WALKME LTD. - Ended 2023 generating
$11.5M and 4% margin in FCF compared to a cash burn of$53.9M and (22%) last year. - 4Q23 Non-GAAP Operating Income of
$4.8M or 7% compared to a loss of ($10.5M ) or (16%) in 4Q22. - Finished the year for the first time with a Non-GAAP Net Income per share of
$0.04 compared to a loss of ($0.66 ) for 2022.
Management Commentary
“2023 was a transformational year for
“In 2023
2023 Financial Highlights
- Revenue: Subscription revenue was
$248 million , an increase of 12% year-over-year. Total revenue was$267 million , an increase of 9% year-over-year. - Gross Margin: GAAP Gross margin was 83% compared to 78% in 2022 and Non-GAAP Gross margin was 85%, compared to 80% in 2022.
- GAAP Operating Loss: was
$64.8 million , or 24% of total revenue, compared to$109.8 million , or 45% of total revenue in 2022. - Non-GAAP Operating Loss: was
$4.7 million or 2% of total revenue, compared to$58.3 million , or 24% of total revenue in 2022. - Basic and diluted Earnings Per Share: Non-GAAP Net Income Per Share of
$0.04 and GAAP Net Loss Per Share of ($0.67 ), compared to a loss of ($0.66 ) and ($1.09 ) in 2022 respectively. - Operating Cash Flow: Net cash provided by operating activity was
$15.3 million , or 6% of total revenue, compared to($46.8) million used in operating activity or (19%) in 2022. - Free Cash Flow: was a positive
$11.5 million or 4% of total revenue, compared to negative($53.9) million , or (22%) in 2022. - Remaining Performance Obligations: RPO was
$384 million at the end of 2023, compared to$374 million at the end of 2022.
Fourth Quarter 2023 Financial Highlights:
- Revenue: Subscription revenue was
$63.4 million , an increase of 8% year-over-year. Total revenue was$67.9 million , an increase of 5% year-over-year. - Gross Margin: GAAP Gross margin was 85%, compared to 81% in the fourth quarter of 2022. Non-GAAP Gross margin was 86%, compared to 82% in the fourth quarter of 2022.
- GAAP Operating Loss: was
$11.7 million , or 17% of total revenue, compared to$22.6 million , or 35% in the fourth quarter of 2022. - Non-GAAP Operating Income: was
$4.8 million or 7% of total revenue, compared to a loss of($10.5) million , or (16%) in the fourth quarter of 2022. - Diluted Earnings Per Share: Non-GAAP Net Income Per Share of
$0.07 and GAAP Net Loss Per Share of ($0.12 ), compared to a loss of ($0.10 ) and ($0.22 ) in the fourth quarter of 2022 respectively. - Operating Cash Flow: Net cash provided by operating activity was
$9.2 million , or 13% of total revenue, compared to($8.8) million used in operating activity or (14%) in the fourth quarter of 2022. - Free Cash Flow: was a positive
$8.4 million or 12% of total revenue, compared to negative($10.2) million , or (16%) in the fourth quarter of 2022. - Cash, Cash Equivalents,
Short-term Deposits and Marketable Securities : were$321.8 million as ofDecember 31, 2023 .
Recent Business Highlights:
- Ending 2023 ARR of
$276M , up 5% year over year with 96% of ARR from customers with more than 500 employees compared to 94% at the end of 2022. - DAP customers of 199 as of
December 31, 2023 , representing DAP customer count growth of 15% year-over-year. ARR from DAP customers represented 53% of total ARR, up from 50% last year. - Reached a new high of 41 customers with over
$1 million in ARR now represent 34% of ARR compared to 32% last year. - 548 Customers with over
$100,000 in ARR represents 85% of ARR compared to 514 customers and 82% last year. - Launched Workflow Accelerators - predefined solutions for key enterprise workflows across HR, sales, IT, finance, and customer service that drive measurable business outcomes.
- Named A Leader and A Star Performer in Everest Group Digital Adoption Platform PEAK Matrix® Assessment 2023 for fourth consecutive year.
