0001643269-20-000008 | 10-Q | XBRL Viewer

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Cover - shares	9 Months Ended
Cover - shares	Oct. 31, 2020	Nov. 30, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Oct. 31, 2020
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	305 Main Street
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	810-8700
Title of 12(b) Security	Common stock, par value $0.0001 per share
Trading Symbol	SUMO
Security Exchange Name	NASDAQ
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		102,318,468
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001643269
Current Fiscal Year End Date	--01-31

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 31, 2020	Jan. 31, 2020
Current assets:
Cash and cash equivalents	$ 407,469	$ 101,513
Accounts receivable, net	41,685	27,011
Prepaid expenses	8,581	6,305
Deferred sales commissions, current	11,317	8,884
Other current assets	2,153	1,604
Total current assets	471,205	145,317
Property and equipment, net	3,952	2,993
Goodwill	50,672	50,672
Acquired intangible assets, net	12,298	17,415
Deferred sales commissions, noncurrent	24,605	17,479
Other noncurrent assets	840	3,885
Total assets	563,572	237,761
Current liabilities:
Accounts payable	8,678	6,151
Accrued expenses and other current liabilities	21,334	20,371
Deferred revenue, current	88,612	85,715
Total current liabilities	118,624	112,237
Deferred revenue, noncurrent	1,768	2,970
Redeemable convertible preferred stock warrant liability	0	270
Other noncurrent liabilities	4,883	2,691
Total liabilities	125,275	118,168
Commitments and contingencies (Note 7)
Redeemable convertible preferred stock	0	340,167
Stockholders’ equity (deficit):
Common stock	10	2
Additional paid-in-capital	815,735	97,131
Accumulated other comprehensive loss	(246)	(213)
Accumulated deficit	(377,202)	(317,494)
Total stockholders’ equity (deficit)	438,297	(220,574)
Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit)	$ 563,572	$ 237,761

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2020	Oct. 31, 2019	Oct. 31, 2020	Oct. 31, 2019
Income Statement [Abstract]
Revenue	$ 51,868	$ 40,513	$ 148,485	$ 110,745
Cost of revenue	13,601	11,212	42,140	29,151
Gross profit	38,267	29,301	106,345	81,594
Operating expenses:
Research and development	18,753	14,029	51,756	35,394
Sales and marketing	26,904	30,382	80,534	76,868
General and administrative	15,507	14,193	32,096	28,141
Total operating expenses	61,164	58,604	164,386	140,403
Loss from operations	(22,897)	(29,303)	(58,041)	(58,809)
Interest and other (expense) income, net	(322)	726	(249)	1,611
Interest expense	(290)	(40)	(654)	(66)
Loss before provision for income taxes	(23,509)	(28,617)	(58,944)	(57,264)
Provision for income taxes	417	2	764	357
Provision for income taxes	$ (23,926)	$ (28,619)	$ (59,708)	$ (57,621)
Net loss per share, basic and diluted (in USD per share)	$ (0.43)	$ (1.95)	$ (1.92)	$ (4.13)
Weighted-average number of shares outstanding, basic and diluted (in shares)	55,816	14,650	31,044	13,953

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2020	Oct. 31, 2019	Oct. 31, 2020	Oct. 31, 2019
Statement of Comprehensive Income [Abstract]
Net loss	$ (23,926)	$ (28,619)	$ (59,708)	$ (57,621)
Other comprehensive income (loss):
Foreign currency translation adjustments	(51)	97	(33)	(45)
Total comprehensive loss	$ (23,977)	$ (28,522)	$ (59,741)	$ (57,666)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Condensed 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 at Jan. 31, 2019	$ (202,464)	$ 1	$ 22,989	$ (97)	$ (225,357)
Beginning balance (in shares) at Jan. 31, 2019		13,065,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options	2,455	$ 0	2,455
Issuance of common stock upon exercise of stock options (in shares)		1,574,000
Issuance of common stock upon early exercise of stock options	0	$ 0
Issuance of common stock upon early exercise of stock options (in shares)		349,000
Vesting of early exercised stock options	132		132
Common stock issued in connection with acquisitions	43,873	$ 1	43,872
Common stock issued in connection with acquisitions (in shares)		2,922,000
Stock-based compensation	16,965		16,965
Foreign currency translation adjustments	(45)			(45)
Net loss	(57,621)				(57,621)
Ending balance at Oct. 31, 2019	(196,705)	$ 2	86,413	(142)	(282,978)
Ending balance (in shares) at Oct. 31, 2019		17,910,000
Beginning balance at Jan. 31, 2019	$ 234,095
Beginning balance (in shares) at Jan. 31, 2019	53,776,000
Increase (Decrease) in Temporary Equity [Roll Forward]
Issuance of Series G redeemable convertible preferred stock, net issuance of costs of $3,927	$ 106,072
Issuance of Series G redeemable convertible preferred stock, net of issuance costs of $3,927 (in shares)	9,986,000
Ending balance (in shares) at Oct. 31, 2019	63,762,000
Ending balance at Oct. 31, 2019	$ 340,167
Beginning balance at Jul. 31, 2019	(223,200)	$ 1	31,397	(239)	(254,359)
Beginning balance (in shares) at Jul. 31, 2019		14,290,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options	1,186	$ 0	1,186
Issuance of common stock upon exercise of stock options (in shares)		698,000
Vesting of early exercised stock options	49		49
Common stock issued in connection with acquisitions	43,873	$ 1	43,872
Common stock issued in connection with acquisitions (in shares)		2,922,000
Stock-based compensation	9,909		9,909
Foreign currency translation adjustments	97			97
Net loss	(28,619)				(28,619)
Ending balance at Oct. 31, 2019	(196,705)	$ 2	86,413	(142)	(282,978)
Ending balance (in shares) at Oct. 31, 2019		17,910,000
Beginning balance at Jul. 31, 2019	$ 340,167
Beginning balance (in shares) at Jul. 31, 2019	63,762,000
Ending balance (in shares) at Oct. 31, 2019	63,762,000
Ending balance at Oct. 31, 2019	$ 340,167
Beginning balance at Jan. 31, 2020	(220,574)	$ 2	97,131	(213)	(317,494)
Beginning balance (in shares) at Jan. 31, 2020		18,984,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon initial public offering, net of underwriting discounts and issuance costs	342,685	$ 2	342,683
Issuance of common stock upon initial public offering, net of underwriting discounts and issuance costs (in shares)		17,020,000
Conversion of convertible redeemable preferred stock to common stock upon initial public offering	340,167	$ 6	340,161
Conversion of convertible redeemable preferred stock to common stock upon initial public stock offering (in shares)		63,762,000
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	6,113	$ 0	6,113
Issuance of common stock upon exercise of stock options (in shares)		2,222,000
Vesting of early exercised stock options	148		148
Common stock issued in connection with acquisitions	0	$ 0
Common stock issued in connection with acquisitions (in shares)		256,000
Stock-based compensation	28,987		28,987
Foreign currency translation adjustments	(33)			(33)
Net loss	(59,708)				(59,708)
Ending balance at Oct. 31, 2020	438,297	$ 10	815,735	(246)	(377,202)
Ending balance (in shares) at Oct. 31, 2020		102,244,000
Beginning balance at Jan. 31, 2020	$ 340,167
Beginning balance (in shares) at Jan. 31, 2020	63,762,000
Increase (Decrease) in Temporary Equity [Roll Forward]
Conversion of convertible redeemable preferred stock to common stock upon initial public offering	$ (340,167)
Conversion of convertible redeemable preferred stock to common stock upon initial public offering (in shares)	(63,762,000)
Ending balance (in shares) at Oct. 31, 2020	0
Ending balance at Oct. 31, 2020	$ 0
Beginning balance at Jul. 31, 2020	(244,208)	$ 2	109,261	(195)	(353,276)
Beginning balance (in shares) at Jul. 31, 2020		20,128,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon initial public offering, net of underwriting discounts and issuance costs	342,685	$ 2	342,683
Issuance of common stock upon initial public offering, net of underwriting discounts and issuance costs (in shares)		17,020,000
Conversion of convertible redeemable preferred stock to common stock upon initial public offering	340,167	$ 6	340,161
Conversion of convertible redeemable preferred stock to common stock upon initial public stock offering (in shares)		63,762,000
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	3,992	$ 0	3,992
Issuance of common stock upon exercise of stock options (in shares)		1,301,000
Vesting of early exercised stock options	49		49
Common stock issued in connection with acquisitions	0	$ 0
Common stock issued in connection with acquisitions (in shares)		33,000
Stock-based compensation	19,077		19,077
Foreign currency translation adjustments	(51)			(51)
Net loss	(23,926)				(23,926)
Ending balance at Oct. 31, 2020	438,297	$ 10	$ 815,735	$ (246)	$ (377,202)
Ending balance (in shares) at Oct. 31, 2020		102,244,000
Beginning balance at Jul. 31, 2020	$ 340,167
Beginning balance (in shares) at Jul. 31, 2020	63,762,000
Increase (Decrease) in Temporary Equity [Roll Forward]
Conversion of convertible redeemable preferred stock to common stock upon initial public offering	$ (340,167)
Conversion of convertible redeemable preferred stock to common stock upon initial public offering (in shares)	(63,762,000)
Ending balance (in shares) at Oct. 31, 2020	0
Ending balance at Oct. 31, 2020	$ 0

Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Parenthetical) $ in Thousands	9 Months Ended
	Oct. 31, 2019 USD ($)
Statement of Stockholders' Equity [Abstract]
Payments of issuance costs	$ 3,927

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Cash flows from operating activities
Net loss	$ (59,708)	$ (57,621)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	6,152	1,927
Amortization of deferred sales commissions	8,148	6,419
Stock-based compensation, net of amounts capitalized	28,666	16,561
Other	186	(11)
Changes in operating assets and liabilities, net of impact of acquisitions:
Accounts receivable	(14,717)	(5,026)
Prepaid expenses	(2,276)	513
Other assets	(619)	(57)
Deferred sales commissions	(17,718)	(10,621)
Accounts payable	(149)	56
Accrued expenses and other current liabilities	1,781	5,182
Deferred revenue	1,695	12,428
Other noncurrent liabilities	2,354	485
Net cash used in operating activities	(46,205)	(29,765)
Cash flows from investing activities
Purchases of property and equipment	(358)	(1,949)
Capitalized internal-use software costs	(1,205)	(4,292)
Cash paid for acquisitions, net of cash and restricted cash acquired	0	(8,260)
Net cash used in investing activities	(1,563)	(14,501)
Cash flows from financing activities
Proceeds from initial public offering, net of underwriting discounts	349,166	0
Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs	0	106,072
Proceeds from borrowings	24,250	0
Repayment of borrowings	(24,250)	0
Payments of deferred offering costs	(1,321)	(84)
Proceeds from exercise of common stock options	6,113	3,614
Cash paid for holdback consideration in connection with acquisition	(100)	0
Net cash provided by financing activities	353,858	109,602
Effect of exchange rate changes on cash and cash equivalents	(134)	(7)
Change in cash and cash equivalents and restricted cash	305,956	65,329
Beginning of period	101,813	65,671
End of period	407,769	131,000
Supplemental disclosures of cash flow information
Cash paid for income taxes	846	390
Cash paid for interest	706	10
Supplemental non-cash investing and financing information
Conversion of redeemable convertible preferred stock to common stock	340,161	0
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital	512	0
Vesting of early exercised options	148	132
Unpaid cash consideration for acquisitions	0	2,816
Stock-based compensation capitalized as internal-use software costs	321	404
Issuance of redeemable convertible preferred stock warrants	0	71
Deferred offering costs accrued but not yet paid	3,140	250
Property and equipment accrued but not yet paid	130	5
Reconciliation of cash, cash equivalents, and restricted cash to consolidated balance sheets
Total cash, cash equivalents, and restricted cash	407,769	131,000
Common Stock
Supplemental non-cash investing and financing information
Equity issued	$ 0	$ 43,873

Description of Business and Basis of Presentation	9 Months Ended
Description of Business and Basis of Presentation	Oct. 31, 2020
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 platform that enables organizations of all sizes to address the challenges and opportunities presented by digital transformation, modern applications, and cloud computing. The platform enables organizations to automate the collection, ingestion, and analysis of application, infrastructure, security, and IoT data to derive actionable insights. Basis of Presentation and Principles of Consolidation The Company’s condensed consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission, (“SEC”), regarding interim financial reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP have been condensed or omitted, and accordingly the balance sheet as of January 31, 2020, and related disclosures, have been derived from the audited consolidated financial statements at that date but do not include all of the information required by GAAP for complete consolidated financial statements. These unaudited condensed consolidated financial statements have been prepared on the same basis as the Company’s annual consolidated financial statements and, in the opinion of management, reflect all adjustments (consisting of only normal recurring adjustments) that are necessary for the fair statement of the Company’s condensed consolidated financial information. The results of operations for the three and nine months ended October 31, 2020 are not necessarily indicative of the results to be expected for the year ending January 31, 2021 or for any other interim period or for any other future year. The accompanying interim unaudited condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto for the year ended January 31, 2020 included in the Company’s prospectus dated September 17, 2020 filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933, as amended (“Prospectus”). The Company’s condensed 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 condensed 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 noncurrent assets on the condensed 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. As of January 31, 2020, deferred offering costs totaled $3.3 million.

Summary of Significant Accounting Policies	9 Months Ended
Summary of Significant Accounting Policies	Oct. 31, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Significant Accounting Policies Other than those described below, there have been no changes to the Company’s significant accounting policies described in the Prospectus that have had a material impact on its condensed consolidated financial statements and related notes. Use of Estimates and Judgments The preparation of the Company’s condensed 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, assumptions used for estimating the fair value of common stock to calculate stock-based compensation (prior to the closing of the IPO), capitalization of internal-use software costs, valuation of goodwill and intangible assets, certain accrued liabilities, and valuation allowances associated with income taxes. COVID-19 While the duration and extent of the COVID-19 pandemic depends on future developments that cannot be accurately predicted at this time, such as the extent and effectiveness of containment actions, it has already had an adverse effect on the global economy and the lasting effects of the pandemic continue to be unknown. The Company may experience 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. The extent to which COVID-19 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 condensed 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. 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 nine months ended October 31, 2020. 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 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. The Company recognizes stock-based compensation expense for stock options on a straight-line basis. Prior to September 21, 2020, 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 September 21, 2020 will not be subject to a liquidity event condition. 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. Related party transactions were not material as of October 31, 2020 or January 31, 2020, or for three and nine months ended October 31, 2020 or 2019. Recently Adopted Accounting Pronouncements The Company assesses the adoption impacts of recently issued accounting pronouncements by the Financial Accounting Standards Board (“FASB”) on its condensed consolidated financial statements. The sections below describe impacts from newly adopted pronouncements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350)—Simplifying the Test for Goodwill Impairment, which simplifies the required methodology to calculate an impairment charge for goodwill. The Company adopted this guidance as of February 1, 2020, and the adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718) Improvements to Nonemployee Share-Based Payment Accounting. The amendments in the updated guidance expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The Company adopted this guidance as of February 1, 2020, and the adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), which modifies the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures for certain investments. The Company adopted this guidance as of February 1, 2020, and the adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40), which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company adopted this guidance, on a prospective basis, as of February 1, 2020, and the adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740). The amendments in the updated guidance simplify the accounting for income taxes by removing certain exceptions and improving consistent application of other areas of the topic by clarifying the guidance. The Company adopted this guidance, on a prospective basis, as of February 1, 2020, and the adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. Recently Issued Accounting Pronouncements Under the JOBS Act, the Company meets the definition of an emerging growth company and can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the Company is no longer an emerging growth company or until the Company affirmatively and irrevocably opts out of the extended transition period. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This guidance is intended to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about lease arrangements. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases. The ASU seeks to clarify how to apply certain aspects of the new leasing standard. In October 2018, the FASB also issued ASU No. 2018-11, Leases (Topic 842). The ASU provides (1) an optional transition method that entities can use when adopting the standard and (2) a practical expedient that permits lessors to not separate non-lease components from the associated lease component if certain conditions are met. In March 2019, the FASB also issued ASU No. 2019-01, which impacts transition disclosures related to the new guidance. In June 2020, the FASB issued ASU No. 2020-05, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities, which amended the effective date of the new guidance. The deferral applies only if those entities have not yet issued their financial statements as of June 3, 2020. The new guidance will be effective for the Company for the fiscal year ending January 31, 2023 and interim periods within the fiscal year ending January 31, 2024. The Company is currently reviewing this guidance to assess the potential impact on its condensed consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and has since issued various amendments including ASU No. 2018-19, ASU No. 2019-04, and ASU No. 2019-05. The guidance establishes a new "expected loss model”, that requires entities to estimate current expected losses on financial instruments by using all practical and relevant information. Additionally, any expected credit losses are to be reflected as allowances rather than reductions in the amortized cost of available-for-sale debt securities. The new guidance will be effective for the Company for the fiscal year, and interim periods within the fiscal year, ending January 31, 2024, though early adoption is permitted. The Company is currently reviewing this guidance to assess the potential impact on its condensed consolidated financial statements.

Fair Value Measurements

9 Months Ended

Oct. 31, 2020

Fair Value Disclosures [Abstract]

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 and liabilities measured at fair value on a recurring basis, based on the three-tier fair value hierarchy (in thousands):


	As of October 31, 2020
	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	400,212	$	—	$	—	$	400,212


	As of January 31, 2020
	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	98,469	$	—	$	—	$	98,469
Liabilities:
Redeemable convertible preferred stock warrant liability	$	—	$	—	$	270	$	270

Level 3 financial liabilities consisted of the redeemable convertible preferred stock warrant liability. In connection with an agreement with Silicon Valley Bank, discussed in Note 6, 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 (expense) income, net in the Company’s condensed 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 condensed consolidated balance sheet.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Property and Equipment, Net

9 Months Ended

Oct. 31, 2020

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

Property and equipment, net, consisted of the following (in thousands):


	October 31, 2020		January 31, 2020
Computer and hardware equipment	$	2,147	$	1,954
Furniture and fixtures	1,213		1,129
Leasehold improvements	2,292		2,120
Capitalized internal-use software	3,386		9,823
Gross property and equipment	9,038		15,026
Accumulated depreciation and amortization	(5,086)		(12,033)
Property and equipment, net	$	3,952	$	2,993

Depreciation and amortization expense of property and equipment was $0.4 million and $0.3 million for the three months ended October 31, 2020 and 2019, respectively, and $1.0 million and $1.3 million for the nine months ended October 31, 2020 and 2019, respectively.

The following table presents the Company’s long-lived assets by geographic region for the periods indicated (in thousands):


	October 31, 2020		January 31, 2020
United States	$	3,138	$	1,970
International	814		1,023
Total long-lived assets	$	3,952	$	2,993

The Company capitalized $0.4 million and $1.8 million of internal-use software costs for the three months ended October 31, 2020 and 2019, respectively, and $1.5 million and $4.7 million of internal-use software costs during the nine months ended October 31, 2020 and 2019, respectively. Amortization of internal-use software costs was $0.2 million and $0.2 million during the three months ended October 31, 2020 and 2019, respectively, and $0.5 million and $0.8 million during the nine months ended October 31, 2020 and 2019, respectively. There were no impairments of capitalized internal-use software costs during the nine months ended October 31, 2020 or 2019.

Fully amortized capitalized internal-use software was written off in the amount of $8.0 million during the nine months ended October 31, 2020.

Acquisitions, Intangible Assets, and Goodwill

9 Months Ended

Oct. 31, 2020

Business Combinations [Abstract]

Acquisitions, Intangible Assets, and Goodwill

Jask Labs Inc.

On October 20, 2019, the Company executed a merger agreement to acquire the assets and liabilities of Jask Labs. The acquisition closed on October 25, 2019. Jask Labs is a software company with a platform that offers a cloud-native autonomous security operations center solution. The Company acquired Jask Labs primarily for its team and their platform, which includes their security analytics solution to deliver an integrated, cloud-native intelligence solution. The aggregate purchase consideration was $55.1 million, of which $11.2 million was paid in cash, $43.3 million was comprised of 3,573,659 shares of common stock, and $0.6 million was comprised of assumed options to purchase 265,075 shares of common stock. The value of consideration assigned to the common stock paid was based on the fair value of the Company’s common stock on the date of acquisition. Of the consideration transferred, $0.9 million in cash and 543,095 shares of common stock for $6.6 million was placed in an indemnity escrow fund to be held for 15 months after the acquisition date for general representations and warranties.

At closing, certain Jask Labs stockholders had not completed administrative forms that were required for the Company’s common stock to be legally issued. Thus, the shares were to be issued once the administrative forms were completed. The Company has included the total fair value of the consideration for shares legally issued and legally issuable within additional-paid-in capital and common stock. As of October 31, 2020, all administrative forms were completed and all shares were legally issued and outstanding.

The acquisition was accounted for as a business combination, and the total purchase price was allocated to the net tangible and intangible assets and liabilities acquired based on their respective fair values on the acquisition date and the excess was recorded as goodwill.

Certain stock options held by Jask Labs employees were assumed by the Company with a total fair value of $1.7 million, of which $0.6 million was attributed to pre-combination services and was included in consideration transferred and $1.1 million was allocated to post-combination services and will be recognized as stock-based compensation over the remaining service period. See Note 9 for more details on the Jask Labs options assumed.

