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: | February 21, 2024 | By: | /s/ Jeremy Rossen | ||||||||
Jeremy Rossen Executive Vice President, General Counsel and Secretary |
(Unaudited) |
Three months ended December 31, | % Change |
Year ended
December 31,
|
% Change | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||
Revenues | ||||||||||||||||||||
Digital Media | $317.9 | $321.7 | (1.2)% | $1,072.8 | $1,078.4 | (0.5)% | ||||||||||||||
Cybersecurity and Martech | $72.0 | $75.0 | (4.0)% | $291.2 | $312.6 | (6.8)% | ||||||||||||||
Total revenues(3) |
$389.9 | $396.7 | (1.7)% | $1,364.0 | $1,391.0 | (1.9)% | ||||||||||||||
Income from operations |
$80.7 | $93.5 | (13.6)% | $132.6 | $198.9 | (33.3)% | ||||||||||||||
Operating income margin |
20.7% | 23.6% | (2.9)% | 9.7% | 14.3% | (4.6)% | ||||||||||||||
Net income from continuing operations |
$63.4 | $69.2 | (8.3)% | $41.5 | $65.5 | (36.6)% | ||||||||||||||
Net income |
$63.4 | $67.5 | (6.1)% | $41.5 | $63.8 | (35.0)% | ||||||||||||||
Net income per diluted share from continuing operations(1) |
$1.29 | $1.37 | (5.8)% | $0.89 | $1.39 | (36.0)% | ||||||||||||||
Adjusted EBITDA(2) |
$167.6 | $168.3 | (0.4)% | $482.3 | $507.2 | (4.9)% | ||||||||||||||
Adjusted EBITDA margin(2) |
43.0% | 42.4% | 0.6% | 35.4% | 36.5% | (1.1)% | ||||||||||||||
Adjusted net income from continuing operations(2) |
$107.0 | $106.0 | 1.0% | $287.4 | $312.6 | (8.1)% | ||||||||||||||
Adjusted diluted EPS from continuing operations(1)(2) |
$2.33 | $2.26 | 3.1% | $6.19 | $6.65 | (6.9)% | ||||||||||||||
Net cash provided by operating activities from continuing and discontinued operations |
$92.1 | $43.2 | n/m | $320.0 | $336.4 | (4.9)% | ||||||||||||||
Free cash flow from continuing and discontinued operations(2) |
$65.9 | $17.8 | n/m | $211.2 | $230.3 | (8.3)% |
(1) | GAAP effective tax rates were approximately 17.0% and 27.0% for the three months ended December 31, 2023 and 2022, respectively, and 32.2% and 44.2% for the year ended December 31, 2023 and 2022, respectively. Adjusted effective tax rates were approximately 22.5% and 23.2% for the three months ended December 31, 2023 and 2022, respectively, and 23.3% and 22.9% for the year ended December 31, 2023 and 2022, respectively. |
|||||||
(2) | 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. |
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(3) | The revenues associated with each of the businesses may not foot precisely since each is presented independently. |
2023 Actual |
2024 Range of Estimates |
Growth |
|||||||||||||||||||||||||||
(unaudited) | Low | High | Low | High | |||||||||||||||||||||||||
Revenue | $ | 1,364.0 | $ | 1,411.0 | $ | 1,471.0 | 3.4 | % | 7.8 | % | |||||||||||||||||||
Adjusted EBITDA | $ | 482.3 | $ | 500.0 | $ | 521.0 | 3.7 | % | 8.0 | % | |||||||||||||||||||
Adjusted diluted EPS* | $ | 6.19 | $ | 6.43 | $ | 6.77 | 3.9 | % | 9.4 | % |
December 31, |
|||||||||||
2023 | 2022 | ||||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | 737,612 | $ | 652,793 | |||||||
Short-term investments | 27,109 | 58,421 | |||||||||
Accounts receivable, net of allowances of $6,871 and $6,868, respectively |
337,703 | 304,739 | |||||||||
Prepaid expenses and other current assets | 88,570 | 68,319 | |||||||||
