Balance Sheet Components

9 Months Ended

Oct. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

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 and nine months ended October 31, 2020 were $13.1 million and $32.8 million, respectively, and during the three and nine months ended October 31, 2019 were $8.2 million and $24.0 million, respectively. Amortization expense for deferred commissions during the three and nine months ended October 31, 2020 were $6.9 million and $19.2 million, respectively, and for the three and nine months ended October 31, 2019 were $4.9 million and $13.6 million, respectively.

Property and Equipment, Net

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


	October 31, 2020		January 31, 2020
Computer equipment and software	$	71,277	$	56,758
Furniture, fixtures and equipment	1,078		1,028
Leasehold improvements	8,271		6,941
Equipment acquired under capital leases	17,615		11,687
Construction-in-progress	4,001		3,113
Total property and equipment, gross	102,242		79,527
Less accumulated depreciation and amortization	(57,722)		(44,648)
Property and equipment, net	$	44,520	$	34,879

Depreciation and amortization expense during the three and nine months ended October 31, 2020 totaled $4.8 million and $13.1 million, respectively, and during the three and nine months ended October 31, 2019 totaled $3.4 million and $9.7 million, respectively. This depreciation and amortization includes depreciation of assets recorded under capital leases of $1.3 million and $3.2 million for the three and nine months ended October 31, 2020, respectively, and $1.0 million and $2.6 million for the three and nine months ended October 31, 2019, respectively.

Property and equipment located outside the U.S. was $16.8 million and $13.4 million as of October 31, 2020 and January 31, 2020, respectively.

During the fiscal 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):


	October 31, 2020		January 31, 2020
Capital leases, current	$	5,746	$	4,316
Lease exit liability	4,164		—
Federal, state and local taxes	5,565		3,932
Indemnity holdback related to acquisitions	1,710		1,573
Other	13,933		10,447
Accrued expenses and other current liabilities	$	31,118	$	20,268

Accrued Compensation

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


	October 31, 2020		January 31, 2020
Accrued salaries and bonus	$	6,354	$	8,312
Accrued commissions	9,672		11,280
Accrued vacation	4,556		3,906
Employee stock purchase plan	2,352		8,693
Payroll taxes	6,491		4,969
Accrued compensation	$	29,425	$	37,160