Income Taxes (Tables)

12 Months Ended

Jan. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Net Income (Loss) before Provision of Income Taxes

The components of the net income before the provision for (benefit from) income taxes were as follows:

	Year Ended January 31,
	2023		2022		2021
	(in thousands)
Domestic	$	196,224	$	1,047,318	$	663,909
Foreign	53,052		54,314		14,125
Total	$	249,276	$	1,101,632	$	678,034

Schedule of Provision of Income Taxes

The provision for (benefit from) income taxes was as follows:

	Year Ended January 31,
	2023		2022		2021
	(in thousands)
Current:
Federal	$	254,505	$	69,853	$	—
State	33,548		20,174		1,023
Foreign	18,473		12,027		3,933
Total current income tax expense	306,526		102,054		4,956
Deferred:
Federal	(173,941)		(293,704)		689
State	16,673		(82,561)		248
Foreign	(3,693)		204		(175)
Total deferred income tax expense	(160,961)		(376,061)		762
Total provision for (benefit from) income taxes	$	145,565	$	(274,007)	$	5,718

Schedule of Provision for Income Taxes

The provision for (benefit from) income taxes differs from the amount computed by applying the statutory federal tax rate as follows:

	Year Ended January 31,
	2023			2022			2021
	(in thousands, except percentages)
Tax at federal statutory rate	$	52,277		$	231,350		$	142,387
State taxes	13,666			24,840			636
Foreign rate differential	1,017			1,830			89
Non-deductible compensation	10,231			—			—
Stock-based compensation	124,631			(135,250)			(302,362)
Permanent Items	9,090			3,971			2,228
Foreign-derived intangible income deduction	(76,686)			(34,131)			—
Research and development credits	(38,127)			(42,973)			(3,170)
Tax uncertainties	2,296			244			(607)
Change in valuation allowance	39,288			(322,231)			165,869
Deferred rate change	2,014			—			—
Other	5,868			(1,658)			648
Total	$	145,565		$	(274,007)		$	5,718
Effective tax rate	58.4		%	(24.9)		%	0.8		%

Schedule of Significant Components of Deferred Income Tax Assets

Significant components of our deferred income tax assets as of January 31, 2023 and 2022 are as follows:

	As of January 31,
	2023		2022
	(in thousands)
Deferred tax assets:
Net operating loss carryforwards	$	14,788	$	21,558
Research and development credit carryforwards	12,792		9,985
Stock-based compensation	116,798		44,490
Accruals and reserves	39,758		14,475
Deferred revenue	303,167		260,322
Capitalized research expenditures	245,708		131,010
Operating lease liabilities	23,140		25,892
Total deferred tax assets	756,151		507,732
Valuation allowance	(53,570)		(12,605)
Total deferred tax assets net of valuation allowance	702,581		495,127
Deferred tax liabilities:
Property and equipment and intangible assets	(36,274)		(26,733)
Deferred contract acquisition costs	(89,839)		(62,814)
Operating right-of-use assets	(19,352)		(23,466)
Total deferred tax liabilities	(145,465)		(113,013)
Net deferred tax assets	$	557,116	$	382,114

Schedule of Reconciliation of Unrecognized Tax Position

A reconciliation of the beginning and ending balance of total unrecognized tax benefits is as follows:

Unrecognized Tax Benefits (in thousands)	Year Ended January 31,
	2023		2022		2021
Balance, beginning of year	$	19,171	$	14,884	$	8,106
Tax Positions taken in prior year:
Gross increases	877		—		314
Gross decreases	—		(3,764)		—
Tax Positions taken in current year:
Gross increases	10,547		8,211		6,001
Gross decreases	—		—		—
Lapse of Statute of Limitations	(191)		(160)		(422)
Acquisitions	—		—		885
Balance, end of year	$	30,404	$	19,171	$	14,884