Sprinklr Inc

Previous wording

Our customers include global enterprises across a broad array of industries and geographies, as well as marketing agencies and government departments along with non-profit and educational institutions. Our customers are located in over 80 countries, and our AI powered CXM platform recognizes over 150 languages. We define our large customers as customers with greater than or equal to $1.0 million in subscription revenue on a trailing 12-month basis, as of the period presented. As of July 31, 2024, we had 145 large customers, compared to 120 as of July 31, 2023.

Current wording

Our customers include global enterprises across a broad array of industries and geographies, as well as marketing agencies and government departments along with non-profit and educational institutions. Our customers are located in over 80 countries, and our AI powered CXM platform recognizes over 150 languages. We define our large customers as customers with greater than or equal to $1.0 million in subscription revenue on a trailing 12-month basis, as of the period presented. As of October 31, 2024, we had 147 large customers, compared to 123 as of October 31, 2023.

Previous wording

Remaining Performance Obligation (“RPO”) represents contracted revenue that has not yet been recognized and includes deferred revenue and amounts that will be invoiced and recognized in future periods. Current RPO (“cRPO”) represents contracted revenue that has not yet been recognized and includes deferred revenue and amounts that will be invoiced and recognized in the next 12 months. As of July 31, 2024, our RPO expected to be recognized as revenue was $887.1 million and our cRPO was $557.8 million.

Current wording

Remaining Performance Obligation (“RPO”) represents contracted revenue that has not yet been recognized and includes deferred revenue and amounts that will be invoiced and recognized in future periods. Current RPO (“cRPO”) represents contracted revenue that has not yet been recognized and includes deferred revenue and amounts that will be invoiced and recognized in the next 12 months. As of October 31, 2024, our RPO expected to be recognized as revenue was $906.3 million and our cRPO was $545.6 million.

Previous wording

We believe that net dollar expansion rate (“NDE”) is an indicator of the value that our platform delivers to customers. We calculate NDE to measure our ability to retain and expand subscription revenue from our existing customers. NDE compares our subscription revenue from the same set of customers across comparable periods and reflects customer renewals, expansion, contraction and churn. We calculate NDE by dividing (i) subscription revenue in the trailing 12-month period from those customers who were on our platform during the most recent prior 12-month period by (ii) subscription revenue from the same customers in the preceding prior 12-month period. This calculation is net of upsells, contraction, cancellation or expansion during the period but excludes subscription revenue from new customers. Our NDE, on a trailing 12-month basis, was 110.8% and 120.0% for the 12-month periods ending July 31, 2024 and 2023, respectively. The decrease year-over-year was driven by a combination of elevated churn exacerbated by the current macroeconomic environment.

Current wording

We believe that net dollar expansion rate (“NDE”) is an indicator of the value that our platform delivers to customers. We calculate NDE to measure our ability to retain and expand subscription revenue from our existing customers. NDE compares our subscription revenue from the same set of customers across comparable periods and reflects customer renewals, expansion, contraction and churn. We calculate NDE by dividing (i) subscription revenue in the trailing 12-month period from those customers who were on our platform during the most recent prior 12-month period by (ii) subscription revenue from the same customers in the preceding prior 12-month period. This calculation is net of upsells, contraction, cancellation or expansion during the period but excludes subscription revenue from new customers. Our NDE, on a trailing 12-month basis, was 107.3% and 117.7% for the 12-month periods ending October 31, 2024 and 2023, respectively. The decrease year-over-year was driven by a combination of elevated churn exacerbated by the current macroeconomic environment.

Previous wording

Unfavorable conditions in the economy both in the United States and abroad may negatively affect the growth of our business and our results of operations. For example, macroeconomic events, including fluctuations in inflation, the U.S. Federal Reserve raising interest rates, recent bank closures, and the Russia-Ukraine and Israel-Hamas wars (including an escalation or geographical expansion of these conflicts), have led to economic uncertainty globally. Historically, during periods of economic uncertainty and downturns, businesses may slow spending on information technology, which may impact our business and our customers’ businesses. While we have experienced growing inflationary pressures on the cost of wages, rent and data, the net result of inflationary impacts and our efforts to mitigate these impacts have not been material to us during the periods included in this report. In addition, general economic weakness may lead to longer collection cycles for payments due from our customers and an increase in customer bad debt, as well as restructuring initiatives and associated expenses, and customers and potential customers may require extended financial concessions.

