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Income Taxes (Tables) | 12 Months Ended
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Jan. 31, 2025
Income Tax Disclosure [Abstract] |
Schedule of Domestic and Foreign Components of Pre-tax Loss | The domestic and foreign components of pre-tax income (loss) for fiscal 2025, 2024 and 2023 were as follows:
| Year Ended January 31,
| 2025 |  | 2024 |  | 2023
| (dollars in millions)
Domestic | $ | 28 |  |  | $ | (360) |  |  | $ | (834) |
Foreign | 18 |  |  | 23 |  |  | 33 |
Income (loss) before provision for income taxes | $ | 46 |  |  | $ | (337) |  |  | $ | (801) |
Schedule of Components of Provision for (Benefit from) Income Taxes | The components of the provision for income taxes for fiscal 2025, 2024 and 2023 were as follows:
| Year Ended January 31,
| 2025 |  | 2024 |  | 2023
| (dollars in millions)
Current: |  |  |  |  |
Federal | $ | 5 |  |  | $ | 2 |  |  | $ | — |
State | 2 |  |  | 3 |  |  | 2 |
Foreign | 9 |  |  | 6 |  |  | 5 |
Total current provision for income taxes | 16 |  |  | 11 |  |  | 7 |
Deferred: |  |  |  |  |
Foreign | 2 |  |  | 7 |  |  | 7 |
Total deferred provision for income taxes | 2 |  |  | 7 |  |  | 7 |
Total provision for income taxes | $ | 18 |  |  | $ | 18 |  |  | $ | 14 |
Schedule of Effective Income Tax Rate Reconciliation | The following is a reconciliation of the statutory federal income tax rate to the Company’s effective tax rate for fiscal 2025, 2024 and 2023:
| Year Ended January 31,
| 2025 |  | 2024 |  | 2023
Tax at federal statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal benefit | 3.7 |  |  | 3.8 |  |  | 3.6 |
Change in valuation allowance | 27.4 |  |  | (5.6) |  |  | (9.9) |
Stock-based compensation | 14.5 |  |  | (28.4) |  |  | (11.9) |
Effect of foreign operations | 8.1 |  |  | (0.7) |  |  | (1.0) |
Research and development credits | (51.7) |  |  | 5.3 |  |  | 2.6 |
Non-deductible expenses | 19.2 |  |  | (1.5) |  |  | (6.2) |
Provision to return true-up | (7.1) |  |  | 0.2 |  |  | — |
Unrecognized tax benefits | 7.9 |  |  | — |  |  | — |
Other, net | (4.0) |  |  | 0.6 |  |  | 0.2 |
Effective tax rate | 39.0 | % |  | (5.3) | % |  | (1.6) | %
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences and related deferred tax assets and liabilities as of January 31, 2025 and 2024 were as follows:
| As of January 31,
| 2025 |  | 2024
| (dollars in millions)
Deferred tax assets: |  |  |
Net operating loss carryforwards | $ | 702 |  |  | $ | 716 |
Capitalized research expenditures | 335 |  |  | 268 |
Stock-based compensation | 41 |  |  | 41 |
Operating lease liabilities | 31 |  |  | 36 |
Other reserves and accruals | 24 |  |  | 21 |
Research and development and other credits | 146 |  |  | 125 |
Total deferred tax assets | 1,279 |  |  | 1,207 |
Valuation allowance | (1,144) |  |  | (1,087) |
Total deferred tax assets, net | 135 |  |  | 120 |
Deferred tax liabilities: |  |  |
Deferred commissions | (99) |  |  | (67) |
Other deferred tax liabilities | (15) |  |  | (5) |
Operating lease right-of-use assets | (20) |  |  | (21) |
Depreciation and amortization | (14) |  |  | (35) |
Total deferred tax liabilities | (148) |  |  | (128) |
Net deferred tax liabilities | $ | (13) |  |  | $ | (8) |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of beginning and ending amount of unrecognized tax benefit was as follows:
| Year Ended January 31,
| 2025 |  | 2024 |  | 2023
| (dollars in millions)
Gross amount of unrecognized tax benefits as of the beginning of the year | $ | 49 |  |  | $ | 43 |  |  | $ | 37 |
Additions based on tax positions related to a prior year | 4 |  |  | — |  |  | 1 |
Additions based on tax positions related to current year | 12 |  |  | 7 |  |  | 7 |
Reductions based on tax positions taken in a prior year | — |  |  | (1) |  |  | (2) |
Gross amount of unrecognized tax benefits as of the end of the year | $ | 65 |  |  | $ | 49 |  |  | $ | 43 |

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