In accordance with the authoritative guidance on fair value measurements and disclosures under U.S. GAAP, the Company discloses and recognizes the fair value of its assets and liabilities using a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). The guidance establishes three levels of the fair value hierarchy as follows:

Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active; and

Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and considers factors specific to the asset or liability.

The following tables present the Company’s investments, which consist of cash equivalents and available-for-sale marketable securities, that are measured at fair value on a recurring basis as of August 31, 2024 and November 30, 2023 (in thousands):


August 31, 2024	Level	Amortized cost		Unrealized gain		Unrealized loss		Estimated fair value
Money market funds	Level 1	$	59,239	$	—	$	—	$	59,239
U.S. treasury securities	Level 1	344,725		333		(3)		345,055
U.S. government agency securities	Level 2	25,744		24		(4)		25,764
Long-term marketable securities:
U.S. treasury securities	Level 1	1,984		14		—		1,998
U.S. government agency securities	Level 2	7,494		1		(21)		7,474
Total		$	439,186	$	372	$	(28)	$	439,530
Included in cash and cash equivalents		$	81,042	$	8	$	—	$	81,050
Included in marketable securities, current		$	348,666	$	349	$	(7)	$	349,008
Included in marketable securities, non-current		$	9,478	$	15	$	(21)	$	9,472


November 30, 2023	Level	Amortized cost		Unrealized gain		Unrealized loss		Estimated fair value
Money market funds	Level 1	$	44,187	$	—	$	—	$	44,187
U.S. treasury securities	Level 1	160,991		61		(29)		161,023
Corporate debt securities	Level 2	3,487		—		(56)		3,431
U.S. government agency securities	Level 2	69,389		5		(567)		68,827
Long-term marketable securities:
U.S. government agency securities	Level 2	7,490		—		(69)		7,421
Total		$	285,544	$	66	$	(721)	$	284,889
Included in cash and cash equivalents		$	44,187	$	—	$	—	$	44,187
Included in marketable securities, current		$	233,867	$	66	$	(652)	$	233,281
Included in marketable securities, non-current		$	7,490	$	—	$	(69)	$	7,421

The accrued interest receivable related to the Company’s marketable securities was $0.8 million as of both August 31, 2024, and November 30, 2023, and was included in prepaid expenses and other current assets on the condensed consolidated balance sheet. Long-term marketable securities held by the Company generally mature within two years from the balance sheet date.

The Company classifies its money market funds and U.S. treasury securities, which are valued based on quoted market prices in active markets with no valuation adjustment, as Level 1 assets within the fair value hierarchy.

The Company classifies its marketable securities in corporate debt securities and U.S. government agency securities as Level 2 assets within the fair value hierarchy. The fair values of these marketable securities are estimated by taking into consideration valuations obtained from third-party pricing services. The pricing services utilize industry standard valuation models, including both income- and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs include reported trades of and broker/dealer quotes on the same or similar securities, issuer credit spreads, benchmark securities, prepayment/default projections based on historical data and other observable inputs. There were no transfers of financial instruments between valuation levels during the three and nine months ended August 31, 2024 and 2023.