Fair Value Measurements

12 Months Ended

Jan. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

We measure fair value based on a three-level hierarchy, maximizing the use of observable inputs, where available, and minimizing the use of unobservable inputs, as follows:

Level 1:Assets and liabilities whose values are based on observable inputs such as quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2:Assets and liabilities whose values are based on inputs from quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the asset or liability.

Level 3:Assets and liabilities whose values are based on unobservable inputs that are supported by little or no market activity and that are significant to the overall fair value measurement.

The following table summarizes the respective fair value and the classification by level within the fair value hierarchy (in thousands):

	As of January 31, 2022
	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents:
Money market funds	$	1,641,642	$	—	$	—	$	1,641,642
Short-term investments:
Certificates of deposit	—		375		—		375
Total assets measured and recorded at fair value	$	1,641,642	$	375	$	—	$	1,642,017

	As of January 31, 2021
	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents:
Money market funds	$	40,518	$	—	$	—	$	40,518
Short-term investments:
Certificates of deposit	—		364		—		364
Total assets measured and recorded at fair value	$	40,518	$	364	$	—	$	40,882

There were no transfers between the levels of the fair value hierarchy during fiscal 2022, 2021 and 2020.

As of January 31, 2022 and 2021, the aggregate fair value of our cash equivalents and short-term investments approximated amortized cost and, as such, there were no unrealized gains or losses, either individually or in the aggregate. As of January 31, 2022 and 2021, our cash and cash equivalents had contractual maturities of three months or less and short-term investments had contractual maturities within one year of each respective date.

The table above does not include our strategic investments in privately held equity securities, which are measured using the alternative measurement method. As of January 31, 2022, our non-marketable equity investments of $6.0 million was included in other assets on the consolidated balance sheets. We did not have any strategic investments as of January 31, 2021.