2 unchanged sentences
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to help the reader understand the results of operations and financial condition of Planet Labs PBC.
−Removed: The MD&A is provided as a supplement and should be read in conjunction with the consolidated financial statements and related notes included in Part II, Item 8, “Financial Statements” of this Form 10-K.
+Added: The MD&A is provided as a supplement to and should be read in conjunction with the consolidated financial statements and related notes included in Part II, Item 8, “Financial Statements” of this Form 10-K.
This discussion contains forward-looking statements and involves numerous risks and uncertainties, including, but not limited to, those described in Part I, Item 1A, “Risk Factors” of this Form 10-K.
12 unchanged sentences
To help further our mission, we have developed advanced satellite technology that increases the cost performance of each satellite.
−Removed: This has enabled us to launch large fleets of satellites at lower cost and in turn record over 2,700 images on average for every point on Earth’s landmass, a non-replicable historical archive for analytics, machine learning, and insights.
−Removed: We have advanced data processing capabilities that enable us to produce “AI-ready” data sets.
−Removed: As this data set continues to grow, we believe its value to our customers will further increase.
+Added: This has enabled us to launch large fleets of satellites at lower cost and in turn record over 3,000 images on average for every point on Earth’s landmass, a non-replicable historical archive that can power analytics, machine learning, and insights.
+Added: We have advanced data processing capabilities that enable us to produce “AI-ready” data sets and have partnered with third-parties to offer AI-enabled data solutions.
+Added: As these data sets continue to grow and we continue to develop these partnerships, we believe the value of our data and analytics solutions to our customers will further increase.
We currently serve customers across large commercial and government verticals, including agriculture, mapping, energy, forestry, finance and insurance, as well as federal, civil, state, and local governments.
1 unchanged sentence
Our proprietary data set and analytics are delivered pursuant to subscription and usage-based data licensing agreements and are accessed by our customers through our online platform and subscription APIs.
−Removed: We believe our efficient cost structure, one-to-many business model and differentiated data set have enabled us to grow our customer base across multiple vertical markets.
−Removed: As of January 31, 2024, our End of Period (“EoP”) Customer Count was 1,018 customers, which represented a 15% year-over-year growth when compared to January 31, 2023.
−Removed: For a definition of EoP Customer Count, see the section titled “Key Operational and Business Metrics.” Over 90% of our ACV Book of Business (as defined below) consists of annual or multi-year contracts.
−Removed: Our average contract length continues to be approximately two years, weighted on an annual contract value basis.
+Added: We believe our efficient cost structure, one-to-many business model and differentiated data set have enabled the growth of our business.
The Business Combination
2 unchanged sentences
IV (“dMY IV”), a special purpose acquisition company (“SPAC”) incorporated in Delaware on December 15, 2020, Photon Merger Sub, Inc., a Delaware corporation and a direct wholly owned subsidiary of dMY IV (“First Merger Sub”), and Photon Merger Sub Two, LLC, a Delaware limited liability company and a direct wholly owned subsidiary of dMY IV (“Second Merger Sub”).
−Removed: Pursuant to the Merger Agreement, upon the favorable vote of dMY IV’s stockholders on December 3, 2021, on December 7, 2021, First Merger Sub merged with and into Former Planet (the “Surviving Corporation”), with Former Planet surviving the merger as a wholly owned subsidiary of dMY IV (the “First Merger”), and pursuant to Former Planet’s election immediately following the First Merger and as part of the same overall transaction as the First Merger, the Surviving Corporation merged with and into dMY IV, with dMY IV surviving the merger (the “Business Combination”).
+Added: Pursuant to the Merger Agreement, on December 7, 2021, First Merger Sub merged with and into Former Planet (the “Surviving Corporation”), with Former Planet surviving the merger as a wholly owned subsidiary of dMY IV (the “First Merger”), and the Surviving Corporation merged with and into dMY IV, with dMY IV surviving the merger (the “Business Combination”).
Following the completion of the Business Combination, dMY IV was renamed Planet Labs PBC.
−Removed: As a result of the Business Combination, we became a SEC-registered company listed on the NYSE which required us to hire additional personnel and implement procedures and processes to address public company regulatory requirements and customary practices.
−Removed: Our results of operations and statements of financial position may not be comparable between periods as a result of the Business Combination.
+Added: As a result of the Business Combination, we became a public company listed on the NYSE which required us to hire additional personnel and implement procedures and processes to address public company regulatory requirements and customary practices.
Our Business Model
−Removed: We primarily generate revenue through selling licenses to our data and analytics to customers over an entirely cloud-based platform via fixed price subscription and usage-based contracts.
+Added: We primarily generate revenue through selling licenses to our data and analytics to customers over a cloud-based platform via fixed price subscription and usage-based contracts.
Data licensing subscriptions and minimum commitment usage-based contracts provide a large recurring revenue base for our business with a low incremental cost to serve each additional customer.
1 unchanged sentence
Additionally, we also generate a small amount of revenue from sales of third-party imagery, professional services, and customer support.
+Added: From time to time, we have also entered into strategic satellite services and technologies partnerships in which we build and operate satellites for our partners.
We employ a “land-and-expand” go-to-market strategy with the goal to deliver increasing value to our customers and generate more revenue with each customer over time by expanding the scope of the services we offer.
3 unchanged sentences
Scaling in Existing Verticals :
−Removed: We plan to invest in sales, marketing, and software solutions to expand within our existing customer base and further penetrate vertical markets in which end users are early adopters of geospatial data, such as civil government, agriculture, and defense and intelligence.
+Added: We have invested in our sales and marketing efforts to address the vertical markets in which we operate, as well as in software solutions to expand within our existing customer base.
+Added: We plan to further penetrate vertical markets in which end users are early adopters of geospatial data, such as civil government, agriculture, and defense and intelligence through targeted sales and marketing activities and continued investment in new solutions for these verticals.
Expansion into New Verticals and Applications :
3 unchanged sentences
While we have customers and partners today in many of these verticals, we believe enhancing our data to meet their needs has the potential to accelerate the proliferation of our data and analytics usage across more end users.
−Removed: Additionally, we currently have multiple partners with solutions that rapidly generate insights for customers using our proprietary data and AI technology.
+Added: Additionally, we currently have multiple partners with solutions that rapidly generate insights for their customers using our licensed proprietary data and Planet Analytics or their AI technology.
Their capabilities include training models on our proprietary data to find any object of interest to a user over broad areas of land or sea.
−Removed: We believe recent and ongoing advancements in AI will support making our datasets more accessible to customers and users across new and existing verticals by speeding customer time to value through these capabilities.
−Removed: Continued Investment in Data Products:
+Added: We believe recent and ongoing industry advancements in AI will support making our datasets more accessible to customers and users across new and existing verticals by speeding customer time to value through these capabilities.
+Added: Continued Investment in Data Products and Solutions:
We plan to scale and expand our existing products, as well as add new solutions, by building on our machine learning and computer vision capabilities with remote sensing techniques to fuse multiple data sources.
−Removed: products allow our customers to consume simple, actionable time-series data within their existing workflows.
+Added: These products allow our customers to consume simple, actionable time-series data within their existing workflows.
We intend to create many of these key data sets internally, as well as in collaboration with our partners who have deep vertical expertise.
2 unchanged sentences
By developing a robust applications ecosystem, we believe we can create a network effect, potentially accelerating our growth and deepening our market penetration.
−Removed: Factors Affecting the Results of Operations
+Added: New Sensors & Data Sets:
+Added: We plan to make strategic investments in building new sensors to capture additional data sets from space.
+Added: As we grow our customer base and the use cases we can address, we believe we can better understand what additional data sets our customers are eager to access and therefore which sensors might enable us to capture additional data that is valuable to such customers.
+Added: By leveraging our agile aerospace approach to space systems, we believe we are well-positioned to introduce new Earth observation sensors into orbit to capture new types of data with greater capital efficiency and speed than other satellite data providers.
+Added: Having these capabilities can deepen our value proposition to customers and help us both acquire new customers and expand our offering to existing customers.
+Added: Factors Affecting Our Results of Operations
We believe that our financial condition and result of operations have been, and will continue to be, affected by a number of factors that present significant opportunities for us but also pose risks and challenges, including those discussed below and in the section of this Form 10-K titled “ Risk Factors .”
