Procore Announces Second Quarter 2024 Financial Results
“We are in the early innings of transforming one of the largest and least digitized industries in the world,” said
“We delivered a record operating margin in Q2 as we continue to demonstrate improved operating leverage in the business,” said
Second Quarter 2024 Financial Highlights:
-
Revenue was
$284 million , an increase of 24% year-over-year. - GAAP gross margin was 83% and non-GAAP gross margin was 87%.
- GAAP operating margin was (5%) and non-GAAP operating margin was 17.6%.
-
Operating cash inflow for the second quarter was
$59 million . -
Free cash inflow for the second quarter was
$47 million .
A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”
Recent Business Highlights:
- Achieved a gross revenue retention rate of 94% in the second quarter.
-
Number of organic customers contributing more than
$100,000 of annual recurring revenue totaled 2,191 as ofJune 30, 2024 , an increase of 20% year-over-year. - Added 152 net new organic customers in the second quarter, ending with a total of 16,750 organic customers.
-
Announced a number of innovations to the
Procore platform to deepen access to AI, improve field productivity, and drive efficient cost management, including enhancements to Maps and Locations and a new integration of Procore Copilot via Microsoft Teams. - Announced the launch of the FedRAMP authorization process to strengthen cloud security for Federal customers.
-
Recognized by
U.S. News as one of the Best Companies to Work For.
Third Quarter and Full Year 2024 Outlook:
-
Third Quarter 2024 Outlook:
-
Revenue is expected to be in the range of
$286 million to$288 million , representing year-over-year growth of 15% to 16%. - Non-GAAP operating margin is expected to be in the range of 9% to 10%.
-
Revenue is expected to be in the range of
-
Full Year 2024 Outlook:
-
Revenue is expected to be in the range of
$1,141 million to$1,144 million , representing year-over-year growth of 20%. - Non-GAAP operating margin is expected to be in the range of 10% to 11%.
-
Revenue is expected to be in the range of
A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future and cannot be reasonably determined or predicted at this time, although it is important to note that these factors could be material to Procore’s future GAAP financial results.
Quarterly Conference Call
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, about
Non-GAAP Financial Measures
Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Operating Expenses, Non-GAAP Income (Loss) from Operations, Non-GAAP Operating Margin, Non-GAAP Net Income, and Non-GAAP Net Income per Share:
Stock-based compensation expense includes the net effects of capitalization and amortization of stock-based compensation expense related to capitalized software and cloud-computing arrangement implementation costs. Stock-based compensation expense has been, and will continue to be for the foreseeable future, a significant recurring expense in our business and an important part of the compensation provided to our employees. Because of varying available valuation methodologies, subjective assumptions, and the variety of equity instruments that can impact a company’s non-cash expenses, we believe that providing non-GAAP financial measures that exclude stock-based compensation expense allows for meaningful comparisons between its operating results from period to period. The expense related to amortization of acquired intangible assets is dependent upon estimates and assumptions, which can vary significantly and are unique to each asset acquired; therefore,
