☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Israel (State or other jurisdiction of incorporation or organization) | Not Applicable (I.R.S. Employer Identification No.) |
16 Madison Square West 7th Floor New York, NY (Address of principal executive offices) | 10010 (Zip code) |
212-206-7633 (Registrant’s telephone number, including area code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Ordinary shares, no par value | TBLA | The Nasdaq Global Market | ||
Warrants to purchase | TBLAW | The Nasdaq Global Market |
Large accelerated filer | ☐ | Accelerated filer | ☒ | |
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |
Emerging growth company | ☐ |
Page No. | ||||
PART I. | 4 | |||
Item 1. | 4 | |||
Item 2. | ||||
Item 3. | ||||
Item 4. | ||||
PART II. | ||||
Item 1. | ||||
Item 1A. | ||||
Item 2. | ||||
Item 3. | ||||
Item 4. | ||||
Item 5. | ||||
Item 6. | ||||
Item 1. | |
June 30, | December 31, | |||||||
2023 | 2022 | |||||||
Unaudited | ||||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 204,595 | $ | 165,893 | ||||
Short-term investments | 42,256 | 96,914 | ||||||
Restricted deposits | 1,170 | 750 | ||||||
Trade receivables (net of allowance for credit losses of $9,685 and $6,748 as of June 30, 2023 and December 31, 2022, respectively) | 217,437 | 256,708 | ||||||
Prepaid expenses and other current assets | 70,817 | 73,643 | ||||||
Total current assets | 536,275 | 593,908 | ||||||
NON-CURRENT ASSETS | ||||||||
Long-term prepaid expenses | 40,230 | 42,945 | ||||||
Commercial agreement asset | 289,451 | — | ||||||
Restricted deposits | 3,974 | 4,059 | ||||||
Deferred tax assets, net | 3,121 | 3,821 | ||||||
Operating lease right of use assets | 64,364 | 66,846 | ||||||
Property and equipment, net | 71,079 | 73,019 | ||||||
Intangible assets, net | 157,215 | 189,156 | ||||||
Goodwill | 555,931 | 555,869 | ||||||
Total non-current assets | 1,185,365 | 935,715 | ||||||
Total assets | $ | 1,721,640 | $ | 1,529,623 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Trade payables | $ | 222,232 | $ | 247,504 | ||||
Short-term operating lease liabilities | 16,231 | 14,753 | ||||||
Accrued expenses and other current liabilities | 105,234 | 102,965 | ||||||
Current maturities of long-term loan | 3,000 | 3,000 | ||||||
Total current liabilities | 346,697 | 368,222 | ||||||
LONG-TERM LIABILITIES | ||||||||
Long-term loan, net of current maturities | 192,307 | 223,049 | ||||||
Long-term operating lease liabilities | 54,583 | 57,928 | ||||||
Warrants liability | 5,782 | 6,756 | ||||||
Deferred tax liabilities, net | 26,938 | 34,133 | ||||||
Other long-term liabilities | 5,000 | 5,000 | ||||||
Total long-term liabilities | 284,610 | 326,866 | ||||||
COMMITMENTS AND CONTINGENCIES (Note 11) | ||||||||
SHAREHOLDERS’ EQUITY | ||||||||
Ordinary shares with no par value- Authorized: 700,000,000 as of June 30, 2023 and December 31, 2022; 300,637,035 and 254,133,863 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively. | — | — | ||||||
Non-voting Ordinary shares with no par value- Authorized: 46,000,000 as of June 30, 2023 and December 31, 2022; 45,198,702 and 0 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively. | — | — | ||||||
Treasury Ordinary shares, at cost - 1,442,000 and 0 Ordinary shares as of June 30, 2023 and December 31, 2022, respectively | (4,358 | ) | — | |||||
Additional paid-in capital | 1,226,572 | 903,789 | ||||||
Accumulated other comprehensive loss | (834 | ) | (834 | ) | ||||
Accumulated deficit | (131,047 | ) | (68,420 | ) | ||||
Total shareholders’ equity | 1,090,333 | 834,535 | ||||||
Total liabilities and shareholders’ equity | $ | 1,721,640 | $ | 1,529,623 |
March 31, | December 31, | |||||||
2024 | 2023 | |||||||
Unaudited | ||||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 178,534 | $ | 176,108 | ||||
Short-term investments | 2,485 | 5,725 | ||||||
Restricted deposits | 1,270 | 1,407 | ||||||
Trade receivables (net of allowance for credit losses of $9,412 and $10,207 as of March 31, 2024 and December 31, 2023, respectively) (1) | 284,239 | 306,307 | ||||||
Prepaid expenses and other current assets | 77,485 | 69,865 | ||||||
Total current assets | 544,013 | 559,412 | ||||||
NON-CURRENT ASSETS | ||||||||
Long-term prepaid expenses | 27,351 | 39,602 | ||||||
Commercial agreement asset | 289,451 | 289,451 | ||||||
Restricted deposits | 4,216 | 4,247 | ||||||
Operating lease right of use assets | 57,305 | 61,746 | ||||||
Property and equipment, net | 72,587 | 72,155 | ||||||
Intangible assets, net | 109,323 | 125,258 | ||||||
Goodwill | 555,931 | 555,931 | ||||||
Total non-current assets | 1,116,164 | 1,148,390 | ||||||
Total assets | $ | 1,660,177 | $ | 1,707,802 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Trade payables (2) | $ | 279,373 | $ | 282,012 | ||||
Short-term operating lease liabilities | 19,141 | 20,264 | ||||||
Accrued expenses and other current liabilities | 118,176 | 118,689 | ||||||
Current maturities of long-term loan | — | 3,000 | ||||||
Total current liabilities | 416,690 | 423,965 | ||||||
LONG-TERM LIABILITIES | ||||||||
Long-term loan, net of current maturities | 145,455 | 142,164 | ||||||
Long-term operating lease liabilities | 44,992 | 49,450 | ||||||
Warrants liability | 6,168 | 6,129 | ||||||
Deferred tax liabilities, net | 11,130 | 14,815 | ||||||
Other long-term liabilities | 14,751 | 14,217 | ||||||
Total long-term liabilities | 222,496 | 226,775 | ||||||
COMMITMENTS AND CONTINGENCIES (Note 11) | ||||||||
SHAREHOLDERS’ EQUITY | ||||||||
Ordinary shares with no par value- Authorized: 700,000,000 as of March 31, 2024 and December 31, 2023; 293,413,305 and 295,670,620 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively | — | — | ||||||
Non-voting Ordinary shares with no par value- Authorized: 46,000,000 as of March 31, 2024 and December 31, 2023; 45,198,702 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively | — | — | ||||||
Treasury Ordinary shares, at cost - 21,463,642 and 15,240,471 shares as of March 31, 2024 and December 31, 2023, respectively | (83,271 | ) | (55,513 | ) | ||||
Additional paid-in capital | 1,280,715 | 1,262,093 | ||||||
Accumulated other comprehensive income | 165 | 942 | ||||||
Accumulated deficit | (176,618 | ) | (150,460 | ) | ||||
Total shareholders’ equity | 1,020,991 | 1,057,062 | ||||||
Total liabilities and shareholders’ equity | $ | 1,660,177 | $ | 1,707,802 |
Three months ended March 31, | ||||||||
2024 | 2023 | |||||||
Unaudited | ||||||||
Revenues (1) | $ | 414,008 | $ | 327,686 | ||||
Cost of revenues: | ||||||||
Traffic acquisition cost (2) | 275,120 | 211,946 | ||||||
Other cost of revenues | 29,935 | 26,148 | ||||||
Total cost of revenues | 305,055 | 238,094 | ||||||
Gross profit | 108,953 | 89,592 | ||||||
Operating expenses: | ||||||||
Research and development | 36,249 | 31,985 | ||||||
Sales and marketing | 67,608 | 60,569 | ||||||
General and administrative | 23,329 | 25,836 | ||||||
Total operating expenses | 127,186 | 118,390 | ||||||
Operating loss | (18,233 | ) | (28,798 | ) | ||||
Finance expenses, net | (3,638 | ) | (3,154 | ) | ||||
Loss before income taxes | (21,871 | ) | (31,952 | ) | ||||
Income tax benefit (expenses) | (4,287 | ) | 639 | |||||