Recent Developments
−Removed: Sinergise Acquisition
−Removed: On March 26, 2023, the Company entered into an asset purchase agreement with Holding Sinergise d.o.o., a company existing under the laws of Slovenia (“Sinergise”), and its subsidiaries and certain shareholders of Sinergise, to acquire the cloud-based geo-spatial analysis products, platforms and solutions business from Sinergise.
−Removed: On August 4, 2023, we completed the acquisition.
−Removed: The acquisition date fair value of the consideration transferred was approximately $40.0 million, consisting of $7.5 million in cash, $21.6 million in the issuance of our Class A common stock and $10.8 million relating to liabilities for cash consideration placed into escrow.
−Removed: The acquisition has been accounted for as a business combination and is expected to expand our data analysis platform and allow customers to extract insights from earth observation data more easily.
−Removed: Refer to Note 6 “Acquisitions” for further information regarding this transaction.
Headcount Reduction
−Removed: In August 2023, we announced a plan to reduce our global headcount by approximately 10% of our total number of employees prior to the reduction (the “headcount reduction”).
−Removed: This action was taken to increase our focus on high priority growth opportunities and operational efficiency.
−Removed: As a result of the headcount reduction, in the fiscal year ending 2024, we recognized $7.4 million of costs for one-time employee termination benefits consisting of severance and other employee costs.
+Added: In June 2024, we committed to a plan to reduce our global headcount by approximately 17% of our total number of employees prior to the reduction (the “2024 headcount reduction”).
+Added: This action was taken consistent with our ongoing focus on aligning the Company’s resources to the market opportunity, improving operational efficiency, and supporting the long-term growth and profitability of the business.
+Added: As a result of the 2024 headcount reduction, in the fiscal year ended January 31, 2025, we recognized $10.6 million of costs for one-time employee termination benefits consisting of severance and other employee-related costs.
We also recognized a $1.4 million stock-based compensation benefit primarily related to the reversal of previously recognized stock-based compensation expenses for unvested stock awards.
−Removed: Refer to Note 8 “Restructuring” for further information regarding headcount reduction.
+Added: The headcount reductions, including the remaining cash payments, were substantially complete as of January 31, 2025.
+Added: Refer to Note 7 “Restructuring” for further information regarding the 2024 headcount reduction.
+Added: Commercial Satellite Agreement
+Added: In January 2025, Planet entered into a multi-year $230 million commercial agreement with SKY Perfect JSAT (“JSAT”) through its U.S.-based subsidiary.
+Added: Pursuant to the agreement, Planet will build and operate a constellation of ten Pelican high resolution satellites that will be owned by JSAT.
+Added: In connection with the agreement, Planet is provided with licensing rights for certain imagery generated from the Pelicans that it will utilize to serve its customers around the world.
+Added: The satellites are expected to launch beginning in 2027.
+Added: There was no revenue recognized for the agreement during the fiscal year ended January 31, 2025.
+Added: The agreement includes payments totaling $230 million which become payable based on specified milestones.
+Added: We expect that revenue for the build of the Pelicans will be recognized over time as work progresses and that revenue for services will be recognized as they are rendered.
+Added: We expect that costs associated with the build of the Pelicans and performance of services will be recognized as cost of revenue.
Continuing to Acquire New Customers
1 unchanged sentence
We believe our ability to attract customers will be driven by our ability to continue to improve our data and offer software and analytic solutions that make our data easier to consume and integrate into our customers’ workflows, our success in offering new data sets and products to solve customer problems, increases in our global sales presence and increases in our marketing investments.
−Removed: As part of this strategy, we have recently made Planet’s data available for purchase directly through our Sentinel Hub self-service platform, which facilitates rapid user adoption, particularly by empowering users to access our solutions without formal sales interaction.
+Added: As part of this strategy, we have recently made Planet’s data available for purchase directly through our Planet Insights Platform (which has integrated the former Sentinel Hub platform), which facilitates rapid user adoption, particularly by empowering users to self-service our solutions without formal sales interaction.
We believe this serves as a natural entry point for some of our smaller accounts, enabling them to realize the value of Planet’s offerings, leading to broader awareness of our solutions throughout their networks and organizations.
In addition, we plan to continue investing in making our data more digestible and accessible to non-technical business users and to build solutions to address more use cases and expand our addressable market.
−Removed: As a result of this strategy, we anticipate our research and development expenditures will increase in the near term.
+Added: As a result of this strategy, we anticipate continuing to invest in our research and development.
We will also aim to expand our reach with customers by partnering with independent software vendors and solution providers who are building vertical market-specific solutions.
−Removed: While we have customers and partners today in many markets, we believe that our increased investment in developing software analytics solutions has the potential to accelerate
−Removed: the usage of our data and analytics across broader audiences.
+Added: While we have customers and partners today in many markets, we believe that our increased investment in developing software analytics solutions has the potential to accelerate the usage of our data and analytics across broader audiences.
Additionally, the timing of securing new customer contracts, including when it occurs during the year and the length of the sales cycle, as well as the size of the contracts, can impact our operating performance.
3 unchanged sentences
Therefore, to increase customer retention and sales to existing customers, we have invested in our customer success function, continuous improvements to our existing data, and the software tools and analytic tools that make our data easier to consume.
−Removed: As a result of such investments, we anticipate our cost of revenue, operating expenses, and capital expenditures will increase as we continue to prioritize customer retention and expansion and consequently, we are likely to experience losses in the near term, delaying our ability to achieve profitability and adversely affecting cash flows.
+Added: As a result of such investments, we anticipate our cost of revenue, operating expenses, and capital expenditures may increase as we continue to prioritize customer retention and expansion.
Developing New Sensors and Data Sets
10 unchanged sentences
We believe that the seasonal trends that we have experienced in the past may occur in the future.
−Removed: To the extent that we experience seasonality, it may impact our operating results and financial metrics, as well as our ability to forecast future operating results and financial metrics.
+Added: To the extent that we experience seasonality, it may impact our operating results and financial metrics, as well as our ability to forecast
+Added: future operating results and financial metrics.
Additionally, when we introduce new products to the market, we may not have sufficient experience in selling certain products to determine if demand for these products are or will be subject to material seasonality.
2 unchanged sentences
ACV and EoP ACV Book of Business
−Removed: In connection with the calculation of several of the key operational and business metrics we utilize, we calculate Annual Contract Value (“ACV”) for contracts of one year or greater as the total amount of value that a customer has contracted to pay for the most recent 12 month period for the contract, excluding customers that are exclusively Sentinel Hub self-service paying users.
+Added: In connection with the calculation of several of the key operational and business metrics we utilize, we calculate Annual Contract Value (“ACV”) for contracts of one year or greater as the total amount of value that a customer has contracted to pay for the most recent 12 month period for the contract, excluding customers that are exclusively Planet Insights Platform (which has integrated the former Sentinel Hub platform) self-service paying users, as well as the value of any satellite services contracts.
For short-term contracts (contracts less than 12 months), ACV is equal to total contract value.
We also calculate EoP ACV Book of Business in connection with the calculation of several of the key operational and business metrics we utilize.
−Removed: We define EoP ACV Book of Business as the sum of the ACV of all contracts that are active on the last day of the period pursuant to the effective dates and end dates of such contracts, excluding customers that are exclusively Sentinel Hub self-service paying users.
+Added: We define EoP ACV Book of Business as the sum of the ACV of all contracts that are active on the last day of the period pursuant to the effective dates and end dates of such contracts, excluding customers that are exclusively Planet Insights Platform self-service paying users.
Active contracts exclude any contract that has been canceled, expired prior to the last day of the period without renewing, or for any other reason is not expected to generate revenue in the subsequent period.
10 unchanged sentences
Management applies judgment in determining the value of active contracts in a given period, as set forth in the definition of ACV above.
−Removed: Net Dollar Retention Rate decreased to 101% for the fiscal year ended January 31, 2024 as compared to 131% for the fiscal year ended January 31, 2023, primarily due to large government contract expansions in the prior fiscal year ended January 31, 2023 and the impact from delays in renewals and expansions of some government contracts and contractions of certain contracts with customers in the commercial vertical in the fiscal year ended January 31, 2024.
+Added: Net Dollar Retention Rate increased to 106% for the fiscal year ended January 31, 2025 as compared to 101% for the fiscal year ended January 31, 2024, primarily due to large government contract expansions during the fiscal year ended January 31, 2025.
