OKTA, INC., 10-Q filed on 8/28/2020
Quarterly Report
v3.20.2
Cover Page
 6 Months Ended
Jul. 31, 2020
shares
Entity Information [Line Items]  
Document Type 10-Q
Document Quarterly Report true
Document Period End Date Jul. 31, 2020
Document Transition Report false
Entity File Number 001-38044
Entity Registrant Name Okta, Inc.
Entity Incorporation, State or Country Code DE
Entity Address, Address Line One 100 First Street, Suite 600
Entity Tax Identification Number 26-4175727
Entity Address, City or Town San Francisco
Entity Address, State or Province CA
Entity Address, Postal Zip Code 94105
City Area Code 888
Local Phone Number 722-7871
Title of 12(b) Security Class A common stock, par value $0.0001 per share
Trading Symbol OKTA
Security Exchange Name NASDAQ
Entity Current Reporting Status Yes
Entity Interactive Data Current Yes
Entity Filer Category Large Accelerated Filer
Smaller Reporting Company false
Emerging Growth Company false
Entity Shell Company false
Amendment Flag false
Entity Central Index Key 0001660134
Current Fiscal Year End Date --01-31
Document Fiscal Year Focus 2021
Document Period Focus Q2
Class A Common Stock  
Entity Information [Line Items]  
Entity Common Stock, Shares Outstanding 119,960,425
Class B Common Stock  
Entity Information [Line Items]  
Entity Common Stock, Shares Outstanding 8,127,878
v3.20.2
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Jul. 31, 2020
Jan. 31, 2020
Current assets:    
Cash and cash equivalents $ 957,234 $ 520,048
Short-term investments 1,557,279 882,976
Accounts receivable, net of allowances of $3,243 and $1,166 110,540 130,115
Deferred commissions 37,808 33,636
Prepaid expenses and other current assets 44,074 32,950
Total current assets 2,706,935 1,599,725
Property and equipment, net 63,406 53,535
Operating lease right-of-use assets 157,781 125,204
Deferred commissions, noncurrent 86,556 77,874
Intangible assets, net 30,031 32,529
Goodwill 48,023 48,023
Other assets 22,283 18,505
Total assets 3,115,015 1,955,395
Current liabilities:    
Accounts payable 4,726 3,837
Accrued expenses and other current liabilities 54,803 36,887
Accrued compensation 39,227 40,300
Convertible senior notes, net 43,578 100,703
Deferred revenue 391,246 365,236
Total current liabilities 533,580 546,963
Convertible senior notes, net, noncurrent 1,689,438 837,002
Operating lease liabilities, noncurrent 189,208 154,511
Deferred revenue, noncurrent 5,574 6,214
Other liabilities, noncurrent 12,018 5,361
Total liabilities 2,429,818 1,550,051
Commitments and contingencies (Note 11)
Stockholders’ equity:    
Preferred stock, par value $0.0001 per share; 100,000 shares authorized; no shares issued and outstanding as of July 31, 2020 and January 31, 2020 0 0
Additional paid-in capital 1,498,549 1,105,564
Accumulated other comprehensive income 5,521 892
Accumulated deficit (818,886) (701,124)
Total stockholders’ equity 685,197 405,344
Total liabilities and stockholders' equity 3,115,015 1,955,395
Class A Common Stock    
Stockholders’ equity:    
Common stock 12 11
Class B Common Stock    
Stockholders’ equity:    
Common stock $ 1 $ 1
v3.20.2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Jul. 31, 2020
Jan. 31, 2020
Allowance for accounts receivable $ 3,243 $ 1,166
Preferred stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Preferred stock, shares authorized (in shares) 100,000,000 100,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Class A Common Stock    
Common stock par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 1,000,000,000 1,000,000,000
Common stock, shares issued (in shares) 119,960,000 113,990,000
Common stock, shares outstanding (in shares) 119,960,000 113,990,000
Class B Common Stock    
Common stock par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 120,000,000 120,000,000
Common stock, shares issued (in shares) 8,128,000 8,648,000
Common stock, shares outstanding (in shares) 8,128,000 8,648,000
v3.20.2
Condensed Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jul. 31, 2020
Jul. 31, 2019
Jul. 31, 2020
Jul. 31, 2019
Revenue:        
Total revenue $ 200,446 $ 140,480 $ 383,305 $ 265,703
Cost of revenue:        
Total cost of revenue 51,147 38,780 99,633 73,875
Gross profit 149,299 101,700 283,672 191,828
Operating expenses:        
Research and development 53,866 40,045 102,360 74,077
Sales and marketing 98,322 78,385 202,365 160,497
General and administrative 42,499 26,887 76,534 52,653
Total operating expenses 194,687 145,317 381,259 287,227
Operating loss (45,388) (43,617) (97,587) (95,399)
Interest expense (16,931) (4,304) (27,695) (8,545)
Interest income and other, net 3,960 3,464 8,859 6,364
Loss on early extinguishment of debt (2,174) 0 (2,174) 0
Interest and other, net (15,145) (840) (21,010) (2,181)
Loss before benefit from income taxes (60,533) (44,457) (118,597) (97,580)
Benefit from income taxes (433) (1,477) (835) (2,634)
Net loss $ (60,100) $ (42,980) $ (117,762) $ (94,946)
Net loss per share, basic and diluted (in dollars per share) $ (0.48) $ (0.37) $ (0.94) $ (0.83)
Weighted-average shares used to compute net loss per share, basic and diluted (in shares) 126,319 115,033 124,922 114,042
Subscription        
Revenue:        
Total revenue $ 190,689 $ 132,494 $ 364,470 $ 249,657
Cost of revenue:        
Total cost of revenue 39,501 27,917 76,658 52,457
Professional services and other        
Revenue:        
Total revenue 9,757 7,986 18,835 16,046
Cost of revenue:        
Total cost of revenue $ 11,646 $ 10,863 $ 22,975 $ 21,418
v3.20.2
Condensed Consolidated Statements of Comprehensive Loss - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jul. 31, 2020
Jul. 31, 2019
Jul. 31, 2020
Jul. 31, 2019
Statement of Comprehensive Income [Abstract]        
Net loss $ (60,100) $ (42,980) $ (117,762) $ (94,946)
Other comprehensive income (loss):        
Net change in unrealized gains or losses on available-for-sale securities (1,064) 194 3,570 389
Foreign currency translation adjustments 2,843 (1,390) 1,059 (1,723)
Other comprehensive income (loss) 1,779 (1,196) 4,629 (1,334)
Comprehensive loss $ (58,321) $ (44,176) $ (113,133) $ (96,280)
v3.20.2
Condensed Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands
Total
Common stock and additional paid-in capital
Accumulated deficit
Accumulated other comprehensive income (loss)
Beginning balance at Jan. 31, 2019   $ 744,907 $ (492,211) $ (319)
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Issuance of common stock upon exercise of stock options and other activity, net   37,481    
Issuance of common stock for bonus settlement   2,809    
Stock-based compensation   54,338    
Equity component of convertible senior notes, net of issuance costs   0    
Equity component of early extinguishment of convertible senior notes   0    
Proceeds from hedges related to convertible senior notes   0    
Payments for warrants related to convertible senior notes   0    
Purchases of capped calls related to convertible senior notes   0    
Net loss $ (94,946)   (94,946)  
Other comprehensive income (loss)       (1,334)
Ending balance at Jul. 31, 2019 250,725 839,535 (587,157) (1,653)
Beginning balance at Apr. 30, 2019   784,078 (544,177) (457)
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Issuance of common stock upon exercise of stock options and other activity, net   23,965    
Issuance of common stock for bonus settlement   0    
Stock-based compensation   31,492    
Equity component of convertible senior notes, net of issuance costs   0    
Equity component of early extinguishment of convertible senior notes   0    
Proceeds from hedges related to convertible senior notes   0    
Payments for warrants related to convertible senior notes   0    
Purchases of capped calls related to convertible senior notes   0    
Net loss (42,980)   (42,980)  
Other comprehensive income (loss)       (1,196)
Ending balance at Jul. 31, 2019 250,725 839,535 (587,157) (1,653)
Beginning balance at Jan. 31, 2020 405,344 1,105,576 (701,124) 892
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Issuance of common stock upon exercise of stock options and other activity, net   42,754    
Issuance of common stock for bonus settlement   9,818    
Stock-based compensation   86,846    
Equity component of convertible senior notes, net of issuance costs   306,232    
Equity component of early extinguishment of convertible senior notes   61,664    
Proceeds from hedges related to convertible senior notes   195,046    
Payments for warrants related to convertible senior notes   (175,399)    
Purchases of capped calls related to convertible senior notes   (133,975)    
Net loss (117,762)   (117,762)  
Other comprehensive income (loss)       4,629
Ending balance at Jul. 31, 2020 685,197 1,498,562 (818,886) 5,521
Beginning balance at Apr. 30, 2020   1,168,140 (758,786) 3,742
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Issuance of common stock upon exercise of stock options and other activity, net   28,046    
Issuance of common stock for bonus settlement   0    
Stock-based compensation   48,808    
Equity component of convertible senior notes, net of issuance costs   306,232    
Equity component of early extinguishment of convertible senior notes   61,664    
Proceeds from hedges related to convertible senior notes   195,046    
Payments for warrants related to convertible senior notes   (175,399)    
Purchases of capped calls related to convertible senior notes   (133,975)    
Net loss (60,100)   (60,100)  
Other comprehensive income (loss)       1,779
Ending balance at Jul. 31, 2020 $ 685,197 $ 1,498,562 $ (818,886) $ 5,521
v3.20.2
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 6 Months Ended
Jul. 31, 2020
Jul. 31, 2019
Cash flows from operating activities:    
Net loss $ (117,762) $ (94,946)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Stock-based compensation 86,106 53,959
Depreciation, amortization and accretion 12,691 7,916
Amortization of debt discount and issuance costs 26,330 8,113
Amortization of deferred commissions 18,077 13,192
Deferred income taxes (1,915) (3,057)
Non-cash charitable contributions 2,417 652
Loss on early extinguishment of debt 2,174 0
Other, net 1,435 84
Changes in operating assets and liabilities:    
Accounts receivable 18,626 4,459
Deferred commissions (30,332) (21,372)
Prepaid expenses and other assets (7,622) 1,534
Operating lease right-of-use assets 8,972 6,189
Accounts payable 810 1,368
Accrued compensation 15,045 4,717
Accrued expenses and other liabilities (3,131) 1,304
Operating lease liabilities (7,663) (159)
Deferred revenue 25,369 36,175
Net cash provided by operating activities 49,627 20,128
Cash flows from investing activities:    
Capitalization of internal-use software costs (2,326) (1,330)
Purchases of property and equipment (10,669) (9,917)
Purchases of securities available for sale and other (1,029,281) (237,693)
Proceeds from maturities and redemption of securities available for sale 280,395 136,344
Proceeds from sales of securities available for sale and other 89,620 17,329
Purchases of intangible assets 0 (8,500)
Payments for business acquisition, net of cash acquired 0 (44,223)
Net cash used in investing activities (672,261) (147,990)
Cash flows from financing activities:    
Proceeds from issuance of convertible senior notes, net of issuance costs 1,135,418 0
Payments for repurchases of convertible senior notes (181) 0
Proceeds from hedges related to convertible senior notes 195,046 0
Payments for warrants related to convertible senior notes (175,399) 0
Purchases of capped calls related to convertible senior notes (133,975) 0
Proceeds from stock option exercises 27,517 27,453
Proceeds from shares issued in connection with employee stock purchase plan 12,821 9,005
Other, net 0 (126)
Net cash provided by financing activities 1,061,247 36,332
Effects of changes in foreign currency exchange rates on cash, cash equivalents and restricted cash 578 (1,187)
Net increase (decrease) in cash, cash equivalents and restricted cash 439,191 (92,717)
Cash, cash equivalents and restricted cash at beginning of period 531,953 311,215
Cash, cash equivalents and restricted cash at end of period 971,144 218,498
Supplementary cash flow disclosure:    
Interest 841 431
Income taxes 393 654
Issuance of common stock for repurchases of convertible senior notes 260,368 0
Vesting of early exercised common stock options 0 370
Common stock issued as charitable contribution 2,417 652
Operating lease right-of-use assets exchanged for lease liabilities 41,388 1,665
Property and equipment acquired through tenant improvement allowance 3,852 0
Issuance of common stock for bonus settlement 9,818 2,809
Reconciliation of cash, cash equivalents and restricted cash within the condensed consolidated balance sheets to the amounts shown in the condensed consolidated statements of cash flows above:    
Total cash, cash equivalents and restricted cash $ 971,144 $ 218,498
v3.20.2
Overview and Basis of Presentation
 6 Months Ended
Jul. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Overview and Basis of Presentation Overview and Basis of Presentation
Description of Business
Okta, Inc. (the Company) is the leading independent identity management platform for the enterprise. The Okta Identity Cloud enables the Company’s customers to securely connect people to technology, anywhere, anytime and from any device. The Company was incorporated in January 2009 as Saasure Inc., a California corporation, and was later reincorporated in April 2010 under the name Okta, Inc. as a Delaware corporation. The Company is headquartered in San Francisco, California.
Basis of Presentation and Principles of Consolidation
The accompanying unaudited condensed consolidated financial statements, which include the accounts of the Company and its wholly owned subsidiaries, have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). All intercompany balances and transactions have been eliminated in consolidation.
The condensed consolidated balance sheet as of January 31, 2020, included herein, was derived from the audited financial statements as of that date. The unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the results of operations for the interim periods presented, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year ending January 31, 2021 or any future period.
The Company’s fiscal year ends on January 31. References to fiscal 2021, for example, refer to the fiscal year ending January 31, 2021.
The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Form 10-K filed with the Securities and Exchange Commission (SEC) on March 6, 2020.
Use of Estimates
The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. The Company bases its estimates on historical experience and on other assumptions that its management believes are reasonable under the circumstances. Actual results could vary from those estimates. The Company’s most significant estimates include the stand alone selling price (SSP) for each distinct performance obligation included in customer contracts with multiple performance obligations, the determination of the period of benefit for deferred commissions, the determination of the effective interest rate of the liability components of its convertible senior notes, the determination of the incremental borrowing rate used for operating lease liabilities, the valuation of deferred income tax assets, and the valuation of acquired intangible assets.
In March 2020, the World Health Organization (WHO) declared the outbreak of the novel coronavirus (COVID-19) a pandemic, which continues to spread across the globe. The Company considered the impact of COVID-19 on the assumptions and estimates used and determined that there were no material adverse impacts on the condensed consolidated financial statements for the three and six months ended July 31, 2020. As events continue to evolve and additional information becomes available, our assumptions and estimates may change materially in future periods.
v3.20.2
Accounting Standards and Significant Accounting Policies
 6 Months Ended
Jul. 31, 2020
Accounting Policies [Abstract]  
Accounting Standards and Significant Accounting Policies Accounting Standards and Significant Accounting Policies

