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Exhibit 99.1
EngageSmart Announces Second Quarter 2023 Results
Second Quarter 2023 Revenue of $94.4 million, up 28% year over year
Second Quarter 2023 Net Income of $4.3 million and Adjusted EBITDA of $19.4 million
Announces Strategic Purchase of Assets of Luminello, an Electronic Medical Record and Practice Management Platform Primarily for Psychiatrists
Announces Sale of Enterprise Solution HealthPay24
BOSTON - August 3, 2023 - EngageSmart, Inc. (NYSE: ESMT), a leading provider of vertically tailored customer engagement software and integrated payments solutions, today reported financial results for the second quarter ended June 30, 2023.
“Extending our proven track record of success, we achieved another remarkable quarter and delivered record revenue of $94.4 million, net income of $4.3 million, and adjusted EBITDA of $19.4 million. Our excellent results in both SMB and Enterprise demonstrate our ability to balance sustainable top-line growth with strong profitability, and they underscore the durability of our business model. With our teammates' relentless execution and our attractive market position in defensive verticals, we are well positioned for continued success,” said Bob Bennett, EngageSmart CEO. “In addition, we achieved two strategic accomplishments, including the acquisition of assets of Luminello, an electronic medical record and practice management platform for mental health prescribers, as well as the sale of the HealthPay24 solution to Waystar. Both strategic decisions reinforce our commitment to enhance our offerings and deliver exceptional value to customers."
“We are thrilled to build upon our leadership position in the mental health market with the Luminello deal,” added Cassandra Hudson, EngageSmart CFO. “We believe that Luminello’s compelling market position and functionality combined with SimplePractice’s deep expertise in mental health will enable us to expand our share of the high-value, psychiatric prescriber market and accelerate growth with multi-disciplinary group practices, while offering a greater range of functionality for our growing practitioner base. At the same time, the sale of HealthPay24 enables us to focus on the solutions with the highest growth potential for us."
Second Quarter 2023 Financial and Business Performance
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____________________
1Reconciliations of GAAP to non-GAAP financial measures, including Adjusted Gross Profit, Adjusted Gross Margin, Adjusted EBITDA, and Adjusted EBITDA Margin, as well as definitions for the non-GAAP financial measures included in this press release and the reasons for their use, are presented below.
Financial Outlook
|
| Q3'23 |
| FY'23 |
|
| Guidance |
| Guidance |
Revenue (in millions) |
| $95.0 - $96.0 |
| $376.5 - $379.0 |
Adjusted EBITDA (in millions) |
| $14.7 - $15.2 |
| $69.5 - $70.5 |
With the information available as of August 3, 2023, we are providing the above guidance for the third quarter and full year of 2023, based on current market conditions and expectations. This guidance takes into consideration the Luminello deal and the sale of HealthPay24 and is subject to various important cautionary factors referenced in the “Forward-Looking Statements” section below.
We do not provide a reconciliation of Adjusted EBITDA guidance to net income on a forward-looking basis due to difficulty in predicting certain items excluded from this non-GAAP financial measure; specifically, stock-based compensation, provision for (benefit from) income taxes and transaction-related expenses. We expect the variability of these excluded items may have a significant, and potentially unpredictable impact on our future GAAP financial results.
Raymond James served as investment banking advisor to EngageSmart on the sale of HealthPay24.
Webcast and Conference Call Information
EngageSmart, Inc. (NYSE: ESMT), a leading provider of vertically tailored customer engagement software and integrated payments solutions, will report second quarter 2023 financial results before the market opens on Thursday, August 3, 2023. Management will host a conference call to discuss the results at 8:30 a.m. ET.
The conference call will be webcast live on EngageSmart’s investor relations website at https://investors.engagesmart.com/events-and-presentations/events/. A replay will be available on the investor relations website following the call.
For investors and analysts wishing to participate in the call, the dial-in numbers are (800) 445-7795 for domestic callers and (785) 424-1699 for international callers. The conference ID is ENGAGESMART, and the program title is EngageSmart Q2 2023 Earnings Call.