Total current assets | 1,190,994 | 1,084,272 | |||||||||
Long-term investments | 140,906 | 127,871 | |||||||||
Property and equipment, net of accumulated depreciation of $327,015 and $255,586, respectively |
188,169 | 178,184 | |||||||||
Intangible assets, net | 325,406 | 462,815 | |||||||||
Goodwill | 1,546,065 | 1,591,474 | |||||||||
Deferred income taxes | 8,731 | 8,523 | |||||||||
Other assets | 70,751 | 80,131 | |||||||||
TOTAL ASSETS | $ | 3,471,022 | $ | 3,533,270 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Accounts payable | $ | 123,256 | $ | 120,829 | |||||||
Accrued employee related costs | 50,068 | 42,178 | |||||||||
Other accrued liabilities | 43,612 | 39,539 | |||||||||
Income taxes payable, current | 14,458 | 19,712 | |||||||||
Deferred revenue, current | 184,549 | 187,904 | |||||||||
Other current liabilities | 15,890 | 22,286 | |||||||||
Total current liabilities | 431,833 | 432,448 | |||||||||
Long-term debt | 1,001,312 | 999,053 | |||||||||
Deferred revenue, noncurrent | 8,169 | 9,103 | |||||||||
Deferred income taxes | 45,503 | 79,007 | |||||||||
Income taxes payable, noncurrent | 8,486 | 11,675 | |||||||||
Other long-term liabilities | 82,721 | 109,373 | |||||||||
TOTAL LIABILITIES | 1,578,024 | 1,640,659 | |||||||||
Common stock | 461 | 473 | |||||||||
Additional paid-in capital | 472,201 | 439,681 | |||||||||
Retained earnings | 1,491,956 | 1,537,830 | |||||||||
Accumulated other comprehensive loss | (71,620) | (85,373) | |||||||||
TOTAL STOCKHOLDERS’ EQUITY | 1,892,998 | 1,892,611 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 3,471,022 | $ | 3,533,270 |
Three months ended December 31, | Year ended December 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Total revenues | $ | 389,885 | $ | 396,700 | $ | 1,364,028 | $ | 1,390,997 | |||||||||||||||
Operating costs and expenses: | |||||||||||||||||||||||
Direct costs |
48,615 | 50,847 | 197,292 | 195,554 | |||||||||||||||||||
Sales and marketing | 126,449 | 129,764 | 487,365 | 490,777 | |||||||||||||||||||
Research, development, and engineering | 15,532 | 18,210 | 68,860 | 74,093 | |||||||||||||||||||
General, administrative, and other related costs |
118,569 | 104,421 | 421,050 | 404,263 | |||||||||||||||||||
Goodwill impairment on business | — | — | 56,850 | 27,369 | |||||||||||||||||||
Total operating costs and expenses | 309,165 | 303,242 | 1,231,417 | 1,192,056 | |||||||||||||||||||
Income from operations |
80,720 | 93,458 | 132,611 | 198,941 | |||||||||||||||||||
Interest expense, net | (2,251) | (5,423) | (20,031) | (33,842) | |||||||||||||||||||
Gain on debt extinguishment, net | — | — | — | 11,505 | |||||||||||||||||||
Gain (loss) on investments, net | — | 1,029 | 357 | (46,743) | |||||||||||||||||||
Unrealized gain (loss) on short-term investments held at the reporting date, net |
1,065 | 7,020 | (28,495) | (7,145) | |||||||||||||||||||
Other (loss) income, net | (3,486) | (4,525) | (9,468) | 8,437 | |||||||||||||||||||
Income from continuing operations before income taxes and income (loss) from equity method investment, net |
76,048 | 91,559 | 74,974 | 131,153 | |||||||||||||||||||
Income tax expense | (12,962) | (24,726) | (24,142) | (57,957) | |||||||||||||||||||
Income (loss) from equity method investment, net of income taxes |
336 | 2,347 | (9,329) | (7,730) | |||||||||||||||||||
