Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) Securities registered pursuant to Section 12(b) of the Act: | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | --- | --- | --- | | Class A common stock, par value $0.0001 per | PL | New York Stock Exchange | | share | | | | Warrants to purchase Class A common stock, | PL WS | New York Stock Exchange | | at an exercise price of $11.50 per share | | | Indicate b ...

"Planet delivered a solid quarter to start the year. Growth was driven by the government sector where we are seeing increased demand for our data, particularly when enhanced by AI-based partner solutions. We also launched the Planet Insights Platform to empower an ecosystem of customers and partners to easily access and build new solutions with our data," said Will Marshall, Planet's Co-Founder, Chief Executive Officer and Chairperson. "Additionally, we're pleased to announce that the National Reconnaissanc ...

Rick_Jo/iStock via Getty Images Planet Labs (NYSE:PL) is a company that primarily offers high frequency geospatial data from their own constellations of satellites, available to customers through their online platform. One of many 2021 SPACs that since fell to earth, the stock has plummeted from an IPO price of $10. While too much hype dominated then, the opposite problem of unchecked pessimism, plagues the stock today. While there are reasons to be wary, there are catalysts on the horizon including rec ...

Key PointsPlanet Labs is a leader in the earth observation (EO) industry with the largest satellite network consisting of more than 200 satellites including over 550 CubeSat launches.Planet Labs' revolutionary CubeSats are miniature satellites designed and built by unit size, which is 3.9 inches per side for specific mission purposes ranging from EO, scientific research, communications and experimentation.AI has accelerated the demand for earth data gathered by Planet Labs.5 stocks we like better than Plane ...

A downtrend has been apparent in Planet Labs PBC (PL) lately with too much selling pressure. The stock has declined 18.1% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.Guide to Identifying Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for ...

PG&E Expands Contract with Planet to use Satellite Data to Complement Vegetation Management Work OAKLAND, Calif., April 8, 2024 /PRNewswire/ -- Preventing ignitions that can cause catastrophic wildfires requires focus, vigilance and the integration of ever-evolving technology. And as Pacific Gas and Electric Company (PG&E) continues to make progress – including what the Company has calculated to be a 72% reduction of ignitions in high fire-risk areas in 2023 compared to the three-year average – satellite te ...

Planet Labs PBC (PL) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Since a cha ...

Before today's trading session began, shares of Planet Labs (PL -12.17%) were in the black for 2024, having risen more than 3%. Today, however, the stock finds itself in the red for the year. With the company reporting disappointing fourth-quarter 2024 financial results after the market closed on Thursday and unfavorable attention from a Wall Street analyst today, investors are trimming -- or exiting altogether -- their positions in this satellite imaging stock.As of 2:07 p.m. ET, shares of Planet Labs are ...

Financial Data and Key Metrics - Revenue for Q4 2024 was $58 9 million, representing 11% YoY growth [149] - Full-year revenue for FY2024 was $220 7 million, a 15% YoY increase [108] - Non-GAAP gross margin for Q4 was 58%, and 54% for the full year [154] - Adjusted EBITDA loss for Q4 was $9 8 million, and $55 3 million for the full year [154] - Net dollar retention rate (NDRR) for FY2024 was 101%, and 103% with winbacks [153] - Capital expenditures for Q4 were $10 1 million, and $42 4 million for the full year [154] Business Line Data and Key Metrics - Defense & Intelligence vertical grew over 30% YoY in FY2024, driven by the NIWC Pacific win and expansions [118] - Civil Government vertical saw solid growth, with over 50 new and expansion opportunities in Q4 [124] - Commercial vertical revenue decreased YoY due to budget constraints and the completion of a large legacy contract [129] - Agriculture sector faced challenges due to economic pressures, but long-term fundamentals remain strong [3][4] Market Data and Key Metrics - EMEA revenue grew over 20% YoY in Q4, and over 50% for the full year [150][151] - Latin America revenue grew over 30% YoY in Q4, and over 20% for the full year [150][151] - Asia Pacific revenue grew over 15% YoY