PAGERDUTY, INC., 10-K filed on 3/15/2024
Annual Report
v3.24.0.1
Cover Page - USD ($)
$ in Billions
 12 Months Ended
Jan. 31, 2024
Mar. 14, 2024
Jul. 31, 2023
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Jan. 31, 2024    
Current Fiscal Year End Date --01-31    
Document Transition Report false    
Entity File Number 001-38856    
Entity Registrant Name PAGERDUTY, INC.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 27-2793871    
Entity Address, Address Line One 600 Townsend St.    
Entity Address, Address Line Two Suite 200    
Entity Address, City or Town San Francisco    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 94103    
City Area Code 844    
Local Phone Number 800-3889    
Title of 12(b) Security Common Stock, $0.000005 par value    
Trading Symbol PD    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 2.2
Entity Common Stock, Shares Outstanding   92,751,590  
Documents Incorporated by Reference
Information required in response to Part III of Form 10-K (Items 10, 11, 12, 13 and 14) is hereby incorporated by reference to portions of the Registrant’s Proxy Statement for the Annual Meeting of Stockholders to be held in 2024. The Proxy Statement will be filed by the Registrant with the Securities and Exchange Commission no later than 120 days after the end of the Registrant’s fiscal year ended January 31, 2024.
    
Entity Central Index Key 0001568100    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Amendment Flag false    
Document Financial Statement Error Correction [Flag] false    
v3.24.0.1
Audit Information
 12 Months Ended
Jan. 31, 2024
Audit Information [Abstract]  
Auditor Firm ID 42
Auditor Name Ernst & Young LLP
Auditor Location San Francisco, California
v3.24.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Jan. 31, 2024
Jan. 31, 2023
Current assets:    
Cash and cash equivalents $ 363,011 $ 274,019
Investments 208,178 202,948
Accounts receivable, net of allowance for credit losses of $1,382 and $2,014 as of January 31, 2024 and January 31, 2023, respectively 100,413 91,345
Deferred contract costs, current 19,502 18,674
Prepaid expenses and other current assets 12,094 13,350
Total current assets 703,198 600,336
Property and equipment, net 17,632 18,390
Deferred contract costs, non-current 25,118 27,715
Lease right-of-use assets 3,789 13,982
Goodwill 137,401 118,862
Intangible assets, net 32,616 37,224
Other assets 5,552 1,364
Total assets 925,306 817,873
Current liabilities:    
Accounts payable 6,242 7,398
Accrued expenses and other current liabilities 15,472 11,804
Accrued compensation 30,239 41,834
Deferred revenue, current 223,522 204,137
Lease liabilities, current 6,180 5,904
Total current liabilities 281,655 271,077
Convertible senior notes, net 448,030 282,908
Deferred revenue, non-current 4,639 4,914
Lease liabilities, non-current 6,809 12,704
Other liabilities 5,280 4,184
Total liabilities 746,413 575,787
Commitments and contingencies (Note 10)
Redeemable non-controlling interest (Note 3) 7,293 1,108
Stockholders’ equity:    
Common stock, $0.000005 par value per share: 1,000,000,000 shares authorized as of January 31, 2024 and 2023; 95,068,187 and 91,178,671 shares issued as of January 31, 2024 and 2023, respectively, and 92,737,185 and 91,178,671 shares outstanding as of January 31, 2024 and 2023, respectively 0 0
Additional paid-in capital 774,768 719,816
Accumulated other comprehensive loss (733) (1,592)
Accumulated deficit (552,435) (477,246)
Treasury stock at cost, 2,331,002 and — shares as of January 31, 2024 and 2023, respectively (50,000) 0
Total stockholders’ equity 171,600 240,978
Total liabilities, redeemable non-controlling interest, and stockholders’ equity $ 925,306 $ 817,873
v3.24.0.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Jan. 31, 2024
Jan. 31, 2023
Statement of Financial Position [Abstract]    
Allowance for doubtful accounts $ 1,382 $ 2,014
Common stock, par value per share (in dollars per share) $ 0.000005 $ 0.000005
Common stock, shares authorized (in shares) 1,000,000,000 1,000,000,000
Common stock, shares issued (in shares) 95,068,187 91,178,671
Common stock, shares outstanding (in shares) 92,737,185 91,178,671
Treasury stock (in shares) 2,331,002 0
v3.24.0.1
Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Jan. 31, 2024
Jan. 31, 2023
Jan. 31, 2022
Income Statement And Statement Of Comprehensive Income [Abstract]      
Revenue $ 430,699 $ 370,793 $ 281,396
Cost of revenue 77,832 70,434 48,361
Gross profit 352,867 300,359 233,035
Operating expenses:      
Research and development 139,769 134,876 95,690
Sales and marketing 196,769 195,622 161,624
General and administrative 112,575 99,238 77,432
Total operating expenses 449,113 429,736 334,746
Loss from operations (96,246) (129,377) (101,711)
Interest income 22,101 5,383 762
Interest expense (6,500) (5,433) (5,398)
Gain on partial extinguishment of convertible senior notes 3,699 0 0
Other expense, net (433) (637) (573)
Loss before benefit from (provision for) income taxes (77,379) (130,064) (106,920)
Benefit from (provision for) income taxes 12 839 (535)
Net loss (77,367) (129,225) (107,455)
Net loss attributable to redeemable non-controlling interest (2,178) (802) 0
Net loss attributable to PagerDuty, Inc. (75,189) (128,423) (107,455)
Adjustment attributable to redeemable non-controlling interest 6,568 0 0
Net loss attributable to PagerDuty, Inc. common stockholders $ (81,757) $ (128,423) $ (107,455)
Net loss per share, basic (in dollars per share) $ (0.89) $ (1.45) $ (1.27)
Net loss per share, diluted (in dollars per share) $ (0.89) $ (1.45) $ (1.27)
Weighted average shares used in calculating net loss per share, basic (in shares) 92,341 88,721 84,514
Weighted average shares used in calculating net loss per share, diluted (in shares) 92,341 88,721 84,514
v3.24.0.1
Consolidated Statements of Comprehensive Loss - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2024
Jan. 31, 2023
Jan. 31, 2022
Statement of Comprehensive Income [Abstract]      
Net loss $ (77,367) $ (129,225) $ (107,455)
Unrealized gain (loss) on investments 1,341 (772) (1,012)
Foreign currency translation adjustments (482) (151) 0
Total comprehensive loss (76,508) (130,148) (108,467)
Net loss attributable to redeemable non-controlling interest (2,178) (802) 0
Foreign currency translation adjustments, attributable to redeemable non-controlling interest 14 2 0
Comprehensive loss attributable to redeemable non-controlling interest (2,164) (800) 0
Comprehensive loss attributable to PagerDuty, Inc. $ (74,344) $ (129,348) $ (108,467)
v3.24.0.1
Consolidated Statements of Shareholders' Equity - USD ($)
$ in Thousands
Total
Cumulative Effect, Period of Adoption, Adjustment
Common Stock
Additional Paid-in Capital
Additional Paid-in Capital
Cumulative Effect, Period of Adoption, Adjustment
Accumulated Other Comprehensive Income
Accumulated Deficit
Accumulated Deficit
Cumulative Effect, Period of Adoption, Adjustment
Treasury Stock
Beginning balance (in shares) at Jan. 31, 2021     82,882,424            
Beginning balance at Jan. 31, 2021 $ 366,727 $ (61,736) $ 0 $ 614,494 $ (68,478) $ 343 $ (248,110) $ 6,742  
Treasury stock, beginning balance (in shares) at Jan. 31, 2021                 0
Treasury stock, beginning balance at Jan. 31, 2021                 $ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Issuance of common stock upon exercise of stock options and restricted stock agreements, net of repurchases (in shares)     2,603,432            
Issuance of common stock upon exercise of stock options and restricted stock agreements, net of repurchases 15,099     15,099          
Vesting of restricted stock units, net of shares withheld for employee payroll taxes (in shares)     925,400            
Vesting of restricted stock units, net of shares withheld for employee payroll taxes (23,586)     (23,586)          
Shares issued related to a business combination (in shares)     2,073            
Shares issued related to a business combination $ 0     0          
Issuance of common stock in connection with the Employee Stock Purchase Program (in shares) 345,051   345,051            
Issuance of common stock in connection with the Employee Stock Purchase Plan $ 7,742     7,742          
Stock-based compensation 71,196     71,196          
Other comprehensive income (loss) (1,012)         (1,012)      
Net Income (Loss) (107,455)           (107,455)    
Ending balance (in shares) at Jan. 31, 2022     86,758,380            
Treasury stock, ending balance (in shares) at Jan. 31, 2022                 0
Treasury stock, ending balance at Jan. 31, 2022                 $ 0
Ending balance at Jan. 31, 2022 266,975   $ 0 616,467   (669) (348,823)    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Issuance of common stock upon exercise of stock options and restricted stock agreements, net of repurchases (in shares)     2,093,724            
Issuance of common stock upon exercise of stock options and restricted stock agreements, net of repurchases 10,917     10,917          
Vesting of restricted stock units, net of shares withheld for employee payroll taxes (in shares)     1,768,163            
Vesting of restricted stock units, net of shares withheld for employee payroll taxes $ (28,677)     (28,677)          
Shares issued related to a business combination (in shares)     62,972            
Issuance of common stock in connection with the Employee Stock Purchase Program (in shares) 495,432   495,432            
Issuance of common stock in connection with the Employee Stock Purchase Plan $ 9,875     9,875          
Stock-based compensation 111,234     111,234          
Other comprehensive income (loss) (923)         (923)      
Adjustment to redeemable non-controlling interest 0                
Net Income (Loss) $ (128,423)           (128,423)    
Ending balance (in shares) at Jan. 31, 2023 91,178,671   91,178,671            
Treasury stock, ending balance (in shares) at Jan. 31, 2023 0               0
Treasury stock, ending balance at Jan. 31, 2023                 $ 0
Ending balance at Jan. 31, 2023 $ 240,978   $ 0 719,816   (1,592) (477,246)    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Issuance of common stock upon exercise of stock options and restricted stock agreements, net of repurchases (in shares)     1,160,809            
Issuance of common stock upon exercise of stock options and restricted stock agreements, net of repurchases 9,435     9,435          
Vesting of restricted stock units, net of shares withheld for employee payroll taxes (in shares)     2,192,556            
Vesting of restricted stock units, net of shares withheld for employee payroll taxes (32,400)     (32,400)          
Shares issued related to a business combination (in shares)     0            
Shares issued related to a business combination $ 494     494          
Issuance of common stock in connection with the Employee Stock Purchase Program (in shares) 536,151   536,151            
Issuance of common stock in connection with the Employee Stock Purchase Plan $ 10,294     10,294          
Purchases of capped calls related to convertible senior notes (55,102)     (55,102)          
Common stock repurchased (in shares)                 (2,331,002,000)
Common stock repurchased (50,000)               $ (50,000)
Stock-based compensation 128,799     128,799          
Other comprehensive income (loss) 859         859      
Adjustment to redeemable non-controlling interest (6,568)     (6,568)          
Net Income (Loss) $ (75,189)           (75,189)    
Ending balance (in shares) at Jan. 31, 2024 92,737,185   95,068,187            
Treasury stock, ending balance (in shares) at Jan. 31, 2024 2,331,002               2,331,002,000
Treasury stock, ending balance at Jan. 31, 2024                 $ 50,000
Ending balance at Jan. 31, 2024 $ 171,600   $ 0 $ 774,768   $ (733) $ (552,435)    
v3.24.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2024
Jan. 31, 2023
Jan. 31, 2022
Cash flows from operating activities      
Net loss attributable to PagerDuty, Inc. common stockholders $ (81,757) $ (128,423) $ (107,455)
Net loss (income) and adjustment attributable to redeemable non-controlling interest (Note 3) (4,390) 802 0
Net loss (77,367) (129,225) (107,455)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:      
Depreciation and amortization 20,153 17,429 8,356
Amortization of deferred contract costs 20,568 19,247 14,923
Gain on partial extinguishment of convertible senior notes (3,699) 0 0
Stock-based compensation 127,152 109,907 70,033
Amortization of debt issuance costs 2,078 1,839 1,805
Non-cash lease expense 4,439 4,073 4,464
Impairment of property and equipment, net and lease right-of-use assets, net 8,368 0 0
Tax benefit related to release of valuation allowance 0 (1,330) 0
Other (3,223) 1,841 3,770
Changes in operating assets and liabilities:      
Accounts receivable (10,662) (16,586) (21,594)
Deferred contract costs (18,799) (22,805) (26,167)
Prepaid expenses and other assets 0 (2,843) 1,279
Accounts payable (1,453) (1,473) 2,901
Accrued expenses and other liabilities 4,145 (1,444) (99)
Accrued compensation (11,825) 6,147 6,766
Deferred revenue 18,073 37,971 40,252
Lease liabilities (5,974) (5,768) (5,255)
Net cash provided by (used in) operating activities 71,974 16,980 (6,021)
Cash flows from investing activities      
Purchases of property and equipment (2,164) (4,637) (3,457)
Capitalized internal-use software costs (5,384) (3,836) (3,353)
Business acquisition, net of cash acquired (24,071) (66,262) (160)
Asset acquisition 0 (1,845) 0
Purchases of available-for-sale investments (216,970) (212,210) (197,093)
Proceeds from maturities of available-for-sale investments 218,264 202,625 194,059
Proceeds from sales of available-for-sale investments 0 0 27,380
Purchases of non-marketable equity investments (200) 0 0
Net cash (used in) provided by investing activities (30,525) (86,165) 17,376
Cash flows from financing activities      
Proceeds from issuance of convertible senior notes, net of issuance costs 390,831 0 0
Purchases of capped calls related to convertible senior notes (55,102) 0 0
Repurchases of convertible senior notes (223,675) 0 0
Investment from redeemable non-controlling interest holder 1,781 1,908 0
Proceeds from issuance of common stock upon exercise of stock options 9,871 10,481 15,108
Proceeds from Employee Stock Purchase Plan 10,294 9,875 7,742
Employee payroll taxes paid related to net share settlement of restricted stock units (32,400) (28,677) (23,586)
Repurchase of common stock (50,000) 0 0
Net cash provided by (used in) financing activities 51,600 (6,413) (736)
Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash (401) (168) 0
Net increase (decrease) in cash, cash equivalents, and restricted cash 92,648 (75,766) 10,619
Cash, cash equivalents, and restricted cash at beginning of period 274,019 349,785 339,166
Cash, cash equivalents, and restricted cash at end of period 366,667 274,019 349,785
Cash and cash equivalents 363,011 274,019 349,785
Restricted cash in other long-term assets 3,656 0 0
Supplemental cash flow data:      
Cash paid for interest 2,971 3,594 1,797
Cash paid for income taxes 908 168 324
Non-cash investing and financing activities:      
Purchase of property and equipment, accrued but not yet paid 430 159 2,666
Stock-based compensation capitalized in internal use software 1,647 1,320 1,163
Unpaid bonus capitalized in internal use software 255 354 189
Issuance costs included in accrued expenses 413 0 0
Receivables for cash in-transit on stock options $ 0 $ 436 $ 0
v3.24.0.1
Description of Business and Basis of Presentation
 12 Months Ended
Jan. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business and Basis of Presentation Description of Business and Basis of Presentation
Description of Business
PagerDuty, Inc. was incorporated under the laws of the state of Delaware in May 2010.
PagerDuty is a digital operations management platform that manages urgent and mission-critical work for a modern, digital business. PagerDuty collects data and digital signals from virtually any software-enabled system or device and leverages powerful machine learning to correlate, process, and predict opportunities and issues. Using incident response, event management, and automation, the Company brings together the right people with the right information so they can resolve issues and act on opportunities in minutes or seconds from wherever they are.
As used herein, “PagerDuty”, “we”, “our”, “the Company” and similar terms include PagerDuty, Inc., unless the context indicates otherwise.
Basis of Presentation
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and include the results of the Company, its wholly-owned subsidiaries, and subsidiaries in which the Company holds a controlling interest. All intercompany balances and transactions have been eliminated upon consolidation. The Company’s fiscal year ends on January 31. References to fiscal 2024, for example, refer to the fiscal year ended January 31, 2024.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make, on an ongoing basis, estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. The Company’s most significant estimates and judgments involve the period of benefit for amortizing deferred contract costs, the determination of the fair value of acquired assets and assumed liabilities, stock-based compensation, and estimates related to the Company’s revenue recognition, such as the assessment of performance obligations in the Company’s revenue arrangements and the fair value assigned to each performance obligation, among others. Management bases its estimates on historical experience and on various other assumptions which management believes to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.
v3.24.0.1
Summary of Significant Accounting Policies
 12 Months Ended
Jan. 31, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Segment Information
The Company manages its operations and allocates resources as one operating segment. The Company’s chief operating decision maker (“CODM”) is its chief executive officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources. Refer to Note 15, “Geographic Information” for information regarding the Company's long-lived assets and revenue by geography.
Revenue Recognition
The Company generates revenue primarily from cloud-hosted subscription fees with the majority of its revenue from such arrangements. The Company also generates revenue from term-license software subscription fees. Revenue is recognized when control of the license or service is transferred to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services.
The Company accounts for revenue contracts with customers by applying the requirements of Topic 606, which includes the following steps: 
•Identification of the contract, or contracts, with a customer.
•Identification of the performance obligations in the contract.
•Determination of the transaction price.
•Allocation of the transaction price to the performance obligations in the contract.
•Recognition of revenue when, or as, the Company satisfies a performance obligation.
Cloud-hosted software subscriptions
The Company’s cloud-hosted software subscriptions allow customers to use its cloud-hosted software over the contract period without taking possession of the software. The Company’s cloud-hosted software subscription agreements generally have monthly or annual contractual terms. Revenue related to the Company’s cloud-hosted software subscriptions is recognized ratably over the related contractual term beginning on the date that the Company’s platform is made available to a customer. Access to the platform represents a series of distinct services as the Company continually provides access to, and fulfills its obligation to, the end customer over the subscription term. The series of distinct services represents a single performance obligation that is satisfied over time. The Company recognizes revenue ratably because the customer receives and consumes the benefits of the platform throughout the contract period.
Term-license software subscriptions
The Company’s term license software subscriptions provide both an obligation to provide access to its on-premise software, which includes both open-source and proprietary features, as well as an obligation to provide support and maintenance. The Company’s term-license software subscription agreements generally have annual contractual terms. The Company accounts for the license to the software and support as two separate performance obligations. As the open-source software is publicly available at no cost to the customer, the Company has determined that there is no value to be assigned to the open-source software in the term-license software subscription arrangements. The proprietary software license represents a promise to provide a license to use functional intellectual property that is recognized at a point in time on the date access to the software is made available to the customer and the term-license software subscription period has begun. The Company has concluded the support is a stand-ready performance obligation that consists of a series of distinct services that are satisfied ratably over time as the services are provided. The Company uses a time-based output method to measure progress because efforts are expended evenly throughout the period given the nature of the promise is a stand-ready service. The Company recognizes support revenue ratably, typically beginning on the start of the contractual term of the arrangement.
Cloud-hosted and term license software subscriptions
In order to determine the stand-alone selling price, the Company conducts a periodic analysis that requires judgment and considers multiple factors that are reasonably available and maximizes the use of observable inputs that may vary over time depending upon the unique facts and circumstances related to each performance obligation. To have observable inputs, the Company requires that a substantial majority of the stand-alone selling prices for a product offering fall within a pricing range. If a directly observable stand-alone selling price does not exist, the Company estimates a stand-alone selling price range by reviewing external and internal market factor categories, which may include pricing practices, historical discounting, industry practices, service groups, and geographic considerations. The Company believes that these analyses result in an estimate that approximates the price the Company would charge for the performance obligations if they were sold separately.
The Company’s cloud-hosted and term-license software subscription arrangements are generally non-cancellable and do not contain refund provisions. The Company bills for monthly cloud-hosted and term-license software subscriptions on a monthly basis and annually in advance for arrangements with terms of one year or more.
The price of the cloud-hosted and term-license software subscriptions is generally fixed at contract inception and therefore, the Company’s contracts do not contain a significant amount of variable consideration. As a result, the amount of revenue recognized in the periods presented from performance obligations satisfied (or partially satisfied) in previous periods due to changes in the transaction price was not material. The Company’s revenue excludes sales and other indirect taxes.
Accounts Receivable and Related Allowance for Credit Losses
Accounts receivable are recorded at the invoiced amount, net of allowances for credit losses. The allowance is based upon historical loss patterns, customer credit quality, the age of each past due invoice, and an evaluation of the potential risk of loss associated with delinquent accounts. The allowance also reflects current market conditions and reasonable and supportable forecasts of future economic conditions.
Activity related to the Company’s allowance for credit losses on accounts receivable was as follows:
Amount
(in thousands)
Balance as of January 31, 2022$1,809 
Charged to bad debt expense1,063 
Write-offs, net of recoveries(858)
Balance as of January 31, 2023$2,014 
Charged to bad debt expense1,382 
Write-offs, net of recoveries(2,014)
Balance as of January 31, 2024$1,382 
Deferred Revenue
The Company records contract liabilities to deferred revenue when amounts are invoiced in advance of performance. Deferred revenue consists of the unearned portion of customer billings. The Company’s payment terms generally provide for payment within 30 days of the invoice date. Amounts anticipated to be recognized within one year of the balance sheet date are recorded as deferred revenue, current; the remaining portion is recorded as deferred revenue, non-current in the consolidated balance sheets.
