however , there can be no assurance that we will achieve or maintain profitability on a consistent basis , that we will increase our sales to new and existing customers , or that our operating expenses will increase at a lower rate than our revenue may grow . covid-19 update our first priority remains ensuring the safety and health of our employees , customers and others with whom we partner in conducting our business . in response to the pandemic , and in line with guidance provided by government agencies and international organizations , we temporarily closed substantially all of our offices and requested our employees work remotely , suspended all non-essential travel and activated our business continuity plan so we can continue to support customers while protecting our employees . we continue , in the vast majority of instances , to operate our business remotely . we have also moved all in-person customer-facing events to virtual ones . to date , the pandemic , which has affected nearly all regions around the world , and preventive measures taken to contain or mitigate the pandemic , are adversely impacting economic activity and have 60 caused and may continue to cause significant disruptions in the financial markets . the covid-19 pandemic and resulting economic uncertainty has negatively impacted our business and we anticipate that it will continue to have an adverse impact on our results of operations and financial performance . we can not predict with any certainty the degree to , or the time period over , which we will be affected by this pandemic . while we believe the pandemic has had certain impacts on our business , we do not believe there has been , nor are we anticipating , a material impact from the effects of the pandemic on our operations , financial condition , liquidity and capital and financial resources ; however , the situation is rapidly changing and hard to predict and actual results may differ materially from our current expectations . the broader implications of the covid-19 pandemic on our results of operations and overall financial performance remain uncertain , particularly because the full extent to which the covid-19 pandemic may impact our results of operations and financial performance will depend on future developments , which are highly uncertain and can not be predicted , including but not limited to , the duration and geographic spread of the pandemic , its severity , the actions to contain the virus or treat its impact , and how quickly and to what extent normal economic and operating conditions can resume . we have experienced and expect to continue to experience curtailed customer demand that could adversely impact our business , results of operations and overall financial performance in future periods . specifically , we have experienced and expect to continue to experience impacts from reduced it budgets of customers and potential customers resulting in deferred purchase decisions , delayed implementation of our products , reduced renewals of subscriptions by existing customers , and decreases in software license sales driven by channel partners . we also have experienced challenges in creating sales pipeline in the absence of in-person marketing events . we have seen and may see in the future a slowing in our collections of outstanding accounts receivable as a result of requested changes in billing terms from some of our customers . moreover , because of our subscription-based business model , the effect of the covid-19 pandemic will not be fully reflected in our results of operations and overall financial performance until future periods . there has been no impact to our financial reporting systems , internal control over financial reporting , or any disclosure controls or procedures . even after the covid-19 pandemic has subsided , we may continue to experience an adverse impact to our business as a result of its global economic impact , including any recession that has occurred or may occur in the future . specifically , difficult macroeconomic conditions , such as decreases in per capita income and levels of disposable income , increased and prolonged unemployment or a decline in business confidence and business investment , particularly in information technology , as a result of the covid-19 pandemic , could have a continuing adverse effect on the demand for some of our offerings . the degree of impact of the covid-19 pandemic on our business will depend on several factors , such as the duration and the extent of the pandemic , as well as actions taken by governments , businesses and others in response to the pandemic , all of which continue to evolve and remain uncertain at this time . we have established a task force to actively monitor the ongoing covid-19 pandemic situation and provide updates , current information , and support to our employees . we remain committed to serving our customers ' needs and to providing creative and flexible customer support . we may take further actions that alter our business operations as may be required by federal , state or local authorities or that we determine are in the best interests of our employees , customers , partners , and shareholders . see the risk factors section for further discussion of the possible impact of the covid-19 pandemic on our business . key factors affecting our performance expansion within existing customers . our business model relies on rapidly and efficiently winning new customers and expanding our relationship with these customers over time . we have designed our platform for ease-of-use and with strong integrations between apps to encourage broad adoption within organizations . story_separator_special_tag we believe that cac effectively measures the cost required to generate a dollar of net new business and we believe provides useful insight to our investors about the efficiency of our sales and marketing activities . the following table shows our cac on a quarterly basis since december 31 , 2019 and a reconciliation to the most directly comparable gaap measure for such periods . the sales and marketing expense , as reported on a gaap and non-gaap basis , are each presented on a trailing twelve month basis in the following table . replace_table_token_9_th ( 1 ) other expenses include expenses related to the reorganization of our business model in emerging markets . key components of results of operations revenue we primarily derive our revenue from the sale of subscriptions and professional services engagements . subscription revenue . subscription revenue consists of fees earned from arrangements to provide customers with the right to use our commercial software either in a cloud-based infrastructure that we provide or installed within the customer 's own environment . our subscriptions include unspecified future updates , upgrades and enhancements and technical product support . premium support and access to our on-demand training portal is also available as a subscription . subscription fees are based primarily on the number of users of our software and to a lesser extent data processing . our subscription-based arrangements generally have a minimum contractual term of one year and are generally invoiced in advance for the full subscription term . subscription fees are generally non-refundable regardless of the actual use of the service . professional services revenue . professional services revenue consists of fees earned for consulting engagements related to the