Press release

Everbridge Announces Strong Fourth Quarter and Full Year 2020 Financial Results

0
Sponsored by Businesswire

Everbridge, Inc. (NASDAQ: EVBG), the global leader in critical event management (CEM), today announced its financial results for the fourth quarter and full year ended December 31, 2020.

“We posted strong financial performance during 2020 despite challenges caused by the COVID-19 pandemic, increasing our top-line guidance every quarter and delivering 35% revenue growth for the full year,” said David Meredith, Chief Executive Officer of Everbridge. “We innovated to quickly develop new CEM solutions, such as our COVID-19 Shield™: Vaccine Distribution, to help our customers identify, manage, and respond to new threats against their people, assets and processes. Our fourth quarter results included high-water marks for the number of CEM and Public Warning wins. This momentum helped our International business and supported strong overall revenue growth. Finally, we signed and expanded new third-party reseller agreements that substantially extend our overall channel reach. As we look ahead to 2021, we remain excited about our future growth prospects and our ability to gain further traction with our CEM solutions.”

Fourth Quarter 2020 Financial Highlights

  • Total revenue was $75.6 million, an increase of 32% compared to $57.1 million for the fourth quarter of 2019.
  • GAAP operating loss was $(18.3) million, compared to a GAAP operating loss of $(10.2) million for the fourth quarter of 2019.
  • Non-GAAP operating income was $1.3 million, compared to non-GAAP operating income of $2.6 million for the fourth quarter of 2019.
  • GAAP net loss was $(24.6) million, compared to $(13.1) million for the fourth quarter of 2019. GAAP net loss per share was $(0.70), based on 35.1 million basic and diluted weighted average common shares outstanding, compared to $(0.39) for the fourth quarter of 2019, based on 33.8 million basic and diluted weighted average common shares outstanding.
  • Non-GAAP net income was $1.0 million, compared to non-GAAP net income of $3.2 million in the fourth quarter of 2019. Non-GAAP diluted net income per share was $0.03, based on 36.1 million diluted weighted average common shares outstanding, compared to non-GAAP net income per share of $0.09 for the fourth quarter of 2019, based on 34.8 million diluted weighted average common shares outstanding.
  • Adjusted EBITDA was $4.1 million, compared to $5.0 million in the fourth quarter of 2019.
  • Cash flow from operations was an inflow of $19.4 million, reaching a record level, compared to an inflow of $1.5 million for the fourth quarter of 2019.
  • Free cash flow was an all-time high of $15.9 million compared to an outflow of $(1.3) million for the fourth quarter of 2019.

Full Year 2020 Financial Highlights

  • Total revenue was $271.1 million, an increase of 35% compared to $200.9 million for 2019.
  • GAAP operating loss was $(72.2) million, compared to a GAAP operating loss of $(47.2) million for 2019.
  • Non-GAAP operating loss was $(1.7) million, compared to non-GAAP operating loss of $(3.9) million for 2019.
  • GAAP net loss was $(93.4) million, compared to $(52.3) million for 2019. GAAP net loss per share was $(2.70), based on 34.6 million basic and diluted weighted average common shares outstanding, compared to $(1.58) for 2019, based on 33.2 million basic and diluted weighted average common shares outstanding.
  • Non-GAAP net loss was $(0.2) million, compared to $(1.8) million in 2019. Non-GAAP net loss per share was $(0.01), based on 34.6 million basic and diluted weighted average common shares outstanding, compared to $(0.05) for 2019, based on 33.2 million basic and diluted weighted average common shares outstanding.
  • Adjusted EBITDA was $8.0 million, compared to $5.2 million in 2019.
  • Cash flow from operations was an inflow of $15.8 million compared to an inflow of $10.3 million for 2019.
  • Free cash flow was an inflow of $2.9 million compared to an outflow of $(2.8) million for 2019.
  • Cash, cash equivalents, and short-term investments as of December 31, 2020 totaled $467.2 million, compared to $531.6 million as of December 31, 2019.
  • Total deferred revenue increased 27% from $133.5 million as of December 31, 2019 to $170.1 million as of December 31, 2020.

