v3.24.3
Fair Value Measurements
 9 Months Ended
Oct. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Assets and liabilities recorded at fair value in the condensed consolidated financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The lowest level of significant input determines the placement of the fair value measurement within the following hierarchical levels:
•Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
•Level 2: Observable inputs, other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
•Level 3: Unobservable inputs that are supported by little or no market activity.
Assets and liabilities measured at fair value on a recurring basis
The following tables present information about the Company’s financial assets and liabilities that are measured at fair value and indicate the fair value hierarchy of the valuation inputs used (in thousands):
October 31, 2024
Level 1Level 2Level 3Total
Assets
  Cash equivalents:
    Money market funds$169,797 $— $— $169,797 
Total cash equivalents169,797 — — 169,797 
  Short-term investments:
    Corporate bonds— 139,052 — 139,052 
    U.S. Treasury securities— 155,218 — 155,218 
    Commercial paper— — — — 
    Agency securities— 12,370 — 12,370 
Total short-term investments— 306,640 — 306,640 
Total$169,797 $306,640 $— $476,437 
January 31, 2024
Level 1Level 2Level 3Total
Assets
Cash equivalents:
Money market funds$79,082 $— $— $79,082 
Commercial paper— 4,497— 4,497
Total cash equivalents79,0824,497— 83,579
Short-term investments:
Corporate bonds— 99,696— 99,696
U.S. Treasury securities— 169,948— 169,948
Commercial paper— 57,755— 57,755
Agency securities— 19,302 — 19,302
Total short-term investments— 346,701 — 346,701 
Total$79,082 $351,198 $— $430,280 
The carrying amounts of certain financial instruments, including cash held in banks, accounts receivable, and accounts payable, approximate fair value due to their short-term maturities and are excluded from the fair value tables above.
It is the Company’s policy to recognize transfers of assets and liabilities between levels of the fair value hierarchy at the end of a reporting period. The Company does not transfer out of Level 3 and into Level 2 until observable inputs become available and reliable. There were no transfers between fair value measurement levels during the three and nine months ended October 31, 2024 or 2023.
Assets and liabilities measured at fair value on a non-recurring basis
See Note 8, Goodwill and Net Intangible Assets, of these notes to our condensed consolidated financial statements for fair value measurements of certain assets and liabilities recorded at fair value on a non-recurring basis.
The Company’s long-lived assets are measured at fair value on a non-recurring basis and are reduced if the assets are determined to be impaired. The fair value of the operating lease right-of-use (“ROU”) assets and associated property and equipment was estimated as of the sublease execution date using an income approach by converting future sublease cash inflows and outflows to a single present value. Estimated cash flows were discounted at a rate commensurate with the inherent risks associated with the asset group to arrive at an estimate of fair value. See Note 11, Leases, of these notes to our condensed consolidated financial statements for further details on the impairment charges we recorded. As a result of the subjective nature of unobservable inputs used, these assets are classified within Level 3 of the fair value hierarchy.