Fair Value Measurements

9 Months Ended

Oct. 31, 2017

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The Company measures its financial assets at fair value each reporting period using a fair value hierarchy that prioritizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Three levels of inputs may be used to measure as follows:

Level 1-Valuations based on observable inputs that reflect quoted prices for identical assets or liabilities in active markets.

Level 2-Valuations based on inputs that are directly or indirectly observable in the marketplace.

Level 3-Valuations based on unobservable inputs that are supported by little or no market activity.

The following table presents information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis using the above input categories (in thousands):

	As of October 31, 2017
	(unaudited)
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	115,939	$	—	$	—	$	115,939
Total cash equivalents	$	115,939	$	—	$	—	$	115,939
Short-term investments:
Commercial paper	$	—	$	16,973	$	—	$	16,973
U.S. treasury securities	—		46,513		—		46,513
Corporate debt securities	—		22,557		—		22,557
Total short-term investments	—		86,043		—		86,043
Total cash equivalents and short-term investments	$	115,939	$	86,043	$	—	$	201,982

	As of January 31, 2017
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	10,565	$	—	$	—	$	10,565
Total cash equivalents	$	10,565	$	—	$	—	$	10,565
Short-term investments:
Asset-backed securities	$	—	$	1,538	$	—	$	1,538
Corporate debt securities	—		12,852		—		12,852
Total short-term investments	—		14,390		—		14,390
Total cash equivalents and short-term investments	$	10,565	$	14,390	$	—	$	24,955
Liabilities:
Series B redeemable convertible preferred stock warrant	$	—	$	—	$	304	$	304

Level 3 instruments consist solely of the Company’s Series B redeemable convertible preferred stock warrant liability. During the three months ended April 30, 2017, the Series B redeemable convertible preferred stock warrant liability that was outstanding as of January 31, 2017 was exercised. The corresponding warrant liability was remeasured to fair value and reclassified to additional paid-in capital. The expense resulting from remeasurement was recognized in other income, net in the condensed consolidated statements of operations.

The change in the fair value of the Series B redeemable convertible preferred stock warrant liability was as follows (in thousands):

Balance at January 31, 2017	$	304
Increase in fair value of warrant through exercise date	103
Reclassification of remaining warrant liability to additional paid-in capital	(407		)
Balance at October 31, 2017	$	—

The Company had no transfers between levels of the fair value hierarchy of its assets measured at fair value.

The carrying amounts of certain financial instruments, including cash held in banks, accounts receivable, accounts payable and the financing arrangements (see Note 7) approximate fair value due to their short-term maturities and are excluded from the fair value table above.