Commitments and Contingencies

9 Months Ended

Oct. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Operating Leases

The Company leases certain office and data center facilities which are operating leases that expire between fiscal 2020 to 2028. Certain of the Company's leases include options to renew with terms of up to five years. There have been no material changes to the Company's contractual lease obligations from those disclosed in Item 7 of the Company's Form 10-K for the year ended January 31, 2020 and Form 10-Q for the quarter ended April 30, 2020 except as noted herein.

Rent expense during the three and nine months ended October 31, 2020 was $2.3 million and $11.8 million, respectively, and for the three and nine months ended October 31, 2019 was $3.6 million and $10.8 million, respectively.

During the nine months ended October 31, 2020 the Company exited from its office space in San Mateo and a portion of its office space in Pleasanton, California and recorded lease exit charges of $7.6 million. During the three months ended October 31, 2020 a portion of the office space in Pleasanton, California was sublet to a third party. The office space in San Mateo is currently being marketed for sublease. These lease exit charges are included in general and administrative expense in the unaudited condensed consolidated statements of operations and represent the present value of remaining lease obligation on the cease use dates, that occurred during the second quarter of 2020, net of estimated sublease income.

Warranties, Indemnification, and Contingent Obligations

The Company's arrangements generally include provisions indemnifying customers against liabilities if their customer data is compromised due to a breach of information security, or if the Company's applications or services infringe a third-party's intellectual property rights. To date, the Company has not incurred any costs as a result of such indemnification and has not accrued any liabilities related to such obligations in the unaudited condensed consolidated financial statements.

The Company enters into service level agreements with customers which warrant defined levels of uptime and support response times and permit those customers to receive credits for prepaid amounts in the event that those performance and response levels are not met. To date, the Company has not experienced any significant failures to meet defined levels of performance and response. In connection with the service level agreements, the Company has not incurred any significant costs and has not accrued any liabilities in the unaudited condensed consolidated financial statements. The Company's subscription services agreements also generally include a warranty that the service performs in accordance with the applicable specifications document. The Company's professional services are generally warranted to be performed in a professional manner and in a manner that will comply with the terms of the customer agreements. To date, the Company has not incurred any material costs associated with these warranties.