Goodwill and Acquired Intangible Assets

The changes in the carrying amount of goodwill for the fiscal years ended January 31, 2025 and 2024 are as follows (in thousands):


Balance as of January 31, 2023	$	118,862
Goodwill resulting from business combination	18,539
Balance as of January 31, 2024	$	137,401
Goodwill resulting from business combination	—
Balance as of January 31, 2025	$	137,401

Intangible assets subject to amortization consist of the following as of the dates indicated (in thousands, except weighted average remaining useful life):


	January 31, 2025
	Cost		Accumulated Amortization		Net		Weighted Average Remaining Useful Life (Years)
Customer relationships	$	24,800	$	(10,248)	$	14,552	5.9
Developed technology	31,200		(24,927)		6,273		3.1
Trademarks	500		(460)		40		0.8
Assembled workforce	2,527		(2,527)		—		0.0
Other intangibles, net	$	59,027	$	(38,162)	$	20,865	5.1

	January 31, 2024
	Cost		Accumulated Amortization		Net		Weighted Average Remaining Useful Life (Years)
Customer relationships	$	24,800	$	(7,768)	$	17,032	6.9
Developed technology	31,200		(16,128)		15,072		2.7
Trademarks	500		(410)		90		1.8
Assembled workforce	2,527		(2,105)		422		0.3
Other intangibles, net	$	59,027	$	(26,411)	$	32,616	4.9

For the fiscal years ended January 31, 2025, 2024 and 2023, amortization expense related to intangible assets was $11.8 million, $11.5 million, and $10.2 million, respectively.

As of January 31, 2025, expected amortization expense in future periods is as follows (in thousands):


Year ending January 31,
2026	$	5,217
2027	3,760
2028	3,760
2029	3,493
2030	2,480
Thereafter	2,155
Total expected future amortization expense	$	20,865

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

PagerDuty, Inc. Goodwill & Intangibles Disclosure

About Goodwill & Intangibles Disclosures

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