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Cash, Cash Equivalents and Short-Term Investments
 3 Months Ended
Apr. 30, 2024
Cash and Cash Equivalents [Abstract]  
Cash, Cash Equivalents and Short-Term Investments
4. Cash, Cash Equivalents and Short-Term Investments
The following table summarizes the Company’s cash equivalents and short-term investments by category (in thousands):
As of April 30, 2024
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Level 1:
Cash equivalents (1)
    Money market funds$259,744 $— $— $259,744 
Level 2:
Cash equivalents (1)
    U.S. Treasury securities57,887 — (3)57,884 
    Commercial paper12,916 — (3)12,913 
Total cash equivalents330,547 — (6)330,541 
Short-term investments
    Commercial paper27,592 2 (17)27,577 
    Corporate debt securities212,399 30 (692)211,737 
    U.S. Agency securities48,848 — (153)48,695 
 U.S. Treasury securities353,904 — (740)353,164 
Total short-term investments642,743 32 (1,602)641,173 
Level 2 total713,546 32 (1,608)711,970 
Total cash equivalents and short-term investments$973,290 $32 $(1,608)$971,714 
(1) Included in “cash and cash equivalents” in our condensed consolidated balance sheet as of April 30, 2024, in addition to cash of $89.8 million.
As of January 31, 2024
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Level 1:
Cash equivalents (1)
    Money market funds$187,175 $— $— $187,175 
Level 2:
Cash equivalents (1)
    U.S. Treasury securities15,909 — (2)15,907 
    Commercial paper3,962 — (1)3,961 
Total cash equivalents207,046 — (3)207,043 
Short-term investments
    Commercial paper23,229 14 (1)23,242 
    Corporate debt securities231,219 740 (250)231,709 
    U.S. Agency securities56,324 29 (136)56,217 
    U.S. Treasury securities437,369 141 (389)437,121 
Total short-term investments748,141 924 (776)748,289 
Level 2 total768,012 924 (779)768,157 
Total cash equivalents and short-term investments$955,187 $924 $(779)$955,332 
(1) Included in “cash and cash equivalents” in our condensed consolidated balance sheet as of January 31, 2024, in addition to cash of $81.0 million.
The fair value of the Company’s Level 1 financial instruments, such as money market funds which are traded in active markets, is based on quoted market prices for identical instruments. The fair value of the Company’s Level 2 financial instruments such as commercial paper, corporate debt and U.S. government securities are obtained from an independent pricing service, which may use inputs other than quoted prices that are directly or indirectly observable in the market, including readily available pricing sources for the identical underlying security that may not be actively traded. The Company’s marketable securities are held by custodians who obtain investment prices from a third-party pricing provider that incorporates standard inputs in various asset price models.
The Company uses the specific-identification method to determine any realized gains or losses from the sale of the Company’s short-term investments classified as available-for-sale. For the three months ended April 30, 2024 and 2023, the Company did not have any material realized gains or losses as a result of maturities or sales of short-term investments.
During the three months ended April 30, 2024 and 2023, the Company recorded $12.0 million and $7.3 million of interest income on cash and cash equivalents and short-term investments, respectively, which includes $4.9 million and $3.6 million of net amortization of premiums or discounts on short-term investments during the three months ended April 30, 2024 and 2023, respectively.
The following table summarizes unrealized losses on the Company’s cash equivalents and short-term investments aggregated by category and the length of time such aggregated investments have been in a continuous unrealized loss position as of the periods presented (in thousands):
Less Than 12 Months12 Months or GreaterTotal
Carrying ValueGross Unrealized LossesCarrying ValueGross Unrealized LossesFair ValueGross Unrealized Losses
April 30, 2024
    U.S. Agency securities$36,247 $(113)$9,448 $(40)$45,695 $(153)
    Commercial paper37,421 (20)— — 37,421 (20)
    Corporate debt securities168,986 (675)13,195 (17)182,181 (692)
    U.S. Treasury securities392,924 (704)18,124 (39)411,048 (743)
Total cash equivalents and short-term investments$635,578 $(1,512)$40,767 $(96)$676,345 $(1,608)
Less Than 12 Months12 Months or GreaterTotal
Carrying ValueGross Unrealized LossesCarrying ValueGross Unrealized LossesFair ValueGross Unrealized Losses
January 31, 2024
    U.S. Agency securities$35,979 $(53)$11,386 $(83)$47,365 $(136)
    Commercial paper15,462 (2)— — 15,462 (2)
    Corporate debt securities85,998 (192)15,485 (58)101,483 (250)
    U.S. Treasury securities139,567 (192)41,193 (199)180,760 (391)
Total cash equivalents and short-term investments$277,006 $(439)$68,064 $(340)$345,070 $(779)
The following table classifies the Company’s short-term investments by contractual maturities (in thousands):
April 30, 2024January 31, 2024
Amortized costFair ValueAmortized costFair Value
Due within 1 year$500,465 $499,318 $619,286 $618,765 
Due between 1 year to 2 years142,278 141,855 128,855 129,524 
Total$642,743 $641,173 $748,141 $748,289 
All available-for-sale securities have been classified as current, based on management’s ability to use the funds in current operations.
Liabilities are measured at fair value on a recurring basis. The Company has contingent cash consideration from business acquisitions which is determined based upon the satisfaction of certain defined operational milestones and remeasured at fair value at each reporting period through earnings. As the fair value is based on unobservable inputs, the liability is included in Level 3 of the fair value measurement hierarchy.
The Company reassessed the fair value of outstanding operational milestones and there was no change during the three months ended April 30, 2024 and 2023. The Company had $3.7 million and $3.6 million of Level 3 contingent consideration as of April 30, 2024 and January 31, 2024, respectively. Interest accretion expense on contingent cash consideration was immaterial for the three months ended April 30, 2024 and 2023.