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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC  20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended October 31, 2021
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from:                  to
Commission File Number 001-38698
ANAPLAN, INC.
(Exact name of registrant as specified in its charter)
Delaware
27-0897861
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification Number)
50 Hawthorne Street
San FranciscoCalifornia 94105
(Address of principal executive offices)
(415742-8199
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, $0.0001 par value per sharePLANNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes þ No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes þ  No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
þ
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes  No þ
As of November 26, 2021, the number of shares of the registrant’s common stock, $0.0001 par value per share, outstanding was 147,661,622.


TABLE OF CONTENTS

2

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q includes forward-looking statements. All statements other than statements of historical facts contained in this report are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “design,” “intend,” “expect,” “could,” “plan,” “potential,” “predict,” “seek,” “should,” “would,” or the negative version of these words and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements include these identifying words. We have based these forward-looking statements on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, strategy, short- and long-term business operations and objectives, and financial needs. The forward-looking statements are contained principally in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors.” Forward-looking statements contained in this report include, but are not limited to, statements about:
the impact of the ongoing COVID-19 pandemic, related public health measures and any associated economic uncertainty on our business, operating results and financial condition and the businesses of our customers, prospective customers and partners;
our anticipated responses to, or actions arising out of, the COVID-19 pandemic;
our future performance, including our revenue, costs of revenue, gross profit or gross margin, operating expenses, remaining performance obligations, deferred revenue, dollar-based net expansion rate and billings;
the demand for and benefits from the use of our platform and solutions;
our growth strategy and ability to compete;
our ability to sell our platform to new customers;
our ability to retain, drive user adoption rates and expand use of our platform by our existing customers;
our ability to develop and maintain a pipeline of qualified and trained users of our platform for utilization with our customers and partners;
the sufficiency of our cash and cash equivalents to meet our projected operating requirements;
our ability to maintain the security of our platform, networks and systems and protect the data of our customers;
our ability to maintain the availability and functionality of our platform;
the development of our platform on the infrastructure of third-party public cloud partners;
our ability to achieve widespread market acceptance of our platform;
the provision of professional services by our partners, including the breadth and volume of such services;
our ability to successfully expand in our existing markets and into new markets;
our ability to effectively manage our growth and future expenses;
our ability to broaden and deepen our partner ecosystem and successfully operationalize our partnerships;
the utilization of our partner ecosystem to help drive growth;
our estimated total addressable market;
our ability to maintain, protect, and enhance our intellectual property;
our ability to enhance our platform, adapt to technological change and satisfy the cloud infrastructure priorities of our customers;
our ability to comply with laws, regulations and accounting rules applying to our business, including privacy regulations such as the General Data Protection Regulation;
anticipated income tax rates, tax estimates and tax standards;
the recruitment, hiring, training and retention of qualified employees and key personnel including direct sales, research and development and engineering personnel;
3

the rate of expansion and productivity of our sales force;
our anticipated investments in sales and marketing, research and development and other company functions;
our ability to grow our international business and manage the risks inherent in global operations;
our ability to realize anticipated benefits from strategic transactions in a timely manner;
changes in the competitive environment in our industry and the markets in which we operate;
our ability to manage changes in foreign currency exchange rates and effectively hedge our foreign currency exposure;
our ability to secure financing on favorable terms, or at all, to satisfy future capital needs; and
our ability to successfully defend litigation brought against us.
We caution you that the foregoing list may not contain all of the forward-looking statements made in this report.
These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including those described in “Risk Factors.” Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, the forward-looking events and circumstances discussed in this report may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.
You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance, or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, except as required by law, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. The forward-looking statements made in this report relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this report to reflect events or circumstances after the date of this report or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments we may make.
In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this report, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.
You should read this report and the documents that we reference in this report and have filed with the Securities and Exchange Commission as exhibits to this report with the understanding that our actual future results, levels of activity, performance, and events and circumstances may be materially different from what we expect.
4

PART I
ITEM 1. FINANCIAL STATEMENTS
ANAPLAN, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)
As of
October 31, 2021January 31, 2021
ASSETS
Current assets:
Cash and cash equivalents
$312,367 $320,990 
Accounts receivable, net of allowances for credit losses of $2,971 and $3,162 as of October 31, 2021 and January 31, 2021, respectively
138,825 147,005 
Deferred commissions, current portion
43,309 36,797 
Prepaid expenses and other current assets
27,295 24,252 
Total current assets
521,796 529,044 
Property and equipment, net60,912 51,603 
Deferred commissions, net of current portion92,787 82,405 
Goodwill32,379 32,379 
Operating lease right-of-use assets33,587 33,985 
Other noncurrent assets17,027 9,709 
TOTAL ASSETS$758,488 $739,125 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$10,227 $7,949 
Accrued expenses
103,651 101,507 
Deferred revenue, current portion
320,064 287,778 
Operating lease liabilities, current portion
9,576 7,951 
Total current liabilities
443,518 405,185 
Deferred revenue, net of current portion3,658 7,765 
Operating lease liabilities, net of current portion28,580 30,130 
Other noncurrent liabilities17,652 18,032 
TOTAL LIABILITIES493,408 461,112 
Stockholders' equity:
Common stock, par value of $0.0001 per share; 1,750,000 shares authorized as of October 31, 2021 and January 31, 2021; 147,620 and 143,502 shares issued and outstanding as of October 31, 2021 and January 31, 2021
14 14 
Accumulated other comprehensive loss
(9,338)(7,528)
Additional paid-in capital
1,064,972 932,505 
Accumulated deficit
(790,568)(646,978)
TOTAL STOCKHOLDERS' EQUITY265,080 278,013 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$758,488 $739,125 
The information as of January 31, 2021, was derived from the Company’s audited Consolidated Balance Sheet as of January 31, 2021.
The accompanying notes are an integral part of these condensed consolidated financial statements.
5