The assets acquired and liabilities assumed in connection with the acquisition were recorded at their fair value on the date of acquisition as follows (in thousands):


	Amount
Cash	$	782
Restricted cash	300
Accounts receivable	503
Prepaid expenses and other assets	659
Fixed assets	367
Intangible assets	17,500
Goodwill	41,368
Accounts payable	(1,760)
Deferred revenue, current	(2,358)
Accrued and other current liabilities	(1,609)
Deferred revenue, noncurrent	(354)
Other noncurrent liabilities	(291)
Total acquisition consideration	$	55,107

Subsequent to the acquisition, the Company recorded a $0.3 million tax benefit related to on the release of the valuation allowance on its net deferred tax assets.

Intangible assets acquired are comprised of developed technology with an estimated useful life of 3 years. The fair value assigned to the developed technology was determined using the reproduction cost approach, which estimates the cost to reproduce the asset. 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 Jask Labs. In addition, goodwill represents the future benefits as a result of the acquisition that will enhance the Company’s product available to both new and existing customers and increase the Company’s competitive position. The goodwill is not deductible for tax purposes.

In connection with the acquisition, 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. The Company recorded stock-based compensation expense related to the vesting of the restricted common stock of $0.2 million during the three months ended October 31, 2020 and $0.6 million during the nine months ended October 31, 2020. Stock-based compensation expense related to the vesting of the restricted common stock was immaterial for the nine months ended October 31, 2019. As of October 31, 2020 and January 31, 2020, the remaining unrecognized stock-based compensation expense of $0.8 million and $1.4 million, respectively, will be recognized over the remaining vesting period.

The Company incurred acquisition-related expenses of $2.6 million, which were recorded as general and administrative expenses in the condensed consolidated statement of operations during the three and nine months ended October 31, 2019. The Company paid $0.8 million in acquisition-related expenses incurred by Jask Labs related to Jask Labs’ advisors which was included as part of the purchase consideration.

The results of operations of Jask Labs are included in the accompanying condensed consolidated statements of operations from the date of acquisition. Jask Labs’ results of operations since the date of acquisition were not material to the Company’s condensed consolidated results for the year ended January 31, 2020.

Pro Forma Financial Information

The following pro forma information gives effect to the acquisition of Jask Labs as if it had been completed on February 1, 2017 (the beginning of the comparable prior annual reporting period presented in the Prospectus), including pro forma adjustments primarily related to amortization of acquired intangible assets, reduction in revenue related to the fair value of deferred revenue, stock-based compensation, tax benefit from release of the valuation allowance, and the inclusion of acquisition-related expenses reflected in the revenue and net loss figures below at the earliest period presented. The pro forma results have been prepared based on estimates and assumptions, which the Company believes are reasonable; however, they are not necessarily indicative of the consolidated results of operations had the acquisition occurred on February 1, 2017, or of future results of operations (in thousands):


	Three Months Ended October 31, 2019		Nine Months Ended October 31, 2019
Revenue	$	41,503	$	113,124
Net loss	$	(34,258)	$	(81,025)

Pro forma revenue and net loss reflect nonrecurring adjustments for acquisition-related expenses of $3.4 million, a tax benefit of $0.3 million for the release of the valuation allowance, and accelerated stock-based compensation of $0.1 million that resulted from the acquisition.

Other Acquisitions

During the nine months ended October 31, 2019, the Company completed an asset acquisition for total consideration of $1.0 million which was attributed to intangible assets. The intangible assets acquired in the asset acquisition were comprised of developed technology with an estimated weighted average useful life of 1.5 years. This acquisition generally enhances the breadth and depth of certain of the Company’s product offerings.

Acquired Intangible Assets

Intangible assets as of October 31, 2020 and January 31, 2020 consisted of developed technology with acquisition-date fair values of $20.1 million and $20.1 million, respectively.

As of October 31, 2020 and January 31, 2020, the accumulated amortization of the developed technology was $7.8 million and $2.7 million, respectively. As of October 31, 2020 and January 31, 2020, the weighted-average remaining useful life of the developed technology was 2.0 years and 2.7 years, respectively. The Company recorded amortization expense of $1.7 million and $0.3 million during the three months ended October 31, 2020 and 2019, respectively, and $5.1 million and $0.6 million during the nine months ended October 31, 2020 and 2019, respectively. There was no impairment of intangible assets recorded for the nine months ended October 31, 2020 or 2019.

As of October 31, 2020, future amortization expense related to acquired developed technology was as follows (in thousands):


	Amortization Expense
Remainder of fiscal 2021	$	1,648
2022	6,148
2023	4,502
Total.	$	12,298

As of January 31, 2020, future amortization expense related to acquired developed technology was as follows (in thousands):


	Amortization Expense
2021	$	6,765
2022	6,148
2023	4,502
Total	$	17,415

Goodwill

There was no impairment of goodwill recorded for the nine months ended October 31, 2020 or 2019.

Debt	9 Months Ended
Debt	Oct. 31, 2020
Debt Disclosure [Abstract]
Debt	Debt On January 31, 2016, the Company entered into a Loan and Security Agreement (the “Agreement”) with Silicon Valley Bank. The Agreement provides for a revolving line of credit facility, which was amended in July 2019 to extend it to July 31, 2021. Under the Agreement, the Company can borrow up to $25 million. Interest on any drawdown under the revolving line of credit accrues either at the prime rate plus a spread rate of ranging from 0.25% to 0.75% as determined by the Company’s adjusted quick ratio. The Agreement is secured by substantially all of the Company’s assets. The Agreement includes restrictive covenants, in each case subject to certain exceptions, that limit the Company’s ability to: sell or otherwise dispose of the Company’s business or property; change its business, liquidate or dissolve or undergo a change in control; enter into mergers, consolidations, and acquisitions; incur indebtedness; create liens; pay dividends or make distributions; make investments; enter into material transactions with affiliates; pay any subordinated debt or amend certain terms thereof; or become an investment company. The 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. In June 2020, the Company amended the Agreement with Silicon Valley Bank to extend its maturity to June 2022. Under the amended Agreement, the Company can borrow up to $50 million. Interest on any drawdown accrues at the greater of the prime rate plus a spread of 0.75% or 5.25%. Pursuant to the amended Agreement, the Company is required to maintain a minimum adjusted quick ratio of 1.25 to 1.00. If the Company’s adjusted quick ratio is greater than or equal to 1.75 to 1.00, interest on any drawdown will accrue at the greater of the prime rate plus a spread of 0.25% or 4.75%. The revolving line of credit must be repaid by June 26, 2022. During the three months ended October 31, 2020, the Company repaid the outstanding balance under this facility. The Company did not have any balance outstanding under this facility as of January 31, 2020. The Company was in compliance with the financial covenants associated with the amended Agreement as of October 31, 2020.

Commitment and Contingencies

9 Months Ended

Oct. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Operating Leases

The Company leases office space globally under non-cancelable operating lease agreements that expire at various dates through fiscal 2025. As of October 31, 2020, future annual minimum lease payments under non-cancelable operating leases were as follows (in thousands):


	Minimum Lease Payments
Remainder of 2021	$	1,199
2022	4,787
2023	4,649
2024	1,887
2025	404
Total	$	12,926

Rent expense was $1.0 million and $0.9 million for the three months ended October 31, 2020 and 2019, respectively, and $3.0 million and $2.3 million for the nine months ended October 31, 2020 and 2019, respectively.

