Samsara Inc

Previous wording

We were founded in 2015 and have achieved significant growth since our inception. For the three months ended August 3, 2024 and July 29, 2023, our revenue was $300.2 million and $219.3 million, respectively, representing year-over-year growth of 37%. Our net loss was $49.6 million and $60.0 million for the three months ended August 3, 2024 and July 29, 2023, respectively. For the six months ended August 3, 2024 and July 29, 2023, our revenue was $580.9 million and $423.6 million, respectively, representing year-over-year growth of 37%. Our net loss was $105.9 million and $127.8 million for the six months ended August 3, 2024 and July 29, 2023, respectively. Our business model focuses on maximizing the lifetime value of our customer relationships, and we continue to make significant investments to grow our customer base.

Current wording

We were founded in 2015 and have achieved significant growth since our inception. For the three months ended November 2, 2024 and October 28, 2023, our revenue was $322.0 million and $237.5 million, respectively, representing year-over-year growth of 36%. Our net loss was $37.8 million and $45.5 million for the three months ended November 2, 2024 and October 28, 2023, respectively. For the nine months ended November 2, 2024 and October 28, 2023, our revenue was $902.9 million and $661.1 million, respectively, representing year-over-year growth of 37%. Our net loss was $143.7 million and $173.4 million for the nine months ended November 2, 2024 and October 28, 2023, respectively. Our business model focuses on maximizing the lifetime value of our customer relationships, and we continue to make significant investments to grow our customer base.

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, our business and results of operations could be affected by global macroeconomic trends and events such as inflationary pressure, interest rate increases and declines in consumer confidence, widespread disruptions of supply chains and freight and shipping channels, increased prices for many goods and services (including fluctuating fuel costs), labor shortages, delayed or reduced spending on information technology (“IT”) products, and significant volatility and disruption of financial markets, as well as other conditions arising from international conflicts, such as the ongoing conflict between Russia and Ukraine, geopolitical tensions involving China, and the conflict in Israel and the surrounding region, uncertainty around the outcome of political elections, and the emergence of pandemics and epidemics. We are continuously monitoring these global events and other macroeconomic developments and how they may impact us directly or indirectly as a result of the effects on our customers and suppliers.

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, our business and results of operations could be affected by global macroeconomic trends and events such as inflationary pressure, interest rate increases and declines in consumer confidence, widespread disruptions of supply chains and freight and shipping channels, increased prices for many goods and services (including fluctuating fuel costs), labor shortages, delayed or reduced spending on information technology (“IT”) products, and significant volatility and disruption of financial markets, as well as other conditions arising from international conflicts, such as the ongoing conflict between Russia and Ukraine, geopolitical tensions involving China, and the conflict in the Middle East, the outcome of political elections, and the emergence of public health crises. We are continuously monitoring these global events and other macroeconomic developments and how they may impact us directly or indirectly as a result of the effects on our customers and suppliers.

Previous wording

Cost of revenue consists primarily of the amortization of IoT device costs associated with subscription agreements, cellular-related costs, third-party cloud infrastructure expenses, customer support costs, warranty costs, and employee-related costs directly associated with our customer support and operations, including salaries, employee benefits and stock-based compensation, amortization of internal-use software development and certain cloud computing implementation costs, expenses related to shipping and handling, packaging, fulfillment, warehousing, write-downs of excess and obsolete inventory, and costs associated with software subscriptions, office facilities, IT-related expenses, and depreciation and amortization of property and equipment.

Current wording

Cost of revenue consists primarily of the amortization of IoT device costs associated with subscription agreements, cellular-related costs, third-party cloud infrastructure expenses, customer support costs, warranty costs, and employee-related costs directly associated with our customer support and operations, including salaries, employee benefits and stock-based compensation, amortization of internal-use software development and certain cloud computing implementation costs, expenses related to shipping and handling, packaging, fulfillment, warehousing, write-downs of excess and obsolete inventory, installation costs, and costs associated with software subscriptions, office facilities, IT-related expenses, and depreciation and amortization of property and equipment.