Non-GAAP financial measures may not provide information that is directly comparable to information provided by other companies in
Free Cash Flow:
Other Metrics
Customer Count: The aforementioned customer count excludes customers acquired from business combinations that do not have standard
About
PROCORE-IR
Category: Earnings
Condensed Consolidated Statements of Operations (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
(in thousands, except share and per share amounts) |
||||||||||||||
Revenue |
$ |
284,347 |
|
|
$ |
228,536 |
|
|
$ |
553,775 |
|
|
$ |
442,062 |
|
Cost of revenue(1)(2)(3) |
|
48,101 |
|
|
|
42,304 |
|
|
|
93,824 |
|
|
|
82,506 |
|
Gross profit |
|
236,246 |
|
|
|
186,232 |
|
|
|
459,951 |
|
|
|
359,556 |
|
Operating expenses |
|
|
|
|
|
|
|
||||||||
Sales and marketing(1)(2)(3)(4) |
|
127,922 |
|
|
|
125,362 |
|
|
|
248,916 |
|
|
|
242,725 |
|
Research and development(1)(2)(3)(4) |
|
72,308 |
|
|
|
73,216 |
|
|
|
142,907 |
|
|
|
153,252 |
|
General and administrative(1)(3)(4) |
|
50,792 |
|
|
|
46,383 |
|
|
|
101,810 |
|
|
|
91,571 |
|
Total operating expenses |
|
251,022 |
|
|
|
244,961 |
|
|
|
493,633 |
|
|
|
487,548 |
|
Loss from operations |
|
(14,776 |
) |
|
|
(58,729 |
) |
|
|
(33,682 |
) |
|
|
(127,992 |
) |
Interest income |
|
5,814 |
|
|
|
4,943 |
|
|
|
11,752 |
|
|
|
9,891 |
|
Interest expense |
|
(472 |
) |
|
|
(491 |
) |
|
|
(951 |
) |
|
|
(987 |
) |
Accretion income, net |
|
3,761 |
|
|
|
2,031 |
|
|
|
6,849 |
|
|
|
3,663 |
|
Other expense, net |
|
(148 |
) |
|
|
(313 |
) |
|
|
(492 |
) |
|
|
(523 |
) |
Loss before provision for income taxes |
|
(5,821 |
) |
|
|
(52,559 |
) |
|
|
(16,524 |
) |
|
|
(115,948 |
) |
Provision for income taxes |
|
490 |
|
|
|
322 |
|
|
|
753 |
|
|
|
380 |
|
Net loss |
$ |
(6,311 |
) |
|
$ |
(52,881 |
) |
|
$ |
(17,277 |
) |
|
$ |
(116,328 |
) |
Net loss per share attributable to common stockholders, basic and diluted |
$ |
(0.04 |
) |
|
$ |
(0.37 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.83 |
) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted |
|
146,938,942 |
|
|
|
141,238,489 |
|
|
|
146,207,469 |
|
|
|
140,446,873 |
(1) |
Includes stock-based compensation expense and amortization of capitalized stock-based compensation as follows: |
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
(in thousands) |
||||||||||||||
Cost of revenue |
$ |
3,683 |
|
$ |
2,880 |
|
$ |
6,868 |
|
$ |
5,376 |
||||
Sales and marketing |
|
15,671 |
|
|
|
14,470 |
|
|
|
28,691 |
|
|
|
27,574 |
|
Research and development |
|
17,628 |
|
|
|
16,270 |
|
|
|
31,363 |
|
|
|
36,051 |
|
General and administrative |
|
13,961 |
|
|
|
9,909 |
|
|
|
25,690 |
|
|
|
20,384 |
|
Total stock-based compensation expense* |
$ |
50,943 |
