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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 | Description |
99.1 | Press release, dated May 15, 2023 |
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Revenue was $162.3 million, an increase of 50% year-over-year, or 51% on an FX-adjusted basis.
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GAAP operating loss was $22.8 million compared to a loss of $67.5 million in the first quarter of 2022; GAAP operating margin was negative 14% compared to negative 62% in the first
quarter of 2022.
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Non-GAAP operating loss was $0.3 million compared to a loss of $43.8 million in the first quarter of 2022; non-GAAP operating margin was negative 0% compared to negative 40% in the first
quarter of 2022.
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GAAP net loss per basic and diluted share was $0.31 compared to GAAP net loss per basic and diluted share of $1.48 in the first quarter of 2022; non-GAAP net income per basic and diluted
share was $0.15 and $0.14, respectively, compared to non-GAAP net loss per basic and diluted share of $0.96 in the first quarter of 2022.
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Net cash provided by operating activities was $42.7 million, with $38.7 million of free cash flow, compared to net cash used in operating activities of $12.9 million and negative $16.2
million of free cash flow in the first quarter of 2022.
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Net dollar retention rate was over 115%.
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Net dollar retention rate for customers with more than 10 users was over 125%.
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Net dollar retention rate for customers with more than $50,000 in annual recurring revenue (“ARR”) was over 125%.
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The number of paid customers with more than $50,000 in ARR was 1,683, up 75% from 960 as of March 31, 2022.
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Announced the monday AI Assistant, with plans to open the platform for third party developers to build AI apps on the monday Work OS.
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Launched the first phase of mondayDB, upgrading our underlying infrastructure.
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Moved monday dev – our product tailored for development teams – out of beta.
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Opened monday sales CRM and monday dev to existing customers.
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Total revenue of $168 million to $170 million, representing year-over-year growth of 36% to 37%.
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Non-GAAP operating income of $2 million to $4 million and operating margin of 1% to 2%.
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Total revenue of $702 million to $706 million, representing year-over-year growth of 35% to 36%.
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Non-GAAP operating income of $8 million to $12 million and operating margin of approximately 1%.
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Three months ended
March 31,
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2023
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2022
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(unaudited)
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||||||||
Revenue
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$
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162,256
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$
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108,497
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Cost of revenue
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17,014
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14,609
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Gross profit
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145,242
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93,888
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Operating expenses:
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Research and development
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37,063
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26,541
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Sales and marketing
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107,680
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115,973
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General and administrative
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23,251
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18,870
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Total operating expenses
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167,994
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161,384
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Operating loss
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(22,752
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)
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(67,496
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)
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Financial income, net
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9,883
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1,993
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Loss before income taxes
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(12,869
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)
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(65,503
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)
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Income tax
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(1,798
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)
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(1,175
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)
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Net loss
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$
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(14,667
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)
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$
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(66,678
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)
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Net loss per share, basic and diluted
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$
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(0.31
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)
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$
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(1.48
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)
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Weighted-average ordinary shares used in calculating net loss per ordinary share, basic and diluted
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47,912,353
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44,978,894
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March 31,
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December 31,
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2023
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2022
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(unaudited)
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(audited)
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ASSETS | ||||||||
CURRENT ASSETS:
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Cash and cash equivalents
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$
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935,565
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$
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885,894
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Accounts receivable, net
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18,986
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13,226
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Prepaid expenses and other current assets
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28,820
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24,725
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Total current assets
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983,371
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923,845
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LONG TERM-ASSETS:
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Property and equipment, net
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36,766
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34,416
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Operating lease right-of-use assets
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76,865
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80,197
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Other long-term assets
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564
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585
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Total long-term assets
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114,195
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115,198
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Total assets
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$
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1,097,566
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$
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1,039,043
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LIABILITIES AND SHAREHOLDERS' EQUITY
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CURRENT LIABILITIES:
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Accounts payable
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$
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11,179
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$
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7,335
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Accrued expenses and other current liabilities
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85,017
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73,706
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Deferred revenue, current
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229,064
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198,099
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Operating lease liabilities, current
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19,625
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19,083
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Total current liabilities
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344,885
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298,223
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LONG-TERM LIABILITIES
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Operating lease liabilities, non-current
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55,058
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58,638
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Deferred revenue, non-current
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2,443
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2,442
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Total long-term liabilities
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57,501
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61,080
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Total liabilities
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402,386
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359,303
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SHAREHOLDERS' EQUITY:
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Other comprehensive loss
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(3,034
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)
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(3,210
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)
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Share capital and additional paid-in capital
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1,295,408
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1,265,477
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Accumulated deficit
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(597,194
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)
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(582,527
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)
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Total shareholders’ equity
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695,180
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679,740
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Total liabilities and shareholders’ equity
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$
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1,097,566
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$
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1,039,043
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Three months ended
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||||||||
March 31,
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2023
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2022
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(unaudited)
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CASH FLOWS FROM OPERATING ACTIVITIES:
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Net loss
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$
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(14,667
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)
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$
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(66,678
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)
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Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
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Depreciation and amortization
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1,972
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1,127
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Share-based compensation
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22,459
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23,666
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Changes in operating assets and liabilities:
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Accounts receivable, net
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(5,760
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)
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(1,385
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)
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Prepaid expenses and other assets
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(162
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)
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4,700
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Accounts payable
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3,816
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(6,176
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)
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Accrued expenses and other liabilities, net
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4,104
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5,342
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Deferred revenue
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30,966
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26,492
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Net cash provided by (used in) operating activities
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42,728
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(12,912
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)
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CASH FLOWS FROM INVESTING ACTIVITIES:
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Purchase of property and equipment
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(3,561
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)
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(2,354
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)
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Capitalized software development costs
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(485
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)
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(926
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)
