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Interest Rate Risk
−Removed: As of January 31, 2024, we had $4.8 billion of cash, cash equivalents, and short-term and long-term investments in a variety of securities, including U.S.
−Removed: government and agency securities, corporate notes and bonds, money market funds, commercial paper, certificates of deposit, and time deposits.
−Removed: In addition, we had $18.2 million of restricted cash primarily due to outstanding letters of credit established in connection with lease agreements for our facilities.
+Added: As of January 31, 2025, we had $5.3 billion of cash, cash equivalents, and short-term and long-term investments in a variety of securities, including money market funds, corporate notes and bonds, U.S.
+Added: government and agency securities, commercial paper, certificates of deposit, and time deposits.
Our cash, cash equivalents, and short-term and long-term investments are held for working capital, capital expenditure, and general corporate purposes, including repurchases of our common stock under our stock repurchase program as well as acquisitions and strategic investments we may make from time to time.
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A hypothetical 100 basis point increase or decrease in interest rates would have resulted in a decrease or increase of $15.3 million in the market value of our cash equivalents, and short-term and long-term investments as of January 31, 2025.
−Removed: As of January 31, 2023, we had $5.1 billion of cash, cash equivalents, and short-term and long-term investments, and a hypothetical 100 basis point increase or decrease in interest rates would have resulted in a decrease of $26.0 million or an increase of $25.9 million, respectively, in the market value.
+Added: As of January 31, 2024, we had $4.8 billion of cash, cash equivalents, and short-term and long-term investments, and a hypothetical 100 basis point increase or decrease in interest rates would have resulted in a decrease or increase of $17.6 million in the market value.
+Added: In September 2024, we issued an aggregate principal amount of $2.3 billion of the Notes.
+Added: Neither the 2027 Notes nor the 2029 Notes bear regular interest, and the principal amount of the Notes will not accrete.
+Added: We may elect or be required to pay special interest on the Notes under certain circumstances in accordance with the terms of the applicable Indenture.
+Added: Accordingly, we do not have economic interest rate exposure on the Notes.
+Added: However, the fair value of each series of the Notes fluctuates when interest rates or market prices of our common stock change.
+Added: We record the Notes at amortized cost on the consolidated balance sheets, and we present the fair value of each series of the Notes for disclosure purpose only.
+Added: In connection with the Notes offering, we entered into the Capped Calls for a cost of $195.5 million.
+Added: The Capped Calls are generally expected to reduce the potential dilution to our common stock upon any conversion of the relevant series of the Notes and/or offset any cash payments we are required to make in excess of the principal amount of converted Notes of such series, with such reduction and/or offset subject to a cap.
+Added: See Note 10, “Convertible Senior Notes,” to our consolidated financial statements included elsewhere in this Annual Report on Form 10-K for further details.
Foreign Currency Exchange Risk
Our reporting currency is the U.S.
−Removed: The functional currency of our foreign subsidiaries is primarily the U.S.
+Added: dollar, and the functional currency of our foreign subsidiaries is primarily the U.S.
The majority of our sales are currently denominated in U.S.
−Removed: dollars, although we also have sales in Euros and, to a lesser extent, in British pounds, Australian dollars, and Brazilian reals.
+Added: dollars, although we also have sales in Euros and, to a lesser extent, in British pounds, Australian dollars, Canadian dollars, and Brazilian reals.
Therefore our revenue is not currently subject to significant foreign currency risk, but that will likely change in the future as we increase sales in these international currencies and enable sales in additional currencies.
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Our consolidated results of operations and cash flows are, therefore, subject to fluctuations due to changes in foreign currency exchange rates and may be adversely affected in the future due to changes in foreign exchange rates.
−Removed: In order to manage our exposure to certain foreign currency exchange risks, during the fiscal year ended January 31, 2024, we entered into foreign currency forward contracts to hedge primarily a portion of our net outstanding monetary assets and liabilities positions and certain intercompany balances denominated in currencies other than the U.S.
−Removed: We also entered into foreign currency forward contracts, which we designate as cash flow hedges, to manage the volatility in cash flows associated with certain forecasted capital expenditures and a portion of our forecasted operating expenses denominated in certain currencies other than the U.S.
+Added: In order to manage our exposure to certain foreign currency exchange risks, we utilize foreign currency forward contracts to hedge primarily a portion of our net outstanding monetary assets and liabilities positions and certain intercompany balances denominated in currencies other than the U.S.
+Added: From time to time, we may also enter into foreign currency forward contracts, which we designate as cash flow hedges, to manage the volatility in cash flows associated with certain forecasted capital expenditures and a portion of our forecasted operating expenses denominated in certain currencies other than the U.S.
All of our foreign currency forward contracts mature within twelve months.
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We did not enter into these forward contracts for trading or speculative purposes.
−Removed: A hypothetical 10% increase or decrease in foreign currency exchange rates would have resulted in a theoretical increase or decrease in operating loss of approximately $25 million and $32 million for the fiscal years ended January 31, 2024 and 2023, respectively.
+Added: A hypothetical 10% increase or decrease in foreign currency exchange rates would have resulted in a theoretical increase or decrease in operating loss of approximately $39 million, $25 million, and $32 million for the fiscal years ended January 31, 2025, 2024, and 2023, respectively.
This sensitivity analysis assumes that all foreign currencies move in the same direction at the same time in the absence of hedging activities.
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dollar makes our platform more expensive for international customers, which may slow down consumption.
−Removed: We do not believe a 10% increase or decrease in the relative value of the U.S.
−Removed: dollar would have had a material impact on our operating results for the fiscal year ended January 31, 2022.
Other Market Risk
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.