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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: General Counsel
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Exhibit
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Description
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● |
Revenue was $83.0 million, an increase of 95% year-over-year.
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● |
GAAP operating loss was $29.2 million compared to a loss of $40.6 million, in the third quarter of 2020; GAAP operating margin was negative 35%, compared to negative 95% in the third quarter of 2020.
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● |
Non-GAAP operating loss was $9.4 million compared to a loss of $30.9 million, in the third quarter of 2020; non-GAAP operating margin was negative 11% compared to negative 72%, in the third quarter of 2020.
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● |
GAAP net loss per basic and diluted share was $0.65 compared to GAAP net loss per basic and diluted share of $3.74, in the third quarter of 2020; non-GAAP net loss per basic and diluted share was $0.26 compared to non-GAAP net loss per
basic and diluted share of $0.81, in the third quarter of 2020.
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● |
Net cash provided by operating activities was $3.8 million, with positive adjusted free cash flow of $2.9 million, compared to net cash used in operating activities of negative $7.2 million and negative $7.8 million of adjusted free cash
flow, in the third quarter of 2020.
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● |
Cash and cash equivalents were $876.2 million as of September 30, 2021, including net proceeds from our IPO and concurrent private placement of $735.9 million.
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● |
Our net dollar retention rate for customers with more than 10 users was over 130%.
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● |
The number of paid enterprise customers with more than $50,000 in annual recurring revenue was 613, up 231% from 185, in the third quarter of 2020.
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● |
Announced the launch of My Work, a place for customers and organizations to centralize all open items and communications to improve operational efficiency and productivity.
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● |
Announced the launch of layouts within monday workdocs with the goal of providing our customers with even more freedom to adjust monday workdocs to their business’s needs by creating any kind of template with live data.
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● |
Introduced our dynamic workflow builder enabling our customers to easily create, without code, any kind of new automation or integration.
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● |
Notable new customer wins or expansions during the quarter included Jamf, eBay, Cegedim, and Outbrain.
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● |
Announced a new global alliance with Tata Consultancy Services, a leading global IT services, consulting and business solutions organization.
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● |
Leveraging the strength of our marketplace, we have partnered with Hootsuite and Semrush who have built apps on the monday.com marketplace to help deepen the value for customers using monday.com for marketing operations.
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● |
Continued international and geographic expansion with new teams in Tokyo and Sao Paulo.
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● |
Total revenue of $87 to $88 million, representing year-over-year growth of 74% to 75%.
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● |
Non-GAAP operating loss of $23 million to $22 million.
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● |
Total revenue of $300 million to $301 million, representing year-over-year growth of 86% to 87%.
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● |
Non-GAAP operating loss of $65 million to $64 million and negative operating margin of 22% to 21%.
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Three months ended
September 30,
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Nine months ended
September 30,
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|||||||||||||||
2021
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2020
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2021
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2020
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|||||||||||||
Revenue
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$
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83,018
|
$
|
42,592
|
$
|
212,605
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$
|
110,981
|
||||||||
Cost of revenue
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10,213
|
6,333
|
27,245
|
15,807
|
||||||||||||
Gross profit
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72,805
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36,259
|
185,360
|
95,174
|
||||||||||||
Operating expenses:
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||||||||||||||||
Research and development
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19,875
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12,620
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51,727
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32,052
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||||||||||||
Sales and marketing
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67,443
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57,871
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191,548
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134,452
|
||||||||||||
General and administrative
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14,698
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6,415
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36,612