Previous wording

Research and development expenses consist primarily of employee-related costs, including salaries, employee benefits and stock-based compensation, depreciation and other expenses related to prototyping IoT devices, product initiatives, software subscriptions, hosting used in research and development, and costs associated with office facilities, IT-related expenses, and depreciation and amortization of property and equipment. We continue to focus our research and development efforts on adding new features and products and enhancing the utility of our Connected Operations Cloud. We capitalize the portion of our internal-use software development costs that meets the criteria for capitalization.

Current wording

Research and development expenses consist primarily of employee-related costs, including salaries, employee benefits and stock-based compensation, depreciation and other expenses related to prototyping IoT devices, product initiatives, software subscriptions, hosting and cellular-related costs used in research and development, and costs associated with office facilities, IT-related expenses, and depreciation and amortization of property and equipment. We continue to focus our research and development efforts on adding new features and products and enhancing the utility of our Connected Operations Cloud. We capitalize the portion of our internal-use software development costs that meets the criteria for capitalization.

Previous wording

General and administrative expenses consist of employee-related costs for executive, finance, legal, human resources, facilities, and certain IT personnel, including salaries, employee benefits and stock-based compensation, professional fees for external legal, accounting, recruiting and other consulting services, bad debt, costs associated with software subscriptions, office facilities, IT-related expenses, and depreciation and amortization of property and equipment, and unallocated lease costs.

Current wording

General and administrative expenses consist of employee-related costs for executive, finance, legal, human resources, facilities, and certain IT personnel, including salaries, employee benefits and stock-based compensation, professional services fees for external legal, accounting, recruiting and other consulting services, bad debt, costs associated with software subscriptions, office facilities, IT-related expenses, and depreciation and amortization of property and equipment, and unallocated lease costs.

Previous wording

Comparison of the Three and Six Months Ended August 3, 2024 and July 29, 2023

Current wording

Comparison of the Three and Nine Months Ended November 2, 2024 and October 28, 2023

Previous wording

Revenue increased by $80.9 million and $157.4 million, or 37% and 37%, for the three and six months ended August 3, 2024, respectively, compared to the three and six months ended July 29, 2023, primarily due to an increase in customer count and increased purchases of our subscription offerings, including subscriptions to additional Applications, by existing customers.

Current wording

Revenue increased by $84.4 million and $241.8 million, or 36% and 37%, for the three and nine months ended November 2, 2024, respectively, compared to the three and nine months ended October 28, 2023, primarily due to an increase in customer count and increased purchases of our subscription offerings, including subscriptions to additional Applications, by existing customers.

Previous wording

Cost of revenue increased by $14.5 million, or 25%, for the three months ended August 3, 2024 compared to the three months ended July 29, 2023, primarily due to $6.3 million of increased amortization of deferred IoT device costs, $6.3 million of increased infrastructure costs associated with our product offerings, $3.3 million of increased employee-related costs, which included a $2.9 million increase in salaries and benefits and related employer taxes and a $0.4 million increase in stock-based compensation expense, and $0.7 million of increased amortization of internally-developed software, partially offset by $2.3 million of decreased warranty costs. The increases in amortization of deferred IoT device costs and infrastructure costs were primarily due to increased sales volume year-over-year.

Current wording

Cost of revenue increased by $14.4 million, or 23%, for the three months ended November 2, 2024 compared to the three months ended October 28, 2023, primarily due to $6.0 million of increased infrastructure costs associated with our product offerings, $4.5 million of increased amortization of deferred IoT device costs, $2.3 million of increased employee-related costs, which included a $1.9 million increase in salaries and benefits and related employer taxes and a $0.4 million increase in stock-based compensation expense, and $0.9 million of increased amortization of internally-developed software. The increases in infrastructure costs and amortization of deferred IoT device costs were primarily due to increased sales volume year-over-year.

Previous wording

Our gross margin increased to 76% for the three months ended August 3, 2024 compared to 73% for the three months ended July 29, 2023, mainly due to operational efficiencies in warranty charges and infrastructure costs.

