Planet Reports Financial Results for Third Quarter of Fiscal

Planet Reports Financial Results for Third Quarter of Fiscal Year 2025

PLANET CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(In thousands)	October 31, 2024			January 31, 2024
Assets
Current assets
Cash and cash equivalents	$	138,969		$	83,866
Restricted cash and cash equivalents, current		6,525			8,360
Short-term investments		103,255			215,041
Accounts receivable, net		38,853			43,320
Prepaid expenses and other current assets		13,992			19,564
Total current assets		301,594			370,151
Property and equipment, net		116,920			113,429
Capitalized internal-use software, net		18,259			14,973
Goodwill		137,411			136,256
Intangible assets, net		29,231			32,448
Restricted cash and cash equivalents, non-current		4,437			9,972
Operating lease right-of-use assets		20,829			22,339
Other non-current assets		2,083			2,429
Total assets	$	630,764		$	701,997
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	3,572		$	2,601
Accrued and other current liabilities		43,670			44,779
Deferred revenue		66,462			72,327
Liability from early exercise of stock options		6,275			8,964
Operating lease liabilities, current		9,105			7,978
Total current liabilities		129,084			136,649
Deferred revenue		11,230			5,293
Deferred hosting costs		6,665			7,101
Public and private placement warrant liabilities		1,835			2,961
Operating lease liabilities, non-current		13,819			16,952
Contingent consideration		2,871			5,885
Other non-current liabilities		655			9,138
Total liabilities		166,159			183,979
Stockholders’ equity
Common stock		28			28
Additional paid-in capital		1,631,077			1,596,201
Accumulated other comprehensive income		1,347			1,594
Accumulated deficit		(1,167,847	)		(1,079,805	)
Total stockholders’ equity		464,605			518,018
Total liabilities and stockholders’ equity	$	630,764		$	701,997

PLANET CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

	Three Months Ended October 31,						Nine Months Ended October 31,
(In thousands, except share and per share amounts)		2024			2023			2024			2023
Revenue	$	61,266		$	55,380		$	182,798		$	161,844
Cost of revenue		23,749			29,350			81,288			81,375
Gross profit		37,517			26,030			101,510			80,469
Operating expenses
Research and development		25,216			33,002			78,055			87,929
Sales and marketing		16,795			20,774			62,013			66,209
General and administrative		18,114			20,112			58,198			62,161
Total operating expenses		60,125			73,888			198,266			216,299
Loss from operations		(22,608	)		(47,858	)		(96,756	)		(135,830	)
Interest income		2,414			3,445			8,292			11,753
Change in fair value of warrant liabilities		198			6,833			1,126			14,004
Other income (expense), net		(60	)		(69	)		660			894
Total other income, net		2,552			10,209			10,078			26,651
Loss before provision for income taxes		(20,056	)		(37,649	)		(86,678	)		(109,179	)
Provision for income taxes		25			355			1,364			1,244
Net loss	$	(20,081	)	$	(38,004	)	$	(88,042	)	$	(110,423	)
Basic and diluted net loss per share attributable to common stockholders	$	(0.07	)	$	(0.13	)	$	(0.30	)	$	(0.40	)
Basic and diluted weighted-average common shares outstanding used in computing net loss per share attributable to common stockholders		293,338,324			284,197,733			290,674,554			277,252,951

PLANET CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited)

	Three Months Ended October 31,						Nine Months Ended October 31,
(In thousands)		2024			2023			2024			2023
Net loss	$	(20,081	)	$	(38,004	)	$	(88,042	)	$	(110,423	)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment		52			(1,667	)		(159	)		(1,543	)
Change in fair value of available-for-sale securities		48			89			(88	)		(970	)
Other comprehensive income (loss), net of tax		100			(1,578	)		(247	)		(2,513	)
Comprehensive loss	$	(19,981	)	$	(39,582	)	$	(88,289	)	$	(112,936	)

