8-K
false000143735200014373522022-08-092022-08-09

 

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 09, 2022

 

 

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

 

 

(Former Name or Former Address, if Changed Since Last Report)

 

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 per share

 

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, 2022, Everbridge, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2022. 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 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit

No.

 

Description

 

 

 

99.1

 

Press release dated August 9, 2022

 

 

 

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, 2022

By:

/s/ Elliot J. Mark

 

 

Elliot J. Mark

 

 

Senior Vice President, General Counsel and Secretary

 

 


EX-99.1

Exhibit 99.1

Everbridge Announces Second Quarter 2022 Financial Results

Second quarter results reflect progress on 2022 Strategic Realignment

BURLINGTON, Mass – August 9, 2022 Everbridge, Inc. (NASDAQ: EVBG), the global leader in critical event management (CEM) and national public warning solutions, today announced its financial results for the second quarter ended June 30, 2022. Revenue was $103.0 million, up 19% year-over-year.

David Wagner, Everbridge’s recently appointed President and CEO said, “I am excited to join Everbridge at this important moment in the Company’s evolution. Everbridge is a pioneer and the clear industry leader in Critical Event Management and Public Warning. Everbridge offers powerful solutions for positive change with the ability to keep people safe and businesses running smoothly. I look forward to partnering with Patrick, Vernon and the entire Everbridge team to build on our commitment to growth, sustainable profitability, and increased shareholder value.”

“We delivered strong second quarter results and large enterprise deal momentum, demonstrating that our recent actions to streamline, integrate, and reduce complexity across our product portfolio are beginning to pay off for our customers,” said Vernon Irvin, Executive Vice President and Chief Revenue Officer. “We are looking forward to sustaining our progress in the second half of the year as we continue to expand our go-to-market channels and partnerships for our strategic CEM bundles and extend our global leadership in Public Warning systems.”

Patrick Brickley, Executive Vice President and Chief Financial Officer, added, “At the half-way point in the year, we have achieved planned milestones related to our strategic realignment of resources outlined at the start of 2022. We are on track to achieve mid-teens adjusted EBITDA margin exiting the year and remain focused on driving sustainable revenue growth with increasing profitability.”
 

Recent Business Highlights

Ended the second quarter with 6,345 global enterprise customers, up from 5,890 at the end of the second quarter of 2021.
Awarded contract by State of Maharashtra, India’s second most populous state, to provide emergency preparedness and response solutions to protect 150 million residents and annual tourists.
Joined the Amazon Web Services ISV Accelerate Program, expanding Everbridge’s go-to-market ecosystem and supporting AWS customers with their enterprise resilience and emergency response strategies for digital and physical critical events.
Entered into strategic partnership with Grupo Siayec, a leading provider of digital and physical security solutions in Latin America, to expand CEM adoption across the Mexican enterprise market.
Unveiled Service Intelligence, part of Everbridge’s Digital Operations platform, providing IT responders with advanced analytics to enable instant insight into digital disruptions, accelerating IT incident response while reducing time-consuming unplanned work and business impact.
Introduced the results of its first annual Best in Resilience™ study measuring organizational risk readiness as more global brands including Humana, Exact Sciences, Johnson Controls, and Medtronic achieve Best in Resilience™ certification.
Received a 2022 Edison Award recognizing innovation for Public Warning Center, the industry’s only all-channel, intelligent population alerting platform with a first-of-its-kind hybrid Cell Broadcast and Location-Based SMS alerting gateway.
Awarded for Best Company Leadership and Best Professional Development by leading workplace culture site Comparably.
 

Second Quarter 2022 Financial Summary

Total revenue was $103.0 million, an increase of 19% compared to $86.6 million for the second quarter of 2021.
GAAP operating loss was $(36.1) million, compared to a GAAP operating loss of $(27.4) million for the second quarter of 2021.
Non-GAAP operating profit was $1.0 million, compared to non-GAAP operating loss of $(1.9) million for the second quarter of 2021.

