ironSource Announces Fourth Quarter and Full Year 2021 Financial Results
ironSource reported Q4 revenue of $158 million, reflecting a 46% year-over-year growth. Adjusted EBITDA reached $57 million, up 76% year-over-year, with a 36% margin. For the full year 2021, total revenue was $553 million (67% growth) and adjusted EBITDA was $194 million (87% growth). The company announced Q1 2022 guidance of $180-$185 million in revenue, predicting 52% growth, and full-year expectations of $790-$820 million in revenue (45% growth). Net cash at year-end was $782 million.
- Q4 revenue increased by 46% year-over-year to $158 million.
- Adjusted EBITDA for Q4 grew 76% year-over-year to $57 million.
- Full year revenue reached $553 million, marking a 67% year-over-year increase.
- Full year adjusted EBITDA increased by 87% to $194 million.
- Q4 dollar-based net expansion rate was robust at 154%.
- First quarter 2022 revenue guidance is projected at $180-$185 million, indicating 52% year-over-year growth.
- Adjusted EBITDA margins showed a slight decline from 36% in Q4 to a projected 30%-32% in Q1 2022 guidance.
Q4 Revenue of
Q4 Adjusted EBITDA1 of
Full year 2021 Revenue of
Dollar-based net expansion rate of
“Our fourth quarter results capped an outstanding 2021 in which we achieved record yearly revenue of
Fourth Quarter 2021 Financial Highlights:
-
Total revenue of
, an increase of$158 million 46% year-over-year. -
GAAP Net Income of
.$21 million -
Adjusted EBITDA1 of
, an increase of$57 million 76% year-over-year. -
Adjusted EBITDA margin1 of
36% . -
Dollar-based net expansion rate of
154% . -
358 customers each contributed more than
of revenue in the trailing 12 months, representing$100,000 95% of total revenue for the fourth quarter endedDecember 31, 2021 . -
Net cash for the fourth quarter ended
December 31, 2021 was .$782 million
“We have worked hard to further cement our market leadership position in 2021, and are excited about the significant near- and long-term growth opportunities in our total addressable market as we look at the years ahead. We will work to increase our penetration in apps beyond games as those publishers look to adopt the monetization and marketing playbook used by mobile games to boost profitability. We will also continue to enhance and expand the overall set of solutions we offer our customers, such as with our cross-channel marketing solution, to increase our share of wallet.”
Full Year 2021 Financial Highlights:
-
Total revenue of
, an increase of$553 million 67% year-over-year. -
GAAP Net Income of
.$60 million -
Adjusted EBITDA1 of
, an increase of$194 million 87% year-over-year. -
Adjusted EBITDA margin1 of
35% . -
Net cash for the full year ended
December 31, 2021 was .$782 million
Corporate Highlights:
-
Closed the previously-announced acquisitions of
Tapjoy and Bidalgo. Acquisitions that aim to provide deeper market presence across the entireApp Economy beyond games, additional scale and SDK footprint, and an increase in the overall available TAM.
- Announced the launch of App Analytics, centralizing even more critical app business functions within our platform, and expanding the number of roles ironSource can serve within an app-based business - from monetization and marketing managers, to game designers, product managers, and the executive team.
- Expanded the Aura customer base with signed partnership with two new tier 1 telecom operators to integrate the Aura solution suite on its devices.
Business Outlook:
ironSource is introducing first quarter of 2022 guidance and guidance for the fiscal year ending
First quarter of fiscal 2022:
-
Total revenue is expected to be between
and$180m , representing$185m 52% year-over-year growth at the midpoint. -
Adjusted EBITDA2 is expected to be between
and$56m , representing$58m 44% year-over-year growth at the midpoint.
Full Year fiscal 2022:
-
Total revenue is expected to be in the range of
to$790m , representing$820m 45% year-over-year growth at the midpoint. -
Adjusted EBITDA2 is expected to be in the range of
to$255m , representing$265m 34% year-over-year growth at the midpoint.
