DigitalOcean Announces Fourth Quarter and Fiscal Year 2021 Financial Results
DigitalOcean reported a 37% increase in fourth-quarter revenue, reaching $119.7 million, with a net dollar retention rate of 116%. The average revenue per customer grew by 29% year-over-year to $65.87. Free cash flow constituted 6% of revenue in 2021, marking the first year of positive cash flow. For 2022, DigitalOcean anticipates revenue between $564 million and $568 million and a non-GAAP earnings per share of $0.70 to $0.71. The company also announced a $300 million stock repurchase program to offset dilution from employee grants.
- Fourth quarter revenue increased by 37% year-over-year to $119.7 million.
- Net dollar retention rate improved to 116%, indicating strong customer retention.
- First year of positive free cash flow at 6% of revenue.
- Loss from operations was $10.1 million with an operating margin of -8%.
- Net loss per share was $(0.11), indicating continued challenges despite revenue growth.
Fourth Quarter Revenue Grew
Fourth Quarter Average Revenue Per Customer Increased
Free Cash Flow was
“2021 was a transformational year for DigitalOcean,” said
Fourth Quarter 2021 Financial Highlights:
-
Revenue was
$119.7 million 37% year-over-year. -
Annual Run-Rate Revenue (ARR) ended the year at
$490 million 37% year-over-year growth. -
Gross profit of
$75.3 million 63% of revenue and adjusted gross profit of$97.4 million 81% of revenue. -
Loss from operations was
$10.1 million -
Non-GAAP income from operations was
$14.1 million 12% . -
Adjusted EBITDA was
$37.8 million 32% of revenue. -
Net loss per share was
$(0.11) $0.10 -
Cash, cash equivalents, and restricted cash was
$1.7 billion December 31, 2021 .
Fourth Quarter 2021 Operational Highlights:
-
Net Dollar Retention Rate (NDR) was
116% , up from105% in the fourth quarter 2020. -
Average Revenue Per Customer (ARPU) in the quarter was
$65.87 29% over the fourth quarter 2020. -
Total customers grew to 609K, with 99K customers paying more than
$50 83% of total revenue, grew24% over the fourth quarter 2020, and had NDR of117% . -
Raised
$1.5 billion 0% convertible senior notes due in 2026 providing capital to help fund expansion efforts. -
Hired
Gabe Monroy , a product management expert from Microsoft, as Chief Product Officer to lead the company’s product vision to drive growth and innovation and enhance theDigitalOcean customer experience.
Fiscal Year 2021 Financial Highlights:
-
Revenue was
$428.6 million 35% year-over-year. -
Gross profit of
$258.0 million 60% of revenue and adjusted gross profit of$341.1 million 80% of revenue. -
Loss from operations was
$11.2 million -
Non-GAAP income from operations was
$50.4 million 12% . -
Adjusted EBITDA was
$136.3 million 32% . -
Net loss per share was
$(0.21) $0.34
Fiscal Year 2021 Operational Highlights:
-
NDR was
113% , up from103% in fiscal year 2020. -
ARPU was
$59.96 25% over fiscal year 2020. - Acquired serverless provider Nimbella, expanding the company’s capabilities into the rapidly growing function-as-a-service (FaaS) market.
- Launched DigitalOcean Managed MongoDB, a fully-managed database as a service (DBaaS) offering in partnership with MongoDB, Inc.
Stock Repurchase:
“This stock buyback is a commitment to our investors that we will take advantage of our positive free cash flow and strong balance sheet to offset dilution that we will experience from equity grants made to attract and retain employee talent and maximize stockholder value,” said
Open market repurchases will be structured to occur within the pricing and volume requirements of Rule 10b-18. The company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization. This program does not obligate the company to acquire any particular amount of common stock and the program may be extended, modified, suspended or discontinued at any time at the company’s discretion.
Investor Day Announcement:
Financial Outlook:
Based on information available as of
-
Total revenue of
$126.0 $126.5 million -
Non-GAAP operating margin of
12% to13% . -
Non-GAAP earnings per share of
$0.10 $0.12 - Fully diluted weighted average shares outstanding of approximately 128 million shares.
For the full year 2022, we expect:
-
Total revenue of
$564 $568 million -
Non-GAAP operating margin of
13% to15% . -
Free cash flow in the range of
8% to10% of revenue. -
Non-GAAP earnings per share of
$0.70 $0.71 - Fully diluted weighted average shares outstanding of approximately 128 million shares.
