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New words:
accrual, actor, affording, AI, algorithm, Alliance, amidst, amplified, appellate, attack, bad, batch, Bedi, biased, boundary, bounty, Brad, bug, Card, Carlo, category, Chinese, Christian, Christopher, compensatory, composition, concerted, Connecticut, construction, containerized, controversy, correct, Cortex, counsel, Czajkowski, deciding, deep, Degnan, detriment, disadvantage, disaggregation, disgorge, downstream, Electrotechnical, Erosion, escalate, EVP, failover, FedRAMP, fine, flawed, FTC, gas, geospatial, greenhouse, Grzegorz, hallucination, hearing, HITRUST, holiday, Iceberg, IEC, inappropriately, incomplete, inherit, joined, joining, Kleinerman, landscape, lawsuit, lightweight, LLM, magnitude, manufacturing, misleading, ML, moderate, Monte, native, Neeva, NLRB, Northern, NVIDIA, offensive, overseeing, penetration, predominantly, preview, profiling, prominence, questionnaire, Ramaswamy, recourse, regression, reissued, Reorganization, retaliation, retrain, room, rounding, Samooha, scrutiny, seller, simulation, slightly, Snowpipe, SOC, solve, Sridhar, straightforward, streaming, stronger, successor, Sunny, supranational, SVP, syntax, Tour, undue, unspecified, vector, viable, VP, yuan
Removed:
annum, attempted, Berkshire, Brexit, capitalizing, consummated, deducting, disease, element, equivalent, establishment, EUR, Euro, expertise, exploring, granting, Hathaway, introducing, LLC, marketability, Michael, nonrecourse, objective, October, onboarding, organizational, permissible, precedent, promissory, recognizing, redeemable, regulating, reimbursement, repaid, resurgence, Salesforce, Scarpelli, secured, standpoint, statistical, Subtopic, transforming, unaffiliated, virtually
Financial report summary
?Risks
- We have experienced rapid revenue growth and have a limited operating history, both of which make it difficult to forecast our future results of operations.
- We may not have visibility into our future financial position and results of operations.
- We have a history of operating losses and may not achieve or sustain profitability in the future.
- The markets in which we operate are highly competitive, and if we do not compete effectively, our business, financial condition, and results of operations could be harmed.
- If we fail to innovate in response to changing customer needs, new technologies, or other market requirements, our business, financial condition, and results of operations could be harmed.
- If we are not successful in executing our investments in artificial intelligence and machine learning technology, including generative AI Technology, our business, financial condition, and results of operations could be harmed.
- If we or our third-party service providers experience an actual or perceived security breach or unauthorized parties otherwise obtain access to our customers’ data, our data, or our platform, our platform may be perceived as not being secure, our reputation may be harmed, demand for our platform may be reduced, and we may incur significant liabilities.
- We could suffer disruptions, outages, defects, and other performance and quality problems with our platform or with the public cloud and internet infrastructure on which it relies.
- We expect fluctuations in our financial results, making it difficult to project future results, and if we fail to meet the expectations of securities analysts or investors with respect to our results of operations, our stock price could decline.
- Failure to effectively develop and expand our sales and marketing capabilities could harm our ability to increase our customer base and achieve broader market acceptance of our products and platform.
- Sales efforts to large customers involve risks that may not be present or that are present to a lesser extent with respect to sales to smaller organizations.
- Unfavorable conditions in our industry or the global economy, or reductions in cloud spending, could limit our ability to grow our business and negatively affect our results of operations.
- Our growth depends on the development, expansion, and success of our partner relationships.
- If we are unable to successfully manage the growth of our professional services business and improve our profit margin from these services, our operating results will be harmed.
- If we lose key members of our management team or are unable to attract and retain the executives and employees we need to support our operations and growth, our business and future growth prospects may be harmed.
- If the availability of our platform does not meet our service-level commitments to our customers, our current and future revenue may be negatively impacted.
- We assume liability for data breaches, intellectual property infringement, and other claims, which exposes us to substantial potential liability.
- Acquisitions, strategic investments, partnerships, or alliances could be difficult to identify, pose integration challenges, divert the attention of management, disrupt our business, dilute stockholder value, and adversely affect our business, financial condition, and results of operations.
- Seasonality may cause fluctuations in our remaining performance obligations or in customer consumption.
- We do business with federal, state, local, and foreign governments and agencies, and heavily regulated organizations; as a result, we face risks related to the procurement process, budget, delays, and product decisions driven by statutory and regulatory determinations, termination of contracts, and compliance with government contracting requirements.
- Any litigation against us could be costly and time-consuming to defend.
- Natural disasters, pandemics, and other catastrophic events could have an adverse impact on our business, operations, and the markets and communities in which we, our partners, and our customers operate.
- Our current operations are international in scope, and we plan further geographic expansion, creating a variety of operational challenges.
- As we prepare to offer our platform to Chinese affiliates of certain multi-national customers, risks associated with economic, political, and social events in China could negatively affect our business, financial condition, results of operations and growth prospects.