|
|
$ |
43,529 |
|
|
$ |
92,612 |
|
|
$ |
89,385 |
|
*Includes amortization of capitalized stock-based compensation of |
(2) |
Includes amortization of acquired intangible assets as follows: |
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
(in thousands) |
||||||||||||||
Cost of revenue |
$ |
6,156 |
|
$ |
5,493 |
|
$ |
12,041 |
|
$ |
10,986 |
||||
Sales and marketing |
|
3,145 |
|
|
|
3,106 |
|
|
|
6,251 |
|
|
|
6,213 |
|
Research and development |
|
665 |
|
|
|
675 |
|
|
|
1,340 |
|
|
|
1,409 |
|
Total amortization of acquired intangible assets |
$ |
9,966 |
|
|
$ |
9,274 |
|
|
$ |
19,632 |
|
|
$ |
18,608 |
|
(3) |
Includes employer payroll tax on employee stock transactions as follows: |
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
(in thousands) |
||||||||||||||
Cost of revenue |
$ |
161 |
|
$ |
139 |
|
$ |
373 |
|
$ |
306 |
||||
Sales and marketing |
|
788 |
|
|
|
618 |
|
|
|
2,052 |
|
|
|
1,617 |
|
Research and development |
|
900 |
|
|
|
891 |
|
|
|
2,568 |
|
|
|
2,247 |
|
General and administrative |
|
494 |
|
|
|
503 |
|
|
|
1,539 |
|
|
|
1,135 |
|
Total employer payroll tax on employee stock transactions |
$ |
2,343 |
|
|
$ |
2,151 |
|
|
$ |
6,532 |
|
|
$ |
5,305 |
|
(4) |
Includes acquisition-related expenses as follows: |
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
(in thousands) |
||||||||||||||
Sales and marketing |
$ |
1,000 |
|
$ |
548 |
|
$ |
1,448 |
|
$ |
1,454 |
||||
Research and development |
|
— |
|
|
|
204 |
|
|
|
— |
|
|
|
6,188 |
|
General and administrative |
|
563 |
|
|
|
— |
|
|
|
563 |
|
|
|
— |
|
Total acquisition-related expenses |
$ |
1,563 |
|
|
$ |
752 |
|
|
$ |
2,011 |
|
|
$ |
7,642 |
|
Condensed Consolidated Balance Sheets (unaudited) |
|||||||
|
2 024 |
|
2 023 |
||||
|
(in thousands) |
||||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
356,239 |
|
|
$ |
357,790 |
|
Marketable securities, current |
|
379,120 |
|
|
|
320,161 |
|
Accounts receivable, net |
|
158,700 |
|
|
|
206,644 |
|
Contract cost asset, current |
|
30,946 |
|
|
|
28,718 |
|
Prepaid expenses and other current assets |
|
41,471 |
|
|
|
42,421 |
|
Total current assets |
|
966,476 |
|
|
|
955,734 |
|
Marketable securities, non-current |
|
45,430 |
|
|
|
— |
|
Capitalized software development costs, net |
|
95,763 |
|
|
|
83,045 |
|
Property and equipment, net |
|
34,895 |
|
|
|
36,258 |
|
Right of use assets - finance leases |
|
33,051 |
|
|
|
34,375 |
|
Right of use assets - operating leases |
|
35,255 |
|
|
|
44,141 |
|
Contract cost asset, non-current |
|
44,193 |
|
|
|
44,564 |
|
Intangible assets, net |
|
142,293 |
|
|
|
137,546 |
|
|
|
550,363 |
|
|
|
539,354 |
|
Other assets |
|
19,316 |
|
|
|
18,551 |
|
Total assets |
$ |
1,967,035 |
|
|
$ |
1,893,568 |
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
26,951 |
|
|
$ |
13,177 |
|
Accrued expenses |
|
71,253 |
|
|
|
100,075 |
|
Deferred revenue, current |
|
494,680 |
|
|
|
501,903 |
|
Other current liabilities |
|
31,894 |
|
|
|
27,275 |
|
Total current liabilities |
|
624,778 |
|
|
|
642,430 |
|
Deferred revenue, non-current |
|
6,135 |
|
|
|
7,692 |
|
Finance lease liabilities, non-current |
|
42,468 |
|
|
|
43,581 |
