Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Jan. 31, 2022 | Feb. 18, 2022 | Jul. 31, 2021 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 31, 2022 | ||
Current Fiscal Year End Date | --01-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-38865 | ||
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 | ||
Entity Address, Address Line Two | 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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 93.2 | ||
Documents Incorporated by Reference | Portions of the registrant's definitive Proxy Statement relating to the 2022 Annual Meeting of Stockholders are incorporated herein by references in Part III of this Annual Report on Form 10-K to the extent stated herein. Such Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the registrant's fiscal year ended January 31, 2022. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001585521 | ||
Class A Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 247,289,260 | ||
Class B Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 51,834,703 |
Audit Information
Audit Information | 12 Months Ended |
Jan. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | San Francisco, California |
Auditor Firm ID | 185 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,062,820 | $ 2,240,303 |
Marketable securities | 4,356,446 | 2,004,410 |
Accounts receivable, net of allowances of $24,696 and $36,844 as of January 31, 2022 and 2021, respectively | 419,673 | 294,703 |
Deferred contract acquisition costs, current | 199,266 | 136,630 |
Prepaid Expense and Other Assets, Current | 145,602 | 116,819 |
Total current assets | 6,183,807 | 4,792,865 |
Deferred contract acquisition costs, noncurrent | 164,714 | 157,262 |
Property and equipment, net | 222,354 | 149,924 |
Operating lease right-of-use assets | 95,965 | 97,649 |
Strategic investments | 367,814 | 18,668 |
Goodwill | 27,607 | 24,340 |
Deferred Income Tax Assets, Net | 382,296 | 1,519 |
Other assets, noncurrent | 106,761 | 55,766 |
Total assets | 7,551,318 | 5,297,993 |
Current liabilities: | ||
Accounts payable | 7,841 | 8,664 |
Accrued expenses and other current liabilities | 430,415 | 393,018 |
Deferred revenue, current | 1,141,435 | 858,284 |
Total current liabilities | 1,579,691 | 1,259,966 |
Deferred revenue, noncurrent | 38,481 | 25,211 |
Operating lease liabilities, noncurrent | 85,018 | 90,415 |
Other liabilities, noncurrent | 68,110 | 61,634 |
Total liabilities | 1,771,300 | 1,437,226 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value per share, 200,000,000 shares authorized as of January 31, 2022 and 2021; zero shares issued and outstanding as of January 31, 2022 and 2021 | 0 | 0 |
Common stock, $0.001 par value per share, 2,000,000,000 Class A shares authorized as of January 31, 2022 and 2021; 247,044,454 and 215,737,924 shares issued and outstanding as of January 31, 2022 and 2021, respectively; 300,000,000 Class B shares authorized as of January 31, 2022 and 2021; 51,993,351 and 77,811,299 shares issued and outstanding as of January 31, 2022 and 2021, respectively | 299 | 292 |
Additional paid-in capital | 3,749,514 | 3,187,168 |
Accumulated other comprehensive (loss) income | (17,902) | 839 |
Retained earnings | 2,048,107 | 672,468 |
Total stockholders’ equity | 5,780,018 | 3,860,767 |
Total liabilities and stockholders’ equity | $ 7,551,318 | $ 5,297,993 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Accounts receivable, allowances | $ 24,696 | $ 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, par value (in dollars per share) | $ 0.001 | |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 247,044,454 | 215,737,924 |
Common stock, shares outstanding (in shares) | 247,044,454 | 215,737,924 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 51,993,351 | 77,811,299 |
Common stock, shares outstanding (in shares) | 51,993,351 | 77,811,299 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Income Statement [Abstract] | |||
Revenue | $ 4,099,864 | $ 2,651,368 | $ 622,658 |
Cost of revenue | 1,054,554 | 821,989 | 115,396 |
Gross profit | 3,045,310 | 1,829,379 | 507,262 |
Operating expenses: | |||
Research and development | 362,990 | 164,080 | 67,079 |
Sales and marketing | 1,135,959 | 684,904 | 340,646 |
General and administrative | 482,770 | 320,547 | 86,841 |
Total operating expenses | 1,981,719 | 1,169,531 | 494,566 |
Income from operations | 1,063,591 | 659,848 | 12,696 |
Gains on strategic investments, net | 43,761 | 2,538 | 0 |
Other (expense) income, net | (5,720) | 15,648 | 13,666 |
Total | 1,101,632 | 678,034 | 26,362 |
(Benefit from) provision for income taxes | (274,007) | 5,718 | 1,057 |
Net income | 1,375,639 | 672,316 | 25,305 |
Undistributed earnings attributable to participating securities | (582) | (789) | (3,555) |
Net income attributable to common stockholders | $ 1,375,057 | $ 671,527 | $ 21,750 |
Net income per share attributable to common stockholders: | |||
Basic (in dollars per share) | $ 4.64 | $ 2.37 | $ 0.09 |
Diluted (in dollars per share) | $ 4.50 | $ 2.25 | $ 0.09 |
Weighted-average shares used in computing net income per share attributable to common stockholders: | |||
Basic (in shares) | 296,334,894 | 283,853,654 | 233,641,336 |
Diluted (in shares) | 305,826,505 | 298,127,669 | 254,298,014 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 1,375,639 | $ 672,316 | $ 25,305 |
Other comprehensive (loss) income: | |||
Unrealized (loss) gain on available-for-sale marketable securities, net of tax | (18,741) | 30 | 944 |
Comprehensive income | $ 1,356,898 | $ 672,346 | $ 26,249 |
CONSOLIDATED STATEMENTS OF CONV
CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' (DEFICIT) EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive (Loss) Income | (Accumulated Deficit) Retained Earnings |
Beginning balance (in shares) at Jan. 31, 2019 | 152,665,804 | ||||
Beginning balance at Jan. 31, 2019 | $ 159,552 | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Conversion of convertible preferred stock to common stock upon initial public offering (in shares) | (152,665,804) | ||||
Issuance of common stock upon follow-on public offering, net of underwriting discounts and commissions and other offering costs | $ (159,552) | ||||
Ending balance (in shares) at Jan. 31, 2020 | 0 | ||||
Ending balance at Jan. 31, 2020 | $ 0 | ||||
Beginning balance (in shares) at Jan. 31, 2019 | 90,327,435 | ||||
Beginning balance at Jan. 31, 2019 | (7,439) | $ 89 | $ 17,760 | $ (135) | $ (25,153) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Conversion of convertible preferred stock to common stock upon initial public offering (in shares) | 152,665,804 | ||||
Conversion of convertible preferred stock to common stock upon initial public offering | 159,552 | $ 153 | 159,399 | ||
Conversion of convertible promissory notes and accrued interest to common stock upon initial public offering (in shares) | 426,223 | ||||
Conversion of convertible promissory notes and accrued interest to common stock upon initial public offering | 15,344 | 15,344 | |||
Issuance of common stock, net of underwriting discounts and commissions and other offering costs (in shares) | 15,819,646 | ||||
Issuance of common stock, net of underwriting discounts and commissions and other offering costs | 541,499 | $ 16 | 541,483 | ||
Issuance of common stock upon exercise of stock options, net of repurchases and release of restricted stock units (in shares) | 18,501,767 | ||||
Issuance of common stock upon exercise of stock options, net of repurchases and release of restricted stock units | 9,771 | $ 19 | 9,752 | ||
Issuance of common stock reserved for charitable donation (in shares) | 500,000 | ||||
Issuance of common stock for employee stock purchase plan (in shares) | 490,268 | ||||
Issuance of common stock for employee stock purchase plan | 15,482 | 15,482 | |||
Stock-based compensation expense | 73,485 | 73,485 | |||
Other comprehensive income | 944 | 944 | |||
Net income | 25,305 | 25,305 | |||
Ending balance (in shares) at Jan. 31, 2020 | 278,731,143 | ||||
Ending balance at Jan. 31, 2020 | $ 833,943 | $ 277 | 832,705 | 809 | 152 |
Ending balance (in shares) at Jan. 31, 2021 | 0 | ||||
Ending balance at Jan. 31, 2021 | $ 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options (in shares) | 7,378,477 | ||||
Issuance of common stock upon exercise of stock options | 29,107 | $ 7 | 29,100 | ||
Issuance of common stock, net of underwriting discounts and commissions and other offering costs (in shares) | 5,882,353 | ||||
Issuance of common stock, net of underwriting discounts and commissions and other offering costs | 1,979,544 | $ 6 | 1,979,538 | ||
Issuance of common stock upon release of restricted stock units (in shares) | 633,697 | ||||
Issuance of common stock upon release of restricted stock units | 1 | $ 1 | |||
Charitable donation of common stock | 23,312 | 23,312 | |||
Issuance of common stock for employee stock purchase plan (in shares) | 923,553 | ||||
Issuance of common stock for employee stock purchase plan | 38,433 | $ 1 | 38,432 | ||
Stock-based compensation expense | 284,081 | 284,081 | |||
Other comprehensive income | 30 | 30 | |||
Net income | 672,316 | 672,316 | |||
Ending balance (in shares) at Jan. 31, 2021 | 293,549,223 | ||||
Ending balance at Jan. 31, 2021 | $ 3,860,767 | $ 292 | 3,187,168 | 839 | 672,468 |
Ending balance (in shares) at Jan. 31, 2022 | 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options (in shares) | 2,881,485 | 2,881,485 | |||
Issuance of common stock upon exercise of stock options | $ 14,810 | $ 4 | 14,806 | ||
Issuance of common stock upon release of restricted stock units (in shares) | 1,768,702 | ||||
Issuance of common stock upon release of restricted stock units | 2 | $ 2 | |||
Issuance of common stock for employee stock purchase plan (in shares) | 838,395 | ||||
Issuance of common stock for employee stock purchase plan | 59,331 | $ 1 | 59,330 | ||
Stock-based compensation expense | 488,210 | 488,210 | |||
Other comprehensive income | (18,741) | (18,741) | |||
Net income | 1,375,639 | 1,375,639 | |||
Ending balance (in shares) at Jan. 31, 2022 | 299,037,805 | ||||
Ending balance at Jan. 31, 2022 | $ 5,780,018 | $ 299 | $ 3,749,514 | $ (17,902) | $ 2,048,107 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 1,375,639 | $ 672,316 | $ 25,305 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Stock-based compensation expense | 477,287 | 275,818 | 73,109 |
Increase (decrease) of valuation allowance | (327,957) | 0 | 0 |
Amortization of deferred contract acquisition costs | 177,283 | 104,306 | 37,101 |
Gains on strategic investments, net | (43,761) | (2,538) | 0 |
Depreciation and amortization | 48,188 | 28,857 | 16,449 |
Provision for accounts receivable allowances | 36,747 | 32,007 | 6,370 |
Non-cash operating lease cost | 18,387 | 10,887 | 6,885 |
Charitable donation of common stock | 0 | 23,312 | 0 |
Amortization on marketable securities | 25,316 | 5,433 | (2,041) |
Other | 4,591 | 927 | 973 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (159,183) | (219,039) | (64,715) |
Prepaid expenses and other assets | (155,934) | (68,521) | (24,805) |
Deferred contract acquisition costs | (247,371) | (307,068) | (72,714) |
Accounts payable | (2,218) | 3,481 | (2,030) |
Accrued expenses and other liabilities | 101,369 | 251,654 | 51,179 |
Deferred revenue | 293,887 | 665,724 | 106,286 |
Operating lease liabilities, net | (17,004) | (6,379) | (5,460) |
Net cash provided by operating activities | 1,605,266 | 1,471,177 | 151,892 |
Cash flows from investing activities: | |||
Purchases of marketable securities | (4,434,749) | (2,056,470) | (800,228) |
Maturities of marketable securities | 1,733,043 | 580,795 | 343,554 |
Sales of marketable securities | 296,867 | 36,897 | 0 |
Purchases of property and equipment | (132,590) | (79,972) | (38,084) |
Purchases of strategic investments | (305,149) | (13,000) | (3,000) |
Cash paid for acquisition, net of cash acquired | (3,501) | (26,486) | 0 |
Purchases of intangible assets | (13,018) | (5,843) | (141) |
Other | 0 | 1,659 | (1,569) |
Net cash used in investing activities | (2,859,097) | (1,562,420) | (499,468) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock for employee stock purchase plan | 59,331 | 38,433 | 15,482 |
Proceeds from exercise of stock options, net of repurchases | 14,404 | 28,550 | 9,169 |
Proceeds from employee equity transactions (remitted) to be remitted to employees and tax authorities, net | (40,004) | 4,088 | 48,547 |
Proceeds from follow-on public offering, net of underwriting discounts and commissions and other offering costs | 0 | 1,979,206 | 0 |
Proceeds from initial public offering and private placement, net of underwriting discounts and commissions and other offering costs | 0 | 0 | 542,492 |
Other | 337 | 0 | 0 |
Net cash provided by financing activities | 34,068 | 2,050,277 | 615,690 |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (1,219,763) | 1,959,034 | 268,114 |
Cash, cash equivalents, and restricted cash—beginning of year | 2,293,116 | 334,082 | 65,968 |
Cash, cash equivalents, and restricted cash—end of year | 1,073,353 | 2,293,116 | 334,082 |
Supplemental disclosures of cash flow information | |||
Cash paid for income taxes, net | 38,979 | 3,181 | 1,070 |
Supplemental disclosures of non-cash investing and financing information | |||
Purchase of equipment during the period included in accounts payable and accrued expenses | 13,728 | 34,514 | 1,422 |
Vesting of early exercised stock options and restricted stock awards | 407 | 558 | 725 |
Reconciliation of cash, cash equivalents, and restricted cash within the consolidated balance sheets to the amounts shown in the consolidated statements of cash flows above: | |||
Cash and cash equivalents | 1,062,820 | 2,240,303 | 283,134 |
Restricted cash, current included in prepaid expenses and other current assets | 10,236 | 50,575 | 48,647 |
Restricted cash, noncurrent included in other assets, noncurrent | 297 | 2,238 | 2,301 |
Total cash, cash equivalents, and restricted cash | 1,073,353 | 2,293,116 | 334,082 |
Class B Common Stock | |||
Cash flows from operating activities: | |||
Net income | 270,271 | 239,348 | 19,855 |
Supplemental disclosures of non-cash investing and financing information | |||
Conversion of convertible preferred stock to Class B common stock upon initial public offering | 0 | 0 | 159,552 |
Class A Common Stock | |||
Cash flows from operating activities: | |||
Net income | 1,105,368 | 432,968 | 5,450 |
Supplemental disclosures of non-cash investing and financing information | |||
Conversion of debt to Class A common stock | $ 0 | $ 0 | $ 15,344 |
Summary of Business and Signifi
Summary of Business and Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2022 | |
Accounting Policies [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”) connect people through our core unified communications offering, which frictionlessly brings together video, phone, chat, and webinars, and enables meaningful experiences 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 ended January 31, 2022. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) 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 The preparation of 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 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 materially 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, the availability and distribution of vaccines, and their impact on our customers and our sales cycles. During the fiscal years ended January 31, 2022 and 2021, 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. Concentration of Risks Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, restricted cash, and accounts receivable. We maintain our cash, cash equivalents, marketable securities, and restricted cash with high-quality financial institutions with investment-grade ratings. A majority of the cash balances are with U.S. banks and are insured to the extent defined by the Federal Deposit Insurance Corporation. No single customer accounted for more than 10% of accounts receivable at January 31, 2022 or 2021. No single customer accounted for 10% or more of total revenue during the fiscal years ended January 31, 2022, 2021, or 2020. Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents consist of cash in banks and highly liquid investments, primarily money market funds, purchased with an original maturity of three months or less. Restricted cash consists of certificates of deposit collateralizing our operating leases and cash from proceeds from international employees’ sales of our common stock, and is included in prepaid expenses and other current assets and other assets, noncurrent in the consolidated balance sheets. As of January 31, 2022 and 2021, we had $10.2 million and $50.5 million, respectively, of cash from proceeds from international employees’ sales of our common stock. The amount is held in our bank account until it is remitted to the employees and the tax authorities. Due to the restrictions on the use of the funds in the bank account, we have classified the amount as restricted cash included in prepaid expenses and other current assets, and a corresponding amount is included in accrued expenses and other current liabilities in the consolidated balance sheets. Allowance for Credit Losses We are exposed to credit losses primarily through our accounts receivable and investments in available-for-sale debt securities. See Note 3 for additional information related to our available-for-sale debt securities. 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 January 31, 2022 As of January 31, 2021 (in thousands) Accounts receivable, gross $ 444,369 $ 331,547 Less: Allowance for credit losses (17,000) (20,500) Less: Allowance for returns (7,696) (16,344) Accounts receivable, net $ 419,673 $ 294,703 We maintain an allowance for credit losses for expected uncollectible accounts receivable, which is recorded as an offset to accounts receivable, and changes in such are classified as general and administrative expense in the consolidated statements of operations. The allowance for credit losses is based on management’s estimate for expected credit losses for outstanding accounts receivable. We determine expected credit losses based on historical write-off experience, an analysis of the aging of outstanding receivables, customer payment patterns, the establishment of specific reserves for customers in an adverse financial condition, and adjust based upon our expectations of changes in macroeconomic conditions that may impact the collectibility of outstanding receivables, including noncurrent accounts receivable. We also consider current market conditions and reasonable and supportable forecasts of future economic conditions to inform adjustments to historical loss data. We reassess the adequacy of the allowance for credit losses each reporting period. Furthermore, the allowance for sales returns is recorded as an offset to accounts receivable, and changes to the allowance are classified as a reduction in revenue in the consolidated statements of operations. We estimate returns from sales to customers based on historical chargebacks and return rates. For the fiscal year ended January 31, 2022, our assessment considered business and market disruptions caused by COVID-19 and estimates of credit and collectibility trends. The continued volatility in market conditions and evolving shifts in credit trends are difficult to predict, causing variability and volatility that may have a material impact on our allowance for credit losses in future periods. Below is a rollforward of our allowance for credit losses for the fiscal year ended January 31, 2022. January 31, 2022 January 31, 2021 (in thousands) Balance as of beginning of year $ 20,500 $ 5,150 Provision for credit losses 32,587 25,651 Write-offs (36,087) (10,301) Balance as of end of year $ 17,000 $ 20,500 Available-for-sale Investments Available-for-sale investments consist primarily of high-grade commercial paper, agency bonds, corporate bonds, corporate and other debt securities, U.S. government agency securities, and treasury bills. We classify our marketable securities as available-for-sale at the time of purchase and reevaluate such classification at each balance sheet date. We may sell these securities at any time for use in current operations even if they have not yet reached maturity. As a result, we classify our securities, including those with maturities beyond 12 months, as current assets in the consolidated balance sheets. We carry these securities at fair value and record unrealized gains and losses in accumulated other comprehensive (loss) income, which is reflected as a component of stockholders’ equity. We evaluate our securities with unrealized loss positions as to whether the declines in fair value were due to credit losses, and record the