Financial Data and Key Metrics Changes - The company reported revenue of $143 million for Q2 2024, representing a year-over-year growth of 26% [10] - Current non-GAAP remaining performance obligations reached $420 million, reflecting a 30% year-over-year growth [10] - Non-GAAP operating loss is expected to be in the range of $26 million to $23 million for Q3 2024, with full fiscal year 2024 revenue guidance between $571 million and $575 million [16] Business Line Data and Key Metrics Changes - HashiCorp Cloud Platform offerings generated $18.4 million in revenue, accounting for 13% of subscription revenue in the quarter [10] - The company added 21 customers with annual recurring revenue of $100,000 or more, bringing the total to 851 [10] Market Data and Key Metrics Changes - The company noted that sales cycles remain elongated and procurement scrutiny is ongoing, which is expected to persist through the rest of 2024 [15] - Despite macroeconomic conditions, customer planning for cloud has not changed, indicating a continued demand for cloud solutions [12] Company Strategy and Development Direction - The company remains focused on achieving profitability while positioning itself for continued cloud adoption [37] - Recent product announcements include enhancements to Terraform, Vault, and Boundary, aimed at addressing the needs of organizations transitioning to the cloud [36][54] - The company is optimistic about long-term opportunities in the cloud market, despite current economic uncertainties [37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's role as a critical partner for Global 2000 companies in their cloud transitions [35] - The purchasing environment is challenging, but the company continues to win market share [35] - Management highlighted that the transition to cloud requires new approaches to managing infrastructure, which their products provide [12] Other Important Information - The company is integrating BluBracket, which is expected to contribute more significantly to revenue next year as it is fully integrated [24] - The second quarter is typically a seasonally low period for free cash flow and cash flow from operations, with expectations of normalization in Q3 and Q4 [39] Q&A Session Summary Question: How is the demand environment evolving? - Management indicated that the demand environment has remained consistent, with no material changes in cloud plans or competitive dynamics [20] Question: What impact do recent changes have on revenue guidance? - Management explained that the current RPO growth is strong, but the revenue guidance reflects a cautious spending environment [48][70] Question: How is Boundary performing in the market? - Management reported strong interest and positive feedback from customers regarding Boundary, with significant deals being landed [81] Question: What are the implications of the pricing changes for Terraform Cloud? - The pricing changes have led to a substantial increase in sign-up rates for Terraform Cloud, simplifying the onboarding process for new users [90] Question: How is the company addressing competitive pressures with the license change? - Management clarified that the license change aims to address product cloning issues while allowing for continued open innovation [95]

Part I. Financial Information [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents HashiCorp's unaudited condensed consolidated financial statements for the quarterly period ended July 31, 2023, including balance sheets, statements of operations, comprehensive loss, stockholders' equity, and cash flows, showing continued revenue growth alongside persistent net losses and significant cash usage in investing activities Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | July 31, 2023 | January 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$1,590,603** | **$1,628,340** | | Cash and cash equivalents | $830,018 | $1,286,134 | | Short-term investments | $414,094 | $0 | | **Total Liabilities** | **$405,691** | **$422,990** | | Deferred revenue (Current) | $264,639 | $272,909 | | **Total Stockholders' Equity** | **$1,184,912** | **$1,205,350** | Condensed Consolidated Statements of Operations Highlights (in thousands, except per share) | Metric | Three Months Ended July 31, 2023 | Three Months Ended July 31, 2022 | Six Months Ended July 31, 2023 | Six Months Ended July 31, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | **$143,246** | **$113,863** | **$281,229** | **$214,760** | | Gross Profit | $113,912 | $92,323 | $225,107 | $173,831 | | Loss from Operations | ($82,596) | ($78,619) | ($150,406) | ($157,061) | | **Net Loss** | **($66,315)** | **($74,764)** | **($119,573)** | **($152,981)** | | Net Loss Per Share | ($0.34) | ($0.40) | ($0.62) | ($0.83) | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six Months Ended July 31, 2023 | Six Months Ended July 31, 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | ($29,794) | ($70,869) | | Net cash used in investing activities | ($437,748) | ($3,588) | | Net cash provided by financing activities | $11,426 | $10,465 | | **Net decrease in cash** | **($456,116)** | **($63,992)** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the company's accounting policies and financial statement components, including the acquisition of BluBracket, disaggregation of revenue, details on remaining performance obligations (RPOs), stock-based