UiPath Inc

Previous wording

First established in a Bucharest, Romania apartment in 2005, UiPath was incorporated in Delaware in 2015 as a company principally focused on building and managing automations and developing computer vision technology, which remains the foundation of our platform today. Since that time, we have evolved from our beginnings in robotic process automation ("RPA") into an end-to-end AI-powered Business Automation Platform through development and acquisitions, have launched new products, and have expanded our operations across the globe. Our vision is to enable automation across all knowledge work to accelerate human achievement.

Current wording

First established in a Bucharest, Romania apartment in 2005, UiPath was incorporated in Delaware in 2015 as a company principally focused on building and managing automations and developing computer vision technology, which remains the foundation of our platform today. Since that time, we have evolved from our beginnings in robotic process automation ("RPA") into an end-to-end AI-powered automation platform through development and acquisitions, have launched new products, and have expanded our operations across the globe. Our vision is to enable automation across all knowledge work to accelerate human achievement.

Previous wording

The UiPath Business Automation Platform is The Foundation of Innovation™. We provide our customers with a robust set of capabilities that allow them to discover opportunities for automation, automate using a digital workforce that seamlessly collaborates with humans, and operate a mission critical automation program at scale. Our platform enables customers to integrate AI with automation, enabling automation to take action based on learning and experience. It enables employees to quickly build automations for both existing and new processes and to automate a vast array of actions including, but not limited to, logging into applications, extracting information from documents, moving folders, filling in forms, reading emails, and updating information fields and databases. The ability of our platform to replicate steps performed by humans in executing business processes drives operational efficiencies and enables companies to deliver on key digital initiatives with greater speed, agility, and accuracy.

Current wording

The UiPath Platform™ provides our customers with a robust set of capabilities that allow them to discover opportunities for automation, automate using natural language and a digital workforce that seamlessly collaborates with humans, and operate a mission critical automation program at scale. Our platform enables customers to integrate AI with automation, enabling automation to take action based on learning and experience. It enables employees to quickly build automations for both existing and new processes and to automate a vast array of actions including, but not limited to, logging into applications, extracting information from documents, moving folders, filling in forms, reading emails, and updating information fields and databases. The ability of our platform to replicate steps performed by humans in executing business processes drives operational efficiencies and enables companies to deliver on key digital initiatives with greater speed, agility, and accuracy.

Previous wording

Business Highlights for the Three and Six Months Ended July 31, 2024:

Current wording

Business Highlights for the Three and Nine Months Ended October 31, 2024:

Previous wording

•Quarter-to-date revenue of$316.3 million increased 10% year-over-year.

Current wording

•Quarter-to-date revenue of$354.7 million increased 9% year-over-year.

Previous wording

•Year-to-date revenue of$651.4 million increase 13% year-over-year.

Current wording

•Year-to-date revenue of$1,006.0 million increased 11% year-over-year.

Previous wording

•ARR at July 31, 2024 of$1,550.6 million increased 19% year-over-year.

Current wording

•Annualized renewal run-rate ("ARR") at October 31, 2024 of$1,606.6 million increased 17% year-over-year.

Previous wording

•Gross margin was 82% for the six months ended July 31, 2024, compared to 84% for the six months ended July 31, 2023.

Current wording

•Gross margin was 82% for the nine months ended October 31, 2024, compared to 84% for the nine months ended October 31, 2023.

Previous wording

•Cash flow from operations was $146.4 million for the six months ended July 31, 2024, compared to $111.6 million for the six months ended July 31, 2023.

Current wording

•Cash flow from operations was $174.5 million for the nine months ended October 31, 2024, compared to $153.5 million for the nine months ended October 31, 2023.

Previous wording

•Cash and cash equivalents, restricted cash, and marketable securities were $1,743.8 million as of July 31, 2024, compared to $1,880.3 million as of January 31, 2024.

Current wording

•Cash and cash equivalents, restricted cash, and marketable securities were $1,603.9 million as of October 31, 2024, compared to $1,880.3 million as of January 31, 2024.

