuant to which we have agreed to purchase $75.0 million of their ordinary shares in a concurrent private placement at a price per ordinary share equal to the per share IPO price (before underwriting discounts and expenses) in their IPO pursuant to a registration statement. The private placement is contingent upon, and is scheduled to close immediately subsequent to, the closing of their IPO as well as the satisfaction of certain conditions to closing. |
Summary of Business and Signi_2
Summary of Business and Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and applicable regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting, and include the accounts of Zoom Video Communications, Inc., its subsidiaries, and a variable interest entity for which we are the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Significant items subject to such estimates and assumptions include, but are not limited to, the estimated expected benefit period for deferred contract acquisition costs, the useful lives of long-lived assets, the incremental borrowing rate for operating leases, stock-based compensation expense, sales and other tax liabilities, the fair value of marketable securities, acquired intangible assets and goodwill, the valuation of deferred income tax assets and uncertain tax positions, and accruals and contingencies. Actual results could differ from those estimates. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Summary Disaggregation of Revenue by Region | The following table summarizes revenue by region based on the billing address of customers: Three Months Ended April 30, 2021 2020 Amount Percentage of Amount Percentage of (in thousands, except percentages) Americas $ 635,784 66 % $ 245,633 75 % Asia Pacific (“APAC”) 123,763 13 31,278 9 Europe, Middle East, and Africa (“EMEA”) 196,690 21 51,256 16 Total $ 956,237 100 % $ 328,167 100 % |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Marketable Securities | As of April 30, 2021 and January 31, 2021, our marketable securities consisted of the following: As of April 30, 2021 Amortized Gross Gross Estimated (in thousands) Commercial paper $ 57,707 $ — $ — $ 57,707 Agency bonds 515,261 44 (148) 515,157 Corporate and other debt securities 469,972 563 (107) 470,428 U.S. government agency securities 1,876,688 124 (292) 1,876,520 Treasury bills 212,484 13 — 212,497 Marketable securities $ 3,132,112 $ 744 $ (547) $ 3,132,309 As of January 31, 2021 Amortized Gross Gross Estimated (in thousands) Commercial paper $ 26,222 $ — $ — $ 26,222 Agency bonds 461,335 79 (49) 461,365 Corporate and other debt securities 465,207 1,113 (64) 466,256 U.S. government agency securities 834,894 28 (257) 834,665 Treasury bills 215,902 6 (6) 215,902 Marketable securities $ 2,003,560 $ 1,226 $ (376) $ 2,004,410 |
Summary of Contractual Maturities of Marketable Securities | The following table presents the contractual maturities of our marketable securities as of April 30, 2021 and January 31, 2021: As of April 30, 2021 January 31, 2021 (in thousands) Less than one year $ 1,597,693 $ 1,017,048 Due in one to five years 1,534,616 987,362 Total $ 3,132,309 $ 2,004,410 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Measured at Fair Value on Recurring Basis | The following tables present information about our financial instruments that are measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value: As of April 30, 2021 Fair Value Level 1 Level 2 Level 3 (in thousands) Financial Assets: Money market funds $ 631,128 $ 631,128 $ — $ — Treasury bills 172,565 — 172,565 — Cash equivalents 803,693 631,128 172,565 — Commercial paper 57,707 — 57,707 — Agency bonds 515,157 — 515,157 — Corporate and other debt securities 470,428 — 470,428 — U.S. government agency securities 1,876,520 — 1,876,520 — Treasury bills 212,497 — 212,497 — Marketable securities 3,132,309 — 3,132,309 — Certificate of deposit included in prepaid expenses and other current assets 100 — 100 — Certificates of deposit included in other assets, noncurrent 2,243 — 2,243 — Convertible notes included in other assets, noncurrent 11,682 — — 11,682 Total financial assets $ 3,950,027 $ 631,128 $ 3,307,217 $ 11,682 As of January 31, 2021 Fair Value Level 1 Level 2 Level 3 (in thousands) Financial Assets: Money market funds $ 958,357 $ 958,357 $ — $ — Treasury bills 618,498 — 618,498 — Cash equivalents 1,576,855 958,357 618,498 — Commercial paper 26,222 — 26,222 — Agency bonds 461,365 — 461,365 — Corporate and other debt securities 466,256 — 466,256 — U.S. government agency securities 834,665 — 834,665 — Treasury bills 215,902 — 215,902 — Marketable securities 2,004,410 — 2,004,410 — Certificate of deposit included in prepaid expenses and other current assets 100 — 100 — Certificates of deposit included in other assets, noncurrent 2,238 — 2,238 — Convertible note included in other assets, noncurrent 5,130 — — 5,130 Total financial assets $ 3,588,733 $ 958,357 $ 2,625,246 $ 5,130 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Balance Sheet Components [Abstract] | |
