Fourth Quarter Highlighted by Record Revenues
of $93.7 Million
Record
Full Year 2022 Revenues of $339.2
Million, Up 27% YoY
Announces Implementation of
2023 Restructuring and Cost Reduction Program
NEW
YORK, Feb. 15, 2023 /PRNewswire/ -- Kaleyra,
Inc. (NYSE: KLR) (NYSE American: KLR WS) ("Kaleyra" or the
"Company"), an enterprise Communication Platform as a Service
(CPaaS), reported financial results for the fourth quarter and full
year ended December 31,
2022.
Fourth Quarter and Full Year 2022 Highlights
- Record quarterly revenue of $93.7
million ($97.7 million using
Q42021 foreign exchange rates), 93.1% of revenue is from
customers on the platform for a minimum of one year
- Record full year 2022 revenue of $339.2 million ($353.3
million using FY2021 foreign exchange rates), an increase of
26.7% compared to the full year 2021 (32.0% increase using FY2021
foreign exchange rates)
- Full year 2022 gross profit increased 21.9% to
$70.1 million from $57.5 million in the comparable year-ago
period
- Full year adjusted gross profit, a non-GAAP measurement
of operating performance reconciled below, increased 24.9% to
$76.6 million from $61.4 million in the comparable year-ago
period
- Full year 2022 operating expenses of $157.6 million, including an impairment loss on
intangible assets of $49.4
million
- Strong balance sheet with $78.6 million
($82.2 million using foreign
exchange rates as of Q42021) in cash and cash equivalents,
including restricted cash and short-term investments
- Delivered 51.5 billion messages and connected 8.1
billion voice calls in the full year 2022
- Announced implementation of 2023 restructuring and cost
reduction program, so called "Value Creation
Program", aimed to reduce monthly cash payroll costs by more
than 15% in FY2023
- Expanded integration portfolio to include
partnerships with Shopify, Hubspot, CleverTap, Zoho and
WooCommerce
- Selected as a preferred SMS provider for Amazon Pay
India, enhancing end-customer experiences and
satisfaction
- Partnered with Fincons to transform digital collaboration in
banking, integrating Kaleyra Video, its proprietary audio and
video solution, in the mobile application developed for Flowe,
Italy's new-age digital bank, to
improve customer identification and fraud detection processes
- Unveiled a new lineup of chatbots for WhatsApp
business that will allow businesses to create advanced
conversational experiences on the platforms
- Signed strategic partnership with telecom operators in
strategic markets such as PLDT (formerly Philippine Long Distance
Telephone Company) in the
Philippines and Claro in Central
America
Management Commentary
"Our fourth quarter started the
next phase of forward momentum for Kaleyra, with revenue exceeding
the upper end of our guided range as we build on our existing
partnerships, work with new valuable enterprise customer partners,
and gain success by layering in higher margin communication
channels" said Kaleyra Founder and CEO Dario Calogero. "Our relationships with business
partners with their important communications were highlighted by
our 27% year-over-year full year record revenue growth. In
addition, our adjusted gross profit increased by 25% with an
adjusted gross margin of 22.6% year-over-year, further solidifying
our leadership position in enterprise CPaaS. Indeed, The Campaign
Registry, part of our higher gross margin business portfolios,
outperformed by posting significant growth in revenue.
In January 2023, Kaleyra launched
a company-wide "Value Creation Program" aimed at improving the
efficiency and focus on the core elements of the Company's
strategy. This project is expected to deliver results starting in
1Q23 and over the next quarters, with significant cost savings and
cash flow improvements already underway."
2023 "Value Creation Program"
Giacomo Dall'Aglio, Kaleyra CFO,
commented, "Kaleyra is announcing that the Company has begun its
2023 restructuring and cost reduction program. The program is
designed to position Kaleyra to serve the demand from global
businesses to interact with their customer base using existing and
emerging communication channels, while driving labor and cost
efficiencies that are available to Kaleyra from its geographical
scale."
