Exhibit 99.2
Third Quarter 2022 Investor Supplement
Product Developments
Security:
•Introduced the AWS Lambda agent for the Fastly Next-Gen WAF, further enhancing the ability to deploy Fastly’s Next-Gen WAF in more places, to support serverless and FaaS initiatives with one of the most popular serverless solutions on the market.
•Released general availability of GraphQL support with Next-Gen WAF, a frictionless security solution supporting popular GraphQL APIs with GraphQL visibility and protection available right out of the box.
Observability:
•Launched general availability of Origin Inspector, enabling users to have real-time and historical visibility into responses delivered from their origin servers to the Fastly Edge Cloud, and Domain Inspector, enabling users with traffic monitoring for a single fully qualified domain name (FQDN) or multiple domains within a Fastly service.
Leading Innovation:
•Redesigned the Fastly status page to include resources separated into Fastly’s Network Services, Security, Compute, and Observability product categories.
•Released in beta Compute@Edge support for Go, a programming language used to build large-scale network tools such as Docker, Kubernetes, Istio and Terraform.
Developer Relations:
•Glitch has surpassed 2 million developers, extending Fastly’s opportunity to convert their ideas into globally performant, secure and reliable applications at scale.
Key Metrics Highlights
•Trailing 12-month net retention rate (NRR LTM)1 was 118% in the third quarter, up from 117% in the second quarter 2022.
•Dollar-Based Net Expansion Rate (DBNER)2 was 122% in the third quarter, up from 120% in the second quarter 2022.
•Total customer count was 2,925, of which 482 were enterprise customers.4
•Average enterprise customer spend of $759K in the third quarter, up 4% quarter-over-quarter.
Corporate Development
•Todd Nightingale joined Fastly as CEO, bringing his experience from Cisco, where he led business strategy and development efforts for its networking portfolio.
Customer and Partner Highlights
•Named a Challenger in Gartner® Magic Quadrant™ for Web Application and API Protection (WAAP). Along with our recent recognition as the Customers’ Choice for Web Application and API Protection for a fourth consecutive year, this validates Fastly’s first and only unified solution that protects Internet scale in any environment.
•New Relic, a developer of cloud-based performance software for websites and applications, is now using Fastly’s Compute@Edge after experiencing quality issues with a competitor's edge-based solution.
•Nirvana Labs, an innovator in decentralized blockchain solutions, chose Fastly’s Edge and WAF capabilities for its rate limit performance over its existing provider.
•Saturn, a time-based scheduling and social network for high school students, chose Fastly’s Next-Gen WAF and network services over its incumbent provider.
Third Quarter 2022 Financial Highlights
•Record revenue of $108.5 million, representing 6% sequential growth and 25% year-over-year growth.
•GAAP gross margin of 48.6%, compared to 52.4% in the third quarter of 2021. Non-GAAP gross margin of 53.6%, compared to 57.5% in the third quarter of 2021.
•GAAP net loss per basic and diluted shares of $0.52 compared to $0.48 in the third quarter of 2021. Non-GAAP net loss5 per basic and diluted shares of $0.14, compared to $0.11 in the third quarter of 2021.
Fourth Quarter and Full Year 2022 Guidance:
| Q4 2022 | Full Year 2022 | |||||||||||||
| Total Revenue (millions) | $112 - $116 | $425 - $429 | ||||||||||||
Non-GAAP Operating Loss (millions)(5) | ($18.0) - ($14.0) | ($82) - ($78) | ||||||||||||
Non-GAAP Net Loss per share (6) (7) | ($0.15) - ($0.11) | ($0.67) - ($0.63) | ||||||||||||
Calculations of Key and Other Selected Metrics – Quarterly
(unaudited)
| Q4 2020 | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | Q1 2022 | Q2 2022 | Q3 2022 | |||||||||||||||||||||||||||||||||||||||||||
| Total Customer Count | 2,326 | 2,458 | 2,581 | 2,748 | 2,804 | 2,880 | 2,894 | 2,925 | ||||||||||||||||||||||||||||||||||||||||||
Enterprise Customer Count(4) | 378 | 395 | 408 | 430 | 445 | 457 | 471 | 482 | ||||||||||||||||||||||||||||||||||||||||||
| Enterprise Revenue % Total LTM | 88 | % | 89 | % | 89 | % | 88 | % | 88 | % | 89 | % | 88 | % | 89 | % | ||||||||||||||||||||||||||||||||||
Enterprise Customer Average Spend LTM (in thousands)(8) | $ | 681 | $ | 705 | $ | 702 | $ | 698 | $ | 704 | $ | 722 | $ | 730 | $ | 759 | ||||||||||||||||||||||||||||||||||
Net Retention Rate (NRR) Quarter(9) | 116 | % | 110 | % | 93 | % | 112 | % | 107 | % | 114 | % | 128 | % | 115 | % | ||||||||||||||||||||||||||||||||||
Net Retention Rate (NRR) LTM(1) | 137 | % | 135 | % | 121 | % | 114 | % | 118 | % | 115 | % | 117 | % | 118 | % | ||||||||||||||||||||||||||||||||||
Dollar-Based Net Expansion Rate (DBNER)(2) | 144 | % | 141 | % | 126 | % | 118 | % | 121 | % | 118 | % | 120 | % | 122 | % | ||||||||||||||||||||||||||||||||||
Annual Revenue Retention Rate (ARR)(3) | 99.3 | % | — | % | — | % | — | % | 99.2 | % | — | % | — | % | — | % | ||||||||||||||||||||||||||||||||||
| Global Network Capacity | 117 TB/sec | 130 TB/sec | 145 TB/sec | 167 TB/sec | 184 TB/sec | 198 TB/sec | 215 TB/sec | 233 TB/sec | ||||||||||||||||||||||||||||||||||||||||||
| Countries | 26 | 26 | 28 | 31 | 32 | 34 | 34 | 35 | ||||||||||||||||||||||||||||||||||||||||||
| Markets | 56 | 58 | 61 | 68 | 71 | 75 | 78 | 79 | ||||||||||||||||||||||||||||||||||||||||||
1 We calculate LTM Net Retention Rate by dividing the total customer revenue for the prior twelve-month period (“prior 12-month period”) ending at the beginning of the last twelve-month period (“LTM period”) minus revenue contraction due to billing decreases or customer churn, plus revenue expansion due to billing increases during the LTM period from the same customers by the total prior 12-month period revenue. We believe the LTM Net Retention Rate is supplemental as it removes some of the volatility that is inherent in a usage-based business model.