Net income from continuing operations | 63,422 | 69,180 | 41,503 | 65,466 | |||||||||||||||||||
Loss from discontinued operations, net of income taxes | — | (1,709) | — | (1,709) | |||||||||||||||||||
Net income |
$ | 63,422 | $ | 67,471 | $ | 41,503 | $ | 63,757 | |||||||||||||||
Net income per common share from continuing operations: | |||||||||||||||||||||||
Basic | $ | 1.39 | $ | 1.47 | $ | 0.89 | $ | 1.39 | |||||||||||||||
Diluted | $ | 1.29 | $ | 1.37 | $ | 0.89 | $ | 1.39 | |||||||||||||||
Net loss per common share from discontinued operations: |
|||||||||||||||||||||||
Basic | $ | — | $ | (0.04) | $ | — | $ | (0.04) | |||||||||||||||
Diluted | $ | — | $ | (0.03) | $ | — | $ | (0.04) | |||||||||||||||
Net income per common share: |
|||||||||||||||||||||||
Basic | $ | 1.39 | $ | 1.44 | $ | 0.89 | $ | 1.36 | |||||||||||||||
Diluted | $ | 1.29 | $ | 1.34 | $ | 0.89 | $ | 1.36 | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | 45,772,689 | 46,915,647 | 46,400,941 | 46,954,558 | |||||||||||||||||||
Diluted | 50,985,086 | 52,114,995 | 46,464,261 | 47,025,849 |
Year ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income |
$ | 41,503 | $ | 63,757 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||||||
Depreciation and amortization | 236,966 | 233,400 | |||||||||
Non-cash operating lease costs | 11,141 | 13,412 | |||||||||
Share-based compensation | 31,920 | 26,601 | |||||||||
Provision for credit losses (benefit) on accounts receivable | 2,809 | (255) | |||||||||
Deferred income taxes, net | (30,017) | (12,991) | |||||||||
Gain on extinguishment of debt, net | — | (11,505) | |||||||||
Goodwill impairment on business | 56,850 | 27,369 | |||||||||
Changes in fair value of contingent consideration | (200) | (2,575) | |||||||||
Loss from equity method investments | 9,329 | 7,730 | |||||||||
Unrealized loss on short-term investments held at the reporting date | 28,495 | 7,145 | |||||||||
(Gain) loss on investment, net | (357) | 46,743 | |||||||||
Other | 5,159 | 3,637 | |||||||||
Decrease (increase) in: | |||||||||||
Accounts receivable | (35,371) | 14,948 | |||||||||
Prepaid expenses and other current assets | (8,700) | 9,665 | |||||||||
Other assets | (5,574) | (16,240) | |||||||||
Increase (decrease) in: | |||||||||||
Accounts payable | 9,419 | (20,246) | |||||||||
Deferred revenue | (6,802) | (20,962) | |||||||||
Accrued liabilities and other current liabilities | (26,608) | (33,189) | |||||||||
Net cash provided by operating activities |
319,962 | 336,444 | |||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment | (108,729) | (106,154) | |||||||||
Acquisition of businesses, net of cash received | (9,492) | (104,094) | |||||||||
Investment in available-for-sale securities | — | (15,000) | |||||||||
Purchase of equity investments | (11,858) | — | |||||||||
Proceeds from sale of equity investments | 3,174 | 4,527 | |||||||||
Other | (503) | (50) | |||||||||
Net cash used in investing activities | (127,408) | (220,771) | |||||||||
Cash flows from financing activities: | |||||||||||
Payment of debt | — | (166,904) | |||||||||
Proceeds from term loan | — | 112,286 | |||||||||
Debt extinguishment costs | — | (756) | |||||||||
Repurchase of common stock | (108,527) | (78,291) | |||||||||
