Planet Labs PBC

Previous wording

Our proprietary data set and analytics are delivered pursuant to subscription and usage-based data licensing agreements and are accessed by our customers through our online platform and subscription APIs. We believe our efficient cost structure, one-to-many business model and differentiated data set have enabled us to grow our customer base across multiple vertical markets. As of April 30, 2024, our End of Period (“EoP”) Customer Count was 1,031 customers, which represented a 14% year-over-year growth when compared to April 30, 2023. For a definition of EoP Customer Count see the section titled “Key Operational and Business Metrics.” Over 90% of our ACV Book of Business (as defined below) consists of annual or multi-year contracts. Our average contract length continues to be approximately two years, weighted on an annual contract value basis.

Current wording

Our proprietary data set and analytics are delivered pursuant to subscription and usage-based data licensing agreements and are accessed by our customers through our online platform and subscription APIs. We believe our efficient cost structure, one-to-many business model and differentiated data set have enabled us to grow our customer base across multiple vertical markets. As of July 31, 2024, our End of Period (“EoP”) Customer Count was 1,012 customers, which represented 7% year-over-year growth when compared to July 31, 2023. For a definition of EoP Customer Count see the section titled “Key Operational and Business Metrics.” Over 90% of our ACV Book of Business (as defined below) consists of annual or multi-year contracts. Our average contract length continues to be approximately two years, weighted on an annual contract value basis.

Previous wording

Attracting new customers is an important factor affecting our future growth and operating performance. We believe our ability to attract customers will be driven by our ability to continue to improve our data and offer software and analytic solutions that make our data easier to consume and integrate into our customers’ workflows, our success in offering new data sets and products to solve customer problems, increases in our global sales presence and increases in our marketing investments. As part of this strategy, we have recently made Planet’s data available for purchase directly through our Sentinel Hub self-service platform, which facilitates rapid user adoption, particularly by empowering users to access our solutions without formal sales interaction. We believe this serves as a natural entry point for some of our smaller accounts, enabling them to realize the value of Planet’s offerings, leading to broader awareness of our solutions throughout their networks and organizations.

Current wording

Attracting new customers is an important factor affecting our future growth and operating performance. We believe our ability to attract customers will be driven by our ability to continue to improve our data and offer software and analytic solutions that make our data easier to consume and integrate into our customers’ workflows, our success in offering new data sets and products to solve customer problems, increases in our global sales presence and increases in our marketing investments. As part of this strategy, we have recently made Planet’s data available for purchase directly through our Planet Insights Platform, which facilitates rapid user adoption, particularly by empowering users to self-service our solutions without formal sales interaction. We believe this serves as a natural entry point for some of our smaller accounts, enabling them to realize the value of Planet’s offerings, leading to broader awareness of our solutions throughout their networks and organizations.

Previous wording

We define Net Dollar Retention Rate as the percentage of ACV generated by existing customers in a given period as compared to the ACV of all contracts at the beginning of the fiscal year from the same set of existing customers. We define existing customers as customers with an active contract with Planet. We believe our Net Dollar Retention Rate is a useful metric for investors as it can be used to measure our ability to retain and grow revenue generated from our existing customers, on which our ability to drive long-term growth and profitability is, in part, dependent. We use Net Dollar Retention Rate to assess customer adoption of new products, inform opportunities to make improvements across our products, identify opportunities to improve operations, and manage go to market functions, as well as to understand how much future growth may come from cross-selling and up-selling customers. Management applies judgment in determining the value of active contracts in a given period, as set forth in the definition of ACV above. Net Dollar Retention Rate increased to 100% for the three months ended April 30, 2024, as compared to 98% for the three months ended April 30, 2023, primarily due to expansions of certain government contracts.

Current wording

We define Net Dollar Retention Rate as the percentage of ACV generated by existing customers in a given period as compared to the ACV of all contracts at the beginning of the fiscal year from the same set of existing customers. We define existing customers as customers with an active contract with Planet. We believe our Net Dollar Retention Rate is a useful metric for investors as it can be used to measure our ability to retain and grow revenue generated from our existing customers, on which our ability to drive long-term growth and profitability is, in part, dependent. We use Net Dollar Retention Rate to assess customer adoption of new products, inform opportunities to make improvements across our products, identify opportunities to improve operations, and manage go to market functions, as well as to understand how much future growth may come from cross-selling and up-selling customers. Management applies judgment in determining the value of active contracts in a given period, as set forth in the definition of ACV above. Net Dollar Retention Rate decreased to 99% for the six months ended July 31, 2024, as compared to 102% for the six months ended July 31, 2023, primarily due to the timing of certain government contracts and continued challenges in the commercial vertical.

