Workiva Inc. Announces Fourth Quarter and Full Year 2023 Financial Results
-
Subscription revenues of
$149 million in Q4 2023, representing 18% year-over-year growth -
Total revenues of
$167 million in Q4 2023, representing 16% year-over-year growth -
Subscription revenues of
$559 million for full year 2023, representing 20% year-over-year growth -
Achieved 32% YOY Growth of Customers with Annual Contract Value Over
$300K
"
"For Q4, we exceeded our revenue guidance by
Fourth Quarter 2023 Financial Results
-
Revenue: Total revenue for the fourth quarter of 2023 reached
$167 million , an increase of 16% from$144 million in the fourth quarter of 2022. Subscription and support revenue contributed$149 million , up 18% versus the fourth quarter of 2022. Professional services revenue was$18 million , relatively flat compared to the same quarter in the prior year. -
Gross Profit: GAAP gross profit for the fourth quarter of 2023 was
$129 million compared with$109 million in the same quarter of 2022. GAAP gross margin was 77.3% versus 76.1% in the fourth quarter of 2022. Non-GAAP gross profit for the fourth quarter of 2023 was$131 million , an increase of 18% compared with the prior year's fourth quarter, and non-GAAP gross margin was 78.4% compared to 77.1% in the fourth quarter of 2022. -
Results from Operations: GAAP loss from operations for the fourth quarter of 2023 was
$9 million compared with a loss of$13 million in the prior year's fourth quarter. Non-GAAP income from operations was$13 million compared with non-GAAP income from operations of$5 million in the fourth quarter of 2022. -
GAAP Net Loss: GAAP net loss for the fourth quarter of 2023 was
$4 million compared with a net loss of$14 million for the prior year's fourth quarter. GAAP net loss per basic and diluted share was$0.08 compared with a net loss per basic and diluted share of$0.26 in the fourth quarter of 2022. -
Non-GAAP Net Income: Non-GAAP net income for the fourth quarter of 2023 was
$18 million compared with net income of$4 million in the prior year's fourth quarter. Non-GAAP net income per basic share was$0.33 and net income per diluted share was$0.30 compared with net income per basic share and diluted share of$0.08 in the fourth quarter of 2022. -
Liquidity: As of
December 31, 2023 ,Workiva had cash, cash equivalents, and marketable securities totaling$814 million , compared with$431 million as ofDecember 31, 2022 . InAugust 2023 , we issued$702.0 million aggregate principal amount of 1.250% convertible senior notes due in 2028. We used$396.9 million of the net proceeds from the 2028 Notes offering to repurchase$273.8 million principal amount, together with accrued and unpaid interest thereon, of our 2026 Notes.Workiva had$71 million aggregate principal amount of 1.125% convertible senior notes due in 2026,$702 million aggregate principal amount of 1.250% convertible senior notes due in 2028 and$15 million of finance lease obligations outstanding as ofDecember 31, 2023 .
Key Metrics and Recent Business Highlights
-
Customers:
Workiva had 6,034 customers as ofDecember 31, 2023 , a net increase of 370 customers fromDecember 31, 2022 . -
Revenue Retention Rate: As of
December 31, 2023 ,Workiva's revenue retention rate (excluding add-on revenue) was 98%, and the revenue retention rate including add-on revenue was 110%. Add-on revenue includes changes in both solutions and pricing for existing customers. -
Large Contracts: As of
December 31, 2023 ,Workiva had 1,631 customers with an annual contract value (“ACV”) of more than$100,000 , up 21% from 1,345 customers atDecember 31, 2022 .Workiva had 915 customers with an ACV of more than$150,000 , up 27% from 718 customers in the fourth quarter of 2022.Workiva had 311 customers with an ACV of more than$300,000 , up 32% from 236 customers in the fourth quarter of 2022.
