Upwork Inc. (Nasdaq: UPWK), the world’s largest work marketplace
that connects businesses with independent talent, as measured by
gross services volume (“GSV”), today announced its fourth quarter
and full year 2020 financial results.
“2020 was a watershed year for Upwork. In the
fourth quarter, we achieved our highest year-over-year growth since
going public,” said Hayden Brown, President and Chief Executive
Officer of Upwork. “Nearly a year into the pandemic, organizations
are embracing remote work to unleash the potential of a global
workforce of independent talent that gives them the agility, skills
and efficiency they need. Our results demonstrate that we are
optimally positioned to capture the exciting opportunity ahead by
serving customers as the world’s work marketplace.”
Fourth Quarter 2020 Financial
Results
- GSV increased by
33% year-over-year to $727.7 million
- Revenue grew 32%
year-over-year to $106.2 million
- Marketplace
revenue grew 34% year-over-year to $96.9 million
- Marketplace take
rate was 13.5%, up from 13.3% a year ago
- Gross margin
expanded two percentage points year-over-year to 73%
- Net income was
$0.9 million, or $0.01 per share, compared to a net loss of $5.5
million, or $(0.05) per share, in the fourth quarter of 2019
- Non-GAAP net
income was $7.8 million, or $0.06 per share, compared to
non-GAAP net income of $3.4 million, or $0.03 per share, in the
fourth quarter of 2019
- Adjusted EBITDA, a
non-GAAP financial measure, was $9.6 million compared to $3.5
million in the fourth quarter of 2019
Full Year 2020 Financial
Results
- GSV increased by
21% year-over-year to $2.5 billion
- Revenue grew 24%
to $373.6 million
- Marketplace
revenue grew 26% to $338.2 million
- Marketplace take
rate was 13.6%, up from 13.1% a year ago
- Gross margin
expanded one percentage point year-over-year to 72%
- Net loss was $22.9
million, or $(0.19) per share, compared to a net loss of $16.7
million, or $(0.15) per share, in the prior year
- Non-GAAP net
income was $6.1 million, or $0.05 per share, compared to
non-GAAP net income of $5.5 million, or $0.05 per share, for full
year 2019
- Adjusted EBITDA
was $14.0 million compared to $7.4 million in the prior year
Note: Reported figures are rounded; unless
otherwise noted, comparisons of the fourth quarter of 2020 are to
the fourth quarter of 2019 and comparisons for the full year 2020
are to the full year 2019. All financial measures are GAAP unless
cited as non-GAAP. Certain operating metrics used here, including
“GSV” and “marketplace take rate,” are defined in our most recently
filed Quarterly Report on Form 10-Q and will also be set forth in
our Annual Report on Form 10-K for the year ended December 31, 2020
when filed.
A reconciliation of GAAP to non-GAAP financial
measures has been provided at the end of this press release. An
explanation of these measures is also included below under the
heading “Non-GAAP Financial Measures.”
Guidance
The guidance we are providing today factors in
the expected impacts of the COVID-19 pandemic that are available to
us as of today.
As of February 23, 2021, Upwork is providing the
following guidance for its first quarter and full year 2021:
For the first quarter of 2021, Upwork expects to
report:
- Revenue in the range of $107
million to $109 million
- Adjusted EBITDA in the range of $2
million to $3 million
- Weighted average shares outstanding
in the range of 126 million to 128 million
For the full year 2021, Upwork expects to
report:
- Revenue in the range of $460
million to $470 million
- Adjusted EBITDA in the range of $12
million to $16 million
- Weighted average shares outstanding
in the range of 130 million to 134 million
Fourth Quarter and Full Year 2020
Financial Results Conference Call and Webcast
Upwork will host a conference call today at 2
p.m. Pacific Time/5 p.m. Eastern Time to discuss the company’s
fourth quarter and full year 2020 financial results. An audio
webcast archive will be available following the live event for
approximately one year at investors.upwork.com. The prepared
remarks corresponding to the information reviewed on today’s
conference call will also be available on our Investor Relations
website, once the call has concluded.
