Financial Instruments and Fair Value

3 Months Ended

Apr. 30, 2024

Investments, All Other Investments [Abstract]

Financial Instruments and Fair Value

2. Financial Instruments and Fair Value

The Company invests a portion of its cash in money market funds and debt securities that are denominated in United States dollars. The debt security investment portfolio consists of commercial paper, corporate bonds, asset-backed securities and U.S. government securities. All of the investments are classified as available-for-sale securities and reported at fair value in the condensed consolidated balance sheets as follows:

	As of April 30, 2024
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Money market funds	$	4,061	$	—	$	—		$	4,061
Commercial paper		15,781		—		—			15,781
Corporate bonds		42,221		37		(297	)		41,961
Asset-backed securities		12,309		—		(123	)		12,186
U.S. government securities		23,189		—		(189	)		23,000
Total cash equivalents and marketable debt securities	$	97,561	$	37	$	(609	)	$	96,989
	As of January 31, 2024
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Money market funds	$	296	$	—	$	—		$	296
Commercial paper		30,806		—		—			30,806
Corporate bonds		38,867		180		(135	)		38,912
Asset-backed securities		15,212		14		(96	)		15,130
U.S. government securities		21,118		—		(146	)		20,972
Total cash equivalents and marketable debt securities	$	106,299	$	194	$	(377	)	$	106,116

The following table provides the breakdown of unrealized losses as of April 30, 2024 and January 31, 2024, respectively, aggregated by investment category and length of time that individual securities have been in a continuous loss position:

	As of April 30, 2024
	Less than 12 Months					12 Months or Greater					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(in thousands)
Corporate bonds	$	27,191	$	(165	)	$	7,963	$	(132	)	$	35,154	$	(297	)
Asset-backed securities		4,981		(19	)		7,205		(104	)		12,186		(123	)
U.S. government securities		15,357		(97	)		7,643		(92	)		23,000		(189	)
Total marketable debt securities at loss position	$	47,529	$	(281	)	$	22,811	$	(328	)	$	70,340	$	(609	)
	As of January 31, 2024
	Less than 12 Months					12 Months or Greater					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(in thousands)
Corporate bonds	$	9,050	$	(19	)	$	8,363	$	(116	)	$	17,413	$	(135	)
Asset-backed securities		4,821		(15	)		6,289		(81	)		11,110		(96	)
U.S. government securities		15,020		(65	)		5,952		(81	)		20,972		(146	)
Total marketable debt securities at loss position	$	28,891	$	(99	)	$	20,604	$	(278	)	$	49,495	$	(377	)

	As of
	April 30, 2024		January 31, 2024
	(in thousands)
Included in cash equivalents	$	25,452	$	31,103
Included in marketable debt securities		71,537		75,013
Total cash equivalents and marketable debt securities	$	96,989	$	106,116

The contractual maturities of the investments at April 30, 2024 and January 31, 2024 were as follows:

	As of
	April 30, 2024		January 31, 2024
	(in thousands)
Due within one year	$	54,987	$	50,216
Due in 1 - 5 years		42,002		55,900
Total cash equivalents and marketable debt securities	$	96,989	$	106,116

The unrealized gains and losses on the available-for-sale securities were primarily caused by fluctuations in market value and interest rates as a result of the economic environment. In accordance with ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, the Company estimates the expected losses at an individual security level whenever a security’s fair value is below its amortized cost basis using the discounted cash flow method. The credit-related portion of the loss is recognized in other income, net, in the condensed consolidated statements of operations but is limited to the difference between the fair value and the amortized cost basis of the security, adjusted for accrued interest. The non-credit-related portion of the loss is recognized in accumulated other comprehensive loss in the condensed consolidated balance sheets. The credit-related losses were not material for the three months ended April 30, 2024 and 2023, respectively.

Interest income, including amortization of premiums and accretion of discounts related to the investments, as well as realized gains and losses from sales of the investments are recorded in other income, net, in the condensed consolidated statements of operations. For the three months ended April 30, 2024 and 2023, interest income and realized gains and losses, net, were approximately $1.3 million and $1.0 million, respectively.

The following fair value hierarchy is applied for disclosure of the inputs used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows:

Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2—Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments.

Level 3—Unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value. The inputs require significant management judgment or estimation.

The Company measures the fair value of money market funds using quoted prices in active markets for identical assets and classifies them within Level 1. The fair value of the Company’s investments in other debt securities are obtained based on quoted prices for similar assets in active markets and are classified within Level 2.

The following tables present the fair value of the financial instruments measured on a recurring basis as of April 30, 2024 and January 31, 2024, respectively:

	As of April 30, 2024
	Total		Level 1		Level 2		Level 3
	(in thousands)
Money market funds	$	4,061	$	4,061	$	—	$	—
Commercial paper		15,781		—		15,781		—
Corporate bonds		41,961		—		41,961		—
Asset-backed securities		12,186		—		12,186		—
U.S. government securities		23,000		—		23,000		—
Total cash equivalents and marketable debt securities	$	96,989	$	4,061	$	92,928	$	—
	As of January 31, 2024
	Total		Level 1		Level 2		Level 3
	(in thousands)
Money market funds	$	296	$	296	$	—	$	—
Commercial paper		30,806		—		30,806		—
Corporate bonds		38,912		—		38,912		—
Asset-backed securities		15,130		—		15,130		—
U.S. government securities		20,972		—		20,972		—
Total cash equivalents and marketable debt securities	$	106,116	$	296	$	105,820	$	—

In addition to available-for-sale securities, the Company also has fixed deposit accounts that are classified as cash equivalents. As of April 30, 2024 and January 31, 2024, the carrying value of fixed deposit accounts was approximately $12.9 million and $7.0 million, respectively, which represented their fair value within level 1 hierarchy.