Business Combination

6 Months Ended

Jul. 31, 2023

Business Combination and Asset Acquisition [Abstract]

Business Combination

7. Business Combination

On December 3, 2021, the Company completed the acquisition of Opstrace, Inc., a technology company based in San Francisco, California.

The transaction was accounted for as a business combination. The acquisition date fair value of the consideration transferred was $13.5 million, which included contingent cash consideration.

As of January 31, 2023, the Company held $2.5 million in an escrow as partial security for post-closing indemnification claims made within 18 months of the closing date. The Company fully paid this acquisition-related holdback during the three months ended July 31, 2023.

In September 2022, one of the operational milestones was achieved and the Company paid $4.2 million of contingent cash consideration. The remaining contingent cash consideration is determined based upon the satisfaction of certain defined operational milestones and remeasured at fair value at each reporting period through earnings. During the three and six months ended July 31, 2023 and 2022, the Company did not record any changes to the fair value of the contingent cash consideration. As the fair value is based on unobservable inputs, the liability is included in Level 3 of the fair value measurement hierarchy. As of July 31, 2023 and January 31, 2023, the Company had recorded $3.5 million of remaining contingent cash consideration which is included in other long term liabilities on the respective condensed consolidated balance sheets.

Accretion expense was immaterial and $0.1 million for the three and six months ended July 31, 2023, respectively, and $0.1 million and $0.2 million for the three and six months ended July 31, 2022, respectively.