Cash Equivalents and Investments

6 Months Ended

Jul. 31, 2022

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 July 31, 2022 and January 31, 2022 were as follows (in thousands):


	As of July 31, 2022
	Amortized Cost		Unrealized Gain		Unrealized Loss		Estimated Fair Value
	(unaudited)
Cash equivalents:
Money market funds	$	78,012	$	—	$	—	$	78,012



Total cash equivalents	78,012		—		—		78,012
Short-term investments:


U.S. treasury securities	2,022,707		85		(26,952)		1,995,840
Corporate debt securities	268,685		—		(3,569)		265,116
Total short-term investments	2,291,392		85		(30,521)		2,260,956
Total	$	2,369,404	$	85	$	(30,521)	$	2,338,968


	As of January 31, 2022
	Amortized Cost		Unrealized Gain		Unrealized Loss		Estimated Fair Value
Cash equivalents:
Money market funds	$	152,223	$	—	$	—	$	152,223



Total cash equivalents	152,223		—		—		152,223
Short-term investments:


U.S. treasury securities	1,922,344		10		(10,166)		1,912,188
Corporate debt securities	331,050		—		(1,581)		329,469
Total short-term investments	2,253,394		10		(11,747)		2,241,657
Total	$	2,405,617	$	10	$	(11,747)	$	2,393,880

All short-term investments were designated as available-for-sale securities as of July 31, 2022 and January 31, 2022.

The following table presents the contractual maturities of the Company’s short-term investments as of July 31, 2022 (in thousands):


	As of July 31, 2022
	Amortized Cost		Estimated Fair Value
	(unaudited)
Due within one year	$	1,743,049	$	1,720,573
Due between one to five years	548,343		540,383
Total	$	2,291,392	$	2,260,956

The Company included $7.3 million and $6.0 million of interest receivable in Prepaid expenses and other current assets on the condensed consolidated balance sheets as of July 31, 2022 and January 31, 2022, respectively. The Company did not recognize an allowance for credit losses against interest receivable as of July 31, 2022 and January 31, 2022 because such potential losses were not material.

The following table presents the fair values and unrealized losses related to the Company’s investments in available-for-sale debt securities classified by length of time that the securities have been in a continuous unrealized loss position as of July 31, 2022 (in thousands):


	Less Than 12 Months				More Than 12 Months				Total
	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
	(unaudited)
U.S. treasury securities	$	1,658,111	$	(22,352)	$	223,145	$	(4,600)	$	1,881,256	$	(26,952)
Corporate debt securities	200,861		(2,849)		64,255		(720)		265,116		(3,569)
Total	$	1,858,972	$	(25,201)	$	287,400	$	(5,320)	$	2,146,372	$	(30,521)

The Company had 195 and 193 short-term investments in unrealized loss positions as of July 31, 2022 and January 31, 2022, respectively. There were no material realized gains or losses from available-for-sale securities that were reclassified out of accumulated other comprehensive income for the three and six months ended July 31, 2022 or 2021.

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 July 31, 2022 and January 31, 2022.

Strategic Investments

The Company's strategic investments primarily include equity investments in privately-held companies, which do not have a readily determinable fair value. As of July 31, 2022 and January 31, 2022, the balance of strategic investments was $21.8 million and $15.3 million, respectively.

During the three and six months ended July 31, 2022, the Company recorded $0.6 million and $2.0 million, respectively, of gains on strategic investments. During the three and six months ended July 31, 2021, the Company recorded $2.4 million and $5.3 million, respectively, of gains on strategic investments. Gains on strategic investments consists primarily of observable price adjustments related to equity investments in privately-held companies. All gains and losses on strategic investments, whether realized or unrealized, are recognized in Interest income and other, net on the condensed consolidated statements of operations.