View Filing Data

Print Document View Excel Document

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jul. 31, 2019	Aug. 31, 2019
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 31, 2019
Document Transition Report	false
Entity File Number	001-38933
Entity Registrant Name	CROWDSTRIKE HOLDINGS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	45-3788918
Entity Address, Address Line One	150 Mathilda Place
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	Sunnyvale
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94086
City Area Code	888
Local Phone Number	512-8906
Title of 12(b) Security	Class A common stock
Trading Symbol	CRWD
Security Exchange Name	NASDAQ
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Central Index Key	0001535527
Current Fiscal Year End Date	--01-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false
Class A common stock
Entity Common Stock, Shares Outstanding		20,700,000
Class B common stock
Entity Common Stock, Shares Outstanding		205,245,332

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 31, 2019	Jan. 31, 2019
Current assets:
Cash and cash equivalents	$ 732,808	$ 88,408
Marketable securities	94,003	103,247
Accounts receivable, net of allowance for doubtful accounts of $1.0 million as of July 31, 2019 and January 31, 2019	115,256	92,476
Deferred contract acquisition costs, current	34,017	28,847
Prepaid expenses and other current assets	29,348	18,410
Total current assets	1,005,432	331,388
Property and equipment, net	107,989	73,735
Deferred contract acquisition costs, noncurrent	41,766	9,918
Goodwill	7,780	7,947
Intangible assets, net	738	1,048
Other assets	7,881	9,183
Total assets	1,171,586	433,219
Current liabilities:
Accounts payable	1,126	6,855
Accrued expenses	32,568	32,541
Accrued payroll and benefits	20,057	19,284
Deferred revenue	279,951	218,700
Other current liabilities	8,079	4,040
Total current liabilities	341,781	281,420
Deferred revenue, noncurrent	89,811	71,367
Other liabilities, noncurrent	11,897	10,313
Total liabilities	443,489	363,100
Commitments and contingencies (Note 11)
Redeemable Convertible Preferred Stock
Redeemable convertible preferred stock, $0.0005 par value; no shares and 137,419 shares authorized as of July 31, 2019 and January 31, 2019, respectively; no shares and 131,268 shares issued and outstanding as of July 31, 2019 and January 31, 2019, respectively; liquidation preference $0 and $545,000 as of July 31, 2019 and January 31, 2019, respectively		557,912
Stockholders' Equity (Deficit)
Preferred stock, $0.0005 par value; 100,000 shares and no shares authorized as of July 31, 2019 and January 31, 2019, respectively; no shares issued and outstanding as of both July 31, 2019 and January 31, 2019, respectively
Common stock, value		24
Additional paid-in capital	1,302,098	31,211
Accumulated deficit	(573,574)	(519,126)
Accumulated other comprehensive income (loss)	(530)	98
Total stockholders' equity (deficit)	728,097	(487,793)
Total liabilities, redeemable convertible preferred stock, and stockholders' equity (deficit)	1,171,586	$ 433,219
Class A and Class B common stock
Stockholders' Equity (Deficit)
Common stock, value	$ 103

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jul. 31, 2019	Jan. 31, 2019
Accounts receivable, allowance for doubtful accounts	$ 1,000	$ 1,000
Redeemable preferred stock, par value (in dollars per share)	$ 0.0005	$ 0.0005
Redeemable preferred stock, shares authorized (in shares)	0	137,419
Redeemable preferred stock, shares issued (in shares)	0	131,268
Redeemable preferred stock, shares outstanding (in shares)	0	131,268
Redeemable preferred stock, liquidation preference	$ 0	$ 545,000
Preferred stock, par value (in dollars per share)	$ 0.0005	$ 0.0005
Preferred stock, shares authorized (in shares)	100,000	0
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0005	$ 0.0005
Common stock, shares authorized (in shares)	0	220,000
Common stock, shares issued (in shares)	0	47,421
Common stock, shares outstanding (in shares)	0	47,421
Class A common stock
Common stock, par value (in dollars per share)	$ 0.0005	$ 0.0005
Common stock, shares authorized (in shares)	2,000,000	0
Common stock, shares issued (in shares)	20,700	0
Common stock, shares outstanding (in shares)	20,700	0
Class B common stock
Common stock, par value (in dollars per share)	$ 0.0005	$ 0.0005
Common stock, shares authorized (in shares)	300,000	0
Common stock, shares issued (in shares)	205,193	0
Common stock, shares outstanding (in shares)	205,193	0

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Revenue
Total revenue	$ 108,108	$ 55,701	$ 204,185	$ 102,990
Cost of revenue
Total cost of revenue	31,582	18,575	60,856	37,969
Gross profit	76,526	37,126	143,329	65,021
Operating expenses
Sales and marketing	65,274	40,113	122,117	76,730
Research and development	31,630	18,963	55,505	36,578
General and administrative	30,261	8,477	42,122	15,254
Total operating expenses	127,165	67,553	219,744	128,562
Loss from operations	(50,639)	(30,427)	(76,415)	(63,541)
Interest expense	(164)	(236)	(165)	(428)
Other expense	(451)	(1,852)	(56)	(2,042)
Loss before provision for income taxes	(51,254)	(32,515)	(76,636)	(66,011)
Provision for income taxes	(635)	(362)	(1,230)	(483)
Net loss	$ (51,889)	$ (32,877)	$ (77,866)	$ (66,494)
Net loss per share attributable to Class A and Class B common stockholders, basic and diluted	$ (0.40)	$ (0.75)	$ (0.87)	$ (1.52)
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted	130,091	44,105	89,335	43,864
Subscription
Revenue
Total revenue	$ 97,575	$ 49,161	$ 183,566	$ 88,919
Cost of revenue
Total cost of revenue	24,946	14,604	48,637	29,775
Professional services
Revenue
Total revenue	10,533	6,540	20,619	14,071
Cost of revenue
Total cost of revenue	$ 6,636	$ 3,971	$ 12,219	$ 8,194

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Condensed Consolidated Statements of Comprehensive Loss
Net loss	$ (51,889)	$ (32,877)	$ (77,866)	$ (66,494)
Other comprehensive loss:
Foreign currency translation adjustments	(343)	(358)	(623)	(690)
Unrealized loss on available-for-sale securities, net of tax	(1)	(2)	(5)	(2)
Other comprehensive loss	(344)	(360)	(628)	(692)
Total comprehensive loss	$ (52,233)	$ (33,237)	$ (78,494)	$ (67,186)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Deficit - USD ($) shares in Thousands, $ in Thousands	Redeemable Convertible Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Total
Beginning Balance at Jan. 31, 2018	$ 351,016
Beginning Balance (in shares) at Jan. 31, 2018	118,693
Redeemable Convertible Preferred Stock
Issuance of Series E redeemable convertible preferred stock, net of issuance costs	$ 199,896
Issuance of Series E redeemable convertible preferred stock, net of issuance costs (Shares)	12,150
Ending Balance at Jul. 31, 2018	$ 550,912
Ending Balance (in shares) at Jul. 31, 2018	130,843
Beginning Balance at Jan. 31, 2018		$ 22	$ 8,482	$ (378,948)	$ 970	$ (369,474)
Beginning Balance (in shares) at Jan. 31, 2018		44,231
Stockholders' Deficit
Issuance of common stock upon exercise of options			1,514			1,514
Issuance of common stock upon exercise of options (in shares)		1,198
Issuance of common stock related to early exercise options (in shares)		38
Issuance of restricted stock awards (in shares)		142
Vesting of early exercised options			104			104
Stock-based compensation expense			3,943			3,943
Repurchase of stock options			(2,330)			(2,330)
Net loss				(66,494)		(66,494)
Other comprehensive loss					(692)	(692)
Ending Balance at Jul. 31, 2018		$ 22	11,814	(445,543)	278	(433,429)
Ending Balance (in shares) at Jul. 31, 2018		45,609
Beginning Balance at Apr. 30, 2018	$ 351,016
Beginning Balance (in shares) at Apr. 30, 2018	118,693
Redeemable Convertible Preferred Stock
Issuance of Series E redeemable convertible preferred stock, net of issuance costs	$ 199,896
Issuance of Series E redeemable convertible preferred stock, net of issuance costs (Shares)	12,150
Ending Balance at Jul. 31, 2018	$ 550,912
Ending Balance (in shares) at Jul. 31, 2018	130,843
Beginning Balance at Apr. 30, 2018		$ 22	11,067	(412,666)	638	(400,939)
Beginning Balance (in shares) at Apr. 30, 2018		44,774
Stockholders' Deficit
Issuance of common stock upon exercise of options			763			763
Issuance of common stock upon exercise of options (in shares)		699
Issuance of restricted stock awards (in shares)		136
Vesting of early exercised options			90			90
Stock-based compensation expense			2,224			2,224
Repurchase of stock options			(2,330)			(2,330)
Net loss				(32,877)		(32,877)
Other comprehensive loss					(360)	(360)
Ending Balance at Jul. 31, 2018		$ 22	11,814	(445,543)	278	(433,429)
Ending Balance (in shares) at Jul. 31, 2018		45,609
Stockholders' Deficit
Cumulative effect of accounting change			101	(101)
Beginning Balance at Jan. 31, 2019	$ 557,912					$ 557,912
Beginning Balance (in shares) at Jan. 31, 2019	131,268					131,268
Ending Balance at Apr. 30, 2019	$ 557,912
Ending Balance (in shares) at Apr. 30, 2019	131,268
Beginning Balance at Jan. 31, 2019		$ 24	31,211	(519,126)	98	$ (487,793)
Beginning Balance (in shares) at Jan. 31, 2019		47,421
Ending Balance at Apr. 30, 2019		$ 24	36,670	(521,685)	(186)	(485,177)
Ending Balance (in shares) at Apr. 30, 2019		48,127
Beginning Balance at Jan. 31, 2019	$ 557,912					$ 557,912
Beginning Balance (in shares) at Jan. 31, 2019	131,268					131,268
Ending Balance (in shares) at Jul. 31, 2019						0
Beginning Balance at Jan. 31, 2019		$ 24	31,211	(519,126)	98	$ (487,793)
Beginning Balance (in shares) at Jan. 31, 2019		47,421
Stockholders' Deficit
Issuance of common stock upon initial public offering, net of underwriting discounts and issuance costs		$ 11	659,207			659,218
Issuance of common stock upon initial public offering, net of underwriting discounts and issuance costs ( in shares)		20,700
Conversion of redeemable convertible preferred stock to common stock upon initial public offering	$ (557,912)	$ 66	557,846			557,912
Conversion of redeemable convertible preferred stock to common stock upon initial public offering (in shares)	(131,268)	131,268
Reclassification of liability for redeemable convertible preferred stock warrants to additional paid-in capital upon initial public offering			10,559			10,559
Net exercise of common stock warrants ( in shares)		322
Issuance of common stock upon exercise of options		$ 2	8,565			8,567
Issuance of common stock upon exercise of options (in shares)		4,445
Issuance of common stock related to early exercise options (in shares)		1,037
Vesting of early exercised options			854			854
Stock-based compensation expense			33,611			33,611
Capitalized stock-based compensation			245			245
Net loss				(77,866)		(77,866)
Other comprehensive loss					(628)	(628)
Ending Balance at Jul. 31, 2019		$ 103	1,302,098	(573,574)	(530)	$ 728,097
Ending Balance (in shares) at Jul. 31, 2019		205,193
Beginning Balance at Apr. 30, 2019	$ 557,912
Beginning Balance (in shares) at Apr. 30, 2019	131,268
Ending Balance (in shares) at Jul. 31, 2019						0
Beginning Balance at Apr. 30, 2019		$ 24	36,670	(521,685)	(186)	$ (485,177)
Beginning Balance (in shares) at Apr. 30, 2019		48,127
Stockholders' Deficit
Issuance of common stock upon initial public offering, net of underwriting discounts and issuance costs		$ 11	659,207			659,218
Issuance of common stock upon initial public offering, net of underwriting discounts and issuance costs ( in shares)		20,700
Conversion of redeemable convertible preferred stock to common stock upon initial public offering	$ (557,912)	$ 66	557,846			557,912
Conversion of redeemable convertible preferred stock to common stock upon initial public offering (in shares)	(131,268)	131,268
Reclassification of liability for redeemable convertible preferred stock warrants to additional paid-in capital upon initial public offering			10,559			10,559
Net exercise of common stock warrants ( in shares)		322
Issuance of common stock upon exercise of options		$ 2	7,055			7,057
Issuance of common stock upon exercise of options (in shares)		3,739
Issuance of common stock related to early exercise options (in shares)		1,037
Vesting of early exercised options			710			710
Stock-based compensation expense			29,859			29,859
Capitalized stock-based compensation			192			192
Net loss				(51,889)		(51,889)
Other comprehensive loss					(344)	(344)
Ending Balance at Jul. 31, 2019		$ 103	$ 1,302,098	(573,574)	$ (530)	728,097
Ending Balance (in shares) at Jul. 31, 2019		205,193
Stockholders' Deficit
Cumulative effect of accounting change				$ 23,418		$ 23,418

Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Deficit (Parenthetical) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jul. 31, 2018	Jul. 31, 2018
Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Deficit
Payments of deferred offering costs	$ 104	$ 104

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jul. 31, 2019	Jul. 31, 2018
Operating activities
Net loss	$ (77,866)	$ (66,494)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	10,193	6,424
Amortization of intangible assets	285	373
Amortization of deferred contract acquisition costs	15,076	11,991
Change in fair value of redeemable convertible preferred stock warrant liability	6,022	2,055
Allowance for doubtful accounts	22	203
Stock-based compensation expense	33,611	3,943
Accretion of marketable securities purchased at a discount	(960)	(169)
Other	163	187
Changes in operating assets and liabilities
Accounts receivable	(22,802)	2,116
Deferred contract acquisition costs	(27,788)	(14,298)
Prepaid expenses and other assets	(12,505)	(91)
Accounts payable	(5,897)	(7,703)
Accrued expenses and other current liabilities	(2,095)	(9,058)
Accrued payroll and benefits	773	(1,647)
Deferred revenue	79,362	37,246
Other liabilities, noncurrent	(393)	(215)
Net cash used in operating activities	(4,799)	(35,137)
Investing activities
Purchases of property and equipment	(37,159)	(14,068)
Capitalized internal-use software	(3,310)	(3,201)
Purchases of marketable securities	(117,572)	(80,204)
Proceeds from sales of marketable securities	4,473
Maturities of marketable securities	123,314	2,600
Net cash used in investing activities	(30,254)	(94,873)
Financing activities
Proceeds from the issuance of common stock upon initial public offering, net of underwriting discounts	665,092
Proceeds from the issuance of redeemable convertible preferred stock, net of issuance costs		199,896
Repayment of loan payable		(6,158)
Proceeds from revolving line of credit		10,000
Repayment of revolving line of credit		(20,000)
Repayment of notes receivable from related parties		198
Payments of indemnity holdback		(500)
Repurchase of stock options		(2,330)
Payments of deferred offering costs	(4,080)
Proceeds from issuance of common stock upon exercise of stock options	8,526	1,514
Proceeds from the issuance of common stock upon exercise of early exercisable stock options	10,264
Net cash provided by financing activities	679,802	182,620
Effect of foreign exchange rates on cash and cash equivalents	(349)	(255)
Net increase in cash and cash equivalents	644,400	52,355
Cash and cash equivalents, beginning of period	88,408	63,179
Cash and cash equivalents, end of period	732,808	115,534
Supplemental disclosure of cash flow information:
Interest paid	2	448
Income taxes paid	413	432
Supplemental disclosure of non-cash investing and financing activities:
Indemnity holdback consideration associated with business combinations		1,799
Contingent consideration associated with business combinations		713
Conversion of redeemable convertible preferred stock to common stock	659,207
Conversion of redeemable convertible preferred stock warrant liabilities reclassed to additional paid-in capital	10,559
Net change in deferred offering costs, accrued but not paid	(1,078)
Net change in property and equipment included in accounts payable and accrued expenses	$ 3,820	$ 152

Description of Business and Basis of Presentation

6 Months Ended

Jul. 31, 2019

Description of Business and Basis of Presentation

Description of Business and Basis of Presentation

1. Description of Business and Basis of Presentation

CrowdStrike Holdings, Inc. (the “Company”) was formed on November 7, 2011. The Company provides a leading cloud-delivered solution for next-generation endpoint protection that offers 10 cloud modules on its Falcon platform via a SaaS subscription-based model that spans multiple large security markets, including endpoint security, security and IT operations (including vulnerability management), and threat intelligence. The Company is headquartered in Sunnyvale, California. The Company conducts its business in the United States, as well as locations internationally, including in Australia, Germany, India, Romania, and the United Kingdom.

On June 14, 2019, the Company closed its initial public offering ("IPO"), in which it sold 20,700,000 shares of Class A common stock. The shares were sold at a public offering price of $34.00 per share for net proceeds of $659.2 million, after deducting underwriters’ discounts and commissions and offering expenses of $44.8 million. Immediately prior to the closing of the IPO, all outstanding shares of redeemable convertible preferred stock automatically converted into 131,267,586 shares of Class B common stock on a one-to-one basis. Additionally, in connection with the IPO all of the Company’s outstanding common stock was reclassified into shares of Class B common stock on a one-for-one basis. Redeemable convertible preferred stock warrants also converted into 336,386 warrants to purchase Class B common stock on a one-to-one basis.

Summary of Significant Accounting Policies

6 Months Ended

Jul. 31, 2019

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America, ("U.S. GAAP"), and applicable rules and regulations of the Securities and Exchange Commission, ("SEC"), regarding interim financial reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP have been condensed or omitted, and accordingly the balance sheet as of January 31, 2019, and related disclosures, have been derived from the audited consolidated financial statements at that date but do not include all of the information required by U.S. GAAP for complete consolidated financial statements. These unaudited condensed consolidated financial statements have been prepared on the same basis as the Company’s annual consolidated financial statements and, in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for the fair statement of the Company’s condensed consolidated financial information. The results of operations for the three and six months ended July 31, 2019 are not necessarily indicative of the results to be expected for the year ending January 31, 2020 or for any other interim period or for any other future year.

The accompanying interim unaudited condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto for the year ended January 31, 2019 included in the Company’s prospectus dated June 11, 2019 filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933, as amended.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Certain information and footnote disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the applicable required disclosures and regulations of the SEC. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes thereto as of and for the year ended January 31, 2019, included in the Company’s prospectus dated June 11, 2019.

