Box Reports Strong Fiscal First Quarter 2023 Financial Results
Box, Inc. reported a strong fiscal Q1 2023, achieving 238.4 million in revenue, up 18% year-over-year. The GAAP operating margin reached breakeven, while non-GAAP operating margin was 21%. The company raised its revenue guidance to 992-996 million for FY23, reflecting a 14% increase, and improved EPS guidance. Box also announced significant product enhancements, including Box Canvas for real-time collaboration. Despite FX headwinds affecting growth, Box's net retention rate rose to 111%.
- Revenue growth of 18% year-over-year, reaching $238.4 million.
- Raised FY23 revenue guidance to $992-996 million, up 14%.
- Non-GAAP operating margin increased to 21%.
- Net retention rate improved to 111%, up 800 basis points.
- Successful launch of Box Canvas and other product enhancements.
- Significant foreign exchange headwinds expected to impact revenue growth by approximately 3 percentage points.
Revenue Growth of
GAAP Operating Margin of Breakeven, Non-GAAP Operating Margin of
Raises the Midpoint of Full Year Revenue Guidance and Raises Operating Margin and EPS Guidance
“Our strong first quarter results demonstrate the continued execution of our growth strategy as we execute against a
“We had an excellent start to the year, with a fifth consecutive quarter of accelerating revenue growth,” said
Fiscal First Quarter Financial Highlights
-
Revenue for the first quarter of fiscal year 2023 was
$238.4 million 18% increase from revenue for the first quarter of fiscal year 2022 of$202.4 million -
Remaining performance obligations as of
April 30, 2022 , were$1.0 billion 16% increase from remaining performance obligations as ofApril 30, 2021 of$864.8 million -
Billings for the first quarter of fiscal year 2023 were
$172.2 million 8% increase from billings for the first quarter of fiscal year 2022 of$159.4 million -
GAAP gross profit for the first quarter of fiscal year 2023 was
$176.2 million 73.9% of revenue. This compares to a GAAP gross profit of$141.5 million 69.9% of revenue, in the first quarter of fiscal year 2022. -
Non-GAAP gross profit for the first quarter of fiscal year 2023 was
$182.0 million 76.3% of revenue. This compares to a non-GAAP gross profit of$147.7 million 73.0% of revenue, in the first quarter of fiscal year 2022. -
GAAP operating income in the first quarter of fiscal year 2023 was
$0.6 million 0.3% of revenue. This compares to a GAAP operating loss of$10.3 million 5.1% of revenue, in the first quarter of fiscal year 2022. -
Non-GAAP operating income in the first quarter of fiscal year 2023 was
$49.2 million 20.6% of revenue. This compares to a non-GAAP operating income of$34.4 million 17.0% of revenue, in the first quarter of fiscal year 2022. -
GAAP net loss per share attributable to common stockholders, basic and diluted, in the first quarter of fiscal year 2023 was
$0.06 $0.09 3 cents from FX. -
Non-GAAP net income per share attributable to common stockholders, diluted, in the first quarter of fiscal year 2023 was
$0.23 $0.18 3 cents from FX. -
Net cash provided by operating activities in the first quarter of fiscal year 2023 was
$107.7 million 14% increase from the$94.8 million -
Free cash flow in the first quarter of fiscal year 2023 was
$90.9 million 20% increase from the$75.9 million
For more information on the non-GAAP financial measures and key metrics discussed in this press release, please see the section titled, “About Non-GAAP Financial Measures and Other Key Metrics,” and the reconciliations of non-GAAP financial measures and certain key metrics to their nearest comparable GAAP financial measures at the end of this press release.
Business Highlights Since Last Earnings Release
-
Delivered wins or expansions with leading organizations such as
BBC Studios ,Penguin Random House , Polpharma Biologics,Signant Health , andThe Hospital for Sick Children . - Announced Box Canvas, a new virtual whiteboarding and visual collaboration experience that securely connects hybrid teams so they can brainstorm, ideate, and create, together from anywhere.
- Unveiled updates to Box Sign, including the ability to send a single document to hundreds of recipients at once and access to six new dedicated fields and formatting options for documents. These additions will make document preparation easier and will deliver a smoother and faster experience for signers.
