CTV Revenue Grows Over 50% in Q3 on a Pro Forma Basis and
Represents 38% of Revenue ex-TAC
Recent Magnite Highlights
- Revenue of
$131.9 million for Q3 2021, up 116% from Q3 2020 - Revenue ex-TAC(2) of
$114.1 million for Q3 2021, up 89% from Q3 2020 and up 26% on a pro-forma basis(1) - Revenue ex-TAC(2) attributable to CTV of
$43.1 million for Q3 2021, up 290% year over year, and up 51% on a pro forma basis(1) - Net loss of
$24.3 million in Q3 2021, for a loss per share of$0.18 , compared to net loss of$10.5 million , for a loss per share of$0.10 in Q3 of 2020 - Adjusted EBITDA(2) of
$40.0 million in Q3 2021 representing a margin of 35%(4), as compared to Adjusted EBITDA of$13.7 million in Q3 of 2020 - Non-GAAP earnings per share(2) of
$0.14 for Q3 2021, compared to non-GAAP earnings per share of$0.06 for Q3 of 2020 - Operating free cash flow(5) in Q3 2021 was
$34.0 million - SpringServe acquisition closed on
July 1, 2021
Expectations:
- Revenue ex-TAC(2) for Q4 2021 to be between
$138 million and$142 million - Revenue ex-TAC(2) attributable to CTV for Q4 2021 to be between
$52 million and$56 million - Adjusted EBITDA operating expenses(3) to be between
$79 and$81 million for Q4 2021 - Total capital expenditures for Q4 2021 to be approximately
$8 million
“We are pleased with the Company's recent performance in our CTV and DV+ business in Q3, which drove top line growth. Our business continued to show substantial leverage as we exceeded expectations on the bottom line. We also added a very strategic technology this quarter with SpringServe’s ad server, to further enhance our strong CTV market position and better serve customers in this exciting market. We expect solid growth in Q4, even with some pockets of sector weakness in the broader economy, and continue to be excited about the long term growth outlook for the industry and our business ,” said
Third Quarter 2021 Results Summary | |||||||||||||
(in millions, except per share amounts and percentages) | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
Change Favorable/ (Unfavorable) | Change Favorable/ (Unfavorable) | ||||||||||||
Revenue | 116% | 120% | |||||||||||
Revenue ex-TAC(2) | 89% | 98% | |||||||||||
Net income (loss) | ( | ( | (131)% | ( | ( | 99% | |||||||
Adjusted EBITDA(2) | 191% | 521% | |||||||||||
Adjusted EBITDA operating expenses(3) | 59% | 54% | |||||||||||
Adjusted EBITDA margin(4) | 35% | 23% | 12 ppt | 30% | 9% | 21 ppt | |||||||
Basic earnings (loss) per share | ( | ( | (80)% | $— | ( | 100% | |||||||
Diluted earnings (loss) per share | ( | ( | (80)% | $— | ( | 100% | |||||||
Non-GAAP earnings (loss) per share(2) | 133% | ( | 514% |
Footnotes: | ||
(1 | ) | When Q3 year-over-year comparisons are referred to as pro-forma, they include SpotX and SpringServe results for Q3 2020. |
(2 | ) | Revenue ex-TAC, Adjusted EBITDA, Adjusted EBITDA operating expenses, and non-GAAP earnings (loss) per share are non-GAAP financial measures. Please see the discussion in the section called "Non-GAAP Financial Measures" and the reconciliations included at the end of this press release. |
(3 | ) | Adjusted EBITDA operating expenses is calculated as Revenue ex-TAC less Adjusted EBITDA. |
(4 | ) | Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Revenue ex-TAC. |
(5 | ) | Operating free cash flow is calculated as Adjusted EBITDA less capital expenditures. |
Third Quarter 2021 Results Conference Call and Webcast:
The Company will host a conference call on
Live conference call | |
Toll free number: | (844) 875-6911 (for domestic callers) |
Direct dial number: | (412) 902-6511 (for international callers) |
Passcode: | Ask to join the |
Simultaneous audio webcast: | investor.magnite.com under "Events and Presentations" |
Conference call replay | |
Toll free number: | (877) 344-7529 (for domestic callers) |
Direct dial number: | (412) 317-0088 (for international callers) |
Passcode: | 10161248 |
Webcast link: | investor.magnite.com under "Events and Presentations" |
About
We’re
Note:
Forward-Looking Statements:
This press release and management's prepared remarks during the conference call referred to above include, and management's answers to questions during the conference call may include, forward-looking statements, including statements based upon or relating to our expectations, assumptions, estimates, and projections. In some cases, you can identify forward-looking statements by terms such as "may," "might," "will," "objective," "intend," "should," "could," "can," "would," "expect," "believe," "design," "anticipate," "estimate," "predict," "potential," "plan" or the negative of these terms, and similar expressions. Forward-looking statements may include, but are not limited to, statements concerning the acquisition of