Full Year 2023 Financial Results
-
Revenue: Total revenue for the full year 2023 reached
$630 million , an increase of 17% from$538 million in 2022. Subscription and support revenue contributed$559 million , up 20% compared to 2022. Professional services revenue was$71 million , a decrease of 2% compared to the prior year. -
Gross Profit: GAAP gross profit for 2023 was
$476 million compared with$408 million in 2022. GAAP gross margin was 75.6% versus 75.9% in the prior year. Non-GAAP gross profit for 2023 was$483 million , an increase of 17% compared to 2022, and non-GAAP gross margin was 76.7% compared to 76.9%. -
Results from Operations: GAAP loss from operations for 2023 was
$95 million compared with a loss of$89 million in the prior year. Non-GAAP income from operations was$10 million , compared with a non-GAAP loss from operations of$13 million in 2022. -
GAAP Net Loss: GAAP net loss for 2023 was
$128 million compared with a net loss of$91 million in the prior year. GAAP net loss per basic and diluted share was$2.36 compared with a net loss per basic and diluted share of$1.72 in 2022. -
Non-GAAP Net Loss: Non-GAAP net loss for 2023 was
$23 million compared with a net loss of$15 million in the prior year. Non-GAAP net loss per basic and diluted share was$0.42 , compared with a net loss per basic and diluted share of$0.29 in 2022. In connection with the partial repurchase of our convertible notes due in 2026 described above, we recorded a loss on induced conversion of$45.1 million which was recorded as interest expense. -
Cash Flow: Net cash provided by operating activities was
$71 million in 2023, compared to cash provided by operating activities of$11 million in 2022.
Financial Outlook
As of
First Quarter 2024 Guidance:
-
Total revenue is expected to be in the range of
$173 million to$175 million . -
GAAP loss from operations is expected to be in the range of
$20.5 million to$18.5 million . -
Non-GAAP income from operations is expected to be in the range of
$4 million to$6 million . -
GAAP net loss per basic share is expected to be in the range of
$0.29 to$0.25 . -
Non-GAAP net income per basic share is expected to be in the range of
$0.15 to$0.19 . - Net income (loss) per basic share is based on 55.0 million weighted-average shares outstanding.
Full Year 2024 Guidance:
-
Total revenue is expected to be in the range of
$718 million to$722 million . -
GAAP loss from operations is expected to be in the range of
$85 million to$81 million . -
Non-GAAP income from operations is expected to be in the range of
$17 million to$21 million . -
GAAP net loss per basic share is expected to be in the range of
$1.28 to$1.21 . -
Non-GAAP net income per basic share is expected to be in the range of
$0.56 to$0.63 . - Net income (loss) per basic share is based on 55.3 million weighted-average shares outstanding.
Quarterly Conference Call
About
Non-GAAP Financial Measures
The non-GAAP adjustments referenced herein relate to the exclusion of stock-based compensation and amortization of acquisition-related intangible assets. A reconciliation of GAAP to non-GAAP historical financial measures has been provided in Table I at the end of this press release. A reconciliation of GAAP to non-GAAP guidance has been provided in Table II at the end of this press release.
Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in Workiva’s industry, as other companies in the industry may calculate non-GAAP financial results differently. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on Workiva’s reported financial results. Further, stock-based compensation expense has been and will continue to be for the foreseeable future a significant recurring expense in Workiva’s business and an important part of the compensation provided to its employees. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Investors should review the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures included below, and not rely on any single financial measure to evaluate Workiva’s business.
Safe Harbor Statement
Certain statements in this press release are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. These statements relate to future events or the Company’s future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Company or its industry to be materially different from those expressed or implied by any forward-looking statements. In particular, statements about the Company’s expectations, beliefs, plans, objectives, assumptions, future events or future performance contained in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "potential," "outlook," "guidance" or the negative of those terms or other comparable terminology.
