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Pelosi to Speak on Trump Impeachment, Biden on Vaccine and Economy: Live Updates – The New York Times

https://www.nytimes.com/live/2021/01/15/us/impeachment-trump

Pelosi to Speak on Trump Impeachment, Biden on Vaccine and Economy: Live Updates - The New York Times
Speaker Nancy Pelosi signing the article of impeachment on Wednesday. She has discretion over when to transmit the article, formally starting the Senate proceeding.
Credit…Anna Moneymaker for The New York Times

As Washington eagerly awaited answers Friday morning about the timing and scope of President Trump’s impeachment trial, Speaker Nancy Pelosi addressed reporters in the Capitol about when she planned to send the charge to the Senate.

Ms. Pelosi’s weekly news conference at 11:30 a.m. was the first time the California Democrat has fielded questions since the House impeached Mr. Trump on Wednesday for inciting a violent insurrection at the Capitol as he sought to overturn President-elect Joseph R. Biden Jr.’s election victory.

Democrats, poised to take unified power in Washington next week for the first time in a decade, worked with Republican leaders to try to find a proposal to allow the Senate to split time between the impeachment trial of Mr. Trump and consideration of Mr. Biden’s agenda, including his cabinet nominees and a $1.9 trillion economic recovery plan he proposed on Thursday to address the coronavirus. But they were virtually silent in public about their plans.

Although Senator Mitch McConnell, Republican of Kentucky and the majority leader, has privately told advisers that he approves of the impeachment drive and believes it could help his party purge itself of Mr. Trump, he refused to begin the proceedings this week while he is still in charge. That means the trial will not effectively start until after Mr. Biden is sworn in on Wednesday, officials involved in the planning said.

It has also left Democrats weighing whether to bring their case to the Senate immediately, potentially handicapping Mr. Biden’s first few days in office and distracting from his inauguration, or waiting until a few days after he is sworn in. The latter option may be more appealing to Mr. Biden, but it could undercut Democrats’ argument that Congress must move urgently to impeach and try Mr. Trump.

With Republicans fractured after the president’s exhortations to supporters to reject his defeat inspired a rampage, many of them were trying to gauge the dynamics of a vote to convict Mr. Trump. Doing so would open the door to disqualifying him from holding office in the future.

A cautionary tale was playing out in the House, where a faction of Mr. Trump’s most ardent allies was working to topple Representative Liz Cheney of Wyoming, the No. 3 Republican, from her leadership post. Ms. Cheney had joined nine other members of the party who voted with Democrats to charge the president with “incitement of insurrection.”

Most Senate Republicans stayed publicly silent about their positions. But Senator Lisa Murkowski, Republican of Alaska and one of the president’s leading critics, signaled on Thursday that she was among a small group in her party so far considering convicting Mr. Trump.

It remained unclear whether the 17 Republican senators whose votes would be needed to convict Mr. Trump by the requisite two-thirds majority would agree to find him guilty.

Emily Cochrane contributed reporting.

A makeshift memorial for Officer Brian Sicknick, who was killed by the pro-Trump mob that stormed the Capitol.
Credit…Anna Moneymaker for The New York Times

The F.B.I. is investigating 37 people related to the killing of Officer Brian Sicknick, the Capitol Police officer who died after being injured during the pro-Trump riot on Jan. 6, according to an F.B.I. memo sent to the private sector and others on Friday. The Times obtained a copy of the report.

Mr. Sicknick was struck with a fire extinguisher as a violent mob flooded the halls of Congress, according to two law enforcement officials. Lawmakers hid under their desks from violent protesters after President Trump encouraged them during a rally to head to the Capitol. Mr. Sicknick died in the hospital where he was getting treatment for his injuries.

Fourteen other Capitol Police officers were injured in the mob last week, the memo said.

Law enforcement officials are bracing for more unrest in the days leading up to the inauguration.

Since the Jan. 6 siege, intelligence officials have seen Chinese, Iranian and Russian efforts to fan the violent rhetoric, according to a joint threat assessment dated Thursday. The amplification is consistent with previous efforts to take advantage of divisive Republican rhetoric, such as the Russian efforts to amplify disinformation spread by Mr. Trump during the campaign about the security of mail-in voting.

The inspectors general for several federal agencies, including the departments of Justice and Homeland Security, announced on Friday that they had opened an investigation into the response to the riot at the Capitol. The watchdogs will also look at how federal agencies shared intelligence ahead of the riot.

Zolan Kanno-Youngs and Julian E. Barnes contributed reporting.

A Capitol police officer looked out onto the inauguration stage. The investigation will examine whether key information about the rioters’ plans was shared with the Capitol Police and other agencies.
Credit…Anna Moneymaker for The New York Times

Inspectors general from a range of federal agencies are opening a coordinated investigation into the catastrophic failures that led to the riot at the Capitol on Jan. 6, amid reports that officials ignored, downplayed and responded sluggishly to a deadly assault on the nation’s core democratic institutions.

Government watchdogs, who are shielded from political interference under federal law, said on Friday that they planned to review the protocols, and policies that were in place in the lead-up to last week’s breach.

Their goal: To determine why the federal government was caught flat-footed when pro-Trump rioters attacked Congress, and come up with protocols to prevent similar failures in dealing with a dramatic escalation in political violence in Washington and in state capitols.

The review will be jointly conducted by the inspectors general from the Justice Department, the Department of Defense, the Department of Homeland Security and the Department of the Interior, according to a statement from the office of Michael E. Horowitz, the Justice Department inspector general.

In the days following the attack, it has become clear that federal agencies, including the F.B.I., did not do enough to heed alarms, raised within the bureau itself, that far-right extremists allied with President Trump planned to attack the Capitol. Several people on a terrorist watch list were also in Washington for the rally by Mr. Trump that devolved into the assault.

At the same time, questions have arisen about the Pentagon’s delay in sending national guard troops to help Capitol Police officers who were overwhelmed and, in some cases, badly beaten by the mob.

The review will examine all of the information relevant to the that was available to the Justice Department and the F.B.I. before it took place, and the extent to which that information was shared with the Capitol Police and other federal, state and local agencies.

Mr. Horowitz will also review what role Justice Department personnel had in responding to the siege, and whether weaknesses in the department’s protocols led to the security failure.

The Department of Defense review “will examine requests for D.O.D. support leading up to the planned protest and its aftermath at the U.S. Capitol complex, the D.O.D.’s response, and whether the D.O.D.’s actions were lawful” the Pentagon’s inspector general wrote in a statement on Friday.

