Exhibit 99.1
LifeLock Announces 2014 Third Quarter Results
Record quarterly revenue of $123.0 million, up 29% year-over-year
Q3 cumulative ending members of approximately 3.52 million, up 23% year-over-year
Q3 monthly average revenue per member of $11.22, up 7% year-over-year
TEMPE, AZ (October 29, 2014) –LifeLock, Inc. (NYSE: LOCK), an industry leader in identity theft protection, today announced financial results for the third quarter ended September 30, 2014.
Third Quarter 2014 Financial Highlights:
• | Revenue: Total revenue was $123.0 million for the third quarter of 2014, up 29% from $95.7 million for the third quarter of 2013. Consumer revenue was $116.1 million for the third quarter of 2014, up 31% from $88.4 million for the third quarter of 2013. Enterprise revenue was $6.9 million for the third quarter of 2014, compared with $7.4 million for the third quarter of 2013. |
• | Net Income: Net income was $5.7 million for the third quarter of 2014, compared with net income of $6.5 million for the third quarter of 2013. Net income per diluted share was $0.06 for the third quarter of 2014 based on 98.4 million weighted-average shares outstanding, compared with net income per diluted share of $0.07 for the third quarter of 2013 based on 96.4 million weighted-average shares outstanding. |
• | Adjusted Net Income: Adjusted net income was $15.9 million for the third quarter of 2014, compared with an adjusted net income of $11.6 million for the third quarter of 2013. Adjusted net income per diluted share was $0.16 for the third quarter of 2014 based on 98.4 million weighted-average shares outstanding, compared with an adjusted net income per diluted share of $0.12 for the third quarter of 2013 based on 96.4 million weighted-average shares outstanding. |
• | Adjusted EBITDA: Adjusted EBITDA was $17.9 million for the third quarter of 2014, compared with $12.8 million for the third quarter of 2013. |
• | Cash Flow: Cash flow from operations was $26.1 million for the third quarter of 2014, leading to free cash flow of $22.7 million after taking into consideration $3.5 million of capital expenditures. This compares with cash flow from operations of $18.2 million and free cash flow of $16.6 million, after taking into consideration $1.6 million of capital expenditures, for the third quarter of 2013. |
• | Balance Sheet: Total cash and marketable securities at the end of the third quarter of 2014 was $238.3 million, up from $216.0 million at the end of the second quarter of 2014. |
“LifeLock produced another strong set of results combining both growth and profitability in the third quarter,” said Todd Davis, LifeLock’s Chairman and CEO. “The launch of our new product portfolio was well received, as we were pleased with the initial enrollment in the new offerings. We believe that consumers are increasingly realizing the superior value and functionality provided by our offerings compared with those from the providers of legacy credit monitoring solutions.”
Please note that the results contained in this earnings release are preliminary, and the final numbers will be reflected in the Form 10-Q for the quarter ended September 30, 2014 that we will file with the Securities and Exchange Commission. The issue involves the accounting for share-based compensation, which we believe that we have been overestimating. At this point, we believe that the dollar amounts involved are approximately $8 million in total for the period beginning January 1, 2013 and ending June 30, 2014, although it may impact prior periods as well. The preliminary estimate from this adjustment has been reflected in our results contained in this earnings release. Accordingly, we have increased our GAAP net income for all periods involved, but this had no impact on our previously reported adjusted EBITDA, adjusted net income, and adjusted net income per share.
A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”
Third Quarter 2014 & Recent Business Highlights:
• | Recorded the 38th consecutive quarter of sequential growth in revenue and cumulative ending members. |
• | Added approximately 264,000 gross new members in the third quarter of 2014 and ended the quarter with approximately 3.52 million members. |
• | Achieved a retention rate of 87.5% for the third quarter of 2014, compared with 87.6% for the third quarter of 2013. |
• | Increased monthly average revenue per member to $11.22 for the third quarter of 2014 from $10.48 for the third quarter of 2013. |
• | Announced a Beta version of LifeLock Privacy Monitor, a new offering designed to help consumers easily find their personal information online and take back control of this data in an effort to protect their identity. |
• | Supported the launch of the National PTA’s campaign #ShareAwesome, a program designed to celebrate the positive use of digital and social media and to empower families to make smart, safe decisions when using the Internet and mobile devices. |
• | Launched a new business relationship with national residential mortgage lender PrimeLending, a PlainsCapital Company and subsidiary of Hilltop Holdings (NYSE: HTH). |
Guidance:
As of October 29, 2014, we are initiating guidance for our fourth quarter of 2014 as well as updating our guidance for the full year 2014.
