Content analysis
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H.S. sophomore Good
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New words:
abandoned, Addendum, Advisory, air, alert, ALIVE, anniversary, apprised, arbitration, armed, aspire, belonging, bound, Carlo, chance, chatbot, Chile, Cisco, CISO, citing, comment, composed, composition, consumption, controversial, controversy, Council, CPPA, CTO, cultivate, deceptive, decommissioned, deficient, denial, destroy, disaggregated, dramatically, enrichment, ethical, Everbridge, exceeded, extinguished, extinguishment, facility, fake, foot, founder, FTC, gap, gift, globe, harder, Hat, healing, incompatible, inventory, irrevocably, Israel, Jeli, leaked, led, midsize, misleading, misrepresentative, ML, Monte, monumental, motion, multifactor, nurture, orient, overseeing, peer, planet, precision, prioritizing, PRISM, profile, profiling, profound, proud, Red, reimagining, reinstate, relocate, rent, replay, retrain, Road, rooted, routing, rulemaking, salary, Santiago, SBTi, science, segregation, sensor, simulation, society, speed, sterling, systematic, tailored, tarnish, telecommunication, tenure, transparency, undertaken, unified, unintended, unlock, unremediated, upcoming, velocity, vendor, vertical, violence, worsen, Youth
Removed:
accelerate, accountability, activate, allocate, altogether, ASC, avoid, Brazil, cancel, canceled, ceased, compromise, constrain, correctly, curtailed, cyber, deletion, demonstration, disruption, DNS, earn, element, enacting, energy, erode, escrow, ESG, exacerbate, favorably, formalize, founded, fundamentally, goal, granting, hijacking, inadvertent, initially, initiated, insight, intervention, involving, IPO, justice, knowledge, landing, legacy, lengthened, LGPD, licensing, mechanism, medium, mega, moment, noncurrent, Ops, OpsGenie, originating, peaceful, phone, positioned, postpone, predicted, propose, relied, remained, remotely, residency, responsive, resume, retired, rollforward, sharing, shifted, shipment, simplification, storage, succession, suite, Summit, superseded, supervisory, supporting, suppression, systemic, track, transformation, transmission, transportation, unnecessary, unspecified, violate, virtual, voter, warfare, wholly
Financial report summary
?Risks
- Unfavorable conditions in our industry or the global economy, or reductions in information technology spending, could limit our ability to grow our business and negatively affect our results of operations.
- We have a history of operating losses and may not achieve or sustain profitability in the future.
- Our recent rapid growth may not be indicative of our future growth, and if we continue to grow rapidly, we may not be able to manage our growth effectively. Our rapid growth also makes it difficult to evaluate our future prospects and may increase the risk that we will not be successful.
- We operate in an emerging and evolving market, which may develop more slowly or differently than we expect. If our market does not grow as we expect, or if we cannot expand our platform to meet the demands of this market, our revenue may fail to grow or even decline, and we may incur additional operating losses.
- If we are unable to attract new customers, our revenue growth will be adversely affected.
- Our previous and any future restructuring efforts may not result in the anticipated savings or operational efficiencies we expected, could result in greater total costs and expenses than we estimated, and could disrupt our business.
- If we are unable to retain our current customers or sell additional functionality and services to them, our revenue growth will be adversely affected.
- We derive a significant majority of our revenue from a single product.
- The markets in which we participate are competitive, and if we do not compete effectively, our operating results could be harmed.
- The nature of our business exposes us to inherent liability risks.
- 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 operating results, our stock price and the value of your investment could decline.
- Because we recognize revenue from the vast majority of our subscriptions over the term of the relevant agreement, downturns or upturns in sales are not immediately reflected in full in our operating results.
- Seasonality may cause fluctuations in our sales and operating results.
- If we fail to adapt and respond effectively to rapidly changing technology, evolving industry standards, changing regulations, and changing customer needs, requirements, or preferences, our products may become less competitive.
