8-K
0001437352false00014373522023-08-082023-08-08

 

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 08, 2023

 

 

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

 

Not Applicable

(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 8, 2023, Everbridge, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2023. 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 8, 2023

 

 

 

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 8, 2023

By:

/s/ Noah F. Webster

Noah F. Webster

Chief Legal and Compliance Officer

 

 


EX-99.1

Exhibit 99.1

Everbridge Announces Second Quarter 2023 Financial Results

Company Delivers Solid Second Quarter Revenue and Improved Profitability

BURLINGTON, Mass – August 8, 2023 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, 2023. Revenue for the second quarter was up 7% year-over-year to $110.6 million, and GAAP net loss improved to $(15.1) million from $(36.2) million.

“We delivered solid second quarter results as we continue to improve our overall operating efficiency,” said David Wagner, President and CEO of Everbridge. “In the second quarter, we sequentially increased ARR and further expanded our adjusted EBITDA margins. We have focused our product development efforts on our core CEM platform, achieving several key delivery milestones that are improving customer value and satisfaction. Based on the resilience and strength of our recurring model and high customer satisfaction, we remain on track to execute toward our goal of reaching the ‘Rule of 40’ by 2027.”

Patrick Brickley, Executive Vice President and Chief Financial Officer of Everbridge, added, “We continue to make solid progress towards our strategic objectives of driving ARR and subscription revenue, which grew year-over-year by 9% and 8% during the quarter, respectively. However, we also continue to experience headwinds booking large and especially perpetual revenue contracts. This dynamic is reflected in our updated revenue guidance for the second half of 2023. In addition, we further tightened our cost structure, giving us confidence in our adjusted EBITDA target of $85 million dollars for 2023.”

Second Quarter 2023 Financial Highlights

Total revenue was $110.6 million, an increase of 7% compared to $103.0 million for the second quarter of 2022.
GAAP operating loss was $(15.4) million, compared to $(36.1) million for the second quarter of 2022.
Non-GAAP operating income was $12.7 million, compared to $1.0 million for the second quarter of 2022.
GAAP net loss was $(15.1) million, compared to $(36.2) million for the second quarter of 2022. GAAP diluted net loss per share was $(0.37), based on 40.6 million diluted weighted average common shares outstanding, compared to $(0.91) for the second quarter of 2022, based on 39.6 million diluted weighted average common shares outstanding.
Non-GAAP net income was $13.4 million, compared to $1.5 million in the second quarter of 2022. Non-GAAP diluted net income per share was $0.31, based on 43.9 million diluted weighted average common shares outstanding, compared to $0.03 for the second quarter of 2022, based on 46.0 million diluted weighted average common shares outstanding.
Adjusted EBITDA was $18.3 million, compared to $4.8 million in the second quarter of 2022.
Cash flow from operations was an inflow of $5.4 million, compared to an outflow of $(9.9) million for the second quarter of 2022.
Adjusted for one-time cash payments related to our 2022 Strategic Realignment program, Adjusted Free Cash Flow was an inflow of $1.6 million for the second quarter of 2023.


Recent Business Highlights

Annualized Recurring Revenue (ARR) was $395 million, up 9% year-over-year.
CEM customer count increased to 373, up 38 sequentially and 67% year-over-year.
Announced the Caribbean nation of Trinidad and Tobago deployed the Company’s public alerting software to help keep residents and visitors safe and informed in the event of an emergency.
Supported U.S. state and local governments as smoke from ongoing wildfires in Canada engulfed the skies over large parts of the country, prompting dangerous air quality conditions.
Became a Sector Member of the International Telecommunications Union (ITU) development sector, advocating for and collaborating on cell-broadcast public warning technology as the most effective means to reach citizens in an emergency.
Expanded partnership with Samdesk, the leader in AI-powered crisis detection. Samdesk now integrates directly with Everbridge Visual Command Center (VCC) providing corporate security teams with comprehensive situational intelligence before, during, and after critical events.
Joined the United Nations Office for Disaster Risk Reduction (UNDRR) Private Sector Alliance for Disaster Resilient Societies (ARISE). Everbridge attended the Midterm Review of the Sendai Framework at the United Nations headquarters in New York, showcasing its organizational resilience solutions.

