Income Taxes (Tables)

12 Months Ended

Jan. 31, 2022

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

The (benefit from) provision for income taxes was as follows:


	Year Ended January 31,
	2022		2021		2020

	(in thousands)
Current:
Federal	$	69,853	$	—	$	—
State	20,174		1,023		14
Foreign	12,027		3,933		2,226
Total current income tax expense	102,054		4,956		2,240
Deferred:
Federal	(293,704)		689		—
State	(82,561)		248		—
Foreign	204		(175)		(1,183)
Total deferred income tax expense	(376,061)		762		(1,183)
Total (benefit from) provision for income taxes	$	(274,007)	$	5,718	$	1,057

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


	Year Ended January 31,
	2022			2021			2020

	(in thousands, except percentages)
Tax at federal statutory rate	$	231,350		$	142,387		$	5,536
State taxes	24,840			636			14
Foreign rate differential	1,830			89			(2,096)
Stock-based compensation	(135,250)			(302,362)			(32,070)
Foreign-derived intangible income deduction	(34,131)			—			—
Permanent items	3,971			2,228			1,009
Research and development credits	(42,973)			(3,170)			(2,808)
Tax uncertainties	244			(607)			1,019
Change in valuation allowance	(322,231)			165,869			30,932

Other	(1,658)			648			(479)
Total	$	(274,007)		$	5,718		$	1,057
Effective tax rate	(24.9)		%	0.8		%	4.0		%

Significant components of our deferred income tax assets as of January 31, 2022 and 2021 are as follows:


	As of January 31,
	2022		2021

	(in thousands)
Deferred tax assets:
Net operating loss carryforwards	$	21,558	$	341,487
Research and development credit carryforwards	9,985		12,191
Stock-based compensation	44,490		37,255
Accruals and reserves	14,475		29,195
Deferred revenue	260,322		6,565
Capitalized research expenditures	131,010		—
Operating lease liabilities	25,892		27,842
Total deferred tax assets	507,732		454,535
Valuation allowance	(12,605)		(335,051)
Total deferred tax assets net of valuation allowance	495,127		119,484

Deferred tax liabilities:
Property and equipment and intangible assets	(26,733)		(17,229)
Deferred contract acquisition costs	(62,814)		(76,593)
Operating right-of-use assets	(23,466)		(25,550)
Total deferred tax liabilities	(113,013)		(119,372)

Net deferred tax assets	$	382,114	$	112

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


Unrecognized Tax Benefits (in thousands)	Year Ended January 31,
	2022		2021		2020

Balance, beginning of year	$	14,884	$	8,106	$	2,778
Tax Positions taken in prior year:
Gross increases	—		314		—
Gross decreases	(3,764)		—		—
Tax Positions taken in current year:
Gross increases	8,211		6,001		5,328
Gross decreases	—		—		—
Lapse of Statute of Limitations	(160)		(422)		—
Acquisitions	—		885		—



Balance, end of year	$	19,171	$	14,884	$	8,106