Gitlab Inc

Previous wording

We believe we have built a highly differentiated platform that gives us an advantage over our competitors by empowering business, development, security, operations, and IT teams to collaborate in a single application across the entire DevSecOps lifecycle. Our technology leadership is an outcome of various factors, including our strong community, network of contributors, and continued enhancement of The DevSecOps Platform by developing new features and expanding the functionality of existing features with speed and consistency. We have had a history of releasing enhancements to The DevSecOps Platform every month and, as of July 31, 2024, had done so for the last 154 months. We intend to continue releasing new software on a monthly cadence.

Current wording

We believe we have built a highly differentiated platform that gives us an advantage over our competitors by empowering business, development, security, operations, and IT teams to collaborate in a single application across the entire DevSecOps lifecycle. Our technology leadership is an outcome of various factors, including our strong community, network of contributors, and continued enhancement of The DevSecOps Platform by developing new features and expanding the functionality of existing features with speed and consistency. We have had a history of releasing enhanc ements to The DevSecOps Platform every month and, as of October 31, 2024, had done so for the last 157 months. We intend to continue releasing new software on a monthly cadence.

Previous wording

Our future growth depends in large part on our ability to acquire new customers. This, in turn, relies on our ability to reach teams and organizations through our marketing and sales efforts. To this end, we are making investments in our sales and marketing efforts to expand our reach and differentiate The DevSecOps Platform from competitive products and services. We believe that eventually the vast majority of organizations will switch to a DevSecOps platform and embrace a single application approach, creating a substantial opportunity to continue to grow our customer base. As a result, our Base Customers increased to 9,314 as of July 31, 2024 from 7,815 as of July 31, 2023, an increase of 19%, our $100,000 ARR customers increased to 1,076 as of July 31, 2024 from 810 as of July 31, 2023, an increase of 33%. See the section entitled “—Key Business Metrics—Dollar-Based Net Retention Rate and ARR” below for information about how we define ARR.

Current wording

Our future growth depends in large part on our ability to acquire new customers. This, in turn, relies on our ability to reach teams and organizations through our marketing and sales efforts. To this end, we are making investments in our sales and marketing efforts to expand our reach and differentiate The DevSecOps Platform from competitive products and services. We believe that eventually the vast majority of organizations will switch to a DevSecOps platform and embrace a single application approach, creating a substantial opportunity to continue to grow our customer base. As a result, our Base Customers increased to 9,519 as of October 31, 2024 from 8,175 as of October 31, 2023, an increase of 16%, our $100,000 ARR customers increased to 1,144 as of October 31, 2024 from 874 as of October 31, 2023, an increase of 31%. See the section entitled “—Key Business Metrics—Dollar-Based Net Retention Rate and ARR” below for information about how we define ARR.

Previous wording

Our operating results and growth prospects will depend in part on our ability to attract new customers. While we believe we have a significant market opportunity that The DevSecOps Platform addresses, we will need to continue to invest in sales and marketing, research and development, and customer support to further grow our customer base, both in the United States and internationally. We believe that we have more than 40 million registered users, which includes users of our free tier offering, provides a base of potential new customers. We intend to continue to add headcount to our global sales and marketing team to acquire new customers and to increase sales to existing customers.

Current wording

Our operating results and growth prospects will depend in part on our ability to attract new customers. While we believe we have a significant market opportunity that The DevSecOps Platform addresses, we will need to continue to invest in sales and marketing, research and development, and customer support to further grow our customer base, both in the United States and internationally. We believe that we have more than 40 million registered users, which includes users of our free tier offering, providing a base of potential new customers. We intend to continue to add headcount to our global sales and marketing team to acquire new customers and to increase sales to existing customers.

Previous wording

We employ a “land and expand” business strategy that focuses on efficiently acquiring new customers and growing our relationships with existing customers over time. We believe that as our customers realize the benefits of a single application approach, they will increase the use of The DevSecOps Platform, enhancing our ability to expand revenue generation within our existing customers over time. As a result of our approach, as of July 31, 2024 and 2023, our Dollar-Based Net Retention Rate was 126% and 129%, respectively. See the section entitled “—Key Business Metrics—Dollar-Based Net Retention Rateand ARR” below for information about how we define Dollar-Based Net Retention Rate.

