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Income Taxes
 12 Months Ended
Apr. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company is incorporated in the Netherlands but operates in various countries with differing tax laws and rates. The geographical breakdown of loss before provision for (benefit from) income taxes is summarized as follows (in thousands):
Year Ended April 30,
202520242023
Dutch$(135,145)$(233,089)$(283,010)
Foreign103,576 110,333 66,133 
Loss before income taxes$(31,569)$(122,756)$(216,877)
The components of the provision for (benefit from) income taxes were as follows (in thousands):
Year Ended April 30,
202520242023
Current:
Dutch$5,815 $4,297 $2,910 
Foreign15,540 24,558 17,042 
Total current tax expense21,355 28,855 19,952 
Deferred:
Dutch448 43 (71)
Foreign54,742 (213,374)(597)
Total deferred tax expense (income)55,190 (213,331)(668)
Total provision for (benefit from) income taxes
$76,545 $(184,476)$19,284 
The Company’s effective tax rate substantially differed from the Dutch statutory tax rate of 25.8% primarily due to the valuation allowance for the Netherlands and waiver of certain deductions subject to the BEAT. A reconciliation of income taxes at the statutory income tax rate to the provision for (benefit from) income taxes included in the consolidated statements of operations is as follows (in thousands, except for rates):
Year Ended April 30,
202520242023
Tax
Rate
Tax
Rate
Tax
Rate
Dutch statutory income tax$(8,145)25.8 %$(31,671)25.8 %$(55,954)25.8 %
Foreign income taxed at different rates(5,561)17.6 %(2,406)2.0 %(1,305)0.6 %
Tax credits(13,508)42.8 %(10,149)8.3 %(7,349)3.4 %
Stock-based compensation(9,282)29.4 %(10,296)8.4 %5,018 (2.3)%
Change in valuation allowance48,539 (153.8)%(186,166)151.6 %69,271 (31.9)%
Intellectual property migration
610 (1.9)%7,353 (6.0)%— — %
BEAT waiver election
45,321 (143.6)%40,141 (32.7)%— — %
Foreign-Derived Intangible Income (“FDII”) exclusion
(2,241)7.1 %(2,328)1.9 %— — %
Executive compensation
6,523 (20.7)%4,091 (3.3)%— — %
Foreign withholding taxes2,701 (8.6)%2,864 (2.3)%3,201 (1.5)%
State taxes
6,867 (21.8)%1,866 (1.5)%455 (0.2)%
Unrecognized tax benefit
6,713 (21.3)%1,406 (1.1)%1,414 (0.7)%
Tax credit add-back
1,215 (3.8)%950 (0.8)%809 (0.4)%
Meals and entertainment
598 (1.9)%566 (0.5)%454 (0.2)%
Prior-year true-ups
(3,680)11.7 %(846)0.7 %11 — %
Other(125)0.5 %149 (0.2)%3,259 (1.5)%
Provision for (benefit from) income taxes
$76,545 (242.5)%$(184,476)150.3 %$19,284 (8.9)%
Deferred Income Taxes
Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. Management assesses whether it is more likely than not that some portion or all of the deferred tax assets will be realized. Deferred tax assets are reduced by a valuation allowance where management has concluded it is more likely than not that the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. Management makes estimates and judgments about future taxable income based on assumptions that are consistent with the Company’s plans and estimates.
Significant components of the Company’s deferred tax assets and liabilities are summarized as follows (in thousands):
As of April 30,
20252024
Deferred tax assets:
Accrued compensation$5,837 $5,324 
Net operating loss carryforwards
537,912 547,590 
Intangible assets
5,641 5,768 
Deferred revenue7,478 8,057 
Stock-based compensation20,613 18,858 
Tax credits32,271 31,373 
Disallowed interest expense13,183 12,380 
Lease liabilities4,727 3,706 
Other11,018 6,657 
Gross deferred tax assets638,680 639,713 
Less valuation allowance(437,497)(386,882)
Total deferred tax assets201,183 252,831 
Deferred tax liabilities:
Deferred contract acquisition costs(38,629)(37,005)
Right of use assets(4,133)(2,546)
Gross deferred tax liabilities(42,762)(39,551)
Net deferred tax assets
$158,421 $213,280 
The valuation allowance for deferred tax assets as of April 30, 2025 and 2024 was $437.5 million and $386.9 million, respectively. As the Company has generated losses since inception in the Netherlands and is anticipated to have cumulative losses for the foreseeable future, management maintains a full valuation allowance against the net deferred tax assets in this jurisdiction. In addition, the United Kingdom jurisdiction is also anticipated to have cumulative losses for the foreseeable future and, as such, a valuation allowance has been established for this jurisdiction. The valuation allowance for the Netherlands deferred tax assets as of April 30, 2025 and 2024 was $390.5 million and $344.5 million, respectively, and the valuation allowance for the United Kingdom deferred tax assets as of April 30, 2025 and 2024 was $24.3 million and $19.4 million, respectively. In addition, the Company carries a valuation allowance against certain United States state deferred tax assets, which was $22.7 million and $23.0 million as of April 30, 2025 and 2024, respectively. To the extent sufficient positive evidence becomes available, the Company may release all or a portion of the Netherlands valuation allowance in one or more future periods. A release of the valuation allowance, if any, would result in the recognition of certain deferred tax assets and a material income tax benefit for the period in which such release is recorded.
