Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Jan. 31, 2021 | Feb. 28, 2021 | Jul. 31, 2020 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 31, 2021 | ||
Current Fiscal Year End Date | --01-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-38926 | ||
Entity Registrant Name | Slack Technologies, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 26-4400325 | ||
Entity Address, Address Line One | 500 Howard Street | ||
Entity Address, City or Town | San Francisco | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94105 | ||
City Area Code | 415 | ||
Local Phone Number | 630-7943 | ||
Title of 12(b) Security | Class A Common Stock, $0.0001 par value per share | ||
Trading Symbol | WORK | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 14.1 | ||
Entity Central Index Key | 0001764925 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Class A Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 502,550,914 | ||
Class B Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 79,095,890 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 1,081,357 | $ 498,999 |
Marketable securities | 505,895 | 269,593 |
Accounts receivable, net | 237,439 | 145,844 |
Prepaid expenses and other current assets | 59,702 | 55,967 |
Total current assets | 1,884,393 | 970,403 |
Restricted cash | 38,490 | 38,490 |
Strategic investments | 68,161 | 28,814 |
Property and equipment, net | 87,908 | 102,340 |
Operating lease right-of-use assets | 219,195 | 197,830 |
Intangible assets, net | 17,885 | 13,530 |
Goodwill | 76,204 | 48,598 |
Other assets | 41,464 | 41,701 |
Total assets | 2,433,700 | 1,441,706 |
Current liabilities: | ||
Accounts payable | 13,145 | 16,893 |
Accrued compensation and benefits | 108,868 | 65,196 |
Accrued expenses and other current liabilities | 29,864 | 32,123 |
Operating lease liability | 34,930 | 30,465 |
Deferred revenue | 510,311 | 375,263 |
Total current liabilities | 697,118 | 519,940 |
Convertible senior notes, net | 651,398 | 0 |
Operating lease liability, noncurrent | 225,266 | 196,378 |
Deferred revenue, noncurrent | 294 | 1,451 |
Other liabilities | 2,183 | 38 |
Total liabilities | 1,576,259 | 717,807 |
Commitments and contingencies (Note 11) | ||
Stockholders’ equity: | ||
Common stock | 58 | 56 |
Additional paid-in-capital | 2,371,676 | 1,945,446 |
Accumulated other comprehensive income (loss) | 102 | (71) |
Accumulated deficit | (1,537,043) | (1,236,621) |
Total Slack Technologies, Inc. stockholders’ equity | 834,793 | 708,810 |
Noncontrolling interest | 22,648 | 15,089 |
Total stockholders’ equity | 857,441 | 723,899 |
Total liabilities and stockholders’ equity | $ 2,433,700 | $ 1,441,706 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 31, 2021 | Jan. 31, 2020 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Class A Common Stock | ||
Common stock, number of shares authorized (in shares) | 5,000,000,000 | 5,000,000,000 |
Common stock, number of shares issued (in shares) | 501,494,000 | 360,557,000 |
Common stock, number of shares outstanding (in shares) | 501,494,000 | 360,557,000 |
Class B Common Stock | ||
Common stock, number of shares authorized (in shares) | 700,000,000 | 700,000,000 |
Common stock, number of shares issued (in shares) | 79,091,000 | 194,803,000 |
Common stock, number of shares outstanding (in shares) | 79,091,000 | 194,803,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Income Statement [Abstract] | |||
Revenue | $ 902,610 | $ 630,422 | $ 400,552 |
Cost of revenue | 121,692 | 97,191 | 51,301 |
Gross profit | 780,918 | 533,231 | 349,251 |
Operating expenses: | |||
Research and development | 382,145 | 457,364 | 157,538 |
Sales and marketing | 460,709 | 402,780 | 233,191 |
General and administrative | 221,148 | 261,365 | 112,730 |
Total operating expenses | 1,064,002 | 1,121,509 | 503,459 |
Loss from operations | (283,084) | (588,278) | (154,208) |
Interest expense | (38,105) | (858) | (434) |
Interest income and other income, net | 28,386 | 21,368 | 16,580 |
Loss before income taxes | (292,803) | (567,768) | (138,062) |
Provision for (benefit from) income taxes | (315) | 589 | 840 |
Net loss | (292,488) | (568,357) | (138,902) |
Net income attributable to noncontrolling interest | 7,934 | 2,701 | 1,781 |
Net loss attributable to Slack | $ (300,422) | $ (571,058) | $ (140,683) |
Basic and diluted net loss per share: | |||
Net loss per share attributable to Slack common stockholders, basic and diluted (in dollars per share) | $ (0.53) | $ (1.43) | $ (1.16) |
Weighted-average shares used in computing net loss per share attributable to Slack common stockholders, basic and diluted (in shares) | 567,152 | 399,461 | 121,732 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (292,488) | $ (568,357) | $ (138,902) |
Other comprehensive income, net of tax: | |||
Change in unrealized gain or loss on marketable securities | 173 | 427 | 591 |
Other comprehensive income, net of tax | 173 | 427 | 591 |
Comprehensive loss | (292,315) | (567,930) | (138,311) |
Comprehensive income attributable to noncontrolling interest | 7,934 | 2,701 | 1,781 |
Comprehensive loss attributable to Slack | $ (300,249) | $ (570,631) | $ (140,092) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Restricted stock units | Series H Preferred Stock | Series H-1 Preferred Stock | Convertible Preferred Stock | Convertible Preferred StockSeries H Preferred Stock | Convertible Preferred StockSeries H-1 Preferred Stock | Common Stock | Common StockRestricted stock awards | Common StockRestricted stock units | Additional Paid-In-Capital | Additional Paid-In-CapitalRestricted stock units | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Noncontrolling Interest |
Beginning of period (in shares) at Jan. 31, 2018 | 337,483 | 119,735 | |||||||||||||
Beginning of period at Jan. 31, 2018 | $ 519,288 | $ 965,221 | $ 12 | $ 71,885 | $ (1,089) | $ (524,880) | $ 8,139 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Exercise of stock options (in shares) | 4,888 | ||||||||||||||
Exercise of stock options | 4,167 | $ 1 | 4,166 | ||||||||||||
Vesting of early exercised stock options | 366 | 366 | |||||||||||||
Issuance of stock (in shares) | 33,470 | 2,419 | 900 | ||||||||||||
Issuance of stock | 6,084 | $ 398,082 | $ 28,798 | $ 398,082 | $ 28,798 | 6,084 | |||||||||
Issuance of restricted stock awards (RSAs), net of cancellation (in shares) | 2,178 | ||||||||||||||
Repurchase of early exercised stock options (in shares) | (128) | ||||||||||||||
Other comprehensive income | 591 | 591 | |||||||||||||
Stock-based compensation | 23,132 | 23,132 | |||||||||||||
Net income (loss) | (138,902) | (140,683) | 1,781 | ||||||||||||
End of period (in shares) at Jan. 31, 2019 | 373,372 | 127,573 | |||||||||||||
End of period at Jan. 31, 2019 | 841,606 | $ 1,392,101 | $ 13 | 105,633 | (498) | (665,563) | 9,920 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Exercise of stock options (in shares) | 13,268 | ||||||||||||||
Exercise of stock options | 13,620 | $ 1 | 13,619 | ||||||||||||
Vesting of early exercised stock options | 260 | 260 | |||||||||||||
Issuance of stock (in shares) | 40,318 | ||||||||||||||
Issuance of restricted stock awards (RSAs), net of cancellation (in shares) | 495 | ||||||||||||||
Repurchase of early exercised stock options (in shares) | (2) | ||||||||||||||
Conversion of convertible preferred stock to common stock in connection with direct listing (in shares) | (373,372) | 373,372 | |||||||||||||
Conversion of convertible preferred stock to common stock in connection with direct listing | 0 | $ (1,392,101) | $ 38 | 1,392,063 | |||||||||||
Issuance of common stock upon settlement of restricted stock units (RSUs) | $ 0 | $ 4 | $ (4) | ||||||||||||
Issuance of common stock for employee share purchase plan (in shares) | 336 | ||||||||||||||
Issuance of common stock for employee share purchase plan | 7,351 | 7,351 | |||||||||||||
Capital contributions from noncontrolling interest holders | 3,840 | 3,840 | |||||||||||||
Distributions to noncontrolling interest holders | (1,372) | (1,372) | |||||||||||||
Other comprehensive income | 427 | 427 | |||||||||||||
Stock-based compensation | 426,524 | 426,524 | |||||||||||||
Net income (loss) | (568,357) | (571,058) | 2,701 | ||||||||||||
End of period (in shares) at Jan. 31, 2020 | 0 | 555,360 | |||||||||||||
End of period at Jan. 31, 2020 | $ 723,899 | $ 0 | $ 56 | 1,945,446 | (71) | (1,236,621) | 15,089 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Exercise of stock options (in shares) | 3,602 | 3,602 | |||||||||||||
Exercise of stock options | $ 7,746 | 7,746 | |||||||||||||
Vesting of early exercised stock options | 3,823 | 3,823 | |||||||||||||
Issuance of stock (in shares) | 18,517 | ||||||||||||||
Issuance of common stock upon settlement of restricted stock units (RSUs) | $ 0 | $ 2 | $ (2) | ||||||||||||
Equity component of convertible senior notes, net of issuance costs | 223,622 | 223,622 | |||||||||||||
Purchases of capped calls related to convertible senior notes | (105,570) | (105,570) | |||||||||||||
Shares issued related to a business combination (in shares) | 1,660 | ||||||||||||||
Shares issued related to a business combination | 39,495 | 39,495 | |||||||||||||
Issuance of common stock for employee share purchase plan (in shares) | 1,446 | ||||||||||||||
Issuance of common stock for employee share purchase plan | 29,753 | 29,753 | |||||||||||||
Distributions to noncontrolling interest holders | (375) | (375) | |||||||||||||
Other comprehensive income | 173 | 173 | |||||||||||||
Stock-based compensation | 227,363 | 227,363 | |||||||||||||
Net income (loss) | (292,488) | (300,422) | 7,934 | ||||||||||||
End of period (in shares) at Jan. 31, 2021 | 0 | 580,585 | |||||||||||||
End of period at Jan. 31, 2021 | $ 857,441 | $ 0 | $ 58 | $ 2,371,676 | $ 102 | $ (1,537,043) | $ 22,648 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Cash flows from operating activities: | |||
Net loss | $ (292,488) | $ (568,357) | $ (138,902) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 28,818 | 27,127 | 16,816 |
Loss on disposal of property and equipment | 0 | 39 | 2,281 |
Stock-based compensation | 227,363 | 426,524 | 23,132 |
Amortization of debt discount and issuance costs | 33,690 | 0 | 0 |
Non-cash operating lease expense | 37,615 | 8,963 | 0 |
Amortization of deferred contract acquisition costs | 15,767 | 8,153 | 3,154 |
Net amortization of bond premium (discount) debt securities available for sale | 2,173 | (2,180) | (3,057) |
Change in fair value of strategic investments | (20,278) | (5,599) | (3,701) |
Other non-cash adjustments | (2,052) | (249) | 546 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (92,361) | (58,202) | (50,305) |
Prepaid expenses and other assets | (16,601) | (20,594) | (53,072) |
Accounts payable | (3,411) | 6,726 | 2,846 |
Operating lease liabilities | (25,603) | (9,495) | 0 |
Accrued compensation and benefits | 43,669 | 19,045 | 22,504 |
Deferred revenue | 132,901 | 134,841 | 116,420 |
Other current and long-term liabilities | 3,237 | 20,869 | 20,279 |
Net cash provided by (used in) operating activities | 72,439 | (12,389) | (41,059) |
Cash flows from investing activities: | |||
Purchases of marketable securities | (561,161) | (290,188) | (967,055) |
Maturities of marketable securities | 316,979 | 517,583 | 727,616 |
Sales of marketable securities | 5,900 | 166,074 | 11,271 |
Acquisitions of businesses, net of cash acquired | 6,571 | 0 | (45,313) |
Acquisitions of intangible assets | (2,375) | (2,500) | (2,382) |
Purchases of property and equipment | (10,232) | (49,626) | (56,180) |
Sales of property and equipment | 0 | 0 | 762 |
Capitalized software development costs | 0 | 0 | (840) |
Purchases of strategic investments | (20,045) | (14,132) | (2,276) |
Proceeds from liquidation of strategic investments | 1,265 | 2,917 | 976 |
Net cash provided by (used in) investing activities | (263,098) | 330,128 | (333,421) |
Cash flows from financing activities: | |||
Proceeds from issuance of convertible senior notes, net of issuance costs | 841,329 | 0 | 0 |
Purchases of capped calls related to convertible senior notes | (105,570) | 0 | 0 |
Proceeds from exercise of stock options | 13,130 | 14,227 | 4,783 |
Payments of contingent consideration for acquisitions | (5,250) | (5,000) | 0 |
Issuance of common stock for employee stock purchase plan | 29,753 | 7,351 | 0 |
Net proceeds from issuance of convertible preferred stock | 0 | 0 | 426,880 |
Capital contributions from noncontrolling interest holders | 0 | 3,840 | 0 |
Distributions to noncontrolling interest holders | (375) | (1,372) | 0 |
Issuance of common stock to third party | 0 | 0 | 6,084 |
Other financing activities | 0 | (556) | (70) |
Net cash provided by financing activities | 773,017 | 18,490 | 437,677 |
Net increase in cash, cash equivalents and restricted cash | 582,358 | 336,229 | 63,197 |
Cash, cash equivalents and restricted cash at beginning of year | 537,489 | 201,260 | 138,063 |
Cash, cash equivalents and restricted cash at end of year | 1,119,847 | 537,489 | 201,260 |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes | 3,028 | 2,296 | 876 |
Cash paid for interest | 2,228 | 0 | 0 |
Non-cash investing and financing activities: | |||
Increase (decrease) in purchases of property and equipment included in liabilities | (1,992) | (11,435) | 6,334 |
Fair value of common stock issued as consideration for a business combination | 39,495 | 0 | 0 |
Vesting of early exercised stock options | 3,823 | 260 | 366 |
Unrealized short-term gain (loss) on marketable securities | 163 | 578 | 791 |
Acquisition of intangible assets, not yet paid | $ 1,000 | $ 0 | $ 0 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2021 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Business Slack Technologies, Inc. (the “Company” or “Slack”) operates a business technology software platform that brings together people, applications, and data and sells its offering under a software-as-a-service model. The Company was incorporated in Delaware in 2009 as Tiny Speck, Inc. In 2014, the Company changed its name to Slack Technologies, Inc. and publicly launched its current offering. The Company is headquartered in San Francisco, California. Fiscal Year The Company’s fiscal year ends on January 31. References to fiscal year 2021, for example, refer to the fiscal year ended January 31, 2021. Proposed Transaction with Salesforce On December 1, 2020 the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with salesforce.com, inc. (“Salesforce”), Skyline Strategies I Inc., a Delaware corporation and a wholly owned subsidiary of Salesforce (“Merger Sub I”), and Skyline Strategies II LLC, a Delaware limited liability company and a wholly owned subsidiary of Salesforce (“Merger Sub II”). The Merger Agreement provides for the merger of Merger Sub I with and into the Company, with the Company continuing as the surviving corporation and as a wholly owned subsidiary of Salesforce (the “First Merger”), immediately followed by a second merger of the surviving corporation into either Merger Sub II or Salesforce, with either Merger Sub II or Salesforce continuing as the surviving company (the “Second Merger” and together with the First Merger, the “Mergers”). Under the terms of the Merger Agreement, all of the Company’s issued and outstanding shares of Class A common stock and Class B common stock will be converted into the right to receive (a) 0.0776 shares of Salesforce common stock and (b) $26.79 in cash, without interest. The Mergers are intended to be treated as a single integrated transaction that will qualify as a “reorganization” within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended (the “Code”). As a result of the Mergers, the Company will cease to be a publicly traded company. The Merger Agreement contains customary representations, warranties, and covenants. The consummation of the Mergers is conditioned on the receipt of the approval of the Company’s stockholders, as well as the satisfaction of other customary closing conditions, including domestic and foreign regulatory approvals and performance in all material respects by each party of its obligations under the Merger Agreement. Consummation of the Mergers is not subject to a financing condition. In March 2021, the Company’s stockholders approved the proposal to adopt the Merger Agreement and approve the transactions contemplated thereby, including the Mergers. The Mergers are anticipated to close in the second quarter of the Company’s fiscal year 2022 (the quarter ending July 31, 2021), subject to Company receipt of required regulatory approvals, and other customary closing conditions. The Company cannot predict with certainty, however, whether and when all of the required closing conditions will be satisfied or if the Mergers will close. The Merger Agreement contains certain customary termination rights for the Company and Salesforce, including if the First Merger is not consummated by August 1, 2021, subject to two extensions of up to three months each in order to obtain required regulatory approvals. If the Merger Agreement is terminated under certain specified circumstances, including (i) a termination by the Company to enter into a superior proposal, (ii) a termination by Salesforce following a change or withdrawal of the Company’s board of directors’ recommendation of the Mergers to the Company’s stockholders, or (iii) a termination by Salesforce as a result of a material breach of the Company’s non-solicitation obligations under the Merger Agreement, then the Company will be obligated to pay to Salesforce a termination fee equal to $900.0 million in cash. The foregoing summary of the Merger Agreement and the transactions contemplated thereby does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the Merger Agreement, which is filed as Exhibit 2.1 of the Company’s Current Report on Form 8-K filed on December 1, 2020. Other than transaction expenses associated with the proposed merger of $8.7 million recorded in general and administrative expense in the accompanying consolidated statements of operations for the year ended January 31, 2021, the terms of the Merger Agreement did not impact the Company’s consolidated financial statements. Basis of Presentation and Consolidation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), and include the accounts of the Company and its wholly owned and majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The consolidated financial statements include 100% of the accounts of wholly owned and majority-owned subsidiaries and the ownership interest of minority investors is recorded as noncontrolling interest. Direct Listing On June 20, 2019, the Company completed a direct listing of its Class A common stock (the “Direct Listing”) on the New York Stock Exchange (“NYSE”). The Company incurred nonrecurring fees related to financial advisory service, audit, and legal expenses in connection with the Direct Listing and recorded $30.4 million in general and administrative expense for the year ended January 31, 2020. Prior to the Direct Listing, all shares of outstanding convertible preferred stock were converted into an equivalent number of shares of Class B common stock. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates are based on information available as of the date of the consolidated financial statements. On a regular basis, management evaluates these estimates and assumptions; however, actual results could materially differ from these estimates due to risks and uncertainties, including uncertainty in the current economic environment related to the outbreak of the novel coronavirus pandemic (“COVID-19”). The Company’s most significant estimates and judgments involve revenue recognition, stock-based compensation including the estimation of fair value of common stock, valuation of strategic investments, valuation of acquired goodwill and intangibles from acquisitions, period of benefit for deferred contract acquisition costs, fair value of the liability and equity components of convertible senior notes, and uncertain tax positions. Revenue Recognition The Company derives substantially all revenue from monthly and annual subscription fees earned from customers accessing Slack. The Company’s policy is to exclude sales and other indirect taxes when measuring the transaction price of its subscription agreements. The Company accounts for revenue contracts with customers through the following steps: • Identification of the contract, or contracts, with the customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of the revenue when, or as, the Company satisfies a performance obligation. Subscription revenue is recognized on a straight-line basis over the contractual term of the arrangement beginning on the date that the service is made available to the customer. The Company’s subscription service contracts are generally one month to thirty-six months in duration and are generally non-cancellable. Customers are billed either annually or monthly generally in advance of services. The contracts do not provide customers with the right to take possession of the software supporting Slack. The Company’s arrangements do not contain general rights of return. Amounts that have been invoiced are recorded in accounts receivable and in revenue or deferred revenue, depending on whether the performance obligation has been satisfied. For certain multi-year agreements, revenue recognition may occur in advance of invoicing, resulting in a contract asset when a conditional right to consideration exists and transfer of control for the services rendered. These contract assets are included in prepaid expenses and other current assets. The Company maintains a fair billing policy, under which certain customers maintain a credit balance if they have not used the entirety of the allotment of users for which they have paid during the contractual term of their respective arrangements. These credits, accounted for as a part of deferred revenue, may be carried over to offset billings related to increases in a customer’s number of active users and are not refundable for cash. A majority of the Company’s contracts give a right to bill for additional usage, and this is deemed variable consideration. The variable consideration is allocated to the distinct day the services are completed, as services provided to the additional users are specific to the period that the usage occurs. To the extent that the Company believes it is probable that a significant reversal would not occur, an estimate is made for the revenue associated with incremental usage during a period. The incremental revenue recognized associated with these estimates has not been material for any period presented. Cost of Revenue Cost of revenue consists primarily of expenses related to hosting Slack and providing ongoing customer experience support for paid customers, including employee compensation (including stock-based compensation) and other employee-related expenses for customer experience and technical operations staff, payments to outside service providers, third-party hosting costs, payment processing fees and amortization of internally-developed and purchased technology. Stock-Based Compensation The Company measures compensation for all stock-based payment awards, including stock options, restricted stock units (“RSUs”), restricted stock awards (“RSAs”), restricted stock, and purchase rights issued under the 2019 Employee Stock Purchase Plan (“ESPP”) granted to employees, directors, and nonemployees, based on the estimated fair value of the awards on the date of grant. The fair value of each stock option and purchase rights issued under the ESPP granted is estimated using the Black-Scholes option pricing model. Stock-based compensation is recognized on a straight-line basis over the requisite service period, except for the RSUs granted under the 2009 Stock Plan (the “2009 Plan”). Under the 2009 Plan, the Company granted RSUs to its employees and directors with both a service-based vesting condition and a performance-based vesting condition. The service-based vesting period for these awards was typically four years with a cliff vesting period of one year and continued vesting quarterly thereafter. The fair value of RSUs was estimated based on the fair market value of the Company’s common stock at the date of grant. On June 20, 2019, the performance vesting condition was satisfied upon the completion of the Direct Listing and as a result, the Company recorded cumulative stock-based compensation