JOBS Act Accounting Election

The Company is an "emerging growth company" ("EGC") as defined in the Jumpstart Our Business Startups Act of 2012 ("JOBS Act"). An EGC may take advantage of specified reduced reporting requirements that are otherwise applicable generally to public companies, including, but not limited to, delayed adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002 ("Sarbanes-Oxley Act"), reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

The Company may take advantage of these exemptions until it is no longer an EGC. The Company would cease to be an EGC upon the earliest to occur of: (i) the first fiscal year following the fifth anniversary of its initial public offering; (ii) the first fiscal year after annual gross revenue is $1.0 billion or more; (iii) the date on which the Company has, during the previous three-year period, issued more than $1.07 billion in non-convertible debt securities; or (iv) the date on which the Company qualifies as a "large accelerated filer," as defined in Rule 12b-2 under the Exchange Act, which would occur at the end of any fiscal year in which the market value of the Company’s common stock held by non-affiliates exceeded $700.0 million as of the end of the second quarter of that fiscal year, and as of the end of such fiscal year the Company has been a reporting company for at least 12 months.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the Company’s condensed consolidated financial statements and accompanying notes. These estimates are based on information available as of the date of the condensed consolidated financial statements. On a regular basis, management evaluates these estimates and assumptions. Actual results may differ from these estimates and such difference could be material to the Company’s condensed consolidated financial statements.

Significant estimates and assumptions used by management affect revenue recognition, the allowance for doubtful accounts, the carrying value of long-lived assets, the useful lives of long-lived assets, the fair value of financial instruments, the period of benefit for deferred contract acquisition costs, the recognition and disclosure of contingent liabilities, the provision for income taxes and related deferred taxes, stock-based compensation, and the fair value of the Company’s common stock and redeemable convertible preferred stock warrants.

Concentration of Credit Risk and Geographic Information

The Company generates revenue from the sale of subscriptions to access its cloud platform and professional services. The Company’s sales team, along with its channel partner network of system integrators and value-added resellers (collectively, “channel partners”), sells the Company’s services worldwide to organizations of all sizes. Due to the nature of the Company’s services and the terms and conditions of the Company’s contracts with its channel partners, the Company’s business could be affected unfavorably if it is not able to continue its relationships with them.

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash, cash equivalents and accounts receivable. The Company’s cash is placed with high-credit-quality financial institutions and issuers, and at times exceed federally insured limits. The Company limits its concentration of risk in cash equivalents and marketable securities by diversifying its investments among a variety of industries and issuers. The Company has not experienced any credit loss relating to its cash equivalents and marketable securities. The Company performs periodic credit evaluations of its customers and generally does not require collateral.

No channel partner or direct customer accounted for 10% or more of the Company’s consolidated accounts receivable as of July 31, 2019. There are no channel partners who accounted for 10% or more of the Company’s consolidated accounts receivable as of January 31, 2019. Outstanding accounts receivable from two of the Company’s direct customers accounted for 10% and 19% of its consolidated accounts receivable as of January 31, 2019.

Revenue from sales to one of the Company’s channel partners accounted for 11% and 15% of its consolidated revenue for the three months ended July 31, 2019 and July 31, 2018, respectively, and 11% and 16% for the six months ended July 31, 2019 and July 31, 2018, respectively.

There were no direct customers who represented 10% or more of the Company’s total revenue during the three and six months ended July 31, 2019 and July 31, 2018.

Cash Equivalents and Marketable Securities

The Company considers all highly liquid investments with original maturities of three months or less at date of purchase to be cash equivalents. Cash equivalents as of July 31, 2019 and January 31, 2019 consisted of corporate debt securities and money market funds stated at fair value. The Company classifies investments in marketable securities as available-for-sale securities at the time of purchase, since it is the Company’s intent that these investments are available to support current operations. Marketable securities are classified as current or long-term based on the nature of the investments and their availability for use in current operations. Available-for-sale securities are carried at fair value with unrealized gains and losses, if any, included in accumulated other comprehensive income (loss). Unrealized losses are recorded in other income (expense), net, for declines in fair value below the cost of an individual investment that is deemed to be other-than-temporary. The Company did not identify any marketable securities as other-than-temporarily impaired as of July 31, 2019 and January 31, 2019. The Company determines realized gains or losses on the sale of marketable securities on a specific identification method and records such gains or losses in Other expense, net. Marketable securities as of July 31, 2019 and January 31, 2019 consisted of corporate debt securities and U.S. treasury securities.

Strategic Investments

In July 2019, the Company agreed to commit up to $10.0 million to a newly formed entity, CrowdStrike Falcon Fund LLC (“Falcon Fund”) in exchange for 50% of the sharing percentage of any distribution by Falcon Fund. Entities associated with Accel, a holder of more than 5% of the Company’s capital stock, also agreed to commit up to $10.0 million to Falcon Fund, and collectively own the remaining 50% of the sharing percentage of Falcon Fund. Falcon Fund is in the business of purchasing, selling, investing and trading in minority equity and convertible debt securities of privately-held companies that develop applications that have potential for substantial contribution to CrowdStrike and its platform. The Company is the manager of the Falcon Fund and controls the investment decisions and day-to-day operations. Falcon Fund has a duration of ten years and may be extended for three additional years. At dissolution, Falcon Fund will be liquidated and the remaining assets will be distributed to the investors based on their respective sharing percentage. As of July 31, 2019, the Company had not made a contribution to Falcon Fund. The Company has elected the measurement alternative, defined as cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The Company’s investment in Falcon Fund will be valued using significant unobservable inputs or data in inactive markets which require judgment due to the absence of market prices and inherent lack of liquidity. As a result, there could be volatility in the Company’s consolidated statements of operations in future periods due to the valuation and timing of identical or similar investments of the same issuer.

Fair Value of Financial Instruments

The Company’s financial instruments consist of cash equivalents, marketable securities, accounts receivable, accounts payable, accrued expenses, and redeemable convertible preferred stock warrant liability. The carrying values of cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value due to their short-term nature. Refer to Note 3, Fair Value Measurements and Marketable Securities regarding the fair value of the Company’s marketable securities.

The Company reports the redeemable convertible preferred stock warrant liability at fair value (see Note 3, Fair Value Measurements). The warrants issued by the Company for redeemable convertible preferred stock in January 2015, December 2016, and March 2017 (see Note 7, Redeemable Convertible Preferred Stock) have been recorded as a liability based on “Level 3” inputs, which consist of unobservable inputs and reflect management’s estimates of

assumptions that market participants would use in pricing the liability. The fair value of the warrants was determined using the Black-Scholes option-pricing model, which is affected by changes in inputs to that model including the Company’s stock price, expected stock price volatility, risk-free rate, and contractual term.

Accounts Receivable and Allowance for Doubtful Accounts

Accounts receivable are recorded at the invoiced amount and are non-interest bearing. Accounts receivable are stated at their net realizable value, net of an allowance for doubtful accounts. The Company has a well-established collections history from its customers. Credit is extended to customers based on an evaluation of their financial condition and other factors. The Company generally does not require collateral from its customers; however, the Company may require payment prior to commencing service in certain instances to limit credit risk. The Company records an allowance for doubtful accounts based on management’s assessment of the collectability of accounts. Management regularly reviews the adequacy of the allowance for doubtful accounts by considering the age of each outstanding invoice, each customer’s expected ability to pay, and the collection history with each customer, when applicable, to determine whether the allowance is appropriate. Amounts deemed uncollectible are written off against the allowance for doubtful accounts. As of July 31, 2019 and January 31, 2019, the allowance for doubtful accounts was $1.0 million.

Deferred Offering Costs

Deferred offering costs of $2.9 million have been recorded as other assets on the condensed consolidated balance sheet as of January 31, 2019, and consist of expenses incurred in connection with the Company’s IPO, including legal, accounting, printing, and other IPO-related costs. Subsequent to January 31, 2019, the Company capitalized an additional $3.0 million of offering costs. Upon the close of the IPO on June 14, 2019, all of these deferred offering costs were reclassified to stockholders’ equity and recorded against the proceeds from the offering. As of July 31, 2019, the Company had paid $4.1 million of these deferred offering costs.

Property and Equipment, Net

Property and equipment, net, is stated at historical cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets as follows:


Data center and other computer equipment		3 - 5 years
Furniture and equipment		5 years
Purchased software		3 - 5 years
Capitalized internal-use software		3 years
Leasehold improvements		Estimated useful life or term of the lease, whichever is shorter

Expenditures for routine maintenance and repairs are charged to operating expense as incurred. Major renewals and improvements are capitalized and depreciated over their estimated useful lives. Upon retirement or other disposition of property and equipment, the cost and accumulated depreciation are removed from the accounts, and any gain or loss is recorded in operating expenses in the condensed consolidated statements of operations.

Capitalized Internal-Use Software

The Company capitalizes certain development costs incurred in connection with its internal-use software. These capitalized costs are primarily related to the Company’s cloud-delivered solution for next-generation endpoint protection. Costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct, are capitalized until the software is substantially complete and ready for its intended use. Capitalization ceases upon completion of all substantial testing. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Capitalized costs are recorded as property and equipment, net. Maintenance and training costs are expensed as incurred. Internal-use software is amortized to cost of revenue on a straight-line basis over its estimated useful life of three years. Management evaluates the useful lives of these assets on an annual basis and tests for

impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. There were no impairments of internal-use software during the three months ended July 31, 2019 and July 31, 2018. The Company capitalized $1.5 million in internal-use software during the three months ended July 31, 2019 and July 31, 2018, and $3.5 million and $3.2 million during the six months ended July 31, 2019 and July 31, 2018, respectively. Amortization expense associated with internal-use software totaled $1.6 million and $1.2 million during the three months ended July 31, 2019 and July 31, 2018, respectively, and $3.0 million and $2.3 million during the six months ended July 31, 2019 and July 31, 2018, respectively. The net book value of capitalized internal-use software was $12.0 million and $11.5 million as of July 31, 2019 and January 31, 2019, respectively.

Intangible Assets, Net

Intangible assets, net, consisting of developed technology, customer relationships, and non-compete agreements, are stated at cost less accumulated amortization. All intangible assets have been determined to have definite lives and are amortized on a straight-line basis over their estimated economic lives of three to five years. Amortization expense related to developed technology is included in cost of revenue, amortization expense related to customer relationships is included in sales and marketing expenses, and amortization expense related to non-compete agreements is included in research and development expenses.

Deferred Contract Acquisition Costs

The Company capitalizes contract acquisition costs that are incremental to the acquisition of customer contracts. Contract acquisition costs are accrued and capitalized upon execution of the sales contract by the customer. Sales commissions for renewal of a contract are not considered commensurate with the commissions paid for the acquisition of the initial contract or follow-on upsell given the substantive difference in commission rates in proportion to their respective contract values. Commissions, including referral fees paid to channel partners, paid upon the initial acquisition of a contract or subsequent upsell are amortized over an estimated period of benefit of four years while commissions paid for renewal contracts are amortized over the contractual term of the renewals. Sales commissions associated with professional service contract are amortized ratably over an estimated period of benefit of six months. Amortization of deferred contract acquisition costs is recognized on a straight-line basis commensurate with the pattern of revenue recognition and included in sales and marketing expense in the condensed consolidated statements of operations. The Company capitalized contract acquisition costs of $19.3 million, which is under ASC606, and $9.3 million, which is under ASC 605, during the three months ended July 31, 2019 and July 31, 2018, respectively, and $27.8 million, which is under ASC 606, and $14.3 million, which is under ASC 605, during the six months ended July 31, 2019 and July 31, 2018, respectively. Contract acquisition cost amortization expense was $7.7 million, which is under ASC 606, and $6.4 million, which was under ASC 605, during the three months ended July 31, 2019 and July 31, 2018, respectively, and $15.1 million, which is under ASC 606, and $12.0 million, which was under ASC 605, during the six months ended July 31, 2019 and July 31, 2018, respectively.

Impairment of Long-Lived Assets

The Company reviews for impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying amount of the asset (or asset group) may not be recoverable. Events and changes in circumstances considered by the Company in determining whether the carrying value of long-lived assets may not be recoverable, include, but are not limited to: significant changes in performance relative to expected operating results, significant changes in the use of the assets, significant negative industry or economic trends, and changes in the Company’s business strategy. Impairment testing is performed at an asset level that represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (an “asset group”). An impairment loss would be recognized when estimated future cash flows expected to result from the use of the asset (or asset group) and its eventual disposition is less than its carrying amount. No impairment indicators were identified by the Company and no impairment losses were recorded by the Company during the three and six months ended July 31, 2019 and July 31, 2018.

Deferred Revenue

The deferred revenue balance consists of subscription and professional services which have been invoiced upfront and are recognized as revenue only when the revenue recognition criteria are met. The Company typically invoices its customers at the beginning of the term, or in some instances, such as in multi-year arrangements, in installments. Professional services are either invoiced upfront, invoiced in installments, or invoiced as the services are performed. Accordingly, the Company’s deferred revenue balance does not include revenues for future years of multi-year non-cancellable contracts that have not yet been billed.

The Company recognizes subscription revenue ratably over the contract term beginning on the commencement date of each contract, the date that services are made available to customers. Once services are available to customers, the Company records amounts due in accounts receivable and in deferred revenue. To the extent the Company bills customers in advance of the contract commencement date, the accounts receivable and corresponding deferred revenue amounts are netted to zero on the condensed consolidated balance sheets, unless such amounts have been paid as of the balance sheet date.

Redeemable Convertible Preferred Stock Warrants

Warrants related to the Company’s redeemable convertible preferred stock are classified as liabilities on the Company’s consolidated balance sheet. The warrants are subject to reassessment at each balance sheet date, and any change in fair value is recognized as a component of Other expense, net, in the condensed consolidated statements of operations. The Company will continue to adjust the liability for changes in fair value until the earlier of the expiration or exercise of the warrants, or upon their automatic conversion into warrants to purchase common stock in connection with a qualified initial public offering (as defined in Note 7, Redeemable Convertible Preferred Stock) such that they qualify for equity classification and no further remeasurement is required.

Immediately prior to the closing of the IPO on June 14, 2019, the redeemable convertible preferred stock warrants also converted into 336,386 warrants to purchase Class B common stock on a one-to-one basis. The redeemable convertible preferred stock warrant liability was reclassified to additional paid-in capital. Within the same month, the Company received notice from the holders of 336,386 shares as to their intentions to convert the warrants into shares of common stock of the Company. Such shares were settled via net settlement method, which was elected by the holders to reduce the number of shares issued upon exercise to reflect net settlement of the exercise price, resulting in the issuance of 322,278 shares of the Company’s common stock.

Revenue Recognition – ASC 606

The Company adopted ASC 606 on February 1, 2019, using the modified retrospective transition method. Under this method, results for reporting periods beginning on February 1, 2019 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with prior accounting under Topic 605. The Company has shown the effect of applying ASC 606 for the three months ended July 31, 2019 and the six months ended July 31, 2019 in the disclosures below.

The Company recorded a cumulative effect adjustment to opening accumulated deficit of $23.4 million, net of tax, as of the date of adoption. The change resulted from a net decrease of $23.7 million in the amortization of deferred contract acquisition costs, which represented a $6.4 million decrease in short-term and $30.1 million increase in long-term deferred contract acquisition cost. This change was offset by a $0.3 million reduction in revenue.

The following tables summarize the effect of the adoption of Topic 606 on the Company’s select line items included in the condensed consolidated financial statements as of and for the three months ended July 31, 2019 and the six months ended July 31, 2019, as if the previous accounting was in effect:


	July 31, 2019
	As Reported		Impact of		Without Adoption
	(ASC 606)		Adoption		(ASC 605)
	(in thousands)
Condensed Consolidated Balance Sheet

Assets:
Deferred contract acquisition costs, current	$	34,017	$	381	$	34,398
Deferred contract acquisition costs, noncurrent		41,766		(33,523)		8,243

Liabilities:
Accrued expenses		32,568		(555)		32,013
Deferred revenue, current		279,951		(168)		279,783
Deferred revenue, noncurrent		89,811		—		89,811

Stockholders' Equity:
Accumulated deficit		(573,574)		(32,419)		(605,993)


	Three Months Ended July 31, 2019
	As Reported		Impact of		Without Adoption
	(ASC 606)		Adoption		(ASC 605)
	(in thousands)
Condensed Consolidated Statement of Operations

Revenue	$	108,108	$	(83)	$	108,025
Operating expenses:
Sales and marketing		65,274		4,621		69,895

Net loss		(51,889)		(4,703)		(56,592)

Net loss per share, basic and diluted	$	(0.40)			$	(0.44)


	Six Months Ended July 31, 2019
	As Reported		Impact of		Without Adoption
	(ASC 606)		Adoption		(ASC 605)
	(in thousands)
Condensed Consolidated Statement of Operations

Revenue	$	204,185	$	(165)	$	204,020
Operating expenses:
Sales and marketing		122,117		8,837		130,954

Net loss		(77,866)		(9,002)		(86,868)

Net loss per share, basic and diluted	$	(0.87)			$	(0.97)

The adoption of Topic 606 had no impact on net cash provided by or used in operating, investing, or financing activities in the Company’s condensed consolidated statement of cash flows for the three or six months ended July 31, 2019.

In accordance with ASC 606, revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration that the Company expects to be entitled to receive in exchange for these services. To achieve the core principle of this standard, the Company applies the following five steps:

Identify the contract with a customer

The Company considers the terms and conditions of contracts with customers and its customary business practices in identifying contracts under ASC 606. The Company determines it has a contract with a customer when the contract is approved, each party’s rights regarding the services to be transferred can be identified, payment terms for the services can be identified, it has been determined that the customer has the ability and intent to pay, and the contract has commercial substance. The Company applies judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, credit and financial information pertaining to the customer.

Identify the performance obligations in the contract

Performance obligations promised in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from the Company or from third parties, and are distinct in the context of the contract, whereby the transfer of the services is separately identifiable from other promises in the contract. The Company’s performance obligations consist of (i) subscriptions and (ii) professional services.

Determine the transaction price

The transaction price is determined based on the consideration which the Company is expected to be entitled to in exchange for transferring services to the customer. Variable consideration is included in the transaction price if it is probable that a significant future reversal of cumulative revenue under the contract will not occur. None of the Company’s contracts contain a significant financing component.

Allocate the transaction price to performance obligations in the contract

If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price ("SSP").

Recognize revenue when or as performance obligations are satisfied

Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised service to the customer. Revenue is recognized when control of the services is transferred to the customer, in an amount that reflects the consideration expected to be received in exchange for those services. The Company generates all its revenue from contracts with customers.