We discuss many of these risks and additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," and elsewhere in this press release and in other filings we have made and will make from time to time with the
Non-GAAP Financial Measures and Operational Measures:
In addition to our GAAP results, we review certain non-GAAP financial measures to help us evaluate our business, measure our performance, identify trends affecting our business, establish budgets, measure the effectiveness of investments in our technology and development and sales and marketing, and assess our operational efficiencies. These non-GAAP measures include Revenue ex-TAC, Adjusted EBITDA, Non-GAAP Income (Loss) and Non-GAAP Earnings (Loss) per share, each of which is discussed below.
These non-GAAP financial measures are not intended to be considered in isolation from, as substitutes for, or as superior to, the corresponding financial measures prepared in accordance with GAAP. You are encouraged to evaluate these adjustments, and review the reconciliation of these non-GAAP financial measures to their most comparable GAAP measures, and the reasons we consider them appropriate. It is important to note that the particular items we exclude from, or include in, our non-GAAP financial measures may differ from the items excluded from, or included in, similar non-GAAP financial measures used by other companies. See "Reconciliation of Revenue to Revenue ex-TAC," "Reconciliation of net income (loss) to Adjusted EBITDA," "Reconciliation of net income (loss) to non-GAAP income (loss)," and "Reconciliation of GAAP earnings (loss) per share to non-GAAP earnings (loss) per share" included as part of this press release.
We do not provide a reconciliation of our non-GAAP financial expectations for Revenue ex-TAC, Adjusted EBITDA, and Adjusted EBITDA operating expenses because the amount and timing of many future charges that impact these measures (such as amortization of future acquired intangible assets, acquisition-related charges, foreign exchange (gain) loss, net, stock-based compensation, impairment charges, provision or benefit for income taxes, and our future revenue mix), which could be material, are variable, uncertain, or out of our control and therefore cannot be reasonably predicted without unreasonable effort, if at all. In addition, we believe such reconciliations could imply a degree of precision that might be confusing or misleading to investors.
Revenue ex-TAC:
Revenue ex-TAC is revenue excluding traffic acquisition cost ("TAC"). Traffic acquisition cost, a component of Cost of revenue, represents what we must pay sellers for the sale of advertising inventory through our platform for revenue reported on a gross basis. In calculating Revenue ex-TAC, we add back the cost of revenue, excluding TAC, to gross profit, the most comparable GAAP measurement. Revenue ex-TAC is a non-GAAP financial measure. We believe Revenue ex-TAC is a useful measure in assessing the performance of
Adjusted EBITDA:
We define Adjusted EBITDA as net income (loss) adjusted to exclude stock-based compensation expense, depreciation and amortization, amortization of acquired intangible assets, impairment charges, interest income or expense, and other cash and non-cash based income or expenses that we do not consider indicative of our core operating performance, including, but not limited to foreign exchange gains and losses, acquisition and related items, non-operational real estate expense (income), net, and provision (benefit) for income taxes. We also track future expenses on an Adjusted EBITDA basis, and describe them as Adjusted EBITDA operating expenses, which includes total operating expenses. Total operating expenses include cost of revenue. We adjust Adjusted EBITDA operating expenses for the same expense items excluded in Adjusted EBITDA. We believe Adjusted EBITDA is useful to investors in evaluating our performance for the following reasons:
- Adjusted EBITDA is widely used by investors and securities analysts to measure a company’s performance without regard to items such as those we exclude in calculating this measure, which can vary substantially from company to company depending upon their financing, capital structures, and the method by which assets were acquired.
