Balance Sheet Components | Balance Sheet Components 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 life or remaining lease term $ 10,026 $ 10,863 Computer hardware and software 3 2,306 1,473 Furniture and fixtures 3-5 6,064 5,753 Assets under construction 79 1,119 Total property and equipment 18,475 19,208 Less: accumulated depreciation (14,524) (12,001) Property and equipment, net $ 3,951 $ 7,207 Depreciation expense related to property and equipment was $0.8 million and $2.9 million for the three and nine months ended January 31, 2023, respectively, and $1.0 million and $2.9 million for the three and nine months ended January 31, 2022, respectively. During the three and nine months ended January 31, 2023, the Company recorded asset impairment charges related to the exit from leased office space which included $1.1 million of furniture, equipment, and leasehold improvements. See Note 16 for further details. Intangible Assets, Net Intangible assets consisted of the following as of January 31, 2023 (in thousands): Gross Fair Value Accumulated Amortization Net Book Value Weighted Average Developed technology $ 70,130 $ 40,256 $ 29,874 2.9 Customer relationships 19,598 16,553 3,045 0.7 Trade names 2,872 2,583 289 0.7 Total $ 92,600 $ 59,392 $ 33,208 2.8 Foreign currency translation adjustment (33) Total $ 33,175 Intangible assets consisted of the following as of April 30, 2022 (in thousands): Gross Fair Value Accumulated Amortization Net Book Value Weighted Average Developed technology $ 70,130 $ 31,355 $ 38,775 3.6 Customer relationships 19,598 13,177 6,421 1.4 Trade names 2,872 2,263 609 1.4 Total $ 92,600 $ 46,795 $ 45,805 3.2 Foreign currency translation adjustment (5) Total $ 45,800 Amortization expense for the intangible assets for the three and nine months ended January 31, 2023 and 2022 was as follows (in thousands): Three Months Ended January 31, Nine Months Ended January 31, 2023 2022 2023 2022 Cost of revenue - subscription $ 2,977 $ 3,046 $ 8,902 $ 7,556 Sales and marketing 1,232 1,231 3,695 4,088 Total amortization of acquired intangible assets $ 4,209 $ 4,277 $ 12,597 $ 11,644 The expected future amortization expense related to the intangible assets as of January 31, 2023 was as follows (in thousands, by fiscal year): Remainder of 2023 $ 4,071 2024 13,985 2025 8,018 2026 5,057 2027 2,044 Total $ 33,175 Goodwill The following table represents the changes to goodwill (in thousands): Carrying Amount Balance as of April 30, 2022 $ 303,906 Foreign currency translation adjustment (53) Balance as of January 31, 2023 $ 303,853 Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consisted of the following (in thousands): As of As of Accrued expenses $ 23,514 $ 24,066 Income taxes payable 11,715 4,286 Value added taxes payable 7,487 8,926 Accrued interest 988 6,918 Other 14,387 9,734 Total accrued expenses and other liabilities $ 58,091 $ 53,930 Accrued Compensation and Benefits Accrued compensation and benefits consisted of the following (in thousands): As of As of Accrued vacation $ 27,144 $ 27,280 Accrued commissions 19,319 23,806 Accrued payroll and withholding taxes 8,056 9,030 Other 13,365 7,886 Total accrued compensation and benefits $ 67,884 $ 68,002 Contract Balances 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 $ 2,554 $ 9,244 Deferred contract acquisition costs $ 135,037 $ 118,047 Deferred revenue $ 484,009 $ 465,294 Deferred Contract Acquisition Costs The following table summarizes the activity of the deferred contract acquisition costs (in thousands): Nine Months Ended January 31, 2023 2022 Beginning balance $ 118,047 $ 86,352 Capitalization of contract acquisition costs 68,485 58,939 Amortization of deferred contract acquisition costs (51,495) (43,373) Ending balance $ 135,037 $ 101,918 The Company did not recognize any impairment of deferred contract acquisition costs during the nine months ended January 31, 2023 and 2022. Deferred Revenue The following table summarizes the deferred revenue activity (in thousands): Nine Months Ended January 31, 2023 2022 Beginning balance $ 465,294 $ 397,700 Increases due to invoices issued, excluding amounts recognized as revenue during the period 406,122 312,581 Increase from acquisitions, net of revenue recognized — 1,001 Revenue recognized that was included in deferred revenue balance at beginning of period (387,407) (315,600) Ending balance $ 484,009 $ 395,682 Allowance for Credit Losses The following is a summary of the changes in the Company’s allowance for credit losses (in thousands): Nine Months Ended January 31, 2023 2022 Beginning balance $ 2,700 $ 2,344 Bad debt expense 1,276 2,449 Accounts written off (1,781) (2,064) Ending balance $ 2,195 $ 2,729 |