($ in millions) |
|
Q122 Guidance |
|
FY22 Guidance |
Revenue |
|
|
|
|
Revenue Y/Y growth Rate |
|
|
|
|
Adjusted EBITDA |
|
|
|
|
Adjusted EBITDA Margin |
|
|
|
|
Fully Diluted shares outstanding |
|
~1.1B shares |
|
|
Conference Call Information:
ironSource will host a conference call and live webcast for analysts and investors at
Parties in
____________
1 Adjusted EBITDA and Adjusted EBITDA margin are financial measures that are not required by, or presented in accordance with,
2 Adjusted EBITDA is a financial measure that is not required by, or presented in accordance with,
The webcast will be posted on ironSource’s investor relations website at investors.is.com shortly after the call and will remain accessible for one year. A telephonic replay of the conference call will be available through
Q1 Conference Schedule:
ironSource management is scheduled to participate in the Morgan Stanley Technology, Media and Telecom conference on
Key Performance Metrics and Non-GAAP Financial Measures
ironSource monitors the key business metrics set forth below to help evaluate the business and growth trends, establish budgets, measure the effectiveness of sales and marketing efforts, and assess operational efficiencies. The calculation of the key metrics discussed below may differ from other similarly-titled metrics used by other companies, securities analysts or investors.
Customers Contributing More than
ironSource’s larger customer relationships drive scale, improved unit economics and operating leverage in its business model, which improves ironSource’s solutions and thereby increases the value proposition to all of ironSource’s customers. To measure ironSource’s ability to scale with its customers and attract large enterprises to its platform, ironSource counts the number of customers that contributed more than
Dollar-Based Net Expansion Rate
ironSource believes the growth in the use of its platform by existing customers is an important measure of the health of its business and future growth prospects. ironSource monitors its performance in this area using an indicator management refers to as dollar-based net expansion rate. ironSource calculates dollar-based net expansion rate for a period by dividing current period revenue from a set of customers by prior period revenue of the same set of customers. Prior period revenue is the trailing 12-month revenue measured as of such prior period end. Current period revenue is the trailing 12-month revenue from the same customers as of the current period end. Management’s calculation of dollar-based net expansion rate includes the effect of any customer renewals, expansion, contraction and churn, but excludes revenue from new customers.
Adjusted EBITDA and Adjusted EBITDA Margin
ironSource defines Adjusted EBITDA as income from continuing operations, net of income taxes, as adjusted for income taxes, financial expenses, net and depreciation and amortization, further adjusted for assets impairment, share-based compensation expense and fair value adjustment related to contingent consideration, acquisition-related costs and offering costs. ironSource defines Adjusted EBITDA Margin as Adjusted EBITDA calculated as a percentage of revenue. Adjusted EBITDA and Adjusted EBITDA Margin are included in this press release because they are key metrics used by management and our board of directors to assess our financial performance. Adjusted EBITDA and Adjusted EBITDA Margin are frequently used by analysts, investors and other interested parties to evaluate companies in our industry. ironSource management believes that Adjusted EBITDA and Adjusted EBITDA Margin are appropriate measures of operating performance because each eliminates the impact of expenses that do not relate directly to the performance of the underlying business.
Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures of our financial performance and should not be considered as alternatives to net loss as a measure of financial performance, as alternatives to cash flows from operations as a measure of liquidity, or as alternatives to any other performance measure derived in accordance with GAAP. Adjusted EBITDA and Adjusted EBITDA Margin should not be construed as inferences that our future results will be unaffected by unusual or other items. Additionally, Adjusted EBITDA and Adjusted EBITDA Margin are not intended to be measures of free cash flow for management’s discretionary use, as they do not reflect our tax payments and certain other cash costs that may recur in the future, including, among other things, cash requirements for costs to replace assets being depreciated and amortized. Management compensates for these limitations by relying on our GAAP results in addition to using Adjusted EBITDA and Adjusted EBITDA Margin as supplemental measures. Our measures of Adjusted EBITDA and Adjusted EBITDA Margin are not necessarily comparable to similarly-titled captions of other companies due to different methods of calculation.