- If we fail to maintain and enhance our brand, our ability to expand our customer base will be impaired and our business, results of operations, and financial condition may suffer.
- Failure to effectively develop and expand our marketing and sales capabilities could harm our ability to increase our customer base and achieve broader market acceptance of our products.
- If we are unable to enhance and improve our platform or develop new functionality or use cases, our revenue may not grow.
- If our products fail to perform properly due to defects or similar problems, and if we fail to develop enhancements to resolve any defect or other problems, we could lose customers, become subject to service performance or warranty claims, or incur other significant costs.
- As we continue to pursue sales to new and existing enterprise customers, our sales cycle, forecasting processes, and deployment processes may become more unpredictable and require greater time and expense.
- Issues relating to the responsible use of our technologies, including AI in our offerings, may result in reputational and/or financial harm and liability.
- If we cannot maintain our company culture as we grow, our success and our business may be harmed.
- If we lose key members of our management team or are unable to attract and retain executives and employees we need to support our operations and growth, our business may be harmed.
- The failure to attract and retain additional qualified personnel and any restrictions on the movement of personnel could prevent us from executing our business strategy and growth plans.
- The estimates of market opportunity and forecasts of market growth may prove to be inaccurate, and even if the market in which we compete achieves the forecasted growth, our business could fail to grow at similar rates, if at all.
- Cyber-attacks, security incidents, and other threats, have occurred and may continue to occur that could allow unauthorized access to our systems or data or our customers’ systems or data, and could cause us to experience adverse consequences, including, but not limited to, significant costs, litigation and regulatory investigations and actions, and harm to our business and reputation.
- We rely upon free trials of our products and other inbound lead-generation strategies to drive our sales and revenue. If these strategies fail to continue to generate sales opportunities or trial users do not convert into paying customers, our business and results of operations would be harmed.
- Interruptions or delays in performance of our service could result in customer dissatisfaction, damage to our reputation, loss of customers, limited growth, and reduction in revenue.
- If we do not or cannot maintain the compatibility of our platform with third-party applications that our customers use in their businesses, our revenue and growth prospects will decline.
- The success of our business depends on our customers’ continued and unimpeded internet access.
- We provide service-level commitments under our cloud-hosted subscription agreements. If we fail to meet these contractual commitments, we could be obligated to provide credits for future service or face subscription termination with refunds of prepaid amounts, which would lower our revenue and harm our business, results of operations, and financial condition.
- If we fail to offer high-quality support, our business and reputation could suffer.
- We may not be able to scale our business quickly enough to meet our customers’ growing needs, and if we are not able to grow efficiently, our operating results could be harmed.
- Our current operations are international in scope, and we plan further geographic expansion, creating a variety of operational challenges.
- Our international operations may subject us to potential adverse tax consequences.
- We are exposed to fluctuations in currency exchange rates, which could negatively affect our operating results.
- Our ability to use our net operating losses to offset future taxable income may be subject to certain limitations.
- Changes in tax laws or regulations that are applied adversely to us or our customers may have a material adverse effect on our business, cash flow, financial condition, or results of operations.
- Our reported financial results may be adversely affected by changes in accounting principles generally accepted in the United States.
- If our estimates or judgments relating to our critical accounting policies prove to be incorrect, our results of operations could be adversely affected.
- We may not be able to successfully manage the growth of our business if we are unable to improve our internal systems, processes, and controls.
- Certain members of our management team have limited experience managing a public company.
- We could incur substantial costs in protecting or defending our proprietary rights, and any failure to adequately protect such rights could impair our competitive position and result in the loss of valuable intellectual property rights, reduced revenue and costly litigation.
- Any future litigation against us could be costly and time-consuming to defend.
- We have in the past, and may in the future be, subject to intellectual property disputes, which are costly and may subject us to significant liability and increased costs of doing business.
- We use open-source software in our products, which could subject us to litigation or other actions.
- Indemnity provisions in various agreements potentially expose us to substantial liability for intellectual property infringement, data, and other losses.