Previous wording

ARR is the key performance metric we use in managing our business because it illustrates our ability to acquire new subscription customers and to maintain and expand our relationships with existing subscription customers. We define ARR as annualized invoiced amounts per solution SKU from subscription licenses and maintenance and support obligations assuming no increases or reductions in customers' subscriptions. ARR does not include the costs we may incur to obtain such subscription licenses or provide such maintenance and support, and does not reflect any actual or anticipated reductions in invoiced value due to contract non-renewals or service cancellations other than for certain reserves, for example those for credit losses or disputed amounts. At July 31, 2024 and 2023, our ARR was $1,550.6 million and $1,307.9 million, respectively, representing a growth rate of 19%. Approximately 17% of this growth was due to new customers and 83% to existing customers. Our dollar-based net retention rate, which represents the net expansion of ARR from existing customers over the preceding 12 months, was 115% and 121% as of July 31, 2024 and 2023, respectively. We calculate dollar-based net retention rate as of a period end by starting with the ARR from the cohort of all customers as of 12 months prior to such period end ("Prior Period ARR"). We then calculate the ARR from these same customers as of the current period end ("Current Period ARR"). Current Period ARR includes any expansion and is net of contraction or attrition over the last 12 months, but does not include ARR from new customers in the current period. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the point-in-time dollar-based net retention rate.

Current wording

ARR is the key performance metric we use in managing our business because it illustrates our ability to acquire new subscription customers and to maintain and expand our relationships with existing subscription customers. We define ARR as annualized invoiced amounts per solution SKU from subscription licenses and maintenance and support obligations assuming no increases or reductions in customers' subscriptions. ARR does not include the costs we may incur to obtain such subscription licenses or provide such maintenance and support. ARR also does not reflect nonrecurring rebates payable to partners (upon establishing sufficient history of their nonrecurring nature), the impact of nonrecurring incentives (such as one-time discounts provided under sales promotional programs), and any actual or anticipated reductions in invoiced value due to contract non-renewals or service cancellations other than for certain reserves (for example those for credit losses or disputed amounts). At October 31, 2024 and 2023, our ARR was $1,606.6 million and $1,378.2 million, respectively, representing a growth rate of 17%. Approximately 19% of this growth was due to new customers and 81% to existing customers. Our dollar-based net retention rate, which represents the net expansion of ARR from existing customers over the preceding 12 months, was 113% and 121% as of October 31, 2024 and 2023, respectively. We calculate dollar-based net retention rate as of a period end by starting with the ARR from the cohort of all customers as of 12 months prior to such period end ("Prior Period ARR"). We then calculate the ARR from these same customers as of the current period end ("Current Period ARR"). Current Period ARR includes any expansion and is net of contraction or attrition over the last 12 months, but does not include ARR from new customers in the current period. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the point-in-time dollar-based net retention rate.

Previous wording

Our ARR may fluctuate as a result of a number of factors, including customers’ satisfaction or dissatisfaction with our platform, pricing, competitive offerings, economic conditions, overall changes in our customers’ spending levels, and our ability to successfully execute on our strategic goals. ARR should be viewed independently of revenue and deferred revenue as ARR is an operating metric and is not intended to be combined with or to replace these items. For clarity, we use annualized invoiced amounts per solution SKU rather than revenue calculated in accordance with U.S. GAAP to calculate our ARR. Our invoiced amounts are not matched to transfer of control of the performance obligations associated with the underlying subscription licenses and maintenance and support obligations. This can result in timing differences between our GAAP revenue and ARR calculations. Generally speaking, our ARR calculation simply takes our invoiced amounts per solution SKU under a subscription license or maintenance agreement and divides that amount by the invoice term and multiplies by 365 days to derive the annualized value. In contrast, for our revenue calculated in accordance with GAAP, subscription licenses revenue derived from the sale of term-based licenses hosted on-premises is recognized at the point in time when the customer is able to use and benefit from our software, which is generally upon delivery to the customer or upon the commencement of the renewal term, and maintenance, support, and software-as-a-service ("SaaS") revenue is recognized ratably over the term of the arrangement. ARR is not a forecast of future revenue. Unlike ARR, revenue is impacted by contract start and end dates and duration. The timing of recognition of ARR is determined by contract billing structure, whereas billing structure will neither accelerate nor delay recognition of future revenue. For example, in a multi-year contract invoiced upfront, ARR is the annualized invoiced amount per solution SKU related to the final year of the contract assuming no reserve is applied, whereas revenue is determined by total contract value and timing of satisfaction of the underlying performance obligations. ARR does not include invoiced amounts associated with perpetual licenses or professional services. Investors should not place undue reliance on ARR as an indicator of our future or expected results. Moreover, our presentation of ARR may differ from similarly titled metrics presented by other companies and may not be comparable to such other metrics.