PLANET CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

	Nine Months Ended October 31,
(In thousands)		2024			2023
Operating activities
Net loss	$	(88,042	)	$	(110,423	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization		36,365			36,033
Stock-based compensation, net of capitalized cost		36,467			44,611
Change in fair value of warrant liabilities		(1,126	)		(14,004	)
Change in fair value of contingent consideration		3,161			(923	)
Other		(932	)		(3,538	)
Changes in operating assets and liabilities
Accounts receivable		5,487			(3,872	)
Prepaid expenses and other assets		8,499			9,483
Accounts payable, accrued and other liabilities		(7,731	)		(20,706	)
Deferred revenue		71			19,557
Deferred hosting costs		(298	)		(92	)
Net cash used in operating activities		(8,079	)		(43,874	)
Investing activities
Purchases of property and equipment		(32,694	)		(29,086	)
Capitalized internal-use software		(4,145	)		(3,266	)
Maturities of available-for-sale securities		57,046			142,903
Sales of available-for-sale securities		162,341			40,072
Purchases of available-for-sale securities		(105,582	)		(166,169	)
Business acquisition, net of cash acquired		(1,068	)		(7,542	)
Purchases of licensed imagery intangible assets		(4,558	)		—
Other		(300	)		(944	)
Net cash provided by (used in) investing activities		71,040			(24,032	)
Financing activities
Proceeds from the exercise of common stock options		332			6,770
Payments for withholding taxes related to the net share settlement of equity awards		(7,328	)		(7,112	)
Proceeds from employee stock purchase program		1,083			—
Payments of contingent consideration for business acquisitions		(8,783	)		—
Other		(606	)		(15	)
Net cash used in financing activities		(15,302	)		(357	)
Effect of exchange rate changes on cash and cash equivalents, and restricted cash and cash equivalents		74			(65	)
Net increase (decrease) in cash and cash equivalents, and restricted cash and cash equivalents		47,733			(68,328	)
Cash and cash equivalents, and restricted cash and cash equivalents at the beginning of the period		102,198			188,076
Cash and cash equivalents, and restricted cash and cash equivalents at the end of the period	$	149,931		$	119,748

PLANET RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (unaudited)

	Three Months Ended October 31,						Nine Months Ended October 31,
(in thousands)		2024			2023			2024			2023
Net loss	$	(20,081	)	$	(38,004	)	$	(88,042	)	$	(110,423	)
Interest income		(2,414	)		(3,445	)		(8,292	)		(11,753	)
Income tax provision		25			355			1,364			1,244
Depreciation and amortization		10,117			13,625			36,365			36,033
Change in fair value of warrant liabilities		(198	)		(6,833	)		(1,126	)		(14,004	)
Stock-based compensation		11,829			12,598			36,467			44,611
Restructuring costs ⁽¹⁾		25			7,341			10,524			7,341
Employee transaction bonuses in connection with the Sinergise business combination ⁽²⁾		—			2,317			—			2,317
Certain litigation expenses ⁽³⁾		395			—			395			—
Other (income) expense, net		60			69			(660	)		(894	)
Adjusted EBITDA	$	(242	)	$	(11,977	)	$	(13,005	)	$	(45,528	)

⁽¹⁾ As part of the 2024 headcount reduction, we recognized immaterial severance and other employee costs for the three months ended October 31, 2024 and $10.5 million of severance and other employee costs for the nine months ended October 31, 2024. For the three and nine months ended October 31, 2024, the restructuring related stock-based compensation benefit of $1.4 million is included on its respective line item. As part of the 2023 headcount reduction, we recognized $7.3 million of severance and other employee costs for the three and nine months ended October 31, 2023. For the three and nine months ended October 31, 2023, the restructuring related stock-based compensation benefit of $1.5 million is included on its respective line item.
⁽²⁾ Certain employees of Sinergise, which became employees of Planet, were paid cash transaction bonuses in connection with the closing of the Sinergise acquisition. The cost of the transaction bonuses was allocated from the purchase consideration we paid for the acquisition.
⁽³⁾ Expenses relating to the Delaware class action lawsuit.

PLANET RECONCILIATION OF U.S. GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited)

	Three Months Ended October 31,						Nine Months Ended October 31,
(In thousands)		2024			2023			2024			2023
Reconciliation of cost of revenue:
GAAP cost of revenue	$	23,749		$	29,350		$	81,288		$	81,375
Less: Stock-based compensation		745			888			2,563			2,855
Less: Amortization of acquired intangible assets		759			796			2,298			1,674
Less: Restructuring costs		128			563			1,312			563
Less: Employee transaction bonuses in connection with the Sinergise business combination		—			267			—			267
Non-GAAP cost of revenue	$	22,117		$	26,836		$	75,115		$	76,016

Reconciliation of gross profit:
GAAP gross profit	$	37,517		$	26,030		$	101,510		$	80,469
Add: Stock-based compensation		745			888			2,563			2,855
Add: Amortization of acquired intangible assets		759			796			2,298			1,674
Add: Restructuring costs		128			563			1,312			563
Add: Employee transaction bonuses in connection with the Sinergise business combination		—			267			—			267
Non-GAAP gross profit	$	39,149		$	28,544		$	107,683		$	85,828
GAAP gross margin		61	%		47	%		56	%		50	%
Non-GAAP gross margin		64	%		52	%		59	%		53	%

PLANET RECONCILIATION OF U.S. GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited)