Significant Accounting Policies
The Company’s significant accounting policies are discussed in “Note 2. Summary of Significant Accounting Policies” in Item 8. Financial Statements and Supplementary Data of its Form 10-K for the fiscal year ended January 31, 2020. Except for the accounting policies for short-term investments and accounts receivable and allowances that were
updated below as a result of adopting the Financial Accounting Standards Board’s (FASB) Accounting Standards Update (ASU) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13) on February 1, 2020, there have been no significant changes to our significant accounting policies for the six months ended July 31, 2020.
Short-Term Investments
The Company’s short-term investments comprise U.S. treasury securities and corporate debt securities. The Company determines the appropriate classification of its short-term investments at the time of purchase and reevaluates such designation at each balance sheet date. The Company has classified and accounted for its short-term investments as available-for-sale securities as the Company may sell these securities at any time for use in its current operations or for other purposes, even prior to maturity. As a result, short-term investments, including securities with stated maturities beyond twelve months, are classified within current assets in the consolidated balance sheets.
Available-for-sale securities are recorded at fair value each reporting period and are periodically evaluated for unrealized losses. For unrealized losses in securities that the Company intends to hold and will not more likely than not be required to sell before recovery, the Company further evaluates whether declines in fair value below amortized cost are due to credit or non-credit related factors.
The Company considers credit related impairments to be changes in value that are driven by a change in the creditor’s ability to meet its payment obligations, and records an allowance and recognizes a corresponding loss in interest income and other, net when the impairment is incurred. Unrealized non-credit related losses and unrealized gains are reported as a separate component of accumulated other comprehensive loss in the condensed consolidated balance sheets until realized. Realized gains and losses are determined based on the specific identification method and are reported in interest income and other, net in the condensed consolidated statements of operations.
Accounts Receivable and Allowances
Accounts receivable are recorded at the invoiced amount, net of allowances. These allowances are based on the Company’s assessment of the collectibility of accounts by considering the age of each outstanding invoice, the collection history of each customer, and an evaluation of current expected risk of credit loss based on current conditions and reasonable and supportable forecasts of future economic conditions over the life of the receivable. We assess collectibility by reviewing accounts receivable on an aggregated basis where similar characteristics exist and on an individual basis when we identify specific customers with known disputes or collectibility issues. Amounts deemed uncollectible are recorded as an allowance in the condensed consolidated balance sheets with an offsetting decrease in deferred revenue or a charge to general and administrative expense in the condensed consolidated statements of operations.
As of July 31, 2020, allowances reflect increased collectibility and concession concerns stemming from business and market disruption caused by COVID-19 and may fluctuate materially in future periods as the duration and severity of the impact of the COVID-19 pandemic remains uncertain.
Concentrations of Significant Customers
As of July 31, 2020 and January 31, 2020, no single customer represented greater than 10% of accounts receivable. For the six months ended July 31, 2020 and 2019, no single customer represented greater than 10% of revenue.
Recently Adopted Accounting Pronouncements
In June 2016, the FASB issued ASU 2016-13, which changes the existing incurred loss impairment model for financial assets held at amortized cost. The new model uses a forward-looking expected loss method to calculate credit loss estimates. ASU 2016-13 also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in earlier recognition of credit losses. The Company adopted the requirements of ASU 2016-13 as of February 1, 2020 on a modified retrospective basis. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements.
In August 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (ASU 2018-15), which requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in Accounting Standards Codification 350-40 to determine which implementation costs to defer and recognize as an asset. The Company adopted the requirements of ASU 2018-15 as of February 1, 2020 on a prospective basis. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements.
In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (ASU 2019-12), as part of its Simplification Initiative to reduce the cost and complexity in accounting for income taxes. ASU 2019-12 removes certain exceptions related to the approach for intraperiod tax allocation and clarifies the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The guidance is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. The Company early adopted ASU 2019-12 as of February 1, 2020 on a prospective basis. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements.
Recent Accounting Pronouncements Not Yet Adopted
In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (ASU 2020-06), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. Among other changes, ASU 2020-06 removes from U.S. GAAP the liability and equity separation model for convertible instruments with a cash conversion feature, and as a result, after adoption, entities will no longer separately present in equity an embedded conversion feature for such debt. Similarly, the embedded conversion feature will no longer be amortized into income as interest expense over the life of the instrument. Instead, entities will account for a convertible debt instrument wholly as debt unless (1) a convertible instrument contains features that require bifurcation as a derivative under ASC Topic 815, Derivatives and Hedging, or (2) a convertible debt instrument was issued at a substantial premium. Among other potential impacts, this change is expected to reduce reported interest expense, increase reported net income, and result in a reclassification of certain conversion feature balance sheet amounts from stockholders’ equity to liabilities as it relates to the Company’s convertible senior notes. Additionally, ASU 2020-06 requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share (EPS), which is consistent with the Company’s accounting treatment under the current standard. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted for fiscal years beginning after December 15, 2020, and can be adopted on either a fully retrospective or modified retrospective basis. The Company is currently evaluating the timing, method of adoption and overall impact of this standard on its consolidated financial statements.
v3.20.2
Business Combinations
 6 Months Ended
Jul. 31, 2020
Business Combinations [Abstract]  
Business Combinations Business Combinations
On March 18, 2019, the Company acquired all issued and outstanding capital stock of Azuqua, Inc. (Azuqua), a company which provides a no-code, cloud-based integration platform that automates workflows between applications and services. The acquisition date cash consideration transferred for Azuqua was $44.2 million, net of $1.1 million in cash acquired. The Company recorded $15.7 million for developed technology intangible assets with an estimated useful life of five years and recorded $29.9 million of goodwill which is primarily attributed to the assembled workforce as well as the integration of Azuqua’s technology and the Company’s technology. The Company incurred $3.0 million of acquisition-related costs, which were recorded as general and administrative expense in the quarter ended April 30, 2019.
In connection with Azuqua and prior acquisitions, the Company entered into deferred compensation arrangements totaling $10.8 million, of which $2.2 million was recognized as compensation during the six months ended July 31, 2020. The remaining deferred compensation balance of $2.6 million is being recognized over a future weighted-average period of 1.6 years subject to continued service with the Company.
These acquisitions did not have a material impact on the Company’s condensed consolidated financial statements; therefore, historical and proforma disclosures have not been presented.
v3.20.2
Cash Equivalents and Short-term Investments
 6 Months Ended
Jul. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
Cash Equivalents and Short-term Investments Cash Equivalents and Short-term Investments
The amortized cost, unrealized gain (loss) and estimated fair value of the Company’s cash equivalents and short-term investments as of July 31, 2020 and January 31, 2020 were as follows (in thousands):  
 
As of July 31, 2020
 
Amortized
Cost
 
Unrealized
Gain
 
Unrealized
Loss
 
Estimated
Fair Value 
 
(unaudited)
Cash equivalents:
 
 
 
 
 
 
 
Money market funds
$
857,921

 
$
—

 
$
—

 
$
857,921

Total cash equivalents
857,921

 
—

 
—

 
857,921

Short-term investments:
 

 
 

 
 

 
 

U.S. treasury securities
1,142,143

 
3,376

 
(39
)
 
1,145,480

Corporate debt securities
410,369

 
1,484

 
(54
)
 
411,799

Total short-term investments
1,552,512

 
4,860

 
(93
)
 
1,557,279

Total
$
2,410,433

 
$
4,860

 
$
(93
)
 
$
2,415,200

 
As of January 31, 2020
 
Amortized
Cost
 
Unrealized
Gain
 
Unrealized
Loss
 
Estimated
Fair Value 
Cash equivalents:
 
 
 
 
 
 
 
Money market funds
$
416,584

 
$
—

 
$
—

 
$
416,584

U.S. treasury securities
19,996

 
—

 
—

 
19,996

Total cash equivalents
436,580

 
—

 
—

 
436,580

Short-term investments:
 
 
 

 
 

 
 

U.S. treasury securities
575,920

 
686

 
(8
)
 
576,598

Corporate debt securities
305,859

 
519

 
—

 
306,378

Total short-term investments
881,779

 
1,205

 
(8
)
 
882,976

Total
$
1,318,359

 
$
1,205

 
$
(8
)
 
$
1,319,556


All short-term investments were designated as available-for-sale securities as of July 31, 2020 and January 31, 2020.
The following table presents the contractual maturities of the Company’s short-term investments as of July 31, 2020 (in thousands):
 
As of July 31, 2020
 
Amortized
Cost
 
Estimated
Fair Value
 
(unaudited)
Due within one year
$
1,051,614

 
$
1,055,302

Due between one to five years
500,898

 
501,977

 Total
$
1,552,512

 
$
1,557,279


As of July 31, 2020 and January 31, 2020, the Company included $15.6 million and nil, respectively, of unsettled purchases of Short-term investments in Accrued expenses and other short-term liabilities.
The Company included $7.6 million and $5.7 million of interest receivable in Prepaid expenses and other current assets as of July 31, 2020 and January 31, 2020, respectively. The Company did not recognize an allowance for credit losses against interest receivable as of July 31, 2020 and January 31, 2020 because such potential losses were not material.
The Company had 37 and 7 short-term investments in unrealized loss positions as of July 31, 2020 and January 31, 2020, respectively. There were no material gross unrealized gains or losses from available-for-sale securities and no material realized gains or losses from available-for-sale securities that were reclassified out of accumulated other comprehensive income for the three and six months ended July 31, 2020 or 2019.
For available-for-sale debt securities that have unrealized losses, the Company evaluates whether (i) the Company has the intention to sell any of these investments, (ii) it is not more likely than not that the Company will be required to sell any of these available-for-sale debt securities before recovery of the entire amortized cost basis and (iii) the decline in the fair value of the investment is due to credit or non-credit related factors. Based on this evaluation, the Company determined that for short-term investments, there were no material credit or non-credit related impairments as of July 31, 2020 and January 31, 2020.
v3.20.2
Fair Value Measurements
 6 Months Ended
Jul. 31, 2020
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company measures its financial assets 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 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 other 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.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table presents information about the Company’s financial assets that were measured at fair value on a recurring basis using the above input categories (in thousands):  
 
As of July 31, 2020
 
Level 1
 
Level 2 
 
Level 3
 
Total
 
(unaudited)
Assets:
 
 
 
 
 
 
 
Cash equivalents:
 
 
 
 
 
 
 
Money market funds
$
857,921

 
$
—

 
$
—

 
$
857,921

Total cash equivalents
857,921

 
—

 
—

 
857,921

Short-term investments:
 

 
 

 
 

 
 

U.S. treasury securities
—

 
1,145,480

 
—

 
1,145,480

Corporate debt securities
—

 
411,799

 
—

 
411,799

Total short-term investments
—

 
1,557,279

 
—

 
1,557,279

Total cash equivalents and short-term investments
$
857,921

 
$
1,557,279

 
$
—

 
$
2,415,200

 
As of January 31, 2020
 
Level 1
 
Level 2 
 
Level 3
 
Total
Assets:
 
 
 
 
 
 
 
Cash equivalents:
 
 
 
 
 
 
 
Money market funds
$
416,584

 
$
—

 
$
—

 
$
416,584

U.S. treasury securities
—

 
19,996

 
—

 
19,996

Total cash equivalents
416,584

 
19,996

 
—

 
436,580

Short-term investments:
 

 
 

 
 

 
 

U.S. treasury securities
—

 
576,598

 
—

 
576,598

Corporate debt securities
—

 
306,378

 
—

 
306,378

Total short-term investments
—

 
882,976

 
—

 
882,976

Total cash equivalents and short-term investments
$
416,584

 
$
902,972

 
$
—

 
$
1,319,556


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.
Fair Value Measurements of Other Financial Instruments
The following table presents the carrying amounts and estimated fair values of our financial instruments that are not recorded at fair value on the condensed consolidated balance sheets (in thousands):
 
As of July 31, 2020
 
Net Carrying Amount (1)
 
Estimated
Fair Value 
 
(unaudited)
2023 convertible senior notes
$
44,242

 
$
219,886

2025 convertible senior notes
$
868,327

 
$
1,417,220

2026 convertible senior notes
$
845,491

 
$
1,341,487


(1)  
Before unamortized debt issuance costs.
The principal amounts of the 2023 convertible senior notes (2023 Notes), the 2025 convertible senior notes (2025 Notes), and the 2026 convertible senior notes (2026 Notes, and together with the 2023 Notes and 2025 Notes, the Notes) are $50.7 million, $1,060.0 million, and $1,150.0 million, respectively. The difference between the principal amounts and the respective net carrying amounts, before unamortized debt issuance costs, represents the unamortized debt discount (See Note 9 for additional details). The estimated fair values of the Notes, which are Level 2 financial instruments, were determined based on the quoted bid prices of the Notes in an over-the-counter market on the last trading day of the reporting period. As of July 31, 2020, the difference between the net carrying amount of the Notes and their estimated fair values represented the equity conversion value premium the market assigned to the Notes. Based on the closing price of our common stock of $220.98 on July 31, 2020, the if-converted values of the 2023 Notes and 2025 Notes exceeded the principal amounts of $50.7 million and $1,060.0 million, respectively, while the if-converted value of the 2026 Notes was less than the principal amount of $1,150.0 million.
v3.20.2
Deferred Commissions
 6 Months Ended
Jul. 31, 2020
Revenue from Contract with Customer [Abstract]  
Deferred Commissions Deferred Commissions
Sales commissions capitalized as contract costs totaled $18.4 million and $11.6 million in the three months ended July 31, 2020 and 2019, respectively, and $30.3 million and $21.4 million in the six months ended July 31, 2020 and 2019, respectively. Amortization of contract costs was $9.4 million and $6.9 million for the three months ended July 31, 2020 and 2019, respectively, and $18.1 million and $13.2 million for the six months ended July 31, 2020 and 2019, respectively. There was no impairment loss in relation to the costs capitalized.
Deferred Revenue and Performance Obligations
Deferred Revenue
Deferred revenue, which is a contract liability, consists primarily of payments received and accounts receivable recorded in advance of revenue recognition under the Company’s contracts with customers and is recognized as the revenue recognition criteria are met.
Subscription revenue recognized during the three months ended July 31, 2020 and 2019 that was included in the deferred revenue balances at the beginning of the respective periods was $165.0 million and $113.1 million, respectively, and $261.9 million and $174.9 million in the six months ended July 31, 2020 and 2019, respectively. Professional services and other revenue recognized in the three and six months ended July 31, 2020 and 2019 from deferred revenue balances at the beginning of the respective periods was not material.
Transaction Price Allocated to the Remaining Performance Obligations
Transaction price allocated to the remaining performance obligations represents all future, noncancelable contracted revenue that has not yet been recognized, inclusive of deferred revenue that has been invoiced and noncancelable amounts that will be invoiced and recognized as revenue in future periods.
As of July 31, 2020, total remaining noncancelable performance obligations under the Company’s subscription contracts with customers was approximately $1,426.7 million. Of this amount, the Company expects to recognize revenue of approximately $684.5 million, or 48%, over the next 12 months, with the balance to be recognized as revenue thereafter. Revenue from remaining performance obligations for professional services and other contracts as of July 31, 2020 was not material.
v3.20.2
Goodwill and Intangible Assets, net
 6 Months Ended
Jul. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets, net Goodwill and Intangible Assets, net
Goodwill
As of July 31, 2020 and January 31, 2020, goodwill was $48.0 million. No goodwill impairments were recorded during the three and six months ended July 31, 2020 and 2019.
Intangible Assets, net
Intangible assets consisted of the following (in thousands):  
 
As of July 31, 2020
 
(unaudited)
 
Gross
 
Accumulated Amortization
 
Write-offs
 
Net
Capitalized internal-use software costs
$
27,837

 
$
(17,138
)
 
