Alarm.com Reports Fourth Quarter and Full Year 2023 Results
-- Fourth quarter SaaS and license revenue increased to
-- Fourth quarter GAAP net income attributable to common stockholders increased to
-- Full year 2023 SaaS and license revenue increased to
-- Full year 2023 GAAP net income attributable to common stockholders increased to
-- Full year 2023 non-GAAP adjusted EBITDA increased to
TYSONS, Va.--(BUSINESS WIRE)--Feb. 22, 2024--
“We are pleased to report solid results for the quarter and the year,” said
Fourth Quarter 2023 Financial Results as Compared to Fourth Quarter 2022
-
SaaS and license revenue increased 10.3% to
$148.3 million , compared to$134.6 million . -
Total revenue increased 8.7% to
$226.2 million , compared to$208.1 million . -
GAAP net income attributable to common stockholders increased to
$31.3 million , or$0.58 per diluted share, compared to$18.1 million , or$0.34 per diluted share. -
Non-GAAP adjusted EBITDA(*) increased to
$45.6 million , compared to$39.0 million . -
Non-GAAP adjusted net income attributable to common stockholders(*) increased to
$33.9 million , or$0.62 per diluted share, compared to$28.7 million , or$0.53 per diluted share.
Full Year 2023 Financial Results as Compared to Full Year 2022
-
SaaS and license revenue increased 9.4% to
$569.2 million , compared to$520.4 million . -
Total revenue increased 4.6% to
$881.7 million , compared to$842.6 million . -
GAAP net income attributable to common stockholders increased to
$81.0 million , or$1.53 per diluted share, compared to$56.3 million , or$1.07 per diluted share. -
Non-GAAP adjusted EBITDA(*)increased to
$154.0 million , compared to$146.8 million . -
Non-GAAP adjusted net incomeattributable to common stockholders(*) increased to
$113.2 million , or$2.07 per diluted share, compared to$106.9 million , or$1.95 per diluted share.
Balance Sheet and Cash Flow
-
Total cash and cash equivalents increased to
$697.0 million as ofDecember 31, 2023 , compared to$622.2 million as ofDecember 31, 2022 . During the year endedDecember 31, 2023 , we repurchased 487,918 shares ofAlarm.com common stock at an average price of$55.95 for$27.3 million . -
For the quarter ended
December 31, 2023 , cash flows from operations was$39.9 million , compared to$34.4 million for the quarter endedDecember 31, 2022 . For the quarter endedDecember 31, 2023 , non-GAAP free cash flow(*) was$37.7 million , compared to$33.9 million for the quarter endedDecember 31, 2022 . For the year endedDecember 31, 2023 , cash flows from operations was$136.0 million , compared to$56.9 million for the year endedDecember 31, 2022 . For the year endedDecember 31, 2023 , non-GAAP free cash flow(*) was$128.4 million , compared to$28.3 million for the year endedDecember 31, 2022 .
(*) Reconciliations of the non-GAAP measures are set forth at the end of this press release.
Recent Business Highlights
-
Introduced Property Actions to
Alarm Response Software : During an alarm event, Alarm.com’s monitoring station partners can now respond by unlocking doors and turning on lights at the affected property. The new controls can facilitate property access for first responders and keep property owners safer during emergencies. The new controls augment Alarm.com’s expanding range of AI-powered alarm verification capabilities, which include Enhanced Visual Verification, Person On-Site Indicator and Escalated Events. Robust privacy controls give subscribers tight control over which devices a monitoring agent can access and real-time visibility into all actions taken by the operator. - Launched New Video Analytics Rule for Privacy Control: Vacation Watch allows subscribers to schedule video monitoring start and end times providing continuous protection during extended absences. Cameras automatically disable recording based on the subscriber’s return schedule, reinforcing privacy, and preventing unwarranted monitoring escalations. Vacation Watch works with Alarm.com’s Escalated Events capability to automatically forward video-triggered events to the monitoring station for assessment and possible intervention.
-
EnergyHub Announces Record-Setting Program Launch:
Ontario Canada's Independent Electricity System Operator (IESO) partnered with EnergyHub to launch its Save on Energy Peak Perks™ demand side management program. In its first six months, the program enrolled more than 100,000 homes, creating Canada’s largest residential virtual power plant. It is also the fastest-growing program in EnergyHub’s decade-plus experience. -
Settled All Vivint Litigation and Entered into New License Agreement:
Alarm.com resolved all outstanding litigation withVivint and entered into a long-term intellectual property license agreement under whichAlarm.com will license toVivint its intellectual property portfolio.
Financial Outlook
For the first quarter of 2024:
-
SaaS and license revenue is expected to be in the range of
$148.6 million to$148.8 million .
