Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Mar. 03, 2023 | Jul. 31, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 31, 2023 | ||
Current Fiscal Year End Date | --01-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-39502 | ||
Entity Registrant Name | Sumo Logic, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 27-2234444 | ||
Entity Address, Address Line One | 855 Main Street, Suite 100 | ||
Entity Address, City or Town | Redwood City | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94063 | ||
City Area Code | 650 | ||
Local Phone Number | 670-8002 | ||
Title of 12(b) Security | Common stock, par value $0.0001 per share | ||
Trading Symbol | SUMO | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 778.2 | ||
Entity Common Stock, Shares Outstanding | 122,510,379 | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement for the 2023 Annual Meeting of Stockholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. Such proxy statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended January 31, 2023. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001643269 |
Audit Information
Audit Information | 12 Months Ended |
Jan. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | San Francisco, California |
Auditor Firm ID | 238 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 76,496 | $ 79,986 |
Marketable securities, current | 225,643 | 210,645 |
Accounts receivable, net | 58,366 | 49,451 |
Prepaid expenses | 9,063 | 9,792 |
Deferred sales commissions, current | 19,699 | 17,110 |
Other current assets | 2,545 | 2,865 |
Total current assets | 391,812 | 369,849 |
Marketable securities, noncurrent | 41,213 | 65,866 |
Property and equipment, net | 4,852 | 4,960 |
Operating lease right-of-use assets | 1,381 | 6,110 |
Goodwill | 94,213 | 94,967 |
Acquired intangible assets, net | 12,709 | 26,221 |
Deferred sales commissions, noncurrent | 30,670 | 32,689 |
Other assets | 2,248 | 1,469 |
Total assets | 579,098 | 602,131 |
Current liabilities: | ||
Accounts payable | 17,279 | 7,755 |
Accrued expenses and other current liabilities | 26,793 | 25,425 |
Operating lease liabilities, current | 1,641 | 4,619 |
Deferred revenue, current | 150,484 | 131,329 |
Total current liabilities | 196,197 | 169,128 |
Operating lease liabilities, noncurrent | 22 | 2,346 |
Deferred revenue, noncurrent | 1,658 | 5,944 |
Other liabilities | 6,111 | 5,744 |
Total liabilities | 203,988 | 183,162 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity: | ||
Common stock $0.0001 par value— 1,000,000 shares authorized as of January 31, 2023 and 2022; 122,388 and 113,813 shares issued and outstanding as of January 31, 2023 and 2022, respectively | 12 | 11 |
Additional paid-in-capital | 1,027,627 | 944,447 |
Accumulated other comprehensive loss | (6,558) | (4,333) |
Accumulated deficit | (645,971) | (521,156) |
Total stockholders’ equity | 375,110 | 418,969 |
Total liabilities and stockholders’ equity | $ 579,098 | $ 602,131 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 31, 2023 | Jan. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 122,388,000 | 113,813,000 |
Common stock, shares outstanding (in shares) | 122,388,000 | 113,813,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Income Statement [Abstract] | |||
Revenue | $ 300,668 | $ 242,125 | $ 202,637 |
Cost of revenue | 97,551 | 78,308 | 56,492 |
Gross profit | 203,117 | 163,817 | 146,145 |
Operating expenses: | |||
Research and development | 104,949 | 94,652 | 70,206 |
Sales and marketing | 153,383 | 131,311 | 109,190 |
General and administrative | 71,649 | 59,129 | 44,408 |
Total operating expenses | 329,981 | 285,092 | 223,804 |
Loss from operations | (126,864) | (121,275) | (77,659) |
Interest and other income (expense), net | 5,031 | 10 | (419) |
Interest expense | (173) | (174) | (703) |
Loss before provision for income taxes | (122,006) | (121,439) | (78,781) |
Provision (benefit) for income taxes | 2,809 | 1,926 | 1,516 |
Net loss | $ (124,815) | $ (123,365) | $ (80,297) |
Net loss per share, diluted (in USD per share) | $ (1.06) | $ (1.13) | $ (1.65) |
Net loss per share, basic (in USD per share) | $ (1.06) | $ (1.13) | $ (1.65) |
Weighted-average number of shares outstanding, diluted (in shares) | 117,836 | 108,695 | 48,805 |
Weighted-average number of shares outstanding, basic (in shares) | 117,836 | 108,695 | 48,805 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (124,815) | $ (123,365) | $ (80,297) |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | (1,917) | (3,402) | 168 |
Unrealized loss on available-for-sale marketable securities | (308) | (886) | 0 |
Total comprehensive loss | $ (127,040) | $ (127,653) | $ (80,129) |
Consolidated Statements of Rede
Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance (in shares) at Jan. 31, 2020 | 63,762,000 | ||||
Beginning balance at Jan. 31, 2020 | $ 340,167 | ||||
Redeemable Convertible Preferred Stock | |||||
Conversion of convertible redeemable preferred stock to common stock upon initial public offering (in shares) | (63,762,000) | ||||
Conversion of convertible redeemable preferred stock to common stock upon initial public offering | $ (340,167) | ||||
Ending balance (in shares) at Jan. 31, 2021 | 0 | ||||
Ending balance at Jan. 31, 2021 | $ 0 | ||||
Beginning balance (in shares) at Jan. 31, 2020 | 18,984,000 | ||||
Beginning balance at Jan. 31, 2020 | (220,574) | $ 2 | $ 97,131 | $ (213) | $ (317,494) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon initial public offering, net of underwriting discounts and issuance costs (in shares) | 17,020,000 | ||||
Issuance of common stock upon initial public offering, net of underwriting discounts and issuance costs | 342,685 | $ 2 | 342,683 | ||
Conversion of convertible redeemable preferred stock to common stock upon initial public stock offering (in shares) | 63,762,000 | ||||
Conversion of convertible redeemable preferred stock to common stock upon initial public offering | 340,167 | $ 6 | 340,161 | ||
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital upon initial public offering | 512 | 512 | |||
Issuance of common stock upon exercise of stock options (in shares) | 2,462,000 | ||||
Issuance of common stock upon early exercise of stock options | 7,282 | 7,282 | |||
Vesting of early exercised stock options | 197 | 197 | |||
Common stock issued in connection with acquisitions (in shares) | 256,000 | ||||
Stock-based compensation | 41,272 | 41,272 | |||
Foreign currency translation adjustments | 168 | 168 | |||
Other comprehensive loss | 200 | ||||
Net loss | (80,297) | (80,297) | |||
Ending balance (in shares) at Jan. 31, 2021 | 102,484,000 | ||||
Ending balance at Jan. 31, 2021 | $ 431,412 | $ 10 | 829,238 | (45) | (397,791) |
Ending balance (in shares) at Jan. 31, 2022 | 0 | ||||
Ending balance at Jan. 31, 2022 | $ 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options (in shares) | 7,088,000 | ||||
Issuance of common stock upon early exercise of stock options | 22,326 | $ 1 | 22,325 | ||
Vesting of early exercised stock options | 197 | 197 | |||
Common stock issued in connection with acquisitions (in shares) | 1,674,000 | ||||
Exercise of common stock warrants (in shares) | 18,000 | ||||
Vesting of restricted stock units (in shares) | 2,008,000 | ||||
Issuance of common stock in connection with employee stock purchase plan (in shares) | 541,000 | ||||
Issuance of common stock in connection with employee stock purchase plan | 7,977 | 7,977 | |||
Common stock issued in connection with acquisitions | 30,499 | 30,499 | |||
Stock-based compensation | 54,211 | 54,211 | |||
Foreign currency translation adjustments | (3,402) | ||||
Other comprehensive loss | (4,288) | (4,288) | |||
Net loss | (123,365) | (123,365) | |||
Ending balance (in shares) at Jan. 31, 2022 | 113,813,000 | ||||
Ending balance at Jan. 31, 2022 | $ 418,969 | $ 11 | 944,447 | (4,333) | (521,156) |
Ending balance (in shares) at Jan. 31, 2023 | 0 | ||||
Ending balance at Jan. 31, 2023 | $ 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options (in shares) | 4,316,000 | ||||
Issuance of common stock upon early exercise of stock options | 14,563 | $ 1 | 14,562 | ||
Vesting of early exercised stock options | 33 | 33 | |||
Vesting of restricted stock units (in shares) | 3,551,000 | ||||
Issuance of common stock in connection with employee stock purchase plan (in shares) | 736,000 | ||||
Issuance of common stock in connection with employee stock purchase plan | 4,588 | 4,588 | |||
Cancellation of common stock held (in shares) | (28,000) | ||||
Stock-based compensation | 63,997 | 63,997 | |||
Foreign currency translation adjustments | (1,917) | ||||
Other comprehensive loss | (2,225) | (2,225) | |||
Net loss | (124,815) | (124,815) | |||
Ending balance (in shares) at Jan. 31, 2023 | 122,388,000 | ||||
Ending balance at Jan. 31, 2023 | $ 375,110 | $ 12 | $ 1,027,627 | $ (6,558) | $ (645,971) |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Cash flows from operating activities | |||
Net loss | $ (124,815) | $ (123,365) | $ (80,297) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 15,564 | 14,181 | 8,298 |
Amortization of deferred sales commissions | 20,194 | 15,847 | 11,476 |
Amortization (accretion) of marketable securities purchased at a premium (discount) | 740 | 3,070 | 0 |
Stock-based compensation, net of amounts capitalized | 63,493 | 54,146 | 40,951 |
Non-cash operating lease cost | 3,953 | 4,178 | 0 |
Other | (502) | 474 | 635 |
Changes in operating assets and liabilities, net of impact of acquisitions: | |||
Accounts receivable | (8,975) | (4,194) | (17,809) |
Prepaid expenses | 721 | 714 | (4,199) |
Other assets | (169) | 850 | (2,574) |
Deferred sales commissions | (20,764) | (24,999) | (25,771) |
Accounts payable | 9,549 | 2,825 | (1,345) |
Accrued expenses and other current liabilities | 2,233 | 1,589 | 4,121 |
Deferred revenue | 14,869 | 29,458 | 18,016 |
Operating lease liabilities | (4,410) | (4,513) | 0 |
Other liabilities | 961 | (752) | 1,319 |
Net cash used in operating activities | (27,358) | (30,491) | (47,179) |
Cash flows from investing activities | |||
Purchases of marketable securities | (265,269) | (424,724) | 0 |
Maturities of marketable securities | 245,701 | 102,508 | 0 |
Sales of marketable securities | 27,855 | 41,731 | 0 |
Purchases of property and equipment | (386) | (2,258) | (1,138) |
Capitalized internal-use software costs | (1,630) | (182) | (1,205) |
Cash paid for acquisitions, net of cash and restricted cash acquired | 0 | (40,340) | 0 |
Net cash provided by (used in) investing activities | 6,271 | (323,265) | (2,343) |
Cash flows from financing activities | |||
Proceeds from initial public offering, net of underwriting discounts | 0 | 0 | 349,166 |
Proceeds from borrowings | 0 | 0 | 24,250 |
Repayment of borrowings | 0 | 0 | (24,250) |
Payments of deferred offering costs | 0 | (93) | (4,362) |
Proceeds from employee stock purchase plan | 4,588 | 7,977 | 0 |
Proceeds from exercise of common stock options | 14,563 | 22,326 | 7,282 |
Cash paid for holdback consideration in connection with acquisitions | (456) | 0 | (100) |
Net cash provided by financing activities | 18,695 | 30,210 | 351,986 |
Effect of exchange rate changes on cash and cash equivalents | (1,098) | (608) | 163 |
Change in cash and cash equivalents and restricted cash | (3,490) | (324,154) | 302,627 |
Beginning of period | 80,286 | 404,440 | 101,813 |
End of period | 76,796 | 80,286 | 404,440 |
Supplemental disclosures of cash flow information | |||
Cash paid for income taxes | 2,431 | 933 | 1,194 |
Cash paid for interest | 87 | 84 | 733 |
Supplemental non-cash investing and financing information | |||
Conversion of redeemable convertible preferred stock to common stock | 0 | 0 | 340,161 |
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital | 0 | 0 | 512 |
Vesting of early exercised options | 33 | 197 | 197 |
Common stock and assumed awards issued as consideration for acquisitions | 0 | 30,499 | 0 |
Unpaid cash consideration for acquisitions | 0 | 456 | 0 |
Stock-based compensation capitalized as internal-use software costs | 504 | 65 | 321 |
Deferred offering costs accrued but not yet paid | 0 | 0 | 99 |
Property and equipment accrued but not yet paid | 0 | 4 | 15 |
Reconciliation of cash, cash equivalents, and restricted cash to consolidated balance sheets | |||
Cash and cash equivalents | 76,496 | 79,986 | 404,140 |
Restricted cash included in other current assets | 300 | 300 | 300 |
Total cash, cash equivalents, and restricted cash | $ 76,796 | $ 80,286 | $ 404,440 |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Jan. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Organization and Nature of Operations Sumo Logic, Inc. (the “Company”) was incorporated in Delaware in March 2010. The Company provides, on a cloud-native software-as-a-service (“SaaS”) delivery model, a software analytics platform for reliable and secure cloud-native applications to address the challenges and opportunities presented by digital transformation, modern applications, and cloud computing. The platform helps customers ensure application reliability, secure and protect against modern security threats, and gain insights into their cloud infrastructure. Basis of Presentation and Principles of Consolidation The Company’s consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company’s consolidated financial statements and accompanying notes include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Fiscal Year The Company’s fiscal year ends on January 31. Unless otherwise stated, references to year in these consolidated financial statements relate to the above described fiscal year rather than calendar year. Initial Public Offering On September 21, 2020, the Company completed its initial public offering (“IPO”), in which it sold 14,800,000 shares of common stock at a public offering price $22.00 per share. On October 9, 2020, the Company sold an additional 2,220,000 shares of common stock at a public offering price of $22.00 per share pursuant to the exercise of the underwriters’ option to purchase additional shares. The Company received net proceeds of $342.7 million, after deducting underwriters’ discounts and commissions and offering costs of $31.8 million. Immediately prior to the IPO, all shares of outstanding redeemable convertible preferred stock were converted into 63,761,950 shares of common stock on a one-to-one basis. Redeemable convertible preferred stock warrants also converted into 32,276 warrants to purchase common stock on a one-to-one basis. Prior to the IPO, all deferred offering costs were capitalized in other assets on the consolidated balance sheets. Deferred offering costs of $6.5 million, primarily consisting of accounting, legal, and other fees related to the Company’s IPO, were offset against the IPO proceeds upon the closing of the Company’s IPO in September of 2020. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Segment Information The Company operates as one operating and reportable segment. The Company’s chief operating decision maker is its chief executive officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources. Use of Estimates and Judgments The preparation of the Company’s consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, as of the date of the financial statements, and the reported amounts of income and expenses during the reporting period. These estimates are based on information available as of the date of the financial statements and may involve subjective or significant judgment by the Company; therefore, actual results could differ from the Company’s estimates. The Company’s accounting policies that involve judgment include revenue recognition, period of benefit for deferred sales commissions, useful lives of acquired intangible assets and property and equipment, stock-based compensation expense including the assumptions used for estimating the fair value of common stock (prior to the closing of the IPO), capitalization of internal-use software costs, fair value of assets acquired and liabilities assumed from business combinations, incremental borrowing rate for operating leases, estimate of credit losses for accounts receivable and marketable securities, and valuation allowances associated with income taxes. Macroeconomic Conditions and COVID-19 The uncertain macroeconomic environment and the ongoing COVID-19 pandemic have had and may continue to have an adverse effect on the Company’s corporate spending, operating margins, expenses, and cashflows. The Company has experienced and may continue to experience customer requests for concessions such as extended payment terms or better pricing and customer losses, including due to bankruptcy or customers ceasing operations, which may result in delays in collections or an inability to collect accounts receivable from these customers. These conditions may continue to impact the Company’s financial condition, results of operations, or liquidity continues to remain uncertain, and as of the date of issuance of these financial statements, the Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or an adjustment to the carrying value of the Company’s assets or liabilities. These estimates may change, as new events occur and additional information is obtained, which will be recognized in the consolidated financial statements as soon as they become known. Actual results could differ from those estimates, and any such differences may be material to the Company’s financial statements. Since March 2020, the Company has continued to support many of their employees and contractors in working remotely and have reduced business travel. The Company has exited and may continue to exit office leases. During the second quarter of fiscal 2023, the Company exercised the option to early terminate one of its office leases, resulting in the related right-of-use asset balance being written off with no corresponding lease liability remaining on the consolidated balance sheet as of January 31, 2023. The action resulted in a $0.1 million gain recognized in interest and other income (loss), net for the year ended January 31, 2023. In May 2020, as part of the Company’s efforts to respond to the COVID-19 pandemic and ensure longer-term financial stability, the Company initiated cost reduction measures, including a headcount reduction. The headcount reduction resulted in $1.2 million of severance and benefits expense and $0.1 million in stock-based compensation expense for the year ended January 31, 2021. Revenue Recognition In accordance with ASC 606, revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration the Company expects to be entitled to receive in exchange for these services. The Company determines revenue recognition through the following steps: 1. Identification of the contract, or contracts, with the customer The Company considers the terms and conditions of the contract and its customary business practices in identifying contracts under ASC 606. The Company determines it has a contract with a customer when the contract is fully approved by both parties, it can identify each party’s rights regarding the services to be transferred, it can identify the payment terms for the services, and it has determined the customer has the ability and intent to pay and the contract has commercial substance. At contract inception, the Company evaluates 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. The Company applies 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 promised in a contract are identified based on the services and the products 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 the Company, 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. The Company’s performance obligations consist of subscription and support services. 3. Determination of the transaction price The transaction price is determined based on the consideration to which the Company expects to be entitled in exchange for transferring services to the customer. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. The Company’s policy is to exclude sales and other indirect taxes when measuring the transaction price. None of the Company’s contracts contain a significant financing component. 4. Allocation of the transaction price to the performance obligation in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price (“SSP”). The Company determines the SSP based on an observable standalone selling price when it is available, as well as other factors, including the price charged to customers, its discounting practices, and the Company’s overall pricing objectives, while maximizing observable inputs. 