We use our investor relations website
(investors.upwork.com), our Twitter handle (twitter.com/Upwork) and
Hayden Brown’s Twitter handle (twitter.com/hydnbrwn) and LinkedIn
profile (linkedin.com/in/haydenlbrown) as a means of disseminating
or providing notification of, among other things, news or
announcements regarding our business or financial performance,
investor events, press releases and earnings releases and as a
means of disclosing material non-public information and for
complying with our disclosure obligations under Regulation FD. The
content of our websites and information that we may post on or
provide to online and social media channels, including those
mentioned above, and information that can be accessed through our
websites or these online and social media channels are not
incorporated by reference into this press release or in any report
or document we file with the SEC, and any references to our
websites or these online and social media channels are intended to
be inactive textual references only.
Safe Harbor Statement
This press release includes forward-looking
statements, which are statements other than statements of
historical facts, and statements in the future tense. These
statements include, but are not limited to, statements regarding
the future performance of Upwork and its market opportunity,
including expected financial results for the first quarter and full
year of 2021, expectations regarding the impact of the COVID-19
pandemic on our business and industry, and expectations for
capturing market share and regarding the changing landscape of
work, as well as statements regarding our planned investments to
support growth. Accordingly, actual results could differ materially
or such uncertainties could cause adverse effects on our results.
Forward-looking statements are based upon various estimates and
assumptions, as well as information known to Upwork as of the date
of this press release, and are subject to risks and uncertainties,
including but not limited to: the impact and duration of the
COVID-19 pandemic on our business and global economic conditions;
the impact, severity and duration of safety measures put in place
to mitigate the impact of the COVID-19 pandemic; our ability to
attract and retain a community of freelancers and clients; our
limited operating history under our current business strategy and
pricing model; our focus on the long-term and our investments in
sustainable, profitable growth; our ability to develop and release
new products and services, and develop and release successful
enhancements, features, and modifications to our existing products
and services; the impact of new and existing laws and regulations;
our ability to generate revenue from our marketplace offerings and
the effects of fluctuations in our level of client spend retention;
our ability to develop, maintain, and enhance our brand and
reputation cost-effectively; competition; challenges to contractor
classification or employment status of freelancers on our work
marketplace; the possibility that the market for freelancers and
the services they offer will develop more slowly than we expect;
user circumvention of our work marketplace; our ability to sell to
large enterprise, global account, and mid-market clients; the
success of our investments in our enterprise sales organization and
our related marketing efforts, and expectations for the ability for
enterprise sales to drive incremental revenue and GSV growth;
changes in the amount and mix of services facilitated through our
work marketplace from period to period; changes in our level of
investment in sales and marketing, research and development, and
general and administrative expenses, and our hiring plans for sales
personnel; the market for information technology; future changes to
our pricing model; payment and fraud risks; security breaches;
privacy; litigation and related costs; changes in management; and
other general market, political, economic, and business conditions.
Actual results could differ materially from those predicted or
implied, and reported results should not be considered as an
indication of future performance. Additionally, these
forward-looking statements, particularly our guidance, involve
risks, uncertainties and assumptions, including those related to
the impacts of the COVID-19 pandemic on our clients’ spending
decisions. Significant variation from the assumptions underlying
our forward-looking statements could cause our actual results to
vary, and the impact could be significant.
Additional risks and uncertainties that could
affect our financial results are included under the caption “Risk
Factors” and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” in our most recent Annual
Report on Form 10-K and subsequent quarterly reports on Form 10-Q,
which are available on the Investor Relations page of our website
at investors.upwork.com and on the SEC website at www.sec.gov.
Additional information will also be set forth in our Annual Report
on Form 10-K for the year ended December 31, 2020 when filed. All
forward-looking statements contained herein are based on
information available to us as of the date hereof, and we do not
assume any obligation to update these statements as a result of new
information or future events.
Undue reliance should not be placed on the
forward-looking statements in this press release. These statements
are based on information available to Upwork on the date hereof,
and Upwork assumes no obligation to update such statements.