compensation, and charges related to a recent workforce reduction - On June 2, 2023, the company acquired BluBracket, Inc., a code security solution startup, for an aggregate purchase price of **$25.1 million** in cash, resulting in **$12.3 million** of goodwill and **$13.5 million** in intangible assets (developed technology and customer relationships)[41](index=41&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk) - As of July 31, 2023, the company had **$682.5 million** in Remaining Performance Obligations (RPOs), an increase from **$647.1 million** as of January 31, 2023, with approximately **58%** of these RPOs expected to be recognized as revenue over the next 12 months[54](index=54&type=chunk) - On June 7, 2023, the company announced a workforce reduction impacting approximately **8%** of its workforce, resulting in **$7.2 million** of charges during the quarter, primarily for employee severance[92](index=92&type=chunk)[93](index=93&type=chunk) Stock-Based Compensation Expense (in thousands) | Period | Cost of Revenue | Sales and Marketing | Research and Development | General and Administrative | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | **3 Months Ended Jul 31, 2023** | $4,048 | $15,483 | $12,942 | $13,646 | **$46,119** | | **6 Months Ended Jul 31, 2023** | $7,479 | $27,442 | $24,673 | $26,688 | **$86,282** | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=33&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's performance, highlighting a **26%** year-over-year revenue increase for the quarter, driven by new customer acquisition and expansion within the existing customer base, covering key business metrics, operational results, liquidity, and cash flows, while continuing to invest in growth and managing costs - The company's business model is based on a combination of free, source-available community products and proprietary software with paid tiers, offered as both self-managed software and a fully-managed HashiCorp Cloud Platform (HCP)[112](index=112&type=chunk)[113](index=113&type=chunk) - The go-to-market strategy follows an "adopt, land, expand, and extend" motion, focusing on initial adoption through free products, landing enterprise contracts, expanding usage within accounts, and cross-selling additional products[119](index=119&type=chunk) Key Business Metrics | Metric | As of July 31, 2023 | As of January 31, 2023 | | :--- | :--- | :--- | | Total customers | 4,217 | 3,870 | | Total customers with ≥ $100,000 ARR | 851 | 798 | | GAAP RPOs | $682.5 million | $647.1 million | | Non-GAAP RPOs | $708.0 million | $673.8 million | - The last four-quarter average net dollar retention rate was **124%** as of July 31, 2023, compared to **134%** as of July 31, 2022, indicating strong but moderating expansion within the existing customer base[126](index=126&type=chunk) [Results of Operations](index=46&type=section&id=Results%20of%20Operations) This subsection provides a detailed comparative analysis of the company's operational results for the three and six months ended July 31, 2023, and 2022, showing total revenue growth of **26%** for the quarter and **31%** for the six-month period, primarily driven by subscription revenue increases, with operating expenses growing at a slower pace Revenue Comparison (in thousands) | Revenue Type | Three Months Ended Jul 31, 2023 | Three Months Ended Jul 31, 2022 | Change % | | :--- | :--- | :--- | :--- | | Subscription Revenue | $139,093 | $110,232 | 26% | | Professional Services & Other | $4,153 | $3,631 | 14% | | **Total Revenue** | **$143,246** | **$113,863** | **26%** | - The increase in subscription revenue for the quarter was attributed to **$11.9 million** from new customers and **$17.0 million** from expanded product adoption among existing customers[170](index=170&type=chunk) Operating Expenses Comparison (in thousands) | Expense Category | Three Months Ended Jul 31, 2023 | Three Months Ended Jul 31, 2022 | Change % | | :--- | :--- | :--- | :--- | | Sales and Marketing | $101,134 | $87,674 | 15% | | Research and Development | $59,962 | $47,885 | 25% | | General and Administrative | $35,412 | $35,383 | 0% | | **Total Operating Expenses** | **$196,508** | **$170,942** | **15%** | [Liquidity and Capital Resources](index=54&type=section&id=Liquidity%20and%20Capital%20Resources) As of July 31, 2023, HashiCorp held **$830.0 million** in cash and cash equivalents, with net cash used in operating activities improving to **$29.8 million** for the first six months of fiscal 2024, while a substantial **$437.7 million** was used in investing activities, primarily for short-term investments and the BluBracket acquisition, with management believing existing cash will fund operations for at least the next 12 months - The company had cash and cash equivalents of **$830.0 million** as of July 31, 2023, down from **$1.286 billion** at the start of the fiscal year, primarily due to the purchase of **$414.1 million** in short-term investments[8](index=8&type=chunk)[200](index=200&type=chunk) - Net cash used in operating activities improved to **$29.8 million** for the six months ended July 31, 2023, compared to **$70.9 million** in the prior-year period, reflecting better management of working capital despite a net loss[203](index=203&type=chunk)[205](index=205&type=chunk)[206](index=206&type=chunk) - Net cash used in investing activities was **$437.7 million**, mainly due to