Current wording

Our gross margin increased to 76% for the three months ended November 2, 2024 compared to 74% for the three months ended October 28, 2023, mainly due to operational efficiencies in deferred IoT device costs, direct labor costs, and warranty charges.

Previous wording

Cost of revenue increased by $25.6 million, or 22%, for the six months ended August 3, 2024 compared to the six months ended July 29, 2023, primarily due to $13.2 million of increased amortization of deferred IoT device costs, $8.0 million of increased infrastructure costs associated with our product offerings, $5.3 million of increased employee-related costs, which included a $4.5 million increase in salaries and benefits and related employer taxes and a $0.8 million increase in stock-based compensation expense, and $1.4 million of increased amortization of internally-developed software, partially offset by $3.5 million of decreased warranty costs. The increases in amortization of deferred IoT device costs and infrastructure costs were primarily due to increased sales volume year-over-year.

Current wording

Cost of revenue increased by $40.0 million, or 22%, for the nine months ended November 2, 2024 compared to the nine months ended October 28, 2023, primarily due to $17.7 million of increased amortization of deferred IoT device costs, $13.9 million of increased infrastructure costs associated with our product offerings, $7.6 million of increased employee-related costs, which included a $6.4 million increase in salaries and benefits and related employer taxes and a $1.3 million increase in stock-based compensation expense, $2.2 million of increased amortization of internally-developed software, and $1.6 million of increased excess and obsolete inventory charges, partially offset by $4.3 million of decreased warranty costs. The increases in amortization of deferred IoT device costs and infrastructure costs were primarily due to increased sales volume year-over-year.

Previous wording

Our gross margin increased to 76% for the six months ended August 3, 2024 compared to 73% for the six months ended July 29, 2023, mainly due to operational efficiencies in warranty charges, direct labor costs, and deferred IoT device costs.

Current wording

Our gross margin increased to 76% for the nine months ended November 2, 2024 compared to 73% for the nine months ended October 28, 2023, mainly due to operational efficiencies in deferred IoT device costs, warranty charges, and direct labor costs.

Previous wording

Research and development expense increased by $12.5 million, or 20%, for the three months ended August 3, 2024 compared to the three months ended July 29, 2023, primarily due to a $9.3 million increase in employee-related costs, which included a $5.9 million increase in salaries and benefits and related employer taxes and a $3.5 million increase in stock-based compensation expense, primarily due to increased headcount to support our research and development organization. The increase in our research and development expense was also due to a $1.1 million increase in prototyping and third-party infrastructure expenses, a $1.1 million increase in software subscriptions and IT-related costs, and a$0.8 million increase in expenses relating to contractor and other professional services.

Current wording

Research and development expense increased by $16.2 million, or 27%, for the three months ended November 2, 2024 compared to the three months ended October 28, 2023, primarily due to a $12.5 million increase in employee-related costs, which included a $7.1 million increase in salaries and benefits and related employer taxes and a $5.4 million increase in stock-based compensation expense, primarily due to increased headcount to support our research and development organization. The increase in our research and development expense was also due to a $1.7 million increase in software subscriptions, IT, hosting and cellular-related costs, a $1.0 million increase in expenses relating to contractor and other professional services, and a $0.4 million increase in prototyping expenses.

Previous wording

Research and development expense increased by $25.1 million, or 20%, for the six months ended August 3, 2024 compared to the six months ended July 29, 2023, primarily due to a $18.8 million increase in employee-related costs, which included a $12.3 million increase in salaries and benefits and related employer taxes and a $6.5 million increase in stock-based compensation expense, primarily due to increased headcount to support our research and development organization. The increase in our research and development expense was also due to a $3.1 million increase in prototyping and third-party infrastructure expenses, a $2.3 million increase in software subscriptions and IT-related costs, and a $1.3 million increase in expenses relating to contractor and other professional services.