of $245.1 million related to all then-outstanding RSUs granted under the 2009 Plan. The Company recognizes stock compensation associated with the RSUs granted under the 2009 Plan using the accelerated attribution method over the requisite service period. The Company also granted stock options and RSAs to its employees and directors under the 2009 Plan with a service-based vesting condition. The service-based vesting period for these awards is typically four years with a cliff vesting period of one year and continued vesting monthly thereafter. The fair value of each stock option is estimated using the Black-Scholes option pricing model. The fair value of RSAs is estimated based on the fair market value of the Company’s common stock at the date of grant. Under the 2019 Stock Option and Incentive Plan (the “2019 Plan”), the Company grants RSUs and stock options to its employees and directors with a service-based vesting condition. The service-based vesting period for these awards is typically four years with a cliff vesting period of one year and continued vesting quarterly thereafter. Research and Development Costs Research and development costs are expensed as incurred and consist primarily of personnel costs and allocated overhead. Advertising Costs Advertising costs are expensed as incurred and were $45.7 million, $38.1 million, and $61.7 million for the years ended January 31, 2021, 2020, and 2019, respectively. Advertising costs are included in sales and marketing expense in the accompanying consolidated statements of operations. Income Taxes The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. A valuation allowance is established, when necessary, to reduce deferred tax assets to the amount that is more likely than not to be realized. The Company accounts for uncertain tax positions based on an evaluation as to whether it is more likely than not that a tax position will be sustained on audit, including resolution of any related appeals or litigation processes. This evaluation is based on all available evidence and assumes that the appropriate tax authorities have full knowledge of all relevant information concerning the tax position. The tax benefit recognized is based on the largest amount that is greater than 50% likely of being realized upon ultimate settlement. The Company includes interest expense and penalties related to its uncertain tax positions in interest expense and other expense, respectively. Financial Information about Segments and Geographical Areas The Company has one business activity and there are no segment managers who are held accountable for operations, results of operations, or plans for levels or components below the consolidated unit level. The Company’s chief operating decision maker is its Chief Executive Officer, who reviews the financial information presented on a consolidated basis for purposes of allocating resources and evaluating the Company’s financial performance. Accordingly, the Company has determined that it operates in a single operating and reporting segment. See Note 2 and 16 for information regarding the Company’s revenue and long-lived assets by geographic area. Foreign Currency Translation The functional currency of the Company’s foreign subsidiaries is the U.S. dollar. Accordingly, each foreign subsidiary remeasures monetary assets and liabilities at period-end exchange rates, while nonmonetary items are remeasured at historical rates. Revenue and expense accounts are remeasured at the average exchange rate in effect during the year. Remeasurement adjustments are recognized in the accompanying consolidated statements of operations as transaction gains or losses in the year of occurrence as other income (expense). Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Cash equivalents consist of funds deposited into money market funds, and commercial paper. Restricted cash consists of cash deposited with financial institutions as collateral for the Company’s obligations under its facility leases. A reconciliation of cash, cash equivalents and restricted cash to the accompanying consolidated statements of cash flows is as follows (in thousands): As of January 31, 2021 2020 Cash and cash equivalents $ 1,081,357 $ 498,999 Restricted cash 38,490 38,490 Total cash, cash equivalents and restricted cash $ 1,119,847 $ 537,489 Marketable Securities The Company determines the appropriate classification of its investments in marketable securities at the time of purchase and reevaluates such designation at each balance sheet date. The Company has classified and accounted for its marketable securities as available-for-sale. All of the Company’s available-for-sale investments consist of debt securities, adjusted for amortization of premiums and discounts to maturity and such amortization is included in interest income and other income, net on the accompanying consolidated statements of operations. After consideration of the Company’s capital preservation objectives, as well as its liquidity requirements, the Company may sell securities prior to their stated maturities. As the Company views these securities as available to support current operations, it has classified all available-for-sale securities as short-term. The Company carries its available-for-sale securities at fair value and reports the unrealized gains and losses as a component of stockholders’ equity, except for unrealized losses determined to be other than temporary. The Company evaluates its investments periodically for possible other-than-temporary impairment. A decline in fair value below the amortized costs of debt securities is considered an other-than-temporary impairment if the Company has the intent to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of the entire amortized cost basis. In those instances, an impairment charge equal to the difference between the fair value and the amortized cost basis is recognized in earnings. Regardless of the Company’s intent or requirement to sell a debt security, impairment is considered other than temporary if the Company does not expect to recover the entire amortized cost basis. Strategic Investments In December 2015, the Company committed $13.0 million to a newly formed entity, Slack Fund L.L.C. (“Slack Fund”), in exchange for a 52% voting interest. Slack Fund is in the business of purchasing, selling, investing and trading in minority equity and convertible debt securities of privately-held companies that develop applications that have potential for substantial contribution to Slack and its ecosystem. Slack Fund has a duration of ten years and its duration may be extended for three In March 2021, the Company entered into a transfer agreement by and among Slack (as manager and a member of Slack Fund), Slack Fund, and each of the members of Slack Fund (the “Transfer Agreement”). Pursuant to the Transfer Agreement, the Company purchased all the outstanding LLC interests from the other members for $22.6 million. Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk primarily consist of cash and cash equivalents, restricted cash, marketable securities, and accounts receivable. For cash, cash equivalents, restricted cash, and marketable securities, the Company is exposed to credit risk in the event of default by the financial institutions to the extent of the amounts recorded on the accompanying consolidated balance sheets that are in excess of federal insurance limits. For accounts receivable, the Company is exposed to credit risk in the event of nonpayment by customers to the extent of the amounts recorded on the accompanying consolidated balance sheets. The Company sells its services to a wide variety of customers. If the financial condition or results of operations of any significant customers deteriorates substantially, operating results could be adversely affected. To reduce credit risk, management performs credit evaluations of the financial condition of significant customers. The Company does not require collateral from its credit customers and maintains reserves for estimated credit losses on customer accounts when considered necessary. Actual credit losses may differ from the Company’s estimates. No customer accounted for 10% or greater of total accounts receivable as of January 31, 2021 and 2020. There were no customers representing 10% or greater of revenue for the years ended January 31, 2021, 2020, and 2019. Fair Value of Financial Instruments The Company records its financial assets and liabilities at fair value. The carrying amounts of the Company’s financial instruments, which include cash, restricted cash, accounts receivable, and accounts payable, approximate their fair values due to their short-term nature. The accounting guidance for fair value provides a framework for measuring fair value, clarifies the definition of fair value, and expands disclosures regarding fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows: • Level 1 inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. • Level 2 inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. • Level 3 inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounts Receivable, Net Trade accounts receivable are recorded at invoiced amounts and do not bear interest. The Company generally does not require collateral and performs ongoing credit evaluations of its customers and provides for expected losses. The expectation of collectability is based on the Company’s review of credit profiles of customers, contractual terms and conditions, current economic trends, and historical payment experience. If events or changes in circumstances indicate that specific receivable balances may be impaired, further consideration is given to the collectability of those balances and an allowance is recorded accordingly. Past-due receivable balances are written off when internal collection efforts have been unsuccessful in collecting the amount due. The allowance for doubtful accounts reflects the Company’s best estimate of probable losses inherent in the receivables portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other currently available evidence. The Company has not experienced significant credit losses from accounts receivable. The allowance for doubtful accounts and the changes in the allowance for doubtful accounts were not material, for the years ended January 31, 2021 and 2020. Deferred Contract Acquisition Costs, Net Sales commissions earned by the Company’s sales force are considered to be incremental and recoverable costs of obtaining a contract with a customer. As a result, these amounts have been capitalized as deferred contract acquisition costs within prepaid expenses and other current assets and other assets on the accompanying consolidated balance sheets. Deferred contract acquisition costs are typically amortized over a period of benefit of four years. The period of benefit is estimated by considering factors such as historical customer attrition rates, the useful life of the Company’s technology, and the impact of competition in its industry as well as other factors. Amortized costs are included in sales and marketing expense in the accompanying consolidated statements of operations. Property and Equipment, Net Property and equipment, net is stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful life of the related asset, which is typically two years for computer equipment and software, five years for furniture and fixtures, and in the case of leasehold improvements, the remaining term of the lease, unless the useful life of the asset is shorter. Maintenance and repairs are charged to expense as incurred. Internal-Use Software Development Costs The Company capitalizes qualifying internal-use software development costs and implementation costs incurred in cloud computing arrangements that are incurred during the application development stage. Capitalization of costs begins when two criteria are met: (i) the preliminary project stage is completed and (ii) it is probable that the software will be completed and used for its intended function. Capitalization ceases when the software is substantially complete and ready for its intended use, including the completion of all significant testing. Costs related to preliminary project activities and post-implementation operating activities are expensed as incurred. Capitalized costs are included in property and equipment. These costs are amortized over the estimated useful life of the software (generally two years) on a straight-line basis. Management evaluates the useful life of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. The amortization of costs related to the platform applications is included in cost of revenue. Business Combinations The Company applies the acquisition method of accounting for business combinations. Under this method of accounting, all assets acquired and liabilities assumed are recorded at their respective fair values at the date of the acquisition. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, discount rates, intangibles, and other asset lives, among other items. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Market participants are assumed to be buyers and sellers in the principal (most advantageous) market for the asset or liability. Additionally, fair value measurements for an asset assume the highest and best use of that asset by market participants. As a result, the Company may be required to value the acquired assets at fair value measures that do not reflect its intended use of those assets. Use of different estimates and judgments could yield different results. Any excess of the purchase price over the fair value of the net assets acquired is recognized as goodwill. If the fair value of net assets acquired exceeds the fair value of purchase price, a gain on bargain purchase is recognized within the accompanying consolidated statements of operations. Although the Company believes the assumptions and estimates it has made are reasonable and appropriate, they are based in part on historical experience and information that may be obtained from the management of the acquired company and are inherently uncertain. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill for facts and considerations that were known at the acquisition date. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded within the accompanying consolidated statements of operations. Accounting for Impairment of Long-Lived Assets The Company evaluates long-lived assets, such as property and equipment and acquired intangibles, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets held and used is measured by comparison of the carrying amount of an asset or an asset group to estimated undiscounted future net cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset exceeds these estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the assets exceeds the fair value of the asset or asset group, based on discounted cash flows. There were no material impairment charges recorded for the years ended January 31, 2021, 2020, and 2019. Goodwill Goodwill is not amortized, but rather is tested for impairment at least annually or more frequently if indicators of impairment are present. The Company operates as one reporting unit and performs its annual goodwill impairment analysis as of the first day of the fourth quarter of each year. In assessing impairment on goodwill, the Company may bypass a qualitative assessment and proceeds directly to performing a quantitative evaluation of the fair value of its single reporting unit, in order to compare it against the carrying value of the reporting unit. A goodwill impairment charge is recognized for the amount by which the reporting unit’s fair value is less than its carrying value. Any loss recognized will not exceed the total amount of goodwill allocated to that reporting unit. Based on the results of the goodwill impairment analysis, the Company determined that no impairment charge needed to be recorded for any periods presented. Operating Leases The Company leases real estate facilities under non-cancelable operating leases with various expiration dates through fiscal year 2031. The Company determines if an arrangement contains a lease at inception based on whether there is an identified property, plant or equipment and whether the Company controls the use of the identified asset throughout the period of use. The Company adopted the Accounting Standard Update (“ASU”) No. 2016-02, Leases ( Topic 842 ) on November 1, 2019. Operating leases are included in operating lease right-of-use (“ROU”) assets and in operating lease liabilities in the accompanying consolidated balance sheets. Operating lease ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at the lease inception date based on the present value of lease payments over the lease term discounted based on the more readily determinable of (i) the rate implicit in the lease or (ii) the Company’s incremental borrowing rate (which is the estimated rate the Company would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease). Because the Company’s operating leases generally do not provide an implicit rate, the Company estimates its incremental borrowing rate based on the information available at lease commencement date for borrowings with a similar term. The Company’s operating lease ROU assets are measured based on the corresponding operating lease liability adjusted for (i) payments made to the lessor at or before the commencement date, (ii) initial direct costs incurred and (iii) tenant incentives under the lease. The Company does not assume renewals or early terminations unless it is reasonably certain to exercise these options at commencement. The Company does not allocate consideration between lease and non-lease components. Variable lease payments are recognized in the period in which the obligation for those payments are incurred. In addition, the Company does not recognize ROU assets or lease liabilities for leases with a term of 12 months or less of all asset classes. Operating lease expense is recognized on a straight-line basis over the lease term. Lease accounting prior to the adoption of Topic 842 (ASC 840) For leases that contain rent escalation, rent concession provisions, or tenant improvement allowances, the Company recorded the total rent expense during the lease term on a straight-line basis over the term of the lease. Convertible Senior Notes In April 2020, the Company issued $862.5 million aggregate principal amoun |
Revenue
Revenue | 12 Months Ended |
Jan. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Contract Liability Balances Contract liabilities consist of deferred revenue. The changes in deferred revenue were as follows (in thousands): Year Ended January 31, 2021 Balance, beginning of year $ 376,714 Billings 1,036,501 Revenue (902,610) Balance, end of year $ 510,605 Less than half of revenue recognized in the year ended January 31, 2021 was from the deferred revenue balance as of January 31, 2020. Remaining Performance Obligations As of January 31, 2021, the aggregate balance of remaining performance obligations that were unsatisfied or partially unsatisfied at the end of the reporting period was $860.0 million, of which 69% is expected to be recognized in the twelve months following January 31, 2021, with the balance to be recognized as revenue thereafter. Disaggregation of Revenue The following table shows the Company’s revenue by geographic areas, as determined based on the billing address of its customers (in thousands): Year ended January 31, 2021 2020 2019 United States $ 554,494 $ 394,716 $ 255,155 International 348,116 235,706 145,397 Total $ 902,610 $ 630,422 $ 400,552 No individual foreign country contributed in excess of 10% of revenue for the years ended January 31, 2021, 2020, and 2019. Deferred Contract Acquisition Costs, Net The Company deferred incremental costs of obtaining a contract of $33.8 million, $23.6 million, and $15.8 million during the years ended January 31, 2021, 2020, and 2019, respectively. Deferred contract acquisition costs, net included in prepaid expenses and other current assets were $19.3 million and $11.2 million as of January 31, 2021 and 2020, respectively. Deferred contract acquisition costs, net included in other assets were $31.3 million and $21.4 million as of January 31, 2021 and 2020, respectively. Amortization of deferred contract acquisition costs were $15.8 million, $8.2 million, and $3.2 million for the years ended January 31, 2021, 2020, and 2019, respectively. There was no impairment loss in relation to the deferred contract acquisition costs for any period presented in the accompanying consolidated statements of operations. |
Cash, Cash Equivalents and Mark
Cash, Cash Equivalents and Marketable Securities | 12 Months Ended |
Jan. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, and Marketable Securities | Cash, Cash Equivalents and Marketable Securities The following tables summarize amortized costs, unrealized gains and losses, and estimated fair value related to cash, cash equivalents, and marketable securities on the Company’s consolidated balance sheets (in thousands): As of January 31, 2021 Amortized Unrealized Unrealized Fair value Cash and cash equivalents: Cash $ 98,280 $ — $ — $ 98,280 Money market funds 407,670 — — 407,670 Certificates of deposit 75,432 — — 75,432 U.S. government securities 499,975 1 (1) 499,975 Total cash and cash equivalents 1,081,357 1 (1) 1,081,357 Marketable securities: Certificates of deposit 5,500 35 — 5,535 U.S. agency securities 162,673 142 (6) 162,809 U.S. government securities 292,091 57 (5) 292,143 Corporate bonds 45,184 224 — 45,408 Total marketable securities 505,448 458 (11) 505,895 Total cash, cash equivalents and marketable securities $ 1,586,805 $ 459 $ (12) $ 1,587,252 As of January 31, 2020 Amortized Unrealized Unrealized Fair value Cash and cash equivalents: Cash $ 71,593 $ — $ — $ 71,593 Money market funds 357,524 — — 357,524 Commercial paper 69,891 — (9) 69,882 Total cash and cash equivalents 499,008 — (9) 498,999 Marketable securities: Commercial paper 19,799 4 (8) 19,795 U.S. agency securities 29,460 55 — 29,515 U.S. government securities 97,071 102 (1) 97,172 International government securities 8,109 6 — 8,115 Corporate bonds 114,871 139 (14) 114,996 Total marketable securities 269,310 306 (23) 269,593 Total cash, cash equivalents and marketable securities $ 768,318 $ 306 $ (32) $ 768,592 The Company periodically evaluates its investments for other-than-temporary declines in fair value. The unrealized losses on the available-for-sale securities were primarily due to unfavorable changes in interest rates subsequent to the initial purchase of these securities. Gross unrealized losses of the Company’s available-for-sale securities that have been in a continuous unrealized loss position for twelve months or longer was none and immaterial as of January 31, 2021 and 2020, respectively. The Company expects to recover the full carrying value of its available-for-sale securities in an unrealized loss position as it does not intend or anticipate a need to sell these securities prior to recovering the associated unrealized losses. As a result, the Company does not consider any portion of the unrealized losses as of January 31, 2021 or 2020 to represent an other-than temporary impairment or credit losses. The following table classifies marketable securities by contractual maturities (in thousands): As of January 31, 2021 2020 Due in one year $ 372,978 $ 190,344 Due in one to two years 132,917 79,249 Total $ 505,895 $ 269,593 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value MeasurementsThe Company’s money market funds and sweep account are classified within Level 1 of the fair value hierarchy because they are valued using quoted prices in active markets. The Company’s commercial paper, U.S. agency and government securities, international government securities, and corporate bonds are classified within Level 2 of the fair value hierarchy because they have been valued using inputs other than quoted prices in active markets that are observable directly or indirectly. The Company’s strategic investments in privately held companies are classified within Level 3 of the fair value hierarchy because they have been valued using unobservable inputs for which the Company has been required to develop its own assumptions. Realized and unrealized gains and losses relating to the strategic investments are recorded in interest income and other income, net in the accompanying consolidated statements of operations. The following table provides the financial instruments measured at fair value on a recurring basis, within the fair value hierarchy (in thousands): As of January 31, 2021 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 407,670 $ — $ — $ 407,670 Certificates of deposit — 75,432 — 75,432 U.S. government securities — 499,975 — 499,975 Total cash equivalents $ 407,670 $ 575,407 $ — $ 983,077 Marketable securities: Certificates of deposit $ — $ 5,535 $ — $ 5,535 U.S. agency securities — 162,809 — 162,809 U.S. government securities — 292,143 — 292,143 Corporate bonds — 45,408 — 45,408 Total marketable securities $ — $ 505,895 $ — $ 505,895 Noncurrent assets: Strategic investments $ — $ — $ 68,161 $ 68,161 As of January 31, 2020 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 357,524 $ — $ — $ 357,524 Commercial paper — 69,882 — 69,882 Total cash equivalents $ 357,524 $ 69,882 $ — $ 427,406 Marketable securities: Commercial paper $ — $ 19,795 $ — $ 19,795 U.S. agency securities — 29,515 — 29,515 U.S. government securities — 97,172 — 97,172 International government securities — 8,115 — 8,115 Corporate bonds — 114,996 — 114,996 Total marketable securities $ — $ 269,593 $ — $ 269,593 Noncurrent assets: Strategic investments $ — $ — $ 28,814 $ 28,814 The following table presents additional information about Level 3 assets measured at fair value on a recurring basis (in thousands): Year ended January 31, 2021 2020 Balance at beginning of year $ 28,814 $ 12,334 Purchases 20,045 14,132 Proceeds from liquidation (976) (3,251) Realized gains (losses) (91) 2,285 Unrealized gains relating to investments still held at reporting date 20,369 3,314 Balance at end of year $ 68,161 $ 28,814 In February 2021, the Company recorded additional $20.2 million unrealized gains relating to the strategic investments held at January 31, 2021, due to observable market transactions. Convertible Senior Notes As of January 31, 2021, the fair value of the Notes was approximately $1.26 billion. The fair value was determined based on the quoted price for the Notes in an inactive market on the last trading day of the reporting period and is considered as Level 2 in the fair value hierarchy. Based on the closing price of the Company’s Class A common stock of $42.17 on the last trading day of the quarter, the if-converted values of the Notes exceeded the remaining principal amounts by $311 million as of January 31, 2021. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Jan. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net The following is a summary of the Company’s property and equipment by category (in thousands): As of January 31, 2021 2020 Leasehold improvements $ 106,222 $ 98,770 Furniture and fixtures 29,956 27,384 Capitalized internal-use software costs 4,241 4,241 Computer equipment 4,189 3,183 Construction in progress 2,963 10,345 Property and equipment, gross 147,571 143,923 Less: accumulated depreciation and amortization (59,663) (41,583) Property and equipment, net $ 87,908 $ 102,340 Depreciation and amortization expense was $22.9 million, $23.0 million, and $15.0 million for the years ended January 31, 2021, 2020, and 2019, respectively. The Company capitalized internal-use software costs of $0, $0, and $0.8 million for the years ended January 31, 2021, 2020, and 2019, respectively. Amortization expense of capitalized internal-use software costs totaled $0.4 million, $0.5 million, and $0.3 million for the years ended January 31, 2021, 2020, and 2019, respectively. The net carrying value of capitalized internal-use software at January 31, 2021 and 2020 was $0 and $0.4 million, respectively. |
