v3.21.2
Balance Sheet Components
6 Months Ended
Jul. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Balance Sheet Components Balance Sheet Components
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following (in thousands):
July 31,
2021
January 31,
2021
Other current assets$38,178 $4,566 
Prepaid marketing23,104 10,852 
Prepaid software licenses17,785 20,596 
Prepaid expenses19,008 12,220 
Prepaid hosting services4,889 5,383 
Prepaid expenses and other current assets$102,964 $53,617 
Property and Equipment, Net
Property and equipment, net consisted of the following (in thousands):
July 31,
2021
January 31,
2021
Data center and other computer equipment$175,359 $146,220 
Capitalized internal-use software and website development54,839 44,358 
Leasehold improvements19,319 19,733 
Purchased software5,219 3,211 
Furniture and equipment6,469 6,498 
Construction in process67,602 35,528 
328,807 255,548 
Less: Accumulated depreciation and amortization(112,975)(88,534)
Property and equipment, net$215,832 $167,014 
Construction in process primarily includes data center equipment purchased that has not yet been placed in service. As of July 31, 2021, $57.4 million of data center equipment was purchased but not yet been placed into service.
Depreciation and amortization expense of property and equipment was $12.7 million and $9.4 million during the three months ended July 31, 2021 and July 31, 2020, respectively, and $24.7 million and $17.6 million during the six months ended July 31, 2021 and July 31, 2020, respectively.
There was no impairment of website and internal-use software during the three and six months ended July 31, 2021 and July 31, 2020. The Company capitalized $7.6 million and $2.4 million in website and internal-use software during the three months ended July 31, 2021 and July 31, 2020, and $13.8 million and $4.7 million during the six months ended July 31, 2021 and July 31, 2020, respectively. Amortization expense associated with website and internal-use software totaled $2.8 million and $1.8 million during the three months ended July 31, 2021 and July 31, 2020, respectively, and $5.3 million and $3.7 million during the six months ended July 31, 2021 and July 31, 2020, respectively. The net book value of capitalized website and internal-use software was $28.8 million and $20.1 million as of July 31, 2021 and January 31, 2021, respectively.
Intangible Assets, Net
Total intangible assets, net consisted of the following (dollar in thousands):
July 31, 2021Weighted-Average
Remaining 
Useful
Life
Gross Carrying AmountAccumulated AmortizationNet Amount
(in months)
Developed technology$82,416 $6,062 $76,354 87
Customer relationships9,084 1,215 7,869 77
Other acquired intangible assets1,774 417 1,357 55
Total$93,274 $7,694 $85,580 
January 31, 2021Weighted-Average
Remaining 
Useful
Life
Gross Carrying AmountAccumulated AmortizationNet Amount
(in months)
Developed technology$14,513 $2,193 $12,320 56
Customer relationships3,769 649 3,120 54
Other acquired intangible assets399 162 237 185
Total$18,681 $3,004 $15,677 
Amortization of developed technology, customer relationships, and other acquired intangible assets 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 $3.3 million and $0.1 million during the three months ended July 31, 2021 and July 31, 2020, and $5.7 million and $0.2 million during the six months ended July 31, 2021 and July 31, 2020, respectively.
The estimated aggregate future amortization expense of intangible assets as of July 31, 2021 is as follows (in thousands):
Total
Fiscal 2022 (remaining six months) $6,634 
Fiscal 202313,199 
Fiscal 202412,502 
Fiscal 202512,418 
Fiscal 202611,331 
Thereafter29,496 
Total amortization expense$85,580 
The developed technology, customer relationships, and other acquired intangible assets are amortized over their estimated useful lives, generally on a straight-line basis for periods ranging from 2 to 20 years.
Goodwill
Goodwill during the six months ended July 31, 2021 consisted of the following (in thousands):
Amounts
Goodwill as of January 31, 2021$83,566 
Goodwill acquired(1)
291,273 
Foreign currency translation(529)
Goodwill as of July 31, 2021$374,310 
__________________________________
(1)Goodwill acquired resulted from the acquisition of Humio. Refer to Note 12 for additional information.
Accrued Expenses
Accrued expenses consisted of the following (in thousands):
July 31,
2021
January 31,
2021
Web hosting services$17,795 $14,187 
Other accrued expenses14,671 11,372 
Accrued interest expense11,937 687 
Accrued marketing10,970 14,592 
Accrued purchases of property and equipment8,979 4,570 
Accrued legal and accounting5,810 5,709 
Accrued expenses$70,162 $51,117 
Accrued Payroll and Benefits
Accrued payroll and benefits consisted of the following (in thousands):
July 31,
2021
January 31,
2021
Accrued payroll and related expenses$40,694 $16,528 
Accrued commissions32,588 32,300 
Accrued bonuses13,518 12,110 
Employee Stock Purchase Plan8,662 10,969 
Accrued payroll and benefits$95,462 $71,907 

In April 2020, the Company began deferring payment on its share of payroll taxes owed, as permitted by the CARES Act through December 31, 2020. As of July 31, 2021 and January 31, 2021, the Company had deferred $5.1 million of payroll taxes in other current liabilities and $5.1 million of payroll taxes in other liabilities, noncurrent on the condensed consolidated balance sheet.