|
Operating lease liabilities, non-current |
|
32,578 |
|
|
|
37,923 |
|
Other liabilities, non-current |
|
5,278 |
|
|
|
6,332 |
|
Total liabilities |
|
711,237 |
|
|
|
737,958 |
|
Stockholders’ equity |
|
|
|
||||
Common stock |
|
15 |
|
|
|
15 |
|
Additional paid-in capital |
|
2,414,224 |
|
|
|
2,295,807 |
|
Accumulated other comprehensive loss |
|
(2,327 |
) |
|
|
(1,375 |
) |
Accumulated deficit |
|
(1,156,114 |
) |
|
|
(1,138,837 |
) |
Total stockholders’ equity |
|
1,255,798 |
|
|
|
1,155,610 |
|
Total liabilities and stockholders’ equity |
$ |
1,967,035 |
|
|
$ |
1,893,568 |
|
Remaining performance obligation: |
||||||||||||||
The following table presents our current and non-current RPO at the end of each period: |
||||||||||||||
|
|
|
Change |
|||||||||||
|
2024 |
|
2023 |
|
Dollar |
|
Percent |
|||||||
|
(dollars in thousands) |
|||||||||||||
Remaining performance obligations |
|
|
|
|
|
|
|
|||||||
Current |
$ |
724,832 |
|
$ |
622,639 |
|
$ |
102,193 |
|
16 |
% |
|||
Non-current |
|
310,381 |
|
|
|
226,877 |
|
|
|
83,504 |
|
|
37 |
% |
Total remaining performance obligations |
$ |
1,035,213 |
|
|
$ |
849,516 |
|
|
$ |
185,697 |
|
|
22 |
% |
Condensed Consolidated Statements of Cash Flows (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
(in thousands) |
||||||||||||||
Operating activities |
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(6,311 |
) |
|
$ |
(52,881 |
) |
|
$ |
(17,277 |
) |
|
$ |
(116,328 |
) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities |
|
|
|
|
|
|
|
||||||||
Stock-based compensation |
|
49,225 |
|
|
|
42,487 |
|
|
|
89,357 |
|
|
|
87,425 |
|
Depreciation and amortization |
|
20,843 |
|
|
|
17,336 |
|
|
|
40,894 |
|
|
|
34,210 |
|
Accretion of discounts on marketable debt securities, net |
|
(3,661 |
) |
|
|
(2,030 |
) |
|
|
(6,749 |
) |
|
|
(3,662 |
) |
Abandonment of long-lived assets |
|
312 |
|
|
|
94 |
|
|
|
580 |
|
|
|
535 |
|
Noncash operating lease expense |
|
2,259 |
|
|
|
2,604 |
|
|
|
4,993 |
|
|
|
5,232 |
|
Unrealized foreign currency loss, net |
|
(365 |
) |
|
|
149 |
|
|
|
714 |
|
|
|
557 |
|
Deferred income taxes |
|
1 |
|
|
|
3 |
|
|
|
2 |
|
|
|
5 |
|
Provision for credit losses |
|
216 |
|
|
|
2,004 |
|
|
|
405 |
|
|
|
3,730 |
|
Increase (decrease) in fair value of strategic investments |
|
118 |
|
|
|
42 |
|
|
|
(641 |
) |
|
|
6 |
|
Changes in operating assets and liabilities, net of effect of asset acquisitions and business combinations |
|
|
|
|
|
|
|
||||||||
Accounts receivable |
|
(19,019 |
) |
|
|
(19,371 |
) |
|
|
48,994 |
|
|
|
23,577 |
|
Deferred contract cost assets |
|
(1,662 |
) |
|
|
(3,170 |
) |
|
|
(2,089 |
) |
|
|
(3,630 |
) |
Prepaid expenses and other assets |
|
494 |
|
|
|
(2,848 |
) |
|
|
(190 |
) |
|
|
1,701 |
|
Accounts payable |
|
10,124 |
|
|
|
(3,499 |
) |
|
|
13,279 |
|
|
|
1,149 |
|
Accrued expenses and other liabilities |
|
3,707 |
|
|
|
(2,929 |
) |
|
|
(30,447 |
) |
|
|
(31,110 |
) |
Deferred revenue |
|
3,231 |
|
|
|
13,093 |
|
|
|
(10,877 |
) |
|
|
19,582 |
|
Operating lease liabilities |
|
(817 |
) |
|
|
(2,761 |
) |
|
|
(3,108 |
) |
|
|
(5,381 |
) |
Net cash provided by (used in) operating activities |
|
58,695 |