Current wording

Research and development expense increased by $41.3 million, or 22%, for the nine months ended November 2, 2024 compared to the nine months ended October 28, 2023, primarily due to a $31.3 million increase in employee-related costs, which included a $19.4 million increase in salaries and benefits and related employer taxes and an $11.9 million increase in stock-based compensation expense, primarily due to increased headcount to support our research and development organization. The increase in our research and development expense was also due to a $4.9 million increase in software subscriptions, IT, hosting and cellular-related costs, a $2.5 million increase in prototyping expenses, and a $2.2 million increase in expenses relating to contractor and other professional services.

Previous wording

Sales and marketing expense increased by $33.6 million, or 28%, for the three months ended August 3, 2024 compared to the three months ended July 29, 2023, primarily due to a $24.2 million increase in employee-related costs, which included a $19.5 million increase in salaries and benefits and related employer taxes and a $4.0 million increase in stock-based compensation expense, primarily due to increased headcount to support our sales organization. The increase in our sales and marketing expense was also due to a $3.4 million increase in travel-related expenses and expenses relating to our customer visits, conferences, and other events, a $2.0 million increase in expenses relating to professional services, a $1.5 million increase in IT-related costs and software subscriptions, and a $1.1 million increase in expenses relating to lead generation initiatives. These increases were primarily to support the growth in our business.

Current wording

Sales and marketing expense increased by $33.3 million, or 29%, for the three months ended November 2, 2024 compared to the three months ended October 28, 2023, primarily due to a $25.6 million increase in employee-related costs, which included a $20.2 million increase in salaries and benefits and related employer taxes, a $2.8 million increase in stock-based compensation expense, and a $2.6 million increase in sales commissions, primarily due to increased headcount to support our sales organization. The increase in our sales and marketing expense was also due to a $1.8 million increase in IT-related costs and software subscriptions, a $1.8 million increase in expenses relating to lead generation initiatives, a $1.5 million increase in travel-related costs and expenses relating to our customer visits, conferences, and other events, and a $1.3 million increase in depreciation expense. These increases were primarily to support the growth in our business.

Previous wording

Sales and marketing expense increased by $62.1 million, or 26%, for the six months ended August 3, 2024 compared to the six months ended July 29, 2023, primarily due to a $45.9 million increase in employee-related costs, which included a $38.5 million increase in salaries and benefits and related employer taxes and a $7.3 million increase in stock-based compensation expense, primarily due to increased headcount to support our sales organization. The increase in our sales and marketing expense was also due to a $6.6 million increase in travel-related expenses and expenses relating to our customer visits, conferences, and other events, a $3.9 million increase in IT-related costs and software subscriptions, a $2.3 million increase in expenses relating to professional services, and a $1.5 million increase in expenses relating to lead generation initiatives. These increases were primarily to support the growth in our business.

Current wording

Sales and marketing expense increased by $95.4 million, or 27%, for the nine months ended November 2, 2024 compared to the nine months ended October 28, 2023, primarily due to a $71.6 million increase in employee-related costs, which included a $58.7 million increase in salaries and benefits and related employer taxes, a $10.1 million increase in stock-based compensation expense, and a $2.8 million increase in sales commissions, primarily due to increased headcount to support our sales organization. The increase in our sales and marketing expense was also due to an $8.1 million increase in travel-related costs and expenses relating to our customer visits, conferences, and other events, a $5.8 million increase in IT-related costs and software subscriptions, a $3.3 million increase in expenses relating to lead generation initiatives, and a $2.2 million increase in expenses relating to campaign marketing and brand awareness. These increases were primarily to support the growth in our business.

Previous wording

General and administrative expense increased by $8.8 million, or 18%, for the three months ended August 3, 2024 compared to the three months ended July 29, 2023, primarily due to a $7.8 million increase in employee-related costs, which included a $4.3 million increase in stock-based compensation expense and a $3.5 million increase in salaries and benefits and related employer taxes, primarily due to increased headcount to support the growth of our finance, accounting, human resources, and legal functions. Our increase in general and administrative expense was also due to a $2.5 million increase in expenses relating to legal fees. The increases in general and administrative expense were partially offset by a $1.3 million decrease in IT-related costs.

