Cover
Cover - shares shares in Millions | 3 Months Ended | |
Apr. 30, 2021 | May 31, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-38451 | |
Entity Registrant Name | Zuora, Inc | |
Entity Central Index Key | 0001423774 | |
Current Fiscal Year End Date | --01-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-5530976 | |
Entity Address, Address Line One | 101 Redwood Shores Parkway | |
Entity Address, City or Town | Redwood City | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94065 | |
City Area Code | 888 | |
Local Phone Number | 976-9056 | |
Title of 12(b) Security | Class A common stock, par value $0.0001 per share | |
Trading Symbol | ZUO | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Class A common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 111.4 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 10.9 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 30, 2021 | Jan. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 101,116 | $ 94,110 |
Short-term investments | 96,282 | 92,484 |
Accounts receivable, net of allowance for credit losses of $5,827 and $4,522 as of April 30, 2021 and January 31, 2021, respectively | 59,484 | 78,860 |
Deferred commissions, current portion | 13,160 | 12,712 |
Prepaid expenses and other current assets | 16,590 | 15,574 |
Total current assets | 286,632 | 293,740 |
Property and equipment, net | 32,393 | 33,369 |
Operating lease right-of-use assets | 48,666 | 47,085 |
Purchased intangibles, net | 3,505 | 3,928 |
Deferred commissions, net of current portion | 21,681 | 21,905 |
Goodwill | 17,632 | 17,632 |
Other assets | 3,618 | 3,848 |
Total assets | 414,127 | 421,507 |
Current liabilities: | ||
Accounts payable | 842 | 2,249 |
Accrued expenses and other current liabilities | 12,961 | 14,550 |
Accrued employee liabilities | 26,414 | 29,470 |
Debt, current portion | 4,397 | 4,397 |
Deferred revenue, current portion | 126,880 | 127,701 |
Operating lease liabilities, current portion | 10,946 | 9,630 |
Total current liabilities | 182,440 | 187,997 |
Debt, net of current portion | 574 | 1,666 |
Deferred revenue, net of current portion | 1,241 | 1,529 |
Operating lease liabilities, net of current portion | 53,540 | 53,590 |
Deferred tax liabilities | 1,920 | 1,929 |
Other long-term liabilities | 2,905 | 2,883 |
Total liabilities | 242,620 | 249,594 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Additional paid-in capital | 652,501 | 635,127 |
Accumulated other comprehensive income | 677 | 796 |
Accumulated deficit | (481,683) | (464,022) |
Total stockholders’ equity | 171,507 | 171,913 |
Total liabilities and stockholders’ equity | 414,127 | 421,507 |
Class A common stock | ||
Stockholders’ equity: | ||
Common stock | 11 | 11 |
Class B common stock | ||
Stockholders’ equity: | ||
Common stock | $ 1 | $ 1 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Apr. 30, 2021 | Jan. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 5,827 | $ 4,522 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Revenue: | ||
Total revenue | $ 80,329 | $ 73,898 |
Cost of revenue: | ||
Total cost of revenue | 32,721 | 32,297 |
Gross profit | 47,608 | 41,601 |
Operating expenses: | ||
Research and development | 18,967 | 17,543 |
Sales and marketing | 31,865 | 28,496 |
General and administrative | 14,185 | 13,265 |
Total operating expenses | 65,017 | 59,304 |
Loss from operations | (17,409) | (17,703) |
Interest and other income, net | 121 | 378 |
Loss before income taxes | (17,288) | (17,325) |
Income tax provision | 373 | 163 |
Net loss | (17,661) | (17,488) |
Comprehensive loss: | ||
Foreign currency translation adjustment | (85) | (427) |
Unrealized (loss) gain on available-for-sale securities | (34) | 157 |
Comprehensive loss | $ (17,780) | $ (17,758) |
Net loss per share, basic (in dollars per share) | $ (0.15) | $ (0.15) |
Net loss per share, diluted (in dollars per share) | $ (0.15) | $ (0.15) |
Weighted-average shares outstanding used in calculating net loss per share attributable to common stockholders, basic (in shares) | 121,354 | 115,139 |
Weighted-average shares outstanding used in calculating net loss per share attributable to common stockholders, diluted (in shares) | 121,354 | 115,139 |
Subscription | ||
Revenue: | ||
Total revenue | $ 65,142 | $ 56,896 |
Cost of revenue: | ||
Total cost of revenue | 15,643 | 13,615 |
Professional services | ||
Revenue: | ||
Total revenue | 15,187 | 17,002 |
Cost of revenue: | ||
Total cost of revenue | $ 17,078 | $ 18,682 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Class A common stock | Class B common stock | Common StockClass A common stock | Common StockClass B common stock | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Income | Accumulated Deficit |
Beginning balance (in shares) at Jan. 31, 2020 | 97,134 | 17,348 | ||||||
Beginning balance at Jan. 31, 2020 | $ 164,659 | $ 10 | $ 2 | $ 555,307 | $ 188 | $ (390,848) | ||
Conversion of Class B common stock to Class A common stock (in shares) | 2,186 | (2,186) | ||||||
Issuance of common stock upon exercise of stock options, net of repurchases (in shares) | 856 | |||||||
Issuance of common stock upon exercise of stock options, net of repurchases (in shares) | (2) | |||||||
Issuance of common stock upon exercise of stock options, net of repurchases | 4,009 | 4,009 | ||||||
Lapse of restrictions on common stock related to early exercise of stock options | 39 | 39 | ||||||
RSU releases (in shares) | 337 | 40 | ||||||
RSU releases | 0 | |||||||
Stock-based compensation | 10,884 | 10,884 | ||||||
Other comprehensive loss | (270) | (270) | ||||||
Net loss | (17,488) | (17,488) | ||||||
Ending balance (in shares) at Apr. 30, 2020 | 99,655 | 16,058 | ||||||
Ending balance at Apr. 30, 2020 | 161,833 | $ 10 | $ 2 | 570,239 | (82) | (408,336) | ||
Beginning balance (in shares) at Jan. 31, 2021 | 109,900 | 11,004 | ||||||
Beginning balance at Jan. 31, 2021 | $ 171,913 | $ 11 | $ 1 | 635,127 | 796 | (464,022) | ||
Conversion of Class B common stock to Class A common stock (in shares) | 680 | (680) | ||||||
Issuance of common stock upon exercise of stock options, net of repurchases (in shares) | 650 | 39 | 611 | |||||
Issuance of common stock upon exercise of stock options, net of repurchases | $ 3,567 | 3,567 | ||||||
Lapse of restrictions on common stock related to early exercise of stock options | 10 | 10 | ||||||
RSU releases (in shares) | 630 | 20 | ||||||
RSU releases | 0 | |||||||
Stock-based compensation | 13,797 | 13,797 | ||||||
Other comprehensive loss | (119) | (119) | ||||||
Net loss | (17,661) | (17,661) | ||||||
Ending balance (in shares) at Apr. 30, 2021 | 111,300 | 10,900 | 111,249 | 10,955 | ||||
Ending balance at Apr. 30, 2021 | $ 171,507 | $ 11 | $ 1 | $ 652,501 | $ 677 | $ (481,683) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (17,661) | $ (17,488) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation, amortization and accretion | 4,147 | 3,495 |
Stock-based compensation | 13,797 | 10,884 |
Provision for credit losses | 1,153 | 992 |
Amortization of deferred commissions | 3,874 | 2,623 |
Reduction in carrying amount of right-of-use assets | 2,342 | 2,286 |
Other | 156 | 167 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 18,223 | 8,518 |
Prepaid expenses and other assets | (1,169) | 1,591 |
Deferred commissions | (4,200) | (2,275) |
Accounts payable | (1,342) | 2,096 |
Accrued expenses and other liabilities | (1,522) | (2,469) |
Accrued employee liabilities | (3,056) | (386) |
Deferred revenue | (1,109) | (3,908) |
Operating lease liabilities | (3,382) | (3,175) |
Net cash provided by operating activities | 10,251 | 2,951 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (1,965) | (5,120) |
Insurance proceeds for damaged property and equipment | 344 | 0 |
Purchases of short-term investments | (26,687) | (10,901) |
Sales of short-term investments | 0 | 2,511 |
Maturities of short-term investments | 22,692 | 38,500 |
Net cash (used in) provided by investing activities | (5,616) | 24,990 |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock upon exercise of stock options, net of repurchases of unvested common stock | 3,567 | 4,015 |
Principal payments on long-term debt | (1,111) | (1,110) |
Net cash provided by financing activities | 2,456 | 2,905 |
Effect of exchange rates on cash and cash equivalents | (85) | (427) |
Net increase in cash and cash equivalents | 7,006 | 30,419 |
Cash and cash equivalents, beginning of period | 94,110 | 54,275 |
Cash and cash equivalents, end of period | 101,116 | 84,694 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Lapse in restrictions on early exercised common stock options | 10 | 39 |
Property and equipment purchases accrued or in accounts payable | $ 20 | $ 2,604 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 3 Months Ended |
