Fair Value Measurements

12 Months Ended

Nov. 30, 2023

In accordance with the authoritative guidance on fair value measurements and disclosures under U.S. GAAP, the Company discloses and recognizes the fair value of its assets and liabilities using a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). The guidance establishes three levels of the fair value hierarchy as follows:

Level 1—Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date;

Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active; and

Level 3—Inputs that are unobservable.

Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and considers factors specific to the asset or liability.

The following tables present the Company’s investments, which consist of cash equivalents and available-for-sale marketable securities, that are measured at fair value on a recurring basis as of November 30, 2023 and 2022 (in thousands):


November 30, 2023	Level	Amortized cost		Unrealized gain		Unrealized loss		Estimated fair value
Money market funds	Level 1	$	44,187	$	—	$	—	$	44,187
U.S. treasury securities	Level 1	160,991		61		(29)		161,023
Corporate debt securities	Level 2	3,487		—		(56)		3,431
U.S. government agency securities	Level 2	69,389		5		(567)		68,827
Long-term marketable securities:
U.S. government agency securities	Level 2	7,490		—		(69)		7,421
Total		$	285,544	$	66	$	(721)	$	284,889
Included in cash and cash equivalents		$	44,187	$	—	$	—	$	44,187
Included in marketable securities, current		$	233,867	$	66	$	(652)	$	233,281
Included in marketable securities, non-current		$	7,490	$	—	$	(69)	$	7,421


November 30, 2022	Level	Amortized cost		Unrealized gain		Unrealized loss		Estimated fair value
Money market funds	Level 1	$	59,452	$	—	$	—	$	59,452
U.S. treasury securities	Level 1	75,322		—		(1,120)		74,202
Corporate debt securities	Level 2	81,026		—		(1,279)		79,747
U.S. government agency securities	Level 2	8,998		—		(135)		8,863
Corporate commercial paper	Level 2	74,896		—		—		74,896
Foreign government securities	Level 2	7,051		—		(92)		6,959
Long-term marketable securities:
U.S. treasury securities	Level 1	5,779		—		(98)		5,681
Corporate debt securities	Level 2	3,492		—		(217)		3,275
U.S. government agency securities	Level 2	56,301		1		(1,379)		54,923
Total		$	372,317	$	1	$	(4,320)	$	367,998
Included in cash and cash equivalents		$	59,452	$	—	$	—	$	59,452
Included in marketable securities, current		$	247,293	$	—	$	(2,626)	$	244,667
Included in marketable securities, non-current		$	65,572	$	1	$	(1,694)	$	63,879

The following table summarizes the available-for-sale marketable securities in an unrealized loss position for which an allowance for credit losses has not been recorded as of November 30, 2023 and 2022, aggregated by investment category and length of time in a continuous unrealized loss position (in thousands):


	Less than 12 months				Greater than 12 months				Total
November 30, 2023	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
U.S. treasury securities	$	46,694	$	(4)	$	5,936	$	(25)	$	52,630	$	(29)
Corporate debt securities	—		—		3,431		(56)		3,431		(56)
U.S. government agency securities	23,599		(108)		48,805		(528)		72,404		(636)
Total	$	70,293	$	(112)	$	58,172	$	(609)	$	128,465	$	(721)


	Less than 12 months				Greater than 12 months				Total
November 30, 2022	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
U.S. treasury securities	$	40,747	$	(377)	$	39,136	$	(841)	$	79,883	$	(1,218)
Corporate debt securities	14,257		(152)		68,765		(1,344)		83,022		(1,496)
U.S. government agency securities	45,395		(663)		15,391		(851)		60,786		(1,514)
Foreign government securities	—		—		6,959		(92)		6,959		(92)
Total	$	100,399	$	(1,192)	$	130,251	$	(3,128)	$	230,650	$	(4,320)

The accrued interest receivable related to the Company’s marketable securities was $0.8 million and $1.1 million as of November 30, 2023 and 2022, respectively, and was included in prepaid expenses and other current assets on the consolidated balance sheet. Long-term marketable securities held by the Company generally mature within two years from the balance sheet date.

The Company classifies its money market funds and U.S. treasury securities, which are valued based on quoted market prices in active markets with no valuation adjustment, as Level 1 assets within the fair value hierarchy.

The Company classifies its marketable securities in corporate debt securities, U.S. government agency securities, corporate commercial paper and foreign government securities as Level 2 assets within the fair value hierarchy. The fair values of these marketable securities are estimated by taking into consideration valuations obtained from third-party pricing services. The pricing services utilize industry standard valuation models, including both income- and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs include reported trades of and broker/dealer quotes on the same or similar securities, issuer credit spreads, benchmark securities, prepayment/default projections based on historical data and other observable inputs. There were no transfers of financial instruments between valuation levels during the years ended November 30, 2023 and 2022.

As of November 30, 2023 and 2022, the unrealized losses for available-for-sale marketable securities were non-credit related, and the Company does not intend to sell the securities that were in an unrealized loss position, nor will it be required to sell those securities before recovery of their amortized cost basis, which may be maturity. As of November 30, 2023 and 2022, no allowance for credit losses for the Company’s marketable securities was recorded. During the years ended November 30, 2023 and 2022, the Company did not recognize any impairment losses related to marketable securities.