Planet Labs PBC 10-K

Item 7A. Quantitative and Qualitative Disclosures About Market Risk We have in the past and may in the future be exposed to certain market risks, including foreign currency exchange risk, interest rate risk and inflation risk, in the ordinary course of our business. Information relating to quantitative and qualitative disclosures about these market risks is set forth below. Foreign Currency Exchange Risk We are exposed to foreign currency exchange risk related to transactions in currencies other than the U.S. Dollar, which is our functional currency. Our foreign subsidiaries, revenue and operating expenses expose us to foreign currency exchange risk. For the fiscal years ended January 31, 2022, 2021 and 2020, approximately 20%, 10% and 15 %, respectively, of our revenue was in foreign currencies. These sales were primarily denominated in Euro and Norwegian Krone. A hypothetical 10% change in exchange rates, with the U.S. dollar as the functional and reporting currency, would not result in a material increase or decrease in cost of revenue and operating expenses. Interest Rate Risk Cash and cash equivalents consist solely of cash held in depository accounts and as such are not affected by either an increase or decrease in interest rates. Due to the short term nature of cash equivalents, including our money market accounts, would also not be significantly impacted by changes in the interest rates. As of January 31, 2022 we have no borrowings. As of January 31, 2021, interest rates on our borrowings were primarily fixed. We believe that a 10% increase or decrease in interest rates would not have a material effect on our interest income or expense. 75 Table of Contents Inflation Risk We do not believe that inflation has had a material effect on our business, financial condition or results of operations. If our costs become subject to significant inflationary pressures, we may not be able to fully offset such higher costs through price increases. Our inability or failure to do so could harm our business, financial condition, and operating results.