Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Jan. 31, 2020 | Mar. 06, 2020 | Jul. 31, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Zoom Video Communications, Inc. | ||
Entity Central Index Key | 0001585521 | ||
Current Fiscal Year End Date | --01-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Shell Company | false | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 3,600,000 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Class A Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 127,468,829 | ||
Class B Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 151,532,787 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 283,134 | $ 63,624 |
Marketable securities | 572,060 | 112,777 |
Accounts receivable, net of allowances of $7,634 and $2,071 as of January 31, 2020 and 2019, respectively | 120,435 | 63,613 |
Deferred contract acquisition costs, current | 44,885 | 26,453 |
Prepaid Expense and Other Assets, Current | 75,008 | 10,252 |
Total current assets | 1,095,522 | 276,719 |
Deferred contract acquisition costs, noncurrent | 46,245 | 29,063 |
Property and equipment, net | 57,138 | 37,275 |
Operating lease right-of-use assets | 68,608 | |
Other assets, noncurrent | 22,332 | 11,508 |
Total assets | 1,289,845 | 354,565 |
Current liabilities: | ||
Accounts payable | 1,596 | 4,963 |
Accrued expenses and other current liabilities | 122,692 | 32,256 |
Deferred revenue, current | 209,542 | 115,122 |
Total current liabilities | 333,830 | 152,341 |
Deferred revenue, noncurrent | 20,994 | 10,651 |
Operating lease liabilities, noncurrent | 64,792 | |
Other liabilities, noncurrent | 36,286 | 39,460 |
Total liabilities | 455,902 | 202,452 |
Commitments and contingencies (Note 8) | ||
Convertible preferred stock, $0.001 par value per share, zero and 158,104,540 shares authorized as of January 31, 2020 and 2019, respectively; zero and 152,665,804 shares issued and outstanding as of January 31, 2020 and 2019, respectively | 0 | 159,552 |
Stockholders’ equity (deficit): | ||
Preferred stock, $0.001 par value per share, 200,000,000 and zero shares authorized as of January 31, 2020 and 2019, respectively; zero shares issued and outstanding as of January 31, 2020 and 2019 | 0 | 0 |
Common stock, $0.001 par value per share, 2,000,000,000 and 320,000,000 Class A shares authorized as of January 31, 2020 and 2019, respectively; 123,391,114 and zero shares issued and outstanding as of January 31, 2020 and 2019, respectively; 300,000,000 Class B shares authorized as of January 31, 2020 and 2019; 155,336,747 and 90,327,435 shares issued and outstanding as of January 31, 2020 and 2019, respectively | 277 | 89 |
Additional paid-in capital | 832,705 | 17,760 |
Accumulated other comprehensive income (loss) | 809 | (135) |
Retained earnings (accumulated deficit) | 152 | (25,153) |
Total stockholders’ equity (deficit) | 833,943 | (7,439) |
Total liabilities, convertible preferred stock, and stockholders’ equity (deficit) | $ 1,289,845 | $ 354,565 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Accounts receivable, allowances | $ 7,634 | $ 2,071 |
Convertible preferred stock par value (in dollars per share) | $ 0.001 | $ 0.001 |
Convertible preferred stock, shares outstanding (in shares) | 0 | 152,665,804 |
Convertible preferred stock, shares issued (in shares) | 0 | 152,665,804 |
Convertible preferred stock, shares authorized (in shares) | 0 | 158,104,540 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 200,000,000 | 0 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | |
Common stock, shares authorized (in shares) | 2,000,000,000 | 320,000,000 |
Common stock, shares issued (in shares) | 123,391,114 | 0 |
Common stock, shares outstanding (in shares) | 123,391,114 | 0 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 155,336,747 | |
Common stock, shares outstanding (in shares) | 155,336,747 | 90,327,435 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Income Statement [Abstract] | |||
Revenue | $ 622,658 | $ 330,517 | $ 151,478 |
Cost of revenue | 115,396 | 61,001 | 30,780 |
Gross profit | 507,262 | 269,516 | 120,698 |
Operating expenses: | |||
Research and development | 67,079 | 33,014 | 15,733 |
Sales and marketing | 340,646 | 185,821 | 82,707 |
General and administrative | 86,841 | 44,514 | 27,091 |
Total operating expenses | 494,566 | 263,349 | 125,531 |
Income (loss) from operations | 12,696 | 6,167 | (4,833) |
Interest income and other, net | 13,666 | 2,182 | 1,315 |
Total | 26,362 | 8,349 | (3,518) |
Provision for income taxes | 1,057 | 765 | 304 |
Net income (loss) | 25,305 | 7,584 | (3,822) |
Distributed earnings attributable to participating securities | 0 | 0 | (4,405) |
Undistributed earnings attributable to participating securities | (3,555) | (7,584) | 0 |
Net income (loss) attributable to common stockholders | $ 21,750 | $ 0 | $ (8,227) |
Net income (loss) per share attributable to common stockholders: | |||
Basic (in dollars per share) | $ 0.09 | $ 0 | $ (0.11) |
Diluted (in dollars per share) | $ 0.09 | $ 0 | $ (0.11) |
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders: | |||
Basic (in shares) | 233,641,336 | 84,483,094 | 78,119,865 |
Diluted (in shares) | 254,298,014 | 116,005,681 | 78,119,865 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 25,305 | $ 7,584 | $ (3,822) |
Other comprehensive income (loss): | |||
Unrealized gain (loss) on available-for-sale marketable securities, net of tax | 944 | 396 | (531) |
Comprehensive income (loss) | $ 26,249 | $ 7,980 | $ (4,353) |
CONSOLIDATED STATEMENTS OF CONV
CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' (DEFICIT) EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive (Loss) Income | (Accumulated Deficit) Retained Earnings |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares outstanding (in shares) | 79,650,896 | ||||
Beginning balance (in shares) at Jan. 31, 2017 | 154,031,604 | ||||
Beginning balance at Jan. 31, 2017 | $ 159,757 | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Repurchase of Series A convertible preferred stock (in shares) | (1,365,800) | ||||
Repurchase of Series A convertible preferred stock | $ (205) | ||||
Ending balance (in shares) at Jan. 31, 2018 | 152,665,804 | ||||
Ending balance at Jan. 31, 2018 | $ 159,552 | ||||
Beginning balance at Jan. 31, 2017 | (28,838) | $ 77 | $ 0 | $ 0 | $ (28,915) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Repurchase of Series A convertible preferred stock | (4,405) | (4,405) | |||
Issuance of common stock upon exercise of stock options (in shares) | 2,958,742 | ||||
Issuance of common stock upon exercise of stock options | 596 | $ 3 | 593 | ||
Stock-based compensation expense | 10,329 | 10,329 | |||
Other comprehensive income (loss) | (531) | (531) | |||
Net income (loss) | (3,822) | (3,822) | |||
Ending balance at Jan. 31, 2018 | $ (26,671) | $ 80 | 6,517 | (531) | (32,737) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares outstanding (in shares) | 82,609,638 | ||||
Ending balance (in shares) at Jan. 31, 2019 | 152,665,804 | ||||
Ending balance at Jan. 31, 2019 | $ 159,552 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options (in shares) | 7,717,797 | ||||
Issuance of common stock upon exercise of stock options | 2,311 | $ 9 | 2,302 | ||
Stock-based compensation expense | 8,941 | 8,941 | |||
Other comprehensive income (loss) | 396 | 396 | |||
Net income (loss) | 7,584 | 7,584 | |||
Ending balance at Jan. 31, 2019 | (7,439) | $ 89 | 17,760 | (135) | (25,153) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares outstanding (in shares) | 90,327,435 | ||||
Conversion of convertible preferred stock to common stock upon initial public offering | $ (159,552) | ||||
Ending balance (in shares) at Jan. 31, 2020 | 0 | ||||
Ending balance at Jan. 31, 2020 | $ 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options (in shares) | 19,003,652 | ||||
Conversion of convertible preferred stock to common stock upon initial public offering (in shares) | 152,665,804 | ||||
Conversion of convertible preferred stock to common stock upon initial public offering | $ 159,552 | $ 153 | 159,399 | ||
Conversion of convertible preferred stock to common stock upon initial public offering (in shares) | 426,223 | ||||
Conversion of convertible preferred stock to common stock upon initial public offering | 15,344 | 15,344 | |||
Issuance of common stock upon initial public offering and private placement net of underwriting discounts and commissions and other offering costs (in shares) | 15,819,646 | ||||
Issuance of common stock upon initial public offering and private placement, net of underwriting discounts and commissions and other offering costs | 541,499 | $ 16 | 541,483 | ||
Issuance of common stock upon exercise of stock options, net of repurchases (in shares) | 18,501,767 | ||||
Issuance of common stock upon exercise of stock options, net of repurchases and release of restricted stock units | 9,771 | $ 19 | 9,752 | ||
Issuance of common stock reserved for charitable donation (in shares) | 500,000 | ||||
Issuance of common stock reserved for charitable donations | 0 | ||||
Proceeds from issuance of common stock fro employee stock purchase plan (in shares) | 490,268 | ||||
Issuance of common stock for employee stock purchase plan | 15,482 | 15,482 | |||
Stock-based compensation expense | 73,485 | 73,485 | |||
Other comprehensive income (loss) | 944 | 944 | |||
Net income (loss) | 25,305 | 25,305 | |||
Ending balance at Jan. 31, 2020 | $ 833,943 | $ 277 | $ 832,705 | $ 809 | $ 152 |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Conversion of convertible preferred stock to common stock upon initial public offering (in shares) | (152,665,804) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares outstanding (in shares) | 278,731,143 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 25,305 | $ 7,584 | $ (3,822) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Stock-based compensation expense | 73,109 | 8,941 | 10,329 |
Amortization of deferred contract acquisition costs | 37,101 | 20,839 | 9,023 |
Depreciation and amortization | 16,449 | 7,008 | 2,786 |
Non-cash operating lease cost | 6,885 | 0 | 0 |
Provision for accounts receivable allowances | 6,370 | 1,953 | 727 |
Other | (1,068) | 37 | 95 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (64,715) | (41,040) | (16,560) |
Prepaid expenses and other assets | (24,805) | (7,971) | (3,443) |
Deferred contract acquisition costs | (72,714) | (45,769) | (27,470) |
Accounts payable | (2,030) | 832 | 1,254 |
Accrued expenses and other liabilities | 51,179 | 27,407 | 15,011 |
Deferred revenue | 106,286 | 71,511 | 31,496 |
Operating lease liabilities, net | (5,460) | 0 | 0 |
Net cash provided by operating activities | 151,892 | 51,332 | 19,426 |
Cash flows from investing activities: | |||
Purchases of marketable securities | (800,228) | (78,016) | (143,329) |
Maturities of marketable securities | 343,554 | 68,747 | 39,710 |
Purchases of property and equipment | (38,084) | (28,432) | (9,738) |
Purchase of equity investment | (3,000) | 0 | 0 |
Loans to employees | (1,569) | 0 | 0 |
Purchases of intangible assets | (141) | (2,018) | 0 |
Net cash used in investing activities | (499,468) | (39,719) | (113,357) |
Cash flows from financing activities: | |||
Proceeds from initial public offering and private placement, net of underwriting discounts and commissions and other offering costs | 542,492 | (939) | 0 |
Proceeds from international employee stock sales to be remitted to employees and tax authorities | 48,547 | 0 | 0 |
Proceeds from issuance of common stock for employee stock purchase plan | 15,482 | 0 | 0 |
Proceeds from exercise of stock options, net of repurchases | 9,169 | 3,565 | 733 |
Proceeds from issuance of convertible promissory notes and derivatives | 0 | 15,000 | 0 |
Principal payments on capital lease obligations | 0 | ||
Principal payments on capital lease obligations | (92) | (120) | |
Repurchase of convertible preferred stock | 0 | 0 | (4,610) |
Net cash provided by (used in) financing activities | 615,690 | 17,534 | (3,997) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 268,114 | 29,147 | (97,928) |
Cash, cash equivalents, and restricted cash—beginning of period | 65,968 | 36,821 | 134,749 |
Cash, cash equivalents, and restricted cash—end of period | 334,082 | 65,968 | 36,821 |
Supplemental disclosures of cash flow information | |||
Cash paid for income taxes | 1,070 | 214 | 133 |
Supplemental disclosures of non-cash investing and financing information | |||
Purchase of equipment during the period included in accounts payable and accrued expenses | 1,422 | 3,284 | 392 |
Purchase of property and equipment under capital lease | 0 | 0 | 212 |
Vesting of early exercised stock options and restricted stock awards | 725 | 277 | 175 |
Deferred offering costs, accrued but not paid | 0 | 1,490 | 0 |
Reconciliation of cash, cash equivalents, and restricted cash within the consolidated balance sheets to the amounts shown in the consolidated statements of cash flows above: | |||
Cash and cash equivalents | 283,134 | 63,624 | 36,146 |
Total cash, cash equivalents, and restricted cash | 334,082 | 36,821 | 36,821 |
Class B Common Stock | |||
Cash flows from operating activities: | |||
Net income (loss) | 19,855 | 7,584 | (3,822) |
Supplemental disclosures of non-cash investing and financing information | |||
Conversion of convertible preferred stock to Class B common stock upon initial public offering | 159,552 | 0 | 0 |
Class A Common Stock | |||
Cash flows from operating activities: | |||
Net income (loss) | 5,450 | 0 | 0 |
Supplemental disclosures of non-cash investing and financing information | |||
Conversion of debt to Class A common stock | $ 15,344 | $ 0 | $ 0 |
Summary of Business and Signifi
Summary of Business and Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Business and Significant Accounting Policies | Summary of Business and Significant Accounting Policies Description of Business Zoom Video Communications, Inc. and its subsidiaries (together, “Zoom,” the “Company,” “we,” “us,” or “our”) provide a video-first, unified communications platform. Our platform combines video, audio, phone, screen sharing, and chat functionalities. We were incorporated in the state of Delaware in April 2011 and are headquartered in San Jose, California. Fiscal Year Our fiscal year ends on January 31. References to fiscal year 2020, for example, refer to the fiscal year ended January 31, 2020. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with GAAP and include the accounts of Zoom Video Communications, Inc., its subsidiaries, and a variable interest entity (“VIE”) for which we are the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. Variable Interest Entities In the normal course of business, we may enter into relationships with entities that are deemed to be VIEs. A VIE is a legal entity that satisfies any of the following characteristics: (a) the legal entity does not have sufficient equity investment at risk; (b) the equity investors at risk, as a group, lack the characteristics of a controlling financial interest; or (c) the legal entity is structured with disproportionate voting rights, and substantially all of the activities are conducted on behalf of an investor with disproportionately few voting rights. We consolidate a VIE for which we are the primary beneficiary. The primary beneficiary of a VIE is the party, if any, with both of the following characteristics: (a) the power to direct the activities that most significantly affect the VIE’s economic performance (the “power criterion”) and (b) the obligation to absorb losses or the right to receive residual returns of the VIE that could potentially be significant to the VIE (the “economics criterion”). During fiscal year 2020, a VIE (the “China VIE”) was established and holds the license required to sell our products and services in the People’s Republic of China. However, we are the exclusive provider of technical and consulting services to the China VIE and own all copyrights, patents, technical secrets, trade secrets, and other intellectual properties related to and arising from the operations of the China VIE. Any creditors of the China VIE do not have recourse to our general credit. Through the China VIE agreements, we have the unilateral power to vote all of the shares of the China VIE, set its corporate policies and guidance, and designate the members of its board of directors and management team. We are also entitled to receive all dividends of the China VIE. Because both the power and economics criteria are met, we are the primary beneficiary of and therefore have a controlling financial interest in the China VIE. Initial Public Offering and Private Placement On April 23, 2019, we completed our IPO, in which we issued and sold 9,911,434 shares of our Class A common stock at $36.00 per share, resulting in net proceeds of $340.8 million after deducting underwriting discounts and commissions. On April 18, 2019, the underwriters exercised their option to purchase an additional 3,130,435 shares of our Class A common stock at $36.00 per share. This transaction closed on April 23, 2019, resulting in additional proceeds of $107.1 million, net of underwriters’ discounts and commissions. In connection with the IPO: • all of the shares of convertible preferred stock outstanding automatically converted into an aggregate of 152,665,804 shares of Class B common stock; • outstanding convertible promissory notes and accrued interest automatically converted into 426,223 shares of Class A common stock based on the IPO price of $36.00 per share; and • Salesforce Ventures LLC purchased 2,777,777 shares of Class A common stock from us at $36.00 per share in a concurrent private placement. We received aggregate proceeds of $100.0 million and did not pay any underwriting discounts or commissions with respect to the shares of Class A common stock that were sold in this private placement. Deferred offering costs consist primarily of accounting, legal, and other fees related to our IPO. Prior to the IPO, all deferred offering costs were capitalized in other assets, noncurrent in the consolidated balance sheets. After the IPO, $6.4 million of deferred offering costs were reclassified into stockholders’ equity (deficit) as a reduction of the IPO proceeds in the consolidated balance sheets. We capitalized $2.4 million of deferred offering costs within other assets, noncurrent in the consolidated balance sheet as of January 31, 2019, which were reclassified into additional paid-in capital upon the completion of the IPO. Stock Split In January 2018, our board of directors approved the amendment and restatement of our certificate of incorporation to effect a four-for-one forward stock split of our common stock and convertible preferred stock (collectively, the “Capital Stock”), which became effective on January 3, 2018. Accordingly, (i) each share of outstanding Capital Stock was split into four shares of Capital Stock of the same class and series, as applicable; (ii) the number of shares of Capital Stock issuable upon the exercise of each outstanding option to purchase Capital Stock was proportionately increased on a four-for-one basis; (iii) the exercise price of each outstanding option to purchase Capital Stock was proportionately reduced on a four-for-one basis; (iv) the authorized number of each class and series of Capital Stock was proportionally increased in accordance with the four-for-one stock split; and (v) the par value of each class of Capital Stock was not adjusted as result of this stock split. All of the share numbers, share prices, and exercise prices have been adjusted retroactively within these consolidated financial statements to reflect this stock split. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant items subject to such estimates and assumptions include, but are not limited to, the estimated expected benefit period for deferred contract acquisition costs, the accounts receivable allowances, the useful lives of long-lived assets, the incremental borrowing rate for operating leases, the valuation of derivative liabilities, the value of common stock and other assumptions used to measure stock-based compensation expense, sales and other tax liabilities, and the valuation of deferred income tax assets and uncertain tax positions. Actual results could differ from those estimates. Concentration of Risks Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, restricted cash, and accounts receivable. We maintain our cash, cash equivalents, marketable securities, and restricted cash with high-quality financial institutions with investment-grade ratings. A majority of the cash balances are with U.S. banks and are insured to the extent defined by the Federal Deposit Insurance Corporation. No single customer accounted for more than 10% of accounts receivable at January 31, 2020 or 2019. No single customer accounted for 10% or more of total revenue during the fiscal years ended January 31, 2020, 2019, or 2018. Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents consist of cash in banks and highly liquid investments, primarily money market funds, purchased with an original maturity of three months or less. Historically, restricted cash consisted of certificates of deposit collateralizing our operating leases and corporate credit cards, and was included in prepaid expenses and other current assets and other assets, noncurrent in the consolidated balance sheets. In the third quarter of fiscal year 2020, we received $48.5 million of cash from proceeds on international employees’ sales of our common stock. The amount is held in our bank account until it is remitted to the employees and the tax authorities. Due to the restrictions on the use of the funds in the bank account, we have classified the amount as restricted cash included in prepaid expenses and other current assets, and a corresponding amount is included in accrued expenses and other current liabilities in the consolidated balance sheets. Marketable Securities Marketable securities consist primarily of high-grade commercial paper, corporate bonds, agency bonds, corporate debt securities, U.S. government agency securities, and treasury bills. We classify our marketable securities as available-for-sale at the time of purchase and reevaluate such classification at each balance sheet date. We may sell these securities at any time for use in current operations even if they have not yet reached maturity. As a result, we classify our securities, including those with maturities beyond 12 months, as current assets in the consolidated balance sheets. We carry these securities at fair value and record unrealized gains and losses in accumulated other comprehensive income (loss), which is reflected as a component of stockholders’ equity (deficit). We evaluate our securities to assess whether those with unrealized loss positions are other than temporarily impaired. We consider impairments to be other than temporary if they are related to deterioration in credit risk or if it is likely we will sell the securities before the recovery of their cost basis. Realized gains and losses from the sale of marketable securities and declines in value deemed to be other than temporary are determined based on the specific identification method. Realized gains and losses are reported in interest income and other, net in the consolidated statements of operations. Equity Investment In the third quarter of fiscal year 2020, we made a $3.0 million strategic investment in a private limited liability company in the business of designing and developing video communications hardware. We do not have a controlling financial interest in the investee nor the ability to exercise significant influence over the operating and financial policies of the investee. The investment is included within other assets, noncurrent in the consolidated balance sheets. Dividend income, unrealized and realized holding gains or losses, and impairment charges would be reported in interest income and other, net in the consolidated statements of operations. The maximum loss we could incur for this investment is its carrying value. We have elected to measure this investment, which does not have a readily determinable fair value, at its cost minus impairment, if any. If we identify observable price changes in orderly transactions for the identical or a similar investment of the same issuer, we will measure the equity security at fair value as of the date that the observable transaction occurred (i.e., using the measurement alternative). At each reporting period, we perform a qualitative assessment considering impairment indicators to evaluate whether the investment is impaired. If this qualitative assessment indicates that the investment is impaired and the fair value of the investment is less than its carrying amount, the investment would be written down to its fair value. As of January 31, 2020, the carrying amount of this investment is $3.0 million. We have not recognized any impairments nor any downward or upward measurement alternative adjustments to this carrying amount. Fair Value Measurements Fair value is defined as the exchange price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We measure financial assets and liabilities at fair value at each reporting period using a fair value hierarchy, which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Financial instruments consist of cash equivalents, restricted cash, marketable securities, accounts receivable, accounts payable, convertible promissory notes, and derivative liabilities. Cash equivalents, restricted cash, marketable securities, and derivative liabilities are stated at fair value on a recurring basis. Accounts receivable and accounts payable are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment date. The principal amounts of the convertible promissory notes approximate fair value as the stated interest rates approximate market rates currently available to us. Accounts Receivable Accounts receivable are recorded at the invoiced amount and amounts for which revenue has been recognized but not invoiced, net of accounts receivable allowances. The accounts receivable allowances are based on our assessment of the collectability of accounts. We regularly review the adequacy of the accounts receivable allowances based on a combination of factors. In establishing any required allowance, management considers historical losses adjusted to take into account current market conditions and our customers’ financial condition, the amount of any receivables in dispute, the current receivables aging, and the current payment terms. Accounts receivable deemed uncollectible are charged against the accounts receivable allowances when identified. Property and Equipment, Net Property and equipment, net, are stated at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets, determined to be three Software Development Costs We capitalize certain development costs related to our video-first communications platform during the application development stage. Costs incurred in the preliminary stages of development are analogous to research and development activities and are expensed as incurred. The preliminary stage includes activities such as conceptual formulation of alternatives, evaluation of alternatives, determination of existence of needed technology, and final selection of alternatives. Once the application development stage is reached, internal and external costs are capitalized until the software is substantially complete and ready for its intended use. Capitalized software development costs are recorded as part of property and equipment, net. Maintenance, minor upgrades, and training costs are expensed as incurred. Capitalized software development costs are amortized on a straight-line basis over the software’s estimated useful life, which is generally three years, and are recorded in cost of revenue in the consolidated statements of operations. We have capitalized $3.1 million, $2.5 million, and $0.8 million of software development costs during the fiscal years ended January 31, 2020, 2019, and 2018, respectively. Leases All lease arrangements are generally recognized at lease commencement. Operating lease right-of-use (“ROU”) assets and operating lease liabilities are recognized at commencement. For short-term leases (an initial term of 12 months or less), an ROU asset and corresponding lease liability are not recorded and we record rent expense in our consolidated statements of operations on a straight-line basis over the lease term and record variable lease payments as incurred. ROU assets represent our right to use an underlying asset during the reasonably certain lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of fixed payments not yet paid over the lease term. We use our incremental borrowing rate based on the information available at the commencement date in determining the lease liabilities as our leases generally do not provide an implicit rate. Our incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, in an economic environment where the leased asset is located. ROU assets also include any initial direct costs incurred and any lease payments made at or before the lease commencement date, less lease incentives received. We reassess the lease term if and when a significant event or change in circumstances occurs within our control. We currently do not have any finance leases. Impairment of Long-Lived Assets We evaluate long-lived assets or asset groups for impairment whenever events indicate that the carrying value of an asset or asset group may not be recoverable based on expected future cash flows attributable to that asset or asset group. Recoverability of assets held and used is measured by comparing the carrying amount of an asset or an asset group to estimated undiscounted future net cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset or asset group exceeds estimated undiscounted future cash flows, then an impairment charge would be recognized based on the excess of the carrying amount of the asset or asset group over its fair value. Assets to be disposed of are reported at the lower of their carrying amount or fair value, less costs to sell. There were no impairment charges recognized related to long-lived assets during the fiscal years ended January 31, 2020, 2019, or 2018. Revenue Recognition We derive our revenue from subscription agreements with customers for access to our video-first communications platform and services. Revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration that we expect to receive in exchange for these services. We determine revenue recognition through the following steps: 1. Identification of the contract, or contracts, with the customer We determine a contract with a customer to exist when the contract is approved, each party’s rights regarding the services to be transferred can be identified, the payment terms for the services can be identified, the customer has the ability and intent to pay, and the contract has commercial substance. At contract inception, we will evaluate whether two or more contracts should be combined and accounted for as a single contract and whether the combined or single contract includes more than one performance obligation. We apply judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, credit and financial information pertaining to the customer. 2. Identification of the performance obligations in the contract Performance obligations committed in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the services and the products is separately identifiable from other promises in the contract. Our performance obligations generally consist of access to our video-first communications platform and related support services, which is considered one performance obligation. Our customers do not have the ability to take possession of our software, and through access to our platform, we provide a series of distinct software-based services that are satisfied over the term of the subscription. We also provide services, which include professional services, consulting services, and online event hosting, which are generally considered distinct from the access to our video-first communications platform. 3. Determination of the transaction price The transaction price is determined based on the consideration to which we expect to be entitled in exchange for transferring services to the customer. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue recognized under the contract will not occur. None of our contracts contain a significant financing component. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental entities (e.g., sales and other indirect taxes). Our video-first communications platform and related support services are typically warranted to perform in a professional manner that will comply with the terms of the subscription agreements. In addition, we include service-level commitments to our customers warranting certain levels of uptime reliability and performance and permitting those customers to receive credits in the event that we fail to meet those service levels. These credits represent a form of variable consideration. Historically, we have not experienced any significant incidents affecting the defined levels of reliability and performance as required by the subscription agreements. We have not provided any material refunds related to these agreements in the consolidated financial statements during the periods presented. 4. Allocation of the transaction price to the performance obligations in the contract Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on each performance obligation’s relative standalone selling price. As noted above, access to our video-first communications platform and related support services are considered one performance obligation in the context of the contract and accordingly the transaction price is allocated to this single performance obligation. 5. Recognition of the revenue when, or as, a performance obligation is satisfied Revenue is recognized at the time the related performance obligation is satisfied by transferring the control of the promised service to a customer. Revenue is recognized in an amount that reflects the consideration that we expect to receive in exchange for those services. Fees for access to our video-first communications platform and related support services are subscription revenue and are considered one performance obligation, and the related revenue is recognized ratably over the subscription period as we satisfy the performance obligation. Professional services are time-based arrangements and revenue is recognized as these services are performed. Fees for services represent less than 2% of total revenue during the periods presented. Cost of Revenue Cost of revenue primarily consists of costs related to hosting our video-first communications platform and providing general operating support services to our customers. These costs are composed of co-located data center costs, third-party cloud hosting costs, integrated third-party PSTN services, personnel-related expenses, amortization of capitalized software development costs, and allocated overhead costs. Indirect overhead associated with corporate facilities and related depreciation is allocated to cost of revenue and operating expenses based on applicable headcount. Research and Development Research and development costs include personnel-related expenses associated with our engineering personnel and consultants responsible for the design, development, and testing of our video-first communications platform, depreciation of equipment used in research and development, and allocated overhead costs. Research and development costs are expensed as incurred. Advertising Costs Advertising costs are expensed as incurred in sales and marketing expense and amounted to $42.0 million, $36.1 million, and $17.1 million for the fiscal years ended January 31, 2020, 2019, and 2018, respectively. Stock-Based Compensation Stock-based compensation expense related to stock awards (including stock options, restricted stock awards (“RSAs”), RSUs, and ESPP) is measured based on the fair value of the awards granted and recognized as an expense on a straight-line basis over the requisite service period for stock options, RSAs and RSUs, and over the offering period for the purchase rights issued under the ESPP. The fair value of each option and ESPP award is estimated on the grant date using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of highly subjective assumptions, including the fair value of the underlying common stock, the expected term of the award, the expected volatility of the price of our common stock, risk-free interest rates, and the expected dividend yield of our common stock. The fair value of each RSA and RSU award is based on the fair value of the underlying common stock as of the grant date. The assumptions used to determine the fair value of the stock awards represent management’s best estimates. These estimates involve inherent uncertainties and the application of management’s judgment. We account for forfeitures as they occur instead of estimating the number of awards expected to be forfeited. Foreign Currency The functional currency of our foreign subsidiaries is the U.S. dollar. Accordingly, monetary assets and liabilities of our foreign subsidiaries are remeasured into U.S. dollars at the exchange rates in effect at the reporting date, non-monetary assets and liabilities are remeasured at historical rates, and revenue and expenses are remeasured at average exchange rates in effect during each reporting period. Foreign currency related gains and losses have been immaterial during the periods presented. Income Taxes We use the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and the tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. We must then assess the likelihood that the resulting deferred tax assets will be realized. A valuation allowance is provided when it is more likely than not that a deferred tax asset will not be fully realized. Management believes it is more likely than not that deferred tax assets in the United States and the U.K. will not be realized and, accordingly, a valuation allowance has been established on such deferred tax assets. We recognize benefits of uncertain tax positions if it is more likely than not that such positions will be sustained upon examination based solely on their technical merits at the largest amount of benefit that is more likely than not to be realized upon the ultimate settlement. Our policy is to recognize interest and penalties related to the underpayment of income taxes as a component of income tax expense or benefit. The calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of GAAP and U.S. and foreign tax laws. The resolution of these uncertain tax positions in a manner inconsistent with management’s expectations could have a material impact on our consolidated financial statements. Net Income (Loss) Per Share Attributable to Common Stockholders We calculate our net income (loss) per share attributable to Class A and Class B common stock using the two-class method required for companies with participating securities. We consider our convertible preferred stock and unvested common stock, which includes early exercised stock options and RSAs, to be participating securities as holders of such securities have non-forfeitable dividend rights in the event of our declaration of a dividend for shares of common stock. During the periods when we are in a net loss position, the net loss attributable to common stockholders was not allocated to the convertible preferred stock and unvested common stock under the two-class method as these securities do not have a contractual obligation to share in our losses. Distributed and undistributed earnings allocated to participating securities are subtracted from net income (loss) in determining net income (loss) attributable to common stockholders. Basic net income (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of our Class A and Class B common stock outstanding. The diluted net income per share attributable to common stockholders is computed by giving effect to all dilutive securities. Diluted net income per share attributable to common stockholders is computed by dividing the resulting net income attributable to common stockholders by the weighted-average number of fully diluted common shares outstanding. During the periods when there is a net loss attributable to common stockholders, potentially dilutive common stock equivalents have been excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect is anti-dilutive. Segment Information We operate in one operating segment. Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker, who is our Chief Executive Officer (“CEO”), in deciding how to allocate resources and assessing performance. Our chief operating decision maker allocates resources and assesses performance based upon consolidated financial information. Revenue by geographical region can be found in the revenue recognition disclosures in Note 2 below. The following table presents our property and equipment, net of depreciation and amortization, by geographic region: As of January 31, 2020 2019 (in thousands) Americas $ 48,519 $ 26,048 APAC 7,464 8,928 EMEA 1,155 2,299 Total property and equipment, net $ 57,138 $ 37,275 Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which replaces the existing incurred loss impairment model with an expected credit loss model and requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected. The guidance will be effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. We do not expect the adoption to have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-use Software (subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract . The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The guidance will be effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. We are currently evaluating whether the adoption of this standard will have a material impact on our consolidated financial statements. Recently Adopted |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Jan. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregation of Revenue The following table summarizes revenue by region based on the billing address of customers: Year Ended January 31, 2020 2019 2018 Amount Percentage of Amount Percentage of Amount Percentage of (in thousands, except percentages) Americas $ 500,622 81 % $ 270,132 82 % $ 125,428 83 % APAC 51,152 8 27,720 8 13,652 9 EMEA 70,884 11 32,665 10 12,398 8 Total $ 622,658 100 % $ 330,517 100 % $ 151,478 100 % Contract Balances We receive payments from customers based on a billing schedule as established in our customer contracts. Accounts receivable are recorded when we contractually have the right to consideration. In some arrangements, a right to consideration for our performance under the customer contract may occur before invoicing to the customer, resulting in an unbilled accounts receivable. The amount of unbilled accounts receivable included within accounts receivable, net of allowances in the consolidated balance sheets was $12.5 million and $7.2 million as of January 31, 2020 and 2019, respectively. Contract liabilities consist of deferred revenue. Revenue is deferred when we have the right to invoice in advance of performance under a customer contract. The current portion of deferred revenue balances is recognized over the next 12 months. The amount of revenue recognized during the fiscal years ended January 31, 2020, 2019, and 2018 that was included in deferred revenue at the beginning of each period was $119.1 million, $50.3 million, and $21.3 million, respectively. Remaining Performance Obligation The terms of our subscription agreements are monthly, annual, and multiyear and we may bill for the full term in advance or on an annual or monthly basis, depending on the billing terms with customers. As of January 31, 2020, the aggregate amount of the transaction price allocated to our remaining performance obligations was $604.1 million, which consists of both billed consideration in the amount of $230.5 million and unbilled consideration in the amount of $373.6 million that we expect to recognize as revenue. We expect to recognize 62% of our remaining performance obligations as revenue over the next 12 months and the remainder thereafter. Cost to Obtain a Contract We capitalize sales commissions and associated payroll taxes paid to internal sales personnel that are incremental to the acquisition of customer contracts. These costs are recorded as deferred contract acquisition costs on the consolidated balance sheets. We determine whether costs should be deferred based on our sales compensation plans and if the commissions are incremental and would not have occurred absent the customer contract. Sales commissions paid upon the initial acquisition of a customer contract are amortized over an estimated period of benefit of three years, which is typically greater than the contractual terms of the customer contracts. We do not pay sales commissions upon contract renewal. Amortization is recognized on a straight-line basis commensurate with the pattern of revenue recognition. We determine the period of benefit for commissions paid for the acquisition of the initial customer contract by taking into consideration the initial estimated customer life and the technological life of our video-first communications platform and related significant features. Amortization of deferred contract acquisition costs is included in sales and marketing expense in the consolidated statements of operations. We periodically review these deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit. There were no impairment losses recorded during the periods presented. The following table represents a rollforward of deferred contract acquisition costs: Year Ended January 31, 2020 2019 (in thousands) Beginning balance $ 55,516 $ 30,586 Additions to deferred contract acquisition costs 72,715 45,769 Amortization of deferred contract acquisition costs (37,101) (20,839) Ending balance $ 91,130 $ 55,516 Deferred contract acquisition costs, current (to be amortized in next 12 months) $ 44,885 $ 26,453 Deferred contract acquisition costs, noncurrent 46,245 29,063 Total deferred contract acquisition costs $ 91,130 $ 55,516 |