A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. Stock-based compensation expense-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change. Accordingly, a reconciliation is not available without unreasonable effort, although it is important to note that these factors could be material to our results computed in accordance with GAAP.
Conference Call Information:
Following the completion of the call, a telephonic replay will be available through
About
Forward‑Looking Statements
This 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, regarding our performance, including but not limited to statements in the section titled “Financial Outlook.” The forward-looking statements contained in this release and the accompanying earnings call referenced in this release 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: (1) our recent growth may not be indicative of our future growth; (2) our history of operating losses; (3) our limited operating history; (4) our ability to attract and retain customers and/or expand usage of our platform by such customers; (5) breaches in our security measures allowing unauthorized access to our platform, our data, or our customers’ data; (6) our ability to release updates and new features to our platform and adapt and respond effectively to rapidly changing technology or customer needs; (7) the competitive markets in which we participate; (8) the rapidly evolving laws and industry standards that relate to privacy, data security, liability for service providers regarding the activities of customers, and access to the internet; (9) risks associated with successfully managing our growth; and (10) general market, political, economic, and business conditions.
Further information on these and additional risks, uncertainties, assumptions and other factors that could cause actual results or outcomes 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 our Quarterly Report on Form 10-Q for the quarter ended
We operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this release. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur. The forward-looking statements made in this release relate only to events as of the date on which the statements are made. We assume no obligation to, and do not currently intend to, update any such forward-looking statements after the date of this release.
About Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in
Adjusted Gross Profit and Adjusted Gross Margin
We believe adjusted gross profit and adjusted gross margin, when taken together with our GAAP financial results, provides a meaningful assessment of our performance, and is useful for the preparation of our annual operating budget and quarterly forecasts.
We define adjusted gross profit as gross profit exclusive of stock-based compensation, amortization of capitalized internal-use software development costs and depreciation of our data center equipment included within Cost of revenue. We exclude stock-based compensation, which is a non-cash item, because we do not consider it indicative of our core operating performance. We exclude depreciation and amortization, which primarily relates to our investments in our data center servers that are long lived assets with an economic life of five years, because it may not reflect our current or future cash spending levels to support our business. While we intend to spend a significant amount on capital expenditures on an absolute basis in the coming years, our capital expenditures as a percentage of revenue has declined significantly and will continue to decline. We define adjusted gross margin as a percentage of adjusted gross profit to revenue.
Non-GAAP Income from Operations and Non-GAAP Operating Margin
We define non-GAAP income from operations as Loss from operations excluding stock-based compensation. We define non-GAAP operating margin as non-GAAP income from operations as a percentage of revenue. We use Non-GAAP income from operations to understand and evaluate our core operating performance and trends and to develop short-term and long-term operating plans. We believe that Non-GAAP income from operations facilitates comparison of our operating performance on a consistent basis between periods, and when viewed in combination with our results prepared in accordance with GAAP, helps provide a broader picture of factors and trends affecting our results of operations.
Adjusted EBITDA and Adjusted EBITDA Margin
We define adjusted EBITDA as net loss attributable to common stockholders, adjusted to exclude depreciation and amortization, stock-based compensation, interest expense, income tax expense, loss on extinguishment of debt, restructuring and severance expense, asset impairment, revaluation of warrants, acquisition related costs, a release of a VAT reserve and other charges. We believe that adjusted EBITDA, when taken together with our GAAP financial results, provides meaningful supplemental information regarding our operating performance and facilitates internal comparisons of our historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, we believe that the use of adjusted EBITDA is helpful to our investors as it is a measure used by management in assessing the health of our business, determining incentive compensation, evaluating our operating performance, and for internal planning and forecasting purposes.
Non-GAAP Net Income (Loss) and Non-GAAP Diluted Net Income (Loss) per Share
We define non-GAAP net income (loss) as Net loss attributable to common stockholders, excluding stock-based compensation, amortization of acquired intangibles, acquisition related costs, and a release of a VAT reserve. We define non-GAAP diluted net income (loss) per share as non-GAAP net income (loss) divided by the weighted-average shares including the dilutive effects of our convertible preferred stock, warrants, stock options, RSUs, PRSUs and Convertible Notes.
We believe non-GAAP net income (loss) per share provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this metric generally eliminates the effects of unusual or non-recurring items from period to period for reasons unrelated to overall operating performance.