Apr. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview and Basis of Presentation | Note 1. Overview and Basis of Presentation Description of Business Zuora, Inc. was incorporated in the state of Delaware in 2006 and began operations in 2007. Zuora’s fiscal year ends on January 31. Zuora is headquartered in Redwood City, California. Zuora provides a cloud-based subscription management platform, architected specifically for dynamic, recurring business models. Our solution enables companies across multiple industries and geographies to launch, manage and scale a subscription business, automating the entire subscription order-to-revenue process, including billing, collections and revenue recognition. With Zuora’s solution, businesses can change pricing and packaging for products and services to grow and scale, efficiently comply with revenue recognition standards, analyze customer data to optimize their subscription offerings, and build meaningful relationships with their subscribers. References to "Zuora", “us”, “our”, or “we” in these notes refer to Zuora, Inc. and its subsidiaries on a consolidated basis. Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements, which include the accounts of Zuora and its wholly owned subsidiaries, have been prepared in conformity with accounting principles generally accepted in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. All intercompany balances and transactions have been eliminated in consolidation. The unaudited condensed consolidated balance sheet as of January 31, 2021 included herein was derived from the audited financial statements as of that date, but does not include all disclosures including certain notes required by GAAP on an annual reporting basis. The unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the balance sheets, statements of comprehensive loss, statements of cash flows and statements of stockholders' equity for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year ending January 31, 2022 or any future period. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2021, filed with the SEC on March 31, 2021 (Annual Report). Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the unaudited condensed consolidated financial statements, as well as reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates. Our most significant estimates and assumptions are related to revenue recognition with respect to the determination of the relative standalone selling prices for our services; the expected period of benefit over which deferred commissions are amortized; valuation of stock-based awards; estimates of allowance for credit losses; estimates of the fair value of goodwill; useful lives of intangibles and other long-lived assets; and the valuation of deferred income tax assets and contingencies. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results may differ materially from these estimates under different assumptions or conditions. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Recent Accounting Pronouncements | 3 Months Ended |
Apr. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Recent Accounting Pronouncements | Note 2. Summary of Significant Accounting Policies and Recent Accounting Pronouncements Our significant accounting policies are discussed in Note 2. Summary of Significant Accounting Policies and Recent Accounting Pronouncements in our Annual Report for the fiscal year ended January 31, 2021. There have been no significant changes to these policies during the three months ended April 30, 2021. Recent Accounting Pronouncements |
Investments
Investments | 3 Months Ended |
Apr. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Note 3. Investments The amortized costs, unrealized gains and losses and estimated fair values of our short-term investments were as follows (in thousands): April 30, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government securities $ 17,997 $ 7 $ — $ 18,004 Corporate bonds 29,214 — (7) 29,207 Commercial paper 45,556 — — 45,556 Supranational bonds 3,516 — (1) 3,515 Total short-term investments $ 96,283 $ 7 $ (8) $ 96,282 January 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government securities $ 18,007 $ 28 $ — $ 18,035 Corporate bonds 25,888 8 (3) 25,893 Commercial paper 48,556 — — 48,556 Total short-term investments $ 92,451 $ 36 $ (3) $ 92,484 There were no material realized gains or losses from sales of marketable securities that were reclassified out of accumulated other comprehensive income into investment income during the three months ended April 30, 2021 and 2020. Zuora had no significant unrealized losses on our available-for-sale securities as of April 30, 2021 and as of January 31, 2021, and we do not expect material credit losses on our current investments in future periods. All securities had stated effective maturities of less than one year as of April 30, 2021. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 4. Fair Value Measurements The accounting guidance for fair value measurements establishes a three-tier hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows: Level input Input definition Level 1 Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets Level 2 Inputs other than quoted prices included within Level 1 that are observable for the asset or liability through corroboration with market data at the measurement date Level 3 Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date In general, and where applicable, we use quoted prices in active markets for identical assets or liabilities to determine fair value. If quoted prices in active markets for identical assets or liabilities are not available to determine fair value, then we use quoted prices for similar assets and liabilities or inputs other than the quoted prices that are observable either directly or indirectly. The following tables summarize our fair value hierarchy for our financial assets measured at fair value on a recurring basis (in thousands): April 30, 2021 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 95,011 $ — $ — $ 95,011 Short-term investments: U.S. government securities $ — $ 18,004 $ — $ 18,004 Corporate bonds — 29,207 — 29,207 Commercial paper — 45,556 — 45,556 Supranational bonds — 3,515 — 3,515 Total short-term investments $ — $ 96,282 $ — $ 96,282 January 31, 2021 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 85,664 $ — $ — $ 85,664 Short-term investments: U.S. government securities $ — $ 18,035 $ — $ 18,035 Corporate bonds — 25,893 — 25,893 Commercial paper — 48,556 — 48,556 Total short-term investments $ — $ 92,484 $ — $ 92,484 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 3 Months Ended |
Apr. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Note 5. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): April 30, 2021 January 31, 2021 Prepaid software subscriptions $ 6,553 $ 5,087 Prepaid hosting costs 1,716 1,847 Prepaid insurance 1,395 2,317 Contract assets 1,270 1,381 Taxes 691 477 Insurance recovery receivable 558 344 Other 4,407 4,121 Total $ 16,590 $ 15,574 |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Apr. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Note 6. Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): April 30, 2021 January 31, 2021 Software $ 20,634 $ 19,711 Leasehold improvements 19,476 18,978 Servers 14,131 14,179 Computer equipment 13,256 12,824 Furniture and fixtures 5,224 5,228 Vehicles 104 105 72,825 71,025 Less accumulated depreciation and amortization (40,432) (37,656) Total $ 32,393 $ 33,369 The following table summarizes the capitalized internal-use software costs included within the Software line item in the table above (in thousands): Three Months Ended April 30, 2021 2020 Internal-use software costs capitalized during the period $ 924 $ 1,438 April 30, 2021 January 31, 2021 Total capitalized internal-use software, net of accumulated amortization $ 8,871 $ 8,704 The following table summarizes total depreciation and amortization expense related to property and equipment, including amortization of internal-use software, included in Operating expenses and Cost of subscription revenue in the accompanying unaudited condensed consolidated statements of comprehensive loss (in thousands): Three Months Ended April 30, 2021 2020 Total depreciation and amortization expense $ 2,844 $ 2,322 |
Purchased Intangible Assets
Purchased Intangible Assets | 3 Months Ended |
Apr. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Purchased Intangible Assets | Note 7. Purchased Intangible Assets The following table summarizes the purchased intangible asset balances and activity (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Balance, January 31, 2021 $ 12,893 $ (8,965) $ 3,928 Amortization expense — (423) (423) Balance, April 30, 2021 $ 12,893 $ (9,388) $ 3,505 Amortization expense related to purchased intangible assets is included in Cost of subscription revenue in the accompanying unaudited condensed consolidated statement of comprehensive loss. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Apr. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Note 8. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): April 30, 2021 January 31, 2021 Accrued taxes $ 3,962 $ 4,377 Accrued hosting and third-party licenses 3,600 3,073 Accrued outside services and consulting 1,774 2,380 Other accrued expenses 3,625 4,720 Total $ 12,961 $ 14,550 |