- Released the 2024 State of Digital Adoption Report which showed that enterprises on average lose over
$1 million per week due to inability to correctly utilize technology and that of those served 70% or organizations list digital adoption as a strategic priority for 2024. - WalkMe Discovery and Data AI solutions showed continued momentum with the number of employees covered growing over 50% quarter over quarter.
Financial Outlook:
For the first quarter of 2024, the Company currently expects:
- Revenue of
$67.6 to$68.6 million - Non-GAAP Operating Income of
$0.3 to$1.3 million
For the full year 2024, the Company currently expects:
- Revenue of
$279 to$283 million - Non-GAAP Operating Income of
$8 to$11 million
The section titled “Non-GAAP Financial Measures and Key Performance Indicators” below contains a description of the non-GAAP financial measures and Key Performance Indicators discussed in this press release and reconciliations between historical GAAP and non-GAAP information are contained in the tables below. The Company is unable to provide a reconciliation of non-GAAP Operating Income (Loss) to Operating Income (Loss), its most directly comparable GAAP financial measure, on a forward-looking basis without unreasonable effort, because items that impact this GAAP financial measure are not within the Company’s control and/or cannot be reasonably predicted. These items may include, but are not limited to, predicting forward-looking share-based compensation. Such information may have a significant, and potentially unpredictable, impact on the Company’s future financial results.
Throughout this press release, we provide a number of key performance indicators used by our management and often used by competitors in our industry. These and other key performance indicators are discussed in more detail in the section entitled “Non-GAAP Financial Measures and Key Performance Indicators” in this press release.
Conference Call Information:
A live webcast of the conference call will be accessible on the
Approximately one hour after completion of the live call and for at least 30 days thereafter, an archived version of the webcast will be available on the Company’s investor relations website at https://ir.walkme.com.
Supplemental Financial and Other Information:
We intend to announce material information to the public through the
Any updates to the list of disclosure channels through which we will announce information will be posted on the investor relations page of our website.
Non-GAAP Financial Measures and Key Performance Indicators:
In addition to our financial results reported in accordance with GAAP, this press release and the accompanying tables and related presentation materials may contain one or more of the following non-GAAP financial measures: Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Operating Income (Loss), Non-GAAP Operating Margin, Non-GAAP Net Income (Loss) attributable to
Non-GAAP Gross Profit and Non-GAAP Gross Margin. We define Non-GAAP Gross Profit as gross profit excluding share-based compensation, amortization of acquired intangibles, restructuring expenses and non-recurring legal settlement expenses related to a complex class action lawsuit and related claims which are considered outside of the company's ordinary course of business. We exclude these items because they occur for reasons that may be unrelated to our core operating performance during the period, and because we believe that such items may obscure underlying business trends and make comparisons of long-term performance difficult. We use Non-GAAP Gross Profit with traditional GAAP measures to evaluate our financial performance. Non-GAAP Gross Margin is calculated as a percentage of revenues.
Non-GAAP Operating Income (Loss) and Non-GAAP Operating Margin. We define Non-GAAP Operating Income (Loss) as net income (loss) from operations excluding share-based compensation, amortization and impairment of acquired intangible assets, restructuring expenses and non-recurring legal settlement expenses related to a complex class action lawsuit and related claims which are considered outside of the company's ordinary course of business. We exclude these items because they occur for reasons that may be unrelated to our core operating performance during the period, and because we believe that such items may obscure underlying business trends and make comparisons of long-term performance difficult. We use Non-GAAP Operating Income (Loss) with traditional GAAP measures to evaluate our financial performance. Non-GAAP Operating Margin is calculated as a percentage of revenues.
Non-GAAP Net Income (Loss) attributable to
Free Cash Flow. We define Free Cash Flow as net cash provided by (used in) operating activities, less cash used for purchases of property and equipment and capitalized internal-use software development costs. We believe that Free Cash Flow is a useful indicator of liquidity that provides information to management and investors, even if negative, about the amount of cash used in our business. Our Free Cash Flow may vary from period to period and be impacted as we continue to invest for growth in our business.