For more information on the non-GAAP financial measures, please see the reconciliation tables provided below. The accompanying tables have more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures. The Company has not reconciled its Adjusted EBITDA guidance to net income because net income is not accessible on a forward-looking basis. Certain items that impact Adjusted EBITDA are out of the Company’s control and/or cannot be reasonably predicted. These items include, but are not limited to, share based compensation expenses. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. Accordingly, a reconciliation to net income is not available without unreasonable effort. For more information regarding the non-GAAP financial measures discussed in this release, please see Annex A of this release for the reconciliations of GAAP financial measures to non-GAAP financial measures.
About ironSource
ironSource is a leading business platform for the App Economy. App developers use ironSource’s platform to turn their apps into successful, scalable businesses, leveraging a comprehensive set of software solutions which help them grow and engage users, monetize content, and analyze and optimize business performance to drive more overall growth. The ironSource platform also empowers telecom operators to create a richer device experience, incorporating relevant app and service recommendations to engage users throughout the lifecycle of the device. By providing a comprehensive business platform for the core constituents of the App Economy, ironSource allows customers to focus on what they do best, creating great apps and user experiences, while enabling their business expansion in the App Economy. For more information please visit www.is.com.
Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking” statements and information, within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the safe harbor provisions of the
ironSource cautions you against placing undue reliance on forward-looking statements, which reflect current beliefs and are based on information currently available as of the date a forward-looking statement is made. Forward-looking statements set forth herein speak only as of the date of this communication. Except as required by law, ironSource does not undertake any obligation to revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs. In the event that any forward-looking statement is updated, no inference should be made that ironSource will make additional updates with respect to that statement, related matters, or any other forward-looking statements. Any corrections or revisions and other important assumptions and factors that could cause actual results to differ materially from forward-looking statements, including discussions of significant risk factors, may appear, in ironSource’s public filings with the
Market, ranking and industry data used throughout this communication, including statements regarding market size and technology adoption rates, is based on the good faith estimates of ironSource’s management, which in turn are based upon ironSource’s management’s review of internal surveys, independent industry surveys and publications, including reports by
CONDENSED CONSOLIDATED BALANCE SHEETS
(
(Unaudited)
|
|
