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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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99.1 |
●
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Revenue was $202.6 million, an increase of 35% year-over-year.
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●
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GAAP operating loss was $1.1 million compared to a loss of $10.1 million in the fourth quarter of 2022; GAAP operating margin was negative 1% compared to negative 7% in the fourth quarter of
2022.
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●
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Non-GAAP operating income was $21.2 million compared to $14.3 million in the fourth quarter of 2022; non-GAAP operating margin was 10%, in-line with the fourth quarter of 2022.
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●
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GAAP basic and diluted net income per share was $0.25 and $0.24, respectively, compared to GAAP basic and diluted net loss per share of $0.03 in the fourth quarter of 2022; non-GAAP basic and
diluted net income per share was $0.69 and $0.65, respectively, compared to non-GAAP basic and diluted net income per share of $0.47 and $0.44, respectively, in the fourth quarter of 2022.
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●
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Net cash provided by operating activities was $58.5 million, with $55.4 million of free cash flow, compared to net cash provided by operating activities of $34.1 million and $29.7 million of
free cash flow in the fourth quarter of 2022.
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●
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Revenue was $729.7 million, an increase of 41% year-over-year.
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●
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GAAP operating loss was $38.6 million compared to a loss of $152.0 million in fiscal 2022; GAAP operating margin was negative 5% compared to negative 29% in fiscal 2022.
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●
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Non-GAAP operating income was $61.6 million compared to a loss of $47.1 million in fiscal 2022; non-GAAP operating margin was 8% compared to negative 9% in fiscal 2022.
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●
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GAAP basic and diluted net loss per share was $0.04 compared to GAAP basic and diluted net loss per share of $2.99 in fiscal 2022; non-GAAP basic and diluted net income per share was $1.96
and $1.85, respectively, compared to non-GAAP basic and diluted net loss per share of $0.73 in fiscal 2022.
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●
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Net cash provided by operating activities was $215.4 million, with $204.9 million of free cash flow, compared to net cash provided by operating activities of $27.1 million and $8.1 million of
free cash flow in fiscal 2022.
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●
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Net dollar retention rate was 110%.
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●
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Net dollar retention rate for customers with more than 10 users was 115%.
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●
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Net dollar retention rate for customers with more than $50,000 in annual recurring revenue (“ARR”) was 115%.
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●
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Net dollar retention rate for customers with more than $100,000 in ARR was 114%.
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●
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The number of paid customers with more than $50,000 in ARR was 2,295, up 56% from 1,474 as of December 31, 2022.
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●
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The number of paid customers with more than $100,000 in ARR was 833, up 58% from 527 as of December 31, 2022.
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●
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Announced the launch of monday code, a serverless environment within the Work OS platform where developers can build and run enterprise-ready apps that meet our customers’ unique
requirements, with monday.com’s security and compliance standards built in.
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●
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Total revenue of $207 million to $211 million, representing year-over-year growth of 28% to 30%.
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●
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Non-GAAP operating income of $8 million to $12 million and operating margin of 4% to 6%.
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●
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Free cash flow of $56 million to $60 million and free cash flow margin of 27% to 29%.
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●
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Total revenue of $926 million to $932 million, representing year-over-year growth of 27% to 28%.
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●
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Non-GAAP operating income of $58 million to $64 million and operating margin of 6% to 7%.
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●
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Free cash flow of $200 million to $206 million and free cash flow margin of approximately 22%.
