Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Mar. 21, 2023 | Jul. 31, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 31, 2023 | ||
Current Fiscal Year End Date | --01-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-40528 | ||
Entity Registrant Name | Sprinklr, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Address Line One | 29 West 35th Street | ||
Entity Address, Address Line Two | 7th floor | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10001 | ||
Entity Tax Identification Number | 45-4771485 | ||
City Area Code | 917 | ||
Local Phone Number | 933-7800 | ||
Title of 12(b) Security | Class A common stock, par value $0.00003 per share | ||
Trading Symbol | CXM | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 740.3 | ||
Documents Incorporated by Reference | Portions of the registrant's Proxy Statement for its 2023 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent stated herein. Such Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the registrant's fiscal year ended January 31, 2023. | ||
Entity Central Index Key | 0001569345 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Common Class A | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 121,712,321 | ||
Common Class B | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 144,188,798 |
Audit Information
Audit Information | 12 Months Ended |
Jan. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | New York, New York |
Auditor Firm ID | 185 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 188,387 | $ 321,426 |
Marketable securities | 390,239 | 210,983 |
Accounts receivable, net of allowance for doubtful accounts of $3,156 and $2,727, respectively | 205,038 | 163,681 |
Prepaid expenses and other current assets | 78,865 | 109,167 |
Total current assets | 862,529 | 805,257 |
Property and equipment, net | 22,885 | 14,705 |
Goodwill and other intangible assets | 50,349 | 50,706 |
Operating lease right-of-use assets | 15,725 | |
Other non-current assets | 73,503 | 49,378 |
Total assets | 1,024,991 | 920,046 |
Current liabilities: | ||
Accounts payable | 30,101 | 15,802 |
Accrued expenses and other current liabilities | 97,524 | 100,220 |
Operating lease liabilities, current | 7,134 | |
Deferred revenue | 324,140 | 279,028 |
Total current liabilities | 458,899 | 395,050 |
Deferred revenue, non-current | 1,371 | 5,325 |
Deferred tax liability, non-current | 1,289 | 1,101 |
Operating lease liabilities, non-current | 9,633 | |
Other liabilities, non-current | 4,467 | 2,721 |
Total liabilities | 475,659 | 404,197 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Treasury stock, at cost, 14,130,784 shares as of January 31, 2023 and 2022, respectively | (23,831) | (23,831) |
Additional paid-in capital | 1,074,149 | 982,122 |
Accumulated other comprehensive loss | (4,384) | (820) |
Accumulated deficit | (496,611) | (441,630) |
Total stockholders’ equity | 549,332 | 515,849 |
Total liabilities and stockholders’ equity | 1,024,991 | 920,046 |
Common Class A | ||
Stockholders’ equity | ||
Common stock | 3 | 3 |
Common Class B | ||
Stockholders’ equity | ||
Common stock | $ 6 | $ 5 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Current assets: | ||
Allowance for doubtful accounts | $ 3,156 | $ 2,727 |
Stockholders’ equity | ||
Treasury stock (in shares) | 14,130,784 | 14,130,784 |
Common Class A | ||
Stockholders’ equity | ||
Common stock, par value (in dollars per share) | $ 0.00003 | $ 0.00003 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 119,477,713 | 105,929,885 |
Common stock, shares outstanding (in shares) | 119,477,713 | 105,929,885 |
Common Class B | ||
Stockholders’ equity | ||
Common stock, par value (in dollars per share) | $ 0.00003 | $ 0.00003 |
Common stock, shares authorized (in shares) | 310,000,000 | 310,000,000 |
Common stock, shares issued (in shares) | 144,263,658 | 150,551,314 |
Common stock, shares outstanding (in shares) | 144,263,658 | 150,551,314 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Revenue: | |||
Revenue | $ 618,190 | $ 492,394 | $ 386,930 |
Costs of revenue: | |||
Cost of revenue | 163,725 | 147,551 | 122,082 |
Gross profit | 454,465 | 344,843 | 264,848 |
Operating expense: | |||
Research and development | 76,658 | 60,591 | 40,280 |
Sales and marketing | 336,719 | 286,963 | 185,797 |
General and administrative | 92,312 | 84,759 | 64,348 |
Litigation settlement | 0 | 12,000 | 0 |
Total operating expense | 505,689 | 444,313 | 290,425 |
Operating loss | (51,224) | (99,470) | (25,577) |
Other income (expense), net | 3,756 | (5,084) | (8,616) |
Loss before provision for income taxes | (47,468) | (104,554) | (34,193) |
Provision for income taxes | 8,274 | 6,916 | 3,777 |
Net loss | (55,742) | (111,470) | (37,970) |
Deemed dividend in relation to tender offer | 0 | 0 | (600) |
Net loss attributable to Sprinklr common stockholders | $ (55,742) | $ (111,470) | $ (38,570) |
Net loss per share attributable to Class A and Class B common stockholders, basic (in dollars per share) | $ (0.21) | $ (0.57) | $ (0.42) |
Net loss per share attributable to Class A and Class B common stockholders, diluted (in dollars per share) | $ (0.21) | $ (0.57) | $ (0.42) |
Weighted average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic (in shares) | 259,530 | 195,020 | 90,378 |
Weighted average shares used in computing net loss per share attributable to Class A and Class B common stockholders, diluted (in shares) | 259,530 | 195,020 | 90,378 |
Subscription | |||
Revenue: | |||
Revenue | $ 548,649 | $ 427,713 | $ 339,586 |
Costs of revenue: | |||
Cost of revenue | 102,276 | 89,896 | 77,033 |
Professional services | |||
Revenue: | |||
Revenue | 69,541 | 64,681 | 47,344 |
Costs of revenue: | |||
Cost of revenue | $ 61,449 | $ 57,655 | $ 45,049 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (55,742) | $ (111,470) | $ (37,970) |
Foreign currency translation adjustments | (3,078) | (1,390) | 1,757 |
Unrealized (losses) gains on investments | (486) | (217) | 18 |
Total comprehensive loss | $ (59,306) | $ (113,077) | $ (36,195) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | ESPP | Senior Subordinated Secured Convertible Note | Senior Subordinated Secured Convertible Note ESPP | Common Stock | Common Stock Class A and Class B Common Stock | Common Stock Class A and Class B Common Stock ESPP | Common Stock Class A and Class B Common Stock Senior Subordinated Secured Convertible Note | Additional Paid-in Capital | Additional Paid-in Capital ESPP | Additional Paid-in Capital Senior Subordinated Secured Convertible Note | Additional Paid-in Capital Senior Subordinated Secured Convertible Note ESPP | Treasury Stock | Accumulated Other Comprehensive (Loss) Income | Accumulated Deficit | Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment |
Beginning balance (in shares) at Jan. 31, 2020 | 102,408,000 | ||||||||||||||||
Beginning balance at Jan. 31, 2020 | $ 245,970 | ||||||||||||||||
Convertible Preferred Stock | |||||||||||||||||
Tender offer repurchases (in shares) | (1,407,000) | ||||||||||||||||
Tender offer repurchases | $ (12,730) | ||||||||||||||||
Issuance of Series G-1 and Series G-2 convertible preferred stock at $9.25 and $11.00 per share, respectively, net of issuance costs (in shares) | 19,902,000 | ||||||||||||||||
Issuance of Series G-1 and Series G-2 convertible preferred stock at $9.25 and $11.00 per share, respectively, net of issuance costs | $ 191,752 | ||||||||||||||||
Ending balance (in shares) at Jan. 31, 2021 | 120,903,000 | ||||||||||||||||
Ending balance at Jan. 31, 2021 | $ 424,992 | ||||||||||||||||
Beginning balance (in shares) at Jan. 31, 2020 | 85,626,000 | 0 | |||||||||||||||
Beginning balance at Jan. 31, 2020 | (14,445) | $ 3 | $ 0 | $ 50,117 | $ (17,957) | $ (988) | $ (291,590) | ||||||||||
Beginning balance (in shares) at Jan. 31, 2020 | 13,376,000 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Stock-based compensation - equity classified awards | 44,159 | 44,159 | |||||||||||||||
Exercise of stock options and vesting of restricted shares (in shares) | 9,572,000 | ||||||||||||||||
Exercise of stock options and vesting of restricted shares | 16,333 | $ 1 | 16,332 | ||||||||||||||
Tender offer repurchases (in shares) | (755,000) | 755,000 | |||||||||||||||
Tender offer repurchases | (20,390) | (1,186) | $ (5,874) | (600) | |||||||||||||
Issuance of common stock to a third party (in shares) | 1,013,000 | ||||||||||||||||
Issuance of common stock to a third party | 5,000 | 5,000 | |||||||||||||||
Issuance of common stock warrants | 7,639 | 7,639 | |||||||||||||||
Other comprehensive income (loss) | 1,775 | 1,775 | |||||||||||||||
Net loss | (37,970) | (37,970) | |||||||||||||||
Ending balance (in shares) at Jan. 31, 2021 | 95,456,000 | 0 | |||||||||||||||
Ending balance at Jan. 31, 2021 | $ 193,853 | $ 4 | $ 0 | 122,061 | $ (23,831) | 787 | (330,160) | ||||||||||
Ending balance ( in shares) at Jan. 31, 2021 | 14,131,000 | ||||||||||||||||
Convertible Preferred Stock | |||||||||||||||||
Conversion of convertible preferred stock to common stock upon initial public offering (in shares) | (120,903,000) | ||||||||||||||||
Conversion of convertible preferred stock to common stock upon initial public offering | $ (424,992) | ||||||||||||||||
Ending balance (in shares) at Jan. 31, 2022 | 0 | ||||||||||||||||
Ending balance at Jan. 31, 2022 | $ 0 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Issuance of common shares (in shares) | 18,288,000 | 552,000 | |||||||||||||||
Issuance of common shares | 275,973 | $ 7,105 | 275,973 | $ 7,105 | |||||||||||||
Conversion of senior subordinated secured convertible notes (in shares) | 120,903,000 | 9,694,000 | |||||||||||||||
Conversion of senior subordinated secured convertible notes | 0 | $ 82,114 | $ 4 | 424,988 | $ 82,114 | ||||||||||||
Stock-based compensation - equity classified awards | 49,827 | 49,827 | |||||||||||||||
Reclassification of common stock to Class B common stock (in shares) | (103,045,000) | 103,045,000 | |||||||||||||||
Reclassification of common stock to Class B common stock | 0 | $ (4) | $ 4 | ||||||||||||||
Exercise of stock options and vesting of restricted shares (in shares) | 7,589,000 | 1,999,000 | |||||||||||||||
Exercise of stock options and vesting of restricted shares | 20,054 | 20,054 | |||||||||||||||
Shares issued upon cashless exercise of common stock warrants (in shares) | 230,000 | ||||||||||||||||
Issuance of common stock under deferred stock compensation plan (in shares) | 1,770,000 | ||||||||||||||||
Other comprehensive income (loss) | (1,607) | (1,607) | |||||||||||||||
Net loss | (111,470) | (111,470) | |||||||||||||||
Ending balance (in shares) at Jan. 31, 2022 | 0 | 256,481,000 | |||||||||||||||
Ending balance at Jan. 31, 2022 | $ 515,849 | $ 761 | $ 0 | $ 8 | 982,122 | $ (23,831) | (820) | (441,630) | $ 761 | ||||||||
Ending balance ( in shares) at Jan. 31, 2022 | 14,130,784 | 14,131,000 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Accounting standards update, extensible enumeration | Accounting Standards Update 2016-13 [Member] | ||||||||||||||||
Ending balance (in shares) at Jan. 31, 2023 | 0 | ||||||||||||||||
Ending balance at Jan. 31, 2023 | $ 0 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Issuance of common shares (in shares) | 1,259,000 | ||||||||||||||||
Issuance of common shares | $ 10,231 | $ 1 | $ 10,230 | ||||||||||||||
Stock-based compensation - equity classified awards | 57,057 | 57,057 | |||||||||||||||
Exercise of stock options and vesting of restricted shares (in shares) | 6,014,000 | ||||||||||||||||
Exercise of stock options and vesting of restricted shares | 24,740 | 24,740 | |||||||||||||||
Other comprehensive income (loss) | (3,564) | (3,564) | |||||||||||||||
Other adjustments (in shares) | (13,000) | ||||||||||||||||
Net loss | (55,742) | (55,742) | |||||||||||||||
Ending balance (in shares) at Jan. 31, 2023 | 0 | 263,741,000 | |||||||||||||||
Ending balance at Jan. 31, 2023 | $ 549,332 | $ 0 | $ 9 | $ 1,074,149 | $ (23,831) | $ (4,384) | $ (496,611) | ||||||||||
Ending balance ( in shares) at Jan. 31, 2023 | 14,130,784 | 14,131,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Cash flow from operating activities: | |||
Net loss | $ (55,742) | $ (111,470) | $ (37,970) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization expense | 12,051 | 8,058 | 5,690 |
Bad debt expense | 4,079 | (186) | 689 |
Stock-based compensation, net of amounts capitalized | 55,517 | 50,131 | 43,883 |
Litigation settlement | 0 | 12,000 | 0 |
Non-cash interest paid in kind and discount amortization | 0 | 3,266 | 5,523 |
Non-cash lease expense | 6,588 | ||
Deferred income taxes | 166 | 235 | 110 |
Other non-cash items, net | (2,697) | (1,272) | (712) |
Changes in operating assets and liabilities: | |||
Accounts receivable | (44,751) | (47,094) | (9,781) |
Prepaid expenses and other current assets | 29,092 | (8,220) | (28,709) |
Other non-current assets | (24,376) | (6,764) | (7,082) |
Accounts payable | 14,463 | (1,095) | 6,077 |
Operating lease liabilities | (6,342) | ||
Accrued expenses and other current liabilities | 6,688 | 25,510 | 12,286 |
Litigation settlement | (12,000) | 0 | 0 |
Deferred revenue | 41,465 | 43,404 | 17,511 |
Other liabilities | 2,459 | 575 | (204) |
Net cash provided by (used in) operating activities | 26,660 | (32,922) | 7,311 |
Cash flow from investing activities: | |||
Purchases of marketable securities | (816,708) | (267,826) | (212,973) |
Sales of marketable securities | 2,838 | 56,652 | 0 |
Maturities of marketable securities | 636,825 | 211,555 | 0 |
Purchases of property and equipment | (6,091) | (6,148) | (2,701) |
Capitalized internal-use software | (10,358) | (6,258) | (3,783) |
Acquisitions, net of cash acquired | 0 | (3,625) | 0 |
Net cash used in investing activities | (193,494) | (15,650) | (219,457) |
Cash flow from financing activities: | |||
Proceeds from issuance of common stock upon initial public offering, net of underwriting discounts, commissions and other offering costs | 0 | 275,973 | 0 |
Proceeds from issuance of convertible preferred stock, net of issuance costs | 0 | 0 | 191,752 |
Proceeds from Senior subordinated secured convertible notes | 0 | 0 | 73,425 |
Proceeds from issuance of stock warrants | 0 | 0 | 7,639 |
Repurchase of preferred stock | 0 | 0 | (12,416) |
Deemed dividend on preferred stock | 0 | 0 | (600) |
Proceeds from short-term borrowings | 0 | 0 | 49,973 |
Repayments of short-term borrowings | 0 | 0 | (49,973) |
Payments of debt and equity issuance costs | 0 | 0 | (475) |
Repurchase of common stock | 0 | 0 | (5,874) |
Proceeds from issuance of common stock upon exercise of stock options | 24,740 | 20,054 | 16,333 |
Proceeds from issuance of common stock upon ESPP purchase | 10,231 | 7,105 | 0 |
Net cash provided by financing activities | 34,971 | 303,132 | 269,784 |
Effect of exchange rate fluctuations on cash and cash equivalents | (1,176) | (1,171) | (71) |
Net change in cash and cash equivalents | (133,039) | 253,389 | 57,567 |
Cash and cash equivalents at beginning of period | 321,426 | 68,037 | 10,470 |
Cash and cash equivalents at end of period | 188,387 | 321,426 | 68,037 |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes, net of refunds | 6,644 | 3,458 | 3,187 |
Cash paid for interest | 0 | 0 | 224 |
Supplemental disclosure for non-cash investing and financing: | |||
Right-of-use assets obtained in exchange for operating lease liabilities | 8,948 | ||
Accrued purchases of property and equipment | 1,445 | 216 | 382 |
Stock-based compensation expense capitalized in internal-use software | 2,540 | 696 | 0 |
Net exercise of common stock warrants | 0 | 18 | 0 |
Accrued for asset retirement obligations | 0 | 0 | 476 |
Common stock issued in exchange for other non-cash assets | $ 0 | $ 0 | $ 5,000 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders’ Equity (Parenthetical) | Jan. 31, 2021 $ / shares |
Series G-1 Preferred Stock | |
Offering price (in dollars per share) | $ 9.25 |
Series G-2 Preferred Stock | |
Offering price (in dollars per share) | $ 11 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Jan. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business Description of Business Founded in 2009, Sprinklr, Inc. (“Sprinklr” or the “Company”) provides enterprise cloud software products that enable organizations to do marketing, advertising, research, care, sales and engagement across modern channels including social, messaging, chat and text through its unified Customer Experience Management (“CXM”) software platform. The Company was incorporated in Delaware in 2011 and is headquartered in New York, USA with 18 operating subsidiaries globally. Initial Public Offering On June 25, 2021, the Company completed its initial public offering (“IPO”), in which it issued and sold 16,625,000 shares of its Class A common stock at a public offering price of $16.00 per share. On July 1, 2021, the underwriters’ option to purchase 1,662,500 additional shares of Class A common stock was exercised in full. The Company received net proceeds of $276.0 million after deducting underwriting discounts and commissions and other offering expenses of $16.6 million. In connection with the IPO, all of the then-outstanding shares of convertible preferred stock automatically converted into an aggregate of 120,902,273 shares of the Company’s Class B common stock on a one-to-one basis, the senior subordinated secured convertible notes automatically converted into an aggregate of 9,694,004 shares of Class B common stock and all of the Company’s outstanding common stock was reclassified into shares of Class B common stock on a one-to-one basis. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and include the consolidated accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions made in the accompanying consolidated financial statements include, but are not limited to, revenue recognition and stock-based compensation, including historical common stock valuations. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and on assumptions that it believes are reasonable and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates and assumptions. Segments The Company operates in one operating segment because the Company’s offerings operate on its single Customer Experience Management Platform, and its products are deployed in a similar way. The Company’s chief operating decision maker evaluates the Company’s financial information and assesses the performance of the Company on a consolidated basis. Because the Company operates in one operating segment, all required financial segment information can be found in the consolidated financial statements. Foreign Currency The functional currency of the Company’s foreign subsidiaries is generally their respective local currency. Assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars at the exchange rates in effect at the balance sheet dates, with the resulting translation adjustments recorded to a separate component of accumulated other comprehensive loss. Income and expense accounts are translated at average exchange rates during the year. Foreign currency remeasurement and transaction gains and losses are recorded in other income (expense), net, in the consolidated statements of operations. The Company recognized net foreign currency transaction losses of $4.7 million, $1.4 million and $2.2 million in the fiscal years ended January 31, 2023, 2022 and 2021, respectively. As of January 31, 2023, the cumulative translation adjustment within accumulated other comprehensive loss was $3.7 million. Cash Equivalents The Company considers all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents. Marketable Securities The Company's marketable securities consist of U.S. Treasury securities, corporate and municipal bonds, money market funds, agency securities, commercial paper, certificates of deposit, and time deposits with maturity dates of more than three months from the date of purchase. The Company determines the appropriate classification of marketable securities at the time of purchase and reevaluates such designation at each balance sheet date. The Company classifies and accounts for its marketable securities as available-for-sale securities as the Company may sell these securities at any time for use in the current operation or for other purposes, even prior to maturity. As a result, the Company classifies marketable securities as current assets in the consolidated balance sheets. All marketable securities are recorded at their estimated fair values. Premiums and discounts are amortized or accreted over the life of the related available-for-sale security as an adjustment to yield. Interest income is recognized when earned. Unrealized gains and losses on these marketable securities are reported as a separate component of accumulated other comprehensive loss on the consolidated balance sheets until realized. Realized gains and losses are determined based on the specific identification method and are reported in other expense, net in the consolidated statements of operations. Available-for-sale debt securities are considered impaired if the fair value of the investment is less than amortized cost. If it is more likely than not that the Company will have to sell the security before recovery of its amortized cost basis, the security is written down to its fair value and the difference is recognized in operating loss. If the Company deems it is not likely to sell such security before recovery of its amortized cost basis, the Company bifurcates the impairment into credit-related and non-credit-related components. In evaluating whether a credit-related loss exists, the Company considers a variety of factors including: (i) the extent to which the fair value is less than the amortized cost basis, (ii) adverse conditions specifically related to the issuer of a security, an industry or geographic area, (iii) the failure of the issuer of the security to make scheduled interest or principal payments and (iv) any changes to the rating of the security by a rating agency. Any portion of the loss attributable to credit-related components is recorded within the provision for credit losses in the Company’s consolidated statement of operations while any non-credit related components are reflected within accumulated other comprehensive loss on the consolidated balance sheets, net of applicable taxes. As of January 31, 2023 and 2022, there have been no securities with an unrealized loss position that the Company would have to sell before recovery of its amortized cost basis, and therefore the Company has not bifurcated the impairment. Fair Values Measurement The Company considers the carrying amounts of financial instruments, including cash, accounts receivable, accounts payable and accrued expenses to approximate their fair values because of their relatively short maturities. The Company measures certain financial assets at fair value based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. The Company evaluates these inputs and recognizes transfers between levels, if any, at the balance sheet date. The Company has not elected the fair value measurement option for assets not required to be measured at fair value on a recurring basis. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at invoiced amounts, net of allowance for doubtful accounts, if applicable, and are unsecured and do not bear interest. The allowance for doubtful accounts is based on the probability of future collection under the current expect credited loss (“CECL”) impairment model under ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Assets, which was adopted by the Company on January 31, 2023, with an effective date of February 1, 2022, as discussed below within Recently Adopted Accounting Pronouncements . Under the CECL impairment model, the Company determines its allowance by applying a loss-rate method based on an aging schedule using the Company’s historical loss rate. The Company also considers reasonable and supportable current information in determining its estimated loss rates, such as external forecasts, macroeconomic trends or other factors including customers’ credit risk and historical loss experience. The adequacy of the allowance is evaluated on a regular basis. Account balances are written off after all means of collection are exhausted and the balance is deemed uncollectible. Subsequent recoveries are credited to the allowance. Changes in the allowance are recorded in sales and marketing expense in the period incurred. Prior to February 1, 2022, accounts receivable was presented net of allowance for doubtful accounts based on the credit risk of specific clients, past collection history and management’s evaluation of accounts receivable. Property and Equipment Property and equipment, including leasehold improvements, are stated at cost, less accumulated depreciation and amortization. Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the asset, which is generally two The Company capitalizes qualifying internally-developed software costs incurred in connection with the Company’s internal-use software platform. These capitalized costs are related to the cloud-based software platform that the Company hosts, which is accessed by its clients on a subscription basis. Costs are capitalized during the application development stage, provided that management with the relevant authority authorizes and commits to the funding of the software project, it is probable the project will be completed, the software will be used to perform the functions intended and certain functional and quality standards have been met. Capitalized internal-use software costs are amortized on a straight-line basis over their estimated useful life, which is generally three years. Costs incurred for specific upgrades and enhancements when it is probable the expenditures will result in additional functionality are capitalized and amortized over the estimated useful life of the enhancements. Costs related to preliminary project activities and post-implementation operations activities, including training and maintenance, are expensed as incurred. Business Combinations When the Company acquires businesses, it allocates the purchase price to tangible assets, liabilities and identifiable intangible assets acquired with any residual purchase price 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, particularly with respect to intangible assets at the acquisition date, deferred revenue and contingent consideration, where applicable. These estimates can include, but are not limited to, historical experience and information obtained from the management of the acquired companies, the cash flows that an asset is expected to generate in the future, the weighted-average cost of capital and the cost savings expected to be derived from acquiring an asset. These estimates are inherently uncertain and unpredictable and unanticipated events and circumstances may occur which could affect the accuracy or validity of such estimates. Goodwill Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in connection with business combinations accounted for using the purchase method of accounting. Goodwill is not amortized, but rather is tested for impairment annually and more frequently upon the occurrence of certain events. The Company performs its annual impairment test of goodwill in the fourth quarter of each fiscal year, using November 1 carrying values, or whenever events or circumstances indicate that goodwill may not be recoverable. Triggering events that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate or a significant decrease in expected cash flows. In performing its impairment test, the Company first assesses qualitative factors to determine whether it is more-likely-than-not that the fair value of the reporting unit is less than its carrying value. In performing the qualitative assessment, the Company reviews factors such as financial performance, macroeconomic conditions, industry and market considerations. If the Company elects this option and believes, as a result of the qualitative assessment, that it is more-likely-than-not that the carrying value of the reporting unit exceeds the fair value, the quantitative impairment test is required; otherwise, no further testing is required. Alternatively, the Company may elect to bypass the qualitative assessment and perform the quantitative impairment test instead, or if the Company reasonably determines that it is more-likely-than-not that the fair value is less than the carrying value, the Company performs its annual, or interim, goodwill impairment test by comparing the fair value of the reporting unit with the carrying amount. The Company will recognize an impairment for the amount by which the carrying amount exceeds the reporting unit's fair value. The Company did not record any goodwill impairment charges in the years ended January 31, 2023, 2022 or 2021. Impairment of Long-Lived Assets The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its long-lived assets, including property, equipment, capitalized internal-use software and other assets, including identifiable definite-lived intangible assets, may not be recoverable. When such events or changes in circumstances occur, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through their undiscounted expected future cash flow. If the future undiscounted cash flow is less than the carrying amount of these assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. If the useful life is shorter than originally estimated, the Company amortizes the remaining carrying value over the new shorter life. Leases On February 1, 2022, the Company adopted the lease accounting requirements of Accounting Standard Update (“ASU”) 2016-02, Leases (“Topic 842”) . Under Topic 842, the Company determines if an arrangement is a lease at inception, and leases are classified at commencement as either operating or finance leases. As of adoption and January 31, 2023, the Company did not have any finance leases. Right-of-use (“ROU”) assets and lease liabilities are recognized at commencement based on the present value of the minimum lease payments over the lease term. The Company utilizes certain practical expedients and policy elections available under Topic 842, including (i) leases with an initial term of 12 months or less are not recognized on the balance sheet (ii) lease components are not separated from non-lease components for all asset classes and (iii) non-lease components that are not fixed are expensed as incurred as variable lease costs. The Company uses the incremental borrowing rate based on information available at the commencement date in determining the present value of future lease payments. The rate is an estimate of the collateralized borrowing rate the Company would incur on future lease payments over a similar term. The Company leases facilities under non-cancelable operating lease agreements. Certain of the operating lease agreements contain rent concessions and rent escalations that are included in the present value calculation of minimum lease payments. The lease term begins on the date the Company has the right to use the leased property. Lease terms may include options to extend or terminate the lease and these options are included in the ROU asset and lease liability when it is reasonably certain that the option will be exercised. The Company's lease agreements do not contain residual value guarantees or covenants. Prior to the February 1, 2022 adoption of Topic 842, ROU asset and lease liabilities were not recognized for operating leases. Rent concessions and rent escalation provisions were considered in determining the straight-line rent expense to be recovered over the lease term. Concentration of Risk and Significant Customers The Company has no significant off-balance sheet risks related to foreign currency exchange contracts, option contracts or other foreign currency hedging arrangements. The Company’s financial instruments that are potentially subject to credit risk consist primarily of cash and cash equivalents and accounts receivable. Although the Company deposits its cash with multiple financial institutions, its deposits generally exceed federally insured limits. To manage credit risk related to accounts receivable, the Company maintains an allowance for credit losses. The allowance is determined by applying a loss-rate method based on an aging schedule using the Company's historical loss rate. The Company also considers reasonable and supportable current and forecasted information in determining its estimated loss rates, such as external forecasts, macroeconomic trends, or other factors including customers’ credit risk and historical loss experience. The Company’s accounts receivable are derived from invoiced customers located primarily in North America and Europe. No single customer accounted for more than 10% of total revenue in the years ended January 31, 2023, 2022 or 2021. In addition, no single customer accounted for more than 10% of total accounts receivable as of January 31, 2023 or 2022. In addition, the Company relies upon third-party hosted infrastructure partners globally, including Amazon Web Services, to serve customers and operate certain aspects of our services, such as environments for development testing, training, sales demonstrations, and production usage. Given this, any disruption of or interference at the Company’s hosted infrastructure partners would impact the Company’s operations and its business could be adversely impacted. Revenue Recognition The Company accounts for revenue in accordance with ASU No. 2014-09, Revenue from Contracts with Customers (ASC 606) . For further discussion of the Company’s accounting policies related to revenue see Note 3, Revenue Recognition. Costs of Revenue Costs of subscription revenue and professional services revenue is expensed as incurred. Costs of subscription revenue consists primarily of expenses related to hosting the Company’s software platform, including data center operations costs and personnel and related expenses directly associated with delivering the Company’s cloud infrastructure, the costs associated with purchasing third-party data that is utilized in providing elements of the platform and costs to provide platform support to the Company’s customers, including personnel and related expenses. These costs include salaries, benefits, bonuses, stock-based compensation, as well as allocated overhead. Costs of professional services consists primarily of personnel and related expenses directly associated with the Company’s professional services organization. These costs include salaries, benefits, bonuses, stock-based compensation, as well as allocated overhead, together with the costs of subcontracted third-party professional services vendors. Overhead associated with facilities and depreciation is allocated to cost of revenue based on relative headcount in those departments. Research and Development Research and development expenses consist primarily of costs relating to the maintenance, continued development and enhancement of the Company’s cloud-based software platform and include personnel-related expenses and stock-based compensation for our research and development organization, professional fees, travel expenses and allocated overhead expenses, including facilities costs. Research and development expenses are expensed as incurred, except for internal-use software development costs that qualify for capitalization. Advertising costs Advertising costs include costs incurred to promote the Company’s subscription and professional services. These costs are expensed as incurred and were $2.9 million, $6.8 million and $0.2 million in the years ended January 31, 2023, 2022 and 2021, respectively. Warranties The Company’s cloud-based software platform is generally warranted to perform materially in accordance with the Company’s online documentation and the terms of the agreement with a customer, under normal use and circumstances. Additionally, our contracts generally include provisions for indemnifying customers against liabilities if use of our software platform infringe a third party’s intellectual property rights, and we may also incur liabilities if we breach the security, privacy and/or confidentiality obligations in our contracts. To date, we have not incurred any material costs, and we have not accrued any liabilities in the accompanying consolidated financial statements as of January 31, 2023 or 2022 as a result of these obligations. Certain of the Company’s arrangements may include certain service level agreements with its customers committing to certain levels of platform uptime and performance and permitting those customers to receive credits in the event that the Company fails to meet those levels. To date, the Company has not incurred or experienced any significant failures to meet defined levels of availability and performance of those agreements and, as a result, the Company has not accrued any liabilities related to such obligations in the accompanying consolidated financial statements as of January 31, 2023 or 2022. Stock-Based Compensation The Company accounts for stock-based compensation as an expense in the statements of operations based on the awards’ grant date fair values. Options The Company estimates the fair value of service-based options granted using the Black-Scholes option pricing model. Stock options that included performance and market conditions are valued using the Monte-Carlo simulation model. The Black-Scholes option pricing model requires inputs based on certain assumptions, including (i) the fair value per share of the Company’s common stock (ii) the expected stock price volatility, (iii) the calculation of expected term of the award, (iv) the risk-free interest rate and (v) expected dividends. A Monte-Carlo simulation is an analytical method used to estimate value by performing a large number of simulations or trial runs and determining a value based on the possible outcomes from these trial runs. Prior to becoming a public company, the Company’s board of directors determined the fair value of its common stock using a number of objective and subjective factors, as discussed in Note 12, Stock-based Compensation , with input from management and valuations performed by an independent third-party valuation specialist. Subsequent to the IPO, the Company determines the fair value using the closing price, on the date of grant, of its Class A common stock, which is publicly traded on the New York Stock Exchange (“NYSE”). The fair value of stock-based payments is recognized as compensation expense, net of expected forfeitures, over the requisite service period, which is generally the vesting period. The fair value of stock-based payments for options that include performance and market conditions is recognized as compensation expense over the requisite service period as achievement of the performance objective becomes probable. Restricted Stock Units Prior to the IPO, the Company estimated fair value of its restricted stock units (“RSUs”) based on the fair value of the underlying common stock, which was estimated similarly to its options as discussed above. Subsequent to the IPO, the Company determines the fair value using the closing price, on the date of grant, of its Class A common stock, which is publicly traded on the NYSE. Stock-based compensation for RSUs is recognized over the requisite service period, which is generally the vesting period, net of expected forfeitures. Performance-Based Stock Units The Company issued certain performance-based stock units (“PSUs”) that vest upon the satisfaction of time-based service, performance-based and market conditions. For the units that vest upon the achievement of certain performance and market conditions, the Company estimated the grant date fair value using a Monte Carlo simulation. The simulation modeled multiple stock price paths in order to estimate the grant date fair value of those with market conditions while the estimated grant date fair value of those with performance conditions was based on the probability of those conditions being met. The performance-based vesting condition was satisfied on June 22, 2021, upon the effectiveness of the Company’s registration statement filed under the Securities Act for the sale of the Company’s common stock in relation to its IPO. Refer to Note 12, Stock-Based Compensation , for further detail on stock-based compensation recognition for the PSUs. Employee Stock Purchase Plan The fair value of the share purchase rights under the Company’s 2021 Employee Stock Purchase Plan (“ESPP”) is measured based on the grant date fair value using the Black-Scholes option pricing model. Refer to Note 12, Stock-Based Compensation , for further detail on assumptions used in determining the grant date fair value and stock-based compensation recognition for the Company’s ESPP grants. Income Taxes The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. Management makes estimates, assumptions and judgements to determine the Company’s provision for or benefit from income taxes, deferred tax assets and liabilities and any valuation allowances recorded against the Company’s deferred tax assets. The Company also assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent that the Company believes that recovery is not more likely than not, the Company will establish a valuation allowance. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases (Topic 842) , and additional changes, modifications, clarifications or interpretations related to this guidance thereafter (“ASU 2016-02”). ASU 2016-02 requires a reporting entity to recognize ROU assets and lease liabilities on the balance sheet for operating leases to increase transparency and comparability. The Company adopted this standard on February 1, 2022 and elected the package of transition practical expedients which allowed the Company to carry forward prior conclusions related to: (i) whether any expired or existing contracts are or contain leases, (ii) the classification for any expired or existing leases and (iii) initial direct costs for existing leases. Additionally, the Company elected the practical expedient of not separating lease components from non-lease components for all asset classes. The Company also made an accounting policy election to not record ROU assets or lease liabilities for leases with an initial term of 12 months or less and will recognize payments for such leases in the Company’s consolidated statements of operations on a straight-line basis over the lease term. The Company recorded lease liabilities and corresponding ROU assets of approximately $14.0 million upon adoption of this standard. In June 2016, the FASB issued ASU 2016-13, with subsequent amendments, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“Topic 326”). The Company adopted Topic 326 on January 31, 2023, with an effective date of February 1, 2022, which amended the impairment model by requiring entities to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. The Company utilized the modified-retrospective approach at adoption, under which prior period comparable financial information was not adjusted. The adoption did not have a material impact on the consolidated financial statements and related disclosures. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Jan. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company derives its revenues primarily from two sources: • Subscription revenue consists of subscription fees from customers accessing the Company’s cloud-based software platform and applications, as well as related customer support services; and • Professional services revenue consists of fees associated with providing services that educate and assist the Company’s customers with the configuration and optimization of the Company’s software platform and applications. Professional services revenue also includes managed services fees where the Company’s consultants work as part of its customers’ teams to help leverage the subscription service to execute on their customer experience management goals. The Company recognizes revenue upon transfer of control of promised products and services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. 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 • Recognition of revenue when, or as, the performance obligation is satisfied Subscription revenue is recognized ratably over the contract term beginning on the commencement date of each contract, which is the date the Company’s service is made available to customers. Subscription revenue includes customer support services, which together with the accessing of the Company’s cloud-based software platform, generally constitute a single performance obligation comprised of a series of distinct services that are substantially the same and have the same pattern of revenue recognition. Amounts that have been invoiced because they have the unconditional right to consideration are recorded in accounts receivable and in deferred revenue or revenue, depending on whether the revenue recognition criteria have been met, with the majority being invoiced annually in advance of performance obligations. When determining the transaction price of a contract, an adjustment is made if payment from the customer occurs either significantly before or significantly after performance, resulting in a significant financing component. Applying the practical expedient in the FASB Accounting Standards Codification Topic 606, Revenue from Contracts with Customers , the Company does not assess whether a significant financing component exists if the period between when the Company performs its obligations under the contract and when the customer pays is one year or less. One of the Company’s contracts contained a significant financing component as of January 31, 2023 as a result of an advance payment from a large customer for a multi-year contract in the prior fiscal year. None of the Company’s other contracts contained a significant financing component at January 31, 2023. Professional services revenues are recognized as the services are rendered for time and materials contracts or on a proportional performance basis for fixed price contracts. The majority of the Company’s professional services arrangements are fixed price contracts. The Company enters into arrangements where it provides managed services associated with assisting its customers in publishing advertisements on social media channels. As part of those arrangements the Company is occasionally required to purchase advertising space from social media channels on behalf of its customers and invoice those costs back to its customer. Revenue from such arrangements is recognized on a net basis as the Company has determined that it is acting as an agent in these transactions. Some of the Company’s product offerings include service-level agreements warranting defined levels of uptime reliability and performance and permitting those customers to receive credits for future services in the event that it fails to meet those levels. To date, the Company has not accrued for any significant liabilities in the accompanying condensed consolidated financial statements as a result of these service-level agreements. For contracts that are modified for changes in contract specification and requirements, the Company analyzes the modification to determine the accounting treatment of the contract modification as a separate contract, prospectively or through a cumulative catch-up adjustment. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Contracts with Multiple Performance Obligations The Company executes arrangements that include multiple performance obligations (consisting of subscription and professional services). Additionally, the Company is often party to multiple concurrent contracts or contracts pursuant to which a client may purchase a combination of services. These situations require judgment to determine whether the multiple promises are separate performance obligations. Once the Company has determined the performance obligations, the Company determines the transaction price. The Company allocates the transaction price to each performance obligation on a relative standalone selling price (“SSP”) basis. The SSP is the price at which the Company would sell promised subscription or professional services separately to a customer. The determination of SSP for each distinct performance obligation requires judgement. The Company determines SSP based on its overall pricing objective, taking into consideration contractually stated prices, size of the arrangement renewal contracts, list prices and internal discounting tables. Costs to Obtain Customer Contracts Costs to obtain customer contracts, including commissions earned, that are considered incremental and recoverable are capitalized and amortized on a straight-line basis over the anticipated period of benefit. The Company determined the period of benefit by taking into consideration the length of its customer contracts, customer relationship period, technology lifecycle, and other factors. The Company has historically estimated such period of benefit to be three years. During the first quarter of fiscal 2023, the Company updated the period of benefit, noting that recent customer relationship periods extended to an average period of five years. Accordingly, the Company noted a change in the estimate of the amortization period of these costs and will prospectively amortize over a period of benefit of five years. The change in amortization period resulted in an immaterial impact to sales and marketing expense for the year ended January 31, 2023. Sales commissions paid for renewals are not commensurate with commissions paid on the initial contract given the substantive difference in commission rates in proportion to their respective contract values. Amortization expense is recorded in sales and marketing expense within the Company’s consolidated statement of operations. Capitalized costs to obtain customer contracts as of January 31, 2023 were $113.5 million, of which $44.1 million is included in prepaid expenses and other current assets and $69.4 million within other non-current assets. Capitalized costs to obtain customer contracts as of January 31, 2022 were $83.0 million, of which $40.7 million is included in prepaid expenses and other current assets and $42.3 million within other non-current assets. During the years ended January 31, 2023, 2022 and 2021, the Company amortized $44.7 million, $35.5 million and $26.6 million, respectively, of costs to obtain customer contracts, included in sales and marketing expense. Deferred Revenue The Company invoices customers for subscriptions to its products in varying billing cycles with the majority being invoiced annually in advance of performance obligations, and accounts receivable are recorded when the right to consideration becomes unconditional. Deferred revenue consists primarily of customer billings made in advance of performance obligations being satisfied and revenue being recognized. The term between invoicing and when payment is due is not significant and the Company generally does not provide financing arrangements to customers. Deferred revenue associated with performance obligations that are anticipated to be satisfied, and thus to be revenue recognized, during the succeeding 12-month period is recorded as current deferred revenue and the remaining portion is recorded as deferred revenue, non-current. The Company recognized revenue of $276.4 million, $216.4 million and $180.0 million during the years ended January 31, 2023, 2022 and 2021, respectively, that was included in the deferred revenue balances at the beginning of the respective periods. The Company receives payments from customers based on billing schedules as established in its contracts. Contract assets represent amounts for which the Company has recognized revenue in excess of billings pursuant to the revenue recognition guidance. As of January 31, 2023 and 2022, contract assets were $4.8 million and $3.2 million, respectively, and were included in prepaid expenses and other current assets. Remaining performance obligations represent contracted revenues that had not yet been recognized and include deferred revenues and amounts that will be invoiced and recognized in future periods. As of January 31, 2023, the Company’s remaining performance obligations were $719.5 million, approximately $485.2 million of which the Company expects to recognize as revenue over the next 12 months and the remaining balance will be recognized thereafter. As of January 31, 2022, the Company’s remaining performance obligations were previously disclosed as $586.4 million but should have been $569.5 million, approximately $395.0 million (previously disclosed as $409.2 million) of which the Company expected to recognize as revenue over the next 12 months. The Company believes that the impact was immaterial to the prior year consolidated financial statements. Disaggregation of Revenues The Company disaggregates its revenue from contracts with customers by geographic region, as it believes that it best depicts how the nature, amount, timing, and uncertainty of its revenues and cash flows are affected by economic factors. Refer to Note 15, Geographic Information, for revenue by geographic location. |
Marketable Securities
Marketable Securities | 12 Months Ended |
Jan. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Marketable Securities The following is a summary of available-for-sale marketable securities, excluding those securities classified within cash and cash equivalents on the consolidated balance sheets: January 31, 2023 (in thousands) Amortized Cost Unrealized Gain Unrealized Losses Fair Value Corporate bonds $ 39,922 $ 8 $ (68) $ 39,862 Municipal bonds 12,429 22 — 12,451 U.S. government and agency securities 128,898 6 (367) $ 128,537 Certificates of deposit 59,545 28 (155) $ 59,419 Commercial paper 150,131 41 (202) 149,970 Marketable securities $ 390,925 $ 105 $ (791) $ 390,239 January 31, 2022 (in thousands) Amortized Cost Unrealized Gain Unrealized Losses Fair Value Corporate bonds $ 124,639 $ 1 $ (163) $ 124,477 U.S. government and agency securities 37,725 — (35) 37,690 Commercial paper 48,818 — (2) 48,816 Marketable securities $ 211,182 $ 1 $ (200) $ 210,983 As of January 31, 2023 and 2022, the maturities of available-for-sale marketable securities did not exceed 12 months. The following table presents estimated fair value and gross unrealized losses of debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by security category and length of time such securities have been in a continuous unrealized loss position as of January 31, 2023. There are no securities that have been in an unrealized loss position for greater than 12 months. There are no expected credit losses that have been recorded against the Company’s investment securities as of January 31, 2023. Less Than One Year Fair Value Gross Unrealized Losses Corporate bonds $ 39,862 $ (68) U.S. government and agency securities $ 128,537 $ (367) Certificate of deposits $ 59,419 $ (155) Commercial paper $ 149,970 $ (202) |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables present information about the Company’s financial assets that have been measured at fair value on a recurring basis as of January 31, 2023 and 2022, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value: January 31, 2023 January 31, 2022 (in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial Assets: Cash Equivalents: Money market funds $ 73,851 $ — $ — $ 73,851 $ 281,091 $ — $ — $ 281,091 Marketable Securities: Corporate bonds — 39,862 — 39,862 — 124,477 — 124,477 Municipal bonds — 12,451 — 12,451 — — — — U.S. government and agency securities — 128,537 — 128,537 — 37,690 — 37,690 Certificates of deposit — 59,419 — 59,419 — — — — Commercial paper — 149,970 — 149,970 — 48,816 — 48,816 Total financial assets $ 73,851 $ 390,239 $ — $ 464,090 $ 281,091 $ 210,983 $ — $ 492,074 The Company classifies its highly liquid money market funds within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company classifies its commercial paper, corporate and municipal debt securities, U.S. government and agency securities and certificates of deposit within Level 2 because they are valued using inputs other than quoted prices that are directly or indirectly observable in the market, including readily available pricing sources for the identical underlying security which may not be actively traded. The Company’s primary objective when investing excess cash is preservation of capital, hence the Company’s marketable securities consist primarily of U.S. government and agency securities, high credit quality corporate debt securities and commercial paper. The Company has classified and accounted for its marketable securities as available-for-sale securities as it may sell these securities at any time for use in the Company’s current operations or for other purposes, even prior to maturity. As of January 31, 2023 and 2022, for fixed income securities that were in unrealized loss positions, the Company has determined that (i) it does not have the intent to sell any of these investments and (ii) it is not more likely than not that it will be required to sell any of these investments before recovery of the entire amortized cost basis. In addition, as of January 31, 2023 and 2022, the Company anticipates that it will recover the entire amortized cost basis of such fixed income securities before maturity. The Company regularly reviews the changes to the rating of its debt securities by rating agencies as well as reasonably monitors the surrounding economic conditions to assess the risk of expected credit losses. As discussed in Note 4, Marketable Securities, as of January 31, 2023 and 2022, there were no securities that were in an unrealized loss position for more than 12 months. The Company has not recorded any impairments in the periods presented. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Jan. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Balance Sheet Components | Balance Sheet Components Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: January 31, (in thousands) 2023 2022 Prepaid hosting and data costs $ 12,168 $ 46,513 Prepaid software costs 6,079 5,765 Capitalized commissions costs, current portion 44,051 40,695 Prepaid insurance 1,734 2,118 Contract assets 4,785 3,161 Other 10,048 10,915 Prepaid expenses and other current assets $ 78,865 $ 109,167 Property and Equipment, Net Property and equipment, net consisted of the following: January 31, (in thousands) 2023 2022 Computer equipment $ 16,283 $ 13,544 Office furniture and other 2,540 1,256 Leasehold improvements 5,535 3,930 Less accumulated depreciation and amortization (16,875) (12,433) Total fixed assets, net 7,483 6,297 Capitalized internal-use software 35,962 23,065 Less accumulated amortization (20,560) (14,657) Total capitalized internal-use software $ 15,402 $ 8,408 Property and equipment, net $ 22,885 $ 14,705 Depreciation and amortization expense consisted of the following: Year Ended January 31, (in thousands) 2023 2022 2021 Depreciation and amortization expense $ 6,148 $ 4,218 $ 2,538 Amortization expense for capitalized internal-use software $ 5,903 $ 3,428 $ 2,526 The Company capitalized internal-use software, including stock-based compensation of $12.9 million, $7.0 million and $3.8 million, for the fiscal years ended January 31, 2023, 2022 and 2021, respectively. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: January 31, (in thousands) 2023 2022 Bonuses $ 25,057 $ 22,622 Employee liabilities (1) 16,374 21,668 Commissions 27,866 16,496 Accrued litigation settlement (2) — 12,000 Accrued sales and use tax liability 7,336 6,935 Accrued income taxes 3,139 2,559 Purchased media costs (3) 2,965 3,227 Professional services 784 1,062 Other 14,003 13,651 $ 97,524 $ 100,220 (1) Includes $1.4 million and $2.3 million of accrued ESPP employee contributions at January 31, 2023 and 2022. Refer to Note 12, Stock-Based Compensation , for further discussion of the Company's ESPP. (2) In February 2022, the Company and Opal Labs Inc. (“Opal”) agreed to settle all outstanding claims with respect to Opal's complaints alleging breach of contract and violation of Oregon’s Uniform Trade Secrets Act, among other claims. The payment was made in March 2022. (3) Purchased media costs consist of amounts owed to the Company’s vendors for the purchase of advertising space on behalf of its customers. |
Goodwill
Goodwill | 12 Months Ended |
Jan. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The changes in the carrying amount of goodwill for the periods presented were as follows: January 31, (in thousands) 2023 2022 Balance at beginning of period $ 49,911 $ 46,823 Business combination — 3,023 Effect of exchange rates 119 65 Balance at end of period $ 50,030 $ 49,911 In 2021, the Company acquired certain assets from a privately held company in a transaction that qualified as a business combination. Goodwill consists primarily of expected synergies of the acquired workforce and growth opportunities, none of which qualify as separately identifiable intangible assets. This business combination was not material to the consolidated financial statements. On an annual basis, the Company performs a goodwill impairment analysis. As discussed in Note 2, Basis of Presentation and Summary of Significant Accounting Policies , there was no impairment in the periods presented. |
Debt
Debt | 12 Months Ended |
Jan. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Senior Subordinated Secured Convertible Notes In May 2020, the Company issued senior subordinated convertible notes for an aggregate principal amount of $75.0 million. Upon completion of the IPO in June 2021, the convertible notes were automatically converted (pursuant to their terms) into 9,694,004 shares of Class B common stock. The Company recognized interest expense of $3.2 million and $5.5 million for the years ended January 31, 2022 and 2021, respectively, related to the notes. Credit Agreement The Company maintains a credit agreement with Silicon Valley Bank (the “SVB Credit Facility”). Under the most recent amended terms of the SVB Credit Facility, the Company can borrow up to $50.0 million on its revolving credit loan facility at the higher of prime interest rate or federal funds effective rate plus 0.50%, provided that in no event shall the total interest rate be less than 5.50%. The SVB Credit Facility, which expires on January 31, 2026, requires the Company to maintain a monthly adjusted quick ratio of no less than 1.25:1.00. In addition, the SVB Credit Facility also provides for issuance of letters of credit that reduce the available borrowing capacity. As of January 31, 2023, the Company had a sub-limit of $15.0 million letters of credit available, of which $4.6 million was issued. As of January 31, 2022, the Company had a sub-limit of $5.0 million letters of credit of available, of which $0.7 million was issued. On March 23, 2023, the Company provided notice to Silicon Valley Bank of our intent to terminate the SVB Credit Facility. |
Leases
Leases | 12 Months Ended |
Jan. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company adopted ASC 842 as of February 1, 2022. The Company has operating leases for corporate offices under non-cancelable operating leases with various expiration dates. The Company does not have finance leases. The components of lease expense were as follows: (in thousands) Year Ended January 31, 2023 Operating lease cost $ 8,145 Variable lease cost 1,147 Short-term lease cost 763 Total lease cost $ 10,056 The weighted-average remaining lease term and discount rate were as follows: January 31, 2023 Weighted-average remaining lease term (in years) 2.96 Weighted-average discount rate 11.01 % The maturities of lease liabilities under non-cancelable operating leases, net of lease incentives were as follows as of January 31, 2023: (in thousands) Fiscal year ended January 31, 2024 $ 8,553 2025 4,604 2026 3,447 2027 2,239 2028 774 Thereafter — Total minimum lease payments $ 19,617 Less: imputed interest (2,850) Total $ 16,767 Future minimum lease payments under non-cancelable operating leases as of January 31, 2022 under ASC 840 were as follows: (in thousands) Fiscal year ended January 31, 2023 $ 9,676 2024 8,036 2025 3,165 2026 2,034 2027 and thereafter 1,726 Total $ 24,637 Rent expense for operating leases for the year ended January 31, 2022 and 2021, which was accounted for under ASC 840, Leases , was $7.4 million and $7.2 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contractual Obligations and Commitments The Company has non-cancelable minimum guaranteed purchase commitments for data and hosting services as of January 31, 2023 as follows: (in thousands) Fiscal year ended January 31, 2024 $ 86,882 2025 76,431 2026 19,817 2027 23,097 2028 and thereafter 14,706 Total $ 220,933 Legal Matters From time to time, the Company, various subsidiaries, and certain current and former officers may be named as defendants in various lawsuits, claims, investigations and proceedings arising from the normal course of business. The Company also may become involved with contract issues and disputes with customers. With respect to litigation in general, based on the Company’s experience, management believes that the amount of damages claimed in a case are not a meaningful indicator of the potential liability. Claims, suits, investigations and proceedings are inherently uncertain and it is not possible to predict the ultimate outcome of cases. The Company believes that it has valid defenses with respect to the legal matters pending against the Company and intends to vigorously contest each of them. The Company makes a provision for a liability relating to legal matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. In management’s opinion, resolution of all current matters is not expected to have a material adverse impact on the Company’s condensed consolidated results of operations, cash flows or financial position. However, if an unfavorable ruling were to occur in any specific period, there exists the possibility of a material adverse impact on the results of operations for that period. At January 31, 2023, the Company had no provision for liability under existing litigation. On September 7, 2017, a complaint was filed by Opal against the Company in the Circuit Court of the State of Oregon, alleging breach of contract and violation of Oregon’s Uniform Trade Secrets Act, among other claims. On September 5, 2018, the case was moved from state court to federal court on the Company’s motion. On February 25, 2022, the Company and Opal agreed to settle all outstanding claims with respect to Opal’s complaints. On March 1, 2022, the court dismissed all of Opal’s claims with prejudice. The Company and Opal finalized the settlement on March 15, 2022, which was accrued as of January 31, 2022 and paid on March 30, 2022. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jan. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock and Undesignated Preferred Stock In connection with the completion of the Company’s IPO on June 25, 2021, (i) all then outstanding common stock was reclassified to an equal number of shares of the Company's Class B common stock and (ii) all then outstanding preferred stock was converted into an equal number of shares of the Company's Class B common stock, as discussed below. Further, in connection with the IPO, Company filed a new Amended and Restated Certificate of Incorporation that authorizes the issuance of 2,000,000,000 shares of Class A common stock with a par value of $0.00003 per share, 310,000,000 shares of Class B common stock with a par value of $0.00003 per share, and 20,000,000 shares of undesignated preferred stock with a par value of $0.00003 per share. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting and conversion rights. Each share of Class A common stock is entitled to one vote per share. Each share of Class B common stock is entitled to ten votes per share and is convertible into one share of Class A common stock. Subject to preferences that may apply to any shares of preferred stock outstanding at the time, the holders of Class A common stock and Class B common stock will be entitled to share equally, identically and ratably, on a per share basis, with respect to any dividend or distribution of cash or property paid or distributed by the company, unless different treatment of the shares of the affected class is approved by the affirmative vote of the holders of a majority of the outstanding shares of such affected class, voting separately as a class. Convertible Preferred Stock In fiscal year 2021, the Company closed on a private placement and issuance of 10,800,000 shares of its Series G-1 convertible preferred stock (the “Series G-1”) at a price per share of $9.25 and 9,100,000 shares of its Series G-2 convertible preferred stock (the “Series G-2”), at a price per share of $11.00 for total gross proceeds of $200.0 million (collectively, “Series G”), before deducting placement agent fees, offering expenses and issued warrants. Compared to Series G-1, Series G-2 include, among other provisions, certain protective provisions not available to the holders of Series G-1. Upon the completion of the Company’s IPO, all of the then-outstanding shares of convertible preferred stock were automatically converted into an aggregate of 120,902,273 of shares of Class B common stock on a one-to-one basis and the carrying value was reclassified into Class B common stock and additional paid-in capital on the consolidated balance sheet. Common Stock Warrants In fiscal year 2022, the Company issued warrants allowing the holders of both the Series G-1 and Series G-2 preferred stock to purchase up to 2.5 million shares of common stock for $10.00 per share. The warrants expire on October 7, 2025. The Company recognized the fair value of the warrants of $7.6 million as additional-paid-in capital using the Black-Scholes option pricing model and an equivalent discount that reduced the carrying value of the Series G-1 and Series G-2 preferred stock to $95.9 million and $95.9 million, respectively. During 2012, the Company issued fully vested warrants to purchase 231,000 shares of common stock at an exercise price of $0.08 to SVB as part of a loan agreement. In June 2021, 230,259 shares of Class B common stock were issued upon the cashless exercise of these common stock warrants. As of January 31, 2023 and 2022, there was 2.5 million of common stock warrants outstanding, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jan. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Equity Incentive Plans The Sprinklr, Inc. 2011 Equity Incentive Plan (the “2011 Plan”) provided certain equity grants to the Company’s employees, directors, consultants and service providers. The 2011 Plan was terminated as to future awards in June 2021 upon the adoption of the Sprinklr, Inc. 2021 Equity Incentive Plan (the “2021 Plan”), although it continues to govern the terms of any equity grants that remain outstanding under the 2011 Plan. The Company’s board of directors adopted the 2021 Plan in May 2021, which was subsequently approved by its stockholders and became effective on June 22, 2021. Initially, the maximum number of shares of the Company’s Class A common stock that may be issued under the 2021 Plan was 80,401,680 shares, which includes (i) 25,480,000 new shares of Class A common stock and (ii) shares subject to outstanding awards granted under the 2011 Plan that expire or otherwise terminate or that are not issued or are otherwise reacquired by the Company under certain circumstances. The 2021 Plan provides that the number of shares reserved and available for issuance under the 2021 Plan will automatically increase each January 1, beginning on January 1, 2022 and ending on (and including) January 1, 2031, by an amount equal to 5% of the number of our Class A and Class B common stock outstanding on the immediately preceding December 31 or such lesser number of shares as determined by the Company’s board of directors. As of January 31, 2023, there were 51,298,472 shares available for grant under the 2021 Plan. The 2021 Plan provides for the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock awards, RSUs, PSUs, and other forms of awards to employees, directors and consultants, including employees and consultants of the Company's affiliates, as permitted by law. Performance-Based Stock Units In January 2021, the Company granted 3,100,000 PSUs to certain executives that vest over a five-year period if certain performance and market conditions are met. The performance condition was met on June 22, 2021, the effective date of the Company’s registration statement, filed in connection with its IPO. The market conditions of the PSUs will be achieved on the date, following the IPO, on which the volume weighted-average trading price of the Company's Class A common stock has, for 45 consecutive trading days, equaled or exceeded pre-determined threshold prices ranging between $30 and $100. If the first threshold of $30 is not met, then no shares will vest. Each PSU is equal to and paid in one share of Class B common stock. The number of shares actually issued will range from zero to 3,100,000 shares in the aggregate. If the market conditions are not met on or prior to the five year anniversary of the grant date, the associated awards will not vest and be subsequently cancelled. To determine the fair value of the PSUs, the Company utilized a Monte Carlo simulation, a computational algorithm which allowed the Company to model the impact of one or more, often uncertain, variables on the value of complex securities and evaluate many possible outcomes to forecast the stock price of the Company. As part of the valuation, the Company considered various scenarios related to the pricing, timing and probability of an IPO. The Company applied an annual equity volatility of 40.0%, a risk-free rate of 0.42%, fair value of common stock of $9.07 per share and an expected term of five years to arrive at a valuation of $3.5 million on the grant date. The achievement of the performance condition was not deemed probable until the effective date of the Company’s registration statement, and therefore, stock-based compensation related to these PSUs remained unrecognized prior to that date. Upon effectiveness of the Company’s registration statement on June 22, 2021, the Company recognized cumulative stock-based compensation based on the proportion of the requisite service period already completed since the date of grant, which amounted to $0.4 million using the accelerated attribution method. The remaining stock-based compensation is recognized over the subsequent remaining requisite service period. As of January 31, 2023, 1,450,000 of the PSUs remain outstanding as certain awards were cancelled due to grantee departures. Chief Executive Officer Stock Option Agreement In March 2019, the Company granted options to purchase 9,274,528 shares of common stock to its Chief Executive Officer. The grant was split into four tranches, each covering 2,318,632 shares of common stock. Tranche 1 was service-based and vested over three years, with the full amount of the related stock-based compensation recognized by March 2022. Tranches 2, 3 and 4 are performance-based, with tranche 2 vesting upon the date of effectiveness of the Company’s registration statement and tranches 3 and 4 vesting if the Company’s share price equals or exceeds certain values at or after the date of the effectiveness the Company’s registration statement. For the 6,955,896 options that were subject to the performance condition satisfied upon the effectiveness of the Company’s registration statement, stock-based compensation expense remained unrecognized until the effective date of June 22, 2021. On this date, the 2,318,632 options under tranche 2 vested and the Company recognized cumulative stock-based compensation expense of $5.8 million using the accelerated attribution method for the portion of the options for which the service-based vesting condition was fully or partially satisfied. The remaining stock-based compensation expense associated with tranches 3 and 4 was recognized through the subsequent remaining requisite service period, or March 2022. If the market conditions associated with tranches 3 and 4 are not met by May 1, 2023, the associated options will not vest and be subsequently cancelled. To determine the fair value of stock options that include market and performance conditions (tranches 2, 3 and 4), the Company utilized a Monte Carlo simulation, which allowed for the modeling of complex securities and evaluate many possible outcomes to forecast the stock price of the Company post-IPO. As part of the valuation, the Company considered various scenarios related to the pricing, timing and probability of an IPO. The Company applied an annual equity volatility of 44.0%, a risk-free rate of 2.6%, fair value of the common stock of $4.14 and an expected term of ten years to arrive at a valuation of $6.1 million on the grant date. Summary of Stock Option Activity A summary of the Company’s stock option activity for the Plan for year ended January 31, 2023 is as follows: Number of Stock Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Balance as of January 31, 2022 44,355 $ 6.23 7.8 $ 226,504 Exercised (5,392) 4.60 Cancelled/forfeited (5,902) 8.40 Expired (12) 4.24 Balance as of January 31, 2023 33,049 $ 6.11 6.6 $ 135,831 Exercisable as of January 31, 2023 23,808 $ 5.49 6.3 $ 110,167 Vested and expected to vest as of January 31, 2023 31,218 $ 5.91 6.5 $ 133,364 Year Ended January 31, 2023 2022 2021 Intrinsic value of options exercised $ 32,391 $ 83,387 $ 51,952 Estimated grant date fair value of options vested in the period $ 32,085 $ 29,256 $ 14,900 The weighted-average grant date fair value of options granted in the years ended January 31, 2022 and 2021 were $5.58 and $2.96, respectively. There were no options granted during fiscal 2023. Determining Fair Value of Stock Options The fair value of each option grant with service and performance conditions is estimated on the date of grant using the Black-Scholes option valuation model. The following assumptions were used to estimate the fair value of options granted to employees for the years ended January 31, 2022 and 2021: Year Ended January 31, 2022 2021 Expected term (in years) 6.0 6.1 Risk-free interest rate 0.9% - 1.4% 0.3% - 0.8% Expected volatility 50.9% - 52.1% 42.3% - 45.5% Expected dividend rate 0% 0% Fair value of common stock $10.96 - $14.02 $4.93 - $9.07 The assumptions were based on the following for each of the periods presented: Expected term —The expected term represents the period that the Company’s stock-based awards are expected to be outstanding. As all of the Company’s option grants are considered to be “plain vanilla,” the Company determined the expected term using the simplified method. The simplified method calculates the expected term as the average of the time-to-vesting and contractual terms of the stock-based award. Risk-free interest rate —The risk-free interest rate is based on U.S. Treasury zero coupon issues with remaining terms similar to the expected term on the options. Expected volatility —Because the Company had limited trading history by which to determine the volatility of its own common stock price, the expected volatility being used is derived from the historical stock volatilities of a representative industry peer group of comparable publicly listed companies over a period approximately equal to the expected term of the options. Expected dividend rate —The Company has never declared or paid any cash dividends and does not anticipate paying cash dividends in the foreseeable future, and, therefore, used an expected dividend yield of zero in the valuation model. Fair value of common stock – Prior to the IPO, the fair value of common stock underlying the stock options had historically been determined by the Company's board of directors, with input from the Company’s management and its valuations from an independent-third party valuation specialist. The Company’s board of directors previously determined the fair value of the common stock at the time of grant of the options by also considering a number of objective and subjective factors, including valuations of comparable companies, sales of common stock to unrelated third parties, operating and financial performance, the lack of liquidity of the Company’s capital stock, and general and industry-specific economic outlook. Subsequent to the IPO, the Company determines the fair value using the closing price, on the date of grant, of the Company’s Class A common stock, which is publicly traded on the NYSE. Forfeiture rate —The Company estimates forfeitures at the time of grant and revises those estimates in subsequent periods if actual forfeitures differ from those estimates. For non-executive employees, the estimated forfeiture rate assumes that the likelihood that an award will be forfeited decreases through the passage of time. Restricted Stock Units A summary of the Company’s RSU activity was as follows: (in thousands except per share data) Number of Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Balance as of January 31, 2022 1,730 $ 14.67 Granted 9,690 12.12 Released (622) 14.17 Cancelled/forfeited (1,398) 13.74 Balance as of January 31, 2023 9,400 $ 12.23 In January 2021, the Company granted 300,000 RSUs with a performance condition. These RSUs vest over a five-year period, with 20% met after one year and then equal quarterly installments over the succeeding four years if a certain performance condition is met. The performance condition was met upon the effective date of the Company’s registration statement, filed in connection with its IPO, June 22, 2021. Stock-based compensation related to these RSUs remained unrecognized prior to effectiveness of the Company’s registration statement as the performance condition was not yet deemed probable. On June 22, 2021, the Company recognized cumulative stock-based compensation based on the proportion of the requisite service period already completed since the date of grant, which amounted to $0.6 million using the accelerated attribution method. The remaining stock-based compensation is recognized over the subsequent remaining requisite service period. Prior to the IPO, the Company estimated the fair value of its service-based RSUs based on the fair value of the underlying common stock, which it estimated in a similar manner to its pre-IPO options, as discussed above. Subsequent to the IPO, the Company determines the fair value of its service-based RSUs using the closing price, on the date of grant, of its Class A common stock, which is publicly traded on the NYSE. Employee Stock Purchase Plan (“ESPP”) In June 2021, the Company’s ESPP became effective. The ESPP initially reserved up to 5,100,000 shares of the Company’s Class A common stock to certain eligible employees or, as designated by the board of directors. The number of shares reserved for issuance under the ESPP automatically increase each January 1, beginning on January 1, 2022 and ending on (and including) January 1, 2031, by an amount equal to the lesser of (i) 1% of the outstanding number of shares of Class A and Class B common stock on the immediately preceding December 31 and (ii) 15,300,000, or such lesser number of shares as determined by the Company’s board of directors. The ESPP is intended to qualify as an ‘employee stock purchase plan’ under Section 423 of the Internal Revenue Code and also contains the necessary rights to permit participation by eligible employees who are foreign nationals or employed outside of the United States while complying with applicable foreign laws. The Company has 8,479,135 shares reserved for future issuance as of January 31, 2023. Under the ESPP, employees may purchase common stock through payroll deductions at a price equal to 85% of the lower of the fair market value of the Class A common stock on (i) the first trading day of each offering period and (ii) the last trading day of each related offering period. The ESPP provides for consecutive offering periods that will typically have a duration of approximately 12 months in length and is comprised of two purchase periods of approximately six months in length. The offering periods are scheduled to start on the first trading day on or after June 15 and December 15 of each year, subject to a reset provision. The first offering period commenced on June 23, 2021. If the fair market value of the Company’s stock on the offering date is higher than the fair market value of the Company’s stock on the last day of any applicable purchase period, participants will be withdrawn from the ongoing offering period and automatically be enrolled in the subsequent offering period, resulting in modification accounting. This reset provision resulted in incremental charges totaling $2.4 million and $3.4 million for the years ended January 31, 2023 and 2022, respectively. ESPP employee payroll contributions accrued as of January 31, 2023 and 2022 totaled $1.4 million and $2.3 million, respectively, and are included within accrued expenses and other current liabilities in the consolidated balance sheet. Employee payroll contributions ultimately used to purchase shares will be reclassified to stockholders’ equity on the purchase date. The Company recorded stock-based compensation of $8.6 million and $6.1 million during the years ended January 31, 2023 and 2022 in connection with the ESPP. The fair value of the share purchase rights granted under the ESPP during the year ended January 31, 2023 was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: Year Ended January 31, 2023 2022 Expected term (in years) 0.5 - 1.0 0.5 - 1.0 Risk-free interest rate 2.2% - 4.6% 0.1% - 0.3% Expected volatility 66.2% - 81.9% 49.3% - 57.0% Expected dividend rate 0% 0% Fair value of common stock $8.84 - $9.84 $14.27 - $22.37 Deferred Stock Compensation Plan In May 2020, the Company implemented a program that provides eligible employees the opportunity, through regular payroll deductions, to purchase shares of the Company’s common stock worth between 10% to 25% of the employee’s salary as elected by the participant, subject to certain caps set forth under the program. Employees were able to purchase shares of the Company’s common stock at the lower of the fair value of the common stock at the beginning or ending date of the purchase period, which commenced on June 1, 2020 and concluded on June 1, 2021. Receipt of common stock under this program was contingent on continued employment through June 1, 2021. This share-settled obligation was recognized in June 2021, at which point the employees were granted shares under this program. In determining the fair value of the right to purchase under this program, the Company used the Monte-Carlo simulation and applied an annual equity volatility of 48.2%, a risk-free rate of 0.17%, fair value of the common stock of $4.93 and an expected term of one year to arrive at a valuation of $1.9 million for the put right, resulting in a grant date fair value of $5.86. The Company recognized $3.2 million of stock-based compensation expense during the year ended January 31, 2022 related to shares issuable pursuant to this program. On June 7, 2021, the Company issued 1,769,945 shares in connection with this program based on the fair value of the common stock at the beginning of the purchase period. Secondary Stock Sale In October 2020, in connection with the sale of the Series G convertible preferred stock, the purchasers of the Series G convertible preferred stock facilitated a secondary stock sale to purchase 9,707,427 shares of common stock from certain eligible employees for $9.25 per share for an aggregate purchase price of $89.8 million. The Company recognized stock-based compensation of $16.3 million in connection with the sale, which represented the difference between the purchase price and the estimated fair value of the common stock on the date of the sale. Tender Offer Transaction In November 2020, the Company, the purchasers of the Series G convertible preferred stock and other existing investors commenced a tender offer to acquire 5,974,776 shares of convertible preferred stock and 3,303,891 shares of common stock from employees and from certain existing and former employees and other existing investors. The shares were repurchased from the stockholders at a purchase price of $9.25 per share. As a result of this transaction, the Company recognized $0.6 million as deemed dividends as a reduction to stockholders’ deficit in relation to the excess of the selling price of convertible preferred stock paid to the existing investors over the original issuance price paid by investors of the shares tendered, and $5.2 million of share-based compensation expense for the difference between the price paid for shares held by our employees and former employee stockholders and the estimated fair market value on the date of the transaction. Stock-Based Compensation Expense Stock-based compensation expense included in operating results was allocated as follows: Year Ended January 31, (in thousands) 2023 2022 2021 Cost of subscription $ 1,528 $ 1,794 $ 2,012 Cost of professional 2,249 2,448 1,658 Research and development 10,678 6,417 4,804 Sales and marketing 26,651 19,929 14,976 General and administrative (1) 14,411 19,543 21,619 Stock-based compensation, net of amounts capitalized 55,517 50,131 45,069 Capitalized stock-based compensation 2,540 696 — Total stock-based compensation $ 58,057 $ 50,827 $ 45,069 Year Ended January 31, (in thousands) 2023 2022 2021 Equity classified awards (2) $ 57,057 $ 49,827 $ 44,159 Other awards (3) 1,000 1,000 910 Total stock-based compensation $ 58,057 $ 50,827 $ 45,069 Year Ended January 31, (in thousands) 2023 2022 2021 Stock options (4) $ 23,454 $ 36,385 $ 14,896 Performance-based stock units (5) (55) 897 19 Restricted stock units (4) 24,963 3,196 555 Employee stock purchase plan 8,695 6,142 — Deferred stock compensation plan — 3,206 7,171 Secondary stock sale — — 16,331 Tender offer transaction — — 5,187 Total stock-based compensation $ 57,057 $ 49,827 $ 44,159 (1) For the fiscal years ended January 31, 2023, 2022 and 2021 the net impact of stock-based compensation related to modifications was immaterial. (2) Expense associated with equity-classified awards includes $8.6 million and $6.1 million of ESPP expense recognized during the years ended January 31, 2023 and 2022, respectively. For the year ended January 31, 2021, it includes $16.3 million recognized in connection with the secondary stock sale and $5.2 million recognized in connection with the tender offer transaction. (3) Non-employee grant recorded over five years, representing the same period and in the same manner as if the grantor had paid cash for the services instead of paying with or using the share-based payment award. (4) Stock-based compensation for the year ended January 31, 2022 includes the acceleration of the expense recognized upon the effectiveness of the Company’s registration statement for the Chief Executive Officer’s performance-based stock options. Similarly, the acceleration of the expense for performance-based RSUs upon the effectiveness of the Company’s registration statement is captured within the stock-based compensation for RSUs for the year ended January 31, 2022. (5) The stock-based compensation for performance-based stock units during the year ended January 31, 2023 includes the impact of stock-based compensation modifications. As of January 31, 2023, total unrecognized compensation cost related to unvested awards not yet recognized under all equity compensation plans, was as follows: January 31, 2023 (in thousands) Unrecognized Expense Weighted Average Expense Recognition Period (in years) Stock options $ 28,296 2.1 Performance share units $ 854 2.1 Restricted stock units $ 64,674 3.2 ESPP $ 3,764 1.0 |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Jan. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share Prior to the Company's IPO in June 2021, the Company computed net loss per share using the two-class method required for participating securities. The two-class method required income available to ordinary shareholders for the period to be allocated between ordinary shares and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. The Company considered its convertible preferred shares to be participating securities as the holders of the convertible preferred shares would be entitled to dividends that would be distributed to the holders of ordinary shares, on a pro-rata basis assuming conversion of all convertible preferred shares into ordinary shares. These participating securities did not contractually require the holders of such shares to participate in the Company’s losses. As such, net loss was not allocated to the Company’s participating securities. Basic net loss per share is computed by dividing net loss attributable to common stockholders (the numerator) by the weighted-average number of shares of common stock outstanding (the denominator) during the period. In periods of losses, diluted loss per share is computed on the same basis as basic loss per share as the inclusion of any other potential shares outstanding would be anti-dilutive. Following the Company’s IPO in June 2021, the Company has two classes of common stock: Class A common stock and Class B common stock. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting, conversion and transfer rights. All shares of the Company’s common stock outstanding immediately prior to the Company’s IPO, including all shares held by executive officers, directors and their respective affiliates, and all shares issuable on the conversion of outstanding convertible preferred stock, were converted into shares of the Company’s Class B common stock immediately prior to the completion of the offering. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis to each class of common stock and the resulting basic and diluted net loss per share attributable to common stockholders are, therefore, the same for both Class A and Class B common stock on both an individual and combined basis. The following table sets forth the computation of basic and diluted net loss per share: Year Ended January 31, (in thousands, except per share amounts) 2023 2022 2021 Numerator: Net loss $ (55,742) $ (111,470) $ (37,970) Deemed dividend in relation to tender offer — — (600) Net loss attributable to Sprinklr common stockholders $ (55,742) $ (111,470) $ (38,570) Denominator: Weighted-average shares outstanding used in computing net loss per share attributable to Sprinklr common stockholders, basic and diluted 259,530 195,020 90,378 Net loss per common share attributable to Sprinklr common stockholders, basic and diluted $ (0.21) $ (0.57) $ (0.42) Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows: Year Ended January 31, (in thousands) 2023 2022 2021 Convertible Preferred Stock — — 120,902 Options to purchase common stock 33,049 44,355 46,455 Convertible note — — 8,653 Performance share units 1,450 3,175 3,100 Restricted stock units 9,400 1,730 450 ESPP 168 242 — Deferred stock compensation plan — — 1,217 Warrants to purchase common stock 2,500 2,500 2,731 Total shares excluded from net loss per share 46,567 52,002 183,508 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The domestic and foreign component of the loss before provision for income taxes was as follows: Year Ended January 31, (in thousands) 2023 2022 2021 Domestic $ (70,072) $ (123,956) $ (39,957) Foreign 22,604 19,402 5,764 Total $ (47,468) $ (104,554) $ (34,193) The provision for income taxes consisted of the following: Year Ended January 31, (in thousands) 2023 2022 2021 Current tax provision Federal $ — $ — $ — State 69 67 102 Foreign 8,039 6,987 3,785 $ 8,108 $ 7,054 $ 3,887 Deferred tax expense (benefit): Federal $ 92 $ 88 $ 85 State 142 92 99 Foreign (68) (318) (294) 166 (138) (110) Total provision for income taxes $ 8,274 $ 6,916 $ 3,777 A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective tax rate was as follows: Year Ended January 31, 2023 2022 2021 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % Effect of: State taxes, net of U.S. federal benefit 2.2 2.8 0.2 Foreign taxes in excess of the U.S. rate differential (5.5) (1.8) (1.1) Non-deductible expenses (14.0) (8.7) (23.0) Changes in valuation allowance (15.9) (23.9) (16.1) Excess tax benefits related to shared based compensation 4.4 4.8 10.9 Global Intangible Low Taxed Income (GILTI) inclusion (12.7) — — Other 3.1 (0.8) (3.0) (17.4) % (6.6) % (11.1) % Deferred Tax Assets and Liabilities The components of deferred tax assets and liabilities were as follows: January 31, (in thousands) 2023 2022 Deferred tax assets: Net operating loss carryforward $ 120,438 $ 105,753 Accrued expenses 1,252 2,003 Accrued commissions 976 718 Depreciation and amortization 749 613 Allowance for doubtful accounts 775 656 Deferred revenue 1,308 4,821 Stock-based compensation 11,340 7,068 Lease right-of-use 2,190 — Other 6 686 Total deferred tax assets $ 139,034 $ 122,318 Less valuation allowance (105,500) (98,093) Deferred tax assets, net of valuation allowance $ 33,534 $ 24,225 Deferred tax liabilities Depreciation and amortization (3,239) (3,566) Capitalized commission costs (27,873) (20,182) Lease liabilities (2,376) — Other (101) (287) Total deferred tax liabilities $ (33,589) $ (24,035) Net deferred tax assets (liabilities) $ (55) $ 190 At January 31, 2023, for U.S. federal income tax purposes, the Company had net operating loss carryforwards of approximately $452.2 million, which expire in fiscal 2032 through fiscal 2038. The U.S. federal net operating losses generated after fiscal 2019 do not expire and may be carried forward indefinitely. For U.S. states income tax purposes, the Company had net operating loss carryforwards of approximately $317.8 million, which expire in various years beginning from fiscal 2022 through fiscal 2042. For foreign income tax purposes, the Company had net operating loss carryforwards of approximately $13.7 million which expire beginning fiscal 2024. Utilization of the Company’s net operating loss carryforwards may be subject to an annual limitation as a result of an ownership change, as defined under the provisions of Section 382 of the Code and similar state provisions. Such an annual limitation could result in the expiration of the net operating loss carryforwards before utilization. Utilization of the Company’s foreign NOL carryforwards in the future will be dependent upon the local tax law and