Smartsheet Inc. Announces Fourth Quarter and Full Fiscal Year 2022 Results
Smartsheet Inc. (SMAR) reported a strong fourth quarter for fiscal 2022, with total revenue increasing 43% year over year to $157.4 million and calculated billings up 48% to $224.3 million. However, the company faced challenges with a GAAP net loss of $53.1 million and negative cash flow, both operating and free cash flow. For FY23, Smartsheet anticipates revenue growth of 36% to 37%, projecting $750 million to $755 million in total revenue. Notably, the dollar-based net retention rate improved to 134%.
- Total revenue increased 43% year over year to $157.4 million.
- Calculated billings grew 48% year over year to $224.3 million.
- Dollar-based net retention rate rose to 134%, up from 123%.
- GAAP operating loss was $52.1 million, compared to $29.0 million in Q4 FY21.
- GAAP net loss was $53.1 million, up from $28.7 million in Q4 FY21.
- Negative free cash flow of $2.7 million, compared to positive $9.9 million in Q4 FY21.
-
Fourth quarter total revenue grew
43% year over year to$157.4 million -
Fourth quarter calculated billings grew
48% year over year to$224.3 million -
Fourth quarter net operating cash flow was negative
, net free cash flow was negative$0.2 million $2.7 million
"Our results this quarter cap off an incredible fiscal year at Smartsheet,” said
Fourth Quarter Fiscal 2022 Financial Highlights
-
Revenue: Total revenue was
, an increase of$157.4 million 43% year over year. Subscription revenue was , an increase of$145.7 million 44% year over year. Professional services revenue was , an increase of$11.7 million 34% year over year. -
Operating Loss: GAAP operating loss was
, or$52.1 million 33% of total revenue, compared to GAAP operating loss of , or$29.0 million 26% of total revenue, in the fourth quarter of fiscal 2021. Non-GAAP operating loss was , or$14.5 million 9% of total revenue, compared to non-GAAP operating loss of , or$5.3 million 5% of total revenue, in the fourth quarter of fiscal 2021. -
Net Loss: GAAP net loss was
, compared to GAAP net loss of$53.1 million in the fourth quarter of fiscal 2021. GAAP net loss per share was$28.7 million , compared to GAAP net loss per share of$0.42 in the fourth quarter of fiscal 2021. Non-GAAP net loss was$0.23 , compared to non-GAAP net loss of$15.5 million in the fourth quarter of fiscal 2021. Non-GAAP net loss per share was$4.9 million , compared to non-GAAP net loss per share of$0.12 in the fourth quarter of fiscal 2021.$0.04 -
Cash Flow: Net operating cash flow was negative
, compared to net operating cash flow of positive$0.2 million in the fourth quarter of fiscal 2021. Net free cash flow was negative$15.2 million , compared to positive$2.7 million in the fourth quarter of fiscal 2021.$9.9 million
Fiscal Year 2022 Financial Highlights
-
Revenue: Total revenue was
, an increase of$550.8 million 43% year over year. Subscription revenue was , an increase of$507.4 million 44% year over year. Professional services revenue was , an increase of$43.5 million 33% year over year. -
Operating Loss: GAAP operating loss was
, or$170.0 million 31% of total revenue, compared to GAAP operating loss of , or$120.5 million 31% of total revenue, in fiscal 2021. Non-GAAP operating loss was , or$34.2 million 6% of total revenue, compared to non-GAAP operating loss of , or$41.2 million 11% of total revenue, in fiscal 2021. -
Net Loss: GAAP net loss was
, compared to$171.1 million in fiscal 2021. GAAP net loss per share was$115.0 million , compared to GAAP net loss per share of$1.36 in fiscal 2021. Non-GAAP net loss was$0.95 , compared to non-GAAP net loss of$35.3 million in fiscal 2021. Non-GAAP net loss per share was$39.7 million , compared to non-GAAP net loss per share of$0.28 in fiscal 2021.$0.33 -
Cash Flow: Net operating cash flow was negative
, compared to net operating cash flow of negative$3.5 million in fiscal 2021. Net free cash flow was negative$15.6 million , compared to negative$20.8 million in fiscal 2021.$31.6 million
Fiscal Year 2022 Business Highlights
-
Ended the year with a dollar-based net retention rate of
134% , an increase from123% at the end of fiscal year 2021 -
The number of all customers with annualized contract values ("ACV") of
or more grew to 1,026, an increase of$100,000 74% year over year -
The number of all customers with ACV of
or more grew to 2,354, an increase of$50,000 55% year over year -
The number of all customers with ACV of
or more grew to 15,150, an increase of$5,000 28% year over year -
Average ACV per domain-based customer increased to
, an increase of$6,977 37% year over year - Ended the year with 2,539 employees, up 624 from the end of fiscal year 2021
- Introduced Smartsheet Advance, a tiered premium offering to unlock the full potential of Smartsheet’s platform for customers as they scale
- Introduced Pro Plan, our updated entry-level plan, allowing new customers to get started in a more collaborative and cost-efficient way