- Our management uses Adjusted EBITDA in conjunction with GAAP financial measures for planning purposes, including the preparation of our annual operating budget, as a measure of performance and the effectiveness of our business strategies, and in communications with our board of directors concerning our performance. Adjusted EBITDA may also be used as a metric for determining payment of cash incentive compensation.
- Adjusted EBITDA provides a measure of consistency and comparability with our past performance that many investors find useful, facilitates period-to-period comparisons of operations, and also facilitates comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results.
Although Adjusted EBITDA is frequently used by investors and securities analysts in their evaluations of companies, Adjusted EBITDA has limitations as an analytical tool, and should not be considered in isolation or as a substitute for analysis of our results of operations as reported under GAAP. These limitations include:
- Stock-based compensation is a non-cash charge and will remain an element of our long-term incentive compensation package, although we exclude it as an expense when evaluating our ongoing operating performance for a particular period.
- Depreciation and amortization are non-cash charges, and the assets being depreciated or amortized will often have to be replaced in the future, but Adjusted EBITDA does not reflect any cash requirements for these replacements.
- Impairment charges are non-cash charges related to goodwill, intangible assets and/or long-lived assets.
- Adjusted EBITDA does not reflect non-cash charges related to acquisition and related items, such as amortization of acquired intangible assets, merger related severance costs, and changes in the fair value of contingent consideration.
- Adjusted EBITDA does not reflect cash and non-cash charges and changes in, or cash requirements for, acquisition and related items, such as certain transaction expenses and expenses associated with earn-out amounts.
- Adjusted EBITDA does not reflect changes in our working capital needs, capital expenditures, non-operational real estate expenses or income, or contractual commitments.
- Adjusted EBITDA does not reflect cash requirements for income taxes and the cash impact of other income or expense.
- Other companies may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.
Our Adjusted EBITDA is influenced by fluctuations in our revenue, cost of revenue, and the timing and amounts of the cost of our operations. Adjusted EBITDA should not be considered as an alternative to net income (loss), income (loss) from operations, or any other measure of financial performance calculated and presented in accordance with GAAP.
Non-GAAP Income (Loss) and Non-GAAP Earnings (Loss) per Share:
We define non-GAAP earnings (loss) per share as non-GAAP income (loss) divided by non-GAAP weighted-average shares outstanding. Non-GAAP income (loss) is equal to net income (loss) excluding stock-based compensation, cash and non-cash based acquisition and related expenses, including amortization of acquired intangible assets, merger related severance costs, transaction expenses, non-operational real estate expenses or income, foreign currency gains and losses, and in periods in which the Company generates net income, non-GAAP net income also excludes interest expense associated with Convertible Senior Notes. In periods in which we have non-GAAP income, non-GAAP weighted-average shares outstanding used to calculate non-GAAP earnings per share includes the impact of potentially dilutive shares. Potentially dilutive shares consist of stock options, restricted stock awards, restricted stock units, performance stock units, and potential shares issued under the Employee Stock Purchase Plan, each computed using the treasury stock method. In periods in which the Company generates net income, non-GAAP weighted-average shares will also include the impact of shares that would be issuable assuming conversion of all of the Convertible Senior Notes, calculated under the if-converted method. We believe non-GAAP earnings (loss) per share is useful to investors in evaluating our ongoing operational performance and our trends on a per share basis, and also facilitates comparison of our financial results on a per share basis with other companies, many of which present a similar non-GAAP measure. However, a potential limitation of our use of non-GAAP earnings (loss) per share is that other companies may define non-GAAP earnings (loss) per share differently, which may make comparison difficult. This measure may also exclude expenses that may have a material impact on our reported financial results. Non-GAAP earnings (loss) per share is a performance measure and should not be used as a measure of liquidity. Because of these limitations, we also consider the comparable GAAP measure of net income (loss).