Current wording

Our ARR may fluctuate as a result of a number of factors, including customers’ satisfaction or dissatisfaction with our platform, pricing, competitive offerings, economic conditions, overall changes in our customers’ spending levels, and our ability to successfully execute on our strategic goals. ARR should be viewed independently of revenue and deferred revenue as ARR is an operating metric and is not intended to be combined with or to replace these items. For clarity, we use annualized invoiced amounts per solution SKU rather than revenue calculated in accordance with U.S. GAAP to calculate our ARR. Our invoiced amounts are not matched to transfer of control of the performance obligations associated with the underlying subscription licenses and maintenance and support obligations. This can result in timing differences between our U.S. GAAP revenue and ARR calculations. Generally speaking, our ARR calculation simply takes our invoiced amounts per solution SKU under a subscription license or maintenance agreement as of the end of an invoiced period and divides that amount by the corresponding term and multiplies by 365 days to derive the annualized renewal value. In contrast, for our revenue calculated in accordance with U.S. GAAP, subscription licenses revenue derived from the sale of term-based licenses hosted on-premises is recognized at the point in time when the customer is able to use and benefit from our software, which is generally upon delivery to the customer or upon the commencement of the renewal term, and maintenance, support, and software-as-a-service ("SaaS") revenue is recognized ratably over the term of the arrangement. ARR is not a forecast of future revenue. Unlike ARR, revenue is impacted by contract start and end dates and duration. The timing of recognition of ARR is determined by contract billing structure, whereas billing structure will neither accelerate nor delay recognition of future revenue. For example, in a multi-year contract invoiced upfront, ARR is the annualized invoiced amount per solution SKU related to the final year of the contract assuming no reserve is applied, whereas revenue is determined by total contract value and timing of satisfaction of the underlying performance obligations. ARR does not include invoiced amounts associated with perpetual licenses or professional services. Investors should not place undue reliance on ARR as an indicator of our future or expected results. Moreover, our presentation of ARR may differ from similarly titled metrics presented by other companies and may not be comparable to such other metrics.

Previous wording

Provision for income taxes consists of U.S. federal and state income taxes and income taxes in foreign jurisdictions in which we conduct business. We currently maintain a full valuation allowance on our U.S. federal and state, Romanian, and U.K. DTAs, as we have concluded that it is more likely than not that these DTAs will not be realized. Our effective tax rate is affected by tax rates in foreign jurisdictions and the relative amounts of income we earn in those jurisdictions, as well as by non-deductible expenses as permanent differences, and by changes in our valuation allowances.

Current wording

(Benefit from) provision for income taxes consists of U.S. federal and state income taxes and income taxes in foreign jurisdictions in which we conduct business. We currently maintain a full valuation allowance on our U.S. federal and state and Romania DTAs, as we have concluded that it is more likely than not that these DTAs will not be realized. Our effective tax rate is affected by tax rates in foreign jurisdictions and the relative amounts of income we earn in those jurisdictions, as well as by non-deductible expenses as permanent differences, and by changes in our valuation allowances.

Previous wording

Total revenue increased by $28.9 million, or 10%, for the three months ended July 31, 2024 compared to the three months ended July 31, 2023, due to a $34.7 million increase in subscription services revenue and a $1.3 million increase in professional services and other revenue, partially offset by a $7.0 million decrease in licenses revenue related in part to the transition to our Flex Offerings. As we continued to expand our sales efforts in the U.S. and internationally, total revenue grew across all regions. Of the growth in total revenue, 37% was attributable to new customers and 63% was attributable to existing customers. Subscription services revenue is recognized ratably over the subscription term; therefore, the increase in subscription services revenue is driven both by sales in prior periods for which we continue to provide maintenance and support and SaaS and by new sales in the current period.

