For the full year 2020, the Company currently expects:
| | • | | Revenue: $1,050 million to $1,060 million, representing year-over-year growth of 41% to 43%. |
| | • | | Non-GAAP Operating Income: $116 million to $126 million, excluding stock-based compensation, related payroll tax expenses and approximately $54 million of one-time expenses related to the direct listing incurred in the third quarter of 2020. Non-GAAP operating income is expected to be $62 million to $72 million, excluding stock-based compensation and related payroll tax expenses and including the one-time direct listing expenses. |
| | • | | Headcount Growth: Full-time employee headcount growth of 4% compared to the end of 2019. |
For the full year 2021, the Company currently expects:
| | • | | Revenue: Year-over-year revenue growth to be greater than 30%. |
Non-GAAP Financial Measures
We use non-GAAP operating income (loss) to help us evaluate our business, identify trends affecting our business, formulate business plans and financial projections, and make strategic decisions. We define non-GAAP operating income (loss) as loss from operations excluding stock-based compensation (and related payroll tax expenses with respect to our outlook) and one-time expenses related to our direct listing. Non-GAAP operating income (loss) is a non-GAAP measure and there are inherent limitations associated with it. For example, our definition may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish this or similar metrics. Further, this metric has certain limitations in that it does not include the impact of certain expenses that are reflected in our consolidated statement of operations. Thus, non-GAAP operating income (loss) should be considered in addition to, not as a substitute for, or in isolation from, measures prepared in accordance with GAAP.
We exclude employer payroll tax expenses related to stock-based compensation, which is a cash expense, from our non-GAAP operating income (loss) outlook because such expenses are dependent on the future price of our common stock and other factors that are beyond our control. As such they cannot be reasonably predicted, and do not necessarily correlate to the performance or operation of our business. Accordingly, we have not reconciled our non-GAAP operating income (loss) outlook to its most directly comparable GAAP measure, as it is not available without unreasonable effort.
All interim period financial information and results included in this press release, as well as all financial information and results for any period during the year ending December 31, 2020, are unaudited.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may relate to, but are not limited to, expectations of future operating results or financial performance, including GAAP and non-GAAP guidance for the third quarter ending September 30, 2020, the year ending December 31, 2020, and the year ending December 31, 2021, the calculation of certain of our key financial and operating metrics and expectations regarding headcount growth, as well as assumptions relating to the foregoing. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expect,” “plan,” anticipate,” “believe,” “estimate, “predict,” “target,” “project,” “intend,” “potential,” “would,” “continue,” “ongoing,” or the negative of these terms or other comparable terminology that concern our expectations, strategy, priorities, plans, or intentions. You should not put undue reliance on any forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all.