The Company applied the practical expedient in Topic 606 and did not evaluate contracts of one year or less for the existence of a significant financing component. For contracts with terms of more than a year, the Company has determined its contracts generally do not include a significant financing component as the majority relate to contracts that are billed annually in advance. The primary purpose of the Company’s invoicing terms is to provide customers with simplified and predictable ways of purchasing the Company’s cloud- hosted software subscription, not to receive financing from its customers or to provide customers with financing.
Deferred Contract Costs
Deferred contract costs consist of sales commissions earned by the Company’s sales force which are considered incremental and recoverable costs of obtaining a contract with a customer. The Company determined that sales commissions that are related to contract renewals are not commensurate with commissions earned on the initial contract. Accordingly, sales commissions for initial contracts are deferred and then amortized on a straight-line basis over a period of benefit that the Company has determined to be four years. The Company determined the period of benefit by taking into consideration its customer contracts, technology, and other factors. Amounts anticipated to be recognized within one year of the balance sheet date are recorded as deferred contract costs, current; the remaining portion is recorded as deferred contract costs, non-current in the consolidated balance sheets. Deferred contract costs are periodically reviewed for impairment. Amortization of deferred contract costs is included in sales and marketing expense in the consolidated statements of operations.
Activity related to the Company’s deferred contract costs was as follows:
Amount
(in thousands)
Balance as of January 31, 2022$42,831 
Additions to deferred contract costs22,805 
Amortization of deferred contract costs(19,247)
Balance as of January 31, 2023$46,389 
Additions to deferred contract costs18,799 
Amortization of deferred contract costs(20,568)
Balance as of January 31, 2024$44,620 
Amortization expense was $20.6 million, $19.2 million, and $14.9 million for the fiscal years ended January 31, 2024, 2023, and 2022, respectively. There was no impairment loss in relation to the costs capitalized for the periods presented.
Concentrations of Risk and Significant Customers
The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, available-for-sale investments, and accounts receivable. All of the Company’s cash equivalents and investments are invested in money market funds, United States (“U.S.”) Treasury securities, commercial paper, corporate debt securities, or U.S. Government agency securities that management believes to be of high credit quality. The Company’s cash, cash equivalents, and available-for-sale investments are spread across several different financial institutions.
No single customer accounted for more than 10% of the total accounts receivable balance as of January 31, 2024 or 2023. No single customer represented 10% or more of revenue for the fiscal years ended January 31, 2024, 2023, or 2022.
Cost of Revenue
Cost of revenue primarily consists of expenses related to providing the Company’s cloud- hosted software subscription to customers, including personnel expenses for operations and global support, payments to the Company’s third-party cloud infrastructure providers for hosting the Company’s software, payment processing fees, amortization of capitalized internal-use software costs, amortization of acquired developed technology, and allocated overhead costs for facilities, information technology, and other allocated overhead costs.
Foreign Currency Translation
The functional currency for the large majority of the Company's foreign operations is the U.S. dollar, except for one subsidiary for which the local currency is the functional currency. When a consolidated entity’s functional currency is the local currency, the Company translates the foreign functional currency financial statements to U.S. dollars using the exchange rates at the balance sheet date for assets and liabilities, the period average exchange rates for revenue and expenses, and the historical exchange rates for equity. The effects of foreign currency translation adjustments are recorded in other comprehensive income as a component of stockholders’ equity and the related periodic movements are presented in the consolidated statements of comprehensive loss. Foreign currency transaction gains and losses are included in other income (expense), net, in the consolidated statements of operations for the period. Realized foreign currency transaction gains and losses for the fiscal years ended January 31, 2024, 2023, and 2022 were not material.
Cash and Cash Equivalents
Cash and cash equivalents consist of cash on hand, highly liquid investments with original maturities of three months or less from the date of purchase, and money market funds.
Investments
The Company’s investments are classified as available-for-sale and consist of highly liquid investments, primarily commercial paper, corporate debt securities, U.S. Government agency securities, and U.S. Treasury securities. The Company determines the appropriate classification of its investments at the time of purchase and reevaluates such designation at each balance sheet date.
The Company periodically evaluates its short-term investments to assess whether those with unrealized loss positions are impaired. The Company considers various factors in determining whether to recognize an impairment charge, including the extent to which the fair value is less than the Company’s cost basis, the financial condition of the issuer and any changes thereto, and the Company’s intent to sell, or whether it is more likely than not that the Company will be required to sell, the investment before recovery of the investment’s amortized cost. If the Company determines that the investment is impaired, an impairment loss is recognized in earnings equal to the difference between the investment’s amortized cost and fair value at such date. Realized gains and losses are reported in other income, net, in the consolidated statements of operations. No impairment charges have been recognized to date.
Available-for-sale
The Company classifies its available-for-sale investments, including those with stated maturities beyond twelve months, as short-term based on their highly liquid nature and because they represent the investment of cash that is available for current operations. In addition, the Company may sell these investments at any time for use in its current operations or for other purposes, even prior to maturity. The Company's available-for-sale investments are recorded at fair market value each reporting period. Unrealized gains and losses on these available-for-sale investments are reported as a separate component of accumulated other comprehensive income in the accompanying consolidated balance sheet until realized.
Restricted Cash
The Company has classified cash that is not available for use in its operations as restricted cash. Restricted cash consists of collateral for letters of credit related to security deposits for the Company’s office facility lease arrangements. As of January 31, 2024, the Company had restricted cash of $3.7 million, all of which was classified as non-current and included in other assets in the consolidated balance sheets. The Company had no restricted cash as of January 31, 2023.
Reclassifications
Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations.
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. The Company recognized revenue from the sales of its product to related parties of $3.3 million, $1.3 million, and $2.5 million in the fiscal years ended January 31, 2024, 2023, and 2022, respectively, and billings of $3.8 million, $1.8 million, and $2.2 million in the fiscal years ended January 31, 2024, 2023, and 2022, respectively. Other related party transactions were not material for the fiscal years ended January 31, 2024, 2023, or 2022.
Property and Equipment, Net
Property and equipment, net, are stated at cost less accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of the respective assets, which is generally three to five years. Leasehold improvements are depreciated over the shorter of the estimated useful lives of the assets or the lease term.
The Company periodically reviews the estimated lives of property and equipment. If the estimated useful life assumption is reduced for any asset, the remaining unamortized balance would be amortized or depreciated over the revised estimated useful life.
Research and Development Expense
Research and development expenses consist primarily of personnel costs for the Company’s engineering, product, and design teams. Additionally, research and development expenses include contractor fees, depreciation of equipment used in research and development activities, acquisition-related expenses, and allocated overhead costs. Research and development costs are expensed as incurred.
Internal-Use Software Costs
The Company evaluates costs related to the development of its platform and certain projects for internal use incurred during the application development stage. Costs related to preliminary project activities and post-implementation activities are expensed as incurred and costs related to the application development stage are capitalized. Internal-use software is amortized on a straight-line basis over its estimated useful life, which is generally three years. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. The Company capitalized $7.3 million, $4.8 million, and $4.7 million during the fiscal years ended January 31, 2024, 2023, and 2022, respectively.
Business Combinations
The Company applies the acquisition method of accounting for business combinations. Under this method of accounting, all assets acquired and liabilities assumed are recorded at their respective fair values at the date of the acquisition. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and often involves the use of significant estimates and assumptions. These estimates can include, but are not limited to, the cash flows that an asset is expected to generate in the future, the appropriate weighted-average cost of capital, and the cost savings expected to be derived from acquiring an asset.
Goodwill, Acquired Intangible Assets, and Impairment of Long-Lived Assets
Goodwill. Goodwill represents the excess purchase consideration of an acquired business over the fair value of the net tangible and identifiable intangible assets. Goodwill is evaluated for impairment annually in the fourth quarter, and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. Triggering events that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate or a significant decrease in expected cash flows. No impairment charges were recorded during the fiscal years ended January 31, 2024, 2023, or 2022.
Acquired Intangible Assets. Acquired intangible assets consist of identifiable intangible assets, primarily developed technology and customer relationships, resulting from the Company’s business acquisition. Intangible assets are recorded at fair value on the date of acquisition and amortized over their estimated useful lives.
Impairment of Long-Lived Assets. The Company reviews long-lived assets, including property and equipment, lease right-of-use assets, capitalized internal-use software, and acquired intangible assets for impairment when events or changes in circumstances indicate that the carrying value of these assets may not be recoverable or that the useful lives are shorter than originally estimated. The evaluation is performed at the asset group level, which is the lowest level of identifiable cash flows independent of other assets. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets or asset groups are expected to generate. If the carrying value of the assets or asset group is not recoverable, the impairment recognized i s measured as the amount by which the carrying value exceeds its fair value. If the Company reduces the estimated useful life assumption for any asset, the remaining unamortized balance would be amortized or depreciated over the revised estimated useful life.
Advertising Costs
Advertising costs are expensed as incurred and are included in sales and marketing expense. Advertising costs were $9.7 million, $7.3 million, and $10.6 million for the years ended January 31, 2024, 2023, and 2022, respectively.
Stock-Based Compensation
The Company recognizes compensation expense for all stock-based payment awards, including stock options, restricted stock units (“RSUs”) and performance and market stock units (“PSUs”), based on the estimated fair value of the award on the grant date.
The Company estimates the fair value of stock options issued to employees on the date of grant using the Black-Scholes option pricing model, which is impacted by the estimated fair value of the Company’s common stock, as well as certain assumptions including the expected volatility over the term of the option awards, the expected term of the awards, risk-free interest rates and the expected dividend yield. Assumptions and estimates used in the determination of the fair value of stock options include expected volatility, expected term, risk-free rate, and expected dividend yield.
The Company estimates the fair value of RSUs at its stock price on the grant date.
The Company estimates the fair value of PSUs with performance conditions using the fair value at the date of grant, and may be adjusted over the vesting period based on interim estimates of performance against the performance condition. The fair value for PSUs with market conditions is measured using a Monte Carlo simulation approach. Expense is recorded over the vesting period under the graded-vesting attribution method.
The Company estimates the fair value of shares to be issued under the employee stock purchase plan (the “ESPP”) on the first day of the offering period using the Black-Scholes valuation model, which is impacted by the estimated fair value of the Company’s common stock, as well as certain assumptions including the expected volatility over the term of the offering period, the expected term of the awards, risk-free interest rates and the expected dividend yield. Assumptions used in the determination of the fair value of the ESPP are the same as those used in the determination of the fair value of the Company’s stock options.
The Company generally recognizes compensation expense for employee stock-based payment awards on a straight-line basis over the period during which an award recipient is required to provide services in exchange for the award (generally the vesting period of the award), with the exception of PSUs which are recognized using the accelerated attribution method. The Company accounts for forfeitures as they occur.
The fair value of each non-employee stock option is estimated at the date of grant using the Black-Scholes option pricing model and is not remeasured over the vesting term. Assumptions used in valuing non-employee stock options are generally consistent with those used for employee stock options with the exception that the expected term is over the contractual life.
Income Taxes
The Company accounts for income taxes using the asset and liability method. Under this method, the Company recognizes deferred income tax assets and liabilities for the expected future consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as for net operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. The Company recognizes the deferred income tax effects of a change in tax rates in the period of enactment.
The Company records a valuation allowance to reduce its deferred tax assets to the net amount that it believes is more likely than not to be realized. The Company considers all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income and ongoing tax planning strategies in assessing the need for a valuation allowance. Realization of its deferred tax assets is dependent primarily upon future U.S. taxable income.
The Company recognizes income tax benefits from uncertain tax positions only if it believes that it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such uncertain tax positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. Although the Company believes that it has adequately reserved for its uncertain tax positions (including net interest and penalties), it can provide no assurance that the final tax outcome of these matters will not be materially different. The Company makes adjustments to these reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made and could have a material impact on its financial position, results of operations, and cash flows.
Net Loss Per Share
Basic net loss per share is computed by dividing net loss attributable to PagerDuty Inc. common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period giving effect to all potentially dilutive securities to the extent they are dilutive. Diluted earnings per share attributable to common stockholders adjusts basic earnings per share for the potentially dilutive impact of stock-based awards as computed under the treasury stock method and convertible notes as computed under the if-converted method. Basic and diluted net loss per share of common stock were the same for each period presented as the inclusion of all potential shares of common stock outstanding would have been anti-dilutive.
Recent Accounting Pronouncements Not Yet Adopted
In December 2023, the FASB issued Accounting Standard Update (“ASU”) No. 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. This ASU is effective for fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.
In November 2023, the FASB issued ASU No. 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This ASU expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements under ASU 2023-07 are also required for public entities with a single reportable segment. This ASU is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024 and requires retrospective application to all prior periods. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements.
v3.24.0.1
Redeemable Non-Controlling Interest
 12 Months Ended
Jan. 31, 2024
Noncontrolling Interest [Abstract]  
Redeemable Non-Controlling Interest Redeemable Non-Controlling Interest
In May 2022, the Company established a joint venture in Japan (“PagerDuty K.K”) which is a variable interest entity, obtaining a 51% controlling interest. The Company has consolidated the financial results of the joint venture.
The agreements with the non-controlling interest holders of PagerDuty K.K. contain redemption features whereby the interest held by the non-controlling interest holders is redeemable either (i) at the option of the non-controlling interest holders or (ii) at the option of the Company, both beginning on the tenth anniversary of the initial capital contribution. The balance of the redeemable non-controlling interest is reported at the greater of the initial carrying amount adjusted for the redeemable non-controlling interest's share of earnings or losses and other comprehensive income or loss, or its redemption value. The resulting changes in the estimated redemption amount are recorded with corresponding adjustments against additional paid-in-capital due to the absence of retained earnings. The carrying amount of the redeemable non-controlling interest is recorded on the Company's consolidated balance sheets as temporary equity. During the year ended January 31, 2024, the Company recorded an adjustment
attributable to the redeemable non-controlling interest of $6.6 million to increase the carrying value of the redeemable non-controlling interest to its estimated redemption value. There were no adjustments attributable to the redeemable non-controlling interest recorded during the year ended January 31, 2023.

The following table summarizes the activity in the redeemable non-controlling interest for the period indicated below:
January 31,
20242023
(in thousands)
Balance at beginning of period$1,108 $— 
Investment by redeemable non-controlling interest1,781 1,908 
Net loss attributable to redeemable non-controlling interest(2,178)(802)
Adjustments to redeemable non-controlling interest6,568 — 
Foreign currency translation adjustments14 2 
Balance at end of period$7,293 $1,108 
v3.24.0.1
Balance Sheet Components
 12 Months Ended
Jan. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheet Components Balance Sheet Components
Cash, Cash Equivalents, and Investments
Cash, cash equivalents, and investments consisted of the following:
As of January 31,
20242023
(in thousands)
Cash and cash equivalents
Cash
$55,736 $67,151 
Money market funds
305,283 206,868 
Commercial paper994 — 
U.S. Treasury securities
998 — 
Total cash and cash equivalents$363,011 $274,019 
Available-for-sale investments
U.S. Treasury securities
$50,036 $51,387 
Commercial paper
2,886 34,798 
Corporate debt securities
131,259 108,827 
U.S. Government agency securities23,997 7,936 
Total available-for-sale investments$208,178 $202,948 
The following tables summarize the Company’s investments’ adjusted cost, net unrealized (losses) gains, and fair value by significant investment category as of January 31, 2024 and 2023. Gross realized gains or losses from sales of available-for-sale securities were not material for the fiscal years ended January 31, 2024 and 2023.    
As of January 31, 2024
Cost BasisUnrealized Gain (Loss), NetEstimated Fair Value
(in thousands)
Available-for-sale investments
U.S. Treasury securities $50,012 $24 $50,036 
Commercial paper2,887 (1)2,886 
Corporate debt securities131,395 (136)131,259 
U.S. Government agency securities23,983 14 23,997 
Total available-for-sale investments$208,277 $(99)$208,178 
As of January 31, 2023
Cost BasisUnrealized Loss, NetEstimated Fair Value
(in thousands)
Available-for-sale investments
U.S. Treasury securities $51,400 $(13)$51,387 
Commercial paper34,926 (128)34,798 
Corporate debt securities110,063 (1,236)108,827 
U.S. Government agency securities8,000 (64)7,936 
Total available-for-sale investments$204,389 $(1,441)$202,948 
The following tables present the Company’s available-for-sale securities by contractual maturity date as of January 31, 2024 and 2023:
As of January 31, 2024
Cost BasisRecorded Basis
(in thousands)
Due within one year$155,423 $155,158 
Due between one to five years52,854 53,020 
Total$208,277 $208,178 
January 31, 2023
Cost BasisRecorded Basis
(in thousands)
Due within one year$139,443 $138,625 
Due between one to five years64,946 64,323 
Total$204,389 $202,948 
As of January 31, 2024, there were 70 available-for-sale securities in an unrealized loss position with an aggregate fair value of $108.7 million, 33 of which were in a continuous unrealized loss position for more than 12 months. The total unrealized loss related to the 33 securities was $0.2 million. As of January 31, 2023, there were 81 available-for-sale securities in an unrealized loss position with an aggregate fair value of $174.1 million, 21 of which were in a continuous unrealized loss position for more than 12 months. The total unrealized loss related to the 21 securities was $0.7 million.
When evaluating investments for impairment, the Company reviews factors such as the extent to which fair value has been below cost basis, the financial condition of the issuer and any changes thereto, and the Company’s
intent to sell, or whether it is more likely than not that the Company will be required to sell the investment before recovery of the investment’s amortized cost. No impairment loss has been recorded on the securities included in the tables above, as the Company believes that any decrease in fair value of these securities is temporary and the Company expects to recover at least up to the initial cost of the investment for these securities. The Company has not recorded an allowance for credit losses, as the Company believes any such losses would be immaterial based on the high-grade credit rating for each of its marketable securities as of the end of each period.
Property and Equipment, Net
Property and equipment, net consisted of the following:
As of January 31,
20242023
(in thousands)
Leasehold improvements$11,334 $15,585 
Computers and equipment9,135 9,426 
Furniture and fixtures3,989 4,730 
Capitalized internal-use software18,257 10,971 
Gross property and equipment (1)
$42,715 $40,712 
Accumulated depreciation and amortization (2)
(25,083)(22,322)
Property and equipment, net$17,632 $18,390 
______________
(1) Gross property and equipment includes construction-in-progress for leasehold improvements and capitalized internal-use software of $4.2 million and $6.0 million that had not yet been placed in service as of January 31, 2024 and January 31, 2023, respectively. The costs associated with construction-in-progress are not amortized until the asset is available for its intended use.
(2) In the year ended January 31, 2024, the Company recorded impairment charges of $2.3 million, of which $1.9 million related to the Atlanta office described in more detail in Note 16 “Restructuring” and $0.4 million related to leasehold improvements impaired in the period. The impairment charge was recorded in general and administrative expenses on the consolidated statement of operations. In the year ended January 31, 2023, the Company recorded an impairment charge of $0.7 million on its capitalized internal-use software included in construction-in-progress. It was determined that the developed technology would not be placed in service as the technology was replaced with the acquired technology of Catalytic.
Depreciation and amortization expense was $8.2 million, $6.8 million, and $4.6 million for the fiscal years ended January 31, 2024, 2023, and 2022, respectively.
The carrying values of capitalized internal-use software were $13.1 million and $8.8 million as of January 31, 2024 and 2023, respectively.
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following:
As of January 31,
20242023
(in thousands)
Accrued professional fees$4,483 $4,926 
Accrued events1,773 952 
Accrued hosting and infrastructure1,843 1,384 
Accrued taxes1,007 1,711 
Accrued liabilities, other6,366 2,831 
Accrued expenses and other liabilities$15,472 $11,804 
Accrued Compensation
Accrued compensation consisted of the following:
As of January 31,
20242023
(in thousands)
Accrued bonuses$7,568 $15,594 
Accrued paid time off9,466 7,655 
Accrued compensation, other13,205 18,585 
Accrued compensation$30,239 $41,834 
v3.24.0.1
Fair Value Measurements
 12 Months Ended
Jan. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company measures its financial assets and liabilities at fair value each reporting period using a fair value hierarchy that prioritizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value, as follows:
Level 1—Valuations based on observable inputs that reflect quoted prices for identical assets or liabilities in active markets.
Level 2—Valuations based on inputs that are directly or indirectly observable in the marketplace.
Level 3—Valuations based on unobservable inputs that are supported by little or no market activity.
The following tables present information about the Company’s financial assets that are required to be measured or disclosed at fair value using the above input categories:
As of January 31, 2024
Level 1Level 2Level 3Total
(in thousands)
Money market funds$305,283 $— $305,283 
U.S. Treasury securities— 51,034 — 51,034 
Commercial paper— 3,880 — 3,880 
Corporate debt securities— 131,259 — 131,259 
U.S. Government agency securities— 23,997 — 23,997 
Total$305,283 $210,170 $— $515,453 
Included in cash equivalents$307,275 
Included in investments$208,178 
As of January 31, 2023
Level 1Level 2Level 3Total
(in thousands)
Money market funds$206,868 $— $— $206,868 
U.S. Treasury securities— 51,387 — 51,387 
Commercial paper— 34,798 — 34,798 
Corporate debt securities— 108,827 — 108,827 
U.S. Government agency securities— 7,936 — 7,936 
Total$206,868 $202,948 $— $409,816 
Included in cash equivalents$206,868 
Included in investments$202,948 
The Company’s assets that are measured by management at fair value on a recurring basis are generally classified within Level 1 or Level 2 of the fair value hierarchy.
The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. As of January 31, 2024 and 2023, the Company’s Level 2 securities are measured at fair value and classified within Level 2 in the fair value hierarchy because the company uses quoted prices to the extent available or alternative pricing sources and models utilizing market observable inputs to determine fair value.