Please see the Company’s documents filed or to be filed with the
|
||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(in thousands, except share and per share amounts) |
||||||||||||||||
|
Three months ended
|
Year ended |
||||||||||||||
|
2023 |
2022 |
2023 |
2022 |
||||||||||||
|
(unaudited) |
|
|
|||||||||||||
Revenue |
|
|
|
|
||||||||||||
Subscription and support |
$ |
148,788 |
|
$ |
125,871 |
|
$ |
558,645 |
|
$ |
464,935 |
|
||||
Professional services |
|
17,865 |
|
|
17,932 |
|
|
71,394 |
|
|
72,940 |
|
||||
Total revenue |
|
166,653 |
|
|
143,803 |
|
|
630,039 |
|
|
537,875 |
|
||||
Cost of revenue |
|
|
|
|
||||||||||||
Subscription and support (1) |
|
25,113 |
|
|
21,028 |
|
|
99,193 |
|
|
77,711 |
|
||||
Professional services (1) |
|
12,732 |
|
|
13,328 |
|
|
55,029 |
|
|
52,174 |
|
||||
Total cost of revenue |
|
37,845 |
|
|
34,356 |
|
|
154,222 |
|
|
129,885 |
|
||||
Gross profit |
|
128,808 |
|
|
109,447 |
|
|
475,817 |
|
|
407,990 |
|
||||
Operating expenses |
|
|
|
|
||||||||||||
Research and development (1) |
|
42,555 |
|
|
38,072 |
|
|
172,790 |
|
|
151,716 |
|
||||
Sales and marketing (1) |
|
71,867 |
|
|
60,381 |
|
|
287,035 |
|
|
245,260 |
|
||||
General and administrative (1) |
|
23,859 |
|
|
24,271 |
|
|
110,519 |
|
|
99,778 |
|
||||
Total operating expenses |
|
138,281 |
|
|
122,724 |
|
|
570,344 |
|
|
496,754 |
|
||||
Loss from operations |
|
(9,473 |
) |
|
(13,277 |
) |
|
(94,527 |
) |
|
(88,764 |
) |
||||
Interest income |
|
10,336 |
|
|
2,555 |
|
|
25,882 |
|
|
4,880 |
|
||||
Interest expense |
|
(3,202 |
) |
|
(1,502 |
) |
|
(53,639 |
) |
|
(6,042 |
) |
||||
Other (expense) and income, net |
|
(364 |
) |
|
(541 |
) |
|
(1,814 |
) |
|
926 |
|
||||
Loss before provision for income taxes |
|
(2,703 |
) |
|
(12,765 |
) |
|
(124,098 |
) |
|
(89,000 |
) |
||||
Provision for income taxes |
|
1,493 |
|
|
1,137 |
|
|
3,427 |
|
|
1,947 |
|
||||
Net loss |
$ |
(4,196 |
) |
$ |
(13,902 |
) |
$ |
(127,525 |
) |
$ |
(90,947 |
) |
||||
Net loss per common share: |
|
|
|
|
||||||||||||
Basic and diluted |
$ |
(0.08 |
) |
$ |
(0.26 |
) |
$ |
(2.36 |
) |
$ |
(1.72 |
) |
||||
Weighted-average common shares outstanding - basic and diluted |
|
54,432,003 |
|
|
53,279,147 |
|
|
54,099,757 |
|
|
52,954,079 |
|
||||
(1) Includes stock-based compensation expense as follows: |
||||||||||||||||
|
Three months ended
|
Year ended |
||||||||||||||
|
2023 |
2022 |
2023 |
2022 |
||||||||||||
|
(unaudited) |
|||||||||||||||
Cost of revenue |
||||||||||||||||
Subscription and support |
$ |
1,298 |
|
$ |
880 |
|
$ |
5,030 |
|
$ |
3,437 |
|
||||
Professional services |
|
617 |
|
|
550 |
|
|
2,540 |
|
|
2,128 |
|
||||
Operating expenses |
|
|
|
|
||||||||||||
Research and development |
|
4,764 |
|
|
3,282 |
|
|
