Financial Instruments

6 Months Ended

Jul. 31, 2024

Fair Value Disclosures [Abstract]

Financial Instruments

Note 5 – Financial Instruments

The Company classifies its financial instruments within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. Three levels of input may be used to measure fair value:

•Level 1 – Observable inputs are unadjusted quoted prices in active markets for identical assets or liabilities.

•Level 2 – Observable inputs are quoted for similar assets and liabilities in active markets or inputs other than quoted prices which are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments.

•Level 3 – Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. These inputs will be based on the Company’s own assumptions and will require significant management judgement or estimation.

The Company did not have any level 3 investments as of July 31, 2024 and January 31, 2024. The following table summarizes the Company’s cash and available-for-sale marketable securities’ amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value by significant investment category reported as cash and cash equivalents or short-term investments (in thousands):

									Reported as
July 31, 2024	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Cash and Cash Equivalents		Short-Term Investments
Cash:	$	64,905	$	—	$	—	$	64,905	$	64,905	$	—
Level 1:
Money market funds	29,648		—		—		29,648		29,648		—
U.S. Treasuries	238,437		265		(14)		238,688		—		238,688
Subtotal	268,085		265		(14)		268,336		29,648		238,688
Level 2:
Commercial paper	178,964		6		(25)		178,945		47,796		131,149
Corporate bonds	75,981		80		(7)		76,054		—		76,054
U.S. government agencies	$	13,101	$	—	$	—	$	13,101	$	—	$	13,101
Subtotal	$	268,046	$	86	$	(32)	$	268,100	$	47,796	$	220,304
Total	$	601,036	$	351	$	(46)	$	601,341	$	142,349	$	458,992

									Reported as
January 31, 2024	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Cash and Cash Equivalents		Short-Term Investments
Cash:	$	72,420	$	—	$	—	$	72,420	$	72,420	$	—
Level 1:
Money market funds	47,696		—		—		47,696		47,696		—
U.S. Treasuries	86,429		70		(13)		86,486		—		86,486
Subtotal	134,125		70		(13)		134,182		47,696		86,486
Level 2:
Commercial paper	33,019		3		(3)		33,019		9,915		23,104
Corporate bonds	17,883		30		(3)		17,910		—		17,910
U.S. government agencies	$	21,703	$	27	$	(10)	$	21,720	$	—	$	21,720
Subtotal	$	72,605	$	60	$	(16)	$	72,649	$	9,915	$	62,734
Total	$	279,150	$	130	$	(29)	$	279,251	$	130,031	$	149,220

The following table summarizes the estimated fair value of the Company’s investments by their remaining contractual maturity dates (in thousands):

	July 31, 2024
Due within one year	$	411,506
Due between one to two years	47,486
Total	$	458,992

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 its short-term investments there were no material credit or non-credit related impairments as of July 31, 2024 and January 31, 2024.