UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in charter)
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(State or Other Jurisdiction of Incorporation) |
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(Commission File Number) |
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(I.R.S. Employer Identification Number) |
(Address of principal executive offices, including zip code)
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Name of each exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □
Item 2.02 Results of Operations and Financial Condition.
On August 3, 2023, BigCommerce Holdings, Inc. (the “Company”) issued a press release announcing financial results for the three-month period ended June 30, 2023. The press release contains forward-looking statements regarding the Company, and includes cautionary statements identifying important factors that could cause actual results to differ materially from those anticipated.
The press release issued August 3, 2023 is furnished herewith as Exhibit 99.1. The information in this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liability of that Section, nor shall such information be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as otherwise stated in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
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Exhibit No. |
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Description |
99.1 |
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Press Release issued by BigCommerce Holdings, Inc. dated August 3, 2023. |
104 |
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Cover page interactive data file (embedded within the inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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BigCommerce Holdings, Inc. |
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Date: August 3, 2023 |
By: |
/s/ Daniel Lentz |
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Daniel Lentz |
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Chief Financial Officer
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Exhibit 99.1
BigCommerce Announces Second Quarter 2023 Financial Results
Second Quarter Total Revenue of $75.4 Million, an Increase of 11% Versus Prior Year; Total ARR of $331.1 Million, an Increase of 12% Versus Prior Year. Enterprise ARR of $236.4 Million, an Increase of 14% Versus Prior Year.
AUSTIN, Texas – August 3, 2023 – BigCommerce Holdings, Inc. (“BigCommerce”) (Nasdaq: BIGC), a leading Open SaaS ecommerce platform for fast-growing and established B2C and B2B brands, today announced financial results for its second quarter ended June 30, 2023.
“We hit two big milestones in the second quarter. We reached profitability on an adjusted EBITDA basis in June, and we delivered full-quarter positive free cash flow for the first time,” said Brent Bellm, CEO at BigCommerce. “We will continue the hard work required to achieve our long-term growth and profitability goals. With our recent leadership additions and product releases, I am confident we have the team, product, and execution ability to accomplish those goals.”
“Our results at the halfway point reflect progress in a number of areas,” said Daniel Lentz, CFO at BigCommerce. “Margin and cash flow improvements are notable and encouraging. The performance of the small business portion of our business has exceeded our expectations, and revenue and operating loss results have exceeded guidance. We continue to optimize for profitable growth in the midmarket and enterprise portions of our business as well.”
Second Quarter Financial Highlights:
Other Key Business Metrics
Operating Income/(Loss)
Exhibit 99.1
Net Income/(Loss) and Earnings Per Share
Adjusted EBITDA
Cash
Business Highlights:
Exhibit 99.1
Exhibit 99.1
Q3 and 2023 Financial Outlook:
For the third quarter of 2023, the Company currently expects:
For the full year 2023, the Company currently expects:
The Company’s third quarter and 2023 financial outlook is based on a number of assumptions that are subject to change and many of which are outside the Company’s control. If actual results vary from these assumptions, the Company’s expectations may change. There can be no assurance that the Company will achieve these results.
The Company does not provide guidance for operating loss, the most directly comparable GAAP measure to Non-GAAP operating loss, and similarly cannot provide a reconciliation between its forecasted Non-GAAP operating loss and Non-GAAP net loss per share and these comparable GAAP measures without unreasonable effort due to the unavailability of reliable estimates for certain items. These items are not within the Company’s control and may vary greatly between periods and could significantly impact future financial results.
Conference Call Information
BigCommerce will host a conference call and webcast at 4:00 p.m. CT (5:00 p.m. ET) on Thursday, August 3, 2023, to discuss its financial results and business highlights. The conference call can be accessed by dialing (833) 634-1254 from the United States and Canada or (412) 317-6012 internationally and requesting to join the “BigCommerce conference call.” The live webcast of the conference call and other materials related to BigCommerce’s financial performance can be accessed from BigCommerce’s investor relations website at http://investors.bigcommerce.com.