$
—

 
$
10,699

Purchased developed technology
28,800

 
(9,508
)
 
—

 
19,292

Software licenses
1,112

 
(1,072
)
 
—

 
40

 
$
57,749

 
$
(27,718
)
 
$
—

 
$
30,031

 
As of January 31, 2020
 
Gross
 
Accumulated Amortization
 
Write-offs
 
Net
Capitalized internal-use software costs
$
24,890

 
$
(14,828
)
 
$
(119
)
 
$
9,943

Purchased developed technology
28,800

 
(6,321
)
 
—

 
22,479

Software licenses
1,112

 
(1,005
)
 
—

 
107

 
$
54,802

 
$
(22,154
)
 
$
(119
)
 
$
32,529


The Company capitalized $1.8 million and $1.2 million of internal-use software costs during the three months ended July 31, 2020 and 2019, respectively and $3.1 million and $1.7 million of internal use software costs in the six months ended July 31, 2020 and 2019, respectively. Stock-based compensation expense included in the total amounts capitalized were immaterial.
The remaining weighted-average useful life of all purchased developed technology was 3.5 years as of July 31, 2020.
Amortization expense of intangible assets for the three months ended July 31, 2020 and 2019 was $2.8 million and $3.0 million, respectively and $5.6 million and $5.1 million of internal-use software costs in the six months ended July 31, 2020 and 2019, respectively.
v3.20.2
Deferred Revenue and Performance Obligations
 6 Months Ended
Jul. 31, 2020
Revenue from Contract with Customer [Abstract]  
Deferred Revenue and Performance Obligations Deferred Commissions
Sales commissions capitalized as contract costs totaled $18.4 million and $11.6 million in the three months ended July 31, 2020 and 2019, respectively, and $30.3 million and $21.4 million in the six months ended July 31, 2020 and 2019, respectively. Amortization of contract costs was $9.4 million and $6.9 million for the three months ended July 31, 2020 and 2019, respectively, and $18.1 million and $13.2 million for the six months ended July 31, 2020 and 2019, respectively. There was no impairment loss in relation to the costs capitalized.
Deferred Revenue and Performance Obligations
Deferred Revenue
Deferred revenue, which is a contract liability, consists primarily of payments received and accounts receivable recorded in advance of revenue recognition under the Company’s contracts with customers and is recognized as the revenue recognition criteria are met.
Subscription revenue recognized during the three months ended July 31, 2020 and 2019 that was included in the deferred revenue balances at the beginning of the respective periods was $165.0 million and $113.1 million, respectively, and $261.9 million and $174.9 million in the six months ended July 31, 2020 and 2019, respectively. Professional services and other revenue recognized in the three and six months ended July 31, 2020 and 2019 from deferred revenue balances at the beginning of the respective periods was not material.
Transaction Price Allocated to the Remaining Performance Obligations
Transaction price allocated to the remaining performance obligations represents all future, noncancelable contracted revenue that has not yet been recognized, inclusive of deferred revenue that has been invoiced and noncancelable amounts that will be invoiced and recognized as revenue in future periods.
As of July 31, 2020, total remaining noncancelable performance obligations under the Company’s subscription contracts with customers was approximately $1,426.7 million. Of this amount, the Company expects to recognize revenue of approximately $684.5 million, or 48%, over the next 12 months, with the balance to be recognized as revenue thereafter. Revenue from remaining performance obligations for professional services and other contracts as of July 31, 2020 was not material.
v3.20.2
Convertible Senior Notes, Net
 6 Months Ended
Jul. 31, 2020
Debt Disclosure [Abstract]  
Convertible Senior Notes, Net Convertible Senior Notes, Net
2023 Convertible Senior Notes
The 2023 Notes are senior, unsecured obligations of the Company, and bear interest at a fixed rate of 0.25% per year. Interest is payable in cash semi-annually in arrears on February 15 and August 15 of each year, beginning on August 15, 2018. The 2023 Notes mature on February 15, 2023 unless earlier repurchased or converted. The Company may not redeem the 2023 Notes prior to maturity. The total net proceeds from the 2023 Notes, after deducting initial purchasers’ discounts and debt issuance costs, was $335.0 million.
In September 2019, the Company used part of the net proceeds from the issuance of the 2025 Notes to repurchase a portion of the 2023 Notes, which consisted of a repurchase of $224.4 million aggregate principal amount of the 2023 Notes in privately-negotiated transactions, for aggregate consideration of $604.8 million, consisting of approximately $224.4 million in cash and approximately 3.0 million shares of Class A common stock (First Partial Repurchase of 2023 Notes). The $604.8 million in aggregate consideration was allocated between the debt and equity components in the amounts of $197.7 million and $407.1 million respectively, using an effective interest rate of 4.00% to determine the fair value of the liability component. As of the repurchase date, the carrying value of the notes subject to the First Partial Repurchase of 2023 Notes, net of unamortized debt discount and issuance costs, was $183.1 million. The First Partial Repurchase of 2023 Notes resulted in a $14.6 million loss on early debt extinguishment in fiscal 2020, of which $3.8 million consisted of unamortized debt issuance costs.
In June 2020, the Company used part of the net proceeds from the issuance of the 2026 Notes to repurchase a portion of the 2023 Notes, which consisted of a repurchase of $69.9 million aggregate principal amount of the 2023 Notes in privately-negotiated transactions, for aggregate consideration of $260.5 million, consisting of approximately $0.2 million in cash and approximately 1.4 million shares of Class A common stock (Second Partial Repurchase of 2023 Notes, and together with the First Partial Repurchase of 2023 Notes, the 2023 Notes Partial Repurchases). The $260.5 million in aggregate consideration was allocated between the debt and equity components in the amounts of $61.8 million and $198.7 million respectively, using an effective interest rate of 4.90% to determine the fair value of the liability component. As of the repurchase date, the carrying value of the notes subject to the Second Partial Repurchase of 2023 Notes, net of unamortized debt discount and issuance costs, was $59.6 million. The Second Partial Repurchase of 2023 Notes resulted in a $2.2 million loss on early debt extinguishment in fiscal 2021, of which $1.0 million consisted of unamortized debt issuance costs.
The interest rates used in the 2023 Notes Partial Repurchases were based on the income and market based approaches used to determine the effective interest rate of the 2025 Notes and 2026 Notes, adjusted for the remaining tenor of the 2023 Notes. As of July 31, 2020, $50.7 million of principal remained outstanding on the 2023 Notes.
The terms of the 2023 Notes are governed by an Indenture by and between the Company and Wilmington Trust, National Association, as Trustee (the 2023 Indenture). Upon conversion, the 2023 Notes may be settled in cash, shares of Class A common stock or a combination of cash and shares of Class A common stock, at the Company’s election.
The 2023 Notes are convertible at an initial conversion rate of 20.6795 shares of Class A common stock per $1,000 principal amount of the 2023 Notes, which is equal to an initial conversion price of approximately $48.36 per share of Class A common stock, subject to adjustment under certain circumstances in accordance with the terms of the 2023 Indenture. Prior to the close of business on the business day immediately preceding October 15, 2022, holders of the 2023 Notes may convert all or a portion of their 2023 Notes only in multiples of $1,000 principal amount, under the following circumstances:
•
during any fiscal quarter commencing after the fiscal quarter ending on April 30, 2018 (and only during such fiscal quarter), if the last reported sale price of Class A common stock for at least 20 trading days (whether or not consecutive) during the 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 conversion price of the 2023 Notes on each applicable trading day;
•
during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the 2023 Notes for each trading day of that five consecutive trading day period was less than 98% of the product of the last reported sale price of Class A common stock and the conversion rate on such trading day; or
•
upon the occurrence of specified corporate events, as described in the 2023 Indenture.
On or after October 15, 2022 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their 2023 Notes regardless of the foregoing circumstances. For at least twenty trading days during the period of thirty consecutive trading days ended July 31, 2020, the last reported sale price of the Company’s common stock was equal to or exceeded 130% of the conversion price of the 2023 Notes on each applicable trading day. As a result, the 2023 Notes are convertible at the option of the holders during the fiscal quarter ending October 31, 2020 and were classified as current liabilities on the condensed consolidated balance sheet as of July 31, 2020. In addition, as of the date of this filing, the Company has received an immaterial amount of conversion requests and holders of the 2023 Notes have converted an immaterial amount of such notes (not in connection with the 2023 Notes Partial Repurchases).
Holders of the 2023 Notes who convert their 2023 Notes in connection with certain corporate events that constitute a make-whole fundamental change (as defined in the 2023 Indenture) are, under certain circumstances, entitled to an increase in the conversion rate. Additionally, in the event of a corporate event that constitutes a fundamental change (as defined in the 2023 Indenture), holders of the 2023 Notes may require the Company to repurchase all or a portion of their 2023 Notes at a price equal to 100% of the principal amount of the 2023 Notes being repurchased, plus any accrued and unpaid interest.
In accounting for the issuance of the 2023 Notes, the Company separated the 2023 Notes into liability and equity components, using an effective interest rate of 5.68% to determine the fair value of the liability component. This interest rate was based on both an income and a market based approach. For the income approach, the Company used a convertible bond pricing model, which included several assumptions including volatility and the risk-free rate. For the market approach, the Company observed the price of the Note Hedges (see below) it purchased for its 2023 Notes and also performed an evaluation of issuances of convertible debt securities by other companies with similar credit risk ratings at the time of issuance. The following table sets forth total interest expense recognized related to the 2023 Notes (in thousands):
 
Three Months Ended July 31,
 
Six Months Ended July 31,
 
2020
 
2019
 
2020
 
2019
 
(unaudited)
Contractual interest expense
$
52

 
$
215

 
$
127

 
$
431

Amortization of debt issuance costs
90

 
329

 
217

 
648

Amortization of debt discount
958

 
3,759

 
2,328

 
7,465

Total
$
1,100

 
$
4,303

 
$
2,672

 
$
8,544


Total initial issuance costs of $10.0 million related to the 2023 Notes were allocated between liability and equity in the same proportion as the allocation of the total proceeds to the liability and equity components. Issuance costs attributable to the liability component are being amortized to interest expense over the respective term of the 2023 Notes using the effective interest rate method. The issuance costs attributable to the equity component were netted against the respective equity component in Additional paid-in capital. The Company initially recorded liability issuance costs of $7.7 million and equity issuance costs of $2.3 million.
The 2023 Notes, net consisted of the following (in thousands):
 
As of July 31, 2020
 
(unaudited)
Liability component:
 
Principal
$
50,665

Less: unamortized debt issuance costs and debt discount
(7,087
)
Net carrying amount
$
43,578

 
 
 
As of July 31, 2020
 
(unaudited)
Equity component:
 
2023 Notes
$
11,743

Less: issuance costs
(341
)
Carrying amount of the equity component(1)
$
11,402

(1) Included in the condensed consolidated balance sheets within Additional paid-in capital.
Note Hedges
In connection with the pricing of the 2023 Notes, the Company entered into convertible note hedges with respect to its Class A common stock (Note Hedges). The Note Hedges are purchased call options that give the Company the option to purchase, subject to anti-dilution adjustments substantially identical to those in the 2023 Notes, approximately 7.1 million shares of its Class A common stock for approximately $48.36 per share (subject to adjustment), corresponding to the approximate initial conversion price of the 2023 Notes, exercisable upon conversion of the 2023 Notes. The Note Hedges will expire in 2023, if not exercised earlier. The Note Hedges are intended to offset potential dilution to the Company’s Class A common stock and/or offset the potential cash payments that the Company could be required to make in excess of the principal amount upon any conversion of the 2023 Notes under certain circumstances. The Note Hedges are separate transactions and are not part of the terms of the 2023 Notes.
The Company paid an aggregate amount of $80.0 million for the Note Hedges. The amount paid for the Note Hedges was recorded as a reduction to Additional paid-in capital in the condensed consolidated balance sheets.
In September 2019 and in June 2020, and in connection with the First Partial Repurchase of 2023 Notes and Second Partial Repurchase of 2023 Notes, the Company terminated Note Hedges corresponding to approximately 4.6 million and 1.4 million shares for cash proceeds of $405.9 million and $195.0 million, respectively. The proceeds were recorded as an increase to Additional paid-in capital in the condensed consolidated balance sheets. As of July 31, 2020, Note Hedges giving the Company the option to purchase approximately 1.0 million shares (subject to adjustment) remained outstanding.
Warrants
In connection with the issuance of the 2023 Notes, the Company also entered into separate warrant transactions pursuant to which it sold net-share-settled (or, at the Company’s election subject to certain conditions, cash-settled) warrants (Warrants) to acquire, subject to anti-dilution adjustments, up to approximately 7.1 million shares over 80 scheduled trading days beginning in May 2023 of the Company’s Class A common stock at an initial exercise price of approximately $68.06 per share (subject to adjustment). If the Warrants are not exercised on their exercise dates, they will expire. If the market value per share of the Company’s Class A common stock exceeds the applicable exercise price of the Warrants, the Warrants could have a dilutive effect on the Company’s Class A common stock unless, subject to the terms of the Warrants, the Company elects to cash settle the Warrants. The Warrants are separate transactions and are not part of the terms of the 2023 Notes or the Note Hedges.
The Company received aggregate proceeds of $52.4 million from the sale of the Warrants in connection with the 2023 Notes. The proceeds from the sale of the Warrants were recorded as an increase to Additional paid-in capital in the condensed consolidated balance sheets.
In September 2019 and in June 2020, and in connection with the First Partial Repurchase of 2023 Notes and Second Partial Repurchase of 2023 Notes, the Company terminated Warrants corresponding to approximately 4.6 million and 1.4 million shares for total cash payments of $358.6 million and $175.4 million, respectively. The termination payments were recorded as a decrease to Additional paid-in capital in the condensed consolidated balance sheets.
As of July 31, 2020, Warrants to acquire up to approximately 1.0 million shares (subject to adjustment) remained outstanding.
2025 Convertible Senior Notes
The 2025 Notes are senior, unsecured obligations of the Company, and bear interest at a fixed rate of 0.125% per year. Interest is payable in cash semi-annually in arrears on March 1 and September 1 of each year, beginning on March 1, 2020. The 2025 Notes mature on September 1, 2025 unless earlier redeemed, repurchased or converted. The total net proceeds from the 2025 Notes, after deducting initial purchasers’ discounts and debt issuance costs, were $1,040.7 million.
The terms of the 2025 Notes are governed by an Indenture by and between the Company and Wilmington Trust, National Association, as Trustee (the 2025 Indenture). Upon conversion, the 2025 Notes may be settled in cash, shares of Class A common stock or a combination of cash and shares of Class A common stock, at the Company’s election.
The 2025 Notes are convertible at an initial conversion rate of 5.2991 shares of class A common stock per $1,000 principal amount of the 2025 Notes, which is equal to an initial conversion price of approximately $188.71 per share of Class A common stock, subject to adjustment under certain circumstances in accordance with the terms of the 2025 Indenture. Prior to the close of business on the business day immediately preceding June 1, 2025, holders of the 2025 Notes may convert all or a portion of their 2025 Notes only in multiples of $1,000 principal amount, under the following circumstances:
•
during any fiscal quarter commencing after the fiscal quarter ending on January 31, 2020 (and only during such fiscal quarter), if the last reported sale price of Class A common stock for at least 20 trading days (whether or not consecutive) during the 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 conversion price of the 2025 Notes on each applicable trading day;
•
during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the 2025 Notes for each trading day of that five consecutive trading day period was less than 98% of the product of the last reported sale price of Class A common stock and the conversion rate on such trading day;
•
if the Company calls the notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or
•
upon the occurrence of specified corporate events, as described in the 2025 Indenture.
On or after June 1, 2025 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their 2025 Notes regardless of the foregoing circumstances. During the three months ended July 31, 2020, the conditions allowing holders of the 2025 Notes to convert were not met.
The Company may redeem for cash all or any portion of the 2025 Notes, at its option, on or after September 6, 2022, if the last reported sale price of the Company’s Class A common stock has been at least 130% of the conversion price 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 preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the 2025 Notes to be redeemed, plus any accrued and unpaid interest to, but excluding, the redemption date. During the three months ended July 31, 2020, the Company did not redeem any of the 2025 Notes.
Holders of the 2025 Notes who convert their 2025 Notes in connection with certain corporate events that constitute a make-whole fundamental change (as defined in the 2025 Indenture) or in connection with the Company’s issuance of a redemption notice are, under certain circumstances, entitled to an increase in the conversion rate. Additionally, in the event of a corporate event that constitutes a fundamental change (as defined in the 2025 Indenture), holders of
the 2025 Notes may require the Company to repurchase all or a portion of their 2025 Notes at a price equal to 100% of the principal amount of the 2025 Notes being repurchased, plus any accrued and unpaid interest.
In accounting for the issuance of the 2025 Notes, the Company separated the 2025 Notes into liability and equity components using an effective interest rate of 4.10% to determine the fair value of the liability component. This interest rate was based on both an income and a market based approach. For the income approach, the Company used a convertible bond pricing model, which included several assumptions including volatility and the risk-free rate. For the market approach, the Company performed an evaluation of issuances of convertible debt securities by other companies with similar credit risk ratings at the time of issuance. The following table sets forth total interest expense recognized related to the 2025 Notes (in thousands):
 