Recent Business Highlights

  • Ended the fourth quarter with 5,613 global enterprise customers, up from 5,024 at the end of the fourth quarter of 2019.
  • In 2020, Everbridge customers used its software-as-a-service (SaaS) platform to send more than 5 billion interactions, an increase of greater than 40% compared to 3.5 billion interactions in 2019.
  • Continued Public Warning momentum with another statewide win in Oregon to power public alerts and warning system for all residents and visitors.
  • Announced COVID-19 Shield™: Vaccine Distribution, an extension to its CEM platform offering risk insights, logistics awareness and vaccine appointment management. Deployed its CEM Platform to power the digital vaccination distribution system for a variety of municipalities and organizations, including the entire state population of West Virginia, and the County of Sarasota, Florida, among others.
  • Launched its enhanced Public Warning Center, the first-of-its-kind modular and multi-channel front-end interface featuring the ability to create and transmit a combination of cell broadcast and address-, group-, and location-based SMS alerts for countrywide alerting from a single console.
  • Announced a partnership with Paris-based Atos SE (CAC40: ATO), a global leader in digital transformation and cybersecurity with 110,000 employees and annual revenue of € 12 billion, to expand CEM adoption worldwide.
  • Announced that the United States General Services Administration (GSA) selected the company’s Mass Notification platform to better protect the federal agency’s employees, facilities, and operations across more than 700 federally owned and leased locations.
  • Received an important new patent related to multi-media capabilities of its world-class Public Warning system, which already serves the entire populations of 11 countries in Europe, Asia, Oceania, the Middle East, Africa, and the Americas, that delivers both traditional text alerts using Cell Broadcast (CB) and multimedia content such as audio, images, and video using Multicast Content Distribution (MCD) on 5G networks.
  • Appointed Stacey Wu, former SVP of Global Marketing at Fortinet, as Everbridge’s Chief Marketing Officer (CMO), and Jessica Deckinger, former three-time CMO and veteran branding and communications executive, as Everbridge’s Chief Communications Officer.
  • Continued to build reputation as an employer of choice with recognition from multiple publications as a top place to work and growth company of the year.

Financial Outlook

Based on information available as of today, Everbridge is issuing guidance for the first quarter and full year 2021 as indicated below.

 

First Quarter 2021

 

Full Year 2021

Revenue

$

75.3

 

to

$

75.7

 

 

$

342.1

 

to

$

344.1

 

Revenue growth

 

28

%

 

 

29

%

 

 

26

%

 

 

27

%

GAAP net loss

$

(29.9

)

 

$

(29.5

)

 

$

(114.5

)

 

$

(112.5

)

GAAP net loss per share

$

(0.84

)

 

$

(0.83

)

 

$

(3.22

)

 

$

(3.16

)

Non-GAAP net loss

$

(4.1

)

 

$

(3.7

)

 

$

(8.8

)

 

$

(6.8

)

Non-GAAP net loss per share

$

(0.12

)

 

$

(0.10

)

 

$

(0.25

)

 

$

(0.19

)

Adjusted EBITDA

$

(0.6

)

 

$

(0.2

)

 

$

7.5

 

 

$

8.5

 

(All figures in millions, except per share data)

Conference Call Information

What:

Everbridge Fourth Quarter and Full Year 2020 Financial Results Conference Call

When:

Thursday, February 18, 2021

Time:

4:30 p.m. ET

Live Call:

(833) 685-0904, domestic

(412) 317-5740, international

Replay:

(877) 344-7529, passcode 10151533, domestic

(412) 317-0088, passcode 10151533, international

Webcast (live & replay):

https://edge.media-server.com/mmc/p/urweo4nx

About Everbridge, Inc.

Everbridge, Inc. (NASDAQ: EVBG) is a global software company that provides enterprise software applications that automate and accelerate organizations’ operational response to critical events in order to Keep People Safe and Businesses Running™. During public safety threats such as active shooter situations, terrorist attacks or severe weather conditions, as well as critical business events including IT outages, cyber-attacks or other incidents such as product recalls or supply-chain interruptions, over 5,600 global customers rely on the company’s Critical Event Management Platform to quickly and reliably aggregate and assess threat data, locate people at risk and responders able to assist, automate the execution of pre-defined communications processes through the secure delivery to over 100 different communication devices, and track progress on executing response plans. Everbridge serves 8 of the 10 largest U.S. cities, 9 of the 10 largest U.S.-based investment banks, 47 of the 50 busiest North American airports, 9 of the 10 largest global consulting firms, 8 of the 10 largest global automakers, 9 of the 10 largest U.S.-based health care providers, and 7 of the 10 largest technology companies in the world. Everbridge is based in Boston with additional offices in 20 cities around the globe. For more information, visit www.everbridge.com, read the company blog, and follow on Twitter and Facebook.