ANAPLAN, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(In thousands, except per share data)
(Unaudited)
Three Months Ended October 31,Nine Months Ended October 31,
2021202020212020
Revenue:
Subscription revenue
$139,343 $104,707 $388,437 $295,648 
Professional services revenue
16,005 10,168 41,060 29,582 
Total revenue
155,348 114,875 429,497 325,230 
Cost of revenue:
Cost of subscription revenue
25,627 19,187 69,601 50,520 
Cost of professional services revenue
16,512 10,188 41,586 29,037 
Total cost of revenue
42,139 29,375 111,187 79,557 
Gross profit113,209 85,500 318,310 245,673 
Operating expenses:
Research and development
40,782 24,629 110,211 72,986 
Sales and marketing
92,859 73,893 277,610 218,481 
General and administrative
27,732 22,851 77,362 66,514 
Total operating expenses
161,373 121,373 465,183 357,981 
Loss from operations(48,164)(35,873)(146,873)(112,308)
Interest income (expense), net(122)(208)(404)119 
Other income (expense), net(368)(291)(3,202)3,385 
Loss before income taxes(48,654)(36,372)(150,479)(108,804)
Benefit from (provision for) income taxes7,676 (420)6,889 (3,114)
Net loss(40,978)(36,792)(143,590)(111,918)
Comprehensive loss:
Foreign currency translation adjustments
(762)(138)(1,810)(1,674)
Comprehensive loss$(41,740)$(36,930)$(145,400)$(113,592)
Net loss per share attributable to common stockholders, basic and diluted
$(0.28)$(0.26)$(0.99)$(0.81)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted
146,966 140,603 145,549 138,448 
The accompanying notes are an integral part of these condensed consolidated financial statements.
6

ANAPLAN, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In thousands)
(Unaudited)
Common StockAdditional Paid-in CapitalAccumulated Other Comprehensive LossAccumulated DeficitTotal Stockholders’ Equity
SharesAmount
For the Three Months Ended October 31, 2021
Balance at July 31, 2021146,144 $14 $1,020,044 $(8,576)$(749,590)$261,892 
Stock-based compensation
— — 40,516 — — 40,516 
Exercise of stock options, net of repurchases and early exercises
364 — 4,412 — — 4,412 
Vesting of restricted stock units
1,112 — — — — — 
Net loss
— — — — (40,978)(40,978)
Foreign currency translation adjustments
— — — (762)— (762)
Balance at October 31, 2021147,620 $14 $1,064,972 $(9,338)$(790,568)$265,080 
For the Three Months Ended October 31, 2020
Balance at July 31, 2020139,306 $14 $856,129 $(5,862)$(568,137)$282,144 
Stock-based compensation
— — 27,890 — — 27,890 
Exercise of stock options, net of repurchases and early exercises
692 — 3,957 — — 3,957 
Vesting of restricted stock units
1,628 — — — — — 
Net loss
— — — — (36,792)(36,792)
Foreign currency translation adjustments
— — — (138)— (138)
Balance at October 31, 2020141,626 $14 $887,976 $(6,000)$(604,929)$277,061 
For the Nine Months Ended October 31, 2021
Balance at January 31, 2021143,502 $14 $932,505 $(7,528)$(646,978)$278,013 
Stock-based compensation
— — 113,045 — — 113,045 
Exercise of stock options, net of repurchases and early exercises
929 — 7,908 — — 7,908 
Vesting of restricted stock units
2,931 — — — — — 
Issuance of common stock under employee stock purchase plan
258 — 11,514 — — 11,514 
Net loss
— — — — (143,590)(143,590)
Foreign currency translation adjustments
— — — (1,810)— (1,810)
Balance at October 31, 2021147,620 $14 $1,064,972 $(9,338)$(790,568)$265,080 
For the Nine Months Ended October 31, 2020
Balance at January 31, 2020135,495 $13 $788,447 $(4,326)$(492,453)$291,681 
Cumulative adjustment upon adoption of ASC 326, Financial Instruments - Credit Losses
— — — — (558)(558)
Stock-based compensation
— — 77,433 — — 77,433 
Exercise of stock options, net of repurchases and early exercises
2,393 1 12,590 — — 12,591 
Vesting of restricted stock units
3,503 — — — — — 
Issuance of common stock under employee stock purchase plan
235 — 9,481 — — 9,481 
Net loss
— — — — (111,918)(111,918)
Foreign currency translation adjustments
— — — (1,674)— (1,674)
Other— — 25 — — 25 
Balance at October 31, 2020141,626 $14 $887,976 $(6,000)$(604,929)$277,061 
The accompanying notes are an integral part of these condensed consolidated financial statements.
7