|
|
|||||
|
|
2021 |
|
|
2020 |
|
||
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
778,261 |
|
|
$ |
200,672 |
|
Short-term deposits |
|
|
— |
|
|
|
17,627 |
|
Accounts receivable, net of allowances of |
|
|
232,049 |
|
|
|
151,503 |
|
Other current assets |
|
|
42,382 |
|
|
|
15,711 |
|
Total current assets |
|
|
1,052,692 |
|
|
|
385,513 |
|
Long-term restricted cash |
|
|
3,495 |
|
|
|
2,415 |
|
Deferred tax assets |
|
|
2,012 |
|
|
|
161 |
|
Operating lease right-of-use asset |
|
|
34,116 |
|
|
|
36,780 |
|
Property, equipment and software, net |
|
|
25,131 |
|
|
|
23,077 |
|
Investment in equity securities |
|
|
20,000 |
|
|
|
— |
|
|
|
|
240,299 |
|
|
|
79,156 |
|
Intangible assets, net |
|
|
54,221 |
|
|
|
8,084 |
|
Other non-current assets |
|
|
18,857 |
|
|
|
650 |
|
Total assets |
|
$ |
1,450,823 |
|
|
$ |
535,836 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS
(
(Unaudited)
|
|
|
|
|||||
|
|
2021 |
|
|
2020 |
|
||
Liabilities and shareholders’ equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
247,362 |
|
|
$ |
155,476 |
|
Current maturities of long-term loan |
|
|
— |
|
|
|
9,725 |
|
Operating lease liabilities |
|
|
7,525 |
|
|
|
7,429 |
|
Other current liabilities |
|
|
53,949 |
|
|
|
34,034 |
|
Total current liabilities |
|
|
308,836 |
|
|
|
206,664 |
|
Long-term loan, net of current maturities |
|
|
— |
|
|
|
74,684 |
|
Deferred tax liabilities |
|
|
6,514 |
|
|
|
2,521 |
|
Long-term operating lease liabilities |
|
|
30,076 |
|
|
|
32,241 |
|
Other non-current liabilities |
|
|
2,829 |
|
|
|
280 |
|
Total liabilities |
|
|
348,255 |
|
|
|
316,390 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
Shareholders’ equity: |
|
|
|
|
|
|
|
|
Class A and Class B ordinary share, no par value; 11,500,000,000 (Class A 10,000,000,000 and Class B 1,500,000,000) shares authorized; 1,018,468,804 (Class A 652,938,412 and Class B 365,530,392) and 640,266,044 (Class A 320,133,022 and Class B 320,133,022) issued and outstanding at |
|
|
— |
|
|
|
— |
|
2019 ordinary shares, |
|
|
— |
|
|
|
72 |
|
|
|
|
(67,460 |
) |
|
|
— |
|
Additional paid-in capital (*) |
|
|
1,042,589 |
|
|
|
152,251 |
|
Accumulated other comprehensive income |
|
|
495 |
|
|
|
— |
|
Retained earnings |
|
|
126,944 |
|
|
|
67,123 |
|
Total shareholders’ equity |
|
|
1,102,568 |
|
|
|
219,446 |
|
Total liabilities and shareholders’ equity |
|
$ |
1,450,823 |
|
|
$ |
535,836 |
|
(*) |
Per share amounts have been adjusted, on a retroactive basis, for all periods presented, to reflect both the distribution of Class B ordinary shares and the Stock Split, together representing a ratio of 9.98 of each share. |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(
(Unaudited)
|
|
Three Months Ended
|
|
|
Year Ended |
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue |
|
$ |
158,271 |
|
|
$ |
108,354 |
|
|
$ |
553,466 |
|
|
$ |
331,519 |
|
Cost of revenue |
|
|
24,562 |
|
|
|
17,306 |
|
|
|
89,223 |
|
|
|
57,825 |
|
Gross profit |
|
|
133,709 |
|
|
|
91,048 |
|
|
|
464,243 |
|
|
|
273,694 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
22,887 |
|
|
|
17,149 |
|
|
|
90,531 |
|
|
|
51,600 |
|
Sales and marketing |
|
|
56,804 |
|
|
|
42,046 |
|
|
|
208,707 |
|
|
|
119,262 |
|
General and administrative |
|
|
26,193 |
|
|
|
8,910 |