Following the completion of the call through 11:59 p.m. ET on Thursday, August 10, 2023, a telephone replay will be available by dialing (877) 344-7529 from the United States, (855) 669-9658 from Canada or (412) 317-0088 internationally with conference ID 4691046. A webcast replay will also be available at http://investors.bigcommerce.com for 12 months.
About BigCommerce
BigCommerce (Nasdaq: BIGC) is a leading open software-as-a-service (SaaS) ecommerce platform that empowers merchants of all sizes to build, innovate and grow their businesses online. BigCommerce provides merchants sophisticated enterprise-grade functionality, customization and performance with simplicity and ease-of-use. Tens of thousands of B2C and B2B companies across 150 countries and numerous industries use BigCommerce to create beautiful, engaging online stores, including Ben & Jerry’s, Molton Brown, S.C. Johnson, Skullcandy, SoloStove, Ted Baker and Vodafone. Headquartered in Austin, BigCommerce has offices in London, Kyiv, San Francisco, and Sydney. For more information, please visit www.bigcommerce.com or follow us on Twitter, LinkedIn, Instagram and Facebook.
Exhibit 99.1
Forward-Looking Statements
This press 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. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “outlook,” “may,” “might,” “plan,” “project,” “will,” “would,” “should,” “could,” “can,” “predict,” “potential,” “strategy, “target,” “explore,” “continue,” or the negative of these terms, and similar expressions intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. These statements may relate to our market size and growth strategy, our estimated and projected costs, margins, revenue, expenditures and customer and financial growth rates, our Q3 and 2023 financial outlook, our plans and objectives for future operations, growth, initiatives or strategies. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance or achievement to differ materially and adversely from those anticipated or implied in the forward-looking statements. These assumptions, uncertainties and risks include that, among others, our business would be harmed by any decline in new customers, renewals or upgrades, our limited operating history makes it difficult to evaluate our prospects and future results of operations, we operate in competitive markets, we may not be able to sustain our revenue growth rate in the future, our business would be harmed by any significant interruptions, delays or outages in services from our platform or certain social media platforms, and a cybersecurity-related attack, significant data breach or disruption of the information technology systems or networks could negatively affect our business. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption “Risk Factors” and elsewhere in our filings with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2022, our Quarterly report on Form 10-Q filed with the SEC on August 4, 2023, and the future quarterly and current reports that we file with the SEC. Forward-looking statements speak only as of the date the statements are made and are based on information available to BigCommerce at the time those statements are made and/or management's good faith belief as of that time with respect to future events. BigCommerce assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.
Use of Non-GAAP Financial Measures
We have provided in this press release certain financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Our management uses these Non-GAAP financial measures internally in analyzing our financial results and believes that use of these Non-GAAP financial measures is useful to investors as an additional tool to evaluate ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar Non-GAAP financial measures. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable financial measures prepared in accordance with GAAP and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. A reconciliation of our historical Non-GAAP financial measures to the most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review these reconciliations.
Annual Revenue Run-Rate
We calculate annual revenue run-rate (“ARR”) at the end of each month as the sum of: (1) contractual monthly recurring revenue at the end of the period, which includes platform subscription fees, invoiced growth adjustments, feed management subscription fees, recurring professional services revenue, and other recurring revenue, multiplied by twelve to prospectively annualize recurring revenue, and (2) the sum of the trailing twelve-month non-recurring
Exhibit 99.1
and variable revenue, which includes one-time partner integrations, one-time fees, payments revenue share, and any other revenue that is non-recurring and variable.
Accounts with Greater than $2,000 ACV
We track the total number of accounts with annual contract value (“ACV”) greater than $2,000 (the “ACV threshold”) as of the end of a monthly billing period. To define this $2,000 ACV cohort, we include only subscription plan revenue and exclude partner and services revenue and recurring services revenue. We consider all stores and brands added and subtracted as of the end of the monthly billing period. This metric includes accounts that may have either one single store or brand above the ACV threshold or multiple stores or brands that together exceed the ACV threshold.
Enterprise Account Metrics
To measure the effectiveness of our ability to execute against our growth strategy, particularly within the mid-market and enterprise business segments, we calculate ARR attributable to Enterprise Accounts. We define Enterprise Accounts as accounts with at least one unique Enterprise plan subscription or an enterprise level feed management subscription (collectively “Enterprise Accounts”). These accounts may have more than one Enterprise plan or a combination of Enterprise plans and Essentials plans.