Three Months Ended
 
Six Months Ended
 
July 31, 2020
 
(unaudited)
Contractual interest expense
$
331

 
$
662

Amortization of debt issuance costs
518

 
1,024

Amortization of debt discount
8,440

 
16,794

Total
$
9,289

 
$
18,480


Total issuance costs of $19.3 million related to the 2025 Notes were allocated between liability and equity in the same proportion as the allocation of the total proceeds to the liability and equity components. Issuance costs attributable to the liability component are being amortized to interest expense over the respective term of the 2025 Notes using the effective interest rate method. The issuance costs attributable to the equity component were netted against the respective equity component in Additional paid-in capital. The Company recorded liability issuance costs of $15.3 million and equity issuance costs of $4.0 million.
The 2025 Notes, net consisted of the following (in thousands):
 
As of July 31, 2020
 
(unaudited)
Liability component:
 
Principal
$
1,060,000

Less: unamortized debt issuance costs and debt discount
(205,182
)
Net carrying amount
$
854,818

 
 
 
At Issuance
Equity component:
 
2025 Notes
$
221,387

Less: issuance costs
(4,040
)
Carrying amount of the equity component(1)
$
217,347

(1) Included in the condensed consolidated balance sheets within Additional paid-in capital.
2025 Capped Calls
In connection with the pricing of the 2025 Notes, the Company entered into capped call transactions with respect to its Class A common stock (2025 Capped Calls). The 2025 Capped Calls are purchased call options that give the Company the option to purchase, subject to anti-dilution adjustments substantially identical to those in the 2025 Notes, approximately 5.6 million shares of its Class A common stock for approximately $188.71 per share (subject to adjustment), corresponding to the approximate initial conversion price of the 2025 Notes, exercisable upon conversion of the 2025 Notes. The 2025 Capped Calls have initial cap prices of $255.88 per share (subject to adjustment) and will expire in 2025, if not exercised earlier. The 2025 Capped Calls are intended to offset potential dilution to the Company’s Class A common stock and/or offset the potential cash payments that the Company could be required to make in excess of the principal amount upon any conversion of the 2025 Notes under certain circumstances. The Capped Calls are separate transactions and are not part of the terms of the 2025 Notes.
The Company paid an aggregate amount of $74.1 million for the 2025 Capped Calls. The amount paid for the 2025 Capped Calls was recorded as a reduction to Additional paid-in capital in the condensed consolidated balance sheets.
2026 Convertible Senior Notes
The 2026 Notes are senior, unsecured obligations of the Company, and bear interest at a fixed rate of 0.375% per year. Interest is payable in cash semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2020. The 2026 Notes mature on June 15, 2026 unless earlier redeemed, repurchased or converted. The total net proceeds from the 2026 Notes, after deducting initial purchasers’ discounts and debt issuance costs, were $1,134.9 million.
The terms of the 2026 Notes are governed by an Indenture by and between the Company and Wilmington Trust, National Association, as Trustee (the 2026 Indenture, and together with the 2023 Indenture and 2025 Indenture, the Indentures). Upon conversion, the 2026 Notes may be settled in cash, shares of Class A common stock or a combination of cash and shares of Class A common stock, at the Company’s election.
The 2026 Notes are convertible at an initial conversion rate of 4.1912 shares of Class A common stock per $1,000 principal amount of the 2026 Notes, which is equal to an initial conversion price of approximately $238.60 per share of Class A common stock, subject to adjustment under certain circumstances in accordance with the terms of the Indenture. Prior to the close of business on the business day immediately preceding March 15, 2026, holders of the 2026 Notes may convert all or a portion of their 2026 Notes only in multiples of $1,000 principal amount, under the following circumstances:
•
during any fiscal quarter commencing after the fiscal quarter ending on October 31, 2020 (and only during such fiscal quarter), if the last reported sale price of our Class A common stock for at least 20 trading days (whether or not consecutive) during the 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 conversion price of the 2026 Notes on each applicable trading day;
•
during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the 2026 Notes for each trading day of that five consecutive trading day period was less than 98% of the product of the last reported sale price of our Class A common stock and the conversion rate on such trading day;
•
if the Company calls the notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or
•
upon the occurrence of specified corporate events, as described in the Indenture.
On or after March 15, 2026 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their 2026 Notes regardless of the foregoing circumstances. During the three months ended July 31, 2020, the conditions allowing holders of the 2026 Notes to convert were not met.
The Company may redeem for cash all or any portion of the 2026 Notes, at its option, on or after June 20, 2023, if the last reported sale price of the Company’s Class A common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding
the date on which we provide notice of redemption, during any 30 consecutive trading day period ending on and including the trading day preceding the date on which we provide notice of redemption price equal to 100% of the principal amount of the notes to be redeemed, plus any accrued and unpaid interest to, but excluding, the redemption date. During the three months ended July 31, 2020, the Company did not redeem any of the 2026 Notes.
Holders of the 2026 Notes who convert their 2026 Notes in connection with certain corporate events that constitute a make-whole fundamental change (as defined in the Indenture) or in connection with the Company’s issuance of a redemption notice are, under certain circumstances, entitled to an increase in the conversion rate. Additionally, in the event of a corporate event that constitutes a fundamental change (as defined in the Indenture), holders of the 2026 Notes may require the Company to repurchase all or a portion of their 2026 Notes at a price equal to 100% of the principal amount of the 2026 Notes being repurchased, plus any accrued and unpaid interest.
In accounting for the issuance of the 2026 Notes, the Company separated the 2026 Notes into liability and equity components using an effective interest rate of 5.75% to determine the fair value of the liability component. This interest rate was based on both an income and a market based approach. For the income approach, the Company used a convertible bond pricing model, which included several assumptions including volatility, the risk-free rate and observable trading activity for the Company’s existing Notes. For the market approach, the Company performed an evaluation of issuances of debt securities without conversion features by other companies with similar credit risk ratings at the time of issuance. The following table sets forth total interest expense recognized related to the 2026 Notes (in thousands):
 
 
Three and Six Months Ended
 
 
July 31, 2020
 
 
(unaudited)
Contractual interest expense
 
$
575

Amortization of debt issuance costs
 
165

Amortization of debt discount
 
5,802

Total
 
$
6,542


Total issuance costs of $15.1 million related to the 2026 Notes were allocated between liability and equity in the same proportion as the allocation of the total proceeds to the liability and equity components. Issuance costs attributable to the liability component are being amortized to interest expense over the respective term of the 2026 Notes using the effective interest rate method. The issuance costs attributable to the equity component were netted against the respective equity component in Additional paid-in capital. The Company recorded liability issuance costs of $11.0 million and equity issuance costs of $4.1 million.
The 2026 Notes, net consisted of the following (in thousands):
 
As of July 31, 2020
 
(unaudited)
Liability component:
 
Principal
$
1,150,000

Less: unamortized debt issuance costs and debt discount
(315,380
)
Net carrying amount
$
834,620

 
 
 
At Issuance
 
(unaudited)
Equity component:
 
2026 Notes
$
310,311

Less: issuance costs
(4,079
)
Carrying amount of the equity component(1)
$
306,232

(1) Included in the condensed consolidated balance sheets within Additional paid-in capital.
2026 Capped Calls
In connection with the pricing of the 2026 Notes, the Company entered into capped call transactions with respect to its Class A common stock (2026 Capped Calls). The 2026 Capped Calls are purchased call options that give the Company the option to purchase, subject to anti-dilution adjustments substantially identical to those in the 2026 Notes, approximately 4.8 million shares of its Class A common stock for approximately $238.60 per share (subject to adjustment), corresponding to the approximate initial conversion price of the 2026 Notes, exercisable upon conversion of the 2026 Notes. The 2026 Capped Calls have initial cap prices of $360.14 per share (subject to adjustment) and will expire in 2026, if not exercised earlier. The 2026 Capped Calls are intended to offset potential dilution to the Company’s Class A common stock and/or offset the potential cash payments that the Company could be required to make in excess of the principal amount upon any conversion of the 2026 Notes under certain circumstances. The 2026 Capped Calls are separate transactions and are not part of the terms of the 2026 Notes.
The Company paid an aggregate amount of $134.0 million for the 2026 Capped Calls. The amount paid for the 2026 Capped Calls was recorded as a reduction to Additional paid-in capital in the consolidated balance sheets.
v3.20.2
Leases
 6 Months Ended
Jul. 31, 2020
Leases [Abstract]  
Leases Leases

The Company has entered into various non-cancelable office space operating leases with original lease periods expiring between 2020 and 2028. These leases do not contain material variable rent payments, residual value guarantees, covenants or other restrictions.
Operating lease costs were as follows (in thousands):
 
 
Three Months Ended July 31,
 
Six Months Ended July 31,
 
 
2020
 
2019
 
2020
 
2019
 
 
(unaudited)
Operating lease cost(1)
 
$
8,334

 
$
5,620

 
$
15,704

 
$
11,083

(1) Amounts are presented exclusive of sublease income and include short-term leases, which are immaterial.
The weighted-average remaining term of the Company’s operating leases was 7.4 and 7.9 years and the weighted-average discount rate used to measure the present value of the operating lease liabilities was 5.6% and 5.7% as of July 31, 2020 and January 31, 2020, respectively.
Maturities of the Company’s operating lease liabilities, which do not include short-term leases, as of July 31, 2020 were as follows (in thousands):
 
 
Operating Leases
 
 
(unaudited)
2021
 
$
12,971

2022
 
35,972

2023
 
36,596

2024
 
37,461

2025
 
35,415

Thereafter
 
99,891

Total lease payments
 
258,306

Less imputed interest
 
(49,616
)
Total operating lease liabilities
 
$
208,690


Cash payments included in the measurement of the Company’s operating lease liabilities were $7.8 million and $2.4 million for the three months ended July 31, 2020 and 2019, respectively, and $15.0 million and $4.8 million in the six months ended July 31, 2020 and 2019, respectively.
As of July 31, 2020, the Company has $4.7 million of undiscounted future payments under an operating lease that has not yet commenced, which is excluded from the table above. This operating lease will commence in fiscal 2021 and has a lease term of 4.0 years.
v3.20.2
Commitments and Contingencies
 6 Months Ended
Jul. 31, 2020
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies

Letters of Credit
In conjunction with the execution of certain office space operating leases, letters of credit in the aggregate amount of $11.2 million and $11.9 million were issued and outstanding as of July 31, 2020 and January 31, 2020, respectively. No draws have been made under such letters of credit.
Legal Matters
From time to time in the normal course of business, the Company may be subject to various legal matters such as threatened or pending claims or proceedings. There were no such material matters as of July 31, 2020.
v3.20.2
Employee Incentive Plans
 6 Months Ended
Jul. 31, 2020
Share-based Payment Arrangement [Abstract]  
Employee Incentive Plans Employee Incentive Plans
The Company’s equity incentive plans provide for granting stock options, restricted stock units (RSUs) and restricted stock awards to employees, consultants, officers and directors. In addition, the Company offers an Employee Stock Purchase Plan (ESPP) to eligible employees.
Stock-based compensation expense was recorded in the following cost and expense categories in the Company’s condensed consolidated statements of operations (in thousands):  
 
Three Months Ended
July 31,
 
Six Months Ended
July 31,
 
2020
 
2019
 
2020
 
2019
 
(unaudited)
Cost of revenue
 
 
 
 
 
 
 
Subscription
$
5,164

 
$
3,111

 
$
9,139

 
$
5,533

Professional services and other
2,000

 
1,873

 
3,811

 
3,392

Research and development
14,953

 
9,082

 
26,888

 
15,428

Sales and marketing
13,165

 
9,236

 
24,325

 
16,022

General and administrative
13,112

 
7,972

 
21,959

 
13,584

Total
$
48,394

 
$
31,274

 
$
86,122

 
$
53,959


Stock-based compensation expense recorded to research and development in the condensed consolidated statements of operations excludes amounts that were capitalized related to internal-use software for the three and six months ended July 31, 2020 and 2019. See Note 7 for further details.
Equity Incentive Plans
The Company has two equity incentive plans: the 2009 Stock Plan (2009 Plan) and the 2017 Equity Incentive Plan (2017 Plan). All shares that remain available for future grants are under the 2017 Plan. As of July 31, 2020, options to purchase 1,210,791 shares of Class A common stock and 8,707,490 shares of Class B common stock remained outstanding.
Shares of common stock reserved for future issuance were as follows:
 
As of
 
July 31, 2020
 
(unaudited)
Stock options and unvested RSUs outstanding
15,180,332

Available for future stock option and RSU grants
20,798,312

Available for ESPP
4,752,501

 
40,731,145


Stock Options
A summary of the Company’s stock option activity and related information was as follows:  
 
Number of
Options 
 
Weighted-
Average
Exercise
Price 
 
Weighted-
Average
Remaining
Contractual
Term (Years)
 
Aggregate
Intrinsic 
Value
(in thousands)
Outstanding as of January 31, 2020
12,359,302

 
$
11.82

 
6.2
 
$
1,436,487

Granted
399,936

 
144.58

 
 
 
 
Exercised
(2,705,093
)
 
10.17

 
 
 
 
Canceled
(135,864
)
 
19.68

 
 
 
 
Outstanding as of July 31, 2020 (unaudited)
9,918,281

 
$
17.52

 
6.0
 
$
2,017,986

As of July 31, 2020
 
 
 
 
 
 
 