Issuance of common stock under employee stock purchase plan | 8,727 | 9,431 | |||||||||
Proceeds from exercise of stock options | — | 148 | |||||||||
Deferred payments for acquisitions | (15,241) | (16,116) | |||||||||
Other | 250 | (630) | |||||||||
Net cash used in financing activities |
(114,791) | (140,832) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | 7,056 | (16,890) | |||||||||
Net change in cash and cash equivalents | 84,819 | (42,049) | |||||||||
Cash and cash equivalents at beginning of year | 652,793 | 694,842 | |||||||||
Cash and cash equivalents at end of year | $ | 737,612 | $ | 652,793 |
Three months ended December 31, | Year ended December 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income from continuing operations |
$ | 63,422 | $ | 69,180 | $ | 41,503 | $ | 65,466 | |||||||||||||||
Interest expense, net | 2,251 | 5,423 | 20,031 | 33,842 | |||||||||||||||||||
Gain on debt extinguishment, net | — | — | — | (11,505) | |||||||||||||||||||
Unrealized (gain) loss on short-term investments held at the reporting date, net |
(1,065) | (7,020) | 28,495 | 7,145 | |||||||||||||||||||
(Gain) loss on investments, net | — | (1,029) | (357) | 46,743 | |||||||||||||||||||
Other loss (income), net |
3,486 | 4,525 | 9,468 | (8,437) | |||||||||||||||||||
Income tax expense |
12,962 | 24,726 | 24,142 | 57,957 | |||||||||||||||||||
(Income) loss from equity method investment, net |
(336) | (2,347) | 7,829 | 7,730 | |||||||||||||||||||
Depreciation and amortization | 69,633 | 58,520 | 236,966 | 233,400 | |||||||||||||||||||
Share-based compensation | 7,527 | 5,795 | 31,920 | 26,601 | |||||||||||||||||||
Acquisition, integration, and other costs | 9,649 | 9,753 | 21,000 | 17,426 | |||||||||||||||||||
Disposal related costs | 375 | — | 2,217 | 1,328 | |||||||||||||||||||
Lease asset impairments and other charges | (338) | 778 | 2,245 | 2,178 | |||||||||||||||||||
Goodwill impairment on business | — | — | 56,850 | 27,369 | |||||||||||||||||||
Adjusted EBITDA | $ | 167,566 | $ | 168,304 | $ | 482,309 | $ | 507,243 |
Three months ended December 31, 2023 | |||||||||||||||||||||||
Digital Media |
Cybersecurity and Martech |
Corporate | Total | ||||||||||||||||||||
Revenues | $ | 317,939 | $ | 71,946 | $ | — | $ | 389,885 | |||||||||||||||
Income (loss) from operations |
$ | 88,709 | $ | 5,430 | $ | (13,419) | $ | 80,720 | |||||||||||||||
Depreciation and amortization | 51,168 | 18,457 | 8 | 69,633 | |||||||||||||||||||
Share-based compensation | 2,661 | 932 | 3,934 | 7,527 | |||||||||||||||||||
Acquisition, integration, and other costs | 9,220 | 420 | 9 | 9,649 | |||||||||||||||||||
Disposal related costs | 251 | — | 124 | 375 | |||||||||||||||||||
Lease asset impairments and other charges | (544) | 206 | — | (338) | |||||||||||||||||||
Adjusted EBITDA | $ | 151,465 | $ | 25,445 | $ | (9,344) | $ | 167,566 |
Three months ended December 31, 2022 | |||||||||||||||||||||||
Digital Media |
Cybersecurity and Martech | Corporate | Total | ||||||||||||||||||||
Revenues | $ | 321,670 | $ | 75,030 | $ | — | $ | 396,700 | |||||||||||||||
Income (loss) from operations | $ | 95,015 | $ | 11,554 | $ | (13,111) | $ | 93,458 | |||||||||||||||
Depreciation and amortization | 46,361 | 12,149 | 10 | 58,520 | |||||||||||||||||||
Share-based compensation | 2,225 | 563 | 3,007 | 5,795 | |||||||||||||||||||
