Cash, Cash Equivalents, Restricted Cash, and Investments

6 Months Ended

Aug. 03, 2024

Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract]

Cash, Cash Equivalents, Restricted Cash, and Investments

As of August 3, 2024 and February 3, 2024, cash and cash equivalents consist of cash deposited with banks and money market funds, and all highly liquid investments with an original or remaining maturity of 90 days or less when purchased. As of August 3, 2024 and February 3, 2024, short-term and long-term investments in marketable debt securities consist of U.S. government and agency securities, corporate notes and bonds, and commercial paper.

Restricted cash as of August 3, 2024 and February 3, 2024 consists of letters of credit secured as collateral on the Company’s office space leases.

Total cash, cash equivalents, and restricted cash consist of the following (in thousands):


	As of
	August 3, 2024		February 3, 2024
Cash and cash equivalents	$	159,272	$	135,536
Restricted cash	19,431		19,202
Total cash, cash equivalents, and restricted cash	$	178,703	$	154,738

The following is a summary of the Company’s available-for-sale marketable debt securities recorded within short-term and long-term investments on the condensed consolidated balance sheets (in thousands):


	As of
	August 3, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Investments
Commercial paper	$	96,806	$	—	$	—	$	96,806
Corporate notes and bonds	396,059		1,405		(95)		397,369
U.S. government and agency securities	226,438		541		(88)		226,891
Total investments	$	719,303	$	1,946	$	(183)	$	721,066


	As of
	February 3, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Investments
Commercial paper	$	67,107	$	—	$	—	$	67,107
Corporate notes and bonds	381,511		797		(280)		382,028
U.S. government and agency securities	239,310		241		(394)		239,157
Total investments	$	687,928	$	1,038	$	(674)	$	688,292

The Company included $4.8 million and $4.9 million of accrued interest receivable, net of the allowance for credit losses, in “Prepaid expenses and other current assets” on the condensed consolidated balance sheets as of August 3, 2024 and February 3, 2024, respectively. The Company did not recognize an allowance for credit losses against accrued interest receivable as of August 3, 2024 and February 3, 2024 because such potential losses were not material.

For available-for-sale marketable debt securities with unrealized loss positions, the Company does not intend to sell any of the securities and the Company considers it more likely than not that the Company will hold these securities until a recovery of the cost basis, which may not occur until maturity. The Company did not recognize an allowance for credit losses on these securities as of August 3, 2024 and February 3, 2024 because such potential losses were not material.

As of August 3, 2024, the estimated fair values of available-for-sale marketable debt securities, by remaining contractual maturity, are as follows (in thousands):


	As of
	August 3, 2024
Due within one year	$	513,361
Due in one year to three years	207,705

Total	$	721,066

There were no material realized gains or losses that were reclassified out of accumulated other comprehensive income (loss), either individually or in the aggregate, during the three and six months ended August 3, 2024 and July 29, 2023. There were no material unrealized gains or losses for cash equivalents and available-for-sale marketable debt securities, either individually or in the aggregate, as of August 3, 2024 and February 3, 2024.

Concentrations of Credit Risk—The Company maintains its investments in marketable debt securities with high-quality financial institutions with investment-grade ratings.