|
|
|
(11,677 |
) |
|
|
127,840 |
|
|
|
17,598 |
|
Investing activities |
|
|
|
|
|
|
|
||||||||
Purchases of property and equipment |
|
(1,874 |
) |
|
|
(2,521 |
) |
|
|
(3,963 |
) |
|
|
(4,694 |
) |
Capitalized software development costs |
|
(10,218 |
) |
|
|
(9,400 |
) |
|
|
(19,732 |
) |
|
|
(17,351 |
) |
Purchases of strategic investments |
|
(862 |
) |
|
|
(293 |
) |
|
|
(1,072 |
) |
|
|
(442 |
) |
Purchases of marketable securities |
|
(222,940 |
) |
|
|
(139,286 |
) |
|
|
(324,374 |
) |
|
|
(229,282 |
) |
Maturities of marketable securities |
|
118,798 |
|
|
|
118,817 |
|
|
|
226,099 |
|
|
|
222,726 |
|
Sales of marketable securities |
|
— |
|
|
|
5,452 |
|
|
|
— |
|
|
|
5,452 |
|
Originations of materials financing |
|
— |
|
|
|
(7,930 |
) |
|
|
— |
|
|
|
(17,007 |
) |
Customer repayments of materials financing |
|
202 |
|
|
|
7,638 |
|
|
|
1,483 |
|
|
|
12,996 |
|
Acquisition of a business, net of cash acquired |
|
(25,945 |
) |
|
|
— |
|
|
|
(25,945 |
) |
|
|
— |
|
Asset acquisitions, net of cash acquired |
|
(3,787 |
) |
|
|
— |
|
|
|
(3,792 |
) |
|
|
— |
|
Net cash used in investing activities |
|
(146,626 |
) |
|
|
(27,523 |
) |
|
|
(151,296 |
) |
|
|
(27,602 |
) |
Financing activities |
|
|
|
|
|
|
|
||||||||
Proceeds from stock option exercises |
|
2,790 |
|
|
|
7,217 |
|
|
|
9,915 |
|
|
|
10,939 |
|
Proceeds from employee stock purchase plan |
|
13,187 |
|
|
|
13,006 |
|
|
|
13,187 |
|
|
|
13,006 |
|
Principal payments under finance lease agreements, net of proceeds from lease incentives |
|
(220 |
) |
|
|
(520 |
) |
|
|
(669 |
) |
|
|
(930 |
) |
Net cash provided by financing activities |
|
15,757 |
|
|
|
19,703 |
|
|
|
22,433 |
|
|
|
23,015 |
|
Net increase in cash and cash equivalents |
|
(72,174 |
) |
|
|
(19,497 |
) |
|
|
(1,023 |
) |
|
|
13,011 |
|
Effect of exchange rate changes on cash |
|
757 |
|
|
|
(53 |
) |
|
|
(528 |
) |
|
|
(309 |
) |
Cash and cash equivalents, beginning of period |
|
427,656 |
|
|
|
332,068 |
|
|
|
357,790 |
|
|
|
299,816 |
|
Cash and cash equivalents, end of period |
$ |
356,239 |
|
|
$ |
312,518 |
|
|
$ |
356,239 |
|
|
$ |
312,518 |
|
Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) |
|||||||||||||||
Reconciliation of gross profit and gross margin to non-GAAP gross profit and non-GAAP gross margin: |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
(dollars in thousands) |
||||||||||||||
Revenue |
$ |
284,347 |
|
|
$ |
228,536 |
|
|
$ |
553,775 |
|
|
$ |
442,062 |
|
Gross profit |
|
236,246 |
|
|
|
186,232 |
|
|
|
459,951 |
|
|
|
359,556 |
|
Stock-based compensation expense |
|
3,683 |
|
|
|
2,880 |
|
|
|
6,868 |
|
|
|
5,376 |
|
Amortization of acquired technology intangible assets |
|
6,156 |
|
|
|
5,493 |
|
|
|
12,041 |
|
|
|
10,986 |
|
Employer payroll tax on employee stock transactions |
|
161 |
|
|
|
139 |
|
|
|
373 |
|
|
|
306 |
|
Non-GAAP gross profit |
$ |
246,246 |
|
|
$ |
194,744 |
|
|
$ |
479,233 |
|
|
$ |
376,224 |
|
Gross margin |
|
83 |
% |
|
|
81 |
% |
|
|
83 |
% |
|
|
81 |
% |
Non-GAAP gross margin |
|
87 |
% |
|
|
85 |
% |
|
|
87 |
% |
|
|
85 |
% |
Reconciliation of operating expenses to non-GAAP operating expenses: |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
