v3.24.3
Leases
 9 Months Ended
Oct. 31, 2024
Leases [Abstract]  
Leases Leases
The Company has operating leases primarily related to corporate offices and finance leases related to computer equipment. Our finance lease ROU assets are included in property and equipment, net in the condensed consolidated balance sheets. Our leases have remaining lease terms of less than one year to five years, some of which include options to extend the leases for up to five years.
The components of lease expense recorded in the condensed consolidated statements of operations were as follows (in thousands):
Three Months Ended October 31,Nine Months Ended October 31,
2024202320242023
Operating lease cost$3,048 $4,234 $9,567 $12,163 
Finance lease cost:
Amortization of assets55 18 164 18 
Interest on lease liabilities13 6 43 6 
Short-term lease cost193 97 488 418 
Variable lease cost671 903 2,045 2,576 
Sublease income(912)(573)(2,451)(1,667)
Total lease costs$3,068 $4,685 $9,856 $13,514 
Other information related to leases was as follows (dollars in thousands):
Nine Months Ended October 31,
20242023
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$12,524 $14,507 
Operating cash flows from finance leases43 6 
Financing cash flows from finance leases141 — 
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases558 1,684 
Finance leases— 693 
Right-of-use asset reductions related to operating leases2,832 4,451 
Weighted-average remaining lease term (in years)
Operating leases3.44.1
Finance leases1.92.9
Weighted-average discount rate
Operating leases5.4%5.5%
Finance leases9.9%9.9%
As of October 31, 2024, remaining maturities of lease liabilities were as follows (in thousands):
Operating LeasesFinance Leases
Remainder of Fiscal 2025$4,121 $68 
Fiscal 202614,932 270 
Fiscal 202710,978 225 
Fiscal 20286,511 — 
Fiscal 20295,306 — 
Thereafter1,357 — 
Total lease payments43,205 563 
Less: imputed interest(3,981)(29)
Total$39,224 $534 
As of October 31, 2024, the future total minimum sublease payments to be received were as follows (in thousands):
Sublease Receipts
Remainder of Fiscal 2025$1,011 
Fiscal 20263,428 
Fiscal 20271,559 
Fiscal 2028— 
Fiscal 2029— 
Thereafter— 
Total$5,998 
The Company has vacated certain of its previous corporate offices and entered into sublease agreements for certain fully furnished floors. We evaluated the associated asset groups for impairment, which included the ROU assets and underlying property and equipment on each subleased floor. We compared the expected future undiscounted cash flows to the carrying value and determined that the respective asset groups were not recoverable. We then calculated the fair value based on the present value of the estimated cash flows from each sublease for the remaining lease term and compared it to the carrying value, which resulted in a $3.2 million impairment charge for the nine months ended October 31, 2024. No additional impairment was recorded in the three months ended October 31, 2024. For the three and nine months ended October 31, 2023, we recorded a $1.4 million impairment charge. The impairment charges were included in general and administrative expenses in the condensed consolidated statements of operations.
Leases Leases
The Company has operating leases primarily related to corporate offices and finance leases related to computer equipment. Our finance lease ROU assets are included in property and equipment, net in the condensed consolidated balance sheets. Our leases have remaining lease terms of less than one year to five years, some of which include options to extend the leases for up to five years.
The components of lease expense recorded in the condensed consolidated statements of operations were as follows (in thousands):
Three Months Ended October 31,Nine Months Ended October 31,
2024202320242023
Operating lease cost$3,048 $4,234 $9,567 $12,163 
Finance lease cost:
Amortization of assets55 18 164 18 
Interest on lease liabilities13 6 43 6 
Short-term lease cost193 97 488 418 
Variable lease cost671 903 2,045 2,576 
Sublease income(912)(573)(2,451)(1,667)
Total lease costs$3,068 $4,685 $9,856 $13,514 
Other information related to leases was as follows (dollars in thousands):
Nine Months Ended October 31,
20242023
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$12,524 $14,507 
Operating cash flows from finance leases43 6 
Financing cash flows from finance leases141 — 
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases558 1,684 
Finance leases— 693 
Right-of-use asset reductions related to operating leases2,832 4,451 
Weighted-average remaining lease term (in years)
Operating leases3.44.1
Finance leases1.92.9
Weighted-average discount rate
Operating leases5.4%5.5%
Finance leases9.9%9.9%
As of October 31, 2024, remaining maturities of lease liabilities were as follows (in thousands):
Operating LeasesFinance Leases
Remainder of Fiscal 2025$4,121 $68 
Fiscal 202614,932 270 
Fiscal 202710,978 225 
Fiscal 20286,511 — 
Fiscal 20295,306 — 
Thereafter1,357 — 
Total lease payments43,205 563 
Less: imputed interest(3,981)(29)
Total$39,224 $534 
As of October 31, 2024, the future total minimum sublease payments to be received were as follows (in thousands):
Sublease Receipts
Remainder of Fiscal 2025$1,011 
Fiscal 20263,428 
Fiscal 20271,559 
Fiscal 2028— 
Fiscal 2029— 
Thereafter— 
Total$5,998 
The Company has vacated certain of its previous corporate offices and entered into sublease agreements for certain fully furnished floors. We evaluated the associated asset groups for impairment, which included the ROU assets and underlying property and equipment on each subleased floor. We compared the expected future undiscounted cash flows to the carrying value and determined that the respective asset groups were not recoverable. We then calculated the fair value based on the present value of the estimated cash flows from each sublease for the remaining lease term and compared it to the carrying value, which resulted in a $3.2 million impairment charge for the nine months ended October 31, 2024. No additional impairment was recorded in the three months ended October 31, 2024. For the three and nine months ended October 31, 2023, we recorded a $1.4 million impairment charge. The impairment charges were included in general and administrative expenses in the condensed consolidated statements of operations.