Fair Value Measurements

12 Months Ended

Jan. 31, 2024

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 information about our cash, cash equivalents, and investments by investment category for the periods presented (in thousands):


	As of January 31, 2024
	Fair Value Level	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Assets
Cash and cash equivalents:
Cash		$	43,925	$	—	$	—	$	43,925
Money market funds	Level 1	204,481		—		—		204,481
Certificates of deposit	Level 2	8,245		—		—		8,245


Total cash and cash equivalents		$	256,651	$	—	$	—	$	256,651
Short-term investments:
US Treasury securities	Level 1	$	234,776	$	—	$	(1,053)	$	233,723

Corporate notes and bonds	Level 2	279,248		12		(1,068)		278,192
US agency securities	Level 2	157,873		18		(501)		157,390
Total short-term investments		$	671,897	$	30	$	(2,622)	$	669,305
Long-term investments:
US Treasury securities	Level 1	$	27,175	$	121	$	—	$	27,296

Corporate notes and bonds	Level 2	69,970		279		(67)		70,182
US agency securities	Level 2	90,924		303		(48)		91,179
Total long-term investments		$	188,069	$	703	$	(115)	$	188,657

Total assets measured at fair value		$	1,116,617	$	733	$	(2,737)	$	1,114,613


	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		$	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:
US 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
US agency securities	Level 2	74,060		3		(349)		73,714
Total short-term investments		$	487,200	$	49	$	(1,665)	$	485,584
Long-term investments:
US Treasury securities	Level 1	$	192,337	$	—	$	(2,460)	$	189,877

Corporate notes and bonds	Level 2	233,946		178		(2,029)		232,095
US 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

There were no transfers between the levels of the fair value hierarchy during fiscal 2024, 2023 and 2022. As of January 31, 2024, all of our investments will mature within two years.

As of January 31, 2024, we determined that the declines in the market value of our investment portfolio were not driven by credit related factors. During the years ended January 31, 2024 and 2023, we did not recognize any losses on our investments due to credit related factors. As of January 31, 2024, we had $2.1 million in continuous unrealized loss positions for more than twelve months on securities with a total fair value of $437.2 million.

The tables above do not include the Company’s strategic investments in non-marketable debt and equity securities, which are recorded at cost, less any impairment, plus or minus observable price changes in orderly transactions for identical or similar investments of the same issuer (measurement alternative) and were $16.1 million and $12.5 million as of January 31, 2024 and 2023, respectively.

During the year ended January 31, 2024, the Company recognized impairment charges on its non-marketable strategic investments of $0.8 million. During the year ended January 31, 2024, the Company recognized realized gains of $3.5 million 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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