5. Recognition of the revenue when, or as, the Company satisfies a performance obligation 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 the Company expects to receive in exchange for those services. The Company generates all its revenue from contracts with customers. The Company generates revenue from subscriptions and support services to customers that enable them to access the Company’s cloud-based platform. Subscription arrangements with customers do not provide the customer with the right to take possession of the Company’s software at any time. Instead, customers are granted continuous access to the platform over the contractual period. A time-elapsed method is used to measure progress as control is transferred evenly over the contractual period. Accordingly, the fixed consideration related to subscription fees is generally recognized on a straight-line basis over the contract term, commencing on the date the service is made available to the customer and all other revenue recognition criteria have been met. The typical subscription term is one The Company allocates revenue to each performance obligation based on its relative standalone selling price and generally determines standalone selling prices based on a range of actual prices charged to customers. Accounts Receivable, Net and Contract Assets Accounts receivable are recorded at the invoiced amount, net of allowance for credit losses. The allowance is based upon historical loss patterns, the age of each past due invoice, and expectations of forward-looking loss estimates to determine whether the allowance is appropriate. Accounts receivable deemed uncollectible are charged against the allowance for credit losses when identified. The Company performs ongoing credit evaluations of its customers. There was $0.4 million and $0.3 million recorded as an allowance for doubtful accounts for the Company’s accounts receivables as of January 31, 2023 and January 31, 2022, respectively. As of January 31, 2023 and 2022, no customer accounted for 10% or more of total accounts receivable. Unbilled receivables are recorded when revenue recognized on a contract exceeds the billings to date for that contract and the right to consideration is unconditional when only passage of time is required before payment of that consideration is due. Unbilled receivables totaled $3.1 million and $1.9 million as of January 31, 2023 and 2022, respectively, and were recorded within accounts receivable, net on the consolidated balance sheets. Contract assets are recorded when revenue recognized on a contract exceeds the billings to date for that contract and the right to consideration is conditional. There were no contract assets on the consolidated balance sheet as of January 31, 2023 and 2022, respectively. Deferred Revenue Deferred revenue consists of non-cancelable customer billings, or payments received in advance of revenue recognition. The Company generally invoices its customers in monthly, quarterly, or annual installments. Accordingly, the deferred revenue balance generally does not represent the total contract value of annual or multi-year, non-cancelable subscription arrangements. Deferred revenue that will be recognized within the next twelve months is recorded as current deferred revenue, and the remaining portion is recorded as noncurrent. Deferred Sales Commissions The Company capitalizes certain sales commissions, including related payroll taxes, earned by the Company’s sales force, which are considered to be incremental costs that would not be incurred absent the contract, and recoverable costs of acquiring a contract with a customer. Commissions earned on the initial acquisition of a contract are amortized over a period of benefit of five years on a straight-line basis. The period of benefit is estimated by considering factors such as the expected life of the Company’s subscription contracts, historical customer attrition rates, technological life of the Company’s platform, the impact of competition in its industry, as well as other factors. Commissions for renewals are considered not commensurate with the commission paid for the acquisition of the initial contract and are therefore amortized over the contractual term of the contract, consistent with the pattern of revenue recognition for each performance obligation. The Company capitalized $20.8 million and $25.0 million in sales commissions for the years ended January 31, 2023 and 2022, respectively. Amortized costs are included in sales and marketing expense in the accompanying consolidated statements of operations and were $20.2 million, $15.8 million, and $11.5 million for the years ended January 31, 2023, 2022, and 2021, respectively. There was no impairment loss in relation to deferred sales commissions for the years ended January 31, 2023, 2022, or 2021. Sales commissions that will be amortized within the next twelve months are included in deferred sales commissions, current, on the consolidated balance sheets. Any sales commissions that will be amortized in any period subsequent to the next twelve months are included in deferred sales commissions, noncurrent, on the consolidated balance sheets. Concentrations of Risk The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, and accounts receivable. Although the Company deposits its cash with high-quality credit rated financial institutions, the deposits, at times, may exceed federally insured limits. The Company has not experienced any losses on its deposits of cash and cash equivalents. Cash equivalents consist of money market funds and highly liquid investments that mature in three months or less at the date of purchase which are invested through financial institutions in the United States. Management believes that the institutions are financially stable and, accordingly, minimal credit risk exists. Foreign Currency Transactions The functional currency of the Company’s foreign subsidiaries is the respective local currency. All asset and liability accounts of the Company’s foreign subsidiaries are translated into U.S. dollars using the exchange rate on the balance sheet date. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are recorded as a separate component on the consolidated statements of comprehensive loss. Equity transactions are translated using historical exchange rates. Expenses are translated using the average exchange rate during the year. Foreign currency transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency of the recording entity are included in interest and other income (expense), net in the Company’s consolidated statements of operations. The Company incurred $0.2 million, $(0.4) million, and $(0.4) million in foreign currency transaction gains (losses) for the years ended January 31, 2023, 2022, and 2021, respectively. Cash and Cash Equivalents The Company’s cash and cash equivalents consist primarily of cash deposits, money market funds, and highly liquid investments that mature in three months or less at the date of purchase. Marketable Securities Marketable securities consist of U.S. treasury securities, corporate debt securities, commercial paper, foreign government obligations, supranational securities, certificates of deposits, and U.S. government agency securities. The Company classifies marketable securities as available-for-sale at the time of purchase and reevaluates such classification as of each balance sheet date. Interest receivable on these securities is presented in other current assets on the consolidated balance sheets. All marketable securities are recorded at their estimated fair values. When the fair value of a marketable security declines below its amortized cost basis, the carrying value of the security will be reduced to its fair value if it is more likely than not that management is required to sell the impaired security before recovery of its amortized basis, or management has the intention to sell the security. If neither of these conditions are met, the Company determines whether any portion of the decline is due to credit losses. Any portion of that decline attributable to credit losses, to the extent expected to be nonrecoverable before the sale of the security, is recognized in the Company’s consolidated statement of operations. When the fair value of the security declines below its amortized cost basis due to changes in interest rates, such amounts are recorded in accumulated other comprehensive (loss) income and are recognized in the Company’s consolidated statement of operations only if the Company sells or intends to sell the security before recovery of its cost basis. Realized gains and losses are determined based on the specific identification method and are reported in interest and other income (expense), net in the Company’s consolidated statements of operations. Property and Equipment, Net Property and equipment are stated at cost less accumulated depreciation. Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Land is not depreciated. Costs of maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. Upon retirement or sale, the cost and related accumulated depreciation and amortization are removed from the Company’s consolidated balance sheet and the resulting gain or loss is reflected in the Company’s consolidated statement of operations. The following table presents the estimated useful lives of the Company’s property and equipment: Useful Life Computer and hardware equipment 3 years Furniture and fixtures 5 years Leasehold improvements Shorter of lease term or estimated useful life Capitalized internal-use software 3 years Building 10 - 22 years Leases The Company enters into operating lease arrangements for real estate assets related to office space. The Company determines if an arrangement is or contains a lease at commencement by evaluating various factors, including whether a vendor’s right to substitute an identified asset is substantive. Lease classification is determined at the lease commencement date, which is the date the leased assets are made available for use. Operating leases are included in operating lease right-of-use assets, operating lease liabilities, current, and operating lease liabilities, noncurrent in the consolidated balance sheets. The Company did not have any financing leases in any of the periods presented. Operating lease right-of-use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease payments consist of the fixed payments under the arrangement, less any lease incentives, such as tenant improvement allowances. The Company elected the practical expedient which allows the Company to not allocate consideration between lease and non-lease components. Variable costs, such as maintenance and utilities based on actual usage, are not included in the measurement of right-to-use assets and lease liabilities but are expensed when the event determining the amount of variable consideration to be paid occurs. The interest rate implicit in its operating leases is not readily determinable, and therefore an incremental borrowing rate (“IBR”) is estimated to determine the present value of future payments. The estimated IBR factors in a hypothetical interest rate on a collateralized basis with similar terms, payments, and economic environments. Lease expenses are recognized on a straight-line basis over the lease term. The Company generally uses the non-cancelable lease term when recognizing the right-of-use assets and lease liabilities, unless it is reasonably certain that a renewal or termination option will be exercised. The Company accounts for lease components and non-lease components as a single lease component. Leases with a term of 12 months or less are not recognized on the consolidated balance sheets but are recognized as expense on a straight-line basis over the term of the lease. Capitalized Internal-Use Software Costs The Company capitalizes certain costs related to its enterprise cloud computing services and certain projects for internal use incurred during the application development stage. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life. The Company capitalized $2.1 million and $0.2 million of internal-use software costs during the years ended January 31, 2023 and 2022, respectively. Amortization of internal-use software costs included in cost of revenue in the consolidated statements of operations was $0.6 million, $0.7 million, and $0.7 million for the years ended January 31, 2023, 2022, and 2021, respectively. As of January 31, 2023 and 2022, the Company included capitalized internal-use software costs of $2.8 million and $1.2 million within property and equipment, net, respectively. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. There were no impairments to capitalized internal-use software costs during the years ended January 31, 2023, 2022, or 2021. Goodwill and Other Acquired Intangible Assets Goodwill represents the excess of the purchase price over the fair value of net assets acquired in connection with business combinations accounted for using the acquisition method of accounting. The Company has one reporting unit and performs such testing of goodwill in the fourth quarter of each year, or as events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. These triggering events that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of goodwill or a significant decrease in expected cash flows. The Company’s test for goodwill impairment starts with a qualitative assessment to determine whether it is necessary to perform the quantitative goodwill impairment test. If the Company determines, based on the qualitative factors, that the fair value of the reporting unit is more likely than not less than the carrying amount, then a quantitative goodwill impairment test is required. There was no impairment of goodwill recorded for the years ended January 31, 2023, 2022, or 2021. Intangible assets consist of identifiable intangible assets, primarily developed technology and customer relationships, resulting from the Company’s acquisitions. Acquired intangible assets are recorded at cost, net of accumulated amortization. Intangible assets are amortized on a straight-line basis over their estimated useful lives. Amortization costs are included in cost of revenue within the consolidated statements of operations. Long-lived assets, including intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. There was no impairment of intangible assets recorded for the years ended January 31, 2023, 2022, or 2021. Business Combinations The Company accounts for its acquisitions using the acquisition method of accounting. The Company allocates the fair value of purchase consideration to the tangible and intangible assets acquired, and liabilities assumed based on their estimated fair values at the acquisition date. The excess of the fair value of purchase consideration over the values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair value of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain identifiable assets include, but are not limited to, reproduction costs, expected long-term market growth, future expected operating expenses, cost build-up to support obligations, and appropriate discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Acquisition costs, such as legal and consulting fees, are expensed as incurred. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded in the consolidated statement of operations. See Note 5 for additional information regarding the Company’s acquisitions. Cost of Revenue Cost of revenue includes all direct costs to deliver and support the Company’s platform, including personnel and related costs, third-party cloud infrastructure costs for hosting the Company’s cloud platform, amortization of internal-use software and acquired developed technology, as well as allocated facilities and IT costs. These costs are expensed as incurred. Research and Development Expense The Company’s costs related to research, design, maintenance, and minor enhancements of the Company’s platform are expensed as incurred. These costs consist primarily of personnel and related expenses, including allocated overhead costs, contractor and consulting fees related to the design, development, testing, and enhancements of the Company’s platform, and software, hardware, and cloud infrastructure fees for staging and development related to research and development activities necessary to support growth in the Company’s employee base and in the adoption of its platform. Advertising and Promotion Costs Costs related to advertising and promotions of the Company’s service offerings are charged to sales and marketing expense as incurred. The Company incurred $8.9 million, $6.5 million, and $7.2 million in advertising and promotion expenses for the years ended January 31, 2023, 2022, and 2021, respectively. Stock-Based Compensation The Company measures and recognizes compensation expense for all stock-based payment awards granted to employees, directors, and non-employees based on the estimated fair values on the date of the grant. The fair value of options granted and purchase rights granted under the Employee Stock Purchase Plan (“ESPP”) is estimated on the grant date using the Black-Scholes option pricing model. The fair value of Restricted Stock Units (“RSUs”) is estimated on the date of grant based on the fair value of the Company’s underlying common stock. Prior to the Company’s IPO, the fair value of the Company’s common stock for financial reporting purposes was determined considering objective and subjective factors, including valuations from third-party valuation experts, and required judgment to determine the fair value of common stock for financial reporting purposes as of the date of each equity grant or modification. The Company recognizes stock-based compen sation expense for service-based awards and its ESPP purchase rights on a straight-line basis over the service period, net of actual forfeitures. The Company also has certain options and RSUs that have performance-based vesting conditions; stock-based compensation expense for such awards is recognized using an accelerated attribution method from the time the vesting condition is probable through the time the vesting condition has been achieved. Prior to the Company’s IPO, the Company recognized stock-based compensation expense for RSUs on an accelerated attribution method as the RSUs were subject to service-based and performance-based vesting conditions, which included a liquidity event condition, and in certain cases, the achievement of certain other performance metrics. None of the RSUs would vest unless the liquidity event condition was satisfied. Upon the completion of the IPO, the liquidity event condition was considered probable and the Company recognized cumulative stock-based compensation expense using the accelerated attribution method related to RSUs that had vested as of the IPO. The remaining unrecognized stock-based compensation expense related to the RSUs will be recognized over the remaining requisite service period. All RSUs granted after the IPO, under the 2020 Equity Incentive Plan (the “2020 Plan”) will not be subject to a liquidity event condition and will generally be recognized on a straight-line basis over the service period. Income Taxes The Company records income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s consolidated financial statements or income tax returns. The Company recognizes deferred tax assets to the extent that the Company believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize deferred tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision (benefit) for income taxes. The Company operates in various tax jurisdictions and is subject to audit by various tax authorities. The Company provides for tax contingencies whenever it is deemed more likely than not that a tax asset has been impaired, or a tax liability has been incurred for events such as tax claims or changes in tax laws. Tax contingencies are based upon their technical merits, applicable tax law, and the specific facts and circumstances as of each reporting period. Changes in facts and circumstances could result in material changes to the amounts recorded for such tax contingencies. The Company records uncertain tax positions on the basis of a two-step process whereby (1) a determination is made as to whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position, and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is greater than 50% likely to be realized upon ultimate settlement with the related tax authority. Other Comprehensive Loss (Income) Other comprehensive (loss) income includes amounts recorded in equity that are not the result of transactions with stockholders. The changes in other comprehensive (loss) income are a result of translation gains and losses for the Company’s foreign subsidiaries assets, liabilities, revenue, and expenses and unrealized gains (losses) on available-for-sale marketable securities. The Company recorded other comprehensive (loss) income of $(2.2) million, $(4.3) million, and $0.2 million for the years ended January 31, 2023, 2022, and 2021, respectively. Net Loss per Share Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period, less any shares subject to repurchase. Diluted net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period giving effect to all potentially dilutive securities to the extent they are dilutive. Basic and diluted net loss attributable to common stockholders per share is presented in conformity with the two-class method required for participating securities as the redeemable convertible preferred stock is considered a participating security because it participates in dividends with common stock. The Company also considers the shares issued upon the early exercise of stock options subject to repurchase to be participating securities, because holders of such shares have non-forfeitable dividend rights in the event a dividend is paid on common stock. In addition, shares that are contingently issuable are excluded from the computation of basic earnings per share. Because the Company has reported a net loss for all periods presented, diluted net loss per common share is the same as basic net loss per common share for those periods. Related Party Transactions Certain members of the Company’s board of directors serve as directors of, or are executive officers of, and in some cases are investors in, companies that are |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company measures its financial assets and liabilities at fair value each reporting period using a fair value hierarchy that prioritizes the use of observable inputs and minimizes 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, as follows: Level 1 Observable inputs, such as quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company uses the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The carrying amounts of the Company’s financial instruments, which include cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value because of the short maturity of those instruments. The following tables present the fair value of the Company’s financial assets measured at fair value on a recurring basis, based on the three-tier fair value hierarchy (in thousands): January 31, 2023 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 62,570 $ — $ — $ 62,570 Marketable securities: U.S. treasury securities — 49,023 — 49,023 Corporate debt securities — 134,771 — 134,771 Commercial paper — 48,246 — 48,246 Foreign government obligations — 1,394 — 1,394 Certificates of deposit — 7,901 — 7,901 U.S. government agency securities — 25,521 — 25,521 Total financial assets $ 62,570 $ 266,856 $ — $ 329,426 January 31, 2022 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 70,742 $ — $ — $ 70,742 Marketable securities: U.S. treasury securities — 67,476 — 67,476 Corporate debt securities — 167,160 — 167,160 Commercial paper — 19,033 — 19,033 Foreign government obligations — 7,607 — 7,607 Supranational securities — 12,922 — 12,922 Certificates of deposit — 2,313 — 2,313 Total financial assets $ 70,742 $ 276,511 $ — $ 347,253 The Company had $0.3 million of restricted cash invested in money market funds that is not included in the tables above as of January 31, 2023 and 2022, respectively. In connection with the Loan and Security agreement, discussed in Note 7, the Company issued 32,276 warrants to purchase shares of the Company’s redeemable convertible preferred stock. The Company used a Black-Scholes option valuation model to value its redeemable convertible preferred stock warrant liability at inception and on subsequent valuation dates. Changes in the fair values of the redeemable convertible preferred stock warrant liability were recorded as interest and other income (expense), net in the Company’s consolidated statements of operations. All 32,276 warrants to purchase shares of redeemable convertible preferred stock converted into warrants to purchase common stock upon the closing of the Company’s IPO and the related liability was reclassified to additional paid-in capital in the Company’s consolidated balance sheet. During the year ended January 31, 2023, no warrants were exercised. During the year ended January 31, 2022, 21,746 warrants were exercised. There were no transfers between levels of the fair value hierarchy during the years ended January 31, 2023 and 2022, respectively. The following is a summary of available-for sale marketable securities, excluding those securities classified within cash and cash equivalents on the consolidated balance sheet as of January 31, 2023 (in thousands): January 31, 2023 Amortized Cost Unrealized Gain Unrealized Loss Fair Value U.S. treasury securities $ 49,378 $ 2 $ (357) $ 49,023 Corporate debt securities 135,552 40 (821) 134,771 Commercial paper 48,277 9 (40) 48,246 Foreign government obligations 1,408 — (14) 1,394 Certificates of deposit 7,924 2 (25) 7,901 U.S. government agency securities 25,512 11 (2) 25,521 Total marketable securities $ 268,051 $ 64 $ (1,259) $ 266,856 January 31, 2022 Amortized Cost Unrealized Gain Unrealized Loss Fair Value U.S. treasury securities $ 67,770 $ — $ (294) $ 67,476 Corporate debt securities 167,693 3 (536) 167,160 Commercial paper 19,052 — (19) 19,033 Foreign government obligations 7,640 — (33) 7,607 Supranational securities 12,923 — (1) 12,922 Certificates of deposit 2,319 — (6) 2,313 Total marketable securities $ 277,397 $ 3 $ (889) $ 276,511 The Company does not believe that any unrealized losses are attributable to credit-related factors based on its evaluation of available evidence. To determine whether a decline in value is related to credit loss, the Company evaluates, among other factors: the extent to which the fair value is less than the amortized cost basis, changes to the rating of the security by a rating agency, and any adverse conditions specifically related to an issuer of a security or its industry. No impairment loss has been recorded on the securities included in the table above, as the Company believes that the decrease in fair value of these securities is temporary. The following table presents the contractual maturities of the Company’s marketable securities (in thousands): January 31, Due in one year or less $ 225,643 Due after one year and within five years 41,213 Total marketable securities $ 266,856 |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Jan. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | Balance Sheet Components Property and Equipment, Net Property and equipment, net, consisted of the following (in thousands): January 31, January 31, Computer and hardware equipment $ 3,556 $ 3,406 Furniture and fixtures 2,047 2,016 Leasehold improvements 2,891 3,004 Capitalized internal-use software 4,111 3,633 Building 301 311 Land 85 87 Gross property and equipment (a) 12,991 12,457 Accumulated depreciation and amortization (8,139) (7,497) Property and equipment, net $ 4,852 $ 4,960 ______________ (a) Gross property and equipment includes construction-in-progress of $0.1 million that had not yet been placed in service as of January 31, 2022. The costs associated with construction-in-progress are not amortized until placed in service. Depreciation and amortization expense of property and equipment was $2.6 million, $2.0 million, and $1.5 million for the years ended January 31, 2023, 2022, and 2021, respectively. The following table presents the Company’s long-lived assets by geographic region for the periods indicated (in thousands): January 31, January 31, United States $ 4,237 $ 4,133 International 615 827 Total long-lived assets $ 4,852 $ 4,960 Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): January 31, January 31, Accrued compensation $ 8,079 $ 10,771 Accrued sales commissions 3,645 5,624 Accrued taxes 1,044 2,022 Accrued professional services 8,428 851 Accrued other expenses 5,597 6,157 Accrued expenses and other current liabilities $ 26,793 $ 25,425 |
Acquisitions, Intangible Assets
Acquisitions, Intangible Assets, and Goodwill | 12 Months Ended |
Jan. 31, 2023 | |
Acquisitions, Intangible Assets, And Goodwill [Abstract] | |
Acquisitions, Intangible Assets, And Goodwill | Acquisitions, Intangible Assets, and Goodwill Fiscal 2022 Acquisitions Sensu, Inc. On June 10, 2021, the Company completed the acquisition of Sensu, Inc. (“Sensu”) a privately-held software company that is a leader in open source monitoring. The addition of Sensu is expected to accelerate the Company's observability strategy by providing customers with an affordable and scalable end-to-end solution for infrastructure and application monitoring. The aggregate amount recorded as purchase consideration was $32.7 million, of which $8.6 million was paid or to be paid in cash, and $24.1 million was comprised of 1,123,697 shares of the Company’s common stock. The value of consideration assigned to such shares of common stock was based on the closing price of the Company’s common stock on the date of acquisition, or $21.49 per share. Additionally, 71,644 shares of common stock were issued with a fair value of $21.49 per share at the time of grant and will be recorded as sto ck-based compensation expense. These shares are subject to risk of forfeiture which lapse in full 1.5 years after the acquisition date. The Company recorded stock-based compensation expense related to the vesting of the restricted common stock of $0.3 million and $0.7 million during the year ended January 31, 2023 and 2022, respectively. As of January 31, 2023, stock-based compensation on these awards has been fully recognized. A portion of the consideration otherwise payable was held back by the Company as partial security for certain indemnification obligations to be released 12 months after the acquisition date, subject to reduction for any indemnification claims. The $0.5 million of consideration held back was released during the second quarter of fiscal 2023. Certain stock options held by Sensu employees were assumed by the Company with a total fair value of $0.6 million and will be recognized as stock-based compensation expense over the remaining service period. See Note 10 for more details on the Sensu options assumed. The acquisition was accounted for as a business combination and the total purchase consideration was allocated to the net tangible and intangible assets and liabilities based on their fair values on the acquisition date and the excess was recorded as goodwill. The following table presents the purchase consideration allocation recorded in the Company’s consolidated balance sheet as of the acquisition date (in thousands): Amount Cash and cash equivalents $ 2,270 Accounts receivable 409 Other current assets 50 Acquired intangible assets 11,800 Goodwill 19,889 Accounts payable (49) Deferred revenue, current (658) Accrued expenses and other current liabilities (143) Deferred revenue, noncurrent (99) Other liabilities (747) Total acquisition consideration $ 32,722 The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands): Total Useful Life Developed technology $ 8,800 3 Customer relationships 3,000 5 Intangible assets $ 11,800 Goodwill represents the future economic benefits arising from other assets that could not be individually identified and separately recognized, such as the acquired assembled workforce and synergies expected to be achieved from the integration of Sensu. In addition, goodwill represents the future benefits as a result of the acquisition that management expects to enhance the Company’s product available to both new and existing customers and increase the Company’s market position. Goodwill is not deductible for tax purposes. The results of operations of Sensu from the date of acquisition have been included in the Company’s consolidated financial statements. Pro forma revenue and results of operations have not been presented because the historical results of Sensu are not material to the Company’s consolidated financial statements in any period presented. DF Labs S.p.A. On May 24, 2021, the Company completed the acquisition of DF Labs S.p.A. (“DFLabs”), a privately-held Italian corporation and a leader in security orchestration, automation and response (“SOAR”) technology. The combination of the Company’s Cloud SIEM and DFLabs' solution will provide customers with comprehensive cloud-native security intelligence solutions. The aggregate amount recorded as purchase consideration was $41.7 million, of which $35.3 million was paid in cash, and $6.4 million was comprised of 334,815 shares of the Company’s common stock. The value of consideration assigned to such shares of common stock was based on the closing price of the Company’s common stock on the date of acquisition, or $18.97 per share. Additionally, 143,492 shares of common stock were issued with a fair value of $18.97 per share at the time of grant and will be recorded as st ock-based compensation. These shares are subject to risk of forfeiture, which lapse in full 2.0 years after the acquisition date. The Company recorded stock-based compensation expense related to the vesting of the restricted common stock of $1.4 million and $0.9 million during the year ended January 31, 2023 and 2022, respectively. As of January 31, 2023, the remaining unrecognized stock-based compensation expense was $0.4 million and will be recognized over the remaining vesting period. A portion of the consideration otherwise payable was placed into escrow as partial security for certain indemnification obligations to be released 12 months after the acquisition date, subject to reduction for any indemnification claims. The consideration placed in escrow was released during the third quarter of fiscal 2023. The acquisition was accounted for as a business combination and the total purchase consideration was allocated to the net tangible and intangible assets and liabilities based on their fair values on the acquisition date and the excess was recorded as goodwill. The following table presents the purchase consideration allocation recorded in the Company’s consolidated balance sheet as of the acquisition date (in thousa nds): Amount Cash and cash equivalents $ 782 Accounts receivable 430 Other current assets 111 Property and equipment 435 Acquired intangible assets 17,200 Goodwill 26,623 Other assets 178 Accounts payable (262) Deferred revenue, current (340) Accrued expenses and other current liabilities (788) Deferred revenue, noncurrent (38) Other liabilities (2,654) Total acquisition consideration $ 41,677 Acquired intangible assets consist of developed technology with an estimated useful life of 3 years. Goodwill represents the future economic benefits arising from other assets that could not be individually identified and separately recognized, such as the acquired assembled workforce of DFLabs and synergies expected to be achieved from the integration of DFLabs. In addition, goodwill represents the future benefits as a result of the acquisition that management expects to enhance the Company’s product available to both new and existing customers and increase the Company’s market position. Goodwill is not deductible for tax purposes. The results of operations of DFLabs from the date of acquisition have been included in the Company’s consolidated financial statements. Pro forma revenue and results of operations have not been presented because the historical results of DFLabs are not material to the Company’s consolidated financial statements in any period presented. Acquisition-Related Expenses The Company incurred acquisition-related expenses primarily for professional services o f $3.8 million during the year ended January 31, 2022, w hich were recorded as general and administrative expenses in the consolidated statement of operations. Acquired Intangible Assets Acquired intangible assets, net consisted of the following (in thousands): January 31, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life Developed technology $ 43,163 $ (32,471) $ 10,692 1.4 Customer relationships 3,000 (983) 2,017 3.4 Total $ 46,163 $ (33,454) $ 12,709 January 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life Developed technology $ 43,650 $ (20,046) $ 23,604 2.1 Customer relationships $ 3,000 $ (383) $ 2,617 4.4 Total $ 46,650 $ (20,429) $ 26,221 The Company recorded $13.0 million, $12.1 million, and $6.8 million of amortization expense during the years ended January 31, 2023, 2022, and 2021, respectively. There was no impairment of intangible assets recorded for the years ended January 31, 2023, 2022, and 2021, respectively. Fully amortized intangible assets were written off in the amount of $1.0 million during the year ended January 31, 2022. As of January 31, 2023, future amortization expense related to acquired intangible assets was as follows (in thousands): Amortization Expense 2024 $ 8,626 2025 3,266 2026 600 2027 217 Total amortization expense $ 12,709 As of January 31, 2022, future amortization expense related to acquired intangible assets was as follows (in thousands): Amortization Expense 2023 $ 13,298 2024 8,789 2025 3,317 2026 600 2027 217 Total amortization expense $ 26,221 Goodwill Changes in the carrying amount of goodwill for the year ended January 31, 2023 was as follows (in thousands): Amounts Balance as of January 31, 2022 $ 94,967 Foreign currency translation (754) Balance as of January 31, 2023 $ 94,213 There was no impairment of goodwill recorded for the years ended January 31, 2023, 2022, or 2021. |
Leases
Leases | 12 Months Ended |
Jan. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company leases office space globally under non-cancelable operating lease agreements that expire at various dates through fiscal 2025. The leases require monthly lease payments that may be subject to annual increases throughout the lease term. Certain of these leases include (i) renewal options at the election of the Company to renew or extend the lease for an additional 5 years, and/or (ii) options to terminate the lease early, subject to certain termination penalties and fees. These optional renewal and terminations periods have not been considered in the determination of the right-of-use assets and lease liabilities associated with these leases, as the Company did not consider it reasonably certain it would exercise the options. During the second quarter of fiscal 2023, the Company exercised the option to early terminate one of its office leases, resulting in the related right-of-use asset balance being written off with no corresponding lease liability remaining on the Company’s balance sheet. This action resulted in a $0.1 million gain recognized in interest and other income (expense), net in the Company’s consolidated statements of operations during the year ended January 31, 2023. In January 2023, the Company entered into a Sublease Agreement (“Sublease”) with respect to the Company’s new corporate headquarters office space located in Redwood City, California. The term of the sublease is February 2023 through May 2027 and is for approximately 24,000 square feet. Under the Sublease, the Company is obligated to pay fixed monthly rent over the term totaling approximately $10.6 million. The Sublease will be recorded as an operating lease liability in the Company’s consolidated balance sheet in the first quarter of fiscal 2024. The Company evaluated its contracts and determined each of its identified leases are classified as operating leases. The Company has no lease agreements that are classified as finance leases as of January 31, 2023. The following table presents the components of operating lease expense (in thousands): January 31, January 31, Operating lease expense $ 4,093 $ 4,467 Variable lease expense 480 496 Short-term lease expense 397 81 Sublease income (263) (217) As of January 31, 2023, the weighted average remaining lease term was 0.6 years and the weighted average discount rate used to determine the net present value of the lease liability was 3.0%. Rent expense under the previous lease accounting standard (ASC 840) was $3.3 million for the year ended January 31, 2021. Supplemental cash flow information and non-cash activity related to the Company’s operating leases were as follows (in thousands): January 31, January 31, Cash paid for amounts included in the measurement of lease liabilities $ 4,534 $ 4,785 As of January 31, 2023, remaining maturities of lease liabilities are as follows (in thousands): Amount 2024 $ 1,658 2025 22 Total lease payments $ 1,680 Less: imputed interest (17) Present value of lease liabilities $ 1,663 |
Debt
Debt | 12 Months Ended |
Jan. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt In February 2021, the Company entered into an Amended and Restated Loan and Security Agreement with Silicon Valley Bank (“SVB Agreement”) which provides for a revolving line of credit facility. The SVB Agreement amends and restates the Loan and Security Agreement dated January 31, 2016. Under the SVB Agreement, the Company can borrow up to $50 million. Interest on any drawdown accrues at the prime rate minus a spread rate ranging from 0.25% to 0.75%, as determined by the Company’s adjusted quick ratio, subject to either a 3.00% or 2.50% floor depending on the adjusted quick ratio. The SVB Agreement is secured by substantially all of the Company’s assets and includes restrictive covenants, in each case subject to certain exceptions, that limit the Company’s ability to, among other things: incur debt, grant liens, make acquisitions, undergo a change in control, make investments, make certain dividends or distributions, repurchase or redeem stock, dispose of or transfer assets, and enter into transactions with affiliates. Pursuant to the SVB Agreement, the Company is required to maintain a minimum adjusted quick ratio of 1.25 to 1.00. The SVB Agreement also contains customary events of default, upon which Silicon Valley Bank may declare all or a portion of the Company’s outstanding obligations payable to be immediately due and payable. During the year ended January 31, 2021, the Company borrowed $24.3 million under its revolving line of credit facility with Silicon Valley Bank and repaid the outstanding balance under this facility during the third quarter of its fiscal 2021. The Company did not have any debt outstanding under this facility as of January 31, 2023 and 2022, respectively. The Company was in compliance with the financial covenants associated with the SVB Agreement as of January 31, 2023. |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Jan. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Non-Cancellable Purchase Commitments As of January 31, 2023, the Company had future minimum commitments for hosting and other non-cancelable obligations as follows (in thousands): Minimum Fiscal 2024 $ 71,370 Fiscal 2025 1,370 Total future minimum commitments $ 72,740 Other Obligations Indemnifications In the ordinary course of business, the Company includes standard indemnification provisions in most of its SaaS revenue arrangements with its customers. Pursuant to these provisions, the Company indemnifies these parties for losses suffered or incurred in connection with its service, breach of representations or covenants, intellectual property infringement, or other claims made against certain parties. These provisions may limit the time within which an indemnification claim can be made but are generally perpetual any time after execution of the agreement. The maximum amount of potential future indemnification is generally unlimited. It is not possible to estimate the maximum potential amount under these indemnification agreements due to limited history of prior indemnification claims and the unique facts and circumstances involved in each agreement, and the Company does not believe a loss contingency is probable. The Company has not incurred significant expense defending its licensees against third-party claims, nor has it ever incurred significant expense under its standard service warranties. Accordingly, the Company has no liabilities recorded for potential claims under these agreements as of January 31, 2023 or 2022. The Company has also agreed to indemnify its directors and executive officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of these 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 the Company, arising out of that person’s services as the Company’s director or officer or that person’s services provided to any other company or enterprise at the Company’s request. The Company maintains director and officer insurance coverage that would generally enable the Company to recover a portion of any future amounts paid. The Company may also be subject to indemnification obligations by law with respect to the actions of its employees under certain circumstances and in certain jurisdictions. No liabilities have been recorded associated with these indemnification provisions as of January 31, 2023 or 2022. Litigation and Other Matters From time to time, the Company may be a party to various legal matters, threatened claims, or proceedings in the normal course of business. Legal fees and other costs associated with such actions are expensed as incurred. The Company assesses, in conjunction with its legal counsel, the need to record a liability for litigation and contingencies. Legal accruals are recorded when and if it is determined that a loss related to a certain matter is both probable and reasonably estimable. Attorneys representing a purported class of current and former employees in various sales roles alleged potential claims of employee misclassification and related federal and state law claims, which the Company disputed. In response, the Company mediated the dispute, and in August 2020, the Company entered into a settlement agreement with the purported class counsel to resolve the dispute, which was handled in arbitration and resulted in the Company paying $4.5 million to resolve the class-wide claims during the year ended January 31, 2022. |