Free Cash Flow and Free Cash Flow Margin
Free cash flow is a non-GAAP financial measure that we define as Net cash provided by operating activities less purchases of property and equipment, capitalized internal-use software costs and purchase of intangible assets. Free cash flow margin is calculated as free cash flow divided by total revenue. We believe that free cash flow and free cash flow margin are useful indicators of liquidity that provide information to management and investors about the amount of cash generated from our core operations that, after the purchases of property and equipment, can be used for strategic initiatives, including investing in our business and selectively pursuing acquisitions and strategic investments. We further believe that historical and future trends in free cash flow and free cash flow margin, even if negative, provide useful information about the amount of Net cash provided by operating activities that is available (or not available) to be used for strategic initiatives. For example, if free cash flow is negative, we may need to access cash reserves or other sources of capital to invest in strategic initiatives. One limitation of free cash flow and free cash flow margin is that they do not reflect our future contractual commitments. Additionally, free cash flow does not represent the total increase or decrease in our cash balance for a given period.
Key Business Metrics:
We utilize the key metrics set forth below to help us evaluate our business and growth, identify trends, formulate financial projections and make strategic decisions.
Customers
We define a customer at the end of any period as a person or entity who has incurred usage in the period and, as a result, has generated an invoice of greater than
ARPU
We calculate ARPU on a monthly basis as our total revenue in that period divided by the number of customers determined as of the last day of that period. For a quarterly or annual period, ARPU is determined as the weighted average monthly ARPU over such three or 12-month period.
ARR
We calculate ARR at a point in time by multiplying the latest monthly period’s revenue by 12.
Net Dollar Retention Rate
We calculate net dollar retention rate monthly by starting with the revenue from the cohort of all customers during the corresponding month 12 months prior, or the Prior Period Revenue. We then calculate the revenue from these same customers as of the current month, or the Current Period Revenue, including any expansion and net of any contraction or attrition from these customers over the last 12 months. The calculation also includes revenue from customers that generated revenue before, but not in, the corresponding month 12 months prior, but subsequently generated revenue in the current month and are therefore reflected in the Current Period Revenue. We include this group of re-engaged customers in this calculation because our customers frequently use our platform for projects that stop and start over time. We then divide the total Current Period Revenue by the total Prior Period Revenue to arrive at the net dollar retention rate for the relevant month. For a quarterly or annual period, the net dollar retention rate is determined as the average monthly net dollar retention rates over such three or 12-month period.
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts) (unaudited) |
||||||||
|
|
|
|
|||||
CURRENT ASSETS: |
|
|
|
|||||
Cash and cash equivalents |
$ |
1,713,387 |
|
|
$ |
100,311 |
|
|