portion of impairment relating to the credit losses through allowance for credit losses limited to the amount that fair value was less than the amortized cost basis. Realized gains and losses from the sale of marketable securities are determined based on the specific identification method. Realized gains and losses are reported in other (expense) income, net in the consolidated statements of operations. Strategic Investments We hold strategic investments in publicly held equity securities and privately held debt and equity securities in which we do not have a controlling interest. Publicly held equity securities are measured using quoted prices in their respective active markets with changes recorded through gains on strategic investments, net in the consolidated statements of operations. Privately held equity securities without a readily determinable fair value are recorded at cost and adjusted for impairments and observable price changes with a same or similar security from the same issuer (i.e. using the measurement alternative) and are recorded through gains on strategic investments, net in the consolidated statements of operations. If, based on the terms of these publicly traded and privately held securities, we determine that we exercise significant influence on the entity to which these securities relate, we will apply the equity method of accounting for such investments. Privately held equity securities that are accounted for under the equity method are measured at cost less any impairment, plus or minus our share of equity method investee income or loss, which is reported in gains on strategic investments, net in the consolidated statements of operations. Privately held debt securities are recorded at fair value with changes in fair value recorded through accumulated other comprehensive (loss) income on the consolidated balance sheets. On a quarterly basis, we assess our privately held debt and equity securities in our strategic investment portfolio for indicators for impairment. As of January 31, 2022, we have not recognized any impairments to our privately held debt and equity securities. Fair Value Measurements Fair value is defined as the exchange price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We measure financial assets and liabilities at fair value at each reporting period using a fair value hierarchy, which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Financial instruments consist of cash equivalents, restricted cash, marketable securities, accounts receivable, and accounts payable. Cash equivalents, restricted cash, and marketable securities are stated at fair value on a recurring basis. Accounts receivable and accounts payable are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment date. Property and Equipment, Net Property and equipment, net, are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the respective assets, determined to be three Software Development Costs We capitalize certain development costs related to our unified communications platform during the application development stage as long as it is probable the project will be completed, and the software will be used to perform the function intended. Capitalized software development costs are recorded as part of property and equipment, net. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. Capitalized software development costs are amortized on a straight-line basis over the software’s estimated useful life, which is generally three years, and are recorded in cost of revenue in the consolidated statements of operations. We evaluate the useful lives of these assets on an annual basis and test for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. We have capitalized $20.2 million, $19.4 million, and $3.1 million of software development costs during the fiscal years ended January 31, 2022, 2021, and 2020, respectively. Leases All lease arrangements are generally recognized at lease commencement. Operating lease right-of-use (“ROU”) assets and operating lease liabilities are recognized at commencement. For short-term leases (an initial term of 12 months or less), an ROU asset and corresponding lease liability are not recorded and we record rent expense in our consolidated statements of operations on a straight-line basis over the lease term and record variable lease payments as incurred. ROU assets represent our right to use an underlying asset during the reasonably certain lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of fixed payments not yet paid over the lease term. We use our incremental borrowing rate based on the information available at the commencement date in determining the lease liabilities as our leases generally do not provide an implicit rate. Our incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, in an economic environment where the leased asset is located. ROU assets also include any initial direct costs incurred and any lease payments made at or before the lease commencement date, less lease incentives received. We reassess the lease term if and when a significant event or change in circumstances occurs within our control. We currently do not have any finance leases. Impairment of Long-Lived Assets We evaluate long-lived assets or asset groups for impairment whenever events indicate that the carrying value of an asset or asset group may not be recoverable based on expected future cash flows attributable to that asset or asset group. Recoverability of assets held and used is measured by comparing the carrying amount of an asset or an asset group to estimated undiscounted future net cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset or asset group exceeds estimated undiscounted future cash flows, then an impairment charge would be recognized based on the excess of the carrying amount of the asset or asset group over its fair value. Assets to be disposed of are reported at the lower of their carrying amount or fair value, less costs to sell. There were no impairment charges recognized related to long-lived assets during the fiscal years ended January 31, 2022, 2021, or 2020. Business Combinations We account for our business combinations using the acquisition method of accounting, which requires, among other things, allocation of the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed at their estimated fair values on the acquisition date. The excess of the fair value of purchase consideration over the values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair value of assets acquired and liabilities assumed, we make estimates and assumptions, especially with respect to intangible assets. Our estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, not to exceed one year from the date of acquisition, we may record adjustments to the assets acquired and liabilities assumed, with a corresponding offset to goodwill if new information is obtained related to facts and circumstances that existed as of the acquisition date. After the measurement period, any subsequent adjustments are reflected in the consolidated statements of operations. Acquisition costs, such as legal and consulting fees, are expensed as incurred. Uncertain tax positions and tax-related valuation allowances are initially established in connection with a business combination as of the acquisition date. We continue to collect information and reevaluate these estimates and assumptions quarterly. We will record any adjustments to our preliminary estimates to goodwill, provided that it is within the one-year measurement period. Goodwill and Intangible Assets Goodwill amounts are not amortized, but rather tested for impairment at least annually or more often if circumstances indicate that the carrying value may not be recoverable. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. We have one reporting unit and as a result, goodwill has been assigned to the single reporting unit. We conducted our annual impairment test of goodwill in the fourth quarter of fiscal year 2022 and determined that no adjustment to the carrying value of goodwill was required. Intangible assets consist of acquired identifiable intangible assets resulting from business combinations, as well as other intangible assets purchased outside of a business combination, such as domains and intellectual property addresses. Finite-lived intangible assets are initially recorded at fair value and are amortized on a straight-line basis over their estimated useful lives. Amortization expense of developed technology is recorded within cost of revenue in the consolidated statements of operations. We routinely evaluate the estimated remaining useful lives of our finite-lived intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization. Indefinite-lived intangible assets are recorded at fair value and are not amortized. We review the useful lives of indefinite-lived intangible assets each reporting period to determine whether events and circumstances continue to support the indefinite useful life classification. If we determine that the life of an intangible asset is no longer indefinite, that asset would be tested for impairment and amortized prospectively over its estimated remaining useful life. There were no impairment charges to acquired intangible assets during the fiscal year ended January 31, 2022. Revenue Recognition We derive our revenue primarily from subscription agreements with customers for access to our unified communications platform and services. We also provide other services, which include professional services, consulting services, and online event hosting, which were immaterial to our consolidated financial statements. Revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration that we expect to receive in exchange for these services. We determine revenue recognition through the following steps: 1. Identification of the contract, or contracts, with the customer We determine a contract with a customer to exist when the contract is approved, each party’s rights regarding the services to be transferred can be identified, the payment terms for the services can be identified, the customer has the ability and intent to pay, and the contract has commercial substance. At contract inception, we will evaluate whether two or more contracts should be combined and accounted for as a single contract and whether the combined or single contract includes more than one performance obligation. We apply judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, credit and financial information pertaining to the customer. 2. Identification of the performance obligations in the contract Performance obligations committed in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the services or products is separately identifiable from other promises in the contract. Promised services or products under which both of these two criteria are not met are recognized as a combined, single performance obligation. Our performance obligations primarily relate to access to our unified communications platform, which consists of one or more software-based services. Our customers do not have the ability to take possession of our software, and through access to our platform, we provide a series of distinct software-based services that are satisfied over the term of the subscription. 3. Determination of the transaction price The transaction price is determined based on the consideration to which we expect to be entitled in exchange for transferring services to the customer. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue recognized under the contract will not occur. None of our contracts contain a significant financing component. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental entities (e.g., sales and other indirect taxes). Our unified communications platform and related services are typically warranted to perform in a professional manner that will comply with the terms of the subscription agreements. In addition, we include service-level commitments to our customers warranting certain levels of uptime reliability and performance and permitting those customers to receive credits in the event that we fail to meet those service levels. These credits represent a form of variable consideration. We have not provided any material refunds related to these agreements in the consolidated financial statements during the periods presented. 4. Allocation of the transaction price to the performance obligations in the contract Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on each performance obligation’s relative standalone selling price. Our contracts with multiple performance obligations are generally sold over the same subscription term and have the same pattern of transfer to the customer, and so they are accounted for as one combined performance obligation in the context of the contract. Accordingly, the transaction price is allocated to this single performance obligation. 5. Recognition of the revenue when, or as, a performance obligation is satisfied Revenue is recognized at the time the related performance obligation is satisfied by transferring the control of the promised service to a customer. Revenue is recognized in an amount that reflects the consideration that we expect to receive in exchange for those services. Fees for access to our unified communications platform and related services are subscription revenue and are considered one performance obligation, and the related revenue is recognized ratably over the subscription period as we satisfy the performance obligation. Professional services are time-based arrangements and revenue is recognized as these services are performed. Fees for services represent less than 2% of total revenue during the periods presented. Cost of Revenue Cost of revenue primarily consists of costs related to hosting our unified communications platform and providing general operating support services to our customers. These costs are composed of co-located data center costs, third-party cloud hosting costs, integrated third-party PSTN services, personnel-related expenses, amortization of capitalized software development costs and acquired intangible assets, royalty payments, and allocated overhead costs. Indirect overhead costs associated with corporate facilities and related depreciation, health care benefits, training, and other employee benefits are allocated to cost of revenue and operating expenses based on applicable headcount. Research and Development Research and development costs include personnel-related expenses associated with our engineering personnel and consultants responsible for the design, development, and testing of our unified communications platform, depreciation of equipment used in research and development, and allocated overhead costs. Research and development costs are expensed as incurred. Advertising Costs Advertising costs are expensed as incurred in sales and marketing expense and amounted to $40.9 million, $34.8 million, and $42.0 million for the fiscal years ended January 31, 2022, 2021, and 2020, respectively. Stock-Based Compensation Stock-based compensation expense related to stock awards (including stock options, restricted stock awards (“RSAs”), RSUs, and ESPP) is measured based on the fair value of the awards granted and recognized as an expense on a straight-line basis over the requisite service period. The fair value of each option and ESPP award is estimated on the grant date using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of highly subjective assumptions, including the fair value of the underlying common stock, the expected term of the award, the expected volatility of the price of our common stock, risk-free interest rates, and the expected dividend yield of our common stock. The fair value of each RSA and RSU award is based on the fair value of the underlying common stock as of the grant date. The assumptions used to determine the fair value of the stock awards represent management’s best estimates. These estimates involve inherent uncertainties and the application of management’s judgment. We account for forfeitures as they occur instead of estimating the number of awards expected to be forfeited. Foreign Currency The functional currency of our foreign subsidiaries is the U.S. dollar. Accordingly, monetary assets and liabilities of our foreign subsidiaries are remeasured into U.S. dollars at the exchange rates in effect at the reporting date, non-monetary assets and liabilities are remeasured at historical rates, and revenue and expenses are remeasured at average exchange rates in effect during each reporting period. Foreign currency related gains and losses have been immaterial during the periods presented. Income Taxes We use the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and the tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets are evaluated for future realization and reduced by a valuation allowance to the extent we believe it is more likely than not that they will not be realized. We consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, carryback potential if permitted under the tax law, and results of recent operations. We record uncertain tax positions in accordance with ASC 740, Income Taxes on the basis of a two-step process in which (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. We consider many factors when evaluating our uncertain tax positions, which involve significant judgment and may require periodic adjustments. The resolution of these uncertain tax positions in a manner inconsistent with management's expectations could have a material impact on our consolidated financial statements. We recognize interest and penalties related to uncertain tax positions as a component of our provision for income taxes. Accrued interest and penalties are included with the related tax liability. Net Income Per Share Attributable to Common Stockholders We calculate our net income per share attributable to Class A and Class B common stock using the two-class method required for companies with participating securities. We consider our convertible preferred stock and unvested common stock, which includes early exercised stock options and RSAs, to be participating securities as holders of such securities have non-forfeitable dividend rights in the event of our declaration of a dividend for shares of common stock. Distributed and undistributed earnings allocated to participating securities are subtracted from net income in determining net income attributable to common stockholders. Basic net income per share is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of our Class A and Class B common stock outstanding. The diluted net income per share attributable to common stockholders is computed by giving effect to all dilutive securities. Diluted net income per share attributable to common stockholders is computed by dividing the resulting net income attributable to common stockholders by the weighted-average number of fully diluted common shares outstanding. Segment Information We operate in one operating segment. Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker, who is our Chief Executive Officer (“CEO”), in deciding how to allocate resources and assessing performance. Our chief operating decision maker allocates resources and assesses performance based upon consolidated financial information. Revenue by geographical region can be found in the revenue recognition disclosures in Note 2 below. The following table presents our property and equipment, net of depreciation and amortization, by geographic region: As of January 31, 2022 2021 (in thousands) Americas $ 180,033 $ 138,093 APAC 36,715 10,033 EMEA 5,606 1,798 Total property and equipment, net $ 222,354 $ 149,924 Recent Accounting Pronouncements Not Yet Adopted In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities in accordance with Accounting Standards Codification Topic 606. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022 and early adoption is permitted. We do not expect the adoption to have a material effect on our consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Jan. 31, 2022 | |
