Fitbit : Supplemental Financial ( PDF 669 KB )

Non-GAAP Financial Measures

This supplemental financial information contains financial measures that have not been prepared in accordance with generally accepted accounting principles in the United States (GAAP). We use the following non-GAAP financial measures: non-GAAP gross profit; non-GAAP gross margin; non-GAAP operating expenses; non-GAAP operating income (loss); non-GAAP income (loss) before income taxes; non-GAAP net income (loss); non-GAAP diluted shares; non-GAAP net income (loss) per share; free cash flow; non-GAAP research and development expenses, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses, adjusted EBITDA and non-GAAP effective tax rate. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP.

We use non-GAAP measures to internally evaluate and analyze financial results. We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and enable comparison of our financial results with other public companies, many of which present similar non-GAAP financial measures.

There are limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, many of the adjustments to our GAAP financial measures reflect the exclusion of certain items, specifically stock-based compensation expense, acquisition-related costs, depreciation, amortization of intangible assets, impairment of equity investment, interest income, net, and the related income tax effects of the aforementioned exclusions, that may be recurring and will be reflected in our financial results for the foreseeable future. In addition, these measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes.

The following are explanations of the adjustments that are reflected in one or more of our non-GAAP financial measures:

• Stock-basedcompensation expense relates to equity awards granted primarily to our employees. We exclude stock-based compensation expense because we believe that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance. In particular, companies calculate stock-based compensation expense using a variety of valuation methodologies and subjective assumptions.
• Acquisition-relatedcosts relates to acquisition retention bonuses, integration costs, advisory and consulting, legal, accounting, tax, other professional service fees, and SEC filing fees to the extent associated with the pending Merger Agreement with Google or our acquisition of other companies.
• Restructuring costs primarily includedseverance-related costs. We believe that excluding this expense provides greater visibility to the underlying performance of our business operations, facilitates comparison of our results with other periods, and may also facilitate comparison with the results of other companies in our industry.
• Litigation expense relates to legal costs incurred due to litigation with Aliphcom, Inc. d/b/a Jawbone, or Jawbone. We exclude these expenses because we do not believe they have a direct correlation to the operations of our business and because of the singular nature of the claims underlying the Jawbone litigation matters. We began excluding Jawbone litigation costs in the second quarter of 2016 as these costs significantly increased in 2016.
• In March 2014, we recalled the Fitbit Force after some of our users experienced allergic reactions to adhesives in the wristband. This recall primarily impacted our results for the fourth quarter of 2013, the first quarter of 2014, and the fourth quarter of 2015.
• Revaluation of redeemable convertible preferred stock warrant liability is anon-cash charge that will not recur in the periods following our initial public offering.
• Amortization of intangible assets relates to our acquisitions of FitStar, Pebble, Vector and Twine Health. We exclude these amortization expenses because we do not believe they have a direct correlation to the operation of our business.
• Anon-recurring impairment charge of $6 million to reflect the write-down of an equity investment.
• The change in contingent consideration relates to our acquisition of FitStar. This is anon-recurring benefit that has no direct correlation to our business performance.
• Income tax effect ofnon-GAAP adjustments relates to the tax effect of the adjustments that we incorporate into non-GAAP financial measures such as stock-based compensation, amortization of intangibles, restructuring and valuation allowance, in order to provide a more meaningful measure of non-GAAP net income (loss).
• Adjustment to shares includes the conversion of the redeemable convertible preferred stock into shares of common stock as though the conversion had occurred at the beginning of all periods presented, and the shares issued in our initial public offering in June 2015, as if they had been outstanding since the beginning of the second quarter of 2015, and the shares issued in ourfollow-on offering in November 2015, as if they had been outstanding since the beginning of the fourth quarter of 2015.
• We define free cash flow as net cash provided by (used in) operating activities adjusted by purchase of property and equipment. We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that can possibly be used for investing in our business and strengthening the balance sheet, but it is not intended to represent the residual cash flow available for discretionary expenditures.