in Q4, and mid-single digits for the full year [150][151] - North America revenue remained flat YoY in Q4, and grew less than 5% for the full year [150][151] Company Strategy and Industry Competition - The company is shifting towards selling solutions alongside its data, enabled by AI advancements [120][141] - Partnerships with companies like SynMax are driving new capabilities in maritime domain awareness and other areas [121][122] - The company is investing in next-generation fleets, including the Pelican satellite, with the first operational launch expected within 12 months [138] - The company is focusing on operational efficiency and cost reduction to achieve adjusted EBITDA profitability by Q4 FY2025 [161] Management Commentary on Operating Environment and Future Outlook - Management remains optimistic about long-term opportunities in agriculture, insurance, and other commercial sectors despite short-term economic pressures [3][4] - The company is seeing increased demand from defense customers for AI-enabled solutions, particularly in broad area monitoring [109] - Management expects growth to continue to be driven by the government sector, with strong demand in Defense & Intelligence and Civil Government verticals [118][119] - The company is pursuing multiple seven-figure pilot programs with defense agencies, which have the potential to scale significantly [123] Other Important Information - The company surpassed 1,000 customers in Q4 FY2024, a significant milestone [118] - The company signed an eight-figure data license agreement with Carbon Mapper, extending their partnership until 2030 [134] - The company launched Field Boundaries analytics, enhancing its Planetary Variable Solutions suite [139] - The company is hosting a milestone platform launch on April 11, 2024 [143] Q&A Session Summary Question: What are the technical hurdles for the commercial business to recover? - The main challenge is the economic environment, particularly in the agriculture sector, but the long-term fundamentals remain strong [3][4] Question: What contributed to the acceleration in new customer logos in the quarter? - The global commercial organization has been building relationships and educating the market, leading to new customer acquisitions [7][8] Question: Is the winback metric becoming less meaningful? - The convergence of NDRR and winback metrics indicates improved renewal rates, and the company hopes to see the winback metric become obsolete [11][13] Question: Can you explain the gross margin step down in Q1? - The gross margin is impacted by a 300 bps hit from third-party solutions and a 500 bps hit from accelerated depreciation [17][18] Question: How is the EOCL contract progressing? - The implementation is going well, and the company feels confident about the upcoming renewal [25] Question: What is the outlook for the agriculture sector? - The sector is starting to recover, but inflationary pressures and commodity prices remain a challenge [47][48] Question: What is the initial view on SpaceX Starshield? - The Starshield program is a government contract and does not directly impact the commercial market for satellite data [54] Question: What is the status of the Pelican program? - The Pelican program is in a growth CapEx phase, with the first operational satellites expected within 12 months [62] Question: How is the solar cycle affecting satellite operations? - The solar cycle has caused some accelerated depreciation of SkySats, but the fleet has adapted well, and the company has learned valuable lessons [65][66] Question: What is the outlook for large government opportunities? - The company is pursuing multiple large government contracts, including the NGA Luno procurement and NASA CSDA program, with significant potential for growth [83][84]

Part I [Business Overview](index=6&type=section&id=Item%201.%20Business) Planet Labs PBC operates the largest fleet of Earth observation satellites, providing daily, global satellite imagery and analytics - Planet's core business is imaging the entire Earth's landmass daily, creating a vast, non-replicable historical data archive used for analytics and machine learning[17](index=17&type=chunk) - The company generates revenue primarily through fixed-price subscription and usage-based licenses for its data and analytics, employing a "one-to-many" model where each image can be sold multiple times[21](index=21&type=chunk) - As of January 31, 2024, Planet had approximately **1,180 employees** worldwide[84](index=84&type=chunk) [Technology Platform and Products](index=9&type=section&id=Our%20Technology%20Platform) Planet's