Debt
Debt | 3 Months Ended |
Apr. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Note 9. Debt We have an agreement with Silicon Valley Bank that includes a revolving and term loan facility, which is secured by a lien on substantially all of our non-IP assets (Debt Agreement). Under the revolving loan facility, we may borrow up to $30.0 million until October 2022. As of April 30, 2021, we had not drawn down any amounts under this revolving loan. Under the term loan facility, we borrowed $15.0 million in June 2017 to partially finance the acquisition of Leeyo. Payments were interest only through June 2019, after which date payments of principal and interest are due in 36 equal monthly installments beginning in June 2019 until the maturity date in June 2022. A remaining balance of $4.9 million was outstanding as of April 30, 2021. The interest rate under both the revolving and term loan facility is equal to the prime rate published by the Wall Street Journal minus 1.00%. |
Deferred Revenue and Performanc
Deferred Revenue and Performance Obligations | 3 Months Ended |
Apr. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue and Performance Obligations | Note 10. Deferred Revenue and Performance Obligations The following table summarizes revenue recognized during the period that was included in the deferred revenue balance at the beginning of each respective period (in thousands): Three Months Ended April 30, 2021 2020 Revenue recognized from deferred revenue $ 62,919 $ 57,005 As of April 30, 2021, total remaining non-cancellable performance obligations under our subscription contracts with customers was approximately $330.6 million and we expect to recognize revenue on approximately 63% of these remaining performance obligations over the next 12 months. Remaining performance obligations under our professional service contracts as of April 30, 2021 were not material. |
Geographical Information
Geographical Information | 3 Months Ended |
Apr. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Geographical Information | Note 11. Geographical Information Disaggregation of Revenue Revenue by country, based on the customer’s address at the time of sale, was as follows (in thousands): Three Months Ended April 30, 2021 2020 United States $ 49,707 $ 49,902 Others 30,622 23,996 Total $ 80,329 $ 73,898 Percentage of revenue by geographic area: United States 62 % 68 % Other 38 % 32 % Other than the United States, no individual country exceeded 10% of total revenue for the three months ended April 30, 2021 and 2020. Long-lived assets Long-lived assets, which consist of property and equipment, net, deferred commissions, purchased intangible assets, net and operating lease right-of-use assets by geographic location, are based on the location of the legal entity that owns the asset. As of April 30, 2021 and 2020, no individual country exceeded 10% of total long-lived assets other than the United States. |
Leases
Leases | 3 Months Ended |
Apr. 30, 2021 | |
Leases [Abstract] | |
Leases | Note 12. Leases We have non-cancelable operating leases for our offices located in the U.S. and abroad. As of April 30, 2021, these leases expire on various dates between 2021 and 2030. Certain lease agreements include one or more options to renew, with renewal terms that can extend the lease up to seven years. We have the right to exercise or forego the lease renewal options. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of our long-term operating leases and related operating lease cost were as follows (in thousands): April 30, 2021 January 31, 2021 Operating lease right-of-use assets $ 48,666 $ 47,085 Operating lease liabilities, current portion 10,946 9,630 Operating lease liabilities, net of current portion 53,540 53,590 Total operating lease liabilities $ 64,486 $ 63,220 Three Months Ended April 30, 2021 2020 Operating lease cost 1 $ 3,216 $ 2,963 (1) Includes costs related to our short-term operating leases as follows (in thousands): Three Months Ended April 30, 2021 2020 Short-term operating lease costs $ 102 $ 82 The future maturities of long-term operating lease liabilities for each fiscal year were as follows (in thousands): Maturities of Operating Lease Liabilities 2022 (remainder of the year) $ 10,292 2023 13,248 2024 10,855 2025 6,386 2026 6,242 Thereafter 29,897 Total lease payments 76,920 Less imputed interest (12,434) Present value of lease liabilities $ 64,486 Other supplemental information related to our long-term operating leases includes the following (dollars in thousands): April 30, 2021 January 31, 2021 Weighted-average remaining operating lease term 7.4 years 7.8 years Weighted-average operating lease discount rate 4.5 % 4.7 % Three Months Ended April 30, 2021 2020 Supplemental Cash Flow Information Cash paid for amounts included in the measurement of lease liabilities: Cash paid for operating leases $ 3,409 $ 3,175 New right-of-use assets obtained in exchange for lease liabilities: Operating leases obtained $ 3,923 $ 857 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13. Commitments and Contingencies Letters of Credit In connection with the execution of certain facility leases, we had bank issued irrevocable letters of credit for $4.7 million as of April 30, 2021 and January 31, 2021. No draws have been made under such letters of credit. Legal Proceedings From time to time, we may be subject to legal proceedings, as well as demands, claims and threatened litigation. The outcomes of legal proceedings and other contingencies are inherently unpredictable, subject to significant uncertainties, and could be material to our operating results and cash flows for a particular period. Regardless of the outcome, litigation can have an adverse impact on our business because of defense and settlement costs, diversion of management resources, and other factors. Other than the matters described below, we are not currently party to any legal proceeding that we believe could have a material adverse effect on our business, operating results, cash flows, or financial condition should such litigation or claim be resolved unfavorably. Securities Class Actions In June 2019, a putative securities class action lawsuit was filed in the U.S. District Court for the Northern District of California naming Zuora and certain of its officers as defendants. The complaint purports to bring suit on behalf of stockholders who purchased or otherwise acquired Zuora's securities between April 12, 2018 and May 30, 2019. The complaint alleges that defendants made false and misleading statements about Zuora's business, operations and prospects in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (Exchange Act), and seeks unspecified compensatory damages, fees and costs. In November 2019, the lead plaintiff filed a consolidated amended complaint asserting the same claims. In April 2020, the Court denied defendants’ motion to dismiss. On March 15, 2021, the Court granted plaintiff’s motion to certify a class consisting of persons and entities who purchased or acquired Zuora common stock between April 12, 2018 and May 30, 2019 and who were allegedly damaged thereby. Discovery in this case is ongoing. In April and May 2020, two putative securities class action lawsuits were filed in the Superior Court of the State of California, County of San Mateo, naming as defendants Zuora and certain of its current and former officers, its directors and the underwriters of Zuora's Initial Public Offering (IPO). The complaints purport to bring suit on behalf of stockholders who purchased or otherwise acquired Zuora's securities pursuant or traceable to the Registration Statement and Prospectus issued in connection with Zuora's IPO and allege claims under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933. The suits seek unspecified damages and other relief. In July 2020, the court entered an order consolidating the two lawsuits, and the lead plaintiff filed a consolidated amended complaint asserting the same claims. In October 2020, the court denied defendants' demurrer as to the Section 11 and Section 15 claims and granted the demurrer as to the Section 12(a)(2) claim with leave to file an amended complaint. In November 2020, the lead plaintiff filed an amended consolidated complaint. Defendants' demurrer to the Section 12(a)(2) claim was sustained with further leave to amend. Plaintiffs have until July 26, 2021 in which to file a further amended complaint. Given the procedural posture and the nature of