Delaware |
0-25965 |
47-1053457 |
|||||||||||||||
(State or other jurisdiction of incorporation or organization) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, $0.01 par value | ZD | Nasdaq Stock Market LLC |
Exhibit Number | Description | |||||||
99.1 | ||||||||
99.2 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
Ziff Davis, Inc.
(Registrant)
|
|||||||||||
Date: | August 3, 2023 | By: | /s/ Jeremy Rossen | ||||||||
Jeremy Rossen Executive Vice President, General Counsel and Secretary |
Three months ended June 30, | % Change | Six months ended June 30, |
% Change | |||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||
Revenues | ||||||||||||||||||||
Digital Media | $252.8 | $258.4 | (2.2)% | $487.0 | $493.0 | (1.2)% | ||||||||||||||
Cybersecurity and Martech | $73.2 | $79.0 | (7.3)% | $146.2 | $159.4 | (8.3)% | ||||||||||||||
Total revenue(3) |
$326.0 | $337.4 | (3.4)% | $633.2 | $652.4 | (3.0)% | ||||||||||||||
Income from operations | $38.9 | $45.9 | (15.2)% | $65.2 | $76.4 | (14.7)% | ||||||||||||||
Operating income margin | 11.9% | 13.6% | (1.7)% | 10.3% | 11.7% | (1.4)% | ||||||||||||||
Net income (loss) | $16.7 | $(46.4) | 135.9% | $9.1 | $(21.9) | 141.6% | ||||||||||||||
Net income (loss) per diluted share(2) |
$0.36 | $(0.99) | 136.4% | $0.19 | $(0.47) | 140.4% | ||||||||||||||
Adjusted EBITDA(1) |
$106.7 | $118.0 | (9.6)% | $201.0 | $218.8 | (8.1)% | ||||||||||||||
Adjusted EBITDA margin(1) |
32.7% | 35.0% | (2.3)% | 31.7% | 33.5% | (1.8)% | ||||||||||||||
Adjusted net income(1) |
$59.6 | $74.4 | (19.9)% | $111.3 | $132.4 | (15.9)% | ||||||||||||||
Adjusted diluted EPS(1)(2) |
$1.27 | $1.58 | (19.6)% | $2.37 | $2.81 | (15.7)% | ||||||||||||||
Net cash provided by operating activities | $39.7 | $76.0 | (47.8)% | $155.0 | $192.5 | (19.5)% | ||||||||||||||
Free cash flow(1) |
$14.5 | $52.6 | (72.4)% | $99.8 | $138.6 | (28.0)% |
(1) | For definitions of non-GAAP financial measures and reconciliations of GAAP to non-GAAP financial measures refer to section “Non-GAAP Financial Measures,” further in this report. | |||||||
(2) | The estimated GAAP effective tax rates were approximately 27.2% and (33.2)% for the three months ended June 30, 2023 and 2022, respectively, and 23.7% and 12,760.8% for the six months ended June 30, 2023 and 2022, respectively. The estimated Adjusted effective tax rates were approximately 24.8% and 22.7% for the three months ended June 30, 2023 and 2022, respectively, and 24.3% and 22.9% for the six months ended June 30, 2023 and 2022, respectively. |
|||||||
(3) | The revenues associated with each of the businesses may not foot precisely since each is presented independently. |
2023 Range of Estimates | |||||||||||
Low | High | ||||||||||
Revenue | $ | 1,350.0 | $ | 1,408.0 | |||||||
Adjusted EBITDA | $ | 479.0 | $ | 514.0 | |||||||
Adjusted diluted EPS* | $ | 6.02 | $ | 6.54 |
June 30, 2023 | December 31, 2022 | ||||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | 679,090 | $ | 652,793 | |||||||
Short-term investments | 35,816 | 58,421 | |||||||||
Accounts receivable, net of allowances of $7,511 and $6,868, respectively |
285,909 | 304,739 | |||||||||
Prepaid expenses and other current assets | 74,044 | 68,319 | |||||||||
Total current assets | 1,074,859 | 1,084,272 | |||||||||
Long-term investments | 114,356 | 127,871 | |||||||||
Property and equipment, net of accumulated amortization of $296,223 and $255,586, respectively |
192,380 | 178,184 | |||||||||