Subscription Revenue

The Company’s Falcon Platform technology solutions are subscription, software as a service (“SaaS”) offerings designed to continuously monitor, share, and mitigate risks from determined attackers. Customers do not have the right to take possession of the cloud-based software platform. Fees are based on several factors, including the solutions subscribed for by the customer and the number of endpoints purchased by the customer. The subscription fees are typically payable within 30 to 60 days after the execution of the arrangement, and thereafter upon renewal or subsequent installment. The Company initially records the subscription fees as deferred revenue and recognizes revenue on a straight-line basis over the term of the agreement.

The typical subscription term is one to three years. Most of the Company’s contracts are non-cancelable over the contractual term. Customers typically have the right to terminate their contracts for cause if the Company fails to

perform in accordance with the contractual terms. Some customers have the option to purchase additional subscription at a stated price. These options generally do not provide a material right as they are priced at our SSP.

Professional Services Revenue

The Company offers several types of professional services including incident response and forensic services, surge forensic and malware analysis, and attribution analysis, which are focused on responding to imminent and direct threats, assessing vulnerabilities, and recommending solutions. These services are distinct from subscription services. Professional services do not result in significant customization of the subscription service. The professional services are available through hourly rate and fixed fee contracts, one-time and ongoing engagements, and retainer-based agreements. Revenue for time and materials arrangements is recognized as services are performed and revenue for fixed fees is recognized on a proportional performance basis as the services are performed.

Contracts with Multiple Performance Obligations

Some contracts with customers contain multiple promised services consisting of subscription and professional services that are distinct and accounted for separately. The transaction price is allocated to the separate performance obligations on a relative SSP basis. The SSP is the price at which the Company would sell promised subscription or professional services separately to a customer. Judgment is required to determine the SSP for each distinct performance obligation. The Company determines SSP based on its overall pricing objectives, taking into consideration the type of subscription or professional service and the number of endpoints.

Variable Consideration

Revenue from sales is recorded at the net sales price, which is the transaction price, and includes estimates of variable consideration. The amount of variable consideration that is included in the transaction price is constrained and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue will not occur when the uncertainty is resolved.

If subscriptions do not meet certain service level commitments, the Company’s customers are entitled to receive service credits, and in certain cases, refunds, each representing a form of variable consideration. The Company has historically not experienced any significant incidents affecting the defined levels of reliability and performance as required by its subscription contracts. Accordingly, any estimated refunds related to these agreements in the condensed consolidated financial statements is not material during the periods presented.

The Company provides rebates and other credits within its contracts with certain resellers, which are estimated based on the most likely amounts expected to be earned or claimed on the related sales transaction. Overall, the transaction price is reduced to reflect the Company’s estimate of the amount of consideration to which it is entitled based on the terms of the contract. Estimated rebates and other credits were not material during the periods presented.

Revenue Recognition – ASC 605

Prior to adopting ASC 606 on February 1, 2019, the Company recognized subscription and professional services when: (1) persuasive evidence of the contract exists in the form of a written contract, amendments to that contract, or purchase orders from a third party; (2) delivery has occurred, or services have been rendered; (3) the price is fixed or determinable; and (4) collectability is reasonably assured based on customer creditworthiness and history of collection.

The timing and the amount the Company recognized as revenue was determined based on the facts and circumstances of each customer’s arrangements. Evidence of an arrangement consisted of a signed customer agreement. The Company considered that the delivery of its solution had commenced once it provided the customer with log-in information and the term of the contract had started. Fees were fixed based on stated rates specified in the customer agreement. The Company assessed collectability based on several factors, including the credit worthiness of the

customer and transaction history. If collectability was not reasonably assured, revenue was deferred until the fees were collected.

For arrangements that involve the contemporaneous sale of subscription and professional services, the Company applied the multiple-element arrangement guidance to allocate the arrangement consideration to all deliverables based on their relative selling price. The Company determined that the cloud-based platform subscription has standalone value, because once access is given to the customer, the solutions are fully functional and do not require any additional development, modification, or customization. Professional services have standalone value because they are regularly sold by the Company in separate transactions. Additionally, the performance of these professional services generally does not require highly specialized or technologically skilled individuals and the professional services are not essential to the functionality of the solutions.

The Company used a hierarchy to determine the selling price to be used for allocating revenue to deliverables: (i) vendor-specific objective evidence of fair value (‘‘VSOE’’); (ii) third-party evidence of selling price (‘‘TPE’’); and (iii) best estimate of selling price (‘‘BESP’’). BESP reflected the Company’s best estimates of what the selling prices of elements would be if they were sold regularly on a stand-alone basis. The Company’s process for determining BESP involved management’s judgment and considered numerous factors including the nature of the deliverables themselves and historical discounting practices. The Company updated its estimates of BESP on an ongoing basis as events and circumstances required.

Research and Development Expense

Research and development costs are expensed when incurred, except for certain internal-use software development costs, which may be capitalized as noted above. Research and development expenses consist primarily of personnel and related headcount costs, costs of professional services associated with the ongoing development of the Company’s technology, and allocated overhead.

Advertising

All advertising costs are expensed as incurred and are included in sales and marketing expense in the condensed consolidated statements of operations. The Company incurred $2.2 million and $0.6 million of advertising costs during the three months ended July 31, 2019 and July 31, 2018, respectively, and $3.3 million and $1.1 million during the six months ended July 31, 2019 and July 31, 2018, respectively.

Stock-Based Compensation

The Company accounts for stock-based awards granted to employees and directors based on the awards’ estimated grant date fair value. The Company estimates the fair value of its stock options using the Black-Scholes option-pricing model. The resulting fair value is recognized on a straight-line basis over the period during which the employee or director is required to provide service in exchange for the award, usually the vesting period, which is generally four years. The Company accounts for forfeitures as they occur.

Prior to the Company’s adoption of ASU 2018-07, stock-based awards issued to non-employees were accounted for at fair value determined by using the Black-Scholes option-pricing model. The Company believes that the fair value of the stock options is more reliably measured than the fair value of the services received. The fair value of each non-employee stock-based award is remeasured each period until a commitment date is reached, which is generally the vesting date. The Company early adopted ASU 2018-07 on February 1, 2019 and began accounting for stock-based awards issued to non-employees the same as it accounts for stock-based awards issued to employees. The effect on the Company’s condensed consolidated financial statements for the three and six months ended July 31, 2019 was not material.

Restricted stock units ("RSUs") granted under the 2011 Plan are subject to a service-based vesting condition and a performance-based vesting condition. The service-based vesting condition is generally satisfied based on one of three vesting schedules: (i) vesting of one-fourth of the RSUs on the first "Company vest date" (defined as March 20,

June 20, September 20, or December 20) on or following the one-year anniversary of the vesting commencement date with the remainder of the RSUs vesting in twelve equal quarterly installments thereafter, subject to continued service, (ii) vesting in sixteen equal quarterly installments beginning on December 20, 2018, subject to continued service, or (iii) vesting in eight equal quarterly installments beginning on December 20, 2022, subject to continued service. The performance-based vesting condition is satisfied on the earlier of (i) a change in control, in which the consideration paid to holders of shares is either cash, publicly traded securities, or a combination thereof, or (ii) the first Company vest date to occur following the expiration of the lock-up period upon an IPO, subject to continued service through such change in control or lock-up expiration, as applicable. None of the RSUs vest unless the performance-based vesting condition is satisfied. Upon the completion of the IPO, the performance-based vesting condition was met and the Company recognized $17.3 million of deferred expense related to RSUs as of that date in its condensed consolidated statement of operations.

Business Combinations

The Company allocates the fair value of purchase consideration to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired users, acquired technology, trade names from a market participant perspective, useful lives and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, which is one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded in the condensed consolidated statement of operations.

Goodwill and Intangible Assets

The Company evaluates and tests the recoverability of goodwill for impairment at least annually, on January 31, or more frequently if circumstances indicate that goodwill may not be recoverable. The Company performs the impairment testing by first assessing qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of its reporting unit is less than its carrying amount. The Company has one reporting unit. If, after assessing the totality of events or circumstances, the Company determines it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company performs the first step of a two-step analysis by comparing the book value of net assets to the fair value of the reporting unit. To calculate any potential impairment, the Company compares the fair value of a reporting unit with its carrying amount, including goodwill. Any excess of the carrying amount of the reporting unit’s goodwill over its fair value is recognized as an impairment loss, and the carrying value of goodwill is written down. In assessing the qualitative factors, the Company considers the impact of certain key factors including macroeconomic conditions, industry and market considerations, management turnover, changes in regulation, litigation matters, changes in enterprise value, and overall financial performance. No impairment was recorded during the three and six months ended July 31, 2019 or July 31, 2018. The change in goodwill balance during the three and six months ended July 31, 2019 and July 31, 2018 was due to changes in foreign currency exchange rates.

Acquired intangible assets consisting of identifiable intangible assets, were comprised of developed technology, customer relationships, and non-compete agreements resulting from acquisitions. Acquired intangible assets are recorded at fair value on the date of acquisition and amortized over their estimated economic lives following the pattern in which the economic benefits of the assets will be consumed which is on a straight-line basis. Acquired intangible assets are presented net of accumulated amortization on the condensed consolidated balance sheets. The Company reviews the carrying amounts of intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. The Company measures the recoverability of intangible assets by comparing the carrying amount of each asset to the future undiscounted cash flows it expects the asset to generate. If the Company considers any of these assets to be impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair value. In addition, the Company periodically evaluates the estimated

remaining useful lives of long-lived assets to determine whether events or changes in circumstances warrant a revision to the remaining period of depreciation or amortization.

Leases

The Company leases its office space under various noncancelable operating lease agreements and recognizes related rent expense on a straight-line basis over the term of the lease. Certain lease agreements contain rent holidays, scheduled rent increases, lease incentives, and renewal options. Rent holidays and scheduled rent increases are included in the determination of rent expense to be recorded over the lease term. Lease incentives are recognized as a reduction of rent expense on a straight-line basis over the term of the lease. Renewals are not assumed in the determination of the lease term unless they are deemed to be reasonably assured at the inception of the lease. The Company begins to recognize rent expense on the date that the Company obtains the legal right to use and control the leased space.

Foreign Currency Translation

The functional currencies of the Company’s foreign subsidiaries are each country’s local currency. Assets and liabilities of the subsidiaries are translated into U.S. Dollars at exchange rates in effect at the reporting date. Amounts classified in stockholders’ deficit are translated at historical exchange rates. Revenue and expenses are translated at the average exchange rates during the period. The resulting translation adjustments are recorded in accumulated other comprehensive income (loss). Foreign currency transaction gains or losses, whether realized or unrealized, are reflected in the condensed consolidated statements of operations within Other expense, net, and have not been material for all periods presented.

Income Taxes

The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between the financial statement and tax basis of assets and liabilities and net operating loss and credit carryforwards using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized.

The Company accounts for unrecognized tax benefits using a more-likely-than-not threshold for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. The Company establishes a liability for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. The Company records an income tax liability, if any, for the difference between the benefit recognized and measured and the tax position taken or expected to be taken on the Company’s tax returns. To the extent that the assessment of such tax positions changes, the change in estimate is recorded in the period in which the determination is made. The liability is adjusted considering changing facts and circumstances, such as the outcome of a tax audit. The provision for income taxes includes the impact of liability provisions and changes to the liability that are considered appropriate. As the Company maintained a full valuation allowance against its deferred tax assets, the changes resulted in no additional tax expense during the three and six months ended July 31, 2019 or July 31, 2018. As of July 31, 2019, the Company does not expect that changes in the liability for unrecognized tax benefits for the next twelve months will have a material impact on its condensed consolidated financial statements.

Sales Taxes

When sales and other taxes are billed, such amounts are recorded as accounts receivable with a corresponding increase to other current liabilities, respectively. The balances are then removed from the condensed consolidated balance sheet as cash is collected from the customer and as remitted to the respective tax authority.

Segment and Geographic Information

The Company’s chief operating decision maker (“CODM”) is its chief executive officer. The CODM reviews financial information presented on a consolidated basis for the purposes of allocating resources and evaluating financial

performance. Accordingly, management has determined that the Company operates as one operating and reportable segment. The Company presents financial information about its geographic areas in Note 12 to the condensed consolidated financial statements.

Net Loss per Share

The Company computes basic and diluted net loss per share attributable to common stockholders for Class A and Class B common stock using the two-class method required for participating securities. The Company considers all series of its redeemable convertible preferred stock to be participating securities. Net loss is attributed to Class A and Class B common stock based on their participation rights. Under the two-class method, basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period.

Diluted earnings per share attributable to common stockholders adjusts basic earnings per share for the potentially dilutive impact of stock options and redeemable convertible preferred stock. As the Company has reported losses for all periods presented, all potentially dilutive securities including redeemable convertible preferred stock, stock options, and warrants, are antidilutive and accordingly, basic net loss per share equals diluted net loss per share.

Recently Adopted Accounting Pronouncements

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which provides guidance for revenue recognition. Under the new guidance, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. In addition, the guidance requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Subsequently, the FASB has issued the following guidance to amend ASU 2014-09: ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date; ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net); ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing; ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients; and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, which clarifies narrow aspects of Topic 606 or corrects unintended application of the guidance. The Company must adopt ASU No. 2015-14, ASU No. 2016-08, ASU No. 2016-10, ASU No. 2016-12, and ASU No. 2016-20 with ASU No. 2014-09, which are referred to collectively as the “new revenue guidance.” On February 1, 2019, the company adopted ASU No. 2014-09 using the modified retrospective transition method. Under this method, results for reporting periods beginning on February 1, 2019 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historical accounting under Topic 605. The Company recorded a cumulative effect adjustment to opening accumulated deficit of $23.4 million, net of tax, as of the date of adoption. The change resulted from a $23.7 million reduction in commissions expense that we capitalized under Topic 606, but would have been recognized during the period as commissions expense under our historical accounting practices under Topic 605 and a $0.3 million reduction in revenue that would have been recognized during the period under Topic 605.

In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. If substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, the set of transferred assets and activities is not a business. On February 1, 2019, the Company adopted ASU No. 2018-07, which did not have a material effect on the Company’s condensed consolidated financial statements.

In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. This ASU simplifies the accounting for share-based payments to nonemployees by aligning it with the accounting for share-based payments to employees, with certain exceptions. This ASU is effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. For all other entities, this ASU is effective for fiscal years beginning after

December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, but no earlier than the adoption date of Topic 606. On February 1, 2019, the Company adopted ASU No. 2018-07, which did not have a material effect on the Company’s condensed consolidated financial statements.

In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification. This release amends certain disclosure requirements that have become redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders’ equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders’ equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. The final rule was effective November 5, 2018. The Company adopted this amendment as of February 1, 2019, including presenting the activity of the stockholder’s equity accounts in the accompanying Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Deficit for the periods presented.

Recently Issued Accounting Pronouncements

Under the JOBS Act, the Company meets the definition of an emerging growth company. The Company has elected to use the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act.

In February 2016, the FASB issued ASU No. 2016-02, Leases. The new guidance supersedes current guidance related to accounting for leases and generally requires an entity to recognize on its balance sheet operating and financing lease liabilities and corresponding right-of-use assets. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842. This ASU makes 16 technical corrections to the new lease standard and other accounting topics, alleviating unintended consequences from applying the new standard. It does not make any substantive changes to the core provisions or principles of the new standard. In July 2018, the FASB also issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements. This ASU provides (1) an optional transition method that entities can use when adopting the standard and (2) a practical expedient that permits lessors to not separate non-lease components from the associated lease component if certain conditions are met. As an emerging growth company as defined in the JOBS Act, the Company has elected to delay adoption of this ASU until February 1, 2020. ASU No. 2016-02 can be adopted using either full or modified retrospective approach as of the earliest period presented or as of the adoption date with the cumulative effect adjustment to the opening balance recognized in retained earnings in the period of adoption. The Company is currently evaluating the potential impact of these ASUs on its condensed consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities to require that credit losses on available-for-sale debt securities be presented as an allowance rather than as a write-down. The measurement of credit losses for newly recognized financial assets and subsequent changes in the allowance for credit losses are recorded in the consolidated statements of operations. For public business entities that are SEC filers, this ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. For all other entities, this ASU is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the potential impact of this ASU on its consolidated financial statements.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU simplifies the measurement of goodwill by eliminating step two of the two-step impairment test. Step two measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. This ASU requires an entity to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. Additionally, an entity should consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. As an emerging growth company defined in the JOBS Act, the Company has elected to delay adoption of

this ASU until February 1, 2022. The Company is currently evaluating the potential impact of this ASU on its condensed consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. This ASU modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. As an emerging growth company as defined in the JOBS Act, the Company has elected to delay adoption of this ASU until February 1, 2020. The Company is currently evaluating the potential impact of this ASU on its condensed consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force). This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal use software. As an emerging growth company defined in the JOBS Act, the Company has elected to delay adoption of this ASU until February 1, 2021. Entities can choose to adopt this ASU prospectively or retrospectively. The Company is currently evaluating the potential impact of this ASU on its condensed consolidated financial statements.

Fair Value Measurements and Marketable Securities

6 Months Ended

Jul. 31, 2019

Fair Value Measurements and Marketable Securities

Fair Value Measurements and Marketable Securities

3. Fair Value Measurements and Marketable Securities

The Company follows ASC 820, Fair Value Measurements, with respect to marketable securities that are measured at fair value on a recurring basis. Under the standard, fair value is defined as the exit price, or the amount that would be received to sell an asset or a liability in an orderly transaction between market participants as of the measurement date. The standard also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances.

The hierarchy is broken down into three levels as follows:

Level 1

Assets and liabilities whose values are based on unadjusted quoted market prices for identical assets and liabilities in active markets

Level 2

Assets and liabilities whose values are based on quoted prices in markets that are not active or inputs that are observable for substantially the full term of the asset or liability

Level 3

Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement

Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

The Company’s fair value hierarchy for its financial assets and liabilities that are measured at fair value on a recurring basis are as follows:


	July 31, 2019								January 31, 2019
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	(in thousands)								(in thousands)
Assets
Cash equivalents⁽¹⁾
Money market funds	$	698,945	$	—	$	—	$	698,945	$	42,132	$	—	$	—	$	42,132
Corporate debt securities		—		15,008		—		15,008		—		27,941		—		27,941
Total cash equivalents		698,945		15,008		—		713,953		42,132		27,941		—		70,073
Marketable securities
Corporate debt securities		—		79,985		—		79,985		—		91,796		—		91,796
U.S. treasury securities		14,018		—		—		14,018		11,451		—		—		11,451
Total marketable securities		14,018		79,985		—		94,003		11,451		91,796		—		103,247
Total assets	$	712,963	$	94,993	$	—	$	807,956	$	53,583	$	119,737	$	—	$	173,320
Liability
Contingent consideration related to business combinations⁽²⁾		—		—		—		—		—		—	$	474	$	474
Redeemable convertible preferred stock warrant liability ⁽³⁾		—		—		—		—		—		—		4,537		4,537
Total liabilities	$	—	$	—	$	—	$	—	$	—	$	—	$	5,011	$	5,011

(1)	Included in “Cash and cash equivalents” on the condensed consolidated balance sheets.