- Announced a deeper integration between Box Relay and Box Sign, including the ability to trigger a new workflow based on a document being completed, canceled, expired or declined in Box Sign.
- Launched new capabilities for Box Shield, including the ability to apply malware deep scan to Microsoft Office files and adding automatic watermarking to classified documents.
- Announced new enhancements to the Box App Center, a destination for users, admins, and developers to discover and access the more than 1,500 applications that integrate with Box.
- Announced a deepened integration with Zoom with the launch of the Box app for Zoom Chat Channels to make it even easier for users to work seamlessly together across the two platforms.
-
Hosted the Box Content
Cloud Summit attracting thousands of attendees from the Fortune 1,000, and showcased enhancements for Box Sign, Box Shield, and Box Relay, as well as introduced Box Canvas. -
Honored to have Box Chair of the Board,
Bethany Mayer , and Board Member,Jack Lazar , recognized by the NACD on their Directorship 100 list, an annual recognition of the most influential people in and around the boardroom. -
Recognized by
Great Place to Work® and Fortune® magazine as one of the 100 Best Companies to Work For. Box earned the #48 spot on the list for 2022.
Outlook
The following guidance includes GAAP and non-GAAP financial measures. Since
Q2 FY23 Guidance
-
Revenue is expected to be in the range of
$244 million $246 million 15% year-over-year at the high-end of the range. -
GAAP operating margin is expected to be approximately
2.5% , and non-GAAP operating margin is expected to be approximately22% . -
GAAP basic and diluted net loss per share attributable to common stockholders are expected to be in the range of
$0.02 $0.01 -
Non-GAAP diluted net income per share attributable to common stockholders is expected to be in the range of
$0.27 $0.28 - Weighted-average basic and diluted shares outstanding are expected to be approximately 146 million and 152 million, respectively.
Full Year FY23 Guidance
-
Revenue is expected to be in the range of
$992 million $996 million 14% year-over-year at the high-end of the range and represents an acceleration from last year’s growth rate of13% . -
GAAP operating margin is expected to be approximately
3% , and non-GAAP operating margin is expected to be approximately22.5% . This represents an increase from Box’s previous guidance provided onMarch 2, 2022 , which was2% and22% , respectively. -
GAAP basic and diluted net loss per share attributable to common stockholders are expected to be in the range of
$0.05 $0.01 March 2, 2022 , which was basic and diluted net loss per share of$0.07 $0.03 -
Non-GAAP diluted net income per share attributable to common stockholders is expected to be in the range of
$1.11 $1.15 March 2, 2022 , which was$1.10 $1.14 - Weighted-average basic and diluted shares outstanding are expected to be approximately 147 million and 154 million, respectively.
All forward-looking non-GAAP financial measures contained in this section titled “Outlook” exclude estimates for stock-based compensation expense, intangible assets amortization, and as applicable, other special items. Box has provided a reconciliation of GAAP to non-GAAP net income (loss) per share guidance at the end of this press release.
Webcast and Conference Call Information
Box’s management team will host a conference call today beginning at
The conference call can be accessed by registering online at https://conferencingportals.com/event/xgkBSAEo at which time registrants will receive dial-in information as well as a passcode and registrant ID. A telephonic replay of the call will be available approximately two hours after the call and will run for one week. The replay can be accessed by dialing:
+ 1-800-770-2030 (toll-free), conference ID: 23531
+ 1-647-362-9199 (toll), conference ID: 23531
Box has used, and intends to continue to use, its Investor Relations website (www.box.com/investors), as well as certain Twitter accounts (@box, @levie and @boxincir), as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Information on or that can be accessed through Box’s Investor Relations website, these Twitter accounts, or that is contained in any website to which a hyperlink is provided herein is not part of this press release, and the inclusion of Box’s Investor Relations website address, these Twitter accounts, and any hyperlinks are only inactive textual references.
