“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
“Our results at the halfway point reflect progress in a number of areas,” said
Second Quarter Financial Highlights:
- Total revenue was
$75.4 million , up 11% compared to the second quarter of 2022. - Total annual revenue run-rate (ARR) as of
June 30, 2023 was$331.1 million , up 12% compared toJune 30, 2022 . - Subscription revenue was
$56.1 million , up 10% compared to the second quarter of 2022. - ARR from accounts with at least one enterprise plan (“Enterprise Accounts”) was
$236.4 million as ofJune 30, 2023 , up 14% fromJune 30, 2022 . - ARR from Enterprise Accounts as a percent of total ARR was 71% as of
June 30, 2023 , compared to 70% as ofJune 30, 2022 . - GAAP gross margin was 75%, compared to 75% in the second quarter of 2022. Non-GAAP gross margin was 77%, compared to 77% in the second quarter of 2022.
Other Key Business Metrics
- Number of enterprise accounts was 5,929, up 9% compared to the second quarter of 2022.
- Average revenue per account (ARPA) of enterprise accounts was
$39,870 , up 5% compared to the second quarter of 2022. - Revenue in the
Americas grew by 9% compared to the second quarter of 2022. - Revenue in EMEA grew by 27% and revenue in APAC grew by 3% compared to the second quarter of 2022.
Operating Income/(Loss)
- GAAP operating loss was
($20.9) million , compared to($39.1) million in the second quarter of 2022. - Non-GAAP operating loss was
($3.4) million , compared to($13.7) million in the second quarter of 2022.
Net Income/(Loss) and Earnings Per Share
- GAAP net loss was
($19.1) million , compared to($39.6) million in the second quarter of 2022. - Non-GAAP net loss was
($1.5) million or (2%) of total revenue, compared to($14.1) million or (21%) of total revenue in the second quarter of 2022. - GAAP net loss per share was (
$0.25 ) based on 74.8 million weighted-average shares of common stock outstanding, compared to ($0.54 ) based on 73.1 million weighted-average shares of common stock outstanding in the second quarter of 2022. - Non-GAAP net loss per share was (
$0.02 ) based on 74.8 million weighted-average shares of common stock outstanding, compared to ($0.19 ) based on 73.1 million weighted-average shares of common stock outstanding in the second quarter of 2022.
Adjusted EBITDA
- Adjusted EBITDA was
($2.5) million , compared to($12.9) million in the second quarter of 2022. Note: In comparison to prior year, results also include the removal of Other Income and Expense from Adjusted EBITDA, which was($0.3) million for the three months endedJune 30, 2022 .
Cash
- Cash, cash equivalents, restricted cash, and marketable securities totaled
$298.5 million as ofJune 30, 2023 . - For the six months ended
June 30, 2023 , net cash used in operating activities was ($6.1 million ), compared to($35.9) million for the same period in 2022. We reported free cash flow of($8.2) million . - For the three months ended
June 30, 2023 , operating cash flow was$14.7 million , compared to($13.9) million for the same period in 2022. We reported free cash flow of$13.7 million .
Business Highlights:
- Corporate Highlights:
- Product Highlights:
In July,
- Merchant Highlights:
Barbecues Galore, an Australian merchant selling grills, grilling accessories and outdoor furniture, became the first merchant transacting with B2B Edition Multi-Storefront, and they went live in just 12 weeks. Square Enix, the company behind some of the world’s most popular gaming franchises including Final Fantasy,
- Partner Highlights:
In May, the company announced a partnership with Oracle NetSuite, making available a
Q3 and 2023 Financial Outlook:
For the third quarter of 2023, the Company currently expects:
- Total revenue between
$76.3 million to$79.3 million , implying a year-over-year growth rate of 5% to 10%. - Non-GAAP operating loss is expected to be between
$1.0 million to$5.0 million .
For the full year 2023, the Company currently expects:
- Total revenue between
$304.0 million and$310.0 million , translating into a year-over-year growth rate of 9% and 11%. - Non-GAAP operating loss between
$10.2 million and$15.2 million .
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
Following the completion of the call through
About
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
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
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 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
We track the total number of accounts with annual contract value (“ACV”) greater than
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
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.