Current wording

Unfavorable conditions in the economy both in the United States and abroad may negatively affect the growth of our business and our results of operations. For example, macroeconomic events, including fluctuations in inflation and interest rates and the Russia-Ukraine and Israel-Hamas wars (including an escalation or geographical expansion of these conflicts), have led to economic uncertainty globally. Historically, during periods of economic uncertainty and downturns, businesses may slow spending on information technology, which may impact our business and our customers’ businesses. While we have experienced growing inflationary pressures on the cost of wages, rent and data, the net result of inflationary impacts and our efforts to mitigate these impacts have not been material to us during the periods included in this report. In addition, general economic weakness may lead to longer collection cycles for payments due from our customers and an increase in customer bad debt, as well as restructuring initiatives and associated expenses, and customers and potential customers may require extended financial concessions.

Previous wording

We expect our general and administrative expense to increase in absolute dollars as we continue to grow our business. We also anticipate that we will incur additional costs for employees and third-party consulting services, which may cause our general and administrative expense to fluctuate as a percentage of revenue from period to period.

Current wording

We expect that our general and administrative expense may increase in absolute dollars as we continue to grow our business. We also anticipate that we will incur additional costs for employees and third-party consulting services, which may cause our general and administrative expense to fluctuate as a percentage of revenue from period to period.

Previous wording

Provision for income taxes consists primarily of income taxes related to foreign and U.S. jurisdictions in which we conduct business. Our annual estimated effective tax rate differed from the U.S. federal statutory rate primarily due to a full valuation allowance related to our U.S. deferred tax assets, partially offset by U.S. current state taxes and foreign tax rate differential on non-U.S. income and discrete items relating to releases of valuation allowances in certain foreign jurisdictions.

Current wording

Provision for income taxes consists primarily of income taxes related to foreign and U.S. jurisdictions in which we conduct business. Our annual estimated effective tax rate differed from the U.S. federal statutory rate primarily due to a full valuation allowance related to our U.S. deferred tax assets, partially offset by U.S. current state taxes and foreign tax rate differential on non-U.S. income and discrete items relating to releases of valuation allowances in certain foreign jurisdictions. To the extent that sufficient positive evidence becomes available, we may release all or a portion of our valuation allowance in one or more future periods. A release of the valuation allowance, if any, would result in the recognition of certain deferred tax assets and an associated income tax benefit for the period in which such release is recorded. The exact timing and amount of the valuation allowance release are dependent on the basis of the level of sustained U.S. profitability that we are able to actually achieve, as well as the amount of tax deductible stock compensation, which is driven by the share price of our common stock, and macroeconomic conditions, among other factors.

Previous wording

The increase in subscription revenue was primarily due to increases in (i) revenue from existing customers driven by the purchase of additional quantities of current subscription solutions and additional add-on solutions within our platform and (ii) demand for our solutions from new customers.

Current wording

The increase in subscription revenue was primarily due to increased revenue from existing customers driven by the purchase of additional quantities of current subscription solutions and additional add-on solutions within our platform, as well as demand for our solutions from new customers. Such growth was partially offset by certain existing customers purchasing fewer quantities of current subscription solutions within our platform, partially driven by macroeconomic challenges.

Previous wording

The increase in professional services revenue was primarily due to increased implementations and managed services performed compared to the prior year period.

Current wording

The increase in professional services revenue was primarily due to continued growth in both implementations and managed services related to Contact Center as a Service (“CCaaS”) delivery capabilities.

Previous wording

The increase in costs of subscription revenue was primarily due to (i) higher costs related to third-party cloud infrastructure necessary to meet our increased customer demand, which included a $5.1 million increase in our data and hosting costs and (ii) a $0.8 million increase in the amortization of capitalized research and development costs.

Current wording

The increase in costs of subscription revenue was primarily due to (i) higher costs related to third-party cloud infrastructure necessary to meet our increased customer demand, which included a $4.6 million increase in our data and hosting costs and (ii) an $0.8 million increase in the amortization of capitalized research and development costs.