Previous wording

We assess two metrics for net dollar retention—Net Dollar Retention Rate, as described above, and Net Dollar Retention Rate including winbacks. A winback is a previously existing customer that was inactive at the start of the measurement period but has reactivated during the measurement period. The reactivation period must be within 24 months from the last active contract with the customer; otherwise, the customer is counted as a new customer and therefore excluded from the retention rate metrics. We define Net Dollar Retention Rate including winbacks as the percentage of ACV generated by existing customers and winbacks in a given period as compared to the ACV of all contracts at the beginning of the fiscal year from the same set of existing customers. We believe this metric is useful to investors as it captures the value of customer contracts that resume business with Planet after being inactive and thereby provides a quantification of Planet’s ability to recapture lost business. Management uses this metric to understand the adoption of our products and long-term customer retention, as well as the success of marketing campaigns and sales initiatives in re-engaging inactive customers. Beyond the judgments underlying managements’ calculation of Net Dollar Retention Rate set forth above, there are no additional assumptions or estimates made in connection with Net Dollar Retention Rate including winbacks. Net Dollar Retention Rate including winbacks increased to 101% for the three months ended April 30, 2024, as compared to 99% for the three months ended April 30, 2023, primarily due to expansions of certain government contracts.

Current wording

We assess two metrics for net dollar retention—Net Dollar Retention Rate, as described above, and Net Dollar Retention Rate including winbacks. A winback is a previously existing customer that was inactive at the start of the measurement period but has reactivated during the measurement period. The reactivation period must be within 24 months from the last active contract with the customer; otherwise, the customer is counted as a new customer and therefore excluded from the retention rate metrics. We define Net Dollar Retention Rate including winbacks as the percentage of ACV generated by existing customers and winbacks in a given period as compared to the ACV of all contracts at the beginning of the fiscal year from the same set of existing customers. We believe this metric is useful to investors as it captures the value of customer contracts that resume business with Planet after being inactive and thereby provides a quantification of Planet’s ability to recapture lost business. Management uses this metric to understand the adoption of our products and long-term customer retention, as well as the success of marketing campaigns and sales initiatives in re-engaging inactive customers. Beyond the judgments underlying managements’ calculation of Net Dollar Retention Rate set forth above, there are no additional assumptions or estimates made in connection with Net Dollar Retention Rate including winbacks. Net Dollar Retention Rate including winbacks decreased to 100% for the six months ended July 31, 2024, as compared to 103% for the six months ended July 31, 2023, primarily due to the timing of certain government contracts and continued challenges in the commercial vertical.

Previous wording

We define EoP Customer Count as the total count of all existing customers at the end of the period excluding customers that are exclusively Sentinel Hub self-service paying users. For EoP Customer Count, we define existing customers as customers with an active contract with us at the end of the reported period. For the purpose of this metric, we define a customer as a distinct entity that uses our data or services. We sell directly to customers, as well as indirectly through our partner network. If a partner does not provide the end customer’s name, then the partner is reported as the customer. Each customer, regardless of the number of active opportunities with us, is counted only once. For example, if a customer utilizes multiple products of Planet, we only count that customer once for purposes of EoP Customer Count. A customer with multiple divisions, segments, or subsidiaries are also counted as a single unique customer based on the parent organization or parent account. For EoP Customer Count, we do not include users that only utilize our self-service Sentinel Hub web based ordering system, which we acquired in August 2023, and which offers standard starter packages on a monthly or annual basis. We believe excluding these users from EoP Customer Count creates a more useful metric, as we view the Sentinel Hub starter packages as entry points for smaller accounts, leading to broader awareness of our solutions throughout their networks and organizations. We believe EoP Customer Count is a useful metric for investors and management to track as it is an important indicator of the broader adoption of our platform and is a measure of our success in growing our market presence and penetration. Management applies judgment as to which customers are deemed to have an active contract in a period, as well as whether a customer is a distinct entity that uses our data or services. The EoP Customer Count increased to 1,031 as of April 30, 2024, as compared to 903 as of April 30, 2023. The increase was primarily attributable to the increased demand for our data.

