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MONDAY.COM LTD.
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By:
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/s/ Shiran Nawi
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Name: Shiran Nawi
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Title: Chief People and Legal Officer
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Exhibit
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Description
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Three months ended
September 30,
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Nine months ended
September 30,
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|||||||||||||||
2023
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2022
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2023
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2022
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|||||||||||||
(unaudited)
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(unaudited)
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|||||||||||||||
Revenue
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$
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189,190
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$
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136,893
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$
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527,125
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$
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369,108
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||||||||
Cost of revenue
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21,707
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17,830
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58,237
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49,169
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||||||||||||
Gross profit
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167,483
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119,063
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468,888
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319,939
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||||||||||||
Operating expenses:
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||||||||||||||||
Research and development
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38,433
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33,984
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114,602
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94,487
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||||||||||||
Sales and marketing
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108,360
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90,970
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323,483
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303,683
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||||||||||||
General and administrative
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23,211
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22,348
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68,243
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63,684
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||||||||||||
Total operating expenses
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170,004
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147,302
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506,328
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461,854
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||||||||||||
Operating loss
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(2,521
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)
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(28,239
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)
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(37,440
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)
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(141,915
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)
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||||||||
Financial income, net
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11,555
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6,972
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29,050
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11,417
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||||||||||||
Income (loss) before income taxes
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9,034
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(21,267
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)
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(8,390
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)
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(130,498
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)
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|||||||||
Income tax
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(1,546
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)
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(1,763
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)
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(5,824
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)
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(4,881
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)
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||||||||
Net income (loss)
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$
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7,488
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$
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(23,030
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)
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$
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(14,214
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)
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$
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(135,379
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)
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|||||
Net income (loss) per share, basic
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$
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0.15
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$
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(0.51
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)
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$
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(0.29
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)
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$
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(3.00
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)
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|||||
Net income (loss) per share, diluted
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0.15
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(0.51
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)
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(0.29
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)
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(3.00
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)
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|||||||||
Weighted-average ordinary shares used in calculating net income (loss) per ordinary share, basic
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48,536,315
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45,477,804
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48,221,457
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45,179,821
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||||||||||||
Weighted-average ordinary shares used in calculating net income (loss) per ordinary share, diluted
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51,461,709
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45,477,804
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48,221,457
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45,179,821
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September 30,
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December 31,
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|||||||
2023
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2022
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ASSETS
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(unaudited)
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(audited)
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||||||
CURRENT ASSETS:
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||||||||
Cash and cash equivalents
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$
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1,054,270
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$
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885,894
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||||
Accounts receivable, net
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13,806
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13,226
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||||||
Prepaid expenses and other current assets
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27,909
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24,725
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||||||
Total current assets
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1,095,985
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923,845
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||||||
LONG-TERM ASSETS:
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||||||||
Property and equipment, net
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36,456
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34,416
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||||||
Operating lease right-of-use assets
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67,352
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80,197
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||||||
