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Fair Value Measurements
 9 Months Ended
Oct. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Note 4. Fair Value Measurements
The accounting guidance for fair value measurements establishes a three-tier hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows:
Level inputInput definition
Level 1Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets
Level 2Inputs other than quoted prices included within Level 1 that are observable for the asset or liability through corroboration with market data at the measurement date
Level 3Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date
In general, and where applicable, we use quoted prices in active markets for identical assets or liabilities to determine fair value. If quoted prices in active markets for identical assets or liabilities are not available to determine fair value, then we use quoted prices for similar assets and liabilities or inputs other than the quoted prices that are observable either directly or indirectly.
The following tables summarize our fair value hierarchy for our financial assets and liabilities measured at fair value on a recurring basis (in thousands):
October 31, 2024
Level 1Level 2Level 3Total
Cash equivalents:
Money market funds$219,827 $— $— $219,827 
Corporate notes and bonds9,939 — — 9,939 
Total cash equivalents$229,766 $— $— $229,766 
Short-term investments:
U.S. government securities$— $64,676 $— $64,676 
Agency bonds— 12,724 — 12,724 
Corporate bonds— 203,509 — 203,509 
Total short-term investments$— $280,909 $— $280,909 
Liabilities:
Debt redemption liability1
$— $— $20,174 $20,174 
Total liabilities$— $— $20,174 $20,174 
January 31, 2024
Level 1Level 2Level 3Total
Cash equivalents:
Money market funds$207,632 $— $— $207,632 
Corporate bonds3,497 — — 3,497 
Total cash equivalents$211,129 $— $— $211,129 
Short-term investments:
U.S. government securities$— $98,249 $— $98,249 
Agency bonds— 26,206 — 26,206 
Corporate bonds— 103,679 — 103,679 
Commercial paper— 29,986 — 29,986 
Total short-term investments$— $258,120 $— $258,120 
Liabilities:
Warrant liability2
$— $— $11,992 $11,992 
Debt conversion liability1,2
— — 6,848 6,848 
Total liabilities$— $— $18,840 $18,840 
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(1) The debt redemption liability and debt conversion liability are debt derivative liabilities. For more information, see Note 9. Debt.
(2) As of June 27, 2024, we no longer account for the Silver Lake (as defined below) debt conversion or warrants as liabilities since we received stockholder approval on that date to issue the maximum number of shares of Class A Common Stock upon conversion of the notes and exercise of the warrants. As a result, we are no longer required to pay cash in lieu of issuing shares of Class A Common Stock in excess of the limitations under the New York Stock Exchange rules that applied prior to obtaining this stockholder approval. For more information, see Note 9. Debt.
Changes in our Level 3 fair value measurements were as follows (in thousands):
Debt Redemption Liability
Balance, January 31, 2024
$— 
Change in fair value
20,174 
Balance, October 31, 2024
$20,174 
Warrant Liability
Balance, January 31, 2024
$11,992 
Change in fair value through June 27, 2024
9,369 
Reclassification of warrant liability to equity
(21,361)
Balance, October 31, 2024
$— 
Debt Conversion Liability
Balance, January 31, 2024
$6,848 
Change in fair value through June 27, 2024
(428)
Reclassification of debt conversion liability to equity
(6,420)
Balance, October 31, 2024
$— 
Additional information about the debt derivative liabilities (debt redemption liability and debt conversion liability), including the fair value inputs, is included in Note 9. Debt. Additional information about the Warrant liability, including the fair value inputs, is included in Note 10. Warrants to Purchase Shares of Common Stock.
As of October 31, 2024, the net carrying amount of the 2029 Notes, defined in Note 9. Debt, was $368.3 million and the estimated fair value was $314.8 million. The fair value of the 2029 Notes is classified as a Level 3 measurement.
The carrying amounts of certain financial instruments, including cash held in bank accounts, accounts receivable, accounts payable, and accrued expenses, approximate fair value due to their relatively short maturities.