GAAP net loss was $(36.2) million, compared to $(33.8) million for the second quarter of 2021. GAAP net loss per share was $(0.91), based on 39.6 million basic and diluted weighted average common shares outstanding, compared to $(0.89) for the second quarter of 2021, based on 38.0 million basic and diluted weighted average common shares outstanding.
Non-GAAP net income was $1.5 million, compared to non-GAAP net income of $1.5 million in the second quarter of 2021. Non-GAAP diluted net income per share was $0.03, based on 46.0 million diluted weighted average common shares outstanding, compared to non-GAAP diluted net income per share of $0.03 for the second quarter of 2021, based on 45.1 million diluted weighted average common shares outstanding.
Adjusted EBITDA was $4.8 million, compared to $0.5 million in the second quarter of 2021.
Cash flow from operations was an outflow of $(9.9) million, compared to an outflow of $(5.1) million for the second quarter of 2021.
Adjusted free cash flow was an outflow of $(7.6) million compared to an outflow of $(9.0) million for the second quarter of 2021.
 

Financial Outlook

Based on information available as of today, Everbridge is issuing guidance for the third quarter and full year 2022 as indicated below.

 

 

 

 

 

 

 

 

 

 

 

 

 

Full Year 2022 Guidance

 

 

Third Quarter 2022

 

 

Full Year 2022

 

 

Issued May 9, 2022

 

Revenue

$

110.6

 

to

$

111.0

 

 

$

428.2

 

to

$

432.8

 

 

$

428.2

 

to

$

432.8

 

Revenue growth

 

14

%

 

 

15

%

 

 

16

%

 

 

17

%

 

 

16

%

 

 

17

%

GAAP net loss

$

(27.5

)

 

$

(27.1

)

 

$

(112.5

)

 

$

(110.5

)

 

$

(135.0

)

 

$

(133.0

)

GAAP net loss per share

$

(0.68

)

 

$

(0.67

)

 

$

(2.80

)

 

$

(2.75

)

 

$

(3.38

)

 

$

(3.33

)

Non-GAAP net income

$

7.5

 

 

$

7.9

 

 

$

15.7

 

 

$

17.7

 

 

$

10.7

 

 

$

12.7

 

Non-GAAP net income per share

$

0.16

 

 

$

0.17

 

 

$

0.33

 

 

$

0.38

 

 

$

0.23

 

 

$

0.27

 

Adjusted EBITDA

$

13.5

 

 

$

13.9

 

 

$

37.0

 

 

$

39.0

 

 

$

33.5

 

 

$

35.5

 

(All figures in millions, except per share data)

Conference Call Information

 

What:

Everbridge's Second Quarter 2022 Financial Results Conference Call

When:

Tuesday, August 9, 2022

Time:

4:30 p.m. ET

Live Call:

(833) 685-0904, Domestic

 

(412) 317-5740, International

Replay:

(877) 344-7529, Passcode 5990681, Domestic

 

(412) 317-0088, Passcode 5990681, International

Webcast :

https://edge.media-server.com/mmc/p/2nagbbnr (live and replay)

About Everbridge

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, product recalls or supply-chain interruptions, over 6,300 customers in 76 countries 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 modalities, and track progress on executing response plans. 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, EBITDA, adjusted EBITDA, free cash flow, and adjusted free cash flow.

Non-GAAP operating income/(loss) excludes amortization of acquired intangible assets, change in fair value of contingent consideration, stock-based compensation and costs related to the 2022 Strategic Realignment. Non-GAAP net income/(loss) excludes amortization of acquired intangible assets, change in fair value of contingent consideration, stock-based compensation, costs related to the 2022 Strategic Realignment, accretion of interest on convertible senior notes, gain/(loss) on extinguishment of debt and capped call modification and the tax impact of such adjustments. EBITDA represents net income/(loss) before interest income and interest expense, income tax expense and benefit and depreciation and amortization expense. Adjusted EBITDA represents EBITDA as further adjusted for gain/(loss) on extinguishment of debt and capped call modification, change in fair value of contingent consideration, stock-based compensation expense and costs related to the 2022 Strategic Realignment. Free cash flow represents cash provided by (used in) operating activities minus cash used for capital expenditures and capitalized software development costs. Adjusted free cash flow represents free cash flow as further adjusted for cash payments for the 2022 Strategic Realignment.