technology platform is built on agile aerospace, a proprietary big data archive, and advanced analytics capabilities, offering daily monitoring, on-demand tasking, and derived data products - The company's technology is built on three core competencies: "Agile Aerospace" for rapid satellite development, a proprietary Big Data archive growing daily since 2017, and a Platform with Analytics capabilities[48](index=48&type=chunk)[49](index=49&type=chunk)[51](index=51&type=chunk) - Planet offers several data and analytics products, including: - **Planet Monitoring:** Daily scans of the Earth's landmass at up to 3.5m resolution - **Planet Tasking:** High-resolution (up to 50cm) imagery of specific locations on demand - **Derived Products:** Analytics, Planetary Variables, APIs, Apps, and Basemaps that leverage AI and machine learning to extract insights from the data[55](index=55&type=chunk)[56](index=56&type=chunk)[57](index=57&type=chunk) [Growth Strategy](index=12&type=section&id=Our%20Growth%20Strategy) Planet's growth strategy focuses on scaling existing markets, expanding into new verticals, investing in data products, building an ecosystem, developing new sensors, and strategic acquisitions - Planet's growth strategy focuses on several key areas: - **Scaling in Existing Verticals:** Deepening penetration in markets like civil government, agriculture, and defense - **Expansion into New Verticals:** Targeting energy, finance, and insurance by making data more accessible to non-experts - **Investment in Data Products:** Enhancing machine learning and computer vision capabilities - **Platform Ecosystem:** Developing a user and partner ecosystem to build solutions on Planet's platform - **New Sensors & Data Sets:** Strategically investing in new sensors to capture valuable new data - **Strategic Acquisitions:** Continuing to evaluate acquisitions to accelerate growth[71](index=71&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk) - The company has a history of strategic acquisitions, including Sinergise (August 2023), Salo Sciences (January 2023), VanderSat (December 2021), and Terra Bella from Google (April 2017)[77](index=77&type=chunk) [Competition](index=13&type=section&id=Our%20Competition) The satellite imagery industry is characterized by competition from both established incumbents and next-generation players, alongside data analytics platforms - The satellite imagery industry is divided between incumbents like Airbus and Maxar, and next-generation players such as BlackSky and Satellogic; Planet also competes with data analytics platforms that use geospatial data from various sources[78](index=78&type=chunk)[80](index=80&type=chunk) [Risk Factors](index=15&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including a history of net losses, intense competition from both commercial and government entities, and reliance on the successful launch and operation of its satellite constellation - The company has a history of operating losses, reporting net losses of **$140.5 million**, **$162.0 million**, and **$137.1 million** for fiscal years 2024, 2023, and 2022, respectively, with an accumulated deficit of **$1,079.8 million** as of January 31, 2024[105](index=105&type=chunk) - The business is highly dependent on the successful production, launch, and operation of its satellites, which are subject to risks like launch failures, in-orbit malfunctions, and interference[124](index=124&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk) - A significant portion of revenue comes from government contracts, which are subject to unique risks such as termination for convenience, budget uncertainties, and stringent regulatory requirements (e.g., FAR)[137](index=137&type=chunk)[144](index=144&type=chunk) - The multi-class stock structure concentrates over **62% of voting power** with the Planet Founders, limiting other investors' ability to influence major corporate decisions[267](index=267&type=chunk) - As a public benefit corporation, the company is required to balance stockholder interests with its public benefit purpose, which could lead to decisions that do not maximize short-term financial results and may increase the risk of derivative litigation[283](index=283&type=chunk)[289](index=289&type=chunk)[293](index=293&type=chunk) [Cybersecurity](index=56&type=section&id=Item%201C.