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17,511
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||||||||||||
Total operating expenses
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102,016
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76,906
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279,887
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184,015
|
||||||||||||
Operating loss
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(29,211
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)
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(40,647
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)
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(94,527
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)
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(88,841
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)
|
||||||||
Financial expense (income), net
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220
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(239
|
)
|
985
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(729
|
)
|
||||||||||
Loss before income taxes
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(29,431
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)
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(40,408
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)
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(95,512
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)
|
(88,112
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)
|
||||||||
Income taxes (tax benefit)
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(585
|
)
|
671
|
1,177
|
1,230
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|||||||||||
Net loss
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$
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(28,846
|
)
|
$
|
(41,079
|
)
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$
|
(96,689
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)
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$
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(89,342
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)
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||||
Deemed dividend to preferred shareholders
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—
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(4,717
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)
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(8,203
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)
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(14,048
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)
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|||||||||
Net loss attributable to ordinary shareholders
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$
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(28,846
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)
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$
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(45,796
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)
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$
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(104,892
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)
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$
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(103,390
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)
|
||||
Net loss per share attributable to ordinary shareholders’, basic and diluted
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$
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(0.65
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)
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$
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(3.74
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)
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$
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(4.12
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)
|
$
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(8.65
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)
|
||||
Weighted-average ordinary shares used in calculating net loss per ordinary share, basic and diluted
|
44,267,434
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12,240,901
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25,475,893
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11,952,886
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September 30,
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December 31,
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|||||||
2021
|
2020
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|||||||
ASSETS
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||||||||
CURRENT ASSETS:
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||||||||
Cash and cash equivalents
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$
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876,220
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$
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129,814
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||||
Short term deposits
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—
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10,000
|
||||||
Accounts receivable, net
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6,958
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3,911
|
||||||
Prepaid expenses and other current assets
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15,402
|
3,898
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||||||
Total current assets
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898,580
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147,623
|
||||||
Property and equipment, net
|
18,490
|
7,178
|
||||||
Other long-term assets
|
132
|
2,619
|
||||||
Total assets
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$