-
Launched Smartsheet Regions, with the first region in the
European Union , giving global organizations more control over where they host theirSmartsheet content - Enhanced Smartsheet’s enterprise-grade security and governance by introducing Enterprise Plan Manager, customer managed encryption keys, and expanded data retention controls
- Released Work Insights, a new capability that automatically aggregates customers’ data and visualizes it to help uncover key trends, activities, and bottlenecks
-
Unified Smartsheet’s
Resource Management tool with the coreSmartsheet platform so customers can access their resourcing plans directly from their project sheets - Expanded Smartsheet’s ecosystem, including new integrations with Webex, Lucidspark, and HubSpot and new partnerships with McAfee and UiPath
-
Smartsheet and Brandfolder were recognized as leaders on G2’s Grid for Project andPortfolio Management Software and Grid forDigital Asset Management Software , respectively
The section titled "Use of Non-GAAP Financial Measures" below contains a description of the non-GAAP financial measures with a reconciliation between GAAP and non-GAAP information. The section titled "Definitions of Business Metrics" contains definitions of certain non-financial metrics provided within this earnings release.
Financial Outlook
For the first quarter of fiscal year 2023, the Company currently expects:
-
Total revenue of
to$162 million , representing year-over-year growth of$163 million 38% to39% -
Non-GAAP operating loss of
to$25 million $23 million -
Non-GAAP net loss per share of
to$0.20 , assuming basic and diluted weighted average shares outstanding of approximately 128.0 million$0.18
For the full fiscal year 2023, the Company currently expects:
-
Total revenue of
to$750 million , representing year-over-year growth of$755 million 36% to37% -
Calculated billings of
to$905 million , representing year-over-year growth of$925 million 37% to40% -
Non-GAAP operating loss of
to$90 million $80 million -
Non-GAAP net loss per share of
to$0.70 , assuming basic and diluted weighted average shares outstanding of approximately 128.5 million$0.62 -
Net free cash flow of negative
to negative$15 million $10 million
We have not reconciled net free cash flow guidance to net cash from operating activities because we do not provide guidance on the reconciling items between net cash from operating activities and net free cash flow, due to the uncertainty regarding, and the potential variability of, these items. The actual amount of such reconciling items will have a significant impact on our net free cash flow. Accordingly, a reconciliation of net cash from operating activities to net free cash flow guidance is not available without unreasonable effort. We do not provide reconciliation of calculated billings guidance as its components are solely revenue and deferred revenue, and guidance for revenue is already provided.
Conference Call Information
Forward-Looking Statements
This press release contains “forward-looking” statements that are based on our management’s beliefs and assumptions and on information currently available to management. Forward-looking statements include, but are not limited to, statements about Smartsheet’s outlook for the first fiscal quarter ending
Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “believe,” “continue,” “could,” “potential,” “remain,” “will,” “would” or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks include, but are not limited to, risks and uncertainties related to: the impact of the COVID-19 pandemic, our ability to achieve future growth and sustain our growth rate, our ability to attract and retain customers and increase sales to our customers, our ability to develop and release new products and services and to scale our platform, our ability to increase adoption of our platform through our self-service model, our ability to maintain and grow our relationships with strategic partners, the highly competitive and rapidly evolving market in which we participate, our ability to identify targets for, execute on, or realize the benefits of, potential acquisitions, and our international expansion strategies. Further information on risks that could cause actual results to differ materially from forecasted results is included in our filings with the
Use of Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of the non-GAAP financial measures to such GAAP measures are included within this press release.
We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects, and allow for greater transparency with respect to important metrics used by our management for financial and operational decision-making. We are presenting these non-GAAP financial metrics to assist investors in seeing our financial performance through the eyes of management, and because we believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry.