ARR. We define ARR as the annualized value of customer subscription contracts as of the measurement date, assuming any contract that expires during the next 12 months is renewed on its existing terms (including contracts for which we are negotiating a renewal). Our calculation of ARR is not adjusted for the impact of any known or projected future events (such as customer cancellations, upgrades or downgrades, or price increases or decreases) that may cause any such contract not to be renewed on its existing terms. In addition, the amount of actual revenue that we recognize over any 12-month period is likely to differ from ARR at the beginning of that period, sometimes significantly. This may occur due to new bookings, cancellations, upgrades, downgrades or other changes in pending renewals, as well as the effects of professional services revenue and acquisitions or divestitures. As a result, ARR should be viewed independently of, and not as a substitute for or forecast of, revenue and deferred revenue. Our calculation of ARR may differ from similarly titled metrics presented by other companies.
Enterprise-Wide DAP Customers: We define Enterprise-Wide DAP Customers as those who have purchased enterprise-wide subscriptions or who have department-wide usage of our Digital Adoption Platform across four or more applications. We believe these customers are an indication of the success of our customer acquisition and expansion strategy and demonstrate the strategic demand for our Digital Adoption Platform, the growth of our business, and our potential future business opportunities.
For more information on the non-GAAP financial measures, please see the reconciliation tables provided in this press release. The accompanying reconciliation tables have more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures.
Special Note Regarding Forward-Looking Statements:
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding the Company’s future financial results, including revenue and non-GAAP operating loss guidance, and expectations regarding the Company’s ARR growth, operations and future profitability; the capabilities of and demand for the Company’s services; the growth and evolution of the digital adoption platform industry; the Company's future financial strategy and competitive market position within the industry are all forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. These forward-looking statements are subject to risks, uncertainties and assumptions, some of which are beyond our control. In addition, these forward-looking statements reflect our current views with respect to future events and are not a guarantee of future performance. Actual outcomes may differ materially from the information contained in the forward-looking statements as a result of a number of factors, including, without limitation, the following: our ability to manage our growth effectively, sustain our historical growth rate in the future or achieve or maintain profitability; the impact of adverse macro-economic changes on our business, financial condition and results of operations; the growth and expansion of the markets for our offerings and our ability to adapt and respond effectively to evolving market conditions; our estimates of, and future expectations regarding, our market opportunity; our ability to keep pace with technological and competitive developments and develop or otherwise introduce new products and solutions and enhancements to our existing offerings; our ability to maintain the interoperability of our offerings across devices, operating systems and third-party applications and to maintain and expand our relationships with third-party technology partners; the effects of increased competition in our target markets and our ability to compete effectively; our ability to attract and retain new customers and to expand within our existing customer base; the success of our sales and marketing operations, including our ability to realize efficiencies and reduce customer acquisition costs; risks related to the war in
