v3.24.2.u1
Redeemable Non-Controlling Interest
6 Months Ended
Jul. 31, 2024
Noncontrolling Interest [Abstract]  
Redeemable Non-Controlling Interest Redeemable Non-Controlling Interest
In May 2022, the Company established a joint venture, PagerDuty K.K. The Company obtained a 51% controlling interest and has consolidated the financial results of the joint venture.

The agreements with the non-controlling interest holders of PagerDuty K.K. contain redemption features whereby the interest held by the non-controlling interest holders is redeemable either: (i) at the option of the non-controlling interest holders; or (ii) at the option of the Company, both beginning on the tenth anniversary of the initial capital contribution. The balance of the redeemable non-controlling interest is reported at the greater of the initial carrying amount adjusted for the redeemable non-controlling interest's share of earnings or losses and other comprehensive income or loss, or its redemption value, which is determined based on a prescribed formula derived from multiple metrics including the annual recurring revenue of PagerDuty K.K. The resulting changes in the estimated redemption amount are recorded with corresponding adjustments against additional paid-in capital due to the absence of retained earnings. The carrying amount of the redeemable non-controlling interest is recorded on the Company's condensed consolidated balance sheets as temporary equity.

The following table summarizes the activity in the redeemable non-controlling interest for the periods indicated (in thousands):

Three months ended July 31,Six months ended July 31,
2024202320242023
Balance at beginning of period$14,004 $492 $7,293 $1,108 
Investment by redeemable non-controlling interest— 1,781 — 1,781 
Net loss attributable to redeemable non-controlling interest(272)(569)(478)(1,189)
Adjustments to redeemable non-controlling interest2,330 1,729 9,247 1,729 
Foreign currency translation adjustments— (2)— 2 
Balance at end of period$16,062 $3,431 $16,062 $3,431