Non-GAAP Financial Measures

This press release contains the following non-GAAP financial measures: non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP sales and marketing, non-GAAP research and development, non-GAAP general and administrative, non-GAAP operating expenses, non-GAAP operating income/(loss), non-GAAP net income/(loss), non-GAAP net income/(loss) per share, adjusted EBITDA, and free cash flow.

Non-GAAP operating income/(loss) excludes stock-based compensation, change in fair value of contingent consideration and amortization of acquired intangible assets. Non-GAAP net income/(loss) excludes stock-based compensation, change in fair value of contingent consideration, amortization of acquired intangible assets, accretion of interest on convertible senior notes and loss on extinguishment of convertible notes. Adjusted EBITDA represents net income/(loss) before interest income and interest expense, income tax expense and benefit, depreciation and amortization expense, loss on extinguishment of convertible notes, change in fair value of contingent consideration and stock-based compensation expense. Free cash flow is cash flow from operations, less cash used for capital expenditures and additions to capitalized software development costs.

We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Everbridge’s financial condition and results of operations. We use these non-GAAP measures for financial, operational and budgetary decision-making purposes, to understand and evaluate our core operating performance and trends, and to generate future operating plans. We believe that these non-GAAP financial measures provide useful information regarding past financial performance and future prospects, and permit us to more thoroughly analyze key financial metrics used to make operational decisions. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other software companies, many of which present similar non-GAAP financial measures to investors.

We do not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. We urge investors to review the reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures, which are included in this press release, and not to rely on any single financial measure to evaluate our business.

Cautionary Language Concerning Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding the anticipated opportunity and trends for growth in our critical communications and enterprise safety applications and our overall business, our market opportunity, our expectations regarding sales of our products, our goal to maintain market leadership and extend the markets in which we compete for customers, and our expected financial results for the first quarter of 2021 and the full fiscal year 2021. These forward-looking statements are made as of the date of this press release and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as “expect,” “anticipate,” “should,” “believe,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “could,” “intend,” variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: the ability of our products and services to perform as intended and meet our customers’ expectations; our ability to attract new customers and retain and increase sales to existing customers; our ability to increase sales of our Mass Notification application and/or ability to increase sales of our other applications; our ability to successfully integrate businesses and assets that we have acquired or may acquire in the future; the impact of the global COVID-19 pandemic on our operations and those of our customers and suppliers; developments in the market for targeted and contextually relevant critical communications or the associated regulatory environment; our estimates of market opportunity and forecasts of market growth may prove to be inaccurate; we have not been profitable on a consistent basis historically and may not achieve or maintain profitability in the future; the lengthy and unpredictable sales cycles for new customers; nature of our business exposes us to inherent liability risks; our ability to attract, integrate and retain qualified personnel; our ability to maintain successful relationships with our channel partners and technology partners; our ability to manage our growth effectively; our ability to respond to competitive pressures; potential liability related to privacy and security of personally identifiable information; our ability to protect our intellectual property rights, and the other risks detailed in our risk factors discussed in filings with the U.S. Securities and Exchange Commission (“SEC”), including but not limited to our Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC on February 28, 2020. The forward-looking statements included in this press release represent our views as of the date of this press release. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

All Everbridge products are trademarks of Everbridge, Inc. in the USA and other countries. All other product or company names mentioned are the property of their respective owners.

Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

December 31,

 

2020

 

2019

Current assets:

 

 

Cash and cash equivalents

$

467,171

 

$

531,575

 

Restricted cash

 

4,667

 

 

4,737

 

Accounts receivable, net

 

94,376

 

 

68,642

 

Prepaid expenses

 

11,774

 

 

6,675

 

Deferred costs and other current assets

 

20,464

 

 

13,501

 

Total current assets

 

598,452

 

 

625,130

 

Property and equipment, net

 

7,774

 

 

6,284

 

Capitalized software development costs, net

 

16,329

 

 

14,287

 

Goodwill

 

187,411

 

 

91,421

 

Intangible assets, net

 

113,762

 

 

67,100

 

Restricted cash

 

3,792

 

 

3,350

 

Prepaid expenses

 

1,943

 

 

2,009

 

Deferred costs and other assets

 

31,481

 

 

27,715

 

Total assets

$

960,944

 

$

837,296

 

Current liabilities:

 

 

Accounts payable

$

9,698

 

$

7,808

 

Accrued payroll and employee related liabilities

 

27,674

 

 

22,248

 

Accrued expenses

 

7,246

 

 

4,496

 

Deferred revenue

 

165,389

 

 

129,995

 

Contingent consideration liabilities

 

10,619

 

 

 

Other current liabilities

 

15,602

 

 

4,819

 

Total current liabilities

 

236,228

 

 

169,366

 

Long-term liabilities:

 

 

Deferred revenue, noncurrent

 

4,738

 

 

3,471

 

Convertible senior notes

 

441,514

 

 

430,282

 

Deferred tax liabilities

 

10,065

 

 

2,002

 

Other long-term liabilities

 

16,094

 

 

11,863

 

Total liabilities

 

708,639

 

 

616,984

 

Stockholders’ equity:

 

 

Common stock

 

35

 

 

34

 

Additional paid-in capital

 

542,776

 

 

425,945

 

Accumulated deficit

 

(293,316

)

 

(199,920

)

Accumulated other comprehensive income (loss)

 

2,810

 

 

(5,747

)

Total stockholders’ equity

 

252,305

 

 

220,312

 

Total liabilities and stockholders’ equity

$

960,944

 

$

837,296

 

Consolidated Statements of Operations and Comprehensive Loss

(in thousands, except share and per share data)

(unaudited)

 

 

Three Months Ended

 

Twelve Months Ended

 

December 31,

 

December 31,

 

2020

 

2019

 

2020

 

2019

Revenue

$

75,608

 

 

$

57,111

 

 

$

271,141

 

 

$

200,882

 

Cost of revenue

 

21,831

 

 

 

18,361

 

 

 

83,028

 

 

 

63,535

 

Gross profit

 

53,777

 

 

 

38,750

 

 

 

188,113

 

 

 

137,347

 

 

 

71.13

%

 

 

67.85

%

 

 

69.38

%

 

 

68.37

%

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing

 

33,606

 

 

 

23,742

 

 

 

123,330

 

 

 

87,731

 

Research and development

 

16,455

 

 

 

12,860

 

 

 

62,512

 

 

 

50,024

 

General and administrative

 

22,009

 

 

 

12,363

 

 

 

74,485

 

 

 

46,820

 

Total operating expenses

 

72,070

 

 

 

48,965

 

 

 

260,327

 

 

 

184,575

 

Operating loss

 

(18,293

)

 

 

(10,215

)

 

 

(72,214

)

 

 

(47,228

)

Other expense, net:

 

 

 

 

 

 

 

Interest and investment income

 

92

 

 

 

958

 

 

 

2,007

 

 

 

4,499

 

Interest expense

 

(6,107

)

 

 

(2,492

)

 

 

(24,089

)

 

 

(7,478

)

Loss on extinguishment of convertible notes

 

(402

)

 

 

(1,406

)

 

 

(446

)

 

 

(1,406

)

Other expense, net

 

(211

)

 

 

(83

)

 

 

(921

)

 

 

(212

)

Total other expense, net

 

(6,628

)

 

 

(3,023

)

 

 

(23,449

)

 

 

(4,597

)

Loss before income taxes

 

(24,921

)

 

 

(13,238

)

 

 

(95,663

)

 

 

(51,825

)

Benefit from (provision for) income taxes

 

335

 

 

 

106

 

 

 

2,267

 

 

 

(425

)

Net loss

$

(24,586

)

 

$

(13,132

)

 

$

(93,396

)

 

$

(52,250

)

Net loss per share attributable to common stockholders:

 

 

 

 

 

 

 

Basic

$

(0.70

)

 

$

(0.39

)

 

