Fair Value Measurements

3 Months Ended

Apr. 30, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 4. Fair Value Measurements

The accounting guidance for fair value measurements establishes a three-tier hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows:

Level input	Input definition
Level 1	Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets
Level 2	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability through corroboration with market data at the measurement date
Level 3	Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date

In general, and where applicable, the Company uses quoted prices in active markets for identical assets or liabilities to determine fair value. If quoted prices in active markets for identical assets or liabilities are not available to determine fair value, then the Company uses quoted prices for similar assets and liabilities or inputs other than the quoted prices that are observable either directly or indirectly.

The following tables summarize the Company’s fair value hierarchy for its financial assets measured at fair value on a recurring basis (in thousands):

	April 30, 2020
	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	64,868	$	—	$	—	$	64,868
Short-term investments:
U.S. government securities	$	—	$	22,177	$	—	$	22,177
Corporate bonds	—		41,691		—		41,691
Commercial paper	—		24,030		—		24,030
Total short-term investments	$	—	$	87,898	$	—	$	87,898

	January 31, 2020
	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	37,906	$	—	$	—	$	37,906
Short-term investments:
U.S. government securities	$	—	$	34,094	$	—	$	34,094
Corporate bonds	—		45,682		—		45,682
Commercial paper	—		37,886		—		37,886
Total short-term investments	$	—	$	117,662	$	—	$	117,662

The carrying amounts of certain financial instruments, including cash held in bank accounts, accounts receivable, accounts payable, and accrued expenses, approximate fair value due to their relatively short maturities. The carrying amount of debt approximates fair value due to its floating interest rate.