Revenue
Revenue | 12 Months Ended |
Jan. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue The following table presents the Company’s revenue by geographic region, based on the billing address of the customer, for the periods indicated (in thousands): Year Ended January 31, 2023 2022 2021 United States $ 234,791 $ 197,834 $ 171,142 International 65,877 44,291 31,495 Total revenue $ 300,668 $ 242,125 $ 202,637 No individual foreign country contributed 10% or more of revenue for the years ended January 31, 2023, 2022, or 2021. No customer individually accounted for 10% or more of the Company’s revenues for the years ended January 31, 2023, 2022, and 2021. Deferred Revenue and Remaining Performance Obligations The Company recognized revenue of $137.2 million and $104.7 million during the years ended January 31, 2023 and 2022, respectively, that was included in the deferred revenue balance at the beginning of the respective periods. As of January 31, 2023, future estimated revenue related to performance obligations from non-cancelable contracts that were unsatisfied or partially unsatisfied was $351.5 million and the Company expects to recognize approximately 96% as revenue for these remaining performance obligations over the next twenty-four months, with the remaining balance recognized thereafter. |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) and Equity Incentive Plans | 12 Months Ended |
Jan. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity (Deficit) and Equity Incentive Plans | Stockholders’ Equity and Equity Incentive Plans Redeemable Convertible Preferred Stock Upon the closing of the Company’s IPO, all 63,761,950 shares of redeemable convertible preferred stock were automatically converted into shares of common stock on a one-to-one basis, and the carrying value of $340.2 million was reclassified into common stock and additional paid-in-capital. As of January 31, 2023, there were no shares of redeemable convertible preferred stock issued and outstanding. Common Stock The Company’s Amended and Restated Certificate of Incorporation authorized the Company to issue 1.0 billion shares of common stock at a par value of $0.0001 as of January 31, 2023 and 2022, respectively. As of January 31, 2023 and January 31, 2022, approximately 122.4 million and 113.8 million shares of common stock were issued and outstanding, respectively. Each share of common stock is entitled to one vote. The holders of common stock are also entitled to receive dividends whenever funds are legally available and when and if declared by the board of directors, subject to the prior rights of holders of all classes of stock outstanding. As of January 31, 2023 and 2022, no dividends had been declared. The Company has reserved shares of its common stock as follows (in thousands): January 31, January 31, Warrants 11 11 Stock options outstanding 10,556 15,928 RSUs outstanding 15,699 9,502 Future issuance under equity incentive plans 9,154 12,131 Future issuance in connection with assumed options for acquisitions 45 94 Shares available subject to the 2020 ESPP Plan 2,885 2,484 Total reserved shares 38,350 40,150 Stock Plans The Company has two equity incentive plans: the 2010 Stock Plan (the “2010 Plan”) and the 2020 Equity Incentive Plan (the “2020 Plan”). The number of shares of common stock available for issuance under the 2020 Plan will be increased by any shares of common stock subject to awards outstanding under the 2010 Plan that expire or otherwise terminate without having been exercised or issued in full, are tendered to or withheld by the Company for payment of an exercise price or for satisfying tax withholding obligations, or are forfeited to or repurchased by the Company due to failure to vest . The Company has issued stock options and RSUs to employees, directors, consultants, and advisors pursuant to both the 2010 Plan and 2020 Plan. Employee stock options are granted with an exercise price no less than the fair value of the underlying common stock on the grant date, in general vest based on continuous service over four years, and expire 10 years from the date of grant. The value of RSUs is measured based on the grant date fair value of the awards and in general vest based on satisfying a service-based condition based on continuous service over four years. As of January 31, 2023, there were 9.2 million shares available for grant under the 2020 Plan. The 2020 Plan provides that the number of shares reserved will automatically increase on the first day of each fiscal year, beginning on February 1, 2021, by an amount equal to the least of (i) 12,500,000 shares, (ii) 5% of the outstanding shares of the Company’s common stock on the last day of the immediately preceding fiscal year, or (iii) such other amount as the administrator of the 2020 Plan may determine. Stock Options The Company records stock-based compensation expense for stock options based on the estimated fair value of the options on the date of the grant using the Black-Scholes option-pricing model with the assumptions included in the table below. The expected term represents the period that the Company’s stock-based awards are expected to be outstanding. The expected term assumptions were determined based on the vesting terms, exercise terms, and contractual lives of the options. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the estimated option life. The expected stock price volatility is based upon comparable public company data. The Company does not currently pay dividends. The fair value of each stock option was estimated on the date of grant using the following assumptions during the period: Year Ended January 31, 2021 Expected term (in years) 5.7 - 6.1 Risk-free interest rate 0.4% - 0.9% Expected volatility 52.5% - 55.2% Expected dividend yield — Assumptions used in valuing non-employee stock options are generally consistent with those used for employee stock options with the exception that the expected term is over the contractual life, or 10 years. The following table is a summary of option activity during the year ended January 31, 2023: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Aggregate Intrinsic Value (in thousands) (years) (in thousands) Balance at January 31, 2022 15,928 $ 4.20 5.9 $ 123,382 Options granted — $ — Options exercised (4,291) $ 3.36 Options cancelled (1,081) $ 9.24 Balance at January 31, 2023 10,556 $ 4.03 4.7 $ 82,744 Options exercisable at January 31, 2023 10,079 $ 3.77 4.6 $ 81,210 No stock options were granted during the years ended January 31, 2023 and 2022. Stock options granted during the year ended January 31, 2021 had a weighted-average grant-date fair value of $6.31 per share. The aggregate intrinsic value of options exercised during the years ended January 31, 2023, 2022, and 2021 was $24.5 million, $112.0 million, and $31.1 million, respectively. No income tax benefits have been recognized for stock-based compensation arrangements. As of January 31, 2023 and 2022, there was $2.6 million and $12.4 million, respectively, of total unrecognized compensation expense related to unvested stock options that is expected to be recognized over a weighted-average period of 0.8 years and 1.5 years, respectively. Early Exercise of Employee Options At the discretion of the Company’s board of directors, certain stock options may be exercisable immediately at the date of grant, but are subject to a repurchase right under which the Company may buy back any unvested shares at their original exercise price in the event of an employee’s termination prior to full vesting. The consideration received for an exercise of an unvested option is considered to be a deposit of the exercise price and the related dollar amount is recorded as a liability. The liabilities are reclassified into equity as the awards vest. All early exercised options were fully vested in the first quarter of fiscal 2023. As of January 31, 2022, the Company had a liability of less than $0.1 million, for 10,750 shares of common stock that were unvested and early exercised by employees. Restricted Stock Units The following table is a summary of RSU activity for the year ended January 31, 2023: Number of Weighted Average Grant Date Fair Value per Share (in thousands) Balance at January 31, 2022 9,502 $ 17.20 Granted (a) 12,962 $ 8.75 Released (3,551) $ 15.26 Forfeited (3,214) $ 14.79 Balance at January 31, 2023 15,699 $ 11.16 RSUs expected to vest at January 31, 2023 15,699 $ 11.16 ______________ (a) Includes 1,023,797 awards subject to both service-based and performance-based vesting conditions based on a 100% attainment rate. As of January 31, 2023, there was $145.6 million of total unrecognized compensation expense related to unvested RSUs. As of January 31, 2022, there was $141.1 million of total unrecognized compensation expense related to unvested RSUs, of which $1.9 million was for the RSUs subject to certain other performance metrics. As of January 31, 2023 and 2022, total unrecognized compensation expense related to unvested RSUs is expected to be recognized over a weighted-average period of 2.7 years and 3.4 years, respectively. Sensu Plans In connection with the acquisition of Sensu, the Company assumed 33,267 options to purchase shares of common stock, granted under the Sensu, Inc. Amended and Restated 2017 Equity Incentive Plan, at a weighted-average exercise price of $4.88 per share and weighted-average fair value of $17.19 per share, of which 11,724 and 29,771 options remained outstanding as of January 31, 2023 and 2022, respectively. As of January 31, 2023 and 2022, 8,589 and 11,166 options were vested and exercisable with a weighted-average exercise price of $4.77 and $4.79, and the total unrecognized compensation expense related to these awards was less than $0.1 million and $0.3 million, respectively. During the year ended January 31, 2023 17,283 options were exercised. Jask Labs Inc. Plans In connection with the acquisition of Jask Labs Inc. (“Jask Labs”), the Company assumed 265,075 options to purchase shares of common stock, granted under the Jask Labs 2015 Stock Option and Grant Plan and the Jask Labs 2018 Equity Incentive Plan, at a weighted-average exercise price of $9.86 per share and weighted-average fair value of $6.39 per share, of which 33,497 and 64,622 options remained outstanding as of January 31, 2023 and 2022, respectively. As of January 31, 2023 and 2022, 32,063 and 52,193 options were vested and exercisable with a weighted-average exercise price of $9.08 and $9.73, and the total unrecognized compensation expense related to these awards was less than $0.1 million and $0.1 million, respectively. During the year ended January 31, 2023 8,104 options were exercised. Employee Stock Purchase Plan In September 2020, the board of directors adopted and the stockholders of the Company approved the 2020 Employee Stock Purchase Plan (“ESPP”), which became effective on September 17, 2020. The ESPP was amended in September 2021. The ESPP initially reserved and authorized the issuance of up to a total of 2,000,000 shares of common stock to participating employees. The number of shares reserved under the ESPP will automatically increase on the first day of each fiscal year, starting on February 1, 2021, in an amount equal to the least of (i) 2,500,000 shares, (ii) 1% of the outstanding shares of the Company’s common stock on the last day of the immediately preceding fiscal year, or (iii) such other amount as the administrator of the ESPP may determine. The ESPP generally provides for 24-month offering periods beginning June 15 and December 15 of each year, with each offering period consisting of four six-month purchase periods. On each purchase date, eligible employees will purchase the shares at a price per share equal to 85% of the lesser of (1) the fair market value of the Company’s common stock as of the beginning of the offering period or (2) the fair market value of the Company’s common stock on the purchase date, as defined in the ESPP. Under the reset provision currently authorized, if the closing stock price on the offering date of a new offering falls below the closing stock price on the offering date of an ongoing offering, the ongoing offering would terminate immediately following the purchase of ESPP shares on the purchase date immediately preceding the new offering and participants in the terminated ongoing offering would automatically be enrolled in the new offering, resulting in a modification charge to be recognized over the new offering period. The Company recognized stock-based compensation expense related to the ESPP of $2.7 million and $5.0 million during the year ended January 31, 2023 and 2022, respectively. As of January 31, 2023 and 2022, $1.0 million and $1.3 million has been withheld on behalf of employees for a future purchase under the ESPP due to the timing of payroll deductions, respectively. As of January 31, 2023 and 2022, there was $5.8 million and $8.0 million, respectively, of unrecognized stock-based compensation expense related to the ESPP that is expected to be recognized over an average vesting period of 0.8 years. During the year ended January 31, 2023 and 2022, 736,316 and 540,993 shares of common stock were issued under the ESPP, respectively. The following table summarizes the assumptions used in the Black-Scholes option-pricing model to determine the fair value of the ESPP purchase rights: Year Ended January 31, 2023 2022 2021 Expected term (in years) 0.5 - 2.0 0.5 - 2.0 0.7 - 2.2 Risk-free interest rate 2.31% - 4.64% 0.05% - 0.69% 0.11% - 0.14% Expected volatility 58.8% - 75.5% 46.0% - 59.4% 55.4% - 65.5% Expected dividend yield — — — Pursuant to the terms of the ESPP, the next scheduled purchase under the ESPP will occur on June 15, 2023. Pursuant to the terms of the Merger Agreement, as defined in Note 14, no further offering periods or purchase periods will commence under the ESPP on or after February 9, 2023 (the date of the Merger Agreement). If the effective time of the Merger occurs prior to June 15, 2023, any offering periods or purchase periods under the ESPP that would otherwise be outstanding as of such time will be shortened and any outstanding purchase rights will be exercised no later than one business day prior to the effective time of the Merger. The ESPP will terminate immediately prior to, and contingent upon, the effective time of the Merger. See Note 14 for further discussion around the Merger. Stock-Based Compensation Expense The following table presents total stock-based compensation expense included in the consolidated statements of operations (in thousands): Year Ended January 31, 2023 2022 2021 Cost of revenue $ 1,440 $ 816 $ 510 Research and development (a) 28,329 23,781 13,728 Sales and marketing 17,902 15,941 11,532 General and administrative 15,822 13,608 15,181 Total stock-based compensation expense $ 63,493 $ 54,146 $ 40,951 ________________ (a) During the years ended January 31, 2023, 2022, and 2021, the Company capitalized stock-based compensation of $0.5 million, $0.1 million, and $0.3 million, respectively, related to internal-use software development costs. The research and development stock-based compensation amounts are presented net of the capitalized costs. In connection with the acquisition of Jask Labs, the Company granted 130,180 shares of restricted common stock, with a fair value of $12.11683 per share at the time of grant, that vest over a period of two years. During the years ended January 31, 2022 and 2021, the Company recorded $0.6 million and $0.8 million, respectively, in stock-based compensation expense related to the vesting of the restricted common stock. The awards were fully vested as of October 31, 2021. During the years ended January 31, 2023, 2022, and 2021, the Company granted 1,023,797, 105,419, and 220,000 awards, respectively, to certain executives that were subject to both service-based vesting conditions and performance-based vesting conditions. For awards granted during the year ended January 31, 2023, the total number of shares earned will be based on the Company’s performance against a specific metric for fiscal year 2023, unless such period is otherwise truncated per the terms of the award agreement. The number of shares earned and eligible for service-based vesting can range between 0% to 167% of target for our chief executive officer and between 0% and 125% for our other executives. For awards granted during the year ended January 31, 2023 and 2022, no stock-based compensation expense was recognized as the performance-based vesting conditions were not met. Of the awards granted in fiscal 2021, $0.3 million and $2.4 million of stock-based compensation expense was recognized during the years ended January 31, 2022 and 2021, respectively as the performance-based vesting conditions were met. Common Stock Transfers During the years ended January 31, 2021 certain of the Company’s existing investors acquired outstanding common stock from former employees of the Company for a purchase price greater than the fair value of the common stock at the time of the transaction. In connection with these stock transfers, the Company waived its right of first refusal and other transfer restrictions applicable to such shares. As a result, the Company recorded $0.3 million as stock-based compensation for the years ended January 31, 2021 in general and administrative expenses in the consolidated statements of operations. The amount recorded as stock-based compensation represents the difference between the price paid and the estimated fair value at the date of the transaction. |
401(k) Plan
401(k) Plan | 12 Months Ended |
Jan. 31, 2023 | |
Retirement Benefits [Abstract] | |
401(k) Plan | 401(k) Plan In November 2011, the Company adopted a 401(k) Plan that qualifies as a deferred salary arrangement under Section 401 of the Internal Revenue Code. Under the 401(k) Plan, participating employees may defer a portion of their pretax earnings not to exceed the maximum amount allowable. The Company has not made any matching contributions as of January 31, 2023 or 2022. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s loss before income taxes consisted of the following (in thousands): Year Ended January 31 2023 2022 2021 United States $ (128,495) $ (130,257) $ (82,850) International 6,489 8,818 4,069 Total $ (122,006) $ (121,439) $ (78,781) The components of the provision (benefit) for income taxes are as follows (in thousands): Year Ended January 31, 2023 2022 2021 Current: Federal $ — $ — $ — State 45 (4) 201 Foreign 2,825 1,573 1,081 Total current tax expense (benefit) $ 2,870 $ 1,569 $ 1,282 Deferred: Federal $ — $ (540) $ — State — (116) — Foreign (61) 1,013 234 Total deferred tax expense (benefit) $ (61) $ 357 $ 234 Total tax expense (benefit) $ 2,809 $ 1,926 $ 1,516 A reconciliation of the Company’s effective income tax rate to the expected income tax rate, computed by applying the federal statutory income tax rate of 21.0% for each of the years ended January 31, 2023, 2022, and 2021, to the Company’s loss before provision (benefit) for income taxes, is as follows: Year Ended January 31 2023 2022 2021 Federal tax statutory rate 21.0 % 21.0 % 21.0 % State tax, net of federal tax effect 4.8 4.3 2.1 Change in valuation allowance (31.2) (32.1) (22.9) Nondeductible expenses (0.5) 3.0 (5.0) Effect of foreign operations (1.2) (0.6) (0.6) Tax credits 5.1 2.7 4.5 Other (0.3) 0.1 (1.0) Total (2.3) % (1.6) % (1.9) % The Company’s significant components of its deferred tax assets and liabilities were as follows (in thousands): As of January 31, 2023 2022 Deferred tax assets: Accruals and reserves $ 4,655 $ 3,158 Deferred revenue 1,495 1,073 Net operating loss carryforwards 132,314 126,332 Tax credit carryforwards 23,843 17,754 Stock-based compensation 5,697 6,010 Capitalized research expenditures 21,128 — Lease liabilities 345 1,575 Gross deferred tax assets $ 189,477 $ 155,902 Less: valuation allowance (189,403) (150,963) Total deferred tax assets $ 74 $ 4,939 Deferred tax liabilities: Property and equipment $ (1,257) $ (5,769) Deferred sales commissions (2,946) (2,436) Right-of-use assets (319) (1,449) Total deferred tax liabilities $ (4,522) $ (9,654) Net deferred tax liabilities $ (4,448) $ (4,715) A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized. Management believes that, based on a number of factors, it is more likely than not that the U.S. federal and state net deferred tax assets will not be fully realized, such that a full valuation allowance has been recorded. A valuation allowance of $189.4 million, $151.0 million, and $110.2 million has been established by the Company as of January 31, 2023, 2022, and 2021, respectively. The gross change in the valuation allowance during the years ended January 31, 2023, 2022, and 2021 was an increase of $38.4 million, $40.7 million, and $18.0 million, respectively, primarily due to current year losses. Effective for tax years beginning after December 31, 2021, the Tax Cuts and Jobs Act of 2017 eliminates the right to deduct research and development expenditures for tax purposes in the period the expenses were incurred and instead requires all U.S. and foreign research and development expenditures to be amortized over five and fifteen tax years, respectively. As a result, the Company recognized a deferred tax asset for the future tax benefit of the amortization deductions of the capitalized research and development expenditures that was fully offset by a change in valuation allowance. As of January 31, 2023, the Company had net operating loss (“NOL”) carryforwards of $522.1 million for U.S. federal and $362.2 million for U.S. state income tax purposes available to offset future taxable income. The net operating losses generated during the year ended January 31, 2019 and thereafter can be carried forward indefinitely for federal purposes. The federal net operating losses generated before the year ended January 31, 2019 carry forward for a 20-year period and if unutilized will begin to expire in 2032. The California net operating loss carryforwards begin to expire in 2030. The Company also had research tax credit carryforwards of $19.6 million for U.S. federal and $13.1 million for U.S. state income tax return purposes. The federal research tax credits expire beginning in 2030, and the U.S. state tax credits can be carried forward indefinitely. Internal Revenue Code Section 382 places a limitation (the “Section 382 Limitation”) on the amount of taxable income that can be offset by net