18,441 |
|
|
12,554 |
|
||||
Sales and marketing |
|
7,005 |
|
|
4,935 |
|
|
27,774 |
|
|
19,323 |
|
||||
General and administrative |
|
7,052 |
|
|
6,960 |
|
|
44,980 |
|
|
33,218 |
|
||||
|
||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||
(in thousands) |
||||||||
|
As of |
|||||||
|
2023 |
|
2022 |
|||||
Assets |
|
|
|
|||||
Current assets |
|
|
|
|||||
Cash and cash equivalents |
$ |
256,100 |
|
|
$ |
240,197 |
|
|
Marketable securities |
|
557,622 |
|
|
|
190,595 |
|
|
Accounts receivable, net |
|
125,193 |
|
|
|
106,316 |
|
|
Deferred costs |
|
39,023 |
|
|
|
38,350 |
|
|
Other receivables |
|
7,367 |
|
|
|
6,674 |
|
|
Prepaid expenses and other |
|
23,631 |
|
|
|
17,957 |
|
|
Total current assets |
|
1,008,936 |
|
|
|
600,089 |
|
|
Property and equipment, net |
|
24,282 |
|
|
|
27,096 |
|
|
Operating lease right-of-use assets |
|
12,642 |
|
|
|
13,932 |
|
|
Deferred costs, non-current |
|
33,346 |
|
|
|
33,682 |
|
|
|
|
112,097 |
|
|
|
109,740 |
|
|
Intangible assets, net |
|
22,892 |
|
|
|
28,234 |
|
|
Other assets |
|
4,665 |
|
|
|
6,847 |
|
|
Total assets |
$ |
1,218,860 |
|
|
$ |
819,620 |
|
|
Liabilities and Stockholders’ (Deficit) Equity |
|
|
|
|||||
Current liabilities |
|
|
|
|||||
Accounts payable |
$ |
5,204 |
|
|
$ |
6,174 |
|
|
Accrued expenses and other current liabilities |
|
97,921 |
|
|
|
83,999 |
|
|
Deferred revenue |
|
380,843 |
|
|
|
316,263 |
|
|
Finance lease obligations |
|
532 |
|
|
|
504 |
|
|
Total current liabilities |
|
484,500 |
|
|
|
406,940 |
|
|
Convertible senior notes, non-current |
|
762,455 |
|
|
|
340,257 |
|
|
Deferred revenue, non-current |
|
36,177 |
|
|
|
38,237 |
|
|
Other long-term liabilities |
|
178 |
|
|
|
1,518 |
|
|
Operating lease liabilities, non-current |
|
10,890 |
|
|
|
12,102 |
|
|
Finance lease obligations, non-current |
|
14,050 |
|
|
|
14,583 |
|
|
Total liabilities |
|
1,308,250 |
|
|
|
813,637 |
|
|
Stockholders’ (deficit) equity |
|
|
|
|||||
Common stock |
|
54 |
|
|
|
53 |
|
|
Additional paid-in-capital |
|
562,942 |
|
|
|
537,732 |
|
|
Accumulated deficit |
|
(652,641 |
) |
|
|
(525,116 |
) |
|
Accumulated other comprehensive loss |
|
255 |
|
|
|
(6,686 |
) |
|
Total stockholders’ (deficit) equity |
|
(89,390 |
) |
|
|
5,983 |
|
|
Total liabilities and stockholders’ (deficit) equity |
$ |
1,218,860 |
|
|
$ |
819,620 |
|
|
|
||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||||||||
(in thousands) |
||||||||||||||||
|
Three months ended
|
|
Year ended |
|||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||||
|
(unaudited) |
|
|
|
|
|||||||||||
Cash flows from operating activities |
|
|
|
|
|
|
|
|||||||||
Net loss |
$ |
(4,196 |
) |
|
$ |
(13,902 |
) |
|
$ |
(127,525 |
) |
|
$ |
(90,947 |
) |
|
