Balance Sheet Components

12 Months Ended

Apr. 30, 2020

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following (in thousands):


	As of April 30,
	2020		2019
Prepaid hosting costs	$	12,228	$	12,006
Deposits	1,857		1,268
Prepaid software subscription costs	3,104		4,326
Deferred stock-based compensation expense	—		784
Prepaid taxes	3,612
Prepaid value added taxes	5,167		4,239
Other	6,655		8,249
Total prepaid expenses and other current assets	$	32,623	$	30,872

Property and Equipment, Net

The cost and accumulated depreciation of property and equipment were as follows (in thousands):


		As of April 30,
	Useful Life (in years)	2020		2019
Leasehold improvements	Lesser of estimated useful life or remaining lease term	$	8,405	$	6,176
Computer hardware and software	3	5,687		5,393
Furniture and fixtures	3-5	5,072		3,094
Assets under construction		1,661		1,243
Total property and equipment		20,825		15,906
Less: accumulated depreciation		(13,065)		(10,458)
Property and equipment, net		$	7,760	$	5,448

Depreciation expense related to property and equipment was $2.8 million, $2.7 million and $3.0 million for the years ended April 30, 2020, 2019 and 2018, respectively.

Intangible Assets, Net

Intangible assets consisted of the following as of April 30, 2020 (in thousands):


	Gross Fair Value		Accumulated Amortization		Net Book Value		Weighted Average Remaining Useful Life (in years)
Developed technology	$	44,830	$	12,412	$	32,418	4.1
Customer relationships	19,598		3,210		16,388		3.4
Trade names	2,872		1,223		1,649		3.4
Total	$	67,300	$	16,845	$	50,455	3.9

Intangible assets consisted of the following as of April 30, 2019 (in thousands):


	Gross Fair Value		Accumulated Amortization		Net Book Value		Weighted Average Remaining Useful Life (in years)
Developed technology	$	12,130	$	5,646	$	6,484	2.5
Customer relationships	398		268		130		2.2
Trade names	972		863		109		2.2
Total	$	13,500	$	6,777	$	6,723	2.5

Amortization expense for the intangible assets for the years ended April 30, 2020, 2019 and 2018 was as follows (in thousands):


	Year Ended April 30,
	2020		2019		2018
Cost of revenue—cost of license—self-managed	$	948	$	387	$	387
Cost of revenue—cost of subscription—self-managed and SaaS	5,820		2,421		1,521
Sales and marketing	3,300		148		119
Total amortization of acquired intangible assets	$	10,068	$	2,956	$	2,027

The expected future amortization expense related to the intangible assets as of April 30, 2020 was as follows (in thousands, by fiscal year):


2021	$	14,167
2022	12,948
2023	11,890
2024	8,716
2025	2,734
Thereafter	—
Total	$	50,455

Goodwill

The following table represents the changes to goodwill (in thousands):


	Carrying Amount
Balance as of April 30, 2018	$	19,182
Addition from acquisition	1,038
Foreign currency translation adjustment	(374)
Balance as of April 30, 2019	$	19,846
Addition from acquisition	178,764
Foreign currency translation adjustment	(733)
Balance as of April 30, 2020	$	197,877

There was no impairment of goodwill during the years ended April 30, 2020, 2019 and 2018.

Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities consisted of the following (in thousands):


	As of April 30,
	2020		2019
Accrued expenses	$	10,864	$	8,124
Income taxes payable	—		149
Value added taxes payable	7,230		4,236
Share repurchase liability	—		1,612
Other	4,116		4,619
Total accrued expenses and other liabilities	$	22,210	$	18,740

Accrued Compensation and Benefits

Accrued compensation and benefits consisted of the following (in thousands):


	As of April 30,
	2020		2019
Accrued vacation	$	17,971	$	9,655
Accrued commissions	16,259		6,510
Accrued payroll and withholding taxes	7,588		1,868
Post-combination compensation liability	—		655
Other	6,591		3,459
Total accrued compensation and benefits	$	48,409	$	22,147

Contract Balances

The timing of revenue recognition may differ from the timing of invoicing to customers. For annual contracts, the Company typically invoices customers at the time of entering into the contract. For multi-year agreements, the Company generally invoices customers on an annual basis prior to each anniversary of the contract start date. The Company records unbilled accounts receivable related to revenue recognized in excess of amounts invoiced as the Company has an unconditional right to invoice and receive payment in the future related to those fulfilled obligations. Contract liabilities consist of deferred revenue which is recognized over the contractual period.