Operating Leases
Operating Leases | 12 Months Ended |
Jan. 31, 2021 | |
Leases [Abstract] | |
Operating Leases | Operating Leases The Company leases real estate facilities under non-cancelable operating leases with various expiration dates through fiscal year 2031. The Company adopted Topic 842 as of November 1, 2019, using the modified retrospective approach. For the year ended January 31, 2021, the Company recorded operating lease costs of $46.9 million including variable operating lease costs of $6.7 million and short-term leases of $2.6 million. In the fourth quarter of fiscal year 2020, the Company recorded operating lease costs of $11.7 million including variable operating lease costs of $1.7 million and short-term leases of $0.7 million. The following table sets forth a summary of and other information pertaining to the Company’s operating leases since the adoption of Topic 842 (dollars in thousands): Year ended January 31, 2021 2020 Operating cash flows used for operating leases $ 25,603 $ 9,495 Operating lease liabilities arising from obtaining ROU assets $ 61,685 $ 4,832 Weighted average remaining terms 8.0 years 8.3 years Weighted average discount rate 5.2 % 5.2 % Rent expense, net of sublease income under ASC 840 was $26.3 million for the nine months ended October 31, 2019 and $27.7 million and for the year ended January 31, 2019. Future minimum lease payments under non-cancelable operating leases with initial lease terms in excess of one year as of January 31, 2021 as follows (in thousands): Year ending January 31, 2022 $ 34,943 2023 52,150 2024 50,794 2025 53,232 2026 53,980 Thereafter 213,709 Gross lease payments 458,808 Less: Imputed interest (70,857) Less: Tenant improvement receivables (24,294) Less: Leases executed but not yet commenced (103,461) Present value of lease liabilities $ 260,196 |
Business Combination
Business Combination | 12 Months Ended |
Jan. 31, 2021 | |
Business Combinations [Abstract] | |
Business Combination | Business Combination On June 29, 2020, the Company completed its acquisition of all issued and outstanding shares of Rimeto Inc. (“Rimeto”), a provider of an enterprise directory platform that enables users to stay connected with detailed employee profiles and information. The Company effected the business combination by issuing 1,659,715 shares of its Class A common stock, of which 740,837 shares are subject to a re-vesting restriction over four years from the closing of the acquisition. Post-combination stock-based compensation for the re-vesting restricted stock, net of fair value of the pre-combination service portion, which is recorded as purchase price, is $11.4 million and is being ratably recognized over the requisite service period of four years. The acquisition date fair value of the purchase price was $40.1 million, which consisted of the following (in thousands): Fair Value Cash $ 653 Fair value of Class A common stock transferred 28,060 Fair value of the pre-combination service portion of restricted stock 11,435 Total purchase price $ 40,148 The following table presents the purchase price allocation recorded in the Company’s consolidated balance sheet as of the date of acquisition (in thousands): Fair Value Cash and cash equivalents $ 7,224 Accounts receivable and other assets 732 Operating lease right-of-use assets 616 Intangible assets 7,000 Goodwill 27,606 Accounts payable and other liabilities (464) Operating lease liability (637) Deferred revenue (990) Deferred tax liability (939) Total purchase price $ 40,148 The acquisition was accounted for as a business combination and the total purchase price was allocated to the net tangible and intangible assets and liabilities based on their fair values on the acquisition date and the excess was recorded as goodwill. The goodwill was primarily attributed to the value of synergies created with the Company’s current and future offerings and the value of the assembled workforce. Both goodwill and intangible assets to be fully deductible for income tax purposes. The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands): Fair Value Useful Life Developed technology $ 4,900 3 years Customer relationships 2,100 3 years Total identifiable intangible assets $ 7,000 In connection with the acquisition, the Company agreed to grant RSUs to Rimeto employees who joined the Company upon the effective date of the acquisition, with a value totaling approximately $19.0 million. The amount is being ratably recognized as stock-based compensation over the requisite service period of four years. The Company incurred costs related to this acquisition of $1.5 million that were recorded in general and administrative expenses in the accompanying consolidated statements of operations for the year ended January 31, 2021. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Jan. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net Goodwill The following table reflects the changes in the carrying amount of goodwill (in thousands): Year ended January 31, 2021 2020 Balance at beginning of year $ 48,598 $ 48,598 Addition due to business combination 27,606 — Balance at end of year $ 76,204 $ 48,598 Intangible Assets, Net Intangible assets as of January 31, 2021 and 2020 consist of the following (in thousands, except years): As of January 31, 2021 Weighted-average Gross carrying Accumulated Net carrying Customer relationships 4.0 years $ 11,200 $ 3,712 $ 7,488 Developed technology 2.0 years 13,427 8,162 5,265 Patents and licenses 5.6 years 5,875 743 5,132 Assembled workforce 0.0 years 1,198 1,198 — Total $ 31,700 $ 13,815 $ 17,885 As of January 31, 2020 Weighted-average Gross carrying Accumulated Net carrying Customer relationships 5.5 years $ 9,100 $ 2,004 $ 7,096 Developed technology 1.6 years 8,527 4,976 3,551 Patents 4.9 years 2,500 42 2,458 Assembled workforce 0.7 years 1,198 773 425 Total $ 21,325 $ 7,795 $ 13,530 The Company records amortization expense associated with customer relationships, developed technology, assembled workforce and patents in sales and marketing expense, cost of revenue, research and development expense and general and administrative expense, respectively, in the accompanying consolidated statements of operations. Amortization expense of intangible assets was $6.0 million, $4.2 million, and $1.8 million for the years ended January 31, 2021, 2020, and 2019, respectively. As of January 31, 2021, expected amortization expense relating to intangible assets for each of the next five years and thereafter is as follows (in thousands): Year ending January 31, 2022 $ 5,934 2023 4,615 2024 3,254 2025 2,240 2026 1,078 Thereafter 764 Total $ 17,885 |
Accrued Compensation and Benefi
Accrued Compensation and Benefits | 12 Months Ended |
Jan. 31, 2021 | |
Compensation Related Costs [Abstract] | |
Accrued Compensation and Benefits | Accrued Compensation and Benefits Accrued compensation and benefits consists of the following (in thousands): As of January 31, 2021 2020 Accrued bonus $ 47,929 $ 28,829 Other 60,939 36,367 Accrued compensation and benefits $ 108,868 $ 65,196 |
Debt and Financing Arrangements
Debt and Financing Arrangements | 12 Months Ended |
Jan. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | Debt and Financing Arrangements Convertible Senior Notes On April 9, 2020, the Company issued $862.5 million in aggregate principal amount of the Notes in a private offering pursuant to an Indenture dated April 9, 2020 (the “Indenture”), including the initial purchasers’ exercise in full of their option to purchase an additional $112.5 million principal amount of the Notes. The total net proceeds from the debt offering, after deducting initial purchaser discounts and debt issuance costs, paid or payable were $841.3 million. The Notes are senior, unsecured obligations of the Company and will accrue interest payable semiannually in arrears on April 15 and October 15 of each year, which began on October 15, 2020, at a rate of 0.50% per year. The Notes will mature on April 15, 2025, unless earlier converted, redeemed, or repurchased. The Notes are convertible into cash, shares of the Company’s Class A common stock or a combination of cash and shares of the Company’s Class A common stock, at the Company’s election. Holders of the Notes may convert all or any portion of their Notes at their option at any time prior to the close of business on January 14, 2025 only under the following circumstances: • During any fiscal quarter commencing after the fiscal quarter ending on July 31, 2020 (and only during such fiscal quarter), if the last reported sale price of the Company’s Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • During the five business day period after any ten consecutive trading day period (the “measurement period”) in which the “trading price” (as defined in the Indenture) per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s Class A common stock and the conversion rate on each such trading day; or • Upon the occurrence of specified corporate events. On or after January 15, 2025 until the close of business on the second scheduled trading day immediately preceding the maturity date, a holder may convert all or any portion of its Notes at any time, regardless of the foregoing. During the year ended January 31, 2021, the conditional conversion feature of the Notes was triggered as the last reported sale price of the Company’s Class A common stock was more than or equal to 130% of the conversion price for at least 20 trading days (whether or not consecutive) in the period of 30 consecutive trading days ending on January 31, 2021 (the last trading day of the fiscal quarter), and therefore the Notes are currently convertible, in whole or in part, at the option of the holders between February 1, 2021 through April 30, 2021. Whether the Notes will be convertible following such period will depend on the continued satisfaction of this condition or another conversion condition in the future. The Company continues to classify the Notes as a long-term liability in its consolidated balance sheet as of January 31, 2021, based on contractual settlement provisions. The conversion rate was initially 32.2630 shares of the Company’s Class A common stock per $1,000 principal amount of Notes (equivalent to an initial conversion price of approximately $31.00 per share of the Company’s Class A common stock). The conversion rate is subject to adjustment in some events but will not be adjusted for any accrued and unpaid interest. In addition, following certain corporate events that occur prior to the maturity date (a “make-whole fundamental change”), the Company will, in certain circumstances, increase the conversion rate for a holder who elects to convert its Notes in connection with such a corporate event. If consummated, the Mergers are expected to constitute a make-whole fundamental change that will result in an increase to the conversion rate for a holder who elects to convert its Notes in connection therewith. Any such increase would be determined by reference to a “make-whole” table included in the indenture governing the Notes. The Company may not redeem the Notes prior to April 20, 2023. The Company may redeem for cash all or any portion of the Notes, at its option, on a redemption date occurring on or after April 20, 2023 and on or before the 21st scheduled trading day immediately before the maturity date, if the last reported sale price of the Company’s Class A common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which the Company provides notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the Notes. If the Company undergoes a fundamental change (as defined in the Indenture), holders may require the Company to repurchase for cash all or any portion of their Notes at a fundamental change repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date. If consummated, the Mergers are expected to constitute a fundamental change. The Indenture contains customary terms and covenants, including that upon certain events of default occurring and continuing, either the Trustee or the holders of not less than 25% in aggregate principal amount of the Notes then outstanding may declare the entire principal amount of all the Notes plus accrued special interest, if any, to be immediately due and payable. The Notes are the Company’s general unsecured obligations and rank senior in right of payment to all of the Company’s indebtedness that is expressly subordinated in right of payment to the Notes; equal in right of payment with all of the Company’s liabilities that are not so subordinated; effectively junior to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities (including trade payables) of the Company’s subsidiaries. In accounting for the issuance of the Notes, the Company separated the Notes into liability and equity components. The carrying amount of the liability component was calculated using a discount rate of 6.85%, which was determined by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was $229.2 million and was determined by deducting the fair value of the liability component from the par value of the Notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount, or the debt discount, is amortized to interest expense at an annual effective interest rate over the contractual terms of the Notes. As of January 31, 2021, the net carrying amount of the liability component of the Notes was as follows (in thousands): Principal $ 862,500 Less: unamortized discount (197,339) Less: unamortized issuance costs (13,763) Net carrying amount $ 651,398 As of January 31, 2021, the net carrying amount of the equity component of the Notes was as follows (in thousands): Proceeds allocated to the conversion options (debt discount) $ 229,249 Less: issuance costs (5,627) Carrying amount of the equity component $ 223,622 The following table sets forth the interest expense recognized related to the Notes for the year ended January 31, 2021 (in thousands): Contractual interest expense $ 3,486 Amortization of debt discount 31,910 Amortization of debt issuance costs 1,781 Total interest expense related to the Notes $ 37,177 Capped Call Transactions In connection with the offering of the Notes, the Company entered into privately negotiated capped call transactions with certain financial institution counterparties (the “Capped Calls”). The Capped Calls each have an initial strike price of approximately $31.00 per share, subject to certain adjustments, which corresponds to the initial conversion price of the Notes. The Capped Calls have initial cap prices of $48.62 per share, subject to certain adjustments. The Capped Calls cover, subject to anti-dilution adjustments, approximately 27.8 million shares of Class A common stock. The Capped Calls are generally intended to reduce or offset the potential dilution to the Class A common stock upon any conversion of the Notes with such reduction or offset, as the case may be, subject to a cap based on the cap price. The Capped Calls expire on the earlier of (i) the last day on which any convertible securities remain outstanding and (ii) April 15, 2025, subject to earlier exercise. The Capped Calls are subject to either adjustment or termination upon the occurrence of specified extraordinary events affecting the Company, including a merger event, a tender offer, and a nationalization, insolvency or delisting involving the Company. In addition, the Capped Calls are subject to certain specified additional disruption events that may give rise to a termination of the Capped Calls, including changes in law, insolvency filings, and hedging disruptions. The Capped Calls are recorded in stockholders’ equity and are not accounted for as derivatives. The net cost of $105.60 million incurred to purchase the capped call transactions was recorded as a reduction to additional paid-in capital in the accompanying consolidated balance sheet. Revolving Credit Facility On May 30, 2019, the Company entered into a $215.0 million revolving credit and guaranty agreement with a syndicate of financial institutions. The revolving credit facility has an accordion option, which, if exercised, would allow the Company to increase the aggregate commitments by up to the greater of $200.0 million and 100% of the consolidated adjusted EBITDA of the Company and its subsidiaries, plus an unlimited amount subject to satisfaction of certain leverage ratio based compliance tests after giving effect to the exercise, in each case subject to obtaining additional lender commitments and satisfying certain conditions. Pursuant to the terms of the revolving credit facility, the Company may issue letters of credit under the revolving credit facility, which reduce the total amount available for borrowing under such facility. The revolving credit facility terminates on May 30, 2024. Interest on borrowings under the revolving credit facility accrues at a variable rate tied to the prime rate or the LIBOR, plus the applicable margin, at the Company’s election. The margin is 0.25% in the case of prime rate loans and 1.25% in the case of LIBOR loans. Interest is payable quarterly in arrears. Pursuant to the terms of the revolving credit facility, the Company is required to pay an annual commitment fee that accrues at a rate of 0.10% per annum on the unused portion of the borrowing commitments under the revolving credit facility. In addition, the Company is required to pay a fee in connection with letters of credit issued and outstanding under the revolving credit facility that accrues at a rate of 1.25% per annum on the amount to be drawn under such letters of credit outstanding. There is an additional fronting fee of 0.125% per annum multiplied by the aggregate face amount of issued and outstanding letters of credit. The revolving credit facility contains customary conditions to borrowing, events of default, and covenants, including covenants that restrict the Company’s and its subsidiaries’ ability to, among other things, incur additional indebtedness, create or incur liens, merge or consolidate with other companies, sell substantially all of the Company’s assets, liquidate or dissolve, make distributions to the Company’s equity holders or its subsidiaries’ equity interests, pay dividends, make redemptions and repurchases of stock, or engage in transactions with affiliates. In addition, the revolving credit facility contains financial covenants, including a minimum liquidity balance and a minimum revenue amount. The Company has been in compliance with all covenants under the revolving credit facility since it entered into the revolving credit and guaranty agreement on May 30, 2019. As of January 31, 2021, the Company had no amounts or letters of credit issued and outstanding under the revolving credit facility. The Company’s total available borrowing capacity under the revolving credit facility was $215.0 million as of January 31, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Letters of Credit As of January 31, 2021, the Company had $38.5 million in standby letters of credit outstanding related to facility lease obligations in San Francisco, California and Denver, Colorado, which is included in restricted cash in the accompanying consolidated balance sheets. Hosting Commitments On April 30, 2020, the Company executed an amendment to its existing agreement with Amazon Web Services (“AWS”). The amended agreement was effective as of May 1, 2020 and continues through April 30, 2025. Pursuant to the amended agreement, the Company has minimum annual commitments of $75.0 million which will increase by $5.0 million annually, for a total minimum commitment of $425.0 million. As of January 31, 2021, the Company had a remaining minimum payment obligation of $353.7 million to AWS through April 30, 2025. Legal Matters The Company records a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Company also discloses material contingencies when it believes a loss is not probable but reasonably possible. Accounting for contingencies requires the Company to use judgment related to both the likelihood of a loss and the estimate of the amount or range of loss. The outcomes of the Company’s legal proceedings are inherently unpredictable and subject to significant uncertainties. For some matters for which a material loss is reasonably possible, an estimate of the amount of loss or range of losses is not possible, nor is the Company able to estimate the loss or range of losses that could potentially result from the application of non-monetary remedies. Many legal and tax contingencies can take years to be resolved. Until the final resolution of legal matters, all amounts of loss or range of losses are estimates only. The final losses the Company incurs may differ materially from these estimates. Beginning in September 2019, seven purported class action lawsuits were filed against the Company, its directors, certain