Income Taxes (Tables)

12 Months Ended

Jan. 31, 2025

Income Tax Disclosure [Abstract]

Schedule of Domestic and Foreign Components of Pre-tax Loss

The domestic and foreign components of pre-tax income (loss) for fiscal 2025, 2024 and 2023 were as follows:

	Year Ended January 31,
	2025		2024		2023
	(dollars in millions)
Domestic	$	28	$	(360)	$	(834)
Foreign	18		23		33
Income (loss) before provision for income taxes	$	46	$	(337)	$	(801)

Schedule of Components of Provision for (Benefit from) Income Taxes

The components of the provision for income taxes for fiscal 2025, 2024 and 2023 were as follows:

	Year Ended January 31,
	2025		2024		2023
	(dollars in millions)
Current:
Federal	$	5	$	2	$	—
State	2		3		2
Foreign	9		6		5
Total current provision for income taxes	16		11		7
Deferred:
Foreign	2		7		7
Total deferred provision for income taxes	2		7		7
Total provision for income taxes	$	18	$	18	$	14

Schedule of Effective Income Tax Rate Reconciliation

The following is a reconciliation of the statutory federal income tax rate to the Company’s effective tax rate for fiscal 2025, 2024 and 2023:

	Year Ended January 31,
	2025		2024		2023
Tax at federal statutory rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal benefit	3.7		3.8		3.6
Change in valuation allowance	27.4		(5.6)		(9.9)
Stock-based compensation	14.5		(28.4)		(11.9)
Effect of foreign operations	8.1		(0.7)		(1.0)
Research and development credits	(51.7)		5.3		2.6
Non-deductible expenses	19.2		(1.5)		(6.2)
Provision to return true-up	(7.1)		0.2		—
Unrecognized tax benefits	7.9		—		—
Other, net	(4.0)		0.6		0.2
Effective tax rate	39.0	%	(5.3)	%	(1.6)	%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences and related deferred tax assets and liabilities as of January 31, 2025 and 2024 were as follows:

	As of January 31,
	2025		2024
	(dollars in millions)
Deferred tax assets:
Net operating loss carryforwards	$	702	$	716
Capitalized research expenditures	335		268
Stock-based compensation	41		41
Operating lease liabilities	31		36
Other reserves and accruals	24		21
Research and development and other credits	146		125
Total deferred tax assets	1,279		1,207
Valuation allowance	(1,144)		(1,087)
Total deferred tax assets, net	135		120
Deferred tax liabilities:
Deferred commissions	(99)		(67)
Other deferred tax liabilities	(15)		(5)
Operating lease right-of-use assets	(20)		(21)
Depreciation and amortization	(14)		(35)
Total deferred tax liabilities	(148)		(128)
Net deferred tax liabilities	$	(13)	$	(8)

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of beginning and ending amount of unrecognized tax benefit was as follows:

	Year Ended January 31,
	2025		2024		2023
	(dollars in millions)
Gross amount of unrecognized tax benefits as of the beginning of the year	$	49	$	43	$	37
Additions based on tax positions related to a prior year	4		—		1
Additions based on tax positions related to current year	12		7		7
Reductions based on tax positions taken in a prior year	—		(1)		(2)
Gross amount of unrecognized tax benefits as of the end of the year	$	65	$	49	$	43