The program seeks to achieve the following goals:
- Adjusted EBITDA to exceed 20% growth in FY2023 compared to
FY2022, with additional growth in FY2024;
- Organizational streamlining aimed to reduce monthly cash
payroll costs by more than 15% in FY2023;
- Increasing net cash provided by operating activities by FY2023
year end compared to FY2022;
- Continue the focus on R&D investments to provide high
quality service standards and offer new products to our
customers.
"In 2022 our technology managed 51.5 billion messages and 8.1
billion voice calls with over 1,600 operators, including all tier-1
US carriers directly connected. During Q4 Kaleyra signed strategic
partnerships with telecom operators in important markets including
PLDT in the Philippines and Claro
in Central America. Direct
connectivity is vital to reduce costs and to ensure needed quality
to serve global enterprise customers. Looking ahead into 2023, we
will continue to build our partnership pipeline and develop our
technologies," concluded Calogero.
Fourth Quarter 2022 Financial Results
Results
compare the 2022 fourth quarter ended December 31, 2022, to the 2021 fourth quarter
ended December 31, 2021, unless
otherwise indicated.
- Total revenue was $93.7
million, an increase of 4.1% from $90.0 million in the comparable year-ago period
($97.7 million or 8.6% increase using
Q42021 foreign exchange rates). The increase in revenue generated
in the quarter was mainly driven by new customers and expansion of
volume with existing customers.
- Gross profit was $17.0
million compared to $21.1
million in the comparable year-ago period. The decrease in
gross profit was mainly due to the growth of the low marginality
international business and the higher customer onboarding
costs.
- Gross margin for the fourth quarter of 2022 was
18.2% compared to 23.5% for the fourth quarter of 2021. We expect
this will improve as new customers ramp up their volumes.
- Net loss totaled $57.8
million, or $1.28 per share
based on 45.2 million weighted-average shares outstanding, compared
to a net loss of $7.3 million, or
$0.17 per share based on 41.9 million
weighted-average shares outstanding, in the comparable year-ago
period. The increase in the net loss was predominantly due to an
impairment loss on intangible assets of $49.4 million, mainly driven by decreased
industry growth expectations and lower cash flow projections.
- Adjusted gross profit, a non-GAAP measurement of
operating performance reconciled below, was $19.0 million from $22.8
million in the comparable year-ago period.
- Adjusted gross margin, also a non-GAAP measurement of
operating performance reconciled below, was 20.3% for the fourth
quarter of 2022 compared to 25.3% in the comparable year-ago
period.
- Adjusted net income (loss), a non-GAAP measurement of
operating performance reconciled below, was a loss of $4.4 million, or $0.10 per basic and diluted share based on 45.2
million weighted-average shares outstanding, from a net income of
$3.9 million, or $0.09 and $0.08 per
basic and diluted share based on 41.9 and 51.9 million
weighted-average shares outstanding, respectively, in the
comparable year-ago period.
- Adjusted EBITDA, a non-GAAP measurement of operating
performance reconciled below, was $2.5 million, or 2.6% of
total revenue, compared to $9.6
million, or 10.7% of total revenue, in the comparable
year-ago period.
- At the end of the fourth quarter, cash and cash equivalents,
restricted cash and short-term investments were
$78.6 million ($82.2 million using foreign exchange rates
as of Q42021), compared to $97.9
million as of December 31,
2021
- Dollar-Based Net Expansion Rate of 98.1% (139.0% within
the top 30 customers).
Full Year 2022 Financial Results
Results compare
the 2022 full year ended December 31,
2022, to the 2021 full year ended December 31, 2021, unless otherwise
indicated.
- Total revenue increased by 26.7% to $339.2 million from $267.7
million in the comparable year-ago period (32.0% increase
using FY2021 foreign exchange rates). Revenue during the year
was driven by the full year contribution of mGage legacy customer
revenue, the growth with existing customers coupled with
ramping volume with new customers, and a constant focus on
enterprise businesses that deliver a large volume of messages.
- Gross profit increased 21.9% to $70.1 million from $57.5
million in the comparable year-ago period. Gross margin for
the 2022 full year was 20.7% compared to 21.5% for the 2021 full
year.
- Net loss totaled $98.5
million, or $2.25 per share
based on 43.9 million weighted-average shares outstanding, compared
to a net loss of $34.0 million, or
$0.92 per share based on 37.0 million
weighted-average shares outstanding, in the comparable year-ago
period. The increase in net loss was predominantly due to an
impairment loss on intangible assets of $49.4 million.
