Balance Sheet Components | 5. Balance Sheet Components Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): As of January 31, 2019 As of April 30, 2018 Prepaid hosting costs $ 8,754 $ 7,834 Deposits 1,010 582 Prepaid software subscription costs 3,504 2,483 Deferred stock-based compensation expense 1,170 496 Other 8,443 3,866 Total prepaid expenses and other current assets $ 22,881 $ 15,261 Property and Equipment, Net The cost and accumulated depreciation of property and equipment were as follows (in thousands): Useful Life (in years) As of January 31, 2019 As of April 30, 2018 Leasehold improvements Lesser of estimated useful life or remaining lease term $ 6,017 $ 5,725 Computer hardware and software 3 5,393 5,132 Furniture and fixtures 3-5 2,917 2,443 Assets under construction 230 - Property and equipment, gross $ 14,557 $ 13,300 Less: Accumulated depreciation (9,894 ) (8,764 ) Property and equipment, net $ 4,663 $ 4,536 Depreciation expense related to property and equipment was $0.6 million and $0.8 million for the three months ended January 31, 2019 and 2018, respectively, and $2.1 million and $2.2 million for the nine months ended January 31, 2019 and 2018, respectively. Intangible Assets, Net Intangible assets consisted of the following as of January 31, 2019 (in thousands): Gross Fair Value Accumulated Amortization Net Book Value Weighted Average Remaining Useful Life (in years) Developed technology $ 12,130 $ 4,980 $ 7,150 2.8 Customer relationships 398 249 149 2.3 Trade names 972 850 122 2.2 Total $ 13,500 $ 6,079 $ 7,421 Foreign currency translation adjustment (4 ) Total $ 7,417 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 nine months ended January 31, 2019 and 2018 was as follows (in thousands): Three Months Ended January 31, Nine Months Ended January 31, 2019 2018 2019 2018 Cost of revenue—cost of license—self-managed $ 96 $ 96 $ 290 $ 290 Cost of revenue—cost of subscription—self-managed and SaaS 638 554 1,851 967 Sales and marketing 38 38 115 82 Total amortization of acquired intangible assets $ 772 $ 688 $ 2,256 $ 1,339 The expected future amortization expense of the intangible assets as of January 31, 2019 was as follows (in thousands, by fiscal year): Remainder of 2019 $ 699 2020 2,649 2021 2,616 2022 1,396 2023 61 Total $ 7,421 Goodwill The following table represents the changes to goodwill (in thousands): Carrying Amount Balance as of April 30, 2018 $ 19,182 Addition from acquisition 1,038 Foreign currency translation adjustment (250 ) Balance of January 31, 2019 $ 19,970 There was no impairment of goodwill during the nine months ended January 31, 2019 and 2018. Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consisted of the following (in thousands): As of January 31, 2019 As of April 30, 2018 Accrued expenses $ 7,562 $ 3,279 Income taxes payable - 2,357 Value added taxes payable 3,467 2,536 Liability for early exercise of unvested stock options - 1,566 Share repurchase liability 1,125 449 Other 4,562 1,629 Total accrued expenses and other liabilities $ 16,716 $ 11,816 Accrued Compensation and Benefits Accrued compensation and benefits consisted of the following (in thousands): As of January 31, 2019 As of April 30, 2018 Accrued vacation $ 8,056 $ 6,570 Accrued commissions 3,738 5,913 Post-combination compensation liability 487 655 Other 4,711 2,053 Total accrued compensation and benefits $ 16,992 $ 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 January 31, 2019 As of April 30, 2018 Unbilled accounts receivable, included in accounts receivable, net $ 1,933 $ 1,139 Deferred contract acquisition costs $ 23,452 $ 18,079 Deferred revenue $ 137,803 $ 102,561 Significant changes in the unbilled accounts receivable and the deferred revenue balances were as follows (in thousands): Unbilled Accounts Receivable Nine Months Ended January 31, 2019 2018 Beginning balance $ 1,139 $ 1,114 Amounts transferred to accounts receivable from unbilled accounts receivable presented at the beginning of the period (1,139 ) (1,114 ) Revenue recognized during the period in excess of invoices issued 1,933 757 Ending balance $ 1,933 $ 757 Deferred Revenue Nine Months Ended January 31, 2019 2018 Beginning balance $ 102,561 $ 54,152 Additions through acquisition - 859 Increases due to invoices issued, excluding amounts recognized as revenue during the period 119,856 69,478 Revenue recognized that was included in deferred revenue balance at beginning of period (84,614 ) (44,934 ) Ending balance $ 137,803 $ 79,555 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 nine months ended January 31, 2019. The following table summarizes the activity of the deferred contract acquisition costs (in thousands): Nine Months Ended January 31, 2019 2018 Beginning balance $ 18,079 $ 10,135 Capitalization of contract acquisition costs 20,091 11,372 Amortization of deferred contract acquisition costs (14,718 ) (8,798 ) Ending balance $ 23,452 $ 12,709 |