Property and Equipment, Net

12 Months Ended

Jan. 31, 2020

Property, Plant and Equipment [Abstract]

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



	January 31, 2020			January 31, 2019
Servers	$	946		$	587
Furniture and fixtures	2,673			2,224
Computer and office equipment	229			174
Purchased software	985			985
Leasehold improvements	19,311			16,958
Construction in process	314			16
Building	—			56,161
Finance lease right-of-use assets	39,411			—
Total property and equipment	63,869			77,105
Less: accumulated depreciation and amortization	(5,553		)	(3,441		)
Property and equipment, net	$	58,316		$	73,664

In December 2017, the Company entered into a lease agreement for 106,230 rentable square feet of office space to accommodate its growing employee base in New York City. As a result of the Company’s involvement during the construction period, whereby the Company had certain indemnification obligations related to the construction, the Company was considered, for accounting purposes only, the owner of the construction project under build-to-suit lease accounting. Accordingly, the Company recorded the estimated fair value of the leased space as an asset, noted in the table above as “Building.” Costs incurred to renovate the new office space were capitalized as “Construction in process” and upon completion, reclassified to the “Building” asset. The Company also recorded a corresponding long-term lease liability. Prior to the adoption of ASC 842, as of January 31, 2019, $55.7 million of our build-to-suit lease asset was included in “Property and equipment, net” and the related $70.2 million financing lease obligation was included in “Other liabilities, non-current” on the consolidated balance sheets. Upon the adoption of ASC 842, this lease was classified as a finance lease, where we derecognized our build-to-suit asset and related liabilities. See Note 2, Summary of Significant Accounting Policies, for the adoption impact of ASC 842 on the consolidated financial statements as of February 1, 2020.

Depreciation and amortization expense related to property and equipment was $2.7 million, $2.9 million and $2.8 million for the years ended January 31, 2020, 2019 and 2018, respectively. Depreciation and amortization expense for the year ended January 31, 2020 excludes amortization with respect to the finance lease right-of-use asset, which is described further in Note 8, Leases.