This press release, the financial tables, as well as other supplemental information including the reconciliations of non-GAAP financial measures and certain key metrics to their nearest comparable GAAP financial measures, are also available on Box’s Investor Relations website. Box also provides investor information, including news and commentary about Box’s business and financial performance, Box’s filings with the
Forward-Looking Statements
This press release contains forward-looking statements that involve risks, uncertainties, and assumptions, including statements regarding Box’s expectations regarding the size of its market opportunity, sales productivity, its leadership position in the cloud content management market, the demand for its products, the timing of recent and planned product introductions, enhancements and integrations, the short- and long-term success, market adoption and retention, capabilities, and benefits of such product introductions and enhancements, the success of strategic partnerships, the impact of its acquisitions on future Box product offerings, the benefits to its customers from completing acquisitions, the time needed to integrate acquired businesses into Box, the impact of the COVID-19 pandemic or the Russian invasion of
Additional information on potential factors that could affect Box’s financial results is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings Box makes with the
About Non-GAAP Financial Measures and Other Key Metrics
To supplement Box’s consolidated financial statements, which are prepared and presented in accordance with GAAP, Box provides investors with certain non-GAAP financial measures and other key metrics, including non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per share, billings, remaining performance obligations, and free cash flow. The presentation of these non-GAAP financial measures and key metrics is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures and key metrics, please see the reconciliation of these non-GAAP financial measures and certain key metrics to their nearest comparable GAAP financial measures at the end of this press release.
Box uses these non-GAAP financial measures and key metrics for financial and operational decision-making (including for purposes of determining variable compensation of members of management and other employees) and as a means to evaluate period-to-period comparisons. Box’s management believes that these non-GAAP financial measures and key metrics provide meaningful supplemental information regarding Box’s performance by excluding certain expenses that may not be indicative of Box’s recurring core business operating results. Box believes that both management and investors benefit from referring to these non-GAAP financial measures and key metrics in assessing Box’s performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures and key metrics also facilitate management's internal comparisons to Box’s historical performance as well as comparisons to Box’s competitors' operating results. Box believes these non-GAAP financial measures and key metrics are useful to investors both because they (1) allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) are used by Box’s institutional investors and the analyst community to help them analyze the health of Box’s business.
A limitation of non-GAAP financial measures and key metrics is that they do not have uniform definitions. Further, Box’s definitions will likely differ from the definitions used by other companies, including peer companies, and therefore comparability may be limited. Thus, Box’s non-GAAP financial measures and key metrics should be considered in addition to, and not as a substitute for, or in isolation from, measures prepared in accordance with GAAP. Additionally, in the case of stock-based compensation expense, if Box did not pay a portion of compensation in the form of stock-based compensation expense, the cash salary expense included in cost of revenue and operating expenses would be higher, which would affect Box’s cash position. The accompanying tables have more details on the reconciliations of non-GAAP financial measures and certain key metrics to their nearest comparable GAAP financial measures.
Non-GAAP operating income (loss) and non-GAAP operating margin. Box defines non-GAAP operating income (loss) as operating income (loss) excluding expenses related to stock-based compensation (“SBC”), intangible assets amortization, and as applicable, other special items. Non-GAAP operating margin is defined as non-GAAP operating income (loss) divided by revenue. Although SBC is an important aspect of the compensation of Box’s employees and executives, determining the fair value of certain of the stock-based instruments Box utilizes involves a high degree of judgment and estimation and the expense recorded may bear little resemblance to the actual value realized upon the vesting or future exercise of the related stock-based awards. Management believes it is useful to exclude SBC in order to better understand the long-term performance of Box’s core business and to facilitate comparison of Box’s results to those of peer companies. Management also views amortization of acquired intangible assets, such as the amortization of the cost associated with an acquired company’s developed technology and trade names, as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are continually evaluated for impairment, amortization of the cost of purchased intangibles is a static expense that is not typically affected by operations during any particular period. Furthermore, Box excludes the following expenses as they are considered by management to be special items outside of Box’s core operating results: (1) fees related to shareholder activism (2) expenses related to certain litigation, (3) expenses associated with restructuring activities, consisting primarily of severance and other personnel-related costs, and (4) expenses related to acquisitions, including transaction and discrete tax costs. There are no expenses related to litigation excluded from non-GAAP operating income (loss) in any of the periods presented.
Non-GAAP net income (loss) and non-GAAP net income (loss) per share. Box defines non-GAAP net income (loss) as GAAP net income (loss) excluding expenses related to SBC, intangible assets amortization, and as applicable, other special items as described in the preceding paragraph. Box defines non-GAAP net income (loss) per share as non-GAAP net income (loss) divided by the weighted-average outstanding shares.