Net loss | $ | (26,158 | ) | $ | (31,313 | ) | ||
Net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, basic and diluted | $ | (0.08 | ) | $ | (0.09 | ) | ||
Weighted-average shares used in computing net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, basic and diluted | 345,502,643 | 333,424,276 |
Three months ended March 31, | ||||||||
2024 | 2023 | |||||||
Unaudited | ||||||||
Net loss | $ | (26,158 | ) | $ | (31,313 | ) | ||
Other comprehensive loss: | ||||||||
Unrealized gains (losses) on available-for-sale marketable securities, net | (1 | ) | 327 | |||||
Unrealized losses on derivative instruments, net | (776 | ) | (656 | ) | ||||
Other comprehensive loss | (777 | ) | (329 | ) | ||||
Comprehensive loss | $ | (26,935 | ) | $ | (31,642 | ) |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Unaudited | ||||||||||||||||
Revenues | $ | 332,004 | $ | 342,695 | $ | 659,690 | $ | 697,421 | ||||||||
Cost of revenues: | ||||||||||||||||
Traffic acquisition cost | 208,870 | 199,486 | 420,816 | 415,984 | ||||||||||||
Other cost of revenues | 26,077 | 26,848 | 52,225 | 53,046 | ||||||||||||
Total cost of revenues | 234,947 | 226,334 | 473,041 | 469,030 | ||||||||||||
Gross profit | 97,057 | 116,361 | 186,649 | 228,391 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 34,001 | 34,079 | 65,986 | 64,491 | ||||||||||||
Sales and marketing | 61,198 | 66,405 | 121,767 | 127,773 | ||||||||||||
General and administrative | 26,858 | 25,428 | 52,694 | 53,377 | ||||||||||||
Total operating expenses | 122,057 | 125,912 | 240,447 | 245,641 | ||||||||||||
Operating loss | (25,000 | ) | (9,551 | ) | (53,798 | ) | (17,250 | ) | ||||||||
Finance income (expenses), net | (3,827 | ) | 4,764 | (6,981 | ) | 15,959 | ||||||||||
Loss before income taxes benefit (expenses) | (28,827 | ) | (4,787 | ) | (60,779 | ) | (1,291 | ) | ||||||||
Income tax benefit (expenses) | (2,487 | ) | (234 | ) | (1,848 | ) | 158 | |||||||||
Net loss | $ | (31,314 | ) | $ | (5,021 | ) | $ | (62,627 | ) | $ | (1,133 | ) | ||||
Net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, basic and diluted | $ | (0.09 | ) | $ | (0.02 | ) | $ | (0.18 | ) | $ | (0.00 | ) |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Unaudited | ||||||||||||||||
Net loss | $ | (31,314 | ) | $ | (5,021 | ) | $ | (62,627 | ) | $ | (1,133 | ) | ||||
Other comprehensive income (loss): | ||||||||||||||||
Unrealized gains (losses) on available-for-sale marketable securities | 130 | (259 | ) | 457 | (259 | ) | ||||||||||
Unrealized gains (losses) on derivative instruments, net | 199 | (3,294 | ) | (457 | ) | (3,524 | ) | |||||||||
Other comprehensive income (loss) | 329 | (3,553 | ) | — | (3,783 | ) | ||||||||||
Comprehensive loss | $ | (30,985 | ) | $ | (8,574 | ) | $ | (62,627 | ) | $ | (4,916 | ) |
Non-voting Ordinary shares | Ordinary shares | |||||||||||||||||||||||||||||||||||
Number | Amount | Number | Amount | Treasury Ordinary shares | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive loss | Total shareholders’ equity | ||||||||||||||||||||||||||||
Balance as of March 31, 2023 (unaudited) | 45,198,702 | $ | — | 297,822,375 | $ | — | $ | — | $ | 1,209,559 | $ | (99,733 | ) | $ | (1,163 | ) | $ | 1,108,663 | ||||||||||||||||||
Share-based compensation expenses | — | — | — | — | — | 17,215 | — | — | 17,215 | |||||||||||||||||||||||||||
Repurchase of Ordinary Shares | — | — | (1,442,000 | ) | — | (4,358 | ) | — | — | — | (4,358 | ) | ||||||||||||||||||||||||
Exercise of options and vested RSUs | — | — | 4,256,660 | — | — | 915 | — | — | 915 | |||||||||||||||||||||||||||
Payments of tax withholding for share-based compensation | — | — | — | — | — | (1,117 | ) | — | — | (1,117 | ) | |||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | 329 | 329 | |||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (31,314 | ) | — | (31,314 | ) | |||||||||||||||||||||||||
Balance as of June 30, 2023 (unaudited) | 45,198,702 | $ | — | 300,637,035 | $ | — | $ | (4,358 | ) | $ | 1,226,572 | $ | (131,047 | ) | $ | (834 | ) | $ | 1,090,333 |
Ordinary shares | ||||||||||||||||||||||||
Number | Amount | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive loss | Total shareholders’ equity | |||||||||||||||||||
Balance as of March 31, 2022 (unaudited) | 238,816,867 | $ | — | $ | 846,701 | $ | (52,557 | ) | $ | (230 | ) | $ | 793,914 | |||||||||||
Share-based compensation expenses | — | — | 20,935 | — | — | 20,935 | ||||||||||||||||||
Exercise of options and vested RSUs | 1,863,041 | — | 1,905 | — | — | 1,905 | ||||||||||||||||||
Payments of tax withholding for share-based compensation | — | — | (340 | ) | — | — | (340 | ) | ||||||||||||||||
Other comprehensive loss | — | — | — | — | (3,553 | ) | (3,553 | ) | ||||||||||||||||
Net loss | — | — | — | (5,021 | ) | — | (5,021 | ) | ||||||||||||||||
Balance as of June 30, 2022 (unaudited) | 240,679,908 | $ | — | $ | 869,201 | $ | (57,578 | ) | $ | (3,783 | ) | $ | 807,840 |
Non-voting Ordinary shares | Ordinary shares | |||||||||||||||||||||||||||||||||||
Number | Amount | Number | Amount | Treasury Ordinary shares | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive income (loss) | Total shareholders’ equity | ||||||||||||||||||||||||||||
Balance as of January 1, 2024 | 45,198,702 | $ | — | 295,670,620 | $ | — | $ | (55,513 | ) | $ | 1,262,093 | $ | (150,460 | ) | $ | 942 | $ | 1,057,062 | ||||||||||||||||||
Share-based compensation expenses | — | — | — | — | — | 17,007 | — | — | 17,007 | |||||||||||||||||||||||||||
Repurchase of Ordinary shares | — | — | (6,223,171 | ) | — | (27,758 | ) | — | — | — | (27,758 | ) | ||||||||||||||||||||||||
Exercise of options and vested RSUs | — | — | 3,384,456 | — | — | 2,324 | — | — | 2,324 | |||||||||||||||||||||||||||
Connexity issuance of Holdback | — | — | 581,400 | — | — | — | — | — | — | |||||||||||||||||||||||||||
Payments of tax withholding for share-based compensation | — | — | — | — | — | (709 | ) | — | — | (709 | ) | |||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | — | (777 | ) | (777 | ) | |||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (26,158 | ) | — | (26,158 | ) | |||||||||||||||||||||||||
Balance as of March 31, 2024 (unaudited) | 45,198,702 | $ | — | 293,413,305 | $ | — | $ | (83,271 | ) | $ | 1,280,715 | $ | (176,618 | ) | $ | 165 | $ | 1,020,991 |
Non-voting Ordinary shares | Ordinary shares | |||||||||||||||||||||||||||||||||||
Number | Amount | Number | Amount | Treasury Ordinary shares | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive loss | Total shareholders’ equity | ||||||||||||||||||||||||||||
Balance as of January 1, 2023 | — | $ | — | 254,133,863 | $ | — | $ | — | $ | 903,789 | $ | (68,420 | ) | $ | (834 | ) | $ | 834,535 | ||||||||||||||||||
Share-based compensation expenses | — | — | — | — | — | 33,949 | — | — | 33,949 | |||||||||||||||||||||||||||
Repurchase of Ordinary Shares | — | — | (1,442,000 | ) | — | (4,358 | ) | — | — | — | (4,358 | ) | ||||||||||||||||||||||||
Exercise of options and vested RSUs | — | — | 7,838,081 | — | — | 2,679 | — | — | 2,679 | |||||||||||||||||||||||||||
Issuance of Ordinary shares and Non-voting Ordinary shares related to Commercial agreement | 45,198,702 | — | 39,525,691 | — | — | 288,063 | — | — | 288,063 | |||||||||||||||||||||||||||
