Income taxes |
6 Months Ended |
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Jul. 31, 2024 | |
| Income Tax Disclosure [Abstract] | |
| Income taxes | Income taxes For the three and six months ended July 31, 2024, the Company recorded a tax provision of $750 and $1,260, respectively, compared to a tax provision of $648 and $954, respectively, for the corresponding periods in the prior year. The Company's provision for income taxes was 3.5% and 1.3% of loss before income taxes for the six months ended July 31, 2024 and 2023, 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 its U.S. deferred tax assets, and due to foreign income tax expense related to its Canadian branch and its subsidiary in India. 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 its U.S. 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 July 31, 2024 and January 31, 2024.
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