Accounts receivable, less allowance for doubtful accounts of |
|
39,619 |
|
|
|
28,098 |
|
|
Prepaid expenses and other current assets |
|
17,050 |
|
|
|
19,544 |
|
|
Total current assets |
|
1,770,056 |
|
|
|
147,953 |
|
|
|
|
|
|
|||||
Property and equipment, net |
|
249,643 |
|
|
|
238,956 |
|
|
Restricted cash |
|
2,038 |
|
|
|
2,226 |
|
|
|
|
32,170 |
|
|
|
2,674 |
|
|
Intangible assets, net |
|
42,915 |
|
|
|
34,649 |
|
|
Deferred tax assets |
|
88 |
|
|
|
82 |
|
|
Other assets |
|
4,085 |
|
|
|
3,712 |
|
|
Total assets |
$ |
2,100,995 |
|
|
$ |
430,252 |
|
|
|
|
|
|
|||||
CURRENT LIABILITIES: |
|
|
|
|||||
Accounts payable |
|
12,657 |
|
|
|
12,433 |
|
|
Accrued other expenses |
|
31,907 |
|
|
|
27,025 |
|
|
Deferred revenue |
|
4,826 |
|
|
|
4,873 |
|
|
Current portion of long-term debt |
|
— |
|
|
|
17,468 |
|
|
Other current liabilities |
|
8,849 |
|
|
|
22,986 |
|
|
Total current liabilities |
$ |
58,239 |
|
|
$ |
84,785 |
|
|
|
|
|
|
|||||
Deferred tax liabilities |
|
421 |
|
|
|
211 |
|
|
Long-term debt |
|
1,462,676 |
|
|
|
242,215 |
|
|
Other long-term liabilities |
|
1,462 |
|
|
|
2,061 |
|
|
Total liabilities |
$ |
1,522,798 |
|
|
$ |
329,272 |
|
|
Commitments and Contingencies |
|
|
|
|||||
|
|
|
|
|||||
Convertible preferred stock |
$ |
— |
|
|
$ |
173,074 |
|
|
|
|
|
|
|||||
Preferred stock ( |
$ |
— |
|
|
$ |
— |
|
|
Common stock ( |
|
2 |
|
|
|
1 |
|
|
|
|
(4,598 |
) |
|
|
(4,598 |
) |
|
Additional paid-in capital |
|
769,705 |
|
|
|
99,783 |
|
|
Accumulated other comprehensive loss |
|
(374 |
) |
|
|
(245 |
) |
|
Accumulated deficit |
|
(186,538 |
) |
|
|
(167,035 |
) |
|
Total stockholders’ equity (deficit) |
$ |
578,197 |
|
|
$ |
(72,094 |
) |
|
|
|
|
|
|||||
Total liabilities, convertible preferred stock and stockholders’ equity (deficit) |
$ |
2,100,995 |
|
|
$ |
430,252 |
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) |
||||||||||||||||
|
Three Months Ended |
|
Year Ended |
|||||||||||||
|
|
|
|
|||||||||||||
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
Revenue |
$ |
119,662 |
|
|
$ |
87,517 |
|
|
$ |
428,561 |
|
|
$ |
318,380 |
|
|
Cost of revenue |
|
44,400 |
|
|
|
38,581 |
|
|
|
170,595 |
|
|
|
145,532 |
|
|
Gross profit |
|
75,262 |
|
|
|
48,936 |
|
|
|
257,966 |
|
|
|
172,848 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|||||||||
Research and development |
|
36,234 |
|
|
|
20,657 |
|
|
|
115,684 |
|
|
|
74,970 |
|
|
Sales and marketing |
|
15,333 |
|
|
|
9,361 |
|
|
|
50,878 |
|
|
|
33,472 |
|
|
General and administrative |
|
33,834 |
|
|
|
17,280 |
|
|
|
102,590 |
|
|
|
80,197 |
|
|
Total operating expenses |
|
85,401 |
|
|
|
47,298 |
|
|
|
269,152 |
|
|
|
188,639 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Loss (income) from operations |
|
(10,139 |
) |
|
|
1,638 |
|
|
|
(11,186 |
) |
|
|
(15,791 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Other (income) expense: |
|
|
|
|
|
|
|
|||||||||
Interest expense |
|
1,069 |
|
|
|
3,125 |
|
|
|
3,744 |
|
|
|
13,610 |
|
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
3,435 |
|
|
|
259 |
|
|
Other (income) expense, net |
|
(7 |
) |
|
|
12,318 |
|
|
|
(164 |
) |
|
|
12,997 |
|
|
Other (income) expense |
|
1,062 |
|
|
|
15,443 |
|
|
|
7,015 |
|
|
|
26,866 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Loss before income taxes |
|
(11,201 |
) |
|
|
(13,805 |
) |
|
|
(18,201 |
) |
|
|
(42,657 |
) |
|
Income tax expense |
|
924 |
|
|
|
46 |
|
|
|
1,302 |
|
|
|
911 |
|
|
Net loss attributable to common stockholders |
$ |
(12,125 |
) |
|
$ |
(13,851 |
) |
|
$ |
(19,503 |
