Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Jan. 31, 2020 | Mar. 20, 2020 | Jul. 31, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-38464 | ||
Entity Registrant Name | Smartsheet Inc. | ||
Entity Incorporation, State or Country Code | WA | ||
Entity Tax Identification Number | 20-2954357 | ||
Entity Address, Address Line One | 10500 NE 8th Street, Suite 1300 | ||
Entity Address, City or Town | Bellevue, | ||
Entity Address, State or Province | WA | ||
Entity Address, Postal Zip Code | 98004 | ||
City Area Code | (844) | ||
Local Phone Number | 324-2360 | ||
Title of 12(b) Security | Class A common stock, no par value per share | ||
Trading Symbol | SMAR | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
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 | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4.4 | ||
Entity Common Stock, Shares Outstanding | 118,833,426 | ||
Documents Incorporated by Reference | Certain sections of the registrant’s definitive proxy statement for its 2020 Annual Meeting of Shareholders (“Proxy Statement”), are incorporated herein by reference in Part II and Part III of this Annual Report on Form 10-K. The Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended January 31, 2020. | ||
Document Fiscal Year Focus | 2020 | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001366561 | ||
Current Fiscal Year End Date | --01-31 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Revenue | |||
Revenues | $ 270,882 | $ 177,722 | $ 111,253 |
Cost of revenue | |||
Total cost of revenue | 52,900 | 33,849 | 21,682 |
Gross profit | 217,982 | 143,873 | 89,571 |
Operating expenses | |||
Research and development | 95,469 | 58,841 | 37,590 |
Sales and marketing | 176,060 | 106,067 | 72,925 |
General and administrative | 50,227 | 34,049 | 28,034 |
Total operating expenses | 321,756 | 198,957 | 138,549 |
Loss from operations | (103,774) | (55,084) | (48,978) |
Interest income | 8,410 | 3,307 | 540 |
Other income (expense), net | (462) | (1,815) | (975) |
Net loss before income tax provision (benefit) | (95,826) | (53,592) | (49,413) |
Income tax provision (benefit) | 114 | 293 | (307) |
Net loss | (95,940) | (53,885) | (49,106) |
Deemed dividend | 0 | 0 | (4,558) |
Net loss attributable to common shareholders | $ (95,940) | $ (53,885) | $ (53,664) |
Net loss per share attributable to common shareholders, basic and diluted (in usd per share) | $ (0.85) | $ (0.65) | $ (2.94) |
Weighted-average shares outstanding used to compute net loss per share attributable to common shareholders, basic and diluted (in shares) | 112,991 | 83,141 | 18,273 |
Subscription | |||
Revenue | |||
Revenues | $ 244,058 | $ 157,529 | $ 100,368 |
Cost of revenue | |||
Total cost of revenue | 32,707 | 19,297 | 13,008 |
Professional services | |||
Revenue | |||
Revenues | 26,824 | 20,193 | 10,885 |
Cost of revenue | |||
Total cost of revenue | $ 20,193 | $ 14,552 | $ 8,674 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss Statement - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (95,940) | $ (53,885) | $ (49,106) |
Other comprehensive loss: | |||
Net unrealized loss on available-for-sale securities | 0 | 0 | (1) |
Comprehensive loss | $ (95,940) | $ (53,885) | $ (49,107) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 515,924 | $ 213,085 |
Short-term investments | 50,532 | 0 |
Accounts receivable, net of allowances of $2,989 and $1,234, respectively | 56,863 | 30,173 |
Prepaid expenses and other current assets | 7,643 | 3,922 |
Total current assets | 630,962 | 247,180 |
Long-term assets | ||
Restricted cash | 865 | 2,620 |
Deferred commissions | 48,255 | 29,014 |
Property and equipment, net | 26,981 | 22,540 |
Operating lease right-of-use assets | 57,590 | |
Intangible assets, net | 15,155 | 1,827 |
Goodwill | 16,497 | 5,496 |
Other long-term assets | 1,409 | 67 |
Total assets | 797,714 | 308,744 |
Current liabilities | ||
Accounts payable | 7,720 | 4,658 |
Accrued compensation and related benefits | 39,635 | 25,557 |
Other accrued liabilities | 12,428 | 6,544 |
Operating lease liabilities, current | 13,020 | |
Finance lease liabilities, current | 2,465 | |
Finance lease liabilities, current | 3,768 | |
Deferred revenue | 157,972 | 95,766 |
Total current liabilities | 233,240 | 136,293 |
Operating lease liabilities, non-current | 47,913 | |
Finance lease liabilities, non-current | 1,664 | |
Finance lease liabilities, non-current | 2,164 | |
Deferred revenue, non-current | 837 | 367 |
Other long-term liabilities | 0 | 2,928 |
Total liabilities | 283,654 | 141,752 |
Commitments and contingencies (Note 13) | ||
Shareholders’ equity: | ||
Preferred stock | 0 | 0 |
Additional paid-in capital | 770,518 | 327,510 |
Accumulated deficit | (256,458) | (160,518) |
Total shareholders’ equity | 514,060 | 166,992 |
Total liabilities and shareholders’ equity | 797,714 | 308,744 |
Common Class A | ||
Shareholders’ equity: | ||
Common stock | 0 | 0 |
Common Class B | ||
Shareholders’ equity: | ||
Common stock | $ 0 | $ 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Accounts receivable, allowances | $ 2,989 | $ 1,234 |
Preferred stock authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common Class A | ||
Common stock authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock issued (in shares) | 118,194,159 | 48,003,701 |
Common stock outstanding (in shares) | 118,194,159 | 48,003,701 |
Common Class B | ||
Common stock authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock issued (in shares) | 0 | 56,967,742 |
Common stock outstanding (in shares) | 0 | 56,967,742 |
Consolidated Statements of Chan
Consolidated Statements of Change in Convertible Preferred Stock and Shareholders' Equity (Deficit) Statement - USD ($) $ in Thousands | Total | Common Stock (Class A and B) | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
Beginning balance, convertible preferred stock (in shares) at Jan. 31, 2017 | 61,284,703 | ||||
Beginning balance, convertible preferred stock at Jan. 31, 2017 | $ 60,260 | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Issuance of convertible preferred stock (in shares) | 6,334,674 | ||||
Issuance of convertible preferred stock | $ 52,427 | ||||
Ending balance, convertible preferred stock (in shares) at Jan. 31, 2018 | 67,619,377 | ||||
Ending balance, convertible preferred stock at Jan. 31, 2018 | $ 112,687 | ||||
Beginning balance, common stock (in shares) at Jan. 31, 2017 | 16,278,895 | ||||
Beginning balance at Jan. 31, 2017 | (52,743) | $ 0 | $ 4,783 | $ (57,527) | $ 1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock option exercises (in shares) | 4,001,846 | ||||
Stock option exercises | 2,645 | 2,645 | |||
Share-based compensation expense | 18,464 | 18,464 | |||
Comprehensive loss | (49,107) | (49,106) | (1) | ||
Ending balance, common stock (in shares) at Jan. 31, 2018 | 20,280,741 | ||||
Ending balance at Jan. 31, 2018 | $ (80,741) | $ 0 | 25,892 | (106,633) | 0 |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Conversion of convertible preferred stock to common stock in connection with initial public offering (in shares) | (67,619,377) | ||||
Conversion of convertible preferred stock to common stock in connection with initial public offering | $ (112,687) | ||||
Ending balance, convertible preferred stock (in shares) at Jan. 31, 2019 | 0 | ||||
Ending balance, convertible preferred stock at Jan. 31, 2019 | $ 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation expense | 16,091 | 16,091 | |||
Comprehensive loss | (53,885) | (53,885) | |||
Issuance of common stock under employee stock plans (in shares) | 4,331,279 | ||||
Issuance of common stock under employee stock plans | 10,221 | 10,221 | |||
Taxes paid related to net share settlement of equity awards | (380) | (380) | |||
Issuance of common stock upon net exercise of warrant (in shares) | 134,603 | ||||
Issuance of common stock upon net exercise of warrant | 2,598 | 2,598 | |||
Issuance of common stock in connection with initial public offering, net of underwriting discounts and issuance costs (in shares) | 11,745,088 | ||||
Issuance of common stock in connection with initial public offering, net of underwriting discounts and issuance costs | 160,401 | 160,401 | |||
Conversion of convertible preferred stock to common stock in connection with initial public offering (in shares) | 68,479,732 | ||||
Conversion of convertible preferred stock to common stock in connection with initial public offering | 112,687 | 112,687 | |||
Ending balance, common stock (in shares) at Jan. 31, 2019 | 104,971,443 | ||||
Ending balance at Jan. 31, 2019 | $ 166,992 | $ 0 | 327,510 | (160,518) | 0 |
Ending balance, convertible preferred stock (in shares) at Jan. 31, 2020 | 0 | ||||
Ending balance, convertible preferred stock at Jan. 31, 2020 | $ 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation expense | 38,507 | 38,507 | |||
Comprehensive loss | (95,940) | (95,940) | |||
Issuance of common stock under employee stock plans (in shares) | 4,197,716 | ||||
Issuance of common stock under employee stock plans | 25,519 | 25,519 | |||
Issuance of common stock in connection with initial public offering, net of underwriting discounts and issuance costs (in shares) | 9,025,000 | ||||
Issuance of common stock in connection with initial public offering, net of underwriting discounts and issuance costs | 378,982 | 378,982 | |||
Ending balance, common stock (in shares) at Jan. 31, 2020 | 118,194,159 | ||||
Ending balance at Jan. 31, 2020 | $ 514,060 | $ 0 | $ 770,518 | $ (256,458) | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Cash flows from operating activities | |||
Net loss | $ (95,940) | $ (53,885) | $ (49,106) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Share-based compensation expense | 37,493 | 15,903 | 18,464 |
Remeasurement of convertible preferred stock warrant liability | 0 | 1,326 | 795 |
Depreciation of property and equipment | 10,687 | 7,194 | 4,019 |
Amortization of deferred commission costs | 19,806 | 10,770 | 4,989 |
Unrealized foreign currency loss | 82 | 37 | 0 |
Gain on disposal of assets | 0 | 0 | 2 |
Amortization of intangible assets | 2,762 | 510 | 57 |
Non-cash operating lease costs | 7,971 | ||
Amortization of premiums, accretion of discounts and gain on investments | 0 | 0 | 26 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (25,965) | (15,265) | (9,455) |
Prepaid expenses and other current assets | (3,909) | 481 | (1,856) |
Operating lease right-of-use assets | (12,173) | ||
Other long-term assets | (339) | 207 | (1,022) |
Accounts payable | 3,593 | 2,031 | 704 |
Other accrued liabilities | 5,840 | 3,424 | 2,014 |
Accrued compensation and related benefits | 11,994 | 8,732 | 6,466 |
Deferred commissions | (39,046) | (24,493) | (14,704) |
Other long-term liabilities | (1,003) | 1,322 | 457 |
Deferred revenue | 61,646 | 38,851 | 24,569 |
Operating lease liabilities | 5,631 | ||
Net cash used in operating activities | (10,870) | (2,855) | (13,581) |
Cash flows from investing activities | |||
Purchases of short-term investments | (100,532) | 0 | 0 |
Purchases of long-term investments | (1,000) | 0 | 0 |
Proceeds from maturity of investments | 50,000 | 0 | 9,235 |
Proceeds from sales of investments | 0 | 0 | 900 |
Purchases of property and equipment | (5,153) | (5,767) | (6,006) |
Proceeds from sale of property and equipment | 0 | 0 | 1 |
Capitalized internal-use software development costs | (6,699) | (3,017) | (3,350) |
Purchases of intangible assets | 0 | 0 | (125) |
Payments for business acquisition, net of cash acquired | (26,659) | (5,000) | (1,464) |
Net cash used in investing activities | (90,043) | (13,784) | (809) |
Cash flows from financing activities | |||
Proceeds from initial public offering of common stock, net of underwriters' discounts and commissions | 0 | 163,844 | 0 |
Proceeds from follow-on offering of common stock, net of underwriters' discounts and commissions | 379,828 | 0 | 0 |
Payments on principal of finance leases | (4,167) | ||
Payments on principal of finance leases | (3,253) | (2,326) | |
Payments of deferred offering costs | (798) | (2,603) | (829) |
Proceeds from issuance of convertible preferred stock | 0 | 0 | 52,427 |
Proceeds from exercise of stock options | 15,905 | 6,649 | 2,164 |
Taxes paid related to net share settlement of restricted stock units | 0 | (380) | 0 |
Proceeds from Employee Stock Purchase Plan | 11,254 | 7,064 | 0 |
Net cash provided by financing activities | 402,022 | 171,321 | 51,436 |
Effects of changes in foreign currency exchange rates on cash, cash equivalents, and restricted cash | (25) | (36) | 0 |
Net increase in cash, cash equivalents, and restricted cash | 301,084 | 154,646 | 37,046 |
Cash, cash equivalents, and restricted cash at beginning of period | 215,705 | 61,059 | 24,013 |
Cash, cash equivalents, and restricted cash at end of period | 516,789 | 215,705 | 61,059 |
Supplemental disclosures | |||
Cash paid for interest | 243 | 324 | 312 |
Cash paid for income taxes | 106 | 8 | 0 |
Purchases of fixed assets under finance leases | 2,364 | 2,639 | 3,130 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 12,173 | ||
Accrued purchases of property and equipment (including internal-use software) | 1,155 | 992 | 181 |
Deemed dividends on convertible preferred stock | 0 | 0 | (4,558) |
Deferred offering costs, accrued but not yet paid | 60 | 12 | 648 |
Share-based compensation capitalized in internal-use software development costs | $ 1,014 | $ 189 | $ 0 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 12 Months Ended |
Jan. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview and Basis of Presentation | Overview and Basis of Presentation Description of business Smartsheet Inc. (the “Company,” “we,” “our”) was incorporated in the State of Washington in 2005, and is headquartered in Bellevue, Washington. The Company is a leading cloud-based platform for work execution, enabling teams and organizations to plan, capture, manage, automate, and report on work at scale. Customers access their accounts online via a web-based interface or a mobile application. Some customers also purchase the Company ’ s professional services, which primarily consist of consulting and training services. Collapse of dual class common stock structure On September 19, 2019, all outstanding shares of the Company’s Class B common stock automatically converted into the same number of shares of the Company's Class A common stock, pursuant to the terms of the Company's amended and restated articles of incorporation (the “Articles”). No additional shares of Class B common stock will be issued following this conversion. The conversion occurred pursuant to the Articles, which provides that each share of Class B common stock would convert automatically, without further action by the Company, into one share of Class A common stock at the close of business on the date on which the outstanding shares of Class B common stock represented less than 15% of the aggregate number of shares of Class A common stock and Class B common stock then outstanding. In accordance with the Articles, the shares of Class B common stock that converted as a result of the automatic conversion were retired and will not be reissued by the Company. Follow-on offering On June 14, 2019, we completed a public equity offering in which we issued and sold 9,025,000 shares of Class A common stock, inclusive of the exercised over-allotment option, at a public offering price of $43.50 per share. In addition, 5,810,000 shares of the Company’s common stock were sold by selling shareholders of the Company, inclusive of the over-allotment, as part of this offering. We received net proceeds of $379.0 million after deducting underwriting discounts and commissions of $12.8 million and other issuance costs of $0.9 million . We did not receive any proceeds from the sale of common stock by selling shareholders. Initial public offering On May 1, 2018, we completed our initial public offering (“IPO”) in which we issued and sold 11,745,088 shares of Class A common stock, inclusive of the over-allotment, at a public offering price of $15.00 per share. We received net proceeds of $160.4 million after deducting underwriting discounts and commissions of $12.3 million and other issuance costs of $3.4 million . Immediately prior to the closing of our IPO, all shares of our convertible preferred stock automatically converted into an aggregate of 68.5 million shares of Class B common stock. In addition, we authorized for future issuance a total of 500 million shares of each Class A and Class B common stock, and 10 million shares of preferred stock. Basis of presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in th e United States of America (“GAAP”) , and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding financial reporting . The Company’s fiscal year ends on January 31. The consolidated financial statements include the results of Smartsheet Inc. and its wholly owned subsidiaries, which are located in the United States, the United Kingdom, and Australia. All intercompany balances and transactions have been eliminated upon consolidation. In the opinion of management, the information contained herein reflects all adjustments necessary for a fair presentation of our consolidated financial statements. All such adjustments are of a normal, recurring nature. Use of estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. The Company bases its estimates on historical experience and on other assumptions that its management believes are reasonable under the circumstances. Actual results could differ from those estimates. The Company’s most significant estimates and judgments involve revenue recognition with respect to the allocation of transaction consideration for the Company’s offerings; determination of the amortization period for capitalized sales commission costs; capitalization of internal-use software development costs; valuation of assets and liabilities acquired as part of business combinations; and incremental borrowing rate estimates for operating leases, among others. In December 2019, the novel COVID-19 coronavirus (“COVID-19”) was reported in China and in March 2020 the World Health Organization declared it a pandemic. The extent of the impact of COVID-19 on our operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, impact on our customers and our sales cycles, and impact on our employees, all of which are uncertain and cannot be predicted. As of the date of issuance of the financial statements, we are not aware of any specific event or circumstance that would require us to update our estimates, judgments or revise the carrying value of our assets or liabilities. These estimates may change, as new events occur and additional information is obtained, and are recognized in the consolidated financial statements as soon as they become known. Actual results could differ from those estimates and any such differences may be material to our financial statements. Liquidity The Company continues to be subject to the risks and challenges associated with companies at a similar stage of development, including the ability to raise additional capital to support future growth. Since inception through January 31, 2020 , the Company has incurred losses from operations and accumulated a deficit of $256.5 million . Historically, the Company has financed its operations primarily through the sale of equity securities and customer payments. The Company believes its existing cash will be sufficient to meet its working capital and capital expenditure needs for at least the next 12 months. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Segment information The Company operates as one operating segment. The Company’s chief operating decision maker is its Chief Executive Officer, who reviews consolidated financial information for purposes of making operating decisions, assessing financial performance, and allocating resources. Revenue recognition The Company derives its revenue primarily from subscription services and professional services. Revenue is recognized when control of these services is transferred to the Company ’ s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services, net of any sales taxes. The Company determines revenue recognition through the following steps: • identification of the contract, or contracts, with a 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 revenue when, or as, the Company satisfies a performance obligation. Subscription revenue Subscription revenue primarily consists of fees from customers for access to the Company’s cloud-based platform . S ubscription revenue is recognized on a ratable basis over the subscription contract term, beginning on the date the access to the Company ’ s platform is provided, as no implementation work is required, if consideration the Company is entitled to receive is probable of collection. S ubscription contracts generally have terms of one year or one month, are billed in advance, and are non-cancelable. The subscription arrangements do not allow the customer the contractual right to take possession of the platform; as such, the arrangements are considered to be service contracts. Certain of the Company ’ s subscription contracts contain performance guarantees related to service continuity. To date, refunds related to such guarantees have been immaterial in all periods presented. Professional services revenue Professional services revenue primarily includes revenue recognized from fees for consulting and training services. The Company’s consulting services consist of platform configuration and use case optimization, and are primarily invoiced on a time and materials basis, monthly in arrears. Services revenue is recognized over time, as service hours are delivered. Smaller consulting engagements are, on occasion, provided for a fixed fee. These smaller consulting arrangements are typically of short duration (less than three months). In these cases, revenue is recognized over time, based on the proportion of hours of work performed, compared to the total hours expected to complete the engagement. Configuration and use case optimization services do not result in significant customization or modification of the software platform or user interface. Training services are billed in advance, on a fixed-fee basis, and revenue is recognized after the training program is delivered, or after the customer’s right to receive training services expires. Associated out-of-pocket travel expenses related to the delivery of professional services are typically reimbursed by the customer. Out-of-pocket expense reimbursements are recognized as revenue at the point in time, or as the distinct performance obligation to which they relate is delivered. Out-of-pocket expenses are recognized as cost of professional services as incurred. On occasion, the Company sells its subscriptions to third-party resellers. The price at which the Company sells to the reseller is typically discounted, as compared to the price at which the Company would sell to an end customer, in order to enable the reseller to realize a margin on the eventual sale to the end customer. As the Company retains a fixed amount of the contract from the reseller, and does not have visibility into the pricing provided by the reseller to the end customer, the revenue is recorded net of any reseller margin. Contracts with multiple performance obligations Some of the Company’s contracts with customers contain multiple performance obligations. The Company accounts for individual performance obligations separately, as they have been determined to be distinct, i.e., the services are separately identifiable from other items in the arrangement and the customer can benefit from them on its own or with other resources that are readily available to the customer. The transaction price is allocated to the distinct performance obligations on a relative stand-alone selling price basis. Stand-alone selling prices are determined based on the prices at which the Company separately sells subscription, consulting, and training services, and based on t he Company’s overall pricing objectives, taking into consideration market conditions, value of t he Company’s contracts, the types of offerings sold, customer demographics, and other factors. Accounts receivable Accounts receivable are primarily comprised of trade receivables that are recorded at the invoice amount, net of an allowance for doubtful accounts. Subscription fees billed in advance of the related subscription term represent contract liabilities and are presented as accounts receivable and deferred revenues upon establishment of the unconditional right to invoice, typically upon signing of the non-cancelable service agreement. Our typical payment terms provide for customer payment within 30 days of the date of the contract. The allowance for doubtful accounts is based on the Company’s assessment of the collectability of accounts by considering the composition of the accounts receivable aging and historical trends on collectability. Amounts deemed uncollectible are recorded to the allowance for doubtful accounts in the consolidated balance sheets with an offsetting decrease in related deferred revenue and a reduction of revenue or charge to general and administrative expense in the statements of operations . During the year ended January 31, 2020 , activity related to the Company’s provision for doubtful accounts was as follows (in thousands): Balance at January 31, 2018 $ 457 Write-offs (849 ) Additions, net 1,626 Balance at January 31, 2019 1,234 Write-offs (1,629 ) Additions, net 3,384 Balance at January 31, 2020 $ 2,989 Activity related to the Company’s provision for doubtful accounts during the year ended January 31, 2018 was as follows (in thousands): Balance at January 31, 2017 $ 104 Additions, net of write-offs 353 Balance at January 31, 2018 $ 457 Deferred revenue Deferred revenue is recorded for subscription services contracts upon establishment of unconditional right to payment under a non-cancelable contract before transferring the related services to the customer. Deferred revenue for such services is amortized into revenue over time, as those subscription services are delivered. Similarly, the Company records deferred revenue for fixed-fee professional services upon establishment of an unconditional right to payment under a non-cancelable contract. Deferred revenue for training services is recognized as revenue upon delivery of training services or upon expiration of customer’s right to receive such services. Deferred revenue for consulting services is recognized as hours of service are delivered to the customer. Deferred commissions The majority of sales commissions earned by the Company ’s sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions are paid on initial contracts and on any upsell contracts with a customer. No sales commissions are paid on customer renewals. Sales commissions are deferred and then amortized on a straight-line basis over a period of benefit that the Company has determined to be three years. The Company determined the period of benefit by taking into consideration its customer contracts, expected customer life, the expected life of its technology, and other factors. Amortization expense is included in sales and marketing expenses in the accompanying statements of operations. Overhead allocations The Company allocates shared costs, such as facilities (including rent, utilities, and depreciation on equipment shared by all departments), and information technology costs to all departments based on headcount. As such, allocated shared costs are reflected in each cost of revenue and operating expense category. Cash, cash equivalents, and short-term investments The Company considers all highly liquid investments with an original maturity of three months or less from date of purchase to be cash equivalents. Investments with terms greater than three months but less than or equal to twelve months are included in short-term investments. Interest income earned on cash, cash equivalents, and short-term investments is recorded in interest income in the accompanying statements of operations. Restricted cash Restricted cash as of January 31, 2020 primarily consisted of $0.9 million related to security deposits for the Company’s Bellevue, Boston, London, and Edinburgh leases. Restricted cash as of January 31, 2019 consisted of $1.8 million related to collateral for irrevocable letters of credit (entered into during the year ended January 31, 2019) for additional office space in Bellevue, and $0.8 million primarily related to security deposits for the Company’s Bellevue, Boston, London, and Edinburgh leases. Restricted cash as of January 31, 2018 consisted of $2.4 million related to collateral for irrevocable letters of credit and $0.5 million related to security deposits. The letters of credit that were outstanding as of January 31, 2018 were still in effect as of January 31, 2020; however, the requirement to maintain $2.4 million in collateral for those letters of credit was removed during the year ended January 31, 2019, and the restricted cash balance was reduced by this amount. Cash as reported on the consolidated statements of cash flows includes the aggregate amounts of cash and cash equivalents and restricted cash as shown on the consolidated balance sheets. Cash as reported on the consolidated statements of cash flows consists of the following (in thousands): January 31, 2020 2019 2018 Cash and cash equivalents $ 515,924 $ 213,085 $ 58,158 Restricted cash 865 2,620 2,901 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 516,789 $ 215,705 $ 61,059 Property and equipment Property and equipment are recorded at cost, net of accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the following estimated useful lives: Computer equipment 3 years Computer software 3 years Furniture and fixtures 5-7 years Leasehold improvements are amortized over the shorter of the expected useful lives of the assets or the related lease term. Maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. Internal-use software development costs The Company capitalizes certain qualifying costs incurred during the application development stage in connection with the development of internal-use software. Costs related to preliminary project activities and post-implementation activities are expensed in research and development (“R&D”) as incurred. R&D expenses consist primarily of employee-related costs, hardware- and software-related costs, costs of outside services used to supplement our internal staff, and overhead allocations. Internal-use software costs of $8.1 million were capitalized in the year ended January 31, 2020 , of which $5.8 million related to costs incurred during the application development stage of software development for the Company’s platform to which subscriptions are sold. Internal-use software costs of $3.5 million were capitalized in the year ended January 31, 2019 , of which $1.5 million related to costs incurred during the application development stage of software development for the Company’s platform to which subscriptions are sold. Capitalized software development costs are included within property and equipment, net on the balance sheets, and are amortized over the estimated useful life of the software, which is typically three years . The related amortization expense is recognized in the consolidated statements of comprehensive loss within the function that receives the benefit of the developed software. Amortization expense of capitalized internal-use software costs totaled $2.3 million , $1.0 million and $0.2 million for the years ended January 31, 2020 , 2019 and 2018, respectively. The Company evaluates the useful lives of these assets and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Business combinations When we acquire a business, the purchase price is allocated to the net tangible and identifiable intangible assets acquired based on their estimated fair values. Any residual purchase price is recorded as goodwill. The allocation of the purchase price requires management to make significant estimates in determining the fair values of assets acquired and liabilities assumed, especially with respect to intangible assets. These estimates can include, but are not limited to, the cash flows that an asset is expected to generate in the future, the appropriate weighted-average cost of capital, and the cost savings expected to be derived from acquiring an asset. These estimates are inherently uncertain and unpredictable. During the measurement period, which may be up to one year from the acquisition date, adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed may be recorded, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statements of operations. Goodwill & Acquired Intangible Assets The Company evaluates goodwill for impairment at the reporting unit level on an annual basis (September 1), or whenever events or changes in circumstances indicate that impairment may exist. When evaluating goodwill for impairment, the Company may first perform a qualitative assessment to determine whether it is more likely than not that a reporting unit is impaired. If the Company does not perform a qualitative assessment, or if the Company determines that it is not more likely than not that the fair value of the reporting unit exceeds its carrying amount, the Company calculates the estimated fair value of the reporting unit. Fair value is the price a willing buyer would pay for the reporting unit and is typically calculated using a discounted cash flow model. If the carrying amount of the reporting unit exceeds the estimated fair value, an impairment charge is recorded to reduce the carrying value to the estimated fair value. Acquired intangible assets consist of identifiable intangible assets, primarily software technology and customer relationships, resulting from our acquisitions. Intangible assets are recorded at fair value on the date of acquisition and amortized over their estimated useful lives. Impairment of long-lived assets Long-lived assets, such as property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Recoverability of an asset group is measured by comparing the carrying amount to the estimated undiscounted future cash flows expected to be generated. If the carrying amount exceeds the undiscounted cash flows, the assets are determined to be impaired and an impairment charge is recognized as the amount by which the carrying amount exceeds its fair value. No impairments of long-lived assets were recorded during any of the periods presented. Leases We determine if an arrangement is a lease at inception, and leases are classified at commencement as either operating or finance leases. Right-of-use (“ROU”) assets and lease liabilities are recognized at commencement date based on the present value of the future minimum lease payments over the lease term. ROU assets also include any lease payments made. Operating lease ROU assets are presented separately in long-term assets and finance lease ROU assets are included in property and equipment, net on our consolidated balance sheets. As our operating leases do not provide an implicit rate, we use our incremental borrowing rate based on information available at the commencement date in determining the present value of future payments. This rate is an estimate of the collateralized borrowing rate we would incur on our future lease payments over a similar term based on the information available at commencement date. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. At January 31, 2020 , we did not include any options to extend leases in our lease terms as we were not reasonably certain to exercise them. The Company’s lease agreements do not contain residual value guarantees or covenants. We utilize certain practical expedients and policy elections available under the lease accounting standard. Leases with a term of one year or less are not recognized on our consolidated balance sheets; we recognize lease expense for these leases on a straight-line basis over the lease term. Additionally, we have elected to include non-lease components with lease components for contracts containing real estate leases for the purpose of calculating lease right-of-use assets and liabilities, to the extent that they are fixed. Non-lease components that are not fixed are expensed as incurred as variable lease payments. Our real estate operating leases typically include non-lease components such as common-area maintenance costs. ROU assets are subject to evaluation for impairment or disposal on a basis consistent with other long-lived assets. Self-funded health insurance In December 2017, the Company elected to partially self-fund its health insurance plan. To reduce its risk related to high-dollar claims, the Company maintains individual and aggregate stop-loss insurance. The Company estimates its exposure for claims incurred but not paid at the end of each reporting period and uses historical claims data to estimate its self-insurance liability. As of January 31, 2020 and 2019 , the Company’s net self-insurance reserve estimate was $0.9 million and $0.8 million , respectively, included in other accrued liabilities in the accompanying consolidated balance sheets. Advertising expenses Advertising and marketing costs are expensed as incurred, and are included in sales and marketing expense in the statements of operations. Advertising and marketing expenses, inclusive of lead generation costs, we re $35.5 million , $20.6 million , and $14.8 million for the years ended January 31, 2020 , 2019 , and 2018 , respec tively. Deferred offering costs Deferred offering costs of $3.4 million , primarily consisting of legal, accounting, and other fees related to the IPO, were offset against proceeds upon the closing of the IPO on May 1, 2018. Deferred offering costs of $0.9 million were offset against proceeds upon the closing of the follow-on offering on June 14, 2019. Convertible preferred stock warrant liability The Company classified its warrant to purchase convertible preferred stock as a liability. The Company adjusted the carrying value of the warrant liability to fair value at the end of each reporting period utilizing the Black-Scholes option pricing model. The convertible preferred stock warrant liability was included on the Company’s consolidated balance sheets and its revaluation was recorded as an expense in other income (expense), net for the fiscal years ended 2018 and 2019. Upon the closing of the IPO on May 1, 2018, the related warrant liability was reclassified to additional paid-in capital. Share-based compensation The Company measures and recognizes compensation expense for all share-based awards granted to employees and directors, based on the estimated fair value of the award on the date of grant. Expense is recognized on a straight-line basis over the vesting period of the award based on the estimated portion of the award that is expected to vest. The Company uses the Black-Scholes option pricing model to measure the fair value of stock option awards when they are granted. The Company makes several estimates in determining share-based compensation and these estimates generally require significant analysis and judgment to develop. Income taxes Income taxes are accounted for using the asset and liability method. Under this method, the Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. The Company records a valuation allowance to reduce deferred tax assets to an amount for which realization is more likely than not. The Company evaluates and accounts for uncertain tax positions using a two-step approach. The first step is to evaluate if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained in an audit. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company reflects interest and penalties related to income tax liabilities as a component of income tax expense. Concentrations of risk and significant customers Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash, cash equivalents, short-term investments, and accounts receivable. The Company maintains its cash accounts with financial institutions where deposits, at times, exceed the Federal Deposit Insurance Corporation (“FDIC”) limits. No individual customers represented more than 10% of accounts receivable as of the years ended January 31, 2020 or 2019 . No individual customers represented more than 10% of revenue for the years ended January 31, 2020 , 2019 , or 2018. Net loss per share Prior to the IPO, holders of t he Company’s convertible preferred stock participated in dividends with holders of t he Company’s common stock, but they were not contractually required to share in net losses. Accordingly, during those periods of income, the Company was required to use the two-class method of calculating earnings per share. The two-class method requires that earnings per share be calculated separately for each class of security. As t he Company incurred losses during the periods presented, t he Company used the methods described below to calculate net loss per share. The Company calculates basic net loss per share by dividing net loss attributable to common shareholders by the weighted-average number of the Company’s common stock shares outstanding during the respective period. Net loss attributable to common shareholders is net loss minus convertible preferred stock dividends declared, of which there were none during the periods presented. The Company calculates diluted net loss per share using the treasury stock and if-converted methods, which consider the potential impacts of outstanding stock options, restricted stock units (“RSUs”), shares issuable pursuant to our Employee Stock Purchase Plan (“ESPP”), warrants, and convertible preferred stock. Under these methods, the numerator and denominator of the net loss per share calculation are adjusted for these securities if the impact of doing so increases net loss per share. During the periods presented, the impact is to decrease net loss per share and therefore the Company is precluded from adjusting its calculation for these securities. As a result, diluted net loss per share is calculated using the same formula as basic net loss per share. Recently adopted accounting pronouncements We adopted Accounting Standard Update (“ASU”) 2016-02, Leases - Topic 842 (“ASC 842”) on February 1, 2019 using the optional transition method described in ASU 2018-11, Leases - Targeted Improvements . Under the optional transition method, we recognized the cumulative effect of initially applying the guidance as an adjustment to the operating lease ROU assets and operating lease liabilities on our consolidated balance sheet on February 1, 2019 without retrospective application to comparative periods. The new lease standard requires lessees to recognize ROU assets and lease liabilities on the balance sheet for operating leases, and also requires additional quantitative and qualitative disclosures to enable users of the financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. In adopting ASC 842, we utilized certain practical expedients available under the standard. These practical expedients include waiving reassessment of conclusions reached under the previous lease standard as to whether contracts contain leases and not recording ROU assets or lease liabilities for leases with terms of 12 months or less. As a result of implementing this guidance, we recognized a $53.4 million net operating ROU asset and a $55.3 million operating lease liability, inclusive of $1.9 million previously classified as deferred rent, in our consolidated balance sheet as of February 1, 2019. The adoption of ASC 842 did not have an impact on our accumulated deficit on our consolidated balance sheet as of February 1, 2019 and is not expected to have a material impact on our consolidated statements of operations and comprehensive loss. See Note 12, Leases, for additional information regarding our leases. Recent accounting pronouncements not yet adopted In June 2016, the FASB issued ASU 2016-13, including subsequent amendments, Measurement of Credit Losses on Financial Instruments (Topic 326) (“ASU 2016-13”) and has modified the standard thereafter, which modifies the accounting methodology for most financial instruments. The guidance establishes a new “expected loss model” that requires entities to estimate current expected credit losses on financial instruments by using all practical and relevant information. Additionally, any expected credit losses are to be reflected as allowances rather than reductions in the amortized cost of available-for-sale debt securities. This guidance is effective for interim and annual periods beginning after December 15, 2019, and early adoption is permitted. The Company does not expect the adoption of this standard to have a material effect on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other-Internal-Use Software (“ASU 2018-15”) , which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This guidance is effective for interim and annual reporting periods beginning after December 15, 2019, and early adoption is permitted. The Company does not expect adoption of this ASU to have a material effect on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) (“ASU 2019-12”), which simplifies certain aspects of accounting for income taxes. The guidance is effective for interim and annual reporting periods beginning after December 15, 2020, and early adoption is permitted. The Company does not expect adoption of this ASU to have a material effect on the Company’s consolidated financial statements. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Jan. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers During the years ended January 31, 2020 , 2019 , and 2018 the Company recognized $93.0 million , $55.3 million , and $32.0 million of subscription revenue, respectively, and $2.1 million , $1.5 million , and $0.6 million of professional services revenue, respectively, which were included in the deferred revenue balance as of January 31, 2019 , 2018 , and 2017 , respectively. As of January 31, 2020 , including amounts already invoiced and amounts contracted but not yet invoiced, approximately $166.9 million of revenue was expected to be recognized from remaining performance obligations, of which $163.0 million related to subscription services and $3.9 million related to professional services. Approximately 96% of revenue related to remaining performance obligations is expected to be recognized in the next 12 months . Deferred commissions were $48.3 million as of January 31, 2020 and $29.0 million as of January 31, 2019 . Amortization expense for deferred commissions was $19.8 million, $10.8 million , and $ 5.0 million for the years ended January 31, 2020 , 2019 , and 2018 , respectively. Deferred commissions are amortized over a period of three years and the amortization expense is recorded in sales and marketing on the Company’s consolidated statements of operations. |
Deferred Commissions
Deferred Commissions | 12 Months Ended |
Jan. 31, 2020 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Deferred Commissions | Revenue from Contracts with Customers During the years ended January 31, 2020 , 2019 , and 2018 the Company recognized $93.0 million , $55.3 million , and $32.0 million of subscription revenue, respectively, and $2.1 million , $1.5 million , and $0.6 million of professional services revenue, respectively, which were included in the deferred revenue balance as of January 31, 2019 , 2018 , and 2017 , respectively. As of January 31, 2020 , including amounts already invoiced and amounts contracted but not yet invoiced, approximately $166.9 million of revenue was expected to be recognized from remaining performance obligations, of which $163.0 million related to subscription services and $3.9 million related to professional services. Approximately 96% of revenue related to remaining performance obligations is expected to be recognized in the next 12 months . Deferred commissions were $48.3 million as of January 31, 2020 and $29.0 million as of January 31, 2019 . Amortization expense for deferred commissions was $19.8 million, $10.8 million , and $ 5.0 million for the years ended January 31, 2020 , 2019 , and 2018 , respectively. Deferred commissions are amortized over a period of three years and the amortization expense is recorded in sales and marketing on the Company’s consolidated statements of operations. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Jan. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share The following tables present calculations for basic and diluted net loss per share (in thousands, except per share data): Year Ended January 31, 2020 2019 2018 Numerator: Net loss attributable to common shareholders $ (95,940 ) $ (53,885 ) $ (53,664 ) Denominator: Weighted-average common shares outstanding 112,991 83,141 18,273 Net loss per share, basic and diluted $ (0.85 ) $ (0.65 ) $ (2.94 ) The following outstanding shares of common stock equivalents (in thousands) as of the periods presented were excluded from the computation of diluted net loss per share attributable to common shareholders for the periods presented because the impact of including them would have been anti-dilutive: January 31, 2020 2019 2018 Convertible preferred shares (as converted) — — 68,480 Convertible preferred stock warrant — — 137 Shares subject to outstanding common stock awards 12,215 13,297 13,355 Shares issuable pursuant to the Employee Stock Purchase Plan 165 134 — Total potentially dilutive shares 12,380 13,431 81,972 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and liabilities recorded at fair value in the consolidated financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The lowest level of significant input determines the placement of the fair value measurement within the following hierarchical levels: • Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2: Observable inputs, other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3: Unobservable inputs that are supported by little or no market activity. The following tables present information about the Company’s financial assets and liabilities that are measured at fair value and indicates the fair value hierarchy of the valuation inputs used (in thousands) as of: January 31, 2020 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 279,160 $ — $ — $ 279,160 Certificates of deposit — 50,585 — 50,585 Short-term investments: Certificates of deposit — 50,532 — 50,532 Total assets $ 279,160 $ 101,117 $ — $ 380,277 January 31, 2019 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 203,746 $ — $ — $ 203,746 Restricted cash: Certificates of deposit — 1,775 — 1,775 Total assets $ 203,746 $ 1,775 $ — $ 205,521 The carrying amounts of certain financial instruments, including cash held in banks, accounts receivable, and accounts payable, approximate fair value due to their short-term maturities and are excluded from the fair value tables above. It is the Company’s policy to recognize transfers of assets and liabilities between levels of the fair value hierarchy at the end of a reporting period. The Company does not transfer out of Level 3 and into Level 2 until observable inputs become available and reliable. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Jan. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net As of the dates specified below, property and equipment (in thousands) consisted of the following: January 31, 2020 2019 Computer equipment $ 22,513 $ 17,536 Computer software, purchased and developed 14,673 6,958 Furniture and fixtures 6,712 5,410 Leasehold improvements 4,501 4,158 Total property and equipment 48,399 34,062 Less: accumulated depreciation (21,418 ) (11,522 ) Total property and equipment, net $ 26,981 $ 22,540 Depreciation expense was $10.7 million , $7.2 million , and $4.0 million for the years ended January 31, 2020 , 2019 , and 2018 , respectively. Property and equipment includes $14.2 million and $11.8 million of data center equipment purchased under finance leases at January 31, 2020 and 2019 , respectively. Accumulated depreciation related to these leased assets was $10.2 million and $6.1 million at January 31, 2020 and 2019 , respectively. Depreciation expense on finance leases, which is included in total depreciation expense described immediately above, was $4.3 million , $3.6 million , and $2.2 million for the years ended January 31, 2020 , 2019 , and 2018 , respectively. These leased assets are included in the computer equipment category in the table above. |
Business Combinations Business
Business Combinations Business Combinations | 12 Months Ended |
Jan. 31, 2020 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations On May 1, 2019, we acquired 100% of the outstanding equity of Artefact Product Group, LLC (“Artefact Product Group” or “10,000ft”), a Washington limited liability company, pursuant to an Agreement and Plan of Merger (the “Merger Agreement”). The acquisition is complementary to our existing product capabilities and accelerates our time to market for a resource planning software solution. The aggregate consideration paid in exchange for all of the outstanding equity interests of Artefact Product Group was approximately $27.8 million in cash, after a working capital adjustment of $0.2 million and excluding cash acquired. Of the cash paid at closing, as of January 31, 2020, a total of $2.8 million remains held in escrow for another three -month period to secure our indemnification rights under the Merger Agreement. We accounted for the transaction as a business combination using the acquisition method of accounting. We allocated the purchase price to the tangible and identifiable intangible assets acquired and liabilities assumed based on their respective estimated fair values on the acquisition date. Excess purchase price consideration was recorded as goodwill, and is primarily attributable to the acquired assembled workforce and expected growth from the expansion of the acquired product offerings and customer base. The goodwill recognized upon acquisition is expected to be deductible for U.S. federal income tax purposes. We engaged a third-party valuation specialist to aid our analysis of the fair value of the acquired intangibles. All estimates, key assumptions, and forecasts were either provided by or reviewed by us. While we chose to utilize a third-party valuation specialist for assistance, the fair value analysis and related valuations reflect the conclusions of management and not those of any third party. 10,000ft’s results of operations have been included in the Company’s consolidated results of operations since the acquisition date. The purchase price allocation as of the acquisition date was based on a preliminary valuation and is subject to revision as more detailed analyses are completed and additional information about the fair value of assets acquired and liabilities assumed becomes available. The major classes of assets and liabilities to which the Company preliminarily allocated the purchase price, net of the $0.2 million working capital adjustment, were as follows (in thousands): May 1, 2019 Cash $ 1,150 Current Assets 801 Intangible Assets 16,090 Goodwill 11,001 Current Liabilities (180 ) Deferred Revenue (1,030 ) Total $ 27,832 The estimated useful lives and fair values of the identifiable intangible assets at acquisition date were as follows (dollars in thousands): Fair Value Expected Useful Life Software Technology $ 8,000 5 years Customer Relationships 7,990 8 years Trade Name 100 32 months Total intangible assets $ 16,090 The significant identified intangible assets, software technology and customer relationships, were valued as follows: Software technology - we valued the finite-lived software technology using the relief-from-royalty method under the income approach. This method reflects the present value of the projected cash flows that are expected to be generated from the licensing of the asset to third parties. We applied judgment which involved the use of significant assumptions with respect to the base year revenue and the royalty rate. Customer relationships - we valued the finite-lived customer relationships using the multi-period excess-earnings method. This method involves forecasting the net earnings to be generated by the asset, reducing them by appropriate returns on contributory assets, and then discounting the resulting net returns to a present value using an appropriate discount rate. We applied judgment which involved the use of the significant assumption of the royalty rate impacting the returns on contributory assets for software technology. Fiscal 2019 Acquisition On January 11, 2019, Smartsheet Inc. purchased 100% of the issued and outstanding capital stock of TernPro, Inc. in an all-cash transaction for a total purchase price of $6.0 million . As a result of this acquisition, the Company recorded goodwill of $5.2 million ; identifiable intangible assets of $0.8 million , of which $0.5 million related to acquired software technology, and $0.3 million related to customer relationships; and other net assets of less than $0.1 million . In addition, the Company recorded a long-term liability of $1.0 million related to a holdback payable on the 18-month anniversary of the closing date. As of January 31, 2020, the liability of $1.0 million is classified as short-term, and is included within other accrued liabilities on the consolidated balance sheet. |
Goodwill and Net Intangible Ass
Goodwill and Net Intangible Assets | 12 Months Ended |