of its officers, and certain investment funds associated with certain of its directors, each alleging violations of securities laws in connection with the Company’s registration statement on Form S-1 (the “Registration Statement”) filed with the Securities and Exchange Commission (the “SEC”). All but one of these actions were filed in the Superior Court of California for the County of San Mateo, though one plaintiff originally filed in the County of San Francisco (the “San Francisco Action”) before refiling in the County of San Mateo. The remaining action was filed in the U.S. District Court for the Northern District of California (the “Federal Action”). In the Federal Action, captioned Dennee v. Slack Technologies, Inc., Case No. 3:19-CV-05857-SI, the Company and the other defendants filed a motion to dismiss the complaint in January 2020. In April 2020, the court granted in part and denied in part the motion to dismiss. In May 2020, the Company and the other defendants filed a motion to certify the court’s order for interlocutory appeal, which the court granted. The Company and the other defendants filed a petition for permission to appeal the district court’s order to the Ninth Circuit Court of Appeals, which was granted in July 2020. The Company and the other defendants filed their opening brief with the Ninth Circuit Court of Appeals in October 2020. The plaintiff filed its opposition brief in December 2020. The Company and the other defendants filed their reply brief in February 2021. Oral argument has been set for May 2021. The state court actions were consolidated in November 2019, and the consolidated action is captioned In re Slack Technologies, Inc. Shareholder Litigation, Lead Case No. 19CIV05370 (the “State Court Action”). An additional state court action was filed in San Mateo County in June 2020 but was consolidated with the State Court Action in July 2020. The Company and the other defendants filed demurrers to the complaint in the State Court Action in February 2020. In August 2020, the court sustained in part and overruled in part the demurrers, and granted plaintiffs leave to file an amended complaint, which they did in October 2020. The Company and the other defendants answered the complaint in November 2020. The plaintiff in the San Francisco Action has sought dismissal of that action after joining the State Court Action. That dismissal remains pending. The Federal Action and the State Court Action seek unspecified monetary damages and other relief on behalf of investors who purchased the Company’s Class A common stock issued pursuant and/or traceable to the Registration Statement. In April 2020, three purported stockholder derivative lawsuits were filed against certain of the Company’s officers and certain of the Company’s current and former directors in the U.S. District Courts for the District of Delaware and the Northern District of California. The case filed in the Northern District of California was dismissed and re-filed in the U.S. District Court for the District of Delaware. The derivative cases were consolidated in June 2020, and the operative complaint was designated in August 2020. The complaint alleges breaches of fiduciary duty in connection with the Company’s Registration Statement, and seeks the award of unspecified damages to the Company, and certain reforms to the Company’s governance policies. The Company moved to dismiss the case in September 2020. At approximately the same time, the plaintiff in the lawsuit brought pursuant to Delaware General Corporation Law Section 220 (discussed below) sought to intervene and stay the case. On that basis, the plaintiffs in the purported derivative lawsuit elected not to file an opposition to the motion to dismiss. In December 2020, the parties stipulated to stay the case in light of the proposed Mergers, which the court granted. The court also denied all pending motions in the case without prejudice, noting that the parties may renew the motions upon a lift of the stay. In June 2020, a lawsuit was filed by a stockholder against the Company in the Delaware Court of Chancery pursuant to Delaware General Corporation Law Section 220 seeking an order permitting inspection and copying of certain of the Company’s books and records. The Company answered the complaint in October 2020. The Company believes the above described lawsuits are without merit and intends to vigorously defend them. Based on the preliminary nature of the proceedings in these cases, the outcomes of these matters remain uncertain. Between December 28, 2020 and February 11, 2021, (i) seven lawsuits were filed by purported stockholders of the Company in the United States District Court for the Northern District of California and (ii) six lawsuits were filed by purported Company stockholders in the United States District Court for the Southern District of New York. The complaints named as defendants the Company, the members of the Company’s board of directors, and, with respect to certain complaints, Salesforce, Merger Sub I and Merger Sub II. The complaints alleged, among other things, that the defendants caused a materially incomplete and misleading proxy statement relating to the proposed Mergers to be filed with the SEC in violation of Sections 14(a) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 14a-9 promulgated thereunder. Certain complaints also alleged that the Company’s board of directors breached their fiduciary duties in connection with the proposed mergers and that the Company, Salesforce, Merger Sub I, and Merger Sub II aided and abetted the breaches of fiduciary duty by the Company’s directors. All 13 lawsuits have been voluntarily dismissed. Certain plaintiffs have expressed an intention to seek a fee from the Company in relation to these suits on the grounds that they provided a service to the Company. The Company has not agreed to pay any such fee and does not believe there is any merit in the contention that a service was provided and intends to vigorously contest any such filing. In addition, the Company is involved from time to time in various claims and legal actions arising in the ordinary course of business. While it is not feasible to predict or determine the ultimate outcomes of these matters, the Company believes that none of these ordinary course legal proceedings will have a material adverse effect on its consolidated financial statements. Indemnification Agreements In the ordinary course of business, the Company provides indemnifications of varying scope and terms to customers, business partners, vendors, lessors, investors, directors, officers, employees, and other parties with respect to certain matters. Indemnification may include losses from the Company’s breach of such agreements, intellectual property infringement claims made by third parties, and other liabilities relating to or arising from Slack, or the Company’s acts or omissions. These indemnifications may survive termination of the underlying agreement and the maximum potential amount of future indemnification payments may not be subject to a cap. It is not possible to determine the maximum potential loss under these indemnifications due to the Company’s limited history of prior indemnification claims and the unique facts and circumstances involved in each particular indemnification. The Company has not incurred material costs to defend lawsuits or settle claims related to these indemnifications as of January 31, 2021. As of January 31, 2021 and 2020, no material amounts were accrued. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jan. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Preferred Stock The Company’s board of directors has the authority, without further action by the Company’s stockholders, to issue up to 100,000,000 shares of undesignated preferred stock with rights and preferences, including voting rights, designated from time to time by the board of directors. Common Stock On June 7, 2019, the Company amended and restated its certificate of incorporation to authorize 5.0 billion shares of Class A common stock and 700.0 million shares of Class B common stock. Holders of Class A common stock and Class B common stock are entitled to dividends on a pro rata basis, when, as, and if declared by the Company’s board of directors, subject to preferences that may apply to any shares of preferred stock outstanding at the time. Holders of Class A common stock are entitled to one vote per share, and holders of Class B common stock are entitled to ten votes per share. Upon a liquidation, dissolution or winding-up of the Company, any distribution of proceeds to common stockholders will be made on a pro rata basis to the holders of Class A common stock, Class B common stock and any participating preferred stock outstanding at that time, subject to prior satisfaction of all outstanding debt and liabilities and the preferential rights of and the payment of liquidation preferences, if any, on any outstanding shares of preferred stock. Shares of Class B common stock will automatically convert into shares of Class A common stock upon a sale or transfer (other than with respect to certain estate planning and other transfers). All shares of Class B common stock outstanding in June 2029 will automatically convert into shares of Class A common stock. Class A common stock and Class B common stock is not redeemable at the option of the holder. The Company had reserved shares of common stock for future issuance as follows (in thousands): As of Stock options outstanding 6,228 Restricted stock units outstanding 34,700 Shares available for future grants 74,349 Shares available for ESPP 12,771 Total 128,048 Equity Incentive Plans The Company maintains two equity incentive plans: the 2009 Plan and the 2019 Plan. Upon the completion of the Direct Listing, the Company adopted the 2019 Plan and terminated the 2009 Plan with all shares that remained available for future issuance at the time canceled. The 2019 Plan is a successor to and continuation of the 2009 Plan that provides for the grant of stock options, stock appreciation rights, restricted stock awards, restricted stock units, and other forms of awards. The Company initially reserved 60.2 million shares of Class A common stock for the issuance of awards under the 2019 Plan. The 2019 Plan provides that the number of shares reserved and available for issuance under the 2019 Plan will automatically increase each February 1, beginning on February 1, 2020, by 5% of the number of shares of the Company’s Class A and Class B common stock outstanding on the immediately preceding January 31, or such lesser number of shares as determined by the Company’s board of directors or compensation committee. On February 1, 2020, the number of shares of the Company’s Class A common stock reserved and available for issuance under the 2019 Plan was increased by 27.8 million shares. In January 2021, the Company’s compensation committee determined not to increase the number of shares available for issuance under the 2019 Plan on February 1, 2021. Stock Options A summary of stock option activity under the 2009 Plan and 2019 Plan and related information is as follows (in thousands, except years and per share data): Number of stock options outstanding Weighted-average exercise price per share Weighted-average remaining contractual term (In years) Aggregate intrinsic value Outstanding at January 31, 2020 8,425 $ 4.68 6.27 $ 135,224 Granted 1,678 24.31 Exercised (3,602) 3.65 Canceled (273) 10.52 Outstanding at January 31, 2021 6,228 $ 10.31 6.89 $ 198,434 Stock options vested and exercisable at January 31, 2021 2,765 $ 3.54 4.88 $ 106,787 Stock options vested and expected to vest at January 31, 2021 6,228 $ 10.31 6.89 $ 198,434 The total grant-date fair value of stock options granted in the years ended January 31, 2021, 2020, and 2019 was $17.9 million, $21.4 million, and $0, respectively. The total intrinsic value of stock options exercised in the years ended January 31, 2021, 2020, and 2019, was $101.0 million, $393.3 million, and $30.0 million, respectively. As of January 31, 2021, there was $26.0 million of total unrecognized stock-based compensation related to outstanding stock options, which will be recognized on a straight-line basis over a weighted average period of 3.7 years. RSUs and RSAs The fair value of RSUs and RSAs are determined using the fair value of the Company’s common stock on the date of grant. A summary of RSUs and RSAs activity under the 2009 Plan and 2019 Plan is as follows (in thousands, except per share data): Restricted stock units Restricted stock awards Number of shares Weighted-average grant date fair value Number of shares Weighted-average grant date fair value Unvested at January 31, 2020 42,002 $ 12.48 1,579 $ 8.91 Granted 15,352 27.56 — — Released (18,517) 12.01 (480) 8.96 Canceled (4,137) 14.81 — — Unvested at January 31, 2021 34,700 $ 19.13 1,099 $ 8.89 The weighted-average estimated fair value of RSUs granted in the year ended January 31, 2020 and 2019 was $18.93 and $7.02 per share, respectively. The weighted-average estimated fair value of RSAs granted in the year ended January 31, 2020 and 2019 was $13.60 and $7.86 per share, respectively. As of January 31, 2021, the Company had $472.6 million of unrecognized stock-based compensation related to RSUs, which will be recognized over the weighted average remaining requisite service period of 1.9 years. As of January 31, 2021, the Company had $9.2 million of unrecognized stock-based compensation related to RSAs, which will be recognized over the weighted average remaining requisite service period of 2.9 years. 2019 Employee Stock Purchase Plan The Company’s ESPP became effective on June 6, 2019. A total of 9.0 million shares of the Company’s Class A common stock were initially reserved for issuance under the ESPP. The ESPP provides that the number of shares reserved and available for issuance will automatically increase each February 1, beginning on February 1, 2020, by the lesser of 6.0 million shares of the Class A common stock, 1% of the number of shares of the Company’s Class A and Class B common stock issued and outstanding on the immediately preceding January 31, or such lesser number of shares as determined by the Company’s compensation committee. On February 1, 2020, the number of shares of the Company’s Class A common stock reserved and available for issuance under the ESPP was increased by 5.6 million shares. In January 2021, the Company’s compensation committee determined not to increase the number of shares available for issuance under the ESPP on February 1, 2021. The ESPP allows eligible employees to purchase shares of the Company’s Class A common stock at a discount of 15% through payroll deductions of their eligible compensation, subject to any plan limitations. Except for the first offering period from the date of the Direct Listing, the ESPP provides for separate six-month offering periods beginning each October 10 and April 10. On each purchase date, eligible employees will purchase the Company’s Class A common stock at a price per share equal to 85% of the lesser of (i) the fair market value of the Company’s Class A common stock on the offering date or (ii) the fair market value of the Company’s Class A common stock on the purchase date. For the year ended January 31, 2021 and 2020, 1.4 million and 0.3 million shares of Class A common stock were issued under the ESPP, respectively. The Company selected the Black-Scholes option-pricing model as the method for determining the estimated fair value for the Company’s ESPP. As of January 31, 2021, total unrecognized compensation cost related to the ESPP was $2.2 million which will be amortized over a weighted average period of 0.2 years. Stock Transfers During the year ended January 31, 2019, certain of the Company’s existing investors, or investors to whom the Company waived its right of first refusal and transfer restrictions with respect to proposed transfers of outstanding common stock, acquired outstanding common stock from current or former employees of the Company for a purchase price greater than the fair value at the time of the transactions. In connection with these stock transfers, the Company waived its right of first refusal and other transfer restrictions applicable to such shares. As a result, the Company recorded $14.8 million of stock-based compensation for the difference between the price paid and the fair value on the date of the transaction for the year ended January 31, 2019. Stock-Based Compensation A summary of the stock-based compensation excluding stock transfers recorded in the accompanying consolidated statements of operations is as follows (in thousands): Year ended January 31, 2021 2020 2019 Cost of revenue $ 10,186 $ 16,013 $ 199 Research and development 115,047 226,507 3,720 Sales and marketing 59,267 98,797 970 General and administrative 42,863 85,207 3,422 Total $ 227,363 $ 426,524 $ 8,311 The fair value of stock options granted to employees is estimated on the date of grant using the Black-Scholes option valuation model. This stock-based compensation expense valuation model requires the Company to make assumptions and judgments regarding the variables used in the calculation. These variables include the expected term (weighted average period of time that the stock options granted are expected to be outstanding), the expected volatility of the Company’s common stock, expected risk-free interest rate and expected dividends. To the extent actual results differ from the estimates, the difference is recorded as a cumulative adjustment in the period estimates are revised. The Company accounts for forfeitures as they occur. The Company uses the simplified calculation of expected term, as the Company does not have sufficient historical data to use any other method to estimate expected term. Expected volatility is based on an average of the historical volatilities of the common stock of several entities with characteristics similar to those of the Company. The expected risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. The expected dividend yield is 0% as the Company has not paid, and does not expect to pay, cash dividends. The following assumptions used in the valuation of stock options and ESPP: Stock Option ESPP Year ended January 31, Year ended January 31, 2021 2020 2021 2020 Expected Term 6.1 years 6.1 - 6.5 years 0.5 years 0.3 - 0.5 years Expected volatility 46% 43% - 44% 49% - 57% 40% - 42% Risk-free interest rate 0.51% 2.33% - 2.52% 0.12% - 0.24% 1.68% - 2.08% Dividend yield —% —% —% —% Fair value of common stock on grant date $24.31 $11.67 - $19.36 $24.70 - $31.79 $23.82 - $38.62 There were no stock options granted to employees during the year ended January 31, 2019. |
Interest Income and_Other Incom
Interest Income and Other Income, Net | 12 Months Ended |
Jan. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Interest Income and Other Income, Net | Interest Income and Other Income, Net Interest income and other income, net consist of the following (in thousands): Year ended January 31, 2021 2020 2019 Interest income $ 6,698 $ 17,048 $ 13,834 Unrealized gains (losses) on foreign exchange 2,140 (786) (869) Transaction losses on foreign exchange (730) (1,526) (99) Change in fair value of strategic investments 20,278 5,599 3,701 Other non-operating income, net — 1,033 13 Interest income and other income, net $ 28,386 $ 21,368 $ 16,580 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Loss before income taxes consisted of the following (in thousands): Year ended January 31, 2021 2020 2019 United States $ (169,376) $ (294,259) $ (85,175) Foreign (123,427) (273,509) (52,887) Total $ (292,803) $ (567,768) $ (138,062) The components of the Company’s provision for (benefit from) income tax are as follows (in thousands): Year ended January 31, 2021 2020 2019 Current: Federal $ — $ — $ — State 494 303 355 Foreign 2,443 1,919 279 Total current 2,937 2,222 634 Deferred: Federal (754) (120) (200) State (182) (23) (120) Foreign (2,316) (1,490) 526 Total deferred (3,252) (1,633) 206 Provision for (benefit from) income taxes $ (315) $ 589 $ 840 A reconciliation of the U.S. federal statutory tax rate to the Company’s provision for income tax is as follows: Year ended January 31, 2021 2020 2019 Tax at statutory federal rate 21.00 % 21.00 % 21.00 % State tax, net of federal benefit 8.14 12.68 2.12 Stock-based compensation 23.51 45.16 (2.95) Credits 9.48 17.37 6.01 Foreign rate differential (4.18) (7.06) 9.52 Other (1.50) (1.48) (3.67) Change in valuation allowance (56.34) (87.77) (32.64) Effective tax rate 0.11 % (0.10) % (0.61) % Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company’s deferred income tax assets and liabilities consisted of the following (in thousands): Year ended January 31, 2021 2020 Deferred tax assets (liabilities): Accrued liabilities $ 17,041 $ 10,646 Accounts receivable 92 93 Operating lease liabilities 71,290 51,085 Operating lease right-of-use assets (52,993) (42,919) Net operating losses 553,188 415,236 Tax credits 148,576 120,743 Goodwill and intangible assets 13,205 13,176 Property and equipment (10,036) 2,566 Stock-based compensation 39,895 43,182 Other (388) (1,309) Total gross deferred tax assets 779,870 612,499 Valuation allowance (775,987) (611,027) Total deferred tax assets (liabilities), net $ 3,883 $ 1,472 The Company has assessed, based on available evidence, both positive and negative, it is more likely than not that the deferred tax assets will not be utilized, such that a valuation allowance has been recorded, except for certain foreign subsidiaries which generate income. The valuation allowance increased $165.0 million, $498.3 million, and $46.1 million in the years ended January 31, 2021, 2020, and 2019, respectively. As of January 31, 2021, the Company had U.S. federal and state net operating loss carryforwards of $2.0 billion and $1.5 billion, respectively, available to offset future taxable income. If not utilized, these carryforward losses will expire, in various amounts, for federal and state tax purposes, beginning in 2029 and 2024, respectively. The Company had no Federal and California capital loss carryforwards as of January 31, 2021. In addition, the Company had $110.4 million and $81.5 million of federal and state research and development tax credits, respectively, available to offset future taxes as of January 31, 2021. If not utilized, the federal credits will begin to expire in 2029. California state research and development tax credits may be carried forward indefinitely. Utilization of the net operating loss and tax credit carryforwards may be subject to a substantial annual limitation due to the “ownership change” limitations provided by Section 382 and 383 of the Code, and other similar state provisions. Any annual limitation may result in the expiration of net operating loss and tax credit carryforwards before utilization. The Company is required to inventory, evaluate and measure all uncertain tax positions taken or to be taken on tax returns, and to record liabilities for the amount of such positions that may not be sustained, or may only partially be sustained, upon examination by the relevant taxing authorities. A reconciliation of the beginning and ending amount of total unrecognized tax benefits, exclusive of interest and penalties described below, is as follows (in thousands): Year ended January 31, 2021 2020 2019 Balance at beginning of year $ 37,495 $ 20,484 $ 18,545 Increase related to prior year tax provisions 1,067 1 — Decrease related to prior year tax provisions (1,445) (2,495) (2,076) Increase related to current year tax provisions 6,134 19,526 4,022 Lapse of statute of limitations — (21) (7) Balance at end of year $ 43,251 $ 37,495 $ 20,484 As of January 31, 2021 and 2020, the unrecognized tax benefits of $43.3 million and $37.5 million, respectively, if recognized, would not affect the effective tax rate as it would be offset by the reversal of related deferred tax assets, which are subject to a full valuation allowance. Unrecognized tax benefits that would affect the effective tax rate, if recognized, as of January 31, 2019 were not material. The Company does not expect its gross unrecognized tax benefits to change significantly within the next 12 months. The Company recognizes interest and penalties related to uncertain tax positions in provision for income taxes. Accrued interest and penalties were not material as of January 31, 2021 and 2020. Under the provisions of the Tax Act, (the “Tax Act”), all foreign earnings are subject to U.S. taxation currently. As a result of the Tax Act, the Company intends to repatriate foreign earnings that have been taxed in the United States to the extent that the foreign earnings are not restricted by local laws and accounting rules. The Company files tax returns in the U.S. (federal and various states) and other foreign jurisdictions. Due to the Company’s U.S. net operating loss carryforwards, its income tax returns generally remain subject to examination by federal and most state tax authorities. In March 2020, the President of the United States signed into law the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The CARES Act, among other things, includes certain income tax provisions for individuals and corporations; however, since the Company has recorded a full valuation allowance against its deferred tax assets, these changes to U.S. tax law do not have a material impact on the Company’s provision for income taxes in its consolidated financial statements. In addition, although many countries in which the Company operates have also issued some form of COVID-19 related income tax guidance, this guidance does not have material impact on provision for income taxes in the accompanying consolidated financial statements. In July 2015, the U.S. Tax Court issued an opinion favorable to Altera Corporation (“Altera”) with respect to the exclusion of stock-based compensation from its intercompany cost-sharing arrangement. In June 2019, the U.S. Court of Appeals reversed the 2015 decision of the U.S. Tax Court. In July 2019, Altera petitioned the Ninth Circuit for a rehearing of a larger panel of eleven Ninth Circuit judges. Altera’s petition for rehearing was denied in November 2019. In February 2020, Altera filed a petition for writ of certiorari to the U.S. Supreme Court. In June 2020, the U.S. Supreme Court declined the writ of certiorari. The Company has considered the impact on the accompanying consolidated financial statements which is not material after considering the valuation allowance. |