About EngageSmart
EngageSmart is a leading provider of vertically tailored customer engagement software and integrated payments solutions. At EngageSmart, our mission is to simplify customer and client engagement to allow our customers to focus resources on initiatives that improve their businesses and better serve their communities. EngageSmart offers single instance, multi-tenant, true Software-as-a-Service (“SaaS”) vertical solutions, including SimplePractice, InvoiceCloud and DonorDrive, that are designed to simplify our customers’ engagement with their clients by driving digital adoption and self-service. As of June 30, 2023, EngageSmart serves 109,700 customers in the SMB Solutions segment and 3,400 customers in the Enterprise Solutions segment across several core verticals: Health & Wellness, Government, Utilities, Financial Services, Healthcare and Giving. For more information, visit www.engagesmart.com and follow us on LinkedIn.
Forward-Looking Statements
Certain statements in this release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on current expectations and assumptions that are subject to risks and uncertainties. All statements contained in this news release that do not relate to matters of historical fact should be considered
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forward-looking statements, and are generally identified by words such as “expect,” “intend,” “anticipate,” “estimate,” “believe,” “future,” “could,” “should,” “plan,” “aim,” and other similar expressions. These forward-looking statements include, but are not limited to, statements regarding anticipated financial performance and financial position, including our financial outlook for the third quarter and full year 2023 and thereafter, and other statements that are not historical facts. These forward-looking statements are neither promises nor guarantees, but involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. Our actual results could differ materially from those anticipated in these forward-looking statements for many reasons, including, but not limited to, the following: our inability to sustain our rapid growth; failure to manage our infrastructure to support our future growth; our risk management efforts not being effective to prevent fraudulent activities; inability to attract new customers or convert trial customers into paying customers; inability to introduce new features or services successfully or to enhance our solutions; declines in customer renewals or failure to convince customers to broaden their use of solutions; inability to achieve or sustain profitability; failure to adapt and respond effectively to rapidly changing technology, evolving industry standards and regulations and changing business needs, requirements or preferences; real or perceived errors, failures or bugs in our solutions; intense competition; lack of success in establishing, growing or maintaining strategic partnerships; fluctuations in quarterly operating results; future acquisitions and investments diverting management’s attention and difficulties associated with integrating such acquired businesses; general economic conditions (including inflation and rising interest rates), both domestically and internationally, as well as economic conditions affecting industries in which our customers operate; the war in Ukraine; concentration of revenue in our InvoiceCloud and SimplePractice solutions; COVID-19 pandemic and its impact on our employees, customers, partners, clients and other key stakeholders; legal and regulatory risks; and technology and intellectual property-related risks, among others.
Other important risk factors that could affect the outcome of the events set forth in these statements and that could affect the Company’s operating results and financial condition are discussed in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2022, and our subsequent Quarterly Reports on Form 10-Q, as updated by our future filings with the Securities and Exchange Commission (“SEC”). Such statements are based on the Company’s beliefs and assumptions and on information currently available to the Company. The Company disclaims any obligation to publicly update or revise any such forward-looking statements as a result of developments occurring after the date of this document except as required by law.
Non-GAAP Financial Measures
This press release includes certain performance metrics and financial measures not based on GAAP, including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Profit, Adjusted Gross Margin, Non-GAAP Operating Expenses, and Free Cash Flow, as well as key business metrics, including total Number of Customers and total Transactions Processed.
Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Profit, Adjusted Gross Margin, Non-GAAP Operating Expenses, and Free Cash Flow are supplemental measures of our performance that are not required by, or presented in accordance with, GAAP and should not be considered as an alternative to net income, net income margin, gross profit, gross margin, operating expenses, net cash provided by operating activities or any other performance measure derived in accordance with GAAP.
We define Adjusted EBITDA as net income excluding interest income (expense), net; provision for (benefit from) income taxes; depreciation; and amortization of intangible assets, as further adjusted for transaction-related expenses and stock-based compensation. Transaction-related expenses typically consist of direct costs related to acquisitions, divestitures, and other strategic activities which are excluded from our non-GAAP measures because they relate to specific transactions which are not reflective of our ongoing operations. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue.
We define Adjusted Gross Profit as gross profit as adjusted for amortization of intangible assets and stock-based compensation. We define Adjusted Gross Margin as Adjusted Gross Profit divided by revenue.
