Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

v3.25.1
Income Taxes (Tables)
 12 Months Ended
Jan. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Domestic and Foreign Component of Loss Before Provision for Income Taxes
The domestic and foreign component of the income (loss) before provision for income taxes was as follows:
Year Ended January 31,
(in thousands) 2025 2024 2023
Domestic $ 18,464  $ 32,033  $ (70,072)
Foreign 29,828  28,489  22,604 
Total $ 48,292  $ 60,522  $ (47,468)
Schedule of Components of Income Tax Expense (Benefit)
The (benefit) provision for income taxes consisted of the following:
Year Ended January 31,
(in thousands) 2025 2024 2023
Current tax provision:
Federal $ —  $ —  $ — 
State 1,834  207  69 
Foreign 12,875  11,788  8,039
Total current tax provision
 $ 14,709  $ 11,995  $ 8,108 
Deferred tax (benefit) expense:
Federal $ (69,072) $ 94  $ 92 
State (17,795) 108  142 
Foreign (1,159) (3,078) (68)
Total deferred tax (benefit) expense
 (88,026) (2,876) 166 
Total (benefit) provision for income taxes
 $ (73,317) $ 9,119  $ 8,274 
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective tax rate was as follows:
Year Ended January 31,
2025 2024 2023
U.S. federal statutory rate 21.0  % 21.0  % 21.0  %
Effect of:
State taxes, net of U.S. federal benefit 2.6  2.4  2.2 
Foreign taxes in excess of the U.S. rate differential 1.4  1.6  (3.7)
Foreign withholding taxes
 6.3  6.1  (1.8)
Non-deductible expenses 4.2  0.3  (11.4)
Non-deductible officer's compensation 7.9  16.3  (2.7)
Changes in valuation allowance (199.5) (31.3) (15.9)
Excess tax benefits related to shared based compensation (4.1) (3.6) 4.4 
Global Intangible Low Taxed Income (GILTI) inclusion —  0.3  (12.7)
Impact of disregarded entity elections
 7.0  —  — 
Other 1.4  2.0  3.1 
Effective tax rate
 (151.8) % 15.1  % (17.5) %
Schedule of Deferred Tax Assets and Liabilities
The components of deferred tax assets and liabilities were as follows:
January 31,
(in thousands) 2025 2024
Deferred tax assets:
Net operating loss carryforward $ 90,177  $ 112,671 
Accrued compensation
 6,911  1,866 
Accrued commissions 4,847  1,406 
Fixed assets and intangibles
 3,486  882 
Allowance for doubtful accounts 2,137  1,294 
Deferred revenue 2,012  337 
Stock-based compensation 8,800  4,962 
Lease liabilities
 11,719  1,731 
Other 8,751  — 
Total deferred tax assets 138,840  125,149 
Less valuation allowance (705) (86,203)
Deferred tax assets, net of valuation allowance 138,135  38,946 
Deferred tax liabilities
Fixed assets and intangibles
 —  (876)
Capitalized commission costs (34,834) (33,379)
Lease right-of-use
 (10,638) (1,525)
Other (2,329) (332)
Total deferred tax liabilities (47,801) (36,112)
Net deferred tax assets(1)
$ 90,334  $ 2,834 
(1) Deferred tax assets of $90.4 million and $4.3 million are recorded within other non-current assets on the consolidated balance sheets as of January 31, 2025 and 2024, respectively.
Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of the beginning and ending balance of total gross unrecognized tax benefits for the year ended January 31, 2025:
Year Ended January 31,
(in thousands) 2025 2024 2023
Balance at beginning of period $ 2,436  $ 1,728  $ 1,539 
Tax positions taken during a prior year:
Gross decreases —  —  (288)
Tax positions taken during the current year:
Gross increases 666  708  477 
Balance at end of period $ 3,102  $ 2,436  $ 1,728