Cover
Cover - shares | 3 Months Ended | |
Apr. 30, 2024 | May 10, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 30, 2024 | |
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, $0.001 par value per share | |
Trading Symbol | ZM | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2025 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001585521 | |
Current Fiscal Year End Date | --01-31 | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 263,616,605 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 45,660,427 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 30, 2024 | Jan. 31, 2024 |
Current assets: | ||
Cash and cash equivalents | $ 1,885,603 | $ 1,558,252 |
Marketable securities | 5,488,737 | 5,404,233 |
Accounts receivable, net of allowances of $22,009 and $32,371 as of April 30, 2024 and January 31, 2024, respectively | 527,515 | 536,078 |
Deferred contract acquisition costs, current | 198,113 | 208,474 |
Prepaid expenses and other current assets | 182,077 | 219,182 |
Total current assets | 8,282,045 | 7,926,219 |
Deferred contract acquisition costs, noncurrent | 121,087 | 138,724 |
Property and equipment, net | 304,712 | 293,704 |
Operating lease right-of-use assets | 55,750 | 58,975 |
Strategic investments | 424,923 | 409,222 |
Goodwill | 307,295 | 307,295 |
Deferred tax assets | 673,808 | 662,177 |
Other assets, noncurrent | 127,010 | 133,477 |
Total assets | 10,296,630 | 9,929,793 |
Current liabilities: | ||
Accounts payable | 18,315 | 10,175 |
Accrued expenses and other current liabilities | 501,799 | 500,164 |
Deferred revenue, current | 1,335,787 | 1,251,848 |
Total current liabilities | 1,855,901 | 1,762,187 |
Deferred revenue, noncurrent | 16,405 | 18,514 |
Operating lease liabilities, noncurrent | 40,284 | 48,308 |
Other liabilities, noncurrent | 85,216 | 81,378 |
Total liabilities | 1,997,806 | 1,910,387 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value per share, 2,000,000,000 Class A shares authorized as of April 30, 2024 and January 31, 2024; 263,636,337 and 260,896,822 shares issued and outstanding as of April 30, 2024 and January 31, 2024, respectively; 300,000,000 Class B shares authorized as of April 30, 2024 and January 31, 2024; 45,632,347 and 46,661,531 shares issued and outstanding as of April 30, 2024 and January 31, 2024, respectively | 309 | 307 |
Additional paid-in capital | 5,310,417 | 5,228,756 |
Accumulated other comprehensive (loss) income | (17,490) | 1,063 |
Retained earnings | 3,005,588 | 2,789,280 |
Total stockholders’ equity | 8,298,824 | 8,019,406 |
Total liabilities and stockholders’ equity | $ 10,296,630 | $ 9,929,793 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Apr. 30, 2024 | Jan. 31, 2024 |
Current assets: | ||
Accounts receivable, allowances | $ 22,009 | $ 32,371 |
Stockholders’ equity: | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Class A Common Stock | ||
Stockholders’ equity: | ||
Common stock, par value (in dollars per share) | $ 0.001 | |
Common stock, authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, issued (in shares) | 263,636,337 | 260,896,822 |
Common stock, outstanding (in shares) | 263,636,337 | 260,896,822 |
Class B Common Stock | ||
Stockholders’ equity: | ||
Common stock, par value (in dollars per share) | $ 0.001 | |
Common stock, authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, issued (in shares) | 45,632,347 | 46,661,531 |
Common stock, outstanding (in shares) | 45,632,347 | 46,661,531 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Income Statement [Abstract] | ||
Revenue | $ 1,141,234 | $ 1,105,364 |
Cost of revenue | 273,302 | 263,947 |
Gross profit | 867,932 | 841,417 |
Operating expenses: | ||
Research and development | 205,558 | 209,271 |
Sales and marketing | 348,008 | 422,504 |
General and administrative | 111,344 | 199,900 |
Total operating expenses | 664,910 | 831,675 |
Income from operations | 203,022 | 9,742 |
Gains on strategic investments, net | 17,354 | 2,275 |
Other income, net | 71,588 | 31,213 |
Income before provision for income taxes | 291,964 | 43,230 |
Provision for income taxes | 75,656 | 27,786 |
Net income | $ 216,308 | $ 15,444 |
Net income per share: | ||
Basic (in dollars per share) | $ 0.70 | $ 0.05 |
Diluted (in dollars per share) | $ 0.69 | $ 0.05 |
Weighted-average shares used in computing net income per share: | ||
Basic (in shares) | 308,700,582 | 295,409,207 |
Diluted (in shares) | 315,360,678 | 304,115,913 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 216,308 | $ 15,444 |
Other comprehensive (loss) income: | ||
Unrealized (loss) gain on available-for-sale marketable securities, net of income tax benefit (expense) of $5,692 and $(4,674) for the three months ended April 30, 2024 and 2023, respectively | (18,553) | 15,514 |
Comprehensive income | $ 197,755 | $ 30,958 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized gain (loss) on available for sale marketable securities, tax effect | $ 5,692 | $ (4,674) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Beginning balance (in shares) at Jan. 31, 2023 | 293,822,850 | ||||
Beginning balance at Jan. 31, 2023 | $ 6,206,607 | $ 294 | $ 4,104,880 | $ (50,385) | $ 2,151,818 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options (in shares) | 501,968 | ||||
Issuance of common stock upon exercise of stock options | 4,269 | $ 1 | 4,268 | ||
Issuance of common stock upon release of restricted stock units (in shares) | 3,130,908 | ||||
Issuance of common stock upon release of restricted stock units | 0 | $ 3 | (3) | ||
Stock-based compensation expense | 282,273 | 282,273 | |||
Other comprehensive (loss) income | 15,514 | 15,514 | |||
Net income | 15,444 | 15,444 | |||
Ending balance (in shares) at Apr. 30, 2023 | 297,455,726 | ||||
Ending balance at Apr. 30, 2023 | 6,524,107 | $ 298 | 4,391,418 | (34,871) | 2,167,262 |
Beginning balance (in shares) at Jan. 31, 2024 | 307,558,353 | ||||
Beginning balance at Jan. 31, 2024 | $ 8,019,406 | $ 307 | 5,228,756 | 1,063 | 2,789,280 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options (in shares) | 109,464 | 109,464 | |||
Issuance of common stock upon exercise of stock options | $ 1,016 | 1,016 | |||
Issuance of common stock upon release of restricted stock units (in shares) | 4,001,172 | ||||
Issuance of common stock upon release of restricted stock units | 0 | $ 4 | (4) | ||
Repurchases of common stock (in shares) | (2,400,305) | ||||
Repurchases of common stock | (150,048) | $ (2) | (150,046) | ||
Stock-based compensation expense | 230,695 | 230,695 | |||
Other comprehensive (loss) income | (18,553) | (18,553) | |||
Net income | 216,308 | 216,308 | |||
Ending balance (in shares) at Apr. 30, 2024 | 309,268,684 | ||||
Ending balance at Apr. 30, 2024 | $ 8,298,824 | $ 309 | $ 5,310,417 | $ (17,490) | $ 3,005,588 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 216,308 | $ 15,444 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation expense | 229,425 | 282,345 |
Amortization of deferred contract acquisition costs | 68,125 | 73,230 |
Depreciation and amortization | 26,667 | 24,076 |
Deferred income taxes | (7,952) | 21,511 |
Gains on strategic investments, net | (17,354) | (2,275) |
Provision for accounts receivable allowances | 6,782 | 15,433 |
Unrealized foreign exchange losses | 7,237 | 3,316 |
Non-cash operating lease cost | 5,368 | 5,381 |
Amortization of discount/premium on marketable securities | (17,668) | (6,765) |
Other | 98 | (5,471) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 12,260 | (29,101) |
Prepaid expenses and other assets | 35,839 | (6,659) |
Deferred contract acquisition costs | (40,128) | (46,338) |
Accounts payable | 7,276 | 1,881 |
Accrued expenses and other liabilities | (14,942) | 24,640 |
Deferred revenue | 77,964 | 53,340 |
Operating lease liabilities, net | (7,114) | (5,501) |
Net cash provided by operating activities | 588,191 | 418,487 |
Cash flows from investing activities: | ||
Purchases of marketable securities | (867,911) | (768,230) |
Maturities of marketable securities | 776,941 | 559,686 |
Purchases of property and equipment | (18,508) | (21,826) |
Purchases of strategic investments | (3,000) | (51,000) |
Proceeds from strategic investments | 4,654 | 0 |
Cash paid for acquisition, net of cash acquired | 0 | (199,416) |
Net cash used in investing activities | (107,824) | (480,786) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 1,016 | 4,268 |
Proceeds from employee equity transactions to be remitted to employees and tax authorities, net | 6,581 | 2,751 |
Cash paid for repurchases of common stock | (150,048) | 0 |
Net cash (used in) provided by financing activities | (142,451) | 7,019 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (6,852) | (2,553) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 331,064 | (57,833) |
Cash, cash equivalents, and restricted cash – beginning of period | 1,565,380 | 1,100,243 |
Cash, cash equivalents, and restricted cash – end of period | 1,896,444 | 1,042,410 |
Reconciliation of cash, cash equivalents, and restricted cash within the condensed consolidated balance sheets to the amounts shown in the condensed consolidated statements of cash flows above: | ||
Cash and cash equivalents | 1,885,603 | 1,029,546 |
Restricted cash, current included in prepaid expenses and other current assets | 10,588 | 12,610 |
Restricted cash, noncurrent included in other assets, noncurrent | 253 | 254 |
Total cash, cash equivalents, and restricted cash | $ 1,896,444 | $ 1,042,410 |
Summary of Business and Signifi
Summary of Business and Significant Accounting Policies | 3 Months Ended |