- We may require additional capital to support the growth of our business, and this capital might not be available on acceptable terms, if at all.
- We are exposed to fluctuations in currency exchange rates, which could negatively affect our results of operations and our ability to invest and hold our cash.
- If our estimates or judgments relating to our critical accounting estimates prove to be incorrect, our results of operations could be adversely affected.
- Our intellectual property rights may not protect our business or provide us with a competitive advantage.
- We may become subject to intellectual property disputes, which are costly and may subject us to significant liability and increased costs of doing business.
- If we use open-source software inconsistent with our policies and procedures or the license terms applicable to such software, we could be subject to legal expenses, damages, or costly remediation or disruption to our business.
- We are subject to stringent and changing obligations related to data, including data privacy and security, and the failure or perceived failure to comply with these obligations could result in significant fines and liability or otherwise result in substantial harm to our business and prospects.
- Issues in the development and use of AI Technology, combined with an uncertain regulatory environment, may result in reputational harm, liability, or other adverse consequences to our business operations.
- We are subject to anti-corruption, anti-bribery, anti-money laundering, and similar laws, and non-compliance with such laws can subject us to criminal or civil liability and harm our business, financial condition, and results of operations.
- We are subject to governmental export and import controls that could impair our ability to compete in international markets or subject us to liability if we violate the controls.
- Our international operations may subject us to greater than anticipated tax liabilities.
- Changes in tax laws or tax rulings could materially affect our financial position, results of operations, and cash flows.
- Our ability to use our net operating loss carryforwards may be limited.
- Changes in our effective tax rate or tax liability may have an adverse effect on our results of operations.
- Our stock price may be volatile, and the value of our common stock may decline.
- Future sales of our common stock in the public market could cause the market price of our common stock to decline.
- Our issuance of additional capital stock in connection with financings, acquisitions, investments, our equity incentive plans, or otherwise will dilute all other stockholders.
- We may not realize the anticipated long-term stockholder value of our stock repurchase program, and any failure to repurchase our common stock after we have announced our intention to do so may negatively impact our stock price.
- If securities or industry analysts publish unfavorable or inaccurate research about our business, the market price or trading volume of our common stock could decline.
- We do not intend to pay dividends for the foreseeable future and, as a result, the ability of the holders of our common stock to achieve a return on their investment will depend on appreciation in the price of our common stock.
- We incur significant costs operating as a public company, and our management is required to devote substantial time to compliance with our public company responsibilities and corporate governance practices.
- As a result of being a public company, we are obligated to develop and maintain proper and effective internal control over financial reporting, and any failure to maintain the adequacy of these internal controls may adversely affect investor confidence in our company and, as a result, the value of our common stock.
- Anti-takeover provisions in our charter documents and under Delaware law could make an acquisition of our company more difficult, limit attempts by our stockholders to replace or remove our current management, and limit the market price of our common stock.
- Our amended and restated certificate of incorporation designates the Court of Chancery of the State of Delaware and, to the extent enforceable, the federal district courts of the United States of America as the exclusive forums for certain disputes between us and our stockholders, which will restrict our stockholders’ ability to choose the judicial forum for disputes with us or our directors, officers, or employees.
Management Discussion
- Product revenue increased $728.1 million for the fiscal year ended January 31, 2024, compared to the prior fiscal year, primarily due to increased consumption of our platform by existing customers, as evidenced by our net revenue retention rate of 131% as of January 31, 2024. The increase in product revenue was also driven by an increase in capacity consumption prices of approximately 3% for the fiscal year ended January 31, 2024, compared to the prior fiscal year, primarily due to increased consumption of higher-priced editions of our platform and better discipline over discounting.
- We had 461 customers with product revenue of greater than $1 million for the trailing 12 months ended January 31, 2024, an increase from 331 customers as of January 31, 2023. Such customers represented approximately 65% and 63% of our product revenue for the trailing 12 months ended January 31, 2024 and 2023, respectively. Within these customers, we had 83 and 26 customers with product revenue of greater than $5 million and $10 million, respectively, for the trailing 12 months ended January 31, 2024. The substantial majority of our revenue was derived from existing customers under capacity arrangements, which represented approximately 97% and 96% of our revenue for the fiscal years ended January 31, 2024 and 2023, respectively. The remainder was derived from new customers under capacity arrangements and on-demand arrangements. The preceding historical metrics reflect any adjustments for acquisitions, consolidations, spin-offs, and other market activity. For purposes of determining revenue derived from (i) customers with trailing 12-month product revenue greater than $1 million, (ii) new customers, and (iii) existing customers, we treat each customer account, including accounts for end-customers under a reseller arrangement, that has at least one corresponding capacity contract as a unique customer, and a single organization with multiple divisions, segments, or subsidiaries may be counted as multiple customers.
- Professional services and other revenue increased $12.8 million for the fiscal year ended January 31, 2024, compared to the prior fiscal year, as we continued to expand our professional services organization to help our customers further realize the benefits of our platform.