Previous wording

The increase in costs of professional services revenue was primarily due to (i) a $3.0 million increase in subcontractor costs as a result of higher partner delivery costs and (ii) higher personnel-related costs of $0.8 million as a result of increased headcount.

Current wording

The increase in costs of professional services revenue was primarily due to (i) a $3.6 million increase in subcontractor costs as a result of higher partner delivery costs associated with increased professional services revenue and (ii) higher personnel-related costs of $1.4 million as a result of increased headcount.

Previous wording

Gross margin for subscription decreased by 2 percentage points, primarily driven by increased costs associated with third-party cloud infrastructure and data. Gross margin for professional services decreased by 4 percentage points as we increased our investment in CCaaS delivery personnel in the first half of fiscal year 2025 to support future growth in our CCaaS solution.

Current wording

Gross margin for subscription decreased by two percentage points, primarily driven by increased costs associated with third-party cloud infrastructure and data. Gross margin for professional services decreased by six percentage points, as we increased our investment in CCaaS delivery personnel in fiscal year 2025 to support future growth in our CCaaS solution.

Previous wording

The increase in general and administrative expense was primarily due to increases in (i) provision for credit losses of $9.1 million, which was primarily due to increased reserves for certain customers that we deemed to be uncollectible accounts, and (ii) personnel costs of $3.1 million, driven by increased stock compensation expense, primarily related to new grants during fiscal year 2025, as well as higher general and administrative headcount.

Current wording

The increase in general and administrative expense was primarily due to (i) an increase in consulting costs of $4.7 million primarily related to strategic projects and (ii) an increase personnel costs of $3.3 million, driven by higher general and administrative headcount, as well as increased stock compensation expense, primarily related to new grants during fiscal year 2025. These increases were partially offset by a decrease in professional fees of $1.2 million, as a result of lower legal-related costs.

Previous wording

The increase in other income, net was primarily attributable to a $1.4 million increase in interest income from our money market and short-term investment accounts as a result of higher interest rates and higher average balances in our money market and short-term investment accounts.

Current wording

The decrease in other income, net was primarily due to the net effect of (i) a $2.3 million decrease in interest income from our money market and short-term investment accounts as a result of lower average balances in these accounts and lower average interest rates and (ii) an increase of $1.5 million associated with net foreign currency gains.

Previous wording

The increase in subscription revenue was primarily due to increases in (i) revenue from existing customers driven by the purchase of additional quantities of current subscription solutions and additional add-on solutions within our platform and (ii) demand for our solutions from new customers.

Current wording

The increase in subscription revenue was primarily due to increased revenue from existing customers driven by the purchase of additional quantities of current subscription solutions and additional add-on solutions within our platform, as well as demand for our solutions from new customers. Such growth was partially offset by certain existing customers purchasing fewer quantities of current subscription solutions within our platform, partially driven by macroeconomic challenges.

Previous wording

The increase in professional services revenue was primarily due to increased implementations and managed services performed compared to the prior year period.

Current wording

The increase in professional services revenue was primarily due to continued growth in both implementations and managed services related to CCaaS delivery capabilities.

Previous wording

The increase in costs of subscription revenue was primarily due to (i) higher costs related to third-party cloud infrastructure necessary to meet our increased customer demand, which included an $8.7 million increase in our data and hosting costs and (ii) a $1.7 million increase in the amortization of capitalized research and development costs.

Current wording

The increase in costs of subscription revenue was primarily due to (i) higher costs related to third-party cloud infrastructure necessary to meet our increased customer demand, which included a $13.3 million increase in our data and hosting costs and (ii) a $2.5 million increase in the amortization of capitalized research and development costs.

Previous wording

The increase in costs of professional services revenue was primarily due to (i) a $5.2 million increase in subcontractor costs as a result of higher partner delivery costs and (ii) higher personnel-related costs of $2.4 million as a result of increased headcount.

Current wording

The increase in costs of professional services revenue was primarily due to (i) an $8.8 million increase in subcontractor costs as a result of higher partner delivery costs associated with increased professional services revenue and (ii) higher personnel-related costs of $3.8 million as a result of increased headcount.