Payments of tax withholding for share-based compensation | — | — | 581,400 | — | — | (1,908 | ) | — | — | (1,908 | ) | |||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (62,627 | ) | — | (62,627 | ) | |||||||||||||||||||||||||
Balance as of June 30, 2023 (unaudited) | 45,198,702 | $ | — | 300,637,035 | $ | — | $ | (4,358 | ) | $ | 1,226,572 | $ | (131,047 | ) | $ | (834 | ) | $ | 1,090,333 |
Ordinary shares | Non-voting Ordinary shares | Ordinary shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number | Amount | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive loss | Total shareholders’ equity | Number | Amount | Number | Amount | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive loss | Total shareholders’ equity | |||||||||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2022 | 234,031,749 | $ | — | $ | 824,016 | $ | (56,445 | ) | $ | — | $ | 767,571 | ||||||||||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2023 | — | $ | — | 254,133,863 | $ | — | $ | 903,789 | $ | (68,420 | ) | $ | (834 | ) | $ | 834,535 | ||||||||||||||||||||||||||||||||||||||||
Share-based compensation expenses | — | — | 41,281 | — | — | 41,281 | — | — | — | — | 16,734 | — | — | 16,734 | ||||||||||||||||||||||||||||||||||||||||||
Exercise of options and vested RSUs | 6,648,159 | — | 6,089 | — | — | 6,089 | — | — | 3,581,421 | — | 1,764 | — | — | 1,764 | ||||||||||||||||||||||||||||||||||||||||||
Connexity issuance of Holdback | — | — | 581,400 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Ordinary shares and Non-voting Ordinary shares related to Commercial agreement | 45,198,702 | — | 39,525,691 | — | 288,063 | — | — | 288,063 | ||||||||||||||||||||||||||||||||||||||||||||||||
Payments of tax withholding for share-based compensation | — | — | (2,185 | ) | — | — | (2,185 | ) | — | — | — | — | (791 | ) | — | — | (791 | ) | ||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (3,783 | ) | (3,783 | ) | — | — | — | — | — | — | (329 | ) | (329 | ) | ||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | (1,133 | ) | — | (1,133 | ) | — | — | — | — | — | (31,313 | ) | — | (31,313 | ) | ||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2022 (unaudited) | 240,679,908 | $ | — | $ | 869,201 | $ | (57,578 | ) | $ | (3,783 | ) | $ | 807,840 | |||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2023 (unaudited) | 45,198,702 | $ | — | 297,822,375 | $ | — | $ | 1,209,559 | $ | (99,733 | ) | $ | (1,163 | ) | $ | 1,108,663 |
Six months ended June 30, | Three months ended March 31, | |||||||||||||||
2023 | 2022 | 2024 | 2023 | |||||||||||||
Unaudited | Unaudited | |||||||||||||||
Cash flows from operating activities | ||||||||||||||||
Net loss | $ | (62,627 | ) | $ | (1,133 | ) | $ | (26,158 | ) | $ | (31,313 | ) | ||||
Adjustments to reconcile net loss to net cash flows provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 45,393 | 45,489 | 25,321 | 22,601 | ||||||||||||
Share-based compensation expenses | 32,617 | 40,261 | 16,401 | 16,082 | ||||||||||||
Net loss from financing expenses | 236 | 4,316 | ||||||||||||||
Net gain from financing expenses | (408 | ) | (328 | ) | ||||||||||||
Revaluation of the Warrants liability | (974 | ) | (26,000 | ) | 39 | (1,676 | ) | |||||||||
Amortization of loan and credit facility issuance costs | 891 | 715 | 354 | 500 | ||||||||||||
Amortization of premium and accretion of discount on short-term investments, net | (530 | ) | (137 | ) | 142 | (281 | ) | |||||||||
Change in operating assets and liabilities: | ||||||||||||||||
Decrease in trade receivables, net | 39,271 | 45,616 | ||||||||||||||
Decrease (increase) in prepaid expenses and other current assets and long-term prepaid expenses | 8,642 | (6,350 | ) | |||||||||||||
Decrease in trade payables | (29,730 | ) | (52,525 | ) | ||||||||||||
Decrease in trade receivables, net (1) | 22,068 | 44,362 | ||||||||||||||
Decrease in prepaid expenses and other current assets and long-term prepaid expenses | 9,199 | 721 | ||||||||||||||
Decrease in trade payables (2) | (8,262 | ) | (22,807 | ) | ||||||||||||
Decrease in accrued expenses and other current liabilities and other long-term liabilities | 1,812 | (22,946 | ) | (1,476 | ) | (13,439 | ) | |||||||||
Decrease in deferred taxes, net | (6,494 | ) | (12,476 | ) | ||||||||||||
Increase (decrease) in deferred taxes, net | (3,685 | ) | 2,790 | |||||||||||||
Change in operating lease right of use assets | 8,075 | 7,639 | 4,453 | 4,151 | ||||||||||||
Change in operating lease liabilities | (7,460 | ) | (12,262 | ) | (5,593 | ) | (3,839 | ) | ||||||||
Net cash provided by operating activities | 29,122 | 10,207 | 32,395 | 17,524 | ||||||||||||
Cash flows from investing activities | ||||||||||||||||
Purchase of property and equipment, including capitalized internal-use software | (10,178 | ) | (16,252 | ) | (5,589 | ) | (6,350 | ) | ||||||||
Cash paid in connection with acquisitions, net of cash acquired | — | (620 | ) | |||||||||||||
Proceeds from (investments in) restricted deposits | (341 | ) | 10 | |||||||||||||
Proceeds from sales and maturities of short-term investments | 77,636 | — | ||||||||||||||
Purchase of short-term investments | (21,991 | ) | (74,855 | ) | ||||||||||||
Payments of cash in escrow for acquisition of a subsidiary | — | (2,100 | ) | |||||||||||||
Proceeds from business acquisition holdback liability | 719 | — | ||||||||||||||
Investments in restricted deposits | — | (280 | ) | |||||||||||||
Proceeds from maturities of short-term investments | 3,265 | 41,940 | ||||||||||||||
Net cash provided by (used in) investing activities | 45,126 | (93,817 | ) | (1,605 | ) | 35,310 | ||||||||||
Cash flows from financing activities | ||||||||||||||||
Issuance costs | (456 | ) | — | |||||||||||||
Exercise of options and vested RSUs | 2,456 | 6,032 | 1,809 | 1,335 | ||||||||||||
Payment of tax withholding for share-based compensation expenses | (1,908 | ) | (2,185 | ) | (709 | ) | (791 | ) | ||||||||
Repurchase of Ordinary shares | (4,358 | ) | — | (27,758 | ) | — | ||||||||||
Payments on account of repurchase of Ordinary shares | (1,658 | ) | — | |||||||||||||
Repayment of long-term loan | (31,500 | ) | (1,500 | ) | — | (750 | ) | |||||||||
Net cash provided by (used in) financing activities | (35,310 | ) | 2,347 | |||||||||||||
Net cash used in financing activities | (28,772 | ) | (206 | ) | ||||||||||||
Exchange rate differences on balances of cash and cash equivalents | (236 | ) | (4,316 | ) | 408 | 328 | ||||||||||
Increase (decrease) in cash and cash equivalents | 38,702 | (85,579 | ) | |||||||||||||
Increase in cash and cash equivalents | 2,426 | 52,956 | ||||||||||||||
Cash and cash equivalents - at the beginning of the period | 165,893 | 319,319 | 176,108 | 165,893 | ||||||||||||
Cash and cash equivalents - at end of the period | $ | 204,595 | $ | 233,740 | $ | 178,534 | $ | 218,849 |
Six months ended June 30, | Three months ended March 31, | |||||||||||||||
2023 | 2022 | 2024 | 2023 | |||||||||||||
Unaudited | Unaudited | |||||||||||||||
Supplemental disclosures of cash flow information: | Supplemental disclosures of cash flow information: | Supplemental disclosures of cash flow information: | ||||||||||||||
