evbg-8k_20210809.htm
false 0001437352 0001437352 2021-08-09 2021-08-09

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 9, 2021

 

Everbridge, Inc.

(Exact name of registrant as specified in its charter)

 

 

Delaware

001-37874

26-2919312

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

 

 

 

25 Corporate Drive, Suite 400, Burlington, Massachusetts

01803

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (818) 230-9700

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange

on which registered

 

Common Stock, $0.001 par value

EVBG

The Nasdaq Global Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

 

 


 

Item 2.02

Results of Operations and Financial Condition.

On August 9, 2021, Everbridge, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2021. The Company’s press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information included in Item 2.02 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

Item 7.01

Regulation FD Disclosure.

On August 9, 2021, the Company issued a press release announcing its financial results for the quarter ended June 30, 2021.

The information included in Item 7.01 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

Item 9.01

Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit

No.

 

Description

 

 

 

99.1

Press release dated August 9, 2021

 

 

104

Cover Page Interactive Data File (embedded within the Inline XBRL document).

 


 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

Everbridge, Inc.

 

 

 

Dated: August 9, 2021

By:

/s/ Elliot J. Mark

 

 

Elliot J. Mark

 

 

Senior Vice President, General Counsel and Secretary

 

evbg-ex991_6.htm

Exhibit 99.1

Everbridge Announces Strong Second Quarter 2021 Financial Results

Highlighted by a Record Number of Critical Event Management (CEM) Wins

Burlington, Mass – August 9, 2021 Everbridge, Inc. (NASDAQ: EVBG), the global leader in critical event management (CEM), today announced its financial results for the second quarter ended June 30, 2021.

“We delivered strong second quarter results, building off the momentum we established at the beginning of the year,” said David Meredith, Chief Executive Officer of Everbridge.  “Both revenue and profitability exceeded our guidance, and we capitalized on growing demand for our CEM suite and our Public Warning capabilities. We completed a record 19 CEM transactions in the second quarter, which drove a record average selling price in the second quarter. With a growing number of digital and physical critical events, our mission is more important now than ever before.  We are looking forward to sustaining our momentum in the second half of the year and our confidence is reflected in our increased guidance for the year, as we continue to execute on our strategy and further penetrate the fast-growing critical event management market.”

Second Quarter 2021 Financial Highlights

 

Total revenue was $86.6 million, an increase of 33% compared to $65.4 million for the second quarter of 2020.

 

GAAP operating loss was $(27.4) million, compared to $(14.5) million for the second quarter of 2020.

 

Non-GAAP operating loss was $(1.9) million, compared to non-GAAP operating income of $1.5 million for the second quarter of 2020.

 

GAAP net loss was $(33.8) million, compared to $(19.2) million for the second quarter of 2020. GAAP net loss per share was $(0.89), based on 38.0 million basic and diluted weighted average common shares outstanding, compared to $(0.56) for the second quarter of 2020, based on 34.4 million basic and diluted weighted average common shares outstanding.

 

Non-GAAP net income was $1.5 million, compared to non-GAAP net income of $1.2 million in the second quarter of 2020. Non-GAAP diluted net income per share was $0.03, based on 45.1 million diluted weighted average common shares outstanding, compared to non-GAAP diluted net income per share of $0.03 for the second quarter of 2020, based on 35.7 million diluted weighted average common shares outstanding.

 

Adjusted EBITDA was $0.5 million, compared to $3.6 million in the second quarter of 2020.

 

Cash flow from operations was an outflow of $(5.1) million, compared to an outflow of $(3.9) million for the second quarter of 2020.

 

Free cash flow was an outflow of $(9.0) million, compared to an outflow of $(7.2) million for the second quarter of 2020.

Recent Business Highlights

 

Ended the second quarter with 5,890 global enterprise customers, up from 5,340 at the end of the second quarter of 2020.

 

Launched the industry’s first Critical Event Management (CEM) Certification™ Program for assessing an organization’s enterprise resilience, and announced Discover, Goldman Sachs, NBCUniversal, Dow and Alexion among the FORTUNE 500TM leaders earning the prestigious Best in Enterprise ResilienceTM designation through their rigorous CEM CertificationTM benchmarking.