ANAPLAN, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Nine Months Ended October 31,
20212020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss$(143,590)$(111,918)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization
21,465 18,934 
Amortization of deferred commissions
31,003 24,418 
Stock-based compensation
108,522 74,432 
Reduction of operating lease right-of-use assets and accretion of operating lease liabilities
7,549 7,642 
Foreign currency remeasurement losses (gains)
1,565 (3,178)
Release of deferred tax valuation allowance(7,639) 
Other non-cash items
582 2,609 
Changes in operating assets and liabilities:
Accounts receivable
7,241 (22,012)
Prepaid expenses and other current assets
(3,143)1,290 
Other noncurrent assets
(698)(1,376)
Deferred commissions
(49,292)(43,439)
Accounts payable and accrued expenses
5,620 10,271 
Deferred revenue
29,304 26,831 
Payments for operating lease liabilities, net
(6,956)(6,907)
Other noncurrent liabilities
554 7,468 
Net cash provided by (used in) operating activities
2,087 (14,935)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment
(9,089)(5,243)
Capitalized internal-use software
(10,207)(7,666)
Net cash used in investing activities
(19,296)(12,909)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options
7,891 12,575 
Proceeds from employee stock purchase plan
11,514 9,481 
Principal payments on finance lease obligations
(7,579)(6,160)
Net cash provided by financing activities
11,826 15,896 
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
(3,240)1,005 
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH(8,623)(10,943)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH - Beginning of period320,990 309,894 
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH - End of period$312,367 $298,951 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest
$396 $555 
Cash paid for income taxes
$1,563 $1,415 
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Increase (decrease) in purchases of property and equipment included in liabilities
$(377)$(849)
Finance leases for property and equipment
$6,914 $7,285 
The accompanying notes are an integral part of these condensed consolidated financial statements.
8

ANAPLAN, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(1)Summary of Business and Significant Accounting Policies
Description of Business
Anaplan, Inc. (the Company, Anaplan, we, us, or our) was incorporated in Delaware on July 9, 2009 and is headquartered in San Francisco, California, with offices in multiple U.S. and international locations.
The Company provides a cloud-based Connected Planning platform that helps connect organizations and people to make better and faster decisions. The Company delivers its application over the Internet as a subscription service using a software-as-a-service (SaaS) model. The Company also offers professional services related to implementing and supporting its application.
Fiscal Year
The Company’s fiscal year ends on January 31. References to fiscal 2022, for example, refer to the fiscal year ending January 31, 2022.
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting and include the accounts of the Company and its wholly owned subsidiaries (collectively, the Company). All significant intercompany balances and transactions have been eliminated in consolidation. The unaudited condensed consolidated balance sheet as of January 31, 2021, included herein was derived from the audited financial statements as of that date, but does not include all disclosures including certain notes required by U.S. GAAP on an annual reporting basis. The unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the balance sheets, statements of comprehensive loss, statements of stockholders’ equity, and statements of cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year or any future period.
The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Form 10-K filed with the SEC on March 12, 2021.
Use of Estimates
The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Such estimates include, but are not limited to, the determination of revenue recognition, certain assumptions in the valuation of stock awards, the determination of the period of benefit for deferred commissions, the determination of the incremental borrowing rate used for operating lease liabilities, the allowance for credit losses, and the fair value of assets acquired and liabilities assumed for business combinations. Actual results could differ from those estimates.
The Company continues to assess the impact of COVID-19 and as of the date of filing of these unaudited condensed consolidated financial statements, the Company is not aware of any specific event or circumstance that would require updating significant estimates or judgments or revising the carrying value of the Company's assets or liabilities as presented in the unaudited interim condensed consolidated financial statements. These estimates may change as new events occur and additional information is obtained. Actual results could differ from those estimates and any such differences may be material to our financial statements.

Summary of Significant Accounting Policies

The Company’s significant accounting policies are discussed in Note 1 of the notes to the consolidated financial statements included in the Company’s Form 10-K filed with the SEC on March 12, 2021. There have been no significant changes to these policies during the nine months ended October 31, 2021.
9

Recently Adopted Accounting Pronouncements
In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by removing certain exceptions to the general principles of income taxes and reducing the cost and complexity in accounting for income taxes. The guidance is effective for interim and annual periods beginning after December 15, 2020. The adoption of the new standard had no material impact on the Company's condensed consolidated financial statements.
(2)Consolidated Balance Sheet Components
Property and Equipment, net
Property and equipment consisted of the following:
As of
October 31, 2021January 31, 2021
(In thousands)
Computer and office equipment$69,856 $58,231 
Leasehold improvements16,918 14,055 
Internal-use software47,917 41,475 
Construction in progress15,439 6,941 
Property and equipment, gross
150,130 120,702 
Less: accumulated depreciation(89,218)(69,099)
Property and equipment, net
$60,912 $51,603 
Depreciation expense was $7.1 million and $20.5 million for the three and nine months ended October 31, 2021, respectively, and $6.3 million and $17.9 million for the three and nine months ended October 31, 2020, respectively.
The Company capitalized $5.1 million and $14.0 million in internal-use software in the three and nine months ended October 31, 2021, respectively, of which $1.4 million and $4.2 million was stock-based compensation expense for each respective period. The Company capitalized $3.2 million and $10.3 million in internal-use software in the three and nine months ended October 31, 2020, respectively, of which $0.9 million and $2.7 million was stock-based compensation expense for each respective period. Amortization of capitalized internal-use software, included in total depreciation expense above, was $2.9 million and $8.4 million in the three and nine months ended October 31, 2021, respectively, and $2.4 million and $6.7 million in the three and nine months ended October 31, 2020, respectively.
Accrued Expenses
Accrued expenses consisted of the following:
As of
October 31, 2021January 31, 2021
(In thousands)
Vendor accruals$9,705 $11,262 
Accrued commission11,664 12,521 
Accrued bonuses9,329 15,583 
Accrued other payroll liabilities40,410 31,238 
Current portion of finance lease obligations6,998 8,031 
Accrued other25,545 22,872 
Accrued expenses
$103,651 $101,507 
10