The following table provides information about unbilled accounts receivable, deferred contract acquisition costs, and deferred revenue from contracts with customers (in thousands):


	As of April 30,
	2020		2019
Unbilled accounts receivable, included in accounts receivable, net	$	2,622	$	1,710
Deferred contract acquisition costs	$	43,549	$	26,150
Deferred revenue	$	259,702	$	170,666

Significant changes in the unbilled accounts receivable and the deferred revenue balances were as follows (in thousands):


	Unbilled Accounts Receivable
	Year Ended April 30,
	2020		2019		2018
Beginning balance	$	1,710	$	1,139	$	1,114
Amounts transferred to accounts receivable from unbilled accounts receivable presented at the beginning of the period	(1,710)		(1,139)		(1,114)
Revenue recognized during the period in excess of invoices issued	2,622		1,710		1,139
Ending balance	$	2,622	$	1,710	$	1,139



	Deferred Revenue
	Year Ended April 30,
	2020		2019		2018
Beginning balance	$	170,666	$	102,561	$	54,152
Additions through acquisition	6,192		—		859
Increases due to invoices issued, excluding amounts recognized as revenue during the period	242,136		163,963		96,944
Revenue recognized that was included in deferred revenue balance at beginning of period	(159,292)		(95,858)		(49,394)
Ending balance	$	259,702	$	170,666	$	102,561

Deferred Contract Acquisition Costs

Deferred contract acquisition costs represent costs that are incremental to the acquisition of customer contracts, which consist mainly of sales commissions and associated payroll taxes. The Company determines whether costs should be deferred based on sales compensation plans, if the commissions are in fact incremental and would not have occurred absent the customer contract.

During the fiscal years ended April 30, 2019 and 2018, sales commissions for renewal of a contract were considered commensurate with the commissions paid for contracts with new customers and incremental sales to existing customers given there was no substantive difference in commission rates in proportion to their respective contract values. Effective May 1, 2019, the Company updated its sales commissions plan by incorporating different commission rates for contracts with new customers and incremental sales to existing customers, and for subsequent subscription renewals. Subsequent to this change, sales commissions for renewal of a subscription contract are not considered commensurate with the commissions paid for contracts with new customers and incremental sales to existing customers given the substantive difference in commission rates in proportion to their respective contract values. Accordingly, commissions paid for contracts with new customers and incremental sales to existing customers are now amortized over an estimated period of benefit of five years while commissions paid related to renewal contracts are now amortized based on the pattern of the associated revenue recognition over the related contractual renewal period for the pool of renewal contracts. The Company determines the period of benefit for commissions paid for contracts with new customers and incremental sales to existing customers by taking into consideration its initial estimated customer life and the technological life of its software and related significant features. Commissions paid on professional services are typically amortized in accordance with the associated revenue as the commissions paid on new and renewal professional services are commensurate with each other. Amortization of deferred contract acquisition costs is recognized in sales and marketing expense in the consolidated statement of operations.

The Company periodically reviews the carrying amount of deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these deferred costs. The Company did not recognize any impairment of deferred contract acquisition costs during the years ended April 30, 2020, 2019 and 2018.

The following table summarizes the activity of the deferred contract acquisition costs (in thousands):


	Year Ended April 30,
	2020		2019		2018
Beginning balance	$	26,150	$	18,079	$	10,135
Capitalization of contract acquisition costs	45,713		29,445		20,675
Amortization of deferred contract acquisition costs	(28,314)		(21,374)		(12,731)
Ending balance	$	43,549	$	26,150	$	18,079
Deferred contract acquisition costs, current	19,537		17,215		12,125
Deferred contract acquisition costs, non- current	24,012		8,935		5,954
Total deferred contract acquisition costs	$	43,549	$	26,150	$	18,079