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|||||||||
Depreciation and amortization |
|
2,787 |
|
|
|
2,847 |
|
|
|
11,140 |
|
|
|
10,212 |
|
|
Stock-based compensation expense |
|
20,736 |
|
|
|
16,607 |
|
|
|
98,765 |
|
|
|
70,660 |
|
|
Provision for doubtful accounts |
|
353 |
|
|
|
74 |
|
|
|
410 |
|
|
|
156 |
|
|
Realized loss on sale of available-for-sale securities, net |
|
— |
|
|
|
— |
|
|
|
708 |
|
|
|
— |
|
|
(Accretion) amortization of premiums and discounts on marketable securities, net |
|
(3,186 |
) |
|
|
(163 |
) |
|
|
(7,716 |
) |
|
|
1,079 |
|
|
Amortization of issuance costs and debt discount |
|
608 |
|
|
|
325 |
|
|
|
1,730 |
|
|
|
1,298 |
|
|
Induced conversion expense |
|
— |
|
|
|
— |
|
|
|
45,144 |
|
|
|
— |
|
|
Deferred income tax |
|
3 |
|
|
|
629 |
|
|
|
(14 |
) |
|
|
538 |
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|||||||||
Accounts receivable |
|
(25,561 |
) |
|
|
(22,703 |
) |
|
|
(18,318 |
) |
|
|
(28,893 |
) |
|
Deferred costs |
|
(5,971 |
) |
|
|
(5,834 |
) |
|
|
277 |
|
|
|
(8,496 |
) |
|
Operating lease right-of-use asset |
|
1,177 |
|
|
|
1,276 |
|
|
|
4,984 |
|
|
|
5,153 |
|
|
Other receivables |
|
(334 |
) |
|
|
(1,693 |
) |
|
|
(2,176 |
) |
|
|
(1,655 |
) |
|
Prepaid expenses |
|
(1,038 |
) |
|
|
(3,783 |
) |
|
|
(5,023 |
) |
|
|
(2,913 |
) |
|
Other assets |
|
751 |
|
|
|
(1,336 |
) |
|
|
2,230 |
|
|
|
(2,441 |
) |
|
Accounts payable |
|
265 |
|
|
|
(3,557 |
) |
|
|
(1,002 |
) |
|
|
2,438 |
|
|
Deferred revenue |
|
37,887 |
|
|
|
33,084 |
|
|
|
60,112 |
|
|
|
61,657 |
|
|
Operating lease liability |
|
(1,004 |
) |
|
|
(1,298 |
) |
|
|
(4,133 |
) |
|
|
(5,055 |
) |
|
Accrued expenses and other liabilities |
|
1,065 |
|
|
|
(1,841 |
) |
|
|
11,282 |
|
|
|
(1,457 |
) |
|
Net cash provided by (used in) operating activities |
|
24,342 |
|
|
|
(1,268 |
) |
|
|
70,875 |
|
|
|
11,334 |
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|||||||||
Purchase of property and equipment |
|
(392 |
) |
|
|
(1,232 |
) |
|
|
(2,124 |
) |
|
|
(3,458 |
) |
|
Purchase of marketable securities |
|
(251,296 |
) |
|
|
(31,190 |
) |
|
|
(573,304 |
) |
|
|
(130,754 |
) |
|
Sale of marketable securities |
|
— |
|
|
|
— |
|
|
|
65,052 |
|
|
|
14,981 |
|
|
Maturities of marketable securities |
|
76,547 |
|
|
|
43,708 |
|
|
|
153,358 |
|
|
|
150,565 |
|
|
Acquisitions, net of cash acquired |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(99,186 |
) |
|
Purchase of intangible assets |
|
(68 |
) |
|
|
(52 |
) |
|
|
(235 |
) |
|
|
(160 |
) |
|
Net cash (used in) provided by investing activities |
|
(175,209 |
) |
|
|
11,234 |
|
|
|
(357,253 |
) |
|
|
(68,012 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Cash flows from financing activities |
|
|
|
|
|
|
|
|||||||||
Proceeds from option exercises |
