v3.22.2.2
Intangible Assets, Net
9 Months Ended
Oct. 31, 2022
Goodwill And Intangible Assets Disclosure [Abstract]  
Intangible Assets, Net

 

5. Intangible Assets, Net

As of October 31, 2022, intangible assets primarily consist of software licenses as well as developed technology, customer relationships and trade name that were acquired from business combinations.    

The Company enters into certain software license agreements with third parties from time-to-time. The software licenses consist of noncancelable on-premise internal-use software and software with alternative use that is to be sold, leased or otherwise marketed as part of a product. The licenses have been capitalized as intangible assets, and the corresponding future payments have been recorded as liabilities at net present value. As of October 31, 2022, $2.3 million was recorded in accrued and other current liabilities and $1.0 million was recorded in other long-term liabilities in the condensed consolidated balance sheets.

 

The components of intangible assets as of October 31, 2022 and January 31, 2022 were as follows:

 

 

 

As of October 31, 2022

 

 

As of January 31, 2022

 

 

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net Carrying Amount

 

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net Carrying Amount

 

 

 

(in thousands)

 

Software licenses

 

$

31,220

 

 

$

(15,571

)

 

$

15,649

 

 

$

22,093

 

 

$

(11,331

)

 

$

10,762

 

Developed technology

 

 

21,200

 

 

 

(3,175

)

 

 

18,025

 

 

 

21,200

 

 

 

(904

)

 

 

20,296

 

Customer relationships

 

 

13,200

 

 

 

(1,467

)

 

 

11,733

 

 

 

13,200

 

 

 

(367

)

 

 

12,833

 

Trade name

 

 

2,500

 

 

 

(357

)

 

 

2,143

 

 

 

2,500

 

 

 

(89

)

 

 

2,411

 

Total intangible assets, net

 

$

68,120

 

 

$

(20,570

)

 

$

47,550

 

 

$

58,993

 

 

$

(12,691

)

 

$

46,302

 

During the nine months ended October 31, 2022, there were approximately $10.0 million of software licenses purchased and approximately $0.9 million of software licenses retired. The amortization expense associated with software licenses was approximately $2.0 million and $1.6 million for the three months ended October 31, 2022 and 2021, respectively, and was approximately $5.2 million and $4.6 million for the nine months ended October 31, 2022 and 2021, respectively. The amortization expense associated with acquisition-related intangible assets, including developed technology, customer relationships and trade name, was approximately $1.2 million and $0.1 million for the three months ended October 31, 2022 and 2021, respectively, and was $3.6 million and $0.1 million for the nine months ended October 31, 2022 and 2021, respectively. The expected future amortization expense related to these intangible assets as of October 31, 2022 is as follows:

 

 

As of

 

 

 

October 31, 2022

 

Fiscal Year

 

(in thousands)

 

2023 (3 months remaining)

 

$

2,448

 

2024

 

 

8,932

 

2025

 

 

7,437

 

2026

 

 

5,930

 

2027

 

 

5,711

 

Thereafter

 

 

17,092

 

Total future amortization expenses:

 

$

47,550

 

Intangible assets are tested for impairment at least annually, in the fourth fiscal quarter, or more frequently if events or changes in circumstances indicate that the assets may be impaired. There were no intangible asset impairments for the three and nine months ended October 31, 2022 and 2021, respectively.