Current wording

We employ a “land and expand” business strategy that focuses on efficiently acquiring new customers and growing our relationships with existing customers over time. We believe that as our customers realize the benefits of a single application approach, they will increase the use of The DevSecOps Platform, enhancing our ability to expand revenue generation within our existing customers over time. As a result of our approach, as of October 31, 2024 and 2023, our Dollar-Based Net Retention Rate was 124% and 128%, respectively. See the section entitled “—Key Business Metrics—Dollar-Based Net Retention Rateand ARR” below for information about how we define Dollar-Based Net Retention Rate.

Previous wording

The typical term of a subscription contract for self-managed offering is one to three years.

Current wording

The typical term of a subscription contract for self-managed offerings is one to three years.

Previous wording

The typical term of a subscription contract for SaaS offering is one to three years.

Current wording

The typical term of a subscription contract for SaaS offerings is one to three years.

Previous wording

Comparison of the Three and Six Months Ended July 31, 2024 and 2023

Current wording

Comparison of the Three and Nine Months Ended October 31, 2024 and 2023

Previous wording

Revenue increased $43.0 million, or 31%, to $182.6 million for the three months ended July 31, 2024 from $139.6 million for the three months ended July 31, 2023. Revenue increased $85.3 million, or 32%, to $351.8 million for the six months ended July 31, 2024 from $266.5 million for the six months ended July 31, 2023. The increase in both thethree and six months ended July 31, 2024 was primarily due to the ongoing demand for The DevSecOps Platform, including adding new customers, the expansion within our existing paid customers, and an increase in our number of customers with $100,000 or greater in ARR. As of July 31, 2024 and 2023, our expansion is reflected by our Dollar-Based Net Retention Rate being 126% and 129%, respectively. We had 1,076 customers with ARR over $100,000 as of July 31, 2024, increasing from 810 customers with ARR over $100,000 as of July 31, 2023.

Current wording

Revenue increased $46.4 million, or 31%, to $196.0 million for the three months ended October 31, 2024 from $149.7 million for the three months ended October 31, 2023. Revenue increased $131.7 million, or 32%, to $547.8 million for the nine months ended October 31, 2024 from $416.1 million for the nine months ended October 31, 2023. The increase in both thethree and nine months ended October 31, 2024 was primarily due to the ongoing demand for The DevSecOps Platform, including adding new customers, the expansion within our existing paid customers, and an increase in our number of customers with $100,000 or greater in ARR. As of October 31, 2024 and 2023, our expansion is reflected by our Dollar-Based Net Retention Rate being 124% and 128%, respectively. We had 1,144 customers with ARR over $100,000 as of October 31, 2024, increasing from 874 customers with ARR over $100,000 as of October 31, 2023.

Previous wording

Cost of revenue increased by $6.7 million, to $21.4 million for the three months ended July 31, 2024 from $14.7 million for the three months ended July 31, 2023, primarily due to an increase of $2.4 million in third party hosting costs for increased SaaS and cloud usage and $2.0 million in personnel-related expenses, driven by an increase in our average customer support and professional services headcount and an increase of $0.4 million in stock-based compensation expense (as discussed in the section titled“Stock-Based Compensation Expense”below). The remaining change was primarily attributable to an increase of $1.8 million in the amortization of intangible assets, partially offset by a decrease of $0.2 million in software and consulting expenses. Gross margin decreased by 1% to 88% for the three months ended July 31, 2024 from 89% for the three months ended July 31, 2023.