2 We calculate Dollar-Based Net Expansion Rate by dividing the revenue for a given period from customers who remained customers as of the last day of the given period (the “current” period) by the revenue from the same customers for the same period measured one year prior (the “base” period). The revenue included in the current period excludes revenue from (i) customers that churned after the end of the base period and (ii) new customers that entered into a customer agreement after the end of the base period.
3 Annual revenue retention rate is calculated by subtracting the quotient of the Annual Revenue Churn from all of our Churned Customers divided by our annual revenue of the same calendar year from 100%. Our “Annual Revenue Churn” is calculated by multiplying the final full month of revenue from a customer that terminated its contract with us (a “Churned Customer”) by the number of months remaining in the same calendar year.
4 Enterprise customers are defined as those spending $100,000 or more in the trailing twelve-month period.
5 For a reconciliation of non-GAAP financial measures to their corresponding GAAP measures, please refer to the reconciliation table at the end of this letter.
6 Assumes weighted average basic shares outstanding of 123.6 million in Q4 2022 and 121.6 million for the full year 2022.
7 Non-GAAP Net Loss per share is calculated as Non-GAAP Net Loss divided by weighted average basic shares for 2022.
8 Calculated based on trailing twelve-months.
9 Net Retention Rate measures the net change in monthly revenue from existing customers in the last month of the period (the “current" period month) compared to the last month of the same period one year prior (the “prior" period month). The revenue included in the current period month includes revenue from (i) revenue contraction due to billing decreases or customer churn and (ii) revenue expansion due to billing increases, but excludes revenue from new customers. We calculate Net Retention Rate by dividing the revenue from the current period month by the revenue in the prior period month.
Forward-Looking Statements
This investor supplement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended, about us and our industry that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or Fastly's future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates,” “going to,” "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," "continue," “would,” or the negative of these words or other similar terms or expressions that concern Fastly's expectations, goals, strategy, priorities, plans, projections, or intentions. Forward-looking statements in this investor supplement include, but are not limited to, statements regarding Fastly’s future financial and operating performance, including its outlook and guidance; and Fastly's strategies, product and business plans. Fastly's expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include the possibility that: Fastly is unable to attract and retain customers; Fastly's existing customers and partners do not maintain or increase usage of Fastly's platform; Fastly's platform and product features do not meet expectations, including due to defects, interruptions, security breaches, delays in performance or other similar problems; Fastly is unable to adapt to meet evolving market and customer demands and rapid technological change; Fastly is unable to comply with modified or new industry standards, laws and regulations; Fastly is unable to generate sufficient revenues to achieve or sustain profitability; Fastly’s limited operating history makes it difficult to evaluate its prospects and future operating results; Fastly is unable to effectively manage its growth; and Fastly is unable to compete effectively. The forward-looking statements contained in this investor supplement are also subject to other risks and uncertainties, including those more fully described in Fastly’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, and additional information that will be set forth in Fastly’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, and other filings and reports that we may file from time to time with the SEC. The forward-looking statements in this investor supplement are based on information available to Fastly as of the date hereof, and Fastly disclaims any obligation to update any forward-looking statements, except as required by law.
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States ("GAAP"), the Company uses the following non-GAAP measures of financial performance: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss, non-GAAP basic and diluted net loss per common share, non-GAAP research and development, non-GAAP sales and marketing, non-GAAP general and administrative, free cash flow and adjusted EBITDA. The presentation of this additional financial information is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. These non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. In addition, these non-GAAP financial measures may be different from the non-GAAP financial measures used by other companies. These non-GAAP measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures. Management compensates for these limitations by reconciling these non-GAAP financial measures to the most comparable GAAP financial measures within our earnings releases.
Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss and non-GAAP basic and diluted net loss per common share, non-GAAP research and development, non-GAAP sales and marketing, and non-GAAP general and administrative differ from GAAP in that they exclude stock-based compensation expense, amortization of acquired intangible assets, acquisition-related expenses, executive transition costs, net gain on extinguishment of debt and amortization of debt discount and issuance costs.
Adjusted EBITDA: excludes stock-based compensation expense, depreciation and other amortization expenses, amortization of acquired intangible assets, acquisition-related expenses, executive transition costs, interest income, interest expense, including amortization of debt discount and issuance costs, net gain on extinguishment of debt, other income (expense), net, and income taxes.
Acquisition-related Expenses: consists of acquisition-related charges that are not related to ongoing operations. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net loss performance and its adjusted EBITDA performance because these charges may not be reflective of our core business, ongoing operating results, or future outlook.
Amortization of Acquired Intangible Assets: consists of non-cash charges that can be affected by the timing and magnitude of asset purchases and acquisitions. Management considers its operating results without this activity when evaluating its ongoing non-GAAP performance and its adjusted EBITDA performance because these charges are non-cash expenses that can be affected by the timing and magnitude of asset purchases and acquisitions and may not be reflective of our core business, ongoing operating results, or future outlook.
Amortization of Debt Discount and Issuance Costs: consists primarily of amortization expense related to our debt obligations. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net loss performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook. These are included in our total interest expense.
Capital Expenditures: consists of cash used for purchases of property and equipment, net of proceeds from sale of property and equipment, capitalized internal-use software and payments on finance lease obligations, as reflected in our statement of cash flows.
Depreciation and Other Amortization Expense: consists of non-cash charges that can be affected by the timing and magnitude of asset purchases. Management considers its operating results without this activity when evaluating its ongoing adjusted EBITDA performance because these charges are non-cash expenses that can be affected by the timing and magnitude of asset purchases and may not be reflective of our core business, ongoing operating results, or future outlook.