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: Year Ended January 31, 2022 2021 2020 Amount Percentage of Amount Percentage of Amount Percentage of (in thousands, except percentages) Americas $ 2,734,241 67 % $ 1,831,694 69 % $ 500,622 81 % APAC 564,120 13 332,844 13 51,152 8 EMEA 801,503 20 486,830 18 70,884 11 Total $ 4,099,864 100 % $ 2,651,368 100 % $ 622,658 100 % 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 on the consolidated balance sheets was $59.7 million and $24.6 million as of January 31, 2022 and 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 fiscal years ended January 31, 2022, 2021, and 2020 that was included in deferred revenue at the beginning of each period was $858.2 million, $222.0 million, and $119.1 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 January 31, 2022, the aggregate amount of the transaction price allocated to our remaining performance obligations was $2,647.6 million, which consists of both billed consideration in the amount of $1,179.9 million and unbilled consideration in the amount of $1,467.7 million that we expect to recognize as revenue. We expect to recognize 63% of our remaining performance obligations as revenue over the next 12 months and the remainder thereafter. Cost to Obtain a Contract We primarily capitalize sales commissions and associated payroll taxes paid to internal sales personnel that are incremental costs from the acquisition of customer contracts. These costs are recorded as deferred contract acquisition costs in the consolidated balance sheets. We determine whether costs should be deferred based on our sales compensation plans and if the commissions are incremental and would not have occurred absent the customer contract. Sales commissions paid upon the initial acquisition of a customer contract are amortized over an estimated period of benefit of three years, which is typically greater than the contractual terms of the customer contracts. We do not pay sales commissions upon contract renewal. Amortization is recognized on a straight-line basis commensurate with the pattern of revenue recognition. We determine the period of benefit for commissions paid for the acquisition of the initial customer contract by taking into consideration the initial estimated customer life and the technological life of our unified communications platform and related significant features. Amortization of deferred contract acquisition costs is included in sales and marketing expense in the consolidated statements of operations. We periodically review these deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit. There were no impairment losses recorded during the periods presented. The following table represents a rollforward of deferred contract acquisition costs: Year Ended January 31, 2022 2021 (in thousands) Beginning balance $ 293,892 $ 91,130 Additions to deferred contract acquisition costs 247,371 307,068 Amortization of deferred contract acquisition costs (177,283) (104,306) Ending balance $ 363,980 $ 293,892 Deferred contract acquisition costs, current (to be amortized in next 12 months) $ 199,266 $ 136,630 Deferred contract acquisition costs, noncurrent 164,714 157,262 Total deferred contract acquisition costs $ 363,980 $ 293,892 |
Investments
Investments | 12 Months Ended |
Jan. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Marketable Securities As of January 31, 2022 and 2021, our marketable securities consisted of the following: As of January 31, 2022 Amortized Gross Gross Estimated (in thousands) Commercial paper $ 28,723 $ — $ — $ 28,723 Agency bonds 632,935 2 (3,328) 629,609 Corporate and other debt securities 282,124 5 (1,202) 280,927 U.S. government agency securities 3,046,742 28 (19,261) 3,027,509 Treasury bills 389,826 — (148) 389,678 Marketable securities $ 4,380,350 $ 35 $ (23,939) $ 4,356,446 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 fiscal year. There were no material realized gains or losses from available-for-sale securities that were reclassified out of accumulated other comprehensive (loss) income for the fiscal years ended January 31, 2022, 2021, and 2020. The following table presents the contractual maturities of our marketable securities as of January 31, 2022 and 2021: As of January 31, 2022 2021 (in thousands) Less than one year $ 2,387,139 $ 1,017,048 Due in one to five years 1,969,307 987,362 Total $ 4,356,446 $ 2,004,410 Strategic Investments Strategic investments by form and measurement category as of January 31, 2022 were as follows: Measurement Category Fair Value Measurement Alternative Equity Method Total (in thousands) Equity securities $ 168,784 $ 91,399 $ 93,400 $ 353,583 Debt securities 14,231 — — 14,231 Strategic investments $ 183,015 $ 91,399 $ 93,400 $ 367,814 Strategic investments by form and measurement category as of January 31, 2021 were as follows: Measurement Category Fair Value Measurement Alternative Equity Method Total (in thousands) Equity securities $ — $ 13,538 $ — $ 13,538 Debt securities 5,130 — — 5,130 Strategic investments $ 5,130 $ 13,538 $ — $ 18,668 In the second quarter of fiscal year 2022, we made a $75.0 million strategic investment of common shares of a technology company in a private placement concurrent with the investee company’s initial public offering. The shares are subject to a 180-day lock-up agreement. We recorded a gain of $26.3 million related to this investment for the fiscal year ended January 31, 2022. As of January 31, 2022, the fair value of the investment was $101.3 million and our ownership interest represents approximately one percent of the economic interest of the investee’s outstanding capital stock. In the third quarter of fiscal year 2022, we made an additional strategic investment in equity securities of a private company. Based on the terms of these privately-held securities, we determined that we currently do not have a controlling interest but have the ability to exercise significant influence over the operating and financial policies of the investee. Therefore this investment is currently accounted for under the equity method. The fair value of the investment was remeasured immediately before adopting the equity method of accounting, based on the observable price from the most recent financing round. The carrying value of this investment was also adjusted by our share of the equity method investee’s operating result for the respective period, which was immaterial for the fiscal year ended January 31, 2022. As a result, we recognized a total gain of $49.9 million on the existing investment during the third quarter of fiscal year 2022. As of January 31, 2022, the carrying amount of this investment was $93.4 million. In the fourth quarter of fiscal year 2022, we made a $100.0 million strategic investment of common shares of a software company in a private placement concurrent with the investee company’s merger. We recorded a loss of $32.5 million related to this investment for the fiscal year ended January 31, 2022. As of January 31, 2022, the fair value of the investment was $67.5 million and our ownership interest represents approximately two percent of the economic interest of the investee’s outstanding capital stock. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 31, 2022 | |
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 January 31, 2022 Fair Value Level 1 Level 2 Level 3 (in thousands) Financial Assets: Money market funds $ 688,722 $ 688,722 $ — $ — Treasury bills 107,496 — 107,496 — Corporate debt securities 749 — 749 — Cash equivalents 796,967 688,722 108,245 — Commercial paper 28,723 — 28,723 — Agency bonds 629,609 — 629,609 — Corporate and other debt securities 280,927 — 280,927 — U.S. government agency securities 3,027,509 — 3,027,509 — Treasury bills 389,678 — 389,678 — Marketable securities 4,356,446 — 4,356,446 — Certificates of deposit included in other assets, noncurrent 297 — 297 — Publicly held equity securities included in strategic investments 168,784 168,784 — — Privately held debt securities included in strategic investments 14,231 — — 14,231 Total financial assets $ 5,336,725 $ 857,506 $ 4,464,988 $ 14,231 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 — Privately held debt securities included in strategic investments 5,130 — — 5,130 Total financial assets $ 3,588,733 $ 958,357 $ 2,625,246 $ 5,130 |
Business Combinations
Business Combinations | 12 Months Ended |
Jan. 31, 2022 | |
Business Combination and Asset Acquisition [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 unified communications platform by providing end-to-end encryption 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 3.3 years as of January 31, 2022, 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 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 consolidated statements of operations. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Jan. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | Balance Sheet Components Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: As of January 31, 2022 2021 (in thousands) Prepaid expenses 112,666 60,702 Restricted cash from international employee stock sales 10,236 50,475 Other 22,700 5,642 Prepaid expenses and other current assets $ 145,602 $ 116,819 Property and Equipment, Net Property and equipment consisted of the following: As of January 31, 2022 2021 (in thousands) Computer and office equipment $ 224,901 $ 137,445 Software 59,153 36,216 Leasehold improvements 25,340 23,593 Furniture and fixtures 4,565 4,625 Property and equipment, gross 313,959 201,879 Less: accumulated depreciation and amortization (91,605) (51,955) Property and equipment, net $ 222,354 $ 149,924 Depreciation and amortization expense was $47.5 million, $28.4 million, and $16.4 million for the fiscal years ended January 31, 2022, 2021, and 2020, respectively. Other Assets, Noncurrent Other assets, noncurrent consisted of the following: As of January 31, 2022 2021 (in thousands) Accounts receivable, noncurrent $ 55,643 $ 28,008 Prepaid expense, noncurrent 16,120 12,386 Other 34,998 15,372 Other assets, noncurrent $ 106,761 $ 55,766 Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: As of January 31, 2022 2021 (in thousands) Accrued expenses $ 149,658 $ 157,167 Accrued compensation and benefits 126,322 118,640 Income tax liability 56,968 3,426 Sales and other tax liabilities 33,305 27,453 Customer deposit liabilities 20,884 13,050 Operating lease liabilities, current 20,697 15,601 Proceeds from employee equity transactions to be remitted to employees and tax authorities 14,169 54,174 Other 8,412 3,507 Accrued expenses and other current liabilities $ 430,415 $ 393,018 Other Liabilities, Noncurrent Other liabilities, noncurrent consisted of the following: As of January 31, 2022 2021 (in thousands) Sales and other tax liabilities $ 53,916 $ 58,133 Other 14,194 3,501 Other liabilities, noncurrent $ 68,110 $ 61,634 |
Operating Leases
Operating Leases | 12 Months Ended |
Jan. 31, 2022 | |
Leases [Abstract] | |
Operating Leases | Operating Leases We have entered into various operating lease agreements for office space, with remaining contractual periods of up to 8 years. We also enter into equipment operating lease agreements related to our HaaS offering. As a practical expedient, we account for HaaS with customers as a combined performance obligation with the right to access our unified communications platform under ASC 606, Revenue from Contracts with Customers . HaaS was immaterial to our consolidated financial statements. Many of our leases contain one or more options to extend. As leases approach maturity, we consider various factors such as market conditions and the terms of any renewal options that may exist to determine whether we are reasonably certain to exercise the options to extend the lease. Operating lease expense for the fiscal years ended January 31, 2022, 2021 and 2020 was $22.8 million, $14.5 million and $9.7 million , respectively, excluding short-term lease costs, variable lease costs, and sublease income, each of which was immaterial for the fiscal years ended January 31, 2022, 2021 and 2020 . Supplemental balance sheet information related to operating leases was as follows: As of January 31, 2022 2021 (in thousands, except life and percentages) Reported as: Assets: Operating lease right-of-use assets $ 95,965 $ 97,649 Liabilities: Accrued expenses and other current liabilities $ 20,697 $ 15,601 Operating lease liabilities, noncurrent 85,018 90,415 Total operating lease liabilities $ 105,715 $ 106,016 Weighted average remaining lease term 5.1 years 6.1 years Weighted average discount rate 4.0 % 4.5 % Supplemental cash flow and other information related to operating leases was as follows: Year Ended January 31, 2022 2021 2020 (in thousands) Cash payments included in the measurement of our operating lease liabilities $ 22,679 $ 13,717 $ 9,774 Operating lease right-of-use assets recognized in exchange for new operating lease obligations $ 16,784 $ 39,918 $ 34,993 As of January 31, 2022, the future minimum lease payments included in the measurement of our operating lease liabilities are as follows: As of January 31, 2022 (in thousands) Year Ending January 31, 2023 $ 24,491 2024 24,234 2025 23,552 2026 18,467 2027 11,704 Thereafter 15,315 Total operating lease payments $ 117,763 Less: imputed interest (12,048) Total operating lease liabilities $ 105,715 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Non-cancelable Purchase Obligations In the normal course of business, we enter into non-cancelable purchase commitments with various parties to purchase primarily software-based services. As of January 31, 2022, we had outstanding non-cancelable purchase obligations with a term of less than 12 months of $227.2 million and non-cancelable purchase obligations with a term 12 months or longer of $159.4 million. Indemnifications and Contingency Our agreements with certain larger customers include certain provisions for indemnifying customers against liabilities if our services infringe a third party’s intellectual property rights. It is not possible to determine the maximum potential amount under these indemnification obligations due to the limited history of prior indemnification claims and the unique facts and circumstances that may be involved in each particular agreement. To date, we have not incurred any material costs as a result of such provisions and have not accrued any liabilities related to such obligations in our consolidated financial statements. In addition, we have indemnification agreements with our directors and our executive officers that require us, among other things, to indemnify our directors and executive officers for costs associated with any fees, expenses, judgments, fines, and settlement amounts incurred by any of those persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by us, arising out of that person’s services as our director or officer or that person’s services provided to any other company or enterprise at our request. We maintain director and officer insurance coverage that may enable us to recover a portion of any future indemnification amounts paid. To date, there have been no claims under any of our directors’ and executive officers’ indemnification provisions. Sales and Other Tax Liabilities We conduct operations in many tax jurisdictions. In many jurisdictions, non-income-based taxes, such as sales and use tax and other indirect taxes, are assessed on our operations. Although we are diligent in collecting and remitting such taxes, there is uncertainty as to what constitutes sufficient presence for a jurisdiction to levy taxes, fees, and surcharges for sales made over the Internet. As of January 31, 2022 and 2021, we recorded sales and other tax liabilities of $87.2 million and $85.6 million, respectively, of which $33.3 million and $27.5 million are included in accrued expenses and other current liabilities, respectively, and $53.9 million and $58.1 million are included in other liabilities, noncurrent, respectively, in our consolidated balance sheets, based on our best estimate of the probable liability for the loss contingency incurred as of those dates. Our estimate of a probable outcome under the loss contingency is based on analysis of our sales and marketing activities, revenue subject to sales tax, and applicable regulations in applicable jurisdictions in each period. No significant adjustments to the sales and other tax liabilities have been recognized in the accompanying consolidated financial statements for changes to the assumptions underlying the estimate; however, changes in our assumptions may occur in the future as we obtain new information, which can result in adjustments to the recorded liability. Other Contingencies In June 2020 we received a grand jury subpoena from the Department of Justice’s U.S. Attorney’s Office for 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 all of 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 substantial 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 Securities Exchange Act of 1934, 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 filed an opposition to our motion to dismiss on July 9, 2021. Our reply in support of the motion to dismiss was filed on August 9, 2021. On February 16, the court granted in part, and denied in part, our motion to dismiss. 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 the motion to dismiss the securities class action. On October 27, 2021, a third substantially identical lawsuit was filed in the same court against the same defendants, seeking unspecified monetary damages and governance reforms. On November 17, 2021, all three derivative lawsuits were consolidated and stayed pending resolution of the 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 were 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”). 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 July 30, 2021, we entered into a settlement agreement with plaintiffs to settle the action on a classwide basis, and plaintiffs filed a motion for preliminary approval of the settlement with the court on July 31, 2021. On October 21, 2021, the court preliminarily approved the settlement. Under the terms of the settlement, we have paid $85.0 million into an escrow account that will be used to pay claims filed by settlement class members, attorneys’ fees and expenses, administrative costs, and service payments to plaintiffs. The Court has scheduled a final approval hearing to take place on April 7, 2022. 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 consolidated statement of operations for the fiscal year ended January 31, 2022. On January 19, 2021, we finalized a settlement agreement with the FTC which requires us 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 are cooperating with the FTC’s requirements and working to ensure compliance. In addition, from time to time, we are involved in various other legal proceedings arising from the normal course of business activities. We are not presently a party to any other such litigation the outcome of which, we believe, if determined adversely to us, would individually, or taken together, have a material adverse effect on our business, operating results, cash flows, or financial condition. Defending such proceedings is costly and can impose a significant burden on management and employees. We may receive unfavorable preliminary or interim rulings in the course of litigation, and there can be no assurances that favorable final outcomes will be obtained. |
Stockholders' Equity and Equity
Stockholders' Equity and Equity Incentive Plans | 12 Months Ended |