(2)

The contingent consideration consists of development milestone payments. The fair value of the contingent consideration was estimated by developing the risk-adjusted discounted value as well as discounted probability-weighted expected payments. That measure is based on Level 3 inputs which are significant inputs that are not observable in the market. Key assumptions at the acquisition date included (a) a discount rate range of 3%-3.02% and (b) three probability-adjusted milestone payments, each $0.2 million. As of January 31, 2019, the first milestone payment of $0.2 million had been made. During the three months ended April 30, 2019, the remaining milestones were deemed not probable of being paid and the remaining contingent consideration of $0.5 million was written off to Other expense, net.

(3)

There were no transfers between the levels of the fair value hierarchy during the three and six months ended July 31, 2019 or July 31, 2018.

The securities that had been in continuous unrealized loss position per security type and in aggregate are not material as of July 31, 2019 and January 31, 2019. There were no impairments considered “other-than-temporary” as it is more likely than not we will hold the securities until maturity or a recovery of the cost basis.

The remaining contractual maturities of marketable securities as of July 31, 2019 and January 31, 2019 were less than one year.

The following summarizes the changes in the redeemable convertible preferred stock warrant liability, which is classified as a Level 3 instrument:


	Three Months Ended July 31,				Six Months Ended July 31,
	2019		2018		2019		2018
	(in thousands)				(in thousands)

Balance at beginning of period	$	5,704	$	961	$	4,537	$	961
Adjustment resulting from change in fair value recognized in the condensed consolidated statements of operations		4,855		2,055		6,022		2,055
Reclassification of liability for redeemable convertible preferred stock warrants to additional paid-in capital upon initial public offering		(10,559)		—		(10,559)		—
Balance at end of period	$	—	$	3,016	$	—	$	3,016

The fair value of the redeemable convertible preferred stock warrant liability was estimated using the Black-Scholes option-pricing model and was based on significant inputs not observable in the market, and therefore was classified as a Level 3 instrument. The inputs include the Company’s preferred stock price, expected stock price volatility, risk-free interest rate, and contractual term. A loss of $4.9 million and $2.1 million was recorded as a component of Other expense, net, relating to the final remeasurement of the redeemable convertible preferred stock warrant liability during the three months ended July 31, 2019 and July 31, 2018, respectively, and a loss of $6.0 million and $2.1 million during the six months ended July 31, 2019 and July 31, 2018, respectively.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Balance Sheet Components

6 Months Ended

Jul. 31, 2019

Balance Sheet Components

Balance Sheet Components

4. Balance Sheet Components

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following:


	July 31,		January 31,
	2019		2019
	(in thousands)

Prepaid expenses	$	22,671	$	14,390
Prepaid hosting services		4,280		2,915
Other current assets		2,397		1,105
Prepaid expenses and other current assets	$	29,348	$	18,410

Property and Equipment, Net

Property and equipment, net consisted of the following:


	July 31,		January 31,
	2019		2019
	(in thousands)

Data center and other computer equipment	$	55,980	$	44,735
Capitalized internal-use software		25,764		22,209
Leasehold improvements		9,916		10,011
Purchased software		1,757		1,460
Furniture and equipment		3,417		2,553
Construction in process		47,991		19,455
		144,825		100,423
Less: Accumulated depreciation and amortization		(36,836)		(26,688)
Property and equipment, net	$	107,989	$	73,735

Construction in process mainly includes data center equipment purchased that has not yet been placed in service. As of July 31, 2019, $47.0 million of data center equipment was purchased but not yet been placed into service.

Depreciation and amortization expense of property and equipment was $5.3 million and $3.4 million during the three months ended July 31, 2019 and July 31, 2018, respectively, and $10.2 million and $6.4 million during the six months ended July 31, 2019 and July 31, 2018, respectively.

Intangible Assets, Net

Total intangible assets, net consisted of the following:


					Weighted-Average
	July 31,		January 31,		Remaining Useful
	2019		2019		Life
	(in thousands)				(in months)

Developed technology	$	1,246	$	1,269	15
Customer relationships		613		632	39
Non-compete agreement		123		126	15
		1,982		2,027
Less: Accumulated amortization		(1,244)		(979)
Intangible assets, net	$	738	$	1,048

Amortization of developed technology, customer relationships, and non-compete agreement are recorded within cost of revenue, sales and marketing expense, and research and development expense, respectively, in the condensed consolidated statements of operations. Amortization expense of intangible assets was $0.1 million and $0.2 million during the three months ended July 31, 2019 and July 31, 2018, respectively, and $0.3 million and $0.4 million during the six months ended July 31, 2019 and July 31, 2018, respectively.

The estimated aggregate future amortization expense of intangible assets as of July 31, 2019 is as follows:


	Total
	(in thousands)

Fiscal 2020 (remaining six months)	$	206
Fiscal 2021		324
Fiscal 2022		123
Fiscal 2023		85
Fiscal 2024		—
Total amortization expense	$	738

The developed technology, customer relationships, and non-compete agreement assets are being amortized over 3 years, 5 years, and 3 years, respectively.

Accrued Expenses

Accrued expenses consisted of the following:


	July 31,		January 31,
	2019		2019
	(in thousands)

Web hosting services	$	7,478	$	12,224
Accrued purchases of property and equipment		10,701		7,042
Other vendor expenses		12,707		12,326
Amounts due for employee expenses		1,682		949
Accrued expenses	$	32,568	$	32,541

Accrued Payroll and Benefits

Accrued payroll and benefits consisted of the following:


	July 31,		January 31,
	2019		2019
	(in thousands)

Accrued payroll and related expenses	$	5,686	$	4,326
Accrued bonuses		5,433		5,459
Accrued commissions		8,938		9,499
Accrued payroll and benefits	$	20,057	$	19,284

Secured Revolving Credit Facility

6 Months Ended

Jul. 31, 2019

Secured Revolving Credit Facility

Secured Revolving Credit Facility

5. Secured Revolving Credit Facility

In April 2019, the Company entered into a Credit Agreement with Silicon Valley Bank and other lenders, to provide a revolving line of credit of up to $150.0 million, including a letter of credit sub-facility in the aggregate amount of $10.0 million, and a swingline sub-facility in the aggregate amount of $10.0 million. The Company also has the option to request an incremental facility of up to an additional $75.0 million from one or more of the lenders under the Credit Agreement. The amount the Company may borrow under the Credit Agreement may not exceed the lesser of $150.0 million or the Company’s ordinary course recurring subscription revenue for the most recent month, as determined under the Credit Agreement, multiplied by a number that is (i) 6, for the first year after entry into the Credit Agreement; (ii) 5, for the second year after entry into the Credit Agreement; and (iii) 4, thereafter. Under the terms of the Credit Agreement, revolving loans may be either Eurodollar Loans or ABR Loans. Outstanding Eurodollar Loans incur interest at the Eurodollar Rate, which is defined in the Credit Agreement as LIBOR (or any successor thereto), plus a margin between 2.75% and 3.25%, depending on usage. Outstanding ABR Loans incur interest at the highest of (a) the

Prime Rate, as published by the Wall Street Journal, (b) the federal funds rate in effect for such day plus 0.50%, and (c) the Eurodollar Rate plus 1.00%, in each case plus a margin between 1.75% and 2.25%, depending on usage. The applicable margin for Eurodollar Loans and ABR Loans will be reduced by 0.25% upon the completion of an initial public offering of at least $100.0 million in gross proceeds. The Company will be charged a commitment fee of 0.2% to 0.3% per year for committed but unused amounts. The Credit Agreement will terminate on April 19, 2022.

The Credit Agreement is collateralized by substantially all of the Company’s current and future property, rights, and assets, including, but not limited to, cash, goods, equipment, contractual rights, financial assets, and intangible assets of the Company and its subsidiaries. The Credit Agreement contains covenants limiting the ability to, among other things, dispose of assets, undergo a change in control, merge or consolidate, make acquisitions, incur debt, incur liens, pay dividends, repurchase stock, and make investments, in each case subject to certain exceptions. The Credit Agreement also contains financial covenants requiring the Company to maintain the year-over-year growth rate of its ordinary course recurring subscription revenue above specified rates and to maintain minimum liquidity at specified levels. The Company was in compliance with all covenants as of July 31, 2019. The Credit Agreement contains events of default that include, among others, non-payment of principal, interest, or fees, breach of covenants, inaccuracy of representations and warranties, cross defaults to certain other indebtedness, bankruptcy and insolvency events, and material judgments.

No amounts were outstanding under the Credit Agreement as of July 31, 2019 or January 31, 2019.

Income Taxes

6 Months Ended

Jul. 31, 2019

Income Taxes

Income Taxes

6. Income Taxes

The Company recognized an income tax expense of $0.6 million and $0.4 million for the three months ended July 31, 2019 and July 31, 2018, respectively and $1.2 million and $0.5 million for the six months ended July 31, 2019 and 2018, respectively. The tax expense for the three and six months ended July 31, 2019 was primarily attributable to pre-tax foreign earnings. The Company’s effective tax rates of (1.5%) and (1.6 %) for the three and six months ended July 31, 2019 and July 31, 2018, respectively, differ from the U.S. statutory tax rate primarily due to valuation allowance recorded against domestic losses and the tax rate differences between the United States and foreign countries.

The Company has a full valuation allowance on its U.S. federal and state deferred tax assets. As a result, consistent with the prior year, the Company is unable to record a tax benefit on these losses because of uncertainty of future profitability.

Redeemable Convertible Preferred Stock

6 Months Ended

Jul. 31, 2019

Redeemable Convertible Preferred Stock

Redeemable Convertible Preferred Stock

7. Redeemable Convertible Preferred Stock

Upon the close of the Company’s IPO on June 14, 2019, all shares of convertible preferred stock then outstanding, totaling 131,267,586 shares, were automatically converted into an equivalent number of shares of Class B

common stock on a one-to-one basis and the carrying value, totaling $557.9 million, was reclassified into Class B common stock and additional paid-in capital on the condensed consolidated balance sheet.

The following table summarizes the authorized, issued, and outstanding redeemable convertible preferred stock of the Company as of January 31, 2019:


				Shares	Net
	Issue Price		Shares	Issued and	Carrying		Liquidation		Redemption
Class	per Share		Authorized	Outstanding	Value		Preference		Value
	(in thousands, except per share values)

Series A-1	$	0.50000	52,300	52,300	$	76,325	$	52,300	$	623,678
Series B		1.40500	21,523	21,352		44,320		30,000		254,623
Series C		4.52972	22,275	22,077		99,900		100,000		263,765
Series D		5.69153	17,570	17,570		99,845		125,000		211,631
Series D-1		5.69153	5,394	5,394		30,626		30,700		64,607
Series E		16.46136	18,357	12,575		206,896		207,000		207,000
Total			137,419	131,268		557,912		545,000		1,625,304

Common Stock

6 Months Ended

Jul. 31, 2019

Common Stock

Common Stock

8. Common Stock

In connection with the IPO, on June 14, 2019, the Company filed an Amended and Restated Certificate of Incorporation which authorizes the issuance of 2,000,000,000 shares of Class A common stock with a par value of $0.0005 per share, 300,000,000 shares of Class B common stock with a par value of $0.0005 per share, and 100,000,000 shares of undesignated preferred stock with a par value of $0.0005 per share. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting and conversion rights. Each share of Class A common stock is entitled to one vote per share. Each share of Class B common stock is entitled to ten votes per share and is convertible into one share of Class A common stock. Class A and Class B common stockholders are not entitled to receive dividends unless declared by our board of directors.

Stock-Based Compensation

6 Months Ended

Jul. 31, 2019

Stock-Based Compensation

Stock-Based Compensation

9. Stock-Based Compensation

Stock Incentive Plan

In May 2019, the Company’s board of directors adopted, and the stockholders approved the CrowdStrike Holdings, Inc. 2019 Equity Incentive Plan (the "2019 Plan") with the purpose of granting stock-based awards to employees, directors, officers and consultants, including stock options, restricted stock awards, restricted stock units and performance-based restricted stock units. A total of 8,750,000 shares of Class A common stock were initially available for issuance under the 2019 Plan. The Company’s compensation committee administers the 2019 Plan. The number of shares of our common stock available for issuance under the 2019 Plan is subject to an annual increase on the first day of each fiscal year beginning on February 1, 2020, equal to the lesser of: (i) two percent (2%) of outstanding shares of the Company’s capital stock as of the last day of the immediately preceding fiscal year or (ii) such other amount as our board of directors may determine.

The 2011 Plan was terminated on June 10, 2019, which was the business day prior to the effectiveness of the Company's registration statement on Form S-1 used in connection with the Company's IPO, and stock-based awards are no longer granted under the 2011 Plan. Any shares underlying stock options that expire or terminate or are forfeited or repurchased under the 2011 Plan will be automatically transferred to the 2019 Plan. The maximum number of shares of common stock, that could have been issued pursuant to the 2011 Plan was 79,498,016 as of January 31, 2019.

Stock Options

The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option-pricing model with the assumptions included in the table below. The expected term represents the period that the Company’s share-based awards are expected to be outstanding. The expected term assumptions were determined based on the vesting terms, exercise terms, and contractual lives of the options. The expected stock price volatility is based upon comparable public company data. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the estimated option life.

The fair value of each option was estimated on the date of grant using the following assumptions during the period:


	Six Months Ended July 31,
	2019		2018

Expected term (in years)	6.05		6.05
Risk-free interest rate	2.0	%	2.9	%
Expected stock price volatility	37.7	%	38.1	%
Dividend yield	—	%	—	%

The following table is a summary of stock option activity for the six months ended July 31, 2019:


		Weighted-
		Average
	Number of	Exercise Price
	Shares	Per Share
	(in thousands)

Options outstanding at January 31, 2019	26,535	$	3.87
Granted	880	$	14.65
Exercised	(706)	$	2.14
Canceled	(509)	$	7.34
Options outstanding as of April 30, 2019	26,200	$	4.21
Granted	168	$	34.00
Exercised	(4,776)	$	3.62
Canceled	(325)	$	5.06
Options outstanding at July 31, 2019	21,267	$	4.56
Options vested and expected to vest at July 31, 2019	21,267	$	4.56
Options exercisable at July 31, 2019	10,810	$	1.97

Options exercisable include 1,107,201 options that were unvested as of July 31, 2019.

The aggregate intrinsic value of options vested and exercisable was $1,034 million and $181.1 million as of July 31, 2019 and January 31, 2019, respectively. The weighted-average remaining contractual term of options vested and exercisable was 6.5 years and 7.1 years as of July 31, 2019 and January 31, 2019, respectively.

The weighted-average grant date fair values of all options granted was $13.45 and $5.36 per share during the three months ended July 31, 2019 and July 31, 2018, respectively, and $9.51 and $5.36 per share during the six months ended July 31, 2019 and July 31, 2018, respectively. The total intrinsic value of all options exercised was $80.9 million and $6.6 million during the three months ended July 31, 2019 and July 31, 2018, respectively, and $89.7 million and $7.6 million during the six months ended July 31, 2019 and July 31, 2018, respectively.

The aggregate intrinsic value of stock options outstanding as of July 31, 2019 and January 31, 2019 was $1,797.2 million and $286.1 million, respectively, which represents the excess of the fair value of the Company’s common stock over the exercise price of the options multiplied by the number of options outstanding. The

weighted-average remaining contractual term of stock options outstanding was 7.5 years and 7.9 years as of July 31, 2019 and January 31, 2019, respectively.

Total unrecognized stock-based compensation expense related to unvested options was $44.5 million as of July 31, 2019. This expense is expected to be amortized on a straight-line basis over a weighted-average vesting period of 2.5 years. Total unrecognized stock-based compensation expense related to unvested options was $45.8 million as of January 31, 2019. This expense is expected to be amortized on a straight-line basis over a weighted-average vesting period of 3.4 years.

Early Exercise of Employee Options

The 2011 Stock Plan allows for the early exercise of stock options for certain individuals as determined by the Board of Directors. The consideration received for an early exercise of an option is a deposit of the exercise price and the related dollar amount is recorded as a liability for early exercise of unvested stock options in the condensed consolidated balance sheets. This liability is reclassified to additional paid-in capital as the awards vest. If a stock option is early exercised, the unvested shares may be repurchased by the Company in case of employment termination or for any reason, including death and disability, at the price paid by the purchaser for such shares. During both the three months ended July 31, 2019 and the six months ended July 31, 2019, the Company issued 1,037,356 shares of common stock related to early exercised stock options. As of July 31, 2019, the number of shares of common stock related to early exercised stock options subject to repurchase was 1,316,192 shares for $10.5 million. As of January 31, 2019, the number of shares of common stock related to early exercised stock options subject to repurchase was 545,941 shares for $1.2 million. Common stock purchased pursuant to an early exercise of stock options is not deemed to be outstanding for accounting purposes until those shares vest. The Company includes unvested shares subject to repurchase in the number of shares outstanding on the statement of redeemable convertible preferred stock and stockholders’ deficit.

Restricted Stock Units

Beginning in September 2018, the Company began issuing RSUs to certain employees. These RSUs include a service-based vesting condition and a performance-based vesting condition. The service-based vesting condition is generally satisfied based on one of three vesting schedules: (i) vesting of one-fourth of the RSUs on the first “Company vest date” (defined as March 20, June 20, September 20, or December 20) on or following the one-year anniversary of the vesting commencement date with the remainder of the RSUs vesting in twelve equal quarterly installments thereafter, subject to continued service, (ii) vesting in sixteen equal quarterly installments beginning on December 20, 2018, subject to continued service, or (iii) vesting in eight equal quarterly installments beginning on December 20, 2022, subject to continued service. The performance-based vesting condition is satisfied on the earlier of (i) a change in control, in which the consideration paid to holders of shares is either cash, publicly traded securities, or a combination thereof, or (ii) the first Company vest date to occur following the expiration of the lock-up period upon an IPO, subject to continued service through such change in control or lock-up expiration, as applicable. None of the RSUs vest unless the performance-based vesting condition is satisfied. Upon the completion of the IPO, the performance-based vesting condition was met and the Company recognized $17.3 million of deferred expense related to RSUs as of that date in its condensed consolidated statement of operations.