operating loss carryforwards after a change in control (generally greater than a 50% change in ownership) of a loss corporation. Generally, after a control change, a loss corporation cannot deduct operating loss carryforwards in excess of the Section 382 Limitation. Due to these “change in ownership” provisions, utilization of the net operating loss and income tax credit carryforwards may be subject to an annual limitation regarding their utilization against taxable income in future periods. The Company may have previously experienced, and may experience in the future, one or more Section 382 “changes in ownership”, however, the Company does not expect any resulting limitations on its ability to utilize its net operating loss or research tax carryovers. The Company files income tax returns in the United States federal jurisdiction, various U.S. state jurisdictions, and foreign jurisdictions. For jurisdictions in which tax filings are made, the Company is generally subject to income tax examination for all fiscal years since inception. Due to the Company’s net operating loss carryforwards, all tax years since inception remain subject to adjustment for U.S. federal and California tax returns. There are tax years which remain subject to examination in other U.S. state jurisdictions that are not material to the Company’s consolidated financial statements. In the Company’s major foreign jurisdictions – India, Italy and Poland – the tax years subsequent to 2018 remain open to examination for India, the tax years subsequent to 2016 remain open to examination for Italy and the tax years subsequent to 2016 remain open to examination for Poland. The following shows the changes in the gross amount of unrecognized tax benefits (in thousands): Year Ended January 31, 2023 2022 2021 Unrecognized tax benefits, beginning of year $ 5,610 $ 4,213 $ 3,252 Increase related to prior year tax positions 736 — 66 Decreases related to prior year tax positions — — — Increases related to current year tax positions 1,602 1,397 895 Unrecognized tax benefits, end of year $ 7,948 $ 5,610 $ 4,213 As of January 31, 2023, the Company had $7.9 million of unrecognized tax benefits. As of January 31, 2023, $1.1 million of the Company’s unrecognized tax benefits, if recognized, would affect the effective tax rate. Due to the Company’s full valuation allowance against all U.S. federal and state net deferred tax assets, the Company’s remaining unrecognized tax benefits, if recognized, would not affect the effective tax rate. The Company recognizes interest accrued related to unrecognized tax benefits and penalties as income tax expense. Related to the unrecognized tax benefits noted above, the Company accrued interest of an insignificant amount during the year ended January 31, 2023, and no penalties or interest during the years ended January 31, 2022, and 2021. The Company regularly assesses the likelihood of adverse outcomes resulting from examinations to determine the adequacy of its provision (benefit) for income taxes, and monitors the progress of ongoing discussions with tax authorities and the impact, if any, of the expected expiration of the statute of limitations in various taxing jurisdictions. The Company believes that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision (benefit) for income taxes in the period such resolution occurs. Although the timing of the resolution or closure of audits is not certain, the Company does not believe that it is reasonably possible that its unrecognized tax benefits could change within the next 12 months. The Company's accumulated undistributed foreign earnings as of January 31, 2023 have been subject to either the deemed one-time mandatory repatriation under the Tax Act or the current year income inclusion under the Global Intangible Low-Taxed Income (“GILTI”) regime for U.S. tax purposes. If the Company were to make actual distributions of some or all of these earnings, including earnings accumulated after December 31, 2017, the Company would generally incur no additional U.S. income tax but could incur U.S. state income tax and foreign withholding taxes. The Company has not accrued for these potential U.S. state income tax and foreign withholding taxes because the Company intends to permanently reinvest its foreign earnings in its international operations. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Jan. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss per Share Basic net loss per share attributable to the Company’s common stockholders is computed by dividing the net loss attributable to the Company’s common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is the same as basic net loss per share for all years presented because the effects of potentially dilutive items were anti-dilutive given the Company’s net loss position in each period presented. The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data): Year Ended January 31, 2023 2022 2021 Net loss $ (124,815) $ (123,365) $ (80,297) Weighted-average shares outstanding, basic and diluted 117,836 108,695 48,805 Net loss per share, basic and diluted $ (1.06) $ (1.13) $ (1.65) The following potential common shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented (in thousands): Year Ended January 31, 2023 2022 2021 Stock options 10,556 15,928 24,768 RSUs 16,097 9,502 3,757 ESPP 102 130 133 Warrants 11 11 32 Shares subject to repurchase 36 226 140 Assumed options for acquisitions 45 94 140 Issuable shares for acquisitions — 194 — Total anti-dilutive securities 26,847 26,085 28,970 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jan. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 9, 2023, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Serrano Parent, LLC (“Parent”) and Serrano Merger Sub, Inc (“Merger Sub”). Parent and Merger Sub are affiliates of Francisco Partners Management, L.P. The Merger Agreement provides that, subject to the terms and conditions set forth in the Merger Agreement, Merger Sub will merge with and into the Company (the “Merger”), with the Company continuing as the surviving corporation of the Merger and a wholly owned subsidiary of Parent. Per the Merger Agreement, at the time of the effective date of the Merger, each share of the Company’s common stock outstanding immediately prior to such effective time (except for certain shares specified in the Merger Agreement) will be automatically converted into the right to receive $12.05 in cash without interest thereon, subject to applicable withholding taxes. Completion of the Merger is subject to customary closing conditions set forth in the Merger Agreement, including, among other things, the adoption of the Merger Agreement by the holders of a majority of the outstanding shares of the Company’s common stock, the expiration or early termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the receipt of other specified regulatory approvals, and the absence of an order or law preventing, materially restraining, or materially impairing the consummation of the Merger. The Company is subject to customary restrictions on its ability to solicit alternative acquisition proposals from third parties and to provide non-public information to, and participate in discussions and engage in negotiations with, third parties regarding alternative acquisition proposals, subject to customary exceptions. If the Merger Agreement is terminated in certain circumstances, including by the Company in order to enter into a superior proposal or by Parent because the Company’s board of directors withdraws its recommendation in favor of the Merger, the Company would be required to pay Parent a termination fee of $52.0 million. The Merger is expected to close in the second calendar quarter of 2023. Upon consummation of the Merger, the Company will cease to be a publicly traded company and its common stock will be delisted from the Nasdaq Global Select Market. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The Company’s consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company’s consolidated financial statements and accompanying notes include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Principles of Consolidation | The Company’s consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company’s consolidated financial statements and accompanying notes include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Fiscal Year | The Company’s fiscal year ends on January 31. Unless otherwise stated, references to year in these consolidated financial statements relate to the above described fiscal year rather than calendar year. |
Segment Information | The Company operates as one operating and reportable segment. The Company’s chief operating decision maker is its chief executive officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources. |
Use of Estimates and Judgments | The preparation of the Company’s consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, as of the date of the financial statements, and the reported amounts of income and expenses during the reporting period. These estimates are based on information available as of the date of the financial statements and may involve subjective or significant judgment by the Company; therefore, actual results could differ from the Company’s estimates. The Company’s accounting policies that involve judgment include revenue recognition, period of benefit for deferred sales commissions, useful lives of acquired intangible assets and property and equipment, stock-based compensation expense including the assumptions used for estimating the fair value of common stock (prior to the closing of the IPO), capitalization of internal-use software costs, fair value of assets acquired and liabilities assumed from business combinations, incremental borrowing rate for operating leases, estimate of credit losses for accounts receivable and marketable securities, and valuation allowances associated with income taxes. |
Macroeconomic Conditions and COVID-19 | The uncertain macroeconomic environment and the ongoing COVID-19 pandemic have had and may continue to have an adverse effect on the Company’s corporate spending, operating margins, expenses, and cashflows. The Company has experienced and may continue to experience customer requests for concessions such as extended payment terms or better pricing and customer losses, including due to bankruptcy or customers ceasing operations, which may result in delays in collections or an inability to collect accounts receivable from these customers. These conditions may continue to impact the Company’s financial condition, results of operations, or liquidity continues to remain uncertain, and as of the date of issuance of these financial statements, the Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or an adjustment to the carrying value of the Company’s assets or liabilities. These estimates may change, as new events occur and additional information is obtained, which will be recognized in the consolidated financial statements as soon as they become known. Actual results could differ from those estimates, and any such differences may be material to the Company’s financial statements. |
Revenue Recognition | In accordance with ASC 606, revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration the Company expects to be entitled to receive in exchange for these services. The Company determines revenue recognition through the following steps: 1. Identification of the contract, or contracts, with the customer The Company considers the terms and conditions of the contract and its customary business practices in identifying contracts under ASC 606. The Company determines it has a contract with a customer when the contract is fully approved by both parties, it can identify each party’s rights regarding the services to be transferred, it can identify the payment terms for the services, and it has determined the customer has the ability and intent to pay and the contract has commercial substance. At contract inception, the Company evaluates 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. The Company applies 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 promised in a contract are identified based on the services and the products 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 the Company, 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. The Company’s performance obligations consist of subscription and support services. 3. Determination of the transaction price The transaction price is determined based on the consideration to which the Company expects to be entitled in exchange for transferring services to the customer. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. The Company’s policy is to exclude sales and other indirect taxes when measuring the transaction price. None of the Company’s contracts contain a significant financing component. 4. Allocation of the transaction price to the performance obligation in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price (“SSP”). The Company determines the SSP based on an observable standalone selling price when it is available, as well as other factors, including the price charged to customers, its discounting practices, and the Company’s overall pricing objectives, while maximizing observable inputs. 5. Recognition of the revenue when, or as, the Company satisfies a performance obligation 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 the Company expects to receive in exchange for those services. The Company generates all its revenue from contracts with customers. The Company generates revenue from subscriptions and support services to customers that enable them to access the Company’s cloud-based platform. Subscription arrangements with customers do not provide the customer with the right to take possession of the Company’s software at any time. Instead, customers are granted continuous access to the platform over the contractual period. A time-elapsed method is used to measure progress as control is transferred evenly over the contractual period. Accordingly, the fixed consideration related to subscription fees is generally recognized on a straight-line basis over the contract term, commencing on the date the service is made available to the customer and all other revenue recognition criteria have been met. The typical subscription term is one The Company allocates revenue to each performance obligation based on its relative standalone selling price and generally determines standalone selling prices based on a range of actual prices charged to customers. |
Accounts Receivable, Net and Contract Assets | Accounts receivable are recorded at the invoiced amount, net of allowance for credit losses. The allowance is based upon historical loss patterns, the age of each past due invoice, and expectations of forward-looking loss estimates to determine whether the allowance is appropriate. Accounts receivable deemed uncollectible are charged against the allowance for credit losses when identified. The Company performs ongoing credit evaluations of its customers. There was $0.4 million and $0.3 million recorded as an allowance for doubtful accounts for the Company’s accounts receivables as of January 31, 2023 and January 31, 2022, respectively. As of January 31, 2023 and 2022, no customer accounted for 10% or more of total accounts receivable. |
Concentrations of Risk | The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, and accounts receivable. Although the Company deposits its cash with high-quality credit rated financial institutions, the deposits, at times, may exceed federally insured limits. The Company has not experienced any losses on its deposits of cash and cash equivalents. Cash equivalents consist of money market funds and highly liquid investments that mature in three months or less at the date of purchase which are invested through financial institutions in the United States. Management believes that the institutions are financially stable and, accordingly, minimal credit risk exists. |
Foreign Currency Transactions | The functional currency of the Company’s foreign subsidiaries is the respective local currency. All asset and liability accounts of the Company’s foreign subsidiaries are translated into U.S. dollars using the exchange rate on the balance sheet date. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are recorded as a separate component on the consolidated statements of comprehensive loss. Equity transactions are translated using historical exchange rates. Expenses are translated using the average exchange rate during the year. Foreign currency transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency of the recording entity are included in interest and other income (expense), net in the Company’s consolidated statements of operations. |
Cash and Cash Equivalents | The Company’s cash and cash equivalents consist primarily of cash deposits, money market funds, and highly liquid investments that mature in three months or less at the date of purchase. |
Marketable Securities | Marketable securities consist of U.S. treasury securities, corporate debt securities, commercial paper, foreign government obligations, supranational securities, certificates of deposits, and U.S. government agency securities. The Company classifies marketable securities as available-for-sale at the time of purchase and reevaluates such classification as of each balance sheet date. Interest receivable on these securities is presented in other current assets on the consolidated balance sheets. All marketable securities are recorded at their estimated fair values. When the fair value of a marketable security declines below its amortized cost basis, the carrying value of the security will be reduced to its fair value if it is more likely than not that management is required to sell the impaired security before recovery of its amortized basis, or management has the intention to sell the security. If neither of these conditions are met, the Company determines whether any portion of the decline is due to credit losses. Any portion of that decline attributable to credit losses, to the extent expected to be nonrecoverable before the sale of the security, is recognized in the Company’s consolidated statement of operations. When the fair value of the security declines below its amortized cost basis due to changes in interest rates, such amounts are recorded in accumulated other comprehensive (loss) income and are recognized in the Company’s consolidated statement of operations only if the Company sells or intends to sell the security before recovery of its cost basis. Realized gains and losses are determined based on the specific identification method and are reported in interest and other income (expense), net in the Company’s consolidated statements of operations. |
Property and Equipment, Net | Property and equipment are stated at cost less accumulated depreciation. Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Land is not depreciated. Costs of maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. Upon retirement or sale, the cost and related accumulated depreciation and amortization are removed from the Company’s consolidated balance sheet and the resulting gain or loss is reflected in the Company’s consolidated statement of operations. The following table presents the estimated useful lives of the Company’s property and equipment: Useful Life Computer and hardware equipment 3 years Furniture and fixtures 5 years Leasehold improvements Shorter of lease term or estimated useful life Capitalized internal-use software 3 years Building 10 - 22 years |
Leases | Leases The Company enters into operating lease arrangements for real estate assets related to office space. The Company determines if an arrangement is or contains a lease at commencement by evaluating various factors, including whether a vendor’s right to substitute an identified asset is substantive. Lease classification is determined at the lease commencement date, which is the date the leased assets are made available for use. Operating leases are included in operating lease right-of-use assets, operating lease liabilities, current, and operating lease liabilities, noncurrent in the consolidated balance sheets. The Company did not have any financing leases in any of the periods presented. Operating lease right-of-use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease payments consist of the fixed payments under the arrangement, less any lease incentives, such as tenant improvement allowances. The Company elected the practical expedient which allows the Company to not allocate consideration between lease and non-lease components. Variable costs, such as maintenance and utilities based on actual usage, are not included in the measurement of right-to-use assets and lease liabilities but are expensed when the event determining the amount of variable consideration to be paid occurs. The interest rate implicit in its operating leases is not readily determinable, and therefore an incremental borrowing rate (“IBR”) is estimated to determine the present value of future payments. The estimated IBR factors in a hypothetical interest rate on a collateralized basis with similar terms, payments, and economic environments. Lease expenses are recognized on a straight-line basis over the lease term. The Company generally uses the non-cancelable lease term when recognizing the right-of-use assets and lease liabilities, unless it is reasonably certain that a renewal or termination option will be exercised. The Company accounts for lease components and non-lease components as a single lease component. Leases with a term of 12 months or less are not recognized on the consolidated balance sheets but are recognized as expense on a straight-line basis over the term of the lease. |
Capitalized Internal-Use Software Costs | The Company capitalizes certain costs related to its enterprise cloud computing services and certain projects for internal use incurred during the application development stage. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life. The Company capitalized $2.1 million and $0.2 million of internal-use software costs during the years ended January 31, 2023 and 2022, respectively. Amortization of internal-use software costs included in cost of revenue in the consolidated statements of operations was $0.6 million, $0.7 million, and $0.7 million for the years ended January 31, 2023, 2022, and 2021, respectively. As of January 31, 2023 and 2022, the Company included capitalized internal-use software costs of $2.8 million and $1.2 million within property and equipment, net, respectively. |