Non-GAAP Financial Measures
To supplement our condensed consolidated
financial statements, which are prepared in accordance with GAAP,
we present non-GAAP cost of revenue (and as a percentage of
revenue), non-GAAP gross profit (and as a percentage of revenue),
non-GAAP operating expenses (total and each line item, and total
and each non-GAAP operating expense item as a percentage of
revenue), non-GAAP income (loss) from operations (and as a
percentage of revenue), non-GAAP net income (loss) (and as a
percentage of revenue and on a per share basis), and adjusted
EBITDA in this press release. Our use of non-GAAP financial
measures has limitations as an analytical tool, and these measures
should not be considered in isolation or as a substitute for
analysis of financial results as reported under GAAP.
We use these non-GAAP financial measures in
conjunction with financial measures prepared in accordance with
GAAP for planning purposes, including in the preparation of our
annual operating budget, as a measure of our core operating results
and the effectiveness of our business strategy, and in evaluating
our financial performance. These measures provide consistency and
comparability with past financial performance, facilitate
period-to-period comparisons of core operating results, and also
facilitate comparisons with other peer companies, many of which use
similar non-GAAP financial measures to supplement their GAAP
results. In addition, adjusted EBITDA is widely used by investors
and securities analysts to measure a company’s operating
performance. We exclude the following items from one or more of our
non-GAAP financial measures: stock-based compensation expense
(non-cash expense calculated by companies using a variety of
valuation methodologies and subjective assumptions), depreciation
and amortization (non-cash expense), interest expense, other
(income) expense, net, income tax (benefit) provision, and, if
applicable, other non-cash transactions.
Investors are cautioned that there are material
limitations associated with the use of non-GAAP financial measures
as an analytical tool. In particular, (1) stock-based compensation
expense has recently been, and will continue to be for the
foreseeable future, a significant recurring expense for our
business and an important part of our compensation strategy, (2)
although depreciation and amortization expense are non-cash
charges, the assets subject to depreciation and amortization may
have to be replaced in the future, and adjusted EBITDA does not
reflect cash capital expenditure requirements for such replacements
or for new capital expenditure requirements, and (3) adjusted
EBITDA does not reflect: (a) changes in, or cash requirements for,
our working capital needs; (b) interest expense, or the cash
requirements necessary to service interest or principal payments on
our debt, which reduces cash available to us; (c) tax payments that
may represent a reduction in cash available to us; or (d) expense
from our common stock warrant issued to the Tides Foundation, which
is recurring and will be reflected in our financial results for the
foreseeable future. The non-GAAP measures we use may be different
from non-GAAP financial measures used by other companies, limiting
their usefulness for comparison purposes. We compensate for these
limitations by providing specific information regarding the GAAP
items excluded from these non-GAAP financial measures. A
reconciliation of these non-GAAP measures has been provided in the
financial statement tables included in this press release and
investors are encouraged to review the reconciliation.
About Upwork
Upwork is the world’s largest work marketplace
that connects businesses with independent talent, as measured by
GSV. We serve everyone from one-person startups to 30% of the
Fortune 100 with a powerful, trust-driven platform that enables
companies and freelancers to work together in new ways that unlock
their potential. Our talent community earned over $2.3 billion on
Upwork in 2020 across more than 10,000 skills, including website
& app development, creative & design, customer support,
finance & accounting, consulting, and operations. Learn more at
www.upwork.com and join us on LinkedIn, Twitter, and Facebook.
Upwork is a registered trademark of Upwork Inc.
All other product and brand names may be trademarks or registered
trademarks of their respective owners.