Apr. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Business and Significant Accounting Policies | Summary of Business and Significant Accounting Policies Description of Business Zoom Video Communications, Inc. and its subsidiaries (collectively, “Zoom,” the “Company,” “we,” “us,” or “our”) provide a workplace collaboration platform that connects people through frictionless and secure meetings, phone, chat, content sharing and more. 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 2025, for example, refer to the fiscal year ending January 31, 2025. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and applicable regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting, and include the accounts of Zoom Video Communications, Inc., its subsidiaries, and variable interest entities for which we are the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated balance sheet as of January 31, 2024 included herein was derived from the audited financial statements as of that date, but does not include all disclosures, including certain notes required by GAAP on an annual reporting basis. The unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the balance sheets, statements of operations, statements of comprehensive income, statements of stockholders’ equity, and statements of cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year or any future period. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended January 31, 2024, filed with the SEC on March 4, 2024. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Significant items subject to such estimates and assumptions include, but are not limited to, the estimated expected benefit period for deferred contract acquisition costs, stock-based compensation expense, 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. Summary of Significant Accounting Policies Our significant accounting policies are discussed in Note 1. “Summary of Business and Significant Accounting Policies” in the notes to consolidated financial statements included in our Annual Report on Form 10-K for the year ended January 31, 2024, filed with the SEC on March 4, 2024. Except for an update to our stock-based compensation policy covering our recently granted restricted stock units (“RSUs”) that contain both service and performance conditions as noted below, there have been no significant changes to these policies during the three months ended April 30, 2024. Stock-Based Compensation Stock-based compensation expense related to stock awards with only service conditions, including stock options, RSUs, and employee stock purchase plan (“ESPP”), are 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. For RSU’s with service and performance conditions, expense is recognized over the requisite service period if it is probable the performance condition will be achieved. The probability of achievement is assessed quarterly, and the effect of any change in the estimated number of performance-based awards expected to vest is recognized in the period those estimates are revised as a cumulative catch-up adjustment to stock-based compensation expense. 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 use of 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 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. Recent Accounting Pronouncements Not Yet Adopted In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which aims to improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis to enable investors to develop more decision-useful financial analyses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. This ASU will likely result in us including the additional required disclosures when adopted. We are currently evaluating the impact from the adoption of this ASU on our consolidated financial statements and will adopt it for the year ending January 31, 2025. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which aims to improve the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 and early adoption is permitted. We are currently evaluating the impact from the adoption of this ASU on our consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Apr. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregation of Revenue The following table summarizes revenue by region based on the billing address of customers: Three Months Ended April 30, 2024 2023 Amount Percentage of Amount Percentage of (in thousands, except percentages) Americas $ 818,683 71.7 % $ 784,597 71.0 % Asia Pacific (“APAC”) 138,314 12.1 140,870 12.7 Europe, Middle East, and Africa (“EMEA”) 184,237 16.2 179,897 16.3 Total $ 1,141,234 100.0 % $ 1,105,364 100.0 % 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 was $137.7 million and $124.8 million as of April 30, 2024 and January 31, 2024, respectively, and the amount of unbilled accounts receivable included within other assets, noncurrent was immaterial as of April 30, 2024 and January 31, 2024. Contract liabilities consist of deferred revenue. Revenue is deferred when we have the right to invoice in advance of performance under a customer contract. The current portion of deferred revenue balances is recognized over the next 12 months. The amount of revenue recognized during the three months ended April 30, 2024 and 2023 that was included in deferred revenue at the beginning of each period was $592.5 million and $576.8 million, respectively. Remaining Performance Obligations The terms of our subscription agreements are monthly, annual, and multiyear, and we may bill for the full term in advance or on an annual, quarterly, or monthly basis, depending on the billing terms with customers. As of April 30, 2024, the aggregate amount of the transaction price allocated to our remaining performance obligations was $3,665.7 million, which consists of both billed consideration in the amount of $1,352.2 million and unbilled consideration in the amount of $2,313.5 million that we expect to recognize as revenue. We expect to recognize 59% of our remaining performance obligations as revenue over the next 12 months and the remainder thereafter. |
Investments
Investments | 3 Months Ended |
Apr. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Marketable Securities As of April 30, 2024 and January 31, 2024, our marketable securities consisted of the following: As of April 30, 2024 Amortized Gross Gross Estimated (in thousands) Commercial paper $ 19,737 $ — $ — $ 19,737 Agency bonds 1,752,707 24 (6,482) 1,746,249 Corporate and other debt securities 652,318 104 (2,633) 649,789 U.S. government agency securities 3,032,764 4 (14,488) 3,018,280 Treasury bills 54,727 — (45) 54,682 Marketable securities $ 5,512,253 $ 132 $ (23,648) $ 5,488,737 As of January 31, 2024 Amortized Gross Gross Estimated (in thousands) Commercial paper $ 41,564 $ — $ — $ 41,564 Agency bonds 1,667,601 2,426 (3,344) 1,666,683 Corporate and other debt securities 663,122 1,161 (1,124) 663,159 U.S. government agency securities 3,003,224 7,859 (6,241) 3,004,842 Treasury bills 27,992 — (7) 27,985 Marketable securities $ 5,403,503 $ 11,446 $ (10,716) $ 5,404,233 Unrealized losses for securities that have been in an unrealized loss position for less than 12 months were $21.8 million and $6.0 million as of April 30, 2024 and January 31, 2024, respectively. Unrealized losses for securities that have been in an unrealized loss position for 12 months or longer were $1.9 million and $4.8 million as of April 30, 2024 and January 31, 2024, respectively. We review the individual securities that have unrealized losses on a regular basis to evaluate whether or not any security has experienced, or is expected to experience, credit losses resulting in the decline in fair value. We evaluate, among other factors, whether we have the intention to sell any of these marketable securities and whether it is more likely than not that we will be required to sell any of them before recovery of the amortized cost basis. We have not recorded an allowance for credit losses, as we believe any such losses would be immaterial based on the high-grade credit rating for each of our marketable securities as of the end of each period. There were no material realized gains or losses from available-for-sale securities that were reclassified out of accumulated other comprehensive loss for the three months ended April 30, 2024 and 2023. The following table presents the contractual maturities of our marketable securities as of April 30, 2024 and January 31, 2024: As of April 30, 2024 January 31, 2024 (in thousands) Less than one year $ 3,017,465 $ 2,883,598 Due in one to five years 2,471,272 2,520,635 Total $ 5,488,737 $ 5,404,233 Strategic Investments Strategic investments by form and measurement category as of April 30, 2024 were as follows: Measurement Category Fair Value Measurement Alternative Equity Method Total (in thousands) Equity securities $ 24,200 $ 299,651 $ 97,208 $ 421,059 Debt securities 3,864 — — 3,864 Strategic investments $ 28,064 $ 299,651 $ 97,208 $ 424,923 Strategic investments by form and measurement category as of January 31, 2024 were as follows: Measurement Category Fair Value Measurement Alternative Equity Method Total (in thousands) Equity securities $ 23,160 $ 285,509 $ 96,725 $ 405,394 Debt securities 3,828 — — 3,828 Strategic investments $ 26,988 $ 285,509 $ 96,725 $ 409,222 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables present information about our financial instruments that are measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value: As of April 30, 2024 Fair Value Level 1 Level 2 Level 3 (in thousands) Financial Assets: Money market funds $ 1,347,656 $ 1,347,656 $ — $ — Treasury bills 40,325 — 40,325 — Commercial paper 9,466 — 9,466 — U.S. government agency securities 3,504 — 3,504 — Cash equivalents 1,400,951 1,347,656 53,295 — Commercial paper 19,737 — 19,737 — Agency bonds 1,746,249 — 1,746,249 — Corporate and other debt securities 649,789 — 649,789 — U.S. government agency securities 3,018,280 — 3,018,280 — Treasury bills 54,682 — 54,682 — Marketable securities 5,488,737 — 5,488,737 — Certificates of deposit included in other assets, noncurrent 253 — 253 — Publicly held equity securities included in strategic investments 24,200 24,200 — — Privately held debt securities included in strategic investments 3,864 — — 3,864 Total financial assets $ 6,918,005 $ 1,371,856 $ 5,542,285 $ 3,864 As of January 31, 2024 Fair Value Level 1 Level 2 Level 3 (in thousands) Financial Assets: Money market funds $ 851,100 $ 851,100 $ — $ — Treasury bills 100,629 — 100,629 — Corporate debt securities 2,715 — 2,715 — Agency bonds 20,155 — 20,155 — Cash equivalents 974,599 851,100 123,499 — Commercial paper 41,564 — 41,564 — Agency bonds 1,666,683 — 1,666,683 — Corporate and other debt securities 663,159 — 663,159 — U.S. government agency securities 3,004,842 — 3,004,842 — Treasury bills 27,985 — 27,985 — Marketable securities 5,404,233 — 5,404,233 — Certificates of deposit included in other assets, noncurrent 254 — 254 — Publicly held equity securities included in strategic investments 23,160 23,160 — — Privately held debt securities included in strategic investments 3,828 — — 3,828 Total financial assets $ 6,406,074 $ 874,260 $ 5,527,986 $ 3,828 We classify our highly liquid money market funds and publicly held equity securities within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. We classify our commercial paper, agency bonds, corporate and other debt securities, U.S. government agency securities, treasury bills, and certificates of deposit within Level 2 because they are valued using inputs other than quoted prices that are directly or indirectly observable in the market, including readily available pricing sources for the identical underlying security, which may not be actively traded. We classify our privately held debt securities as Level 3 due to the lack of relevant observable market data over fair value inputs, such as the probability weighting of the various scenarios that can impact settlement of the arrangement. |
Business Combinations
Business Combinations | 3 Months Ended |
Apr. 30, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business Combinations Workvivo Limited On April 21, 2023, we acquired 100% of the issued and outstanding share capital of Workvivo Limited (“Workvivo”), a private technology company that provides an employee experience platform, for an all-cash purchase consideration of $221.8 million. The acquisition extends our platform and offers our customers new ways to keep employees informed, engaged, and connected. The acquisition has been accounted for as a business combination. In allocating the purchase consideration, $184.7 million was attributed to goodwill, $28.0 million to intangible assets (primarily consisting of $10.8 million to developed technology and $17.0 million to customer relationships), and $9.1 million to other net assets acquired. 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. At the date of the acquisition, the developed technology and customer relationships both had an estimated useful life of 5.0 years, and both are amortized using the straight-line method over their respective estimated useful lives. Amortization of developed technology and customer relationships is recorded within cost of revenue and sales and marketing expense, respectively, within the condensed consolidated statements of operations. As of April 30, 2024, the developed technology and customer relationships both had a remaining useful life of 4.0 years. Transaction costs incurred in connection with the acquisition were immaterial. The results of operations of Workvivo, which are not material, have been included in our condensed consolidated financial statements from the date of the acquisition. Pro forma and historical results of operations of the company have not been presented, as the results do not have a material effect on any of the periods presented in our condensed consolidated statements of operations. |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Apr. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | Balance Sheet Components Accounts Receivable, Net Accounts receivable are recorded for invoiced amounts and amounts for which revenue has been recognized, but not invoiced, net of allowances. Our short-term accounts receivable consist of the following: As of April 30, 2024 January 31, 2024 (in thousands) Accounts receivable, gross $ 549,524 $ 568,449 Less: allowance for credit losses (17,011) (25,916) Less: allowance for returns (4,998) (6,455) Accounts receivable, net $ 527,515 $ 536,078 Below is a rollforward of our allowance for credit losses for the three months ended April 30, 2024 and 2023: 2024 2023 (in thousands) Balance as of January 31 $ 25,916 $ 24,900 Provision for credit losses 4,533 21,737 Write-offs (13,438) (8,516) Balance as of April 30 $ 17,011 $ 38,121 Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: As of April 30, 2024 January 31, 2024 (in thousands) Prepaid expenses $ 151,427 $ 188,259 Restricted cash 10,588 6,874 Other 20,062 24,049 Prepaid expenses and other current assets $ 182,077 $ 219,182 Property and Equipment, Net Property and equipment consisted of the following: As of April 30, 2024 January 31, 2024 (in thousands) Servers $ 360,672 $ 340,868 Software 101,639 95,409 Computer and office equipment 43,057 44,571 Leasehold improvements 49,329 43,981 Furniture and fixtures 5,213 5,192 Property and equipment, gross 559,910 530,021 Less: accumulated depreciation and amortization (255,198) (236,317) Property and equipment, net $ 304,712 $ 293,704 Depreciation and amortization expense was $23.3 million and $22.0 million for the three months ended April 30, 2024 and 2023, respectively. Other Assets, Noncurrent Other assets, noncurrent consisted of the following: As of April 30, 2024 January 31, 2024 (in thousands) Accounts receivable, noncurrent $ 18,073 $ 26,099 Intangible assets subject to amortization, net 43,609 46,935 Indefinite-lived intangible assets 25,239 25,239 Prepaid expenses, noncurrent 28,297 23,351 Other 11,792 11,853 Other assets, noncurrent $ 127,010 $ 133,477 Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: As of April 30, 2024 January 31, 2024 (in thousands) Accrued expenses $ 172,398 $ 173,993 Accrued compensation and benefits 127,708 185,128 Income tax liabilities 71,257 21,880 Sales and other non-income tax liabilities 33,664 35,460 Customer deposit liabilities 44,065 40,142 Operating lease liabilities, current 27,572 24,645 Other 25,135 18,916 Accrued expenses and other current liabilities $ 501,799 $ 500,164 Other Liabilities, Noncurrent Other liabilities, noncurrent consisted of the following: As of April 30, 2024 January 31, 2024 (in thousands) Sales and other non-income tax liabilities $ 42,515 $ 42,254 Long-term income tax liabilities 37,060 33,864 Other 5,641 5,260 Other liabilities, noncurrent $ 85,216 $ 81,378 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Non-cancelable Purchase Obligations During the three months ended April 30, 2024, there have been no material changes to our non-cancelable purchase obligations from those disclosed in Note 9. “Commitments and Contingencies” in the notes to consolidated financial statements included in our Annual Report on Form 10-K for the year ended January 31, 2024 filed with the SEC on March 4, 2024. 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 responding to law enforcement requests from the Chinese government. 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, as well as reputational harm. Legal Proceedings 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. 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. The consolidated case was stayed pending resolution of the motion to dismiss the securities class action. On April 11, 2023, the court entered a stipulated order that requires defendants to answer, move, or otherwise respond to the operative complaint by June 12, 2023. On June 12, 2023, defendants filed a motion to dismiss the consolidated case. On August 11, 2023, the plaintiff in the consolidated case filed an amended complaint. On October 18, 2023, defendants filed their motion to dismiss the amended complaint. On October 18, 2023, defendants filed their motion to dismiss the amended complaint. On December 22, 2023, plaintiff filed her opposition to the motion to dismiss, and on January 26, 2024, defendants filed their reply in support of the motion to dismiss. We are vigorously defending ourselves against these lawsuits. Given the uncertainty of litigation 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. 