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Three months ended December 31,
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Year ended December 31,
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|||||||||||||||
2023
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2022
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2023
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2022
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|||||||||||||
(unaudited)
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(unaudited)
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(audited)
|
||||||||||||||
Revenue
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$
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202,570
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$
|
149,921
|
$
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729,695
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$
|
519,029
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||||||||
Cost of revenue
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22,408
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17,359
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80,645
|
66,528
|
||||||||||||
Gross profit
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180,162
|
132,562
|
649,050
|
452,501
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Research and development
|
41,898
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32,560
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156,500
|
127,047
|
||||||||||||
Sales and marketing
|
114,919
|
88,385
|
438,402
|
392,068
|
||||||||||||
General and administrative
|
24,490
|
21,717
|
92,733
|
85,401
|
||||||||||||
Total operating expenses
|
181,307
|
142,662
|
687,635
|
604,516
|
||||||||||||
Operating loss
|
(1,145
|
)
|
(10,100
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)
|
(38,585
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)
|
(152,015
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)
|
||||||||
Financial income, net
|
12,861
|
11,137
|
41,911
|
22,554
|
||||||||||||
Income (loss) before income taxes
|
11,716
|
1,037
|
3,326
|
(129,461
|
)
|
|||||||||||
Income tax (expense) benefit
|
621
|
(2,525
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)
|
(5,203
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)
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(7,406
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)
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|||||||||
Net income (loss)
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$
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12,337
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$
|
(1,488
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)
|
$
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(1,877
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)
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$
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(136,867
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)
|
|||||
Net income (loss) per share, basic
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$
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0.25
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$
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(0.03
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)
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$
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(0.04
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)
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$
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(2.99
|
)
|
|||||
Net income (loss) per share, diluted
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$
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0.24
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$
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(0.03
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)
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$
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(0.04
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)
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$
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(2.99
|
)
|
|||||
Weighted-average ordinary shares used in calculating net income (loss) per ordinary share, basic
|
48,796,294
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47,659,154
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48,366,378
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45,804,714
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||||||||||||
Weighted-average ordinary shares used in calculating net income (loss) per ordinary share, diluted
|
51,607,542
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47,659,154
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48,366,378
|
45,804,714
|
December 31,
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December 31,
|
|||||||
2023
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2022
|
|||||||
ASSETS
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(unaudited)
|
(audited)
|
||||||
CURRENT ASSETS:
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||||||||
Cash and cash equivalents
