Fair Value Measurements

9 Months Ended

Oct. 31, 2017

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The following tables present information about the Company’s financial assets and liabilities that have been measured at fair value on a recurring basis as of October 31, 2017 and January 31, 2017, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands):

	Fair Value Measurement at October 31, 2017
	Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and cash equivalents:
Money market funds	$	225,756	$	—	$	—	$	225,756
Short-term investments:
U.S. government treasury securities	45,810		—		—		45,810
Total financial assets	$	271,566	$	—	$	—	$	271,566

	Fair Value Measurement at January 31, 2017
	Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and cash equivalents:
Money market funds	$	35,104	$	—	$	—	$	35,104
U.S. government treasury securities	20,000						20,000
Short-term investments:
U.S. government treasury securities	47,195		—		—		47,195
Total financial assets	$	102,299	$	—	$	—	$	102,299
Financial Liability:
Redeemable convertible preferred stock warrant liability	$	—	$	—	$	1,272	$	1,272
Total financial liability	$	—	$	—	$	1,272	$	1,272

The Company utilized the market approach and Level 1 valuation inputs to value its money market mutual funds and U.S. government treasury securities because published net asset values were readily available. As of October 31, 2017 and January 31, 2017, gross unrealized gains and unrealized losses for cash equivalents and short-term investments were not material, and the contractual maturity of all marketable securities was less than one year.

The Company’s redeemable convertible preferred stock warrants were categorized as Level 3 because they were valued based on unobservable inputs and management’s judgment due to the absence of quoted mark prices, inherent lack of liquidity and the long-term nature of such financial instruments. The Company estimated the fair value of its historical redeemable convertible preferred stock warrant liability using the Black-Scholes pricing model. The significant unobservable inputs used in the fair value measurement of the redeemable convertible preferred stock warrant liability were the fair value of the underlying stock at the valuation date and the estimated term of the warrant. Generally, increases (decreases) in the fair value of the underlying stock and estimated term resulted in a directionally similar impact to the fair value measurement, as recognized in other income (expense), net in the unaudited condensed consolidated statements of operations. As of October 31, 2017, all previously outstanding redeemable convertible preferred stock warrants were fully exercised, as described in Note 6, Warrants.

The following table presents a reconciliation of the redeemable convertible preferred stock warrant liability measured at fair value using significant unobservable inputs (in thousands):

Fair value, beginning balance, January 31, 2017	$	1,272
Issuance of redeemable convertible preferred stock warrants	—
Conversion of redeemable convertible preferred stock warrant liability into redeemable convertible preferred stock	(1,171		)
Change in fair value of redeemable convertible preferred stock warrant liability	(101		)
Fair value, ending balance, October 31, 2017	$	—