Net Dollar Retention Rate including Winbacks
2 unchanged sentences
We assess two metrics for net dollar retention—Net Dollar Retention Rate, as described above, and Net Dollar Retention Rate including winbacks.
−Removed: A winback is a previously existing customer that was inactive at the start of the measurement period but has reactivated during the measurement period.
+Added: A winback is a previously existing customer that was inactive at the start of the
+Added: measurement period but has reactivated during the measurement period.
The reactivation period must be within 24 months from the last active contract with the customer;
4 unchanged sentences
Beyond the judgments underlying managements’ calculation of Net Dollar Retention Rate set forth above, there are no additional assumptions or estimates made in connection with Net Dollar Retention Rate including winbacks.
−Removed: Net Dollar Retention Rate including winbacks decreased to 103% for the fiscal year ended January 31, 2024 as compared to 134% for the fiscal year ended January 31, 2023, primarily due to large government contract expansions in the fiscal year ended January 31, 2023
−Removed: and the impact from delays in renewals and expansions of some government contracts and contractions of certain commercial contracts with customers in the commercial vertical in the fiscal year ended January 31, 2024.
+Added: Net Dollar Retention Rate including winbacks increased to 108% for the fiscal year ended January 31, 2025 as compared to 103% for the fiscal year ended January 31, 2024, primarily due to large government contract expansions during the fiscal year ended January 31, 2025.
EoP Customer Count
1 unchanged sentence
EoP Customer Count 976 1,018
−Removed: We define EoP Customer Count as the total count of all existing customers at the end of the period excluding customers that are exclusively Sentinel Hub self-service paying users.
+Added: We define EoP Customer Count as the total count of all existing customers at the end of the period excluding customers that are exclusively Planet Insights Platform (which has integrated the former Sentinel Hub platform) self-service paying users.
For EoP Customer Count, we define existing customers as customers with an active contract with us at the end of the reported period.
5 unchanged sentences
A customer with multiple divisions, segments, or subsidiaries are also counted as a single unique customer based on the parent organization or parent account.
−Removed: For EoP Customer Count, we do not include users that only utilize our self-service Sentinel Hub web based ordering system, which we acquired in August 2023, and which offers standard starter packages on a monthly or annual basis.
−Removed: We believe excluding these users from EoP Customer Count creates a more useful metric, as we view the Sentinel Hub starter packages as entry points for smaller accounts, leading to broader awareness of our solutions throughout their networks and organizations.
+Added: For EoP Customer Count, we do not include users that only utilize our self-service Planet Insights Platform web based ordering system, which we acquired in August 2023, and which offers standard starter packages on a monthly or annual basis.
+Added: We believe excluding these users from EoP Customer Count creates a more useful metric, as we view the Planet Insights Platform starter packages as entry points for smaller accounts, leading to broader awareness of our solutions throughout their networks and organizations.
We believe EoP Customer Count is a useful metric for investors and management to track as it is an important indicator of the broader adoption of our platform and is a measure of our success in growing our market presence and penetration.
Management applies judgment as to which customers are deemed to have an active contract in a period, as well as whether a customer is a distinct entity that uses our data or services.
−Removed: The EoP Customer Count increased to 1,018 as of January 31, 2024, as compared to 882 as of January 31, 2023.
−Removed: The increase was primarily attributable to the increased demand for our data.
+Added: The EoP Customer Count decreased to 976 as of January 31, 2025, as compared to 1,018 as of January 31, 2024.
+Added: The decrease was primarily attributable to an increased focus on larger customers.
Percent of Recurring ACV
2 unchanged sentences
Percent of Recurring ACV is the portion of the total EoP ACV Book of Business that is recurring in nature.
−Removed: We define ACV Book of Business as the sum of the ACV of all contracts that are active on the last day of the period pursuant to the effective dates and end dates of such contracts, excluding customers that are exclusively Sentinel Hub self-service paying users.
−Removed: We define Percent of Recurring ACV as the dollar value of all data subscription contracts and the committed portion of usage-based contracts (excluding customers that are exclusively Sentinel Hub self-service paying users) divided by the total dollar value of all contracts in our ACV Book of Business at a specific point in time.
+Added: We define ACV Book of Business as the sum of the ACV of all contracts that are active on the last day of the period pursuant to the effective dates and end dates of such contracts, excluding customers that are exclusively Planet Insights Platform (which has integrated the former Sentinel Hub platform) self-service paying users, as well as the value of any satellite services contracts.
+Added: We define Percent of Recurring ACV as the dollar value of all data subscription contracts and the committed portion of usage-based contracts (excluding customers that are exclusively Planet Insights Platform self-service paying users) divided by the total dollar value of all contracts in our EoP ACV Book of Business.
We believe Percent of Recurring ACV is useful to investors to better understand how much of our revenue is from customers that have the potential to renew their contracts over multiple years rather than being one-time in nature.
We track Percent of Recurring ACV to inform estimates for the future revenue growth potential of our business and improve the predictability of our financial results.
−Removed: There are no significant estimates underlying management’s calculation of Percent of Recurring ACV, but management applies judgment as to which customers have an active contract at a period end for the purpose of determining ACV Book of Business, which is used as part of the calculation of Percent of Recurring ACV.
−Removed: Percent of Recurring ACV decreased to 93% for the fiscal year ended January 31, 2024, as compared to 94% for the fiscal year ended January 31, 2023.
+Added: There are no significant estimates underlying management’s calculation of Percent of Recurring ACV, but management applies judgment as to which customers have an active contract at a period end for the purpose of determining EoP ACV Book of Business, which is used as part of the calculation of Percent of Recurring ACV.
+Added: Percent of Recurring ACV increased to 97% for the fiscal year ended January 31, 2025, as compared to 93% for the fiscal year ended January 31, 2024.
+Added: The increase was primarily attributable to demand of data subscription and usage-based contracts from large government customers.
Capital Expenditures as a Percentage of Revenue
9 unchanged sentences
Capital Expenditures as a Percentage of Revenue increased to 20% for the fiscal year ended January 31, 2025, as compared to 19% for the fiscal year ended January 31, 2024.
−Removed: The increase in Capital Expenditures as a Percentage of Revenue was primarily attributable to an increase in capitalized labor and material related to the build of our next generation high resolution Pelican satellites and medium resolution satellites.
+Added: The increase in Capital Expenditures as a Percentage of Revenue was primarily attributable to an increase in capitalized labor and material related to the build of our next generation high resolution Pelican satellites, our hyperspectral imaging Tanager satellites and our medium resolution satellites.
Components of Results of Operations
We derive revenue principally from licensing rights to use our imagery that is delivered digitally through our online platform in addition to providing related services.
−Removed: Imagery licensing agreements vary by contract, but generally have annual or multi-year contractual terms.
+Added: Imagery licensing agreements vary by contract, but generally have
+Added: annual or multi-year contractual terms.
The data licenses are generally purchased via a fixed price contract on a subscription or usage basis, whereby a customer pays for access to our imagery or derived imagery data, delivered by Planet or through partners, which may be downloaded over a specific period of time, or, less frequently, on a transactional basis, whereby the customer pays for individual content licenses.
−Removed: We also provide a small amount of other services to customers, including professional services such as training, analytical services, research and development services to third parties, and other value-added activities related to our imagery, data and technology.
+Added: We also provide a small amount of other services to customers, including professional services such as training, analytical services, and other value-added activities related to our imagery, data and technology.
These revenues are recognized as the services are rendered, on a proportional performance basis for fixed price contracts or ratably over the contract term for subscription professional services and analytics contracts.
4 unchanged sentences
To a lesser extent, cost of revenue includes costs from professional services, including costs paid to subcontractors, solution partners and certain third-party fees.
−Removed: We expect cost of revenue to continue to increase as we invest in our delivery organization, incorporate third-party products into our solutions and introduce future product sets that may require higher compute capacity.
−Removed: As we continue to grow our subscription revenue contracts and increase the revenue associated with our analytic
−Removed: capabilities, we anticipate further economies of scale on our satellites and other infrastructure costs as we incur lower marginal cost with each new customer we add to our platform.
+Added: We expect cost of revenue to continue to increase as we invest in our delivery organization, build and launch satellites for customers that have purchased satellite services, incorporate third-party products into our solutions and introduce future product sets that may require higher compute capacity.