- Adjusted gross profit, a non-GAAP measurement of
operating performance reconciled below, increased 24.9% to
$76.6 million from $61.4 million in the comparable year-ago period.
Adjusted gross margin, also a non-GAAP measurement of operating
performance reconciled below, for the 2022 full year was
22.6% compared to 22.9% in the comparable year-ago period.
- Adjusted net income (loss), a non-GAAP measurement
of operating performance reconciled below, was a loss of
$1.2 million, or $0.03 per share based on 43.9 million
weighted-average shares outstanding, from a net income of
$6.1 million, or $0.16 per basic and $0.13 per diluted share based on 37.0 and 48.1
million weighted-average shares outstanding, respectively, in the
comparable year-ago period.
- Adjusted EBITDA, a non-GAAP measurement of operating
performance reconciled below, was $18.7
million, or 5.5% of total revenue, compared to $18.6 million, or 7.0% of total revenue, in the
comparable year-ago period.
First Quarter Financial Outlook
Kaleyra's financial
outlook takes into consideration broader geopolitical and
macroeconomic factors such as the effects of the foreign exchange
environment, the possibility of global recession, and the impact of
inflationary economic conditions. Kaleyra remains confident in its
growth strategy and ability to capture its multinational market
opportunity. The Company is including financial projections for the
first quarter 2023 as follows:
- First Quarter 2023: Total revenue is expected to be
in the range of $77 – $81 million.
- The Company will be providing guidance one quarter at a time,
given the increasing difficulty of projecting forward global
economic conditions, but expects to see revenue growth in 2023 when
compared to 2022.
Conference Call
Kaleyra will hold a conference call
today, Wednesday, February 15, at
4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results.
A question-and-answer session will follow the management's
presentation.
U.S. dial-in: 1-855-327-6837
International dial-in: 1-631-891-4304
Please call the conference telephone number 10 minutes prior to
the start time. An operator will register your name and
organization. If you have any difficulty connecting with the
conference call, please contact Kalerya's investor relations at
KLR@mzgroup.us.
The conference call will be broadcast live and available for
replay here and via the Investor Relations section of Kaleyra's
website.
A telephonic replay of the conference call will be available
after 7:30 p.m. Eastern time on the
same day through February 22,
2023.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 10020921
About Kaleyra
Kaleyra, Inc. (NYSE: KLR) (NYSE American: KLR WS) is a global
group providing mobile communication services to financial
institutions, e-commerce players, OTTs, software companies,
logistic enablers, healthcare providers, retailers, and other large
organizations worldwide. Through its proprietary platform and
robust APIs, Kaleyra manages multi-channel integrated communication
services, consisting of messaging, rich messaging and instant
messaging, video, push notifications, e-mail, voice services, and
chatbots. Kaleyra's technology makes it possible to safely and
securely manage billions of messages monthly with over 1,600
operator connections in 190+ countries, including all tier-1 US
carriers. For more information, please visit www.kaleyra.com.
Non-GAAP Financial Measures and Related
Information
To provide investors and others with
additional information regarding Kaleyra's results, the following
non-GAAP financial measures, not prepared in accordance with
accounting principles generally accepted in the United States ("GAAP"), are
disclosed:
- Non-GAAP Adjusted Gross Profit and Non-GAAP Adjusted Gross
Margin. For the periods presented, Kaleyra defines non-GAAP
Adjusted Gross Profit and non-GAAP Gross Margin as GAAP gross
profit and GAAP gross margin, respectively, adjusted to exclude, as
applicable, certain expenses as presented in the table
below;
- Adjusted EBITDA is defined as of any date of calculation, as
the consolidated earnings/(loss) of Kaleyra and its
subsidiaries, before finance income and finance cost (including
bank charges), tax, depreciation and amortization, plus (i)
transaction and one-off expenses, (ii) without duplication of
clause (i), severance or change of control payments, (iii) any
expenses related to company restructuring, (iv) any compensation
expenses relating to stock options, restricted stock units,
restricted stock or similar equity interests as may be issued by
Kaleyra or any of its subsidiaries to its or their employees and
(v) any provision for the write-down of assets;
- Non-GAAP Adjusted Net Income (Loss) Per Share, Basic and
Diluted. For the periods presented, Kaleyra defines non-GAAP net
income (loss) and non-GAAP net income (loss) per share, basic and
diluted, as GAAP net loss and GAAP net loss per share, basic and
diluted, respectively, adjusted to exclude, as applicable, certain
expenses presented in the table below.
