v3.26.1
Segment Reporting
 3 Months Ended
Apr. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting
Note 12 – Segment Reporting
The Company has one reportable segment which is software and services. The software and services segment provides unified data security solutions to customers primarily under SaaS arrangements. The Company manages the business activities on a consolidated basis. The technology used in the customer arrangements is primarily based on a single software platform that is deployed to and implemented by customers in a similar manner. The types of software and services from which the Company generates revenue are described under the “Revenue Recognition” policy within the “Note 2, Basis of Presentation and Summary of Significant Accounting Policies.”
The Company’s chief operating decision maker is its chief executive officer. The chief operating decision maker assesses performance for the software and services segment and decides how to allocate resources based on net loss that is also reported on the consolidated statements of operations as consolidated net loss. The chief operating decision maker does not use any segment assets measure to assess performance and decide how to allocate resources.
The chief operating decision maker uses net loss and the functional areas as a percentage of revenue to evaluate and decide where to invest within the software and services segment. Net loss is used to monitor budget versus actual results. The chief operating decision maker also uses net loss in competitive analysis by benchmarking to the Company’s competitors. The competitive analysis along with the monitoring of budgeted versus actual results are used in assessing the performance of the segment.
The Company does not have intra-entity sales or transfers.
The following table presents the segment information (in thousands):
Three Months Ended April 30,
20262025
Total revenue
$387,068 $278,481 
Less:
Adjusted subscription cost of revenue (1)
58,194 46,635 
Remaining cost of revenue4,440 5,124 
Remaining research and development expenses78,875 59,883 
Remaining sales and marketing expenses175,278 144,404 
Remaining general and administrative expenses36,734 33,208 
Stock-based compensation expense (2)
73,368 73,540 
Depreciation and amortization10,011 7,818 
Amortization of acquired intangibles
2,802 960 
Interest expense1,070 9,813 
Income tax expense4,637 1,274 
Other items (3)
(590)5,622 
Plus:
Interest income
15,898 7,696 
Segment net loss
(41,853)(102,104)
Consolidated net loss
$(41,853)$(102,104)
(1) Adjusted subscription cost of revenue is subscription cost of revenue adjusted for stock-based compensation expense, amortization of acquired intangibles, and stock-based compensation from amortization of capitalized internal-use software as follows (in thousands):
Three Months Ended April 30,
20262025
Subscription cost of revenue
$66,723 $51,912 
Less:
Stock-based compensation expense4,631 3,968 
Amortization of acquired intangibles2,802 960 
Stock-based compensation from amortization of capitalized internal-use software1,096 349 
Adjusted subscription cost of revenue
$58,194 $46,635 
(2) See Note 9 for stock-based compensation expense by captions.
(3) Other items include foreign currency exchange gains (losses).