Balance Sheet Components | 5. Balance Sheet Components Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consists of the following (in thousands): As of October 31, 2018 As of April 30, 2018 $ 8,065 $ 7,834 Deposits 2,908 582 Prepaid software subscription costs 1,325 2,483 Deferred stock-based compensation expense 1,571 496 Other 4,655 3,866 Total prepaid expenses and other current assets $ 18,524 $ 15,261 Property and Equipment, Net The cost and accumulated depreciation of property and equipment are as follows (in thousands): Useful Life (in years) As of October 31, 2018 As of April 30, 2018 Lesser of estimated useful life or remaining lease term $ 5,326 $ 5,725 Computer hardware and software 3 5,338 5,132 Furniture and fixtures 3-5 2,364 2,443 Assets under construction 588 - Property and equipment, gross $ 13,616 $ 13,300 Less: Accumulated depreciation (9,512 ) (8,764 ) Property and equipment, net $ 4,104 $ 4,536 Depreciation expense related to property and equipment was $0.7 million and $0.7 million for the three months ended October 31, 2018 and 2017, respectively, and $1.5 million and $1.4 million for the six months ended October 31, 2018 and 2017, respectively. Intangible Assets, Net Intangible assets consisted of the following as of October 31, 2018 (in thousands): Gross Fair Value Accumulated Amortization Net Book Value Weighted Average Remaining Useful Life (in years) Developed technology $ 12,130 $ 4,246 $ 7,884 3.1 Customer relationships 398 225 173 2.6 Trade names 972 836 136 2.5 Total $ 13,500 $ 5,307 $ 8,193 Foreign currency translation adjustment (17 ) Total $ 8,176 Intangible assets consisted of the following as of April 30, 2018 (in thousands): Gross Fair Value Accumulated Amortization Net Book Value Weighted Average Remaining Useful Life (in years) Developed technology $ 10,791 $ 2,838 $ 7,953 3.4 Trade names 957 809 148 3.0 Customer relationships 398 175 223 2.9 Total $ 12,146 $ 3,822 $ 8,324 Foreign currency translation adjustment (27 ) Total $ 8,297 Amortization expense for the intangible assets for the three and six months ended October 31, 2018 and 2017 was as follows (in thousands): Three Months Ended October 31, Six Months Ended October 31, 2018 2017 2018 2017 Cost of revenue—cost of license—self-managed $ 97 $ 97 $ 194 $ 194 Cost of revenue—cost of subscription—self-managed and SaaS 637 216 1,213 413 Sales and marketing 40 22 77 44 Total amortization of acquired intangible assets $ 774 $ 335 $ 1,484 $ 651 The expected future amortization expense of the intangible assets as of October 31, 2018 was as follows (in thousands, by fiscal year): Remainder of 2019 $ 1,471 2,649 2021 2,616 2022 1,396 2023 61 Total $ 8,193 Goodwill The following table represents the changes to goodwill (in thousands): Carrying Amount $ 19,182 Addition from acquisition 1,038 Foreign currency translation adjustment (256 ) Balance of October 31, 2018 $ 19,964 There was no impairment of goodwill during the six months ended October 31, 2018 and 2017. Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consist of the following (in thousands): As of October 31, 2018 As of April 30, 2018 $ 5,370 $ 3,279 Income taxes payable 2,142 2,357 Value added taxes payable 2,663 2,536 Liability for early exercise of unvested stock options - 1,566 Share repurchase liability 1,612 449 Other 5,079 1,629 Total accrued expenses and other liabilities $ 16,866 $ 11,816 Accrued Compensation and Benefits Accrued compensation and benefits consists of the following (in thousands): As of October 31, 2018 As of April 30, 2018 Accrued vacation $ 7,366 $ 6,570 Accrued commissions 5,470 5,913 Post-combination compensation liability 313 655 Other 3,309 2,053 Total accrued compensation and benefits $ 16,458 $ 15,191 Contract Balances The timing of revenue recognition may differ from the timing of invoicing to customers. For annual contracts, the Company typically invoices customers at the time of entering into the contract. For multi-year agreements, the Company generally invoices customers on an annual basis prior to each anniversary of the contract start date. The Company records unbilled accounts receivable related to revenue recognized in excess of amounts invoiced as the Company has an unconditional right to invoice and receive payment in the future related to those fulfilled obligations. Contract liabilities consist of deferred revenue which is recognized over the contractual period. The following table provides information about unbilled accounts receivable, deferred contract acquisition costs, and deferred revenue from contracts with customers (in thousands): As of October 31, 2018 As of April 30, 2018 Unbilled accounts receivable, included in accounts receivable, net $ 1,294 $ 1,139 Deferred contract acquisition costs $ 22,868 $ 18,079 Deferred revenue $ 127,279 $ 102,561 Significant changes in the unbilled accounts receivable and the deferred revenue balances were as follows (in thousands): Unbilled Accounts Receivable Six Months Ended October 31, 2018 2017 Beginning balance $ 1,139 $ 1,114 Amounts transferred to accounts receivable from unbilled accounts receivable presented at the beginning of the period (1,139 ) (1,742 ) Revenue recognized during the period in excess of invoices issued 1,294 1,234 Ending balance $ 1,294 $ 606 Deferred Revenue Six Months Ended October 31, 2018 2017 Beginning balance $ 102,561 $ 54,152 Additions through acquisition - 859 Increases due to invoices issued, excluding amounts recognized as revenue during the period 94,830 52,277 Revenue recognized that was included in deferred revenue balance at beginning of period (70,112 ) (35,621 ) Ending balance $ 127,279 $ 71,667 Deferred Contract Acquisition Costs Deferred contract acquisition costs represent costs that are incremental to the acquisition of customer contracts, which consist mainly of sales commissions and associated payroll taxes. The Company determines whether costs should be deferred based on sales compensation plans, if the commissions are in fact incremental and would not have occurred absent the customer contract. Sales commissions for renewal of a contract are considered commensurate with the commissions paid for the acquisition of the initial contract given there is no substantive difference in commission rates. Deferred contract acquisition costs are expensed commensurate with the recognition of revenue as performance obligations are satisfied. These performance obligations primarily relate to the Company’s subscription contracts which are typically sold for a one to three-year duration. Amortization of deferred contract acquisition costs is recognized in sales and marketing expense in the consolidated statement of operations. The Company periodically reviews the carrying amount of deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these deferred costs. The Company did not recognize any impairment of deferred contract acquisition costs during the six months ended October 31, 2018. The following table summarizes the activity of the deferred contract acquisition costs (in thousands): Six Months Ended October 31, 2018 2017 Beginning balance $ 18,079 $ 10,135 Capitalization of contract acquisition costs 13,637 7,324 Amortization of deferred contract acquisition costs (8,848 ) (5,598 ) Ending balance $ 22,868 $ 11,861 |