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MONDAY.COM LTD.
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By:
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/s/ Shiran Nawi
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Name: Shiran Nawi
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Title: Chief People and Legal Officer
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Exhibit
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Description
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99.1 |
●
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Revenue was $175.7 million, an increase of 42% year-over-year, or 43% on an FX-adjusted basis.
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●
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GAAP operating loss was $12.2 million compared to a loss of $46.2 million in the second quarter of 2022; GAAP operating margin was negative 7% compared to negative 37% in the second quarter
of 2022.
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●
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Non-GAAP operating income was $16.6 million compared to a loss of $15.4 million in the second quarter of 2022; non-GAAP operating margin was 9% compared to negative 12% in the second
quarter of 2022.
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●
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GAAP net loss per basic and diluted share was $0.15 compared to GAAP net loss per basic and diluted share of $1.01 in the second quarter of 2022; non-GAAP net income per basic and diluted
share was $0.43 and $0.41, respectively, compared to non-GAAP net loss per basic and diluted share of $0.33 in the second quarter of 2022.
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●
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Net cash provided by operating activities was $47.6 million, with $45.9 million of free cash flow, compared to net cash used in operating activities of $14.1 million and negative $19.3
million of free cash flow in the second quarter of 2022.
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●
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Net dollar retention rate was over 110%.
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●
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Net dollar retention rate for customers with more than 10 users was over 120%.
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●
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Net dollar retention rate for customers with more than $50,000 in annual recurring revenue (“ARR”) was over 120%.
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●
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The number of paid customers with more than $50,000 in ARR was 1,892, up 63% from 1,160 as of June 30, 2022.
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Announced the completion and release of mondayDB 1.0, the initial version of our new infrastructure for the Work OS platform, to all accounts.
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Launched the monday AI Assistant and introduced new AI capabilities, including automated task generation, formula builder, email composition and
content generation.
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Introduced the AI solution builder, allowing customers to build personalized boards for any process through the power of an Azure OpenAI-powered
chatbot.
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●
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Total revenue of $181 million to $183 million, representing year-over-year growth of 32% to 34%.
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●
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Non-GAAP operating income of $4 million to $6 million and operating margin of 2% to 3%.
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●
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Total revenue of $713 million to $717 million, representing year-over-year growth of 37% to 38%.
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●
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Non-GAAP operating income of $24 million to $28 million and operating margin of 3% to 4%.
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Three months ended June 30,
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Six months ended June 30,
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|||||||||||||||
2023
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2022
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2023
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2022
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|||||||||||||
(unaudited)
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(unaudited)
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|||||||||||||||
Revenue
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$
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175,679
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$
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123,718
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$
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337,935
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$
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232,215
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||||||||
Cost of revenue
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19,516
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16,730
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36,530
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31,339
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||||||||||||
Gross profit
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156,163
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106,988
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301,405
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200,876
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||||||||||||
Operating expenses:
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||||||||||||||||
Research and development
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39,106
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33,962
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76,169
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60,503
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||||||||||||
Sales and marketing
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107,443
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96,740
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215,123
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212,713
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||||||||||||
General and administrative
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21,781
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22,466
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45,032
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41,336
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||||||||||||
Total operating expenses
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168,330
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153,168
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336,324
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314,552
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||||||||||||
Operating loss
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(12,167
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)
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(46,180
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)
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(34,919
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)
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(113,676
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)
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||||||||
Financial income, net
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7,612
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2,452
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17,495
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4,445
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||||||||||||
Loss before income taxes
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(4,555
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)
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(43,728
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)
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(17,424
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)
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(109,231
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)
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||||||||
Income tax
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(2,480
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)
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(1,943
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)
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(4,278
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)
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(3,118
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)
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||||||||
Net loss
