GitLab Reports Fourth Quarter and Full Fiscal Year 2025 Financial Results
Fourth Quarter Fiscal Year 2025 Highlights:
-
Total revenue of
$211.4 million , up 29% year-over-year
- GAAP operating margin of (7)%; non-GAAP operating margin of 18%
-
Operating cash flow of
$63.2 million and non-GAAP adjusted free cash flow of$62.1 million
Fiscal Year 2025 Highlights:
-
Total revenue of
$759.2 million , up 31% year-over-year
- GAAP operating margin of (18)%; non-GAAP operating margin of 10%
-
Operating cash flow of
$(64.0) million and non-GAAP adjusted free cash flow of$120.0 million
“This quarter’s results demonstrate the power of GitLab’s innovative DevSecOps platform,” said Bill Staples,
“We reported a very strong fourth quarter for fiscal year 2025 highlighted by 29% year-over-year revenue growth and meaningful operating margin expansion,” said
GitLab Names Chief Revenue Officer
Interim CRO, and Chief Marketing and Strategy Officer
GitLab Appoints New Member to Board of Directors
The company announced the appointment of
Fourth Quarter Fiscal Year 2025 Financial Highlights (in millions, except per share data and percentages):
|
|
Q4 FY 2025 |
|
Q4 FY 2024 |
|
Y/Y Change |
||||||
|
Revenue |
$ |
211.4 |
|
|
$ |
163.8 |
|
|
|
29 |
% |
|
GAAP Gross margin |
|
89 |
% |
|
|
90 |
% |
|
|
||
|
Non-GAAP Gross margin |
|
91 |
% |
|
|
92 |
% |
|
|
||
|
GAAP Operating margin |
|
(7 |
)% |
|
|
(21 |
)% |
|
|
||
|
Non-GAAP Operating margin |
|
18 |
% |
|
|
8 |
% |
|
|
||
|
GAAP Operating loss |
$ |
(15.4 |
) |
|
$ |
(34.9 |
) |
|
$ |
19.5 |
|
|
Non-GAAP Operating income |
$ |
37.4 |
|
|
$ |
13.2 |
|
|
$ |
24.2 |
|
|
GAAP Net income (loss) attributable to |
$ |
10.8 |
|
|
$ |
(36.9 |
) |
|
$ |
47.7 |
|
|
Non-GAAP Net income attributable to |
$ |
56.7 |
|
|
$ |
25.0 |
|
|
$ |
31.7 |
|
|
GAAP Net income (loss) per share attributable to |
$ |
0.07 |
|
|
$ |
(0.24 |
) |
|
$ |
0.31 |
|
|
GAAP Net income (loss) per share attributable to |
$ |
0.06 |
|
|
$ |
(0.24 |
) |
|
$ |
0.30 |
|
|
Non-GAAP Net income per share attributable to |
$ |
0.35 |
|
|
$ |
0.16 |
|
|
$ |
0.19 |
|
|
Non-GAAP Net income per share attributable to |
$ |
0.33 |
|
|
$ |
0.15 |
|
|
$ |
0.18 |
|
|
GAAP net cash provided by operating activities |
$ |
63.2 |
|
|
$ |
24.9 |
|
|
$ |
38.3 |
|
|
Non-GAAP adjusted free cash flow |
$ |
62.1 |
|
|
$ |
24.5 |
|
|
$ |
37.6 |
|
Fiscal Year 2025 Financial Highlights (in millions, except per share data and percentages):
|
|
FY 2025 |
|
FY 2024 |
|
Y/Y Change |
||||||
|
Revenue |
$ |
759.2 |
|
|
$ |
579.9 |
|
|
|
31 |
% |
|
GAAP Gross margin |
|
89 |
% |
|
|
90 |
% |
|
|
||
|
Non-GAAP Gross margin |
|
91 |
% |
|
|
91 |
% |
|
|
||
|
GAAP Operating margin |
|
(18 |
)% |
|
|
(32 |
)% |
|
|
||
|
Non-GAAP Operating margin |
|
10 |
% |
|
|
(0.2 |
)% |
|
|
||
|
GAAP Operating loss |
$ |
(138.8 |
) |
|
$ |
(187.4 |
) |
|
$ |
48.6 |
|
|
Non-GAAP Operating income (loss) |
$ |
77.6 |
|
|
$ |
(1.4 |
) |
|
$ |
79.0 |
|
|
GAAP Net loss attributable to |
$ |
(2.4 |
) |
|
$ |
(425.7 |
) |
|
$ |
423.3 |
|
|
Non-GAAP Net income attributable to |
$ |
124.8 |
|
|
$ |
32.6 |
|
|
$ |
92.2 |
|
|
GAAP Net loss per share attributable to |
$ |
(0.02 |
) |
|
$ |
(2.76 |
) |
|
$ |
2.74 |
|
|
GAAP Net loss per share attributable to |
$ |
(0.02 |
) |
|
$ |
(2.76 |
) |
|
$ |
2.74 |
|
|
Non-GAAP Net income per share attributable to |
$ |
0.78 |
|
|
$ |
0.21 |
|
|
$ |
0.57 |
|
|
Non-GAAP Net income per share attributable to |
$ |
0.74 |
|
|
$ |
0.20 |
|
|
$ |
0.54 |
|
|
GAAP net cash provided by (used in) operating activities |
$ |
(64.0 |
) |
|
$ |
35.0 |
|
|
$ |
(99.0 |
) |
|
Non-GAAP adjusted free cash flow |
$ |
120.0 |
|
|
$ |
33.4 |
|
|
$ |
86.6 |
|
A reconciliation between GAAP and non-GAAP financial measures is contained in this release under the section titled “Non-GAAP Financial Measures.”
Additional Financial Highlights:
-
Customers with more than
$5,000 of ARR reached 9,893, an increase of 15% year-over-year. -
Customers with more than
$100,000 of ARR reached 1,229, an increase of 29% year-over-year. -
Customers with more than
$1M of ARR increased to 123, up 28% from Q4 of fiscal year 2024. - Dollar-Based Net Retention Rate was 123%.
-
Total RPO grew 40% year-over-year to
$945.0 million , while cRPO grew 35% to$579.2 million .
Business Highlights:
- Announced the general availability of GitLab Duo Self-Hosted, which allows customers to maintain full control over their data privacy, security, and the deployment of LLMs.
- Announced the private beta of GitLab Duo Workflow.
- Recognized as a Gartner® Peer Insights™ Customers’ Choice in the 2025 Voice of the Customer for DevOps Platforms Report1.
-
Named
Ian Steward as Chief Revenue Officer (CRO), effectiveMay 3, 2025 . -
Announced the appointment of
David Henshall to GitLab’s board of directors.
First Quarter and Fiscal Year 2026 Financial Outlook
This afternoon’s first quarter and fiscal year 2026 financial outlook applies a new 22% long-term non-GAAP projected tax rate. This rate reflects the new location of GitLab’s intellectual property in the
For the first quarter and fiscal year 2026,
|
|
Q1 FY 2026 Guidance |
|
FY 2026 Guidance |
|
Revenue |
|
|
|
|
Non-GAAP operating income |
|
|
|
|
Non-GAAP diluted net income per share assuming approximately 172 million and 173 million weighted average shares outstanding during Q1 FY 2026 and FY 2026, respectively. |
|
|
|
These statements are forward-looking and actual results may differ materially as a result of many factors. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.
A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below in Non-GAAP Financial Measures. We have not provided the most directly comparable GAAP financial guidance measures because certain items are out of our control or cannot be reasonably predicted. Accordingly, a reconciliation of non-GAAP guidance for operating income (loss) and net income (loss) per share to the corresponding GAAP measures is not available.
__________
1 Gartner®, Voice of the Customer for DevOps Platforms, Peer Contributors,
GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the
Gartner Peer Insights content consists of the opinions of individual end users based on their own experiences, and should not be construed as statements of fact, nor do they represent the views of Gartner or its affiliates. Gartner does not endorse any vendor, product or service depicted in this content nor makes any warranties, expressed or implied, with respect to this content, about its accuracy or completeness, including any warranties of merchantability or fitness for a particular purpose.
The Gartner content described herein (the “Gartner Content”) represents research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and is not a representation of fact. Gartner Content speaks as of its original publication date (and not as of the date of this Earnings Press Release), and the opinions expressed in the Gartner Content are subject to change without notice.
Revision of Previously Issued Financial Statements:
Certain prior period amounts included in this release have been revised. During the current reporting period, the Company identified certain prior period adjustments, including with respect to the recognition and presentation of liabilities incurred at the formation of our GitLab Information Technology (
Conference Call Information
About
Non-GAAP Financial Measures
Adjusted Free Cash Flow
Adjusted free cash flow is a non-GAAP financial measure that we calculate as net cash provided by operating activities less cash used for purchases of property and equipment, plus any non-recurring income tax payments related to BAPA, plus any non-recurring payments related to the formation of JiHu. We believe that adjusted free cash flow is a useful indicator of liquidity that provides information to management and investors about the amount of cash generated from our operations that, after the investments in property and equipment, any non-recurring income tax payments related to BAPA, and any non-recurring payments related to the formation of JiHu, can be used for strategic initiatives, including investing in our business, and strengthening our financial position. One limitation of adjusted free cash flow is that it does not reflect our future contractual commitments. Additionally, adjusted free cash flow does not represent the total increase or decrease in our cash balance for a given period.
Forward-Looking Statements
This press release and the accompanying earnings call contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Although we believe that the expectations reflected in the forward-looking statements contained in this release and the accompanying earnings call are reasonable, they are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause actual results or outcomes to be materially different from any future results or outcomes expressed or implied by the forward-looking statements. These risks, uncertainties, assumptions, and other factors include, but are not limited to the following:
- our ability to effectively manage our growth;
- our revenue growth rate in the future;
- our ability to achieve and sustain profitability, our business, financial condition, and operating results;
- security and privacy breaches;
- intense competition in our markets and loss of market share to our competitors;
- our ability to respond to rapid technological changes;
- the market for our services may not grow;
- a decline in our customer renewals and expansions;
- fluctuations in our operating results;
- our incorporation of artificial intelligence features into our products;
- our transparency;
- our publicly available company Handbook;
- customers staying on our free self-managed or SaaS product offering;
- our ability to accurately predict the long-term rate of customer subscription renewals or adoption, or the impact of these renewals and adoption;
- our hiring model;
- the effects of ongoing armed conflict in different regions of the world on our business; and
- general economic conditions (including changes in interest rates, inflation, uncertainty of the federal budget, increased volatility in the capital markets, and instability in the global banking sector) and slow or negative growth of our markets.
Further information on these and additional risks, uncertainties, and other factors that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this release are included under the caption “Risk Factors” and elsewhere in the filings and reports we make with the
Operating Metrics
Annual Recurring Revenue (“ARR”): We define annual recurring revenue as the annual run-rate revenue of subscription agreements, including our self-managed and SaaS offerings but excluding professional services, from all customers as measured on the last day of a given month. We calculate ARR by taking the monthly recurring revenue (“MRR”) and multiplying it by 12. MRR for each month is calculated by aggregating, for all customers during that month, monthly revenue from committed contractual amounts of subscriptions, including our self-managed license, self-managed subscription, and SaaS subscription offerings but excluding professional services.
Dollar-Based Net Retention Rate: We calculate Dollar-Based Net Retention Rate as of a period end by starting with our customers as of the 12 months prior to such period end (“Prior Period ARR”). We then calculate the ARR from these customers as of the current period end (“Current Period ARR”). The calculation of Current Period ARR includes any upsells, price adjustments, user growth within a customer, contraction, and attrition. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the Dollar-Based Net Retention Rate.
|
Condensed Consolidated Balance Sheets (in thousands, except per share data) (unaudited) |
|||||||
|
|
|
|
|
||||
|
ASSETS |
|
|
|
||||
|
CURRENT ASSETS: |
|
|
|
||||
|
Cash and cash equivalents |
$ |
227,649 |
|
|
$ |
287,996 |
|
|
Short-term investments |
|
764,728 |
|
|
|
748,289 |
|
|
Accounts receivable, net of allowance for doubtful accounts of |
|
264,565 |
|
|
|
166,731 |
|
|
Deferred contract acquisition costs, current |
|
38,964 |
|
|
|
32,300 |
|
|
Prepaid expenses and other current assets |
|
40,411 |
|
|
|
49,143 |
|
|
Total current assets |
|
1,336,317 |
|
|
|
1,284,459 |
|
|
Property and equipment, net |
|
4,013 |
|
|
|
2,954 |
|
|
Operating lease right-of-use assets |
|
381 |
|
|
|
405 |
|
|
|
|
16,139 |
|
|
|
8,145 |
|
|
Intangible assets, net |
|
17,834 |
|
|
|
1,733 |
|
|
Deferred contract acquisition costs, non-current |
|
20,142 |
|
|
|
19,317 |
|
|
Other non-current assets |
|
4,437 |
|
|
|
4,390 |
|
|
TOTAL ASSETS |
$ |
1,399,263 |
|
|
$ |
1,321,403 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
|
CURRENT LIABILITIES: |
|
|
|
||||
|
Accounts payable |
$ |
7,519 |
|
|
$ |
1,738 |
|
|
Accrued expenses and other current liabilities |
|
50,788 |
|
|
|
301,262 |
|
|
Accrued compensation and benefits |
|
40,233 |
|
|
|
35,809 |
|
|
Deferred revenue, current |
|
442,599 |
|
|
|
338,348 |
|
|
Total current liabilities |
|
541,139 |
|
|
|
677,157 |
|
|
Deferred revenue, non-current |
|
26,369 |
|
|
|
23,794 |
|
|
Other non-current liabilities |
|
6,557 |
|
|
|
14,060 |
|
|
TOTAL LIABILITIES |
|
574,065 |
|
|
|
715,011 |
|
|
STOCKHOLDERS’ EQUITY: |
|
|
|
||||
|
Preferred stock, |
|
— |
|
|
|
— |
|
|
Class A Common stock, |
|
— |
|
|
|
— |
|
|
Class |
|
— |
|
|
|
— |
|
|
Additional paid-in capital |
|
1,952,031 |
|
|
|
1,718,661 |
|
|
Accumulated deficit |
|
(1,163,722 |
) |
|
|
(1,161,288 |
) |
|
Accumulated other comprehensive income (loss) |
|
(8,508 |
) |
|
|
2,398 |
|
|
Total |
|
779,801 |
|
|
|
559,771 |
|
|
Noncontrolling interests |
|
45,397 |
|
|
|
46,621 |
|
|
TOTAL STOCKHOLDERS’ EQUITY |
|
825,198 |
|
|
|
606,392 |
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
1,399,263 |
|
|
$ |
1,321,403 |
|
|
__________ |
|||||||
|
(1) As of |
|||||||
|
Condensed Consolidated Statements of Operations (in thousands, except per share data) (unaudited) |
|||||||||||||||
|
|
Three Months Ended |
|
Fiscal Year Ended |
||||||||||||
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
Revenue: |
|
|
|
|
|
|
|
||||||||
|
Subscription—self-managed and SaaS |
$ |
185,562 |
|
|
$ |
142,026 |
|
|
$ |
675,179 |
|
|
$ |
506,306 |
|
|
License—self-managed and other |
|
25,869 |
|
|
|
21,753 |
|
|
|
84,070 |
|
|
|
73,600 |
|
|
Total revenue |
|
211,431 |
|
|
|
163,779 |
|
|
|
759,249 |
|
|
|
579,906 |
|
|
Cost of revenue: |
|
|
|
|
|
|
|
||||||||
|
Subscription—self-managed and SaaS |
|
17,277 |
|
|
|
12,165 |
|
|
|
64,916 |
|
|
|
45,486 |
|
|
License—self-managed and other |
|
5,592 |
|
|
|
3,824 |
|
|
|
20,224 |
|
|
|
14,222 |
|
|
Total cost of revenue |
|
22,869 |
|
|
|
15,989 |
|
|
|
85,140 |
|
|
|
59,708 |
|
|
Gross profit |
|
188,562 |
|
|
|
147,790 |
|
|
|
674,109 |
|
|
|
520,198 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
|
Sales and marketing |
|
98,753 |
|
|
|
90,762 |
|
|
|
384,295 |
|
|
|
356,393 |
|
|
Research and development |
|
62,885 |
|
|
|
52,388 |
|
|
|
239,652 |
|
|
|
200,840 |
|
|
General and administrative |
|
42,370 |
|
|
|
39,523 |
|
|
|
188,985 |
|
|
|
150,405 |
|
|
Total operating expenses |
|
204,008 |
|
|
|
182,673 |
|
|
|
812,932 |
|
|
|
707,638 |
|
|
Loss from operations |
|
(15,446 |
) |
|
|
(34,883 |
) |
|
|
(138,823 |
) |
|
|
(187,440 |
) |
|
Interest income |
|
10,292 |
|
|
|
11,813 |
|
|
|
47,735 |
|
|
|
39,114 |
|
|
Other income (expense), net |
|
4,017 |
|
|
|
(11,451 |
) |
|
|
9,187 |
|
|
|
(12,241 |
) |
|
Loss before income taxes and loss from equity method investment |
|
(1,137 |
) |
|
|
(34,521 |
) |
|
|
(81,901 |
) |
|
|
(160,567 |
) |
|
Loss from equity method investment, net of tax |
|
— |
|
|
|
(1,416 |
) |
|
|
— |
|
|
|
(3,824 |
) |
|
Provision for (benefit from) income taxes |
|
(11,344 |
) |
|
|
2,035 |
|
|
|
(76,674 |
) |
|
|
265,145 |
|
|
Net income (loss) |
$ |
10,207 |
|
|
$ |
(37,972 |
) |
|
$ |
(5,227 |
) |
|
$ |
(429,536 |
) |
|
Net loss attributable to noncontrolling interest |
|
(577 |
) |
|
|
(1,104 |
) |
|
|
(2,793 |
) |
|
|
(3,859 |
) |
|
Net income (loss) attributable to |
$ |
10,784 |
|
|
$ |
(36,868 |
) |
|
$ |
(2,434 |
) |
|
$ |
(425,677 |
) |
|
Net income (loss) per share attributable to GitLab Class A and Class B common stockholders: |
|
|
|
|
|
|
|
||||||||
|
Basic |
$ |
0.07 |
|
|
$ |
(0.24 |
) |
|
$ |
(0.02 |
) |
|
$ |
(2.76 |
) |
|
Diluted |
$ |
0.06 |
|
|
$ |
(0.24 |
) |
|
$ |
(0.02 |
) |
|
$ |
(2.76 |
) |
|
Weighted-average shares used to compute net income (loss) per share attributable to GitLab Class A and Class B common stockholders: |
|
|
|
|
|
|
|
||||||||
|
Basic |
|
163,055 |
|
|
|
156,601 |
|
|
|
160,580 |
|
|
|
154,283 |
|
|
Diluted |
|
170,094 |
|
|
|
156,601 |
|
|
|
160,580 |
|
|
|
154,283 |
|
|
Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) |
|||||||||||||||
|
|
Three Months Ended |
|
Fiscal Year Ended |
||||||||||||
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
||||||||
|
Net income (loss), including amounts attributable to noncontrolling interest |
$ |
10,207 |
|
|
$ |
(37,972 |
) |
|
$ |
(5,227 |
) |
|
$ |
(429,536 |
) |
|
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
||||||||
|
Stock-based compensation expense |
|
46,636 |
|
|
|
43,017 |
|
|
|
185,899 |
|
|
|
163,049 |
|
|
Change in fair value of acquisition related contingent consideration |
|
— |
|
|
|
— |
|
|
|
3,750 |
|
|
|
— |
|
|
Charitable donation of common stock |
|
2,956 |
|
|
|
2,675 |
|
|
|
11,827 |
|
|
|
10,700 |
|
|
Amortization of intangible assets |
|
2,195 |
|
|
|
521 |
|
|
|
8,126 |
|
|
|
2,167 |
|
|
Depreciation expense |
|
499 |
|
|
|
1,039 |
|
|
|
2,860 |
|
|
|
4,368 |
|
|
Amortization of deferred contract acquisition costs |
|
14,064 |
|
|
|
12,397 |
|
|
|
49,714 |
|
|
|
43,463 |
|
|
Loss from equity method investment |
|
— |
|
|
|
776 |
|
|
|
— |
|
|
|
3,824 |
|
|
Impairment of equity method investment |
|
— |
|
|
|
8,858 |
|
|
|
— |
|
|
|
8,858 |
|
|
Net amortization of premiums or discounts on short-term investments |
|
(3,813 |
) |
|
|
(5,988 |
) |
|
|
(16,746 |
) |
|
|
(20,349 |
) |
|
Unrealized foreign exchange loss (gain), net |
|
(4,083 |
) |
|
|
4,194 |
|
|
|
(9,526 |
) |
|
|
4,833 |
|
|
Other non-cash expense, net |
|
162 |
|
|
|
1,013 |
|
|
|
930 |
|
|
|
1,330 |
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
||||||||
|
Accounts receivable |
|
(67,991 |
) |
|
|
(31,050 |
) |
|
|
(99,649 |
) |
|
|
(36,341 |
) |
|
Prepaid expenses and other current assets |
|
5,927 |
|
|
|
(15,722 |
) |
|
|
8,424 |
|
|
|
(23,688 |
) |
|
Deferred contract acquisition costs |
|
(22,421 |
) |
|
|
(21,340 |
) |
|
|
(58,127 |
) |
|
|
(53,100 |
) |
|
Other non-current assets |
|
(1,034 |
) |
|
|
865 |
|
|
|
(183 |
) |
|
|
(309 |
) |
|
Accounts payable |
|
5,472 |
|
|
|
(3,219 |
) |
|
|
5,505 |
|
|
|
(3,443 |
) |
|
Accrued expenses and other current liabilities |
|
(16,647 |
) |
|
|
13,090 |
|
|
|
(257,261 |
) |
|
|
259,445 |
|
|
Accrued compensation and benefits |
|
13,558 |
|
|
|
12,331 |
|
|
|
4,743 |
|
|
|
15,173 |
|
|
Deferred revenue |
|
74,240 |
|
|
|
50,189 |
|
|
|
108,743 |
|
|
|
79,347 |
|
|
Other non-current liabilities |
|
3,295 |
|
|
|
(10,821 |
) |
|
|
(7,773 |
) |
|
|
5,249 |
|
|
Net cash provided by (used in) operating activities |
|
63,222 |
|
|
|
24,853 |
|
|
|
(63,971 |
) |
|
|
35,040 |
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
||||||||
|
Purchases of short-term investments |
|
(204,304 |
) |
|
|
(242,021 |
) |
|
|
(707,698 |
) |
|
|
(815,697 |
) |
|
Proceeds from maturities of short-term investments |
|
183,520 |
|
|
|
207,028 |
|
|
|
708,382 |
|
|
|
734,007 |
|
|
Purchases of property and equipment |
|
(1,157 |
) |
|
|
(329 |
) |
|
|
(3,765 |
) |
|
|
(1,598 |
) |
|
Payments for business combination, net of cash acquired |
|
— |
|
|
|
— |
|
|
|
(20,210 |
) |
|
|
— |
|
|
Payments for asset acquisition |
|
— |
|
|
|
— |
|
|
|
(7,660 |
) |
|
|
— |
|
|
Escrow payment related to business combination, after acquisition date |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,500 |
) |
|
Other investing activities |
|
— |
|
|
|
(450 |
) |
|
|
457 |
|
|
|
(450 |
) |
|
Net cash used in investing activities |
|
(21,941 |
) |
|
|
(35,772 |
) |
|
|
(30,494 |
) |
|
|
(86,238 |
) |
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
||||||||
|
Proceeds from the issuance of common stock upon exercise of stock options, including early exercises, net of repurchases |
|
6,069 |
|
|
|
9,810 |
|
|
|
23,964 |
|
|
|
32,302 |
|
|
Issuance of common stock under employee stock purchase plan |
|
5,624 |
|
|
|
5,182 |
|
|
|
13,556 |
|
|
|
12,933 |
|
|
Settlement of acquisition related contingent cash consideration |
|
— |
|
|
|
— |
|
|
|
(4,900 |
) |
|
|
— |
|
|
Net cash provided by financing activities |
|
11,693 |
|
|
|
14,992 |
|
|
|
32,620 |
|
|
|
45,235 |
|
|
Impact of foreign exchange on cash and cash equivalents |
|
(1,957 |
) |
|
|
(1,386 |
) |
|
|
1,498 |
|
|
|
(3,943 |
) |
|
Net increase (decrease) in cash and cash equivalents |
|
51,017 |
|
|
|
2,687 |
|
|
|
(60,347 |
) |
|
|
(9,906 |
) |
|
Cash and cash equivalents at beginning of period |
|
176,632 |
|
|
|
285,309 |
|
|
|
287,996 |
|
|
|
297,902 |
|
|
Cash and cash equivalents at end of period |
$ |
227,649 |
|
|
$ |
287,996 |
|
|
$ |
227,649 |
|
|
$ |
287,996 |
|
|
Reconciliation of GAAP to Non-GAAP (in thousands, except per share data) (unaudited) |
|||||||||||||||
|
|
Three Months Ended |
|
Fiscal Year Ended |
||||||||||||
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
Gross profit on GAAP basis |
$ |
188,562 |
|
|
$ |
147,790 |
|
|
$ |
674,109 |
|
|
$ |
520,198 |
|
|
Gross margin on GAAP basis |
|
89 |
% |
|
|
90 |
% |
|
|
89 |
% |
|
|
90 |
% |
|
Stock-based compensation expense |
|
1,998 |
|
|
|
1,640 |
|
|
|
7,922 |
|
|
|
6,400 |
|
|
Amortization of acquired intangibles |
|
2,195 |
|
|
|
521 |
|
|
|
8,126 |
|
|
|
2,067 |
|
|
Restructuring charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
463 |
|
|
Gross profit on non-GAAP basis |
$ |
192,755 |
|
|
$ |
149,951 |
|
|
$ |
690,157 |
|
|
$ |
529,128 |
|
|
Gross margin on non-GAAP basis |
|
91 |
% |
|
|
92 |
% |
|
|
91 |
% |
|
|
91 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
Sales and marketing on GAAP basis |
$ |
98,753 |
|
|
$ |
90,762 |
|
|
$ |
384,295 |
|
|
$ |
356,393 |
|
|
Stock-based compensation expense |
|
(18,664 |
) |
|
|
(17,184 |
) |
|
|
(72,954 |
) |
|
|
(68,766 |
) |
|
Restructuring charges |
|
— |
|
|
|
(188 |
) |
|
|
(1,126 |
) |
|
|
(3,811 |
) |
|
Sales and marketing on non-GAAP basis |
$ |
80,089 |
|
|
$ |
73,390 |
|
|
$ |
310,215 |
|
|
$ |
283,816 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Research and development on GAAP basis |
$ |
62,885 |
|
|
$ |
52,388 |
|
|
$ |
239,652 |
|
|
$ |
200,840 |
|
|
Stock-based compensation expense |
|
(15,478 |
) |
|
|
(13,887 |
) |
|
|
(58,312 |
) |
|
|
(50,804 |
) |
|
Restructuring charges |
|
— |
|
|
|
— |
|
|
|
(393 |
) |
|
|
(2,119 |
) |
|
Research and development on non-GAAP basis |
$ |
47,407 |
|
|
$ |
38,501 |
|
|
$ |
180,947 |
|
|
$ |
147,917 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
General and administrative on GAAP basis |
$ |
42,370 |
|
|
$ |
39,523 |
|
|
$ |
188,985 |
|
|
$ |
150,405 |
|
|
Stock-based compensation expense |
|
(10,496 |
) |
|
|
(10,306 |
) |
|
|
(46,711 |
) |
|
|
(37,079 |
) |
|
Amortization of acquired intangibles |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(100 |
) |
|
Restructuring charges |
|
— |
|
|
|
— |
|
|
|
(377 |
) |
|
|
(1,634 |
) |
|
Charitable donation of common stock |
|
(2,957 |
) |
|
|
(2,675 |
) |
|
|
(11,828 |
) |
|
|
(10,700 |
) |
|
Changes in the fair value of acquisition related contingent consideration |
|
— |
|
|
|
— |
|
|
|
(3,750 |
) |
|
|
— |
|
|
Acquisition related expenses |
|
(391 |
) |
|
|
(1,314 |
) |
|
|
(3,240 |
) |
|
|
(1,314 |
) |
|
Other non-recurring charges (1) |
|
(646 |
) |
|
|
(404 |
) |
|
|
(1,730 |
) |
|
|
(817 |
) |
|
General and administrative on non-GAAP basis |
$ |
27,880 |
|
|
$ |
24,824 |
|
|
$ |
121,349 |
|
|
$ |
98,761 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Loss from operations on GAAP basis |
$ |
(15,446 |
) |
|
$ |
(34,883 |
) |
|
$ |
(138,823 |
) |
|
$ |
(187,440 |
) |
|
Stock-based compensation expense |
|
46,636 |
|
|
|
43,017 |
|
|
|
185,899 |
|
|
|
163,049 |
|
|
Amortization of acquired intangibles |
|
2,195 |
|
|
|
521 |
|
|
|
8,126 |
|
|
|
2,167 |
|
|
Restructuring charges |
|
— |
|
|
|
188 |
|
|
|
1,896 |
|
|
|
8,027 |
|
|
Charitable donation of common stock |
|
2,957 |
|
|
|
2,675 |
|
|
|
11,828 |
|
|
|
10,700 |
|
|
Changes in the fair value of acquisition related contingent consideration |
|
— |
|
|
|
— |
|
|
|
3,750 |
|
|
|
— |
|
|
Acquisition related expenses |
|
391 |
|
|
|
1,314 |
|
|
|
3,240 |
|
|
|
1,314 |
|
|
Other non-recurring charges (1) |
|
646 |
|
|
|
404 |
|
|
|
1,730 |
|
|
|
817 |
|
|
Income (loss) from operations on non-GAAP basis |
$ |
37,379 |
|
|
$ |
13,236 |
|
|
$ |
77,646 |
|
|
$ |
(1,366 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Other income (expense), net on GAAP basis |
$ |
4,017 |
|
|
$ |
(11,451 |
) |
|
$ |
9,187 |
|
|
$ |
(12,241 |
) |
|
Impairment of equity method investment |
|
— |
|
|
|
8,858 |
|
|
|
— |
|
|
|
8,858 |
|
|
Foreign exchange gains (losses), net |
|
(3,860 |
) |
|
|
2,611 |
|
|
|
(9,416 |
) |
|
|
2,871 |
|
|
Other non-recurring charges (1) |
$ |
173 |
|
|
$ |
173 |
|
|
$ |
690 |
|
|
$ |
701 |
|
|
Other income, net on non-GAAP basis |
$ |
330 |
|
|
$ |
191 |
|
|
$ |
461 |
|
|
$ |
189 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net income (loss) attributable to |
$ |
10,784 |
|
|
$ |
(36,868 |
) |
|
$ |
(2,434 |
) |
|
$ |
(425,677 |
) |
|
Stock-based compensation expense |
|
46,636 |
|
|
|
43,017 |
|
|
|
185,899 |
|
|
|
163,049 |
|
|
Amortization of acquired intangibles |
|
2,195 |
|
|
|
521 |
|
|
|
8,126 |
|
|
|
2,167 |
|
|
Restructuring charges |
|
— |
|
|
|
188 |
|
|
|
1,896 |
|
|
|
8,027 |
|
|
Charitable donation of common stock |
|
2,957 |
|
|
|
2,675 |
|
|
|
11,828 |
|
|
|
10,700 |
|
|
Changes in the fair value of acquisition related contingent consideration |
|
— |
|
|
|
— |
|
|
|
3,750 |
|
|
|
— |
|
|
Acquisition related expenses |
|
391 |
|
|
|
1,314 |
|
|
|
3,240 |
|
|
|
1,314 |
|
|
Impairment of equity method investment |
|
— |
|
|
|
8,858 |
|
|
|
— |
|
|
|
8,858 |
|
|
Loss from equity method investment, net of tax |
|
— |
|
|
|
1,416 |
|
|
|
— |
|
|
|
3,824 |
|
|
Foreign exchange gains (losses), net |
|
(3,860 |
) |
|
|
2,611 |
|
|
|
(9,416 |
) |
|
|
2,871 |
|
|
Income tax adjustment (1) |
|
(3,222 |
) |
|
|
735 |
|
|
|
(80,468 |
) |
|
|
255,947 |
|
|
Other non-recurring charges (1) |
|
819 |
|
|
|
577 |
|
|
|
2,420 |
|
|
|
1,518 |
|
|
Net income attributable to |
$ |
56,700 |
|
|
$ |
25,044 |
|
|
$ |
124,841 |
|
|
$ |
32,598 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
GAAP net income (loss) per share, basic |
$ |
0.07 |
|
|
$ |
(0.24 |
) |
|
$ |
(0.02 |
) |
|
$ |
(2.76 |
) |
|
GAAP net income (loss) per share, diluted |
$ |
0.06 |
|
|
$ |
(0.24 |
) |
|
$ |
(0.02 |
) |
|
$ |
(2.76 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Non-GAAP net income per share, basic |
$ |
0.35 |
|
|
$ |
0.16 |
|
|
$ |
0.78 |
|
|
$ |
0.21 |
|
|
Non-GAAP net income per share, diluted |
$ |
0.33 |
|
|
$ |
0.15 |
|
|
$ |
0.74 |
|
|
$ |
0.20 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Shares used in per share calculation - basic on GAAP basis |
|
163,055 |
|
|
|
156,601 |
|
|
|
160,580 |
|
|
|
154,283 |
|
|
Effect of dilutive securities |
|
7,039 |
|
|
|
8,820 |
|
|
|
7,909 |
|
|
|
8,182 |
|
|
Shares used in per share calculation - diluted on non-GAAP basis |
|
170,094 |
|
|
|
165,421 |
|
|
|
168,489 |
|
|
|
162,465 |
|
|
(1) Other non-recurring charges and income tax adjustment consist primarily of one-time charges associated with the formation of Jihu and BAPA negotiations. |
|||||||||||||||
|
Reconciliation of GAAP Cash Flow from Operating Activities to Adjusted Free Cash Flow (in thousands) (unaudited) |
|||||||||||||||
|
|
Three Months Ended |
|
Fiscal Year Ended |
||||||||||||
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
Computation of adjusted free cash flow (1) |
|
|
|
|
|
|
|
||||||||
|
GAAP net cash provided by (used in) operating activities |
$ |
63,222 |
|
|
$ |
24,853 |
|
|
$ |
(63,971 |
) |
|
$ |
35,040 |
|
|
Less: Purchases of property and equipment |
|
(1,157 |
) |
|
|
(329 |
) |
|
|
(3,765 |
) |
|
|
(1,598 |
) |
|
Add: Income tax payments related to BAPA |
|
— |
|
|
|
— |
|
|
|
187,735 |
|
|
|
— |
|
|
Non-GAAP adjusted free cash flow |
$ |
62,065 |
|
|
$ |
24,524 |
|
|
$ |
119,999 |
|
|
$ |
33,442 |
|
|
(1) No non-recurring payments related to the formation of JiHu were recorded during the periods presented. |
|||||||||||||||
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