Average Revenue Per Account
We calculate average revenue per account (ARPA) for accounts above the ACV threshold at the end of a period by including customer-billed revenue and an allocation of partner and services revenue, where applicable. We allocate partner revenue, where applicable, primarily based on each customer’s share of GMV processed through that partner’s solution. For partner revenue that is not directly linked to customer usage of a partner’s solution, we allocate such revenue based on each customer’s share of total platform GMV. Each account’s partner revenue allocation is calculated by taking the account’s trailing twelve-month partner revenue, then dividing by twelve to create a monthly average to apply to the applicable period in order to normalize ARPA for seasonality.
Adjusted EBITDA
We define Adjusted EBITDA as our net loss, excluding the impact of stock-based compensation expense and related payroll tax expense, third party acquisition-related costs, and other acquisition related expenses, including contingent compensation arrangements entered into in connection with acquisitions, depreciation, amortization of acquisition-related intangible assets, interest income, interest expense, changes in fair value of financial instruments, restructuring charges, other non-operating income and expense and our provision for income taxes. The most directly comparable GAAP measure is net loss.
Non-GAAP Operating Loss
We define Non-GAAP Operating Loss as our GAAP Loss from operations, excluding the impact of stock-based compensation expense and related payroll tax expense, third party acquisition-related costs, and other acquisition related expenses, including contingent compensation arrangements entered into in connection with acquisitions, amortization of acquisition-related intangible assets, and restructuring charges. The most directly comparable GAAP measure is our loss from operations.
Non-GAAP Net Loss
Exhibit 99.1
We define Non-GAAP Net Loss as our GAAP net loss, excluding the impact of stock-based compensation expense and related payroll tax expense, third party acquisition-related costs, and other acquisition related expenses, including contingent compensation arrangements entered into in connection with acquisitions, amortization of acquisition-related intangible assets, restructuring charges and changes in fair value of financial instruments. The most directly comparable GAAP measure is our net loss.
Non-GAAP Net Loss per Share
We define Non-GAAP Net Loss per Share as our Non-GAAP Net Loss, defined above, divided by our basic and diluted GAAP weighted average shares outstanding. The most directly comparable GAAP measure is our net loss per share.
Free Cash Flow
We define Free Cash flow as our GAAP cash flow from operating activities plus our GAAP purchases of property and equipment (Capital Expenditures). The most directly comparable GAAP measure is our cash flow from operating activities.
Media Relations Contact Investor Relations Contact
Brad Hem Daniel Lentz
PR@BigCommerce.com InvestorRelations@BigCommerce.com
Exhibit 99.1
Consolidated Balance Sheet
(in thousands)
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June 30, |
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December 31, |
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2023 |
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2022 |
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(Unaudited) |
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Assets |
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Current assets |
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Cash and cash equivalents |
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$74,517 |
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$91,573 |
Restricted cash |
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1,114 |
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1,457 |
Marketable securities |
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222,890 |
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211,941 |
Accounts receivable, net |
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52,151 |
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51,899 |
Prepaid expenses and other assets |
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13,455 |
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11,206 |
Deferred commissions |
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6,995 |
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6,171 |
Total current assets |
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371,122 |
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374,247 |
Property and equipment, net |
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10,362 |
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9,083 |
Operating lease, right-of-use-assets |
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5,042 |
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5,887 |
Prepaid expenses and other assets, net of current portion |
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728 |
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470 |
Deferred commissions, net of current portion |
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6,985 |
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7,037 |
Intangible assets, net |
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23,517 |
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27,583 |
Goodwill |
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49,749 |
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49,749 |
Total assets |
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$467,505 |
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$474,056 |
Liabilities and stockholders’ equity |
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Current liabilities |
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Accounts payable |
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$6,485 |
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$7,013 |
Accrued liabilities |
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3,673 |
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2,937 |
Deferred revenue |
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28,245 |
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17,783 |
Current portion of long-term debt |
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399 |
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— |
Current portion of operating lease liabilities |
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2,563 |
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2,609 |
Other current liabilities |
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50,138 |
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48,444 |
Total current liabilities |
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91,503 |
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78,786 |
Deferred revenue, net of current portion |
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712 |
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1,759 |
Long-term debt |
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339,036 |
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337,497 |
Operating lease liabilities, net of current portion |
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8,695 |
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10,008 |
Other long-term liabilities, net of current portion |
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639 |
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334 |
Total liabilities |
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440,585 |
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428,384 |
Commitments and contingencies (Note 7) |
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Stockholders’ equity |
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Preferred stock, $0.0001 par value; 10,000 shares authorized |
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— |
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— |
Common stock, $0.0001 par value; 500,000 shares Series 1 authorized at June 30, 2023 and December 31, 2022; 75,064 and 73,945 shares Series 1 issued and outstanding at June 30, 2023 and December 31, 2022, respectively. |
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7 |
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7 |
Additional paid-in capital |
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598,657 |
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576,851 |
Accumulated other comprehensive loss |
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(572) |
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(1,199) |
Accumulated deficit |
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(571,172) |
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(529,987) |
Total stockholders’ equity |
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26,920 |
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45,672 |
Total liabilities and stockholders’ equity |
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$467,505 |
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$474,056 |
Exhibit 99.1
Consolidated Statement of Operations
(in thousands, except per share amounts)
(unaudited)
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Three months ended June 30, |
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Six months ended June 30, |
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2023 |
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2022 |
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2023 |
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2022 |
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Revenue |
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$75,443 |
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$68,203 |
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$147,200 |
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$134,253 |
Cost of revenue |
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18,756 |
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16,860 |
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36,202 |
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33,963 |
Gross profit |
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56,687 |
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51,343 |
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110,998 |
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100,290 |
Operating expenses: |
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Sales and marketing |
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35,593 |
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36,033 |
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69,645 |
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69,672 |
Research and development |
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21,403 |
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22,394 |
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42,248 |
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43,339 |
General and administrative |
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14,428 |
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17,526 |
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30,922 |
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33,372 |
Acquisition related expenses |
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4,125 |
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12,521 |
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8,250 |
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25,181 |
Restructuring charges |
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— |
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— |
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420 |
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— |
Amortization of intangible assets |
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2,033 |
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2,009 |
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4,066 |
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4,046 |
Total operating expenses |
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77,582 |
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90,483 |
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155,551 |
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175,610 |
Loss from operations |
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(20,895) |
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(39,140) |
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(44,553) |
