Financial Analysis

Commitments and Contingencies Legal Matters From time to time, the Company may be subject to various claims and other legal matters arising in the ordinary course of business. The Company investigates these claims as they arise and accrues estimates for resolution of legal and other contingencies when losses are probable and estimable. The Company is not currently a party to any material legal proceedings nor is it aware of any pending or threatened litigation that could reasonably be expected to have a material adverse effect on its business, financial condition, results of operations, or cash flows. Warranties and Indemnification The Company has entered into service-level agreements with a portion of its customers defining levels of uptime reliability and performance and permitting those customers to receive credits if the Company fails to meet the defined levels of uptime. To date, the Company has not experienced any significant failures to meet defined levels of uptime reliability and performance as a result of those agreements and, as a result, the Company has not incurred or accrued any material liabilities related to these agreements in the financial statements. In the ordinary course of business, the Company may agree to indemnify customers, vendors, lessors, business partners, and other parties with respect to certain matters, including, but not limited to, losses arising out of the breach of such agreements, services to be provided by the Company, or from intellectu …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Debt and Financing Arrangements 2025 Convertible Senior Notes In June 2020, the Company issued an aggregate principal amount of $287.5 million of convertible senior notes due in 2025 (the 2025 Notes) in a private offering pursuant to an indenture dated June 25, 2020 (the 2025 Indenture). During the three months ended July 31, 2025, the Company repaid in cash $57.5 million in aggregate principal amount of the 2025 Notes, prior to the maturity date of July 1, 2025. 2028 Convertible Senior Notes In October 2023, the Company issued an aggregate principal amount of $402.5 million of convertible senior notes due in 2028 in a private offering pursuant to an indenture dated October 13, 2023 (the 2028 Indenture and, together with the 2025 Indenture, the Indentures). The total net proceeds from the debt offering, after deducting initial purchasers discounts and debt issuance costs of $12.0 million, were $390.4 million. The 2028 Notes are senior, unsecured obligations of the Company and accrue interest payable semiannually in arrears on April 15 and October 15 of each year, beginning on April 15, 2024, at a rate of 1.50% per year. The 2028 Notes will mature on October 15, 2028, unless such notes are converted, redeemed or repurchased earlier. Upon conversion, the Company will pay cash up to the aggregate principal amount of the 2028 Notes to be converted and pay or deliver, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock, at the Compa …

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Fair Value Measurements The Company measures its financial assets and liabilities at fair value each reporting period using a fair value hierarchy that prioritizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. A financial instruments classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value, as follows: Level 1Valuations based on observable inputs that reflect quoted prices for identical assets or liabilities in active markets. Level 2Valuations based on inputs that are directly or indirectly observable in the marketplace. Level 3Valuations based on unobservable inputs that are supported by little or no market activity. The following tables present information about the Companys financial assets that are required to be measured or disclosed at fair value using the above input categories as of the dates indicated (in thousands): As of July 31, 2025 Level 1 Level 2 Level 3 Total Money market funds $ 290,107 $ $ $ 290,107 U.S. Treasury securities 58,919 58,919 Commercial paper 6,011 6,011 Corporate debt securities 132,511 132,511 U.S. Government agency securities 30,701 30,701 Total $ 290,107 $ 228,142 $ $ 518,249 Included in cash equivalents $ 290,107 Included in investments $ 228,142 As of January 31, 2025 Level 1 Level 2 Level 3 Total Money market funds $ 298,937 $ $ $ 298,937 U.S. Treas …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxes The Company's (benefit from) provision for income taxes for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in such period. The Company's quarterly tax (benefit) provision, and estimate of its annual effective tax rate, is subject to variation due to several factors, including variability in pre-tax income (or loss), the mix of jurisdictions to which such income (or loss) relates, changes in how the Company does business, and tax law developments. The Company's estimated effective tax rate for the year differs from the U.S. statutory rate of 21% as a result of the Companys U.S. losses for which no benefit will be realized, the Companys foreign operations which are subject to tax rates that differ from those in the U.S., as well as the benefit for non-U.S. income tax credits. The Company recorded a benefit from income taxes of $1.9 million and $1.1 million for the three and six months ended July 31, 2025, respectively, and a provision for income taxes of $0.4 million and $0.6 million for the three and six months ended July 31, 2024, respectively. On July 4, 2025, the U.S. enacted tax reform legislation through the One Big Beautiful Bill Act (OBBBA). Included in this legislation are provisi …

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Leases Operating Leases The Company has entered into various non-cancellable operating leases for its office spaces with lease periods expiring between fiscal 2026 and fiscal 2032. The operating lease agreements generally provide for rental payments on a graduated basis and for options to renew, which could increase future minimum lease payments if exercised. Lease right-of-use assets and liabilities are recognized at the leases commencement date based on the present value of lease payments over the lease term. As the implicit rate of the Company's leases is not readily determinable, the Company uses its incremental borrowing rate based on the information available on the commencement date to determine the present value of lease payments. The lease right-of-use assets also include any lease payments made and exclude lease incentives such as tenant improvement allowances. The Companys operating leases typically include non-lease components such as common-area maintenance costs. The Company has elected a practical expedient that allows it to include non-lease components with lease payments for the purpose of calculating lease right-of-use assets and liabilities, to the extent that they are fixed. Non-lease components that are not fixed are expensed as incurred as variable lease payments. Leases with a term of one year or less are not recognized on the Companys condensed consolidated balance sheets, but rather are expensed on a straight-line basis over the lease term. In June 20 …