Current wording

Total revenue increased by $28.7 million, or 9%, for the three months ended October 31, 2024 compared to the three months ended October 31, 2023, primarily due to a $39.4 million increase in subscription services revenue, partially offset by a $10.9 million decrease in licenses revenue related in part to the transition to our Flex Offerings. As we continued to expand our sales efforts in the U.S. and internationally, total revenue grew across all regions. Of the growth in total revenue, 39% was attributable to new customers and 61% was attributable to existing customers. Subscription services revenue is recognized ratably over the subscription term; therefore, the increase in subscription services revenue is driven both by sales in prior periods for which we continue to provide maintenance and support and SaaS and by new sales in the current period.

Previous wording

Total cost of revenue increased by $14.3 million, or 29%, for the three months ended July 31, 2024 compared to the three months ended July 31, 2023, primarily due to a $16.8 million increase in cost of subscription services revenue. The increase in cost of subscription services revenue was primarily driven by a $6.5 million increase in personnel-related expenses, which included a $4.3 million increase in salary-related and bonus expenses associated with both increased headcount and merit increases, a $1.5 million increase in stock-based compensation expense, and a $0.9 million aggregate increase in employee insurance costs and employer payroll taxes. Cost of subscription services revenue was also impacted by a $6.3 million increase in hosting and software services costs as a result of increased usage, and a $2.8 million increase in costs associated with the use of third-party vendors.

Current wording

Total cost of revenue increased by $13.8 million, or 28%, for the three months ended October 31, 2024 compared to the three months ended October 31, 2023, primarily due to a $14.8 million increase in cost of subscription services revenue. The increase in cost of subscription services revenue was primarily driven by an $8.4 million increase in third-party hosting and software services costs as a result of increased usage of our subscription services and a $5.1 million increase in personnel-related expenses, which included a $3.4 million increase in salary-related and bonus expenses associated with both increased headcount and merit increases, a $1.3 million increase in stock-based compensation expense, and a $0.8 million aggregate increase in employee insurance costs and employer payroll taxes. Cost of subscription services revenue was also impacted by a $1.0 million increase in costs associated with the use of third-party vendors.

Previous wording

Our gross margin decreased to 80% for the three months ended July 31, 2024 compared to 83% for the three months ended July 31, 2023 due to the aforementioned increase in cost of subscription services revenue driven by increased personnel and hosting costs.

Current wording

Our gross margin decreased to 82% for the three months ended October 31, 2024 compared to 85% for the three months ended October 31, 2023 due to decrease in the proportion of higher-margin licenses revenue and the aforementioned increase in cost of subscription services revenue driven by increased hosting and personnel costs.

Previous wording

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

Current wording

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

Previous wording

Total revenue increased by $74.5 million, or 13%, for the six months ended July 31, 2024 compared to the six months ended July 31, 2023, primarily due to a $73.5 million increase in subscription services revenue, related in part to the transition to our Flex Offerings. As we continued to expand our sales efforts in the U.S. and internationally, our revenue increased across all regions. Of the growth in total revenue, 27% was attributable to new customers and 73% was attributable to existing customers. Of the growth in total revenue attributable to existing customers, $8.0 million resulted from contract modifications wherein the revenue recognized originated from our existing balance of remaining performance obligations. Subscription services revenue is recognized ratably over the subscription term; therefore, the increase in subscription services revenue is driven by both sales in prior periods for which we continue to provide maintenance and support and SaaS, and by new sales in the current period.

Current wording

Total revenue increased by $103.2 million, or 11%, for the nine months ended October 31, 2024 compared to the nine months ended October 31, 2023, due to a $112.8 million increase in subscription services revenue and a $2.2 million increase in professional services and other revenue, partially offset by an $11.9 million decrease in licenses revenue, related in part to the transition to our Flex Offerings. As we continued to expand our sales efforts in the U.S. and internationally, our revenue increased across all regions. Of the growth in total revenue, 27% was attributable to new customers and 73% was attributable to existing customers. Of the growth in total revenue attributable to existing customers, $8.0 million resulted from contract modifications wherein the revenue recognized originated from our existing balance of remaining performance obligations. Subscription services revenue is recognized ratably over the subscription term; therefore, the increase in subscription services revenue is driven by both sales in prior periods for which we continue to provide maintenance and support and SaaS, and by new sales in the current period.