We define non-GAAP operating loss as GAAP operating loss excluding share-based compensation expense, amortization of acquisition-related intangible assets, one-time costs associated with mergers and acquisitions, and litigation expenses and settlements related to matters that are outside the ordinary course of business. We define non-GAAP net loss as GAAP net loss excluding non-recurring income tax adjustments associated with mergers and acquisitions and the same exclusions that are used to derive non-GAAP operating loss. There are a number of limitations related to the use of these non-GAAP measures as compared to GAAP operating loss and net loss, including that the non-GAAP measures exclude share-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense in our business and an important part of our compensation strategy.
We use the non-GAAP financial measure of net free cash flow, which is defined as GAAP net cash flows from operating activities, reduced by cash used for purchases of property and equipment (inclusive of spend on internal-use software), and principal payments on finance lease obligations. We believe net free cash flow is an important liquidity measure of the cash that is available, after capital expenditures and operational expenses, for investment in our business and to make acquisitions. Net free cash flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth. There are a number of limitations related to the use of net free cash flow as compared to net cash from operating activities, including that net free cash flow includes capital expenditures, the benefits of which are realized in periods subsequent to those when expenditures are made.
We define calculated billings as total revenue plus the change in deferred revenue in the period. Because we recognize subscription revenue ratably over the subscription term, calculated billings can be used to measure our subscription sales activity for a particular period, to compare subscription sales activity across particular periods, and as an indicator of future subscription revenue.
Definitions of Business Metrics
Average ACV per domain-based customer
We define average ACV per domain-based customer as total outstanding ACV for domain-based subscriptions as of the end of the reporting period divided by the number of domain-based customers as of the same date. We define domain-based customers as organizations with a unique email domain name.
Dollar-based net retention rate
We calculate dollar-based net retention rate as of a period end by starting with the ACV from the cohort of all customers as of the 12 months prior to such period end, or Prior Period ACV. We then calculate the ACV from these same customers as of the current period end, or Current Period ACV. Current Period ACV includes any upsells and is net of contraction or attrition over the trailing 12 months, but excludes subscription revenue from new customers in the current period. We then divide the total Current Period ACV by the total Prior Period ACV to arrive at the dollar-based net retention rate. Any ACV obtained through merger and acquisition transactions does not affect the dollar-based net retention rate until one year from the date on which the transaction closed.
About
Disclosure of Material Information
Condensed Consolidated Statements of Operations and Comprehensive Loss (in thousands, except per share data) (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenue |
|
|
|
|
|
|
|
||||||||
Subscription |
$ |
145,655 |
|
|
$ |
101,107 |
|
|
$ |
507,375 |
|
|
$ |
352,782 |
|
Professional services |
|
11,731 |
|
|
|
8,764 |
|
|
|
43,457 |
|
|
|
32,731 |
|
Total revenue |
|
157,386 |
|
|
|
109,871 |
|
|
|
550,832 |
|
|
|
385,513 |
|