Current wording

Cost of revenue increased by $7.0 million, to $22.1 million for the three months ended October 31, 2024 from $15.1 million for the three months ended October 31, 2023, primarily due to an increase of $2.0 million in third party hosting costs for increased SaaS and cloud usage, an increase of $2.0 million in the amortization of intangible assets and $1.7 million increase in personnel-related expenses, driven by an increase in our average customer support and professional services headcount and an increase of $0.3 million in stock-based compensation expenses (as discussed in the section titled“Stock-Based Compensation Expense”below). Gross margin decreased by 1% to 89% for the three months ended October 31, 2024 from 90% for the three months ended October 31, 2023.

Previous wording

Cost of revenue increased by $11.5 million, to $40.1 million for the six months ended July 31, 2024 from $28.6 millionfor thesix months ended July 31, 2023, primarily due to an increase of $4.1 million in third-party hosting costs for increased SaaS and cloud usage and an increase of $3.7 million in personnel-related expenses, driven by an increase in our average customer support and professional services headcount and an increase of $0.8 million in stock-based compensation expense (as discussed in the section titled“Stock-Based Compensation Expense”below). The remaining change was primarily attributable to an increase of $2.4 million in the amortization of intangible assets, and $0.6 million in software and consulting expenses. Gross margin remained at 89% for the six months ended July 31, 2024 compared to thesix months ended July 31, 2023.

Current wording

Cost of revenue increased by $18.6 million, to $62.3 million for the nine months ended October 31, 2024 from $43.7 millionfor thenine months ended October 31, 2023, primarily due to an increase of $6.1 million in third-party hosting costs for increased SaaS and cloud usage. The remaining change was primarily attributable to an increase of $5.4 million in personnel-related expenses, driven by an increase in our average customer support and professional services headcount and an increase of $1.2 million in stock-based compensation expenses (as discussed in the section titled“Stock-Based Compensation Expense”below), and an increase of $4.4 million in the amortization of intangible assets. Gross margin remained at 89% for the nine months ended October 31, 2024 compared to thenine months ended October 31, 2023.

Previous wording

Cost of revenue attributed to our variable interest entity, JiHu, was $0.5 million and $0.6 million for the three months ended July 31, 2024 and 2023, respectively, and$1.0 million and$1.1 million for thesix months ended July 31, 2024 and 2023, respectively. See “Note 11. Joint Venture and Equity Method Investment” to our condensed consolidated financial statements for additional details.

Current wording

Cost of revenue attributed to our variable interest entity, JiHu, was $0.5 million and $0.8 million for the three months ended October 31, 2024 and 2023, respectively, and $1.5 million and $1.8 million for the nine months ended October 31, 2024 and 2023, respectively. See “Note 11. Joint Venture and Equity Method Investment” to our condensed consolidated financial statements for additional details.

Previous wording

Sales and marketing expenses increased by $5.7 million, to $97.8 millionfor the three months ended July 31, 2024 from $92.1 millionfor the three months ended July 31, 2023, primarily due to an increase of $4.4 million in personnel-related expenses, driven by an increase in our average sales and marketing headcount. The remaining change was mainly due to an increase of $1.1 million in hosting costsin thethree months ended July 31, 2024.

Current wording

Sales and marketing expenses increased by $8.4 million, to $95.3 millionfor the three months ended October 31, 2024 from $87.0 millionfor the three months ended October 31, 2023, primarily due to an increase of $8.2 million in personnel-related expenses, driven by an increase in our average sales and marketing headcount and an increase of $0.5 million in stock-based compensation expenses (as discussed in the section titled“Stock-Based Compensation Expense”below).

Previous wording

Sales and marketing expenses attributed to our variable interest entity, JiHu, were $1.4 million and $2.0 millionfor the three months ended July 31, 2024 and 2023, respectively, and $3.0 million and $4.0 million for thesix months ended July 31, 2024 and 2023, respectively. See “Note 11. Joint Venture and Equity Method Investment” to ourcondensed consolidated financial statements for additional details.

Current wording

Sales and marketing expenses attributed to our variable interest entity, JiHu, were $1.8 million and $1.6 million for the three months ended October 31, 2024 and 2023, respectively, and $4.9 million and $5.7 million for thenine months ended October 31, 2024 and 2023, respectively. See “Note 11. Joint Venture and Equity Method Investment” to ourcondensed consolidated financial statements for additional details.