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 2022 and the full fiscal year 2022. 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; the success of the 2022 Strategic Realignment; 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 Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2022 filed with the SEC on May 9, 2022 and our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 25, 2022. 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,

 

 

2022

 

 

2021

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

$

474,634

 

 

$

488,035

 

Restricted cash

 

2,029

 

 

 

3,880

 

Accounts receivable, net

 

97,781

 

 

 

120,995

 

Prepaid expenses

 

15,948

 

 

 

13,740

 

Deferred costs and other current assets

 

28,159

 

 

 

28,469

 

Total current assets

 

618,551

 

 

 

655,119

 

Property and equipment, net

 

10,688

 

 

 

12,185

 

Capitalized software development costs, net

 

25,547

 

 

 

22,720

 

Goodwill

 

507,818

 

 

 

531,163

 

Intangible assets, net

 

192,711

 

 

 

219,319

 

Restricted cash

 

816

 

 

 

843

 

Prepaid expenses

 

1,776

 

 

 

1,916

 

Deferred costs and other assets

 

31,822

 

 

 

35,750

 

Total assets

$

1,389,729

 

 

$

1,479,015

 

Current liabilities:

 

 

 

 

 

Accounts payable

$

11,240

 

 

$

16,002

 

Accrued payroll and employee related liabilities

 

28,542

 

 

 

36,725

 

Accrued expenses

 

14,761

 

 

 

13,884

 

Deferred revenue

 

221,782

 

 

 

223,579

 

Convertible senior notes

 

8

 

 

 

8

 

Other current liabilities

 

13,442

 

 

 

14,132

 

Total current liabilities

 

289,775

 

 

 

304,330

 

Long-term liabilities:

 

 

 

 

 

Deferred revenue, noncurrent

 

11,452

 

 

 

14,261

 

Convertible senior notes

 

810,855

 

 

 

665,695

 

Deferred tax liabilities

 

3,798

 

 

 

16,082

 

Other long-term liabilities

 

10,558

 

 

 

15,958

 

Total liabilities

 

1,126,438

 

 

 

1,016,326

 

Stockholders' equity:

 

 

 

 

 

Common stock

 

40

 

 

 

39

 

Additional paid-in capital

 

690,903

 

 

 

853,664

 

Accumulated deficit

 

(396,205

)

 

 

(388,112

)

Accumulated other comprehensive loss

 

(31,447

)

 

 

(2,902

)

Total stockholders' equity

 

263,291

 

 

 

462,689

 

Total liabilities and stockholders' equity

$

1,389,729

 

 

$

1,479,015

 

 

 


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,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenue

$

102,986

 

 

$

86,649

 

 

$

203,361

 

 

$

168,859

 

Cost of revenue

 

33,239

 

 

 

27,665

 

 

 

65,096

 

 

 

52,945

 

Gross profit

 

69,747

 

 

 

58,984

 

 

 

138,265

 

 

 

115,914

 

 

 

67.72

%

 

 

68.07

%

 

 

67.99

%

 

 

68.65

%

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

45,359

 

 

 

41,483

 

 

 

87,175

 

 

 

76,010

 

Research and development

 

26,619

 

 

 

20,251

 

 

 

50,178

 

 

 

38,330

 

General and administrative

 

27,093

 

 

 

24,664

 

 

 

49,429

 

 

 

47,226

 

Restructuring

 

6,742

 

 

 

 

 

 

6,742

 

 

 

 

Total operating expenses

 

105,813

 

 

 

86,398

 

 

 

193,524

 

 

 

161,566

 

Operating loss

 

(36,066

)

 

 

(27,414

)

 

 

(55,259

)

 

 

(45,652

)

Other expense, net:

 

 

 

 

 

 

 

 

 

 

 

Interest and investment income

 

679

 

 

 

100

 

 

 

741

 

 

 

233

 

Interest expense

 

(1,307

)