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Net cash used in investing activities
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(4,046
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)
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(3,280
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)
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Three months ended
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March 31,
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2023 |
2022 |
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(unaudited) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
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Proceeds from exercise of share options and employee share purchase plan
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5,086
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1,351
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Receipt (repayment) of tax advance relating to exercises of share options and RSUs, net
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5,903
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(22,384
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)
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Capital lease payments
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—
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(11
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)
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Net cash provided by (used in) financing activities
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10,989
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(21,044
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)
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INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
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49,671
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(37,236
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)
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CASH, CASH EQUIVALENTS AND RESTRICTED CASH – Beginning of period
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885,894
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886,812
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CASH, CASH EQUIVALENTS AND RESTRICTED CASH – End of period
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$
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935,565
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$
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849,576
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RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO THE CONSOLIDATED BALANCE SHEET:
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Cash and cash equivalents
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$
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935,565
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$
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849,576
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Total cash, cash equivalents, and restricted cash
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$
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935,565
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$
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849,576
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Three months ended
March 31,
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2023
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2022
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(unaudited)
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Reconciliation of gross profit and gross margin
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GAAP gross profit
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$
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145,242
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$
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93,888
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Share-based compensation
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1,477
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2,441
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Non-GAAP gross profit
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$
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146,719
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$
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96,329
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GAAP gross margin
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90
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%
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87
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%
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Non-GAAP gross margin
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90
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%
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89
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%
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Reconciliation of operating expenses
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GAAP research and development
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$
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37,063
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$
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26,541
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Share-based compensation
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(8,544
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)
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(7,388
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)
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Non-GAAP research and development
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$
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28,519
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$
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19,153
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GAAP sales and marketing
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$
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107,680
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$
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115,973
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Share-based compensation
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(5,028
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)
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(7,378
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)
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Non-GAAP sales and marketing
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$
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102,652
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$
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108,595
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GAAP general and administrative
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$
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23,251
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$
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18,870
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Share-based compensation
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(7,410
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)
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(6,459
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)
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Non-GAAP general and administrative
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$
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15,841
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$
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12,411
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Reconciliation of operating loss
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||||||||
GAAP operating loss
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$
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(22,752
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)
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$
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(67,496
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)
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Share-based compensation
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22,459
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23,666
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Non-GAAP operating loss
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$
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(293
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)
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$
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(43,830
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)
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GAAP operating margin
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(14
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)%
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(62
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)%
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Non-GAAP operating margin
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(0
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)%
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(40
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)%
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Three months ended
March 31,
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2023 |
2022 |
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(unaudited)
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Reconciliation of net income (loss)
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GAAP net loss
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$
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(14,667
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)
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$
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(66,678
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)
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Share-based compensation
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22,459
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23,666
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Tax benefit related to share-based compensation (1)
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(559
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)
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(227
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)
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Non-GAAP net income (loss)
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$
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7,233
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$
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(43,239
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)
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GAAP net loss per share, basic and diluted
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$
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(0.31
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)
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$
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(1.48
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)
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Non-GAAP net income (loss) per share, basic
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$
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0.15
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$
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(0.96
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)
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Non-GAAP net income (loss) per share, diluted
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$
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0.14
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$
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(0.96
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)
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Reconciliation of basic and diluted weighted average number of shares outstanding
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||||||||
Weighted average number of ordinary shares outstanding used in computing basic net income (loss) per share (GAAP)
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47,912,353
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44,978,894
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Dilution from share options and RSUs(2)
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2,926,057
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—
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Weighted average number of ordinary shares outstanding used in computing diluted net income (loss) per share (Non-GAAP)
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50,838,410
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44,978,894
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(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.
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(2) |
The effect of these dilutive shares was not included in the GAAP calculation of diluted net loss per share for the three months ended March 31, 2023 because the effect would have been anti-dilutive.
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Three months ended
March 31,
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||||||||
2023
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2022
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|||||||
(unaudited)
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||||||||
Revenue growth as reported
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50
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%
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84
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%
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Impact of foreign currency
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1
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%
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1
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%
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Revenue growth, FX adjusted
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51
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%
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85
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%
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Three months ended
March 31,
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||||||||
2023
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2022
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|||||||
(unaudited)
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||||||||
Net cash provided by (used in) operating activities
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$
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42,728
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$
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(12,912
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)
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Purchase of property and equipment
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(3,561
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)
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(2,354
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)
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Capitalized software development costs
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(485
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)
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(926
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)
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Free cash flow
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$
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38,682
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$
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(16,192
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)
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Free cash flow margin
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24
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%
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(15
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)%
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