Marketable Securities
Marketable Securities | 12 Months Ended |
Jan. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Marketable Securities As of January 31, 2020 and 2019, our marketable securities consisted of the following: As of January 31, 2020 Amortized Gross Gross Estimated (in thousands) Commercial paper $ 37,894 $ — $ — $ 37,894 Agency bonds 141,157 49 (43) 141,163 Corporate and other debt securities 320,407 775 (16) 321,166 U.S. government agency securities 71,794 45 (2) 71,837 Marketable securities $ 571,252 $ 869 $ (61) $ 572,060 As of January 31, 2019 Amortized Gross Gross Estimated (in thousands) Commercial paper $ 1,243 $ — $ — $ 1,243 Corporate bonds 53,267 — (53) 53,214 Agency bonds 32,675 — (71) 32,604 U.S. government agency securities 24,028 — (11) 24,017 Treasury bills 1,699 — — 1,699 Marketable securities $ 112,912 $ — $ (135) $ 112,777 We review the individual securities that have unrealized losses on a regular basis to evaluate whether or not any security has experienced an other-than-temporary decline in fair value. We evaluate, among other factors, whether we have the intention to sell any of these marketable securities and whether it is more likely than not that we will be required to sell any of them before recovery of the amortized cost basis. Based on the available evidence, we concluded that the gross unrealized losses on the marketable securities as of January 31, 2020 and 2019, are temporary in nature. There were no material realized gains or losses from available-for-sale securities that were reclassified out of accumulated other comprehensive income (loss) for the fiscal years ended January 31, 2020, 2019, and 2018. The following table presents the contractual maturities of our marketable securities as of January 31, 2020 and 2019: As of January 31, 2020 2019 (in thousands) Less than one year $ 315,900 $ 85,077 Due in one to five years 256,160 27,700 Total $ 572,060 $ 112,777 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables present information about our financial instruments that are measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value: As of January 31, 2020 Fair Value Level 1 Level 2 Level 3 (in thousands) Financial Assets: Money market funds $ 96,486 $ 96,486 $ — $ — Commercial paper 4,994 — 4,994 — Agency bonds 9,999 — 9,999 — Cash equivalents 111,479 96,486 14,993 — Commercial paper 37,894 — 37,894 — Agency bonds 141,163 — 141,163 — Corporate and other debt securities 321,166 — 321,166 — U.S. government agency securities 71,837 — 71,837 — Marketable securities 572,060 — 572,060 — Certificate of deposit included in prepaid expenses and other current assets 100 — 100 — Certificates of deposit included in other assets, noncurrent 2,301 — 2,301 — Total financial assets $ 685,940 $ 96,486 $ 589,454 $ — As of January 31, 2019 Fair Value Level 1 Level 2 Level 3 (in thousands) Financial Assets: Money market funds $ 78 $ 78 $ — $ — Cash equivalents 78 78 — — Commercial paper 1,243 — 1,243 — Corporate bonds 53,214 — 53,214 — Agency bonds 32,604 — 32,604 — U.S. government agency securities 24,017 — 24,017 — Treasury bills 1,699 — 1,699 — Marketable securities 112,777 — 112,777 — Certificate of deposit included in prepaid expenses and other current assets 200 — 200 — Certificates of deposit included in other assets, noncurrent 2,144 — 2,144 — Total financial assets $ 115,199 $ 78 $ 115,121 $ — Financial Liabilities: Convertible promissory notes – derivative liabilities included in other liabilities, noncurrent $ 163 $ — $ — $ 163 Total financial liabilities $ 163 $ — $ — $ 163 |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Jan. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | Balance Sheet Components Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: As of January 31, 2020 2019 (in thousands) Restricted cash from international employee stock sales $ 48,547 $ — Prepaid expenses 22,320 9,263 Other 4,141 989 Prepaid expenses and other current assets $ 75,008 $ 10,252 Property and Equipment, Net Property and equipment consisted of the following: As of January 31, 2020 2019 (in thousands) Computer and office equipment $ 51,375 $ 32,515 Leasehold improvements 18,215 7,660 Software 10,855 6,575 Furniture and fixtures 3,949 1,993 Property and equipment, gross 84,394 48,743 Less: accumulated depreciation and amortization (27,256) (11,468) Property and equipment, net $ 57,138 $ 37,275 Depreciation and amortization expense was $16.4 million, $7.0 million, and $2.8 million for the fiscal years ended January 31, 2020, 2019, and 2018, respectively. Other Assets, Noncurrent Other assets, noncurrent consisted of the following: As of January 31, 2020 2019 (in thousands) Accounts receivable, noncurrent $ 9,011 $ 3,264 Equity investment 3,000 — Other 10,321 8,244 Other assets, noncurrent $ 22,332 $ 11,508 Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: As of January 31, 2020 2019 (in thousands) Liabilities to employees and tax authorities from international employee stock sales $ 49,287 $ — Accrued compensation and benefits 36,732 12,004 Accrued expenses 17,475 13,596 Operating lease liabilities, current 7,675 — Other 11,523 6,656 Accrued expenses and other current liabilities $ 122,692 $ 32,256 Other Liabilities, Noncurrent Other liabilities, noncurrent consisted of the following: As of January 31, 2020 2019 (in thousands) Sales and other tax liabilities $ 33,957 $ 20,817 Convertible promissory notes, net of debt discount — 14,858 Other 2,329 3,785 Other liabilities, noncurrent $ 36,286 $ 39,460 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Non-cancelable Purchase Obligations In the normal course of business, we enter into non-cancelable purchase commitments with various parties to purchase primarily software-based services. As of January 31, 2020, we had outstanding non-cancelable purchase obligations with a term of 12 months or longer of $86.1 million. Indemnifications and Contingency Our agreements with certain larger customers include certain provisions for indemnifying customers against liabilities if our services infringe a third party’s intellectual property rights. It is not possible to determine the maximum potential amount under these indemnification obligations due to the limited history of prior indemnification claims and the unique facts and circumstances that may be involved in each particular agreement. To date, we have not incurred any material costs as a result of such provisions and have not accrued any liabilities related to such obligations in our consolidated financial statements. In addition, we have indemnification agreements with our directors and our executive officers that require us, among other things, to indemnify our directors and executive officers for costs associated with any fees, expenses, judgments, fines, and settlement amounts incurred by any of those persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by us, arising out of that person’s services as our director or officer or that person’s services provided to any other company or enterprise at our request. We maintain director and officer insurance coverage that may enable us to recover a portion of any future indemnification amounts paid. To date, there have been no claims under any of our directors’ and executive officers’ indemnification provisions. Sales and Other Tax Liabilities We conduct operations in many tax jurisdictions. In many jurisdictions, non-income-based taxes, such as sales and use tax and other indirect taxes, are assessed on our operations. Although we are diligent in collecting and remitting such taxes, there is uncertainty as to what constitutes sufficient presence for a jurisdiction to levy taxes, fees, and surcharges for sales made over the Internet. As of January 31, 2020 and 2019, we recorded sales and other tax liabilities of $37.7 million and $22.0 million, respectively, of which $3.7 million and $1.2 million are included in accrued expenses and other current liabilities, respectively, and $34.0 million and $20.8 million are included in other liabilities, noncurrent, respectively, on our consolidated balance sheets, based on our best estimate of the probable liability for the loss contingency incurred as of those dates. Our estimate of a probable outcome under the loss contingency is based on analysis of our sales and marketing activities, revenue subject to sales tax, and applicable regulations in applicable jurisdictions in each period. No significant adjustments to the sales and other tax liabilities have been recognized in the accompanying consolidated financial statements for changes to the assumptions underlying the estimate; however, changes in our assumptions may occur in the future as we obtain new information which can result in adjustments to the recorded liability. Other Contingencies Our platform and associated products are subject to various restrictions under U.S. export control and sanctions laws and regulations, including the U.S. Department of Commerce’s EAR and various economic and trade sanctions regulations administered by the U.S. Treasury Department’s Office of Foreign Assets Controls (“OFAC”). The U.S. export control laws and U.S. economic sanctions laws include restrictions or prohibitions on the sale or supply of certain products and services to U.S. embargoed or sanctioned countries, governments, persons, and entities, and also require authorization for the export of certain encryption items. In addition, various countries regulate the import of certain encryption technology, including through import permitting and licensing requirements and have enacted or could enact laws that could limit our ability to distribute our platform or could limit our hosts’ ability to implement our platform in those countries. Although we take precautions to prevent our platform and associated products from being accessed or used in violation of such laws, we have inadvertently allowed our platform and associated products to be accessed or used by some customers in apparent violation of U.S. economic sanction laws. In addition, we may have inadvertently made our software products available to some customers, including users in embargoed or sanctioned countries, in apparent violation of the EAR. As a result, we have submitted initial and final voluntary self-disclosures concerning potential violations of U.S. sanctions and export control laws and regulations to the OFAC and the U.S. Department of Commerce’s BIS. In June 2019, OFAC and BIS issued us warning letters as their final enforcement responses to these potential violations, but no fines or penalties were assessed. If we are found to be in violation of U.S. economic sanctions or export control laws in the future, it could result in fines and penalties. Legal Proceedings In the ordinary course of business, we may be subject from time to time to various proceedings, lawsuits, disputes, or claims. Although we cannot predict with assurance the outcome of any litigation, we do not believe there are currently any such actions that, if resolved unfavorably, would have a material impact on our financial condition, results of operations, or cash flows. |
Convertible Promissory Notes
Convertible Promissory Notes | 12 Months Ended |
Jan. 31, 2020 | |
Debt Disclosure [Abstract] | |
Convertible Promissory Notes | Convertible Promissory Notes In October 2018, we entered into a strategic partnership with Dropbox, Inc. (“Dropbox”), a global collaboration platform company, which involves the development of technology enabling integrated workflows for users between our platform and the Dropbox platform, as well as a strategic partnership with Atlassian, Inc. (“Atlassian”), a collaboration software company, which involves the development of technology enabling integrated workflows for users between our platform and Atlassian’s Jira Ops and Jira Service Desk products. As part of the strategic partnerships, we issued unsecured three In connection with the IPO, the convertible notes and accrued interest automatically converted into 426,223 shares of Class A common stock based on the IPO price of $36.00 per share. As a result of the conversion, the related $0.2 million derivative liabilities and the $0.1 million unamortized debt discount of the convertible notes were recognized in interest income and other, net in the consolidated statements of operations during the fiscal year ended January 31, 2020. |
Operating Leases
Operating Leases | 12 Months Ended |
Jan. 31, 2020 | |
Leases [Abstract] | |
Operating Leases | Operating Leases We have entered into various operating lease agreements for office space, with remaining contractual periods of up to 10 years. Many of our leases contain one or more options to extend. As leases approach maturity, we consider various factors such as market conditions and the terms of any renewal options that may exist to determine whether we are reasonably certain to exercise the options to extend the lease. Operating lease expense for the fiscal year ended January 31, 2020 was $9.7 million, excluding short-term lease costs, variable lease costs, and sublease income, each of which was immaterial for the fiscal year ended January 31, 2020 . Supplemental balance sheet information as of January 31, 2020, related to operating leases was as follows: As of January 31, 2020 (in thousands) Reported as: Assets: Operating lease right-of-use assets $ 68,608 Liabilities: Accrued expenses and other current liabilities $ 7,675 Operating lease liabilities, noncurrent 64,792 Total operating lease liabilities $ 72,467 As of January 31, 2020, the weighted-average remaining lease term is 7.5 years and the weighted-average discount rate is 5.1%. Supplemental cash flow and other information for the fiscal year ended January 31, 2020, related to operating leases was as follows: Year Ended (in thousands) Cash payments included in the measurement of our operating lease liabilities $ 9,774 Operating lease right-of-use assets recognized in exchange for new operating lease obligations $ 34,993 As of January 31, 2020, the future minimum lease payments included in the measurement of our operating lease liabilities are as follows: As of January 31, 2020 (in thousands) Year Ending January 31, 2021 $ 11,170 2022 12,191 2023 12,177 2024 11,541 2025 11,348 Thereafter 29,383 Total operating lease payments $ 87,810 Less: imputed interest (15,343) Total operating lease liabilities $ 72,467 As previously disclosed in Note 6. “Commitments and Contingencies” to Notes to Consolidated Financial Statements in our Prospectus and under the previous lease accounting standard, future minimum payments related to operating leases as of January 31, 2019 are as follows: As of January 31, 2019 (in thousands) Year Ending January 31, 2020 $ 7,609 2021 7,837 2022 7,888 2023 7,514 2024 7,174 Thereafter 18,635 Total future minimum payments $ 56,657 Under the previous lease standard, rent expense during the fiscal years ended January 31, 2019 and 2018 was $7.2 million and $3.3 million, respectively. |
Convertible Preferred Stock, St
Convertible Preferred Stock, Stockholders’ Equity (Deficit) and Equity Incentive Plan | 12 Months Ended |
Jan. 31, 2020 | |
Equity [Abstract] | |
Convertible Preferred Stock, Stockholders’ Equity (Deficit) and Equity Incentive Plan | Convertible Preferred Stock, Stockholders’ Equity (Deficit), and Equity Incentive Plan Convertible Preferred Stock Convertible preferred stock consisted of the following as of January 31, 2019 and as of immediately prior to the automatic conversion of convertible preferred stock into common stock: As of January 31, 2019 Designated Shares Issued Aggregate (in thousands, except share data) Series A 67,083,500 61,717,700 $ 9,258 Series B 25,857,784 25,857,784 6,500 Series C 34,363,256 34,363,256 30,000 Series D 30,800,000 30,727,064 114,966 Total convertible preferred stock 158,104,540 152,665,804 $ 160,724 Upon completion of the IPO in April 2019, all shares of convertible preferred stock outstanding, totaling 152,665,804 shares, were automatically converted into an equivalent number of shares of Class B common stock on a one-to-one basis and their carrying value of $159.6 million was reclassified into stockholders’ equity. As of January 31, 2020, there were no shares of convertible preferred stock issued and outstanding. In connection with the IPO, our amended and restated certificate of incorporation became effective, which authorized the issuance of 200,000,000 shares of undesignated preferred stock with a par value of $0.001 with rights and preferences, including voting rights, designated from time to time by our board of directors. Repurchases of Convertible Preferred Stock In fiscal year 2018, we voluntarily repurchased 1,365,800 shares of Series A convertible preferred stock from certain existing investors for a total consideration of $4.6 million. The amount paid in excess of the carrying value of the Series A convertible preferred stock is considered a deemed dividend and is reflected as distributed earnings attributable to participating securities in the calculation of net loss attributable to common stockholders. The shares of Series A convertible preferred stock that we repurchased were retired immediately thereafter. Dual-Class Common Stock Structure In November 2018, we implemented a dual class common stock structure pursuant to which all the then-outstanding shares of our common stock were reclassified as Class B common stock and a new class of Class A common stock was authorized. The Class A common stock is entitled to one vote per share and the Class B common stock is entitled to 10 votes per share. The Class A and Class B common stock have the same dividend and liquidation rights. Each share of Class B common stock will automatically convert into one share of Class A common stock upon (a) any transfer of such share, except for certain permitted transfers described in our amended and restated certificate of incorporation and (b) the death of the holder of such share. In addition, each share of Class B common stock will be automatically converted into one share of Class A common stock upon the earliest of (a) the date that is six months following the death or incapacity of Eric S. Yuan (our CEO), (b) the date that is six months following the date that Mr. Yuan is no longer providing services to us or his employment is terminated for cause, (c) the date specified by the holders of a majority of the then-outstanding shares of convertible preferred stock, voting together on an as-converted basis, and the holders of a majority of the then-outstanding shares of Class B common stock, voting as a separate class, and (d) the 15-year anniversary of the closing of our IPO. In connection with the implementation of the dual-class common stock structure, each then-outstanding share of our convertible preferred stock became convertible into one share of Class B common stock, and all outstanding options to purchase shares of common stock became options to purchase an equivalent number of shares of Class B common stock. Upon the effectiveness of the amended and restated certificate of incorporation in November 2018, the number of shares of common stock that is authorized to be issued consisted of 320,000,000 shares of Class A common stock, $0.001 par value per share and 300,000,000 shares of Class B common stock, $0.001 par value per share. Class A and Class B common stock are collectively referred to as “common stock” throughout the notes to the consolidated financial statements, unless otherwise noted. Common Stock Upon the completion of the IPO in April 2019, our amended and restated certificate of incorporation became effective, which also authorized the issuance of 2,000,000,000 shares of Class A common stock, $0.001 par value per share and 300,000,000 shares of Class B common stock, $0.001 par value per share. We have the following shares of common stock reserved for future issuance: As of January 31, 2020 2019 Conversion of convertible preferred stock — 152,665,804 Stock options outstanding 16,833,009 35,064,465 RSUs outstanding 1,964,668 — ESPP purchase rights outstanding 1,323,662 — Remaining shares available for future issuance under the 2011 and 2019 plan 33,604,587 1,848,100 Remaining shares available for future issuance under the ESPP 7,186,070 — Total shares of common stock reserved 60,911,996 189,578,369 Equity Incentive Plans In 2011, we adopted the 2011 Global Share Plan (“2011 Plan”), under which officers, employees, and consultants may be granted various forms of equity incentive compensation at the discretion of the board of directors, including stock options and restricted stock awards. The awards have varying terms, but generally vest over four In April 2019, we adopted the 2019 Plan, which is a successor to and continuation of our 2011 Plan. Our 2019 Plan provides for the grant of stock options, stock appreciation rights, restricted stock awards, RSU awards, performance awards, and other forms of awards. The plan administrator determines the term of stock options granted under the 2019 Plan, up to a maximum of 10 years. The maximum number of shares of our Class A common stock that may be issued under our 2019 Plan will not exceed 58,300,889 shares of our Class A common stock, which is the sum of (1) 34,000,000 new shares, plus (2) an additional number of shares not to exceed 24,300,889, consisting of (A) shares that remain available for the issuance of awards under our 2011 Plan as of immediately prior to the time our 2019 Plan becomes effective and (B) shares of Class B common stock subject to outstanding stock options or other stock awards granted under our 2011 Plan that, on or after the 2019 Plan becomes effective, terminate, or expire prior to exercise or settlement; are not issued because the award is settled in cash; are forfeited because of the failure to vest; or are reacquired or withheld (or not issued) to satisfy a tax withholding obligation or the purchase or exercise price, if any, as such shares become available from time to time. In addition, the number of shares of our Class A common stock reserved for issuance under our 2019 Plan will automatically increase on February 1 of each calendar year, starting on February 1, 2020 through February 1, 2029, in an amount equal to (i) 5% of the total number of shares of our common stock (both Class A and Class B) outstanding on January 31 of the fiscal year before the date of each automatic increase or (ii) a lesser number of shares determined by our board of directors prior to the applicable February 1. Stock Options A summary of stock option activity under our equity incentive plan and related information is as follows: Stock Options Outstanding Weighted- Weighted- Aggregate (in