Expense for RSUs that have a service-based condition only are being amortized on a straight-line basis. Expense for RSUs that have both a service-based and a performance-based condition are being amortized under the accelerated attribution method. Total unrecognized stock‑based compensation expense related to unvested RSUs was $83.2 million as of July 31, 2019. This expense is expected to be amortized (subject to acceleration or straight-line basis) over a weighted‑average vesting period of 2.2 years. Total unrecognized stock‑based compensation expense related to unvested restricted stock units was $51.9 million as of January 31, 2019. This expense is expected to be amortized on an accelerated attribution method over a weighted‑average vesting period of 2.2 years.

The following table is a summary of RSU activity for the six months ended July 31, 2019:


		Weighted-
		Average Grant
	Number of	Date Fair Value
	Shares	Per Share
	(in thousands)

RSUs outstanding at January 31, 2019	4,059	$	12.66
Granted	853	$	18.32
Vested	—	$	—
Forfeited	(159)	$	12.62
RSUs outstanding at April 30, 2019	4,753	$	13.33
Granted	1,014	$	41.35
Vested	—	$	—
Forfeited	(38)	$	20.59
RSUs outstanding at July 31, 2019	5,729	$	18.61
RSUs expected to vest at July 31, 2019	5,729	$	18.61

Employee Stock Purchase Plan

In May 2019, the board of directors adopted, and the stockholders approved the CrowdStrike Holdings, Inc. 2019 Employee Stock Purchase Plan (“ESPP”), which became effective on June 10, 2019, which was the business day prior to the effectiveness of the Company's registration statement on Form S-1 used in connection with the Company's IPO. A total of 3,500,000 shares of Class A common stock were initially reserved for issuance under the ESPP. The Company’s compensation committee administers the ESPP. The number of shares of common stock available for issuance under the ESPP is subject to an annual increase on the first day of each fiscal year beginning on February 1, 2020, equal to the lesser of: (i) one percent (1%) of outstanding shares of our capital stock as of the last day of the immediately preceding fiscal year or (ii) such other amount as our board of directors may determine.

The ESPP provides for consecutive offering periods that will typically have a duration of approximately 24 months in length and is comprised of four purchase periods of approximately six months in length. The offering periods are scheduled to start on the first trading day on or after June 11 and December 11 of each year. The first offering period commenced on June 11, 2019 and is scheduled to end on the first trading day on or before June 10, 2021.

The ESPP provides eligible employees with an opportunity to purchase shares of the Company’s Class A common stock through payroll deductions of up to 15% of their eligible compensation. A participant may purchase a maximum of 2,500 shares of common stock during a purchase period. Amounts deducted and accumulated by the participant are used to purchase shares of common stock at the end of each six-month purchase period. The purchase price of the shares shall be 85% of the lower of the fair market value of the Class A common stock on (i) the first trading day of the applicable offering period and (ii) the last trading day of each purchase period in the related offering period. Participants may end their participation at any time during an offering period and will be paid their accrued contributions that have not yet been used to purchase shares of common stock. Participation ends automatically upon termination of employment.

ESPP employee payroll contributions accrued at July 31, 2019 totaled $2.5 million and are included within accrued compensation in the condensed consolidated balance sheets. Employee payroll contributions ultimately used to purchase shares will be reclassified to stockholders' equity on the purchase date. The Company recorded stock-based compensation of $2.3 million during the three and six months ended July 31, 2019 in connection with the ESPP.

The fair value of the share purchase rights granted under the ESPP during the six months ended July 31, 2019 was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:


	Six Months Ended July 31,
	2019

Expected term (in years)	0.5 - 2.0
Risk-free interest rate	1.9 - 2.2	%
Expected stock price volatility	33.0 - 35.7	%
Dividend yield	—	%

Stock-Based Compensation Expense

Stock-based compensation expense included in the condensed consolidated statements of operations is as follows:


	Three Months Ended July 31,				Six Months Ended July 31,
	2019		2018		2019		2018
	(in thousands)				(in thousands)

Subscription cost of revenue	$	1,233	$	88	$	1,498	$	151
Professional services cost of revenue		644		57		747		103
Sales and marketing		6,638		1,031		8,156		1,804
Research and development		4,976		539		5,657		987
General and administrative		16,368		509		17,553		898
Total stock-based compensation expense	$	29,859	$	2,224	$	33,611	$	3,943

Revenue, Deferred Revenue and Remaining Performance Obligations

6 Months Ended

Jul. 31, 2019

Revenue, Deferred Revenue and Remaining Performance Obligations

Revenue, Deferred Revenue and Remaining Performance Obligations

10. Revenue, Deferred Revenue and Remaining Performance Obligations

The following table summarizes the revenue from contracts by type of customer:


	Three Months Ended July 31,								Six Months Ended July 31,
	2019				2018				2019				2018
	Amount		% Revenue		Amount		% Revenue		Amount		% Revenue		Amount		% Revenue
	(in thousands, except percentages)								(in thousands, except percentages)

Channel Partners	$	70,438	65	%	$	36,936	66	%	$	134,897	66	%	$	70,094	68	%
Direct Customers		37,670	35	%		18,765	34	%		69,288	34	%		32,896	32	%
Total revenue	$	108,108	100	%	$	55,701	100	%	$	204,185	100	%	$	102,990	100	%

The Company uses channel partners to complement direct sales and marketing efforts. The partners place an order with the Company after negotiating the order directly with an end customer. The partners negotiate pricing with the end customer and in some rare instances are responsible for certain support levels directly with the end customer. The Company’s contract is with the partner and payment to the Company is not contingent on the receipt of payment from the end customer. The Company recognizes the contractual amount charged to the partners as revenue ratably over the term of the arrangement once access to the Company’s solution has been provided to the end customer.

The Company also uses referral partners who refer customers in exchange for a referral fee. The Company negotiates pricing and contracts directly with the end customer. The Company recognizes revenue from the sales to the end customers, ratably over the term of the contract, once access to the Company’s solution has been provided to the end customer.

The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use the Company’s cloud platform:


	Three Months Ended July 31,								Six Months Ended July 31,
	2019					2018			2019					2018
	Amount		% Revenue		Amount		% Revenue		Amount		% Revenue		Amount		% Revenue
	(in thousands, except percentages)								(in thousands, except percentages)

United States	$	80,146	74	%	$	44,338	80	%	$	152,454	75	%	$	80,293	78	%
Europe, Middle East, and Africa		15,006	14	%		5,108	9	%		28,419	14	%		11,017	11	%
Asia Pacific		8,613	8	%		4,000	7	%		14,843	7	%		7,662	7	%
Other		4,343	4	%		2,255	4	%		8,469	4	%		4,018	4	%
Total revenue	$	108,108	100	%	$	55,701	100	%	$	204,185	100	%	$	102,990	100	%

No single country other than the United States represented 10% or more of the Company’s total revenue during the three or six months ended July 31, 2019 or July 31, 2018.

Contract Balances

Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract. Such amounts are recognized as revenue over the contractual period. For the three months and six months ended July 31, 2019, the Company recognized revenue of $89.6 million and $169.5 million, respectively, that were included in the corresponding contract liability balance at the beginning of the period.

The Company receives payments from customers based upon contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Payment terms on invoiced amounts are typically 30-60 days. Contract assets include amounts related to the contractual right to consideration for both completed and partially completed performance obligations that may not have been invoiced.

Changes in deferred revenue for the six months ended July 31, 2019 were as follows (in thousands):


	Carrying Amount
	Three Months Ended July 31, 2019		Six Months Ended July 31, 2019
Beginning Balance	$	315,212	$	290,067
Additions to deferred revenue		162,658		283,880
Recognition of deferred revenue		(108,108)		(204,185)
Ending Balance	$	369,762	$	369,762

Remaining Performance Obligations

The Company's subscription contracts with its customers have a typical term of one to three years and most subscription contracts are non-cancelable. Customers typically have the right to terminate their contracts for cause as a result of the Company’s failure to perform. As of July 31, 2019, the aggregate amount of the transaction price allocated to remaining performance obligations was $455.0 million. The Company expects to recognize 72% of the remaining performance obligation in the 12 months following July 31, 2019, with the remainder to be recognized thereafter.

Costs to Obtain and Fulfill a Contract

The Company capitalizes sales commission and associated payroll taxes paid to internal sales personnel that are incremental to the acquisition of channel partner and direct customer contracts and would not have occurred absent the customer contract. These costs are recorded as deferred contract acquisition costs on the condensed consolidated balance sheet.

Sales commissions for renewal of a contract are not considered commensurate with the commissions paid for the acquisition of the initial contract or follow-on upsell given the substantive difference in commission rates in proportion to their respective contract values. Commissions, including referral fees paid to channel partners, paid upon

the initial acquisition of a contract or subsequent upsell are amortized over an estimated period of benefit of four years while commissions paid for renewal contracts are amortized over the contractual term of the renewals. Sales commissions associated with professional service contracts are amortized ratably over an estimated period of benefit of six months. Amortization of deferred contract acquisition costs is recognized on a straight-line basis commensurate with the pattern of revenue recognition and included in sales and marketing expense in the condensed consolidated statements of operations. In determining the period of benefit for commissions paid for the acquisition of the initial contract, the Company took into consideration the expected subscription term and expected renewals of customer contracts, the historical duration of relationships with customers, customer retention data, and the life of the developed technology. 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 losses of deferred contract acquisition costs during the three and six months ended July 31, 2019.

The following table summarizes the activity of deferred contract acquisition costs:


	Three Months Ended July 31,				Six Months Ended July 31,
	2019		2018		2019		2018
	(in thousands)

Beginning balance	$	64,197	$	21,764	$	63,071	$	22,334
Capitalization of contract acquisition costs		19,317		9,272		27,788		14,298
Amortization of deferred contract acquisition costs		(7,731)		(6,395)		(15,076)		(11,991)
Ending balance	$	75,783	$	24,641	$	75,783	$	24,641

Deferred contract acquisition costs, current	$	34,017	$	18,808	$	34,017	$	18,808
Deferred contract acquisition costs, noncurrent		41,766		5,833		41,766		5,833
Total deferred contract acquisition costs	$	75,783	$	24,641	$	75,783	$	24,641

Commitments and Contingencies

6 Months Ended

Jul. 31, 2019

Commitments and Contingencies

Commitments and Contingencies

11. Commitments and Contingencies

Lease Commitments

The Company leases its office space under various non-cancelable operating lease agreements. Leases expire at various dates through fiscal year 2027. The aggregate future minimum payments under noncancelable operating leases as of July 31, 2019 were as follows:


	Operating
	Leases
	(in thousands)

Fiscal 2020 (remaining six months)	$	3,204
Fiscal 2021		5,877
Fiscal 2022		5,600
Fiscal 2023		4,753
Fiscal 2024		3,498
Thereafter		2,058
Total minimum lease payments	$	24,990

Rent expense was $2.2 million and $1.7 million during the three months ended July 31, 2019 and July 31, 2018, respectively, and $4.0 million and $3.2 million during the six months ended July 31, 2019 and July 31, 2018, respectively.

Purchase Obligations

The Company enters into long-term non-cancelable agreements with providers to purchase data center capacity, such as bandwidth and colocation space, for the Company’s cloud platform. As of July 31, 2019, the Company is committed to spend $205.3 million on such agreements through 2027. These obligations are included in purchase obligations below.

In the normal course of business, the Company enters into non-cancelable purchase commitments with various parties to purchase products and services such as technology, equipment, office renovations, corporate events, and consulting services. A summary of noncancelable purchase obligations as of July 31, 2019 with expected date of payment is as follows:


	Total
	Commitments
	(in thousands)
Fiscal 2020 (remaining six months)	$	24,198
Fiscal 2021		63,714
Fiscal 2022		87,294
Fiscal 2023		32,483
Fiscal 2024		9,724
Thereafter		4,367
Total purchase commitments	$	221,780

Letters of Credit

As of July 31, 2019 and January 31, 2019, the Company had an unused standby letter of credit for $0.5 million securing its headquarters facility in Sunnyvale, California. As of July 31, 2019 and January 31, 2019, the Company had an unused standby letter of credit for $1.0 million and $0.8 million, respectively, securing its facility in Austin, Texas.

Litigation

The Company is currently involved in proceedings before the Trademark Trial and Appeal Board at the U.S. Patent and Trademark Office (the “USPTO”) regarding its U.S. trademark registrations for “CrowdStrike Falcon” and its U.S. application to register its “Falcon OverWatch” trademark. On November 23, 2016, Fair Isaac Corporation (“FICO”) filed a Petition for Cancellation of the Company’s “CrowdStrike Falcon” trademark registrations and a Notice of Opposition against the Company’s “Falcon OverWatch” trademark application before the USPTO, Trademark Trial and Appeal Board (“TTAB”). On January 3, 2017, the Company filed answers to both the cancellation and opposition proceedings, and the proceedings thereafter were consolidated. On November 21, 2018, the Company filed a Petition for Partial Cancellation or Amendment of one of FICO’s “Falcon” trademark registrations, and on December 10, 2018, the parties filed a joint request to consolidate the proceedings and adjust the schedule. On January 16, 2019, FICO moved to dismiss the Company’s petition, and the TTAB thereafter suspended all proceedings pending its ruling on the motions. On July 2, 2019, the TTAB issued an order granting the request to consolidate the proceedings and granting the motion to dismiss with leave to file an amended petition by July 22, 2019. The order also set a schedule with trial proceedings to close no earlier than 2021. The Company filed its Amended Petition for Cancellation or Amendment on July 22, 2019. On August 12, 2019, FICO moved to dismiss the Company’s Amended Petition for Cancellation. The Company is vigorously defending the case, but given the early stage, although a loss may reasonably be possible, the Company is unable to predict the likelihood of success of Fair Isaac’s claims or estimate a loss or range of loss. As a result, no liability has been recorded as of July 31, 2019 or January 31, 2019.

In addition, from time to time the Company is a party to various litigation matters and subject to claims that arise in the ordinary course of business. In addition, third parties may from time to time assert claims against the Company in the form of letters and other communications. For any claims for which the Company believes a liability is both probable and reasonably estimable, the Company records a liability in the period for which it makes this determination. There is no pending or threatened legal proceeding to which the Company is a party that, in the

Company’s opinion, is likely to have a material adverse effect on its condensed consolidated financial statements; however, the results of litigation and claims are inherently unpredictable. Regardless of the outcome, litigation can have an adverse impact on the Company’s business because of defense and settlement costs, diversion of management resources, and other factors. In addition, the expense of litigation and the timing of this expense from period to period are difficult to estimate, subject to change and could adversely affect the Company’s results of operations.

Warranties and Indemnification

The Company’s cloud computing services are typically warranted to perform in a manner consistent with general industry standards that are reasonably applicable and materially in accordance with the Company’s online help documentation under normal use and circumstances.

The Company’s arrangements generally include certain provisions for indemnifying customers against liabilities if its products or services infringe a third party’s intellectual property rights. In addition, for its Falcon Complete module customers, the Company offers a limited warranty, subject to certain conditions, to cover certain costs incurred by the customer in case of a cybersecurity breach. The Company has entered into an insurance policy to cover its potential liability arising from this limited warranty arrangement. To date, the Company has not incurred any material costs because of such obligations and has not accrued any liabilities related to such obligations in the condensed consolidated financial statements.

The Company has also agreed to indemnify its directors and executive officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by the Company, arising out of that person’s services as the Company’s director or officer or that person’s services provided to any other company or enterprise at the Company’s request. The Company maintains director and officer insurance coverage that would generally enable the Company to recover a portion of any future amounts paid. The Company may also be subject to indemnification obligations by law with respect to the actions of its employees under certain circumstances and in certain jurisdictions. No liabilities have been accrued associated with this indemnification provision as of July 31, 2019 or January 31, 2019.

Geographic Information

6 Months Ended

Jul. 31, 2019

Geographic Information

Geographic Information

12. Geographic Information

The Company’s long-lived assets are composed of property and equipment, net, and are summarized by geographic area as follows:


	July 31,		January 31,
	2019		2019
	(in thousands)

United States	$	99,624	$	70,699
International		8,365		3,036
Total property and equipment, net	$	107,989	$	73,735

Other than the United States, no other country represented 10% or more of our total property and equipment as of July 31, 2019 or January 31, 2019.

Related Party Transactions

6 Months Ended

Jul. 31, 2019

Related Party Transactions

Related Party Transactions

13. Related Party Transactions

Subscription and Professional Services Revenue from Related Parties

During the three months and six months ended July 31, 2019 and 2018, certain investors and companies with whom the Company’s Board of Directors are affiliated purchased subscriptions and professional services. The Company recorded revenue from subscriptions and professional services from related parties of $2.3 million and $1.3 million during the three months ended July 31, 2019 and July 31, 2018, respectively, and $4.6 million and $2.7 million during

the six months ended July 31, 2019 and July 31, 2018. Accounts receivable associated with these related parties was $0.1 million and $0.2 million as of July 31, 2019 and January 31, 2019, respectively.

Accounts Payable to Related Parties

The Company purchased goods and services totaling $0.9 million and $0.4 million, respectively, from certain investors and companies with whom its Board of Directors are affiliated during the three months ended July 31, 2019 and 2018, and $1.5 million and $0.8 million during the six months ended July 31, 2019 and July 31, 2018. There is no accounts payable to such vendors as of July 31, 2019. The accounts payable was less than $0.1 million as of January 31, 2019.

Net Loss Per Share Attributable to Common Stockholders

6 Months Ended

Jul. 31, 2019

Net Loss Per Share Attributable to Common Stockholders

Net Loss Per Share Attributable to Common Stockholders

14. Net Loss Per Share Attributable to Common Stockholders

The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders:


	Three Months Ended July 31,				Six Months Ended July 31,
	2019		2018		2019		2018

Common Stock

Net loss attributable to common stockholders	$	—	$	(32,877)	$	—	$	(66,494)

Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted		—		44,105		—		43,864

Net loss per share attributable to common stockholders, basic and diluted	$	—	$	(0.75)	$	—	$	(1.52)

Class A Common Stock

Net loss attributable to common stockholders	$	(4,308)	$	—	$	(4,784)	$	—

Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted		10,800		—		5,489		—

Net loss per share attributable to common stockholders, basic and diluted	$	(0.40)	$	—	$	(0.87)	$	—

Class B Common Stock

Net loss attributable to common stockholders	$	(47,581)	$	—	$	(73,082)	$	—

Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted		119,291		—		83,846		—

Net loss per share attributable to common stockholders, basic and diluted	$	(0.40)	$	—	$	(0.87)	$	—

Since the Company was in a net loss position for all periods presented, basic net loss per share is the same as diluted net loss per share as the inclusion of all potential common shares outstanding would have been antidilutive. The potential shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive are as follows:


	July 31,	July 31,
	2019	2018
	(in thousands)

Shares of common stock issuable upon conversion of redeemable convertible preferred stock	—	130,843
Shares of common stock issuable upon conversion of redeemable convertible preferred stock warrants	—	336
Shares of common stock subject to repurchase from outstanding stock options	1,316	778
Restricted stock units subject to future vesting	5,729	31
Shares of common stock issuable from stock options	21,267	24,141
Potential common shares excluded from diluted net loss per share	28,312	156,129

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jul. 31, 2019

Summary of Significant Accounting Policies

Basis of Presentation

Principles of Consolidation

JOBS Act Accounting Election

Use of Estimates

Concentration of Credit Risk and Geographic Information

There were no direct customers who represented 10% or more of the Company’s total revenue during the three and six months ended July 31, 2019 and July 31, 2018.