Cost of revenue |
|
|
|
|
|
|
|
||||||||
Subscription |
|
22,305 |
|
|
|
17,480 |
|
|
|
77,460 |
|
|
|
59,374 |
|
Professional services |
|
10,715 |
|
|
|
6,870 |
|
|
|
39,013 |
|
|
|
26,165 |
|
Total cost of revenue |
|
33,020 |
|
|
|
24,350 |
|
|
|
116,473 |
|
|
|
85,539 |
|
Gross profit |
|
124,366 |
|
|
|
85,521 |
|
|
|
434,359 |
|
|
|
299,974 |
|
Operating expenses |
|
|
|
|
|
|
|
||||||||
Research and development |
|
48,736 |
|
|
|
32,273 |
|
|
|
165,440 |
|
|
|
118,722 |
|
Sales and marketing |
|
98,138 |
|
|
|
62,522 |
|
|
|
329,751 |
|
|
|
230,281 |
|
General and administrative |
|
29,637 |
|
|
|
19,771 |
|
|
|
109,204 |
|
|
|
71,443 |
|
Total operating expenses |
|
176,511 |
|
|
|
114,566 |
|
|
|
604,395 |
|
|
|
420,446 |
|
Loss from operations |
|
(52,145 |
) |
|
|
(29,045 |
) |
|
|
(170,036 |
) |
|
|
(120,472 |
) |
Interest income |
|
13 |
|
|
|
11 |
|
|
|
48 |
|
|
|
1,444 |
|
Other income (expense), net |
|
(925 |
) |
|
|
401 |
|
|
|
(813 |
) |
|
|
296 |
|
Loss before income tax provision (benefit) |
|
(53,057 |
) |
|
|
(28,633 |
) |
|
|
(170,801 |
) |
|
|
(118,732 |
) |
Income tax provision (benefit) |
|
82 |
|
|
|
32 |
|
|
|
296 |
|
|
|
(3,753 |
) |
Net loss and comprehensive loss |
$ |
(53,139 |
) |
|
$ |
(28,665 |
) |
|
$ |
(171,097 |
) |
|
$ |
(114,979 |
) |
Net loss per share, basic and diluted |
$ |
(0.42 |
) |
|
$ |
(0.23 |
) |
|
$ |
(1.36 |
) |
|
$ |
(0.95 |
) |
Weighted-average shares outstanding used to compute net loss per share, basic and diluted |
|
127,038 |
|
|
|
122,620 |
|
|
|
125,632 |
|
|
|
120,663 |
|
Share-based compensation expense included in the condensed consolidated statements of operations and comprehensive loss was as follows (in thousands, unaudited): |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of subscription revenue |
$ |
1,548 |
|
|
$ |
1,254 |
|
|
$ |
6,274 |
|
|
$ |
4,385 |
|
Cost of professional services revenue |
|
1,140 |
|
|
|
571 |
|
|
|
3,788 |
|
|
|
2,146 |
|
Research and development |
|
12,792 |
|
|
|
7,236 |
|
|
|
41,218 |
|
|
|
25,072 |
|
Sales and marketing |
|
12,066 |
|
|
|
7,565 |
|
|
|
40,632 |
|
|
|
25,921 |
|
General and administrative |
|
6,802 |
|
|
|
4,265 |
|
|
|
22,988 |
|
|
|
14,498 |
|
Total share-based compensation expense |
$ |
34,348 |
|
|
$ |
20,891 |
|
|
$ |
114,900 |
|
|
$ |
72,022 |
|
Condensed Consolidated Balance Sheets (in thousands, except share data) (unaudited) |
|||||||
|
|
||||||
|
|
2022 |
|
|
|
2021 |
|
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
449,074 |
|
|
$ |
442,200 |
|
Accounts receivable, net of allowances of |
|
151,138 |
|
|
|
102,648 |
|
Prepaid expenses and other current assets |
|
34,390 |
|
|
|
13,524 |
|
Total current assets |
|
634,602 |
|
|
|
558,372 |
|
Long-term assets |
|
|
|
||||
Restricted cash |
|
17 |
|
|
|
18 |
|
Deferred commissions |
|
91,312 |
|
|
|
60,529 |
|
Property and equipment, net |
|
36,835 |
|
|
|
28,613 |
|
Operating lease right-of-use assets |
|
67,171 |
|
|
|
81,081 |
|
Intangible assets, net |
|
44,096 |
|
|
|
54,139 |
|
|
|
125,605 |
|
|
|
125,605 |
|
Other long-term assets |
|
3,194 |
|
|
|
3,432 |
|
Total assets |
$ |
1,002,832 |
|
|
$ |
911,789 |
|
Liabilities and shareholders’ equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
1,506 |
|
|
$ |
2,851 |
|
Accrued compensation and related benefits |
|
66,744 |
|
|
|
47,861 |
|
Other accrued liabilities |
|
18,901 |
|
|
|
17,263 |
|
Operating lease liabilities, current |
|
18,003 |
|
|
|
17,059 |
|
Deferred revenue |
|
332,285 |
|
|
|
222,689 |
|
Total current liabilities |
|
437,439 |
|
|
|
307,723 |
|
Operating lease liabilities, non-current |
|
58,237 |
|
|
|
71,925 |
|
Deferred revenue, non-current |
|
2,377 |
|
|
|
1,308 |
|
Other long-term liabilities |
|
— |
|
|
|