+Added: As we continue to grow our subscription revenue contracts and increase the revenue associated with our analytic capabilities, we anticipate further economies of scale on our satellites and other infrastructure costs as we incur lower marginal cost with each new customer we add to our platform.
Research and Development
6 unchanged sentences
We intend to continue to invest in our software platform development, machine learning and analytic tools and applications and new satellite technologies for both the satellite fleet operations and data collection capabilities to drive incremental value to our existing customers and to enable us to expand our traction in emerging markets and with new customers.
−Removed: As a result of the foregoing, we expect research and development expenditures to increase in future periods.
+Added: As a result of the foregoing, research and development expenditures may increase in future periods.
Sales and Marketing
2 unchanged sentences
Sales and marketing expenses also include fees for professional and consulting services principally consisting of public relations and independent contractor expenses.
−Removed: Sales and marketing costs are expensed as incurred.
+Added: Sales commissions are capitalized when incurred and amortized on a straight-line basis over the period of benefit.
+Added: Other sales and marketing costs are expensed as incurred.
We intend to continue to invest in our selling and marketing capabilities in the future and may increase this expense in future periods as we look to upsell new product features and expand into new market verticals.
4 unchanged sentences
General and administrative costs are expensed as incurred.
−Removed: We expect to incur additional general and administrative expenses as a result of operating as a public company, including expenses related to compliance and reporting obligations of public companies, and increased costs for insurance, investor relations, and professional services.
−Removed: As the company grows, we expect that our general and administrative expenses will increase in future periods and vary from period to period as a percentage of revenue, but we expect to realize operating scale with respect to these expenses over time as we grow our revenue.
+Added: We expect to continue to incur additional general and administrative expenses as a result of operating as a public company, including expenses related to compliance and reporting obligations of public companies, and increased costs for insurance, investor relations, and professional services.
+Added: Our general and administrative expenses may increase in future periods and vary from period to period as a percentage of revenue, but we expect to continue to realize operating scale with respect to these expenses over time as we grow our revenue.
Interest Income
6 unchanged sentences
We expect to incur other incremental income or expense for fair value adjustments resulting from warrant liabilities that remain outstanding.
−Removed: Other Income (Expenses), net
−Removed: Other income (expenses), net, primarily consists of net gains or losses on foreign currency.
+Added: Other Income (Expense), net
+Added: Other income (expense), net, consists of net gains or losses on foreign currency and certain other non-operating income and expense items.
Provision for Income Taxes
25 unchanged sentences
Revenue increased $23.7 million, or 11%, to $244.4 million for the fiscal year ended January 31, 2025, from $220.7 million for the fiscal year ended January 31, 2024.
−Removed: The increase was primarily due to a $17.6 million increase from total customer growth worldwide, including new customers acquired from the Sinergise acquisition, and net expansion of existing customer contracts of $11.8 million.
−Removed: EoP Customer Count increased approximately 15% to 1,018 as of January 31, 2024, from 882 as of January 31, 2023.
−Removed: The increase in revenue was primarily driven by growth in the Civil Government and Defense and Intelligence customers.
+Added: The increase was primarily due to a $16.2 million increase from new customer growth and $7.5 million from net expansion of existing customer contracts.
+Added: The increase in revenue was primarily driven by growth in the Civil Government and Defense and Intelligence verticals.
Cost of Revenue
−Removed: Cost of revenue increased $10.5 million, or 11%, to $107.7 million for the fiscal year ended January 31, 2024, from $97.2 million for the fiscal year ended January 31, 2023.
−Removed: The increase was primarily due to a $5.0 million increase in hosting costs associated with an increase in archive data and growth in our customer base and a $2.1 million increase in employee-related costs.
−Removed: The increase in employee-related costs was primarily due to increased headcount and partially due to a $0.6 million severance and termination benefits charge associated with the headcount
−Removed: The increase was also partially due to a $2.4 million increase in depreciation expense.
−Removed: The increase in depreciation expense was primarily due to a $7.0 million increase resulting from changes in estimated useful lives of certain high resolution satellites during the fiscal year ended January 31, 2024 (as further discussed below), which was partially offset by a $4.1 million decrease resulting from a high resolution satellite that became fully depreciated during the fiscal year ended January 31, 2023 and a $0.5 million decrease resulting from a high resolution satellite that moved to experimental status during the fiscal year ended January 31, 2023, which resulted in depreciation expense for the satellite to be classified prospectively as research and development expense.
−Removed: The increase was also partially due to a $1.0 million increase in subcontractor costs and a $0.5 million increase in software and maintenance costs.
−Removed: These increases were partially offset by a $1.4 million decrease in stock based compensation expense, which was primarily due to a decline in expense related to earn-out shares.
+Added: Cost of revenue decreased $3.1 million, or 3%, to $104.6 million for the fiscal year ended January 31, 2025, from $107.7 million for the fiscal year ended January 31, 2024.
+Added: The decrease was driven by a $7.0 million decrease in depreciation expense primarily due to a $4.8 million decrease resulting from changes in estimated useful lives of certain high resolution satellites during the fiscal year ended January 31, 2024 (as further discussed below) and a $1.3 million decrease resulting from a high resolution satellite that moved to experimental status during the fiscal year ended January 31, 2024, which resulted in depreciation expense for the satellite to be classified prospectively as research and development expense.
+Added: The decrease was also partially due to a $2.4 million decrease in employee-related costs, primarily due to reduced headcount, and a $1.3 million decrease in hosting costs.
+Added: These decreases were partially offset by a $5.0 million increase in costs paid to solution partners and subcontractors and a $2.3 million increase in amortization expense.
During the fiscal year ended January 31, 2024, additional information specific to certain high resolution satellites became available indicating that the useful lives of these satellites will be less than originally estimated.
−Removed: The changes in estimated useful lives for these satellites were accounted for prospectively, resulting in an increase of depreciation expense of $7.0 million and an increase in basic and diluted net loss per share attributable to common stockholders of approximately $0.02 for the fiscal year ended January 31, 2024.
+Added: The changes in estimated useful lives for these satellites were accounted for prospectively, resulting in an increase of depreciation expense of $7.0 million for the fiscal year ended January 31, 2024.
Research and Development
−Removed: Research and development expenses increased $5.4 million, or 5%, to $116.3 million for the fiscal year ended January 31, 2024, from $110.9 million for the fiscal year ended January 31, 2023.
−Removed: The increase was primarily due to an increase of $20.5 million in employee-related costs, which was primarily due to increased headcount and partially due to a $3.3 million severance and termination benefits charge associated with the headcount reduction.
−Removed: The increase was also partially due to a $1.9 million non-recurring expense related to transaction bonuses paid to Sinergise employees, which was allocated from the purchase consideration we paid in connection with the Sinergise acquisition.
−Removed: The increase was also partially due to a $1.9 million increase in depreciation expense associated with satellites classified as experimental, an increase in contractor costs of $0.7 million to support various research and development initiatives, and a $0.6 million increase in software and maintenance costs.
−Removed: These increases were partially offset by a $9.5 million increase in funding recognized for our research and development arrangements, a $8.3 million decrease in stock based compensation expense, which was primarily due to a decline in expense related to earn-out shares, and a $4.6 million decrease in spacecraft hardware costs for research and development activities.
−Removed: In July 2023, projected costs related to certain of our research and development arrangements were revised down as a result of operational decisions.
−Removed: This change in estimate resulted in a $2.2 million cumulative increase of funding recognized for certain of our research and development arrangements for the fiscal year ended January 31, 2024.
+Added: Research and development expenses decreased $15.3 million, or 13%, to $101.0 million for the fiscal year ended January 31, 2025, from $116.3 million for the fiscal year ended January 31, 2024.
+Added: The decrease was primarily due to a $10.4 million decrease in purchases of material utilized for research and development activities, a $8.1 million
+Added: decrease in employee-related costs, primarily due to reduced headcount, a $7.2 million decrease in stock-based compensation expense, which was primarily due to forfeiture of awards in connection with certain employee departures and due to a decline in expense related to earnout shares.
+Added: The decrease was also partially due to a $1.9 million decrease in non-recurring expense related to transaction bonuses paid to Sinergise employees in the prior year, which was allocated from the purchase consideration we paid in connection with the Sinergise acquisition, and a $1.0 million decrease in contractor costs used to support various research and development initiatives.