Fitbit, Inc.
Condensed Consolidated Balance Sheets - Fiscal Quarters
(in thousands)																									As of
		Mar 31		Jun 30		Sep 30		Dec 31		Mar 31		Jun 30		Sep 30		Dec 31		Mar 31		Jun 30		Sep 30		Dec 31		Apr 2		Jul 2		Oct 1		Dec 31		Apr 1		July 1		Sep 30		Dec 31		Mar 31		Jun 30		Sep 29		Dec 31		Mar 30		Jun 29		Sep 28		Dec 31
		2013		2013		2013		2013		2014		2014		2014		2014		2015		2015		2015		2015		2016		2016		2016		2016		2017		2017		2017		2017		2018		2018		2018		2018		2019		2019		2019		2019
Assets
Current assets:
Cash and cash equivalents	$	15,119	$	36,535	$	57,231	$	81,728	$	98,703	$	103,990	$	63,957	$	195,626	$	237,849	$	461,276	$	462,280	$	535,846	$	722,062	$	416,142	$	284,220	$	301,320	$	374,279	$	318,708	$	280,681	$	341,966	$	378,360	$	328,116	$	402,237	$	473,956	$	410,813	$	335,229	$	287,431	$	334,479
Marketable securities		-		-		-		-		-		-		-		-		-		-		113,198		128,632		69,652		343,534		387,882		404,693		351,837		357,090		378,548		337,334		279,994		252,347		221,083		249,493		233,383		229,708		214,817		184,023
Accounts receivable, net		14,982		28,146		45,527		80,624		49,683		51,126		77,933		238,859		161,736		252,023		244,921		469,260		339,669		377,545		461,351		477,825		194,834		216,346		260,990		406,019		214,355		242,038		325,964		414,209		250,582		258,599		345,562		435,269
Inventories		15,202		16,938		23,952		56,441		53,051		54,235		60,641		115,072		137,509		186,870		276,083		178,146		212,092		190,644		214,955		230,387		200,331		141,504		138,781		123,895		145,373		140,430		195,112		124,871		174,478		161,931		245,096		136,752
Income tax receivable		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		77,882		77,746		78,385		8,962		6,957		6,917		7,365		965		573
Prepaid expenses and other current assets		492		1,016		3,554		3,185		5,763		6,492		7,165		13,614		22,012		18,163		21,199		43,530		60,006		59,782		86,372		66,346		58,775		97,717		173,654		97,269		59,109		63,227		45,541		42,325		26,481		24,124		33,376		28,656
Restricted cash		-		-		-		2,310		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Total current assets		45,795		82,635		130,264		224,288		207,200		215,843		209,697		563,171		559,106		918,332		1,117,681		1,355,414		1,403,481		1,387,647		1,434,780		1,480,571		1,180,056		1,131,365		1,232,654		1,384,365		1,154,937		1,104,543		1,198,899		1,311,811		1,102,654		1,016,956		1,127,247		1,119,752
Property and equipment, net		2,527		4,809		5,619		6,486		7,162		15,278		24,376		26,435		28,022		90,945		35,728		44,501		51,579		74,181		94,311		76,553		85,039		80,135		90,823		104,908		104,530		110,185		106,520		106,286		95,275		91,718		88,232		82,756
Operating right-of-use assets		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		99,144		75,528		71,529		70,225
Goodwill		-		-		-		-		-		-		-		-		22,562		22,157		22,157		22,157		22,157		25,217		25,217		51,036		51,036		51,036		51,036		51,036		60,929		61,058		61,058		60,979		60,979		60,979		60,979		64,812
Intangible assets, net		-		-		-		-		-		-		-		-		13,812		13,263		12,749		12,216		11,683		15,090		14,578		27,521		26,145		24,768		23,943		22,356		29,797		27,740		25,680		23,620		21,559		19,499		17,519		16,746
Deferred tax assets		-		-		-		-		-		-		26,693		42,001		44,457		60,693		72,870		83,020		87,601		119,472		110,814		175,797		184,040		162,899		46,221		3,990		4,158		3,528		3,920		4,489		4,436		4,222		3,925		4,111
Other assets		-		-		-		-		483		442		1,586		1,444		1,390		1,240		1,272		1,758		1,773		1,504		10,526		10,448		12,340		10,886		9,900		15,420		14,750		16,147		10,003		8,362		10,423		9,278		7,170		9,684
Total assets	$	48,322	$	87,444	$	135,833	$	230,774	$	214,845	$	231,563	$	262,351	$	633,051	$	669,349	$	1,046,630	$	1,262,457	$	1,519,066	$	1,578,274	$	1,623,111	$	1,690,226	$	1,821,926	$	1,538,656	$	1,461,089	$	1,454,577	$	1,582,075	$	1,369,101	$	1,323,201	$	1,406,080	$	1,515,547	$	1,394,470	$	1,278,180	$	1,376,601	$	1,368,086
Liabilities, Convertible Preferred Stock,
and Stockholders' Equity (Deficit)
Current liabilities:
Accounts payable	$	14,040	$	15,881	$	22,058	$	70,896	$	29,798	$	47,597	$	57,401	$	195,666	$	136,425	$	193,594	$	320,195	$	260,842	$	238,696	$	226,418	$	253,138	$	313,773	$	127,542	$	83,966	$	178,476	$	212,731	$	132,910	$	155,970	$	232,991	$	251,657	$	165,551	$	157,204	$	263,181	$	194,626
Accrued liabilities		6,158		10,021		14,316		28,565		21,773		20,173		27,752		70,940		73,860		79,618		98,258		194,977		232,427		231,921		218,526		389,308		338,940		346,764		345,572		451,673		382,052		376,884		386,315		437,214		363,751		332,857		365,812		513,530
Operating lease liabilities		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		30,209		23,907		23,313		23,511
Deferred revenue		1,337		2,031		2,693		5,606		5,756		7,520		8,204		9,009		17,024		21,346		27,077		44,448		50,929		46,420		45,001		42,612		46,904		44,427		40,058		35,504		31,272		28,116		27,350		29,400		28,655		28,076		28,076		32,307
Fitbit Force Recall reserve		-		-		-		82,938		84,239		57,074		31,029		22,476		15,104		12,894		11,659		5,122		4,339		2,148		1,494		1,253		956		753		585		464		332		174		69		20		-		-		-		-
Income taxes payable		1,606		4,274		10,366		17,841		9,541		16,375		10,264		30,631		17,723		795		2,472		2,868		1,671		2,074		1,231		9,394		2,466		599		293		928		755		22,729		6,580		1,092		1,349		578		986		636
Long-term debt, current portion		778		1,713		2,849		3,985		38,523		37,789		7,548		132,589		159,611		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Total current liabilities		23,919		33,920		52,282		209,831		189,630		186,528		142,198		461,311		419,747		308,247		459,661		508,257		528,062		508,981		519,390		756,340		516,808		476,509		564,984		701,300		547,321		583,873		653,305		719,383		589,515		542,622		681,368		764,610
Long-term deferred revenue																																7,292		-		-		-		6,928		5,176		4,719		5,458		7,436		5,922		5,285		6,174		8,535
Long-term operating lease liabilities		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		98,219		75,309		70,202		67,902
Other liabilities		585		1,221		3,579		7,420		7,870		8,421		10,418		12,867		13,750		15,031		18,624		29,358		36,886		47,473		53,732		59,762		56,280		59,244		57,958		49,884		54,345		55,650		52,596		52,790		29,001		29,420		29,883		39,776
Long-term debt, less current portion		10,448		9,475		8,124		6,725		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Redeemable convertible preferred stock warrant liability		834		1,329		2,553		4,028		5,381		9,222		9,346		15,797		26,132		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Total liabilities		35,786		45,945		66,538		228,004		202,881		204,171		161,962		489,975		459,629		323,278		478,285		537,615		564,948		556,454		573,122		823,394		573,088		535,753		622,942		758,112		606,842		644,242		711,359		779,609		722,657		652,636		787,627		880,823
Redeemable convertible preferred stock		23,425		49,248		66,236		66,236		66,236		66,236		67,814		67,814		67,814		-		-		-		-		-		-		-		-		-		-														-		-		-
Total stockholders' equity (deficit)		(10,889)		(7,749)		3,109		(63,466)		(54,272)		(38,844)		32,575		75,262		141,906		723,352		784,172		981,451		1,013,326		1,066,657		1,117,104		998,532		965,568		925,336		831,635		823,963		762,259		678,959		694,721		735,938		671,813		625,544		588,974		487,263
Total liabilities, convertible preferred stock,																																																				-		-		-
and stockholders' equity (deficit)	$	48,322	$	87,444	$	135,833	$	230,774	$	214,845	$	231,563	$	262,351	$	633,051	$	669,349	$	1,046,630	$	1,262,457	$	1,519,066	$	1,578,274	$	1,623,111	$	1,690,226	$	1,821,926	$	1,538,656	$	1,461,089	$	1,454,577	$	1,582,075	$	1,369,101	$	1,323,201	$	1,406,080	$	1,515,547	$	1,394,470	$	1,278,180	$	1,376,601	$	1,368,086

Fitbit, Inc.