Previous wording

Research and development expenses increased by $12.3 million, to$61.3 million for the three months ended July 31, 2024 from$49.0 million for the three months ended July 31, 2023, primarily due to an increase of $10.9 million in personnel-related expenses, driven by an increase in our average research and development headcount and an increase of$3.6 million in stock-based compensation expense (as discussed in the section titled“Stock-Based Compensation Expense” below). The remaining change was mainly due to an increase of $0.9 million in hosting costs for internal usage and an increase of $0.4 million in restructuring costs.

Current wording

Research and development expenses increased by $12.3 million, to$61.4 million for the three months ended October 31, 2024 from$49.1 million for the three months ended October 31, 2023, primarily due to an increase of $10.5 million in personnel-related expenses, driven by an increase in our average research and development headcount and an increase of$1.6 million in stock-based compensation expenses (as discussed in the section titled“Stock-Based Compensation Expense” below). The remaining change was mainly due to an increase of $1.2 million in hosting costs for internal usage.

Previous wording

Research and development expenses increased by$16.0 million, to $115.4 million forthesix months ended July 31, 2024 from $99.4 millionfor thesix months ended July 31, 2023, primarily due to an increase of $16.0 million in personnel-related expenses, driven by an increase in our average research and development headcount and an increase of $4.3 million in stock-based compensation expense (as discussed in the section titled“Stock-Based Compensation Expense” below). The remaining change was mainly due to $1.2 million in hosting costs for internal usage, partially offset by a decrease of $1.7 million in restructuring costs.

Current wording

Research and development expenses increased by$28.3 million, to $176.8 million forthe nine months ended October 31, 2024 from $148.5 millionfor thenine months ended October 31, 2023, primarily due to an increase of $26.5 million in personnel-related expenses, driven by an increase in our average research and development headcount and an increase of $5.9 million in stock-based compensation expenses (as discussed in the section titled“Stock-Based Compensation Expense” below). The remaining change was mainly due to $2.4 million in hosting costs for internal usage, partially offset by a decrease of $1.7 million in restructuring costs.

Previous wording

Research and development expenses attributed to our variable interest entity, JiHu, were$0.6 millionand$0.7 million for the three months ended July 31, 2024 and 2023, respectively, and $0.4 million and $2.7 million for thesix months ended July 31, 2024 and 2023, respectively. See “Note 11. Joint Venture and Equity Method Investment” to our condensed consolidated financial statements for additional details.

Current wording

Research and development expenses attributed to our variable interest entity, JiHu, were $0.6 million and $1.5 million for the three months ended October 31, 2024 and 2023, respectively, and $1.0 million and $4.1 million for the nine months ended October 31, 2024 and 2023, respectively. See “Note 11. Joint Venture and Equity Method Investment” to our condensed consolidated financial statements for additional details.

Previous wording

General and administrative expenses increased by $5.3 million, to $43.2 million for the three months ended July 31, 2024 from $37.8 million for the three months ended July 31, 2023, primarily driven by an increase of $3.8 million attributable to the fair value remeasurement of acquisition related contingent consideration. The remaining change was primarily due to an increase of $0.6 million in personnel-related expenses, mainly attributable to an increase in our average general and administrative headcount, an increase of $0.5 million in software and consulting expenses, and an increase of $0.3 million in charitable donation of common stock.

Current wording

General and administrative expenses increased by $7.1 million, to $46.0 million for the three months ended October 31, 2024 from $38.8 million for the three months ended October 31, 2023, primarily driven by an increase of $3.7 million in personnel-related expenses, mainly attributable to an increase in our average general and administrative headcount and an increase of $4.2 million in stock-based compensation expenses (as discussed in the section titled“Stock-Based Compensation Expense” below), an increase of $1.4 million in consulting expenses, an increase of $0.3 million in charitable donation of common stock, an increase of $0.2 million in finance and insurance expenses and an increase of $0.2 million in privilege tax and franchise tax.

