Upwork Inc. (Nasdaq: UPWK), the world’s largest work marketplace
that connects businesses with independent talent, as measured by
gross services volume (“GSV”), today announced its second quarter
2021 financial results.
“The second quarter marks our fourth consecutive
quarter of accelerating year-over-year growth in GSV and revenue,”
said Hayden Brown, President and Chief Executive Officer of Upwork.
“We continue to execute strongly against our plan and operate at
record levels as businesses of every size across the globe continue
to embrace freelancers. At the same time, we continue on our path
of innovation this quarter with the launch of Talent Scout, which
offers businesses hands-on recruiting assistance without the
expensive price tag of a traditional staffing agency and follows
the successful introduction of Project Catalog earlier this year.
We will continue to innovate, scale, and increase awareness of our
work marketplace as we transform from a single product company to a
multi-product company to capture an even larger part of our $1.3
trillion market opportunity.”
Second Quarter 2021 Financial
Results
- GSV increased by
50% year-over-year to $875.8 million;
- Revenue grew 42%
year-over-year to $124.2 million;
- Marketplace
revenue grew 46% year-over-year to $114.5 million;
- Marketplace take
rate was 13.2%, down from 13.7% a year ago;
- Gross margin
increased two percentage points year-over-year to 73%;
- Net loss was $16.5
million, or $(0.13) per basic share, compared to a net loss of
$11.0 million, or $(0.09) per basic share, in the second quarter of
2020;
- Non-GAAP net
income was $4.6 million, or $0.03 per diluted share,
compared to non-GAAP net loss of $3.0 million, or $(0.03) per basic
share, in the second quarter of 2020; and
- Adjusted EBITDA, a
non-GAAP financial measure, was $7.3 million compared to a loss of
$1.2 million in the second quarter of 2020.
Note: Reported figures are rounded; unless
otherwise noted, comparisons of the second quarter of 2021 are to
the second quarter of 2020. All financial measures are GAAP unless
cited as non-GAAP. Certain operating metrics used here, including
“GSV” and “marketplace take rate,” are defined in our Annual Report
on Form 10-K for the year ended December 31, 2020 and will also be
set forth in our most recently filed Quarterly Report on Form 10-Q
when filed.
A reconciliation of GAAP to non-GAAP financial
measures has been provided at the end of this press release. An
explanation of these measures is also included below under the
heading “Non-GAAP Financial Measures.”
GuidanceThe guidance we are
providing today factors in the expected impacts of the COVID-19
pandemic that are available to us as of today.
As of July 29, 2021, Upwork is providing
the following guidance for its third quarter and full year
2021:
For the third quarter of 2021, Upwork expects to
report:
- Revenue in the
range of $125 million to $127 million
- Adjusted EBITDA in the range of $4
million to $5 million
- Diluted weighted-average shares
outstanding in the range of 134 million to 136 million
- Non-GAAP diluted EPS in the range
of $0.01 to $0.03
For the full year 2021, Upwork expects to
report:
- Revenue in the
range of $490 million to $494 million
- Adjusted EBITDA in the range of $16
million to $20 million
- Diluted weighted-average shares
outstanding in the range of 133 million to 137 million
- Non-GAAP diluted EPS in the range
of $0.05 to $0.07
We have not reconciled our adjusted EBITDA
guidance to GAAP net income (loss) or non-GAAP diluted EPS to GAAP
diluted EPS because certain items that impact GAAP net income
(loss) and GAAP diluted EPS are uncertain or out of our control and
cannot be reasonably predicted. In particular, stock-based
compensation expense is impacted by the future fair market value of
our common stock and other factors, all of which are difficult to
predict, subject to frequent change, or not within our control. The
actual amount of these expenses during 2021 will have a significant
impact on our future GAAP financial results. Accordingly, a
reconciliation of adjusted EBITDA to net income (loss) and non-GAAP
diluted EPS to GAAP diluted EPS is not available without
unreasonable effort.
Second Quarter 2021 Financial Results
Conference Call and Webcast
Upwork will host a conference call today at 2
p.m. Pacific Time/5 p.m. Eastern Time to discuss the company’s
second quarter 2021 financial results. An audio webcast archive
will be available following the live event for approximately one
year at investors.upwork.com. The prepared remarks corresponding to
the information reviewed on today’s conference call will also be
available on our Investor Relations website, once the call has
concluded.