Condensed Consolidated Statements of Operations - Fiscal Quarters (in thousands)

		Q1 2013		Q2 2013		Q3 2013		Q4 2013		Q1 2014		Q2 2014		Q3 2014		Q4 2014		Q1 2015		Q2 2015		Q3 2015		Q4 2015		Q1 2016		Q2 2016		Q3 2016		Q4 2016		Q1 2017		Q2 2017		Q3 2017		Q4 2017		Q1 2018		Q2 2018		Q3 2018		Q4 2018		Q1 2019		Q2 2019		Q3 2019		Q4 2019
Revenue (GAAP)	$	33,121	$	47,169	$	83,667	$	107,130	$	108,815	$	113,572	$	152,862	$	370,184	$	336,754	$	400,412	$	409,262	$	711,570	$	505,356	$	586,528	$	503,802	$	573,775	$	298,942	$	353,299	$	392,522	$	570,756	$	247,865	$	299,344	$	393,575	$	571,199	$	271,890	$	313,556	$	347,200	$	502,142
Plus:
Impact of Fitbit Force recall		-		-		-		30,607		11,561		-		-		(3,449)		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Revenue (Non-GAAP)	$	33,121	$	47,169	$	83,667	$	137,737	$	120,376	$	113,572	$	152,862	$	366,735	$	336,754	$	400,412	$	409,262	$	711,570	$	505,356	$	586,528	$	503,802	$	573,775	$	298,942	$	353,299	$	392,522	$	570,756	$	247,865	$	299,344	$	393,575	$	571,199	$	271,890	$	313,556	$	347,200	$	502,142
Cost of revenue		18,132		25,947		42,412		124,345		64,046		55,183		69,257		199,290		167,545		212,870		213,249		363,271		271,601		341,559		263,144		447,273		180,643		204,054		217,762		322,159		133,742		180,329		240,061		354,272		182,437		205,342		239,248		380,089
Gross profit (GAAP)		14,989		21,222		41,255		(17,215)		44,769		58,389		83,605		170,894		169,209		187,542		196,013		348,299		233,755		244,969		240,658		126,502		118,299		149,245		174,760		248,597		114,123		119,015		153,514		216,927		89,453		108,214		107,952		122,053
Gross margin (GAAP)		45.3%		45.0%		49.3%		(16.1)%		41.1%		51.4%		54.7%		46.2%		50.2%		46.8%		47.9%		48.9%		46.3%		41.8%		47.8%		22.1%		39.6%		42.2%		44.5%		43.6%		46.0%		39.8%		39.0%		38.0%		32.9%		34.5%		31.1%		24.3%
Plus:
Stock-based compensation expense		2		4		8		23		59		129		346		356		446		825		1,351		2,117		1,309		1,084		1,014		1,390		18		1,492		1,379		2,423		1,098		2,032		1,999		2,183		1,430		1,521		1,446		2,006
Acquisition-related costs		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		5,638
Impact of restructuring		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		37		-		-		-		-		-		-		-		190		-		-		-
Impact of Fitbit Force recall		-		-		-		81,812		22,163		-		(1,485)		(1,227)		(2,040)		-		-		(3,715)		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Intangible assets amortization		-		-		-		-		-		-		-		-		-		467		432		451		451		451		451		453		1,319		1,319		1,381		1,516		1,516		1,516		2,304		1,853		1,854		1,853		1,773		2,392
Gross profit (Non-GAAP)		14,991		21,226		41,263		64,620		66,991		58,518		82,466		170,023		167,615		188,834		197,796		347,152		235,515		246,504		242,123		128,345		119,673		152,056		177,520		252,536		116,737		122,563		157,817		220,963		92,927		111,588		111,171		132,089
Gross margin (Non-GAAP)		45.3%		45.0%		49.3%		46.9%		55.7%		51.5%		53.9%		46.4%		49.8%		47.2%		48.3%		48.8%		46.6%		42.0%		48.1%		22.4%		40.0%		43.0%		45.2%		44.2%		47.1%		40.9%		40.1%		38.7%		34.2%		35.6%		32.0%		26.3%
Research and development (GAAP)		5,346		6,507		7,766		8,254		9,088		11,809		14,945		18,325		22,426		30,492		42,890		54,227		72,248		79,909		82,972		85,062		87,758		80,543		84,170		90,541		89,336		87,047		79,840		75,946		77,039		70,919		65,693		86,703
Less:
Stock-based compensation expense		(40)		(55)		(75)		(118)		(92)		(192)		(873)		(1,192)		(1,879)		(3,138)		(5,893)		(7,341)		(10,393)		(11,725)		(12,314)		(12,775)		(14,344)		(12,648)		(12,947)		(13,842)		(14,671)		(15,090)		(14,097)		(13,330)		(11,988)		(11,892)		(10,557)		(10,418)
Acquisition-related costs		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		(18,411)
Impact of restructuring		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		(2,744)		-		-		-		-		-		-		-		(1,550)		-		-		-
Research and development (Non-GAAP)		5,306		6,452		7,691		8,136		8,996		11,617		14,072		17,133		20,547		27,354		36,997		46,886		61,855		68,184		70,658		72,287		70,670		67,895		71,223		76,699		74,665		71,957		65,743		62,616		63,501		59,027		55,136		57,874
Sales and marketing (GAAP)		4,217		5,433		6,159		11,038		11,273		13,311		17,539		69,882		43,867		69,690		65,115		154,069		107,051		118,138		79,872		186,194		91,174		100,732		77,536		145,600		72,052		100,845		66,676		104,518		68,616		83,060		71,296		106,828
Less:
Stock-based compensation expense		(14)		(42)		(64)		(84)		(63)		(120)		(466)		(645)		(1,307)		(1,322)		(2,451)		(2,339)		(2,535)		(2,927)		(3,030)		(3,083)		(3,248)		(3,987)		(3,679)		(3,658)		(3,447)		(3,911)		(3,638)		(3,730)		(3,138)		(3,175)		(2,587)		(2,685)
Acquisition-related costs		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		(4,222)
Impact of restructuring		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		(2,000)		-		-		-		-		-		-		-		(589)		-		-		-
