UiPath, Inc.

Previous wording

Business Highlights for the Three Months Ended April 30, 2025:

Current wording

Business Highlights for the Three and Six Months Ended July 31, 2025:

Previous wording

•Annualized renewal run-rate ("ARR") at April 30, 2025 of $1,692.7 million increased 12% year-over-year.

Current wording

•Annualized renewal run-rate ("ARR") at July 31, 2025 of $1,723.4 million increased 11% year-over-year.

Previous wording

•Gross margin was 82% for the three months ended April 30, 2025, compared to 83% for the three months ended April 30, 2024.

Current wording

•Gross margin was 82% and 82%for the three andsix months ended July 31, 2025, respectively, compared to 80% and 82%for the three andsix months ended July 31, 2024, respectively.

Previous wording

•Cash flow from operations was $119.0 million for the three months ended April 30, 2025, compared to $100.0 million for the three months ended April 30, 2024.

Current wording

•Cash flow from operations was $160.6 million for the six months ended July 31, 2025, compared to $146.4 million for the six months ended July 31, 2024.

Previous wording

•Cash and cash equivalents, restricted cash, and marketable securities were $1,591.9 million as of April 30, 2025, compared to $1,724.1 million as of January 31, 2025.

Current wording

•Cash and cash equivalents, restricted cash, and marketable securities were $1,523.1 million as of July 31, 2025, compared to $1,724.1 million as of January 31, 2025.

Previous wording

On July 8, 2024, our board of directors approved the Fiscal Year 2025 Workforce Restructuring to reshape theorganization by streamlining our structure, particularly in operational and corporate functions, to better prioritize our go-to-market investments and focus our research and development investments on AI and driving innovation across our platform. The Fiscal Year 2025 Workforce Restructuring is substantially completed, with any remaining actions expected to be completed by July 31, 2025. Refer to Note 10, Commitments and Contingencies—Workforce Restructuring included in Part I, Item 1 of this Quarterly Report on Form 10-Q for more information.

Current wording

On July 8, 2024, our board of directors approved the Fiscal Year 2025 Workforce Restructuring to reshape theorganization by streamlining our structure, particularly in operational and corporate functions, to better prioritize our go-to-market investments and focus our research and development investments on AI and driving innovation across our platform. The Fiscal Year 2025 Workforce Restructuring was completed during the three months ended July 31, 2025. Refer to Note 10, Commitments and Contingencies—Workforce Restructuring included in Part I, Item 1 of this Quarterly Report on Form 10-Q for more information.

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. 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 April 30, 2025 and 2024, our ARR was $1,692.7 million and $1,507.7 million, respectively, representing a growth rate of 12%. Approximately 24% of this growth rate was due to new customers and 76% of this growth rate was due 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 108% and 118% as of April 30, 2025 and 2024, 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 July 31, 2025 and 2024, our ARR was $1,723.4 million and $1,550.6 million, respectively, representing a growth rate of 11%. Approximately 26% of this growth rate was due to new customers and 74% of this growth rate was due 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 108% and 115% as of July 31, 2025 and 2024, 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

Sales and marketing expenses consist primarily of personnel-related expenses associated with our sales and marketing teams and related sales support teams, including salaries and bonuses, stock-based compensation expense, and employee benefit costs. Sales and marketing expenses also include sales and partner commissions, marketing event costs, advertising costs, travel, trade shows, other marketing materials, and allocated overhead. We expect that over the longer term our sales and marketing expenses will decrease as a percentage of revenue, although this percentage may fluctuate from period to period due to timing and extent of expenses.

Current wording

Sales and marketing expenses consist primarily of personnel-related expenses associated with our sales and marketing teams and related sales support teams, including salaries and bonuses, stock-based compensation expense, and employee benefit costs. Sales and marketing expenses also include sales and partner commissions, marketing event costs, advertising costs, travel, trade shows, other marketing materials, amortization of acquired customer relationships, and allocated overhead. We expect that over the longer term our sales and marketing expenses will decrease as a percentage of revenue, although this percentage may fluctuate from period to period due to timing and extent of expenses.

Previous wording

Other (expense) income, net primarily consists of foreign exchange gains and losses. Other (expense) income, net also includes accretion of discounts and premiums on marketable securities.

