Leases

9 Months Ended

Oct. 31, 2024

Note 4. Leases

We have entered into various non-cancellable operating lease agreements for certain of our offices and data centers with lease periods expiring primarily between fiscal years 2026 and 2034. Certain of these arrangements have free or escalating rent payment provisions and optional renewal or termination clauses. Our operating leases typically include variable lease payments, which are primarily comprised of common area maintenance and utility charges for our offices and power and network connections for our data centers, that are determined based on actual consumption. Our operating lease agreements do not contain any residual value guarantees, covenants, or other restrictions.

We have also entered into various finance lease arrangements to obtain servers and related equipment for our data center operations. These agreements are primarily for four years and certain of these arrangements have optional renewal or termination clauses. The leases are secured by the underlying leased servers and related equipment. During fiscal year 2023, we modified our finance leases to reflect our intent to exercise the purchase options at the end of the term of each finance lease. As of January 31, 2024, there were no remaining material finance lease liabilities.

We sublease certain floors of our Redwood City and London offices. Our current subleases have total lease terms ranging from 13 to 48 months that will expire at various dates by fiscal year 2029.

The components of lease cost, which were included in operating expenses in our condensed consolidated statements of operations, were as follows (in thousands):


	Three Months Ended						Nine Months Ended
	October 31,						October 31,
	2024			2023			2024			2023
Finance lease cost:
Amortization of finance lease right-of-use assets	$	—		$	8,528		$	374		$	20,342
Interest on finance lease liabilities		—			102			12			729
Operating lease cost, gross		6,414			12,257			23,158			37,650
Variable lease cost, gross		1,867			2,228			5,347			6,883
Sublease income		(1,427	)		(1,673	)		(4,362	)		(5,044	)
Total lease cost	$	6,854		$	21,442		$	24,529		$	60,560

As of October 31, 2024, maturities of our operating lease liabilities, which do not include short-term leases and variable lease payments, are as follows (in thousands):


Years ending January 31:	Operating Leases (1)
2025	$	8,004
2026		30,392
2027		28,842
2028		25,193
2029		12,101
Thereafter		10,933
Total lease payments	$	115,465
Less: imputed interest	$	(13,883	)
Present value of total lease liabilities	$	101,582

(1)

Non-cancellable sublease proceeds for the remainder of the year ending January 31, 2025 and the years ending January 31, 2026, 2027, 2028 and 2029 of $0.9 million, $2.6 million, $2.2 million, $2.2 million, and $0.6 million, respectively, are not included in the table above.

As of October 31, 2024, we had one operating lease for an office space that has not yet commenced. This operating lease has aggregated undiscounted future payments of $20.0 million and a lease term of nine years. This operating lease is estimated to commence during fiscal year 2026.