Current wording

General and administrative expense increased by $14.3 million, or 30%, for the three months ended November 2, 2024 compared to the three months ended October 28, 2023, primarily due to an $8.6 million increase in employee-related costs, which included a $4.6 million increase in stock-based compensation expense and a $4.0 million increase in salaries and benefits and related employer taxes, primarily due to increased headcount to support the growth of our finance, accounting, human resources, and legal functions. Our increase in general and administrative expense was also due to a $5.1 million increase in other professional services fees.

Previous wording

General and administrative expense increased by $23.2 million, or 25%, for the six months ended August 3, 2024 compared to the six months ended July 29, 2023, primarily due to a $18.9 million increase in employee-related costs, which included a $9.5 million increase in stock-based compensation expense anda $9.4 million increase in salaries and benefits and related employer taxes, primarily due to increased headcount to support the growth of our finance, accounting, human resources, and legal functions. The increase in our general and administrative expense was also due toa $5.0 million increase in legal fees and a$2.5 million increase in bad debt expense. The increases in general and administrative expense were partially offset by a $4.2 million decrease in IT-related costs.

Current wording

General and administrative expense increased by $37.5 million, or 27%, for the nine months ended November 2, 2024 compared to the nine months ended October 28, 2023, primarily due to a $24.6 million increase in employee-related costs, which included a $14.0 million increase in stock-based compensation expense anda $10.6 million increase in salaries and benefits and related employer taxes, primarily due to increased headcount to support the growth of our finance, accounting, human resources, and legal functions. The increase in our general and administrative expense was also due toa $9.6 million increase in other professional services fees and a$2.4 million increase in bad debt expense.

Previous wording

Interest income and other income, net, decreased by $0.6 million, or 6%, for the three months ended August 3, 2024 compared to the three months ended July 29, 2023. $1.7 million of this decrease was due to an increase in foreign currency losses. The decrease in our interest income and other income, net, was partially offset by a $0.9 million increase in interest income earned due to a larger investment base of our managed portfolio of marketable debt securities.

Current wording

Interest income and other income, net, increased by $0.7 million, or 7%, for the three months ended November 2, 2024 compared to the three months ended October 28, 2023. $1.5 million of this increase was primarily due to interest income earned on a larger investment base of our managed portfolio of marketable debt securities and $0.3 million of this increase was due to a decrease in foreign currency losses. These increases were partially offset by a $0.9 million decrease in interest income earned on our cash balances due to a smaller balance in our money market funds.

Previous wording

Interest income and other income, net, increased by $0.6 million, or 3%, for the six months ended August 3, 2024 compared to the six months ended July 29, 2023. $2.7 million of this increase was primarily due to a larger investment base of our managed portfolio of marketable debt securities. The increase in our interest income and other income, net, was partially offset by a $2.2 million increase in foreign currency losses.

Current wording

Interest income and other income, net, increased by $1.3 million, or 4%, for the nine months ended November 2, 2024 compared to the nine months ended October 28, 2023. $5.1 million of this increase was primarily due to interest income earned on a larger investment base of our managed portfolio of marketable debt securities. This increase was partially offset by a $1.9 million increase in foreign currency losses and a $1.8 million decrease in interest income earned on our cash balances due to a smaller balance in our money market funds.

Previous wording

The provision for income taxes increased by $0.6 million and $0.1 million, or 140% and 4%, for the three and six months ended August 3, 2024, respectively, compared to the three and six months ended July 29, 2023, primarily due to higher expected taxes related to our foreign jurisdictions.

Current wording

The provision for income taxes increased by $0.4 million and $0.4 million, or 247% and 27%, for the three and nine months ended November 2, 2024, respectively, compared to the three and nine months ended October 28, 2023, primarily due to higher expected taxes related to our foreign jurisdictions.

Previous wording

(1)Stock-based compensation expense-related charges included approximately $0.2 million and $0.2 million of employer taxes on employee equity transactions for the three months ended August 3, 2024 and July 29, 2023, respectively.