Investor Relations Contact
(949) 500-0003
nkormeluk@magnite.com
Media Contact
(516) 300-3569
press@magnite.com
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 188,182 | $ | 117,676 | |||||
Accounts receivable, net | 765,076 | 471,666 | |||||||
Prepaid expenses and other current assets | 20,992 | 17,729 | |||||||
TOTAL CURRENT ASSETS | 974,250 | 607,071 | |||||||
Property and equipment, net | 32,759 | 23,681 | |||||||
Right-of-use lease asset | 64,591 | 39,599 | |||||||
Internal use software development costs, net | 19,130 | 16,160 | |||||||
Intangible assets, net | 463,571 | 89,884 | |||||||
972,747 | 158,125 | ||||||||
Other assets, non-current | 6,062 | 4,440 | |||||||
TOTAL ASSETS | $ | 2,533,110 | $ | 938,960 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Current liabilities: | |||||||||
Accounts payable and accrued expenses | $ | 828,501 | $ | 509,315 | |||||
Lease liabilities, current | 15,033 | 9,813 | |||||||
Debt, current | 3,600 | — | |||||||
Other current liabilities | 11,773 | 3,070 | |||||||
TOTAL CURRENT LIABILITIES | 858,907 | 522,198 | |||||||
Deferred tax liability | 19,488 | 199 | |||||||
Debt, non-current, net of debt issuance costs | 719,333 | — | |||||||
Lease liabilities, non-current | 55,999 | 32,278 | |||||||
Other liabilities, non-current | 2,618 | 2,672 | |||||||
TOTAL LIABILITIES | 1,656,345 | 557,347 | |||||||
STOCKHOLDERS' EQUITY | |||||||||
Common stock | 2 | 2 | |||||||
Additional paid-in capital | 1,273,093 | 777,084 | |||||||
Accumulated other comprehensive loss | (1,426 | ) | (957 | ) | |||||
Accumulated deficit | (394,904 | ) | (394,516 | ) | |||||
TOTAL STOCKHOLDERS' EQUITY | 876,765 | 381,613 | |||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 2,533,110 | $ | 938,960 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(unaudited)
Three Months Ended | Nine Months Ended | ||||||||||||||||||
Revenue | $ | 131,871 | $ | 60,982 | $ | 307,127 | $ | 139,625 | |||||||||||
Expenses (1)(2): | |||||||||||||||||||
Cost of revenue | 63,541 | 21,031 | 134,823 | 56,579 | |||||||||||||||
Sales and marketing | 52,260 | 21,761 | 118,122 | 53,059 | |||||||||||||||
Technology and development | 21,059 | 13,562 | 53,436 | 37,318 | |||||||||||||||
General and administrative | 16,535 | 13,314 | 47,673 | 38,221 | |||||||||||||||
Merger, acquisition, and restructuring costs | 2,424 | 2,254 | 37,778 | 16,677 | |||||||||||||||
Total expenses | 155,819 | 71,922 | 391,832 | 201,854 | |||||||||||||||
Loss from operations | (23,948 | ) | (10,940 | ) | (84,705 | ) | (62,229 | ) | |||||||||||
Other (income) expense: | |||||||||||||||||||
Interest income (expense), net | 7,280 | 30 | 12,595 | (112 | ) | ||||||||||||||
Other income | (955 | ) | (1,194 | ) | (3,317 | ) | (2,487 | ) | |||||||||||
Foreign exchange (gain) loss, net | (1,246 | ) | 293 | (1,358 | ) | (845 | ) | ||||||||||||
Total other (income) expense, net | 5,079 | (871 | ) | 7,920 | (3,444 | ) | |||||||||||||
Loss before income taxes | (29,027 | ) | (10,069 | ) | (92,625 | ) | (58,785 | ) | |||||||||||
Provision (benefit) for income taxes | (4,708 | ) | 446 | (92,237 | ) | 533 | |||||||||||||
Net loss | $ | (24,319 | ) | $ | (10,515 | ) | $ | (388 | ) | $ | (59,318 | ) | |||||||
Net loss per share: | |||||||||||||||||||