We define Non-GAAP Operating Expenses as GAAP operating expenses excluding stock-based compensation and transaction-related expenses. We define Non-GAAP Operating Expenses as a percentage of revenue as Non-GAAP Operating Expenses divided by revenue.
We define Free Cash Flow as net cash provided by operating activities less purchases of property and equipment, including costs capitalized for development of internal-use software.
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We define Number of Customers as individuals or entities with whom we directly contract to use our solutions.
We define Transactions Processed as the number of accepted payment transactions, such as credit card and debit card transactions, automated clearing house (“ACH”) payments, emerging electronic payments, other communication, text messaging and interactive voice response transactions, and other payment transaction types, which are facilitated through our platform during a given period. We believe Transactions Processed is a key business metric for investors because it directly correlates with transaction and usage-based revenue. We use Transactions Processed to evaluate changes in transaction and usage-based revenue over time.
We caution investors that amounts presented in accordance with our definitions of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Profit, Adjusted Gross Margin, Non-GAAP Operating Expenses, and Free Cash Flow may not be comparable to similar measures disclosed by our competitors because not all companies and analysts calculate these non-GAAP financial measures in the same manner. We present these non-GAAP financial measures because we consider these metrics to be important supplemental measures of our performance and believe they are frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. Management believes that investors’ understanding of our performance is enhanced by including these non-GAAP financial measures as a reasonable basis for comparing our ongoing results of operations.
Non-GAAP financial measures assist management in assessing operating performance by removing the impact of items not directly resulting from our core operations, to present operating results on a consistent basis. Management uses these non-GAAP financial measures for planning purposes, including the preparation of our internal annual operating budget and financial projections; to evaluate the performance and effectiveness of our operational strategies; and to evaluate our capacity to expand our business. These non-GAAP financial measures have limitations as analytical tools, and should not be considered in isolation, or as an alternative to, or a substitute for net income, net income margin, gross profit, gross margin, operating expenses, net cash provided by operating activities, or other financial statement data presented in accordance with GAAP in our consolidated financial statements.
Disclosure
We disclose information to the public concerning EngageSmart, EngageSmart’s products and services, and other items through a variety of disclosure channels in order to achieve broad, non-exclusionary distribution of information to the public. Some of the information distributed through these disclosure channels may be considered material information. Investors and others are encouraged to review the information we make public in the locations below.* This list may be updated from time to time.
*For information concerning EngageSmart and its products and services, please visit: www.engagesmart.com
*For information provided to the investment community, including news releases, events and presentations, and SEC filings, please visit: investors.engagesmart.com/overview/default.aspx
*For information provided to the media, including news releases, please visit: investors.engagesmart.com/news/default.aspx
*For additional information, please follow EngageSmart’s social media accounts: www.twitter.com/engagesmartinc, www.facebook.com/EngageSmartInc, and www.linkedin.com/company/engagesmart
Investor Relations
Josh Schmidt
EngageSmart, Inc.
IR@engagesmart.com
Press:
Nicole Bestard
Quarter Horse PR
Engagesmart@qh-pr.com
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EngageSmart, Inc.
Condensed Consolidated Statement of Operations
(Unaudited, in thousands, except share and per share amounts)
|
| Three Months Ended June 30, |
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| Six Months Ended June 30, |
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|
| 2023 |
|
| 2022 |
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| 2023 |
|
| 2022 |
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Revenue |
| $ | 94,409 |
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| $ | 73,862 |
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| $ | 182,841 |
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| $ | 141,224 |
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Cost of revenue |
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| 21,637 |
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| 17,803 |
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| 42,536 |
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| 33,842 |
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Gross profit |
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| 72,772 |
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| 56,059 |
|
|
| 140,305 |
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| 107,382 |
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Operating expenses: |
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General and administrative |
|
| 14,456 |
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| 14,997 |
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| 29,863 |
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| 28,284 |
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Selling and marketing |
|
| 30,421 |
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|
| 23,692 |
|
|
| 59,547 |
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|
| 46,356 |
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Research and development |
|
| 16,693 |
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|
| 10,993 |
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|
| 31,513 |
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|
| 21,033 |
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Amortization of intangible assets |
|
| 2,362 |
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|
| 2,362 |
|
|
| 4,724 |
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|
| 4,724 |
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Total operating expenses |
|
| 63,932 |
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|
| 52,044 |
|
|
| 125,647 |
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|
| 100,397 |
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Income from operations |
|
| 8,840 |
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|
| 4,015 |
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|
| 14,658 |
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| 6,985 |
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Other income (expense), net: |
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Interest expense |
|
| (121 | ) |
|
| (121 | ) |
|
| (240 | ) |
|
| (240 | ) |
Other income, net |
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| 3,322 |
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|
| 322 |
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|
| 5,861 |
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|
| 350 |
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Total other income (expense), net |
|
| 3,201 |
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|
| 201 |
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|
| 5,621 |
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| 110 |
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Income before income taxes |
|
| 12,041 |
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|
| 4,216 |
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|
| 20,279 |
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|
| 7,095 |
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Provision for (benefit from) income taxes |
|
| 7,703 |
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|
| (2,663 | ) |
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| 11,817 |
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| (1,843 | ) |
Net income and comprehensive income |
| $ | 4,338 |
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| $ | 6,879 |
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| $ | 8,462 |
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| $ | 8,938 |
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Net income per share: |
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Basic |
| $ | 0.03 |
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| $ | 0.04 |
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| $ | 0.05 |
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| $ | 0.05 |
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Diluted |
| $ | 0.03 |
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| $ | 0.04 |
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| $ | 0.05 |
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| $ | 0.05 |
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Weighted-average number of shares outstanding: |
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Basic |
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| 166,902,466 |
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| 162,991,881 |
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| 166,632,637 |
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| 162,569,871 |
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Diluted |
|
| 169,969,058 |
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| 168,950,869 |
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| 169,938,476 |
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| 168,983,310 |
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EngageSmart, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands, except share and per share amounts)
|
| June 30, 2023 |
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| December 31, 2022 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
| $ | 332,831 |
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| $ | 311,780 |
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Accounts receivable, net of allowance for credit losses of $196 and $228 as of June 30, 2023 and December 31, 2022, respectively |
|
| 11,543 |
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|
| 10,971 |
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Unbilled receivables |
|
| 5,677 |
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|
| 5,413 |
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Prepaid expenses and other current assets |
|
| 13,476 |
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|
| 13,680 |
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Total current assets |
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| 363,527 |
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| 341,844 |
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Operating lease right-of-use assets |
|
| 25,188 |
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| 26,907 |
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Property and equipment, net |
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| 16,981 |
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| 14,328 |
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Goodwill |
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| 425,677 |
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| 425,677 |
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Acquired intangible assets, net |
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| 64,519 |
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| 72,319 |
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Other assets |
|
| 6,180 |
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| 5,422 |
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Total assets |
| $ | 902,072 |
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| $ | 886,497 |
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Liabilities and stockholders’ equity |
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Current liabilities: |
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Accounts payable |
| $ | 1,387 |
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| $ | 1,229 |
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Accrued expenses and other current liabilities |
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| 35,715 |
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| 38,423 |
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Deferred revenue |
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| 8,924 |
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| 8,237 |
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Operating lease liabilities |
|
| 4,876 |
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|
| 4,632 |
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Total current liabilities |
|
| 50,902 |
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| 52,521 |
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Long-term operating lease liabilities |
|
| 24,987 |
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|
| 27,161 |
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Deferred income taxes |
|
| 1,332 |
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|
| 1,322 |
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Deferred revenue, net of current portion |
|
| 324 |
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|
| 335 |
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Other long-term liabilities |
|
| 269 |
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|
| 186 |
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Total liabilities |
|
| 77,814 |
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|
| 81,525 |
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Stockholders' equity: |
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|
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Preferred stock, par value $0.001 per share, 10,000,000 shares authorized and no shares issued and outstanding as of June 30, 2023 and December 31, 2022 |
|
| — |
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| — |
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Common stock, par value $0.001 per share, 650,000,000 shares authorized and 167,216,167 and 166,081,011 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively |
|
| 167 |
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| 166 |
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Additional paid-in capital |
|
| 825,142 |
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| 814,319 |
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Accumulated stockholders' deficit |
|
| (1,051 | ) |
|
| (9,513 | ) |
Total stockholders’ equity |
|
| 824,258 |
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|
| 804,972 |
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Total liabilities and stockholders’ equity |
| $ | 902,072 |
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| $ | 886,497 |
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EngageSmart, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
|
| Six Months Ended June 30, |
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|
| 2023 |
|
| 2022 |
| ||
Cash flows from operating activities: |
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|
|
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Net income |
| $ | 8,462 |
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| $ | 8,938 |
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Adjustments to reconcile net income to net cash provided by operating activities: |
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|
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Depreciation and amortization expense |
|
| 9,823 |
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|
| 9,273 |
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Amortization of deferred costs |
|
| 424 |
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|
| 158 |
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Stock-based compensation expense |
|
| 10,002 |
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|
| 6,314 |
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Non-cash operating lease expense |
|
| 2,328 |
|
|
| 2,279 |
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Deferred income taxes |
|
| 10 |
|
|
| (1,843 | ) |
Non-cash interest expense |
|
| 116 |
|
|
| 116 |
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Changes in operating assets and liabilities: |
|
|
|
|
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Prepaid expenses and other current assets |
|
| (230 | ) |
|
| (1,750 | ) |
Accounts receivable, net |
|
| (572 | ) |
|
| (531 | ) |
Unbilled receivables |
|
| (264 | ) |
|
| (1,116 | ) |
Other assets |
|
| (873 | ) |
|
| (886 | ) |
Accounts payable |
|
| 177 |
|
|
| (989 | ) |
Accrued expenses and other current liabilities |
|
| (2,708 | ) |
|
| 589 |
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Deferred revenue |
|
| 676 |
|
|
| 732 |
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Operating lease liabilities |
|
| (2,529 | ) |
|
| (2,873 | ) |
Other long-term liabilities |
|
| 83 |
|
|
| 27 |
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Net cash provided by operating activities |
|
| 24,925 |
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|
| 18,438 |
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Cash flows from investing activities: |
|
|
|
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|
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Purchases of property and equipment, including costs capitalized for development of internal-use software |
|
| (4,696 | ) |
|
| (2,933 | ) |
Net cash used in investing activities |
|
| (4,696 | ) |
|
| (2,933 | ) |
Cash flows from financing activities: |
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|
|
|
|
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Payment of debt issuance costs |
|
| — |
|
|
| (23 | ) |
Payments of contingent consideration |
|
| — |
|
|
| (1,066 | ) |
Proceeds from exercise of stock-based options |
|
| 2,404 |
|
|
| 5,588 |
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Payments of taxes related to net share settlement of equity awards |
|
| (2,563 | ) |
|
| (266 | ) |
Proceeds from issuance of common stock under employee stock purchase plan |
|
| 981 |
|
|
| 463 |
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Payment of initial public offering costs |
|
| — |
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|
| (286 | ) |
Net cash provided by financing activities |
|
| 822 |
|
|
| 4,410 |
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Net increase in cash, cash equivalents and restricted cash |
|
| 21,051 |
|
|
| 19,915 |
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Cash, cash equivalents and restricted cash at beginning of period |
|
| 312,080 |
|
|
| 254,594 |
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Cash, cash equivalents and restricted cash at end of period |
| $ | 333,131 |
|
| $ | 274,509 |
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Reconciliation of cash, cash equivalents, and restricted cash: |
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|
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Cash and cash equivalents |
| $ | 332,831 |
|
| $ | 274,209 |
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Restricted cash within other assets |
|
| 300 |
|
|
| 300 |
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Total cash, cash equivalents, and restricted cash |
| $ | 333,131 |
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| $ | 274,509 |
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EngageSmart, Inc.