The new probe comes after the announcement earlier this week that the inspector general from the Capitol Police will initiate a separate investigation into the failures by the force to contain the violence. The Government Accountability Office, a nonpartisan federal watchdog agency, signaled that it would look into what role, if any, members of Congress may have played in inciting the mob.

Led by Representative Mikie Sherrill, a New Jersey Democrat and former Navy pilot, more than 30 lawmakers on Wednesday called for an investigation into an uptick of visits to the Capitol — perhaps for the purpose of surveillance and planning — the day before the riot.

President-elect Joseph R. Biden Jr. unveiled his plan to fight the coronavirus and improve the economy in a speech in Wilmington, Del.
Credit…Amr Alfiky/The New York Times

As the fallout from the assault on the Capitol sparks fresh concerns of new violence and Washington heightens security ahead of Joseph R. Biden Jr.’s inauguration on Jan. 20, the president-elect is gearing up to assume office at a tenuous moment for the nation.

Mr. Biden unveiled an ambitious $1.9 trillion spending package on Thursday night, intended to help combat the coronavirus pandemic and its effects on the economy. He has signaled that he will prioritize domestic issues during his first weeks in office even as the pending trial of President Trump may sidetrack the Senate from his priorities, including approving his cabinet nominees.

Speaking from Delaware on Thursday to introduce his sweeping economic plan, Mr. Biden urged lawmakers to come together and pass additional relief.

“Unity is not some pie in the sky dream,” he said. “It’s a practical step to getting the things we have to get done as a country, get done together.”

Mr. Biden’s plan has an initial focus on large-scale expansions of the nation’s vaccination program and virus testing capacity. In remarks scheduled for Friday afternoon, he is expected to give additional details about his plan to vaccinate Americans.

And as investigations continue, federal officials have moved to arrest dozens of Americans who rioted at the Capitol last week. A man seen holding a Confederate battle flag, a person identified as striking a police officer with a flagpole and a retired firefighter identified as having thrown a fire extinguisher at officers were among those arrested on Thursday.

Also on Thursday, in a briefing with Vice President Mike Pence, Christopher A. Wray, the director of the F.B.I., acknowledged that in the aftermath of the assault on the Capitol, the bureau was “seeing an extensive amount of concerning online chatter” surrounding the inauguration, including plans for armed protests both in Washington and at state capitol buildings around the country.

Gov. Gavin Newsom of California on Thursday authorized the deployment of 1,000 National Guard troops and surrounded the state Capitol grounds in Sacramento with a six-foot, covered chain-link fence to “prepare for and respond to credible threats.”

Mr. Biden has spoken little about the threats to his inauguration, saying earlier this week only that he was “not afraid” to take the oath of office outdoors as planned. With less than a week to go, Mr. Wray and federal law enforcement officials sought to assure the public that Mr. Biden’s inauguration would be safe.

The Secret Service, which is leading the effort to secure the inauguration, said on Thursday that it would establish a “green zone” in downtown Washington this weekend, blocking streets surrounding the Capitol and Lincoln Memorial and shutting down train lines. National Guard troops continue to flood into the increasingly militarized city, with a total of 20,000 expected to be present for Inauguration Day.

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transcript

Biden Outlines $1.9 Trillion Economic Rescue Package

President-elect Joseph R. Biden Jr. on Thursday proposed a spending package to combat the economic downturn caused by the coronavirus. The plan includes $1,400 direct payments to individuals and more generous unemployment benefits.

During this pandemic, millions of Americans, through no fault of their own, have lost the dignity and respect that comes with a job and a paycheck. Millions of Americans never thought they’d be out of work — many of them never even envisioned the idea — are facing eviction, waiting for hours in their cars to feed their families as they drive up to a food bank. A growing chorus of top economists agree that the moment of crisis — in this moment of crisis, with interest rates at historic lows, we cannot afford inaction. Our rescue plan also includes immediate relief to Americans hardest hit and most in need. We will finish the job of getting a total of $2,000 in cash relief to people who need it the most. The $600 already appropriated is simply not enough. One in seven households in America, more than one in five Black and Latino households in America, report they don’t have enough food to eat. So we’re going to extend emergency nutritional assistance for 30 — for 43 million children and their families enrolled in the SNAP program through the rest of this year. To the millions of you just looking for a fighting chance in this economy, I promise you, we will not forget you. We understand what you’re going through. We will never, ever give up.

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President-elect Joseph R. Biden Jr. on Thursday proposed a spending package to combat the economic downturn caused by the coronavirus. The plan includes $1,400 direct payments to individuals and more generous unemployment benefits.CreditCredit…Amr Alfiky/The New York Times

President-elect Joseph R. Biden Jr. on Thursday proposed a $1.9 trillion rescue package to combat the economic downturn and the Covid-19 crisis, outlining the type of sweeping aid that Democrats have demanded for months and signaling the shift in the federal government’s pandemic response as Mr. Biden prepares to take office next week.

The package includes more than $400 billion to combat the pandemic directly, including money to accelerate vaccine deployment and to safely reopen most schools within 100 days. An additional $350 billion would help state and local governments bridge budget shortfalls, while the plan would also include $1,400 direct payments to individuals, more generous unemployment benefits, federally mandated paid leave for workers and large subsidies for child care costs.

“During this pandemic, millions of Americans, through no fault of their own, have lost the dignity and respect that comes with a job and a paycheck,” Mr. Biden said in a speech to the nation on Tuesday evening. “There is real pain overwhelming the real economy.”

He acknowledged the high price tag but said the nation could not afford to do anything less. “The very health of our nation is at stake,” Mr. Biden said, speaking from Delaware. “We have to act and we have to act now.”

Here are some of the highlights of Mr. Biden’s so-called American Rescue Plan:

  • The “rescue” proposal would be financed entirely through increased federal borrowing, and flows from the idea that the virus and the recovery are intertwined.

  • The $20 billion “national vaccine program” he announced envisions nationwide community vaccination centers.

  • He also called for a “public health jobs program” that would address his goals of bolstering the economy and the coronavirus response while also rebuilding the nation’s public health infrastructure. The proposal would fund 100,000 public health workers to engage in vaccine outreach and contact tracing.

  • To address the racial disparities in health exposed by the coronavirus pandemic, which has disproportionately claimed the lives of people of color, he pledged to increase funding for community health centers, and also intends to fund efforts to mitigate the pandemic in prisons and jails, where African-Americans and Latinos are overrepresented.

  • Mr. Biden proposed a wide range of efforts to help those who have suffered the most under the economic shutdowns, including emergency paid leave to 106 million Americans, regardless of the size of their employer, and extending tax credits to many families to offset up to $8,000 in annual child care costs.