purchases of short-term investments (**$469.7 million**) and the BluBracket acquisition (**$20.9 million**), partially offset by proceeds from investment sales and maturities[18](index=18&type=chunk)[207](index=207&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=57&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines the company's exposure to market risks, primarily interest rate and foreign currency risk, stating no material changes since the last annual report and detailing a hedging program for foreign currency implemented in the second quarter of fiscal 2024 - Interest rate risk is considered low; a hypothetical **10%** change in interest rates is not expected to have a material impact on operating results[214](index=214&type=chunk) - Foreign currency risk exists as a portion of operating expenses are in foreign currencies, where a **10%** weakening of the U.S. dollar could increase operating expenses by approximately **2%**, leading the company to begin using foreign currency forward contracts in Q2 fiscal 2024 to hedge this exposure[216](index=216&type=chunk)[217](index=217&type=chunk) - Inflation is not believed to have had a material effect on the business, financial condition, or results of operations[218](index=218&type=chunk) [Controls and Procedures](index=57&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of July 31, 2023, with no material changes to the company's internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of July 31, 2023[222](index=222&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[223](index=223&type=chunk) Part II. Other Information [Legal Proceedings](index=59&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that while it may be involved in various legal proceedings in the ordinary course of business, it does not believe there was a reasonable possibility of incurring a material loss from such contingencies as of July 31, 2023 - As of July 31, 2023, the company believes there was not a reasonable possibility that it had incurred a material loss with respect to legal loss contingencies[79](index=79&type=chunk) [Risk Factors](index=60&type=section&id=Item%201A.%20Risk%20Factors) This section provides a comprehensive overview of the risks facing the company, including a history of net losses, challenges in managing rapid growth, intense competition, reliance on customer subscription renewals, potential security breaches, and risks associated with international operations and intellectual property strategy - The company has a history of net losses (**$66.3 million** for the quarter) and may not achieve or sustain profitability as it continues to invest in growth[236](index=236&type=chunk) - A key risk is competition from public cloud operators and others who can use the company's source-available licenses to build competing products with limited barriers to entry[245](index=245&type=chunk) - The business is highly dependent on customer renewals and expanding sales to existing customers, where a failure to maintain high renewal rates or expand deployments could harm future revenue[249](index=249&type=chunk)[250](index=250&type=chunk) - The company's dual-class stock structure concentrates voting power with pre-IPO stockholders, including founders and executives, limiting the influence of Class A stockholders[403](index=403&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=122&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - There were no unregistered sales of equity securities or use of proceeds to report for the quarter[422](index=422&type=chunk) [Other Information](index=122&type=section&id=Item%205.%20Other%20Information) This section discloses that several executive officers, including the CEO, CFO, CTO, CRO, and CMO, entered into Rule 10b5-1 trading plans during the quarter for the future sale of company stock - During the quarter, CEO David McJannet, CFO Navam Welihinda, CTO Armon Dadgar, CRO Brandon Sweeney, and CMO Marc Holmes each established a Rule 10b5-1 trading plan for selling shares of company stock[425](index=425&type=chunk)[426](index=426&type=chunk)[427](index=427&type=chunk) [Exhibits](index=123&type=section&id=Item%206.%20Exhibits) This item lists the exhibits filed with the Form 10-Q, including the CEO and CFO certifications required by the Sarbanes-Oxley Act and interactive data files (XBRL) - The exhibits include certifications from the Principal Executive Officer and Principal Financial Officer pursuant to Sarbanes-Oxley Act Sections 302 and 906[432](index=432&type=chunk)

HashiCorp, Inc. (NASDAQ:HCP) Q1 2024 Earnings Conference Call June 7, 2023 5:00 PM ET Company Participants Alex Kurtz - Vice President, Investor Relations and Corporate Development Dave McJannet - Chief Executive Officer Navam Welihinda - Chief Financial Officer Armon Dadgar - Co-Founder and Chief Technology Officer Conference Call Participants Sterling Auty - MoffettNathanson Derrick Wood - TD Cowen Michael Turits - KeyBanc Capital Markets Ittai Kidron - Oppenheimer James Fish - Piper Sandler Alex Zukin - ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ File Number: 001-41121 HashiCorp, Inc. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorporation o ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 31, 2023 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number: 001-41121 HashiCorp, Inc. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorpor ...

