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Composition of certain financial statement captions
 6 Months Ended
Jul. 31, 2024
Composition of Certain Financial Statements [Abstract]  
Composition of certain financial statement captions Composition of certain financial statement captions
(a) Accrued expenses
Accrued expenses as of July 31, 2024 and January 31, 2024 are as follows:
 July 31, 2024January 31, 2024
Payroll-related expenses and taxes$11,664 $8,981 
Stock-based compensation liability4,393 5,890 
Payment processing fees liability5,517 6,008 
Acquisition-related liabilities997 1,888 
Income and other tax liabilities2,005 3,042 
Information technology4,971 5,927 
Other3,121 5,394 
Total$32,668 $37,130 
(b) Other current liabilities and other long-term liabilities
Other current liabilities as of July 31, 2024 and January 31, 2024 were $7,515 and $5,875, respectively. Other long-term liabilities as of July 31, 2024 and January 31, 2024 were $76 and $2,857, respectively.
Other current liabilities and other long-term liabilities primarily represent deferred consideration liabilities payable to the former equity holders of ConnectOnCall.com, LLC (“ConnectOnCall”) which the Company acquired during the year ended January 31, 2024. Deferred consideration liabilities are payable through June 30, 2025. Accordingly, as of July 31, 2024, all deferred consideration liabilities are classified as other current liabilities.
(c) Property and equipment
Property and equipment as of July 31, 2024 and January 31, 2024 are as follows:
 
Useful Life
 (years)July 31, 2024January 31, 2024
PhreesiaPads and Arrivals Kiosks3$20,858 $18,610 
Computer equipment370,250 62,888 
Computer software
3 to 5
13,567 11,687 
Hardware development3575 576 
Total property and equipment$105,250 $93,761 
Less: accumulated depreciation(84,295)(76,859)
Property and equipment — net$20,955 $16,902 
Depreciation expense related to property and equipment amounted to $3,921 and $4,244 for the three months ended July 31, 2024 and 2023, respectively. Depreciation expense related to property and equipment amounted to $7,445 and $8,748 for the six months ended July 31, 2024 and 2023, respectively.
Property and equipment - net and related depreciation expense includes assets acquired under finance leases. Assets acquired under finance leases included in computer equipment were $42,112 and $35,250 as of July 31, 2024 and January 31, 2024, respectively. Accumulated amortization of assets under finance leases was $30,777 and $27,399 as of July 31, 2024 and January 31, 2024, respectively. See Note 10 - Leases for additional information regarding finance leases.
(d) Capitalized internal use software
For the three months ended July 31, 2024 and 2023, the Company capitalized $4,030 and $5,225, respectively, of costs related to the Company’s solutions. For the six months ended July 31, 2024 and 2023, the Company capitalized $8,418 and $10,371, respectively, of costs related to the Company’s solutions.
During the three months ended July 31, 2024 and 2023, amortization expense related to capitalized internal-use software was $2,511 and $2,173, respectively. During the six months ended July 31, 2024 and 2023, amortization expense related to capitalized internal-use software was $4,790 and $4,316, respectively.
(e) Intangible assets and goodwill
The following presents the details of intangible assets as of July 31, 2024 and January 31, 2024:
Useful Life
 (years)July 31, 2024January 31, 2024
Acquired technology
5 to 7
$9,310 $9,310 
Customer relationship
7 to 15
17,940 17,940 
License156,200 6,200 
Trademarks153,100 3,100 
Total intangible assets, gross carrying value$36,550 $36,550 
Less: accumulated amortization(6,666)(4,925)
Net carrying value$29,884 $31,625 
The weighted average remaining useful life for acquired technology in years was 5.5 and 6.0 as of July 31, 2024 and January 31, 2024, respectively. The remaining useful life for customer relationships in years was 12.0 and 12.4 as of July 31, 2024 and January 31, 2024, respectively. The remaining useful life for the license to the Patient Activation Measure ("PAM"®) in years was 12.4 and 12.8 as of July 31, 2024 and January 31, 2024, respectively. The remaining useful life for the trademarks in years was 14.0 and 14.5 as of July 31, 2024 and January 31, 2024, respectively.
Amortization expense associated with intangible assets for the three months ended July 31, 2024 and 2023, was $871 and $364, respectively. Amortization expense associated with intangible assets for the six months ended July 31, 2024 and 2023, was $1,741 and $707, respectively.
The estimated amortization expense for intangible assets for the next five years and thereafter is as follows as of July 31, 2024:
July 31, 2024
2025 (Remaining six months)
$1,742 
Fiscal Years Ending January 31,
20263,450 
20273,157 
20283,157 
2029 - thereafter18,378 
Total$29,884 
There were no changes to the Company's goodwill balance during the six months ended July 31, 2024. The Company did not record any impairments of goodwill during the three and six months ended July 31, 2024 or 2023.
(f) Accounts receivable
Accounts receivable as of July 31, 2024 and January 31, 2024 are as follows:
 July 31, 2024January 31, 2024
Billed$54,303 $62,880 
Unbilled8,336 3,375 
Total accounts receivable, gross$62,639 $66,255 
Less: accounts receivable allowances(1,365)(1,392)
Total accounts receivable$61,274 $64,863 
Activity in the Company's allowance for doubtful accounts was as follows for the six months ended July 31, 2024:
 July 31, 2024
Balance, January 31, 2024
$1,392 
Bad debt expense120 
Write-offs and adjustments(147)
Balance, July 31, 2024
$1,365 
The Company’s allowance for doubtful accounts represents the current estimate of expected future losses based on prior bad debt experience as well as considerations for specific customers as applicable. The Company's accounts receivable are considered past due when they are outstanding past the due date listed on the invoice to the customer. The Company writes off accounts receivable and removes the associated allowance for doubtful accounts when the Company deems the receivables to be uncollectible.
(g) Prepaid and other current assets
Prepaid and other current assets as of July 31, 2024 and January 31, 2024 are as follows:
 
 July 31, 2024January 31, 2024
Prepaid software and business systems$5,304 $4,922 
Prepaid data center expenses3,400 3,872 
Prepaid insurance266 1,257 
Other prepaid expenses and other current assets2,725 4,410 
Total prepaid and other current assets$11,695 $14,461 
(h) Cloud computing implementation costs
The Company enters into cloud computing service contracts to support its sales and marketing, product development and administrative activities. The Company capitalizes certain implementation costs for cloud
computing arrangements that meet the definition of a service contract. The Company includes these capitalized implementation costs within prepaid expenses and other current assets and within other assets on its consolidated balance sheets. Once placed in service, the Company amortizes these costs over the remaining subscription term to the same caption in the consolidated statements of operations as the related cloud subscription. Capitalized implementation costs for cloud computing arrangements accounted for as service contracts were $1,532 as of July 31, 2024 and January 31, 2024, respectively. Accumulated amortization of capitalized implementation costs for these arrangements were $1,225 and $1,021 as of July 31, 2024 and January 31, 2024, respectively.