deployment and configuration of our product offering , training customers and associated expenses . these engagements are generally provided by our own team of specialized consultants or by third-party consultants to whom we contract on a periodic basis . consulting engagements consist of time-based arrangements for which the revenue is recognized using a time and material basis . training revenue results from contracts to provide educational services to customers and partners regarding the use of our technologies and is recognized as delivered . we expect our professional services revenue may decline , as we work with more systems integrators , who assist our customers with the implementation of our solutions , and as our cloud offerings increase because cloud customers typically demand fewer professional services . cost of revenue cost of subscription revenue . cost of subscription revenue consists primarily of employee-related costs , including salaries and bonuses , share-based payment expenses and employee benefit costs associated with our customer support organization . it also includes expenses related to hosting and operating our cloud infrastructure , licensing of third-party intellectual property and related overhead . we use third-party cloud platform providers to provide our cloud solution . we allocate overhead such as 66 information technology infrastructure , rent and occupancy charges in each expense category based on headcount in that category . as such , general overhead expenses are reflected in cost of subscription revenue and operating expense categories . we intend to continue to invest additional resources in our cloud offerings and services . we expect that the cost of hosting fees to provide our cloud offerings will increase over time as we sell more of our cloud integration products . the timing of these expenses will affect our cost of subscription revenue in the affected periods . cost of professional services revenue . cost of professional services revenue consists primarily of personnel costs for employees including salaries and bonuses , share-based payment expenses and employee benefit costs and fees to external consultants associated with our professional service contracts , travel costs and allocated shared costs . we allocate overhead such as information technology infrastructure , rent and occupancy charges in each expense category based on headcount in that category . as such , general overhead expenses are reflected in the cost of professional services revenue and operating expense categories . gross profit and gross margin gross profit is total revenue less total cost of revenue . gross margin is gross profit expressed as a percentage of total revenue . we expect that our gross margin may fluctuate from period to period as a result of changes in the mix of our subscription and professional services revenue . over time , we expect revenue from our cloud integration business to grow as a percentage of our total revenue . as a result , the cost of hosting fees to third-party cloud infrastructure providers , as a percentage of revenue , will increase , which may affect our gross margin . operating expenses our operating expenses are classified as sales and marketing , research and development and general and administrative . for each functional category , the largest component is employee and labor-related expenses , which include salaries and bonuses , sales commissions , share-based payment expense , employee benefit costs and contractor costs . we allocate overhead such as information technology infrastructure , rent and occupancy charges in each expense category based on headcount in that category . sales and marketing . sales and marketing expenses consist primarily of salaries , sales commissions and related expenses , including share-based payment expense , for our sales and marketing employees , marketing programs and related overhead . our sales and marketing employees include quota carrying headcount , sales administration , sales engineering , marketing and management . marketing programs consist of advertising , promotional events , corporate communications , brand building , product marketing activities such as online lead generation , and developing sales strategies that emphasize particular products or services . we plan to continue to invest in sales and marketing by expanding our global promotional activities , building brand awareness , attracting new customers and sponsoring additional marketing events . the timing of these events , such as our annual sales kickoff , will affect our sales

liquidity and capital resources replace_table_token_16_th through december 31 , 2020 , we have financed our operations primarily through cash received from customers for subscriptions of our software and professional services , as well as equity and equity-linked financings . in 2019 , we received net proceeds , after deducting discounts and commission to the initial purchasers and issuance expenses , of $ 147.5 million from the issuance of our 2024 notes . in connection with the issuance of our 2024 notes , we terminated our secured revolving credit facility . as of december 31 , 2020 , we had $ 162.9 million of cash and cash equivalents . we believe that our current cash and cash equivalents will be sufficient to meet our working capital and capital expenditure requirements for the foreseeable future , despite the uncertainty in the changing market and economic conditions resulting from the covid-19 pandemic . our future capital requirements will depend on many factors , including our growth rate , and the timing and extent of our spending to support our operating expenses and strategic investments . in the event that we require or choose to seek financing from outside sources , we may not be able to raise such financing on terms acceptable to us or at all . if we are unable to raise additional capital when needed or desired , our business , results of operations and financial condition could be adversely affected .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources replace_table_token_16_th through december 31 , 2020 , we have financed our operations primarily through cash received from customers for subscriptions of our software and professional services , as well as equity and equity-linked financings . in 2019 , we received net proceeds , after deducting discounts and commission to the initial purchasers and issuance expenses , of $ 147.5 million from the issuance of our 2024 notes . in connection with the issuance of our 2024 notes , we terminated our secured revolving credit facility . as of december 31 , 2020 , we had $ 162.9 million of cash and cash equivalents . we believe that our current cash and cash equivalents will be sufficient to meet our working capital and capital expenditure requirements for the foreseeable future , despite the uncertainty in the changing market and economic conditions resulting from the covid-19 pandemic . our future capital requirements will depend on many factors , including our growth rate , and the timing and extent of our spending to support our operating expenses and strategic investments . in the event that we require or choose to seek financing from outside sources , we may not be able to raise such financing on terms acceptable to us or at all . if we are unable to raise additional capital when needed or desired , our business , results of operations and financial condition could be adversely affected .