Non-Cancellable Purchase Commitments

During the nine months ended October 31, 2020, there were no material changes, outside the ordinary course of business, to the Company’s contractual obligations and commitments, except as follows.

In July 2020, the Company entered into an amended hosting agreement effective August 2020. Under the amended agreement, the Company has committed to spend $220.0 million between August 2020 and January 2024 for its hosting agreement ($90.0 million between August 2020 and January 2022, $60 million between February 2022 and January 2023, and $70.0 million between February 2023 and January 2024).

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 is being handled in arbitration and will result in the Company paying $4.5 million to resolve the class-wide claims, subject to final approval by the arbitrator. As of October 31, 2020, the Company had recorded $4.5 million related to these claims within accrued expenses and other current liabilities on the condensed consolidated balance sheet.

The Company is not always able to reasonably estimate the amount or range of possible losses in excess of any amounts accrued. In management’s opinion, resolution of all current matters, including employment matters, is not expected to have a material adverse impact on the Company’s business, financial position, results of operations, or cash flows as of October 31, 2020 or January 31, 2020.

Revenue

9 Months Ended

Oct. 31, 2020

Revenue from Contract with Customer [Abstract]

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):


	Three Months Ended October 31,				Nine Months Ended October 31,
	2020		2019		2020		2019
United States	$	44,636	$	34,355	$	125,648	$	93,269
International	7,232		6,158		22,837		17,476
Total revenue	$	51,868	$	40,513	$	148,485	$	110,745

No individual foreign country contributed 10% or more of revenue for the three and nine months ended October 31, 2020 and 2019.

No customer individually accounted for 10% or more of the Company’s revenue for the three and nine months ended October 31, 2020 or 2019.

Deferred Revenue, and Remaining Performance Obligations

The Company recognized revenue of $38.1 million and $29.7 million during the three months ended October 31, 2020 and 2019, respectively, and $77.6 million and $55.9 million during the nine months ended October 31, 2020 and 2019, respectively, that was included in the deferred revenue balance at the beginning of the respective periods.

As of October 31, 2020, future estimated revenue related to performance obligations from non-cancelable contracts that were unsatisfied or partially unsatisfied were $234.4 million. Of this amount, the Company expects to recognize revenue of approximately $139.9 million over the next twelve months, with the remaining balance recognized thereafter.

Accounts Receivable and Related Allowance

Accounts receivable consist of amounts billed and currently due from customers. The Company’s accounts receivable are subject to collection risk. Gross accounts receivable is adjusted for estimated losses resulting from the inability of the Company’s customers to fulfill their payment obligations. The Company periodically reviews factors such as past collection experience, specific allowances for known troubled accounts, and other currently available evidence to determine the best estimate of probable losses inherent in the receivables. As of October 31, 2020, there was less than $0.1 million recorded as an allowance for doubtful accounts for the Company’s accounts receivables, and there was no allowance for doubtful accounts as of January 31, 2020.

As of October 31, 2020, two customers accounted for 19% and 11% of total accounts receivable, respectively. As of January 31, 2020, no individual customer accounted for 10% or more of total accounts receivable.

Deferred Sales Commissions

The Company capitalized sales commission of $10.8 million and $4.0 million during the three months ended October 31, 2020 and 2019, respectively, and $17.7 million and $10.6 million during the nine months ended October 31, 2020 and 2019, respectively. Amortized costs were $2.9 million and $2.2 million for the three months ended October 31, 2020 and 2019, respectively, and $8.1 million and $6.4 million for the nine months ended October 31, 2020 and 2019, respectively. There was no impairment loss in relation to deferred sales commissions for the nine months ended October 31, 2020 or 2019.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Stockholders' Equity (Deficit) and Equity Incentive Plans

9 Months Ended

Oct. 31, 2020

Equity [Abstract]

Stockholders' Equity (Deficit) and Equity Incentive Plans

Stockholders’ Equity (Deficit) 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 October 31, 2020, 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 1,000.0 million and 122.0 million shares of common stock at a par value of $0.0001 as of October 31, 2020 and January 31, 2020, respectively. As of October 31, 2020 and January 31, 2020, approximately 102.0 million and 19.0 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 October 31, 2020 and January 31, 2020, no dividends had been declared.

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”). In connection with the Company’s IPO in September 2020, the 2010 Plan was terminated and replaced by the 2020 Plan and all shares that remained available for issuance under the 2010 Plan at that time were reserved for issuance under 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 restricted stock units (“RSUs”) to employees, directors, consultants, and advisors pursuant to the 2010 Plan. Through October 31, 2020, the Company has granted no equity awards pursuant to the 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 both a service-based condition based on continuous service over four years and a liquidity event condition.

As of October 31, 2020, there were 13.3 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 our 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 following table is a summary of option activity during the nine months ended October 31, 2020:


	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
	(in thousands)			(years)	(in thousands)
Balance at January 31, 2020	27,841	$	3.72	7.7	$	233,918
Options granted	1,635	$	12.12
Options exercised	(2,170)	$	2.61
Options cancelled	(2,072)	$	6.08
Balance at October 31, 2020	25,234	$	4.16	7.0	$	331,066
Options exercisable at January 31, 2020	14,141	$	2.01	6.5	$	142,932
Options exercisable at October 31, 2020	15,710	$	2.61	6.1	$	230,411

Stock options granted during the three months ended October 31, 2020 and 2019 had a weighted-average grant-date fair value $11.13 and $6.68 per share, respectively. The aggregate intrinsic value of options exercised during the three months ended October 31, 2020 and 2019 was $17.0 million and $6.7 million, respectively.

Stock options granted during the nine months ended October 31, 2020 and 2019 had a weighted-average grant date fair value of $6.21 and $5.46 per share, respectively. The aggregate intrinsic value of options exercised during the nine months ended October 31, 2020 and 2019 was $25.9 million and $9.9 million, respectively.

No income tax benefits have been recognized for stock-based compensation arrangements. As of October 31, 2020 and January 31, 2020, there was $40.4 million and $52.0 million, respectively, of total unrecognized compensation expense related to unvested employee and non-employee stock options that is expected to be recognized over a weighted-average period of 2.6 and 3.1 years, respectively.

Early Exercise of Employee Options

As of October 31, 2020 and January 31, 2020, the Company had a liability $0.3 million and $0.4 million, respectively, for 91,375 and 139,750 shares of common stock that were unvested and early exercised by employees as of October 31, 2020 and January 31, 2020, respectively.

Restricted Stock Units

The following table is a summary of RSU activity for the nine months ended October 31, 2020:


	Number of Shares	Weighted Average Grant Date Fair Value per Share
	(in thousands)
RSUs outstanding at February 1, 2020	—
Granted	3,274	$	13.03
Forfeited	(83)	$	12.12
RSUs outstanding at October 31, 2020	3,191	$	13.06
RSUs expected to vest at October 31, 2020	3,191	$	13.06

As of October 31, 2020, there was $27.7 million of total unrecognized compensation expense related to unvested employee and director RSUs, of which $1.0 million is for the RSUs subject to certain other performance metrics. Total unrecognized compensation expense related to unvested RSUs is expected to be recognized over a weighted-average period of 1.8 years.