- 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.
- We are subject to stringent and evolving U.S. and foreign laws, regulations, rules, contractual obligations, policies and other obligations related to data privacy and security. Our actual or perceived failure to comply with such obligations could lead to regulatory investigations or actions; litigation (including class claims) and mass arbitration demands; fines and penalties; disruptions of our business operations; reputational harm; loss of revenue or profits; and other adverse business consequences.
- Failure to comply with governmental laws and regulations could harm our business.
- Increased government scrutiny of the technology industry could negatively affect our business.
- Our sales to government entities and highly regulated organizations are subject to a number of challenges and risks.
- We are subject to government regulation, including export, import and economic sanctions laws and regulations, that may impair our ability to compete in international markets or subject us to liability if we fail to comply.
- Servicing our debt may require a significant amount of cash. We may not have sufficient cash flow from our business to pay our indebtedness, and we may not have the ability to raise the funds necessary to settle for cash conversions of our convertible senior notes due 2025 (the “2025 Notes”) or our convertible senior notes due 2028 (the “2028 Notes” and together with the 2025 Notes, the “Notes”), or to repurchase the Notes for cash upon a fundamental change, which could adversely affect our business and results of operations.
- The conditional conversion feature of the Notes, if triggered, may adversely affect our financial condition and results of operations.
- Transactions relating to our Notes may affect the value of our common stock.
- We are subject to counterparty risk with respect to the Capped Calls.
- We have acquired, and may in the future acquire, other businesses, which could require significant management attention, disrupt our business, or dilute stockholder value.
- 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.
- If securities or industry analysts do not publish research or publish unfavorable or inaccurate research about our business, our stock price and trading volume could decline.
- We do not intend to pay dividends for the foreseeable future and, as a result, your ability to achieve a return on your investment will depend on appreciation in the price of our common stock.
- 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.
- Concentration of ownership of our common stock among our existing executive officers, directors, and principal stockholders may prevent new investors from influencing significant corporate decisions.
- The requirements of being a public company may strain our resources and distract our management, which could make it difficult to manage our business, especially now that we are no longer an “emerging growth company.”
- If our internal control over financial reporting or our disclosure controls and procedures are not effective, we may not be able to accurately report our financial results, prevent fraud or file our periodic reports in a timely manner, which may cause investors to lose confidence in our reported financial information and may lead to a decline in our stock price.
- We are obligated to develop and maintain proper and effective internal controls 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 substantially all disputes between us and our stockholders, which restricts our stockholders’ ability to choose the judicial forum for disputes with us or our directors, officers, or employees.
Management Discussion
- Revenue increased by $59.9 million, or 16%, for the fiscal year ended January 31, 2024 compared to the fiscal year ended January 31, 2023. The increase in revenue was attributable to a combination of growth from both new and existing customers. Growth from existing customers was attributable to increases in the number of users and upsell of additional products and services.
- Cost of revenue increased by $7.4 million, or 11%, primarily due to an increase of $1.8 million in amortization of internally developed software, an increase of $1.7 million in higher hosting, software, and telecom costs, an increase of $1.5 million in personnel expenses as a result of increased headcount and salaries, an increase of $1.2 million in amortization of acquired intangible assets related to acquisitions, and an increase of $1.0 million in other expenses, primarily related to outside services.
- Research and development expenses increased by $4.9 million, or 4%, for the fiscal year ended January 31, 2024 compared to the fiscal year ended January 31, 2023 and decreased as a percentage of revenue. The increase in research and development expense was primarily driven by an increase in personnel expenses of $5.4 million as a result of increased headcount and salaries to support our continued investment in our platform, an increase of $1.7 million in costs to support the continued growth of the business and related infrastructure, which included allocated overhead costs, and an increase of $0.6 million in travel related costs as a result of increased travel. This was partially offset by a decrease of $3.1 million in outside services spend due to higher leverage of internal resources through hiring.