3,904 |
|
Total liabilities |
|
498,053 |
|
|
|
384,860 |
|
Shareholders’ equity: |
|
|
|
||||
Preferred stock, no par value; 10,000,000 shares authorized, no shares issued or outstanding as of |
|
— |
|
|
|
— |
|
Class A common stock, no par value; 500,000,000 shares authorized, 127,809,525 shares issued and outstanding as of |
|
— |
|
|
|
— |
|
Class B common stock, no par value; 500,000,000 shares authorized, no shares issued and outstanding as of |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
1,047,313 |
|
|
|
898,366 |
|
Accumulated deficit |
|
(542,534 |
) |
|
|
(371,437 |
) |
Total shareholders’ equity |
|
504,779 |
|
|
|
526,929 |
|
Total liabilities and shareholders’ equity |
$ |
1,002,832 |
|
|
$ |
911,789 |
|
Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) |
|||||||
|
Year Ended |
||||||
|
|
2022 |
|
|
|
2021 |
|
Cash flows from operating activities |
|
|
|
||||
Net loss |
$ |
(171,097 |
) |
|
$ |
(114,979 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Share-based compensation expense |
|
114,900 |
|
|
|
71,750 |
|
Depreciation and amortization |
|
21,765 |
|
|
|
17,255 |
|
Amortization of deferred commission costs |
|
43,680 |
|
|
|
30,691 |
|
Unrealized foreign currency (gain) loss |
|
1,048 |
|
|
|
(161 |
) |
Loss on disposal of assets |
|
— |
|
|
|
268 |
|
Non-cash operating lease costs |
|
14,905 |
|
|
|
11,924 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(48,575 |
) |
|
|
(43,112 |
) |
Prepaid expenses and other current assets |
|
(19,884 |
) |
|
|
(3,678 |
) |
Other long-term assets |
|
467 |
|
|
|
(5,819 |
) |
Accounts payable |
|
(1,331 |
) |
|
|
(4,915 |
) |
Other accrued liabilities |
|
1,950 |
|
|
|
5,543 |
|
Accrued compensation and related benefits |
|
19,906 |
|
|
|
5,811 |
|
Deferred commissions |
|
(74,463 |
) |
|
|
(42,965 |
) |
Other long-term liabilities |
|
(3,904 |
) |
|
|
3,904 |
|
Deferred revenue |
|
110,664 |
|
|
|
60,534 |
|
Operating lease liabilities |
|
(13,543 |
) |
|
|
(7,699 |
) |
Net cash used in operating activities |
|
(3,512 |
) |
|
|
(15,648 |
) |
Cash flows from investing activities |
|
|
|
||||
Proceeds from early termination of short-term investments |
|
— |
|
|
|
50,532 |
|
Purchases of long-term investments |
|
(1,000 |
) |
|
|
— |
|
Purchases of property and equipment |
|
(10,563 |
) |
|
|
(4,176 |
) |
Proceeds from sale of property and equipment |
|
— |
|
|
|
1,250 |
|
Capitalized internal-use software development costs |
|
(6,706 |
) |
|
|
(7,608 |
) |
Purchases of intangible assets |
|
(31 |
) |
|
|
— |
|
Payments for business acquisitions, net of cash acquired |
|
— |
|
|
|
(125,055 |
) |
Net cash used in investing activities |
|
(18,300 |
) |
|
|
(85,057 |
) |
Cash flows from financing activities |
|
|
|
||||
Payments on principal of finance leases |
|
— |
|
|
|
(4,129 |
) |
Payments of deferred offering costs |
|
— |
|
|
|
(59 |
) |
Proceeds from exercise of stock options |
|
19,132 |
|
|
|
17,373 |
|
Taxes paid related to net share settlement of restricted stock units |
|
(6,171 |
) |
|
|
(2,150 |
) |
Proceeds from Employee Stock Purchase Plan |
|
17,380 |
|
|
|
14,758 |
|
Net cash provided by financing activities |
|
30,341 |
|
|
|
25,793 |
|
Effects of changes in foreign currency exchange rates on cash, cash equivalents, and restricted cash |
|
(1,197 |
) |
|
|
471 |
|
Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
7,332 |
|
|
|
(74,441 |
) |
Cash, cash equivalents, and restricted cash at beginning of period |
|
442,348 |
|
|
|
516,789 |
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
449,680 |
|
|
$ |
442,348 |
|
Supplemental disclosures |
|
|
|||||
Cash paid for interest |
$ |
— |
$ |
114 |
|||
Cash paid for income taxes |
|
196 |
|
168 |
|||