Executive Transition costs: consists of one-time cash and non-cash charges recognized with respect to changes in our executive's employment status. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net loss performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Free Cash Flow: calculated as net cash used in operating activities less capital expenditures, including any advance payments made related to capital expenditures.
Income Taxes: consists primarily of expenses recognized related to state and foreign income taxes. Management considers its operating results without this activity when evaluating its ongoing adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Interest Expense: consists primarily of interest expense related to our debt instruments, including amortization of debt discount and issuance costs. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net loss performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Interest Income: consists primarily of interest income related to our marketable securities. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net loss and adjusted EBITDA results because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Net Gain on Debt Extinguishment: relates to net gain on the partial repurchase of our outstanding convertible debt. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net loss and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Other Income (Expense), Net: consists primarily of foreign currency transaction gains and losses. Management considers its operating results without this activity when evaluating its ongoing adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Stock-based Compensation Expense: consists of expenses for stock options, restricted stock units, performance awards, restricted stock awards and Employee Stock Purchase Plan ("ESPP") under our equity incentive plans. Although stock-based compensation is an expense for the Company and is viewed as a form of compensation, management considers its operating results without this activity when evaluating its ongoing non-GAAP net loss performance and its adjusted EBITDA performance, primarily because it is a non-cash expense not believed by management to be reflective of our core business, ongoing operating results, or future outlook. In addition, the value of some stock-based instruments is determined using formulas that incorporate variables, such as market volatility, that are beyond our control.
Management believes these non-GAAP financial measures and adjusted EBITDA serve as useful metrics for our management and investors because they enable a better understanding of the long-term performance of our core business and facilitate comparisons of our operating results over multiple periods and to those of peer companies, and when taken together with the corresponding GAAP financial measures and our reconciliations, enhance investors' overall understanding of our current financial performance.
In the financial tables below, the Company provides a reconciliation of the most comparable GAAP financial measure to the historical non-GAAP financial measures used in this investor supplement.
Consolidated Statements of Operations – Quarterly
(unaudited, in thousands, except per share amounts)
| Q4 2020 | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | Q1 2022 | Q2 2022 | Q3 2022 | |||||||||||||||||||||||||||||||||||||||||||
| Revenue | $ | 82,649 | $ | 84,852 | $ | 85,026 | $ | 86,735 | $ | 97,717 | $ | 102,382 | $ | 102,518 | $ | 108,504 | ||||||||||||||||||||||||||||||||||
Cost of revenue(1) | 33,753 | 37,494 | 40,320 | 41,244 | 47,944 | 53,915 | 56,466 | 55,825 | ||||||||||||||||||||||||||||||||||||||||||
| Gross profit | 48,896 | 47,358 | 44,706 | 45,491 | 49,773 | 48,467 | 46,052 | 52,679 | ||||||||||||||||||||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Research and development(1) | 25,590 | 28,988 | 30,346 | 32,528 | 34,997 | 40,437 | 38,717 | 38,957 | ||||||||||||||||||||||||||||||||||||||||||
Sales and marketing(1) | 34,765 | 34,872 | 36,334 | 39,288 | 42,151 | 41,480 | 46,760 | 47,006 | ||||||||||||||||||||||||||||||||||||||||||
General and administrative (1) | 45,885 | 33,461 | 35,494 | 28,609 | 29,281 | 29,554 | 29,543 | 32,481 | ||||||||||||||||||||||||||||||||||||||||||
| Total operating expenses | 106,240 | 97,321 | 102,174 | 100,425 | 106,429 | 111,471 | 115,020 | 118,444 | ||||||||||||||||||||||||||||||||||||||||||
| Loss from operations | (57,344) | (49,963) | (57,468) | (54,934) | (56,656) | (63,004) | (68,968) | (65,765) | ||||||||||||||||||||||||||||||||||||||||||
| Net gain on extinguishment of debt | — | — | — | — | — | — | 54,391 | — | ||||||||||||||||||||||||||||||||||||||||||
| Interest income | 178 | 174 | 276 | 280 | 552 | 681 | 1,502 | 1,967 | ||||||||||||||||||||||||||||||||||||||||||
| Interest expense | (452) | (661) | (1,436) | (1,555) | (1,593) | (1,622) | (1,530) | (1,381) | ||||||||||||||||||||||||||||||||||||||||||
| Other income (expense) | (697) | (64) | 178 | 41 | 201 | (279) | (1,673) | 1,877 | ||||||||||||||||||||||||||||||||||||||||||
| Loss before income taxes | (58,315) | (50,514) | (58,450) | (56,168) | (57,496) | (64,224) | (16,278) | (63,302) | ||||||||||||||||||||||||||||||||||||||||||
| Income tax expense | (12,611) | 169 | (155) | 30 | 25 | 40 | 159 | 118 | ||||||||||||||||||||||||||||||||||||||||||
| Net loss | $ | (45,704) | $ | (50,683) | $ | (58,295) | $ | (56,198) | $ | (57,521) | $ | (64,264) | $ | (16,437) | $ | (63,420) | ||||||||||||||||||||||||||||||||||
| Net loss per share attributable to common stockholders, basic and diluted | $ | (0.40) | $ | (0.44) | $ | (0.51) | $ | (0.48) | $ | (0.49) | $ | (0.54) | $ | (0.14) | $ | (0.52) | ||||||||||||||||||||||||||||||||||
| Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 112,902 | 114,134 | 115,326 | 116,475 | 118,161 | 119,673 | 121,242 | 122,339 | ||||||||||||||||||||||||||||||||||||||||||
