Operating Leases

12 Months Ended

Jan. 31, 2024

Leases [Abstract]

Operating Leases

Operating Leases

We have entered into various operating lease agreements for office space, with remaining contractual periods of up to five years. We also enter into equipment operating lease agreements related to our Hardware-as-a-Service (“HaaS”) offering. We elect to apply the lessor practical expedient per ASC 842 and account for HaaS with customers as a combined performance obligation with the right to access our unified communications and collaboration platform under ASC 606, Revenue from Contracts with Customers. HaaS was immaterial to our consolidated financial statements. Many of our leases contain one or more options to extend. As leases approach maturity, we consider various factors such as market conditions and the terms of any renewal options that may exist to determine whether we are reasonably certain to exercise the options to extend the lease. Operating lease expense for the fiscal years ended January 31, 2024, 2023 and 2022 was $24.9 million, $32.7 million and $22.8 million, respectively, excluding short-term lease costs, variable lease costs, and sublease income, each of which was immaterial for the fiscal years ended January 31, 2024, 2023 and 2022.

Supplemental balance sheet information related to operating leases was as follows:

	As of January 31,
	2024			2023
	(in thousands, except life and percentages)
Reported as:
Assets:
Operating lease right-of-use assets	$	58,975		$	80,906
Liabilities:
Accrued expenses and other current liabilities	$	24,645		$	22,790
Operating lease liabilities, noncurrent	48,308			73,687
Total operating lease liabilities	$	72,953		$	96,477
Weighted average remaining lease term	3.7 years			4.3 years
Weighted average discount rate	4.1		%	3.8		%

Supplemental cash flow and other information related to operating leases was as follows:

	Year Ended January 31,
	2024		2023		2022
	(in thousands)
Cash payments included in the measurement of our operating lease liabilities	$	26,471	$	27,120	$	22,679
Operating lease right-of-use assets recognized in exchange for new operating lease obligations	$	—	$	13,857	$	16,784

As of January 31, 2024, the future minimum lease payments included in the measurement of our operating lease liabilities are as follows:

	As of January 31, 2024
	(in thousands)
Year Ending January 31,
2025	$	26,922
2026	22,063
2027	13,342
2028	8,137
2029	7,330
Thereafter	617
Total operating lease payments	$	78,411
Less: imputed interest	(5,458)
Total operating lease liabilities	$	72,953