As of April 30, 2025, the Company had net operating loss carryforwards for Netherlands, United States (federal and state, respectively), and United Kingdom income tax purposes of $1.407 billion, $546.3 million, $551.2 million, and $97.9 million, respectively, with losses being carried forward indefinitely and beginning to expire in the year ending April 30, 2026 for the United States (federal and state, respectively), with Netherlands and United Kingdom losses being carried forward indefinitely. The Company also has research and development tax credit carryforwards for United States (federal and state, respectively), Canada, and Spain for income tax purposes of $34.6 million, $9.3 million, $1.1 million, and $1.4 million, respectively, which begin to expire on April 30, 2039, April 30, 2026, April 30, 2042, and April 30, 2041, respectively. The Company also has research and development tax credit carryforwards for Australia income tax purposes of $0.6 million being carried forward indefinitely. The deferred tax assets associated with the net operating loss carryforwards and other tax attributes in the Netherlands and the United Kingdom are subject to a full valuation allowance.
Uncertain Tax Positions
The calculation of the Company’s tax obligations involves dealing with uncertainties in the application of complex tax laws and regulations. ASC 740, Income Taxes, provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, on the basis of the technical merits. The Company has assessed its income tax positions and recorded tax benefits for all years subject to examination, based on the Company’s evaluation of the facts, circumstances, and information available at each period end.
Although the Company believes that it has adequately reserved for its uncertain tax positions, the Company can provide no assurance that the final tax outcome of these matters will not be materially different. As the Company continues to grow in size, it will face increased complexity, and the Company’s unrecognized tax benefits may increase in the future. The Company adjusts its reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made.
The Company had unrecognized tax benefits of $29.6 million as of April 30, 2025, of which none would impact the effective tax rate before consideration of any valuation allowance. The activity within the Company’s unrecognized tax benefits is summarized as follows (in thousands):
As of April 30,
202520242023
Balance as of beginning of year$22,691 $18,157 $16,622 
Increase (decrease) related to tax positions taken in prior periods1,553 1,201 (1,050)
Increase related to tax positions taken in the current period5,381 3,333 2,585 
Balance as of end of year$29,625 $22,691 $18,157 
Approximately $1.6 million of the increase for the year ended April 30, 2025 for tax positions taken in prior periods is primarily due to the filing of tax returns during the fiscal year. Approximately $5.4 million of the increase in tax positions related to the current period is primarily from research and development tax credits generated for the year ended April 30, 2025.
The Company’s policy is to recognize penalties and interest accrued on any unrecognized tax benefits as a component of income tax expense. The Company recognized interest and penalties of $0.9 million for the year ended April 30, 2025, and $0.2 million for both of the years ended April 30, 2024 and 2023. The amount of accrued interest and penalties recorded on the consolidated balance sheets as of April 30, 2025 and 2024 was $1.3 million and $0.4 million, respectively.
The Company is subject to periodic examination of income tax returns by various domestic and international tax authorities. During the year ended April 30, 2025, the Company was subject to new audits by various tax authorities.
The Company does not anticipate any significant increases or decreases in its uncertain tax positions within the next twelve months. The Company files tax returns in multiple jurisdictions, including the Netherlands and United States. The Company’s tax filings for fiscal years starting with the year ended April 30, 2018 remain open in various tax jurisdictions.
Withholding taxes associated with the repatriation of earnings or for temporary differences related to investments in non-Dutch subsidiaries have not been provided for, as the Company intends to reinvest the earnings of such subsidiaries indefinitely. As of April 30, 2025, there were cumulative earnings of $213.4 million from the non-U.S. subsidiaries and a deficit from the U.S. subsidiaries of $825.6 million. If such earnings were to be repatriated, they would be exempt from taxation in the Netherlands and the amount of dividend withholding taxes from such foreign jurisdictions would be $5.7 million, due to the various income tax treaties between the Netherlands and the respective foreign jurisdictions.
In 2021, the Organization for Economic Cooperation and Development (“OECD”) published Pillar Two Model Rules defining a global minimum tax, which calls for the taxation of large corporations at a minimum rate of 15%. The OECD has since issued administrative guidance providing transition and safe harbor rules concerning the implementation of the Pillar Two global minimum tax. A number of countries have proposed or enacted legislation to implement core elements of the Pillar Two proposal. Pillar Two did not have a significant impact on the Company’s consolidated financial statements for the year ended April 30, 2025. The Company continues to monitor the impact of proposed and enacted global tax legislation.