Preferred Stock
As of October 31, 2021 and January 31, 2021, the authorized preferred stock of the Company consisted of 25 million shares with a par value of $0.0001 per share. There were no shares of preferred stock issued and outstanding as of October 31, 2021, and January 31, 2021.
(3)Bank Borrowing
In April 2020, the Company entered into the Third Amendment to Credit Agreement and First Amendment to Collateral Agreement with Wells Fargo Bank, N.A. (“Wells Fargo”) as administrative agent and lender (the “Third Amendment”). Among other things, the Third Amendment further amends the Credit Agreement entered into with Wells Fargo in April 2018, as amended in September 2018 and October 2019 (the “Credit Agreement”) in order to: (1) increase the aggregate revolving credit commitment amount by $20.0 million, so that the Company may borrow up to $60.0 million under a secured revolving credit facility, subject to the terms of the Credit Agreement including the accounts receivable borrowing base, for general corporate purposes; and (2) extend the maturity date of the revolving credit facility until April 23, 2022. Also, pursuant to the Third Amendment, any loans drawn on the credit facility will incur interest at a rate equal to the highest of (A) the prime rate, (B) the federal funds rate plus 0.5%, and (C) the one-month LIBOR plus 1%. Interest is payable monthly in arrears with the principal and any accrued and unpaid interest due on April 23, 2022. As of October 31, 2021, and January 31, 2021, the Company had not drawn down any amounts under the Credit Agreement. As of October 31, 2021, the Company was in compliance with the financial covenants contained in the Credit Agreement.
(4)Leases
The Company leases certain facilities under operating leases, and property and equipment under finance leases that expire from fiscal 2022 to 2028.
The components of lease expense were as follows:
Three Months Ended October 31,Nine Months Ended October 31,
2021202020212020
(In thousands)
Operating lease costs$2,550 $2,098 $7,549 $7,642 
Finance lease costs
Amortization of assets
$2,503 $2,308 $7,602 $6,101 
Interest on lease liabilities
117 189 396 555 
Total finance lease costs
$2,620 $2,497 $7,998 $6,656 

11

Supplemental balance sheet information related to leases is as follows:
As of
October 31, 2021January 31, 2021
(In thousands)
Operating leases:
Operating lease ROU assets
$33,587 $33,985 
Operating lease liabilities, current portion
$9,576 $7,951 
Operating lease liabilities, net of current portion
28,580 30,130 
Total operating lease liabilities
$38,156 $38,081 
Finance leases:
Property and equipment, gross
$36,028 $29,132 
Less: accumulated depreciation
(23,462)(15,876)
Property and equipment, net
$12,566 $13,256 
Accrued expenses
$6,998 $8,031 
Other noncurrent liabilities
5,952 5,761 
Total finance lease liabilities
$12,950 $13,792 
Weighted-average lease terms and discount rates are as follows:
As of October 31, 2021
Operating LeasesFinance Leases
Weighted-average remaining lease terms4.1 years1.9 years
Weighted-average discount rates5.2%3.2%
Future minimum lease payments under operating leases and finance leases as of October 31, 2021, are as follows:
As of October 31, 2021
Operating LeasesFinance Leases
(In thousands)
Years ending January 31,
2022 (remaining 3 months)$3,011 $2,271 
202311,402 6,720 
20249,878 3,712 
20258,287 776 
20267,834  
Thereafter
2,456  
Total lease payments
42,868 13,479 
Less: amount representing interest
(4,039)(529)
Less: leases less than 12 months
(673) 
Total lease liabilities
$38,156 $12,950 
The Company enters into commitments to lease computer and office equipment for which the timing of the lease payments is not determined until the date of commencement. As of October 31, 2021, the amounts related to these leases were approximately $14.6 million, which are to be paid over three years after the date of commencement.
12

(5) Acquisition-Related Intangible Assets
The components of identifiable intangible assets included in other noncurrent assets are as follows:
As of
October 31, 2021January 31, 2021
(In thousands)
Developed technology$5,200 $5,200 
Customer relationships2,976 2,976 
Intangible assets, gross
$8,176 $8,176 
Less: accumulated amortization(3,668)(2,663)
Intangible assets, net
$4,508 $5,513 
Amortization expense of acquisition-related intangible assets was $0.3 million and $1.0 million for the three and nine months ended October 31, 2021 and 2020.
The expected future intangible assets amortization as of October 31, 2021 is as follows:
As of October 31, 2021
(In thousands)
Years ending January 31,
2022 (remaining 3 months)$335 
20231,340 
20241,340 
2025993 
2026300 
Thereafter
200 
Total future intangible assets amortization
$4,508 

(6) Employee Stock Plans
As of October 31, 2021 and January 31, 2021, the Company was authorized to issue 1,750,000,000 shares of common stock. Shares were reserved for future issuance as follows:
As of
October 31, 2021January 31, 2021
(In thousands)
Outstanding stock options5,500 6,600 
Outstanding restricted stock units ("RSUs") and performance-based restricted stock units ("PSUs")8,918 8,558 
Shares available for future issuances under the 2018 Stock Plan
25,618 21,564 
Shares available for future issuances under the 2018 ESPP
4,894 3,717 
Total
44,930 40,439 
13