Jan. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Net Intangible Assets | Goodwill and Net Intangible Assets The changes in the carrying amount of goodwill during the twelve months ended January 31, 2020 were as follows (in thousands): Goodwill balance as of January 31, 2019 $ 5,496 Addition - acquisition of 10,000ft 11,181 Working capital adjustment - acquisition of 10,000ft (180 ) Goodwill balance as of January 31, 2020 $ 16,497 No goodwill impairments were recorded during the years ended January 31, 2020 , 2019 , or 2018 . The following table presents the components of net intangible assets (in thousands): As of January 31, 2020 As of January 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired software technology $ 9,866 $ (2,325 ) $ 7,541 $ 1,866 $ (494 ) $ 1,372 Acquired customer relationships 8,350 (900 ) 7,450 360 (25 ) 335 Trade names 100 (28 ) 72 — — — Patents 170 (91 ) 79 170 (63 ) 107 Domain name 13 — 13 13 — 13 Total $ 18,499 $ (3,344 ) $ 15,155 $ 2,409 $ (582 ) $ 1,827 The components of intangible assets acquired as of the periods presented were as follows (in thousands): As of January 31, 2020 As of January 31, 2019 Net Carrying Amount Weighted Average Life (Years) Net Carrying Amount Weighted Average Life (Years) Acquired software technology $ 7,541 4.0 $ 1,372 2.3 Acquired customer relationships 7,450 7.1 335 2.9 Trade names 72 1.9 — — Total $ 15,063 5.5 $ 1,707 2.4 Amortization expense was $2.8 million , $0.5 million , and $0.1 million for the twelve months ended January 31, 2020 , 2019 , and 2018 , respectively. As of January 31, 2020, estimated remaining amortization expense for the finite-lived intangible assets by fiscal year is as follows (in thousands): 2021 $ 3,358 2022 2,897 2023 2,608 2024 2,607 2025 1,406 Thereafter 2,266 Total $ 15,142 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Jan. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Company has issued incentive and non-qualifying stock options to employees and non-employee directors under the 2005 Stock Option/Restricted Stock Plan (“2005 Plan”), the 2015 Equity Incentive Plan (“2015 Plan”), and the 2018 Equity Incentive Plan (“2018 Plan”). The Company has also issued RSUs to employees pursuant to the 2015 Plan and the 2018 Plan. Employee stock options are granted with exercise prices at the fair value of the underlying common stock on the grant date, in general vest based on continuous employment over four years , and expire 10 years from the date of grant. Employee RSUs are measured based on the grant date fair value of the awards and in general vest based on continuous employment over four years . Shares offered under our equity plans are authorized but unissued. Stock options The following table includes a summary of the option activity during the year ended January 31, 2020 : Options Outstanding Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding at January 31, 2019 12,451,739 $ 5.72 8.0 $ 319,519 Granted 600,592 38.37 Exercised (3,536,988 ) 4.54 Forfeited or canceled (438,672 ) 8.99 Outstanding at January 31, 2020 9,076,671 8.18 7.3 365,766 Exercisable at January 31, 2020 4,863,428 4.82 6.8 212,357 Vested and expected to vest at January 31, 2020 8,659,579 7.87 7.3 351,644 The weighted-average grant date fair value per share of stock options granted during the years ended January 31, 2020 , 2019 , and 2018 was $17.11 , $4.66 , and $2.36 , respectively. The total grant date fair value of stock options vested was $11.1 million , $5.8 million , and $2.4 million during the years ended January 31, 2020 , 2019 , and 2018 , respectively. The intrinsic value of options exercised was $136.6 million , $66.7 million , and $17.8 million during the years ended January 31, 2020 , 2019 , and 2018 , respectively. Restricted stock units The following table includes a summary of the RSU activity during the year ended January 31, 2020 : Number of Shares Underlying Outstanding RSUs Weighted-Average Grant-Date Fair Value per RSU Outstanding at January 31, 2019 845,199 $ 24.17 Granted 2,869,964 41.62 Vested (330,302 ) 23.01 Forfeited or canceled (246,531 ) 36.07 Outstanding at January 31, 2020 3,138,330 39.32 An RSU award entitles the holder to receive shares of the Company’s common stock as the award vests, which is based on continued service. Non-vested RSUs do not have non-forfeitable rights to dividends or dividend equivalents. The weighted-average grant date fair value of RSUs granted during the years ended January 31, 2020 and 2019 was $41.62 and $26.12 , respectively. 2018 Employee Stock Purchase Plan In April 2018, we adopted our 2018 ESPP. The ESPP became effective on April 26, 2018, with the effective date of our IPO. Under our ESPP, eligible employees are able to acquire shares of our common stock by accumulating funds through payroll deductions of up to 15% of their compensation, subject to plan limitations. Purchases are accomplished through participation in discrete offering periods. Each offering period is six months (commencing each March 25 and September 25) and consists of one six -month purchase period, unless otherwise determined by our board of directors or our compensation committee. The purchase price for shares of our common stock purchased under our ESPP is 85% of the lesser of the fair market value of our common stock on (i) the first trading day of the applicable offering period or (ii) the last trading day of the purchase period in the applicable offering period. The following table includes a summary of shares available for issuance under our 2018 Plan and our 2018 ESPP during the year ended January 31, 2020 : Shares Available for Issuance 2018 Plan 2018 ESPP Balance at January 31, 2019 8,458,343 1,719,782 Authorized 5,248,572 1,049,714 Granted (3,470,556 ) (330,779 ) Forfeited 685,203 — Balance at January 31, 2020 10,921,562 2,438,717 The aggregate number of shares reserved for issuance under our ESPP will increase automatically on February 1 of each of the first 10 calendar years after the first offering date under the ESPP by the number of shares equal to 1% of the total outstanding shares of our Class A common stock and Class B common stock as of the immediately preceding January 31 (rounded to the nearest whole share) or such lesser number of shares as may be determined by our board of directors in any particular year. The aggregate number of shares issued over the term of our ESPP, subject to stock-splits, recapitalizations or similar events, may not exceed 20,400,000 shares of our Class A common stock. As of January 31, 2020 , $5.4 million has been withheld on behalf of employees for a future purchase under the ESPP and is recorded in accrued compensation and related benefits. Valuation assumptions The fair value of employee stock options and ESPP purchase rights was estimated using a Black-Scholes option pricing model with the following assumptions: Year Ended January 31, 2020 2019 2018 Employee Stock Options Risk-free interest rate 2.28%-2.59% 2.7%-2.9% 1.8%-2.6% Expected volatility 42.3%-42.5% 40.2%-40.8% 41.7%-46.0% Expected term (in years) 6.19-6.25 6.25 6.25 Expected dividend yield — % — % — % Employee Stock Purchase Plan Risk-free interest rate 1.9%-2.5% 2.0%-2.4% N/A Expected volatility 38.3%-51.1% 38.3%-42.2% N/A Expected term (in years) 0.49-0.50 0.33-0.49 N/A Expected dividend yield — % — % N/A The risk-free interest rate used in the Black-Scholes option pricing model is based on the U.S. Treasury yield that corresponds with the expected term at the time of grant. The expected term of an option is determined using the simplified method, which is calculated as the average of the contractual life and the vesting period. The expected term for the ESPP purchase rights is estimated using the offering period, which is typically six months . We estimate volatility for options using volatilities of a group of public companies in a similar industry, stage of life cycle, and size; and volatility of ESPP purchase rights using our own volatility history. The Company does not currently issue dividends and does not expect to for the foreseeable future. In addition to the assumptions used in the Black-Scholes option pricing model, we must also estimate a forfeiture rate to calculate the share-based compensation expense for awards. Our forfeiture rate is derived from historical employee termination behavior. If the actual number of forfeitures differs from these estimates, additional adjustments to compensation expense will be required. Given the absence of an active market for the Company’s common stock prior to the IPO, the board of directors was required to estimate the fair value of the Company’s common stock at the time of each option grant based on several factors, including consideration of input from management and contemporaneous third-party valuations. These valuations included consideration of enterprise value and assessment of other common stock and convertible preferred stock transactions occurring during the period. Share-based compensation expense Share-based compensation expense included in the consolidated statements of operations was as follows (in thousands): Year Ended January 31, 2020 2019 2018 Cost of subscription revenue $ 1,392 $ 346 $ 96 Cost of professional services revenue 1,259 466 67 Research and development 14,260 5,873 6,029 Sales and marketing 12,937 5,163 1,707 General and administrative 7,716 4,055 10,565 Total share-based compensation $ 37,564 $ 15,903 $ 18,464 In the year ended January 31, 2018, subsequent to the sale of the Company’s Series F convertible preferred stock, the Company facilitated a tender offer (the “2017 Tender Offer”) in which certain of the Company’s current and former employees and directors sold shares of common and convertible preferred stock to other existing shareholders. The sale of shares by the employees, directors, and other shareholders was facilitated by the Company. A total of 6,477,843 shares of common and convertible preferred stock were tendered for a total purchase price of $55.0 million . Our q uarterly trends in total operating expenses, operating loss, and net loss, were significantly impacted by this transaction, which took place and was completed during the three months ended July 31, 2017. The premium over the fair value of the shares of common and convertible preferred stock that was paid by existing investors to current employees and directors, totaling $15.5 million , was recorded as share-based compensation expense for the year ended January 31, 2018. The excess over the fair value of the sale price of the shares of common and convertible preferred stock sold by non-employees, totaling $4.6 million , was recorded as a deemed dividend within additional paid-in capital in the year ended January 31, 2018. Share-based compensation expense related to the 2017 Tender Offer, which is included in the table above, was as follows (in thousands): Year Ended January 31, 2020 2019 2018 Cost of subscription revenue $ — $ — $ 53 Cost of professional services revenue — — 9 Research and development — — 5,124 Sales and marketing — — 583 General and administrative — — 9,701 Total share-based compensation expense $ — $ — $ 15,470 As of January 31, 2020 , there was a total of $124.1 million of unrecognized share-based compensation expense, which is expected to be recognized over a weighted-average period of 3.1 years . |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company is liable for income taxes in the United States, the United Kingdom, and Australia. U.S. and international components of loss before provision for income taxes were as follows (in thousands): Year Ended January 31, 2020 2019 2018 United States $ (96,810 ) $ (53,939 ) $ (49,303 ) Foreign 984 347 (110 ) Loss before provision for income taxes $ (95,826 ) $ (53,592 ) $ (49,413 ) The expense (benefit) for income taxes consisted of (in thousands): Year Ended January 31, 2020 2019 2018 Current: Federal $ — $ — $ — State 85 34 40 Foreign 17 69 — Total current provision for income taxes 102 103 40 Deferred and other: Federal — 203 (302 ) State — — (45 ) Foreign 12 (13 ) — Total deferred tax expense (benefit) 12 190 (347 ) Total tax expense (benefit) $ 114 $ 293 $ (307 ) Income tax expense for the year ended January 31, 2020 was recognized primarily due to state and foreign income taxes. Income tax expense for the year ended January 31, 2019 was recognized primarily due to changes in purchase accounting related to the acquisition of Converse.AI that reduced the overall acquired deferred tax liability. As a result, the increase in the valuation allowance was recognized in income tax expense. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the “Tax Cuts and Jobs Act” (“TCJA”). The TCJA made broad and complex changes to the Internal Revenue Code, including but not limited to, a reduction in the U.S. corporate income tax rate to 21%, requiring a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries, a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries, and a new provision designed to tax global intangible low-taxed income (“GILTI”). The reduction in the corporate tax rate reduced the Company’s effective tax rate in future periods. Since the Company has a January 31 fiscal year end, the U.S. entity had a blended tax rate of 32.9% for the fiscal year ended January 31, 2018. As of January 31, 2018, the Company also remeasured its U.S. deferred tax assets and liabilities based upon the rates at which they were expected to reverse in the future. The result of the remeasurement was an $11.1 million reduction to the Company’s U.S. federal net deferred tax assets. A corresponding change was recorded to the valuation allowance. The TCJA subjects a U.S. shareholder to tax on GILTI earned by certain foreign subsidiaries. An entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as a GILTI in future years or to provide for the tax expense related to GILTI in the year the tax is incurred as period expense. The Company has elected to account for GILTI in the year the tax is incurred as a period cost. The reconciliation of federal statutory income tax to the Company’s provision for income taxes is as follows (in thousands): Year Ended January 31, 2020 2019 2018 Expected provision at statutory federal rate $ (20,124 ) $ (11,254 ) $ (16,267 ) Tax credits (5,798 ) (2,408 ) (1,327 ) Change in valuation allowance 47,412 17,487 1,528 Share-based compensation (22,009 ) (4,631 ) 4,430 Impact of tax reform — — 11,125 Other 633 1,099 204 Total income tax provision (benefit) $ 114 $ 293 $ (307 ) U.S. federal tax net operating loss carryforwards were approximately $205.6 million and $82.3 million at January 31, 2020 and 2019 , respectively, which will expire on various dates, starting in 2025. As of January 31, 2020 and 2019 , the Company’s tax credit carryforwards for income tax purposes were approximately $12.1 and $6.3 million , respectively, net of uncertain tax positions for research and development credits. If not used, a portion of the tax credit carryforwards will begin to expire in 2031. Deferred income taxes reflect the net tax effects of loss and credit carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of temporary differences and related deferred tax assets and liabilities as of January 31, 2020 and 2019 were as follows (in thousands): January 31, 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 49,433 $ 18,972 Deferred revenue 39,542 23,146 Lease liabilities 14,243 — Tax credits 12,094 6,340 Share-based compensation 6,661 1,776 Accrued compensation 3,308 1,963 Other 625 949 Total deferred tax assets 125,906 53,146 Valuation allowance (100,240 ) (45,761 ) Total deferred tax assets, net 25,666 7,385 Deferred tax liabilities: Lease right-of-use assets (13,475 ) — Capitalized commissions (11,724 ) (6,955 ) Property and equipment (431 ) — Intangibles (15 ) (398 ) Total deferred tax liabilities (25,645 ) (7,353 ) Net deferred tax assets $ 21 $ 32 Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three-year period ended January 31, 2020. Such objective evidence limits the ability to consider other subjective evidence, such as the Company’s projections for future growth. On the basis of this evaluation, the Company has established a full valuation allowance equal to its U.S. and U.K. net deferred tax assets due to the uncertainty of future realization of the net deferred tax assets. The valuation allowance increased by $54.5 million during the period ended January 31, 2020. The increase in the valuation allowance was primarily related to U.S. federal and state losses incurred during the period. The calculation of the Company’s tax obligations involves dealing with uncertainties in the application of complex tax laws and regulations. ASC 740, Income Taxes , provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, on the basis of the technical merits. The Company has assessed its income tax positions and recorded tax benefits for all years subject to examination, based upon its evaluation of the facts, circumstances, and information available at each period end. For those tax positions where the Company has determined there is a greater than 50% likelihood that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is determined there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit has been recognized. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits: Year Ended January 31, 2020 2019 2018 Balance, beginning of the year $ 1,416 $ 683 $ — Increases to tax positions taken during the current year 1,850 808 360 Increases to tax positions taken in prior years 73 — 323 Decreases to tax positions taken in prior years — (75 ) — Balance, end of year $ 3,339 $ 1,416 $ 683 Although the Company believes that it has adequately reserved for its uncertain tax positions, it can provide no assurance that the final tax outcome of these matters will not be materially different. The Company makes adjustments to its reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made. No liability was recorded for uncertain tax positions, or related interest or penalties, as of January 31, 2020 and 2019 . As of January 31, 2020 and 2019 , the Company had $3.3 million and $1.4 million of unrecognized tax benefits, respectively, of which the total amount that would impact the effective tax rate, if recognized, is $3.3 million and $1.4 million , respectively. Any impact on the effective tax rate for unrecognized tax benefits would be offset by the impact of the Company's full valuation allowance on its U.S. federal and state deferred tax assets. In the U.S., the Company’s tax years from 2005 to present remain effectively open to examination by the Internal Revenue Service, as well as various state and foreign jurisdictions. Interest or penalties, if incurred, are recognized as a component of income tax expense. Penalties and interest recognized were no t material for the years ended January 31, 2020 , 2019 , and 2018 . As a result of certain realization requirements of ASC 718, Compensation - Stock Compensation , the table of deferred tax assets and liabilities does not include certain deferred tax assets as of January 31, 2019 |
Leases
Leases | 12 Months Ended |
Jan. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases primarily related to corporate offices and certain equipment, and finance leases primarily related to data center equipment. Our leases have remaining lease terms of less than 1 year to 7 years , some of which include options to extend the leases for up to 5 years . The components of lease expense recorded in the consolidated statements of operations and comprehensive loss were as follows (in thousands): Twelve Months Ended Operating lease cost $ 11,494 Finance lease cost: Amortization of assets 4,195 Interest on lease liabilities 250 Short-term lease cost 845 Variable lease cost 1,865 Total lease costs $ 18,649 Supplemental balance sheet information related to leases was as follows (in thousands): Financial Statement Line Item January 31, 2020 Assets: Operating lease assets Operating lease right-of-use assets $ 57,590 Finance lease assets Property and equipment, net 3,939 Total leased assets $ 61,529 Liabilities: Current Operating lease liabilities Operating lease liabilities, current $ 13,020 Finance lease liabilities Finance lease liabilities, current 2,465 Non-current Operating lease liabilities Operating lease liabilities, non-current 47,913 Finance lease liabilities Finance lease liabilities, non-current 1,664 Total lease liabilities $ 65,062 Other information related to leases was as follows (dollars in thousands): Twelve Months Ended Supplemental cash flow information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows related to operating leases* $ 9,990 Operating cash flows related to finance leases 243 Financing cash flows related to finance leases 4,167 Right-of-use assets obtained in exchange for lease obligations: Operating leases 12,173 Finance leases 2,364 Weighted-average remaining lease term (in years): Operating leases 5.8 Finance leases 1.8 Weighted-average discount rate: Operating leases 5.9 % Finance leases 4.7 % *Includes cash paid for lease liability accretion of $4.4 million . As of January 31, 2020 , remaining maturities of lease liabilities were as follows (in thousands): Operating Leases Finance Leases Fiscal 2021 $ 13,345 $ 2,599 Fiscal 2022 12,510 1,286 Fiscal 2023 11,545 426 Fiscal 2024 11,812 — Fiscal 2025 10,102 — Thereafter 12,961 — Total lease payments $ 72,275 $ 4,311 Less: imputed interest (11,342 ) (182 ) Total $ 60,933 $ 4,129 As of January 31, 2020 , we had signed leases for additional office space that had not yet commenced. Future non-cancelable lease payments associated with these agreements totaled $42.3 million , payable over lease terms ranging from 7 to 9 years . Total rent and related operating expenses recorded under Topic 840, the previous lease standard, totaled $8.9 million , and $5.0 million for the years ended January 31, 2019 , and 2018 , respectively. As of January 31, 2019 , future minimum annual lease payments (in thousands) related to the lease agreements mentioned above were as follows: Operating Leases Capital Leases Total Fiscal 2020 $ 10,255 $ 3,970 $ 14,225 Fiscal 2021 11,121 1,776 12,897 Fiscal 2022 11,293 463 11,756 Fiscal 2023 11,536 — 11,536 Fiscal 2024 11,812 — 11,812 Thereafter 23,064 — 23,064 Total minimum lease payments $ 79,081 $ 6,209 $ 85,290 Less: amount representing interest 277 Present value of capital lease obligations $ 5,932 |