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Recent Accounting Pronouncements Not Yet Adopted In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . This ASU requires disaggregated information about a reporting entitys effective tax rate reconciliation as well as information on income taxes paid. This ASU is effective for fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of the new guidance on its condensed consolidated financial statements. In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. In January 2025, the FASB issued ASU No. 2025-01 to clarify the effective date of ASU 2024-03. ASU 2024-03 requires that at each interim and annual reporting period, an entity discloses the amounts of certain expenses included in each relevant expense caption. The newly required expense disclosures include certain amounts that are already required to be disclosed under current GAAP in the same disclosure as the other disaggregation requirements. The amendment also requires that an entity discloses a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively and disclose the total amount of selling expenses and, in annual reporting periods, an entitys definition of selling expenses. This ASU is effective for …

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Deferred Contract Costs Deferred contract costs, which primarily consist of deferred sales commissions, were $44.1 million and $45.1 million as of July 31, 2025 and January 31, 2025, respectively. Amortization expense for deferred contract costs was $5.7 million and $5.4 million for the three months ended July 31, 2025 and 2024, respectively, and $11.2 million and $10.7 million for the six months ended July 31, 2025 and 2024, respectively. There was no impairment charge related to the costs capitalized for the periods presented. Deferred Revenue and Performance Obligations The following table presents the changes to the Companys deferred revenue for the periods indicated (in thousands): Three months ended July 31, Six months ended July 31, 2025 2024 2025 2024 Deferred revenue, beginning of period $ 239,712 $ 223,593 $ 245,752 $ 228,161 Billings 113,613 110,231 227,378 216,835 Revenue recognized (123,411) (115,935) (243,216) (227,107) Deferred revenue, end of period $ 229,914 $ 217,889 $ 229,914 $ 217,889 For the three and six months ended July 31, 2025 and 2024, the majority of revenue recognized was from the deferred revenue balances at the beginning of each period. The transaction price allocated to the remaining performance obligations represents all future, non-cancelable contracted revenue that has not yet been recognized, inclusive of deferred revenue that has been invoiced and non-cancelable amounts that will be invoiced and recognized as revenue in future periods. The …

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Geographic Information Revenue by location is generally determined by the billing address of the customer. The following table sets forth revenue by geographic area for the periods indicated (in thousands): Three months ended July 31, Six months ended July 31, 2025 2024 2025 2024 United States $ 88,081 $ 84,315 $ 174,112 $ 165,107 International 35,330 31,620 69,104 62,000 Total $ 123,411 $ 115,935 $ 243,216 $ 227,107 Other than the United States, no other individual country accounted for 10% or more of revenue for the three and six months ended July 31, 2025 or 2024. As of July 31, 2025, 72% of the Companys long-lived assets, including property and equipment and right-of-use lease assets, were located in the United States, 15% were located in Canada, 11% were located in Portugal, 1% were located in the United Kingdom, and 1% were located in Chile. As of January 31, 2025, 69% of the Companys long-lived assets, including property and equipment and right-of-use lease assets, were located in the United States, 17% were located in Canada, 12% were located in Portugal, 1% were located in the United Kingdom, and 1% were located in Chile. …

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Summary of Significant Accounting Policies Concentrations of Risk and Significant Customers The Companys financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, available-for-sale investments, and accounts receivable. All of the Companys cash equivalents and investments are invested in money market funds, U.S. Treasury securities, commercial paper, corporate debt securities, or U.S. Government agency securities that management believes to be of high credit quality. The Companys cash, cash equivalents, and available-for-sale investments are spread across several different financial institutions. No single customer accounted for 10% or more of the total accounts receivable balance as of July 31, 2025 or January 31, 2025. No single customer accounted for 10% or more of revenue for the three and six months ended July 31, 2025 or 2024. Segment Information The Company manages its operations and allocates resources as one operating segment at the consolidated level. The Companys chief operating decision maker (CODM) is its chief executive officer. The CODM uses consolidated net income (loss) to measure segment profit or loss, allocate resources, make operating decisions, and assess performance through monitoring and evaluation of forecast versus actual results. Further, the CODM reviews and utilizes functional expenses (cost of revenue, sales and marketing, research and development, and general and administrative) at th …

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Subsequent EventsIn August 2025, the Companys Board of Directors authorized an additional $50.0 million under the 2025 Share Repurchase Program, thus allowing for the repurchase of shares of the Companys common stock in an aggregate amount of up to $200.0 million. Share repurchases under the 2025 Share Repurchase Program may be made from time to time through open market purchases, privately negotiated transactions, or other legally permissible means, including pursuant to Rule 10b5-1 trading plans. The 2025 Share Repurchase Program expires in March 2027, unless extended or shortened by the Board of Directors, and does not obligate the Company to acquire a specified number of shares, and may be suspended, modified, or terminated at any time, without prior notice. The number of shares to be repurchased will depend on market conditions …

SubsequentEventsTextBlock · excerpt; the full note is in the filing