Stock Options
A summary of stock option activity for the nine months ended October 31, 2021, was as follows:
Number of Shares
Weighted
Average
Exercise
Price
Aggregate
Intrinsic
Value
(In thousands)(In thousands)
Balance as of January 31, 20216,600 $11.83 $362,149 
Options exercised
(929)8.49 — 
Options forfeited
(171)25.58 — 
Balance as of October 31, 20215,500 $11.96 $292,875 
Exercisable as of October 31, 20215,436 $11.72 $290,766 
Vested and expected to vest as of October 31, 20214,706 $9.38 $262,720 
As of October 31, 2021, unrecognized stock-based compensation cost related to outstanding unvested stock options that are expected to vest was $6.6 million, which is expected to be recognized over a weighted-average period of 1.6 years.
RSUs and PSUs
A summary of RSUs and PSUs activities for the nine months ended October 31, 2021, was as follows:
Number of Shares
Weighted-
Average
Grant Date
Fair Value
(In thousands)
Balance as of January 31, 20218,558 $37.15 
RSUs and PSUs granted
4,834 57.36 
RSUs and PSUs vested
(2,931)33.65 
RSUs and PSUs forfeited
(1,543)38.63 
Balance as of October 31, 20218,918 $49.00 
As of October 31, 2021, unrecognized stock-based compensation cost related to outstanding unvested RSUs that are expected to vest was $303.1 million, which is expected to be recognized over a weighted-average period of 2.9 years.
During the nine months ended October 31, 2021, the Company granted PSUs to certain senior executive officers under the 2018 Stock Plan. PSUs are subject to service-based and market-based vesting conditions. The number of shares that could be earned is based on our total stockholder return as compared to the constituents of the S&P Software & Services Select Index over 1-year, 2-year and 3-year cumulative performance periods inclusive of our fiscal 2022 through the fiscal year ended January 31, 2024. The number of shares that could be earned will range from 0% to 200% of the target number of shares. The fair value of the PSUs grant was determined using a Monte Carlo simulation approach. The compensation cost is recognized under the accelerated attribution method.
During the three and nine months ended October 31, 2021, the Company granted PSUs to certain senior executive officers under the 2018 Stock Plan. These PSUs are subject to service-based and market-based vesting conditions. The number of shares that could be earned will range from 0% to 200% of the target number of shares based on specific share price target of the Company’s common stock. The fair value of the PSUs grant was determined using a Monte Carlo simulation approach. The compensation cost is recognized under the accelerated attribution method.
As of October 31, 2021, unrecognized stock-based compensation cost related to outstanding unvested PSUs that are expected to vest was $16.8 million, which is expected to be recognized over a weighted-average period of 2.2 years.
14

Stock-Based Compensation
The stock-based compensation expense, net of estimated forfeitures, by line item in the accompanying condensed consolidated statements of comprehensive loss is summarized as follows:
Three Months Ended October 31,Nine Months Ended October 31,
2021202020212020
(In thousands)
Cost of subscription revenue$2,184 $953 $5,536 $2,537 
Cost of professional services revenue1,170 506 2,992 1,706 
Research and development9,748 5,235 25,098 13,261 
Sales and marketing16,907 12,570 51,604 33,814 
General and administrative8,984 7,696 23,292 23,114 
Total stock-based compensation expense
$38,993 $26,960 $108,522 $74,432 
The Company’s estimated forfeiture rate is based on accumulated historical forfeiture data.
(7) Fair Value Measurements
Cash and cash equivalents included investments in money market funds of $220.9 million and $240.0 million at October 31, 2021 and January 31, 2021, respectively. The fair value of the money market funds was determined using quoted prices for identical investments in active markets, which are considered to be Level 1 inputs under the fair value measurements and disclosure guidance.
Other than the money market funds, the Company did not hold any assets or liabilities that are measured at fair value on a recurring basis as of October 31, 2021, and January 31, 2021. There were no transfers into or out of Level 1, Level 2, or Level 3 during the three and nine months ended October 31, 2021 and 2020.
(8) Revenue Recognition
The Company derives revenue primarily from sales of subscription services and, to a lesser degree, from professional services. Revenue is recognized when a customer obtains access to the platform and receives the related professional services. The amount of revenue recognized reflects the consideration that the Company expects to be entitled to receive in exchange for these services.
Disaggregation of Revenue
The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use the Company’s cloud-based application:
Three Months Ended October 31,Nine Months Ended October 31,
2021202020212020
AmountPercentage
of Revenue
AmountPercentage
of Revenue
AmountPercentage
of Revenue
AmountPercentage
of Revenue
(In thousands, except percentage data)
Americas$86,454 55 %$64,727 56 %$237,216 55 %$185,793 57 %
EMEA50,784 33 37,277 33 142,735 33 103,761 32 
APAC18,110 12 12,871 11 49,546 12 35,676 11 
Total$155,348 100 %$114,875 100 %$429,497 100 %$325,230 100 %
The United States and the U.K. were the only two countries that represented more than 10% of the Company’s total revenue in any period. Revenue in the United States and as a percentage of total revenue comprised of $83.1 million and 53%, and $227.3 million and 53% in the three and nine months ended October 31, 2021, respectively, and $62.2 million and 54%, and $178.5 million and 55% in the three and nine months ended October 31, 2020, respectively. Revenue in the U.K. comprised of $19.0 million and 12%, and $52.4 million and 12% in the three and nine months ended October 31, 2021, respectively, and $13.8 million and 12%, and $38.3 million and 12% in the three and nine months ended October 31, 2020, respectively.
15