Leases | Leases The Company has operating leases primarily related to corporate offices and certain equipment, and finance leases primarily related to data center equipment. Our leases have remaining lease terms of less than 1 year to 7 years , some of which include options to extend the leases for up to 5 years . The components of lease expense recorded in the consolidated statements of operations and comprehensive loss were as follows (in thousands): Twelve Months Ended Operating lease cost $ 11,494 Finance lease cost: Amortization of assets 4,195 Interest on lease liabilities 250 Short-term lease cost 845 Variable lease cost 1,865 Total lease costs $ 18,649 Supplemental balance sheet information related to leases was as follows (in thousands): Financial Statement Line Item January 31, 2020 Assets: Operating lease assets Operating lease right-of-use assets $ 57,590 Finance lease assets Property and equipment, net 3,939 Total leased assets $ 61,529 Liabilities: Current Operating lease liabilities Operating lease liabilities, current $ 13,020 Finance lease liabilities Finance lease liabilities, current 2,465 Non-current Operating lease liabilities Operating lease liabilities, non-current 47,913 Finance lease liabilities Finance lease liabilities, non-current 1,664 Total lease liabilities $ 65,062 Other information related to leases was as follows (dollars in thousands): Twelve Months Ended Supplemental cash flow information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows related to operating leases* $ 9,990 Operating cash flows related to finance leases 243 Financing cash flows related to finance leases 4,167 Right-of-use assets obtained in exchange for lease obligations: Operating leases 12,173 Finance leases 2,364 Weighted-average remaining lease term (in years): Operating leases 5.8 Finance leases 1.8 Weighted-average discount rate: Operating leases 5.9 % Finance leases 4.7 % *Includes cash paid for lease liability accretion of $4.4 million . As of January 31, 2020 , remaining maturities of lease liabilities were as follows (in thousands): Operating Leases Finance Leases Fiscal 2021 $ 13,345 $ 2,599 Fiscal 2022 12,510 1,286 Fiscal 2023 11,545 426 Fiscal 2024 11,812 — Fiscal 2025 10,102 — Thereafter 12,961 — Total lease payments $ 72,275 $ 4,311 Less: imputed interest (11,342 ) (182 ) Total $ 60,933 $ 4,129 As of January 31, 2020 , we had signed leases for additional office space that had not yet commenced. Future non-cancelable lease payments associated with these agreements totaled $42.3 million , payable over lease terms ranging from 7 to 9 years . Total rent and related operating expenses recorded under Topic 840, the previous lease standard, totaled $8.9 million , and $5.0 million for the years ended January 31, 2019 , and 2018 , respectively. As of January 31, 2019 , future minimum annual lease payments (in thousands) related to the lease agreements mentioned above were as follows: Operating Leases Capital Leases Total Fiscal 2020 $ 10,255 $ 3,970 $ 14,225 Fiscal 2021 11,121 1,776 12,897 Fiscal 2022 11,293 463 11,756 Fiscal 2023 11,536 — 11,536 Fiscal 2024 11,812 — 11,812 Thereafter 23,064 — 23,064 Total minimum lease payments $ 79,081 $ 6,209 $ 85,290 Less: amount representing interest 277 Present value of capital lease obligations $ 5,932 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Commitments We have entered into various non-cancelable lease agreements related to corporate offices and certain equipment, and finance leases primarily related to data center equipment. For additional information regarding our lease agreements, see Note 12. Purchase Commitments The Company entered into a three -year commitment with a cloud-based hosting service provider for $15.0 million in the period ended January 31, 2019. As of January 31, 2020 , $8.5 million of the total commitment amount remained unpaid, of which the greater of our on-demand usage or $5.0 million is to be paid in fiscal 2021, and an amount equal to the total commitment less the upfront payments and monthly charges incurred through fiscal 2021 is to be paid in fiscal 2022. Legal matters From time to time in the normal course of business, the Company may be subject to various legal matters such as threatened or pending claims or proceedings. We are not currently a party to any material legal proceedings or claims, nor are we aware of any pending or threatened litigation or claims against the Company that could have a material adverse effect on our business, operating results, cash flows, or financial condition should such litigation or claim be resolved unfavorably. An indemnification claim has been made to the Company in a litigation in which a former director and shareholder are parties. At this time, the Company cannot reasonably estimate the magnitude of its indemnification obligation, if any. |
401(k) and Pension Plans
401(k) and Pension Plans | 12 Months Ended |
Jan. 31, 2020 | |
Retirement Benefits [Abstract] | |
401(k) and Pension Plans | 401(k) and Pension Plans In March 2008, the Company initiated a 401(k) plan for the benefit of its employees. No employer contributions were made to the 401(k) plan by the Company during the fiscal years ended January 31, 2020 , 2019 , or 2018 . In January 2018, the Company began contributing to a pension plan for the benefit of its employees based in the United Kingdom. In January 2020, the Company began contributing to a pension plan for the benefit of its employees based in Australia. Contributions to the plans by the Company were no t material during the years ended January 31, 2020 , 2019 and 2018 . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jan. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Certain members of the board of directors serve as directors of, or are executive officers of, and in some cases are investors in, companies that are customers or vendors of the Company. Certain of the Company’s executive officers also serve as directors of, or serve in an advisory capacity to, companies that are customers or vendors of the Company. Related-party transactions were no t material as of and for the years ended January 31, 2020 , 2019 , and 2018 . |
Geographic Information
Geographic Information | 12 Months Ended |
Jan. 31, 2020 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information Revenue by geographic location is determined by the location of the Company’s customers. The following table sets forth revenue (in thousands) by geographic area: Year Ended January 31, 2020 2019 2018 United States $ 214,492 $ 135,761 $ 81,480 EMEA 29,246 21,087 14,654 Asia Pacific 12,969 11,863 9,181 Americas other than the United States 14,175 9,011 5,938 Total $ 270,882 $ 177,722 $ 111,253 No individual country other than the United States contributed more than 10% of total revenue during any of the periods presented. Property and equipment by geographic location is based on the location of the legal entity that owns the asset. As of January 31, 2020 and January 31, 2019 , there was no significant property and equipment owned by the Company outside of the United States. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jan. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In March 2020, the Company withdrew early from two certificates of deposit and subsequently invested the aggregate amount withdrawn into U.S. treasury securities funds, which qualify as cash and cash equivalents. The certificates of deposit totaled $101.1 million of which $50.6 million was included in cash and cash equivalents and $50.5 million |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in th e United States of America (“GAAP”) , and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding financial reporting . The Company’s fiscal year ends on January 31. The consolidated financial statements include the results of Smartsheet Inc. and its wholly owned subsidiaries, which are located in the United States, the United Kingdom, and Australia. All intercompany balances and transactions have been eliminated upon consolidation. |
Use of estimates | Use of estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. The Company bases its estimates on historical experience and on other assumptions that its management believes are reasonable under the circumstances. Actual results could differ from those estimates. The Company’s most significant estimates and judgments involve revenue recognition with respect to the allocation of transaction consideration for the Company’s offerings; determination of the amortization period for capitalized sales commission costs; capitalization of internal-use software development costs; valuation of assets and liabilities acquired as part of business combinations; and incremental borrowing rate estimates for operating leases, among others. In December 2019, the novel COVID-19 coronavirus (“COVID-19”) was reported in China and in March 2020 the World Health Organization declared it a pandemic. The extent of the impact of COVID-19 on our operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, impact on our customers and our sales cycles, and impact on our employees, all of which are uncertain and cannot be predicted. As of the date of issuance of the financial statements, we are not aware of any specific event or circumstance that would require us to update our estimates, judgments or revise the carrying value of our assets or liabilities. These estimates may change, as new events occur and additional information is obtained, and are recognized in the consolidated financial statements as soon as they become known. Actual results could differ from those estimates and any such differences may be material to our financial statements. |
Segment information | Segment information The Company operates as one operating segment. The Company’s chief operating decision maker is its Chief Executive Officer, who reviews consolidated financial information for purposes of making operating decisions, assessing financial performance, and allocating resources. |
Revenue recognition | Revenue recognition The Company derives its revenue primarily from subscription services and professional services. Revenue is recognized when control of these services is transferred to the Company ’ s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services, net of any sales taxes. The Company determines revenue recognition through the following steps: • identification of the contract, or contracts, with a 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 revenue when, or as, the Company satisfies a performance obligation. Subscription revenue Subscription revenue primarily consists of fees from customers for access to the Company’s cloud-based platform . S ubscription revenue is recognized on a ratable basis over the subscription contract term, beginning on the date the access to the Company ’ s platform is provided, as no implementation work is required, if consideration the Company is entitled to receive is probable of collection. S ubscription contracts generally have terms of one year or one month, are billed in advance, and are non-cancelable. The subscription arrangements do not allow the customer the contractual right to take possession of the platform; as such, the arrangements are considered to be service contracts. Certain of the Company ’ s subscription contracts contain performance guarantees related to service continuity. To date, refunds related to such guarantees have been immaterial in all periods presented. Professional services revenue Professional services revenue primarily includes revenue recognized from fees for consulting and training services. The Company’s consulting services consist of platform configuration and use case optimization, and are primarily invoiced on a time and materials basis, monthly in arrears. Services revenue is recognized over time, as service hours are delivered. Smaller consulting engagements are, on occasion, provided for a fixed fee. These smaller consulting arrangements are typically of short duration (less than three months). In these cases, revenue is recognized over time, based on the proportion of hours of work performed, compared to the total hours expected to complete the engagement. Configuration and use case optimization services do not result in significant customization or modification of the software platform or user interface. Training services are billed in advance, on a fixed-fee basis, and revenue is recognized after the training program is delivered, or after the customer’s right to receive training services expires. Associated out-of-pocket travel expenses related to the delivery of professional services are typically reimbursed by the customer. Out-of-pocket expense reimbursements are recognized as revenue at the point in time, or as the distinct performance obligation to which they relate is delivered. Out-of-pocket expenses are recognized as cost of professional services as incurred. On occasion, the Company sells its subscriptions to third-party resellers. The price at which the Company sells to the reseller is typically discounted, as compared to the price at which the Company would sell to an end customer, in order to enable the reseller to realize a margin on the eventual sale to the end customer. As the Company retains a fixed amount of the contract from the reseller, and does not have visibility into the pricing provided by the reseller to the end customer, the revenue is recorded net of any reseller margin. Contracts with multiple performance obligations Some of the Company’s contracts with customers contain multiple performance obligations. The Company accounts for individual performance obligations separately, as they have been determined to be distinct, i.e., the services are separately identifiable from other items in the arrangement and the customer can benefit from them on its own or with other resources that are readily available to the customer. The transaction price is allocated to the distinct performance obligations on a relative stand-alone selling price basis. Stand-alone selling prices are determined based on the prices at which the Company separately sells subscription, consulting, and training services, and based on t he Company’s overall pricing objectives, taking into consideration market conditions, value of t he Company’s contracts, the types of offerings sold, customer demographics, and other factors. Accounts receivable Accounts receivable are primarily comprised of trade receivables that are recorded at the invoice amount, net of an allowance for doubtful accounts. Subscription fees billed in advance of the related subscription term represent contract liabilities and are presented as accounts receivable and deferred revenues upon establishment of the unconditional right to invoice, typically upon signing of the non-cancelable service agreement. Our typical payment terms provide for customer payment within 30 days of the date of the contract. The allowance for doubtful accounts is based on the Company’s assessment of the collectability of accounts by considering the composition of the accounts receivable aging and historical trends on collectability. Amounts deemed uncollectible are recorded to the allowance for doubtful accounts in the consolidated balance sheets with an offsetting decrease in related deferred revenue and a reduction of revenue or charge to general and administrative expense in the statements of operations . During the year ended January 31, 2020 , activity related to the Company’s provision for doubtful accounts was as follows (in thousands): Balance at January 31, 2018 $ 457 Write-offs (849 ) Additions, net 1,626 Balance at January 31, 2019 1,234 Write-offs (1,629 ) Additions, net 3,384 Balance at January 31, 2020 $ 2,989 Activity related to the Company’s provision for doubtful accounts during the year ended January 31, 2018 was as follows (in thousands): Balance at January 31, 2017 $ 104 Additions, net of write-offs 353 Balance at January 31, 2018 $ 457 Deferred revenue Deferred revenue is recorded for subscription services contracts upon establishment of unconditional right to payment under a non-cancelable contract before transferring the related services to the customer. Deferred revenue for such services is amortized into revenue over time, as those subscription services are delivered. Similarly, the Company records deferred revenue for fixed-fee professional services upon establishment of an unconditional right to payment under a non-cancelable contract. Deferred revenue for training services is recognized as revenue upon delivery of training services or upon expiration of customer’s right to receive such services. Deferred revenue for consulting services is recognized as hours of service are delivered to the customer. Deferred commissions The majority of sales commissions earned by the Company ’s sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions are paid on initial contracts and on any upsell contracts with a customer. No sales commissions are paid on customer renewals. Sales commissions are deferred and then amortized on a straight-line basis over a period of benefit that the Company has determined to be three years. The Company determined the period of benefit by taking into consideration its customer contracts, expected customer life, the expected life of its technology, and other factors. Amortization expense is included in sales and marketing expenses in the accompanying statements of operations. Overhead allocations The Company allocates shared costs, such as facilities (including rent, utilities, and depreciation on equipment shared by all departments), and information technology costs to all departments based on headcount. As such, allocated shared costs are reflected in each cost of revenue and operating expense category. |
Cash, cash equivalents, and short-term investments | Cash, cash equivalents, and short-term investments The Company considers all highly liquid investments with an original maturity of three months or less from date of purchase to be cash equivalents. Investments with terms greater than three months but less than or equal to twelve months are included in short-term investments. Interest income earned on cash, cash equivalents, and short-term investments is recorded in interest income in the accompanying statements of operations. |
Restricted cash | Restricted cash Restricted cash as of January 31, 2020 primarily consisted of $0.9 million related to security deposits for the Company’s Bellevue, Boston, London, and Edinburgh leases. Restricted cash as of January 31, 2019 consisted of $1.8 million related to collateral for irrevocable letters of credit (entered into during the year ended January 31, 2019) for additional office space in Bellevue, and $0.8 million primarily related to security deposits for the Company’s Bellevue, Boston, London, and Edinburgh leases. Restricted cash as of January 31, 2018 consisted of $2.4 million related to collateral for irrevocable letters of credit and $0.5 million related to security deposits. The letters of credit that were outstanding as of January 31, 2018 were still in effect as of January 31, 2020; however, the requirement to maintain $2.4 million in collateral for those letters of credit was removed during the year ended January 31, 2019, and the restricted cash balance was reduced by this amount. |
Internal-use software development costs | Internal-use software development costs The Company capitalizes certain qualifying costs incurred during the application development stage in connection with the development of internal-use software. Costs related to preliminary project activities and post-implementation activities are expensed in research and development (“R&D”) as incurred. R&D expenses consist primarily of employee-related costs, hardware- and software-related costs, costs of outside services used to supplement our internal staff, and overhead allocations. Internal-use software costs of $8.1 million were capitalized in the year ended January 31, 2020 , of which $5.8 million related to costs incurred during the application development stage of software development for the Company’s platform to which subscriptions are sold. Internal-use software costs of $3.5 million were capitalized in the year ended January 31, 2019 , of which $1.5 million related to costs incurred during the application development stage of software development for the Company’s platform to which subscriptions are sold. Capitalized software development costs are included within property and equipment, net on the balance sheets, and are amortized over the estimated useful life of the software, which is typically three years . The related amortization expense is recognized in the consolidated statements of comprehensive loss within the function that receives the benefit of the developed software. Amortization expense of capitalized internal-use software costs totaled $2.3 million , $1.0 million and $0.2 million for the years ended January 31, 2020 , 2019 and 2018, respectively. The Company evaluates the useful lives of these assets and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. |
