Leases

12 Months Ended

Apr. 30, 2024

The Company leases its facilities for office space under non-cancellable operating leases with various expiration dates through the fiscal year ending April 30, 2033. Certain lease agreements include options to renew or terminate the applicable lease, which are not reasonably certain to be exercised and therefore are not factored into the determination of lease payments.

On August 25, 2021, the Company entered into a new lease to acquire approximately 283,015 square feet of office space in several phases in Redwood City, California. The lease commencement date of the first two phases was determined to have occurred in the quarter ended January 31, 2022, when the landlord delivered the leased space to the Company. The lease commencement date of the third phase was determined to have occurred in the quarter ended October 31, 2022, when the landlord delivered the leased space to the Company. The lease commencement date of the fourth phase was determined to have occurred in the quarter ended April 30, 2023, when the landlord delivered the leased space to the Company. The lease commencement date of the fifth phase was determined to have occurred in the quarter ended July 31, 2023, when the landlord delivered the leased space to the Company. The Company recorded $1.6 million of lease liability in other long-term liabilities and corresponding right-of-use asset in other assets, non-current in the consolidated balance sheets related to the fifth phase of the lease. The lease commencement date of the sixth phase was determined to have occurred in the quarter ended January 31, 2024, when the landlord delivered the leased space to the Company. The Company recorded $1.7 million of lease liability in other long-term liabilities and corresponding right-of-use asset in other assets, non-current in the consolidated balance sheets related to the sixth phase of the lease. The lease commencement date of the seventh phase will be determined when the landlord delivers the applicable leased space to the Company.

The components of total lease costs, including variable lease costs, for the fiscal years ended April 30, 2024, 2023 and 2022 were as follows (in thousands):


	Fiscal Year Ended April 30,
Lease Costs	2024		2023		2022
Operating lease costs	$	4,995	$	8,359	$	5,587
Short term lease costs	1,537		1,624		1,538
Variable lease costs	3,959		3,494		1,892
Sublease income	(105)		(26)		—
Total lease costs, net	$	10,387	$	13,451	$	9,017

On February 21, 2023, the Company entered into a sublease agreement with First Virtual Group, Inc. (the “Subtenant”), whereby the Company agreed to sublease to the Subtenant approximately 3,130 square feet of space located in Redwood City, California. Refer to Note 12. Related Party Transactions for more information.

Variable lease costs are primarily related to payments made to the Company’s landlords for common area maintenance, property taxes, insurance, and other operating expenses. Short-term lease costs primarily represent payments related to marketing arrangements that contain embedded short-term leases of billboards. Supplemental cash flow information and non-cash activity related to leases was as follows (in thousands):


	Fiscal Year Ended April 30,
	2024		2023		2022

Cash payments included in the measurement of operating lease liabilities – operating cash flows	$	6,136	$	5,250	$	4,667

Right-of-use assets obtained in exchange for lease obligations (including remeasurement of right-of-use assets and lease liabilities due to changes in the timing of receipt of lease incentives)	$	1,833	$	(5,589)	$	26,529
Right-of-use assets obtained in exchange for lease obligations arising from lease modifications	$	—	$	3,093	$	1,572

The following table presents the lease balances within the consolidated balance sheets, weighted-average remaining lease term, and weighted-average discount rates related to the Company’s operating leases (in thousands):


		As of April 30,
Operating leases		2024		2023
Right-of-use assets	Other assets, non-current	$	18,664	$	17,572
Lease liabilities, current	Other current liabilities	3,226		2,339
Lease liabilities, non-current	Other long-term liabilities	55,599		37,320
Total operating lease liabilities		$	58,825	$	39,659


	As of April 30,
Operating leases	2024		2023
Weighted average remaining lease term (in years)	8.9		9.9
Weighted average discount rate	8.0	%	8.1	%

Future minimum payments under lease obligations as of April 30, 2024 were as follows (in thousands):


	As of April 30, 2024
Fiscal 2025	8,174
Fiscal 2026	9,337
Fiscal 2027	9,626
Fiscal 2028	9,922
Fiscal 2029 and thereafter	53,218
Total future minimum lease payments	90,277
Less: Tenant improvement allowance	(3,427)
Less: Imputed interest	(28,025)
Total operating lease liabilities	$	58,825