|
1,148 |
|
|
|
678 |
|
|
|
4,472 |
|
|
|
3,273 |
|
|
Taxes paid related to net share settlements of stock-based compensation awards |
|
(35 |
) |
|
|
(1,889 |
) |
|
|
(9,459 |
) |
|
|
(12,541 |
) |
|
Proceeds from shares issued in connection with employee stock purchase plan |
|
— |
|
|
|
— |
|
|
|
12,513 |
|
|
|
9,256 |
|
|
Proceeds from the issuance of convertible senior notes, net of issuance costs |
|
— |
|
|
|
— |
|
|
|
691,113 |
|
|
|
— |
|
|
Payments for repurchase of convertible senior notes |
|
— |
|
|
|
— |
|
|
|
(396,869 |
) |
|
|
— |
|
|
Principal payments on finance lease obligations |
|
(129 |
) |
|
|
(233 |
) |
|
|
(505 |
) |
|
|
(1,575 |
) |
|
Net cash provided by (used in) financing activities |
|
984 |
|
|
|
(1,444 |
) |
|
|
301,265 |
|
|
|
(1,587 |
) |
|
Effect of foreign exchange rates on cash |
|
1,719 |
|
|
|
2,178 |
|
|
|
1,637 |
|
|
|
(1,924 |
) |
|
Net (decrease) increase in cash and cash equivalents |
|
(148,164 |
) |
|
|
10,700 |
|
|
|
16,524 |
|
|
|
(60,189 |
) |
|
Cash and cash equivalents at beginning of period |
|
404,885 |
|
|
|
229,497 |
|
|
|
240,197 |
|
|
|
300,386 |
|
|
Cash and cash equivalents at end of period |
$ |
256,721 |
|
|
$ |
240,197 |
|
|
$ |
256,721 |
|
|
$ |
240,197 |
|
|
Three months ended
|
Year ended |
|||||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets |
||||||||||||||||
Cash and cash equivalents at end of period |
$ |
256,100 |
|
$ |
240,197 |
|
$ |
256,100 |
|
$ |
240,197 |
|
||||
Restricted cash included within prepaid expenses and other at end of period |
|
621 |
|
|
— |
|
|
621 |
|
|
— |
|
||||
Total cash, cash equivalents, and restricted cash at end of period shown in the consolidated statements of cash flows |
$ |
256,721 |
|
$ |
240,197 |
|
$ |
256,721 |
|
$ |
240,197 |
|
||||
TABLE I |
||||||||||||||||
|
||||||||||||||||
RECONCILIATION OF NON-GAAP INFORMATION |
||||||||||||||||
(in thousands, except share and per share) |
||||||||||||||||
|
Three months ended
|
|
Year ended |
|||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||||
Gross profit, subscription and support |
$ |
123,675 |
|
|
$ |
104,843 |
|
|
$ |
459,452 |
|
|
$ |
387,224 |
|
|
Add back: Stock-based compensation |
|
1,298 |
|
|
|
880 |
|
|
|
5,030 |
|
|
|
3,437 |
|
|
Gross profit, subscription and support, non-GAAP |
$ |
124,973 |
|
|
$ |
105,723 |
|
|
$ |
464,482 |
|
|
$ |
390,661 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross profit, professional services |
$ |
5,133 |
|
|
$ |
4,604 |
|
|
$ |
16,365 |
|
|
$ |
20,766 |
|
|
Add back: Stock-based compensation |
|
617 |
|
|
|
550 |
|
|
|
2,540 |
|
|
|
2,128 |
|
|
Gross profit, professional services, non-GAAP |
$ |
5,750 |
|
|
$ |
5,154 |
|
|
$ |
18,905 |
|
|
$ |
22,894 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross profit |