Billings. Billings reflect, in any particular period, (1) sales to new customers, plus (2) subscription renewals and (3) expansion within existing customers, and represent amounts invoiced for all products and professional services. Box calculates billings for a period by adding changes in deferred revenue and contract assets in that period to revenue. Box believes that billings help investors better understand sales activity for a particular period, which is not necessarily reflected in revenue as a result of the fact that Box recognizes subscription revenue ratably over the subscription term. Box considers billings a significant performance measure. Box monitors billings to manage the business, make planning decisions, evaluate performance and allocate resources. Box believes that billings offers valuable supplemental information regarding the performance of the business and helps investors better understand the sales volumes and performance of the business. Although Box considers billings to be a significant performance measure, Box does not consider it to be a non-GAAP financial measure because it is calculated using exclusively revenue, deferred revenue, and contract assets, all of which are financial measures calculated in accordance with GAAP.
Remaining performance obligations. Remaining performance obligations (“RPO”) represent, at a point in time, contracted revenue that has not yet been recognized. RPO consists of deferred revenue and backlog, offset by contract assets. Backlog is defined as non-cancellable contracts deemed certain to be invoiced and recognized as revenue in future periods. Future invoicing is determined to be certain when we have an executed non-cancellable contract and invoicing is not dependent on a future event such as the delivery of a specific new product or feature, or the achievement of contractual contingencies. While Box believes RPO is a leading indicator of revenue as it represents sales activity not yet recognized in revenue, it is not necessarily indicative of future revenue growth as it is influenced by several factors, including seasonality, contract renewal timing, average contract terms and foreign currency exchange rates. Box monitors RPO to manage the business and evaluate performance. Box considers RPO to be a significant performance measure. Box does not consider RPO to be a non-GAAP financial measure because it is calculated in accordance with GAAP, specifically under ASC Topic 606.
Free cash flow. Box defines free cash flow as cash flows from operating activities less purchases of property and equipment, principal payments of finance lease liabilities, capitalized internal-use software costs, and other items that did not or are not expected to require cash settlement and that management considers to be outside of Box’s core business. Box specifically identifies adjusting items in the reconciliation of GAAP to non-GAAP financial measures. Box considers free cash flow to be a profitability and liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that can possibly be used for investing in Box's business and strengthening its balance sheet, but it is not intended to represent the residual cash flow available for discretionary expenditures. The presentation of non-GAAP free cash flow is also not meant to be considered in isolation or as an alternative to cash flows from operating activities as a measure of liquidity.
About Box