Right-of-use assets obtained in exchange for operating lease liabilities |
|
994 |
|
35,415 |
|||
Accrued purchases of property and equipment (including internal-use software) |
|
1,164 |
|
1,080 |
|||
Share-based compensation capitalized in internal-use software development costs |
|
1,970 |
|
1,986 |
|||
Fair value of shares issued as consideration for acquisition |
|
— |
|
25,872 |
Reconciliation from GAAP to Non-GAAP Financial Measures (unaudited) |
|||||||||||||||
Reconciliation from GAAP to non-GAAP operating loss and operating margin |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
||||||||
|
(dollars in thousands) |
||||||||||||||
Loss from operations |
$ |
(52,145 |
) |
|
$ |
(29,045 |
) |
|
$ |
(170,036 |
) |
|
$ |
(120,472 |
) |
Add: |
|
|
|
|
|
|
|
||||||||
Share-based compensation expense(1) |
|
35,152 |
|
|
|
20,891 |
|
|
|
115,704 |
|
|
|
72,022 |
|
Amortization of acquisition-related intangible assets(2) |
|
2,508 |
|
|
|
2,791 |
|
|
|
10,059 |
|
|
|
6,266 |
|
One-time acquisition costs |
|
10 |
|
|
|
77 |
|
|
|
27 |
|
|
|
977 |
|
Litigation expenses and settlements(3) |
|
— |
|
|
|
— |
|
|
|
10,000 |
|
|
|
— |
|
Non-GAAP operating loss |
$ |
(14,475 |
) |
|
$ |
(5,286 |
) |
|
$ |
(34,246 |
) |
|
$ |
(41,207 |
) |
|
|
|
|
|
|
|
|
||||||||
Operating margin |
|
(33 |
)% |
|
|
(26 |
)% |
|
|
(31 |
)% |
|
|
(31 |
)% |
Non-GAAP operating margin |
|
(9 |
)% |
|
|
(5 |
)% |
|
|
(6 |
)% |
|
|
(11 |
)% |
(1) |
Includes amortization related to share-based compensation that was capitalized in internal-use software and other assets in previous periods. |
(2) |
Consists entirely of amortization of intangible assets that were recorded as part of purchase accounting and contribute to revenue generation. The amortization of intangible assets related to acquisitions will recur in future periods until such intangible assets have been fully amortized. |
(3) |
Relates to matters that are outside the ordinary course of our business. |
Reconciliation from GAAP to non-GAAP net loss |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
||||||||
|
(in thousands) |
||||||||||||||
Net loss |
$ |
(53,139 |
) |
|
$ |
(28,665 |
) |
|
$ |
(171,097 |
) |
|
$ |
(114,979 |
) |
Add: |
|
|
|
|
|
|
|
||||||||
Share-based compensation expense(1) |
|
35,152 |
|
|
|
20,891 |
|
|
|
115,704 |
|
|
|
72,022 |
|
Amortization of acquisition-related intangible assets(2) |
|
2,508 |
|
|
|
2,791 |
|
|
|
10,059 |
|
|
|
6,266 |
|
One-time acquisition costs |
|
10 |
|
|
|
77 |
|
|
|
27 |
|
|
|
977 |
|
Litigation expenses and settlements(3) |
|
— |
|
|
|
— |
|
|
|
10,000 |
|
|
|
— |
|
Release of valuation allowance(4) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,014 |
) |
Non-GAAP net loss |
$ |
(15,469 |
) |
|
$ |
(4,906 |
) |
|
$ |
(35,307 |
) |
|
$ |
(39,728 |
) |
(1) |
Includes amortization related to share-based compensation that was capitalized in internal-use software and other assets in previous periods. |
(2) |
Consists entirely of amortization of intangible assets that were recorded as part of purchase accounting and contribute to revenue generation. The amortization of intangible assets related to acquisitions will recur in future periods until such intangible assets have been fully amortized. |
(3) |
Relates to matters that are outside the ordinary course of our business. |
(4) |
Relates to a non-recurring income tax adjustment associated with the Brandfolder acquisition. |
Anti-dilutive shares (in thousands) |
|||
|
|
||
2022 |
|
2021 |
|
Shares subject to outstanding common stock awards |
11,855 |
|
11,299 |
Shares issuable pursuant to the Employee Stock Purchase Plan |
52 |
|
162 |
Total potentially dilutive shares |
11,907 |
|
11,461 |
Reconciliation from GAAP to Non-GAAP Financial Measures (unaudited) |
