Income Taxes

6 Months Ended

Jul. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Note 12 – Income Taxes

The Company recorded a tax expense of $4.2 million and $3.0 million for the three months ended July 31, 2024 and 2023, respectively, and $3.2 million and $4.3 million for the six months ended July 31, 2024 and 2023, respectively. For the three months ended July 31, 2024 and 2023, the income tax provision consisted of taxes on the income of the Company's foreign subsidiaries, foreign withholding taxes, and U.S. state taxes. For the six months ended July 31, 2024, the income tax provision consisted of a U.S. federal & state tax benefit as a result of several of the Company's foreign subsidiaries making an election in the current year to be treated as U.S. branches for federal income tax purposes effective in fiscal year ended January 31, 2024, partially offset by taxes on the income of the Company’s foreign subsidiaries, foreign withholding taxes, and U.S. state taxes. For the six months ended July 31, 2023, the income tax provision consisted of taxes on the income of the Company's foreign subsidiaries, foreign withholding taxes, and U.S. state taxes.

As of July 31, 2024, the Company maintained a full valuation allowance on its U.S. federal and state net deferred tax assets as it was more likely than not that those deferred tax assets will not be realized.