• | Fourth Quarter 2014 Guidance: Total revenue is expected to be in the range of $127 million to $129 million. Adjusted net income per diluted share is expected to be in the range of $0.26 to $0.27 based on approximately 100 million fully diluted weighted-average shares outstanding. Adjusted EBITDA is expected to be in the range of $29 million to $30 million. |
• | Full Year 2014 Guidance: Total revenue is expected to be in the range of $473 million to $475 million. Adjusted net income per diluted share is expected to be in the range of $0.46 to $0.47 based on approximately 99 million fully diluted weighted-average shares outstanding and a cash tax rate of 5%. Adjusted EBITDA is expected to be in the range of $54 million to $55 million. Free cash flow is expected to be in the range of $82 million to $86 million. |
Conference Call Details:
• | What: LifeLock third quarter 2014 financial results. |
• | When: Wednesday, October 29, 2014 at 2PM PT (5PM ET). |
• | Dial in: To access the call in the United States, please dial (877) 407-3982, and for international callers dial(201) 493-6780. Callers may provide confirmation number 13592811 to access the call more quickly, and are encouraged to dial into the call 10 to 15 minutes prior to the start to prevent any delay in joining. |
• | Webcast:http://investor.lifelock.com/ (live and replay) |
• | Replay:A replay of the call will be available via telephone for seven days, beginning two hours after the call. To listen to the telephone replay in the United States, please dial (877) 870-5176, and for international callers dial (858) 384-5517 and enter access code 13592811. |
About LifeLock
LifeLock, Inc. (NYSE:LOCK) is a leading provider of proactive identity theft protection services for consumers and risk management services for enterprises. LifeLock’s threat detection, proactive identity alerts, and comprehensive remediation services help provide peace of mind for consumers amid the growing threat of identity theft. Leveraging unique data, science and patented technology from ID Analytics, Inc., a wholly owned subsidiary, LifeLock offers identity theft protection that goes significantly beyond credit monitoring. As part of its commitment to help fight identity theft, LifeLock works to train law enforcement and partners with a variety of non-profit organizations to help consumers establish positive habits to combat this threat.
Forward-Looking Statements
This press release contains “forward-looking” statements, as that term is defined under the federal securities laws, including statements regarding the expansion of our product portfolio, and our expected total revenue, adjusted net income per diluted share, adjusted EBITDA, and free cash flow for the fourth quarter of 2014 and for fiscal year 2014. These forward-looking statements are based on our current assumptions, expectations, and beliefs and are subject to substantial risks, uncertainties, assumptions, and changes in circumstances that may cause our actual results, performance, or achievements to differ materially from those expressed or implied in any forward-looking statement.
The risks and uncertainties referred to above include, but are not limited to, risks associated with our ability to maintain profitability on an annual basis; our ability to protect our customers’ confidential information; our ability to maintain and enhance our brand recognition and reputation; the competitive nature of the industries in which we conduct our business; our ability to maintain access to data
sources; our ability to retain our existing customers and attract new customers; our ability to improve our services and develop and introduce new services with broad appeal; our ability to maintain existing and secure new relationships with strategic partners; the effects of laws, regulations, and enforcement; the outcome of any litigation or regulatory proceeding; our ability to protect our intellectual property and not infringe on the intellectual property of others; and other “Risk Factors” set forth in our most recent filings with the Securities and Exchange Commission (the “SEC”).
Further information on these and other factors that could affect our financial results and the forward-looking statements in this press release is included in the filings we make with the SEC from time to time, including our Form 10-K for the year ended December 31, 2013, particularly under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Copies of these documents may be obtained by visiting our Investor Relations website athttp://investor.lifelock.com/ or the SEC’s website atwww.sec.gov.
We assume no obligation and do not intend to update these forward-looking statements, except as required by law.
Non-GAAP Financial Measures
Our reported results include certain non-GAAP financial measures, including adjusted net income, adjusted net income per diluted share, adjusted EBITDA, and free cash flow. We calculate adjusted net income as net income (loss) excluding amortization of acquired intangible assets, share-based compensation, income tax benefits and expenses resulting from changes in our deferred tax assets, and acquisition related expenses. Historically, in calculating adjusted net income, we also excluded changes in fair value of warrant liabilities and changes in fair value of embedded derivatives in the periods in which those items occurred. We do not currently have any warrant liabilities or embedded derivatives. Accordingly, we will only include those items of income and expense in our reconciliation of adjusted net income for period-over-period comparisons. We calculate adjusted net income per diluted share by dividing our adjusted net income by the weighted-average diluted shares outstanding. We calculate adjusted EBITDA as net income (loss) excluding depreciation and amortization, share-based compensation, interest expense, interest income, other income (expense), income tax (benefit) expense, and acquisition related expenses. Historically, in calculating adjusted EBITDA, we also excluded changes in fair value of warrant liabilities and changes in fair value of embedded derivatives in the periods in which those items occurred. We do not currently have any warrant liabilities or embedded derivatives. Accordingly, we will only include those items of income and expense in our reconciliation of adjusted EBITDA for period-over-period comparisons. We define free cash flow as net cash provided by (used in) operating activities less net cash used in investing activities for acquisitions of property and equipment.
We have included adjusted net income, adjusted net income per diluted share, and adjusted EBITDA in this press release because they are key measures used by us to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget, and to develop short- and long-term operational plans. In particular, the exclusion of certain expenses in calculating adjusted
net income and adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core business. Additionally, adjusted EBITDA is a key financial measure used in determining management’s incentive compensation.
We have included free cash flow in this press release because we believe it typically presents a more conservative measure of cash flow as purchases of property and equipment are necessary components of ongoing operations. We believe that this non-GAAP financial measure is useful in evaluating our business because free cash flow reflects the cash surplus available to fund the expansion of our business after payment of capital expenditures relating to the necessary components of ongoing operations. We also believe that the use of free cash flow provides consistency and comparability with our past financial performance, facilitates period-to-period comparisons of operations, and also facilitates comparisons with other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results.
Although adjusted net income, adjusted EBITDA, and free cash flow are frequently used by investors in their evaluations of companies, these non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Because of these limitations, these non-GAAP financial measures should be considered alongside other financial performance measures.
We have not reconciled adjusted net income per diluted share guidance to net income per diluted share guidance or adjusted EBITDA guidance to net income guidance because we do not provide guidance for share-based compensation expense, provision for income taxes, interest income, interest expense, change in fair value of warrant liabilities, change in fair value of embedded derivatives, other income and expenses, depreciation expense, amortization of intangible assets, acquisition expenses, or income tax (benefit) expense, which are reconciling items between net income (loss) and adjusted net income and net income (loss) and adjusted EBITDA. As items that impact net income (loss) are out of our control and/or cannot be reasonably predicted, we are unable to provide such guidance. Accordingly, reconciliation to net income (loss) is not available without unreasonable effort. For a reconciliation of historical non-GAAP financial measures to the nearest comparable GAAP measures, see the reconciliation tables included in this press release.