%20Cybersecurity) Planet has implemented a comprehensive cybersecurity risk management program covering its corporate, space, data pipeline, and customer delivery domains - The company employs a cross-functional approach to manage cybersecurity threats across four interdependent domains: corporate security, space segment, data pipeline, and customer delivery[302](index=302&type=chunk) - A dedicated security team, led by a Chief Security Officer, is responsible for risk assessments and managing security controls[304](index=304&type=chunk) - The Board of Directors' Audit Committee provides oversight of cybersecurity risks, receiving periodic reports from management[308](index=308&type=chunk) [Properties](index=57&type=section&id=Item%202.%20Properties) The company's main facilities are leased, with its corporate headquarters in San Francisco and European offices supporting various functions - The corporate headquarters in San Francisco, California, spans approximately **71,280 square feet** and houses all satellite manufacturing, testing, and R&D[311](index=311&type=chunk) - European offices are located in Berlin (Germany), Haarlem (Netherlands), Ljubljana (Slovenia), and Graz (Austria), supporting sales, software engineering, and satellite operations[311](index=311&type=chunk) Part II [Market for Common Equity and Related Matters](index=58&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Planet's Class A common stock and warrants are traded on the New York Stock Exchange, and the company does not anticipate paying cash dividends in the foreseeable future - The company's Class A common stock and warrants are listed on the NYSE under the trading symbols "PL" and "PL WS"[316](index=316&type=chunk) - As of March 21, 2024, there were **103 holders of record** for Class A common stock, **2** for Class B common stock, and **4** for warrants[317](index=317&type=chunk) - The company has never declared or paid cash dividends and does not intend to in the foreseeable future[318](index=318&type=chunk) Stock Performance Comparison (December 7, 2021 - January 31, 2024) | Date | Planet Labs PBC Class A | NASDAQ Composite | NASDAQ Computer | | :--- | :--- | :--- | :--- | | 12/7/21 | $100.00 | $100.00 | $100.00 | | 1/31/22 | $56.43 | $91.72 | $93.59 | | 1/31/23 | $45.79 | $75.25 | $73.74 | | 1/31/24 | $20.91 | $99.33 | $110.07 | [Management's Discussion and Analysis (MD&A)](index=60&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In fiscal year 2024, Planet's revenue grew 15% to $220.7 million, driven by customer growth and expansion, particularly in government sectors, while reporting a reduced net loss [Recent Developments](index=62&type=section&id=Recent%20Developments) Recent developments include the acquisition of Sinergise and a strategic headcount reduction to enhance operational efficiency - In August 2023, the company acquired Sinergise, a cloud-based geo-spatial analysis business, for approximately **$40.0 million** in cash, stock, and escrowed funds[342](index=342&type=chunk)[605](index=605&type=chunk) - In August 2023, Planet implemented a headcount reduction of approximately **10%** to focus on growth opportunities and operational efficiency, resulting in a **$7.4 million** charge for termination benefits[344](index=344&type=chunk)[345](index=345&type=chunk) [Key Operational and Business Metrics](index=63&type=section&id=Key%20Operational%20and%20Business%20Metrics) Key operational metrics for fiscal year 2024 show changes in Net Dollar Retention Rate, customer count, recurring ACV, and capital expenditures Key Metrics (Fiscal Year Ended Jan 31) | Metric | FY 2024 | FY 2023 | Change Driver | | :--- | :--- | :--- | :--- | | Net Dollar Retention Rate | 101% | 131% | Decrease due to large prior-year government expansions and current-year renewal delays | | EoP Customer Count | 1,018 | 882 | Increased demand for data | | Percent of Recurring ACV | 93% | 94% | Remained stable | | Capital Expenditures as % of Revenue | 19% | 7% | Increased investment in next-gen Pelican satellites | [Results of Operations (FY2024 vs. FY2023)](index=68&type=section&id=Results%20of%20Operations) Fiscal year 2024 results show a 15% revenue increase and a reduced net loss, driven by customer growth and contract expansions, despite higher costs of revenue Consolidated Results of Operations (in thousands) | Line Item | FY 2024 | FY 2023 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | $220,696 | $191,256 | $29,440 | 15% | | Cost of revenue | $107,746 | $97,248 | $10,498 | 11% | | **Gross profit** | **$112,950** | **$94,008** | **$18,942** | **20%** | | Research and development | $116,339 | $110,916 | $5,423 | 5% | | Sales and marketing | $86,304 | $78,020 | $8,284 | 11% | | General and administrative | $80,055 | $80,747 | ($692) | (1)% | | **Loss from