Daily Tech News, Interviews, Reviews and Updates

BigCommerce Announces Fourth Quarter and Fiscal Year 2022 Financial Results

Fourth Quarter Total Revenue of $72.4 Million, an Increase of 12% Versus Prior Year; Total ARR of $311.7 Million, an Increase of 16% Versus Prior Year. Enterprise ARR of $224 Million, an Increase of 30% Versus Prior Year.

AUSTIN, Texas, Feb. 23, 2023 (GLOBE NEWSWIRE) — BigCommerce Holdings, Inc. (“BigCommerce”) (Nasdaq: BIGC), a leading Open SaaS ecommerce platform for fast-growing and established B2C and B2B brands, today announced financial results for its fourth quarter and fiscal year ended December 31, 2022.

“In a challenging year for global ecommerce, BigCommerce grew faster than the broader ecommerce industry, and our Q4 results showed strong progress in both profitability and operating cash flow. Our full-year revenue grew to $279.1 million, up 27% year-over-year,” said Brent Bellm, CEO at BigCommerce. “This strong performance in a tough economy delivered our best-ever gains in market share and global presence. BigCommerce’s 2023 plan achieves profitability in Q4 and focuses our execution on ecommerce leadership in the enterprise segment.”

Fourth Quarter Financial Highlights:

  • Total revenue was $72.4 million, up 12% compared to the fourth quarter of 2021.
  • Total annual revenue run-rate (ARR) as of December 31, 2022 was $311.7 million, up 16% compared to December 31, 2021.
  • Subscription revenue was $53.3 million, up 14% compared to the fourth quarter of 2021.
  • ARR from accounts with at least one enterprise plan (“Enterprise Accounts”) was $224 million as of December 31, 2022, up 30% from December 31, 2021.
  • ARR from Enterprise Accounts as a percent of total ARR was 72% as of December 31, 2022, compared to 64% as of December 31, 2021.
  • GAAP gross margin was 74%, compared to 74% in the fourth quarter of 2021. Non-GAAP gross margin was 76%, compared to 76% in the fourth quarter of 2021.

Other Key Business Metrics

  • Number of enterprise accounts was 5,786, up 15% compared to the fourth quarter of 2021.
  • Average revenue per account (ARPA) of enterprise accounts was $38,708, up 13% compared to the fourth quarter of 2021.
  • Revenue in the Americas grew by 12% compared to the fourth quarter of 2021.
  • Revenue in EMEA grew by 22% and revenue in APAC declined by 6% compared to the fourth quarter of 2021.

Operating Income/(Loss)

  • GAAP operating loss was ($34.7) million, compared to ($33.8) million in the fourth quarter of 2021.
  • Non-GAAP operating loss was ($9.4) million, compared to ($11.6) million in the fourth quarter of 2021.

Net Income/(Loss) and Earnings Per Share

  • GAAP net loss was ($33.0) million, compared to ($34.2) million in the fourth quarter of 2021.
  • Non-GAAP net loss was ($7.7) million or (11%) of total revenue, compared to ($12.1) million or (19%) of total revenue in the first quarter of 2021.
  • GAAP net loss per share was ($0.45) based on 73.8 million weighted-average shares of common stock outstanding, compared to ($0.48) based on 72.0 million weighted-average shares of common stock outstanding in the fourth quarter of 2021.
  • Non-GAAP net loss per share was ($0.10) based on 73.8 million weighted-average shares of common stock outstanding, compared to ($0.17) based on 72.0 million weighted-average shares of common stock outstanding in the fourth quarter of 2021.

Adjusted EBITDA

  • Adjusted EBITDA was ($8.6) million, compared to ($10.9) million in the fourth quarter of 2021. Note: In comparison to prior year, results also include the removal of Other Income and Expense from Adjusted EBITDA, which was $0.6 million for the three months ended December 31, 2022.

Cash

  • Cash, cash equivalents, restricted cash, and marketable securities totaled $305.0 million as of December 31, 2022.
  • For the three months ended December 31, 2022, net cash used in operating activities was ($2.7 million), compared to ($8.8) million for the same period in 2021. We reported free cash flow of ($3.7) million or a (5%) free cash flow margin.
  • For the twelve months ended December 31, 2022, net cash used in operating activities was ($89.4) million, compared to ($40.3) million for the same period in 2021.
  • For the twelve months ended December 31, 2022, free cash flow was ($94.6) million, compared to ($43.6) million for the same period in 2021.
  • Included in our 2022 operating cash flow and free cash flow was the first annual payment to Feedonomics of $32.5M related to the contingent compensation arrangements entered into in connection with the 2021 acquisition.

Fiscal Year 2022 Financial Highlights:

  • Total revenue was $279.1 million, up 27% compared to fiscal year 2021.
  • Subscription revenue was $205.8 million, up 33% compared to fiscal year 2021.
  • GAAP gross margin was 75%, compared to 78% in fiscal year 2021. Non-GAAP gross margin was 76%, compared to 79% in fiscal year 2021.

Operating Income/(Loss)

  • GAAP operating loss was ($140.6) million, compared to ($75.9) million in fiscal year 2021.
  • Non-GAAP operating loss was ($47.0) million, compared to ($22.8) million in fiscal year 2021.