$

(2.70

)

 

$

(1.58

)

Diluted

$

(0.70

)

 

$

(0.39

)

 

$

(2.70

)

 

$

(1.58

)

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

Basic

 

35,100,789

 

 

 

33,813,978

 

 

 

34,581,144

 

 

 

33,161,656

 

Diluted

 

35,100,789

 

 

 

33,813,978

 

 

 

34,581,144

 

 

 

33,161,656

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

9,279

 

 

 

1,077

 

 

 

8,557

 

 

 

(679

)

Total comprehensive loss

$

(15,307

)

 

$

(12,055

)

 

$

(84,839

)

 

$

(52,929

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense included in the above:

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

Three Months Ended

 

Twelve Months Ended

 

December 31,

 

December 31,

 

2020

 

2019

 

2020

 

2019

Cost of revenue

$

801

 

 

$

610

 

 

$

2,954

 

 

$

1,966

 

Sales and marketing

 

4,026

 

 

 

2,645

 

 

 

15,946

 

 

 

9,983

 

Research and development

 

1,960

 

 

 

2,260

 

 

 

8,703

 

 

 

7,820

 

General and administrative

 

5,029

 

 

 

3,880

 

 

 

19,152

 

 

 

13,720

 

Total stock-based compensation

$

11,816

 

 

$

9,395

 

 

$

46,755

 

 

$

33,489

 

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

Three Months Ended

 

Twelve Months Ended

 

December 31,

 

December 31,

 

2020

 

2019

 

2020

 

2019

Cash flows from operating activities:

 

 

 

 

 

 

 

Net loss

$

(24,586

)

 

$

(13,132

)

 

$

(93,396

)

 

$

(52,250

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

8,643

 

 

 

6,479

 

 

 

30,759

 

 

 

19,671

 

Amortization of deferred costs

 

3,457

 

 

 

2,496

 

 

 

12,609

 

 

 

7,982

 

Deferred income taxes

 

(1,168

)

 

 

(92

)

 

 

(3,478

)

 

 

109

 

Accretion of interest on convertible senior notes

 

5,634

 

 

 

2,044

 

 

 

22,161

 

 

 

5,711

 

Loss on extinguishment of convertible notes

 

402

 

 

 

1,406

 

 

 

446

 

 

 

1,406

 

Provision for credit losses and sales reserve

 

1,629

 

 

 

19

 

 

 

3,071

 

 

 

661

 

Change in fair value of contingent consideration

 

2,165

 

 

 

(550

)

 

 

3,665

 

 

 

(550

)

Stock-based compensation

 

11,816

 

 

 

9,395

 

 

 

46,755

 

 

 

33,489

 

Other non-cash adjustments

 

159

 

 

 

7

 

 

 

78

 

 

 

(241

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

(14,685

)

 

 

(17,153

)

 

 

(22,614

)

 

 

(25,558

)

Prepaid expenses

 

769

 

 

 

1,663

 

 

 

(3,983

)

 

 

(3,481

)

Deferred costs

 

(6,902

)

 

 

(6,855

)

 

 

(18,902

)

 

 

(15,293

)

Other assets

 

3,394

 

 

 

834

 

 

 

146

 

 

 

1,758

 

Accounts payable

 

(739

)

 

 

(2,006

)

 

 

1,547

 

 

 

5,312

 

Accrued payroll and employee related liabilities

 

(466

)

 

 

2,574

 

 

 

3,499

 

 

 

4,548

 

Accrued expenses

 

1,058

 

 

 

(1,012

)

 

 

1,057

 

 

 

(1,308

)

Deferred revenue

 

23,857

 

 

 

17,331

 

 

 

24,964

 

 

 

29,704

 

Other liabilities

 

4,962

 

 

 

(1,985

)

 

 

7,419

 

 

 

(1,353

)

Net cash provided by operating activities

 

19,399

 

 

 

1,463

 

 

 

15,803

 

 

 

10,317

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Capital expenditures

 

(1,135

)

 

 

(852

)

 

 

(3,257

)

 

 

(5,269

)

Proceeds from landlord reimbursement

 

 

 

 

 

 

 

 

 

 

1,143

 

Payment for acquisition of business, net of acquired cash

 

(381

)

 

 

 