Net Loss per Share Attributable
Net Loss per Share Attributable to Slack Common Stockholders | 12 Months Ended |
Jan. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss per Share Attributable to Slack Common Stockholders | Net Loss per Share Attributable to Slack Common StockholdersBasic net loss per share attributable to Slack common stockholders is computed by dividing the net loss attributable to Slack common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted loss per share is the same as basic loss per share for all years presented because the effects of potentially dilutive items were antidilutive given the Company’s net loss in each period presented. The following table presents the calculation of basic and diluted net loss per share attributable to Slack common stockholders (in thousands, except per share data): Year ended January 31, 2021 2020 2019 Numerator: Net loss attributable to Slack $ (300,422) $ (571,058) $ (140,683) Denominator: Weighted average common shares outstanding 567,152 399,461 121,732 Net loss per share attributable to Slack common stockholders, basic and diluted $ (0.53) $ (1.43) $ (1.16) Since the Company was in a loss position for all periods presented, basic net loss per share attributable to Slack common stockholders is the same as diluted net loss per share attributable to Slack common stockholders as the inclusion of all potential common shares outstanding would have been antidilutive. Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows (in thousands) As of January 31, 2021 2020 2018 Shares related to convertible senior notes 27,827 — — Convertible preferred stock — — 373,372 Stock options 6,228 8,425 18,406 Unvested early exercised stock options 64 — 115 Restricted stock units 34,700 42,002 63,114 Restricted stock awards 1,099 1,579 2,289 Restricted stock 648 — — Employee stock purchase plan 628 814 — Total antidilutive securities 71,194 52,820 457,296 The Company had 373.4 million shares of preferred stock outstanding that were converted to shares of Class B common stock in connection with the Direct Listing. These securities were potentially dilutive, as outstanding shares of preferred stock, through the date of conversion of June 7, 2019. The Notes will not have an impact on the Company’s diluted earnings per share until the average market price of the Company’s Class A common stock exceeds the initial conversion price of approximately $31.00 per share, as the Company intends and has the ability to settle the principal amount of the Notes in cash upon conversion. The Company is required under the treasury stock method to compute the potentially dilutive shares of Class A common stock related to the Notes for periods the Company reports net income. However, upon conversion, there will be no economic dilution from the Notes until the average market price of the Company’s Class A common stock exceeds the cap price of $48.62 per share, as exercise of the Capped Calls offsets any dilution from the Notes from the conversion price up to the cap price. Capped Calls are excluded from the calculation of diluted earnings per share, as they would be antidilutive under the treasury stock method. |
Geographic Information
Geographic Information | 12 Months Ended |
Jan. 31, 2021 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information See Note 2. Revenues for the Company’s revenue by geographic areas, as determined based on the billing address of its customers. The following table sets forth the Company’s long-lived assets by geographic area, which consist of property and equipment, net and operating lease right-of-use assets (in thousands): As of January 31, 2021 2020 United States $ 268,851 $ 256,695 International 38,252 43,475 Total $ 307,103 $ 300,170 |
Defined Contribution Plan
Defined Contribution Plan | 12 Months Ended |
Jan. 31, 2021 | |
Retirement Benefits [Abstract] | |
Defined Contribution Plan | Defined Contribution PlanThe Company provides a tax-qualified employee savings and retirement plan, commonly known as a 401(k) plan, that allows participating employees in the United States to contribute up to 100% of their pre-tax annual compensation subject to Internal Revenue Service limits. The Company matches employee contributions at a rate of 50%, up to a maximum annual matched contribution of $4,000 per employee. Employee contributions are always fully vested while the matching contributions fully vest following one year of employee’s credited service with the Company. The Company’s matching contributions to its 401(k) plan totaled $7.3 million, $5.8 million, and $3.7 million for the years ended January 31, 2021, 2020, and 2019, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jan. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Convertible Senior Notes In February 2021, the Company and U.S. Bank National Association, as trustee, entered into a first supplemental indenture (the “Supplemental Indenture”) to the Indenture. The Supplemental Indenture amends the Indenture to remove the requirement that the successor in any merger of the Company with or into another person be a corporation and makes certain other conforming changes. The Supplemental Indenture became effective upon execution thereof, but the amendments to the Indenture will not become operative until (i) the closing of the First Merger and (ii) payment of the applicable consent fee, which is expected to occur on the earlier of May 1, 2021 and the closing of the First Merger. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2021 | |
Accounting Policies [Abstract] | |
Fiscal Year | The Company’s fiscal year ends on January 31. References to fiscal year 2021, for example, refer to the fiscal year ended January 31, 2021. |
Basis of Presentation | The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), and include the accounts of the Company and its wholly owned and majority-owned subsidiaries. |
Consolidation | All intercompany balances and transactions have been eliminated in consolidation. The consolidated financial statements include 100% of the accounts of wholly owned and majority-owned subsidiaries and the ownership interest of minority investors is recorded as noncontrolling interest. |
Use of Estimates | The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates are based on information available as of the date of the consolidated financial statements. On a regular basis, management evaluates these estimates and assumptions; however, actual results could materially differ from these estimates due to risks and uncertainties, including uncertainty in the current economic environment related to the outbreak of the novel coronavirus pandemic (“COVID-19”). The Company’s most significant estimates and judgments involve revenue recognition, stock-based compensation including the estimation of fair value of common stock, valuation of strategic investments, valuation of acquired goodwill and intangibles from acquisitions, period of benefit for deferred contract acquisition costs, fair value of the liability and equity components of convertible senior notes, and uncertain tax positions. |
Revenue Recognition and Deferred Revenue | The Company derives substantially all revenue from monthly and annual subscription fees earned from customers accessing Slack. The Company’s policy is to exclude sales and other indirect taxes when measuring the transaction price of its subscription agreements. The Company accounts for revenue contracts with customers through the following steps: • Identification of the contract, or contracts, with the customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of the revenue when, or as, the Company satisfies a performance obligation. Subscription revenue is recognized on a straight-line basis over the contractual term of the arrangement beginning on the date that the service is made available to the customer. The Company’s subscription service contracts are generally one month to thirty-six months in duration and are generally non-cancellable. Customers are billed either annually or monthly generally in advance of services. The contracts do not provide customers with the |
Cost of Revenue | Cost of revenue consists primarily of expenses related to hosting Slack and providing ongoing customer experience support for paid customers, including employee compensation (including stock-based compensation) and other employee-related expenses for customer experience and technical operations staff, payments to outside service providers, third-party hosting costs, payment processing fees and amortization of internally-developed and purchased technology. |
Stock-Based Compensation | The Company measures compensation for all stock-based payment awards, including stock options, restricted stock units (“RSUs”), restricted stock awards (“RSAs”), restricted stock, and purchase rights issued under the 2019 Employee Stock Purchase Plan (“ESPP”) granted to employees, directors, and nonemployees, based on the estimated fair value of the awards on the date of grant. The fair value of each stock option and purchase rights issued under the ESPP granted is estimated using the Black-Scholes option pricing model. Stock-based compensation is recognized on a straight-line basis over the requisite service period, except for the RSUs granted under the 2009 Stock Plan (the “2009 Plan”). Under the 2009 Plan, the Company granted RSUs to its employees and directors with both a service-based vesting condition and a performance-based vesting condition. The service-based vesting period for these awards was typically four years with a cliff vesting period of one year and continued vesting quarterly thereafter. The fair value of RSUs was estimated based on the fair market value of the Company’s common stock at the date of grant. On June 20, 2019, the performance vesting condition was satisfied upon the completion of the Direct Listing and as a result, the Company recorded cumulative stock-based compensation of $245.1 million related to all then-outstanding RSUs granted under the 2009 Plan. The Company recognizes stock compensation associated with the RSUs granted under the 2009 Plan using the accelerated attribution method over the requisite service period. The Company also granted stock options and RSAs to its employees and directors under the 2009 Plan with a service-based vesting condition. The service-based vesting period for these awards is typically four years with a cliff vesting period of one year and continued vesting monthly thereafter. The fair value of each stock option is estimated using the Black-Scholes option pricing model. The fair value of RSAs is estimated based on the fair market value of the Company’s common stock at the date of grant. Under the 2019 Stock Option and Incentive Plan (the “2019 Plan”), the Company grants RSUs and stock options to its employees and directors with a service-based vesting condition. The service-based vesting period for these awards is typically four years with a cliff vesting period of one year and continued vesting quarterly thereafter. |
Research and Development Costs | Research and development costs are expensed as incurred and consist primarily of personnel costs and allocated overhead. |
Advertising Costs | Advertising costs are expensed as incurred and were $45.7 million, $38.1 million, and $61.7 million for the years ended January 31, 2021, 2020, and 2019, respectively. Advertising costs are included in sales and marketing expense in the accompanying consolidated statements of operations. |
Income Taxes | The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. A valuation allowance is established, when necessary, to reduce deferred tax assets to the amount that is more likely than not to be realized. The Company accounts for uncertain tax positions based on an evaluation as to whether it is more likely than not that a tax position will be sustained on audit, including resolution of any related appeals or litigation processes. This evaluation is based on all available evidence and assumes that the appropriate tax authorities have full knowledge of all relevant information concerning the tax position. The tax benefit recognized is based on the largest amount that is greater than 50% likely of being realized upon ultimate settlement. The Company includes interest expense and penalties related to its uncertain tax positions in interest expense and other expense, respectively. |
Financial Information about Segments and Geographical Areas | The Company has one business activity and there are no segment managers who are held accountable for operations, results of operations, or plans for levels or components below the consolidated unit level. The Company’s chief operating decision maker is its Chief Executive Officer, who reviews the financial information presented on a consolidated basis for purposes of allocating resources and evaluating the Company’s financial performance. Accordingly, the Company has determined that it operates in a single operating and reporting segment. |
Foreign Currency Transaction | The functional currency of the Company’s foreign subsidiaries is the U.S. dollar. Accordingly, each foreign subsidiary remeasures monetary assets and liabilities at period-end exchange rates, while nonmonetary items are remeasured at historical rates. Revenue and expense accounts are remeasured at the average exchange rate in effect during the year. Remeasurement adjustments are recognized in the accompanying consolidated statements of operations as transaction gains or losses in the year of occurrence as other income (expense). |
Cash and Cash Equivalents and Restricted Cash | The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Cash equivalents consist of funds deposited into money market funds, and commercial paper. Restricted cash consists of cash deposited with financial institutions as collateral for the Company’s obligations under its facility leases. |
Marketable Securities | The Company determines the appropriate classification of its investments in marketable securities at the time of purchase and reevaluates such designation at each balance sheet date. The Company has classified and accounted for its marketable securities as available-for-sale. All of the Company’s available-for-sale investments consist of debt securities, adjusted for amortization of premiums and discounts to maturity and such amortization is included in interest income and other income, net on the accompanying consolidated statements of operations. After consideration of the Company’s capital preservation objectives, as well as its liquidity requirements, the Company may sell securities prior to their stated maturities. As the Company views these securities as available to support current operations, it has classified all available-for-sale securities as short-term. The Company carries its available-for-sale securities at fair value and reports the unrealized gains and losses as a component of stockholders’ equity, except for unrealized losses determined to be other than temporary. The Company evaluates its investments periodically for possible other-than-temporary impairment. A decline in fair value below the amortized costs of debt securities is considered an other-than-temporary impairment if the Company has the intent to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of the entire amortized cost basis. In those instances, an impairment charge equal to the difference between the fair value and the amortized cost basis is recognized in earnings. Regardless of the Company’s intent or requirement to sell a debt security, impairment is considered other than temporary if the Company does not expect to recover the entire amortized cost basis. |
Strategic Investments | In December 2015, the Company committed $13.0 million to a newly formed entity, Slack Fund L.L.C. (“Slack Fund”), in exchange for a 52% voting interest. Slack Fund is in the business of purchasing, selling, investing and trading in minority equity and convertible debt securities of privately-held companies that develop applications that have potential for substantial contribution to Slack and its ecosystem. Slack Fund has a duration of ten years and its duration may be extended for three In March 2021, the Company entered into a transfer agreement by and among Slack (as manager and a member of Slack Fund), Slack Fund, and each of the members of Slack Fund (the “Transfer Agreement”). Pursuant to the |
Concentration of Credit Risk | Financial instruments that potentially subject the Company to a concentration of credit risk primarily consist of cash and cash equivalents, restricted cash, marketable securities, and accounts receivable. For cash, cash equivalents, restricted cash, and marketable securities, the Company is exposed to credit risk in the event of default by the financial institutions to the extent of the amounts recorded on the accompanying consolidated balance sheets that are in excess of federal insurance limits. For accounts receivable, the Company is exposed to credit risk in the event of nonpayment by customers to the extent of the amounts recorded on the accompanying consolidated balance sheets. The Company sells its services to a wide variety of customers. If the financial condition or results of operations of any significant customers deteriorates substantially, operating results could be adversely affected. To reduce credit risk, management performs credit evaluations of the financial condition of significant customers. The Company does not require collateral from its credit customers and maintains reserves for estimated credit losses on customer accounts when considered necessary. Actual credit losses may differ from the Company’s estimates. |
Fair Value of Financial Instruments | The Company records its financial assets and liabilities at fair value. The carrying amounts of the Company’s financial instruments, which include cash, restricted cash, accounts receivable, and accounts payable, approximate their fair values due to their short-term nature. The accounting guidance for fair value provides a framework for measuring fair value, clarifies the definition of fair value, and expands disclosures regarding fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows: • Level 1 inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. • Level 2 inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. • Level 3 inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. |
Accounts Receivable, Net | Trade accounts receivable are recorded at invoiced amounts and do not bear interest. The Company generally does not require collateral and performs ongoing credit evaluations of its customers and provides for expected losses. The expectation of collectability is based on the Company’s review of credit profiles of customers, contractual terms and conditions, current economic trends, and historical payment experience. If events or changes in circumstances indicate that specific receivable balances may be impaired, further consideration is given to the collectability of those balances and an allowance is recorded accordingly. Past-due receivable balances are written off when internal collection efforts have been unsuccessful in collecting the amount due. The allowance for doubtful accounts reflects the Company’s best estimate of probable losses inherent in the receivables portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other currently available evidence. The Company has not experienced significant credit losses from |
Deferred Contract Acquisition Costs, Net | Sales commissions earned by the Company’s sales force are considered to be incremental and recoverable costs of obtaining a contract with a customer. As a result, these amounts have been capitalized as deferred contract acquisition costs within prepaid expenses and other current assets and other assets on the accompanying consolidated balance sheets. Deferred contract acquisition costs are typically amortized over a period of benefit of four years. The period of benefit is estimated by considering factors such as historical customer attrition rates, the useful life of the Company’s technology, and the impact of competition in its industry as well as other factors. Amortized costs are included in sales and marketing expense in the accompanying consolidated statements of operations. |
Property and Equipment, Net | Property and equipment, net is stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful life of the related asset, which is typically two years for computer equipment and software, five years for furniture and fixtures, and in the case of leasehold improvements, the remaining term of the lease, unless the useful life of the asset is shorter. Maintenance and repairs are charged to expense as incurred. |
Internal-Use Software Development Costs | The Company capitalizes qualifying internal-use software development costs and implementation costs incurred in cloud computing arrangements that are incurred during the application development stage. Capitalization of costs begins when two criteria are met: (i) the preliminary project stage is completed and (ii) it is probable that the software will be completed and used for its intended function. Capitalization ceases when the software is substantially complete and ready for its intended use, including the completion of all significant testing. Costs related to preliminary project activities and post-implementation operating activities are expensed as incurred. Capitalized costs are included in property and equipment. These costs are amortized over the estimated useful life of the software (generally two years) on a straight-line basis. Management evaluates the useful life of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. The amortization of costs related to the platform applications is included in cost of revenue. |