regulation. The Company had a valuation allowance of $105.5 million and $98.1 million as of January 31, 2023 and 2022, respectively. The Company regularly evaluates the need for a valuation allowance against its deferred tax assets by considering both positive and negative evidence related to whether it is more likely than not that our deferred tax assets will be realized. Based on the weight of the available evidence, which includes the Company’s historical operating losses, and lack of taxable income, the Company provided a full valuation allowance against the deferred tax assets for the U.S. and certain international entities. The Company has not recorded deferred income taxes and withholding taxes with respect to the undistributed earnings of its foreign subsidiaries as such earnings are determined to be reinvested indefinitely. If those earnings were repatriated, in the form of dividends or otherwise, the Company could be subject to U.S. income taxes and withholding taxes to the various foreign countries. As of January 31, 2023, the Company had $79.5 million of earnings indefinitely reinvested outside of the U.S. Due to complexities in the laws of the foreign jurisdictions and the assumptions that would have to be made, it is not practicable to estimate the amount of tax associated with such unremitted earnings. Unrecognized Tax Benefits and Other Considerations The Company records liabilities related to its uncertain tax positions. The Company recognizes the tax benefit of an uncertain tax position only if it is more likely than not that the position is sustainable upon examination by the taxing authority, based on the technical merits. The tax benefit recognized is measured as the largest amount of benefit which is greater than 50 percent likely to be realized upon settlement with the taxing authority. The Company records interest and penalties related to unrecognized tax benefits within the Company’s provision for income taxes. A reconciliation of the beginning and ending balance of total gross unrecognized tax benefits for the year ended January 31, 2023: Year Ended January 31, (in thousands) 2023 Balance at beginning of period $ 1,539 Tax positions taken during a prior year: Gross increases — Gross decreases (288) Tax positions taken during the current year: Gross increases 477 Balance at end of period $ 1,728 The Company recognizes interest and penalties related to income tax matters as a component of income tax expense. In addition, the Company accrued immaterial amounts related to penalties and interest during the years ended January 31, 2023 and 2022. It is reasonably possible that over the next 12-month period the Company may experience an increase or decrease to certain unrecognized tax benefits due to tax examination changes, settlement activities, expirations of statute of limitations, or other similar activities. Nonetheless, the Company anticipates insignificant changes to unrecognized tax benefits over the next 12 months. The Company is subject to taxation in multiple jurisdictions in the United States and outside of the United States. The Company currently considers U.S. federal, Brazil, France, India, Japan, and the United Kingdom to be major tax jurisdictions. Tax years 2017 and forward remain open for examination for U.S. federal tax purposes and tax years 2018 and forward remain open for examination for the Company's more significant state jurisdictions. To the extent utilized in future years’ tax returns, net operating loss carryforwards from tax years 2012 and onward will remain subject to examination until the respective tax year is closed. Generally, tax authorities outside of the United States may examine the Company’s tax returns five years from the date an income tax return is filed. |
Geographic Information
Geographic Information | 12 Months Ended |
Jan. 31, 2023 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information The Company operates in one segment. The Company’s products and services are sold throughout the world. The Company’s chief operating decision maker (the “CODM”) is the chief executive officer. The CODM makes operating performance assessment and resource allocation decisions on a global basis. The CODM does not receive discrete financial information about asset allocation, expense allocation or profitability by product or geography. The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use our cloud based software platform: Year Ended January 31, (in thousands) 2023 2022 2021 Americas $ 397,616 $ 312,927 $ 253,689 EMEA 176,777 138,553 100,057 Other 43,797 40,914 33,184 $ 618,190 $ 492,394 $ 386,930 The United States was the only country that represented more than 10% of the Company's revenues, comprising of $373.1 million, $293.1 million and $240.1 million in the years ended January 31, 2023, 2022 and 2021, respectively. Long-lived assets by geographical region are based on the location of the legal entity that owns the assets. As of January 31, 2023 and 2022, long lived assets by geographic region were as follows: January 31, (in thousands) 2023 2022 Americas (1) $ 18,199 $ 10,472 EMEA 1,051 1,551 Other 3,635 2,682 $ 22,885 $ 14,705 (1) Includes $18.0 million and $10.2 million of fixed assets held in the United States at January 31, 2023 and 2022, respectively. |
Related Parties
Related Parties | 12 Months Ended |
Jan. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Parties | Related Parties The Company engaged Lyearn Inc. (“Lyearn”), a learning management system company that is wholly owned by Ragy Thomas, our Founder, Chairman and Chief Executive Officer, in connection with the provision of digital training services to the Company’s employees and certain Sprinklr customers. The Company paid Lyearn approximately $0.1 million in connection with the digital training services provided to a customer for the year ended January 31, 2023 and approximately $0.1 million in connection with the digital training services provided to employees for the year ended January 31, 2022. As of January 31, 2023, the Company had $0.1 million due to Lyearn in connection with the digital training services provided to employees. With regard to the development of certain human productivity features for the Company, the Company is leveraging its collaborative relationship with Lyearn to serve Company imperatives in the areas of employee assessment, goal-setting, and activity measurement against goals, and other employee feedback and assessment, to assist and accelerate the Company’s efforts to identify the optimal tools and processes that will be deployed long-term to meet these business imperatives. These collaborative services are provided to the Company, by Lyearn, at no cost. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jan. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company provides benefit plans for its employees in the United States. The Sprinklr 401(k) Plan is available to all eligible employees on the Company’s U.S. payroll who are automatically enrolled for pre-tax deferrals on the first pay date after satisfying the eligibility requirements. The Sprinklr 401(k) Plan is qualified under Section 401(k) of the Internal Revenue Code and provides employees with tax-deferred and after-tax salary deductions, up to a maximum allowable limit, and alternative investment options. Employees may contribute up to the lesser of 100% of their eligible compensation or the statutory prescribed annual limit. For the 2021 plan year, the Company made a matching contribution equal to 50% of a participant’s deferral up to 4% of such person’s compensation (a maximum of 2% of compensation), subject to a $500 maximum. Beginning in 2022, the Company has made a matching contribution equal to 30% of a participant’s eligible compensation up to the first 4% of such person’s elected deferral. The Company’s defined contribution plan in the United Kingdom is available to all employees on the Company’s U.K. payroll in accordance with the U.K. government regulations. Under this plan, employees can defer a percentage of their paycheck to a tax-deferred account. The Company contributes as per the local statutory regulations. The amounts the Company contributed were immaterial during fiscal years ended January 31, 2023, 2022 and 2021. |
Subsequent events
Subsequent events | 12 Months Ended |
Jan. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent eventsIn February 2023, the Company implemented an approved plan for restructuring its global workforce by approximately 4% to reduce operating costs and better align its workforce with the needs of its business. The majority of the associated costs, including severance and benefits and equity compensation, are expected to be incurred in the first half of fiscal 2024. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and include the consolidated accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated. |
Use of Estimates | The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions made in the accompanying consolidated financial statements include, but are not limited to, revenue recognition and stock-based compensation, including historical common stock valuations. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and on assumptions that it believes are reasonable and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates and assumptions. |
Segments | The Company operates in one operating segment because the Company’s offerings operate on its single Customer Experience Management Platform, and its products are deployed in a similar way. The Company’s chief operating decision maker evaluates the Company’s financial information and assesses the performance of the Company on a consolidated basis. Because the Company operates in one operating segment, all required financial segment information can be found in the consolidated financial statements. |
Foreign Currency | The functional currency of the Company’s foreign subsidiaries is generally their respective local currency. Assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars at the exchange rates in effect at the balance sheet dates, with the resulting translation adjustments recorded to a separate component of accumulated other comprehensive loss. Income and expense accounts are translated at average exchange rates during the year. Foreign currency remeasurement and transaction gains and losses are recorded in other income (expense), net, in the consolidated statements of operations. |
Cash Equivalents | The Company considers all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents. |
Marketable Securities | The Company's marketable securities consist of U.S. Treasury securities, corporate and municipal bonds, money market funds, agency securities, commercial paper, certificates of deposit, and time deposits with maturity dates of more than three months from the date of purchase. The Company determines the appropriate classification of marketable securities at the time of purchase and reevaluates such designation at each balance sheet date. The Company classifies and accounts for its marketable securities as available-for-sale securities as the Company may sell these securities at any time for use in the current operation or for other purposes, even prior to maturity. As a result, the Company classifies marketable securities as current assets in the consolidated balance sheets. All marketable securities are recorded at their estimated fair values. Premiums and discounts are amortized or accreted over the life of the related available-for-sale security as an adjustment to yield. Interest income is recognized when earned. Unrealized gains and losses on these marketable securities are reported as a separate component of accumulated other comprehensive loss on the consolidated balance sheets until realized. Realized gains and losses are determined based on the specific identification method and are reported in other expense, net in the consolidated statements of operations. |
Fair Value Measurement | The Company considers the carrying amounts of financial instruments, including cash, accounts receivable, accounts payable and accrued expenses to approximate their fair values because of their relatively short maturities. The Company measures certain financial assets at fair value based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. The Company evaluates these inputs and recognizes transfers between levels, if any, at the balance sheet date. The Company has not elected the fair value measurement option for assets not required to be measured at fair value on a recurring basis. The Company classifies its highly liquid money market funds within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company classifies its commercial paper, corporate and municipal debt securities, U.S. government and agency securities and certificates of deposit within Level 2 because they are valued using inputs other than quoted prices that are directly or indirectly observable in the market, including readily available pricing sources for the identical underlying security which may not be actively traded. The Company’s primary objective when investing excess cash is preservation of capital, hence the Company’s marketable securities consist primarily of U.S. government and agency securities, high credit quality corporate debt securities and commercial paper. The Company has classified and accounted for its marketable securities as available-for-sale securities as it may sell these securities at any time for use in the Company’s current operations or for other purposes, even prior to maturity. As of January 31, 2023 and 2022, for fixed income securities that were in unrealized loss positions, the Company has determined that (i) it does not have the intent to sell any of these investments and (ii) it is not more likely than not that it will be required to sell any of these investments before recovery of the entire amortized cost basis. In addition, as of January 31, 2023 and 2022, the Company anticipates that it will recover the entire amortized cost basis of such fixed income securities before maturity. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts receivable are recorded at invoiced amounts, net of allowance for doubtful accounts, if applicable, and are unsecured and do not bear interest. The allowance for doubtful accounts is based on the probability of future collection under the current expect credited loss (“CECL”) impairment model under ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Assets, which was adopted by the Company on January 31, 2023, with an effective date of February 1, 2022, as discussed below within Recently Adopted Accounting Pronouncements . Under the CECL impairment model, the Company determines its allowance by applying a loss-rate method based on an aging schedule using the Company’s historical loss rate. The Company also considers reasonable and supportable current information in determining its estimated loss rates, such as external forecasts, macroeconomic trends or other factors including customers’ credit risk and historical loss experience. The adequacy of the allowance is evaluated on a regular basis. Account balances are written off after all means of collection are exhausted and the balance is deemed uncollectible. Subsequent recoveries are credited to the allowance. Changes in the allowance are recorded in sales and marketing expense in the period incurred. Prior to February 1, 2022, accounts receivable was presented net of allowance for doubtful accounts based on the credit risk of specific clients, past collection history and management’s evaluation of accounts receivable. |
Property and Equipment | Property and equipment, including leasehold improvements, are stated at cost, less accumulated depreciation and amortization. Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the asset, which is generally two The Company capitalizes qualifying internally-developed software costs incurred in connection with the Company’s internal-use software platform. These capitalized costs are related to the cloud-based software platform that the Company hosts, which is accessed by its clients on a subscription basis. Costs are capitalized during the application development stage, provided that management with the relevant authority authorizes and commits to the funding of the software project, it is probable the project will be completed, the software will be used to perform the functions intended and certain functional and quality standards have been met. Capitalized internal-use software costs are amortized on a straight-line basis over their estimated useful life, which is generally three years. Costs incurred for specific upgrades and enhancements when it is probable the expenditures will result in additional functionality are capitalized and amortized over the estimated useful life of the enhancements. Costs related to preliminary project activities and post-implementation operations activities, including training and maintenance, are expensed as incurred. |
Business Combinations | When the Company acquires businesses, it allocates the purchase price to tangible assets, liabilities and identifiable intangible assets acquired with any residual purchase price 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, particularly with respect to intangible assets at the acquisition date, deferred revenue and contingent consideration, where applicable. These estimates can include, but are not limited to, historical experience and information obtained from the management of the acquired companies, the cash flows that an asset is expected to generate in the future, the weighted-average cost of capital and the cost savings expected to be derived from acquiring an asset. These estimates are inherently uncertain and unpredictable and unanticipated events and circumstances may occur which could affect the accuracy or validity of such estimates. |
Goodwill | Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in connection with business combinations accounted for using the purchase method of accounting. Goodwill is not amortized, but rather is tested for impairment annually and more frequently upon the occurrence of certain events. The Company performs its annual impairment test of goodwill in the fourth quarter of each fiscal year, using November 1 carrying values, or whenever events or circumstances indicate that goodwill may not be recoverable. Triggering events that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate or a significant decrease in expected cash flows. In performing its impairment test, the Company first assesses qualitative factors to determine whether it is more-likely-than-not that the fair value of the reporting unit is less than its carrying value. In performing the qualitative assessment, the Company reviews factors such as financial performance, macroeconomic conditions, industry and market considerations. If the Company elects this option and believes, as a result of the qualitative assessment, that it is more-likely-than-not that the carrying value of the reporting unit exceeds the fair value, the quantitative impairment test is required; otherwise, no further testing is required. Alternatively, the Company may elect to bypass the qualitative assessment and perform the quantitative impairment test instead, or if the Company reasonably determines that it is more-likely-than-not that the fair value is less than the carrying value, the Company performs its annual, or interim, goodwill impairment test by comparing the fair value of the reporting unit with the carrying amount. The Company will recognize an impairment for the amount by which the carrying amount exceeds the reporting unit's fair value. |
Impairment of Long-Lived Assets | The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its long-lived assets, including property, equipment, capitalized internal-use software and other assets, including identifiable definite-lived intangible assets, may not be recoverable. When such events or changes in circumstances occur, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through their undiscounted expected future cash flow. If the future undiscounted cash flow is less than the carrying amount of these assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. If the useful life is shorter than originally estimated, the Company amortizes the remaining carrying value over the new shorter life. |
Leases | On February 1, 2022, the Company adopted the lease accounting requirements of Accounting Standard Update (“ASU”) 2016-02, Leases (“Topic 842”) . Under Topic 842, the Company determines if an arrangement is a lease at inception, and leases are classified at commencement as either operating or finance leases. As of adoption and January 31, 2023, the Company did not have any finance leases. Right-of-use (“ROU”) assets and lease liabilities are recognized at commencement based on the present value of the minimum lease payments over the lease term. The Company utilizes certain practical expedients and policy elections available under Topic 842, including (i) leases with an initial term of 12 months or less are not recognized on the balance sheet (ii) lease components are not separated from non-lease components for all asset classes and (iii) non-lease components that are not fixed are expensed as incurred as variable lease costs. The Company uses the incremental borrowing rate based on information available at the commencement date in determining the present value of future lease payments. The rate is an estimate of the collateralized borrowing rate the Company would incur on future lease payments over a similar term. The Company leases facilities under non-cancelable operating lease agreements. Certain of the operating lease agreements contain rent concessions and rent escalations that are included in the present value calculation of minimum lease payments. The lease term begins on the date the Company has the right to use the leased property. Lease terms may include options to extend or terminate the lease and these options are included in the ROU asset and lease liability when it is reasonably certain that the option will be exercised. The Company's lease agreements do not contain residual value guarantees or covenants. Prior to the February 1, 2022 adoption of Topic 842, ROU asset and lease liabilities were not recognized for operating leases. Rent concessions and rent escalation provisions were considered in determining the straight-line rent expense to be recovered over the lease term. |
Concentration of Risk and Significant Customers | The Company has no significant off-balance sheet risks related to foreign currency exchange contracts, option contracts or other foreign currency hedging arrangements. The Company’s financial instruments that are potentially subject to credit risk consist primarily of cash and cash equivalents and accounts receivable. Although the Company deposits its cash with multiple financial institutions, its deposits generally exceed federally insured limits. To manage credit risk related to accounts receivable, the Company maintains an allowance for credit losses. The allowance is determined by applying a loss-rate method based on an aging schedule using the Company's historical loss rate. The Company also considers reasonable and supportable current and forecasted information in determining its estimated loss rates, such as external forecasts, macroeconomic trends, or other factors including customers’ credit risk and historical loss experience. The Company’s accounts receivable are derived from invoiced customers located primarily in North America and Europe. No single customer accounted for more than 10% of total revenue in the years ended January 31, 2023, 2022 or 2021. In addition, no single customer accounted for more than 10% of total accounts receivable as of January 31, 2023 or 2022. In addition, the Company relies upon third-party hosted infrastructure partners globally, including Amazon Web Services, to serve customers and operate certain aspects of our services, such as environments for development testing, training, sales demonstrations, and production usage. Given this, any disruption of or interference at the Company’s hosted infrastructure partners would impact the Company’s operations and its business could be adversely impacted. |