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$
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(7,035
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)
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$
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(45,671
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)
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$
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(21,702
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)
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$
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(112,349
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)
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||||
Net loss per share, basic and diluted
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$
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(0.15
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)
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$
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(1.01
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)
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$
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(0.45
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)
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$
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(2.50
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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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48,209,039
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45,074,912
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48,061,281
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45,027,168
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June 30,
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December 31,
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|||||||
2023
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2022
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|||||||
ASSETS
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(unaudited)
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(audited)
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||||||
CURRENT ASSETS:
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||||||||
Cash and cash equivalents
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$
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989,377
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$
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885,894
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||||
Accounts receivable, net
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15,136
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13,226
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||||||
Prepaid expenses and other current assets
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27,398
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24,725
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||||||
Total current assets
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1,031,911
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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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36,481
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34,416
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||||||
Operating lease right-of-use assets
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71,872
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80,197
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||||||
Other long-term assets
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574
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585
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||||||
Total long-term assets
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108,927
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115,198
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||||||
Total assets
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$
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1,140,838
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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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10,837
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$
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7,335
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||||
Accrued expenses and other current liabilities
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89,741
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73,706
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||||||
Deferred revenue, current
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246,610
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198,099
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||||||
Operating lease liabilities, current
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18,952
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19,083
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||||||
Total current liabilities
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366,140
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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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50,396
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58,638
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Deferred revenue, non-current
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3,046
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2,442
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Total long-term liabilities
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53,442
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61,080
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||||||
Total liabilities
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419,582
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359,303
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||||||
SHAREHOLDERS' EQUITY:
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||||||||
Other comprehensive loss
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(2,111
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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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1,327,596
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1,265,477
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||||||
Accumulated deficit
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(604,229
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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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721,256
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679,740
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||||||
Total liabilities and shareholders’ equity
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$
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1,140,838
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$
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1,039,043
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Three months ended
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Six months ended
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|||||||||||||||
June 30,
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June 30,
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|||||||||||||||
2023
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2022
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2023
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2022
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|||||||||||||
(unaudited)
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(unaudited)
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|||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
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||||||||||||||||
Net loss
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$
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(7,035
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)
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$
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(45,671
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)
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$
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(21,702
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)
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$
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(112,349
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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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2,164
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1,397
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4,136
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2,524
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||||||||||||
Share-based compensation
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28,784
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30,822
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51,243
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54,488
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||||||||||||