+Added: These decreases were partially offset by a $7.3 million decrease in funding recognized for our research and development arrangements, a $3.0 million increase in depreciation expense associated with satellites classified as experimental, and a $2.6 million increase in launch provider costs primarily due to the launch of a satellite classified as experimental.
Sales and Marketing
−Removed: Sales and marketing expenses increased $8.3 million, or 11%, to $86.3 million, for the fiscal year ended January 31, 2024, from $78.0 million for the fiscal year ended January 31, 2023.
−Removed: The increase was primarily due to an increase of $7.7 million in employee-related costs, which was primarily due to increased headcount and partially due to a $1.9 million severance and termination benefits charge associated with the headcount reduction.
−Removed: The increase was also partially due to a $3.7 million increase in marketing expenses driven by increased events and a $2.5 million increase in sales commissions expense.
−Removed: These increases were partially offset by a $3.5 million decrease in stock based compensation expense, which was primarily due to a decline in expense related to earnout shares, and a $2.5 million decrease in professional and consulting expenses.
+Added: Sales and marketing expenses decreased $8.6 million, or 10%, to $77.7 million, for the fiscal year ended January 31, 2025, from $86.3 million for the fiscal year ended January 31, 2024.
+Added: The decrease was primarily due to a $6.5 million decrease in employee-related costs due to reduced headcount.
+Added: The decrease was also partially due to a $1.5 million decrease in stock-based compensation expense, a $1.3 million decrease in sales commissions expense, a $0.9 million decrease in employee travel and entertainment costs, and a $0.8 million decrease in marketing expenses driven by decreased events.
+Added: These decreases were partially offset by a $2.6 million increase in severance and termination benefits charges associated with the headcount reductions.
General and Administrative
General and administrative expenses decreased $2.9 million, or 4%, to $77.1 million for the fiscal year ended January 31, 2025, from $80.1 million for the fiscal year ended January 31, 2024.
−Removed: The decrease was primarily due to a $5.2 million decrease in stock based compensation expense, which was primarily due to a decline in expense related to earn-out shares.
−Removed: The decrease was also partially due to a $2.0 million decrease in directors’ and officers’ insurance costs and a $1.0 million decrease in depreciation and amortization, primarily related to our office facilities.
−Removed: These decreases were partially offset by a $5.0 million increase in employee-related costs, primarily as a result of increased headcount and partially due to a $1.6 million severance and termination benefits charge associated with the headcount reduction.
−Removed: The decreases were also partially offset due to a $1.1 million increase in software costs and a $1.0 million increase in rent costs related to new facility leases.
+Added: The decrease was primarily due to a $1.7 million decrease in employee-related costs due to reduced headcount.
+Added: The decrease was also partially due to a $1.3 million decrease in our allowance for expected credit losses for accounts receivable, a $1.0 million decrease in insurance costs, and a $0.8 million decrease in consulting costs.
+Added: These decreases were partially offset by a $1.6 million increase in expense associated with the revaluation of the contingent consideration liability for the Sinergise acquisition customer consent escrow and a $0.6 million increase in legal expenses.
Interest Income
−Removed: Interest income increased $7.7 million, to $15.4 million for the fiscal year ended January 31, 2024, from $7.7 million for the fiscal year ended January 31, 2023.
−Removed: The increase was primarily due to our short-term investment balances and an increase in interest rates.
+Added: Interest income decreased $5.2 million, to $10.3 million for the fiscal year ended January 31, 2025, from $15.4 million for the fiscal year ended January 31, 2024.
+Added: The decrease was primarily due to a decrease in our short-term investment balances.
Change in Fair Value of Warrant Liabilities
1 unchanged sentence
Other Income (Expense), net
−Removed: Other income (expense), net of $0.9 million for the fiscal year ended January 31, 2024 primarily reflects the recognition of an insurance claim recovery of $0.8 million associated with a high resolution satellite.
−Removed: Other income (expense), net of $0.3 million for the fiscal year ended January 31, 2023 primarily reflects realized and unrealized foreign currency exchange gains and losses.
+Added: Other income (expense), net of $0.2 million for the fiscal year ended January 31, 2025 includes the derecognition of a $1.3 million liability for which settlement is not considered probable, partially offset by $0.8 million of interest expense associated with a customer contract that contains a significant financing component.
+Added: Other income (expense), net of $0.9 million for the fiscal year ended January 31, 2024 includes the recognition of an insurance claim recovery of $0.8 million associated with a high resolution satellite.
Provision for Income Taxes
−Removed: Provision for income taxes was $0.8 million for both of the fiscal years ended January 31, 2024 and 2023.
+Added: Provision for income taxes increased $1.6 million, to $2.5 million for the fiscal year ended January 31, 2025, from $0.8 million for the fiscal year ended January 31, 2024.
For the fiscal years ended January 31, 2025 and 2024, the income tax expense was primarily driven by the current tax on foreign earnings.
4 unchanged sentences
We include these non-GAAP financial measures because they are used by management to evaluate our core operating performance and trends and to make strategic decisions regarding the allocation of capital and new investments.
−Removed: We define and calculate Non-GAAP Gross Profit as gross profit adjusted for stock-based compensation, amortization of acquired intangible assets classified as cost of revenue, restructuring costs, and employee transaction bonuses in connection with the Sinergise business combination.
+Added: We define and calculate Non-GAAP Gross Profit as gross profit adjusted for stock-based compensation, amortization of acquired intangible assets, restructuring costs, and employee transaction bonuses in connection with the Sinergise business combination.
We define Non-GAAP Gross Margin as Non-GAAP Gross Profit divided by revenue.
−Removed: We define and calculate Adjusted EBITDA as net income (loss) before the impact of interest income and expense, income tax expense and depreciation and amortization, and further adjusted for the following items:
−Removed: stock-based compensation, change in fair value of warrant liabilities, non-operating income and expenses such as foreign currency exchange gain or loss, restructuring costs, and employee transaction bonuses in connection with the Sinergise business combination.
+Added: We define and calculate Adjusted EBITDA as net income (loss) before the impact of interest income and expense, income tax provision and depreciation and amortization, and further adjusted for the following items:
+Added: stock-based compensation, change in fair value of warrant liabilities, other income (expense), net, restructuring costs, certain litigation expenses, and employee transaction bonuses in connection with the Sinergise business combination.
We present Non-GAAP Gross Profit, Non-GAAP Gross Margin and Adjusted EBITDA because we believe these measures are frequently used by analysts, investors and other interested parties to evaluate companies in our industry and facilitates comparisons on a consistent basis across reporting periods.
Further, we believe these measures are helpful in highlighting trends in our operating results because they exclude items that are not indicative of our core operating performance.
−Removed: We define and calculate Backlog as remaining performance obligations plus the cancellable portion of the contract value for contracts that provide the customer with a right to terminate for convenience without incurring a substantive termination penalty and written orders where funding has not been appropriated.
+Added: We define and calculate Backlog as remaining performance obligations plus the cancelable portion of the contract value for contracts that provide the customer with a right to terminate for convenience without incurring a substantive termination penalty and written orders where funding has not been appropriated.
Backlog does not include unexercised contract options.
20 unchanged sentences
Gross Profit $ 139,725 $ 112,950
−Removed: Cost of revenue—Stock-based compensation 3,636 5,119
+Added: Stock-based compensation 3,467 3,636
Amortization of acquired intangible assets 3,003 2,460
5 unchanged sentences
Non-GAAP Gross Margin 60 % 54 %
−Removed: (1) As part of the headcount reduction plan announced in August 2023, we recognized $0.6 million of severance and other employee costs within cost of revenue for the fiscal year ended January 31, 2024.
+Added: (1) As part of the 2024 headcount reduction, we recognized $1.3 million of severance and other employee-related costs within cost of revenue for the fiscal year ended January 31, 2025.
For the fiscal year ended January 31, 2025, the restructuring related stock-based compensation benefit recognized within cost of revenue of $0.2 million is included on its respective line item.
−Removed: Refer to Note 8 to our consolidated financial statements in Part 8 of this Form 10-K.
−Removed: (2) Certain employees of Sinergise, who became employees of Planet, were paid cash transaction bonuses in connection with the closing of the Sinergise acquisition.
−Removed: The cost of the transaction bonuses was allocated from the purchase consideration we paid for the acquisition.