  • The plan gives billions of dollars in aid to renters struggling to keep up with mounting unpaid liabilities to landlords, and it would give grants to millions of the hardest-hit small businesses.

  • The proposal would temporarily increase the size of two tax credits in a manner that would effectively provide more cash from the government to low-income workers and families.

  • Mr. Biden called on Congress to raise the federal minimum wage to $15 an hour, and he proposed extending expanded unemployment benefits through the end of September, with an extra $400 weekly supplement.

Senator James Lankford, Republican of Oklahoma, in October. He has apologized for trying to reverse the results of the presidential election and disenfranchise tens of millions of voters.
Credit…Anna Moneymaker for The New York Times

Senator James Lankford, an Oklahoma Republican who spent weeks trying to reverse the results of the presidential election before changing his mind at the last moment, apologized on Thursday to Black constituents who felt he had attacked their right to vote.

In a letter addressed to his “friends” in North Tulsa, which has many Black residents, Mr. Lankford, who is white, wrote on Thursday that his efforts to challenge the election result had “caused a firestorm of suspicion among many of my friends, particularly in Black communities around the state.”

“After decades of fighting for voting rights, many Black friends in Oklahoma saw this as a direct attack on their right to vote, for their vote to matter, and even a belief that their votes made an election in our country illegitimate,” he wrote, according to the news site Tulsa World.

Mr. Lankford said in the letter that he had never intended to “diminish the voice of any Black American.” Still, he added, “I should have recognized how what I said and what I did could be interpreted by many of you.”

Mr. Lankford, who sits on a key Senate oversight committee, was initially one of the Republicans who tried to upend Joseph R. Biden Jr.’s victory, even as courts threw out baseless questions raised by President Trump and his allies about election malfeasance.

Democrats in Congress have viewed Mr. Lankford as a rare, cooperative partner on voting rights, and his decision to join those Republicans seeking to disenfranchise tens of millions of voters — many of them Black citizens living in Philadelphia, Detroit, Milwaukee and Atlanta — came as a surprise.

The first indication he might do so came during his appearance in December at a Senate hearing about alleged voting “irregularities,” when he repeated unsupported Trump campaign allegations about voting in Nevada that had been debunked in court nearly two weeks earlier.

Mr. Lankford and other Republicans had claimed that by challenging the election results, they were exercising their independence and acting in the interests of constituents who were demanding answers.

“There are lots of folks in my state that still want those answers to come out,” Mr. Lankford said a few days before the Electoral College vote was certified.

After the riot at the Capitol, Mr. Lankford was one of several Republican senators who abandoned their earlier challenge, saying the lawlessness and chaos had caused them to changed their minds.

In a joint statement that night with Senator Steve Daines, Republican of Montana, Mr. Lankford called on “the entire Congress to come together and vote to certify the election results.”

Mr. Lankford has faced calls from Black leaders to resign from the 1921 Tulsa Race Massacre Centennial Commission, which is designed to commemorate the racist massacre in the city’s Greenwood district, an affluent Black community known as Black Wall Street. The massacre, which took place 100 years ago this spring, was one of the worst instances of racist violence in American history. A white mob destroyed the neighborhood and its Black-owned businesses, and up to 300 residents were killed.

Deanne Criswell, commissioner of the New York City Emergency Management Department, has coordinated the city’s response to the Covid-19 pandemic. Ms. Criswell has been nominated as FEMA Administrator.
Credit…Benjamin Norman for The New York Times

President-elect Joseph R. Biden Jr. continued to fill out his administration on Friday, turning to former Obama administration officials to take on key roles.

He tapped Deanne Criswell, currently the commissioner of New York City’s Emergency Management Department, to lead the Federal Emergency Management Agency. If confirmed, she will help oversee the federal government’s pandemic response efforts.

Ms. Criswell previously worked at FEMA from 2011 to 2017 where she led the federal response to emergencies and disasters. She is also a member of the Colorado Air National Guard, where she served as a firefighter and deputy fire chief. She has deployed to Kuwait, Qatar, Afghanistan and Iraq on firefighting missions.

Mr. Biden on Friday also chose David S. Cohen to return to the C.I.A. as deputy director, a role he filled from 2015 to 2017. Previously, Mr. Cohen was the under secretary for terrorism and financial intelligence in the Treasury Department. While there, he oversaw sanctions — intelligence-based actions that play a large role in national security — against Iran, Russia, North Korea and terrorist organizations.

And Mr. Biden has chosen Anita Dunn, a top strategist for his presidential campaign last year and for former President Barack Obama’s 2008 campaign, to be a White House senior strategist. Ms. Dunn is a partner at the Washington consulting firm SKDKnickerbocker and was a senior adviser to former Senate Democratic Leader Tom Daschle.

Other officials named on Friday include:

  • Shalanda Young, the staff director and clerk for the powerful House Appropriations Committee, was nominated to be deputy director of the Office of Management and Budget.

  • Jason Miller, a former Obama administration official who served as deputy director of the National Economic Council, was nominated to be the deputy director for management at the White House Office of Management and Budget.

  • Janet McCabe, who specializes in environmental law and policy and worked at the Environmental Protection Agency during the Obama administration, was nominated to be the agency’s deputy administrator.

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Peak Design claims Amazon copied its Everyday Sling bag – The Verge

https://www.theverge.com/2021/3/3/22311574/peak-design-video-amazon-copy-everyday-sling-bag

Peak Design claims Amazon copied its Everyday Sling bag - The Verge

Peak Design, a maker of fine bags and accessories, has a problem: Amazon appears to have copied its popular bag, the $99.95 Everyday Sling, with its own $32.99 Amazon Basics Camera Bag. It was even called Everyday Sling until Peak Design’s video. Rather than do anything drastic, yet, Peak Design decided to make a video about what customers “gain” by purchasing Amazon’s version.

The video presents Peak’s case clearly: the bags are similarly shaped, with pockets, labels, and straps in the exact same places. As someone unfamiliar with Peak Design’s bags, if I wasn’t paying attention or didn’t read “Peak Design” on the label, I’d probably mix them up.

Peak Design claims Amazon copied its Everyday Sling bag - The Verge

The Amazon Basics Everyday Sling on the left and Peak Design’s Everyday Sling on the right.
Image: Peak Design

Peak presents all of this humorously, but the evidence is surprisingly blatant, which makes Amazon’s apparent decision to change its Amazon Basics version from “Everyday Sling” to “Amazon Basics Camera Bag” all the more suspicious. There’s even evidence: “Everyday Sling” is still in the URL for the “Camera Bag.”