Intangible assets, net | 401,639 | 462,815 | |||||||||
Goodwill | 1,599,896 | 1,591,474 | |||||||||
Deferred income taxes | 8,561 | 8,523 | |||||||||
Other assets | 77,598 | 80,131 | |||||||||
TOTAL ASSETS | $ | 3,469,289 | $ | 3,533,270 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Accounts payable | $ | 127,145 | $ | 120,829 | |||||||
Accrued employee related costs | 33,659 | 42,178 | |||||||||
Other accrued liabilities | 52,702 | 39,539 | |||||||||
Income taxes payable, current | 11,052 | 19,712 | |||||||||
Deferred revenue, current | 188,725 | 187,904 | |||||||||
Accrued liabilities and other current liabilities | 22,760 | 22,286 | |||||||||
Total current liabilities | 436,043 | 432,448 | |||||||||
Long-term debt | 1,000,178 | 999,053 | |||||||||
Deferred revenue, noncurrent | 8,303 | 9,103 | |||||||||
Deferred income taxes | 58,198 | 79,007 | |||||||||
Income taxes payable, noncurrent | 8,486 | 11,675 | |||||||||
Other long-term liabilities | 95,399 | 109,373 | |||||||||
TOTAL LIABILITIES | 1,606,607 | 1,640,659 | |||||||||
Common stock | 464 | 473 | |||||||||
Additional paid-in capital | 448,920 | 439,681 | |||||||||
Retained earnings | 1,492,879 | 1,537,830 | |||||||||
Accumulated other comprehensive loss | (79,581) | (85,373) | |||||||||
TOTAL STOCKHOLDERS’ EQUITY | 1,862,682 | 1,892,611 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 3,469,289 | $ | 3,533,270 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Total revenues | $ | 326,016 | $ | 337,356 | $ | 633,158 | $ | 652,424 | |||||||||||||||
Operating costs and expenses: | |||||||||||||||||||||||
Cost of revenues | 47,421 | 46,004 | 93,151 | 92,104 | |||||||||||||||||||
Sales and marketing | 119,934 | 123,777 | 235,854 | 241,539 | |||||||||||||||||||
Research, development, and engineering | 17,817 | 19,721 | 35,731 | 38,148 | |||||||||||||||||||
General and administrative | 101,949 | 101,967 | 203,212 | 204,184 | |||||||||||||||||||
Total operating costs and expenses | 287,121 | 291,469 | 567,948 | 575,975 | |||||||||||||||||||
Income from operations | 38,895 | 45,887 | 65,210 | 76,449 | |||||||||||||||||||
Interest expense, net | (10,483) | (9,569) | (14,963) | (19,859) | |||||||||||||||||||
Gain on debt extinguishment, net | — | 2,613 | — | 1,393 | |||||||||||||||||||
(Loss) gain on investments, net | — | (48,243) | 357 | (48,243) | |||||||||||||||||||
Unrealized loss on short-term investments held at the reporting date, net | (3,196) | (27,317) | (23,541) | (18,366) | |||||||||||||||||||
Other (loss) income, net | (1,503) | 6,345 | (2,411) | 8,744 | |||||||||||||||||||
Income (loss) before income taxes and loss from equity method investment, net | 23,713 | (30,284) | 24,652 | 118 | |||||||||||||||||||
Income tax expense | (6,461) | (10,051) | (5,845) | (15,131) | |||||||||||||||||||
Loss from equity method investment, net | (573) | (6,101) | (9,755) | (6,886) | |||||||||||||||||||
Net income (loss) | $ | 16,679 | $ | (46,436) | $ | 9,052 | $ | (21,899) | |||||||||||||||
Basic | $ | 0.36 | $ | (0.99) | $ | 0.19 | $ | (0.47) | |||||||||||||||
Diluted | $ | 0.36 | $ | (0.99) | $ | 0.19 | $ | (0.47) | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | 46,798,800 | 46,978,709 | 46,892,504 | 47,016,351 | |||||||||||||||||||
Diluted | 46,798,800 | 46,978,709 | 46,892,504 | 47,016,351 |
Six months ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | 9,052 | $ | (21,899) | |||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 111,479 | 118,943 | |||||||||