Other long-term assets
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615
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585
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||||||
Total long-term assets
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104,423
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115,198
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||||||
Total assets
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$
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1,200,408
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$
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1,039,043
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LIABILITIES AND SHAREHOLDERS' EQUITY
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||||||||
CURRENT LIABILITIES:
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||||||||
Accounts payable
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$
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16,087
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$
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7,335
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||||
Accrued expenses and other current liabilities
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96,507
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73,706
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||||||
Deferred revenue, current
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257,629
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198,099
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||||||
Operating lease liabilities, current
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18,455
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19,083
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||||||
Total current liabilities
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388,678
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298,223
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LONG-TERM LIABILITIES
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||||||||
Operating lease liabilities, non-current
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45,455
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58,638
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Deferred revenue, non-current
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3,854
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2,442
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||||||
Total long-term liabilities
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49,309
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61,080
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||||||
Total liabilities
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437,987
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359,303
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SHAREHOLDERS' EQUITY:
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Other comprehensive loss
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(2,520
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)
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(3,210
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)
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||||
Share capital and additional paid-in capital
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1,361,682
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1,265,477
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||||||
Accumulated deficit
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(596,741
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)
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(582,527
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)
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||||
Total shareholders’ equity
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762,421
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679,740
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||||||
Total liabilities and shareholders’ equity
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$
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1,200,408
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$
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1,039,043
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Three months ended
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Nine months ended
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|||||||||||||||
September 30,
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September 30,
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|||||||||||||||
2023
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2022
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2023
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2022
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|||||||||||||
(unaudited)
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(unaudited)
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|||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
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||||||||||||||||
Net income (loss)
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$
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7,488
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$
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(23,030
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)
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$
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(14,214
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)
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$
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(135,379
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)
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|||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
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Depreciation and amortization
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2,331
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2,860
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6,467
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5,384
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Share-based compensation
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26,598
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26,054
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77,841
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80,542
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||||||||||||
Changes in operating assets and liabilities:
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||||||||||||||||
Accounts receivable, net
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1,330
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(4,956
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)
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(580
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)
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(5,957
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)
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Prepaid expenses and other assets
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4,338
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5,638
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10,325
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2,343
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||||||||||||
Accounts payable
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5,154
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(4,126
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)
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8,750
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(16,750
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)
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Accrued expenses and other liabilities, net
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7,513
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6,087
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7,365
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7,927
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||||||||||||
Deferred revenue
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11,827
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11,503
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60,942
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54,947
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||||||||||||
Net cash provided by (used in) operating activities
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66,579
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20,030
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156,896
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(6,943
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)
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CASH FLOWS FROM INVESTING ACTIVITIES:
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Purchase of property and equipment
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(779
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)
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(5,339
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)
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(5,463
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)
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(12,243
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)
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||||||||
Capitalized software development costs
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(910
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)
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(732
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)
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(1,929
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)
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(2,342
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)
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||||||||