__________
(1)Includes stock-based compensation expense as follows:
| Q4 2020 | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | Q1 2022 | Q2 2022 | Q3 2022 | |||||||||||||||||||||||||||||||||||||||||||
| Cost of revenue | $ | 1,255 | $ | 1,186 | $ | 1,828 | $ | 1,897 | $ | 2,316 | $ | 2,946 | $ | 3,188 | $ | 2,978 | ||||||||||||||||||||||||||||||||||
| Research and development | 7,017 | 7,958 | 8,634 | 14,752 | 15,675 | 18,589 | 13,889 | 14,488 | ||||||||||||||||||||||||||||||||||||||||||
| Sales and marketing | 5,275 | 5,008 | 5,631 | 9,121 | 11,399 | 10,094 | 10,184 | 10,920 | ||||||||||||||||||||||||||||||||||||||||||
| General and administrative | 16,134 | 16,686 | 17,333 | 10,866 | 10,198 | 8,393 | 7,717 | 10,992 | ||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 29,681 | $ | 30,838 | $ | 33,426 | $ | 36,636 | $ | 39,588 | $ | 40,022 | $ | 34,978 | $ | 39,378 | ||||||||||||||||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures - Quarterly
(unaudited, in thousands, except per share amounts)
| Q4 2020 | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | Q1 2022 | Q2 2022 | Q3 2022 | |||||||||||||||||||||||||||||||||||||||||||
| Gross Profit | . | . | ||||||||||||||||||||||||||||||||||||||||||||||||
| GAAP gross Profit | $ | 48,896 | $ | 47,358 | $ | 44,706 | $ | 45,491 | $ | 49,773 | $ | 48,467 | $ | 46,052 | $ | 52,679 | ||||||||||||||||||||||||||||||||||
| Stock-based compensation | 1,255 | 1,186 | 1,828 | 1,897 | 2,316 | 2,946 | 3,188 | 2,978 | ||||||||||||||||||||||||||||||||||||||||||
| Amortization of acquired intangible assets | 2,475 | 2,475 | 2,475 | 2,475 | 2,475 | 2,475 | 2,475 | 2,475 | ||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP gross profit | 52,626 | 51,019 | 49,009 | 49,863 | 54,564 | 53,888 | 51,715 | 58,132 | ||||||||||||||||||||||||||||||||||||||||||
| GAAP gross margin | 59.2 | % | 55.8 | % | 52.6 | % | 52.4 | % | 50.9 | % | 47.3 | % | 44.9 | % | 48.6 | % | ||||||||||||||||||||||||||||||||||
| Non-GAAP gross margin | 63.7 | % | 60.1 | % | 57.6 | % | 57.5 | % | 55.8 | % | 52.6 | % | 50.4 | % | 53.6 | % | ||||||||||||||||||||||||||||||||||
| Research and development | ||||||||||||||||||||||||||||||||||||||||||||||||||
| GAAP research and development | 25,590 | 28,988 | 30,346 | 32,528 | 34,997 | 40,437 | 38,717 | 38,957 | ||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | (7,017) | (7,958) | (8,634) | (14,752) | (15,675) | (18,589) | (13,889) | (14,488) | ||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP research and development | 18,573 | 21,030 | 21,712 | 17,776 | 19,322 | 21,848 | 24,828 | 24,469 | ||||||||||||||||||||||||||||||||||||||||||
| Sales and marketing | ||||||||||||||||||||||||||||||||||||||||||||||||||
| GAAP sales and marketing | 34,765 | 34,872 | 36,334 | 39,288 | 42,151 | 41,480 | 46,760 | 47,006 | ||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | (5,275) | (5,008) | (5,631) | (9,121) | (11,399) | (10,094) | (10,184) | (10,920) | ||||||||||||||||||||||||||||||||||||||||||
| Amortization of acquired intangible assets | (2,603) | (2,816) | (2,709) | (2,709) | (2,710) | (2,709) | (2,710) | (2,897) | ||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP sales and marketing | 26,887 | 27,048 | 27,994 | 27,458 | 28,042 | 28,677 | 33,866 | 33,189 | ||||||||||||||||||||||||||||||||||||||||||
| General and administrative | ||||||||||||||||||||||||||||||||||||||||||||||||||
| GAAP general and administrative | 45,885 | 33,461 | 35,494 | 28,609 | 29,281 | 29,554 | 29,543 | 32,481 | ||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | (16,134) | (16,686) | (17,333) | (10,866) | (10,198) | (8,393) | (7,717) | (7,959) | ||||||||||||||||||||||||||||||||||||||||||
| Executive transition costs | — | — | — | — | — | — | — | (4,207) | ||||||||||||||||||||||||||||||||||||||||||
| Acquisition-related expenses | (13,625) | (929) | (1,298) | (179) | (149) | (58) | (1,912) | — | ||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP general and administrative | 16,126 | 15,846 | 16,863 | 17,564 | 18,934 | 21,103 | 19,914 | 20,315 | ||||||||||||||||||||||||||||||||||||||||||
| Operating loss | ||||||||||||||||||||||||||||||||||||||||||||||||||
| GAAP operating loss | (57,344) | (49,963) | (57,468) | (54,934) | (56,656) | (63,004) | (68,968) | (65,765) | ||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | 29,681 | 30,838 | 33,426 | 36,636 | 39,588 | 40,022 | 34,978 | 36,345 | ||||||||||||||||||||||||||||||||||||||||||
| Executive transition costs | — | — | — | — | — | — | — | 4,207 | ||||||||||||||||||||||||||||||||||||||||||
| Amortization of acquired intangible assets | 5,078 | 5,291 | 5,184 | 5,184 | 5,185 | 5,184 | 5,185 | 5,372 | ||||||||||||||||||||||||||||||||||||||||||
| Acquisition-related expenses | 13,625 | 929 | 1,298 | 179 | 149 | 58 | 1,912 | — | ||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP operating loss | (8,960) | (12,905) | (17,560) | (12,935) | (11,734) | (17,740) | (26,893) | (19,841) | ||||||||||||||||||||||||||||||||||||||||||
| Net loss | ||||||||||||||||||||||||||||||||||||||||||||||||||
| GAAP net loss | (45,704) | (50,683) | (58,295) | (56,198) | (57,521) | (64,264) | (16,437) | (63,420) | ||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | 29,681 | 30,838 | 33,426 | 36,636 | 39,588 | 40,022 | 34,978 | 36,345 | ||||||||||||||||||||||||||||||||||||||||||
| Executive transition costs | — | — | — | — | — | — | — | 4,207 | ||||||||||||||||||||||||||||||||||||||||||
| Amortization of acquired intangible assets | 5,078 | 5,291 | 5,184 | 5,184 | 5,185 | 5,184 | 5,185 | 5,372 | ||||||||||||||||||||||||||||||||||||||||||
| Acquisition-related expenses | 13,625 | 929 | 1,298 | 179 | 149 | 58 | 1,912 | — | ||||||||||||||||||||||||||||||||||||||||||
| Acquisition-related tax benefit | (13,154) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Net gain on extinguishment of debt | — | — | — | — | — | — | (54,391) | — | ||||||||||||||||||||||||||||||||||||||||||