Current wording

(1)Stock-based compensation expense-related charges included approximately $0.3 million and $0.2 million of employer taxes on employee equity transactions for the three months ended November 2, 2024 and October 28, 2023, respectively.

Previous wording

We define non-GAAP income (loss) from operations, or non-GAAP operating income (loss), as income (loss) from operations excluding the effect of stock-based compensation expense-related charges, lease modification, impairment, and related charges, and legal settlements. Non-GAAP operating margin is defined as non-GAAP operating income (loss) as a percentage of total revenue. We use non-GAAP income (loss) from operations and non-GAAP operating margin in conjunction with traditional GAAP measures to evaluate our financial performance. We believe that non-GAAP income (loss) from operations and non-GAAP operating margin provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations. The following table presents a reconciliation of our non-GAAP income (loss) from operations to our GAAP loss from operations for the periods presented (in thousands, except percentages):

Current wording

We define non-GAAP income (loss) from operations, or non-GAAP operating income (loss), as income (loss) from operations excluding the effect of stock-based compensation expense-related charges, lease modification, impairment, and related charges, and legal settlements. Non-GAAP operating margin is defined as non-GAAP operating income (loss) as a percentage of total revenue. We use non-GAAP income (loss) from operations and non-GAAP operating margin in conjunction with traditional GAAP measures to evaluate our financial performance. We believe that non-GAAP income (loss) from operations and non-GAAP operating margin provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations. The following table presents a reconciliation of our non-GAAP income from operations to our GAAP loss from operations for the periods presented (in thousands, except percentages):

Previous wording

(1)Stock-based compensation expense-related charges included approximately $3.6 million and $4.2 million of employer taxes on employee equity transactions for the three months ended August 3, 2024 and July 29, 2023, respectively.

Current wording

(1)Stock-based compensation expense-related charges included approximately $4.5 million and $2.9 million of employer taxes on employee equity transactions for the three months ended November 2, 2024 and October 28, 2023, respectively.

Previous wording

Since our founding, we have financed our operations primarily through the sale of equity securities and payments received from our customers. In December 2021, we completed our initial public offering (“IPO”), which resulted in aggregate net proceeds of $846.7 million, including proceeds from the underwriters’ exercise of their option to purchase additional shares of our Class A common stock in January 2022 and net of underwriting discounts and commissions. We have generated significant operating losses from our operations, as reflected in our accumulated deficit of $1,561.0 million as of August 3, 2024. We intend to continue investing in our business, and as a result, we may require additional capital resources to execute on our strategic initiatives to grow our business, particularly if we generate negative cash flows in future quarters. We believe that our existing cash, cash equivalents, and short-term and long-term investments will be sufficient to support working capital, including our non-cancelable arrangements, and capital expenditure requirements for at least the next 12 months.

Current wording

Since our founding, we have financed our operations primarily through the sale of equity securities and payments received from our customers. In December 2021, we completed our initial public offering (“IPO”), which resulted in aggregate net proceeds of $846.7 million, including proceeds from the underwriters’ exercise of their option to purchase additional shares of our Class A common stock in January 2022 and net of underwriting discounts and commissions. We have generated significant operating losses from our operations, as reflected in our accumulated deficit of $1,598.8 million as of November 2, 2024. We intend to continue investing in our business, and as a result, we may require additional capital resources to execute on our strategic initiatives to grow our business, particularly if we generate negative cash flows in future quarters. We believe that our existing cash, cash equivalents, and short-term and long-term investments will be sufficient to support working capital, including our non-cancelable arrangements, and capital expenditure requirements for at least the next 12 months.

Previous wording

As of August 3, 2024, our principal sources of liquidity were cash, cash equivalents, and short-term and long-term investments of $880.3 million. Cash and cash equivalents consisted of cash on deposit with banks as well as highly liquid investments with an original maturity of 90 days or less, when purchased. Our investments primarily consisted of U.S. government and agency securities, corporate notes and bonds, and commercial paper. Our primary uses of cash include personnel-related costs, third-party cloud and cellular infrastructure expenses, sales and marketing expenses, overhead costs, and funding other working capital requirements, such as inventory and connected device costs to meet our performance obligations related to our Connected Operations Cloud.