Media Contact:
Kelley Bonsall
Media@lifelock.com
415-767-7749
Investor Relations Contact:
Greg Kleiner
ICR for LifeLock
Investor.relations@lifelock.com
480-457-5000
LifeLock, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue | ||||||||||||||||
Consumer revenue | $ | 116,115 | $ | 88,386 | $ | 326,448 | $ | 246,053 | ||||||||
Enterprise revenue | 6,916 | 7,353 | 19,882 | 21,300 | ||||||||||||
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Total revenue | 123,031 | 95,739 | 346,330 | 267,353 | ||||||||||||
Cost of services | 30,327 | 24,887 | 89,682 | 73,866 | ||||||||||||
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Gross profit | 92,704 | 70,852 | 256,648 | 193,487 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Sales and marketing | 51,672 | 40,427 | 166,505 | 125,294 | ||||||||||||
Technology and development | 12,341 | 10,444 | 37,968 | 29,538 | ||||||||||||
General and administrative | 16,721 | 11,252 | 45,221 | 30,734 | ||||||||||||
Amortization of acquired intangible assets | 2,231 | 1,966 | 6,693 | 5,898 | ||||||||||||
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Total costs and expenses | 82,965 | 64,089 | 256,387 | 191,464 | ||||||||||||
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Income from operations | 9,739 | 6,763 | 261 | 2,023 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest expense | (89 | ) | (82 | ) | (264 | ) | (228 | ) | ||||||||
Interest income | 73 | 29 | 189 | 75 | ||||||||||||
Other | (134 | ) | (7 | ) | (151 | ) | (11 | ) | ||||||||
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Total other expense | (150 | ) | (60 | ) | (226 | ) | (164 | ) | ||||||||
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Income before provision for income taxes | 9,589 | 6,703 | 35 | 1,859 | ||||||||||||
Income tax expense | 3,905 | 223 | 18 | 218 | ||||||||||||
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Net income | $ | 5,684 | $ | 6,480 | $ | 17 | $ | 1,641 | ||||||||
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Net income per share: | ||||||||||||||||
Basic | $ | 0.06 | $ | 0.07 | $ | 0.00 | $ | 0.02 | ||||||||
Diluted | $ | 0.06 | $ | 0.07 | $ | 0.00 | $ | 0.02 | ||||||||
Weighted-average common shares outstanding used in computing net income per share: | ||||||||||||||||
Basic | 92,925 | 89,318 | 92,437 | 87,841 | ||||||||||||
Diluted | 98,373 | 96,395 | 98,531 | 95,310 |
The results above and the financial tables below have been revised to correct an overstatement of non-cash expense of approximately $8 million for the period January 1, 2013 through June 30, 2014 associated with stock-based compensation expense.
LifeLock, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
September 30, 2014 | December 31, 2013 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 128,629 | $ | 123,911 | ||||
Marketable securities | 109,706 | 48,688 | ||||||
Trade and other receivables, net | 8,863 | 10,906 | ||||||
Deferred tax assets, net | 13,170 | 13,117 | ||||||
Prepaid expenses and other current assets | 7,662 | 6,961 | ||||||
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Total current assets | 268,030 | 203,583 | ||||||
Property and equipment, net | 21,663 | 16,504 | ||||||
Goodwill | 159,342 | 159,342 | ||||||
Intangible assets, net | 40,520 | 47,213 | ||||||
Deferred tax assets, net – non-current | 34,733 | 34,796 | ||||||
Other non-current assets | 5,432 | 1,812 | ||||||
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Total assets | $ | 529,720 | $ | 463,250 | ||||
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Liabilities and stockholders’ equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 7,532 | $ | 2,422 | ||||
Accrued expenses and other liabilities | 46,051 | 34,926 | ||||||
Deferred revenue | 145,848 | 119,106 | ||||||
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Total current liabilities | 199,431 | 156,454 | ||||||
Other non-current liabilities | 6,256 | 4,640 | ||||||
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Total liabilities | 205,687 | 161,094 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Common stock | 93 | 91 | ||||||
Additional paid-in capital | 487,777 | 465,853 | ||||||
Accumulated other comprehensive loss | (84 | ) | (18 | ) | ||||
Accumulated deficit | (163,753 | ) | (163,770 | ) | ||||
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Total stockholders’ equity | 324,033 | 302,156 | ||||||
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Total liabilities and stockholders’ equity | $ | 529,720 | $ | 463,250 | ||||
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LifeLock, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
