Balance Sheet Components

3 Months Ended

Apr. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Components

Balance Sheet Components

Deferred Commissions

Sales commissions earned by the sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions for initial contracts are deferred and then amortized on a straight-line basis over a period of benefit that the Company has determined to be five years. The Company determined the period of benefit by taking into consideration its customer contracts, technology and other factors. Sales commissions for renewal contracts (which are not considered commensurate with sales commissions for new revenue contracts) are deferred and amortized on a straight-line basis over the related contractual renewal period. Amortization expense is included in sales and marketing expenses in the unaudited condensed consolidated statements of operations.

Commissions earned and capitalized during the three months ended April 30, 2020 and 2019 were $4.2 million and $6.7 million, respectively. Amortization expense for deferred commissions during the three months ended April 30, 2020 and 2019 were $6.4 million, and $4.2 million, respectively.

Property and Equipment, Net

The table below summarizes property and equipment which consists of the following (in thousands):

	April 30, 2020		January 31, 2020
Computer equipment and software	$	60,052	$	56,758
Furniture, fixtures and equipment	1,066		1,028
Leasehold improvements	6,570		6,941
Equipment acquired under capital leases	11,543		11,687
Construction-in-progress	5,216		3,113
Total property and equipment, gross	84,447		79,527
Less accumulated depreciation and amortization	(48,173)		(44,648)
Property and equipment, net	$	36,274	$	34,879

Depreciation and amortization expense during the three months ended April 30, 2020 and 2019 totaled $4.0 million and $3.1 million, respectively, which includes depreciation of assets recorded under capital leases of $1.0 million and $0.6 million for the three months ended April 30, 2020 and 2019, respectively.

Property and equipment located outside the U.S. was $14.9 million and $13.4 million as of April 30, 2020 and January 31, 2020, respectively.

During the year ended January 31, 2020, the Company recorded a net gain of approximately $4.0 million as a result of the termination of its lease for its former corporate headquarters which included the gain on the reversal of deferred rent of $34.5 million, partially offset by the impairment of property and equipment of $20.7 million and cash payments associated with the termination and other fees of $9.8 million.

Accrued Expenses and Other Current Liabilities

The table below summarizes accrued expenses and other current liabilities which consists of the following (in thousands):

	April 30, 2020		January 31, 2020
Capital leases, current	$	4,341	$	4,316
Income tax liability	2,168		3,932
Indemnity holdback related to acquisitions	2,300		1,573
Other	10,747		10,447
Accrued expenses and other current liabilities	$	19,556	$	20,268

Accrued Compensation

The table below summarizes accrued compensation which consists of the following (in thousands):

	April 30, 2020		January 31, 2020
Accrued salaries and bonuses	$	3,003	$	8,312
Accrued commissions	2,709		11,280
Accrued vacation	3,766		3,906
Employee stock purchase plan	2,140		8,693
Payroll taxes	6,606		4,969
Accrued compensation	$	18,224	$	37,160