Goodwill and Acquired Intangible Assets, Net

12 Months Ended

Jan. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Acquired Intangible Assets, Net

The following table summarizes the changes in the carrying amount of goodwill during the periods presented (in thousands):


	January 31, 2022		January 31, 2021
Balance, beginning of the year	$	55,830	$	55,830
Increase in goodwill related to business combinations	1,945		—
Balance, end of the year	$	57,775	$	55,830

In April 2021, the Company made an acquisition for total cash consideration of $9.0 million, of which $4.5 million was the purchase price to be allocated and $4.5 million will be recognized as post-combination compensation expense. For accounting purposes, this business combination was deemed immaterial. The Company allocated $3.4 million to the acquired developed technology intangible asset based on fair value to be amortized over its economic useful life of five years. The Company also recorded $1.9 million of goodwill, which included a tax benefit associated with the acquisition due to the release of the valuation allowance of $0.8 million.

The gross carrying amount and accumulated amortization of the Company’s intangible assets are as follows (in thousands):


	January 31, 2022
	Gross Carrying Value		Accumulated Amortization		Net Book Value		Weighted-Average Remaining Useful Life (in years)
Developed technology	$	38,100	$	(22,982)	$	15,118	2.6
Customer relationships	15,200		(9,710)		5,490		1.8
Total	$	53,300	$	(32,692)	$	20,608


	January 31, 2021
	Gross Carrying Value		Accumulated Amortization		Net Book Value		Weighted-Average Remaining Useful Life (in years)
Developed technology	$	34,700	$	(16,955)	$	17,745	3.3
Customer relationships	15,200		(6,670)		8,530		2.8
Total	$	49,900	$	(23,625)	$	26,275

Acquired intangible assets are amortized on a straight-line basis. Amortization expense of intangible assets was $9.1 million, $8.5 million and $10.1 million for the years ended January 31, 2022, 2021 and 2020, respectively. Amortization expense for developed technology was included as research and development expense in the Company’s consolidated statements of operations. Amortization expense for customer relationships was included as sales and marketing expense in the Company’s consolidated statements of operations.

As of January 31, 2022, future amortization expense related to the intangible assets is as follows (in thousands):


Years Ending January 31,
2023	$	9,180
2024	8,505
2025	2,130
2026	680
2027	113
Total	$	20,608