 

 

(55,138

)

 

 

(58,419

)

Purchase of short-term investments

 

 

 

 

 

 

 

 

 

 

(1,975

)

Maturities of short-term investments

 

 

 

 

 

 

 

 

 

 

47,765

 

Purchase of intangibles

 

(17,139

)

 

 

 

 

 

(17,139

)

 

 

 

Additions to capitalized software development costs

 

(2,355

)

 

 

(1,952

)

 

 

(9,651

)

 

 

(7,819

)

Net cash used in investing activities

 

(21,010

)

 

 

(2,804

)

 

 

(85,185

)

 

 

(24,574

)

Cash flows from financing activities:

 

 

 

 

 

 

 

Restricted stock units withheld to settle employee tax withholding liability

 

(2,095

)

 

 

(71

)

 

 

(6,364

)

 

 

(4,602

)

Proceeds from public offering, net of costs

 

 

 

 

 

 

 

 

 

 

139,110

 

Proceeds from issuance of convertible notes

 

 

 

 

450,000

 

 

 

 

 

 

450,000

 

Payments of debt issuance costs

 

 

 

 

(12,686

)

 

 

(131

)

 

 

(12,686

)

Purchase of convertible note capped call hedge

 

 

 

 

(44,910

)

 

 

 

 

 

(44,910

)

Repurchase of convertible notes

 

 

 

 

(57,791

)

 

 

 

 

 

(57,791

)

Proceeds from termination of convertible notes capped call hedge

 

 

 

 

5,780

 

 

 

 

 

 

5,780

 

Proceeds from employee stock purchase plan

 

 

 

 

 

 

 

3,389

 

 

 

2,337

 

Proceeds from stock option exercises

 

1,396

 

 

 

1,589

 

 

 

8,160

 

 

 

17,411

 

Other

 

 

 

 

 

 

 

 

 

 

(548

)

Net cash provided by (used in) financing activities

 

(699

)

 

 

341,911

 

 

 

5,054

 

 

 

494,101

 

Effect of exchange rates on cash, cash equivalents and restricted cash

 

707

 

 

 

(23

)

 

 

296

 

 

 

(250

)

Net increase (decrease) in cash, cash equivalents and restricted cash

 

(1,603

)

 

 

340,547

 

 

 

(64,032

)

 

 

479,594

 

Cash, cash equivalents and restricted cash—beginning of period

 

477,233

 

 

 

199,115

 

 

 

539,662

 

 

 

60,068

 

Cash, cash equivalents and restricted cash—end of period

$

475,630

 

 

$

539,662

 

 

$

475,630

 

 

$

539,662

 

Reconciliation of GAAP measures to non-GAAP measures

(in thousands, except share and per share data)

(unaudited)

 

 

Three Months Ended

 

Twelve Months Ended

 

December 31,

 

December 31,

 

2020

 

2019

 

2020

 

2019

Cost of revenue

$

21,831

 

 

$

18,361

 

 

$

83,028

 

 

$

63,535

 

Amortization of acquired intangibles

 

(1,135

)

 

 

(784

)

 

 

(4,157

)

 

 

(2,114

)

Stock-based compensation

 

(801

)

 

 

(610

)

 

 

(2,954

)

 

 

(1,966

)

Non-GAAP cost of revenue

$

19,895

 

 

$

16,967

 

 

$

75,917

 

 

$

59,455

 

 

 

 

 

 

 

 

 

Gross profit

$

53,777

 

 

$

38,750

 

 

$

188,113

 

 

$

137,347

 

Amortization of acquired intangibles

 

1,135

 

 

 

784

 

 

 

4,157

 

 

 

2,114

 

Stock-based compensation

 

801

 

 

 

610

 

 

 

2,954

 

 

 

1,966

 

Non-GAAP gross profit

$

55,713

 

 

$

40,144

 

 

$

195,224

 

 

$

141,427

 

Non-GAAP gross margin

 

73.69

%

 

 

70.29

%

 

 

72.00

%

 

 

70.40

%

 

 

 

 

 

 

 

 

Sales and marketing

$

33,606

 

 

$

23,742

 

 

$

123,330

 

 

$

87,731

 

Stock-based compensation

 

(4,026

)

 

 

(2,645

)