Previous wording

General and administrative expenses increased by$28.6 million, to$100.7 million for thesix months ended July 31, 2024 from$72.1 million for thesix months ended July 31, 2023, primarily driven by $14.5 million expense related to our in-person company-wide event. The remaining change was primarily due to an increase of $6.6 million in personnel-related expenses, mainly attributable to an increase in our average general and administrative headcount and an increase of$5.2 million in stock-based compensation expense (as discussed in the section titled“Stock-Based Compensation Expense” below), an increase of $3.8 million attributable to the fair value remeasurement of acquisition related contingent consideration, an increase of $1.2 million in software and consulting expenses, and an increase of $0.6 million in charitable donation of common stock.

Current wording

General and administrative expenses increased by$35.7 million, to$146.6 million for thenine months ended October 31, 2024 from$110.9 million for thenine months ended October 31, 2023, primarily driven by an increase of $14.3 million expense related to our in-person company-wide event. The remaining change was primarily due to an increase of $10.3 million in personnel-related expenses, mainly attributable to an increase in our average general and administrative headcount and an increase of$9.4 million in stock-based compensation expenses (as discussed in the section titled“Stock-Based Compensation Expense” below), an increase of $3.8 million from a loss attributable to the fair value remeasurement of acquisition related contingent consideration, and an increase of $0.8 million in charitable donation of common stock.

Previous wording

Stock-based compensation expense increased by $2.6 million, to $49.0 million for the three months ended July 31, 2024 from $46.4 million for the three months ended July 31, 2023, primarily due to an increase of $11.4 million of expense from RSUs, offset by a decrease of $5.0 million for grant modifications, a decrease of $3.2 million related to our ESPP and a decrease of $1.3 million related to stock options.

Current wording

Stock-based compensation expense increased by $6.7 million, to $48.0 million for the three months ended October 31, 2024 from $41.3 million for the three months ended October 31, 2023, primarily due to an increase of $8.6 million of expense from RSUs, offset by a decrease of $1.1 million related to our ESPP and $1.2 million related to stock options.

Previous wording

Stock-based compensation expense increased by $12.5 million, to $91.2 million for thesix months ended July 31, 2024 from $78.7 million for thesix months ended July 31, 2023, primarily due to an increase of $23.6 million of expense from RSUs, offset by a decrease of $6.4 million for grant modifications, and a decrease of $5.1 million related to our ESPP.

Current wording

Stock-based compensation expense increased by $19.2 million, to $139.3 million for thenine months ended October 31, 2024 from $120.0 million for thenine months ended October 31, 2023, primarily due to an increase of $32.2 million of expense from RSUs, offset by a decrease of $6.4 million for grant modifications, $5.2 million related to our ESPP, and $3.8 million related to stock options.

Previous wording

Stock-based compensation expense attributed to our variable interest entity, JiHu, was $0.1 million and $0.2 million for the three months ended July 31, 2024 and 2023, respectively, and a $0.2 million gainand $2.7 million gain for the six months ended July 31, 2024 and 2023, respectively. See “Note 11. Joint Venture and Equity Method Investment” to our condensed consolidated financial statements for additional details.

Current wording

Stock-based compensation net expense attributed to our variable interest entity, JiHu, was $1.0 million and $0.6 million for the three months ended October 31, 2024 and 2023, respectively, and a $0.8 million net expense and $2.1 million net gain for the nine months ended October 31, 2024 and 2023, respectively. See “Note 11. Joint Venture and Equity Method Investment” to our condensed consolidated financial statements for additional details.

Previous wording

For the three and six months ended July 31, 2024 compared to the three and six months ended July 31, 2023, interest income increased primarily due to income earned from our cash equivalents and short-term investments as a result of investing the proceeds from our initial public offering, or IPO, into marketable securities as well as higher interest rates during the three and six months ended July 31, 2024 compared to the three and six months ended July 31, 2023.