such litigation matters, we are unable to estimate the reasonably possible loss or range of loss, if any, that may result from these matters. We dispute the claims described above and intend to vigorously defend against them. Derivative Litigation In September 2019, two stockholder derivative lawsuits were filed in the U.S. District Court for the Northern District of California against certain of Zuora’s directors and executive officers and naming Zuora as a nominal defendant. The derivative actions allege claims based on events similar to those in the securities class actions and assert causes of action against the individual defendants for breach of fiduciary duty, unjust enrichment, waste of corporate assets, and for making false and misleading statements about Zuora's business, operations, and prospects in violation of Section 14(a) of the Exchange Act. Plaintiffs seek corporate reforms, unspecified damages and restitution, and fees and costs. In November 2019, the stockholder derivative lawsuits, which are related to the federal securities class action, were assigned to the same judge who is overseeing the federal securities class action lawsuit. In February 2020, the court entered an order consolidating the two derivative lawsuits. In August 2020, the court entered an order staying the consolidated action until the completion of fact discovery in the federal securities class action. In May and June 2020, two stockholder derivative lawsuits were filed in the U.S. District Court for the District of Delaware against certain of Zuora’s directors and current and former executive officers. The derivative actions allege claims based on events similar to those in the securities class actions and the derivative actions pending in the Northern District of California and assert causes of action against the individual defendants for breach of fiduciary duty, unjust enrichment, waste of corporate assets, contribution, and for making false and misleading statements about Zuora's business, operations, and prospects in violation of Section 14(a) of the Exchange Act. Plaintiff seeks corporate reforms, unspecified damages and restitution, and fees and costs. In June 2020, the court entered an order consolidating the two Delaware derivative lawsuits. In August 2020, the court entered an order staying the consolidated action until the completion of fact discovery in the federal securities class action. In February and March 2021, two additional stockholder derivative lawsuits were filed in Delaware Chancery Court; those actions have now been consolidated and plaintiffs assert claims against, among others, certain current and former officers and directors for breach of fiduciary duty and unjust enrichment based on allegations similar to those in the actions described above. Given the procedural posture and the nature of such litigation matters, we are unable to estimate the reasonably possible loss or range of loss, if any, that may result from these matters. Other Contractual Obligations As of April 30, 2021, we had a contractual obligation to make $7.8 million in purchases of cloud computing services provided by one of our vendors by September 30, 2021. |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 14. Income Taxes The following table reflects our income tax provision, pretax loss and effective tax rate for the periods presented (in thousands, except percentages): Three Months Ended April 30, 2021 2020 Loss before income taxes $ (17,288) $ (17,325) Income tax provision 373 163 Effective tax rate (2.2) % (0.9) % |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Apr. 30, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Note 15. Stockholders' Equity Preferred Stock As of April 30, 2021, Zuora had authorized 10 million shares of preferred stock, each with a par value of $0.0001 per share. As of April 30, 2021, no shares of preferred stock were issued and outstanding. Common Stock Prior to Zuora's IPO, which was effective in April 2018, all shares of common stock then outstanding were reclassified into Class B common stock. Shares offered and sold in the IPO consisted of newly authorized shares of Class A common stock. Holders of Class A and Class B common stock are entitled to one vote per share and ten votes per share, respectively, and the shares of Class A common stock and Class B common stock are identical, except for voting and conversion rights. As of April 30, 2021, Zuora had authorized 500 million shares of Class A common stock and 500 million shares of Class B common stock, each with a par value of $0.0001 per share. As of April 30, 2021, 111.3 million shares of Class A common stock and 10.9 million shares of Class B common stock were issued and outstanding. Accumulated Other Comprehensive Income Components of accumulated other comprehensive income were as follows (in thousands): Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Available-for-Sale Securities Total Balance, January 31, 2021 $ 791 $ 5 $ 796 Foreign currency translation adjustment (85) — (85) Unrealized loss on available-for-sale securities — (34) (34) Balance, April 30, 2021 $ 706 $ (29) $ 677 There were no material reclassifications out of accumulated other comprehensive income during the three months ended April 30, 2021. Additionally, there was no material tax impact on the amounts presented. |
Employee Stock Plans
Employee Stock Plans | 3 Months Ended |
Apr. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Employee Stock Plans | Note 16. Employee Stock Plans Equity Incentive Plans In March 2018, our Board of Directors adopted and our stockholders approved the 2018 Equity Incentive Plan (2018 Plan). The 2018 Plan authorizes the award of stock options, restricted stock awards, stock appreciation rights, RSUs, performance awards, and stock bonuses. As of April 30, 2021, approximately 26.9 million shares of Class A common stock were reserved and available for issuance under the 2018 Plan. In addition, as of April 30, 2021, 6.6 million stock options and RSUs exercisable or settleable for Class B common stock were outstanding in the aggregate under our 2006 Stock Plan (2006 Plan) and 2015 Equity Incentive Plan (2015 Plan), which plans were terminated in May 2015 and April 2018, respectively. The 2006 Plan and 2015 Plan continue to govern outstanding equity awards granted thereunder. Stock Options The following tables summarize stock option activity and related information (in thousands, except weighted-average exercise price, weighted-average grant date fair value and average remaining contractual term): Shares Weighted-Average Average Aggregate Balance, January 31, 2021 11,812 $ 8.54 6.6 80,212 Granted 135 15.66 Exercised (650) 5.48 Forfeited (419) 13.04 Balance, April 30, 2021 10,878 8.64 6.4 87,151 Exercisable as of April 30, 2021 7,367 5.60 5.2 78,086 Vested and expected to vest as of April 30, 2021 10,496 8.47 6.3 85,876 Three Months Ended April 30, 2021 2020 Weighted-average grant date fair value per share of options granted during each respective period $ 6.53 $ 4.21 Aggregate intrinsic value of options exercised during each respective period $ 6,591 $ 7,499 We used the Black-Scholes option-pricing model to estimate the fair value of our stock options granted during each respective period using the following assumptions: Three Months Ended April 30, 2021 2020 Fair value of common stock $ 15.66 $ 10.57 Expected volatility 42.3 % 41.4 % Expected term (years) 6.1 6.1 Risk-free interest rate 1.0 % 0.5 % Expected dividend yield — — RSU and Restricted Stock Award Activity The following table summarizes RSU and restricted stock award activity and related information (in thousands, except weighted-average grant date fair value): Number of RSU and Restricted Shares Outstanding Weighted-Average Grant Date Fair Value Balance, January 31, 2021 8,278 $ 13.54 Granted 1,644 15.66 Vested (650) 14.04 Forfeited (718) 13.96 Balance, April 30, 2021 8,554 13.87 2018 Employee Stock Purchase Plan In March 2018, our Board of Directors adopted and our stockholders approved the 2018 Employee Stock Purchase Plan (ESPP). A total of 4.5 million shares of Class A common stock were reserved and available for issuance under the ESPP as of April 30, 2021. The ESPP provides for 24-month offering periods beginning June 15 and December 15 of each year, and each offering period contains four six-month purchase periods. On each purchase date, ESPP participants will purchase shares of our Class A common stock at a price per share equal to 85% of the lesser of (1) the fair market value of the Class A common stock on the offering date or (2) the fair market value of the Class A common stock on the purchase date. Stock-Based Compensation Expense Stock-based compensation expense was recorded in the following cost and expense categories in the accompanying unaudited condensed consolidated statements of comprehensive loss (in thousands): Three Months Ended April 30, 2021 2020 Cost of subscription revenue $ 1,043 $ 852 Cost of professional services revenue 2,001 1,650 Research and development 4,529 3,542 Sales and marketing 4,080 3,005 General and administrative 2,144 1,835 Total stock-based compensation expense $ 13,797 $ 10,884 As of April 30, 2021, unrecognized compensation costs related to unvested equity awards and the weighted-average remaining period over which those costs are expected to be realized were as follows (dollars in thousands): Stock Options RSUs ESPP Unrecognized compensation costs $ 16,955 $ 97,475 $ 6,619 Weighted-average remaining recognition period 2.6 years 3.1 years 1.0 years |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Apr. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Note 17. Net Loss Per Share The following table presents the calculation of basic and diluted net loss per share for the periods presented (in thousands, except per share data): Three Months Ended 2021 2020 Numerator: Net loss $ (17,661) $ (17,488) Denominator: Weighted-average common shares outstanding, basic and diluted 121,354 115,139 Net loss per share, basic and diluted $ (0.15) $ (0.15) Since we were in a net loss position for all periods presented, basic net loss per share attributable to common stockholders is the same as diluted net loss per share as the inclusion of all potential common shares outstanding would have been anti-dilutive. Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows (in thousands): April 30, 2021 2020 Issued and outstanding stock options 10,878 12,577 Unvested RSUs and restricted stock issued and outstanding 8,554 4,994 Shares committed under ESPP 333 300 Total 19,765 17,871 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Apr. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements, which include the accounts of Zuora and its wholly owned subsidiaries, have been prepared in conformity with accounting principles generally accepted in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. All intercompany balances and transactions have been eliminated in consolidation. The unaudited condensed consolidated balance sheet as of January 31, 2021 included herein was derived from the audited financial statements as of that date, but does not include all disclosures including certain notes required by GAAP on an annual reporting basis. The unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the balance sheets, statements of comprehensive loss, statements of cash flows and statements of stockholders' equity for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year ending January 31, 2022 or any future period. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2021, filed with the SEC on March 31, 2021 (Annual Report). |
Use of Estimates | Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the unaudited condensed consolidated financial statements, as well as reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates. Our most significant estimates and assumptions are related to revenue recognition with respect to the determination of the relative standalone selling prices for our services; the expected period of benefit over which deferred commissions are amortized; valuation of stock-based awards; estimates of allowance for credit losses; estimates of the fair value of goodwill; useful lives of intangibles and other long-lived assets; and the valuation of deferred income tax assets and contingencies. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results may differ materially from these estimates under different assumptions or conditions. |
Recent Accounting Pronouncements | Recent Accounting PronouncementsIn December 2019, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2019-12, which simplifies the accounting for income taxes by removing certain exceptions to the general principles in the existing guidance for income taxes and making other minor improvements. We adopted this ASU on February 1, 2021, and the adoption did not have a material impact on our consolidated financial statements. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost, Unrealized Gains and Losses, and Estimated Fair Value of Short-term Investments | The amortized costs, unrealized gains and losses and estimated fair values of our short-term investments were as follows (in thousands): April 30, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government securities $ 17,997 $ 7 $ — $ 18,004 Corporate bonds 29,214 — (7) 29,207 Commercial paper 45,556 — — 45,556 Supranational bonds 3,516 — (1) 3,515 Total short-term investments $ 96,283 $ 7 $ (8) $ 96,282 January 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government securities $ 18,007 $ 28 $ — $ 18,035 Corporate bonds 25,888 8 (3) 25,893 Commercial paper 48,556 — — 48,556 Total short-term investments $ 92,451 $ 36 $ (3) $ 92,484 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value Hierarchy for Financial Assets Measured on a Recurring Basis | The following tables summarize our fair value hierarchy for our financial assets measured at fair value on a recurring basis (in thousands): April 30, 2021 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 95,011 $ — $ — $ 95,011 Short-term investments: U.S. government securities $ — $ 18,004 $ — $ 18,004 Corporate bonds — 29,207 — 29,207 Commercial paper — 45,556 — 45,556 Supranational bonds — 3,515 — 3,515 Total short-term investments $ — $ 96,282 $ — $ 96,282 January 31, 2021 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 85,664 $ — $ — $ 85,664 Short-term investments: U.S. government securities $ — $ 18,035 $ — $ 18,035 Corporate bonds — 25,893 — 25,893 Commercial paper — 48,556 — 48,556 Total short-term investments $ — $ 92,484 $ — $ 92,484 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): April 30, 2021 January 31, 2021 Prepaid software subscriptions $ 6,553 $ 5,087 Prepaid hosting costs 1,716 1,847 Prepaid insurance 1,395 2,317 Contract assets 1,270 1,381 Taxes 691 477 Insurance recovery receivable 558 344 Other 4,407 4,121 Total $ 16,590 $ 15,574 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): April 30, 2021 January 31, 2021 Software $ 20,634 $ 19,711 Leasehold improvements 19,476 18,978 Servers 14,131 14,179 Computer equipment 13,256 12,824 Furniture and fixtures 5,224 5,228 Vehicles 104 105 72,825 71,025 Less accumulated depreciation and amortization (40,432) (37,656) Total $ 32,393 $ 33,369 The following table summarizes the capitalized internal-use software costs included within the Software line item in the table above (in thousands): Three Months Ended April 30, 2021 2020 Internal-use software costs capitalized during the period $ 924 $ 1,438 April 30, 2021 January 31, 2021 Total capitalized internal-use software, net of accumulated amortization $ 8,871 $ 8,704 The following table summarizes total depreciation and amortization expense related to property and equipment, including amortization of internal-use software, included in Operating expenses and Cost of subscription revenue in the accompanying unaudited condensed consolidated statements of comprehensive loss (in thousands): Three Months Ended April 30, 2021 2020 Total depreciation and amortization expense $ 2,844 $ 2,322 |
Purchased Intangible Assets (Ta
Purchased Intangible Assets (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Purchased Intangible Assets | The following table summarizes the purchased intangible asset balances and activity (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Balance, January 31, 2021 $ 12,893 $ (8,965) $ 3,928 Amortization expense — (423) (423) Balance, April 30, 2021 $ 12,893 $ (9,388) $ 3,505 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): April 30, 2021 January 31, 2021 Accrued taxes $ 3,962 $ 4,377 Accrued hosting and third-party licenses 3,600 3,073 Accrued outside services and consulting 1,774 2,380 Other accrued expenses 3,625 4,720 Total $ 12,961 $ 14,550 |
Deferred Revenue and Performa_2
Deferred Revenue and Performance Obligations (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue Recognized that was Previously Included In Deferred Revenue | The following table summarizes revenue recognized during the period that was included in the deferred revenue balance at the beginning of each respective period (in thousands): Three Months Ended April 30, 2021 2020 Revenue recognized from deferred revenue $ 62,919 $ 57,005 |
Geographical Information (Table
Geographical Information (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue by Country Based on Customer Address at Time of Sale | Revenue by country, based on the customer’s address at the time of sale, was as follows (in thousands): Three Months Ended April 30, 2021 2020 United States $ 49,707 $ 49,902 Others 30,622 23,996 Total $ 80,329 $ 73,898 Percentage of revenue by geographic area: United States 62 % 68 % Other 38 % 32 % |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Leases [Abstract] | |