|
|
|
82,638 |
|
|
|
28,746 |
|
Total operating expenses |
|
|
105,884 |
|
|
|
68,105 |
|
|
|
381,876 |
|
|
|
199,608 |
|
Income from operations |
|
|
27,825 |
|
|
|
22,943 |
|
|
|
82,367 |
|
|
|
74,086 |
|
Financial expenses, net |
|
|
(57 |
) |
|
|
1,771 |
|
|
|
2,004 |
|
|
|
4,381 |
|
Income from continuing operations before income taxes |
|
|
27,882 |
|
|
|
21,172 |
|
|
|
80,363 |
|
|
|
69,705 |
|
Income taxes |
|
|
7,077 |
|
|
|
3,852 |
|
|
|
20,542 |
|
|
|
10,896 |
|
Income from continuing operations, net of income taxes |
|
|
20,805 |
|
|
|
17,320 |
|
|
|
59,821 |
|
|
|
58,809 |
|
Income from discontinued operations, net of income taxes |
|
|
— |
|
|
|
4,701 |
|
|
|
— |
|
|
|
36,480 |
|
Net income |
|
$ |
20,805 |
|
|
$ |
22,021 |
|
|
$ |
59,821 |
|
|
$ |
95,289 |
|
Basic net income per ordinary share: (*) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
|
0.02 |
|
|
|
0.02 |
|
|
|
0.07 |
|
|
|
0.07 |
|
Discontinued operations |
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
0.04 |
|
Basic net income per ordinary share |
|
$ |
0.02 |
|
|
$ |
0.03 |
|
|
$ |
0.07 |
|
|
$ |
0.11 |
|
Weighted-average ordinary shares outstanding – basic |
|
|
1,014,509,223 |
|
|
|
639,223,211 |
|
|
|
832,144,353 |
|
|
|
636,450,643 |
|
Diluted net income per ordinary share: (*) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
|
0.02 |
|
|
|
0.02 |
|
|
|
0.06 |
|
|
|
0.06 |
|
Discontinued operations |
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
0.04 |
|
Diluted net income per ordinary share |
|
$ |
0.02 |
|
|
$ |
0.03 |
|
|
$ |
0.06 |
|
|
$ |
0.10 |
|
Weighted-average ordinary shares outstanding – diluted |
|
|
1,094,974,000 |
|
|
|
689,922,172 |
|
|
|
911,059,088 |
|
|
|
681,900,332 |
|
(*) |
Per share amounts have been adjusted, on a retroactive basis, for all periods presented, to reflect both the distribution of Class B ordinary shares and the Stock Split, together representing a ratio of 9.98 of each share. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(
(Unaudited)
|
|
Three Months Ended
|
|
|
Year Ended |
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash flows from operating Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations |
|
$ |
20,805 |
|
|
$ |
17,320 |
|
|
$ |
59,821 |
|
|
$ |
58,809 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
6,690 |
|
|
|
4,628 |
|
|
|
24,118 |
|
|
|
16,858 |
|
Share-based compensation expenses |
|
|
20,714 |
|
|
|
5,005 |
|
|
|
78,515 |
|
|
|
12,596 |
|
Non-cash lease expense |
|
|
1,134 |
|
|
|
2,471 |
|
|
|
595 |
|
|
|
2,791 |
|
Effect of exchange rate changes on cash and cash equivalents and restricted cash |
|
|
(1,812 |
) |
|
|
(1,407 |
) |
|
|
(2,627 |
) |
|
|
(1,395 |
) |
Loss (gain) on disposal of property and equipment |
|
|
1 |
|
|
|
— |
|
|
|
(16 |
) |
|
|
— |
|
Interest accrued and other financial expenses |
|
|
— |
|
|
|
110 |
|
|
|
628 |
|
|
|
271 |
|
Deferred income taxes, net |
|
|
1,178 |
|
|
|
665 |
|
|
|
644 |
|
|
|
(633 |
) |
Changes in operating assets and liabilities, net of effects of businesses acquired: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(41,568 |
) |
|
|
(25,435 |
) |
|
|
(82,584 |
) |
|
|
(39,816 |
) |
Other current assets |
|
|
(10,261 |
) |
|
|
(6,426 |
) |
|
|
(27,721 |
) |
|
|
(5,771 |
) |
Other non-current assets |