Acquisition, integration, and other costs | 7,784 | 1,179 | 790 | 9,753 | |||||||||||||||||||
Lease asset impairments and other charges | 791 | (13) | — | 778 | |||||||||||||||||||
Adjusted EBITDA | $ | 152,176 | $ | 25,432 | $ | (9,304) | $ | 168,304 |
Year ended December 31, 2023 | |||||||||||||||||||||||
Digital Media |
Cybersecurity and Martech |
Corporate | Total | ||||||||||||||||||||
Revenues | $ | 1,072,819 | $ | 291,209 | $ | — | $ | 1,364,028 | |||||||||||||||
Income (loss) from operations |
$ | 140,839 | $ | 43,210 | $ | (51,438) | $ | 132,611 | |||||||||||||||
Income from equity method investment, net | — | — | (1,500) | (1,500) | |||||||||||||||||||
Depreciation and amortization | 184,320 | 52,618 | 28 | 236,966 | |||||||||||||||||||
Share-based compensation | 12,680 | 4,186 | 15,054 | 31,920 | |||||||||||||||||||
Acquisition, integration, and other costs | 19,913 | 887 | 200 | 21,000 | |||||||||||||||||||
Disposal related costs | 704 | 202 | 1,311 | 2,217 | |||||||||||||||||||
Lease asset impairments and other charges | 1,774 | 471 | — | 2,245 | |||||||||||||||||||
Goodwill impairment on a business | 56,850 | — | — | 56,850 | |||||||||||||||||||
Adjusted EBITDA | $ | 417,080 | $ | 101,574 | $ | (36,345) | $ | 482,309 |
Year ended December 31, 2022 | |||||||||||||||||||||||
Digital Media |
Cybersecurity and Martech | Corporate | Total | ||||||||||||||||||||
Revenues | $ | 1,078,391 | $ | 312,606 | $ | — | $ | 1,390,997 | |||||||||||||||
Income (loss) from operations | $ | 198,171 | $ | 50,960 | $ | (50,190) | $ | 198,941 | |||||||||||||||
Depreciation and amortization | 184,658 | 48,714 | 28 | 233,400 | |||||||||||||||||||
Share-based compensation | 10,433 | 4,280 | 11,888 | 26,601 | |||||||||||||||||||
Acquisition, integration, and other costs | 14,121 | 2,111 | 1,194 | 17,426 | |||||||||||||||||||
Disposal related costs | 11 | — | 1,317 | 1,328 | |||||||||||||||||||
Lease asset impairments and other charges | 1,631 | 547 | — | 2,178 | |||||||||||||||||||
Goodwill impairment on a business | 27,369 | — | — | 27,369 | |||||||||||||||||||
Adjusted EBITDA | $ | 436,394 | $ | 106,612 | $ | (35,763) | $ | 507,243 |
Three months ended December 31, | |||||||||||||||||||||||
2023 | Per diluted share* | 2022 | Per diluted share* | ||||||||||||||||||||
Net income from continuing operations | $ | 63,422 | $ | 1.29 | $ | 69,180 | $ | 1.37 | |||||||||||||||
Interest costs, net |
(20) | — | 120 | — | |||||||||||||||||||
Loss on sale of business |
276 | 0.01 | — | — | |||||||||||||||||||
Unrealized gain on short-term investments held at the reporting date, net |
(775) | (0.02) | (2,839) | (0.06) | |||||||||||||||||||
Gain on investments, net |
— | — | (1,024) | (0.02) | |||||||||||||||||||
Income from equity method investment, net |
(336) | (0.01) | (2,347) | (0.05) | |||||||||||||||||||
Amortization | 31,105 | 0.68 | 28,696 | 0.61 | |||||||||||||||||||
Share-based compensation | 6,289 | 0.14 | 6,044 | 0.13 | |||||||||||||||||||
Acquisition, integration, and other costs | 7,011 | 0.15 | 7,401 | 0.16 | |||||||||||||||||||
Disposal related costs | 238 | 0.01 | 395 | 0.01 | |||||||||||||||||||
Lease asset impairments and other charges | (224) | — | 559 | 0.01 | |||||||||||||||||||
