Cash and Cash Equivalents, Investments and Fair Value Measurements

9 Months Ended

Oct. 31, 2023

Cash and Cash Equivalents, Investments and Fair Value Measurements

CASH AND CASH EQUIVALENTS, INVESTMENTS, AND FAIR VALUE MEASUREMENTS

The following tables summarizes information about our cash, cash equivalents, and investments by investment category as of October 31, 2023 and January 31, 2023 (in thousands):


	As of October 31, 2023
	Fair Value Level	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Assets
Cash and cash equivalents:
Cash	Level 1	$	37,654	$	—	$	—	$	37,654
Money market funds	Level 1	76,323		—		—		76,323
U.S. Treasury securities	Level 1	6,418		—		—		6,418
Commercial paper	Level 2	6,946		—		(1)		6,945
Total cash and cash equivalents		$	127,341	$	—	$	(1)	$	127,340
Short-term investments:
U.S. Treasury securities	Level 1	$	249,557	$	—	$	(2,178)	$	247,379
Commercial paper	Level 2	40,884		—		(21)		40,863
Corporate notes and bonds	Level 2	237,430		—		(2,275)		235,155
U.S. agency securities	Level 2	148,302		—		(1,067)		147,235
Total short-term investments		$	676,173	$	—	$	(5,541)	$	670,632
Long-term investments:
U.S. Treasury securities	Level 1	$	61,514	$	2	$	(293)	$	61,223

Corporate notes and bonds	Level 2	123,215		—		(1,045)		122,170
U.S. agency securities	Level 2	129,659		—		(920)		128,739
Total long-term investments		$	314,388	$	2	$	(2,258)	$	312,132

Total assets measured at fair value		$	1,117,902	$	2	$	(7,800)	$	1,110,104


	As of January 31, 2023
	Fair Value Level	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Assets
Cash and cash equivalents:
Cash	Level 1	$	35,055	$	—	$	—	$	35,055
Money market funds	Level 1	102,886		—		—		102,886
Total cash and cash equivalents		$	137,941	$	—	$	—	$	137,941
Short-term investments:
U.S. Treasury securities	Level 1	$	144,392	$	1	$	(501)	$	143,892
Commercial paper	Level 2	230,305		30		(667)		229,668
Corporate notes and bonds	Level 2	38,443		15		(148)		38,310
U.S. agency securities	Level 2	74,060		3		(349)		73,714
Total short-term investments		$	487,200	$	49	$	(1,665)	$	485,584
Long-term investments:
U.S. Treasury securities	Level 1	$	192,337	$	—	$	(2,460)	$	189,877
Corporate notes and bonds	Level 2	233,946		178		(2,029)		232,095
U.S. agency securities	Level 2	101,844		27		(921)		100,950
Total long-term investments		$	528,127	$	205	$	(5,410)	$	522,922

Total assets measured at fair value		$	1,153,268	$	254	$	(7,075)	$	1,146,447

We invest in highly rated securities with a weighted average maturity of 18 months or less. As of October 31, 2023, all of our investments will mature within 2 years.

There were no transfers between the levels of the fair value hierarchy during the three and nine months ended October 31, 2023 and 2022.

As of October 31, 2023, we determined that the declines in the market value of our investment portfolio were not driven by credit related factors. During the three and nine months ended October 31, 2023 and 2022, we did not recognize any losses on our investments due to credit related factors. As of October 31, 2023, we had $4.3 million in continuous unrealized loss positions for more than twelve months on securities with a total fair value of $395.9 million.

The tables above do not include the Company’s strategic investments in non-marketable debt and equity securities, recorded at cost, less any impairment, plus or minus observable price changes in orderly transactions for identical or similar investments of the same issuer (the Measurement Alternative) and were $13.0 million and $12.5 million as of October 31, 2023 and January 31, 2023, respectively.

During the three and nine months ended October 31, 2023, the Company recognized impairment charges on its non-marketable strategic investments of $0.8 million. During the three and nine months ended October 31, 2023, the Company recognized realized gains of $1.5 million and $3.5 million, respectively on its non-marketable strategic investments. Impairment charges and realized gains on strategic investments were recognized in other income (expense), net. The fair value was estimated on a non-recurring basis based on Level 3 inputs.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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