|
|
(11,388 |
) |
|
|
(1,746 |
) |
|
|
(21,442 |
) |
|
|
(3,913 |
) |
Accounts payable |
|
|
33,932 |
|
|
|
23,450 |
|
|
|
97,701 |
|
|
|
40,706 |
|
Other current liabilities |
|
|
8,886 |
|
|
|
6,690 |
|
|
|
14,553 |
|
|
|
11,118 |
|
Other non-current liabilities |
|
|
1,274 |
|
|
|
4 |
|
|
|
1,705 |
|
|
|
35 |
|
Net cash provided by continuing operating activities |
|
|
29,585 |
|
|
|
25,329 |
|
|
|
143,890 |
|
|
|
91,656 |
|
Net cash provided by (used in) discontinued operating activities |
|
|
— |
|
|
|
6,188 |
|
|
|
(5,168 |
) |
|
|
52,771 |
|
Net cash provided by operating activities |
|
|
29,585 |
|
|
|
31,517 |
|
|
|
138,722 |
|
|
|
144,427 |
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment |
|
|
(391 |
) |
|
|
(94 |
) |
|
|
(1,419 |
) |
|
|
(1,049 |
) |
Capitalized software development costs |
|
|
(2,662 |
) |
|
|
(2,968 |
) |
|
|
(10,821 |
) |
|
|
(12,024 |
) |
Purchase of intangible assets |
|
|
— |
|
|
|
— |
|
|
|
(1,950 |
) |
|
|
— |
|
Proceeds from sale of property and equipment |
|
|
10 |
|
|
|
— |
|
|
|
31 |
|
|
|
— |
|
Acquisitions, net of cash acquired |
|
|
(38,209 |
) |
|
|
— |
|
|
|
(127,549 |
) |
|
|
— |
|
Purchase of equity investment |
|
|
— |
|
|
|
— |
|
|
|
(20,000 |
) |
|
|
— |
|
Investments in short-term deposits |
|
|
— |
|
|
|
(17,590 |
) |
|
|
— |
|
|
|
(60,180 |
) |
Maturities of short-term deposits |
|
|
— |
|
|
|
37,590 |
|
|
|
17,590 |
|
|
|
50,690 |
|
Net cash provided by (used in) continuing investing activities |
|
|
(41,252 |
) |
|
|
16,938 |
|
|
|
(144,118 |
) |
|
|
(22,563 |
) |
Net cash provided by (used in) discontinued investing activities |
|
|
— |
|
|
|
(928 |
) |
|
|
— |
|
|
|
(5,082 |
) |
Net cash provided by (used in) investing activities |
|
|
(41,252 |
) |
|
|
16,010 |
|
|
|
(144,118 |
) |
|
|
(27,645 |
) |
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repayment of long-term loan |
|
|
— |
|
|
|
(2,500 |
) |
|
|
(85,000 |
) |
|
|
(7,500 |
) |
Proceeds from Recapitalization transaction, net |
|
|
— |
|
|
|
— |
|
|
|
663,813 |
|
|
|
— |
|
Exercise of options and restricted share units |
|
|
738 |
|
|
|
827 |
|
|
|
2,625 |
|
|
|
1,731 |
|
Other |
|
|
— |
|
|
|
(540 |
) |
|
|
— |
|
|
|
(540 |
) |
Net cash provided by (used in) continuing financing activities |
|
|
738 |
|
|
|
(2,213 |
) |
|
|
581,438 |
|
|
|
(6,309 |
) |
Net cash provided by (used in) discontinued financing activities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net cash provided by (used in) financing activities |
|
|
738 |
|
|
|
(2,213 |
) |
|
|
581,438 |
|
|
|
(6,309 |
) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash |
|
|
1,812 |
|
|
|
1,407 |
|
|
|
2,627 |
|
|
|
1,395 |
|
Net change in cash and cash equivalents and restricted cash |
|
|
(10,929 |
) |
|
|
45,314 |
|
|
|
576,042 |
|
|
|
110,473 |
|
Cash and cash equivalents and restricted cash at beginning of the period |
|
|
790,873 |
|
|
|
156,366 |
|
|
|
203,087 |
|
|
|
91,219 |
|
Cash and cash equivalents and restricted cash at end of the period |
|
$ |
781,756 |
|
|
$ |
203,087 |
|
|
$ |
781,756 |
|
|
$ |
203,087 |
|
Annex A
Non-GAAP Financial Metrics
(
(Unaudited)
The following tables show the Company’s non-GAAP financial metrics reconciled to the comparable GAAP financial metrics included in this release.