Intangible assets amortization																																										(161)		(470)		315		(135)		(135)		(136)		(135)		(135)
Sales and marketing (Non-GAAP)		4,203		5,391		6,095		10,954		11,210		13,191		17,073		69,237		42,560		68,368		62,664		151,730		104,516		115,211		76,842		183,111		85,926		96,745		73,857		141,942		68,444		96,464		63,353		100,653		64,754		79,749		68,574		99,786
General and administrative (GAAP)		1,338		2,154		2,853		8,140		8,617		7,443		7,849		9,647		12,981		14,648		20,698		29,466		35,702		37,262		33,333		40,606		30,746		31,379		40,690		31,119		36,088		30,211		24,812		25,516		26,692		24,865		23,083		43,591
Less:
Stock-based compensation expense		(8)		(15)		(18)		(50)		(100)		(220)		(785)		(1,166)		(1,271)		(2,462)		(3,339)		(3,543)		(3,533)		(4,664)		(3,647)		(4,009)		(4,155)		(3,839)		(4,792)		(4,402)		(4,425)		(4,824)		(4,381)		(4,153)		(3,988)		(3,959)		(3,494)		(3,455)
Acquisition-related costs		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		(19,719)
Impact of restructuring		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		(1,594)		-		-		-		-		-		-		-		(129)				-		-
Litigation (expense)/credit - Jawbone		-		-		-		-		-		-		-		-		-		-		-		-		-		(11,558)		(6,062)		(7,225)		114		(1,533)		(874)		(919)		(765)		-		-		-		-				-		-
Impact of Fitbit Force recall		-		-		-		(2,838)		(2,876)		(1,483)		(2)		972		142		(69)		(20)		4,363		(11)		11		-		(26)		-		-		-		-		-		-		-		-		-				-		-
Intangible assets amortization		-		-		-		-		-		-		-		-		-		(82)		(82)		(82)		(82)		(82)		(61)		(56)		(58)		(58)		(62)		(71)		(71)		(71)		(71)		(73)		(71)		(72)		(71)		(71)
General and administrative (Non-GAAP)		1,330		2,139		2,835		5,252		5,641		5,740		7,062		9,453		11,852		12,035		17,257		30,204		32,076		20,969		23,563		29,290		25,053		25,949		34,962		25,727		30,827		25,316		20,360		21,290		22,504		20,834		19,518		20,346
Operating expenses:
Research and development		5,346		6,507		7,766		8,254		9,088		11,809		14,945		18,325		22,426		30,492		42,890		54,227		72,248		79,909		82,972		85,062		87,758		80,543		84,170		90,541		89,336		87,047		79,840		75,946		77,039		70,919		65,693		86,703
Sales and marketing		4,217		5,433		6,159		11,038		11,273		13,311		17,539		69,882		43,867		69,690		65,115		154,069		107,051		118,138		79,872		186,194		91,174		100,732		77,536		145,600		72,052		100,845		66,676		104,518		68,616		83,060		71,296		106,828
General and administrative		1,338		2,154		2,853		8,140		8,617		7,443		7,849		9,647		12,981		14,648		20,698		29,466		35,702		37,262		33,333		40,606		30,746		31,379		40,690		31,119		36,088		30,211		24,812		25,516		26,692		24,865		23,083		43,591
Change in contingent consideration		-		-		-		-		-		-		-		-		-		(7,704)		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-				-		-
Total operating expenses (GAAP)		10,901		14,094		16,778		27,432		28,978		32,563		40,333		97,854		79,274		107,126		128,703		237,762		215,001		235,309		196,177		311,862		209,678		212,654		202,396		267,260		197,476		218,103		171,328		205,980		172,347		178,844		160,072		237,122
Less:
Stock-based compensation expense		(62)		(112)		(157)		(252)		(255)		(532)		(2,124)		(3,003)		(4,457)		(6,922)		(11,683)		(13,223)		(16,461)		(19,316)		(18,991)		(19,867)		(21,747)		(20,474)		(21,418)		(21,902)		(22,543)		(23,825)		(22,116)		(21,213)		(19,114)		(19,026)		(16,638)		(16,558)
Acquisition-related costs		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		(42,352)
Impact of restructuring		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		(6,338)		-		-		-		-		-		-		-		(2,268)		-		-		-
Litigation expense - Jawbone		-		-		-		-		-		-		-		-		-		-		-		-		-		(11,558)		(6,062)		(7,225)		114		(1,533)		(874)		(919)		(765)		-		-		-		-		-		-		-
Impact of Fitbit Force recall		-		-		-		(2,838)		(2,876)		(1,483)		(2)		972		142		(69)		(20)		4,363		(11)		11		-		(26)		-		-		-		-		-		-		-		-		-		-		-		-
Intangible assets amortization		-		-		-		-		-		-		-		-		-		(82)		(82)		(82)		(82)		(82)		(61)		(56)		(58)		(58)		(62)		(71)		(232)		(541)		244		(208)		(206)		(208)		(206)		(206)
Change in contingent consideration		-		-		-		-		-		-		-		-		-		7,704		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Total operating expenses (Non-GAAP)		10,839		13,982		16,621		24,342		25,847		30,548		38,207		95,823		74,959		107,757		116,918		228,820		198,447		204,364		171,063		284,688		181,649		190,589		180,042		244,368		173,936		193,737		149,456		184,559		150,759		159,610		143,228		178,006
Operating income (loss) (GAAP)		4,088		7,128		24,477		(44,647)		15,791		25,826		43,272		73,040		89,935		80,416		67,310		110,537		18,754		9,660		44,481		(185,360)		(91,379)		(63,409)		(27,636)		(18,663)		(83,353)		(99,088)		(17,814)		10,947		(82,894)		(70,630)		(52,120)		(115,069)

