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New words:
Abdullah, ADRT, advisor, affirmative, AI, Alissa, APJ, arbitration, Arntz, ARR, Brent, broker, carte, CISO, construction, Contractor, copy, death, demonstrate, deputy, disable, disaggregated, dissolution, earlier, East, edge, embraced, EMEA, Erosion, exact, Frei, gas, Godbole, greenhouse, half, herewith, IC, inaugural, Instagram, ISO, ISSC, la, master, Mastercard, Michael, Middle, misconfiguration, nonpublic, offensive, overseen, page, Pete, planet, Platinum, probabilistic, procedural, procedure, protocol, pursuit, quantity, resignation, revolutionize, role, routinely, SIEM, speak, StatementsReport, Steering, streamlined, substantive, subtracting, text, TikTok, tolerance, TPRM, Ukraine, vacated
Removed:
abroad, accessibility, accessing, advisory, Asia, billing, CCPA, cisco, Committing, decide, deliverability, deterioration, diminish, escrow, Europe, filter, funded, gmail, gradually, illustrative, imposed, imputed, interfere, ISP, lived, migration, month, necessitate, neutrality, October, opened, origin, pipeline, Planview, popularity, pulse, refine, relation, transacted, unaudited, Western, yahoo
Financial report summary
?Risks
- Security threats and attacks are common, increasing globally, and they may result in significant liabilities.
- Our failure to sufficiently secure our products and services may result in unauthorized access to customer data, a negative impact on our customer attraction and retention, and significant liabilities.
- We depend on public cloud service providers and computing infrastructure operated by third parties, and any service outages, delays, or disruptions in these operations could harm our business and operating results.
- If our platform fails to perform properly, or if we are unable to architect our platform to deliver on customer demand for scale, performance, and sophisticated use cases, then our reputation could be harmed, we could be subject to liability, and our market share could decline.
- If we fail to manage our services infrastructure at the levels expected by our customers, including due to factors such as service outages, interruptions, or delays in updates to our platform to meet customers' needs, then we may be subject to liabilities and our operating results may be harmed.
- Failure to establish and maintain relationships with partners that can provide complementary technology offerings and software integrations could limit our ability to grow our business.
- Our platform and internal business operations use third-party software and services that may be difficult to replace or may cause errors or failures that could lead to a loss of customers or harm to our reputation and our operating results.
- The use of artificial intelligence in our products and services could adversely affect our business and operating results.
- Our use of open source software could negatively affect our ability to offer and sell our products and subject us to possible litigation.
- The market in which we participate is highly competitive, and if we do not compete effectively, our operating results could be harmed.
- If we do not keep pace with technological changes, our platform may become less competitive and our business may suffer.
- Our business depends on a strong brand, and if we are not able to develop, maintain, and enhance our brand, our business and operating results may be harmed.
- Our forecasts of market growth may prove to be inaccurate, and even if the markets in which we compete achieve the forecasted growth, we cannot assure you that our business will grow at similar rates, if at all.
- It is difficult to predict our future operating results.
- We have a history of cumulative losses and we cannot assure you that we will achieve and sustain profitability in the foreseeable future.
- If we are unable to attract new customers and maintain and expand sales to existing customers, our growth could be slower than we expect and our business may be harmed.
- Our quarterly operating results may fluctuate significantly and may not fully reflect the underlying performance of our business.
- We derive substantially all of our revenue from a single offering.
- Because we recognize revenue from subscriptions and support services over the term of the relevant service period, downturns or upturns in new sales or renewals may not be immediately reflected in our operating results and may be difficult to discern.
- We may need additional capital, and we cannot be certain that additional financing will be available on favorable terms, or at all.
- We may face exposure to foreign currency exchange rate fluctuations.
- Our sales are generally more heavily weighted toward the end of each fiscal quarter and towards the end of our fiscal year, which could have an impact on the timing of our billings, revenue, collections, and the reporting of these metrics for any given quarter, for subsequent quarters, or for a subsequent fiscal year.
- We have recently experienced rapid growth and expect our growth to continue. If we fail to manage our growth effectively, we may be unable to execute our business plan, maintain high levels of service and operational controls, or adequately address competitive challenges.
- As a substantial portion of our sales efforts are targeted at enterprise and government customers, our sales cycles may become more complex, we may encounter implementation and configuration challenges, and we may have to delay revenue recognition for more complicated transactions, all of which could harm our business and operating results.
- Our growth depends on the expansion and effectiveness of our sales force, domestically and internationally.
- Our failure to attract, integrate, and retain highly qualified personnel could harm our business.
