XML 17 R11.htm IDEA: XBRL DOCUMENT v3.24.3
Financial Instruments and Fair Value
9 Months Ended
Oct. 31, 2024
Investments, All Other Investments [Abstract]  
Financial Instruments and Fair Value

2. Financial Instruments and Fair Value

The Company maintains its cash primarily in accounts with reputable financial institutions. The Company also invests a portion of its cash in money market funds and debt securities that are denominated in United States dollars, as well as non-marketable equity investments in privately-held companies. The debt security investment portfolio consists of commercial paper, corporate bonds, asset-backed securities and U.S. government securities. All of the money market funds and debt security investments are classified as available-for-sale securities and reported at fair value in the condensed consolidated balance sheets as follows:

 

 

 

As of October 31, 2024

 

 

 

Amortized Cost

 

 

Unrealized Gains

 

 

Unrealized Losses

 

 

Fair Value

 

 

 

(in thousands)

 

Money market funds

 

$

82

 

 

$

 

 

$

 

 

$

82

 

Commercial paper

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

53,537

 

 

 

134

 

 

 

(148

)

 

 

53,523

 

Asset-backed securities

 

 

20,688

 

 

 

15

 

 

 

(91

)

 

 

20,612

 

U.S. government securities

 

 

25,474

 

 

 

 

 

 

(207

)

 

 

25,267

 

Total cash equivalents and marketable debt securities

 

$

99,781

 

 

$

149

 

 

$

(446

)

 

$

99,484

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 from available-for-sale securities as of October 31, 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 October 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

 

$

23,362

 

 

$

(126

)

 

$

5,103

 

 

$

(22

)

 

$

28,465

 

 

$

(148

)

Asset-backed securities

 

 

9,132

 

 

 

(62

)

 

 

4,998

 

 

 

(29

)

 

 

14,130

 

 

 

(91

)

U.S. government securities

 

 

20,486

 

 

 

(181

)

 

 

4,782

 

 

 

(26

)

 

 

25,268

 

 

 

(207

)

Total marketable debt securities at loss position

 

$

52,980

 

 

$

(369

)

 

$

14,883

 

 

$

(77

)

 

$

67,863

 

 

$

(446

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

October 31, 2024

 

 

January 31, 2024

 

 

 

(in thousands)

 

Included in cash equivalents

 

$

82

 

 

$

31,103

 

Included in marketable debt securities

 

 

99,402

 

 

 

75,013

 

Total cash equivalents and marketable debt securities

 

$

99,484

 

 

$

106,116

 

 

The contractual maturities of available-for-sale securities at October 31, 2024 and January 31, 2024 were as follows:

 

 

 

As of

 

 

 

October 31, 2024

 

 

January 31, 2024

 

 

 

(in thousands)

 

Due within one year

 

$

30,384

 

 

$

50,216

 

Due in 1 - 5 years

 

 

69,100

 

 

 

55,900

 

Total cash equivalents and marketable debt securities

 

$

99,484

 

 

$

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 and nine months ended October 31, 2024 and 2023, respectively.

The following fair value hierarchy is applied for disclosure of the inputs used to measure fair value of available-for-sale securities. 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 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 available-for-sale securities measured on a recurring basis as of October 31, 2024 and January 31, 2024, respectively:

 

 

 

As of October 31, 2024

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(in thousands)

 

Money market funds

 

$

82

 

 

$

82

 

 

$

 

 

$

 

Commercial paper

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

53,523

 

 

 

 

 

 

53,523

 

 

 

 

Asset-backed securities

 

 

20,612

 

 

 

 

 

 

20,612

 

 

 

 

U.S. government securities

 

 

25,267

 

 

 

 

 

 

25,267

 

 

 

 

Total cash equivalents and marketable debt securities

$

99,484

 

 

$

82

 

$

99,402

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 October 31, 2024 and January 31, 2024, the carrying value of fixed deposit accounts was approximately $3.7 million and $7.0 million, respectively, which represented their fair value within level 1 hierarchy.

 

Interest income from financial instruments, including amortization of premiums and accretion of discounts, as well as realized gains and losses from available-for-sale securities, are recorded in other income, net, in the condensed consolidated statements of operations. For the three months ended October 31, 2024 and 2023, interest income and realized gains and losses, net, were approximately $2.1 million and $2.2 million, respectively. For the nine months ended October 31, 2024 and 2023, interest income and realized gains and losses, net, were approximately $6.6 million and $5.5 million, respectively.

 

The Company's non-marketable equity investments in privately-held companies are measured at cost, adjusted for subsequent observable price change or any impairment. Upon determining that an impairment or observable price change exists, the Company records any adjustment to the fair value through other income, net, in the condensed consolidated statements of operations. There was no significant change in the fair value and there was no impairment loss related to equity investment for the three and nine months ended October 31, 2024. There was approximately $1.2 million of impairment recognized for the three and nine months ended October 31, 2023. As of October 31, 2024 and January 31, 2024, the non-marketable equity investment was approximately $1.2 million, respectively, and recorded in other non-current assets in the condensed consolidated balance sheets.