thousands, except share, life and per share data) Balance as of January 31, 2019 35,064,465 $ 1.48 6.8 $ 534,572 Granted 1,576,150 $ 36.86 Exercised (19,003,652) $ 0.49 $ 767,336 Canceled/forfeited/expired (803,954) $ 5.15 Balance as of January 31, 2020 16,833,009 $ 5.73 7.6 $ 1,191,881 Vested and exercisable as of January 31, 2020 7,248,393 $ 1.78 6.8 $ 540,222 The weighted-average grant date fair value of options granted to employees during the fiscal years ended January 31, 2020, 2019, and 2018 was $25.17, $6.28, and $0.67, respectively. The intrinsic value of the options exercised, which represents the difference between the fair market value of our common stock on the date of exercise and the exercise price of each option, was $767.3 million, $60.8 million, and $2.5 million during the fiscal years ended January 31, 2020, 2019, and 2018, respectively. As of January 31, 2020, unrecognized stock-based compensation cost related to outstanding unvested stock options was $76.6 million, which is expected to be recognized over a weighted-average period of 2.8 years. The Black-Scholes assumptions used to value the employee options at the grant dates are as follows: Year Ended January 31, 2020 2019 2018 Expected term (years) 5.0 - 6.1 5.0 - 6.2 5.6 - 6.7 Expected volatility 49.9% - 53.2% 44.6% - 48.2% 47.7% - 52.0% Risk-free interest rate 1.6% - 2.5% 2.6% - 3.1% 1.8% - 2.3% Expected dividend yield — — — These assumptions and estimates were determined as follows: • Fair Value of Common Stock. Prior to our IPO, the fair value was determined by our board of directors, with input from management and valuation reports prepared by third-party valuation specialists. Stock-based compensation for financial reporting purposes is measured based on updated estimates of fair value when appropriate, such as when additional relevant information related to the estimate becomes available in a valuation report issued as of a subsequent date. After our initial public offering, the fair value of each share of underlying common stock was based on the closing price of our Class A common stock as reported on the date of the grant. • Risk-Free Interest Rate. The risk-free interest rate for the expected term of the options was based on the U.S. Treasury yield curve in effect at the time of the grant. • Expected Term. The expected term of options represents the period of time that options are expected to be outstanding. Our historical stock option exercise experience does not provide a reasonable basis upon which to estimate an expected term due to a lack of sufficient data. For stock options granted to employees, we estimate the expected term by using the simplified method. The simplified method calculates the expected term as the average of the time-to-vesting and the contractual life of the stock options. For stock options granted to nonemployees, the expected term equals the contractual term of the stock option. • Expected Volatility. As we have a short trading history for our common stock, the expected volatility was estimated by taking the average historic price volatility for industry peers, consisting of several public companies in our industry that are similar in size, stage of life cycle, or financial leverage, over a period equivalent to the expected term of the awards. • Expected Dividend Yield. We have never declared or paid any cash dividends and do not presently plan to pay cash dividends in the foreseeable future. As a result, an expected dividend yield of zero percent was used. Restricted Stock Units A summary of RSU activity under our equity incentive plan and related information is as follows: RSUs Unvested Weighted-Average Unvested as of January 31, 2019 — $ — Granted 2,048,248 $ 79.22 Vested (31,649) $ 78.23 Canceled/forfeited (51,931) $ 84.00 Unvested as of January 31, 2020 1,964,668 $ 79.11 As of January 31, 2020, unrecognized stock-based compensation expense related to outstanding unvested RSUs was $142.8 million, which is expected to be recognized over a weighted-average period of 3.6 years. 2019 Employee Stock Purchase Plan In April 2019, we adopted the 2019 ESPP, which became effective in connection with the IPO. A total of 9,000,000 shares of our Class A common stock were initially reserved for issuance under the ESPP. The number of shares of our Class A common stock reserved for issuance will automatically increase on February 1 of each calendar year, beginning on February 1, 2020 through February 1, 2029, by the lesser of (1) 1% of the total number of shares of our common stock (both Class A and Class B) outstanding on the last day of the fiscal year before the date of the automatic increase, and (2) 7,500,000 shares; provided that before the date of any such increase, our board of directors may determine that such increase will be less than the amount set forth in clauses (1) and (2). Generally, all regular employees, including executive officers, employed by us or by any of our designated affiliates, except for those holding 5% or more of the total combined voting power or value of all classes of our stock, may participate in the ESPP and may contribute, normally through payroll deductions, up to 20% of their earnings (as defined in the ESPP) for the purchase of our Class A common stock under the ESPP. Unless otherwise determined by our board of directors, Class A common stock will be purchased for the accounts of employees participating in the ESPP at a price per share equal to the lesser of (1) 85% of the fair market value of a share of our Class A common stock on the first date of an offering or (2) 85% of the fair market value of a share of our Class A common stock on the date of purchase. No employee may purchase shares under the ESPP at a rate in excess of $25,000 worth of our Class A common stock based on the fair market value per share of our Class A common stock at the beginning of an offering for each calendar year such purchase right is outstanding or 3,000 shares. The 2019 ESPP provides for, at maximum, 27 months offering periods with four offering dates, generally in June and December of each year. The first offering period began on April 18, 2019. As of January 31, 2020, 490,268 shares of our Class A common stock have been purchased under the ESPP. As of January 31, 2020, unrecognized stock-based compensation expense related to the ESPP was $55.7 million, which is expected to be recognized over a weighted-average period of 1.4 years. We estimated the fair value of ESPP purchase rights using a Black-Scholes option-pricing model with the following assumptions: Year Ended Expected term (years) 0.5 - 2.1 Expected volatility 40.3% - 56.2% Risk-free interest rate 1.5% - 2.5% Expected dividend yield — Early Exercise of Common Stock Options Our board of directors authorized certain stock option holders to exercise unvested stock options to purchase shares of common stock. Shares received from such early exercises are subject to repurchase in the event of the optionee’s termination of service, at the original issuance price, until the stock options are fully vested. As of January 31, 2020 and 2019, 466,819 and 1,261,230 shares of Class B common stock, respectively, were subject to repurchase at a weighted-average price of $2.58 and $1.41 per share, respectively. The cash proceeds received for unvested shares of common stock recorded within accrued expenses and other current liabilities in the consolidated balance sheets were $1.2 million and $1.8 million as of January 31, 2020 and 2019, respectively. Third-Party Stock Transactions In May 2017, our CEO sold 2,899,136 shares of our common stock to an existing investor at a per share price of $3.74. In the consolidated statements of operations for fiscal year 2018, due to the fact that the purchase was made by an economic interest holder and is presumptively considered compensatory under GAAP, we recognized stock-based compensation expense related to such stock sale of $8.6 million, the difference between the purchase price and the fair value of our common stock at the time of sale. Shares Reserved for Charitable Donations During the fiscal year ended January 31, 2020, our board of directors approved the issuance of 500,000 shares of Class A common stock for the sole purpose of being transferred to a nonprofit organization to be formed or identified by us at a future time. As of January 31, 2020, no shares have been transferred to a nonprofit organization. As a result, no expense has been recognized to date. Stock-Based Compensation The stock-based compensation expense by line item in the accompanying consolidated statements of operations is summarized as follows: Year Ended January 31, 2020 2019 2018 (in thousands) Cost of revenue $ 7,860 $ 1,119 $ 204 Research and development 11,645 1,369 360 Sales and marketing 41,465 3,540 812 General and administrative 12,139 2,913 8,953 Total stock-based compensation expense $ 73,109 $ 8,941 $ 10,329 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of the net income (loss) before the provision for income taxes were as follows: Year Ended January 31, 2020 2019 2018 (in thousands) Domestic $ 16,268 $ (204) $ (3,782) Foreign 10,094 8,553 264 Total $ 26,362 $ 8,349 $ (3,518) The provision for income taxes was as follows: Year Ended January 31, 2020 2019 2018 (in thousands) Current: Federal $ — $ — $ — State 14 80 46 Foreign 2,226 685 258 Total current income tax expense 2,240 765 304 Deferred: Federal — — — State — — — Foreign (1,183) — — Total deferred income tax expense (1,183) — — Total provision for income taxes $ 1,057 $ 765 $ 304 The provision for income taxes differs from the amount computed by applying the statutory federal tax rate as follows: Year Ended January 31, 2020 2019 2018 (in thousands) Tax at federal statutory rate $ 5,536 $ 1,764 $ (1,157) State taxes 14 67 45 Foreign rate differential (2,096) (1,627) (26) Stock-based compensation (32,070) 1,662 3,272 Permanent items 1,009 809 117 Research and development credits (2,808) (289) (150) Tax uncertainties 1,019 515 516 Change in valuation allowance 30,932 (1,438) (1,537) Change in federal tax rate — — (881) Other (479) (698) 105 Total $ 1,057 $ 765 $ 304 Effective tax rate 4.0 % 9.2 % (8.6) % Deferred income taxes result from differences in the recognition of amounts for tax and financial reporting purposes, as well as operating loss and tax credit carryforwards. Significant components of our deferred income tax assets as of January 31, 2020 and 2019 are as follows: As of January 31, 2020 2019 (in thousands) Deferred tax assets: Net operating loss carryforwards $ 37,507 $ 6,517 Research and development credit carryforwards 5,701 972 Stock-based compensation 4,145 133 Accruals and reserves 11,586 6,856 Deferred revenue 5,234 2,646 Operating lease liabilities 17,716 — Total deferred tax assets 81,889 17,124 Valuation allowance (36,353) (877) Total deferred tax assets net of valuation allowance 45,536 16,247 Deferred tax liabilities: Property and equipment (6,744) (4,779) Deferred commissions (21,156) (11,468) Operating right-of-use assets (16,453) — Total deferred tax liabilities (44,353) (16,247) Net deferred tax assets $ 1,183 $ — In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management believes it is more likely than not that the deferred tax assets will not be realized; accordingly, a valuation allowance has been recorded on U.S. and U.K. net deferred tax assets. The valuation allowance increased $35.5 million during the fiscal year ended January 31, 2020 and was primarily attributable to net operating losses generated as a result of stock-based compensation windfall benefits. The valuation allowance decreased $2.3 million during the fiscal year ended January 31, 2019 and was primarily attributable to deferred tax liabilities generated from the capitalization of commissions for GAAP purposes. The valuation allowance decreased $3.1 million during the fiscal year ended January 31, 2018 and was primarily attributable to remeasuring the U.S. net deferred tax assets at the applicable tax rate of 21% in accordance with the TCJA, offset by increases in deferred tax assets primarily related to net operating losses. As of January 31, 2020, we had net operating loss carryforwards of approximately $148.0 million for federal income tax purposes, a portion of which will begin to expire in 2032 if unused. We had net operating loss carryforwards of approximately $88.2 million for state income tax purposes, which will begin to expire in the year 2027 if unused. We also had certain foreign net operating loss carryforwards of $6.8 million, which have an indefinite life. As of January 31, 2020, we also had research and development credit carryforwards of approximately $6.7 million for federal income tax and $5.9 million for state income tax purposes. The federal research and development tax credit will begin to expire in 2036 if unused. State research and development tax credits carry forward indefinitely. The federal and state net operating loss carryforwards may be subject to significant limitations under Section 382 and Section 383 of the Internal Revenue Code of 1986 and similar provisions under state law. The Tax Reform Act of 1986 contains provisions that limit the federal net operating loss carryforwards that may be used in any given year in the event of special occurrences, including significant ownership changes. We have completed a Section 382 review and determined that none of our operating losses will expire solely due to Section 382 limitation(s). We indefinitely reinvest earnings from our foreign subsidiaries and therefore no deferred tax liability has been recognized on the basis difference created by such earnings. We have not provided foreign withholding taxes for any undistributed earnings of our foreign subsidiaries. We comply with ASC 740-10, Accounting for Uncertainty in Income Taxes , which prescribes a comprehensive model for the recognition, measurement, presentation, and disclosure in financial statements of any uncertain tax positions that have been taken or are expected to be taken on a tax return. This pronouncement sets a “more likely than not” criterion for recognizing the tax benefit of uncertain tax positions. Total unrecognized tax benefits are $8.1 million as of January 31, 2020. If recognized, $2.0 million would affect our effective tax rate. A reconciliation of the beginning and ending balance of total unrecognized tax position is as follows: Unrecognized Tax Benefits (in thousands) Balance - January 31, 2017 $ 1,205 Increases related to current years’ tax positions 771 Balance - January 31, 2018 1,976 Increases related to current years’ tax positions 802 Balance - January 31, 2019 2,778 Increases related to current years’ tax positions 5,328 Balance - January 31, 2020 $ 8,106 Our policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. We recognized $0.3 million interest and penalties associated with unrecognized tax benefits during the fiscal year ended January 31, 2020, and we incurred no interest and penalties during the fiscal year ended January 31, 2019. We file income tax returns in the U.S. federal jurisdiction, various state jurisdictions, and various foreign jurisdictions. As of January 31, 2020, all of the years remain open to examination by the federal and state tax authorities, for three or four years from the tax year in which net operating losses or tax credits are utilized. We are currently under Internal Revenue Service (“IRS”) examination for the tax year ended January 31, 2018. We believe that an adequate provision has been made for any adjustments that may result from tax examinations. Although the timing of the resolution, settlement, and closure of audits is not certain, we do not believe it is reasonably possible that our unrecognized tax benefits will materially change in the next 12 months. |
Net Income (Loss) Per Share Att
Net Income (Loss) Per Share Attributable to Common Stockholders | 12 Months Ended |
Jan. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share Attributable to Common Stockholders | Net Income (Loss) Per Share Attributable to Common Stockholders The following table sets forth the computation of basic and diluted net income (loss) per share attributable to common stockholders for the periods presented: Year Ended January 31, 2020 2019 2018 Class A Class B Class A Class B Class A Class B Numerator: (in thousands, except share and per share data) Net income (loss) $ 5,450 $ 19,855 $ — $ 7,584 $ — $ (3,822) Less: distributed earnings attributable to participating securities — — — — — (4,405) Less: undistributed earnings attributable to participating securities — (3,555) — (7,584) — — Net income (loss) attributable to common stockholders, basic $ 5,450 $ 16,300 $ — $ — $ — $ (8,227) Reallocation of net income (loss) attributable to common stockholders (439) 439 — — — — Net income (loss) attributable to common stockholders, diluted $ 5,011 $ 16,739 $ — $ — $ — $ (8,227) Denominator: Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, basic 58,541,269 175,100,067 — 84,483,094 — 78,119,865 Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, diluted 58,583,874 195,714,140 — 116,005,681 — 78,119,865 Net income (loss) per share attributable to common stockholders, basic $ 0.09 $ 0.09 $ — $ 0.00 $ — $ (0.11) Net income (loss) per share attributable to common stockholders, diluted $ 0.09 $ 0.09 $ — $ 0.00 $ — $ (0.11) The potential shares of common stock that were excluded from the computation of diluted net income (loss) per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive are as follows: Year Ended January 31, 2020 2019 2018 Class A Class B Class A Class B Class A Class B Convertible preferred stock — — — — — 152,665,804 Outstanding stock options 141,782 — — 3,541,878 — 34,170,489 Unvested RSUs 606,971 — — — — — Purchase rights committed under the ESPP 1,180,664 — — — — — Shares subject to repurchase from early exercised stock options and restricted stock — — — — — 2,302,483 Total 1,929,417 — — 3,541,878 — 189,138,776 The table above does not include 500,000 shares of issued Class A common stock held by us and reserved for the sole purpose of being transferred to a nonprofit organization to be formed or identified by us at a future time. The convertible promissory notes are contingently convertible (convertible upon completion of an IPO or a qualified financing event as discussed in Note 6), and the conditions for the convertible feature were not satisfied as of January 31, 2019. For fiscal year ended January 31, 2019, we have excluded these potential dilutive shares from the calculation of diluted net income per share attributable to common stockholders. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Jan. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) Selected summarized quarterly financial information for the fiscal years 2020 and 2019 is as follows: Three Months Ended January 31, 2020 October 31, 2019 July 31, 2019 April 30, 2019 January 31, 2019 October 31, 2018 July 31, 2018 April 30, 2018 (in thousands) Revenue $ 188,251 $ 166,593 $ 145,826 $ 121,988 $ 105,800 $ 90,121 $ 74,526 $ 60,070 Gross profit 155,704 135,748 117,926 97,884 86,275 73,278 61,553 48,410 Income (loss) from operations 10,553 (1,679) 2,265 1,557 5,492 (1,063) 3,422 (1,684) Net income (loss) attributable to common stockholders $ 15,313 $ 2,207 $ 5,521 $ 198 $ 1,196 $ (598) $ 496 $ (1,340) Net income (loss) per share attributable to common stockholders: Basic $ 0.06 $ 0.01 $ 0.02 $ 0.00 $ 0.01 $ (0.01) $ 0.01 $ (0.02) Diluted $ 0.05 $ 0.01 $ 0.02 $ 0.00 $ 0.01 $ (0.01) $ 0.00 $ (0.02) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jan. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events We have evaluated subsequent events from the balance sheet date through March 20, 2020, the date at which the consolidated financial statements were available to be issued. Subsequent to January 31, 2020, we entered into an agreement to lease additional space and extend the term of existing leases located in the United States. We expect to make $8.9 million of additional rent payments over the term of these leases, which expires during the year ending January 31, 2030. |
Schedule II_ Valuation and Qual
Schedule II: Valuation and Qualifying Accounts | 12 Months Ended |
Jan. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II: Valuation and Qualifying Accounts | Schedule II: Valuation and Qualifying Accounts The table below details the activity of the accounts receivable allowances and deferred tax asset valuation allowance for the fiscal years ended January 31, 2020, 2019, and 2018: Balance at Additions Write-offs or Deductions Balance at (in thousands) Year ended January 31, 2020 Accounts receivable allowances $ 2,071 $ 8,583 $ (3,020) $ 7,634 Deferred tax asset valuation allowance 877 35,476 — 36,353 Year ended January 31, 2019 Accounts receivable allowances $ 560 $ 3,763 $ (2,252) $ 2,071 Deferred tax asset valuation allowance 3,154 — (2,277) 877 Year ended January 31, 2018 Accounts receivable allowances $ 922 $ 1,284 $ (1,646) $ 560 Deferred tax asset valuation allowance 6,220 — (3,066) 3,154 |
Summary of Business and Signi_2
Summary of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with GAAP and include the accounts of Zoom Video Communications, Inc., its subsidiaries, and a variable interest entity (“VIE”) for which we are the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. |
Variable Interest Entities | Variable Interest Entities In the normal course of business, we may enter into relationships with entities that are deemed to be VIEs. A VIE is a legal entity that satisfies any of the following characteristics: (a) the legal entity does not have sufficient equity investment at risk; (b) the equity investors at risk, as a group, lack the characteristics of a controlling financial interest; or (c) the legal entity is structured with disproportionate voting rights, and substantially all of the activities are conducted on behalf of an investor with disproportionately few voting rights. We consolidate a VIE for which we are the primary beneficiary. The primary beneficiary of a VIE is the party, if any, with both of the following characteristics: (a) the power to direct the activities that most significantly affect the VIE’s economic performance (the “power criterion”) and (b) the obligation to absorb losses or the right to receive residual returns of the VIE that could potentially be significant to the VIE (the “economics criterion”). During fiscal year 2020, a VIE (the “China VIE”) was established and holds the license required to sell our products and services in the People’s Republic of China. However, we are the exclusive provider of technical and consulting services to the China VIE and own all copyrights, patents, technical secrets, trade secrets, and other intellectual properties related to and arising from the operations of the China VIE. Any creditors of the China VIE do not have recourse to our general credit. Through the China VIE agreements, we have the unilateral power to vote all of the shares of the China VIE, set its corporate policies and guidance, and designate the members of its board of directors and management team. We are also entitled to receive all dividends of the China VIE. Because both the power and economics criteria are met, we are the primary beneficiary of and therefore have a controlling financial interest in the China VIE. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant items subject to such estimates and assumptions include, but are not limited to, the estimated expected benefit period for deferred contract acquisition costs, the accounts receivable allowances, the useful lives of long-lived assets, the incremental borrowing rate for operating leases, the valuation of derivative liabilities, the value of common stock and other assumptions used to measure stock-based compensation expense, sales and other tax liabilities, and the valuation of deferred income tax assets and uncertain tax positions. Actual results could differ from those estimates. |
