Financial Analysis

Business Combination On May 27, 2026, the Company acquired 100% of the outstanding equity interests of Eigen Inc. (StackAI), a privately-held artificial intelligence company that offers a no-code automation platform, for aggregate cash consideration of $74.6 million. The Company paid $18.4 million of the consideration to an escrow account held by a third party for post-closing indemnification obligations. The acquisition is expected to help accelerate the Companys broader AI platform strategy. The transaction was accounted for as a business combination using the acquisition method of accounting in accordance with ASC 805. The Company allocated the purchase price to the tangible and identifiable intangible assets acquired and liabilities assumed based on their respective estimated fair values on the acquisition date, with the remaining balance allocated to goodwill. The preliminary allocation of purchase consideration was as follows (in thousands): Fair Value of Assets Acquired and Liabilities Assumed Amount Cash $ 3,010 Current assets 1,071 Intangible assets 18,200 Current liabilities (1,973) Deferred tax liability (2,327) Total identifiable net assets 17,981 Goodwill 56,645 Total purchase consideration $ 74,626 Goodwill represents the excess of the purchase consideration over the fair value of the identifiable net assets acquired. The goodwill is primarily attributed to the expected operational synergies, assembled workforce, and other intangible benefits that do not qualify …

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Commitments and Contingencies Standby Letters of Credit As of July 31, 2026, the Company had several letters of credit outstanding related to its operating leases totaling $21.7 million . The letters of credit expire at various dates between fiscal 2028 and fiscal 2035. Purchase Commitments In November 2024, the Company entered into a 60-month contract with Amazon Web Services (AWS) for hosting-related services, which replaced the Companys prior agreement with AWS and terminated the remaining commitments under the prior agreement. Pursuant to the terms of the November 2024 contract with AWS, the Company is required to spend $255.0 million over the term of the contract between December 2024 to November 2029. The commitment may be offset by up to $4.2 million in credits, of which $3.7 million are subject to the Company meeting certain conditions of the agreement. As of July 31, 2026, the Company had purchase commitments remaining of $172.0 million under this contract, which are not reflected on the Companys condensed consolidated balance sheet as of July 31, 2026. The Company may include certain agreements with third-party vendors purchased through AWS Marketplace within the AWS commitment, as spend for these agreements are eligible and expected to be used to meet the purchase commitment. Future commitments under the AWS contract as of July 31, 2026, are as follows (in thousands): Fiscal year ending January 31, Purchase Commitments Remainder of fiscal year 2027 $ 4,006 2028 54, …

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Fair Value Measurements The following table summarizes, for assets measured at fair value, the respective fair value and classification by level of input within the fair value hierarchy (in thousands): As of July 31, 2026 Level 1 Level 2 Level 3 Total Current Assets Cash equivalents Money market funds $ 71,788 $ $ $ 71,788 U.S. Treasury securities 2,751 $ 2,751 Total cash equivalents $ 74,539 $ $ $ 74,539 Marketable securities U.S. Treasury securities $ 64,548 $ $ $ 64,548 Corporate bonds 48,063 48,063 U.S. agency bonds 7,678 7,678 Total marketable securities $ 64,548 $ 55,741 $ $ 120,289 Total assets $ 139,087 $ 55,741 $ $ 194,828 As of January 31, 2026 Level 1 Level 2 Level 3 Total Current Assets Cash equivalents Money market funds $ 67,786 $ $ $ 67,786 U.S. Treasury securities 4,450 4,450 Total cash equivalents $ 72,236 $ $ $ 72,236 Marketable securities U.S. Treasury securities $ 142,306 $ $ $ 142,306 Commercial paper 8,446 8,446 Corporate bonds 73,760 73,760 U.S. agency bonds 9,698 9,698 Total marketable securities $ 142,306 $ 91,904 $ $ 234,210 Total assets $ 214,542 $ 91,904 $ $ 306,446 The following table summarizes the Company's investments in marketable securities on the condensed consolidated balance sheets (in thousands): As of July 31, 2026 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Current Assets U.S. Treasury securities $ 64,685 $ 25 $ (162) $ 64,548 Corporate bonds 48,175 43 (155) 48,063 U.S. agency bonds 7,698 (20) 7,67 …