Box (NYSE:BOX) is the leading Content Cloud, a single platform that empowers organizations to manage the entire content lifecycle, work securely from anywhere, and integrate across best-of-breed apps. Founded in 2005, Box simplifies work for leading global organizations, including AstraZeneca, JLL, and Nationwide. Box is headquartered in
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(In Thousands) |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
|
|
||
|
|
2022 |
|
|
2022 |
|
||
ASSETS |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
391,377 |
|
|
$ |
416,274 |
|
Short-term investments |
|
|
127,889 |
|
|
|
170,000 |
|
Accounts receivable, net |
|
|
117,146 |
|
|
|
256,312 |
|
Prepaid expenses and other current assets |
|
|
33,987 |
|
|
|
27,953 |
|
Deferred commissions |
|
|
45,021 |
|
|
|
46,025 |
|
Total current assets |
|
|
715,420 |
|
|
|
916,564 |
|
Property and equipment, net |
|
|
92,043 |
|
|
|
105,755 |
|
Operating lease right-of-use assets, net |
|
|
163,674 |
|
|
|
172,808 |
|
|
|
|
72,855 |
|
|
|
74,466 |
|
Deferred commissions, non-current |
|
|
69,335 |
|
|
|
72,884 |
|
Other long-term assets |
|
|
58,260 |
|
|
|
49,532 |
|
Total assets |
|
$ |
1,171,587 |
|
|
$ |
1,392,009 |
|
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable, accrued expenses and other current liabilities |
|
$ |
46,459 |
|
|
$ |
58,942 |
|
Accrued compensation and benefits |
|
|
23,972 |
|
|
|
54,705 |
|
Finance lease liabilities |
|
|
38,455 |
|
|
|
41,235 |
|
Operating lease liabilities |
|
|
45,741 |
|
|
|
44,608 |
|
Deferred revenue |
|
|
458,084 |
|
|
|
519,485 |
|
Total current liabilities |
|
|
612,711 |
|
|
|
718,975 |
|
Debt, net, non-current |
|
|
367,934 |
|
|
|
367,463 |
|
Finance lease liabilities, non-current |
|
|
13,278 |
|
|
|
20,836 |
|
Operating lease liabilities, non-current |
|
|
156,096 |
|
|
|
168,192 |
|
Deferred revenue, non-current |
|
|
10,266 |
|
|
|
14,757 |
|
Other long-term liabilities |
|
|
6,916 |
|
|
|
8,993 |
|
Total liabilities |
|
|
1,167,201 |
|
|
|
1,299,216 |
|
Series A convertible preferred stock |
|
|
488,351 |
|
|
|
487,880 |
|
Stockholders’ deficit: |
|
|
|
|
|
|
||
Common stock |
|
|
15 |
|
|
|
15 |
|
Additional paid-in capital |
|
|
892,067 |
|
|
|
972,020 |
|
Accumulated other comprehensive loss |
|
|
(8,769 |
) |
|
|
(4,543 |
) |
Accumulated deficit |
|
|
(1,367,278 |
) |
|
|
(1,362,579 |
) |
Total stockholders’ deficit |
|
|
(483,965 |
) |
|
|
(395,087 |
) |
Total liabilities, convertible preferred stock and stockholders’ deficit |
|
$ |
1,171,587 |
|
|
$ |
1,392,009 |
|
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
(In Thousands, Except Per Share Data) |
||||||||
(Unaudited) |
||||||||
|
|
Three Months Ended |
|
|||||
|
|
|
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Revenue |
|
$ |
238,432 |
|
|
$ |
202,441 |
|
Cost of revenue (1) |
|
|
62,209 |
|
|
|
60,947 |
|
Gross profit |
|
|
176,223 |
|
|
|
141,494 |
|
Operating expenses: |
|
|
|
|
|
|
||
Research and development (1) |
|
|
61,733 |
|
|
|
50,859 |
|
Sales and marketing (1) |
|
|
83,067 |
|
|
|
69,811 |
|
General and administrative (1) |
|
|
30,799 |
|
|
|
31,087 |
|
Total operating expenses |
|
|
175,599 |
|
|
|
151,757 |
|
Income (loss) from operations |
|
|
624 |
|
|
|
(10,263 |
) |
Interest and other expense, net |
|
|
(4,157 |
) |
|
|
(3,999 |
) |
Loss before provision for income taxes |
|
|
(3,533 |
) |
|
|
(14,262 |
) |
Provision for income taxes |
|
|