Management uses the foregoing non-GAAP financial information,
collectively, to evaluate its ongoing operations and for internal
planning and forecasting purposes. Kaleyra's management believes
that non-GAAP financial information, when taken collectively, may
be helpful to investors because it provides consistency and
comparability with past financial performance, facilitates
period-to-period comparisons of results of operations, and assists
in comparisons with other companies, many of which use similar
non-GAAP financial information to supplement their GAAP results.
Non-GAAP financial information is presented for supplemental
informational purposes only, should not be considered a substitute
for financial information presented in accordance with GAAP, and
may be different from similarly-titled non-GAAP measures used by
other companies. Whenever Kaleyra uses a non-GAAP financial
measure, a reconciliation is provided to the most closely
applicable financial measure stated in accordance with GAAP.
Investors are encouraged to review the related GAAP financial
measures and the reconciliation of these non-GAAP financial
measures to their most directly comparable GAAP financial
measures.
Operating Metrics
Dollar-Based Net Expansion
Rate. Kaleyra's ability to drive growth and generate incremental
revenue depends, in part, on the Company's ability to maintain and
grow its relationships with Active Existing Customer Accounts and
to increase their use of the platform. An important way in which
Kaleyra has historically tracked performance in this area is by
measuring the Dollar-Based Net Expansion Rate for those customer
accounts. Kaleyra's Dollar-Based Net Expansion Rate increases when
such customer accounts increase their usage of a product, extend
their usage of a product to new applications or adopt a new
product. Kaleyra's Dollar-Based Net Expansion Rate decreases when
such customer accounts cease or reduce their usage of a product or
when the Company lowers usage prices on a product. Kaleyra believes
that measuring Dollar-Based Net Expansion Rate provides a more
meaningful indication of the performance of the Company's efforts
to increase revenue from existing customers. To calculate the
Dollar-Based Net Expansion Rate, the Company first identifies the
cohort of customer accounts that were customer accounts in the same
quarter of the prior year. The Dollar-Based Net Expansion Rate is
the quotient obtained by dividing the revenue generated from that
cohort in a quarter, by the revenue generated from that same cohort
in the corresponding quarter in the prior year.
Active Existing Customer Accounts. Kaleyra believes that the
number of Active Customer Accounts is an important indicator of the
growth of its business, the market acceptance of its platform and
future revenue trends. Kaleyra defines an Active Customer Account
at the end of any reporting period as an individual account, as
identified by a unique account identifier, for which Kaleyra has
recognized revenue in the period.
Important Cautions Regarding Forward-Looking
Statements
This press release contains
forward-looking statements within the meaning of U.S. federal
securities laws. Such forward-looking statements include, but are
not limited to, statements regarding the financial statements of
Kaleyra, its omnichannel and other product and global customer
developments, its expectations, beliefs, intentions, plans,
prospects or strategies regarding the future revenue (including
revenue guidance) and the business plans of Kaleyra's management
team, and the impact of the COVID-19 pandemic, and any anticipated
lessening of such impact, and the broader market volatility and
geopolitical and macroeconomic factors on its business and
financial performance. Any statements contained herein that are not
statements of historical fact may be deemed to be forward-looking
statements. In addition, any statements that refer to projections,
forecasts or other characterizations of future events or
circumstances, including any underlying assumptions, are
forward-looking statements. The words "anticipate," "believe,"
"continue," "could," "estimate," "expect," "intends," "may,"
"might," "plan," "possible," "potential," "predict," "project,"
"should," "would" and similar expressions may identify
forward-looking statements, but the absence of these words does not
mean that a statement is not forward-looking. The forward-looking
statements contained in this press release are based on certain
assumptions and analyses made by Kaleyra in light of its experience
and perception of historical trends, current conditions and
expected future developments and their potential effects on Kaleyra
as well as other factors they believe are appropriate in the
circumstances. There can be no assurance that future developments
affecting Kaleyra will be those anticipated. These forward-looking
statements involve a number of risks, uncertainties (some of which
are beyond the control of the parties) or other assumptions that
may cause actual results or performance to be materially different
from those expressed or implied by these forward-looking
statements, including the mix of services utilized by Kaleyra's
customers and such customers' needs for these services, including
any variability by geography, market acceptance of new service
offerings, the ability of Kaleyra to expand what it does for
existing customers as well as to add new customers, the ability of
Kaleyra to achieve the goals of its 2023 "Value Creation Program",
that Kaleyra will have sufficient capital to operate as
anticipated, and the impact that the novel coronavirus and the
illness, COVID-19, that it causes, , and the impact of other
geopolitical and macroeconomic factors such as the global inflation
and the war in Ukraine, may have
on Kaleyra's operations, the demand for Kaleyra's products, global
supply chains and economic activity in general. Should one or more
of these risks or uncertainties materialize or should any of the
assumptions being made prove incorrect, actual results may vary in
material respects from those projected in these forward-looking
statements. We undertake no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required under
applicable securities laws.
Investor Contacts:
Colin Gillis
Vice President of Investor Relations
917-580-2548
colin.gillis@kaleyra.com
Shannon Devine
203-741-8811
KLR@mzgroup.us
-Financial Tables to Follow-
KALEYRA,
INC.
|
Consolidated Balance
Sheets
|
(Unaudited, in
thousands)
|
|
|
December 31,
2022
|
|
December 31,
2021
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
77,500
|
|
$
|
90,001
|
Restricted
cash
|
|
480
|
|
|
1,701
|
Short-term
investments
|
|
587
|
|
|
6,236
|
Trade receivables,
net
|
|
86,783
|
|
|
85,945
|
Deferred
cost
|
|
319
|
|
|
341
|
Prepaid
expenses
|
|
3,989
|
|
|
5,357
|
Other current
assets
|
|
3,387
|
|
|
2,599
|
Total current
assets
|
|
173,045
|
|
|
192,180
|
Property and equipment,
net
|
|
23,826
|
|
|
18,811
|
Operating Right-of-use
assets
|
|
2,931
|
|
|
-
|
Intangible assets,
net
|
|
57,400
|
|
|
125,396
|
Goodwill
|
|
111,526
|
|
|
110,465
|
Deferred tax
assets
|
|
-
|
|
|
1,230
|
Other long-term
assets
|
|
1,445
|
|
|
399
|
Total
assets
|
$
|
370,173
|
|
$
|
448,481
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
$
|
82,258
|
|
$
|
70,942
|
Current portion of
notes payable
|
|
405
|
|
|
-
|
Lines of
credit
|
|
3,955
|
|
|
5,256
|
Current portion of
bank and other borrowings
|
|
11,419
|
|
|
10,508
|
Deferred
revenue
|
|
3,528
|
|
|
9,553
|
Payroll and payroll
related accrued liabilities
|
|
5,993
|
|
|
6,907
|
Other current
liabilities
|
|
9,431
|
|
|
8,274
|
Total current
liabilities
|
|
116,989
|
|
|
111,440
|
Long-term portion of
bank and other borrowings
|
|
13,459
|
|
|
22,910
|
Long-term portion of
notes payable
|
|
191,777
|
|
|
190,147
|
Long-term portion of
employee benefit obligation
|
|
2,373
|
|
|
2,338
|
Deferred tax
liabilities
|
|
-
|
|
|
2,384
|
Other long-term
liabilities
|
|
3,362
|
|
|
1,840
|
Total
liabilities
|
|
327,960
|
|
|
331,059
|
Stockholders'
equity:
|
|
|
|
|
|
Common stock
|
|
5
|
|
|
4
|
Additional paid-in
capital
|
|
278,469
|
|
|
251,659
|
Treasury stock, at
cost
|
|
(30,431)
|
|
|
(30,431)
|
Accumulated other
comprehensive loss
|
|
(5,212)
|
|
|
(2,010)
|
Accumulated
deficit
|
|
(200,618)
|
|
|
(101,800)
|
Total stockholders'
equity
|
|
42,213
|
|
|
117,422
|
Total liabilities and
stockholders' equity
|
$
|
370,173
|
|
$
|
448,481
|
KALEYRA,
INC.