Business combinations | Business combinations When we acquire a business, the purchase price is allocated to the net tangible and identifiable intangible assets acquired based on their estimated fair values. Any residual purchase price is recorded as goodwill. The allocation of the purchase price requires management to make significant estimates in determining the fair values of assets acquired and liabilities assumed, especially with respect to intangible assets. These estimates can include, but are not limited to, the cash flows that an asset is expected to generate in the future, the appropriate weighted-average cost of capital, and the cost savings expected to be derived from acquiring an asset. These estimates are inherently uncertain and unpredictable. During the measurement period, which may be up to one year from the acquisition date, adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed may be recorded, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statements of operations. |
Goodwill & Acquired Intangible Assets | Goodwill & Acquired Intangible Assets The Company evaluates goodwill for impairment at the reporting unit level on an annual basis (September 1), or whenever events or changes in circumstances indicate that impairment may exist. When evaluating goodwill for impairment, the Company may first perform a qualitative assessment to determine whether it is more likely than not that a reporting unit is impaired. If the Company does not perform a qualitative assessment, or if the Company determines that it is not more likely than not that the fair value of the reporting unit exceeds its carrying amount, the Company calculates the estimated fair value of the reporting unit. Fair value is the price a willing buyer would pay for the reporting unit and is typically calculated using a discounted cash flow model. If the carrying amount of the reporting unit exceeds the estimated fair value, an impairment charge is recorded to reduce the carrying value to the estimated fair value. Acquired intangible assets consist of identifiable intangible assets, primarily software technology and customer relationships, resulting from our acquisitions. Intangible assets are recorded at fair value on the date of acquisition and amortized over their estimated useful lives. |
Impairment of long-lived assets | Impairment of long-lived assets Long-lived assets, such as property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Recoverability of an asset group is measured by comparing the carrying amount to the estimated undiscounted future cash flows expected to be generated. If the carrying amount exceeds the undiscounted cash flows, the assets are determined to be impaired and an impairment charge is recognized as the amount by which the carrying amount exceeds its fair value. No impairments of long-lived assets were recorded during any of the periods presented. |
Leases | Leases We determine if an arrangement is a lease at inception, and leases are classified at commencement as either operating or finance leases. Right-of-use (“ROU”) assets and lease liabilities are recognized at commencement date based on the present value of the future minimum lease payments over the lease term. ROU assets also include any lease payments made. Operating lease ROU assets are presented separately in long-term assets and finance lease ROU assets are included in property and equipment, net on our consolidated balance sheets. As our operating leases do not provide an implicit rate, we use our incremental borrowing rate based on information available at the commencement date in determining the present value of future payments. This rate is an estimate of the collateralized borrowing rate we would incur on our future lease payments over a similar term based on the information available at commencement date. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. At January 31, 2020 , we did not include any options to extend leases in our lease terms as we were not reasonably certain to exercise them. The Company’s lease agreements do not contain residual value guarantees or covenants. We utilize certain practical expedients and policy elections available under the lease accounting standard. Leases with a term of one year or less are not recognized on our consolidated balance sheets; we recognize lease expense for these leases on a straight-line basis over the lease term. Additionally, we have elected to include non-lease components with lease components for contracts containing real estate leases for the purpose of calculating lease right-of-use assets and liabilities, to the extent that they are fixed. Non-lease components that are not fixed are expensed as incurred as variable lease payments. Our real estate operating leases typically include non-lease components such as common-area maintenance costs. ROU assets are subject to evaluation for impairment or disposal on a basis consistent with other long-lived assets. |
Self-funded health insurance | Self-funded health insurance |
Advertising expenses | Advertising expenses |
Convertible preferred stock warrant liability | Convertible preferred stock warrant liability The Company classified its warrant to purchase convertible preferred stock as a liability. The Company adjusted the carrying value of the warrant liability to fair value at the end of each reporting period utilizing the Black-Scholes option pricing model. The convertible preferred stock warrant liability was included on the Company’s consolidated balance sheets and its revaluation was recorded as an expense in other income (expense), net for the fiscal years ended 2018 and 2019. Upon the closing of the IPO on May 1, 2018, the related warrant liability was reclassified to additional paid-in capital. |
Share-based compensation | Share-based compensation The Company measures and recognizes compensation expense for all share-based awards granted to employees and directors, based on the estimated fair value of the award on the date of grant. Expense is recognized on a straight-line basis over the vesting period of the award based on the estimated portion of the award that is expected to vest. The Company uses the Black-Scholes option pricing model to measure the fair value of stock option awards when they are granted. The Company makes several estimates in determining share-based compensation and these estimates generally require significant analysis and judgment to develop. |
Income taxes | Income taxes Income taxes are accounted for using the asset and liability method. Under this method, the Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. The Company records a valuation allowance to reduce deferred tax assets to an amount for which realization is more likely than not. The Company evaluates and accounts for uncertain tax positions using a two-step approach. The first step is to evaluate if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained in an audit. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company reflects interest and penalties related to income tax liabilities as a component of income tax expense. |
Concentrations of risk and significant customers | Concentrations of risk and significant customers Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash, cash equivalents, short-term investments, and accounts receivable. The Company maintains its cash accounts with financial institutions where deposits, at times, exceed the Federal Deposit Insurance Corporation (“FDIC”) limits. |
Net loss per share | Net loss per share Prior to the IPO, holders of t he Company’s convertible preferred stock participated in dividends with holders of t he Company’s common stock, but they were not contractually required to share in net losses. Accordingly, during those periods of income, the Company was required to use the two-class method of calculating earnings per share. The two-class method requires that earnings per share be calculated separately for each class of security. As t he Company incurred losses during the periods presented, t he Company used the methods described below to calculate net loss per share. The Company calculates basic net loss per share by dividing net loss attributable to common shareholders by the weighted-average number of the Company’s common stock shares outstanding during the respective period. Net loss attributable to common shareholders is net loss minus convertible preferred stock dividends declared, of which there were none during the periods presented. The Company calculates diluted net loss per share using the treasury stock and if-converted methods, which consider the potential impacts of outstanding stock options, restricted stock units (“RSUs”), shares issuable pursuant to our Employee Stock Purchase Plan (“ESPP”), warrants, and convertible preferred stock. Under these methods, the numerator and denominator of the net loss per share calculation are adjusted for these securities if the impact of doing so increases net loss per share. During the periods presented, the impact is to decrease net loss per share and therefore the Company is precluded from adjusting its calculation for these securities. As a result, diluted net loss per share is calculated using the same formula as basic net loss per share. |
Recently adopted accounting pronouncements | Recently adopted accounting pronouncements We adopted Accounting Standard Update (“ASU”) 2016-02, Leases - Topic 842 (“ASC 842”) on February 1, 2019 using the optional transition method described in ASU 2018-11, Leases - Targeted Improvements . Under the optional transition method, we recognized the cumulative effect of initially applying the guidance as an adjustment to the operating lease ROU assets and operating lease liabilities on our consolidated balance sheet on February 1, 2019 without retrospective application to comparative periods. The new lease standard requires lessees to recognize ROU assets and lease liabilities on the balance sheet for operating leases, and also requires additional quantitative and qualitative disclosures to enable users of the financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. In adopting ASC 842, we utilized certain practical expedients available under the standard. These practical expedients include waiving reassessment of conclusions reached under the previous lease standard as to whether contracts contain leases and not recording ROU assets or lease liabilities for leases with terms of 12 months or less. As a result of implementing this guidance, we recognized a $53.4 million net operating ROU asset and a $55.3 million operating lease liability, inclusive of $1.9 million previously classified as deferred rent, in our consolidated balance sheet as of February 1, 2019. The adoption of ASC 842 did not have an impact on our accumulated deficit on our consolidated balance sheet as of February 1, 2019 and is not expected to have a material impact on our consolidated statements of operations and comprehensive loss. See Note 12, Leases, for additional information regarding our leases. Recent accounting pronouncements not yet adopted In June 2016, the FASB issued ASU 2016-13, including subsequent amendments, Measurement of Credit Losses on Financial Instruments (Topic 326) (“ASU 2016-13”) and has modified the standard thereafter, which modifies the accounting methodology for most financial instruments. The guidance establishes a new “expected loss model” that requires entities to estimate current expected credit losses on financial instruments by using all practical and relevant information. Additionally, any expected credit losses are to be reflected as allowances rather than reductions in the amortized cost of available-for-sale debt securities. This guidance is effective for interim and annual periods beginning after December 15, 2019, and early adoption is permitted. The Company does not expect the adoption of this standard to have a material effect on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other-Internal-Use Software (“ASU 2018-15”) , which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This guidance is effective for interim and annual reporting periods beginning after December 15, 2019, and early adoption is permitted. The Company does not expect adoption of this ASU to have a material effect on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) (“ASU 2019-12”), which simplifies certain aspects of accounting for income taxes. The guidance is effective for interim and annual reporting periods beginning after December 15, 2020, and early adoption is permitted. The Company does not expect adoption of this ASU to have a material effect on the Company’s consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Allowance for Doubtful Accounts | During the year ended January 31, 2020 , activity related to the Company’s provision for doubtful accounts was as follows (in thousands): Balance at January 31, 2018 $ 457 Write-offs (849 ) Additions, net 1,626 Balance at January 31, 2019 1,234 Write-offs (1,629 ) Additions, net 3,384 Balance at January 31, 2020 $ 2,989 Activity related to the Company’s provision for doubtful accounts during the year ended January 31, 2018 was as follows (in thousands): Balance at January 31, 2017 $ 104 Additions, net of write-offs 353 Balance at January 31, 2018 $ 457 |
Schedule of Cash and Cash Equivalents | Cash as reported on the consolidated statements of cash flows consists of the following (in thousands): January 31, 2020 2019 2018 Cash and cash equivalents $ 515,924 $ 213,085 $ 58,158 Restricted cash 865 2,620 2,901 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 516,789 $ 215,705 $ 61,059 |
Schedule of Restricted Cash and Cash Equivalents | Cash as reported on the consolidated statements of cash flows consists of the following (in thousands): January 31, 2020 2019 2018 Cash and cash equivalents $ 515,924 $ 213,085 $ 58,158 Restricted cash 865 2,620 2,901 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 516,789 $ 215,705 $ 61,059 |
Schedule of Property and Equipment, Useful Lives | Depreciation is computed using the straight-line method over the following estimated useful lives: Computer equipment 3 years Computer software 3 years Furniture and fixtures 5-7 years As of the dates specified below, property and equipment (in thousands) consisted of the following: January 31, 2020 2019 Computer equipment $ 22,513 $ 17,536 Computer software, purchased and developed 14,673 6,958 Furniture and fixtures 6,712 5,410 Leasehold improvements 4,501 4,158 Total property and equipment 48,399 34,062 Less: accumulated depreciation (21,418 ) (11,522 ) Total property and equipment, net $ 26,981 $ 22,540 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following tables present calculations for basic and diluted net loss per share (in thousands, except per share data): Year Ended January 31, 2020 2019 2018 Numerator: Net loss attributable to common shareholders $ (95,940 ) $ (53,885 ) $ (53,664 ) Denominator: Weighted-average common shares outstanding 112,991 83,141 18,273 Net loss per share, basic and diluted $ (0.85 ) $ (0.65 ) $ (2.94 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following outstanding shares of common stock equivalents (in thousands) as of the periods presented were excluded from the computation of diluted net loss per share attributable to common shareholders for the periods presented because the impact of including them would have been anti-dilutive: January 31, 2020 2019 2018 Convertible preferred shares (as converted) — — 68,480 Convertible preferred stock warrant — — 137 Shares subject to outstanding common stock awards 12,215 13,297 13,355 Shares issuable pursuant to the Employee Stock Purchase Plan 165 134 — Total potentially dilutive shares 12,380 13,431 81,972 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present information about the Company’s financial assets and liabilities that are measured at fair value and indicates the fair value hierarchy of the valuation inputs used (in thousands) as of: January 31, 2020 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 279,160 $ — $ — $ 279,160 Certificates of deposit — 50,585 — 50,585 Short-term investments: Certificates of deposit — 50,532 — 50,532 Total assets $ 279,160 $ 101,117 $ — $ 380,277 January 31, 2019 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 203,746 $ — $ — $ 203,746 Restricted cash: Certificates of deposit — 1,775 — 1,775 Total assets $ 203,746 $ 1,775 $ — $ 205,521 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Depreciation is computed using the straight-line method over the following estimated useful lives: Computer equipment 3 years Computer software 3 years Furniture and fixtures 5-7 years As of the dates specified below, property and equipment (in thousands) consisted of the following: January 31, 2020 2019 Computer equipment $ 22,513 $ 17,536 Computer software, purchased and developed 14,673 6,958 Furniture and fixtures 6,712 5,410 Leasehold improvements 4,501 4,158 Total property and equipment 48,399 34,062 Less: accumulated depreciation (21,418 ) (11,522 ) Total property and equipment, net $ 26,981 $ 22,540 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The major classes of assets and liabilities to which the Company preliminarily allocated the purchase price, net of the $0.2 million working capital adjustment, were as follows (in thousands): May 1, 2019 Cash $ 1,150 Current Assets 801 Intangible Assets 16,090 Goodwill 11,001 Current Liabilities (180 ) Deferred Revenue (1,030 ) Total $ 27,832 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The estimated useful lives and fair values of the identifiable intangible assets at acquisition date were as follows (dollars in thousands): Fair Value Expected Useful Life Software Technology $ 8,000 5 years Customer Relationships 7,990 8 years Trade Name 100 32 months Total intangible assets $ 16,090 |
Goodwill and Net Intangible A_2
Goodwill and Net Intangible Assets (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill during the twelve months ended January 31, 2020 were as follows (in thousands): Goodwill balance as of January 31, 2019 $ 5,496 Addition - acquisition of 10,000ft 11,181 Working capital adjustment - acquisition of 10,000ft (180 ) Goodwill balance as of January 31, 2020 $ 16,497 |
Schedule of Finite-Lived Intangible Assets | The following table presents the components of net intangible assets (in thousands): As of January 31, 2020 As of January 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired software technology $ 9,866 $ (2,325 ) $ 7,541 $ 1,866 $ (494 ) $ 1,372 Acquired customer relationships 8,350 (900 ) 7,450 360 (25 ) 335 Trade names 100 (28 ) 72 — — — Patents 170 (91 ) 79 170 (63 ) 107 Domain name 13 — 13 13 — 13 Total $ 18,499 $ (3,344 ) $ 15,155 $ 2,409 $ (582 ) $ 1,827 The components of intangible assets acquired as of the periods presented were as follows (in thousands): As of January 31, 2020 As of January 31, 2019 Net Carrying Amount Weighted Average Life (Years) Net Carrying Amount Weighted Average Life (Years) Acquired software technology $ 7,541 4.0 $ 1,372 2.3 Acquired customer relationships 7,450 7.1 335 2.9 Trade names 72 1.9 — — Total $ 15,063 5.5 $ 1,707 2.4 |