|||||||||||||||
Reconciliation from net operating cash flow to net free cash flow |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
||||||||
|
(in thousands) |
||||||||||||||
Net cash provided by (used in) operating activities |
$ |
(152 |
) |
|
$ |
15,204 |
|
|
$ |
(3,512 |
) |
|
$ |
(15,648 |
) |
Less: |
|
|
|
|
|
|
|
||||||||
Purchases of property and equipment |
|
(1,394 |
) |
|
|
(1,513 |
) |
|
|
(10,563 |
) |
|
|
(4,176 |
) |
Capitalized internal-use software development costs |
|
(1,197 |
) |
|
|
(1,635 |
) |
|
|
(6,706 |
) |
|
|
(7,608 |
) |
Payments on principal of finance leases |
|
— |
|
|
|
(2,156 |
) |
|
|
— |
|
|
|
(4,129 |
) |
Free cash flow |
$ |
(2,743 |
) |
|
$ |
9,900 |
|
|
$ |
(20,781 |
) |
|
$ |
(31,561 |
) |
Reconciliation from revenue to calculated billings |
|||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
||||
|
(in thousands) |
||||||||||
Total revenue |
$ |
157,386 |
|
$ |
109,871 |
|
$ |
550,832 |
|
$ |
385,513 |
Add: |
|
|
|
|
|
|
|
||||
Deferred revenue (end of period) |
|
334,662 |
|
|
223,997 |
|
|
334,662 |
|
|
223,997 |
Less: |
|
|
|
|
|
|
|
||||
Deferred revenue (beginning of period) |
|
267,748 |
|
|
182,683 |
|
|
223,997 |
|
|
158,809 |
Calculated billings |
$ |
224,300 |
|
$ |
151,185 |
|
$ |
661,497 |
|
$ |
450,701 |
|
|||||||||||||||
Reconciliation from GAAP to Non-GAAP Financial Measures |
|||||||||||||||
(unaudited) |
|||||||||||||||
Reconciliation from GAAP to non-GAAP operating loss guidance |
|||||||||||||||
|
Q1 FY 2023 |
|
FY 2023 |
||||||||||||
|
Low |
|
High |
|
Low |
|
High |
||||||||
|
|
|
|
|
|
|
|
||||||||
|
(in millions) |
||||||||||||||
Loss from operations |
$ |
(75.5 |
) |
|
$ |
(73.5 |
) |
|
$ |
(301.0 |
) |
|
$ |
(291.0 |
) |
Add: |
|
|
|
|
|
|
|
||||||||
Share-based compensation expense(1) |
|
48.0 |
|
|
|
48.0 |
|
|
|
201.0 |
|
|
|
201.0 |
|
Amortization of acquisition-related intangible assets(2) |
|
2.5 |
|
|
|
2.5 |
|
|
|
10.0 |
|
|
|
10.0 |
|
Non-GAAP operating loss |
$ |
(25.0 |
) |
|
$ |
(23.0 |
) |
|
$ |
(90.0 |
) |
|
$ |
(80.0 |
) |
(1) |
Includes amortization related to share-based compensation that was capitalized in internal-use software and other assets in previous periods. |
(2) |
Consists entirely of amortization of intangible assets that were recorded as part of purchase accounting and contribute to revenue generation. The amortization of intangible assets related to acquisitions will recur in future periods until such intangible assets have been fully amortized. |
Reconciliation from GAAP to non-GAAP net loss guidance |
|||||||||||||||
|
Q1 FY 2023 |
|
FY 2023 |
||||||||||||
|
Low |
|
High |
|
Low |
|
High |
||||||||
|
|
|
|
|
|
|
|
||||||||
|
(in millions) |
||||||||||||||
Net loss |
$ |
(75.5 |
) |
|
$ |
(73.5 |
) |
|
$ |
(301.0 |
) |
|
$ |
(291.0 |
) |
Add: |
|
|
|
|
|
|
|
||||||||
Share-based compensation expense(1) |
|
48.0 |
|
|
|
48.0 |
|
|
|
201.0 |
|
|
|
201.0 |
|
Amortization of acquisition-related intangible assets(2) |
|
2.5 |
|
|
|
2.5 |
|
|
|
10.0 |
|
|
|
10.0 |
|
Non-GAAP net loss |
$ |
(25.0 |
) |
|
$ |
(23.0 |
) |
|
$ |
(90.0 |
) |
|
$ |
(80.0 |
) |
(1) |
Includes amortization related to share-based compensation that was capitalized in internal-use software and other assets in previous periods. |
(2) |
Consists entirely of amortization of intangible assets that were recorded as part of purchase accounting and contribute to revenue generation. The amortization of intangible assets related to acquisitions will recur in future periods until such intangible assets have been fully amortized. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220315006072/en/
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FAQ
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