Previous wording

Total cost of revenue increased by $26.0 million, or 28%, for the six months ended July 31, 2024 compared to the six months ended July 31, 2023, primarily due to a $30.4 million increase in cost of subscription services revenue, partially offset by a $3.9 million decrease in cost of professional services revenue. The increase in cost of subscription services revenue was primarily driven by a $12.8 million increase in personnel-related expenses, which included an $8.8 million increase in salary-related and bonus expenses associated with both increased headcount and merit increases, a $2.6 million increase in stock-based compensation expense, and a $1.9 million aggregate increase in employee insurance costs and employer payroll taxes. Cost of subscription services revenue was also impacted by an $11.1 million increase in hosting and software services costs as a result of increased usage and a $5.1 million increase in costs associated with the use of third-party vendors. The decrease in cost of professional services and other revenue was primarily driven by a $3.3 million decrease in personnel-related expenses, which included a $2.1 million decrease in salary-related and bonus expenses, a $0.3 million decrease in stock-based compensation expense, and a $0.5 million aggregate decrease in employee insurance costs and employer payroll taxes. Cost of professional services and other revenue was also impacted by a $0.6 million decrease in costs associated with the use of third-party subcontractors to deliver professional services to our customers.

Current wording

Total cost of revenue increased by $39.8 million, or 28%, for the nine months ended October 31, 2024 compared to the nine months ended October 31, 2023, primarily due to a $45.3 million increase in cost of subscription services revenue, partially offset by a $4.4 million decrease in cost of professional services revenue. The increase in cost of subscription services revenue was primarily driven by a $19.6 million increase in third-party hosting and software services costs as a result of increased usage of our subscription services and a $17.9 million increase in personnel-related expenses, which included a $12.2 million increase in salary-related and bonus expenses associated with both increased headcount and merit increases, a $3.8 million increase in stock-based compensation expense, and a $2.7 million aggregate increase in employee insurance costs and employer payroll taxes. Cost of subscription services revenue was also impacted by a $6.0 million increase in costs associated with the use of third-party vendors. The decrease in cost of professional services and other revenue was primarily driven by a $3.6 million decrease in personnel-related expenses, which included a $2.3 million decrease in salary-related and bonus expenses and a $0.6 million aggregate decrease in employee insurance costs and employer payroll taxes.

Previous wording

Our gross margin decreased to 82% for the six months ended July 31, 2024 compared to 84% for the six months ended July 31, 2023 due to decrease in the proportion of higher-margin licenses revenue and increase in cost of subscription services revenue driven by increased personnel and hosting costs.

Current wording

Our gross margin decreased to 82% for the nine months ended October 31, 2024 compared to 84% for the nine months ended October 31, 2023 due to decrease in the proportion of higher-margin licenses revenue and the aforementioned increase in cost of subscription services revenue driven by increased hosting and personnel costs.

Previous wording

Sales and marketing expense increased by $44.3 million, or 13%, for the six months ended July 31, 2024 compared to the six months ended July 31, 2023. This increase was primarily attributable to a $29.5 million increase in personnel-related expenses, which included a $16.1 million increase in salary-related and bonus expenses as a result of both increased headcount and merit increases, a $6.7 million increase in employee termination benefits related to our fiscal year 2025 restructuring actions, a $2.1 million increase in payroll taxes, a $1.6 million increase in stock-based compensation expense, and a $1.5 million increase in general employee severance. Sales and marketing expense was also impacted by a $12.6 million increase in sales commission expenses as a result of higher amortization of capitalized contract acquisition costs and a $3.8 million aggregate increase in marketing and travel-related expenses mainly related to marketing events. These increases were partially offset by a $1.3 million decrease in depreciation and amortization expense.