UPWORK INC.CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS(In
thousands, except for per share
data)(Unaudited)
|
Three Months Ended December
31, |
|
Twelve Months Ended December
31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Revenue |
|
|
|
|
|
|
|
Marketplace |
$ |
96,866 |
|
|
|
$ |
72,189 |
|
|
|
$ |
338,152 |
|
|
|
$ |
268,284 |
|
|
Managed services |
9,287 |
|
|
|
8,099 |
|
|
|
35,476 |
|
|
|
32,278 |
|
|
Total revenue |
106,153 |
|
|
|
80,288 |
|
|
|
373,628 |
|
|
|
300,562 |
|
|
Cost of revenue |
28,778 |
|
|
|
22,937 |
|
|
|
104,267 |
|
|
|
88,144 |
|
|
Gross profit |
77,375 |
|
|
|
57,351 |
|
|
|
269,361 |
|
|
|
212,418 |
|
|
Operating expenses |
|
|
|
|
|
|
|
Research and development |
22,743 |
|
|
|
16,322 |
|
|
|
83,471 |
|
|
|
64,027 |
|
|
Sales and marketing |
34,530 |
|
|
|
25,572 |
|
|
|
133,225 |
|
|
|
95,891 |
|
|
General and administrative |
18,545 |
|
|
|
21,134 |
|
|
|
71,518 |
|
|
|
67,327 |
|
|
Provision for transaction losses |
901 |
|
|
|
1,199 |
|
|
|
3,555 |
|
|
|
3,905 |
|
|
Total operating expenses |
76,719 |
|
|
|
64,227 |
|
|
|
291,769 |
|
|
|
231,150 |
|
|
Income (loss) from
operations |
656 |
|
|
|
(6,876 |
) |
|
|
(22,408 |
) |
|
|
(18,732 |
) |
|
Interest expense |
138 |
|
|
|
259 |
|
|
|
778 |
|
|
|
1,306 |
|
|
Other income, net |
(500 |
) |
|
|
(1,634 |
) |
|
|
(469 |
) |
|
|
(3,407 |
) |
|
Income (loss) before income
taxes |
1,018 |
|
|
|
(5,501 |
) |
|
|
(22,717 |
) |
|
|
(16,631 |
) |
|
Income tax provision |
(93 |
) |
|
|
— |
|
|
|
(150 |
) |
|
|
(28 |
) |
|
Net income (loss) |
$ |
925 |
|
|
|
$ |
(5,501 |
) |
|
|
$ |
(22,867 |
) |
|
|
$ |
(16,659 |
) |
|
|
|
|
|
|
|
|
|
Net income (loss) per share,
basic and diluted |
$ |
0.01 |
|
|
|
$ |
(0.05 |
) |
|
|
$ |
(0.19 |
) |
|
|
$ |
(0.15 |
) |
|
Weighted-average shares used to
compute net income (loss) per share, basic and diluted |
123,398 |
|
|
|
112,690 |
|
|
|
118,699 |
|
|
|
109,815 |
|
|
UPWORK INC.CONDENSED
CONSOLIDATED BALANCE SHEETS(In
thousands)(Unaudited)
|
As of December 31, |
|
2020 |
|
2019 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
94,081 |
|
|
|
$ |
48,392 |
|
|
Marketable securities |
75,570 |
|
|
|
85,481 |
|
|
Funds held in escrow, including funds in transit |
135,042 |
|
|
|
108,721 |
|
|
Trade and client receivables, net |
47,018 |
|
|
|
30,156 |
|
|
Prepaid expenses and other current assets |
9,090 |
|
|
|
7,885 |
|
|
Total current assets |
360,801 |
|
|
|
280,635 |
|
|
Property and equipment,
net |
28,139 |
|
|
|
21,454 |
|
|
Goodwill |
118,219 |
|
|
|
118,219 |
|
|
Intangible assets, net |
667 |
|
|
|
3,335 |
|
|
Operating lease asset |
19,729 |
|
|
|
21,908 |
|
|
Other assets, noncurrent |
1,672 |
|
|
|
829 |
|
|
Total assets |
$ |
529,227 |
|
|
|
$ |
446,380 |
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