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 ours. The complaints allege, among other things, that we violated Sections 10(b) and 20(a) of the Exchange Act, and Rule 10b-5 by making false and misleading statements and omissions of material fact about our data privacy and security measures. The complaints seek unspecified damages, interest, fees, and costs. On May 18, 2020, the actions were consolidated. On November 4, 2020, the court appointed a lead plaintiff. On December 23, 2020, the lead plaintiff filed a consolidated complaint. We filed a motion to dismiss the consolidated complaint on May 20, 2021. Plaintiff 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, 2022, the court granted in part, and denied in part, our motion to dismiss. On March 14, 2022, we moved for reconsideration of the court’s ruling on the motion to dismiss. On March 22, 2022, the court ordered plaintiff to respond to our motion, which plaintiff did on March 29, 2022. On April 22, 2022, we answered the complaint. On March 8, 2023, the court denied our motion for reconsideration. On April 6, 2023, the court entered a scheduling order. On July 17, 2023, the parties entered into a stipulation and agreement of settlement (the “Stipulation”) to resolve this matter. Under the terms of the stipulation, in exchange for the release and dismissal with prejudice of all claims against all defendants in the matter, we have agreed to pay and/or cause our insurance carriers to pay a total of $150.0 million. The Stipulation and settlement remain subject to preliminary and final approval by the court. On July 25, 2023, the court entered an order staying further proceedings in the matter pending the filing of a motion for preliminary approval of the settlement. On October 17, 2023, lead plaintiff filed a motion for preliminary approval of the settlement. A hearing on the motion for preliminary approval of the settlement is scheduled for June 13, 2024. As a result of the settlement, we made net payments of $60.0 million ($150.0 million for the settlement net of $90.0 million covered by insurance) during the fiscal year ended January 31, 2024, of which $7.5 million had been accrued during the year ended January 31, 2023 and $52.5 million was recorded as a general and administrative expense in our consolidated statement of operations for the fiscal year ended January 31, 2024. |
Stockholders_ Equity and Equity
Stockholders’ Equity and Equity Incentive Plans | 3 Months Ended |
Apr. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Stockholders’ Equity and Equity Incentive Plans | Stockholders’ Equity and Equity Incentive Plans Common Stock Our amended and restated certificate of incorporation authorizes the issuance of 2,000,000,000 shares of Class A common stock, $0.001 par value per share, and 300,000,000 shares of Class B common stock, $0.001 par value per share. Class A and Class B common stock are referred to as common stock throughout the notes to the condensed consolidated financial statements, unless otherwise noted. Stock Repurchase Program In February 2024, our Board of Directors authorized a stock repurchase program of up to $1.5 billion of our Class A common stock. Repurchases of our Class A common stock may be effected from time to time, either on the open market (including preset trading plans), in privately negotiated transactions, and other transactions in accordance with applicable securities laws. The program does not obligate us to repurchase any specific number of shares and may be discontinued at any time. During the three months ended April 30, 2024, we repurchased and subsequently retired 2,400,305 shares of our Class A common stock for an aggregate amount of $150.0 million. As of April 30, 2024 , $1,350.0 million of the repurchase authorization remained available. Equity Incentive Plans We have two equity incentive plans: the 2011 Global Share Plan (“2011 Plan”) and the 2019 Equity Incentive Plan (“2019 Plan”). All shares that remain available for future grants are under the 2019 Plan. Stock Options A summary of stock option activity under our equity incentive plan and related information is as follows: Stock Options Outstanding Weighted- Weighted- Aggregate (in thousands, except share, life, and per share data) Balance as of January 31, 2024 3,314,228 $ 8.21 3.9 $ 189,921 Exercised (109,464) $ 9.28 $ 6,146 Canceled/forfeited/expired (1,875) $ 94.87 Outstanding and exercisable as of April 30, 2024 3,202,889 $ 8.12 3.7 $ 172,975 As of April 30, 2024, all options have vested and there is no unrecognized stock-based compensation expense remaining. Restricted Stock Units A summary of RSU activity under our equity incentive plan and related information is as follows: RSUs RSUs Weighted- Unvested as of January 31, 2024 26,040,557 $ 83.14 Granted 5,073,584 $ 64.56 Vested (4,001,172) $ 84.99 Canceled/forfeited (1,099,816) $ 83.83 Unvested as of April 30, 2024 26,013,153 $ 79.20 As of April 30, 2024, unrecognized stock-based compensation expense related to RSUs was $1,787.9 million, which is expected to be recognized over a weighted-average period of 2.6 years. For the three months ended April 30, 2024, we granted 1.7 million RSUs that contain both service and performance vesting criteria. The ultimate number of shares eligible to vest pursuant to these RSUs range from 0% to 100% of the target number of shares depending on achievement of the performance metrics. The number of RSUs with service and performance vesting conditions included in the granted amount in the table above reflects the shares that would be eligible to vest at 100% of the target amount. 2019 Employee Stock Purchase Plan In April 2019, we adopted the 2019 ESPP. As of April 30, 2024, unrecognized stock-based compensation expense related to the ESPP was $26.8 million, which is expected to be recognized over a weighted-average period of 1.0 year. Stock-Based Compensation The stock-based compensation expense by line item in the accompanying condensed consolidated statements of operations is summarized as follows: Three Months Ended April 30, 2024 2023 (in thousands) Cost of revenue $ 31,575 $ 38,089 Research and development 82,569 81,466 Sales and marketing 77,234 112,593 General and administrative 38,047 50,197 Total stock-based compensation expense $ 229,425 $ 282,345 Benefit from income taxes (43,474) (49,677) Total stock-based compensation expense recorded to net income $ 185,951 $ 232,668 |
Restructuring Activities
Restructuring Activities | 3 Months Ended |
Apr. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities | Restructuring Activities On February 7, 2023, we announced a restructuring plan (the “Plan”) intended to reduce operating costs and continue advancing our ongoing commitment to profitable growth. The Plan included a reduction of our then-current workforce by approximately 15%. The execution of the Plan was completed as of July 31, 2023, and therefore no restructuring expense was recorded for the three months ended April 30, 2024. For the three months ended April 30, 2023, we recorded net restructuring costs of $73.2 million, which consisted of $54.8 million related to employee transition, severance payments, and employee benefits; $17.3 million related to stock-based compensation awards; and $1.1 million for other related expenses. The following table summarizes our restructuring expenses that were recorded as an operating expense in the condensed consolidated statement of operations for the three months ended April 30, 2023: Three Months Ended April 30, 2023 (in thousands) Cost of revenue $ 7,095 Research and development 19,302 Sales and marketing 33,841 General and administrative 12,942 Total restructuring expenses $ 73,180 There was no restructuring liability as of January 31, 2024 and April 30, 2024. |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We compute our provision for income taxes by applying the estimated annual effective tax rate to year-to-date ordinary income and adjust the provision for discrete tax items recorded in the period. In each quarter, we update the estimated annual effective tax rate and make a year-to-date adjustment to the provision. The following table provides details of the provision for income taxes: Three Months Ended April 30, 2024 2023 (in thousands, except percentages) Income before provision for income taxes $ 291,964 $ 43,230 Provision for income taxes 75,656 27,786 Effective tax rate 25.9 % 64.3 % The year-over-year change in effective tax rate for the three months ended April 30, 2024 was due primarily to the increase in income before taxes and tax shortfalls and windfalls on stock-based compensation. For both the three months ended April 30, 2024 and April 30, 2023, the effective tax rate differed from the U.S. federal statutory rate due primarily to the foreign-derived intangible income deduction and research credits, offset by tax shortfalls on stock-based compensation, and other compensation-related permanent differences. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Apr. 30, 2024 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share The following table sets forth the computation of basic and diluted net income per share for the periods presented: Three Months Ended April 30, 2024 2023 Class A Class B Class A Class B (in thousands, except share and per share data) Numerator: Net income, basic $ 184,070 $ 32,238 $ 13,004 $ 2,440 Reallocation of net income (1,292) 1,292 (135) 135 Net income, diluted $ 182,778 $ 33,530 $ 12,869 $ 2,575 Denominator: Weighted-average shares used in computing net income per share, basic 262,693,481 46,007,101 248,731,065 46,678,142 Weighted-average shares used in computing net income per share, diluted 266,476,843 48,883,835 253,394,377 50,721,536 Net income per share, basic $ 0.70 $ 0.70 $ 0.05 $ 0.05 Net income per share, diluted $ 0.69 $ 0.69 $ 0.05 $ 0.05 The potential shares of common stock that were excluded from the computation of diluted net income per share for the periods presented, because including them would have been anti-dilutive, are as follows: Three Months Ended April 30, 2024 2023 Class A Class B Class A Class B Unvested RSUs 10,342,542 — 10,884,907 — Purchase rights committed under the ESPP 1,040,285 — 2,068,828 — Outstanding stock options 102,354 — 124,051 — Total 11,485,181 — 13,077,786 — The table above does not include 405,156 shares of issued Class A common stock held by us as of April 30, 2024 and 2023 that are reserved for the sole purpose of being transferred to nonprofit organizations. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 216,308 | $ 15,444 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Apr. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Business and Signi_2