We use our investor relations website
(investors.upwork.com), our Twitter handle (twitter.com/Upwork) and
Hayden Brown’s Twitter handle (twitter.com/hydnbrwn) and LinkedIn
profile (linkedin.com/in/haydenlbrown) as a means of disseminating
or providing notification of, among other things, news or
announcements regarding our business or financial performance,
investor events, press releases and earnings releases and as a
means of disclosing material non-public information and for
complying with our disclosure obligations under Regulation FD. The
content of our websites and information that we may post on or
provide to online and social media channels, including those
mentioned above, and information that can be accessed through our
websites or these online and social media channels are not
incorporated by reference into this press release or in any report
or document we file with the SEC, and any references to our
websites or these online and social media channels are intended to
be inactive textual references only.
Safe Harbor Statement
This press release includes forward-looking
statements, which are statements other than statements of
historical facts, and statements in the future tense. These
statements include, but are not limited to, statements regarding
the future performance of Upwork and its market opportunity,
including expected financial results for the third quarter and full
year of 2021, expectations regarding the impact of the COVID-19
pandemic on our business and industry, and expectations for
capturing market share and regarding the changing landscape of
work, as well as statements regarding our planned investments to
support growth. Accordingly, actual results could differ materially
or such uncertainties could cause adverse effects on our results.
Forward-looking statements are based upon various estimates and
assumptions, as well as information known to Upwork as of the date
of this press release, and are subject to risks and uncertainties,
including but not limited to: the impact and duration of the
COVID-19 pandemic on our business and global economic conditions;
the impact, severity and duration of safety measures put in place
to mitigate the impact of the COVID-19 pandemic; our ability to
attract and retain a community of freelancers and clients; our
limited operating history under our current business strategy and
pricing model; our focus on the long-term and our investments in
sustainable, profitable growth; our ability to develop and release
new products and services, and develop and release successful
enhancements, features, and modifications to our existing products
and services; the impact of new and existing laws and regulations;
our ability to generate revenue from our marketplace offerings and
the effects of fluctuations in our level of client spend retention;
our ability to develop, maintain, and enhance our brand and
reputation cost-effectively; competition; challenges to contractor
classification or employment status of freelancers on our work
marketplace; the possibility that the market for freelancers and
the services they offer will develop more slowly than we expect;
user circumvention of our work marketplace; our ability to sell to
large enterprise, global account, and mid-market clients; the
success of our investments in our enterprise sales organization and
our related marketing efforts, and expectations for the ability for
enterprise sales to drive incremental revenue and GSV growth;
changes in the amount and mix of services facilitated through our
work marketplace from period to period; changes in our level of
investment in sales and marketing, research and development, and
general and administrative expenses, and our hiring plans for sales
personnel; the market for information technology; future changes to
our pricing model; payment and fraud risks; security breaches;
privacy; litigation and related costs; changes in management; and
other general market, political, economic, and business conditions.
Actual results could differ materially from those predicted or
implied, and reported results should not be considered as an
indication of future performance. Additionally, these
forward-looking statements, particularly our guidance, involve
risks, uncertainties and assumptions, including those related to
the impacts of the COVID-19 pandemic on our clients’ spending
decisions. Significant variation from the assumptions underlying
our forward-looking statements could cause our actual results to
vary, and the impact could be significant.
Additional risks and uncertainties that could
affect our financial results are included under the caption “Risk
Factors” and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” in our Annual Report on Form
10-K filed with the SEC on February 24, 2021 and in our Quarterly
Report on Form 10-Q filed with the SEC on May 4, 2021 and our other
SEC filings, which are available on the Investor Relations page of
our website at investors.upwork.com and on the SEC website at
www.sec.gov. Additional information will also be set forth in our
Quarterly Report on Form 10-Q for the three months ended
June 30, 2021 when filed. All forward-looking statements
contained herein are based on information available to us as of the
date hereof, and we do not assume any obligation to update these
statements as a result of new information or future events.
Undue reliance should not be placed on the
forward-looking statements in this press release. These statements
are based on information available to Upwork on the date hereof,
and Upwork assumes no obligation to update such statements.