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Goodwill and Intangible Assets, Net The changes in the carrying amounts of goodwill were as follows (in thousands): Carrying Amount Balance at January 31, 2026 $ Goodwill acquired 56,645 Balance at July 31, 2026 $ 56,645 Intangible assets, net consists of the following (in thousands): As of Weighted-Average Remaining Useful Life (in years) July 31, 2026 Developed technology 4.8 $ 9,500 Customer relationships 6.8 7,400 Trade names and trademark 4.8 1,300 Total gross intangible assets 18,200 Less: accumulated amortization (536) Total intangible assets, net $ 17,664 Amortization expense for intangible assets was $0.5 million for the three and six months ended July 31, 2026. There was no amortization expense for intangibles for the three and six months ended July 31, 2025. The estimated future amortization expense related to intangible assets held as of July 31, 2026 were as follows (in thousands): Fiscal year ending January 31, Amount Remainder of fiscal year 2027 $ 1,609 2028 3,217 2029 3,217 2030 3,217 2031 and thereafter 6,404 Total future amortization expense $ 17,664 …

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Income Taxes The Companys income tax benefit was $0.8 million and the Companys income tax expense was $0.7 million for the three and six months ended July 31, 2026, respectively, primarily due to a valuation allowance release from the StackAI acquisition and offset by income taxes in foreign jurisdiction. The Companys income tax expense was $1.4 million and $2.6 million for the three and six months ended July 31, 2025, respectively, primarily due to income taxes in foreign jurisdictions. On July 4, 2025, the United States enacted federal tax legislation commonly referred to as the One Big Beautiful Bill Act (the OBBB Act). Included in this legislation are provisions that allow for the immediate expensing of domestic research and development expenses, permanent extensions and modifications of certain provisions of the 2017 Tax Cuts and Jobs Act, and modifications to the U.S. international tax system. The Company evaluated the impact of the OBBB Act on its tax provision, valuation allowance, and uncertain tax positions. The OBBB Act did not have a material impact on the Company's financial statements. The Company maintains a full valuation allowance, and any change in net deferred tax assets from the OBBB Act would be accompanied by a corresponding adjustment to the valuation allowance. …

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Leases The Company leases real estate facilities under non-cancelable operating leases with various expiration dates through fiscal 2037. The Company has no lease agreements that are classified as finance leases. Future minimum lease payments under non-cancelable operating leases with initial lease terms in excess of one year included in the Companys total operating lease liabilities as of July 31, 2026 are as follows (in thousands): Fiscal year ending January 31, Operating Lease Payments Remainder of fiscal year 2027 $ 22,268 2028 45,472 2029 42,345 2030 37,960 2031 and thereafter 150,610 Total undiscounted operating lease payments $ 298,655 Less: imputed interest (77,388) Total operating lease liabilities $ 221,267 The Company has subleased certain office spaces to third parties and has classified the subleases as operating leases. The subleases have lease terms ranging from four to five years. Sublease income was $1.2 million and $2.4 million for the three and six months ended July 31, 2026, respectively. Sublease income was $0.6 million and $1.2 million for the three and six months ended July 31, 2025, respectively. The Company recognizes sublease income as a reduction of lease expense in the Companys condensed consolidated statements of operations. Operating lease amounts in the table above do not include sublease payments to be received of $14.7 million. As of July 31, 2026, the future total minimum sublease payments to be received were as follows (in thousands): Fiscal …

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Debt In April 2020, the Company entered into a five-year $40.0 million term loan agreement with SVB (the April 2020 Senior Secured Term Loan) which provided for a senior secured term loan facility, in an aggregate principal amount of up to $40.0 million to be used for the construction of the Companys corporate headquarters. Interest accrued and was payable monthly based on a floating rate per annum equal to the prime rate (per the Wall Street Journal) plus an applicable margin ranging from 0% to (1.0)% based on the Companys unrestricted cash balance at the lender. The April 2020 Senior Secured Term Loan was repaid in full and terminated in November 2022 in connection with a refinance. In November 2022, the Company entered into an agreement for a four-year credit facility (as amended on April 13, 2023, June 18, 2024, November 18, 2024, May 29, 2025, and February 26, 2026, the November 2022 Senior Secured Credit Facility) with SVB, which refinanced the April 2020 Senior Secured Term Loan. The November 2022 Senior Secured Credit Facility provides for senior secured credit facilities in the aggregate principal amount of $150.0 million, including a senior secured term loan facility in an aggregate principal amount of $50.0 million and a revolving loan facility in an aggregate principal amount of up to $100.0 million, including a $30.0 million letter of credit sub-facility, maturing on November 7, 2026. On March 27, 2023, First Citizens BancShares, Inc. announced that it entered in …

