v3.26.1
ACQUISITIONS
 3 Months Ended
Apr. 30, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
ACQUISITIONS ACQUISITIONS
Fiscal 2026 Acquisitions
Observo
On September 22, 2025, we completed the acquisition of Observo, Inc. (Observo), a provider of AI-ready data pipeline technology, to complement our existing product offerings and expand our data and security information and event management (SIEM) business portfolio. We acquired 100% of the shares of Observo for total consideration of approximately $130.2 million in cash and 5,263,156 shares of our Class A common stock.
Prompt
On September 5, 2025, we completed the acquisition of Prompt Security, Inc. (Prompt), a provider of security solutions focused on the generative and agentic artificial intelligence (AI) security space, to enhance our overall product offerings. We acquired 100% of the shares of Prompt for a total consideration of approximately $133.6 million in cash, 1,555,099 shares of our Class A common stock, and 415,109 assumed options.
Preliminary Purchase Price Allocation and Acquisition Accounting
The acquisitions completed during fiscal 2026 were accounted for as business combinations, and the purchase prices were allocated to the assets acquired and liabilities assumed based on their respective fair values as of the acquisition dates, inclusive of measurement period adjustments recorded during the period, as presented below (in thousands). The purchase price allocations are preliminary and subject to change as we complete the valuation of certain assets acquired and liabilities assumed.
Observo
Prompt
Total
Consideration:
Cash$130,197 $133,614 $263,811 
Common stock
53,590 17,196 70,786 
Assumed options— 854 854 
Holdback subject to indemnification claims1,458 8,559 10,017 
Fair value of total consideration transferred$185,245 $160,223 $345,468 
— 
Goodwill$151,763 $131,271 $283,034 
Intangible assets33,500 21,600 55,100 
Net assets (liabilities) assumed
(18)7,352 7,334 
Total identifiable net assets and liabilities$185,245 $160,223 $345,468 
During the three months ended April 30, 2026, we released $1.0 million of indemnification holdback relating to the Observo acquisition. In addition, in connection with a post-closing adjustment for the Prompt acquisition, we cancelled 1,952 shares of our Class A common stock previously issued and adjusted the indemnification holdback by $0.2 million.
Goodwill is primarily attributable to the assembled workforce and anticipated synergies arising from the integration. The goodwill acquired from acquisitions in fiscal 2026 is not tax deductible in local jurisdictions.
The following table presents the preliminary details of the identified intangible assets acquired (in thousands, except years):
Fair ValueUseful LifeAmortization classification
(in thousands)(in years)
Observo
Developed technology$30,000 5
Cost of revenue
Customer relationships
3,500 9
Sales and marketing
Total Observo intangible assets acquired
$33,500 
Prompt
Developed technology$20,000 2
Cost of revenue
Customer relationships
1,600 2
Sales and marketing
Total Prompt intangible assets acquired
$21,600 
Total intangible assets acquired
$55,100 
We incurred $1.9 million and $2.7 million of transaction expenses related to Observo and Prompt acquisitions, respectively. These costs were recorded as general and administrative expenses in our consolidated statements of operations.