For the full year 2024:
-
SaaS and license revenue is expected to be in the range of
$622.5 million to$623.5 million . -
Total revenue is expected to be in the range of
$912.5 million to$933.5 million , which includes anticipated hardware and other revenue in the range of$290.0 million to$310.0 million . -
Non-GAAP adjusted EBITDA is expected to be in the range of
$160.0 million to$164.0 million . -
Non-GAAP adjusted net income attributable to common stockholders is expected to be in the range of
$116.0 million to$118.1 million , based on an estimated tax rate of 21.0%. -
Based on an expected 55.2 million weighted average diluted shares outstanding, non-GAAP adjusted net income attributable to common stockholders is expected to be
$2.10 to$2.14 per diluted share.
The 2024 guidance provided above is forward-looking in nature. Actual results may differ materially. See the cautionary note regarding “Forward-Looking Statements” below. The guidance provided above is based on expectations as of the date of this press release and
Conference Call and Webcast Information
About
Non-GAAP Financial Measures
To supplement our consolidated selected financial data presented on a basis consistent with GAAP, this press release contains certain non-GAAP financial measures, including non-GAAP adjusted EBITDA, non-GAAP adjusted income before income taxes, non-GAAP adjusted net income, non-GAAP adjusted income attributable to common stockholders before income taxes, non-GAAP adjusted net income attributable to common stockholders, non-GAAP adjusted net income attributable to common stockholders per share, non-GAAP free cash flow, non-GAAP adjusted SaaS and license revenue and non-GAAP adjusted SaaS and license revenue growth rate. We have included non-GAAP measures in this press release because they are financial, operating or liquidity measures used by our management to (i) understand and evaluate our core operating performance and trends and generate future operating plans, (ii) make strategic decisions regarding the allocation of capital and investments in initiatives that are focused on cultivating new markets for our solutions and (iii) provide useful information to management about the amount of cash generated by the business after necessary capital expenditures. We also use non-GAAP adjusted EBITDA as a performance measure under our executive bonus plan. Further, we believe that these non-GAAP measures of our financial results provide useful information to investors and others in understanding and evaluating our results of operations, business trends and financial condition. While we believe the use of these non-GAAP measures provides useful information to investors and management in analyzing our financial performance, non-GAAP measures have inherent limitations in that they do not reflect all of the amounts and transactions that are included in our financial statements prepared in accordance with GAAP. Non-GAAP measures do not serve as an alternative to GAAP nor do we consider our non-GAAP measures in isolation. Accordingly, we present non-GAAP financial measures only in connection with GAAP results. We urge investors to consider non-GAAP measures only in conjunction with our GAAP financials and to review the reconciliation of our non-GAAP financial measures to the most directly comparable GAAP financial measures, which are included in this press release.
We consider non-GAAP free cash flow to be a liquidity measure, which we define as cash flows from operating activities less purchases of property and equipment.
With respect to our expectations under “Financial Outlook” above, reconciliation of non-GAAP adjusted EBITDA and non-GAAP adjusted net income attributable to common stockholders guidance to the closest corresponding GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures. In particular, non-ordinary course litigation expense, acquisition-related expense and tax windfall adjustments can have unpredictable fluctuations based on unforeseen activity that is out of our control and/or cannot reasonably be predicted. We expect the above charges to have a significant and potentially highly variable impact on our future GAAP financial results.
We exclude one or more of the following items from non-GAAP financial and operating measures:
Interest expense: We record interest expense primarily related to the
Interest income and certain activity within other income / (expense), net: We exclude interest income as well as certain activity within other income / (expense), net including gains, losses or impairments on investments and other assets, gains on settlement fees as well as losses on the early extinguishment of the debt, when applicable, from our non-GAAP financial measures because we do not consider it part of our ongoing results of operations.
Provision for / (benefit from) income taxes: We exclude the impact related to our provision for / (benefit from) income taxes from our non-GAAP adjusted EBITDA calculation. We do not consider this tax adjustment to be part of our ongoing results of operations.
Amortization expense: GAAP requires that operating expenses include the amortization of acquired intangible assets, which principally include acquired customer relationships, developed technology and trade names. We exclude amortization of intangibles from our non-GAAP financial measures because we do not consider amortization expense when we evaluate our ongoing business operations, nor do we factor amortization expense into our evaluation of potential acquisitions, or our measurement of the performance of those acquisitions. We believe that the exclusion of amortization expense enables the comparison of our performance to other companies in our industry as other companies may be more or less acquisitive than us and therefore, amortization expense may vary significantly by company based on their acquisition history. Although we exclude amortization of acquired intangible assets from our non-GAAP financial measures, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation.
Depreciation expense: We record depreciation primarily for investments in property and equipment. We exclude depreciation in calculating non-GAAP adjusted EBITDA because we do not consider depreciation when we evaluate our ongoing business operations. For non-GAAP adjusted net income, non-GAAP adjusted net income attributable to common stockholders and non-GAAP adjusted net income attributable to common stockholders per share, basic and diluted, we do not exclude depreciation.