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 Suspicious Activity Report : however , there can be no assurance that we will achieve or maintain profitability on a consistent basis , that we will increase our sales to new and existing customers , or that our operating expenses will increase at a lower rate than our revenue may grow . covid-19 update our first priority remains ensuring the safety and health of our employees , customers and others with whom we partner in conducting our business . in response to the pandemic , and in line with guidance provided by government agencies and international organizations , we temporarily closed substantially all of our offices and requested our employees work remotely , suspended all non-essential travel and activated our business continuity plan so we can continue to support customers while protecting our employees . we continue , in the vast majority of instances , to operate our business remotely . we have also moved all in-person customer-facing events to virtual ones . to date , the pandemic , which has affected nearly all regions around the world , and preventive measures taken to contain or mitigate the pandemic , are adversely impacting economic activity and have 60 caused and may continue to cause significant disruptions in the financial markets . the covid-19 pandemic and resulting economic uncertainty has negatively impacted our business and we anticipate that it will continue to have an adverse impact on our results of operations and financial performance . we can not predict with any certainty the degree to , or the time period over , which we will be affected by this pandemic . while we believe the pandemic has had certain impacts on our business , we do not believe there has been , nor are we anticipating , a material impact from the effects of the pandemic on our operations , financial condition , liquidity and capital and financial resources ; however , the situation is rapidly changing and hard to predict and actual results may differ materially from our current expectations . the broader implications of the covid-19 pandemic on our results of operations and overall financial performance remain uncertain , particularly because the full extent to which the covid-19 pandemic may impact our results of operations and financial performance will depend on future developments , which are highly uncertain and can not be predicted , including but not limited to , the duration and geographic spread of the pandemic , its severity , the actions to contain the virus or treat its impact , and how quickly and to what extent normal economic and operating conditions can resume . we have experienced and expect to continue to experience curtailed customer demand that could adversely impact our business , results of operations and overall financial performance in future periods . specifically , we have experienced and expect to continue to experience impacts from reduced it budgets of customers and potential customers resulting in deferred purchase decisions , delayed implementation of our products , reduced renewals of subscriptions by existing customers , and decreases in software license sales driven by channel partners . we also have experienced challenges in creating sales pipeline in the absence of in-person marketing events . we have seen and may see in the future a slowing in our collections of outstanding accounts receivable as a result of requested changes in billing terms from some of our customers . moreover , because of our subscription-based business model , the effect of the covid-19 pandemic will not be fully reflected in our results of operations and overall financial performance until future periods . there has been no impact to our financial reporting systems , internal control over financial reporting , or any disclosure controls or procedures . even after the covid-19 pandemic has subsided , we may continue to experience an adverse impact to our business as a result of its global economic impact , including any recession that has occurred or may occur in the future . specifically , difficult macroeconomic conditions , such as decreases in per capita income and levels of disposable income , increased and prolonged unemployment or a decline in business confidence and business investment , particularly in information technology , as a result of the covid-19 pandemic , could have a continuing adverse effect on the demand for some of our offerings . the degree of impact of the covid-19 pandemic on our business will depend on several factors , such as the duration and the extent of the pandemic , as well as actions taken by governments , businesses and others in response to the pandemic , all of which continue to evolve and remain uncertain at this time . we have established a task force to actively monitor the ongoing covid-19 pandemic situation and provide updates , current information , and support to our employees . we remain committed to serving our customers ' needs and to providing creative and flexible customer support . we may take further actions that alter our business operations as may be required by federal , state or local authorities or that we determine are in the best interests of our employees , customers , partners , and shareholders . see the risk factors section for further discussion of the possible impact of the covid-19 pandemic on our business . key factors affecting our performance expansion within existing customers . our business model relies on rapidly and efficiently winning new customers and expanding our relationship with these customers over time . we have designed our platform for ease-of-use and with strong integrations between apps to encourage broad adoption within organizations . story_separator_special_tag we believe that cac effectively measures the cost required to generate a dollar of net new business and we believe provides useful insight to our investors about the efficiency of our sales and marketing activities . the following table shows our cac on a quarterly basis since december 31 , 2019 and a