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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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● |
Revenue was $95.5 million, an increase of 91% year-over-year.
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● |
GAAP operating loss was $31.6 million compared to a loss of $61.7 million in the fourth quarter of 2020; GAAP operating margin was negative 33% compared to negative 123% in the fourth quarter of 2020.
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● |
Non-GAAP operating loss was $9.9 million compared to a loss of $23.7 million in the fourth quarter of 2020; non-GAAP operating margin was negative 10% compared to negative 47% in the fourth quarter of 2020.
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● |
GAAP net loss per basic and diluted share was $0.73 compared to GAAP net loss per basic and diluted share of $5.48 in the fourth 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 $0.64 in the fourth quarter of 2020.
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● |
Net cash provided by operating activities was $13.5 million, with positive adjusted free cash flow of $10.1 million compared to net cash used in operating activities of $11.0 million and negative $11.9 million of adjusted free cash flow in
the fourth quarter of 2020.
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● |
Revenue was $308.2 million, an increase of 91% year-over-year.
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● |
GAAP operating loss was $126.1 million compared to a loss of $150.5 million in fiscal 2020; GAAP operating margin was negative 41% compared to negative 93% in fiscal 2020.
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● |
Non-GAAP operating loss was $52.6 million compared to a loss of $86.2 million in fiscal 2020; non-GAAP operating margin was negative 17% compared to negative 53% in fiscal 2020.
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● |
GAAP net loss per basic and diluted share was $4.53 compared to GAAP net loss per basic and diluted share of $14.19 in fiscal 2020; non-GAAP net loss per basic and diluted share was $1.33 compared to non-GAAP net loss per basic and diluted
share of $2.28, in fiscal 2020.
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● |
Net cash provided by operating activities was $16.4 million, with positive adjusted free cash flow of $9.9 million, compared to net cash used in operating activities of $37.2 million and negative $40.7 million of adjusted free cash flow in
fiscal 2020.
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● |
Net dollar retention rate was over 120%.
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● |
Net dollar retention rate for customers with more than 10 users was over 135%.
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● |
The total number of paid customers was 152,048, up 34% from 113,888 as of December 31, 2020.
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● |
The number of paid customers with more than $50,000 in annual recurring revenue (“ARR”) was 793, up 200% from 264 as of December 31, 2020.
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● |
The percentage of ARR attributable to customers with more than 10 users was 72%, up from 63% in the fourth quarter of 2020.
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● |
Announced the launch of monday WorkForms, a stand alone product that allows users to create personalized forms or surveys in order to better manage work requests and gain organizational insights.
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Announced the launch of monday Canvas, a stand alone tool that provides users real time visual collaboration on an infinite whiteboard.
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Introduced a marketplace payment platform to enhance developers’ ability to monetize applications and to create a better overall user experience.
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Announced a new strategic alliance agreement with KPMG, leveraging the business insights of KPMG with the low-code/no-code technology of monday.com to build enterprise-grade solutions.
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● |
Total revenue of $100 to $102 million, representing year-over-year growth of 70% to 73%.
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● |
Non-GAAP operating loss of $47 million to $45 million.
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● |
Total revenue of $470 million to $475 million, representing year-over-year growth of 53% to 54%.
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● |
Non-GAAP operating loss of $147 million to $142 million and negative operating margin of 31% to 30%.