Schedule of Estimated Remaining Amortization Expense for Intangible Assets | As of January 31, 2020, estimated remaining amortization expense for the finite-lived intangible assets by fiscal year is as follows (in thousands): 2021 $ 3,358 2022 2,897 2023 2,608 2024 2,607 2025 1,406 Thereafter 2,266 Total $ 15,142 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following table includes a summary of the option activity during the year ended January 31, 2020 : Options Outstanding Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding at January 31, 2019 12,451,739 $ 5.72 8.0 $ 319,519 Granted 600,592 38.37 Exercised (3,536,988 ) 4.54 Forfeited or canceled (438,672 ) 8.99 Outstanding at January 31, 2020 9,076,671 8.18 7.3 365,766 Exercisable at January 31, 2020 4,863,428 4.82 6.8 212,357 Vested and expected to vest at January 31, 2020 8,659,579 7.87 7.3 351,644 |
Schedule of Restricted Stock Units Award Activity | The following table includes a summary of the RSU activity during the year ended January 31, 2020 : Number of Shares Underlying Outstanding RSUs Weighted-Average Grant-Date Fair Value per RSU Outstanding at January 31, 2019 845,199 $ 24.17 Granted 2,869,964 41.62 Vested (330,302 ) 23.01 Forfeited or canceled (246,531 ) 36.07 Outstanding at January 31, 2020 3,138,330 39.32 |
Schedule of Shares Available for Issuance Under ESPP | The following table includes a summary of shares available for issuance under our 2018 Plan and our 2018 ESPP during the year ended January 31, 2020 : Shares Available for Issuance 2018 Plan 2018 ESPP Balance at January 31, 2019 8,458,343 1,719,782 Authorized 5,248,572 1,049,714 Granted (3,470,556 ) (330,779 ) Forfeited 685,203 — Balance at January 31, 2020 10,921,562 2,438,717 |
Schedule of Fair Value Assumptions, Stock Options | The fair value of employee stock options and ESPP purchase rights was estimated using a Black-Scholes option pricing model with the following assumptions: Year Ended January 31, 2020 2019 2018 Employee Stock Options Risk-free interest rate 2.28%-2.59% 2.7%-2.9% 1.8%-2.6% Expected volatility 42.3%-42.5% 40.2%-40.8% 41.7%-46.0% Expected term (in years) 6.19-6.25 6.25 6.25 Expected dividend yield — % — % — % Employee Stock Purchase Plan Risk-free interest rate 1.9%-2.5% 2.0%-2.4% N/A Expected volatility 38.3%-51.1% 38.3%-42.2% N/A Expected term (in years) 0.49-0.50 0.33-0.49 N/A Expected dividend yield — % — % N/A |
Schedule of Fair Value Assumptions, ESPP | The fair value of employee stock options and ESPP purchase rights was estimated using a Black-Scholes option pricing model with the following assumptions: Year Ended January 31, 2020 2019 2018 Employee Stock Options Risk-free interest rate 2.28%-2.59% 2.7%-2.9% 1.8%-2.6% Expected volatility 42.3%-42.5% 40.2%-40.8% 41.7%-46.0% Expected term (in years) 6.19-6.25 6.25 6.25 Expected dividend yield — % — % — % Employee Stock Purchase Plan Risk-free interest rate 1.9%-2.5% 2.0%-2.4% N/A Expected volatility 38.3%-51.1% 38.3%-42.2% N/A Expected term (in years) 0.49-0.50 0.33-0.49 N/A Expected dividend yield — % — % N/A |
Schedule of Share-based Compensation Expense | Share-based compensation expense included in the consolidated statements of operations was as follows (in thousands): Year Ended January 31, 2020 2019 2018 Cost of subscription revenue $ 1,392 $ 346 $ 96 Cost of professional services revenue 1,259 466 67 Research and development 14,260 5,873 6,029 Sales and marketing 12,937 5,163 1,707 General and administrative 7,716 4,055 10,565 Total share-based compensation $ 37,564 $ 15,903 $ 18,464 Share-based compensation expense related to the 2017 Tender Offer, which is included in the table above, was as follows (in thousands): Year Ended January 31, 2020 2019 2018 Cost of subscription revenue $ — $ — $ 53 Cost of professional services revenue — — 9 Research and development — — 5,124 Sales and marketing — — 583 General and administrative — — 9,701 Total share-based compensation expense $ — $ — $ 15,470 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | U.S. and international components of loss before provision for income taxes were as follows (in thousands): Year Ended January 31, 2020 2019 2018 United States $ (96,810 ) $ (53,939 ) $ (49,303 ) Foreign 984 347 (110 ) Loss before provision for income taxes $ (95,826 ) $ (53,592 ) $ (49,413 ) The expense (benefit) for income taxes consisted of (in thousands): Year Ended January 31, 2020 2019 2018 Current: Federal $ — $ — $ — State 85 34 40 Foreign 17 69 — Total current provision for income taxes 102 103 40 Deferred and other: Federal — 203 (302 ) State — — (45 ) Foreign 12 (13 ) — Total deferred tax expense (benefit) 12 190 (347 ) Total tax expense (benefit) $ 114 $ 293 $ (307 ) |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of federal statutory income tax to the Company’s provision for income taxes is as follows (in thousands): Year Ended January 31, 2020 2019 2018 Expected provision at statutory federal rate $ (20,124 ) $ (11,254 ) $ (16,267 ) Tax credits (5,798 ) (2,408 ) (1,327 ) Change in valuation allowance 47,412 17,487 1,528 Share-based compensation (22,009 ) (4,631 ) 4,430 Impact of tax reform — — 11,125 Other 633 1,099 204 Total income tax provision (benefit) $ 114 $ 293 $ (307 ) |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences and related deferred tax assets and liabilities as of January 31, 2020 and 2019 were as follows (in thousands): January 31, 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 49,433 $ 18,972 Deferred revenue 39,542 23,146 Lease liabilities 14,243 — Tax credits 12,094 6,340 Share-based compensation 6,661 1,776 Accrued compensation 3,308 1,963 Other 625 949 Total deferred tax assets 125,906 53,146 Valuation allowance (100,240 ) (45,761 ) Total deferred tax assets, net 25,666 7,385 Deferred tax liabilities: Lease right-of-use assets (13,475 ) — Capitalized commissions (11,724 ) (6,955 ) Property and equipment (431 ) — Intangibles (15 ) (398 ) Total deferred tax liabilities (25,645 ) (7,353 ) Net deferred tax assets $ 21 $ 32 |
Reconciliation of Amounts of Unrecognized Tax Benefits | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits: Year Ended January 31, 2020 2019 2018 Balance, beginning of the year $ 1,416 $ 683 $ — Increases to tax positions taken during the current year 1,850 808 360 Increases to tax positions taken in prior years 73 — 323 Decreases to tax positions taken in prior years — (75 ) — Balance, end of year $ 3,339 $ 1,416 $ 683 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Leases [Abstract] | |
Lease, Cost | Other information related to leases was as follows (dollars in thousands): Twelve Months Ended Supplemental cash flow information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows related to operating leases* $ 9,990 Operating cash flows related to finance leases 243 Financing cash flows related to finance leases 4,167 Right-of-use assets obtained in exchange for lease obligations: Operating leases 12,173 Finance leases 2,364 Weighted-average remaining lease term (in years): Operating leases 5.8 Finance leases 1.8 Weighted-average discount rate: Operating leases 5.9 % Finance leases 4.7 % *Includes cash paid for lease liability accretion of $4.4 million . The components of lease expense recorded in the consolidated statements of operations and comprehensive loss were as follows (in thousands): Twelve Months Ended Operating lease cost $ 11,494 Finance lease cost: Amortization of assets 4,195 Interest on lease liabilities 250 Short-term lease cost 845 Variable lease cost 1,865 Total lease costs $ 18,649 |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows (in thousands): Financial Statement Line Item January 31, 2020 Assets: Operating lease assets Operating lease right-of-use assets $ 57,590 Finance lease assets Property and equipment, net 3,939 Total leased assets $ 61,529 Liabilities: Current Operating lease liabilities Operating lease liabilities, current $ 13,020 Finance lease liabilities Finance lease liabilities, current 2,465 Non-current Operating lease liabilities Operating lease liabilities, non-current 47,913 Finance lease liabilities Finance lease liabilities, non-current 1,664 Total lease liabilities $ 65,062 |
Schedule of Future Minimum Rental Payment for Finance Leases | As of January 31, 2020 , remaining maturities of lease liabilities were as follows (in thousands): Operating Leases Finance Leases Fiscal 2021 $ 13,345 $ 2,599 Fiscal 2022 12,510 1,286 Fiscal 2023 11,545 426 Fiscal 2024 11,812 — Fiscal 2025 10,102 — Thereafter 12,961 — Total lease payments $ 72,275 $ 4,311 Less: imputed interest (11,342 ) (182 ) Total $ 60,933 $ 4,129 |
Schedule of Future Minimum Rental Payments for Operating Leases | As of January 31, 2020 , remaining maturities of lease liabilities were as follows (in thousands): Operating Leases Finance Leases Fiscal 2021 $ 13,345 $ 2,599 Fiscal 2022 12,510 1,286 Fiscal 2023 11,545 426 Fiscal 2024 11,812 — Fiscal 2025 10,102 — Thereafter 12,961 — Total lease payments $ 72,275 $ 4,311 Less: imputed interest (11,342 ) (182 ) Total $ 60,933 $ 4,129 |
Schedule of Future Minimum Lease Payments | As of January 31, 2019 , future minimum annual lease payments (in thousands) related to the lease agreements mentioned above were as follows: Operating Leases Capital Leases Total Fiscal 2020 $ 10,255 $ 3,970 $ 14,225 Fiscal 2021 11,121 1,776 12,897 Fiscal 2022 11,293 463 11,756 Fiscal 2023 11,536 — 11,536 Fiscal 2024 11,812 — 11,812 Thereafter 23,064 — 23,064 Total minimum lease payments $ 79,081 $ 6,209 $ 85,290 Less: amount representing interest 277 Present value of capital lease obligations $ 5,932 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographical Area | Revenue by geographic location is determined by the location of the Company’s customers. The following table sets forth revenue (in thousands) by geographic area: Year Ended January 31, 2020 2019 2018 United States $ 214,492 $ 135,761 $ 81,480 EMEA 29,246 21,087 14,654 Asia Pacific 12,969 11,863 9,181 Americas other than the United States 14,175 9,011 5,938 Total $ 270,882 $ 177,722 $ 111,253 |
Overview and Basis of Present_2
Overview and Basis of Presentation (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 19, 2019 | Jun. 14, 2019 | May 01, 2018 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 |
Class of Stock [Line Items] | ||||||
Proceeds from initial public offering of common stock, net of underwriters' discounts and commissions | $ 0 | $ 163,844 | $ 0 | |||
Preferred stock authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | |||
Accumulated deficit | $ (256,458) | $ (160,518) | ||||
Common Class A | ||||||
Class of Stock [Line Items] | ||||||
Shares issued per common share converted (in shares) | 1 | |||||
Threshold percentage of outstanding stock | 15.00% | |||||
Common stock authorized (in shares) | 500,000,000 | 500,000,000 | 500,000,000 | |||
Common Class B | ||||||
Class of Stock [Line Items] | ||||||
Number of shares issued in conversion (in shares) | 68,500,000 | |||||
Common stock authorized (in shares) | 500,000,000 | 500,000,000 | 500,000,000 | |||
Public Equity Offering | ||||||
Class of Stock [Line Items] | ||||||
Consideration received on transaction | $ 379,000 | |||||
Underwriting discounts and commissions | 12,800 | |||||
Payment of stock issuance costs, other | $ 900 | |||||
Public Equity Offering | Common Class A | ||||||
Class of Stock [Line Items] | ||||||
Shares issued and sold (in shares) | 9,025,000 | |||||
Offering price (in dollars per share) | $ 43.50 | |||||
Public Equity Offering - Selling Shareholders | Common Class A | ||||||
Class of Stock [Line Items] | ||||||
Shares issued and sold (in shares) | 5,810,000 | |||||
IPO | Common Class A | ||||||
Class of Stock [Line Items] | ||||||
Shares issued and sold (in shares) | 11,745,088 | |||||
Offering price (in dollars per share) | $ 15 | |||||
Proceeds from initial public offering of common stock, net of underwriters' discounts and commissions | $ 160,400 | |||||
Underwriting discounts and commissions | 12,300 | |||||
Other issuance costs | $ 3,400 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Provision for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | $ 1,234 | $ 457 | $ 104 |
Write-offs | (1,629) | (849) | |
Additions, net | 3,384 | 1,626 | 353 |
Balance at end of period | $ 2,989 | $ 1,234 | $ 457 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands | 12 Months Ended | |||||
Jan. 31, 2020USD ($)segment | Jan. 31, 2019USD ($) | Jan. 31, 2018USD ($) | Jun. 14, 2019USD ($) | Feb. 01, 2019USD ($) | May 01, 2018USD ($) | |
Lessee, Lease, Description [Line Items] | ||||||
Payment period | 30 days | |||||
Number of operating segments | segment | 1 | |||||
Security deposits | $ 800 | $ 500 | ||||
Internal use software costs capitalized | $ 8,100 | 3,500 | ||||
Costs incurred during development for platform to sell subscriptions | 5,800 | 1,500 | ||||
Amortization expense of capitalized internal-use software costs | 2,300 | 1,000 | 200 | |||
Net self insurance reserve estimate | 900 | 800 | ||||
Advertising and marketing expenses | 35,500 | 20,600 | 14,800 | |||
Deferred offering costs capitalized | $ 900 | $ 3,400 | ||||
Operating lease right-of-use assets | 57,590 | |||||
Operating lease, liability | 60,933 | |||||
Investing activity increase | (90,043) | (13,784) | (809) | |||
Financial Standby Letter of Credit | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Irrevocable letters of credit | $ 900 | $ 1,800 | $ 2,400 | |||
Accounting Standards Update 2016-02 | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Operating lease right-of-use assets | $ 53,400 | |||||
Operating lease, liability | 55,300 | |||||
Deferred rent credit | $ 1,900 | |||||
Software | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Software useful life | 3 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 515,924 | $ 213,085 | $ 58,158 | |
Restricted cash | 865 | 2,620 | 2,901 | |
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows | $ 516,789 | $ 215,705 | $ 61,059 | $ 24,013 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Useful Lives (Details) | 12 Months Ended |
Jan. 31, 2020 | |
Computer equipment | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 3 years |
Computer software | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 3 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 5 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 7 years |
Revenue from Contracts with C_2
Revenue from Contracts with Customers - Deferred Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Revenue from External Customer [Line Items] | |||
Deferred revenue | $ 166.9 | ||
Subscription | |||
Revenue from External Customer [Line Items] | |||
Revenue recognized included in deferred revenue | 93 | $ 55.3 | $ 32 |
Deferred revenue | 163 | ||
Professional services | |||
Revenue from External Customer [Line Items] | |||
Revenue recognized included in deferred revenue | 2.1 | $ 1.5 | $ 0.6 |
Deferred revenue | $ 3.9 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Revenue Recognition (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-02-01 | Jan. 31, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percentage of revenue related to remaining performance obligations | 96.00% |
Period of expected timing of satisfaction related to remaining performance obligations | 12 months |
Deferred Commissions (Details)
Deferred Commissions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Revenue Recognition and Deferred Revenue [Abstract] | |||
Deferred commissions | $ 48,255 | $ 29,014 | |
Amortization of deferred commission costs | $ 19,806 | $ 10,770 | $ 4,989 |
Deferred commissions amortized period | 3 years |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Numerator: | |||
Net loss attributable to common shareholders | $ (95,940) | $ (53,885) | $ (53,664) |
Denominator: | |||
Weighted-average common shares outstanding (in shares) | 112,991 | 83,141 | 18,273 |
Net loss per share, basic and diluted (in dollars per share) | $ (0.85) | $ (0.65) | $ (2.94) |
Net Loss Per Share - Schedule_2
Net Loss Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total potentially dilutive shares | 12,380 | 13,431 | 81,972 |
Total all series | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total potentially dilutive shares | 0 | 0 | 68,480 |
Shares subject to outstanding common stock awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total potentially dilutive shares | 12,215 | 13,297 | 13,355 |
Shares issuable pursuant to the Employee Stock Purchase Plan | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total potentially dilutive shares | 165 | 134 | 0 |
Total all series | Convertible preferred stock warrant | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total potentially dilutive shares | 0 | 0 | 137 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Cash equivalents: | ||
Total assets | $ 380,277 | $ 205,521 |
Level 1 | ||
Cash equivalents: | ||
Total assets | 279,160 | 203,746 |
Level 2 | ||
Cash equivalents: | ||
Total assets | 101,117 | 1,775 |
Level 3 | ||
Cash equivalents: | ||
Total assets | 0 | 0 |
Money market funds | ||
Cash equivalents: | ||
Cash equivalents and restricted cash | 279,160 | 203,746 |
Money market funds | Level 1 | ||
Cash equivalents: | ||
Cash equivalents and restricted cash | 279,160 | 203,746 |
Money market funds | Level 2 | ||
Cash equivalents: | ||
Cash equivalents and restricted cash | 0 | 0 |
Money market funds | Level 3 | ||
Cash equivalents: | ||
Cash equivalents and restricted cash | 0 | 0 |
Certificates of deposit | ||
Cash equivalents: | ||
Cash equivalents and restricted cash | 50,585 | 1,775 |
Short-term investments | 50,532 | |
Certificates of deposit | Level 1 | ||
Cash equivalents: | ||
Cash equivalents and restricted cash | 0 | 0 |
Short-term investments | 0 | |
Certificates of deposit | Level 2 | ||
Cash equivalents: | ||
Cash equivalents and restricted cash | 50,585 | 1,775 |
Short-term investments | 50,532 | |
Certificates of deposit | Level 3 | ||
Cash equivalents: | ||
Cash equivalents and restricted cash | 0 | $ 0 |
Short-term investments | $ 0 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $ 48,399 | $ 34,062 | |
Less: accumulated depreciation | (21,418) | (11,522) | |
Total property and equipment, net | 26,981 | 22,540 | |
Depreciation expense | 10,687 | 7,194 | $ 4,019 |
Finance lease right-of-use asset, before accumulated depreciation and amortization | 14,200 | ||
Capital leases | 11,800 | ||
Finance lease right-of-use asset, accumulated depreciation and amortization | 10,200 | ||
Accumulated depreciation on capital leases | 6,100 | ||
Depreciation expense on finance leases | 4,300 | ||
Depreciation expense on capital leases | 3,600 | $ 2,200 | |
Computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 22,513 | 17,536 | |
Computer software, purchased and developed | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 14,673 | 6,958 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 6,712 | 5,410 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $ 4,501 | $ 4,158 |
Business Combinations Narrative
Business Combinations Narrative (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | May 01, 2019 | Jan. 11, 2019 | Jan. 31, 2019 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 16,497 | $ 5,496 | ||
Intangible Assets | 15,063 | 1,707 | ||
Acquired software technology | ||||
Business Acquisition [Line Items] | ||||
Intangible Assets | 7,541 | 1,372 | ||
Acquired customer relationships | ||||
Business Acquisition [Line Items] | ||||
Intangible Assets | $ 7,450 | $ 335 | ||
Artefact Product Group, LLC. | ||||
Business Acquisition [Line Items] | ||||
Percentage of voting interests acquired | 100.00% | |||
Payments to acquire businesses, gross | $ 27,800 | |||
Working capital adjustments | 200 | |||
Consideration transferred, held in escrow | 2,800 | |||
Merger agreement, escrow term | 3 months | |||
Goodwill | 11,001 | |||
Intangible Assets | $ 16,090 | |||
TernPro, Inc. | ||||
Business Acquisition [Line Items] | ||||
Percentage of voting interests acquired | 100.00% | |||
Payments to acquire businesses, gross | $ 6,000 | |||
Goodwill | 5,200 | |||