Non-GAAP Financial Measures
To supplement our condensed consolidated
financial statements, which are prepared in accordance with GAAP,
we present non-GAAP cost of revenue (and as a percentage of
revenue), non-GAAP gross profit (and as a percentage of revenue),
non-GAAP operating expenses (total and each line item, and total
and each non-GAAP operating expense item as a percentage of
revenue), non-GAAP income (loss) from operations (and as a
percentage of revenue), non-GAAP net income (loss) (and as a
percentage of revenue and on a per basic and diluted share basis),
and adjusted EBITDA in this press release. Our use of non-GAAP
financial measures has limitations as an analytical tool, and these
measures should not be considered in isolation or as a substitute
for analysis of financial results as reported under GAAP.
We use these non-GAAP financial measures in
conjunction with financial measures prepared in accordance with
GAAP for planning purposes, including in the preparation of our
annual operating budget, as a measure of our core operating results
and the effectiveness of our business strategy, and in evaluating
our financial performance. These measures provide consistency and
comparability with past financial performance, facilitate
period-to-period comparisons of core operating results, and also
facilitate comparisons with other peer companies, many of which use
similar non-GAAP financial measures to supplement their GAAP
results. In addition, adjusted EBITDA is widely used by investors
and securities analysts to measure a company’s operating
performance. We exclude the following items from one or more of our
non-GAAP financial measures: stock-based compensation expense
(non-cash expense calculated by companies using a variety of
valuation methodologies and subjective assumptions), depreciation
and amortization (non-cash expense), interest expense, other
(income) expense, net, income tax (benefit) provision, and, if
applicable, other non-cash transactions. For the three and six
months ended June 30, 2021, other non-cash transactions included an
impairment charge of $7.4 million relating to certain of our
operating lease assets and related property and equipment.
Investors are cautioned that there are material
limitations associated with the use of non-GAAP financial measures
as an analytical tool. In particular, (1) stock-based compensation
expense has recently been, and will continue to be for the
foreseeable future, a significant recurring expense for our
business and an important part of our compensation strategy, (2)
although depreciation and amortization expense are non-cash
charges, the assets subject to depreciation and amortization may
have to be replaced in the future, and adjusted EBITDA does not
reflect cash capital expenditure requirements for such replacements
or for new capital expenditure requirements, and (3) adjusted
EBITDA does not reflect: (a) changes in, or cash requirements for,
our working capital needs; (b) interest expense, or the cash
requirements necessary to service interest or principal payments on
our debt, which reduces cash available to us; (c) tax payments that
may represent a reduction in cash available to us; or (d) expense
from our common stock warrant issued to the Tides Foundation, which
is recurring and will be reflected in our financial results for the
foreseeable future. The non-GAAP measures we use may be different
from non-GAAP financial measures used by other companies, limiting
their usefulness for comparison purposes. We compensate for these
limitations by providing specific information regarding the GAAP
items excluded from these non-GAAP financial measures. A
reconciliation of these non-GAAP measures has been provided in the
financial statement tables included in this press release and
investors are encouraged to review the reconciliation.
About Upwork
Upwork is the world’s largest work marketplace
that connects businesses with independent talent, as measured by
GSV. We serve everyone from one-person startups to 30% of the
Fortune 100 with a powerful, trust-driven platform that enables
companies and freelancers to work together in new ways that unlock
their potential. Our talent community earned over $2.3 billion on
Upwork in 2020 across more than 10,000 skills, including website
& app development, creative & design, customer support,
finance & accounting, consulting, and operations. Learn more at
www.upwork.com and join us on LinkedIn, Twitter, Facebook, and
Instagram.
Upwork is a registered trademark of Upwork Inc.
All other product and brand names may be trademarks or registered
trademarks of their respective owners.