Summary of Business and Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and applicable regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting, and include the accounts of Zoom Video Communications, Inc., its subsidiaries, and variable interest entities for which we are the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Significant items subject to such estimates and assumptions include, but are not limited to, the estimated expected benefit period for deferred contract acquisition costs, stock-based compensation expense, 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. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense related to stock awards with only service conditions, including stock options, RSUs, and employee stock purchase plan (“ESPP”), are 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. For RSU’s with service and performance conditions, expense is recognized over the requisite service period if it is probable the performance condition will be achieved. The probability of achievement is assessed quarterly, and the effect of any change in the estimated number of performance-based awards expected to vest is recognized in the period those estimates are revised as a cumulative catch-up adjustment to stock-based compensation expense. 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 use of 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 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. |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which aims to improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis to enable investors to develop more decision-useful financial analyses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. This ASU will likely result in us including the additional required disclosures when adopted. We are currently evaluating the impact from the adoption of this ASU on our consolidated financial statements and will adopt it for the year ending January 31, 2025. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which aims to improve the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 and early adoption is permitted. We are currently evaluating the impact from the adoption of this ASU on our consolidated financial statements. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue by Region | The following table summarizes revenue by region based on the billing address of customers: Three Months Ended April 30, 2024 2023 Amount Percentage of Amount Percentage of (in thousands, except percentages) Americas $ 818,683 71.7 % $ 784,597 71.0 % Asia Pacific (“APAC”) 138,314 12.1 140,870 12.7 Europe, Middle East, and Africa (“EMEA”) 184,237 16.2 179,897 16.3 Total $ 1,141,234 100.0 % $ 1,105,364 100.0 % |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Marketable Securities | As of April 30, 2024 and January 31, 2024, our marketable securities consisted of the following: As of April 30, 2024 Amortized Gross Gross Estimated (in thousands) Commercial paper $ 19,737 $ — $ — $ 19,737 Agency bonds 1,752,707 24 (6,482) 1,746,249 Corporate and other debt securities 652,318 104 (2,633) 649,789 U.S. government agency securities 3,032,764 4 (14,488) 3,018,280 Treasury bills 54,727 — (45) 54,682 Marketable securities $ 5,512,253 $ 132 $ (23,648) $ 5,488,737 As of January 31, 2024 Amortized Gross Gross Estimated (in thousands) Commercial paper $ 41,564 $ — $ — $ 41,564 Agency bonds 1,667,601 2,426 (3,344) 1,666,683 Corporate and other debt securities 663,122 1,161 (1,124) 663,159 U.S. government agency securities 3,003,224 7,859 (6,241) 3,004,842 Treasury bills 27,992 — (7) 27,985 Marketable securities $ 5,403,503 $ 11,446 $ (10,716) $ 5,404,233 |
Schedule of Contractual Maturities of Marketable Securities | The following table presents the contractual maturities of our marketable securities as of April 30, 2024 and January 31, 2024: As of April 30, 2024 January 31, 2024 (in thousands) Less than one year $ 3,017,465 $ 2,883,598 Due in one to five years 2,471,272 2,520,635 Total $ 5,488,737 $ 5,404,233 |
Schedule of Strategic Investments | Strategic investments by form and measurement category as of April 30, 2024 were as follows: Measurement Category Fair Value Measurement Alternative Equity Method Total (in thousands) Equity securities $ 24,200 $ 299,651 $ 97,208 $ 421,059 Debt securities 3,864 — — 3,864 Strategic investments $ 28,064 $ 299,651 $ 97,208 $ 424,923 Strategic investments by form and measurement category as of January 31, 2024 were as follows: Measurement Category Fair Value Measurement Alternative Equity Method Total (in thousands) Equity securities $ 23,160 $ 285,509 $ 96,725 $ 405,394 Debt securities 3,828 — — 3,828 Strategic investments $ 26,988 $ 285,509 $ 96,725 $ 409,222 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Measured at Fair Value on Recurring Basis | The following tables present information about our financial instruments that are measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value: As of April 30, 2024 Fair Value Level 1 Level 2 Level 3 (in thousands) Financial Assets: Money market funds $ 1,347,656 $ 1,347,656 $ — $ — Treasury bills 40,325 — 40,325 — Commercial paper 9,466 — 9,466 — U.S. government agency securities 3,504 — 3,504 — Cash equivalents 1,400,951 1,347,656 53,295 — Commercial paper 19,737 — 19,737 — Agency bonds 1,746,249 — 1,746,249 — Corporate and other debt securities 649,789 — 649,789 — U.S. government agency securities 3,018,280 — 3,018,280 — Treasury bills 54,682 — 54,682 — Marketable securities 5,488,737 — 5,488,737 — Certificates of deposit included in other assets, noncurrent 253 — 253 — Publicly held equity securities included in strategic investments 24,200 24,200 — — Privately held debt securities included in strategic investments 3,864 — — 3,864 Total financial assets $ 6,918,005 $ 1,371,856 $ 5,542,285 $ 3,864 As of January 31, 2024 Fair Value Level 1 Level 2 Level 3 (in thousands) Financial Assets: Money market funds $ 851,100 $ 851,100 $ — $ — Treasury bills 100,629 — 100,629 — Corporate debt securities 2,715 — 2,715 — Agency bonds 20,155 — 20,155 — Cash equivalents 974,599 851,100 123,499 — Commercial paper 41,564 — 41,564 — Agency bonds 1,666,683 — 1,666,683 — Corporate and other debt securities 663,159 — 663,159 — U.S. government agency securities 3,004,842 — 3,004,842 — Treasury bills 27,985 — 27,985 — Marketable securities 5,404,233 — 5,404,233 — Certificates of deposit included in other assets, noncurrent 254 — 254 — Publicly held equity securities included in strategic investments 23,160 23,160 — — Privately held debt securities included in strategic investments 3,828 — — 3,828 Total financial assets $ 6,406,074 $ 874,260 $ 5,527,986 $ 3,828 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Accounts Receivable | Our short-term accounts receivable consist of the following: As of April 30, 2024 January 31, 2024 (in thousands) Accounts receivable, gross $ 549,524 $ 568,449 Less: allowance for credit losses (17,011) (25,916) Less: allowance for returns (4,998) (6,455) Accounts receivable, net $ 527,515 $ 536,078 |
Schedule of Allowance for Credit Loss | Below is a rollforward of our allowance for credit losses for the three months ended April 30, 2024 and 2023: 2024 2023 (in thousands) Balance as of January 31 $ 25,916 $ 24,900 Provision for credit losses 4,533 21,737 Write-offs (13,438) (8,516) Balance as of April 30 $ 17,011 $ 38,121 |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following: As of April 30, 2024 January 31, 2024 (in thousands) Prepaid expenses $ 151,427 $ 188,259 Restricted cash 10,588 6,874 Other 20,062 24,049 Prepaid expenses and other current assets $ 182,077 $ 219,182 |
Schedule of Property and Equipment | Property and equipment consisted of the following: As of April 30, 2024 January 31, 2024 (in thousands) Servers $ 360,672 $ 340,868 Software 101,639 95,409 Computer and office equipment 43,057 44,571 Leasehold improvements 49,329 43,981 Furniture and fixtures 5,213 5,192 Property and equipment, gross 559,910 530,021 Less: accumulated depreciation and amortization (255,198) (236,317) Property and equipment, net $ 304,712 $ 293,704 |
Schedule of Other Assets, Noncurrent | Other assets, noncurrent consisted of the following: As of April 30, 2024 January 31, 2024 (in thousands) Accounts receivable, noncurrent $ 18,073 $ 26,099 Intangible assets subject to amortization, net 43,609 46,935 Indefinite-lived intangible assets 25,239 25,239 Prepaid expenses, noncurrent 28,297 23,351 Other 11,792 11,853 Other assets, noncurrent $ 127,010 $ 133,477 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: As of April 30, 2024 January 31, 2024 (in thousands) Accrued expenses $ 172,398 $ 173,993 Accrued compensation and benefits 127,708 185,128 Income tax liabilities 71,257 21,880 Sales and other non-income tax liabilities 33,664 35,460 Customer deposit liabilities 44,065 40,142 Operating lease liabilities, current 27,572 24,645 Other 25,135 18,916 Accrued expenses and other current liabilities $ 501,799 $ 500,164 |