Goodwill impairment on business | — | — | (222) | — | |||||||||||||||||||
Dilutive effect of the convertible debt |
— | 0.08 | — | 0.10 | |||||||||||||||||||
Adjusted net income from continuing operations | $ | 106,986 | $ | 2.33 | $ | 105,963 | $ | 2.26 |
Year ended December 31, | |||||||||||||||||||||||
2023 | Per diluted share* | 2022 | Per diluted share* | ||||||||||||||||||||
Net income from continuing operations | $ | 41,503 | $ | 0.89 | $ | 65,466 | $ | 1.39 | |||||||||||||||
Interest costs, net |
5,881 | 0.13 | 374 | 0.01 | |||||||||||||||||||
Gain on debt extinguishment, net | — | — | (9,094) | (0.19) | |||||||||||||||||||
Loss on sale of business |
3,797 | 0.08 | — | — | |||||||||||||||||||
Unrealized loss on short-term investments held at the reporting date, net |
21,371 | 0.46 | 22,674 | 0.48 | |||||||||||||||||||
(Gain) loss on investments, net | (268) | (0.01) | 46,275 | 0.99 | |||||||||||||||||||
Loss from equity method investment, net |
8,204 | 0.18 | 7,730 | 0.16 | |||||||||||||||||||
Amortization | 106,593 | 2.30 | 119,170 | 2.53 | |||||||||||||||||||
Share-based compensation | 27,100 | 0.58 | 23,209 | 0.49 | |||||||||||||||||||
Acquisition, integration, and other costs | 13,498 | 0.29 | 13,278 | 0.28 | |||||||||||||||||||
Disposal related costs | 1,538 | 0.03 | 1,449 | 0.03 | |||||||||||||||||||
Lease asset impairment and other charges | 1,295 | 0.04 | 1,640 | 0.03 | |||||||||||||||||||
Goodwill impairment on business | 56,850 | 1.22 | 20,414 | 0.43 | |||||||||||||||||||
Dilutive effect of the convertible debt | — | — | — | 0.02 | |||||||||||||||||||
Adjusted net income from continuing operations | $ | 287,362 | $ | 6.19 | $ | 312,585 | $ | 6.65 |
Three months ended December 31, 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, 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 | |||||||||||||||||||||||||||
Direct costs |
$ | (48,615) | $ | — | $ | — | $ | — | $ | — | $ | 124 | $ | 15 | $ | 2,561 | $ | — | $ | — | $ | (45,915) | |||||||||||||
Sales and marketing | $ | (126,449) | — | — | — | — | — | 392 | 1,668 | — | — | $ | (124,389) | ||||||||||||||||||||||
Research, development, and engineering | $ | (15,532) | — | — | — | — | — | 660 | 177 | — | — | $ | (14,695) | ||||||||||||||||||||||
General, administrative, and other related costs |
$ | (118,569) | — | — | — | — | 44,867 | 6,460 | 5,243 | 375 | (338) | $ | (61,962) | ||||||||||||||||||||||
Interest expense, net | $ | (2,251) | (11) | — | — | — | — | — | — | — | — | $ | (2,262) | ||||||||||||||||||||||
Unrealized gain on short-term investments held at period end, net |
$ | 1,065 | — | — | (1,065) | — | — | — | — | — | — | $ | — | ||||||||||||||||||||||
Other loss, net |
$ | (3,486) | — | 422 | — | — | — | — | 459 | — | — | $ | (2,605) | ||||||||||||||||||||||
Income tax expense | $ | (12,962) | (9) | (146) | 290 | — | (13,886) | (1,238) | (3,097) | (137) | 114 | $ | (31,071) | ||||||||||||||||||||||
Income from equity method investment, net |
$ | 336 | — | — | — | (336) | — | — | — | — | — | $ | — | ||||||||||||||||||||||
Total non-GAAP adjustments | $ | (20) | $ | 276 | $ | (775) | $ | (336) | $ | 31,105 | $ | 6,289 | $ | 7,011 | $ | 238 | $ | (224) |
Three months ended December 31, 2022 | ||||||||||||||||||||||||||||||||||||||
GAAP amount | Adjustments | Adjusted non-GAAP amount | ||||||||||||||||||||||||||||||||||||
Interest costs, net | Unrealized (gain) loss on short-term investments held at the reporting date, net | (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 | Goodwill impairment of business | |||||||||||||||||||||||||||||
Direct costs |
$ | (50,847) | $ | — | $ | — | $ | — | $ | — | $ | 221 | $ | 52 | $ | 245 | $ | — | $ | — | $ | — | $ | (50,329) | ||||||||||||||
Sales and marketing | $ | (129,764) | — | — | — | — | — | 636 | 3,825 | — | — | — | $ | (125,303) | ||||||||||||||||||||||||
Research, development, and engineering | $ | (18,210) | — | — | — | — | — | 455 | 528 | — | — | — | $ | (17,227) | ||||||||||||||||||||||||
General, administrative, and other related costs |
$ | (104,421) | — | — | — | — | 37,641 | 4,652 | 5,155 | — | 778 | — | $ | (56,195) | ||||||||||||||||||||||||
Interest expense, net | $ | (5,423) | 96 | — | — | — | — | — | — | — | — | — | $ | (5,327) | ||||||||||||||||||||||||
Gain on investment, net | $ | 1,029 | — | — | (1,029) | — | — | — | — | — | — | — | $ | — | ||||||||||||||||||||||||
Unrealized gain on short-term investments held at period end, net |
$ | 7,020 | — | (7,020) | — | — | — | — | — | — | — | — | $ | — | ||||||||||||||||||||||||
Other loss, net |
$ | (4,525) | — | — | — | — | — | — | (195) | 314 | — | — | $ | (4,406) | ||||||||||||||||||||||||
Income tax expense | $ | (24,726) | 24 | 4,181 | 5 | — | (9,166) | 249 | (2,157) | 81 | (219) | (222) | $ | (31,950) | ||||||||||||||||||||||||
Income from equity method investment, net |
$ | 2,347 | — | — | — | (2,347) | — | — | — | — | — | — | $ | — | ||||||||||||||||||||||||
Total non-GAAP adjustments | $ | 120 | $ | (2,839) | $ | (1,024) | $ | (2,347) | $ | 28,696 | $ | 6,044 | $ | 7,401 | $ | 395 | $ | 559 | $ | (222) |
Year ended December 31, 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, net | (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 | Goodwill impairment of business | |||||||||||||||||||||||||||||||
Direct costs |
$ | (197,292) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 667 | $ | 262 | $ | 2,752 | $ | — | $ | — | $ | — | $ | (193,611) | |||||||||||||||
Sales and marketing | $ | (487,365) | — | — | — | — | — | — | 2,686 | 4,796 | 4 | — | — | $ | (479,879) | ||||||||||||||||||||||||||
Research, development, and engineering | $ | (68,860) | — | — | — | — | — | — | 3,245 | 712 | 3 | — | — | $ | (64,900) | ||||||||||||||||||||||||||
General, administrative, and other related costs |
$ | (421,050) | — | — | — | — | (1,500) | 144,904 | 25,727 | 12,740 | 2,210 | 2,245 | — | $ | (234,724) | ||||||||||||||||||||||||||
Goodwill impairment on business | $ | (56,850) | — | — | — | — | — | — | — | — | — | — | 56,850 | $ | — | ||||||||||||||||||||||||||
Interest expense, net | $ | (20,031) | 7,797 | (538) | — | — | — | — | — | — | — | — | — | $ | (12,772) | ||||||||||||||||||||||||||
Gain on investment, net | $ | 357 | — | — | — | (357) | — | — | — | — | — | — | — | $ | — | ||||||||||||||||||||||||||
Unrealized loss on short-term investments held at period end, net | $ | (28,495) | — | — | 28,495 | — | — | — | — | — | — | — | — | $ | — | ||||||||||||||||||||||||||
Other loss, net | $ | (9,468) | — | 5,655 | — | — | — | — | — | 459 | — | — | — | $ | (3,354) | ||||||||||||||||||||||||||