Schedule of Accounts Receivable | Our short-term accounts receivable consist of the following: As of April 30, 2021 January 31, 2021 (in thousands) Accounts receivable, gross $ 400,010 $ 331,547 Less: Allowance for credit losses (18,000) (20,500) Less: Allowance for returns (15,664) (16,344) Accounts receivable, net $ 366,346 $ 294,703 |
Accounts Receivable, Allowance for Credit Loss | Below is a rollforward of our allowance for credit losses for the three months ended April 30, 2021 and 2020: 2021 2020 (in thousands) Balance as of January 31 $ 20,500 $ 5,150 Provision for credit losses 1,028 3,771 Write-offs (3,528) (621) Balance as of April 30 $ 18,000 $ 8,300 |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following: As of April 30, 2021 January 31, 2021 (in thousands) Prepaid expenses $ 73,992 $ 60,702 Restricted cash from international employee stock sales 40,548 50,475 Other receivables 19,265 4,107 Other 2,521 1,535 Prepaid expenses and other current assets $ 136,326 $ 116,819 |
Schedule of Property and Equipment | Property and equipment consisted of the following: As of April 30, 2021 January 31, 2021 (in thousands) Computer and office equipment $ 178,923 $ 137,445 Software 42,493 36,216 Leasehold improvements 24,223 23,593 Furniture and fixtures 4,562 4,625 Property and equipment, gross 250,201 201,879 Less: accumulated depreciation and amortization (57,791) (51,955) Property and equipment, net $ 192,410 $ 149,924 |
Schedule of Other Noncurrent Assets | Other assets, noncurrent consisted of the following: As of April 30, 2021 January 31, 2021 (in thousands) Accounts receivable, noncurrent $ 26,981 $ 28,008 Equity investment 13,538 13,538 Prepaid expenses, noncurrent 12,568 12,386 Convertible notes 11,682 5,130 Indefinite-lived intangible assets 8,002 8,002 Intangible assets subject to amortization, net 2,653 2,814 Other 6,466 6,075 Other assets, noncurrent $ 81,890 $ 75,953 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: As of April 30, 2021 January 31, 2021 (in thousands) Accrued expenses $ 215,466 $ 157,167 Accrued compensation and benefits 117,348 118,640 Proceeds from employee equity transactions to be remitted to employees and tax authorities 44,190 54,174 Sales and other tax liabilities 37,321 27,453 Operating lease liabilities, current 16,476 15,601 Customer deposit liabilities 13,046 13,050 Other 6,831 6,933 Accrued expenses and other current liabilities $ 450,678 $ 393,018 |
Schedule of Other Liabilities Non Current | Other liabilities, noncurrent consisted of the following: As of April 30, 2021 January 31, 2021 (in thousands) Sales and other tax liabilities $ 52,457 $ 58,133 Other 3,563 3,501 Other liabilities, noncurrent $ 56,020 $ 61,634 |
Stockholders_ Equity and Equi_2
Stockholders’ Equity and Equity Incentive Plans (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Summary of Stock Option Activity Under Equity Incentive Plan | A summary of stock option activity under our equity incentive plan and related information is as follows: Stock Options Outstanding Weighted- Weighted- Aggregate (in thousands, except share, life, and per share data) Balance as of January 31, 2021 9,239,504 $ 7.17 7.0 $ 3,371,457 Granted — $ — Exercised (751,686) $ 4.48 Canceled/forfeited/expired (66,838) $ 5.05 Balance as of April 30, 2021 8,420,980 $ 7.43 6.8 $ 2,628,512 Vested and exercisable as of April 30, 2021 4,853,741 $ 4.39 6.4 $ 1,529,787 |
Summary of Restricted Stock Units (RSUs) Activity Under Equity Incentive Plan | A summary of RSU activity under our equity incentive plan and related information is as follows: RSUs Unvested Weighted- Unvested as of January 31, 2021 4,510,730 $ 194.57 Granted 361,404 $ 334.88 Vested (211,036) $ 103.91 Canceled/forfeited (40,793) $ 260.68 Unvested as of April 30, 2021 4,620,305 $ 209.10 |