 

 

Reinforced Everbridge’s position as a leader in critical event management by hosting the third of our COVID-19: Road to Recovery symposiums which have brought together tens of thousands of executives from 150 countries across business, healthcare, and government.  The virtual leadership summit in May featured marquee keynote speakers including the 42nd President of the United States Bill Clinton, as well as former United States Secretary of State Dr. Madeleine K. Albright, Chairman & Editor-In-Chief of Forbes Media Steve Forbes, Co-Founder of Apollo Global Management and owner of the Philadelphia 76ers Josh Harris, and a special address by Director-General of the World Health Organization (WHO) Dr. Tedros Adhanom Ghebreyesus.

 

 

Announced that Estonia, home to 1.3 million residents and a popular destination for 3.2 million annual tourists, and one of the world’s most advanced digital societies, selected Everbridge’s countrywide Public Warning solution to help keep its residents and visitors safe and informed in the event of an emergency.


 

Successfully deployed Everbridge Public Warning Cell Broadcast technology at three of the largest Mobile Network Operators in the United Kingdom, as a key technology component of the UK Government’s first-ever, nationwide emergency alerting system, planned for rollout later this year.

 

Announced a next-generation 911 solution designed to improve emergency dispatch in the United States. Through a partnership with RapidSOS, Everbridge 911 Connect™, an extension of the company’s CEM for Public Safety solutions, delivers enhanced location accuracy and provides unique caller identification information on wireless 911 calls, leveraging an expanded life safety database of over 250 million residential and business contacts.

 

Announced a partnership with Tech Data, a leading global IT distribution and solutions aggregator serving more than 125,000 partners, to help organizations automate the response to, and build resilience against, critical events while opening new routes to market for Everbridge.

 

Partnered with WizNucleus, a leading provider of cyber and physical security solutions to nuclear and electric grid customers, to increase digital and physical security for some of the world’s largest nuclear, electric, and other utility companies and expand CEM adoption within the energy industry.

Financial Outlook

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

 

Third Quarter 2021

 

 

Full Year 2021

 

Revenue

$

94.1

 

to

$

94.5

 

 

$

362.8

 

to

$

363.8

 

Revenue growth

 

32

%

 

 

33

%

 

 

34

%

 

 

34

%

GAAP net loss

$

(46.4

)

 

$

(46.0

)

 

$

(142.8

)

 

$

(141.6

)

GAAP net loss per share

$

(1.21

)

 

$

(1.20

)

 

$

(3.77

)

 

$

(3.74

)

Non-GAAP net income (loss)

$

(5.7

)

 

$

(5.3

)

 

$

0.5

 

 

$

1.7

 

Non-GAAP net income (loss) per share

$

(0.15

)

 

$

(0.14

)

 

$

0.01

 

 

$

0.04

 

Adjusted EBITDA

$

(2.1

)

 

$

(1.7

)

 

$

8.0

 

 

$

8.8

 

(All figures in millions, except per share data)

Conference Call Information

 

What:

Everbridge Second Quarter 2021 Financial Results Conference Call

When:

Monday, August 9, 2021

Time:

4:30 p.m. ET

Live Call:

(833) 685-0904, domestic

 

(412) 317-5740, international

Replay:

(877) 344-7529, passcode 10158373, domestic

 

(412) 317-0088, passcode 10158373, international

Webcast (live & replay):

https://edge.media-server.com/mmc/p/oo3cjcx8

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 Organizations 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 5,800  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, capped call modification and the tax impact of such adjustments. The tax impact was considered immaterial for fiscal year 2020 and quarters within fiscal year 2020; however, the prior period tax impact presentation has been recast to align with our 2021 reporting presentation. 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 and capped call modification, 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 third 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, 2020 filed with the SEC on February 26, 2021. 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)

 

 

June 30,

 

 

December 31,

 

 

2021

 

 

2020

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

$

559,851

 

 

$

467,171

 

Restricted cash

 

4,666

 

 

 

4,667

 

Accounts receivable, net

 

83,183

 

 

 

94,376

 

Prepaid expenses

 

13,301

 

 

 

11,774

 

Deferred costs and other current assets

 

21,348

 

 

 

20,464

 

Total current assets

 

682,349

 

 

 

598,452

 

Property and equipment, net

 

9,567

 

 

 

7,774

 

Capitalized software development costs, net

 

18,368

 

 

 

16,329

 

Goodwill

 

405,223

 

 

 

187,411

 

Intangible assets, net

 

216,723

 