|
Consolidated
Statements of Operations
|
(Unaudited, in
thousands, except share and per share data)
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
93,662
|
|
$
|
90,008
|
|
$
|
339,168
|
|
$
|
267,739
|
Cost of
revenue
|
|
|
76,635
|
|
|
68,895
|
|
|
269,063
|
|
|
210,228
|
Gross profit
|
|
|
17,027
|
|
|
21,113
|
|
|
70,105
|
|
|
57,511
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
2,834
|
|
|
4,143
|
|
|
19,235
|
|
|
18,456
|
Sales and
marketing
|
|
|
7,763
|
|
|
6,286
|
|
|
29,270
|
|
|
21,077
|
General and
administrative
|
|
|
14,179
|
|
|
15,360
|
|
|
59,651
|
|
|
50,957
|
Intangible asset
impairment
|
|
|
49,446
|
|
|
-
|
|
|
49,446
|
|
|
-
|
Total operating
expenses
|
|
|
74,222
|
|
|
25,789
|
|
|
157,602
|
|
|
90,490
|
Loss from
operations
|
|
|
(57,195)
|
|
|
(4,676)
|
|
|
(87,497)
|
|
|
(32,979)
|
Other income,
net
|
|
|
65
|
|
|
27
|
|
|
185
|
|
|
185
|
Financial expense,
net
|
|
|
(3,775)
|
|
|
(3,626)
|
|
|
(13,971)
|
|
|
(8,795)
|
Foreign currency
loss
|
|
|
(2,315)
|
|
|
(99)
|
|
|
(1,400)
|
|
|
(97)
|
Loss before income tax
benefit
|
|
|
(63,220)
|
|
|
(8,374)
|
|
|
(102,683)
|
|
|
(41,686)
|
Income tax
benefit
|
|
|
(5,375)
|
|
|
(1,081)
|
|
|
(4,155)
|
|
|
(7,689)
|
Net loss
|
|
$
|
(57,845)
|
|
$
|
(7,293)
|
|
$
|
(98,528)
|
|
$
|
(33,997)
|
Net loss per common
share, basic and diluted
|
|
|
(1.28)
|
|
|
(0.17)
|
|
|
(2.25)
|
|
|
(0.92)
|
Weighted-average shares
used in computing net loss per common share, basic and
diluted
|
|
|
45,240,704
|
|
|
41,914,099
|
|
|
43,887,423
|
|
|
37,031,698
|
KALEYRA,
INC.
|
Consolidated
Statements of Cash Flows
|
(Unaudited, in
thousands)
|
|
|
Year Ended December
31,
|
|
2022
|
|
2021
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
Net loss
|
$
|
(98,528)
|
|
$
|
(33,997)
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
23,509
|
|
|
15,004
|
Stock-based
compensation
|
|
21,170
|
|
|
19,991
|
Impairment of
intangible assets
|
|
49,446
|
|
|
-
|
Non-cash reduction to
the right-of-use asset
|
|
(310)
|
|
|
-
|
Provision for doubtful
accounts
|
|
2,321
|
|
|
1,155
|
Realized gains on
marketable securities
|
|
22
|
|
|
30
|
Employee benefit
obligation
|
|
501
|
|
|
537
|
Change in fair value
of warrant liability
|
|
(863)
|
|
|
546
|
Reversal of accrued
interest on forward share purchase agreement
|
|
-
|
|
|
(659)
|
Non-cash interest
expense
|
|
2,048
|
|
|
1,254
|
Deferred
taxes
|
|
(4,709)
|
|
|
(8,052)
|
Change in operating
assets and liabilities:
|
|
|
|
|
|
Trade
receivables
|
|
(5,917)
|
|
|
(16,879)
|
Other current
assets
|
|
296
|
|
|
(2,396)
|
Deferred
costs
|
|
22
|
|
|
76
|
Operating lease
liability
|
|
257
|
|
|
-
|
Other long-term
assets
|
|
(1,164)
|
|
|
1,416
|
Accounts
payable
|
|
14,876
|
|
|
1,908
|
Other current
liabilities
|
|
3,238
|
|
|
2,135
|
Deferred
revenue
|
|
(5,775)
|
|
|
5,609
|
Long-term