				Q1 2013		Q2 2013		Q3 2013		Q4 2013		Q1 2014		Q2 2014		Q3 2014		Q4 2014		Q1 2015		Q2 2015		Q3 2015		Q4 2015		Q1 2016		Q2 2016		Q3 2016		Q4 2016		Q1 2017		Q2 2017		Q3 2017		Q4 2017		Q1 2018		Q2 2018		Q3 2018		Q4 2018		Q1 2019		Q2 2019		Q3 2019		Q4 2019
Plus:
Stock-based compensation expense		64		116		165		275		314		661		2,470		3,359		4,903		7,747		13,034		15,340		17,770		20,400		20,005		21,257		21,765		21,966		22,797		24,325		23,641		25,857		24,115		23,396		20,544		20,547		18,084		18,564
Acquisition-related costs		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		47,990
Impact of restructuring		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		6,375		-		-		-		-		-		-		-		2,458		-		-		-
Litigation expense/(credit) - Jawbone																												11,558		6,062		7,225		(114)		1,533		874		919		765		-		-		-		-		-		-		-
Impact of Fitbit Force recall		-		-		-		84,650		25,039		1,483		(1,483)		(2,199)		(2,182)		69		20		(8,078)		11		(11)		-		26		-		-		-		-		-		-		-		-		-		-		-		-
Intangible assets amortization		-		-		-		-		-		-		-		-		-		549		514		533		533		533		512		509		1,377		1,377		1,381		1,587		1,748		2,057		2,060		2,061		2,060		2,061		1,979		2,598
Change in contingent consideration			-		-		-		-		-		-		-		-		-		(7,704)		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Operating inc	ome (loss) (Non-GAAP)		4,152		7,244		24,642		40,278		41,144		27,970		44,259		74,200		92,656		81,077		80,878		118,332		37,068		42,140		71,060		(156,343)		(61,976)		(38,533)		(2,584)		8,168		(57,199)		(71,174)		8,361		36,404		(57,832)		(48,022)		(32,057)		(45,917)
Interest and other income (expense), net			(405)		(923)		(1,495)		(1,908)		(1,628)		(4,139)		(3,496)		(8,893)		(13,544)		(45,687)		(960)		(58)		2,150		376		(67)		711		1,628		496		460		3,858		1,867		4,435		(3,069)		1,933		4,739		3,083		1,896		1,930
Income (loss) before income taxes			3,683		6,205		22,982		(46,555)		14,163		21,687		39,776		64,147		76,391		34,729		66,350		110,479		20,904		10,036		44,414		(184,649)		(89,751)		(62,913)		(27,176)		(14,805)		(81,486)		(94,653)		(20,883)		12,880		(78,155)		(67,547)		(50,224)		(113,139)
Income tax expense (benefit)			1,974		3,325		12,297		20,341		5,291		6,934		(29,136)		24,907		28,394		17,048		20,516		46,314		9,869		3,695		18,294		(38,376)		(29,671)		(4,673)		86,227		30,665		(609)		23,615		(18,827)		(2,492)		1,310		971		1,669		7,696
Net income (loss) (GAAP)		$	1,709	$	2,880	$	10,685	$	(66,896)	$	8,872	$	14,753	$	68,912	$	39,240	$	47,997	$	17,681	$	45,834	$	64,165	$	11,035	$	6,341	$	26,120	$	(146,273)	$	(60,080)	$	(58,240)	$	(113,403)	$	(45,470)	$	(80,877)	$	(118,268)	$	(2,056)	$	15,372	$	(79,465)	$	(68,518)	$	(51,893)	$	(120,835)
Plus:
Stock-based compensation expense	$	64	$	116	$	165	$	275	$	314	$	661	$	2,470	$	3,359	$	4,903	$	7,747	$	13,034	$	15,340	$	17,770	$	20,400	$	20,005	$	21,257	$	21,765	$	21,966	$	22,797	$	24,325	$	23,641	$	25,857	$	24,115	$	23,396	$	20,544	$	20,547	$	18,084	$	18,564
Acquisition-related costs		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		47,990
Impact of restructuring		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		6,375		-		-		-		-		-		-		-		2,458		-		-		-
Litigation expense/(credit) - Jawbone		-		-		-		-		-		-		-		-		-		-		-		-		-		11,558		6,062		7,225		(114)		1,533		874		919		765		-		-		-		-		-		-		-
Impact of Fitbit Force recall		-		-		-		84,650		25,039		1,483		(1,483)		(2,199)		(2,182)		69		20		(8,078)		11		(11)		-		26		-		-		-		-		-		-		-		-				-		-		-
Revaluation of redeemable convertible preferred																																																				-		-		-
stock warrant liability		345		496		1,224		1,305		1,353		3,842		1,626		6,451		10,335		46,320		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Impairment of equity investment		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		6,000		-		-		-		-		-
Intangible assets amortization		-		-		-		-		-		-		-		-		-		549		514		533		533		533		512		509		1,377		1,377		1,381		1,587		1,748		2,057		2,060		2,061		2,060		2,061		1,979		2,598
Change in contingent consideration		-		-		-		-		-		-		-		-		-		(7,704)		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Income tax effect of non-GAAP adjustments			(164)		(245)		(556)		(34,492)		(10,682)		(2,394)		(44,437)		(3,044)		(4,857)		(13,349)		(183)		15,423		(4,829)		(9,297)		(6,955)		(8,445)		(3,722)		14,056		85,574		13,979		13,767		36,121		(20,077)		(4,481)		16,335		10,139		5,141		20,193
Net income (loss) (Non-GAAP)		$	1,954	$	3,247	$	11,518	$	(15,158)	$	24,896	$	18,345	$	27,088	$	43,807	$	56,196	$	51,313	$	59,219	$	87,383	$	24,520	$	29,524	$	45,744	$	(125,701)	$	(34,399)	$	(19,308)	$	(2,777)	$	(4,660)	$	(40,956)	$	(54,233)	$	10,042	$	36,348	$	(38,068)	$	(35,771)	$	(26,689)	$	(31,490)
Less: undistributed earnings to participating securities and noncumulative dividends to preferred stockholders					$	(7,183)	$	(11,750)	$	(53,763)	$	(30,701)	$	(37,374)	$	(12,456)	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Net income (loss) attributable to common stockholders - basic										1,689		3,003		15,149		8,539		10,623		5,225		45,834		64,165		11,035		6,341		26,120		(146,273)		(60,080)		(58,240)		(113,403)		(45,470)		(80,877)		(118,268)		(2,056)		15,372		(79,465)		(68,518)		(51,893)		(120,835)