Goodwill and Other Acquired Intangible Assets | Goodwill represents the excess of the purchase price over the fair value of net assets acquired in connection with business combinations accounted for using the acquisition method of accounting. The Company has one reporting unit and performs such testing of goodwill in the fourth quarter of each year, or as events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. These triggering events that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of goodwill or a significant decrease in expected cash flows. The Company’s test for goodwill impairment starts with a qualitative assessment to determine whether it is necessary to perform the quantitative goodwill impairment test. If the Company determines, based on the qualitative factors, that the fair value of the reporting unit is more likely than not less than the carrying amount, then a quantitative goodwill impairment test is required. There was no impairment of goodwill recorded for the years ended January 31, 2023, 2022, or 2021. Intangible assets consist of identifiable intangible assets, primarily developed technology and customer relationships, resulting from the Company’s acquisitions. Acquired intangible assets are recorded at cost, net of accumulated amortization. Intangible assets are amortized on a straight-line basis over their estimated useful lives. Amortization costs are included in cost of revenue within the consolidated statements of operations. Long-lived assets, including intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. |
Business Combinations | The Company accounts for its acquisitions using the acquisition method of accounting. The Company allocates the fair value of purchase consideration to the tangible and intangible assets acquired, and liabilities assumed based on their estimated fair values at the acquisition date. The excess of the fair value of purchase consideration over the values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair value of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain identifiable assets include, but are not limited to, reproduction costs, expected long-term market growth, future expected operating expenses, cost build-up to support obligations, and appropriate discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Acquisition costs, such as legal and consulting fees, are expensed as incurred. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded in the consolidated statement of operations. See Note 5 for additional information regarding the Company’s acquisitions. |
Research and Development Expense | The Company’s costs related to research, design, maintenance, and minor enhancements of the Company’s platform are expensed as incurred. These costs consist primarily of personnel and related expenses, including allocated overhead costs, contractor and consulting fees related to the design, development, testing, and enhancements of the Company’s platform, and software, hardware, and cloud infrastructure fees for staging and development related to research and development activities necessary to support growth in the Company’s employee base and in the adoption of its platform. |
Advertising and Promotion Costs | Costs related to advertising and promotions of the Company’s service offerings are charged to sales and marketing expense as incurred. |
Stock-based Compensation | The Company measures and recognizes compensation expense for all stock-based payment awards granted to employees, directors, and non-employees based on the estimated fair values on the date of the grant. The fair value of options granted and purchase rights granted under the Employee Stock Purchase Plan (“ESPP”) is estimated on the grant date using the Black-Scholes option pricing model. The fair value of Restricted Stock Units (“RSUs”) is estimated on the date of grant based on the fair value of the Company’s underlying common stock. Prior to the Company’s IPO, the fair value of the Company’s common stock for financial reporting purposes was determined considering objective and subjective factors, including valuations from third-party valuation experts, and required judgment to determine the fair value of common stock for financial reporting purposes as of the date of each equity grant or modification. The Company recognizes stock-based compen sation expense for service-based awards and its ESPP purchase rights on a straight-line basis over the service period, net of actual forfeitures. The Company also has certain options and RSUs that have performance-based vesting conditions; stock-based compensation expense for such awards is recognized using an accelerated attribution method from the time the vesting condition is probable through the time the vesting condition has been achieved. Prior to the Company’s IPO, the Company recognized stock-based compensation expense for RSUs on an accelerated attribution method as the RSUs were subject to service-based and performance-based vesting conditions, which included a liquidity event condition, and in certain cases, the achievement of certain other performance metrics. None of the RSUs would vest unless the liquidity event condition was satisfied. Upon the completion of the IPO, the liquidity event condition was considered probable and the Company recognized cumulative stock-based compensation expense using the accelerated attribution method related to RSUs that had vested as of the IPO. The remaining unrecognized stock-based compensation expense related to the RSUs will be recognized over the remaining requisite service period. All RSUs granted after the IPO, under the 2020 Equity Incentive Plan (the “2020 Plan”) will not be subject to a liquidity event condition and will generally be recognized on a straight-line basis over the service period. |
Income Taxes | The Company records income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s consolidated financial statements or income tax returns. The Company recognizes deferred tax assets to the extent that the Company believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize deferred tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision (benefit) for income taxes. The Company operates in various tax jurisdictions and is subject to audit by various tax authorities. The Company provides for tax contingencies whenever it is deemed more likely than not that a tax asset has been impaired, or a tax liability has been incurred for events such as tax claims or changes in tax laws. Tax contingencies are based upon their technical merits, applicable tax law, and the specific facts and circumstances as of each reporting period. Changes in facts and circumstances could result in material changes to the amounts recorded for such tax contingencies. The Company records uncertain tax positions on the basis of a two-step process whereby (1) a determination is made as to whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position, and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is greater than 50% likely to be realized upon ultimate settlement with the related tax authority. |
Other Comprehensive (Loss) Income | includes amounts recorded in equity that are not the result of transactions with stockholders. The changes in other comprehensive (loss) income are a result of translation gains and losses for the Company’s foreign subsidiaries assets, liabilities, revenue, and expenses and unrealized gains (losses) on available-for-sale marketable securities. |
Net Loss Per Share | Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period, less any shares subject to repurchase. Diluted net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period giving effect to all potentially dilutive securities to the extent they are dilutive. Basic and diluted net loss attributable to common stockholders per share is presented in conformity with the two-class method required for participating securities as the redeemable convertible preferred stock is considered a participating security because it participates in dividends with common stock. The Company also considers the shares issued upon the early exercise of stock options subject to repurchase to be participating securities, because holders of such shares have non-forfeitable dividend rights in the event a dividend is paid on common stock. In addition, shares that are contingently issuable are excluded from the computation of basic earnings per share. Because the Company has reported a net loss for all periods presented, diluted net loss per common share is the same as basic net loss per common share for those periods. |
Related Party Transactions | Certain members of the Company’s board of directors serve as directors of, or are executive officers of, and in some cases are investors in, companies that are customers or vendors of the Company. |
Recently Adopted and Issued Accounting Pronouncements | The Company assesses the adoption impacts of recently issued accounting pronouncements by the Financial Accounting Standards Board (“FASB”) on its consolidated financial statements. The sections below describe impacts from newly adopted pronouncements. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which requires that an entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606 as if it had originated the contracts. The adoption of the standard will impact future business combinations. The Company has elected to early adopt this guidance as of February 1, 2022. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements for the year ended January 31, 2023 as no business combination activities occurred during this period. |
Fair Value Measurements | The Company measures its financial assets and liabilities at fair value each reporting period using a fair value hierarchy that prioritizes the use of observable inputs and minimizes 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, as follows: Level 1 Observable inputs, such as quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company uses the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment | The following table presents the estimated useful lives of the Company’s property and equipment: Useful Life Computer and hardware equipment 3 years Furniture and fixtures 5 years Leasehold improvements Shorter of lease term or estimated useful life Capitalized internal-use software 3 years Building 10 - 22 years Property and equipment, net, consisted of the following (in thousands): January 31, January 31, Computer and hardware equipment $ 3,556 $ 3,406 Furniture and fixtures 2,047 2,016 Leasehold improvements 2,891 3,004 Capitalized internal-use software 4,111 3,633 Building 301 311 Land 85 87 Gross property and equipment (a) 12,991 12,457 Accumulated depreciation and amortization (8,139) (7,497) Property and equipment, net $ 4,852 $ 4,960 ______________ |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present the fair value of the Company’s financial assets measured at fair value on a recurring basis, based on the three-tier fair value hierarchy (in thousands): January 31, 2023 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 62,570 $ — $ — $ 62,570 Marketable securities: U.S. treasury securities — 49,023 — 49,023 Corporate debt securities — 134,771 — 134,771 Commercial paper — 48,246 — 48,246 Foreign government obligations — 1,394 — 1,394 Certificates of deposit — 7,901 — 7,901 U.S. government agency securities — 25,521 — 25,521 Total financial assets $ 62,570 $ 266,856 $ — $ 329,426 January 31, 2022 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 70,742 $ — $ — $ 70,742 Marketable securities: U.S. treasury securities — 67,476 — 67,476 Corporate debt securities — 167,160 — 167,160 Commercial paper — 19,033 — 19,033 Foreign government obligations — 7,607 — 7,607 Supranational securities — 12,922 — 12,922 Certificates of deposit — 2,313 — 2,313 Total financial assets $ 70,742 $ 276,511 $ — $ 347,253 |
Debt Securities, Available-for-sale | The following is a summary of available-for sale marketable securities, excluding those securities classified within cash and cash equivalents on the consolidated balance sheet as of January 31, 2023 (in thousands): January 31, 2023 Amortized Cost Unrealized Gain Unrealized Loss Fair Value U.S. treasury securities $ 49,378 $ 2 $ (357) $ 49,023 Corporate debt securities 135,552 40 (821) 134,771 Commercial paper 48,277 9 (40) 48,246 Foreign government obligations 1,408 — (14) 1,394 Certificates of deposit 7,924 2 (25) 7,901 U.S. government agency securities 25,512 11 (2) 25,521 Total marketable securities $ 268,051 $ 64 $ (1,259) $ 266,856 January 31, 2022 Amortized Cost Unrealized Gain Unrealized Loss Fair Value U.S. treasury securities $ 67,770 $ — $ (294) $ 67,476 Corporate debt securities 167,693 3 (536) 167,160 Commercial paper 19,052 — (19) 19,033 Foreign government obligations 7,640 — (33) 7,607 Supranational securities 12,923 — (1) 12,922 Certificates of deposit 2,319 — (6) 2,313 Total marketable securities $ 277,397 $ 3 $ (889) $ 276,511 |
Investments Classified by Contractual Maturity Date | The following table presents the contractual maturities of the Company’s marketable securities (in thousands): January 31, Due in one year or less $ 225,643 Due after one year and within five years 41,213 Total marketable securities $ 266,856 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Property, Plant and Equipment | The following table presents the estimated useful lives of the Company’s property and equipment: Useful Life Computer and hardware equipment 3 years Furniture and fixtures 5 years Leasehold improvements Shorter of lease term or estimated useful life Capitalized internal-use software 3 years Building 10 - 22 years Property and equipment, net, consisted of the following (in thousands): January 31, January 31, Computer and hardware equipment $ 3,556 $ 3,406 Furniture and fixtures 2,047 2,016 Leasehold improvements 2,891 3,004 Capitalized internal-use software 4,111 3,633 Building 301 311 Land 85 87 Gross property and equipment (a) 12,991 12,457 Accumulated depreciation and amortization (8,139) (7,497) Property and equipment, net $ 4,852 $ 4,960 ______________ |
Long-lived Assets by Geographic Areas | The following table presents the Company’s long-lived assets by geographic region for the periods indicated (in thousands): January 31, January 31, United States $ 4,237 $ 4,133 International 615 827 Total long-lived assets $ 4,852 $ 4,960 |
Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): January 31, January 31, Accrued compensation $ 8,079 $ 10,771 Accrued sales commissions 3,645 5,624 Accrued taxes 1,044 2,022 Accrued professional services 8,428 851 Accrued other expenses 5,597 6,157 Accrued expenses and other current liabilities $ 26,793 $ 25,425 |
Acquisitions, Intangible Asse_2
Acquisitions, Intangible Assets, and Goodwill (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Acquisitions, Intangible Assets, And Goodwill [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table presents the purchase consideration allocation recorded in the Company’s consolidated balance sheet as of the acquisition date (in thousands): Amount Cash and cash equivalents $ 2,270 Accounts receivable 409 Other current assets 50 Acquired intangible assets 11,800 Goodwill 19,889 Accounts payable (49) Deferred revenue, current (658) Accrued expenses and other current liabilities (143) Deferred revenue, noncurrent (99) Other liabilities (747) Total acquisition consideration $ 32,722 The following table presents the purchase consideration allocation recorded in the Company’s consolidated balance sheet as of the acquisition date (in thousa nds): Amount Cash and cash equivalents $ 782 Accounts receivable 430 Other current assets 111 Property and equipment 435 Acquired intangible assets 17,200 Goodwill 26,623 Other assets 178 Accounts payable (262) Deferred revenue, current (340) Accrued expenses and other current liabilities (788) Deferred revenue, noncurrent (38) Other liabilities (2,654) Total acquisition consideration $ 41,677 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands): Total Useful Life Developed technology $ 8,800 3 Customer relationships 3,000 5 Intangible assets $ 11,800 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | Acquired intangible assets, net consisted of the following (in thousands): January 31, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life Developed technology $ 43,163 $ (32,471) $ 10,692 1.4 Customer relationships 3,000 (983) 2,017 3.4 Total $ 46,163 $ (33,454) $ 12,709 January 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life Developed technology $ 43,650 $ (20,046) $ 23,604 2.1 Customer relationships $ 3,000 $ (383) $ 2,617 4.4 Total $ 46,650 $ (20,429) $ 26,221 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of January 31, 2023, future amortization expense related to acquired intangible assets was as follows (in thousands): Amortization Expense 2024 $ 8,626 2025 3,266 2026 600 2027 217 Total amortization expense $ 12,709 As of January 31, 2022, future amortization expense related to acquired intangible assets was as follows (in thousands): Amortization Expense 2023 $ 13,298 2024 8,789 2025 3,317 2026 600 2027 217 Total amortization expense $ 26,221 |
Schedule of Goodwill | Changes in the carrying amount of goodwill for the year ended January 31, 2023 was as follows (in thousands): Amounts Balance as of January 31, 2022 $ 94,967 Foreign currency translation (754) Balance as of January 31, 2023 $ 94,213 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Leases [Abstract] | |
Lease, Cost | The following table presents the components of operating lease expense (in thousands): January 31, January 31, Operating lease expense $ 4,093 $ 4,467 Variable lease expense 480 496 Short-term lease expense 397 81 Sublease income (263) (217) Supplemental cash flow information and non-cash activity related to the Company’s operating leases were as follows (in thousands): January 31, January 31, Cash paid for amounts included in the measurement of lease liabilities $ 4,534 $ 4,785 |
Lessee, Operating Lease, Liability, Maturity | As of January 31, 2023, remaining maturities of lease liabilities are as follows (in thousands): Amount 2024 $ 1,658 2025 22 Total lease payments $ 1,680 Less: imputed interest (17) Present value of lease liabilities $ 1,663 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments | As of January 31, 2023, the Company had future minimum commitments for hosting and other non-cancelable obligations as follows (in thousands): Minimum Fiscal 2024 $ 71,370 Fiscal 2025 1,370 Total future minimum commitments $ 72,740 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the Company’s revenue by geographic region, based on the billing address of the customer, for the periods indicated (in thousands): Year Ended January 31, 2023 2022 2021 United States $ 234,791 $ 197,834 $ 171,142 International 65,877 44,291 31,495 Total revenue $ 300,668 $ 242,125 $ 202,637 |
Stockholders' Equity (Deficit_2
Stockholders' Equity (Deficit) and Equity Incentive Plans (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Equity [Abstract] | |
Schedule of Reserved Shares of Common Stock | The Company has reserved shares of its common stock as follows (in thousands): January 31, January 31, Warrants 11 11 Stock options outstanding 10,556 15,928 RSUs outstanding 15,699 9,502 Future issuance under equity incentive plans 9,154 12,131 Future issuance in connection with assumed options for acquisitions 45 94 Shares available subject to the 2020 ESPP Plan 2,885 2,484 Total reserved shares 38,350 40,150 |
Schedule of Stock Options Valuation Assumptions | The fair value of each stock option was estimated on the date of grant using the following assumptions during the period: Year Ended January 31, 2021 Expected term (in years) 5.7 - 6.1 Risk-free interest rate 0.4% - 0.9% Expected volatility 52.5% - 55.2% Expected dividend yield — |
Schedule of ESPP Valuation Assumptions | The following table summarizes the assumptions used in the Black-Scholes option-pricing model to determine the fair value of the ESPP purchase rights: Year Ended January 31, 2023 2022 2021 Expected term (in years) 0.5 - 2.0 0.5 - 2.0 0.7 - 2.2 Risk-free interest rate 2.31% - 4.64% 0.05% - 0.69% 0.11% - 0.14% Expected volatility 58.8% - 75.5% 46.0% - 59.4% 55.4% - 65.5% Expected dividend yield — — — |
Share-based Payment Arrangement, Option, Activity | The following table is a summary of option activity during the year ended January 31, 2023: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Aggregate Intrinsic Value (in thousands) (years) (in thousands) Balance at January 31, 2022 15,928 $ 4.20 5.9 $ 123,382 Options granted — $ — Options exercised (4,291) $ 3.36 Options cancelled (1,081) $ 9.24 Balance at January 31, 2023 10,556 $ 4.03 4.7 $ 82,744 Options exercisable at January 31, 2023 10,079 $ 3.77 4.6 $ 81,210 |
Share-based Payment Arrangement, Restricted Stock Unit, Activity | The following table is a summary of RSU activity for the year ended January 31, 2023: Number of Weighted Average Grant Date Fair Value per Share (in thousands) Balance at January 31, 2022 9,502 $ 17.20 Granted (a) 12,962 $ 8.75 Released (3,551) $ 15.26 Forfeited (3,214) $ 14.79 Balance at January 31, 2023 15,699 $ 11.16 RSUs expected to vest at January 31, 2023 15,699 $ 11.16 ______________ (a) Includes 1,023,797 awards subject to both service-based and performance-based vesting conditions based on a 100% attainment rate. |
Share-based Payment Arrangement, Expensed and Capitalized, Amount | The following table presents total stock-based compensation expense included in the consolidated statements of operations (in thousands): Year Ended January 31, 2023 2022 2021 Cost of revenue $ 1,440 $ 816 $ 510 Research and development (a) 28,329 23,781 13,728 Sales and marketing 17,902 15,941 11,532 General and administrative 15,822 13,608 15,181 Total stock-based compensation expense $ 63,493 $ 54,146 $ 40,951 ________________ (a) During the years ended January 31, 2023, 2022, and 2021, the Company capitalized stock-based compensation of $0.5 million, $0.1 million, and $0.3 million, respectively, related to internal-use software development costs. The research and development stock-based compensation amounts are presented net of the capitalized costs. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The Company’s loss before income taxes consisted of the following (in thousands): Year Ended January 31 2023 2022 2021 United States $ (128,495) $ (130,257) $ (82,850) International 6,489 8,818 4,069 Total $ (122,006) $ (121,439) $ (78,781) |