Contract Balances
Contract assets represent revenue recognized for contracts that have not yet been invoiced to customers, typically for multi-year arrangements. Total contract assets were $0.1 million and $0.3 million as of October 31, 2021, and January 31, 2021, respectively, which were included within prepaid expenses and other current assets and other noncurrent assets on the condensed consolidated balance sheets.
Contract liabilities consist of deferred revenue. Revenue is deferred when the Company has the right to invoice in advance of performance under a contract. The current portion of deferred revenue balances are recognized over the following 12-month period. The amount of revenue recognized in the three and nine months ended October 31, 2021 that was included in deferred revenue at the beginning of each period was $125.4 million and $244.7 million, respectively. The amount of revenue recognized in the three and nine months ended October 31, 2020 that was included in deferred revenue at the beginning of each period was $91.7 million and $186.0 million, respectively.
Remaining Performance Obligations
As of October 31, 2021, the aggregate amount of the transaction price allocated to remaining performance obligations was $923.2 million, which consists of both billed consideration in the amount of $323.7 million and unbilled consideration in the amount of $599.5 million that the Company expects to recognize as revenue in the future periods. The Company expects to cumulatively recognize approximately 53% and 84% of this amount as revenue in the next 12 months and 24 months, respectively, with the remaining balance recognized thereafter.
As of January 31, 2021, the aggregate amount of the transaction price allocated to remaining performance obligations was $817.6 million, which consists of both billed consideration in the amount of $295.5 million and unbilled consideration in the amount of $522.1 million that the Company expects to recognize as revenue in the future periods. The Company expects to recognize 51% and 83% of this amount as revenue in the next 12 months and 24 months, respectively, with the remaining balance recognized thereafter.
The Company applied a practical expedient allowing it not to disclose the amount of the transaction price allocated to the remaining performance obligations for contracts with an original expected duration of one year or less.
(9) Commitments and Contingencies
On August 24, 2020, a purported stockholder of the Company filed a putative securities class action complaint in the United States District Court for the Northern District of California, captioned Grobler v. Anaplan, Inc., et al., 3:20-cv-05959, against the Company and certain of the Company’s executive officers. The Court appointed a lead plaintiff on November 12, 2020, and on January 6, 2021, the lead plaintiff filed an amended complaint, captioned Sakkal v. Anaplan, Inc., et al. The amended complaint alleged violations of Section 10(b) and Section 20(a) of the Securities Exchange Act of 1934, as amended, purportedly on behalf of all persons who purchased Anaplan, Inc. securities between November 21, 2019, and February 26, 2020, inclusive. The claims were based upon allegations that the defendants misrepresented and/or omitted material information in certain of the Company’s prior public filings regarding the business, operations and prospects of the Company. The Company filed a motion to dismiss the amended complaint on March 8, 2021. On August 31, 2021, the Court entered an order dismissing the amended complaint without prejudice. On September 21, 2021, the parties filed a stipulation of voluntary dismissal whereby the lead plaintiff agreed not to further litigate the case, and the Court subsequently terminated the case.
From time to time, the Company is party to litigation and subject to claims incident to the ordinary course of business. As our growth continues, the Company may become party to an increasing number of litigation matters and claims. The outcome of litigation and claims cannot be predicted with certainty, and the resolution of these matters could materially affect our future results of operations, cash flows, or financial position. The Company is not presently party to any legal proceedings that, in the opinion of management, if determined adversely to the Company, would individually or taken together have a material adverse effect on our business, operating results, financial condition, or cash flows.
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(10) Income Taxes
The Company computed its interim provision using its estimated annual effective tax rate. The Company’s income tax benefit was $7.7 million and $6.9 million during the three and nine months ended October 31, 2021, respectively. The Company’s income tax expense was $0.4 million and $3.1 million during the three and nine months ended October 31, 2020, respectively.
During the three months ended October 31, 2021, the Company released a valuation allowance related to its Israel deferred tax assets on the basis of management’s assessment of the amount of its deferred tax assets that are more likely than not to be realized. Management’s conclusion was based on a detailed evaluation of all available positive and negative evidence and the weight of such evidence, including an expectation of continued earnings. The valuation allowance release resulted in a tax benefit of $7.6 million during the three and nine months ended October 31, 2021. The Company continues to maintain a full valuation allowance on its federal, state and U.K. deferred tax assets due to management’s conclusion that it is not more likely than not that those deferred tax assets will be realized.
(11) Net Loss Per Share Attributable to Common Stockholders
The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders:
Three Months Ended October 31,Nine Months Ended October 31,
2021202020212020
(In thousands, except per share data)
Numerator:
Net loss$(40,978)$(36,792)$(143,590)$(111,918)
Denominator:
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted
146,966 140,603 145,549 138,448 
Net loss per share attributable to common stockholders, basic and diluted
$(0.28)$(0.26)$(0.99)$(0.81)
The potential shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive are as follows:
As of October 31,
20212020
(In thousands)
Stock options5,500 7,136 
RSUs and PSUs8,918 9,351 
Total
14,418 16,487 