 

 

113,762

 

Restricted cash

 

3,785

 

 

 

3,792

 

Prepaid expenses

 

1,795

 

 

 

1,943

 

Deferred costs and other assets

 

37,214

 

 

 

31,481

 

Total assets

$

1,375,024

 

 

$

960,944

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

$

10,964

 

 

$

9,698

 

Accrued payroll and employee related liabilities

 

26,860

 

 

 

27,674

 

Accrued expenses

 

10,235

 

 

 

7,246

 

Deferred revenue

 

196,481

 

 

 

165,389

 

Contingent consideration liabilities

 

18,775

 

 

 

10,619

 

Other current liabilities

 

14,376

 

 

 

15,602

 

Total current liabilities

 

277,691

 

 

 

236,228

 

Long-term liabilities:

 

 

 

 

 

 

 

Deferred revenue, noncurrent

 

13,509

 

 

 

4,738

 

Convertible senior notes

 

646,533

 

 

 

441,514

 

Deferred tax liabilities

 

14,022

 

 

 

10,065

 

Other long-term liabilities

 

17,940

 

 

 

16,094

 

Total liabilities

 

969,695

 

 

 

708,639

 

Stockholders' equity:

 

 

 

 

 

 

 

Common stock

 

38

 

 

 

35

 

Additional paid-in capital

 

752,773

 

 

 

542,776

 

Accumulated deficit

 

(348,926

)

 

 

(293,316

)

Accumulated other comprehensive income

 

1,444

 

 

 

2,810

 

Total stockholders' equity

 

405,329

 

 

 

252,305

 

Total liabilities and stockholders' equity

$

1,375,024

 

 

$

960,944

 

 

 


 

Consolidated Statements of Operations and Comprehensive Loss

(in thousands, except share and per share data)

(unaudited)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenue

$

86,649

 

 

$

65,377

 

 

$

168,859

 

 

$

124,277

 

Cost of revenue

 

27,665

 

 

 

19,423

 

 

 

52,945

 

 

 

40,312

 

Gross profit

 

58,984

 

 

 

45,954

 

 

 

115,914

 

 

 

83,965

 

 

 

68.07

%

 

 

70.29

%

 

 

68.65

%

 

 

67.56

%

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

41,483

 

 

 

28,741

 

 

 

76,010

 

 

 

58,329

 

Research and development

 

20,251

 

 

 

14,937

 

 

 

38,330

 

 

 

29,109

 

General and administrative

 

24,664

 

 

 

16,799

 

 

 

47,226

 

 

 

32,710

 

Total operating expenses

 

86,398

 

 

 

60,477

 

 

 

161,566

 

 

 

120,148

 

Operating loss

 

(27,414

)

 

 

(14,523

)

 

 

(45,652

)

 

 

(36,183

)

Other expense, net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and investment income

 

100

 

 

 

235

 

 

 

233

 

 

 

1,808

 

Interest expense

 

(9,655

)

 

 

(5,998

)

 

 

(16,215

)

 

 

(11,920

)

Loss on extinguishment of convertible notes and

   capped call modification

 

(37

)

 

 

 

 

 

(2,925

)

 

 

 

Other expense, net

 

(602

)

 

 

(438

)

 

 

(651

)

 

 

(515

)

Total other expense, net

 

(10,194

)

 

 

(6,201

)

 

 

(19,558

)

 

 

(10,627

)

Loss before income taxes

 

(37,608

)

 

 

(20,724

)

 

 

(65,210

)

 

 

(46,810

)

Benefit from income taxes

 

3,787

 

 

 

1,504

 

 

 

9,600

 

 

 

2,205

 

Net loss

$

(33,821

)

 

$

(19,220

)

 

$

(55,610

)

 

$

(44,605

)

Net loss per share attributable to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

(0.89

)

 

$

(0.56

)

 

$

(1.49

)

 

$

(1.30

)

Diluted

$

(0.89

)

 

$

(0.56

)

 

$

(1.49

)

 

$

(1.30

)

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

38,014,107

 

 

 

34,402,704

 

 

 

37,204,958

 

 

 

34,238,887

 

Diluted

 

38,014,107

 

 

 

34,402,704

 

 

 

37,204,958

 

 

 

34,238,887

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Foreign currency translation adjustment

 

1,231

 

 

 

2,343

 

 

 