| Amortization of debt issuance costs | — | — | 993 | 967 | 947 | 963 | 776 | 714 | ||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP net loss | $ | (10,474) | $ | (13,625) | $ | (17,394) | $ | (13,232) | $ | (11,652) | $ | (18,037) | $ | (27,977) | $ | (16,782) | ||||||||||||||||||||||||||||||||||
| GAAP net loss per common share—basic and diluted | $ | (0.40) | $ | (0.44) | $ | (0.51) | $ | (0.48) | $ | (0.49) | $ | (0.54) | $ | (0.14) | $ | (0.52) | ||||||||||||||||||||||||||||||||||
| Non-GAAP net loss per common share—basic and diluted | $ | (0.09) | $ | (0.12) | $ | (0.15) | $ | (0.11) | $ | (0.10) | $ | (0.15) | $ | (0.23) | $ | (0.14) | ||||||||||||||||||||||||||||||||||
| Weighted average basic common shares | 112,902 | 114,134 | 115,326 | 116,475 | 118,161 | 119,673 | 121,242 | 122,339 | ||||||||||||||||||||||||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures - Quarterly (Continued)
(unaudited, in thousands, except per share amounts)
| Q4 2020 | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | Q1 2022 | Q2 2022 | Q3 2022 | |||||||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | ||||||||||||||||||||||||||||||||||||||||||||||||||
| GAAP net loss | $ | (45,704) | $ | (50,683) | $ | (58,295) | $ | (56,198) | $ | (57,521) | $ | (64,264) | $ | (16,437) | $ | (63,420) | ||||||||||||||||||||||||||||||||||
| Stock-based compensation | 29,681 | 30,838 | 33,426 | 36,636 | 39,588 | 40,022 | 34,978 | 36,345 | ||||||||||||||||||||||||||||||||||||||||||
| Executive transition costs | — | — | — | — | — | — | — | 4,207 | ||||||||||||||||||||||||||||||||||||||||||
| Depreciation and other amortization | 5,568 | 6,491 | 7,000 | 7,489 | 8,228 | 9,975 | 10,860 | 10,786 | ||||||||||||||||||||||||||||||||||||||||||
| Amortization of acquired intangible assets | 5,078 | 5,291 | 5,184 | 5,184 | 5,185 | 5,184 | 5,185 | 5,372 | ||||||||||||||||||||||||||||||||||||||||||
| Acquisition-related expenses | 13,625 | 929 | 1,298 | 179 | 149 | 58 | 1,912 | — | ||||||||||||||||||||||||||||||||||||||||||
| Acquisition-related tax benefit | (13,154) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Interest income | (178) | (174) | (276) | (280) | (552) | (681) | (1,502) | (1,967) | ||||||||||||||||||||||||||||||||||||||||||
| Interest expense | 452 | 661 | 443 | 588 | 646 | 659 | 754 | 667 | ||||||||||||||||||||||||||||||||||||||||||
| Amortization of debt discount and issuance costs | — | — | 993 | 967 | 947 | 963 | 776 | 714 | ||||||||||||||||||||||||||||||||||||||||||
| Net gain on extinguishment of debt | — | — | — | — | — | — | (54,391) | — | ||||||||||||||||||||||||||||||||||||||||||
| Other (income) expense, net | 697 | 64 | (178) | (41) | (201) | 279 | 1,673 | (1,877) | ||||||||||||||||||||||||||||||||||||||||||
| Income tax (benefit) expense | 543 | 169 | (155) | 30 | 25 | 40 | 159 | 118 | ||||||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | (3,392) | $ | (6,414) | $ | (10,560) | $ | (5,446) | $ | (3,506) | $ | (7,765) | $ | (16,033) | $ | (9,055) | ||||||||||||||||||||||||||||||||||
Non-GAAP Consolidated Statements of Operations - Quarterly
(unaudited, in thousands, except per share amounts)
| Q4 2020 | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | Q1 2022 | Q2 2022 | Q3 2022 | |||||||||||||||||||||||||||||||||||||||||||
| Revenue | $ | 82,649 | $ | 84,852 | $ | 85,026 | $ | 86,735 | $ | 97,717 | $ | 102,382 | $ | 102,518 | $ | 108,504 | ||||||||||||||||||||||||||||||||||
Cost of revenue (1)(2) | 30,023 | 33,833 | 36,017 | 36,872 | 43,153 | 48,494 | 50,803 | 50,372 | ||||||||||||||||||||||||||||||||||||||||||
| Gross profit | 52,626 | 51,019 | 49,009 | 49,863 | 54,564 | 53,888 | 51,715 | 58,132 | ||||||||||||||||||||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Research and development(1) | 18,573 | 21,030 | 21,712 | 17,776 | 19,322 | 21,848 | 24,828 | 24,469 | ||||||||||||||||||||||||||||||||||||||||||
Sales and marketing(1)(2) | 26,887 | 27,048 | 27,994 | 27,458 | 28,042 | 28,677 | 33,866 | 33,189 | ||||||||||||||||||||||||||||||||||||||||||
General and administrative (1)(3)(7) | 16,126 | 15,846 | 16,863 | 17,564 | 18,934 | 21,103 | 19,914 | 20,315 | ||||||||||||||||||||||||||||||||||||||||||
| Total operating expenses | 61,586 | 63,924 | 66,569 | 62,798 | 66,298 | 71,628 | 78,608 | 77,973 | ||||||||||||||||||||||||||||||||||||||||||
Income (loss) from operations(1)(2)(3)(7) | (8,960) | (12,905) | (17,560) | (12,935) | (11,734) | (17,740) | (26,893) | (19,841) | ||||||||||||||||||||||||||||||||||||||||||
| Interest income | 178 | 174 | 276 | 280 | 552 | 681 | 1,502 | 1,967 | ||||||||||||||||||||||||||||||||||||||||||
Interest expense(4) | (452) | (661) | (443) | (588) | (646) | (659) | (754) | (667) | ||||||||||||||||||||||||||||||||||||||||||
| Other income (expense), net | (697) | (64) | 178 | 41 | 201 | (279) | (1,673) | 1,877 | ||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income tax expense (benefit)(5) | (9,931) | (13,456) | (17,549) | (13,202) | (11,627) | (17,997) | (27,818) | (16,664) | ||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit)(6) | 543 | 169 | (155) | 30 | 25 | 40 | 159 | 118 | ||||||||||||||||||||||||||||||||||||||||||
Net income (loss)(1)(2)(3)(4)(5)(6)(7) | $ | (10,474) | $ | (13,625) | $ | (17,394) | $ | (13,232) | $ | (11,652) | $ | (18,037) | $ | (27,977) | $ | (16,782) | ||||||||||||||||||||||||||||||||||
| Net income (loss) per share attributable to common stockholders, basic and diluted | $ | (0.09) | $ | (0.12) | $ | (0.15) | $ | (0.11) | $ | (0.10) | $ | (0.15) | $ | (0.23) | $ | (0.14) | ||||||||||||||||||||||||||||||||||
| Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, basic and diluted | 112,902 | 114,134 | 115,326 | 116,475 | 118,161 | 119,673 | 121,242 | 122,339 | ||||||||||||||||||||||||||||||||||||||||||
(1) Excludes stock-based compensation. See GAAP to Non-GAAP reconciliations.