Vested and exercisable (unaudited)
7,606,991

 
$
9.43

 
5.6
 
$
1,609,285


As of July 31, 2020, there was a total of $41.6 million of unrecognized stock-based compensation expense, which is expected to be recognized over a weighted-average period of 1.5 years.
Restricted Stock Units
A summary of the Company’s RSU activities and related information was as follows:  
 
Number of
RSUs
 
Weighted-
Average
Grant Date Fair Value Per Share
Outstanding as of January 31, 2020
4,893,241

 
$
77.99

Granted
1,779,276

 
159.92

Vested
(1,156,701
)
 
78.72

Forfeited
(253,765
)
 
79.89

Outstanding as of July 31, 2020 (unaudited)
5,262,051

 
$
105.44


As of July 31, 2020, there was $519.4 million of unrecognized stock-based compensation expense related to unvested RSUs, which is expected to be recognized over a weighted-average period of 2.7 years based on vesting under the award service conditions.
Employee Stock Purchase Plan
The ESPP provides for 12-month offering periods beginning June 21 and December 21 of each year, and each offering period consists of up to two six-month purchase periods.
The Company estimated the fair value of ESPP purchase rights using a Black-Scholes option pricing model with the following assumptions:
 
Three Months Ended July 31,
 
Six Months Ended July 31,
 
2020
 
2019
 
2020
 
2019
 
 
 
 
 
 
 
 
 
(unaudited)
Expected volatility
50% - 54%
 
43% - 59%
 
50% - 54%
 
43% - 59%
Expected term (in years)
0.5 - 1.0
 
0.5 - 1.0
 
0.5 - 1.0
 
0.5 - 1.0
Risk-free interest rate
0.17% - 0.18%
 
1.95% - 2.05%
 
0.17% - 0.18%
 
1.95% - 2.05%
Expected dividend yield
—

 
—

 
—

 
—
 
 
 
 
 
 
 
 

During the three and six months ended July 31, 2020, the Company’s employees purchased 127,734 shares of its Class A common stock under the ESPP. The shares were purchased at a weighted-average purchase price of $100.38 per share, with total proceeds of $12.8 million.
As of July 31, 2020, there was $4.1 million of unrecognized stock-based compensation expense related to the ESPP that is expected to be recognized over an average vesting period of 0.6 years.
v3.20.2
Income Taxes
 6 Months Ended
Jul. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
For the three and six months ended July 31, 2020, the Company recorded a tax benefit of $0.4 million and $0.8 million on pretax losses of $60.5 million and $118.6 million, respectively. The effective tax rate for the three and six months ended July 31, 2020 was 0.7%. The effective tax rate differs from the statutory rate primarily as a result of not recognizing deferred tax assets for U.S. losses due to a full valuation allowance against U.S. deferred tax assets and excess tax benefits from stock-based compensation in the United Kingdom. The tax benefit was partially offset by income tax expense in profitable foreign jurisdictions and U.S. state taxes.
For the three and six months ended July 31, 2019, the Company recorded a tax benefit of $1.5 million and $2.6 million on pretax losses of $44.5 million and $97.6 million, respectively. The effective tax rate for the three and six months ended July 31, 2019 was 3.3% and 2.7%, respectively. The effective tax rate differs from the statutory rate primarily as a result of not recognizing deferred tax assets for U.S. losses due to a full valuation allowance against U.S. deferred tax assets, release of the valuation allowance in the United States in connection with the Azuqua acquisition and excess tax benefits from stock-based compensation in the United Kingdom. The tax benefits were partially offset by income tax expense in profitable foreign jurisdictions and U.S. state taxes.
On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act). The CARES Act provides numerous tax provisions and other stimulus measures, including temporary changes regarding the prior and future use of net operating losses, temporary changes to the prior and future limitations on interest deductions, temporary suspension of certain payment requirements for the employer portion of Social Security taxes, technical corrections from prior tax legislation for tax depreciation of certain qualified improvement property, and the creation of certain refundable employee retention credits. The Company does not expect there to be a material tax impact on its condensed consolidated financial statements at this time, and will continue to assess the implications of the CARES Act and its continuing developments and interpretations.
v3.20.2
Net Loss Per Share
 6 Months Ended
Jul. 31, 2020
Earnings Per Share [Abstract]  
Net Loss Per Share Net Loss Per Share
The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data):  
 
Three Months Ended July 31,
 
Six Months Ended July 31,
 
2020
 
2019
 
2020
 
2019
 
Class A
 
Class B
 
Class A
 
Class B
 
Class A
 
Class B
 
Class A
 
Class B
 
(unaudited)
Numerator:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loss
$
(56,090
)
 
$
(4,010
)
 
$
(39,250
)
 
$
(3,730
)
 
$
(109,774
)
 
$
(7,988
)
 
$
(86,516
)
 
$
(8,430
)
Denominator:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average shares outstanding - basic and diluted
117,891

 
8,428

 
105,049

 
9,984

 
116,449

 
8,473

 
103,917

 
10,125

Net loss per share, basic and diluted
$
(0.48
)
 
$
(0.48
)
 
$
(0.37
)
 
$
(0.37
)
 
$
(0.94
)
 
$
(0.94
)
 
$
(0.83
)
 
$
(0.83
)

As the Company was in a loss position for all periods presented, basic net loss per share is the same as diluted net loss per share as the inclusion of all potential common shares 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 (in thousands):  
 
As of July 31,
 
2020
 
2019
 
(unaudited)
Issued and outstanding stock options
9,918

 
14,587

Unvested RSUs issued and outstanding
5,262

 
5,401

Unvested restricted stock awards issued and outstanding
—

 
177

Unvested shares subject to repurchase
1

 
14

Shares committed under the ESPP
141

 
215

Shares related to the 2023 Notes
1,048

 
7,134

Shares subject to warrants related to the issuance of the 2023 Notes
1,048

 
7,134

Shares related to the 2025 Notes
5,617

 
—

Shares related to the 2026 Notes
4,820

 
—

 
27,855

 
34,662


The Company uses the if-converted method for calculating any potential dilutive effect of the conversion options embedded in the Notes on diluted net income per share, if applicable. The conversion options of the 2023, 2025 and 2026 Notes are dilutive in periods of net income on a weighted average basis using an assumed conversion date equal to the later of the beginning of the reporting period and the date of issuance of the respective Notes. The exercise rights of the Warrants will have a dilutive impact on net income per share of common stock under the treasury-stock method when the average market price per share of the Company’s Class A common stock for a given period exceeds the conversion price of $68.06 per share. During the three and six months ended July 31, 2020, the average price per share of the Company’s Class A common stock exceeded the exercise price of the Warrants; however, since the Company is in a net loss position, there was no dilutive effect during any period presented.
v3.20.2
Accounting Standards and Significant Accounting Policies (Policies)
 6 Months Ended
Jul. 31, 2020
Accounting Policies [Abstract]  
Basis of Presentation The accompanying unaudited condensed consolidated financial statements, which include the accounts of the Company and its wholly owned subsidiaries, have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP).
Principles of Consolidation All intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated balance sheet as of January 31, 2020, included herein, was derived from the audited financial statements as of that date. The unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the results of operations for the interim periods presented, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year ending January 31, 2021 or any future period.
Fiscal Period The Company’s fiscal year ends on January 31. References to fiscal 2021, for example, refer to the fiscal year ending January 31, 2021.
Use of Estimates
The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. The Company bases its estimates on historical experience and on other assumptions that its management believes are reasonable under the circumstances. Actual results could vary from those estimates. The Company’s most significant estimates include the stand alone selling price (SSP) for each distinct performance obligation included in customer contracts with multiple performance obligations, the determination of the period of benefit for deferred commissions, the determination of the effective interest rate of the liability components of its convertible senior notes, the determination of the incremental borrowing rate used for operating lease liabilities, the valuation of deferred income tax assets, and the valuation of acquired intangible assets.
In March 2020, the World Health Organization (WHO) declared the outbreak of the novel coronavirus (COVID-19) a pandemic, which continues to spread across the globe. The Company considered the impact of COVID-19 on the assumptions and estimates used and determined that there were no material adverse impacts on the condensed consolidated financial statements for the three and six months ended July 31, 2020. As events continue to evolve and additional information becomes available, our assumptions and estimates may change materially in future periods.
Short-Term Investments
The Company’s short-term investments comprise U.S. treasury securities and corporate debt securities. The Company determines the appropriate classification of its short-term investments at the time of purchase and reevaluates such designation at each balance sheet date. The Company has classified and accounted for its short-term investments as available-for-sale securities as the Company may sell these securities at any time for use in its current operations or for other purposes, even prior to maturity. As a result, short-term investments, including securities with stated maturities beyond twelve months, are classified within current assets in the consolidated balance sheets.
Available-for-sale securities are recorded at fair value each reporting period and are periodically evaluated for unrealized losses. For unrealized losses in securities that the Company intends to hold and will not more likely than not be required to sell before recovery, the Company further evaluates whether declines in fair value below amortized cost are due to credit or non-credit related factors.
The Company considers credit related impairments to be changes in value that are driven by a change in the creditor’s ability to meet its payment obligations, and records an allowance and recognizes a corresponding loss in interest income and other, net when the impairment is incurred. Unrealized non-credit related losses and unrealized gains are reported as a separate component of accumulated other comprehensive loss in the condensed consolidated balance sheets until realized. Realized gains and losses are determined based on the specific identification method and are reported in interest income and other, net in the condensed consolidated statements of operations.
Accounts Receivable and Allowances
Accounts receivable are recorded at the invoiced amount, net of allowances. These allowances are based on the Company’s assessment of the collectibility of accounts by considering the age of each outstanding invoice, the collection history of each customer, and an evaluation of current expected risk of credit loss based on current conditions and reasonable and supportable forecasts of future economic conditions over the life of the receivable. We assess collectibility by reviewing accounts receivable on an aggregated basis where similar characteristics exist and on an individual basis when we identify specific customers with known disputes or collectibility issues. Amounts deemed uncollectible are recorded as an allowance in the condensed consolidated balance sheets with an offsetting decrease in deferred revenue or a charge to general and administrative expense in the condensed consolidated statements of operations.
As of July 31, 2020, allowances reflect increased collectibility and concession concerns stemming from business and market disruption caused by COVID-19 and may fluctuate materially in future periods as the duration and severity of the impact of the COVID-19 pandemic remains uncertain.
Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Adopted
Recently Adopted Accounting Pronouncements
In June 2016, the FASB issued ASU 2016-13, which changes the existing incurred loss impairment model for financial assets held at amortized cost. The new model uses a forward-looking expected loss method to calculate credit loss estimates. ASU 2016-13 also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in earlier recognition of credit losses. The Company adopted the requirements of ASU 2016-13 as of February 1, 2020 on a modified retrospective basis. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements.
In August 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (ASU 2018-15), which requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in Accounting Standards Codification 350-40 to determine which implementation costs to defer and recognize as an asset. The Company adopted the requirements of ASU 2018-15 as of February 1, 2020 on a prospective basis. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements.
In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (ASU 2019-12), as part of its Simplification Initiative to reduce the cost and complexity in accounting for income taxes. ASU 2019-12 removes certain exceptions related to the approach for intraperiod tax allocation and clarifies the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The guidance is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. The Company early adopted ASU 2019-12 as of February 1, 2020 on a prospective basis. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements.
Recent Accounting Pronouncements Not Yet Adopted
In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (ASU 2020-06), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. Among other changes, ASU 2020-06 removes from U.S. GAAP the liability and equity separation model for convertible instruments with a cash conversion feature, and as a result, after adoption, entities will no longer separately present in equity an embedded conversion feature for such debt. Similarly, the embedded conversion feature will no longer be amortized into income as interest expense over the life of the instrument. Instead, entities will account for a convertible debt instrument wholly as debt unless (1) a convertible instrument contains features that require bifurcation as a derivative under ASC Topic 815, Derivatives and Hedging, or (2) a convertible debt instrument was issued at a substantial premium. Among other potential impacts, this change is expected to reduce reported interest expense, increase reported net income, and result in a reclassification of certain conversion feature balance sheet amounts from stockholders’ equity to liabilities as it relates to the Company’s convertible senior notes. Additionally, ASU 2020-06 requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share (EPS), which is consistent with the Company’s accounting treatment under the current standard. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted for fiscal years beginning after December 15, 2020, and can be adopted on either a fully retrospective or modified retrospective basis. The Company is currently evaluating the timing, method of adoption and overall impact of this standard on its consolidated financial statements.
v3.20.2
Cash Equivalents and Short-term Investments (Tables)
 6 Months Ended
Jul. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
Schedule of Amortized Costs, Unrealized Gains and Losses and Estimated Fair Value of Cash Equivalents and Short-term Investments
The amortized cost, unrealized gain (loss) and estimated fair value of the Company’s cash equivalents and short-term investments as of July 31, 2020 and January 31, 2020 were as follows (in thousands):  
 
As of July 31, 2020
 
Amortized
Cost
 
Unrealized
Gain
 
Unrealized
Loss
 
Estimated
Fair Value 
 
(unaudited)
Cash equivalents:
 
 
 
 
 
 
 
Money market funds
$
857,921

 
$
—

 
$
—

 
$
857,921

Total cash equivalents
857,921

 
—

 
—

 
857,921

Short-term investments:
 

 
 

 
 

 
 

U.S. treasury securities
1,142,143

 
3,376

 
(39
)
 
1,145,480

Corporate debt securities
410,369

 
1,484

 
(54
)
 
411,799

Total short-term investments
1,552,512

 
4,860

 
(93
)
 
1,557,279

Total
$
2,410,433

 
$
4,860

 
$
(93
)
 
$
2,415,200

 
As of January 31, 2020
 
Amortized
Cost
 
Unrealized
Gain
 
Unrealized
Loss
 
Estimated
Fair Value 
Cash equivalents:
 
 
 
 
 
 
 
Money market funds
$
416,584

 
$
—

 
$
—

 
$
416,584

U.S. treasury securities
19,996

 
—

 
—

 
19,996

Total cash equivalents
436,580

 
—

 
—

 
436,580

Short-term investments:
 
 
 

 
 

 
 

U.S. treasury securities
575,920

 
686

 
(8
)
 
576,598

Corporate debt securities
305,859

 
519

 
—

 
306,378

Total short-term investments
881,779

 
1,205

 
(8
)
 
882,976

Total
$
1,318,359

 
$
1,205

 
$
(8
)
 
$
1,319,556
Schedule of Contractual Maturities of Short-term Investments
The following table presents the contractual maturities of the Company’s short-term investments as of July 31, 2020 (in thousands):
 
As of July 31, 2020
 
Amortized
Cost
 
Estimated
Fair Value
 
(unaudited)
Due within one year
$
1,051,614

 
$
1,055,302

Due between one to five years
500,898

 
501,977

 Total
$
1,552,512

 
$
1,557,279
v3.20.2
Fair Value Measurements (Tables)
 6 Months Ended
Jul. 31, 2020
Fair Value Disclosures [Abstract]  
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table presents information about the Company’s financial assets that were measured at fair value on a recurring basis using the above input categories (in thousands):  
 
As of July 31, 2020
 
Level 1
 
Level 2 
 
Level 3
 
Total
 
(unaudited)
Assets:
 
 
 
 
 
 
 
Cash equivalents:
 
 
 
 
 
 
 
Money market funds
$
857,921

 
$
—

 
$
—

 
$
857,921

Total cash equivalents
857,921

 
—

 
—

 
857,921

Short-term investments:
 