Cash paid during the year for: | ||||||||||||||||
Income taxes | $ | 6,833 | $ | 16,162 | $ | 3,243 | $ | 4,258 | ||||||||
Interest | $ | 9,767 | $ | 10,373 | $ | 3,610 | $ | 5,067 | ||||||||
Non-cash investing and financing activities: | ||||||||||||||||
Purchase of property and equipment, including capitalized internal-use software | $ | 1,705 | $ | 7,353 | $ | 4,262 | $ | 36 | ||||||||
Share-based compensation included in capitalized internal-use software | $ | 1,332 | $ | 1,020 | $ | 606 | $ | 652 | ||||||||
Creation of operating lease right-of-use assets | $ | 5,593 | $ | 3,107 | $ | 12 | $ | 5,045 |
NOTE 1:- | GENERAL |
a. | Taboola.com Ltd. (together with its subsidiaries, the “Company” or “Taboola”) was incorporated under the laws of the state of Israel on September 3, 2006. |
b. | In November 2022, the Company announced it entered into a 30-year exclusive commercial agreement (the “Commercial agreement”) with Yahoo Inc. and affiliated entities (“Yahoo”), under which Taboola will power native advertising across all of Yahoo’s digital properties, expanding the Company’s native advertising offering. In connection with this transaction, and following approval by the Company’s shareholders on December 30, 2022, the articles of association of the Company were amended and restated (the “Articles”) in their entirety to include a Non-voting Ordinary share class with an authorized share capital of 46,000,000. On January 17, 2023 (the “Transaction closing date”), the Company closed the transaction related agreements, including the issuance of 39,525,691 Ordinary |
NOTE 1:- | GENRAL (Cont.) |
NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES |
NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
NOTE 3:- | CASH AND CASH EQUIVALENTS |
June 30, | December 31, | |||||||||||||||
2023 | 2022 | March 31, | December 31, | |||||||||||||
Unaudited | 2024 | 2023 | ||||||||||||||
Unaudited | ||||||||||||||||
Cash | $ | 112,179 | $ | 142,127 | $ | 97,730 | $ | 99,811 | ||||||||
Money market accounts and funds | 88,911 | 22,583 | ||||||||||||||
Money market funds | 75,666 | 72,510 | ||||||||||||||
Time deposits | 3,505 | 1,183 | 5,138 | 3,787 | ||||||||||||
Total Cash and cash equivalents | $ | 204,595 | $ | 165,893 | $ | 178,534 | $ | 176,108 |
NOTE 4:- | FAIR VALUE MEASUREMENTS |
Fair value measurements as of | Fair value measurements as of | |||||||||||||||||||
Description | Fair Value Hierarchy | June 30, 2023 | December 31, 2022 | Fair Value Hierarchy | March 31, 2024 | December 31, 2023 | ||||||||||||||
Unaudited | Unaudited | |||||||||||||||||||
Assets: | ||||||||||||||||||||
Cash equivalents: | ||||||||||||||||||||
Money market accounts and funds | Level 1 | $ | 88,911 | $ | 22,583 | |||||||||||||||
Money market funds | Level 1 | $ | 75,666 | $ | 72,510 | |||||||||||||||
Short-term investments: | ||||||||||||||||||||
Corporate debt securities | Level 2 | $ | 23,099 | $ | 21,636 | Level 2 | $ | 1,493 | $ | 3,651 | ||||||||||
U.S. agency bonds | Level 2 | $ | 8,249 | $ | 20,491 | |||||||||||||||
Commercial paper | Level 2 | $ | 6,472 | $ | 8,565 | Level 2 | $ | 992 | $ | 2,074 | ||||||||||
U.S. government treasuries | Level 2 | $ | 4,436 | $ | 46,222 | |||||||||||||||
Derivative instruments asset: | ||||||||||||||||||||
Derivative instruments designated as cash flow hedging instruments | Level 2 | $ | 172 | $ | 948 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Warrants liability: | ||||||||||||||||||||
Public Warrants | Level 1 | $ | (2,740 | ) | $ | (2,856 | ) | Level 1 | $ | (4,082 | ) | $ | (4,253 | ) | ||||||
Private Warrants | Level 3 | $ | (3,042 | ) | $ | (3,900 | ) | Level 3 | $ | (2,086 | ) | $ | (1,876 | ) | ||||||
Derivative instruments liability: | ||||||||||||||||||||
Derivative instruments designated as cash flow hedging instruments | Level 2 | $ | (770 | ) | $ | (313 | ) |
NOTE 4:- | FAIR VALUE MEASUREMENTS (Cont.) |
Input | June 30, 2023 | December 31, 2022 | March 31, 2024 | December 31, 2023 | ||||||||||||
Risk-free interest rate | 4.39% - 4.66 | % | 4.08% - 4.18 | % | 4.44% - 4.70 | % | 4.04% - 4.28 | % | ||||||||
Expected term (years) | 2.26 - 3.00 | 2.75 - 3.50 | 1.50 - 2.25 | 1.75 - 2.50 | ||||||||||||
Expected volatility | 70.8% - 73.0 | % | 67.5% - 69.3 | % | 69.1 | % | 61.1% - 63.9 | % | ||||||||
Exercise price | $ | 11.50 | $ | 11.50 | $ | 11.50 | $ | 11.50 | ||||||||
Underlying share price | $ | 3.11 | $ | 3.08 | $ | 4.44 | $ | 4.33 |
● | The risk-free interest rate assumption was interpolated based on constant maturity U.S. Treasury rates over a term commensurate with the expected term of the Private Warrants. |
● | The expected term was based on the maturity of the Private Warrants of five years following June 29, 2021, the Business Combination date, |
● | The expected volatility is based on the Company’s share price volatility. For periods prior January 1, 2024, the expected share volatility assumption was based on the implied volatility from a set of comparable publicly-traded companies as determined based on size and |
Private | Public | Total | Private | Public | Total | |||||||||||||||||||
Input | Warrants | Warrants | Warrants | Warrants | Warrants | Warrants | ||||||||||||||||||
Fair value as of December 31, 2022 | $ | 3,900 | $ | 2,856 | $ | 6,756 | ||||||||||||||||||
Fair value as of December 31, 2023 | $ | 1,876 | $ | 4,253 | $ | 6,129 | ||||||||||||||||||
Change from private to public holdings | (21 | ) | 21 | — | ||||||||||||||||||||
Change in fair value | (858 | ) | (116 | ) | (974 | ) | 231 | (192 | ) | 39 | ||||||||||||||
Fair value as of June 30, 2023 (unaudited) | $ | 3,042 | $ | 2,740 | $ | 5,782 | ||||||||||||||||||
Fair value as of March 31, 2024 (unaudited) | $ | 2,086 | $ | 4,082 | $ | 6,168 |
NOTE 5:- | SHORT-TERM INVESTMENTS |
June 30, 2023 | March 31, 2024 | |||||||||||||||||||||||||||||||
Unaudited | Unaudited | |||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||||||
Corporate debt securities | $ | 23,130 | $ | 1 | $ | (32 | ) | $ | 23,099 | $ | 1,499 | $ | — | $ | (6 | ) | $ | 1,493 | ||||||||||||||
U.S. agency bonds | 8,260 | — | (11 | ) | 8,249 | |||||||||||||||||||||||||||
Commercial paper | 6,484 | — | (12 | ) | 6,472 | 993 | — | (1 | ) | 992 | ||||||||||||||||||||||
U.S. government treasuries | 4,446 | — | (10 | ) | 4,436 | |||||||||||||||||||||||||||
Total | $ | 42,320 | $ | 1 | $ | (65 | ) | $ | 42,256 | $ | 2,492 | $ | — | $ | (7 | ) | $ | 2,485 |
December 31, 2022 | December 31, 2023 | |||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||||||
U.S. government treasuries | $ | 46,452 | $ | — | $ | (230 | ) | $ | 46,222 | |||||||||||||||||||||||
Corporate debt securities | 21,762 | — | (126 | ) | 21,636 | $ | 3,654 | $ | — | $ | (3 | ) | $ | 3,651 | ||||||||||||||||||
U.S. agency bonds | 20,622 | — | (131 | ) | 20,491 | |||||||||||||||||||||||||||
Commercial paper | 8,599 | — | (34 | ) | 8,565 | 2,077 | — | (3 | ) | 2,074 | ||||||||||||||||||||||
Total | $ | 97,435 | $ | — | $ | (521 | ) | $ | 96,914 | $ | 5,731 | $ | — | $ | (6 | ) | $ | 5,725 |
NOTE 6:- | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES |
Reclassification of losses into loss from accumulated other comprehensive loss | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Unaudited | ||||||||||||||||