Summary of Stock-based Compensation Expense by Line Item | The stock-based compensation expense by line item in the accompanying condensed consolidated statements of operations is summarized as follows: Three Months Ended April 30, 2021 2020 (in thousands) Cost of revenue $ 14,066 $ 3,249 Research and development 20,819 5,224 Sales and marketing 51,812 17,123 General and administrative 12,272 3,181 Total stock-based compensation expense $ 98,969 $ 28,777 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The following table provides details of the provision for income taxes: Three Months Ended April 30, 2021 2020 (in thousands, except percentages) Income before provision for income taxes $ 228,931 $ 29,175 Provision for income taxes 1,400 2,100 Effective tax rate 0.6 % 7.2 % |
Net Income Per Share Attribut_2
Net Income Per Share Attributable to Common Stockholders (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income Per Share | The following table sets forth the computation of basic and diluted net income per share attributable to common stockholders for the periods presented: Three Months Ended April 30, 2021 2020 Class A Class B Class A Class B Numerator: (in thousands, except share and per share data) Net income $ 177,405 $ 50,126 $ 14,007 $ 13,068 Less: Undistributed earnings attributable to participating securities — (148) — (39) Net income attributable to common stockholders, basic $ 177,405 $ 49,978 $ 14,007 $ 13,029 Reallocation of net income attributable to common stockholders (4,308) 4,308 (591) 591 Net income attributable to common stockholders, diluted $ 173,097 $ 54,286 $ 13,416 $ 13,620 Denominator: Weighted-average shares used in computing net income per share attributable to common stockholders, basic 229,220,253 64,574,525 145,004,142 134,886,969 Weighted-average shares used in computing net income per share attributable to common stockholders, diluted 232,497,872 72,914,547 146,472,265 148,712,693 Net income per share attributable to common stockholders, basic $ 0.77 $ 0.77 $ 0.10 $ 0.10 Net income per share attributable to common stockholders, diluted $ 0.74 $ 0.74 $ 0.09 $ 0.09 |
Summary of Potential Shares of Common Stock Excluded from Computation of Diluted Net Income Per Share Attributable to Common Stockholders | The potential shares of common stock that were excluded from the computation of diluted net income per share attributable to common stockholders for the periods presented, because including them would have been anti-dilutive, are as follows: Three Months Ended April 30, 2021 2020 Class A Class B Class A Class B Unvested RSUs 279,046 — 41,999 — Purchase rights committed under the ESPP 21,830 — — — Outstanding stock options — — 205,776 — Total 300,876 — 247,775 — |
Revenue Recognition - Summary D
Revenue Recognition - Summary Disaggregation of Revenue by Region (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 956,237 | $ 328,167 |
Percentage of revenue | 100.00% | 100.00% |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 635,784 | $ 245,633 |
Percentage of revenue | 66.00% | 75.00% |
Asia Pacific (“APAC”) | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 123,763 | $ 31,278 |
Percentage of revenue | 13.00% | 9.00% |
Europe, Middle East, and Africa (“EMEA”) | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 196,690 | $ 51,256 |
Percentage of revenue | 21.00% | 16.00% |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Jan. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||
Unbilled contracts receivable | $ 28.8 | $ 24.6 | |
Revenue recognized included in deferred revenue | $ 419.1 | $ 98 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligation (Details) $ in Millions | Apr. 30, 2021USD ($) |
Disaggregation of Revenue [Line Items] | |
Remaining performance obligation | $ 2,073.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-05-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation percentage | 72.00% |
Revenue remaining performance obligation, expected timing of satisfaction period | 12 months |
Billed consideration | |
Disaggregation of Revenue [Line Items] | |
Remaining performance obligation | $ 1,094.4 |
Unbilled consideration | |
Disaggregation of Revenue [Line Items] | |
Remaining performance obligation | $ 979 |
Marketable Securities - Summary
Marketable Securities - Summary of Marketable Securities (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jan. 31, 2021 |