1,166 |
|
|
|
311 |
|
Net loss |
|
$ |
(4,699 |
) |
|
$ |
(14,573 |
) |
Dividend on series A convertible preferred stock |
|
|
(3,695 |
) |
|
|
— |
|
Accretion of series A convertible preferred stock |
|
|
(527 |
) |
|
|
— |
|
Net loss attributable to common stockholders |
|
$ |
(8,921 |
) |
|
$ |
(14,573 |
) |
Net loss per share attributable to common stockholders, basic and diluted |
|
$ |
(0.06 |
) |
|
$ |
(0.09 |
) |
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted |
|
|
144,725 |
|
|
|
161,733 |
|
|
|
|
|
|
|
|
||
(1) Includes stock-based compensation expense as follows: |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
|
Three Months Ended |
|
|||||
|
|
|
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Cost of revenue |
|
$ |
4,355 |
|
|
$ |
5,340 |
|
Research and development |
|
|
17,726 |
|
|
|
15,453 |
|
Sales and marketing |
|
|
15,289 |
|
|
|
11,551 |
|
General and administrative |
|
|
9,740 |
|
|
|
9,446 |
|
Total stock-based compensation |
|
$ |
47,110 |
|
|
$ |
41,790 |
|
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(In Thousands) |
||||||||
(Unaudited) |
||||||||
|
|
Three Months Ended |
|
|||||
|
|
|
|
|||||
|
|
2022 |
|
|
2021 |
|
||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
||
Net loss |
|
$ |
(4,699 |
) |
|
$ |
(14,573 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
18,536 |
|
|
|
19,380 |
|
Stock-based compensation expense |
|
|
47,110 |
|
|
|
41,790 |
|
Amortization of deferred commissions |
|
|
13,145 |
|
|
|
10,517 |
|
Other |
|
|
299 |
|
|
|
443 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable, net |
|
|
136,876 |
|
|
|
116,835 |
|
Prepaid expenses and other assets |
|
|
(15,368 |
) |
|
|
(8,816 |
) |
Deferred commissions |
|
|
(9,059 |
) |
|
|
(7,927 |
) |
Operating lease right-of-use assets, net |
|
|
9,992 |
|
|
|
10,852 |
|
Accounts payable, accrued expenses and other liabilities |
|
|
(18,450 |
) |
|
|
(11,906 |
) |
Operating lease liabilities |
|
|
(11,866 |
) |
|
|
(13,927 |
) |
Deferred revenue |
|
|
(58,786 |
) |
|
|
(47,896 |
) |
Net cash provided by operating activities |
|
|
107,730 |
|
|
|
94,772 |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
||
Purchases of short-term investments |
|
|
(37,883 |
) |
|
|
(50,000 |
) |
Maturities of short-term investments |
|
|
80,000 |
|
|
|
— |
|
Purchases of property and equipment, net of sale proceeds |
|
|
(558 |
) |
|
|
(1,145 |
) |
Capitalized internal-use software costs |
|
|
(2,532 |
) |
|
|
(1,178 |
) |
Acquisitions, net of cash acquired |
|
|
(300 |
) |
|
|
(56,642 |
) |
Other |
|
|
(315 |
) |
|
|
— |
|
Net cash provided by (used in) investing activities |
|
|
38,412 |
|
|
|
(108,965 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
||
Repurchases of common stock |
|
|
(117,240 |
) |
|
|
— |
|
Payments of dividends to preferred stockholders |
|
|
(3,750 |
) |
|
|
— |
|
Proceeds from issuances of common stock under employee equity plans |
|
|
14,464 |
|
|
|
13,866 |
|
Employee payroll taxes paid for net settlement of stock awards |
|
|
(41,839 |
) |
|
|
(15,684 |
) |
Principal payments of finance lease liabilities |
|
|
(11,503 |
) |
|
|
(13,262 |
) |
Other |
|
|
(2,323 |
) |
|
|
(3,768 |
) |
Net cash used in financing activities |
|
|
(162,191 |
) |
|
|
(18,848 |
) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
|
(8,501 |
) |
|
|
(211 |
) |
Net decrease in cash, cash equivalents, and restricted cash |
|
|
(24,550 |
) |
|
|
(33,252 |
) |