Changes in operating assets and liabilities:
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||||||||||||||||
Accounts receivable, net
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3,850
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384
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(1,910
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)
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(1,001
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)
|
||||||||||
Prepaid expenses and other assets
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6,149
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(7,995
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)
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5,987
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(3,295
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)
|
||||||||||
Accounts payable
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(220
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)
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(6,448
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)
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3,596
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(12,624
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)
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|||||||||
Accrued expenses and other liabilities, net
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(4,252
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)
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(3,502
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)
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(148
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)
|
1,840
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|||||||||
Deferred revenue
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18,149
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16,952
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49,115
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43,444
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||||||||||||
Net cash provided by (used in) operating activities
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47,589
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(14,061
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)
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90,317
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(26,973
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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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(1,123
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)
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(4,550
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)
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(4,684
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)
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(6,904
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)
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||||||||
Capitalized software development costs
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(534
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)
|
(684
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)
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(1,019
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)
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(1,610
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)
|
||||||||
Net cash used in investing activities
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(1,657
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)
|
(5,234
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)
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(5,703
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)
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(8,514
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)
|
||||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||||||
Proceeds from exercise of share options and employee share purchase plan
|
5,267
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3,354
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10,353
|
4,705
|
||||||||||||
Receipt (repayment) of tax advance relating to exercises of share options and RSUs, net
|
2,613
|
1,017
|
8,516
|
(21,367
|
)
|
|||||||||||
Capital lease payments
|
-
|
(32
|
)
|
-
|
(43
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)
|
||||||||||
Net cash provided by (used in) financing activities
|
7,880
|
4,339
|
18,869
|
(16,705
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)
|
|||||||||||
INCREASE (DECREASE) IN CASH, AND CASH EQUIVALENTS
|
53,812
|
(14,956
|
)
|
103,483
|
(52,192
|
)
|
||||||||||
CASH AND CASH EQUIVALENTS - Beginning of period
|
935,565
|
849,576
|
885,894
|
886,812
|
||||||||||||
CASH AND CASH EQUIVALENTS - End of period
|
$
|
989,377
|
$
|
834,620
|
$
|
989,377
|
$
|
834,620
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||
Reconciliation of gross profit and gross margin
|
||||||||||||||||
GAAP gross profit
|
$
|
156,163
|
$
|
106,988
|
$
|
301,405
|
$
|
200,876
|
||||||||
Share-based compensation
|
1,845
|
2,915
|
3,322
|
5,356
|
||||||||||||
Non-GAAP gross profit
|
$
|
158,008
|
$
|
109,903
|
$
|
304,727
|
$
|
206,232
|
||||||||
GAAP gross margin
|
89
|
%
|
86
|
%
|
89
|
%
|
87
|
%
|
||||||||
Non-GAAP gross margin
|
90
|
%
|
89
|
%
|
90
|
%
|
89
|
%
|
||||||||
Reconciliation of operating expenses
|
||||||||||||||||
GAAP research and development
|
$
|
39,106
|
$
|
33,962
|
$
|
76,169
|
$
|
60,503
|
||||||||
Share-based compensation
|
(11,198
|
)
|
(9,999
|
)
|
(19,742
|
)
|
(17,387
|
)
|
||||||||
Non-GAAP research and development
|
$
|
27,908
|
$
|
23,963
|
$
|
56,427
|
$
|
43,116
|
||||||||
GAAP sales and marketing
|
$
|
107,443
|
$
|
96,740
|
$
|
215,123
|
$
|
212,713
|
||||||||
Share-based compensation
|
(8,612
|
)
|
(10,075
|
)
|
(13,640
|
)
|
(17,453
|
)
|
||||||||
Non-GAAP sales and marketing
|
$
|
98,831
|
$
|
86,665
|
$
|
201,483
|
$
|
195,260
|
||||||||
GAAP general and administrative
|
$
|
21,781
|
$
|
22,466
|
$
|
45,032
|
$
|
41,336
|
||||||||
Share-based compensation
|
(7,129
|
)
|
(7,833
|
)
|
(14,539
|
)
|
(14,292
|
)
|
||||||||
Non-GAAP general and administrative
|
$
|
14,652
|
$
|
14,633
|
$
|
30,493
|
$
|
27,044
|
||||||||
Reconciliation of operating income (loss)
|
||||||||||||||||
GAAP operating loss
|
$
|
(12,167
|
)
|
$
|
(46,180
|
)
|
$
|
(34,919
|
)
|
$
|
(113,676
|
)
|
||||
Share-based compensation
|
28,784
|
30,822
|
51,243
|
54,488
|
||||||||||||
Non-GAAP operating income (loss)
|
$
|
16,617
|
$
|
(15,358
|
)
|
$
|
16,324
|
$
|
(59,188
|
)
|
||||||
GAAP operating margin
|
(7
|
)%
|
(37
|
)%
|
(10
|
)%
|
(49
|
)%
|
||||||||
Non-GAAP operating margin
|
9
|
%
|
(12
|
)%
|
5
|
%
|
(25
|
)%
|
Reconciliation of net income (loss)
|
||||||||||||||||
GAAP net loss
|
$
|
(7,035
|
)
|
$
|
(45,671
|
)
|
$
|
(21,702
|
)
|
$
|
(112,349
|
)
|
||||
Share-based compensation
|
28,784
|
30,822
|
51,243
|
54,488
|
||||||||||||
Tax benefit related to share-based compensation(1)
|
(786
|
)
|
(68
|
)
|
(1,345
|
)
|
(295
|
)
|
||||||||
Non-GAAP net income (loss)
|
$
|
20,963
|
$
|
(14,917
|
)
|
$
|
28,196
|
$
|
(58,156
|
)
|
||||||
GAAP net loss per share, basic and diluted
|
$
|
(0.15
|
)
|
$
|
(1.01
|
)
|
$
|
(0.45
|
)
|
$
|
(2.50
|
)
|
||||
Non-GAAP net income (loss) per share, basic
|
$
|
0.43
|
$
|
(0.33
|
)
|
$
|
0.59
|
$
|
(1.29
|
)
|
||||||
Non-GAAP net income (loss) per share, diluted
|
$
|
0.41
|
$
|
(0.33
|
)
|
$
|
0.55
|
$
|
(1.29
|
)
|
||||||
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 income (loss) per share (GAAP)
|
48,209,039
|
45,074,912
|
48,061,281
|
45,027,168
|
||||||||||||
Dilution from share options and RSUs(2)
|
2,949,919
|
-
|
2,932,350
|
-
|
||||||||||||
Weighted average number of ordinary shares outstanding used in computing basic and diluted net income (loss) per share (Non-GAAP)
|
51,158,958
|
45,074,912
|
50,993,631
|
45,027,168
|
(1) |
The tax benefits generated from the exercise of the disqualifying disposition of incentive share options were excluded in calculating non-GAAP net income (loss) and non-GAAP net income (loss) per basic and diluted share. The Company
believes that excluding these tax benefits enables investors to see the full effect that excluding share-based compensation expenses had on the operating results
|
(2) |
The effect of these dilutive shares was not included in the GAAP calculation of diluted net loss per share for the six and three months ended June 30, 2023, because the effect would have been anti-dilutive.
|
Three months ended
June 30,
|
||||||||
2023
|
2022
|
|||||||
(unaudited)
|
||||||||
Revenue growth as reported
|
42
|
%
|
75
|
%
|
||||
Impact of foreign currency
|
1
|
%
|
2
|
%
|
||||
Revenue growth, FX adjusted
|
43
|
%
|
77
|
%
|
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||
Net cash provided by (used in) operating activities
|
$
|
47,589
|
$
|
(14,061
|
)
|
$
|
90,317
|
$
|
(26,973
|
)
|
||||||
Purchase of property and equipment
|
(1,123
|
)
|
(4,550
|
)
|
(4,684
|
)
|
(6,904
|
)
|
||||||||
Capitalized software development costs
|
(534
|
)
|
(684
|
)
|
(1,019
|
)
|
(1,610
|
)
|
||||||||
Free cash flow
|
$
|
45,932
|
$
|
(19,295
|
)
|
$
|
84,614
|
$
|
(35,487
|
)
|
||||||
Free cash flow margin
|
26
|
%
|
(16
|
)%
|
25
|
%
|
(15
|
)%
|