v3.25.1
Fair Value Measurements
 3 Months Ended
Apr. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements
4.
Fair Value Measurements

Fair Value Measurements

Financial assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following (in thousands):

 

 

 

As of April 30, 2025

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

404,234

 

$

—

 

 

$

—

 

 

$

404,234

 

Total in cash and cash equivalents

 

$

404,234

 

 

$

—

 

 

$

—

 

 

$

404,234

 

 

 

 

As of January 31, 2025

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

427,792

 

 

$

—

 

 

$

—

 

 

$

427,792

 

Total in cash and cash equivalents

 

$

427,792

 

 

$

—

 

 

$

—

 

 

$

427,792

 

 

The money market funds are considered Level 1 as fair value is based on market prices for identical assets.

As of April 30, 2025 and January 31, 2025, the fair value of the Company’s financial instruments included in current assets and current liabilities (including restricted cash, accounts receivable, accounts payable, and accrued expenses) approximated carrying value due to the short-term nature of such items.

As of April 30, 2025, the fair value of the Company’s outstanding debt approximated its carrying value. The fair value of debt was estimated using Level 2 inputs, based on interest rates available for debt with terms and maturities similar to the Company’s debt.

There were no changes to the Company’s valuation techniques used to measure the fair value of assets and liabilities on a recurring basis during the three months ended April 30, 2025. There were no transfers of assets from Level 2 to Level 3 during the three months ended April 30, 2025 and 2024.

Contingent consideration related to the acquisitions of Aspire LLC (“Aspire”) and the GIS Dynamics LLC (“GIS”) were subject to measurement at fair value on a recurring basis using Level 3 measurements. The contingent liabilities associated with these acquisitions were satisfied as of July 31, 2024 and there was no new activity in the three months ended April 30, 2025. The following represents the activity for the contingent liability:

 

 

 

Three Months Ended April 30, 2024

 

Balance at beginning of period

 

$

435

 

Change in fair value of contingent consideration

 

 

(30

)

Payment of contingent consideration

 

 

(240

)

Balance at end of period

 

$

165

 

 

Certain assets, including goodwill, intangible assets and other long-lived assets are also subject to measurement at fair value on a nonrecurring basis using Level 3 measurements, but only when they are deemed to be impaired as a result of an impairment review. For the three months ended April 30, 2025 and 2024, the Company recorded an impairment of long-lived assets of $8.0 million and $20.1 million, respectively, to reduce the carrying value to estimated fair value (see Note 5).