v3.23.2
Balance Sheet Components
 6 Months Ended
Jul. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Balance Sheet Components Balance Sheet Components
Property and Equipment, Net
Property and equipment, net consisted of the following (in thousands):
July 31, 2023January 31, 2023
Data center and other computer equipment$432,093 $297,585 
Capitalized internal-use software and website development costs145,977 113,276 
Leasehold improvements27,014 24,944 
Purchased software9,696 6,384 
Furniture and equipment7,926 7,412 
Construction in progress210,837 259,013 
833,543 708,614 
Less: Accumulated depreciation and amortization(271,956)(216,279)
Property and equipment, net$561,587 $492,335 
Construction in progress primarily includes data center equipment purchased that has not yet been placed in service. Data center equipment that was purchased but not yet been placed into service was $185.7 million as of July 31, 2023.
Depreciation and amortization expense of property and equipment was $29.8 million and $17.8 million during the three months ended July 31, 2023 and July 31, 2022, respectively, and $56.2 million and $34.1 million during the six months ended July 31, 2023 and July 31, 2022, respectively.
There was no impairment of property and equipment during the three and six months ended July 31, 2023 and July 31, 2022. The Company capitalized $23.6 million and $13.5 million in internal-use software and website development costs during the three months ended July 31, 2023 and July 31, 2022, respectively, and $40.2 million and $21.6 million during the six months ended July 31, 2023 and July 31, 2022, respectively. Amortization expense associated with internal-use software and website development costs totaled $8.4 million and $4.9 million during the three months ended July 31, 2023 and July 31, 2022, respectively, and $15.9 million and $9.2 million during the six months ended July 31, 2023 and July 31, 2022, respectively. The net book value of capitalized internal-use software and website development costs was $90.8 million and $66.3 million as of July 31, 2023 and January 31, 2023, respectively.
Intangible Assets, Net
Total intangible assets, net consisted of the following (dollars in thousands):
July 31, 2023Weighted-Average
Remaining 
Useful
Life
Gross Carrying AmountAccumulated AmortizationNet Amount
(in months)
Developed technology$101,460 $33,027 $68,433 62
Customer relationships12,038 4,730 7,308 56
Other acquired intangible assets5,245 1,847 3,398 140
Total$118,743 $39,604 $79,139 
January 31, 2023Weighted-Average
Remaining 
Useful
Life
Gross Carrying AmountAccumulated AmortizationNet Amount
(in months)
Developed technology$101,452 $25,866 $75,586 68
Customer relationships12,032 3,831 8,201 61
Other acquired intangible assets4,717 1,615 3,102 147
Total$118,201 $31,312 $86,889 
Amortization expense of intangible assets was $4.1 million during the three months ended July 31, 2023 and July 31, 2022, and $8.3 million and $8.2 million during the six months ended July 31, 2023 and July 31, 2022, respectively.
The estimated aggregate future amortization expense of intangible assets as of July 31, 2023 is as follows (in thousands):
Total
Fiscal 2024 (remaining six months) $8,219 
Fiscal 202516,422 
Fiscal 202615,322 
Fiscal 202713,147 
Fiscal 202812,634 
Thereafter13,395 
Total amortization expense$79,139 
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
The change in goodwill during the six months ended July 31, 2023 consisted of the following (in thousands):
Amounts
Goodwill as of January 31, 2023$430,645 
Foreign currency translation52 
Goodwill as of July 31, 2023$430,697 
Accrued Expenses
Accrued expenses consisted of the following (in thousands):
July 31, 2023January 31, 2023
Web hosting services$58,804 $65,589 
Accrued professional services14,996 13,281 
Accrued marketing13,759 11,435 
Other accrued expenses13,221 11,247 
Accrued interest expense10,375 10,375 
Accrued partner commissions 5,653 5,800 
Accrued purchases of property and equipment5,611 20,157 
Accrued expenses$122,419 $137,884 
Accrued Payroll and Benefits
Accrued payroll and benefits consisted of the following (in thousands):
July 31, 2023January 31, 2023
Accrued commissions$58,202 $77,287 
Accrued payroll and related expenses41,136 39,907 
Accrued bonuses26,540 34,098 
Employee Stock Purchase Plan12,593 17,475 
Accrued payroll and benefits$138,471 $168,767