Amortization of debt issuance costs and debt discount: We record amortization of debt issuance costs and previously recorded amortization of debt discount related to the 2026 Notes as interest expense. We exclude amortization of debt issuance costs and debt discount from our non-GAAP adjusted net income, non-GAAP adjusted net income attributable to common stockholders and non-GAAP adjusted net income attributable to common stockholders per share, basic and diluted, because we believe that the exclusion of this non-cash interest expense will provide for more meaningful information about our financial performance.
Stock-based compensation expense: We exclude stock-based compensation expense, which relates to restricted stock units and other forms of equity incentives primarily awarded to employees of
Acquisition-related expense: Included in operating expenses are incremental costs directly related to business and asset acquisitions as well as changes in the fair value of contingent consideration liabilities, when applicable. We exclude acquisition-related expense from our non-GAAP financial measures because we believe that the exclusion of this expense allows us to better provide meaningful information about our operating performance, facilitates comparisons to our historical operating results, improves the comparability of our results to the results of other companies in our industry, and ultimately, we believe helps investors better understand the acquisition-related expense and the effects of the transaction on our results of operations.
Litigation expense: We exclude non-ordinary course litigation expense because we do not consider legal costs and settlement fees incurred and received in litigation and litigation-related matters of non-ordinary course lawsuits and other disputes, particularly costs incurred in ongoing intellectual property litigation, to be indicative of our core operating performance. We do not adjust for ordinary course legal expenses, including those expenses resulting from maintaining and enforcing our intellectual property portfolio and license agreements.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by their use of terms and phrases such as “anticipate,” “believe,” “continue,” “designed,” “enable,” “ensure,” “expect,” “intend,” “will,” and other similar terms and phrases, and such forward-looking statements include, but are not limited to, the statements regarding the Company’s opportunities, positioning, the benefits of recently launched offerings, acquisitions and investments, and the Company’s guidance for the first quarter and full year 2024 described under “Financial Outlook” above and key assumptions related thereto. The events described in these forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated by these forward-looking statements, including, but not limited to: impact of the global economic uncertainty and financial market conditions caused by significant worldwide events, including public health crises, geopolitical upheaval, such as Russia’s incursion into
Consolidated Statements of Operations (in thousands, except share and per share data) |
|||||||||||||||||||
|
Three Months Ended
|
|
Year Ended |
||||||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
2021 |
||||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
||||||||||
SaaS and license revenue |
$ |
148,347 |
|
|
$ |
134,551 |
|
|
$ |
569,200 |
|
|
$ |
520,377 |
|
|
$ |
460,372 |
|
Hardware and other revenue |
|
77,890 |
|
|
|
73,588 |
|
|
|
312,482 |
|
|
|
322,182 |
|
|
|
288,597 |
|
Total revenue |
|
226,237 |
|
|
|
208,139 |
|
|
|
881,682 |
|
|
|
842,559 |
|
|
|
748,969 |
|
Cost of revenue(1): |
|
|
|
|
|
|
|
|
|
||||||||||
Cost of SaaS and license revenue |
|
22,822 |
|
|
|
19,878 |
|
|
|
85,898 |
|
|
|
73,897 |
|
|
|
66,758 |
|
Cost of hardware and other revenue |
|
58,393 |
|
|
|
59,694 |
|
|
|
239,261 |
|
|
|
268,684 |
|
|
|
239,141 |
|
Total cost of revenue |
|
81,215 |
|
|
|
79,572 |
|
|
|
325,159 |
|
|
|
342,581 |
|
|
|
305,899 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
||||||||||
Sales and marketing |
|
25,948 |
|
|
|
23,566 |
|
|
|
100,226 |
|
|
|
92,748 |
|
|
|
86,664 |
|
General and administrative |
|
24,177 |
|
|
|
25,374 |
|
|
|
112,930 |
|
|
|
106,688 |
|
|
|
87,406 |
|
Research and development |
|
61,274 |
|
|
|
57,408 |
|
|
|
245,114 |
|
|
|
218,635 |
|
|
|
177,713 |
|
Amortization and depreciation |
|
7,943 |
|
|
|
7,747 |
|
|
|
31,424 |
|
|
|
30,870 |
|
|
|
29,715 |
|
Total operating expenses |
|
119,342 |
|
|
|
114,095 |
|
|
|
489,694 |
|
|
|
448,941 |
|
|
|
381,498 |
|
Operating income |
|
25,680 |
|
|
|
14,472 |
|
|
|
66,829 |
|
|
|
51,037 |
|
|
|
61,572 |
|
Interest expense |
|
(828 |
) |
|
|
(788 |
) |
|
|
(3,429 |
) |
|
|
(3,144 |
) |
|
|
(15,956 |
) |
Interest income |
|
8,709 |
|
|
|
4,697 |
|
|
|
29,801 |
|
|
|
8,759 |
|
|
|
587 |
|
Other income / (expense), net |
|
5,838 |
|
|
|
(101 |
) |
|
|
4,624 |
|
|
|
(59 |
) |
|
|
(134 |
) |
Income before income taxes |
|
39,399 |
|
|
|
18,280 |
|
|
|
97,825 |
|
|
|
56,593 |
|
|
|
46,069 |
|
Provision for / (benefit from) income taxes |
|
8,228 |
|
|
|
490 |
|
|
|
17,485 |
|
|
|
962 |
|
|
|
(5,106 |
) |
Net income |
|
31,171 |
|
|
|
17,790 |
|
|
|
80,340 |
|
|
|
55,631 |
|
|
|
51,175 |
|
Net loss attributable to redeemable noncontrolling interests |
|
133 |
|
|
|
295 |
|
|
|
703 |
|
|
|
707 |
|
|
|
1,084 |
|
Net income attributable to common stockholders |
$ |
31,304 |
|
|
$ |
18,085 |
|
|
$ |
81,043 |
|
|
$ |
56,338 |
|
|
$ |
52,259 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Per share information attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
||||||||||
Net income per share: |
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
$ |
0.63 |
|
|
$ |
0.36 |
|
|
$ |
1.63 |
|
|
$ |
1.13 |
|
|
$ |
1.05 |
|
Diluted |
$ |
0.58 |
|
|
$ |
0.34 |
|
|
$ |
1.53 |
|
|
$ |
1.07 |
|
|
$ |
1.01 |
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
49,924,910 |
|
|
|
49,781,756 |
|
|
|
49,818,448 |
|
|
|
49,926,236 |
|
|
|
49,869,857 |
|
Diluted |
|
54,711,605 |
|
|
|
54,534,956 |
|
|
|
54,625,434 |
|
|
|
54,932,757 |
|
|
|
51,919,902 |
|
______________________________ |
|||||||||||||||||||
(1) Exclusive of amortization and depreciation shown in operating expenses below. |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Stock-based compensation expense data: |
Three Months Ended
|
|
Year Ended |
||||||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
2021 |
||||||||||
Cost of hardware and other revenue |
$ |
2 |
|
|
$ |
— |
|
|
$ |
5 |
|
|
$ |
— |
|
|
$ |
— |
|
Sales and marketing |
|
744 |
|
|
|
861 |
|
|
|
3,522 |
|
|
|
4,342 |
|
|
|
4,432 |
|
General and administrative |
|
3,155 |
|
|
|
3,902 |
|
|
|
13,028 |
|
|
|
15,037 |
|
|
|
9,941 |
|
Research and development |
|
6,959 |
|
|
|
9,838 |
|
|
|
30,728 |
|
|
|
33,275 |
|
|
|
24,321 |
|
Total stock-based compensation expense |
$ |
10,860 |
|
|
$ |
14,601 |
|
|
$ |
47,283 |
|
|
$ |
52,654 |
|
|
$ |
38,694 |
|
Consolidated Balance Sheets (in thousands, except share and per share data) |
|||||||
|
|
||||||
|
2023 |
|
2022 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
696,983 |
|
|
$ |
622,165 |
|
Accounts receivable, net of allowance for credit losses of |
|
130,626 |
|
|
|
124,283 |
|
Inventory |
|
96,140 |
|
|
|
115,584 |
|
Other current assets, net |
|
33,031 |
|
|
|
29,056 |
|
Total current assets |
|
956,780 |
|
|
|
891,088 |
|
Property and equipment, net |
|
54,164 |
|
|
|
57,172 |
|
Intangible assets, net |
|
78,564 |
|
|
|
82,458 |
|
|
|
154,498 |
|
|
|
148,183 |
|
Deferred tax assets |
|
131,815 |
|
|
|
84,185 |
|
Operating lease right-of-use assets |
|
24,242 |
|
|
|
28,933 |
|
Other assets, net of allowance for credit losses of |
|
39,500 |
|
|
|
37,356 |
|
Total assets |
$ |
1,439,563 |
|
|
$ |
1,329,375 |
|
Liabilities, redeemable noncontrolling interests and stockholders’ equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable, accrued expenses and other current liabilities |
$ |
124,475 |
|
|
$ |
119,657 |
|
Accrued compensation |
|
28,626 |
|
|
|
25,582 |
|
Deferred revenue |
|
10,193 |
|
|
|
7,540 |
|
Operating lease liabilities |
|
12,043 |
|
|
|
12,157 |
|
Total current liabilities |
|
175,337 |
|
|
|
164,936 |
|
Deferred revenue |
|
12,692 |
|
|
|
10,792 |
|
Convertible senior notes, net |
|
493,515 |
|
|
|
490,370 |
|
Operating lease liabilities |
|
20,468 |
|
|
|
27,380 |
|
Other liabilities |
|
12,697 |
|
|
|
13,050 |
|
Total liabilities |
|
714,709 |
|
|
|
706,528 |
|
Redeemable noncontrolling interests |
|
36,308 |
|
|
|
23,988 |
|
Stockholders’ equity |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
519 |
|
|
|
510 |
|
Additional paid-in capital |
|
531,734 |
|
|
|
497,199 |
|
|
|
(111,291 |
) |
|
|
(83,993 |
) |
Accumulated other comprehensive income |
|
1,398 |
|
|
|
— |
|
Retained earnings |
|
266,186 |
|
|
|
185,143 |
|
Total stockholders’ equity |
|
688,546 |
|
|
|
598,859 |
|
Total liabilities, redeemable noncontrolling interests and stockholders’ equity |
$ |
1,439,563 |
|
|
$ |
1,329,375 |
|
Consolidated Statements of Cash Flows (in thousands) |
|||||||||||
|
Year Ended |
||||||||||
Cash flows from operating activities: |
2023 |
|
2022 |
|
2021 |
||||||
Net income |
$ |
80,340 |
|
|
$ |
55,631 |
|
|
$ |
51,175 |
|
Adjustments to reconcile net income to net cash flows from operating activities: |
|
|
|
|
|
||||||
Provision for / (recovery of) credit losses on accounts receivable |
|
1,508 |
|
|
|
1,156 |
|
|
|
(775 |
) |
Reserve for product returns |
|
4,399 |
|
|
|
4,746 |
|
|
|
2,494 |
|
Provision for / (recovery of) credit losses on notes receivable |
|
3 |
|
|
|
(78 |
) |
|
|
(9 |
) |
Inventory write-down |
|
1,420 |
|
|
|
— |
|
|
|
448 |
|
Amortization on patents and tooling |
|
1,213 |
|
|
|
1,359 |
|
|
|
1,240 |
|
Amortization and depreciation |
|
31,424 |
|
|
|
30,870 |
|
|
|
29,715 |
|
Amortization of debt issuance costs and debt discount |
|
3,145 |
|
|
|
3,126 |
|
|
|
15,823 |
|
Amortization of operating leases |
|
11,484 |
|
|
|
10,499 |
|
|
|
9,692 |
|
Deferred income taxes |
|
(47,730 |
) |
|
|
(55,039 |
) |
|
|
(10,115 |
) |
Change in fair value of contingent liability |
|
68 |
|
|
|
— |
|
|
|
— |
|
Stock-based compensation |
|
47,283 |
|
|
|
52,654 |
|
|
|
38,694 |
|
(Gain on) / impairment of investment or intangible assets |
|
— |
|
|
|
(140 |
) |
|
|
86 |
|
Loss on early extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
185 |
|
Changes in operating assets and liabilities (net of business acquisitions): |
|
|
|
|
|
||||||
Accounts receivable |
|
(10,536 |
) |
|
|
(24,346 |
) |
|
|
(23,941 |
) |
Inventory |
|
20,961 |
|
|
|
(40,308 |
) |
|
|
(31,443 |
) |
Other current and non-current assets |
|
(1,338 |
) |
|
|
(8,952 |
) |
|
|
(11,912 |
) |
Accounts payable, accrued expenses and other current liabilities |
|
4,613 |
|
|
|
32,938 |
|
|
|
39,418 |
|
Deferred revenue |
|
4,553 |
|
|
|
3,428 |
|
|
|
2,308 |
|
Operating lease liabilities |
|
(13,947 |
) |
|
|
(12,723 |
) |
|
|
(11,809 |
) |
Other liabilities |
|
(2,898 |
) |
|
|
2,080 |
|
|
|
1,883 |
|
Cash flows from operating activities |
|
135,965 |
|
|
|
56,901 |
|
|
|
103,157 |
|
Cash flows used in investing activities: |
|
|
|
|
|
||||||
Business acquisition, net of cash acquired |
|
(9,696 |
) |
|
|
(31,730 |
) |
|
|
— |
|
Additions to property and equipment |
|
(7,517 |
) |
|
|
(28,640 |
) |
|
|
(11,062 |
) |
Issuances of notes receivable |
|
(450 |
) |
|
|
(3,000 |
) |
|
|
— |
|
Capitalized software development costs |
|
(743 |
) |
|
|
— |
|
|
|
— |
|
Receipt of payments on notes receivable |
|
55 |
|
|
|
61 |
|
|
|
59 |
|
Purchase of investment in unconsolidated entity |
|
(1,700 |
) |
|
|
(5,150 |
) |
|
|
(5,000 |
) |
Proceeds from sale of investment |
|
— |
|
|
|
140 |
|
|
|
— |
|
Purchases of developed technology and other assets |
|
(5,915 |
) |
|
|
— |
|
|
|
(4,362 |
) |
Cash flows used in investing activities |
|
(25,966 |
) |
|
|
(68,319 |
) |
|
|
(20,365 |
) |
Cash flows (used in) / from financing activities: |
|
|
|
|
|
||||||
Repayments of credit facility |
|
— |
|
|
|
— |
|
|
|
(110,000 |
) |
Proceeds from issuance of convertible senior notes |
|
— |
|
|
|
— |
|
|
|
500,000 |
|
Payments of debt issuance costs |
|
— |
|
|
|
— |
|
|
|
(15,698 |
) |
Payments of deferred consideration for acquisitions |
|
(1,672 |
) |
|
|
(1,500 |
) |
|
|
(1,160 |
) |
Purchases of treasury stock, including transaction costs |
|
(27,298 |
) |
|
|
(78,844 |
) |
|
|
— |
|
Purchases of redeemable noncontrolling interest |
|
(832 |
) |
|
|
— |
|
|
|
— |
|
Payments of acquired debt |
|
(3,040 |
) |
|
|
— |
|
|
|
— |
|
Payments of tax withholdings related to vesting of restricted stock units |
|
(2,621 |
) |
|
|
— |
|
|
|
(4,476 |
) |
Issuances of common stock from equity-based plans |
|
3,598 |
|
|
|
4,020 |
|
|
|
5,704 |
|
Cash flows (used in) / from financing activities |
|
(31,865 |
) |
|
|
(76,324 |
) |
|
|
374,370 |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
66 |
|
|
|
— |
|
|
|
— |
|
Net increase / (decrease) in cash, cash equivalents and restricted cash |
|
78,200 |
|
|
|
(87,742 |
) |
|
|
457,162 |
|
Cash, cash equivalents and restricted cash at beginning of the period |
|
622,879 |
|
|
|
710,621 |
|
|
|
253,459 |
|
Cash, cash equivalents and restricted cash at end of the period |
$ |
701,079 |
|
|
$ |
622,879 |
|
|
$ |
710,621 |
|
|
|
|
|
|
|
||||||
Reconciliation of cash, cash equivalents and restricted cash: |
|
|
|
|
|
||||||
Cash and cash equivalents |
$ |
696,983 |
|
|
$ |
622,165 |
|
|
$ |
710,621 |
|
Restricted cash included in other current assets and other assets |
|
4,096 |
|
|
|
714 |
|
|
|
— |
|
Total cash, cash equivalents and restricted cash |
$ |
701,079 |
|
|
$ |
622,879 |
|
|
$ |
710,621 |
|
Reconciliation of Non-GAAP Measures (in thousands) (unaudited) |
|||||||||||||||||||
|
Three Months Ended
|
|
Year Ended |
||||||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
2021 |
||||||||||
Non-GAAP adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
||||||||||
Net income |
$ |
31,171 |
|
|
$ |
17,790 |
|
|
$ |
80,340 |
|
|
$ |
55,631 |
|
|
$ |
51,175 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, interest income and certain activity within other income / (expense), net |
|
(13,738 |
) |
|
|
(3,909 |
) |
|
|
(32,229 |
) |
|
|
(5,768 |
) |
|
|
15,503 |
|
Provision for / (benefit from) income taxes |
|
8,228 |
|
|
|
490 |
|
|
|
17,485 |
|
|
|
962 |
|
|
|
(5,106 |
) |
Amortization and depreciation expense |
|
7,943 |
|
|
|
7,747 |
|
|
|
31,424 |
|
|
|
30,870 |
|
|
|
29,715 |
|
Stock-based compensation expense |
|
10,860 |
|
|
|
14,601 |
|
|
|
47,283 |
|
|
|
52,654 |
|
|
|
38,694 |
|
Acquisition-related expense |
|
45 |
|
|
|
331 |
|
|
|
621 |
|
|
|
1,059 |
|
|
|
29 |
|
Litigation expense |
|
1,075 |
|
|
|
1,904 |
|
|
|
9,043 |
|
|
|
11,440 |
|
|
|
12,462 |
|
Total adjustments |
|
14,413 |
|
|
|
21,164 |
|
|
|
73,627 |
|
|
|
91,217 |
|
|
|
91,297 |
|
Non-GAAP adjusted EBITDA |
$ |
45,584 |
|
|
$ |
38,954 |
|
|
$ |
153,967 |
|
|
$ |
146,848 |
|
|
$ |
142,472 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended
|
|
Year Ended |
||||||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
2021 |
||||||||||
Non-GAAP adjusted net income: |
|
|
|
|
|
|
|
|
|
||||||||||
Net income, as reported |
$ |
31,171 |
|
|
$ |
17,790 |
|
|
$ |
80,340 |
|
|
$ |
55,631 |
|
|
$ |
51,175 |
|
Provision for / (benefit from) income taxes |
|
8,228 |
|
|
|
490 |
|
|
|
17,485 |
|
|
|
962 |
|
|
|
(5,106 |
) |
Income before income taxes |
|
39,399 |
|
|
|
18,280 |
|
|
|
97,825 |
|
|
|
56,593 |
|
|
|
46,069 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
Less: interest income and certain activity within other income / (expense), net |
|
(14,566 |
) |
|
|
(4,697 |
) |
|
|
(35,658 |
) |
|
|
(8,912 |
) |
|
|
(453 |
) |
Amortization expense |
|
5,195 |
|
|
|
4,782 |
|
|
|
20,271 |
|
|
|
18,706 |
|
|
|
17,347 |
|
Amortization of debt issuance costs and debt discount |
|
788 |
|
|
|
784 |
|
|
|
3,145 |
|
|
|
3,126 |
|
|
|
15,817 |
|
Stock-based compensation expense |
|
10,860 |
|
|
|
14,601 |
|
|
|
47,283 |
|
|
|
52,654 |
|
|
|
38,694 |
|
Acquisition-related expense |
|
45 |
|
|
|
331 |
|
|
|
621 |
|
|
|
1,059 |
|
|
|
29 |
|
Litigation expense |
|
1,075 |
|
|
|
1,904 |
|
|
|
9,043 |
|
|
|
11,440 |
|
|
|
12,462 |
|
Non-GAAP adjusted income before income taxes |
|
42,796 |
|
|
|
35,985 |
|
|
|
142,530 |
|
|
|
134,666 |
|
|
|
129,965 |
|
Income taxes 1 |
|
(8,987 |
) |
|
|
(7,557 |
) |
|
|
(29,931 |
) |
|
|
(28,280 |
) |
|
|
(27,293 |
) |
Non-GAAP adjusted net income |
$ |
33,809 |
|
|
$ |
28,428 |
|
|
$ |
112,599 |
|
|
$ |
106,386 |
|
|
$ |
102,672 |
|
1 Income taxes are calculated using a rate of 21.0% for each of the years ended |
Reconciliation of Non-GAAP Measures - continued (in thousands, except share and per share data) (unaudited) |
|||||||||||||||||||
|
Three Months Ended
|
|
Year Ended |
||||||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
2021 |
||||||||||
Non-GAAP adjusted net income attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to common stockholders, as reported |
$ |
31,304 |
|
|
$ |
18,085 |
|
|
$ |
81,043 |
|
|
$ |
56,338 |
|
|
$ |
52,259 |
|
Provision for / (benefit from) income taxes |
|
8,228 |
|
|
|
490 |
|
|
|
17,485 |
|
|
|
962 |
|
|
|
(5,106 |
) |
Income attributable to common stockholders before income taxes |
|
39,532 |
|
|
|
18,575 |
|
|
|
98,528 |
|
|
|
57,300 |
|
|
|
47,153 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
Less: interest income and certain activity within other income / (expense), net |
|
(14,566 |
) |
|
|
(4,697 |
) |
|
|
(35,658 |
) |
|
|
(8,912 |
) |
|
|
(453 |
) |
Amortization expense |
|
5,195 |
|
|
|
4,782 |
|
|
|
20,271 |
|
|
|
18,706 |
|
|
|
17,347 |
|
Amortization of debt issuance costs and debt discount |
|
788 |
|
|
|
784 |
|
|
|
3,145 |
|
|
|
3,126 |
|
|
|
15,817 |
|
Stock-based compensation expense |
|
10,860 |
|
|
|
14,601 |
|
|
|
47,283 |
|
|
|
52,654 |
|
|
|
38,694 |
|
Acquisition-related expense |
|
45 |
|
|
|
331 |
|
|
|
621 |
|
|
|
1,059 |
|
|
|
29 |
|
Litigation expense |
|
1,075 |
|
|
|
1,904 |
|
|
|
9,043 |
|
|
|
11,440 |
|
|
|
12,462 |
|
Non-GAAP adjusted income attributable to common stockholders before income taxes |
|
42,929 |
|
|
|
36,280 |
|
|
|
143,233 |
|
|
|
135,373 |
|
|
|
131,049 |
|
Income taxes 1 |
|
(9,015 |
) |
|
|
(7,618 |
) |
|
|
(30,079 |
) |
|
|
(28,428 |
) |
|
|
(27,520 |
) |
Non-GAAP adjusted net income attributable to common stockholders |
$ |
33,914 |
|
|
$ |
28,662 |
|
|
$ |
113,154 |
|
|
$ |
106,945 |
|
|
$ |
103,529 |
|
|
Three Months Ended
|
|
Year Ended |
||||||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
2021 |