About
Media Contact:
press@walkme.com
Investor Contact:
investors@walkme.com
| Condensed Consolidated Statements of Operations | ||||||||||||
| (in thousands, except share and per share data; unaudited) | ||||||||||||
| Three months ended | Year ended | |||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||
| Revenues | ||||||||||||
| Subscription | $ | 63,351 | $ | 58,702 | $ | 247,715 | $ | 220,972 | ||||
| Professional services | 4,538 | 6,161 | 19,239 | 24,034 | ||||||||
| Total revenues | 67,889 | 64,863 | 266,954 | 245,006 | ||||||||
| Cost of revenues | ||||||||||||
| Subscription(1)(2)(3) | 6,403 | 5,938 | 25,360 | 25,990 | ||||||||
| Professional services(1)(3) | 3,582 | 6,511 | 19,013 | 27,894 | ||||||||
| Total cost of revenues | 9,985 | 12,449 | 44,373 | 53,884 | ||||||||
| Gross profit | 57,904 | 52,414 | 222,581 | 191,122 | ||||||||
| Operating expenses | ||||||||||||
| Research and development(1)(3) | 13,364 | 13,964 | 55,107 | 59,468 | ||||||||
| Sales and marketing(1)(3) | 38,337 | 45,314 | 161,372 | 176,307 | ||||||||
| General and administrative(1)(2)(3)(4) | 17,897 | 15,687 | 70,983 | 65,188 | ||||||||
| Total operating expenses | 69,598 | 74,965 | 287,462 | 300,963 | ||||||||
| Operating loss | (11,694 | ) | (22,551 | ) | (64,881 | ) | (109,841 | ) | ||||
| Financial income, net | 3,097 | 2,954 | 13,195 | 5,322 | ||||||||
| Loss before income taxes | (8,597 | ) | (19,597 | ) | (51,686 | ) | (104,519 | ) | ||||
| Income taxes | (1,150 | ) | (1,731 | ) | (5,067 | ) | (3,831 | ) | ||||
| Net loss | (9,747 | ) | (21,328 | ) | (56,753 | ) | (108,350 | ) | ||||
| Net loss attributable to non-controlling interest | (69 | ) | (376 | ) | (266 | ) | (743 | ) | ||||
| Adjustment attributable to non-controlling interest | 969 | (2,337 | ) | 2,649 | (14,979 | ) | ||||||
| Net loss attributable to | $ | (10,647 | ) | $ | (18,615 | ) | $ | (59,136 | ) | $ | (92,628 | ) |
| Net loss per share attributable to | $ | (0.12 | ) | $ | (0.22 | ) | $ | (0.67 | ) | $ | (1.09 | ) |
| Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic and diluted | 90,344,252 | 86,235,574 | 88,912,397 | 85,116,424 | ||||||||
| (1) Includes share-based compensation expense as follows: | ||||||||||||
| Three months ended | Year ended | |||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||
| Cost of subscription revenues | $ | 256 | $ | 260 | $ | 1,038 | $ | 1,092 | ||||
| Cost of professional services | 273 | 750 | 1,552 | 2,804 | ||||||||
| Research and development | 3,093 | 1,889 | 11,041 | 7,285 | ||||||||
| Sales and marketing | 4,538 | 5,191 | 17,671 | 19,126 | ||||||||
| General and administrative | 5,338 | 3,906 | 24,155 | 19,797 | ||||||||
| Total share-based compensation expense | $ | 13,498 | $ | 11,996 | $ | 55,457 | $ | 50,104 | ||||
| (2) Includes amortization and impairment of acquired intangibles as follows: | ||||||||||||
| Three months ended | Year ended | |||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||
| Cost of revenues | $ | 68 | $ | 68 | $ | 272 | $ | 488 | ||||
| General and administrative | - | - | - | 979 | ||||||||
| Total amortization and impairment expense | $ | 68 | $ | 68 | $ | 272 | $ | 1,467 | ||||