Non-cash operating lease costs | 5,924 | 5,913 | |||||||||
Share-based compensation | 17,619 | 14,420 | |||||||||
Provision for credit losses (benefit) on accounts receivable | 1,819 | (1,376) | |||||||||
Deferred income taxes, net | (18,330) | (10,266) | |||||||||
Gain on extinguishment of debt, net | — | (1,393) | |||||||||
Loss from equity method investments | 9,755 | 6,886 | |||||||||
Unrealized loss on short-term investments held at the reporting date | 23,541 | 18,366 | |||||||||
(Gain) loss on investment, net | (357) | 48,243 | |||||||||
Other | 3,834 | 2,106 | |||||||||
Decrease (increase) in: | |||||||||||
Accounts receivable | 20,470 | 77,168 | |||||||||
Prepaid expenses and other current assets | (13,038) | 5,804 | |||||||||
Other assets | (4,030) | (4,990) | |||||||||
Increase (decrease) in: | |||||||||||
Accounts payable | (1,332) | (36,504) | |||||||||
Deferred revenue | (1,777) | (11,882) | |||||||||
Accrued liabilities and other current liabilities | (9,594) | (17,055) | |||||||||
Total operating cash provided by continuing operations | 155,035 | 192,484 | |||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment | (55,250) | (53,876) | |||||||||
Acquisition of businesses, net of cash received | (9,492) | (92,425) | |||||||||
Investment in available-for-sale securities | — | (15,000) | |||||||||
Proceeds from sale of equity investments | 3,174 | — | |||||||||
Other | (3,753) | — | |||||||||
Net cash used in investing activities | (65,321) | (161,301) | |||||||||
Cash flows from financing activities: | |||||||||||
Payment of debt | — | (72,853) | |||||||||
Proceeds from term loan | — | 89,991 | |||||||||
Debt extinguishment costs | — | (756) | |||||||||
Repurchase of common stock | (62,678) | (76,345) | |||||||||
Issuance of common stock under employee stock purchase plan | 4,724 | 5,235 | |||||||||
Proceeds from exercise of stock options | — | 148 | |||||||||
Deferred payments for acquisitions | (6,679) | (7,094) | |||||||||
Other | 21 | (5) | |||||||||
Net cash (used in) provided by financing activities | (64,612) | (61,679) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | 1,195 | (16,056) | |||||||||
Net change in cash and cash equivalents | 26,297 | (46,552) | |||||||||
Cash and cash equivalents at beginning of year | 652,793 | 694,842 | |||||||||
Cash and cash equivalents at end of year | $ | 679,090 | $ | 648,290 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income (loss) | $ | 16,679 | $ | (46,436) | $ | 9,052 | $ | (21,899) | |||||||||||||||
Interest expense, net | 10,483 | 9,569 | 14,963 | 19,859 | |||||||||||||||||||
Gain on debt extinguishment, net | — | (2,613) | — | (1,393) | |||||||||||||||||||
Unrealized loss on short-term investments held at the reporting date | 3,196 | 27,317 | 23,541 | 18,366 | |||||||||||||||||||
Loss (gain) on investments, net | — | 48,243 | (357) | 48,243 | |||||||||||||||||||
Other loss (income), net | 1,503 | (6,345) | 2,411 | (8,744) | |||||||||||||||||||
Income tax expense | 6,461 | 10,051 | 5,845 | 15,131 | |||||||||||||||||||
(Gain) loss from equity method investment, net | (927) | 6,101 | 8,255 | 6,886 | |||||||||||||||||||
Depreciation and amortization | 56,856 | 59,872 | 111,479 | 118,943 | |||||||||||||||||||
Share-based compensation | 9,217 | 7,703 | 17,619 | 14,420 | |||||||||||||||||||
Acquisition, integration, and other costs | 3,369 | 3,431 | 6,894 | 4,965 | |||||||||||||||||||
