Financial Analysis

Business Combinations Fiscal 2026 Crunchy Data Solutions, Inc. On June 6, 2025, the Company acquired all of the outstanding capital stock of Crunchy Data Solutions, Inc. (Crunchy Data), a privately-held company that provides PostgreSQL technology, for $164.5 million in cash. The Company acquired Crunchy Data primarily for its talent and developed technology. The Company has accounted for this transaction as a business combination. The purchase consideration was preliminarily allocated to assets acquired and liabilities assumed based on their respective estimated fair values as of the date of acquisition. During the three months ended October 31, 2025, the Company recorded measurement period adjustments which did not have material impacts on goodwill. The preliminary allocation of purchase consideration, inclusive of measurement period adjustments, was as follows: Estimated Fair Value (in thousands) Estimated Weighted-Average Useful Life (in years) Cash $ 221 Accounts receivable 4,323 Developed technology intangible assets 46,000 5 Customer relationships intangible assets 12,000 1.6 Deferred revenue (12,028) Other net tangible liabilities (897) Deferred tax liabilities, net (1) (3,405) Total identifiable net assets 46,214 Goodwill 118,237 Total purchase consideration $ 164,451 ________________ (1) Deferred tax liabilities, net primarily relate to the intangible asset acquired and the amount presented is net of deferred tax assets. The fair value of the developed technology int …

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Commitments and Contingencies Operating Leases The Company leases its facilities for office space under non-cancelable operating leases with various expiration dates through fiscal 2039. Certain lease agreements include options to renew or terminate the lease, which are not reasonably certain to be exercised and therefore are not factored into the determination of lease payments. During the nine months ended October 31, 2025, the Company recognized impairment charges of $87.9 million for operating lease right-of-use assets, and $20.8 million for property and equipment, net, primarily relating to the cease-use of its San Mateo office facility. These impairment charges represent the amounts by which the carrying values of the asset groups exceeded their estimated fair values, and were recorded as general and administrative expenses on the condensed consolidated statement of operations. The fair values of the impaired asset groups were estimated using discounted cash flow models (income approach) based on market participant assumptions, including the expected downtime prior to the commencement of future subleases, projected sublease income over the remaining lease periods, and discount rates to reflect the level of risk associated with receiving future cash flows. These assumptions are classified within Level 3 inputs of the fair value hierarchy. The fair values of the impaired asset groups are not material. As of October 31, 2025, the Company had committed $72.3 million for lea …

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Revenue consists of the following (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2025 2024 2025 2024 Product revenue $ 1,158,377 $ 900,282 $ 3,245,686 $ 2,519,119 Professional services and other revenue 54,532 41,812 154,266 120,507 Total $ 1,212,909 $ 942,094 $ 3,399,952 $ 2,639,626

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Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows: Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. The following table presents the fair value hierarchy for the Companys assets and liabilities measured at fair value on a recurring basis as of October 31, 2025 (in thousands): Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 1,117,544 $ $ $ 1,117,544 Time deposits 116,675 116,675 U.S. government securities and agency securities 104,907 104,907 Commercial paper 60,161 60,161 Corporate notes and bonds 1,824 1,824 Short-term investments: Corp …

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Intangible Assets and Goodwill Intangible Assets, Net Intangible assets, net consisted of the following (in thousands): October 31, 2025 Gross Accumulated Amortization Net Finite-lived intangible assets: Developed technology $ 317,364 $ (131,191) $ 186,173 Developer community 154,900 (109,618) 45,282 Assembled workforce 55,732 (44,533) 11,199 Customer relationships 16,400 (4,432) 11,968 Patents 8,874 (8,609) 265 Other 1,311 (44) 1,267 Total finite-lived intangible assets $ 554,581 $ (298,427) $ 256,154 Indefinite-lived intangible assetstrademarks 426 Total intangible assets, net $ 256,580 January 31, 2025 Gross Accumulated Amortization Net Finite-lived intangible assets: Developed technology $ 277,063 $ (92,033) $ 185,030 Developer community 154,900 (86,472) 68,428 Assembled workforce 55,732 (36,929) 18,803 Patents 8,874 (8,005) 869 Customer relationships 4,400 (328) 4,072 Total finite-lived intangible assets $ 500,969 $ (223,767) $ 277,202 Indefinite-lived intangible assetstrademarks 826 Total intangible assets, net $ 278,028 Amortization expense of intangible assets was $28.9 million and $80.8 million for the three and nine months ended October 31, 2025, respectively, and $24.1 million and $71.4 million for the three and nine months ended October 31, 2024, respectively. Cost and accumulated amortization of fully amortized intangible assets are removed from the Company's consolidated balance sheets when they are no longer in use. As of October 31, 2025, future amortization e …

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Income Taxes The Company computes its tax provision for interim periods by applying the estimated annual effective tax rate to year-to-date pre-tax income from recurring operations and adjusting for discrete tax items arising in that quarter. The Company had an effective tax rate of (1.3%) and (0.9%) for the three and nine months ended October 31, 2025, respectively, and (0.6%) and (0.9%) for the three and nine months ended October 31, 2024, respectively. The Company has incurred U.S. operating losses and has minimal profits in foreign jurisdictions. The Company has evaluated all available evidence, both positive and negative, including historical levels of income and expectations and risks associated with estimates of future taxable income, and has determined that it is more likely than not that its net deferred tax assets will not be realized in the United States and the United Kingdom. Due to uncertainties surrounding the realization of the deferred tax assets, the Company maintains a full valuation allowance against its net deferred tax assets. The Company is subject to income taxes in the United States and numerous foreign jurisdictions. As of October 31, 2025, tax years 2012 and forward generally remain open for examination for U.S. federal and state tax purposes, and tax years 2020 and forward generally remain open for examination for foreign tax purposes. The Company has applied ASC 740 and determined that it has uncertain tax positions giving rise to unrecognized tax …

