Commitments and Contingencies

3 Months Ended

Apr. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments

The Company leases office space under non-cancelable operating leases with various expiration dates through February 2030. For the three months ended April 30, 2021 and 2020, lease costs in relation to long-term leases were approximately $3.5 million and $2.6 million, respectively. For the three months ended April 30, 2021 and 2020, short-term leases costs were approximately $600,000 and $300,000, respectively. Variable lease costs were immaterial for the three months ended April 30, 2021 and 2020. Certain lease agreements include options to renew or terminate the lease, which are not reasonably certain to be exercised and therefore are not factored into the determination of lease payments or the lease right-of-use asset/lease liability.

For the three months ended April 30, 2021 and 2020, cash paid for operating lease liabilities was approximately $3.6 million and $2.7 million, respectively. For the three months ended April 30, 2021 and 2020, right-of-use assets obtained in exchange of lease obligations was approximately $900,000 and $125,000, respectively. As of April 30, 2021, the weighted-average remaining lease term was 3.8 years, and the weighted-average discount rate was 6.2%.

As of April 30, 2021, the remaining maturities of operating lease liabilities and future purchase obligations are as follows (in thousands):


Year Ending January 31,	Operating Lease Obligations		Future Purchase Obligations
2022 (remaining nine months)	$	10,337	$	10,862
2023	12,826		18,692
2024	11,499		4,884
2025	6,155		600
2026	3,010		550
Thereafter	2,301		—
Total payments	46,128		$	35,588
Less imputed interest	(5,030)
Total	$	41,098

The Company's future obligations in the table above primarily includes contractual purchase obligations for hosting services and other services to support the Company's business operations.

Contingencies

The Company may become involved in legal proceedings or be subject to claims arising in the ordinary course of business. Although the results of litigation and claims cannot be predicted with certainty, the Company currently believes that the final outcome of these ordinary course matters will not have a material adverse effect on the Company’s business, operating results, financial condition or cash flows. The Company accrues estimates for resolution of legal and other contingencies when losses are probable and estimable. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors.

Warranties and Indemnifications

The Company’s cloud-based software platform and applications are typically warranted against material decreases in functionality and to perform in a manner consistent with general industry standards and in accordance with the Company’s online documentation under normal use and circumstances.

The Company includes service level commitments to its customers, typically regarding certain levels of uptime reliability and performance and if the Company fails to meet those levels, customers can receive credits and, in some cases, terminate their relationship with the Company. To date, the Company has not incurred any material costs as a result of such commitments.

The Company generally agrees to defend and indemnify its customers against legal claims that the Company’s platform infringes patents, copyrights or other intellectual property rights of third parties. To date, the Company has not been required to make any payment resulting from such infringement claims and has not recorded any related liabilities. In addition, the Company has indemnification agreements with its directors and certain of its officers that require the Company to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. To date, the Company has not incurred any material costs, and not accrued any liabilities in its condensed consolidated financial statements, as a result of these obligations.