||||||||||
Non-GAAP adjusted net income attributable to common stockholders per share: |
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to common stockholders per share - basic, as reported |
$ |
0.63 |
|
|
$ |
0.36 |
|
|
$ |
1.63 |
|
|
$ |
1.13 |
|
|
$ |
1.05 |
|
Provision for / (benefit from) income taxes |
|
0.16 |
|
|
|
0.01 |
|
|
|
0.35 |
|
|
|
0.02 |
|
|
|
(0.10 |
) |
Income attributable to common stockholders before income taxes |
|
0.79 |
|
|
|
0.37 |
|
|
|
1.98 |
|
|
|
1.15 |
|
|
|
0.95 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
Less: interest income and certain activity within other income / (expense), net |
|
(0.29 |
) |
|
|
(0.09 |
) |
|
|
(0.72 |
) |
|
|
(0.18 |
) |
|
|
(0.01 |
) |
Amortization expense |
|
0.10 |
|
|
|
0.10 |
|
|
|
0.41 |
|
|
|
0.37 |
|
|
|
0.35 |
|
Amortization of debt issuance costs and debt discount |
|
0.02 |
|
|
|
0.02 |
|
|
|
0.06 |
|
|
|
0.06 |
|
|
|
0.32 |
|
Stock-based compensation expense |
|
0.22 |
|
|
|
0.28 |
|
|
|
0.95 |
|
|
|
1.05 |
|
|
|
0.77 |
|
Acquisition-related expense |
|
— |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.02 |
|
|
|
— |
|
Litigation expense |
|
0.02 |
|
|
|
0.04 |
|
|
|
0.18 |
|
|
|
0.24 |
|
|
|
0.25 |
|
Non-GAAP adjusted income attributable to common stockholders before income taxes |
|
0.86 |
|
|
|
0.73 |
|
|
|
2.87 |
|
|
|
2.71 |
|
|
|
2.63 |
|
Income taxes 1 |
|
(0.18 |
) |
|
|
(0.15 |
) |
|
|
(0.60 |
) |
|
|
(0.57 |
) |
|
|
(0.55 |
) |
Non-GAAP adjusted net income attributable to common stockholders per share - basic |
$ |
0.68 |
|
|
$ |
0.58 |
|
|
$ |
2.27 |
|
|
$ |
2.14 |
|
|
$ |
2.08 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-GAAP adjusted net income attributable to common stockholders per share - diluted |
$ |
0.62 |
|
|
$ |
0.53 |
|
|
$ |
2.07 |
|
|
$ |
1.95 |
|
|
$ |
1.99 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
||||||||||
Basic, as reported |
|
49,924,910 |
|
|
|
49,781,756 |
|
|
|
49,818,448 |
|
|
|
49,926,236 |
|
|
|
49,869,857 |
|
Diluted, as reported |
|
54,711,605 |
|
|
|
54,534,956 |
|
|
|
54,625,434 |
|
|
|
54,932,757 |
|
|
|
51,919,902 |
|
1 Income taxes are calculated using a rate of 21.0% for each of the years ended |
Reconciliation of Non-GAAP Measures - continued (dollars in thousands) (unaudited) |
|||||||||||||||||||
|
Three Months Ended
|
|
Year Ended |
||||||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
2021 |
||||||||||
Non-GAAP free cash flow: |
|
|
|
|
|
|
|
|
|
||||||||||
Cash flows from operating activities |
$ |
39,872 |
|
|
$ |
34,446 |
|
|
$ |
135,965 |
|
|
$ |
56,901 |
|
|
$ |
103,157 |
|
Additions to property and equipment |
|
(2,168 |
) |
|
|
(556 |
) |
|
|
(7,517 |
) |
|
|
(28,640 |
) |
|
|
(11,062 |
) |
Non-GAAP free cash flow |
$ |
37,704 |
|
|
$ |
33,890 |
|
|
$ |
128,448 |
|
|
$ |
28,261 |
|
|
$ |
92,095 |
|
|
Three Months Ended
|
|
Year Ended |
||||||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
2021 |
||||||||||
Non-GAAP adjusted SaaS and license revenue: |
|
|
|
|
|
|
|
|
|
||||||||||
SaaS and license revenue |
$ |
148,347 |
|
$ |
134,551 |
|
$ |
569,200 |
|
$ |
520,377 |
|
|
$ |
460,372 |
|
|||
License revenue from |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(16,631 |
) |
|
|
(20,200 |
) |
Non-GAAP adjusted SaaS and license revenue |
$ |
148,347 |
|
|
$ |
134,551 |
|
|
$ |
569,200 |
|
|
$ |
503,746 |
|
|
$ |
440,172 |
|
Full Year 2023 as Compared to Full Year 2022: |
Year Ended
|
|
SaaS and license revenue growth rate |
9.4 |
% |
Adjustment to SaaS and license revenue growth rate for |
3.6 |
|
Non-GAAP adjusted SaaS and license revenue growth rate |
13.0 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240222993550/en/
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Source: