v3.26.1
Fair Value of Financial Instruments
 3 Months Ended
Apr. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments

Note 3. Fair Value of Financial Instruments

Fair Value Measurements of Assets and Liabilities Measured at Fair Value on a Recurring Basis

We measure our financial assets and liabilities at fair value at each reporting period using a fair value hierarchy which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. We define fair value as the exchange price that would be received from selling an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value:

•
Level 1—Observable inputs are unadjusted quoted prices in active markets for identical assets or liabilities.
•
Level 2—Observable inputs are quoted prices for similar assets and liabilities in active markets or inputs other than quoted prices which are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments.
•
Level 3—Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. These inputs are based on our own assumptions used to measure assets and liabilities at fair value and require significant management judgment or estimation. There were no level 3 financial assets or liabilities for the periods presented.

Financial assets and liabilities subject to the fair value disclosure requirements were as follows (in thousands):

 

 

 

April 30, 2026

 

 

 

Level 1

 

 

Level 2

 

 

Total

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

Money market funds

 

$

53,952

 

 

$

—

 

 

$

53,952

 

Short-term investments:

 

 

 

 

 

 

 

 

 

U.S. treasury securities

 

 

76,353

 

 

 

—

 

 

 

76,353

 

Corporate bonds

 

 

—

 

 

 

21,854

 

 

 

21,854

 

Other current assets:

 

 

 

 

 

 

 

 

 

Forward contracts designated as cash flow hedges

 

 

—

 

 

 

6,881

 

 

 

6,881

 

Total current assets

 

 

130,305

 

 

 

28,735

 

 

 

159,040

 

Other assets, non-current:

 

 

 

 

 

 

 

 

 

Forward contracts designated as cash flow hedges

 

 

—

 

 

 

202

 

 

 

202

 

Total assets

 

$

130,305

 

 

$

28,937

 

 

$

159,242

 

 

 

 

 

 

 

 

 

 

 

Other current liabilities:

 

 

 

 

 

 

 

 

 

Forward contracts designated as cash flow hedges

 

$

—

 

 

$

623

 

 

$

623

 

Forward contracts not designated as cash flow hedges

 

 

—

 

 

 

1,479

 

 

 

1,479

 

Total current liabilities

 

 

—

 

 

 

2,102

 

 

 

2,102

 

Other liabilities, non-current:

 

 

 

 

 

 

 

 

 

Forward contracts designated as cash flow hedges

 

 

 

 

 

208

 

 

 

208

 

Total liabilities

 

$

—

 

 

$

2,310

 

 

$

2,310

 

 

 

 

 

January 31, 2026

 

 

 

Level 1

 

 

Level 2

 

 

Total

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

Money market funds

 

$

68,169

 

 

$

—

 

 

$

68,169

 

Short-term investments:

 

 

 

 

 

 

 

 

 

U.S. treasury securities

 

 

102,932

 

 

 

—

 

 

 

102,932

 

Other current assets:

 

 

 

 

 

 

 

 

 

Forward contracts designated as cash flow hedges

 

 

—

 

 

 

6,150

 

 

 

6,150

 

Total current assets

 

 

171,101

 

 

 

6,150

 

 

 

177,251

 

Other assets, non-current:

 

 

 

 

 

 

 

 

 

Forward contracts designated as cash flow hedges

 

—

 

 

 

855

 

 

 

855

 

Total assets

 

$

171,101

 

 

$

7,005

 

 

$

178,106

 

 

 

 

 

 

 

 

 

 

 

Other current liabilities:

 

 

 

 

 

 

 

 

 

Forward contracts designated as cash flow hedges

 

$

—

 

 

$

802

 

 

$

802

 

Forward contracts not designated as cash flow hedges

 

 

—

 

 

 

906

 

 

 

906

 

Total current liabilities

 

 

—

 

 

 

1,708

 

 

 

1,708

 

Other liabilities, non-current:

 

 

 

 

 

 

 

 

 

Forward contracts designated as cash flow hedges

 

 

—

 

 

 

185

 

 

 

185

 

Total liabilities

 

$

—

 

 

$

1,893

 

 

$

1,893

 

There were no material differences between the estimated fair value and amortized cost of our cash equivalents and short-term investments.

As of April 30, 2026, remaining contractual maturities of our cash equivalents and short-term investments were as follows (in thousands):

 

 

 

April 30, 2026

 

Due within one year

 

$

123,504

 

Due between one to five years

 

 

28,655

 

Total

 

$

152,159

 

As of April 30, 2026, we do not consider any portion of the unrealized losses to be credit losses.

Fair Value Measurements of Other Financial Instruments

In September 2024, we issued $460.0 million aggregate principal amount of 1.50% convertible senior notes due September 15, 2029 (the “2029 Convertible Notes”). The 2029 Convertible Notes are recorded at principal less unamortized issuance costs in the condensed consolidated balance sheets but are measured at fair value on a quarterly basis for disclosure purposes. The estimated fair values of the 2029 Convertible Notes, which we have classified as a Level 2 financial instrument, was determined using observable market prices. As of April 30, 2026 and January 31, 2026, the estimated fair value of the 2029 Convertible Notes was $433.2 million and $434.4 million, respectively.