(2) Excludes amortization of acquired intangible assets. See GAAP to Non-GAAP reconciliations.
(3) Excludes acquisition-related and other expenses. See GAAP to Non-GAAP reconciliations.
(4) Excludes amortization of debt discount and issuance costs. See GAAP to Non-GAAP reconciliations.
(5) Excludes net gain on extinguishment of debt. See GAAP to Non-GAAP reconciliations.
(6) Excludes acquisition-related tax benefit. See GAAP to Non-GAAP reconciliations.
(7) Excludes executive transition costs. See GAAP to Non-GAAP reconciliations.
Consolidated Balance Sheets - Quarterly
(unaudited, in thousands)
| Q4 2020 | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | Q1 2022 | Q2 2022 | Q3 2022 | |||||||||||||||||||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Current assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 62,900 | $ | 948,783 | $ | 687,986 | $ | 282,131 | $ | 166,068 | $ | 245,794 | $ | 62,510 | $ | 87,897 | ||||||||||||||||||||||||||||||||||
| Marketable securities | 131,283 | 147,793 | 241,744 | 361,290 | 361,795 | 393,950 | 419,905 | 445,048 | ||||||||||||||||||||||||||||||||||||||||||
| Accounts receivable, net | 50,258 | 52,363 | 56,065 | 54,234 | 64,625 | 73,717 | 68,218 | 72,914 | ||||||||||||||||||||||||||||||||||||||||||
| Prepaid expenses and other current assets | 16,815 | 18,495 | 22,309 | 22,230 | 32,160 | 23,616 | 29,037 | 31,321 | ||||||||||||||||||||||||||||||||||||||||||
| Total current assets | 261,256 | 1,167,434 | 1,008,104 | 719,885 | 624,648 | 737,077 | 579,670 | 637,180 | ||||||||||||||||||||||||||||||||||||||||||
| Property and equipment, net | 95,979 | 98,608 | 116,471 | 147,729 | 166,961 | 174,550 | 173,950 | 179,080 | ||||||||||||||||||||||||||||||||||||||||||
| Operating lease right-of-use assets, net | 60,019 | 63,305 | 62,630 | 70,149 | 69,631 | 63,455 | 69,861 | 72,374 | ||||||||||||||||||||||||||||||||||||||||||
| Goodwill | 635,590 | 635,645 | 635,646 | 635,635 | 636,805 | 637,570 | 670,186 | 670,158 | ||||||||||||||||||||||||||||||||||||||||||
| Intangible assets, net | 121,742 | 116,379 | 113,215 | 107,905 | 102,596 | 97,287 | 93,978 | 88,482 | ||||||||||||||||||||||||||||||||||||||||||
| Marketable securities, non-current | 20,448 | 29,930 | 173,227 | 429,489 | 528,911 | 394,464 | 284,951 | 186,066 | ||||||||||||||||||||||||||||||||||||||||||
| Other assets | 24,917 | 26,993 | 27,578 | 28,142 | 29,468 | 30,020 | 60,199 | 73,258 | ||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 1,219,951 | $ | 2,138,294 | $ | 2,136,871 | $ | 2,138,934 | $ | 2,159,020 | $ | 2,134,423 | $ | 1,932,795 | $ | 1,906,598 | ||||||||||||||||||||||||||||||||||
| Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Current liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounts payable | $ | 9,150 | $ | 12,019 | $ | 10,202 | $ | 7,766 | $ | 9,257 | $ | 8,248 | $ | 10,011 | $ | 8,265 | ||||||||||||||||||||||||||||||||||
| Accrued expenses | 34,334 | 36,320 | 28,609 | 36,063 | 36,112 | 49,902 | 49,943 | 54,186 | ||||||||||||||||||||||||||||||||||||||||||
| Finance lease liabilities | 11,033 | 10,910 | 14,773 | 18,675 | 21,125 | 26,766 | 28,088 | 27,807 | ||||||||||||||||||||||||||||||||||||||||||
| Operating lease liabilities | 19,895 | 20,011 | 19,713 | 20,007 | 20,271 | 18,688 | 19,243 | 20,919 | ||||||||||||||||||||||||||||||||||||||||||
| Other current liabilities | 19,677 | 19,036 | 29,735 | 24,758 | 45,107 | 36,569 | 33,705 | 33,422 | ||||||||||||||||||||||||||||||||||||||||||
| Total current liabilities | 94,089 | 98,296 | 103,032 | 107,269 | 131,872 | 140,173 | 140,990 | 144,599 | ||||||||||||||||||||||||||||||||||||||||||
| Long-term debt, less current portion | — | 930,291 | 931,385 | 932,305 | 933,205 | 934,121 | 703,375 | 704,042 | ||||||||||||||||||||||||||||||||||||||||||
| Finance lease liabilities, noncurrent | 14,707 | 13,648 | 19,685 | 24,659 | 22,293 | 28,867 | 26,479 | 21,027 | ||||||||||||||||||||||||||||||||||||||||||
| Operating lease liabilities, noncurrent | 44,890 | 47,505 | 47,177 | 54,066 | 55,114 | 52,334 | 60,657 | 62,750 | ||||||||||||||||||||||||||||||||||||||||||
| Other long-term liabilities | 4,400 | 3,520 | 6,502 | 5,056 | 2,583 | 2,205 | 7,556 | 7,201 | ||||||||||||||||||||||||||||||||||||||||||
| Total liabilities | 158,086 | 1,093,260 | 1,107,781 | 1,123,355 | 1,145,067 | 1,157,700 | 939,057 | 939,619 | ||||||||||||||||||||||||||||||||||||||||||
| Stockholders’ equity: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Class A and Class B common stock | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | ||||||||||||||||||||||||||||||||||||||||||