Business Combinations | The Company applies the acquisition method of accounting for business combinations. Under this method of accounting, all assets acquired and liabilities assumed are recorded at their respective fair values at the date of the acquisition. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, discount rates, intangibles, and other asset lives, among other items. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Market participants are assumed to be buyers and sellers in the principal (most advantageous) market for the asset or liability. Additionally, fair value measurements for an asset assume the highest and best use of that asset by market participants. As a result, the Company may be required to value the acquired assets at fair value measures that do not reflect its intended use of those assets. Use of different estimates and judgments could yield different results. Any excess of the purchase price over the fair value of the net assets acquired is recognized as goodwill. If the fair value of net assets acquired exceeds the fair value of purchase price, a gain on bargain purchase is recognized within the accompanying consolidated statements of operations. Although the Company believes the assumptions and estimates it has made are reasonable and appropriate, they are based in part on historical experience and |
Accounting for Impairment of Long-Lived Assets | The Company evaluates long-lived assets, such as property and equipment and acquired intangibles, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets held and used is measured by comparison of the carrying amount of an asset or an asset group to estimated undiscounted future net cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset exceeds these estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the assets exceeds the fair value of the asset or asset group, based on discounted cash flows. |
Goodwill | Goodwill is not amortized, but rather is tested for impairment at least annually or more frequently if indicators of impairment are present. The Company operates as one reporting unit and performs its annual goodwill impairment analysis as of the first day of the fourth quarter of each year. In assessing impairment on goodwill, the Company may bypass a qualitative assessment and proceeds directly to performing a quantitative evaluation of the fair value of its single reporting unit, in order to compare it against the carrying value of the reporting unit. A goodwill impairment charge is recognized for the amount by which the reporting unit’s fair value is less than its carrying value. Any loss recognized will not exceed the total amount of goodwill allocated to that reporting unit. |
Operating Leases | The Company leases real estate facilities under non-cancelable operating leases with various expiration dates through fiscal year 2031. The Company determines if an arrangement contains a lease at inception based on whether there is an identified property, plant or equipment and whether the Company controls the use of the identified asset throughout the period of use. The Company adopted the Accounting Standard Update (“ASU”) No. 2016-02, Leases ( Topic 842 ) on November 1, 2019. Operating leases are included in operating lease right-of-use (“ROU”) assets and in operating lease liabilities in the accompanying consolidated balance sheets. Operating lease ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at the lease inception date based on the present value of lease payments over the lease term discounted based on the more readily determinable of (i) the rate implicit in the lease or (ii) the Company’s incremental borrowing rate (which is the estimated rate the Company would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease). Because the Company’s operating leases generally do not provide an implicit rate, the Company estimates its incremental borrowing rate based on the information available at lease commencement date for borrowings with a similar term. The Company’s operating lease ROU assets are measured based on the corresponding operating lease liability adjusted for (i) payments made to the lessor at or before the commencement date, (ii) initial direct costs incurred and (iii) tenant incentives under the lease. The Company does not assume renewals or early terminations unless it is reasonably certain to exercise these options at commencement. The Company does not allocate consideration between lease and non-lease components. Variable lease payments are recognized in the period in which the obligation for those payments are incurred. In addition, the Company does not recognize ROU assets or lease liabilities for leases with a term of 12 months or less of all asset classes. Operating lease expense is recognized on a straight-line basis over the lease term. Lease accounting prior to the adoption of Topic 842 (ASC 840) |
Convertible Senior Notes | The Notes are accounted for in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Subtopic 470-20, Debt with Conversion and Other Options . Pursuant to ASC Subtopic 470-20, issuers of certain convertible debt instruments, such as the Notes, that have a net settlement feature and may be settled wholly or partially in cash upon conversion are required to separately account for the liability (debt) and equity (conversion option) components of the instrument. The carrying amount of the liability component of the instrument is computed by estimating the fair value of a similar liability without the conversion option using a market-based approach. The amount of the equity component is then calculated by deducting the fair value of the liability component from the principal amount of the instrument. The difference between the principal amount and the liability component represents a debt discount that is amortized to interest expense over the respective term of the Notes using the effective interest rate method. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the issuance costs related to the Notes, the allocation of issuance costs incurred between the liability and equity components was based on their relative values. |
Recently Adopted Accounting Standards and Recently Issued Accounting Standards Not Yet Adopted | In June 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments , which requires an entity to utilize a new impairment model known as the current expected credit loss (“CECL”) model to estimate its “expected credit loss” and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in more timely recognition of credit losses. This guidance also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. The Company adopted Topic 326 as of February 1, 2020. The adoption of this new standard did not have a material impact on the accompanying consolidated financial statements as credit losses are not expected to be significant based on historical collection trends, the financial condition of payment partners, and external market factors. The Company will continue to actively monitor the impact of the COVID-19 on expected credit losses. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The Company adopted ASU No. 2018-13 as of February 1, 2020. The adoption of this new standard did not have a material impact on the accompanying consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , which aligns the accounting for implementation costs incurred in a hosting arrangement that is a service contract with the accounting for implementation costs incurred to develop or obtain internal-use software under ASC 350-40, in order to determine which costs to capitalize and recognize as an asset and which costs to expense. The Company adopted ASU No. 2018-15 as of February 1, 2020 using a prospective transition approach. The adoption of this new standard did not have a material impact on the accompanying consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes which simplifies the accounting for income taxes by removing certain exceptions to the general principles of income taxes and reducing the cost and complexity in accounting for income taxes. The Company early adopted ASU No. 2019-12 as of February 1, 2020 using the prospective transition approach. The adoption of this new standard did not have a material impact on the accompanying consolidated financial statements. Recently Issued Accounting Standards Not Yet Adopted In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies accounting for convertible instruments by removing major separation models required under current U.S. GAAP. ASU No. 2020-06 removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and it also simplifies the diluted earnings per share calculation in certain areas. ASU No. 2020-06 is effective for public companies for annual periods beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted for annual periods beginning after December 15, 2020, and interim periods within those fiscal years. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Accounting Policies [Abstract] | |
Reconciliation of Cash, Cash Equivalents and Restricted Cash to Statements of Cash Flows | A reconciliation of cash, cash equivalents and restricted cash to the accompanying consolidated statements of cash flows is as follows (in thousands): As of January 31, 2021 2020 Cash and cash equivalents $ 1,081,357 $ 498,999 Restricted cash 38,490 38,490 Total cash, cash equivalents and restricted cash $ 1,119,847 $ 537,489 |
Reconciliation of Cash, Cash Equivalents and Restricted Cash to Statements of Cash Flows | A reconciliation of cash, cash equivalents and restricted cash to the accompanying consolidated statements of cash flows is as follows (in thousands): As of January 31, 2021 2020 Cash and cash equivalents $ 1,081,357 $ 498,999 Restricted cash 38,490 38,490 Total cash, cash equivalents and restricted cash $ 1,119,847 $ 537,489 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Liabilities | Contract liabilities consist of deferred revenue. The changes in deferred revenue were as follows (in thousands): Year Ended January 31, 2021 Balance, beginning of year $ 376,714 Billings 1,036,501 Revenue (902,610) Balance, end of year $ 510,605 |
Schedule of Revenues by Geographical Area | The following table shows the Company’s revenue by geographic areas, as determined based on the billing address of its customers (in thousands): Year ended January 31, 2021 2020 2019 United States $ 554,494 $ 394,716 $ 255,155 International 348,116 235,706 145,397 Total $ 902,610 $ 630,422 $ 400,552 |
Cash, Cash Equivalents and Ma_2
Cash, Cash Equivalents and Marketable Securities (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents and Marketable Securities | The following tables summarize amortized costs, unrealized gains and losses, and estimated fair value related to cash, cash equivalents, and marketable securities on the Company’s consolidated balance sheets (in thousands): As of January 31, 2021 Amortized Unrealized Unrealized Fair value Cash and cash equivalents: Cash $ 98,280 $ — $ — $ 98,280 Money market funds 407,670 — — 407,670 Certificates of deposit 75,432 — — 75,432 U.S. government securities 499,975 1 (1) 499,975 Total cash and cash equivalents 1,081,357 1 (1) 1,081,357 Marketable securities: Certificates of deposit 5,500 35 — 5,535 U.S. agency securities 162,673 142 (6) 162,809 U.S. government securities 292,091 57 (5) 292,143 Corporate bonds 45,184 224 — 45,408 Total marketable securities 505,448 458 (11) 505,895 Total cash, cash equivalents and marketable securities $ 1,586,805 $ 459 $ (12) $ 1,587,252 As of January 31, 2020 Amortized Unrealized Unrealized Fair value Cash and cash equivalents: Cash $ 71,593 $ — $ — $ 71,593 Money market funds 357,524 — — 357,524 Commercial paper 69,891 — (9) 69,882 Total cash and cash equivalents 499,008 — (9) 498,999 Marketable securities: Commercial paper 19,799 4 (8) 19,795 U.S. agency securities 29,460 55 — 29,515 U.S. government securities 97,071 102 (1) 97,172 International government securities 8,109 6 — 8,115 Corporate bonds 114,871 139 (14) 114,996 Total marketable securities 269,310 306 (23) 269,593 Total cash, cash equivalents and marketable securities $ 768,318 $ 306 $ (32) $ 768,592 |
Schedule of Marketable Securities by Contractual Maturity | The following table classifies marketable securities by contractual maturities (in thousands): As of January 31, 2021 2020 Due in one year $ 372,978 $ 190,344 Due in one to two years 132,917 79,249 Total $ 505,895 $ 269,593 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Measured at Fair Value on a Recurring Basis | The following table provides the financial instruments measured at fair value on a recurring basis, within the fair value hierarchy (in thousands): As of January 31, 2021 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 407,670 $ — $ — $ 407,670 Certificates of deposit — 75,432 — 75,432 U.S. government securities — 499,975 — 499,975 Total cash equivalents $ 407,670 $ 575,407 $ — $ 983,077 Marketable securities: Certificates of deposit $ — $ 5,535 $ — $ 5,535 U.S. agency securities — 162,809 — 162,809 U.S. government securities — 292,143 — 292,143 Corporate bonds — 45,408 — 45,408 Total marketable securities $ — $ 505,895 $ — $ 505,895 Noncurrent assets: Strategic investments $ — $ — $ 68,161 $ 68,161 As of January 31, 2020 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 357,524 $ — $ — $ 357,524 Commercial paper — 69,882 — 69,882 Total cash equivalents $ 357,524 $ 69,882 $ — $ 427,406 Marketable securities: Commercial paper $ — $ 19,795 $ — $ 19,795 U.S. agency securities — 29,515 — 29,515 U.S. government securities — 97,172 — 97,172 International government securities — 8,115 — 8,115 Corporate bonds — 114,996 — 114,996 Total marketable securities $ — $ 269,593 $ — $ 269,593 Noncurrent assets: Strategic investments $ — $ — $ 28,814 $ 28,814 |
Schedule of Level 3 Assets Measured at Fair Value on Recurring Basis | The following table presents additional information about Level 3 assets measured at fair value on a recurring basis (in thousands): Year ended January 31, 2021 2020 Balance at beginning of year $ 28,814 $ 12,334 Purchases 20,045 14,132 Proceeds from liquidation (976) (3,251) Realized gains (losses) (91) 2,285 Unrealized gains relating to investments still held at reporting date 20,369 3,314 Balance at end of year $ 68,161 $ 28,814 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment by Category | The following is a summary of the Company’s property and equipment by category (in thousands): As of January 31, 2021 2020 Leasehold improvements $ 106,222 $ 98,770 Furniture and fixtures 29,956 27,384 Capitalized internal-use software costs 4,241 4,241 Computer equipment 4,189 3,183 Construction in progress 2,963 10,345 Property and equipment, gross 147,571 143,923 Less: accumulated depreciation and amortization (59,663) (41,583) Property and equipment, net $ 87,908 $ 102,340 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Leases [Abstract] | |
Schedule of Operating Leases, Other Information | The following table sets forth a summary of and other information pertaining to the Company’s operating leases since the adoption of Topic 842 (dollars in thousands): Year ended January 31, 2021 2020 Operating cash flows used for operating leases $ 25,603 $ 9,495 Operating lease liabilities arising from obtaining ROU assets $ 61,685 $ 4,832 Weighted average remaining terms 8.0 years 8.3 years Weighted average discount rate 5.2 % 5.2 % |
Schedule of Maturities of Operating Lease Liabilities | Future minimum lease payments under non-cancelable operating leases with initial lease terms in excess of one year as of January 31, 2021 as follows (in thousands): Year ending January 31, 2022 $ 34,943 2023 52,150 2024 50,794 2025 53,232 2026 53,980 Thereafter 213,709 Gross lease payments 458,808 Less: Imputed interest (70,857) Less: Tenant improvement receivables (24,294) Less: Leases executed but not yet commenced (103,461) Present value of lease liabilities $ 260,196 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of Fair Value of Purchase Price and Purchase Price Allocation | The acquisition date fair value of the purchase price was $40.1 million, which consisted of the following (in thousands): Fair Value Cash $ 653 Fair value of Class A common stock transferred 28,060 Fair value of the pre-combination service portion of restricted stock 11,435 Total purchase price $ 40,148 The following table presents the purchase price allocation recorded in the Company’s consolidated balance sheet as of the date of acquisition (in thousands): Fair Value Cash and cash equivalents $ 7,224 Accounts receivable and other assets 732 Operating lease right-of-use assets 616 Intangible assets 7,000 Goodwill 27,606 Accounts payable and other liabilities (464) Operating lease liability (637) Deferred revenue (990) Deferred tax liability (939) Total purchase price $ 40,148 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands): Fair Value Useful Life Developed technology $ 4,900 3 years Customer relationships 2,100 3 years Total identifiable intangible assets $ 7,000 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | The following table reflects the changes in the carrying amount of goodwill (in thousands): Year ended January 31, 2021 2020 Balance at beginning of year $ 48,598 $ 48,598 Addition due to business combination 27,606 — Balance at end of year $ 76,204 $ 48,598 |
Schedule of Intangible Assets | Intangible assets as of January 31, 2021 and 2020 consist of the following (in thousands, except years): As of January 31, 2021 Weighted-average Gross carrying Accumulated Net carrying Customer relationships 4.0 years $ 11,200 $ 3,712 $ 7,488 Developed technology 2.0 years 13,427 8,162 5,265 Patents and licenses 5.6 years 5,875 743 5,132 Assembled workforce 0.0 years 1,198 1,198 — Total $ 31,700 $ 13,815 $ 17,885 As of January 31, 2020 Weighted-average Gross carrying Accumulated Net carrying Customer relationships 5.5 years $ 9,100 $ 2,004 $ 7,096 Developed technology 1.6 years 8,527 4,976 3,551 Patents 4.9 years 2,500 42 2,458 Assembled workforce 0.7 years 1,198 773 425 Total $ 21,325 $ 7,795 $ 13,530 |
Schedule of Expected Amortization Expense Related to Intangible Assets | As of January 31, 2021, expected amortization expense relating to intangible assets for each of the next five years and thereafter is as follows (in thousands): Year ending January 31, 2022 $ 5,934 2023 4,615 2024 3,254 2025 2,240 2026 1,078 Thereafter 764 Total $ 17,885 |
Accrued Compensation and Bene_2
Accrued Compensation and Benefits (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Compensation Related Costs [Abstract] | |
Schedule of Accrued Compensation and Benefits | Accrued compensation and benefits consists of the following (in thousands): As of January 31, 2021 2020 Accrued bonus $ 47,929 $ 28,829 Other 60,939 36,367 Accrued compensation and benefits $ 108,868 $ 65,196 |
Debt and Financing Arrangemen_2
Debt and Financing Arrangements (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Debt | As of January 31, 2021, the net carrying amount of the liability component of the Notes was as follows (in thousands): Principal $ 862,500 Less: unamortized discount (197,339) Less: unamortized issuance costs (13,763) Net carrying amount $ 651,398 As of January 31, 2021, the net carrying amount of the equity component of the Notes was as follows (in thousands): Proceeds allocated to the conversion options (debt discount) $ 229,249 Less: issuance costs (5,627) Carrying amount of the equity component $ 223,622 The following table sets forth the interest expense recognized related to the Notes for the year ended January 31, 2021 (in thousands): Contractual interest expense $ 3,486 Amortization of debt discount 31,910 Amortization of debt issuance costs 1,781 Total interest expense related to the Notes $ 37,177 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Equity [Abstract] | |
Schedule of Reserved Shares of Common Stock for Future Issuance | The Company had reserved shares of common stock for future issuance as follows (in thousands): As of Stock options outstanding 6,228 Restricted stock units outstanding 34,700 Shares available for future grants 74,349 Shares available for ESPP 12,771 Total 128,048 |
Schedule of Stock Options Activity | A summary of stock option activity under the 2009 Plan and 2019 Plan and related information is as follows (in thousands, except years and per share data): Number of stock options outstanding Weighted-average exercise price per share Weighted-average remaining contractual term (In years) Aggregate intrinsic value Outstanding at January 31, 2020 8,425 $ 4.68 6.27 $ 135,224 Granted 1,678 24.31 Exercised (3,602) 3.65 Canceled (273) 10.52 Outstanding at January 31, 2021 6,228 $ 10.31 6.89 $ 198,434 Stock options vested and exercisable at January 31, 2021 2,765 $ 3.54 4.88 $ 106,787 Stock options vested and expected to vest at January 31, 2021 6,228 $ 10.31 6.89 $ 198,434 |
Schedule of Restricted Stock Units and Restricted Stock Activity | A summary of RSUs and RSAs activity under the 2009 Plan and 2019 Plan is as follows (in thousands, except per share data): Restricted stock units Restricted stock awards Number of shares Weighted-average grant date fair value Number of shares Weighted-average grant date fair value Unvested at January 31, 2020 42,002 $ 12.48 1,579 $ 8.91 Granted 15,352 27.56 — — Released (18,517) 12.01 (480) 8.96 Canceled (4,137) 14.81 — — Unvested at January 31, 2021 34,700 $ 19.13 1,099 $ 8.89 |
Schedule of Stock-Based Compensation Expense | A summary of the stock-based compensation excluding stock transfers recorded in the accompanying consolidated statements of operations is as follows (in thousands): Year ended January 31, 2021 2020 2019 Cost of revenue $ 10,186 $ 16,013 $ 199 Research and development 115,047 226,507 3,720 Sales and marketing 59,267 98,797 970 General and administrative 42,863 85,207 3,422 Total $ 227,363 $ 426,524 $ 8,311 |
Schedule of Assumptions Used in Valuation of Stock Options | The following assumptions used in the valuation of stock options and ESPP: Stock Option ESPP Year ended January 31, Year ended January 31, 2021 2020 2021 2020 Expected Term 6.1 years 6.1 - 6.5 years 0.5 years 0.3 - 0.5 years Expected volatility 46% 43% - 44% 49% - 57% 40% - 42% Risk-free interest rate 0.51% 2.33% - 2.52% 0.12% - 0.24% 1.68% - 2.08% Dividend yield —% —% —% —% Fair value of common stock on grant date $24.31 $11.67 - $19.36 $24.70 - $31.79 $23.82 - $38.62 |
Schedule of Assumptions Used in Valuation of ESPP | The following assumptions used in the valuation of stock options and ESPP: Stock Option ESPP Year ended January 31, Year ended January 31, 2021 2020 2021 2020 Expected Term 6.1 years 6.1 - 6.5 years 0.5 years 0.3 - 0.5 years Expected volatility 46% 43% - 44% 49% - 57% 40% - 42% Risk-free interest rate 0.51% 2.33% - 2.52% 0.12% - 0.24% 1.68% - 2.08% Dividend yield —% —% —% —% Fair value of common stock on grant date $24.31 $11.67 - $19.36 $24.70 - $31.79 $23.82 - $38.62 |
Interest Income and_Other Inc_2
Interest Income and Other Income, Net (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income (Expense), Net | Interest income and other income, net consist of the following (in thousands): Year ended January 31, 2021 2020 2019 Interest income $ 6,698 $ 17,048 $ 13,834 Unrealized gains (losses) on foreign exchange 2,140 (786) (869) Transaction losses on foreign exchange (730) (1,526) (99) Change in fair value of strategic investments 20,278 5,599 3,701 Other non-operating income, net — 1,033 13 Interest income and other income, net $ 28,386 $ 21,368 $ 16,580 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Loss Before Income Taxes | Loss before income taxes consisted of the following (in thousands): Year ended January 31, 2021 2020 2019 United States $ (169,376) $ (294,259) $ (85,175) Foreign (123,427) (273,509) (52,887) Total $ (292,803) $ (567,768) $ (138,062) |
Schedule of Components of Income Tax Expense (Benefit) | The components of the Company’s provision for (benefit from) income tax are as follows (in thousands): Year ended January 31, 2021 2020 2019 Current: Federal $ — $ — $ — State 494 303 355 Foreign 2,443 1,919 279 Total current 2,937 2,222 634 Deferred: Federal (754) (120) (200) State (182) (23) (120) Foreign (2,316) (1,490) 526 Total deferred (3,252) (1,633) 206 Provision for (benefit from) income taxes $ (315) $ 589 $ 840 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the U.S. federal statutory tax rate to the Company’s provision for income tax is as follows: Year ended January 31, 2021 2020 2019 Tax at statutory federal rate 21.00 % 21.00 % 21.00 % State tax, net of federal benefit 8.14 12.68 2.12 Stock-based compensation 23.51 45.16 (2.95) Credits 9.48 17.37 6.01 Foreign rate differential (4.18) (7.06) 9.52 Other (1.50) (1.48) (3.67) Change in valuation allowance (56.34) (87.77) (32.64) Effective tax rate 0.11 % (0.10) % (0.61) % |