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(75,320) |
Interest income |
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2,825 |
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577 |
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5,251 |
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699 |
Interest expense |
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(722) |
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(705) |
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(1,444) |
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(1,414) |
Other expense |
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(63) |
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(297) |
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(32) |
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(452) |
Loss before provision for income taxes |
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(18,855) |
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(39,565) |
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(40,778) |
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(76,487) |
Provision for income taxes |
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210 |
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40 |
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407 |
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155 |
Net loss |
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$(19,065) |
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$(39,605) |
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$(41,185) |
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$(76,642) |
Basic and diluted net loss per share |
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$(0.25) |
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$(0.54) |
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$(0.55) |
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$(1.05) |
Shares used to compute basic and diluted net loss per share |
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74,790 |
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73,084 |
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74,468 |
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72,782 |
Exhibit 99.1
Consolidated Statement of Cash Flows
(in thousands)
(unaudited)
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Three months ended June 30, |
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Six months ended June 30, |
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2023 |
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2022 |
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2023 |
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2022 |
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Cash flows from operating activities |
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Net loss |
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$(19,065) |
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$(39,605) |
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$(41,185) |
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$(76,642) |
Adjustments to reconcile net loss to net cash used in operating activities: |
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Depreciation and amortization |
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2,940 |
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2,821 |
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5,844 |
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5,647 |
Amortization of discount on debt |
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494 |
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490 |
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987 |
|
978 |
Stock-based compensation |
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11,290 |
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10,578 |
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21,777 |
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19,540 |
Allowance for credit losses |
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433 |
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2,086 |
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1,508 |
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3,399 |
Changes in operating assets and liabilities: |
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Accounts receivable |
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6,425 |
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(6,999) |
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(1,760) |
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(9,501) |
Prepaid expenses |
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751 |
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1,816 |
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(3,484) |
|
1,010 |
Deferred commissions |
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(821) |
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(1,397) |
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(772) |
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(2,055) |
Accounts payable |
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(1,023) |
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(1,642) |
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(528) |
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(1,929) |
Accrued and other liabilities |
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7,027 |
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15,550 |
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2,105 |
|
21,252 |
Deferred revenue |
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6,292 |
|
2,427 |
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9,415 |
|
2,441 |
Net cash provided by (used) in operating activities |
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14,743 |
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(13,875) |
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(6,093) |
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(35,860) |
Cash flows from investing activities: |
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Cash paid for acquisition |
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— |
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(696) |