Fair Value of Financial Instruments

Accounts Receivable and Allowance for Doubtful Accounts

Deferred Offering Costs

Property and Equipment, Net


Data center and other computer equipment		3 - 5 years
Furniture and equipment		5 years
Purchased software		3 - 5 years
Capitalized internal-use software		3 years
Leasehold improvements		Estimated useful life or term of the lease, whichever is shorter

Capitalized Internal Use Software

Capitalized Internal-Use Software

Intangible Assets, Net

Deferred Contract Acquisition Costs

Impairment of Long Lived Assets

Impairment of Long-Lived Assets

Deferred Revenue

Redeemable Convertible Preferred Stock Warrants

Revenue Recognition - ASC 606

Revenue Recognition – ASC 606


	July 31, 2019
	As Reported		Impact of		Without Adoption
	(ASC 606)		Adoption		(ASC 605)
	(in thousands)
Condensed Consolidated Balance Sheet

Assets:
Deferred contract acquisition costs, current	$	34,017	$	381	$	34,398
Deferred contract acquisition costs, noncurrent		41,766		(33,523)		8,243

Liabilities:
Accrued expenses		32,568		(555)		32,013
Deferred revenue, current		279,951		(168)		279,783
Deferred revenue, noncurrent		89,811		—		89,811

Stockholders' Equity:
Accumulated deficit		(573,574)		(32,419)		(605,993)


	Three Months Ended July 31, 2019
	As Reported		Impact of		Without Adoption
	(ASC 606)		Adoption		(ASC 605)
	(in thousands)
Condensed Consolidated Statement of Operations

Revenue	$	108,108	$	(83)	$	108,025
Operating expenses:
Sales and marketing		65,274		4,621		69,895

Net loss		(51,889)		(4,703)		(56,592)

Net loss per share, basic and diluted	$	(0.40)			$	(0.44)


	Six Months Ended July 31, 2019
	As Reported		Impact of		Without Adoption
	(ASC 606)		Adoption		(ASC 605)
	(in thousands)
Condensed Consolidated Statement of Operations

Revenue	$	204,185	$	(165)	$	204,020
Operating expenses:
Sales and marketing		122,117		8,837		130,954

Net loss		(77,866)		(9,002)		(86,868)

Net loss per share, basic and diluted	$	(0.87)			$	(0.97)

Identify the contract with a customer

Identify the performance obligations in the contract

Determine the transaction price

Allocate the transaction price to performance obligations in the contract

Recognize revenue when or as performance obligations are satisfied

Subscription Revenue

Professional Services Revenue

Contracts with Multiple Performance Obligations

Variable Consideration

Revenue Recognition - ASC 605

Revenue Recognition – ASC 605

customer and transaction history. If collectability was not reasonably assured, revenue was deferred until the fees were collected.

Research and Development Expense

Advertising

Business Combinations

Goodwill and Intangible Assets

remaining useful lives of long-lived assets to determine whether events or changes in circumstances warrant a revision to the remaining period of depreciation or amortization.

Leases

Foreign Currency Translation

Income Taxes

Sales Taxes

Segment and Geographic Information

Net Loss per Share

Recently Issued and Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Recently Issued Accounting Pronouncements

this ASU until February 1, 2022. The Company is currently evaluating the potential impact of this ASU on its condensed consolidated financial statements.

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jul. 31, 2019

Summary of Significant Accounting Policies

Summary of estimated useful lives of the assets


Data center and other computer equipment		3 - 5 years
Furniture and equipment		5 years
Purchased software		3 - 5 years
Capitalized internal-use software		3 years
Leasehold improvements		Estimated useful life or term of the lease, whichever is shorter

Summary of the effect of the adoption of Topic 606 on the Company's select line items included in the condensed consolidated financial statements


	July 31, 2019
	As Reported		Impact of		Without Adoption
	(ASC 606)		Adoption		(ASC 605)
	(in thousands)
Condensed Consolidated Balance Sheet

Assets:
Deferred contract acquisition costs, current	$	34,017	$	381	$	34,398
Deferred contract acquisition costs, noncurrent		41,766		(33,523)		8,243

Liabilities:
Accrued expenses		32,568		(555)		32,013
Deferred revenue, current		279,951		(168)		279,783
Deferred revenue, noncurrent		89,811		—		89,811

Stockholders' Equity:
Accumulated deficit		(573,574)		(32,419)		(605,993)


	Three Months Ended July 31, 2019
	As Reported		Impact of		Without Adoption
	(ASC 606)		Adoption		(ASC 605)
	(in thousands)
Condensed Consolidated Statement of Operations

Revenue	$	108,108	$	(83)	$	108,025
Operating expenses:
Sales and marketing		65,274		4,621		69,895

Net loss		(51,889)		(4,703)		(56,592)

Net loss per share, basic and diluted	$	(0.40)			$	(0.44)

Fair Value Measurements and Marketable Securities (Tables)

6 Months Ended

Jul. 31, 2019

Fair Value Measurements and Marketable Securities

Schedule of Company's fair value hierarchy for its financial assets and liabilities that are measured at fair value on a recurring basis


	July 31, 2019								January 31, 2019
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	(in thousands)								(in thousands)
Assets
Cash equivalents⁽¹⁾
Money market funds	$	698,945	$	—	$	—	$	698,945	$	42,132	$	—	$	—	$	42,132
Corporate debt securities		—		15,008		—		15,008		—		27,941		—		27,941
Total cash equivalents		698,945		15,008		—		713,953		42,132		27,941		—		70,073
Marketable securities
Corporate debt securities		—		79,985		—		79,985		—		91,796		—		91,796
U.S. treasury securities		14,018		—		—		14,018		11,451		—		—		11,451
Total marketable securities		14,018		79,985		—		94,003		11,451		91,796		—		103,247
Total assets	$	712,963	$	94,993	$	—	$	807,956	$	53,583	$	119,737	$	—	$	173,320
Liability
Contingent consideration related to business combinations⁽²⁾		—		—		—		—		—		—	$	474	$	474
Redeemable convertible preferred stock warrant liability ⁽³⁾		—		—		—		—		—		—		4,537		4,537
Total liabilities	$	—	$	—	$	—	$	—	$	—	$	—	$	5,011	$	5,011

(1)	Included in “Cash and cash equivalents” on the condensed consolidated balance sheets.

(2)

(3)

Summary of changes in the redeemable convertible preferred stock warrant liability


	Three Months Ended July 31,				Six Months Ended July 31,
	2019		2018		2019		2018
	(in thousands)				(in thousands)

Balance at beginning of period	$	5,704	$	961	$	4,537	$	961
Adjustment resulting from change in fair value recognized in the condensed consolidated statements of operations		4,855		2,055		6,022		2,055
Reclassification of liability for redeemable convertible preferred stock warrants to additional paid-in capital upon initial public offering		(10,559)		—		(10,559)		—
Balance at end of period	$	—	$	3,016	$	—	$	3,016

Balance Sheet Components (Tables)

6 Months Ended

Jul. 31, 2019

Balance Sheet Components

Summary of prepaid expenses and other current assets


	July 31,		January 31,
	2019		2019
	(in thousands)

Prepaid expenses	$	22,671	$	14,390
Prepaid hosting services		4,280		2,915
Other current assets		2,397		1,105
Prepaid expenses and other current assets	$	29,348	$	18,410

Summary of property and equipment, net


	July 31,		January 31,
	2019		2019
	(in thousands)

Data center and other computer equipment	$	55,980	$	44,735
Capitalized internal-use software		25,764		22,209
Leasehold improvements		9,916		10,011
Purchased software		1,757		1,460
Furniture and equipment		3,417		2,553
Construction in process		47,991		19,455
		144,825		100,423
Less: Accumulated depreciation and amortization		(36,836)		(26,688)
Property and equipment, net	$	107,989	$	73,735

Schedule of total intangible assets, net


					Weighted-Average
	July 31,		January 31,		Remaining Useful
	2019		2019		Life
	(in thousands)				(in months)

Developed technology	$	1,246	$	1,269	15
Customer relationships		613		632	39
Non-compete agreement		123		126	15
		1,982		2,027
Less: Accumulated amortization		(1,244)		(979)
Intangible assets, net	$	738	$	1,048

Schedule of estimated aggregate future amortization expense of intangible assets


	Total
	(in thousands)

Fiscal 2020 (remaining six months)	$	206
Fiscal 2021		324
Fiscal 2022		123
Fiscal 2023		85
Fiscal 2024		—
Total amortization expense	$	738

Summary of accrued expenses


	July 31,		January 31,
	2019		2019
	(in thousands)

Web hosting services	$	7,478	$	12,224
Accrued purchases of property and equipment		10,701		7,042
Other vendor expenses		12,707		12,326
Amounts due for employee expenses		1,682		949
Accrued expenses	$	32,568	$	32,541

Summary of accrued payroll and benefits


	July 31,		January 31,
	2019		2019
	(in thousands)

Accrued payroll and related expenses	$	5,686	$	4,326
Accrued bonuses		5,433		5,459
Accrued commissions		8,938		9,499
Accrued payroll and benefits	$	20,057	$	19,284

Stock-Based Compensation (Tables)

6 Months Ended

Jul. 31, 2019

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of stock option activity


		Weighted-
		Average
	Number of	Exercise Price
	Shares	Per Share
	(in thousands)

Options outstanding at January 31, 2019	26,535	$	3.87
Granted	880	$	14.65
Exercised	(706)	$	2.14
Canceled	(509)	$	7.34
Options outstanding as of April 30, 2019	26,200	$	4.21
Granted	168	$	34.00
Exercised	(4,776)	$	3.62
Canceled	(325)	$	5.06
Options outstanding at July 31, 2019	21,267	$	4.56
Options vested and expected to vest at July 31, 2019	21,267	$	4.56
Options exercisable at July 31, 2019	10,810	$	1.97

Schedule of restricted stock units


		Weighted-
		Average Grant
	Number of	Date Fair Value
	Shares	Per Share
	(in thousands)

RSUs outstanding at January 31, 2019	4,059	$	12.66
Granted	853	$	18.32
Vested	—	$	—
Forfeited	(159)	$	12.62
RSUs outstanding at April 30, 2019	4,753	$	13.33
Granted	1,014	$	41.35
Vested	—	$	—
Forfeited	(38)	$	20.59
RSUs outstanding at July 31, 2019	5,729	$	18.61
RSUs expected to vest at July 31, 2019	5,729	$	18.61

Schedule of stock-based compensation expense


	Three Months Ended July 31,				Six Months Ended July 31,
	2019		2018		2019		2018
	(in thousands)				(in thousands)

Subscription cost of revenue	$	1,233	$	88	$	1,498	$	151
Professional services cost of revenue		644		57		747		103
Sales and marketing		6,638		1,031		8,156		1,804
Research and development		4,976		539		5,657		987
General and administrative		16,368		509		17,553		898
Total stock-based compensation expense	$	29,859	$	2,224	$	33,611	$	3,943

Employee Stock Purchase Plan

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of assumptions used to estimate fair value on date of grant


	Six Months Ended July 31,
	2019

Expected term (in years)	0.5 - 2.0
Risk-free interest rate	1.9 - 2.2	%
Expected stock price volatility	33.0 - 35.7	%
Dividend yield	—	%

Stock options

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of assumptions used to estimate fair value on date of grant


	Six Months Ended July 31,
	2019		2018

Expected term (in years)	6.05		6.05
Risk-free interest rate	2.0	%	2.9	%
Expected stock price volatility	37.7	%	38.1	%
Dividend yield	—	%	—	%

Revenue, Deferred Revenue and Remaining Performance Obligations (Tables)

6 Months Ended

Jul. 31, 2019

Revenue, Deferred Revenue and Remaining Performance Obligations

Summary of revenue from contracts by type of customer


	Three Months Ended July 31,								Six Months Ended July 31,
	2019				2018				2019				2018
	Amount		% Revenue		Amount		% Revenue		Amount		% Revenue		Amount		% Revenue
	(in thousands, except percentages)								(in thousands, except percentages)

Channel Partners	$	70,438	65	%	$	36,936	66	%	$	134,897	66	%	$	70,094	68	%
Direct Customers		37,670	35	%		18,765	34	%		69,288	34	%		32,896	32	%
Total revenue	$	108,108	100	%	$	55,701	100	%	$	204,185	100	%	$	102,990	100	%

Summary of revenue by region based on the shipping address of customers


	Three Months Ended July 31,								Six Months Ended July 31,
	2019					2018			2019					2018
	Amount		% Revenue		Amount		% Revenue		Amount		% Revenue		Amount		% Revenue
	(in thousands, except percentages)								(in thousands, except percentages)

United States	$	80,146	74	%	$	44,338	80	%	$	152,454	75	%	$	80,293	78	%
Europe, Middle East, and Africa		15,006	14	%		5,108	9	%		28,419	14	%		11,017	11	%
Asia Pacific		8,613	8	%		4,000	7	%		14,843	7	%		7,662	7	%
Other		4,343	4	%		2,255	4	%		8,469	4	%		4,018	4	%
Total revenue	$	108,108	100	%	$	55,701	100	%	$	204,185	100	%	$	102,990	100	%

Summary of changes in deferred revenue

Changes in deferred revenue for the six months ended July 31, 2019 were as follows (in thousands):


	Carrying Amount
	Three Months Ended July 31, 2019		Six Months Ended July 31, 2019
Beginning Balance	$	315,212	$	290,067
Additions to deferred revenue		162,658		283,880
Recognition of deferred revenue		(108,108)		(204,185)
Ending Balance	$	369,762	$	369,762

Summary of the activity of deferred contract acquisition costs


	Three Months Ended July 31,				Six Months Ended July 31,
	2019		2018		2019		2018
	(in thousands)

Beginning balance	$	64,197	$	21,764	$	63,071	$	22,334
Capitalization of contract acquisition costs		19,317		9,272		27,788		14,298
Amortization of deferred contract acquisition costs		(7,731)		(6,395)		(15,076)		(11,991)
Ending balance	$	75,783	$	24,641	$	75,783	$	24,641

Deferred contract acquisition costs, current	$	34,017	$	18,808	$	34,017	$	18,808
Deferred contract acquisition costs, noncurrent		41,766		5,833		41,766		5,833
Total deferred contract acquisition costs	$	75,783	$	24,641	$	75,783	$	24,641

Commitments and Contingencies (Tables)

6 Months Ended

Jul. 31, 2019

Commitments and Contingencies

Summary of future minimum payments under noncancelable operating leases


	Operating
	Leases
	(in thousands)

Fiscal 2020 (remaining six months)	$	3,204
Fiscal 2021		5,877
Fiscal 2022		5,600
Fiscal 2023		4,753
Fiscal 2024		3,498
Thereafter		2,058
Total minimum lease payments	$	24,990

Summary of noncancelable purchase obligations


	Total
	Commitments
	(in thousands)
Fiscal 2020 (remaining six months)	$	24,198
Fiscal 2021		63,714
Fiscal 2022		87,294
Fiscal 2023		32,483
Fiscal 2024		9,724
Thereafter		4,367
Total purchase commitments	$	221,780

Geographic Information (Tables)

6 Months Ended

Jul. 31, 2019

Geographic Information

Summary by geographic area of company's long lived assets


	July 31,		January 31,
	2019		2019
	(in thousands)

United States	$	99,624	$	70,699
International		8,365		3,036
Total property and equipment, net	$	107,989	$	73,735

Net Loss Per Share Attributable to Common Stockholders (Tables)

6 Months Ended

Jul. 31, 2019

Net Loss Per Share Attributable to Common Stockholders

Schedule of computation of basic and diluted net loss per share attributable to common stockholders"


	Three Months Ended July 31,				Six Months Ended July 31,
	2019		2018		2019		2018

Common Stock

Net loss attributable to common stockholders	$	—	$	(32,877)	$	—	$	(66,494)

Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted		—		44,105		—		43,864

Net loss per share attributable to common stockholders, basic and diluted	$	—	$	(0.75)	$	—	$	(1.52)

Class A Common Stock

Net loss attributable to common stockholders	$	(4,308)	$	—	$	(4,784)	$	—

Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted		10,800		—		5,489		—

Net loss per share attributable to common stockholders, basic and diluted	$	(0.40)	$	—	$	(0.87)	$	—

Class B Common Stock

Net loss attributable to common stockholders	$	(47,581)	$	—	$	(73,082)	$	—

Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted		119,291		—		83,846		—

Net loss per share attributable to common stockholders, basic and diluted	$	(0.40)	$	—	$	(0.87)	$	—

Summary of potential shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders"


	July 31,	July 31,
	2019	2018
	(in thousands)

Shares of common stock issuable upon conversion of redeemable convertible preferred stock	—	130,843
Shares of common stock issuable upon conversion of redeemable convertible preferred stock warrants	—	336
Shares of common stock subject to repurchase from outstanding stock options	1,316	778
Restricted stock units subject to future vesting	5,729	31
Shares of common stock issuable from stock options	21,267	24,141
Potential common shares excluded from diluted net loss per share	28,312	156,129

Description of Business and Basis of Presentation (Details) $ / shares in Units, $ in Thousands			6 Months Ended
	Jun. 14, 2019 USD ($) $ / shares shares	Jun. 13, 2019 shares	Jul. 31, 2019 USD ($)	Jan. 31, 2019 USD ($)
Description of Business and Basis of Presentation
Accumulated deficit			$ 573,574	$ 519,126
Net proceeds from issuance of common stock from IPO after deducting underwriters' discounts and commissions and estimated offering expenses			$ 665,092
Class A common stock \| IPO
Description of Business and Basis of Presentation
Number of shares issued \| shares	20,700,000
Public offering price \| $ / shares	$ 34.00
Net proceeds from issuance of common stock from IPO after deducting underwriters' discounts and commissions and estimated offering expenses	$ 659,200
Underwriters' discounts and commissions and estimated offering expenses	$ 44,800
Stock Conversion, Common Stock Conversion Ratio	1
Class B common stock \| IPO
Description of Business and Basis of Presentation
Number of shares issued in conversion of common stock \| shares		131,267,586
Stock Conversion, Preferred Stock Conversion Ratio		1
Stock Conversion, Common Stock Conversion Ratio	1
Conversion Of Warrants, Warrants Issued \| shares	336,386
Stock Conversion, Warrants Conversion Ratio	1

