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Income Taxes | 12 Months Ended
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Jan. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of the income tax provision were as follows (in thousands):
| Year Ended January 31,
| 2021 |  | 2022 |  | 2023
Current income provision: |  |  |  |  |
State | 32 |  | 5 |  | 135
Foreign | 361 |  | 80 |  | 586
| 393 |  | 85 |  | 721
Deferred income tax provision: |  |  |  |  |
Foreign | 16 |  | (546) |  | 458
Provision for (benefit from) income taxes | $ | 409 |  | $ | (461) |  | $ | 1,179
Total income tax expense differed from the amounts computed by applying the U.S. federal income tax rate to income before income tax expense as a result of the following (in thousands):
| Year Ended January 31,
| 2021 |  | 2022 |  | 2023
Tax benefit at U.S. federal statutory rate(1) | $ | (17,687) |  |  | $ | (21,540) |  |  | $ | (21,918) |
State income taxes, net of federal tax benefit | (4,689) |  |  | (4,896) |  |  | (5,325) |
Non-deductible expenses | 85 |  |  | 157 |  |  | 3,168 |
Foreign tax differential | 351 |  |  | (752) |  |  | 7 |
Stock-based compensation | (4,263) |  |  | (15,045) |  |  | 10,730 |
Research and development credits | (2,561) |  |  | (2,579) |  |  | (1,839) |
Change in valuation allowance | 29,160 |  |  | 44,287 |  |  | 16,260 |
Foreign withholding taxes | — |  |  | — |  |  | 82 |
Other | 13 |  |  | (93) |  |  | 14 |
Provision for (benefit from) income taxes | $ | 409 |  |  | $ | (461) |  |  | $ | 1,179 |
(1) The statutory tax rate used in this analysis was 21% for the years ended January 31, 2021, 2022 and 2023. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities were as follows (in thousands):
| As of January 31,
| 2022 |  | 2023
Deferred tax assets: |  |  |
Net operating loss carryforwards | $ | 316,381 |  |  | $ | 313,405 |
Stock based compensation | 11,641 |  |  | 9,584 |
Accruals and other reserves | 3,880 |  |  | 3,760 |
Research and development credit carryforwards | 20,397 |  |  | 22,236 |
163(j) interest limitation | 10,578 |  |  | 12,421 |
174 Expense | — |  |  | 17,242 |
Foreign acquisition costs | 35 |  |  | 36 |
Lease liability | 4,964 |  |  | 4,984 |
Deferred Revenue | — |  |  | 904 |
Other | 1,624 |  |  | 839 |
Gross deferred tax assets | 369,500 |  |  | 385,411 |
Valuation allowance | (352,834) |  |  | (369,094) |
Total deferred tax assets, net of valuation allowance | 16,666 |  |  | 16,317 |
Deferred tax liabilities: |  |  |
Contract acquisition costs | (8,924) |  |  | (9,014) |
Capitalized software | (3,645) |  |  | (3,893) |
Right-of-use assets | (4,010) |  |  | (3,751) |
Basis difference in intangible assets | (313) |  |  | (351) |
Total deferred tax liabilities | (16,892) |  |  | (17,009) |
Net deferred tax liabilities | $ | (226) |  |  | $ | (692) |
In assessing whether deferred tax assets should be recog nized, the Company considered whether it is more-likely-than-not that some portion or all of the deferred tax assets would be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company considered the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. While limited losses may be utilized due to capitalization of research and development expense, the Company determined it was more-likely-than-not that its domestic deferred tax assets would not be realized as of January 31, 2022 and 2023 and, accordingly, recorded a full valuation allowance. Net deferred tax liabilities are included in other liabilities, noncurrent on the consolidated balance sheets. As of January 31, 2023, the Company had federal and state NOLs available to offset future taxable income, if any, of $1,166.2 million and $1,344.7 million, respectively. The federal NOLs will begin to expire in 2032. The state NOLs will expire depending upon the various rules in the states in which the Company operates. Full realization of the NOLs is dependent on generating sufficient taxable income prior to their expiration. The ability to realize the NOLs and other deferred tax assets could also be limited by previous or future changes in ownership in accordance with rules in Internal Revenue Code Sections 382 and 383. As of January 31, 2023, the Company also had unused federal and state research and development tax credits of $22.8 million and $8.7 million, respectively. A small portion of the federal and state credits will expire depending upon the various rules in the states in which the Company operates. As of January 31, 2023, the Company also had foreign tax credits of $0.4 million which begin to expire in 2024. During the fiscal years ended years ended January 31, 2021, 2022 and 2023, the aggregate changes in the total gross amount of unrecognized tax benefits were as follows (in thousands):
| Year Ended January 31,
| 2021 |  | 2022 |  | 2023
Beginning balance | $ | 5,430 |  |  | $ | 6,333 |  |  | $ | 7,236 |
Increase in unrecognized tax benefits taken in prior years | 939 |  |  | 914 |  |  | 663 |
Decrease in unrecognized tax benefits related to current year | (36) |  |  | (11) |  |  | (31) |
| $ | 6,333 |  |  | $ | 7,236 |  |  | $ | 7,868 |
The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate is zero due to the valuation allowance. Any tax legislation impacting the taxability of the Company may change the unrecognized tax benefits over the next twelve months. The Company files U.S. federal, U.S. state, and foreign tax returns and is subject to examination by various taxing authorities for all open tax years. The Company is not currently under audit by the Internal Revenue Service or any other tax authority. The Company paid income taxes of $0.8 million, $0.6 million and $0.3 million during the years ended January 31, 2021, 2022 and 2023, respectively.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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