Disposal related costs | 60 | 65 | 209 | 1,304 | |||||||||||||||||||
Lease asset impairments and other charges | (221) | 1,079 | 1,098 | 2,744 | |||||||||||||||||||
Adjusted EBITDA | $ | 106,676 | $ | 118,037 | $ | 201,009 | $ | 218,825 |
Three months ended June 30, 2023 | |||||||||||||||||||||||
Digital Media |
Cybersecurity and Martech |
Corporate | Total | ||||||||||||||||||||
Revenues | $ | 252,820 | $ | 73,196 | $ | — | $ | 326,016 | |||||||||||||||
Income (loss) from operations | $ | 36,668 | $ | 13,565 | $ | (11,338) | $ | 38,895 | |||||||||||||||
Income from equity method investment, net | — | — | (1,500) | (1,500) | |||||||||||||||||||
Depreciation and amortization | 45,259 | 11,590 | 7 | 56,856 | |||||||||||||||||||
Share-based compensation | 4,070 | 1,283 | 3,864 | 9,217 | |||||||||||||||||||
Acquisition, integration, and other costs | 3,256 | 113 | — | 3,369 | |||||||||||||||||||
Disposal related costs | — | — | 60 | 60 | |||||||||||||||||||
Lease asset impairments and other charges | (275) | 54 | — | (221) | |||||||||||||||||||
Adjusted EBITDA | $ | 88,978 | $ | 26,605 | $ | (8,907) | $ | 106,676 |
Three months ended June 30, 2022 | |||||||||||||||||||||||
Digital Media |
Cybersecurity and Martech | Corporate | Total | ||||||||||||||||||||
Revenues | $ | 258,343 | $ | 79,013 | $ | — | $ | 337,356 | |||||||||||||||
Income (loss) from operations | $ | 44,162 | $ | 13,023 | $ | (11,298) | $ | 45,887 | |||||||||||||||
Depreciation and amortization | 47,545 | 12,263 | 64 | 59,872 | |||||||||||||||||||
Share-based compensation | 3,306 | 1,389 | 3,008 | 7,703 | |||||||||||||||||||
Acquisition, integration, and other costs | 3,183 | 239 | 9 | 3,431 | |||||||||||||||||||
Disposal related costs | — | — | 65 | 65 | |||||||||||||||||||
Lease asset impairments and other charges | 637 | 442 | — | 1,079 | |||||||||||||||||||
Adjusted EBITDA | $ | 98,833 | $ | 27,356 | $ | (8,152) | $ | 118,037 |
Three months ended June 30, | |||||||||||||||||||||||
2023 | Per diluted share* | 2022 | Per diluted share* | ||||||||||||||||||||
Net income (loss) | $ | 16,679 | $ | 0.36 | $ | (46,436) | $ | (0.99) | |||||||||||||||
Interest costs | 5,509 | 0.12 | 83 | — | |||||||||||||||||||
Gain on debt extinguishment, net | — | — | (2,309) | (0.05) | |||||||||||||||||||
(Gain) loss on sale of business | 88 | — | — | — | |||||||||||||||||||
Unrealized (gain) loss on short-term investments held at the reporting date | 2,416 | 0.05 | 26,273 | 0.56 | |||||||||||||||||||
(Gain) loss on investments, net | — | — | 48,111 | 1.02 | |||||||||||||||||||
Loss (income) from equity method investment, net | (552) | (0.01) | 6,101 | 0.13 | |||||||||||||||||||
Amortization | 25,796 | 0.55 | 32,064 | 0.68 | |||||||||||||||||||
Share-based compensation | 7,181 | 0.15 | 6,798 | 0.14 | |||||||||||||||||||
Acquisition, integration, and other costs | 2,576 | 0.05 | 2,626 | 0.06 | |||||||||||||||||||
Disposal related costs | 44 | — | 305 | 0.01 | |||||||||||||||||||
Lease asset impairments and other charges | (160) | — | 808 | 0.02 | |||||||||||||||||||
Adjusted net income | $ | 59,577 | $ | 1.27 | $ | 74,424 | $ | 1.58 |
Six months ended June 30, | |||||||||||||||||||||||
2023 | Per diluted share* | 2022 | Per diluted share* | ||||||||||||||||||||
Net income (loss) | $ | 9,052 | $ | 0.19 | $ | (21,899) | $ | (0.47) | |||||||||||||||
Interest costs | 5,565 | 0.12 | 173 | — | |||||||||||||||||||