Cash, cash equivalents, and restricted cash, beginning of period |
|
|
416,888 |
|
|
|
595,511 |
|
Cash, cash equivalents, and restricted cash, end of period |
|
$ |
392,338 |
|
|
$ |
562,259 |
|
|
||||||||||
RECONCILIATION OF GAAP TO NON-GAAP DATA |
||||||||||
(In Thousands, Except Per Share Data and Percentages) |
||||||||||
(Unaudited) |
||||||||||
|
|
Three Months Ended |
|
|||||||
|
|
|
|
|
||||||
|
|
2022 |
|
|
|
2021 |
|
|
||
GAAP gross profit |
|
$ |
176,223 |
|
|
|
$ |
141,494 |
|
|
Stock-based compensation |
|
|
4,355 |
|
|
|
|
5,340 |
|
|
Acquired intangible assets amortization |
|
|
1,452 |
|
|
|
|
901 |
|
|
Non-GAAP gross profit |
|
$ |
182,030 |
|
|
|
$ |
147,735 |
|
|
|
|
|
|
|
|
|
|
|
||
GAAP gross margin |
|
|
73.9 |
|
% |
|
|
69.9 |
|
% |
Stock-based compensation |
|
|
1.8 |
|
|
|
|
2.6 |
|
|
Acquired intangible assets amortization |
|
|
0.6 |
|
|
|
|
0.5 |
|
|
Non-GAAP gross margin |
|
|
76.3 |
|
% |
|
|
73.0 |
|
% |
|
|
|
|
|
|
|
|
|
||
GAAP operating income (loss) |
|
$ |
624 |
|
|
|
$ |
(10,263 |
) |
|
Stock-based compensation |
|
|
47,110 |
|
|
|
|
41,790 |
|
|
Acquired intangible assets amortization |
|
|
1,452 |
|
|
|
|
901 |
|
|
Acquisition-related expenses |
|
|
53 |
|
|
|
|
920 |
|
|
Fees related to shareholder activism |
|
|
(77 |
) |
|
|
|
1,050 |
|
|
Non-GAAP operating income |
|
$ |
49,162 |
|
|
|
$ |
34,398 |
|
|
|
|
|
|
|
|
|
|
|
||
GAAP operating margin |
|
|
0.3 |
|
% |
|
|
(5.1 |
) |
% |
Stock-based compensation |
|
|
19.7 |
|
|
|
|
20.6 |
|
|
Acquired intangible assets amortization |
|
|
0.6 |
|
|
|
|
0.5 |
|
|
Acquisition-related expenses |
|
|
— |
|
|
|
|
0.5 |
|
|
Fees related to shareholder activism |
|
|
— |
|
|
|
|
0.5 |
|
|
Non-GAAP operating margin |
|
|
20.6 |
|
% |
|
|
17.0 |
|
% |
|
|
|
|
|
|
|
|
|
||
GAAP net loss attributable to common stockholders |
|
$ |
(8,921 |
) |
|
|
$ |
(14,573 |
) |
|
Stock-based compensation |
|
|
47,110 |
|
|
|
|
41,790 |
|
|
Acquired intangible assets amortization |
|
|
1,452 |
|
|
|
|
901 |
|
|
Acquisition-related expenses |
|
|
53 |
|
|
|
|
920 |
|
|
Fees related to shareholder activism |
|
|
(77 |
) |
|
|
|
1,050 |
|
|
Amortization of debt issuance costs |
|
|
471 |
|
|
|
|
469 |
|
|
Undistributed earnings attributable to preferred stockholders |
|
|
(4,552 |
) |
|
|
|
— |
|
|
Non-GAAP net income attributable to common stockholders |
|
$ |
35,536 |
|
|
|
$ |
30,557 |
|
|
|
|
|
|
|
|
|
|
|
||
GAAP net loss per share attributable to common stockholders, basic and diluted |
|
$ |
(0.06 |
) |
|
|
$ |
(0.09 |
) |
|
Stock-based compensation |
|
|
0.33 |
|
|
|
|
0.26 |
|
|
Acquired intangible assets amortization |
|
|
0.01 |
|
|
|
|
— |
|
|
Acquisition-related expenses |
|
|
— |
|
|
|
|
0.01 |
|
|
Fees related to shareholder activism |
|
|
— |
|
|
|
|
0.01 |
|
|
Amortization of debt issuance costs |
|
|
— |
|
|
|
|
— |
|
|
Undistributed earnings attributable to preferred stockholders |
|
|
(0.03 |
) |
|
|
|
— |
|
|
Non-GAAP net income per share attributable to common stockholders, basic |
|
$ |
0.25 |
|
|
|
$ |
0.19 |
|
|
Non-GAAP net income per share attributable to common stockholders, diluted |
|
$ |
0.23 |
|
|
|
$ |
0.18 |
|
|
Weighted-average shares used to compute GAAP net loss per share, basic and diluted |
|
|
144,725 |
|
|
|
|
161,733 |
|
|
Weighted-average shares used to compute non-GAAP net income per share |
|
|
|
|
|
|
|
|
||
Basic |
|
|
144,725 |
|
|
|
|
161,733 |
|
|
Diluted |
|
|
152,845 |
|
|