Jask Labs Plans

In connection with the acquisition of 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 (together, the “Jask Plans”), at a weighted-average exercise price of $9.86 per share and weighted-average fair value of $6.39 per share, of which 142,096 and 233,852 remained outstanding as of October 31, 2020 and January 31, 2020, respectively. As of October 31, 2020 and January 31, 2020, 95,079 and 124,184 options were vested and exercisable with a weighted-average exercise price of $9.79 and $9.21, and the total unrecognized compensation expense related to these awards was $0.3 million and $0.6 million, respectively. During the nine months ended October 31, 2020, 52,073 options were exercised.

Stock-Based Compensation Expense

The following table presents total stock-based compensation expense included in the condensed consolidated statements of operations (in thousands):


	Three Months Ended October 31,				Nine Months Ended October 31,
	2020		2019		2020		2019
Cost of revenue	$	213	$	50	$	314	$	96
Research and development(a)	5,728		2,474		9,606		3,953
Sales and marketing	4,747		1,960		7,863		3,866
General and administrative(b)	8,255		5,244		10,883		8,646
Total	$	18,943	$	9,728	$	28,666	$	16,561

________________

(a)The Company capitalized stock-based compensation related to internal-use software development costs of $0.1 million and $0.2 million, during the three months ended October 31, 2020 and 2019, respectively, and $0.3 million, and $0.4 million, during the nine months ended October 31, 2020 and 2019, respectively. The research and development stock-based compensation amounts are presented net of the capitalized costs.

(b)During the three and nine months ended October 31, 2019, the Company’s board of directors approved modifications to immediately vest 172,708 options that had been granted previously, resulting in additional stock-based compensation expense of $1.6 million, which was recorded to general and administrative expenses during the three and nine months ended October 31, 2019.

During the year ended January 31, 2020, the Company granted 280,316 options to certain executives that were subject to both service-based vesting conditions and performance-based vesting conditions; as the performance-based vesting conditions were not met, no stock-based compensation was recognized on these options for the year ended January 31, 2020. During the nine months ended October 31, 2020, these options were cancelled.

The RSUs granted under the 2010 Plan were subject to service-based and performance-based vesting conditions, which included a liquidity event condition. In certain cases the RSUs are also subject to certain other performance metrics. The liquidity event performance-based vesting condition was deemed probable of occurring upon the completion of the IPO. On that date we recorded cumulative stock-based compensation expense of $10.9 million using the accelerated attribution method. The remaining unrecognized stock-based compensation expense will be recorded over the RSUs remaining requisite service periods. Included within these amounts was $1.4 million for the RSUs subject to both the occurrence of a liquidity event and certain other performance metrics.

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 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 our 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, except for the initial offering period which began on September 17, 2020, and will end on December 15, 2022 and the second offering period will begin on June 15, 2021. 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.

The Company recognized stock-based compensation expense related to ESPP of $0.3 million during the three and nine months ended October 31, 2020. As of October 31, 2020, $0.6 million amount has been withheld on behalf of employees for a future purchase under the ESPP due to the timing of payroll deductions. As of October 31, 2020, there was $8.3 million of unrecognized stock-based compensation expense related to the ESPP that is expected to be recognized over an average vesting period of 1.4 years.

There were no purchases for the three or nine months ended October 31, 2019 related to the ESPP.

Common Stock Transfers

During the nine months ended October 31, 2020 and 2019, 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 stock-based compensation of $0.3 million and $1.4 million for the nine months ended October 31, 2020 and 2019, respectively, in general and administrative expenses in the condensed 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.

During the three and nine months ended October 31, 2019, the Company facilitated a tender offer whereby certain existing investors commenced a tender offer to purchase shares of the Company’s common stock from certain employees and former employees of the Company, for $12.11683 per share, in cash. An aggregate of 1,686,446 shares of the Company’s common stock were tendered pursuant to the tender offer. During the three and nine months ended October 31, 2019, the Company recorded a total of $4.8 million in stock-based compensation related to the tender offer, comprised of $2.6 million in general and administrative expenses, $1.5 million in research and development expenses, $0.7 million in sales and marketing expenses, and less than $0.1 million in cost of revenue in the condensed consolidated statements of operations. The amounts recorded as stock-based compensation represent the difference between the amounts paid over the estimated fair value at the date of the transaction.

Income Taxes	9 Months Ended
Income Taxes	Oct. 31, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Accounting for income taxes for interim periods generally requires the provision for income taxes to be determined by applying an estimate of the annual effective tax rate for the full fiscal year to income or loss before income taxes, adjusted for discrete items, if any, for the reporting period. The Company updates its estimate of the annual effective tax rate each quarter and records a cumulative adjustment in such period. The Company recorded income tax expense of $0.4 million and less than $0.1 million for the three months ended October 31, 2020 and 2019, respectively, and $0.8 million and $0.4 million for the nine months ended October 31, 2020 and 2019, respectively. Income tax expense consists primarily of income taxes in foreign jurisdictions in which the Company conducts business. Due to the Company’s history of losses in the United States, a full valuation allowance on substantially all of the Company’s deferred tax assets, including net operating loss carryforwards, research and development tax credits, capitalized research and development, and other book versus tax differences was maintained. The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted by the United States on March 27, 2020. The CARES Act did not have a material impact on the Company’s provision for income taxes for the nine months ended October 31, 2020.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Net Loss Per Share

9 Months Ended

Oct. 31, 2020

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):


	Three Months Ended October 31,				Nine Months Ended October 31,
	2020		2019		2020		2019
Net loss	$	(23,926)	$	(28,619)	$	(59,708)	$	(57,621)
Weighted-average shares outstanding, basic and diluted	55,816		14,650		31,044		13,953
Net loss per share, basic and diluted	$	(0.43)	$	(1.95)	$	(1.92)	$	(4.13)

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):


	Three Months Ended October 31,		Nine Months Ended October 31,
	2020	2019	2020	2019
Stock options	25,234	28,556	25,234	28,556
RSUs	3,191	—	3,191	—
ESPP	44	—	44	—
Redeemable convertible preferred stock warrants	32	32	32	32
Shares subject to repurchase	166	436	166	436
Assumed options for Jask Labs acquisition	142	265	142	265
Issuable shares for Jask Labs acquisition	543	1,325	543	1,325
Redeemable convertible preferred stock	—	63,762	—	63,762
Total anti-dilutive securities	29,352	94,376	29,352	94,376

