Fair Value of Financial Instruments

6 Months Ended

Jul. 31, 2025

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Note 3. Fair Value of Financial Instruments

Fair Value Measurements of Assets and Liabilities Measured at Fair Value on a Recurring Basis

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. There were no level 3 financial assets or liabilities for the periods presented.

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

	July 31, 2025
	Level 1		Level 2			Total
Cash equivalents:
Money market funds	$	166,420	$	—		$	166,420
Total cash equivalents		166,420		—			166,420
Short-term investments:
U.S. treasury securities		100,032		—			100,032
Total short-term investments		100,032		—			100,032
Other current assets:
Forward contracts designated as cash flow hedges		—		4,312			4,312
Forward contracts not designated as cash flow hedges		—		2,869			2,869
Total other current assets		—		7,181			7,181
Other non-current assets:
Forward contracts designated as cash flow hedges		—		48			48
Total non-current assets		—		48			48
Total assets	$	266,452	$	7,229		$	273,681
Other current liabilities:
Forward contracts designated as cash flow hedges	$	—	$	(382	)	$	(382	)
Forward contracts not designated as cash flow hedges		—		(122	)		(122	)
Total current liabilities		—		(504	)		(504	)
Other non-current liabilities:
Forward contracts designated as cash flow hedges		—		(26	)		(26	)
Total non-current liabilities		—		(26	)		(26	)
Total liabilities	$	—	$	(530	)	$	(530	)

	January 31, 2025
	Level 1		Level 2		Total
Cash equivalents:
Money market funds	$	188,307	$	—	$	188,307
Total cash equivalents		188,307		—		188,307
Short-term investments:
U.S. treasury securities		98,241		—		98,241
Total short-term investments		98,241		—		98,241
Total cash equivalents and short-term investments	$	286,548	$	—	$	286,548

As of January 31, 2025, forward contracts in total assets and total liabilities were not material.

There were no material differences between the estimated fair value and amortized cost of our cash equivalents and short-term investments.

As of July 31, 2025, remaining contractual maturities of our cash equivalents and short-term investments were all within one year and we do not consider any portion of the unrealized losses to be credit losses.

Fair Value Measurements of Other Financial Instruments

In September 2024, we issued $460.0 million aggregate principal amount of 1.50% convertible senior notes due September 15, 2029 (the “2029 Convertible Notes”). In January 2021, we issued $345.0 million aggregate principal amount of 0.00% convertible senior notes due January 15, 2026 (the “2026 Convertible Notes” and together with the 2029 Convertible Notes, the “Convertible Notes”). Using the proceeds from the issuance of the 2029 Convertible Notes, we entered into separate and privately negotiated transactions with certain holders of the 2026 Convertible Notes to repurchase $140.0 million aggregate principal amount of the 2026 Convertible Notes, which were completed simultaneously with the new convertible debt offering. The estimated fair values of the Convertible Notes, which we have classified as Level 2 financial instruments, were determined using observable market prices. As of July 31, 2025, the estimated fair value of the 2029 Convertible Notes and 2026 Convertible Notes was $463.0 million and $263.2

million, respectively, and as of January 31, 2025, the estimated fair value of the 2029 Convertible Notes and 2026 Convertible Notes was $458.1 million and $260.2 million, respectively.