Financial Outlook

Based on information available as of today, Everbridge is issuing guidance for the third quarter and full year 2023 as indicated below.

 

 

 

 

 

 

 

 

 

 

 

 

 

Full Year 2023 Guidance

 

 

Third Quarter 2023

 

 

Full Year 2023

 

 

Issued May 9, 2023

 

Revenue

$

113.5

 

to

$

114.0

 

 

$

450.0

 

to

$

452.0

 

 

$

456.0

 

to

$

462.0

 

Revenue growth

 

2

%

 

 

2

%

 

 

4

%

 

 

5

%

 

 

6

%

 

 

7

%

GAAP net loss

$

(9.4

)

 

$

(8.9

)

 

$

(43.7

)

 

$

(41.7

)

 

$

(47.6

)

 

$

(45.6

)

GAAP net loss per share

$

(0.23

)

 

$

(0.22

)

 

$

(1.07

)

 

$

(1.02

)

 

$

(1.17

)

 

$

(1.12

)

Non-GAAP net income

$

18.5

 

 

$

19.0

 

 

$

65.8

 

 

$

67.8

 

 

$

65.8

 

 

$

67.8

 

Non-GAAP net income per share

$

0.42

 

 

$

0.43

 

 

$

1.48

 

 

$

1.52

 

 

$

1.48

 

 

$

1.52

 

Adjusted EBITDA

$

23.0

 

 

$

23.5

 

 

$

84.0

 

 

$

86.0

 

 

$

84.0

 

 

$

86.0

 

(All figures in millions, except per share data)

Conference Call Information

What:

Everbridge’s Second Quarter 2023 Financial Results Conference Call

When:

Tuesday, August 8, 2023

Time:

8:30 a.m. ET

Live Call:

(833) 685-0904, Domestic

(412) 317-5740, International

Replay:

(877) 344-7529, Passcode 3077415, Domestic

(412) 317-0088, Passcode 3077415, International

Webcast:

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

About Everbridge

Everbridge (Nasdaq: EVBG) empowers enterprises and government organizations to anticipate, mitigate, respond to, and recover stronger from critical events. In today’s unpredictable world, resilient organizations minimize impact to people and operations, absorb stress, and return to productivity faster when deploying critical event management (CEM) technology. Everbridge digitizes organizational resilience by combining intelligent automation with the industry’s most comprehensive risk data to Keep People Safe and Organizations Running™. For more information, visit https://www.everbridge.com/, read the company blog, and follow on Twitter. Everbridge… Empowering Resilience.

Key Performance Metric

Annualized Recurring Revenue (ARR) is defined as the expected recurring revenue in the next twelve months from active customer contracts, assuming no increases or reductions in the subscriptions from that cohort of customers. Investors should not place undue reliance on ARR as an indicator of future or expected results. Our presentation of this metric may differ from similarly titled metrics presented by other companies and therefore comparability may be limited.

Non-GAAP Financial Measures

This press release contains the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income/(loss), non-GAAP net income/(loss), non-GAAP net income/(loss) per share, EBITDA, adjusted EBITDA, free cash flow, adjusted free cash flow and adjusted EBITDA margin.

Non-GAAP operating income/(loss) excludes amortization of acquired intangible assets, stock-based compensation, costs related to the 2022 Strategic Realignment and change in fair value of contingent consideration. Non-GAAP net income/(loss) excludes amortization of acquired intangible assets, stock-based compensation, costs related to the 2022 Strategic Realignment, change in fair value of contingent consideration, accretion of interest on convertible senior notes, gain (loss) on extinguishment of debt, capped call modification and change in fair value 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 stock-based compensation expense, costs related to the 2022 Strategic Realignment, change in fair value of contingent consideration and gain (loss) on extinguishment of debt, capped call modification and change in fair value. 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 anticipated impact on financial results for the third quarter of 2023 and the full fiscal year 2023. 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 successfully integrate businesses and assets that we may acquire; 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; 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, 2022 filed with the SEC on February 24, 2023 and other subsequent filings with the SEC. 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,