Concentration of Risks | Concentration of Risks Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, restricted cash, and accounts receivable. We maintain our cash, cash equivalents, marketable securities, and restricted cash with high-quality financial institutions with investment-grade ratings. A majority of the cash balances are with U.S. banks and are insured to the extent defined by the Federal Deposit Insurance Corporation. |
Cash and Cash Equivalents and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents consist of cash in banks and highly liquid investments, primarily money market funds, purchased with an original maturity of three months or less. Historically, restricted cash consisted of certificates of deposit collateralizing our operating leases and corporate credit cards, and was included in prepaid expenses and other current assets and other assets, noncurrent in the consolidated balance sheets. In the third quarter of fiscal year 2020, we received $48.5 million of cash from proceeds on international employees’ sales of our common stock. The amount is held in our bank account until it is remitted to the employees and the tax authorities. Due to the restrictions on the use of the funds in the bank account, we have classified the amount as restricted cash included in prepaid expenses and other current assets, and a corresponding amount is included in accrued expenses and other current liabilities in the consolidated balance sheets. |
Marketable Securities | Marketable Securities Marketable securities consist primarily of high-grade commercial paper, corporate bonds, agency bonds, corporate debt securities, U.S. government agency securities, and treasury bills. We classify our marketable securities as available-for-sale at the time of purchase and reevaluate such classification at each balance sheet date. We may sell these securities at any time for use in current operations even if they have not yet reached maturity. As a result, we classify our securities, including those with maturities beyond 12 months, as current assets in the consolidated balance sheets. We carry these securities at fair value and |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the exchange price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We measure financial assets and liabilities at fair value at each reporting period using a fair value hierarchy, which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Financial instruments consist of cash equivalents, restricted cash, marketable securities, accounts receivable, accounts payable, convertible promissory notes, and derivative liabilities. Cash equivalents, restricted cash, marketable securities, and derivative liabilities are stated at fair value on a recurring basis. Accounts receivable and accounts payable are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment date. The principal amounts of the convertible promissory notes approximate fair value as the stated interest rates approximate market rates currently available to us. |
Accounts Receivable | Accounts ReceivableAccounts receivable are recorded at the invoiced amount and amounts for which revenue has been recognized but not invoiced, net of accounts receivable allowances. The accounts receivable allowances are based on our assessment of the collectability of accounts. We regularly review the adequacy of the accounts receivable allowances based on a combination of factors. In establishing any required allowance, management considers historical losses adjusted to take into account current market conditions and our customers’ financial condition, the amount of any receivables in dispute, the current receivables aging, and the current payment terms. Accounts receivable deemed uncollectible are charged against the accounts receivable allowances when identified. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net, are stated at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets, determined to be three |
Leases | Leases All lease arrangements are generally recognized at lease commencement. Operating lease right-of-use (“ROU”) assets and operating lease liabilities are recognized at commencement. For short-term leases (an initial term of 12 months or less), an ROU asset and corresponding lease liability are not recorded and we record rent expense in our consolidated statements of operations on a straight-line basis over the lease term and record variable lease payments as incurred. ROU assets represent our right to use an underlying asset during the reasonably certain lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of fixed payments not yet paid over the lease term. We use our incremental borrowing rate based on the information available at the commencement date in determining the lease liabilities as our leases generally do not provide an implicit rate. Our incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, in an economic environment where the leased asset is located. ROU assets also include any initial direct costs incurred and any lease payments made at or before the lease commencement date, less lease incentives received. We reassess the lease term if and when a significant event or change in circumstances occurs within our control. We currently do not have any finance leases. |
Impairment of Long-Lived Assets | Impairment of Long-Lived AssetsWe evaluate long-lived assets or asset groups for impairment whenever events indicate that the carrying value of an asset or asset group may not be recoverable based on expected future cash flows attributable to that asset or asset group. Recoverability of assets held and used is measured by comparing the carrying amount of an asset or an asset group to estimated undiscounted future net cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset or asset group exceeds estimated undiscounted future cash flows, then an impairment charge would be recognized based on the excess of the carrying amount of the asset or asset group over its fair value. Assets to be disposed of are reported at the lower of their carrying amount or fair value, less costs to sell. |
Revenue Recognition | Revenue Recognition We derive our revenue from subscription agreements with customers for access to our video-first communications platform and services. Revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration that we expect to receive in exchange for these services. We determine revenue recognition through the following steps: 1. Identification of the contract, or contracts, with the customer We determine a contract with a customer to exist when the contract is approved, each party’s rights regarding the services to be transferred can be identified, the payment terms for the services can be identified, the customer has the ability and intent to pay, and the contract has commercial substance. At contract inception, we will evaluate whether two or more contracts should be combined and accounted for as a single contract and whether the combined or single contract includes more than one performance obligation. We apply judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, credit and financial information pertaining to the customer. 2. Identification of the performance obligations in the contract Performance obligations committed in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the services and the products is separately identifiable from other promises in the contract. Our performance obligations generally consist of access to our video-first communications platform and related support services, which is considered one performance obligation. Our customers do not have the ability to take possession of our software, and through access to our platform, we provide a series of distinct software-based services that are satisfied over the term of the subscription. We also provide services, which include professional services, consulting services, and online event hosting, which are generally considered distinct from the access to our video-first communications platform. 3. Determination of the transaction price The transaction price is determined based on the consideration to which we expect to be entitled in exchange for transferring services to the customer. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue recognized under the contract will not occur. None of our contracts contain a significant financing component. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental entities (e.g., sales and other indirect taxes). Our video-first communications platform and related support services are typically warranted to perform in a professional manner that will comply with the terms of the subscription agreements. In addition, we include service-level commitments to our customers warranting certain levels of uptime reliability and performance and permitting those customers to receive credits in the event that we fail to meet those service levels. These credits represent a form of variable consideration. Historically, we have not experienced any significant incidents affecting the defined levels of reliability and performance as required by the subscription agreements. We have not provided any material refunds related to these agreements in the consolidated financial statements during the periods presented. 4. Allocation of the transaction price to the performance obligations in the contract Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on each performance obligation’s relative standalone selling price. As noted above, access to our video-first communications platform and related support services are considered one performance obligation in the context of the contract and accordingly the transaction price is allocated to this single performance obligation. 5. Recognition of the revenue when, or as, a performance obligation is satisfied Revenue is recognized at the time the related performance obligation is satisfied by transferring the control of the promised service to a customer. Revenue is recognized in an amount that reflects the consideration that we expect to receive in exchange for those services. Fees for access to our video-first communications platform and related support services are subscription revenue and are considered one performance obligation, and the related revenue is recognized ratably over the subscription period as we satisfy the performance obligation. Professional services are time-based arrangements and revenue is recognized as these services are performed. Fees for services represent less than 2% of total revenue during the periods presented. |
Cost of Revenue | Cost of Revenue Cost of revenue primarily consists of costs related to hosting our video-first communications platform and providing general operating support services to our customers. These costs are composed of co-located data center costs, third-party cloud hosting costs, integrated third-party PSTN services, personnel-related expenses, amortization of capitalized software |
Research and Development | Research and Development Research and development costs include personnel-related expenses associated with our engineering personnel and consultants responsible for the design, development, and testing of our video-first communications platform, depreciation of equipment used in research and development, and allocated overhead costs. Research and development costs are expensed as incurred. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred in sales and marketing expense and amounted to $42.0 million, $36.1 million, and $17.1 million for the fiscal years ended January 31, 2020, 2019, and 2018, respectively. |
Share-Based Compensation | Stock-Based Compensation Stock-based compensation expense related to stock awards (including stock options, restricted stock awards (“RSAs”), RSUs, and ESPP) is measured based on the fair value of the awards granted and recognized as an expense on a straight-line basis over the requisite service period for stock options, RSAs and RSUs, and over the offering period for the purchase rights issued under the ESPP. The fair value of each option and ESPP award is estimated on the grant date using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of highly subjective assumptions, including the fair value of the underlying common stock, the expected term of the award, the expected volatility of the price of our common stock, risk-free interest rates, and the expected dividend yield of our common stock. The fair value of each RSA and RSU award is based on the fair value of the underlying common stock as of the grant date. The assumptions used to determine the fair value of the stock awards represent management’s best estimates. These estimates involve inherent uncertainties and the application of management’s judgment. We account for forfeitures as they occur instead of estimating the number of awards expected to be forfeited. |
Foreign Currency | Foreign Currency The functional currency of our foreign subsidiaries is the U.S. dollar. Accordingly, monetary assets and liabilities of our foreign subsidiaries are remeasured into U.S. dollars at the exchange rates in effect at the reporting date, non-monetary assets and liabilities are remeasured at historical rates, and revenue and expenses are remeasured at average exchange rates in effect during each reporting period. Foreign currency related gains and losses have been immaterial during the periods presented. |
Income Taxes | Income Taxes We use the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and the tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. We must then assess the likelihood that the resulting deferred tax assets will be realized. A valuation allowance is provided when it is more likely than not that a deferred tax asset will not be fully realized. Management believes it is more likely than not that deferred tax assets in the United States and the U.K. will not be realized and, accordingly, a valuation allowance has been established on such deferred tax assets. We recognize benefits of uncertain tax positions if it is more likely than not that such positions will be sustained upon examination based solely on their technical merits at the largest amount of benefit that is more likely than not to be realized upon the ultimate settlement. Our policy is to recognize interest and penalties related to the underpayment of income taxes as a component of income tax expense or benefit. The calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of GAAP and U.S. and foreign tax laws. The resolution of these uncertain tax positions in a manner inconsistent with management’s expectations could have a material impact on our consolidated financial statements. |
Net Income (Loss) Per Share Attributable to Common Stockholders | Net Income (Loss) Per Share Attributable to Common Stockholders We calculate our net income (loss) per share attributable to Class A and Class B common stock using the two-class method required for companies with participating securities. We consider our convertible preferred stock and unvested common stock, which includes early exercised stock options and RSAs, to be participating securities as holders of such securities have non-forfeitable dividend rights in the event of our declaration of a dividend for shares of common stock. During the periods when we are in a net loss position, the net loss attributable to common stockholders was not allocated to the convertible preferred stock and unvested common stock under the two-class method as these securities do not have a contractual obligation to share in our losses. Distributed and undistributed earnings allocated to participating securities are subtracted from net income (loss) in determining net income (loss) attributable to common stockholders. Basic net income (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of our Class A and Class B common stock outstanding. The diluted net income per share attributable to common stockholders is computed by giving effect to all dilutive securities. Diluted net income per share attributable to common stockholders is computed by dividing the resulting net income attributable to common stockholders by the weighted-average number of fully diluted common shares outstanding. During the periods when there is a net loss attributable to common stockholders, potentially dilutive common stock equivalents have been excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect is anti-dilutive. |
Segment Information | Segment Information We operate in one operating segment. Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker, who is our Chief Executive Officer (“CEO”), in deciding how to allocate resources and assessing performance. Our chief operating decision maker allocates resources and assesses performance based upon consolidated financial information. |
Recent Accounting Pronouncements Not Yet Adopted and Recently Adopted Accounting Pronouncements | Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which replaces the existing incurred loss impairment model with an expected credit loss model and requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected. The guidance will be effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. We do not expect the adoption to have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-use Software (subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract . The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The guidance will be effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. We are currently evaluating whether the adoption of this standard will have a material impact on our consolidated financial statements. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which supersedes FASB Accounting Standards Codification (“ASC”) Topic 840, Leases (“ASC 840”), and makes other conforming amendments to GAAP. ASU No. 2016-02 requires, among other changes to the lease accounting guidance, lessees to recognize most leases on-balance sheet via an ROU asset and lease liability, and additional qualitative and quantitative disclosures. ASU No. 2016-02 is effective for the annual periods in fiscal years beginning after December 15, 2018, and interim periods therein. We adopted the standard as of February 1, 2019, using the modified retrospective method of applying the new standard at the adoption date. Under this approach, we will continue to report comparative periods presented in the period of adoption under ASC 840. We have elected the package of practical expedients permitted under the transition guidance within the new standard, which allows us to (1) carry forward the historical lease classification, (2) not reassess whether any expired or existing contracts contain leases, and (3) not reassess indirect costs for any existing leases. This election allows us to account for lease components (e.g., fixed payments or variable payments that depend on a rate that can be determined at commencement, including rent for the right to use the asset) together with non-lease components (e.g., other fixed payments that deliver a good or service, including common area maintenance costs) in the calculation of the ROU asset and corresponding liability. Adoption of this standard resulted in the recording of ROU assets and lease liabilities of $40.5 million and $43.0 million, respectively, with no material impact on retained earnings as of February 1, 2019. See Note 7 for further details. In February 2018, the FASB issued ASU No. 2018-02, Compensation—Stock Compensation (Topic 718): Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The standard allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (“TCJA”). The standard eliminates the stranded tax effects from the TCJA and improves the usefulness of information reported to users of our consolidated financial statements. ASU No. 2018-02 is effective for the annual periods in fiscal years beginning after December 15, 2018, and interim periods therein. We adopted ASU No. 2018-02 as of February 1, 2019, and our adoption did not have a material impact on the consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemploy ee Share-Based Payment Accounting . The standard simplifies the accounting for share-based payments granted to nonemployees for goods and services and aligns most of the guidance on such payments to nonemployees with the requirements for share-based payments granted to employees. ASU No. 2018-07 is effective for the annual periods in fiscal years beginning after December 15, 2018, and interim periods therein, using a modified retrospective approach. We adopted ASU No. 2018-07 as of February 1, 2019, and our adoption did not have a material impact on the consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement . The standard no longer requires disclosure of the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; however, public companies will be required to disclose the range and weighted-average of significant unobservable inputs used to develop Level 3 fair value measurements. ASU No. 2018-13 is effective for the annual periods in fiscal years beginning after December 15, 2019, and interim periods therein, with early adoption permitted. We adopted ASU No. 2018-13 as of February 1, 2019, and our adoption did not have a material impact on the consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . The amendment removes certain exceptions to the general principles in Topic 740. The guidance will be effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. Early adoption of the amendments is permitted, including adoption in any interim period for public business entities for periods for which financial statements have not yet been issued. We have adopted ASU No. 2019-12 as of February 1, 2019, and our adoption did not have a material impact on the consolidated financial statements. |
Equity Securities without Readily Determinable Fair Value | Equity Investment In the third quarter of fiscal year 2020, we made a $3.0 million strategic investment in a private limited liability company in the business of designing and developing video communications hardware. We do not have a controlling financial interest in the investee nor the ability to exercise significant influence over the operating and financial policies of the investee. The investment is included within other assets, noncurrent in the consolidated balance sheets. Dividend income, unrealized and realized holding gains or losses, and impairment charges would be reported in interest income and other, net in the consolidated statements of operations. The maximum loss we could incur for this investment is its carrying value. We have elected to measure this investment, which does not have a readily determinable fair value, at its cost minus impairment, if any. If we identify observable price changes in orderly transactions for the identical or a similar investment of the same issuer, we will measure the equity security at fair value as of the date that the observable transaction occurred (i.e., using the measurement alternative). At each reporting period, we perform a qualitative assessment considering impairment indicators to evaluate whether the investment is impaired. If this qualitative assessment indicates that the investment is impaired and the fair value of the investment is less than its carrying amount, the investment would be written down to its fair value. |
Internal Use Software, Software to be Sold, Leased, or Otherwise Marketed, Policy | Software Development Costs We capitalize certain development costs related to our video-first communications platform during the application development stage. Costs incurred in the preliminary stages of development are analogous to research and development activities and are expensed as incurred. The preliminary stage includes activities such as conceptual formulation of alternatives, evaluation of alternatives, determination of existence of needed technology, and final selection of alternatives. Once the application development stage is reached, internal and external costs are capitalized until the software is substantially complete and ready for its intended use. Capitalized software development costs are recorded as part of property and equipment, net. Maintenance, minor upgrades, and training costs are expensed as incurred. Capitalized software development costs are amortized on a straight-line basis over the software’s estimated useful life, which is generally three years, and are recorded in cost of revenue in the consolidated statements of operations. We have capitalized $3.1 million, $2.5 million, and $0.8 million of software development costs during the fiscal years ended January 31, 2020, 2019, and 2018, respectively. |
Summary of Business and Signi_3
Summary of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Accounting Policies [Abstract] | |
Long-lived Assets by Geographic Areas | The following table presents our property and equipment, net of depreciation and amortization, by geographic region: As of January 31, 2020 2019 (in thousands) Americas $ 48,519 $ 26,048 APAC 7,464 8,928 EMEA 1,155 2,299 Total property and equipment, net $ 57,138 $ 37,275 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue by Region | The following table summarizes revenue by region based on the billing address of customers: Year Ended January 31, 2020 2019 2018 Amount Percentage of Amount Percentage of Amount Percentage of (in thousands, except percentages) Americas $ 500,622 81 % $ 270,132 82 % $ 125,428 83 % APAC 51,152 8 27,720 8 13,652 9 EMEA 70,884 11 32,665 10 12,398 8 Total $ 622,658 100 % $ 330,517 100 % $ 151,478 100 % |
Deferred Contract Acquisition Costs | The following table represents a rollforward of deferred contract acquisition costs: Year Ended January 31, 2020 2019 (in thousands) Beginning balance $ 55,516 $ 30,586 Additions to deferred contract acquisition costs 72,715 45,769 Amortization of deferred contract acquisition costs (37,101) (20,839) Ending balance $ 91,130 $ 55,516 Deferred contract acquisition costs, current (to be amortized in next 12 months) $ 44,885 $ 26,453 Deferred contract acquisition costs, noncurrent 46,245 29,063 Total deferred contract acquisition costs $ 91,130 $ 55,516 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Marketable Securities | As of January 31, 2020 and 2019, our marketable securities consisted of the following: As of January 31, 2020 Amortized Gross Gross Estimated (in thousands) Commercial paper $ 37,894 $ — $ — $ 37,894 Agency bonds 141,157 49 (43) 141,163 Corporate and other debt securities 320,407 775 (16) 321,166 U.S. government agency securities 71,794 45 (2) 71,837 Marketable securities $ 571,252 $ 869 $ (61) $ 572,060 As of January 31, 2019 Amortized Gross Gross Estimated (in thousands) Commercial paper $ 1,243 $ — $ — $ 1,243 Corporate bonds 53,267 — (53) 53,214 Agency bonds 32,675 — (71) 32,604 U.S. government agency securities 24,028 — (11) 24,017 Treasury bills 1,699 — — 1,699 Marketable securities $ 112,912 $ — $ (135) $ 112,777 |
Summary of Contractual Maturities of Marketable Securities | The following table presents the contractual maturities of our marketable securities as of January 31, 2020 and 2019: As of January 31, 2020 2019 (in thousands) Less than one year $ 315,900 $ 85,077 Due in one to five years 256,160 27,700 Total $ 572,060 $ 112,777 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Measured at Fair Value on Recurring Basis | The following tables present information about our financial instruments that are measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value: As of January 31, 2020 Fair Value Level 1 Level 2 Level 3 (in thousands) Financial Assets: Money market funds $ 96,486 $ 96,486 $ — $ — Commercial paper 4,994 — 4,994 — Agency bonds 9,999 — 9,999 — Cash equivalents 111,479 96,486 14,993 — Commercial paper 37,894 — 37,894 — Agency bonds 141,163 — 141,163 — Corporate and other debt securities 321,166 — 321,166 — U.S. government agency securities 71,837 — 71,837 — Marketable securities 572,060 — 572,060 — Certificate of deposit included in prepaid expenses and other current assets 100 — 100 — Certificates of deposit included in other assets, noncurrent 2,301 — 2,301 — Total financial assets $ 685,940 $ 96,486 $ 589,454 $ — As of January 31, 2019 Fair Value Level 1 Level 2 Level 3 (in thousands) Financial Assets: Money market funds $ 78 $ 78 $ — $ — Cash equivalents 78 78 — — Commercial paper 1,243 — 1,243 — Corporate bonds 53,214 — 53,214 — Agency bonds 32,604 — 32,604 — U.S. government agency securities 24,017 — 24,017 — Treasury bills 1,699 — 1,699 — Marketable securities 112,777 — 112,777 — Certificate of deposit included in prepaid expenses and other current assets 200 — 200 — Certificates of deposit included in other assets, noncurrent 2,144 — 2,144 — Total financial assets $ 115,199 $ 78 $ 115,121 $ — Financial Liabilities: Convertible promissory notes – derivative liabilities included in other liabilities, noncurrent $ 163 $ — $ — $ 163 Total financial liabilities $ 163 $ — $ — $ 163 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure | Prepaid expenses and other current assets consisted of the following: As of January 31, 2020 2019 (in thousands) Restricted cash from international employee stock sales $ 48,547 $ — Prepaid expenses 22,320 9,263 Other 4,141 989 Prepaid expenses and other current assets $ 75,008 $ 10,252 |
Schedule of Property and Equipment | Property and equipment consisted of the following: As of January 31, 2020 2019 (in thousands) Computer and office equipment $ 51,375 $ 32,515 Leasehold improvements 18,215 7,660 Software 10,855 6,575 Furniture and fixtures 3,949 1,993 Property and equipment, gross 84,394 48,743 Less: accumulated depreciation and amortization (27,256) (11,468) Property and equipment, net $ 57,138 $ 37,275 |
Schedule of Other Assets, Noncurrent | Other assets, noncurrent consisted of the following: As of January 31, 2020 2019 (in thousands) Accounts receivable, noncurrent $ 9,011 $ 3,264 Equity investment 3,000 — Other 10,321 8,244 Other assets, noncurrent $ 22,332 $ 11,508 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: As of January 31, 2020 2019 (in thousands) Liabilities to employees and tax authorities from international employee stock sales $ 49,287 $ — Accrued compensation and benefits 36,732 12,004 Accrued expenses 17,475 13,596 Operating lease liabilities, current 7,675 — Other 11,523 6,656 Accrued expenses and other current liabilities $ 122,692 $ 32,256 |
Schedule of Other Liabilities, Noncurrent | Other liabilities, noncurrent consisted of the following: As of January 31, 2020 2019 (in thousands) Sales and other tax liabilities $ 33,957 $ 20,817 Convertible promissory notes, net of debt discount — 14,858 Other 2,329 3,785 Other liabilities, noncurrent $ 36,286 $ 39,460 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information | Supplemental balance sheet information as of January 31, 2020, related to operating leases was as follows: As of January 31, 2020 (in thousands) Reported as: Assets: Operating lease right-of-use assets $ 68,608 Liabilities: Accrued expenses and other current liabilities $ 7,675 Operating lease liabilities, noncurrent 64,792 Total operating lease liabilities $ 72,467 |
Supplemental Cash Flow and Other Information | Supplemental cash flow and other information for the fiscal year ended January 31, 2020, related to operating leases was as follows: Year Ended (in thousands) Cash payments included in the measurement of our operating lease liabilities $ 9,774 Operating lease right-of-use assets recognized in exchange for new operating lease obligations $ 34,993 |
Schedule of Future Minimum Lease Payments included in Measurement of Operating Lease Liabilities | As of January 31, 2020, the future minimum lease payments included in the measurement of our operating lease liabilities are as follows: As of January 31, 2020 (in thousands) Year Ending January 31, 2021 $ 11,170 2022 12,191 2023 12,177 2024 11,541 2025 11,348 Thereafter 29,383 Total operating lease payments $ 87,810 Less: imputed interest (15,343) Total operating lease liabilities $ 72,467 |
Schedule of Future Minimum Payments Related to Operating Leases | As previously disclosed in Note 6. “Commitments and Contingencies” to Notes to Consolidated Financial Statements in our Prospectus and under the previous lease accounting standard, future minimum payments related to operating leases as of January 31, 2019 are as follows: As of January 31, 2019 (in thousands) Year Ending January 31, 2020 $ 7,609 2021 7,837 2022 7,888 2023 7,514 2024 7,174 Thereafter 18,635 Total future minimum payments $ 56,657 |
Convertible Preferred Stock, _2
Convertible Preferred Stock, Stockholders’ Equity (Deficit) and Equity Incentive Plan (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Equity [Abstract] | |
Schedule of Stock by Class | Convertible preferred stock consisted of the following as of January 31, 2019 and as of immediately prior to the automatic conversion of convertible preferred stock into common stock: As of January 31, 2019 Designated Shares Issued Aggregate (in thousands, except share data) Series A 67,083,500 61,717,700 $ 9,258 Series B 25,857,784 25,857,784 6,500 Series C 34,363,256 34,363,256 30,000 Series D 30,800,000 30,727,064 114,966 Total convertible preferred stock 158,104,540 152,665,804 $ 160,724 |
Schedule of Stock by Class Reserved for Future Issuance | We have the following shares of common stock reserved for future issuance: As of January 31, 2020 2019 Conversion of convertible preferred stock — 152,665,804 Stock options outstanding 16,833,009 35,064,465 RSUs outstanding 1,964,668 — ESPP purchase rights outstanding 1,323,662 — Remaining shares available for future issuance under the 2011 and 2019 plan 33,604,587 1,848,100 Remaining shares available for future issuance under the ESPP 7,186,070 — Total shares of common stock reserved 60,911,996 189,578,369 |
Summary of Stock Option Activity Under Equity Incentive Plan | A summary of stock option activity under our equity incentive plan and related information is as follows: Stock Options Outstanding Weighted- Weighted- Aggregate (in thousands, except share, life and per share data) Balance as of January 31, 2019 35,064,465 $ 1.48 6.8 $ 534,572 Granted 1,576,150 $ 36.86 Exercised (19,003,652) $ 0.49 $ 767,336 Canceled/forfeited/expired (803,954) $ 5.15 Balance as of January 31, 2020 16,833,009 $ 5.73 7.6 $ 1,191,881 Vested and exercisable as of January 31, 2020 7,248,393 $ 1.78 6.8 $ 540,222 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The Black-Scholes assumptions used to value the employee options at the grant dates are as follows: Year Ended January 31, 2020 2019 2018 Expected term (years) 5.0 - 6.1 5.0 - 6.2 5.6 - 6.7 Expected volatility 49.9% - 53.2% 44.6% - 48.2% 47.7% - 52.0% Risk-free interest rate 1.6% - 2.5% 2.6% - 3.1% 1.8% - 2.3% Expected dividend yield — — — |
Summary of Restricted Stock Units (RSUs) Activity Under Equity Incentive Plan | A summary of RSU activity under our equity incentive plan and related information is as follows: RSUs Unvested Weighted-Average Unvested as of January 31, 2019 — $ — Granted 2,048,248 $ 79.22 Vested (31,649) $ 78.23 Canceled/forfeited (51,931) $ 84.00 Unvested as of January 31, 2020 1,964,668 $ 79.11 |
Summary of Assumptions for Estimating Fair Value of ESPP Purchase Rights | We estimated the fair value of ESPP purchase rights using a Black-Scholes option-pricing model with the following assumptions: Year Ended Expected term (years) 0.5 - 2.1 Expected volatility 40.3% - 56.2% Risk-free interest rate 1.5% - 2.5% Expected dividend yield — |
Summary of Stock-based Compensation Expense by Line Item | The stock-based compensation expense by line item in the accompanying consolidated statements of operations is summarized as follows: Year Ended January 31, 2020 2019 2018 (in thousands) Cost of revenue $ 7,860 $ 1,119 $ 204 Research and development 11,645 1,369 360 Sales and marketing 41,465 3,540 812 General and administrative 12,139 2,913 8,953 Total stock-based compensation expense $ 73,109 $ 8,941 $ 10,329 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of the Net Income (Loss) before Provision of Income Taxes | The components of the net income (loss) before the provision for income taxes were as follows: Year Ended January 31, 2020 2019 2018 (in thousands) Domestic $ 16,268 $ (204) $ (3,782) Foreign 10,094 8,553 264 Total $ 26,362 $ 8,349 $ (3,518) |
Provision of Income Taxes | The provision for income taxes was as follows: Year Ended January 31, 2020 2019 2018 (in thousands) Current: Federal $ — $ — $ — State 14 80 46 Foreign 2,226 685 258 Total current income tax expense 2,240 765 304 Deferred: Federal — — — State — — — Foreign (1,183) — — Total deferred income tax expense (1,183) — — Total provision for income taxes $ 1,057 $ 765 $ 304 |
Provision for Income Taxes | The provision for income taxes differs from the amount computed by applying the statutory federal tax rate as follows: Year Ended January 31, 2020 2019 2018 (in thousands) Tax at federal statutory rate $ 5,536 $ 1,764 $ (1,157) State taxes 14 67 45 Foreign rate differential (2,096) (1,627) (26) Stock-based compensation (32,070) 1,662 3,272 Permanent items 1,009 809 117 Research and development credits (2,808) (289) (150) Tax uncertainties 1,019 515 516 Change in valuation allowance 30,932 (1,438) (1,537) Change in federal tax rate — — (881) Other (479) (698) 105 Total $ 1,057 $ 765 $ 304 Effective tax rate 4.0 % 9.2 % (8.6) % |
Significant Components of Deferred Income Tax Assets | Significant components of our deferred income tax assets as of January 31, 2020 and 2019 are as follows: As of January 31, 2020 2019 (in thousands) Deferred tax assets: Net operating loss carryforwards $ 37,507 $ 6,517 Research and development credit carryforwards 5,701 972 Stock-based compensation 4,145 133 Accruals and reserves 11,586 6,856 Deferred revenue 5,234 2,646 Operating lease liabilities 17,716 — Total deferred tax assets 81,889 17,124 Valuation allowance (36,353) (877) Total deferred tax assets net of valuation allowance 45,536 16,247 Deferred tax liabilities: Property and equipment (6,744) (4,779) Deferred commissions (21,156) (11,468) Operating right-of-use assets (16,453) — Total deferred tax liabilities (44,353) (16,247) Net deferred tax assets $ 1,183 $ — |
Reconciliation of Unrecognized Tax Position | A reconciliation of the beginning and ending balance of total unrecognized tax position is as follows: Unrecognized Tax Benefits (in thousands) Balance - January 31, 2017 $ 1,205 Increases related to current years’ tax positions 771 Balance - January 31, 2018 1,976 Increases related to current years’ tax positions 802 Balance - January 31, 2019 2,778 Increases related to current years’ tax positions 5,328 Balance - January 31, 2020 $ 8,106 |
Net Income (Loss) Per Share A_2
Net Income (Loss) Per Share Attributable to Common Stockholders (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share | The following table sets forth the computation of basic and diluted net income (loss) per share attributable to common stockholders for the periods presented: Year Ended January 31, 2020 2019 2018 Class A Class B Class A Class B Class A Class B Numerator: (in thousands, except share and per share data) Net income (loss) $ 5,450 $ 19,855 $ — $ 7,584 $ — $ (3,822) Less: distributed earnings attributable to participating securities — — — — — (4,405) Less: undistributed earnings attributable to participating securities — (3,555) — (7,584) — — Net income (loss) attributable to common stockholders, basic $ 5,450 $ 16,300 $ — $ — $ — $ (8,227) Reallocation of net income (loss) attributable to common stockholders (439) 439 — — — — Net income (loss) attributable to common stockholders, diluted $ 5,011 $ 16,739 $ — $ — $ — $ (8,227) Denominator: Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, basic 58,541,269 175,100,067 — 84,483,094 — 78,119,865 Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, diluted 58,583,874 195,714,140 — 116,005,681 — 78,119,865 Net income (loss) per share attributable to common stockholders, basic $ 0.09 $ 0.09 $ — $ 0.00 $ — $ (0.11) Net income (loss) per share attributable to common stockholders, diluted $ 0.09 $ 0.09 $ — $ 0.00 $ — $ (0.11) |
Summary of Potential Shares of Common Stock Excluded from Computation of Diluted Net Income Per Share Attributable to Common Stockholders | The potential shares of common stock that were excluded from the computation of diluted net income (loss) per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive are as follows: Year Ended January 31, 2020 2019 2018 Class A Class B Class A Class B Class A Class B Convertible preferred stock — — — — — 152,665,804 Outstanding stock options 141,782 — — 3,541,878 — 34,170,489 Unvested RSUs 606,971 — — — — — Purchase rights committed under the ESPP 1,180,664 — — — — — Shares subject to repurchase from early exercised stock options and restricted stock — — — — — 2,302,483 Total 1,929,417 — — 3,541,878 — 189,138,776 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Selected summarized quarterly financial information for the fiscal years 2020 and 2019 is as follows: Three Months Ended January 31, 2020 October 31, 2019 July 31, 2019 April 30, 2019 January 31, 2019 October 31, 2018 July 31, 2018 April 30, 2018 (in thousands) Revenue $ 188,251 $ 166,593 $ 145,826 $ 121,988 $ 105,800 $ 90,121 $ 74,526 $ 60,070 Gross profit 155,704 135,748 117,926 97,884 86,275 73,278 61,553 48,410 Income (loss) from operations 10,553 (1,679) 2,265 1,557 5,492 (1,063) 3,422 (1,684) Net income (loss) attributable to common stockholders $ 15,313 $ 2,207 $ 5,521 $ 198 $ 1,196 $ (598) $ 496 $ (1,340) Net income (loss) per share attributable to common stockholders: Basic $ 0.06 $ 0.01 $ 0.02 $ 0.00 $ 0.01 $ (0.01) $ 0.01 $ (0.02) Diluted $ 0.05 $ 0.01 $ 0.02 $ 0.00 $ 0.01 $ (0.01) $ 0.00 $ (0.02) |
Summary of Business and Signi_4
Summary of Business and Significant Accounting Policies - Additional Information (Details) $ / shares in Units, $ in Thousands | Apr. 30, 2019USD ($) | Apr. 23, 2019USD ($)$ / sharesshares | Apr. 18, 2019USD ($)$ / sharesshares | Jan. 31, 2019USD ($)shares | Jan. 31, 2018 | Oct. 31, 2019USD ($) | Jan. 31, 2020USD ($)vote | Jan. 31, 2019USD ($) | Jan. 31, 2018USD ($) | Feb. 01, 2019USD ($) |
Summary Of Business And Significant Accounting Policies [Line Items] | ||||||||||
Stockholders' equity note, stock split, conversion ratio | 4 | |||||||||
Stockholders' equity note, stock split, conversion ratio, shares (in shares) | shares | 4 | |||||||||
Sales and marketing | $ 340,646 | $ 185,821 | $ 82,707 | |||||||
Proceeds from international employee stock sales to be remitted to employees and tax authorities | $ 48,500 | 48,547 | 0 | 0 | ||||||
Purchase of equity investment | $ 3,000 | 3,000 | 0 | 0 | ||||||
Equity investment | $ 0 | 3,000 | 0 | |||||||
Advertising expense | $ 42,000 | 36,100 | 17,100 | |||||||
Number of operating segments | vote | 1 | |||||||||
Operating lease, total ROU assets | $ 68,608 | |||||||||
Operating lease, total liabilities | $ 72,467 | |||||||||
Revenue from Contract with Customer | Professional Services Fees Concentration Risk | ||||||||||
Summary Of Business And Significant Accounting Policies [Line Items] | ||||||||||
Percentage of revenue | 2.00% | |||||||||
Minimum | ||||||||||
Summary Of Business And Significant Accounting Policies [Line Items] | ||||||||||
Property, plant and equipment, useful life | 3 years | |||||||||
Maximum | ||||||||||
Summary Of Business And Significant Accounting Policies [Line Items] | ||||||||||
Property, plant and equipment, useful life | 5 years | |||||||||
Convertible Debt | ||||||||||
Summary Of Business And Significant Accounting Policies [Line Items] | ||||||||||
Share price per share (in dollars per share) | $ / shares | $ 36 | |||||||||
Leasehold Improvements | Maximum | ||||||||||
Summary Of Business And Significant Accounting Policies [Line Items] | ||||||||||
Property, plant and equipment, useful life | 5 years | |||||||||
Software | ||||||||||
Summary Of Business And Significant Accounting Policies [Line Items] | ||||||||||
Property, plant and equipment, useful life | 3 years | |||||||||
Property, plant and equipment, additions | $ 3,100 | 2,500 | $ 800 | |||||||
Accounting Standards Update 2016-02 | ||||||||||
Summary Of Business And Significant Accounting Policies [Line Items] | ||||||||||
Operating lease, total ROU assets | $ 40,500 | |||||||||
Operating lease, total liabilities | $ 43,000 | |||||||||
Other Assets, Non-current | ||||||||||
Summary Of Business And Significant Accounting Policies [Line Items] | ||||||||||
Capitalized deferred offering costs within other assets, non-current | $ 2,400 | $ 2,400 | ||||||||
Class A Common Stock | Convertible Debt | ||||||||||
Summary Of Business And Significant Accounting Policies [Line Items] | ||||||||||
Share price per share (in dollars per share) | $ / shares | $ 36 | |||||||||
Over-Allotment Option | ||||||||||
Summary Of Business And Significant Accounting Policies [Line Items] | ||||||||||
Deferred offering costs, reclassified to stockholders' equity | $ (6,400) | |||||||||