| Additional paid-in capital | 1,350,050 | 1,384,045 | 1,426,520 | 1,469,366 | 1,527,468 | 1,561,371 | 1,597,869 | 1,634,666 | ||||||||||||||||||||||||||||||||||||||||||
| Accumulated other comprehensive income (loss) | 6 | (137) | (261) | (420) | (2,627) | (9,496) | (12,542) | (12,678) | ||||||||||||||||||||||||||||||||||||||||||
| Accumulated deficit | (288,193) | (338,876) | (397,171) | (453,369) | (510,890) | (575,154) | (591,591) | (655,011) | ||||||||||||||||||||||||||||||||||||||||||
| Total stockholders’ equity | 1,061,865 | 1,045,034 | 1,029,090 | 1,015,579 | 1,013,953 | 976,723 | 993,738 | 966,979 | ||||||||||||||||||||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 1,219,951 | $ | 2,138,294 | $ | 2,136,871 | $ | 2,138,934 | $ | 2,159,020 | $ | 2,134,423 | $ | 1,932,795 | $ | 1,906,598 | ||||||||||||||||||||||||||||||||||
Consolidated Statements of Cash Flows – Quarterly
(unaudited, in thousands)
| Q4 2020 | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | Q1 2022 | Q2 2022 | Q3 2022 | |||||||||||||||||||||||||||||||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net loss | $ | (45,704) | $ | (50,683) | $ | (58,295) | $ | (56,198) | $ | (57,521) | $ | (64,264) | $ | (16,437) | $ | (63,420) | ||||||||||||||||||||||||||||||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 5,713 | 6,419 | 6,927 | 7,364 | 8,089 | 9,850 | 10,736 | 10,662 | ||||||||||||||||||||||||||||||||||||||||||
| Amortization of acquired intangibles | 4,933 | 5,363 | 5,257 | 5,309 | 5,309 | 5,309 | 5,309 | 5,496 | ||||||||||||||||||||||||||||||||||||||||||
| Amortization of right-of-use assets and other | 5,941 | 6,357 | 6,303 | 7,158 | 7,065 | 6,839 | 6,539 | 8,501 | ||||||||||||||||||||||||||||||||||||||||||
| Amortization of debt issuance costs | 161 | 332 | 937 | 966 | 950 | 964 | 775 | 715 | ||||||||||||||||||||||||||||||||||||||||||
| Amortization of deferred contract costs | 1,141 | 1,411 | 1,535 | 1,621 | 1,727 | 1,851 | 2,138 | 2,031 | ||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | 29,681 | 30,838 | 33,426 | 36,636 | 39,588 | 40,022 | 34,978 | 39,378 | ||||||||||||||||||||||||||||||||||||||||||
| Provision for doubtful accounts and credit losses | 507 | (420) | 225 | 236 | 155 | 127 | 402 | 1,253 | ||||||||||||||||||||||||||||||||||||||||||
| Interest paid on finance leases | (234) | (330) | (405) | (524) | (495) | (591) | (649) | (603) | ||||||||||||||||||||||||||||||||||||||||||
| (Gain) loss on disposal of property and equipment | 786 | 27 | — | (204) | (123) | 268 | 586 | — | ||||||||||||||||||||||||||||||||||||||||||
| Tax benefit related to release of valuation allowance | (12,950) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Amortization and accretion of discounts and premiums on investments | — | — | — | — | — | 957 | 894 | 771 | ||||||||||||||||||||||||||||||||||||||||||
| Net gain on extinguishment of debt | — | — | — | — | — | — | (54,391) | — | ||||||||||||||||||||||||||||||||||||||||||
| Other adjustments | 448 | 64 | 749 | 683 | 729 | 128 | (67) | (353) | ||||||||||||||||||||||||||||||||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounts receivable | (2,595) | (1,685) | (3,927) | 1,595 | (10,546) | (9,219) | 5,097 | (5,949) | ||||||||||||||||||||||||||||||||||||||||||
| Prepaid expenses and other current assets | (1,772) | (1,680) | (3,814) | (8) | 725 | (2,111) | (2,701) | (975) | ||||||||||||||||||||||||||||||||||||||||||
| Other assets | (9,752) | (2,952) | (2,137) | (2,231) | (3,103) | (2,451) | (3,948) | (13,505) | ||||||||||||||||||||||||||||||||||||||||||
| Accounts payable | (2,987) | 2,119 | (1,957) | (1,815) | 1,799 | (2,492) | 3,336 | (4,301) | ||||||||||||||||||||||||||||||||||||||||||
| Accrued expenses | (4,232) | (755) | (3,080) | 6,548 | 1,548 | 4,891 | (3,729) | 3,328 | ||||||||||||||||||||||||||||||||||||||||||
| Operating lease liabilities | (5,412) | (6,365) | (6,491) | (6,879) | (6,712) | (6,557) | (6,280) | (7,830) | ||||||||||||||||||||||||||||||||||||||||||
| Other liabilities | 5,178 | 1,071 | 7,733 | (2,948) | 2,908 | 3,289 | 732 | (2,833) | ||||||||||||||||||||||||||||||||||||||||||
| Net cash provided by (used in) operating activities | (31,149) | (10,869) | (17,014) | (2,691) | (7,908) | (13,190) | (16,680) | (27,634) | ||||||||||||||||||||||||||||||||||||||||||
| Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Purchase of marketable securities | (64,698) | (64,331) | (269,537) | (443,701) | (150,586) | (148,193) | (207,286) | — | ||||||||||||||||||||||||||||||||||||||||||
| Sale of marketable securities | — | 12,497 | — | 51,739 | 2,291 | 2,301 | 159,552 | — | ||||||||||||||||||||||||||||||||||||||||||
| Maturities of marketable securities | 5,001 | 25,503 | 31,750 | 15,600 | 45,232 | 240,547 | 127,333 | 72,857 | ||||||||||||||||||||||||||||||||||||||||||
