Paycom Software, Inc. Reports Fourth Quarter and Year-End 2020 Results
Full Year Revenues of
Full Year GAAP Net Income of
Full Year Adjusted EBITDA of
Fourth Quarter Revenues of
“Our strong finish to 2020 further validates our differentiated employee usage strategy and the real-time ROI it provides businesses,” said Paycom’s founder and CEO,
Financial Highlights for the Fourth Quarter of 2020
Total Revenues of
GAAP Net Income was
Non-GAAP Net Income1was
Adjusted EBITDA1 was
Cash and Cash Equivalents were
Total Debt, Net was
Financial Highlights for the Full Year 2020
Total Revenues of
GAAP Net Income was
Non-GAAP Net Income1was
Adjusted EBITDA1 was
1 Adjusted EBITDA and non-GAAP net income are non-GAAP financial measures. Please see the discussion below under the heading "Use of Non-GAAP Financial Information" and the reconciliations at the end of this release for additional information concerning these and other non-GAAP financial measures.
Business Highlights
- Paycom maintained an annual revenue retention rate of 93%, even with the pandemic causing some businesses to close and a reduction in employee revenue at existing clients.
- Record product adoption of Manager on-the-GoTM introduced at the beginning of 2020, and employee usage at all-time high, as measured by Direct Data ExchangeTM.
-
Paycom earned a Top 5 ranking in Best Places to Work in the US by Top Workplaces, and the No. 1 spot in
Oklahoma , and was named to the Fortune 100 Fastest Growing Companies for the 4th consecutive year. -
Full year total client count expanded to 30,994 as of
December 31, 2020 , up 17% from the prior year-end. On a parent company grouping basis, client count as ofDecember 31, 2020 expanded to 16,063, up 18% from the prior year-end.
Financial Outlook
Paycom provides the following expected financial guidance for the quarter ending
Quarter Ending
Total Revenues in the range of
Adjusted EBITDA in the range of
Year Ending
Total Revenues in the range of
Adjusted EBITDA in the range of
We have not reconciled the forward-looking adjusted EBITDA ranges presented above and discussed on the teleconference call to net income, nor the forward-looking adjusted EBITDA margins and forward-looking non-GAAP effective income tax rate discussed on the teleconference call to comparable GAAP measures, because applicable information for future periods, on which these reconciliations would be based, are not readily available due to uncertainty regarding, and the potential variability of, depreciation and amortization, interest expense, taxes, non-cash stock-based compensation expense, change in fair value of our interest rate swap and other items. Accordingly, reconciliations of the forward-looking adjusted EBITDA ranges to net income, the forward-looking adjusted EBITDA margins to net income margin and the forward-looking non-GAAP effective income tax rate to the GAAP effective income tax rate are not available at this time without unreasonable effort. During the teleconference call, we also refer to a forward-looking estimate of our implied revenue growth plus adjusted EBITDA margin for 2021, or the “Rule of 60.” Because we are unable to reconcile forward-looking adjusted EBITDA margin to net income margin without unreasonable effort, we are unable to reconcile the “Rule of 60” to a comparable GAAP measure without unreasonable effort.
Impact of the COVID-19 Pandemic
During the fourth quarter of 2020, we maintained the work-from-home arrangements implemented in March for the safety of our employees, while simultaneously ensuring our clients continued to receive the same level of service they have come to expect from our dedicated, one-on-one customer service model. As of
- The COVID-19 pandemic has resulted in, and may continue to result in, headcount reductions across our client base. Because we charge our clients on a per-employee basis for certain services we provide, decreased headcount at our clients negatively impacted our recurring revenue in the fourth quarter of 2020, and we expect that our recurring revenue in future periods will continue to be negatively impacted by such headcount reductions until employment levels among our client base at the onset of the pandemic return to pre-pandemic levels.
-
Despite growth in the number of clients in our base, employee headcount reductions at our clients as well as clients electing to defer payment of their share of
Social Security taxes under the CARES Act resulted in nominal growth in our average funds held for clients balance in the fourth quarter of 2020, relative to the fourth quarter of 2019. Significantly lower average interest rates in 2020 had a negative effect on interest earned on funds held for clients and, consequently, recurring revenue growth in the fourth quarter of 2020. - Our solution allows clients to seamlessly manage and communicate with their remote workforces. In the current work-from-home environment, our clients are recognizing the benefits of our focus on employee usage, as well as the strengths and advantages of our single database solution.
