Financial Instruments and Fair Value

3 Months Ended

Apr. 30, 2019

Investments All Other Investments [Abstract]

2. Financial Instruments and Fair Value

The Company invests a portion of its cash in debt securities that are denominated in United States dollars. The investment portfolio consists of money market funds, certificates of deposit, asset-backed securities, commercial paper, U.S. government securities, and debt securities of corporations. 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, 2019
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Money market funds	$	10,501	$	—	$	—		$	10,501
Certificates of Deposit		1,006		—		—			1,006
Commercial paper		67,998		—		—			67,998
Corporate bonds		90,877		340		(9	)		91,208
Asset-backed securities		15,501		24		—			15,525
U.S. government securities		20,518		5		(9	)		20,514
Total cash equivalents and marketable debt securities	$	206,401	$	369	$	(18	)	$	206,752

	As of January 31, 2019
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Money market funds	$	8,914	$	—	$	—		$	8,914
Certificates of Deposit		7,012		—		—			7,012
Commercial paper		68,233		—		—			68,233
Corporate bonds		87,250		170		(60	)		87,360
Asset-backed securities		11,607		3		(6	)		11,604
U.S. government securities		21,993		3		(13	)		21,983
Total cash equivalents and marketable debt securities	$	205,009	$	176	$	(79	)	$	205,106

	As of
	April 30, 2019		January 31, 2019
	(in thousands)
Included in cash equivalents	$	45,020	$	40,245
Included in marketable debt securities		161,732		164,861
Total cash equivalents and marketable debt securities	$	206,752	$	205,106

The contractual maturities of the investments at April 30, 2019 and January 31, 2019 were as follows:

	As of
	April 30, 2019		January 31, 2019
	(in thousands)
Due within one year	$	155,140	$	151,991
Due within one to three years		51,612		53,115
Total cash equivalents and marketable debt securities	$	206,752	$	205,106

The unrealized 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. As the decline in market value was attributable to changes in market conditions and not credit quality, and because the Company neither intended to sell nor was it more likely than not that it will be required to sell these investments prior to a recovery of par value, the Company did not consider these investments to be other-than temporarily impaired as of April 30, 2019 and January 31, 2019, 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 and certificates of deposit using quoted prices in active markets for identical assets and classifies them within Level 1. The respective fair values 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 table presents the fair value of the financial instruments measured on a recurring basis as of April 30, 2019 and January 31, 2019:

	As of April 30, 2019
	Total		Level 1		Level 2		Level 3
	(in thousands)
Money market funds	$	10,501	$	10,501	$	—	$	—
Certificates of Deposit		1,006		1,006		—		—
Commercial paper		67,998		—		67,998		—
Corporate bonds		91,208		—		91,208		—
Asset-backed securities		15,525		—		15,525		—
U.S. government securities		20,514		—		20,514		—
Total cash equivalents and marketable debt securities	$	206,752	$	11,507	$	195,245	$	—

	As of January 31, 2019
	Total		Level 1		Level 2		Level 3
	(in thousands)
Money market funds	$	8,914	$	8,914	$	—	$	—
Certificates of Deposit		7,012		7,012		—		—
Commercial paper		68,233		—		68,233		—
Corporate bonds		87,360		—		87,360		—
Asset-backed securities		11,604		—		11,604		—
U.S. government securities		21,983		—		21,983		—
Total cash equivalents and marketable debt securities	$	205,106	$	15,926	$	189,180	$	—