 
 

 
 

 
 

U.S. treasury securities
—

 
1,145,480

 
—

 
1,145,480

Corporate debt securities
—

 
411,799

 
—

 
411,799

Total short-term investments
—

 
1,557,279

 
—

 
1,557,279

Total cash equivalents and short-term investments
$
857,921

 
$
1,557,279

 
$
—

 
$
2,415,200

 
As of January 31, 2020
 
Level 1
 
Level 2 
 
Level 3
 
Total
Assets:
 
 
 
 
 
 
 
Cash equivalents:
 
 
 
 
 
 
 
Money market funds
$
416,584

 
$
—

 
$
—

 
$
416,584

U.S. treasury securities
—

 
19,996

 
—

 
19,996

Total cash equivalents
416,584

 
19,996

 
—

 
436,580

Short-term investments:
 

 
 

 
 

 
 

U.S. treasury securities
—

 
576,598

 
—

 
576,598

Corporate debt securities
—

 
306,378

 
—

 
306,378

Total short-term investments
—

 
882,976

 
—

 
882,976

Total cash equivalents and short-term investments
$
416,584

 
$
902,972

 
$
—

 
$
1,319,556
Schedule of Carrying Amounts and Estimated Fair Values of Convertible Note
The following table presents the carrying amounts and estimated fair values of our financial instruments that are not recorded at fair value on the condensed consolidated balance sheets (in thousands):
 
As of July 31, 2020
 
Net Carrying Amount (1)
 
Estimated
Fair Value 
 
(unaudited)
2023 convertible senior notes
$
44,242

 
$
219,886

2025 convertible senior notes
$
868,327

 
$
1,417,220

2026 convertible senior notes
$
845,491

 
$
1,341,487


(1)  
Before unamortized debt issuance costs.
v3.20.2
Goodwill and Intangible Assets, net (Tables)
 6 Months Ended
Jul. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Intangible Assets, net
Intangible assets consisted of the following (in thousands):  
 
As of July 31, 2020
 
(unaudited)
 
Gross
 
Accumulated Amortization
 
Write-offs
 
Net
Capitalized internal-use software costs
$
27,837

 
$
(17,138
)
 
$
—

 
$
10,699

Purchased developed technology
28,800

 
(9,508
)
 
—

 
19,292

Software licenses
1,112

 
(1,072
)
 
—

 
40

 
$
57,749

 
$
(27,718
)
 
$
—

 
$
30,031

 
As of January 31, 2020
 
Gross
 
Accumulated Amortization
 
Write-offs
 
Net
Capitalized internal-use software costs
$
24,890

 
$
(14,828
)
 
$
(119
)
 
$
9,943

Purchased developed technology
28,800

 
(6,321
)
 
—

 
22,479

Software licenses
1,112

 
(1,005
)
 
—

 
107

 
$
54,802

 
$
(22,154
)
 
$
(119
)
 
$
32,529
v3.20.2
Convertible Senior Notes, Net (Tables)
 6 Months Ended
Jul. 31, 2020
Debt Disclosure [Abstract]  
Schedule of Interest Expense The following table sets forth total interest expense recognized related to the 2023 Notes (in thousands):
 
Three Months Ended July 31,
 
Six Months Ended July 31,
 
2020
 
2019
 
2020
 
2019
 
(unaudited)
Contractual interest expense
$
52

 
$
215

 
$
127

 
$
431

Amortization of debt issuance costs
90

 
329

 
217

 
648

Amortization of debt discount
958

 
3,759

 
2,328

 
7,465

Total
$
1,100

 
$
4,303

 
$
2,672

 
$
8,544


The following table sets forth total interest expense recognized related to the 2025 Notes (in thousands):
 
Three Months Ended
 
Six Months Ended
 
July 31, 2020
 
(unaudited)
Contractual interest expense
$
331

 
$
662

Amortization of debt issuance costs
518

 
1,024

Amortization of debt discount
8,440

 
16,794

Total
$
9,289

 
$
18,480


The following table sets forth total interest expense recognized related to the 2026 Notes (in thousands):
 
 
Three and Six Months Ended
 
 
July 31, 2020
 
 
(unaudited)
Contractual interest expense
 
$
575

Amortization of debt issuance costs
 
165

Amortization of debt discount
 
5,802

Total
 
$
6,542
Schedule of Liability and Equity Component of 2023. 2025 and 2026 Notes
The 2026 Notes, net consisted of the following (in thousands):
 
As of July 31, 2020
 
(unaudited)
Liability component:
 
Principal
$
1,150,000

Less: unamortized debt issuance costs and debt discount
(315,380
)
Net carrying amount
$
834,620

 
 
 
At Issuance
 
(unaudited)
Equity component:
 
2026 Notes
$
310,311

Less: issuance costs
(4,079
)
Carrying amount of the equity component(1)
$
306,232

(1) Included in the condensed consolidated balance sheets within Additional paid-in capital.
The 2023 Notes, net consisted of the following (in thousands):
 
As of July 31, 2020
 
(unaudited)
Liability component:
 
Principal
$
50,665

Less: unamortized debt issuance costs and debt discount
(7,087
)
Net carrying amount
$
43,578

 
 
 
As of July 31, 2020
 
(unaudited)
Equity component:
 
2023 Notes
$
11,743

Less: issuance costs
(341
)
Carrying amount of the equity component(1)
$
11,402

(1) Included in the condensed consolidated balance sheets within Additional paid-in capital.
The 2025 Notes, net consisted of the following (in thousands):
 
As of July 31, 2020
 
(unaudited)
Liability component:
 
Principal
$
1,060,000

Less: unamortized debt issuance costs and debt discount
(205,182
)
Net carrying amount
$
854,818

 
 
 
At Issuance
Equity component:
 
2025 Notes
$
221,387

Less: issuance costs
(4,040
)
Carrying amount of the equity component(1)
$
217,347

(1) Included in the condensed consolidated balance sheets within Additional paid-in capital.
v3.20.2
Leases (Tables)
 6 Months Ended
Jul. 31, 2020
Leases [Abstract]  
Schedule of Operating Lease Costs
Operating lease costs were as follows (in thousands):
 
 
Three Months Ended July 31,
 
Six Months Ended July 31,
 
 
2020
 
2019
 
2020
 
2019
 
 
(unaudited)
Operating lease cost(1)
 
$
8,334

 
$
5,620

 
$
15,704

 
$
11,083

(1) Amounts are presented exclusive of sublease income and include short-term leases, which are immaterial.
Schedule of Maturities of Operating Leases
Maturities of the Company’s operating lease liabilities, which do not include short-term leases, as of July 31, 2020 were as follows (in thousands):
 
 
Operating Leases
 
 
(unaudited)
2021
 
$
12,971

2022
 
35,972

2023
 
36,596

2024
 
37,461

2025
 
35,415

Thereafter
 
99,891

Total lease payments
 
258,306

Less imputed interest
 
(49,616
)
Total operating lease liabilities
 
$
208,690
v3.20.2
Employee Incentive Plans (Tables)
 6 Months Ended
Jul. 31, 2020
Share-based Payment Arrangement [Abstract]  
Schedule of Stock-based Compensation Expense by Statement of Operations Location
Stock-based compensation expense was recorded in the following cost and expense categories in the Company’s condensed consolidated statements of operations (in thousands):  
 
Three Months Ended
July 31,
 
Six Months Ended
July 31,
 
2020
 
2019
 
2020
 
2019
 
(unaudited)
Cost of revenue
 
 
 
 
 
 
 
Subscription
$
5,164

 
$
3,111

 
$
9,139

 
$
5,533

Professional services and other
2,000

 
1,873

 
3,811

 
3,392

Research and development
14,953

 
9,082

 
26,888

 
15,428

Sales and marketing
13,165

 
9,236

 
24,325

 
16,022

General and administrative
13,112

 
7,972

 
21,959

 
13,584

Total
$
48,394

 
$
31,274

 
$
86,122

 
$
53,959
Schedule of Shares of Common Stock Reserved for Future Issuance
Shares of common stock reserved for future issuance were as follows:
 
As of
 
July 31, 2020
 
(unaudited)
Stock options and unvested RSUs outstanding
15,180,332

Available for future stock option and RSU grants
20,798,312

Available for ESPP
4,752,501

 
40,731,145
Schedule of Stock Option Activity
A summary of the Company’s stock option activity and related information was as follows:  
 
Number of
Options 
 
Weighted-
Average
Exercise
Price 
 
Weighted-
Average
Remaining
Contractual
Term (Years)
 
Aggregate
Intrinsic 
Value
(in thousands)
Outstanding as of January 31, 2020
12,359,302

 
$
11.82

 
6.2
 
$
1,436,487

Granted
399,936

 
144.58

 
 
 
 
Exercised
(2,705,093
)
 
10.17

 
 
 
 
Canceled
(135,864
)
 
19.68

 
 
 
 
Outstanding as of July 31, 2020 (unaudited)
9,918,281

 
$
17.52

 
6.0
 
$
2,017,986

As of July 31, 2020
 
 
 
 
 
 
 
Vested and exercisable (unaudited)
7,606,991

 
$
9.43

 
5.6
 
$
1,609,285
Schedule of Nonvested Restricted Stock Units Activity
A summary of the Company’s RSU activities and related information was as follows:  
 
Number of
RSUs
 
Weighted-
Average
Grant Date Fair Value Per Share
Outstanding as of January 31, 2020
4,893,241

 
$
77.99

Granted
1,779,276

 
159.92

Vested
(1,156,701
)
 
78.72

Forfeited
(253,765
)
 
79.89

Outstanding as of July 31, 2020 (unaudited)
5,262,051

 
$
105.44
Schedule of ESPP Black-Scholes Option Pricing Model Estimated Fair Value Assumptions
The Company estimated the fair value of ESPP purchase rights using a Black-Scholes option pricing model with the following assumptions:
 
Three Months Ended July 31,
 
Six Months Ended July 31,
 
2020
 
2019
 
2020
 
2019
 
 
 
 
 
 
 
 
 
(unaudited)
Expected volatility
50% - 54%
 
43% - 59%
 
50% - 54%
 
43% - 59%
Expected term (in years)
0.5 - 1.0
 
0.5 - 1.0
 
0.5 - 1.0
 
0.5 - 1.0
Risk-free interest rate
0.17% - 0.18%
 
1.95% - 2.05%
 
0.17% - 0.18%
 
1.95% - 2.05%
Expected dividend yield
—

 
—

 
—

 
—
 
 
 
 
 
 
 
 
v3.20.2
Net Loss Per Share (Tables)
 6 Months Ended
Jul. 31, 2020
Earnings Per Share [Abstract]  
Schedule of Basic and Diluted Net Loss Per Share
The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data):  
 
Three Months Ended July 31,
 
Six Months Ended July 31,
 
2020
 
2019
 
2020
 
2019
 
Class A
 
Class B
 
Class A
 
Class B
 
Class A
 
Class B
 
Class A
 
Class B
 
(unaudited)
Numerator:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loss
$
(56,090
)
 
$
(4,010
)
 
$
(39,250
)
 
$
(3,730
)
 
$
(109,774
)
 
$
(7,988
)
 
$
(86,516
)
 
$
(8,430
)
Denominator:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average shares outstanding - basic and diluted
117,891

 
8,428

 
105,049

 
9,984

 
116,449

 
8,473

 
103,917

 
10,125

Net loss per share, basic and diluted
$
(0.48
)
 
$
(0.48
)
 
$
(0.37
)
 
$
(0.37
)
 
$
(0.94
)
 
$
(0.94
)
 
$
(0.83
)
 
$
(0.83
)
Schedule of Potentially Dilutive Securities Excluded from Diluted Per Share Calculation Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows (in thousands):  
 
