v3.26.1
Fair Value of Financial Instruments
 6 Months Ended
Jul. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments Fair Value of Financial Instruments
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, 2026
(in thousands) Level 1 Level 2 Level 3 Total
Assets:
Money market funds$24,473 $— $— $24,473 
Total assets $24,473 $— $— $24,473 
Liabilities:
Contingent consideration
$— $— $6,800 $6,800 
Total liabilities$— $— $6,800 $6,800 
January 31, 2026
(in thousands)Level 1Level 2Level 3Total
Assets:
Money market funds $36,227 $— $— $36,227 
Commercial paper29,895 29,895 
U.S. treasury securities— 29,876 — 29,876 
Total assets$36,227 $59,771 $— $95,998 
Liabilities:
Contingent consideration$— $— $8,200 $8,200 
Total liabilities$— $— $8,200 $8,200 
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. 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, 2026 are outlined below:
Volatility12.9%
Revenue beta0.29
Expected timing of paymentFY 2027
Discount rate
11.99% - 12.00%
A rollforward of the fair value of the contingent consideration liability for the six months ended July 31, 2026 is as follows:
(in thousands)
Balance as of January 31, 2026
$8,200 
Change in fair value
10 
Payments made in the period
(1,410)
Balance as of July 31, 2026
$6,800