Schedule of Other Liabilities, Noncurrent | Other liabilities, noncurrent consisted of the following: As of April 30, 2024 January 31, 2024 (in thousands) Sales and other non-income tax liabilities $ 42,515 $ 42,254 Long-term income tax liabilities 37,060 33,864 Other 5,641 5,260 Other liabilities, noncurrent $ 85,216 $ 81,378 |
Stockholders_ Equity and Equi_2
Stockholders’ Equity and Equity Incentive Plans (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock Option Activity Under Equity Incentive Plan | A summary of stock option activity under our equity incentive plan and related information is as follows: Stock Options Outstanding Weighted- Weighted- Aggregate (in thousands, except share, life, and per share data) Balance as of January 31, 2024 3,314,228 $ 8.21 3.9 $ 189,921 Exercised (109,464) $ 9.28 $ 6,146 Canceled/forfeited/expired (1,875) $ 94.87 Outstanding and exercisable as of April 30, 2024 3,202,889 $ 8.12 3.7 $ 172,975 |
Schedule 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 RSUs Weighted- Unvested as of January 31, 2024 26,040,557 $ 83.14 Granted 5,073,584 $ 64.56 Vested (4,001,172) $ 84.99 Canceled/forfeited (1,099,816) $ 83.83 Unvested as of April 30, 2024 26,013,153 $ 79.20 |
Schedule of Stock-based Compensation Expense by Line Item | The stock-based compensation expense by line item in the accompanying condensed consolidated statements of operations is summarized as follows: Three Months Ended April 30, 2024 2023 (in thousands) Cost of revenue $ 31,575 $ 38,089 Research and development 82,569 81,466 Sales and marketing 77,234 112,593 General and administrative 38,047 50,197 Total stock-based compensation expense $ 229,425 $ 282,345 Benefit from income taxes (43,474) (49,677) Total stock-based compensation expense recorded to net income $ 185,951 $ 232,668 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Costs | The following table summarizes our restructuring expenses that were recorded as an operating expense in the condensed consolidated statement of operations for the three months ended April 30, 2023: Three Months Ended April 30, 2023 (in thousands) Cost of revenue $ 7,095 Research and development 19,302 Sales and marketing 33,841 General and administrative 12,942 Total restructuring expenses $ 73,180 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The following table provides details of the provision for income taxes: Three Months Ended April 30, 2024 2023 (in thousands, except percentages) Income before provision for income taxes $ 291,964 $ 43,230 Provision for income taxes 75,656 27,786 Effective tax rate 25.9 % 64.3 % |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income Per Share | The following table sets forth the computation of basic and diluted net income per share for the periods presented: Three Months Ended April 30, 2024 2023 Class A Class B Class A Class B (in thousands, except share and per share data) Numerator: Net income, basic $ 184,070 $ 32,238 $ 13,004 $ 2,440 Reallocation of net income (1,292) 1,292 (135) 135 Net income, diluted $ 182,778 $ 33,530 $ 12,869 $ 2,575 Denominator: Weighted-average shares used in computing net income per share, basic 262,693,481 46,007,101 248,731,065 46,678,142 Weighted-average shares used in computing net income per share, diluted 266,476,843 48,883,835 253,394,377 50,721,536 Net income per share, basic $ 0.70 $ 0.70 $ 0.05 $ 0.05 Net income per share, diluted $ 0.69 $ 0.69 $ 0.05 $ 0.05 |
Schedule 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 for the periods presented, because including them would have been anti-dilutive, are as follows: Three Months Ended April 30, 2024 2023 Class A Class B Class A Class B Unvested RSUs 10,342,542 — 10,884,907 — Purchase rights committed under the ESPP 1,040,285 — 2,068,828 — Outstanding stock options 102,354 — 124,051 — Total 11,485,181 — 13,077,786 — |
Revenue Recognition - Schedule
Revenue Recognition - Schedule Disaggregation of Revenue by Region (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,141,234 | $ 1,105,364 |
Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of revenue (as a percent) | 100% | 100% |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 818,683 | $ 784,597 |
Americas | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of revenue (as a percent) | 71.70% | 71% |
Asia Pacific (“APAC”) | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 138,314 | $ 140,870 |
Asia Pacific (“APAC”) | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of revenue (as a percent) | 12.10% | 12.70% |
Europe, Middle East, and Africa (“EMEA”) | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 184,237 | $ 179,897 |
Europe, Middle East, and Africa (“EMEA”) | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of revenue (as a percent) | 16.20% | 16.30% |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 30, 2024 | Apr. 30, 2023 | Jan. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |||
Unbilled contracts receivable | $ 137.7 | $ 124.8 | |
Revenue recognized included in deferred revenue | $ 592.5 | $ 576.8 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligation (Details) $ in Millions | Apr. 30, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 3,665.7 |
Billed Consideration | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | 1,352.2 |
Unbilled Consideration | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 2,313.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-05-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation (as a percent) | 59% |
Revenue remaining performance obligation, expected timing of satisfaction period (in months) | 12 months |
Investments - Schedule of Marke
Investments - Schedule of Marketable Securities (Details) - USD ($) $ in Thousands | Apr. 30, 2024 | Jan. 31, 2024 |
Marketable Securities [Line Items] | ||
Amortized Cost | $ 5,512,253 | $ 5,403,503 |
Gross Unrealized Gains | 132 | 11,446 |
Gross Unrealized Losses | (23,648) | (10,716) |
Estimated Fair Value | 5,488,737 | 5,404,233 |
Commercial paper | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 19,737 | 41,564 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 19,737 | 41,564 |
Agency bonds | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 1,752,707 | 1,667,601 |
Gross Unrealized Gains | 24 | 2,426 |
Gross Unrealized Losses | (6,482) | (3,344) |
Estimated Fair Value | 1,746,249 | 1,666,683 |
Corporate and other debt securities | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 652,318 | 663,122 |
Gross Unrealized Gains | 104 | 1,161 |
Gross Unrealized Losses | (2,633) | (1,124) |
Estimated Fair Value | 649,789 | 663,159 |
U.S. government agency securities | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 3,032,764 | 3,003,224 |
Gross Unrealized Gains | 4 | 7,859 |
Gross Unrealized Losses | (14,488) | (6,241) |
Estimated Fair Value | 3,018,280 | 3,004,842 |
Treasury bills | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 54,727 | 27,992 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (45) | (7) |
Estimated Fair Value | $ 54,682 | $ 27,985 |
Investments - Additional Inform
Investments - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Apr. 30, 2024 | Apr. 30, 2023 | Jan. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |||
Unrealized losses for securities in unrealized loss position for less than 12 months | $ 21,800,000 | $ 6,000,000 | |
Unrealized losses for securities in unrealized loss position for 12 months or longer | 1,900,000 | $ 4,800,000 | |
Available-for-sale, realized gain (loss) | $ 0 | $ 0 |
Investments - Schedule of Contr
Investments - Schedule of Contractual Maturities of Marketable Securities (Details) - USD ($) $ in Thousands | Apr. 30, 2024 | Jan. 31, 2024 |
Investments, Debt and Equity Securities [Abstract] | ||
Less than one year | $ 3,017,465 | $ 2,883,598 |
Due in one to five years | 2,471,272 | 2,520,635 |
Total | $ 5,488,737 | $ 5,404,233 |
Investments - Schedule of Strat
Investments - Schedule of Strategic Investments (Details) - USD ($) $ in Thousands | Apr. 30, 2024 | Jan. 31, 2024 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement Alternative | $ 299,651 | $ 285,509 |
Equity Method | 97,208 | 96,725 |
Total equity securities | 421,059 | 405,394 |
Debt securities | 3,864 | 3,828 |
Fair value of strategic investments | 28,064 | 26,988 |
Total strategic investments | 424,923 | 409,222 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 24,200 | 23,160 |
Debt securities | $ 3,864 | $ 3,828 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Apr. 30, 2024 | Jan. 31, 2024 |
Financial Assets: | ||
Marketable securities | $ 5,488,737 | $ 5,404,233 |
Commercial paper | ||
Financial Assets: | ||
Marketable securities | 19,737 | 41,564 |
Agency bonds | ||
Financial Assets: | ||
Marketable securities | 1,746,249 | 1,666,683 |
Corporate and other debt securities | ||
Financial Assets: | ||
Marketable securities | 649,789 | 663,159 |
U.S. government agency securities | ||
Financial Assets: | ||
Marketable securities | 3,018,280 | 3,004,842 |
Fair Value, Recurring Basis | ||
Financial Assets: | ||
Cash equivalents | 1,400,951 | 974,599 |
Marketable securities | 5,488,737 | 5,404,233 |
Publicly held equity securities included in strategic investments | 24,200 | 23,160 |
Total financial assets | 6,918,005 | 6,406,074 |
Fair Value, Recurring Basis | Commercial paper | ||
Financial Assets: | ||
Marketable securities | 19,737 | 41,564 |
Fair Value, Recurring Basis | Agency bonds | ||
Financial Assets: | ||
Marketable securities | 1,746,249 | 1,666,683 |
Fair Value, Recurring Basis | Corporate and other debt securities | ||
Financial Assets: | ||
Marketable securities | 649,789 | 663,159 |