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Three months ended December 31,
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Year ended December 31,
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|||||||||||||||
2021
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2020
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2021
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2020
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|||||||||||||
Revenue
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$
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95,545
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$
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50,142
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$
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308,150
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$
|
161,123
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||||||||
Cost of revenue
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11,768
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6,681
|
39,013
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22,488
|
||||||||||||
Gross profit
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83,777
|
43,461
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269,137
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138,635
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||||||||||||
Operating expenses:
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||||||||||||||||
Research and development
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21,959
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11,428
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73,686
|
43,480
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||||||||||||
Sales and marketing
|
76,535
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56,901
|
268,083
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191,353
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||||||||||||
General and administrative
|
16,881
|
36,828
|
53,493
|
54,339
|
||||||||||||
Total operating expenses
|
115,375
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105,157
|
395,262
|
289,172
|
||||||||||||
Operating loss
|
(31,598
|
)
|
(61,696
|
)
|
(126,125
|
)
|
(150,537
|
)
|
||||||||
Financial income (expense), net
|
147
|
(203
|
)
|
(838
|
)
|
526
|
||||||||||
Loss before income taxes
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(31,451
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)
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(61,899
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)
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(126,963
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)
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(150,011
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)
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||||||||
Taxes on income
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(1,154
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)
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(962
|
)
|
(2,331
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)
|
(2,192
|
)
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||||||||
Net loss
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$
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(32,605
|
)
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$
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(62,861
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)
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$
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(129,294
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)
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$
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(152,203
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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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(18,713
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)
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|||||||||
Net loss attributable to ordinary shareholders
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$
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(32,605
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)
|
$
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(67,578
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)
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$
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(137,497
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)
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$
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(170,916
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)
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||||
Net loss per share attributable to ordinary shareholders, basic and diluted
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$
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(0.73
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)
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$
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(5.48
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)
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$
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(4.53
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)
|
$
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(14.19
|
)
|
||||
Weighted-average ordinary shares used in calculating net loss per ordinary share, basic and diluted
|
44,741,992
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12,334,890
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30,332,006
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12,048,909
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December 31,
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December 31,
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|||||||
2021
|
2020
|
|||||||
ASSETS
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||||||||
CURRENT ASSETS:
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||||||||