Schedule of Deferred Tax Assets and Liabilities | The Company’s deferred income tax assets and liabilities consisted of the following (in thousands): Year ended January 31, 2021 2020 Deferred tax assets (liabilities): Accrued liabilities $ 17,041 $ 10,646 Accounts receivable 92 93 Operating lease liabilities 71,290 51,085 Operating lease right-of-use assets (52,993) (42,919) Net operating losses 553,188 415,236 Tax credits 148,576 120,743 Goodwill and intangible assets 13,205 13,176 Property and equipment (10,036) 2,566 Stock-based compensation 39,895 43,182 Other (388) (1,309) Total gross deferred tax assets 779,870 612,499 Valuation allowance (775,987) (611,027) Total deferred tax assets (liabilities), net $ 3,883 $ 1,472 |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of total unrecognized tax benefits, exclusive of interest and penalties described below, is as follows (in thousands): Year ended January 31, 2021 2020 2019 Balance at beginning of year $ 37,495 $ 20,484 $ 18,545 Increase related to prior year tax provisions 1,067 1 — Decrease related to prior year tax provisions (1,445) (2,495) (2,076) Increase related to current year tax provisions 6,134 19,526 4,022 Lapse of statute of limitations — (21) (7) Balance at end of year $ 43,251 $ 37,495 $ 20,484 |
Net Loss per Share Attributab_2
Net Loss per Share Attributable to Slack Common Stockholders (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule Calculation of Basic and Diluted Net Loss Per Share | The following table presents the calculation of basic and diluted net loss per share attributable to Slack common stockholders (in thousands, except per share data): Year ended January 31, 2021 2020 2019 Numerator: Net loss attributable to Slack $ (300,422) $ (571,058) $ (140,683) Denominator: Weighted average common shares outstanding 567,152 399,461 121,732 Net loss per share attributable to Slack common stockholders, basic and diluted $ (0.53) $ (1.43) $ (1.16) |
Schedule of Potentially Dilutive Securities Excluded from Diluted Per Share Calculations | Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows (in thousands) As of January 31, 2021 2020 2018 Shares related to convertible senior notes 27,827 — — Convertible preferred stock — — 373,372 Stock options 6,228 8,425 18,406 Unvested early exercised stock options 64 — 115 Restricted stock units 34,700 42,002 63,114 Restricted stock awards 1,099 1,579 2,289 Restricted stock 648 — — Employee stock purchase plan 628 814 — Total antidilutive securities 71,194 52,820 457,296 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Revenue and Tangible Long-Lived Assets by Geographical Area | The following table sets forth the Company’s long-lived assets by geographic area, which consist of property and equipment, net and operating lease right-of-use assets (in thousands): As of January 31, 2021 2020 United States $ 268,851 $ 256,695 International 38,252 43,475 Total $ 307,103 $ 300,170 |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies - Narrative (Details) | Dec. 01, 2020USD ($)extension$ / sharesshares | Jun. 20, 2019USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2015USD ($) | Jan. 31, 2021USD ($)segmentreporting_unit | Jan. 31, 2020USD ($) | Jan. 31, 2019USD ($) | Jan. 31, 2020USD ($) | Apr. 09, 2020USD ($) |
Subsidiary, Sale of Stock [Line Items] | |||||||||
Advertising costs | $ 45,700,000 | $ 38,100,000 | $ 61,700,000 | ||||||
Number of operating segments | segment | 1 | ||||||||
Number of reportable segments | segment | 1 | ||||||||
Long-lived asset impairment charges | $ 0 | 0 | 0 | ||||||
Number of reporting units | reporting_unit | 1 | ||||||||
Goodwill impairment charges | $ 0 | 0 | $ 0 | ||||||
Deferred costs amortization period | 4 years | ||||||||
Convertible Debt | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Aggregate principal amount | $ 862,500,000 | ||||||||
Stated interest percentage | 0.50% | ||||||||
Slack Technologies, Inc. | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Transaction expenses related to merger | $ 8,700,000 | ||||||||
Computer Equipment and Software | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Useful life of property and equipment | 2 years | ||||||||
Furniture and fixtures | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Useful life of property and equipment | 5 years | ||||||||
Internal-Use Software Development Costs | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Useful life of property and equipment | 2 years | ||||||||
Slack Fund L.L.C. | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Agreed upon commitments to acquire interest in entity | $ 13,000,000 | ||||||||
Voting interest acquired (as percent) | 52.00% | ||||||||
Contributions made to acquired entity since inception | $ 13,000,000 | ||||||||
Slack Fund L.L.C. | Subsequent Event | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Contributions made to acquired entity since inception | $ 22,600,000 | ||||||||
Restricted stock units | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Compensation expense | $ 245,100,000 | ||||||||
Restricted stock units | 2009 Stock Plan | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Vesting period | 4 years | ||||||||
Restricted stock units | 2019 Stock Option and Incentive Plan | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Vesting period | 4 years | ||||||||
Restricted stock awards | 2009 Stock Plan | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Vesting period | 4 years | ||||||||
Cliff Vesting Period | Restricted stock units | 2009 Stock Plan | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Vesting period | 1 year | ||||||||
Cliff Vesting Period | Restricted stock units | 2019 Stock Option and Incentive Plan | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Vesting period | 1 year | ||||||||
Cliff Vesting Period | Restricted stock awards | 2009 Stock Plan | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Vesting period | 1 year | ||||||||
Direct Listing | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Financial advisory service, audit and legal fees associated with direct listing | $ 30,400,000 | ||||||||
Slack Fund L.L.C. | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Liquidation period for entity acquired | 10 years | ||||||||
Liquidation extension period for entity acquired | 3 years | ||||||||
Salesforce | Slack Technologies, Inc. | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Number of shares received upon conversion of issued and outstanding common stock (in shares) | shares | 0.0776 | ||||||||
Value of cash received upon conversion (in dollars per share) | $ / shares | $ 26.79 | ||||||||
Number of potential extensions | extension | 2 | ||||||||
Term of potential extensions | 3 months | ||||||||
Potential fees owed upon termination of merger agreement | $ 900,000,000 | ||||||||
Minimum | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Subscription service contract term | 1 month | ||||||||
Maximum | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Subscription service contract term | 36 months |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash to Statements of Cash Flows (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 1,081,357 | $ 498,999 | ||
Restricted cash | 38,490 | 38,490 | ||
Total cash, cash equivalents and restricted cash | $ 1,119,847 | $ 537,489 | $ 201,260 | $ 138,063 |
Revenue - Schedule of Contract
Revenue - Schedule of Contract Liabilities (Details) $ in Thousands | 12 Months Ended |
Jan. 31, 2021USD ($) | |
Contract With Customer, Liability [Roll Forward] | |
Balance, beginning of year | $ 376,714 |
Billings | 1,036,501 |
Revenue | (902,610) |
Balance, end of year | $ 510,605 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||
Deferred incremental costs of obtaining a contract | $ 33,800,000 | $ 23,600,000 | $ 15,800,000 |
Deferred commissions, net included in prepaid expenses and other current assets | 19,300,000 | 11,200,000 | |
Deferred commissions net, included in other assets | 31,300,000 | 21,400,000 | |
Amortization of deferred contract acquisition costs | 15,767,000 | 8,153,000 | 3,154,000 |
Impairment loss related to deferred costs | $ 0 | $ 0 | $ 0 |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligations (Details) $ in Millions | Jan. 31, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
Future estimated revenue related to unsatisfied or partially satisfied performance obligations | $ 860 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-02-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations expected to be recognized (as a percent) | 69.00% |
Performance obligations expected to be satisfied, expected timing | 12 months |
Revenue - Schedule of Revenue b
Revenue - Schedule of Revenue by Geographic Areas (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 902,610 | $ 630,422 | $ 400,552 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 554,494 | 394,716 | 255,155 |
International | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 348,116 | $ 235,706 | $ 145,397 |
Cash, Cash Equivalents and Ma_3
Cash, Cash Equivalents and Marketable Securities - Schedule of Cash and Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Cash and cash equivalents, amortized cost | $ 1,081,357 | $ 498,999 |
Total cash, cash equivalents and marketable securities, amortized cost | 1,586,805 | 768,318 |
Total cash, cash equivalents and marketable securities, unrealized gains | 459 | 306 |
Total cash, cash equivalents and marketable securities, unrealized losses | (12) | (32) |
Total cash, cash equivalents and marketable securities, fair value | 1,587,252 | 768,592 |
Marketable securities: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Marketable securities, amortized cost | 505,448 | 269,310 |
Marketable securities, unrealized gains | 458 | 306 |
Marketable securities, unrealized losses | (11) | (23) |
Marketable securities, fair value | 505,895 | 269,593 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Marketable securities, amortized cost | 5,500 | |
Marketable securities, unrealized gains | 35 | |
Marketable securities, unrealized losses | 0 | |
Marketable securities, fair value | 5,535 | |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Marketable securities, amortized cost | 19,799 | |
Marketable securities, unrealized gains | 4 | |
Marketable securities, unrealized losses | (8) | |
Marketable securities, fair value | 19,795 | |
U.S. agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Marketable securities, amortized cost | 162,673 | 29,460 |
Marketable securities, unrealized gains | 142 | 55 |
Marketable securities, unrealized losses | (6) | 0 |
Marketable securities, fair value | 162,809 | 29,515 |
U.S. government securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Marketable securities, amortized cost | 292,091 | 97,071 |
Marketable securities, unrealized gains | 57 | 102 |
Marketable securities, unrealized losses | (5) | (1) |
Marketable securities, fair value | 292,143 | 97,172 |
International government securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Marketable securities, amortized cost | 8,109 | |
Marketable securities, unrealized gains | 6 | |
Marketable securities, unrealized losses | 0 | |
Marketable securities, fair value | 8,115 | |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Marketable securities, amortized cost | 45,184 | 114,871 |
Marketable securities, unrealized gains | 224 | 139 |
Marketable securities, unrealized losses | 0 | (14) |
Marketable securities, fair value | 45,408 | 114,996 |
Total cash and cash equivalents | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cash and cash equivalents, amortized cost | 1,081,357 | 499,008 |
Cash and cash equivalents, unrealized gains | 1 | 0 |
Cash and cash equivalents, unrealized losses | (1) | (9) |
Cash and cash equivalents, fair value | 1,081,357 | 498,999 |
Cash | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cash and cash equivalents, amortized cost | 98,280 | 71,593 |
Cash and cash equivalents, unrealized gains | 0 | 0 |
Cash and cash equivalents, unrealized losses | 0 | 0 |
Cash and cash equivalents, fair value | 98,280 | 71,593 |
Money market funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cash and cash equivalents, amortized cost | 407,670 | 357,524 |
Cash and cash equivalents, unrealized gains | 0 | 0 |
Cash and cash equivalents, unrealized losses | 0 | 0 |
Cash and cash equivalents, fair value | 407,670 | 357,524 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cash and cash equivalents, amortized cost | 75,432 | |
Cash and cash equivalents, unrealized gains | 0 | |
Cash and cash equivalents, unrealized losses | 0 | |
Cash and cash equivalents, fair value | 75,432 | |
U.S. government securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cash and cash equivalents, amortized cost | 499,975 | |
Cash and cash equivalents, unrealized gains | 1 | |
Cash and cash equivalents, unrealized losses | (1) | |
Cash and cash equivalents, fair value | $ 499,975 | |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cash and cash equivalents, amortized cost | 69,891 | |
Cash and cash equivalents, unrealized gains | 0 | |
Cash and cash equivalents, unrealized losses | (9) | |
Cash and cash equivalents, fair value | $ 69,882 |
Cash, Cash Equivalents and Ma_4
Cash, Cash Equivalents and Marketable Securities - Schedule of Marketable Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Cash and Cash Equivalents [Abstract] | ||
Due in one year | $ 372,978 | $ 190,344 |
Due in one to two years | 132,917 | 79,249 |
Total | $ 505,895 | $ 269,593 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Instruments Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 505,895 | $ 269,593 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 407,670 | 357,524 |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 75,432 | |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 69,882 | |
U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 499,975 | |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 983,077 | 427,406 |
Marketable securities | 505,895 | 269,593 |
Strategic investments | 68,161 | 28,814 |
Fair Value, Recurring | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 5,535 | |
Fair Value, Recurring | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 19,795 | |
Fair Value, Recurring | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 162,809 | 29,515 |
Fair Value, Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 292,143 | 97,172 |
Fair Value, Recurring | International government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 8,115 | |
Fair Value, Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 45,408 | 114,996 |
Fair Value, Recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 407,670 | 357,524 |
Fair Value, Recurring | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 75,432 | |
Fair Value, Recurring | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 69,882 | |
Fair Value, Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 499,975 | |
Fair Value, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 407,670 | 357,524 |
Marketable securities | 0 | 0 |
Strategic investments | 0 | 0 |
Fair Value, Recurring | Level 1 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Fair Value, Recurring | Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Fair Value, Recurring | Level 1 | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring | Level 1 | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring | Level 1 | International government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Fair Value, Recurring | Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring | Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 407,670 | 357,524 |
Fair Value, Recurring | Level 1 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | |
Fair Value, Recurring | Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | |
Fair Value, Recurring | Level 1 | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | |
Fair Value, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 575,407 | 69,882 |
Marketable securities | 505,895 | 269,593 |
Strategic investments | 0 | 0 |
Fair Value, Recurring | Level 2 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 5,535 | |
Fair Value, Recurring | Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 19,795 | |
Fair Value, Recurring | Level 2 | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 162,809 | 29,515 |
Fair Value, Recurring | Level 2 | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 292,143 | 97,172 |
Fair Value, Recurring | Level 2 | International government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 8,115 | |
Fair Value, Recurring | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 45,408 | 114,996 |
Fair Value, Recurring | Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Fair Value, Recurring | Level 2 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 75,432 | |
Fair Value, Recurring | Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 69,882 | |
Fair Value, Recurring | Level 2 | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 499,975 | |
Fair Value, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Marketable securities | 0 | 0 |
Strategic investments | 68,161 | 28,814 |
Fair Value, Recurring | Level 3 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Fair Value, Recurring | Level 3 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Fair Value, Recurring | Level 3 | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring | Level 3 | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring | Level 3 | International government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Fair Value, Recurring | Level 3 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring | Level 3 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Fair Value, Recurring | Level 3 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | |
Fair Value, Recurring | Level 3 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 0 | |
Fair Value, Recurring | Level 3 | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 0 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Level 3 Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of year | $ 28,814 | $ 12,334 |
Purchases | 20,045 | 14,132 |
Proceeds from liquidation | (976) | (3,251) |
Realized gains (losses) | (91) | 2,285 |
Unrealized gains relating to investments still held at reporting date | 20,369 | 3,314 |
Balance at end of year | $ 68,161 | $ 28,814 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 31, 2021 | Feb. 28, 2021 | Jan. 29, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Closing price of common stock on last trading day of quarter (in dollars per share) | $ 42.17 | ||
Subsequent Event | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Increase in unrealized gains related to strategic investments | $ 20.2 | ||
Convertible Debt | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Convertible debt, if-convertible value in excess of principal amount | $ 311 | ||
Level 2 | Shares related to convertible senior notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of convertible senior notes | $ 1,260 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment by Category (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 147,571 | $ 143,923 |
Less: accumulated depreciation and amortization | (59,663) | (41,583) |
Property and equipment, net | 87,908 | 102,340 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 106,222 | 98,770 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 29,956 | 27,384 |
Capitalized internal-use software costs | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,241 | 4,241 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,189 | 3,183 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,963 | $ 10,345 |
Property and Equipment, Net - N
Property and Equipment, Net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 22.9 | $ 23 | $ 15 |
Amount of internal-use software capitalized | 0 | 0 | 0.8 |
Amortization expense of capitalized internal-use software | 0.4 | 0.5 | $ 0.3 |
Net carrying value of capitalized internal-use software | $ 0 | $ 0.4 |
Operating Leases - Narrative (D
Operating Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Jan. 31, 2020 | Oct. 31, 2019 | Jan. 31, 2021 | Jan. 31, 2019 | |
Leases [Abstract] | ||||
Operating lease costs | $ 11,700 | $ 46,900 | ||
Variable lease costs | 1,700 | 6,700 | ||
Short-term lease costs | $ 700 | 2,600 | ||
Rent expense, net of sublease income | $ 26,300 | $ 27,700 | ||
Commitments for operating leases that have not yet commenced | $ 103,461 | |||
Operating leases that have not yet commenced, term of lease | 12 years |
Operating Leases - Schedule of
Operating Leases - Schedule of Operating Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Leases [Abstract] | ||
Operating cash flows used for operating leases | $ 25,603 | $ 9,495 |
Operating lease liabilities arising from obtaining ROU assets | $ 61,685 | $ 4,832 |
Weighted average remaining terms | 8 years | 8 years 3 months 18 days |
Weighted average discount rate | 5.20% | 5.20% |
Operating Leases - Schedule o_2
Operating Leases - Schedule of Maturities of Operating Lease Liabilities (Details) $ in Thousands | Jan. 31, 2021USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2022 | $ 34,943 |
2023 | 52,150 |
2024 | 50,794 |
2025 | 53,232 |
2026 | 53,980 |
Thereafter | 213,709 |
Gross lease payments | 458,808 |
Less: Imputed interest | (70,857) |
Less: Tenant improvement receivables | (24,294) |
Less: Leases executed but not yet commenced | (103,461) |
Present value of lease liabilities | $ 260,196 |
Business Combination - Narrativ
Business Combination - Narrative (Details) - Rimeto Inc. - USD ($) $ in Thousands | Jun. 29, 2020 | Jan. 31, 2021 |
Business Acquisition [Line Items] | ||
Post-combination stock based compensation | $ 11,400 | |
Total purchase price | $ 40,148 | |
General and administrative | ||
Business Acquisition [Line Items] | ||
Acquisition related costs | $ 1,500 | |
Restricted stock units | ||
Business Acquisition [Line Items] | ||
Vesting period | 4 years | |
Post-combination stock based compensation | $ 19,000 | |
Restricted stock | ||
Business Acquisition [Line Items] | ||
Vesting period | 4 years | |
Common Stock | ||
Business Acquisition [Line Items] | ||
Shares issued related to a business combination (in shares) | 1,659,715 | |
Shares subject to re-vesting restriction (in shares) | 740,837 |
Business Combination - Fair Val
Business Combination - Fair Value of Consideration Transferred (Details) - Rimeto Inc. $ in Thousands | Jun. 29, 2020USD ($) |
Business Acquisition [Line Items] | |
Cash | $ 653 |
Fair value of Class A common stock transferred | 28,060 |
Fair value of the pre-combination service portion of restricted stock | 11,435 |
Total purchase price | $ 40,148 |
Business Combination - Prelimin
Business Combination - Preliminary Purchase Price Allocation (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | $ 76,204 | $ 48,598 | $ 48,598 |
Rimeto Inc. | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 7,224 | ||
Accounts receivable and other assets | 732 | ||
Operating lease right-of-use assets | 616 | ||
Operating lease right-of-use assets | 7,000 | ||
Goodwill | 27,606 | ||
Accounts payable and other liabilities | (464) | ||
Operating lease liability | (637) | ||
Deferred revenue | (990) | ||
Deferred tax liability | (939) | ||
Total purchase price | $ 40,148 |
Business Combination - Identifi
Business Combination - Identifiable Intangible Assets Acquired (Details) - Rimeto Inc. $ in Thousands | 12 Months Ended |
Jan. 31, 2021USD ($) | |
Business Acquisition [Line Items] | |
Fair Value | $ 7,000 |
Developed technology | |
Business Acquisition [Line Items] | |
Fair Value | $ 4,900 |
Useful Life | 3 years |
Customer relationships | |
Business Acquisition [Line Items] | |
Fair Value | $ 2,100 |
Useful Life | 3 years |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Goodwill [Roll Forward] | ||
Balance at beginning of year | $ 48,598 | $ 48,598 |
Addition due to business combination | 27,606 | 0 |
Balance at end of year | $ 76,204 | $ 48,598 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | $ 31,700 | $ 21,325 | |
Accumulated amortization | 13,815 | 7,795 | |
Net carrying amount | 17,885 | 13,530 | |
Amortization expense of intangible assets | 6,000 | 4,200 | $ 1,800 |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 11,200 | 9,100 | |
Accumulated amortization | 3,712 | 2,004 | |
Net carrying amount | 7,488 | 7,096 | |
Developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 13,427 | 8,527 | |
Accumulated amortization | 8,162 | 4,976 | |