Reconciliation of GAAP to Non-GAAP Measures
(Unaudited)
Reconciliation of GAAP Net Income to Adjusted EBITDA
|
| Three Months Ended June 30, |
|
| Six Months Ended June 30, |
| ||||||||||
|
| 2023 |
|
| 2022 |
|
| 2023 |
|
| 2022 |
| ||||
|
| (in thousands, except percentages) |
| |||||||||||||
Net income |
| $ | 4,338 |
|
| $ | 6,879 |
|
| $ | 8,462 |
|
| $ | 8,938 |
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Net income margin |
|
| 4.6 | % |
|
| 9.3 | % |
|
| 4.6 | % |
|
| 6.3 | % |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
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Provision for (benefit from) income taxes |
|
| 7,703 |
|
|
| (2,663 | ) |
|
| 11,817 |
|
|
| (1,843 | ) |
Interest (income) expense, net |
|
| (3,205 | ) |
|
| (210 | ) |
|
| (5,625 | ) |
|
| (122 | ) |
Amortization of intangible assets |
|
| 3,900 |
|
|
| 3,899 |
|
|
| 7,800 |
|
|
| 7,800 |
|
Depreciation |
|
| 1,031 |
|
|
| 733 |
|
|
| 2,023 |
|
|
| 1,473 |
|
Stock-based compensation |
|
| 5,102 |
|
|
| 3,327 |
|
|
| 10,002 |
|
|
| 6,314 |
|
Transaction-related expense |
|
| 510 |
|
|
| — |
|
|
| 2,222 |
|
|
| (38 | ) |
Adjusted EBITDA |
| $ | 19,379 |
|
| $ | 11,965 |
|
| $ | 36,701 |
|
| $ | 22,522 |
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Adjusted EBITDA Margin |
|
| 20.5 | % |
|
| 16.2 | % |
|
| 20.1 | % |
|
| 15.9 | % |
Reconciliation of GAAP Gross Profit to Adjusted Gross Profit
|
| Three Months Ended June 30, |
|
| Six Months Ended June 30, |
| ||||||||||
|
| 2023 |
|
| 2022 |
|
| 2023 |
|
| 2022 |
| ||||
|
| (in thousands, except percentages) |
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Gross profit |
| $ | 72,772 |
|
| $ | 56,059 |
|
| $ | 140,305 |
|
| $ | 107,382 |
|
Gross margin |
|
| 77.1 | % |
|
| 75.9 | % |
|
| 76.7 | % |
|
| 76.0 | % |
Adjustments: |
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|
|
|
|
|
|
|
|
|
| ||||
Amortization of intangible assets |
|
| 1,538 |
|
|
| 1,537 |
|
|
| 3,076 |
|
|
| 3,076 |
|
Stock-based compensation |
|
| 489 |
|
|
| 155 |
|
|
| 1,040 |
|
|
| 263 |
|
Adjusted Gross Profit |
| $ | 74,799 |
|
| $ | 57,751 |
|
| $ | 144,421 |
|
| $ | 110,721 |
|
Adjusted Gross Margin |
|
| 79.2 | % |
|
| 78.2 | % |
|
| 79.0 | % |
|
| 78.4 | % |
|
|
|
|
|
|
Free Cash Flow
|
| Three Months Ended June 30, |
|
| Six Months Ended June 30, |
| ||||||||||
|
| 2023 |
|
| 2022 |
|
| 2023 |
|
| 2022 |
| ||||
|
| (in thousands) |
|
| (in thousands) |
| ||||||||||
Net cash provided by operating activities |
| $ | 16,091 |
|
| $ | 15,697 |
|
| $ | 24,925 |
|
| $ | 18,438 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Purchases of property and equipment, including costs capitalized for development of internal-use software |
|
| (2,244 | ) |
|
| (1,424 | ) |
|
| (4,696 | ) |
|
| (2,933 | ) |
Free cash flow |
| $ | 13,847 |
|
| $ | 14,273 |
|
| $ | 20,229 |
|
| $ | 15,505 |
|
Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses
|
| Three Months Ended June 30, |
|
| Six Months Ended June 30, |
| ||||||||||
|
| 2023 |
|
| 2022 |
|
| 2023 |
|
| 2022 |
| ||||
|
| (in thousands, except percentages) |
| |||||||||||||
General and administrative expenses |
| $ | 14,456 |