Contact:Evan BarbosaInvestor
RelationsInvestor@Upwork.com
UPWORK INC.CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS(In
thousands, except for per share
data)(Unaudited)
|
Three Months Ended June
30, |
|
Six Months Ended June
30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Revenue |
|
|
|
|
|
|
|
Marketplace |
$ |
114,460 |
|
|
|
$ |
78,464 |
|
|
|
$ |
219,130 |
|
|
|
$ |
153,246 |
|
|
Managed services |
9,721 |
|
|
|
9,067 |
|
|
|
18,670 |
|
|
|
17,481 |
|
|
Total revenue |
124,181 |
|
|
|
87,531 |
|
|
|
237,800 |
|
|
|
170,727 |
|
|
Cost of revenue |
33,083 |
|
|
|
25,408 |
|
|
|
63,524 |
|
|
|
48,893 |
|
|
Gross profit |
91,098 |
|
|
|
62,123 |
|
|
|
174,276 |
|
|
|
121,834 |
|
|
Operating expenses |
|
|
|
|
|
|
|
Research and development |
28,124 |
|
|
|
20,547 |
|
|
|
54,737 |
|
|
|
39,895 |
|
|
Sales and marketing |
45,817 |
|
|
|
34,440 |
|
|
|
85,421 |
|
|
|
65,118 |
|
|
General and administrative |
32,355 |
|
|
|
17,102 |
|
|
|
55,886 |
|
|
|
34,926 |
|
|
Provision for transaction losses |
1,197 |
|
|
|
1,018 |
|
|
|
2,324 |
|
|
|
1,930 |
|
|
Total operating expenses |
107,493 |
|
|
|
73,107 |
|
|
|
198,368 |
|
|
|
141,869 |
|
|
Loss from operations |
(16,395 |
) |
|
|
(10,984 |
) |
|
|
(24,092 |
) |
|
|
(20,035 |
) |
|
Interest expense |
110 |
|
|
|
258 |
|
|
|
309 |
|
|
|
488 |
|
|
Other (income) expense, net |
17 |
|
|
|
(248 |
) |
|
|
(61 |
) |
|
|
483 |
|
|
Loss before income taxes |
(16,522 |
) |
|
|
(10,994 |
) |
|
|
(24,340 |
) |
|
|
(21,006 |
) |
|
Income tax provision |
(16 |
) |
|
|
(30 |
) |
|
|
(33 |
) |
|
|
(39 |
) |
|
Net loss |
$ |
(16,538 |
) |
|
|
$ |
(11,024 |
) |
|
|
$ |
(24,373 |
) |
|
|
$ |
(21,045 |
) |
|
|
|
|
|
|
|
|
|
Net loss per share, basic and
diluted |
$ |
(0.13 |
) |
|
|
$ |
(0.09 |
) |
|
|
$ |
(0.19 |
) |
|
|
$ |
(0.18 |
) |
|
Weighted-average shares used
to compute net loss per share, basic and diluted |
126,742 |
|
|
|
116,524 |
|
|
|
126,011 |
|
|
|
115,321 |
|
|
UPWORK INC.CONDENSED
CONSOLIDATED BALANCE SHEETS(In
thousands)(Unaudited)
|
June 30, 2021 |
|
December 31, 2020 |
ASSETS |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
131,448 |
|
|
|
$ |
94,081 |
|
|
Marketable securities |
40,990 |
|
|
|
75,570 |
|
|
Funds held in escrow, including funds in transit |
165,082 |
|
|
|
135,042 |
|
|
Trade and client receivables, net |
62,232 |
|
|
|
47,018 |
|
|
Prepaid expenses and other current assets |
12,526 |
|
|
|
9,090 |
|
|
Total current assets |
412,278 |
|
|
|
360,801 |
|
|
Property and equipment,
net |
23,683 |
|
|
|
28,139 |
|
|
Goodwill |
118,219 |
|
|
|
118,219 |
|
|
Intangible assets, net |
— |
|
|
|
667 |
|
|
Operating lease asset |
13,674 |
|
|
|
19,729 |
|
|
Other assets, noncurrent |
1,406 |
|
|
|
1,672 |
|
|
Total
assets |
$ |
569,260 |
|
|
|
$ |
529,227 |
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
$ |
8,625 |
|
|
|
$ |
6,455 |
|
|
Escrow funds payable |
165,082 |
|
|
|
135,042 |
|
|
Debt, current |
6,344 |
|
|
|
7,581 |
|
|
Accrued expenses and other current liabilities |
33,211 |
|
|
|
32,868 |
|
|
Deferred revenue |
19,164 |
|
|
|
16,801 |
|
|
Total current liabilities |
232,426 |
|
|
|
198,747 |
|
|
Debt, noncurrent |
633 |
|
|
|
3,142 |
|
|
Operating lease liability,
noncurrent |
18,757 |
|
|
|
20,506 |
|
|
Other liabilities,
noncurrent |
8,916 |
|
|
|
7,522 |
|
|
Total liabilities |
260,732 |
|
|
|
229,917 |
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
Common stock |
13 |
|
|
|
12 |
|
|
Additional paid-in capital |
527,712 |
|
|
|
494,122 |
|
|
Accumulated deficit |
(219,197 |
) |
|
|
(194,824 |
) |
|
Total stockholders’ equity |
308,528 |
|
|
|
299,310 |
|
|
Total liabilities and
stockholders’ equity |
$ |
569,260 |
|
|
|
$ |
529,227 |
|
|
UPWORK INC.CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS(In
thousands)(Unaudited)
|
Three Months Ended June
30, |
|
Six Months Ended June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
|
|
|
|
Net loss |
$ |
(16,538 |
) |
|
|
$ |
(11,024 |
) |
|
|
$ |
(24,373 |
) |
|
|
$ |
(21,045 |
) |
|
Adjustments to reconcile net
loss to net cash provided by operating activities: |
|
|
|
|
|
|
|
Provision for transaction losses |
1,006 |
|
|
|
839 |
|
|
|
1,907 |
|
|
|
1,606 |
|
|
Depreciation and amortization |
2,554 |
|
|
|
2,478 |
|
|
|
5,748 |
|
|
|
4,786 |
|
|
Amortization of debt issuance costs |
20 |
|
|
|
13 |
|
|
|
39 |
|
|
|
26 |
|
|
Amortization of premium (discount) on purchases of marketable
securities, net |
12 |
|
|
|
(83 |
) |
|
|
22 |
|
|
|
(257 |
) |
|
Amortization of operating lease asset |
863 |
|
|
|
976 |
|
|
|
1,774 |
|
|
|
1,945 |
|
|
Tides Foundation common stock warrant expense |
187 |
|
|
|
188 |
|
|
|
375 |
|
|
|
376 |
|
|
Stock-based compensation expense |
13,534 |
|
|
|
7,134 |
|
|
|
24,760 |
|
|
|
12,671 |
|
|
Impairment expense |
7,389 |
|
|
|
— |
|
|
|
7,389 |
|
|
|
— |
|
|
Changes in operating assets
and liabilities: |
|
|
|
|
|
|
|
Trade and client receivables |
(11,251 |
) |
|
|
1,118 |
|
|
|
(16,835 |
) |
|
|
(4,773 |
) |
|
Prepaid expenses and other assets |
(1,329 |
) |
|
|
(504 |
) |
|
|
(2,871 |
) |
|
|
(968 |
) |
|
Operating lease liability |
(460 |
) |
|
|
(466 |
) |
|
|
(861 |
) |
|
|
(925 |
) |
|
Accounts payable |
(3,372 |
) |
|
|
3,409 |
|
|
|
2,168 |
|
|
|
4,403 |
|
|
Accrued expenses and other liabilities |
6,018 |
|
|
|
3,351 |
|
|
|
(273 |
) |
|
|
7,232 |
|
|
Deferred revenue |
1,911 |
|
|
|
935 |
|
|
|
3,451 |
|
|
|
1,585 |
|
|
Net cash provided by operating activities |
544 |
|
|
|
8,364 |
|
|
|
2,420 |
|
|
|
6,662 |
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
|
|
|
|
Purchases of marketable securities |
(8,991 |
) |
|
|
(20,959 |
) |
|
|
(29,967 |
) |
|
|
(47,748 |
) |
|
Proceeds from maturities of marketable securities |
33,500 |
|
|
|
31,000 |
|
|
|
64,500 |
|
|
|
64,000 |
|
|
Purchases of property and equipment |
(264 |
) |
|
|
(4,339 |
) |