The carrying amounts of certain financial instruments, including cash held in banks, accounts receivable, and accounts payable approximate fair value due to their short-term maturities and are excluded from the fair value table above.
Convertible Senior Notes
As of January 31, 2024, the estimated fair value of our outstanding 1.25% Convertible Senior Notes due 2025 (the “2025 Notes”) was approximately $55.5 million and the estimated fair value of our 1.5% Convertible Senior Notes due 2028 (the “2028 Notes” and, together with the 2025 Notes, the “Notes”) was approximately $440.7 million. The fair values were determined based on the quoted price for the Notes in an inactive market on the last trading day of the reporting period and are considered as Level 2 in the fair value hierarchy.
v3.24.0.1
Business Combinations
 12 Months Ended
Jan. 31, 2024
Business Combination and Asset Acquisition [Abstract]  
Business Combinations Business Combinations
Year ended January 31, 2024
On November 15, 2023, the Company completed the acquisition of Jeli, Inc. (“Jeli”), a software-as-a-service (“SaaS”) company that enables customers to effectively collaborate during and after an incident, identify improvement opportunities and action insights to drive change. The Company acquired 100% of Jeli for purchase
consideration of $29.7 million. The acquisition was accounted for as a business combination and total purchase consideration was allocated to the net identifiable tangible and intangible assets and liabilities based on their fair values on the acquisition date with the excess recorded as goodwill. The values assigned to the assets acquired and liabilities assumed may be adjusted during the measurement period of up to 12 months from the date of acquisition as further information becomes available. Any changes in the fair values of the assets acquired and liabilities assumed during the measurement period may result in adjustments to goodwill. As of January 31, 2024, the primary area that remains preliminary relates to the valuation of certain tax-related items.
The purchase price consisted of the following:
(in thousands)
Cash$29,194 
Fair value of replacement stock options attributable to pre-combination service494 
Total purchase consideration$29,688 
The following table presents the fair values of acquired assets and liabilities recorded in the Company’s consolidated balance sheet as of the acquisition date:
(in thousands)
Cash$5,123 
Accounts receivable384 
Prepaid expenses and other current assets101 
Intangible assets6,900 
Goodwill18,539 
Accrued expenses and other current liabilities(99)
Deferred revenue(1,094)
Other liabilities(30)
Deferred tax liability(136)
Total purchase consideration$29,688 
The goodwill was primarily attributed to the value of synergies created with the Company’s current and future offerings. Goodwill is not deductible for income tax purposes.
The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition:
Fair ValueUseful Life
(in thousands)(in years)
Developed technology$6,400 5
Customer relationships400 10
Trademarks100 2
Total intangible assets$6,900 
The Company also entered into holdback agreements with the founder of Jeli with $1.4 million held back in cash which is subject to the continued service of the founder and thus excluded from the purchase price. This will be recognized ratably as research and development expense over the required 1.5 year service period.
As part of the business combination, the Company issued replacement stock option awards for the unvested, in-the-money options of Jeli’s continuing employees. The portion of the fair value of the replacement awards that was related to pre-combination vesting was $0.5 million and is included as part of the consideration
transferred. The post-combination fair value was calculated as the total fair value of the replacement awards less the pre-combination fair value. This post-combination fair value was $0.4 million and will be recognized as expense over the remaining service period of the awards.
Separate from the business combination, the Company issued $7.0 million in restricted stock unit awards for continuing employees attributable to post-combination services. The Company will recognize this as stock-based compensation expense over the vesting period of 4 years.
From the date of the acquisition, the financial results of Jeli have been included in and are not material to the Company’s consolidated financial statements. Pro forma revenue and results of operations have not been presented because the historical results are not material to the consolidated financial statements in any period presented.
The Company did not complete any other business combinations in the fiscal year ended January 31, 2024.
Year ended January 31, 2023
On March 8, 2022, the Company completed the acquisition of Catalytic, a provider of a no-code/low-code workflow automation application. The Company acquired Catalytic for purchase consideration of $68.8 million in cash. The acquisition was accounted for as a business combination and the acquired assets and liabilities were recorded at their preliminary fair values on the acquisition date and any excess was recorded as goodwill. The values assigned to the assets acquired and liabilities assumed may be adjusted during the measurement period of up to 12 months from the date of acquisition as further information becomes available. Any changes in the fair values of the assets acquired and liabilities assumed during the measurement period may result in adjustments to goodwill.
The finalization of the values assigned to the assets acquired and liabilities assumed during the year ended January 31, 2024 did not result in an adjustment to goodwill.
The following table presents the fair values of acquired assets and liabilities recorded in the Company’s consolidated balance sheet as of the acquisition date:
(in thousands)
Cash and cash equivalents$2,506 
Accounts receivable and other assets801 
Prepaid expenses and other current assets841 
Intangible assets21,800 
Goodwill46,736 
Accounts payable and other liabilities(408)
Deferred revenue(856)
Other tax liabilities(1,322)
Deferred tax liability(1,330)
Total purchase consideration$68,768 
The goodwill was primarily attributed to the value of synergies created with the Company’s current and future offerings. Goodwill is not deductible for income tax purposes.
In connection with the acquisition, the Company recognized a net deferred tax liability for approximately $1.3 million, generated primarily from the difference between the tax basis and fair value of the acquired intangible assets, which increased goodwill. As the Company has a full valuation allowance as of January 31, 2023, the
Company recorded an income tax benefit for this net deferred tax liability in the consolidated statement of operations for the fiscal year ended January 31, 2023. Refer to Note 14, "Income Taxes", for further information.
The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition:
Fair ValueUseful Life
(in thousands)(in years)
Developed technology$19,200 3
Customer relationships2,600 10
Total intangible assets$21,800 
The Company also entered into holdback agreements with the two founders of Catalytic with $3.4 million held back in cash which are subject to the recipients’ continued service with the Company and thus excluded from the purchase price and will be recognized ratably as research and development expense over the original required two-year service period. Subsequent to the acquisition, in the fiscal year ended January 31, 2023, one of the original holdback agreement was amended, resulting in the acceleration of $1.6 million of research and development expense relating to a portion of the holdback agreement. During the years ended January 31, 2024 and 2023, the Company paid $2.8 million and $0.3 million, respectively, of the holdback amounts to the founders. As of January 31, 2024, $0.3 million in remaining payments are payable to the founders.
From the date of the acquisition, the financial results of Catalytic have been included in and are immaterial to the Company’s consolidated financial statements. Pro forma revenue and results of operations have not been presented because the historical results are not material to the consolidated financial statements in any period presented.
The Company did not complete any other business combinations in the fiscal year ended January 31, 2023.
v3.24.0.1
Goodwill and Acquired Intangible Assets
 12 Months Ended
Jan. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Acquired Intangible Assets Goodwill and Acquired Intangible Assets
The changes in the carrying amount of goodwill for the fiscal years ended January 31, 2024 and 2023 are as follows:
Goodwill
(in thousands)
Balance as of January 31, 2022
$72,126 
Goodwill resulting from business combination46,736 
Balance as of January 31, 2023
$118,862 
Goodwill resulting from business combination18,539 
Balance as of January 31, 2024
$137,401 
Intangible assets subject to amortization consist of the following:
As of January 31, 2024
CostAccumulated AmortizationNetWeighted Average
Remaining Useful Life
(in thousands)(in years)
Customer relationships$24,800 $(7,768)$17,032 6.9
Developed technology31,200 (16,128)15,072 2.7
Trademarks500 (410)90 1.8
Assembled workforce2,527 (2,105)422 0.3
Other intangibles, net$59,027 $(26,411)$32,616 
As of January 31, 2023
CostAccumulated AmortizationNetWeighted Average
Remaining Useful Life
(in thousands)(in years)
Customer relationships$24,400 $(5,319)$19,081 7.9
Developed technology24,800 (8,342)16,458 2.3
Trademarks400 (400)— 0.0
Assembled workforce2,527 (842)1,685 1.3
Other intangibles, net$52,127 $(14,903)$37,224 
For the fiscal years ended January 31, 2024, 2023 and 2022, amortization expense related to intangible assets was $11.5 million, $10.2 million, and $3.5 million, respectively.
As of January 31, 2024, expected amortization expense in future periods is as follows:
Year ending January 31,
(in thousands)
2025$11,751 
20265,217 
20273,760 
20283,760 
20293,493 
Thereafter4,635 
Total expected future amortization expense    $32,616 
v3.24.0.1
Leases
 12 Months Ended
Jan. 31, 2024
Leases [Abstract]  
Leases Leases
Operating Leases
The Company has entered into various non-cancellable operating leases for its office spaces with lease periods expiring between fiscal 2026 and fiscal 2029. The operating lease agreements generally provide for rental payments on a graduated basis and for options to renew, which could increase future minimum lease payments if exercised.
Lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present
value of lease payments. The lease right-of-use assets also include any lease payments made and exclude lease incentives such as tenant improvement allowances.
The operating leases typically include non-lease components such as common-area maintenance costs. The Company has elected to include non-lease components with lease payments for the purpose of calculating lease right-of-use assets and liabilities, to the extent that they are fixed. Non-lease components that are not fixed are expensed as incurred as variable lease payments.
Leases with a term of one year or less are not recognized on the consolidated balance sheets. The Company recognizes lease expense for these leases on a straight-line basis over the lease term.
In the year ended January 31, 2024, the Company entered into a sublease for a portion of the San Francisco office location. The sublease has a remaining lease term of less than two years from the sublease inception date. Sublease income, which is recorded as a reduction of rent expense, was not material for the year ended January 31, 2024.
The following table presents information about leases on the consolidated balance sheets.
As of January 31,
20242023
(in thousands)
Assets
Lease right-of-use assets$3,789 $13,982 
Liabilities
Lease liabilities6,180 5,904 
Lease liabilities, non-current6,809 12,704 
In the year ended January 31, 2024, the Company recorded impairment charges related to the lease right-of-use assets of $6.1 million, of which $5.3 million related to the Atlanta office and $0.8 million related to a separate right-of-use asset and liability associated with the San Francisco office sublease, which is the amount by which the carrying value of the right-of-use asset exceeded its estimated fair value. The estimated fair value of the subleased office was based on the present value of the estimated cash flows that could be generated from subleasing the property for the remaining lease term. The impairment charges were recorded in general and administrative expenses on the Company’s consolidated statements of operations.
There were no impairment charges recorded in the years ended January 31, 2023 and 2022.
As of January 31, 2024 and 2023, the weighted average remaining lease term was 3.2 years and 3.8 years, respectively. As of January 31, 2024 and 2023, the weighted average discount rate used to determine the net present value of the lease liabilities was 3.8% and 3.7%, respectively.
The following table presents information about leases on the consolidated statements of operations.
Year Ended January 31,
202420232022
(in thousands)
Operating lease expense$4,736 $5,651 $5,574 
Short-term lease expense1,856 1,842 756 
Variable lease expense1,149 1,363 939 
The following table presents supplemental cash flow information about the Company’s leases.
Year Ended January 31,
202420232022
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities$6,557 $7,025 $6,319 
As of January 31, 2024, remaining maturities of lease liabilities are as follows:
Year ending January 31,
(in thousands)
2025$6,554 
20262,384 
20271,910 
20281,967 
20291,011 
Gross lease payments$13,826 
Less: Imputed interest(837)
Total$12,989 
v3.24.0.1
Debt and Financing Arrangements
 12 Months Ended
Jan. 31, 2024
Debt Disclosure [Abstract]  
Debt and Financing Arrangements Debt and Financing Arrangements
2025 Convertible Senior Notes
On June 25, 2020, the Company issued an aggregate principal amount of $287.5 million of 2025 Notes in a private offering pursuant to an Indenture dated June 25, 2020 (the “2025 Indenture”).
The 2025 Notes are senior, unsecured obligations of the Company and accrue interest payable semiannually in arrears on January 1 and July 1 of each year, beginning on January 1, 2021, at a rate of 1.25% per year. The 2025 Notes will mature on July 1, 2025, unless such notes are converted, redeemed or repurchased earlier. The 2025 Notes are convertible into cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s election in the manner and subject to the terms and conditions provided in the 2025 Indenture.
In October 2023, the Company provided written notice to the trustee and the note holders of the 2025 Notes that it had irrevocably elected to settle the principal amount of its convertible senior notes in cash and pay or deliver, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock, at the
Company’s election, in respect to the remainder, if any, of the Company’s conversion obligation in excess of the aggregate principal amount of the 2025 Notes being converted.
In October 2023, the Company paid $223.7 million to repurchase $230.0 million of aggregate principal amount of the 2025 Notes with a carrying value of $227.5 million, net of unamortized issuance costs of $2.6 million. The Company recorded a gain on partial extinguishment of the 2025 Notes in the year ended January 31, 2024 of $3.7 million in the consolidated statements of operations.
2028 Convertible Senior Notes
In October 2023, the Company issued an aggregate principal amount of $402.5 million of 2028 Notes in a private offering pursuant to an Indenture dated October 13, 2023 (the “2028 Indenture” and, together with the 2025 Indenture, the “Indentures”). The total net proceeds from the debt offering, after deducting initial purchasers’ discounts and debt issuance costs of $12.0 million, paid or payable by the Company, were $390.8 million.
The 2028 Notes are senior, unsecured obligations of the Company and accrue interest payable semiannually in arrears on April 15 and October 15 of each year, beginning on April 15, 2024, at a rate of 1.50% per year. The 2028 Notes will mature on October 15, 2028, unless such notes are converted, redeemed or repurchased earlier. Upon conversion, the Company will pay cash up to the aggregate principal amount of the 2028 Notes to be converted and pay or deliver, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock, at the Company’s election, in respect to the remainder, if any, of the Company’s conversion obligation in excess of the aggregate principal amount of the 2028 Notes being converted, in the manner and subject to the terms and conditions provided in the 2028 Indenture.
Additional Terms of the Notes
Holders of the Notes may convert all or any portion of their Notes at their option at any time prior to the close of business on April 1, 2025, with respect to the 2025 Notes, or June 15, 2028, with respect to the 2028 Notes, only under the following circumstances:
•During any fiscal quarter commencing after the fiscal quarter ended October 31, 2020, with respect to the 2025 Notes, or the fiscal quarter ending January 31, 2024, with respect to the 2028 Notes (and only during such fiscal quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the relevant conversion price on each applicable trading day;
•During the five business day period after any ten consecutive trading day period (the measurement period) in which the “trading price” (as defined in the relevant Indenture) per $1,000 principal amount of such Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the relevant conversion rate on each such trading day;
•If the Company calls such Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or
•Upon the occurrence of specified corporate events, as noted in the Indenture.
On or after April 1, 2025, with respect to the 2025 Notes, or June 15, 2028, with respect to the 2028 Notes, until the close of business on the second scheduled trading day immediately preceding the relevant maturity date, holders of the Notes may convert all or any portion of their Notes at any time, regardless of the foregoing circumstances.
The initial conversion rate for the 2025 Notes is 24.95 shares of common stock per $1,000 principal amount of 2025 Notes, which is equivalent to an initial conversion price of approximately $40.08 per share of common stock. The initial conversion rate for the 2028 Notes is 36.56 shares of common stock per $1,000 principal amount of 2028 Notes, which is equivalent to an initial conversion price of approximately $27.35 per share of common stock. The conversion rate for the Notes is subject to adjustment under certain circumstances in accordance with the
terms of the relevant Indenture, but will not be adjusted for accrued and unpaid interest. In addition, following certain corporate events that occur prior to the maturity date, or if the Company delivers a notice of redemption, the Company will, in certain circumstances, increase the conversion rate for a holder who elects to convert its Notes in connection with such a corporate event or convert its notes called (or deemed called) for redemption during the related redemption period (as defined in the relevant Indenture), as the case may be.
The Company may not redeem the 2025 Notes prior to July 6, 2023 or the 2028 Notes prior to October 20, 2026. The Company may redeem for cash all or any portion of the Notes, at its option, with respect to the 2025 Notes, on a redemption date occurring on or after July 6, 2023 and prior to the 41st scheduled trading day immediately preceding the maturity date of the 2025 Notes, or with respect to the 2028 Notes, on a redemption date occurring on or after October 20, 2026 and prior to the 61st scheduled trading day immediately preceding the maturity date of the 2028 Notes, if the last reported sale price of the common stock has been at least 130% of the relevant conversion price for the Notes then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the 2025 Notes or the 2028 Notes.
If the Company undergoes a fundamental change (as defined in the relevant Indenture), holders may require the Company to repurchase for cash all or any portion of their Notes at a fundamental change repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date.
The Indentures governing the Notes contain customary terms and covenants, including that upon certain events of default occurring and continuing, the trustee or the holders of at least 25% in aggregate principal amount of the outstanding 2025 Notes or 2028 Notes may declare the entire principal of all such 2025 Notes or 2028 Notes plus accrued and unpaid interest to be immediately due and payable.
Accounting for the Notes
The Company early adopted ASU 2020-06 “Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” as of February 1, 2021 using the modified retrospective approach. As a result, the Notes are accounted for as a single liability measured at their amortized cost, as no other embedded features require bifurcation and recognition as derivatives. The Notes are classified as long-term liabilities as of January 31, 2024. Issuance costs are being amortized to interest expense over the contractual term of the Notes at an effective interest rate of 2.13% for the 2028 Notes and 1.91% for the 2025 Notes.
The net carrying amount of the Notes as of January 31, 2024 and 2023 was as follows:
As of January 31, 2024As of January 31, 2023
(in thousands)
2025 Notes2028 NotesTotal2025 Notes
Principal$57,500 $402,500 $460,000 $287,500 
Less: unamortized issuance costs(597)(11,373)(11,970)(4,592)
Net carrying amount$56,903 $391,127 $448,030 $282,908 
Interest expense recognized related to the Notes during the year ended January 31, 2024, 2023, and 2022 is as follows:
Year Ended January 31,
202420232022
(in thousands)
Contractual interest expense$4,422 $3,594 $3,594 
Amortization of debt issuance costs2,078 1,839 1,804 
Total interest expense related to the Notes$6,500 $5,433 $5,398 
Capped Call Transactions
In connection with the offering of the 2025 Notes, the Company entered into privately negotiated capped call transactions (the “2025 Capped Calls”) with certain financial institution counterparties and in connection with the offering of the 2028 Notes, the Company entered into separate privately negotiated capped call transactions (the “2028 Capped Calls” and, together with the 2025 Capped Calls, the “Capped Calls”). The Capped Calls are generally intended to reduce or offset the potential dilution to the common stock upon any conversion of the 2025 Notes or the 2028 Notes, as applicable, with such reduction or offset, as the case may be, subject to a cap based on the cap price of such Capped Calls. For accounting purposes, the Capped Calls are separate transactions, and not part of the terms of the 2025 Notes or the 2028 Notes, as applicable. The Capped Calls are recorded in stockholders’ equity and are not accounted for as derivatives. The cost of $35.7 million incurred to purchase the 2025 Capped Calls and the cost of $55.1 million incurred to purchase the 2028 Capped Calls were each recorded as a reduction to additional paid-in capital in the accompanying consolidated balance sheets. The Capped Calls will not be remeasured as long as they continue to meet the conditions for equity classification.
The 2025 Capped Calls each have an initial strike price of approximately $40.08 per share, subject to certain adjustments, which corresponds to the initial conversion price of the 2025 Notes. The 2025 Capped Calls have an initial cap price of $61.66 per share, subject to certain adjustments. The 2025 Capped Calls cover, subject to anti-dilution adjustments, approximately 7.2 million shares of our common stock. The 2025 Capped Calls are subject to automatic exercise over a 40 trading day period commencing on May 2, 2025, subject to earlier termination under certain circumstances and may be settled in cash, shares of common stock or a combination of cash and shares of common stock, at the Company’s election. The 2025 Capped Calls remain outstanding.
The 2028 Capped Calls each have an initial strike price of approximately $27.35 per share, subject to certain adjustments, which corresponds to the initial conversion price of the 2028 Notes. The 2028 Capped Calls have an initial cap price of $42.90 per share, subject to certain adjustments. The 2028 Capped Calls cover, subject to anti-dilution adjustments, approximately 14.7 million shares of our common stock. The 2028 Capped Calls are subject to automatic exercise over a 60 trading day period commencing on July 20, 2028, subject to earlier termination under certain circumstances and may be settled in cash, shares of common stock or a combination of cash and shares of common stock, at the Company’s election.
v3.24.0.1
Commitments and Contingencies
 12 Months Ended
Jan. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Contractual Commitments
The Company’s contractual obligations are as follows for the years ending January 31:
Purchase Commitments(1)
Senior Convertible Notes(2)
Total
Year ending January 31,
2025$34,697 $6,643 $41,340 
20262,499 63,820 66,319 
20271,556 6,021 7,577 
2028790 6,021 6,811 
2029264 407,011 407,275 
Thereafter— — — 
Total$39,806 $489,516 $529,322 
(1) Primarily relates to contractual third-party services.
(2) Includes principal and interest payments. For more information regarding the Company’s convertible senior notes, refer to Note 9, “Debt and Financing Arrangements”.
Legal Matters
From time to time in the normal course of business, the Company may be subject to various claims and other legal matters arising in the ordinary course of business. The Company investigates these claims as they arise and accrues estimates for resolution of legal and other contingencies when losses are probable and estimable. The Company is not currently a party to any material legal proceedings nor is it aware of any pending or threatened litigation that could reasonably be expected to have a material adverse effect on its business, financial condition, results of operations, or cash flows.
Warranties and Indemnification
The Company has entered into service-level agreements with a portion of its customers defining levels of uptime reliability and performance and permitting those customers to receive credits if the Company fails to meet the defined levels of uptime. To date, the Company has not experienced any significant failures to meet defined levels of uptime reliability and performance as a result of those agreements and, as a result, the Company has not incurred or accrued any material liabilities related to these agreements in the financial statements.