|
|
169,221 |
|
|
|
|
|
|
|
|
|
|
|
||
GAAP net cash provided by operating activities |
|
$ |
107,730 |
|
|
|
$ |
94,772 |
|
|
Purchases of property and equipment, net of proceeds from sales |
|
|
(558 |
) |
|
|
|
(1,145 |
) |
|
Principal payments of finance lease liabilities |
|
|
(11,503 |
) |
|
|
|
(13,262 |
) |
|
Capitalized internal-use software costs |
|
|
(4,805 |
) |
|
|
|
(4,475 |
) |
|
Non-GAAP free cash flow |
|
$ |
90,864 |
|
|
|
$ |
75,890 |
|
|
GAAP net cash provided by (used in) investing activities |
|
$ |
38,412 |
|
|
|
$ |
(108,965 |
) |
|
GAAP net cash used in financing activities |
|
$ |
(162,191 |
) |
|
|
$ |
(18,848 |
) |
|
|
||||||||
RECONCILIATION OF GAAP REVENUE TO BILLINGS |
||||||||
(In Thousands) |
||||||||
(Unaudited) |
||||||||
|
|
Three Months Ended |
|
|||||
|
|
|
|
|||||
|
|
2022 |
|
|
2021 |
|
||
GAAP revenue |
|
$ |
238,432 |
|
|
$ |
202,441 |
|
Deferred revenue, end of period |
|
|
468,350 |
|
|
|
423,249 |
|
Less: deferred revenue, beginning of period |
|
|
(534,242 |
) |
|
|
(465,613 |
) |
Contract assets, beginning of period |
|
|
1,111 |
|
|
|
25 |
|
Less: contract assets, end of period |
|
|
(1,491 |
) |
|
|
(677 |
) |
Billings |
|
$ |
172,160 |
|
$ |
159,425 |
||
|
||||||||||||||||
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET INCOME PER SHARE GUIDANCE |
||||||||||||||||
(In Thousands, Except Per Share Data) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Fiscal Year Ended |
|
||||||||||
|
|
|
|
|
|
|
||||||||||
GAAP net loss per share attributable to common stockholders range, basic and diluted |
|
$ |
(0.02 |
) |
- |
$ |
(0.01 |
) |
|
$ |
(0.05 |
) |
- |
$ |
(0.01 |
) |
Stock-based compensation |
|
|
0.32 |
|
|
|
0.32 |
|
|
|
1.29 |
|
|
|
1.29 |
|
Acquired intangible asset amortization |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.04 |
|
|
|
0.04 |
|
Amortization of debt issuance costs |
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
0.01 |
|
Undistributed earnings attributable to preferred stockholders |
|
|
(0.04 |
) |
|
|
(0.04 |
) |
|
|
(0.14 |
) |
|
|
(0.14 |
) |
Non-GAAP net income per share attributable to common stockholders range, basic |
|
$ |
0.28 |
|
- |
$ |
0.29 |
|
|
$ |
1.16 |
|
- |
$ |
1.20 |
|
Non-GAAP net income per share attributable to common stockholders range, diluted |
|
$ |
0.27 |
|
- |
$ |
0.28 |
|
|
$ |
1.11 |
|
- |
$ |
1.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average shares used to compute GAAP net loss per share attributable to common stockholders, basic and diluted |
|
|
|
|
|
145,700 |
|
|
|
|
|
|
147,000 |
|
||
Weighted-average shares used to compute non-GAAP net income per share attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
|
|
|
145,700 |
|
|
|
|
|
|
147,000 |
|
||
Diluted |
|
|
|
|
|
152,000 |
|
|
|
|
|
|
153,500 |
|
||
Note: figures may not sum due to rounding. |
||||||||||||||||
|
||||||||
RECONCILIATION OF GAAP TO NON-GAAP OPERATING MARGIN GUIDANCE |
||||||||
(Unaudited) |
||||||||
|
|
Three Months Ended |
|
|
|
Fiscal Year Ended |
|
|
|
|
|
|
|
|
|
|
|
GAAP operating margin |
|
2.5 |
|
% |
|
3.0 |
|
% |
Stock-based compensation |
|
19.0 |
|
|
|
19.0 |
|
|
Acquired intangible assets amortization |
|
0.5 |
|
|
|
0.5 |
|
|
Non-GAAP operating margin |
|
22.0 |
|
% |
|
22.5 |
|
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220525005419/en/
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FAQ
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