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$
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1,116,128
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$
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885,894
|
||||
Accounts receivable, net
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17,911
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13,226
|
||||||
Prepaid expenses and other current assets
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39,103
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24,725
|
||||||
Total current assets
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1,173,142
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923,845
|
||||||
LONG-TERM ASSETS:
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||||||||
Property and equipment, net
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37,418
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34,416
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||||||
Operating lease right-of-use assets
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62,280
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80,197
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||||||
Other long-term assets
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2,816
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585
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||||||
Total long-term assets
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102,514
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115,198
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||||||
Total assets
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$
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1,275,656
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$
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1,039,043
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||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
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||||||||
Accounts payable
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$
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24,837
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$
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7,335
|
||||
Accrued expenses and other current liabilities
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106,691
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73,706
|
||||||
Deferred revenue, current
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266,284
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198,099
|
||||||
Operating lease liabilities, current
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18,201
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19,083
|
||||||
Total current liabilities
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416,013
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298,223
|
||||||
LONG-TERM LIABILITIES
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||||||||
Operating lease liabilities, non-current
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42,946
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58,638
|
||||||
Deferred revenue, non-current
|
3,189
|
2,442
|
||||||
Total long-term liabilities
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46,135
|
61,080
|
||||||
Total liabilities
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462,148
|
359,303
|
||||||
SHAREHOLDERS' EQUITY:
|
||||||||
Other comprehensive income (loss)
|
9,804
|
(3,210
|
)
|
|||||
Share capital and additional paid-in capital
|
1,388,108
|
1,265,477
|
||||||
Accumulated deficit
|
(584,404
|
)
|
(582,527
|
)
|
||||
Total shareholders’ equity
|
813,508
|
679,740
|
||||||
Total liabilities and shareholders’ equity
|
$
|
1,275,656
|
$
|
1,039,043
|
Three months ended
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Year ended
|
|||||||||||||||
December 31,
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December 31,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
(unaudited)
|
(unaudited)
|
(audited)
|
||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||||||
Net income (loss)
|
$
|
12,337
|
$
|
(1,488
|
)
|
$
|
(1,877
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)
|
$
|
(136,867
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)
|
|||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
||||||||||||||||
Depreciation and amortization
|
2,556
|
3,183
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9,023
|
8,567
|
||||||||||||
Share-based compensation
|
22,345
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24,378
|
100,186
|
104,920
|
||||||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||
Accounts receivable, net
|
(4,105
|
)
|
1,240
|
(4,685
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)
|
(4,717
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)
|
|||||||||
Prepaid expenses and other assets
|
1,515
|
4,147
|
11,840
|
6,490
|
||||||||||||
Accounts payable
|
8,647
|
678
|
17,397
|
(16,072
|
)
|
|||||||||||
Accrued expenses and other liabilities, net
|
7,223
|
(7,601
|
)
|
14,588
|
326
|
|||||||||||
Deferred revenue
|
7,990
|
9,544
|
68,932
|
64,491
|
||||||||||||
Net cash provided by operating activities
|
58,508
|
34,081
|
215,404
|