In the ordinary course of business, the Company may agree to indemnify customers, vendors, lessors, business partners, and other parties with respect to certain matters, including, but not limited to, losses arising out of the breach of such agreements, services to be provided by the Company, or from intellectual property infringement claims made by third parties. As permitted under Delaware law, the Company has entered into indemnification agreements with its directors and certain officers and employees that will require us, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers, or employees. No demands have been made upon the Company to provide indemnification under such agreements, and there are no claims that the Company is aware of that could have a material effect on its consolidated balance sheets, consolidated statements of operations and comprehensive loss, or consolidated statements of cash flows.
v3.24.0.1
Deferred Revenue and Performance Obligations
 12 Months Ended
Jan. 31, 2024
Revenue from Contract with Customer [Abstract]  
Deferred Revenue and Performance Obligations Deferred Revenue and Performance Obligations
The following table presents the changes to the Company’s deferred revenue:
Year Ended January 31,
202420232022
(in thousands)
Deferred revenue, beginning of period$209,051 $170,224 $129,972 
Billings448,715 408,764 321,648 
Deferred revenue assumed in business combinations1,094 856 — 
Revenue recognized(430,699)(370,793)(281,396)
Deferred revenue, end of period$228,161 $209,051 $170,224 
Approximately 48%, 44%, and 44% of total revenue recognized in the fiscal years ended January 31, 2024, 2023, and 2022 was from the deferred revenue balance as of January 31, 2023, 2022 and 2021, respectively.
As of January 31, 2024, future estimated revenue related to performance obligations for cloud-hosted and term-license software subscriptions with original expected terms of more than one year that are unsatisfied or partially unsatisfied at the end of the reporting periods was approximately $247.0 million. The Company expects to satisfy the substantial majority of these unsatisfied performance obligations over the next 24 months and the remainder thereafter. The Company applied the optional exemption for subscriptions with original expected terms of less than one year.
v3.24.0.1
Common Stock and Stockholders' Equity
 12 Months Ended
Jan. 31, 2024
Equity [Abstract]  
Common Stock and Stockholders' Equity Common Stock and Stockholders’ Equity
Common Stock Repurchase
In October 2023, the Company repurchased a total of 2,331,002 shares of the Company’s common stock through open market purchases at an average per share price of $21.45 for a total repurchase price of $50.0 million. The cost of repurchased shares are recorded as Treasury Stock in the consolidated balance sheets.
Equity Incentive Plan
The Company has the 2019 Equity Incentive Plan (the “2019 Plan”). As of January 31, 2024 and January 31, 2023, respectively, the Company was authorized to grant up to 31,519,553 shares and 28,881,327 shares of common stock under the 2019 Plan. The Company currently uses authorized and unissued shares to satisfy stock award exercises and settlement of RSUs and PSUs. As of January 31, 2024 and January 31, 2023, there were 17,178,454 shares and 13,581,239 shares available for future issuance under the 2019 Plan, respectively.
Shares of common stock reserved for future issuance are as follows:
January 31, 2024
Outstanding stock options and unvested RSUs and PSUs13,362,015 
Available for future stock option, RSU, and PSU grants17,178,454 
Available for ESPP3,346,858 
Total common stock reserved at January 31, 202433,887,327 
Stock Option Activity
Stock option activity is as follows:
Number of
Shares
Weighted
Average Exercise
Price
Weighted
Average
Remaining
Contractual Term
Aggregate
Intrinsic Value
(in thousands)
Outstanding at January 31, 20236,150,981 $10.61 5.3$117,986 
Granted61,719 $13.00 
Exercised(1,160,809)$8.13 
Canceled(176,866)$36.41 
Outstanding at January 31, 20244,875,025 $10.29 4.4$68,151 
Vested as of January 31, 20244,693,573 $9.73 4.3$67,142 
The Company uses the Black-Scholes option-pricing model to estimate the fair value of stock options on the date of grant. The Company accounts for forfeitures as they occur. The following assumptions were used to calculate the fair value of employee stock option grants made during the periods:
Year Ended January 31,
202420232022
Expected dividend yield— — — 
Expected volatility55.0 %47.1 %
43.8% - 46.9%
Expected term (years)5.26.16.1
Risk-free interest rate
4.50% - 4.60%
2.50 %
1.04% - 1.35%
Stock options granted during the fiscal years ended January 31, 2024, 2023, and 2022 had a weighted average grant date fair value of $13.00, $16.46, and $18.26 per share, respectively. The aggregate intrinsic value of stock options exercised during the fiscal years ended January 31, 2024, 2023, and 2022 was $22.7 million, $50.8 million, and $91.0 million, respectively.
The intrinsic value for options exercised is the difference between the market value of the stock and the exercise price of the stock option at the date of exercise.
As of January 31, 2024, there was approximately $2.1 million of total unrecognized compensation cost related to unvested stock options granted under the 2019 Plan, which will be recognized over a weighted average period of 1.6 years.
Restricted Stock Units
A summary of the Company’s RSU activity and related information is as follows:
Number of RSUs
Weighted
Average Grant Date Fair Value Per Share
Outstanding at January 31, 20238,012,482 $32.55 
Granted4,645,217 $30.21 
Vested(2,170,707)$32.12 
Forfeited or canceled(3,074,936)$33.24 
Outstanding at January 31, 20247,412,056 $31.08 
The fair value of RSUs is based on the fair value of the underlying shares on the date of grant. The Company accounts for forfeitures as they occur.
As of January 31, 2024, there was $214.4 million of unrecognized stock-based compensation expense related to unvested RSUs, which is expected to be recognized over a weighted average period of 2.3 years based on vesting under the award service conditions.
Performance Stock Units
The Company grants PSUs to certain employees of the Company for which the ultimate number of units that will vest are determined based on the achievement of market and/or performance conditions at the end of the stated performance period.
The Company grants shares of PSUs to certain employees of the Company, which are to vest based on the level of achievement of a Company target related to PagerDuty’s operating plan and the relative growth of the per share price of the Company’s common stock as compared to the S&P Software & Services Select Index over the one-year performance period. The PSUs vest over a three-year period, subject to continuous service with the Company. The number of shares of the Company’s common stock that will vest based on the performance and market conditions can range from 0% to 200% of the target amount. Compensation expense for PSUs with performance conditions is measured using the fair value at the date of grant, and may be adjusted over the vesting period based on interim estimates of performance against the performance condition. Compensation expense for PSUs with market conditions is measured using a Monte Carlo simulation approach. Expense is recorded over the vesting period under the graded-vesting attribution method.
In the three months ended April 30, 2023, the Compensation Committee of the Board certified the results of PagerDuty’s operating plan for the fiscal year ended January 31, 2023. Based on the results, the PSUs granted in April 2022 (“2022 PSU Awards”) were cancelled as the target was not met.
A summary of the Company’s PSU activity and related information is as follows:
Number of PSUs
Weighted
Average Grant Date Fair Value Per Share
Outstanding at January 31, 2023825,058 $33.27 
Granted(1)
594,290 $34.98 
Vested(21,849)$41.17 
Forfeited or canceled(156,524)$35.84 
Performance adjustment for 2022 PSU Awards(698,983)$29.22 
Outstanding at January 31, 2024541,992 $35.08 
(1)This amount represents awards granted at 100% attainment.
During the year ended January 31, 2024, the Company recorded stock-based compensation expense for the number of PSUs considered probable of vesting based on the attainment of the performance targets.
As of January 31, 2024, total unrecognized stock-based compensation cost related to PSUs was $4.9 million. This unrecognized stock-based compensation cost is expected to be recognized using the accelerated attribution method over a weighted-average period of approximately 1.3 years.
Employee Stock Purchase Plan
The Company’s ESPP generally provides for 24-month offering periods beginning June 15 and December 15 of each year, with each offering period consisting of four six-month purchase periods. On each purchase date, eligible employees will purchase the shares at a price per share equal to 85% of the lesser of (1) the fair market value of the Company’s stock as of the beginning of the offering period or (2) the fair market value of the Company’s stock on the purchase date, as defined in the ESPP.
The following assumptions were used to calculate the fair value of shares to be granted under the ESPP during the periods:
Year Ended January 31,
202420232022
Expected dividend yield— — — 
Expected volatility
35.8% - 60.1%
44.1% - 65.6%
41.2% - 53.9%
Expected term (years)
0.5 - 2.0
0.5 - 2.0
0.5 - 2.0
Risk-free interest rate
0.69% - 5.29%
0.11% - 4.62%
0.05% - 1.64%
During the fiscal years ended January 31, 2024, 2023 and 2022, the Company recognized $6.0 million, $4.9 million, and $4.7 million of stock-based compensation expense related to the ESPP, respectively, and withheld $10.2 million, $10.0 million, and $9.7 million in contributions from employees, respectively. In the fiscal year ended January 31, 2024, 536,151 shares of common stock were issued at a weighted average purchase price of $19.20 per share. In the fiscal year ended January 31, 2023, 495,432 shares of common stock were issued at a weighted average purchase price of $19.93 per share. In the fiscal year ended January 31, 2022, 345,051 shares of common stock were issued at a weighted average purchase price of $22.44 per share.
Stock-Based Compensation
Stock-based compensation expense included in the Company’s consolidated statements of operations is as follows:
Year Ended January 31,
202420232022
(in thousands)
Cost of revenue$7,586 $6,827 $3,751 
Research and development44,800 39,012 23,764 
Sales and marketing30,345 29,804 19,012 
General and administrative44,421 34,264 23,506 
Total$127,152 $109,907 $70,033 
v3.24.0.1
Net Loss per Share
 12 Months Ended
Jan. 31, 2024
Earnings Per Share [Abstract]  
Net Loss per Share Net Loss per Share
Net loss used for the purpose of determining basic and diluted net loss per share is determined by taking net loss attributable to PagerDuty, Inc., less the redeemable non-controlling interests redemption value adjustment.
The following table presents the calculation of basic and diluted net loss per share attributable to PagerDuty, Inc. common stockholders:
Year Ended January 31,
202420232022
(in thousands, except per share data)
Numerator:
Net loss attributable to PagerDuty, Inc.$(75,189)$(128,423)$(107,455)
Adjustment attributable to redeemable non-controlling interest6,568 — — 
Net loss attributable to PagerDuty, Inc. common stockholders(81,757)(128,423)(107,455)
Denominator:
Weighted average shares used in calculating net loss per share, basic and diluted
92,341 88,721 84,514 
Net loss per share, basic and diluted, attributable to PagerDuty, Inc. common stockholders$(0.89)$(1.45)$(1.27)

Since the Company was in a loss position for the periods presented, basic net loss per share is the same as diluted net loss per share as the inclusion of all potential common stock outstanding would have been anti-dilutive. Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows:
As of January 31,
202420232022
(in thousands)
Shares subject to outstanding common stock awards12,829 14,989 14,522 
Shares issuable pursuant to the 2019 ESPP105 106 71 
Restricted stock issued to acquire key personnel25 63 122 

Additionally, as of January 31, 2023 and 2022, using the conversion rate of 24.95 shares of common stock per $1,000 principal amount of the 2025 Notes, the potentially dilutive shares that were not included in the diluted per share calculations was 7.2 million for both periods.
In October 2023, the Company provided written notice to the trustee and the note holders of the 2025 Notes that it had irrevocably elected to settle the principal amount of its convertible senior notes in cash and pay or deliver, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock, at the Company’s election, in respect to the remainder, if any, of the Company’s conversion obligation in excess of the aggregate principal amount of the 2025 Notes being converted. As described in Note 9, “Debt and Financing Arrangements,” upon conversion of the 2028 Notes, the Company will pay cash up to the aggregate principal amount of the 2028 Notes to be converted and pay or deliver, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock, at the Company’s election, in respect to the remainder, if any, of the Company’s conversion obligation in excess of the aggregate principal amount of the 2028 Notes being converted. As of January 31, 2024, the conversion options of the Notes were out of money and as a result, there were no potentially dilutive shares related to the conversion of the Notes.
v3.24.0.1
Income Taxes
 12 Months Ended
Jan. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The components of income (loss) before income taxes are as follows:
Year Ended January 31,
202420232022
(in thousands)
Domestic$(75,375)$(130,971)$(111,426)
Foreign(2,004)907 4,506 
Loss before provision (benefit from) for income taxes$(77,379)$(130,064)$(106,920)

The components of the provision (benefit from) for income tax are as follows:
Year Ended January 31,
202420232022
(in thousands)
Current
Federal$— $— $— 
State117 — — 
Foreign466 267 181 
Total current tax expense$583 $267 $181 
Deferred
Federal$(97)$(794)$— 
State(39)(536)— 
Foreign(459)224 354 
Total deferred tax expense (benefit) $(595)$(1,106)$354 
Provision (benefit from) for income taxes$(12)$(839)$535 

A reconciliation of the Company’s recorded provision (benefit from) for income tax to the amount of taxes computed at the U.S. statutory rate is as follows:
Year Ended January 31,
202420232022
(in thousands)
Income taxes computed at U.S. federal statutory rate$(16,249)$(27,313)$(22,453)
State taxes, net of federal benefit(2,029)(5,044)(8,652)
Stock-based compensation8,695 554 (15,423)
Foreign rate differential428 300 (411)
Tax credits, net of FIN48 reserves(1,956)(1,789)(1,426)
Change in valuation allowance10,169 31,350 48,364 
Other930 1,103 536 
(Benefit from) provision for income taxes$(12)$(839)$535 
Deferred income taxes arise from temporary differences between the carrying values of assets and liabilities for financial reporting purposes and income tax reporting purposes, as well as operating losses and tax credit carryforwards. Significant components of the Company’s deferred tax assets and liabilities are as follows:
As of January 31,
20242023
(in thousands)
Deferred tax assets:
Net operating losses$122,343 $117,735 
Capitalized research and development34,757 25,568 
Allowances and accruals7,374 10,154 
Stock-based compensation11,096 11,549 
Charitable contributions3,983 3,997 
Tax credits14,704 12,105 
Lease liabilities3,262 4,659 
Other1,311 1,519 
Gross deferred tax assets$198,830 $187,286 
Less: valuation allowance(177,078)(162,865)
Net deferred tax assets$21,752 $24,421 
Deferred tax liabilities:
Deferred commissions$(11,565)$(12,089)
Intangible assets(11,357)(11,544)
Lease assets(958)(3,497)
Other(448)(324)
Gross deferred tax liabilities$(24,328)$(27,454)
Net deferred tax liabilities$(2,576)$(3,033)
The realization of deferred tax assets is dependent upon the generation of sufficient taxable income of the appropriate character in future periods. The Company regularly assesses the ability to realize its deferred tax assets and establishes a valuation allowance if it is more likely than not that some portion of the deferred tax assets will not be realized. The Company weighs all available positive and negative evidence, including its earnings history and results of recent operations, scheduled reversals of deferred tax liabilities, projected future taxable income, and tax planning strategies. Due to the weight of objectively verifiable negative evidence, including its history of losses in the United States and Japan, the Company believes that it is more likely than not that its U.S., federal and state, and Japan deferred tax assets will not be realized. Accordingly, the Company has recorded a full valuation allowance on such deferred tax assets. The valuation allowance against its various deferred tax assets increased by $14.2 million and $40.8 million during the fiscal years ended January 31, 2024 and 2023, respectively.
As of January 31, 2024, the Company had federal net operating loss carryforwards in the amount of $458.5 million. Beginning in 2036, $21.3 million of the federal net operating losses will begin to expire. The remaining $437.2 million will carry forward indefinitely. As of January 31, 2024, the Company had state and foreign net operating loss carryforwards in the amount of $30.4 million and $6.7 million, respectively, which begin to expire in 2028 and 2033, respectively. Utilization of the Company’s net operating loss may be subject to annual limitations due to the ownership change limitations provided by section 382 of the Internal Revenue Code and similar state provisions. The Company’s net operating loss carryforwards could expire before utilization if subject to annual limitations.
As of January 31, 2024, the Company had federal, California, and Canadian research and development credit carryforwards of $14.1 million, $7.0 million, and $2.2 million, respectively. The federal research and development
credits will begin to expire in 2031, the California research and development credits have no expiration, and the Canadian research and development credits will begin to expire in 2042.
The following table summarizes the activity related to the Company’s unrecognized tax benefits:
Year Ended January 31,
202420232022
(in thousands)
Balance at beginning of period$7,723 $6,190 $5,018 
Additions related to prior years 110 85 86 
Reductions related to prior years (192)(18)(70)
Additions related to current year 1,424 1,304 1,156 
Additions related to acquired positions— 162 — 
Balance at end of period$9,065 $7,723 $6,190 

All of the Company’s tax years remain open for examination by U.S. federal and state tax authorities. The non-U.S. tax returns remain open for examination for the years 2017 and onwards. Due to its U.S. federal and state valuation allowance, $0.9 million, $1.0 million, and $1.1 million of unrecognized tax benefits as of January 31, 2024, 2023, and 2022, respectively, would affect the effective tax rate if recognized. The Company recognizes interest and penalties related to unrecognized tax benefits as provision for income taxes. The Company has accrued an immaterial amount of interest and penalties associated with its unrecognized tax benefits noted above as of January 31, 2024. The Company does not anticipate the total amounts of unrecognized tax benefits will significantly decrease in the next 12 months.
U.S. income tax has not been recognized on the excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries that is indefinitely reinvested outside the United States. As a result of current U.S. tax law, the tax impact of future distributions of foreign earnings would generally be limited to withholding tax from local jurisdictions. The amount of the deferred tax liability on the excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries is not material.
v3.24.0.1
Geographic Information
 12 Months Ended
Jan. 31, 2024
Segment Reporting [Abstract]  
Geographic Information Geographic Information
Revenue by location is generally determined by the billing address of the customer. The following table sets forth revenue by geographic area:
Year Ended January 31,
202420232022
(in thousands)
United States$312,165 $283,266 $212,829 
International118,534 87,527 68,567 
Total$430,699 $370,793 $281,396 
Other than the United States, no other individual country accounted for 10% or more of revenue for the fiscal years ended January 31, 2024, 2023, or 2022. As of January 31, 2024, 73% of the Company’s long-lived assets, including property and equipment and right-of-use lease assets, were located in the United States, 20% were located in Canada, 4% were located in Portugal, 2% were located in the United Kingdom and 1% were located in Chile. As of January 31, 2023, 88% of the Company’s long-lived assets, including property and equipment and right-of-use lease assets, were located in the United States, 10% were located in Canada, 1% were located in Portugal and 1% were located in the United Kingdom.
v3.24.0.1
Restructuring Costs
 12 Months Ended
Jan. 31, 2024
Restructuring and Related Activities [Abstract]  
Restructuring Costs Restructuring Costs
In January 2024, in an effort to rationalize the Company’s real estate footprint, the Atlanta leased office spaces began to be decommissioned in order to be vacated. As a result, the Company recorded a $7.2 million impairment charge in the period, of which $5.3 million related to lease right-of-use-assets and $1.9 million related to leasehold improvements. The impairment charge was recorded in general and administrative expenses on our consolidated statement of operations.
In July 2023, the Company recorded an impairment charge of $1.2 million, of which $0.4 million related to leasehold improvements and $0.8 million related to right of use lease assets and liabilities abandoned in the period as a result of the San Francisco office sublease. The impairment charge was recorded in general and administrative expenses on our consolidated statement of operations.
In January 2023, as part of the Company’s ongoing actions to drive efficient growth and expand operating margins, the Company began implementing changes that included reallocating certain roles and realigning teams to continue to improve operational resiliency and agility. The immediate impact was a 7% reduction in headcount, as some roles are eliminated and new roles created in high-talent, lower-cost geographies. During the fiscal year ended January 31, 2023, the Company incurred costs associated with the restructuring plan of approximately $5.0 million which is primarily comprised of severance payments, employee benefit contributions and other related costs. In connection with this action, the Company recorded the restructuring costs within the cost of sales, research and development, sales and marketing, and general and administrative operating expense line items of its consolidated statements of operations as of January 31, 2023.
The Company incurred immaterial additional personnel costs related to the reduction in headcount during the year ended January 31, 2024. The amounts accrued as of January 31, 2023 and the immaterial additional costs incurred during the year ended January 31, 2024 were paid during the year ended January 31, 2024, with no remaining balances accrued as of January 31, 2024.
v3.24.0.1
401(k) Plan
 12 Months Ended
Jan. 31, 2024
Retirement Benefits [Abstract]  
401(k) Plan 401(k) Plan
The Company has a qualified defined contribution plan under Section 401(k) of the Internal Revenue Code covering eligible employees. The 401(k) plan allows each participant to contribute up to an amount not to exceed an annual statutory maximum. The Company is responsible for the administrative costs of the 401(k) plan, and effective January 1, 2022, the employer matching contribution was two percent (2%) of each participant’s employee contributions of at least 2% of eligible wages during the period. During the fiscal years ended January 31, 2024, 2023, and 2022, the Company recognized expense of $3.6 million, $2.6 million, and $1.3 million, respectively, related to matching contributions.
v3.24.0.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Jan. 31, 2024
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and include the results of the Company, its wholly-owned subsidiaries, and subsidiaries in which the Company holds a controlling interest. All intercompany balances and transactions have been eliminated upon consolidation. The Company’s fiscal year ends on January 31. References to fiscal 2024, for example, refer to the fiscal year ended January 31, 2024.