liabilities
|
|
250
|
|
|
390
|
Net cash provided by
(used in) operating activities
|
|
690
|
|
|
(11,932)
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
Purchase of short-term
investments
|
|
(1,165)
|
|
|
(52,224)
|
Sale of short-term
investments
|
|
6,521
|
|
|
50,741
|
Purchase of property
and equipment
|
|
(2,101)
|
|
|
(1,857)
|
Capitalized software
development costs
|
|
(8,144)
|
|
|
(5,226)
|
Purchase of intangible
assets
|
|
(17)
|
|
|
(31)
|
Acquisition of mGage,
net of cash acquired
|
|
-
|
|
|
(195,346)
|
Acquisition of Bandyer,
net of cash acquired
|
|
(1,005)
|
|
|
(13,304)
|
Net cash used in
investing activities
|
|
(5,911)
|
|
|
(217,247)
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
Proceeds from
(repayments on) line of credit, net
|
|
(1,117)
|
|
|
327
|
Borrowings on term
loans
|
|
2,519
|
|
|
1,268
|
Repayments on term
loans
|
|
(9,170)
|
|
|
(7,728)
|
Proceeds from issuance
of convertible notes, net of issuance costs
|
|
-
|
|
|
188,637
|
Repayments on
notes
|
|
-
|
|
|
(7,500)
|
Receipts related to
forward share purchase agreements
|
|
-
|
|
|
17,045
|
Proceeds from issuance
of common stock in Private Investment in Public Equity
offering (PIPE), net of issuance costs
|
|
-
|
|
|
99,051
|
Proceeds related to
settlement of non-forfeited 2020 Sponsor Earnout Shares
|
|
-
|
|
|
1,244
|
Proceeds from exercise
of common stock warrants
|
|
-
|
|
|
2,873
|
Repurchase of
warrants
|
|
-
|
|
|
(5,474)
|
Repayments on capital
lease
|
|
(242)
|
|
|
(138)
|
Net cash provided by
(used in) financing activities
|
$
|
(8,010)
|
|
$
|
289,605
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
|
(491)
|
|
|
(1,694)
|
Net increase (decrease)
in cash, cash equivalents and restricted cash
|
|
(13,722)
|
|
|
58,732
|
Cash, cash equivalents
and restricted cash, beginning of period
|
$
|
91,702
|
|
$
|
32,970
|
Cash, cash equivalents
and restricted cash, end of period
|
$
|
77,980
|
|
$
|
91,702
|
KALEYRA,
INC.
|
Adjusted Gross
Profit and Adjusted Gross Margin Reconciliation of GAAP to Non-GAAP
Financial Information
|
For the Three Months
and the Year Ended December 31, 2022 and 2021
|
(Unaudited, in
thousands)
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
|
2022
|
2021
|
|
2022
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Gross
Profit
|
|
$
|
17,027
|
$
|
21,113
|
|
$
|
70,105
|
$
|
57,511
|
Consolidated Gross
Profit Margin %
|
|
|
18.2 %
|
|
23.5 %
|
|
|
20.7 %
|
|
21.5 %
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
acquired intangibles
|
|
|
1,369
|
|
1,651
|
|
|
5,925
|
|
3,845
|
One-off
contingencies
|
|
|
617
|
|
-
|
|
|
617
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjusted
Gross Profit
|
|
$
|
19,013
|
$
|
22,764
|
|
$
|
76,647
|
$
|
61,356
|
Non-GAAP Adjusted
Gross Profit Margin %
|
|
|
20.3 %
|
|
25.3 %
|
|
|
22.6 %
|
|
22.9 %
|
KALEYRA,
INC.