Previous wording

Gross margin for subscription decreased by 2 percentage points, primarily driven by increased costs associated with third-party cloud infrastructure and data. Gross margin for professional services increased by 1 percentage point, largely driven by the timing of our continued investment in Contact Center as a Service (“CCaaS”).

Current wording

Gross margin for subscription decreased by two percentage points, primarily driven by increased costs associated with third-party cloud infrastructure and data. Gross margin for professional services decreased by five percentage points as we increased our investment in CCaaS delivery personnel in fiscal year 2025 to support future growth in our CCaaS solution.

Previous wording

The increase in research and development expense was primarily due to an increase in software subscription costs of $0.9 million.

Current wording

The increase in research and development expense was primarily due to an increase in software subscription costs of $1.1 million.

Previous wording

The decrease in sales and marketing expense was primarily due to the net impact of (i) a decrease in personnel-related costs of $1.9 million, which was a result of lower headcount after the completion of our restructuring in May 2024, (ii) an increase of $1.5 million as a result of higher marketing-related expenses, and (iii) a $1.1 million decrease associated with severance and related activities as a result of fewer sales and marketing employees being included in the restructuring implemented during the six months ended July 31, 2024 than the restructuring program implemented during the prior year.

Current wording

The increase in sales and marketing expense was primarily due to (i) a $2.0 million increase in marketing-related expenses and (ii) an increase in travel and related costs of $1.3 million. These increases were partially offset by (i) a $2.0 million decrease in severance and related costs as a result of fewer sales and marketing employees being included in the restructuring implemented during the nine months ended October 31, 2024 than the restructuring program implemented during the prior year and (ii) a decrease in personnel-related costs of $0.6 million primarily due to lower stock-based compensation expense as a result of reduced sales and marketing headcount.

Previous wording

The increase in general and administrative expense was primarily due to (i) a $10.0 million increase in provision for credit losses, which was primarily due to increased reserves for certain customers that we deemed to be uncollectible accounts, and (ii) a $6.2 million increase in personnel-related costs driven by increased stock compensation expense, primarily related to new grants during fiscal year 2025, as well as higher general and administrative headcount.

Current wording

The increase in general and administrative expense was primarily due to (i) a $9.5 million increase in personnel-related costs driven by increased stock compensation expense, primarily related to new grants during fiscal year 2025, as well as higher general and administrative headcount, (ii) a $9.0 million increase in provision for credit losses due to increased reserves for certain customers that we deemed to be uncollectible accounts and (iii) a $6.7 million increase in consulting costs primarily related to strategic projects.

Previous wording

The decrease in other income, net was primarily attributable to a $0.9 million decrease in interest income from our money market and short-term investment accounts as a result of lower average balances in our money market and short-term investment accounts, partially offset by higher interest rates.

Current wording

The increase in other income, net was primarily attributable to a $2.0 million increase in net foreign currency gains, partially offset by a $0.8 million decrease in interest income from our money market and short-term investment accounts as a result of lower average balances in these accounts, partially offset by higher average interest rates.

Previous wording

The increase in provision for income taxes was primarily related to the impact of customer withholding taxes and state taxes recorded in the six months ended July 31, 2024, as well as the impact of a $3.3 million valuation allowance release in Japan and Brazil during the six months ended July 31, 2023.

Current wording

The increase in provision for income taxes was primarily related to the impact of customer withholding taxes and state taxes recorded in the nine months ended October 31, 2024, as well as the impact of a $3.3 million valuation allowance release in Japan and Brazil during the nine months ended October 31, 2023.

Previous wording

(2)Includes $0.1 million and $0.9 million of employer payroll tax related to stock-based compensation for the three months ended July 31, 2024 and 2023, respectively, and $0.9 million and $1.7 million of employer payroll tax related to stock-based compensation expense for the six months ended July 31, 2024 and 2023, respectively.

Current wording

(2)Includes $0.1 million and $0.3 million of employer payroll tax related to stock-based compensation for the three months ended October 31, 2024 and 2023, respectively, and $1.1 million and $1.9 million of employer payroll tax related to stock-based compensation expense for the nine months ended October 31, 2024 and 2023, respectively.

