Balance Sheet Components

6 Months Ended

Oct. 31, 2020

Prepaid Expenses and Other Current Assets

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


	As of October 31, 2020		As of April 30, 2020
Prepaid hosting costs	$	9,842	$	12,228
Deposits	2,167		1,857
Prepaid software subscription costs	4,312		3,104
Prepaid taxes	3,786		3,612
Prepaid value added taxes	4,181		5,167
Other	7,517		6,655
Total prepaid expenses and other current assets	$	31,805	$	32,623

Property and Equipment, Net

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


	Useful Life (in years)			As of October 31, 2020		As of April 30, 2020
Leasehold improvements	Lesser of estimated useful life or remaining lease term			$	8,070	$	8,405
Computer hardware and software		3		5,832		5,687
Furniture and fixtures	3	-	5	5,151		5,072
Assets under construction				1,852		1,661
Total property and equipment				20,905		20,825
Less: accumulated depreciation				(12,901)		(13,065)
Property and equipment, net				$	8,004	$	7,760

Depreciation expense related to property and equipment was $0.8 million and $0.7 million for the three months ended October 31, 2020 and 2019, respectively. Depreciation expense related to property and equipment was $1.5 million and $1.3 million for the six months ended October 31, 2020 and 2019, respectively.

Intangible Assets, Net

Intangible assets consisted of the following as of October 31, 2020 and April 30, 2020 (in thousands):


October 31, 2020	Gross Fair Value		Accumulated Amortization		Net Book Value		Weighted Average Remaining Useful Life (in years)
Developed technology	$	44,830	$	16,780	$	28,050	3.7
Customer relationships	19,598		5,653		13,945		2.9
Trade names	2,872		1,505		1,367		2.9
Total	$	67,300	$	23,938	$	43,362	3.4


April 30, 2020	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

Amortization expense for the intangible assets for the three and six months ended October 31, 2020 and 2019 was as follows (in thousands):


	Three Months Ended October 31,				Six Months Ended October 31,
	2020		2019		2020		2019
Cost of revenue—cost of license—self-managed	$	347	$	158	$	693	$	255
Cost of revenue—cost of subscription—self-managed and SaaS	1,762		861		3,525		1,397
Sales and marketing	1,433		379		2,874		408
Total amortization of acquired intangible assets	$	3,542	$	1,398	$	7,092	$	2,060

The expected future amortization expense related to the intangible assets as of October 31, 2020 was as follows (in thousands, by fiscal year):


Remainder of 2021	$	7,076
2022	12,947
2023	11,890
2024	8,715
2025	2,734
Total	$	43,362

Goodwill

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


	Carrying Amount
Balance as of April 30, 2020	$	197,877
Foreign currency translation adjustment	319
Balance as of October 31, 2020	$	198,196

There was no impairment of goodwill during the six months ended October 31, 2020 and 2019.

Accrued Expenses and Other Liabilities

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


	As of October 31, 2020		As of April 30, 2020
Accrued expenses	$	11,796	$	10,864
Value added taxes payable	5,649		7,230
Other	4,379		4,116
Total accrued expenses and other liabilities	$	21,824	$	22,210

Accrued Compensation and Benefits

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


	As of October 31, 2020		As of April 30, 2020
Accrued vacation	$	21,553	$	17,971
Accrued commissions	14,919		16,259
Accrued payroll taxes and withholding taxes	5,658		7,588
Other	4,845		6,591
Total accrued compensation and benefits	$	46,975	$	48,409

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. Invoicing customers prior to performance creates a contract liability, deferred revenue, which is recognized in accordance with the Company’s revenue recognition policy.

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


	As of October 31, 2020		As of April 30, 2020
Unbilled accounts receivable, included in accounts receivable, net	$	3,046	$	2,622
Deferred contract acquisition costs	$	64,483	$	43,549
Deferred revenue	$	309,216	$	259,702

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


	Unbilled Accounts Receivable
	Six Months Ended October 31,
	2020		2019
Beginning balance	$	2,622	$	1,710
Amounts transferred to accounts receivable from unbilled accounts receivable presented at the beginning of the period	(2,622)		(1,710)
Additions through acquisition	—		321
Revenue recognized during the period in excess of invoices issued	3,046		2,309
Ending balance	$	3,046	$	2,630


	Deferred Revenue
	Six Months Ended October 31,
	2020		2019
Beginning balance	$	259,702	$	170,666
Increases due to invoices issued, excluding amounts recognized as revenue during the period	201,784		135,665
Amounts transferred to deferred revenue from accrued expenses and other liabilities upon entering into contracts with customers, net of revenue recognized during the period	5,424		—
Increase from acquisition, net of revenue recognized	—		6,147
Revenue recognized that was included in deferred revenue balance at beginning of period	(157,694)		(111,147)
Ending balance	$	309,216	$	201,331

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.

Sales commissions for renewal of a subscription contract are not considered commensurate with the commissions paid for the acquisition of the initial subscription contract given the substantive difference in commission rates in proportion to their respective contract values. Accordingly, commissions paid upon the initial acquisition of a contract are amortized over an estimated period of benefit of five years while commissions paid related to renewal contracts are 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 the acquisition of the initial subscription contract by taking into consideration its initial estimated customer life and the technological life of its software and related significant features. Deferred contract acquisition costs are expensed commensurate with the pattern of revenue recognition as performance obligations are satisfied. 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 three months ended October 31, 2020.

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


	Six Months Ended October 31,
	2020		2019
Beginning balance	$	43,549	$	26,150
Capitalization of contract acquisition costs	39,107		17,005
Amortization of deferred contract acquisition costs	(18,173)		(13,921)
Ending balance	$	64,483	$	29,234

Allowance for Credit Losses

The following is a summary of the changes in the Company’s allowance for credit losses (in thousands):


Balance at April 30, 2020	$	1,247
Cumulative-effect adjustment from adoption of ASU 2016-13	(367)
Provision	1,233
Write-offs	(608)
Balance at October 31, 2020	$	1,505