−Removed: Refer to Note 6 to our consolidated financial statements in Part 8 of this Form 10-K.
+Added: As part of the 2023 headcount reduction, we recognized $0.6 million of severance and other employee-related costs within cost of revenue for the fiscal year ended January 31, 2024.
+Added: For the fiscal year ended January 31, 2024, the restructuring related stock-based compensation benefit recognized within cost of revenue of $0.1 million is included on its respective line item.
+Added: Refer to Note 7 “ Restructuring ” to our consolidated financial statements in Item 8 of this Form 10-K.
+Added: (2) Certain employees of Sinergise, which became employees of Planet, were paid cash transaction bonuses in connection with the closing of the Sinergise acquisition.
+Added: The cost of the transaction bonuses was allocated to cost of revenue from the purchase consideration we paid for the acquisition.
+Added: Refer to Note 5 “ Acquisitions ” to our consolidated financial statements in Item 8 of this Form 10-K.
Adjusted EBITDA
13 unchanged sentences
Sinergise business combination (2)
−Removed: Other (income) expense (931) (330)
+Added: Certain litigation expenses (3)
+Added: Other income, net (245) (931)
Adjusted EBITDA $ (10,627) $ (55,284)
−Removed: (1) As part of the headcount reduction plan announced in August 2023, we recognized $7.4 million of severance and other employee-related costs for the fiscal year ended January 31, 2024.
−Removed: For the fiscal year ended January 31, 2024, the restructuring related stock-based compensation benefit of $1.5 million is included on its respective line item.
−Removed: Refer to Note 8 to our consolidated financial statements in Part 8 of this Form 10-K.
−Removed: (2) Certain employees of Sinergise, who became employees of Planet, were paid cash transaction bonuses in connection with the closing of the Sinergise acquisition.
−Removed: The cost of the transaction bonuses was allocated from the purchase consideration we paid for the acquisition.
−Removed: Refer to Note 6 to our consolidated financial statements in Part 8 of this Form 10-K.
+Added: (1) As part of the 2024 headcount reduction, we recognized $10.6 million of severance and other employee-related costs for the fiscal year ended January 31, 2025.
+Added: For the fiscal year ended January 31, 2025, the restructuring related stock-based compensation benefit recognized of $1.4 million is included on its respective line item.
+Added: As part of the 2023 headcount reduction, we recognized $7.4 million of severance and other employee-related costs for the fiscal year ended January 31, 2024.
+Added: For the fiscal year ended January 31, 2024, the restructuring related stock-based compensation benefit recognized of $1.5 million is
+Added: included on its respective line item.
+Added: Refer to Note 7 “ Restructuring ” to our consolidated financial statements in Item 8 of this Form 10-K.
+Added: (2) Certain employees of Sinergise, which became employees of Planet, were paid cash transaction bonuses in connection with the closing of the Sinergise acquisition.
+Added: The cost of the transaction bonuses was allocated to operating expense from the purchase consideration we paid for the acquisition.
+Added: Refer to Note 5 “ Acquisitions ” to our consolidated financial statements in Item 8 of this Form 10-K.
+Added: (3) Expenses relating to the Delaware class action lawsuit.
+Added: Refer to Note 10 “ Commitments and Contingencies ” to our consolidated financial statements in Item 8 of this Form 10-K.
There are a number of limitations related to the use of Adjusted EBITDA, including:
2 unchanged sentences
• Adjusted EBITDA does not reflect interest expense, or the cash requirements necessary to service interest or principal payments on debt, which reduces cash available to us;
−Removed: • Adjusted EBITDA does not include severance payments made in conjunction with a reduction in headcount announced in August 2023, which reduces cash available to us;
+Added: • Adjusted EBITDA does not include severance expense in conjunction with restructuring events, which reduces cash available to us;
+Added: • Adjusted EBITDA does not reflect certain litigation expenses, consisting of legal fees for a specific proceeding, which reduces cash available to us;
• Adjusted EBITDA does not reflect income tax expense that reduces cash available to us;
4 unchanged sentences
Remaining performance obligations $ 412,829 $ 132,571
−Removed: $ 132,571 $ 151,976
−Removed: Cancellable amount of contract value
−Removed: 109,821 127,667
−Removed: $ 242,392 $ 279,643
+Added: Cancelable amount of contract value 90,920 109,821
+Added: Backlog $ 503,749 $ 242,392
For remaining performance obligations as of January 31, 2025, the Company expects to recognize approximately 37% over the next 12 months, approximately 70% over the next 24 months, and the remainder thereafter.
17 unchanged sentences
If needed financing is not available, or if the terms of financing are less desirable than we expect, we may be forced to decrease our level of investment in software and market expansion efforts or to scale back our existing operations, which could have an adverse impact on our business and financial prospects.
−Removed: As of January 31, 2024, our principal contractual obligations and commitments include lease obligations for real estate and ground stations, purchase commitments for future satellite launch services, and minimum purchase commitments for hosting services from Google, LLC.
+Added: As of January 31, 2025, our principal contractual obligations and commitments include lease obligations for real estate and ground stations and minimum purchase commitments for hosting services from Google, LLC.
Refer to Notes 8, 10, and 13 to our consolidated financial statements in Part 8 of this Form 10-K for more information regarding these cash requirements.
2 unchanged sentences
The following tables present a summary of cash flows from operating, investing and financing activities for the following comparative periods.
−Removed: For additional detail, please see the consolidated statements of cash flows as presented within the consolidated financial statements.
+Added: For additional detail, refer to the consolidated statements of cash flows as presented within the consolidated financial statements.
Year Ended January 31,
6 unchanged sentences
Net cash used in operating activities for the fiscal year ended January 31, 2025, primarily consisted of the net loss of $123.2 million, adjusted for non-cash items and changes in operating assets and liabilities.
−Removed: Non-cash items primarily included depreciation and amortization expense of $47.6 million and stock-based compensation expense of $57.1 million, which were partially offset by a change in fair value of warrant liabilities of $13.7 million.
+Added: Non-cash items primarily included stock-based compensation expense of $48.5 million, depreciation and amortization expense of $45.6 million, and a change in fair value of warrant liabilities of $15.1 million.
The net change in operating assets and liabilities primarily consisted of a $13.3 million decrease in accounts payable, accrued and other liabilities and a $12.0 million increase in accounts receivable, which were partially offset by a $15.6 million increase in deferred revenue and a $8.4 million decrease in prepaid expenses and other assets.
Net cash used in operating activities for the fiscal year ended January 31, 2024, primarily consisted of the net loss of $140.5 million, adjusted for non-cash items and changes in operating assets and liabilities.
−Removed: Non-cash items primarily included depreciation and amortization expense of $43.3 million and stock-based compensation expense of $75.5 million, which were partially offset by a change in fair value of warrant liabilities and convertible notes of $6.6 million.
−Removed: The net change in operating assets and liabilities primarily consisted of a $14.4 million decrease in deferred revenue, a $10.1 million increase in prepaid expenses and other assets, and a $3.0 million decrease in accounts payable, accrued and other liabilities, which was partially offset by a $6.3 million decrease in accounts receivable.
−Removed: Net cash used in investing activities
+Added: Non-cash items primarily included depreciation and amortization expense of $47.6 million and stock-based compensation expense of $57.1 million, which were partially offset by a change in fair value of warrant liabilities of $13.7 million.
+Added: The net change in operating assets and liabilities primarily consisted of a $25.0 million decrease in accounts payable, accrued and other liabilities and a $2.7 million increase in accounts receivable, which were partially offset by a $22.2 million increase in deferred revenue and a $10.5 million decrease in prepaid expenses and other assets.
+Added: Net cash provided by (used in) investing activities
+Added: Net cash provided by investing activities for the fiscal year ended January 31, 2025, consisted of sales of available-for-sale securities of $192.5 million and maturities of available-for-sale securities of $61.4 million, partially offset by purchases of available-for-sale securities of $140.2 million, purchases of property and equipment of $44.3 million, and capitalized internal-use software costs of $5.3 million.
+Added: Cash used in investing activities also included $4.8 million for the purchase of licensed imagery.
Net cash used in investing activities for the fiscal year ended January 31, 2024, consisted of purchases of available-for-sale securities of $189.1 million, purchases of property and equipment of $38.0 million, and capitalized internal-use software costs of $4.4 million, partially offset by maturities of available-for-sale securities of $161.3 million and sales of available-for-sale securities of $45.6 million.
