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Income Taxes | 12 Months Ended
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Apr. 30, 2025
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of the Company’s net loss before provision for income taxes for the fiscal years ended April 30, 2025, 2024 and 2023 were as follows (in thousands):
| Fiscal Year Ended April 30,
| 2025 |  | 2024 |  | 2023
Domestic | $ | (291,153) |  |  | $ | (282,036) |  |  | $ | (270,280) |
Foreign | 3,427 |  |  | 3,132 |  |  | 2,116 |
Net loss before provision for income taxes | $ | (287,726) |  |  | $ | (278,904) |  |  | $ | (268,164) |
The components of the Company’s provision for income taxes for the fiscal years ended April 30, 2025, 2024 and 2023 were as follows (in thousands):
| Fiscal Year Ended April 30,
| 2025 |  | 2024 |  | 2023
Current expense |  |  |  |  |
Federal | $ | — |  |  | $ | — |  |  | $ | — |
State | 273 |  |  | 293 |  |  | 306 |
Foreign | 670 |  |  | 499 |  |  | 369 |
Total | 943 |  |  | 792 |  |  | 675 |
Deferred expense |  |  |  |  |
Federal | — |  |  | — |  |  | — |
State | — |  |  | — |  |  | — |
Foreign | 33 |  |  | — |  |  | — |
Total | 33 |  |  | — |  |  | — |
Total provision for income taxes | $ | 976 |  |  | $ | 792 |  |  | $ | 675 |
The reconciliation of U.S. federal statutory rate to the Company’s effective tax rate was follows (in thousands):
| Fiscal Year Ended April 30,
| 2025 |  | 2024 |  | 2023
Expected benefit at federal statutory rate | $ | (60,422) |  |  | $ | (58,570) |  |  | $ | (56,314) |
State tax expense—net of federal benefit | 272 |  |  | 292 |  |  | 306 |
Impact of foreign operations | (156) |  |  | (158) |  |  | (75) |
Federal research and development credit | (3,562) |  |  | (3,087) |  |  | (2,489) |
Change in valuation allowance | 64,770 |  |  | 66,556 |  |  | 32,481 |
Stock-based compensation | (1,072) |  |  | (5,001) |  |  | 25,806 |
Meals and entertainment | 228 |  |  | 207 |  |  | 95 |
Other permanent items | 918 |  |  | 553 |  |  | 865 |
Total provision for income taxes | $ | 976 |  |  | $ | 792 |  |  | $ | 675 |
The difference in the Company’s effective tax rate and the U.S. federal statutory tax rate is primarily due to recording a full valuation allowance on the Company’s U.S. deferred tax assets. The components of deferred tax assets and liabilities as of April 30, 2025 and 2024 were as follows (in thousands):
| As of April 30,
| 2025 |  | 2024
Deferred tax assets |  |  |
Accrued payroll | $ | 7,483 |  |  | $ | 5,542 |
Other accruals & reserves | 3,423 |  |  | 5,933 |
Operating lease liability | 13,696 |  |  | 13,433 |
Deferred revenue | 1,354 |  |  | 1,643 |
Net operating losses | 179,554 |  |  | 141,157 |
R&D tax credit | 20,396 |  |  | 15,001 |
Stock based compensation | 15,710 |  |  | 13,263 |
Capitalized R&D expenditure | 93,759 |  |  | 72,140 |
Other | 362 |  |  | 626 |
Gross deferred tax assets | 335,737 |  |  | 268,738 |
Valuation allowance | (320,939) |  |  | (252,682) |
Total deferred tax assets | 14,798 |  |  | 16,056 |
Deferred tax liabilities |  |  |
Prepaid expenses | (1,774) |  |  | (1,986) |
Depreciation | (8,635) |  |  | (9,808) |
Operating lease right-of-use assets | (4,389) |  |  | (4,262) |
Total deferred tax liabilities | (14,798) |  |  | (16,056) |
Net deferred tax assets (liabilities) | $ | — |  |  | $ | — |
In determining the need for a valuation allowance, the Company weighs both positive and negative evidence in the various jurisdictions in which it operates to determine whether it is more likely than not that its deferred tax assets are recoverable. In assessing the ultimate realizability of its net deferred tax assets, the Company considers all available evidence, including cumulative losses since inception and expected future losses and as such, management does not believe it is more likely than not that the deferred tax assets will be realized. Accordingly, a full valuation allowance has been established in the U.S. and no deferred tax assets and related tax benefit have been recognized in the accompanying financial statements. The valuation allowance as of April 30, 2025 and 2024 was $320.9 million and $252.7 million, respectively. The increase of $68.2 million in the Company’s valuation allowance compared to the prior fiscal year was primarily due to an increase in deferred tax assets arising from net operating loss and capitalized R&D expenses. As of April 30, 2025 and 2024, the Company had net operating loss carryforwards for federal income tax purposes of approximately $764.7 million and $599.3 million, respectively. The federal net operating loss carryforwards will expire, if not utilized, beginning in year 2029. Federal research and development tax credit carryforwards of approximately $25.9 million, will expire beginning in 2026 if not utilized. Federal charitable contribution carryforwards of approximately $14.2 million will expire beginning in 2032 if not utilized. Federal capital loss carryforwards of approximately $1.0 million will begin to expire in 2026 if not utilized. In addition, as of April 30, 2025 and 2024, the Company had net operating loss carryforwards for state income tax purposes of approximately $310.7 million and $249.3 million, respectively. The state net operating loss carryforwards will expire, if not utilized, beginning in the year 2029. The Company had state research and development tax credit carryforwards of approximately $18.9 million. The state research and development tax credits do not expire. State capital loss carryforwards of approximately $0.4 million will begin to expire in 2026 if not utilized. The Tax Reform Act of 1986 and similar California legislation impose substantial restrictions on the utilization of net operating losses and tax credit carryforwards if there is a change in ownership as provided by Section 382 of the Internal Revenue Code and similar state provisions. Such a limitation could result in the expiration of the net operating loss carryforwards and tax credits before utilization. A reconciliation of the beginning and ending amount of the Company’s total gross unrecognized tax benefits was as follows (in thousands):
| As of April 30,
| 2025 |  | 2024
Balance as of May 1 | $ | 16,548 |  |  | $ | 11,369 |
Increases for tax positions related to the prior year | 70 |  |  | — |
Increases for tax positions related to the current year | 5,943 |  |  | 5,179 |
Balance as of April 30 | $ | 22,561 |  |  | $ | 16,548 |
As of April 30, 2025, $0.2 million of unrecognized tax benefits, if recognized, would impact the Company’s effective income tax rate. The Company does not expect any unrecognized tax benefits to be recognized within the next 12 months. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. As of April 30, 2025, the Company had immaterial cumulative interest and penalties related to unrecognized tax benefits. As of April 30, 2024, the Company had no cumulative interest and penalties related to unrecognized tax benefits. The Company does not anticipate a significant change in the unrecognized tax benefits over the next 12 months.

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