- Our sales force continues to conduct all meetings with current and prospective clients virtually. The shift from in-person to video conference and teleconference sales meetings represents a unique opportunity to meet virtually with a greater number of client prospects in a given day than through in-person meetings.
Use of Non-GAAP Financial Information
To supplement our financial information presented in accordance with generally accepted accounting principles in
The non-GAAP financial measures presented in this press release and discussed on the related teleconference call are not measures of financial performance under GAAP and should not be considered a substitute for net income, gross profit, gross margin, research and development expenses, sales and marketing expenses, administrative expenses and total research and development costs. Non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performance, you should not consider these non-GAAP financial measures in isolation, or as a substitute for the consolidated statements of income data prepared in accordance with GAAP. The non-GAAP financial measures that we present may not be comparable to similarly titled measures of other companies and other companies may not calculate such measures in the same manner as we do.
Conference Call Details:
In conjunction with this announcement, Paycom will host a conference call today,
About Paycom
As a leader in payroll and HR technology,
Forward-Looking Statements
Certain statements in this press release are, and certain statements on the related teleconference call may be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are any statements that refer to Paycom’s estimated or anticipated results, other non-historical facts or future events and include, but are not limited to, statements regarding our business strategy; anticipated future operating results and operating expenses, cash flows, capital resources, dividends and liquidity; trends, opportunities and risks affecting our business, industry and financial results; future expansion or growth plans and potential for future growth; our ability to attract new clients to purchase our solution; our ability to retain clients and induce them to purchase additional applications; our ability to accurately forecast future revenues and appropriately plan our expenses; market acceptance of our solution and applications; our expectations regarding future revenues generated by certain applications; our ability to attract and retain qualified employees and key personnel; future regulatory, judicial and legislative changes; how certain factors affecting our performance correlate to improvement or deterioration in the labor market; our plan to open additional sales offices and our ability to effectively execute such plan; the sufficiency of our existing cash and cash equivalents to meet our working capital and capital expenditure needs over the next 12 months; the timeline for construction of our new
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Consolidated Balance Sheets |
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(in thousands, except per share amounts) |
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(unaudited) |
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2020 |
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2019 |
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Assets |
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Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
151,710 |
|
|
$ |
133,667 |
|
Accounts receivable |
|
|
9,130 |
|
|
|
9,298 |
|
Prepaid expenses |
|
|
17,854 |
|
|
|
13,561 |
|
Inventory |
|
|
1,151 |
|
|
|
1,158 |
|
Income tax receivable |
|
|
10,447 |
|
|
|
4,020 |
|
Deferred contract costs |
|
|
60,819 |
|
|
|
46,618 |
|
Current assets before funds held for clients |
|
|
251,111 |
|
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|