6,455 |
|
|
|
$ |
652 |
|
|
Escrow funds payable |
135,042 |
|
|
|
108,721 |
|
|
Debt, current |
7,581 |
|
|
|
7,584 |
|
|
Accrued expenses and other current liabilities |
32,868 |
|
|
|
18,342 |
|
|
Deferred revenue |
16,801 |
|
|
|
13,799 |
|
|
Total current liabilities |
198,747 |
|
|
|
149,098 |
|
|
Debt, noncurrent |
3,142 |
|
|
|
10,699 |
|
|
Operating lease liability,
noncurrent |
20,506 |
|
|
|
21,186 |
|
|
Other liabilities,
noncurrent |
7,522 |
|
|
|
5,973 |
|
|
Total liabilities |
229,917 |
|
|
|
186,956 |
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
Common stock |
12 |
|
|
|
11 |
|
|
Additional paid-in capital |
494,122 |
|
|
|
431,370 |
|
|
Accumulated deficit |
(194,824 |
) |
|
|
(171,957 |
) |
|
Total stockholders’
equity |
299,310 |
|
|
|
259,424 |
|
|
Total liabilities and
stockholders’ equity |
$ |
529,227 |
|
|
|
$ |
446,380 |
|
|
UPWORK INC.CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS(In
thousands)(Unaudited)
|
Three Months Ended December
31, |
|
Twelve Months Ended December
31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
|
|
|
|
Net income (loss) |
$ |
925 |
|
|
|
$ |
(5,501 |
) |
|
|
$ |
(22,867 |
) |
|
|
$ |
(16,659 |
) |
|
Adjustments to reconcile net
income (loss) to net cash provided by (used in) operating
activities: |
|
|
|
|
|
|
|
Provision for transaction losses |
265 |
|
|
|
1,040 |
|
|
|
2,919 |
|
|
|
3,118 |
|
|
Depreciation and amortization |
2,728 |
|
|
|
2,163 |
|
|
|
10,172 |
|
|
|
6,661 |
|
|
Amortization of debt issuance costs |
18 |
|
|
|
13 |
|
|
|
61 |
|
|
|
52 |
|
|
Amortization of discount on purchases of marketable securities |
(9 |
) |
|
|
(210 |
) |
|
|
(320 |
) |
|
|
(1,158 |
) |
|
Amortization of operating lease asset |
933 |
|
|
|
886 |
|
|
|
3,860 |
|
|
|
3,945 |
|
|
Tides Foundation common stock warrant expense |
186 |
|
|
|
272 |
|
|
|
750 |
|
|
|
711 |
|
|
Stock-based compensation expense |
5,981 |
|
|
|
7,940 |
|
|
|
25,508 |
|
|
|
18,798 |
|
|
Loss on disposal of fixed assets |
44 |
|
|
|
14 |
|
|
|
44 |
|
|
|
14 |
|
|
Changes in operating assets
and liabilities: |
|
|
|
|
|
|
|
Trade and client receivables |
(7,510 |
) |
|
|
(3,815 |
) |
|
|
(20,000 |
) |
|
|
(10,918 |
) |
|
Prepaid expenses and other assets |
(914 |
) |
|
|
(662 |
) |
|
|
(1,198 |
) |
|
|
(2,069 |
) |
|
Operating lease liability |
(431 |
) |
|
|
(473 |
) |
|
|
(1,851 |
) |
|
|
(1,453 |
) |
|
Accounts payable |
735 |
|
|
|
(2,154 |
) |
|
|
5,822 |
|
|
|
(1,457 |
) |
|
Accrued expenses and other liabilities |
4,990 |
|
|
|
(4,016 |
) |
|
|
15,438 |
|
|
|
(2,957 |
) |
|
Deferred revenue |
1,012 |
|
|
|
3,560 |
|
|
|
4,027 |
|
|
|
4,430 |
|
|
Net cash provided by (used in) operating activities |
8,953 |
|
|
|
(943 |
) |
|
|
22,365 |
|
|
|
1,058 |
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