Jan. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity and Equity Incentive Plans | Stockholders’ Equity and Equity Incentive Plans Convertible Preferred Stock Upon completion of the IPO in April 2019, all shares of convertible preferred stock outstanding, totaling 152,665,804 shares, were automatically converted into an equivalent number of shares of Class B common stock on a one-to-one basis and their carrying value of $159.6 million was reclassified into stockholders’ equity. As of January 31, 2022 and 2021, there were no shares of convertible preferred stock issued and outstanding. In connection with the IPO, our amended and restated certificate of incorporation became effective, which authorized the issuance of 200,000,000 shares of undesignated preferred stock with a par value of $0.001 with rights and preferences, including voting rights, designated from time to time by our board of directors. Dual-Class Common Stock Structure In November 2018, we implemented a dual class common stock structure pursuant to which all the then-outstanding shares of our common stock were reclassified as Class B common stock and a new class of Class A common stock was authorized. The Class A common stock is entitled to one vote per share and the Class B common stock is entitled to 10 votes per share. The Class A and Class B common stock have the same dividend and liquidation rights. Each share of Class B common stock will automatically convert into one share of Class A common stock upon (a) any transfer of such share, except for certain permitted transfers described in our amended and restated certificate of incorporation and (b) the death of the holder of such share. In addition, each share of Class B common stock will be automatically converted into one share of Class A common stock upon the earliest of (a) the date that is six months following the death or incapacity of Eric S. Yuan (our CEO), (b) the date that is six months following the date that Mr. Yuan is no longer providing services to us or his employment is terminated for cause, (c) the date specified by the holders of a majority of the then-outstanding shares of convertible preferred stock, voting together on an as-converted basis, and the holders of a majority of the then-outstanding shares of Class B common stock, voting as a separate class, and (d) the 15-year anniversary of the closing of our IPO. In connection with the implementation of the dual-class common stock structure, each then-outstanding share of our convertible preferred stock became convertible into one share of Class B common stock, and all outstanding options to purchase shares of common stock became options to purchase an equivalent number of shares of Class B common stock. Upon the effectiveness of the amended and restated certificate of incorporation in November 2018, the number of shares of common stock that is authorized to be issued consisted of 320,000,000 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 collectively referred to as “common stock” throughout the notes to the consolidated financial statements, unless otherwise noted. Equity Financing On April 23, 2019, we completed our IPO, in which we issued and sold 9,911,434 shares of our Class A common stock at $36.00 per share. On April 18, 2019, the underwriters exercised their option to purchase an additional 3,130,435 shares of our Class A common stock at $36.00 per share. We received aggregate proceeds of $447.9 million, net of underwriters’ discounts and commissions. In connection with the IPO: • all of the shares of convertible preferred stock outstanding automatically converted into an aggregate of 152,665,804 shares of Class B common stock; • outstanding convertible promissory notes and accrued interest automatically converted into 426,223 shares of Class A common stock based on the IPO price of $36.00 per share; and • Salesforce Ventures LLC purchased 2,777,777 shares of Class A common stock from us at $36.00 per share in a concurrent private placement. We received aggregate proceeds of $100.0 million and did not pay any underwriting discounts or commissions with respect to the shares of Class A common stock that were sold in this private placement. Deferred offering costs consist primarily of accounting, legal, and other fees related to our IPO. Prior to the IPO, all deferred offering costs were capitalized in other assets, noncurrent in the consolidated balance sheets. After the IPO, $6.4 million of deferred offering costs were reclassified into stockholders’ equity (deficit) as a reduction of the IPO proceeds in the consolidated balance sheets. We capitalized $2.4 million of deferred offering costs within other assets, noncurrent in the consolidated balance sheet as of January 31, 2019, which were reclassified into additional paid-in capital upon the completion of the IPO. On January 15, 2021, we completed our follow-on public offering, in which we issued and sold 5,882,353 shares of our Class A common stock, including 735,294 shares pursuant to the full exercise of the underwriter's option to purchase additional shares, at $340.00 per share. We received aggregate proceeds of $1,980.0 million, net of underwriters’ discounts and commissions. The other related offering costs were immaterial. Common Stock Upon the completion of the IPO in April 2019, our amended and restated certificate of incorporation became effective, which also 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. We have the following shares of Class A common stock reserved for future issuance: As of January 31, 2022 2021 Stock options outstanding 6,195,205 9,239,504 RSUs outstanding 5,546,366 4,510,730 ESPP purchase rights outstanding 1,784,687 724,883 Remaining shares available for future issuance under the 2011 and 2019 plan 56,620,720 44,584,783 Remaining shares available for future issuance under the ESPP 10,685,867 9,648,574 Total shares of Class A common stock reserved 80,832,845 68,708,474 Equity Incentive Plans In 2011, we adopted the 2011 Global Share Plan (“2011 Plan”), under which officers, employees, and consultants were granted various forms of equity incentive compensation at the discretion of the board of directors, including stock options and restricted stock awards. In connection with the IPO, the shares of Class B common stock remaining available for issuance under the 2011 Plan became available for issuance for a corresponding number of shares of our Class A common stock under the 2019 Equity Incentive Plan (“2019 Plan”), which is a successor to and continuation of our 2011 Plan. In April 2019, we adopted the 2019 Plan, which became effective in connection with our IPO. Our 2019 Plan provides for the grant of stock options, stock appreciation rights, RSAs, RSU awards, performance awards, and other forms of awards. The awards generally vest over four years. The plan administrator determines the term of stock options granted under the 2019 Plan, up to a maximum of 10 years. The maximum number of shares of our Class A common stock that may be issued under our 2019 Plan will not exceed 58,300,889 shares of our Class A common stock, which is the sum of (1) 34,000,000 new shares, plus (2) an additional number of shares not to exceed 24,300,889, consisting of (A) shares that remain available for the issuance of awards under our 2011 Plan as of immediately prior to the time our 2019 Plan becomes effective and (B) shares of Class B common stock subject to outstanding stock options or other stock awards granted under our 2011 Plan that, on or after the 2019 Plan became effective, terminate, or expire prior to exercise or settlement; are not issued because the award is settled in cash; are forfeited because of the failure to vest; or are reacquired or withheld (or not issued) to satisfy a tax withholding obligation or the purchase or exercise price, if any, as such shares become available from time to time. In addition, the number of shares of our Class A common stock reserved for issuance under our 2019 Plan automatically increases on February 1 of each calendar year, starting on February 1, 2020 through February 1, 2029, in an amount equal to (i) 5% of the total number of shares of our common stock (both Class A and Class B) outstanding on January 31 of the fiscal year before the date of each automatic increase or (ii) a lesser number of shares determined by our board of directors prior to the applicable February 1. 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) Outstanding as of January 31, 2021 9,239,504 $ 7.17 7.0 $ 3,371,457 Exercised (2,881,485) $ 5.00 $ 842,989 Canceled/forfeited/expired (162,814) $ 11.24 Outstanding as of January 31, 2022 6,195,205 $ 8.08 6.0 $ 905,744 Vested and expected to vest as of January 31, 2022 6,195,205 $ 8.08 6.0 $ 905,744 Exercisable as of January 31, 2022 4,898,249 $ 5.72 5.9 $ 727,701 There were no options granted for the fiscal years ended January 31, 2022 and 2021. The weighted-average grant date fair value of options granted to employees during the fiscal year ended January 31, 2020 was $25.17. The intrinsic value of the options exercised, which represents the difference between the fair market value of our common stock on the date of exercise and the exercise price of each option, was $843.0 million, $1,786.7 million, and $767.3 million during the fiscal years ended January 31, 2022, 2021, and 2020, respectively. As of January 31, 2022, unrecognized stock-based compensation expense related to outstanding unvested stock options was $19.7 million, which is expected to be recognized over a weighted-average period of 0.8 years. The Black-Scholes assumptions used to value the employee options at the grant dates are as follows: Year Ended January 31, 2020 Expected term (years) 5.0 - 6.1 Expected volatility 49.9% - 53.2% Risk-free interest rate 1.6% - 2.5% Expected dividend yield — These assumptions and estimates were determined as follows: • Fair Value of Common Stock. Prior to our IPO, the fair value was determined by our board of directors, with input from management and valuation reports prepared by third-party valuation specialists. Stock-based compensation for financial reporting purposes is measured based on updated estimates of fair value when appropriate, such as when additional relevant information related to the estimate becomes available in a valuation report issued as of a subsequent date. After our initial public offering, the fair value of each share of underlying common stock was based on the closing price of our Class A common stock as reported on the date of the grant. • Risk-Free Interest Rate. The risk-free interest rate for the expected term of the options was based on the U.S. Treasury yield curve in effect at the time of the grant. • Expected Term. The expected term of options represents the period of time that options are expected to be outstanding. Our historical stock option exercise experience does not provide a reasonable basis upon which to estimate an expected term due to a lack of sufficient data. For stock options granted to employees, we estimate the expected term by using the simplified method. The simplified method calculates the expected term as the average of the time-to-vesting and the contractual life of the stock options. For stock options granted to nonemployees, the expected term equals the contractual term of the stock option. • Expected Volatility. As we have a short trading history for our common stock, the expected volatility was estimated by taking the average historic price volatility for industry peers, consisting of several public companies in our industry that are similar in size, stage of life cycle, or financial leverage, over a period equivalent to the expected term of the awards. • Expected Dividend Yield. We have never declared or paid any cash dividends and do not presently plan to pay cash dividends in the foreseeable future. As a result, an expected dividend yield of zero percent was used. Restricted Stock Units A summary of RSU activity under our equity incentive plan and related information is as follows: RSUs Unvested Weighted-Average Unvested as of January 31, 2021 4,510,730 $ 194.57 Granted 3,195,949 $ 265.12 Vested (1,768,702) $ 190.36 Canceled/forfeited (391,611) $ 250.92 Unvested as of January 31, 2022 5,546,366 $ 232.58 In October 2021, we added a feature to new and existing stock awards that provides employees with additional awards based on certain stock price criteria. The value of the modified RSUs began to be recognized as compensation expense in the fiscal year ended January 31, 2022 and will continue to be recognized through the remaining requisite service period for the RSUs. This had an immaterial impact on our consolidated statement of operations for the fiscal year ended January 31, 2022. As of January 31, 2022, unrecognized stock-based compensation expense related to outstanding unvested RSUs was $1,437.2 million, including the impact of the modification, which is expected to be recognized over a weighted-average period of 2.8 years. 2019 Employee Stock Purchase Plan In April 2019, we adopted the 2019 ESPP, which became effective in connection with the IPO. A total of 9,000,000 shares of our Class A common stock were initially reserved for issuance under the ESPP. The number of shares of our Class A common stock reserved for issuance automatically increases on February 1 of each calendar year, beginning on February 1, 2020 through February 1, 2029, by the lesser of (1) 1% of the total number of shares of our common stock (both Class A and Class B) outstanding on the last day of the fiscal year before the date of the automatic increase, and (2) 7,500,000 shares; provided that before the date of any such increase, our board of directors may determine that such increase will be less than the amount set forth in clauses (1) and (2). Under our current ESPP, Class A common stock will be purchased for the accounts of employees participating in the ESPP at a price per share equal to the lesser of (1) 85% of the fair market value of a share of our Class A common stock on the first date of an offering or (2) 85% of the fair market value of a share of our Class A common stock on the date of purchase. No employee may purchase shares under the ESPP at a rate in excess of $25,000 worth of our Class A common stock based on the fair market value per share of our Class A common stock at the beginning of an offering for each calendar year such purchase right is outstanding or 3,000 shares. The 2019 ESPP provides for, at maximum, 27 months offering periods with four offering dates, generally in June and December of each year. The first offering period began on April 18, 2019. During the fiscal years ended January 31, 2022, 2021, and 2020, 838,395, 923,553, and 490,268 shares, respectively, of our Class A common stock were purchased under the ESPP. As of January 31, 2022, unrecognized stock-based compensation expense related to the ESPP was $65.3 million, which is expected to be recognized over a weighted-average period of 1.6 years. We estimated the fair value of ESPP purchase rights using a Black-Scholes option-pricing model with the following assumptions: Year Ended January 31, 2022 2021 Expected term (years) 0.5 - 2.1 0.5 - 2.1 Expected volatility 40.3% - 75.0% 40.3% - 75.0% Risk-free interest rate 0.0% - 2.5% 0.1% - 2.5% Expected dividend yield — — The stock-based compensation expense by line item in the accompanying consolidated statements of operations is summarized as follows: Year Ended January 31, 2022 2021 2020 (in thousands) Cost of revenue $ 69,612 $ 34,960 $ 7,860 Research and development 113,000 50,161 11,645 Sales and marketing 229,297 146,377 41,465 General and administrative 65,378 44,320 12,139 Total stock-based compensation expense 477,287 275,818 73,109 Benefit from income taxes (84,245) — — Total stock-based compensation expense recorded to net income $ 393,042 $ 275,818 $ 73,109 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of the net income before the (benefit from) provision for income taxes were as follows: Year Ended January 31, 2022 2021 2020 (in thousands) Domestic $ 1,047,318 $ 663,909 $ 16,268 Foreign 54,314 14,125 10,094 Total $ 1,101,632 $ 678,034 $ 26,362 The (benefit from) provision for income taxes was as follows: Year Ended January 31, 2022 2021 2020 (in thousands) Current: Federal $ 69,853 $ — $ — State 20,174 1,023 14 Foreign 12,027 3,933 2,226 Total current income tax expense 102,054 4,956 2,240 Deferred: Federal (293,704) 689 — State (82,561) 248 — Foreign 204 (175) (1,183) Total deferred income tax expense (376,061) 762 (1,183) Total (benefit from) provision for income taxes $ (274,007) $ 5,718 $ 1,057 The (benefit from) provision for income taxes differs from the amount computed by applying the statutory federal tax rate as follows: Year Ended January 31, 2022 2021 2020 (in thousands, except percentages) Tax at federal statutory rate $ 231,350 $ 142,387 $ 5,536 State taxes 24,840 636 14 Foreign rate differential 1,830 89 (2,096) Stock-based compensation (135,250) (302,362) (32,070) Foreign-derived intangible income deduction (34,131) — — Permanent items 3,971 2,228 1,009 Research and development credits (42,973) (3,170) (2,808) Tax uncertainties 244 (607) 1,019 Change in valuation allowance (322,231) 165,869 30,932 Other (1,658) 648 (479) Total $ (274,007) $ 5,718 $ 1,057 Effective tax rate (24.9) % 0.8 % 4.0 % Deferred income taxes result from differences in the recognition of amounts for tax and financial reporting purposes, as well as operating loss and tax credit carryforwards. Significant components of our deferred income tax assets as of January 31, 2022 and 2021 are as follows: As of January 31, 2022 2021 (in thousands) Deferred tax assets: Net operating loss carryforwards $ 21,558 $ 341,487 Research and development credit carryforwards 9,985 12,191 Stock-based compensation 44,490 37,255 Accruals and reserves 14,475 29,195 Deferred revenue 260,322 6,565 Capitalized research expenditures 131,010 — Operating lease liabilities 25,892 27,842 Total deferred tax assets 507,732 454,535 Valuation allowance (12,605) (335,051) Total deferred tax assets net of valuation allowance 495,127 119,484 Deferred tax liabilities: Property and equipment and intangible assets (26,733) (17,229) Deferred contract acquisition costs (62,814) (76,593) Operating right-of-use assets (23,466) (25,550) Total deferred tax liabilities (113,013) (119,372) Net deferred tax assets $ 382,114 $ 112 We review the likelihood that we will realize the benefit of our deferred tax assets and, therefore, the need for a valuation allowance on a quarterly basis. We have maintained a valuation allowance on all our U.S. and U.K. net deferred tax assets since our inception as it was determined that it was more likely than not that we would not recognize the benefits of these assets. We continued to record a valuation allowance through the first nine months of fiscal 2022. In the fourth quarter of fiscal 2022, management concluded that the valuation allowance related to the U.S. federal and state deferred tax assets was no longer needed primarily due to its assessment of income/loss in recent periods and the forecast of future taxable income. As of January 31, 2022, based on evaluation of all positive and negative evidence, management believes it is more likely than not that the net deferred tax assets will be realized for U.S. federal and state purposes. Accordingly, management has recognized a non-recurring tax benefit of $328.0 million related to the valuation allowance reversal. As of January 31, 2022, we continued to maintain a valuation allowance of $12.6 million related to net deferred tax assets of our U.K. subsidiary and will maintain this valuation allowance until there is sufficient evidence to support the reversal of all or a portion of the valuation allowance. As of January 31, 2022, we had net operating loss carryforwards of approximately $122.3 million for state income tax purposes, which will begin to expire in the year 2033 if unused. We also had certain foreign net operating loss carryforwards of $44.2 million, which have an indefinite life. As of January 31, 2022, we also had research and development credit carryforwards of approximately $18.4 million for state income tax purposes. The state research and development tax credits carry forward indefinitely. The state net operating loss carryforwards may be subject to significant limitations under Section 382 and Section 383 of the Internal Revenue Code of 1986 and similar provisions under state law. Such provisions limit the net operating loss carryforwards that may be used in any given year in the event of special occurrences, including significant ownership changes. We have completed a Section 382 review and determined that none of our operating losses will expire solely due to Section 382 limitation(s). We indefinitely reinvest earnings from our foreign subsidiaries and therefore no deferred tax liability has been recognized on the basis difference created by such earnings. We have not provided foreign withholding taxes for any undistributed earnings of our foreign subsidiaries. A reconciliation of the beginning and ending balance of total unrecognized tax benefits is as follows: Unrecognized Tax Benefits (in thousands) Year Ended January 31, 2022 2021 2020 Balance, beginning of year $ 14,884 $ 8,106 $ 2,778 Tax Positions taken in prior year: Gross increases — 314 — Gross decreases (3,764) — — Tax Positions taken in current year: Gross increases 8,211 6,001 5,328 Gross decreases — — — Lapse of Statute of Limitations (160) (422) — Acquisitions — 885 — Balance, end of year $ 19,171 $ 14,884 $ 8,106 As of January 31, 2022, gross unrecognized tax benefits related to uncertain tax positions were $19.2 million ($19.6 million total, including $0.4 million associated with interest and penalties). As of January 31, 2021, gross unrecognized tax benefits related to uncertain tax positions were $14.9 million ($15.0 million total, including $0.1 million associated with interest and penalties). As of January 31, 2020, gross unrecognized tax benefits related to uncertain tax positions were $8.1 million ($8.4 million total, including $0.3 million associated with interest and penalties). We recognized approximately $0.4 million, $0.1 million, and $0.3 million in potential interest and penalties associated with uncertain tax positions during fiscal years ended January 31, 2022, 2021, and 2020, respectively. To the extent taxes are not assessed with respect to uncertain tax positions, substantially all amounts accrued (including interest and penalties) will be reduced and reflected as a reduction of the overall income tax provision. Unrecognized tax benefits and associated accrued interest and penalties are included in our income tax provision. We file income tax returns in the U.S. federal jurisdiction, various state jurisdictions, and various foreign jurisdictions. As of January 31, 2022, all of the years remain open to examination by the federal and state tax authorities, for three or four years from the tax year in which net operating losses or tax credits are utilized. We believe that an adequate provision has been made for any adjustments that may result from tax examinations. Although the timing of the resolution, settlement, and closure of audits is not certain, we do not believe it is reasonably possible that our unrecognized tax benefits will materially change in the next 12 months. On March 11, 2021, the American Rescue Plan Act of 2021 (“American Rescue Plan Act”) was passed into law 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 fiscal year ended January 31, 2022. |