Current wording

We define EoP Customer Count as the total count of all existing customers at the end of the period excluding customers that are exclusively Sentinel Hub self-service paying users. For EoP Customer Count, we define existing customers as customers with an active contract with us at the end of the reported period. For the purpose of this metric, we define a customer as a distinct entity that uses our data or services. We sell directly to customers, as well as indirectly through our partner network. If a partner does not provide the end customer’s name, then the partner is reported as the customer. Each customer, regardless of the number of active opportunities with us, is counted only once. For example, if a customer utilizes multiple products of Planet, we only count that customer once for purposes of EoP Customer Count. A customer with multiple divisions, segments, or subsidiaries are also counted as a single unique customer based on the parent organization or parent account. For EoP Customer Count, we do not include users that only utilize our self-service Sentinel Hub web based ordering system, which we acquired in August 2023, and which offers standard starter packages on a monthly or annual basis. We believe excluding these users from EoP Customer Count creates a more useful metric, as we view the Sentinel Hub starter packages as entry points for smaller accounts, leading to broader awareness of our solutions throughout their networks and organizations. We believe EoP Customer Count is a useful metric for investors and management to track as it is an important indicator of the broader adoption of our platform and is a measure of our success in growing our market presence and penetration. Management applies judgment as to which customers are deemed to have an active contract in a period, as well as whether a customer is a distinct entity that uses our data or services. The EoP Customer Count increased to 1,012 as of July 31, 2024, as compared to 944 as of July 31, 2023. The increase was primarily attributable to the increased demand for our data.

Previous wording

Percent of Recurring ACV is the portion of the total EoP ACV Book of Business that is recurring in nature. We define EoP ACV Book of Business as the sum of the ACV of all contracts that are active on the last day of the period pursuant to the effective dates and end dates of such contracts, excluding customers that are exclusively Sentinel Hub self-service paying users. We define Percent of Recurring ACV as the dollar value of all data subscription contracts and the committed portion of usage-based contracts (excluding customers that are exclusively Sentinel Hub self-service paying users) divided by the total dollar value of all contracts in our EoP ACV Book of Business. We believe Percent of Recurring ACV is useful to investors to better understand how much of our revenue is from customers that have the potential to renew their contracts over multiple years rather than being one-time in nature. We track Percent of Recurring ACV to inform estimates for the future revenue growth potential of our business and improve the predictability of our financial results. There are no significant estimates underlying management’s calculation of Percent of Recurring ACV, but management applies judgment as to which customers have an active contract at a period end for the purpose of determining EoP ACV Book of Business, which is used as part of the calculation of Percent of Recurring ACV. Percent of Recurring ACV increased to 95% for the three months ended April 30, 2024, as compared to 93% for the three months ended April 30, 2023.

Current wording

Percent of Recurring ACV is the portion of the total EoP ACV Book of Business that is recurring in nature. We define EoP ACV Book of Business as the sum of the ACV of all contracts that are active on the last day of the period pursuant to the effective dates and end dates of such contracts, excluding customers that are exclusively Sentinel Hub self-service paying users. We define Percent of Recurring ACV as the dollar value of all data subscription contracts and the committed portion of usage-based contracts (excluding customers that are exclusively Sentinel Hub self-service paying users) divided by the total dollar value of all contracts in our EoP ACV Book of Business. We believe Percent of Recurring ACV is useful to investors to better understand how much of our revenue is from customers that have the potential to renew their contracts over multiple years rather than being one-time in nature. We track Percent of Recurring ACV to inform estimates for the future revenue growth potential of our business and improve the predictability of our financial results. There are no significant estimates underlying management’s calculation of Percent of Recurring ACV, but management applies judgment as to which customers have an active contract at a period end for the purpose of determining EoP ACV Book of Business, which is used as part of the calculation of Percent of Recurring ACV. Percent of Recurring ACV increased to 96% for the six months ended July 31, 2024, as compared to 92% for the six months ended July 31, 2023. The increase was primarily attributable to expansions on existing government and commercial contracts.