Schedule of Components of Long-term Operating Leases | The components of our long-term operating leases and related operating lease cost were as follows (in thousands): April 30, 2021 January 31, 2021 Operating lease right-of-use assets $ 48,666 $ 47,085 Operating lease liabilities, current portion 10,946 9,630 Operating lease liabilities, net of current portion 53,540 53,590 Total operating lease liabilities $ 64,486 $ 63,220 |
Schedule of Operating Lease Costs | Three Months Ended April 30, 2021 2020 Operating lease cost 1 $ 3,216 $ 2,963 (1) Includes costs related to our short-term operating leases as follows (in thousands): Three Months Ended April 30, 2021 2020 Short-term operating lease costs $ 102 $ 82 |
Schedule of Maturities of Operating Lease Liabilities | The future maturities of long-term operating lease liabilities for each fiscal year were as follows (in thousands): Maturities of Operating Lease Liabilities 2022 (remainder of the year) $ 10,292 2023 13,248 2024 10,855 2025 6,386 2026 6,242 Thereafter 29,897 Total lease payments 76,920 Less imputed interest (12,434) Present value of lease liabilities $ 64,486 |
Schedule of Supplemental Operating Lease Information | Other supplemental information related to our long-term operating leases includes the following (dollars in thousands): April 30, 2021 January 31, 2021 Weighted-average remaining operating lease term 7.4 years 7.8 years Weighted-average operating lease discount rate 4.5 % 4.7 % Three Months Ended April 30, 2021 2020 Supplemental Cash Flow Information Cash paid for amounts included in the measurement of lease liabilities: Cash paid for operating leases $ 3,409 $ 3,175 New right-of-use assets obtained in exchange for lease liabilities: Operating leases obtained $ 3,923 $ 857 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Provision, Pretax Loss, and Effective Tax Rate | The following table reflects our income tax provision, pretax loss and effective tax rate for the periods presented (in thousands, except percentages): Three Months Ended April 30, 2021 2020 Loss before income taxes $ (17,288) $ (17,325) Income tax provision 373 163 Effective tax rate (2.2) % (0.9) % |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Equity [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Income | Components of accumulated other comprehensive income were as follows (in thousands): Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Available-for-Sale Securities Total Balance, January 31, 2021 $ 791 $ 5 $ 796 Foreign currency translation adjustment (85) — (85) Unrealized loss on available-for-sale securities — (34) (34) Balance, April 30, 2021 $ 706 $ (29) $ 677 |
Employee Stock Plans (Tables)
Employee Stock Plans (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following tables summarize stock option activity and related information (in thousands, except weighted-average exercise price, weighted-average grant date fair value and average remaining contractual term): Shares Weighted-Average Average Aggregate Balance, January 31, 2021 11,812 $ 8.54 6.6 80,212 Granted 135 15.66 Exercised (650) 5.48 Forfeited (419) 13.04 Balance, April 30, 2021 10,878 8.64 6.4 87,151 Exercisable as of April 30, 2021 7,367 5.60 5.2 78,086 Vested and expected to vest as of April 30, 2021 10,496 8.47 6.3 85,876 |
Schedule of Stock Option Grant Date Fair Value and Intrinsic Value of Options Exercised | Three Months Ended April 30, 2021 2020 Weighted-average grant date fair value per share of options granted during each respective period $ 6.53 $ 4.21 Aggregate intrinsic value of options exercised during each respective period $ 6,591 $ 7,499 |
Schedule of Valuation Assumptions for Estimated Fair Value of Stock Options | We used the Black-Scholes option-pricing model to estimate the fair value of our stock options granted during each respective period using the following assumptions: Three Months Ended April 30, 2021 2020 Fair value of common stock $ 15.66 $ 10.57 Expected volatility 42.3 % 41.4 % Expected term (years) 6.1 6.1 Risk-free interest rate 1.0 % 0.5 % Expected dividend yield — — |
Schedule of RSU and Restricted Stock Award Activity | The following table summarizes RSU and restricted stock award activity and related information (in thousands, except weighted-average grant date fair value): Number of RSU and Restricted Shares Outstanding Weighted-Average Grant Date Fair Value Balance, January 31, 2021 8,278 $ 13.54 Granted 1,644 15.66 Vested (650) 14.04 Forfeited (718) 13.96 Balance, April 30, 2021 8,554 13.87 |
Schedule of Stock-Based Compensation Expense | Stock-based compensation expense was recorded in the following cost and expense categories in the accompanying unaudited condensed consolidated statements of comprehensive loss (in thousands): Three Months Ended April 30, 2021 2020 Cost of subscription revenue $ 1,043 $ 852 Cost of professional services revenue 2,001 1,650 Research and development 4,529 3,542 Sales and marketing 4,080 3,005 General and administrative 2,144 1,835 Total stock-based compensation expense $ 13,797 $ 10,884 |
Schedule of Unrecognized Compensation Costs Related to Unvested Equity Awards | As of April 30, 2021, unrecognized compensation costs related to unvested equity awards and the weighted-average remaining period over which those costs are expected to be realized were as follows (dollars in thousands): Stock Options RSUs ESPP Unrecognized compensation costs $ 16,955 $ 97,475 $ 6,619 Weighted-average remaining recognition period 2.6 years 3.1 years 1.0 years |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Net Loss Per Share | The following table presents the calculation of basic and diluted net loss per share for the periods presented (in thousands, except per share data): Three Months Ended 2021 2020 Numerator: Net loss $ (17,661) $ (17,488) Denominator: Weighted-average common shares outstanding, basic and diluted 121,354 115,139 Net loss per share, basic and diluted $ (0.15) $ (0.15) |
Schedule of Potential Dilutive Securities Not Included in the Diluted Per Share Calculations | Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows (in thousands): April 30, 2021 2020 Issued and outstanding stock options 10,878 12,577 Unvested RSUs and restricted stock issued and outstanding 8,554 4,994 Shares committed under ESPP 333 300 Total 19,765 17,871 |
Investments - Schedule of Inves
Investments - Schedule of Investments (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jan. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 96,283 | $ 92,451 |
Gross Unrealized Gains | 7 | 36 |
Gross Unrealized Losses | (8) | (3) |
Fair Value | 96,282 | 92,484 |
U.S. government securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 17,997 | 18,007 |
Gross Unrealized Gains | 7 | 28 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 18,004 | 18,035 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 29,214 | 25,888 |
Gross Unrealized Gains | 0 | 8 |
Gross Unrealized Losses | (7) | (3) |
Fair Value | 29,207 | 25,893 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 45,556 | 48,556 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 45,556 | $ 48,556 |
Supranational bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,516 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (1) | |
Fair Value | $ 3,515 |
Investments - Narrative (Detail
Investments - Narrative (Details) | Apr. 30, 2021 |
Maximum | |
Debt Securities, Available-for-sale [Line Items] | |
Securities stated effective maturities (in years) | 1 year |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jan. 31, 2021 |
Assets Measured on Recurring Basis | ||
Short-term investments | $ 96,282 | $ 92,484 |
U.S. government securities | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 18,004 | 18,035 |
Corporate bonds | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 29,207 | 25,893 |
Commercial paper | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 45,556 | 48,556 |
Supranational bonds | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 3,515 | |
Recurring | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 96,282 | 92,484 |
Recurring | Money market funds | ||
Assets Measured on Recurring Basis | ||
Cash equivalents | 95,011 | 85,664 |
Recurring | U.S. government securities | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 18,004 | 18,035 |
Recurring | Corporate bonds | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 29,207 | 25,893 |
Recurring | Commercial paper | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 45,556 | 48,556 |
Recurring | Supranational bonds | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 3,515 | |
Recurring | Level 1 | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 0 | 0 |
Recurring | Level 1 | Money market funds | ||
Assets Measured on Recurring Basis | ||
Cash equivalents | 95,011 | 85,664 |