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917,202
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$
|
157,420
|
||||
LIABILITIES, CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' (DEFICIT) EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Accounts payable
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$
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22,371
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$
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25,734
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||||
Accrued expenses and other current liabilities
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64,456
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22,967
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||||||
Deferred revenue
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117,174
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70,719
|
||||||
Revolving credit facility
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—
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21,016
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||||||
Total current liabilities
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204,001
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140,436
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||||||
OTHER LONG-TERM LIABILITIES
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1,385
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1,045
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||||||
Total liabilities
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205,386
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141,481
|
||||||
CONVERTIBLE PREFERRED SHARES
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—
|
233,496
|
||||||
SHAREHOLDERS' (DEFICIT) EQUITY:
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||||||||
Other comprehensive income
|
45
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—
|
||||||
Share capital and additional paid-in capital
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1,124,826
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98,809
|
||||||
Accumulated deficit
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(413,055
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)
|
(316,366
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)
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||||
Total shareholders’ equity (deficit)
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711,816
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(217,557
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)
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|||||
Total liabilities, convertible preferred shares, and shareholders’ equity (deficit)
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$
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917,202
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$
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157,420
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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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|||||||||||||||
2021
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2020
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2021
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2020
|
|||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||||||
Net loss
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$
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(28,846
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)
|
$
|
(41,079
|
)
|
$
|
(96,689
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)
|
$
|
(89,342
|
)
|
||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
|
||||||||||||||||
Depreciation and amortization
|
709
|
510
|
1,783
|
1,297
|
||||||||||||
Capital loss from sale of property and equipment
|
19
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—
|
66
|
—
|
||||||||||||
Share-based compensation
|
19,762
|
9,796
|
51,860
|
26,323
|
||||||||||||
Change in accrued interest on revolving credit facility
|
(35
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)
|
3
|
(16
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)
|
(15
|
)
|
|||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||
Accounts receivable, net
|
(2,594
|
)
|
2,686
|
(3,047
|
)
|
380
|
||||||||||
Prepaid expenses and other assets
|
(8,974
|
)
|
(787
|
)
|
(11,032
|
)
|
(2,912
|
)
|
||||||||
Accounts payable
|
(4,090
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)
|
8,889
|
(5,093
|
)
|
11,178
|
||||||||||
Accrued expenses and other liabilities
|
12,591
|
5,013
|
18,552
|
8,582
|
||||||||||||
Deferred revenue
|
15,251
|
7,729
|
46,455
|
18,286
|
||||||||||||
Net cash provided by (used in) operating activities
|
3,793
|
(7,240
|
)
|
2,839
|
(26,223
|
)
|
||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||||||
Purchase of property and equipment
|
(3,023
|
)
|
(502
|
)
|
(8,604
|
)
|
(2,676
|
)
|
||||||||
Capitalized software development costs
|
(590
|
)
|
(176
|
)
|
(1,748
|
)
|
(535
|
)
|
||||||||
Proceeds from sale of property and equipment
|
3
|
—
|
24
|
—
|
||||||||||||
Changes in short-term deposits
|
10,051
|
(2,000
|
)
|
10,000
|
(2,000
|
)
|
||||||||||
Net cash provided by (used in) investing activities
|
6,441
|
(2,678
|
)
|
(328
|
)
|
(5,211
|
)
|
|||||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||||||
Proceeds from initial public offering and concurrent private placement, net of underwriting discounts and other issuance costs
|
(164
|
)
|
—
|
735,856
|
—
|
|||||||||||
Proceeds from exercise of share options
|
1,745
|
82
|
3,588
|
329
|
||||||||||||
Receipt (repayment) of revolving credit facility, net
|
(21,000
|
)
|
—
|
(21,000
|
)
|
3,000
|
||||||||||
Receipt of tax advance relating to exercises of share options
|
17,500
|
—
|
23,523
|
—
|
||||||||||||
Capital lease payments
|
(23
|
)
|
(18
|
)
|
(72
|
)
|
(54
|
)
|
||||||||
Net cash provided by (used in) financing activities
|
(1,942