Current wording

For the three and nine months ended October 31, 2024 compared to the three and nine months ended October 31, 2023, interest income increased primarily due to income earned from our cash equivalents and short-term investments as a result of investing the proceeds from our initial public offering, or IPO, into marketable securities as well as higher interest rates during the three and nine months ended October 31, 2024 compared to the three and nine months ended October 31, 2023.

Previous wording

We recorded an impairment charge of $8.9 million in other income (expense), net in the condensed consolidated statement of operations during the year ended January 31, 2024 which reduced the equity method investment value to zero as of January 31, 2024. As a result there is no loss from equity method investment for the three and six months ended July 31, 2024.

Current wording

We recorded an impairment charge of $8.9 million in other income (expense), net in the condensed consolidated statement of operations during the year ended January 31, 2024 which reduced the equity method investment value to zero as of January 31, 2024. As a result there is no loss from equity method investment for the three and nine months ended October 31, 2024.

Previous wording

Our effective tax rate increased by approximately 153.9% for the three months ended July 31, 2024 as compared tothe three months ended July 31, 2023. A tax benefit is expressed as a positive rate because of our pretax loss. The increase in tax benefit was primarily due to the tax effects of the BAPA negotiations between the United States and Dutch taxing authorities, and the Company's foreign and domestic operations.

Current wording

Our effective tax rate increased by approximately 1244.3% for the three months ended October 31, 2024 as compared tothe three months ended October 31, 2023. A tax benefit is expressed as a positive rate because of our pretax loss. The increase in tax benefit was primarily due to the tax effects of the BAPA negotiations between the United States and Dutch tax authorities, as well as the execution of an agreement between GitLab B.V. and the Dutch tax authority to reduce the rate of tax imposed on the tax gain recognized upon the transfer of the economic rights of the Company’s intellectual property from the Netherlands to the United States.

Previous wording

Our effective tax rate increased by approximately 44.2% for the six months ended July 31, 2024 as compared tothesix months ended July 31, 2023, representing an increased tax benefit. The increase in tax benefit was primarily due to the tax effects of the BAPA negotiations between the United States and Dutch taxing authorities, and the Company's foreign and domestic operations.

Current wording

Our effective tax rate increased by approximately 290.8% for the nine months ended October 31, 2024 as compared tothe nine months ended October 31, 2023, representing an increased tax benefit. The increase in tax benefit was primarily due to the tax effects of the BAPA negotiations between the United States and Dutch taxing authorities.

Previous wording

Our effective tax rate for the three and six months ended July 31, 2024 was higher than the U.S. federal statutory tax rate of 21%, primarily due to the tax effects of the BAPA negotiations between the United States and Dutch taxing authorities, and the Company’s foreign and domestic operations.

Current wording

Our effective tax rate for the three and nine months ended October 31, 2024 was higher than the U.S. federal statutory tax rate of 21%, primarily due to the tax effects of the BAPA negotiations between the United States and Dutch tax authorities, and the Company’s foreign and domestic operations.

Previous wording

As of July 31, 2024, our U.S. federal 2018 through 2022 tax years were open and subject to potential examination in one or more jurisdictions. In addition, in the United States, any net operating losses or credits that were generated in prior years but not yet fully utilized in a year that is closed under the statute of limitations may also be subject to examination. We are currently under examination in the Netherlands for the tax years ended December 31, 2015 and 2016. We expect negotiations to continue through the end of fiscal year 2025. We believe that we have adequately reserved for the outcome of this audit. We regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for income taxes. We continue to monitor the progress of ongoing discussions with tax authorities and the effect, if any, of the expected expiration of the statute of limitations in various taxing jurisdictions.

Current wording

As of October 31, 2024, our U.S. federal 2018 through 2024 tax years were open and subject to potential examination in one or more jurisdictions. In addition, in the United States, any net operating losses or credits that were generated in prior years but not yet fully utilized in a year that is closed under the statute of limitations may also be subject to examination. Our Netherlands tax years are currently open for the tax years from 2018 to 2024, subject to adjustments as a result of the recently negotiated BAPA. We believe that we have adequately reserved for the outcome of the BAPA. We regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for income taxes. We continue to monitor the progress of ongoing discussions with tax authorities and the effect, if any, of the expected expiration of the statute of limitations in various taxing jurisdictions.