Previous wording

We define capital expenditures as purchases of property and equipment plus capitalized internally developed software development costs, which are included in our statements of cash flows from investing activities. We define Capital Expenditures as a Percentage of Revenue as the total amount of capital expenditures divided by total revenue in the reported period. Capital Expenditures as a Percentage of Revenue is a performance measure that we use to evaluate the appropriate level of capital expenditures needed to support demand for our data services and related revenue, and to provide a comparable view of our performance relative to other earth observation companies, which may invest significantly greater amounts in their satellites to deliver their data to customers. We use an agile space systems strategy, which means we invest in a larger number of significantly lower cost satellites and software infrastructure to automate the management of the satellites and to deliver our data to clients. As a result of our strategy and our business model, our capital expenditures may be more similar to software companies with large data center infrastructure costs. Therefore, we believe it is important to look at our level of capital expenditure investments relative to revenue when evaluating our performance relative to other earth observation companies or to other software and data companies with significant data center infrastructure investment requirements. We believe Capital Expenditures as a Percentage of Revenue is a useful metric for investors because it provides visibility to the level of capital expenditures required to operate our business and our relative capital efficiency. Capital Expenditures as a Percentage of Revenue increased to 19% for the three months ended April 30, 2024, as compared to 13% for the three months ended April 30, 2023. The increase was primarily attributable to an increase in capitalized labor and material related to the build of our next generation high resolution Pelican satellites and medium resolution satellites.

Current wording

We define capital expenditures as purchases of property and equipment plus capitalized internally developed software development costs, which are included in our statements of cash flows from investing activities. We define Capital Expenditures as a Percentage of Revenue as the total amount of capital expenditures divided by total revenue in the reported period. Capital Expenditures as a Percentage of Revenue is a performance measure that we use to evaluate the appropriate level of capital expenditures needed to support demand for our data services and related revenue, and to provide a comparable view of our performance relative to other earth observation companies, which may invest significantly greater amounts in their satellites to deliver their data to customers. We use an agile space systems strategy, which means we invest in a larger number of significantly lower cost satellites and software infrastructure to automate the management of the satellites and to deliver our data to clients. As a result of our strategy and our business model, our capital expenditures may be more similar to software companies with large data center infrastructure costs. Therefore, we believe it is important to look at our level of capital expenditure investments relative to revenue when evaluating our performance relative to other earth observation companies or to other software and data companies with significant data center infrastructure investment requirements. We believe Capital Expenditures as a Percentage of Revenue is a useful metric for investors because it provides visibility to the level of capital expenditures required to operate our business and our relative capital efficiency. Capital Expenditures as a Percentage of Revenue decreased to 27% for the three months ended July 31, 2024, as compared to 31% for the three months ended July 31, 2023. The decrease was primarily attributable to an increase in revenue primarily driven bygrowth in the Civil Government and Defense and Intelligence verticals. Capital Expenditures as a Percentage of Revenue increased to 23% for the six months ended July 31, 2024, as compared to 22% for the six months ended July 31, 2023. The increase was primarily attributable to the timing of capitalized labor and material purchases related to the build of our next generation high resolution Pelican satellites and medium resolution satellites.

Previous wording

Revenue increased $7.7 million, or 15%, to $60.4 million for the three months ended April 30, 2024 from $52.7 million for the three months ended April 30, 2023. The increase was primarily due to a $11.5 million increase from total customer growth worldwide, including new customers acquired from the Sinergise acquisition. The increase was partially offset by net contraction of existing customer contracts of $3.8 million, which was primarily due to slower development with the Commercial customers. EoP Customer Count increased approximately 14% to 1,031 as of April 30, 2024 from 903 as of April 30, 2023. The increase in revenue was primarily driven by growth with the Civil Government and Defense and Intelligence customers.

Current wording

Revenue increased $7.3 million, or 14%, to $61.1 million for the three months ended July 31, 2024 from $53.8 million for the three months ended July 31, 2023. The increase was primarily due to a $9.4 million increase from total customer growth worldwide, including new customers acquired from the Sinergise acquisition, which was partially offset by a $2.1 million reduction of existing customer contracts primarily in the Commercial vertical. EoP Customer Count increased approximately 7% to 1,012 as of July 31, 2024 from 944 as of July 31, 2023. The increase in revenue from new customers was primarily driven by growth in the Civil Government and Defense and Intelligence verticals.