 

 

(9,655

)

 

 

(2,607

)

 

 

(16,215

)

Loss on extinguishment of convertible notes and capped call modification

 

 

 

 

(37

)

 

 

 

 

 

(2,925

)

Other income (expense), net

 

(189

)

 

 

(602

)

 

 

91

 

 

 

(651

)

Total other expense, net

 

(817

)

 

 

(10,194

)

 

 

(1,775

)

 

 

(19,558

)

Loss before income taxes

 

(36,883

)

 

 

(37,608

)

 

 

(57,034

)

 

 

(65,210

)

Benefit from income taxes

 

701

 

 

 

3,787

 

 

 

1,779

 

 

 

9,600

 

Net loss

$

(36,182

)

 

$

(33,821

)

 

$

(55,255

)

 

$

(55,610

)

Net loss per share attributable to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

Basic

$

(0.91

)

 

$

(0.89

)

 

$

(1.40

)

 

$

(1.49

)

Diluted

$

(0.91

)

 

$

(0.89

)

 

$

(1.40

)

 

$

(1.49

)

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

39,571,647

 

 

 

38,014,107

 

 

 

39,501,058

 

 

 

37,204,958

 

Diluted

 

39,571,647

 

 

 

38,014,107

 

 

 

39,501,058

 

 

 

37,204,958

 

Other comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

(23,185

)

 

 

1,231

 

 

 

(28,545

)

 

 

(1,366

)

Total comprehensive loss

$

(59,367

)

 

$

(32,590

)

 

$

(83,800

)

 

$

(56,976

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense included in the above:

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Cost of revenue

$

1,442

 

 

$

819

 

 

$

2,259

 

 

$

1,818

 

Sales and marketing

 

6,311

 

 

 

5,579

 

 

 

7,606

 

 

 

9,321

 

Research and development

 

4,231

 

 

 

2,562

 

 

 

5,954

 

 

 

4,590

 

General and administrative

 

4,227

 

 

 

6,545

 

 

 

6,476

 

 

 

12,461

 

Total stock-based compensation

$

16,211

 

 

$

15,505

 

 

$

22,295

 

 

$

28,190

 

 

 


Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

Net loss

$

(36,182

)

 

$

(33,821

)

 

$

(55,255

)

 

$

(55,610

)

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

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

15,257

 

 

 

13,011

 

 

 

30,691

 

 

 

23,854

 

Amortization of deferred costs

 

4,777

 

 

 

3,462

 

 

 

8,740

 

 

 

7,184

 

(Gain) loss on disposal of assets

 

934

 

 

 

(1

)

 

 

934

 

 

 

(1

)

Deferred income taxes

 

(1,015

)

 

 

(3,077

)

 

 

(7,568

)

 

 

(9,778

)

Accretion of interest on convertible senior notes

 

1,166

 

 

 

9,508

 

 

 

2,324

 

 

 

15,821

 

Loss on extinguishment of convertible notes and capped call modification

 

 

 

 

37

 

 

 

 

 

 

2,925

 

Provision for credit losses and sales reserve

 

65

 

 

 

343

 

 

 

278

 

 

 

1,905

 

Stock-based compensation

 

16,211

 

 

 

15,505

 

 

 

22,295

 

 

 

28,190

 

Other non-cash adjustments

 

(5

)

 

 

116

 

 

 

(57

)

 

 

(31

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

11,611

 

 

 

7,830

 

 

 

23,031

 

 

 

19,312

 

Prepaid expenses

 

379

 

 

 

299

 

 

 

(2,068

)

 

 

(922

)

Deferred costs

 

(4,309

)

 

 

(4,657

)

 

 

(10,530

)

 

 

(8,107

)

Other assets

 

4,404

 

 

 

1,918

 

 

 

6,223

 

 

 

(850

)

Accounts payable

 

1,937

 

 

 

851

 

 

 

(4,187

)

 

 

(60

)

Accrued payroll and employee related liabilities

 

(6,109

)

 

 

(3,190

)

 

 

(7,971

)

 

 

(5,320

)