 

 

2023

 

 

2022

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

$

218,944

 

 

$

198,725

 

Restricted cash

 

2,124

 

 

 

2,046

 

Accounts receivable, net

 

96,682

 

 

 

119,986

 

Prepaid expenses

 

14,071

 

 

 

13,133

 

Assets held for sale

 

 

 

 

6,485

 

Deferred costs and other current assets

 

37,165

 

 

 

31,866

 

Total current assets

 

368,986

 

 

 

372,241

 

Property and equipment, net

 

8,658

 

 

 

8,993

 

Capitalized software development costs, net

 

29,169

 

 

 

27,370

 

Goodwill

 

513,138

 

 

 

508,781

 

Intangible assets, net

 

147,642

 

 

 

166,177

 

Restricted cash

 

814

 

 

 

823

 

Prepaid expenses

 

1,307

 

 

 

1,709

 

Deferred costs and other assets

 

42,317

 

 

 

39,570

 

Total assets

$

1,112,031

 

 

$

1,125,664

 

Current liabilities:

 

 

 

 

 

Accounts payable

$

9,589

 

 

$

10,854

 

Accrued payroll and employee related liabilities

 

24,982

 

 

 

31,175

 

Accrued expenses

 

9,712

 

 

 

13,566

 

Deferred revenue

 

229,173

 

 

 

233,106

 

Liabilities held for sale

 

 

 

 

2,062

 

Other current liabilities

 

8,793

 

 

 

10,644

 

Total current liabilities

 

282,249

 

 

 

301,407

 

Long-term liabilities:

 

 

 

 

 

Deferred revenue, noncurrent

 

8,333

 

 

 

9,278

 

Convertible senior notes

 

501,736

 

 

 

500,298

 

Deferred tax liabilities

 

5,429

 

 

 

6,236

 

Other long-term liabilities

 

18,577

 

 

 

19,334

 

Total liabilities

 

816,324

 

 

 

836,553

 

Stockholders' equity:

 

 

 

 

 

Common stock

 

41

 

 

 

40

 

Additional paid-in capital

 

752,699

 

 

 

721,143

 

Accumulated deficit

 

(431,822

)

 

 

(402,124

)

Accumulated other comprehensive loss

 

(25,211

)

 

 

(29,948

)

Total stockholders' equity

 

295,707

 

 

 

289,111

 

Total liabilities and stockholders' equity

$

1,112,031

 

 

$

1,125,664

 

 


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,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Revenue

$

110,569

 

 

$

102,986

 

 

$

218,837

 

 

$

203,361

 

Cost of revenue

 

33,091

 

 

 

33,239

 

 

 

65,072

 

 

 

65,096

 

Gross profit

 

77,478

 

 

 

69,747

 

 

 

153,765

 

 

 

138,265

 

Gross margin

 

70.07

%

 

 

67.72

%

 

 

70.26

%

 

 

67.99

%

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

42,669

 

 

 

45,359

 

 

 

84,857

 

 

 

87,175

 

Research and development

 

24,613

 

 

 

26,619

 

 

 

49,617

 

 

 

50,178

 

General and administrative

 

24,963

 

 

 

27,093

 

 

 

49,429

 

 

 

49,429

 

Restructuring

 

664

 

 

 

6,742

 

 

 

685

 

 

 

6,742

 

Total operating expenses

 

92,909

 

 

 

105,813

 

 

 

184,588

 

 

 

193,524

 

Operating loss

 

(15,431

)

 

 

(36,066

)

 

 

(30,823

)

 

 

(55,259

)

Other income (expense), net

 

 

 

 

 

 

 

 

 

 

 

Interest and investment income

 

2,285

 

 

 

679

 

 

 

4,022

 

 

 

741

 

Interest expense

 

(765

)

 

 

(1,307

)

 

 

(1,534

)

 

 

(2,607

)

Other income (expense), net

 

128

 

 

 

(189

)

 

 

746

 

 

 

91

 

Total other income (expense), net

 

1,648

 

 

 

(817

)

 

 

3,234

 