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— |
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(696) |
Purchase of property and equipment |
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(1,017) |
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(2,146) |
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(2,080) |
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(3,486) |
Sales and maturities of marketable securities |
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83,643 |
|
33,600 |
|
123,072 |
|
42,600 |
Purchase of marketable securities |
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(85,351) |
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(46,800) |
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(133,394) |
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(79,273) |
Net cash used in investing activities |
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(2,725) |
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(16,042) |
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(12,402) |
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(40,855) |
Cash flows from financing activities: |
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Proceeds from financing obligation |
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1,081 |
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— |
|
1,081 |
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— |
Taxes paid related to net share settlement of equity awards |
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(811) |
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— |
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(2,230) |
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(3,099) |
Proceeds from exercise of stock options |
|
1,156 |
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(292) |
|
2,245 |
|
2,991 |
Net cash provided by (used in) financing activities |
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1,426 |
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(292) |
|
1,096 |
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(108) |
Net change in cash and cash equivalents and restricted cash |
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13,444 |
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(30,209) |
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(17,399) |
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(76,823) |
Cash and cash equivalents and restricted cash, beginning of period |
|
62,187 |
|
252,090 |
|
93,030 |
|
298,704 |
Cash and cash equivalents and restricted cash, end of period |
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$75,631 |
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$221,881 |
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$75,631 |
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$221,881 |
Supplemental cash flow information: |
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Cash paid for interest |
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$— |
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$— |
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$431 |
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$472 |
Cash paid for taxes |
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$60 |
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$— |
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$212 |
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$32 |
Noncash investing and financing activities: |
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Changes in capital additions, accrued but not paid |
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$125 |
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$9 |
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$190 |
|
$105 |
Fair value of shares issued as consideration for acquisition |
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$— |
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$4,614 |
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$— |
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$4,614 |
Reconciliation of cash, cash equivalents and restricted cash within the condensed consolidated balance sheet to the amounts shown in the statements of cash flows above: |
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Cash and cash equivalents |
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$74,517 |
|
$220,550 |
|
$74,517 |
|
$220,550 |
Restricted cash |
|
1,114 |
|
1,331 |
|
1,114 |
|
1,331 |
Total cash, cash equivalents and restricted cash |
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$75,631 |
|
$221,881 |
|
$75,631 |
|
$221,881 |
Exhibit 99.1
Disaggregated Revenue:
(unaudited)
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Three months ended June 30, |
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Six months ended June 30, |
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(in thousands) |
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2023 |
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2022 |
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2023 |
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2022 |
Subscription solutions |
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$56,135 |
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$51,285 |
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$109,943 |
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$99,272 |
Partner and services |
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19,308 |
|
16,918 |
|
37,257 |
|
34,981 |
Total revenue |
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$75,443 |
|
$68,203 |
|
$147,200 |
|
$134,253 |
Revenue by Geography:
(unaudited)
|
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Three months ended June 30, |
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Six months ended June 30, |
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(in thousands) |
|
2023 |
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2022 |
|
2023 |
|
2022 |
Revenue: |
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Americas – U.S. |
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$57,546 |
|
$52,760 |
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$112,355 |
|
$104,260 |
Americas – other |
|
3,422 |
|
2,988 |
|
6,773 |
|
5,672 |
EMEA |
|
8,649 |
|
6,802 |
|
16,633 |
|