Nine Months Ended September 30, | ||||||||
2014 | 2013 | |||||||
Operating activities | ||||||||
Net income | $ | 17 | $ | 1,640 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 12,259 | 9,484 | ||||||
Share-based compensation | 12,735 | 7,798 | ||||||
Provision for doubtful accounts | 333 | 220 | ||||||
Amortization of premiums on marketable securities | 1,213 | — | ||||||
Deferred income tax expense | 10 | 58 | ||||||
Other | 39 | 28 | ||||||
Changes in operating assets and liabilities: | ||||||||
Trade and other receivables | 566 | (3,698 | ) | |||||
Prepaid expenses and other current assets | (701 | ) | 413 | |||||
Other non-current assets | 716 | 380 | ||||||
Accounts payable | 5,282 | 831 | ||||||
Accrued expenses and other liabilities | 11,303 | 5,993 | ||||||
Deferred revenue | 26,742 | 24,939 | ||||||
Other non-current liabilities | 1,617 | 3,741 | ||||||
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Net cash provided by operating activities | 72,131 | 51,827 | ||||||
Investing activities | ||||||||
Acquisition of property and equipment | (11,127 | ) | (5,264 | ) | ||||
Purchases of marketable securities | (95,686 | ) | (24,247 | ) | ||||
Maturities of marketable securities | 34,418 | — | ||||||
Purchase of company-owned life insurance policies | (4,337 | ) | — | |||||
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Net cash used in investing activities | (76,732 | ) | (29,511 | ) | ||||
Financing activities | ||||||||
Proceeds from share-based compensation plans | 9,704 | 11,815 | ||||||
Proceeds from warrant exercises | 375 | |||||||
Payments for employee tax withholdings related to restricted stock | (760 | ) | — | |||||
Payments for debt issuance costs | — | (440 | ) | |||||
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Net cash provided by financing activities | 9,319 | 11,375 | ||||||
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Net increase in cash and cash equivalents | 4,718 | 33,691 | ||||||
Cash and cash equivalents at beginning of period | 123,911 | 134,197 | ||||||
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Cash and cash equivalents at end of period | $ | 128,629 | $ | 167,888 | ||||
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Share-Based Compensation
(in thousands)
(Unaudited)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Cost of services | $ | 334 | $ | 162 | $ | 918 | $ | 523 | ||||||||
Sales and marketing | 615 | 392 | 2,029 | 935 | ||||||||||||
Technology and development | 867 | 764 | 3,737 | 1,803 | ||||||||||||
General and administrative | 2,280 | 1,587 | 6,051 | 4,537 | ||||||||||||
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Total share-based compensation expense | $ | 4,096 | $ | 2,905 | $ | 12,735 | $ | 7,798 | ||||||||
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Key Financial and Operating Metrics
(in thousands except percentages and per member data)
(Unaudited)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue | ||||||||||||||||
Consumer revenue | $ | 116,115 | $ | 88,386 | $ | 326,448 | $ | 246,053 | ||||||||
Enterprise revenue | 6,916 | 7,353 | 19,882 | 21,300 | ||||||||||||
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Total revenue | $ | 123,031 | $ | 95,739 | $ | 346,330 | $ | 267,353 | ||||||||
Adjusted net income | $ | 15,909 | $ | 11,595 | $ | 19,455 | $ | 15,394 | ||||||||
Adjusted EBITDA | $ | 17,929 | $ | 12,791 | $ | 25,255 | $ | 19,305 | ||||||||
Free cash flow | $ | 22,653 | $ | 16,629 | $ | 61,004 | $ | 46,563 | ||||||||
Cumulative ending members | 3,524 | 2,864 | 3,524 | 2,864 | ||||||||||||
Gross new members | 264 | 218 | 912 | 698 | ||||||||||||
Member retention rate | 87.5 | % | 87.6 | % | 87.5 | % | 87.6 | % | ||||||||
Average cost of acquisition per member | $ | 184 | $ | 172 | $ | 173 | $ | 167 | ||||||||
Monthly average revenue per member | $ | 11.22 | $ | 10.48 | $ | 11.02 | $ | 10.17 | ||||||||
Enterprise transactions | 66,104 | 53,042 | 173,360 | 159,850 |
Reconciliation of GAAP to Adjusted Results
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Reconciliation of Gross Profit to Adjusted Gross Profit | ||||||||||||||||
Gross profit | $ | 92,704 | $ | 70,852 | $ | 256,648 | $ | 193,487 | ||||||||
Share-based compensation | 334 | 162 | 918 | 523 | ||||||||||||
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Adjusted gross profit | $ | 93,038 | $ | 71,014 | $ | 257,566 | $ | 194,010 | ||||||||
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Reconciliation of Sales and Marketing Expenses to Adjusted Sales and Marketing Expenses | ||||||||||||||||