Current wording

Other income (expense), net primarily consists of foreign exchange gains and losses. Other income (expense), net also includes accretion of discounts and premiums on marketable securities.

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 and Romania DTAs, as we have concluded as of April 30, 2025 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

Provision for income taxes consists of U.S. federal and state income taxes and income taxes in foreign jurisdictions in which we conduct business. Our effective tax rate is impacted 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. We currently maintain a full valuation allowance on our U.S. federal and state and Romania DTAs, as we have concluded as of July 31, 2025 that it is more likely than not that these DTAs will not be realized. However, given our current earnings and anticipated future earnings, we believe that there is a reasonable possibility that sufficient positive evidence may become available to allow us to conclude that a valuation allowance is no longer needed for our U.S. DTA within the next six months, and for our Romania DTA, or a portion thereof, within the next 18 months, which would result in income tax benefit in the period of the respective release.

Previous wording

Total cost of revenue increased by $8.5 million, or 15%, for the three months ended April 30, 2025 compared to the three months ended April 30, 2024, due to an $8.2 million increase in cost of professional services and other revenue and a $1.7 million increase in cost of subscription services revenue, partially offset by a$1.3 million decrease in cost of licenses revenue. The increase in cost of professional services and other revenue was primarily driven by a $5.9 million increase in costs associated with the use of third-party subcontractors to deliver professional services to our customers and a $1.7 million increase in personnel-related expenses, which included a $1.4 million increase in salary-related and bonus expenses and a $0.3 million increase in stock-based compensation expense. The $1.7 million increase in cost of subscription services revenue was primarily driven by a $3.4 million increase in third-party hosting and software services costs as a result of increased usage of our subscription services, partially offset by a $1.6 million decrease in personnel-related expenses, which included a $1.0 million decrease in salary-related and bonus expenses and a $0.4 million decrease in stock-based compensation expense associated with reduced average headcount. The decrease in cost of licenses revenue was primarily driven by decreased amortization expense.

Current wording

Total cost of revenue increased by $1.1 million, or 2%, for the three months ended July 31, 2025 compared to the three months ended July 31, 2024, driven by a $7.6 million increase in cost of professional services and other revenue, partially offset by a $5.3 million decrease in cost of subscription services revenue and a$1.2 million decrease in cost of licenses revenue. The increase in cost of professional services and other revenue was primarily driven by an $8.1 million increase in costs associated with the use of third-party subcontractors to deliver professional services to our customers, partially offset by a $0.8 million decrease in personnel-related expenses, which included a $0.7 million decrease in stock-based compensation expense. The decrease in cost of subscription services revenue was primarily driven by a $7.4 million decrease in personnel-related expenses, which included a $4.8 million decrease in salary-related and bonus expenses associated with reduced headcount and a $1.6 million decrease in stock-based compensation expense, partially offset by a $2.3 million increase in third-party hosting and software services costs as a result of increased usage of our subscription services. Cost of subscription revenue was also impacted by a $0.9 million decrease in costs associated with the use of third-party vendors. The decrease in cost of licenses revenue was primarily attributable to lower depreciation and amortization expense.

Previous wording

Sales and marketing expense decreased by $20.5 million, or 11%, for the three months ended April 30, 2025 compared to the three months ended April 30, 2024. The decrease was primarily attributable to a $21.2 million decrease in personnel-related expenses, which included a $12.6 million decrease in stock-based compensation expense, a $7.5 million decrease in salary-related and bonus expenses associated with reduced average headcount, a $1.2 million aggregate decrease in employee insurance costs and employer payroll taxes, a $1.1 million decrease in general employee severance, and an $0.8 million decrease in employer payroll tax expense related to employee equity transactions, partially offset by a $2.0 million increase in employee termination benefits related to our Fiscal Year 2025 Workforce Restructuring. Sales and marketing expense was also impacted by a $1.6 million increase in third-party consulting fees and a $1.4 million increase in marketing expenses, partially offset by a $1.5 million decrease in sales commissions expense.