Previous wording

As of July 31, 2024, our principal sources of liquidity were $119.1 million of cash and cash equivalents and $349.3 million of highly liquid marketable securities. We believe that our existing cash and cash equivalents, marketable securities and cash from operations will be sufficient to meet our working capital needs, capital expenditures and financing obligations for at least the next 12 months and over the long-term. The majority of our cash is held in the United States and we do not anticipate a need to repatriate cash held outside of the United States. Further, it is our intent to indefinitely reinvest these funds outside the United States, and, therefore, we have not provided for any United States income taxes.

Current wording

As of October 31, 2024, our principal sources of liquidity were $93.2 million of cash and cash equivalents and $383.4 million of highly liquid marketable securities. We believe that our existing cash and cash equivalents, marketable securities and cash from operations will be sufficient to meet our working capital needs, capital expenditures and financing obligations for at least the next 12 months and over the long-term. The majority of our cash is held in the United States and we do not anticipate a need to repatriate cash held outside of the United States. Further, it is our intent to indefinitely reinvest these funds outside the United States, and, therefore, we have not provided for any United States income taxes.

Previous wording

In April 2023, we terminated our credit facility with Silicon Valley Bank (“SVB”), while keeping our existing letters of credit in lieu of deposits on certain leases. As we no longer have a credit facility with SVB, we were required to collateralize these letters of credit with cash, totaling approximately $1.3 million, which we therefore have classified within restricted cash. Due to its long-term nature, this restricted cash is recorded within other non-current assets on the condensed consolidated balance sheets.

Current wording

In April 2023, we terminated our credit facility with Silicon Valley Bank (“SVB”), while keeping our existing letters of credit in lieu of deposits on certain leases. As we no longer have a credit facility with SVB, we were required to collateralize these letters of credit with cash, totaling approximately $1.3 million, which we therefore have classified within restricted cash. As of October 31, 2024, $0.6 million of this restricted cash is recorded within prepaid expenses and other current assets and $0.7 million is recorded within other non-current assets on the condensed consolidated balance sheets.

Previous wording

During 2023, we entered into cash collateral agreements with J.P. Morgan Bank in lieu of a credit facility, through which approximately $6.4 million is outstanding as of July 31, 2024. Due to its long-term nature, the majority of this restricted cash is recorded within other non-current assets on the condensed consolidated balance sheets.

Current wording

During 2023, we entered into cash collateral agreements with J.P. Morgan Bank in lieu of a credit facility, through which approximately $6.9 million is outstanding as of October 31, 2024. As of October 31, 2024, $0.9 million of this restricted cash is recorded within prepaid expenses and other current assets and $6.0 million is recorded within other non-current assets on the condensed consolidated balance sheets.

Previous wording

Our expected material cash requirements consist of contractually obligated expenditures. We have agreements in place with data and service providers that require us to make certain minimum guaranteed purchase commitments through fiscal year 2028, which totaled $131.1 million as of January 31, 2024, of which $69.5 million is due within twelve months. In the normal course of business we may renew existing contracts throughout the year. In addition, we lease certain office facilities under operating lease arrangements that expire on various dates through fiscal year 2029. In August 2023, we signed a 10-year lease for a new corporate headquarters in New York, NY, which commenced on April 29, 2024, with payments beginning in December 2024. Refer to Note 7, Leases, included in Part I, Item 1 of this Form 10-Q for a discussion of our leases. There were no other significant changes in the Company’s material cash requirements as compared to the material cash requirements from known contractual and other obligations described in the 2024 10-K.

Current wording

Our expected material cash requirements consist of contractually obligated expenditures. We have agreements in place with data and service providers that require us to make certain minimum guaranteed purchase commitments through fiscal year 2028, which totaled $131.1 million as of January 31, 2024, of which $69.5 million is due within twelve months. In the normal course of business we may renew existing contracts throughout the year. In addition, we lease certain office facilities under operating lease arrangements that expire on various dates through fiscal year 2035. In August 2023, we signed a 10-year lease for a new corporate headquarters in New York, NY, which commenced on April 29, 2024, with payments beginning in December 2024. Refer to Note 7, Leases, included in Part I, Item 1 of this Form 10-Q for a discussion of our leases. There were no other significant changes in our material cash requirements as compared to the material cash requirements from known contractual and other obligations described in the 2024 10-K.