Peak Design isn’t the first smaller company to try to stand up to Amazon. When Allbirds discovered Amazon was selling what looked like a pretty obvious Allbirds clone, the company’s CEO wrote a Medium post criticizing Amazon, even though he claimed he was “flattered” by the similarities between the shoes. Amazon’s copying hasn’t stopped there. The company’s also been accused of cloning car trunk organizers and seat cushions.

Peak Design claims Amazon copied its Everyday Sling bag - The Verge

Peak Design claims Amazon copied its Everyday Sling bag - The Verge

Amazon and Allbirds’ shoes compared.
Image: Amazon and Image: Allbirds

The whole trend has only served to draw attention to a potential antitrust issue that’s long concerned the company’s critics, as well as lawmakers and regulators. The basic problem: Amazon owns and operates its e-commerce platform and also runs an ever-growing list of in-house brands that compete against Amazon’s own third-party Marketplace sellers on that same platform.

Undercutting the competition is as simple, in theory, as seeing what’s selling well, creating a similar, cheaper product, and then suggesting it to Amazon shoppers. In fact, that very situation is at the heart of a European Union investigation into the company’s operations, which resulted in the European Commission accusing Amazon of “systematically” using seller data to unfairly compete against its own merchants in France and Germany last November.

Amazon says it has a policy in place to prevent third-party seller data from being used for products, but reporting from The Wall Street Journal suggests it’s still happened. As Vice notes, even former CEO Jeff Bezos was unable to confirm if the policy had been broken during the House Judiciary Committee’s investigation into Amazon’s monopoly status.

In Peak Design’s case, the company said in a statement to The Verge it believes Amazon has actually infringed on its intellectual property, but it chose to make the video to highlight the differences between the products and has no plans to take legal action now.

Reviews are currently disabled on Amazon’s bag because the company noticed “unusual reviewing activity.” Looking at some of the newest reviews, several of the lowest ratings have been left by customers directly referencing Peak Design’s video. Taken with Amazon’s decision to change the product’s name, it seems like Peak Design has struck a cord.

The Verge contacted Amazon about Peak Design’s claim and we will update if we receive a response.

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Stock futures decline, after major averages dip amid rising bond yields – CNBC

https://www.cnbc.com/2021/03/03/stock-market-open-to-close-news.html

Stock futures decline, after major averages dip amid rising bond yields - CNBC

U.S. stock index futures slid during overnight trading on Wednesday, accelerating losses from the regular trading session which saw the major averages finish in the red across the board.

Futures contracts tied to the Dow Jones Industrial Average dipped 30 points. S&P 500 futures and Nasdaq 100 futures declined 0.24% and 0.38%, respectively.

Stocks posted heavy losses during regular trading as rising bond yields spooked investors. The S&P 500 dipped 1.3%, while the Dow Jones Industrial Average closed 119 points, or 0.38%, lower. The Nasdaq Composite was the relative underperformer, falling 2.7% as tech names declined. The index is on track to post its third straight negative week — the longest weekly losing streak since September.

The weakness came as the 10-year Treasury yield extended gains. The benchmark rate climbed to a high of 1.49% on Wednesday before retreating slightly. Last week, the yield surged to a high of 1.6% in a move that some described as a “flash” spike.

“Our current strategy work suggests robust economic growth this year with a modest increase in inflation,” noted Scott Wren, senior global equity strategist at Wells Fargo Investment Institute. “In attempting to read the tea leaves, the steepening of the yield curve, in our opinion, reflects the market’s belief that growth and inflation should continue to move back toward appropriate levels as the pandemic eases. We view this as a positive for stocks and other risk assets, like commodities,” he added.

During Wednesday’s session, one bright spot was companies tied to the economy’s reopening. Shares of airline and cruise line operators advanced after President Joe Biden said Tuesday that the U.S. will have enough Covid-19 vaccines for all adults by the end of May.

Additional stimulus measures could also inject optimism into the market. The Senate is currently debating the $1.9 trillion relief package passed by the House on Saturday.

“Our macro team sees the economy as spring loaded given the vaccinations and additional stimulus,” Keith Lerner, Truist chief market strategist, wrote in a note to clients. “The ability and desire of the consumer to spend on services and experiences should lead to the best economic growth we have seen in over 35 years.”

On Thursday investors will get another look at the ongoing economic recovery when first-time jobless claims data for the week ending Feb. 27 is released. Economists surveyed by Dow Jones are forecasting 750,000 first-time filers.

On the earnings front, BJ’s Wholesale and Kroger are among the names reporting before the open, while Broadcom, Costco and Gap are on deck to provide quarterly updates after the closing bell.

Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.

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Machine Gun Kellys Drummer Robbed and Hit by Car, Hospitalized – TMZ

https://www.tmz.com/2021/03/03/machine-gun-kelly-drummer-rook-robbed-hit-by-car-hospitalized/

Machine Gun Kellys Drummer Robbed and Hit by Car, Hospitalized - TMZ

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Maroon 5 Singer Is Sad That “Theres No Bands Anymore” – Stereogum

https://www.stereogum.com/2118155/maroon-5-singer-is-sad-that-theres-no-bands-anymore/news/

Maroon 5 Singer Is Sad That “Theres No Bands Anymore” - Stereogum

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Snowflake Reports Financial Results for the Fourth Quarter and Full Year of Fiscal 2021 – Yahoo Finance

https://finance.yahoo.com/news/snowflake-reports-financial-results-fourth-210100612.html

Snowflake Reports Financial Results for the Fourth Quarter and Full Year of Fiscal 2021 - Yahoo Finance
  • Product revenue of $178.3 million in the fourth quarter, representing 116% year-over-year growth

  • Remaining performance obligations of $1.3 billion, representing 213% year-over-year growth

  • 4,139 total customers

  • Net revenue retention rate of 168%

  • 77 customers with trailing 12-month product revenue greater than $1 million

Snowflake (NYSE: SNOW), the Data Cloud company, today announced financial results for its fourth quarter and full year of fiscal 2021, ended January 31, 2021.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210303005871/en/

Snowflake Reports Financial Results for the Fourth Quarter and Full Year of Fiscal 2021 - Yahoo FinanceSnowflake Reports Financial Results for the Fourth Quarter and Full Year of Fiscal 2021 - Yahoo Finance

Snowflake FY21 Q4 and Full Year Earnings Infographic (Graphic: Snowflake)

Revenue for the quarter was $190.5 million, representing 117% year-over-year growth. Product revenue for the quarter was $178.3 million, representing 116% year-over-year growth. Remaining performance obligations were $1.3 billion, representing 213% year-over-year growth. Net revenue retention rate was 168% as of January 31, 2021. The company now has 4,139 total customers and 77 customers with trailing 12-month product revenue greater than $1 million. See the section titled “Key Business Metrics” for definitions of product revenue, remaining performance obligations, net revenue retention rate, total customers, and customers with trailing 12-month product revenue greater than $1 million.