208,322 |
|
Funds held for clients |
|
|
1,613,494 |
|
|
|
1,662,778 |
|
Total current assets |
|
|
1,864,605 |
|
|
|
1,871,100 |
|
Property and equipment, net |
|
|
285,218 |
|
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|
238,458 |
|
|
|
|
51,889 |
|
|
|
51,889 |
|
Long-term deferred contract costs |
|
|
371,357 |
|
|
|
292,134 |
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Other assets |
|
|
34,843 |
|
|
|
33,336 |
|
Total assets |
|
$ |
2,607,912 |
|
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$ |
2,486,917 |
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Liabilities and Stockholders' Equity |
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Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
6,787 |
|
|
$ |
5,051 |
|
Accrued commissions and bonuses |
|
|
13,703 |
|
|
|
12,343 |
|
Accrued payroll and vacation |
|
|
24,529 |
|
|
|
14,870 |
|
Deferred revenue |
|
|
13,567 |
|
|
|
11,105 |
|
Current portion of long-term debt |
|
|
1,775 |
|
|
|
1,775 |
|
Accrued expenses and other current liabilities |
|
|
44,175 |
|
|
|
45,600 |
|
Current liabilities before client funds obligation |
|
|
104,536 |
|
|
|
90,744 |
|
Client funds obligation |
|
|
1,613,494 |
|
|
|
1,662,778 |
|
Total current liabilities |
|
|
1,718,030 |
|
|
|
1,753,522 |
|
Deferred income tax liabilities, net |
|
|
112,598 |
|
|
|
91,217 |
|
Long-term deferred revenue |
|
|
73,259 |
|
|
|
65,139 |
|
Net long-term debt, less current portion |
|
|
29,119 |
|
|
|
30,858 |
|
Other long-term liabilities |
|
|
19,263 |
|
|
|
19,553 |
|
Total long-term liabilities |
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|
234,239 |
|
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|
206,767 |
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Total liabilities |
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1,952,269 |
|
|
|
1,960,289 |
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Commitments and contingencies |
|
|
|
|
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Stockholders' equity: |
|
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|
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Common stock, |
|
|
618 |
|
|
|
613 |
|
Additional paid-in capital |
|
|
357,908 |
|
|
|
257,501 |
|
Retained earnings |
|
|
719,619 |
|
|
|
576,166 |
|
|
|
|
(422,502 |
) |
|
|
(307,652 |
) |
Total stockholders' equity |
|
|
655,643 |
|
|
|
526,628 |
|
Total liabilities and stockholders' equity |
|
$ |
2,607,912 |
|
|
$ |
2,486,917 |
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Consolidated Statements of Income |
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(in thousands, except per share amounts) |
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(unaudited) |
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Three Months Ended |
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Year Ended |
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2020 |
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2019 |
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2020 |
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2019 |
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Revenues |
|
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|
|
|
|
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|
|
|
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Recurring |
|
$ |
216,747 |
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|
$ |
190,161 |
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|
$ |
825,856 |
|
|
$ |
724,428 |
|
Implementation and other |
|
|
4,200 |
|
|
|
3,248 |
|
|
|
15,578 |
|
|
|
13,243 |
|
Total revenues |
|
|
220,947 |
|
|
|
193,409 |
|
|
|
841,434 |
|
|
|
737,671 |
|
Cost of revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
26,127 |
|
|
|
23,183 |
|
|
|
97,778 |
|
|
|
89,336 |
|
Depreciation and amortization |
|
|
6,903 |
|
|
|
5,615 |
|
|
|