| (3) Includes restructuring expense as follows: | ||||||||||||
| Three months ended | Year ended | |||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||
| Cost of subscription revenues | $ | - | $ | - | $ | 40 | $ | - | ||||
| Cost of professional services | - | - | 223 | - | ||||||||
| Research and development | - | - | 86 | - | ||||||||
| Sales and marketing | - | - | 964 | - | ||||||||
| General and administrative | - | - | 160 | - | ||||||||
| Total restructuring expense | $ | - | $ | - | $ | 1,473 | $ | - | ||||
| (4) Includes legal settlement expense as follows: | ||||||||||||
| Three months ended | Year ended | |||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||
| General and administrative | 2,950 | - | 2,950 | - | ||||||||
| Total legal settlements expense | $ | 2,950 | $ | - | $ | 2,950 | $ | - | ||||
| Condensed Consolidated Balance Sheets | ||||||
| (in thousands; unaudited) | ||||||
| 2023 | 2022 | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 177,223 | $ | 94,105 | ||
| Short-term deposits | 28,027 | 125,231 | ||||
| Short-term marketable securities | 60,290 | 42,187 | ||||
| Trade receivables, net | 40,494 | 45,024 | ||||
| Deferred contract acquisition costs | 26,793 | 26,287 | ||||
| Prepaid expenses and other current assets | 8,739 | 6,243 | ||||
| Total current assets | 341,566 | 339,077 | ||||
| Non-current assets: | ||||||
| Long-term marketable securities | 56,282 | 43,334 | ||||
| Deferred contract acquisition costs | 30,267 | 40,110 | ||||
| Other assets | 317 | 584 | ||||
| Property and equipment, net | 12,059 | 13,268 | ||||
| Operating lease right-of-use assets | 12,005 | 7,003 | ||||
| 1,561 | 1,830 | |||||
| Total non-current assets | 112,491 | 106,129 | ||||
| Total assets | $ | 454,057 | $ | 445,206 | ||
| Liabilities, redeemable non-controlling interest and shareholders’ equity | ||||||
| Current liabilities: | ||||||
| Trade payables | $ | 3,508 | $ | 5,957 | ||
| Accrued expenses and other current liabilities | 47,772 | 53,414 | ||||
| Deferred revenues | 110,701 | 108,097 | ||||
| Total current liabilities | 161,981 | 167,468 | ||||
| Long-term liabilities: | ||||||
| Deferred revenues | 894 | 1,613 | ||||
| Other long-term liabilities | 12,384 | 10,038 | ||||
| Operating lease liabilities | 8,222 | 3,833 | ||||
| Total long-term liabilities | 21,500 | 15,484 | ||||
| Total liabilities | 183,481 | 182,952 | ||||
| Redeemable non-controlling interest | 10,429 | 8,080 | ||||
| Shareholders’ equity: | ||||||
| Share capital and additional paid-in capital | 748,801 | 688,636 | ||||
| Other comprehensive income (loss) | 478 | (1,817 | ) | |||
| Accumulated deficit | (489,132 | ) | (432,645 | ) | ||
| Total shareholders’ equity | 260,147 | 254,174 | ||||
| Total Liabilities, redeemable non-controlling interest and shareholders’ equity | $ | 454,057 | $ | 445,206 | ||
| Condensed Consolidated Statements of Cash Flow | ||||||||||||
| (in thousands; unaudited) | ||||||||||||
| Three months ended | Year ended | |||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||
| Cash flows from operating activities: | ||||||||||||
| Net loss | $ | (9,747 | ) | $ | (21,328 | ) | $ | (56,753 | ) | $ | (108,350 | ) |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||||||
| Share-based compensation | 13,498 | 11,996 | 55,457 | 50,104 | ||||||||
| Depreciation, amortization and impairment | 1,574 | 1,215 | 6,157 | 7,878 | ||||||||
| Operating lease right-of-use assets and liabilities, net | 159 | (159 | ) | (1,318 | ) | (551 | ) | |||||
| Finance (income) expense | 1,572 | (1,226 | ) | 2,125 | (1,758 | ) | ||||||
| Amortization of premium and accretion of discount on marketable securities, net | (737 | ) | (370 | ) | (2,245 | ) | (370 | ) | ||||
| Decrease (increase) in trade receivables, net | (2,252 | ) | (10,001 | ) | 4,530 | (7,417 | ) | |||||
| Decrease (increase) in prepaid expenses and other current and non-current assets | 344 | 2,099 | (1,459 | ) | 1,390 | |||||||
| Decrease (increase) in deferred contract acquisition costs | 1,222 | (6,467 | ) | 9,337 | (10,272 | ) | ||||||
| Increase (decrease) in trade payables | (380 | ) | 1,433 | (2,449 | ) | (354 | ) | |||||
| Increase (decrease) in accrued expenses and other current liabilities | 7,327 | 7,822 | (2,877 | ) | (3,178 | ) | ||||||
| Increase (decrease) in deferred revenues | (2,844 | ) | 5,051 | 2,429 | 22,924 | |||||||
| Increase (decrease) in other long-term liabilities | (580 | ) | 1,136 | 2,346 | 3,146 | |||||||
| Net cash provided by (used in) operating activities | 9,156 | (8,799 | ) | 15,280 | (46,808 | ) | ||||||
| Cash flows from investing activities: | ||||||||||||
| Purchase of property and equipment | (29 | ) | (194 | ) | (540 | ) | (2,867 | ) | ||||
| Investment in short-term deposits | (28,000 | ) | (30,000 | ) | (28,000 | ) | (170,500 | ) | ||||
| Proceeds from short-term deposits | 30,000 | 20,000 | 123,500 | 112,257 | ||||||||
| Investment in marketable securities | (32,323 | ) | (84,881 | ) | (75,653 | ) | (84,881 | ) | ||||
| Proceeds from maturity of marketable securities | 4,593 | - | 46,057 | - | ||||||||
| Proceeds from restricted deposits | - | - | - | 295 | ||||||||
| Capitalization of software development costs | (772 | ) | (1,196 | ) | (3,255 | ) | (4,260 | ) | ||||
| Net cash provided by (used in) investing activities | (26,531 | ) | (96,271 | ) | 62,109 | (149,956 | ) | |||||
| Cash flows from financing activities: | ||||||||||||
| Proceeds from exercise of options | 368 | 2,489 | 1,864 | 5,074 | ||||||||
| Proceeds from employees share purchase plan | 960 | 1,494 | 4,102 | 9,717 | ||||||||
| Net cash provided by financing activities | 1,328 | 3,983 | 5,966 | 14,791 | ||||||||
| Effect of foreign currency exchange rate changes on cash, cash equivalents, and restricted cash | 770 | 295 | (560 | ) | (850 | ) | ||||||
| Increase (decrease) in cash, cash equivalents and restricted cash | (15,277 | ) | (100,792 | ) | 82,795 | (182,823 | ) | |||||
| Cash, cash equivalents and restricted cash - Beginning of period | 192,500 | 195,220 | 94,428 | 277,251 | ||||||||
| Cash, cash equivalents and restricted cash - End of period | $ | 177,223 | $ | 94,428 | $ | 177,223 | $ | 94,428 | ||||
| Reconciliation from GAAP to Non-GAAP Results | |||||||||||||
| (in thousands, except share and per share data; unaudited) | |||||||||||||
| Three months ended | Year ended | ||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||
| Reconciliation of gross profit and gross margin | |||||||||||||
| GAAP gross profit | $ | 57,904 | $ | 52,414 | $ | 222,581 | $ | 191,122 | |||||
| Plus: Share-based compensation expense | 529 | 1,010 | 2,590 | 3,896 | |||||||||
| Plus: Amortization of acquired intangibles | 68 | 68 | 272 | 488 | |||||||||
| Plus: Restructuring expense | - | - | 263 | - | |||||||||
| Non-GAAP gross profit | $ | 58,501 | $ | 53,492 | $ | 225,706 | $ | 195,506 | |||||
| GAAP gross margin | 85 | % | 81 | % | 83 | % | 78 | % | |||||
| Non-GAAP gross margin | 86 | % | 82 | % | 85 | % | 80 | % | |||||
| Reconciliation of operating expenses | |||||||||||||
| GAAP research and development | $ | 13,364 | $ | 13,964 | $ | 55,107 | $ | 59,468 | |||||
| Less: Share-based compensation expenses | (3,093 | ) | (1,889 | ) | (11,041 | ) | (7,285 | ) | |||||