Cost of revenues | $ | 54 | $ | 142 | $ | 82 | $ | 145 | ||||||||
Research and development | 536 | 959 | 851 | 979 | ||||||||||||
Sales and marketing | 100 | 182 | 156 | 186 | ||||||||||||
General and administrative | 104 | 161 | 153 | 164 | ||||||||||||
Total losses recognized in the consolidated interim statements of loss | $ | 794 | $ | 1,444 | $ | 1,242 | $ | 1,474 |
NOTE 6:- | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Cont.) |
Three months ended March 31, | ||||||||
2024 | 2023 | |||||||
Unaudited | ||||||||
Cost of revenues | $ | 15 | $ | (28 | ) | |||
Research and development | 174 | (315 | ) | |||||
Sales and marketing | 43 | (56 | ) | |||||
General and administrative | 35 | (49 | ) | |||||
Total gains (losses) recognized in the consolidated statements of loss, net | $ | 267 | $ | (448 | ) |
Six months ended June 30, | ||||||||
2023 | 2022 | |||||||
Unaudited | ||||||||
Unrealized losses on derivative instruments at the beginning of the period | $ | (313 | ) | $ | — | |||
Changes in fair value of derivative instruments | (1,699 | ) | (4,998 | ) | ||||
Reclassification of losses recognized in the consolidated interim statements of loss from accumulated other comprehensive loss | 1,242 | 1,474 | ||||||
Unrealized losses on derivative instruments at the end of the period | $ | (770 | ) | $ | (3,524 | ) |
Three months ended March 31, | ||||||||
2024 | 2023 | |||||||
Unaudited | ||||||||
Unrealized gains (losses) on derivative instruments at the beginning of the period | $ | 948 | $ | (313 | ) | |||
Changes in fair value of derivative instruments | (509 | ) | (1,104 | ) | ||||
Reclassification of losses (gains) recognized in the consolidated interim statements of loss from accumulated other comprehensive income (loss) | (267 | ) | 448 | |||||
Unrealized gains (losses) on derivative instruments at the end of the period (unaudited) | $ | 172 | $ | (969 | ) |
NOTE 7:- | GOODWILL AND INTANGIBLE ASSETS, NET |
Carrying Amount | ||||
Balance as of December 31, 2022 | $ | 555,869 | ||
Purchase accounting adjustment | 62 | |||
Balance as of June 30, 2023 (unaudited) | $ | 555,931 |
NOTE 7:- | GOODWILL AND INTANGIBLE ASSETS, NET (Cont.) |
Gross Fair Value | Accumulated Amortization | Net Book Value | ||||||||||||||||||||||
Merchant / Network affiliate relationships | $ | 146,547 | $ | (59,704 | ) | $ | 86,843 | |||||||||||||||||
March 31, 2024 | Gross Fair Value | Accumulated Amortization | Net Book Value | |||||||||||||||||||||
Merchant/Network affiliate relationships | $ | 146,547 | $ | (84,129 | ) | $ | 62,418 | |||||||||||||||||
Technology | 74,193 | (37,789 | ) | 36,404 | 74,193 | (46,412 | ) | 27,781 | ||||||||||||||||
Publisher relationships | 42,933 | (19,678 | ) | 23,255 | 42,933 | (27,728 | ) | 15,205 | ||||||||||||||||
Tradenames | 24,097 | (14,715 | ) | 9,382 | 24,097 | (20,752 | ) | 3,345 | ||||||||||||||||
Customer relationships | 13,146 | (11,815 | ) | 1,331 | ||||||||||||||||||||
Total | $ | 300,916 | $ | (143,701 | ) | $ | 157,215 | |||||||||||||||||
Customer relationship | 13,146 | (12,572 | ) | 574 | ||||||||||||||||||||
Total (unaudited) | $ | 300,916 | $ | (191,593 | ) | $ | 109,323 |
Gross Fair Value | Accumulated Amortization | Net Book Value | ||||||||||||||||||||||
Merchant / Network affiliate relationships | $ | 146,547 | $ | (43,421 | ) | $ | 103,126 | |||||||||||||||||
December 31, 2023 | Gross Fair Value | Accumulated Amortization | Net Book Value | |||||||||||||||||||||
Merchant/Network affiliate relationships | $ | 146,547 | $ | (75,987 | ) | $ | 70,560 | |||||||||||||||||
Technology | 74,193 | (32,042 | ) | 42,151 | 74,193 | (43,535 | ) | 30,658 | ||||||||||||||||
Publisher relationships | 42,933 | (14,311 | ) | 28,622 | 42,933 | (25,044 | ) | 17,889 | ||||||||||||||||
Tradenames | 24,097 | (10,689 | ) | 13,408 | 24,097 | (18,739 | ) | 5,358 | ||||||||||||||||
Customer relationships | 13,156 | (11,307 | ) | 1,849 | 13,146 | (12,353 | ) | 793 | ||||||||||||||||
Total | $ | 300,926 | $ | (111,770 | ) | $ | 189,156 | $ | 300,916 | $ | (175,658 | ) | $ | 125,258 |
Year Ending December 31, | ||||||||
2023 (Remainder) | $ | 31,954 | ||||||
2024 | 60,519 | |||||||
2024 (Remainder) | $ | 44,583 | ||||||
2025 | 51,407 | 51,407 | ||||||
2026 | 13,244 | 13,244 | ||||||
2027 | 91 | 89 | ||||||
Total | $ | 157,215 | $ | 109,323 |
NOTE 8:- | FINANCING ARRANGEMENTS |
NOTE 8:- | FINANCING ARRANGEMENTS (Cont.) |
Amount | ||||
Year Ending December 31, | ||||
2023 (current maturities) | $ | 1,500 | ||
2024 | 3,000 | |||
2025 | 3,000 | |||
2026 | 3,000 | |||
2027 | 3,000 | |||
2028 | 189,985 | |||
Total | $ | 203,485 |
NOTE 8:- | FINANCING ARRANGEMENTS (Cont.) |
NOTE 9:- | SHAREHOLDERS’ EQUITY AND SHARE INCENTIVE PLANS |
NOTE 9:- | SHAREHOLDERS’ EQUITY AND SHARE INCENTIVE PLANS (Cont.) |
a. | In addition to the Buyback Program detailed above, the Company |
b. | The following is a summary of share option activity and related information for the |
Outstanding Share Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||||||
Balance as of January 1, 2023 | 35,488,179 | $ | 3.08 | 6.72 | $ | 40,516 | ||||||||||
Granted | — | — | — | — | ||||||||||||
Exercised | (2,096,400 | ) | 1.22 | — | 3,870 | |||||||||||
Forfeited | (406,596 | ) | 5.72 | — | — | |||||||||||
Balance as of June 30, 2023 (unaudited) | 32,985,183 | $ | 3.16 | 6.50 | $ | 37,082 | ||||||||||
Exercisable as of June 30, 2023 (unaudited) | 26,886,665 | $ | 2.45 | 6.20 | $ | 33,726 |
Outstanding Share Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||||||
Balance as of January 1, 2024 | 29,291,285 | $ | 3.35 | 5.27 | $ | 57,118 | ||||||||||
Exercised | (1,312,222 | ) | 1.81 | — | 3,260 | |||||||||||
Forfeited | (338,892 | ) | 2.77 | — | — | |||||||||||
Balance as of March 31, 2024 (unaudited) | 27,640,171 | $ | 3.43 | 5.26 | $ | 55,360 | ||||||||||
Exercisable as of March 31, 2024 (unaudited) | 23,742,117 | $ | 2.93 | 4.96 | $ | 51,989 |
NOTE 9:- | SHAREHOLDERS’ EQUITY AND SHARE INCENTIVE PLANS (Cont.) |
c. | The following is a summary of the RSU activity and related information for the |
Outstanding Restricted Shares Unit | Weighted Average Grant Date Fair Value | |||||||
Balance as of January 1, 2023 | 23,521,009 | $ | 6.60 | |||||
Granted | 11,785,624 | 3.53 | ||||||
Vested (*) | (5,741,681 | ) | 6.27 | |||||
Forfeited | (1,635,920 | ) | 6.10 | |||||
Balance as of June 30, 2023 (unaudited) | 27,929,032 | $ | 5.41 |
Outstanding Restricted Shares Unit | Weighted Average Grant Date Fair Value | |||||||
Balance as of January 1, 2024 | 23,479,308 | $ | 5.13 | |||||
Granted | 12,783,639 | 4.74 | ||||||
Vested (*) | (2,072,234 | ) | 5.48 | |||||
Forfeited | (388,211 | ) | 4.99 | |||||
Balance as of March 31, 2024 (unaudited) | 33,802,502 | $ | 4.96 |
Three months ended June 30, | Six months ended June 30, | Three months ended March 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2024 | 2023 | |||||||||||||||||||
Unaudited | Unaudited | |||||||||||||||||||||||
Cost of revenues | $ | 1,039 | $ | 851 | $ | 2,083 | $ | 1,554 | $ | 1,011 | $ | 1,044 | ||||||||||||
Research and development | 6,181 | 7,443 | 12,025 | 13,545 | 6,378 | 5,844 | ||||||||||||||||||