Use of Estimates
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make, on an ongoing basis, estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. The Company’s most significant estimates and judgments involve the period of benefit for amortizing deferred contract costs, the determination of the fair value of acquired assets and assumed liabilities, stock-based compensation, and estimates related to the Company’s revenue recognition, such as the assessment of performance obligations in the Company’s revenue arrangements and the fair value assigned to each performance obligation, among others. Management bases its estimates on historical experience and on various other assumptions which management believes to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.
Segment Information
Segment Information
The Company manages its operations and allocates resources as one operating segment. The Company’s chief operating decision maker (“CODM”) is its chief executive officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources.
Revenue Recognition, Deferred Revenue, Deferred Contract Costs, and Cost of Revenue
Revenue Recognition
The Company generates revenue primarily from cloud-hosted subscription fees with the majority of its revenue from such arrangements. The Company also generates revenue from term-license software subscription fees. Revenue is recognized when control of the license or service is transferred to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services.
The Company accounts for revenue contracts with customers by applying the requirements of Topic 606, which includes the following steps: 
•Identification of the contract, or contracts, with a customer.
•Identification of the performance obligations in the contract.
•Determination of the transaction price.
•Allocation of the transaction price to the performance obligations in the contract.
•Recognition of revenue when, or as, the Company satisfies a performance obligation.
Cloud-hosted software subscriptions
The Company’s cloud-hosted software subscriptions allow customers to use its cloud-hosted software over the contract period without taking possession of the software. The Company’s cloud-hosted software subscription agreements generally have monthly or annual contractual terms. Revenue related to the Company’s cloud-hosted software subscriptions is recognized ratably over the related contractual term beginning on the date that the Company’s platform is made available to a customer. Access to the platform represents a series of distinct services as the Company continually provides access to, and fulfills its obligation to, the end customer over the subscription term. The series of distinct services represents a single performance obligation that is satisfied over time. The Company recognizes revenue ratably because the customer receives and consumes the benefits of the platform throughout the contract period.
Term-license software subscriptions
The Company’s term license software subscriptions provide both an obligation to provide access to its on-premise software, which includes both open-source and proprietary features, as well as an obligation to provide support and maintenance. The Company’s term-license software subscription agreements generally have annual contractual terms. The Company accounts for the license to the software and support as two separate performance obligations. As the open-source software is publicly available at no cost to the customer, the Company has determined that there is no value to be assigned to the open-source software in the term-license software subscription arrangements. The proprietary software license represents a promise to provide a license to use functional intellectual property that is recognized at a point in time on the date access to the software is made available to the customer and the term-license software subscription period has begun. The Company has concluded the support is a stand-ready performance obligation that consists of a series of distinct services that are satisfied ratably over time as the services are provided. The Company uses a time-based output method to measure progress because efforts are expended evenly throughout the period given the nature of the promise is a stand-ready service. The Company recognizes support revenue ratably, typically beginning on the start of the contractual term of the arrangement.
Cloud-hosted and term license software subscriptions
In order to determine the stand-alone selling price, the Company conducts a periodic analysis that requires judgment and considers multiple factors that are reasonably available and maximizes the use of observable inputs that may vary over time depending upon the unique facts and circumstances related to each performance obligation. To have observable inputs, the Company requires that a substantial majority of the stand-alone selling prices for a product offering fall within a pricing range. If a directly observable stand-alone selling price does not exist, the Company estimates a stand-alone selling price range by reviewing external and internal market factor categories, which may include pricing practices, historical discounting, industry practices, service groups, and geographic considerations. The Company believes that these analyses result in an estimate that approximates the price the Company would charge for the performance obligations if they were sold separately.
The Company’s cloud-hosted and term-license software subscription arrangements are generally non-cancellable and do not contain refund provisions. The Company bills for monthly cloud-hosted and term-license software subscriptions on a monthly basis and annually in advance for arrangements with terms of one year or more.
The price of the cloud-hosted and term-license software subscriptions is generally fixed at contract inception and therefore, the Company’s contracts do not contain a significant amount of variable consideration. As a result, the amount of revenue recognized in the periods presented from performance obligations satisfied (or partially satisfied) in previous periods due to changes in the transaction price was not material. The Company’s revenue excludes sales and other indirect taxes.
Deferred Revenue
The Company records contract liabilities to deferred revenue when amounts are invoiced in advance of performance. Deferred revenue consists of the unearned portion of customer billings. The Company’s payment terms generally provide for payment within 30 days of the invoice date. Amounts anticipated to be recognized within one year of the balance sheet date are recorded as deferred revenue, current; the remaining portion is recorded as deferred revenue, non-current in the consolidated balance sheets.
The Company applied the practical expedient in Topic 606 and did not evaluate contracts of one year or less for the existence of a significant financing component. For contracts with terms of more than a year, the Company has determined its contracts generally do not include a significant financing component as the majority relate to contracts that are billed annually in advance. The primary purpose of the Company’s invoicing terms is to provide customers with simplified and predictable ways of purchasing the Company’s cloud- hosted software subscription, not to receive financing from its customers or to provide customers with financing.
Deferred Contract Costs
Deferred contract costs consist of sales commissions earned by the Company’s sales force which are considered incremental and recoverable costs of obtaining a contract with a customer. The Company determined that sales commissions that are related to contract renewals are not commensurate with commissions earned on the initial contract. Accordingly, sales commissions for initial contracts are deferred and then amortized on a straight-line basis over a period of benefit that the Company has determined to be four years. The Company determined the period of benefit by taking into consideration its customer contracts, technology, and other factors. Amounts anticipated to be recognized within one year of the balance sheet date are recorded as deferred contract costs, current; the remaining portion is recorded as deferred contract costs, non-current in the consolidated balance sheets. Deferred contract costs are periodically reviewed for impairment. Amortization of deferred contract costs is included in sales and marketing expense in the consolidated statements of operations.
Cost of Revenue
Cost of revenue primarily consists of expenses related to providing the Company’s cloud- hosted software subscription to customers, including personnel expenses for operations and global support, payments to the Company’s third-party cloud infrastructure providers for hosting the Company’s software, payment processing fees, amortization of capitalized internal-use software costs, amortization of acquired developed technology, and allocated overhead costs for facilities, information technology, and other allocated overhead costs.
Accounts Receivable and Related Allowance
Accounts Receivable and Related Allowance for Credit Losses
Accounts receivable are recorded at the invoiced amount, net of allowances for credit losses. The allowance is based upon historical loss patterns, customer credit quality, the age of each past due invoice, and an evaluation of the potential risk of loss associated with delinquent accounts. The allowance also reflects current market conditions and reasonable and supportable forecasts of future economic conditions.
Concentrations of Risk and Significant Customers
Concentrations of Risk and Significant Customers
The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, available-for-sale investments, and accounts receivable. All of the Company’s cash equivalents and investments are invested in money market funds, United States (“U.S.”) Treasury securities, commercial paper, corporate debt securities, or U.S. Government agency securities that management believes to be of high credit quality. The Company’s cash, cash equivalents, and available-for-sale investments are spread across several different financial institutions.
Foreign Currency Remeasurement
Foreign Currency Translation
The functional currency for the large majority of the Company's foreign operations is the U.S. dollar, except for one subsidiary for which the local currency is the functional currency. When a consolidated entity’s functional currency is the local currency, the Company translates the foreign functional currency financial statements to U.S. dollars using the exchange rates at the balance sheet date for assets and liabilities, the period average exchange rates for revenue and expenses, and the historical exchange rates for equity. The effects of foreign currency translation adjustments are recorded in other comprehensive income as a component of stockholders’ equity and the related periodic movements are presented in the consolidated statements of comprehensive loss. Foreign currency transaction gains and losses are included in other income (expense), net, in the consolidated statements of operations for the period. Realized foreign currency transaction gains and losses for the fiscal years ended January 31, 2024, 2023, and 2022 were not material.
Cash and Cash Equivalents
Cash and Cash Equivalents
Cash and cash equivalents consist of cash on hand, highly liquid investments with original maturities of three months or less from the date of purchase, and money market funds.
Investments
Investments
The Company’s investments are classified as available-for-sale and consist of highly liquid investments, primarily commercial paper, corporate debt securities, U.S. Government agency securities, and U.S. Treasury securities. The Company determines the appropriate classification of its investments at the time of purchase and reevaluates such designation at each balance sheet date.
The Company periodically evaluates its short-term investments to assess whether those with unrealized loss positions are impaired. The Company considers various factors in determining whether to recognize an impairment charge, including the extent to which the fair value is less than the Company’s cost basis, the financial condition of the issuer and any changes thereto, and the Company’s intent to sell, or whether it is more likely than not that the Company will be required to sell, the investment before recovery of the investment’s amortized cost. If the Company determines that the investment is impaired, an impairment loss is recognized in earnings equal to the difference between the investment’s amortized cost and fair value at such date. Realized gains and losses are reported in other income, net, in the consolidated statements of operations. No impairment charges have been recognized to date.
Available-for-sale
The Company classifies its available-for-sale investments, including those with stated maturities beyond twelve months, as short-term based on their highly liquid nature and because they represent the investment of cash that is available for current operations. In addition, the Company may sell these investments at any time for use in its current operations or for other purposes, even prior to maturity. The Company's available-for-sale investments are recorded at fair market value each reporting period. Unrealized gains and losses on these available-for-sale investments are reported as a separate component of accumulated other comprehensive income in the accompanying consolidated balance sheet until realized.
Restricted Cash
Restricted Cash
The Company has classified cash that is not available for use in its operations as restricted cash. Restricted cash consists of collateral for letters of credit related to security deposits for the Company’s office facility lease arrangements.
Reclassifications
Reclassifications
Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations.
Property and Equipment, Net
Property and Equipment, Net
Property and equipment, net, are stated at cost less accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of the respective assets, which is generally three to five years. Leasehold improvements are depreciated over the shorter of the estimated useful lives of the assets or the lease term.
The Company periodically reviews the estimated lives of property and equipment. If the estimated useful life assumption is reduced for any asset, the remaining unamortized balance would be amortized or depreciated over the revised estimated useful life.
Research and Development Expense
Research and Development Expense
Research and development expenses consist primarily of personnel costs for the Company’s engineering, product, and design teams. Additionally, research and development expenses include contractor fees, depreciation of equipment used in research and development activities, acquisition-related expenses, and allocated overhead costs. Research and development costs are expensed as incurred.
Internal-Use Software Costs
Internal-Use Software Costs
The Company evaluates costs related to the development of its platform and certain projects for internal use incurred during the application development stage. Costs related to preliminary project activities and post-implementation activities are expensed as incurred and costs related to the application development stage are capitalized. Internal-use software is amortized on a straight-line basis over its estimated useful life, which is generally three years. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets.
Business Combinations
Business Combinations
The Company applies the acquisition method of accounting for business combinations. Under this method of accounting, all assets acquired and liabilities assumed are recorded at their respective fair values at the date of the acquisition. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and often involves the use of significant estimates and assumptions. These estimates can include, but are not limited to, the cash flows that an asset is expected to generate in the future, the appropriate weighted-average cost of capital, and the cost savings expected to be derived from acquiring an asset.
Goodwill and Acquired Intangible Assets
Goodwill. Goodwill represents the excess purchase consideration of an acquired business over the fair value of the net tangible and identifiable intangible assets. Goodwill is evaluated for impairment annually in the fourth quarter, and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. Triggering events that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate or a significant decrease in expected cash flows. No impairment charges were recorded during the fiscal years ended January 31, 2024, 2023, or 2022.
Acquired Intangible Assets. Acquired intangible assets consist of identifiable intangible assets, primarily developed technology and customer relationships, resulting from the Company’s business acquisition. Intangible assets are recorded at fair value on the date of acquisition and amortized over their estimated useful lives.
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets. The Company reviews long-lived assets, including property and equipment, lease right-of-use assets, capitalized internal-use software, and acquired intangible assets for impairment when events or changes in circumstances indicate that the carrying value of these assets may not be recoverable or that the useful lives are shorter than originally estimated. The evaluation is performed at the asset group level, which is the lowest level of identifiable cash flows independent of other assets. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets or asset groups are expected to generate. If the carrying value of the assets or asset group is not recoverable, the impairment recognized i s measured as the amount by which the carrying value exceeds its fair value. If the Company reduces the estimated useful life assumption for any asset, the remaining unamortized balance would be amortized or depreciated over the revised estimated useful life.
Advertising Costs
Advertising Costs
Advertising costs are expensed as incurred and are included in sales and marketing expense.
Stock-Based Compensation
Stock-Based Compensation
The Company recognizes compensation expense for all stock-based payment awards, including stock options, restricted stock units (“RSUs”) and performance and market stock units (“PSUs”), based on the estimated fair value of the award on the grant date.
The Company estimates the fair value of stock options issued to employees on the date of grant using the Black-Scholes option pricing model, which is impacted by the estimated fair value of the Company’s common stock, as well as certain assumptions including the expected volatility over the term of the option awards, the expected term of the awards, risk-free interest rates and the expected dividend yield. Assumptions and estimates used in the determination of the fair value of stock options include expected volatility, expected term, risk-free rate, and expected dividend yield.
The Company estimates the fair value of RSUs at its stock price on the grant date.
The Company estimates the fair value of PSUs with performance conditions using the fair value at the date of grant, and may be adjusted over the vesting period based on interim estimates of performance against the performance condition. The fair value for PSUs with market conditions is measured using a Monte Carlo simulation approach. Expense is recorded over the vesting period under the graded-vesting attribution method.
The Company estimates the fair value of shares to be issued under the employee stock purchase plan (the “ESPP”) on the first day of the offering period using the Black-Scholes valuation model, which is impacted by the estimated fair value of the Company’s common stock, as well as certain assumptions including the expected volatility over the term of the offering period, the expected term of the awards, risk-free interest rates and the expected dividend yield. Assumptions used in the determination of the fair value of the ESPP are the same as those used in the determination of the fair value of the Company’s stock options.
The Company generally recognizes compensation expense for employee stock-based payment awards on a straight-line basis over the period during which an award recipient is required to provide services in exchange for the award (generally the vesting period of the award), with the exception of PSUs which are recognized using the accelerated attribution method. The Company accounts for forfeitures as they occur.
The fair value of each non-employee stock option is estimated at the date of grant using the Black-Scholes option pricing model and is not remeasured over the vesting term. Assumptions used in valuing non-employee stock options are generally consistent with those used for employee stock options with the exception that the expected term is over the contractual life.
Income Taxes
Income Taxes
The Company accounts for income taxes using the asset and liability method. Under this method, the Company recognizes deferred income tax assets and liabilities for the expected future consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as for net operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. The Company recognizes the deferred income tax effects of a change in tax rates in the period of enactment.
The Company records a valuation allowance to reduce its deferred tax assets to the net amount that it believes is more likely than not to be realized. The Company considers all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income and ongoing tax planning strategies in assessing the need for a valuation allowance. Realization of its deferred tax assets is dependent primarily upon future U.S. taxable income.
The Company recognizes income tax benefits from uncertain tax positions only if it believes that it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such uncertain tax positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. Although the Company believes that it has adequately reserved for its uncertain tax positions (including net interest and penalties), it can provide no assurance that the final tax outcome of these matters will not be materially different. The Company makes adjustments to these reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made and could have a material impact on its financial position, results of operations, and cash flows.
Net Loss Per Common Share
Net Loss Per Share
Basic net loss per share is computed by dividing net loss attributable to PagerDuty Inc. common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period giving effect to all potentially dilutive securities to the extent they are dilutive. Diluted earnings per share attributable to common stockholders adjusts basic earnings per share for the potentially dilutive impact of stock-based awards as computed under the treasury stock method and convertible notes as computed under the if-converted method. Basic and diluted net loss per share of common stock were the same for each period presented as the inclusion of all potential shares of common stock outstanding would have been anti-dilutive.
Recently Issued/Adopted Accounting Pronouncements
Recent Accounting Pronouncements Not Yet Adopted
In December 2023, the FASB issued Accounting Standard Update (“ASU”) No. 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. This ASU is effective for fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.
In November 2023, the FASB issued ASU No. 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This ASU expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements under ASU 2023-07 are also required for public entities with a single reportable segment. This ASU is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024 and requires retrospective application to all prior periods. The Company does not expect the adoption of this ASU to have a material impact on its 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—Valuations based on observable inputs that reflect quoted prices for identical assets or liabilities in active markets.
Level 2—Valuations based on inputs that are directly or indirectly observable in the marketplace.
Level 3—Valuations based on unobservable inputs that are supported by little or no market activity.
Operating Leases
Operating Leases
The Company has entered into various non-cancellable operating leases for its office spaces with lease periods expiring between fiscal 2026 and fiscal 2029. The operating lease agreements generally provide for rental payments on a graduated basis and for options to renew, which could increase future minimum lease payments if exercised.
Lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present
value of lease payments. The lease right-of-use assets also include any lease payments made and exclude lease incentives such as tenant improvement allowances.
The operating leases typically include non-lease components such as common-area maintenance costs. The Company has elected to include non-lease components with lease payments for the purpose of calculating lease right-of-use assets and liabilities, to the extent that they are fixed. Non-lease components that are not fixed are expensed as incurred as variable lease payments.
Leases with a term of one year or less are not recognized on the consolidated balance sheets. The Company recognizes lease expense for these leases on a straight-line basis over the lease term.
v3.24.0.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Jan. 31, 2024
Accounting Policies [Abstract]  
Activity Related to Allowance for Doubtful Accounts
Activity related to the Company’s allowance for credit losses on accounts receivable was as follows:
Amount
(in thousands)
Balance as of January 31, 2022$1,809 
Charged to bad debt expense1,063 
Write-offs, net of recoveries(858)
Balance as of January 31, 2023$2,014 
Charged to bad debt expense1,382 
Write-offs, net of recoveries(2,014)
Balance as of January 31, 2024$1,382 
Rollforward of Deferred Contract Costs
Amount
(in thousands)
Balance as of January 31, 2022$42,831 
Additions to deferred contract costs22,805 
Amortization of deferred contract costs(19,247)
Balance as of January 31, 2023$46,389 
Additions to deferred contract costs18,799 
Amortization of deferred contract costs(20,568)
Balance as of January 31, 2024$44,620 
v3.24.0.1
Redeemable Non-Controlling Interest (Tables)
 12 Months Ended
Jan. 31, 2024
Noncontrolling Interest [Abstract]  
Redeemable Noncontrolling Interest
The following table summarizes the activity in the redeemable non-controlling interest for the period indicated below:
January 31,
20242023
(in thousands)
Balance at beginning of period$1,108 $— 
Investment by redeemable non-controlling interest1,781 1,908 
Net loss attributable to redeemable non-controlling interest(2,178)(802)
Adjustments to redeemable non-controlling interest6,568 — 
Foreign currency translation adjustments14 2 
Balance at end of period$7,293 $1,108 
v3.24.0.1
Balance Sheet Components (Tables)
 12 Months Ended
Jan. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Components of Cash and Cash Equivalents
Cash, cash equivalents, and investments consisted of the following:
As of January 31,
20242023
(in thousands)
Cash and cash equivalents
Cash
$55,736 $67,151 
Money market funds
305,283 206,868 
Commercial paper994 — 
U.S. Treasury securities
998 — 
Total cash and cash equivalents$363,011 $274,019 
Available-for-sale investments
U.S. Treasury securities
$50,036 $51,387 
Commercial paper
2,886 34,798 
Corporate debt securities
131,259 108,827 
U.S. Government agency securities23,997 7,936 
Total available-for-sale investments$208,178 $202,948 
Components of Available-for-sale Investments
Cash, cash equivalents, and investments consisted of the following:
As of January 31,
20242023
(in thousands)
Cash and cash equivalents
Cash
$55,736 $67,151 
Money market funds
305,283 206,868 
Commercial paper994 — 
U.S. Treasury securities
998 — 
Total cash and cash equivalents$363,011 $274,019 
Available-for-sale investments
U.S. Treasury securities
$50,036 $51,387 
Commercial paper
2,886 34,798 
Corporate debt securities
131,259 108,827 
U.S. Government agency securities23,997 7,936 
Total available-for-sale investments$208,178 $202,948 
Summary of Carrying Value of Available-for-sale Investments
The following tables summarize the Company’s investments’ adjusted cost, net unrealized (losses) gains, and fair value by significant investment category as of January 31, 2024 and 2023. Gross realized gains or losses from sales of available-for-sale securities were not material for the fiscal years ended January 31, 2024 and 2023.    
As of January 31, 2024
Cost BasisUnrealized Gain (Loss), NetEstimated Fair Value
(in thousands)
Available-for-sale investments
U.S. Treasury securities $50,012 $24 $50,036 
Commercial paper2,887 (1)2,886 
Corporate debt securities131,395 (136)131,259 
U.S. Government agency securities23,983 14 23,997 
Total available-for-sale investments$208,277 $(99)$208,178 
As of January 31, 2023
Cost BasisUnrealized Loss, NetEstimated Fair Value
(in thousands)
Available-for-sale investments
U.S. Treasury securities $51,400 $(13)$51,387 
Commercial paper34,926 (128)34,798 
Corporate debt securities110,063 (1,236)108,827 
U.S. Government agency securities8,000 (64)7,936 
Total available-for-sale investments$204,389 $(1,441)$202,948 
Summary of Contractual Maturities of Available-for-sale Securities
The following tables present the Company’s available-for-sale securities by contractual maturity date as of January 31, 2024 and 2023:
As of January 31, 2024
Cost BasisRecorded Basis
(in thousands)
Due within one year$155,423 $155,158 
Due between one to five years52,854 53,020 
Total$208,277 $208,178 
January 31, 2023
Cost BasisRecorded Basis
(in thousands)
Due within one year$139,443 $138,625 
Due between one to five years64,946 64,323 
Total$204,389 $202,948 
Components of Property and Equipment, Net
Property and equipment, net consisted of the following:
As of January 31,
20242023
(in thousands)
Leasehold improvements$11,334 $15,585 
Computers and equipment9,135 9,426 
Furniture and fixtures3,989 4,730 
Capitalized internal-use software18,257 10,971 
Gross property and equipment (1)
$42,715 $40,712 
Accumulated depreciation and amortization (2)
(25,083)(22,322)
Property and equipment, net$17,632 $18,390 
______________
(1) Gross property and equipment includes construction-in-progress for leasehold improvements and capitalized internal-use software of $4.2 million and $6.0 million that had not yet been placed in service as of January 31, 2024 and January 31, 2023, respectively. The costs associated with construction-in-progress are not amortized until the asset is available for its intended use.