Marketable Securities [Line Items] | ||
Amortized Cost | $ 3,132,112 | $ 2,003,560 |
Gross Unrealized Gains | 744 | 1,226 |
Gross Unrealized Losses | (547) | (376) |
Estimated Fair Value | 3,132,309 | 2,004,410 |
Commercial paper | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 57,707 | 26,222 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 57,707 | 26,222 |
Agency bonds | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 515,261 | 461,335 |
Gross Unrealized Gains | 44 | 79 |
Gross Unrealized Losses | (148) | (49) |
Estimated Fair Value | 515,157 | 461,365 |
Corporate and other debt securities | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 469,972 | 465,207 |
Gross Unrealized Gains | 563 | 1,113 |
Gross Unrealized Losses | (107) | (64) |
Estimated Fair Value | 470,428 | 466,256 |
U.S. government agency securities | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 1,876,688 | 834,894 |
Gross Unrealized Gains | 124 | 28 |
Gross Unrealized Losses | (292) | (257) |
Estimated Fair Value | 1,876,520 | 834,665 |
Treasury bills | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 212,484 | 215,902 |
Gross Unrealized Gains | 13 | 6 |
Gross Unrealized Losses | 0 | (6) |
Estimated Fair Value | $ 212,497 | $ 215,902 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Details) - USD ($) | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||
Debt securities, available-for-sale, realized gain (loss) | $ 0 | $ 0 |
Marketable Securities - Summa_2
Marketable Securities - Summary of Contractual Maturities of Marketable Securities (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jan. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Less than one year | $ 1,597,693 | $ 1,017,048 |
Due in one to five years | 1,534,616 | 987,362 |
Total | $ 3,132,309 | $ 2,004,410 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Instruments Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jan. 31, 2021 |
Financial Assets: | ||
Marketable securities | $ 3,132,309 | $ 2,004,410 |
Commercial paper | ||
Financial Assets: | ||
Marketable securities | 57,707 | 26,222 |
Agency bonds | ||
Financial Assets: | ||
Marketable securities | 515,157 | 461,365 |
Corporate and other debt securities | ||
Financial Assets: | ||
Marketable securities | 470,428 | 466,256 |
U.S. government agency securities | ||
Financial Assets: | ||
Marketable securities | 1,876,520 | 834,665 |
Fair Value, Recurring Basis | ||
Financial Assets: | ||
Cash equivalents | 803,693 | 1,576,855 |
Marketable securities | 3,132,309 | 2,004,410 |
Total financial assets | 3,950,027 | 3,588,733 |
Fair Value, Recurring Basis | Commercial paper | ||
Financial Assets: | ||
Marketable securities | 57,707 | 26,222 |
Fair Value, Recurring Basis | Agency bonds | ||
Financial Assets: | ||
Marketable securities | 515,157 | 461,365 |
Fair Value, Recurring Basis | Corporate and other debt securities | ||
Financial Assets: | ||
Marketable securities | 470,428 | 466,256 |
Fair Value, Recurring Basis | U.S. government agency securities | ||
Financial Assets: | ||
Marketable securities | 1,876,520 | 834,665 |
Fair Value, Recurring Basis | Treasury bills | ||
Financial Assets: | ||
Marketable securities | 212,497 | 215,902 |
Fair Value, Recurring Basis | Certificates of deposit | ||
Financial Assets: | ||
Certificate of deposit included in prepaid expenses and other current assets | 100 | 100 |
Other assets, noncurrent | 2,243 | 2,238 |
Fair Value, Recurring Basis | Convertible notes included in other assets, noncurrent | ||
Financial Assets: | ||
Other assets, noncurrent | 11,682 | 5,130 |
Fair Value, Recurring Basis | Money market funds | ||
Financial Assets: | ||
Cash equivalents | 631,128 | 958,357 |
Fair Value, Recurring Basis | Treasury bills | ||
Financial Assets: | ||
Cash equivalents | 172,565 | 618,498 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 1 | ||
Financial Assets: | ||
Cash equivalents | 631,128 | 958,357 |
Marketable securities | 0 | 0 |
Total financial assets | 631,128 | 958,357 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 1 | Commercial paper | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 1 | Agency bonds | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 1 | Corporate and other debt securities | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 1 | U.S. government agency securities | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 1 | Treasury bills | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 1 | Certificates of deposit | ||
