v3.25.2
Fair Value of Financial Instruments
 6 Months Ended
Jul. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments Fair Value of Financial Instruments
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Subsequent changes in fair value of these financial assets and liabilities are recognized in earnings or other comprehensive (loss) income when they occur. When determining the fair value measurements for assets and liabilities which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurement or assumptions that market participants would use in pricing the assets or liabilities, such as inherent risk, transfer restrictions, and credit risk.
The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:
Level 1 inputs are based on quoted prices in active markets for identical assets or liabilities. 
Level 2 inputs are based on observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. 
Level 3 inputs are based on unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities, and typically reflect management's estimates of assumptions that market participants would use in pricing the asset or liability.
The Company's assets and liabilities measured at fair value on a recurring basis, by level, within the fair value hierarchy are as follows:
July 31, 2025
(in thousands) Level 1 Level 2 Level 3 Total
Assets:
Money market funds$47,350 $— $— $47,350 
Commercial paper— 29,889 — 29,889 
U.S. treasury securities— 29,868 — 29,868 
Total assets $47,350 $59,757 $— $107,107 
Liabilities:
Contingent consideration(1)
$— $— $23,700 $23,700 
Total liabilities$— $— $23,700 $23,700 
January 31, 2025
(in thousands)Level 1Level 2Level 3Total
Assets:
Money market funds $36,371 $— $— $36,371 
Total assets$36,371 $— $— $36,371 
Liabilities:
Contingent consideration$— $— $45,000 $45,000 
Total liabilities$— $— $45,000 $45,000 
(1)    As of July 31, 2025, contingent consideration includes $9.7 million classified as current and $14.0 million classified as non-current.
The Company’s cash equivalents and marketable securities for the periods presented were valued using quoted market prices or alternative pricing sources and models utilizing observable market inputs and were classified as Level 1 or Level 2, accordingly.
The Company measured its contingent consideration associated with the Hearsay acquisition, on a recurring basis using significant unobservable inputs, classified as Level 3.
Contingent Consideration
The Company records contingent consideration resulting from a business combination at its fair value on the acquisition date. The Company generally determines the fair value of contingent consideration using the Real Options Method that employs a Monte Carlo simulation model. Each reporting period thereafter, these obligations are revalued and changes in their fair values are recorded within general and administrative expenses within the condensed consolidated statements of operations and comprehensive income (loss). Changes in the fair value of the contingent consideration can result from changes in assumed discount periods and rates, and from changes pertaining to the estimated or actual achievement of the defined milestones. Significant judgment is employed in determining the appropriateness of these assumptions as of the acquisition date and for each subsequent period. Accordingly, future business and economic conditions, as well as changes in any of the assumptions described above, can materially impact the fair value and corresponding changes in fair value of the contingent consideration the Company records in any given period.
In connection with the Hearsay acquisition, the estimated fair value of the contingent consideration incorporates projected ARR values inclusive of revenue synergies and growth rates, as well as other key inputs. The key inputs as of July 31, 2025 are outlined below:
Volatility13.5%
Revenue beta0.28
Expected timing of paymentFY 2026 - FY 2027
Discount rate
9.31% - 9.34%
A rollforward of the fair value of the contingent consideration liability for the six months ended July 31, 2025 is as follows:
(in thousands)
Balance as of January 31, 2025
$45,000 
Measurement period adjustment300 
Change in fair value (1)
(21,600)
Balance as of July 31, 2025
$23,700 
(1)    Changes in fair value during the six months ended July 31, 2025, were primarily driven by a decline in the estimated achievement of the defined milestones.