	Three Months Ended October 31,						Nine Months Ended October 31,
(In thousands)		2024			2023			2024			2023
Reconciliation of operating expenses:
GAAP research and development	$	25,216		$	33,002		$	78,055		$	87,929
Less: Stock-based compensation		4,294			5,655			12,120			18,555
Less: Restructuring costs		(76	)		3,297			3,464			3,297
Less: Employee transaction bonuses in connection with the Sinergise business combination		—			1,891			—			1,891
Non-GAAP research and development	$	20,998		$	22,159		$	62,471		$	64,186
GAAP sales and marketing	$	16,795		$	20,774		$	62,013		$	66,209
Less: Stock-based compensation		1,655			1,626			6,863			7,827
Less: Amortization of acquired intangible assets		129			261			473			665
Less: Restructuring costs		24			1,943			4,457			1,943
Less: Employee transaction bonuses in connection with the Sinergise business combination		—			41			—			41
Non-GAAP sales and marketing	$	14,987		$	16,903		$	50,220		$	55,733
GAAP general and administrative	$	18,114		$	20,112		$	58,198		$	62,161
Less: Stock-based compensation		5,135			4,429			14,921			15,374
Less: Amortization of acquired intangible assets		36			93			151			254
Less: Restructuring costs		(51	)		1,538			1,291			1,538
Less: Employee transaction bonuses in connection with the Sinergise business combination		—			118			—			118
Less: Certain litigation expenses		395			—			395			—
Non-GAAP general and administrative	$	12,599		$	13,934		$	41,440		$	44,877

Reconciliation of loss from operations
GAAP loss from operations	$	(22,608	)	$	(47,858	)	$	(96,756	)	$	(135,830	)
Add: Stock-based compensation		11,829			12,598			36,467			44,611
Add: Amortization of acquired intangible assets		924			1,150			2,922			2,593
Add: Restructuring costs		25			7,341			10,524			7,341
Add: Employee transaction bonuses in connection with the Sinergise business combination		—			2,317			—			2,317
Add: Certain litigation expenses		395			—			395			—
Non-GAAP loss from operations	$	(9,435	)	$	(24,452	)	$	(46,448	)	$	(78,968	)

PLANET RECONCILIATION OF U.S. GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited)

	Three Months Ended October 31,						Nine Months Ended October 31,
(In thousands, except share and per share amounts)		2024			2023			2024			2023
Reconciliation of net loss
GAAP net loss	$	(20,081	)	$	(38,004	)	$	(88,042	)	$	(110,423	)
Add: Stock-based compensation		11,829			12,598			36,467			44,611
Add: Amortization of acquired intangible assets		924			1,150			2,922			2,593
Add: Restructuring costs		25			7,341			10,524			7,341
Add: Employee transaction bonuses in connection with the Sinergise business combination		—			2,317			—			2,317
Add: Certain litigation expenses		395			—			395			—
Income tax effect of non-GAAP adjustments		914			—			1,326			—
Non-GAAP net loss	$	(5,994	)	$	(14,598	)	$	(36,408	)	$	(53,561	)

Reconciliation of net loss per share, diluted
GAAP net loss	$	(20,081	)	$	(38,004	)	$	(88,042	)	$	(110,423	)
Non-GAAP net loss	$	(5,994	)	$	(14,598	)	$	(36,408	)	$	(53,561	)

GAAP net loss per share, basic and diluted (1)	$	(0.07	)	$	(0.13	)	$	(0.30	)	$	(0.40	)
Add: Stock-based compensation		0.04			0.04			0.13			0.16
Add: Amortization of acquired intangible assets		—			—			0.01			0.01
Add: Restructuring costs		—			0.03			0.04			0.03
Add: Employee transaction bonuses in connection with the Sinergise business combination		—			0.01			—			0.01
Add: Certain litigation expenses		—			—			—			—
Income tax effect of non-GAAP adjustments		—			—			—			—
Non-GAAP net loss per share, diluted (2) (3)	$	(0.02	)	$	(0.05	)	$	(0.13	)	$	(0.19	)

Weighted-average shares used in computing GAAP net loss per share, basic and diluted (1)		293,338,324			284,197,733			290,674,554			277,252,951
Weighted-average shares used in computing Non-GAAP net loss per share, diluted (1)		293,338,324			284,197,733			290,674,554			277,252,951

(1) Basic and diluted GAAP net loss per share was the same for each period presented as the inclusion of all potential Class A common stock and Class B common stock outstanding would have been anti-dilutive.
(2) Non-GAAP net loss per share, diluted is calculated using weighted-average shares, adjusted for dilutive potential shares assumed outstanding during the period. No adjustment was made to weighted-average shares for each period presented as the inclusion of all potential Class A common stock and Class B common stock outstanding would have been anti-dilutive.
(3) Totals may not sum due to rounding. Figures are calculated based upon the respective underlying non-rounded data.

PLANET
RECONCILIATION OF U.S. GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited)

The table below reconciles Backlog to remaining performance obligations for the periods indicated:

(in thousands)	October 31, 2024		January 31, 2024
Remaining performance obligations	$	145,890	$	132,571
Cancellable amount of contract value		86,250		109,821
Backlog	$	232,140	$	242,392

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