Current wording

Sales and marketing expense decreased by $28.0 million, or 14%, for the three months ended July 31, 2025 compared to the three months ended July 31, 2024. The decrease was primarily attributable to a $30.7 million decrease in personnel-related expenses, which included a $14.1 million decrease in stock-based compensation expense, a $6.8 million decrease in salary-related and bonus expenses associated with reduced headcount, a $7.4 million decrease in employee termination benefits due to reduced activity under our Fiscal Year 2025 Workforce Restructuring, and a $1.4 million decrease in general employee severance. This decrease was partially offset by a $2.1 million increase in third-party consulting fees and a $1.2 million increase in sales commissions expense.

Previous wording

Research and development expense increased by $9.2 million, or 11%, for the three months ended April 30, 2025 compared to the three months ended April 30, 2024. The increase was primarily attributable to an $11.3 million increase in personnel-related expenses, which included a $6.4 million increase in salary-related and bonus expenses associated with both higher average headcount and merit increases and a $5.5 million increase in stock-based compensation expense, partially offset by a $0.9 million decrease in general employee severance. Research and development expense was also impacted by a $2.8 million decrease in hosting and software service costs.

Current wording

Research and development expense remained relatively constant for the three months ended July 31, 2025 compared to the three months ended July 31, 2024. A $3.8 million increase in personnel-related expenses was driven by a $3.4 million increase in stock-based compensation expense, a $0.9 million increase in salary-related and bonus expenses associated with higher headcount and merit increases, and a $0.5 million aggregate increase in employee insurance costs and employer payroll taxes, partially offset by a $1.4 million decrease in employee termination benefits due to reduced activity under our Fiscal Year 2025 Workforce Restructuring. This increase was offset by a $3.8 million decrease in hosting and software services costs.

Previous wording

Interest income decreased by $1.2 million, or 9%, for the three months ended April 30, 2025 compared to the three months ended April 30, 2024 as a result of a period-over-period decrease in our aggregate balance of cash and cash equivalents and marketable securities, as well as decreased interest rates.

Current wording

Interest income decreased by $1.4 million, or 10%, for the three months ended July 31, 2025 compared to the three months ended July 31, 2024 as a result of a period-over-period decrease in our aggregate balance of cash and cash equivalents and marketable securities, as well as decreased interest rates.

Previous wording

Provision for income taxes decreased by $1.0 million, or 25%, for the three months ended April 30, 2025 compared to the three months ended April 30, 2024, mainly driven by the lower non-U.S. operating profits.

Current wording

Provision for income taxes decreased by $2.1 million, or 54%, for the three months ended July 31, 2025 compared to the three months ended July 31, 2024, mainly driven by period-over-period change in the proportion of operating profits realized across jurisdictions.

Previous wording

Total revenue increased by $21.5 million, or 6%, for the three months ended April 30, 2025 compared to the three months ended April 30, 2024, primarily due to a $32.2 million increase in subscription services revenue, partially offset by an $11.8 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, 43% was attributable to new customers and 57% 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 $67.0 million, or 10%, for the six months ended July 31, 2025 compared to the six months ended July 31, 2024, due to a $75.9 million increase in subscription services revenue and a $3.1 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. Total revenue grew across all geographical regions. Of the growth in total revenue, 30% was attributable to new customers and 70% was attributable to existing customers. 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

Our gross margin decreased to 82% for the three months ended April 30, 2025 compared to 83% for the three months ended April 30, 2024 due to a decrease in the proportion of higher-margin licenses revenue and the aforementioned increase in cost of professional services and other revenue primarily driven by increased third-party subcontractor costs.

Current wording

Our gross margin remained relatively constant at 82% for the six months ended July 31, 2025 compared to 82% for the six months ended July 31, 2024, reflecting increased subscription services revenue and margin offset by a decrease in the proportion of higher-margin licenses revenue.

Previous wording

General and administrative expense decreased by $8.8 million, or 14%, for the three months ended April 30, 2025 compared to the three months ended April 30, 2024. The decrease was primarily attributable to a $5.2 million decrease in personnel-related expenses, which included a $5.0 million decrease in stock-based compensation expense and a $1.2 million decrease in salary-related and bonus expenses associated with reduced average headcount, partially offset by a $1.0 million increase in employee termination benefits related to our Fiscal Year 2025 Workforce Restructuring. General and administrative expense was also impacted by a $2.4 million decrease in charitable donations mainly driven by the decreased fair value of our Class A common shares contributed to a donor-advised fund in the current year, a $1.8 million decrease in other taxes in non-U.S. jurisdictions, and a $0.7 million decrease in commercial insurance costs. These decreases were partially offset by a $2.1 million increase in third-party advisory fees.