(1,366

)

 

 

(4,177

)

Total comprehensive loss

$

(32,590

)

 

$

(16,877

)

 

$

(56,976

)

 

$

(48,782

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense included in the above:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Cost of revenue

$

819

 

 

$

703

 

 

$

1,818

 

 

$

1,311

 

Sales and marketing

 

5,579

 

 

 

3,917

 

 

 

9,321

 

 

 

7,525

 

Research and development

 

2,562

 

 

 

2,298

 

 

 

4,590

 

 

 

4,172

 

General and administrative

 

6,545

 

 

 

4,360

 

 

 

12,461

 

 

 

8,580

 

Total stock-based compensation

$

15,505

 

 

$

11,278

 

 

$

28,190

 

 

$

21,588

 


 

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

$

(33,821

)

 

$

(19,220

)

 

$

(55,610

)

 

$

(44,605

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

13,011

 

 

 

7,320

 

 

 

23,854

 

 

 

13,976

 

Amortization of deferred costs

 

3,462

 

 

 

2,813

 

 

 

7,184

 

 

 

5,735

 

Deferred income taxes

 

(3,077

)

 

 

(1,768

)

 

 

(9,778

)

 

 

(3,014

)

Accretion of interest on debt

 

9,508

 

 

 

5,513

 

 

 

15,821

 

 

 

10,949

 

Loss on extinguishment of convertible notes and

   capped call modification

 

37

 

 

 

 

 

 

2,925

 

 

 

 

Provision for credit losses and sales reserve

 

343

 

 

 

462

 

 

 

1,905

 

 

 

1,387

 

Stock-based compensation

 

15,505

 

 

 

11,278

 

 

 

28,190

 

 

 

21,588

 

Other non-cash adjustments

 

115

 

 

 

 

 

 

(32

)

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

7,830

 

 

 

2,896

 

 

 

19,312

 

 

 

3,341

 

Prepaid expenses

 

299

 

 

 

(208

)

 

 

(922

)

 

 

(3,265

)

Deferred costs

 

(4,657

)

 

 

(2,223

)

 

 

(8,107

)

 

 

(6,943

)

Other assets

 

1,918

 

 

 

640

 

 

 

(850

)

 

 

(3,429

)

Accounts payable

 

851

 

 

 

3,236

 

 

 

(60

)

 

 

2,164

 

Accrued payroll and employee related liabilities

 

(3,190

)

 

 

(3,555

)

 

 

(5,320

)

 

 

(334

)

Accrued expenses

 

(2,041

)

 

 

(2,325

)

 

 

971

 

 

 

(593

)

Deferred revenue

 

(8,553

)

 

 

(7,840

)

 

 

(180

)

 

 

(2,722

)

Other liabilities

 

(2,677

)

 

 

(889

)

 

 

(4,632

)

 

 

2,696

 

Net cash provided by (used in) operating activities

 

(5,137

)

 

 

(3,870

)

 

 

14,671

 

 

 

(3,069

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

(316

)

 

 

(651

)

 

 

(2,128

)

 

 

(1,175

)

Payments for acquisition of business, net of acquired cash

 

(165,265

)

 

 

(9,324

)

 

 

(197,666

)

 

 

(44,265

)

Additions to capitalized software development costs

 

(3,587

)

 

 

(2,669

)

 

 

(6,082

)

 

 

(4,673

)

Net cash used in investing activities

 

(169,168

)

 

 

(12,644

)

 

 

(205,876

)

 

 

(50,113

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of convertible notes

 

 

 

 

 

 

 

375,000

 

 

 

 

Payments of debt issuance costs

 

(829

)

 

 

 

 

 

(10,391

)

 

 

(131

)

Purchase of convertible notes capped call hedge

 

 

 

 

 

 

 

(35,100

)

 

 

 

Repurchase of convertible notes

 

 

 

 

 

 

 

(58,641

)

 

 

 

Proceeds from termination of convertible notes capped call hedge

 

 

 

 

 

 

 

10,650

 

 

 

 

Restricted stock units withheld to settle employee tax withholding liability

 

(1,233

)

 

 

(527

)

 

 

(2,843

)

 

 

(927

)

Proceeds from employee stock purchase plan

 

 

 

 

 

 

 

2,451

 

 

 

1,710

 

Proceeds from stock option exercises

 

559

 

 

 

