IronNet : Supplemental Financials Q3 2023

IronNet, Inc. Supplemental Financials (Non-GAAP,as of May 1, 2023)
	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023	Q2 2023	Q3 2023	FY21	FY22	YoY
Income Statement
Revenue	$6,869	$7,944	$7,013	$7,401	$6,377	$6,076	$6,913	$8,178	$6,688	$6,608	$6,988	$29,227	$27,544	-5.8%
Product	$5,392	$6,698	$5,958	$6,654	$6,137	$5,769	$6,132	$7,309	$6,443	$6,214	$6,674	$24,701	$25,347	2.6%
% Cloud Subscription	25.6%	45.0%	37.3%	51.8%	65.4%	55.6%	61.8%	67.8%	80.9%	83.7%	85.2%	40.7%	63.0%	54.7%
Services	$1,477	$1,246	$1,056	$747	$240	$307	$781	$869	$245	$394	$314	$4,526	$2,197	-51.4%
COS	$1,848	$1,213	$2,069	$1,893	$1,939	$1,815	$2,368	$3,261	$2,495	$2,488	$4,289	$7,023	$9,383	33.6%
Product	$1,534	$1,090	$1,271	$1,570	$1,754	$1,668	$2,082	$2,721	$2,330	$2,339	$4,206	$5,465	$8,225	50.5%
Services	$314	$123	$799	$322	$184	$147	$286	$540	$165	$149	$83	$1,558	$1,158	-25.7%
GP$	$5,022	$6,731	$4,944	$5,508	$4,439	$4,260	$4,545	$4,917	$4,193	$4,121	$2,699	$22,205	$18,161	-18.2%
GP%	73.1%	84.7%	70.5%	74.4%	69.6%	70.1%	65.7%	60.1%	62.7%	62.4%	38.6%	76.0%	65.9%	-13.2%
OpEx*	$21,444	$20,918	$17,557	$17,562	$19,126	$21,073	$23,957	$24,002	$24,808	$24,010	$19,224	$77,481	$88,158	13.8%
R&D	$7,416	$6,862	$5,687	$5,789	$6,890	$7,572	$7,204	$8,319	$8,180	$8,222	$6,186	$25,755	$29,985	16.4%
S&M	$8,226	$7,885	$7,155	$7,115	$7,149	$7,702	$7,780	$8,482	$8,772	$8,599	$7,175	$30,382	$31,113	2.4%
G&A	$5,802	$6,171	$4,714	$4,658	$5,087	$5,799	$8,973	$7,201	$7,856	$7,189	$5,863	$21,344	$27,060	26.8%
Deprn, Amort	$395	$299	$241	$227	$224	$221	$214	$433	$624	$595	$579	$1,162	$1,092	-6.0%
Oper Inc*	($16,423)	($14,187)	($12,613)	($12,054)	($14,687)	($16,813)	($19,412)	($19,085)	($20,615)	($19,890)	($16,525)	($55,276)	($69,997)	26.6%
Other Expense	$25	($78)	$178	($143)	($121)	($224)	($724)	($88)	($527)	($476)	$405	($19)	($1,158)
Taxes	($19)	($20)	($19)	($19)	($58)	$37	($34)	($409)	$147	($157)	($1)	($78)	($465)
Net Loss*	($16,417)	($14,285)	($12,454)	($12,216)	($14,867)	($17,000)	($20,170)	($19,582)	($20,995)	($20,523)	($16,121) ($55,373)	($71,620)	29.3%
Weighted Average Shares Outstanding **	62,308	64,787	65,068	66,037	67,182	67,421	87,194	97,600	99,300	101,352	105,033	64,562	79,953

*OpEx excludes transaction costs, stock compensation expenses and depreciation and amortization expenses

• 17.1m shares were added from the Merger completed on August 26, 2021
  GAAP Adjustments

Stock Compensation	$31	$25	($29)	($33)	$17	$10	$129,921	$26,649	$11,442	$7,697	$14,382	($6)	$156,596
R&D							$17,251	$5,663	$2,527	$1,721	$618	$0	$22,914
S&M							$43,464	$8,345	$1,885	$350	$592	$0	$51,809
G&A	$31	$25	($29)	($33)	$17	$10	$69,206	$12,641	$7,030	$5,626	$13,172	($6)	$81,873
Warrants							$11,302	($37)	$0	$0	$0	$0	$11,265
Transaction costs					$615	$156	$1,556	$838	$106	$159	$6	$0	$3,166
Key Metrics
Customer Count	20	22	25	27	44	51	74	88	91	78	70	27	88	225.9%
ARR ($M)	$16.6	$19.5	$21.0	$25.8	$25.6	$24.1	$27.5	$31.8	$30.1	$26.5	$28.2	$25.8	$31.8	23.1%
$wtd ACL (yrs)	3.40	3.20	3.24	2.90	2.80	2.80	2.80	2.70	3.20	3.21	3.00	3.17	2.77	-12.6%
Calc'd Billings ($M)	$10.2	$6.3	$8.1	$18.4	$8.6	$3.5	$7.6	$7.5	$11.7	$2.2	$3.1	$43.0	$27.1	-36.9%
Revenue	$6.9	$7.9	$7.0	$7.4	$6.4	$6.1	$6.9	$8.2	$6.7	$6.6	$7.0	$29.2	$27.5
+ Total Def Rev, End	$23.6	$21.9	$23.0	$34.0	$36.2	$33.6	$34.3	$33.6	$38.5	$34.1	$30.2	$34.0	$33.6
- Total Def Rev, Beginning	$20.3	$23.6	$21.9	$23.0	$34.0	$36.2	$33.6	$34.3	$33.6	$38.5	$34.1	$20.3	$34.0
Ending Cash ($M)	--	--	--	$31.5	$19.0	$14.1	$73.9	$47.7	$31.4	$9.7	$8.2	--	--

ARRis calculated at a particular measurement date as the annualized value of our then existing customer subscription contracts and the portions of other software and product contracts that are to be recognized over the course of the contracts and that are designed to renew, assuming any contract that expires during the 12 months following the measurement date is renewed on its existing terms.

Dollar-BasedAverage Contract Lengthis calculated from a set of customers against the same metric as of a prior period end. Because many of our customers have similar buying patterns and the average term of our contracts is more than 12 months, this metric provides a means of assessing the degree of built-in revenue repetition that exists across our customer base.

We calculate our dollar-based average contract length as follows, by dividing the Numerator by the Denominator:

• Numerator: We multiply the average total length of the contracts, measured in years or fractions thereof, by the respective revenue recognized for the last six months of each reporting period.
• Denominator: We use the revenue attributable to software and product customers for the same six month period used in the numerator. This effectively represents the revenue base that is being generated by those customers.

Calculated billingsrepresents our total revenue plus the change in deferred revenue in a period. Calculated billings in any particular period aims to reflect amounts invoiced to customers to access our software-based, cybersecurity analytics products, cloud platform and professional services, together with related support services, for our new and existing customers.