Sales and marketing | 4,401 | 7,397 | 8,686 | 12,697 | 4,323 | 4,285 | ||||||||||||||||||
General and administrative | 4,914 | 4,741 | 9,823 | 12,465 | 4,689 | 4,909 | ||||||||||||||||||
Total share-based compensation expense | $ | 16,535 | $ | 20,432 | $ | 32,617 | $ | 40,261 | $ | 16,401 | $ | 16,082 |
NOTE 10:- | INCOME TAXES |
NOTE 11:- | COMMITMENTS AND CONTINGENCIES |
In the ordinary course of business, the Company may be subject from time to time to various proceedings, lawsuits, disputes, or claims. The Company investigates these claims as they arise and records a provision, as necessary. Provisions are reviewed and adjusted to reflect the impact of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. Although claims are inherently unpredictable, the Company is currently not aware of any matters that, it believes would individually or taken together, have a material adverse effect on its business, financial position, results of operations, or cash flows. |
NOTE 12:- | RELATED PARTY |
NOTE 13:- | GEOGRAPHIC INFORMATION |
Three months ended June 30, | Six months ended June 30, | Three months ended March 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2024 | 2023 | |||||||||||||||||||
Unaudited | Unaudited | |||||||||||||||||||||||
Israel | $ | 48,970 | $ | 49,102 | $ | 106,597 | $ | 99,796 | $ | 31,465 | $ | 45,498 | ||||||||||||
United States | 125,803 | 129,531 | 238,707 | 264,217 | 193,362 | 114,775 | ||||||||||||||||||
Germany | 30,662 | 29,093 | 61,437 | 67,485 | 35,697 | 31,375 | ||||||||||||||||||
United Kingdom | 17,506 | 19,401 | 35,216 | 37,945 | 20,074 | 17,948 | ||||||||||||||||||
Rest of the world | 109,063 | 115,568 | 217,733 | 227,978 | 133,410 | 118,090 | ||||||||||||||||||
Total | $ | 332,004 | $ | 342,695 | $ | 659,690 | $ | 697,421 | $ | 414,008 | $ | 327,686 |
NOTE 14:- | NET LOSS PER SHARE ATTRIBUTABLE TO ORDINARY SHAREHOLDERS |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||
Ordinary shares | Non-voting Ordinary shares | Ordinary shares | Non-voting Ordinary shares | Ordinary shares | Non-voting Ordinary shares | Ordinary shares | Non-voting Ordinary shares | |||||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||||||||
Net loss attributable to Ordinary shareholders, basic and diluted | $ | (27,288 | ) | $ | (4,026 | ) | $ | (5,021 | ) | $ | — | $ | (55,138 | ) | $ | (7,489) | $ | (1,333 | ) | $ | — | |||||||||||
Denominator: | ||||||||||||||||||||||||||||||||
Weighted-average shares used in computing net loss per share attributable to Ordinary shareholders, basic | 306,386,357 | 45,198,702 | 250,777,915 | — | 301,537,937 | 40,953,520 | 249,095,931 | — | ||||||||||||||||||||||||
Weighted-average shares used in computing net loss per share attributable to Ordinary shareholders, diluted | 306,386,357 | 45,198,702 | 250,777,915 | — | 301,537,937 | 40,953,520 | 249,095,931 | — | ||||||||||||||||||||||||
Net loss per share attributable to Ordinary and non-voting Ordinary shareholders, basic | $ | (0.09 | ) | $ | (0.09 | ) | $ | (0.02 | ) | $ | — | $ | (0.18 | ) | $ | (0.18) | $ | (0.00 | ) | $ | — | |||||||||||
Net loss per share attributable to Ordinary and non-voting Ordinary shareholders, diluted | $ | (0.09 | ) | $ | (0.09 | ) | $ | (0.02 | ) | $ | — | $ | (0.18 | ) | $ | (0.18) | $ | (0.00 | ) | $ | — |
Three months ended March 31, | ||||||||||||||||
2024 | 2023 | |||||||||||||||
Ordinary shares | Non-voting Ordinary shares | Ordinary shares | Non-voting Ordinary shares | |||||||||||||
Unaudited | ||||||||||||||||
Numerator: | ||||||||||||||||
Net loss attributable to Ordinary shareholders, basic and diluted | $ | (22,736 | ) | $ | (3,422 | ) | $ | (27,870 | ) | $ | (3,443 | ) | ||||
Denominator: | ||||||||||||||||
Weighted-average shares used in computing net loss per share attributable to Ordinary shareholders, basic and diluted | 300,303,941 | 45,198,702 | 296,763,107 | 36,661,169 | ||||||||||||
Net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, basic and diluted | $ | (0.08 | ) | $ | (0.08 | ) | $ | (0.09 | ) | $ | (0.09 | ) |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | Three months ended March 31, | ||||||||||||||||||||
Unaudited | 2024 | 2023 | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||
Warrants | 12,349,990 | 12,349,990 | 12,349,990 | 12,349,990 | 12,349,990 | 12,349,990 | ||||||||||||||||||
RSUs | 26,949,979 | 21,964,961 | 26,949,979 | 21,320,295 | 26,734,790 | 28,550,688 | ||||||||||||||||||
Outstanding share options | 27,309,646 | 38,563,838 | 27,309,646 | 38,563,838 | 21,839,078 | 28,449,625 | ||||||||||||||||||
Issuable Ordinary Shares related to Business Combination under holdback arrangement | 1,744,192 | 3,681,030 | 1,744,192 | 3,681,030 | ||||||||||||||||||||
Issuable Ordinary shares related to Business Combination under holdback arrangement | 968,992 | 1,704,406 | ||||||||||||||||||||||
Total | 68,353,807 | 76,559,819 | 68,353,807 | 75,915,153 | 61,892,850 | 71,054,709 |
Item 2. |
(dollars in thousands, except per share data) | Three months ended June 30, | Six months ended June 30, | Three months ended March 31, | |||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2024 | 2023 | |||||||||||||||||||
Unaudited | Unaudited | |||||||||||||||||||||||
Revenues | $ | 332,004 | $ | 342,695 | $ | 659,690 | $ | 697,421 | $ | 414,008 | $ | 327,686 | ||||||||||||
Gross profit | $ | 97,057 | $ | 116,361 | $ | 186,649 | $ | 228,391 | $ | 108,953 | $ | 89,592 | ||||||||||||
Net loss | $ | (31,314 | ) | $ | (5,021 | ) | $ | (62,627 | ) | $ | (1,133 | ) | $ | (26,158 | ) | $ | (31,313 | ) | ||||||
EPS diluted (1) | $ | (0.09 | ) | $ | (0.02 | ) | $ | (0.18 | ) | $ | (0.00 | ) | $ | (0.08 | ) | $ | (0.09 | ) | ||||||
Ratio of net loss to gross profit | (32.3 | %) | (4.3 | %) | (33.6 | %) | (0.5 | %) | (24.0 | %) | (35.0 | %) | ||||||||||||
Cash flow provided by operating activities | $ | 11,598 | $ | 2,084 | $ | 29,122 | $ | 10,207 | $ | 32,395 | $ | 17,524 | ||||||||||||
Cash, cash equivalents, short-term deposits and investments | $ | 246,851 | $ | 308,473 | $ | 246,851 | $ | 308,473 | $ | 181,019 | $ | 274,431 | ||||||||||||
Non-GAAP Financial Data (2) | ||||||||||||||||||||||||
ex-TAC Gross Profit | $ | 123,134 | $ | 143,209 | $ | 238,874 | $ | 281,437 | $ | 138,888 | $ | 115,740 | ||||||||||||
Adjusted EBITDA | $ | 15,661 | $ | 34,168 | $ | 25,783 | $ | 69,024 | $ | 23,489 | $ | 10,122 | ||||||||||||
Non-GAAP Net Income (Loss) | $ | (1,406 | ) | $ | 15,794 | $ | (5,507 | ) | $ | 37,889 | $ | 3,832 | $ | (4,101 | ) | |||||||||
Ratio of Adjusted EBITDA to ex-TAC Gross Profit | 12.7 | % | 23.9 | % | 10.8 | % | 24.5 | % | 16.9 | % | 8.7 | % | ||||||||||||
Free Cash Flow | $ | 7,770 | $ | (7,266 | ) | $ | 18,944 | $ | (6,045 | ) | $ | 26,806 | $ | 11,174 |
(1) | The weighted-average shares used in the computation of the diluted EPS for the three months ended |
(2) | Refer to “Non-GAAP Financial Measures” below for an explanation and reconciliation to GAAP metrics. |
● | Traffic acquisition cost is a significant component of our cost of revenues but is not the only component; and |
● | ex-TAC Gross Profit is not comparable to our gross profit and by definition ex-TAC Gross Profit presented for any period will be higher than our gross profit for that period. |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Revenues | $ | 332,004 | $ | 342,695 | $ | 659,690 | $ | 697,421 | ||||||||
