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Cash Equivalents and Short-Term Investments
 6 Months Ended
Jul. 31, 2024
Cash and Cash Equivalents [Abstract]  
Cash Equivalents and Short-Term Investments
4. Cash Equivalents and Short-Term Investments
The following table summarizes the Company’s cash equivalents and short-term investments by category (in thousands):
As of July 31, 2024
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Level 1:
Cash equivalents (1)
    Money market funds$350,712 $— $— $350,712 
Level 2:
Cash equivalents (1)
    U.S. Treasury securities8,946 — — 8,946 
    Commercial paper2,984 — (1)2,983 
Total cash equivalents362,642 — (1)362,641 
Short-term investments
    Commercial paper19,208 — (7)19,201 
    Corporate debt securities196,403 193 (249)196,347 
    U.S. Agency securities51,420 14 (53)51,381 
 U.S. Treasury securities377,412 359 (212)377,559 
Total short-term investments644,443 566 (521)644,488 
Level 2 total656,373 566 (522)656,417 
Total cash equivalents and short-term investments$1,007,085 $566 $(522)$1,007,129 
(1) Included in “cash and cash equivalents” in our condensed consolidated balance sheet as of July 31, 2024, in addition to cash of $76.0 million.
As of January 31, 2024
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Level 1:
Cash equivalents (1)
    Money market funds$187,175 $— $— $187,175 
Level 2:
Cash equivalents (1)
    U.S. Treasury securities15,909 — (2)15,907 
    Commercial paper3,962 — (1)3,961 
Total cash equivalents207,046 — (3)207,043 
Short-term investments
    Commercial paper23,229 14 (1)23,242 
    Corporate debt securities231,219 740 (250)231,709 
    U.S. Agency securities56,324 29 (136)56,217 
    U.S. Treasury securities437,369 141 (389)437,121 
Total short-term investments748,141 924 (776)748,289 
Level 2 total768,012 924 (779)768,157 
Total cash equivalents and short-term investments$955,187 $924 $(779)$955,332 
(1) Included in “cash and cash equivalents” in our condensed consolidated balance sheet as of January 31, 2024, in addition to cash of $81.0 million.
The fair value of the Company’s Level 1 financial instruments, such as money market funds which are traded in active markets, is based on quoted market prices for identical instruments. The fair value of the Company’s Level 2 financial instruments such as commercial paper, corporate debt and U.S. government securities are obtained from an independent pricing service, which may use inputs other than quoted prices that are directly or indirectly observable in the market, including readily available pricing sources for the identical underlying security that may not be actively traded. The Company’s marketable securities are held by custodians who obtain investment prices from a third-party pricing provider that incorporates standard inputs in various asset price models.
The Company uses the specific-identification method to determine any realized gains or losses from the sale of the Company’s short-term investments classified as available-for-sale. For the three and six months ended July 31, 2024 and 2023, the Company did not have any material realized gains or losses as a result of maturities or sales of short-term investments.
During the three and six months ended July 31, 2024, the Company recorded $12.8 million and $24.9 million of interest income on cash and cash equivalents and short-term investments, respectively, which includes $4.2 million and $9.1 million of net amortization of premiums or discounts on short-term investments during the three and six months ended July 31, 2024, respectively. During the three and six months ended July 31, 2023, the Company recorded $9.1 million and $16.4 million of interest income on cash equivalents and short-term investments, respectively, which includes $4.9 million and $8.5 million of net amortization of premiums or discounts on short-term investments during the three and six months ended July 31, 2023, respectively.
The following table summarizes unrealized losses on the Company’s cash equivalents and short-term investments aggregated by category and the length of time such aggregated investments have been in a continuous unrealized loss position as of the periods presented (in thousands):
Less Than 12 Months12 Months or GreaterTotal
Carrying ValueGross Unrealized LossesCarrying ValueGross Unrealized LossesFair ValueGross Unrealized Losses
July 31, 2024
    U.S. Agency securities$32,661 $(38)$13,729 $(15)$46,390 $(53)
    Commercial paper19,074 (8)— — 19,074 (8)
    Corporate debt securities75,764 (102)43,796 (147)119,560 (249)
    U.S. Treasury securities199,799 (170)25,135 (42)224,934 (212)
Total cash equivalents and short-term investments$327,298 $(318)$82,660 $(204)$409,958 $(522)
Less Than 12 Months12 Months or GreaterTotal
Carrying ValueGross Unrealized LossesCarrying ValueGross Unrealized LossesFair ValueGross Unrealized Losses
January 31, 2024
    U.S. Agency securities$35,979 $(53)$11,386 $(83)$47,365 $(136)
    Commercial paper15,462 (2)— — 15,462 (2)
    Corporate debt securities85,998 (192)15,485 (58)101,483 (250)
    U.S. Treasury securities139,567 (192)41,193 (199)180,760 (391)
Total cash equivalents and short-term investments$277,006 $(439)$68,064 $(340)$345,070 $(779)
The following table classifies the Company’s short-term investments by contractual maturities (in thousands):
July 31, 2024January 31, 2024
Amortized costFair ValueAmortized costFair Value
Due within 1 year$546,547 $546,368 $619,286 $618,765 
Due between 1 year to 2 years97,896 98,120 128,855 129,524 
Total$644,443 $644,488 $748,141 $748,289 
All available-for-sale securities have been classified as current, based on management’s ability to use the funds in current operations.
Liabilities are measured at fair value on a recurring basis. The Company has contingent cash consideration from a business combination which is determined based upon the satisfaction of certain defined operational milestones and remeasured at fair value at each reporting period through earnings. As the fair value is based on unobservable inputs, the liability is included in Level 3 of the fair value measurement hierarchy.
The Company reassessed the fair value of outstanding operational milestones during the three and six months ended July 31, 2024 and 2023. As of July 31, 2024, the contingent consideration was revalued to $7.4 million, resulting in a change in fair value of $3.8 million which is included in general and administrative expenses in the condensed consolidated statement of operations for the three months ended July 31, 2024. There were no changes to the fair value during the three and six months ended July 31, 2023. The Company had $7.4 million and $3.6 million of Level 3 contingent consideration as of July 31, 2024 and January 31, 2024, respectively.
Interest accretion expense on contingent cash consideration was immaterial and $0.1 million for the three and six months ended July 31, 2024, respectively, and immaterial and $0.1 million for the three and six months ended July 31, 2023, respectively.