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Income Taxes
 3 Months Ended
Apr. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes

12. Income Taxes

The following table provides details of income taxes for the periods indicated:

 

 

 

Three Months Ended April 30,

 

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

Loss before income taxes

 

$

(34,256

)

 

$

(10,412

)

Provision for income taxes

 

 

1,646

 

 

 

410

 

Effective tax rate

 

(4.8)%

 

 

(3.9)%

 

 

The Company recorded an income tax provision of $1.6 million and $0.4 million for the three months ended April 30, 2023 and 2022, respectively. The increase in income tax expense for the three months ended April 30, 2023 was primarily due to a decrease in the proportion of profits generated in lower tax jurisdictions and a decrease in tax benefits from excess stock-based compensation deductions.

The Company files federal and state income tax returns in the United States and in various foreign jurisdictions. The Company’s fiscal years 2020 through 2023 are generally open and subject to potential examination by U.S. federal tax authorities. The Company’s fiscal years 2019 through 2023 are generally open and subject to potential examination by state tax authorities. The Company’s fiscal years 2016 to 2023 remain open to examination by foreign tax authorities. Fiscal years outside of the normal statute of limitations remain open to audit by tax authorities due to tax attributes generated in those earlier years, which have been carried forward and may be audited in subsequent years when utilized.

The Company regularly assesses the likelihood of adverse outcomes resulting from potential tax examinations to determine the adequacy of its provision for income taxes. These assessments can require considerable estimates and judgments. As of April 30, 2023, the gross amount of unrecognized tax benefits was approximately $21.9 million. If the estimates of income tax liabilities prove to be less than the ultimate assessment, then a further charge to expense could be required. If events occur, and the payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities could result in tax benefits being recognized in the period in which the Company determines the liabilities are no longer necessary. The Company does not anticipate significant changes to its uncertain tax positions during the next twelve months.