25,768 |
|
|
|
20,411 |
|
Total cost of revenues |
|
|
33,030 |
|
|
|
28,798 |
|
|
|
123,546 |
|
|
|
109,747 |
|
Administrative expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Sales and marketing |
|
|
62,488 |
|
|
|
51,006 |
|
|
|
235,716 |
|
|
|
179,286 |
|
Research and development |
|
|
25,073 |
|
|
|
18,211 |
|
|
|
90,244 |
|
|
|
73,080 |
|
General and administrative |
|
|
56,713 |
|
|
|
29,148 |
|
|
|
178,200 |
|
|
|
127,534 |
|
Depreciation and amortization |
|
|
7,396 |
|
|
|
5,952 |
|
|
|
27,605 |
|
|
|
21,800 |
|
Total administrative expenses |
|
|
151,670 |
|
|
|
104,317 |
|
|
|
531,765 |
|
|
|
401,700 |
|
Total operating expenses |
|
|
184,700 |
|
|
|
133,115 |
|
|
|
655,311 |
|
|
|
511,447 |
|
Operating income |
|
|
36,247 |
|
|
|
60,294 |
|
|
|
186,123 |
|
|
|
226,224 |
|
Interest expense |
|
|
— |
|
|
|
(146 |
) |
|
|
(19 |
) |
|
|
(940 |
) |
Other income (expense), net |
|
|
354 |
|
|
|
971 |
|
|
|
(168 |
) |
|
|
803 |
|
Income before income taxes |
|
|
36,601 |
|
|
|
61,119 |
|
|
|
185,936 |
|
|
|
226,087 |
|
Provision for income taxes |
|
|
12,234 |
|
|
|
15,739 |
|
|
|
42,483 |
|
|
|
45,511 |
|
Net income |
|
$ |
24,367 |
|
|
$ |
45,380 |
|
|
$ |
143,453 |
|
|
$ |
180,576 |
|
Earnings per share, basic |
|
$ |
0.42 |
|
|
$ |
0.79 |
|
|
$ |
2.49 |
|
|
$ |
3.14 |
|
Earnings per share, diluted |
|
$ |
0.42 |
|
|
$ |
0.78 |
|
|
$ |
2.46 |
|
|
$ |
3.09 |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Basic |
|
|
57,653 |
|
|
|
57,659 |
|
|
|
57,620 |
|
|
|
57,561 |
|
Diluted |
|
|
58,214 |
|
|
|
58,378 |
|
|
|
58,285 |
|
|
|
58,395 |
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Consolidated Statements of Cash Flows |
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(in thousands) |
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(unaudited) |
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Year Ended |
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2020 |
|
|
2019 |
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Cash flows from operating activities |
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|
|
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|
|
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Net income |
|
$ |
143,453 |
|
|
$ |
180,576 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
53,373 |
|
|
|
42,211 |
|
Accretion of discount on available-for-sale securities |
|
|
(1,563 |
) |
|
|
(940 |
) |
Amortization of debt issuance costs |
|
|
36 |
|
|
|
35 |
|
Stock-based compensation expense |
|
|
90,108 |
|
|
|
47,268 |
|
Cash paid for derivative settlement |
|
|
(613 |
) |
|
|
(81 |
) |
(Gain)/loss on derivative |
|
|
1,993 |
|
|
|
1,456 |
|
Deferred income taxes, net |
|
|
21,381 |
|
|
|
21,011 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
168 |
|
|
|
(5,884 |
) |
Prepaid expenses |
|
|
(4,293 |
) |
|
|
(5,903 |
) |
Inventory |
|
|
(41 |
) |
|
|
(403 |
) |
Other assets |
|
|
(1,720 |
) |
|
|
(3,555 |
) |
Deferred contract costs |
|
|
(89,776 |
) |
|
|
(76,204 |
) |
Accounts payable |
|
|
1,529 |
|
|
|
(221 |
) |
Income taxes, net |
|
|
(6,427 |
) |
|
|
(58 |
) |
Accrued commissions and bonuses |
|
|
1,360 |
|
|
|
1,672 |
|
Accrued payroll and vacation |
|
|
9,659 |
|
|
|
4,129 |
|
Deferred revenue |
|
|
10,582 |
|
|
|
11,593 |
|
Accrued expenses and other current liabilities |
|
|
(2,002 |
) |
|
|
7,561 |
|
Net cash provided by operating activities |
|
|
227,207 |
|
|
|
224,263 |
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
Purchase of short-term investments from funds held for clients |
|
|
(332,756 |
) |
|
|
(195,811 |
) |
Proceeds from maturities of short-term investments from funds held for clients |
|
|
308,981 |
|
|
|
69,200 |
|
Purchases of property and equipment |
|
|
(94,102 |
) |
|
|
(92,934 |
) |
Net cash used in investing activities |
|
|
(117,877 |
) |
|
|
(219,545 |
) |
Cash flows from financing activities |
|
|
|
|
|
|
|
|
