Fair Value of Financial Instruments

3 Months Ended

Apr. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Note 3. Fair Value of Financial Instruments

The amortized cost, unrealized gain (loss) and estimated fair value of marketable securities were as follows (in thousands):

	April 30, 2022
	Amortized Cost		Unrealized Gain		Unrealized Loss			Estimated Fair Value
Cash equivalents:
U.S treasury securities	$	9,999	$	—	$	—		$	9,999
Commercial paper		1,999		—		—			1,999
Money market funds		166,263		—		—			166,263
Total cash equivalents	$	178,261	$	—	$	—		$	178,261
Short-term investments:
U.S treasury securities	$	35,921	$	—	$	(24	)	$	35,897
Commercial paper		1,992		—		—			1,992
Total short-term investments	$	37,913	$	—	$	(24	)	$	37,889
Total cash equivalents and short-term investments	$	216,174	$	—	$	(24	)	$	216,150

	January 31, 2022
	Amortized Cost		Unrealized Gain		Unrealized Loss		Estimated Fair Value
Cash equivalents:
Money market funds	$	202,446	$	—	$	—	$	202,446
Total cash equivalents	$	202,446	$	—	$	—	$	202,446

As of April 30, 2022, contractual maturities of marketable securities were all within one year.

As of April 30, 2022, we do not consider any portion of the unrealized losses to be credit losses.

Fair Value Measurements

We measure our financial assets and liabilities at fair value at each reporting period using a fair value hierarchy which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. We define fair value as the exchange price that would be received from selling an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value:

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

•Level 2—Observable inputs are quoted prices for similar assets and liabilities in active markets or inputs other than quoted prices which 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 that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. These inputs are based on our own assumptions used to measure assets and liabilities at fair value and require significant management judgment or estimation.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Financial assets subject to the fair value disclosure requirements were as follows (in thousands):

	April 30, 2022
	Level 1		Level 2		Level 3		Total
Cash equivalents:
U.S treasury securities	$	9,999	$	—	$	—	$	9,999
Commercial paper		—		1,999		—		1,999
Money market funds		166,263		—		—		166,263
Total cash equivalents	$	176,262	$	1,999	$	—	$	178,261
Short-term investments:
U.S treasury securities	$	35,897	$	—	$	—	$	35,897
Commercial paper		—		1,992		—		1,992
Total short-term investments	$	35,897	$	1,992	$	—	$	37,889
Total cash equivalents and short-term investments	$	212,159	$	3,991	$	—	$	216,150

	January 31, 2022
	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	202,446	$	—	$	—	$	202,446

As of April 30, 2022 and January 31, 2022, we had certificates of deposit for a total of $90 million and $170 million, respectively, with original maturities of more than three months and less than twelve months that are classified as short-term investments in our consolidated balance sheet.

Fair Value Measurements of Other Financial Instruments

In November 2017, we entered into a secured credit agreement (as amended or otherwise modified from time to time, the “November 2017 Facility”). As of April 30, 2022 and January 31, 2022, we had total debt outstanding relating to the November 2017 Facility with a carrying amount of $30.0 million. The estimated fair value of the November 2017 Facility, which we have classified as a Level 2 financial instrument, approximates its carrying value.

In January 2021, we issued $345.0 million aggregate principal amount of 0.00% convertible senior notes due January 15, 2026 (the “Notes”). The fair value of the Notes is determined using observable market prices. The fair value of the Notes, which we have classified as a Level 2 instrument, was $458.6 million and $413.1 million as of April 30, 2022 and January 31, 2022, respectively.