|
|
|
|
Purchases of marketable securities |
(37,066 |
) |
|
|
(36,836 |
) |
|
|
(107,281 |
) |
|
|
(168,786 |
) |
|
Proceeds from maturities of marketable securities |
28,500 |
|
|
|
12,000 |
|
|
|
117,500 |
|
|
|
84,500 |
|
|
Purchases of property and equipment |
(110 |
) |
|
|
(522 |
) |
|
|
(6,320 |
) |
|
|
(10,752 |
) |
|
Internal-use software and platform development costs |
(2,478 |
) |
|
|
(1,832 |
) |
|
|
(8,045 |
) |
|
|
(5,886 |
) |
|
Net cash used in investing activities |
(11,154 |
) |
|
|
(27,190 |
) |
|
|
(4,146 |
) |
|
|
(100,924 |
) |
|
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
|
|
|
|
Changes in escrow funds payable |
6,912 |
|
|
|
(5,872 |
) |
|
|
26,321 |
|
|
|
10,535 |
|
|
Proceeds from exercises of stock options and common stock
warrant |
7,685 |
|
|
|
4,181 |
|
|
|
31,028 |
|
|
|
18,155 |
|
|
Proceeds from borrowings on debt |
— |
|
|
|
— |
|
|
|
18,000 |
|
|
|
50,000 |
|
|
Repayment of debt |
(1,892 |
) |
|
|
(1,893 |
) |
|
|
(25,621 |
) |
|
|
(55,679 |
) |
|
Proceeds from employee stock purchase plan |
2,252 |
|
|
|
2,814 |
|
|
|
4,913 |
|
|
|
6,391 |
|
|
Net cash provided by (used in) financing activities |
14,957 |
|
|
|
(770 |
) |
|
|
54,641 |
|
|
|
29,402 |
|
|
NET CHANGE IN CASH, CASH
EQUIVALENTS, AND RESTRICTED CASH |
12,756 |
|
|
|
(28,903 |
) |
|
|
72,860 |
|
|
|
(70,464 |
) |
|
Cash, cash equivalents, and
restricted cash—beginning of period |
219,707 |
|
|
|
188,506 |
|
|
|
159,603 |
|
|
|
230,067 |
|
|
Cash, cash equivalents, and
restricted cash—end of period |
$ |
232,463 |
|
|
|
$ |
159,603 |
|
|
|
$ |
232,463 |
|
|
|
$ |
159,603 |
|
|
The below table reconciles cash, cash
equivalents, and restricted cash as reported in the condensed
consolidated balance sheets to the total of the same amounts shown
in the condensed consolidated statements of cash flows as of
December 31, 2020 and 2019 (in thousands):
|
As of December 31, |
|
2020 |
|
2019 |
Cash and cash equivalents |
$ |
94,081 |
|
|
$ |
48,392 |
|
Restricted cash |
3,340 |
|
|
2,490 |
|
Funds held in escrow,
including funds in transit |
135,042 |
|
|
108,721 |
|
Total cash, cash equivalents,
and restricted cash as shown in the consolidated statement of cash
flows |
$ |
232,463 |
|
|
$ |
159,603 |
|
UPWORK INC.COST OF
REVENUE AND GROSS MARGIN(In
thousands)(Unaudited)
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
2020 |
|
2019 |
|
Change |
|
2020 |
|
2019 |
|
Change |
Cost of revenue |
$ |
28,778 |
|
|
$ |
22,937 |
|
|
$ |
5,841 |
|
25 |
% |
|
$ |
104,267 |
|
|
$ |
88,144 |
|
|
$ |
16,123 |
|
18 |
% |
Components of cost of
revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs of freelancer services to deliver managed services |
7,377 |
|
|
6,620 |
|
|
757 |
|
11 |
% |
|
28,703 |
|
|
26,763 |
|
|
1,940 |
|
7 |
% |