Financial Assets: | ||
Certificate of deposit included in prepaid expenses and other current assets | 0 | 0 |
Other assets, noncurrent | 0 | 0 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 1 | Convertible notes included in other assets, noncurrent | ||
Financial Assets: | ||
Other assets, noncurrent | 0 | 0 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 1 | Money market funds | ||
Financial Assets: | ||
Cash equivalents | 631,128 | 958,357 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 1 | Treasury bills | ||
Financial Assets: | ||
Cash equivalents | 0 | 0 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 2 | ||
Financial Assets: | ||
Cash equivalents | 172,565 | 618,498 |
Marketable securities | 3,132,309 | 2,004,410 |
Total financial assets | 3,307,217 | 2,625,246 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 2 | Commercial paper | ||
Financial Assets: | ||
Marketable securities | 57,707 | 26,222 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 2 | Agency bonds | ||
Financial Assets: | ||
Marketable securities | 515,157 | 461,365 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 2 | Corporate and other debt securities | ||
Financial Assets: | ||
Marketable securities | 470,428 | 466,256 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 2 | U.S. government agency securities | ||
Financial Assets: | ||
Marketable securities | 1,876,520 | 834,665 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 2 | Treasury bills | ||
Financial Assets: | ||
Marketable securities | 212,497 | 215,902 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 2 | Certificates of deposit | ||
Financial Assets: | ||
Certificate of deposit included in prepaid expenses and other current assets | 100 | 100 |
Other assets, noncurrent | 2,243 | 2,238 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 2 | Convertible notes included in other assets, noncurrent | ||
Financial Assets: | ||
Other assets, noncurrent | 0 | 0 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 2 | Money market funds | ||
Financial Assets: | ||
Cash equivalents | 0 | 0 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 2 | Treasury bills | ||
Financial Assets: | ||
Cash equivalents | 172,565 | 618,498 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 3 | ||
Financial Assets: | ||
Cash equivalents | 0 | 0 |
Marketable securities | 0 | 0 |
Total financial assets | 11,682 | 5,130 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 3 | Commercial paper | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 3 | Agency bonds | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 3 | Corporate and other debt securities | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 3 | U.S. government agency securities | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 3 | Treasury bills | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 3 | Certificates of deposit | ||
Financial Assets: | ||
Certificate of deposit included in prepaid expenses and other current assets | 0 | 0 |
Other assets, noncurrent | 0 | 0 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 3 | Convertible notes included in other assets, noncurrent | ||
Financial Assets: | ||
Other assets, noncurrent | 11,682 | 5,130 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 3 | Money market funds | ||
Financial Assets: | ||
Cash equivalents | 0 | 0 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 3 | Treasury bills | ||
Financial Assets: | ||
Cash equivalents | $ 0 | $ 0 |
Business Combinations (Details)
Business Combinations (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | May 07, 2020 | Jan. 31, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 24,340 | $ 24,340 | |
Minimum | |||
Business Acquisition [Line Items] | |||
Holdback agreements, service period | 1 year | ||
Maximum | |||
Business Acquisition [Line Items] | |||
Holdback agreements, service period | 3 years | ||
Keybase | |||
Business Acquisition [Line Items] | |||
Business acquisition, percentage of voting interests acquired | 100.00% | ||
Payments to acquire businesses, gross | $ 42,900 | ||
Goodwill | 24,300 | ||
Intangible assets, other than goodwill | 3,300 | ||
Business combination, current assets, other | 15,300 | ||
Business combination, cash and equivalents | $ 16,400 | ||
Acquired finite-lived intangible assets, weighted average useful life | 4 years | 5 years | |
Holdback agreements related to employees | $ 20,000 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jan. 31, 2021 | Apr. 30, 2020 | Jan. 31, 2020 |
Property, Plant and Equipment [Abstract] | ||||
Accounts receivable, gross | $ 400,010 | $ 331,547 | ||
Less: Allowance for credit losses | (18,000) | (20,500) | $ (8,300) | $ (5,150) |
Less: Allowance for returns | (15,664) | (16,344) | ||
Accounts Receivable, after Allowance for Credit Loss, Total | $ 366,346 | $ 294,703 |
Balance Sheet Components - Roll
Balance Sheet Components - Rollforward of Allowance For Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 20,500 | $ 5,150 |
Provision for credit losses | 1,028 | 3,771 |
Write-offs | (3,528) | (621) |
Ending balance | $ 18,000 | $ 8,300 |
Balance Sheet Components - Prep
Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jan. 31, 2021 |
Balance Sheet Components [Abstract] | ||
Prepaid expenses | $ 73,992 | $ 60,702 |
Restricted cash from international employee stock sales | 40,548 | 50,475 |
Other receivables | 19,265 | 4,107 |
Other | 2,521 | 1,535 |
Prepaid expenses and other current assets | $ 136,326 | $ 116,819 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Property and Equipment Net (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jan. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 250,201 | $ 201,879 |
Less: accumulated depreciation and amortization | (57,791) | (51,955) |
Property and equipment, net | 192,410 | 149,924 |
Computer and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 178,923 | 137,445 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 42,493 | 36,216 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 24,223 | 23,593 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 4,562 | $ 4,625 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Balance Sheet Components [Abstract] | ||
Depreciation and amortization expense | $ 10.5 | $ 5.3 |
Balance Sheet Components - Othe
Balance Sheet Components - Other Noncurrent Assets (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jan. 31, 2021 |
Balance Sheet Components [Abstract] | ||
Accounts receivable, noncurrent | $ 26,981 | $ 28,008 |
Equity investment | 13,538 | 13,538 |
Prepaid expenses, noncurrent | 12,568 | 12,386 |
Convertible notes | 11,682 | 5,130 |
Indefinite-lived intangible assets | 8,002 | 8,002 |
Intangible assets subject to amortization, net | 2,653 | 2,814 |
Other | 6,466 | 6,075 |
Other assets, noncurrent | $ 81,890 | $ 75,953 |
Balance Sheet Components - Sc_3
Balance Sheet Components - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jan. 31, 2021 |
Balance Sheet Components [Abstract] | ||
Accrued expenses | $ 215,466 | $ 157,167 |
Accrued compensation and benefits | 117,348 | 118,640 |
Proceeds from employee equity transactions to be remitted to employees and tax authorities | 44,190 | 54,174 |
Sales and other tax liabilities | 37,321 | 27,453 |
Operating lease liabilities, current | 16,476 | 15,601 |
Customer deposit liabilities | 13,046 | 13,050 |
Other | 6,831 | 6,933 |
Accrued expenses and other current liabilities | $ 450,678 | $ 393,018 |
Balance Sheet Components - Sc_4
Balance Sheet Components - Schedule of Other Liabilities Non Current (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jan. 31, 2021 |
Balance Sheet Components [Abstract] | ||
Sales and other tax liabilities | $ 52,457 | $ 58,133 |
Other | 3,563 | 3,501 |
Other liabilities, noncurrent | $ 56,020 | $ 61,634 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Jul. 30, 2020officer | Jun. 11, 2020officer | Apr. 08, 2020officer | Apr. 30, 2021USD ($) |
Violation Of Securities Act Section 10(b), 20(a), and Rule 10b-5 | ||||
Other Commitments [Line Items] | ||||
Loss contingency, number of defendants | officer | 8 | 9 | 2 | |
U.S. Privacy Class Actions | ||||
Other Commitments [Line Items] | ||||
Aggregate legal settlement charge | $ | $ 66.9 |
Stockholders_ Equity and Equi_3
Stockholders’ Equity and Equity Incentive Plans - Additional Information (Details) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Apr. 30, 2021USD ($)plan$ / sharesshares | Jan. 31, 2021$ / sharesshares | Apr. 30, 2019$ / sharesshares | |
Class of Stock [Line Items] | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |
Number of equity incentive plans | plan | 2 | ||
Stock options | |||
Class of Stock [Line Items] | |||
Unrecognized stock-based compensation expenses related to outstanding unvested stock options | $ | $ 39.6 | ||
Unrecognized stock-based compensation excepted to be recognized over a weighted-average period | 1 year 3 months 18 days | ||
RSUs | |||
Class of Stock [Line Items] | |||
Unrecognized stock-based compensation excepted to be recognized over a weighted-average period | 2 years 6 months | ||
Unrecognized stock-based compensation expenses | $ | $ 772.9 | ||
Employee Stock Purchase Plan | |||
Class of Stock [Line Items] | |||
Unrecognized stock-based compensation excepted to be recognized over a weighted-average period | 1 month 6 days | ||
Unrecognized stock-based compensation expenses | $ | $ 10.2 | ||
Class A Common Stock | |||
Class of Stock [Line Items] | |||
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 | |
Class A Common Stock | Initial public offering | |||
Class of Stock [Line Items] | |||
Common stock, shares authorized (in shares) | 2,000,000,000 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | ||
Class B Common Stock | |||
Class of Stock [Line Items] | |||
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 | |
Class B Common Stock | Initial public offering | |||
Class of Stock [Line Items] | |||
Common stock, shares authorized (in shares) | 300,000,000 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 |
Stockholders_ Equity and Equi_4
Stockholders’ Equity and Equity Incentive Plans - Summary of Stock Option Activity Under Equity Incentive Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Apr. 30, 2021 | Jan. 31, 2021 | |
Outstanding Stock Options | ||
Beginning balance (in shares) | 9,239,504 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (751,686) | |
Cancelled/forfeited/expired (in shares) | (66,838) | |
Ending balance (in shares) | 8,420,980 | 9,239,504 |
Weighted- Average Exercise Price | ||
Beginning balance (in dollars per share) | $ 7.17 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 4.48 | |
Cancelled/forfeited/expired (in dollars per share) | 5.05 | |
Ending balance (in dollars per share) | $ 7.43 | $ 7.17 |
Weighted- Average Remaining Contractual Life (Years) | 6 years 9 months 18 days | 7 years |
Options outstanding, aggregate intrinsic value | $ 2,628,512 | $ 3,371,457 |
Outstanding stock options, vested and exercisable (in shares) | 4,853,741 | |
Weighted average exercise price, vested and exercisable (in dollars per share) | $ 4.39 | |
Weighted-average remaining contractual life (years), vested and exercisable | 6 years 4 months 24 days | |
Options outstanding, aggregate intrinsic value, vested and exercisable | $ 1,529,787 |
Stockholders_ Equity and Equi_5
Stockholders’ Equity and Equity Incentive Plans - Summary of Restricted Stock Units Activity Under Equity Incentive Plan (Details) - RSUs | 3 Months Ended |
Apr. 30, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning balance (in shares) | shares | 4,510,730 |
Granted (in shares) | shares | 361,404 |
Vested (in shares) | shares | (211,036) |
Cancelled/forfeited (in shares) | shares | (40,793) |
Ending balance (in shares) | shares | 4,620,305 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Beginning balance (in dollars per share) | $ / shares | $ 194.57 |
Granted (in dollars per share) | $ / shares | 334.88 |
Vested (in dollars per share) | $ / shares | 103.91 |
Cancelled/forfeited (in dollars per share) | $ / shares | 260.68 |
Ending balance (in dollars per share) | $ / shares | $ 209.10 |
Stockholders_ Equity and Equi_6
Stockholders’ Equity and Equity Incentive Plans - Summary of Stock-based Compensation Expense by Line Item (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 98,969 | $ 28,777 |
Cost of revenue | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 14,066 | 3,249 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 20,819 | 5,224 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 51,812 | 17,123 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 12,272 | $ 3,181 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income before provision for income taxes | $ 228,931 | $ 29,175 |
Provision for income taxes | $ 1,400 | $ 2,100 |
Effective tax rate | 0.60% | 7.20% |
Net Income Per Share Attribut_3
Net Income Per Share Attributable to Common Stockholders - Schedule of Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Numerator: | ||
Net income | $ 227,531 | $ 27,075 |
Net income attributable to common stockholders | $ 227,383 | $ 27,036 |
Denominator: | ||
Weighted-average shares used in computing net income per share attributable to common stockholders, basic (in shares) | 293,794,778 | 279,891,111 |
Weighted-average shares used in computing net income per share attributable to common stockholders, diluted (in shares) | 305,412,419 | 295,184,958 |
Net income per share attributable to common stockholders, basic (in dollars per share) | $ 0.77 | $ 0.10 |
Net income per share attributable to common stockholders, diluted (in dollars per share) | $ 0.74 | $ 0.09 |
Class A Common Stock | ||
Numerator: | ||
Net income | $ 177,405 | $ 14,007 |
Less: undistributed earnings attributable to participating securities | 0 | 0 |
Net income attributable to common stockholders | 177,405 | 14,007 |
Reallocation of net income attributable to common stockholders | (4,308) | (591) |
Net income (loss) attributable to common stockholders, diluted | $ 173,097 | $ 13,416 |
Denominator: | ||
Weighted-average shares used in computing net income per share attributable to common stockholders, basic (in shares) | 229,220,253 | 145,004,142 |
Weighted-average shares used in computing net income per share attributable to common stockholders, diluted (in shares) | 232,497,872 | 146,472,265 |
Net income per share attributable to common stockholders, basic (in dollars per share) | $ 0.77 | $ 0.10 |
Net income per share attributable to common stockholders, diluted (in dollars per share) | $ 0.74 | $ 0.09 |
Class B Common Stock | ||
Numerator: | ||
Net income | $ 50,126 | $ 13,068 |
Less: undistributed earnings attributable to participating securities | (148) | (39) |
Net income attributable to common stockholders | 49,978 | 13,029 |
Reallocation of net income attributable to common stockholders | 4,308 | 591 |
Net income (loss) attributable to common stockholders, diluted | $ 54,286 | $ 13,620 |
Denominator: | ||
Weighted-average shares used in computing net income per share attributable to common stockholders, basic (in shares) | 64,574,525 | 134,886,969 |
Weighted-average shares used in computing net income per share attributable to common stockholders, diluted (in shares) | 72,914,547 | 148,712,693 |
Net income per share attributable to common stockholders, basic (in dollars per share) | $ 0.77 | $ 0.10 |
Net income per share attributable to common stockholders, diluted (in dollars per share) | $ 0.74 | $ 0.09 |
Net Income Per Share Attribut_4
Net Income Per Share Attributable to Common Stockholders - Summary of Potential Shares of Common Stock Excluded from Computation of Diluted Net Income Per Share Attributable to Common Stockholders (Details) - shares | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Class A Common Stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 300,876 | 247,775 |
Class B Common Stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 0 | 0 |
Unvested RSUs | Class A Common Stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 279,046 | 41,999 |
Unvested RSUs | Class B Common Stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 0 | 0 |
Purchase rights committed under the ESPP | Class A Common Stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 21,830 | 0 |
Purchase rights committed under the ESPP | Class B Common Stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 0 | 0 |
Outstanding stock options | Class A Common Stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 0 | 205,776 |
Outstanding stock options | Class B Common Stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 0 | 0 |
Held For Charitable Contributions | Class A Common Stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 405,156 | 493,156 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | 1 Months Ended |
Jun. 30, 2021USD ($) | |
Subsequent Event | |
Subsequent Event [Line Items] | |
Amount of ordinary shares purchased | $ 75 |
Uncategorized Items - zm-202104
Label | Element | Value |
Restricted Cash and Cash Equivalents, Noncurrent | us-gaap_RestrictedCashAndCashEquivalentsNoncurrent | $ 2,295,000 |
Restricted Cash and Cash Equivalents, Noncurrent | us-gaap_RestrictedCashAndCashEquivalentsNoncurrent | 2,243,000 |
Restricted Cash and Cash Equivalents, Current | us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue | 40,648,000 |
Restricted Cash and Cash Equivalents, Current | us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue | $ 267,191,000 |