Previous wording

Cost of revenue increased $4.2 million, or 17%, to $28.8 million for the three months ended April 30, 2024, from $24.6 million for the three months ended April 30, 2023. The increase was primarily due to a $1.5 million increase in depreciation expense, which was primarily due to a reduction of estimated useful lives made for certain high resolution satellites during the fiscal year ended January 31, 2024, and a $1.4 million increase in costs paid to solution partners and subcontractors. The increase was also partially due to a $0.6 million increase in hosting costs associated with an increase in archive data and growth in our customer base and a $0.5 million increase in amortization expense, which was primarily due to amortization for an intangible asset that was acquired in connection with the Sinergise acquisition in August 2023.

Current wording

Cost of revenue increased $1.3 million, or 5%, to $28.8 million for the three months ended July 31, 2024, from $27.5 million for the three months ended July 31, 2023. The increase was primarily due to a $1.2 million severance and termination benefits charge associated with the headcount reduction and a $0.9 million increase in costs paid to solution partners and subcontractors. The increase was also partially due to a $0.7 million increase in intangible asset amortization, which was primarily due to amortization for an intangible asset that was acquired in connection with the Sinergise acquisition in August 2023. These increases were partially offset by a $0.8 million decrease in depreciation expense, which was primarily due to certain high resolution satellites that have fully depreciated and a $0.6 million decrease in employee-related costs due to reduced headcount.

Previous wording

Interest income decreased $1.4 million, to $3.1 million for the three months ended April 30, 2024, from $4.5 million for the three months ended April 30, 2023. The decrease was primarily due to a decrease in the balances of our cash, cash equivalents and short-term investments.

Current wording

Interest income decreased $1.0 million to $2.8 million for the three months ended July 31, 2024, from $3.8 million for the three months ended July 31, 2023. The decrease was primarily due to a decrease in our short-term investment balances.

Previous wording

The change in fair value of warrant liabilities for both the three month periods ended April 30, 2024 and 2023 represents the change in fair value of the public and private placement warrants, which primarily fluctuates based on the change in trading price of our Class A common stock.

Current wording

The change in fair value of warrant liab ilities for both the three months ended July 31, 2024 and 2023 represents the change in fair value of the public and private placement warrants, which primarily fluctuates based on the change in trading price of our Class A common stock.

Previous wording

Other income, net was $1.1 million for the three months ended April 30, 2024 and primarily reflects the derecognition of a $1.3 million liability for which settlement is not considered probable. Other income, net was $0.1 million for the three months ended April 30, 2023 and primarily reflects realized and unrealized foreign currency exchange gains and losses.

Current wording

Other income (expense), net for the three months ended July 31, 2024 and July 31, 2023, primarily reflects realized and unrealized foreign currency exchange gains and losses.

Previous wording

Provision for income taxes was $0.4 million and $0.3 million for the three months ended April 30, 2024 and 2023, respectively. For the three months ended April 30, 2024 and 2023, the income tax expense was primarily driven by the current tax on foreign earnings. The effective tax rates for the three months ended April 30, 2024 and 2023 differed from the federal statutory tax rate primarily due to the valuation allowance on the majority of our U.S. and foreign deferred tax assets and foreign rate differences.

Current wording

Provision for income taxes was $0.9 million and $0.6 million for the three months ended July 31, 2024 and 2023, respectively. For the three months ended July 31, 2024 and 2023, the income tax expense was primarily driven by the current tax on foreign earnings. The effective tax rate for the three months ended July 31, 2024 and 2023 differed from the federal statutory tax rate primarily due to the valuation allowance on the majority of our U.S. and foreign deferred tax assets and foreign rate differences.

Previous wording

Research and development expenses decreased $2.6 million, or 9%, to $25.6 million for the three months ended April 30, 2024, from $28.2 million for the three months ended April 30, 2023. The decrease was primarily due to a $2.8 million decrease in costs for contractors and hardware utilized for research and development activities, a $0.8 million decrease in stock-based compensation expense, which was primarily due to a decline in expense related to earnout shares, and a $0.4 million decrease in employee travel expenses. These decreases were partially offset by a $0.9 million decrease in funding recognized for our research and development arrangements and a $0.8 million increase in depreciation expense associated with satellites classified as experimental.