Other components of cost of revenue |
21,401 |
|
|
16,317 |
|
|
5,084 |
|
31 |
% |
|
75,564 |
|
|
61,381 |
|
|
14,183 |
|
23 |
% |
Total gross margin |
73 |
% |
|
71 |
% |
|
|
|
|
72 |
% |
|
71 |
% |
|
|
|
UPWORK
INC.RECONCILIATION OF GAAP TO NON-GAAP
RESULTS(In thousands, except for per share
data)(Unaudited)
|
Three Months Ended December
31, |
|
Twelve Months Ended December
31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
GAAP Net Income (Loss) |
$ |
925 |
|
|
|
$ |
(5,501 |
) |
|
|
$ |
(22,867 |
) |
|
|
$ |
(16,659 |
) |
|
Add back (deduct): |
|
|
|
|
|
|
|
Stock-based compensation |
5,981 |
|
|
|
7,940 |
|
|
|
25,508 |
|
|
|
18,798 |
|
|
Depreciation and amortization |
2,728 |
|
|
|
2,163 |
|
|
|
10,172 |
|
|
|
6,661 |
|
|
Interest expense |
138 |
|
|
|
259 |
|
|
|
778 |
|
|
|
1,306 |
|
|
Other income, net |
(500 |
) |
|
|
(1,634 |
) |
|
|
(469 |
) |
|
|
(3,407 |
) |
|
Provision for income tax |
93 |
|
|
|
— |
|
|
|
150 |
|
|
|
28 |
|
|
Tides Foundation common stock warrant expense |
186 |
|
|
|
272 |
|
|
|
750 |
|
|
|
711 |
|
|
Non-GAAP Adjusted EBITDA |
$ |
9,551 |
|
|
|
$ |
3,499 |
|
|
|
$ |
14,022 |
|
|
|
$ |
7,438 |
|
|
|
|
|
|
|
|
|
|
Cost of Revenue
Reconciliation: |
|
|
|
|
|
|
|
Cost of revenue, GAAP |
$ |
28,778 |
|
|
|
$ |
22,937 |
|
|
|
$ |
104,267 |
|
|
|
$ |
88,144 |
|
|
Stock-based compensation |
(200 |
) |
|
|
(130 |
) |
|
|
(779 |
) |
|
|
(456 |
) |
|
Cost of revenue, Non-GAAP |
$ |
28,578 |
|
|
|
$ |
22,807 |
|
|
|
$ |
103,488 |
|
|
|
$ |
87,688 |
|
|
% of revenue, GAAP |
27 |
|
% |
|
29 |
|
% |
|
28 |
|
% |
|
29 |
|
% |
% of revenue, Non-GAAP |
27 |
|
% |
|
28 |
|
% |
|
28 |
|
% |
|
29 |
|
% |
|
|
|
|
|
|
|
|
Gross Profit
Reconciliation: |
|
|
|
|
|
|
|
Gross profit, GAAP |
$ |
77,375 |
|
|
|
$ |
57,351 |
|
|
|
$ |
269,361 |
|
|
|
$ |
212,418 |
|
|
Stock-based compensation |
200 |
|
|
|
130 |
|
|
|
779 |
|
|
|
456 |
|
|
Gross profit, Non-GAAP |
$ |
77,575 |
|
|
|
$ |
57,481 |
|
|
|
$ |
270,140 |
|
|
|
$ |
212,874 |
|
|
% of revenue, GAAP |
73 |
|
% |
|
71 |
|
% |
|
72 |
|
% |
|
71 |
|
% |
% of revenue, Non-GAAP |
73 |
|
% |
|
72 |
|
% |
|
72 |
|
% |
|
71 |
|
% |
|
|
|
|
|
|
|
|
Operating Expenses
Reconciliation: |
|
|
|
|
|
|
|
Research and development,
GAAP |
$ |
22,743 |
|
|
|
$ |
16,322 |
|
|
|
$ |
83,471 |
|
|
|
$ |
64,027 |
|
|
Stock-based compensation |
(2,497 |
) |
|
|
(1,902 |
) |
|
|
(9,783 |
) |
|
|
(6,471 |
) |
|
Research and development, Non-GAAP |
$ |
20,246 |
|
|
|
$ |
14,420 |
|
|
|
$ |
73,688 |
|
|
|
$ |
57,556 |
|
|
% of revenue, GAAP |
21 |
|
% |
|
20 |
|
% |
|
22 |
|
% |
|
21 |
|
% |
% of revenue, Non-GAAP |
19 |
|
% |
|
18 |
|
% |
|
20 |
|
% |
|
19 |
|
% |
|
|
|
|
|
|
|
|
Sales and marketing, GAAP |
$ |
34,530 |
|
|
|
$ |
25,572 |
|
|
|
$ |
133,225 |
|
|
|
$ |
95,891 |
|
|
Stock-based compensation |
(988 |
) |