As of July 31,
 
2020
 
2019
 
(unaudited)
Issued and outstanding stock options
9,918

 
14,587

Unvested RSUs issued and outstanding
5,262

 
5,401

Unvested restricted stock awards issued and outstanding
—

 
177

Unvested shares subject to repurchase
1

 
14

Shares committed under the ESPP
141

 
215

Shares related to the 2023 Notes
1,048

 
7,134

Shares subject to warrants related to the issuance of the 2023 Notes
1,048

 
7,134

Shares related to the 2025 Notes
5,617

 
—

Shares related to the 2026 Notes
4,820

 
—

 
27,855

 
34,662
v3.20.2
Business Combinations - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 18, 2019
Apr. 30, 2019
Jul. 31, 2020
Jul. 31, 2019
Jan. 31, 2020
Business Acquisition [Line Items]          
Payments for business acquisition, net of cash acquired     $ 0 $ 44,223  
Goodwill     48,023   $ 48,023
Compensation expense     2,200    
Azuqua, Inc.          
Business Acquisition [Line Items]          
Payments for business acquisition, net of cash acquired $ 44,200        
Cash acquired from acquisition 1,100        
Goodwill 29,900        
Acquisition related costs   $ 3,000      
Azuqua, Inc. | Purchased developed technology          
Business Acquisition [Line Items]          
Purchased developed technology $ 15,700        
Useful life of acquired intangible assets 5 years        
Azuqua and prior acquisitions          
Business Acquisition [Line Items]          
Deferred compensation liability     10,800    
Remaining balance of noncurrent deferred compensation liability     $ 2,600    
Period of recognition of deferred compensation     1 year 7 months 6 days    
v3.20.2
Cash Equivalents and Short-term Investments - Schedule of Amortized Costs, Unrealized Gains and Losses and Estimated Fair Value of Cash Equivalents and Short-term Investments (Details) - USD ($)
$ in Thousands
Jul. 31, 2020
Jan. 31, 2020
Cash Equivalents and Short-term Investments [Abstract]    
Amortized cost $ 2,410,433 $ 1,318,359
Unrealized Gain 4,860 1,205
Unrealized Loss (93) (8)
Estimated Fair Value 2,415,200 1,319,556
Corporate debt securities    
Cash Equivalents and Short-term Investments [Abstract]    
Amortized cost 410,369 305,859
Unrealized Gain 1,484 519
Unrealized Loss (54) 0
Estimated Fair Value 411,799 306,378
U.S. treasury securities    
Cash Equivalents and Short-term Investments [Abstract]    
Amortized cost 1,142,143 575,920
Unrealized Gain 3,376 686
Unrealized Loss (39) (8)
Estimated Fair Value 1,145,480 576,598
Cash Equivalents    
Cash Equivalents and Short-term Investments [Abstract]    
Amortized cost 857,921 436,580
Unrealized Gain 0 0
Unrealized Loss 0 0
Estimated Fair Value 857,921 436,580
Cash Equivalents | Money market funds    
Cash Equivalents and Short-term Investments [Abstract]    
Amortized cost 857,921 416,584
Unrealized Gain 0 0
Unrealized Loss 0 0
Estimated Fair Value 857,921 416,584
Cash Equivalents | U.S. treasury securities    
Cash Equivalents and Short-term Investments [Abstract]    
Amortized cost   19,996
Unrealized Gain   0
Unrealized Loss   0
Estimated Fair Value   19,996
Short-term Investments    
Cash Equivalents and Short-term Investments [Abstract]    
Amortized cost 1,552,512 881,779
Unrealized Gain 4,860 1,205
Unrealized Loss (93) (8)
Estimated Fair Value $ 1,557,279 $ 882,976
v3.20.2
Cash Equivalents and Short-term Investments - Schedule of Contractual Maturities of Short-term Investments (Details) - USD ($)
$ in Thousands
Jul. 31, 2020
Jan. 31, 2020
Amortized Cost    
Amortized cost $ 2,410,433 $ 1,318,359
Estimated Fair Value    
Estimated fair value 2,415,200 1,319,556
Short-term Investments    
Amortized Cost    
Amortized cost, due within one year 1,051,614  
Amortized cost, due between one to five years 500,898  
Amortized cost 1,552,512 881,779
Estimated Fair Value    
Estimated fair value, due within one year 1,055,302  
Estimated fair value, due between one to five years 501,977  
Estimated fair value $ 1,557,279 $ 882,976
v3.20.2
Cash Equivalents and Short-term Investments - Narrative (Details)
 3 Months Ended 6 Months Ended 12 Months Ended
Jul. 31, 2020
USD ($)
investment
Jul. 31, 2019
USD ($)
Jul. 31, 2020
USD ($)
investment
Jul. 31, 2019
USD ($)
Jan. 31, 2020
USD ($)
investment
Investments, Debt and Equity Securities [Abstract]          
Short-term Investments $ 15,600,000   $ 15,600,000   $ 0
Interest receivable $ 7,600,000   $ 7,600,000   $ 5,700,000
Number of short-term investments in unrealized loss positions (in investments) | investment 37   37   7
Gross unrealized gains or losses from available-for-sale securities $ 0 $ 0 $ 0 $ 0  
Realized gains or losses reclassified out of accumulated other comprehensive income $ 0 $ 0 0 $ 0  
Other-than-temporary impairment short term investment     $ 0   $ 0
v3.20.2
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($)
$ in Thousands
Jul. 31, 2020
Jan. 31, 2020
Assets:    
Cash equivalents, fair value $ 857,921 $ 436,580
Short term investments, fair value 1,557,279 882,976
Total cash equivalents and short-term investments 2,415,200 1,319,556
U.S. treasury securities    
Assets:    
Cash equivalents, fair value   19,996
Short term investments, fair value 1,145,480 576,598
Corporate debt securities    
Assets:    
Short term investments, fair value 411,799 306,378
Money market funds    
Assets:    
Cash equivalents, fair value 857,921 416,584
Level 1    
Assets:    
Cash equivalents, fair value 857,921 416,584
Short term investments, fair value 0 0
Total cash equivalents and short-term investments 857,921 416,584
Level 1 | U.S. treasury securities    
Assets:    
Cash equivalents, fair value   0
Short term investments, fair value 0 0
Level 1 | Corporate debt securities    
Assets:    
Short term investments, fair value 0 0
Level 1 | Money market funds    
Assets:    
Cash equivalents, fair value 857,921 416,584
Level 2    
Assets:    
Cash equivalents, fair value 0 19,996
Short term investments, fair value 1,557,279 882,976
Total cash equivalents and short-term investments 1,557,279 902,972
Level 2 | U.S. treasury securities    
Assets:    
Cash equivalents, fair value   19,996
Short term investments, fair value 1,145,480 576,598
Level 2 | Corporate debt securities    
Assets:    
Short term investments, fair value 411,799 306,378
Level 2 | Money market funds    
Assets:    
Cash equivalents, fair value 0 0
Level 3    
Assets:    
Cash equivalents, fair value 0 0
Short term investments, fair value 0 0
Total cash equivalents and short-term investments 0 0
Level 3 | U.S. treasury securities    
Assets:    
Cash equivalents, fair value   0
Short term investments, fair value 0 0
Level 3 | Corporate debt securities    
Assets:    
Short term investments, fair value 0 0
Level 3 | Money market funds    
Assets:    
Cash equivalents, fair value $ 0 $ 0
v3.20.2
Fair Value Measurements - Schedule of Carrying Amounts and Estimated Fair Values of Convertible Note (Details) - Senior Notes
$ in Thousands
Jul. 31, 2020
USD ($)
Net Carrying Amount | Convertible Senior Notes Due 2023  
Debt Instrument [Line Items]  
Convertible senior notes $ 44,242
Net Carrying Amount | Convertible Senior Notes Due 2025  
Debt Instrument [Line Items]  
Convertible senior notes 868,327
Net Carrying Amount | Convertible Senior Notes Due 2026  
Debt Instrument [Line Items]  
Convertible senior notes 845,491
Estimated Fair Value | Convertible Senior Notes Due 2023  
Debt Instrument [Line Items]  
Convertible senior notes 219,886
Estimated Fair Value | Convertible Senior Notes Due 2025  
Debt Instrument [Line Items]  
Convertible senior notes 1,417,220
Estimated Fair Value | Convertible Senior Notes Due 2026  
Debt Instrument [Line Items]  
Convertible senior notes $ 1,341,487
v3.20.2
Fair Value Measurements - Narrative (Details)
$ / shares in Units, $ in Thousands
Jul. 31, 2020
USD ($)
$ / shares
Debt Instrument [Line Items]  
Closing price of common stock (in dollars per share) | $ / shares $ 220.98
Convertible Senior Notes Due 2023 | Senior Notes  
Debt Instrument [Line Items]  
Aggregate principal amount $ 50,665
Convertible Senior Notes Due 2025 | Senior Notes  
Debt Instrument [Line Items]  
Aggregate principal amount 1,060,000
Convertible Senior Notes Due 2026 | Senior Notes  
Debt Instrument [Line Items]  
Aggregate principal amount $ 1,150,000
v3.20.2
Deferred Commissions (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jul. 31, 2020
Jul. 31, 2019
Jul. 31, 2020
Jul. 31, 2019
Revenue from Contract with Customer [Abstract]        
Sales commissions capitalized as contract costs $ 18,400,000 $ 11,600,000 $ 30,300,000 $ 21,400,000
Amortization of contract costs $ 9,400,000 $ 6,900,000 18,100,000 13,200,000
Impairment loss related to costs capitalized     $ 0 $ 0
v3.20.2
Goodwill and Intangible Assets, net - Narrative (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jul. 31, 2020
Jul. 31, 2019
Jul. 31, 2020
Jul. 31, 2019
Jan. 31, 2020
Finite-Lived Intangible Assets [Line Items]          
Goodwill $ 48,023,000   $ 48,023,000   $ 48,023,000
Goodwill impairments 0 $ 0 0 $ 0  
Capitalized internal-use software 1,800,000 1,200,000 3,100,000 1,700,000  
Intangible amortization expense $ 2,800,000 $ 3,000,000.0 $ 5,600,000 $ 5,100,000  
Purchased developed technology          
Finite-Lived Intangible Assets [Line Items]          
Useful life of purchased developed technology     3 years 6 months    
v3.20.2
Goodwill and Intangible Assets, net - Schedule of Intangible Assets (Details) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jul. 31, 2020
Jan. 31, 2020
Finite-Lived Intangible Assets [Line Items]    
Gross $ 57,749 $ 54,802
Accumulated Amortization (27,718) (22,154)
Write-offs 0 (119)
Net 30,031 32,529
Capitalized internal-use software costs    
Finite-Lived Intangible Assets [Line Items]    
Gross 27,837 24,890
Accumulated Amortization (17,138) (14,828)
Write-offs 0 (119)
Net 10,699 9,943
Purchased developed technology    
Finite-Lived Intangible Assets [Line Items]    
Gross 28,800 28,800
Accumulated Amortization (9,508) (6,321)
Write-offs 0 0
Net 19,292 22,479
Software licenses    
Finite-Lived Intangible Assets [Line Items]    
Gross 1,112 1,112
Accumulated Amortization (1,072) (1,005)
Write-offs 0 0
Net $ 40 $ 107
v3.20.2
Deferred Revenue and Performance Obligations - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 31, 2020
Jul. 31, 2019
Jul. 31, 2020
Jul. 31, 2019
Revenue from Contract with Customer [Abstract]        
Revenue recognized that was included in the contract liability balance $ 165.0 $ 113.1 $ 261.9 $ 174.9
v3.20.2
Deferred Revenue and Performance Obligations - Performance Obligations (Details)
$ in Millions
Jul. 31, 2020
USD ($)
Revenue from Contract with Customer [Abstract]  
Revenue from remaining performance obligations $ 1,426.7
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-08-01  
Revenue from Contract with Customer [Abstract]  
Revenue from remaining performance obligations $ 684.5
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation, percentage 48.00%
Performance obligations expected to be satisfied, expected timing 12 months
v3.20.2
Convertible Senior Notes, Net - Convertible Senior Notes (Details)
$ / shares in Units, shares in Millions
 1 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2020
USD ($)
shares
Sep. 30, 2019
USD ($)
shares
Jul. 31, 2020
USD ($)
$ / shares
Jul. 31, 2019
USD ($)
Jul. 31, 2020
USD ($)
day
$ / shares
Jul. 31, 2019
USD ($)
Jan. 31, 2020
USD ($)
Debt Instrument [Line Items]              
Loss on early extinguishment of debt     $ 2,174,000 $ 0 $ 2,174,000 $ 0  
Convertible Senior Notes Due 2023              
Debt Instrument [Line Items]              
Limitation on sale of common stock due to sale price threshold (in days) | day         80    
Convertible Senior Notes Due 2025              
Debt Instrument [Line Items]              
Redemption price percentage         130.00%    
Convertible Senior Notes Due 2026              
Debt Instrument [Line Items]              
Redemption price percentage         130.00%    
Senior Notes | Convertible Senior Notes Due 2023              
Debt Instrument [Line Items]              
Fixed interest rate     0.25%   0.25%    
Net proceeds from notes         $ 335,000,000.0    
Debt repurchased, total consideration   $ 224,400,000          
Debt repurchase, total consideration $ 260,500,000 604,800,000          
Debt repurchase, cash portion 200,000            
Consideration allocated to debt component 61,800,000 197,700,000          
Consideration allocated to equity component $ 198,700,000 $ 407,100,000          
Effective interest rate 4.90% 4.00% 5.68%   5.68%    
Loss on early extinguishment of debt $ 14,600,000       $ 2,200,000    
Issuance costs 1,000,000.0   $ 10,000,000.0   10,000,000.0   $ 3,800,000
Senior notes 69,900,000            
Face amount of debt instrument $ 59,600,000 $ 183,100,000          
Aggregate principal amount     $ 50,665,000   $ 50,665,000    
Initial conversion rate of common stock         0.0206795    
Conversion price (in dollars per share) | $ / shares     $ 48.36   $ 48.36    
Limitation on sale of common stock (in days) | day         20    
Limitation on sale of common stock due to sale price threshold (in days) | day         30    
Period after consecutive trading days | day         5    
Threshold percentage of stock price trigger         130.00%    
Percentage of closing sale price in excess of convertible notes         98.00%    
Limit within threshold of consecutive trading days | day         20    
Redemption price percentage         100.00%    
Issuance costs attributable to liability component     $ 7,700,000   $ 7,700,000    
Senior Notes | Convertible Senior Notes Due 2025              
Debt Instrument [Line Items]              
Fixed interest rate     0.125%   0.125%    
Proceeds from issuance of debt         $ 1,040,700,000    
Effective interest rate     4.10%   4.10%    
Issuance costs     $ 19,300,000   $ 19,300,000    
Aggregate principal amount     $ 1,060,000,000   $ 1,060,000,000    
Initial conversion rate of common stock         0.0052991    
Conversion price (in dollars per share) | $ / shares     $ 188.71   $ 188.71    
Limitation on sale of common stock due to sale price threshold (in days) | day         30    
Period after consecutive trading days | day         5    
Percentage of closing sale price in excess of convertible notes         98.00%    
Redemption price as a percentage of conversion price         130.00%    
Limit within threshold of consecutive trading days | day         20    
Redemption price percentage         100.00%    
Issuance costs attributable to liability component     $ 15,300,000   $ 15,300,000    
Debt repurchased, face amount     $ 0   $ 0    
Senior Notes | Convertible Senior Notes Due 2026              
Debt Instrument [Line Items]              
Fixed interest rate     0.375%   0.375%    
Proceeds from issuance of debt         $ 1,134,900,000    
Effective interest rate     5.75%   5.75%    
Issuance costs     $ 15,100,000   $ 15,100,000    
Aggregate principal amount     $ 1,150,000,000   $ 1,150,000,000    
Initial conversion rate of common stock         0.0041912    
Conversion price (in dollars per share) | $ / shares     $ 238.60   $ 238.60    
Limitation on sale of common stock due to sale price threshold (in days) | day         30    
Period after consecutive trading days | day         5    
Percentage of closing sale price in excess of convertible notes         98.00%    
Redemption price as a percentage of conversion price         130.00%    
Limit within threshold of consecutive trading days | day         20    
Redemption price percentage         100.00%    
Issuance costs attributable to liability component     $ 11,000,000.0   $ 11,000,000.0    
Debt repurchased, face amount     0   0    
Additional Paid-in Capital | Senior Notes | Convertible Senior Notes Due 2023              
Debt Instrument [Line Items]              
Issuance costs attributable to equity component     $ 2,300,000   $ 2,300,000    
Class A Common Stock | Senior Notes | Convertible Senior Notes Due 2023              
Debt Instrument [Line Items]              
Shares of class a common stock transferred (in shares) | shares 1.4 3.0          
v3.20.2
Convertible Senior Notes, Net - Schedule of Interest Expense (Details) - Senior Notes - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jul. 31, 2020
Jul. 31, 2019
Jul. 31, 2020
Jul. 31, 2019
Convertible Senior Notes Due 2023        
Debt Instrument [Line Items]        
Contractual interest expense $ 52 $ 215 $ 127 $ 431
Amortization of debt issuance costs 90 329 217 648
Amortization of debt discount 958 3,759 2,328 7,465
Total 1,100 $ 4,303 2,672 $ 8,544
Convertible Senior Notes Due 2025        
Debt Instrument [Line Items]        
Contractual interest expense 331   662  
Amortization of debt issuance costs 518   1,024  
Amortization of debt discount 8,440   16,794  
Total $ 9,289   18,480  
Convertible Senior Notes Due 2026        
Debt Instrument [Line Items]        
Contractual interest expense     575  
Amortization of debt issuance costs     165  
Amortization of debt discount     5,802  
Total     $ 6,542  
v3.20.2
Convertible Senior Notes, Net - Schedule of Liability and Equity Component of Notes (Details) - Senior Notes