|
| $ | 14,997 |
|
| $ | 29,863 |
|
| $ | 28,284 |
|
General and administrative as a percentage of revenue |
|
| 15.3 | % |
|
| 20.3 | % |
|
| 16.3 | % |
|
| 20.0 | % |
Less: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Stock-based compensation |
|
| (2,609 | ) |
|
| (2,377 | ) |
|
| (5,051 | ) |
|
| (4,696 | ) |
Transaction-related expense |
|
| (478 | ) |
|
| — |
|
|
| (2,190 | ) |
|
| 38 |
|
Non-GAAP general and administrative expenses |
| $ | 11,369 |
|
| $ | 12,620 |
|
| $ | 22,622 |
|
| $ | 23,626 |
|
Non-GAAP general and administrative as a percentage of revenue |
|
| 12.0 | % |
|
| 17.1 | % |
|
| 12.4 | % |
|
| 16.7 | % |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Selling and marketing expenses |
| $ | 30,421 |
|
| $ | 23,692 |
|
| $ | 59,547 |
|
| $ | 46,356 |
|
Selling and marketing as a percentage of revenue |
|
| 32.2 | % |
|
| 32.1 | % |
|
| 32.6 | % |
|
| 32.8 | % |
Less: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Stock-based compensation |
|
| (976 | ) |
|
| (557 | ) |
|
| (1,927 | ) |
|
| (960 | ) |
Transaction-related expense |
|
| (5 | ) |
|
| — |
|
|
| (5 | ) |
|
| — |
|
Non-GAAP selling and marketing expenses |
| $ | 29,440 |
|
| $ | 23,135 |
|
| $ | 57,615 |
|
| $ | 45,396 |
|
Non-GAAP selling and marketing as a percentage of revenue |
|
| 31.2 | % |
|
| 31.3 | % |
|
| 31.5 | % |
|
| 32.1 | % |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Research and development expenses |
| $ | 16,693 |
|
| $ | 10,993 |
|
| $ | 31,513 |
|
| $ | 21,033 |
|
Research and development as a percentage of revenue |
|
| 17.7 | % |
|
| 14.9 | % |
|
| 17.2 | % |
|
| 14.9 | % |
Less: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Stock-based compensation |
|
| (1,028 | ) |
|
| (238 | ) |
|
| (1,984 | ) |
|
| (395 | ) |
Transaction-related expense |
|
| (27 | ) |
|
| — |
|
|
| (27 | ) |
|
| — |
|
Non-GAAP research and development expenses |
| $ | 15,638 |
|
| $ | 10,755 |
|
| $ | 29,502 |
|
| $ | 20,638 |
|
Non-GAAP research and development as a percentage of revenue |
|
| 16.6 | % |
|
| 14.6 | % |
|
| 16.1 | % |
|
| 14.6 | % |
|
|
|
|
|
|
Disaggregated Revenue
|
| Three Months Ended June 30, |
|
| Six Months Ended June 30, |
| ||||||||||
|
| 2023 |
|
| 2022 |
|
| 2023 |
|
| 2022 |
| ||||
|
| (in thousands) |
| |||||||||||||
Enterprise Solutions |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Transaction and usage-based |
| $ | 38,148 |
|
| $ | 29,989 |
|
| $ | 73,554 |
|
| $ | 58,308 |
|
Subscription |
|
| 2,676 |
|
|
| 2,156 |
|
|
| 5,231 |
|
|
| 4,237 |
|
Other |
|
| 484 |
|
|
| 872 |
|
|
| 1,168 |
|
|
| 1,332 |
|
Total Enterprise Solutions revenue |
|
| 41,308 |
|
|
| 33,017 |
|
|
| 79,953 |
|
|
| 63,877 |
|
SMB Solutions |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Transaction and usage-based |
|
| 16,158 |
|
|
| 11,237 |
|
|
| 30,730 |
|
|
| 22,264 |
|
Subscription |
|
| 36,629 |
|
|
| 29,225 |
|
|
| 71,532 |
|
|
| 54,277 |
|
Other |
|
| 314 |
|
|
| 383 |
|
|
| 626 |
|
|
| 806 |
|
Total SMB Solutions revenue |
|
| 53,101 |
|
|
| 40,845 |
|
|
| 102,888 |
|
|
| 77,347 |
|
Total revenue |
| $ | 94,409 |
|
| $ | 73,862 |
|
| $ | 182,841 |
|
| $ | 141,224 |
|
|
|
|