|
|
(749 |
) |
|
|
(4,440 |
) |
|
|
(2,609 |
) |
|
Sales and marketing, Non-GAAP |
$ |
33,542 |
|
|
|
$ |
24,823 |
|
|
|
$ |
128,785 |
|
|
|
$ |
93,282 |
|
|
% of revenue, GAAP |
33 |
|
% |
|
32 |
|
% |
|
36 |
|
% |
|
32 |
|
% |
% of revenue, Non-GAAP |
32 |
|
% |
|
31 |
|
% |
|
34 |
|
% |
|
31 |
|
% |
|
|
|
|
|
|
|
|
General and administrative,
GAAP |
$ |
18,545 |
|
|
|
$ |
21,134 |
|
|
|
$ |
71,518 |
|
|
|
$ |
67,327 |
|
|
Stock-based compensation |
(2,296 |
) |
|
|
(5,159 |
) |
|
|
(10,506 |
) |
|
|
(9,262 |
) |
|
Amortization of intangible
assets |
(667 |
) |
|
|
(667 |
) |
|
|
(2,668 |
) |
|
|
(2,668 |
) |
|
Tides Foundation common stock
warrant expense |
(186 |
) |
|
|
(272 |
) |
|
|
(750 |
) |
|
|
(711 |
) |
|
General and administrative, Non-GAAP |
$ |
15,396 |
|
|
|
$ |
15,036 |
|
|
|
$ |
57,594 |
|
|
|
$ |
54,686 |
|
|
% of revenue, GAAP |
17 |
|
% |
|
26 |
|
% |
|
19 |
|
% |
|
22 |
|
% |
% of revenue, Non-GAAP |
15 |
|
% |
|
19 |
|
% |
|
15 |
|
% |
|
18 |
|
% |
|
|
|
|
|
|
|
|
Income (Loss) from
Operations Reconciliation: |
|
|
|
|
|
|
|
Income (loss) from operations,
GAAP |
$ |
656 |
|
|
|
$ |
(6,876 |
) |
|
|
$ |
(22,408 |
) |
|
|
$ |
(18,732 |
) |
|
Stock-based compensation |
5,981 |
|
|
|
7,940 |
|
|
|
25,508 |
|
|
|
18,798 |
|
|
Amortization of intangible
assets |
667 |
|
|
|
667 |
|
|
|
2,668 |
|
|
|
2,668 |
|
|
Tides Foundation common stock
warrant expense |
186 |
|
|
|
272 |
|
|
|
750 |
|
|
|
711 |
|
|
Income from operations, Non-GAAP |
$ |
7,490 |
|
|
|
$ |
2,003 |
|
|
|
$ |
6,518 |
|
|
|
$ |
3,445 |
|
|
% of revenue, GAAP |
1 |
|
% |
|
-9 |
|
% |
|
-6 |
|
% |
|
-6 |
|
% |
% of revenue, Non-GAAP |
7 |
|
% |
|
2 |
|
% |
|
2 |
|
% |
|
1 |
|
% |
|
|
|
|
|
|
|
|
Net Income (Loss)
Reconciliation: |
|
|
|
|
|
|
|
Net income (loss), GAAP |
$ |
925 |
|
|
|
$ |
(5,501 |
) |
|
|
$ |
(22,867 |
) |
|
|
$ |
(16,659 |
) |
|
Stock-based compensation |
5,981 |
|
|
|
7,940 |
|
|
|
25,508 |
|
|
|
18,798 |
|
|
Amortization of intangible
assets |
667 |
|
|
|
667 |
|
|
|
2,668 |
|
|
|
2,668 |
|
|
Tides Foundation common stock
warrant expense |
186 |
|
|
|
272 |
|
|
|
750 |
|
|
|
711 |
|
|
Net income, Non-GAAP |
$ |
7,759 |
|
|
|
$ |
3,378 |
|
|
|
$ |
6,059 |
|
|
|
$ |
5,518 |
|
|
% of revenue, GAAP |
1 |
|
% |
|
-7 |
|
% |
|
-6 |
|
% |
|
-6 |
|
% |
% of revenue, Non-GAAP |
7 |
|
% |
|
4 |
|
% |
|
2 |
|
% |
|
2 |
|
% |
|
|
|
|
|
|
|
|
Net Income (Loss) per
Share Reconciliation: |
|
|
|
|
|
|
|
Weighted-average shares
outstanding |
123,398 |
|
|
|
112,690 |
|
|
|
118,699 |
|
|
|
109,815 |
|
|
Net income (loss) per share,
GAAP |
$ |
0.01 |
|
|
|
$ |
(0.05 |
) |
|
|
$ |
(0.19 |
) |
|
|
$ |
(0.15 |
) |
|
Net income per share,
Non-GAAP |
$ |
0.06 |
|
|
|
$ |
0.03 |
|
|
|
$ |
0.05 |
|
|
|
$ |
0.05 |
|
|
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