Schedule of Components of Income Tax Expense (Benefit) | The components of the provision (benefit) for income taxes are as follows (in thousands): Year Ended January 31, 2023 2022 2021 Current: Federal $ — $ — $ — State 45 (4) 201 Foreign 2,825 1,573 1,081 Total current tax expense (benefit) $ 2,870 $ 1,569 $ 1,282 Deferred: Federal $ — $ (540) $ — State — (116) — Foreign (61) 1,013 234 Total deferred tax expense (benefit) $ (61) $ 357 $ 234 Total tax expense (benefit) $ 2,809 $ 1,926 $ 1,516 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the Company’s effective income tax rate to the expected income tax rate, computed by applying the federal statutory income tax rate of 21.0% for each of the years ended January 31, 2023, 2022, and 2021, to the Company’s loss before provision (benefit) for income taxes, is as follows: Year Ended January 31 2023 2022 2021 Federal tax statutory rate 21.0 % 21.0 % 21.0 % State tax, net of federal tax effect 4.8 4.3 2.1 Change in valuation allowance (31.2) (32.1) (22.9) Nondeductible expenses (0.5) 3.0 (5.0) Effect of foreign operations (1.2) (0.6) (0.6) Tax credits 5.1 2.7 4.5 Other (0.3) 0.1 (1.0) Total (2.3) % (1.6) % (1.9) % |
Schedule of Deferred Tax Assets and Liabilities | The Company’s significant components of its deferred tax assets and liabilities were as follows (in thousands): As of January 31, 2023 2022 Deferred tax assets: Accruals and reserves $ 4,655 $ 3,158 Deferred revenue 1,495 1,073 Net operating loss carryforwards 132,314 126,332 Tax credit carryforwards 23,843 17,754 Stock-based compensation 5,697 6,010 Capitalized research expenditures 21,128 — Lease liabilities 345 1,575 Gross deferred tax assets $ 189,477 $ 155,902 Less: valuation allowance (189,403) (150,963) Total deferred tax assets $ 74 $ 4,939 Deferred tax liabilities: Property and equipment $ (1,257) $ (5,769) Deferred sales commissions (2,946) (2,436) Right-of-use assets (319) (1,449) Total deferred tax liabilities $ (4,522) $ (9,654) Net deferred tax liabilities $ (4,448) $ (4,715) |
Schedule of Unrecognized Tax Benefits Roll Forward | The following shows the changes in the gross amount of unrecognized tax benefits (in thousands): Year Ended January 31, 2023 2022 2021 Unrecognized tax benefits, beginning of year $ 5,610 $ 4,213 $ 3,252 Increase related to prior year tax positions 736 — 66 Decreases related to prior year tax positions — — — Increases related to current year tax positions 1,602 1,397 895 Unrecognized tax benefits, end of year $ 7,948 $ 5,610 $ 4,213 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data): Year Ended January 31, 2023 2022 2021 Net loss $ (124,815) $ (123,365) $ (80,297) Weighted-average shares outstanding, basic and diluted 117,836 108,695 48,805 Net loss per share, basic and diluted $ (1.06) $ (1.13) $ (1.65) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following potential common shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented (in thousands): Year Ended January 31, 2023 2022 2021 Stock options 10,556 15,928 24,768 RSUs 16,097 9,502 3,757 ESPP 102 130 133 Warrants 11 11 32 Shares subject to repurchase 36 226 140 Assumed options for acquisitions 45 94 140 Issuable shares for acquisitions — 194 — Total anti-dilutive securities 26,847 26,085 28,970 |
Description of Business and B_2
Description of Business and Basis of Presentation (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Oct. 09, 2020 | Sep. 21, 2020 | Oct. 09, 2020 | Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | Feb. 28, 2021 | |
Subsidiary, Sale of Stock [Line Items] | |||||||
Underwriters' discounts and commissions and offering costs | $ 0 | $ 93 | $ 4,362 | ||||
Convertible preferred stock converted into common stock per share (in shares) | 1 | ||||||
Deferred offering costs | $ 6,500 | ||||||
Common Stock | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Conversion of convertible redeemable preferred stock to common stock upon initial public stock offering (in shares) | 63,761,950 | 63,762,000 | |||||
Redeemable convertible preferred stock warrants | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Number of redeemable convertible preferred stock warrants converted (in shares) | 32,276 | 32,276 | |||||
Number of redeemable convertible preferred stock warrants converted per share (in shares) | 1 | ||||||
IPO | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Number of shares sold (in shares) | 14,800,000 | ||||||
Price of shares sold (in USD per share) | $ 22 | $ 22 | $ 22 | ||||
Net proceeds from shares sold | $ 342,700 | ||||||
Underwriters' discounts and commissions and offering costs | $ 31,800 | ||||||
Underwriter's Option | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Number of shares sold (in shares) | 2,220,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | 12 Months Ended | ||
Jan. 31, 2023 USD ($) reportingUnit segment | Jan. 31, 2022 USD ($) | Jan. 31, 2021 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Number of operating segments | segment | 1 | ||
Number of reporting segments | segment | 1 | ||
Stock-based compensation expense | $ 63,493,000 | $ 54,146,000 | $ 40,951,000 |
Allowance for doubtful accounts for accounts receivable | 400,000 | 300,000 | |
Unbilled receivables | 3,100,000 | 1,900,000 | |
Contract assets | $ 0 | 0 | |
Amortization period for deferred sales commissions | 5 years | ||
Costs capitalized during period | $ 20,800,000 | 25,000,000 | |
Amortized costs during period | 20,200,000 | 15,800,000 | 11,500,000 |
Impairment loss | 0 | 0 | 0 |
Foreign currency transaction gains (losses) | 200,000 | (400,000) | (400,000) |
Software capitalized | 2,100,000 | 200,000 | |
Amortization of internal-use software | 600,000 | 700,000 | 700,000 |
Internal-use software | 2,800,000 | 1,200,000 | |
Impairment of capitalized internal-use software | $ 0 | 0 | 0 |
Number of reporting units | reportingUnit | 1 | ||
Impairment of goodwill | $ 0 | 0 | 0 |
Impairment of intangible assets | 0 | 0 | 0 |
Costs related to advertising and promotions | 8,900,000 | 6,500,000 | 7,200,000 |
Other comprehensive loss | (2,225,000) | (4,288,000) | 200,000 |
Cash payments from related party transaction | $ 0 | 0 | $ 1,500,000 |
Furniture and fixtures | |||
Restructuring Cost and Reserve [Line Items] | |||
Useful Life | 5 years | ||
Minimum | |||
Restructuring Cost and Reserve [Line Items] | |||
Subscription term | 1 year | ||
Maximum | |||
Restructuring Cost and Reserve [Line Items] | |||
Subscription term | 3 years | ||
COVID-19 Pandemic | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance | 1,200,000 | ||
Stock-based compensation expense | $ 100,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Details) | 12 Months Ended |
Jan. 31, 2023 | |
Computer and hardware equipment | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 3 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 5 years |
Capitalized internal-use software | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 3 years |
Building | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 10 years |
Building | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 22 years |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Cash equivalents: | ||
Marketable securities: | $ 266,856 | $ 276,511 |
U.S. treasury securities | ||
Cash equivalents: | ||
Marketable securities: | 49,023 | 67,476 |
Corporate debt securities | ||
Cash equivalents: | ||
Marketable securities: | 134,771 | 167,160 |
Commercial paper | ||
Cash equivalents: | ||
Marketable securities: | 48,246 | 19,033 |
Foreign government obligations | ||
Cash equivalents: | ||
Marketable securities: | 1,394 | 7,607 |
Supranational securities | ||
Cash equivalents: | ||
Marketable securities: | 12,922 | |
Certificates of deposit | ||
Cash equivalents: | ||
Marketable securities: | 7,901 | 2,313 |
U.S. government agency securities | ||
Cash equivalents: | ||
Marketable securities: | 25,521 | |
Fair Value, Recurring | ||
Cash equivalents: | ||
Cash equivalents: | 62,570 | 70,742 |
Total financial assets | 329,426 | 347,253 |
Fair Value, Recurring | Level 1 | ||
Cash equivalents: | ||
Cash equivalents: | 62,570 | 70,742 |
Total financial assets | 62,570 | 70,742 |
Fair Value, Recurring | Level 2 | ||
Cash equivalents: | ||
Cash equivalents: | 0 | 0 |
Total financial assets | 266,856 | 276,511 |
Fair Value, Recurring | Level 3 | ||
Cash equivalents: | ||
Cash equivalents: | 0 | 0 |
Total financial assets | 0 | 0 |
Fair Value, Recurring | U.S. treasury securities | ||
Cash equivalents: | ||
Marketable securities: | 49,023 | 67,476 |
Fair Value, Recurring | U.S. treasury securities | Level 1 | ||
Cash equivalents: | ||
Marketable securities: | 0 | 0 |
Fair Value, Recurring | U.S. treasury securities | Level 2 | ||
Cash equivalents: | ||
Marketable securities: | 49,023 | 67,476 |
Fair Value, Recurring | U.S. treasury securities | Level 3 | ||
Cash equivalents: | ||
Marketable securities: | 0 | 0 |
Fair Value, Recurring | Corporate debt securities | ||
Cash equivalents: | ||
Marketable securities: | 134,771 | 167,160 |
Fair Value, Recurring | Corporate debt securities | Level 1 | ||
Cash equivalents: | ||
Marketable securities: | 0 | 0 |
Fair Value, Recurring | Corporate debt securities | Level 2 | ||
Cash equivalents: | ||
Marketable securities: | 134,771 | 167,160 |
Fair Value, Recurring | Corporate debt securities | Level 3 | ||
Cash equivalents: | ||
Marketable securities: | 0 | 0 |
Fair Value, Recurring | Commercial paper | ||
Cash equivalents: | ||
Marketable securities: | 48,246 | 19,033 |
Fair Value, Recurring | Commercial paper | Level 1 | ||
Cash equivalents: | ||
Marketable securities: | 0 | 0 |
Fair Value, Recurring | Commercial paper | Level 2 | ||
Cash equivalents: | ||
Marketable securities: | 48,246 | 19,033 |
Fair Value, Recurring | Commercial paper | Level 3 | ||
Cash equivalents: | ||
Marketable securities: | 0 | 0 |
Fair Value, Recurring | Foreign government obligations | ||
Cash equivalents: | ||
Marketable securities: | 1,394 | 7,607 |
Fair Value, Recurring | Foreign government obligations | Level 1 | ||
Cash equivalents: | ||
Marketable securities: | 0 | 0 |
Fair Value, Recurring | Foreign government obligations | Level 2 | ||
Cash equivalents: | ||
Marketable securities: | 1,394 | 7,607 |
Fair Value, Recurring | Foreign government obligations | Level 3 | ||
Cash equivalents: | ||
Marketable securities: | 0 | 0 |
Fair Value, Recurring | Supranational securities | ||
Cash equivalents: | ||
Marketable securities: | 12,922 | |
Fair Value, Recurring | Supranational securities | Level 1 | ||
Cash equivalents: | ||
Marketable securities: | 0 | |
Fair Value, Recurring | Supranational securities | Level 2 | ||
Cash equivalents: | ||
Marketable securities: | 12,922 | |
Fair Value, Recurring | Supranational securities | Level 3 | ||
Cash equivalents: | ||
Marketable securities: | 0 | |
Fair Value, Recurring | Certificates of deposit | ||
Cash equivalents: | ||
Marketable securities: | 7,901 | 2,313 |
Fair Value, Recurring | Certificates of deposit | Level 1 | ||
Cash equivalents: | ||
Marketable securities: | 0 | 0 |
Fair Value, Recurring | Certificates of deposit | Level 2 | ||
Cash equivalents: | ||
Marketable securities: | 7,901 | 2,313 |
Fair Value, Recurring | Certificates of deposit | Level 3 | ||
Cash equivalents: | ||
Marketable securities: | 0 | $ 0 |
Fair Value, Recurring | U.S. government agency securities | ||
Cash equivalents: | ||
Marketable securities: | 25,521 | |
Fair Value, Recurring | U.S. government agency securities | Level 1 | ||
Cash equivalents: | ||
Marketable securities: | 0 | |
Fair Value, Recurring | U.S. government agency securities | Level 2 | ||
Cash equivalents: | ||
Marketable securities: | 25,521 | |
Fair Value, Recurring | U.S. government agency securities | Level 3 | ||
Cash equivalents: | ||
Marketable securities: | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 12 Months Ended | ||||
Jan. 31, 2023 | Jan. 31, 2022 | Feb. 28, 2021 | Jan. 31, 2021 | Sep. 21, 2020 | |
Class of Warrant or Right [Line Items] | |||||
Restricted cash | $ 300,000 | $ 300,000 | $ 300,000 | ||
Transfers in and out of level 3, liabilities | 0 | 0 | |||
Transfers in and out of level 3, assets | 0 | ||||
Impairment loss | $ 0 | $ 0 | |||
Redeemable convertible preferred stock warrants | |||||
Class of Warrant or Right [Line Items] | |||||
Number of redeemable convertible preferred stock warrants converted (in shares) | 32,276 | 32,276 | |||
Warrants exercised (in shares) | 0 | 21,746 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of AFS Securities (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 268,051 | $ 277,397 |
Unrealized Gain | 64 | 3 |
Unrealized Loss | (1,259) | (889) |
Marketable securities: | 266,856 | 276,511 |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 49,378 | 67,770 |
Unrealized Gain | 2 | 0 |
Unrealized Loss | (357) | (294) |
Marketable securities: | 49,023 | 67,476 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 135,552 | 167,693 |
Unrealized Gain | 40 | 3 |
Unrealized Loss | (821) | (536) |
Marketable securities: | 134,771 | 167,160 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 48,277 | 19,052 |
Unrealized Gain | 9 | 0 |
Unrealized Loss | (40) | (19) |
Marketable securities: | 48,246 | 19,033 |
Foreign government obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,408 | 7,640 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | (14) | (33) |
Marketable securities: | 1,394 | 7,607 |
Supranational securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 12,923 | |
Unrealized Gain | 0 | |
Unrealized Loss | (1) | |
Marketable securities: | 12,922 | |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,924 | 2,319 |
Unrealized Gain | 2 | 0 |
Unrealized Loss | (25) | (6) |
Marketable securities: | 7,901 | $ 2,313 |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 25,512 | |
Unrealized Gain | 11 | |
Unrealized Loss | (2) | |
Marketable securities: | $ 25,521 |
Fair Value Measurements - Matur
Fair Value Measurements - Maturities (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Fair Value Disclosures [Abstract] | ||
Due in one year or less | $ 225,643 | |
Due after one year and within five years | 41,213 | |
Total marketable securities | $ 266,856 | $ 276,511 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 12,991 | $ 12,457 |
Accumulated depreciation and amortization | (8,139) | (7,497) |
Property and equipment, net | 4,852 | 4,960 |
Computer and hardware equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 3,556 | 3,406 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 2,047 | 2,016 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 2,891 | 3,004 |
Capitalized internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 4,111 | 3,633 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 301 | 311 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 85 | 87 |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 100 |
Balance Sheet Components - Narr
Balance Sheet Components - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Depreciation and amortization expense | $ 2,600,000 | $ 2,000,000 | $ 1,500,000 |
Impairment of capitalized internal-use software | $ 0 | $ 0 | $ 0 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Long-Lived Assets by Geographical Location (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 4,852 | $ 4,960 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 4,237 | 4,133 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 615 | $ 827 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Liabilities and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Property, Plant and Equipment [Abstract] | ||
Accrued compensation | $ 8,079 | $ 10,771 |
Accrued sales commissions | 3,645 | 5,624 |
Accrued taxes | 1,044 | 2,022 |
Accrued professional services | 8,428 | 851 |
Accrued other expenses | 5,597 | 6,157 |
Accrued expenses and other current liabilities | $ 26,793 | $ 25,425 |
Acquisitions, Intangible Asse_3
Acquisitions, Intangible Assets, and Goodwill - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Jun. 10, 2021 | May 24, 2021 | Jul. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Business Acquisition [Line Items] | ||||||
Common stock and assumed awards issued as consideration for acquisitions | $ 0 | $ 30,499,000 | $ 0 | |||
Stock-based compensation expense | 63,493,000 | 54,146,000 | 40,951,000 | |||
Amortization expense for intangible assets | 13,000,000 | 12,100,000 | 6,800,000 | |||
Impairment for intangible assets | 0 | 0 | 0 | |||
Write-off of fully amortized intangible assets | 1,000,000 | |||||
Impairment of goodwill | 0 | 0 | 0 | |||
General and administrative | ||||||
Business Acquisition [Line Items] | ||||||
Stock-based compensation expense | 15,822,000 | $ 13,608,000 | $ 15,181,000 | |||
Acquisition-related expenses | $ 3,800,000 | |||||
Developed Technology Rights | ||||||
Business Acquisition [Line Items] | ||||||
Weighted average remaining useful life | 1 year 4 months 24 days | 2 years 1 month 6 days | ||||
Sensu, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Purchase consideration | $ 32,700,000 | $ 500,000 | ||||
Cash paid | $ 8,600,000 | |||||
Escrow term | 12 months | |||||
Business acquisition, goodwill, expected tax deductible amount | $ 0 | |||||
Sensu, Inc. | Developed Technology Rights | ||||||
Business Acquisition [Line Items] | ||||||
Weighted average remaining useful life | 3 years | |||||
Sensu, Inc. | Restricted Stock | ||||||
Business Acquisition [Line Items] | ||||||
Awards granted, fair value (in USD per share) | $ 21.49 | |||||
Awards granted (in shares) | 71,644 | |||||
Vesting period | 1 year 6 months | |||||
Stock-based compensation expense | $ 300,000 | $ 700,000 | ||||
Sensu, Inc. | Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Common stock and assumed awards issued as consideration for acquisitions | $ 24,100,000 | |||||
Equity issued (in shares) | 1,123,697 | |||||
Business acquisition, share price (in shares) | $ 21.49 | |||||
Sensu, Inc. | Option | ||||||
Business Acquisition [Line Items] | ||||||
Equity issued and stock-based compensation expense | $ 600,000 | |||||
DF Labs S.p.A. | ||||||
Business Acquisition [Line Items] | ||||||
Purchase consideration | $ 41,700,000 | |||||
Cash paid | $ 35,300,000 | |||||
Escrow term | 12 months | |||||
Business acquisition, goodwill, expected tax deductible amount | $ 0 | |||||
DF Labs S.p.A. | Developed Technology Rights | ||||||
Business Acquisition [Line Items] | ||||||
Weighted average remaining useful life | 3 years | |||||
DF Labs S.p.A. | Restricted Stock | ||||||
Business Acquisition [Line Items] | ||||||
Awards granted, fair value (in USD per share) | $ 18.97 | |||||
Awards granted (in shares) | 143,492 | |||||
Vesting period | 2 years | |||||
Stock-based compensation expense | 1,400,000 | $ 900,000 | ||||
Unrecognized stock-based compensation | $ 400,000 | |||||
DF Labs S.p.A. | Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Common stock and assumed awards issued as consideration for acquisitions | $ 6,400,000 | |||||
Equity issued (in shares) | 334,815 |
Acquisitions, Intangible Asse_4
Acquisitions, Intangible Assets, and Goodwill - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 | Jun. 10, 2021 | May 24, 2021 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 94,213 | $ 94,967 | ||
Sensu, Inc. | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 2,270 | |||
Accounts receivable | 409 | |||
Other current assets | 50 | |||
Acquired intangible assets | 11,800 | |||
Goodwill | 19,889 | |||
Accounts payable | (49) | |||
Deferred revenue, current | (658) | |||
Accrued expenses and other current liabilities | (143) | |||
Deferred revenue, noncurrent | (99) | |||
Other liabilities | (747) | |||
Total acquisition consideration | $ 32,722 | |||
DF Labs S.p.A. | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 782 | |||
Accounts receivable | 430 | |||
Other current assets | 111 | |||
Property and equipment | 435 | |||
Acquired intangible assets | 17,200 | |||
Goodwill | 26,623 | |||
Other assets | 178 | |||
Accounts payable | (262) | |||
Deferred revenue, current | (340) | |||
Accrued expenses and other current liabilities | (788) | |||
Deferred revenue, noncurrent | (38) | |||
Other liabilities | (2,654) | |||
Total acquisition consideration | $ 41,677 |
Acquisitions, Intangible Asse_5
Acquisitions, Intangible Assets, and Goodwill - Schedule of Identifiable Intangible Assets Acquired (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 10, 2021 | Jan. 31, 2023 | Jan. 31, 2022 | |
Developed Technology Rights | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Useful life (in years) | 1 year 4 months 24 days | 2 years 1 month 6 days | |
Customer Relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Useful life (in years) | 3 years 4 months 24 days | 4 years 4 months 24 days | |
Sensu, Inc. | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 11,800 | ||
Sensu, Inc. | Developed Technology Rights | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 8,800 | ||
Useful life (in years) | 3 years | ||
Sensu, Inc. | Customer Relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 3,000 | ||
Useful life (in years) | 5 years |
Acquisitions, Intangible Asse_6
Acquisitions, Intangible Assets, and Goodwill - Acquired Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 46,163 | $ 46,650 |
Accumulated Amortization | (33,454) | (20,429) |
Total amortization expense | 12,709 | 26,221 |
Developed Technology Rights | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 43,163 | 43,650 |
Accumulated Amortization | (32,471) | (20,046) |
Total amortization expense | $ 10,692 | $ 23,604 |
Weighted average remaining useful life | 1 year 4 months 24 days | 2 years 1 month 6 days |
Customer Relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 3,000 | $ 3,000 |
Accumulated Amortization | (983) | (383) |
Total amortization expense | $ 2,017 | $ 2,617 |
Weighted average remaining useful life | 3 years 4 months 24 days | 4 years 4 months 24 days |
Acquisitions, Intangible Asse_7
Acquisitions, Intangible Assets, and Goodwill - Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 |
Acquisitions, Intangible Assets, And Goodwill [Abstract] | ||
Year one | $ 8,626 | $ 13,298 |
Year two | 3,266 | 8,789 |
Year three | 600 | 3,317 |