 

 

(15,946

)

 

 

(9,983

)

Non-GAAP sales and marketing

$

29,580

 

 

$

21,097

 

 

$

107,384

 

 

$

77,748

 

 

 

 

 

 

 

 

 

Research and development

$

16,455

 

 

$

12,860

 

 

$

62,512

 

 

$

50,024

 

Stock-based compensation

 

(1,960

)

 

 

(2,260

)

 

 

(8,703

)

 

 

(7,820

)

Non-GAAP research and development

$

14,495

 

 

$

10,600

 

 

$

53,809

 

 

$

42,204

 

 

 

 

 

 

 

 

 

General and administrative

$

22,009

 

 

$

12,363

 

 

$

74,485

 

 

$

46,820

 

Amortization of acquired intangibles

 

(4,478

)

 

 

(3,219

)

 

 

(15,979

)

 

 

(8,301

)

Change in fair value of contingent consideration

 

(2,165

)

 

 

550

 

 

 

(3,665

)

 

 

550

 

Stock-based compensation

 

(5,029

)

 

 

(3,880

)

 

 

(19,152

)

 

 

(13,720

)

Non-GAAP general and administrative

$

10,337

 

 

$

5,814

 

 

$

35,689

 

 

$

25,349

 

 

 

 

 

 

 

 

 

Total operating expenses

$

72,070

 

 

$

48,965

 

 

$

260,327

 

 

$

184,575

 

Amortization of acquired intangibles

 

(4,478

)

 

 

(3,219

)

 

 

(15,979

)

 

 

(8,301

)

Change in fair value of contingent consideration

 

(2,165

)

 

 

550

 

 

 

(3,665

)

 

 

550

 

Stock-based compensation

 

(11,015

)

 

 

(8,785

)

 

 

(43,801

)

 

 

(31,523

)

Non-GAAP operating expenses

$

54,412

 

 

$

37,511

 

 

$

196,882

 

 

$

145,301

 

 

 

 

 

 

 

 

 

Operating loss

$

(18,293

)

 

$

(10,215

)

 

$

(72,214

)

 

$

(47,228

)

Amortization of acquired intangibles

 

5,613

 

 

 

4,003

 

 

 

20,136

 

 

 

10,415

 

Change in fair value of contingent consideration

 

2,165

 

 

 

(550

)

 

 

3,665

 

 

 

(550

)

Stock-based compensation

 

11,816

 

 

 

9,395

 

 

 

46,755

 

 

 

33,489

 

Non-GAAP operating income (loss)

$

1,301

 

 

$

2,633

 

 

$

(1,658

)

 

$

(3,874

)

 

 

 

 

 

 

 

 

Net loss

$

(24,586

)

 

$

(13,132

)

 

$

(93,396

)

 

$

(52,250

)

Amortization of acquired intangibles

 

5,613

 

 

 

4,003

 

 

 

20,136

 

 

 

10,415

 

Change in fair value of contingent consideration

 

2,165

 

 

 

(550

)

 

 

3,665

 

 

 

(550

)

Stock-based compensation

 

11,816

 

 

 

9,395

 

 

 

46,755

 

 

 

33,489

 

Accretion of interest on convertible senior notes

 

5,634

 

 

 

2,044

 

 

 

22,161

 

 

 

5,711

 

Loss on extinguishment of convertible notes

 

402

 

 

 

1,406

 

 

 

446

 

 

 

1,406

 

Non-GAAP net income (loss)

$

1,044

 

 

$

3,166

 

 

$

(233

)

 

$

(1,779

)

 

 

 

 

 

 

 

 

Non-GAAP net income (loss) per share:

 

 

 

 

 

 

 

Basic

$

0.03

 

 

$

0.09

 

 

$

(0.01

)

 

$

(0.05

)

Diluted

$

0.03

 

 

$

0.09

 

 

$

(0.01

)

 

$

(0.05

)

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

Basic

 

35,100,789

 

 

 

33,813,978

 

 

 

34,581,144

 

 

 

33,161,656

 

Diluted

 

36,075,177

 

 

 

34,815,689

 

 

 

34,581,144

 

 

 

33,161,656

 

Reconciliation of GAAP measures to non-GAAP measures (Continued)

