Income Taxes (Tables)

12 Months Ended

Jan. 31, 2020

The components of the net income (loss) before the provision for income taxes were as follows:

The provision for income taxes was as follows:


	Year Ended January 31,
	2020		2019		2018

	(in thousands)
Current:
Federal	$	—	$	—	$	—
State	14		80		46
Foreign	2,226		685		258
Total current income tax expense	2,240		765		304
Deferred:
Federal	—		—		—
State	—		—		—
Foreign	(1,183)		—		—
Total deferred income tax expense	(1,183)		—		—
Total provision for income taxes	$	1,057	$	765	$	304

The provision for income taxes differs from the amount computed by applying the statutory federal tax rate as follows:


	Year Ended January 31,
	2020			2019			2018

	(in thousands)
Tax at federal statutory rate	$	5,536		$	1,764		$	(1,157)
State taxes	14			67			45
Foreign rate differential	(2,096)			(1,627)			(26)
Stock-based compensation	(32,070)			1,662			3,272
Permanent items	1,009			809			117
Research and development credits	(2,808)			(289)			(150)
Tax uncertainties	1,019			515			516
Change in valuation allowance	30,932			(1,438)			(1,537)
Change in federal tax rate	—			—			(881)
Other	(479)			(698)			105
Total	$	1,057		$	765		$	304
Effective tax rate	4.0		%	9.2		%	(8.6)		%

Significant components of our deferred income tax assets as of January 31, 2020 and 2019 are as follows:


	As of January 31,
	2020		2019

	(in thousands)
Deferred tax assets:
Net operating loss carryforwards	$	37,507	$	6,517
Research and development credit carryforwards	5,701		972
Stock-based compensation	4,145		133
Accruals and reserves	11,586		6,856
Deferred revenue	5,234		2,646
Operating lease liabilities	17,716		—
Total deferred tax assets	81,889		17,124
Valuation allowance	(36,353)		(877)
Total deferred tax assets net of valuation allowance	45,536		16,247

Deferred tax liabilities:
Property and equipment	(6,744)		(4,779)
Deferred commissions	(21,156)		(11,468)
Operating right-of-use assets	(16,453)		—
Total deferred tax liabilities	(44,353)		(16,247)

Net deferred tax assets	$	1,183	$	—

A reconciliation of the beginning and ending balance of total unrecognized tax position is as follows:


	Unrecognized Tax Benefits
	(in thousands)

Balance - January 31, 2017	$	1,205
Increases related to current years’ tax positions	771

Balance - January 31, 2018	1,976
Increases related to current years’ tax positions	802

Balance - January 31, 2019	2,778
Increases related to current years’ tax positions	5,328

Balance - January 31, 2020	$	8,106