Basic and Diluted | $ | (0.18 | ) | $ | (0.10 | ) | $ | — | $ | (0.65 | ) | ||||||||
Weighted average shares used to compute loss per share: | |||||||||||||||||||
Basic and Diluted | 131,501 | 110,416 | 124,325 | 91,371 |
(1) Stock-based compensation expense included in our expenses was as follows:
| Three Months Ended | Nine Months Ended | |||||||||||||
Cost of revenue | $ | 278 | $ | 122 | $ | 530 | $ | 412 | |||||||
Sales and marketing | 4,583 | 2,309 | 10,426 | 5,928 | |||||||||||
Technology and development | 3,828 | 2,061 | 8,195 | 5,469 | |||||||||||
General and administrative | 3,087 | 2,504 | 8,299 | 7,935 | |||||||||||
Merger, acquisition, and restructuring costs | 48 | 354 | 1,071 | 1,554 | |||||||||||
Total stock-based compensation expense | $ | 11,824 | $ | 7,350 | $ | 28,521 | $ | 21,298 |
(2) Depreciation and amortization expense included in our expenses was as follows:
Three Months Ended | Nine Months Ended | ||||||||||||||
Cost of revenue | $ | 24,764 | $ | 9,579 | $ | 52,108 | $ | 26,407 | |||||||
Sales and marketing | 23,569 | 4,317 | 44,037 | 8,962 | |||||||||||
Technology and development | 190 | 143 | 468 | 340 | |||||||||||
General and administrative | 179 | 37 | 471 | 448 | |||||||||||
Total depreciation and amortization expense | $ | 48,702 | $ | 14,076 | $ | 97,084 | $ | 36,157 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
Nine Months Ended | |||||||||
OPERATING ACTIVITIES: | |||||||||
Net loss | $ | (388 | ) | $ | (59,318 | ) | |||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||||
Depreciation and amortization | 97,084 | 36,157 | |||||||
Stock-based compensation | 28,521 | 21,298 | |||||||
(Gain) loss on disposal of property and equipment | 78 | (17 | ) | ||||||
Provision for doubtful accounts | 217 | 31 | |||||||
Amortization of debt issuance costs | 3,223 | — | |||||||
Non-cash lease expense | 1,825 | (601 | ) | ||||||
Deferred income taxes | (91,540 | ) | 837 | ||||||
Unrealized foreign currency gains, net | (2,578 | ) | (2,108 | ) | |||||
Changes in operating assets and liabilities: | |||||||||
Accounts receivable | (92,131 | ) | (46,145 | ) | |||||
Prepaid expenses and other assets | (297 | ) | (2,896 | ) | |||||
Accounts payable and accrued expenses | 113,795 | 23,464 | |||||||
Other liabilities | 191 | 5,260 | |||||||
Net cash provided by (used in) operating activities | 58,000 | (24,038 | ) | ||||||
INVESTING ACTIVITIES: | |||||||||
Purchases of property and equipment | (13,985 | ) | (4,211 | ) | |||||
Capitalized internal use software development costs | (8,525 | ) | (6,894 | ) | |||||
Cash (used in), net of cash acquired, in merger and acquisition activities | (653,060 | ) | 54,595 | ||||||
Net cash (used in) provided by investing activities | (675,570 | ) | 43,490 | ||||||
FINANCING ACTIVITIES: | |||||||||
Proceeds from Convertible Senior Notes offering | 400,000 | — | |||||||
Proceeds from issuance of debt, net of debt discount | 349,200 | — | |||||||
Payment for capped call options | (38,960 | ) | — | ||||||
Payment for debt issuance costs | (30,378 | ) | — | ||||||
Proceeds from exercise of stock options | 8,747 | 3,868 | |||||||
Proceeds from issuance of common stock under employee stock purchase plan | 1,154 | 693 | |||||||
Repayment of debt | (900 | ) | — | ||||||
Taxes paid related to net share settlement | — | (7,841 | ) | ||||||