Recurring | Level 1 | U.S. government securities | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 0 | 0 |
Recurring | Level 1 | Corporate bonds | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 0 | 0 |
Recurring | Level 1 | Commercial paper | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 0 | 0 |
Recurring | Level 1 | Supranational bonds | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 0 | |
Recurring | Level 2 | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 96,282 | 92,484 |
Recurring | Level 2 | Money market funds | ||
Assets Measured on Recurring Basis | ||
Cash equivalents | 0 | 0 |
Recurring | Level 2 | U.S. government securities | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 18,004 | 18,035 |
Recurring | Level 2 | Corporate bonds | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 29,207 | 25,893 |
Recurring | Level 2 | Commercial paper | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 45,556 | 48,556 |
Recurring | Level 2 | Supranational bonds | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 3,515 | |
Recurring | Level 3 | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 0 | 0 |
Recurring | Level 3 | Money market funds | ||
Assets Measured on Recurring Basis | ||
Cash equivalents | 0 | 0 |
Recurring | Level 3 | U.S. government securities | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 0 | 0 |
Recurring | Level 3 | Corporate bonds | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 0 | 0 |
Recurring | Level 3 | Commercial paper | ||
Assets Measured on Recurring Basis | ||
Short-term investments | 0 | $ 0 |
Recurring | Level 3 | Supranational bonds | ||
Assets Measured on Recurring Basis | ||
Short-term investments | $ 0 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jan. 31, 2021 |
Prepaid expenses and other current assets | ||
Prepaid software subscriptions | $ 6,553 | $ 5,087 |
Prepaid hosting costs | 1,716 | 1,847 |
Prepaid insurance | 1,395 | 2,317 |
Contract assets | 1,270 | 1,381 |
Taxes | 691 | 477 |
Insurance recovery receivable | 558 | 344 |
Other | 4,407 | 4,121 |
Total | $ 16,590 | $ 15,574 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jan. 31, 2021 |
Property and Equipment [Line Items] | ||
Property and equipment, gross | $ 72,825 | $ 71,025 |
Less accumulated depreciation and amortization | (40,432) | (37,656) |
Total | 32,393 | 33,369 |
Software | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 20,634 | 19,711 |
Leasehold improvements | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 19,476 | 18,978 |
Servers | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 14,131 | 14,179 |
Computer equipment | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 13,256 | 12,824 |
Furniture and fixtures | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 5,224 | 5,228 |
Vehicles | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | $ 104 | $ 105 |
Property and Equipment, Net - C
Property and Equipment, Net - Capitalized Internal-use Software Costs (Details) - Internal-use software - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Jan. 31, 2021 | |
Property and Equipment [Line Items] | |||
Internal-use software costs capitalized during the period | $ 924 | $ 1,438 | |
Total capitalized internal-use software, net of accumulated amortization | $ 8,871 | $ 8,704 |
Property and Equipment, Net - D
Property and Equipment, Net - Depreciation and Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Total depreciation and amortization expense | $ 2,844 | $ 2,322 |
Purchased Intangible Assets (De
Purchased Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Jan. 31, 2021 | |
Purchased Intangible Assets | ||
Gross Carrying Amount | $ 12,893 | $ 12,893 |
Accumulated Amortization | (9,388) | (8,965) |
Net Carrying Amount | 3,505 | $ 3,928 |
Amortization expense | $ (423) |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jan. 31, 2021 |
Payables and Accruals [Abstract] | ||
Accrued taxes | $ 3,962 | $ 4,377 |
Accrued hosting and third-party licenses | 3,600 | 3,073 |
Accrued outside services and consulting | 1,774 | 2,380 |
Other accrued expenses | 3,625 | 4,720 |
Total | $ 12,961 | $ 14,550 |
Debt (Details)
Debt (Details) - Silicon Valley Bank Debt Agreement | 1 Months Ended | 3 Months Ended |
Jun. 30, 2017USD ($) | Apr. 30, 2021USD ($)payment | |
Revolving Loan | ||
Line of Credit Facility [Line Items] | ||
Credit facility maximum borrowing capacity | $ 30,000,000 | |
Amount drawn under credit facility | $ 0 | |
Term Loan | ||
Line of Credit Facility [Line Items] | ||
Proceeds from term loan | $ 15,000,000 | |
Number of equal installment payments after interest-only period | payment | 36 | |
Frequency of periodic payments | monthly | |
Balance on term loan | $ 4,900,000 | |
Prepayment or termination fee (percent) | 1.50% | |
Amount due per agreement upon prepayment or termination of facility | $ 225,000 | |
WSJ Prime Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable interest rate, minus (percent) | 1.00% |
Deferred Revenue and Performa_3
Deferred Revenue and Performance Obligations - Deferred Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized from deferred revenue | $ 62,919 | $ 57,005 |
Deferred Revenue and Performa_4
Deferred Revenue and Performance Obligations - Narrative (Details) $ in Millions | Apr. 30, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligations | $ 330.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-05-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation (percent) | 63.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period | 12 months |
Geographical Information (Detai
Geographical Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 80,329 | $ 73,898 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 49,707 | 49,902 |
Others | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 30,622 | $ 23,996 |
Revenue | Geographic concentration | United States | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk (percent) | 62.00% | 68.00% |
Revenue | Geographic concentration | Others | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk (percent) | 38.00% | 32.00% |
Leases - Narrative (Details)
Leases - Narrative (Details) | Apr. 30, 2021extension_option |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Number of lease extension options | 1 |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating renewal term (in years) | 7 years |
Leases - Components of Operatin
Leases - Components of Operating Leases and Operating Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Jan. 31, 2021 | |
Operating Leases | |||
Operating lease right-of-use assets | $ 48,666 | $ 47,085 | |
Operating lease liabilities, current portion | 10,946 | 9,630 | |
Operating lease liabilities, net of current portion | 53,540 | 53,590 | |
Total operating lease liabilities | 64,486 | $ 63,220 | |
Lease Cost | |||
Operating lease cost | 3,216 | $ 2,963 | |
Short-term operating lease costs | $ 102 | $ 82 |
Leases - Future Maturities of O
Leases - Future Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Jan. 31, 2021 |
Maturities of Operating Lease Liabilities | ||
2022 (remainder of the year) | $ 10,292 | |
2023 | 13,248 | |
2024 | 10,855 | |
2025 | 6,386 | |
2026 | 6,242 | |
Thereafter | 29,897 | |
Total lease payments | 76,920 | |
Less imputed interest | (12,434) | |
Present value of lease liabilities | $ 64,486 | $ 63,220 |
Leases - Supplemental Informati
Leases - Supplemental Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Jan. 31, 2021 | |
Lease Term and Discount Rate | |||
Weighted-average remaining operating lease term | 7 years 4 months 24 days | 7 years 9 months 18 days | |
Weighted-average operating lease discount rate (percent) | 4.50% | 4.70% | |
Supplemental Cash Flow Information | |||
Cash paid for operating leases | $ 3,409 | $ 3,175 | |
Operating leases obtained | $ 3,923 | $ 857 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 1 Months Ended | 2 Months Ended | |||||||
Jul. 31, 2020lawsuit | Jun. 30, 2020lawsuit | Feb. 29, 2020lawsuit | Sep. 30, 2019lawsuit | Mar. 31, 2021lawsuit | Jun. 30, 2020lawsuit | May 31, 2020lawsuit | Apr. 30, 2021USD ($)vendor | Jan. 31, 2021USD ($) | |
Web Hosting Services [Member] | |||||||||
Other Commitments [Line Items] | |||||||||
Contractual obligation | $ | $ 7.8 | ||||||||
Number of vendors related to contractual obligation | vendor | 1 | ||||||||
Operating Lease Agreements | |||||||||
Other Commitments [Line Items] | |||||||||
Letters of credit outstanding | $ | $ 4.7 | $ 4.7 | |||||||
Putative securities class action | |||||||||
Other Commitments [Line Items] | |||||||||
Number of lawsuits filed | 2 | ||||||||
Number of lawsuits consolidated | 2 | ||||||||
Stockholder derivative lawsuits, CA | |||||||||
Other Commitments [Line Items] | |||||||||
Number of lawsuits filed | 2 | ||||||||
Number of lawsuits consolidated | 2 | ||||||||
Stockholder derivative lawsuits, DE | |||||||||