Net Income/(Loss) and Earnings Per Share

  • GAAP net loss was ($139.9) million, compared to ($76.7) million in fiscal year 2021.
  • Non-GAAP net loss was ($46.3) million or (16.6%) of total revenue, compared to ($23.6) million or (10.7%) of total revenue in the fiscal year 2021.
  • GAAP net loss per share was ($1.91) based on 73.2 million weighted-average shares of common stock outstanding, compared to ($1.08) based on 70.9 million weighted-average shares of common stock outstanding in fiscal year 2021.
  • Non-GAAP net loss per share was ($0.63) based on 73.2 million weighted-average shares of common stock outstanding, compared to ($0.33) based on 70.9 million weighted-average shares of common stock outstanding in fiscal year 2021.

Adjusted EBITDA

  • Adjusted EBITDA was ($43.6) million, compared to ($20.0) million in fiscal year 2021. Note: In comparison to prior year, results also include the removal of Other Income and Expense from Adjusted EBITDA, which was ($0.2) million for fiscal year 2022.

Business Highlights:

  • Corporate Highlights:

In December, we announced our plan to reduce our cost structure and accelerate our path to profitability from mid to late 2024 to the fourth quarter of 2023. We also made two recent leadership additions. In October, we announced Rosie Rivel joined the company as our first chief information officer. In January, we announced ecommerce industry veteran Mark Adams will join the company as senior vice president and general manager for EMEA. In January, we announced the launch of our Omnichannel Certified Partner (OCP) Program, an enterprise-focused initiative designed to give partners new ways to generate revenue by helping merchants on leading ecommerce platforms to achieve omnichannel success. Over 100 partners have joined the program either the Omnichannel Certified Agency (OCA) Program or the Omnichannel Certified Technology (OCT) Partner Program. Each brings opportunities for partners to empower merchants to further innovate through specialized services such as optimized product feed management from Feedonomics, a BigCommerce company, and unprecedented access to partner initiatives.

  • Product Highlights:

BigCommerce continues to release features and product enhancements that resonate with our target market of enterprise customers. In December, we launched StagingPro, a comprehensive staging and deployment suite that gives enterprise merchants and agency developers a collaborative, near-production level environment to easily test and deploy code to a BigCommerce store.

  • Merchant Highlights:

FishUSA, a leading retailer for fishing tackle and supplies needs, launched a new store that takes advantage of integrations with its Netsuite ERP, Square’s point of sale system, and customized workflows with Celigo to deliver a unified shopping experience both online and in-store. Norwall Power Systems launched on BigCommerce capitalizing on our integration with MiniBC, enabling Norwall to have a flexible payment processing working with integrations from both Acctivate and QuickBooks. The Fold London, an iconic fashion brand, launched its store on BigCommerce, taking advantage of our new StagingPro capabilities and leveraging our partner ecosystem and Open SaaS platform for several integrations and data migration. The Chair King, a family-owned business since 1950 with showrooms across Texas, is now selling on BigCommerce with a custom-built connector integrating seamlessly with their ERP. Skee-Ball, the brand behind the popular arcade game, launched on BigCommerce to sell its line of games designed specifically for the home, leveraging B2B Edition to sell both B2B and B2C.

  • Partner Highlights:

In December, BigCommerce announced a new integration with Sage, a leader in accounting, financial, HR and payroll technology, to provide B2C and B2B merchants with an end-to-end commerce solution, integrating their online storefronts to their back-office. The integration of BigCommerce with Sage 100 ERP software empowers businesses to modernize their ecommerce presence and launch fully integrated B2C and B2B storefronts to reach new customers, increase operational efficiency and provide real-time updates and visibility for orders, customer information, invoices and more. BigCommerce is now one of the first enterprise ecommerce platforms to launch in Sage Business Cloud Marketplace for Sage 100 customers looking to sell online. In November, we launched Snapchat for BigCommerce, enabling US merchants of all sizes to directly integrate their store as a one-stop shop to sync product catalogs and create immersive Snapchat ad campaigns to broaden customer reach, open new revenue streams and ultimately scale their business to the next level. In January BigCommerce became the inaugural partner for the launch of Buy with Prime, which allows BigCommerce merchants to easily sync their existing catalog across Amazon and BigCommerce and deploy the Buy with Prime button on their sites. We also started a new partnership with Microsoft Ads and Listings, allowing BigCommerce merchants to create and manage ad campaigns across Microsoft’s extensive properties. Earlier this month, we announced a new strategic partnership with WPP to offer omnichannel solutions to help WPP clients drive growth and maximize sales across hundreds of advertising channels and marketplaces. This innovative partnership will give WPP priority access to new product tools on both BigCommerce and data feed management platform Feedonomics, in addition to providing APIs and data sets that will enable WPP agencies to develop unique insights for clients across product, trend and purchasing data.

Q1 and 2023 Financial Outlook:

For the first quarter of 2023, the Company currently expects:

  • Total revenue between $69.7 million to $72.7 million, implying a year-over-year growth rate of 6% to 10%.
  • Non-GAAP operating loss is expected to be between $8.2 million to $12.2 million.

For the full year 2023, the Company currently expects:

  • Total revenue between $301 million and $313 million, translating into a year-over-year growth rate of 8% and 12%.
  • Non-GAAP operating loss between $15.7 million and $22.7 million.

The Company’s first quarter and 2023 financial outlook is based on a number of assumptions that are subject to change and many of which are outside the Company’s control. If actual results vary from these assumptions, the Company’s expectations may change. There can be no assurance that the Company will achieve these results.

The Company does not provide guidance for operating loss, the most directly comparable GAAP measure to Non-GAAP operating loss, and similarly cannot provide a reconciliation between its forecasted Non-GAAP operating loss and Non-GAAP net loss per share and these comparable GAAP measures without unreasonable effort due to the unavailability of reliable estimates for certain items. These items are not within the Company’s control and may vary greatly between periods and could significantly impact future financial results.

Conference Call Information

BigCommerce will host a conference call and webcast at 4:00 p.m. CT (5:00 p.m. ET) on Thursday, February 23, 2023, to discuss its financial results and business highlights. The conference call can be accessed by dialing (833) 634-1254 from the United States and Canada or (412) 317-6012 internationally and requesting to join the “BigCommerce conference call.” The live webcast of the conference call and other materials related to BigCommerce’s financial performance can be accessed from BigCommerce’s investor relations website at http://investors.bigcommerce.com.

Following the completion of the call through 11:59 p.m. ET on Thursday, March 2, 2023, a telephone replay will be available by dialing (877) 344-7529 from the United States, (855) 669-9658 from Canada or (412) 317-0088 internationally with conference ID 6945940. A webcast replay will also be available at http://investors.bigcommerce.com for 12 months.

About BigCommerce

BigCommerce (Nasdaq: BIGC) is a leading open software-as-a-service (SaaS) ecommerce platform that empowers merchants of all sizes to build, innovate and grow their businesses online. BigCommerce provides merchants sophisticated enterprise-grade functionality, customization and performance with simplicity and ease-of-use. Tens of thousands of B2C and B2B companies across 150 countries and numerous industries use BigCommerce to create beautiful, engaging online stores, including Ben & Jerry’s, Molton Brown, S.C. Johnson, Skullcandy, SoloStove, Ted Baker and Vodafone. Headquartered in Austin, BigCommerce has offices in London, Kyiv, San Francisco, and Sydney. For more information, please visit www.bigcommerce.com or follow us on Twitter, LinkedIn, Instagram and Facebook.

Forward-Looking Statements

This press release contains “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, as amended. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “outlook,” “may,” “might,” “plan,” “project,” “will,” “would,” “should,” “could,” “can,” “predict,” “potential,” “strategy,” “target,” “explore,” “continue,” or the negative of these terms, and similar expressions intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. These statements may relate to our market size and growth strategy, our estimated and projected costs, margins, revenue, expenditures and customer and financial growth rates, our Q1 and 2023 financial outlook, our plans and objectives for future operations, growth, initiatives or strategies. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance or achievement to differ materially and adversely from those anticipated or implied in the forward-looking statements. These assumptions, uncertainties and risks include that, among others, our business would be harmed by any decline in new customers, renewals or upgrades, our limited operating history makes it difficult to evaluate our prospects and future results of operations, we operate in competitive markets, we may not be able to sustain our revenue growth rate in the future, our business would be harmed by any significant interruptions, delays or outages in services from our platform or certain social media platforms, and a cybersecurity-related attack, significant data breach or disruption of the information technology systems or networks could negatively affect our business. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption “Risk Factors” and elsewhere in our filings with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2022, and the future quarterly and current reports that we file with the SEC. Forward-looking statements speak only as of the date the statements are made and are based on information available to BigCommerce at the time those statements are made and/or management’s good faith belief as of that time with respect to future events. BigCommerce assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.

Use of Non-GAAP Financial Measures

We have provided in this press release certain financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Our management uses these Non-GAAP financial measures internally in analyzing our financial results and believes that use of these Non-GAAP financial measures is useful to investors as an additional tool to evaluate ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar Non-GAAP financial measures. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable financial measures prepared in accordance with GAAP and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. A reconciliation of our historical Non-GAAP financial measures to the most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review these reconciliations.

Annual Revenue Run-Rate

We calculate annual revenue run-rate (“ARR”) at the end of each month as the sum of: (1) contractual monthly recurring revenue at the end of the period, which includes platform subscription fees, invoiced growth adjustments, feed management subscription fees, recurring professional services revenue, and other recurring revenue, multiplied by twelve to prospectively annualize recurring revenue, and (2) the sum of the trailing twelve-month non-recurring and variable revenue, which includes one-time partner integrations, one-time fees, payments revenue share, and any other revenue that is non-recurring and variable.

Accounts with Greater than $2,000 ACV

We track the total number of accounts with annual contract value (“ACV”) greater than $2,000 (the “ACV threshold”) as of the end of a monthly billing period. To define this $2,000 ACV cohort, we include only subscription plan revenue and exclude partner and services revenue and recurring services revenue. We consider all stores and brands added and subtracted as of the end of the monthly billing period. This metric includes accounts that may have either one single store or brand above the ACV threshold or multiple stores or brands that together exceed the ACV threshold.

Enterprise Account Metrics

To measure the effectiveness of our ability to execute against our growth strategy, particularly within the mid-market and enterprise business segments, we calculate ARR attributable to Enterprise Accounts. We define Enterprise Accounts as accounts with at least one unique Enterprise plan subscription or an enterprise level feed management subscription (collectively “Enterprise Accounts”). These accounts may have more than one Enterprise plan or a combination of Enterprise plans and Essentials plans.

Average Revenue Per Account

We calculate average revenue per account (ARPA) for accounts above the ACV threshold at the end of a period by including customer-billed revenue and an allocation of partner and services revenue, where applicable. We allocate partner revenue, where applicable, primarily based on each customer’s share of GMV processed through that partner’s solution. For partner revenue that is not directly linked to customer usage of a partner’s solution, we allocate such revenue based on each customer’s share of total platform GMV. Each account’s partner revenue allocation is calculated by taking the account’s trailing twelve-month partner revenue, then dividing by twelve to create a monthly average to apply to the applicable period in order to normalize ARPA for seasonality.

Adjusted EBITDA

We define Adjusted EBITDA as our net loss, excluding the impact of stock-based compensation expense and related payroll tax expense, third party acquisition-related costs, and other acquisition related expenses, including contingent compensation arrangements entered into in connection with acquisitions, depreciation, amortization of acquisition-related intangible assets, interest income, interest expense, changes in fair value of financial instruments, restructuring charges, other non-operating income and expense and our provision for income taxes. The most directly comparable GAAP measure is net loss.

Non-GAAP Operating Loss

We define Non-GAAP Operating Loss as our GAAP Loss from operations, excluding the impact of stock-based compensation expense and related payroll tax expense, third party acquisition-related costs, and other acquisition related expenses, including contingent compensation arrangements entered into in connection with acquisitions, amortization of acquisition-related intangible assets, and restructuring charges. The most directly comparable GAAP measure is our loss from operations.

Non-GAAP Net Loss

We define Non-GAAP Net Loss as our GAAP net loss, excluding the impact of stock-based compensation expense and related payroll tax expense, third party acquisition-related costs, and other acquisition related expenses, including contingent compensation arrangements entered into in connection with acquisitions, amortization of acquisition-related intangible assets restructuring charges and changes in fair value of financial instruments. The most directly comparable GAAP measure is our net loss.

Non-GAAP Net Loss per Share

We define Non-GAAP Net Loss per Share as our Non-GAAP Net Loss, defined above, divided by our basic and diluted GAAP weighted average shares outstanding. The most directly comparable GAAP measure is our net loss per share.

Free Cash Flow

We define Free Cash flow as our GAAP cash flow from operating activities plus our GAAP purchases of property and equipment (Capital Expenditures). The most directly comparable GAAP measure is our cash flow from operating activities.

Media Relations Contact Investor Relations Contact
Brad Hem Daniel Lentz
[email protected] [email protected]


Consolidated Balance Sheet

(in thousands, except per share amounts)

    December 31,  
    2022     2021  
Assets                
Current assets                
Cash and cash equivalents   $ 91,573     $ 297,561  
Restricted cash     1,457       1,143  
Marketable securities     211,941       102,315  
Accounts receivable, net     51,899       39,806  
Prepaid expenses and other assets     11,206       9,710  
Deferred commissions     6,171       4,013  
Total current assets     374,247       454,548  
Property and equipment, net     9,083       7,429  
Right-of-use-asset     5,887       9,515  
Prepaid expenses, net of current portion     470       831  
Deferred commissions, net of current portion     7,037       5,673  
Intangible assets, net     27,583       35,032  
Goodwill     49,749       42,432  
Total assets   $ 474,056     $ 555,460  
Liabilities and stockholders’ equity                
Current liabilities                
Accounts payable   $ 7,013     $ 8,211  
Accrued liabilities     2,937       2,941  
Deferred revenue     17,783       12,752  
Current portion of operating lease liabilities     2,609       2,653  
Other current liabilities     48,444       36,254  
Total current liabilities     78,786       62,811  
Deferred revenue, net of current portion     1,759       1,359  
Long-term debt     337,497       335,537  
Operating lease liabilities, net of current portion     10,008       10,217  
Other long-term liabilities, net of current portion     334       7,248  
Total liabilities     428,384       417,172  
Commitments and contingencies (Note 7)                
Stockholders’ equity                
Preferred stock $0.0001 par value; 10,000 shares authorized at
December 31, 2022 and December 31, 2021; 0 shares issued
and outstanding at December 31, 2022 and 2021.
           
Common stock, $0.0001 par value; 500,000 shares Series 1 authorized at December 31, 2022 and December 31, 2021; 73,945, and 72,311 shares Series 1 issued and outstanding at December 31, 2022 and December 31, 2021, respectively.     7       7  
Additional paid-in capital     576,851       528,540  
Accumulated other comprehensive loss     (1,199 )     (191 )
Accumulated deficit     (529,987 )     (390,068 )
Total stockholders’ equity     45,672       138,288  
Total liabilities and stockholders’ equity   $ 474,056     $ 555,460  


Consolidated Statement of Operations

(in thousands, except per share amounts)

    Year ended December 31,  
    2022     2021     2020  
Revenue   $ 279,075     $ 219,855     $ 152,368  
Cost of revenue     69,980       48,479       34,126  
Gross profit     209,095       171,376       118,242  
Operating expenses:                        
Sales and marketing     134,794       99,350       72,470  
Research and development     88,253       64,547       48,332  
General and administrative     75,989       56,839       36,137  
Acquisition related expenses     35,216       23,299        
Restructuring charges     7,332              
Amortization of intangible assets     8,078       3,284        
Total operating expenses     349,662       247,319       156,939  
Loss from operations     (140,567 )     (75,943 )     (38,697 )
Interest income     4,198       130       31  
Interest expense     (2,828 )     (828 )     (3,103 )
Change in fair value of financial instruments                 4,413  
Other expense     (227 )     (70 )     (179 )
Loss before provision for income taxes     (139,424 )     (76,711 )     (37,535 )
Provision for income taxes     495       (34 )     25  
Net loss     (139,919 )     (76,677 )     (37,560 )
Dividends and accretion of issuance costs on Series F preferred stock   $     $     $ (962 )
Net loss attributable to common stockholders   $ (139,919 )   $ (76,677 )   $ (38,522 )
Basic and diluted net loss per share attributable to common stockholders   $ (1.91 )   $ (1.08 )   $ (0.99 )
Weighted average shares used to compute basic and diluted net loss
per share attributable to common stockholders
    73,226       70,933       39,092  


Consolidated Statement of Cash Flows

(in thousands)

    Year ended December 31,  
    2022     2021     2020  
Cash flows from operating activities                        
Net loss   $ (139,919 )   $ (76,677 )   $ (37,560 )
Adjustments to reconcile net loss to net cash used in operating activities:                        
Depreciation and amortization     11,421       6,151       3,084  
Amortization of discount on debt     1,960       574       774  
Stock-based compensation     42,332       25,424       11,058  
Allowance for credit losses     8,244       3,474       1,594  
Change in fair value of financial instrument                 (4,413 )
Restructuring charges     7,332              
Changes in operating assets and liabilities:                        
Accounts receivable     (20,337 )     (17,279 )     (9,305 )
Prepaid expenses     (1,134 )     (2,413 )     (2,704 )
Deferred commissions     (3,463 )     (3,525 )     (2,396 )
Accounts payable     (1,198 )     2,137       1,907  
Accrued and other current liabilities     100       20,437       9,610  
Deferred revenue     5,305       1,397       1,822  
Net cash used in operating activities     (89,357 )     (40,300 )     (26,529 )
Cash flows from investing activities:                        
Cash paid for acquisition     (696 )     (81,067 )      
Purchase of marketable securities     (214,184 )     (107,006 )      
Purchase of property and equipment     (5,196 )     (3,304 )     (1,964 )
Maturity of marketable securities     103,550       4,500        
Net cash used in investing activities     (116,526 )     (186,877 )     (1,964 )
Cash flows from financing activities:                        
Payment of debt issuance costs           (10,037 )      
Purchase of capped calls           (35,570 )        
Proceeds from issuance of common stock upon initial public offering, net of underwriting discounts and commissions and other offering costs                 171,129  
Proceeds from issuance of common stock upon secondary offering, net of underwriting discounts and commissions and other offerings costs                 65,112  
Payment of Series F dividends                 (12,814 )
Proceeds from exercise of stock options and warrants     209       5,881       3,279  
Proceeds from issuance of convertible senior notes           345,000       41,861  
Repayment of debt                 (28,617 )
Net cash provided by financing activities     209       305,274       239,950  
Net change in cash and cash equivalents and restricted cash     (205,674 )     78,097       211,457  
Cash and cash equivalents and restricted cash, beginning of period     298,704       220,607       9,150  
Cash and cash equivalents and restricted cash, end of period   $ 93,030     $ 298,704     $ 220,607  
Supplemental cash flow information:                        
Cash paid for interest   $ 903     $     $ 2,285  
Cash paid for taxes   $ 32     $     $  
Noncash investing and financing activities:                        
Fair value of shares issued as consideration for acquisition     5,388       2,003        
Conversion of convertible preferred stock into common stock upon initial public offering                 211,902  
Conversion of convertible debt into common stock upon initial public offering                   50,173  
Changes in capital additions, accrued but not paid   $ 107     $     $  
Reconciliation of cash, cash equivalents and restricted cash within the condensed consolidated balance sheet to the amounts shown in the statements of cash flows above:                        
Cash and cash equivalents     91,573       297,561       219,447  
Restricted cash     1,457       1,143       1,160  
Total cash, cash equivalents and restricted cash   $ 93,030     $ 298,704     $ 220,607  


Disaggregated Revenue:

    Year ended December 31,  
(in thousands)   2022     2021     2020  
Subscription solutions   $ 205,800     $ 154,933     $ 103,706  
Partner and services     73,275       64,922       48,662  
Total revenue   $ 279,075     $ 219,855     $ 152,368  


Revenue by Geography:

    Year ended December 31,  
(in thousands)   2022     2021     2020  
Revenue:                        
Americas—U.S.   $ 216,639     $ 169,737     $ 120,934  
Americas—other     12,124       8,559       5,371  
EMEA     27,743       20,783       12,396  
APAC     22,569       20,776       13,667  
Total revenue   $ 279,075     $ 219,855     $ 152,368  


Reconciliation of GAAP to Non-GAAP Results

(in thousands, except per share amounts)

Reconciliation of operating loss to Non-GAAP operating loss:

    Year ended December 31,  
    2022     2021     2020  
    (dollars in thousands)  
Operating loss   $ (140,567 )   $ (75,943 )   $ (38,697 )
Less: stock-based compensation expense     42,332       25,424       11,058  
Less: payroll tax associated with stock-based compensation expense     654       1,111       222  
Less: third-party acquisition related costs     35,216       23,299        
Less: restructuring charges     7,332              
Less: amortization of intangible assets     8,078       3,284        
Non-GAAP operating loss     (46,955 )     (22,825 )     (27,417 )
Non-GAAP operating margin     (16.8 )%     (10.4 )%     (18.0 )%


Reconciliation of net loss & net loss per share to Non-GAAP net loss & Non-GAAP net loss per share:

    Year ended December 31,  
    2022     2021     2020  
    (dollars in thousands)  
Net Loss   $ (139,919 )   $ (76,677 )   $ (37,560 )
Less: stock-based compensation expense     42,332       25,424       11,058  
Less: payroll tax associated with stock-based compensation expense     654       1,111       222  
Less: third-party acquisition related costs     35,216       23,299        
Less: restructuring charges     7,332              
Less: amortization of intangible assets     8,078       3,284        
Less: change in fair value of financial instruments                 (4,413 )
Non-GAAP net loss     (46,307 )     (23,559 )     (30,693 )
Non-GAAP net loss per share     (0.63 )     (0.33 )     (0.79 )
Weighted average shares used to compute basic and diluted net loss per share attributable to common stockholders     73,226       70,933       39,092  
Non-GAAP net loss margin     (16.6 )%     (10.7 )%     (20.1 )%


Reconciliation of net loss to adjusted EBITDA:

    Year ended December 31,  
    2022     2021     2020  
    (dollars in thousands)  
Net loss   $ (139,919 )   $ (76,677 )   $ (37,560 )
Stock-based compensation expense     42,332       25,424       11,058  
Payroll tax associated with stock based-compensation expense     654       1,111       222  
Depreciation     3,344       2,867       3,084  
Third-party acquisition related costs     35,216       23,299        
Restructuring charges     7,332              
Amortization of intangible assets     8,078       3,284        
Interest income     (4,198 )     (130 )     (31 )
Interest expense     2,828       828       3,103  
Change in fair value of financial instrument                 (4,413 )
Other income/expense     227       70       179  
Provision for income taxes     495       (34 )     25  
Adjusted EBITDA   $ (43,611 )   $ (19,958 )   $ (24,333 )
Adjusted EBITDA margin     (15.6 )%     (9.1 )%     (16.0 )%


Reconciliation of cost of revenue to Non-GAAP cost of revenue:

    Year ended December 31,  
    2022     2021     2020  
    (dollars in thousands)  
Cost of revenue   $ 69,980     $ 48,479     $ 34,126  
Less: share-based compensation expense     4,181       2,055       769  
Less: payroll tax associated with share-based compensation expense     45       67       34  
Non-GAAP cost of revenue     65,754       46,357       33,323  
As of % of revenue     23.6 %     21.1 %     21.9 %


Reconciliation of sales and marketing expense to Non-GAAP sales and marketing expense:

    Year ended December 31,  
    2022     2021     2020  
    (dollars in thousands)  
Sales and marketing   $ 134,794     $ 99,350     $ 72,470  
Less: share-based compensation expense     11,905       7,761       3,310  
Less: payroll tax associated with share-based compensation expense     132       483       155  
Non-GAAP sales and marketing     122,757       91,106       69,005  
As of % of revenue     44.0 %     41.4 %     45.3 %


Reconciliation of research and development expense to Non-GAAP research and development expense:

    Year ended December 31,  
    2022     2021     2020  
    (dollars in thousands)  
Research and development   $ 88,253     $ 64,547     $ 48,332  
Less: share-based compensation expense     12,292       5,901       2,500  
Less: payroll tax associated with share-based compensation expense     96       269        
Non-GAAP research and development     75,865       58,377       45,832  
As of % of revenue     27.2 %     26.6 %     30.1 %


Reconciliation of general and administrative expense to Non-GAAP general and administrative expense:

    Year ended December 31,  
    2022     2021     2020  
    (dollars in thousands)  
General and administrative   $ 75,989     $ 56,839     $ 36,137  
Less: share-based compensation expense     13,954       9,707       4,479  
Less: payroll tax associated with share-based compensation expense     381       292       33  
Non-GAAP general and administrative     61,654       46,840       31,625  
As of % of revenue     22.1 %     21.3 %     20.8 %


Reconciliation of net cash used in operating activities to free cash flow:

    Year ended December 31,  
    2022     2021     2020  
    (dollars in thousands)  
Net cash used in operating activities   $ (89,357 )   $ (40,300 )   $ (26,529 )
Capital expenditures   $ (5,196 )   $ (3,304 )   $ (1,964 )
Free cash flow   $ (94,553 )   $ (43,604 )   $ (28,493 )


YoY comparisons:

Income Statement:

    Three months ended
December 31,
    Twelve months ended
December 31,
 
    2022     2021     2022     2021  
                                 
Revenue   $ 72,431     $ 64,897     $ 279,075     $ 219,855  
Cost of revenue     18,492       16,641       69,980       48,479  
Gross profit     53,939       48,256       209,095       171,376  
Operating expenses:                                
Sales and marketing     33,871       30,284       134,794       99,350  
Research and development     22,669       19,755       88,253       64,547  
General and administrative     18,963       17,750       75,989       56,839  
Acquisition related expenses     3,775       12,400       35,216       23,299  
Restructuring charges     7,332             7,332        
Amortization of intangible assets     2,016       1,882       8,078       3,284  
Total operating expenses     88,626       82,071       349,662       247,319  
Loss from operations     (34,687 )     (33,815 )     (140,567 )     (75,943 )
Interest income     2,068       65       4,198       130  
Interest expense     (708 )     (703 )     (2,828 )     (828 )
Change in fair value of financial instruments                        
Other expense     601       (88 )     (227 )     (70 )
Loss before provision for income taxes     (32,726 )     (34,541 )     (139,424 )     (76,711 )
Provision for income taxes     254       (297 )     495       (34 )
Net loss   $ (32,980 )   $ (34,244 )   $ (139,919 )   $ (76,677 )
Dividends and accretion of issuance costs on Series F
preferred stock
  $     $     $     $  
Net loss attributable to common stockholders   $ (32,980 )   $ (34,244 )   $ (139,919 )   $ (76,677 )
Basic and diluted net loss per share attributable to common
stockholders
  $ (0.45 )   $ (0.48 )   $ (1.91 )   $ (1.08 )
Weighted average shares used to compute basic and diluted net
loss per share attributable to common stockholders
    73,819       71,952       73,226       70,933  


Cash Flow:

    Three months ended
December 31,
    Twelve months ended
December 31,
 
    2022     2021     2022     2021  
Cash flows from operating activities                                
Net loss   $ (32,980 )   $ (34,244 )   $ (139,919 )   $ (76,677 )
Adjustments to reconcile net loss to net cash used in operating activities:                                
Depreciation and amortization     2,791       2,630       11,421       6,151  
Amortization of discount on debt     492       487       1,960       574  
Stock-based compensation     12,146       7,742       42,332       25,424  
Allowance for credit losses     1,237       1,350       8,244       3,474  
Change in fair value of financial instrument                        
Restructuring charges     7,332             7,332        
Changes in operating assets and liabilities:                            
Accounts receivable     (5,072 )     (7,381 )     (20,337 )     (17,279 )
Prepaid expenses     2,817       4,094       (1,134 )     (2,413 )
Deferred commissions     (949 )     (1,441 )     (3,463 )     (3,525 )
Accounts payable     (204 )     2,326       (1,198 )     2,137  
Accrued and other current liabilities     7,486       15,900       100       20,437  
Deferred revenue     2,211       (280 )     5,305       1,397  
Net cash used in operating activities     (2,693 )     (8,817 )     (89,357 )     (40,300 )
Cash flows from investing activities:                                
Cash paid for acquisition           (115 )     (696 )     (81,067 )
Purchase of marketable securities     (44,297 )     (63,539 )     (214,184 )     (107,006 )
Purchase of property and equipment     (990 )     (1,017 )     (5,196 )     (3,304 )
Maturity of marketable securities     38,900       4,500       103,550       4,500  
Net cash used in investing activities     (6,387 )     (60,171 )     (116,526 )     (186,877 )
Cash flows from financing activities:                                
Payment of debt issuance costs                       (10,037 )
Purchase of capped calls                       (35,570 )
Payment of Series F dividends                        
Proceeds from exercise of stock options and warrants     145       1,642       209       5,881  
Proceeds from issuance of convertible senior notes                       345,000  
Repayment of debt                        
Net cash provided by financing activities     145       1,642       209       305,274  
Net change in cash and cash equivalents and restricted cash     (8,935 )     (67,346 )     (205,674 )     78,097  
Cash and cash equivalents and restricted cash, beginning of period     101,965       366,050       298,704       220,607  
Cash and cash equivalents and restricted cash, end of period   $ 93,030     $ 298,704     $ 93,030     $ 298,704  
Supplemental cash flow information:                                
Cash paid for interest   $     $     $ 903     $  
Cash paid for taxes   $     $     $ 32     $  
Noncash investing and financing activities:                                
Fair value of shares issued as consideration for acquisition     768       2,003       5,388       2,003  
Changes in capital additions, accrued but not paid   $     $     $ 107     $  
Reconciliation of cash, cash equivalents and restricted cash within the condensed consolidated balance sheet to the amounts shown in the statements of cash flows above:                                
Cash and cash equivalents     91,573       297,561       91,573       297,561  
Restricted cash     1,457       1,143       1,457       1,143  
Total cash, cash equivalents and restricted cash   $ 93,030     $ 298,704     $ 93,030     $ 298,704  


Disaggregated Revenue:

    Three months ended
December 31,
    Twelve months ended
December 31,
 
(in thousands)   2022     2021     2022     2021  
Subscription solutions   $ 53,297     $ 46,852     $ 205,800     $ 154,933  
Partner and services     19,134       18,045       73,275       64,922  
Total revenue   $ 72,431     $ 64,897     $ 279,075     $ 219,855  


Reconciliation of operating loss to Non-GAAP operating loss:

    Three months ended
December 31,
    Twelve months ended
December 31,
 
    2022     2021     2022     2021  
                                 
Operating loss   $ (34,687 )   $ (33,815 )   $ (140,567 )   $ (75,943 )
Less: stock-based compensation expense     12,146       7,742       42,332       25,424  
Less: payroll tax associated with stock-based compensation expense     13       144       654       1,111  
Less: third-party acquisition related costs     3,775       12,400       35,216       23,299  
Less: restructuring charges     7,332             7,332        
Less: amortization of intangible assets     2,016       1,882       8,078       3,284  
Non-GAAP operating loss     (9,405 )     (11,647 )     (46,955 )     (22,825 )
Non-GAAP operating margin     (13.0 )%     (17.9 )%     (16.8 )%     (10.4 )%


Reconciliation of net loss & Net Loss per share to Non-GAAP net loss & Non-GAAP net loss per share:

    Three months ended
December 31,
    Twelve months ended
December 31,
 
    2022     2021     2022     2021  
                                 
Net loss   $ (32,980 )   $ (34,244 )   $ (139,919 )   $ (76,677 )
Less: stock-based compensation expense     12,146       7,742       42,332       25,424  
Less: payroll tax associated with stock-based compensation expense     13       144       654       1,111  
Less: third-party acquisition related costs     3,775       12,400       35,216       23,299  
‘Less: restructuring charges     7,332             7,332        
Less: amortization of intangible assets     2,016       1,882       8,078       3,284  
Less: change in fair value of financial instruments                        
Non-GAAP net loss     (7,698 )     (12,076 )     (46,307 )     (23,559 )
Non-GAAP net loss per share     (0.10 )     (0.17 )     (0.63 )     (0.33 )
Weighted average shares used to compute basic and diluted net loss per share attributable to common stockholders     73,819       71,952       73,226       70,933  
Non-GAAP net loss margin     (10.6 )%     (18.6 )%     (16.6 )%     (10.7 )%


Reconciliation of net loss to adjusted EBITDA:

    Three months ended
December 31,
    Twelve months ended
December 31,
 
    2022     2021     2022     2021  
                                 
Net loss   $ (32,980 )   $ (34,244 )   $ (139,919 )   $ (76,677 )
Stock-based compensation expense     12,146       7,742       42,332       25,424  
Payroll tax associated with stock-based compensation expense     13       144       654       1,111  
Depreciation     776       716       3,344       2,867  
Third-party acquisition related costs     3,775       12,400       35,216       23,299  
Restructuring charges     7,332             7,332        
Amortization of intangible assets     2,016       1,882       8,078       3,284  
Interest income     (2,068 )     (65 )     (4,198 )     (130 )
Interest expense     708       703       2,828       828  
Change in fair value of financial instrument                        
Other income/expense     (601 )     88       227       70  
Provision for income taxes     254       (297 )     495       (34 )
Adjusted EBITDA   $ (8,629 )   $ (10,931 )   $ (43,611 )   $ (19,958 )
Adjusted EBITDA Margin     (11.9 )%     (16.8 )%     (15.6 )%     (9.1 )%


COR:

    Three months ended
December 31,
    Twelve months ended
December 31,
 
    2022     2021     2022     2021  
                                 
Cost of revenue   $ 18,492     $ 16,641     $ 69,980     $ 48,479  
Less: share-based compensation expense     1,278       849       4,181       2,055  
Less: payroll tax associated with share-based compensation expense     2       3       45       67  
Non-GAAP cost of revenue     17,212       15,789       65,754       46,357  
As a % of revenue     23.8 %     24.3 %     23.6 %     21.1 %


Sales and marketing:

    Three months ended
December 31,
    Twelve months ended
December 31,
 
    2022     2021     2022     2021  
                                 
Sales and marketing   $ 33,871     $ 30,284     $ 134,794     $ 99,350  
Less: share-based compensation expense     3,328       2,410       11,905       7,761  
Less: payroll tax associated with share-based compensation expense     4       67       132       483  
Non-GAAP sales and marketing     30,539       27,807       122,757       91,106  
As a % of revenue     42.2 %     42.8 %     44.0 %     41.4 %


Research and development:

    Three months ended
December 31,
    Twelve months ended
December 31,
 
    2022     2021     2022     2021  
                                 
Research and development   $ 22,669     $ 19,755     $ 88,253     $ 64,547  
Less: share-based compensation expense     3,635       1,721       12,292       5,901  
Less: payroll tax associated with share-based compensation expense     4       31       96       269  
Non-GAAP research and development     19,030       18,003       75,865       58,377  
As a % of revenue     26.3 %     27.7 %     27.2 %     26.6 %


General and administrative:

    Three months ended
December 31,
    Twelve months ended
December 31,
 
    2022     2021     2022     2021  
                                 
General & administrative   $ 18,963     $ 17,750     $ 75,989     $ 56,839  
Less: share-based compensation expense     3,905       2,762       13,954       9,707  
Less: payroll tax associated with share-based compensation expense     3       43       381       292  
Non-GAAP general & administrative     15,055       14,945       61,654       46,840  
As a % of revenue     20.8 %     23.0 %     22.1 %     21.3 %


Free cash flow (FCF):

    Three months ended
December 31,
    Twelve months ended
December 31,
 
(in thousands)   2022     2021     2022     2021  
                                 
Net cash used in operating activities   $ (2,693 )   $ (8,816 )   $ (89,357 )   $ (40,300 )
Capital expenditures   $ (990 )   $ (1,017 )   $ (5,196 )   $ (3,304 )
Free cash flow   $ (3,683 )   $ (9,833 )   $ (94,553 )   $ (43,604 )

 

Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. TheTechOutlook.com takes no editorial responsibility for the same.



Readers like you help support The Tech Outlook. When you make a purchase using links on our site, we may earn an affiliate commission. We cannot guarantee the Product information shown is 100% accurate and we advise you to check the product listing on the original manufacturer website. Thetechoutlook is not responsible for price changes carried out by retailers. The discounted price or deal mentioned in this item was available at the time of writing and may be subject to time restrictions and/or limited unit availability. Amazon and the Amazon logo are trademarks of Amazon.com, Inc. or its affiliates Read More
You might also like

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More