(2) In the year ended January 31, 2024, the Company recorded impairment charges of $2.3 million, of which $1.9 million related to the Atlanta office described in more detail in Note 16 “Restructuring” and $0.4 million related to leasehold improvements impaired in the period. The impairment charge was recorded in general and administrative expenses on the consolidated statement of operations. In the year ended January 31, 2023, the Company recorded an impairment charge of $0.7 million on its capitalized internal-use software included in construction-in-progress. It was determined that the developed technology would not be placed in service as the technology was replaced with the acquired technology of Catalytic.
Schedule of Accrued Expenses, Other Current Liabilities, and Accrued Compensation
Accrued expenses and other current liabilities consisted of the following:
As of January 31,
20242023
(in thousands)
Accrued professional fees$4,483 $4,926 
Accrued events1,773 952 
Accrued hosting and infrastructure1,843 1,384 
Accrued taxes1,007 1,711 
Accrued liabilities, other6,366 2,831 
Accrued expenses and other liabilities$15,472 $11,804 
Accrued compensation consisted of the following:
As of January 31,
20242023
(in thousands)
Accrued bonuses$7,568 $15,594 
Accrued paid time off9,466 7,655 
Accrued compensation, other13,205 18,585 
Accrued compensation$30,239 $41,834 
v3.24.0.1
Fair Value Measurements (Tables)
 12 Months Ended
Jan. 31, 2024
Fair Value Disclosures [Abstract]  
Summary of Information about Company's Financial Assets
The following tables present information about the Company’s financial assets that are required to be measured or disclosed at fair value using the above input categories:
As of January 31, 2024
Level 1Level 2Level 3Total
(in thousands)
Money market funds$305,283 $— $305,283 
U.S. Treasury securities— 51,034 — 51,034 
Commercial paper— 3,880 — 3,880 
Corporate debt securities— 131,259 — 131,259 
U.S. Government agency securities— 23,997 — 23,997 
Total$305,283 $210,170 $— $515,453 
Included in cash equivalents$307,275 
Included in investments$208,178 
As of January 31, 2023
Level 1Level 2Level 3Total
(in thousands)
Money market funds$206,868 $— $— $206,868 
U.S. Treasury securities— 51,387 — 51,387 
Commercial paper— 34,798 — 34,798 
Corporate debt securities— 108,827 — 108,827 
U.S. Government agency securities— 7,936 — 7,936 
Total$206,868 $202,948 $— $409,816 
Included in cash equivalents$206,868 
Included in investments$202,948 
v3.24.0.1
Business Combinations (Tables)
 12 Months Ended
Jan. 31, 2024
Business Combination and Asset Acquisition [Abstract]  
Schedule of Purchase Price Components
The purchase price consisted of the following:
(in thousands)
Cash$29,194 
Fair value of replacement stock options attributable to pre-combination service494 
Total purchase consideration$29,688 
Schedule of Allocation of Purchase Consideration
The following table presents the fair values of acquired assets and liabilities recorded in the Company’s consolidated balance sheet as of the acquisition date:
(in thousands)
Cash$5,123 
Accounts receivable384 
Prepaid expenses and other current assets101 
Intangible assets6,900 
Goodwill18,539 
Accrued expenses and other current liabilities(99)
Deferred revenue(1,094)
Other liabilities(30)
Deferred tax liability(136)
Total purchase consideration$29,688 
The following table presents the fair values of acquired assets and liabilities recorded in the Company’s consolidated balance sheet as of the acquisition date:
(in thousands)
Cash and cash equivalents$2,506 
Accounts receivable and other assets801 
Prepaid expenses and other current assets841 
Intangible assets21,800 
Goodwill46,736 
Accounts payable and other liabilities(408)
Deferred revenue(856)
Other tax liabilities(1,322)
Deferred tax liability(1,330)
Total purchase consideration$68,768 
Schedule of Components of Identifiable Intangible Assets Acquired
The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition:
Fair ValueUseful Life
(in thousands)(in years)
Developed technology$6,400 5
Customer relationships400 10
Trademarks100 2
Total intangible assets$6,900 
The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition:
Fair ValueUseful Life
(in thousands)(in years)
Developed technology$19,200 3
Customer relationships2,600 10
Total intangible assets$21,800 
v3.24.0.1
Goodwill and Acquired Intangible Assets (Tables)
 12 Months Ended
Jan. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Changes in Goodwill
The changes in the carrying amount of goodwill for the fiscal years ended January 31, 2024 and 2023 are as follows:
Goodwill
(in thousands)
Balance as of January 31, 2022
$72,126 
Goodwill resulting from business combination46,736 
Balance as of January 31, 2023
$118,862 
Goodwill resulting from business combination18,539 
Balance as of January 31, 2024
$137,401 
Schedule of Intangible Assets Subject to Amortization
Intangible assets subject to amortization consist of the following:
As of January 31, 2024
CostAccumulated AmortizationNetWeighted Average
Remaining Useful Life
(in thousands)(in years)
Customer relationships$24,800 $(7,768)$17,032 6.9
Developed technology31,200 (16,128)15,072 2.7
Trademarks500 (410)90 1.8
Assembled workforce2,527 (2,105)422 0.3
Other intangibles, net$59,027 $(26,411)$32,616 
As of January 31, 2023
CostAccumulated AmortizationNetWeighted Average
Remaining Useful Life
(in thousands)(in years)
Customer relationships$24,400 $(5,319)$19,081 7.9
Developed technology24,800 (8,342)16,458 2.3
Trademarks400 (400)— 0.0
Assembled workforce2,527 (842)1,685 1.3
Other intangibles, net$52,127 $(14,903)$37,224 
Schedule of Expected Amortization Expense in Future Periods
As of January 31, 2024, expected amortization expense in future periods is as follows:
Year ending January 31,
(in thousands)
2025$11,751 
20265,217 
20273,760 
20283,760 
20293,493 
Thereafter4,635 
Total expected future amortization expense    $32,616 
v3.24.0.1
Leases (Tables)
 12 Months Ended
Jan. 31, 2024
Leases [Abstract]  
Information About Lease on Condensed Consolidated Balance Sheet
The following table presents information about leases on the consolidated balance sheets.
As of January 31,
20242023
(in thousands)
Assets
Lease right-of-use assets$3,789 $13,982 
Liabilities
Lease liabilities6,180 5,904 
Lease liabilities, non-current6,809 12,704 
In the year ended January 31, 2024, the Company recorded impairment charges related to the lease right-of-use assets of $6.1 million, of which $5.3 million related to the Atlanta office and $0.8 million related to a separate right-of-use asset and liability associated with the San Francisco office sublease, which is the amount by which the carrying value of the right-of-use asset exceeded its estimated fair value. The estimated fair value of the subleased office was based on the present value of the estimated cash flows that could be generated from subleasing the property for the remaining lease term. The impairment charges were recorded in general and administrative expenses on the Company’s consolidated statements of operations.
There were no impairment charges recorded in the years ended January 31, 2023 and 2022.
Information About Leases on Condensed Consolidated Statement of Operations and Supplemental Cash Flow Information
The following table presents information about leases on the consolidated statements of operations.
Year Ended January 31,
202420232022
(in thousands)
Operating lease expense$4,736 $5,651 $5,574 
Short-term lease expense1,856 1,842 756 
Variable lease expense1,149 1,363 939 
The following table presents supplemental cash flow information about the Company’s leases.
Year Ended January 31,
202420232022
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities$6,557 $7,025 $6,319 
Schedule of Remaining Maturities of Lease Liabilities
As of January 31, 2024, remaining maturities of lease liabilities are as follows:
Year ending January 31,
(in thousands)
2025$6,554 
20262,384 
20271,910 
20281,967 
20291,011 
Gross lease payments$13,826 
Less: Imputed interest(837)
Total$12,989 
v3.24.0.1
Debt and Financing Arrangements (Tables)
 12 Months Ended
Jan. 31, 2024
Debt Disclosure [Abstract]  
Net Carrying Amount of Liability and Equity Components of Convertible Notes
The net carrying amount of the Notes as of January 31, 2024 and 2023 was as follows:
As of January 31, 2024As of January 31, 2023
(in thousands)
2025 Notes2028 NotesTotal2025 Notes
Principal$57,500 $402,500 $460,000 $287,500 
Less: unamortized issuance costs(597)(11,373)(11,970)(4,592)
Net carrying amount$56,903 $391,127 $448,030 $282,908 
Interest expense recognized related to the Notes during the year ended January 31, 2024, 2023, and 2022 is as follows:
Year Ended January 31,
202420232022
(in thousands)
Contractual interest expense$4,422 $3,594 $3,594 
Amortization of debt issuance costs2,078 1,839 1,804 
Total interest expense related to the Notes$6,500 $5,433 $5,398 
v3.24.0.1
Commitment and Contingencies (Tables)
 12 Months Ended
Jan. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Contractual Obligation, Fiscal Year Maturity he Company’s contractual obligations are as follows for the years ending January 31:
Purchase Commitments(1)
Senior Convertible Notes(2)
Total
Year ending January 31,
2025$34,697 $6,643 $41,340 
20262,499 63,820 66,319 
20271,556 6,021 7,577 
2028790 6,021 6,811 
2029264 407,011 407,275 
Thereafter— — — 
Total$39,806 $489,516 $529,322 
(1) Primarily relates to contractual third-party services.
(2) Includes principal and interest payments. For more information regarding the Company’s convertible senior notes, refer to Note 9, “Debt and Financing Arrangements”.
v3.24.0.1
Deferred Revenue and Performance Obligations (Tables)
 12 Months Ended
Jan. 31, 2024
Revenue from Contract with Customer [Abstract]  
Summary of Deferred Revenue
The following table presents the changes to the Company’s deferred revenue:
Year Ended January 31,
202420232022
(in thousands)
Deferred revenue, beginning of period$209,051 $170,224 $129,972 
Billings448,715 408,764 321,648 
Deferred revenue assumed in business combinations1,094 856 — 
Revenue recognized(430,699)(370,793)(281,396)
Deferred revenue, end of period$228,161 $209,051 $170,224 
v3.24.0.1
Common Stock and Stockholders' Equity (Tables)
 12 Months Ended
Jan. 31, 2024
Equity [Abstract]  
Summary of Shares of Common Stock Reserved for Future Issuance
Shares of common stock reserved for future issuance are as follows:
January 31, 2024
Outstanding stock options and unvested RSUs and PSUs13,362,015 
Available for future stock option, RSU, and PSU grants17,178,454 
Available for ESPP3,346,858 
Total common stock reserved at January 31, 202433,887,327 
Schedule of Stock Option Activity
Stock option activity is as follows:
Number of
Shares
Weighted
Average Exercise
Price
Weighted
Average
Remaining
Contractual Term
Aggregate
Intrinsic Value
(in thousands)
Outstanding at January 31, 20236,150,981 $10.61 5.3$117,986 
Granted61,719 $13.00 
Exercised(1,160,809)$8.13 
Canceled(176,866)$36.41 
Outstanding at January 31, 20244,875,025 $10.29 4.4$68,151 
Vested as of January 31, 20244,693,573 $9.73 4.3$67,142 
Schedule of Assumptions Used to Calculate Fair Value of Employee Stock Option Grants Made The following assumptions were used to calculate the fair value of employee stock option grants made during the periods:
Year Ended January 31,
202420232022
Expected dividend yield— — — 
Expected volatility55.0 %47.1 %
43.8% - 46.9%
Expected term (years)5.26.16.1
Risk-free interest rate
4.50% - 4.60%
2.50 %
1.04% - 1.35%
Schedule of Restricted Stock Unit Activity
A summary of the Company’s RSU activity and related information is as follows:
Number of RSUs
Weighted
Average Grant Date Fair Value Per Share
Outstanding at January 31, 20238,012,482 $32.55 
Granted4,645,217 $30.21 
Vested(2,170,707)$32.12 
Forfeited or canceled(3,074,936)$33.24 
Outstanding at January 31, 20247,412,056 $31.08 
Schedule of Assumptions Used to Calculate Fair Value of Shares to be Granted Under the ESPP
The following assumptions were used to calculate the fair value of shares to be granted under the ESPP during the periods:
Year Ended January 31,
202420232022
Expected dividend yield— — — 
Expected volatility
35.8% - 60.1%
44.1% - 65.6%
41.2% - 53.9%
Expected term (years)
0.5 - 2.0
0.5 - 2.0
0.5 - 2.0
Risk-free interest rate
0.69% - 5.29%
0.11% - 4.62%
0.05% - 1.64%
Schedule of Stock-based Compensation Expense
Stock-based compensation expense included in the Company’s consolidated statements of operations is as follows:
Year Ended January 31,
202420232022
(in thousands)
Cost of revenue$7,586 $6,827 $3,751 
Research and development44,800 39,012 23,764 
Sales and marketing30,345 29,804 19,012 
General and administrative44,421 34,264 23,506 
Total$127,152 $109,907 $70,033 
Share-based Payment Arrangement, Performance Shares, Activity
A summary of the Company’s PSU activity and related information is as follows:
Number of PSUs
Weighted
Average Grant Date Fair Value Per Share
Outstanding at January 31, 2023825,058 $33.27 
Granted(1)
594,290 $34.98 
Vested(21,849)$41.17 
Forfeited or canceled(156,524)$35.84 
Performance adjustment for 2022 PSU Awards(698,983)$29.22 
Outstanding at January 31, 2024541,992 $35.08 
(1)This amount represents awards granted at 100% attainment.
v3.24.0.1
Net Loss per Share (Tables)
 12 Months Ended
Jan. 31, 2024
Earnings Per Share [Abstract]  
Calculation of Basic and Diluted Net Loss Per Share
The following table presents the calculation of basic and diluted net loss per share attributable to PagerDuty, Inc. common stockholders:
Year Ended January 31,
202420232022
(in thousands, except per share data)
Numerator:
Net loss attributable to PagerDuty, Inc.$(75,189)$(128,423)$(107,455)
Adjustment attributable to redeemable non-controlling interest6,568 — — 
Net loss attributable to PagerDuty, Inc. common stockholders(81,757)(128,423)(107,455)
Denominator:
Weighted average shares used in calculating net loss per share, basic and diluted
92,341 88,721 84,514 
Net loss per share, basic and diluted, attributable to PagerDuty, Inc. common stockholders$(0.89)$(1.45)$(1.27)
Schedule of Anti-dilutive Securities That Were Not Included in Diluted Per Share Calculations Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows:
As of January 31,
202420232022
(in thousands)
Shares subject to outstanding common stock awards12,829 14,989 14,522 
Shares issuable pursuant to the 2019 ESPP105 106 71 
Restricted stock issued to acquire key personnel25 63 122 
v3.24.0.1
Income Taxes (Tables)
 12 Months Ended
Jan. 31, 2024
Income Tax Disclosure [Abstract]  
Components of Income (Loss) Before Income Taxes
The components of income (loss) before income taxes are as follows:
Year Ended January 31,
202420232022
(in thousands)
Domestic$(75,375)$(130,971)$(111,426)
Foreign(2,004)907 4,506 
Loss before provision (benefit from) for income taxes$(77,379)$(130,064)$(106,920)
Components of Provision for Income Taxes
The components of the provision (benefit from) for income tax are as follows:
Year Ended January 31,
202420232022
(in thousands)
Current
Federal$— $— $— 
State117 — — 
Foreign466 267 181 
Total current tax expense$583 $267 $181 
Deferred
Federal$(97)$(794)$— 
State(39)(536)— 
Foreign(459)224 354 
Total deferred tax expense (benefit) $(595)$(1,106)$354 
Provision (benefit from) for income taxes$(12)$(839)$535 
Reconciliation of Provision for Income Taxes
A reconciliation of the Company’s recorded provision (benefit from) for income tax to the amount of taxes computed at the U.S. statutory rate is as follows:
Year Ended January 31,
202420232022
(in thousands)
Income taxes computed at U.S. federal statutory rate$(16,249)$(27,313)$(22,453)
State taxes, net of federal benefit(2,029)(5,044)(8,652)
Stock-based compensation8,695 554 (15,423)
Foreign rate differential428 300 (411)
Tax credits, net of FIN48 reserves(1,956)(1,789)(1,426)
Change in valuation allowance10,169 31,350 48,364 
Other930 1,103 536 
(Benefit from) provision for income taxes$(12)$(839)$535 
Significant Components of Deferred Tax Assets and Liabilities Significant components of the Company’s deferred tax assets and liabilities are as follows:
As of January 31,
20242023
(in thousands)
Deferred tax assets:
Net operating losses$122,343 $117,735 
Capitalized research and development34,757 25,568 
Allowances and accruals7,374 10,154 
Stock-based compensation11,096 11,549 
Charitable contributions3,983 3,997 
Tax credits14,704 12,105 
Lease liabilities3,262 4,659 
Other1,311 1,519 
Gross deferred tax assets$198,830 $187,286 
Less: valuation allowance(177,078)(162,865)
Net deferred tax assets$21,752 $24,421 
Deferred tax liabilities:
Deferred commissions$(11,565)$(12,089)
Intangible assets(11,357)(11,544)
Lease assets(958)(3,497)
Other(448)(324)
Gross deferred tax liabilities$(24,328)$(27,454)
Net deferred tax liabilities$(2,576)$(3,033)
Summary of Activity Related to Unrecognized Tax Benefits
The following table summarizes the activity related to the Company’s unrecognized tax benefits:
Year Ended January 31,
202420232022
(in thousands)
Balance at beginning of period$7,723 $6,190 $5,018 
Additions related to prior years 110 85 86 
Reductions related to prior years (192)(18)(70)
Additions related to current year 1,424 1,304 1,156 
Additions related to acquired positions— 162 — 
Balance at end of period$9,065 $7,723 $6,190 
v3.24.0.1
Geographic Information (Tables)
 12 Months Ended
Jan. 31, 2024
Segment Reporting [Abstract]  
Disaggregation of Revenue By Geographic Location
Revenue by location is generally determined by the billing address of the customer. The following table sets forth revenue by geographic area:
Year Ended January 31,
202420232022
(in thousands)
United States$312,165 $283,266 $212,829 
International118,534 87,527 68,567 
Total$430,699 $370,793 $281,396 
v3.24.0.1
Summary of Significant Accounting Policies - Narrative (Details)
 12 Months Ended
Jan. 31, 2024
USD ($)
performanceObligation
segment
Jan. 31, 2023
USD ($)
Jan. 31, 2022
USD ($)
Oct. 13, 2023
USD ($)
Jan. 31, 2021
USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Number of operating segments | segment 1        
Number of performance obligations | performanceObligation 2        
Allowance for doubtful accounts $ 1,382,000 $ 2,014,000 $ 1,809,000    
Payment terms, period post invoice date (in days) 30 days        
Amortization period for sales commissions for initial contracts that are deferred (in years) 4 years        
Deferred contract costs $ 44,620,000 46,389,000 42,831,000    
Amortization of deferred contract costs 20,568,000 19,247,000 14,923,000    
Impairment loss in relation to costs capitalized 0 0 0    
Restricted cash in other long-term assets 3,656,000 0 0    
Accounts receivable 100,413,000 91,345,000      
Capitalized internal-use software costs 7,300,000 4,800,000 4,700,000    
Impairment on goodwill and intangible assets 0 0 0    
Advertising costs 9,700,000 7,300,000 10,600,000    
Convertible senior notes, net 448,030,000 282,908,000      
Accumulated deficit (171,600,000) (240,978,000) (266,975,000)   $ (366,727,000)
Impairment loss recorded 0        
Additional Paid-in Capital          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Accumulated deficit (774,768,000) (719,816,000) (616,467,000)   (614,494,000)
Accumulated Deficit          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Accumulated deficit 552,435,000 477,246,000 348,823,000   $ 248,110,000
Convertible Senior Notes          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Aggregate principal amount of debt issued       $ 402,500,000  
Director          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Revenues 3,300,000 1,300,000 2,500,000    
Accounts receivable 3,800,000 1,800,000 2,200,000    
Cash disbursements $ 0 $ 0 $ 0    
Internal-Use Software Costs          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Estimated useful lives of respective property and equipment assets (in years) 3 years        
Minimum          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Estimated useful lives of respective property and equipment assets (in years) 3 years        
Maximum          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Estimated useful lives of respective property and equipment assets (in years) 5 years        
v3.24.0.1
Summary of Significant Accounting Policies - Activity Related to Allowance for Doubtful Accounts (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2024
Jan. 31, 2023
Accounts Receivable, Allowance for Credit Loss [Roll Forward]    
Balance as of beginning of period $ 2,014 $ 1,809
Charged to bad debt expense (1,382) 1,063
Write-offs, net of recoveries (2,014) (858)
Balance as of end of period $ 1,382 $ 2,014
v3.24.0.1
Summary of Significant Accounting Policies - Rollforward of Deferred Contract Costs (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2024
Jan. 31, 2023
Jan. 31, 2022
Increase (Decrease) in Capitalized Contract Costs [Roll Forward]      
Balance as of beginning of period $ 46,389 $ 42,831  
Additions to deferred contract costs 18,799 22,805  
Amortization of deferred contract costs (20,568) (19,247) $ (14,923)
Balance as of end of period $ 44,620 $ 46,389 $ 42,831
v3.24.0.1
Redeemable Non-Controlling Interest - Narrative (Details) - USD ($)
$ in Thousands
 1 Months Ended 12 Months Ended
May 31, 2022
Jan. 31, 2024
Jan. 31, 2023
Noncontrolling Interest [Line Items]      
Adjustment to redeemable non-controlling interest   $ 6,568 $ 0
Variable Interest Entity, Primary Beneficiary      
Noncontrolling Interest [Line Items]      
Ownership percentage 51.00%    
v3.24.0.1
Redeemable Non-Controlling Interest - Summary of Activity (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2024
Jan. 31, 2023
Jan. 31, 2022