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Consolidated Balance Sheet
(in thousands)
2023 | 2022 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 74,517 | $ | 91,573 | ||||
Restricted cash | 1,114 | 1,457 | ||||||
Marketable securities | 222,890 | 211,941 | ||||||
Accounts receivable, net | 52,151 | 51,899 | ||||||
Prepaid expenses and other assets | 13,455 | 11,206 | ||||||
Deferred commissions | 6,995 | 6,171 | ||||||
Total current assets | 371,122 | 374,247 | ||||||
Property and equipment, net | 10,362 | 9,083 | ||||||
Operating lease, right-of-use-assets | 5,042 | 5,887 | ||||||
Prepaid expenses and other assets, net of current portion | 728 | 470 | ||||||
Deferred commissions, net of current portion | 6,985 | 7,037 | ||||||
Intangible assets, net | 23,517 | 27,583 | ||||||
49,749 | 49,749 | |||||||
Total assets | $ | 467,505 | $ | 474,056 | ||||
Liabilities and stockholders’ equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 6,485 | $ | 7,013 | ||||
Accrued liabilities | 3,673 | 2,937 | ||||||
Deferred revenue | 28,245 | 17,783 | ||||||
Current portion of long-term debt | 399 | — | ||||||
Current portion of operating lease liabilities | 2,563 | 2,609 | ||||||
Other current liabilities | 50,138 | 48,444 | ||||||
Total current liabilities | 91,503 | 78,786 | ||||||
Deferred revenue, net of current portion | 712 | 1,759 | ||||||
Long-term debt | 339,036 | 337,497 | ||||||
Operating lease liabilities, net of current portion | 8,695 | 10,008 | ||||||
Other long-term liabilities, net of current portion | 639 | 334 | ||||||
Total liabilities | 440,585 | 428,384 | ||||||
Commitments and contingencies (Note 7) | ||||||||
Stockholders’ equity | ||||||||
Preferred stock, | — | — | ||||||
Common stock, | 7 | 7 | ||||||
Additional paid-in capital | 598,657 | 576,851 | ||||||
Accumulated other comprehensive loss | (572 | ) | (1,199 | ) | ||||
Accumulated deficit | (571,172 | ) | (529,987 | ) | ||||
Total stockholders’ equity | 26,920 | 45,672 | ||||||
Total liabilities and stockholders’ equity | $ | 467,505 | $ | 474,056 |
Consolidated Statement of Operations
(in thousands, except per share amounts)
(unaudited)
Three months ended | Six months ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Revenue | $ | 75,443 | $ | 68,203 | $ | 147,200 | $ | 134,253 | ||||||||
Cost of revenue | 18,756 | 16,860 | 36,202 | 33,963 | ||||||||||||
Gross profit | 56,687 | 51,343 | 110,998 | 100,290 | ||||||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing | 35,593 | 36,033 | 69,645 | 69,672 | ||||||||||||
Research and development | 21,403 | 22,394 | 42,248 | 43,339 | ||||||||||||
General and administrative | 14,428 | 17,526 | 30,922 | 33,372 | ||||||||||||
Acquisition related expenses | 4,125 | 12,521 | 8,250 | 25,181 | ||||||||||||
Restructuring charges | — | — | 420 | — | ||||||||||||
Amortization of intangible assets | 2,033 | 2,009 | 4,066 | 4,046 | ||||||||||||
Total operating expenses | 77,582 | 90,483 | 155,551 | 175,610 | ||||||||||||
Loss from operations | (20,895 | ) | (39,140 | ) | (44,553 | ) | (75,320 | ) | ||||||||
Interest income | 2,825 | 577 | 5,251 | 699 | ||||||||||||
Interest expense | (722 | ) | (705 | ) | (1,444 | ) | (1,414 | ) | ||||||||
Other expense | (63 | ) | (297 | ) | (32 | ) | (452 | ) | ||||||||
Loss before provision for income taxes | (18,855 | ) | (39,565 | ) | (40,778 | ) | (76,487 | ) | ||||||||
Provision for income taxes | 210 | 40 | 407 | 155 | ||||||||||||
Net loss | $ | (19,065 | ) | $ | (39,605 | ) | $ | (41,185 | ) | $ | (76,642 | ) | ||||
Basic and diluted net loss per share | $ | (0.25 | ) | $ | (0.54 | ) | $ | (0.55 | ) | $ | (1.05 | ) | ||||
Shares used to compute basic and diluted net loss per share | 74,790 | 73,084 | 74,468 | 72,782 |
Consolidated Statement of Cash Flows
(in thousands)
(unaudited)
Three months ended | Six months ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Cash flows from operating activities | ||||||||||||||||
Net loss | $ | (19,065 | ) | $ | (39,605 | ) | $ | (41,185 | ) | $ | (76,642 | ) | ||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||
Depreciation and amortization | 2,940 | 2,821 | 5,844 | 5,647 | ||||||||||||
Amortization of discount on debt | 494 | 490 | 987 | 978 | ||||||||||||
Stock-based compensation | 11,290 | 10,578 | 21,777 | 19,540 | ||||||||||||
Allowance for credit losses | 433 | 2,086 | 1,508 | 3,399 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable | 6,425 | (6,999 | ) | (1,760 | ) | (9,501 | ) | |||||||||
Prepaid expenses | 751 | 1,816 | (3,484 | ) | 1,010 | |||||||||||
Deferred commissions | (821 | ) | (1,397 | ) | (772 | ) | (2,055 | ) | ||||||||
Accounts payable | (1,023 | ) | (1,642 | ) | (528 | ) | (1,929 | ) | ||||||||
Accrued and other liabilities | 7,027 | 15,550 | 2,105 | 21,252 | ||||||||||||
Deferred revenue | 6,292 | 2,427 | 9,415 | 2,441 | ||||||||||||
Net cash provided by (used) in operating activities | 14,743 | (13,875 | ) | (6,093 | ) | (35,860 | ) | |||||||||
Cash flows from investing activities: | ||||||||||||||||
Cash paid for acquisition | — | (696 | ) | — | (696 | ) | ||||||||||
Purchase of property and equipment | (1,017 | ) | (2,146 | ) | (2,080 | ) | (3,486 | ) | ||||||||
Sales and maturities of marketable securities | 83,643 | 33,600 | 123,072 | 42,600 | ||||||||||||
Purchase of marketable securities | (85,351 | ) | (46,800 | ) | (133,394 | ) | (79,273 | ) | ||||||||
Net cash used in investing activities | (2,725 | ) | (16,042 | ) | (12,402 | ) | (40,855 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from financing obligation | 1,081 | — | 1,081 | — | ||||||||||||
Taxes paid related to net share settlement of equity awards | (811 | ) | — | (2,230 | ) | (3,099 | ) | |||||||||
Proceeds from exercise of stock options | 1,156 | (292 | ) | 2,245 | 2,991 | |||||||||||
Net cash provided by (used in) financing activities | 1,426 | (292 | ) | 1,096 | (108 | ) | ||||||||||
Net change in cash and cash equivalents and restricted cash | 13,444 | (30,209 | ) | (17,399 | ) | (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 | $ | 75,631 | $ | 221,881 | $ | 75,631 | $ | 221,881 | ||||||||
Supplemental cash flow information: | ||||||||||||||||
Cash paid for interest | $ | — | $ | — | $ | 431 | $ | 472 | ||||||||
Cash paid for taxes | $ | 60 | $ | — | $ | 212 | $ | 32 | ||||||||
Noncash investing and financing activities: | ||||||||||||||||
Changes in capital additions, accrued but not paid | $ | 125 | $ | 9 | $ | 190 | $ | 105 | ||||||||
Fair value of shares issued as consideration for acquisition | $ | — | $ | 4,614 | $ | — | $ | 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: | ||||||||||||||||
Cash and cash equivalents | $ | 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 | $ | 75,631 | $ | 221,881 | $ | 75,631 | $ | 221,881 |
Disaggregated Revenue:
(unaudited)
Three months ended | Six months ended | |||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Subscription solutions | $ | 56,135 | $ | 51,285 | $ | 109,943 | $ | 99,272 | ||||||||
Partner and services | 19,308 | 16,918 | 37,257 | 34,981 | ||||||||||||
Total revenue | $ | 75,443 | $ | 68,203 | $ | 147,200 | $ | 134,253 |
Revenue by Geography:
(unaudited)
Three months ended | Six months ended | |||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Revenue: | ||||||||||||||||
$ | 57,546 | $ | 52,760 | $ | 112,355 | $ | 104,260 | |||||||||
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 | $ | 75,443 | $ | 68,203 | $ | 147,200 | $ | 134,253 |
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 | Six months ended | |||||||||||||||
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 | Six months ended | |||||||||||||||
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 | )% |
Reconciliation of net loss to adjusted EBITDA:
(unaudited)
Three months ended | Six months ended | |||||||||||||||
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 taxes | 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 | Six months ended | |||||||||||||||
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 | Six months ended | |||||||||||||||
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 | % |
Reconciliation of research and development expense to Non-GAAP research and development expense:
(unaudited)
Three months ended | Six months ended | |||||||||||||||
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 | Six months ended | |||||||||||||||
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 | Six months ended | |||||||||||||||
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 | ) |
Source:
2023 GlobeNewswire, Inc., source