Cash and cash equivalents
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$
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886,812
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$
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129,814
|
||||
Short term deposits
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—
|
10,000
|
||||||
Accounts receivable, net
|
8,509
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3,911
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||||||
Prepaid expenses and other current assets
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18,172
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3,898
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||||||
Total current assets
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913,493
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147,623
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||||||
Property and equipment, net
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19,599
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7,178
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||||||
Other long-term assets
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100
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2,619
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||||||
Total assets
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$
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933,192
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$
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157,420
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||||
LIABILITIES, CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' (DEFICIT) EQUITY
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||||||||
CURRENT LIABILITIES:
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||||||||
Accounts payable
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$
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23,612
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$
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25,734
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||||
Accrued expenses and other current liabilities
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70,135
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22,967
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||||||
Deferred revenue
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134,438
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70,719
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||||||
Revolving credit facility
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—
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21,016
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||||||
Total current liabilities
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228,185
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140,436
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||||||
OTHER LONG-TERM LIABILITIES
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1,612
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1,045
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||||||
Total liabilities
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229,797
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141,481
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||||||
CONVERTIBLE PREFERRED SHARES
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—
|
233,496
|
||||||
SHAREHOLDERS' (DEFICIT) EQUITY:
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||||||||
Other comprehensive income
|
594
|
—
|
||||||
Share capital and additional paid-in capital
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1,148,461
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98,809
|
||||||
Accumulated deficit
|
(445,660
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)
|
(316,366
|
)
|
||||
Total shareholders’ equity (deficit)
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703,395
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(217,557
|
)
|
|||||
Total liabilities, convertible preferred shares, and shareholders’ equity (deficit)
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$
|
933,192
|
$
|
157,420
|
Three months ended
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Year ended
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|||||||||||||||
December 31,
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December 31,
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|||||||||||||||
2021
|
2020
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2021
|
2020
|
|||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||||||
Net loss
|
$
|
(32,605
|
)
|
$
|
(62,861
|
)
|
$
|
(129,294
|
)
|
$
|
(152,203
|
)
|
||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
|
||||||||||||||||
Depreciation and amortization
|
963
|
591
|
2,746
|
1,888
|
||||||||||||
Capital loss from sale of property and equipment
|
10
|
—
|
76
|
—
|
||||||||||||
Share-based compensation
|
21,669
|
38,022
|
73,529
|
64,345
|
||||||||||||
Change in accrued interest on revolving credit facility
|
—
|
1
|
(16
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)
|
(14
|
)
|
||||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||
Accounts receivable, net
|
(1,551
|
)
|
(852
|
)
|
(4,598
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)
|
(472
|
)
|
||||||||
Prepaid expenses and other assets
|
(2,303
|
)
|
1,084
|
(13,335
|
)
|
(1,828
|
)
|
|||||||||
Accounts payable
|
3,053
|
(4,405
|
)
|
(2,040
|
)
|
6,773
|
||||||||||
Accrued expenses and other liabilities
|
7,016
|
6,016
|
25,568
|
14,598
|
||||||||||||
Deferred revenue
|
17,264
|
11,452
|
63,719
|
29,738
|
||||||||||||
Net cash provided by (used in) operating activities
|
13,516
|
(10,952
|
)
|
16,355
|
(37,175
|
)
|
||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||||||
Purchase of property and equipment
|
(2,974
|
)
|
(1,686
|
)
|
(11,578
|
)
|
(4,362
|
)
|
||||||||
Capitalized software development costs
|
(432
|
)
|
(584
|
)
|
(2,180
|
)
|
(1,119
|
)
|
||||||||
Proceeds from sale of property and equipment
|