operations** | **($169,748)** | **($175,675)** | **$5,927** | **(3)%** | | **Net loss** | **($140,509)** | **($161,966)** | **$21,457** | **(13)%** | - Revenue increased by **15%** primarily due to a **$17.6 million** increase from customer growth (including the Sinergise acquisition) and an **$11.8 million** net expansion of existing customer contracts, mainly in the Civil Government and Defense sectors[380](index=380&type=chunk) - Cost of revenue increased **11%** due to higher hosting costs, employee-related costs (including severance), and depreciation; depreciation expense increased by **$7.0 million** due to changes in the estimated useful lives of certain high-resolution satellites[381](index=381&type=chunk)[382](index=382&type=chunk)[383](index=383&type=chunk) [Non-GAAP Financial Measures](index=70&type=section&id=Non-GAAP%20Information) Non-GAAP financial measures provide insights into adjusted EBITDA and backlog, offering a clearer view of operational performance and future revenue potential Adjusted EBITDA Reconciliation (in thousands) | | Year Ended Jan 31, 2024 | Year Ended Jan 31, 2023 | | :--- | :--- | :--- | | Net loss | $(140,509) | $(161,966) | | Adjustments (Interest, Tax, D&A, etc.) | $85,225 | $105,165 | | **Adjusted EBITDA** | **$(55,284)** | **$(56,801)** | Backlog Reconciliation (in thousands) | | Year Ended Jan 31, 2024 | Year Ended Jan 31, 2023 | | :--- | :--- | :--- | | Remaining performance obligations | $132,571 | $151,976 | | Cancellable amount of contract value | $109,821 | $127,667 | | **Backlog** | **$242,392** | **$279,643** | [Liquidity and Capital Resources](index=73&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by cash and short-term investments, with cash flow analysis detailing operational, investing, and financing activities - As of January 31, 2024, the company had **$83.9 million** in cash and cash equivalents and **$215.0 million** in highly liquid short-term investments[406](index=406&type=chunk) Summary of Cash Flows (in thousands) | Activity | Year Ended Jan 31, 2024 | Year Ended Jan 31, 2023 | | :--- | :--- | :--- | | Net cash used in Operating activities | $(50,711) | $(73,933) | | Net cash used in Investing activities | $(33,586) | $(242,263) | | Net cash (used in) provided by Financing activities | $(1,598) | $7,860 | [Critical Accounting Policies and Estimates](index=75&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Critical accounting policies involve significant judgments in revenue recognition, stock-based compensation, asset valuation, business combinations, and income taxes, impacting financial reporting - Key critical accounting policies involve significant judgments and estimates, including Revenue Recognition (identifying performance obligations and determining standalone selling price), Stock-Based Compensation, valuation of Warrant Liabilities, Property and Equipment (especially satellite useful lives), Business Combinations, Goodwill, and Income Taxes[418](index=418&type=chunk)[494](index=494&type=chunk) - For revenue recognition, the company identifies access to its platform and the ability to download imagery as two separate performance obligations, allocating the contract price accordingly; revenue for access is recognized ratably, while download revenue is recognized based on usage or ratably if unlimited[422](index=422&type=chunk)[525](index=525&type=chunk) - During fiscal year 2024, the company revised the estimated useful lives of certain high-resolution satellites, resulting in a prospective increase of **$7.0 million** in depreciation expense[442](index=442&type=chunk)[514](index=514&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=79&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from foreign currency fluctuations, interest rate changes, and inflation, with foreign currency risk being notable due to international revenue - Approximately **24% of revenue** for the fiscal year ended January 31, 2024, was denominated in foreign currencies, primarily the Euro and Norwegian Krone, exposing the company to foreign currency exchange risk[453](index=453&type=chunk) - The company holds a portfolio of cash, cash equivalents, and short-term investments; due to the short-term nature of these investments, management believes a **100 basis point change** in interest rates would not have a material effect on the portfolio's fair value[455](index=455&type=chunk) [Financial Statements and Supplementary Data](index=80&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the audited consolidated financial statements for the fiscal year ended January 