|
|
(334 |
) |
|
|
(5,627 |
) |
|
Internal-use software and platform development costs |
(1,283 |
) |
|
|
(1,560 |
) |
|
|
(3,581 |
) |
|
|
(3,559 |
) |
|
Net cash provided by investing activities |
22,962 |
|
|
|
4,142 |
|
|
|
30,618 |
|
|
|
7,066 |
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
|
|
|
|
Changes in escrow funds payable |
3,680 |
|
|
|
5,998 |
|
|
|
30,040 |
|
|
|
20,832 |
|
|
Proceeds from exercises of stock options |
3,130 |
|
|
|
12,845 |
|
|
|
5,727 |
|
|
|
16,010 |
|
|
Proceeds from borrowings on debt |
— |
|
|
|
3,000 |
|
|
|
— |
|
|
|
18,000 |
|
|
Repayment of debt |
(1,893 |
) |
|
|
(19,893 |
) |
|
|
(3,786 |
) |
|
|
(21,786 |
) |
|
Proceeds from employee stock purchase plan |
2,688 |
|
|
|
2,661 |
|
|
|
2,688 |
|
|
|
2,661 |
|
|
Net cash provided by financing activities |
7,605 |
|
|
|
4,611 |
|
|
|
34,669 |
|
|
|
35,717 |
|
|
NET CHANGE IN CASH, CASH
EQUIVALENTS, AND RESTRICTED CASH |
31,111 |
|
|
|
17,117 |
|
|
|
67,707 |
|
|
|
49,445 |
|
|
Cash, cash equivalents, and
restricted cash—beginning of period |
269,059 |
|
|
|
191,931 |
|
|
|
232,463 |
|
|
|
159,603 |
|
|
Cash, cash equivalents, and
restricted cash—end of period |
$ |
300,170 |
|
|
|
$ |
209,048 |
|
|
|
$ |
300,170 |
|
|
|
$ |
209,048 |
|
|
The following table reconciles cash, cash
equivalents, and restricted cash as reported in the condensed
consolidated balance sheets to the total of the same amounts shown
in the condensed consolidated statements of cash flows as of the
following (in thousands):
|
June 30, 2021 |
|
December 31, 2020 |
Cash and cash equivalents |
$ |
131,448 |
|
|
$ |
94,081 |
|
Restricted cash |
3,640 |
|
|
3,340 |
|
Funds held in escrow,
including funds in transit |
165,082 |
|
|
135,042 |
|
Total cash, cash equivalents,
and restricted cash as shown in the condensed consolidated
statement of cash flows |
$ |
300,170 |
|
|
$ |
232,463 |
|
UPWORK INC.COST OF
REVENUE AND GROSS MARGIN(In thousands, except
percentages)(Unaudited)
|
Three Months Ended June
30, |
|
Six Months Ended June
30, |
|
2021 |
|
2020 |
|
Change |
|
2021 |
|
2020 |
|
Change |
Cost of revenue |
$ |
33,083 |
|
|
$ |
25,408 |
|
|
$ |
7,675 |
|
|
30 |
% |
|
$ |
63,524 |
|
|
$ |
48,893 |
|
|
$ |
14,631 |
|
|
30 |
% |
Components of cost of
revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of freelancer services to deliver managed services |
7,796 |
|
|
7,272 |
|
|
524 |
|
|
7 |
% |
|
15,003 |
|
|
14,234 |
|
|
769 |
|
|
5 |
% |
Other components of cost of revenue |
25,287 |
|
|
18,136 |
|
|
7,151 |
|
|
39 |
% |
|
48,521 |
|
|
34,659 |
|
|
13,862 |
|
|
40 |
% |
Total gross margin |
73 |
% |
|
71 |
% |
|
|
|
|
|
73 |
% |
|
71 |
% |
|
|
|
|
UPWORK
INC.RECONCILIATION OF GAAP TO NON-GAAP
RESULTS(In thousands, except for percentages and
per share data)(Unaudited)
|
Three Months Ended June
30, |
|
Six Months Ended June
30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
GAAP Net Loss |
$ |
(16,538 |