105
|
—
|
129
|
—
|
||||||||||||
Changes in short-term deposits
|
—
|
(4,000
|
)
|
10,000
|
(6,000
|
)
|
||||||||||
Net cash used in investing activities
|
(3,301
|
)
|
(6,270
|
)
|
(3,629
|
)
|
(11,481
|
)
|
||||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||||||
Proceeds from initial public offering and concurrent private placement, net of underwriting discounts and other issuance costs
|
—
|
—
|
735,856
|
—
|
||||||||||||
Proceeds from exercise of share options
|
1,661
|
213
|
5,249
|
542
|
||||||||||||
Receipt (repayment) of revolving credit facility, net
|
—
|
5,000
|
(21,000
|
)
|
8,000
|
|||||||||||
Receipt (repayment) of tax advance relating to exercises of share options, net
|
(1,265
|
)
|
—
|
22,258
|
—
|
|||||||||||
Capital lease payments
|
(19
|
)
|
(18
|
)
|
(91
|
)
|
(72
|
)
|
||||||||
Net cash provided by financing activities
|
377
|
5,195
|
742,272
|
8,470
|
||||||||||||
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
10,592
|
(12,027
|
)
|
754,998
|
(40,186
|
)
|
||||||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - Beginning of period
|
876,220
|
143,841
|
131,814
|
172,000
|
||||||||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - End of period
|
$
|
886,812
|
$
|
131,814
|
$
|
886,812
|
$
|
131,814
|
||||||||
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO THE CONSOLIDATED BALANCE SHEET:
|
||||||||||||||||
Cash and cash equivalents
|
$
|
886,812
|
$
|
129,814
|
$
|
886,812
|
$
|
129,814
|
||||||||
Restricted cash – Included in other long-term assets
|
—
|
2,000
|
—
|
2,000
|
||||||||||||
Total cash, cash equivalents, and restricted cash
|
$
|
886,812
|
$
|
131,814
|
$
|
886,812
|
$
|
131,814
|
Three months ended
December 31,
|
Year ended
December 31,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Reconciliation of gross profit and gross margin
|
||||||||||||||||
GAAP gross profit
|
$
|
83,777
|
$
|
43,461
|
$
|
269,137
|
$
|
138,635
|
||||||||
Share-based compensation
|
2,210
|
975
|
7,681
|
2,720
|
||||||||||||
Non-GAAP gross profit
|
85,987
|
44,436
|
276,818
|
141,355
|
||||||||||||
GAAP gross margin
|
88
|
%
|
87
|
%
|
87
|
%
|
86
|
%
|
||||||||
Non-GAAP gross margin
|
90
|
%
|
89
|
%
|
90
|
%
|
88
|
%
|
||||||||
Reconciliation of operating expenses
|
||||||||||||||||
GAAP research and development
|
$
|
21,959
|
$
|
11,428
|
$
|
73,686
|
$
|
43,480
|
||||||||
Share-based compensation
|
(6,554
|
)
|
(2,177
|
)
|
(21,779
|
)
|
(12,142
|
)
|
||||||||
Non-GAAP research and development
|
$
|
15,405
|
$
|
9,251
|
$
|
51,907
|
$
|
31,338
|
||||||||
GAAP sales and marketing
|
$
|
76,535
|
$
|
56,901
|
$
|
268,083
|
$
|
191,353
|
||||||||
Share-based compensation
|
(7,117
|
)
|
(3,128
|
)
|
(23,135
|
)
|
(10,068
|
)
|
||||||||
Non-GAAP sales and marketing
|
$
|
69,418
|
$
|
53,773
|
$
|
244,948
|
$
|
181,285
|
||||||||
GAAP general and administrative
|
$
|
16,881
|
$
|
36,828
|
$
|
53,493
|
$
|
54,339
|
||||||||
Share-based compensation
|
(5,788
|
)
|
(31,742
|
)
|
(20,934
|
)
|
(39,415
|
)
|
||||||||
Non-GAAP general and administrative
|
$
|
11,093
|
$
|
5,086
|
$
|
32,559
|
$
|
14,924
|
||||||||
Reconciliation of operating loss
|
||||||||||||||||
GAAP operating loss
|
$
|
(31,598
|
)
|
$
|
(61,696
|
)
|
$
|
(126,125
|
)
|
$
|
(150,537
|
)
|
||||
Share-based compensation
|
$
|
21,669
|
$
|
38,022
|
$
|
73,529
|
$
|
64,345
|
||||||||
Non-GAAP operating loss
|
$
|
(9,929
|
)
|
$
|
(23,674
|
)
|
$
|
(52,596
|
)
|
$
|
(86,192
|
)
|
||||
GAAP operating margin
|
(33
|
)%
|
(123
|
)%
|
(41
|
)%
|
(93
|
)%
|
||||||||
Non-GAAP operating margin
|
(10
|
)%
|
(47
|
)%
|
(17
|
)%
|
(53
|
)%
|
||||||||
Reconciliation of net loss
|
||||||||||||||||
GAAP net loss
|
$
|
(32,605
|
)
|
$
|
(62,861
|
)
|
$
|
(129,294
|
)
|
$
|
(152,203
|
)
|
||||
Share-based compensation
|
21,669
|
38,022
|
73,529
|
64,345
|
||||||||||||
Tax benefit related to share-based compensation(1)
|
(780
|
)
|
—
|
(3,069
|
)
|
—
|
||||||||||
Non-GAAP net loss
|
$
|
(11,716
|
)
|
$
|
(24,839
|
)
|
$
|
(58,834
|
)
|
$
|
(87,858
|
)
|
||||
Reconciliation of net loss attributable to ordinary shareholders
|
||||||||||||||||
GAAP net loss attributable to ordinary shareholders
|
$
|
(32,605
|
)
|
$
|
(67,578
|
)
|
$
|
(137,497
|
)
|
$
|
(170,916
|
)
|
||||
Deemed dividend to preferred shareholders
|
—
|
4,717
|
8,203
|
18,713
|
||||||||||||
Share-based compensation
|
21,669
|
38,022
|
73,529
|
64,345
|
||||||||||||
Tax benefit related to share-based compensation(1)
|
(780
|
)
|
—
|
(3,069
|
)
|
—
|
||||||||||
Non-GAAP net loss
|
$
|
(11,716
|
)
|
$
|
(24,839
|
)
|
$
|
(58,834
|
)
|
$
|
(87,858
|
)
|
||||
GAAP net loss per share attributable to ordinary shareholders, basic and diluted
|
$
|
(0.73
|
)
|
$
|
(5.48
|
)
|
$
|
(4.53
|
)
|
$
|
(14.19
|
)
|
||||
Non-GAAP net loss per share, basic and diluted
|
$
|
(0.26
|
)
|
$
|
(0.64
|
)
|
$
|
(1.33
|
)
|
$
|
(2.28
|
)
|
||||
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)
|
44,741,992
|
12,334,890
|
30,332,006
|
12,048,909
|
||||||||||||
Additional shares giving effect to IPO and concurrent private placement (2)
|
—
|
—
|
2,226,182
|
—
|
||||||||||||
Additional shares giving effect to conversion of convertible preferred shares at the beginning of the period (3)
|
—
|
26,440,239
|
11,662,681
|
26,440,239
|
||||||||||||
Weighted average number of ordinary shares outstanding used in computing basic and diluted net loss per share (Non-GAAP)
|
44,741,992
|
38,775,129
|
44,220,869
|
38,489,148
|
(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 (used in) operating activities to adjusted free cash flow
|
||||||||||||||||
Three months ended
December 31,
|
Year ended
December 31,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Net cash provided by (used in) operating activities
|
$
|
13,516
|
$
|
(10,952
|
)
|
$
|
16,355
|
$
|
(37,175
|
)
|
||||||
Purchase of property and equipment
|
(2,974
|
)
|
(1,686
|
)
|
(11,578
|
)
|
(4,362
|
)
|
||||||||
Capitalized software development costs
|
(432
|
)
|
(584
|
)
|
(2,180
|
)
|
(1,119
|
)
|
||||||||
Purchase of property and equipment related to build-out of our new corporate headquarters
|
—
|
1,355
|
7,303
|
1,964
|
||||||||||||
Adjusted free cash flow
|
10,110
|
(11,867
|
)
|
9,900
|
(40,692
|
)
|