Repurchases of common stock |
|
|
(52,040 |
) |
|
|
— |
|
Withholding taxes paid related to net share settlements |
|
|
(62,811 |
) |
|
|
(42,528 |
) |
Payments on long-term debt |
|
|
(1,775 |
) |
|
|
(1,775 |
) |
Net change in client funds obligation |
|
|
(49,283 |
) |
|
|
694,991 |
|
Payment of debt issuance costs |
|
|
— |
|
|
|
(16 |
) |
Net cash provided by (used in) financing activities |
|
|
(165,909 |
) |
|
|
650,672 |
|
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents |
|
|
(56,579 |
) |
|
|
655,390 |
|
Cash, cash equivalents, restricted cash and restricted cash equivalents |
|
|
|
|
|
|
|
|
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period |
|
|
1,641,854 |
|
|
|
986,464 |
|
Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period |
|
$ |
1,585,275 |
|
|
$ |
1,641,854 |
|
|
|
Year Ended |
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|
|
2020 |
|
|
2019 |
|
||
Reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
151,710 |
|
|
$ |
133,667 |
|
Restricted cash included in funds held for clients |
|
|
1,433,565 |
|
|
|
1,508,187 |
|
Total cash, cash equivalents, restricted cash and restricted cash equivalents, end of period |
|
$ |
1,585,275 |
|
|
$ |
1,641,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosures of cash flow information: |
|
|
|
|
|
|
|
|
Cash paid for interest, net of amounts capitalized |
|
$ |
— |
|
|
$ |
891 |
|
Cash paid for income taxes |
|
$ |
27,530 |
|
|
$ |
24,566 |
|
Non-cash investing and financing activities: |
|
|
|
|
|
|
|
|
Purchases of property and equipment, accrued but not paid |
|
$ |
837 |
|
|
$ |
7,451 |
|
Stock-based compensation for capitalized software |
|
$ |
6,655 |
|
|
$ |
4,757 |
|
Right of use assets obtained in exchange for operating lease liabilities |
|
$ |
9,693 |
|
|
$ |
14,000 |
|
|
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Unaudited Reconciliations of GAAP to Non-GAAP Financial Measures |
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(in thousands, except per share amounts) |
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|
|
Three Months Ended
|
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|
Year Ended
|
|
||||||||||
|
|
2020 |
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|
2019 |
|
|
2020 |
|
|
2019 |
|
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Net income to adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
24,367 |
|
|
$ |
45,380 |
|
|
$ |
143,453 |
|
|
$ |
180,576 |
|
Interest expense |
|
|
— |
|
|
|
146 |
|
|
|
19 |
|
|
|
940 |
|
Provision for income taxes |
|
|
12,234 |
|
|
|
15,739 |
|
|
|
42,483 |
|
|
|
45,511 |
|
Depreciation and amortization |
|
|
14,299 |
|
|
|
11,567 |
|
|
|
53,373 |
|
|
|
42,211 |
|
EBITDA |
|
|
50,900 |
|
|
|
72,832 |
|
|
|
239,328 |
|
|
|
269,238 |
|
Non-cash stock-based compensation expense |
|
|
33,577 |
|
|
|
6,146 |
|
|
|
90,108 |
|
|
|
47,268 |
|
Change in fair value of interest rate swap |
|
|
(238 |
) |
|
|
(388 |
) |
|
|
1,380 |
|
|
|
1,375 |
|
Adjusted EBITDA |
|
$ |
84,239 |
|
|
$ |
78,590 |
|
|
$ |
330,816 |
|
|
$ |
317,881 |
|
Net income margin |
|
|
11.0 |
% |
|
|
23.5 |
% |
|
|
17.0 |
% |
|
|
24.5 |
% |
Adjusted EBITDA margin |
|
|
38.1 |
% |
|
|
40.6 |
% |
|
|
39.3 |
% |
|
|
43.1 |
% |
|
|
Three Months Ended
|
|
|
Year Ended
|
|
||||||||||
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
Net income to non-GAAP net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
24,367 |
|
|
$ |
45,380 |
|
|
$ |
143,453 |
|
|
$ |
180,576 |
|
Non-cash stock-based compensation expense |
|
|
33,577 |
|
|
|
6,146 |
|
|
|
90,108 |
|
|
|
47,268 |
|
Change in fair value of interest rate swap |
|
|
(238 |
) |
|
|
(388 |
) |
|
|
1,380 |
|
|
|
1,375 |
|
Income tax effect on non-GAAP adjustments |
|
|
(8,613 |
) |
|
|
(673 |
) |
|
|
(31,415 |
) |
|
|
(24,647 |
) |
Non-GAAP net income |
|
$ |
49,093 |
|
|
$ |
50,465 |
|
|
$ |
203,526 |
|
|
$ |