Financial Data and Key Metrics Changes - HashiCorp reported Q3 revenue of $125.3 million, reflecting a year-over-year growth of 52% and exceeding guidance [9][30] - The trailing four-quarter average net dollar retention rate was 134% [9][30] - Non-GAAP remaining performance obligations reached $553 million, representing a 50% year-over-year growth [10] - The company incurred a net loss of $0.38 per share on a GAAP basis and $0.13 per share on a non-GAAP basis [31][37] Business Line Data and Key Metrics Changes - HashiCorp Cloud Platform offerings generated $12.9 million in revenue, accounting for 10.7% of subscription revenue in the quarter [10] - The company added 26 customers with annual recurring revenue of $100,000 or more, bringing the total to 760 [10] Market Data and Key Metrics Changes - The company observed strong multiyear contract activity, indicating that existing customers are reaffirming their commitment as a critical vendor [32] - There was a noted elongation in sales cycles, particularly for new contracts from first-time customers due to increased scrutiny of spending [34][58] Company Strategy and Development Direction - HashiCorp is focusing on enhancing its product offerings, particularly in security and infrastructure automation, to address customer needs for cost control and efficiency [17][20] - The company is emphasizing a Zero Trust Security approach, with recent product announcements aimed at improving security posture [18][20] - The strategy includes a focus on centralized Platform Teams to facilitate the transition from tactical cloud adoption to strategic cloud programs [15] Management's Comments on Operating Environment and Future Outlook - Management noted that despite economic pressures, the transition to cloud infrastructure remains a key strategic investment for large organizations [13] - The company raised its full-year guidance, expecting Q4 revenue between $123 million and $125 million, and full-year revenue between $463 million and $465 million [36][37] - Management acknowledged macroeconomic uncertainties and their impact on sales cycles, particularly for new customer contracts [34][61] Other Important Information - The company was named AWS North America's Security Partner of the Year, highlighting its growing recognition in the security domain [19] - HashiCorp's approach to monetization is evolving, with a focus on balancing open-source and commercial offerings [102] Q&A Session Summary Question: Thoughts on fiscal '24 modeling points - Management indicated that they are pleased with Q3 performance and will provide guidance for fiscal '24 in Q1 next year [40][41] Question: Adoption of multiproduct offerings - Management noted that customers typically start with Terraform and Vault, with growing interest in newer products like Boundary [43][44] Question: Clarification on price lock-in and demand - Management explained that customers are seeking long-term commitments to lock in pricing amid inflationary pressures, but there was no pull-in of demand from Q4 to Q3 [48][49] Question: Technical differentiation for Boundary - Management highlighted that Boundary is designed for dynamic cloud environments, differentiating it from traditional solutions [51][52] Question: Pipeline assumptions for Q4 - Management noted that there is a higher win rate on expand and extend deals compared to new customer contracts, which are experiencing elongation [58][60] Question: Multiyear deal activity - Management confirmed that multiyear contracts were primarily from renewals rather than early conversions, reflecting strong customer relationships [78][79] Question: Margin improvement strategies - Management outlined that productivity from new hires and maintaining high gross margins will drive margin improvements [115][116]

Financial Highlights - Q2 FY23 revenue reached $1139 million, a 52% year-over-year growth compared to 49% in Q2 FY22[18, 32] - Total customers increased to 3,612, a 52% year-over-year growth from 2,101 in Q2 FY22[18, 32] - Customers with >=$100K ARR grew to 734, compared to 558 in Q2 FY22[18, 32] - Trailing Four Quarter Average Net Dollar Retention Rate increased to 134%, compared to 124% in Q2 FY22[18, 32] - Non-GAAP Total RPOs reached $4984 million, a 48% year-over-year growth from $3359 million in Q2 FY22[18, 32] Cloud Platform Adoption - HashiCorp Cloud Platform (HCP) revenue grew 183% year-over-year[23] - HCP revenue reached $106 million in Q2 FY23, compared to $37 million in Q2 FY22[32] Market Opportunity - Estimated Global Cloud TAM is projected to reach $607 billion by 2026, with a CAGR of 15% from 2021-2026[10] - Estimated HashiCorp TAM is projected to reach $73 billion by 2026, with a CAGR of 12% from 2021-2026[10] Guidance - Q3 FY23 revenue is expected to be between $110 million and $112 million[29, 58] - Full Year FY23 revenue is expected to be between $442 million and $448 million[29, 58]

HashiCorp, Inc. (NASDAQ:HCP) Q2 2023 Earnings Conference Call September 1, 2022 5:00 PM ET Company Participants Alex Kurtz - VP, IR Dave McJannet - CEO Navam Welihinda - CFO Armon Dadgar - Co-Founder & Chief Technology Officer Conference Call Participants Ittai Kidron - Oppenheimer & Co. Sanjit Singh - Morgan Stanley Alex Zukin - Wolfe Research Jason Ader - William Blair Mark Murphy - JPMorgan Fatima Boolani - Citigroup James Fish - Piper Sandler Derrick Wood - Cowen and Company Brad Sills - Bank of Ame ...

Q4 FY2022 Copyright © 2022 HashiCorp 1 This presentation regarding HashiCorp, Inc., referred to as "HashiCorp," the "company," "we," "us" or "our," or in similar terms contains forward-looking statements about us and our industry that involve substantial risks and uncertainties, some of which cannot be predicted or quantified. All statements other than statements of historical fact contained in this presentation, including statements regarding our future results of operations or financial condition, busines ...