Business Combinations, Intangible Assets, and Goodwill (Tables)

9 Months Ended

Oct. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Preliminary Allocation of Purchase Price to Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary allocation of purchase consideration to assets acquired and liabilities assumed based on their respective estimated fair values as of the date of acquisition:

	Estimated Fair Value (in thousands)		Estimated Useful Life (in years)
Cash	$	61
Goodwill(1)	146,478
Developed technology intangible asset	35,000		5
Other net tangible liabilities	(612)
Deferred tax liabilities, net(2)	(6,236)
Total	$	174,691

________________

(1)The excess of purchase consideration over the preliminary fair value of identifiable net assets acquired was recorded as goodwill, which is generally not deductible for income tax purposes.

(2)Deferred tax liabilities, net primarily relates to the intangible asset acquired and the amount presented is net of deferred tax assets.

The following table summarizes the preliminary allocation of purchase consideration to assets acquired and liabilities assumed based on their respective estimated fair values as of the date of acquisition:

	Estimated Fair Value (in thousands)		Estimated Useful Life (in years)
Cash and cash equivalents	$	33,914
Goodwill(1)	494,165
Developer community intangible asset	150,000		5
Other net tangible liabilities	(660)
Deferred tax liabilities, net(2)	(26,664)
Total	$	650,755

________________

(1)The excess of purchase consideration over the preliminary fair value of identifiable net assets acquired was recorded as goodwill, which is not deductible for income tax purposes.

(2)Deferred tax liabilities, net primarily relates to the intangible asset acquired and the amount presented is net of deferred tax assets.

Schedule of Business Acquisitions, by Acquisition

The acquisition date fair value of the purchase consideration was $650.8 million, which was comprised of the following (in thousands):

	Estimated Fair Value
Cash	$	211,839
Common stock(1)	438,916
Total	$	650,755

________________

(1)Approximately 1.9 million shares of the Company’s Class A common stock were included in the purchase consideration and the fair values of these shares were determined based on the closing market price of $229.13 per share on the acquisition date.

Business Acquisition, Pro Forma Information

The following unaudited pro forma financial information summarizes the combined results of operations of the Company and both of Applica and Streamlit, as if each had been acquired as of February 1, 2021 (in thousands):

	Pro Forma
	Three Months Ended October 31,				Nine Months Ended October 31,
	2022		2021		2022		2021
	(unaudited)
Revenue	$	557,116	$	334,839	$	1,477,232	$	836,607
Net loss	$	(201,510)	$	(191,273)	$	(650,406)	$	(640,111)

Schedule of Intangible Assets

Intangible assets, net consisted of the following (in thousands):

	October 31, 2022
	Gross		Accumulated Amortization		Net
Finite-lived intangible assets:
Developer community	$	150,000	$	(17,653)	$	132,347
Developed technology	46,332		(7,244)		39,088
Assembled workforce	28,252		(9,252)		19,000
Patents	8,874		(3,970)		4,904
Other	47		(47)		—
Total finite-lived intangible assets	$	233,505	$	(38,166)	$	195,339
Indefinite-lived intangible assets—trademarks					826
Total intangible assets, net					$	196,165

	January 31, 2022
	Gross		Accumulated Amortization		Net
Finite-lived intangible assets:
Assembled workforce	$	28,252	$	(3,941)	$	24,311
Developed technology	11,332		(4,812)		6,520
Patents	8,174		(2,690)		5,484
Other	47		(47)		—
Total finite-lived intangible assets	$	47,805	$	(11,490)	$	36,315
Indefinite-lived intangible assets—trademarks					826
Total intangible assets, net					$	37,141

Schedule of Future Amortization Expense

As of October 31, 2022, future amortization expense is expected to be as follows (in thousands):

	Amount
Fiscal Year Ending January 31,
Reminder of 2023	$	12,124
2024	48,101
2025	47,379
2026	41,249
2027	37,097
Thereafter	9,389
Total	$	195,339

Schedule of Goodwill

Changes in goodwill were as follows (in thousands):

	Amount
Balance—January 31, 2022	$	8,449
Additions	640,643
Balance—October 31, 2022	$	649,092