204,572 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
57,653 |
|
|
|
57,659 |
|
|
|
57,620 |
|
|
|
57,561 |
|
Diluted |
|
|
58,214 |
|
|
|
58,378 |
|
|
|
58,285 |
|
|
|
58,395 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share, basic |
|
$ |
0.42 |
|
|
$ |
0.79 |
|
|
$ |
2.49 |
|
|
$ |
3.14 |
|
Earnings per share, diluted |
|
$ |
0.42 |
|
|
$ |
0.78 |
|
|
$ |
2.46 |
|
|
$ |
3.09 |
|
Non-GAAP net income per share, basic |
|
$ |
0.85 |
|
|
$ |
0.88 |
|
|
$ |
3.53 |
|
|
$ |
3.55 |
|
Non-GAAP net income per share, diluted |
|
$ |
0.84 |
|
|
$ |
0.86 |
|
|
$ |
3.49 |
|
|
$ |
3.50 |
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
||||||||||
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
Earnings per share to non-GAAP net income per share, basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share, basic |
|
$ |
0.42 |
|
|
$ |
0.79 |
|
|
$ |
2.49 |
|
|
$ |
3.14 |
|
Non-cash stock-based compensation expense |
|
|
0.58 |
|
|
|
0.11 |
|
|
|
1.56 |
|
|
|
0.82 |
|
Change in fair value of interest rate swap |
|
|
— |
|
|
|
(0.01 |
) |
|
|
0.02 |
|
|
|
0.02 |
|
Income tax effect on non-GAAP adjustments |
|
|
(0.15 |
) |
|
|
(0.01 |
) |
|
|
(0.54 |
) |
|
|
(0.43 |
) |
Non-GAAP net income per share, basic |
|
$ |
0.85 |
|
|
$ |
0.88 |
|
|
$ |
3.53 |
|
|
$ |
3.55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
||||||||||
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
Earnings per share to non-GAAP net income per share, diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share, diluted |
|
$ |
0.42 |
|
|
$ |
0.78 |
|
|
$ |
2.46 |
|
|
$ |
3.09 |
|
Non-cash stock-based compensation expense |
|
|
0.58 |
|
|
|
0.11 |
|
|
|
1.55 |
|
|
|
0.81 |
|
Change in fair value of interest rate swap |
|
|
— |
|
|
|
(0.01 |
) |
|
|
0.02 |
|
|
|
0.02 |
|
Income tax effect on non-GAAP adjustments |
|
|
(0.16 |
) |
|
|
(0.02 |
) |
|
|
(0.54 |
) |
|
|
(0.42 |
) |
Non-GAAP net income per share, diluted |
|
$ |
0.84 |
|
|
$ |
0.86 |
|
|
$ |
3.49 |
|
|
$ |
3.50 |
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
||||||||||
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
Adjusted gross profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
$ |
220,947 |
|
|
$ |
193,409 |
|
|
$ |
841,434 |
|
|
$ |
737,671 |
|
Less: Total cost of revenues |
|
|
(33,030 |
) |
|
|
(28,798 |
) |
|
|
(123,546 |
) |
|
|
(109,747 |
) |
Total gross profit |
|
|
187,917 |
|
|
|
164,611 |
|
|
|
717,888 |
|
|
|
627,924 |
|
Plus: Non-cash stock-based compensation expense |
|
|
1,027 |
|
|
|
421 |
|
|
|
5,185 |
|
|
|
4,376 |
|
Total adjusted gross profit |
|
$ |
188,944 |
|
|
$ |
165,032 |
|
|
$ |
723,073 |
|
|
$ |
632,300 |
|
Gross margin |
|
|
85.1 |
% |
|
|
85.1 |
% |
|
|
85.3 |
% |
|
|
85.1 |
% |
Adjusted gross margin |
|
|
85.5 |
% |
|
|
85.3 |
% |
|
|
85.9 |
% |
|
|
85.7 |
% |
|
|
Three Months Ended
|
|
|
Year Ended
|
|
||||||||||
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
Adjusted sales and marketing expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing expenses |
|
$ |
62,488 |
|
|
$ |
51,006 |
|
|
$ |
235,716 |
|
|
$ |
179,286 |
|
Less: Non-cash stock-based compensation expense |
|
|
(3,581 |
) |
|
|
(2,502 |
) |
|
|
(14,376 |
) |
|
|
(7,955 |
) |
Adjusted sales and marketing expenses |
|
$ |
58,907 |
|
|
$ |
48,504 |
|
|
$ |
221,340 |
|
|
$ |
171,331 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
$ |
220,947 |
|
|
$ |
193,409 |
|
|
$ |
841,434 |
|
|
$ |
737,671 |
|
Sales and marketing expenses as a % of revenues |
|
|
28.3 |
% |
|
|
26.4 |
% |
|
|
28.0 |
% |
|
|
24.3 |
% |
Adjusted sales and marketing expenses as a % of revenues |
|
|
26.7 |
% |
|
|
25.1 |
% |
|
|
26.3 |
% |
|
|
23.2 |
% |
|
|
Three Months Ended
|
|
|
Year Ended
|
|
||||||||||
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
Adjusted total administrative expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total administrative expenses |
|
$ |
151,670 |
|
|
$ |