) |
|
$ |
(43,568 |
) |
|
Net loss per share attributable to common stockholders, basic and diluted |
$ |
(0.11 |
) |
|
$ |
(0.32 |
) |
|
$ |
(0.21 |
) |
|
$ |
(1.05 |
) |
|
Weighted-average shares used to compute net loss per share, basic and diluted |
|
107,942 |
|
|
|
43,025 |
|
|
|
93,224 |
|
|
|
41,658 |
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) |
||||||||
|
Year Ended |
|||||||
|
|
2021 |
|
|
|
2020 |
|
|
Operating activities |
|
|
|
|||||
Net loss attributable to common stockholders |
$ |
(19,503 |
) |
|
$ |
(43,568 |
) |
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|||||
Depreciation and amortization |
|
88,372 |
|
|
|
75,574 |
|
|
Stock-based compensation |
|
61,577 |
|
|
|
29,456 |
|
|
Bad debt expense |
|
9,207 |
|
|
|
11,089 |
|
|
Loss on extinguishment of debt |
|
3,435 |
|
|
|
259 |
|
|
Release of VAT reserve |
|
(3,188 |
) |
|
|
— |
|
|
Non-cash interest expense |
|
1,357 |
|
|
|
1,107 |
|
|
Loss on impairment |
|
285 |
|
|
|
1,222 |
|
|
Revaluation of warrants |
|
(556 |
) |
|
|
12,825 |
|
|
Other |
|
121 |
|
|
|
(316 |
) |
|
Changes in operating assets and liabilities, net of acquisition: |
|
|
|
|||||
Accounts receivable |
|
(20,727 |
) |
|
|
(17,141 |
) |
|
Prepaid expenses and other current assets |
|
1,130 |
|
|
|
(13,328 |
) |
|
Accounts payable and accrued expenses |
|
9,325 |
|
|
|
2,369 |
|
|
Deferred revenue |
|
(46 |
) |
|
|
567 |
|
|
Other assets and liabilities |
|
2,325 |
|
|
|
(2,000 |
) |
|
Net cash provided by operating activities |
|
133,114 |
|
|
|
58,115 |
|
|
|
|
|
|
|||||
Investing activities |
|
|
|
|||||
Capital expenditures - property and equipment |
|
(97,072 |
) |
|
|
(98,217 |
) |
|
Capital expenditures - internal-use software development |
|
(6,391 |
) |
|
|
(12,328 |
) |
|
Purchase of intangible assets |
|
(5,636 |
) |
|
|
(5,118 |
) |
|
Cash paid for acquisition of businesses, net of cash acquired |
|
(5,000 |
) |
|
|
— |
|
|
Proceeds from sale of equipment |
|
494 |
|
|
|
173 |
|
|
Net cash used in investing activities |
|
(113,605 |
) |
|
|
(115,490 |
) |
|
|
|
|
|
|||||
Financing activities |
|
|
|
|||||
Proceeds from issuance of convertible notes, net of issuance costs |
|
1,462,195 |
|
|
|
— |
|
|
Repayment of capital leases |
|
— |
|
|
|
(3,801 |
) |
|
Repayment of notes payable |
|
(33,214 |
) |
|
|
(14,080 |
) |
|
Proceeds from third-party secured financings |
|
— |
|
|
|
7,795 |
|
|
Repayment of term loan |
|
(166,813 |
) |
|
|
(73,500 |
) |
|
Proceeds from issuance of term loan, net of issuance costs |
|
— |
|
|
|
168,531 |
|
|
Repayment of borrowings under revolving credit facility |
|
(63,200 |
) |
|
|
(84,500 |
) |
|
Proceeds from borrowings under revolving credit facility, net of issuance costs |
|
— |
|
|
|
61,394 |
|
|
Proceeds related to the issuance of common stock under equity incentive plan |
|
18,369 |
|
|
|
13,905 |
|
|
Proceeds from the issuance of common stock under employee stock purchase plan |
|
4,970 |
|
|
|
— |
|
|
Employee payroll taxes paid related to net settlement of equity awards |
|
(3,187 |
) |
|
|
— |
|
|
Proceeds from initial public offering, net of underwriting discounts and commissions and other offering costs |
|
724,384 |
|
|
|
(1,403 |
) |
|
Proceeds from the issuance of convertible preferred stock, net of issuance costs |
|
— |
|
|
|
49,810 |
|
|
Repurchase and retirement of common stock |
|
(350,000 |
) |
|
|
— |
|
|
Repayment of seller’s note |
|
(125 |
) |
|
|
(125 |
) |
|
Net cash provided by financing activities |
|
1,593,379 |
|
|
|
124,026 |
|
|
|
|
|