Current wording

As of November 2, 2024, our principal sources of liquidity were cash, cash equivalents, and short-term and long-term investments of $913.0 million. Cash and cash equivalents consisted of cash on deposit with banks as well as highly liquid investments with an original maturity of 90 days or less, when purchased. Our investments primarily consisted of U.S. government and agency securities, corporate notes and bonds, and commercial paper. Our primary uses of cash include personnel-related costs, third-party cloud and cellular infrastructure expenses, sales and marketing expenses, overhead costs, and funding other working capital requirements, such as inventory and related connected device costs to meet our performance obligations related to our Connected Operations Cloud.

Previous wording

Our largest source of operating cash is payments received from our customers. Our primary uses of cash from operating activities are for employee-related expenses, sales and marketing expenses, inventory and connected device costs, third-party cloud and cellular infrastructure expenses, and overhead expenses. We have generated negative cash flows from operations in each of the past two fiscal years, and have supplemented working capital through net proceeds from the sale of equity securities.

Current wording

Our largest source of operating cash is payments received from our customers. Our primary uses of cash from operating activities are for employee-related expenses, sales and marketing expenses, inventory and related connected device costs, third-party cloud and cellular infrastructure expenses, and overhead expenses. We have generated negative cash flows from operations in each of the past two fiscal years, and have supplemented working capital through net proceeds from the sale of equity securities.

Previous wording

Cash provided by operating activities mainly consists of our net loss adjusted for certain non-cash items, including stock-based compensation, depreciation and amortization of property and equipment, net accretion of discounts on marketable debt securities, and non-cash operating lease costs, and changes in operating assets and liabilities during each period.

Current wording

Cash provided by operating activities mainly consists of our net loss adjusted for certain non-cash items, including stock-based compensation, depreciation and amortization of property and equipment, net accretion of discounts on marketable debt securities, lease modification, impairment, and related charges, and non-cash operating lease costs, and changes in operating assets and liabilities during each period.

Previous wording

Cash provided by operating activities was $41.8 million for the six months ended August 3, 2024. This consisted of a net loss of $105.9 million, adjusted for non-cash charges of $138.8 million, and changes in our operating assets and liabilities of $8.9 million. The non-cash charges were primarily composed of stock-based compensation expense of $136.3 million and depreciation and amortization of $9.1 million, partially offset by net accretion of discounts on marketable debt securities of $8.3 million. Changes in our operating assets and liabilities during the six months ended August 3, 2024 reflect increases in deferred revenue due to the growth of our business and lower prepaid expenses and other current assets, partially offset by lower cash collections from customers, higher levels of inventories to meet anticipated demand requirements, higher connected device costs, and higher deferred commissions during the six months ended August 3, 2024.

Current wording

Cash provided by operating activities was $77.8 million for the nine months ended November 2, 2024. This consisted of a net loss of $143.7 million, adjusted for non-cash charges of $220.1 million, and changes in our operating assets and liabilities of $1.4 million. The non-cash charges were primarily composed of stock-based compensation expense of $208.9 million, depreciation and amortization of $15.8 million, and lease modification, impairment, and related charges of $3.6 million, partially offset by net accretion of discounts on marketable debt securities of $12.2 million. Changes in our operating assets and liabilities during the nine months ended November 2, 2024 reflect increases in deferred revenue due to the growth of our business and lower prepaid expenses and other current assets, partially offset by lower cash collections from customers, higher levels of inventories to meet anticipated demand requirements, higher deferred commissions, higher connected device costs, and higher vendor payments during the nine months ended November 2, 2024.

