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 input	Input definition
Level 1	Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets
Level 2	Inputs 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 3	Unobservable 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 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	219,827	$	—	$	—	$	219,827
Corporate notes and bonds	9,939		—		—		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 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	207,632	$	—	$	—	$	207,632
Corporate bonds	3,497		—		—		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.