Company: NAVN
Filing Date: 2025-07-28
Form Type: DRS/A
Source: 0001628279-25-000476
Chunk: 143

Company: Navan, Inc.
Filing Date: 2025-07-28
Form: DRS/A
Chunk 143
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 |     |        4 | % |
| Gross profit    |                        | $                      | 367,022 |   |     | $ | 239,634 |   |     | $ | 127,388 |     |     |       53 | % |
| Gross margin    |                        |                        |      68 | % |     |   |      60 | % |     |   |         |     |     |          |   |

<div align='center'>97</div>

Cost of revenue for the year ended January 31, 2025 increased by $7.2 million, or 4%, primarily due to an increase in salaries and related benefits of $4.6 million, an increase in merchant fees of $2.9 million, and an increase in cloud hosting, support, processing and ticketing fees of $2.8 million, offset by a $2.9 million decrease in depreciation related to the early termination of an office lease during the year ended January 31, 2024, and a decrease in stock-based compensation of $0.1 million. The increase in gross profit and gross profit percentage is primarily due to an increase in revenue on a relatively fixed cost base supported by our delivery of AI-powered customer support.

Operating Expenses

Research and Development Expense

|                          | (dollars in thousands) | Year Ended January 31, |    2025 |     |   |    2024 |     |   |  Change |     |     | % Change |    |
|:-------------------------|:-----------------------|:-----------------------|--------:|:----|:--|--------:|:----|:--|--------:|:----|:----|:---------|:---|
| Research and development |                        | $                      | 122,386 |     | $ | 132,442 |     | $ | -10,056 |     |     | (8       | %) |

Research and development expense for the year ended January 31, 2025 decreased by $10.1 million, or 8%, primarily due to a decrease in salaries and related benefits of $13.4 million driven by a reduction in headcount, offset by an increase of $3.4 million in stock-based compensation.

Sales and Marketing Expense

|                     | (dollars in thousands) | Year Ended January 31, |    2025 |     |   |    2024 |     |   | Change |