Previous wording

As of July 31, 2024, unrecognized tax benefits were$349.9 million, of which$160.1 million would affect the effective tax rate if recognized. We have classified approximately$159.5 million of unrecognized tax benefit as current tax liability due to anticipated timing of the settlement with the Internal Revenue Service and Dutch taxing authorities and their associated payments, which are expected to be made within the next 12 months. We are unable to reasonably estimate the timing of remaining long-term payments or the amount by which the liability will increase or decrease.

Current wording

As of October 31, 2024, unrecognized tax benefits were $9.9 million, of which $0.5 million would affect the effective tax rate if recognized. As of January 31, 2024, the unrecognized tax benefits were $396.8 million, of which $207.8 million would affect the effective tax rate if recognized. We have settled and paid the BAPA tax liability with the DTA, thereby reducing the current tax liability previously classified as an unrecognized tax benefit to an immaterial amount. For unrecognized tax benefits unrelated to the BAPA, we are unable to reasonably estimate the timing of the remaining long-term payments or the amount by which the liability will increase or decrease.

Previous wording

It is our policy to classify accrued interest and penalties related to unrecognized tax benefits in provision for income taxes. Accrued interest and penalties were$55.4 million as of July 31, 2024 and $52.1 million as of January 31, 2024, respectively.

Current wording

It is our policy to classify accrued interest and penalties related to unrecognized tax benefits in provision for income taxes. Accrued interest and penalties were $0.3 million as of October 31, 2024 and $52.1 million as of January 31, 2024, respectively.

Previous wording

As of July 31, 2024 and January 31, 2024, our principal source of liquidity was cash, cash equivalents, and short-term investments aggregating to $1.1 billion and $1.0 billion, respectively, which were held for working capital and strategic investment purposes. As of July 31, 2024, cash and cash equivalents consist of cash in banks, money markets funds, treasuries, and commercial paper, while short-term investments mainly consist of treasuries, corporate debt securities, agency securities, and commercial paper.

Current wording

As of October 31, 2024 and January 31, 2024, our principal source of liquidity was cash, cash equivalents, and short-term investments aggregating to $0.9 billion and $1.0 billion, respectively, which were held for working capital and strategic investment purposes. As of October 31, 2024, cash and cash equivalents consist of cash in banks, money markets funds, treasuries, and commercial paper, while short-term investments mainly consist of treasuries, corporate debt securities, agency securities, and commercial paper.

Previous wording

Cash provided by operating activities during thesix months ended July 31, 2024 was $49.8 million, primarily consisting of our net loss of $42.6 million, adjusted for non-cash items of $119.8 million (mainly attributable to stock-based compensation expense of $91.2 million and amortization of deferred contract acquisition costs, net of $22.9 million), and net cash outflows of $27.4 million provided by changes in our operating assets and liabilities. The main drivers of the changes in operating assets and liabilities were the decrease in deferred contract acquisition costs of $21.0 million, the decrease in accrued expenses and other liabilities of $21.6 million, the decrease in accrued compensation and related expenses of $6.9 million, and the decrease in other non-current liabilities of $8.1 million, partially offset by the decrease in prepaid expenses and other current assets of $13.3 million, and the increase in deferred revenue of $14.8 million.

Current wording

Cash used in operating activities during the nine months ended October 31, 2024 was $127.2 million, primarily consisting of our net loss of $14.3 million, adjusted for non-cash items of $178.2 million (mainly attributable to stock-based compensation expense of $139.3 million and amortization of deferred contract acquisition costs, net of $35.7 million), and net cash outflows of $291.1 million provided by changes in our operating assets and liabilities. The main drivers of the changes in operating assets and liabilities were the increase of accounts receivable of $31.7 million, the increase in deferred contract acquisition costs of $35.7 million, the decrease in accrued expenses and other liabilities of $241.7 million (mainly attributable to $187.7 million for the BAPA payment), the decrease in accrued compensation and related expenses of $8.8 million, and the decrease in other non-current liabilities of $11.1 million, partially offset by the decrease in prepaid expenses and other current assets of $2.5 million, and the increase in deferred revenue of $34.5 million.

