Item 6. Selected Financial Data

15K characters. Original on sec.gov · Markdown

Item 6. Selected Financial Data

The selected consolidated statements of operations data presented below for fiscal 2021, fiscal 2020, and fiscal 2019 and the consolidated balance sheets data as of January 31, 2021 and 2020 are derived from our audited consolidated financial statements that are included elsewhere in this Annual Report on Form 10-K. The selected consolidated statements of operations data for fiscal 2018 and 2017 and the consolidated balance sheets data as of January 31, 2019, 2018, and 2017 have been derived from our audited consolidated financial statements that are not included elsewhere in this Annual Report on Form 10-K. Our historical results are not necessarily indicative of the results that may be expected in the future. Effective February 1, 2020, we adopted the Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) as discussed in Note 2, “Summary of Significant Accounting Policies” to our consolidated financial statements in this Annual Report on Form 10-K. Prior periods were not retrospectively adjusted, and accordingly, the consolidated statements of operations for the years ended January 31, 2020, 2019, 2018, and 2017 and the consolidated balance sheets as of January 31, 2020, 2019, 2018, and 2017 were prepared using the prior lease accounting standard referred to as ASC Topic 840. Effective February 1, 2019, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (“ASC 606”) as discussed in Note 2, “Summary of Significant Accounting Policies” to our consolidated financial statements in this Annual Report on Form 10-K. Prior periods were not retrospectively adjusted, and accordingly, the consolidated statement of operations data for the years ended January 31, 2019, 2018, and 2017 and the consolidated balance sheets data as of January 31, 2019, 2018, and 2017 were prepared using the prior revenue recognition standard referred to as ASC 605. The selected consolidated financial data and other data set forth below should be read in conjunction with the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10-K.


	Year Ended January 31,
	2021		2020		2019		2018		2017

	(in thousands, except per share data)
Consolidated Statement of Operations Data:
Revenue
Subscription	$	804,670	$	436,323	$	219,401	$	92,568	$	37,895
Professional services	69,768		45,090		30,423		26,184		14,850
Total revenue	874,438		481,413		249,824		118,752		52,745
Cost of revenue
Subscription (1)(2)	185,212		112,474		69,208		39,857		24,378
Professional services (1)	44,333		29,153		18,030		14,629		9,628
Total cost of revenue	229,545		141,627		87,238		54,486		34,006
Gross profit	644,893		339,786		162,586		64,266		18,739
Operating expenses
Sales and marketing(1)(2)	401,316		266,595		172,682		104,277		53,748
Research and development(1)(2)	214,670		130,188		84,551		58,887		39,145
General and administrative(1)(3)	121,436		89,068		42,217		32,542		16,402
Total operating expenses	737,422		485,851		299,450		195,706		109,295
Loss from operations	(92,529)		(146,065)		(136,864)		(131,440)		(90,556)
Interest expense(4)	(1,559)		(442)		(428)		(1,648)		(615)
Other income (expense), net	6,219		6,725		(1,418)		(1,473)		(82)
Loss before provision for income taxes	(87,869)		(139,782)		(138,710)		(134,561)		(91,253)
Provision for income taxes	4,760		1,997		1,367		929		87
Net loss	$	(92,629)	$	(141,779)	$	(140,077)	$	(135,490)	$	(91,340)


Accretion of redeemable convertible preferred stock	—		—		—		(5,853)		(17,012)
Net loss attributable to Class A and Class B common stockholders, basic and diluted	$	(92,629)	$	(141,779)	$	(140,077)	$	(141,343)	$	(108,352)
Net loss per share attributable to Class A and Class B common stockholders, basic and diluted(5)	$	(0.43)	$	(0.96)	$	(3.12)	$	(3.38)	$	(2.73)
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted(5)	217,756		148,062		44,863		41,876		39,706

(1)Includes stock-based compensation expense as follows:


	Year Ended January 31,
	2021		2020		2019		2018		2017

	(in thousands)
Subscription cost of revenue	$	11,705	$	5,226	$	689	$	89	$	50
Professional services cost of revenue	6,005		2,486		205		252		41
Sales and marketing	50,557		23,919		5,175		1,386		638
Research and development	40,274		15,403		7,815		3,429		561
General and administrative	41,134		32,906		6,621		7,187		704
Total stock-based compensation expense	$	149,675	$	79,940	$	20,505	$	12,343	$	1,994

(2)Includes amortization of acquired intangible assets as follows:


	Year Ended January 31,
	2021		2020		2019		2018		2017

	(in thousands)
Subscription cost of revenue	$	1,057	$	323	$	327	$	287	$	97
Sales and marketing	362		123		143		20		—
Research and development	29		41		113		321		—
Total amortization of purchased intangibles	$	1,448	$	487	$	583	$	628	$	97

(3)Includes acquisition-related expenses as follows:


	Year Ended January 31,
	2021		2020		2019		2018		2017

	(in thousands)
General and administrative	$	3,758	$	—	$	—	$	167	$	—
Total acquisition-related expenses	$	3,758	$	—	$	—	$	167	$	—

(4)Includes amortization of debt issuance costs and discount as follows:


	Year Ended January 31,
	2021		2020		2019		2018		2017

	(in thousands)
Interest expense	$	347	$	—	$	—	$	—	$	—
Total amortization of debt issuance costs and discount	$	347	$	—	$	—	$	—	$	—

(5) See Note 2 and Note 16 to our consolidated financial statements elsewhere in this Annual Report on Form 10-K for an explanation of the method used to calculate our basic and diluted net loss per share attributable to our common stockholders and the weighted-average number of shares used in the computation of the per share amounts.


	As of January 31,
	2021		2020		2019		2018		2017

	(in thousands)
Consolidated Balance Sheets Data:
Cash, cash equivalents and marketable securities	$	1,918,608	$	912,064	$	191,655	$	65,772	$	33,450
Working capital (deficit)(1)	$	1,428,721	$	678,540	$	49,968	$	(12,279)	$	(19,013)
Total assets	$	2,732,533	$	1,404,906	$	433,219	$	217,703	$	91,371
Deferred revenue, current and noncurrent	$	911,895	$	571,168	$	290,067	$	158,950	$	76,551
Long-term debt	$	738,029	$	—	$	—	$	—	$	—
Redeemable convertible preferred stock	$	—	$	—	$	557,912	$	351,016	$	214,728
Accumulated deficit	$	(730,116)	$	(637,487)	$	(519,126)	$	(378,948)	$	(243,458)
Total stockholders’ equity (deficit)	$	871,874	$	742,607	$	(487,793)	$	(369,474)	$	(243,453)

(1)Working capital (deficit) is defined as current assets less current liabilities.

Previous: Item 5. Markets Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities · Next: Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations