Segment Reporting

3 Months Ended

Apr. 30, 2025

Segment Reporting [Abstract]

Segment Reporting

Note 13 – Segment Reporting

The Company has one reportable segment which is software and services. The software and services segment provides unified data security solutions to customers primarily under SaaS arrangements. The Company manages the business activities on a consolidated basis. The technology used in the customer arrangements is primarily based on a single software platform that is deployed to and implemented by customers in a similar manner. The types of software and services from which the Company generates revenue are described under the “Revenue Recognition” policy within the “Note 2, Basis of Presentation and Significant Accounting Policies”.

The Company’s chief operating decision maker is its chief executive officer. The chief operating decision maker assesses performance for the software and services segment and decides how to allocate resources based on net loss that is also reported on the condensed consolidated statements of operations as consolidated net loss. The chief operating decision maker does not use any segment assets measure to assess performance and decide how to allocate resources.

The chief operating decision maker uses net loss and the functional areas as a percentage of revenue to evaluate and decide where to invest within the software and services segment. Net loss is used to monitor budget versus actual results. The chief operating decision maker also uses net loss in competitive analysis by benchmarking to the Company’s competitors. The competitive analysis along with the monitoring of budgeted versus actual results are used in assessing the performance of the segment.

The Company does not have intra-entity sales or transfers.

The following table presents the segment information (in thousands):

	Three Months Ended April 30,
	2025		2024
Total revenue	$	278,481	$	187,315
Less:
Adjusted subscription cost of revenue (1)	46,635		37,614
Remaining cost of revenue	5,124		6,511
Remaining research and development expenses	59,883		59,054
Remaining sales and marketing expenses	144,404		137,922
Remaining general and administrative expenses	33,208		32,864
Stock-based compensation expense (2)	73,540		630,330
Depreciation and amortization	7,818		6,954
Amortization of acquired intangibles	960		903
Interest expense	9,813		10,624
Income tax expense (benefit)	1,274		(1,051)
Other items (3)	5,622		623
Plus:
Interest income	7,696		2,942
Segment net loss	(102,104)		(732,091)
Consolidated net loss	$	(102,104)	$	(732,091)

(1) Adjusted subscription cost of revenue is subscription cost of revenue adjusted for stock-based compensation expense, amortization of acquired intangibles, and stock-based compensation from amortization of capitalized internal-use software as follows (in thousands):

	Three Months Ended April 30,
	2025		2024
Subscription cost of revenue	$	51,912	$	73,725
Less:
Stock-based compensation expense	3,968		35,193
Stock-based compensation from amortization of capitalized internal-use software	349		15
Amortization of acquired intangibles	960		903
Adjusted subscription cost of revenue	$	46,635	$	37,614

(2) See Note 10 for stock-based compensation expense by captions.

(3) Other items include foreign currency exchange gains (losses).