Net cash provided by (used in) financing activities | 688,863 | (3,280 | ) | ||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (591 | ) | 41 | ||||||
CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 70,702 | 16,213 | |||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — Beginning of period | 117,731 | 88,888 | |||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — End of period | $ | 188,433 | $ | 105,101 | |||||
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO CONSOLIDATED BALANCE SHEETS | |||||||||
Cash and cash equivalents | $ | 188,182 | $ | 103,797 | |||||
Restricted cash included in other asset, non-current, and prepaid expenses and other current assets | 251 | 1,304 | |||||||
Total cash, cash equivalents and restricted cash | $ | 188,433 | $ | 105,101 |
Nine Months Ended | |||||||
SUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION: | |||||||
Cash paid for income taxes | $ | 1,221 | $ | 829 | |||
Cash paid for interest | $ | 7,671 | $ | 49 | |||
Capitalized assets financed by accounts payable and accrued expenses | $ | 1,513 | $ | 2,388 | |||
Capitalized stock-based compensation | $ | 956 | $ | 616 | |||
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities | $ | 22,651 | $ | 2,036 | |||
Purchase consideration - indemnification claims holdback | $ | 1,409 | $ | — | |||
Common stock and options issued for merger | $ | 495,591 | $ | 287,418 | |||
Debt discount, non-cash | $ | 10,800 | $ | — |
RECONCILIATION OF REVENUE TO GROSS PROFIT TO REVENUE EX-TAC
(In thousands)
(unaudited)
Three Months Ended | Nine Months Ended | ||||||||||||||
Revenue | $ | 131,871 | $ | 60,982 | $ | 307,127 | $ | 139,625 | |||||||
Less: Cost of revenue | 63,541 | 21,031 | 134,823 | 56,579 | |||||||||||
Gross Profit | 68,330 | 39,951 | 172,304 | 83,046 | |||||||||||
Add back: Cost of revenue, excluding TAC | 45,734 | 20,351 | 102,052 | 55,601 | |||||||||||
Revenue ex-TAC | $ | 114,064 | $ | 60,302 | $ | 274,356 | $ | 138,647 |
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
(In thousands)
(unaudited)
Three Months Ended | Nine Months Ended | ||||||||||||||||||
Net loss | $ | (24,319 | ) | $ | (10,515 | ) | $ | (388 | ) | $ | (59,318 | ) | |||||||
Add back (deduct): | |||||||||||||||||||
Depreciation and amortization expense, excluding amortization of acquired intangible assets | 6,518 | 6,254 | 17,771 | 19,253 | |||||||||||||||
Amortization of acquired intangibles | 42,184 | 7,822 | 79,313 | 16,904 | |||||||||||||||
Stock-based compensation expense | 11,824 | 7,350 | 28,521 | 21,298 | |||||||||||||||
Merger, acquisition, and restructuring costs, excluding stock-based compensation expense | 2,376 | 1,900 | 36,707 | 15,123 | |||||||||||||||
Non-operational real estate expense (income), net | 57 | 163 | 197 | 203 | |||||||||||||||
Interest expense (income), net | 7,280 | 30 | 12,595 | (112 | ) | ||||||||||||||
Foreign exchange (gain) loss, net | (1,246 | ) | 293 | (1,358 | ) | (845 | ) | ||||||||||||
Other non-operating (income) expense, net | — | 6 | — | 15 | |||||||||||||||
Provision (benefit) for income taxes | (4,708 | ) | 446 | (92,237 | ) | 533 | |||||||||||||
Adjusted EBITDA | $ | 39,966 | $ | 13,749 | $ | 81,121 | $ | 13,054 |
RECONCILIATION OF NET INCOME (LOSS) TO NON-GAAP INCOME (LOSS)