Gain on debt extinguishment, net | — | — | (1,393) | (0.03) | |||||||||||||||||||
(Gain) loss on sale of business | 88 | — | — | — | |||||||||||||||||||
Unrealized (gain) loss on short-term investments held at the reporting date | 17,681 | 0.38 | 17,322 | 0.37 | |||||||||||||||||||
(Gain) loss on investments, net | (268) | (0.01) | 48,111 | 1.01 | |||||||||||||||||||
Loss (income) from equity method investment, net | 8,630 | 0.18 | 6,886 | 0.15 | |||||||||||||||||||
Amortization | 50,418 | 1.08 | 64,462 | 1.37 | |||||||||||||||||||
Share-based compensation | 13,998 | 0.30 | 11,676 | 0.25 | |||||||||||||||||||
Acquisition, integration, and other costs | 5,153 | 0.11 | 3,826 | 0.08 | |||||||||||||||||||
Disposal related costs | 156 | — | 1,123 | 0.03 | |||||||||||||||||||
Lease asset impairment and other charges | 830 | 0.02 | 2,066 | 0.05 | |||||||||||||||||||
Adjusted net income | $ | 111,303 | $ | 2.37 | $ | 132,353 | $ | 2.81 |
Three months ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||||
GAAP amount | Adjustments | Adjusted non-GAAP amount | ||||||||||||||||||||||||||||||||||||
Interest costs, net | (Gain) loss on sale of business | Unrealized (gain) loss on short-term investments held at the reporting date | (Gain) loss on investments, net | (Income) loss from equity method investments, net | Amortization | Share-based compensation | Acquisition, integration, and other costs | Disposal related costs | Lease asset impairments and other charges | |||||||||||||||||||||||||||||
Cost of revenues | $ | 47,421 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (189) | $ | (94) | $ | (101) | $ | — | $ | — | $ | 47,037 | ||||||||||||||
Sales and marketing | $ | 119,934 | — | — | — | — | — | — | (1,038) | (653) | — | — | $ | 118,243 | ||||||||||||||||||||||||
Research, development, and engineering | $ | 17,817 | — | — | — | — | — | — | (958) | (133) | — | — | $ | 16,726 | ||||||||||||||||||||||||
General and administrative | $ | 101,949 | — | — | — | — | 1,500 | (33,732) | (7,127) | (2,482) | (60) | 221 | $ | 60,269 | ||||||||||||||||||||||||
Interest expense, net | $ | (10,483) | 7,346 | — | — | — | — | — | — | — | — | — | $ | (3,137) | ||||||||||||||||||||||||
Unrealized loss on short-term investments held at period end | $ | (3,196) | — | — | 3,196 | — | — | — | — | — | — | — | $ | — | ||||||||||||||||||||||||
Other loss, net | $ | (1,503) | — | 118 | — | — | — | — | — | — | — | — | $ | (1,385) | ||||||||||||||||||||||||
Income tax expense | $ | (6,461) | (1,837) | (30) | (780) | — | 375 | (8,125) | (2,036) | (793) | (16) | 61 | $ | (19,642) | ||||||||||||||||||||||||
Loss from equity method investment, net | $ | (573) | — | — | — | — | 573 | — | — | — | — | — | $ | — | ||||||||||||||||||||||||
Total non-GAAP adjustments | $ | 5,509 | $ | 88 | $ | 2,416 | $ | — | $ | (552) | $ | 25,796 | $ | 7,181 | $ | 2,576 | $ | 44 | $ | (160) |
Three months ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||
GAAP amount | Adjustments | Adjusted non-GAAP amount | ||||||||||||||||||||||||||||||||||||
Interest costs, net | (Gain) loss on debt extinguishment | Unrealized (gain) loss on short-term investments held at the reporting date | (Gain) loss on investments, net | (Income) loss from equity method investments, net | Amortization | Share-based compensation | Acquisition, integration, and other costs | Disposal related costs | Lease asset impairments and other charges | |||||||||||||||||||||||||||||
