Income Taxes (Tables)

12 Months Ended

Jan. 31, 2021

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

The provision for income taxes was as follows:


	Year Ended January 31,
	2021		2020		2019

	(in thousands)
Current:
Federal	$	—	$	—	$	—
State	1,023		14		80
Foreign	3,933		2,226		685
Total current income tax expense	4,956		2,240		765
Deferred:
Federal	689		—		—
State	248		—		—
Foreign	(175)		(1,183)		—
Total deferred income tax expense	762		(1,183)		—
Total provision for income taxes	$	5,718	$	1,057	$	765

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


	Year Ended January 31,
	2021			2020			2019

	(in thousands)
Tax at federal statutory rate	$	142,387		$	5,536		$	1,764
State taxes	636			14			67
Foreign rate differential	89			(2,096)			(1,627)
Stock-based compensation	(302,362)			(32,070)			1,662
Permanent items	2,228			1,009			809
Research and development credits	(3,170)			(2,808)			(289)
Tax uncertainties	(607)			1,019			515
Change in valuation allowance	165,869			30,932			(1,438)

Other	648			(479)			(698)
Total	$	5,718		$	1,057		$	765
Effective tax rate	0.8		%	4.0		%	9.2		%

Significant components of our deferred income tax assets as of January 31, 2021 and 2020 are as follows:


	As of January 31,
	2021		2020

	(in thousands)
Deferred tax assets:
Net operating loss carryforwards	$	341,487	$	37,507
Research and development credit carryforwards	12,191		5,701
Stock-based compensation	37,255		4,145
Accruals and reserves	29,195		11,586
Deferred revenue	6,565		5,234
Operating lease liabilities	27,842		17,716
Total deferred tax assets	454,535		81,889
Valuation allowance	(335,051)		(36,353)
Total deferred tax assets net of valuation allowance	119,484		45,536

Deferred tax liabilities:
Property and equipment and intangible assets	(17,229)		(6,744)
Deferred contract acquisition costs	(76,593)		(21,156)
Operating right-of-use assets	(25,550)		(16,453)
Total deferred tax liabilities	(119,372)		(44,353)

Net deferred tax assets	$	112	$	1,183

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


	Unrecognized Tax Benefits
	(in thousands)

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

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

Balance - January 31, 2020	8,106
Increases related to current year’s tax positions	6,001
Increases related to prior year’s tax positions	314
Current year acquisitions	885
Lapse of statute of limitations	(422)

Balance - January 31, 2021	$	14,884