Net cash used in investing activities
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(1,689
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)
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(6,071
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)
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(7,392
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)
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(14,585
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)
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||||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
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||||||||||||||||
Proceeds from exercise of share options and employee share purchase plan
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4,351
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3,572
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14,704
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8,277
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||||||||||||
Receipt (repayment) of tax advance relating to exercises of share options and RSUs, net
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(4,348
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)
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435
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4,168
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(20,932
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)
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||||||||||
Capital lease payments
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-
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(18
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)
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-
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(61
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)
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||||||||||
Net cash provided by (used in) financing activities
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3
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3,989
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18,872
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(12,716
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)
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INCREASE (DECREASE) IN CASH, AND CASH EQUIVALENTS
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64,893
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17,948
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168,376
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(34,244
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)
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|||||||||||
CASH AND CASH EQUIVALENTS - Beginning of period
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989,377
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834,620
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885,894
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886,812
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||||||||||||
CASH AND CASH EQUIVALENTS - End of period
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$
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1,054,270
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$
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852,568
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$
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1,054,270
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$
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852,568
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Three months ended
September 30,
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Nine months ended
September 30,
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|||||||||||||||
2023
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2022
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2023
|
2022
|
|||||||||||||
(unaudited)
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(unaudited)
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|||||||||||||||
Reconciliation of gross profit and gross margin
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||||||||||||||||
GAAP gross profit
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$
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167,483
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$
|
119,063
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$
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468,888
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$
|
319,939
|
||||||||
Share-based compensation
|
1,383
|
2,683
|
4,705
|
8,039
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||||||||||||
Non-GAAP gross profit
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$
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168,866
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$
|
121,746
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$
|
473,593
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$
|
327,978
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||||||||
GAAP gross margin
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89
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%
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87
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%
|
89
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%
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87
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%
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||||||||
Non-GAAP gross margin
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89
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%
|
89
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%
|
90
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%
|
89
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%
|
||||||||
Reconciliation of operating expenses
|
||||||||||||||||
GAAP research and development
|
$
|
38,433
|
$
|
33,984
|
$
|
114,602
|
$
|
94,487
|
||||||||
Share-based compensation
|
(10,382
|
)
|
(7,725
|
)
|
(30,124
|
)
|
(25,112
|
)
|
||||||||
Non-GAAP research and development
|
$
|
28,051
|
$
|
26,259
|
$
|
84,478
|
$
|
69,375
|
||||||||
GAAP sales and marketing
|
$
|
108,360
|
$
|
90,970
|
$
|
323,483
|
$
|
303,683
|
||||||||
Share-based compensation
|
(6,856
|
)
|
(8,538
|
)
|
(20,496
|
)
|
(25,991
|
)
|
||||||||
Non-GAAP sales and marketing
|
$
|
101,504
|
$
|
82,432
|
$
|
302,987
|
$
|
277,692
|
||||||||
GAAP general and administrative
|
$
|
23,211
|
$
|
22,348
|
$
|
68,243
|
$
|
63,684
|
||||||||
Share-based compensation
|
(7,977
|
)
|
(7,108
|
)
|
(22,516
|
)
|
(21,400
|
)
|
||||||||
Non-GAAP general and administrative
|
$
|
15,234
|
$
|
15,240
|
$
|
45,727
|
$
|
42,284
|
||||||||
Reconciliation of operating income (loss)
|
||||||||||||||||
GAAP operating loss
|
$
|
(2,521
|
)
|
$
|
(28,239
|
)
|
$
|
(37,440
|
)
|
$
|
(141,915
|
)
|
||||
Share-based compensation
|
26,598
|
26,054
|
77,841
|
80,542
|
||||||||||||
Non-GAAP operating income (loss)
|
$
|
24,077
|
$
|
(2,185
|
)
|
$
|
40,401
|
$
|
(61,373
|
)
|
||||||
GAAP operating margin
|
(1
|
)%
|
(21
|
)%
|
(7
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)%
|
(38
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)%
|
||||||||
Non-GAAP operating margin
|
13
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%
|
(2
|
)%
|
8
|
%
|
(17
|
)%
|
Reconciliation of net income (loss)
|
||||||||||||||||
GAAP net income (loss)
|
$
|
7,488
|
$
|
(23,030
|
)
|
$
|
(14,214
|
)
|
$
|
(135,379
|
)
|
|||||
Share-based compensation
|
26,598
|
26,054
|
77,841
|
80,542
|
||||||||||||
Tax benefit related to share-based compensation(1)
|
(1,075
|
)
|
(448
|
)
|
(2,420
|
)
|
(743
|
)
|
||||||||
Non-GAAP net income (loss)
|
$
|
33,011
|
$
|
2,576
|
$
|
61,207
|
$
|
(55,580
|
)
|
|||||||
Reconciliation of weighted average number of shares outstanding
|
||||||||||||||||
Weighted-average ordinary shares used in calculating GAAP and Non-GAAP net income (loss) per ordinary share, basic
|
48,536,315
|
45,477,804
|
48,221,457
|
45,179,821
|
||||||||||||
Effect of dilutive shares(2)
|
2,925,394
|
4,832,112
|
2,919,075
|
-
|
||||||||||||
Weighted-average ordinary shares used in calculating Non-GAAP net income (loss) per ordinary share, diluted
|
51,461,709
|
50,309,916
|
51,140,532
|
45,179,821
|
||||||||||||
GAAP net income (loss) per share, basic
|
$
|
0.15
|
$
|
(0.51
|
)
|
$
|
(0.29
|
)
|
$
|
(3.00
|
)
|
|||||
GAAP net income per share, diluted
|
$
|
0.15
|
$
|
(0.51
|
)
|
$
|
(0.29
|
)
|
$
|
(3.00
|
)
|
|||||
Non-GAAP net income (loss) per share, basic
|
$
|
0.68
|
$
|
0.06
|
$
|
1.27
|
$
|
(1.23
|
)
|
|||||||
Non-GAAP net income per share, diluted
|
$
|
0.64
|
$
|
0.05
|
$
|
1.20
|
$
|
(1.23
|
)
|
|
(1) |
The tax benefits generated from the exercise of the disqualifying disposition of incentive share options were excluded in calculating non-GAAP net income (loss) and non-GAAP net income (loss) per basic and diluted share. The Company
believes that excluding these tax benefits enables investors to see the full effect that excluding share-based compensation expenses had on the operating results.
|
|
(2) |
The effect of these dilutive shares was not included in the GAAP calculation of diluted net loss per share because the effect would have been anti-dilutive, with the exception of the three months ended September 30, 2023.
|
Three months ended
September 30,
|
||||||||
2023
|
2022
|
|||||||
(unaudited)
|
||||||||
Revenue growth as reported
|
38
|
%
|
65
|
%
|
||||
Impact of foreign currency
|
0
|
%
|
3
|
%
|
||||
Revenue growth, FX adjusted
|
38
|
%
|
68
|
%
|
Three months ended September 30,
|
Nine months ended September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||
Net cash provided by (used in) operating activities
|
$
|
66,579
|
$
|
20,030
|
$
|
156,896
|
$
|
(6,943
|
)
|
|||||||
Purchase of property and equipment
|
(779
|
)
|
(5,339
|
)
|
(5,463
|
)
|
(12,243
|
)
|
||||||||
Capitalized software development costs
|
(910
|
)
|
(732
|
)
|
(1,929
|
)
|
(2,342
|
)
|
||||||||
Free cash flow
|
$
|
64,890
|
$
|
13,959
|
$
|
149,504
|
$
|
(21,528
|
)
|
|||||||
Free cash flow margin
|
34
|
%
|
10
|
%
|
28
|
%
|
(6
|
)%
|