Previous wording

During the three and six months ended July 31, 2024 we repurchased 17,119,411 and 25,460,052 shares, respectively, of our Class A common stock for a cost of $169.8 million and $271.0 million, respectively, including commissions. All of the shares repurchased have been returned to the Company’s authorized but unissued share reserve. As of July 31, 2024, we have completed the full purchase authorization of $300 million under the 2024 Share Repurchase Program. For additional information regarding the 2024 Share Repurchase Program, see “Issuer Purchases of Equity Securities” included in Part II, Item 2 of this Form 10-Q and Note 9, Stockholders’ Equity included in Part I, Item 1 of this Form 10-Q.

Current wording

During the nine months ended October 31, 2024 we repurchased 25,460,052 shares, of our Class A common stock for a cost of $271.0 million, including commissions. There were no share repurchases during the three months ended October 31, 2024. All of the shares repurchased have been returned to our authorized but unissued share reserve. During the second quarter of fiscal year 2025, we completed the full purchase authorization of $300 million under the 2024 Share Repurchase Program. For additional information regarding the 2024 Share Repurchase Program, see Note 9, Stockholders’ Equity included in Part I, Item 1 of this Form 10-Q.

Previous wording

For the six months ended July 31, 2024, cash provided by operating activities was $63.0 million, which consisted of net income of $12.5 million, adjusted for non-cash expenses of $46.1 million and $4.4 million of net cash flows provided as a result of changes in operating assets and liabilities. The $4.4 million of net cash flows provided as a result of changes in our operating assets and liabilities reflected a $67.3 million decrease in accounts receivable due to collections outpacing billings. This increase to cash flow from operations was partially offset by (i) a $26.7 million decrease in accrued expenses and other current liabilities primarily due to the timing of bonus and commission payments, (ii) a $15.3 million increase in prepaid expenses and other current assets due to higher prepaid hosting and data costs, (iii) a $9.3 million decrease in accounts payable due to timing of vendor payments, (iv) an $7.9 million decrease in deferred revenue as a result of recognized revenue exceeding billings, and (v) a $2.7 million decrease in operating lease liabilities due to ongoing payments for leased properties.

Current wording

For the nine months ended October 31, 2024, cash provided by operating activities was $72.2 million, which consisted of net income of $22.9 million, adjusted for non-cash expenses of $67.0 million and $17.7 million of net cash flows used as a result of changes in operating assets and liabilities. The $17.7 million of net cash flows used as a result of changes in our operating assets and liabilities reflected an $80.7 million decrease in accounts receivable due to collections outpacing billings. This increase to cash flow from operations was partially offset by (i) a $60.5 million decrease in deferred revenue as a result of recognized revenue exceeding billings, (ii) a $21.9 million decrease in accrued expenses and other current liabilities primarily due to the timing of bonus and commission payments, (iii) an $9.1 million increase in prepaid expenses and other current assets due to higher prepaid hosting and data costs, and (iv) a $3.9 million decrease in operating lease liabilities due to ongoing payments for leased properties.

Previous wording

For the six months ended July 31, 2023, cash provided by operating activities was $33.1 million, which consisted of net income of $13.3 million, adjusted for non-cash expenses of $28.3 million, and $8.5 million of net cash flows used as a result of changes in operating assets and liabilities. The $8.5 million of net cash flows provided as a result of changes in our operating assets and liabilities reflected (i) a $26.5 million decrease in accounts receivable due to increased collections and (ii) a $7.9 million decrease in prepaid expenses and other current assets due to decrease in prepaid hosting and data costs. These increases to cash flows from operations were partially offset by (i) a $25.6 million decrease in accrued expenses and other current liabilities primarily due to the timing of bonus and commission payments, (ii) an $7.9 million decrease in accounts payable due to timing of vendor payments, (iii) a $4.9 million increase in other non-current assets due to an increase in capitalized commissions and security deposits related to new leases, (iv) a $2.9 million decrease in operating lease liabilities due to increased payments for new leased properties in 2023 and (v) a $2.2 million decrease in deferred revenue as a result of revenue recognized on the deferred revenue balances at the beginning of the fiscal year.