Current wording

Research and development expenses decreased $2.1 million, or 4%, to $52.8 million for the six months ended July 31, 2024, from $54.9 million for the six months ended July 31, 2023. The decrease was primarily due a $5.1 million decrease in stock-based compensation expense, which was primarily due to forfeiture of awards in connection with certain employee departures, and due to a decline in expense related to earnout shares. The decrease was also partially due to a $5.0 million decrease in purchases of material utilized for research and development activities, and a $1.9 million decrease in employee-related costs due to reduced headcount. These decreases were partially offset by a $5.3 million decrease in funding recognized for our research and development arrangements and a $3.5 million severance and termination benefits charge associated with the headcount reduction.

Previous wording

General and administrative expenses decreased $2.3 million, or 11%, to $19.2 million for the three months ended April 30, 2024, from $21.5 million for the three months ended April 30, 2023. The decrease was primarily due to a $0.8 million decrease in legal fees and a $0.8 million decrease in stock-based compensation expense, which was primarily due to a decline in expense related to earnout shares. The decrease was also partially due to a $0.7 million decrease in our allowance for expected credit losses for accounts receivable.

Current wording

General and administrative expenses decreased $2.0 million, or 5%, to $40.1 million for the six months ended July 31, 2024, from $42.0 million for the six months ended July 31, 2023. The decrease was primarily due to a $1.5 million decrease in legal costs. The decrease was also partially due to a $1.2 million decrease in stock-based compensation, which was primarily due to a decline in expense related to earnout shares, a $0.8 million decrease in employee-related costs, due to reduced headcount, and a $0.6 million decrease in our allowance for expected credit losses for accounts receivable. These decreases were partially offset by $1.3 million of expense associated with the revaluation of the contingent consideration liability for the Sinergise customer consent escrow, and a $1.3 million severance and termination benefits charge associated with the headcount reduction.

Previous wording

•Adjusted EBITDA does not include severance payments made in conjunction with a reduction in headcount announced in August 2023, which reduces cash available to us;

Current wording

•Adjusted EBITDA does not include severance expense in conjunction with a reduction in headcount, which reduces cash available to us;

Previous wording

For remaining performance obligations as of April 30, 2024, the Company expects to recognize approximately 81% over the next 12 months, approximately 98% over the next 24 months, and the remainder thereafter. For Backlog as of April 30, 2024, the Company expects to recognize approximately 64% over the next 12 months, approximately 85% over the next 24 months, and the remainder thereafter.

Current wording

For remaining performance obligations as of July 31, 2024, the Company expects to recognize approximately 78% over the next 12 months, approximately 97% over the next 24 months, and the remainder thereafter. For Backlog as of July 31, 2024, the Company expects to recognize approximately 65% over the next 12 months, approximately 87% over the next 24 months, and the remainder thereafter.

Previous wording

As of April 30, 2024 and January 31, 2024, we had $107.4 million and $83.9 million, respectively, in cash and cash equivalents. Additionally, as of April 30, 2024 and January 31, 2024, we had short-term investments of $168.2 million and $215.0 million, respectively, which are highly liquid in nature and available for current operations. We believe our anticipated operating cash flows together with our cash on hand provide us with the ability to meet our obligations as they become due during the next 12 months.

Current wording

As of July 31, 2024 and January 31, 2024, we had $148.3 million and $83.9 million, respectively, in cash and cash equivalents. Additionally, as of July 31, 2024 and January 31, 2024, we had short-term investments of $101.1 million and $215.0 million, respectively, which are highly liquid in nature and available for current operations. We believe our anticipated operating cash flows together with our cash on hand provide us with the ability to meet our obligations as they become due during the next 12 months.

Previous wording

As of April 30, 2024, our principal contractual obligations and commitments include lease obligations for real estate and ground stations, purchase commitments for future satellite launch services, and minimum purchase commitments for hosting services from Google, LLC. Refer to Notes 6, 8, and 10 to our unaudited condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for more information regarding these cash requirements.

Current wording

As of July 31, 2024, our principal contractual obligations and commitments include lease obligations for real estate and ground stations, purchase commitments for future satellite launch services, and minimum purchase commitments for hosting services from Google, LLC. Refer to Notes 7, 9, and 11 to our unaudited condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for more information regarding these cash requirements.