Revenue Recognition and Cost of Revenue | Revenue Recognition The Company accounts for revenue in accordance with ASU No. 2014-09, Revenue from Contracts with Customers (ASC 606) . For further discussion of the Company’s accounting policies related to revenue see Note 3, Revenue Recognition. Costs of Revenue Costs of subscription revenue and professional services revenue is expensed as incurred. Costs of subscription revenue consists primarily of expenses related to hosting the Company’s software platform, including data center operations costs and personnel and related expenses directly associated with delivering the Company’s cloud infrastructure, the costs associated with purchasing third-party data that is utilized in providing elements of the platform and costs to provide platform support to the Company’s customers, including personnel and related expenses. These costs include salaries, benefits, bonuses, stock-based compensation, as well as allocated overhead. Costs of professional services consists primarily of personnel and related expenses directly associated with the Company’s professional services organization. These costs include salaries, benefits, bonuses, stock-based compensation, as well as allocated overhead, together with the costs of subcontracted third-party professional services vendors. Overhead associated with facilities and depreciation is allocated to cost of revenue based on relative headcount in those departments. The Company derives its revenues primarily from two sources: • Subscription revenue consists of subscription fees from customers accessing the Company’s cloud-based software platform and applications, as well as related customer support services; and • Professional services revenue consists of fees associated with providing services that educate and assist the Company’s customers with the configuration and optimization of the Company’s software platform and applications. Professional services revenue also includes managed services fees where the Company’s consultants work as part of its customers’ teams to help leverage the subscription service to execute on their customer experience management goals. The Company recognizes revenue upon transfer of control of promised products and services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. 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 • Recognition of revenue when, or as, the performance obligation is satisfied Subscription revenue is recognized ratably over the contract term beginning on the commencement date of each contract, which is the date the Company’s service is made available to customers. Subscription revenue includes customer support services, which together with the accessing of the Company’s cloud-based software platform, generally constitute a single performance obligation comprised of a series of distinct services that are substantially the same and have the same pattern of revenue recognition. Amounts that have been invoiced because they have the unconditional right to consideration are recorded in accounts receivable and in deferred revenue or revenue, depending on whether the revenue recognition criteria have been met, with the majority being invoiced annually in advance of performance obligations. When determining the transaction price of a contract, an adjustment is made if payment from the customer occurs either significantly before or significantly after performance, resulting in a significant financing component. Applying the practical expedient in the FASB Accounting Standards Codification Topic 606, Revenue from Contracts with Customers , the Company does not assess whether a significant financing component exists if the period between when the Company performs its obligations under the contract and when the customer pays is one year or less. One of the Company’s contracts contained a significant financing component as of January 31, 2023 as a result of an advance payment from a large customer for a multi-year contract in the prior fiscal year. None of the Company’s other contracts contained a significant financing component at January 31, 2023. Professional services revenues are recognized as the services are rendered for time and materials contracts or on a proportional performance basis for fixed price contracts. The majority of the Company’s professional services arrangements are fixed price contracts. The Company enters into arrangements where it provides managed services associated with assisting its customers in publishing advertisements on social media channels. As part of those arrangements the Company is occasionally required to purchase advertising space from social media channels on behalf of its customers and invoice those costs back to its customer. Revenue from such arrangements is recognized on a net basis as the Company has determined that it is acting as an agent in these transactions. Some of the Company’s product offerings include service-level agreements warranting defined levels of uptime reliability and performance and permitting those customers to receive credits for future services in the event that it fails to meet those levels. To date, the Company has not accrued for any significant liabilities in the accompanying condensed consolidated financial statements as a result of these service-level agreements. For contracts that are modified for changes in contract specification and requirements, the Company analyzes the modification to determine the accounting treatment of the contract modification as a separate contract, prospectively or through a cumulative catch-up adjustment. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Contracts with Multiple Performance Obligations The Company executes arrangements that include multiple performance obligations (consisting of subscription and professional services). Additionally, the Company is often party to multiple concurrent contracts or contracts pursuant to which a client may purchase a combination of services. These situations require judgment to determine whether the multiple promises are separate performance obligations. Once the Company has determined the performance obligations, the Company determines the transaction price. The Company allocates the transaction price to each performance obligation on a relative standalone selling price (“SSP”) basis. The SSP is the price at which the Company would sell promised subscription or professional services separately to a customer. The determination of SSP for each distinct performance obligation requires judgement. The Company determines SSP based on its overall pricing objective, taking into consideration contractually stated prices, size of the arrangement renewal contracts, list prices and internal discounting tables. Costs to Obtain Customer Contracts Costs to obtain customer contracts, including commissions earned, that are considered incremental and recoverable are capitalized and amortized on a straight-line basis over the anticipated period of benefit. The Company determined the period of benefit by taking into consideration the length of its customer contracts, customer relationship period, technology lifecycle, and other factors. The Company has historically estimated such period of benefit to be three years. During the first quarter of fiscal 2023, the Company updated the period of benefit, noting that recent customer relationship periods extended to an average period of five years. Accordingly, the Company noted a change in the estimate of the amortization period of these costs and will prospectively amortize over a period of benefit of five years. The change in amortization period resulted in an immaterial impact to sales and marketing expense for the year ended January 31, 2023. Sales commissions paid for renewals are not commensurate with commissions paid on the initial contract given the substantive difference in commission rates in proportion to their respective contract values. Amortization expense is recorded in sales and marketing expense within the Company’s consolidated statement of operations. |
Research and Development | Research and development expenses consist primarily of costs relating to the maintenance, continued development and enhancement of the Company’s cloud-based software platform and include personnel-related expenses and stock-based compensation for our research and development organization, professional fees, travel expenses and allocated overhead expenses, including facilities costs. Research and development expenses are expensed as incurred, except for internal-use software development costs that qualify for capitalization. |
Advertising Costs | Advertising costs include costs incurred to promote the Company’s subscription and professional services. |
Warranties | The Company’s cloud-based software platform is generally warranted to perform materially in accordance with the Company’s online documentation and the terms of the agreement with a customer, under normal use and circumstances. Additionally, our contracts generally include provisions for indemnifying customers against liabilities if use of our software platform infringe a third party’s intellectual property rights, and we may also incur liabilities if we breach the security, privacy and/or confidentiality obligations in our contracts. To date, we have not incurred any material costs, and we have not accrued any liabilities in the accompanying consolidated financial statements as of January 31, 2023 or 2022 as a result of these obligations. Certain of the Company’s arrangements may include certain service level agreements with its customers committing to certain levels of platform uptime and performance and permitting those customers to receive credits in the event that the Company fails to meet those levels. To date, the Company has not incurred or experienced any significant failures to meet defined levels of availability and performance of those agreements and, as a result, the Company has not accrued any liabilities related to such obligations in the accompanying consolidated financial statements as of January 31, 2023 or 2022. |
Stock-Based Compensation | The Company accounts for stock-based compensation as an expense in the statements of operations based on the awards’ grant date fair values. Options The Company estimates the fair value of service-based options granted using the Black-Scholes option pricing model. Stock options that included performance and market conditions are valued using the Monte-Carlo simulation model. The Black-Scholes option pricing model requires inputs based on certain assumptions, including (i) the fair value per share of the Company’s common stock (ii) the expected stock price volatility, (iii) the calculation of expected term of the award, (iv) the risk-free interest rate and (v) expected dividends. A Monte-Carlo simulation is an analytical method used to estimate value by performing a large number of simulations or trial runs and determining a value based on the possible outcomes from these trial runs. Prior to becoming a public company, the Company’s board of directors determined the fair value of its common stock using a number of objective and subjective factors, as discussed in Note 12, Stock-based Compensation , with input from management and valuations performed by an independent third-party valuation specialist. Subsequent to the IPO, the Company determines the fair value using the closing price, on the date of grant, of its Class A common stock, which is publicly traded on the New York Stock Exchange (“NYSE”). The fair value of stock-based payments is recognized as compensation expense, net of expected forfeitures, over the requisite service period, which is generally the vesting period. The fair value of stock-based payments for options that include performance and market conditions is recognized as compensation expense over the requisite service period as achievement of the performance objective becomes probable. Restricted Stock Units Prior to the IPO, the Company estimated fair value of its restricted stock units (“RSUs”) based on the fair value of the underlying common stock, which was estimated similarly to its options as discussed above. Subsequent to the IPO, the Company determines the fair value using the closing price, on the date of grant, of its Class A common stock, which is publicly traded on the NYSE. Stock-based compensation for RSUs is recognized over the requisite service period, which is generally the vesting period, net of expected forfeitures. Performance-Based Stock Units The Company issued certain performance-based stock units (“PSUs”) that vest upon the satisfaction of time-based service, performance-based and market conditions. For the units that vest upon the achievement of certain performance and market conditions, the Company estimated the grant date fair value using a Monte Carlo simulation. The simulation modeled multiple stock price paths in order to estimate the grant date fair value of those with market conditions while the estimated grant date fair value of those with performance conditions was based on the probability of those conditions being met. The performance-based vesting condition was satisfied on June 22, 2021, upon the effectiveness of the Company’s registration statement filed under the Securities Act for the sale of the Company’s common stock in relation to its IPO. Refer to Note 12, Stock-Based Compensation , for further detail on stock-based compensation recognition for the PSUs. Employee Stock Purchase Plan The fair value of the share purchase rights under the Company’s 2021 Employee Stock Purchase Plan (“ESPP”) is measured based on the grant date fair value using the Black-Scholes option pricing model. Refer to Note 12, Stock-Based Compensation , for further detail on assumptions used in determining the grant date fair value and stock-based compensation recognition for the Company’s ESPP grants. |
Income Taxes | The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. Management makes estimates, assumptions and judgements to determine the Company’s provision for or benefit from income taxes, deferred tax assets and liabilities and any valuation allowances recorded against the Company’s deferred tax assets. The Company also assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent that the Company believes that recovery is not more likely than not, the Company will establish a valuation allowance. |
Recently Adopted Accounting Pronouncements | In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases (Topic 842) , and additional changes, modifications, clarifications or interpretations related to this guidance thereafter (“ASU 2016-02”). ASU 2016-02 requires a reporting entity to recognize ROU assets and lease liabilities on the balance sheet for operating leases to increase transparency and comparability. The Company adopted this standard on February 1, 2022 and elected the package of transition practical expedients which allowed the Company to carry forward prior conclusions related to: (i) whether any expired or existing contracts are or contain leases, (ii) the classification for any expired or existing leases and (iii) initial direct costs for existing leases. Additionally, the Company elected the practical expedient of not separating lease components from non-lease components for all asset classes. The Company also made an accounting policy election to not record ROU assets or lease liabilities for leases with an initial term of 12 months or less and will recognize payments for such leases in the Company’s consolidated statements of operations on a straight-line basis over the lease term. The Company recorded lease liabilities and corresponding ROU assets of approximately $14.0 million upon adoption of this standard. In June 2016, the FASB issued ASU 2016-13, with subsequent amendments, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“Topic 326”). The Company adopted Topic 326 on January 31, 2023, with an effective date of February 1, 2022, which amended the impairment model by requiring entities to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. The Company utilized the modified-retrospective approach at adoption, under which prior period comparable financial information was not adjusted. The adoption did not have a material impact on the consolidated financial statements and related disclosures. |
Net Loss Per Share | Prior to the Company's IPO in June 2021, the Company computed net loss per share using the two-class method required for participating securities. The two-class method required income available to ordinary shareholders for the period to be allocated between ordinary shares and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. The Company considered its convertible preferred shares to be participating securities as the holders of the convertible preferred shares would be entitled to dividends that would be distributed to the holders of ordinary shares, on a pro-rata basis assuming conversion of all convertible preferred shares into ordinary shares. These participating securities did not contractually require the holders of such shares to participate in the Company’s losses. As such, net loss was not allocated to the Company’s participating securities. Basic net loss per share is computed by dividing net loss attributable to common stockholders (the numerator) by the weighted-average number of shares of common stock outstanding (the denominator) during the period. In periods of losses, diluted loss per share is computed on the same basis as basic loss per share as the inclusion of any other potential shares outstanding would be anti-dilutive. Following the Company’s IPO in June 2021, the Company has two classes of common stock: Class A common stock and Class B common stock. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting, conversion and transfer rights. All shares of the Company’s common stock outstanding immediately prior to the Company’s IPO, including all shares held by executive officers, directors and their respective affiliates, and all shares issuable on the conversion of outstanding convertible preferred stock, were converted into shares of the Company’s Class B common stock immediately prior to the completion of the offering. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis to each class of common stock and the resulting basic and diluted net loss per share attributable to common stockholders are, therefore, the same for both Class A and Class B common stock on both an individual and combined basis. |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Available-For-Sale Marketable Securities | The following is a summary of available-for-sale marketable securities, excluding those securities classified within cash and cash equivalents on the consolidated balance sheets: January 31, 2023 (in thousands) Amortized Cost Unrealized Gain Unrealized Losses Fair Value Corporate bonds $ 39,922 $ 8 $ (68) $ 39,862 Municipal bonds 12,429 22 — 12,451 U.S. government and agency securities 128,898 6 (367) $ 128,537 Certificates of deposit 59,545 28 (155) $ 59,419 Commercial paper 150,131 41 (202) 149,970 Marketable securities $ 390,925 $ 105 $ (791) $ 390,239 January 31, 2022 (in thousands) Amortized Cost Unrealized Gain Unrealized Losses Fair Value Corporate bonds $ 124,639 $ 1 $ (163) $ 124,477 U.S. government and agency securities 37,725 — (35) 37,690 Commercial paper 48,818 — (2) 48,816 Marketable securities $ 211,182 $ 1 $ (200) $ 210,983 |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value | The following table presents estimated fair value and gross unrealized losses of debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by security category and length of time such securities have been in a continuous unrealized loss position as of January 31, 2023. There are no securities that have been in an unrealized loss position for greater than 12 months. There are no expected credit losses that have been recorded against the Company’s investment securities as of January 31, 2023. Less Than One Year Fair Value Gross Unrealized Losses Corporate bonds $ 39,862 $ (68) U.S. government and agency securities $ 128,537 $ (367) Certificate of deposits $ 59,419 $ (155) Commercial paper $ 149,970 $ (202) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present information about the Company’s financial assets that have been measured at fair value on a recurring basis as of January 31, 2023 and 2022, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value: January 31, 2023 January 31, 2022 (in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial Assets: Cash Equivalents: Money market funds $ 73,851 $ — $ — $ 73,851 $ 281,091 $ — $ — $ 281,091 Marketable Securities: Corporate bonds — 39,862 — 39,862 — 124,477 — 124,477 Municipal bonds — 12,451 — 12,451 — — — — U.S. government and agency securities — 128,537 — 128,537 — 37,690 — 37,690 Certificates of deposit — 59,419 — 59,419 — — — — Commercial paper — 149,970 — 149,970 — 48,816 — 48,816 Total financial assets $ 73,851 $ 390,239 $ — $ 464,090 $ 281,091 $ 210,983 $ — $ 492,074 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expense and Other Current Assets | Prepaid expenses and other current assets consisted of the following: January 31, (in thousands) 2023 2022 Prepaid hosting and data costs $ 12,168 $ 46,513 Prepaid software costs 6,079 5,765 Capitalized commissions costs, current portion 44,051 40,695 Prepaid insurance 1,734 2,118 Contract assets 4,785 3,161 Other 10,048 10,915 Prepaid expenses and other current assets $ 78,865 $ 109,167 |
Schedule of Property, Plant and Equipment, Net | Property and equipment, net consisted of the following: January 31, (in thousands) 2023 2022 Computer equipment $ 16,283 $ 13,544 Office furniture and other 2,540 1,256 Leasehold improvements 5,535 3,930 Less accumulated depreciation and amortization (16,875) (12,433) Total fixed assets, net 7,483 6,297 Capitalized internal-use software 35,962 23,065 Less accumulated amortization (20,560) (14,657) Total capitalized internal-use software $ 15,402 $ 8,408 Property and equipment, net $ 22,885 $ 14,705 Depreciation and amortization expense consisted of the following: Year Ended January 31, (in thousands) 2023 2022 2021 Depreciation and amortization expense $ 6,148 $ 4,218 $ 2,538 Amortization expense for capitalized internal-use software $ 5,903 $ 3,428 $ 2,526 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: January 31, (in thousands) 2023 2022 Bonuses $ 25,057 $ 22,622 Employee liabilities (1) 16,374 21,668 Commissions 27,866 16,496 Accrued litigation settlement (2) — 12,000 Accrued sales and use tax liability 7,336 6,935 Accrued income taxes 3,139 2,559 Purchased media costs (3) 2,965 3,227 Professional services 784 1,062 Other 14,003 13,651 $ 97,524 $ 100,220 (1) Includes $1.4 million and $2.3 million of accrued ESPP employee contributions at January 31, 2023 and 2022. Refer to Note 12, Stock-Based Compensation , for further discussion of the Company's ESPP. (2) In February 2022, the Company and Opal Labs Inc. (“Opal”) agreed to settle all outstanding claims with respect to Opal's complaints alleging breach of contract and violation of Oregon’s Uniform Trade Secrets Act, among other claims. The payment was made in March 2022. (3) Purchased media costs consist of amounts owed to the Company’s vendors for the purchase of advertising space on behalf of its customers. |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the periods presented were as follows: January 31, (in thousands) 2023 2022 Balance at beginning of period $ 49,911 $ 46,823 Business combination — 3,023 Effect of exchange rates 119 65 Balance at end of period $ 50,030 $ 49,911 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Leases [Abstract] | |
Schedule of Lease Cost | The components of lease expense were as follows: (in thousands) Year Ended January 31, 2023 Operating lease cost $ 8,145 Variable lease cost 1,147 Short-term lease cost 763 Total lease cost $ 10,056 The weighted-average remaining lease term and discount rate were as follows: January 31, 2023 Weighted-average remaining lease term (in years) 2.96 Weighted-average discount rate 11.01 % |