(In thousands)
(unaudited)
Three Months Ended | Nine Months Ended | ||||||||||||||||||
Net loss | $ | (24,319 | ) | $ | (10,515 | ) | $ | (388 | ) | $ | (59,318 | ) | |||||||
Add back (deduct): | |||||||||||||||||||
Merger, acquisition, and restructuring costs, including amortization of acquired intangibles and excluding stock-based compensation expense | 44,560 | 9,722 | 116,020 | 32,027 | |||||||||||||||
Stock-based compensation expense | 11,824 | 7,350 | 28,521 | 21,298 | |||||||||||||||
Non-operational real estate expense (income), net | 57 | 163 | 197 | 203 | |||||||||||||||
Foreign exchange (gain) loss, net | (1,246 | ) | 293 | (1,358 | ) | (845 | ) | ||||||||||||
Other non-operating (income) expense, net | — | 6 | — | 15 | |||||||||||||||
Interest expense, Convertible Senior Notes | 327 | — | 544 | — | |||||||||||||||
Tax effect of Non-GAAP adjustments (1) | (10,868 | ) | 239 | (103,287 | ) | (131 | ) | ||||||||||||
Non-GAAP income (loss) | $ | 20,335 | $ | 7,258 | $ | 40,249 | $ | (6,751 | ) |
(1 | ) | Non-GAAP income (loss) includes the estimated tax impact from the expense items reconciling between net loss and non-GAAP income (loss). |
RECONCILIATION OF GAAP EARNINGS (LOSS) PER SHARE TO NON-GAAP EARNINGS (LOSS) PER SHARE
(In thousands, except per share amounts)
(unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||||
GAAP loss per share (1): | ||||||||||||||||||
Basic and Diluted | $ | (0.18 | ) | $ | (0.10 | ) | $ | — | $ | (0.65 | ) | |||||||
Non-GAAP income (loss) (2) | $ | 20,335 | $ | 7,258 | $ | 40,249 | $ | (6,751 | ) | |||||||||
Non-GAAP earnings (loss) per share | $ | 0.14 | $ | 0.06 | $ | 0.29 | $ | (0.07 | ) | |||||||||
Weighted-average shares used to compute basic earnings (loss) per share | 131,501 | 110,416 | 124,325 | 91,371 | ||||||||||||||
Dilutive effect of weighted-average common stock options, RSUs, and PSUs | 8,564 | 5,702 | 10,784 | — | ||||||||||||||
Dilutive effect of weighted-average ESPP | 11 | 30 | 49 | — | ||||||||||||||
Dilutive effect of weighted-average Convertible Senior Notes | 6,262 | — | 4,499 | — | ||||||||||||||
Non-GAAP weighted-average shares outstanding (3) | 146,338 | 116,148 | 139,657 | 91,371 |
(1) Calculated as net income (loss) divided by basic and diluted weighted-average shares used to compute earnings (loss) per share as included in the consolidated statement of operations.
(2) Refer to reconciliation of net income (loss) to non-GAAP income (loss).
(3) Non-GAAP earnings (loss) per share is computed using the same weighted-average number of shares that are used to compute GAAP earnings (loss) per share in periods where there is both a non-GAAP loss and a GAAP net loss.
REVENUE EX-TAC BY CHANNEL
(In thousands)
(unaudited)
Revenue ex-TAC | |||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
Channel: | |||||||||||||||||||||||||||
CTV | $ | 43,142 | 38 | % | $ | 11,059 | 18 | % | $ | 89,382 | 33 | % | $ | 18,978 | 14 | % | |||||||||||
Desktop | 29,192 | 26 | % | 20,222 | 34 | % | 76,566 | 28 | % | 50,490 | 36 | % | |||||||||||||||
Mobile | 41,730 | 36 | % | 29,021 | 48 | % | 108,408 | 39 | % | 69,179 | 50 | % | |||||||||||||||
Total | $ | 114,064 | 100 | % | $ | 60,302 | 100 | % | $ | 274,356 | 100 | % | $ | 138,647 | 100 | % |
Source:
2021 GlobeNewswire, Inc., source