Goodwill and Intangible Assets

6 Months Ended

Jul. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

5: Goodwill and Intangible Assets

A summary of the changes in the fair value of goodwill is as follows (in thousands):


	Successor

Goodwill (gross) - January 31, 2023	$	1,105,258
Accumulated impairment loss		(698,650	)
Goodwill (net) - January 31, 2023	$	406,608
Business acquisition		10,127
Purchase accounting adjustments from the Business Combination		6,900
Goodwill (net) - July 31, 2023	$	423,635

	Predecessor

Goodwill (gross) - January 31, 2022	$	35,002
Adjustment related to business acquisitions	—
Goodwill (net) - July 31, 2022	$	35,002

Determining the fair value of the Company's single reporting unit requires judgment and the use of significant estimates and assumptions. Given the current competitive and macroeconomic environment and the uncertainties regarding the related impact on the business, there can be no assurance that the estimates and assumptions made for purposes of the Company’s interim and annual goodwill impairment tests will prove to be accurate predictions of the future. If the Company’s assumptions are not realized, the Company may record additional goodwill impairment charges in the future. It is not possible at this time to determine if any such future impairment charge would result or whether such charge would be material.

The tables below summarize the Company’s intangible assets (amounts in thousands, except for useful lives).


	As of July 31, 2023
	Weighted Average Useful Life (in years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	8.7	$	168,100	$	(24,359	)	$	143,741
Developed technology	5.1		99,800		(19,163	)		80,637
Trademarks / trade names	10.0		35,500		(3,529	)		31,971
		$	303,400	$	(47,051	)	$	256,349


	As of January 31, 2023
	Weighted Average Useful Life (in years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	8.6	$	154,400	$	(11,894	)	$	142,506
Developed technology	5.0		95,800		(9,425	)		86,375
Trademarks / trade names	10.0		35,300		(1,737	)		33,563
		$	285,500	$	(23,056	)	$	262,444

The tables below summarizes the future amortization of the Company’s intangible assets (amounts in thousands).


Fiscal 2024 (remaining 6 months)	$	20,568
Fiscal 2025		41,009
Fiscal 2026		40,932
Fiscal 2027		40,909
Fiscal 2028		31,484
Thereafter		81,447
Total amortization of intangible assets expense	$	256,349

On the Company's Condensed Consolidated Statements of Comprehensive Loss, the Company recognizes expense for the amortization of customer relationships within sales and marketing expense, expense for the amortization of developed technology within cost of subscription revenue, and expense for the amortization of trademarks and trade names within general and administrative expense.

The Company recognized amortization of intangible assets expense in the accompanying Condensed Consolidated Statements of Comprehensive Loss as follows (in thousands):


	Successor		Predecessor		Successor		Predecessor
	Three months ended July 31, 2023		Three months ended July 31, 2022		Six months ended July 31, 2023		Six months ended July 31, 2022
Cost of revenue - subscription	$	4,938	$	128	$	9,737	$	256
Sales and marketing		6,383		644		12,466		1,288
General and administrative		908		18		1,792		35
Total amortization of acquired intangible assets	$	12,229	$	790	$	23,995	$	1,579