Schedule of Maturities of Lease Liabilities | The maturities of lease liabilities under non-cancelable operating leases, net of lease incentives were as follows as of January 31, 2023: (in thousands) Fiscal year ended January 31, 2024 $ 8,553 2025 4,604 2026 3,447 2027 2,239 2028 774 Thereafter — Total minimum lease payments $ 19,617 Less: imputed interest (2,850) Total $ 16,767 Future minimum lease payments under non-cancelable operating leases as of January 31, 2022 under ASC 840 were as follows: (in thousands) Fiscal year ended January 31, 2023 $ 9,676 2024 8,036 2025 3,165 2026 2,034 2027 and thereafter 1,726 Total $ 24,637 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Non-Cancelable Minimum Guaranteed Purchase Commitments for Data and Hosting Services | The Company has non-cancelable minimum guaranteed purchase commitments for data and hosting services as of January 31, 2023 as follows: (in thousands) Fiscal year ended January 31, 2024 $ 86,882 2025 76,431 2026 19,817 2027 23,097 2028 and thereafter 14,706 Total $ 220,933 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | A summary of the Company’s stock option activity for the Plan for year ended January 31, 2023 is as follows: Number of Stock Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Balance as of January 31, 2022 44,355 $ 6.23 7.8 $ 226,504 Exercised (5,392) 4.60 Cancelled/forfeited (5,902) 8.40 Expired (12) 4.24 Balance as of January 31, 2023 33,049 $ 6.11 6.6 $ 135,831 Exercisable as of January 31, 2023 23,808 $ 5.49 6.3 $ 110,167 Vested and expected to vest as of January 31, 2023 31,218 $ 5.91 6.5 $ 133,364 Year Ended January 31, 2023 2022 2021 Intrinsic value of options exercised $ 32,391 $ 83,387 $ 51,952 Estimated grant date fair value of options vested in the period $ 32,085 $ 29,256 $ 14,900 |
Summary of Assumptions Used to Estimate Fair Value of Options Granted to Employees | The following assumptions were used to estimate the fair value of options granted to employees for the years ended January 31, 2022 and 2021: Year Ended January 31, 2022 2021 Expected term (in years) 6.0 6.1 Risk-free interest rate 0.9% - 1.4% 0.3% - 0.8% Expected volatility 50.9% - 52.1% 42.3% - 45.5% Expected dividend rate 0% 0% Fair value of common stock $10.96 - $14.02 $4.93 - $9.07 The fair value of the share purchase rights granted under the ESPP during the year ended January 31, 2023 was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: Year Ended January 31, 2023 2022 Expected term (in years) 0.5 - 1.0 0.5 - 1.0 Risk-free interest rate 2.2% - 4.6% 0.1% - 0.3% Expected volatility 66.2% - 81.9% 49.3% - 57.0% Expected dividend rate 0% 0% Fair value of common stock $8.84 - $9.84 $14.27 - $22.37 |
Summary of RSU Award Activity | A summary of the Company’s RSU activity was as follows: (in thousands except per share data) Number of Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Balance as of January 31, 2022 1,730 $ 14.67 Granted 9,690 12.12 Released (622) 14.17 Cancelled/forfeited (1,398) 13.74 Balance as of January 31, 2023 9,400 $ 12.23 |
Summary of Stock-based Compensation Expense | Stock-based compensation expense included in operating results was allocated as follows: Year Ended January 31, (in thousands) 2023 2022 2021 Cost of subscription $ 1,528 $ 1,794 $ 2,012 Cost of professional 2,249 2,448 1,658 Research and development 10,678 6,417 4,804 Sales and marketing 26,651 19,929 14,976 General and administrative (1) 14,411 19,543 21,619 Stock-based compensation, net of amounts capitalized 55,517 50,131 45,069 Capitalized stock-based compensation 2,540 696 — Total stock-based compensation $ 58,057 $ 50,827 $ 45,069 Year Ended January 31, (in thousands) 2023 2022 2021 Equity classified awards (2) $ 57,057 $ 49,827 $ 44,159 Other awards (3) 1,000 1,000 910 Total stock-based compensation $ 58,057 $ 50,827 $ 45,069 Year Ended January 31, (in thousands) 2023 2022 2021 Stock options (4) $ 23,454 $ 36,385 $ 14,896 Performance-based stock units (5) (55) 897 19 Restricted stock units (4) 24,963 3,196 555 Employee stock purchase plan 8,695 6,142 — Deferred stock compensation plan — 3,206 7,171 Secondary stock sale — — 16,331 Tender offer transaction — — 5,187 Total stock-based compensation $ 57,057 $ 49,827 $ 44,159 (1) For the fiscal years ended January 31, 2023, 2022 and 2021 the net impact of stock-based compensation related to modifications was immaterial. (2) Expense associated with equity-classified awards includes $8.6 million and $6.1 million of ESPP expense recognized during the years ended January 31, 2023 and 2022, respectively. For the year ended January 31, 2021, it includes $16.3 million recognized in connection with the secondary stock sale and $5.2 million recognized in connection with the tender offer transaction. (3) Non-employee grant recorded over five years, representing the same period and in the same manner as if the grantor had paid cash for the services instead of paying with or using the share-based payment award. (4) Stock-based compensation for the year ended January 31, 2022 includes the acceleration of the expense recognized upon the effectiveness of the Company’s registration statement for the Chief Executive Officer’s performance-based stock options. Similarly, the acceleration of the expense for performance-based RSUs upon the effectiveness of the Company’s registration statement is captured within the stock-based compensation for RSUs for the year ended January 31, 2022. (5) The stock-based compensation for performance-based stock units during the year ended January 31, 2023 includes the impact of stock-based compensation modifications. |
Summary of Unrecognized Compensation Cost Related to Unvested Awards Not Yet Recognized | As of January 31, 2023, total unrecognized compensation cost related to unvested awards not yet recognized under all equity compensation plans, was as follows: January 31, 2023 (in thousands) Unrecognized Expense Weighted Average Expense Recognition Period (in years) Stock options $ 28,296 2.1 Performance share units $ 854 2.1 Restricted stock units $ 64,674 3.2 ESPP $ 3,764 1.0 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Loss Per Share | The following table sets forth the computation of basic and diluted net loss per share: Year Ended January 31, (in thousands, except per share amounts) 2023 2022 2021 Numerator: Net loss $ (55,742) $ (111,470) $ (37,970) Deemed dividend in relation to tender offer — — (600) Net loss attributable to Sprinklr common stockholders $ (55,742) $ (111,470) $ (38,570) Denominator: Weighted-average shares outstanding used in computing net loss per share attributable to Sprinklr common stockholders, basic and diluted 259,530 195,020 90,378 Net loss per common share attributable to Sprinklr common stockholders, basic and diluted $ (0.21) $ (0.57) $ (0.42) Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows: Year Ended January 31, (in thousands) 2023 2022 2021 Convertible Preferred Stock — — 120,902 Options to purchase common stock 33,049 44,355 46,455 Convertible note — — 8,653 Performance share units 1,450 3,175 3,100 Restricted stock units 9,400 1,730 450 ESPP 168 242 — Deferred stock compensation plan — — 1,217 Warrants to purchase common stock 2,500 2,500 2,731 Total shares excluded from net loss per share 46,567 52,002 183,508 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Domestic and Foreign Component of Loss Before Provision for Income Taxes | The domestic and foreign component of the loss before provision for income taxes was as follows: Year Ended January 31, (in thousands) 2023 2022 2021 Domestic $ (70,072) $ (123,956) $ (39,957) Foreign 22,604 19,402 5,764 Total $ (47,468) $ (104,554) $ (34,193) |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes consisted of the following: Year Ended January 31, (in thousands) 2023 2022 2021 Current tax provision Federal $ — $ — $ — State 69 67 102 Foreign 8,039 6,987 3,785 $ 8,108 $ 7,054 $ 3,887 Deferred tax expense (benefit): Federal $ 92 $ 88 $ 85 State 142 92 99 Foreign (68) (318) (294) 166 (138) (110) Total provision for income taxes $ 8,274 $ 6,916 $ 3,777 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective tax rate was as follows: Year Ended January 31, 2023 2022 2021 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % Effect of: State taxes, net of U.S. federal benefit 2.2 2.8 0.2 Foreign taxes in excess of the U.S. rate differential (5.5) (1.8) (1.1) Non-deductible expenses (14.0) (8.7) (23.0) Changes in valuation allowance (15.9) (23.9) (16.1) Excess tax benefits related to shared based compensation 4.4 4.8 10.9 Global Intangible Low Taxed Income (GILTI) inclusion (12.7) — — Other 3.1 (0.8) (3.0) (17.4) % (6.6) % (11.1) % |
Schedule of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities were as follows: January 31, (in thousands) 2023 2022 Deferred tax assets: Net operating loss carryforward $ 120,438 $ 105,753 Accrued expenses 1,252 2,003 Accrued commissions 976 718 Depreciation and amortization 749 613 Allowance for doubtful accounts 775 656 Deferred revenue 1,308 4,821 Stock-based compensation 11,340 7,068 Lease right-of-use 2,190 — Other 6 686 Total deferred tax assets $ 139,034 $ 122,318 Less valuation allowance (105,500) (98,093) Deferred tax assets, net of valuation allowance $ 33,534 $ 24,225 Deferred tax liabilities Depreciation and amortization (3,239) (3,566) Capitalized commission costs (27,873) (20,182) Lease liabilities (2,376) — Other (101) (287) Total deferred tax liabilities $ (33,589) $ (24,035) Net deferred tax assets (liabilities) $ (55) $ 190 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending balance of total gross unrecognized tax benefits for the year ended January 31, 2023: Year Ended January 31, (in thousands) 2023 Balance at beginning of period $ 1,539 Tax positions taken during a prior year: Gross increases — Gross decreases (288) Tax positions taken during the current year: Gross increases 477 Balance at end of period $ 1,728 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Region | The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use our cloud based software platform: Year Ended January 31, (in thousands) 2023 2022 2021 Americas $ 397,616 $ 312,927 $ 253,689 EMEA 176,777 138,553 100,057 Other 43,797 40,914 33,184 $ 618,190 $ 492,394 $ 386,930 |
Summary of Long-lived Assets by Geographical Regions | As of January 31, 2023 and 2022, long lived assets by geographic region were as follows: January 31, (in thousands) 2023 2022 Americas (1) $ 18,199 $ 10,472 EMEA 1,051 1,551 Other 3,635 2,682 $ 22,885 $ 14,705 (1) Includes $18.0 million and $10.2 million of fixed assets held in the United States at January 31, 2023 and 2022, respectively. |
Organization and Description _2
Organization and Description of Business (Details) $ / shares in Units, $ in Millions | Jul. 01, 2021 USD ($) | Jul. 01, 2021 shares | Jun. 25, 2021 $ / shares shares | Jan. 31, 2023 subsidiary |
Subsidiary, Sale of Stock [Line Items] | ||||
Number of subsidiaries | subsidiary | 18 | |||
Net proceeds from offering | $ | $ 276 | |||
Underwriting discounts and commissions | $ | $ 16.6 | |||
Common Class A | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Common stock, conversion ratio | 1 | |||
Common Class B | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Shares issued upon conversion of convertible preferred stock (in shares) | 120,902,273 | |||
Convertible preferred stock, conversion ratio | 1 | |||
Shares issued upon conversion of convertible notes (in shares) | 9,694,004 | |||
Common stock, conversion ratio | 1 | |||
IPO | Common Class A | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Number of shares issued and sold (in shares) | 16,625,000 | |||
Offering price (in dollars per share) | $ / shares | $ 16 | |||
Underwriters' option to purchase | Common Class A | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Number of shares issued and sold (in shares) | 1,662,500 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | |||
Jan. 31, 2023 USD ($) segment | Jan. 31, 2022 USD ($) | Jan. 31, 2021 USD ($) | Feb. 01, 2022 USD ($) | |
Accounting Policies [Abstract] | ||||
Number of operating segments | segment | 1 | |||
Foreign currency transaction losses, net | $ 4,700,000 | $ 1,400,000 | $ 2,200,000 | |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | 3,700,000 | |||
Property, Plant and Equipment [Line Items] | ||||
Operating lease right-of-use assets | 15,725,000 | |||
Total | 16,767,000 | |||
Goodwill impairment | 0 | 0 | 0 | |
Advertising expense | $ 2,900,000 | $ 6,800,000 | $ 200,000 | |
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-02 | ||||
Property, Plant and Equipment [Line Items] | ||||
Operating lease right-of-use assets | $ 14,000,000 | |||
Total | $ 14,000,000 | |||
Computer Software, Intangible Asset | ||||
Property, Plant and Equipment [Line Items] | ||||
Intangible asset useful life (in years) | 3 years | |||
Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life (in years) | 2 years | |||
Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life (in years) | 3 years |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) $ in Millions | 12 Months Ended | |||
Jan. 31, 2023 USD ($) revenueSource | Jan. 31, 2022 USD ($) | Jan. 31, 2021 USD ($) | Apr. 30, 2022 | |
Capitalized Contract Cost [Line Items] | ||||
Number of revenue sources | revenueSource | 2 | |||
Capitalized contract cost, average amortization period | 3 years | 5 years | ||
Capitalized costs to obtain customer contracts | $ 113.5 | $ 83 | ||
Amortization of costs to obtain customer contracts | 44.7 | 35.5 | $ 26.6 | |
Revenue recognized previously included in deferred revenue balance | 276.4 | 216.4 | $ 180 | |
Contract assets | 4.8 | 3.2 | ||
Prepaid expenses and other current assets | ||||
Capitalized Contract Cost [Line Items] | ||||
Capitalized costs to obtain customer contracts | 44.1 | 40.7 | ||
Other noncurrent assets | ||||
Capitalized Contract Cost [Line Items] | ||||
Capitalized costs to obtain customer contracts | $ 69.4 | $ 42.3 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligation (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Jan. 31, 2022 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligations | $ 719.5 | $ 569.5 |
Previously Reported | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligations | 586.4 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-02-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligations | $ 395 | |
Timing of satisfaction of performance obligation | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-02-01 | Previously Reported | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligations | $ 409.2 | |
Timing of satisfaction of performance obligation | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-02-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligations | $ 485.2 | |
Timing of satisfaction of performance obligation | 12 months |
Marketable Securities - Availab
Marketable Securities - Available -For-Sale Marketable Securities (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 390,925 | $ 211,182 |
Unrealized Gain | 105 | 1 |
Unrealized Losses | (791) | (200) |
Fair Value | 390,239 | 210,983 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 39,922 | 124,639 |
Unrealized Gain | 8 | 1 |
Unrealized Losses | (68) | (163) |
Fair Value | 39,862 | 124,477 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 12,429 | |
Unrealized Gain | 22 | |
Unrealized Losses | 0 | |
Fair Value | 12,451 | |
U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 128,898 | 37,725 |
Unrealized Gain | 6 | 0 |
Unrealized Losses | (367) | (35) |
Fair Value | 128,537 | 37,690 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 59,545 | |
Unrealized Gain | 28 | |
Unrealized Losses | (155) | |
Fair Value | 59,419 | |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 150,131 | 48,818 |
Unrealized Gain | 41 | 0 |
Unrealized Losses | (202) | (2) |
Fair Value | $ 149,970 | $ 48,816 |
Marketable Securities - Debt Se
Marketable Securities - Debt Securities Continuous Unrealized Loss Position (Details) $ in Thousands | Jan. 31, 2023 USD ($) |
Corporate bonds | |
Debt Securities, Available-for-sale [Line Items] | |
Fair Value | $ 39,862 |
Gross Unrealized Losses | (68) |
U.S. government and agency securities | |
Debt Securities, Available-for-sale [Line Items] | |
Fair Value | 128,537 |
Gross Unrealized Losses | (367) |
Certificates of deposit | |
Debt Securities, Available-for-sale [Line Items] | |
Fair Value | 59,419 |
Gross Unrealized Losses | (155) |
Commercial paper | |
Debt Securities, Available-for-sale [Line Items] | |
Fair Value | 149,970 |
Gross Unrealized Losses | $ (202) |
Marketable Securities -Narrativ
Marketable Securities -Narrative (Details) | Jan. 31, 2023 security |
Investments, Debt and Equity Securities [Abstract] | |
Debt securities, available-for-sale, unrealized loss position, number of positions | 180 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) | 12 Months Ended | |
Jan. 31, 2023 USD ($) security | Jan. 31, 2022 USD ($) security | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 390,239,000 | $ 210,983,000 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, number of positions | security | 0 | 0 |
Other-than-temporary impairment loss, debt securities, available-for-Sale | $ 0 | $ 0 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 464,090,000 | 492,074,000 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 73,851,000 | 281,091,000 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 390,239,000 | 210,983,000 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 0 | 0 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 39,862,000 | 124,477,000 |
Corporate bonds | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 39,862,000 | 124,477,000 |
Corporate bonds | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Corporate bonds | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 39,862,000 | 124,477,000 |
Corporate bonds | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 12,451,000 | |
Municipal bonds | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 12,451,000 | 0 |
Municipal bonds | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Municipal bonds | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 12,451,000 | 0 |
Municipal bonds | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 128,537,000 | 37,690,000 |
U.S. government and agency securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 128,537,000 | 37,690,000 |
U.S. government and agency securities | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
U.S. government and agency securities | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 128,537,000 | 37,690,000 |
U.S. government and agency securities | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 59,419,000 | |
Certificates of deposit | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 59,419,000 | 0 |
Certificates of deposit | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Certificates of deposit | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 59,419,000 | 0 |
Certificates of deposit | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 149,970,000 | 48,816,000 |
Commercial paper | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 149,970,000 | 48,816,000 |
Commercial paper | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Commercial paper | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 149,970,000 | 48,816,000 |
Commercial paper | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Money market funds | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 73,851,000 | 281,091,000 |
Money market funds | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 73,851,000 | 281,091,000 |
Money market funds | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Money market funds | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 0 | $ 0 |
Balance Sheet Components - Prep
Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid hosting and data costs | $ 12,168 | $ 46,513 |
Prepaid software costs | 6,079 | 5,765 |
Capitalized commissions costs, current portion | 44,051 | 40,695 |
Prepaid insurance | 1,734 | 2,118 |
Contract assets | 4,785 | 3,161 |
Other | 10,048 | 10,915 |
Prepaid expenses and other current assets | $ 78,865 | $ 109,167 |
Balance Sheet Components - Prop
Balance Sheet Components - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Less accumulated depreciation and amortization | $ (16,875) | $ (12,433) |
Total fixed assets, net | 7,483 | 6,297 |
Capitalized internal-use software | 35,962 | 23,065 |
Less accumulated amortization | (20,560) | (14,657) |
Total capitalized internal-use software | 15,402 | 8,408 |
Property and equipment, net | 22,885 | 14,705 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | 16,283 | 13,544 |
Office furniture and other | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | 2,540 | 1,256 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | $ 5,535 | $ 3,930 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Depreciation and amortization for property and equipment | $ 6,148 | $ 4,218 | $ 2,538 |
Amortization expense for capitalized internal-use software | 5,903 | 3,428 | 2,526 |
Capitalized internal-use software costs | $ 12,900 | $ 7,000 | $ 3,800 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Bonuses | $ 25,057 | $ 22,622 |
Employee liabilities | 16,374 | 21,668 |
Commissions | 27,866 | 16,496 |
Accrued litigation settlement | 0 | 12,000 |
Accrued sales and use tax liability | 7,336 | 6,935 |
Accrued income taxes | 3,139 | 2,559 |
Purchased media costs | 2,965 | 3,227 |
Professional services | 784 | 1,062 |
Other | 14,003 | 13,651 |
Total accrued liabilities | 97,524 | 100,220 |
Accrued ESPP employee contributions | $ 1,400 | $ 2,300 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
Goodwill [Roll Forward] | ||
Balance at beginning of period | $ 49,911 | $ 46,823 |
Business combination | 0 | 3,023 |
Effect of exchange rates | 119 | 65 |
Balance at end of period | $ 50,030 | $ 49,911 |
Debt - Additional Information (
Debt - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||||
Jun. 25, 2021 shares | Jun. 30, 2021 shares | Jan. 31, 2023 USD ($) | Jan. 31, 2022 USD ($) | Jan. 31, 2021 USD ($) | May 31, 2020 USD ($) | |
Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Unused borrowing capacity | $ 4,600,000 | $ 700,000 | ||||
Common Class B | ||||||
Debt Instrument [Line Items] | ||||||
Shares issued upon conversion of convertible notes (in shares) | shares | 9,694,004 | |||||
Common Class B | Senior Subordinated Secured Convertible Note | ||||||
Debt Instrument [Line Items] | ||||||
Shares issued upon conversion of convertible notes (in shares) | shares | 9,694,004 | |||||
Convertible Note | Senior Subordinated Secured Convertible Note | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 75,000,000 | |||||
Interest expense, debt | 3,200,000 | $ 5,500,000 | ||||
Line of Credit | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | |||||
Debt instrument, basis spread and variable rate, minimum | 0.0550 | |||||
Monthly debt ratio minimum | 1.25 | |||||
Line of Credit | Revolving Credit Facility | Federal Funds Effective Rate | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.50% | |||||
Line of Credit | Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 15,000,000 | $ 5,000,000 |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) $ in Thousands | 12 Months Ended |
Jan. 31, 2023 USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 8,145 |
Variable lease cost | 1,147 |
Short-term lease cost | 763 |
Total lease cost | $ 10,056 |
Weighted-average remaining lease term (in years) | 2 years 11 months 15 days |
Weighted-average discount rate | 11.01% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) $ in Thousands | Jan. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 8,553 |
2025 | 4,604 |
2026 | 3,447 |
2027 | 2,239 |
2028 | 774 |
Thereafter | 0 |
Total minimum lease payments | 19,617 |
Less: imputed interest | (2,850) |
Total | $ 16,767 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rental Payments for Operating Leases Under ASC 840 (Details) $ in Thousands | Jan. 31, 2022 USD ($) |
Leases [Abstract] | |
2023 | $ 9,676 |
2024 | 8,036 |
2025 | 3,165 |
2026 | 2,034 |
2027 and thereafter | 1,726 |
Total | $ 24,637 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Leases [Abstract] | ||
Rent expense | $ 7.4 | $ 7.2 |
Commitments and Contingencies -
Commitments and Contingencies - Purchase Commitments (Details) $ in Thousands | Jan. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2024 | $ 86,882 |
2025 | 76,431 |
2026 | 19,817 |
2027 | 23,097 |
2028 and thereafter | 14,706 |
Total | $ 220,933 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Jul. 01, 2021 USD ($) | Jun. 30, 2021 shares | Jan. 31, 2021 USD ($) $ / shares shares | Jan. 31, 2023 $ / shares shares | Jan. 31, 2022 USD ($) $ / shares shares | Jun. 25, 2021 vote $ / shares shares | Jan. 31, 2012 $ / shares shares | |
Class of Stock [Line Items] | |||||||
Preferred stock, shares authorized (in shares) | 20,000,000 | ||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.00003 | ||||||
Net proceeds from offering | $ | $ 276 | ||||||
Number of shares called by warrants or rights (in shares) | 2,500,000 | 231,000 | |||||
Warrant exercise price (in dollars per share) | $ / shares | $ 10 | $ 0.08 | |||||
Fair value of warrants | $ | $ 7.6 | ||||||
Common stock warrants outstanding (in shares) | 2,500,000 | 2,500,000 | |||||
Private Placement | |||||||
Class of Stock [Line Items] | |||||||
Net proceeds from offering | $ | $ 200 | ||||||
Common Class A | |||||||
