Leases

12 Months Ended

Jan. 31, 2023

The Company leases office space under non-cancelable operating leases with various expiration dates through 2027. These leases require monthly lease payments that may be subject to annual increases throughout the lease term.

Components of lease expense are summarized as follows (in thousands):


	Year Ended January 31,
	2021		2022		2023
Operating lease expense	$	5,748	$	6,451	$	7,042
Short-term lease expense	2,266		1,263		1,274
Total lease expense	$	8,014	$	7,714	$	8,316

Lease term and discount rate information are summarized as follows:


			As of January 31, 2023
Weighted average remaining lease term (years)			4.0
Weighted average discount rate			10.0%

Maturities of lease liabilities as of January 31, 2023 were as follows (in thousands):


Year Ending January 31:
2024(1)	$	6,599
2025	5,701
2026	5,203
2027	5,343
2028	1,797

Total lease payments	24,643
Less imputed interest	(4,467)
Present value of lease liabilities	$	20,176

(1)Net of $0.6 million of tenant improvements which are expected to be utilized in fiscal 2024.

Cash paid for operating leases was $4.8 million, $5.2 million and $6.5 million during the years ended January 31, 2021, 2022 and 2023, respectively, and was included in net cash used in operating activities in the consolidated statements of cash flows.

In November 2020, the Company entered into an agreement to lease office space from its current landlord. The lease term commenced on May 1, 2021 and is for a period of approximately six years, with rent payments over the term of the lease totaling approximately $23.8 million. At the lease commencement date, the Company classified the lease as an operating lease and recorded a lease liability of $13.6 million with a corresponding right-of-use asset.

In January 2023, the Company recorded an impairment of $1.8 million and $0.4 million to its ROU assets and related leasehold improvements, respectively, due to increased construction costs for one of its leases. The impairment charges are included in the accompanying consolidated statements of operations. The Company estimated the fair value using a discounted cash flows approach reflecting internally developed Level 3 assumptions.