Operating Leases

6 Months Ended

Jul. 31, 2024

Note 6: Operating Leases

The Company leases its headquarters located in Sunnyvale, California, as well as office space and data center facilities in several locations under non-cancelable operating lease agreements, with expiration dates through fiscal 2033.

Supplemental balance sheet information related to leases was as follows (in thousands):


		As of
	July 31, 2024		January 31, 2024
Assets
Operating lease right-of-use assets	$	15,833	$	17,041
Total leased assets	$	15,833	$	17,041
Liabilities
Short-term operating lease liabilities	$	3,710	$	3,742
Long-term operating lease liabilities		12,635		13,676
Total lease liabilities	$	16,345	$	17,418

Weighted-average remaining lease term		5.6 years		6.0 years
Weighted-average discount rate		6.3%		6.2%

Operating lease right-of-use assets and long-term operating lease liabilities are included on the face of the consolidated balance sheet. Short-term operating lease liabilities are presented within accrued expenses and other current liabilities.

The Company incurred total lease costs in its condensed consolidated statements of operations of $1.6 million and $1.5 million for the three months ended July 31, 2024 and 2023, respectively, and $3.2 million and $2.8 million for the six months ended July 31, 2024 and 2023, respectively. Additionally, in the third quarter of fiscal 2023, the Company recorded facilities consolidation charges of $1.4 million to general and administrative expense, in connection with the leased office facilities assumed during the second fiscal quarter of 2023 in the Company's acquisition of Junction Networks, Inc. ("OnSIP"), which the Company subsequently determined were not needed to support the future growth of its business. In the second quarter of fiscal 2024, upon the lessor's sale of the property, the Company wrote off the remaining $1.0 million lease liability related to the lease as facilities consolidation gain in general and administrative expense in the condensed consolidated statements of operations.

Supplemental cash flow information related to leases was as follows (in thousands):


		Three Months Ended					Six Months Ended
	July 31, 2024			July 31, 2023		July 31, 2024			July 31, 2023
Cash payments for operating leases	$		958	$	1,131	$		1,909	$	2,028
Right-of-use assets recognized in exchange for new operating lease obligations	$		—	$	—	$		310	$	4,902

As of July 31, 2024, maturities of operating lease liabilities were as follows (in thousands):


Fiscal Years Ending January 31,	July 31, 2024
2025 remainder	$	1,935
2026		3,810
2027		3,969
2028		2,720
2029		2,742
Thereafter		4,630
Total future minimum lease payments		19,806
Less: imputed interest		(3,461)
Present value of lease liabilities	$	16,345