Redeemable Non-Controlling Interest [Roll Forward]      
Balance at beginning of period $ 1,108 $ 0  
Investment by redeemable non-controlling interest 1,781 1,908  
Net loss attributable to redeemable non-controlling interest (2,178) (802) $ 0
Adjustment to redeemable non-controlling interest 6,568 0  
Foreign currency translation adjustments 14 2 0
Balance at end of period $ 7,293 $ 1,108 $ 0
v3.24.0.1
Balance Sheet Components - Components of Cash and Cash Equivalents and Investments (Details) - USD ($)
$ in Thousands
Jan. 31, 2024
Jan. 31, 2023
Jan. 31, 2022
Cash and cash equivalents      
Cash $ 55,736 $ 67,151  
Money market funds 305,283 206,868  
Commercial paper 994 0  
U.S. Treasury securities 998 0  
Total cash and cash equivalents 363,011 274,019 $ 349,785
Available-for-sale investments      
Total available-for-sale investments 208,178 202,948  
U.S. Treasury securities      
Available-for-sale investments      
Total available-for-sale investments 50,036 51,387  
Commercial paper      
Available-for-sale investments      
Total available-for-sale investments 2,886 34,798  
Corporate debt securities      
Available-for-sale investments      
Total available-for-sale investments 131,259 108,827  
U.S. Government agency securities      
Available-for-sale investments      
Total available-for-sale investments $ 23,997 $ 7,936  
v3.24.0.1
Balance Sheet Components - Carrying Value of Investments (Details) - USD ($)
$ in Thousands
Jan. 31, 2024
Jan. 31, 2023
Available-for-sale investments    
Cost Basis $ 208,277 $ 204,389
Unrealized Loss, Net (99) (1,441)
Estimated Fair Value 208,178 202,948
U.S. Treasury securities    
Available-for-sale investments    
Cost Basis 50,012 51,400
Unrealized Loss, Net 24 (13)
Estimated Fair Value 50,036 51,387
Commercial paper    
Available-for-sale investments    
Cost Basis 2,887 34,926
Unrealized Loss, Net (1) (128)
Estimated Fair Value 2,886 34,798
Corporate debt securities    
Available-for-sale investments    
Cost Basis 131,395 110,063
Unrealized Loss, Net (136) (1,236)
Estimated Fair Value 131,259 108,827
U.S. Government agency securities    
Available-for-sale investments    
Cost Basis 23,983 8,000
Unrealized Loss, Net 14 (64)
Estimated Fair Value $ 23,997 $ 7,936
v3.24.0.1
Balance Sheet Components - Contractual Maturity (Details) - USD ($)
$ in Thousands
Jan. 31, 2024
Jan. 31, 2023
Cost Basis    
Due within one year $ 155,423 $ 139,443
Due between one to five years 52,854 64,946
Cost Basis 208,277 204,389
Recorded Basis    
Due within one year 155,158 138,625
Due between one to five years 53,020 64,323
Recorded Basis $ 208,178 $ 202,948
v3.24.0.1
Balance Sheet Components - Additional Information (Details)
 12 Months Ended
Jan. 31, 2024
USD ($)
day
security
Jan. 31, 2023
USD ($)
security
Jan. 31, 2022
USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Securities in an unrealized loss position | security 70 81  
Securities in unrealized loss position $ 108,700,000 $ 174,100,000  
Securities in a continuous net loss position for 12 months or longer 33 21  
Securities in continuous unrealized loss position for more than 12 months $ 200,000 $ 700,000  
Total unrealized loss on available-for-sale securities (99,000) (1,441,000)  
Impairment loss recorded 0    
Depreciation and amortization 8,200,000 6,800,000 $ 4,600,000
Capitalized internal-use software $ 13,100,000 $ 8,800,000  
v3.24.0.1
Balance Sheet Components - Property and Equipment, Net (Details) - USD ($)
$ in Thousands
 1 Months Ended 12 Months Ended
Jan. 31, 2024
Jul. 31, 2023
Jan. 31, 2024
Jan. 31, 2023
Jan. 31, 2022
Property, Plant and Equipment [Line Items]          
Gross property and equipment $ 42,715   $ 42,715 $ 40,712  
Accumulated depreciation and amortization (2) (25,083)   (25,083) (22,322)  
Property and equipment, net 17,632   17,632 18,390  
Impairment of leasehold 1,900   2,300    
Impairment of property and equipment, net and lease right-of-use assets, net 7,200 $ 1,200 8,368 0 $ 0
Leasehold improvements          
Property, Plant and Equipment [Line Items]          
Gross property and equipment 11,334   11,334 15,585  
Impairment of leasehold   $ 400      
Computers and equipment          
Property, Plant and Equipment [Line Items]          
Gross property and equipment 9,135   9,135 9,426  
Furniture and fixtures          
Property, Plant and Equipment [Line Items]          
Gross property and equipment 3,989   3,989 4,730  
Capitalized internal-use software          
Property, Plant and Equipment [Line Items]          
Gross property and equipment 18,257   18,257 10,971  
Impairment of property and equipment, net and lease right-of-use assets, net       700  
Construction-in-progress          
Property, Plant and Equipment [Line Items]          
Gross property and equipment $ 4,200   $ 4,200 $ 6,000  
v3.24.0.1
Balance Sheet Components Balance Sheet Components - Components of Accrued Expenses and Other Current Liabilities (Details) - USD ($)
$ in Thousands
Jan. 31, 2024
Jan. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Accrued professional fees $ 4,483 $ 4,926
Accrued events 1,773 952
Accrued hosting and infrastructure 1,843 1,384
Accrued taxes 1,007 1,711
Accrued liabilities, other 6,366 2,831
Accrued expenses and other liabilities $ 15,472 $ 11,804
v3.24.0.1
Balance Sheet Components Balance Sheet Components - Components of Accrued Compensation (Details) - USD ($)
$ in Thousands
Jan. 31, 2024
Jan. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Accrued bonuses $ 7,568 $ 15,594
Accrued paid time off 9,466 7,655
Accrued compensation, other 13,205 18,585
Accrued compensation $ 30,239 $ 41,834
v3.24.0.1
Fair Value Measurements (Details) - USD ($)
$ in Thousands
Jan. 31, 2024
Oct. 13, 2023
Jan. 31, 2023
Jun. 25, 2020
Convertible Senior Notes        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Stated interest rate   1.50%   1.25%
2025 Notes | Convertible Senior Notes        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Stated interest rate 1.25%      
2028 Notes | Convertible Senior Notes        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Stated interest rate 1.50%      
Recurring        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Money market funds $ 307,275   $ 206,868  
Investments 208,178   202,948  
Total 515,453   409,816  
Recurring | U.S. Treasury securities        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Investments 51,034   51,387  
Recurring | Commercial paper        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Investments 3,880   34,798  
Recurring | Corporate debt securities        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Investments 131,259   108,827  
Recurring | U.S. Government agency securities        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Investments 23,997   7,936  
Recurring | Money market funds        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Money market funds 305,283   206,868  
Recurring | Level 1        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Total 305,283   206,868  
Recurring | Level 1 | U.S. Treasury securities        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Investments 0   0  
Recurring | Level 1 | Commercial paper        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Investments 0   0  
Recurring | Level 1 | Corporate debt securities        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Investments 0   0  
Recurring | Level 1 | U.S. Government agency securities        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Investments 0   0  
Recurring | Level 1 | Money market funds        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Money market funds 305,283   206,868  
Recurring | Level 2        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Total 210,170   202,948  
Recurring | Level 2 | 2025 Notes        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Fair value of convertible senior notes 55,500      
Recurring | Level 2 | 2028 Notes        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Fair value of convertible senior notes 440,700      
Recurring | Level 2 | U.S. Treasury securities        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Investments 51,034   51,387  
Recurring | Level 2 | Commercial paper        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Investments 3,880   34,798  
Recurring | Level 2 | Corporate debt securities        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Investments 131,259   108,827  
Recurring | Level 2 | U.S. Government agency securities        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Investments 23,997   7,936  
Recurring | Level 2 | Money market funds        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Money market funds   0  
Recurring | Level 3        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Total 0   0  
Recurring | Level 3 | U.S. Treasury securities        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Investments 0   0  
Recurring | Level 3 | Commercial paper        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Investments 0   0  
Recurring | Level 3 | Corporate debt securities        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Investments 0   0  
Recurring | Level 3 | U.S. Government agency securities        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Investments 0   0  
Recurring | Level 3 | Money market funds        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Money market funds $ 0   $ 0  
v3.24.0.1
Business Combinations - Additional Information (Details)
 12 Months Ended
Nov. 15, 2023
USD ($)
Mar. 08, 2022
USD ($)
founder
Jan. 31, 2024
USD ($)
business
Jan. 31, 2023
USD ($)
Jan. 31, 2022
USD ($)
Oct. 31, 2023
USD ($)
Business Acquisition [Line Items]            
Payment for contingent consideration liability     $ 2,800,000 $ 300,000    
Number of business combinations | business     0      
Research and development     $ 139,769,000 $ 134,876,000 $ 95,690,000  
RSUs            
Business Acquisition [Line Items]            
Fair value at date of grant     $ 7,000,000      
Vesting period (in years)     4 years      
Catalytic            
Business Acquisition [Line Items]            
Net deferred tax liability recognized in connection with acquisition   $ 1,330,000        
Purchase consideration   68,800,000        
Research and development     $ 1,600,000      
Rundeck, Inc            
Business Acquisition [Line Items]            
Tax deductible Goodwill   $ 0        
Cash held back     300,000     $ 3,400,000
Service period (in years)   2 years        
Number of founders | founder   2        
Jeli Inc            
Business Acquisition [Line Items]            
Percentage of voting interests acquired (as a percent) 100.00%          
Purchase consideration $ 29,688,000          
Net deferred tax liability recognized in connection with acquisition 136,000          
Cash held back $ 1,400,000          
Service period (in years) 1 year 6 months          
Fair value of equity interests issued and issuable $ 494,000   $ 400,000      
Purchase consideration $ 29,194,000          
v3.24.0.1
Business Combinations - Allocation of Purchase Price (Details) - Jeli Inc - USD ($)
$ in Thousands
 12 Months Ended
Nov. 15, 2023
Jan. 31, 2024
Business Acquisition [Line Items]    
Purchase consideration $ 29,194  
Fair value of equity interests issued and issuable 494 $ 400
Purchase consideration $ 29,688  
v3.24.0.1
Business Combinations - Allocation of Purchase Consideration (Details) - USD ($)
$ in Thousands
Jan. 31, 2024
Nov. 15, 2023
Jan. 31, 2023
Mar. 08, 2022
Jan. 31, 2022
Business Acquisition [Line Items]          
Goodwill $ 137,401   $ 118,862   $ 72,126
Catalytic          
Business Acquisition [Line Items]          
Cash       $ 2,506  
Accounts receivable and other assets       801  
Prepaid expenses and other current assets       841  
Intangible assets       21,800  
Goodwill       46,736  
Accounts payable and other liabilities       (408)  
Deferred revenue       (856)  
Other tax liabilities       (1,322)  
Deferred tax liability       (1,330)  
Total purchase consideration       $ 68,768  
Jeli Inc          
Business Acquisition [Line Items]          
Cash   $ 5,123      
Accounts receivable   384      
Prepaid expenses and other current assets   101      
Intangible assets   6,900      
Goodwill   18,539      
Accrued expenses and other current liabilities   (99)      
Deferred revenue   (1,094)      
Other tax liabilities   (30)      
Deferred tax liability   (136)      
Total purchase consideration   $ 29,688      
v3.24.0.1
Business Combinations - Components of Identifiable Intangible Assets Acquired (Details) - USD ($)
$ in Thousands
Jan. 31, 2024
Nov. 15, 2023
Jan. 31, 2023
Mar. 08, 2022
Acquired Finite-Lived Intangible Assets [Line Items]        
Fair Value $ 59,027   $ 52,127  
Catalytic        
Acquired Finite-Lived Intangible Assets [Line Items]        
Fair Value       $ 21,800
Jeli Inc        
Acquired Finite-Lived Intangible Assets [Line Items]        
Fair Value   $ 6,900    
Developed technology        
Acquired Finite-Lived Intangible Assets [Line Items]        
Fair Value 31,200   24,800  
Developed technology | Catalytic        
Acquired Finite-Lived Intangible Assets [Line Items]        
Fair Value       $ 19,200
Useful life (in years)       3 years
Developed technology | Jeli Inc        
Acquired Finite-Lived Intangible Assets [Line Items]        
Fair Value   $ 6,400    
Useful life (in years)   5 years    
Customer relationships        
Acquired Finite-Lived Intangible Assets [Line Items]        
Fair Value 24,800   24,400  
Customer relationships | Catalytic        
Acquired Finite-Lived Intangible Assets [Line Items]        
Fair Value       $ 2,600
Useful life (in years)       10 years
Customer relationships | Jeli Inc        
Acquired Finite-Lived Intangible Assets [Line Items]        
Fair Value   $ 400    
Useful life (in years)   10 years    
Trademarks        
Acquired Finite-Lived Intangible Assets [Line Items]        
Fair Value $ 500   $ 400  
Trademarks | Jeli Inc        
Acquired Finite-Lived Intangible Assets [Line Items]        
Fair Value   $ 100    
Useful life (in years)   2 years    
v3.24.0.1
Goodwill and Acquired Intangible Assets - Changes in Carrying Amount of Goodwill (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2024
Jan. 31, 2023
Goodwill [Roll Forward]    
Balance as of Beginning of period $ 118,862 $ 72,126
Goodwill resulting from business combination 18,539 46,736
Balance as of end of period $ 137,401 $ 118,862
v3.24.0.1
Goodwill and Acquired Intangible Assets - Schedule of Intangible Assets Subject to Amortization (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2024
Jan. 31, 2023
Finite-Lived Intangible Assets [Line Items]    
Cost $ 59,027 $ 52,127
Accumulated Amortization (26,411) (14,903)
Net 32,616 37,224
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Cost 24,800 24,400
Accumulated Amortization (7,768) (5,319)
Net $ 17,032 $ 19,081
Weighted Average Remaining Useful Life 6 years 10 months 24 days 7 years 10 months 24 days
Developed technology    
Finite-Lived Intangible Assets [Line Items]    
Cost $ 31,200 $ 24,800
Accumulated Amortization (16,128) (8,342)
Net $ 15,072 $ 16,458
Weighted Average Remaining Useful Life 2 years 8 months 12 days 2 years 3 months 18 days
Trademarks    
Finite-Lived Intangible Assets [Line Items]    
Cost $ 500 $ 400
Accumulated Amortization (410) (400)
Net $ 90 $ 0
Weighted Average Remaining Useful Life 1 year 9 months 18 days 0 years
Assembled Workforce    
Finite-Lived Intangible Assets [Line Items]    
Cost $ 2,527 $ 2,527
Accumulated Amortization (2,105) (842)
Net $ 422 $ 1,685
Weighted Average Remaining Useful Life 3 months 18 days 1 year 3 months 18 days
v3.24.0.1
Goodwill and Acquired Intangible Assets - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 31, 2024
Jan. 31, 2023
Jan. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]      
Amortization expense related to intangible assets $ 11.5 $ 10.2 $ 3.5
v3.24.0.1
Goodwill and Acquired Intangible Assets - Schedule of Expected Amortization Expense in Future Periods (Details) - USD ($)
$ in Thousands
Jan. 31, 2024
Jan. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]    
2025 $ 11,751  
2026 5,217  
2027 3,760  
2028 3,760  
2029 3,493  
Thereafter 4,635  
Net $ 32,616 $ 37,224
v3.24.0.1
Leases - Information About Lease on Condensed Consolidated Balance Sheet (Details) - USD ($)
$ in Thousands
Jan. 31, 2024
Jan. 31, 2023
Assets    
Lease right-of-use assets $ 3,789 $ 13,982
Liabilities    
Lease liabilities 6,180 5,904
Lease liabilities, non-current $ 6,809 $ 12,704
v3.24.0.1
Leases - Additional Information (Details) - USD ($)
$ in Thousands
 1 Months Ended 12 Months Ended
Jan. 31, 2024
Jul. 31, 2023
Jan. 31, 2024
Jan. 31, 2023
Jan. 31, 2022
Leases [Abstract]          
Remaining lease term 2 years   2 years    
Weighted average remaining lease term (in years) 3 years 2 months 12 days   3 years 2 months 12 days 3 years 9 months 18 days  
Weighted average discount rate (as a percent) 3.80%   3.80% 3.70%  
Impairment of property and equipment, net and lease right-of-use assets, net $ 7,200 $ 1,200 $ 8,368 $ 0 $ 0
Operating Lease, Impairment Loss       0 0
Property, Plant, and Equipment, Lessor Asset under Operating Lease [Line Items]          
Impairment of property and equipment, net and lease right-of-use assets, net 7,200 1,200 8,368 $ 0 $ 0
Atlanta and San Francisco          
Leases [Abstract]          
Impairment of property and equipment, net and lease right-of-use assets, net     6,100    
Property, Plant, and Equipment, Lessor Asset under Operating Lease [Line Items]          
Impairment of property and equipment, net and lease right-of-use assets, net     $ 6,100    
Atlanta          
Leases [Abstract]          
ROU asset impairment charges 5,300        
Property, Plant, and Equipment, Lessor Asset under Operating Lease [Line Items]          
ROU asset impairment charges $ 5,300        
San Francisco          
Leases [Abstract]          
ROU asset impairment charges   800      
Property, Plant, and Equipment, Lessor Asset under Operating Lease [Line Items]          
ROU asset impairment charges   $ 800      
v3.24.0.1
Leases - Information About Leases on Condensed Consolidated Statement of Operations (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2024
Jan. 31, 2023
Jan. 31, 2022
Leases [Abstract]      
Operating lease expense $ 4,736 $ 5,651 $ 5,574
Short-term lease expense 1,856 1,842 756
Variable lease expense $ 1,149 $ 1,363 $ 939
v3.24.0.1
Leases - Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2024
Jan. 31, 2023
Jan. 31, 2022
Leases [Abstract]      
Cash paid for amounts included in the measurement of lease liabilities $ 6,557 $ 7,025 $ 6,319
v3.24.0.1
Leases - Schedule of Remaining Maturities of Lease Liabilities (Details)
$ in Thousands
Jan. 31, 2024
USD ($)
Leases [Abstract]  
2025 $ 6,554
2026 2,384
2027 1,910
2028 1,967
2029 1,011
Gross lease payments 13,826
Less: Imputed interest (837)
Total $ 12,989
v3.24.0.1
Debt and Financing Arrangements - Additional Information (Details)
$ / shares in Units, shares in Millions
 1 Months Ended 12 Months Ended
Oct. 31, 2023
USD ($)
day
$ / shares
Oct. 13, 2023
USD ($)
Jun. 25, 2020
USD ($)
day
$ / shares
shares
Oct. 31, 2023
USD ($)
$ / shares
Jan. 31, 2024
USD ($)
Jan. 31, 2023
USD ($)
Jan. 31, 2022
USD ($)
Debt Instrument [Line Items]              
Repurchases of convertible senior notes         $ (223,675,000) $ 0 $ 0
Long-term debt         489,516,000    
Net cost incurred to purchase capped calls     $ 35,700,000   55,102,000 0 0
2025 Notes              
Debt Instrument [Line Items]              
Repurchases of convertible senior notes       $ (223,700,000)      
Conversion rate   0.02495          
Capped Calls              
Debt Instrument [Line Items]              
Initial strike price (in dollars per share) | $ / shares     $ 40.08        
Cap price (in dollars per share) | $ / shares     $ 61.66        
Number of shares of common stock covered by capped calls (in shares) | shares     7.2        
Automatic exercise period for capped calls, trading days | day     40        
Convertible Senior Notes              
Debt Instrument [Line Items]              
Aggregate principal amount of debt issued   $ 402,500,000          
Stated interest rate   1.50% 1.25%        
Interest expense related to the notes         6,500,000 5,433,000 $ 5,398,000
Net proceeds from debt offering, after deducting initial purchaser discounts and debt issuance costs paid or payable $ 390,800,000            
Event of default, option to accelerate amounts due, minimum percentage of aggregate principal amount of outstanding debt     25.00%        
Long-term debt         $ 448,030,000 $ 282,908,000  
Convertible Senior Notes | 2025 Notes              
Debt Instrument [Line Items]              
Aggregate principal amount of debt issued 230,000,000   $ 287,500,000 230,000,000      
Stated interest rate         1.25%    
Repurchase amount 227,500,000     227,500,000      
Issuance costs attributable to company $ 2,600,000     $ 2,600,000      
Interest expense related to the notes         $ 3,700,000    
Conversion rate     0.02495        
Initial conversion price (in dollars per share) | $ / shares     $ 40.08        
Long-term debt         $ 56,903,000    
Effective interest rate         1.91%    
Convertible Senior Notes | 2028 Notes              
Debt Instrument [Line Items]              
Stated interest rate         1.50%    
Issuance costs attributable to company   $ 12,000,000          
Conversion rate     0.03656        
Initial conversion price (in dollars per share) | $ / shares $ 27.35     $ 27.35      
Long-term debt         $ 391,127,000    
Effective interest rate         2.13%    