Other Commitments [Line Items] | |||||||||
Number of lawsuits filed | 2 | 2 | |||||||
Number of lawsuits consolidated | 2 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Loss before income taxes | $ (17,288) | $ (17,325) |
Income tax provision | $ 373 | $ 163 |
Effective tax rate (percent) | (2.20%) | (0.90%) |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) | Apr. 30, 2021vote$ / sharesshares |
Class of Stock [Line Items] | |
Preferred stock authorized (in shares) | 10,000,000 |
Preferred stock par value (in dollars per share) | $ / shares | $ 0.0001 |
Preferred stock issued (in shares) | 0 |
Preferred stock outstanding (in shares) | 0 |
Class A common stock | |
Class of Stock [Line Items] | |
Number of votes for each share of stock held (in votes) | vote | 1 |
Common stock authorized (in shares) | 500,000,000 |
Common stock par value (in dollars per share) | $ / shares | $ 0.0001 |
Common stock issued (in shares) | 111,300,000 |
Common stock outstanding (in shares) | 111,300,000 |
Class B common stock | |
Class of Stock [Line Items] | |
Number of votes for each share of stock held (in votes) | vote | 10 |
Common stock authorized (in shares) | 500,000,000 |
Common stock par value (in dollars per share) | $ / shares | $ 0.0001 |
Common stock issued (in shares) | 10,900,000 |
Common stock outstanding (in shares) | 10,900,000 |
Stockholders' Equity - Componen
Stockholders' Equity - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Components of accumulated other comprehensive loss | ||
Beginning balance | $ 171,913 | $ 164,659 |
Foreign currency translation adjustment | (85) | (427) |
Unrealized loss on available-for-sale securities | (34) | 157 |
Ending balance | 171,507 | 161,833 |
AOCI | ||
Components of accumulated other comprehensive loss | ||
Beginning balance | 796 | 188 |
Ending balance | 677 | $ (82) |
Foreign Currency Translation Adjustment | ||
Components of accumulated other comprehensive loss | ||
Beginning balance | 791 | |
Ending balance | 706 | |
Unrealized Gain (Loss) on Available-for-Sale Securities | ||
Components of accumulated other comprehensive loss | ||
Beginning balance | 5 | |
Ending balance | $ (29) |
Employee Stock Plans - Narrativ
Employee Stock Plans - Narrative (Details) shares in Millions | 3 Months Ended |
Apr. 30, 2021purchase_periodshares | |
2018 Equity Incentive Plan | Class A common stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved and available for issuance (in shares) | 26.9 |
2018 ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
ESPP offering period (in months) | 24 months |
Number of purchase periods in offering period | purchase_period | 4 |
Term of purchase period (in months) | 6 months |
Purchase price, percentage of fair market value | 85.00% |
2018 ESPP | Class A common stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved and available for issuance (in shares) | 4.5 |
Stock Options and RSUs | 2006 Stock Plan and 2015 Equity Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Aggregate equity awards outstanding (in shares) | 6.6 |
Employee Stock Plans - Stock Op
Employee Stock Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended |
Apr. 30, 2021 | Jan. 31, 2021 | |
Shares Subject To Outstanding Stock Options | ||
Outstanding, beginning balance (in shares) | 11,812 | |
Granted (in shares) | 135 | |
Exercised (in shares) | (650) | |
Forfeited (in shares) | (419) | |
Outstanding, ending balance (in shares) | 10,878 | 11,812 |
Exercisable (in shares) | 7,367 | |
Vested and expected to vest (in shares) | 10,496 | |
Weighted-Average Exercise Price | ||
Weighted average exercise price, beginning balance (in dollars per share) | $ 8.54 | |
Granted (in dollars per share) | 15.66 | |
Exercised (in dollars per share) | 5.48 | |
Forfeited (in dollars per share) | 13.04 | |
Weighted average exercise price, ending balance (in dollars per share) | 8.64 | $ 8.54 |
Exercisable (in dollars per share) | 5.60 | |
Vested and expected to vest (in dollars per share) | $ 8.47 | |
Average Remaining Contractual Term (Years) | ||
Average remaining contractual term (years), outstanding | 6 years 4 months 24 days | 6 years 7 months 6 days |
Average remaining contractual term (years), exercisable | 5 years 2 months 12 days | |
Average remaining contractual term (years), vested and expected to vest | 6 years 3 months 18 days | |
Aggregate Intrinsic Value | ||
Aggregate intrinsic value, outstanding | $ 87,151 | $ 80,212 |
Aggregate intrinsic value, exercisable | 78,086 | |
Aggregate intrinsic value, vested and expected to vest | $ 85,876 |
Employee Stock Plans - Grant Da
Employee Stock Plans - Grant Date Fair Value and Intrinsic Value of Options Exercised (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Weighted average grant date fair value per share of options granted (in dollars per share) | $ 6.53 | $ 4.21 |
Aggregate intrinsic value of options exercised during each respective period | $ 6,591 | $ 7,499 |
Employee Stock Plans - Valuatio
Employee Stock Plans - Valuation Assumptions for Estimated Fair Value of Stock Options (Details) - Stock options - $ / shares | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of common stock (in dollars per share) | $ 15.66 | $ 10.57 |
Expected volatility (percent) | 42.30% | 41.40% |
Expected term (years) | 6 years 1 month 6 days | 6 years 1 month 6 days |
Risk-free interest rate (percent) | 1.00% | 0.50% |
Expected dividend yield (percent) | 0.00% | 0.00% |
Employee Stock Plans - RSU and
Employee Stock Plans - RSU and Restricted Stock Award Activity (Details) - RSUs and Restricted Shares shares in Thousands | 3 Months Ended |
Apr. 30, 2021$ / sharesshares | |
Number of RSU and Restricted Shares Outstanding | |
Outstanding, beginning balance (in shares) | shares | 8,278 |
Granted (in shares) | shares | 1,644 |
Vested (in shares) | shares | (650) |
Forfeited (in shares) | shares | (718) |
Outstanding, ending balance (in shares) | shares | 8,554 |
Weighted-Average Grant Date Fair Value | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 13.54 |
Granted (in dollars per share) | $ / shares | 15.66 |
Vested (in dollars per share) | $ / shares | 14.04 |
Forfeited (in dollars per share) | $ / shares | 13.96 |
Outstanding, ending balance (in dollars per share) | $ / shares | $ 13.87 |
Employee Stock Plans - Stock-Ba
Employee Stock Plans - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Cost of Revenue | ||
Stock-based compensation expense | $ 13,797 | $ 10,884 |
Cost of subscription revenue | ||
Cost of Revenue | ||
Stock-based compensation expense | 1,043 | 852 |
Cost of professional services revenue | ||
Cost of Revenue | ||
Stock-based compensation expense | 2,001 | 1,650 |
Research and development | ||
Cost of Revenue | ||
Stock-based compensation expense | 4,529 | 3,542 |
Sales and marketing | ||
Cost of Revenue | ||
Stock-based compensation expense | 4,080 | 3,005 |
General and administrative | ||
Cost of Revenue | ||
Stock-based compensation expense | $ 2,144 | $ 1,835 |
Employee Stock Plans - Unrecogn
Employee Stock Plans - Unrecognized Compensation Cost (Details) $ in Thousands | 3 Months Ended |
Apr. 30, 2021USD ($) | |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost, stock options | $ 16,955 |
Weighted-average recognition period (in years) | 2 years 7 months 6 days |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 97,475 |
Weighted-average recognition period (in years) | 3 years 1 month 6 days |
2018 ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 6,619 |
Weighted-average recognition period (in years) | 1 year |
Net Loss Per Share - Basic and
Net Loss Per Share - Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Numerator: | ||
Net loss | $ (17,661) | $ (17,488) |
Denominator: | ||
Weighted-average common shares outstanding, basic (in shares) | 121,354 | 115,139 |
Weighted-average common shares outstanding, diluted (in shares) | 121,354 | 115,139 |
Net loss per share, basic (in dollars per share) | $ (0.15) | $ (0.15) |
Net loss per share, diluted (in dollars per share) | $ (0.15) | $ (0.15) |
Net Loss Per Share - Potentiall
Net Loss Per Share - Potentially Dilutive Securities Not Included in the Diluted Per Share Calculations (Details) - shares shares in Thousands | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities not included in the diluted per share calculation (in shares) | 19,765 | 17,871 |
Issued and outstanding stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities not included in the diluted per share calculation (in shares) | 10,878 | 12,577 |
Unvested RSUs and restricted stock issued and outstanding | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities not included in the diluted per share calculation (in shares) | 8,554 | 4,994 |
Shares committed under ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities not included in the diluted per share calculation (in shares) | 333 | 300 |