Commitments and Contingencies
Standby Letters of Credit
As of January 31, 2025 and 2024, the Company had several letters of credit outstanding related to its operating leases totaling $21.6 million and $21.4 million, respectively. The letters of credit expire at various dates between 2025 and 2034.
Purchase Commitments
In November 2024, the Company entered into a 60-month contract with Amazon Web Services (“AWS”) for hosting-related services, which replaced the Company’s prior agreement with AWS and terminated the remaining commitments under the prior agreement. Pursuant to the terms of the November 2024 contract with AWS, the Company is required to spend $255.0 million over the term of the contract between December 2024 to November 2029. The commitment may be offset by up to $4.2 million in credits, of which $3.7 million are subject to the Company meeting certain conditions of the agreement. As of January 31, 2025, the Company had purchase commitments remaining of $249.5 million under this contract, which are not reflected on the Company’s consolidated balance sheet as of January 31, 2025. Future commitments under this contract as of January 31, 2025, are as follows (in thousands):
| | | | | |
| Fiscal year ending January 31, | Purchase Commitments |
| 2026 | $ | 36,481 | |
| 2027 | 45,000 | |
| 2028 | 54,000 | |
| 2029 | 56,000 | |
| 2030 and thereafter | 58,000 | |
| Total remaining purchase commitments | $ | 249,481 | |
As of January 31, 2025, the Company had purchase commitments remaining of $22.2 million with various parties primarily for software-based services which are not reflected on the Company’s consolidated balance sheets.
Indemnification Agreements
The Company has entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against any liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of the individual.
Additionally, in the ordinary course of business, the Company enters into agreements of varying scope and terms pursuant to which it agrees to indemnify customers, vendors, lessors, business partners, and other parties with respect to certain matters, including, but not limited to, losses arising out of the breach of such agreements, services to be provided by the Company, or from intellectual property infringement claims made by third parties. For the years ended January 31, 2025, 2024, and 2023 no demands have been made upon the Company to provide indemnification under such agreements, and there are no claims that the Company is aware of that could have a material adverse effect on its financial position, results of operations, or cash flows.
Contingencies
From time to time in the normal course of business, the Company may be subject to various claims and other legal matters arising in the ordinary course of business. As of January 31, 2025 and 2024, the Company believes that none of its current legal proceedings would have a material adverse effect on its financial position, results of operations, or cash flows.