Convertible Senior Notes | 2028 Capped Calls              
Debt Instrument [Line Items]              
Net cost incurred to purchase capped calls     $ 55,100,000        
Convertible Senior Notes | Capped Calls | 2028 Capped Calls              
Debt Instrument [Line Items]              
Initial strike price (in dollars per share) | $ / shares     $ 27.35        
Cap price (in dollars per share) | $ / shares     $ 42.90        
Number of shares of common stock covered by capped calls (in shares) | shares     14.7        
Automatic exercise period for capped calls, trading days | day     60        
Convertible Senior Notes | Debt Conversion Terms, One              
Debt Instrument [Line Items]              
Threshold trading days | day 20            
Threshold consecutive trading days | day 30            
Threshold percentage of stock price trigger 130.00%            
Convertible Senior Notes | Debt Conversion Terms, Two              
Debt Instrument [Line Items]              
Threshold trading days | day 5            
Threshold consecutive trading days | day 10            
Threshold percentage of product of last reported sales price of common stock and conversion rate on each such trading day 98.00%            
Convertible Senior Notes | On or after July 6, 2023              
Debt Instrument [Line Items]              
Threshold trading days | day     20        
Threshold consecutive trading days | day     30        
Threshold percentage of stock price trigger     130.00%        
Redemption price, percentage of principal amount to be redeemed     100.00%        
Convertible Senior Notes | On or after July 6, 2023 | 2025 Notes              
Debt Instrument [Line Items]              
Redemption, threshold trading days immediately preceding maturity date | day     41        
Convertible Senior Notes | On or after July 6, 2023 | 2028 Notes              
Debt Instrument [Line Items]              
Redemption, threshold trading days immediately preceding maturity date | day     61        
Convertible Senior Notes | Fundamental Change              
Debt Instrument [Line Items]              
Redemption price, percentage of principal amount to be redeemed     100.00%        
v3.24.0.1
Debt and Financing Arrangements - Net Carrying Amount (Details) - USD ($)
$ in Thousands
Jan. 31, 2024
Jan. 31, 2023
Liability Component:    
Net carrying amount $ 489,516  
Convertible Senior Notes    
Liability Component:    
Principal 460,000 $ 287,500
Less: unamortized issuance costs (11,970) (4,592)
Net carrying amount 448,030 $ 282,908
Convertible Senior Notes | 2025 Notes    
Liability Component:    
Principal 57,500  
Less: unamortized issuance costs (597)  
Net carrying amount 56,903  
Convertible Senior Notes | 2028 Notes    
Liability Component:    
Principal 402,500  
Less: unamortized issuance costs (11,373)  
Net carrying amount $ 391,127  
v3.24.0.1
Debt and Financing Arrangements - Interest Expense (Details) - Convertible Senior Notes - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2024
Jan. 31, 2023
Jan. 31, 2022
Debt Instrument [Line Items]      
Contractual interest expense $ 4,422 $ 3,594 $ 3,594
Amortization of debt issuance costs 2,078 1,839 1,804
Total interest expense related to the Notes $ 6,500 $ 5,433 $ 5,398
v3.24.0.1
Commitments and Contingencies - Purchase Obligations (Details)
$ in Thousands
Jan. 31, 2024
USD ($)
Purchase Commitments  
2025 $ 34,697
2026 2,499
2027 1,556
2028 790
2029 264
Thereafter 0
Total 39,806
Senior Convertible Notes  
2025 6,643
2026 63,820
2027 6,021
2028 6,021
2029 407,011
Thereafter 0
Net carrying amount 489,516
Total  
2025 41,340
2026 66,319
2027 7,577
2028 6,811
2029 407,275
Thereafter 0
Total $ 529,322
v3.24.0.1
Deferred Revenue and Performance Obligations - Deferred Revenue (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2024
Jan. 31, 2023
Jan. 31, 2022
Increase (Decrease) In Contract with Customer, Liability [Roll Forward]      
Deferred revenue, beginning of period $ 209,051 $ 170,224 $ 129,972
Billings 448,715 408,764 321,648
Deferred revenue assumed in acquisitions 1,094 856 0
Revenue recognized (430,699) (370,793) (281,396)
Deferred revenue, end of period $ 228,161 $ 209,051 $ 170,224
v3.24.0.1
Deferred Revenue and Performance Obligations - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 31, 2024
Jan. 31, 2023
Jan. 31, 2022
Revenue from Contract with Customer [Abstract]      
Percent of total revenue recognized from deferred revenue balance (as a percent) 48.00% 44.00% 44.00%
Future estimated revenue related to performance obligations $ 247.0    
v3.24.0.1
Deferred Revenue and Performance Obligations - Performance Obligations (Details)
Jan. 31, 2024
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-02-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, period 24 months
v3.24.0.1
Common Stock and Stockholders' Equity - Additional Information (Details)
$ / shares in Units, $ in Thousands
 1 Months Ended 12 Months Ended
Oct. 31, 2023
USD ($)
$ / shares
shares
Jan. 31, 2024
USD ($)
purchase_period
$ / shares
shares
Jan. 31, 2023
USD ($)
$ / shares
shares
Jan. 31, 2022
USD ($)
$ / shares
shares
Subsidiary, Sale of Stock [Line Items]        
Treasury stock. beginning balance (in shares) | shares 2,331,002 2,331,002 0  
Shares Acquired, Average Cost Per Share | $ / shares $ 21.45      
Common stock repurchased $ 50,000 $ 50,000    
Number of shares authorized for grant (in shares) | shares   31,519,553 28,881,327  
Options granted (in shares) | shares   61,719    
Weighted average grant date fair value of stock options (in dollars per share) | $ / shares   $ 13.00 $ 16.46 $ 18.26
Aggregate intrinsic value of stock options exercised   $ 22,700 $ 50,800 $ 91,000
Unrecognized compensation cost related to unvested stock options   2,100    
Stock-based compensation expense   $ 127,152 $ 109,907 $ 70,033
Shares of common stock issued under the ESPP (in shares) | shares   536,151 495,432 345,051
Minimum        
Subsidiary, Sale of Stock [Line Items]        
Range of shares to be received (as a percent)   0.00%    
Maximum        
Subsidiary, Sale of Stock [Line Items]        
Range of shares to be received (as a percent)   200.00%    
Research and development        
Subsidiary, Sale of Stock [Line Items]        
Stock-based compensation expense   $ 44,800 $ 39,012 $ 23,764
General and administrative        
Subsidiary, Sale of Stock [Line Items]        
Stock-based compensation expense   44,421 34,264 23,506
Sales and marketing        
Subsidiary, Sale of Stock [Line Items]        
Stock-based compensation expense   $ 30,345 29,804 19,012
Stock options        
Subsidiary, Sale of Stock [Line Items]        
Unrecognized compensation cost related to unvested awards, period for recognition (in years)   1 year 7 months 6 days    
RSUs        
Subsidiary, Sale of Stock [Line Items]        
Vesting period (in years)   4 years    
Unrecognized compensation cost related to unvested awards, period for recognition (in years)   2 years 3 months 18 days    
Unrecognized compensation cost related to unvested RSUs   $ 214,400    
Employee Stock Purchase Plan        
Subsidiary, Sale of Stock [Line Items]        
Number of shares available for grant (in shares) | shares   3,346,858    
Offering period (in months)   24 months    
Number of purchase periods within each offering period | purchase_period   4    
Purchase period (in months)   6 months    
Purchase price as a percentage of fair market value of stock on the offering date or the purchase date   85.00%    
Stock-based compensation expense   $ 6,000 4,900 4,700
Amount withheld on behalf of employees for future purchase   $ 10,200 $ 10,000 $ 9,700
Purchase price of common stock issued under the ESPP (in dollars per share) | $ / shares   $ 19.20 $ 19.93 $ 22.44
Performance Shares        
Subsidiary, Sale of Stock [Line Items]        
Vesting period (in years)   3 years    
Unrecognized compensation cost related to unvested awards, period for recognition (in years)   1 year 3 months 18 days    
Performance period (in years)   1 year    
Unrecognized compensation cost related to unvested RSUs   $ 4,900    
Stock options and RSUs        
Subsidiary, Sale of Stock [Line Items]        
Number of shares available for grant (in shares) | shares   17,178,454 13,581,239  
Common Stock        
Subsidiary, Sale of Stock [Line Items]        
Shares of common stock issued under the ESPP (in shares) | shares   536,151 495,432 345,051
v3.24.0.1
Common Stock and Stockholders' Equity - Shares Available for Issuance (Details) - shares
Jan. 31, 2024
Jan. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total common stock reserved at end of period (in shares) 33,887,327  
Stock options and RSUs    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Outstanding stock options and unvested RSUs outstanding (in shares) 13,362,015  
Number of shares available for grant (in shares) 17,178,454 13,581,239
ESPP    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Number of shares available for grant (in shares) 3,346,858  
v3.24.0.1
Common Stock and Stockholders' Equity - Stock Option Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Jan. 31, 2024
Jan. 31, 2023
Number of Shares    
Outstanding at beginning of period (in shares) 6,150,981  
Granted (in shares) 61,719  
Exercised (in shares) (1,160,809)  
Canceled (in shares) (176,866)  
Outstanding at end of period (in shares) 4,875,025 6,150,981
Vested as of end of period (in shares) 4,693,573  
Weighted Average Exercise Price    
Outstanding at beginning of period (in dollars per share) $ 10.61  
Granted (in dollars per share) 13.00  
Exercised (in dollars per share) 8.13  
Canceled (in dollars per share) 36.41  
Outstanding at end of period (in dollars per share) 10.29 $ 10.61
Vested as of end of period (in dollars per share) $ 9.73  
Weighted Average Remaining Contractual Term    
Outstanding 4 years 4 months 24 days 5 years 3 months 18 days
Vested 4 years 3 months 18 days  
Aggregate Intrinsic Value    
Outstanding $ 68,151 $ 117,986
Vested $ 67,142  
v3.24.0.1
Common Stock and Stockholders' Equity - Assumptions Used to Calculate Fair Value of Employee Stock Option Grants Made (Details)
 12 Months Ended
Jan. 31, 2024
Jan. 31, 2023
Jan. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Risk-free interest rate, minimum     0.05%
Risk-free interest rate, maximum     1.64%
Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (years)     6 months
Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (years)     2 years
Employee | Stock options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected dividend yield 0.00% 0.00% 0.00%
Expected volatility 55.00% 47.10%  
Expected volatility, minimum     43.80%
Expected volatility, maximum     46.90%
Expected term (years) 5 years 2 months 12 days 6 years 1 month 6 days 6 years 1 month 6 days
Risk-free interest rate, minimum 4.50%   1.04%
Risk-free interest rate, maximum 4.60%   1.35%
Risk-free interest rate   2.50%  
v3.24.0.1
Common Stock and Stockholders' Equity - Restricted Stock Units and Performance Stock Units Activity (Details)
 12 Months Ended
Jan. 31, 2024
$ / shares
shares
Weighted Average Grant Date Fair Value Per Share  
Attainment percentage 100.00%
RSUs  
Number of RSUs  
Outstanding at beginning of period (in shares) | shares 8,012,482
Granted (in shares) | shares 4,645,217
Vested (in shares) | shares (2,170,707)
Canceled (in shares) | shares (3,074,936)
Outstanding at end of period (in shares) | shares 7,412,056
Weighted Average Grant Date Fair Value Per Share  
Outstanding at beginning of period (in dollars per share) | $ / shares $ 32.55
Granted (in dollars per share) | $ / shares 30.21
Vested (in dollars per share) | $ / shares 32.12
Canceled (in dollars per share) | $ / shares 33.24
Outstanding at end of period (in dollars per share) | $ / shares $ 31.08
Performance Shares  
Number of RSUs  
Outstanding at beginning of period (in shares) | shares 825,058
Granted (in shares) | shares 594,290
Vested (in shares) | shares (21,849)
Canceled (in shares) | shares (156,524)
Performance adjustment for 2021 PSU Awards (in shares) | shares (698,983)
Outstanding at end of period (in shares) | shares 541,992
Weighted Average Grant Date Fair Value Per Share  
Outstanding at beginning of period (in dollars per share) | $ / shares $ 33.27
Granted (in dollars per share) | $ / shares 34.98
Vested (in dollars per share) | $ / shares 41.17
Canceled (in dollars per share) | $ / shares 35.84
Performance adjustment for 2021 PSU Awards (in dollars per share) | $ / shares 29.22
Outstanding at end of period (in dollars per share) | $ / shares $ 35.08
v3.24.0.1
Common Stock and Stockholders' Equity - Schedule of Assumptions Used to Calculate Fair Value of Shares to be Granted Under ESPP (Details)
 12 Months Ended
Jan. 31, 2024
Jan. 31, 2023
Jan. 31, 2022
Jan. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Risk-free interest rate, minimum     0.05%  
Risk-free interest rate, maximum     1.64%  
ESPP | Employee        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Expected dividend yield 0.00% 0.00%   0.00%
Expected volatility, minimum 35.80% 44.10% 41.20%  
Expected volatility, maximum 60.10% 65.60% 53.90%  
Risk-free interest rate, minimum 0.69% 0.11%    
Risk-free interest rate, maximum 5.29% 4.62%    
Minimum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Expected term (years)     6 months  
Minimum | ESPP | Employee        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Expected term (years) 6 months 6 months    
Maximum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Expected term (years)     2 years  
Maximum | ESPP | Employee        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Expected term (years) 2 years 2 years    
v3.24.0.1
Common Stock and Stockholders' Equity - Stock-based Compensation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2024
Jan. 31, 2023
Jan. 31, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense $ 127,152 $ 109,907 $ 70,033
Cost of revenue      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense 7,586 6,827 3,751
Research and development      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense 44,800 39,012 23,764
Sales and marketing      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense 30,345 29,804 19,012
General and administrative      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense $ 44,421 $ 34,264 $ 23,506
v3.24.0.1
Net Loss per Share - Calculation of Basic and Diluted Net Loss Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Jan. 31, 2024
Jan. 31, 2023
Jan. 31, 2022
Numerator:      
Net Income (Loss) $ (75,189) $ (128,423) $ (107,455)
Denominator:      
Weighted average shares used in calculating net loss per share, basic (in shares) 92,341 88,721 84,514
Weighted average shares used in calculating net loss per share, diluted (in shares) 92,341 88,721 84,514
Net loss per share, basic, attributable to PagerDuty, Inc. (in dollars per share) $ (0.89) $ (1.45) $ (1.27)
Net loss per share, diluted, attributable to PagerDuty, Inc. (in dollars per share) $ (0.89) $ (1.45) $ (1.27)
v3.24.0.1
Net Loss per Share - Anti-dilutive Securities (Details)
shares in Thousands
 12 Months Ended
Oct. 13, 2023
Jan. 31, 2024
shares
Jan. 31, 2023
shares
Jan. 31, 2022
shares
2025 Notes        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Conversion rate 0.02495      
Shares subject to outstanding common stock awards        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities excluded from computation of earnings per share (in shares)   12,829 14,989 14,522
Shares issuable pursuant to the 2019 ESPP        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities excluded from computation of earnings per share (in shares)   105 106 71
Restricted stock issued to acquire key personnel        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities excluded from computation of earnings per share (in shares)   25 63 122
Convertible Debt Securities        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities excluded from computation of earnings per share (in shares)       7,200
v3.24.0.1
Income Taxes - Components of Loss Before Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2024
Jan. 31, 2023
Jan. 31, 2022
Income Tax Disclosure [Abstract]      
Domestic $ (75,375) $ (130,971) $ (111,426)
Foreign (2,004) 907 4,506
Loss before benefit from (provision for) income taxes $ (77,379) $ (130,064) $ (106,920)
v3.24.0.1
Income Taxes - Components of Income (Loss) Before Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2024
Jan. 31, 2023
Jan. 31, 2022
Current      
Federal $ 0 $ 0 $ 0
State 117 0 0
Foreign 466 267 181
Total current tax expense 583 267 181
Deferred      
Federal (97) (794) 0
State (39) (536) 0
Foreign (459) 224 354
Total deferred tax expense (benefit) (595) (1,106) 354
Provision (benefit from) for income taxes $ (12) $ (839) $ 535
v3.24.0.1
Income Taxes - Reconciliation of Provision for Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2024
Jan. 31, 2023
Jan. 31, 2022
Income Tax Disclosure [Abstract]      
Income taxes computed at U.S. federal statutory rate $ (16,249) $ (27,313) $ (22,453)
State taxes, net of federal benefit (2,029) (5,044) (8,652)
Stock-based compensation 8,695 554 (15,423)
Foreign rate differential 428 300 (411)
Tax credits, net of FIN48 reserves (1,956) (1,789) (1,426)
Change in valuation allowance 10,169 31,350 48,364
Other 930 1,103 536
Provision (benefit from) for income taxes $ (12) $ (839) $ 535
v3.24.0.1
Income Taxes - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2024
Jan. 31, 2023
Jan. 31, 2022
Tax Credit Carryforward [Line Items]      
State taxes, net of federal benefit $ (2,029) $ (5,044) $ (8,652)
Increase in valuation allowance 14,200 40,800  
Unrecognized tax benefits that would affect the effective tax rate if recognized 900 $ 1,000 $ 1,100
Federal      
Tax Credit Carryforward [Line Items]      
Operating loss carryforwards 458,500    
Federal net operating loss carryforwards, subject to expiration 21,300    
Federal net operating loss carryforwards, not subject to expiration 437,200    
Research and development credit carryforwards 14,100    
California      
Tax Credit Carryforward [Line Items]      
Operating loss carryforwards 30,400    
Research and development credit carryforwards 7,000    
Canada      
Tax Credit Carryforward [Line Items]      
Operating loss carryforwards 6,700    
Research and development credit carryforwards $ 2,200    
v3.24.0.1
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Jan. 31, 2024
Jan. 31, 2023
Deferred tax assets:    
Net operating losses $ 122,343 $ 117,735
Capitalized research and development 34,757 25,568
Allowances and accruals 7,374 10,154
Stock-based compensation 11,096 11,549
Charitable contributions 3,983 3,997
Tax credits 14,704 12,105
Lease liabilities 3,262 4,659
Other 1,311 1,519
Gross deferred tax assets 198,830 187,286
Less: valuation allowance (177,078) (162,865)
Net deferred tax assets 21,752 24,421
Deferred tax liabilities:    
Deferred commissions (11,565) (12,089)
Intangible assets (11,357) (11,544)
Lease assets (958) (3,497)
Other (448) (324)
Gross deferred tax liabilities (24,328) (27,454)
Net deferred tax liabilities $ (2,576) $ (3,033)
v3.24.0.1
Income Taxes Income Taxes - Summary of Activity Related to Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2024
Jan. 31, 2023
Jan. 31, 2022
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance at beginning of period $ 7,723 $ 6,190 $ 5,018
Additions related to prior years 110 85 86
Reductions related to prior years (192) (18) (70)
Additions related to current year 1,424 1,304 1,156
Additions related to acquired positions 0 162 0
Balance at end of period $ 9,065 $ 7,723 $ 6,190
v3.24.0.1
Geographic Information - Revenue by Location (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2024
Jan. 31, 2023
Jan. 31, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue $ 430,699 $ 370,793 $ 281,396
United States      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue 312,165 283,266 212,829
International      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue $ 118,534 $ 87,527 $ 68,567
v3.24.0.1
Geographic Information - Additional Information (Details) - Property, Plant and Equipment - Geographic Concentration Risk
 12 Months Ended
Jan. 31, 2024
Jan. 31, 2023
United States    
Concentration Risk [Line Items]    
Concentration risk, percentage 73.00% 88.00%
Canada    
Concentration Risk [Line Items]    
Concentration risk, percentage 20.00% 10.00%
PORTUGAL    
Concentration Risk [Line Items]    
Concentration risk, percentage 4.00% 1.00%
United Kingdom    
Concentration Risk [Line Items]    
Concentration risk, percentage 2.00% 1.00%
CHILE    
Concentration Risk [Line Items]    
Concentration risk, percentage 1.00%  
v3.24.0.1
Restructuring Costs (Details) - USD ($)
$ in Thousands
 1 Months Ended 12 Months Ended
Jan. 31, 2024
Jul. 31, 2023
Jan. 31, 2023
Jan. 31, 2024
Jan. 31, 2023
Jan. 31, 2022
Restructuring Cost and Reserve [Line Items]            
Impairment of property and equipment, net and lease right-of-use assets, net $ 7,200 $ 1,200   $ 8,368 $ 0 $ 0
Impairment of leasehold $ 1,900     $ 2,300    
Employee Severance | Employee Restructuring Plan            
Restructuring Cost and Reserve [Line Items]            
Number of positions eliminated (as a percent)     7.00%      
Restructuring charges         $ 5,000  
v3.24.0.1
401(k) Plan (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 01, 2022
Jan. 31, 2024
Jan. 31, 2023
Jan. 31, 2022
Retirement Benefits [Abstract]        
Employer matching contribution, percent of each participant's employee contributions (as a percent) 2.00%      
Employer contributions, percent of eligible wages during the period (as a percent) 2.00%      
Expense recognized related to matching contributions   $ 3.6 $ 2.6 $ 1.3