Current wording

Sales and marketing expense increased by $40.2 million, or 8%, for the nine months ended October 31, 2024 compared to the nine months ended October 31, 2023. This increase was primarily attributable to a $26.9 million increase in personnel-related expenses, which included a $16.3 million increase in salary-related and bonus expenses as a result of both increased headcount and merit increases, a $8.5 million increase in employee termination benefits related to our fiscal year 2025 restructuring actions, a $3.7 million aggregate increase in payroll taxes and employee insurance costs, and a $1.3 million increase in general employee severance, partially offset by a $3.5 million decrease in stock-based compensation expense. Sales and marketing expense was also impacted by a $10.4 million increase in sales commission expenses as a result of higher amortization of capitalized contract acquisition costs and a $6.8 million aggregate increase in marketing and travel-related expenses due in part to our Forward VII conference. These increases were partially offset by a $2.3 million decrease in depreciation and amortization expense and a $1.1 million decrease in third-party consulting fees.

Previous wording

Research and development expense increased by $22.1 million, or 14%, for the six months ended July 31, 2024 compared to the six months ended July 31, 2023. The increase was primarily attributable to an $11.1 million increase in third-party software services and hosting costs as a result of increased usage. Research and development expense was also impacted by a $10.2 million increase in personnel-related expenses, which included a $4.5 million increase in salary-related expenses associated with both increased headcount and merit increases, a $4.0 million increase in stock-based compensation expense, a $1.3 million increase in employee termination benefits related to our fiscal year 2025 restructuring actions, and a $0.5 million increase in general employee severance.

Current wording

Research and development expense increased by $34.6 million, or 14%, for the nine months ended October 31, 2024 compared to the nine months ended October 31, 2023. The increase was primarily attributable to a $17.3 million increase in third-party software services and hosting costs as a result of increased usage and a $16.1 million increase in personnel-related expenses, which included a $7.6 million increase in stock-based compensation expense, a $6.7 million increase in salary-related and bonus expenses associated with both increased headcount and merit increases, and a $1.5 million increase in employee termination benefits related to our fiscal year 2025 restructuring actions.

Previous wording

General and administrative expense increased by $10.9 million, or 9%, for the six months ended July 31, 2024 compared to the six months ended July 31, 2023. This increase was primarily attributable to an $8.0 million increase in software service expenses, a $3.3 million increase in other taxes, a $3.2 million increase in third-party consulting fees, a $2.4 million increase due to a credit loss recovery recorded in the prior comparable period, a $2.3 million increase in charitable donations mainly driven by the increased fair value of our Class A common shares contributed to a donor-advised fund in the current year. These increases were partially offset by a $7.1 million decrease in personnel-related expenses, which included an $11.9 million decrease in stock-based compensation expense partially offset by a $2.1 million increase in employee insurance costs and a $1.8 million increase in employee termination benefits related to our fiscal year 2025 restructuring actions, as well as a $2.3 million decrease in commercial insurance costs.

Current wording

General and administrative expense increased by $4.9 million, or 3%, for the nine months ended October 31, 2024 compared to the nine months ended October 31, 2023. This increase was primarily attributable to a $9.9 million increase in software service and implementation costs, a $3.6 million increase in third-party consulting fees, a $2.7 million increase due to a credit loss recovery recorded in the prior comparable period, and a $2.3 million increase in charitable donations mainly driven by the increased fair value of our Class A common shares contributed to a donor-advised fund in the current year. These increases were partially offset by a $14.5 million decrease in personnel-related expenses, which included a $20.3 million decrease in stock-based compensation expense partially offset by a $2.7 million increase in employee termination benefits related to our fiscal year 2025 restructuring actions, a $2.3 million increase in employee insurance costs, and a $1.3 million increase salary-related and bonus expenses associated with both increased headcount and merit increases.

Previous wording

Other income, net increased by $6.6 million, or 56%, for the six months ended July 31, 2024 compared to the six months ended July 31, 2023, primarily due to a $6.5 million net increase in amortization on marketable securities and cash equivalents and a $3.3 million increase in gains from foreign currency transactions, partially offset by $2.1 million of legal expense related to shareholder litigation and a $1.1 million decrease in sublease income.