“We finished our fiscal year with strong performance and reported triple-digit product revenue growth,” said Snowflake CEO, Frank Slootman. “Remaining performance obligations showed a robust increase year-on-year, reflecting strength in sales across the board. Coupled with this rapid growth, we saw improving operating efficiency while expanding our footprint globally. These results indicate that customers across multiple industries rely on the Snowflake Data Cloud to mobilize their data and enable breakthrough data strategies.”

Fourth Quarter Fiscal 2021 GAAP and Non-GAAP Results:

The following table summarizes our financial results for the fourth quarter of fiscal 2021:

Fourth Quarter Fiscal 2021
GAAP Results

Fourth Quarter Fiscal 2021
Non-GAAP Results(1)

Amount
(millions)

Year/Year
Growth

Product revenue

$178.3

116%

Amount
(millions)

Margin

Amount
(millions)

Margin

Product gross profit

$114.5

64%

$125.3

70%

Operating loss

($200.4)

(105%)

($46.0)

(24%)

Net cash provided by operating activities

$19.6

Free cash flow

$7.3

4%

Adjusted free cash flow

$17.3

9%

(1) We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section entitled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP financial measures, and the table entitled “GAAP to Non-GAAP Reconciliations” for a reconciliation of GAAP to non-GAAP financial measures.

Note: Fiscal year ends January 31. Numbers are rounded for presentation purposes.

Full-Year Fiscal 2021 GAAP and Non-GAAP Results:

The following table summarizes our financial results for the full-year fiscal 2021:

Full-Year Fiscal 2021
GAAP Results

Full-Year Fiscal 2021
Non-GAAP Results(1)

Amount
(millions)

Year/Year
Growth

Product revenue

$553.8

120%

Amount
(millions)

Margin

Amount
(millions)

Margin

Product gross profit

$360.0

65%

$380.4

69%

Operating loss

($543.9)

(92%)

($224.9)

(38%)

Net cash used in operating activities

($45.4)

Free cash flow

($85.7)

(14%)

Adjusted free cash flow

($71.6)

(12%)

(1) We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section entitled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP financial measures, and the table entitled “GAAP to Non-GAAP Reconciliations” for a reconciliation of GAAP to non-GAAP financial measures.

Note: Fiscal year ends January 31. Numbers are rounded for presentation purposes.

Financial Outlook:

Our guidance includes GAAP and non-GAAP financial measures.

The following table summarizes our guidance for the first quarter of fiscal 2022:

First Quarter Fiscal 2022
GAAP Guidance

First Quarter Fiscal 2022
Non-GAAP Guidance(1)

Amount
(millions)

Year/Year
Growth

Product revenue

$195 – $200

92 – 96%

Margin

Operating loss

(23%)

Amount
(millions)

Weighted-average shares used to compute diluted net loss per share attributable to common stockholders – basic and diluted

289

(1) We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section entitled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP financial measures.

The following table summarizes our guidance for the full-year fiscal 2022:

Full-Year Fiscal 2022
GAAP Guidance

Full-Year Fiscal 2022
Non-GAAP Guidance(1)

Amount
(millions)

Year/Year
Growth

Product revenue

$1,000 – $1,020

81 – 84%

Margin

Product gross profit

71%

Operating loss

(19%)

Adjusted free cash flow

0%

Amount
(millions)

Weighted-average shares used to compute diluted net loss per share attributable to common stockholders – basic and diluted

295

(1) We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section entitled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP financial measures.

A reconciliation of non-GAAP guidance measures to corresponding GAAP guidance measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. Stock-based compensation expense-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change. We have provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for our historical non-GAAP financial results included in this press release. Our fiscal year ends January 31, and numbers are rounded for presentation purposes.

Conference Call Details

We will host a conference call today, beginning at 2 p.m. Pacific Time on March 3, 2021. Investors and participants can register for the call in advance by visiting http://www.directeventreg.com/registration/event/3553798. After registering, a confirmation will be sent via email, including dial-in details and unique conference call access codes required for call entry.

The call will also be webcast live on the Snowflake Investor Relations website.

An audio replay of the conference call and webcast will be available two hours after its completion and will be accessible for 30 days on the Snowflake Investor Relations website.

Investor Presentation Details

An investor presentation providing additional information and analysis can be found at https://investors.snowflake.com.

Statement Regarding Use of Non‑GAAP Financial Measures

We report the following non-GAAP financial measures, which have not been prepared in accordance with generally accepted accounting principles in the United States (GAAP), in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

  • Product gross profit and Operating income (loss). Our non-GAAP product gross profit and operating income (loss) measures exclude the effect of stock-based compensation expense-related charges, including employer payroll tax-related items on employee stock transactions, amortization of acquired intangibles, and expenses associated with acquisitions and strategic investments. We believe the presentation of operating results that exclude these non-cash or non-recurring items provides useful supplemental information to investors and facilitates the analysis of our operating results and comparison of operating results across reporting periods.

  • Free cash flow and Adjusted free cash flow. Free cash flow is defined as net cash provided by (used in) operating activities reduced by purchases of property and equipment and capitalized internal-use software development costs. Adjusted free cash flow is defined as free cash flow plus cash paid on employer payroll tax-related items on employee stock transactions. Free cash flow margin and adjusted free cash flow margin are calculated as free cash flow or adjusted free cash flow as a percentage of revenue. We believe these measures provide useful supplemental information to investors because they are indicators of the strength and performance of our core business operations.

We use these non-GAAP financial measures internally for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Our presentation of non-GAAP financial measures may not be comparable to similar measures used by other companies. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand our business. Please see the tables included at the end of this release for the reconciliation of GAAP to non-GAAP results.