Net Income Per Share Attributab
Net Income Per Share Attributable to Common Stockholders | 12 Months Ended |
Jan. 31, 2022 | |
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: Year Ended January 31, 2022 2021 2020 Class A Class B Class A Class B Class A Class B Numerator: (in thousands, except share and per share data) Net income $ 1,105,368 $ 270,271 $ 432,968 $ 239,348 $ 5,450 $ 19,855 Less: undistributed earnings attributable to participating securities — (582) — (789) — (3,555) Net income attributable to common stockholders, basic $ 1,105,368 $ 269,689 $ 432,968 $ 238,559 $ 5,450 $ 16,300 Reallocation of net income attributable to common stockholders (23,891) 23,891 (14,321) 14,321 (439) 439 Net income attributable to common stockholders, diluted $ 1,081,477 $ 293,580 $ 418,647 $ 252,880 $ 5,011 $ 16,739 Denominator: Weighted-average shares used in computing net income per share attributable to common stockholders, basic 238,214,936 58,119,958 183,015,245 100,838,409 58,541,269 175,100,067 Weighted-average shares used in computing net income per share attributable to common stockholders, diluted 240,531,470 65,295,035 185,860,412 112,267,257 58,583,874 195,714,140 Net income per share attributable to common stockholders, basic $ 4.64 $ 4.64 $ 2.37 $ 2.37 $ 0.09 $ 0.09 Net income per share attributable to common stockholders, diluted $ 4.50 $ 4.50 $ 2.25 $ 2.25 $ 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: Year Ended January 31, 2022 2021 2020 Class A Class B Class A Class B Class A Class B Outstanding stock options — — 51,444 — 141,782 — Unvested RSUs 1,015,860 — 98,941 — 606,971 — Purchase rights committed under the ESPP 241,107 — 14,951 — 1,180,664 — Total 1,256,967 — 165,336 — 1,929,417 — |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jan. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events We have evaluated subsequent events from the balance sheet date through March 7, 2022, the date at which the consolidated financial statements were available to be issued. In February 2022, our Board of Directors authorized a stock repurchase program of up to $1.0 billion of our Class A common stock, which expires in February 2024. Repurchases of our Class A common stock may be effected from time to time, either on the open market (including pre-set trading plans), in privately negotiated transactions, and other transactions in accordance with applicable securities laws. The timing and the amount of any repurchased Class A common stock will be determined by our management based on its evaluation of market conditions and other factors, and the repurchase program will be funded using our working capital. The program may be modified, suspended or discontinued at any time. As of March 6, 2022, $997.1 million of the repurchase authorization remained available. |
Schedule II_ Valuation and Qual
Schedule II: Valuation and Qualifying Accounts | 12 Months Ended |
Jan. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II: Valuation and Qualifying Accounts | Schedule II: Valuation and Qualifying Accounts The table below details the activity of the accounts receivable allowances and deferred tax asset valuation allowance for the fiscal years ended January 31, 2022, 2021, and 2020: Balance at Additions Write-offs or Deductions Balance at (in thousands) Year ended January 31, 2022 Accounts receivable allowances $ 36,844 $ 50,467 $ (62,615) $ 24,696 Deferred tax asset valuation allowance $ 335,051 $ 5,511 $ (327,957) $ 12,605 Year ended January 31, 2021 Accounts receivable allowances $ 7,634 $ 47,405 $ (18,195) $ 36,844 Deferred tax asset valuation allowance $ 36,353 $ 298,698 $ — $ 335,051 Year ended January 31, 2020 Accounts receivable allowances $ 2,071 $ 8,583 $ (3,020) $ 7,634 Deferred tax asset valuation allowance $ 877 $ 35,476 $ — $ 36,353 All other financial statement schedules have been omitted, since the required information is not applicable or is not present in amounts sufficient to require submission of the schedule, or because the information required is included in the consolidated financial statements and notes thereto included in this Form 10-K. |
Summary of Business and Signi_2
Summary of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) 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 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 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 materially 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, the availability and distribution of vaccines, and their impact on our customers and our sales cycles. During the fiscal years ended January 31, 2022 and 2021, 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. |
Concentration of Risks | Concentration of Risks Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, restricted cash, and accounts receivable. We maintain our cash, cash equivalents, marketable securities, and restricted cash with high-quality financial institutions with investment-grade ratings. A majority of the cash balances are with U.S. banks and are insured to the extent defined by the Federal Deposit Insurance Corporation. |
Cash and Cash Equivalents and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents consist of cash in banks and highly liquid investments, primarily money market funds, purchased with an original maturity of three months or less. Restricted cash consists of certificates of deposit collateralizing our operating leases and cash from proceeds from international employees’ sales of our common stock, and is included in prepaid expenses and other current assets and other assets, noncurrent in the consolidated balance sheets. As of January 31, 2022 and 2021, we had $10.2 million and $50.5 million, respectively, of cash from proceeds from international employees’ sales of our common stock. The amount is held in our bank account until it is remitted to the employees and the tax authorities. Due to the restrictions on the use of the funds in the bank account, we have classified the |
Allowance for Credit Losses | Allowance for Credit Losses We are exposed to credit losses primarily through our accounts receivable and investments in available-for-sale debt securities. See Note 3 for additional information related to our available-for-sale debt securities. |
Available-for-sale Investments | Available-for-sale Investments Available-for-sale investments consist primarily of high-grade commercial paper, agency bonds, corporate bonds, corporate and other debt securities, U.S. government agency securities, and treasury bills. We classify our marketable securities as available-for-sale at the time of purchase and reevaluate such classification at each balance sheet date. We may sell these securities at any time for use in current operations even if they have not yet reached maturity. As a result, we classify our securities, including those with maturities beyond 12 months, as current assets in the consolidated balance sheets. We carry these securities at fair value and record unrealized gains and losses in accumulated other comprehensive (loss) income, which is reflected as a component of stockholders’ equity. We evaluate our securities with unrealized loss positions as to whether the declines in fair value were due to credit losses, and record the portion of impairment relating to the credit losses through allowance for credit losses limited to the amount that fair value was less than the amortized cost basis. Realized gains and losses from the sale of marketable securities are determined based on the specific identification method. Realized gains and losses are reported in other (expense) income, net in the consolidated statements of operations. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the exchange price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We measure financial assets and liabilities at fair value at each reporting period using a fair value hierarchy, which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Financial instruments consist of cash equivalents, restricted cash, marketable securities, accounts receivable, and accounts payable. Cash equivalents, restricted cash, and marketable securities are stated at fair value on a recurring basis. Accounts receivable and accounts payable are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment date. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net, are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the respective assets, determined to be three |
Software Development Costs | Software Development Costs We capitalize certain development costs related to our unified communications platform during the application development stage as long as it is probable the project will be completed, and the software will be used to perform the function intended. Capitalized software development costs are recorded as part of property and equipment, net. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. Capitalized software development costs are amortized on a straight-line basis over the software’s estimated useful life, which is generally three years, and are recorded in cost of revenue in the consolidated statements of operations. We evaluate the useful lives of these assets on an annual basis and test for impairment whenever events or changes in circumstances occur that could impact the recoverability of |
Leases | Leases All lease arrangements are generally recognized at lease commencement. Operating lease right-of-use (“ROU”) assets and operating lease liabilities are recognized at commencement. For short-term leases (an initial term of 12 months or less), an ROU asset and corresponding lease liability are not recorded and we record rent expense in our consolidated statements of operations on a straight-line basis over the lease term and record variable lease payments as incurred. ROU assets represent our right to use an underlying asset during the reasonably certain lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of fixed payments not yet paid over the lease term. We use our incremental borrowing rate based on the information available at the commencement date in determining the lease liabilities as our leases generally do not provide an implicit rate. Our incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, in an economic environment where the leased asset is located. ROU assets also include any initial direct costs incurred and any lease payments made at or before the lease commencement date, less lease incentives received. We reassess the lease term if and when a significant event or change in circumstances occurs within our control. We currently do not have any finance leases. |
Impairment of Long-Lived Assets | Impairment of Long-Lived AssetsWe evaluate long-lived assets or asset groups for impairment whenever events indicate that the carrying value of an asset or asset group may not be recoverable based on expected future cash flows attributable to that asset or asset group. Recoverability of assets held and used is measured by comparing the carrying amount of an asset or an asset group to estimated undiscounted future net cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset or asset group exceeds estimated undiscounted future cash flows, then an impairment charge would be recognized based on the excess of the carrying amount of the asset or asset group over its fair value. Assets to be disposed of are reported at the lower of their carrying amount or fair value, less costs to sell. |
Business Combinations | Business Combinations We account for our business combinations using the acquisition method of accounting, which requires, among other things, allocation of the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed at their estimated fair values on the acquisition date. The excess of the fair value of purchase consideration over the values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair value of assets acquired and liabilities assumed, we make estimates and assumptions, especially with respect to intangible assets. Our estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, not to exceed one year from the date of acquisition, we may record adjustments to the assets acquired and liabilities assumed, with a corresponding offset to goodwill if new information is obtained related to facts and circumstances that existed as of the acquisition date. After the measurement period, any subsequent adjustments are reflected in the consolidated statements of operations. Acquisition costs, such as legal and consulting fees, are expensed as incurred. Uncertain tax positions and tax-related valuation allowances are initially established in connection with a business combination as of the acquisition date. We continue to collect information and reevaluate these estimates and assumptions quarterly. We will record any adjustments to our preliminary estimates to goodwill, provided that it is within the one-year measurement period. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill amounts are not amortized, but rather tested for impairment at least annually or more often if circumstances indicate that the carrying value may not be recoverable. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. We have one reporting unit and as a result, goodwill has been assigned to the single reporting unit. We conducted our annual impairment test of goodwill in the fourth quarter of fiscal year 2022 and determined that no adjustment to the carrying value of goodwill was required. Intangible assets consist of acquired identifiable intangible assets resulting from business combinations, as well as other intangible assets purchased outside of a business combination, such as domains and intellectual property addresses. Finite-lived intangible assets are initially recorded at fair value and are amortized on a straight-line basis over their estimated useful lives. Amortization expense of developed technology is recorded within cost of revenue in the consolidated statements of operations. |
Revenue Recognition | Revenue Recognition We derive our revenue primarily from subscription agreements with customers for access to our unified communications platform and services. We also provide other services, which include professional services, consulting services, and online event hosting, which were immaterial to our consolidated financial statements. Revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration that we expect to receive in exchange for these services. We determine revenue recognition through the following steps: 1. Identification of the contract, or contracts, with the customer We determine a contract with a customer to exist when the contract is approved, each party’s rights regarding the services to be transferred can be identified, the payment terms for the services can be identified, the customer has the ability and intent to pay, and the contract has commercial substance. At contract inception, we will evaluate whether two or more contracts should be combined and accounted for as a single contract and whether the combined or single contract includes more than one performance obligation. We apply judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, credit and financial information pertaining to the customer. 2. Identification of the performance obligations in the contract Performance obligations committed in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the services or products is separately identifiable from other promises in the contract. Promised services or products under which both of these two criteria are not met are recognized as a combined, single performance obligation. Our performance obligations primarily relate to access to our unified communications platform, which consists of one or more software-based services. Our customers do not have the ability to take possession of our software, and through access to our platform, we provide a series of distinct software-based services that are satisfied over the term of the subscription. 3. Determination of the transaction price The transaction price is determined based on the consideration to which we expect to be entitled in exchange for transferring services to the customer. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue recognized under the contract will not occur. None of our contracts contain a significant financing component. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental entities (e.g., sales and other indirect taxes). Our unified communications platform and related services are typically warranted to perform in a professional manner that will comply with the terms of the subscription agreements. In addition, we include service-level commitments to our customers warranting certain levels of uptime reliability and performance and permitting those customers to receive credits in the event that we fail to meet those service levels. These credits represent a form of variable consideration. We have not provided any material refunds related to these agreements in the consolidated financial statements during the periods presented. 4. Allocation of the transaction price to the performance obligations in the contract Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on each performance obligation’s relative standalone selling price. Our contracts with multiple performance obligations are generally sold over the same subscription term and have the same pattern of transfer to the customer, and so they are accounted for as one combined performance obligation in the context of the contract. Accordingly, the transaction price is allocated to this single performance obligation. 5. Recognition of the revenue when, or as, a performance obligation is satisfied Revenue is recognized at the time the related performance obligation is satisfied by transferring the control of the promised service to a customer. Revenue is recognized in an amount that reflects the consideration that we expect to receive in exchange for those services. Fees for access to our unified communications platform and related services are subscription revenue and are considered one performance obligation, and the related revenue is recognized ratably over the subscription period as we satisfy the performance obligation. Professional services are time-based arrangements and revenue is recognized as these services are performed. Fees for services represent less than 2% of total revenue during the periods presented. |
Cost of Revenue | Cost of Revenue Cost of revenue primarily consists of costs related to hosting our unified communications platform and providing general operating support services to our customers. These costs are composed of co-located data center costs, third-party cloud hosting costs, integrated third-party PSTN services, personnel-related expenses, amortization of capitalized software development costs and acquired intangible assets, royalty payments, and allocated overhead costs. Indirect overhead costs associated with corporate facilities and related depreciation, health care benefits, training, and other employee benefits are allocated to cost of revenue and operating expenses based on applicable headcount. |
Research and Development | Research and Development Research and development costs include personnel-related expenses associated with our engineering personnel and consultants responsible for the design, development, and testing of our unified communications platform, depreciation of equipment used in research and development, and allocated overhead costs. Research and development costs are expensed as incurred. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred in sales and marketing expense and amounted to $40.9 million, $34.8 million, and $42.0 million for the fiscal years ended January 31, 2022, 2021, and 2020, respectively. |
