| Balance Sheet Components | Balance Sheet Components Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): As of As of Prepaid hosting costs $ 11,303 $ 11,122 Prepaid software subscription costs 6,863 5,636 Prepaid value added taxes 4,831 9,408 Deposits 2,672 2,410 Prepaid taxes 2,167 1,694 Other 7,060 6,732 Total prepaid expenses and other current assets $ 34,896 $ 37,002 Property and Equipment, Net The cost and accumulated depreciation of property and equipment were as follows (in thousands): Useful Life (in years) As of As of Leasehold improvements Lesser of estimated useful $ 10,812 $ 10,342 Computer hardware and software 3 1,531 2,319 Furniture and fixtures 3 - 5 6,040 5,971 Assets under construction 203 707 Total property and equipment 18,586 19,339 Less: accumulated depreciation (11,076) (10,458) Property and equipment, net $ 7,510 $ 8,881 Depreciation expense related to property and equipment was $1.0 million and $0.8 million for the three months ended October 31, 2021 and 2020, respectively and $2.0 million and $1.5 million for the six months ended October 31, 2021 and 2020, respectively. Intangible Assets, Net Intangible assets consisted of the following as of October 31, 2021 and April 30, 2021 (in thousands): October 31, 2021 Gross Fair Accumulated Net Book Weighted Developed technology $ 64,530 $ 25,360 $ 39,170 3.9 Customer relationships 19,598 10,965 8,633 1.9 Trade names 2,872 2,054 818 1.9 Total $ 87,000 $ 38,379 48,621 3.7 Foreign currency translation adjustment (1) Total $ 48,620 April 30, 2021 Gross Fair Accumulated Net Book Weighted Developed technology $ 44,830 $ 20,850 $ 23,980 3.3 Customer relationships 19,598 8,382 11,216 2.4 Trade names 2,872 1,780 1,092 2.4 Total $ 67,300 $ 31,012 36,288 3.0 Foreign currency translation adjustment (2) Total $ 36,286 Amortization expense for the intangible assets for the three and six months ended October 31, 2021 and 2020 was as follows (in thousands): Three Months Ended October 31, Six Months Ended October 31, 2021 2020 2021 2020 Cost of revenue—cost of license—self-managed $ 395 $ 347 $ 741 $ 693 Cost of revenue—cost of subscription—self-managed and SaaS 2,103 1,762 3,769 3,525 Sales and marketing 1,428 1,433 2,857 2,874 Total amortization of acquired intangible assets $ 3,926 $ 3,542 $ 7,367 $ 7,092 The expected future amortization expense related to the intangible assets as of October 31, 2021 was as follows (in thousands, by fiscal year): Remainder of 2022 $ 8,068 2023 15,830 2024 12,656 2025 6,673 2026 3,940 2027 1,453 Total $ 48,620 Goodwill The following table represents the changes to goodwill (in thousands): Carrying Balance as of April 30, 2021 $ 198,851 Additions from acquisitions 93,064 Foreign currency translation adjustment (125) Balance as of October 31, 2021 $ 291,790 There was no impairment of goodwill during the six months ended October 31, 2021 and 2020. Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consisted of the following (in thousands): As of As of Accrued expenses $ 22,865 $ 12,772 Value added taxes payable 5,936 8,493 Accrued interest on Senior Notes 7,511 — Income taxes payable 2,083 1,596 Other 4,882 6,048 Total accrued expenses and other liabilities $ 43,277 $ 28,909 Accrued Compensation and Benefits Accrued compensation and benefits consisted of the following (in thousands): As of As of Accrued vacation $ 25,351 $ 24,078 Accrued commissions 17,025 17,581 Accrued payroll taxes and withholding taxes 9,014 5,522 Other 4,437 5,344 Total accrued compensation and benefits $ 55,827 $ 52,525 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. Invoicing customers prior to performance creates a contract liability, deferred revenue, which is recognized in accordance with the Company’s revenue recognition policy. The following table provides information about unbilled accounts receivable, deferred contract acquisition costs and deferred revenue from contracts with customers (in thousands): As of As of Unbilled accounts receivable, included in accounts receivable, net $ 4,595 $ 5,204 Deferred contract acquisition costs $ 96,037 $ 86,352 Deferred revenue $ 390,313 $ 397,700 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. 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, 2021. The following table summarizes the activity of the deferred contract acquisition costs (in thousands): Six Months Ended October 31, 2021 2020 Beginning balance $ 86,352 $ 43,549 Capitalization of contract acquisition costs 38,255 39,107 Amortization of deferred contract acquisition costs (28,570) (18,173) Ending balance $ 96,037 $ 64,483 Deferred Revenue Significant changes in the deferred revenue balances were as follows (in thousands): Six Months Ended October 31, 2021 2020 Beginning balance $ 397,700 $ 259,702 Increases due to invoices issued, excluding amounts recognized as revenue during the period 238,822 201,784 Increase from acquisition, net of revenue recognized 1,001 — Amounts transferred to deferred revenue from accrued expenses and other liabilities upon entering into contracts with customers, net of revenue recognized during the period — 5,424 Revenue recognized that was included in deferred revenue balance at beginning of period (247,210) (157,694) Ending balance $ 390,313 $ 309,216 Allowance for Credit Losses The following is a summary of the changes in the Company’s allowance for credit losses (in thousands): Six Months Ended October 31, 2021 2020 Beginning balance $ 2,344 $ 1,247 Cumulative-effect adjustment from adoption of ASU 2016-13 — (367) Provision 2,221 1,233 Write-offs (1,669) (608) Ending balance $ 2,896 $ 1,505 |