Key Business Metrics

  • Product Revenue. Product revenue is a key metric for us because we recognize revenue based on platform consumption, which is inherently variable at our customers’ discretion, and not based on the amount and duration of contract terms. Product revenue includes compute, storage, and data transfer resources, which are consumed by customers on our platform as a single, integrated offering. Customers have the flexibility to consume more than their contracted capacity during the contract term and may have the ability to roll over unused capacity to future periods, generally on the purchase of additional capacity at renewal. Our consumption-based business model distinguishes us from subscription-based software companies that generally recognize revenue ratably over the contract term and may not permit rollover. Because customers have flexibility in the timing of their consumption, which can exceed their contracted capacity or extend beyond the original contract term in many cases, the amount of product revenue recognized in a given period is an important indicator of customer satisfaction and the value derived from our platform. Product revenue excludes our professional services and other revenue.

  • Remaining Performance Obligations. Remaining performance obligations (RPO) represent the amount of contracted future revenue that has not yet been recognized, including both deferred revenue and non-cancelable contracted amounts that will be invoiced and recognized as revenue in future periods. RPO excludes performance obligations from on-demand arrangements and certain time and materials contracts that are billed in arrears. RPO is not necessarily indicative of future product revenue growth because it does not account for the timing of customers’ consumption or their consumption of more than their contracted capacity. Moreover, RPO is influenced by a number of factors, including the timing of renewals, the timing of purchases of additional capacity, average contract terms, seasonality, and the extent to which customers are permitted to roll over unused capacity to future periods, generally upon the purchase of additional capacity at renewal.

  • Total Customers. We count the total number of customers at the end of each period. For purposes of determining our customer count, we treat each end-customer account that has at least one corresponding capacity contract or order form as a unique customer, and a single organization with multiple divisions, segments, or subsidiaries may be counted as multiple customers. For purposes of determining our customer count, we do not include customers that consume our platform only under on-demand arrangements. Our customer count is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity.

  • Net Revenue Retention Rate. To calculate net revenue retention rate, we first specify a measurement period consisting of the trailing two years from our current period end. Next, we define as our measurement cohort the population of customers under capacity contracts that used our platform at any point in the first month of the first year of the measurement period. We then calculate our net revenue retention rate as the quotient obtained by dividing our product revenue from this cohort in the second year of the measurement period by our product revenue from this cohort in the first year of the measurement period. Any customer in the cohort that did not use our platform in the second year remains in the calculation and contributes zero product revenue in the second year. Our net revenue retention rate is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity. Since we will continue to attribute the historical product revenue to the consolidated contract, consolidation of capacity contracts within a customer’s organization typically will not impact our net revenue retention rate unless one of those customers was not a customer at any point in the first month of the first year of the measurement period.

  • Customers with Trailing 12-Month Product Revenue Greater than $1 Million. To calculate the number of customers with trailing 12-month product revenue greater than $1 million, we count the number of customers under capacity arrangements that contributed more than $1 million in product revenue in the trailing 12 months. Our customer count is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity.

Use of Forward‑Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding our performance, including but not limited to statements in the section titled “Financial Outlook.” The forward-looking statements contained in this release and the accompanying oral presentation are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results or outcomes to be materially different from any future results or outcomes expressed or implied by the forward-looking statements. These risks, uncertainties, assumptions, and other factors include, but are not limited to, those related to our business and financial performance, the effects of COVID-19 or other public health crises on our business, results of operations, and financial condition, our ability to attract and retain customers, our ability to develop new products and services and enhance existing products and services, our ability to respond rapidly to emerging technology trends, our ability to execute on our business strategy, including our strategy related to the Data Cloud, our ability to increase and predict customer consumption of our platform, our ability to compete effectively, and our ability to manage growth.

Further information on these and additional risks, uncertainties, and other factors that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this release are included under the caption “Risk Factors” and elsewhere in our Form 10-Q for the fiscal quarter ended October 31, 2020 and other filings and reports we make with the Securities and Exchange Commission from time to time, including our Form 10-K that will be filed for the fiscal year ended January 31, 2021.

Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for us 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 or outcomes to differ materially from those contained in any forward-looking statements we may make. Forward-looking statements speak only as of the date the statements are made and are based on information available to us at the time those statements are made and/or management’s good faith belief as of that time with respect to future events. Except as required by law, we undertake no obligation, and do not intend, to update these forward-looking statements, to review or confirm analysts’ expectations, or to provide interim reports or updates on the progress of the current financial quarter.

About Snowflake

Snowflake delivers the Data Cloud — a global network where thousands of organizations mobilize data with near-unlimited scale, concurrency, and performance. Inside the Data Cloud, organizations unite their siloed data, easily discover and securely share governed data, and execute diverse analytic workloads. Wherever data or users live, Snowflake delivers a single and seamless experience across multiple public clouds. Snowflake’s platform is the engine that powers and provides access to the Data Cloud, creating a solution for data warehousing, data lakes, data engineering, data science, data application development, and data sharing. Join Snowflake customers, partners, and data providers already taking their businesses to new frontiers in the Data Cloud at Snowflake.com.

Source: Snowflake Inc.

Snowflake Inc.

Condensed Consolidated Statements of Operations

(in thousands, except share and per share data)

(unaudited)

Three Months Ended January 31,

Twelve Months Ended January 31,

2021

2020

2021

2020

Revenue

$

190,465

$

87,692

$

592,049

$

264,748

Cost of revenue

82,904

34,522

242,588

116,557

Gross profit

107,561

53,170

349,461

148,191

Operating expenses:

Sales and marketing

154,050

80,444

479,317

293,577

Research and development

93,997

29,709

237,946

105,160

General and administrative

59,911

28,129

176,135

107,542

Total operating expenses

307,958

138,282

893,398

506,279

Operating loss

(200,397

)

(85,112

)

(543,937

)

(358,088

)

Interest income

1,853

2,299

7,507

11,551

Other income (expense), net

951

(186

)

(610

)

(1,005

)

Loss before income taxes

(197,593

)

(82,999

)

(537,040

)

(347,542

)

Provision for income taxes

1,342

255

2,062

993

Net loss

$

(198,935

)

$

(83,254

)

$

(539,102

)

$

(348,535

)

Net loss per share attributable to common stockholders – basic and diluted

$

(0.70

)

$

(1.67

)

$

(3.81

)

$

(7.77

)

Weighted-average shares used to compute net loss per share attributable to common stockholders – basic and diluted

284,121,777

49,992,181

141,613,196

44,847,442

Snowflake Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

January 31, 2021

January 31, 2020

Assets

Current assets:

Cash and cash equivalents

$

820,177

$

127,206

Short-term investments

3,087,887

306,844

Accounts receivable, net

294,017

179,459

Deferred commissions, current

32,371

26,358

Prepaid expenses and other current assets

66,200

25,327

Total current assets

4,300,652

665,194

Long-term investments

1,165,275

23,532

Property and equipment, net

68,968

27,136

Operating lease right-of-use assets

186,818

195,976

Goodwill

8,449

7,049

Intangible assets, net

16,091

4,795

Deferred commissions, non-current

86,164

69,516

Other assets

89,322

19,522

Total assets

$

5,921,739

$

1,012,720

Liabilities, Redeemable Convertible Preferred Stock and
Stockholders’ Equity (Deficit)

Current liabilities:

Accounts payable

$

5,647

$

8,488

Accrued expenses and other current liabilities

125,315

62,817

Operating lease liabilities, current

19,650

18,092

Deferred revenue, current

638,652

327,058

Total current liabilities

789,264

416,455

Operating lease liabilities, non-current

184,887

193,175

Deferred revenue, non-current

4,194

2,907

Other liabilities

6,923

8,466

Redeemable convertible preferred stock

936,474

Stockholders’ equity (deficit)

4,936,471

(544,757

)

Total liabilities, redeemable convertible preferred stock, and stockholders’ equity (deficit)

$

5,921,739

$

1,012,720

Snowflake Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Three Months Ended January 31,

Twelve Months Ended January 31,

2021

2020

2021

2020

Cash flows from operating activities:

Net loss

$

(198,935

)

$

(83,254

)

$

(539,102

)

$

(348,535

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization

3,215

1,265

9,826

3,522

Non-cash operating lease costs

8,635

7,978

33,475

27,712

Amortization of deferred commissions

7,608

5,578

28,841

16,986

Stock-based compensation, net of amounts capitalized

143,651

20,974

301,441

78,399

Net amortization (accretion) of premiums (discounts) on investments

7,513

(310

)

8,630

(5,459

)

Other

507

200

4,580

1,476

Changes in operating assets and liabilities, net of effect of acquisitions:

Accounts receivable

(125,510

)

(78,676

)

(116,289

)

(116,869

)

Deferred commissions

(24,183

)

(33,591

)

(51,444

)

(68,595

)

Prepaid expenses and other assets

(32,869

)

(1,955

)

(62,349

)

(10,811

)

Accounts payable

928

(9,450

)

(2,878

)

1,116

Accrued expenses and other liabilities

35,775

20,626

58,252

34,994

Operating lease liabilities

(7,863

)

(7,403

)

(31,281

)

(13,455

)

Deferred revenue

201,142

115,226

312,881

222,961

Net cash provided by (used in) operating activities

19,614

(42,792

)

(45,417

)

(176,558

)

Cash flows from investing activities:

Purchases of property and equipment

(11,019

)

(4,079

)

(35,037

)

(18,583

)

Capitalized internal-use software development costs

(1,279

)

(1,325

)

(5,293

)

(4,265

)

Cash paid for acquisitions, net of cash acquired

(6,035

)

(6,314

)

Purchases of intangible assets

(2,190

)

(8,374

)

Purchases of investments

(3,624,832

)

(105,375

)

(4,859,852

)

(622,854

)

Sales of investments

148,365

10,691

177,070

14,087

Maturities and redemptions of investments

329,348

84,438

700,876

776,424

Net cash (used in) provided by investing activities

(3,161,607

)

(15,650

)

(4,036,645

)

138,495

Cash flows from financing activities:

Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs

478,573

24,121

Proceeds from initial public offering and private placements, net of underwriting discounts

4,242,284

Proceeds from early exercised stock options

271

159

6,213

Proceeds from exercise of stock options

22,278

6,387

53,378

27,526

Proceeds from repayment of a nonrecourse promissory note

2,090

Repurchases of early exercised stock options and restricted common stock

(30

)

(391

)

Payments of deferred purchase consideration for acquisitions

(1,164

)

Net cash provided by financing activities

22,278

6,658

4,775,290

57,469

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(11

)

(11

)

Net (decrease) increase in cash, cash equivalents and restricted cash

(3,119,726

)

(51,784

)

693,217

19,406

Cash, cash equivalents and restricted cash at beginning of period

3,954,919

193,760

141,976

122,570

Cash, cash equivalents and restricted cash at end of period

$

835,193

$

141,976

$

835,193

$

141,976

Snowflake Inc.

GAAP to Non-GAAP Reconciliations

(in thousands, except percentages)

(unaudited)

Three Months Ended January 31, 2021

GAAP amounts

GAAP amounts
as a % of
revenue

Stock-based
compensation
expense-related
charges(1)

Amortization of
acquired
intangibles

Expenses
associated with
acquisitions
and strategic
investments

Non-GAAP
amounts

Non-GAAP
amounts as a %
of revenue

Revenue:

Product revenue

$

178,288

94

%

Professional services and other revenue

12,177

6

%

Revenue

190,465

100

%

Year over Year % Growth

117

%

Cost of Revenue:

Cost of product revenue

63,770

33

%

$

(10,171

)

$

(566

)

$

$

53,033

28

%

Cost of professional services and other revenue

19,134

11

%

(8,702

)

10,432

5

%

Total cost of revenue

82,904

44

%

(18,873

)

(566

)

63,465

33

%

Gross profit (loss):

Product gross profit

114,518

10,171

566

125,255

Professional services and other gross profit (loss)

(6,957

)

8,702

1,745

Total gross profit

107,561

56

%

18,873

566

127,000

67

%

Product gross margin

64

%

6

%

%

%

70

%

Professional services and other gross margin

(57

%)

71

%

%

%

14

%

Total gross margin

56

%

11

%

%

%

67

%

Operating expenses:

Sales and marketing

154,050

81

%

(52,438

)

101,612

54

%

Research and development

93,997

49

%

(53,440

)

40,557

21

%

General and administrative

59,911

31

%

(28,713

)

(352

)

(44

)

30,802

16

%

Total operating expenses

307,958

161

%

(134,591

)

(352

)

(44

)

172,971

91

%

Operating loss

$

(200,397

)

(105

%)

$

153,464

$

918

$

44

$

(45,971

)

(24

%)

Operating margin

(105

%)

81

%

%

%

(24

%)

(1) Stock-based compensation expense-related charges included approximately $9.6 million of employer payroll tax-related expenses on employee stock transactions.