Cost of revenues | $ | 46,004 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (259) | $ | (142) | $ | (2) | $ | — | $ | — | $ | 45,601 | ||||||||||||||
Sales and marketing | $ | 123,777 | — | — | — | — | — | — | (1,106) | (1,219) | — | (438) | $ | 121,014 | ||||||||||||||||||||||||
Research, development, and engineering | $ | 19,721 | — | — | — | — | — | — | (851) | (195) | — | — | $ | 18,675 | ||||||||||||||||||||||||
General and administrative | $ | 101,967 | — | — | — | — | — | (41,642) | (5,604) | (2,015) | (64) | (641) | $ | 52,001 | ||||||||||||||||||||||||
Interest expense, net | $ | (9,569) | 110 | — | — | — | — | — | — | — | — | — | $ | (9,459) | ||||||||||||||||||||||||
Gain on debt extinguishment, net | $ | 2,613 | — | (3,069) | — | — | — | — | — | — | — | — | $ | (456) | ||||||||||||||||||||||||
Loss on investment, net | $ | (48,243) | — | — | — | 48,243 | — | — | — | — | — | — | $ | — | ||||||||||||||||||||||||
Unrealized loss on short-term investments held at period end | $ | (27,317) | — | — | 27,317 | — | — | — | — | — | — | — | $ | — | ||||||||||||||||||||||||
Other income, net | $ | 6,345 | — | — | — | (174) | — | — | — | — | — | — | $ | 6,171 | ||||||||||||||||||||||||
Income tax expense | $ | (10,051) | (27) | 760 | (1,044) | 42 | — | (9,837) | (905) | (805) | 241 | (271) | $ | (21,897) | ||||||||||||||||||||||||
Loss from equity method investment, net | $ | (6,101) | — | — | — | — | 6,101 | — | — | — | — | — | $ | — | ||||||||||||||||||||||||
Total non-GAAP adjustments | $ | 83 | $ | (2,309) | $ | 26,273 | $ | 48,111 | $ | 6,101 | $ | 32,064 | $ | 6,798 | $ | 2,626 | $ | 305 | $ | 808 |
Six months ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||||
GAAP amount | Adjustments | Adjusted non-GAAP amount | ||||||||||||||||||||||||||||||||||||
Interest costs, net | (Gain) loss on sale of business | Unrealized (gain) loss on short-term investments held at the reporting date | (Gain) loss on investments, net | (Income) loss from equity method investments, net | Amortization | Share-based compensation | Acquisition, integration, and other costs | Disposal related costs | Lease asset impairments and other charges | |||||||||||||||||||||||||||||
Cost of revenues | $ | 93,151 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (385) | $ | (170) | $ | (186) | $ | — | $ | — | $ | 92,410 | ||||||||||||||
Sales and marketing | $ | 235,854 | — | — | — | — | — | — | (1,962) | (2,072) | — | — | $ | 231,820 | ||||||||||||||||||||||||
Research, development, and engineering | $ | 35,731 | — | — | — | — | — | — | (1,741) | (308) | — | — | $ | 33,682 | ||||||||||||||||||||||||
General and administrative | $ | 203,212 | — | — | — | — | 1,500 | (67,051) | (13,746) | (4,328) | (209) | (1,098) | $ | 118,280 | ||||||||||||||||||||||||
Interest expense, net | $ | (14,963) | 7,420 | — | — | — | — | — | — | — | — | — | $ | (7,543) | ||||||||||||||||||||||||
Gain (loss) on debt extinguishment, net | $ | — | — | — | — | — | — | — | — | — | — | — | $ | — | ||||||||||||||||||||||||
Gain on sale of business | $ | — | — | — | — | — | — | — | — | — | — | — | $ | — | ||||||||||||||||||||||||
Gain on investment, net | $ | 357 | — | — | — | (357) | — | — | — | — | — | — | $ | — | ||||||||||||||||||||||||
Unrealized loss on short-term investments held at period end | $ | (23,541) | — | — | 23,541 | — | — | — | — | — | — | — | $ | — | ||||||||||||||||||||||||
Other loss, net | $ | (2,411) | — | 118 | — | — | — | — | — | — | — | — | $ | (2,293) | ||||||||||||||||||||||||