Share-Based Compensation | Stock-Based Compensation Stock-based compensation expense related to stock awards (including stock options, restricted stock awards (“RSAs”), RSUs, and ESPP) is measured based on the fair value of the awards granted and recognized as an expense on a straight-line basis over the requisite service period. The fair value of each option and ESPP award is estimated on the grant date using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of highly subjective assumptions, including the fair value of the underlying common stock, the expected term of the award, the expected volatility of the price of our common stock, risk-free interest rates, and the expected dividend yield of our common stock. The fair value of each RSA and RSU award is based on the fair value of the underlying common stock as of the grant date. The assumptions used to determine the fair value of the stock awards represent management’s best estimates. These estimates involve inherent uncertainties and the application of management’s judgment. We account for forfeitures as they occur instead of estimating the number of awards expected to be forfeited. |
Foreign Currency | Foreign Currency The functional currency of our foreign subsidiaries is the U.S. dollar. Accordingly, monetary assets and liabilities of our foreign subsidiaries are remeasured into U.S. dollars at the exchange rates in effect at the reporting date, non-monetary assets and liabilities are remeasured at historical rates, and revenue and expenses are remeasured at average exchange rates in effect during each reporting period. Foreign currency related gains and losses have been immaterial during the periods presented. |
Income Taxes | Income Taxes We use the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and the tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets are evaluated for future realization and reduced by a valuation allowance to the extent we believe it is more likely than not that they will not be realized. We consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, carryback potential if permitted under the tax law, and results of recent operations. We record uncertain tax positions in accordance with ASC 740, Income Taxes on the basis of a two-step process in which (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. We consider many factors when evaluating our uncertain tax positions, which involve significant judgment and may require periodic adjustments. The resolution of these uncertain tax positions in a manner inconsistent with management's expectations could have a material impact on our consolidated financial statements. We recognize interest and penalties related to uncertain tax positions as a component of our provision for income taxes. Accrued interest and penalties are included with the related tax liability. |
Net Income Per Share Attributable to Common Stockholders | Net Income Per Share Attributable to Common Stockholders We calculate our net income per share attributable to Class A and Class B common stock using the two-class method required for companies with participating securities. We consider our convertible preferred stock and unvested common stock, which includes early exercised stock options and RSAs, to be participating securities as holders of such securities have non-forfeitable dividend rights in the event of our declaration of a dividend for shares of common stock. Distributed and undistributed earnings allocated to participating securities are subtracted from net income in determining net income attributable to common stockholders. Basic net income per share is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of our Class A and Class B common stock outstanding. |
Segment Information | Segment Information We operate in one operating segment. Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker, who is our Chief Executive Officer (“CEO”), in deciding how to allocate resources and assessing performance. Our chief operating decision maker allocates resources and assesses performance based upon consolidated financial information. |
Recently Adopted Accounting Pronouncements | Recent Accounting Pronouncements Not Yet Adopted In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities in accordance with Accounting Standards Codification Topic 606. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022 and early adoption is permitted. We do not expect the adoption to have a material effect on our consolidated financial statements. |
Summary of Business and Signi_3
Summary of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Accounting Policies [Abstract] | |
Accounts Receivable, Allowance for Credit Loss | 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 January 31, 2022 As of January 31, 2021 (in thousands) Accounts receivable, gross $ 444,369 $ 331,547 Less: Allowance for credit losses (17,000) (20,500) Less: Allowance for returns (7,696) (16,344) Accounts receivable, net $ 419,673 $ 294,703 January 31, 2022 January 31, 2021 (in thousands) Balance as of beginning of year $ 20,500 $ 5,150 Provision for credit losses 32,587 25,651 Write-offs (36,087) (10,301) Balance as of end of year $ 17,000 $ 20,500 |
Long-lived Assets by Geographic Areas | The following table presents our property and equipment, net of depreciation and amortization, by geographic region: As of January 31, 2022 2021 (in thousands) Americas $ 180,033 $ 138,093 APAC 36,715 10,033 EMEA 5,606 1,798 Total property and equipment, net $ 222,354 $ 149,924 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue by Region | The following table summarizes revenue by region based on the billing address of customers: Year Ended January 31, 2022 2021 2020 Amount Percentage of Amount Percentage of Amount Percentage of (in thousands, except percentages) Americas $ 2,734,241 67 % $ 1,831,694 69 % $ 500,622 81 % APAC 564,120 13 332,844 13 51,152 8 EMEA 801,503 20 486,830 18 70,884 11 Total $ 4,099,864 100 % $ 2,651,368 100 % $ 622,658 100 % |
Deferred Contract Acquisition Costs | The following table represents a rollforward of deferred contract acquisition costs: Year Ended January 31, 2022 2021 (in thousands) Beginning balance $ 293,892 $ 91,130 Additions to deferred contract acquisition costs 247,371 307,068 Amortization of deferred contract acquisition costs (177,283) (104,306) Ending balance $ 363,980 $ 293,892 Deferred contract acquisition costs, current (to be amortized in next 12 months) $ 199,266 $ 136,630 Deferred contract acquisition costs, noncurrent 164,714 157,262 Total deferred contract acquisition costs $ 363,980 $ 293,892 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Marketable Securities | As of January 31, 2022 and 2021, our marketable securities consisted of the following: As of January 31, 2022 Amortized Gross Gross Estimated (in thousands) Commercial paper $ 28,723 $ — $ — $ 28,723 Agency bonds 632,935 2 (3,328) 629,609 Corporate and other debt securities 282,124 5 (1,202) 280,927 U.S. government agency securities 3,046,742 28 (19,261) 3,027,509 Treasury bills 389,826 — (148) 389,678 Marketable securities $ 4,380,350 $ 35 $ (23,939) $ 4,356,446 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 January 31, 2022 and 2021: As of January 31, 2022 2021 (in thousands) Less than one year $ 2,387,139 $ 1,017,048 Due in one to five years 1,969,307 987,362 Total $ 4,356,446 $ 2,004,410 |
Investment Holdings, Schedule of Investments | Strategic investments by form and measurement category as of January 31, 2022 were as follows: Measurement Category Fair Value Measurement Alternative Equity Method Total (in thousands) Equity securities $ 168,784 $ 91,399 $ 93,400 $ 353,583 Debt securities 14,231 — — 14,231 Strategic investments $ 183,015 $ 91,399 $ 93,400 $ 367,814 Strategic investments by form and measurement category as of January 31, 2021 were as follows: Measurement Category Fair Value Measurement Alternative Equity Method Total (in thousands) Equity securities $ — $ 13,538 $ — $ 13,538 Debt securities 5,130 — — 5,130 Strategic investments $ 5,130 $ 13,538 $ — $ 18,668 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
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 January 31, 2022 Fair Value Level 1 Level 2 Level 3 (in thousands) Financial Assets: Money market funds $ 688,722 $ 688,722 $ — $ — Treasury bills 107,496 — 107,496 — Corporate debt securities 749 — 749 — Cash equivalents 796,967 688,722 108,245 — Commercial paper 28,723 — 28,723 — Agency bonds 629,609 — 629,609 — Corporate and other debt securities 280,927 — 280,927 — U.S. government agency securities 3,027,509 — 3,027,509 — Treasury bills 389,678 — 389,678 — Marketable securities 4,356,446 — 4,356,446 — Certificates of deposit included in other assets, noncurrent 297 — 297 — Publicly held equity securities included in strategic investments 168,784 168,784 — — Privately held debt securities included in strategic investments 14,231 — — 14,231 Total financial assets $ 5,336,725 $ 857,506 $ 4,464,988 $ 14,231 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 — Privately held debt securities included in strategic investments 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) | 12 Months Ended |
Jan. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure | Prepaid expenses and other current assets consisted of the following: As of January 31, 2022 2021 (in thousands) Prepaid expenses 112,666 60,702 Restricted cash from international employee stock sales 10,236 50,475 Other 22,700 5,642 Prepaid expenses and other current assets $ 145,602 $ 116,819 |
Schedule of Property and Equipment | Property and equipment consisted of the following: As of January 31, 2022 2021 (in thousands) Computer and office equipment $ 224,901 $ 137,445 Software 59,153 36,216 Leasehold improvements 25,340 23,593 Furniture and fixtures 4,565 4,625 Property and equipment, gross 313,959 201,879 Less: accumulated depreciation and amortization (91,605) (51,955) Property and equipment, net $ 222,354 $ 149,924 |
Schedule of Other Assets, Noncurrent | Other assets, noncurrent consisted of the following: As of January 31, 2022 2021 (in thousands) Accounts receivable, noncurrent $ 55,643 $ 28,008 Prepaid expense, noncurrent 16,120 12,386 Other 34,998 15,372 Other assets, noncurrent $ 106,761 $ 55,766 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: As of January 31, 2022 2021 (in thousands) Accrued expenses $ 149,658 $ 157,167 Accrued compensation and benefits 126,322 118,640 Income tax liability 56,968 3,426 Sales and other tax liabilities 33,305 27,453 Customer deposit liabilities 20,884 13,050 Operating lease liabilities, current 20,697 15,601 Proceeds from employee equity transactions to be remitted to employees and tax authorities 14,169 54,174 Other 8,412 3,507 Accrued expenses and other current liabilities $ 430,415 $ 393,018 |
Schedule of Other Liabilities, Noncurrent | Other liabilities, noncurrent consisted of the following: As of January 31, 2022 2021 (in thousands) Sales and other tax liabilities $ 53,916 $ 58,133 Other 14,194 3,501 Other liabilities, noncurrent $ 68,110 $ 61,634 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information | Supplemental balance sheet information related to operating leases was as follows: As of January 31, 2022 2021 (in thousands, except life and percentages) Reported as: Assets: Operating lease right-of-use assets $ 95,965 $ 97,649 Liabilities: Accrued expenses and other current liabilities $ 20,697 $ 15,601 Operating lease liabilities, noncurrent 85,018 90,415 Total operating lease liabilities $ 105,715 $ 106,016 Weighted average remaining lease term 5.1 years 6.1 years Weighted average discount rate 4.0 % 4.5 % |
Supplemental Cash Flow and Other Information | Supplemental cash flow and other information related to operating leases was as follows: Year Ended January 31, 2022 2021 2020 (in thousands) Cash payments included in the measurement of our operating lease liabilities $ 22,679 $ 13,717 $ 9,774 Operating lease right-of-use assets recognized in exchange for new operating lease obligations $ 16,784 $ 39,918 $ 34,993 |
Schedule of Future Minimum Lease Payments included in Measurement of Operating Lease Liabilities | As of January 31, 2022, the future minimum lease payments included in the measurement of our operating lease liabilities are as follows: As of January 31, 2022 (in thousands) Year Ending January 31, 2023 $ 24,491 2024 24,234 2025 23,552 2026 18,467 2027 11,704 Thereafter 15,315 Total operating lease payments $ 117,763 Less: imputed interest (12,048) Total operating lease liabilities $ 105,715 |
Stockholders' Equity and Equi_2
Stockholders' Equity and Equity Incentive Plans (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Equity [Abstract] | |
Schedule of Stock by Class Reserved for Future Issuance | We have the following shares of Class A common stock reserved for future issuance: As of January 31, 2022 2021 Stock options outstanding 6,195,205 9,239,504 RSUs outstanding 5,546,366 4,510,730 ESPP purchase rights outstanding 1,784,687 724,883 Remaining shares available for future issuance under the 2011 and 2019 plan 56,620,720 44,584,783 Remaining shares available for future issuance under the ESPP 10,685,867 9,648,574 Total shares of Class A common stock reserved 80,832,845 68,708,474 |
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) Outstanding as of January 31, 2021 9,239,504 $ 7.17 7.0 $ 3,371,457 Exercised (2,881,485) $ 5.00 $ 842,989 Canceled/forfeited/expired (162,814) $ 11.24 Outstanding as of January 31, 2022 6,195,205 $ 8.08 6.0 $ 905,744 Vested and expected to vest as of January 31, 2022 6,195,205 $ 8.08 6.0 $ 905,744 Exercisable as of January 31, 2022 4,898,249 $ 5.72 5.9 $ 727,701 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The Black-Scholes assumptions used to value the employee options at the grant dates are as follows: Year Ended January 31, 2020 Expected term (years) 5.0 - 6.1 Expected volatility 49.9% - 53.2% Risk-free interest rate 1.6% - 2.5% Expected dividend yield — |
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-Average Unvested as of January 31, 2021 4,510,730 $ 194.57 Granted 3,195,949 $ 265.12 Vested (1,768,702) $ 190.36 Canceled/forfeited (391,611) $ 250.92 Unvested as of January 31, 2022 5,546,366 $ 232.58 |
Summary of Assumptions for Estimating Fair Value of ESPP Purchase Rights | We estimated the fair value of ESPP purchase rights using a Black-Scholes option-pricing model with the following assumptions: Year Ended January 31, 2022 2021 Expected term (years) 0.5 - 2.1 0.5 - 2.1 Expected volatility 40.3% - 75.0% 40.3% - 75.0% Risk-free interest rate 0.0% - 2.5% 0.1% - 2.5% Expected dividend yield — — |
Summary of Stock-based Compensation Expense by Line Item | The stock-based compensation expense by line item in the accompanying consolidated statements of operations is summarized as follows: Year Ended January 31, 2022 2021 2020 (in thousands) Cost of revenue $ 69,612 $ 34,960 $ 7,860 Research and development 113,000 50,161 11,645 Sales and marketing 229,297 146,377 41,465 General and administrative 65,378 44,320 12,139 Total stock-based compensation expense 477,287 275,818 73,109 Benefit from income taxes (84,245) — — Total stock-based compensation expense recorded to net income $ 393,042 $ 275,818 $ 73,109 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of the Net Income (Loss) before Provision of Income Taxes | The components of the net income before the (benefit from) provision for income taxes were as follows: Year Ended January 31, 2022 2021 2020 (in thousands) Domestic $ 1,047,318 $ 663,909 $ 16,268 Foreign 54,314 14,125 10,094 Total $ 1,101,632 $ 678,034 $ 26,362 |
Provision of Income Taxes | The (benefit from) provision for income taxes was as follows: Year Ended January 31, 2022 2021 2020 (in thousands) Current: Federal $ 69,853 $ — $ — State 20,174 1,023 14 Foreign 12,027 3,933 2,226 Total current income tax expense 102,054 4,956 2,240 Deferred: Federal (293,704) 689 — State (82,561) 248 — Foreign 204 (175) (1,183) Total deferred income tax expense (376,061) 762 (1,183) Total (benefit from) provision for income taxes $ (274,007) $ 5,718 $ 1,057 |
Provision for Income Taxes | The (benefit from) provision for income taxes differs from the amount computed by applying the statutory federal tax rate as follows: Year Ended January 31, 2022 2021 2020 (in thousands, except percentages) Tax at federal statutory rate $ 231,350 $ 142,387 $ 5,536 State taxes 24,840 636 14 Foreign rate differential 1,830 89 (2,096) Stock-based compensation (135,250) (302,362) (32,070) Foreign-derived intangible income deduction (34,131) — — Permanent items 3,971 2,228 1,009 Research and development credits (42,973) (3,170) (2,808) Tax uncertainties 244 (607) 1,019 Change in valuation allowance (322,231) 165,869 30,932 Other (1,658) 648 (479) Total $ (274,007) $ 5,718 $ 1,057 Effective tax rate (24.9) % 0.8 % 4.0 % |
Significant Components of Deferred Income Tax Assets | Significant components of our deferred income tax assets as of January 31, 2022 and 2021 are as follows: As of January 31, 2022 2021 (in thousands) Deferred tax assets: Net operating loss carryforwards $ 21,558 $ 341,487 Research and development credit carryforwards 9,985 12,191 Stock-based compensation 44,490 37,255 Accruals and reserves 14,475 29,195 Deferred revenue 260,322 6,565 Capitalized research expenditures 131,010 — Operating lease liabilities 25,892 27,842 Total deferred tax assets 507,732 454,535 Valuation allowance (12,605) (335,051) Total deferred tax assets net of valuation allowance 495,127 119,484 Deferred tax liabilities: Property and equipment and intangible assets (26,733) (17,229) Deferred contract acquisition costs (62,814) (76,593) Operating right-of-use assets (23,466) (25,550) Total deferred tax liabilities (113,013) (119,372) Net deferred tax assets $ 382,114 $ 112 |
Reconciliation of Unrecognized Tax Position | A reconciliation of the beginning and ending balance of total unrecognized tax benefits is as follows: Unrecognized Tax Benefits (in thousands) Year Ended January 31, 2022 2021 2020 Balance, beginning of year $ 14,884 $ 8,106 $ 2,778 Tax Positions taken in prior year: Gross increases — 314 — Gross decreases (3,764) — — Tax Positions taken in current year: Gross increases 8,211 6,001 5,328 Gross decreases — — — Lapse of Statute of Limitations (160) (422) — Acquisitions — 885 — Balance, end of year $ 19,171 $ 14,884 $ 8,106 |
Net Income Per Share Attribut_2
Net Income Per Share Attributable to Common Stockholders (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income (Loss) 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: Year Ended January 31, 2022 2021 2020 Class A Class B Class A Class B Class A Class B Numerator: (in thousands, except share and per share data) Net income $ 1,105,368 $ 270,271 $ 432,968 $ 239,348 $ 5,450 $ 19,855 Less: undistributed earnings attributable to participating securities — (582) — (789) — (3,555) Net income attributable to common stockholders, basic $ 1,105,368 $ 269,689 $ 432,968 $ 238,559 $ 5,450 $ 16,300 Reallocation of net income attributable to common stockholders (23,891) 23,891 (14,321) 14,321 (439) 439 Net income attributable to common stockholders, diluted $ 1,081,477 $ 293,580 $ 418,647 $ 252,880 $ 5,011 $ 16,739 Denominator: Weighted-average shares used in computing net income per share attributable to common stockholders, basic 238,214,936 58,119,958 183,015,245 100,838,409 58,541,269 175,100,067 Weighted-average shares used in computing net income per share attributable to common stockholders, diluted 240,531,470 65,295,035 185,860,412 112,267,257 58,583,874 195,714,140 Net income per share attributable to common stockholders, basic $ 4.64 $ 4.64 $ 2.37 $ 2.37 $ 0.09 $ 0.09 Net income per share attributable to common stockholders, diluted $ 4.50 $ 4.50 $ 2.25 $ 2.25 $ 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: Year Ended January 31, 2022 2021 2020 Class A Class B Class A Class B Class A Class B Outstanding stock options — — 51,444 — 141,782 — Unvested RSUs 1,015,860 — 98,941 — 606,971 — Purchase rights committed under the ESPP 241,107 — 14,951 — 1,180,664 — Total 1,256,967 — 165,336 — 1,929,417 — |
Summary of Business and Signi_4
Summary of Business and Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||
Jan. 31, 2022USD ($)votereporting_unit | Jan. 31, 2021USD ($) | Jan. 31, 2020USD ($) | |
Summary Of Business And Significant Accounting Policies [Line Items] | |||
Restricted cash from international employee stock sales | $ 10,236,000 | $ 50,475,000 | |
Capitalized software development costs | 20,200,000 | 19,400,000 | $ 3,100,000 |
Impairment of long-lived assets | $ 0 | 0 | 0 |
Number of Reporting Units | reporting_unit | 1 | ||
Advertising expense | $ 40,900,000 | $ 34,800,000 | $ 42,000,000 |
Number of operating segments | vote | 1 | ||
Revenue from Contract with Customer | Professional Services Fees Concentration Risk | Service | |||
Summary Of Business And Significant Accounting Policies [Line Items] | |||