(in thousands)

(unaudited)

 

 

Three Months Ended

 

Twelve Months Ended

 

December 31,

 

December 31,

 

2020

 

2019

 

2020

 

2019

Net loss

$

(24,586

)

 

$

(13,132

)

 

$

(93,396

)

 

$

(52,250

)

Interest and investment expense, net

 

6,015

 

 

 

1,534

 

 

 

22,082

 

 

 

2,979

 

Income taxes, net

 

(335

)

 

 

(106

)

 

 

(2,267

)

 

 

425

 

Depreciation and amortization

 

8,643

 

 

 

6,479

 

 

 

30,759

 

 

 

19,671

 

EBITDA

 

(10,263

)

 

 

(5,225

)

 

 

(42,822

)

 

 

(29,175

)

Loss on extinguishment of debt

 

402

 

 

 

1,406

 

 

 

446

 

 

 

1,406

 

Change in fair value of contingent consideration

 

2,165

 

 

 

(550

)

 

 

3,665

 

 

 

(550

)

Stock-based compensation

 

11,816

 

 

 

9,395

 

 

 

46,755

 

 

 

33,489

 

Adjusted EBITDA

$

4,120

 

 

$

5,026

 

 

$

8,044

 

 

$

5,170

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

$

19,399

 

 

$

1,463

 

 

$

15,803

 

 

$

10,317

 

Capital expenditures

 

(1,135

)

 

 

(852

)

 

 

(3,257

)

 

 

(5,269

)

Additions to capitalized software development costs

 

(2,355

)

 

 

(1,952

)

 

 

(9,651

)

 

 

(7,819

)

Free cash flow

$

15,909

 

 

$

(1,341

)

 

$

2,895

 

 

$

(2,771

)

Remaining Performance Obligations

(in millions)

 

Remaining Performance Obligations

 

Remaining Performance Obligations

Next Twelve Months

Subscription and other contracts

$

358

 

 

$

213

 

Professional services contracts

 

16

 

 

 

13

 

Financial Outlook

(in millions, except share and per share data)

 

Three Months Ended

 

Year Ended

 

March 31, 2021

 

December 31, 2021

 

Low End

 

High End

 

Low End

 

High End

Net loss

$

(29.9

)

 

$

(29.5

)

 

$

(114.5

)

 

$

(112.5

)

Amortization of acquired intangibles

 

6.4

 

 

 

6.4

 

 

 

25.4

 

 

 

25.4

 

Accretion of interest on convertible senior notes

 

5.7

 

 

 

5.7

 

 

 

23.4

 

 

 

23.4

 

Stock-based compensation

 

13.7

 

 

 

13.7

 

 

 

56.9

 

 

 

56.9

 

Non-GAAP net loss

$

(4.1

)

 

$

(3.7

)

 

$

(8.8

)

 

$

(6.8

)

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

Basic

 

35,450,000

 

 

 

35,450,000

 

 

 

35,600,000

 

 

 

35,600,000

 

Diluted

 

35,450,000

 

 

 

35,450,000

 

 

 

35,600,000

 

 

 

35,600,000

 

 

 

 

 

 

 

 

 

Net loss per share

$

(0.84

)

 

$

(0.83

)

 

$

(3.22

)

 

$

(3.16

)

Non-GAAP net loss per share

$

(0.12

)

 

$

(0.10

)

 

$

(0.25

)

 

$

(0.19

)

 

 

 

 

 

 

 

 

Net loss

$

(29.9

)

 

$

(29.5

)

 

$

(114.5

)

 

$

(112.5

)

Interest expense, net

 

6.2

 

 

 

6.2

 

 

 

25.4

 

 

 

25.2

 

Income taxes, net

 

 

 

 

 

 

 

0.5

 

 

 

 

Depreciation and amortization

 

9.4

 

 

 

9.4

 

 

 

39.2

 

 

 

38.9

 

EBITDA

 

(14.3

)

 

 

(13.9

)

 

 

(49.4

)

 

 

(48.4

)

Stock-based compensation

 

13.7

 

 

 

13.7

 

 

 

56.9

 

 

 

56.9

 

Adjusted EBITDA

$

(0.6

)

 

$

(0.2

)

 

$

7.5

 

 

$

8.5