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K for the year ended January 31, 2021, filed with the SEC on March 12, 2021. This discussion contains forward-looking statements that involve risks and uncertainties as discussed in “Cautionary Note Regarding Forward-Looking Statements” included in this Quarterly Report on Form 10-Q. Our actual results could differ materially from those discussed below. Factors that could cause or contribute to such differences include, but are not limited to, impacts on our business and general economic conditions due to the current COVID-19 pandemic, those identified below and those discussed in “Risk Factors” under Part II, Item 1A in this Quarterly Report on Form 10-Q. Our fiscal year ends January 31.
Overview
Anaplan is a cloud-native enterprise SaaS company and a market leader, empowering global enterprises to orchestrate transformative business performance. Our customers rely on the Anaplan platform—powered by our proprietary Hyperblock® technology—to connect teams, systems, and insights from across their organizations to continuously adapt to change, transform how they operate, and reinvent value creation. Our cloud platform empowers enterprises to orchestrate complex scenario planning and conduct continuous forecasting to systematically identify possibilities, seize opportunities, and reduce risk. Users of our platform can view and assess the impact of assumptions on plans and key performance indicators in real time and across multiple business dimensions. The Anaplan platform enables businesses to be more agile, make better decisions and to plan and execute their ongoing digital transformation to compete in today’s digital economy.
Our customers often initially adopt our platform within a specific business function for one or more planning use cases, but also because our platform has the potential to be used as an enterprise-wide integrated planning and forecasting tool and as part of a broader digital transformation initiative. We sell subscriptions to our cloud-based planning platform primarily through our direct sales team targeting these customers. We also have a robust partnership ecosystem that serves as an integral part of our go-to-market strategy and an extension of our direct sales force. Our strategic consulting and systems integration partners provide us with a significant source of lead generation and implementation leverage. These partners act as strategic advisors to senior executives in corporate, functional, and process transformation initiatives of organizations. They often promote our platform as their clients examine how to plan more effectively or seek digital transformation through organizational change or improved business processes. We also rely on partners with deep subject-matter expertise in the implementation of specific use cases who can facilitate implementations for our customers. Our partners also help to drive thought leadership in promoting Connected Planning and digital transformation.
Once our customers see the benefits and wide applicability of our platform, we use a “land and expand” sales strategy to encourage our existing customers to increase the number of users, add new use cases, and expand to additional lines of business, divisions, and geographies. This expansion often generates a natural network effect in which the value of our platform to customers increases as more use cases are adopted, more users are connected, and greater amounts of data are incorporated in our platform delivering exponential value to our customers.
We see a greenfield opportunity to help over 70 million knowledge workers around the world plan more efficiently using Anaplan’s platform.
We derive the substantial majority of our revenue from subscriptions for users on our platform. Our initial subscription term is typically two to three years, although some customers commit for shorter periods. We generally bill our customers annually in advance. We also offer professional services, including consulting, implementation, and training, but are increasingly leveraging our partners to provide these services. During the three months ended October 31, 2021 and 2020, subscription revenue was $139.3 million and $104.7 million, respectively, representing a year-over-year subscription revenue growth rate of 33%. During the three months ended October 31, 2021 and 2020, services revenue was $16.0 million and $10.2 million, respectively. Our subscription revenue as a percentage of total revenue was 90% and 91% in the three months ended October 31, 2021 and 2020, respectively. During the nine months ended October 31, 2021 and 2020, subscription revenue was $388.4 million and $295.6 million, respectively, representing a year-over-year subscription revenue growth rate of 31%. During the nine months ended October 31, 2021 and 2020, services revenue was $41.1 million and $29.6 million, respectively. Our subscription revenue as a percentage of total revenue was 90% and 91% in the nine months ended October 31, 2021 and 2020, respectively.
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During the three months ended October 31, 2021 and 2020, our total revenue was $155.3 million and $114.9 million, respectively. Approximately 47% and 46% of our total revenue was generated from outside of the United States in the three months ended October 31, 2021 and 2020, respectively. During the nine months ended October 31, 2021 and 2020, our total revenue was $429.5 million and $325.2 million, respectively. Approximately 47% and 45% of our revenue was generated from outside of the United States in the nine months ended October 31, 2021 and 2020. Our net loss was $41.0 million and $36.8 million in the three months ended October 31, 2021 and 2020, respectively, and $143.6 million and $111.9 million in the nine months ended October 31, 2021 and 2020, respectively.
We believe that our focus on customer success allows us to retain and expand the subscription revenue generated from our existing customers, and is an indicator of the long-term value of our customer relationships for Anaplan as a whole. We track our performance in this area by measuring our dollar-based net expansion rate, which compares our annual recurring revenue from the same set of customers across comparable periods. The dollar-based net expansion rate was 119% and 114% as of October 31, 2021, and January 31, 2021, respectively.
Our dollar-based net expansion rate equals the annual recurring revenue at the end of a period for a base set of customers from which we generated annual recurring revenue in the year prior to the date of calculation, divided by the annual recurring revenue one year prior to the date of the calculation for that same set of customers. Annual recurring revenue is calculated as subscription revenue already booked and in backlog that will be recorded over the next 12 months, assuming any contract expiring in those 12 months is renewed and continues on its existing terms and at its prevailing rate of utilization.
The number of customers with greater than $250,000 of annual recurring revenue was 528 and 453 as of October 31, 2021, and January 31, 2021, respectively. We monitor this metric and believe it is a useful tool to investors, as an indicator of the scale of customer adoption and expansion of our platform.
We define calculated billings as total revenue plus the change in deferred revenue in the period. Calculated billings in any particular period is comprised of subscription contracts with existing customers (including renewal contracts and add-on contracts), subscription contracts with new customers, and contracts for professional services. Calculated billings is intended to provide information about our subscription revenue growth over time and can typically be seen as an early indicator of trends in revenue growth. While calculated billings can increase as our revenues grow, it may significantly fluctuate from period to period for several reasons, including the timing of contracted billings, the timing of renewals, and other factors. See Part II, Item 1A, “Risk Factors—Operational Risks—The sum of our revenue and changes in deferred revenue may not be an accurate indicator of business activity within a period” for a description of some limitations in the use of calculated billings.
Calculated billings is calculated as follows:
Three Months Ended October 31,Nine Months Ended October 31,
2021202020212020
(In thousands)
Total revenue$155,348 $114,875 $429,497 $325,230 
Add: Deferred revenue (end of period)323,722 245,031 323,722 245,031 
Less: Deferred revenue (beginning of period)
(296,521)(214,554)(295,543)(220,208)
Calculated billings
$182,549 $145,352 $457,676 $350,053 