Class of Stock [Line Items] | |||||||
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00003 | $ 0.00003 | $ 0.00003 | ||||
Votes per share | vote | 1 | ||||||
Common stock, conversion ratio | 1 | ||||||
Common Class B | |||||||
Class of Stock [Line Items] | |||||||
Common stock, shares authorized (in shares) | 310,000,000 | 310,000,000 | 310,000,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00003 | $ 0.00003 | $ 0.00003 | ||||
Votes per share | vote | 10 | ||||||
Common stock, conversion ratio | 1 | ||||||
Shares issued upon conversion of convertible preferred stock (in shares) | 120,902,273 | ||||||
Convertible preferred stock, conversion ratio | 1 | ||||||
Shares issued upon cashless exercise of common stock warrants (in shares) | 230,259 | ||||||
Series G-1 Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Offering price (in dollars per share) | $ / shares | $ 9.25 | ||||||
Carrying value of preferred stock | $ | $ 95.9 | ||||||
Series G-1 Preferred Stock | Private Placement | |||||||
Class of Stock [Line Items] | |||||||
Number of shares issued and sold (in shares) | 10,800,000 | ||||||
Offering price (in dollars per share) | $ / shares | $ 9.25 | ||||||
Series G-2 Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Offering price (in dollars per share) | $ / shares | $ 11 | ||||||
Carrying value of preferred stock | $ | $ 95.9 | ||||||
Series G-2 Preferred Stock | Private Placement | |||||||
Class of Stock [Line Items] | |||||||
Number of shares issued and sold (in shares) | 9,100,000 | ||||||
Offering price (in dollars per share) | $ / shares | $ 11 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||||
Jul. 01, 2021 USD ($) | Jun. 22, 2021 USD ($) shares | Jun. 07, 2021 shares | Jun. 30, 2021 USD ($) period $ / shares shares | May 31, 2021 shares | Jan. 31, 2021 USD ($) day $ / shares shares | Nov. 30, 2020 USD ($) $ / shares shares | Oct. 31, 2020 USD ($) $ / shares shares | Mar. 31, 2019 USD ($) tranche $ / shares shares | Jan. 31, 2023 USD ($) $ / shares shares | Jan. 31, 2022 USD ($) $ / shares shares | Jan. 31, 2021 USD ($) day $ / shares | May 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of outstanding stock used to calculate the increase in shares available for issuance | 5% | ||||||||||||
Shares available for grant (in shares) | 51,298,472 | ||||||||||||
Stock-based compensation, net of amounts capitalized | $ | $ 55,517 | $ 50,131 | $ 45,069 | ||||||||||
Granted (in shares) | 0 | ||||||||||||
Weighted average grant date fair value of options granted (in dollars per share) | $ / shares | $ 5.58 | $ 2.96 | |||||||||||
Accrued ESPP employee contributions | $ | $ 1,400 | $ 2,300 | |||||||||||
Net proceeds from offering | $ | $ 276,000 | ||||||||||||
Stock-based compensation, net of amounts capitalized | $ | 58,057 | 50,827 | $ 45,069 | ||||||||||
Secondary stock sale | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares issued and sold (in shares) | 9,707,427 | ||||||||||||
Offering price (in dollars per share) | $ / shares | $ 9.25 | ||||||||||||
Net proceeds from offering | $ | $ 89,800 | ||||||||||||
Tender offer transaction | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Offering price (in dollars per share) | $ / shares | $ 9.25 | ||||||||||||
Tender offer transaction | Convertible Preferred Stock | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Shares issued | 5,974,776 | ||||||||||||
Preferred stock dividends | $ | $ 600 | ||||||||||||
Tender offer transaction | Common Stock | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Shares issued | 3,303,891 | ||||||||||||
Equity classified awards | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock-based compensation, net of amounts capitalized | $ | 57,057 | 49,827 | 44,159 | ||||||||||
Equity classified awards | Secondary stock sale | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock-based compensation, net of amounts capitalized | $ | $ 16,300 | 0 | 0 | 16,331 | |||||||||
Equity classified awards | Tender offer transaction | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock-based compensation, net of amounts capitalized | $ | $ 5,200 | $ 0 | $ 0 | $ 5,187 | |||||||||
Chief Executive Officer | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 9,274,528 | ||||||||||||
Chief Executive Officer | Tranche One | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 2,318,632 | ||||||||||||
Chief Executive Officer | Tranche Two through Four | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 6,955,896 | ||||||||||||
Chief Executive Officer | Tranche Two | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 2,318,632 | ||||||||||||
Vested (in shares) | 2,318,632 | ||||||||||||
Chief Executive Officer | Tranche Three | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 2,318,632 | ||||||||||||
Chief Executive Officer | Tranche Four | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 2,318,632 | ||||||||||||
Performance share units | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 3,100,000 | ||||||||||||
Award requisite service period | 5 years | ||||||||||||
Share-based compensation arrangement, threshold consecutive trading days | day | 45 | 45 | |||||||||||
Equity volatility | 40% | ||||||||||||
Risk-free rate | 0.42% | ||||||||||||
Fair value of common stock, minimum (in dollars per share) | $ / shares | $ 9.07 | ||||||||||||
Expected term (in years) | 5 years | ||||||||||||
Grant date fair value | $ | $ 3,500 | $ 3,500 | |||||||||||
Stock-based compensation, net of amounts capitalized | $ | $ 400 | ||||||||||||
Performance based units, shares outstanding (in shares) | 1,450,000 | ||||||||||||
Performance share units | Minimum | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 0 | ||||||||||||
Weighted-average trading price of common stock (in dollars per share) | $ / shares | $ 30 | ||||||||||||
Performance share units | Maximum | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 3,100,000 | ||||||||||||
Weighted-average trading price of common stock (in dollars per share) | $ / shares | $ 100 | ||||||||||||
Options to purchase common stock | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Fair value of common stock, minimum (in dollars per share) | $ / shares | $ 10.96 | $ 4.93 | |||||||||||
Expected term (in years) | 6 years | 6 years 1 month 6 days | |||||||||||
Expected dividend rate | 0% | 0% | |||||||||||
Options to purchase common stock | Equity classified awards | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock-based compensation, net of amounts capitalized | $ | $ 23,454 | $ 36,385 | $ 14,896 | ||||||||||
Options to purchase common stock | Chief Executive Officer | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Equity volatility | 44% | ||||||||||||
Risk-free rate | 2.60% | ||||||||||||
Fair value of common stock, minimum (in dollars per share) | $ / shares | $ 4.14 | ||||||||||||
Expected term (in years) | 10 years | ||||||||||||
Grant date fair value | $ | $ 6,100 | ||||||||||||
Number of tranches | tranche | 4 | ||||||||||||
Options to purchase common stock | Chief Executive Officer | Tranche One | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Award vesting period | 3 years | ||||||||||||
Options to purchase common stock | Chief Executive Officer | Tranche Two | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock-based compensation, net of amounts capitalized | $ | $ 5,800 | ||||||||||||
Restricted stock units | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 300,000 | 9,690,000 | |||||||||||
Award requisite service period | 5 years | ||||||||||||
Stock-based compensation, net of amounts capitalized | $ | $ 600 | ||||||||||||
Performance based units, shares outstanding (in shares) | 9,400,000 | 1,730,000 | |||||||||||
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 12.23 | $ 14.67 | |||||||||||
Restricted stock units | Equity classified awards | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock-based compensation, net of amounts capitalized | $ | $ 24,963 | $ 3,196 | 555 | ||||||||||
Restricted stock units | Tranche One | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Award requisite service period | 1 year | ||||||||||||
Award vesting percentage | 20% | ||||||||||||
Restricted stock units | Tranche Two | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Award requisite service period | 4 years | ||||||||||||
ESPP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of outstanding stock used to calculate the increase in shares available for issuance | 1% | ||||||||||||
Fair value of common stock, minimum (in dollars per share) | $ / shares | $ 8.84 | $ 14.27 | |||||||||||
Stock-based compensation, net of amounts capitalized | $ | $ 8,600 | $ 6,100 | |||||||||||
Expected dividend rate | 0% | 0% | |||||||||||
Shares authorized for issuance (in shares) | 5,100,000 | ||||||||||||
Number of additional shares allowable under the plan | 15,300,000 | ||||||||||||
Shares available for issuance (in shares) | 8,479,135 | ||||||||||||
Purchase price of shares | 85% | ||||||||||||
Consecutive offering period | 12 months | ||||||||||||
Number of purchase periods | period | 2 | ||||||||||||
Length of purchase period | 6 months | ||||||||||||
Incremental charges due to modification | $ | $ 2,400 | $ 3,400 | |||||||||||
ESPP | Equity classified awards | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock-based compensation, net of amounts capitalized | $ | $ 8,695 | $ 6,142 | $ 0 | ||||||||||
ESPP | Minimum | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Expected term (in years) | 6 months | 6 months | |||||||||||
ESPP | Maximum | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Expected term (in years) | 1 year | 1 year | |||||||||||
Deferred stock compensation plan | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Equity volatility | 48.20% | ||||||||||||
Risk-free rate | 0.17% | ||||||||||||
Fair value of common stock, minimum (in dollars per share) | $ / shares | $ 4.93 | ||||||||||||
Expected term (in years) | 1 year | ||||||||||||
Stock-based compensation, net of amounts capitalized | $ | $ 3,200 | ||||||||||||
Minimum amount of payroll deduction | 10% | ||||||||||||
Maximum amount of payroll deduction | 25% | ||||||||||||
Put right | $ | $ 1,900 | ||||||||||||
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 5.86 | ||||||||||||
Shares issued | 1,769,945 | ||||||||||||
Common Class A | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares authorized | 80,401,680 | ||||||||||||
Number of new shares authorized | 25,480,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Number of Stock Options Outstanding | |||
Beginning balance (in shares) | 44,355,000 | ||
Exercised (in shares) | (5,392,000) | ||
Cancelled/forfeited (in shares) | (5,902,000) | ||
Expired (in shares) | (12,000) | ||
Ending balance (in shares) | 33,049,000 | 44,355,000 | |
Exercisable (in shares) | 23,808,000 | ||
Vested and expected to vest (in shares) | 31,218,000 | ||
Weighted Average Exercise Price | |||
Beginning balance (in dollars per share) | $ 6.23 | ||
Exercised (in dollars per share) | 4.60 | ||
Cancelled/forfeited (in dollars per share) | 8.40 | ||
Expired (in dollars per share) | 4.24 | ||
Ending balance (in dollars per share) | 6.11 | $ 6.23 | |
Exercisable (in dollars per share) | 5.49 | ||
Vested and expected to vest (in dollars per share) | $ 5.91 | ||
Weighted Average Remaining Contractual Life | |||
Balance | 6 years 7 months 6 days | 7 years 9 months 18 days | |
Exercisable | 6 years 3 months 18 days | ||
Vested and expected to vest | 6 years 6 months | ||
Aggregate Intrinsic Value | |||
Balance | $ 135,831 | $ 226,504 | |
Exercisable | 110,167 | ||
Vested and expected to vest | 133,364 | ||
Intrinsic value of options exercised | 32,391 | 83,387 | $ 51,952 |
Estimated grant date fair value of options vested in the period | $ 32,085 | $ 29,256 | $ 14,900 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value Assumptions (Details) - $ / shares | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Options to purchase common stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 years | 6 years 1 month 6 days | |
Risk-free interest rate, minimum | 0.90% | 0.30% | |
Risk-free interest rate, maximum | 1.40% | 0.80% | |
Expected volatility, minimum | 50.90% | 42.30% | |
Expected volatility, maximum | 52.10% | 45.50% | |
Expected dividend rate | 0% | 0% | |
Fair value of common stock, minimum (in dollars per share) | $ 10.96 | $ 4.93 | |
Fair value of common stock, maximum (in dollars per share) | $ 14.02 | $ 9.07 | |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, minimum | 2.20% | 0.10% | |
Risk-free interest rate, maximum | 4.60% | 0.30% | |
Expected volatility, minimum | 66.20% | 49.30% | |
Expected volatility, maximum | 81.90% | 57% | |
Expected dividend rate | 0% | 0% | |
Fair value of common stock, minimum (in dollars per share) | $ 8.84 | $ 14.27 | |
Fair value of common stock, maximum (in dollars per share) | $ 9.84 | $ 22.37 | |
ESPP | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 months | 6 months | |
ESPP | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 1 year | 1 year |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Details) - $ / shares | 1 Months Ended | 12 Months Ended |
Jan. 31, 2021 | Jan. 31, 2023 | |
Number of Restricted Stock Units Outstanding | ||
Cancelled/forfeited (in shares) | (5,902,000) | |
Restricted stock units | ||
Number of Restricted Stock Units Outstanding | ||
Beginning balance (in shares) | 1,730,000 | |
Granted (in shares) | 300,000 | 9,690,000 |
Release (in shares) | (622,000) | |
Cancelled/forfeited (in shares) | (1,398,000) | |
Ending balance (in shares) | 9,400,000 | |
Weighted Average Grant Date Fair Value | ||
Beginning balance (in dollars per share) | $ 14.67 | |
Granted (in dollars per share) | 12.12 | |
Released (in dollars per share) | 14.17 | |
Cancelled/forfeited (in dollars per share) | 13.74 | |
Ending balance (in dollars per share) | $ 12.23 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jan. 31, 2021 | Nov. 30, 2020 | Oct. 31, 2020 | Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation, net of amounts capitalized | $ 55,517 | $ 50,131 | $ 45,069 | |||
Capitalized stock-based compensation | 2,540 | 696 | 0 | |||
Stock-based compensation, net of amounts capitalized | 58,057 | 50,827 | 45,069 | |||
Restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation, net of amounts capitalized | $ 600 | |||||
ESPP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation, net of amounts capitalized | 8,600 | 6,100 | ||||
Equity classified awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation, net of amounts capitalized | 57,057 | 49,827 | 44,159 | |||
Equity classified awards | Options to purchase common stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation, net of amounts capitalized | 23,454 | 36,385 | 14,896 | |||
Equity classified awards | Performance share units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation, net of amounts capitalized | (55) | 897 | 19 | |||
Equity classified awards | Restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation, net of amounts capitalized | 24,963 | 3,196 | 555 | |||
Equity classified awards | ESPP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation, net of amounts capitalized | 8,695 | 6,142 | 0 | |||
Equity classified awards | Deferred stock compensation plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation, net of amounts capitalized | 0 | 3,206 | 7,171 | |||
Equity classified awards | Secondary stock sale | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation, net of amounts capitalized | $ 16,300 | 0 | 0 | 16,331 | ||
Equity classified awards | Tender offer transaction | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation, net of amounts capitalized | $ 5,200 | 0 | 0 | 5,187 | ||
Other awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation, net of amounts capitalized | $ 1,000 | 1,000 | 910 | |||
Award vesting period | 5 years | |||||
Cost of Sales | Cost of subscription | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation, net of amounts capitalized | $ 1,528 | 1,794 | 2,012 | |||
Cost of Sales | Cost of professional | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation, net of amounts capitalized | 2,249 | 2,448 | 1,658 | |||
Research and development | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation, net of amounts capitalized | 10,678 | 6,417 | 4,804 | |||
Sales and marketing | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation, net of amounts capitalized | 26,651 | 19,929 | 14,976 | |||
General and administrative | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation, net of amounts capitalized | $ 14,411 | $ 19,543 | $ 21,619 |
Stock-Based Compensation - Cost
Stock-Based Compensation - Costs Not Yet Recognized (Details) $ in Thousands | 12 Months Ended |
Jan. 31, 2023 USD ($) | |
Options to purchase common stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Expense | $ 28,296 |
Weighted Average Expense Recognition Period (in years) | 2 years 1 month 6 days |
Performance share units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Expense | $ 854 |
Weighted Average Expense Recognition Period (in years) | 2 years 1 month 6 days |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Expense | $ 64,674 |
Weighted Average Expense Recognition Period (in years) | 3 years 2 months 12 days |
ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Expense | $ 3,764 |
Weighted Average Expense Recognition Period (in years) | 1 year |
Net Loss Per Share - Narrative
Net Loss Per Share - Narrative (Details) | Jun. 30, 2021 stockClass |
Earnings Per Share [Abstract] | |
Number of classes of common stock | 2 |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Net loss | $ (55,742) | $ (111,470) | $ (37,970) |
Deemed dividend in relation to tender offer | 0 | 0 | (600) |
Net loss attributable to Sprinklr common stockholders | $ (55,742) | $ (111,470) | $ (38,570) |
Weighted average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic (in shares) | 259,530 | 195,020 | 90,378 |
Weighted average shares used in computing net loss per share attributable to Class A and Class B common stockholders, diluted (in shares) | 259,530 | 195,020 | 90,378 |
Net income loss per common share attributable to Sprinklr common stockholders - basic (in dollars per share) | $ (0.21) | $ (0.57) | $ (0.42) |
Net income loss per common share attributable to Sprinklr common stockholders - diluted (in dollars per share) | $ (0.21) | $ (0.57) | $ (0.42) |
Net Loss Per Share - Potentiall
Net Loss Per Share - Potentially Dilutive Securities Excluded from Diluted Per Share Calculations (Details) - shares shares in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares excluded from net loss per share (in shares) | 46,567 | 52,002 | 183,508 |
Convertible Preferred Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares excluded from net loss per share (in shares) | 0 | 0 | 120,902 |
Options to purchase common stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares excluded from net loss per share (in shares) | 33,049 | 44,355 | 46,455 |
Convertible note | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares excluded from net loss per share (in shares) | 0 | 0 | 8,653 |
Performance share units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares excluded from net loss per share (in shares) | 1,450 | 3,175 | 3,100 |
Restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares excluded from net loss per share (in shares) | 9,400 | 1,730 | 450 |
ESPP | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares excluded from net loss per share (in shares) | 168 | 242 | 0 |
Deferred stock compensation plan | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares excluded from net loss per share (in shares) | 0 | 0 | 1,217 |
Warrants to purchase common stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares excluded from net loss per share (in shares) | 2,500 | 2,500 | 2,731 |
Income Taxes - Schedule of Loss
Income Taxes - Schedule of Loss before Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (70,072) | $ (123,956) | $ (39,957) |
Foreign | 22,604 | 19,402 | 5,764 |
Loss before provision for income taxes | $ (47,468) | $ (104,554) | $ (34,193) |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Current tax provision | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 69 | 67 | 102 |
Foreign | 8,039 | 6,987 | 3,785 |
Total current tax provision | 8,108 | 7,054 | 3,887 |
Deferred tax expense (benefit): | |||
Federal | 92 | 88 | 85 |
State | 142 | 92 | 99 |
Foreign | (68) | (318) | (294) |
Deferred income taxes | 166 | (138) | (110) |
Total provision for income taxes | $ 8,274 | $ 6,916 | $ 3,777 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Income Tax Rate (Details) | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate | 21% | 21% | 21% |
Effect of: | |||
State taxes, net of U.S. federal benefit | 2.20% | 2.80% | 0.20% |
Foreign taxes in excess of the U.S. rate differential | (5.50%) | (1.80%) | (1.10%) |
Non-deductible expenses | (14.00%) | (8.70%) | (23.00%) |
Changes in valuation allowance | (15.90%) | (23.90%) | (16.10%) |
Excess tax benefits related to shared based compensation | 4.40% | 4.80% | 10.90% |
Global Intangible Low Taxed Income (GILTI) inclusion | (12.70%) | 0% | 0% |
Other | 3.10% | (0.80%) | (3.00%) |
Effective income tax rate | (17.40%) | (6.60%) | (11.10%) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Deferred tax assets: | ||
Net operating loss carryforward | $ 120,438 | $ 105,753 |
Accrued expenses | 1,252 | 2,003 |
Accrued commissions | 976 | 718 |
Depreciation and amortization | 749 | 613 |
Allowance for doubtful accounts | 775 | 656 |
Deferred revenue | 1,308 | 4,821 |
Stock-based compensation | 11,340 | 7,068 |
Lease right-of-use | 2,190 | 0 |
Other | 6 | 686 |
Total deferred tax assets | 139,034 | 122,318 |
Less valuation allowance | (105,500) | (98,093) |
Deferred tax assets, net of valuation allowance | 33,534 | 24,225 |
Deferred tax liabilities | ||
Depreciation and amortization | (3,239) | (3,566) |
Capitalized commission costs | (27,873) | (20,182) |
Lease liabilities | (2,376) | 0 |
Other | (101) | (287) |
Total deferred tax liabilities | (33,589) | (24,035) |
Net deferred tax liabilities | $ (55) | |
Net deferred tax assets | $ 190 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | $ 105,500 | $ 98,093 |
Foreign earnings | 79,500 | |
Domestic Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 452,200 | |
State and Local Jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 317,800 | |
Foreign Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 13,700 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) $ in Thousands | 12 Months Ended |
Jan. 31, 2023 USD ($) | |
Schedule of Unrecognized Tax Benefits Roll Forward | |
Beginning balance | $ 1,539 |
Tax positions taken during a prior year: | |
Gross increases | 0 |
Gross decreases | (288) |
Tax positions taken during the current year: | |
Gross increases | 477 |
Ending balance | $ 1,728 |
Geographic Information (Details
Geographic Information (Details) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 USD ($) segment | Jan. 31, 2022 USD ($) | Jan. 31, 2021 USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of operating segments | segment | 1 | ||
Revenue | $ 618,190 | $ 492,394 | $ 386,930 |
Long-lived assets | 22,885 | 14,705 | |
Americas | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 397,616 | 312,927 | 253,689 |
Long-lived assets | 18,199 | 10,472 | |
EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 176,777 | 138,553 | 100,057 |
Long-lived assets | 1,051 | 1,551 | |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 43,797 | 40,914 | 33,184 |
Long-lived assets | 3,635 | 2,682 | |
US | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 373,100 | 293,100 | $ 240,100 |
Long-lived assets | $ 18,000 | $ 10,200 |
Related Parties (Details)
Related Parties (Details) $ in Millions | 12 Months Ended |
Jan. 31, 2023 USD ($) | |
Board of Directors Chairman | |
Related Party Transaction [Line Items] | |
Purchases from related party | $ 0.1 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
Retirement Benefits [Abstract] | ||
Maximum employee contribution (as a percent) | 100% | |
Employer matching contribution (as a percent) | 30% | 50% |
Employer matching contribution, percent of employees' gross pay | 2% | |
Maximum employer matching contribution, percent of employees deferral | 4% | 4% |
Maximum employer matching contribution, amount | $ 500 |
Subsequent events (Details)
Subsequent events (Details) | 6 Months Ended |
Jul. 31, 2023 | |
Subsequent Event | Forecast | |
Subsequent Event [Line Items] | |
Approved number of positions to be eliminated, percent | 4% |