Traffic acquisition cost | 208,870 | 199,486 | 420,816 | 415,984 | ||||||||||||
Other cost of revenues | 26,077 | 26,848 | 52,225 | 53,046 | ||||||||||||
Gross profit | $ | 97,057 | $ | 116,361 | $ | 186,649 | $ | 228,391 | ||||||||
Add back: Other cost of revenues | 26,077 | 26,848 | 52,225 | 53,046 | ||||||||||||
ex-TAC Gross Profit | $ | 123,134 | $ | 143,209 | $ | 238,874 | $ | 281,437 |
Three months ended March 31, | ||||||||
2024 | 2023 | |||||||
(dollars in thousands) | ||||||||
Revenues | $ | 414,008 | $ | 327,686 | ||||
Traffic acquisition cost | 275,120 | 211,946 | ||||||
Other cost of revenues | 29,935 | 26,148 | ||||||
Gross profit | $ | 108,953 | $ | 89,592 | ||||
Add back: Other cost of revenues | 29,935 | 26,148 | ||||||
ex-TAC Gross Profit | $ | 138,888 | $ | 115,740 |
● | Although depreciation expense is a non-cash charge, the assets being depreciated may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; |
● | Adjusted EBITDA excludes share-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense for our business and an important part of our compensation strategy; |
● | Adjusted EBITDA does not reflect, to the extent applicable for a period presented: (1) changes in, or cash requirements for, our working capital needs; (2) interest expense, or the cash requirements necessary to service interest or if applicable principal payments on debt, which reduces cash available to us; or (3) tax payments that may represent a reduction in cash available to us; and |
● | The expenses and other items that we exclude in our calculation of Adjusted EBITDA may differ from the expenses and other items, if any, that other companies may exclude from Adjusted EBITDA when they report their operating results. |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Net loss | $ | (31,314 | ) | $ | (5,021 | ) | $ | (62,627 | ) | $ | (1,133 | ) | ||||
Adjusted to exclude the following: | | | | | ||||||||||||
Finance (income) expenses, net | 3,827 | (4,764 | ) | 6,981 | (15,959 | ) | ||||||||||
Income tax (benefit) expenses | 2,487 | 234 | 1,848 | (158 | ) | |||||||||||
Depreciation and amortization | 22,792 | 22,813 | 45,393 | 45,489 | ||||||||||||
Share-based compensation expenses | 13,890 | 17,640 | 27,417 | 34,679 | ||||||||||||
Holdback compensation expenses (1) | 2,645 | 2,792 | 5,200 | 5,582 | ||||||||||||
M&A and other costs (2) | 1,334 | 474 | 1,571 | 524 | ||||||||||||
Adjusted EBITDA | $ | 15,661 | $ | 34,168 | $ | 25,783 | $ | 69,024 |
Three months ended March 31, | ||||||||
2024 | 2023 | |||||||
(dollars in thousands) | ||||||||
Net loss | $ | (26,158 | ) | $ | (31,313 | ) | ||
Adjusted to exclude the following: | | | ||||||
Finance expenses, net | 3,638 | 3,154 | ||||||
Income tax expenses (benefit) | 4,287 | (639 | ) | |||||
Depreciation and amortization | 25,321 | 22,601 | ||||||
Share-based compensation expenses | 13,756 | 13,527 | ||||||
Holdback compensation expenses (1) | 2,645 | 2,555 | ||||||
Other costs (2) | — | 237 | ||||||
Adjusted EBITDA | $ | 23,489 | $ | 10,122 |
(1) | Represents share-based compensation due to holdback of |
(2) |
Three months ended June 30, | Six months ended June 30, | Three months ended March 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2024 | 2023 | |||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | |||||||||||||||||||||||
Gross profit | $ | 97,057 | $ | 116,361 | $ | 186,649 | $ | 228,391 | $ | 108,953 | $ | 89,592 | ||||||||||||
Net loss | $ | (31,314 | ) | $ | (5,021 | ) | $ | (62,627 | ) | $ | (1,133 | ) | $ | (26,158 | ) | $ | (31,313 | ) | ||||||
Ratio of net loss to gross profit | (32.3 | %) | (4.3 | %) | (33.6 | %) | (0.5 | %) | (24.0 | %) | (35.0 | %) | ||||||||||||
ex-TAC Gross Profit | $ | 123,134 | $ | 143,209 | $ | 238,874 | $ | 281,437 | $ | 138,888 | $ | 115,740 | ||||||||||||
Adjusted EBITDA | $ | 15,661 | $ | 34,168 | $ | 25,783 | $ | 69,024 | $ | 23,489 | $ | 10,122 | ||||||||||||
Ratio of Adjusted EBITDA margin to ex-TAC Gross Profit | 12.7 | % | 23.9 | % | 10.8 | % | 24.5 | % | 16.9 | % | 8.7 | % |
● | Non-GAAP Net Income (Loss) excludes share-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense for our business and an important part of our compensation strategy; |
● | Non-GAAP Net Income (Loss) will generally be more favorable than our net income (loss) for the same period due to the nature of the items being excluded from its calculation; and |
● | Non-GAAP Net Income (Loss) is a performance measure and should not be used as a measure of liquidity. |
Three months ended June 30, | Six months ended June 30, | Three months ended March 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2024 | 2023 | |||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | |||||||||||||||||||||||
Net loss | $ | (31,314 | ) | $ | (5,021 | ) | $ | (62,627 | ) | $ | (1,133 | ) | $ | (26,158 | ) | $ | (31,313 | ) | ||||||
Amortization of acquired intangibles | 15,962 | 15,828 | 31,931 | 31,608 | 15,935 | 15,969 | ||||||||||||||||||
Share-based compensation expenses | 13,890 | 17,640 | 27,417 | 34,679 | 13,756 | 13,527 | ||||||||||||||||||
Holdback compensation expenses (1) | 2,645 | 2,792 | 5,200 | 5,582 | 2,645 | 2,555 | ||||||||||||||||||
M&A and other costs (2) | 1,334 | 474 | 1,571 | 524 | ||||||||||||||||||||
Other costs (2) | — | 237 | ||||||||||||||||||||||
Revaluation of Warrants | 702 | (11,958 | ) | (974 | ) | (26,000 | ) | 39 | (1,676 | ) | ||||||||||||||
Foreign currency exchange rate losses (gains) (3) | (663 | ) | 2,490 | (234 | ) | 2,706 | ||||||||||||||||||
Foreign currency exchange rate losses (3) | 1,041 | 429 | ||||||||||||||||||||||
Income tax effects | (3,962 | ) | (6,451 | ) | (7,791 | ) | (10,077 | ) | (3,426 | ) | (3,829 | ) | ||||||||||||
Non-GAAP Net Income (Loss) | $ | (1,406 | ) | $ | 15,794 | $ | (5,507 | ) | $ | 37,889 | $ | 3,832 | $ | (4,101 | ) |
(1) | Represents share-based compensation due to holdback of |
(2) |
(3) | Represents |
● | It should not be inferred that the entire Free Cash Flow amount is available for discretionary expenditures. For example, cash is still required to satisfy other working capital needs, including short-term investment policy, restricted cash, repayment of loan and intangible assets; |
● | Free Cash Flow has limitations as an analytical tool, and it should not be considered in isolation or as a substitute for analysis of other GAAP financial measures, such as net cash provided by operating activities; and |
● | This metric does not reflect our future contractual commitments. |
Three months ended June 30, | Six months ended June 30, | Three months ended March 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2024 | 2023 | |||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | |||||||||||||||||||||||
Net cash provided by operating activities | $ | 11,598 | $ | 2,084 | $ | 29,122 | $ | 10,207 | $ | 32,395 | $ | 17,524 | ||||||||||||
Purchases of property and equipment, including capitalized internal-use software | (3,828 | ) | (9,350 | ) | (10,178 | ) | (16,252 | ) | (5,589 | ) | (6,350 | ) | ||||||||||||