1,596

 

 

 

2,163

 

 

 

4,585

 

Net cash provided by (used in) financing activities

 

(1,503

)

 

 

1,069

 

 

 

283,289

 

 

 

5,237

 

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

 

903

 

 

 

247

 

 

 

588

 

 

 

(419

)

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

 

(174,905

)

 

 

(15,198

)

 

 

92,672

 

 

 

(48,364

)

Cash, cash equivalents and restricted cash—beginning of period

 

743,207

 

 

 

506,496

 

 

 

475,630

 

 

 

539,662

 

Cash, cash equivalents and restricted cash—end of period

$

568,302

 

 

$

491,298

 

 

$

568,302

 

 

$

491,298

 


 

Reconciliation of GAAP measures to non-GAAP measures

(in thousands, except share and per share data)

(unaudited)

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Cost of revenue

$

27,665

 

 

$

19,423

 

 

$

52,945

 

 

$

40,312

 

Amortization of acquired intangibles

 

(2,978

)

 

 

(929

)

 

 

(5,582

)

 

 

(1,668

)

Stock-based compensation

 

(819

)

 

 

(703

)

 

 

(1,818

)

 

 

(1,311

)

Non-GAAP cost of revenue

$

23,868

 

 

$

17,791

 

 

$

45,545

 

 

$

37,333

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

$

58,984

 

 

$

45,954

 

 

$

115,914

 

 

$

83,965

 

Amortization of acquired intangibles

 

2,978

 

 

 

929

 

 

 

5,582

 

 

 

1,668

 

Stock-based compensation

 

819

 

 

 

703

 

 

 

1,818

 

 

 

1,311

 

Non-GAAP gross profit

$

62,781

 

 

$

47,586

 

 

$

123,314

 

 

$

86,944

 

Non-GAAP gross margin

 

72.5

%

 

 

72.8

%

 

 

73.0

%

 

 

70.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

$

41,483

 

 

$

28,741

 

 

$

76,010

 

 

$

58,329

 

Stock-based compensation

 

(5,579

)

 

 

(3,917

)

 

 

(9,321

)

 

 

(7,525

)

Non-GAAP sales and marketing

$

35,904

 

 

$

24,824

 

 

$

66,689

 

 

$

50,804

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

$

20,251

 

 

$

14,937

 

 

$

38,330

 

 

$

29,109

 

Stock-based compensation

 

(2,562

)

 

 

(2,298

)

 

 

(4,590

)

 

 

(4,172

)

Non-GAAP research and development

$

17,689

 

 

$

12,639

 

 

$

33,740

 

 

$

24,937

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

$

24,664

 

 

$

16,799

 

 

$

47,226

 

 

$

32,710

 

Amortization of acquired intangibles

 

(6,998

)

 

 

(3,798

)

 

 

(12,253

)

 

 

(7,205

)

Change in fair value of contingent consideration

 

(15

)

 

 

 

 

 

(57

)

 

 

 

Stock-based compensation

 

(6,545

)

 

 

(4,360

)

 

 

(12,461

)

 

 

(8,580

)

Non-GAAP general and administrative

$

11,106

 

 

$

8,641

 

 

$

22,455

 

 

$

16,925

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

$

86,398

 

 

$

60,477

 

 

$

161,566

 

 

$

120,148

 

Amortization of acquired intangibles

 

(6,998

)

 

 

(3,798

)

 

 

(12,253

)

 

 

(7,205

)

Change in fair value of contingent consideration

 

(15

)

 

 

 

 

 

(57

)

 

 

 

Stock-based compensation

 

(14,686

)

 

 

(10,575

)

 

 

(26,372

)

 

 

(20,277

)

Non-GAAP operating expenses

$

64,699

 

 

$

46,104

 

 

$

122,884

 

 

$

92,666

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

$

(27,414

)

 

$

(14,523

)

 

$

(45,652

)

 

$

(36,183

)

Amortization of acquired intangibles

 

9,976

 

 

 

4,727

 

 

 

17,835

 

 

 

8,873

 

Change in fair value of contingent consideration

 

15

 

 

 

 

 

 

57

 

 

 

 

Stock-based compensation

 

15,505

 

 

 

11,278

 

 

 

28,190

 

 

 

21,588

 

Non-GAAP operating income (loss)

$

(1,918

)

 

$

1,482

 

 

$