Balance Sheet Components | Balance Sheet Components Cash and Cash Equivalents and Restricted cash Cash and cash equivalents include interest-bearing bank deposits, money market funds and other highly liquid investments with maturities of 90 days or less at the date of purchase. The Company had restricted cash balances of $6.0 million and $6.1 million as of April 30, 2022 and January 31, 2022, respectively. The restricted cash balances as of both April 30, 2022 and January 31, 2022 primarily consisted of $4.2 million of collateral money market accounts for the Company’s headquarters and other domestic office operating leases and $1.6 million of performance guarantees required for the Company’s foreign sales activities. A reconciliation of the Company’s cash and cash equivalents in the condensed consolidated balance sheets to total cash, cash equivalents and restricted cash in the condensed consolidated statements of cash flows as of April 30, 2022 and January 31, 2022 is as follows: (in thousands) April 30, 2022 January 31, 2022 Cash and cash equivalents $ 484,489 $ 490,762 Restricted cash, current 389 309 Restricted cash, non-current 5,653 5,743 Total cash, cash equivalents and restricted cash $ 490,531 $ 496,814 Restricted cash o f $0.4 million and $0.3 million is included in prepaid expenses and other current assets as of April 30, 2022 and January 31, 2022, respectively. Property and Equipment, Net Property and equipment, net consists of the following: (in thousands) April 30, 2022 January 31, 2022 Satellites* $ 311,374 $ 310,861 Leasehold improvements 15,448 15,448 Ground stations and ground station equipment 12,697 12,685 Office furniture, equipment and fixtures 5,381 5,335 Computer equipment and purchased software 8,176 8,197 Total property and equipment, gross 353,076 352,526 Less: Accumulated depreciation (227,747) (219,246) Total property and equipment, net $ 125,329 $ 133,280 * Satellites include $6.7 million and $13.7 million of satellites in process and not placed into service as of April 30, 2022 and January 31, 2022, respectively. Interest expense associated with manufactured satellites was not material for the three months ended April 30, 2022 and 2021. The Company’s long-lived assets by geographic region are as follows: (in thousands) April 30, 2022 January 31, 2022 United States $ 122,428 $ 130,230 Rest of World 2,901 3,050 Total property and equipment, net $ 125,329 $ 133,280 The Company concluded that satellites in service continue to be owned by the U.S. entity and accordingly are classified as U.S. assets in the table above. No single country other than the U.S. accounted for more than 10% of total property and equipment, net, as of April 30, 2022 and January 31, 2022. Total depreciation expense for the three months ended April 30, 2022 and 2021 was $10.4 million and $9.5 million, respectively, of which $8.9 million and $8.2 million, respectively, was depreciation expense specific to satellites. Capitalized Internal-Use Software Development Costs Capitalized internal-use software costs, net of accumulated amortization consists of the following: (in thousands) April 30, 2022 January 31, 2022 Capitalized internal-use software $ 37,322 $ 36,453 Less: Accumulated amortization (26,217) (25,685) Capitalized internal-use software, net $ 11,105 $ 10,768 Interest expense associated with capitalized internal-use software costs was not material for the three months ended April 30, 2022 and 2021. Amortization expense for capitalized internal-use software for the three months ended April 30, 2022 and 2021 was $0.5 million and $1.6 million, respectively. Goodwill and Intangible Assets Goodwill and Intangible assets consist of the following: April 30, 2022 January 31, 2022 (in thousands) Gross Accumulated Foreign Net Gross Accumulated Foreign Net Developed technology $ 16,557 $ (7,948) $ (9) $ 8,600 $ 16,557 $ (7,583) $ (9) $ 8,965 Image library 12,145 (10,674) 123 1,594 12,028 (10,610) 104 1,522 Customer relationships 3,951 (2,313) 7 1,645 3,951 (2,161) 8 1,798 Trade names and other 4,551 (2,825) 39 1,765 4,551 (2,678) 39 1,912 Total intangible assets $ 37,204 $ (23,760) $ 160 $ 13,604 $ 37,087 $ (23,032) $ 142 $ 14,197 Goodwill $ 101,413 $ — $ 1,806 $ 103,219 $ 101,413 $ — $ 1,806 $ 103,219 Amortization expense for the three months ended April 30, 2022 and 2021 was $0.7 million and $0.4 million, respectively. Estimated future amortization expense of intangible assets at April 30, 2022, is as follows: (in thousands) Remainder of Fiscal Year 2023 $ 2,138 2024 2,851 2025 1,936 2026 1,441 2027 1,108 Thereafter 4,130 $ 13,604 Accrued and Other Current Liabilities Accrued liabilities and other current liabilities consist of the following: (in thousands) April 30, 2022 January 31, 2022 Deferred R&D service liability (1) $ 21,115 $ 21,878 Payroll and related expenses 4,578 6,007 Deferred hosting costs 4,148 3,967 Deferred rent — 2,193 Withholding taxes and other taxes payable 4,044 3,731 Other accruals 9,299 11,047 Total accrued and other current liabilities $ 43,184 $ 48,823 (1) In December 2020, the Company entered into a development services agreement, whereby the Company agreed to provide the technical knowledge and services to design and develop certain prototype satellites and deliver and test early data collected (the “ R&D Services Agreement ”). The R&D Services Agreement is unrelated to the Company’s ordinary business activities and originally provided for a fee of $40.2 million, to be paid to the Company as specified milestones are achieved over a three year period. In November 2021, the R&D Services Agreement was amended to increase the fee to $45.2 million. The Company has discretion in managing the activities under the R&D Services Agreement and retains all developed intellectual property. The Company has no obligation to repay any of the funds received regardless of the outcome of the development work; therefore, the arrangement is accounted for as funded research and development pursuant to ASC 730-20, Research and Development . As ASC 730-20 does not indicate the accounting model for research and development services, the Company determined the total transaction price is taken over the agreement term as a reduction of research and development expenses based on a cost incurred method. During the three months ended April 30, 2022, the Company recognized $2.8 million of fees and incurred $2.8 million of research and development expenses in connection with the R&D Services Agreement. The activity for the three months ended April 30, 2021 was immaterial. As of April 30, 2022 and January 31, 2022 , the Company had received a total of $28.7 million and $26.7 million, respectively, under the R&D Services Agreement. |