|
)
|
64
|
741,895
|
3,275
|
|||||||||||
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
8,292
|
(9,854
|
)
|
744,406
|
(28,159
|
)
|
||||||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - Beginning of period
|
867,928
|
153,695
|
131,814
|
172,000
|
||||||||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - End of period
|
$
|
876,220
|
$
|
143,841
|
$
|
876,220
|
$
|
143,841
|
||||||||
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO THE CONSOLIDATED BALANCE SHEET:
|
||||||||||||||||
Cash and cash equivalents
|
$
|
876,220
|
$
|
141,841
|
$
|
876,220
|
$
|
141,841
|
||||||||
Restricted cash – Included in other long-term assets
|
—
|
2,000
|
—
|
2,000
|
||||||||||||
Total cash, cash equivalents, and restricted cash
|
$
|
876,220
|
$
|
143,841
|
$
|
876,220
|
$
|
143,841
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Reconciliation of gross profit and gross margin
|
||||||||||||||||
GAAP gross profit
|
$
|
72,805
|
$
|
36,259
|
$
|
185,360
|
$
|
95,174
|
||||||||
Share-based compensation
|
2,107
|
843
|
5,471
|
1,745
|
||||||||||||
Non-GAAP gross profit
|
74,912
|
37,102
|
190,831
|
96,919
|
||||||||||||
GAAP gross margin
|
88
|
%
|
85
|
%
|
87
|
%
|
86
|
%
|
||||||||
Non-GAAP gross margin
|
90
|
%
|
87
|
%
|
90
|
%
|
87
|
%
|
||||||||
Reconciliation of operating expenses
|
||||||||||||||||
GAAP research and development
|
$
|
19,875
|
$
|
12,620
|
$
|
51,727
|
$
|
32,052
|
||||||||
Share-based compensation
|
(5,620
|
)
|
(3,346
|
)
|
(15,225
|
)
|
(9,965
|
)
|
||||||||
Non-GAAP research and development
|
$
|
14,255
|
$
|
9,274
|
$
|
36,502
|
$
|
22,087
|
||||||||
GAAP sales and marketing
|
$
|
67,443
|
$
|
57,871
|
$
|
191,548
|
$
|
134,452
|
||||||||
Share-based compensation
|
(6,448
|
)
|
(3,183
|
)
|
(16,018
|
)
|
(6,940
|
)
|
||||||||
Non-GAAP sales and marketing
|
$
|
60,995
|
$
|
54,688
|
$
|
175,530
|
$
|
127,512
|
||||||||
GAAP general and administrative
|
$
|
14,698
|
$
|
6,415
|
$
|
36,612
|
$
|
17,511
|
||||||||
Share-based compensation
|
(5,587
|
)
|
(2,424
|
)
|
(15,146
|
)
|
(7,673
|
)
|
||||||||
Non-GAAP general and administrative
|
$
|
9,111
|
$
|
3,991
|
$
|
21,466
|
$
|
9,838
|
||||||||
Reconciliation of operating loss
|
||||||||||||||||
GAAP operating loss
|
$
|
(29,211
|
)
|
$
|
(40,647
|
)
|
$
|
(94,527
|
)
|
$
|
(88,841
|
)
|
||||
Share-based compensation
|
$
|
19,762
|
$
|
9,796
|
$
|
51,860
|
$
|
26,323
|
||||||||
Non-GAAP operating loss
|
$
|
(9,449
|
)
|
$
|
(30,851
|
)
|
$
|
(42,667
|
)
|
$
|
(62,518
|
)
|
||||
GAAP operating margin
|
(35
|
)%
|
(95
|
)%
|
(44
|
)%
|
(80
|
)%
|
||||||||
Non-GAAP operating margin
|
(11
|
)%
|
(72
|
)%
|
(20
|
)%
|
(56
|
)%
|
||||||||
Reconciliation of net loss
|
||||||||||||||||
GAAP net loss
|
$
|
(28,846
|
)
|
$
|
(41,079
|
)
|
$
|
(96,689
|
)
|
$
|
(89,342
|
)
|
||||
Share-based compensation
|
19,762
|
9,796
|
51,860
|
26,323
|
||||||||||||
Tax benefit related to share-based compensation(1)
|
(2,289
|
)
|
—
|
(2,289
|
)
|
—
|
||||||||||
Non-GAAP net loss
|
$
|
(11,373
|
)
|
$
|
(31,283
|
)
|
$
|
(47,118
|
)
|
$
|
(63,019
|
)
|
||||
Reconciliation of net loss attributable to ordinary shareholders
|
||||||||||||||||
GAAP net loss attributable to ordinary shareholders
|
$
|
(28,846
|
)
|
$
|
(45,796
|
)
|
$
|
(104,892
|
)
|
$
|
(103,390
|
)
|
||||
Deemed dividend to preferred shareholders
|
—
|
4,717
|
8,203
|
14,048
|
||||||||||||
Share-based compensation
|
19,762
|
9,796
|
51,860
|
26,323
|
||||||||||||
Tax benefit related to share-based compensation(1)
|
(2,289
|
)
|
—
|
(2,289
|
)
|
—
|
||||||||||
Non-GAAP net loss
|
$
|
(11,373
|
)
|
$
|
(31,283
|
)
|
$
|
(47,118
|
)
|
$
|
(63,019
|
)
|
||||
GAAP net loss per share attributable to ordinary shareholders’, basic and diluted
|
$
|
(0.65
|
)
|
$
|
(3.74
|
)
|
$
|
(4.12
|
)
|
$
|
(8.65
|
)
|
||||
Non-GAAP net loss per share, basic and diluted
|
$
|
(0.26
|
)
|
$
|
(0.81
|
)
|
$
|
(1.07
|
)
|
$
|
(1.64
|
)
|
||||
Reconciliation of basic and diluted weighted average number of shares outstanding
|
||||||||||||||||
Weighted average number of ordinary shares outstanding used in computing basic and diluted net loss per share (GAAP)
|
44,267,434
|
12,240,901
|
25,475,893
|
11,952,886
|
||||||||||||
Additional shares giving effect to IPO and concurrent private placement (2)
|
—
|
—
|
2,976,397
|
—
|
||||||||||||
Additional shares giving effect to conversion of convertible preferred shares at the beginning of the period (3)
|
—
|
26,440,239
|
15,592,962
|
26,440,239
|
||||||||||||
Weighted average number of ordinary shares outstanding used in computing basic and diluted net loss per share (Non-GAAP)
|
44,267,434
|
38,681,140
|
44,045,252
|
38,393,125
|
(1)
|
The tax benefits generated from the exercise of the disqualifying disposition of incentive share options were excluded in calculating its non-GAAP net loss and non-GAAP basic and diluted net
loss per 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) |
Assumes ordinary shares outstanding after accounting for the issuance of 5,037,742 ordinary shares associated with our initial public offering and concurrent private placement at the
beginning of the first quarter of 2021 instead of the IPO closing date, June 10, 2021.
|
(3)
|
Assumes ordinary shares outstanding after accounting for the automatic conversion of the preferred shares then outstanding into ordinary shares at the beginning of fiscal year.
|
Reconciliation of net cash provided by operating
activities to adjusted free cash flow
|
||||||||||||||||
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Net cash provided by (used in) operating activities
|
$
|
3,793
|
$
|
(7,240
|
)
|
$
|
2,839
|
$
|
(26,223
|
)
|
||||||
Purchase of property and equipment
|
(3,023
|
)
|
(502
|
)
|
(8,604
|
)
|
(2,676
|
)
|
||||||||
Capitalized software development costs
|
(590
|
)
|
(176
|
)
|
(1,748
|
)
|
(535
|
)
|
||||||||
Purchase of property and equipment related to build-out of our new corporate headquarters
|
2,685
|
84
|
7,303
|
609
|
||||||||||||
Adjusted free cash flow
|
2,865
|
(7,834
|
)
|
(210
|
)
|
(28,825
|
)
|