 

 

(1,775

)

Loss before income taxes

 

(13,783

)

 

 

(36,883

)

 

 

(27,589

)

 

 

(57,034

)

(Provision for) benefit from income taxes

 

(1,267

)

 

 

701

 

 

 

(2,109

)

 

 

1,779

 

Net loss

$

(15,050

)

 

$

(36,182

)

 

$

(29,698

)

 

$

(55,255

)

Net loss per share attributable to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

Basic

$

(0.37

)

 

$

(0.91

)

 

$

(0.73

)

 

$

(1.40

)

Diluted

$

(0.37

)

 

$

(0.91

)

 

$

(0.73

)

 

$

(1.40

)

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

40,551,410

 

 

 

39,571,647

 

 

 

40,413,506

 

 

 

39,501,058

 

Diluted

 

40,551,410

 

 

 

39,571,647

 

 

 

40,413,506

 

 

 

39,501,058

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

     Foreign currency translation adjustment

 

2,311

 

 

 

(23,185

)

 

 

4,737

 

 

 

(28,545

)

Total comprehensive loss

$

(12,739

)

 

$

(59,367

)

 

$

(24,961

)

 

$

(83,800

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense included in the above:

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Cost of revenue

$

1,817

 

 

$

1,469

 

 

$

3,472

 

 

$

2,298

 

Sales and marketing

 

6,201

 

 

 

6,561

 

 

 

10,948

 

 

 

7,905

 

Research and development

 

3,770

 

 

 

3,796

 

 

 

7,496

 

 

 

5,373

 

General and administrative

 

4,342

 

 

 

4,385

 

 

 

7,663

 

 

 

6,719

 

Total stock-based compensation

$

16,130

 

 

$

16,211

 

 

$

29,579

 

 

$

22,295

 

 


Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

Net loss

$

(15,050

)

 

$

(36,182

)

 

$

(29,698

)

 

$

(55,255

)

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

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

14,884

 

 

 

15,257

 

 

 

29,658

 

 

 

30,691

 

Amortization of deferred costs

 

4,978

 

 

 

4,777

 

 

 

9,492

 

 

 

8,740

 

Deferred income taxes

 

(204

)

 

 

(1,015

)

 

 

(705

)

 

 

(7,568

)

Accretion of interest on convertible senior notes

 

723

 

 

 

1,166

 

 

 

1,438

 

 

 

2,324

 

(Gain) loss on disposal of assets

 

 

 

 

934

 

 

 

(352

)

 

 

934

 

Provision for credit losses and sales reserve

 

691

 

 

 

65

 

 

 

2,326

 

 

 

278

 

Stock-based compensation

 

16,130

 

 

 

16,211

 

 

 

29,579

 

 

 

22,295

 

Other non-cash adjustments

 

 

 

 

(5

)

 

 

 

 

 

(57

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

9,083

 

 

 

11,611

 

 

 

21,077

 

 

 

23,031

 

Prepaid expenses

 

1,853

 

 

 

379

 

 

 

(612

)

 

 

(2,068

)

Deferred costs

 

(7,339

)

 

 

(4,309

)

 

 

(13,248

)

 

 

(10,530

)

Other assets

 

(3,232

)

 

 

4,404

 

 

 

(3,829

)

 

 

6,223

 

Accounts payable

 

798

 

 

 

1,937

 

 

 

(934

)

 

 

(4,187

)

Accrued payroll and employee related liabilities

 

(4,541

)

 

 

(6,109

)

 

 

(6,193

)

 

 

(7,971

)

Accrued expenses

 

(3,715

)

 

 

(1,409

)

 

 

(4,512

)

 

 

1,837

 

Deferred revenue

 

(8,762

)

 

 

(12,562

)

 

 

(5,173

)

 

 

(4,526

)

Other liabilities

 

(927

)

 

 

(5,074

)

 

 

(2,369

)

 

 

(6,413

)

Net cash provided by (used in) operating activities

 

5,370

 

 

 

(9,924

)

 

 

25,945

 

 

 

(2,222

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

(1,604

)

 

 

(879

)

 

 

