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Income taxes
 12 Months Ended
Jan. 31, 2024
Income Tax Disclosure [Abstract]  
Income taxes Income taxes
The Company recorded a tax provision of $1,543, $483 and $182, for the years ended January 31, 2024, 2023 and 2022, respectively. The Company's provision for income taxes was 1.1%, 0.3% and 0.2% of loss before income taxes for the years ended January 31, 2024, 2023 and 2022, respectively. The Company's effective tax rate differs from the U.S. statutory tax rate of 21% primarily because the Company records a valuation allowance against the its U.S. deferred tax assets, and due to foreign income tax expense related to its Canadian branch.
Deferred tax assets and deferred tax liabilities are recognized based on temporary differences between the financial reporting and tax basis of assets and liabilities using statutory rates. Management of the Company has evaluated the positive and negative evidence pertaining to the realizability of its deferred tax assets, including the Company’s history of losses, and concluded that it is more likely than not that the Company will not recognize the benefits for the majority of its deferred tax assets. On the basis of this evaluation, the Company has recorded a valuation allowance against its deferred tax assets that are not more likely than not to be realized at both January 31, 2024 and 2023.
The Company’s loss before income taxes was primarily generated in the United States for fiscal 2024, 2023 and 2022.
The Company's income tax provision consisted of the following for fiscal 2024, 2023 and 2022:
Fiscal years ended January 31,
202420232022
Current tax
Federal$— $— $— 
State76 49 39 
Foreign1,239 — — 
Deferred tax
Federal38 109 — 
State— — — 
Foreign190 325 143 
Total provision for income taxes$1,543 $483 $182 
A reconciliation of the statutory U.S. federal income tax rate to the Company's effective tax rate for fiscal 2024, 2023 and 2022 is as follows:
Fiscal years ended January 31,
202420232022
Federal income tax benefit at statutory rate21 %21 %21 %
State and local tax, net of federal benefit3 %5 %9 %
Permanent differences— %— %— %
Equity compensation— %— %6 %
Foreign taxes(1)%— %— %
Other— %— %— %
Change in valuation allowance(24)%(26)%(36)%
Effective income tax rate(1)%— %— %
The significant components of the Company's deferred income tax assets and liabilities as of January 31, 2024 and 2023 are as follows:
January 31,
Deferred tax (liabilities) assets20242023
Net operating loss carryforwards$160,791 $131,574 
Stock based compensation9,278 7,765 
Accruals, reserves, and other expenses3,6682,763
Reserve for bad debts793 530 
Disallowed interest expense1,0411,934
  Depreciation and amortization1,829 — 
Total deferred tax assets177,400 144,566 
Less: valuation allowance(176,641)(143,135)
Net deferred tax (liabilities) assets759 1,431 
Depreciation and amortization— (295)
  Intangible assets(569)(305)
Deferred contract acquisition costs(460)(750)
Total deferred tax liabilities(1,029)(1,350)
Net deferred tax (liabilities) assets$(270)$81 

The Company has accumulated a U.S. Federal net operating loss carryforward of approximately $598,975 and $493,333 as of January 31, 2024 and 2023, respectively. This carryforward may be available to offset future U.S. Federal income tax liabilities and will expire beginning in 2025. As of January 31, 2024, the Company's foreign
branch had no net operating loss carryforwards. The Company utilized the net operating loss carryforwards related to its foreign branch to offset taxable income in Canada during the year ended January 31, 2024. The Company’s unutilized research and development tax credit carryforwards may be carried forward for a period of up to 20 years.
Due to the uncertainty regarding the ability to realize the benefit of the U.S. deferred tax assets primarily relating to net operating loss carryforwards, valuation allowances have been established to reduce the U.S. deferred tax assets to an amount that is more likely than not to be realized.
On the basis of this evaluation, as of January 31, 2024 and 2023, the Company recorded a valuation allowance of $176,641 and $143,135, respectively, to recognize only the portion of the deferred tax asset that is more likely than not to be realized. The $33,506 increase in the valuation allowance recorded during the fiscal year ended January 31, 2024 relates primarily to deferred tax assets established and recorded during the fiscal year ended January 31, 2024. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable foreign income during the carryforward period are reduced.
Under Section 382 of the Internal Revenue Code of 1986, as amended, if a corporation undergoes an “ownership change” (generally defined as a greater than 50% change by value in its equity ownership over a three-year period), the corporation’s ability to use its pre-ownership change net operating loss carryforwards and other pre-ownership change tax attributes to offset its post-change income may be limited. As of January 31, 2024, the Company has U.S. net operating loss carryforwards of approximately $599.0 million. The Company has completed a Section 382 study and as a result of the analysis, it is more likely than not that the Company has experienced an “ownership change”. The Company may also experience ownership changes in the future as a result of subsequent shifts in its stock ownership. Accordingly, if the Company earns net taxable income, it is more likely than not that the Company's ability to use its pre-ownership change net operating loss carryforwards to offset U.S. federal taxable income will be subject to limitations, which could potentially result in increased future tax liability.
The Company files tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company is subject to examination by federal, state, and foreign jurisdictions, where applicable. The Company’s tax years are still open from 2019 to present and, to the extent utilized in future years' tax returns, net operating loss carryforwards at January 31, 2024 will remain subject to examination until the respective tax year is closed.
The Company records unrecognized tax benefits as liabilities or as reductions to deferred tax assets in accordance with ASC 740 and adjusts these balances when its judgement changes as a result of the evaluation of new information previously not available. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of January 31, 2024 the Company has reduced the balance of deferred tax assets for $1.2 million of unrecognized tax benefits. The Company’s unrecognized tax benefits would not affect the effective tax rate if recognized because the Company has a full valuation allowance on its U.S. deferred tax assets. As of January 31, 2024, the Company had no accrued interest or penalties related to uncertain tax positions.
The following is a roll-forward of the Company's total gross unrecognized tax benefits for fiscal 2024:
Fiscal year ended January 31,
2024
Balance, January 31, 2023$— 
Increases for income tax positions related to prior years844 
Increases for income tax positions related to current years396 
Balance, January 31, 2024
$1,240