$ in Thousands
Jul. 31, 2020
USD ($)
Convertible Senior Notes Due 2023  
Liability component:  
Principal $ 50,665
Less: unamortized debt issuance costs and debt discount (7,087)
Net carrying amount 43,578
Convertible Senior Notes Due 2025  
Liability component:  
Principal 1,060,000
Less: unamortized debt issuance costs and debt discount (205,182)
Net carrying amount 854,818
Convertible Senior Notes Due 2026  
Liability component:  
Principal 1,150,000
Less: unamortized debt issuance costs and debt discount (315,380)
Net carrying amount 834,620
Additional Paid-in Capital | Convertible Senior Notes Due 2023  
Equity component:  
Equity component 11,743
Less: issuance costs (341)
Carrying amount of the equity component 11,402
Additional Paid-in Capital | Convertible Senior Notes Due 2025  
Equity component:  
Equity component 221,387
Less: issuance costs (4,040)
Carrying amount of the equity component 217,347
Additional Paid-in Capital | Convertible Senior Notes Due 2026  
Equity component:  
Equity component 310,311
Less: issuance costs (4,079)
Carrying amount of the equity component $ 306,232
v3.20.2
Convertible Senior Notes, Net - Note Hedges and Warrants (Details)
$ / shares in Units, shares in Thousands, $ in Thousands
 1 Months Ended 6 Months Ended
Jun. 30, 2020
USD ($)
shares
Sep. 30, 2019
USD ($)
shares
Jul. 31, 2020
USD ($)
day
$ / shares
shares
Jul. 31, 2019
USD ($)
shares
Debt Instrument [Line Items]        
Payments for repurchase of Warrants | $     $ 175,399 $ 0
Antidilutive securities excluded from computation of earnings per share (in shares) | shares     27,855 34,662
Purchase of capped call on convertible debt | $     $ 133,975 $ 0
Convertible Senior Notes Due 2023        
Debt Instrument [Line Items]        
Shares issuable under warrants granted (in shares) | shares 1,400 4,600    
Number of warrants issued subject to anti-dilution adjustments (in shares) | shares     1,000  
Limitation on sale of common stock due to sale price threshold (in days) | day     80  
Value of shares issuable under warrants granted (in dollars per share) | $ / shares     $ 68.06  
Proceeds from issuance of warrants related to 2023 convertible senior notes | $     $ 52,400  
Payments for repurchase of Warrants | $ $ 175,400 $ 358,600    
Convertible Senior Notes Due 2025        
Debt Instrument [Line Items]        
Value of shares issuable under warrants granted (in dollars per share) | $ / shares     $ 68.06  
Initial cap price of capped calls (in dollars per share) | $ / shares     $ 255.88  
Purchase of capped call on convertible debt | $     $ 74,100  
Convertible Senior Notes Due 2026        
Debt Instrument [Line Items]        
Value of shares issuable under warrants granted (in dollars per share) | $ / shares     $ 68.06  
Initial cap price of capped calls (in dollars per share) | $ / shares     $ 360.14  
Purchase of capped call on convertible debt | $     $ 134,000  
Senior Notes | Convertible Senior Notes Due 2023        
Debt Instrument [Line Items]        
Shares issuable under warrants granted (in shares) | shares 1,400 4,600 7,100  
Conversion price (in dollars per share) | $ / shares     $ 48.36  
Limit within threshold of consecutive trading days | day     20  
Purchases of hedges related to 2023 convertible senior notes | $     $ 80,000  
Proceeds from hedges related to convertible senior notes | $ $ 195,000 $ 405,900    
Number of warrants issued subject to anti-dilution adjustments (in shares) | shares     7,100  
Limitation on sale of common stock due to sale price threshold (in days) | day     30  
Senior Notes | Convertible Senior Notes Due 2025        
Debt Instrument [Line Items]        
Conversion price (in dollars per share) | $ / shares     $ 188.71  
Limit within threshold of consecutive trading days | day     20  
Limitation on sale of common stock due to sale price threshold (in days) | day     30  
Senior Notes | Convertible Senior Notes Due 2026        
Debt Instrument [Line Items]        
Conversion price (in dollars per share) | $ / shares     $ 238.60  
Limit within threshold of consecutive trading days | day     20  
Limitation on sale of common stock due to sale price threshold (in days) | day     30  
Shares related to convertible senior notes | Convertible Senior Notes Due 2023        
Debt Instrument [Line Items]        
Antidilutive securities excluded from computation of earnings per share (in shares) | shares     1,048 7,134
Shares related to convertible senior notes | Convertible Senior Notes Due 2025        
Debt Instrument [Line Items]        
Antidilutive securities excluded from computation of earnings per share (in shares) | shares     5,617 0
Shares related to convertible senior notes | Convertible Senior Notes Due 2026        
Debt Instrument [Line Items]        
Antidilutive securities excluded from computation of earnings per share (in shares) | shares     4,820 0
v3.20.2
Leases - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 31, 2020
Jul. 31, 2019
Jul. 31, 2020
Jul. 31, 2019
Jan. 31, 2020
Leases [Abstract]          
Weighted average remaining lease term 7 years 4 months 24 days   7 years 4 months 24 days   7 years 10 months 24 days
Weighted average discount rate 5.60%   5.60%   5.70%
Cash payments included in the measurement of operating lease liabilities $ 7.8 $ 2.4 $ 15.0 $ 4.8  
Undiscounted future payments under operating leases that have not yet commenced $ 4.7   $ 4.7    
Operating lease terms for leases that have not yet commenced 4 years   4 years    
v3.20.2
Leases - Schedule of Operating Lease Costs (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jul. 31, 2020
Jul. 31, 2019
Jul. 31, 2020
Jul. 31, 2019
Lease cost:        
Operating lease cost $ 8,334 $ 5,620 $ 15,704 $ 11,083
v3.20.2
Leases - Schedule of Maturities of Operating Leases (Details)
$ in Thousands
Jul. 31, 2020
USD ($)
Lessee, Operating Lease, Liability, Payment, Due [Abstract]  
2021 $ 12,971
2022 35,972
2023 36,596
2024 37,461
2025 35,415
Thereafter 99,891
Total lease payments 258,306
Less imputed interest (49,616)
Total operating lease liabilities $ 208,690
v3.20.2
Commitments and Contingencies - Narrative (Details) - Letter of Credit - USD ($)
Jul. 31, 2020
Jan. 31, 2020
Other Commitments [Line Items]    
Letters of credit issued and outstanding $ 11,200,000 $ 11,900,000
Draws on line of credit $ 0 $ 0
v3.20.2
Employee Incentive Plans - Schedule of Stock-based Compensation Expense by Statement of Operations Location (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jul. 31, 2020
Jul. 31, 2019
Jul. 31, 2020
Jul. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock-based compensation expense $ 48,394 $ 31,274 $ 86,122 $ 53,959
Subscription        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock-based compensation expense 5,164 3,111 9,139 5,533
Professional services and other        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock-based compensation expense 2,000 1,873 3,811 3,392
Research and development        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock-based compensation expense 14,953 9,082 26,888 15,428
Sales and marketing        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock-based compensation expense 13,165 9,236 24,325 16,022
General and administrative        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock-based compensation expense $ 13,112 $ 7,972 $ 21,959 $ 13,584
v3.20.2
Employee Incentive Plans - Narrative (Details)
$ / shares in Units, $ in Millions
 3 Months Ended 6 Months Ended
Jul. 31, 2020
USD ($)
$ / shares
shares
Jul. 31, 2020
USD ($)
purchase_period
incentive_plan
$ / shares
shares
Jan. 31, 2020
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of equity incentive plans (in incentive plans) | incentive_plan   2  
Options to purchase common stock outstanding (in shares) | shares 9,918,281 9,918,281 12,359,302
Unrecognized stock-based compensation expense related to stock options | $ $ 41.6 $ 41.6  
Unrecognized stock-based compensation expenses related to unvested RSUs | $ $ 519.4 $ 519.4  
Stock options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted average stock-based compensation recognition period   1 year 6 months  
Restricted stock units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted average stock-based compensation recognition period   2 years 8 months 12 days  
ESPP      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted average stock-based compensation recognition period   7 months 6 days  
Shares of employee purchased Class A common stock (in shares) | shares 127,734 127,734  
Weighted-average purchase price of employee purchased Class A common stock (in dollars per share) | $ / shares $ 100.38 $ 100.38  
Total proceeds from employee purchase of Class A common stock | $ $ 12.8 $ 12.8  
Award offering period   12 months  
Number of purchase periods (in purchase periods) | purchase_period   2  
Unrecognized compensation costs related to unvested restricted stock units | $ $ 4.1 $ 4.1  
Payment award purchase period   6 months  
2017 Equity Incentive Plan | Class A Common Stock      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Options to purchase common stock outstanding (in shares) | shares 1,210,791 1,210,791  
2017 Equity Incentive Plan | Class B Common Stock      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Options to purchase common stock outstanding (in shares) | shares 8,707,490 8,707,490  
v3.20.2
Employee Incentive Plans - Schedule of Common Stock Reserved for Future Issuance (Details)
Jul. 31, 2020
shares
Class of Stock [Line Items]  
Common stock reserved for future issuance and options and unvested RSUs outstanding (in shares) 40,731,145
Stock Options and Restricted Stock Units  
Class of Stock [Line Items]  
Stock options and unvested RSUs outstanding (in shares) 15,180,332
Common stock, reserved for future issuance (in shares) 20,798,312
ESPP  
Class of Stock [Line Items]  
Common stock, reserved for future issuance (in shares) 4,752,501
v3.20.2
Employee Incentive Plans - Schedule of Stock Option Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 6 Months Ended 12 Months Ended
Jul. 31, 2020
Jan. 31, 2020
Number of Options    
Number of options, outstanding beginning of period (in shares) 12,359,302  
Number of options, granted (in shares) 399,936  
Number of options, exercised (in shares) (2,705,093)  
Number of options, canceled (in shares) (135,864)  
Number of options, outstanding end of period (in shares) 9,918,281 12,359,302
Vested and exercisable, number of options (in shares) 7,606,991  
Weighted- Average Exercise Price    
Options outstanding, weighted average exercise price beginning of period (in dollars per share) $ 11.82  
Options granted, weighted average exercise price (in dollars per share) 144.58  
Options exercised, weighted average exercise price (in dollars per share) 10.17  
Options canceled, weighted average exercise price (in dollars per share) 19.68  
Options outstanding, weighted average exercise price end of period (in dollars per share) 17.52 $ 11.82
Vested and exercisable, weighted average exercise price (in dollars per share) $ 9.43  
Additional Disclosures    
Options outstanding, weighted average remaining contractual term 6 years 6 years 2 months 12 days
Options outstanding, aggregate intrinsic value $ 2,017,986 $ 1,436,487
Vested and exercisable, weighted average remaining contractual term 5 years 7 months 6 days  
Vested and exercisable, aggregate intrinsic value $ 1,609,285  
v3.20.2
Employee Incentive Plans - Schedule of Restricted Stock Unit Activity (Details) - Restricted stock units
 6 Months Ended
Jul. 31, 2020
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]  
Beginning balance (in shares) | shares 4,893,241
Granted (in shares) | shares 1,779,276
Vested (in shares) | shares (1,156,701)
Forfeited (in shares) | shares (253,765)
Ending balance (in shares) | shares 5,262,051
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]  
Beginning balance (in dollars per share) | $ / shares $ 77.99
Granted (in dollars per share) | $ / shares 159.92
Vested (in dollars per share) | $ / shares 78.72
Forfeited (in dollars per share) | $ / shares 79.89
Ending balance (in dollars per share) | $ / shares $ 105.44
v3.20.2
Employee Incentive Plans - Schedule of Black-Scholes Option Pricing Model Estimated Fair Value Assumptions (Details)
 3 Months Ended 6 Months Ended
Jul. 31, 2020
Jul. 31, 2019
Jul. 31, 2020
Jul. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Expected dividend yield 0.00% 0.00% 0.00% 0.00%
ESPP        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Expected volatility 50.00% 43.00% 50.00% 43.00%
Expected volatility 54.00% 59.00% 54.00% 59.00%
Risk-free interest rate 0.17% 1.95% 0.17% 1.95%
Risk-free interest rate 0.18% 2.05% 0.18% 2.05%
Minimum | ESPP        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Expected term (in years) 6 months 6 months 6 months 6 months
Maximum | ESPP        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Expected term (in years) 1 year 1 year 1 year 1 year
v3.20.2
Income Taxes - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jul. 31, 2020
Jul. 31, 2019
Jul. 31, 2020
Jul. 31, 2019
Income Tax Disclosure [Abstract]        
Tax expense (benefit) $ (433) $ (1,477) $ (835) $ (2,634)
Pretax losses $ 60,533 $ 44,457 $ 118,597 $ 97,580
Effective income tax rate 0.70% 3.30%   2.70%
v3.20.2
Net Loss Per Share - Schedule of Basic and Diluted Net Loss Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jul. 31, 2020
Jul. 31, 2019
Jul. 31, 2020
Jul. 31, 2019
Numerator:        
Net loss $ (60,100) $ (42,980) $ (117,762) $ (94,946)
Denominator:        
Weighted-average shares outstanding - basic and diluted (in shares) 126,319 115,033 124,922 114,042
Net loss per share, basic and diluted (in dollars per share) $ (0.48) $ (0.37) $ (0.94) $ (0.83)
Class A Common Stock        
Numerator:        
Net loss $ (56,090) $ (39,250) $ (109,774) $ (86,516)
Denominator:        
Weighted-average shares outstanding - basic and diluted (in shares) 117,891 105,049 116,449 103,917
Net loss per share, basic and diluted (in dollars per share) $ (0.48) $ (0.37) $ (0.94) $ (0.83)
Class B Common Stock        
Numerator:        
Net loss $ (4,010) $ (3,730) $ (7,988) $ (8,430)
Denominator:        
Weighted-average shares outstanding - basic and diluted (in shares) 8,428 9,984 8,473 10,125
Net loss per share, basic and diluted (in dollars per share) $ (0.48) $ (0.37) $ (0.94) $ (0.83)
v3.20.2
Net Loss Per Share - Schedule of Potentially Dilutive Securities Excluded from Computation of Diluted Per Share (Details) - shares
shares in Thousands
 6 Months Ended
Jul. 31, 2020
Jul. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share (in shares) 27,855 34,662
Stock options issued and outstanding    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share (in shares) 9,918 14,587
Unvested RSUs issued and outstanding    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share (in shares) 5,262 5,401
Unvested restricted stock awards issued and outstanding    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share (in shares) 0 177
Unvested shares subject to repurchase    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share (in shares) 1 14
Shares committed under the ESPP    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share (in shares) 141 215
Shares related to convertible senior notes | Convertible Senior Notes Due 2023    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share (in shares) 1,048 7,134
Shares related to convertible senior notes | Convertible Senior Notes Due 2025    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share (in shares) 5,617 0
Shares related to convertible senior notes | Convertible Senior Notes Due 2026    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share (in shares) 4,820 0
Shares subject to warrants related to the issuance of convertible senior notes    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share (in shares) 1,048 7,134
v3.20.2
Net Loss Per Share - Narrative (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jul. 31, 2020
Jul. 31, 2019
Jul. 31, 2020
Jul. 31, 2019
Debt Instrument [Line Items]        
Dilutive effect on securities $ 0 $ 0 $ 0 $ 0
Convertible Senior Notes Due 2025        
Debt Instrument [Line Items]        
Value of shares issuable under warrants granted (in dollars per share) $ 68.06   $ 68.06  
Convertible Senior Notes Due 2023        
Debt Instrument [Line Items]        
Value of shares issuable under warrants granted (in dollars per share) 68.06   68.06  
Convertible Senior Notes Due 2026        
Debt Instrument [Line Items]        
Value of shares issuable under warrants granted (in dollars per share) $ 68.06   $ 68.06  
v3.20.2
Label Element Value
Restricted Cash and Cash Equivalents, Noncurrent us-gaap_RestrictedCashAndCashEquivalentsNoncurrent $ 11,693,000
Restricted Cash and Cash Equivalents, Noncurrent us-gaap_RestrictedCashAndCashEquivalentsNoncurrent 11,438,000
Restricted Cash and Cash Equivalents, Current us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue 2,217,000
Restricted Cash and Cash Equivalents, Current us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue $ 307,000