Net carrying amount | 5,265 | 3,551 | |
Patents and licenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 5,875 | ||
Accumulated amortization | 743 | ||
Net carrying amount | 5,132 | ||
Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 2,500 | ||
Accumulated amortization | 42 | ||
Net carrying amount | 2,458 | ||
Assembled workforce | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 1,198 | 1,198 | |
Accumulated amortization | 1,198 | 773 | |
Net carrying amount | $ 0 | $ 425 | |
Weighted Average | Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-average remaining amortization period | 4 years | 5 years 6 months | |
Weighted Average | Developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-average remaining amortization period | 2 years | 1 year 7 months 6 days | |
Weighted Average | Patents and licenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-average remaining amortization period | 5 years 7 months 6 days | ||
Weighted Average | Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-average remaining amortization period | 4 years 10 months 24 days | ||
Weighted Average | Assembled workforce | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-average remaining amortization period | 0 years | 8 months 12 days |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net - Schedule of Expected Amortization Expense (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2022 | $ 5,934 | |
2023 | 4,615 | |
2024 | 3,254 | |
2025 | 2,240 | |
2026 | 1,078 | |
Thereafter | 764 | |
Net carrying amount | $ 17,885 | $ 13,530 |
Accrued Compensation and Bene_3
Accrued Compensation and Benefits (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Compensation Related Costs [Abstract] | ||
Accrued bonus | $ 47,929 | $ 28,829 |
Other | 60,939 | 36,367 |
Accrued compensation and benefits | $ 108,868 | $ 65,196 |
Debt and Financing Arrangemen_3
Debt and Financing Arrangements - Narrative (Details) $ / shares in Units, shares in Millions | Apr. 09, 2020USD ($)day$ / sharesshares | May 30, 2019USD ($) | Jan. 31, 2021USD ($) |
Line of Credit Facility [Line Items] | |||
Letters of credit amount outstanding | $ 38,500,000 | ||
Convertible Debt | |||
Line of Credit Facility [Line Items] | |||
Aggregate principal amount | $ 862,500,000 | ||
Additional amount available for purchase | 112,500,000 | ||
Total net proceeds from debt offering | $ 841,300,000 | ||
Stated interest percentage | 0.50% | ||
Limitation on sale of common stock, sale price threshold, number of trading days | day | 20 | ||
Limitation on sale of common stock, sale price threshold, trading period | day | 30 | ||
Threshold percentage of stock price trigger | 130.00% | ||
Percentage of closing sale price in excess of convertible notes | 98.00% | ||
Conversion rate | 0.032263 | ||
Conversion price (in dollars per share) | $ / shares | $ 31 | ||
Redemption price percentage | 100.00% | ||
Percentage of aggregate principal amount | 25.00% | ||
Carrying amount of equity component | $ 229,200,000 | 229,249,000 | |
Initial cap price (in dollars per share) | $ / shares | $ 48.62 | ||
Number of shares covered in capped call transaction | shares | 27.8 | ||
Net cost incurred to purchase capped call transactions | $ 105,600,000 | ||
Convertible Debt | Discount Rate | |||
Line of Credit Facility [Line Items] | |||
Measurement input | 0.0685 | ||
Line of Credit | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 215,000,000 | ||
Potential increase in limit of aggregate commitments | $ 200,000,000 | ||
Potential increase in limit of aggregate commitments, as a percentage of adjusted EBITDA | 100.00% | ||
Commitment fee percentage | 0.10% | ||
Annual fee percentage | 1.25% | ||
Fronting fee percentage | 0.125% | ||
Letter of credit amount issued | 0 | ||
Letters of credit amount outstanding | 0 | ||
Remaining borrowing capacity | $ 215,000,000 | ||
Line of Credit | Prime Rate | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.25% | ||
Line of Credit | LIBOR | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.25% |
Debt and Financing Arrangemen_4
Debt and Financing Arrangements - Schedule of Net Carrying Amount of Liability Component (Details) - Convertible Debt $ in Thousands | Jan. 31, 2021USD ($) |
Debt Instrument [Line Items] | |
Principal | $ 862,500 |
Less: unamortized discount | (197,339) |
Less: unamortized issuance costs | (13,763) |
Net carrying amount | $ 651,398 |
Debt and Financing Arrangemen_5
Debt and Financing Arrangements - Schedule of Carrying Amount of Equity Component (Details) - Convertible Debt - USD ($) $ in Thousands | Jan. 31, 2021 | Apr. 09, 2020 |
Debt Instrument [Line Items] | ||
Proceeds allocated to the conversion options (debt discount) | $ 229,249 | $ 229,200 |
Less: issuance costs | (5,627) | |
Carrying amount of the equity component | $ 223,622 |
Debt and Financing Arrangemen_6
Debt and Financing Arrangements - Schedule of Interest Expense Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Debt Instrument [Line Items] | ||||
Amortization of debt issuance costs | $ 33,690 | $ 0 | $ 0 | |
Total interest expense related to the Notes | $ 38,105 | $ 858 | $ 434 | |
Convertible Debt | ||||
Debt Instrument [Line Items] | ||||
Contractual interest expense | $ 3,486 | |||
Amortization of debt discount | 31,910 | |||
Amortization of debt issuance costs | 1,781 | |||
Total interest expense related to the Notes | $ 37,177 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | Apr. 30, 2020USD ($) | Feb. 11, 2021lawsuit | Apr. 30, 2020lawsuit | Sep. 30, 2019lawsuit | Jan. 31, 2021USD ($) |
Long-term Purchase Commitment [Line Items] | |||||
Letters of credit amount outstanding | $ 38.5 | ||||
Number of class action lawsuits filed against the company | lawsuit | 3 | 7 | |||
Subsequent Event | |||||
Long-term Purchase Commitment [Line Items] | |||||
Number of lawsuits voluntarily dismissed | lawsuit | 13 | ||||
Subsequent Event | Northern District of California | |||||
Long-term Purchase Commitment [Line Items] | |||||
Number of class action lawsuits filed against the company | lawsuit | 7 | ||||
Subsequent Event | Southern District of New York | |||||
Long-term Purchase Commitment [Line Items] | |||||
Number of class action lawsuits filed against the company | lawsuit | 6 | ||||
Hosting Commitments | |||||
Long-term Purchase Commitment [Line Items] | |||||
Minimum annual commitment amount under hosting commitments | $ 75 | ||||
Increase in annual commitment amount under hosting commitments | 5 | ||||
Total minimum commitment amount under hosting commitments | $ 425 | ||||
Remaining minimum payment obligation | $ 353.7 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) $ / shares in Units, $ in Thousands | Feb. 01, 2020shares | Jun. 20, 2019USD ($) | Jun. 06, 2019shares | Jan. 31, 2021USD ($)planvote$ / sharesshares | Jan. 31, 2020USD ($)$ / sharesshares | Jan. 31, 2019USD ($)$ / sharesshares | Jun. 07, 2019shares |
Class of Stock [Line Items] | |||||||
Preferred stock, shares authorized (in shares) | 100,000,000 | ||||||
Number of equity incentive plans | plan | 2 | ||||||
Number of shares reserved for future issuance (in shares) | 128,048,000 | ||||||
Grant-date fair value of stock options granted | $ | $ 17,900 | $ 21,400 | $ 0 | ||||
Intrinsic value of stock options exercised | $ | 101,000 | $ 393,300 | $ 30,000 | ||||
Unrecognized stock based compensation expense related to options | $ | $ 26,000 | ||||||
Number of stock options granted (in shares) | 1,678,000 | 0 | |||||
Stock Transfers | |||||||
Class of Stock [Line Items] | |||||||
Compensation expense | $ | $ 14,800 | ||||||
Stock options | |||||||
Class of Stock [Line Items] | |||||||
Number of shares reserved for future issuance (in shares) | 6,228,000 | ||||||
Unrecognized stock based compensation expense, weighted average period of recognition | 3 years 8 months 12 days | ||||||
Dividend yield (as percent) | 0.00% | 0.00% | |||||
Restricted stock units | |||||||
Class of Stock [Line Items] | |||||||
Number of shares reserved for future issuance (in shares) | 34,700,000 | ||||||
Unrecognized stock based compensation expense, weighted average period of recognition | 1 year 10 months 24 days | ||||||
Weighted-average estimated fair value of shares granted (in dollars per share) | $ / shares | $ 27.56 | $ 18.93 | $ 7.02 | ||||
Unrecognized stock based compensation expense | $ | $ 472,600 | ||||||
Compensation expense | $ | $ 245,100 | ||||||
Restricted stock awards | |||||||
Class of Stock [Line Items] | |||||||
Unrecognized stock based compensation expense, weighted average period of recognition | 2 years 10 months 24 days | ||||||
Weighted-average estimated fair value of shares granted (in dollars per share) | $ / shares | $ 0 | $ 13.60 | $ 7.86 | ||||
Unrecognized stock based compensation expense | $ | $ 9,200 | ||||||
Employee stock purchase plan | |||||||
Class of Stock [Line Items] | |||||||
Number of shares reserved for future issuance (in shares) | 12,771,000 | ||||||
Stock purchase offering period | 6 months | ||||||
Dividend yield (as percent) | 0.00% | 0.00% | |||||
Class A Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Common stock, number of shares authorized (in shares) | 5,000,000,000 | 5,000,000,000 | 5,000,000,000 | ||||
Common stock, number of votes per share | vote | 1 | ||||||
Number of shares issued under employee stock purchase plan (in shares) | 1,400,000 | 300,000 | |||||
Class B Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Common stock, number of shares authorized (in shares) | 700,000,000 | 700,000,000 | 700,000,000 | ||||
Common stock, number of votes per share | vote | 10 | ||||||
2019 Stock Option and Incentive Plan | Class A Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Number of shares reserved for future issuance (in shares) | 60,200,000 | ||||||
Potential increase in number of shares authorized, as a percentage of total common stock outstanding | 5.00% | ||||||
Number of additional shares reserved and available for issuance (in shares) | 27,800,000 | ||||||
2019 Employee Stock Purchase Plan | Class A Common Stock | Employee stock purchase plan | |||||||
Class of Stock [Line Items] | |||||||
Number of shares reserved for future issuance (in shares) | 9,000,000 | ||||||
Potential increase in number of shares authorized, as a percentage of total common stock outstanding | 1.00% | ||||||
Number of additional shares reserved and available for issuance (in shares) | 5,600,000 | ||||||
Unrecognized stock based compensation expense, weighted average period of recognition | 2 months 12 days | ||||||
Unrecognized stock based compensation expense | $ | $ 2,200 | ||||||
Potential increase in number of shares authorized (in shares) | 6,000,000 | ||||||
Percentage of discount on market price for eligible employees | 15.00% | ||||||
Purchase price of common stock, percentage of fair market value | 85.00% |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock Reserved for Future Issuance (Details) shares in Thousands | Jan. 31, 2021shares |
Class of Stock [Line Items] | |
Number of shares reserved for future issuance (in shares) | 128,048 |
Stock options | |
Class of Stock [Line Items] | |
Number of shares reserved for future issuance (in shares) | 6,228 |
Restricted stock units outstanding | |
Class of Stock [Line Items] | |
Number of shares reserved for future issuance (in shares) | 34,700 |
Shares available for future grants | |
Class of Stock [Line Items] | |
Number of shares reserved for future issuance (in shares) | 74,349 |
Shares available for ESPP | |
Class of Stock [Line Items] | |
Number of shares reserved for future issuance (in shares) | 12,771 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Number of stock options outstanding | |||
Outstanding at beginning of period (in shares) | 8,425,000 | ||
Granted (in shares) | 1,678,000 | 0 | |
Exercised (in shares) | (3,602,000) | ||
Canceled (in shares) | (273,000) | ||
Outstanding at end of period (in shares) | 8,425,000 | ||
Stock options vested and exercisable at end of period, number of shares (in shares) | 2,765,000 | ||
Stock options vested and expected to vest at end of period, number of shares (in shares) | 6,228,000 | ||
Weighted-average exercise price per share | |||
Outstanding at beginning of period (in dollars per share) | $ 4.68 | ||
Granted (in dollars per share) | 24.31 | ||
Exercised (in dollars per share) | 3.65 | ||
Canceled (in dollars per share) | 10.52 | ||
Outstanding at end of period (in dollars per share) | 10.31 | $ 4.68 | |
Stock options vested and exercisable at end of period, weighted-average exercise price per share (in dollars per share) | 3.54 | ||
Stock options vested and expected to vest at end of period, weighted-average exercise price per share (in dollars per share) | $ 10.31 | ||
Weighted-average remaining contractual term (In years) | |||
Outstanding, weighted-average remaining contractual term | 6 years 10 months 20 days | 6 years 3 months 7 days | |
Stock options vested and exercisable, weighted-average remaining contractual term | 4 years 10 months 17 days | ||
Stock options vested and expected to vest, weighted-average remaining contractual term | 6 years 10 months 20 days | ||
Aggregate intrinsic value | |||
Outstanding, aggregate intrinsic value | $ 198,434 | $ 135,224 | |
Stock options vested and exercisable, aggregate intrinsic value | 106,787 | ||
Stock options vested and expected to vest, aggregate intrinsic value | $ 198,434 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Restricted Stock Units and Restricted Stock Awards (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Restricted stock units | |||
Number of shares | |||
Unvested at beginning of period (in shares) | 42,002 | ||
Granted (in shares) | 15,352 | ||
Released (in shares) | (18,517) | ||
Canceled (in shares) | (4,137) | ||
Unvested at end of period (in shares) | 34,700 | 42,002 | |
Weighted-average grant date fair value (per share) | |||
Unvested at beginning of period (in dollars per share) | $ 12.48 | ||
Granted (in dollars per share) | 27.56 | $ 18.93 | $ 7.02 |
Released (in dollars per share) | 12.01 | ||
Canceled (in dollars per share) | 14.81 | ||
Unvested at end of period (in dollars per share) | $ 19.13 | $ 12.48 | |
Restricted stock awards | |||
Number of shares | |||
Unvested at beginning of period (in shares) | 1,579 | ||
Granted (in shares) | 0 | ||
Released (in shares) | (480) | ||
Canceled (in shares) | 0 | ||
Unvested at end of period (in shares) | 1,099 | 1,579 | |
Weighted-average grant date fair value (per share) | |||
Unvested at beginning of period (in dollars per share) | $ 8.91 | ||
Granted (in dollars per share) | 0 | $ 13.60 | $ 7.86 |
Released (in dollars per share) | 8.96 | ||
Canceled (in dollars per share) | 0 | ||
Unvested at end of period (in dollars per share) | $ 8.89 | $ 8.91 |
Stockholders' Equity - Schedu_3
Stockholders' Equity - Schedule of Stock-Based Compensation Expense (Details) - Excluding Tender Offers and Stock Transfers - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expense | $ 227,363 | $ 426,524 | $ 8,311 |
Cost of revenue | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expense | 10,186 | 16,013 | 199 |
Research and development | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expense | 115,047 | 226,507 | 3,720 |
Sales and marketing | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expense | 59,267 | 98,797 | 970 |
General and administrative | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation expense | $ 42,863 | $ 85,207 | $ 3,422 |
Stockholders' Equity - Schedu_4
Stockholders' Equity - Schedule of Share-based Payment Award, Stock Options and ESPP, Valuation Assumptions (Details) - $ / shares | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 29, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of common stock on grant date (in dollars per share) | $ 42.17 | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 years 1 month 6 days | ||
Expected volatility (as percent) | 46.00% | ||
Expected volatility, min (as percent) | 43.00% | ||
Expected volatility, max (as percent) | 44.00% | ||
Risk-free interest rate (as percent) | 0.51% | ||
Risk-free interest rate, min (as percent) | 2.33% | ||
Risk-free interest rate, max (as percent) | 2.52% | ||
Dividend yield (as percent) | 0.00% | 0.00% | |
Fair value of common stock on grant date (in dollars per share) | $ 24.31 | ||
Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility, min (as percent) | 49.00% | 40.00% | |
Expected volatility, max (as percent) | 57.00% | 42.00% | |
Risk-free interest rate, min (as percent) | 0.12% | 1.68% | |
Risk-free interest rate, max (as percent) | 0.24% | 2.08% | |
Dividend yield (as percent) | 0.00% | 0.00% | |
Minimum | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 years 1 month 6 days | ||
Fair value of common stock on grant date (in dollars per share) | $ 11.67 | ||
Minimum | Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 months | 3 months 18 days | |
Fair value of common stock on grant date (in dollars per share) | $ 24.70 | $ 23.82 | |
Maximum | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 years 6 months | ||
Fair value of common stock on grant date (in dollars per share) | $ 19.36 | ||
Maximum | Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 months | ||
Fair value of common stock on grant date (in dollars per share) | $ 31.79 | $ 38.62 |
Interest Income and_Other Inc_3
Interest Income and Other Income, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Other Income and Expenses [Abstract] | |||
Interest income | $ 6,698 | $ 17,048 | $ 13,834 |
Unrealized gains (losses) on foreign exchange | 2,140 | (786) | (869) |
Transaction losses on foreign exchange | (730) | (1,526) | (99) |
Change in fair value of strategic investments | 20,278 | 5,599 | 3,701 |
Other non-operating income, net | 0 | 1,033 | 13 |
Interest income and other income, net | $ 28,386 | $ 21,368 | $ 16,580 |
Income Taxes - Schedule of Loss
Income Taxes - Schedule of Loss Before Income Taxes, Domestic and Foreign (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (169,376) | $ (294,259) | $ (85,175) |
Foreign | (123,427) | (273,509) | (52,887) |
Loss before income taxes | $ (292,803) | $ (567,768) | $ (138,062) |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Current: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 494 | 303 | 355 |
Foreign | 2,443 | 1,919 | 279 |
Total current | 2,937 | 2,222 | 634 |
Deferred: | |||
Federal | (754) | (120) | (200) |
State | (182) | (23) | (120) |
Foreign | (2,316) | (1,490) | 526 |
Total deferred | (3,252) | (1,633) | 206 |
Provision for (benefit from) income taxes | $ (315) | $ 589 | $ 840 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Tax at statutory federal rate | 21.00% | 21.00% | 21.00% |
State tax, net of federal benefit | 8.14% | 12.68% | 2.12% |
Stock-based compensation | 23.51% | 45.16% | (2.95%) |
Credits | 9.48% | 17.37% | 6.01% |
Foreign rate differential | (4.18%) | (7.06%) | 9.52% |
Other | (1.50%) | (1.48%) | (3.67%) |
Change in valuation allowance | (56.34%) | (87.77%) | (32.64%) |
Effective tax rate | 0.11% | (0.10%) | (0.61%) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Deferred tax assets (liabilities): | ||
Accrued liabilities | $ 17,041 | $ 10,646 |
Accounts receivable | 92 | 93 |
Operating lease liabilities | 71,290 | 51,085 |
Operating lease right-of-use assets | (52,993) | (42,919) |
Net operating losses | 553,188 | 415,236 |
Tax credits | 148,576 | 120,743 |
Goodwill and intangible assets | 13,205 | 13,176 |
Property and equipment | (10,036) | |
Property and equipment | 2,566 | |
Stock-based compensation | 39,895 | 43,182 |
Other | (388) | (1,309) |
Total gross deferred tax assets | 779,870 | 612,499 |
Valuation allowance | (775,987) | (611,027) |
Total deferred tax assets (liabilities), net | $ 3,883 | $ 1,472 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | |||
Increase in valuation allowance | $ 165,000,000 | $ 498,300,000 | $ 46,100,000 |
Unrecognized tax benefits that would impact effective tax rate | 43,300,000 | $ 37,500,000 | |
Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | 2,000,000,000 | ||
State | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | 1,500,000,000 | ||
Capital Loss Carryforward | Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforwards | 0 | ||
Capital Loss Carryforward | State | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforwards | 0 | ||
Research Tax Credit Carryforward | Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforwards | 110,400,000 | ||
Research Tax Credit Carryforward | State | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforwards | $ 81,500,000 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 37,495 | $ 20,484 | $ 18,545 |
Increase related to prior year tax provisions | 1,067 | 1 | 0 |
Decrease related to prior year tax provisions | (1,445) | (2,495) | (2,076) |
Increase related to current year tax provisions | 6,134 | 19,526 | 4,022 |
Lapse of statute of limitations | 0 | (21) | (7) |
Balance at end of year | $ 43,251 | $ 37,495 | $ 20,484 |
Net Loss per Share Attributab_3
Net Loss per Share Attributable to Slack Common Stockholders - Calculation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Numerator: | |||
Net loss attributable to Slack | $ (300,422) | $ (571,058) | $ (140,683) |
Denominator: | |||
Weighted average common shares outstanding (in shares) | 567,152 | 399,461 | 121,732 |
Net loss per share attributable to Slack common stockholders, basic and diluted (in dollars per share) | $ (0.53) | $ (1.43) | $ (1.16) |
Net Loss per Share Attributab_4
Net Loss per Share Attributable to Slack Common Stockholders - Potentially Dilutive Securities Excluded from Diluted Per Share Calculations (Details) - shares shares in Thousands | Jun. 07, 2019 | Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total antidilutive securities (in shares) | 71,194 | 52,820 | 457,296 | |
Shares related to convertible senior notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total antidilutive securities (in shares) | 27,827 | 0 | 0 | |
Convertible preferred stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total antidilutive securities (in shares) | 373,400 | 0 | 0 | 373,372 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total antidilutive securities (in shares) | 6,228 | 8,425 | 18,406 | |
Unvested early exercised stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total antidilutive securities (in shares) | 64 | 0 | 115 | |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total antidilutive securities (in shares) | 34,700 | 42,002 | 63,114 | |
Restricted stock awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total antidilutive securities (in shares) | 1,099 | 1,579 | 2,289 | |
Restricted stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total antidilutive securities (in shares) | 648 | 0 | 0 | |
Employee stock purchase plan | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total antidilutive securities (in shares) | 628 | 814 | 0 |
Net Loss per Share Attributab_5
Net Loss per Share Attributable to Slack Common Stockholders - Narrative (Details) - $ / shares shares in Thousands | Jun. 07, 2019 | Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | Apr. 09, 2020 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities converted from convertible preferred stock to common stock (in shares) | 71,194 | 52,820 | 457,296 | ||
Convertible Debt | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Conversion price (in dollars per share) | $ 31 | ||||
Initial cap price (in dollars per share) | $ 48.62 | ||||
Convertible Preferred Stock | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities converted from convertible preferred stock to common stock (in shares) | 373,400 | 0 | 0 | 373,372 |
Geographic Information (Details
Geographic Information (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total tangible long-lived assets | $ 307,103 | $ 300,170 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total tangible long-lived assets | 268,851 | 256,695 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total tangible long-lived assets | $ 38,252 | $ 43,475 |
Defined Contribution Plan (Deta
Defined Contribution Plan (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Retirement Benefits [Abstract] | |||
Employer matching contribution, percent of match | 50.00% | ||
Maximum annual amount matched by employer | $ 4,000 | ||
Employer matching contribution, vesting period | 1 year | ||
Matching contributions made by employer | $ 7,300,000 | $ 5,800,000 | $ 3,700,000 |