$ |
128,808 |
|
|
$ |
109,447 |
|
|
$ |
475,817 |
|
|
$ |
407,990 |
|
|
Add back: Stock-based compensation |
|
1,915 |
|
|
|
1,430 |
|
|
|
7,570 |
|
|
|
5,565 |
|
|
Gross profit, non-GAAP |
$ |
130,723 |
|
|
$ |
110,877 |
|
|
$ |
483,387 |
|
|
$ |
413,555 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Cost of revenue, subscription and support |
$ |
25,113 |
|
|
$ |
21,028 |
|
|
$ |
99,193 |
|
|
$ |
77,711 |
|
|
Less: Stock-based compensation |
|
1,298 |
|
|
|
880 |
|
|
|
5,030 |
|
|
|
3,437 |
|
|
Cost of revenue, subscription and support, non-GAAP |
$ |
23,815 |
|
|
$ |
20,148 |
|
|
$ |
94,163 |
|
|
$ |
74,274 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Cost of revenue, professional services |
$ |
12,732 |
|
|
$ |
13,328 |
|
|
$ |
55,029 |
|
|
$ |
52,174 |
|
|
Less: Stock-based compensation |
|
617 |
|
|
|
550 |
|
|
|
2,540 |
|
|
|
2,128 |
|
|
Cost of revenue, professional services, non-GAAP |
$ |
12,115 |
|
|
$ |
12,778 |
|
|
$ |
52,489 |
|
|
$ |
50,046 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Research and development |
$ |
42,555 |
|
|
$ |
38,072 |
|
|
$ |
172,790 |
|
|
$ |
151,716 |
|
|
Less: Stock-based compensation |
|
4,764 |
|
|
|
3,282 |
|
|
|
18,441 |
|
|
|
12,554 |
|
|
Less: Amortization of acquisition-related intangibles |
|
886 |
|
|
|
867 |
|
|
|
3,554 |
|
|
|
3,107 |
|
|
Research and development, non-GAAP |
$ |
36,905 |
|
|
$ |
33,923 |
|
|
$ |
150,795 |
|
|
$ |
136,055 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Sales and marketing |
$ |
71,867 |
|
|
$ |
60,381 |
|
|
$ |
287,035 |
|
|
$ |
245,260 |
|
|
Less: Stock-based compensation |
|
7,005 |
|
|
|
4,935 |
|
|
|
27,774 |
|
|
|
19,323 |
|
|
Less: Amortization of acquisition-related intangibles |
|
587 |
|
|
|
581 |
|
|
|
2,392 |
|
|
|
1,954 |
|
|
Sales and marketing, non-GAAP |
$ |
64,275 |
|
|
$ |
54,865 |
|
|
$ |
256,869 |
|
|
$ |
223,983 |
|
|
|
|
|
|
|
|
|
|
|||||||||
General and administrative |
$ |
23,859 |
|
|
$ |
24,271 |
|
|
$ |
110,519 |
|
|
$ |
99,778 |
|
|
Less: Stock-based compensation |
|
7,052 |
|
|
|
6,960 |
|
|
|
44,980 |
|
|
|
33,218 |
|
|
General and administrative, non-GAAP |
$ |
16,807 |
|
|
$ |
17,311 |
|
|
$ |
65,539 |
|
|
$ |
66,560 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Loss from operations |
$ |
(9,473 |
) |
|
$ |
(13,277 |
) |
|
$ |
(94,527 |
) |
|
$ |
(88,764 |
) |
|
Add back: Stock-based compensation |
|
20,736 |
|
|
|
16,607 |
|
|
|
98,765 |
|
|
|
70,660 |
|
|
Add back: Amortization of acquisition-related intangibles |
|
1,473 |
|
|
|
1,448 |
|
|
|
5,946 |
|
|
|
5,061 |
|
|
Income (loss) from operations, non-GAAP |
$ |
12,736 |
|
|
$ |
4,778 |
|
|
$ |
10,184 |
|
|
$ |
(13,043 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Net loss |
$ |