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Oct. 31, 2020
Accounting Policies [Abstract]
Basis of Presentation	The Company’s condensed consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission, (“SEC”), regarding interim financial reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP have been condensed or omitted, and accordingly the balance sheet as of January 31, 2020, and related disclosures, have been derived from the audited consolidated financial statements at that date but do not include all of the information required by GAAP for complete consolidated financial statements. These unaudited condensed consolidated financial statements have been prepared on the same basis as the Company’s annual consolidated financial statements and, in the opinion of management, reflect all adjustments (consisting of only normal recurring adjustments) that are necessary for the fair statement of the Company’s condensed consolidated financial information. The results of operations for the three and nine months ended October 31, 2020 are not necessarily indicative of the results to be expected for the year ending January 31, 2021 or for any other interim period or for any other future year. The accompanying interim unaudited condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto for the year ended January 31, 2020 included in the Company’s prospectus dated September 17, 2020 filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933, as amended (“Prospectus”).
Principles of Consolidation	The Company’s condensed 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 condensed consolidated financial statements relate to the above described fiscal year rather than calendar year.
Use of Estimates and Judgments	The preparation of the Company’s condensed 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, assumptions used for estimating the fair value of common stock to calculate stock-based compensation (prior to the closing of the IPO), capitalization of internal-use software costs, valuation of goodwill and intangible assets, certain accrued liabilities, and valuation allowances associated with income taxes.
Covid-19	While the duration and extent of the COVID-19 pandemic depends on future developments that cannot be accurately predicted at this time, such as the extent and effectiveness of containment actions, it has already had an adverse effect on the global economy and the lasting effects of the pandemic continue to be unknown. The Company may experience 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. The extent to which COVID-19 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 condensed 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.
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 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. The Company recognizes stock-based compensation expense for stock options on a straight-line basis. Prior to September 21, 2020, 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 September 21, 2020 will not be subject to a liquidity event condition.
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	Recently Adopted Accounting Pronouncements The Company assesses the adoption impacts of recently issued accounting pronouncements by the Financial Accounting Standards Board (“FASB”) on its condensed consolidated financial statements. The sections below describe impacts from newly adopted pronouncements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350)—Simplifying the Test for Goodwill Impairment, which simplifies the required methodology to calculate an impairment charge for goodwill. The Company adopted this guidance as of February 1, 2020, and the adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718) Improvements to Nonemployee Share-Based Payment Accounting. The amendments in the updated guidance expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The Company adopted this guidance as of February 1, 2020, and the adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), which modifies the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures for certain investments. The Company adopted this guidance as of February 1, 2020, and the adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40), which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company adopted this guidance, on a prospective basis, as of February 1, 2020, and the adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740). The amendments in the updated guidance simplify the accounting for income taxes by removing certain exceptions and improving consistent application of other areas of the topic by clarifying the guidance. The Company adopted this guidance, on a prospective basis, as of February 1, 2020, and the adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. Recently Issued Accounting Pronouncements Under the JOBS Act, the Company meets the definition of an emerging growth company and can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the Company is no longer an emerging growth company or until the Company affirmatively and irrevocably opts out of the extended transition period. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This guidance is intended to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about lease arrangements. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases. The ASU seeks to clarify how to apply certain aspects of the new leasing standard. In October 2018, the FASB also issued ASU No. 2018-11, Leases (Topic 842). The ASU provides (1) an optional transition method that entities can use when adopting the standard and (2) a practical expedient that permits lessors to not separate non-lease components from the associated lease component if certain conditions are met. In March 2019, the FASB also issued ASU No. 2019-01, which impacts transition disclosures related to the new guidance. In June 2020, the FASB issued ASU No. 2020-05, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities, which amended the effective date of the new guidance. The deferral applies only if those entities have not yet issued their financial statements as of June 3, 2020. The new guidance will be effective for the Company for the fiscal year ending January 31, 2023 and interim periods within the fiscal year ending January 31, 2024. The Company is currently reviewing this guidance to assess the potential impact on its condensed consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and has since issued various amendments including ASU No. 2018-19, ASU No. 2019-04, and ASU No. 2019-05. The guidance establishes a new "expected loss model”, that requires entities to estimate current expected losses on financial instruments by using all practical and relevant information. Additionally, any expected credit losses are to be reflected as allowances rather than reductions in the amortized cost of available-for-sale debt securities. The new guidance will be effective for the Company for the fiscal year, and interim periods within the fiscal year, ending January 31, 2024, though early adoption is permitted. The Company is currently reviewing this guidance to assess the potential impact on its condensed consolidated financial statements.
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.

Fair Value Measurements (Tables)

9 Months Ended

Oct. 31, 2020

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis


	As of October 31, 2020
	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	400,212	$	—	$	—	$	400,212


	As of January 31, 2020
	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	98,469	$	—	$	—	$	98,469
Liabilities:
Redeemable convertible preferred stock warrant liability	$	—	$	—	$	270	$	270

Property and Equipment, Net (Tables)

9 Months Ended

Oct. 31, 2020

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property and equipment, net, consisted of the following (in thousands):


	October 31, 2020		January 31, 2020
Computer and hardware equipment	$	2,147	$	1,954
Furniture and fixtures	1,213		1,129
Leasehold improvements	2,292		2,120
Capitalized internal-use software	3,386		9,823
Gross property and equipment	9,038		15,026
Accumulated depreciation and amortization	(5,086)		(12,033)
Property and equipment, net	$	3,952	$	2,993

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):


	October 31, 2020		January 31, 2020
United States	$	3,138	$	1,970
International	814		1,023
Total long-lived assets	$	3,952	$	2,993

Acquisitions, Intangible Assets, and Goodwill (Tables)

9 Months Ended

Oct. 31, 2020

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The assets acquired and liabilities assumed in connection with the acquisition were recorded at their fair value on the date of acquisition as follows (in thousands):


	Amount
Cash	$	782
Restricted cash	300
Accounts receivable	503
Prepaid expenses and other assets	659
Fixed assets	367
Intangible assets	17,500
Goodwill	41,368
Accounts payable	(1,760)
Deferred revenue, current	(2,358)
Accrued and other current liabilities	(1,609)
Deferred revenue, noncurrent	(354)
Other noncurrent liabilities	(291)
Total acquisition consideration	$	55,107

Business Acquisition, Pro Forma Information


	Three Months Ended October 31, 2019		Nine Months Ended October 31, 2019
Revenue	$	41,503	$	113,124
Net loss	$	(34,258)	$	(81,025)

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

As of October 31, 2020, future amortization expense related to acquired developed technology was as follows (in thousands):


	Amortization Expense
Remainder of fiscal 2021	$	1,648
2022	6,148
2023	4,502
Total.	$	12,298

As of January 31, 2020, future amortization expense related to acquired developed technology was as follows (in thousands):


	Amortization Expense
2021	$	6,765
2022	6,148
2023	4,502
Total	$	17,415

Commitment and Contingencies (Tables)

9 Months Ended

Oct. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases

As of October 31, 2020, future annual minimum lease payments under non-cancelable operating leases were as follows (in thousands):


	Minimum Lease Payments
Remainder of 2021	$	1,199
2022	4,787
2023	4,649
2024	1,887
2025	404
Total	$	12,926

Revenue (Tables)

9 Months Ended

Oct. 31, 2020

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):


	Three Months Ended October 31,				Nine Months Ended October 31,
	2020		2019		2020		2019
United States	$	44,636	$	34,355	$	125,648	$	93,269
International	7,232		6,158		22,837		17,476
Total revenue	$	51,868	$	40,513	$	148,485	$	110,745

Stockholders' Equity (Deficit) and Equity Incentive Plans (Tables)

9 Months Ended

Oct. 31, 2020

Equity [Abstract]

Share-based Payment Arrangement, Option, Activity

The following table is a summary of option activity during the nine months ended October 31, 2020:


	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
	(in thousands)			(years)	(in thousands)
Balance at January 31, 2020	27,841	$	3.72	7.7	$	233,918
Options granted	1,635	$	12.12
Options exercised	(2,170)	$	2.61
Options cancelled	(2,072)	$	6.08
Balance at October 31, 2020	25,234	$	4.16	7.0	$	331,066
Options exercisable at January 31, 2020	14,141	$	2.01	6.5	$	142,932
Options exercisable at October 31, 2020	15,710	$	2.61	6.1	$	230,411

Share-based Payment Arrangement, Restricted Stock Unit, Activity

The following table is a summary of RSU activity for the nine months ended October 31, 2020:


	Number of Shares	Weighted Average Grant Date Fair Value per Share
	(in thousands)
RSUs outstanding at February 1, 2020	—
Granted	3,274	$	13.03
Forfeited	(83)	$	12.12
RSUs outstanding at October 31, 2020	3,191	$	13.06
RSUs expected to vest at October 31, 2020	3,191	$	13.06

Share-based Payment Arrangement, Expensed and Capitalized, Amount

The following table presents total stock-based compensation expense included in the condensed consolidated statements of operations (in thousands):


	Three Months Ended October 31,				Nine Months Ended October 31,
	2020		2019		2020		2019
Cost of revenue	$	213	$	50	$	314	$	96
Research and development(a)	5,728		2,474		9,606		3,953
Sales and marketing	4,747		1,960		7,863		3,866
General and administrative(b)	8,255		5,244		10,883		8,646
Total	$	18,943	$	9,728	$	28,666	$	16,561

________________

Net Loss Per Share (Tables)

9 Months Ended

Oct. 31, 2020

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):


	Three Months Ended October 31,				Nine Months Ended October 31,
	2020		2019		2020		2019
Net loss	$	(23,926)	$	(28,619)	$	(59,708)	$	(57,621)
Weighted-average shares outstanding, basic and diluted	55,816		14,650		31,044		13,953
Net loss per share, basic and diluted	$	(0.43)	$	(1.95)	$	(1.92)	$	(4.13)

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):


	Three Months Ended October 31,		Nine Months Ended October 31,
	2020	2019	2020	2019
Stock options	25,234	28,556	25,234	28,556
RSUs	3,191	—	3,191	—
ESPP	44	—	44	—
Redeemable convertible preferred stock warrants	32	32	32	32
Shares subject to repurchase	166	436	166	436
Assumed options for Jask Labs acquisition	142	265	142	265
Issuable shares for Jask Labs acquisition	543	1,325	543	1,325
Redeemable convertible preferred stock	—	63,762	—	63,762
Total anti-dilutive securities	29,352	94,376	29,352	94,376

Description of Business and Basis of Presentation (Details) - USD ($) $ / shares in Units, $ in Thousands			1 Months Ended	3 Months Ended	9 Months Ended
	Oct. 09, 2020	Sep. 21, 2020	Oct. 09, 2020	Oct. 31, 2020	Oct. 31, 2020	Oct. 31, 2019	Jan. 31, 2020
Subsidiary, Sale of Stock [Line Items]
Underwriters' discounts and commissions and offering costs					$ 1,321	$ 84
Convertible preferred stock converted into common stock per share (in shares)		1
Deferred offering costs		$ 6,500					$ 3,300
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	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
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)	$ 22.00	$ 22.00	$ 22.00
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 Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2020	Oct. 31, 2019	Oct. 31, 2020	Oct. 31, 2019
Restructuring Cost and Reserve [Line Items]
Stock-based compensation expense	$ 18,943	$ 9,728	$ 28,666	$ 16,561
COVID-19 Pandemic
Restructuring Cost and Reserve [Line Items]
Severance			1,200
Stock-based compensation expense			$ 100

Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Oct. 31, 2020	Jan. 31, 2020
Liabilities:
Redeemable convertible preferred stock warrant liability		$ 270
Money market funds
Assets:
Money market funds	$ 400,212	98,469
Level 1
Liabilities:
Redeemable convertible preferred stock warrant liability		0
Level 1 \| Money market funds
Assets:
Money market funds	400,212	98,469
Level 2
Liabilities:
Redeemable convertible preferred stock warrant liability		0
Level 2 \| Money market funds
Assets:
Money market funds	0	0
Level 3
Liabilities:
Redeemable convertible preferred stock warrant liability		270
Level 3 \| Money market funds
Assets:
Money market funds	$ 0	$ 0

Fair Value Measurements - Narrative (Details)	Sep. 21, 2020 shares
Redeemable convertible preferred stock warrants
Class of Warrant or Right [Line Items]
Number of redeemable convertible preferred stock warrants converted (in shares)	32,276

Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Oct. 31, 2020	Jan. 31, 2020
Property, Plant and Equipment [Line Items]
Gross property and equipment	$ 9,038	$ 15,026
Accumulated depreciation and amortization	(5,086)	(12,033)
Property and equipment, net	3,952	2,993
Computer and hardware equipment
Property, Plant and Equipment [Line Items]
Gross property and equipment	2,147	1,954
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Gross property and equipment	1,213	1,129
Leasehold improvements
Property, Plant and Equipment [Line Items]
Gross property and equipment	2,292	2,120
Capitalized internal-use software
Property, Plant and Equipment [Line Items]
Gross property and equipment	$ 3,386	$ 9,823

Property and Equipment, Net - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Oct. 31, 2020	Oct. 31, 2019	Oct. 31, 2020	Oct. 31, 2019
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 400,000	$ 300,000	$ 1,000,000.0	$ 1,300,000
Software capitalized	400,000	1,800,000	1,500,000	4,700,000
Amortization of internal-use software	$ 200,000	$ 200,000	500,000	800,000
Impairments of internal-use software			0	$ 0
Fully amortized internal-use software written off			$ 8,000,000.0

Property and Equipment, Net - Schedule of Long-Lived Assets by Geographical Location (Details) - USD ($) $ in Thousands	Oct. 31, 2020	Jan. 31, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	$ 3,952	$ 2,993
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	3,138	1,970
International
Revenues from External Customers and Long-Lived Assets [Line Items]
Total long-lived assets	$ 814	$ 1,023

Acquisitions, Intangible Assets, and Goodwill - Narrative (Details) - USD ($)		3 Months Ended		9 Months Ended		12 Months Ended
	Oct. 25, 2019	Oct. 31, 2020	Oct. 31, 2019	Oct. 31, 2020	Oct. 31, 2019	Jan. 31, 2020
Business Acquisition [Line Items]
Stock-based compensation expense		$ 18,943,000	$ 9,728,000	$ 28,666,000	$ 16,561,000
Net loss		(23,926,000)	(28,619,000)	(59,708,000)	(57,621,000)
Intangible assets		20,100,000		20,100,000		$ 20,100,000
Intangible assets, accumulated amortization		7,800,000		$ 7,800,000		$ 2,700,000
Weighted average remaining useful life				2 years		2 years 8 months 12 days
Amortization expense for intangible assets		1,700,000	300,000	$ 5,100,000	600,000
Impairment for intangible assets				0	0
Impairment of goodwill				0	0
Other Acquisitions
Business Acquisition [Line Items]
Consideration					$ 1,000,000.0
Weighted average remaining useful life					1 year 6 months
Jask Labs Inc.
Business Acquisition [Line Items]
Purchase consideration	$ 55,100,000