Summary of Significant Accounting Policies - Concentration of Credit Risk and Geographic Information (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Jul. 31, 2019 Distributor	Jul. 31, 2018 Distributor	Jul. 31, 2019 Distributor	Jul. 31, 2018 Distributor	Jan. 31, 2019 customer
Channel partners \| Revenue
Concentration Risk [Line Items]
Number of distributors \| Distributor	1	1	1	1
Concentration risk, percentage	11.00%	15.00%	11.00%	16.00%
Customers \| Accounts receivable
Concentration Risk [Line Items]
Number of customers \| customer					2
Customers \| Accounts receivable \| Customer 1
Concentration Risk [Line Items]
Concentration risk, percentage			10.00%
Customers \| Accounts receivable \| Customer 2
Concentration Risk [Line Items]
Concentration risk, percentage			19.00%

Summary of Significant Accounting Policies - Strategic Investments (Details) $ in Millions	1 Months Ended
	Jul. 31, 2019 USD ($)
Accel \| Minimum
Strategic Investments
Percentage of capital stock held	5.00%
FalconFund
Strategic Investments
Sharing percentage of distributions by the fund	50.00%
Duration of fund	10 years
Extendable term of fund	3 years
FalconFund \| Maximum
Strategic Investments
Amount agreed to commit	$ 10.0
FalconFund \| Accel
Strategic Investments
Sharing percentage of distributions by the fund	50.00%
FalconFund \| Accel \| Maximum
Strategic Investments
Amount agreed to commit	$ 10.0

Summary of Significant Accounting Policies - Accounts Receivable and Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 31, 2019	Jan. 31, 2019	Jun. 13, 2018
Accounts Receivable and Allowance for Doubtful Accounts
Allowance for doubtful accounts		$ 1,000
Deferred Offering Costs
Deferred offering costs		$ 2,900	$ 3,000
Payments of deferred offering costs	$ 4,080

Summary of Significant Accounting Policies - Property and Equipment, Net (Details) - USD ($)	3 Months Ended			6 Months Ended
	Jul. 31, 2019	Apr. 30, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018	Jan. 31, 2019
Capitalized Internal Use Software
Impairments of internal use software	$ 0		$ 0
Capitalized amount of internal use software	1,500,000			$ 3,500,000	$ 3,200,000
Amortization expense associated with internal use software	1,600,000		1,200,000	3,000,000.0	2,300,000
Net book value of capitalized internal use software	12,000,000.0			12,000,000.0		$ 11,500,000
Deferred Contract Acquisition Costs
Contract acquisition cost amortization expense	7,700,000		6,400,000	$ 15,100,000	12,000,000.0
Amortization over an estimated period of benefit for commissions, including referral fees paid to channel partner				4 years
Amortization over an estimated period of benefit for sales commissions associated with professional service contract				6 months
Capitalization of contract acquisition costs	19,317,000	$ 19,300,000	9,272,000	$ 27,788,000	14,298,000
Impairment of Long Lived Assets
Impairment losses of long lived assets	$ 0		$ 0	$ 0	$ 0
Minimum
Intangible Assets, Net
Estimated economic lives				3 years
Maximum
Intangible Assets, Net
Estimated economic lives				5 years
Data center and other computer equipment \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives				3 years
Data center and other computer equipment \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives				5 years
Furniture and equipment
Property, Plant and Equipment [Line Items]
Estimated useful lives				5 years
Purchased software \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives				3 years
Purchased software \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives				5 years
Capitalized internal-use software
Property, Plant and Equipment [Line Items]
Estimated useful lives				3 years

Summary of Significant Accounting Policies - Redeemable Convertible Preferred Stock Warrants (Details)	Jun. 14, 2019 shares
Redeemable Convertible Preferred Stock Warrants
Number of warrants converted	336,386
Basis of conversion to purchase common stock	1
Shares issued upon conversion of warrants	336,386
Class B common stock
Redeemable Convertible Preferred Stock Warrants
Shares issued	322,278

Summary of Significant Accounting Policies - Revenue Recognition - ASC 606 (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
	Feb. 01, 2019	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018	Jan. 31, 2019
Assets:
Deferred contract acquisition costs, current		$ 34,017	$ 18,808	$ 34,017	$ 18,808	$ 28,847
Deferred contract acquisition costs, noncurrent		41,766	5,833	41,766	5,833	9,918
Liabilities
Accrued expenses		32,568		32,568		32,541
Deferred revenue, current		279,951		279,951		218,700
Deferred revenue, noncurrent		89,811		89,811		71,367
Stockholders' Equity:
Accumulated deficit		(573,574)		(573,574)		$ (519,126)
Condensed Consolidated Statement of Operations
Total revenue		108,108	55,701	204,185	102,990
Operating expenses
Sales and marketing		65,274	40,113	122,117	76,730
Net loss		$ (51,889)	$ (32,877)	$ (77,866)	$ (66,494)
Net loss per share, basic and diluted		$ (0.40)	$ (0.75)	$ (0.87)	$ (1.52)
Weighted average common shares outstanding, basic and diluted		130,091	44,105	89,335	43,864
ASC 2014-09
Revenue Recognition - ASC 606
Cumulative effect adjustment to opening accumulated deficit, net of tax	$ 23,400
Reduction in the amortization of deferred contract acquisition costs	23,700
Reduction in revenue	300
ASC 2014-09 \| Impact of adoption
Assets:
Deferred contract acquisition costs, current	6,400	$ 381		$ 381
Deferred contract acquisition costs, noncurrent	$ 30,100	(33,523)		(33,523)
Liabilities
Accrued expenses		(555)		(555)
Deferred revenue, current		(168)		(168)
Stockholders' Equity:
Accumulated deficit		(32,419)		(32,419)
Condensed Consolidated Statement of Operations
Total revenue		(83)		(165)
Operating expenses
Sales and marketing		4,621		8,837
Net loss		(4,703)		(9,002)
ASC 2014-09 \| Without adoption (ASC 605)
Assets:
Deferred contract acquisition costs, current		34,398		34,398
Deferred contract acquisition costs, noncurrent		8,243		8,243
Liabilities
Accrued expenses		32,013		32,013
Deferred revenue, current		279,783		279,783
Deferred revenue, noncurrent		89,811		89,811
Stockholders' Equity:
Accumulated deficit		(605,993)		(605,993)
Condensed Consolidated Statement of Operations
Total revenue		108,025		204,020
Operating expenses
Sales and marketing		69,895		130,954
Net loss		$ (56,592)		$ (86,868)
Net loss per share, basic and diluted		$ (0.44)		$ (0.97)

Summary of Significant Accounting Policies - Stock-Based Compensation (Details)	1 Months Ended	3 Months Ended		6 Months Ended
	Sep. 30, 2018 tranche installment	Jul. 31, 2019 USD ($)	Jul. 31, 2018 USD ($)	Jul. 31, 2019 USD ($) tranche segment item installment	Jul. 31, 2018 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Subscription fees payable term (in days)				60 days
Advertising
Advertising costs		$ 2,200,000	$ 600,000	$ 3,300,000	$ 1,100,000
Stock Based Compensation
Vesting period				4 years
Total stock-based compensation expense		29,859,000	2,224,000	$ 33,611,000	3,943,000
Number of reporting units \| item				1
Goodwill impairment		0	0	$ 0	0
Income Taxes
Income tax expense		635,000	362,000	$ 1,230,000	483,000
Segment and Geographic Information
Number of operating segments				1
Number of reportable segments \| segment				1
Minimum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Subscription fees payable term (in days)				30 days
Adjustment
Income Taxes
Income tax expense		0	$ 0	$ 0	$ 0
Service-based vesting
Stock Based Compensation
Number of vesting schedules \| tranche	3			3
Performance-based vesting
Stock Based Compensation
Stock-based compensation expense deferred		$ 17,300,000		$ 17,300,000
Vesting two \| Service-based vesting
Stock Based Compensation
Number of quarterly installments \| installment	16			16
Vesting three \| Service-based vesting
Stock Based Compensation
Number of quarterly installments \| installment	8			8
On first Company vest date \| Vesting one \| Service-based vesting
Stock Based Compensation
Vesting percentage	25.00%
On or following one year anniversary \| Vesting one \| Service-based vesting
Stock Based Compensation
Number of quarterly installments \| installment	12			12

Summary of Significant Accounting Policies - Recently Issued Accounting Pronouncements (Details) - ASC 2014-09 $ in Millions	Feb. 01, 2019 USD ($)
Recently Adopted Accounting Pronouncements
Cumulative effect adjustment to opening accumulated deficit, net of tax	$ 23.4
Reduction in the amortization of deferred contract acquisition costs	23.7
Reduction in revenue	$ 0.3

Fair Value Measurements and Marketable Securities (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jul. 31, 2019 USD ($) item	Jan. 31, 2019 USD ($)	Jul. 31, 2018 USD ($)
Assets
Marketable securities	$ 94,003	$ 103,247
Liability
Number of probability adjusted milestone payments \| item	3
Probability adjusted milestone payment amount	$ 200
First milestone payment		$ 200
Fair value assets transfer, level 1 to 2	0		$ 0
Fair value assets transfer, level 2 to 1	0		0
Fair value liabilities transfer, level 1 to 2	0		0
Fair value liabilities transfer, level 2 to 1	0		$ 0
Other-than-temporary impairments	$ 0
Remaining contractual maturities of marketable securities	1 year	1 year
Write-off of contingent consideration	$ 500
Discount rate \| Minimum
Liability
Business combination, measurement input	3
Discount rate \| Maximum
Liability
Business combination, measurement input	3.02
Recurring
Assets
Total cash equivalents	$ 713,953	$ 70,073
Marketable securities	94,003	103,247
Total assets	807,956	173,320
Liability
Contingent consideration related to business combinations		474
Redeemable convertible preferred stock warrant liability		4,537
Total liabilities		5,011
Recurring \| Money market funds
Assets
Total cash equivalents	698,945	42,132
Recurring \| Corporate debt securities
Assets
Total cash equivalents	15,008	27,941
Marketable securities	79,985	91,796
Recurring \| US treasuries
Assets
Marketable securities	14,018	11,451
Level 1 \| Recurring
Assets
Total cash equivalents	698,945	42,132
Marketable securities	14,018	11,451
Total assets	712,963	53,583
Level 1 \| Recurring \| Money market funds
Assets
Total cash equivalents	698,945	42,132
Level 1 \| Recurring \| US treasuries
Assets
Marketable securities	14,018	11,451
Level 2 \| Recurring
Assets
Total cash equivalents	15,008	27,941
Marketable securities	79,985	91,796
Total assets	94,993	119,737
Level 2 \| Recurring \| Corporate debt securities
Assets
Total cash equivalents	15,008	27,941
Marketable securities	$ 79,985	91,796
Level 3 \| Recurring
Liability
Contingent consideration related to business combinations		474
Redeemable convertible preferred stock warrant liability		4,537
Total liabilities		$ 5,011

Fair Value Measurements and Marketable Securities - Redeemable convertible preferred stock warrant liability (Details) - Level 3 - Redeemable convertible preferred stock warrant - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Summary of changes in the redeemable convertible preferred stock warrant liability
Balance at beginning of period	$ 5,704	$ 961	$ 4,537	$ 961
Adjustment resulting from change in fair value recognized in the condensed consolidated statements of operations	4,855	2,055	6,022	2,055
Reclassification of liability for redeemable convertible preferred stock warrants to additional paid-in capital upon initial public offering	$ (10,559)		$ (10,559)
Balance at end of period		$ 3,016		$ 3,016
Fair Value, Recurring Basis, Unobservable Input Reconciliation, Liability, Gain (Loss), Statement of Income [Extensible List]	Other Nonoperating Income (Expense)	Other Nonoperating Income (Expense)	Other Nonoperating Income (Expense)	Other Nonoperating Income (Expense)

Fair Value Measurements and Marketable Securities - Additional Information (Details)	Jun. 14, 2019 shares
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Number of warrants converted	336,386
Basis of conversion to purchase common stock	1
Shares issued upon conversion of warrants	336,386
Class B common stock
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Shares issued	322,278

Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Jul. 31, 2019	Jan. 31, 2019
Prepaid Expenses and Other Current Assets
Prepaid expenses	$ 22,671	$ 14,390
Prepaid hosting services	4,280	2,915
Other current assets	2,397	1,105
Prepaid expenses and other current assets	$ 29,348	$ 18,410

Balance Sheet Components - Property and Equipment, Net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018	Jan. 31, 2019
Property and Equipment, Net
Property, Plant and Equipment, Gross	$ 144,825		$ 144,825		$ 100,423
Less: Accumulated depreciation and amortization	(36,836)		(36,836)		(26,688)
Total property and equipment, net	107,989		107,989		73,735
Purchases			47,000
Depreciation and amortization	5,300	$ 3,400	10,193	$ 6,424
Data center and other computer equipment
Property and Equipment, Net
Property, Plant and Equipment, Gross	55,980		55,980		44,735
Capitalized internal-use software
Property and Equipment, Net
Property, Plant and Equipment, Gross	25,764		25,764		22,209
Leasehold improvements
Property and Equipment, Net
Property, Plant and Equipment, Gross	9,916		9,916		10,011
Purchased software
Property and Equipment, Net
Property, Plant and Equipment, Gross	1,757		1,757		1,460
Furniture And Equipment
Property and Equipment, Net
Property, Plant and Equipment, Gross	3,417		3,417		2,553
Construction in process
Property and Equipment, Net
Property, Plant and Equipment, Gross	$ 47,991		$ 47,991		$ 19,455

Balance Sheet Components - Intangible Assets, Net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018	Jan. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 1,982		$ 1,982		$ 2,027
Less: Accumulated amortization	(1,244)		(1,244)		(979)
Intangible assets, net	738		738		1,048
Amortization of intangible assets	100	$ 200	285	$ 373
Aggregate future amortization expense
Fiscal 2020 (remaining six months)	206		206
Fiscal 2021	324		324
Fiscal 2022	123		123
Fiscal 2023	85		85
Intangible assets, net	738		738		1,048
Developed technology
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	1,246		$ 1,246		$ 1,269
Weighted-Average Remaining Useful life			15 months		15 months
Aggregate future amortization expense
Useful lives			3 years
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	613		$ 613		$ 632
Weighted-Average Remaining Useful life			39 months		39 months
Aggregate future amortization expense
Useful lives			5 years
Non-compete agreement
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 123		$ 123		$ 126
Weighted-Average Remaining Useful life			15 months		15 months
Aggregate future amortization expense
Useful lives			3 years

Balance Sheet Components - Accrued Expenses (Details) - USD ($) $ in Thousands	Jul. 31, 2019	Jan. 31, 2019
Accrued Expenses
Web hosting services	$ 7,478	$ 12,224
Accrued purchases of property and equipment	10,701	7,042
Other vendor expenses	12,707	12,326
Amounts due for employee expenses	1,682	949
Accrued expenses	32,568	32,541
Accrued Payroll and Benefits
Accrued payroll and related expenses	5,686	4,326
Accrued bonuses	5,433	5,459
Accrued commissions	8,938	9,499
Accrued payroll and benefits	$ 20,057	$ 19,284

Secured Revolving Credit Facility (Details)	1 Months Ended
Secured Revolving Credit Facility (Details)	Apr. 30, 2019 USD ($) item	Jan. 31, 2019 USD ($)
Minimum
Letters of Credit
Commitment fee (as a percent)	0.20%
Maximum
Letters of Credit
Commitment fee (as a percent)	0.30%
Revolving line of credit
Letters of Credit
Maximum borrowing capacity	$ 150,000,000.0
Incremental borrowing facility	$ 75,000,000.0
Borrowing facility multiple factor - first year \| item	6
Borrowing facility multiple factor - second year \| item	5
Borrowing facility multiple factor - thereafter	$ 4
Amount outstanding	0	$ 0
Letter of credit
Letters of Credit
Maximum borrowing capacity	10,000,000.0
Swingline
Letters of Credit
Maximum borrowing capacity	$ 10,000,000.0
Eurodollar Loans and ABR Loans
Letters of Credit
Applicable margin reduction (as a percent)	0.25%
Gross proceeds	$ 100,000,000.0
Eurodollar Loans \| LIBOR \| Minimum
Letters of Credit
Margin (as a percent)	2.75%
Eurodollar Loans \| LIBOR \| Maximum
Letters of Credit
Margin (as a percent)	3.25%
ABR Loans \| Federal funds rate
Letters of Credit
Margin (as a percent)	0.50%
ABR Loans \| Eurodollar Rate
Letters of Credit
Margin (as a percent)	1.00%
ABR Loans \| Eurodollar Rate \| Minimum
Letters of Credit
Margin (as a percent)	1.75%
ABR Loans \| Eurodollar Rate \| Maximum
Letters of Credit
Margin (as a percent)	2.25%

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Income Taxes
Income tax expense	$ 635	$ 362	$ 1,230	$ 483
Effective tax rate (as a percent)	(1.50%)	(1.60%)	(1.60%)