Reconciliation of GAAP to Non-GAAP net income from continuing operations, net of income taxes and net income per share:
|
|
Q4 2021 |
|
|
Q4 2020 |
|
|
FY 2021 |
|
|
FY 2020 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP Income from continuing operations, net of income taxes |
|
$ |
20,805 |
|
|
$ |
17,320 |
|
|
$ |
59,821 |
|
|
$ |
58,809 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation expense |
|
|
20,714 |
|
|
|
5,005 |
|
|
|
78,515 |
|
|
|
12,596 |
|
Depreciation and amortization |
|
|
6,690 |
|
|
|
4,628 |
|
|
|
24,118 |
|
|
|
16,858 |
|
Acquisition-related costs |
|
|
2,033 |
|
|
|
— |
|
|
|
4,487 |
|
|
|
— |
|
Offering Costs |
|
|
— |
|
|
|
— |
|
|
|
4,214 |
|
|
|
— |
|
Non-GAAP net income |
|
$ |
50,242 |
|
|
$ |
26,953 |
|
|
$ |
171,155 |
|
|
$ |
88,263 |
|
Weighted-average ordinary shares outstanding—basic* |
|
|
1,014,509,223 |
|
|
|
639,223,211 |
|
|
|
832,144,353 |
|
|
|
636,450,643 |
|
Basic Non-GAAP net income per ordinary share* |
|
$ |
0.05 |
|
|
$ |
0.03 |
|
|
$ |
0.18 |
|
|
$ |
0.10 |
|
Weighted-average ordinary shares outstanding—diluted* |
|
|
1,094,974,000 |
|
|
|
689,922,172 |
|
|
|
911,059,088 |
|
|
|
681,900,332 |
|
Diluted Non-GAAP net income per ordinary share* |
|
$ |
0.05 |
|
|
$ |
0.03 |
|
|
$ |
0.17 |
|
|
$ |
0.09 |
|
* |
Per share amounts have been adjusted, on a retroactive basis, for all periods presented, to reflect both the distribution of Class B ordinary shares and the Stock Split, together representing a ratio of 9.98 of each share. |
(Unaudited)
Adjusted EBITDA and Adjusted EBITDA margin and a reconciliation of GAAP income from continuing operations, net of income taxes to Adjusted EBITDA:
|
|
Q4 2021 |
|
|
Q4 2020 |
|
|
FY 2021 |
|
|
FY 2020 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP Income from continuing operations, net of income taxes |
|
$ |
20,805 |
|
|
$ |
17,320 |
|
|
$ |
59,821 |
|
|
$ |
58,809 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses, net |
|
|
(57 |
) |
|
|
1,771 |
|
|
|
2,004 |
|
|
|
4,381 |
|
Income taxes |
|
|
7,077 |
|
|
|
3,852 |
|
|
|
20,542 |
|
|
|
10,896 |
|
Share-based compensation expense |
|
|
20,714 |
|
|
|
5,005 |
|
|
|
78,515 |
|
|
|
12,596 |
|
Depreciation and amortization |
|
|
6,690 |
|
|
|
4,628 |
|
|
|
24,118 |
|
|
|
16,858 |
|
Acquisition-related costs |
|
|
2,033 |
|
|
|
— |
|
|
|
4,487 |
|
|
|
— |
|
Offering Costs |
|
|
— |
|
|
|
— |
|
|
|
4,214 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
57,262 |
|
|
$ |
32,576 |
|
|
$ |
193,701 |
|
|
$ |
103,540 |
|
Revenue |
|
$ |
158,271 |
|
|
$ |
108,354 |
|
|
$ |
553,466 |
|
|
$ |
331,519 |
|
Income from continuing operations, net of income taxes margin |
|
|
13 |
% |
|
|
16 |
% |
|
|
11 |
% |
|
|
18 |
% |
Adjusted EBITDA margin |
|
|
36 |
% |
|
|
30 |
% |
|
|
35 |
% |
|
|
31 |
% |
Reconciliation of GAAP to Non-GAAP gross profit and gross profit margin:
|
|
Q4 2021 |
|
|
Q4 2020 |
|
|
FY 2021 |
|
|
FY 2020 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP gross profit |
|
$ |
133,709 |
|
|
$ |
91,048 |
|
|
$ |
464,243 |
|
|
$ |
273,694 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation expense |
|
|
304 |
|
|
|
191 |
|
|
|
1,217 |
|
|
|
316 |
|
Depreciation and amortization |
|
|
5,855 |
|
|
|
4,033 |
|
|
|
20,949 |
|
|
|
14,487 |
|
Non-GAAP gross profit |