Add: adjustments for undistributed earnings to participating securities										570		1,058		5,387		3,326		4,992		1,862		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Net income (loss) attributable to common stockholders - diluted									$	2,259	$	4,061	$	20,536	$	11,865	$	15,615	$	7,087	$	45,834	$	64,165	$	11,035	$	6,341	$	26,120	$	(146,273)	$	(60,080)	$	(58,240)	$	(113,403)	$	(45,470)	$	(80,877)	$	(118,268)	$	(2,056)	$	15,372	$	(79,465)	$	(68,518)	$	(51,893)	$	(120,835)
Net income (loss) per share attributable to common stockholders:
Basic									$	0.04	$	0.07	$	0.38	$	0.21	$	0.26	$	0.09	$	0.22	$	0.30	$	0.05	$	0.03	$	0.12	$	(0.65)	$	(0.27)	$	(0.25)	$	(0.48)	$	(0.19)	$	(0.34)	$	(0.49)	$	(0.01)	$	0.06	$	(0.31)	$	(0.27)	$	(0.20)	$	(0.46)
Diluted (GAAP)									$	0.04	$	0.07	$	0.34	$	0.19	$	0.22	$	0.07	$	0.19	$	0.26	$	0.05	$	0.03	$	0.11	$	(0.65)	$	(0.27)	$	(0.25)	$	(0.48)	$	(0.19)	$	(0.34)	$	(0.49)	$	(0.01)	$	0.06	$	(0.31)	$	(0.27)	$	(0.20)	$	(0.46)
Shares used to compute net income (loss) per share attributable to common stockholders:
Basic										40,155		40,193		40,376		40,676		41,201		58,548		206,657		210,438		216,043		218,850		222,412		224,412		226,511		230,322		234,242		237,421		239,431		242,898		245,838		249,973		253,124		256,160		258,753		261,693
Diluted (GAAP)										59,478		60,487		61,003		63,742		70,289		95,190		243,660		245,009		242,009		242,328		243,687		224,412		226,511		230,322		234,242		237,421		239,431		242,898		245,838		260,399		253,124		256,160		258,753		261,693
Plus:
Diluted effect of redeemable convertible preferred common stock conversion										139,504		139,504		139,708		139,851		139,851		126,020		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Public offering shares										-		-		-		-		-		20,173		-		1,565		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Other dilutive equity awards										1,701		1,886		1,802		1,756		1,839		1,766		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Diluted shares (Non-GAAP)										200,683		201,877		202,513		205,349		211,979		243,149		243,660		246,574		242,009		242,328		243,687		224,412		226,511		230,322		234,242		237,421		239,431		242,898		260,347		260,399		253,124		256,160		258,753		261,693
Diluted net income (loss) per share (Non-GAAP)									$	0.12	$	0.09	$	0.13	$	0.21	$	0.27	$	0.21	$	0.24	$	0.35	$	0.10	$	0.12	$	0.19	$	(0.56)	$	(0.15)	$	(0.08)	$	(0.01)	$	(0.02)	$	(0.17)	$	(0.22)	$	0.04	$	0.14	$	(0.15)	$	(0.14)	$	(0.10)	$	(0.12)
Adjusted EBITDA
Net income (loss) (GAAP)	$	1,709	$	2,880	$	10,685	$	(66,896)	$	8,872	$	14,753	$	68,912	$	39,240	$	47,997	$	17,681	$	45,834	$	64,165	$	11,035	$	6,341	$	26,120	$	(146,273)	$	(60,079)	$	(58,240)	$	(113,403)	$	(45,470)	$	(80,877)	$	(118,268)	$	(2,056)	$	15,372	$	(79,465)	$	(68,518)	$	(51,893)	$	(120,835)
Impact of Fitbit Force recall		-		-		-		84,650		25,039		1,483		(1,483)		(2,199)		(2,182)		69		20		(8,078)		11		(11)		-		26		-		-		-		-		-		-		-		-		-		-
Stock-based compensation expense		64		116		165		275		314		661		2,470		3,359		4,903		7,747		13,034		15,340		17,770		20,400		20,005		21,257		21,765		21,966		22,797		24,325		23,641		25,857		24,115		23,396		20,544		20,547		18,084		18,564
Acquisition-related costs		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		47,990
Impact of restructuring		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		6,375		-		-		-		-		-		-		-		2,458		-				-
Litigation expense/(credit) - Jawbone		-		-		-		-		-		-		-		-		-		-		-		-		-		11,558		6,062		7,225		(114)		1,533		874		919		765		-		-		-		-		-		-		-
Revaluation of redeemable convertible preferred																																																								-
stock warrant liability		345		496		1,224		1,305		1,353		3,842		1,626		6,451		10,335		46,320		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-				-
Impairment of equity investment		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		6,000		-		-		-				-
Depreciation and amortization		452		680		700		1,180		750		963		1,251		3,167		3,469		4,705		5,367		7,566		7,008		7,178		11,275		12,672		10,517		11,435		10,520		13,221		12,204		15,173		13,877		15,561		15,433		18,792		15,089		13,522
Change in contingent consideration		-		-		-		-		-		-		-		-		-		(7,704)		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Interest (income) expense, net		196		268		274		344		409		452		680		681		467		379		216		(43)		(582)		(839)		(970)		(765)		(1,096)		(193)		(1,162)		(1,197)		(1,350)		(2,177)		(2,072)		(2,209)		(3,466)		(2,622)		(2,388)		(1,815)
Income tax expense (benefit)			1,974		3,325		12,297		20,341		5,291		6,934		(29,136)		24,907		28,394		17,048		20,516		46,314		9,869		3,695		18,294		(38,376)		(29,671)		(4,673)		86,227		30,665		(609)		23,615		(18,827)		(2,492)		1,310		971		1,669		7,696
Adjusted EBITDA	$	4,740	$	7,765	$	25,345	$	41,199	$	42,028	$	29,088	$	44,320	$	75,606	$	93,383	$	86,245	$	84,987	$	125,264	$	45,111	$	48,322	$	80,786	$	(144,234)	$	(52,303)	$	(28,172)	$	5,853	$	22,463	$	(46,226)	$	(55,800)	$	21,037	$	49,628	$	(43,186)	$	(30,830)	$	(19,439)	$	(34,878)
Devices Sold		521		745		1,291		1,919		1,575		1,720		2,332		5,277		3,866		4,458		4,773		8,258		4,842		5,673		5,283		6,497		2,956		3,373		3,624		5,391		2,150		2,684		3,539		5,566		2,930		3,529		3,540		5,989