Current wording

Other income, net remained relatively constant for the nine months ended October 31, 2024 compared to the nine months ended October 31, 2023, primarily due to a $5.5 million net increase in amortization on marketable securities and cash equivalents partially offset by a $2.4 million decrease in legal expense related to shareholder litigation, a $1.5 million decrease in sublease income, and a $1.0 million decrease in gains from foreign currency transactions.

Previous wording

We have financed operations since our inception primarily through customer payments and net proceeds from sales of equity securities. Our principal uses of cash in recent periods have been to fund our operations, invest in capital expenditures, engage in various business acquisitions, and, more recently, repurchase shares of our Class A common stock. As of July 31, 2024, our principal sources of liquidity were cash, cash equivalents, and marketable securities totaling $1,743.4 million, and we had an accumulated deficit of $2,029.0 million. During the six months ended July 31, 2024, we reported a net loss of $114.8 million and net cash provided by operating activities of $146.4 million.

Current wording

We have financed operations since our inception primarily through customer payments and net proceeds from sales of equity securities. Our principal uses of cash in recent periods have been to fund our operations, invest in capital expenditures, engage in various business acquisitions, and, more recently, repurchase shares of our Class A common stock. As of October 31, 2024, our principal sources of liquidity were cash, cash equivalents, and marketable securities totaling $1,603.4 million, and we had an accumulated deficit of $2,039.7 million. For the nine months ended October 31, 2024, we reported a net loss of $125.5 million and net cash provided by operating activities of $174.5 million.

Previous wording

On September 1, 2023, our board of directors authorized a stock repurchase program, pursuant to which we may repurchase from time to time up to $500.0 million of our outstanding shares of Class A common stock. Refer to Note 10, Stockholders' Equity—Stock Repurchase Program for further details. On August 30, 2024 our board of directors authorized the repurchase of an additional $500.0 million of our Class A common stock. Refer to Note 14, Subsequent Events for further details.

Current wording

On September 1, 2023, our board of directors authorized a stock repurchase program, pursuant to which we may repurchase from time to time up to $500.0 million of our outstanding shares of Class A common stock. On August 30, 2024 our board of directors authorized the repurchase of an additional $500.0 million of our Class A common stock. Refer to Note 10, Stockholders' Equity—Stock Repurchase Program for further details.

Previous wording

Net cash provided by operating activities for the six months ended July 31, 2024 of $146.4 million was driven by cash collections from our customers, which were approximately 12% higher than during the six months ended July 31, 2023. These cash inflows were partially offset by cash payments for operating expenditures, primarily associated with the compensation of our teams, including fiscal year 2024 annual bonuses paid in the first quarter of fiscal year 2025. Other cash operating expenditures included payments for professional services, software, and office rent.

Current wording

Net cash provided by operating activities for the nine months ended October 31, 2024 of $174.5 million was driven by cash collections from our customers, which were approximately 16% higher than during the nine months ended October 31, 2023. These cash inflows were partially offset by cash payments for operating expenditures, primarily associated with the compensation of our teams, including fiscal year 2024 annual bonuses paid in the first quarter of fiscal year 2025. Other cash operating expenditures included payments related to our fiscal year 2025 workforce restructuring, and payments for professional services, software, and office rent.

Previous wording

Net cash provided by operating activities for the six months ended July 31, 2023 of $111.6 million was driven by cash collections from our customers, partially offset by cash payments for operating expenditures, primarily associated with the compensation of our teams, including annual bonuses paid in the first quarter of fiscal year 2024. Other cash operating expenditures included payments related to our fiscal 2023 workforce restructuring, which was concluded during the second quarter of fiscal year 2024, and payments for professional services, software, and office rent.

Current wording

Net cash provided by operating activities for the nine months ended October 31, 2023 of $153.5 million was driven by cash collections from our customers, partially offset by cash payments for operating expenditures, primarily associated with the compensation of our teams, including fiscal year 2023 annual bonuses paid in the first quarter of fiscal year 2024. Other cash operating expenditures included payments related to our fiscal year 2023 workforce restructuring, which was concluded during the second quarter of fiscal year 2024, and payments for professional services, software, and office rent.