27,138
|
||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||||||
Purchase of property and equipment
|
(2,438
|
)
|
(3,760
|
)
|
(7,901
|
)
|
(16,003
|
)
|
||||||||
Capitalized software development costs
|
(629
|
)
|
(656
|
)
|
(2,558
|
)
|
(2,998
|
)
|
||||||||
Net cash used in investing activities
|
(3,067
|
)
|
(4,416
|
)
|
(10,459
|
)
|
(19,001
|
)
|
||||||||
Proceeds from exercise of share options and employee share purchase plan
|
6,539
|
3,904
|
21,243
|
12,181
|
||||||||||||
Receipt (repayment) of tax advance relating to exercises of share options and RSUs, net
|
(122
|
)
|
(220
|
)
|
4,046
|
(21,152
|
)
|
|||||||||
Capital lease payments
|
-
|
(23
|
)
|
-
|
(84
|
)
|
||||||||||
Net cash provided by (used in) financing activities
|
6,417
|
3,661
|
25,289
|
(9,055
|
)
|
|||||||||||
INCREASE (DECREASE) IN CASH, AND CASH EQUIVALENTS
|
61,858
|
33,326
|
230,234
|
(918
|
)
|
|||||||||||
CASH AND CASH EQUIVALENTS - Beginning of period
|
1,054,270
|
852,568
|
885,894
|
886,812
|
||||||||||||
CASH AND CASH EQUIVALENTS - End of period
|
$
|
1,116,128
|
$
|
885,894
|
$
|
1,116,128
|
$
|
885,894
|
Three months ended
December 31,
|
Year ended
December 31,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||
Reconciliation of gross profit and gross margin
|
||||||||||||||||
GAAP gross profit
|
$
|
180,162
|
$
|
132,562
|
$
|
649,050
|
$
|
452,501
|
||||||||
Share-based compensation
|
1,602
|
2,367
|
6,307
|
10,406
|
||||||||||||
Non-GAAP gross profit
|
$
|
181,764
|
$
|
134,929
|
$
|
655,357
|
$
|
462,907
|
||||||||
GAAP gross margin
|
89
|
%
|
88
|
%
|
89
|
%
|
87
|
%
|
||||||||
Non-GAAP gross margin
|
90
|
%
|
90
|
%
|
90
|
%
|
89
|
%
|
||||||||
Reconciliation of operating expenses
|
||||||||||||||||
GAAP research and development
|
$
|
41,898
|
$
|
32,560
|
$
|
156,500
|
$
|
127,047
|
||||||||
Share-based compensation
|
(8,613
|
)
|
(7,845
|
)
|
(38,737
|
)
|
(32,957
|
)
|
||||||||
Non-GAAP research and development
|
$
|
33,285
|
$
|
24,715
|
$
|
117,763
|
$
|
94,090
|
||||||||
GAAP sales and marketing
|
$
|
114,919
|
$
|
88,385
|
$
|
438,402
|
$
|
392,068
|
||||||||
Share-based compensation
|
(4,899
|
)
|
(7,466
|
)
|
(25,395
|
)
|
(33,457
|
)
|
||||||||
Non-GAAP sales and marketing
|
$
|
110,020
|
$
|
80,919
|
$
|
413,007
|
$
|
358,611
|
||||||||
GAAP general and administrative
|
$
|
24,490
|
$
|
21,717
|
$
|
92,733
|
$
|
85,401
|
||||||||
Share-based compensation
|
(7,231
|
)
|
(6,700
|
)
|
(29,747
|
)
|
(28,100
|
)
|
||||||||
Non-GAAP general and administrative
|
$
|
17,259
|
$
|
15,017
|
$
|
62,986
|
$
|
57,301
|
||||||||
Reconciliation of operating income (loss)
|
||||||||||||||||
GAAP operating loss
|
$
|
(1,145
|
)
|
$
|
(10,100
|
)
|
$
|
(38,585
|
)
|
$
|
(152,015
|
)
|
||||
Share-based compensation
|
22,345
|
24,378
|
100,186
|
104,920
|
||||||||||||
Non-GAAP operating income (loss)
|
$
|
21,200
|
$
|
14,278
|
$
|
61,601
|
$
|
(47,095
|
)
|
|||||||
GAAP operating margin
|
(1
|
)%
|
(7
|
)%
|
(5
|
)%
|
(29
|
)%
|
||||||||
Non-GAAP operating margin
|
10
|
%
|
10
|
%
|
8
|
%
|
(9
|
)%
|
||||||||
Reconciliation of net income (loss)
|
||||||||||||||||
GAAP net income (loss)
|
$
|
12,337
|
$
|
(1,488
|
)
|
$
|
(1,877
|
)
|
$
|
(136,867
|
)
|
|||||
Share-based compensation
|
22,345
|
24,378
|
100,186
|
104,920
|
||||||||||||
Tax benefit related to share-based compensation(1)
|
(972
|
)
|
(688
|
)
|
(3,392
|
)
|
(1,431
|
)
|
||||||||
Non-GAAP net income (loss)
|
$
|
33,710
|
$
|
22,202
|
$
|
94,917
|
$
|
(33,378
|
)
|
|||||||
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
|
48,796,294
|
47,659,154
|
48,366,378
|
45,804,714
|
||||||||||||
Effect of dilutive shares (2)
|
2,811,248
|
2,718,269
|
2,869,112
|
-
|
||||||||||||
Weighted-average ordinary shares used in calculating Non-GAAP net income (loss) per ordinary share, diluted
|
51,607,542
|
50,377,423
|
51,235,490
|
45,804,714
|
||||||||||||
GAAP net income (loss) per share, basic
|
$
|
0.25
|
$
|
(0.03
|
)
|
$
|
(0.04
|
)
|
$
|
(2.99
|
)
|
|||||
GAAP net income (loss) per share, diluted
|
$
|
0.24
|
$
|
(0.03
|
)
|
$
|
(0.04
|
)
|
$
|
(2.99
|
)
|
|||||
Non-GAAP net income (loss) per share, basic
|
$
|
0.69
|
$
|
0.47
|
$
|
1.96
|
$
|
(0.73
|
)
|
|||||||
Non-GAAP net income (loss) per share, diluted
|
$
|
0.65
|
$
|
0.44
|
$
|
1.85
|
$
|
(0.73
|
)
|
|
(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 income (loss) per share because the effect would have been anti-dilutive, with the exception of the three months ended December 31, 2023.
|
Three months ended
|
Year ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||
Revenue growth as reported
|
35
|
%
|
57
|
%
|
41
|
%
|
68
|
%
|
||||||||
Impact of foreign currency
|
0
|
%
|
3
|
%
|
0
|
%
|
3
|
%
|
||||||||
Revenue growth, FX adjusted
|
35
|
%
|
60
|
%
|
41
|
%
|
71
|
%
|
Three months ended
|
Year ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||
Net cash provided by operating activities
|
$
|
58,508
|
$
|
34,081
|
$
|
215,404
|
$
|
27,138
|
||||||||
Purchase of property and equipment
|
(2,438
|
)
|
(3,760
|
)
|
(7,901
|
)
|
(16,003
|
)
|
||||||||
Capitalized software development costs
|
(629
|
)
|
(656
|
)
|
(2,558
|
)
|
(2,998
|
)
|
||||||||
Free cash flow
|
$
|
55,441
|
$
|
29,665
|
$
|
204,945
|
$
|
8,137
|
||||||||
Free cash flow margin
|
27
|
%
|
20
|
%
|
28
|
%
|
2
|
%
|