Fitbit, Inc.

Condensed Consolidated Statements of Cash Flows - Fiscal Quarters

(in thousands)		Q1 2013		Q2 2013		Q3 2013		Q4 2013		Q1 2014		Q2 2014		Q3 2014		Q4 2014		Q1 2015		Q2 2015		Q3 2015		Q4 2015		Q1 2016		Q2 2016		Q3 2016		Q4 2016		Q1 2017		Q2 2017		Q3 2017		Q4 2017		Q1 2018		Q2 2018		Q3 2018		Q4 2018		Q1 2019		Q2 2019		Q3 2019		Q4 2019
Cash Flows from Operating activities:
Net income (loss)	$	1,709	$	2,880	$	10,685	$	(66,896)	$	8,872	$	14,753	$	68,912	$	39,240	$	47,997	$	17,681	$	45,834	$	64,165	$	11,035	$	6,341	$	26,120	$	(146,273)	$	(60,079)	$	(58,240)	$	(113,403)	$	(45,470)	$	(80,877)	$	(118,268)	$	(2,056)	$	15,372	$	(79,465)	$	(68,518)	$	(51,893)	$	(120,835)
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities
Provision for (recovery of) doubtful accounts		-		-		-		651		(63)		12		66		849		73		(101)		(5)		1,148		413		(232)		(40)		198		1		183		7,622		87		(109)		105		41		19		32		16		(19)		268
Provision for inventory obsolescence		201		272		422		204		757		473		(707)		2,441		1,761		2,776		-		523		231		434		349		3,979		3,997		4,412		4,986		1,438		6,337		1,677		1,005		2,809		1,478		2,644		1,041		848
Provision for inventory obsolescence related to Fitbit Force recall		-		-		-		10,251		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Depreciation		452		680		700		1,180		750		963		1,250		3,168		3,363		4,156		4,853		7,033		6,475		6,646		10,763		12,162		9,140		10,059		9,139		11,633		10,456		13,116		11,816		13,501		13,373		16,733		13,109		10,924
Accelerated depreciation of property and equipment		-		-		-		1,712		-		-		-		1,004		-		-		-		1,206		484		165		113		19,043		-						-		-		-		-		-		-		-		-		-
Amortization of intangible assets		-		-		-		-		-		-		-		-		106		549		514		533		533		533		512		509		1,377		1,376		1,381		1,588		1,748		2,057		2,061		2,060		2,060		2,061		1,979		2,599
Non-cash lease expense																																																		7,713		3,902		6,346		1,209
Write-off of property and equipment		-		-		-		-		-		-				-		-				-		-		-		-		-		-		-		5,250		-		-		7,259		226		28		218		-		170		(1)		37
Revaluation of redeemable convertible preferred stock warrants liability		345		496		1,224		1,305		1,353		3,841		1,627		6,451		10,335		46,320		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Amortization of issuance costs and discount on debt		17		22		21		22		160		56		398		181		161		161		162		477		117		116		117		116		116		686		75		74		74		74		162		475		-		-		-		-
Stock-based compensation		64		116		165		275		314		661		2,470		3,359		4,903		7,747		13,034		15,340		17,770		20,400		20,005		21,257		22,493		21,966		22,797		24,325		23,641		25,857		24,115		23,396		20,544		20,547		18,084		18,564
Change in contingent consideration		-		-		-		-		-		-		-		-		-		(7,704)		-		-		-		-		-		-		-		-		-		-		-		-		-		-				-		-		-
Deferred income taxes		-		-		-		-		-		-		(26,693)		(15,308)		(3,875)		(16,236)		(12,177)		(10,250)		(4,581)		(31,871)		8,658		(70,940)		(5,005)		21,142		116,678		41,091		(1,799)		500		(391)		(858)		(20)		154		484		(234)
Impairment of equity investment		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		6,000		-		-		-		-		-
Excess tax benefit from stock-based compensation (1)		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Other		-		-		-		-		-		-		-		-		-		-		(560)		297		17		(1,131)		300		391		(300)		743		(19)		(208)		(240)		(323)		(440)		(392)		(50)		212		(212)		565
Changes in operating assets and liabilities
Accounts receivable		10,663		(13,164)		(17,381)		(35,748)		31,004		(1,456)		(26,872)		(161,464)		77,371		(90,205)		7,334		(225,600)		129,218		(37,681)		(83,781)		(16,457)		282,917		(21,752)		(52,266)		(145,115)		191,982		(27,787)		(83,968)		(88,263)		163,592		(8,031)		(86,944)		(89,930)
Inventories		(5,239)		(2,008)		(7,436)		(32,693)		2,633		(1,657)		(5,699)		(56,872)		(24,198)		(52,136)		(88,819)		97,045		(34,149)		20,798		(37,532)		(11,092)		27,193		54,293		(2,038)		12,681		(27,307)		3,090		(55,847)		67,204		(50,958)		9,775		(84,317)		107,029
Prepaid expenses and other assets		468		(524)		(2,538)		369		(2,457)		(729)		(235)		(6,258)		(8,220)		5,725		(2,169)		(24,551)		(16,547)		462		(22,703)		912		(976)		(49,348)		(75,180)		12,393		39,610		(1,986)		85,732		2,558		12,594		1,413		(2,135)		3,269
Fitbit Force recall reserve		-		-		-		72,687		1,300		(27,164)		(26,045)		(8,553)		(7,371)		(2,210)		(1,236)		(6,537)		(783)		(2,191)		(654)		(241)		(295)		(205)		(168)		(121)		(132)		(159)		(104)		(50)		46		90		106		(243)
Accounts payable		(4,493)		903		7,104		47,367		(39,616)		12,510		10,642		140,225		(59,478)		53,918		125,328		(63,009)		(16,317)		(23,108)		26,299		58,780		(176,619)		(40,340)		94,799		36,045		(84,155)		19,971		80,541		18,850		(81,656)		(18,861)		112,343		(64,386)
Accrued liabilities and other liabilities		(2,369)		4,499		6,653		18,260		(6,340)		(1,052)		9,576		45,549		(4,826)		13,656		21,827		108,091		38,729		15,271		(10,715)		170,076		(52,173)		8,210		(4,238)		104,373		(66,790)		(3,886)		6,220		52,478		(69,962)		(28,138)		37,095		154,267
Lease liabilities		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		(4,972)		(8,605)		(7,398)		(1,914)
Deferred revenue		(3,410)		694		662		2,913		150		1,764		684		805		7,467		4,322		5,731		17,371		6,481		(4,508)		(1,419)		4,902		(3,000)		(2,477)		(4,369)		2,374		(6,010)		(3,613)		(26)		4,027		(2,259)		(1,216)		889		6,592
Income taxes payable		1,522		2,668		6,092		7,513		(8,300)		6,834		(6,111)		20,381		(12,909)		(16,927)		1,677		32,495		4,317		10,540		4,899		25,680		351		(1,867)		(306)		(1,666)		(173)		21,974		(16,148)		(5,078)		257		(771)		407		(349)
Net cash provided by (used in) operating activities		(70)		(2,466)		6,373		29,372		(9,483)		9,809		3,263		15,198		32,660		(28,508)		121,328		15,777		143,443		(19,016)		(58,709)		73,002		49,138		(45,909)		5,490		55,522		13,515		(67,375)		58,741		108,326		(67,653)		(76,423)		(41,036)		28,280
Cash Flows from Investing activities:
Change in restricted cash		-		-		-		(2,310)		2,310		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Purchase of property and equipment		(775)		(2,024)		(2,437)		(2,288)		(2,909)		(3,789)		(11,187)		(8,610)		(5,009)		(6,736)		(6,003)		(12,818)		(16,676)		(20,069)		(30,053)		(11,842)		(28,157)		(11,662)		(18,382)		(30,959)		(12,616)		(15,908)		(11,650)		(12,706)		(6,096)		(4,731)		(15,450)		(10,254)