Previous wording

Cash provided by operating activities during the six months ended July 31, 2023 was $16.1 million, primarily consisting of our net loss of $104.1 million, adjusted for non-cash items of $102.3 million (mainly attributable to stock-based compensation expense of $78.7 million), and net cash inflows of $17.9 million provided by changes in our operating assets and liabilities. The main drivers of the changes in operating assets and liabilities were the decrease in accounts receivable of $25.3 million, the increase in accrued compensation and related expenses of $2.6 million, and the increase in deferred revenue of $11.2 million, partially offset by the increase in deferred contract acquisition costs of $18.1 million.

Current wording

Cash provided by operating activities during the nine months ended October 31, 2023 was $10.2 million, primarily consisting of our net loss of $390.5 million, adjusted for non-cash items of $153.4 million (mainly attributable to stock-based compensation expense of $120.0 million), and net cash outflows of $247.3 million provided by changes in our operating assets and liabilities. The main drivers of the changes in operating assets and liabilities were the increase in deferred revenue of $29.2 million and the increase in accrued compensation and related expenses of $2.8 million, partially offset by the increase in deferred contract acquisition costs of $31.8 million and the increase in accounts receivable of $5.3 million.

Previous wording

Cash provided by investing activities during thesix months ended July 31, 2024 was $84.2 million, primarily consisting of $112.8 million in proceeds from maturities, net of purchases of short-term investments, partially offset by a $20.2 million payment for a business combination, net of cash acquired, a $7.3 million payment for an asset acquisition, and $1.6 million in purchases of property and equipment.

Current wording

Cash used in investing activities during the nine months ended October 31, 2024 was $8.6 million, primarily consisting of $21.5 million in proceeds from maturities, net of purchases of short-term investments, partially offset by a $20.2 million payment for a business combination, net of cash acquired, a $7.7 million payment for an asset acquisition, and $2.6 million in purchases of property and equipment.

Previous wording

Cash used in investing activities during the six months ended July 31, 2023 was $65.0 million, primarily consisting of $62.0 million in purchases of short-term investments, net of proceeds from maturities, $2.5 million outflow as a result of an escrow payment related to a prior business combination, and $0.5 million in purchases of property and equipment.

Current wording

Cash used in investing activities during the nine months ended October 31, 2023 was $50.5 million, primarily consisting of $46.7 million in purchases of short-term investments, net of proceeds from maturities, $2.5 million outflow as a result of an escrow payment related to a prior business combination, and $1.3 million in purchases of property and equipment.

Previous wording

Cash provided by financing activities during thesix months ended July 31, 2024 was $18.0 million, attributable to $10.1 million proceeds from the issuance of common stock upon stock options exercises, and $7.9 million of proceeds from the issuance of common stock under the ESPP.

Current wording

Cash provided by financing activities during the nine months ended October 31, 2024 was $20.9 million, attributable to $17.9 million proceeds from the issuance of common stock upon stock options exercises, and $7.9 million of proceeds from the issuance of common stock under the ESPP, partially offset by $4.9 million of settlement of acquisition related contingent cash consideration.

Previous wording

Cash provided by financing activities during the six months ended July 31, 2023 was $25.5 million, attributable to $17.8 million of proceeds from the issuance of common stock upon stock options exercises, and $7.8 million of proceeds from the issuance of common stock under the ESPP.

Current wording

Cash provided by financing activities during the nine months ended October 31, 2023 was $30.2 million, attributable to $22.5 million of proceeds from the issuance of common stock upon stock options exercises, and $7.8 million of proceeds from the issuance of common stock under the ESPP.