Sales and marketing expenses | $ | 51,672 | $ | 40,427 | $ | 166,505 | $ | 125,294 | ||||||||
Share-based compensation | (615 | ) | (392 | ) | (2,030 | ) | (935 | ) | ||||||||
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Adjusted sales and marketing expenses | $ | 51,057 | $ | 40,035 | $ | 164,475 | $ | 124,359 | ||||||||
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Reconciliation of Technology and Development Expenses to Adjusted Technology and Development Expenses | ||||||||||||||||
Technology and development expenses | $ | 12,341 | $ | 10,444 | $ | 37,969 | $ | 29,538 | ||||||||
Share-based compensation | (867 | ) | (764 | ) | (3,738 | ) | (1,803 | ) | ||||||||
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Adjusted technology and development expenses | $ | 11,474 | $ | 9,680 | $ | 34,231 | $ | 27,735 | ||||||||
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Reconciliation of General and Administrative Expenses to Adjusted General and Administrative Expenses | ||||||||||||||||
General and administrative expenses | $ | 16,721 | $ | 11,252 | $ | 45,220 | $ | 30,734 | ||||||||
Share-based compensation | (2,280 | ) | (1,587 | ) | (6,049 | ) | (4,537 | ) | ||||||||
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Adjusted general and administrative expenses | $ | 14,441 | $ | 9,665 | $ | 39,171 | $ | 26,197 | ||||||||
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Reconciliation of Income (from Operations to Adjusted Income from Operations | ||||||||||||||||
Income from operations | $ | 9,739 | $ | 6,763 | $ | 261 | $ | 2,023 | ||||||||
Share-based compensation | 4,096 | 2,905 | 12,735 | 7,798 | ||||||||||||
Amortization of acquired intangible assets | 2,231 | 1,966 | 6,693 | 5,898 | ||||||||||||
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Adjusted income from operations | $ | 16,066 | $ | 11,634 | $ | 19,689 | $ | 15,719 | ||||||||
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Reconciliation of Net Income to Adjusted Net Income | ||||||||||||||||
Net income | $ | 5,684 | $ | 6,480 | $ | 17 | $ | 1,641 | ||||||||
Amortization of acquired intangible assets | 2,231 | 1,966 | 6,693 | 5,898 | ||||||||||||
Deferred income tax expense | 3,898 | 244 | 10 | 57 | ||||||||||||
Share-based compensation | 4,096 | 2,905 | 12,735 | 7,798 | ||||||||||||
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Adjusted net income | $ | 15,909 | $ | 11,595 | $ | 19,455 | $ | 15,394 | ||||||||
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Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Reconciliation of Diluted Shares to Adjusted Diluted Shares | ||||||||||||||||
Diluted shares | 98,373 | 96,395 | 98,531 | 95,310 | ||||||||||||
Dilutive securities excluded due to net loss available for distribution | — | — | — | — | ||||||||||||
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Adjusted diluted shares | 98,373 | 96,395 | 98,531 | 95,310 | ||||||||||||
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Reconciliation of Net Income per Diluted Share to Adjusted Net Income per Diluted Share | ||||||||||||||||
Net income per diluted share | $ | 0.06 | $ | 0.07 | $ | 0.00 | $ | 0.02 | ||||||||
Adjustments to net income | 0.10 | 0.05 | 0.20 | 0.14 | ||||||||||||
Adjustments to diluted shares | — | — | — | — | ||||||||||||
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Adjusted net income per diluted share | $ | 0.16 | $ | 0.12 | $ | 0.20 | $ | 0.16 | ||||||||
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Reconciliation of Net Income to Adjusted EBITDA | ||||||||||||||||
Net income | $ | 5,684 | $ | 6,480 | $ | 17 | $ | 1,641 | ||||||||
Depreciation and amortization | 4,094 | 3,124 | 12,259 | 9,484 | ||||||||||||
Interest expense | 89 | 82 | 264 | 227 | ||||||||||||
Interest income | (73 | ) | (29 | ) | (189 | ) | (75 | ) | ||||||||
Other | 134 | 7 | 151 | 11 | ||||||||||||
Income tax expense | 3,905 | 223 | 18 | 219 | ||||||||||||
Share-based compensation | 4,096 | 2,905 | 12,735 | 7,798 | ||||||||||||
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Adjusted EBITDA | $ | 17,929 | $ | 12,792 | $ | 25,255 | $ | 19,305 | ||||||||
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Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow | ||||||||||||||||
Net cash provided by operating activities | $ | 26,118 | $ | 18,241 | $ | 72,131 | $ | 51,827 | ||||||||
Acquisitions of property and equipment | (3,465 | ) | (1,612 | ) | (11,127 | ) | (5,264 | ) | ||||||||
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Free cash flow | $ | 22,653 | $ | 16,629 | $ | 61,004 | $ | 46,563 | ||||||||
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