|
$ |
139,868 |
|
|
$ |
95,272 |
|
|
$ |
486,409 |
|
|
$ |
288,497 |
|
GAAP gross margin |
|
|
84 |
% |
|
|
84 |
% |
|
|
84 |
% |
|
|
83 |
% |
Non-GAAP gross margin |
|
|
88 |
% |
|
|
88 |
% |
|
|
88 |
% |
|
|
87 |
% |
(Unaudited)
Reconciliation of GAAP to Non-GAAP operating expenses:
Research and development |
|
Q4 2021 |
|
|
Q4 2020 |
|
|
FY 2021 |
|
|
FY 2020 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP research and development expense |
|
$ |
22,887 |
|
|
$ |
17,149 |
|
|
$ |
90,531 |
|
|
$ |
51,600 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation expense |
|
|
6,864 |
|
|
|
1,529 |
|
|
|
24,419 |
|
|
|
3,881 |
|
Acquisition-related costs |
|
|
234 |
|
|
|
— |
|
|
|
465 |
|
|
|
— |
|
Non-GAAP research and development expense |
|
$ |
15,789 |
|
|
$ |
15,620 |
|
|
$ |
65,647 |
|
|
$ |
47,719 |
|
GAAP research and development expense as a percentage of revenue |
|
|
14 |
% |
|
|
16 |
% |
|
|
16 |
% |
|
|
16 |
% |
Non-GAAP research and development expense as a percentage of revenue |
|
|
10 |
% |
|
|
14 |
% |
|
|
12 |
% |
|
|
14 |
% |
Sales and marketing |
|
Q4 2021 |
|
|
Q4 2020 |
|
|
FY 2021 |
|
|
FY 2020 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP sales and marketing expense |
|
$ |
56,804 |
|
|
$ |
42,046 |
|
|
$ |
208,707 |
|
|
$ |
119,262 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation expense |
|
|
4,162 |
|
|
|
2,177 |
|
|
|
16,807 |
|
|
|
4,692 |
|
Depreciation and amortization |
|
|
446 |
|
|
|
231 |
|
|
|
1,678 |
|
|
|
925 |
|
Acquisition-related costs |
|
|
697 |
|
|
|
— |
|
|
|
1,073 |
|
|
|
— |
|
Non-GAAP sales and marketing expense |
|
$ |
51,499 |
|
|
$ |
39,638 |
|
|
$ |
189,149 |
|
|
$ |
113,645 |
|
GAAP sales and marketing expense as a percentage of revenue |
|
|
36 |
% |
|
|
39 |
% |
|
|
38 |
% |
|
|
36 |
% |
Non-GAAP sales and marketing expense as a percentage of revenue |
|
|
33 |
% |
|
|
37 |
% |
|
|
34 |
% |
|
|
34 |
% |
General and administrative |
|
Q4 2021 |
|
|
Q4 2020 |
|
|
FY 2021 |
|
|
FY 2020 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP general and administrative expense |
|
$ |
26,193 |
|
|
$ |
8,910 |
|
|
$ |
82,638 |
|
|
$ |
28,746 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation expense |
|
|
9,384 |
|
|
|
1,108 |
|
|
|
36,072 |
|
|
|
3,707 |
|
Depreciation and amortization |
|
|
389 |
|
|
|
364 |
|
|
|
1,491 |
|
|
|
1,446 |
|
Acquisition-related costs |
|
|
1,102 |
|
|
|
— |
|
|
|
2,949 |
|
|
|
— |
|
Offering Costs |
|
|
— |
|
|
|
— |
|
|
|
4,214 |
|
|
|
— |
|
Non-GAAP general and administrative expense |
|
$ |
15,318 |
|
|
$ |
7,438 |
|
|
$ |
37,912 |
|
|
$ |
23,593 |
|
GAAP general and administrative expense as a percentage of revenue |
|
|
17 |
% |
|
|
8 |
% |
|
|
15 |
% |
|
|
9 |
% |
Non-GAAP general and administrative expense as a percentage of revenue |
|
|
10 |
% |
|
|
7 |
% |
|
|
7 |
% |
|
|
7 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220216005152/en/
Investor Relations
daniel.amir@is.com
+ 1 415-725-5900
Media Contact
ironSourcePR@icrinc.com
+1 646-277-1289
Source: ironSource
FAQ
What were ironSource's Q4 2021 financial results for stock symbol IS?
What is ironSource's revenue guidance for Q1 2022?
What is the full-year revenue guidance for ironSource in 2022?
How did ironSource perform in 2021 compared to 2020?