Fair Value, Recurring Basis | U.S. government agency securities | ||
Financial Assets: | ||
Marketable securities | 3,018,280 | 3,004,842 |
Fair Value, Recurring Basis | Treasury bills | ||
Financial Assets: | ||
Marketable securities | 54,682 | 27,985 |
Fair Value, Recurring Basis | Certificates of deposit included in other assets, noncurrent | ||
Financial Assets: | ||
Certificates of deposit included in other assets, noncurrent | 253 | 254 |
Fair Value, Recurring Basis | Privately held debt securities included in strategic investments | ||
Financial Assets: | ||
Marketable securities | 3,864 | 3,828 |
Fair Value, Recurring Basis | Money market funds | ||
Financial Assets: | ||
Cash equivalents | 1,347,656 | 851,100 |
Fair Value, Recurring Basis | Treasury bills | ||
Financial Assets: | ||
Cash equivalents | 40,325 | 100,629 |
Fair Value, Recurring Basis | Commercial paper | ||
Financial Assets: | ||
Cash equivalents | 9,466 | |
Fair Value, Recurring Basis | U.S. government agency securities | ||
Financial Assets: | ||
Cash equivalents | 3,504 | |
Fair Value, Recurring Basis | Corporate debt securities | ||
Financial Assets: | ||
Cash equivalents | 2,715 | |
Fair Value, Recurring Basis | Agency bonds | ||
Financial Assets: | ||
Cash equivalents | 20,155 | |
Fair Value, Recurring Basis | Level 1 | ||
Financial Assets: | ||
Cash equivalents | 1,347,656 | 851,100 |
Marketable securities | 0 | 0 |
Publicly held equity securities included in strategic investments | 24,200 | 23,160 |
Total financial assets | 1,371,856 | 874,260 |
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 included in other assets, noncurrent | ||
Financial Assets: | ||
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 | 1,347,656 | 851,100 |
Fair Value, Recurring Basis | Level 1 | Treasury bills | ||
Financial Assets: | ||
Cash equivalents | 0 | 0 |
Fair Value, Recurring Basis | Level 1 | Commercial paper | ||
Financial Assets: | ||
Cash equivalents | 0 | |
Fair Value, Recurring Basis | Level 1 | U.S. government agency securities | ||
Financial Assets: | ||
Cash equivalents | 0 | |
Fair Value, Recurring Basis | Level 1 | Corporate debt securities | ||
Financial Assets: | ||
Cash equivalents | 0 | |
Fair Value, Recurring Basis | Level 1 | Agency bonds | ||
Financial Assets: | ||
Cash equivalents | 0 | |
Fair Value, Recurring Basis | Level 2 | ||
Financial Assets: | ||
Cash equivalents | 53,295 | 123,499 |
Marketable securities | 5,488,737 | 5,404,233 |
Publicly held equity securities included in strategic investments | 0 | 0 |
Total financial assets | 5,542,285 | 5,527,986 |
Fair Value, Recurring Basis | Level 2 | Commercial paper | ||
Financial Assets: | ||
Marketable securities | 19,737 | 41,564 |
Fair Value, Recurring Basis | Level 2 | Agency bonds | ||
Financial Assets: | ||
Marketable securities | 1,746,249 | 1,666,683 |
Fair Value, Recurring Basis | Level 2 | Corporate and other debt securities | ||
Financial Assets: | ||
Marketable securities | 649,789 | 663,159 |
Fair Value, Recurring Basis | Level 2 | U.S. government agency securities | ||
Financial Assets: | ||
Marketable securities | 3,018,280 | 3,004,842 |
Fair Value, Recurring Basis | Level 2 | Treasury bills | ||
Financial Assets: | ||
Marketable securities | 54,682 | 27,985 |
Fair Value, Recurring Basis | Level 2 | Certificates of deposit included in other assets, noncurrent | ||
Financial Assets: | ||
Certificates of deposit included in other assets, noncurrent | 253 | 254 |
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 | 40,325 | 100,629 |
Fair Value, Recurring Basis | Level 2 | Commercial paper | ||
Financial Assets: | ||
Cash equivalents | 9,466 | |
Fair Value, Recurring Basis | Level 2 | U.S. government agency securities | ||
Financial Assets: | ||
Cash equivalents | 3,504 | |
Fair Value, Recurring Basis | Level 2 | Corporate debt securities | ||
Financial Assets: | ||
Cash equivalents | 2,715 | |
Fair Value, Recurring Basis | Level 2 | Agency bonds | ||
Financial Assets: | ||
Cash equivalents | 20,155 | |
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 | 0 |
Total financial assets | 3,864 | 3,828 |
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 included in other assets, noncurrent | ||
Financial Assets: | ||
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 | 3,864 | 3,828 |
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 | Commercial paper | ||
Financial Assets: | ||
Cash equivalents | 0 | |
Fair Value, Recurring Basis | Level 3 | U.S. government agency securities | ||
Financial Assets: | ||
Cash equivalents | $ 0 | |
Fair Value, Recurring Basis | Level 3 | Corporate debt securities | ||
Financial Assets: | ||
Cash equivalents | 0 | |
Fair Value, Recurring Basis | Level 3 | Agency bonds | ||
Financial Assets: | ||
Cash equivalents | $ 0 |
Business Combinations (Details)
Business Combinations (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 21, 2023 | Apr. 30, 2024 | Jan. 31, 2024 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 307,295 | $ 307,295 | |
Workvivo Limited | |||
Business Acquisition [Line Items] | |||
Business acquisition, percentage of voting interests acquired (as a percent) | 100% | ||
Cash consideration paid | $ 221,800 | ||
Goodwill | 184,700 | ||
Intangible assets, other than goodwill | 28,000 | ||
Other net assets acquired | 9,100 | ||
Workvivo Limited | Developed Technology Rights | |||
Business Acquisition [Line Items] | |||
Intangible assets, other than goodwill | $ 10,800 | ||
Acquired finite-lived intangible assets, weighted average useful life (in years) | 5 years | 4 years | |
Workvivo Limited | Customer Relationships | |||
Business Acquisition [Line Items] | |||
Intangible assets, other than goodwill | $ 17,000 | ||
Acquired finite-lived intangible assets, weighted average useful life (in years) | 5 years | 4 years |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Apr. 30, 2024 | Jan. 31, 2024 | Apr. 30, 2023 | Jan. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Accounts receivable, gross | $ 549,524 | $ 568,449 | ||
Less: allowance for credit losses | (17,011) | (25,916) | $ (38,121) | $ (24,900) |
Less: allowance for returns | (4,998) | (6,455) | ||
Accounts receivable, net | $ 527,515 | $ 536,078 |
Balance Sheet Components -Sched
Balance Sheet Components -Schedule of Rollforward of Allowance For Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 25,916 | $ 24,900 |
Provision for credit losses | 4,533 | 21,737 |
Write-offs | (13,438) | (8,516) |
Ending balance | $ 17,011 | $ 38,121 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Apr. 30, 2024 | Jan. 31, 2024 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid expenses | $ 151,427 | $ 188,259 |
Restricted cash | 10,588 | 6,874 |
Other | 20,062 | 24,049 |
Prepaid expenses and other current assets | $ 182,077 | $ 219,182 |
Balance Sheet Components - Sc_3
Balance Sheet Components - Schedule of Property and Equipment Net (Details) - USD ($) $ in Thousands | Apr. 30, 2024 | Jan. 31, 2024 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 559,910 | $ 530,021 |
Less: accumulated depreciation and amortization | (255,198) | (236,317) |
Property and equipment, net | 304,712 | 293,704 |
Servers | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 360,672 | 340,868 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 101,639 | 95,409 |
Computer and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 43,057 | 44,571 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 49,329 | 43,981 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 5,213 | $ 5,192 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Depreciation | $ 23.3 | $ 22 |
Balance Sheet Components - Sc_4
Balance Sheet Components - Schedule of Other Noncurrent Assets (Details) - USD ($) $ in Thousands | Apr. 30, 2024 | Jan. 31, 2024 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts receivable, noncurrent | $ 18,073 | $ 26,099 |
Intangible assets subject to amortization, net | 43,609 | 46,935 |
Indefinite-lived intangible assets | 25,239 | 25,239 |
Prepaid expenses, noncurrent | 28,297 | 23,351 |
Other | 11,792 | 11,853 |
Other assets, noncurrent | $ 127,010 | $ 133,477 |
Balance Sheet Components - Sc_5
Balance Sheet Components - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Apr. 30, 2024 | Jan. 31, 2024 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued expenses | $ 172,398 | $ 173,993 |
Accrued compensation and benefits | 127,708 | 185,128 |
Income tax liabilities | 71,257 | 21,880 |
Sales and other non-income tax liabilities | 33,664 | 35,460 |
Customer deposit liabilities | 44,065 | 40,142 |
Operating lease liabilities, current | 27,572 | 24,645 |
Other | 25,135 | 18,916 |
Accrued expenses and other current liabilities | $ 501,799 | $ 500,164 |
Balance Sheet Components - Sc_6
Balance Sheet Components - Schedule of Other Liabilities Non Current (Details) - USD ($) $ in Thousands | Apr. 30, 2024 | Jan. 31, 2024 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Sales and other non-income tax liabilities | $ 42,515 | $ 42,254 |
Long-term income tax liabilities | 37,060 | 33,864 |
Other | 5,641 | 5,260 |
Other liabilities, noncurrent | $ 85,216 | $ 81,378 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 12 Months Ended | ||||||
Jul. 30, 2020 officer | Jun. 11, 2020 officer | Apr. 08, 2020 officer | Jan. 31, 2024 USD ($) | Jul. 17, 2023 USD ($) | Jan. 31, 2023 USD ($) | Nov. 17, 2021 lawsuit | |
Other Commitments [Line Items] | |||||||
Number of derivative lawsuits | lawsuit | 3 | ||||||
Pending Litigation | Violation Of Securities Act Section 10(b), 20(a), and Rule 10b-5 | |||||||
Other Commitments [Line Items] | |||||||
Amount of payment agreed upon | $ 150 | ||||||
Settled Litigation | Violation Of Securities Act Section 10(b), 20(a), and Rule 10b-5 | |||||||
Other Commitments [Line Items] | |||||||
Payments for legal settlements | $ 60 | ||||||
Payments for legal settlements, gross | 150 | ||||||
Payments for legal settlements, net of insurance payment | 90 | ||||||
Loss contingency accrual | $ 7.5 | ||||||
Aggregate legal settlement charge | $ 52.5 | ||||||
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 |
Stockholders_ Equity and Equi_3
Stockholders’ Equity and Equity Incentive Plans - Additional Information (Details) | 3 Months Ended | ||
Apr. 30, 2024 USD ($) plan $ / shares shares | Feb. 29, 2024 USD ($) | Jan. 31, 2024 $ / shares shares | |
Class of Stock [Line Items] | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |
Remaining authorized amount | $ 1,350,000,000 | ||
Number of equity incentive plans | plan | 2 | ||
Unrecognized stock-based compensation expenses related to outstanding unvested stock options (in shares) | $ 0 | ||
RSUs | |||
Class of Stock [Line Items] | |||
Unrecognized stock-based compensation expenses | $ 1,787,900,000 | ||
Unrecognized stock-based compensation excepted to be recognized over a weighted-average period (in years) | 2 years 7 months 6 days | ||
Granted (in shares) | shares | 5,073,584 | ||
Employee Stock Purchase Plan | |||
Class of Stock [Line Items] | |||
Unrecognized stock-based compensation expenses | $ 26,800,000 | ||
Unrecognized stock-based compensation excepted to be recognized over a weighted-average period (in years) | 1 year | ||
Restricted Stock Units (RSUs) With Service And Performance Criteria | |||
Class of Stock [Line Items] | |||
Granted (in shares) | shares | 1,700,000 | ||
Vesting percentage | 100% | ||
Restricted Stock Units (RSUs) With Service And Performance Criteria | Minimum | |||
Class of Stock [Line Items] | |||
Vesting percentage | 0% | ||
Restricted Stock Units (RSUs) With Service And Performance Criteria | Maximum | |||
Class of Stock [Line Items] | |||
Vesting percentage | 100% | ||
Class A Common Stock | |||
Class of Stock [Line Items] | |||
Common stock, authorized (in shares) | shares | 2,000,000,000 | 2,000,000,000 | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | ||
Stock repurchase plan, authorized amount (up to) | $ 1,500,000,000 | ||
Stock repurchased and retired during period (in shares) | shares | 2,400,305 | ||
Stock repurchased and retired during period | $ 150,000,000 | ||
Class B Common Stock | |||
Class of Stock [Line Items] | |||
Common stock, authorized (in shares) | shares | 300,000,000 | 300,000,000 | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 |
Stockholders_ Equity and Equi_4
Stockholders’ Equity and Equity Incentive Plans - Schedule of Stock Option Activity Under Equity Incentive Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Apr. 30, 2024 | Jan. 31, 2024 | |
Outstanding Stock Options | ||
Beginning balance (in shares) | 3,314,228 | |
Exercised (in shares) | (109,464) | |
Cancelled/forfeited/expired (in shares) | (1,875) | |
Ending balance (in shares) | 3,202,889 | 3,314,228 |
Exercisable (in shares) | 3,202,889 | |
Weighted- Average Exercise Price | ||
Beginning balance (in dollars per share) | $ 8.21 | |
Exercised (in dollars per share) | 9.28 | |
Cancelled/forfeited/expired (in dollars per share) | 94.87 | |
Ending balance (in dollars per share) | 8.12 | $ 8.21 |
Weighted average exercise price, exercisable (in dollars per share) | $ 8.12 | |
Weighted- Average Remaining Contractual Life (Years) | ||
Outstanding (in years) | 3 years 8 months 12 days | 3 years 10 months 24 days |
Weighted-average remaining contractual life, exercisable (in years) | 3 years 8 months 12 days | |
Aggregate Intrinsic Value | ||
Outstanding | $ 172,975 | $ 189,921 |
Exercised | 6,146 | |
Aggregate intrinsic value, exercisable | $ 172,975 |
Stockholders_ Equity and Equi_5
Stockholders’ Equity and Equity Incentive Plans - Schedule of Restricted Stock Units Activity Under Equity Incentive Plan (Details) - RSUs | 3 Months Ended |
Apr. 30, 2024 $ / shares shares | |
RSUs | |
Beginning balance (in shares) | shares | 26,040,557 |
Granted (in shares) | shares | 5,073,584 |
Vested (in shares) | shares | (4,001,172) |
Cancelled/forfeited (in shares) | shares | (1,099,816) |
Ending balance (in shares) | shares | 26,013,153 |
Weighted- Average Grant Date Fair Value Per Share | |
Beginning balance (in dollars per share) | $ / shares | $ 83.14 |
Granted (in dollars per share) | $ / shares | 64.56 |
Vested (in dollars per share) | $ / shares | 84.99 |
Cancelled/forfeited (in dollars per share) | $ / shares | 83.83 |
Ending balance (in dollars per share) | $ / shares | $ 79.20 |
Stockholders_ Equity and Equi_6
Stockholders’ Equity and Equity Incentive Plans - Schedule of Stock-based Compensation Expense by Line Item (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 229,425 | $ 282,345 |
Benefit from income taxes | (43,474) | (49,677) |
Total stock-based compensation expense recorded to net income | 185,951 | 232,668 |
Cost of revenue | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 31,575 | 38,089 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 82,569 | 81,466 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 77,234 | 112,593 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 38,047 | $ 50,197 |
Restructuring Activities - Addi
Restructuring Activities - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Feb. 07, 2023 | Apr. 30, 2023 | Apr. 30, 2024 | Jan. 31, 2024 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 73,180 | |||
Restructuring liability | $ 0 | $ 0 | ||
Employee Transition, Severance Payments, And Employee Benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 54,800 | |||
Employee Stock-Based Compensation Awards | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 17,300 | |||
Other Related Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 1,100 | |||
The Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Reduction in current workforce | 15% |
Restructuring Activities - Sche
Restructuring Activities - Schedule of Restructuring Costs (Details) $ in Thousands | 3 Months Ended |
Apr. 30, 2023 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Total restructuring expenses | $ 73,180 |
Cost of revenue | |
Restructuring Cost and Reserve [Line Items] | |
Total restructuring expenses | 7,095 |
Research and development | |
Restructuring Cost and Reserve [Line Items] | |
Total restructuring expenses | 19,302 |
Sales and marketing | |
Restructuring Cost and Reserve [Line Items] | |
Total restructuring expenses | 33,841 |
General and administrative | |
Restructuring Cost and Reserve [Line Items] | |
Total restructuring expenses | $ 12,942 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||
Income before provision for income taxes | $ 291,964 | $ 43,230 |
Provision for income taxes | $ 75,656 | $ 27,786 |
Effective tax rate | 25.90% | 64.30% |
Net Income Per Share - Schedule
Net Income Per Share - Schedule of Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Denominator: | ||
Weighted-average shares used in computing net income per share, basic (in shares) | 308,700,582 | 295,409,207 |
Weighted-average shares used in computing net income per share, diluted (in shares) | 315,360,678 | 304,115,913 |
Net income per share, basic (in dollars per share) | $ 0.70 | $ 0.05 |
Net income per share, diluted (in dollars per share) | $ 0.69 | $ 0.05 |
Class A | ||
Numerator: | ||
Net income, basic | $ 184,070 | $ 13,004 |
Reallocation of net income | (1,292) | (135) |
Net income, diluted | $ 182,778 | $ 12,869 |
Denominator: | ||
Weighted-average shares used in computing net income per share, basic (in shares) | 262,693,481 | 248,731,065 |
Weighted-average shares used in computing net income per share, diluted (in shares) | 266,476,843 | 253,394,377 |
Net income per share, basic (in dollars per share) | $ 0.70 | $ 0.05 |
Net income per share, diluted (in dollars per share) | $ 0.69 | $ 0.05 |
Class B | ||
Numerator: | ||
Net income, basic | $ 32,238 | $ 2,440 |
Reallocation of net income | 1,292 | 135 |
Net income, diluted | $ 33,530 | $ 2,575 |
Denominator: | ||
Weighted-average shares used in computing net income per share, basic (in shares) | 46,007,101 | 46,678,142 |
Weighted-average shares used in computing net income per share, diluted (in shares) | 48,883,835 | 50,721,536 |
Net income per share, basic (in dollars per share) | $ 0.70 | $ 0.05 |
Net income per share, diluted (in dollars per share) | $ 0.69 | $ 0.05 |
Net Income Per Share - Schedu_2
Net Income Per Share - Schedule of Potential Shares of Common Stock Excluded from Computation of Diluted Net Income Per Share Attributable to Common Stockholders (Details) - shares | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Class A | ||
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) | 11,485,181 | 13,077,786 |
Class A | 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) | 10,342,542 | 10,884,907 |
Class A | 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) | 1,040,285 | 2,068,828 |
Class A | 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) | 102,354 | 124,051 |
Class A | Shares Reserved For Transfer To Nonprofit Organizations | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 405,156 | 405,156 |
Class B | ||
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 | 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 | 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 |
Class B | 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 |