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Convertible Senior Notes In September 2024, the Company issued an aggregate principal amount of $2.3 billion of convertible senior notes in a private placement to qualified institutional buyers, comprising of (i) $1.15 billion aggregate principal amount of 0% convertible senior notes due 2027 (2027 Notes) and (ii) $1.15 billion aggregate principal amount of 0% convertible senior notes due 2029 (2029 Notes, and together with the 2027 Notes, the Notes). Each series of Notes was issued pursuant to separate indentures, as supplemented (each an Indenture and together, the Indentures), between the Company and U.S. Bank Trust Company, National Association, as trustee. The Notes are general, senior unsecured obligations of the Company. The 2027 Notes will mature on October 1, 2027 and the 2029 Notes will mature on October 1, 2029, in each case unless earlier converted, redeemed, or repurchased. Neither the 2027 Notes nor the 2029 Notes bear regular interest, and the principal amount of the Notes will not accrete. The Company may elect or be required to pay special interest on the Notes under certain circumstances in accordance with the terms of the applicable Indenture. Special interest, if any, will be payable semiannually in arrears on April 1 and October 1 of each year, beginning on April 1, 2025. The total proceeds from the issuance of the Notes were approximately $2.27 billion, net of $31.2 million of debt issuance costs. The following table presents the details of each series o …

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Recently Issued Accounting Pronouncements Not Yet Adopted In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires annual disclosure on disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. This guidance is effective for the Company for its fiscal year beginning February 1, 2025 on a prospective basis. Early adoption and retrospective application are permitted. The Company is currently evaluating the impact of the adoption of this guidance on its disclosures. In November 2024, the FASB issued ASU 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses , which requires disclosure, on an annual and interim basis, of specified information about certain costs and expenses in the notes to financial statements. This guidance is effective for the Company for its fiscal year beginning February 1, 2027 and interim periods within its fiscal year beginning February 1, 2028 on either a prospective or retrospective basis. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this guidance on its disclosures. In July 2025, the FASB issued ASU 2025-05, Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets , which provides a practical expedient related to the estimation of expected cred …

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Related Party Transactions A member of the Companys board of directors currently serves as the Chief Executive Officer of a privately-held company (Related Party), which has been the Companys customer since 2018. In July 2025, the Company entered into an additional customer agreement with the Related Party for a term of three years with a total contract value of $67.5 million. In August 2025, the Company also entered into a vendor agreement with the Related Party for a term of five months with a total contract value of $1.1 million. With respect to the Related Party, the Company recognized $6.7 million and $17.4 million of revenue for the three and nine months ended October 31, 2025, respectively, and $3.3 million and $9.0 million of revenue for the three and nine months ended October 31, 2024, respectively. As of October 31, 2025 and January 31, 2025, the Company did not have material accounts receivable balance due from the Related Party. During the nine months ended October 31, 2025 and 2024, as a minority investor, the Company made strategic investments of approximately $20.0 million and $5.0 million, respectively, by purchasing non-marketable equity securities issued by the Related Party. …

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Revenue, Accounts Receivable, Deferred Revenue, and Remaining Performance Obligations Disaggregation of Revenue Revenue consists of the following (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2025 2024 2025 2024 Product revenue $ 1,158,377 $ 900,282 $ 3,245,686 $ 2,519,119 Professional services and other revenue 54,532 41,812 154,266 120,507 Total $ 1,212,909 $ 942,094 $ 3,399,952 $ 2,639,626 Revenue by geographic area, based on the location of the Companys customers (or end-customers under reseller arrangements), was as follows (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2025 2024 2025 2024 Americas: United States $ 912,638 $ 719,325 $ 2,558,614 $ 2,014,996 Other Americas (1) 32,166 26,269 92,397 72,781 EMEA (1)(2) 199,421 147,205 553,545 416,734 Asia-Pacific and Japan (1) 68,684 49,295 195,396 135,115 Total $ 1,212,909 $ 942,094 $ 3,399,952 $ 2,639,626 ________________ (1) No individual country in these areas represented more than 10% of the Companys revenue for all periods presented. (2) Includes Europe, the Middle East and Africa. Accounts Receivable, Net As of October 31, 2025 and January 31, 2025, allowance for credit losses of $3.7 million and $4.8 million, respectively, was included in the Companys accounts receivable, net balance. Significant Customers For purposes of assessing the concentration of credit risk and significant customers, a group of customers under common control or customers that are affi …

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Subsequent Events Business Combinations In November 2025, the Company completed acquisitions of two privately-held companies for an aggregate of approximately $44 million in cash or a combination of cash and unregistered shares of the Companys common stock, subject to customary purchase price adjustments. The Company has accounted for these transactions as business combinations and is currently evaluating the purchase price allocation for these transactions. Contractual Commitments In November 2025, the Company entered into certain contractual commitments with a third-party cloud infrastructure service provider and a third-party AI service provider, respectively, as discussed in Note 11, Commitments and Contingencies. …

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