(4,196 |
) |
|
$ |
(13,902 |
) |
|
$ |
(127,525 |
) |
|
$ |
(90,947 |
) |
|
Add back: Stock-based compensation |
|
20,736 |
|
|
|
16,607 |
|
|
|
98,765 |
|
|
|
70,660 |
|
|
Add back: Amortization of acquisition-related intangibles |
|
1,473 |
|
|
|
1,448 |
|
|
|
5,946 |
|
|
|
5,061 |
|
|
Net income (loss), non-GAAP |
$ |
18,013 |
|
|
$ |
4,153 |
|
|
$ |
(22,814 |
) |
|
$ |
(15,226 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Net loss per basic and diluted share: |
$ |
(0.08 |
) |
|
$ |
(0.26 |
) |
|
$ |
(2.36 |
) |
|
$ |
(1.72 |
) |
|
Add back: Stock-based compensation |
|
0.38 |
|
|
|
0.31 |
|
|
|
1.83 |
|
|
|
1.33 |
|
|
Add back: Amortization of acquisition-related intangibles |
|
0.03 |
|
|
|
0.03 |
|
|
|
0.11 |
|
|
|
0.10 |
|
|
Net income (loss) per basic share, non-GAAP |
$ |
0.33 |
|
|
$ |
0.08 |
|
|
$ |
(0.42 |
) |
|
$ |
(0.29 |
) |
|
Net income (loss) per diluted share, non-GAAP |
$ |
0.30 |
|
|
$ |
0.08 |
|
|
$ |
(0.42 |
) |
|
$ |
(0.29 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Weighted-average common shares outstanding - basic, non-GAAP |
|
54,432,003 |
|
|
|
53,279,147 |
|
|
|
54,099,757 |
|
|
|
52,954,079 |
|
|
Weighted-average common shares outstanding - diluted, non-GAAP |
|
60,523,201 |
|
|
|
54,938,441 |
|
|
|
54,099,757 |
|
|
|
52,954,079 |
|
|
TABLE II |
||||||||||||||||
|
||||||||||||||||
RECONCILIATION OF NON-GAAP GUIDANCE |
||||||||||||||||
(in thousands, except share and per share data) |
||||||||||||||||
|
Three months ending |
|
Year ending |
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Loss from operations, GAAP range |
$ |
(20,500 |
) |
- |
$ |
(18,500 |
) |
|
$ |
(85,000 |
) |
- |
$ |
(81,000 |
) |
|
Add back: Stock-based compensation |
|
23,200 |
|
|
|
23,200 |
|
|
|
97,000 |
|
|
|
97,000 |
|
|
Add back: Amortization of acquisition-related intangibles |
|
1,300 |
|
|
|
1,300 |
|
|
|
5,000 |
|
|
|
5,000 |
|
|
Income from operations, non-GAAP range |
$ |
4,000 |
|
- |
$ |
6,000 |
|
|
$ |
17,000 |
|
- |
$ |
21,000 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net loss per share, GAAP range |
$ |
(0.29 |
) |
- |
$ |
(0.25 |
) |
|
$ |
(1.28 |
) |
- |
$ |
(1.21 |
) |
|
Add back: Stock-based compensation |
|
0.42 |
|
|
|
0.42 |
|
|
|
1.75 |
|
|
|
1.75 |
|
|
Add back: Amortization of acquisition-related intangibles |
|
0.02 |
|
|
|
0.02 |
|
|
|
0.09 |
|
|
|
0.09 |
|
|
Net income per share, non-GAAP range |
$ |
0.15 |
|
- |
$ |
0.19 |
|
|
$ |
0.56 |
|
- |
$ |
0.63 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Weighted-average common shares outstanding - basic |
|
55,000,000 |
|
|
|
55,000,000 |
|
|
|
55,300,000 |
|
|
|
55,300,000 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240220852191/en/
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