Previous wording

Net cash used in investing activities for the six months ended July 31, 2024 of $5.9 million was primarily driven by $697.8 million in purchases of marketable securities and a $35.8 million investment in the H company, partially offset by $730.3 million in maturities of marketable securities.

Current wording

Net cash used in investing activities for the nine months ended October 31, 2024 of $28.8 million was driven by $1,162.2 million in purchases of marketable securities, a $35.8 million investment in the H company, and $7.5 million in capital expenditures, partially offset by $1,176.8 million in maturities of marketable securities.

Previous wording

Net cash used in investing activities for the six months ended July 31, 2023 of $370.7 million was primarily driven by $709.2 million in purchases of marketable securities and $2.9 million in capital expenditures, partially offset by $338.6 million in maturities of marketable securities.

Current wording

Net cash used in investing activities for the nine months ended October 31, 2023 of $430.9 million was primarily driven by $1,006.6 million in purchases of marketable securities, partially offset by $576.5 million in maturities of marketable securities.

Previous wording

Net cash used in financing activities for the six months ended July 31, 2024 of $260.9 million was primarily driven by $218.8 million in repurchases of Class A common stock under our stock repurchase program, $45.9 million in payments of tax withholdings on net settlement of equity awards, and $5.6 million in deferred cash consideration paid on the second anniversary of the acquisition of Re:infer LTD, partially offset by $8.6 million in proceeds from ESPP contributions.

Current wording

Net cash used in financing activities for the nine months ended October 31, 2024 of $433.5 million was primarily driven by $381.4 million in repurchases of Class A common stock under our stock repurchase program, $60.5 million in payments of tax withholdings on net settlement of equity awards, and $5.6 million in deferred cash consideration paid on the second anniversary of the acquisition of Re:infer LTD, partially offset by $12.9 million in proceeds from ESPP contributions and $0.9 million in proceeds from exercise of stock options.

Previous wording

Net cash used in financing activities for the six months ended July 31, 2023 of $45.8 million was driven by $52.8 million in payments of tax withholdings on the net settlement of equity awards, $5.9 million in deferred cash consideration paid on the first anniversary of the acquisition of Re:infer LTD, and $0.7 million in net payments of tax withholdings on sell-to-cover equity award transactions, partially offset by $9.6 million in proceeds from ESPP contributions and $3.9 million in proceeds from the exercise of stock options.

Current wording

Net cash used in financing activities for the nine months ended October 31, 2023 of $115.0 million was primarily driven by $75.5 million in payments of tax withholdings on net settlement of equity awards, $52.6 million in repurchases of Class A common stock under our stock repurchase program, and $5.9 million in deferred cash consideration paid on the first anniversary of the acquisition of Re:infer LTD, partially offset by $14.3 million in proceeds from ESPP contributions and $5.4 million in proceeds from exercise of stock options.

Previous wording

As of July 31, 2024, accrued compensation and benefits of $77.4 million are included in current liabilities on our condensed consolidated balance sheet. Refer to Note 8, Consolidated Balance Sheet Components—Accrued Expenses and Other Current Liabilities for details of additional short-term payroll-related obligations included in accrued expenses and other current liabilities.

Current wording

As of October 31, 2024, accrued compensation and benefits of $88.8 million are included in current liabilities on our condensed consolidated balance sheet. Refer to Note 8, Consolidated Balance Sheet Components—Accrued Expenses and Other Current Liabilities for details of additional short-term payroll-related obligations included in accrued expenses and other current liabilities.

Previous wording

Refer to Note 7, Operating Leases for more detailed information regarding timing of future lease payments, and Note 9, Commitments and Contingencies—Non-Cancelable Purchase Obligations for more detailed information regarding timing of purchase commitments. There were no significant changes during the six months ended July 31, 2024 from the contractual obligations disclosed in the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” set forth in the 2024 Form 10-K.

Current wording

Refer to Note 7, Operating Leases for more detailed information regarding timing of future lease payments, and Note 9, Commitments and Contingencies—Non-Cancelable Purchase Obligations for more detailed information regarding timing of purchase commitments. There were no significant changes during the nine months ended October 31, 2024 from the contractual obligations disclosed in the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” set forth in the 2024 Form 10-K.