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"Recently Issued Accounting Pronouncements Not Yet Adopted In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40), and in January 2025, the FASB issued ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date, which requires that public entities disclose, on an annual and interim basis, disaggregated information about specific expense categories (including employee compensation, depreciation, and amortization) presented on the face of the income statement. As clarified by ASU 2025-01, the guidance is effective for the Companys fiscal years beginning February 1, 2027 and interim reporting periods within annual reporting periods beginning February 1, 2028. The Company is currently evaluating the impact of adoption of the standard on its consolidated financial statements and related disclosures. In September 2025, the FASB issued ASU 2025-06, ""IntangiblesGoodwill and OtherInternal-Use Software (Subtopic 350-40)"", which makes targeted improvements to the accounting for internal-use software. The guidance is effective for the Company's fiscal years and interim reporting periods beginning February 1, 2028, with early adoption permitted. The Company is currently evaluating the impact of adoption of the standard on its consolidated financial statements and related disclosures." …

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Restructuring In the fourth quarter of fiscal 2025, the Company approved a restructuring plan (the 2025 Restructuring Plan) intended to improve operational efficiencies and operating costs and better align the Companys workforce with its business needs, top strategic priorities, and key growth opportunities. The 2025 Restructuring Plan involved a reduction of the Companys workforce by approximately 5% globally. As of July 31, 2025, the Company had recorded cumulative total restructuring charges of $6.7 million related to the 2025 Restructuring Plan, consisting of $6.0 million of severance and related charges and $0.7 million of stock-based compensation expense. During the six months ended July 31, 2025, the Company recorded restructuring charges of $2.2 million and settled the restructuring liability. Separate from the 2025 Restructuring Plan, during the three months ended July 31, 2026, the Company recorded $2.5 million of restructuring charges related to an insignificant workforce reduction, consisting of $2.5 million of severance and related charges and less than $0.1 million of stock-based compensation benefit. As of July 31, 2026, the Company had $0.2 million restructuring charges reflected within accrued expenses and other current liabilities. Restructuring costs consist of the following activity for the periods presented (in thousands): Six Months Ended July 31, 2026 2025 Severance and related charges $ 2,537 $ 2,387 Stock-based compensation benefit (50) (170) Total $ …

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Revenues Deferred Revenue and Remaining Performance Obligations The Company recognized $98.7 million and $88.7 million of revenues during the three months ended July 31, 2026 and 2025, respectively, that were included in the deferred revenue balances at January 31, 2026 and 2025, respectively. The company recognized $244.9 million and $220.4 million of revenues during the six months ended July 31, 2026 and 2025, respectively, that were included in the deferred revenue balances at January 31, 2026 and 2025, respectively. Deferred revenue that will be recognized within the next 12 months is recorded as deferred revenue, current and the remaining portion is recorded as deferred revenue, noncurrent. As of July 31, 2026, the Company's remaining performance obligations from contracts with customers was $522.0 million, of which the Company expects to recognize approximately 81% as revenues over the next 12 months and the remainder thereafter. Deferred Contract Acquisition Costs Deferred contract acquisition costs are amortized over a period of benefit of three years. The period of benefit was estimated by considering factors such as historical customer attrition rates, the useful life of the Companys technology, and the impact of competition in the software-as-a-service industry. The following table summarizes the activity of deferred contract acquisition costs (in thousands): Six Months Ended July 31, 2026 2025 Beginning balance $ 44,346 $ 40,518 Capitalization of contract acquisit …

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Geographic Information The following tables set forth revenues and long-lived assets, which primarily consist of property and equipment, net and operating lease ROU assets, by geographic area for the periods presented below (in thousands): Revenues Three Months Ended July 31, Six Months Ended July 31, 2026 2025 2026 2025 United States $ 128,628 $ 116,499 $ 248,952 $ 228,036 International 87,801 80,437 172,572 156,167 Total revenues $ 216,429 $ 196,936 $ 421,524 $ 384,203 Revenues by geography are based on the shipping address of the customer. Long-Lived Assets As of July 31, 2026 January 31, 2026 United States $ 200,575 $ 202,567 International 39,140 19,168 Total long-lived assets $ 239,715 $ 221,735

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"Basis of Presentation and Summary of Significant Accounting Policies Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (GAAP) and include the accounts of the Companys wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated on consolidation. The unaudited condensed consolidated balance sheet as of January 31, 2026 included herein was derived from the audited financial statements as of that date, but does not include all disclosures, including certain notes required by GAAP on an annual reporting basis. In management's opinion, the unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to state fairly the balance sheet, statements of comprehensive loss, and stockholders' equity, and statements of cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year or any future period. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Companys Annual Report on Form 10-K filed with the SEC on March 13, 2026. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumpti …

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