|
|||||
Increase in cash, cash equivalents and restricted cash |
|
1,612,888 |
|
|
|
66,651 |
|
|
Cash, cash equivalents and restricted cash - beginning of period |
|
102,537 |
|
|
|
35,886 |
|
|
Cash, cash equivalents and restricted cash - end of period |
$ |
1,715,425 |
|
|
$ |
102,537 |
|
|
RECONCILIATION OF GAAP TO NON-GAAP DATA (unaudited) |
||||||||||||||||
Adjusted Gross Profit and Adjusted Gross Margin |
||||||||||||||||
|
Three Months Ended |
|
Year Ended |
|||||||||||||
|
|
|
|
|||||||||||||
(In thousands) |
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
Gross profit |
$ |
75,262 |
|
|
$ |
48,936 |
|
|
$ |
257,966 |
|
|
$ |
172,848 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|||||||||
Depreciation and amortization |
$ |
21,832 |
|
|
$ |
18,701 |
|
|
$ |
81,937 |
|
|
$ |
69,547 |
|
|
Stock-based compensation |
|
350 |
|
|
|
151 |
|
|
|
1,147 |
|
|
|
545 |
|
|
Adjusted gross profit |
$ |
97,444 |
|
|
$ |
67,788 |
|
|
$ |
341,050 |
|
|
$ |
242,940 |
|
|
Gross margin |
|
63 |
% |
|
|
56 |
% |
|
|
60 |
% |
|
|
54 |
% |
|
Adjusted gross margin |
|
81 |
% |
|
|
77 |
% |
|
|
80 |
% |
|
|
76 |
% |
|
Non-GAAP Income from Operations and Non-GAAP Operating Margin |
||||||||||||||||
|
Three Months Ended |
|
Year Ended |
|||||||||||||
|
|
|
|
|||||||||||||
(In thousands) |
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
(Loss) income from operations |
$ |
(10,139 |
) |
|
$ |
1,638 |
|
|
$ |
(11,186 |
) |
|
$ |
(15,791 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|||||||||
Stock-based compensation |
$ |
24,197 |
|
|
$ |
4,591 |
|
|
$ |
61,577 |
|
|
$ |
29,456 |
|
|
Non-GAAP Income from operations |
$ |
14,058 |
|
|
$ |
6,229 |
|
|
$ |
50,391 |
|
|
$ |
13,665 |
|
|
Operating margin |
|
(8 |
)% |
|
|
2 |
% |
|
|
(3 |
)% |
|
|
(5 |
)% |
|
Non-GAAP operating margin |
|
12 |
% |
|
|
7 |
% |
|
|
12 |
% |
|
|
4 |
% |
|
Adjusted EBITDA and Adjusted EBITDA Margin |
||||||||||||||||
|
Three Months Ended |
|
Year Ended |
|||||||||||||
|
|
|
|
|||||||||||||
(In thousands) |
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
Net loss attributable to common stockholders |
$ |
(12,125 |
) |
|
$ |
(13,851 |
) |
|
$ |
(19,503 |
) |
|
$ |
(43,568 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Adjustments: |
|
|
|
|
|
|
|
|||||||||
Depreciation and amortization |
$ |
23,450 |
|
|
$ |
20,371 |
|
|
$ |
88,372 |
|
|
$ |
75,574 |
|
|
Stock-based compensation |
|
24,197 |
|
|
|
4,591 |
|
|
|
61,577 |
|
|
|
29,456 |
|
|
Interest expense |
|
1,069 |
|
|
|
3,125 |
|
|
|
3,744 |
|
|
|
13,610 |
|
|
Income tax expense |
|
924 |
|
|
|
47 |
|
|
|
1,302 |
|
|
|
911 |
|
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
3,435 |
|
|
|
259 |
|
|
Restructuring and severance(1) |
|
— |
|
|
|
37 |
|
|
|
— |
|
|
|
4,213 |
|
|
Asset impairment(2) |
|
73 |
|
|
|
— |
|
|
|
285 |
|
|
|
1,222 |
|
|
Revaluation of warrants |
|
— |
|
|
|
12,373 |
|
|
|
(556 |
) |
|
|
12,825 |
|
|
Acquisition related costs |
|
189 |
|
|
|
— |
|
|
|
469 |
|
|
|
— |
|
|
Release of VAT reserve(3) |
|
— |
|
|
|
— |
|
|
|
(3,188 |
) |
|
|
— |
|
|
Other(4) |
|
— |
|
|
|
398 |
|
|
|
315 |
|
|
|
1,392 |
|
|
Adjusted EBITDA |
$ |
37,777 |
|
|
$ |
27,091 |
|
|
$ |
136,252 |
|
|
$ |
95,894 |
|
|
Adjusted EBITDA margin |
|
32 |
% |
|
|
31 |
% |
|
|
32 |
% |
|
|
30 |
% |
|
_______________ |
|||
(1) |
|
Consists primarily of expenses related to changes in our senior leadership, sales and infrastructure teams. |
|
(2) |
|
Consists of internal-use software impairment charges related to software that is no longer being used. |