Percentage of revenue | 2.00% | ||
Minimum | |||
Summary Of Business And Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Maximum | |||
Summary Of Business And Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 5 years | ||
Leasehold Improvements | Maximum | |||
Summary Of Business And Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 5 years | ||
Software | |||
Summary Of Business And Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 3 years |
Summary of Business and Signi_5
Summary of Business and Significant Accounting Policies - Accounts Receivable, Allowance for Credit Loss (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Accounts receivable, gross | $ 444,369 | $ 331,547 | |
Less: Allowance for credit losses | (17,000) | (20,500) | $ (5,150) |
Less: Allowance for returns | (7,696) | (16,344) | |
Accounts receivable, net | $ 419,673 | $ 294,703 |
Summary of Business and Signi_6
Summary of Business and Significant Accounting Policies - Accounts Receivable Allowance For Credit Loss Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Allowance for Doubtful Accounts Receivable, Beginning Balance | $ 20,500 | $ 5,150 |
Provision for credit losses | 32,587 | 25,651 |
Write-offs | (36,087) | (10,301) |
Allowance for Doubtful Accounts Receivable, Ending Balance | $ 17,000 | $ 20,500 |
Summary of Business and Signi_7
Summary of Business and Significant Accounting Policies - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 222,354 | $ 149,924 |
Americas | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 180,033 | 138,093 |
APAC | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 36,715 | 10,033 |
EMEA | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 5,606 | $ 1,798 |
Revenue Recognition - Summary D
Revenue Recognition - Summary Disaggregation of Revenue by Region (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 4,099,864 | $ 2,651,368 | $ 622,658 |
Revenue from Contract with Customer | Geographic Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of Revenue | 100.00% | 100.00% | 100.00% |
Americas | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 2,734,241 | $ 1,831,694 | $ 500,622 |
Americas | Revenue from Contract with Customer | Geographic Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of Revenue | 67.00% | 69.00% | 81.00% |
APAC | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 564,120 | $ 332,844 | $ 51,152 |
APAC | Revenue from Contract with Customer | Geographic Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of Revenue | 13.00% | 13.00% | 8.00% |
EMEA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 801,503 | $ 486,830 | $ 70,884 |
EMEA | Revenue from Contract with Customer | Geographic Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of Revenue | 20.00% | 18.00% | 11.00% |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |||
Unbilled accounts receivable | $ 59.7 | $ 24.6 | |
Revenue recognized included in deferred revenue | $ 858.2 | $ 222 | $ 119.1 |
Capitalized contract cost, amortization period | 3 years |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligation (Details) $ in Millions | Jan. 31, 2022USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 2,647.6 |
Billed consideration | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | 1,179.9 |
Unbilled consideration | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 1,467.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-02-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation percentage | 63.00% |
Revenue remaining performance obligation, expected timing of satisfaction period | 12 months |
Revenue Recognition - Deferred
Revenue Recognition - Deferred Contract Acquisition Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Capitalized Contract Cost, Net | |||
Beginning balance | $ 293,892 | $ 91,130 | |
Additions to deferred contract acquisition costs | 247,371 | 307,068 | |
Amortization of deferred contract acquisition costs | (177,283) | (104,306) | $ (37,101) |
Ending balance | 363,980 | 293,892 | 91,130 |
Deferred contract acquisition costs, current | 199,266 | 136,630 | |
Deferred contract acquisition costs, noncurrent | 164,714 | 157,262 | |
Total deferred contract acquisition costs | $ 363,980 | $ 293,892 | $ 91,130 |
Investments - Summary Marketabl
Investments - Summary Marketable Securities (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Marketable Securities [Line Items] | ||
Amortized Cost | $ 4,380,350 | $ 2,003,560 |
Gross Unrealized Gains | 35 | 1,226 |
Gross Unrealized Losses | (23,939) | (376) |
Estimated Fair Value | 4,356,446 | 2,004,410 |
Commercial paper | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 28,723 | 26,222 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 28,723 | 26,222 |
Agency bonds | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 632,935 | 461,335 |
Gross Unrealized Gains | 2 | 79 |
Gross Unrealized Losses | (3,328) | (49) |
Estimated Fair Value | 629,609 | 461,365 |
Corporate and other debt securities | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 282,124 | 465,207 |
Gross Unrealized Gains | 5 | 1,113 |
Gross Unrealized Losses | (1,202) | (64) |
Estimated Fair Value | 280,927 | 466,256 |
U.S. government agency securities | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 3,046,742 | 834,894 |
Gross Unrealized Gains | 28 | 28 |
Gross Unrealized Losses | (19,261) | (257) |
Estimated Fair Value | 3,027,509 | 834,665 |
Treasury bills | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 389,826 | 215,902 |
Gross Unrealized Gains | 0 | 6 |
Gross Unrealized Losses | (148) | (6) |
Estimated Fair Value | $ 389,678 | $ 215,902 |
Investments - Additional Inform
Investments - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jan. 31, 2022 | Jul. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Fair Value, Separate Account Investment [Line Items] | |||||
Available-for-sale, realized gain (loss) | $ 0 | $ 0 | $ 0 | ||
Income (loss) from equity method investments | $ 49,900,000 | ||||
Strategic Investment Of Technology Company | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Payments for strategic investment | $ 75,000,000 | ||||
Lock up agreement term | 180 days | ||||
Gain (loss) on investment | 26,300,000 | ||||
Strategic Investment Of Software Company | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Payments for strategic investment | 100,000,000 | ||||
Gain (loss) on investment | (32,500,000) | ||||
Strategic Investment Of Private Company | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Payment for alternative investment | 75,000,000 | ||||
Fair Value | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Equity securities | 168,784,000 | 168,784,000 | $ 0 | ||
Equity investment | 93,400,000 | 93,400,000 | |||
Fair Value | Strategic Investment Of Technology Company | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Equity securities | $ 101,300,000 | $ 101,300,000 | |||
Ownership percentage | 1.00% | 1.00% | |||
Fair Value | Strategic Investment Of Software Company | |||||
Fair Value, Separate Account Investment [Line Items] | |||||
Equity securities | $ 67,500,000 | $ 67,500,000 | |||
Ownership percentage | 2.00% | 2.00% |
Investments - Summary of Contra
Investments - Summary of Contractual Maturities of Marketable Securities (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Less than one year | $ 2,387,139 | $ 1,017,048 |
Due in one to five years | 1,969,307 | 987,362 |
Total | $ 4,356,446 | $ 2,004,410 |
Investments - Schedule of Strat
Investments - Schedule of Strategic Investments (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Fair Value, Separate Account Investment [Line Items] | ||
Measurement Alternative | $ 91,399 | $ 13,538 |
Equity Method | 93,400 | 0 |
Total equity securities | 353,583 | 13,538 |
Debt securities | 14,231 | 5,130 |
Fair value of strategic investments | 183,015 | 5,130 |
Total strategic investments | 367,814 | 18,668 |
Fair Value | ||
Fair Value, Separate Account Investment [Line Items] | ||
Equity securities | 168,784 | 0 |
Debt securities | $ 14,231 | $ 5,130 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Financial Assets: | ||
Marketable securities | $ 4,356,446 | $ 2,004,410 |
Commercial paper | ||
Financial Assets: | ||
Marketable securities | 28,723 | 26,222 |
Agency bonds | ||
Financial Assets: | ||
Marketable securities | 629,609 | 461,365 |
Corporate and other debt securities | ||
Financial Assets: | ||
Marketable securities | 280,927 | 466,256 |
U.S. government agency securities | ||
Financial Assets: | ||
Marketable securities | 3,027,509 | 834,665 |
Treasury bills | ||
Financial Assets: | ||
Marketable securities | 389,678 | 215,902 |
Fair Value, Recurring Basis | ||
Financial Assets: | ||
Cash equivalents | 796,967 | 1,576,855 |
Marketable securities | 4,356,446 | 2,004,410 |
Publicly held equity securities included in strategic investments | 168,784 | |
Total financial assets | 5,336,725 | 3,588,733 |
Fair Value, Recurring Basis | Commercial paper | ||
Financial Assets: | ||
Marketable securities | 28,723 | 26,222 |
Fair Value, Recurring Basis | Agency bonds | ||
Financial Assets: | ||
Marketable securities | 629,609 | 461,365 |
Fair Value, Recurring Basis | Corporate and other debt securities | ||
Financial Assets: | ||
Marketable securities | 280,927 | 466,256 |
Fair Value, Recurring Basis | U.S. government agency securities | ||
Financial Assets: | ||
Marketable securities | 3,027,509 | 834,665 |
Fair Value, Recurring Basis | Treasury bills | ||
Financial Assets: | ||
Marketable securities | 389,678 | 215,902 |
Fair Value, Recurring Basis | Certificates of deposit | ||
Financial Assets: | ||
Certificate of deposit included in prepaid expenses and other current assets | 100 | |
Certificates of deposit included in other assets, noncurrent | 297 | 2,238 |
Fair Value, Recurring Basis | Privately held debt securities included in strategic investments | ||
Financial Assets: | ||
Marketable securities | 14,231 | 5,130 |
Fair Value, Recurring Basis | Money market funds | ||
Financial Assets: | ||
Cash equivalents | 688,722 | 958,357 |
Fair Value, Recurring Basis | Treasury bills | ||
Financial Assets: | ||
Cash equivalents | 107,496 | 618,498 |
Fair Value, Recurring Basis | Corporate debt securities | ||
Financial Assets: | ||
Cash equivalents | 749 | |
Fair Value, Recurring Basis | Level 1 | ||
Financial Assets: | ||
Cash equivalents | 688,722 | 958,357 |
Marketable securities | 0 | 0 |
Publicly held equity securities included in strategic investments | 168,784 | |
Total financial assets | 857,506 | 958,357 |
Fair Value, Recurring Basis | Level 1 | Commercial paper | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring Basis | Level 1 | Agency bonds | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring Basis | Level 1 | Corporate and other debt securities | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring Basis | Level 1 | U.S. government agency securities | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring Basis | Level 1 | Treasury bills | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring Basis | Level 1 | Certificates of deposit | ||
Financial Assets: | ||
Certificate of deposit included in prepaid expenses and other current assets | 0 | |
Certificates of deposit included in other assets, noncurrent | 0 | 0 |
Fair Value, Recurring Basis | Level 1 | Privately held debt securities included in strategic investments | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring Basis | Level 1 | Money market funds | ||
Financial Assets: | ||
Cash equivalents | 688,722 | 958,357 |
Fair Value, Recurring Basis | Level 1 | Treasury bills | ||
Financial Assets: | ||
Cash equivalents | 0 | 0 |
Fair Value, Recurring Basis | Level 1 | Corporate debt securities | ||
Financial Assets: | ||
Cash equivalents | 0 | |
Fair Value, Recurring Basis | Level 2 | ||
Financial Assets: | ||
Cash equivalents | 108,245 | 618,498 |
Marketable securities | 4,356,446 | 2,004,410 |
Publicly held equity securities included in strategic investments | 0 | |
Total financial assets | 4,464,988 | 2,625,246 |
Fair Value, Recurring Basis | Level 2 | Commercial paper | ||
Financial Assets: | ||
Marketable securities | 28,723 | 26,222 |
Fair Value, Recurring Basis | Level 2 | Agency bonds | ||
Financial Assets: | ||
Marketable securities | 629,609 | 461,365 |
Fair Value, Recurring Basis | Level 2 | Corporate and other debt securities | ||
Financial Assets: | ||
Marketable securities | 280,927 | 466,256 |
Fair Value, Recurring Basis | Level 2 | U.S. government agency securities | ||
Financial Assets: | ||
Marketable securities | 3,027,509 | 834,665 |
Fair Value, Recurring Basis | Level 2 | Treasury bills | ||
Financial Assets: | ||
Marketable securities | 389,678 | 215,902 |
Fair Value, Recurring Basis | Level 2 | Certificates of deposit | ||
Financial Assets: | ||
Certificate of deposit included in prepaid expenses and other current assets | 100 | |
Certificates of deposit included in other assets, noncurrent | 297 | 2,238 |
Fair Value, Recurring Basis | Level 2 | Privately held debt securities included in strategic investments | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring Basis | Level 2 | Money market funds | ||
Financial Assets: | ||
Cash equivalents | 0 | 0 |
Fair Value, Recurring Basis | Level 2 | Treasury bills | ||
Financial Assets: | ||
Cash equivalents | 107,496 | 618,498 |
Fair Value, Recurring Basis | Level 2 | Corporate debt securities | ||
Financial Assets: | ||
Cash equivalents | 749 | |
Fair Value, Recurring Basis | Level 3 | ||
Financial Assets: | ||
Cash equivalents | 0 | 0 |
Marketable securities | 0 | 0 |
Publicly held equity securities included in strategic investments | 0 | |
Total financial assets | 14,231 | 5,130 |
Fair Value, Recurring Basis | Level 3 | Commercial paper | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring Basis | Level 3 | Agency bonds | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring Basis | Level 3 | Corporate and other debt securities | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring Basis | Level 3 | U.S. government agency securities | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring Basis | Level 3 | Treasury bills | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring Basis | Level 3 | Certificates of deposit | ||
Financial Assets: | ||
Certificate of deposit included in prepaid expenses and other current assets | 0 | |
Certificates of deposit included in other assets, noncurrent | 0 | 0 |
Fair Value, Recurring Basis | Level 3 | Privately held debt securities included in strategic investments | ||
Financial Assets: | ||
Marketable securities | 14,231 | 5,130 |
Fair Value, Recurring Basis | Level 3 | Money market funds | ||
Financial Assets: | ||
Cash equivalents | 0 | 0 |
Fair Value, Recurring Basis | Level 3 | Treasury bills | ||
Financial Assets: | ||
Cash equivalents | 0 | $ 0 |
Fair Value, Recurring Basis | Level 3 | Corporate debt securities | ||
Financial Assets: | ||
Cash equivalents | $ 0 |
Business Combinations (Details)
Business Combinations (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | May 07, 2020 | Jan. 31, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 27,607 | $ 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 | 3 years 3 months 18 days | 5 years | |
Holdback agreements related to employees | $ 20,000 |
Balance Sheet Components - Prep
Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid expenses | $ 112,666 | $ 60,702 |
Restricted cash from international employee stock sales | 10,236 | 50,475 |
Other | 22,700 | 5,642 |
Prepaid expenses and other current assets | $ 145,602 | $ 116,819 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 313,959 | $ 201,879 |
Less: accumulated depreciation and amortization | (91,605) | (51,955) |
Property and equipment, net | 222,354 | 149,924 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 224,901 | 137,445 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 59,153 | 36,216 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 25,340 | 23,593 |
Furniture and Fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 4,565 | $ 4,625 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Depreciation and amortization expense | $ 47.5 | $ 28.4 | $ 16.4 |
Balance Sheet Components - Othe
Balance Sheet Components - Other Assets, Noncurrent (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts receivable, noncurrent | $ 55,643 | $ 28,008 |
Prepaid expense, noncurrent | 16,120 | 12,386 |
Other | 34,998 | 15,372 |
Other assets, noncurrent | $ 106,761 | $ 55,766 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued expenses | $ 149,658 | $ 157,167 |
Accrued compensation and benefits | 126,322 | 118,640 |
Income tax liability | 56,968 | 3,426 |
Sales and other tax liabilities | 33,305 | 27,453 |
Customer deposit liabilities | 20,884 | 13,050 |
Operating lease liabilities, current | 20,697 | 15,601 |
Proceeds from employee equity transactions to be remitted to employees and tax authorities | 14,169 | 54,174 |
Other | 8,412 | 3,507 |
Accrued expenses and other current liabilities | $ 430,415 | $ 393,018 |
Balance Sheet Components - Sc_3
Balance Sheet Components - Schedule of Other Liabilities Non Current (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrual for Taxes Other than Income Taxes, Noncurrent | $ 53,916 | $ 58,133 |
Other | 14,194 | 3,501 |
Other liabilities, noncurrent | $ 68,110 | $ 61,634 |
Operating Leases - Additional I
Operating Leases - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Jan. 31, 2022USD ($)lease | Jan. 31, 2021USD ($) | Jan. 31, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Number of operating lease options | lease | 1 | ||
Operating lease expense | $ | $ 22.8 | $ 14.5 | $ 9.7 |
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lease contractual period | 8 years |
Operating Leases - Schedule of
Operating Leases - Schedule of Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Assets | ||
Operating lease right-of-use assets | $ 95,965 | $ 97,649 |
Liabilities: | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Accrued expenses and other current liabilities | $ 20,697 | $ 15,601 |
Operating lease liabilities, noncurrent | 85,018 | 90,415 |
Total operating lease liabilities | $ 105,715 | $ 106,016 |
Weighted average remaining lease term | 5 years 1 month 6 days | 6 years 1 month 6 days |
Weighted average discount rate | 4.00% | 4.50% |
Operating Leases - Schedule o_2
Operating Leases - Schedule of Supplemental Cash flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Leases [Abstract] | |||
Cash payments included in the measurement of our operating lease liabilities | $ 22,679 | $ 13,717 | $ 9,774 |
Operating lease right-of-use assets recognized in exchange for new operating lease obligations | $ 16,784 | $ 39,918 | $ 34,993 |
Operating Leases - Schedule o_3
Operating Leases - Schedule of Future Minimum Lease Payments included in Measurement of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Operating Leases Future Minimum Lease Payments [Abstract] | ||
2023 | $ 24,491 | |
2024 | 24,234 | |
2025 | 23,552 | |
2026 | 18,467 | |
2027 | 11,704 | |
Thereafter | 15,315 | |
Total operating lease payments | 117,763 | |
Less: imputed interest | (12,048) | |
Total operating lease liabilities | $ 105,715 | $ 106,016 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | Nov. 17, 2021lawsuit | Oct. 21, 2021USD ($) | Jul. 30, 2020officer | Jun. 11, 2020officer | Apr. 08, 2020officer | Jan. 31, 2022USD ($) | Jan. 31, 2021USD ($) |
Other Commitments [Line Items] | |||||||
Purchase obligations with term of less than 12 months | $ 227,200 | ||||||
Purchase obligations with terms of greater than 12 months | 159,400 | ||||||
Sales and other tax liabilities | 87,200 | $ 85,600 | |||||
Sales and other tax liabilities, current | 33,300 | 27,500 | |||||
Sales and other tax liabilities, noncurrent | 53,916 | $ 58,133 | |||||
Loss contingency, number of defendants | lawsuit | 3 | ||||||
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] | |||||||
Payments for legal settlements | $ 85,000 | ||||||
Loss Contingency, Loss in Period | $ 66,900 |
Stockholders' Equity and Equi_3
Stockholders' Equity and Equity Incentive Plans - Additional Information (Details) | Jan. 15, 2021USD ($)$ / sharesshares | Apr. 30, 2019USD ($)shares | Apr. 23, 2019USD ($)$ / sharesshares | Apr. 18, 2019shares | Apr. 30, 2019USD ($)voteshares | Jan. 31, 2022USD ($)$ / sharesshares | Jan. 31, 2021USD ($)$ / sharesshares | Jan. 31, 2020USD ($)shares | Jan. 31, 2019USD ($)shares | Nov. 30, 2018vote$ / sharesshares |
Class of Stock [Line Items] | ||||||||||
Convertible preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | 152,665,804 | ||||||
Convertible preferred stock conversion basis | 1 | 1 | ||||||||
Conversion of convertible preferred stock to common stock upon initial public offering | $ | $ 0 | $ 0 | $ 159,552,000 | |||||||