| Less: Restructuring expense | - | - | (86 | ) | - | ||||||||
| Non-GAAP research and development | $ | 10,271 | $ | 12,075 | $ | 43,980 | $ | 52,183 | |||||
| GAAP sales and marketing | $ | 38,337 | $ | 45,314 | $ | 161,372 | $ | 176,307 | |||||
| Less: Share-based compensation expenses | (4,538 | ) | (5,191 | ) | (17,671 | ) | (19,126 | ) | |||||
| Less: Restructuring expense | - | - | (964 | ) | - | ||||||||
| Non-GAAP sales and marketing | $ | 33,799 | $ | 40,123 | $ | 142,737 | $ | 157,181 | |||||
| GAAP general and administrative | $ | 17,897 | $ | 15,687 | $ | 70,983 | $ | 65,188 | |||||
| Less: Share-based compensation expenses | (5,338 | ) | (3,906 | ) | (24,155 | ) | (19,797 | ) | |||||
| Less: impairment of acquired intangibles | - | - | - | (979 | ) | ||||||||
| Less: Restructuring expense | - | - | (160 | ) | - | ||||||||
| Less: Legal settlement expense | (2,950 | ) | - | (2,950 | ) | - | |||||||
| Non-GAAP general and administrative | $ | 9,609 | $ | 11,781 | $ | 43,718 | $ | 44,412 | |||||
| Reconciliation of operating income (loss) and operating margin | |||||||||||||
| GAAP operating loss | $ | (11,694 | ) | $ | (22,551 | ) | $ | (64,881 | ) | $ | (109,841 | ) | |
| Plus: Share-based compensation expense | 13,498 | 11,996 | 55,457 | 50,104 | |||||||||
| Plus: Amortization and impairment of acquired intangibles | 68 | 68 | 272 | 1,467 | |||||||||
| Plus: Restructuring expense | - | - | 1,473 | - | |||||||||
| Plus: Legal settlement expense | 2,950 | - | 2,950 | - | |||||||||
| Non-GAAP operating income (loss) | $ | 4,822 | $ | (10,487 | ) | $ | (4,729 | ) | $ | (58,270 | ) | ||
| GAAP operating margin | (17 | )% | (35 | )% | (24 | )% | (45 | )% | |||||
| Non-GAAP operating margin | 7 | % | (16 | )% | (2 | )% | (24 | )% | |||||
| Reconciliation of net loss | |||||||||||||
| GAAP net loss attributable to | $ | (10,647 | ) | $ | (18,615 | ) | $ | (59,136 | ) | $ | (92,628 | ) | |
| Plus: Share-based compensation expense | 13,498 | 11,996 | 55,457 | 50,104 | |||||||||
| Plus: Amortization and impairment of acquired intangibles | 68 | 68 | 272 | 1,467 | |||||||||
| Plus: Restructuring expense | - | - | 1,473 | - | |||||||||
| Plus: Legal settlement expense | 2,950 | - | 2,950 | - | |||||||||
| Plus: Adjustment attributable to non-controlling interest | 969 | (2,337 | ) | 2,649 | (14,979 | ) | |||||||
| Non-GAAP net income (loss) attributable to | $ | 6,838 | $ | (8,888 | ) | $ | 3,665 | $ | (56,036 | ) | |||
| Non-GAAP net income (loss) per share attributable to | |||||||||||||
| Basic | $ | 0.08 | $ | (0.10 | ) | $ | 0.04 | $ | (0.66 | ) | |||
| Diluted | $ | 0.07 | $ | (0.10 | ) | $ | 0.04 | $ | (0.66 | ) | |||
| Shares used in non-GAAP per share calculations: | |||||||||||||
| Non-GAAP weighted-average shares used to compute net income (loss) per share | |||||||||||||
| Basic | 90,344,252 | 86,235,574 | 88,912,397 | 85,116,424 | |||||||||
| Diluted | 94,240,151 | 86,235,574 | 92,575,804 | 85,116,424 | |||||||||
| Reconciliation of GAAP Cash Flow from Operating Activities to Free Cash Flow | |||||||||||||
| (in thousands; unaudited) | |||||||||||||
| Three months ended | Year ended | ||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||
| Net cash provided by (used in) operating activities | $ | 9,156 | $ | (8,799 | ) | $ | 15,280 | $ | (46,808 | ) | |||
| Less: Purchases of property and equipment | (29 | ) | (194 | ) | (540 | ) | (2,867 | ) | |||||
| Less: Capitalized software development costs | (772 | ) | (1,196 | ) | (3,255 | ) | (4,260 | ) | |||||
| Free Cash Flow | $ | 8,355 | $ | (10,189 | ) | $ | 11,485 | $ | (53,935 | ) | |||
2024 GlobeNewswire, Inc., source
