Fair Value Measurements

3 Months Ended

Apr. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 3:  Fair Value Measurements

The Company records its financial assets and liabilities at fair value. The Company estimates and categorizes fair value by applying the following hierarchy:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2: Observable prices based on inputs not quoted in active markets, but are corroborated by market data.

Level 3: Unobservable inputs that are supported by little or no market activity.

The Company’s financial assets that are measured at fair value on a recurring basis by level within the fair value hierarchy were as follows (in thousands):

	Balance as of April 30, 2019						Balance as of January 31, 2019
	Level 1		Level 2		Total		Level 1		Level 2		Total
Assets:
Cash and cash equivalents:
Money market funds	$	4,652	$	—	$	4,652	$	5,951	$	—	$	5,951
Commercial paper		—		1,998		1,998		—		5,429		5,429
Total cash equivalents	$	4,652	$	1,998	$	6,650	$	5,951	$	5,429	$	11,380
Cash						4,722						3,990
Total cash and cash equivalents					$	11,372					$	15,370
Short-term investments:
U.S. government securities	$	8,385	$	1,442	$	9,827	$	11,088	$	—	$	11,088
Corporate debt securities		—		2,798		2,798		—		4,735		4,735
Commercial paper		—		9,988		9,988		—		8,253		8,253
U.S. agency securities		—		996		996		—		990		990
Asset-backed securities		—		2,194		2,194		—		2,187		2,187
Total short-term investments	$	8,385	$	17,418	$	25,803	$	11,088	$	16,165	$	27,253

The Company classifies its cash equivalents and short-term investments within Level 1 or Level 2 because it uses quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value. For the periods presented, the Company had no investments with contractual maturities greater than one year, no Level 3 assets and there were no transfers between levels. The amortized cost of cash equivalents and short-term investments approximated their fair value and there were no material realized or unrealized gains or losses, either individually or in the aggregate. No investments in the Company’s portfolio were other-than-temporarily impaired.

Level 3 liabilities. As of April 30, 2019 and January 31, 2019, the Company had accrued contingent consideration of $0.2 million related to the acquisition of Voxter Communications, Inc. (“Voxter”) that was estimated using an income-based approach. Key inputs included assumptions regarding the achievement of certain performance milestones and discount rates consistent with the level of risk and economy in general. Contingent consideration was classified as a component of accrued expenses on the condensed consolidated balance sheets and changes in fair value, if any, are recorded to general and administrative expenses in the condensed consolidated statements of operations.