Over-Allotment Option | Class A Common Stock | ||||||||||
Summary Of Business And Significant Accounting Policies [Line Items] | ||||||||||
Shares issued (in shares) | shares | 9,911,434 | 3,130,435 | ||||||||
Shares issued, price per share (in dollars per share) | $ / shares | $ 36 | $ 36 | ||||||||
Net proceeds from shares issued | $ 340,800 | $ 107,100 | ||||||||
Initial public offering | Class A Common Stock | ||||||||||
Summary Of Business And Significant Accounting Policies [Line Items] | ||||||||||
Convertible securities converted to common stock (in shares) | shares | 426,223 | |||||||||
Initial public offering | Class B Common Stock | ||||||||||
Summary Of Business And Significant Accounting Policies [Line Items] | ||||||||||
Convertible securities converted to common stock (in shares) | shares | 152,665,804 | |||||||||
Private Placement | Class A Common Stock | ||||||||||
Summary Of Business And Significant Accounting Policies [Line Items] | ||||||||||
Shares issued (in shares) | shares | 2,777,777 | |||||||||
Share price per share (in dollars per share) | $ / shares | $ 36 | |||||||||
Aggregate proceeds from shares issued | $ 100,000 |
Summary of Business and Signi_5
Summary of Business and Significant Accounting Policies - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 57,138 | $ 37,275 |
Americas | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 48,519 | 26,048 |
APAC | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 7,464 | 8,928 |
EMEA | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 1,155 | $ 2,299 |
Revenue Recognition - Summary D
Revenue Recognition - Summary Disaggregation of Revenue by Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 188,251 | $ 166,593 | $ 145,826 | $ 121,988 | $ 105,800 | $ 90,121 | $ 74,526 | $ 60,070 | $ 622,658 | $ 330,517 | $ 151,478 |
Revenue from Contract with Customer | Geographic Concentration Risk | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percentage of Revenue | 100.00% | 100.00% | 100.00% | ||||||||
Americas | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 500,622 | $ 270,132 | $ 125,428 | ||||||||
Americas | Revenue from Contract with Customer | Geographic Concentration Risk | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percentage of Revenue | 81.00% | 82.00% | 83.00% | ||||||||
APAC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 51,152 | $ 27,720 | $ 13,652 | ||||||||
APAC | Revenue from Contract with Customer | Geographic Concentration Risk | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percentage of Revenue | 8.00% | 8.00% | 9.00% | ||||||||
EMEA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 70,884 | $ 32,665 | $ 12,398 | ||||||||
EMEA | Revenue from Contract with Customer | Geographic Concentration Risk | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percentage of Revenue | 11.00% | 10.00% | 8.00% |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |||
Unbilled accounts receivable | $ 12.5 | $ 7.2 | |
Revenue recognized included in deferred revenue | $ 119.1 | $ 50.3 | $ 21.3 |
Capitalized contract cost, amortization period | 3 years |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligation (Details) $ in Millions | Jan. 31, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 604.1 |
Billed consideration | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | 230.5 |
Unbilled consideration | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 373.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-02-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation percentage | 62.00% |
Revenue remaining performance obligation, expected timing of satisfaction period | 12 months |
Revenue Recognition - Deferred
Revenue Recognition - Deferred Contract Acquisition Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2020 | Jan. 31, 2019 | |
Capitalized Contract Cost, Net | |||||
Beginning balance | $ 55,516 | $ 30,586 | |||
Additions to deferred contract acquisition costs | 72,715 | 45,769 | |||
Amortization of deferred contract acquisition costs | (37,101) | (20,839) | $ (9,023) | ||
Ending balance | 91,130 | 55,516 | 30,586 | ||
Deferred contract acquisition costs, current | $ 44,885 | $ 26,453 | |||
Deferred contract acquisition costs, noncurrent | 46,245 | 29,063 | |||
Total deferred contract acquisition costs | $ 91,130 | $ 55,516 | $ 30,586 | $ 91,130 | $ 55,516 |
Marketable Securities - Summary
Marketable Securities - Summary Marketable Securities (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Marketable Securities [Line Items] | ||
Amortized Cost | $ 571,252 | $ 112,912 |
Gross Unrealized Gains | 869 | 0 |
Gross Unrealized Losses | (61) | (135) |
Estimated Fair Value | 572,060 | 112,777 |
Commercial paper | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 37,894 | 1,243 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 37,894 | 1,243 |
Corporate bonds | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 53,267 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (53) | |
Estimated Fair Value | 53,214 | |
Agency bonds | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 141,157 | 32,675 |
Gross Unrealized Gains | 49 | 0 |
Gross Unrealized Losses | (43) | (71) |
Estimated Fair Value | 141,163 | 32,604 |
Corporate and other debt securities | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 320,407 | |
Gross Unrealized Gains | 775 | |
Gross Unrealized Losses | (16) | |
Estimated Fair Value | 321,166 | |
U.S. government agency securities | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 71,794 | 24,028 |
Gross Unrealized Gains | 45 | 0 |
Gross Unrealized Losses | (2) | (11) |
Estimated Fair Value | $ 71,837 | 24,017 |
Treasury bills | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 1,699 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Value | $ 1,699 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |||
Debt Securities, Available-for-sale, Realized Gain (Loss) | $ 0 | $ 0 | $ 0 |
Marketable Securities - Summa_2
Marketable Securities - Summary of Contractual Maturities of Marketable Securities (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Less than one year | $ 315,900 | $ 85,077 |
Due in one to five years | 256,160 | 27,700 |
Total | $ 572,060 | $ 112,777 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Instruments Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Financial Assets: | ||
Marketable securities | $ 572,060 | $ 112,777 |
Commercial paper | ||
Financial Assets: | ||
Marketable securities | 37,894 | 1,243 |
Corporate bonds | ||
Financial Assets: | ||
Marketable securities | 53,214 | |
Agency bonds | ||
Financial Assets: | ||
Marketable securities | 141,163 | 32,604 |
Corporate and other debt securities | ||
Financial Assets: | ||
Marketable securities | 321,166 | |
U.S. government agency securities | ||
Financial Assets: | ||
Marketable securities | 71,837 | 24,017 |
Treasury bills | ||
Financial Assets: | ||
Marketable securities | 1,699 | |
Fair Value, Recurring Basis | ||
Financial Assets: | ||
Cash equivalents | 111,479 | 78 |
Marketable securities | 572,060 | 112,777 |
Total financial assets | 115,199 | |
Financial Liabilities: | ||
Convertible promissory notes – derivative liabilities included in other liabilities, noncurrent | 163 | |
Total financial liabilities | 163 | |
Fair Value, Recurring Basis | Commercial paper | ||
Financial Assets: | ||
Marketable securities | 37,894 | 1,243 |
Fair Value, Recurring Basis | Corporate bonds | ||
Financial Assets: | ||
Marketable securities | 53,214 | |
Fair Value, Recurring Basis | Agency bonds | ||
Financial Assets: | ||
Marketable securities | 141,163 | 32,604 |
Fair Value, Recurring Basis | Corporate and other debt securities | ||
Financial Assets: | ||
Marketable securities | 321,166 | |
Fair Value, Recurring Basis | U.S. government agency securities | ||
Financial Assets: | ||
Marketable securities | 71,837 | 24,017 |
Fair Value, Recurring Basis | Treasury bills | ||
Financial Assets: | ||
Marketable securities | 1,699 | |
Fair Value, Recurring Basis | Certificates of deposit | ||
Financial Assets: | ||
Certificate of deposit included in prepaid expenses and other current and noncurrent assets | 100 | 200 |
Other assets, noncurrent | 2,301 | 2,144 |
Total financial assets | 685,940 | |
Fair Value, Recurring Basis | Money market funds | ||
Financial Assets: | ||
Cash equivalents | 96,486 | 78 |
Fair Value, Recurring Basis | Commercial paper | ||
Financial Assets: | ||
Cash equivalents | 4,994 | |
Fair Value, Recurring Basis | Agency bonds | ||
Financial Assets: | ||
Cash equivalents | 9,999 | |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 1 | ||
Financial Assets: | ||
Cash equivalents | 96,486 | 78 |
Marketable securities | 0 | 0 |
Total financial assets | 96,486 | 78 |
Financial Liabilities: | ||
Convertible promissory notes – derivative liabilities included in other liabilities, noncurrent | 0 | |
Total financial liabilities | 0 | |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 1 | Commercial paper | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 1 | Corporate bonds | ||
Financial Assets: | ||
Marketable securities | 0 | |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 1 | Agency bonds | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 1 | Corporate and other debt securities | ||
Financial Assets: | ||
Marketable securities | 0 | |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 1 | U.S. government agency securities | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 1 | Treasury bills | ||
Financial Assets: | ||
Marketable securities | 0 | |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 1 | Certificates of deposit | ||
Financial Assets: | ||
Certificate of deposit included in prepaid expenses and other current and noncurrent assets | 0 | 0 |
Other assets, noncurrent | 0 | 0 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 1 | Money market funds | ||
Financial Assets: | ||
Cash equivalents | 96,486 | 78 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 1 | Commercial paper | ||
Financial Assets: | ||
Cash equivalents | 0 | |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 1 | Agency bonds | ||
Financial Assets: | ||
Cash equivalents | 0 | |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 2 | ||
Financial Assets: | ||
Cash equivalents | 14,993 | 0 |
Marketable securities | 572,060 | 112,777 |
Total financial assets | 589,454 | 115,121 |
Financial Liabilities: | ||
Convertible promissory notes – derivative liabilities included in other liabilities, noncurrent | 0 | |
Total financial liabilities | 0 | |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 2 | Commercial paper | ||
Financial Assets: | ||
Marketable securities | 37,894 | 1,243 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 2 | Corporate bonds | ||
Financial Assets: | ||
Marketable securities | 53,214 | |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 2 | Agency bonds | ||
Financial Assets: | ||
Marketable securities | 141,163 | 32,604 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 2 | Corporate and other debt securities | ||
Financial Assets: | ||
Marketable securities | 321,166 | |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 2 | U.S. government agency securities | ||
Financial Assets: | ||
Marketable securities | 71,837 | 24,017 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 2 | Treasury bills | ||
Financial Assets: | ||
Marketable securities | 1,699 | |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 2 | Certificates of deposit | ||
Financial Assets: | ||
Certificate of deposit included in prepaid expenses and other current and noncurrent assets | 100 | 200 |
Other assets, noncurrent | 2,301 | 2,144 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 2 | Money market funds | ||
Financial Assets: | ||
Cash equivalents | 0 | 0 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 2 | Commercial paper | ||
Financial Assets: | ||
Cash equivalents | 4,994 | |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 2 | Agency bonds | ||
Financial Assets: | ||
Cash equivalents | 9,999 | |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 3 | ||
Financial Assets: | ||
Cash equivalents | 0 | 0 |
Marketable securities | 0 | 0 |
Total financial assets | 0 | 0 |
Financial Liabilities: | ||
Convertible promissory notes – derivative liabilities included in other liabilities, noncurrent | 163 | |
Total financial liabilities | 163 | |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 3 | Commercial paper | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 3 | Corporate bonds | ||
Financial Assets: | ||
Marketable securities | 0 | |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 3 | Agency bonds | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 3 | Corporate and other debt securities | ||
Financial Assets: | ||
Marketable securities | 0 | |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 3 | U.S. government agency securities | ||
Financial Assets: | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 3 | Treasury bills | ||
Financial Assets: | ||
Marketable securities | 0 | |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 3 | Certificates of deposit | ||
Financial Assets: | ||
Certificate of deposit included in prepaid expenses and other current and noncurrent assets | 0 | 0 |
Other assets, noncurrent | 0 | 0 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 3 | Money market funds | ||
Financial Assets: | ||
Cash equivalents | 0 | $ 0 |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 3 | Commercial paper | ||
Financial Assets: | ||
Cash equivalents | 0 | |
Fair Value, Recurring Basis | Fair Value, Inputs, Level 3 | Agency bonds | ||
Financial Assets: | ||
Cash equivalents | $ 0 |
Balance Sheet Components - Prep
Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Restricted cash from international employee stock sales | $ 48,547 | $ 0 |
Prepaid expenses | 22,320 | 9,263 |
Other | 4,141 | 989 |
Prepaid expenses and other current assets | $ 75,008 | $ 10,252 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 84,394 | $ 48,743 |
Less: accumulated depreciation and amortization | (27,256) | (11,468) |
Property and equipment, net | 57,138 | 37,275 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 51,375 | 32,515 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 18,215 | 7,660 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 10,855 | 6,575 |
Furniture and Fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 3,949 | $ 1,993 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Depreciation and amortization | $ 16,449 | $ 7,008 | $ 2,786 |
Balance Sheet Components - Othe
Balance Sheet Components - Other Assets, Noncurrent (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts receivable, noncurrent | $ 9,011 | $ 3,264 |
Equity investment | 3,000 | 0 |
Other | 10,321 | 8,244 |
Other assets, noncurrent | $ 22,332 | $ 11,508 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Liabilities to employees and tax authorities from international employee stock sales | $ 49,287 | $ 0 |
Accrued compensation and benefits | 36,732 | 12,004 |
Accrued expenses | 17,475 | 13,596 |
Operating lease liabilities, current | 7,675 | 0 |
Other | 11,523 | 6,656 |
Accrued expenses and other current liabilities | $ 122,692 | $ 32,256 |
Balance Sheet Components - Sc_3
Balance Sheet Components - Schedule of Other Liabilities Non Current (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrual for taxes other than income taxes, noncurrent | $ 33,957 | $ 20,817 |
Convertible promissory notes, net of debt discount | 0 | 14,858 |
Other | 2,329 | 3,785 |
Other liabilities, noncurrent | $ 36,286 | $ 39,460 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Purchase obligation | $ 86,100 | |
Accrual for taxes other than income taxes | 37,700 | $ 22,000 |
Accrual for taxes other than income taxes, current | 3,700 | 1,200 |
Accrual for taxes other than income taxes, noncurrent | $ 33,957 | $ 20,817 |
Convertible Promissory Notes -
Convertible Promissory Notes - Additional Information (Details) - USD ($) | Apr. 23, 2019 | Oct. 31, 2018 | Jan. 31, 2020 |
Convertible Debt | |||
Debt Instrument [Line Items] | |||
Debt instrument term | 3 years | ||
Share price per share (in dollars per share) | $ 36 | ||
Loss on derivative instruments, pretax | $ 200,000 | ||
Write off of deferred debt issuance cost | $ 100,000 | ||
Class A Common Stock | Convertible Debt | |||
Debt Instrument [Line Items] | |||
Share price per share (in dollars per share) | $ 36 | ||
Class A Common Stock | Initial public offering | |||
Debt Instrument [Line Items] | |||
Conversion of convertible preferred stock to common stock upon initial public offering (in shares) | 426,223 | ||
Dropbox | Convertible Debt | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 5,000,000 | ||
Interest rate percentage | 2.75% | ||
Atlassian | Convertible Debt | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 10,000,000 | ||
Interest rate percentage | 5.00% |
Operating Leases - Additional I
Operating Leases - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Jan. 31, 2020USD ($)lease | Jan. 31, 2019USD ($) | Jan. 31, 2018USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Number of operating lease options | lease | 1 | ||
Operating lease, expense | $ 9.7 | ||
Weighted-average remaining lease term | 7 years 6 months | ||
Weighted-average discount rate | 5.10% | ||
Operating lease expense | $ 7.2 | ||
Rent expense | $ 3.3 | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lease contractual period | 10 years |
Operating Leases - Schedule of
Operating Leases - Schedule of Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Assets | ||
Operating lease right-of-use assets | $ 68,608 | |
Liabilities: | ||
Accrued expenses and other current liabilities | 7,675 | $ 0 |
Operating lease liabilities, noncurrent | 64,792 | |
Total operating lease liabilities | $ 72,467 |
Operating Leases - Schedule o_2
Operating Leases - Schedule of Supplemental Cash flow Information (Details) $ in Thousands | 12 Months Ended |
Jan. 31, 2020USD ($) | |
Leases [Abstract] | |
Cash payments included in the measurement of our operating lease liabilities | $ 9,774 |
Operating lease right-of-use assets recognized in exchange for new operating lease obligations | $ 34,993 |
Operating Leases - Schedule o_3
Operating Leases - Schedule of Future Minimum Lease Payments included in Measurement of Operating Lease Liabilities (Details) $ in Thousands | Jan. 31, 2020USD ($) |
Operating Leases Future Minimum Lease Payments [Abstract] | |
2021 | $ 11,170 |
2022 | 12,191 |
2023 | 12,177 |
2024 | 11,541 |
2025 | 11,348 |
Thereafter | 29,383 |
Total operating lease payments | 87,810 |
Less: imputed interest | (15,343) |
Total operating lease liabilities | $ 72,467 |
Operating Leases - Schedule o_4
Operating Leases - Schedule of Future Minimum Payments Related to Operating Leases (Details) $ in Thousands | Jan. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 7,609 |
2021 | 7,837 |
2022 | 7,888 |
2023 | 7,514 |
2024 | 7,174 |
Thereafter | 18,635 |
Total future minimum payments | $ 56,657 |
Convertible Preferred Stock, _3
Convertible Preferred Stock, Stockholders’ Equity (Deficit) and Equity Incentive Plan - Schedule of Stock by Class (Details) - USD ($) | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 |
Class of Stock [Line Items] | ||||
Convertible preferred stock, shares authorized (in shares) | 0 | 158,104,540 | ||
Convertible preferred stock, shares issued (in shares) | 0 | 152,665,804 | ||
Convertible preferred stock, shares outstanding (in shares) | 0 | 152,665,804 | 152,665,804 | 154,031,604 |
Convertible preferred stock, aggregate liquidation preference | $ 160,724 | |||
Series A Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Convertible preferred stock, shares authorized (in shares) | 67,083,500 | |||
Convertible preferred stock, shares issued (in shares) | 61,717,700 | |||
Convertible preferred stock, shares outstanding (in shares) | 61,717,700 | |||
Convertible preferred stock, aggregate liquidation preference | $ 9,258 | |||
Series B Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Convertible preferred stock, shares authorized (in shares) | 25,857,784 | |||
Convertible preferred stock, shares issued (in shares) | 25,857,784 | |||
Convertible preferred stock, shares outstanding (in shares) | 25,857,784 | |||
Convertible preferred stock, aggregate liquidation preference | $ 6,500 | |||
Series C Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Convertible preferred stock, shares authorized (in shares) | 34,363,256 | |||
Convertible preferred stock, shares issued (in shares) | 34,363,256 | |||
Convertible preferred stock, shares outstanding (in shares) | 34,363,256 | |||
Convertible preferred stock, aggregate liquidation preference | $ 30,000 | |||
Series D Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Convertible preferred stock, shares authorized (in shares) | 30,800,000 | |||
Convertible preferred stock, shares issued (in shares) | 30,727,064 | |||
Convertible preferred stock, shares outstanding (in shares) | 30,727,064 | |||
Convertible preferred stock, aggregate liquidation preference | $ 114,966 |
Convertible Preferred Stock, _4
Convertible Preferred Stock, Stockholders’ Equity (Deficit) and Equity Incentive Plan - Additional Information (Details) | 1 Months Ended | 12 Months Ended | |||||||
Apr. 30, 2019USD ($)voteshares | May 31, 2017USD ($)$ / sharesshares | Jan. 31, 2020USD ($)$ / sharesshares | Jan. 31, 2019USD ($)$ / sharesshares | Jan. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2011 | Apr. 23, 2019USD ($)$ / sharesshares | Nov. 30, 2018vote$ / sharesshares | Jan. 31, 2017USD ($)shares | |
Class of Stock [Line Items] | |||||||||
Convertible preferred stock, shares outstanding (in shares) | 0 | 152,665,804 | 152,665,804 | 154,031,604 | |||||
Conversion of convertible preferred stock to common stock upon initial public offering | $ | $ 0 | $ 159,552,000 | $ 159,552,000 | $ 159,757,000 | |||||
Convertible preferred stock, shares issued (in shares) | 0 | 152,665,804 | |||||||
Undesignated preferred stock shares authorized (in shares) | 200,000,000 | 0 | |||||||
Undesignated referred stock par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||||||
Temporary equity repurchased during period (in shares) | 1,365,800 | ||||||||
Repurchase of Series A convertible preferred stock | $ | $ (205,000) | ||||||||
Common stock, conversion features, term | 6 months | ||||||||
Initial offering period | 15 years | ||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||||||
Stock options outstanding (in shares) | 16,833,009 | 35,064,465 | |||||||
Weighted average grant date fair value of options for employees (in dollars per share) | $ / shares | $ 25.17 | $ 6.28 | $ 0.67 | ||||||
Expected unrecognized stock-based compensation expenses related to outstanding unvested stock options | $ | $ 76,600,000 | ||||||||
Number of shares available for future issuance (in shares) | 60,911,996 | 189,578,369 | |||||||
Number of purchase periods | vote | 4 | ||||||||
