Cash and Cash Equivalents, Investments and Fair Value Measurements

3 Months Ended

Apr. 30, 2024

Cash and Cash Equivalents, Investments and Fair Value Measurements

CASH AND CASH EQUIVALENTS, INVESTMENTS, AND FAIR VALUE MEASUREMENTS

The following tables summarize information about our cash, cash equivalents, and investments by investment category as of April 30, 2024 and January 31, 2024 (in thousands):


	As of April 30, 2024
	Fair Value Level	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Assets
Cash and cash equivalents:
Cash	Level 1	$	93,033	$	—	$	—	$	93,033
Money market funds	Level 1	105,683		—		—		105,683


Total cash and cash equivalents		$	198,716	$	—	$	—	$	198,716
Short-term investments:
U.S. Treasury securities	Level 1	$	187,909	$	—	$	(586)	$	187,323

Corporate notes and bonds	Level 2	232,901		1		(960)		231,942
U.S. agency securities	Level 2	155,802		2		(581)		155,223
Total short-term investments		$	576,612	$	3	$	(2,127)	$	574,488
Long-term investments:
U.S. Treasury securities	Level 1	$	86,966	$	—	$	(246)	$	86,720

Corporate notes and bonds	Level 2	151,624		8		(623)		151,009
U.S. agency securities	Level 2	80,591		—		(260)		80,331
Total long-term investments		$	319,181	$	8	$	(1,129)	$	318,060

Total assets measured at fair value		$	1,094,509	$	11	$	(3,256)	$	1,091,264


	As of January 31, 2024
	Fair Value Level	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Assets
Cash and cash equivalents:
Cash	Level 1	$	43,925	$	—	$	—	$	43,925
Money market funds	Level 1	204,481		—		—		204,481
Certificates of deposit	Level 2	8,245		—		—		8,245


Total cash and cash equivalents		$	256,651	$	—	$	—	$	256,651
Short-term investments:
U.S. Treasury securities	Level 1	$	234,776	$	—	$	(1,053)	$	233,723

Corporate notes and bonds	Level 2	279,248		12		(1,068)		278,192
U.S. agency securities	Level 2	157,873		18		(501)		157,390
Total short-term investments		671,897		30		(2,622)		669,305
Long-term investments:
U.S. Treasury securities	Level 1	$	27,175	$	121	$	—	$	27,296

Corporate notes and bonds	Level 2	69,970		279		(67)		70,182
U.S. agency securities	Level 2	90,924		303		(48)		91,179
Total long-term investments		$	188,069	$	703	$	(115)	$	188,657

Total assets measured at fair value		$	1,116,617	$	733	$	(2,737)	$	1,114,613

We invest in highly rated securities with a weighted average maturity of 18 months or less. As of April 30, 2024, all of our investments will mature within 2 years.

There were no transfers between the levels of the fair value hierarchy during the three months ended April 30, 2024 and 2023.

As of April 30, 2024, we determined that the declines in the market value of our investment portfolio were not driven by credit related factors. During the three months ended April 30, 2024 and 2023, we did not recognize any losses on our investments due to credit-related factors. As of April 30, 2024, we had $1.4 million in continuous unrealized loss positions for more than twelve months on securities with a total fair value of $333.4 million.

The tables above do not include the Company’s strategic investments in non-marketable debt and equity securities, recorded at cost, less any impairment, plus or minus observable price changes in orderly transactions for identical or similar investments of the same issuer (the Measurement Alternative) and were $18.4 million and $16.1 million as of April 30, 2024 and January 31, 2024, respectively.

The Company incurred no impairment charges nor realized gains on its non-marketable strategic investments during the three months ended April 30, 2024 and April 30, 2023. The fair value was estimated on a non-recurring basis based on Level 3 inputs.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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