(dollars in thousands) |
||||||||||||||
Revenue |
$ |
284,347 |
|
|
$ |
228,536 |
|
|
$ |
553,775 |
|
|
$ |
442,062 |
|
GAAP sales and marketing |
|
127,922 |
|
|
|
125,362 |
|
|
|
248,916 |
|
|
|
242,725 |
|
Stock-based compensation expense |
|
(15,671 |
) |
|
|
(14,470 |
) |
|
|
(28,691 |
) |
|
|
(27,574 |
) |
Amortization of acquired intangible assets |
|
(3,145 |
) |
|
|
(3,106 |
) |
|
|
(6,251 |
) |
|
|
(6,213 |
) |
Employer payroll tax on employee stock transactions |
|
(788 |
) |
|
|
(618 |
) |
|
|
(2,052 |
) |
|
|
(1,617 |
) |
Acquisition-related expenses |
|
(1,000 |
) |
|
|
(548 |
) |
|
|
(1,448 |
) |
|
|
(1,454 |
) |
Non-GAAP sales and marketing |
$ |
107,318 |
|
|
$ |
106,620 |
|
|
$ |
210,474 |
|
|
$ |
205,867 |
|
GAAP sales and marketing as a percentage of revenue |
|
45 |
% |
|
|
55 |
% |
|
|
45 |
% |
|
|
55 |
% |
Non-GAAP sales and marketing as a percentage of revenue |
|
38 |
% |
|
|
47 |
% |
|
|
38 |
% |
|
|
47 |
% |
|
|
|
|
|
|
|
|
||||||||
GAAP research and development |
$ |
72,308 |
|
|
$ |
73,216 |
|
|
$ |
142,907 |
|
|
$ |
153,252 |
|
Stock-based compensation expense |
|
(17,628 |
) |
|
|
(16,270 |
) |
|
|
(31,363 |
) |
|
|
(36,051 |
) |
Amortization of acquired intangible assets |
|
(665 |
) |
|
|
(675 |
) |
|
|
(1,340 |
) |
|
|
(1,409 |
) |
Employer payroll tax on employee stock transactions |
|
(900 |
) |
|
|
(891 |
) |
|
|
(2,568 |
) |
|
|
(2,247 |
) |
Acquisition-related expenses |
|
— |
|
|
|
(204 |
) |
|
|
— |
|
|
|
(6,188 |
) |
Non-GAAP research and development |
$ |
53,115 |
|
|
$ |
55,176 |
|
|
$ |
107,636 |
|
|
$ |
107,357 |
|
GAAP research and development as a percentage of revenue |
|
25 |
% |
|
|
32 |
% |
|
|
26 |
% |
|
|
35 |
% |
Non-GAAP research and development as a percentage of revenue |
|
19 |
% |
|
|
24 |
% |
|
|
19 |
% |
|
|
24 |
% |
|
|
|
|
|
|
|
|
||||||||
GAAP general and administrative |
$ |
50,792 |
|
|
$ |
46,383 |
|
|
$ |
101,810 |
|
|
$ |
91,571 |
|
Stock-based compensation expense |
|
(13,961 |
) |
|
|
(9,909 |
) |
|
|
(25,690 |
) |
|
|
(20,384 |
) |
Employer payroll tax on employee stock transactions |
|
(494 |
) |
|
|
(503 |
) |
|
|
(1,539 |
) |
|
|
(1,135 |
) |
Acquisition-related expenses |
|
(563 |
) |
|
|
— |
|
|
|
(563 |
) |
|
|
— |
|
Non-GAAP general and administrative |
$ |
35,774 |
|
|
$ |
35,971 |
|
|
$ |
74,018 |
|
|
$ |
70,052 |
|
GAAP general and administrative as a percentage of revenue |
|
18 |
% |
|
|
20 |
% |
|
|
18 |
% |
|
|
21 |
% |
Non-GAAP general and administrative as a percentage of revenue |
|
13 |
% |
|
|
16 |
% |
|
|
13 |
% |
|
|
16 |
% |
Reconciliation of loss from operations and operating margin to non-GAAP income (loss) from operations and non-GAAP operating margin: |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
(dollars in thousands) |
||||||||||||||
Revenue |
$ |
284,347 |
|
|
$ |
228,536 |
|
|
$ |
553,775 |
|
|
$ |
442,062 |
|
Loss from operations |
|
(14,776 |
) |
|
|
(58,729 |
) |
|
|
(33,682 |
) |
|
|
(127,992 |
) |
Stock-based compensation expense |
|
50,943 |
|
|
|
43,529 |
|
|
|
92,612 |
|
|
|
89,385 |
|
Amortization of acquired intangible assets |
|
9,966 |
|
|
|
9,274 |
|
|
|
19,632 |
