Investments

9 Months Ended

Oct. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

As of October 31, 2021 and January 31, 2021, our marketable securities consisted of the following:


	As of October 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

	(in thousands)





Commercial paper	$	23,482	$	—	$	—	$	23,482
Agency bonds	437,782		13		(342)		437,453
Corporate and other debt securities	314,888		56		(423)		314,521
U.S. government agency securities	3,000,441		17		(4,413)		2,996,045
Treasury bills	324,046		—		(27)		324,019
Marketable securities	$	4,100,639	$	86	$	(5,205)	$	4,095,520


	As of January 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

	(in thousands)


Commercial paper	$	26,222	$	—	$	—	$	26,222
Agency bonds	461,335		79		(49)		461,365
Corporate and other debt securities	465,207		1,113		(64)		466,256
U.S. government agency securities	834,894		28		(257)		834,665
Treasury bills	215,902		6		(6)		215,902
Marketable securities	$	2,003,560	$	1,226	$	(376)	$	2,004,410

We review the individual securities that have unrealized losses on a regular basis to evaluate whether or not any security has experienced, or is expected to experience, credit losses resulting in the decline in fair value. We evaluate, among other factors, whether we have the intention to sell any of these marketable securities and whether it is more likely than not that we will be required to sell any of them before recovery of the amortized cost basis. We have not recorded an allowance for credit losses, as we believe any such losses would be immaterial based on the high-grade credit rating for each of our marketable securities as of the end of each period. There were no material realized gains or losses from available-for-sale securities that were reclassified out of accumulated other comprehensive income (loss) for the three and nine months ended October 31, 2021 and 2020.

The following table presents the contractual maturities of our marketable securities as of October 31, 2021 and January 31, 2021:


	As of
	October 31, 2021		January 31, 2021

	(in thousands)
Less than one year	$	2,143,667	$	1,017,048
Due in one to five years	1,951,853		987,362
Total	$	4,095,520	$	2,004,410

Strategic Investments

Strategic investments by form and measurement category as of October 31, 2021 were as follows:


	Measurement Category
	Fair Value		Measurement Alternative		Equity Method		Total

	(in thousands)
Equity securities	$	179,918	$	13,349	$	93,117	$	286,384
Debt securities	13,366		—		—		13,366
Strategic investments	$	193,284	$	13,349	$	93,117	$	299,750

Strategic investments by form and measurement category as of January 31, 2021 were as follows:


	Measurement Category
	Fair Value		Measurement Alternative		Equity Method		Total

	(in thousands)
Equity securities	$	—	$	13,538	$	—	$	13,538
Debt securities	5,130		—		—		5,130
Strategic investments	$	5,130	$	13,538	$	—	$	18,668

In the second quarter of fiscal year 2022, we made a $75.0 million strategic investment of common shares of a technology company in a private placement concurrent with the investee company’s initial public offering. The shares are subject to a 180-day lock-up agreement. We recorded a gain of $72.8 million and $104.9 million related to this investment in the three and nine months ended October 31, 2021, respectively. As of October 31, 2021, the fair value of the investment was $179.9 million and our ownership interest represents approximately one percent of the economic interest of the investee’s outstanding capital stock.

In the third quarter of fiscal year 2022, we made an additional strategic investment in equity securities of a private company. Based on the terms of these privately-held securities, we determined that we currently do not have a controlling interest but have the ability to exercise significant influence over the operating and financial policies of the investee. Therefore this investment is currently accounted for under the equity method. The fair value of the investment was remeasured immediately before adopting the equity method of accounting, based on the observable price from the most recent financing round. The carrying value of this investment was also adjusted by our share of the equity method investee’s operating result for the respective period, which was immaterial for the three months ended October 31, 2021. As a result, we recognized a total gain of $49.6 million on the existing investment during the three months ended October 31, 2021. As of October 31, 2021, the carrying amount of this investment was $93.1 million.