Cash used in investing activities also included $7.5 million for the acquisition of Sinergise in August 2023.
−Removed: Net cash used in investing activities for the fiscal year ended January 31, 2023, consisted of purchases of available-for-sale securities of $280.3 million, purchases of property and equipment of $10.4 million, and capitalized internal-use software costs of $2.3 million, partially offset by maturities of available-for-sale securities of $55.2 million.
−Removed: Cash used in investing activities also included $3.8 million, net of cash acquired, for the acquisition of Salo Sciences in January 2023.
−Removed: Net cash provided by (used in) financing activities
−Removed: Net cash used in financing activities for the fiscal year ended January 31, 2024, primarily consisted of payment of tax withholding obligations for vesting of restricted stock units of $9.0 million, which was partially offset by proceeds from the exercise of common stock options of $7.4 million.
−Removed: Net cash provided by financing activities for the fiscal year ended January 31, 2023, primarily consisted of proceeds from the exercise of common stock options of $14.7 million, which was partially offset by payment of tax withholding obligations for vesting of restricted stock units of $6.3 million.
+Added: Net cash used in financing activities
+Added: Net cash used in financing activities for the fiscal year ended January 31, 2025, primarily consisted of payments for withholding taxes related to the net share settlement of equity awards of $11.9 million and payments of contingent consideration for business acquisitions of $8.8 million, which was partially offset by proceeds from the exercise of common stock options of $4.4 million.
+Added: Net cash used in financing activities for the fiscal year ended January 31, 2024, primarily consisted of payments for withholding taxes related to the net share settlement of equity awards of $9.0 million, which was partially offset by proceeds from the exercise of common stock options of $7.4 million.
Critical Accounting Policies and Estimates
5 unchanged sentences
Revenue Recognition
−Removed: We recognize revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (“Topic 606”).
−Removed: Under Topic 606, we recognize revenue under the core principle to depict the transfer of control to our customers in an amount reflecting the consideration to which we expect to be entitled.
−Removed: In order to achieve that core principle, we apply the following five-step approach:
−Removed: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when a performance obligation is satisfied.
We derive our revenue principally from licensing rights to use imagery that is delivered digitally through our online platform in addition to providing related services.
7 unchanged sentences
To identify the performance obligations, we consider all of the product offerings promised in the contract.
+Added: When our contracts with customers contain more than a single performance obligation, management allocates the total contract consideration to each performance obligation on a relative SSP basis.
+Added: The SSP is the price at which we would sell a promised product or service separately to a customer.
+Added: Judgment is required to determine the SSP for each distinct performance obligation.
+Added: We determine the SSP by considering our overall pricing practices and market conditions, including our discounting practices, the size and volume of our transactions, the customer demographic, price lists, historical sales, contract prices and customer relationships.
Data licensing arrangements generally provide customers with the right to access imagery through our platform, download content on a limited or unlimited basis over the contractual period depending on the terms of the applicable contract, or provide both the right to access imagery and download content.
2 unchanged sentences
At contract inception, existing or archived imagery is available for download by the customer.
−Removed: The existing or archived imagery has significant standalone functionality and is not updated once licensed to a particular customer.
−Removed: As such, the portion of the contract consideration related to the download license of existing or archive imagery content is recognized as revenue at the commencement of the contract when control of the imagery is transferred, and the imagery is available for download by the customer.
+Added: The existing or archived imagery ha s significant st andalone functionality and is not updated once licensed to a particular customer.
+Added: As su ch, the portion of the contract consideration related to the download license of existing or archive imagery content, which is generally not significant, is recognized as revenue at the commencement of the contract when control of the imagery is transferred, and the im agery is available for download by the customer.
The portion of the contractual consideration related to the download of monitoring imagery content is recognized over the term of the contract utilizing a usage-based output measure of progress based on the download capacity specified in the contract.
To the extent the number of downloads of the specified imagery content is unlimited, the contractual consideration related to downloads is recognized ratably on a straight-line basis over the term of the contract.
−Removed: When our contracts with customers contain more than a single performance obligation, management allocates the total contract consideration to each performance obligation on a relative SSP basis.
−Removed: The SSP is the price at which we would sell a promised product or service separately to a customer.
−Removed: Judgment is required to determine the SSP for each distinct performance obligation.
−Removed: We determine the SSP by considering our overall pricing practices and market conditions, including our discounting practices, the size and volume of our transactions, the customer demographic, price lists, historical sales, contract prices and customer relationships.
−Removed: We also provide other services to customers, including professional services such as training, analytical services, research and development services to third parties, and other value-added activities related to imagery products.
−Removed: These revenues are recognized as the services are rendered, on a proportional performance basis for fixed price contracts or ratably over the contract term for subscription professional services contracts.
−Removed: Training revenues are recognized as the services are performed.
−Removed: We recognize revenue on a gross basis.
−Removed: We are the principal in the transaction as we are the party responsible for the performance obligation and we control the product or service before transferring it to the customer.
The transaction price is the total amount of consideration that we expect to be entitled to in exchange for the product offerings in a contract.
The prices of imagery licensing and other services are generally fixed at contract inception and therefore, our contracts do not contain a significant amount of variable consideration.
−Removed: From time to time, we may enter into contracts with our customers that provide a form of variable consideration, including a revenue share arrangement.
−Removed: For these arrangements, we estimate the variable consideration at the contract inception based on the most likely amount in a range of possible outcomes.
−Removed: The estimate of variable consideration is reassessed on a quarterly basis.
−Removed: We typically bill in advance either quarterly or annually for contracts with terms of one year or longer.
−Removed: We also have a small number of large contracts that have required payment terms that are monthly or quarterly in arrears.
−Removed: Amounts that have been invoiced are recorded in accounts receivable and in deferred revenue or revenue, depending on whether the underlying performance obligations have been satisfied.
−Removed: Advance payments from customers have been categorized as current or non-current deferred revenue based on the expected performance date.
−Removed: We applied the practical expedient in Topic 606 and did not evaluate contracts of one year or less for the existence of a significant financing component.
−Removed: The financing component of multi-year contracts was not significant.
−Removed: Stock-Based Compensation
−Removed: We account for stock-based compensation expense in accordance with the fair value recognition and measurement provisions of U.S.
−Removed: GAAP, which require compensation cost for the grant-date fair value of stock-based awards to be recognized over the requisite service period.
−Removed: We determine the fair value of stock-based awards granted or modified, using appropriate valuation techniques.
−Removed: We recognize forfeitures as they occur.
−Removed: We use the Black-Scholes option pricing model to determine the fair value of the stock options granted.
−Removed: The Black-Scholes option pricing model requires the input of subjective assumptions, including the fair value of the underlying common stock, the expected term of the option, the expected volatility of the price of the common stock, risk-free interest rates, and the expected dividend yield of the common stock.
−Removed: The assumptions used to determine the fair value of the option awards represent management’s best estimates.
−Removed: These estimates involve inherent uncertainties and the application of management’s judgment.
−Removed: We record stock-based compensation expense for stock options on a straight-line basis over the requisite service period, which is generally four years.
−Removed: The fair value of Restricted Stock Units (“RSUs”) is the fair value of the underlying stock at the measurement date.
−Removed: For RSU awards that are subject only to a time-based service vesting requirement, we record stock-based compensation expense on a straight-line basis over the requisite service period, which is generally four years.
−Removed: For RSU awards that are subject to both time-based service and performance condition (including liquidity event) vesting requirements, no expense is recognized until it is probable that the vesting criteria would be met.
−Removed: Stock-based compensation expense for RSU awards with performance and other vesting criteria is recognized as expense under an accelerated graded vesting model.
−Removed: Pursuant to the Merger Agreement for the Business Combination, Former Planet equity holders, including Former Planet equity award holders, have the right to receive earn-out consideration (the “Earn-out Shares”).
−Removed: The Earn-out Shares may be earned in four equal tranches (i) when the closing price of our Class A common stock equals or exceeds $15.00, $17.00, $19.00 and $21.00, over any 20 trading days within any 30 day trading period prior to December 7, 2026, or (ii) we consummate a change of control transaction prior to December 7, 2026 that entitles our stockholders to receive a per share consideration of at least $15.00, $17.00, $19.00 and $21.00.