reconciliation to the most directly comparable gaap measure for such periods . the sales and marketing expense , as reported on a gaap and non-gaap basis , are each presented on a trailing twelve month basis in the following table . replace_table_token_9_th ( 1 ) other expenses include expenses related to the reorganization of our business model in emerging markets . key components of results of operations revenue we primarily derive our revenue from the sale of subscriptions and professional services engagements . subscription revenue . subscription revenue consists of fees earned from arrangements to provide customers with the right to use our commercial software either in a cloud-based infrastructure that we provide or installed within the customer 's own environment . our subscriptions include unspecified future updates , upgrades and enhancements and technical product support . premium support and access to our on-demand training portal is also available as a subscription . subscription fees are based primarily on the number of users of our software and to a lesser extent data processing . our subscription-based arrangements generally have a minimum contractual term of one year and are generally invoiced in advance for the full subscription term . subscription fees are generally non-refundable regardless of the actual use of the service . professional services revenue . professional services revenue consists of fees earned for consulting engagements related to the deployment and configuration of our product offering , training customers and associated expenses . these engagements are generally provided by our own team of specialized consultants or by third-party consultants to whom we contract on a periodic basis . consulting engagements consist of time-based arrangements for which the revenue is recognized using a time and material basis . training revenue results from contracts to provide educational services to customers and partners regarding the use of our technologies and is recognized as delivered . we expect our professional services revenue may decline , as we work with more systems integrators , who assist our customers with the implementation of our solutions , and as our cloud offerings increase because cloud customers typically demand fewer professional services . cost of revenue cost of subscription revenue . cost of subscription revenue consists primarily of employee-related costs , including salaries and bonuses , share-based payment expenses and employee benefit costs associated with our customer support organization . it also includes expenses related to hosting and operating our cloud infrastructure , licensing of third-party intellectual property and related overhead . we use third-party cloud platform providers to provide our cloud solution . we allocate overhead such as 66 information technology infrastructure , rent and occupancy charges in each expense category based on headcount in that category . as such , general overhead expenses are reflected in cost of subscription revenue and operating expense categories . we intend to continue to invest additional resources in our cloud offerings and services . we expect that the cost of hosting fees to provide our cloud offerings will increase over time as we sell more of our cloud integration products . the timing of these expenses will affect our cost of subscription revenue in the affected periods . cost of professional services revenue . cost of professional services revenue consists primarily of personnel costs for employees including salaries and bonuses , share-based payment expenses and employee benefit costs and fees to external consultants associated with our professional service contracts , travel costs and allocated shared costs . we allocate overhead such as information technology infrastructure , rent and occupancy charges in each expense category based on headcount in that category . as such , general overhead expenses are reflected in the cost of professional services revenue and operating expense categories . gross profit and gross margin gross profit is total revenue less total cost of revenue . gross margin is gross profit expressed as a percentage of total revenue . we expect that our gross margin may fluctuate from period to period as a result of changes in the mix of our subscription and professional services revenue . over time , we expect revenue from our cloud integration business to grow as a percentage of our total revenue . as a result , the cost of hosting fees to third-party cloud infrastructure providers , as a percentage of revenue , will increase , which may affect our gross margin . operating expenses our operating expenses are classified as sales and marketing , research and development and general and administrative . for each functional category , the largest component is employee and labor-related expenses , which include salaries and bonuses , sales commissions , share-based payment expense , employee benefit costs and contractor costs . we allocate overhead such as information technology infrastructure , rent and occupancy charges in each expense category based on headcount in that category . sales and marketing . sales and marketing expenses consist primarily of salaries , sales commissions and related expenses , including share-based payment expense , for our sales and marketing employees , marketing programs and related overhead . our sales and marketing employees include quota carrying headcount , sales administration , sales engineering , marketing and management . marketing programs consist of advertising , promotional events , corporate communications , brand building , product marketing activities such as online lead generation , and developing sales strategies that emphasize particular products or services . we plan to continue to invest in sales and marketing by expanding our global promotional activities , building brand awareness , attracting new customers and sponsoring additional marketing events . the timing of these events , such as our annual sales kickoff , will affect our sales