Free Cash Flow | $ | 7,770 | $ | (7,266 | ) | $ | 18,944 | $ | (6,045 | ) | $ | 26,806 | $ | 11,174 |
Three months ended June 30, | ||||||||||||||||
(dollars in thousands) | Three months ended March 31, | |||||||||||||||
2023 | 2022 | 2024 | 2023 | |||||||||||||
Unaudited | ||||||||||||||||
Revenues | $ | 332,004 | $ | 342,695 | $ | 414,008 | $ | 327,686 | ||||||||
Cost of revenues: | ||||||||||||||||
Traffic acquisition cost | 208,870 | 199,486 | 275,120 | 211,946 | ||||||||||||
Other cost of revenues | 26,077 | 26,848 | 29,935 | 26,148 | ||||||||||||
Total cost of revenues | 234,947 | 226,334 | 305,055 | 238,094 | ||||||||||||
Gross profit | 97,057 | 116,361 | 108,953 | 89,592 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 34,001 | 34,079 | 36,249 | 31,985 | ||||||||||||
Sales and marketing | 61,198 | 66,405 | 67,608 | 60,569 | ||||||||||||
General and administrative | 26,858 | 25,428 | 23,329 | 25,836 | ||||||||||||
Total operating expenses | 122,057 | 125,912 | 127,186 | 118,390 | ||||||||||||
Operating loss | (25,000 | ) | (9,551 | ) | (18,233 | ) | (28,798 | ) | ||||||||
Finance income (expenses), net | (3,827 | ) | 4,764 | |||||||||||||
Finance expenses, net | (3,638 | ) | (3,154 | ) | ||||||||||||
Loss before income taxes | (28,827 | ) | (4,787 | ) | (21,871 | ) | (31,952 | ) | ||||||||
Income tax expenses | (2,487 | ) | (234 | ) | ||||||||||||
Income tax benefit (expenses) | (4,287 | ) | 639 | |||||||||||||
Net loss | $ | (31,314 | ) | $ | (5,021 | ) | $ | (26,158 | ) | $ | (31,313 | ) |
Six months ended June 30, | ||||||||
2023 | 2022 | |||||||
Revenues | $ | 659,690 | $ | 697,421 | ||||
Cost of revenues: | ||||||||
Traffic acquisition cost | 420,816 | 415,984 | ||||||
Other cost of revenues | 52,225 | 53,046 | ||||||
Total cost of revenues | 473,041 | 469,030 | ||||||
Gross profit | 186,649 | 228,391 | ||||||
Operating expenses: | ||||||||
Research and development | 65,986 | 64,491 | ||||||
Sales and marketing | 121,767 | 127,773 | ||||||
General and administrative | 52,694 | 53,377 | ||||||
Total operating expenses | 240,447 | 245,641 | ||||||
Operating loss | (53,798 | ) | (17,250 | ) | ||||
Finance income (expenses), net | (6,981 | ) | 15,959 | |||||
Loss before income taxes benefit (expenses) | (60,779 | ) | (1,291 | ) | ||||
Income tax benefit (expenses) | (1,848 | ) | 158 | |||||
Net loss | $ | (62,627 | ) | $ | (1,133 | ) |
Six months ended June 30, | Three months ended March 31, | |||||||||||||||
2023 | 2022 | 2024 | 2023 | |||||||||||||
Unaudited | Unaudited | |||||||||||||||
Cash Flow Data: | ||||||||||||||||
Net cash provided by operating activities | $ | 29,122 | $ | 10,207 | $ | 32,395 | $ | 17,524 | ||||||||
Net cash provided by (used in) investing activities | 45,126 | (93,817 | ) | (1,605 | ) | 35,310 | ||||||||||
Net cash provided by (used in) financing activities | (35,310 | ) | 2,347 | |||||||||||||
Net cash used in financing activities | (28,772 | ) | (206 | ) | ||||||||||||
Exchange rate differences on balances of cash and cash equivalents | (236 | ) | (4,316 | ) | 408 | 328 | ||||||||||
Increase (decrease) in cash and cash equivalents | $ | 38,702 | $ | (85,579 | ) | |||||||||||
Increase in cash and cash equivalents | $ | 2,426 | $ | 52,956 |
Contractual Obligations by Period | Contractual Obligations by Period | |||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2024 | 2025 | 2026 | 2027 | Thereafter | 2024 | 2025 | 2026 | 2027 | 2028 | Thereafter | |||||||||||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Obligations | $ | 1,500 | $ | 3,000 | $ | 3,000 | $ | 3,000 | $ | 3,000 | $ | 189,985 | $ | — | $ | — | $ | — | $ | — | $ | 152,735 | $ | — | ||||||||||||||||||||||||
Operating Leases | 8,469 | 19,539 | 16,173 | 13,240 | 9,589 | 13,692 | 16,770 | 17,672 | 14,320 | 10,087 | 5,607 | 8,264 | ||||||||||||||||||||||||||||||||||||
Non-cancellable purchase obligations | 17,217 | 6,818 | 511 | 99 | — | — | 24,814 | 3,465 | 2,025 | 286 | — | — | ||||||||||||||||||||||||||||||||||||
Total Contractual Obligations | $ | 27,186 | $ | 29,357 | $ | 19,684 | $ | 16,339 | $ | 12,589 | $ | 203,677 | $ | 41,584 | $ | 21,137 | $ | 16,345 | $ | 10,373 | $ | 158,342 | $ | 8,264 |
(1) | Due to our voluntary prepayments, we have no remaining obligations to make quarterly amortization payments under our long-term loan. |
(2) | Represents future minimum lease commitments under non-cancellable operating lease agreements. |
Primarily represents non-cancelable amounts for contractual commitments in respect of software and information technology. |
| Operating loss impact Six months ended June 30, | Operating loss impact three months ended March 31, | ||||||||||||||||||||||||||||||
| 2023 | 2022 | 2024 | 2023 | ||||||||||||||||||||||||||||
| (dollars in thousands) | (dollars in thousands) | ||||||||||||||||||||||||||||||
| +10% | -10% | +10% | -10% | +10% | -10% | +10% | -10% | ||||||||||||||||||||||||
NIS/USD | $ | (126 | ) | $ | 126 | $ | (2,978 | ) | $ | 2,978 | $ | (458 | ) | $ | 458 | $ | (841 | ) | $ | 841 | ||||||||||||
EUR/USD | $ | 169 | $ | (169 | ) | $ | 2,226 | $ | (2,226 | ) | $ | 757 | $ | (757 | ) | $ | 204 | $ | (204 | ) | ||||||||||||
GBP/USD | $ | (104 | ) | $ | 104 | $ | (2,135 | ) | $ | 2,135 | $ | (461 | ) | $ | 461 | $ | (481 | ) | $ | 481 | ||||||||||||
JPY/USD | $ | 312 | $ | (312 | ) | $ | 945 | $ | (945 | ) | $ | 306 | $ | (306 | ) | $ | 354 | $ | (354 | ) |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Period | (a) Total Number of Shares Repurchased | (b) Average Price Paid Per Share (1) | (c) Total Number of Shares Purchased as Part of Publicly Announced Program | (d) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan or Program (2) | ||||||||||||
April 1 - April 30, 2023 | — | $ | — | — | $ | — | ||||||||||
May 1 - May 31, 2023 | — | $ | — | — | $ | 40,000,000 | ||||||||||
June 1 - June 30, 2023 | 1,442,000 | $ | 3.02 | 1,442,000 | $ | 35,641,792 |
Period | (a) Total Number of Shares Repurchased | (b) Average Price Paid Per Share (1) | (c) Total Number of Shares Purchased as Part of Publicly Announced Program | (d) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan or Program (2) | ||||||||||||
January 1 - January 31, 2024 | 2,530,691 | $ | 4.24 | 2,530,691 | $ | 14,120,274 | ||||||||||
February 1 - February 29, 2024 | 1,888,295 | $ | 4.77 | 1,888,295 | $ | 100,000,000 | ||||||||||
March 1 - March 31, 2024 | 1,804,185 | $ | 4.36 | 1,804,185 | $ | 92,130,860 |
(1) | Excludes broker and transaction fees. |
(2) |
Item 3. | Defaults upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
Exhibit No. | Exhibit Description | ||
Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer | |||
Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer | |||
Section 1350 Certifications | |||
101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). | ||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | ||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | ||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | ||
101.LAB | Inline XBRL Taxonomy Extension Labels Linkbase Document. | ||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | ||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). |
By: | |
Name: Stephen C. Walker | |
Title: Chief Financial Officer |