Income tax expense | $ | (24,142) | (1,916) | (1,320) | (7,124) | 89 | 375 | (38,978) | (4,820) | (7,961) | (679) | (950) | — | $ | (87,426) | ||||||||||||||||||||||||||
Loss from equity method investment, net | $ | (9,329) | — | — | — | — | 9,329 | — | — | — | — | — | — | $ | — | ||||||||||||||||||||||||||
Total non-GAAP adjustments | $ | 5,881 | $ | 3,797 | $ | 21,371 | $ | (268) | $ | 8,204 | $ | 106,593 | $ | 27,100 | $ | 13,498 | $ | 1,538 | $ | 1,295 | $ | 56,850 |
Year ended December 31, 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, net | (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 | Goodwill impairment of business | |||||||||||||||||||||||||||||||
Direct costs |
$ | (195,554) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1,000 | $ | 341 | $ | 364 | $ | — | $ | — | $ | — | $ | (193,849) | |||||||||||||||
Sales and marketing | $ | (490,777) | — | — | — | — | — | — | 3,083 | 6,293 | — | — | — | $ | (481,401) | ||||||||||||||||||||||||||
Research, development, and engineering | $ | (74,093) | — | — | — | — | — | — | 2,503 | 1,199 | — | — | — | $ | (70,391) | ||||||||||||||||||||||||||
General, administrative, and other related costs |
$ | (404,263) | — | — | — | — | — | 156,922 | 20,674 | 9,570 | 1,328 | 2,178 | — | $ | (213,591) | ||||||||||||||||||||||||||
Goodwill impairment on business | $ | (27,369) | — | — | — | — | — | — | — | — | — | — | 27,369 | $ | — | ||||||||||||||||||||||||||
Interest expense, net | $ | (33,842) | 433 | — | — | — | — | — | — | — | — | — | — | $ | (33,409) | ||||||||||||||||||||||||||
Gain on debt extinguishment, net | $ | 11,505 | — | (12,060) | — | — | — | — | — | — | — | — | — | $ | (555) | ||||||||||||||||||||||||||
Loss on investment, net | $ | (46,743) | — | — | — | 46,743 | — | — | — | — | — | — | — | $ | — | ||||||||||||||||||||||||||
Unrealized loss on short-term investments held at period end, net |
$ | (7,145) | — | — | 7,145 | — | — | — | — | — | — | — | — | $ | — | ||||||||||||||||||||||||||
Other income, net | $ | 8,437 | — | — | — | (624) | — | — | — | (195) | 203 | — | — | $ | 7,821 | ||||||||||||||||||||||||||
Income tax expense | $ | (57,957) | (59) | 2,966 | 15,529 | 156 | — | (38,752) | (3,392) | (3,953) | (82) | (538) | (6,955) | $ | (93,037) | ||||||||||||||||||||||||||
Loss from equity method investment, net | $ | (7,730) | — | — | — | — | 7,730 | — | — | — | — | — | — | $ | — | ||||||||||||||||||||||||||
Total non-GAAP adjustments | $ | 374 | $ | (9,094) | $ | 22,674 | $ | 46,275 | $ | 7,730 | $ | 119,170 | $ | 23,209 | $ | 13,278 | $ | 1,449 | $ | 1,640 | $ | 20,414 |
2023 | Q1 | Q2 | Q3 | Q4 | YTD | ||||||||||||||||||||||||
Net cash provided by operating activities | $ | 115,307 | $ | 39,728 | $ | 72,808 | $ | 92,119 | $ | 319,962 | |||||||||||||||||||
Less: Purchases of property and equipment | (30,017) | (25,233) | (27,226) | (26,253) | (108,729) | ||||||||||||||||||||||||
Free cash flow | $ | 85,290 | $ | 14,495 | $ | 45,582 | $ | 65,866 | $ | 211,233 |
2022 | Q1 | Q2 | Q3 | Q4 | YTD | ||||||||||||||||||||||||
Net cash provided by operating activities from continuing and discontinued operations |
$ | 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 from continuing and discontinued operations |
$ | 86,009 | $ | 52,599 | $ | 73,844 | $ | 17,838 | $ | 230,290 |