Current wording

For the nine months ended October 31, 2023, cash provided by operating activities was $54.2 million, which consisted of net income of $30.3 million, adjusted for non-cash expenses of $47.3 million, and $23.4 million of net cash flows used as a result of changes in operating assets and liabilities. The $23.4 million of net cash flows used as a result of changes in our operating assets and liabilities reflected a $47.9 million decrease in accounts receivable due to increased collections. This increase to cash flows from operations was partially offset by (i) a $26.8 million decrease in deferred revenue as a result of revenue recognized on the deferred revenue balances at the beginning of the fiscal year and timing of billings, (ii) a $23.7 million decrease in accrued expenses and other current liabilities primarily due to the timing of bonus and commission payments, (iii) an $8.9 million decrease in accounts payable due to timing of vendor payments, (iv) an $8.4 million increase in other non-current assets due to an increase in capitalized commissions and collateral for letters of credit issued in lieu of deposits on certain leases and customer contracts, as well as security deposits in lieu of letters of credit for customer contracts, and (v) a $6.1 million decrease in operating lease liabilities due to ongoing payments for leased properties.

Previous wording

For the six months ended July 31, 2024, cash provided by investing activities was $145.8 million and primarily consisted of $292.3 million of sales and maturities of marketable securities, partially offset by $136.1 million of purchases of marketable securities.

Current wording

For the nine months ended October 31, 2024, cash provided by investing activities was $110.0 million and primarily consisted of $453.9 million of sales and maturities of marketable securities, partially offset by $329.3 million of purchases of marketable securities.

Previous wording

For the six months ended July 31, 2023, cash used in investing activities was $92.6 million and primarily consisted of $288.7 million of purchases of marketable securities, partially offset by $206.3 million of sales and maturities of marketable securities.

Current wording

For the nine months ended October 31, 2023, cash used in investing activities was $96.3 million and primarily consisted of $443.9 million of purchases of marketable securities, partially offset by $362.8 million of sales and maturities of marketable securities.

Previous wording

For the six months ended July 31, 2024, cash used in financing activities was $253.2 million, which consisted of payments for the 2024 Share Repurchase Program of $273.9 million, offset by $17.2 million of proceeds from the exercise of stock options and proceeds from the purchase of stock under our 2021 Employee Stock Purchase Plan (“ESPP”) of $3.4 million.

Current wording

For the nine months ended October 31, 2024, cash used in financing activities was $251.6 million, which consisted of payments for the 2024 Share Repurchase Program of $273.9 million, offset by $18.9 million of proceeds from the exercise of stock options and $3.4 million of proceeds from the purchase of stock under our 2021 Employee Stock Purchase Plan (“ESPP”).

Previous wording

For the six months ended July 31, 2023, cash provided by financing activities was $25.3 million, which consisted of proceeds from the exercise of stock options of $21.4 million and proceeds from purchases of stock under our ESPP of $4.0 million.

Current wording

For the nine months ended October 31, 2023, cash provided by financing activities was $36.3 million, which consisted of proceeds from the exercise of stock options of $32.3 million and proceeds from purchases of stock under our ESPP of $4.0 million.

Previous wording

Refer to Note 2, Basis of Presentation and Summary of Significant Accounting Policies, included in Part I, Item 1 of this Form 10-Q for a discussion of our significant accounting policies. There have been no material changes to our critical accounting policies and accounting estimates as compared to those disclosed in the 2024 10-K.

Current wording

Refer to Note 2, Basis of Presentation and Summary of Significant Accounting Policies, included in Part I, Item 1 of this Form 10-Q and Note 2, Basis of Presentation and Summary of Significant Accounting Policies, to our Consolidated Financial Statements included in “Part II, Item 8. Financial Statements” of the 2024 10-K for a discussion of our significant accounting policies. There have been no material changes to our critical accounting policies and accounting estimates as compared to those disclosed in the 2024 10-K with the exception of estimates related to our U.S. deferred tax assets. We maintain a full valuation allowance against our U.S. deferred tax assets as of October 31, 2024 and regularly assess the need for a valuation allowance against our deferred tax assets.