Three Months Ended January 31, 2020

GAAP amounts

GAAP amounts
as a % of
revenue

Stock-based
compensation
expense-related
charges(1)

Amortization of
acquired
intangibles

Expenses
associated with
acquisitions
and strategic
investments

Non-GAAP
amounts

Non-GAAP
amounts as a %
of revenue

Revenue:

Product revenue

$

82,432

94

%

Professional services and other revenue

5,260

6

%

Revenue

87,692

100

%

Year over Year % Growth

139

%

Cost of Revenue:

Cost of product revenue

28,777

33

%

$

(472

)

$

(281

)

$

$

28,024

32

%

Cost of professional services and other revenue

5,745

6

%

(496

)

5,249

6

%

Total cost of revenue

34,522

39

%

(968

)

(281

)

33,273

38

%

Gross profit (loss):

Product gross profit

53,655

472

281

54,408

Professional services and other gross profit (loss)

(485

)

496

11

Total gross profit

53,170

61

%

968

281

54,419

62

%

Product gross margin

65

%

1

%

%

%

66

%

Professional services and other gross margin

(9

%)

9

%

%

%

%

Total gross margin

61

%

1

%

%

%

62

%

Operating expenses:

Sales and marketing

80,444

92

%

(5,424

)

(16

)

75,004

86

%

Research and development

29,709

34

%

(4,929

)

24,780

28

%

General and administrative

28,129

32

%

(9,758

)

18,371

21

%

Total operating expenses

138,282

158

%

(20,111

)

(16

)

118,155

135

%

Operating loss

$

(85,112

)

(97

%)

$

21,079

$

297

$

$

(63,736

)

(73

%)

Operating margin

(97

%)

24

%

%

%

(73

%)

(1) Stock-based compensation expense-related charges included approximately $0.1 million of employer payroll tax-related expenses on employee stock transactions.

Twelve Months Ended January 31, 2021

GAAP amounts

GAAP amounts
as a % of
revenue

Stock-based
compensation
expense-related
charges(1)

Amortization of
acquired
intangibles

Expenses
associated with
acquisitions
and strategic
investments

Non-GAAP
amounts

Non-GAAP
amounts as a %
of revenue

Revenue:

Product revenue

$

553,794

94

%

Professional services and other revenue

38,255

6

%

Revenue

592,049

100

%

Year over Year % Growth

124

%

Cost of Revenue:

Cost of product revenue

193,835

33

%

$

(18,724

)

$

(1,696

)

$

$

173,415

29

%

Cost of professional services and other revenue

48,753

8

%

(16,104

)

32,649

6

%

Total cost of revenue

242,588

41

%

(34,828

)

(1,696

)

206,064

35

%

Gross profit (loss):

Product gross profit

359,959

18,724

1,696

380,379

Professional services and other gross profit (loss)

(10,498

)

16,104

5,606

Total gross profit

349,461

59

%

34,828

1,696

385,985

65

%

Product gross margin

65

%

4

%

%

%

69

%

Professional services and other gross margin

(27

%)

42

%

%

%

15

%

Total gross margin

59

%

6

%

%

%

65

%

Operating expenses:

Sales and marketing

479,317

81

%

(104,537

)

(12

)

374,768

63

%

Research and development

237,946

40

%

(103,954

)

133,992

23

%

General and administrative

176,135

30

%

(72,647

)

(1,069

)

(296

)

102,123

17

%

Total operating expenses

893,398

151

%

(281,138

)

(1,081

)

(296

)

610,883

103

%

Operating loss

$

(543,937

)

(92

%)

$

315,966

$

2,777

$

296

$

(224,898

)

(38

%)

Operating margin

(92

%)

54

%

%

%

(38

%)

(1) Stock-based compensation expense-related charges included approximately $14.2 million of employer payroll tax-related expenses on employee stock transactions.

Twelve Months Ended January 31, 2020

GAAP amounts

GAAP amounts
as a % of
revenue

Stock-based
compensation
expense-related
charges(1)

Amortization of
acquired
intangibles

Expenses
associated with
acquisitions
and strategic
investments

Non-GAAP
amounts

Non-GAAP
amounts as a %
of revenue

Revenue:

Product revenue

$

252,229

95

%

Professional services and other revenue

12,519

5

%

Revenue

264,748

100

%

Year over Year % Growth

174

%

Cost of Revenue:

Cost of product revenue

96,622

36

%

$

(1,919

)

$

(849

)

$

$

93,854

35

%

Cost of professional services and other revenue

19,935

8

%

(1,732

)

18,203

7

%

Total cost of revenue

116,557

44

%

(3,651

)

(849

)

112,057

42

%

Gross profit (loss):

Product gross profit

155,607

1,919

849

158,375

Professional services and other gross loss

(7,416

)

1,732

(5,684

)

Total gross profit

148,191

56

%

3,651

849

152,691

58

%

Product gross margin

62

%

1

%

%

%

63

%

Professional services and other gross margin

(59

%)

14

%

%

%

(45

%)

Total gross margin

56

%

1

%

1

%

%

58

%

Operating expenses:

Sales and marketing

293,577

111

%

(20,922

)

(58

)

272,597

103

%

Research and development

105,160

40

%

(15,786

)

89,374

34

%

General and administrative

107,542

41

%

(38,257

)

(328

)

68,957

26

%

Total operating expenses

506,279

192

%

(74,965

)

(58

)

(328

)

430,928

163

%

Operating loss

$

(358,088

)

(136

%)

$

78,616

$

907

$

328

$

(278,237

)

(105

%)

Operating margin

(136

%)

30

%

1

%

%

(105

%)

(1) Stock-based compensation expense-related charges included approximately $0.2 million of employer payroll tax-related expenses on employee stock transactions.

Three Months Ended January 31,

Twelve Months Ended January 31,

2021

2020

2021

2020

Revenue

$

190,465

$

87,692

$

592,049

$

264,748

GAAP net cash provided by (used in) operating activities

$

19,614

$

(42,792

)

$

(45,417

)

$

(176,558

)

Less: purchases of property and equipment

(11,019

)

(4,079

)

(35,037

)

(18,583

)

Less: capitalized internal-use software development costs

(1,279

)

(1,325

)

(5,293

)

(4,265

)

Non-GAAP free cash flow

7,316

(48,196

)

(85,747

)

(199,406

)

Add: cash paid for employer payroll tax-related items on employee stock transactions

9,940

105

14,136

217

Non-GAAP adjusted free cash flow

$

17,256

$

(48,091

)

$

(71,611

)

$

(199,189

)

Non-GAAP free cash flow margin

4

%

(55

%)

(14

%)

(75

%)

Non-GAAP adjusted free cash flow margin

9

%

(55

%)

(12

%)

(75

%)

View source version on businesswire.com: https://www.businesswire.com/news/home/20210303005871/en/

Contacts

Investor Contact
Jimmy Sexton
[email protected]

Press Contact
Eszter Szikora
[email protected]

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