Income tax expense | $ | (5,845) | (1,855) | (30) | (5,860) | 89 | 375 | (17,018) | (3,621) | (1,741) | (53) | (268) | $ | (35,827) | ||||||||||||||||||||||||
Loss from equity method investment, net | $ | (9,755) | — | — | — | — | 9,755 | — | — | — | — | — | $ | — | ||||||||||||||||||||||||
Total non-GAAP adjustments | $ | 5,565 | $ | 88 | $ | 17,681 | $ | (268) | $ | 8,630 | $ | 50,418 | $ | 13,998 | $ | 5,153 | $ | 156 | $ | 830 |
Six months ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||
GAAP amount | Adjustments | Adjusted amount | ||||||||||||||||||||||||||||||||||||
Interest costs | (Gain) loss on debt extinguishment | Unrealized (gain) loss on short-term investments held at the reporting date | (Gain) loss on investments, net | (Income) loss from equity method investments, net | Amortization | Share-based compensation | Acquisition, integration, and other costs | Disposal related costs | Lease asset impairments and other charges | |||||||||||||||||||||||||||||
Cost of revenues | $ | 92,104 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (538) | $ | (226) | $ | (54) | $ | — | $ | — | $ | 91,286 | ||||||||||||||
Sales and marketing | $ | 241,539 | — | — | — | — | — | — | (1,675) | (1,385) | — | (961) | $ | 237,518 | ||||||||||||||||||||||||
Research, development, and engineering | $ | 38,148 | — | — | — | — | — | — | (1,480) | (413) | — | — | $ | 36,255 | ||||||||||||||||||||||||
General and administrative | $ | 204,184 | — | — | — | — | — | (82,865) | (11,039) | (3,113) | (1,304) | (1,783) | $ | 104,080 | ||||||||||||||||||||||||
Interest expense, net | $ | (19,859) | 231 | — | — | — | — | — | — | — | — | — | $ | (19,628) | ||||||||||||||||||||||||
Gain on debt extinguishment, net | $ | 1,393 | — | (1,849) | — | — | — | — | — | — | — | — | $ | (456) | ||||||||||||||||||||||||
Loss on investment, net | $ | (48,243) | — | — | — | 48,243 | — | — | — | — | — | — | $ | — | ||||||||||||||||||||||||
Unrealized loss on short-term investments held at period end | $ | (18,366) | — | — | 18,366 | — | — | — | — | — | — | — | $ | — | ||||||||||||||||||||||||
Other income, net | $ | 8,744 | — | — | — | (174) | — | — | — | — | — | — | $ | 8,570 | ||||||||||||||||||||||||
Income tax expense | $ | (15,131) | (58) | 456 | (1,044) | 42 | — | (18,941) | (2,744) | (1,139) | (181) | (678) | $ | (39,418) | ||||||||||||||||||||||||
Loss from equity method investment, net | $ | (6,886) | — | — | — | — | 6,886 | — | — | — | — | — | $ | — | ||||||||||||||||||||||||
Total non-GAAP adjustments | $ | 173 | $ | (1,393) | $ | 17,322 | $ | 48,111 | $ | 6,886 | $ | 64,462 | $ | 11,676 | $ | 3,826 | $ | 1,123 | $ | 2,066 |
2023 | Q1 | Q2 | Q3 | Q4 | YTD | ||||||||||||||||||||||||
Net cash provided by operating activities | $ | 115,307 | $ | 39,728 | $ | — | $ | — | $ | 155,035 | |||||||||||||||||||
Less: Purchases of property and equipment | (30,017) | (25,233) | — | — | (55,250) | ||||||||||||||||||||||||
Free cash flow | $ | 85,290 | $ | 14,495 | $ | — | $ | — | $ | 99,785 |
2022 | Q1 | Q2 | Q3 | Q4 | YTD | ||||||||||||||||||||||||
Net cash provided by operating activities | $ | 116,511 | $ | 75,973 | $ | 100,735 | $ | 43,225 | $ | 336,444 | |||||||||||||||||||
Less: Purchases of property and equipment | (30,502) | (23,374) | (26,891) | (25,387) | (106,154) | ||||||||||||||||||||||||
Free cash flow | $ | 86,009 | $ | 52,599 | $ | 73,844 | $ | 17,838 | $ | 230,290 |