) |
|
|
$ |
(11,024 |
) |
|
|
$ |
(24,373 |
) |
|
|
$ |
(21,045 |
) |
|
Add back (deduct): |
|
|
|
|
|
|
|
Stock-based compensation expense |
13,534 |
|
|
|
7,134 |
|
|
|
24,760 |
|
|
|
12,671 |
|
|
Depreciation and amortization |
2,554 |
|
|
|
2,478 |
|
|
|
5,748 |
|
|
|
4,786 |
|
|
Interest expense |
110 |
|
|
|
258 |
|
|
|
309 |
|
|
|
488 |
|
|
Other (income) expense, net |
17 |
|
|
|
(248 |
) |
|
|
(61 |
) |
|
|
483 |
|
|
Income tax provision |
16 |
|
|
|
30 |
|
|
|
33 |
|
|
|
39 |
|
|
Tides Foundation common stock warrant expense |
187 |
|
|
|
188 |
|
|
|
375 |
|
|
|
376 |
|
|
Impairment expense |
7,389 |
|
|
|
— |
|
|
|
7,389 |
|
|
|
— |
|
|
Non-GAAP Adjusted EBITDA |
$ |
7,269 |
|
|
|
$ |
(1,184 |
) |
|
|
$ |
14,180 |
|
|
|
$ |
(2,202 |
) |
|
|
|
|
|
|
|
|
|
Cost of Revenue
Reconciliation: |
|
|
|
|
|
|
|
Cost of revenue, GAAP |
$ |
33,083 |
|
|
|
$ |
25,408 |
|
|
|
$ |
63,524 |
|
|
|
$ |
48,893 |
|
|
Stock-based compensation |
(179 |
) |
|
|
(202 |
) |
|
|
(380 |
) |
|
|
(376 |
) |
|
Cost of revenue, Non-GAAP |
$ |
32,904 |
|
|
|
$ |
25,206 |
|
|
|
$ |
63,144 |
|
|
|
$ |
48,517 |
|
|
% of revenue, GAAP |
27 |
|
% |
|
29 |
|
% |
|
27 |
|
% |
|
29 |
|
% |
% of revenue, Non-GAAP |
26 |
|
% |
|
29 |
|
% |
|
27 |
|
% |
|
28 |
|
% |
|
|
|
|
|
|
|
|
Gross Profit
Reconciliation: |
|
|
|
|
|
|
|
Gross profit, GAAP |
$ |
91,098 |
|
|
|
$ |
62,123 |
|
|
|
$ |
174,276 |
|
|
|
$ |
121,834 |
|
|
Stock-based compensation |
179 |
|
|
|
202 |
|
|
|
380 |
|
|
|
376 |
|
|
Gross profit, Non-GAAP |
$ |
91,277 |
|
|
|
$ |
62,325 |
|
|
|
$ |
174,656 |
|
|
|
$ |
122,210 |
|
|
% of revenue, GAAP |
73 |
|
% |
|
71 |
|
% |
|
73 |
|
% |
|
71 |
|
% |
% of revenue, Non-GAAP |
74 |
|
% |
|
71 |
|
% |
|
73 |
|
% |
|
72 |
|
% |
|
|
|
|
|
|
|
|
Operating Expenses
Reconciliation: |
|
|
|
|
|
|
|
Research and development,
GAAP |
$ |
28,124 |
|
|
|
$ |
20,547 |
|
|
|
$ |
54,737 |
|
|
|
$ |
39,895 |
|
|
Stock-based compensation |
(3,988 |
) |
|
|
(2,769 |
) |
|
|
(7,285 |
) |
|
|
(4,719 |
) |
|
Research and development, Non-GAAP |
$ |
24,136 |
|
|
|
$ |
17,778 |
|
|
|
$ |
47,452 |
|
|
|
$ |
35,176 |
|
|
% of revenue, GAAP |
23 |
|
% |
|
23 |
|
% |
|
23 |
|
% |
|
23 |
|
% |
% of revenue, Non-GAAP |
19 |
|
% |
|
20 |
|
% |
|
20 |
|
% |
|
21 |
|
% |
|
|
|
|
|
|
|
|
Sales and marketing, GAAP |
$ |
45,817 |
|
|
|
$ |
34,440 |
|
|
|
$ |
85,421 |
|
|
|
$ |
65,118 |
|
|
Stock-based compensation |
(1,613 |
) |
|
|
(1,312 |
) |
|
|
(2,891 |
) |
|
|
(2,240 |
) |
|
Sales and marketing, Non-GAAP |
$ |
44,204 |
|
|
|
$ |
33,128 |
|
|
|
$ |
82,530 |
|
|
|
$ |
62,878 |
|
|
% of revenue, GAAP |
37 |
|
% |
|
39 |
|
% |
|
36 |
|
% |
|
38 |
|
% |
% of revenue, Non-GAAP |
36 |
|
% |
|
38 |
|
% |
|
35 |
|
% |
|
37 |
|
% |
|
|
|
|
|
|
|
|
General and administrative,
GAAP |
$ |
32,355 |
|
|
|
$ |
17,102 |
|
|
|
$ |
55,886 |
|
|
|
$ |
34,926 |
|
|
Stock-based compensation |
(7,754 |
) |
|
|
(2,851 |
) |
|
|
(14,204 |
) |
|
|
(5,336 |