- If we cannot maintain our corporate culture as we grow and work in a hybrid working environment, we could lose the innovation, teamwork, and passion that we believe contribute to our success, and our business may be harmed.
- We may not receive significant revenue from our current development efforts for several years, if at all.
- We may experience difficulties in accurately predicting optimal pricing necessary to attract new customers and retain existing customers.
- The loss of one or more of our key customers, or a failure to renew our subscription agreements with one or more of our key customers, could negatively affect our ability to market our platform.
- If we fail to offer high-quality customer support, our business and reputation may be harmed.
- Our long-term growth depends in part on being able to expand internationally on a profitable basis.
- Any failure to protect our intellectual property rights could impair our ability to protect our proprietary technology and our brand.
- We may be sued by third parties for alleged infringement of their proprietary rights.
- The requirements of being a public company, including maintaining adequate internal control over our financial and management systems, may strain our resources and divert management’s attention.
- We intend to evaluate acquisitions or investments in third-party technologies and businesses, but we may not realize the anticipated benefits from, and may have to pay substantial costs related to, any acquisitions, mergers, joint ventures, or investments that we undertake.
- The market price of our Class A common stock has been, and will likely continue to be, volatile, and you could lose all or part of your investment.
- Sales of a substantial amount of our Class A common stock in the public markets, particularly sales by our directors, executive officers, and significant shareholders, or the perception that these sales may occur, may cause the market price of our Class A common stock to decline.
- If securities or industry analysts do not publish research about our company, or publish inaccurate or unfavorable research, then the price and trading volume of our Class A common stock could decline.
- Provisions in our corporate charter documents and under Washington law could make an acquisition of our company, which may be beneficial to our shareholders, more difficult and may prevent attempts by our shareholders to replace or remove our current management.
- Our amended and restated articles of incorporation designate the federal and state courts located within the State of Washington as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our shareholders, which could limit our shareholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers, employees, or agents.
- Actual or perceived failure to comply with laws, regulations, and commitments affecting our business, including those related to privacy, data protection, marketing, advertising, and information security could harm our business.
- We could be subject to additional sales tax or other tax liabilities.
- Our ability to use our net operating loss to offset future taxable income may be subject to certain limitations.
- Changes in tax laws or regulations could be enacted or existing tax laws or regulations could be applied to us or our customers in a manner that could increase the costs of our platform and services and harm our business.
- Failure to comply with Federal Acquisition Regulation clauses or anti-corruption and anti-money laundering laws, including the FCPA and similar laws associated with our activities outside of the U.S., could subject us to penalties and other adverse consequences.
- Governmental export or import controls could limit our ability to compete in foreign markets and subject us to liability if we violate them.
- The loss of one or more of our key personnel could harm our business.
- Contractual disputes or commitments, including indemnity obligations, may be costly, time-consuming, may result in contract or relationship terminations, and could harm our reputation.
- We may be subject to litigation or regulatory proceedings for a variety of claims, which could adversely affect our operating results, harm our reputation, or otherwise negatively impact our business.
- If our estimates or judgments relating to our critical accounting policies prove to be incorrect, our operating results could be adversely affected.
- Adverse economic and market conditions and reductions in productivity spending may harm our business.
- Political developments, including wars and conflicts, and their associated effects may harm our business.
- Expectations of our performance relating to environmental, social, and governance factors may impose additional costs and expose us to new risks.
- Catastrophic events may disrupt our business.
Management Discussion
- Subscription revenue increased $190.3 million, or 27%, for the year ended January 31, 2024 compared to the year ended January 31, 2023. Sales of user-based subscription plans and capabilities-based products contributed $100.9 million and $89.4 million, respectively, to the increase in revenue between periods.
- Professional services revenue increased $1.1 million, or 2%, for the year ended January 31, 2024 compared to the year ended January 31, 2023. The increase in professional services revenue was primarily driven by an increase in demand for our consulting and training services.
- Cost of subscription revenue increased $20.3 million, or 18%, for the year ended January 31, 2024 compared to the year ended January 31, 2023. This was primarily driven by increases of $7.5 million in employee-related expenses due to increased headcount, of which $1.8 million was related to share-based compensation expense, $7.0 million in hosting fees, $2.2 million in amortization of capitalized software, $1.8 million in software-related costs, $0.7 million in credit card processing fees, $0.6 million in costs of connectors with third-party applications, $0.6 million in cost of outside services used to supplement our internal staff, and $0.4 million in amortization of acquisition-related intangibles. This was partially offset by a decrease of $0.6 million in allocated overhead.