Current wording

General and administrative expense decreased by $19.5 million, or 15%, for the six months ended July 31, 2025 compared to the six months ended July 31, 2024. This decrease was primarily driven by an $11.4 million decrease in personnel-related expenses, which included an $8.4 million decrease in stock-based compensation expense, a $1.2 million decrease in employee termination benefits due to reduced activity under our Fiscal Year 2025 Workforce Restructuring, and a $1.0 million decrease in salary-related and bonus expenses associated with reduced headcount. General and administrative expense was also impacted by a $4.4 million decrease in other taxes in non-U.S. jurisdictions, a $2.4 million decrease in charitable donations mainly driven by the decreased fair value of our Class A common shares contributed to a donor-advised fund in the current year, and a $1.0 million decrease in software service and implementation costs. These decreases were partially offset by a $2.4 million increase in third-party advisory fees.

Previous wording

Other expense, net increased by $26.6 million for the three months ended April 30, 2025 compared to the three months ended April 30, 2024, primarily due to a $15.9 million increase in losses from foreign currency transactions as a result of the lower value of the U.S. dollar during the three months ended April 30, 2025, a $5.6 million decrease in accretion of net discounts on marketable securities, and a $5.1 million increase in legal expense related to shareholder litigation.

Current wording

Other expense, net increased by$22.8 million for the six months ended July 31, 2025 compared to the six months ended July 31, 2024, primarily due to an $11.6 million decrease in accretion of net discounts on marketable securities, a $6.5 million increase in losses from foreign currency transactions, and a $5.1 million increase in legal expense related to shareholder litigation.

Previous wording

As of April 30, 2025, our principal sources of liquidity were cash, cash equivalents, and marketable securities totaling $1,591.5 million, and we had an accumulated deficit of $2,010.4 million. For the three months ended April 30, 2025, we reported a net loss of $22.6 million and net cash provided by operating activities of $119.0 million. Cash generated by our operations in recent periods has principally been used to fund working capital requirements such as personnel and facilities costs, invest in capital expenditures, engage in various business acquisitions, and repurchase shares of our Class A common stock.

Current wording

As of July 31, 2025, our principal sources of liquidity were cash, cash equivalents, and marketable securities totaling $1,522.6 million, and we had an accumulated deficit of $2,008.8 million. For the six months ended July 31, 2025, we reported a net loss of $21.0 million and net cash provided by operating activities of $160.6 million. Cash generated by our operations in recent periods has principally been used to fund working capital requirements such as personnel and facilities costs, invest in capital expenditures, engage in various business acquisitions, and repurchase shares of our Class A common stock.

Previous wording

Our future capital requirements will depend on many factors, including our revenue growth rate, sales of our products and services, license renewal activity, the timing and the amount of cash received from customers, the expansion of sales and marketing activities, the timing and extent of spending to support development efforts, the introduction of new and enhanced products, the continuing market adoption of our products, expenses associated with international expansion, the timing and extent of capital expenditures to invest in existing and new office spaces, and the timing and extent of stock repurchases. We may in the future enter into arrangements to acquire or invest in complementary businesses, products, and technologies. We may be required to seek additional equity or debt financing. In the event that we require additional financing, we may not be able to raise such financing on terms acceptable to us or at all. If we are unable to raise additional capital or generate cash flows necessary to expand our operations and invest in continued innovation, we may not be able to compete successfully, which would harm our business, operations, and financial condition.

Current wording

Our future capital requirements will depend on many factors, including our revenue growth rate, sales of our products and services, license renewal activity, the timing and the amount of cash received from customers, the expansion of sales and marketing activities, the timing and extent of spending to support development efforts, the introduction of new and enhanced products, the continuing market adoption of our products, expenses associated with international expansion, the timing and extent of capital expenditures to invest in existing and new office spaces, and the timing and extent of stock repurchases. We may in the future enter into arrangements to acquire or invest in complementary businesses or assets. We may be required to seek additional equity or debt financing. In the event that we require additional financing, we may not be able to raise such financing on terms acceptable to us or at all. If we are unable to raise additional capital or generate cash flows necessary to expand our operations and invest in continued innovation, we may not be able to compete successfully, which would harm our business, operations, and financial condition.

Previous wording

We believe that our existing cash and cash equivalents, marketable securities, and payments from customers will be sufficient to fund our anticipated cash requirements for the next twelve months and the long term.

Current wording

We believe that our existing cash and cash equivalents, marketable securities, and payments from customers will be sufficient to fund our anticipated cash requirements for the next 12 months and the long term.

Previous wording

Net cash provided by operating activities for the three months ended April 30, 2025 of $119.0 million was driven by cash collections from our customers, which were approximately 2% higher than during the three months ended April 30, 2024. These cash inflows were partially offset by cash payments for operating expenditures, primarily associated with the compensation of our teams, including fiscal year 2025 annual bonuses paid in the first quarter of fiscal year 2026. Other cash operating expenditures included payments related to our Fiscal Year 2025 Workforce Restructuring and payments for professional services, software, and office rent.

Current wording

Net cash provided by operating activities for the six months ended July 31, 2025 of $160.6 million was driven by cash collections from our customers, with cash collections approximately 1% lower than during the six months ended July 31, 2024. These cash inflows were partially offset by cash payments for operating expenditures, primarily associated with the compensation of our teams, including fiscal year 2025 annual bonuses paid in the first quarter of fiscal year 2026. 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 three months ended April 30, 2024 of $100.0 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 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 six months ended July 31, 2024 of $146.4 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 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.

Previous wording

Net cash used in investing activities for the three months ended April 30, 2025 of $79.9 million was driven by $153.4 million in purchases of marketable securities, a net payment of $24.8 million in connection with the acquisition of Peak, and $12.8 million in capital expenditures primarily related to leasehold improvements, partially offset by $111.1 million in maturities of marketable securities.

Current wording

Net cash used in investing activities for the six months ended July 31, 2025 of $80.6 million was driven by $300.1 million in purchases of marketable securities, a net payment of $24.8 million in connection with the acquisition of Peak, and $12.8 million in capital expenditures primarily related to leasehold improvements, partially offset by $257.1 million in maturities of marketable securities.

Previous wording

Net cash provided by investing activities for the three months ended April 30, 2024 of $35.8 million was primarily driven by $360.1 million in maturities of marketable securities, partially offset by $323.1 million in purchases of marketable securities.

Current 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.

Previous wording

Net cash used in financing activities for the three months ended April 30, 2025 of $235.2 million was primarily driven by $227.5 million in repurchases of Class A common stock under our stock repurchase program and $12.2 million in payments of tax withholdings on net settlement of equity awards, partially offset by $4.2 million in proceeds from ESPP contributions.

Current wording

Net cash used in financing activities for the six months ended July 31, 2025 of $346.8 million was primarily driven by $329.1 million in repurchases of Class A common stock under our stock repurchase program and $26.3 million in payments of tax withholdings on net settlement of equity awards, partially offset by $8.1 million in proceeds from ESPP contributions.

Previous wording

Net cash used in financing activities for the three months ended April 30, 2024 of $45.7 million was primarily driven by $29.0 million in payments of tax withholdings on net settlement of equity awards and $22.0 million in repurchases of Class A common stock under our stock repurchase program, partially offset by $4.9 million in proceeds from ESPP contributions.

Current 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.

Previous wording

As of April 30, 2025, accrued compensation and benefits of $45.0 million are included in current liabilities on our condensed consolidated balance sheet. Refer to Note 9, Condensed 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 July 31, 2025, accrued compensation and benefits of $65.9 million are included in current liabilities on our condensed consolidated balance sheet. Refer to Note 9, Condensed 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 8, Operating Leases for more detailed information regarding timing of future lease payments, and Note 10, Commitments and Contingencies—Non-Cancelable Purchase Obligations for more detailed information regarding timing of purchase commitments. There were no significant changes during the three months ended April 30, 2025 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 2025 Form 10-K.

Current wording

Refer to Note 8, Operating Leases for more detailed information regarding timing of future lease payments, and Note 10, Commitments and Contingencies—Non-Cancelable Purchase Obligations for more detailed information regarding timing of purchase commitments with terms of 12 months or longer. During the six months ended July 31, 2025, we entered into a purchase commitment for hosting services for$199.8 million. There were no other significant changes 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 2025 Form 10-K.