Year four | 217 | 600 |
Year five | 217 | |
Total amortization expense | $ 12,709 | $ 26,221 |
Acquisitions, Intangible Asse_8
Acquisitions, Intangible Assets, and Goodwill - Schedule of Goodwill (Details) $ in Thousands | 12 Months Ended |
Jan. 31, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Balance as of January 31, 2022 | $ 94,967 |
Foreign currency translation | (754) |
Balance as of January 31, 2023 | $ 94,213 |
Leases - Narrative (Details)
Leases - Narrative (Details) squareFeet in Thousands, $ in Thousands | 12 Months Ended | |
Jan. 31, 2023 USD ($) squareFeet | Jan. 31, 2021 USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Renewal term | 5 years | |
Gain on termination of lease | $ 100 | |
Present value of lease liabilities | $ 1,663 | |
Weighted average remaining lease term | 7 months 6 days | |
Weighted average discount rate | 3% | |
Rent expense | $ 3,300 | |
CALIFORNIA | ||
Lessee, Lease, Description [Line Items] | ||
Lease square feet | squareFeet | 24 | |
Present value of lease liabilities | $ 10,600 |
Leases - Components of Operatin
Leases - Components of Operating Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
Leases [Abstract] | ||
Operating lease expense | $ 4,093 | $ 4,467 |
Variable lease expense | 480 | 496 |
Short-term lease expense | 397 | 81 |
Sublease Income | $ (263) | $ (217) |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 4,534 | $ 4,785 |
Leases - Remaining Maturities o
Leases - Remaining Maturities of Lease Liabilities (Details) $ in Thousands | Jan. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 1,658 |
2025 | 22 |
Total lease payments | 1,680 |
Less: imputed interest | (17) |
Present value of lease liabilities | $ 1,663 |
Debt (Details)
Debt (Details) - Line of Credit - Revolving Credit Facility - USD ($) | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2021 | Jan. 31, 2021 | Jan. 31, 2023 | Jan. 31, 2022 | |
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 50,000,000 | |||
Quick ratio, minimum | 1.25 | |||
Borrowings | $ 24,300,000 | |||
Balance outstanding | $ 0 | $ 0 | ||
Minimum | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 2.50% | |||
Maximum | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 3% | |||
Prime Rate | Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.25% | |||
Prime Rate | Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.75% |
Commitment and Contingencies -
Commitment and Contingencies - Narrative (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2023 | |
Loss Contingencies [Line Items] | ||
Payments for Legal Settlements | $ 4,500,000 | |
Indemnifications | SAAS Revenue Arrangements with Customers | ||
Loss Contingencies [Line Items] | ||
Accrual for settlement | 0 | $ 0 |
Indemnifications | Indemnifications for Directors and Officers | ||
Loss Contingencies [Line Items] | ||
Accrual for settlement | $ 0 | $ 0 |
Commitment and Contingencies _2
Commitment and Contingencies - Future Other Obligations (Details) $ in Thousands | Jan. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Fiscal 2024 | $ 71,370 |
Fiscal 2025 | 1,370 |
Total future minimum commitments | $ 72,740 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 300,668 | $ 242,125 | $ 202,637 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 234,791 | 197,834 | 171,142 |
International | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 65,877 | $ 44,291 | $ 31,495 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized that was included in deferred revenue at beginning of period | $ 137.2 | $ 104.7 |
Revenue - Performance Obligatio
Revenue - Performance Obligation (Details) $ in Millions | Jan. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation | $ 351.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-02-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 96% |
Performance obligation, timing | 24 months |
Stockholders' Equity (Deficit_3
Stockholders' Equity (Deficit) and Equity Incentive Plans - Stocks Reserved for Future Issuance (Details) - shares | Jan. 31, 2023 | Jan. 31, 2022 | Sep. 17, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for issuance (in shares) | 38,350,000 | 40,150,000 | |
Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for issuance (in shares) | 45,000 | 94,000 | |
Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for issuance (in shares) | 10,556,000 | 15,928,000 | |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for issuance (in shares) | 15,699,000 | 9,502,000 | |
Future issuance under equity incentive plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for issuance (in shares) | 9,154,000 | 12,131,000 | |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for issuance (in shares) | 2,885,000 | 2,484,000 | 2,000,000 |
Warrants | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for issuance (in shares) | 11,000 | 11,000 |
Stockholders' Equity (Deficit_4
Stockholders' Equity (Deficit) and Equity Incentive Plans - Narrative (Details) | 12 Months Ended | |||||||
Jun. 10, 2021 $ / shares shares | Sep. 21, 2020 USD ($) shares | Sep. 17, 2020 period shares | Oct. 25, 2019 $ / shares shares | Jan. 31, 2023 USD ($) plan vote $ / shares shares | Jan. 31, 2022 USD ($) $ / shares shares | Jan. 31, 2021 USD ($) $ / shares shares | Jan. 31, 2020 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Convertible preferred stock converted into common stock (in shares) | 63,761,950 | 63,762,000 | ||||||
Convertible preferred stock converted into common stock per share (in shares) | 1 | |||||||
Convertible preferred stock converted into common stock | $ | $ 340,200,000 | $ 340,167,000 | ||||||
Convertible preferred stock, shares issued (in shares) | 0 | |||||||
Convertible preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | 63,762,000 | ||||
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 | ||||||
Common stock, par value (in USD per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||||
Common stock, shares issued (in shares) | 122,388,000 | 113,813,000 | ||||||
Common stock, shares outstanding (in shares) | 122,388,000 | 113,813,000 | ||||||
Number of votes per share | vote | 1 | |||||||
Dividends declared (in USD per share) | $ / shares | $ 0 | $ 0 | ||||||
Number of plans | plan | 2 | |||||||
Liability for early exercise of options | $ | $ 100,000 | |||||||
Early exercise of options (in shares) | 10,750 | |||||||
Number of shares available for issuance (in shares) | 38,350,000 | 40,150,000 | ||||||
Stock-based compensation expense | $ | $ 63,493,000 | $ 54,146,000 | $ 40,951,000 | |||||
Amount with held from employees for future purchases | $ | 1,000,000 | 1,300,000 | ||||||
Common Stock Transfers, Former Employees | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | $ | 300,000 | |||||||
General and administrative | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | $ | 15,822,000 | 13,608,000 | 15,181,000 | |||||
Research and development | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | $ | 28,329,000 | 23,781,000 | 13,728,000 | |||||
Sales and marketing | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | $ | 17,902,000 | 15,941,000 | 11,532,000 | |||||
Cost of revenue | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | $ | $ 1,440,000 | $ 816,000 | $ 510,000 | |||||
Chief Executive Officer | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of shares eligible for vesting | 0% | |||||||
Chief Executive Officer | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of shares eligible for vesting | 167% | |||||||
Other Executives | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of shares eligible for vesting | 0% | |||||||
Other Executives | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of shares eligible for vesting | 125% | |||||||
Option | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 4 years | |||||||
Expiration period | 10 years | 10 years | ||||||
Number of shares available for issuance (in shares) | 10,556,000 | 15,928,000 | ||||||
Option, performance based | Executive Officers | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options granted (in shares) | 1,023,797 | 105,419 | 220,000 | |||||
Stock-based compensation expense | $ | $ 300,000 | $ 2,400,000 | ||||||
RSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 4 years | |||||||
Number of shares available for issuance (in shares) | 15,699,000 | 9,502,000 | ||||||
ESPP | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of additional shares available for grant per year (in shares) | 2,500,000 | |||||||
Number of additional shares available for grant per year percentage | 1% | |||||||
Unrecognized compensation expense, period for recognition | 9 months 18 days | 9 months 18 days | ||||||
Share-based payment awards (in shares) | 736,316 | 540,993 | ||||||
Unrecognized stock-based compensation, excluding options | $ | $ 5,800,000 | $ 8,000,000 | ||||||
Number of shares available for issuance (in shares) | 2,000,000 | 2,885,000 | 2,484,000 | |||||
Offering period | 24 months | |||||||
Number of purchase periods | period | 4 | |||||||
Purchase period | 6 months | |||||||
Purchase price of common stock, percent | 85% | |||||||
Stock-based compensation expense | $ | $ 2,700,000 | $ 5,000,000 | ||||||
Restricted Stock | Jask Labs Inc. | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 2 years | |||||||
Stock-based compensation expense | $ | 600,000 | $ 800,000 | ||||||
Awards granted (in shares) | 130,180 | |||||||
Awards granted, fair value (in USD per share) | $ / shares | $ 12.11683 | |||||||
Restricted Stock | Sensu, Inc. | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 1 year 6 months | |||||||
Stock-based compensation expense | $ | $ 300,000 | $ 700,000 | ||||||
Awards granted (in shares) | 71,644 | |||||||
Awards granted, fair value (in USD per share) | $ / shares | $ 21.49 | |||||||
2020 Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares available for grant (in shares) | 9,200,000 | |||||||
Number of additional shares available for grant per year (in shares) | 12,500,000 | |||||||
Number of additional shares available for grant per year percentage | 5% | |||||||
Equity Incentive Plans | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options granted, weighted average grant date fair value (in USD per share) | $ / shares | $ 6.31 | |||||||
Options exercised, aggregate intrinsic value | $ | $ 24,500,000 | $ 112,000,000 | $ 31,100,000 | |||||
Income tax benefits recognized for stock-based compensation arrangements | $ | 0 | 0 | ||||||
Unrecognized compensation expense related to options | $ | $ 2,600,000 | $ 12,400,000 | ||||||
Options granted (in shares) | 0 | 0 | ||||||
Options granted (in USD per share) | $ / shares | $ 0 | |||||||
Options outstanding (in shares) | 10,556,000 | 15,928,000 | ||||||
Options exercisable (in shares) | 10,079,000 | |||||||
Options exercisable (in USD per share) | $ / shares | $ 3.77 | |||||||
Options exercised (in shares) | 4,291,000 | |||||||
Equity Incentive Plans | Option | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized compensation expense, period for recognition | 9 months 18 days | 1 year 6 months | ||||||
Equity Incentive Plans | RSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized compensation expense, period for recognition | 2 years 8 months 12 days | 3 years 4 months 24 days | ||||||
Unrecognized stock-based compensation, excluding options | $ | $ 145,600,000 | $ 141,100,000 | ||||||
Awards granted, fair value (in USD per share) | $ / shares | $ 8.75 | |||||||
Equity Incentive Plans | RSUs Subject to Performance Metrics | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized stock-based compensation, excluding options | $ | 1,900,000 | |||||||
Equity Incentive Plans | Restricted Stock Units (RSUs), Subject to Service-Based and Performance-Based Vesting | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | $ | $ 0 | 0 | ||||||
Jask Plans | Jask Labs Inc. | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options granted, weighted average grant date fair value (in USD per share) | $ / shares | $ 6.39 | |||||||
Unrecognized compensation expense related to options | $ | $ 100,000 | $ 100,000 | ||||||
Options granted (in shares) | 265,075 | |||||||
Options granted (in USD per share) | $ / shares | $ 9.86 | |||||||
Options outstanding (in shares) | 33,497 | 64,622 | ||||||
Options exercisable (in shares) | 32,063 | 52,193 | ||||||
Options exercisable (in USD per share) | $ / shares | $ 9.08 | $ 9.73 | ||||||
Options exercised (in shares) | 8,104 | |||||||
Sensu Plans | Sensu, Inc. | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options granted, weighted average grant date fair value (in USD per share) | $ / shares | $ 17.19 | |||||||
Unrecognized compensation expense related to options | $ | $ 100,000 | $ 300,000 | ||||||
Options granted (in shares) | 33,267 | |||||||
Options granted (in USD per share) | $ / shares | $ 4.88 | |||||||
Options outstanding (in shares) | 11,724 | 29,771 | ||||||
Options exercisable (in shares) | 8,589 | 11,166 | ||||||
Options exercisable (in USD per share) | $ / shares | $ 4.77 | $ 4.79 | ||||||
Options exercised (in shares) | 17,283 |
Stockholders' Equity (Deficit_5
Stockholders' Equity (Deficit) and Equity Incentive Plans - Summary of Assumptions (Details) | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Option | Equity Incentive Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate minimum (percent) | 0.40% | ||
Risk-free interest rate maximum (percent) | 0.90% | ||
Expected volatility rate minimum (percent) | 52.50% | ||
Expected volatility rate maximum (percent) | 55.20% | ||
Expected dividend yield (percent) | 0% | ||
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate minimum (percent) | 2.31% | 0.05% | 0.11% |
Risk-free interest rate maximum (percent) | 4.64% | 0.69% | 0.14% |
Expected volatility rate minimum (percent) | 58.80% | 46% | 55.40% |
Expected volatility rate maximum (percent) | 75.50% | 59.40% | 65.50% |
Expected dividend yield (percent) | 0% | 0% | 0% |
Minimum | Option | Equity Incentive Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 5 years 8 months 12 days | ||
Minimum | ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 months | 6 months | 8 months 12 days |
Maximum | Option | Equity Incentive Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 years 1 month 6 days | ||
Maximum | ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 2 years | 2 years | 2 years 2 months 12 days |
Stockholders' Equity (Deficit_6
Stockholders' Equity (Deficit) and Equity Incentive Plans - Option Activity (Details) - Equity Incentive Plans - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
Number of Shares | ||
Beginning balance (in shares) | 15,928,000 | |
Options granted (in shares) | 0 | 0 |
Options exercised (in shares) | (4,291,000) | |
Options cancelled (in shares) | (1,081,000) | |
Ending balance (in shares) | 10,556,000 | 15,928,000 |
Options exercisable (in shares) | 10,079,000 | |
Weighted Average Exercise Price | ||
Beginning balance (in USD per share) | $ 4.20 | |
Options granted (in USD per share) | 0 | |
Options exercised (in USD per share) | 3.36 | |
Options cancelled (in USD per share) | 9.24 | |
Ending balance (in USD per share) | 4.03 | $ 4.20 |
Options exercisable (in USD per share) | $ 3.77 | |
Options outstanding, weighted average remaining contractual term | 4 years 8 months 12 days | 5 years 10 months 24 days |
Options exercisable, weighted average remaining contractual term | 4 years 7 months 6 days | |
Options outstanding, aggregate intrinsic value | $ 82,744 | $ 123,382 |
Options exercisable, aggregate intrinsic value | $ 81,210 |
Stockholders' Equity (Deficit_7
Stockholders' Equity (Deficit) and Equity Incentive Plans - RSU Activity (Details) - Equity Incentive Plans | 12 Months Ended |
Jan. 31, 2023 $ / shares shares | |
RSUs | |
Number of Shares | |
Beginning balance (in shares) | 9,502,000 |
Granted (in shares) | 12,962,000 |
Released (in shares) | (3,551,000) |
Forfeited (in shares) | (3,214,000) |
Ending balance (in shares) | 15,699,000 |
Expected to vest, number of shares (in shares) | 15,699,000 |
Weighted Average Grant Date Fair Value per Share | |
Period start (in USD per share) | $ / shares | $ 17.20 |
Granted (in USD per share) | $ / shares | 8.75 |
Released (in USD per share) | $ / shares | 15.26 |
Forfeited (in USD per share) | $ / shares | 14.79 |
Period end (in USD per share) | $ / shares | 11.16 |
Expected to vest, weighted average grant date fair value per share (in USD per share) | $ / shares | $ 11.16 |
Restricted Stock Units (RSUs), Subject to Service-Based and Performance-Based Vesting | |
Number of Shares | |
Granted (in shares) | 1,023,797 |
Stockholders' Equity (Deficit_8
Stockholders' Equity (Deficit) and Equity Incentive Plans - Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | $ 63,493 | $ 54,146 | $ 40,951 |
Stock-based compensation capitalized as internal-use software costs | 504 | 65 | 321 |
Cost of revenue | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 1,440 | 816 | 510 |
Research and development | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 28,329 | 23,781 | 13,728 |
Sales and marketing | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 17,902 | 15,941 | 11,532 |
General and administrative | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | $ 15,822 | $ 13,608 | $ 15,181 |
401(k) Plan (Details)
401(k) Plan (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
Retirement Benefits [Abstract] | ||
Contributions to 401k | $ 0 | $ 0 |
Income Taxes - Loss Before Inco
Income Taxes - Loss Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (128,495) | $ (130,257) | $ (82,850) |
International | 6,489 | 8,818 | 4,069 |
Loss before provision for income taxes | $ (122,006) | $ (121,439) | $ (78,781) |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Current: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 45 | (4) | 201 |
Foreign | 2,825 | 1,573 | 1,081 |
Total current tax expense (benefit) | 2,870 | 1,569 | 1,282 |
Deferred: | |||
Federal | 0 | (540) | 0 |
State | 0 | (116) | 0 |
Foreign | (61) | 1,013 | 234 |
Total deferred tax expense (benefit) | (61) | 357 | 234 |
Total tax expense (benefit) | $ 2,809 | $ 1,926 | $ 1,516 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Income Tax Rate (Details) | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Federal tax statutory rate | 21% | 21% | 21% |
State tax, net of federal tax effect | 4.80% | 4.30% | 2.10% |
Change in valuation allowance | (31.20%) | (32.10%) | (22.90%) |
Nondeductible expenses | (0.50%) | 3% | (5.00%) |
Effect of foreign operations | (1.20%) | (0.60%) | (0.60%) |
Tax credits | 5.10% | 2.70% | 4.50% |
Other | (0.30%) | 0.10% | (1.00%) |
Total | (2.30%) | (1.60%) | (1.90%) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 |
Deferred tax assets: | |||
Accruals and reserves | $ 4,655 | $ 3,158 | |
Deferred revenue | 1,495 | 1,073 | |
Net operating loss carryforwards | 132,314 | 126,332 | |
Tax credit carryforwards | 23,843 | 17,754 | |
Stock-based compensation | 5,697 | 6,010 | |
Capitalized research expenditures | 21,128 | 0 | |
Lease liabilities | 345 | 1,575 | |
Gross deferred tax assets | 189,477 | 155,902 | |
Less: valuation allowance | (189,403) | (150,963) | $ (110,200) |
Total deferred tax assets | 74 | 4,939 | |
Deferred tax liabilities: | |||
Property and equipment | (1,257) | (5,769) | |
Deferred sales commissions | (2,946) | (2,436) | |
Right-of-use assets | (319) | (1,449) | |
Total deferred tax liabilities | (4,522) | (9,654) | |
Net deferred tax liabilities | $ (4,448) | $ (4,715) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Tax Credit Carryforward [Line Items] | ||||
Valuation allowance | $ 189,403 | $ 150,963 | $ 110,200 | |
Increase in valuation allowance | 38,400 | 40,700 | 18,000 | |
Unrecognized tax benefits | 7,948 | $ 5,610 | $ 4,213 | $ 3,252 |
Unrecognized tax benefits tax rate | 1,100 | |||
Federal | ||||
Tax Credit Carryforward [Line Items] | ||||
Operating loss carryforwards | 522,100 | |||
Federal | Research tax credit carryforward | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforward | 19,600 | |||
State | ||||
Tax Credit Carryforward [Line Items] | ||||
Operating loss carryforwards | 362,200 | |||
State | Research tax credit carryforward | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforward | $ 13,100 |
Income Taxes - Change in Gross
Income Taxes - Change in Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning of year | $ 5,610 | $ 4,213 | $ 3,252 |
Increase related to prior year tax positions | 736 | 0 | 66 |
Decreases related to prior year tax positions | 0 | 0 | 0 |
Increases related to current year tax positions | 1,602 | 1,397 | 895 |
Unrecognized tax benefits, end of year | $ 7,948 | $ 5,610 | $ 4,213 |
Net Loss Per Share - Calculatio
Net Loss Per Share - Calculation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Net loss | $ (124,815) | $ (123,365) | $ (80,297) |
Weighted-average number of shares outstanding, diluted (in shares) | 117,836 | 108,695 | 48,805 |
Weighted-average number of shares outstanding, basic (in shares) | 117,836 | 108,695 | 48,805 |
Net loss per share, diluted (in USD per share) | $ (1.06) | $ (1.13) | $ (1.65) |
Net loss per share, basic (in USD per share) | $ (1.06) | $ (1.13) | $ (1.65) |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Antidilutive Securities (Details) - shares shares in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities (in shares) | 26,847 | 26,085 | 28,970 |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities (in shares) | 10,556 | 15,928 | 24,768 |
RSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities (in shares) | 16,097 | 9,502 | 3,757 |
ESPP | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities (in shares) | 102 | 130 | 133 |
Warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities (in shares) | 11 | 11 | 32 |
Shares subject to repurchase | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities (in shares) | 36 | 226 | 140 |
Assumed options for acquisitions | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities (in shares) | 45 | 94 | 140 |
Issuable shares for acquisitions | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive securities (in shares) | 0 | 194 | 0 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Millions | Feb. 09, 2023 USD ($) $ / shares |
Subsequent Event | |
Subsequent Event [Line Items] | |
Terminations fee | $ | $ 52 |
Serrano Merger Sub, Inc. | Sumo Logic, Inc. | Forecast | |
Subsequent Event [Line Items] | |
Business acquisition, share price (in shares) | $ / shares | $ 12.05 |