|
|
|
18,608 |
|
Employer payroll tax on employee stock transactions |
|
2,343 |
|
|
|
2,151 |
|
|
|
6,532 |
|
|
|
5,305 |
|
Acquisition-related expenses |
|
1,563 |
|
|
|
752 |
|
|
|
2,011 |
|
|
|
7,642 |
|
Non-GAAP income (loss) from operations |
$ |
50,039 |
|
|
$ |
(3,023 |
) |
|
$ |
87,105 |
|
|
$ |
(7,052 |
) |
Operating margin |
|
(5 |
%) |
|
|
(26 |
%) |
|
|
(6 |
%) |
|
|
(29 |
%) |
Non-GAAP operating margin |
|
18 |
% |
|
|
(1 |
%) |
|
|
16 |
% |
|
|
(2 |
%) |
Reconciliation of net loss and net loss per share to non-GAAP net income and non-GAAP net income per share: |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
(in thousands, except share and per share amounts) |
||||||||||||||
Revenue |
$ |
284,347 |
|
|
$ |
228,536 |
|
|
$ |
553,775 |
|
|
$ |
442,062 |
|
Net loss |
|
(6,311 |
) |
|
|
(52,881 |
) |
|
|
(17,277 |
) |
|
|
(116,328 |
) |
Stock-based compensation expense |
|
50,943 |
|
|
|
43,529 |
|
|
|
92,612 |
|
|
|
89,385 |
|
Amortization of acquired intangible assets |
|
9,966 |
|
|
|
9,274 |
|
|
|
19,632 |
|
|
|
18,608 |
|
Employer payroll tax on employee stock transactions |
|
2,343 |
|
|
|
2,151 |
|
|
|
6,532 |
|
|
|
5,305 |
|
Acquisition-related expenses |
|
1,563 |
|
|
|
752 |
|
|
|
2,011 |
|
|
|
7,642 |
|
Non-GAAP net income |
$ |
58,504 |
|
|
$ |
2,825 |
|
|
$ |
103,510 |
|
|
$ |
4,612 |
|
|
|
|
|
|
|
|
|
||||||||
Numerator: |
|
|
|
|
|
|
|
||||||||
Non-GAAP net income |
$ |
58,504 |
|
|
$ |
2,825 |
|
|
$ |
103,510 |
|
|
$ |
4,612 |
|
|
|
|
|
|
|
|
|
||||||||
Denominator: |
|
|
|
|
|
|
|
||||||||
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic |
|
146,938,942 |
|
|
|
141,238,489 |
|
|
|
146,207,469 |
|
|
|
140,446,873 |
|
Effect of dilutive securities: Employee stock awards |
|
4,653,396 |
|
|
|
6,117,368 |
|
|
|
5,349,382 |
|
|
|
6,537,556 |
|
Weighted-average shares used in computing net income per share attributable to common stockholders, diluted |
|
151,592,338 |
|
|
|
147,355,857 |
|
|
|
151,556,851 |
|
|
|
146,984,429 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP net loss per share, basic |
$ |
(0.04 |
) |
|
$ |
(0.37 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.83 |
) |
GAAP net loss per share, diluted |
$ |
(0.04 |
) |
|
$ |
(0.37 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.83 |
) |
Non-GAAP net income per share, basic |
$ |
0.40 |
|
|
$ |
0.02 |
|
|
$ |
0.71 |
|
|
$ |
0.03 |
|
Non-GAAP net income per share, diluted |
$ |
0.39 |
|
|
$ |
0.02 |
|
|
$ |
0.68 |
|
|
$ |
0.03 |
|
Computation of free cash flow: |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
(in thousands) |
||||||||||||||
Net cash provided by (used in) operating activities |
$ |
58,695 |
|
|
$ |
(11,677 |
) |
|
$ |
127,840 |
|
|
$ |
17,598 |
|
Purchases of property, plant, and equipment |
|
(1,874 |
) |
|
|
(2,521 |
) |
|
|
(3,963 |
) |
|
|
(4,694 |
) |
Capitalized software development costs |
|
(10,218 |
) |
|
|
(9,400 |
) |
|
|
(19,732 |
) |
|
|
(17,351 |
) |
Non-GAAP free cash flow |
$ |
46,603 |
|
|
$ |
(23,598 |
) |
|
$ |
104,145 |
|
|
$ |
(4,447 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240801037273/en/
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