On May 6, 2025, the Company announced a strategic plan (the “Strategic Plan”) to evolve its operations to yield greater efficiencies as the Company continues to scale its business with focus and discipline to meet its goals. The Strategic Plan resulted in a reduction of roles representing approximately 500 positions, or 5%, of the Company’s global workforce.

The actions associated with the Strategic Plan were substantially completed as of January 31, 2026. For the fiscal year ended January 31, 2026, the Company recorded charges related to the Strategic Plan of $44.8 million, which consisted of $19.9 million related to severance payments and employee benefits, $17.9 million related to stock-based compensation expense, and $7.0 million for non-employee costs.

Charges related to the Strategic Plan included in the consolidated statement of operations are as follows (in thousands):


	Year Ended January 31, 2026
Subscription cost of revenue	$	3,442
Professional services cost of revenue	3,271
Sales and marketing	8,975
Research and development	16,573
General and administrative	12,516
Total	$	44,777

The following table summarizes the activities related to the Strategic Plan for the fiscal year ended January 31, 2026 (in thousands):


	Year Ended January 31, 2026
	Severance and Related Costs		Non-Employee Costs		Total
Liability, beginning of the period	$	—	$	—	$	—
Charges	37,784		6,993		44,777
Payments	(19,858)		(6,957)		(26,815)
Non-cash items	(17,896)		—		(17,896)
Liability, end of the period	$	30	$	36	$	66

As of January 31, 2026, the liability associated with the Strategic Plan is included in accrued payroll and benefits and accounts payable on the consolidated balance sheets.