13,086 |
APAC |
|
5,826 |
|
5,653 |
|
11,439 |
|
11,235 |
Total revenue |
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$75,443 |
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$68,203 |
|
$147,200 |
|
$134,253 |
Exhibit 99.1
Reconciliation of GAAP to Non-GAAP Results
(in thousands, except per share amounts)
Reconciliation of operating loss to Non-GAAP operating loss:
(unaudited)
|
|
Three months ended June 30, |
|
Six months ended June 30, |
||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
(in thousands) |
|
|
|
|
|
|
|
|
Operating loss |
|
$(20,895) |
|
$(39,140) |
|
$(44,553) |
|
$(75,320) |
Less: stock-based compensation expense |
|
11,290 |
|
10,578 |
|
21,777 |
|
19,540 |
Less: payroll tax associated with stock-based compensation expense |
|
82 |
|
356 |
|
233 |
|
502 |
Less: third-party acquisition related costs |
|
4,125 |
|
12,521 |
|
8,250 |
|
25,181 |
Less: restructuring charges |
|
— |
|
— |
|
420 |
|
— |
Less: amortization of intangible assets |
|
2,033 |
|
2,009 |
|
4,066 |
|
4,046 |
Non-GAAP operating loss |
|
$(3,365) |
|
$(13,676) |
|
$(9,807) |
|
$(26,051) |
Non-GAAP operating margin |
|
(4.5)% |
|
(20.1)% |
|
(6.7)% |
|
(19.4)% |
Reconciliation of net loss & net loss per share to Non-GAAP net loss & Non-GAAP net loss per share:
(unaudited)
|
|
Three months ended June 30, |
|
Six months ended June 30, |
||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
(in thousands) |
|
|
|
|
|
|
|
|
Net loss |
|
$(19,065) |
|
$(39,605) |
|
$(41,185) |
|
$(76,642) |
Less: stock-based compensation expense |
|
11,290 |
|
10,578 |
|
21,777 |
|
19,540 |
Less: payroll tax associated with stock-based compensation expense |
|
82 |
|
356 |
|
233 |
|
502 |
Less: third-party acquisition related costs |
|
4,125 |
|
12,521 |
|
8,250 |
|
25,181 |
Less: restructuring charges |
|
— |
|
— |
|
420 |
|
— |
Less: amortization of intangible assets |
|
2,033 |
|
2,009 |
|
4,066 |
|
4,046 |
Non-GAAP net loss |
|
$(1,535) |
|
$(14,141) |
|
$(6,439) |
|
$(27,373) |
Non-GAAP net loss per share |
|
$(0.02) |
|
$(0.19) |
|
$(0.09) |
|
$(0.38) |
Shares used to compute basic and diluted net loss per share |
|
74,790 |
|
73,084 |
|
74,468 |
|
72,782 |
Non-GAAP net loss margin |
|
(2.0)% |
|
(20.7)% |
|
(4.4)% |
|
(20.4)% |
Exhibit 99.1
Reconciliation of net loss to adjusted EBITDA:
(unaudited)
|
|
Three months ended June 30, |
|
Six months ended June 30, |
||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
(in thousands) |
|
|
|
|
|
|
|
|
Net loss |
|
$(19,065) |
|
$(39,605) |
|
$(41,185) |
|
$(76,642) |
Stock-based compensation expense |
|
11,290 |
|
10,578 |
|
21,777 |
|
19,540 |
Payroll tax associated with stock-based compensation expense |
|
82 |
|
356 |
|
233 |
|
502 |
Third-party acquisition related costs |
|
4,125 |
|
12,521 |
|
8,250 |
|
25,181 |
Restructuring charges |
|
— |
|
— |
|
420 |
|
— |
Depreciation |
|
906 |
|
812 |
|
1,778 |
|
1,601 |
Amortization of intangible assets |
|
2,033 |
|
2,009 |
|
4,066 |
|
4,046 |
Interest income |
|
(2,825) |
|
(577) |
|
(5,251) |
|
(699) |
Interest expense |
|
722 |
|
705 |
|
1,444 |
|
1,414 |
Other income/expense |
|
63 |
|
297 |
|
32 |
|
452 |
Provision for income |
|
210 |
|
40 |
|
407 |
|
155 |
Adjusted EBITDA |
|
$(2,459) |
|
$(12,864) |
|
$(8,029) |
|
$(24,450) |
Adjusted EBITDA Margin |
|
(3.3)% |
|
(18.9)% |
|
(5.5)% |
|
(18.2)% |
Reconciliation of cost of revenue to Non-GAAP cost of revenue:
(unaudited)
|
|
Three months ended June 30, |
|
Six months ended June 30, |
||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
(in thousands) |
|
|
|
|
|
|
|
|
Cost of revenue |
|
$18,756 |
|
$16,860 |
|
$36,202 |
|
$33,963 |
Less: share-based compensation expense |
|
1,281 |
|
978 |
|
2,457 |
|
1,840 |
Less: payroll tax associated with share-based compensation expense |
|
9 |
|
9 |
|
22 |
|
15 |
Non-GAAP cost of revenue |
|
$17,466 |
|
$15,873 |
|
$33,723 |
|
$32,108 |
As a % of revenue |
|
23.2% |
|
23.3% |
|
22.9% |
|
23.9% |
Reconciliation of sales and marketing expense to Non-GAAP sales and marketing expense:
(unaudited)
|
|
Three months ended June 30, |
|
Six months ended June 30, |
||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
(in thousands) |
|
|
|
|
|
|
|
|
Sales and marketing |
|
$35,593 |
|
$36,033 |
|
$69,645 |
|
$69,672 |
Less: share-based compensation expense |
|
3,529 |
|
3,523 |
|
6,337 |
|
6,434 |
Less: payroll tax associated with share-based compensation expense |
|
37 |
|
43 |
|
96 |
|
106 |
Non-GAAP sales and marketing |
|
$32,027 |
|
$32,467 |
|
$63,212 |
|
$63,132 |
As a % of revenue |
|
42.5% |
|
47.6% |
|
42.9% |
|
47.0% |
Exhibit 99.1
Reconciliation of research and development expense to Non-GAAP research and development expense:
(unaudited)
|
|
Three months ended June 30, |
|
Six months ended June 30, |
||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
(in thousands) |
|
|
|
|
|
|
|
|
Research and development |
|
$21,403 |
|
$22,394 |
|
$42,248 |
|
$43,339 |
Less: share-based compensation expense |
|
3,929 |
|
3,029 |
|
7,390 |
|
5,555 |
Less: payroll tax associated with share-based compensation expense |
|
14 |
|
13 |
|
56 |
|
50 |
Non-GAAP research and development |
|
$17,460 |
|
$19,352 |
|
$34,802 |
|
$37,734 |
As a % of revenue |
|
23.1% |
|
28.4% |
|
23.6% |
|
28.1% |
Reconciliation of general and administrative expense to Non-GAAP general and administrative expense:
(unaudited)
|
|
Three months ended June 30, |
|
Six months ended June 30, |
||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
(in thousands) |
|
|
|
|
|
|
|
|
General & administrative |
|
$14,428 |
|
$17,526 |
|
$30,922 |
|
$33,372 |
Less: share-based compensation expense |
|
2,551 |
|
3,048 |
|
5,593 |
|
5,711 |
Less: payroll tax associated with share-based compensation expense |
|
22 |
|
291 |
|
59 |
|
331 |
Non-GAAP general & administrative |
|
$11,855 |
|
$14,187 |
|
$25,270 |
|
$27,330 |
As a % of revenue |
|
15.7% |
|
20.8% |
|
17.2% |
|
20.4% |
Reconciliation of net cash used in operating activities to free cash flow:
(unaudited)
|
|
Three months ended June 30, |
|
Six months ended June 30, |
||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
(in thousands) |
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities |
|
$14,743 |
|
$(13,875) |
|
$(6,093) |
|
$(35,860) |
Purchase of property and equipment |
|
(1,017) |
|
(2,146) |
|
(2,080) |
|
(3,486) |
Free cash flow |
|
$13,726 |
|
$(16,021) |
|
$(8,173) |
|
$(39,346) |