Intangible Assets | 800 | |||
Recognized identifiable assets acquired and liabilities assumed, other assets, net | 100 | |||
Contingent consideration, liability, noncurrent | 1,000 | |||
Contingent consideration, liability, current | 1,000 | |||
TernPro, Inc. | Acquired software technology | ||||
Business Acquisition [Line Items] | ||||
Intangible Assets | 500 | |||
TernPro, Inc. | Acquired customer relationships | ||||
Business Acquisition [Line Items] | ||||
Intangible Assets | $ 300 |
Business Combinations Assets an
Business Combinations Assets and Liabilities Acquired (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | May 01, 2019 | Jan. 31, 2019 |
Business Acquisition [Line Items] | |||
Intangible Assets | $ 15,063 | $ 1,707 | |
Goodwill | $ 16,497 | $ 5,496 | |
Artefact Product Group, LLC. | |||
Business Acquisition [Line Items] | |||
Cash | $ 1,150 | ||
Current Assets | 801 | ||
Intangible Assets | 16,090 | ||
Goodwill | 11,001 | ||
Current Liabilities | (180) | ||
Deferred Revenue | (1,030) | ||
Total | $ 27,832 |
Business Combinations Intangibl
Business Combinations Intangible Assets Acquired (Details) - USD ($) $ in Thousands | May 01, 2019 | Jan. 31, 2020 | Jan. 31, 2019 |
Business Acquisition [Line Items] | |||
Expected Useful Life | 5 years 6 months | 2 years 4 months 24 days | |
Software Technology | |||
Business Acquisition [Line Items] | |||
Expected Useful Life | 4 years | 2 years 3 months 18 days | |
Customer Relationships | |||
Business Acquisition [Line Items] | |||
Expected Useful Life | 7 years 1 month 6 days | 2 years 10 months 24 days | |
Trade Name | |||
Business Acquisition [Line Items] | |||
Expected Useful Life | 1 year 10 months 24 days | 0 years | |
Artefact Product Group, LLC. | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 16,090 | ||
Artefact Product Group, LLC. | Software Technology | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 8,000 | ||
Expected Useful Life | 5 years | ||
Artefact Product Group, LLC. | Customer Relationships | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 7,990 | ||
Expected Useful Life | 8 years | ||
Artefact Product Group, LLC. | Trade Name | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 100 | ||
Expected Useful Life | 32 months |
Goodwill and Net Intangible A_3
Goodwill and Net Intangible Assets - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill impairments | $ 0 | $ 0 | $ 0 |
Amortization expense | $ 2,762,000 | $ 510,000 | $ 57,000 |
Goodwill and Net Intangible A_4
Goodwill and Net Intangible Assets - Changes in Carrying Amount of Goodwill (Details) $ in Thousands | 12 Months Ended |
Jan. 31, 2020USD ($) | |
Goodwill [Roll Forward] | |
Goodwill beginning balance | $ 5,496 |
Addition - acquisition of 10,000ft | 11,181 |
Working capital adjustment - acquisition of 10,000ft | (180) |
Goodwill ending balance | $ 16,497 |
Goodwill and Net Intangible A_5
Goodwill and Net Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 18,499 | $ 2,409 |
Less: accumulated amortization | (3,344) | (582) |
Total intangible assets, net | 15,155 | 1,827 |
Net Carrying Amount | $ 15,063 | $ 1,707 |
Weighted Average Life (Years) | 5 years 6 months | 2 years 4 months 24 days |
Acquired software technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 9,866 | $ 1,866 |
Less: accumulated amortization | (2,325) | (494) |
Total intangible assets, net | 7,541 | 1,372 |
Net Carrying Amount | $ 7,541 | $ 1,372 |
Weighted Average Life (Years) | 4 years | 2 years 3 months 18 days |
Acquired customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 8,350 | $ 360 |
Less: accumulated amortization | (900) | (25) |
Total intangible assets, net | 7,450 | 335 |
Net Carrying Amount | $ 7,450 | $ 335 |
Weighted Average Life (Years) | 7 years 1 month 6 days | 2 years 10 months 24 days |
Trade Name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 100 | $ 0 |
Less: accumulated amortization | (28) | 0 |
Total intangible assets, net | 72 | 0 |
Net Carrying Amount | $ 72 | $ 0 |
Weighted Average Life (Years) | 1 year 10 months 24 days | 0 years |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 170 | $ 170 |
Less: accumulated amortization | (91) | (63) |
Total intangible assets, net | 79 | 107 |
Domain name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 13 | 13 |
Less: accumulated amortization | 0 | 0 |
Total intangible assets, net | $ 13 | $ 13 |
Goodwill and Net Intangible A_6
Goodwill and Net Intangible Assets - Estimated Remaining Amortization Expense (Details) $ in Thousands | Jan. 31, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2021 | $ 3,358 |
2022 | 2,897 |
2023 | 2,608 |
2024 | 2,607 |
2025 | 1,406 |
Thereafter | 2,266 |
Total | $ 15,142 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020USD ($)purchase_period$ / sharesshares | Jan. 31, 2019USD ($)$ / sharesshares | Jan. 31, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation | $ 37,564 | $ 15,903 | $ 18,464 |
Deemed dividend | 0 | $ 0 | $ 4,558 |
Unrecognized share based compensation expense | $ 124,100 | ||
Unrecognized share based compensation expense, period for recognition | 3 years 1 month 6 days | ||
2018 ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Offering period | 6 months | ||
Number of purchase periods | purchase_period | 1 | ||
Purchase period | 6 months | ||
Purchase price percent | 85.00% | ||
Maximum number of shares authorized (in shares) | shares | 2,438,717 | 1,719,782 | |
Share-based compensation | $ 5,400 | ||
2018 ESPP | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payroll deduction percent of base cash compensation | 15.00% | ||
Common Class A | 2018 ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period in which shares authorized increase | 10 years | ||
Common Class A | 2018 ESPP | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares authorized (in shares) | shares | 20,400,000 | ||
Common Class A and B | 2018 ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percent of shares outstanding | 1.00% | ||
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Expiration period | 10 years | ||
Weighted average grant date fair value, stock options (in dollars per share) | $ / shares | $ 17.11 | $ 4.66 | $ 2.36 |
Fair value of stock options vested | $ 11,100 | $ 5,800 | $ 2,400 |
Intrinsic value of options exercised | $ 136,600 | $ 66,700 | 17,800 |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Weighted-average grant date fair value, RSU (in dollars per share) | $ / shares | $ 41.62 | $ 26.12 | |
2017 Tender Offer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation | $ 0 | $ 0 | $ 15,470 |
Shares issued and sold (in shares) | shares | 6,477,843 | ||
Total purchase price | $ 55,000 | ||
Deemed dividend | $ 4,600 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Options (Details) - Stock Option - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Options Outstanding | ||
Outstanding beginning balance (in shares) | 12,451,739 | |
Granted (in shares) | 600,592 | |
Exercised (in shares) | (3,536,988) | |
Forfeited or canceled (in shares) | (438,672) | |
Outstanding ending balance (in shares) | 9,076,671 | 12,451,739 |
Exercisable (in shares) | 4,863,428 | |
Vested and expected to vest (in shares) | 8,659,579 | |
Weighted-Average Exercise Price | ||
Outstanding beginning balance (in dollars per share) | $ 5.72 | |
Granted (in dollars per share) | 38.37 | |
Exercised (in dollars per share) | 4.54 | |
Forfeited or canceled (in dollars per share) | 8.99 | |
Outstanding ending balance (in dollars per share) | 8.18 | $ 5.72 |
Exercisable (in dollars per share) | 4.82 | |
Vested and expected to vest (in dollars per share) | $ 7.87 | |
Weighted-Average Remaining Contractual Term (years) | ||
Outstanding (in years) | 7 years 3 months 18 days | 8 years |
Exercisable (in years) | 6 years 9 months 18 days | |
Vested and expected to vest (in years) | 7 years 3 months 18 days | |
Aggregate Intrinsic Value (in thousands) | ||
Outstanding | $ 365,766 | $ 319,519 |
Exercisable | 212,357 | |
Vested and expected to vest | $ 351,644 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Units (Details) - RSUs - $ / shares | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Number of Shares Underlying Outstanding RSUs | ||
Outstanding beginning balance (in shares) | 845,199 | |
Granted (in shares) | 2,869,964 | |
Vested (in shares) | (330,302) | |
Forfeited or canceled (in shares) | (246,531) | |
Outstanding ending balance (in shares) | 3,138,330 | 845,199 |
Weighted-Average Grant-Date Fair Value per RSU | ||
Outstanding beginning balance (in dollars per share) | $ 24.17 | |
Granted (in dollars per share) | 41.62 | $ 26.12 |
Vested (in dollars per share) | 23.01 | |
Forfeited or canceled (in dollars per share) | 36.07 | |
Outstanding ending balance (in dollars per share) | $ 39.32 | $ 24.17 |
Share-Based Compensation - Empl
Share-Based Compensation - Employee Stock Purchase Plan (Details) | 12 Months Ended |
Jan. 31, 2020shares | |
2018 Plan | |
Shares Available for Issuance Under ESPP | |
Balance at beginning of period (in shares) | 8,458,343 |
Authorized (in shares) | 5,248,572 |
Granted (in shares) | (3,470,556) |
Forfeited (in shares) | 685,203 |
Balance at end of period (in shares) | 10,921,562 |
2018 ESPP | |
Shares Available for Issuance Under ESPP | |
Balance at beginning of period (in shares) | 1,719,782 |
Authorized (in shares) | 1,049,714 |
Granted (in shares) | (330,779) |
Forfeited (in shares) | 0 |
Balance at end of period (in shares) | 2,438,717 |
Share-Based Compensation - Valu
Share-Based Compensation - Valuation Assumptions (Details) | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 years 3 months | 6 years 3 months | |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Stock Option | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.28% | 2.70% | 1.80% |
Expected volatility | 42.30% | 40.20% | 41.70% |
Expected term (in years) | 6 years 2 months 9 days | ||
Stock Option | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.59% | 2.90% | 2.60% |
Expected volatility | 42.50% | 40.80% | 46.00% |
Expected term (in years) | 6 years 3 months | ||
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | 0.00% | |
Employee Stock Purchase Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.90% | 2.00% | |
Expected volatility | 38.30% | 38.30% | |
Expected term (in years) | 5 months 27 days | 3 months 29 days | |
Employee Stock Purchase Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.50% | 2.40% | |
Expected volatility | 51.10% | 42.20% | |
Expected term (in years) | 6 months | 5 months 27 days |
Share-Based Compensation - Shar
Share-Based Compensation - Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation | $ 37,564 | $ 15,903 | $ 18,464 |
Cost of subscription revenue | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation | 1,392 | 346 | 96 |
Cost of professional services revenue | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation | 1,259 | 466 | 67 |
Research and development | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation | 14,260 | 5,873 | 6,029 |
Sales and marketing | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation | 12,937 | 5,163 | 1,707 |
General and administrative | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation | 7,716 | 4,055 | 10,565 |
2017 Tender Offer | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation | 0 | 0 | 15,470 |
2017 Tender Offer | Cost of subscription revenue | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation | 0 | 0 | 53 |
2017 Tender Offer | Cost of professional services revenue | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation | 0 | 0 | 9 |
2017 Tender Offer | Research and development | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation | 0 | 0 | 5,124 |
2017 Tender Offer | Sales and marketing | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation | 0 | 0 | 583 |
2017 Tender Offer | General and administrative | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation | $ 0 | $ 0 | $ 9,701 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Blended tax rate | 32.90% | |||
Tax Cuts and Jobs Act, reduction to deferred tax assets | $ 11,100 | |||
Federal tax net operating loss carryforward | $ 205,600 | $ 82,300 | ||
Tax credit carryforward for income tax purposes | 12,100 | 6,300 | ||
Increase in valuation allowance | 54,500 | |||
Unrecognized tax benefits | 3,339 | 1,416 | 683 | $ 0 |
Unrecognized tax benefits that would impact effective tax rate | 3,300 | 1,400 | ||
Penalties and interest expense | $ 0 | $ 0 | $ 0 |
Income Taxes - Loss Before Prov
Income Taxes - Loss Before Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (96,810) | $ (53,939) | $ (49,303) |
Foreign | 984 | 347 | (110) |
Loss before provision for income taxes | $ (95,826) | $ (53,592) | $ (49,413) |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Current: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 85 | 34 | 40 |
Foreign | 17 | 69 | 0 |
Total current provision for income taxes | 102 | 103 | 40 |
Deferred and other: | |||
Federal | 0 | 203 | (302) |
State | 0 | 0 | (45) |
Foreign | 12 | (13) | 0 |
Total deferred tax expense (benefit) | 12 | 190 | (347) |
Total income tax provision (benefit) | $ 114 | $ 293 | $ (307) |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Expected provision at statutory federal rate | $ (20,124) | $ (11,254) | $ (16,267) |
Tax credits | (5,798) | (2,408) | (1,327) |
Change in valuation allowance | 47,412 | 17,487 | 1,528 |
Share-based compensation | (22,009) | (4,631) | 4,430 |
Impact of tax reform | 0 | 0 | 11,125 |
Other | 633 | 1,099 | 204 |
Total income tax provision (benefit) | $ 114 | $ 293 | $ (307) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 49,433 | $ 18,972 |
Deferred revenue | 39,542 | 23,146 |
Lease liabilities | 14,243 | |
Tax credits | 12,094 | 6,340 |
Share-based compensation | 6,661 | 1,776 |
Accrued compensation | 3,308 | 1,963 |
Other | 625 | 949 |
Total deferred tax assets | 125,906 | 53,146 |
Valuation allowance | (100,240) | (45,761) |
Total deferred tax assets, net | 25,666 | 7,385 |
Lease right-of-use assets | (13,475) | |
Deferred tax liabilities: | ||
Capitalized commissions | (11,724) | (6,955) |
Property and equipment | (431) | 0 |
Intangibles | (15) | (398) |
Total deferred tax liabilities | (25,645) | (7,353) |
Net deferred tax assets | $ 21 | $ 32 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, beginning of the year | $ 1,416 | $ 683 | $ 0 |
Increases to tax positions taken during the current year | 1,850 | 808 | 360 |
Increases to tax positions taken in prior years | 73 | 0 | 323 |
Decreases to tax positions taken in prior years | 0 | (75) | 0 |
Balance, end of year | $ 3,339 | $ 1,416 | $ 683 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Lessee, Lease, Description [Line Items] | |||
Future noncancellable lease payments | $ 42.3 | ||
Rent expense and related expenses | $ 8.9 | $ 5 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term (in years) | 1 year | ||
Term of contract for lease not yet commenced (in years) | 7 years | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term (in years) | 7 years | ||
Option to extend lease (in years) | 5 years | ||
Term of contract for lease not yet commenced (in years) | 9 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) $ in Thousands | 12 Months Ended |
Jan. 31, 2020USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 11,494 |
Finance lease cost: | |
Amortization of assets | 4,195 |
Interest on lease liabilities | 250 |
Short-term lease cost | 845 |
Variable lease cost | 1,865 |
Total lease costs | $ 18,649 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) $ in Thousands | Jan. 31, 2020USD ($) |
Assets: | |
Operating lease assets | $ 57,590 |
Finance lease assets | 3,939 |
Total leased assets | 61,529 |
Current | |
Operating lease liabilities | 13,020 |
Finance lease liabilities | 2,465 |
Non-current | |
Operating lease liabilities | 47,913 |
Finance lease liabilities | 1,664 |
Total lease liabilities | $ 65,062 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Thousands | 12 Months Ended |
Jan. 31, 2020USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows related to operating leases | $ 9,990 |
Operating cash flows related to finance leases | 243 |
Financing cash flows related to finance leases | 4,167 |
Right-of-use assets obtained in exchange for lease obligations: | |
Operating leases | 12,173 |
Finance leases | $ 2,364 |
Weighted-average remaining lease term (in years): | |
Operating leases | 5 years 9 months 18 days |
Finance leases | 1 year 9 months 18 days |
Weighted-average discount rate: | |
Operating leases | 5.90% |
Finance leases | 4.70% |
Cash paid for lease liability accretion | $ 4,400 |
Leases - Schedule of Future Pay
Leases - Schedule of Future Payments for Operating and Finance Leases (Details) $ in Thousands | Jan. 31, 2020USD ($) |
Operating Leases | |
Fiscal 2021 | $ 13,345 |
Fiscal 2022 | 12,510 |
Fiscal 2023 | 11,545 |
Fiscal 2024 | 11,812 |
Fiscal 2025 | 10,102 |
Thereafter | 12,961 |
Total lease payments | 72,275 |
Less: imputed interest | (11,342) |
Total | 60,933 |
Finance Leases | |
Fiscal 2021 | 2,599 |
Fiscal 2022 | 1,286 |
Fiscal 2023 | 426 |
Fiscal 2024 | 0 |
Fiscal 2025 | 0 |
Thereafter | 0 |
Total lease payments | 4,311 |
Less: imputed interest | (182) |
Total | $ 4,129 |
Leases Leases - Schedule of Fut
Leases Leases - Schedule of Future Minimum Lease Payments (Details) $ in Thousands | Jan. 31, 2019USD ($) |
Operating Leases | |
Fiscal 2020 | $ 10,255 |
Fiscal 2021 | 11,121 |
Fiscal 2022 | 11,293 |
Fiscal 2023 | 11,536 |
Fiscal 2024 | 11,812 |
Thereafter | 23,064 |
Total minimum lease payments | 79,081 |
Capital Leases | |
Fiscal 2020 | 3,970 |
Fiscal 2021 | 1,776 |
Fiscal 2022 | 463 |
Fiscal 2023 | 0 |
Fiscal 2024 | 0 |
Thereafter | 0 |
Total minimum lease payments | 6,209 |
Less: amount representing interest | 277 |
Present value of capital lease obligations | 5,932 |
Total | |
Fiscal 2020 | 14,225 |
Fiscal 2021 | 12,897 |
Fiscal 2022 | 11,756 |
Fiscal 2023 | 11,536 |
Fiscal 2024 | 11,812 |
Thereafter | 23,064 |
Total minimum lease payments | $ 85,290 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | 12 Months Ended |
Jan. 31, 2020USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase commitment, period | 3 years |
Commitment with cloud-based hosting service provider | $ 15 |
Commitment with cloud-based hosting service provider, due in 2020 | 8.5 |
Commitment with cloud-based hosting service provider due in 2021 | $ 5 |
401(k) and Pension Plans (Detai
401(k) and Pension Plans (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Employer contributions to 401(k) plan | $ 0 | $ 0 | $ 0 |
Defined benefit plan, contributions by employer | $ 0 | $ 0 | $ 0 |
Related Party Transactions Narr
Related Party Transactions Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Related Party Transactions [Abstract] | |||
Related party transaction, amounts of transaction | $ 0 | $ 0 | $ 0 |
Geographic Information Revenue
Geographic Information Revenue by Geographic Location (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 270,882 | $ 177,722 | $ 111,253 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 214,492 | 135,761 | 81,480 |
EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 29,246 | 21,087 | 14,654 |
Asia Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 12,969 | 11,863 | 9,181 |
Americas other than the United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 14,175 | $ 9,011 | $ 5,938 |
Geographic Information Narrativ
Geographic Information Narrative (Details) - USD ($) | Jan. 31, 2020 | Jan. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 26,981,000 | $ 22,540,000 |
Americas Excluding U.S. | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 0 | $ 0 |
Subsequent Events Narrative (De
Subsequent Events Narrative (Details) $ in Millions | Jan. 31, 2020USD ($) |
Subsequent Event [Line Items] | |
Certificates of deposit | $ 101.1 |
Cash and Cash Equivalents | |
Subsequent Event [Line Items] | |
Certificates of deposit | 50.6 |
Short-term Investments | |
Subsequent Event [Line Items] | |
Certificates of deposit | $ 50.5 |