−Removed: Any right to Earn-out Shares that remains unvested on the first business day after five years from the closing of the Business Combination will be forfeited without any further consideration.
−Removed: The Earn-out Shares allocated to Former Planet equity award holders are accounted for as stock-based compensation pursuant to ASC 718, Compensation—Stock Compensation, because service must be provided through each market condition vesting requirement.
−Removed: The fair value of the Earn-out Shares allocated to Former Planet equity award holders
−Removed: was determined upon the close of the Business Combination which is recognized as stock-based compensation expense over the requisite service period.
−Removed: Compensation expense for awards with market conditions is not reversed if the market condition is not met.
−Removed: The fair value of the Earn-out Shares was estimated using a model based on multiple stock price paths developed through the use of a Monte Carlo simulation that incorporates into the valuation the possibility that the market condition targets may not be satisfied.
−Removed: This valuation model requires inputs such as the fair value of our Class A common stock, the risk-free interest rate, expected term, expected dividend yield and expected volatility.
−Removed: The fair value of our Class A common stock is the closing stock price on the NYSE as of the measurement date.
−Removed: The risk-free interest rate assumption is determined by using the U.S.
−Removed: Treasury rates of the same period as the expected term of the Earn-out Shares, which is 5 years from the closing of the Business Combination.
−Removed: Our volatility was derived from several publicly traded peer companies.
−Removed: We had historically been a private company and lacked sufficient company-specific historical and implied volatility information.
−Removed: Therefore, we estimated our expected stock volatility based on the historical volatility of a publicly traded set of peer companies.
−Removed: The requisite service period for each of the four vesting tranches for the Earn-out Shares was derived from the median time to vest for each tranche utilizing the same simulation model that produced the fair value estimate.
−Removed: Public and Private Placement Warrant Liabilities
−Removed: In connection with dMY IV’s initial public offering, which occurred on March 9, 2021, dMY IV issued 34,500,000 units, consisting of one share of Class A common stock of dMY IV and one-fifth of one redeemable warrant, at a price of $10.00 per unit (the “Public Warrants”).
−Removed: Simultaneously with the closing of its initial public offering, dMY IV completed the private sale of 5,933,333 warrants to dMY Sponsor IV, LLC (the “dMY Sponsor”) at a purchase price of $1.50 per warrant (the “Private Placement Warrants”).
−Removed: Additionally, pursuant to a lock-up agreement entered into with the dMY Sponsor in connection with the Business Combination, 2,966,667 of the Private Placement Warrants are subject to vesting conditions (the “Private Placement Vesting Warrants”).
−Removed: As of January 31, 2024, the Company had 6,899,982 Public Warrants and 5,933,333 Private Placement Warrants, including 2,966,667 Private Placement Vesting Warrants, outstanding.
−Removed: The Public Warrants are traded on the NYSE and are recorded at fair value using the closing price as of the measurement date.
−Removed: The fair value of the Private Placement Warrants (excluding the Private Placement Vesting Warrants) are estimated using the Black-Scholes option pricing model.
−Removed: Due to the market condition vesting requirements, the fair value of the Private Placement Vesting Warrants are estimated using a model based on multiple stock price paths developed through the use of a Monte Carlo simulation that incorporates into the valuation the possibility that the market condition targets may not be satisfied.
−Removed: These valuation models require inputs such as the fair value of our Class A common stock, the risk-free interest rate, expected term, expected dividend yield and expected volatility.
−Removed: The fair value of our Class A common stock is the closing stock price on the NYSE as of the measurement date.
−Removed: The risk-free interest rate assumption is determined by using the U.S.
−Removed: Treasury rates of the same period as the expected term of the Private Placement Warrants, which is five years from the closing of the Business Combination.
−Removed: We had historically been a private company and lacked sufficient company-specific historical and implied volatility information.
−Removed: Therefore, we estimate our expected stock volatility based on the historical volatility of a publicly traded set of peer companies.
Property and Equipment and Long-lived Assets
12 unchanged sentences
The changes in estimated useful lives for these satellites were accounted for prospectively, resulting in an increase of depreciation expense of $7.0 million for the fiscal year ended January 31, 2024.
−Removed: Additionally, the carrying amount of long-lived assets to be held and used in the business are reviewed for impairment annually or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
+Added: The carrying amount of long-lived assets to be held and used in the business are reviewed for impairment annually or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
Impairment indicators include, among other conditions, cash flow deficits, historic or anticipated declines in revenue or operating profit or material adverse changes in the business climate that indicate that the carrying amount of an asset may be impaired.
1 unchanged sentence
This evaluation is performed at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities, or an asset group.
−Removed: If the carrying amount of the asset or asset group is not recoverable, the impairment to be recognized is measured by the amount by which the carrying amount of each long-lived asset or asset group exceeds the fair value of the asset or asset group.
−Removed: No events or changes in circumstances indicated the carrying amounts of our long-lived assets may not be recoverable during the fiscal years ended January 31, 2024 and 2023.
−Removed: Business Combinations
−Removed: We account for business combinations using the acquisition accounting method, which requires us to determine the fair value of net assets acquired, including intangible assets and related goodwill.
−Removed: We allocate the fair value of purchase consideration to the assets acquired, liabilities assumed, and non-controlling interests in the acquired entity based on their fair values at the acquisition date.
−Removed: Determining the fair value of assets acquired and liabilities assumed requires our judgment and involves the use of significant estimates, including projections of future cash inflows and outflows, discount rates, asset lives and market multiples.
−Removed: There are different valuation models for each component, the selection of which requires judgment.
−Removed: These determinations will affect the amount of amortization expense recognized in future periods.
−Removed: We base our fair value estimates on assumptions we believe are reasonable but recognize that the assumptions are inherently uncertain.
−Removed: Acquisition-related costs are accounted for as expenses in the period in which they are incurred.
−Removed: The operating results of the acquired business are reflected in our consolidated financial statements as of the acquisition date.
−Removed: Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in a business combination.
−Removed: Goodwill is not subject to amortization and is tested for impairment at least annually, during the fourth quarter of each fiscal year or more frequently if events or circumstances indicate that the asset might be impaired.
−Removed: In assessing goodwill for impairment, we first assess qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test.
−Removed: In the qualitative assessment, we consider factors including economic conditions, industry and market conditions and developments, overall financial performance and other relevant entity-specific events in determining whether it is more likely than not that the fair value of the reporting unit is less than the carrying amount.
−Removed: Should we conclude that it is more likely than not that the recorded goodwill amounts have been impaired, or if we elect to bypass the optional qualitative assessment as provided for under U.S.
−Removed: GAAP, we proceed with performing a quantitative impairment test.
−Removed: Goodwill impairment exists when a reporting unit’s carrying value exceeds its fair value.
−Removed: Significant judgment is applied when goodwill is assessed for impairment.
−Removed: No goodwill impairment was recorded during the fiscal years ended January 31, 2024, 2023 and 2022.
−Removed: We are subject to income taxes in the United States and various foreign jurisdictions.
−Removed: We account for income taxes using the asset and liability method whereby deferred income taxes are recognized for the tax consequences of temporary differences between the financial statement carrying amounts and the tax basis of the assets and liabilities.
−Removed: The measurement of deferred tax assets is reduced, if necessary, by a valuation allowance for any tax benefits for which future realization is uncertain.
−Removed: In evaluating our ability to recover our deferred tax assets, we evaluate all available positive and negative evidence such as past operating results, future reversals of existing deferred tax liabilities, projected future taxable income, as well as prudent and feasible tax planning strategies.
−Removed: Based on management’s assessment that the realization of any future benefit from our deferred tax assets cannot be sufficiently assured, we recorded a valuation allowance against these deferred tax assets.
−Removed: Management’s estimates of future profitability and future changes in ownership may materially impact our valuation allowance and our net deferred tax position.
−Removed: Judgment is required in evaluating our uncertain tax positions and determining our provision for income taxes.
−Removed: We may recognize a tax benefit only if it is more likely than not the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position.
−Removed: The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement.
+Added: If the carrying amount of the asset or
+Added: asset group is not recoverable, the impairment to be recognized is measured by the amount by which the carrying amount of each long-lived asset or asset group exceeds the fair value of the asset or asset group.
+Added: There were no material impairment charges recorded for long-lived assets during the fiscal years ended January 31, 2025, 2024 and 2023.
Recent Accounting Pronouncements
1 unchanged sentence
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.