Proceeds for unvested shares of common stock | $ | $ 1,200,000 | $ 1,800,000 | |||||||
Stock-based compensation expense | $ | 73,109,000 | $ 8,941,000 | $ 10,329,000 | ||||||
RSUs | |||||||||
Class of Stock [Line Items] | |||||||||
Unrecognized stock-based compensation expenses | $ | $ 142,800,000 | ||||||||
Unrecognized stock-based compensation excepted to be recognized over a weighted-average period | 3 years 7 months 6 days | ||||||||
Number of shares available for future issuance (in shares) | 1,964,668 | 0 | |||||||
Purchase rights committed under the ESPP | |||||||||
Class of Stock [Line Items] | |||||||||
Unrecognized stock-based compensation expenses | $ | $ 55,700,000 | ||||||||
Unrecognized stock-based compensation excepted to be recognized over a weighted-average period | 1 year 4 months 24 days | ||||||||
Number of shares available for future issuance (in shares) | 1,323,662 | 0 | |||||||
Payroll deductions to participate in plan | 20.00% | ||||||||
Maximum number of shares per employee (in shares) | 3,000 | ||||||||
Consecutive offering period | 27 months | ||||||||
Stock options | |||||||||
Class of Stock [Line Items] | |||||||||
Unrecognized stock-based compensation excepted to be recognized over a weighted-average period | 2 years 9 months 18 days | ||||||||
Number of shares available for future issuance (in shares) | 16,833,009 | 35,064,465 | |||||||
2011 Plan | |||||||||
Class of Stock [Line Items] | |||||||||
Vesting period of awards | 4 years | ||||||||
Term of 2019 stock plan | 5 years | ||||||||
Number of shares authorized (in shares) | 71,240,000 | ||||||||
Stock plan rate | 10.00% | ||||||||
2011 Plan | Maximum | |||||||||
Class of Stock [Line Items] | |||||||||
Term of 2019 stock plan | 10 years | ||||||||
2019 Plan | |||||||||
Class of Stock [Line Items] | |||||||||
Shares reserved for issuance, percentage | 5.00% | ||||||||
2019 Plan | Maximum | |||||||||
Class of Stock [Line Items] | |||||||||
Term of 2019 stock plan | 10 years | ||||||||
2019 Employee Stock Purchase Plan | Purchase rights committed under the ESPP | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares available for future issuance (in shares) | 7,186,070 | 0 | |||||||
Percent of outstanding stock, maximum | 1.00% | ||||||||
Number of additional shares allowable under the plan (in shares) | 7,500,000 | ||||||||
Share-based Compensation Arrangement By Share-based Payment Award, Percentage Voting Power Excluded From Participating In Plan | 5.00% | ||||||||
Initial public offering | |||||||||
Class of Stock [Line Items] | |||||||||
Convertible preferred stock, shares outstanding (in shares) | 152,665,804 | ||||||||
Conversion of convertible preferred stock to common stock upon initial public offering | $ | $ 159,600,000 | ||||||||
Undesignated preferred stock shares authorized (in shares) | 200,000,000 | ||||||||
Undesignated referred stock par value (in dollars per share) | $ / shares | $ 0.001 | ||||||||
Third-Party Stock Transaction | Chief Executive Officer | |||||||||
Class of Stock [Line Items] | |||||||||
Shares issued, price per share (in dollars per share) | $ / shares | $ 3.74 | ||||||||
Stock-based compensation expense | $ | $ 8,600,000 | ||||||||
Shares issued (in shares) | 2,899,136 | ||||||||
Series A Preferred Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Convertible preferred stock, shares outstanding (in shares) | 61,717,700 | ||||||||
Convertible preferred stock, shares issued (in shares) | 61,717,700 | ||||||||
Temporary equity repurchased during period (in shares) | 1,365,800 | ||||||||
Repurchase of Series A convertible preferred stock | $ | $ 4,600,000 | ||||||||
Class A Common Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock number of votes per share | vote | 1 | ||||||||
Common stock, shares issued (in shares) | 123,391,114 | 0 | |||||||
Common stock, shares authorized (in shares) | 2,000,000,000 | 320,000,000 | 320,000,000 | ||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||||||
Class A Common Stock | Purchase rights committed under the ESPP | |||||||||
Class of Stock [Line Items] | |||||||||
Percentage of purchase price of common stock to fair market value of common stock on offering or purchase date | 85.00% | ||||||||
ESPP excess rate purchase right, value | $ | $ 25,000 | ||||||||
Shares issued of common stock (in shares) | 490,268 | ||||||||
Class A Common Stock | 2011 Plan | |||||||||
Class of Stock [Line Items] | |||||||||
Other shares authorized (in shares) | 24,300,889 | ||||||||
Class A Common Stock | 2019 Plan | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares authorized (in shares) | 58,300,889 | ||||||||
Number of additional shares authorized under the plan (in shares) | 34,000,000 | ||||||||
Class A Common Stock | 2019 Employee Stock Purchase Plan | Purchase rights committed under the ESPP | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares available for future issuance (in shares) | 9,000,000 | ||||||||
Class B Common Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock number of votes per share | vote | 10 | ||||||||
Common stock, shares issued (in shares) | 155,336,747 | ||||||||
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 | 300,000,000 | ||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||||||
Number of common stock subject to repurchase (in shares) | 466,819 | 1,261,230 | |||||||
Common stock subject to repurchase or cancellation (in dollars per share) | $ / shares | $ 2.58 | ||||||||
Weighted average price per share (in dollars per share) | $ / shares | $ 1.41 | ||||||||
Class B Common Stock | 2011 Plan | |||||||||
Class of Stock [Line Items] | |||||||||
Stock options outstanding (in shares) | 35,064,465 | ||||||||
Number of shares available for grant (in shares) | 1,848,100 |
Convertible Preferred Stock, _5
Convertible Preferred Stock, Stockholders’ Equity (Deficit) and Equity Incentive Plan - Schedule of Stock by Class Reserved for Future Issuance (Details) - shares | Jan. 31, 2020 | Jan. 31, 2019 |
Class of Stock [Line Items] | ||
Number of shares available for future issuance (in shares) | 60,911,996 | 189,578,369 |
Convertible preferred stock | ||
Class of Stock [Line Items] | ||
Number of shares available for future issuance (in shares) | 0 | 152,665,804 |
Stock options | ||
Class of Stock [Line Items] | ||
Number of shares available for future issuance (in shares) | 16,833,009 | 35,064,465 |
RSUs | ||
Class of Stock [Line Items] | ||
Number of shares available for future issuance (in shares) | 1,964,668 | 0 |
ESPP | ||
Class of Stock [Line Items] | ||
Number of shares available for future issuance (in shares) | 1,323,662 | 0 |
2011 and 2019 Plan | ||
Class of Stock [Line Items] | ||
Number of shares available for future issuance (in shares) | 33,604,587 | 1,848,100 |
2019 Employee Stock Purchase Plan | ESPP | ||
Class of Stock [Line Items] | ||
Number of shares available for future issuance (in shares) | 7,186,070 | 0 |
Convertible Preferred Stock, _6
Convertible Preferred Stock, Stockholders’ Equity (Deficit) and Equity Incentive Plan - Summary of Stock Option Activity Under Equity Incentive Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Outstanding Stock Options | |||
Beginning balance (in shares) | 35,064,465 | ||
Granted (in shares) | 1,576,150 | ||
Exercised (in shares) | (19,003,652) | ||
Cancelled/forfeited/expired (in shares) | (803,954) | ||
Ending balance (in shares) | 16,833,009 | 35,064,465 | |
Outstanding stock options, vested (in shares) | 7,248,393 | ||
Weighted- Average Exercise Price | |||
Beginning balance (in dollars per share) | $ 1.48 | ||
Granted (in dollars per share) | 36.86 | ||
Exercised (in dollars per share) | 0.49 | ||
Cancelled/forfeited/expired (in dollars per share) | 5.15 | ||
Ending balance (in dollars per share) | 5.73 | $ 1.48 | |
Weighted average exercise price, vested and exercisable (in shares) | $ 1.78 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Weighted-average remaining contractual life (years) | 7 years 7 months 6 days | 6 years 9 months 18 days | |
Weighted-average remaining contractual life, vested and exercisable | 6 years 9 months 18 days | ||
Aggregate intrinsic value | $ 1,191,881 | $ 534,572 | |
Aggregate intrinsic value, exercised | 767,336 | $ 60,800 | $ 2,500 |
Aggregate intrinsic value, vested and exercisable | $ 540,222 |
Convertible Preferred Stock, _7
Convertible Preferred Stock, Stockholders’ Equity (Deficit) and Equity Incentive Plan - Schedule of Assumptions for Employee Options at Grant Dates (Details) - Stock options | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility, minimum | 49.90% | 44.60% | 47.70% |
Expected volatility, maximum | 53.20% | 48.20% | 52.00% |
Risk-free interest rate, minimum | 1.60% | 2.60% | 1.80% |
Risk-free interest rate, maximum | 2.50% | 3.10% | 2.30% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 5 years | 5 years | 5 years 7 months 6 days |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 6 years 1 month 6 days | 6 years 2 months 12 days | 6 years 8 months 12 days |
Convertible Preferred Stock, _8
Convertible Preferred Stock, Stockholders’ Equity (Deficit) and Equity Incentive Plan - Summary of Restricted Stock Units Activity Under Equity Incentive Plan (Details) - RSUs | 12 Months Ended |
Jan. 31, 2020$ / sharesshares | |
Unvested RSUs | |
Beginning balance (in units) | shares | 0 |
Granted (in units) | shares | 2,048,248 |
Vested (in units) | shares | (31,649) |
Cancelled/forfeited (in units) | shares | (51,931) |
Ending balance (in units) | shares | 1,964,668 |
Weighted-Average Grant Date Fair Value Per Share | |
Beginning balance (in dollars per unit) | $ / shares | $ 0 |
Granted (in dollars per unit) | $ / shares | 79.22 |
Vested (in dollars per unit) | $ / shares | 78.23 |
Cancelled/forfeited (in dollars per unit) | $ / shares | 84 |
Ending balance (in dollars per unit) | $ / shares | $ 79.11 |
Convertible Preferred Stock, _9
Convertible Preferred Stock, Stockholders’ Equity (Deficit) and Equity Incentive Plan - Fair Value of ESPP Purchase Rights Assumptions (Details) - Purchase rights committed under the ESPP | 3 Months Ended | 12 Months Ended |
Jan. 31, 2020 | Jan. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility, minimum | 40.30% | |
Expected volatility, maximum | 56.20% | |
Risk-free interest rate, minimum | 1.50% | |
Risk-free interest rate, maximum | 2.50% | |
Expected dividend yield | 0.00% | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (years) | 6 months | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (years) | 2 years 1 month 6 days |
Convertible Preferred Stock,_10
Convertible Preferred Stock, Stockholders’ Equity (Deficit) and Equity Incentive Plan - Summary of Stock-based Compensation Expense by Line Item (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 73,109 | $ 8,941 | $ 10,329 |
Cost of revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 7,860 | 1,119 | 204 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 11,645 | 1,369 | 360 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 41,465 | 3,540 | 812 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 12,139 | $ 2,913 | $ 8,953 |
Income Taxes - Components of th
Income Taxes - Components of the Net Income (Loss) before Provision of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 16,268 | $ (204) | $ (3,782) |
Foreign | 10,094 | 8,553 | 264 |
Total | $ 26,362 | $ 8,349 | $ (3,518) |
Income Taxes - Schedule of Curr
Income Taxes - Schedule of Current and Deferred Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Current: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 14 | 80 | 46 |
Foreign | 2,226 | 685 | 258 |
Total current income tax expense | 2,240 | 765 | 304 |
Deferred: | |||
Federal | 0 | 0 | 0 |
State | 0 | 0 | 0 |
Foreign | (1,183) | 0 | 0 |
Deferred income tax expense (benefit), total | (1,183) | 0 | 0 |
Total provision for income taxes | $ 1,057 | $ 765 | $ 304 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Tax at federal statutory rate | $ 5,536 | $ 1,764 | $ (1,157) |
State taxes | 14 | 67 | 45 |
Foreign rate differential | (2,096) | (1,627) | (26) |
Stock-based compensation | (32,070) | 1,662 | 3,272 |
Permanent items | 1,009 | 809 | 117 |
Research and development credits | (2,808) | (289) | (150) |
Tax uncertainties | 1,019 | 515 | 516 |
Change in valuation allowance | 30,932 | (1,438) | (1,537) |
Change in federal tax rate | 0 | 0 | (881) |
Other | (479) | (698) | 105 |
Total provision for income taxes | $ 1,057 | $ 765 | $ 304 |
Effective tax rate | 4.00% | 9.20% | (8.60%) |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Income Tax Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Deferred Tax Assets, Net [Abstract] | ||
Net operating loss carryforwards | $ 37,507 | $ 6,517 |
Research and development credit carryforwards | 5,701 | 972 |
Stock-based compensation | 4,145 | 133 |
Accruals and reserves | 11,586 | 6,856 |
Deferred revenue | 5,234 | 2,646 |
Operating lease liabilities | 17,716 | 0 |
Total deferred tax assets net of valuation allowance | 81,889 | 17,124 |
Valuation allowance | (36,353) | (877) |
Total deferred tax assets net of valuation allowance | 45,536 | 16,247 |
Deferred Tax Liabilities, Net [Abstract] | ||
Property and equipment | (6,744) | (4,779) |
Deferred commissions | (21,156) | (11,468) |
Operating right-of-use assets | (16,453) | 0 |
Total deferred tax liabilities | (44,353) | (16,247) |
Net deferred tax assets | $ 1,183 | $ 0 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | |||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Tax Credit Carryforward [Line Items] | ||||
Increase (decrease) of valuation allowance | $ 35,500,000 | $ (2,300,000) | $ (3,100,000) | |
Unrecognized tax benefits | 8,106,000 | 2,778,000 | $ 1,976,000 | $ 1,205,000 |
Unrecognized tax benefits, if recognized, would impact effective tax rate | 2,000,000 | |||
Interest and penalties | 300,000 | $ 0 | ||
Federal Income Tax | ||||
Tax Credit Carryforward [Line Items] | ||||
Operating loss carryforward | 148,000,000 | |||
Federal Income Tax | Research and Development Credit Carryforward | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforward | 6,700,000 | |||
State Income Tax | ||||
Tax Credit Carryforward [Line Items] | ||||
Operating loss carryforward | 88,200,000 | |||
State Income Tax | Research and Development Credit Carryforward | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforward | 5,900,000 | |||
Foreign Tax | ||||
Tax Credit Carryforward [Line Items] | ||||
Operating loss carryforward | $ 6,800,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Position (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $ 2,778 | $ 1,976 | $ 1,205 |
Increases related to current years’ tax positions | 5,328 | 802 | 771 |
Ending Balance | $ 8,106 | $ 2,778 | $ 1,976 |
Net Income (Loss) Per Share A_3
Net Income (Loss) Per Share Attributable to Common Stockholders - Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Earnings Per Share, Basic [Abstract] | |||||||||||
Net income (loss) | $ 25,305 | $ 7,584 | $ (3,822) | ||||||||
Distributed Earnings | 0 | 0 | 4,405 | ||||||||
Less: undistributed earnings attributable to participating securities | 3,555 | 7,584 | 0 | ||||||||
Net income (loss) attributable to common stockholders | $ 15,313 | $ 2,207 | $ 5,521 | $ 198 | $ 1,196 | $ (598) | $ 496 | $ (1,340) | $ 21,750 | $ 0 | $ (8,227) |
Earnings Per Share, Diluted [Abstract] | |||||||||||
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, basic (in shares) | 233,641,336 | 84,483,094 | 78,119,865 | ||||||||
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, diluted (in shares) | 254,298,014 | 116,005,681 | 78,119,865 | ||||||||
Net income (loss) per share attributable to common stockholders, basic (in dollars per share) | $ 0.06 | $ 0.01 | $ 0.02 | $ 0 | $ 0.01 | $ (0.01) | $ 0.01 | $ (0.02) | $ 0.09 | $ 0 | $ (0.11) |
Net income (loss) per share attributable to common stockholders, diluted (in dollars per share) | $ 0.05 | $ 0.01 | $ 0.02 | $ 0 | $ 0.01 | $ (0.01) | $ 0 | $ (0.02) | $ 0.09 | $ 0 | $ (0.11) |
Class A Common Stock | |||||||||||
Earnings Per Share, Basic [Abstract] | |||||||||||
Net income (loss) | $ 5,450 | $ 0 | $ 0 | ||||||||
Distributed Earnings | 0 | 0 | 0 | ||||||||
Less: undistributed earnings attributable to participating securities | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to common stockholders | 5,450 | 0 | 0 | ||||||||
Reallocation of net income (loss) attributable to common stockholders | (439) | 0 | 0 | ||||||||
Net income (loss) attributable to common stockholders, diluted | $ 5,011 | $ 0 | $ 0 | ||||||||
Earnings Per Share, Diluted [Abstract] | |||||||||||
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, basic (in shares) | 58,541,269 | 0 | 0 | ||||||||
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, diluted (in shares) | 58,583,874 | 0 | 0 | ||||||||
Net income (loss) per share attributable to common stockholders, basic (in dollars per share) | $ 0.09 | $ 0 | $ 0 | ||||||||
Net income (loss) per share attributable to common stockholders, diluted (in dollars per share) | $ 0.09 | $ 0 | $ 0 | ||||||||
Class B Common Stock | |||||||||||
Earnings Per Share, Basic [Abstract] | |||||||||||
Net income (loss) | $ 19,855 | $ 7,584 | $ (3,822) | ||||||||
Distributed Earnings | 0 | 0 | 4,405 | ||||||||
Less: undistributed earnings attributable to participating securities | 3,555 | 7,584 | 0 | ||||||||
Net income (loss) attributable to common stockholders | 16,300 | 0 | (8,227) | ||||||||
Reallocation of net income (loss) attributable to common stockholders | 439 | 0 | 0 | ||||||||
Net income (loss) attributable to common stockholders, diluted | $ 16,739 | $ 0 | $ (8,227) | ||||||||
Earnings Per Share, Diluted [Abstract] | |||||||||||
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, basic (in shares) | 175,100,067 | 84,483,094 | 78,119,865 | ||||||||
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, diluted (in shares) | 195,714,140 | 116,005,681 | 78,119,865 | ||||||||
Net income (loss) per share attributable to common stockholders, basic (in dollars per share) | $ 0.09 | $ 0 | $ (0.11) | ||||||||
Net income (loss) per share attributable to common stockholders, diluted (in dollars per share) | $ 0.09 | $ 0 | $ (0.11) |
Net Income (Loss) Per Share A_4
Net Income (Loss) Per Share Attributable to Common Stockholders - Summary of Potential Shares of Common Stock Excluded from Computation of Diluted Net Income (Loss) Per Share Attributable to Common Stockholders (Details) - shares | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Class A Common Stock | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings (loss) per share (in shares) | 1,929,417 | 0 | 0 |
Issuance of common stock reserved for charitable donation (in shares) | 500,000 | ||
Class A Common Stock | Convertible preferred stock | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings (loss) per share (in shares) | 0 | 0 | 0 |
Class A Common Stock | Outstanding stock options | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings (loss) per share (in shares) | 141,782 | 0 | 0 |
Class A Common Stock | Unvested RSUs | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings (loss) per share (in shares) | 606,971 | 0 | 0 |
Class A Common Stock | Purchase rights committed under the ESPP | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings (loss) per share (in shares) | 1,180,664 | 0 | 0 |
Class A Common Stock | Shares subject to repurchase from early exercised stock options and restricted stock | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings (loss) per share (in shares) | 0 | 0 | 0 |
Class B Common Stock | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings (loss) per share (in shares) | 0 | 3,541,878 | 189,138,776 |
Class B Common Stock | Convertible preferred stock | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings (loss) per share (in shares) | 0 | 0 | 152,665,804 |
Class B Common Stock | Outstanding stock options | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings (loss) per share (in shares) | 0 | 3,541,878 | 34,170,489 |
Class B Common Stock | Unvested RSUs | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings (loss) per share (in shares) | 0 | 0 | |
Class B Common Stock | Purchase rights committed under the ESPP | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings (loss) per share (in shares) | 0 | 0 | |
Class B Common Stock | Shares subject to repurchase from early exercised stock options and restricted stock | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings (loss) per share (in shares) | 0 | 0 | 2,302,483 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 188,251 | $ 166,593 | $ 145,826 | $ 121,988 | $ 105,800 | $ 90,121 | $ 74,526 | $ 60,070 | $ 622,658 | $ 330,517 | $ 151,478 |
Gross profit | 155,704 | 135,748 | 117,926 | 97,884 | 86,275 | 73,278 | 61,553 | 48,410 | 507,262 | 269,516 | 120,698 |
Income (loss) from operations | 10,553 | (1,679) | 2,265 | 1,557 | 5,492 | (1,063) | 3,422 | (1,684) | 12,696 | 6,167 | (4,833) |
Net income (loss) attributable to common stockholders | $ 15,313 | $ 2,207 | $ 5,521 | $ 198 | $ 1,196 | $ (598) | $ 496 | $ (1,340) | $ 21,750 | $ 0 | $ (8,227) |
Net income (loss) per share attributable to common stockholders: | |||||||||||
Basic (in dollars per share) | $ 0.06 | $ 0.01 | $ 0.02 | $ 0 | $ 0.01 | $ (0.01) | $ 0.01 | $ (0.02) | $ 0.09 | $ 0 | $ (0.11) |
Diluted (in dollars per share) | $ 0.05 | $ 0.01 | $ 0.02 | $ 0 | $ 0.01 | $ (0.01) | $ 0 | $ (0.02) | $ 0.09 | $ 0 | $ (0.11) |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | Mar. 20, 2020 | Jan. 31, 2020 |
Subsequent Event [Line Items] | ||
Operating lease payments, due | $ 87,810 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Operating lease payments, due | $ 8,900 |
Schedule II_ Valuation and Qu_2
Schedule II: Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Accounts receivable allowances | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 2,071 | $ 560 | $ 922 |
Additions | 8,583 | 3,763 | 1,284 |
Write-offs or Deductions | (3,020) | (2,252) | (1,646) |
Balance at End of Year | 7,634 | 2,071 | 560 |
Deferred tax asset valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 877 | 3,154 | 6,220 |
Additions | 35,476 | 0 | 0 |
Write-offs or Deductions | 0 | (2,277) | (3,066) |
Balance at End of Year | $ 36,353 | $ 877 | $ 3,154 |
Uncategorized Items - zm-202001
Label | Element | Value |
Restricted Cash and Cash Equivalents, Noncurrent | us-gaap_RestrictedCashAndCashEquivalentsNoncurrent | $ 675,000 |
Restricted Cash and Cash Equivalents, Noncurrent | us-gaap_RestrictedCashAndCashEquivalentsNoncurrent | 2,301,000 |
Restricted Cash and Cash Equivalents, Noncurrent | us-gaap_RestrictedCashAndCashEquivalentsNoncurrent | 2,144,000 |
Restricted Cash and Cash Equivalents, Current | us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue | 200,000 |
Restricted Cash and Cash Equivalents, Current | us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue | 48,647,000 |
Restricted Cash and Cash Equivalents, Current | us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue | $ 0 |