Restructuring Activities

6 Months Ended

Jul. 31, 2023

Restructuring and Related Activities [Abstract]

On February 7, 2023, we announced a restructuring plan (the “Plan”) intended to reduce operating costs and continue advancing our ongoing commitment to profitable growth. The Plan included a reduction of our current workforce by approximately 15%.

For the three months ended July 31, 2023, we recorded net restructuring costs (benefits) of $(0.2) million, which consisted of $(0.4) million related to employee transition, severance payments, and employee benefits; and $0.2 million for other related expenses. For the six months ended July 31, 2023, we recorded net restructuring costs of $73.0 million, which consisted of $54.4 million related to employee transition, severance payments, and employee benefits; $17.3 million related to stock-based compensation awards; and $1.3 million for other related expenses. The execution of the Plan was completed as of July 31, 2023.

The following table summarizes our restructuring expenses that were recorded as an operating expense in the condensed consolidated statement of operations for the three and six months ended July 31, 2023:


	Three Months Ended July 31, 2023		Six Months Ended July 31, 2023
	(in thousands)
Cost of revenue	$	24	$	7,119
Research and development	327		19,629
Sales and marketing	(911)		32,930
General and administrative	373		13,315
Total restructuring expenses	$	(187)	$	72,993

The following table summarizes our restructuring liability that is included in accrued expenses and other current liabilities on the condensed consolidated balance sheet:


	Severance and termination benefits		Other
	(in thousands)
Balance as of January 31, 2023	$	—	$	—
Restructuring expenses	54,361		1,339
Cash payments	(54,361)		(1,339)
Balance as of July 31, 2023	$	—	$	—