Useful lives by asset category are as follows:
Asset CategoryEstimated Useful Life
Computer and equipment
1 to 2 years
Furniture and fixtures
2 to 9 years
Leasehold improvements
Shorter of remaining lease term or estimated useful life
(1 to 13 years)
Property and equipment, net consisted of the following (in thousands):
As of January 31,
20252024
Computers and equipment$23,677 $23,767 
Leasehold improvements31,402 21,756 
Furniture and fixtures7,124 6,640 
Construction in progress9,562 4,560 
Other635 632 
Property and equipment, gross72,400 57,355 
Less: accumulated depreciation(39,660)(33,373)
Property and equipment, net$32,740 $23,982 

About PP&E Disclosures

The PP&E disclosure details a company's physical asset base — land, buildings, machinery, and equipment — along with the depreciation methods and useful life assumptions that determine how these costs flow through the income statement. Capitalization policy thresholds reveal management's judgment on the boundary between expense and asset, directly affecting both reported earnings and asset values.

Key signals: changes in estimated useful lives or depreciation methods can materially shift reported earnings without any operational change. Compare capital expenditures against depreciation expense — when capex consistently trails depreciation, the asset base may be aging and underinvested. Watch for large asset impairments or write-downs that signal overvalued carrying amounts. Asset retirement obligations reveal future environmental or decommissioning costs that are often underappreciated. Compare PP&E intensity (PP&E-to-revenue) against industry peers to assess capital efficiency and competitive positioning.