v3.26.1
Segment Reporting
 6 Months Ended
Jul. 31, 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 July 31,Six Months Ended July 31,
2026202520262025
Total revenue
$427,260 $309,860 $814,328 $588,341 
Less:
Adjusted subscription cost of revenue (1)
64,196 50,249 122,390 96,884 
Remaining cost of revenue13,715 4,186 18,155 9,310 
Remaining research and development expenses87,716 65,318 166,591 125,201 
Remaining sales and marketing expenses186,101 150,878 361,379 295,282 
Remaining general and administrative expenses33,168 36,112 69,902 69,320 
Stock-based compensation expense (2)
101,018 88,457 174,386 161,997 
Depreciation and amortization10,055 7,900 20,066 15,718 
Amortization of acquired intangibles
3,193 1,223 5,995 2,183 
Interest expense1,104 5,241 2,174 15,054 
Income tax expense5,482 1,837 10,119 3,111 
Other items (3)
(280)6,581 (870)12,203 
Plus:
Interest income
16,431 12,193 32,329 19,889 
Segment net loss
(61,777)(95,929)(103,630)(198,033)
Consolidated net loss
$(61,777)$(95,929)$(103,630)$(198,033)
(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 July 31,Six Months Ended July 31,
2026202520262025
Subscription cost of revenue
$74,139 $56,024 $140,862 $107,936 
Less:
Stock-based compensation expense5,576 4,143 10,207 8,111 
Amortization of acquired intangibles3,193 1,223 5,995 2,183 
Stock-based compensation from amortization of capitalized internal-use software1,174 409 2,270 758 
Adjusted subscription cost of revenue
$64,196 $50,249 $122,390 $96,884 
(2) See Note 9 for stock-based compensation expense by captions.
(3) Other items include foreign currency exchange gains (losses).