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Fair Value Measurements
 3 Months Ended
Apr. 30, 2021
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company measures its financial assets and liabilities at fair value each reporting period using a fair value hierarchy that prioritizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value, as follows:
Level 1—Valuations based on observable inputs that reflect quoted prices for identical assets or liabilities in active markets.
Level 2—Valuations based on inputs that are directly or indirectly observable in the marketplace.
Level 3—Valuations based on unobservable inputs that are supported by little or no market activity.
The following table presents information about the Company’s financial assets that are required to be measured or disclosed at fair value using the above input categories:
As of April 30, 2021
Level 1Level 2Level 3Total
(in thousands)
Money market funds$189,759 $— $— $189,759 
U.S. Treasury securities— 57,873 — 57,873 
Commercial paper— 43,361 — 43,361 
Corporate debt securities— 129,698 — 129,698 
Total$189,759 $230,932 $— $420,691 
Included in cash equivalents$189,759 
Included in investments$230,932 
As of January 31, 2021
Level 1Level 2Level 3Total
(in thousands)
Money market funds$139,870 $— $— $139,870 
U.S. Treasury securities14,988 45,026 — 60,014 
Commercial paper— 34,598 — 34,598 
Corporate debt securities— 141,488 — 141,488 
Total$154,858 $221,112 $— $375,970 
Included in cash equivalents$154,858 
Included in investments$221,112 
The Company’s assets that are measured by management at fair value on a recurring basis are generally classified within Level 1 or Level 2 of the fair value hierarchy.
The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. As of April 30, 2021 and January 31, 2021, the Company’s Level 2 securities were priced by pricing vendors. These pricing vendors utilize observable market information in pricing these securities or, if specific prices are not available for these securities, use other observable inputs like market transactions involving identical or comparable securities.
The carrying amounts of certain financial instruments, including cash held in banks, accounts receivable and accounts payable approximate fair value due to their short-term maturities and are excluded from the fair value table above.
Convertible Senior Notes
As of April 30, 2021, the estimated fair value of the Notes was approximately $371.6 million. The fair value was determined based on the quoted price for the Notes in an inactive market on the last trading day of the reporting period and is considered as Level 2 in the fair value hierarchy.