Purchase of marketable securities		-		-		-		-		-		-		-		-		-		-		(124,713)		(106,222)		(62,576)		(330,162)		(160,014)		(85,303)		(129,661)		(188,017)		(176,862)		(103,393)		(123,479)		(65,611)		(60,174)		(104,684)		(111,615)		(108,880)		(67,474)		(59,610)
Sales of marketable securities		-		-		-		-		-		-		-		-		-		-		12,070		45,941		-		38,814		6,197		1,500		4,256		9,550		6,000		22,600		8,945		-		-		1,038		-		2,016		-		7,108
Maturities of marketable securities		-		-		-		-		-		-		-		-		-		-		-		44,500		121,598		18,664		109,007		66,505		178,028		173,116		149,432		121,949		171,966		93,712		91,998		75,918		128,309		111,120		82,703		83,464
Acquisitions, net of cash acquired		-		-		-		-		-		-		-		-		(11,037)		-		-		-		-		(5,600)		-		(32,656)		-		-		(556)		-		(17,003)		-		-		(2,250)		-		-		(2,625)		(2,224)
Equity investment																																								(6,000)		-		-		-		-		-		-		-		-
Net cash provided by (used in) investing activities		(775)		(2,024)		(2,437)		(4,598)		(599)		(3,789)		(11,187)		(8,610)		(16,046)		(6,736)		(118,646)		(28,599)		42,346		(298,353)		(74,863)		(61,796)		24,466		(17,013)		(40,368)		4,197		27,813		12,193		20,174		(42,684)		10,598		(475)		(2,846)		18,484
Cash Flows from Financing activities:
Proceeds from initial public offering, net of underwriters' fees		-		-		-		-		-		-		-		-		-		420,885		-		84,390		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Proceeds from issuance of debt and revolving credit facility, net debt discount		2,830		-		-		-		30,000		-		8,000		125,000		160,000		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Repayment of debt		(59)		(60)		(237)		(240)		(2,347)		(749)		(38,250)		-		(134,503)		(160,000)		-		-		-		-		-		-		-		-		-		-		(747)		-		-		-		-		-		-		(550)
Payment of issuance costs		-		-		-		(45)		(604)		-		(1,971)		-		-		-		-		(748)		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Payments of offering costs		-		-		-		-		-		-		-		-		(1)		(2,522)		(2,249)		(317)		(1,236)		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Proceeds from the issuance of redeemable convertible preferred																																				-		-		-		-		-		-		-		-		-		-		-
stock, net of issuance costs		-		25,823		16,988		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Financing lease		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		(597)		(340)		(1,302)		(464)
Proceeds from issuance of common stock		45		143		9		8		3		9		20		65		70		372		498		3,078		2,374		12,093		3,849		7,653		2,581		8,826		2,486		5,118		992		9,746		903		9,829		931		5,881		232		5,974
Taxes paid related to net share settlement of restricted stock units		-		-		-		-		-		-		-		-		-		-		-		-		(574)		(533)		(2,121)		(1,711)		(3,127)		(2,107)		(5,570)		(3,572)		(5,179)		(4,808)		(5,697)		(3,752)		(6,422)		(4,227)		(2,846)		(4,676)
Excess tax benefit from stock-based compensation (1)		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Proceeds from exercise of redeemable convertible preferred stock warrants		-		-		-		-		-		-		75		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Net cash provided by (used in) financing activities		2,816		25,906		16,760		(277)		27,052		(740)		(32,126)		125,065		25,566		258,735		(1,751)		86,403		564		11,560		1,728		5,942		(546)		6,719		(3,084)		1,546		(4,934)		4,938		(4,794)		6,077		(6,088)		1,314		(3,916)		284
Net increase (decrease) in cash and cash equivalents		1,971		21,416		20,696		24,497		16,970		5,280		(40,050)		131,653		42,180		223,491		931		73,581		186,353		(305,809)		(131,844)		17,148		73,058		(56,203)		(37,962)		61,265		36,394		(50,244)		74,121		71,719		(63,143)		(75,584)		(47,798)		47,048
Effect of exchange rate changes on cash		-		-		-		-		5		7		17		16		43		(64)		73		(15)		(137)		(111)		(78)		(48)		(99)		630		(63)		20		-		-		-		-		-		-
Cash and cash equivalents at beginning of period		13,148		15,119		36,535		57,231		81,728		98,703		103,990		63,957		195,626		237,849		461,276		462,280		535,846		722,062		416,142		284,220		301,320		374,279		318,706		280,681		341,966		378,360		328,116		402,237		473,956		410,813		335,229		287,431
Cash and cash equivalents at end of period	$	15,119	$	36,535	$	57,231	$	81,728	$	98,703	$	103,990	$	63,957	$	195,626	$	237,849	$	461,276	$	462,280	$	535,846	$	722,062	$	416,142	$	284,220	$	301,320	$	374,279	$	318,706	$	280,681	$	341,966	$	378,360	$	328,116	$	402,237	$	473,956	$	410,813	$	335,229	$	287,431	$	334,479
Free cash flow
Net cash provided by (used in) operating activities (GAAP) (1)	$	(70)	$	(2,466)	$	6,373	$	29,372	$	(9,483)	$	9,809	$	3,263	$	15,198	$	32,660	$	(28,508)	$	121,328	$	15,777	$	143,443	$	(19,016)	$	(58,709)	$	73,002	$	49,138	$	(45,909)	$	5,490	$	55,522	$	13,515	$	(67,375)	$	58,741	$	108,326	$	(67,653)	$	(76,423)	$	(41,036)	$	28,280
Purchase of property and equipment		(775)		(2,024)		(2,437)		(2,288)		(2,909)		(3,789)		(11,187)		(8,610)		(5,009)		(6,736)		(6,003)		(12,818)		(16,676)		(20,069)		(30,053)		(11,842)		(28,157)		(11,662)		(18,382)		(30,959)		(12,616)		(15,908)		(11,650)		(12,706)		(6,096)		(4,731)		(15,450)		(10,254)
Free cash flow (Non-GAAP)	$	(845)	$	(4,490)	$	3,936	$	27,084	$	(12,392)	$	6,020	$	(7,924)	$	6,588	$	27,651	$	(35,244)	$	115,325	$	2,959	$	126,767	$	(39,085)	$	(88,762)	$	61,160	$	20,981	$	(57,571)	$	(12,892)	$	24,563	$	899	$	(83,283)	$	47,091	$	95,620	$	(73,749)	$	(81,154)	$	(56,486)	$	18,026
Net cash provided by (used in) investing activities (GAAP)	$	(775)	$	(2,024)	$	(2,437)	$	(4,598)	$	(599)	$	(3,789)	$	(11,187)	$	(8,610)	$	(16,046)	$	(6,736)	$	(118,646)	$	(28,599)	$	42,346	$	(298,353)	$	(74,863)	$	(61,796)	$	24,466	$	(17,013)	$	(40,368)	$	4,197	$	27,813	$	12,193	$	20,174	$	(42,684)	$	10,598	$	(475)	$	(2,846)	$	18,484
Net cash provided by (used in) financing activities (GAAP) (1)	$	2,816	$	25,906	$	16,760	$	(277)	$	27,052	$	(740)	$	(32,126)	$	125,065	$	25,566	$	258,735	$	(1,751)	$	86,403	$	564	$	11,560	$	1,728	$	5,942	$	(546)	$	6,719	$	(3,084)	$	1,546	$	(4,934)	$	4,938	$	(4,794)	$	6,077	$	(6,088)	$	1,314	$	(3,916)	$	284

(1) - The Company's adoption of ASU 2016-09 on January 1, 2017 resulted in excess tax benefits for share-based payments recorded as a reduction of income tax expense and reflected within operating cash flows, rather than recorded within equity and reflected within financing cash flows. The Company elected to adopt this new standard retrospectively, which impacted the presentation for all periods prior to the adoption date.