Convertible preferred stock, shares issued (in shares) | 0 | 0 | ||||||||
Undesignated preferred stock shares authorized (in shares) | 200,000,000 | 200,000,000 | ||||||||
Undesignated referred stock par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||||||||
Common stock, conversion features, term | 6 months | |||||||||
Initial offering period | 15 years | |||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | 0.001 | ||||||||
Shares granted (in shares) | 0 | |||||||||
Weighted average grant date fair value of options for employees (in dollars per share) | $ / shares | $ 25.17 | |||||||||
Expected unrecognized stock-based compensation expenses related to outstanding unvested stock options | $ | $ 19,700,000 | |||||||||
Number of shares available for future issuance (in shares) | 80,832,845 | 68,708,474 | ||||||||
Number of purchase periods | vote | 4 | |||||||||
Other Assets, Non-current | ||||||||||
Class of Stock [Line Items] | ||||||||||
Capitalized deferred offering costs within other assets, non-current | $ | $ 2,400,000 | |||||||||
RSUs | ||||||||||
Class of Stock [Line Items] | ||||||||||
Unrecognized stock-based compensation excepted to be recognized over a weighted-average period | 2 years 9 months 18 days | |||||||||
Unrecognized stock-based compensation expenses | $ | $ 1,437,200,000 | |||||||||
Number of shares available for future issuance (in shares) | 5,546,366 | 4,510,730 | ||||||||
Purchase rights committed under the ESPP | ||||||||||
Class of Stock [Line Items] | ||||||||||
Unrecognized stock-based compensation excepted to be recognized over a weighted-average period | 1 year 7 months 6 days | |||||||||
Unrecognized stock-based compensation expenses | $ | $ 65,300,000 | |||||||||
Number of shares available for future issuance (in shares) | 1,784,687 | 724,883 | ||||||||
Maximum number of shares per employee (in shares) | 3,000 | |||||||||
Consecutive offering period | 27 months | |||||||||
Stock options | ||||||||||
Class of Stock [Line Items] | ||||||||||
Unrecognized stock-based compensation excepted to be recognized over a weighted-average period | 9 months 18 days | |||||||||
Number of shares available for future issuance (in shares) | 6,195,205 | 9,239,504 | ||||||||
2019 Plan | ||||||||||
Class of Stock [Line Items] | ||||||||||
Vesting period of awards | 4 years | |||||||||
Maximum term | 10 years | |||||||||
Shares reserved for issuance, percentage | 5.00% | 5.00% | ||||||||
2019 Employee Stock Purchase Plan | Purchase rights committed under the ESPP | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number of shares available for future issuance (in shares) | 10,685,867 | 9,648,574 | ||||||||
Percent of outstanding stock, maximum | 1.00% | |||||||||
Number of additional shares allowable under the plan (in shares) | 7,500,000 | |||||||||
Initial public offering | ||||||||||
Class of Stock [Line Items] | ||||||||||
Convertible preferred stock, shares outstanding (in shares) | 152,665,804 | |||||||||
Conversion of convertible preferred stock to common stock upon initial public offering | $ | $ 159,600,000 | |||||||||
Undesignated preferred stock shares authorized (in shares) | 200,000,000 | |||||||||
Undesignated referred stock par value (in dollars per share) | $ / shares | $ 0.001 | |||||||||
Over-Allotment Option | ||||||||||
Class of Stock [Line Items] | ||||||||||
Deferred offering costs, reclassified to stockholders' equity | $ | $ 6,400,000 | |||||||||
Class A Common Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common stock number of votes per share | vote | 1 | |||||||||
Common Stock, Conversion Basis | 1 | |||||||||
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 | 320,000,000 | |||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||||||||
Class A Common Stock | Purchase rights committed under the ESPP | ||||||||||
Class of Stock [Line Items] | ||||||||||
Percentage of purchase price of common stock to fair market value of common stock on offering or purchase date | 85.00% | |||||||||
ESPP excess rate purchase right, value | $ | $ 25,000 | |||||||||
Shares issued of common stock (in shares) | 838,395 | 923,553 | 490,268 | |||||||
Class A Common Stock | 2019 Plan | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number of shares authorized (in shares) | 58,300,889 | 58,300,889 | ||||||||
Number of additional shares authorized under the plan (in shares) | 34,000,000 | 34,000,000 | ||||||||
Class A Common Stock | 2011 Plan | ||||||||||
Class of Stock [Line Items] | ||||||||||
Other shares authorized (in shares) | 24,300,889 | 24,300,889 | ||||||||
Class A Common Stock | 2019 Employee Stock Purchase Plan | Purchase rights committed under the ESPP | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number of shares available for future issuance (in shares) | 9,000,000 | 9,000,000 | ||||||||
Class A Common Stock | Initial public offering | ||||||||||
Class of Stock [Line Items] | ||||||||||
Shares issued (in shares) | 9,911,434 | |||||||||
Conversion of convertible preferred stock to common stock upon initial public offering (in shares) | 426,223 | |||||||||
Class A Common Stock | Over-Allotment Option | ||||||||||
Class of Stock [Line Items] | ||||||||||
Shares issued (in shares) | 735,294 | 3,130,435 | ||||||||
Shares issued, price per share (in dollars per share) | $ / shares | $ 340 | $ 36 | ||||||||
Aggregate proceeds from shares issued | $ | $ 1,980,000,000 | $ 447,900,000 | ||||||||
Class A Common Stock | Private Placement | ||||||||||
Class of Stock [Line Items] | ||||||||||
Shares issued (in shares) | 2,777,777 | |||||||||
Aggregate proceeds from shares issued | $ | $ 100,000,000 | |||||||||
Class A Common Stock | Follow-On Public Offering | ||||||||||
Class of Stock [Line Items] | ||||||||||
Shares issued (in shares) | 5,882,353 | |||||||||
Class B Common Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common stock number of votes per share | vote | 10 | |||||||||
Common Stock, Conversion Basis | 1 | |||||||||
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 | 300,000,000 | |||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||||||||
Class B Common Stock | Initial public offering | ||||||||||
Class of Stock [Line Items] | ||||||||||
Conversion of convertible preferred stock to common stock upon initial public offering (in shares) | 152,665,804 |
Stockholders' Equity and Equi_4
Stockholders' Equity and Equity Incentive Plans - Schedule of Stock by Class Reserved for Future Issuance (Details) - shares | Jan. 31, 2022 | Jan. 31, 2021 |
Class of Stock [Line Items] | ||
Number of shares available for future issuance (in shares) | 80,832,845 | 68,708,474 |
Stock options | ||
Class of Stock [Line Items] | ||
Number of shares available for future issuance (in shares) | 6,195,205 | 9,239,504 |
RSUs | ||
Class of Stock [Line Items] | ||
Number of shares available for future issuance (in shares) | 5,546,366 | 4,510,730 |
ESPP | ||
Class of Stock [Line Items] | ||
Number of shares available for future issuance (in shares) | 1,784,687 | 724,883 |
2011 and 2019 Plan | ||
Class of Stock [Line Items] | ||
Number of shares available for future issuance (in shares) | 56,620,720 | 44,584,783 |
2019 Employee Stock Purchase Plan | ESPP | ||
Class of Stock [Line Items] | ||
Number of shares available for future issuance (in shares) | 10,685,867 | 9,648,574 |
Stockholders' Equity and Equi_5
Stockholders' Equity and Equity Incentive Plans - Summary of Stock Option Activity Under Equity Incentive Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Outstanding Stock Options | |||
Beginning balance (in shares) | 9,239,504 | ||
Exercised (in shares) | (2,881,485) | ||
Cancelled/forfeited/expired (in shares) | (162,814) | ||
Ending balance (in shares) | 6,195,205 | 9,239,504 | |
Vested and expected to vest (in shares) | 6,195,205 | ||
Exercisable (in shares) | 4,898,249 | ||
Weighted- Average Exercise Price | |||
Beginning balance (in dollars per share) | $ 7.17 | ||
Exercised (in dollars per share) | 5 | ||
Cancelled/forfeited/expired (in dollars per share) | 11.24 | ||
Ending balance (in dollars per share) | 8.08 | $ 7.17 | |
Weighted-average exercise price, vested and expected to vest (in dollars per share) | 8.08 | ||
Weighted-average exercise price, exercisable (in shares) | $ 5.72 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Weighted-average remaining contractual life (years) | 6 years | 7 years | |
Weighted-average remaining contractual life, vested and expected to vest | 6 years | ||
Weighted-average remaining contractual life, exercisable | 5 years 10 months 24 days | ||
Aggregate intrinsic value | $ 905,744 | $ 3,371,457 | |
Aggregate intrinsic value, exercised | 842,989 | $ 1,786,700 | $ 767,300 |
Aggregate intrinsic value, vested and expected to vest | 905,744 | ||
Aggregate intrinsic value, exercisable | $ 727,701 |
Stockholders' Equity and Equi_6
Stockholders' Equity and Equity Incentive Plans - Schedule of Assumptions for Employee Options at Grant Dates (Details) - Stock options | 12 Months Ended |
Jan. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility, minimum | 49.90% |
Expected volatility, maximum | 53.20% |
Risk-free interest rate, minimum | 1.60% |
Risk-free interest rate, maximum | 2.50% |
Expected dividend yield | 0.00% |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (years) | 5 years |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (years) | 6 years 1 month 6 days |
Stockholders' Equity and Equi_7
Stockholders' Equity and Equity Incentive Plans - Summary of Restricted Stock Units Activity Under Equity Incentive Plan (Details) - RSUs | 12 Months Ended |
Jan. 31, 2022$ / sharesshares | |
Unvested RSUs | |
Beginning balance (in units) | shares | 4,510,730 |
Granted (in units) | shares | 3,195,949 |
Vested (in units) | shares | (1,768,702) |
Cancelled/forfeited (in units) | shares | (391,611) |
Ending balance (in units) | shares | 5,546,366 |
Weighted-Average Grant Date Fair Value Per Share | |
Beginning balance (in dollars per unit) | $ / shares | $ 194.57 |
Granted (in dollars per unit) | $ / shares | 265.12 |
Vested (in dollars per unit) | $ / shares | 190.36 |
Cancelled/forfeited (in dollars per unit) | $ / shares | 250.92 |
Ending balance (in dollars per unit) | $ / shares | $ 232.58 |
Stockholders' Equity and Equi_8
Stockholders' Equity and Equity Incentive Plans - Fair Value of ESPP Purchase Rights Assumptions (Details) - Purchase rights committed under the ESPP | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility, minimum | 40.30% | 40.30% |
Expected volatility, maximum | 75.00% | 75.00% |
Risk-free interest rate, minimum | 0.00% | 0.10% |
Risk-free interest rate, maximum | 2.50% | 2.50% |
Expected dividend yield | 0.00% | 0.00% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (years) | 6 months | 6 months |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (years) | 2 years 1 month 6 days | 2 years 1 month 6 days |
Stockholders' Equity and Equi_9
Stockholders' Equity and Equity Incentive Plans - Summary of Stock-based Compensation Expense by Line Item (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 477,287 | $ 275,818 | $ 73,109 |
Benefit from income taxes | (84,245) | 0 | 0 |
Total stock-based compensation expense recorded to net income | 393,042 | 275,818 | 73,109 |
Cost of revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 69,612 | 34,960 | 7,860 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 113,000 | 50,161 | 11,645 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 229,297 | 146,377 | 41,465 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 65,378 | $ 44,320 | $ 12,139 |
Income Taxes - Components of th
Income Taxes - Components of the Net Income (Loss) before Provision of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 1,047,318 | $ 663,909 | $ 16,268 |
Foreign | 54,314 | 14,125 | 10,094 |
Total | $ 1,101,632 | $ 678,034 | $ 26,362 |
Income Taxes - Schedule of Curr
Income Taxes - Schedule of Current and Deferred Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Current: | |||
Federal | $ 69,853 | $ 0 | $ 0 |
State | 20,174 | 1,023 | 14 |
Foreign | 12,027 | 3,933 | 2,226 |
Total current income tax expense | 102,054 | 4,956 | 2,240 |
Deferred: | |||
Federal | (293,704) | 689 | 0 |
State | (82,561) | 248 | 0 |
Foreign | 204 | (175) | (1,183) |
Deferred income tax expense (benefit), total | (376,061) | 762 | (1,183) |
Total (benefit from) provision for income taxes | $ (274,007) | $ 5,718 | $ 1,057 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Tax at federal statutory rate | $ 231,350 | $ 142,387 | $ 5,536 |
State taxes | 24,840 | 636 | 14 |
Foreign rate differential | 1,830 | 89 | (2,096) |
Stock-based compensation | (135,250) | (302,362) | (32,070) |
Foreign-derived intangible income deduction | (34,131) | 0 | 0 |
Permanent items | 3,971 | 2,228 | 1,009 |
Research and development credits | (42,973) | (3,170) | (2,808) |
Tax uncertainties | 244 | (607) | 1,019 |
Change in valuation allowance | (322,231) | 165,869 | 30,932 |
Other | (1,658) | 648 | (479) |
Total (benefit from) provision for income taxes | $ (274,007) | $ 5,718 | $ 1,057 |
Effective tax rate | (24.90%) | 0.80% | 4.00% |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Income Tax Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Deferred Tax Assets, Net [Abstract] | ||
Net operating loss carryforwards | $ 21,558 | $ 341,487 |
Research and development credit carryforwards | 9,985 | 12,191 |
Stock-based compensation | 44,490 | 37,255 |
Accruals and reserves | 14,475 | 29,195 |
Deferred revenue | 260,322 | 6,565 |
Capitalized research expenditures | 131,010 | 0 |
Operating lease liabilities | 25,892 | 27,842 |
Total deferred tax assets | 507,732 | 454,535 |
Valuation allowance | (12,605) | (335,051) |
Total deferred tax assets net of valuation allowance | 495,127 | 119,484 |
Deferred Tax Liabilities, Net [Abstract] | ||
Property and equipment and intangible assets | (26,733) | (17,229) |
Deferred contract acquisition costs | (62,814) | (76,593) |
Operating right-of-use assets | (23,466) | (25,550) |
Total deferred tax liabilities | (113,013) | (119,372) |
Net deferred tax assets | $ 382,114 | $ 112 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Tax Credit Carryforward [Line Items] | ||||
Increase (decrease) of valuation allowance | $ 327,957 | $ 0 | $ 0 | |
Deferred tax asset valuation allowance | 12,605 | 335,051 | ||
Unrecognized tax benefits | 19,171 | 14,884 | 8,106 | $ 2,778 |
Unrecognized tax benefits, if recognized, would impact effective tax rate | 19,600 | 15,000 | 8,400 | |
Interest and penalties | 400 | $ 100 | $ 300 | |
State Income Tax | ||||
Tax Credit Carryforward [Line Items] | ||||
Operating loss carryforward | 122,300 | |||
State Income Tax | Research and Development Credit Carryforward | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforward | 18,400 | |||
Foreign Tax | ||||
Tax Credit Carryforward [Line Items] | ||||
Operating loss carryforward | $ 44,200 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Position (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $ 14,884 | $ 8,106 | $ 2,778 |
Tax Positions taken in prior year, gross increases | 0 | 314 | 0 |
Tax Positions taken in prior year, gross decreases | (3,764) | 0 | 0 |
Tax Positions taken in current year, gross increases | 8,211 | 6,001 | 5,328 |
Tax Positions taken in current year, gross decreases | 0 | 0 | 0 |
Lapse of Statute of Limitations | (160) | (422) | 0 |
Acquisitions | 0 | 885 | 0 |
Ending Balance | $ 19,171 | $ 14,884 | $ 8,106 |
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 | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Earnings Per Share, Basic [Abstract] | |||
Net income | $ 1,375,639 | $ 672,316 | $ 25,305 |
Less: undistributed earnings attributable to participating securities | (582) | (789) | (3,555) |
Net income attributable to common stockholders | $ 1,375,057 | $ 671,527 | $ 21,750 |
Earnings Per Share, Diluted [Abstract] | |||
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, basic (in shares) | 296,334,894 | 283,853,654 | 233,641,336 |
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, diluted (in shares) | 305,826,505 | 298,127,669 | 254,298,014 |
Net income (loss) per share attributable to common stockholders, basic (in dollars per share) | $ 4.64 | $ 2.37 | $ 0.09 |
Net income (loss) per share attributable to common stockholders, diluted (in dollars per share) | $ 4.50 | $ 2.25 | $ 0.09 |
Class A Common Stock | |||
Earnings Per Share, Basic [Abstract] | |||
Net income | $ 1,105,368 | $ 432,968 | $ 5,450 |
Less: undistributed earnings attributable to participating securities | 0 | 0 | 0 |
Net income attributable to common stockholders | 1,105,368 | 432,968 | 5,450 |
Reallocation of net income attributable to common stockholders | (23,891) | (14,321) | (439) |
Net income attributable to common stockholders, diluted | $ 1,081,477 | $ 418,647 | $ 5,011 |
Earnings Per Share, Diluted [Abstract] | |||
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, basic (in shares) | 238,214,936 | 183,015,245 | 58,541,269 |
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, diluted (in shares) | 240,531,470 | 185,860,412 | 58,583,874 |
Net income (loss) per share attributable to common stockholders, basic (in dollars per share) | $ 4.64 | $ 2.37 | $ 0.09 |
Net income (loss) per share attributable to common stockholders, diluted (in dollars per share) | $ 4.50 | $ 2.25 | $ 0.09 |
Class B Common Stock | |||
Earnings Per Share, Basic [Abstract] | |||
Net income | $ 270,271 | $ 239,348 | $ 19,855 |
Less: undistributed earnings attributable to participating securities | (582) | (789) | (3,555) |
Net income attributable to common stockholders | 269,689 | 238,559 | 16,300 |
Reallocation of net income attributable to common stockholders | 23,891 | 14,321 | 439 |
Net income attributable to common stockholders, diluted | $ 293,580 | $ 252,880 | $ 16,739 |
Earnings Per Share, Diluted [Abstract] | |||
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, basic (in shares) | 58,119,958 | 100,838,409 | 175,100,067 |
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, diluted (in shares) | 65,295,035 | 112,267,257 | 195,714,140 |
Net income (loss) per share attributable to common stockholders, basic (in dollars per share) | $ 4.64 | $ 2.37 | $ 0.09 |
Net income (loss) per share attributable to common stockholders, diluted (in dollars per share) | $ 4.50 | $ 2.25 | $ 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 (Loss) Per Share Attributable to Common Stockholders (Details) - shares | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 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) | 1,256,967 | 165,336 | 1,929,417 |
Class A Common Stock | Outstanding stock options | |||
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 | 51,444 | 141,782 |
Class A Common Stock | Unvested RSUs | |||
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) | 1,015,860 | 98,941 | 606,971 |
Class A Common Stock | Purchase rights committed under the ESPP | |||
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) | 241,107 | 14,951 | 1,180,664 |
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 | 0 |
Class B Common Stock | Outstanding stock options | |||
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 | 0 |
Class B Common Stock | Unvested RSUs | |||
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 | |
Class B Common Stock | Purchase rights committed under the ESPP | |||
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 |
Net Income Per Share Attribut_5
Net Income Per Share Attributable to Common Stockholders - Narrative (Details) - Class A Common Stock - shares | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Issuance of common stock reserved for charitable donation (in shares) | 1,256,967 | 165,336 | 1,929,417 |
Shares Reserved For Transfer To Nonprofit Organizations | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Issuance of common stock reserved for charitable donation (in shares) | 405,156 | 405,156 | 500,000 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) | Mar. 06, 2022 | Feb. 28, 2022 |
Subsequent Event [Line Items] | ||
Stock repurchase program, amount authorized | $ 1,000,000,000 | |
Remaining authorized repurchase amount | $ 997,100,000 |
Schedule II_ Valuation and Qu_2
Schedule II: Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Accounts receivable allowances | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 36,844 | $ 7,634 | $ 2,071 |
Additions | 50,467 | 47,405 | 8,583 |
Write-offs or Deductions | (62,615) | (18,195) | (3,020) |
Balance at End of Year | 24,696 | 36,844 | 7,634 |
Deferred tax asset valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 335,051 | 36,353 | 877 |
Additions | 5,511 | 298,698 | 35,476 |
Write-offs or Deductions | (327,957) | 0 | 0 |
Balance at End of Year | $ 12,605 | $ 335,051 | $ 36,353 |