| Business acquisitions, net of cash acquired | (200,988) | — | — | — | (1,169) | (775) | (25,224) | (1,746) | ||||||||||||||||||||||||||||||||||||||||||
| Advance for purchase of property and equipment | — | — | — | — | — | — | (29,310) | (1,964) | ||||||||||||||||||||||||||||||||||||||||||
| Purchases of property and equipment | (5,126) | (8,079) | (2,934) | (20,254) | (3,549) | (4,664) | (4,151) | (2,631) | ||||||||||||||||||||||||||||||||||||||||||
| Proceeds from sale of property and equipment | 425 | — | — | 291 | 297 | — | 241 | 125 | ||||||||||||||||||||||||||||||||||||||||||
| Capitalized internal-use software | (2,049) | (989) | (1,691) | (7,619) | (3,180) | (3,810) | (4,926) | (5,120) | ||||||||||||||||||||||||||||||||||||||||||
| Purchases of intangible assets | — | — | (2,093) | 1 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Net cash provided by (used in) investing activities | (267,435) | (35,399) | (244,505) | (403,943) | (110,664) | 85,406 | 16,229 | 61,521 | ||||||||||||||||||||||||||||||||||||||||||
| Cash flows from financing activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of convertible note, net of issuance costs | — | 930,775 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Payments of debt issuance costs | — | (1,351) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Repayments of notes payable | (20,300) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Net Cash paid for debt extinguishment | — | — | — | — | — | — | (177,082) | — | ||||||||||||||||||||||||||||||||||||||||||
| Repayments of finance lease liabilities | (2,713) | (2,951) | (3,628) | (3,985) | (3,004) | (4,882) | (6,147) | (7,076) | ||||||||||||||||||||||||||||||||||||||||||
| Cash received for restricted stock sold in advance of vesting conditions | — | — | — | — | — | 10,655 | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Cash paid for early sale of restricted shares | — | — | — | — | — | (3,498) | (3,539) | (3,618) | ||||||||||||||||||||||||||||||||||||||||||
| Proceeds from exercise of vested stock options | 2,320 | 2,719 | 2,886 | 3,489 | 3,532 | 3,048 | 1,721 | 555 | ||||||||||||||||||||||||||||||||||||||||||
| Proceeds from Employee Stock Purchase Plan | 3,112 | 3,071 | 1,493 | 1,430 | 2,075 | 2,406 | 1,571 | 1,749 | ||||||||||||||||||||||||||||||||||||||||||
| Net cash provided by (used in) financing activities | (17,581) | 932,263 | 751 | 934 | 2,603 | 7,729 | (183,476) | (8,390) | ||||||||||||||||||||||||||||||||||||||||||
| Effects of exchange rate changes on cash, cash equivalents, and restricted cash | (10) | (112) | (29) | (242) | (94) | (219) | (100) | (110) | ||||||||||||||||||||||||||||||||||||||||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | (316,175) | 885,883 | (260,797) | (405,942) | (116,063) | 79,726 | (184,027) | 25,387 | ||||||||||||||||||||||||||||||||||||||||||
| Cash, cash equivalents, and restricted cash at beginning of period | 380,055 | 63,880 | 949,763 | 688,966 | 283,024 | 166,961 | 246,687 | 62,660 | ||||||||||||||||||||||||||||||||||||||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 63,880 | $ | 949,763 | $ | 688,966 | $ | 283,024 | $ | 166,961 | $ | 246,687 | $ | 62,660 | $ | 88,047 | ||||||||||||||||||||||||||||||||||
Free Cash Flow
(in thousands, unaudited)
| Quarter ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Q4 2020 | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | Q1 2022 | Q2 2022 | Q3 2022 | |||||||||||||||||||||||||||||||||||||||||||
| Cash flow provided by (used in) operations | $ | (31,149) | $ | (10,869) | $ | (17,014) | $ | (2,691) | $ | (7,908) | $ | (13,190) | $ | (16,680) | $ | (27,634) | ||||||||||||||||||||||||||||||||||
Capital expenditures(1) | (9,463) | (12,019) | (8,253) | (31,567) | (9,436) | (13,356) | (14,983) | (14,702) | ||||||||||||||||||||||||||||||||||||||||||
Advance payment for purchase of property and equipment(2) | — | — | — | — | — | — | (29,310) | (1,964) | ||||||||||||||||||||||||||||||||||||||||||
| Free Cash Flow | $ | (40,612) | $ | (22,888) | $ | (25,267) | $ | (34,258) | $ | (17,344) | $ | (26,546) | $ | (60,973) | $ | (44,300) | ||||||||||||||||||||||||||||||||||
__________
(1)Capital Expenditures are defined as cash used for purchases of property and equipment, net of proceeds from sale of property and equipment, and capitalized internal-use software and payments on finance lease obligations, as reflected in our statement of cash flows.
(2)Advance payments for purchase of property and equipment relate to prepayments made for our capital expenditures in advance of receiving the asset, as reflected in our statement of cash flows.