(2,179

)

 

 

(2,726

)

Proceeds from sale of assets

 

79

 

 

 

 

 

 

4,368

 

 

 

 

Payment for acquisition of business, net of acquired cash

 

 

 

 

 

 

 

 

 

 

(47

)

Additions to capitalized software development costs

 

(3,757

)

 

 

(3,106

)

 

 

(7,869

)

 

 

(7,436

)

Net cash used in investing activities

 

(5,282

)

 

 

(3,985

)

 

 

(5,680

)

 

 

(10,209

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

Payments associated with shares withheld to settle employee tax withholding liability

 

(1,823

)

 

 

(1,724

)

 

 

(3,689

)

 

 

(2,295

)

Proceeds from employee stock purchase plan

 

 

 

 

 

 

 

2,546

 

 

 

1,702

 

Proceeds from stock option exercises

 

12

 

 

 

65

 

 

 

1,275

 

 

 

82

 

Other

 

(19

)

 

 

(19

)

 

 

(38

)

 

 

(38

)

Net cash provided by (used in) financing activities

 

(1,830

)

 

 

(1,678

)

 

 

94

 

 

 

(549

)

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

 

(134

)

 

 

(1,943

)

 

 

(71

)

 

 

(2,299

)

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

 

(1,876

)

 

 

(17,530

)

 

 

20,288

 

 

 

(15,279

)

Cash, cash equivalents and restricted cash—beginning of period

 

223,758

 

 

 

495,009

 

 

 

201,594

 

 

 

492,758

 

Cash, cash equivalents and restricted cash—end of period

$

221,882

 

 

$

477,479

 

 

$

221,882

 

 

$

477,479

 

 


Reconciliation of GAAP measures to non-GAAP measures

(unaudited)

The following table reconciles our GAAP gross profit to non-GAAP gross profit (in thousands):

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Gross profit

$

77,478

 

 

$

69,747

 

 

$

153,765

 

 

$

138,265

 

Amortization of acquired intangibles

 

2,165

 

 

 

3,114

 

 

 

4,550

 

 

 

6,265

 

Stock-based compensation

 

1,817

 

 

 

1,469

 

 

 

3,472

 

 

 

2,298

 

2022 Strategic Realignment

 

324

 

 

 

435

 

 

 

665

 

 

 

435

 

Non-GAAP gross profit

$

81,784

 

 

$

74,765

 

 

$

162,452

 

 

$

147,263

 

The following table reconciles our GAAP gross margin to non-GAAP gross margin(1):

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Gross margin

 

70.1

%

 

 

67.7

%

 

 

70.3

%

 

 

68.0

%

Amortization of acquired intangibles margin

 

2.0

%

 

 

3.0

%

 

 

2.1

%

 

 

3.1

%

Stock-based compensation margin

 

1.6

%

 

 

1.4

%

 

 

1.6

%

 

 

1.1

%

2022 Strategic Realignment margin

 

0.3

%

 

 

0.4

%

 

 

0.3

%

 

 

0.2

%

Non-GAAP gross margin

 

74.0

%

 

 

72.6

%

 

 

74.2

%

 

 

72.4

%

(1) Columns may not add up due to rounding.

The following table reconciles our GAAP operating loss to non-GAAP operating income (loss) (in thousands):

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Operating loss

$

(15,431

)

 

$

(36,066

)

 

$

(30,823

)

 

$

(55,259

)

Amortization of acquired intangibles

 

9,361

 

 

 

11,262

 

 

 

19,009

 

 

 

22,800

 

Stock-based compensation

 

16,130

 

 

 

16,211

 

 

 

29,579

 

 

 

22,295

 

2022 Strategic Realignment

 

2,599

 

 

 

9,594

 

 

 

5,004

 

 

 

9,594

 

Change in fair value of contingent consideration

 

 

 

 

(5

)

 

 

 

 

 

(57

)

Non-GAAP operating income (loss)

$

12,659

 

 

$

996

 

 

$

22,769

 

 

$

(627

)

The following table reconciles our GAAP net loss to non-GAAP net income (in thousands):

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net loss

$

(15,050

)