) |
|
Amortization of intangible
assets |
— |
|
|
|
(667 |
) |
|
|
(667 |
) |
|
|
(1,334 |
) |
|
Tides Foundation common stock
warrant expense |
(187 |
) |
|
|
(188 |
) |
|
|
(375 |
) |
|
|
(376 |
) |
|
Impairment expense |
(7,389 |
) |
|
|
— |
|
|
|
(7,389 |
) |
|
|
— |
|
|
General and administrative, Non-GAAP |
$ |
17,025 |
|
|
|
$ |
13,396 |
|
|
|
$ |
33,251 |
|
|
|
$ |
27,880 |
|
|
% of revenue, GAAP |
26 |
|
% |
|
20 |
|
% |
|
24 |
|
% |
|
20 |
|
% |
% of revenue, Non-GAAP |
14 |
|
% |
|
15 |
|
% |
|
14 |
|
% |
|
16 |
|
% |
|
|
|
|
|
|
|
|
Loss from Operations
Reconciliation: |
|
|
|
|
|
|
|
Loss from operations,
GAAP |
$ |
(16,395 |
) |
|
|
$ |
(10,984 |
) |
|
|
$ |
(24,092 |
) |
|
|
$ |
(20,035 |
) |
|
Stock-based compensation |
13,534 |
|
|
|
7,134 |
|
|
|
24,760 |
|
|
|
12,671 |
|
|
Amortization of intangible
assets |
— |
|
|
|
667 |
|
|
|
667 |
|
|
|
1,334 |
|
|
Tides Foundation common stock
warrant expense |
187 |
|
|
|
188 |
|
|
|
375 |
|
|
|
376 |
|
|
Impairment expense |
7,389 |
|
|
|
— |
|
|
|
7,389 |
|
|
|
— |
|
|
Income (loss) from operations, Non-GAAP |
$ |
4,715 |
|
|
|
$ |
(2,995 |
) |
|
|
$ |
9,099 |
|
|
|
$ |
(5,654 |
) |
|
% of revenue, GAAP |
-13 |
|
% |
|
-13 |
|
% |
|
-10 |
|
% |
|
-12 |
|
% |
% of revenue, Non-GAAP |
4 |
|
% |
|
-3 |
|
% |
|
4 |
|
% |
|
-3 |
|
% |
|
|
|
|
|
|
|
|
Net Loss
Reconciliation: |
|
|
|
|
|
|
|
Net loss, GAAP |
$ |
(16,538 |
) |
|
|
$ |
(11,024 |
) |
|
|
$ |
(24,373 |
) |
|
|
$ |
(21,045 |
) |
|
Stock-based compensation |
13,534 |
|
|
|
7,134 |
|
|
|
24,760 |
|
|
|
12,671 |
|
|
Amortization of intangible
assets |
— |
|
|
|
667 |
|
|
|
667 |
|
|
|
1,334 |
|
|
Tides Foundation common stock
warrant expense |
187 |
|
|
|
188 |
|
|
|
375 |
|
|
|
376 |
|
|
Impairment expense |
7,389 |
|
|
|
— |
|
|
|
7,389 |
|
|
|
— |
|
|
Net income (loss), Non-GAAP |
$ |
4,572 |
|
|
|
$ |
(3,035 |
) |
|
|
$ |
8,818 |
|
|
|
$ |
(6,664 |
) |
|
% of revenue, GAAP |
-13 |
|
% |
|
-13 |
|
% |
|
-10 |
|
% |
|
-12 |
|
% |
% of revenue, Non-GAAP |
4 |
|
% |
|
-3 |
|
% |
|
4 |
|
% |
|
-4 |
|
% |
|
|
|
|
|
|
|
|
Net Loss per Share
Reconciliation: |
|
|
|
|
|
|
|
Weighted-average
shares outstanding used in computing loss per share, GAAP |
Basic |
126,742 |
|
|
|
116,524 |
|
|
|
126,011 |
|
|
|
115,321 |
|
|
Basic loss per share,
GAAP |
$ |
(0.13 |
) |
|
|
$ |
(0.09 |
) |
|
|
$ |
(0.19 |
) |
|
|
$ |
(0.18 |
) |
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding used in computing income (loss) per share,
Non-GAAP |
Basic |
126,742 |
|
|
|
116,524 |
|
|
|
126,011 |
|
|
|
115,321 |
|
|
Diluted1 |
133,977 |
|
|
|
— |
|
|
|
134,194 |
|
|
|
— |
|
|
Basic income (loss) per share,
Non-GAAP |
$ |
0.04 |
|
|
|
$ |
(0.03 |
) |
|
|
$ |
0.07 |
|
|
|
$ |
(0.06 |
) |
|
Diluted income per share,
Non-GAAP1 |
$ |
0.03 |
|
|
|
$ |
— |
|
|
|
$ |
0.07 |
|
|
|
$ |
— |
|
|
1 Not applicable when in a net loss position.
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