104,317 |
|
|
$ |
531,765 |
|
|
$ |
401,700 |
|
Less: Non-cash stock-based compensation expense |
|
|
(32,550 |
) |
|
|
(5,725 |
) |
|
|
(84,923 |
) |
|
|
(42,892 |
) |
Adjusted total administrative expenses |
|
$ |
119,120 |
|
|
$ |
98,592 |
|
|
$ |
446,842 |
|
|
$ |
358,808 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
$ |
220,947 |
|
|
$ |
193,409 |
|
|
$ |
841,434 |
|
|
$ |
737,671 |
|
Total administrative expenses as a % of revenues |
|
|
68.6 |
% |
|
|
53.9 |
% |
|
|
63.2 |
% |
|
|
54.5 |
% |
Adjusted total administrative expenses as a % of revenues |
|
|
53.9 |
% |
|
|
51.0 |
% |
|
|
53.1 |
% |
|
|
48.6 |
% |
|
|
Three Months Ended
|
|
|
Year Ended
|
|
||||||||||
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
Adjusted research and development expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development expenses |
|
$ |
25,073 |
|
|
$ |
18,211 |
|
|
$ |
90,244 |
|
|
$ |
73,080 |
|
Less: Non-cash stock-based compensation expense |
|
|
(1,837 |
) |
|
|
(291 |
) |
|
|
(9,107 |
) |
|
|
(5,428 |
) |
Adjusted research and development expenses |
|
$ |
23,236 |
|
|
$ |
17,920 |
|
|
$ |
81,137 |
|
|
$ |
67,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
$ |
220,947 |
|
|
$ |
193,409 |
|
|
$ |
841,434 |
|
|
$ |
737,671 |
|
Research and development expenses as a % of revenues |
|
|
11.3 |
% |
|
|
9.4 |
% |
|
|
10.7 |
% |
|
|
9.9 |
% |
Adjusted research and development expenses as a % of revenues |
|
|
10.5 |
% |
|
|
9.3 |
% |
|
|
9.6 |
% |
|
|
9.2 |
% |
|
|
Three Months Ended
|
|
|
Year Ended
|
|
||||||||||
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
Total research and development costs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized research and development costs |
|
$ |
11,341 |
|
|
$ |
7,686 |
|
|
$ |
43,789 |
|
|
$ |
30,412 |
|
Research and development expenses |
|
|
25,073 |
|
|
|
18,211 |
|
|
|
90,244 |
|
|
|
73,080 |
|
Total research and development costs |
|
$ |
36,414 |
|
|
$ |
25,897 |
|
|
$ |
134,033 |
|
|
$ |
103,492 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
$ |
220,947 |
|
|
$ |
193,409 |
|
|
$ |
841,434 |
|
|
$ |
737,671 |
|
Total research and development costs as a % of revenues |
|
|
16.5 |
% |
|
|
13.4 |
% |
|
|
15.9 |
% |
|
|
14.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted total research and development costs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total research and development costs |
|
$ |
36,414 |
|
|
$ |
25,897 |
|
|
$ |
134,033 |
|
|
$ |
103,492 |
|
Less: Capitalized non-cash stock-based compensation |
|
|
(1,371 |
) |
|
|
(470 |
) |
|
|
(6,655 |
) |
|
|
(4,757 |
) |
Less: Non-cash stock-based compensation expense |
|
|
(1,837 |
) |
|
|
(291 |
) |
|
|
(9,107 |
) |
|
|
(5,428 |
) |
Adjusted total research and development costs |
|
$ |
33,206 |
|
|
$ |
25,136 |
|
|
$ |
118,271 |
|
|
$ |
93,307 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
$ |
220,947 |
|
|
$ |
193,409 |
|
|
$ |
841,434 |
|
|
$ |
737,671 |
|
Adjusted total research and development costs as a % of revenues |
|
|
15.0 |
% |
|
|
13.0 |
% |
|
|
14.1 |
% |
|
|
12.6 |
% |
|
||||||||||||||||
Unaudited Components of Non-Cash Stock-Based Compensation Expense |
||||||||||||||||
(in thousands) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2020 |
|
||||
Non-cash stock-based compensation expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
$ |
1,027 |
|
|
$ |
421 |
|
|
$ |
5,185 |
|
|
$ |
4,376 |
|
Sales and marketing |
|
|
3,581 |
|
|
|
2,502 |
|
|
|
14,376 |
|
|
|
7,955 |
|
Research and development |
|
|
1,837 |
|
|
|
291 |
|
|
|
9,107 |
|
|
|
5,428 |
|
General and administrative |
|
|
27,132 |
|
|
|
2,932 |
|
|
|
61,440 |
|
|
|
29,509 |
|
Total non-cash stock-based compensation expense |
|
$ |
33,577 |
|
|
$ |
6,146 |
|
|
$ |
90,108 |
|
|
$ |
47,268 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210210005787/en/
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