Redeemable Convertible Preferred Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	Jul. 31, 2019	Jan. 31, 2019
Redeemable Convertible Preferred Stock
Shares Authorized (in shares)	0	137,419
Shares Issued (in shares)	0	131,268
Shares Outstanding (in shares)	0	131,268
Net Carrying Value		$ 557,912
Liquidation Preference	$ 0	545,000
Redemption Value		$ 1,625,304
Series A-1
Redeemable Convertible Preferred Stock
Issue Price per Share (in dollars per share)		$ 0.50000
Shares Authorized (in shares)		52,300
Shares Issued (in shares)		52,300
Shares Outstanding (in shares)		52,300
Net Carrying Value		$ 76,325
Liquidation Preference		52,300
Redemption Value		$ 623,678
Series B
Redeemable Convertible Preferred Stock
Issue Price per Share (in dollars per share)		$ 1.40500
Shares Authorized (in shares)		21,523
Shares Issued (in shares)		21,352
Shares Outstanding (in shares)		21,352
Net Carrying Value		$ 44,320
Liquidation Preference		30,000
Redemption Value		$ 254,623
Series C
Redeemable Convertible Preferred Stock
Issue Price per Share (in dollars per share)		$ 4.52972
Shares Authorized (in shares)		22,275
Shares Issued (in shares)		22,077
Shares Outstanding (in shares)		22,077
Net Carrying Value		$ 99,900
Liquidation Preference		100,000
Redemption Value		$ 263,765
Series D
Redeemable Convertible Preferred Stock
Issue Price per Share (in dollars per share)		$ 5.69153
Shares Authorized (in shares)		17,570
Shares Issued (in shares)		17,570
Shares Outstanding (in shares)		17,570
Net Carrying Value		$ 99,845
Liquidation Preference		125,000
Redemption Value		$ 211,631
Series D-1
Redeemable Convertible Preferred Stock
Issue Price per Share (in dollars per share)		$ 5.69153
Shares Authorized (in shares)		5,394
Shares Issued (in shares)		5,394
Shares Outstanding (in shares)		5,394
Net Carrying Value		$ 30,626
Liquidation Preference		30,700
Redemption Value		$ 64,607
Series E
Redeemable Convertible Preferred Stock
Issue Price per Share (in dollars per share)		$ 16.46136
Shares Authorized (in shares)		18,357
Shares Issued (in shares)		12,575
Shares Outstanding (in shares)		12,575
Net Carrying Value		$ 206,896
Liquidation Preference		207,000
Redemption Value		$ 207,000

Redeemable Convertible Preferred Stock - Conversion (Details) $ in Thousands		6 Months Ended
	Jun. 14, 2019 USD ($) shares	Jul. 31, 2019 USD ($)
Redeemable Convertible Preferred Stock
Value of converted shares		$ 659,207
IPO \| Redeemable Convertible Preferred Stock
Redeemable Convertible Preferred Stock
Number of shares converted \| shares	131,267,586
Stock Conversion, Preferred Stock Conversion Ratio	1
Value of converted shares	$ 557,900

Common Stock (Details)	Jun. 14, 2019 Vote $ / shares shares	Jul. 31, 2019 $ / shares shares	Jan. 31, 2019 $ / shares shares
Class of Stock [Line Items]
Common stock, shares authorized (in shares) \| shares		0	220,000,000
Common stock, par value (in dollars per share) \| $ / shares		$ 0.0005	$ 0.0005
Preferred stock, shares authorized (in shares) \| shares		100,000,000	0
Preferred stock, par value (in dollars per share) \| $ / shares		$ 0.0005	$ 0.0005
Class A common stock
Class of Stock [Line Items]
Common stock, shares authorized (in shares) \| shares		2,000,000,000	0
Common stock, par value (in dollars per share) \| $ / shares		$ 0.0005	$ 0.0005
Class B common stock
Class of Stock [Line Items]
Common stock, shares authorized (in shares) \| shares		300,000,000	0
Common stock, par value (in dollars per share) \| $ / shares		$ 0.0005	$ 0.0005
IPO
Class of Stock [Line Items]
Preferred stock, shares authorized (in shares) \| shares	100,000,000
Preferred stock, par value (in dollars per share) \| $ / shares	$ 0.0005
IPO \| Class A common stock
Class of Stock [Line Items]
Common stock, shares authorized (in shares) \| shares	2,000,000,000
Common stock, par value (in dollars per share) \| $ / shares	$ 0.0005
Number of votes per share \| Vote	1
Common stock conversion ratio	1
IPO \| Class B common stock
Class of Stock [Line Items]
Common stock, shares authorized (in shares) \| shares	300,000,000
Common stock, par value (in dollars per share) \| $ / shares	$ 0.0005
Number of votes per share \| Vote	10
Common stock conversion ratio	1

Stock-Based Compensation - Stock Incentive Plan (Details) - shares	1 Months Ended
	May 31, 2019	Jan. 31, 2019
2011 Plan
Stock Based Compensation
Maximum number of shares of common stock that may be issued		79,498,016
2019 Plan \| Class A common stock
Stock Based Compensation
Maximum number of shares of common stock that may be issued	8,750,000
Threshold percentage of outstanding shares	2.00%

Stock-Based Compensation - Stock options - Assumptions (Details)	6 Months Ended
	Jul. 31, 2019	Jul. 31, 2018
Stock options
Assumptions
Expected term (in years)	6 years 18 days	6 years 18 days
Risk-free interest rate	2.00%	2.90%
Expected stock price volatility	37.70%	38.10%
Minimum \| Employee Stock Purchase Plan
Assumptions
Expected term (in years)	6 months
Risk-free interest rate	1.90%
Expected stock price volatility	33.00%
Maximum \| Employee Stock Purchase Plan
Assumptions
Expected term (in years)	2 years
Risk-free interest rate	2.20%
Expected stock price volatility	35.70%

Stock-Based Compensation - Stock options - Summary (Details) - Stock options - $ / shares shares in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2019	Apr. 30, 2019	Jul. 31, 2019
Number of Shares
Options outstanding at beginning of period (in shares)	26,200	26,535	26,535
Granted (in shares)	168	880
Exercised (in shares)	(4,776)	(706)
Canceled (in shares)	(325)	(509)
Options outstanding at end of period (in shares)	21,267	26,200	21,267
Options vested and expected to vest at end of period (in shares)	21,267		21,267
Options exercisable at end of period (in shares)	10,810		10,810
Weighted-Average Exercise Price Per Share
Options outstanding at beginning of period (in dollars per share)	$ 4.21	$ 3.87	$ 3.87
Granted (in dollars per share)	34.00	14.65
Exercised (in dollars per share)	3.62	2.14
Canceled (in dollars per share)	5.06	7.34
Options outstanding at end of period (in dollars per share)	4.56	$ 4.21	4.56
Options vested and expected to vest at end of period (in dollars per share)	4.56		4.56
Options exercisable at end of period (in dollars per share)	$ 1.97		$ 1.97

Stock-Based Compensation - Stock options - other details (Details) - Stock options - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018	Jan. 31, 2019
Stock Based Compensation
Options unvested (in shares)	1,107,201		1,107,201
Aggregate intrinsic value of options vested and exercisable	$ 1,034.0		$ 1,034.0		$ 181.1
Weighted-average remaining contractual term of options vested and exercisable (in years)			6 years 6 months		7 years 1 month 6 days
Weighted-average grant date fair value of options granted (in dollars per share)	$ 13.45	$ 5.36	$ 9.51	$ 5.36
Total intrinsic value of options exercised	$ 80.9	$ 6.6	$ 89.7	$ 7.6
Aggregate intrinsic value of stock options outstanding	1,797.2		$ 1,797.2		$ 286.1
Weighted-average remaining contractual term of stock options outstanding (in years)			7 years 6 months		7 years 10 months 24 days
Total unrecognized stock-based compensation expenses related to unvested options	$ 44.5		$ 44.5		$ 45.8
Expected to be amortized over weighted-average vesting period (in years)			2 years 6 months		3 years 4 months 24 days

Stock-Based Compensation - Early Exercise of Employee Options (Details) - Stock options - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jul. 31, 2019	Jul. 31, 2019	Jan. 31, 2019
Stock Based Compensation
Number of shares of common stock related to early exercised stock options subject to repurchase	1,316,192	1,316,192	545,941
Value of common stock related to early exercised stock options subject to repurchase	$ 10.5	$ 10.5	$ 1.2
Shares issued for exercise of stock options	1,037,356	1,037,356

Stock-Based Compensation - Restricted Stock Units (Details) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Sep. 30, 2018 tranche installment	Jul. 31, 2019 USD ($)	Jul. 31, 2018 USD ($)	Jul. 31, 2019 USD ($) tranche installment	Jul. 31, 2018 USD ($)	Jan. 31, 2019 USD ($)
Stock Based Compensation
Total stock-based compensation expense \| $		$ 29,859	$ 2,224	$ 33,611	$ 3,943
RSUs
Stock Based Compensation
Total unrecognized stock-based compensation expenses related to unvested RSUs \| $		83,200		$ 83,200		$ 51,900
Expected to be amortized over weighted-average vesting period (in years)				2 years 2 months 12 days		2 years 2 months 12 days
Service-based vesting
Stock Based Compensation
Number of vesting schedules \| tranche	3			3
Performance-based vesting
Stock Based Compensation
Stock-based compensation expense deferred \| $		$ 17,300		$ 17,300
Vesting one \| Service-based vesting \| On first Company vest date
Stock Based Compensation
Vesting percentage	25.00%
Vesting one \| Service-based vesting \| On or following one year anniversary
Stock Based Compensation
Number of quarterly installments \| installment	12			12
Vesting two \| Service-based vesting
Stock Based Compensation
Number of quarterly installments \| installment	16			16
Vesting three \| Service-based vesting
Stock Based Compensation
Number of quarterly installments \| installment	8			8

Stock-Based Compensation - RSU activity (Details) - RSUs - $ / shares shares in Thousands	3 Months Ended
	Jul. 31, 2019	Apr. 30, 2019
Number of Shares
RSUs outstanding at beginning of period (in shares)	4,753	4,059
Granted (in shares)	1,014	853
Forfeited (in shares)	(38)	(159)
RSUs outstanding at end of period (in shares)	5,729	4,753
RSUs expected to vest at end of period (in shares)	5,729
Weighted-Average Grant Date Fair Value Per Share
RSUs outstanding at beginning of period (in dollars per share)	$ 13.33	$ 12.66
Granted (in dollars per share)	41.35	18.32
Forfeited (in dollars per share)	20.59	12.62
RSUs outstanding at end of period (in dollars per share)	18.61	$ 13.33
RSUs expected to vest at end of period (in dollars per share)	$ 18.61

Stock-Based Compensation - Employee Stock Purchase Plan (Details) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	May 31, 2019 item shares	Jul. 31, 2019 USD ($)	Jul. 31, 2018 USD ($)	Jul. 31, 2019 USD ($)	Jul. 31, 2018 USD ($)	Jan. 31, 2019 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee payroll contributions accrued		$ 20,057		$ 20,057		$ 19,284
Stock-based compensation		29,859	$ 2,224	33,611	$ 3,943
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Threshold percentage of outstanding shares	1.00%
Offering period	24 months
Number of purchase periods \| item	4
Duration of purchase periods	6 months
Percentage of eligible compensation	15.00%
Maximum number of shares each participant can purchase during purchase period \| shares	2,500
Purchase price, threshold percentage of fair market value	85.00%
Employee payroll contributions accrued		2,500		2,500
Stock-based compensation		$ 2,300		$ 2,300
Class A common stock \| Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares of common stock that may be issued \| shares	3,500,000

Stock-Based Compensation - Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 29,859	$ 2,224	$ 33,611	$ 3,943
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	6,638	1,031	8,156	1,804
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	4,976	539	5,657	987
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	16,368	509	17,553	898
Subscription \| Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	1,233	88	1,498	151
Professional services \| Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 644	$ 57	$ 747	$ 103

Revenue, Deferred Revenue and Remaining Performance Obligations - Revenue from contracts type of customer and Region based on shipping address of customers (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Disaggregation of Revenue [Line Items]
Total revenue	$ 108,108	$ 55,701	$ 204,185	$ 102,990
Percentage of revenue	100.00%	100.00%	100.00%	100.00%
United States
Disaggregation of Revenue [Line Items]
Total revenue	$ 80,146	$ 44,338	$ 152,454	$ 80,293
Percentage of revenue	74.00%	80.00%	75.00%	78.00%
Europe, Middle East, and Africa
Disaggregation of Revenue [Line Items]
Total revenue	$ 15,006	$ 5,108	$ 28,419	$ 11,017
Percentage of revenue	14.00%	9.00%	14.00%	11.00%
Asia Pacific
Disaggregation of Revenue [Line Items]
Total revenue	$ 8,613	$ 4,000	$ 14,843	$ 7,662
Percentage of revenue	8.00%	7.00%	7.00%	7.00%
Other
Disaggregation of Revenue [Line Items]
Total revenue	$ 4,343	$ 2,255	$ 8,469	$ 4,018
Percentage of revenue	4.00%	4.00%	4.00%	4.00%
Channel partners
Disaggregation of Revenue [Line Items]
Total revenue	$ 70,438	$ 36,936	$ 134,897	$ 70,094
Percentage of revenue	65.00%	66.00%	66.00%	68.00%
Direct customers
Disaggregation of Revenue [Line Items]
Total revenue	$ 37,670	$ 18,765	$ 69,288	$ 32,896
Percentage of revenue	35.00%	34.00%	34.00%	32.00%

Revenue, Deferred Revenue and Remaining Performance Obligations (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jul. 31, 2019 USD ($)	Jul. 31, 2019 USD ($)
Contract with Customer, Liability [Line Items]
Revenue included in the contract liability balance	$ 89,600	$ 169,500
Changes in deferred revenue
Balance, beginning	315,212	290,067
Additions to deferred revenue	162,658	283,880
Recognition of deferred revenue	(108,108)	(204,185)
Balance, ending	369,762	369,762
Transaction price allocated to remaining performance obligations	$ 455,000	$ 455,000
Amortization over an estimated period of benefit for commissions, including referral fees paid to channel partner		4 years
Amortization over an estimated period of benefit for sales commissions associated with professional service contract		6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-08-01
Changes in deferred revenue
Subscription term	12 months	12 months
Percentage of performance obligation expected to be recognized		72.00%
Minimum \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-08-01
Changes in deferred revenue
Subscription term	1 year	1 year
Maximum \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-08-01
Changes in deferred revenue
Subscription term	3 years	3 years

Revenue, Deferred Revenue and Remaining Performance Obligations - Deferred contract acquisition costs (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jul. 31, 2019	Apr. 30, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jan. 31, 2019	Jul. 31, 2018	Jan. 31, 2017
Deferred contract acquisition costs
Balance, beginning	$ 64,197		$ 21,764		$ 63,071
Capitalization of contract acquisition costs	19,317	$ 19,300	9,272	$ 27,788	14,298
Amortization of deferred contract acquisition costs	(7,731)		(6,395)	(15,076)	(11,991)
Balance, ending	75,783	64,197	24,641	75,783	24,641
Deferred contract acquisition costs, current						$ 34,017	$ 28,847	$ 18,808
Deferred contract acquisition costs, noncurrent						41,766	$ 9,918	5,833
Total deferred contract acquisition costs	$ 64,197	$ 64,197	$ 21,764	$ 75,783	$ 63,071	$ 75,783		$ 24,641	$ 22,334

Commitments and Contingencies - Lease Commitments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Aggregate future minimum payments under noncancelable operating leases
Fiscal 2020 (remaining six months)	$ 3,204		$ 3,204
Fiscal 2021	5,877		5,877
Fiscal 2022	5,600		5,600
Fiscal 2023	4,753		4,753
Fiscal 2024	3,498		3,498
Thereafter	2,058		2,058
Total minimum lease payments	24,990		24,990
Rent expense	$ 2,200	$ 1,700	$ 4,000	$ 3,200

Commitments and Contingencies - Purchase Obligations (Details) $ in Thousands	Jul. 31, 2019 USD ($)
Purchase Obligations
Commitment to spend	$ 205,300
Noncancelable purchase obligations
Fiscal 2020 (remaining six months)	24,198
Fiscal 2021	63,714
Fiscal 2022	87,294
Fiscal 2023	32,483
Fiscal 2024	9,724
Thereafter	4,367
Total purchase commitments	$ 221,780

Commitments and Contingencies - Letters of Credit (Details) - USD ($) $ in Millions	Jul. 31, 2019	Apr. 30, 2019	Jan. 31, 2019
Sunnyvale, California
Letters of Credit
Unused standby letter of credit	$ 0.5	$ 0.5	$ 0.5
Austin, Texas
Letters of Credit
Unused standby letter of credit	$ 1.0		$ 0.8

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Commitments and Contingencies - Litigation (Details) - USD ($) $ in Millions	Jul. 31, 2019	Jan. 31, 2019
Litigation
Liability recorded	$ 0.0	$ 0.0
Warranties and Indemnification
Liabilities have been accrued associated with this indemnification provision	$ 0.0	$ 0.0

Geographic Information (Details) - USD ($) $ in Thousands	Jul. 31, 2019	Jan. 31, 2019
Geographic Information
Total property and equipment, net	$ 107,989	$ 73,735
United States
Geographic Information
Total property and equipment, net	99,624	70,699
International
Geographic Information
Total property and equipment, net	$ 8,365	$ 3,036

Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018	Jan. 31, 2019
Related Party Transaction [Line Items]
Revenue from subscriptions and professional services from related parties	$ 2.3	$ 1.3	$ 4.6	$ 2.7
Accounts receivable associated with related parties	0.1		0.1		$ 0.2
Purchases from related parties	0.9	$ 0.4	1.5	$ 0.8
Accounts payable to vendors	$ 0.0		$ 0.0
Maximum
Related Party Transaction [Line Items]
Accounts payable to vendors					$ 0.1

Net Loss Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net loss attributable to common stockholders	$ (51,889)	$ (32,877)	$ (77,866)	$ (66,494)
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted	130,091	44,105	89,335	43,864
Net loss per share attributable to Class A and Class B common stockholders, basic and diluted	$ (0.40)	$ (0.75)	$ (0.87)	$ (1.52)
Class A common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net loss attributable to common stockholders	$ (4,308)		$ (4,784)
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted	10,800		5,489
Net loss per share attributable to Class A and Class B common stockholders, basic and diluted	$ (0.40)		$ (0.87)
Class B common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net loss attributable to common stockholders	$ (47,581)		$ (73,082)
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted	119,291		83,846
Net loss per share attributable to Class A and Class B common stockholders, basic and diluted	$ (0.40)		$ (0.87)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Net Loss Per Share Attributable to Common Stockholders - Antidilutive (Details) - shares shares in Thousands	6 Months Ended
	Jul. 31, 2019	Jul. 31, 2018
Computation of diluted net loss per share attributable to common stockholders
Potential common shares excluded from diluted net loss per share	28,312	156,129
Redeemable Convertible Preferred Stock
Computation of diluted net loss per share attributable to common stockholders
Potential common shares excluded from diluted net loss per share		130,843
Redeemable convertible preferred stock warrant
Computation of diluted net loss per share attributable to common stockholders
Potential common shares excluded from diluted net loss per share		336
Shares of common stock subject to repurchase from outstanding stock options
Computation of diluted net loss per share attributable to common stockholders
Potential common shares excluded from diluted net loss per share	1,316	778
Restricted stock awards
Computation of diluted net loss per share attributable to common stockholders
Potential common shares excluded from diluted net loss per share	5,729	31
Stock options
Computation of diluted net loss per share attributable to common stockholders
Potential common shares excluded from diluted net loss per share	21,267	24,141