Accrued expenses

 

(1,409

)

 

 

(2,041

)

 

 

1,837

 

 

 

971

 

Deferred revenue

 

(12,562

)

 

 

(8,553

)

 

 

(4,526

)

 

 

(180

)

Other liabilities

 

(5,074

)

 

 

(2,677

)

 

 

(6,413

)

 

 

(4,632

)

Net cash provided by (used in) operating activities

 

(9,924

)

 

 

(5,137

)

 

 

(2,222

)

 

 

14,671

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

(879

)

 

 

(316

)

 

 

(2,726

)

 

 

(2,128

)

Payments for acquisition of business, net of acquired cash

 

 

 

 

(165,265

)

 

 

(47

)

 

 

(197,666

)

Additions to capitalized software development costs

 

(3,106

)

 

 

(3,587

)

 

 

(7,436

)

 

 

(6,082

)

Net cash used in investing activities

 

(3,985

)

 

 

(169,168

)

 

 

(10,209

)

 

 

(205,876

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of convertible notes

 

 

 

 

 

 

 

 

 

 

375,000

 

Payments of debt issuance costs

 

 

 

 

(829

)

 

 

 

 

 

(10,391

)

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

 

Shares withheld to settle employee tax withholding liability

 

(1,724

)

 

 

(1,233

)

 

 

(2,295

)

 

 

(2,843

)

Proceeds from employee stock purchase plan

 

 

 

 

 

 

 

1,702

 

 

 

2,451

 

Proceeds from stock option exercises

 

65

 

 

 

559

 

 

 

82

 

 

 

2,163

 

Other

 

(19

)

 

 

 

 

 

(38

)

 

 

 

Net cash provided by (used in) financing activities

 

(1,678

)

 

 

(1,503

)

 

 

(549

)

 

 

283,289

 

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

 

(1,943

)

 

 

903

 

 

 

(2,299

)

 

 

588

 

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

 

(17,530

)

 

 

(174,905

)

 

 

(15,279

)

 

 

92,672

 

Cash, cash equivalents and restricted cash—beginning of period

 

495,009

 

 

 

743,207

 

 

 

492,758

 

 

 

475,630

 

Cash, cash equivalents and restricted cash—end of period

$

477,479

 

 

$

568,302

 

 

$

477,479

 

 

$

568,302

 

 


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,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Cost of revenue

$

33,239

 

 

$

27,665

 

 

$

65,096

 

 

$

52,945

 

Amortization of acquired intangibles

 

(3,114

)

 

 

(2,978

)

 

 

(6,265

)

 

 

(5,582

)

Stock-based compensation

 

(1,442

)

 

 

(819

)

 

 

(2,259

)

 

 

(1,818

)

2022 Strategic Realignment

 

(435

)

 

 

 

 

 

(435

)

 

 

 

Non-GAAP cost of revenue

$

28,248

 

 

$

23,868

 

 

$

56,137

 

 

$

45,545

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

$

69,747

 

 

$

58,984

 

 

$

138,265

 

 

$

115,914

 

Amortization of acquired intangibles

 

3,114

 

 

 

2,978

 

 

 

6,265

 

 

 

5,582

 

Stock-based compensation

 

1,442

 

 

 

819

 

 

 

2,259

 

 

 

1,818

 

2022 Strategic Realignment

 

435

 

 

 

 

 

 

435

 

 

 

 

Non-GAAP gross profit

$

74,738

 

 

$

62,781

 

 

$

147,224

 

 

$

123,314

 

Non-GAAP gross margin

 

72.6

%

 

 

72.5

%

 

 

72.4

%

 

 

73.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

$

45,359

 

 

$

41,483

 

 

$

87,175

 

 

$

76,010

 

Stock-based compensation

 

(6,311

)

 

 

(5,579

)

 

 

(7,606

)

 

 

(9,321

)

2022 Strategic Realignment

 

(208

)

 

 

 

 

 

(208

)

 

 

 

Non-GAAP sales and marketing

$

38,840

 

 

$

35,904

 

 

$

79,361

 

 

$

66,689