Previous wording

Cash provided by operating activities was$18.2 million for thesix months ended July 29, 2023. This consisted of a net loss of$127.8 million, adjusted for non-cash charges of$111.3 million, and changes in our operating assets and liabilities of$34.7 million. The non-cash charges were primarily composed of stock-based compensation expense of$112.6 million and depreciation and amortization of$7.2 million, partially offset by net accretion of discounts on marketable debt securities of$8.6 million. Changes in our operating assets and liabilities during thesix months ended July 29, 2023 reflect increases in deferred revenue due to the growth of our business, lower inventories due to operating efficiencies in our order fulfillment processes, and higher cash collections from customers, partially offset by higher connected device costs and higher deferred commissions during thesix months ended July 29, 2023.

Current wording

Cash provided by operating activities was$30.1 million for thenine months ended October 28, 2023. This consisted of a net loss of$173.4 million, adjusted for non-cash charges of$177.3 million, and changes in our operating assets and liabilities of$26.1 million. The non-cash charges were primarily composed of stock-based compensation expense of$172.4 million, depreciation and amortization of$10.8 million, and lease modification, impairment, and related charges of$4.8 million, partially offset by net accretion of discounts on marketable debt securities of$12.7 million. Changes in our operating assets and liabilities during thenine months ended October 28, 2023 reflect increases in deferred revenue due to the growth of our business, lower inventories due to operating efficiencies in our order fulfillment processes, and lower operating lease ROU assets, partially offset by higher connected device costs, higher deferred commissions, and higher prepaid expenses and other current assets during thenine months ended October 28, 2023.

Previous wording

Cash used in investing activities was $33.2 million for the six months ended August 3, 2024, which primarily consisted of $330.1 million of purchases of investments and $10.1 million of capital expenditures for internal-use software development costs and our office facilities, partially offset by $305.7 million of proceeds from maturities and redemptions of investments and$1.2 million of proceeds from sales of investments.

Current wording

Cash used in investing activities was $67.1 million for the nine months ended November 2, 2024, which primarily consisted of $526.1 million of purchases of investments and $14.8 million of capital expenditures for internal-use software development costs and our office facilities, partially offset by $472.8 million of proceeds from maturities and redemptions of investments and$1.2 million of proceeds from sales of investments.

Previous wording

Cash used in investing activities was$34.6 million for thesix months ended July 29, 2023, which primarily consisted of$374.4 million of purchases of investments and$5.5 million of capital expenditures for internal-use software development costs and our office facilities, partially offset by$340.9 million of proceeds from maturities and redemptions of investments and$4.5 million of proceeds from sales of investments.

Current wording

Cash used in investing activities was$36.0 million for thenine months ended October 28, 2023, which primarily consisted of$541.4 million of purchases of investments and$8.9 million of capital expenditures for internal-use software development costs and our office facilities, partially offset by$508.1 million of proceeds from maturities and redemptions of investments and$6.2 million of proceeds from sales of investments.

Previous wording

Cash provided by financing activities was $16.0 million for the six months ended August 3, 2024, which primarily consisted of $16.9 million of proceeds from employee stock purchases under the 2021 Employee Stock Purchase Plan (the “2021 ESPP”) and exercises of stock options, partially offset by $0.9 million in payments of principal on finance leases.

Current wording

Cash provided by financing activities was $15.6 million for the nine months ended November 2, 2024, which primarily consisted of $17.0 million of proceeds from employee stock purchases under the 2021 Employee Stock Purchase Plan (the “2021 ESPP”) and exercises of stock options, partially offset by $1.3 million in payments of principal on finance leases.

Previous wording

Cash provided by financing activities was$12.3 million for thesix months ended July 29, 2023, which primarily consisted of$13.2 million of proceeds from employee stock purchases under the 2021 ESPP and exercises of stock options, partially offset by$0.9 million in payments of principal on finance leases.

Current wording

Cash provided by financing activities was$12.0 million for thenine months ended October 28, 2023, which primarily consisted of$13.4 million of proceeds from employee stock purchases under the 2021 ESPP and exercises of stock options, partially offset by$1.4 million in payments of principal on finance leases.

Previous wording

There were no material changes to our critical accounting policies and estimates during the six months ended August 3, 2024.

Current wording

There were no material changes to our critical accounting policies and estimates during the nine months ended November 2, 2024.