We regularly evaluate acquisitions or investment opportunities in complementary businesses, services and technologies and intellectual property rights as a means to expand our offerings through a disciplined and strategic acquisition process. We may continue to make such acquisitions and investments in the future, and we plan to reinvest a significant portion of our incremental revenue in future periods to grow our business.
COVID-19 Update
The COVID-19 pandemic continues to persist. The broader implications of the COVID-19 pandemic on our business, results of operations, and overall financial performance remain uncertain. We have seen and may continue to see in certain geographies some of our customers and prospective customers defer or delay buying decisions and project implementations and prolonged sales cycles. These and other changes in customer demand for our solutions could materially and adversely impact our business, results of operations, and overall financial performance in future periods.
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As the impact of the COVID-19 pandemic continues to unfold around the world, we remain focused on supporting our employees, customers, and partners. In response to the COVID-19 pandemic, we modified the manner in which we operate and we required our employees to work remotely, maintained business-related travel restrictions, and virtualized, postponed or cancelled our sales and marketing, employee or industry events. We are slowly moving toward normal operations on a market-by-market basis in accordance with local guidelines, but continue to employ a hybrid approach in most regions. Our approach may vary among geographies depending on local guidelines, and may change at any time, including in response to new or reimposed precautionary measures as the COVID-19 pandemic evolves. We have developed health and safety procedures to enable our employees to safely return to our offices. The impact, if any, of these and any additional operational changes we may implement is uncertain, but we currently believe the changes we have implemented have not materially affected, and are not expected to have a material and adverse effect on, our ability to maintain financial reporting systems, internal control over financial reporting and disclosure controls and procedures.
The extent to which the ongoing COVID-19 pandemic, and associated global economic uncertainty, may impact our business will depend on future developments, including the duration and spread of the pandemic and the prevalence and virulence of variants of COVID-19; the scope and effectiveness of precautionary measures designed to contain and prevent the spread of COVID-19; the availability and effectiveness of vaccines; and the impact on our current and prospective customers, employees, and partners; all of which are uncertain and cannot be predicted at this time. While we have developed and continue to develop plans to help mitigate the negative impact of the pandemic on our business, these efforts may not be effective and any protracted economic downturn may limit the effectiveness of our mitigation efforts. In addition, even after the immediate impacts of the pandemic on the global economy and our business subside, the residual effects of the pandemic may present additional challenges to our business that are currently difficult to predict. We are continuing to monitor the actual and potential effects of the COVID-19 pandemic on our business. See Part II, Item 1A, “Risk Factors” for further discussion of the possible impact of the COVID-19 pandemic on our business.
Factors Affecting Our Performance
We believe that our future performance will depend on many factors, including those described below. While these areas present significant opportunity, they also present risks that we must manage to achieve successful results. See Part II, Item 1A, “Risk Factors”. If we are unable to address these challenges, our business and operating results could be adversely affected.
Market adoption of our platform.    Our long-term success will depend on widespread adoption of Connected Planning by enterprises for numerous planning applications with broad use of those applications within their organizations. While we believe that we are still in the early stages of penetrating our addressable market, we have benefited from rapid customer growth.
Customer First strategy.    We put the success of our customers at the center of our culture, strategy, and investments. We view our Customer First strategy as core to capturing our Connected Planning vision and driving the continued adoption and expansion in the use of our platform. By aligning our thought leadership, worldwide development and delivery capabilities, and local sales and service resources, our Customer First strategy drives exceptional value throughout our customers’ Connected Planning and digital transformation journeys. Our continued success depends in part on our ability to continue to put customers at the center of our strategy.
Expansion of existing customers.    We employ a “land and expand” approach, with many of our customers initially deploying our product for a specific use case and group of users. Once they realize the benefits and wide applicability of our platform, many of our customers subsequently renew their subscriptions and expand the number of users or use cases within and across lines of business and geographies as they continue unlocking the agile enterprise planning and operating model across functional boundaries. As a result, we are able to generate a significant increase in revenue from the expanded use of our platform across the enterprise. Going forward we are focused on targeting customers where the opportunity for expansion and need for our planning solutions are greatest. Our future revenue growth and our ability to achieve and maintain profitability is dependent upon our ability to maintain existing customer relationships and to continue to expand our customers’ use of our platform.
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Scaling our sales team.    Our ability to achieve significant growth in revenue in the future will depend, in large part, upon the effectiveness of our sales leadership and sales efforts, both domestically and internationally. We have invested and intend to continue to invest in expanding and retaining our sales leadership and direct sales force, particularly in attracting and retaining sales personnel with experience selling to larger enterprises. Our ability to increase our revenue will depend on the new members of our sales force becoming fully productive and executing expeditiously and effective sales leadership. A customer’s decision to use our platform may be an enterprise-wide decision. These types of sales require us to provide greater levels of education regarding the use and benefits of our platform, which involves substantial time, effort, and costs.
International sales.