HashiCorp(US:HCP)2024-03-21 01:12Financial Position - As of January 31, 2024, the company reported cash, cash equivalents, and short-term investments totaling $1,278.6 million[398]. - Total current assets rose to $1.54 billion, compared to $1.51 billion in the previous year, reflecting a 2.8% increase[416]. - Total liabilities increased to $479.0 million, up from $423.0 million in 2023, marking a 13.2% rise[416]. - Cash and cash equivalents decreased to $763.4 million from $1.29 billion, a decline of 40.6%[416]. - The total stockholders' equity as of January 31, 2024, was $1.213 billion, reflecting a decrease from $1.282 billion as of January 31, 2023[424]. - The company reported a total cash, cash equivalents, and restricted cash balance of $763.414 million as of January 31, 2024, down from $1.286 billion at the end of the previous fiscal year[427]. - Total short-term investments amounted to $515.1 million, with no marketable securities in a continuous unrealized loss position for over 12 months[523]. - As of January 31, 2024, total assets measured at fair value amounted to $598.794 million, with cash and cash equivalents contributing $83.613 million[527]. Revenue and Growth - Total revenue for the year ended January 31, 2024, was $583.1 million, a 22.5% increase from $475.9 million in 2023[418]. - Subscription revenue reached $564.6 million, up 22.4% from $460.9 million in the previous year[418]. - Subscription revenue accounted for 97% of total revenue, with support services generating $420.9 million, representing 72% of total revenue[518]. - Remaining performance obligations (RPOs) as of January 31, 2024, were $775.8 million, with approximately 59% expected to be recognized as revenue over the next 12 months[520]. - The company anticipates continued growth in international operations, necessitating ongoing reassessment of risk management strategies[400]. Expenses and Losses - The net loss for the year was $190.7 million, an improvement from a net loss of $274.3 million in 2023[421]. - Research and development expenses were $222.6 million, a 13.9% increase from $195.4 million in 2023[418]. - The company incurred $20.860 million in cash outflows related to business combinations during fiscal 2024[427]. - The loss before income taxes for the year ended January 31, 2024, was $189.6 million, a decrease from $273.3 million in 2023[569]. - The total current tax expense for the year ended January 31, 2024, was $1.5 million, compared to $1.2 million in 2023[570]. Stock and Compensation - The company reported a weighted-average share count of 193.8 million for calculating net loss per share, compared to 186.0 million in the previous year[418]. - Stock-based compensation expense for fiscal 2024 was $170.617 million, slightly lower than $171.161 million in fiscal 2023[427]. - The total stock-based compensation expense for the year ended January 31, 2024, was $175.4 million, slightly increasing from $175.4 million in 2023[563]. - The Company recognized $13.1 million of stock-based compensation expense related to the Employee Stock Purchase Plan (ESPP) for the year ended January 31, 2024[558]. - The total intrinsic value of options exercised during fiscal 2024 was $67.6 million, down from $94.1 million in fiscal 2023[553]. Investments and Acquisitions - The company acquired BluBracket, Inc. for an aggregate purchase price of $25.1 million, with $4.2 million held back for indemnification obligations[509]. - The fair value of developed technology and customer relationships acquired was estimated at $12.5 million and $1.0 million, respectively[511]. - The Company recognized $1.7 million in compensation expense related to retention payments for BluBracket employees during fiscal year 2024[509]. - The Company incurred $0.5 million in acquisition-related costs, recorded in general and administrative expenses[512]. - As of January 31, 2024, goodwill was recorded at $12.2 million, reflecting the acquisition of BluBracket[513]. Risk Management - The company implemented a foreign currency risk management program, entering into foreign currency forward contracts to hedge forecasted expenses[400]. - A hypothetical 10% weakening of the U.S. dollar could increase operating expenses by approximately 2% due to foreign currency fluctuations[399]. - The company has experienced no material changes in market risk exposures during fiscal 2024[397]. - The company has not reported any material effects from health epidemics or cybersecurity risks on its operations[398]. - Remeasurement gains and losses from foreign currency transactions were not material for fiscal years 2022 to 2024[433]. Taxation - The company recorded a net deferred tax asset of $322.5 million as of January 31, 2024, an increase from $271.7 million in 2023[572]. - Unrecognized tax benefits increased to approximately $15.3 million as of January 31, 2024, from $10.4 million in 2023[578]. - The company has U.S. federal and state net operating loss carryforwards of approximately $690.4 million and $602.2 million, respectively[573]. - The valuation allowance against federal and state deferred tax assets increased by $50.7 million for fiscal 2024[572]. - The company generated a deferred tax asset of $86.6 million for capitalized research and experimentation expenditures for the year ended January 31, 2024[575]. Workforce and Operational Changes - The company announced a workforce reduction plan impacting approximately 8% of its workforce, completed by January 31, 2024, with related charges totaling $7.3 million[567][568]. - The company has not capitalized any software development costs through fiscal 2024, 2023, and 2022, charging all costs to research and development expenses[479]. - The Company applies the practical expedient to not recognize lease assets and liabilities for leases with an original term of 12 months or less[472]. - The weighted average remaining lease term decreased to 3.4 years in 2024 from 4.2 years in 2023[541]. - The total lease costs for the year ended January 31, 2024, were $4.301 million, compared to $3.832 million in 2023, representing an increase of approximately 12.2%[539].