|
Adjusted EBITDA
Reconciliation to Financial Information
|
For the Three Months
and the Year Ended December 31, 2022 and 2021
|
(Unaudited, in
thousands)
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
2022
|
2021
|
|
2022
|
2021
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
$
|
(57,845)
|
$
|
(7,293)
|
|
$
|
(98,528)
|
$
|
(33,997)
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
(65)
|
|
(27)
|
|
|
(185)
|
|
(185)
|
Financial expense,
net
|
|
3,775
|
|
3,626
|
|
|
13,971
|
|
8,795
|
Foreign currency
loss
|
|
2,315
|
|
99
|
|
|
1,400
|
|
97
|
Income tax
benefit
|
|
(5,375)
|
|
(1,081)
|
|
|
(4,155)
|
|
(7,689)
|
Loss from
operations
|
$
|
(57,195)
|
$
|
(4,676)
|
|
$
|
(87,497)
|
$
|
(32,979)
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
5,952
|
|
6,027
|
|
|
23,509
|
|
15,003
|
Intangible asset
impairment
|
|
49,446
|
|
-
|
|
|
49,446
|
|
-
|
Stock-based
compensation and others
|
|
(3,638)
|
|
7,111
|
|
|
21,170
|
|
25,611
|
Transaction and one-off
costs
|
|
7,902
|
|
779
|
|
|
11,963
|
|
10,637
|
Company
restructuring
|
|
-
|
|
365
|
|
|
85
|
|
365
|
Adjusted
EBITDA
|
$
|
2,467
|
$
|
9,606
|
|
$
|
18,676
|
$
|
18,637
|
KALEYRA,
INC.
|
Adjusted Net Income
(Loss) per share Reconciliation of GAAP to Non-GAAP Financial
Information
|
For the Three Months
and the Year Ended December 31, 2022 and 2021
|
(Unaudited, in
thousands except share and per share data)
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
|
2022
|
2021
|
|
2022
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
Net
Loss
|
|
$
|
(57,845)
|
$
|
(7,293)
|
|
$
|
(98,528)
|
$
|
(33,997)
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation and others
|
|
|
7,902
|
|
779
|
|
|
11,963
|
|
10,637
|
Transaction and one-off
costs (incl. severance)
|
|
|
(3,638)
|
|
7,111
|
|
|
21,170
|
|
25,611
|
Amortization of
acquired intangibles
|
|
|
4,143
|
|
4,478
|
|
|
16,295
|
|
10,836
|
Intangible asset
impairment
|
|
|
49,446
|
|
-
|
|
|
49,446
|
|
-
|
Amortization of debt
discount and issuance costs for convertible debt
|
|
|
537
|
|
500
|
|
|
2,035
|
|
1,105
|
Estimated tax effects
of adjustments (1)
|
|
|
(4,964)
|
|
(1,661)
|
|
|
(3,823)
|
|
(1,549)
|
Net tax benefits
related to discrete tax items
|
|
|
-
|
|
-
|
|
|
220
|
|
(6,586)
|
Non-GAAP Net Income
(Loss)
|
|
$
|
(4,419)
|
$
|
3,914
|
|
$
|
(1,222)
|
$
|
6,057
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss per
share
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(1.28)
|
$
|
(0.17)
|
|
$
|
(2.25)
|
$
|
(0.92)
|
Diluted
|
|
$
|
(1.28)
|
$
|
(0.17)
|
|
$
|
(2.25)
|
$
|
(0.92)
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjusted
Net Income (Loss) per share
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.10)
|
$
|
0.09
|
|
$
|
(0.03)
|
$
|
0.16
|
Diluted
|
|
$
|
(0.10)
|
$
|
0.08
|
|
$
|
(0.03)
|
$
|
0.13
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average number
of Shares Outstanding (basic)
|
|
45,240,704
|
41,914,099
|
|
43,887,423
|
37,031,698
|
Weighted Average number
of Shares Outstanding (diluted)
|
|
45,240,704
|
51,943,454
|
|
43,887,423
|
48,085,571
|
|
|
|
|
|
|
|
|
(1) The Non-GAAP
estimated tax effects of adjustments are determined using the
Effective Tax Rate (ETR) calculated for the periods, excluding
discrete tax items.
|
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SOURCE Kaleyra US