Cash Equivalents and Short-term Investments

9 Months Ended

Oct. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Cash Equivalents and Short-term Investments

The amortized cost, unrealized gain (loss) and estimated fair value of the Company’s cash equivalents and short-term investments as of October 31, 2020 and January 31, 2020 were as follows (in thousands):


	As of October 31, 2020
	Amortized Cost		Unrealized Gain		Unrealized Loss		Estimated Fair Value
	(unaudited)
Cash equivalents:
Money market funds	$	335,592	$	—	$	—	$	335,592



Total cash equivalents	335,592		—		—		335,592
Short-term investments:


U.S. treasury securities	1,795,309		1,978		(130)		1,797,157
Corporate debt securities	287,523		722		(29)		288,216
Total short-term investments	2,082,832		2,700		(159)		2,085,373
Total	$	2,418,424	$	2,700	$	(159)	$	2,420,965


	As of January 31, 2020
	Amortized Cost		Unrealized Gain		Unrealized Loss		Estimated Fair Value
Cash equivalents:
Money market funds	$	416,584	$	—	$	—	$	416,584

U.S. treasury securities	19,996		—		—		19,996

Total cash equivalents	436,580		—		—		436,580
Short-term investments:


U.S. treasury securities	575,920		686		(8)		576,598
Corporate debt securities	305,859		519		—		306,378
Total short-term investments	881,779		1,205		(8)		882,976
Total	$	1,318,359	$	1,205	$	(8)	$	1,319,556

All short-term investments were designated as available-for-sale securities as of October 31, 2020 and January 31, 2020.

The following table presents the contractual maturities of the Company’s short-term investments as of October 31, 2020 (in thousands):


	As of October 31, 2020
	Amortized Cost		Estimated Fair Value
	(unaudited)
Due within one year	$	1,285,936	$	1,288,279
Due between one to five years	796,896		797,094
Total	$	2,082,832	$	2,085,373

As of October 31, 2020 and January 31, 2020, the Company included $41.0 million and nil, respectively, of unsettled maturities of Short-term investments in Prepaid expenses and other current assets.

The Company included $10.9 million and $5.7 million of interest receivable in Prepaid expenses and other current assets as of October 31, 2020 and January 31, 2020, respectively. The Company did not recognize an allowance for credit losses against interest receivable as of October 31, 2020 and January 31, 2020 because such potential losses were not material.

The Company had 62 and 7 short-term investments in unrealized loss positions as of October 31, 2020 and January 31, 2020, respectively. There were no material gross unrealized gains or losses from available-for-sale securities and no material realized gains or losses from available-for-sale securities that were reclassified out of accumulated other comprehensive income for the three and nine months ended October 31, 2020 or 2019.

For available-for-sale debt securities that have unrealized losses, the Company evaluates whether (i) the Company has the intention to sell any of these investments, (ii) it is not more likely than not that the Company will be required to sell any of these available-for-sale debt securities before recovery of the entire amortized cost basis and (iii) the decline in the fair value of the investment is due to credit or non-credit related factors. Based on this evaluation, the Company determined that for short-term investments, there were no material credit or non-credit related impairments as of October 31, 2020 and January 31, 2020.