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Balance Sheet Components

9 Months Ended

Oct. 31, 2019

Balance Sheet Related Disclosures [Abstract]

Note 4. Balance Sheet Components

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following (in thousands):

	October 31,		January 31,
	2019		2019
Prepaid expenses	$	12,029	$	9,323
Capitalized qualifying implementation costs incurred in a hosting arrangement that is a service contract, net (1)		1,318		1,663
Other current assets		5,212		3,237
Total prepaid expenses and other current assets	$	18,559	$	14,223

(1)

Net capitalized stock-based compensation expense and the amortization of the capitalized costs were not material for the periods presented. We have not recorded any related impairment charges during the periods presented.

Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):

	October 31,			January 31,
	2019			2019
Servers and related equipment	$	299,810		$	215,626
Leasehold improvements		79,910			76,888
Computer hardware and software		22,669			20,614
Furniture and fixtures		14,211			13,661
Construction in progress		13,779			9,737
Total property and equipment		430,379			336,526
Less: accumulated depreciation		(240,514	)		(198,823	)
Total property and equipment, net	$	189,865		$	137,703

As of October 31, 2019, the gross carrying amount of property and equipment included $201.7 million of servers and related equipment and $12.4 million of construction in progress acquired under finance leases, and the accumulated depreciation of property and equipment acquired under these finance leases was $84.4 million. As of January 31, 2019, the gross carrying amount of property and equipment included $120.0 million of servers and related equipment and $8.8 million of construction in progress acquired under finance leases, and the accumulated depreciation of property and equipment acquired under these finance leases was $54.5 million.

Depreciation expense related to property and equipment was $15.8 million and $11.4 million for the three months ended October 31, 2019 and 2018, respectively, and $41.7 million and $34.7 million for the nine months ended October 31, 2019 and 2018, respectively. Included in these amounts were depreciation expense for servers and related equipment acquired under finance leases in the amount of $11.7 million and $6.6 million for the three months ended October 31, 2019 and 2018, respectively, and $29.8 million and $19.0 million for the nine months ended October 31, 2019 and 2018, respectively. Construction in progress primarily consists of servers and networking equipment and storage infrastructure being provisioned in our data center facilities. Interest capitalized to property and equipment was not material for the periods presented.

Operating Lease Right-of-Use Assets, Net

Operating lease right-of-use assets, net consisted of the following (in thousands):

	October 31,
	2019
Operating lease right-of-use assets	$	230,371
Less: accumulated amortization		(26,445	)
Operating lease right-of-use assets, net	$	203,926

Other Long-term Assets

Other long-term assets consisted of the following (in thousands):

	October 31,		January 31,
	2019		2019
Deposits, non-current	$	2,741	$	2,674
Internal-use software costs, net (1)		13,204		3,514
Other assets, non-current		3,826		4,858
Other long-term assets	$	19,771	$	11,046

(1)

Included in these amounts were $4.4 million and $0.8 million in net capitalized stock-based compensation expense as of the respective period. The amortization of the capitalized costs was not material for all periods. We have not recorded any material impairment charges during the periods presented.