Previous wording

Net cash used in operating activities for the three months ended April 30, 2023, primarily consisted of the net loss of$34.4 million, adjusted for non-cash items and changes in operating assets and liabilities. Non-cash items primarily included depreciation and amortization expense of $10.2 million and stock-based compensation expense of $15.4 million, which were partially offset by a change in fair value of warrant liabilities of $5.9 million. The net change in operating assets and liabilities primarily consisted of a $7.8 million decrease in deferred revenue and a $10.7 million decrease in accounts payable, accrued and other liabilities, which were partially offset by a $2.8 million decrease in prepaid expenses and other assets.

Current wording

Net cash used in operating activities for the six months ended July 31, 2024, primarily consisted of the net loss of $68.0 million, adjusted for non-cash items and changes in operating assets and liabilities. Non-cash items primarily included depreciation and amortization expense of $26.2 million and stock-based compensation expense of $24.6 million. The net change in operating assets and liabilities primarily consisted of a $4.1 million increase in accounts payable, accrued and other liabilities, and a $1.3 million decrease in prepaid expenses and other assets, which were partially offset by a $1.1 million decrease in deferred revenue.

Previous wording

Net cash used in operating activities for the three months ended April 30, 2024, primarily consisted of the net loss of$29.3 million, adjusted for non-cash items and changes in operating assets and liabilities. Non-cash items primarily included depreciation and amortization expense of $13.1 million and stock-based compensation expense of $13.1 million, which were partially offset by a change in fair value of warrant liabilities of $1.5 million. The net change in operating assets and liabilities primarily consisted of a $5.5 million decrease in accounts receivable and a $2.2 million increase in deferred hosting costs, which were partially offset by a $5.2 million decrease in accounts payable, accrued and other liabilities.

Current wording

Net cash used in operating activities for the six months ended July 31, 2023, primarily consisted of the net loss of $72.4 million, adjusted for non-cash items and changes in operating assets and liabilities. Non-cash items primarily included stock-based compensation expense of $32.0 million and depreciation and amortization expense of $22.4 million, which were partially offset by a change in fair value of warrant liabilities of $7.2 million. The net change in operating assets and liabilities primarily consisted of a $20.0 million increase in deferred revenue, which was partially offset by a $17.2 million decrease in accounts payable, accrued and other liabilities, and a $1.6 million increase in accounts receivable.

Previous wording

Net cash provided by investing activities for the three months ended April 30, 2024, primarily consisted of sales of available-for-sale securities of $43.1 million and maturities of available-for-sale securities of $32.2 million, partially offset by purchases of available-for-sale securities of $28.0 million, purchases of property and equipment of $9.9 million and purchases of licensed imagery of $4.0 million.

Current wording

Net cash provided by investing activities for the six months ended July 31, 2024, primarily consisted of sales of available-for-sale securities of $150.2 million and maturities of available-for-sale securities of $46.8 million, which were partially offset by purchases of available-for-sale securities of $81.7 million, purchases of property and equipment of $25.1 million, and purchases of licensed imagery of $4.3 million.

Previous wording

Net cash used in investing activities for the three months ended April 30, 2023, primarily consisted of purchases of property and equipment of $6.3 million and purchases of available-for-sale securities of $35.2 million, partially offset by sales and maturities of available-for-sale securities of $30.0 million.

Current wording

Net cash used in investing activities for the six months ended July 31, 2023, primarily consisted of purchases of available-for-sale securities of $127.7 million, purchases of property and equipment of $21.7 million, and capitalized internal-use software costs of $2.0 million, which were partially offset by maturities of available-for-sale securities of $106.8 million and sales of available-for-sale securities of $1.0 million.

Previous wording

Net cash provided by financing activities for the three months ended April 30, 2023, primarily consisted of proceeds from the exercise of common stock options of $3.3 million, partially offset by common stock withheld to satisfy employee tax withholding obligations of $1.9 million.

Current wording

Net cash provided by financing activities for the six months ended July 31, 2023, primarily consisted of proceeds from the exercise of common stock options of $6.4 million, partially offset by shares repurchased for tax withholdings on vesting of restricted stock units of $4.8 million.