31, 2024, including auditor's reports, balance sheets, statements of operations, comprehensive loss, stockholders' equity, and cash flows, with accompanying notes detailing accounting policies and transactions [Consolidated Balance Sheets](index=84&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets present the company's financial position, detailing assets, liabilities, and equity as of January 31, 2024, and 2023 Consolidated Balance Sheet Highlights (in thousands) | | Jan 31, 2024 | Jan 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $83,866 | $181,892 | | Short-term investments | $215,041 | $226,868 | | Property and equipment, net | $113,429 | $108,091 | | Goodwill | $136,256 | $112,748 | | **Total Assets** | **$701,997** | **$752,723** | | **Liabilities & Equity** | | | | Deferred revenue (current & non-current) | $77,620 | $54,782 | | Public and private placement warrant liabilities | $2,961 | $16,670 | | **Total Liabilities** | **$183,979** | **$176,619** | | **Total Stockholders' Equity** | **$518,018** | **$576,104** | [Consolidated Statements of Operations](index=85&type=section&id=Consolidated%20Statements%20of%20Operations) The consolidated statements of operations summarize the company's financial performance, including revenue, gross profit, and net loss for fiscal years 2024, 2023, and 2022 Consolidated Statements of Operations (in thousands) | | FY 2024 | FY 2023 | FY 2022 | | :--- | :--- | :--- | :--- | | Revenue | $220,696 | $191,256 | $131,209 | | Gross profit | $112,950 | $94,008 | $48,222 | | Loss from operations | $(169,748) | $(175,675) | $(128,051) | | **Net loss** | **$(140,509)** | **$(161,966)** | **$(137,124)** | | **Net loss per share** | **$(0.50)** | **$(0.61)** | **$(1.72)** | [Consolidated Statements of Cash Flows](index=89&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The consolidated statements of cash flows detail the inflows and outflows of cash from operating, investing, and financing activities for fiscal years 2024, 2023, and 2022 Consolidated Statements of Cash Flows (in thousands) | | FY 2024 | FY 2023 | FY 2022 | | :--- | :--- | :--- | :--- | | Net cash used in operating activities | $(50,711) | $(73,933) | $(42,211) | | Net cash used in investing activities | $(33,586) | $(242,263) | $(25,149) | | Net cash (used in) provided by financing activities | $(1,598) | $7,860 | $489,184 | [Notes to Consolidated Financial Statements](index=91&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes to the consolidated financial statements provide detailed information on acquisitions, revenue disaggregation, commitments, related party transactions, and stock-based compensation - **Acquisitions (Note 6):** The company acquired Sinergise on August 4, 2023, for total consideration of approximately **$40.0 million**; it also acquired Salo Sciences on January 3, 2023, for total consideration of **$11.8 million**, including contingent consideration[604](index=604&type=chunk)[614](index=614&type=chunk) - **Revenue Disaggregation (Note 4):** For FY2024, revenue from the United States was **$98.7 million**, while revenue from the rest of the world was **$122.0 million**[587](index=587&type=chunk) - **Commitments (Note 11):** The company has minimum purchase commitments for hosting services from Google totaling **$127.5 million** from fiscal 2025 through 2028[652](index=652&type=chunk) - **Related Party Transactions (Note 15):** Google, a holder of over **10%** of Class A common stock, is a significant customer and vendor; in FY2024, Planet recognized **$1.3 million** in revenue from Google and recorded **$28.7 million** in hosting expense from Google[696](index=696&type=chunk)[697](index=697&type=chunk)[698](index=698&type=chunk)[699](index=699&type=chunk) - **Stock-Based Compensation (Note 16):** As of January 31, 2024, total unrecognized compensation cost related to unvested RSUs was **$98.9 million**, expected to be recognized over approximately **2.8 years**[712](index=712&type=chunk) [Controls and Procedures](index=134&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of January 31, 2024 - Management, including the principal executive and financial officers, concluded that disclosure controls and procedures were effective as of January 31, 2024[732](index=732&type=chunk) - Management concluded that internal control over financial reporting was effective as of January 31, 2024, based on the COSO 2013 framework; the independent auditor, Ernst & Young LLP, issued an unqualified opinion on the effectiveness of internal control[334](index=334&type=chunk)[469](index=469&type=chunk)