|
(3) |
|
Resolution of certain tax matters in certain jurisdictions with relevant authorities. |
|
(4) |
|
Consists primarily of third-party consulting costs to enhance our finance function. |
|
Non-GAAP Net Income (Loss) and Non-GAAP Diluted Net Income (Loss) per Share |
||||||||||||||||
|
Three Months Ended |
|
Year Ended |
|||||||||||||
|
|
|
|
|||||||||||||
(In thousands except per share data) |
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
Net loss attributable to common stockholders |
$ |
(12,125 |
) |
|
$ |
(13,851 |
) |
|
$ |
(19,503 |
) |
|
$ |
(43,568 |
) |
|
Stock-based compensation |
|
24,197 |
|
|
|
4,591 |
|
|
|
61,577 |
|
|
|
29,456 |
|
|
Amortization of acquired intangibles |
|
351 |
|
|
|
76 |
|
|
|
671 |
|
|
|
304 |
|
|
Acquisition related costs |
|
189 |
|
|
|
— |
|
|
|
469 |
|
|
|
— |
|
|
Release of VAT reserve(1) |
|
— |
|
|
|
— |
|
|
|
(3,188 |
) |
|
|
— |
|
|
Income tax effects of non-GAAP adjustments(2) |
|
144 |
|
|
|
(6 |
) |
|
|
233 |
|
|
|
6 |
|
|
Non-GAAP Net income (loss) attributable to common stockholders |
$ |
12,756 |
|
|
$ |
(9,190 |
) |
|
$ |
40,259 |
|
|
$ |
(13,802 |
) |
|
Non-GAAP Diluted net income (loss) per share |
$ |
0.10 |
|
|
$ |
(0.21 |
) |
|
$ |
0.34 |
|
|
$ |
(0.33 |
) |
|
Weighted-average shares used to compute Non-GAAP diluted net income (loss) per share(3) |
|
125,693 |
|
|
|
43,025 |
|
|
|
118,028 |
|
|
|
41,658 |
|
|
___________________ |
|||
(1) |
|
Resolution of certain tax matters in certain jurisdictions with relevant authorities. |
|
(2) |
|
The income tax effects of non-GAAP adjustments are calculated based on the applicable statutory tax rate for the relevant jurisdiction, except for those items which are non-taxable or subject to valuation allowances for which the tax expense (benefit) was calculated at |
|
(3) |
|
Basic weighted-average shares was used to compute both basic and diluted non-GAAP net loss attributable to common stockholders per share for the three months and year ended |
|
Free Cash Flow and Free Cash Flow Margin |
||||||||
|
Year Ended |
|||||||
(In thousands) |
|
2021 |
|
|
|
2020 |
|
|
Net cash provided by operating activities |
$ |
133,114 |
|
|
$ |
58,115 |
|
|
Adjustments: |
|
|
|
|||||
Capital expenditures - property and equipment |
$ |
(97,072 |
) |
|
$ |
(98,217 |
) |
|
Capital expenditures - internal-use software development |
|
(6,391 |
) |
|
|
(12,328 |
) |
|
Purchase of intangible assets |
|
(5,636 |
) |
|
|
(5,118 |
) |
|
Free Cash Flow |
$ |
24,015 |
|
|
$ |
(57,548 |
) |
|
As a percentage of revenue: |
|
|
|
|||||
Net cash provided by operating activities |
|
31 |
% |
|
|
18 |
% |
|
Free cash flow margin |
|
6 |
% |
|
|
(18 |
)% |
|
SUPPLEMENTAL FINANCIAL INFORMATION (unaudited) |
||||||||||||||||
Stock-Based Compensation |
||||||||||||||||
|
Three Months Ended |
|
Year Ended |
|||||||||||||
|
|
|
|
|||||||||||||
| (In thousands) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|||||
Cost of revenue |
$ |
350 |
|
$ |
151 |
|
$ |
1,147 |
|
$ |
545 |
|||||
Research and development |
|
9,521 |
|
|
1,782 |
|
|
23,315 |
|
|
7,765 |
|||||
Sales and marketing |
|
2,850 |
|
|
775 |
|
|
8,471 |
|
|
1,924 |
|||||
General and administrative |
|
11,476 |
|
|
1,883 |
|
|
28,644 |
|
|
19,222 |
|||||
Total |
$ |
24,197 |
|
$ |
4,591 |
|
$ |
61,577 |
|
$ |
29,456 |
|||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20220222006266/en/
Investor Contact
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FAQ
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