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Subjects: EARNINGS, Conference Call, Webcast

Riskified Reports Record Second Quarter and First Half Performance, Accelerates Path to Profitability and Raises Annual Guidance for 2022


Riskified Ltd. (NYSE: RSKD) (the "Company"), a risk management platform enabling frictionless eCommerce, today announced financial results for the three and six months ended June 30, 2022. The Company will host an investor call to discuss these results today at 8:30 a.m. Eastern Time.

"I am extremely pleased that for the first six months of the year we generated record revenues and GMV as the business continues to grow, capture market share, and scale. This achievement is even more impressive in the current challenging economic landscape," said Eido Gal, Co-Founder and Chief Executive Officer of Riskified.

"As positive as I feel about our top-line performance, I am also excited by the progress that we've made to lower and optimize our cost base. This allowed us to raise our Adjusted EBITDA outlook for 2022, and accelerate our path to profitability, while keeping our long-term growth outlook intact."

Q2 2022 Business Highlights

Q2 2022 Financial Performance Highlights

The following table summarizes our consolidated financial results for the three and six months ended June 30, 2022 and 2021, in thousands except where indicated:

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

(unaudited)

 

(audited)

Gross merchandise volume ("GMV") in millions(1)

$

25,399

 

 

$

21,453

 

 

$

48,077

 

 

$

40,381

 

Increase in GMV year over year

 

18

%

 

 

 

 

19

%

 

 

Revenue

$

59,932

 

 

$

55,692

 

 

$

118,777

 

 

$

106,775

 

Increase in revenues year over year

 

8

%

 

 

 

 

11

%

 

 

 

 

 

 

 

 

 

 

Gross profit

$

30,606

 

 

$

33,302

 

 

$

60,974

 

 

$

61,930

 

Gross profit margin

 

51

%

 

 

60

%

 

 

51

%

 

 

58

%

 

 

 

 

 

 

 

 

Operating profit (loss)

$

(32,787

)

 

$

(1,650

)

 

$

(65,613

)

 

$

(4,999

)

Net profit (loss)

$

(33,028

)

 

$

(20,489

)

 

$

(66,292

)

 

$

(64,141

)

 

 

 

 

 

 

 

 

Adjusted EBITDA(1)

$

(13,625

)

 

$

1,555

 

 

$

(27,072

)

 

$

1,259

 

"Building on the momentum from a strong first quarter, we continued to see the expansion of our volume reviewed across all geographies and a majority of industries in the second quarter. Our business remains broad-based and diversified, and I am especially encouraged by our recent growth in the Tickets and Travel industry," said Aglika Dotcheva, Chief Financial Officer of Riskified.

"We thoroughly analyzed our budget for 2022 and took decisive action to identify areas of cost savings, which resulted in strong bottom line improvements in the second quarter, and our ability to make a meaningful update to our Adjusted EBITDA outlook for the second half of the year. We believe that our new optimized cost structure should increase the ROI of certain projects, and I am very excited about our progress in this area."

Financial Outlook

Our record first half performance and a solid second half pipeline of merchant activity has resulted in an upward revised revenue outlook for the company. We are increasing our revenue guidance for the year ending December 31, 2022 as follows:

In addition, through ongoing expense discipline and a focused evaluation of our operating expenses, we made tremendous strides in reducing our budgeted expense base while fully maintaining our growth outlook. As a result, we are raising our Adjusted EBITDA guidance for the year ending December 31, 2022 as follows:

(1) GMV is a key performance indicator and Adjusted EBITDA is a non-GAAP metric. See "Key Performance Indicators and Non-GAAP Metrics" for additional information regarding this non-GAAP metric and "Reconciliation of GAAP to Non-GAAP Metrics" for a reconciliation of this non-GAAP metric to the most directly comparable GAAP metric.

 

(2) We are not able to provide a reconciliation of Adjusted EBITDA guidance for the fiscal year ending December 31, 2022 to net profit (loss) because certain items that are excluded from Adjusted EBITDA but included in net profit (loss), the most directly comparable GAAP financial measure, cannot be predicted on a forward-looking basis without unreasonable effort or are not within our control. In particular, we are unable to forecast the magnitude of share-based compensation expense and foreign currency transaction gains or losses as applicable without unreasonable efforts, and these items could significantly impact, either individually or in the aggregate, GAAP metrics in the future.

Conference Call and Webcast Details

The Company will host a conference call to discuss its financial results today, August 10, 2022 at 8:30 a.m. Eastern Time. A live webcast of the call can be accessed from Riskified's Investor Relations website at ir.riskified.com. To access the call by phone, please go to this link (Riskified Q2'22 Registration Link), and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time at ir.riskified.com.

Key Performance Indicators and Non-GAAP Metrics

This press release and the accompanying tables and related presentation materials contain certain key performance indicators and non-GAAP metrics: GMV, Adjusted EBITDA, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP cost of revenue, non-GAAP operating expenses by line item, Free Cash Flow, non-GAAP net profit (loss) and non-GAAP net profit (loss) per share. These non-GAAP metrics should not be construed as an inference that our future results will be unaffected by unusual or other items. Adjusted EBITDA, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP cost of revenue, non-GAAP operating expenses by line item, non-GAAP net profit (loss) and non-GAAP net profit (loss) per share have limitations as analytical tools in that they do not reflect certain cash costs that may recur in the future, including, among other things, cash requirements for costs to replace assets being depreciated and amortized or cash payments for taxes. Management compensates for these limitations by relying on our GAAP results in addition to using these non-GAAP metrics as supplemental measures of our performance. The non-GAAP metrics used herein are not necessarily comparable to similarly titled captions of other companies due to different methods of calculation. Non-GAAP financial metrics should not be considered in isolation, as an alternative to, or superior to information prepared and presented in accordance with GAAP. These metrics are frequently used by analysts, investors and other interested parties to evaluate companies in our industry. By providing these non-GAAP metrics together with a reconciliation to the most comparable U.S. GAAP measure, we believe we are enhancing investors' understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives.

We define Gross Merchandise Volume ("GMV") as the gross total dollar value of orders received by our merchants and reviewed through our eCommerce risk management platform during the period indicated, including orders that we did not approve.

We define Adjusted EBITDA as net profit (loss) adjusted to remove the effects of the provision for income taxes, interest income, net, other income (expense), net, depreciation and amortization, share-based compensation expense, and payroll taxes related to share-based compensation.

We define Non-GAAP gross profit as GAAP gross profit adjusted to remove the effects of depreciation and amortization, share-based compensation expense, and payroll taxes related to share-based compensation, if applicable. Non-GAAP gross profit margin represents Non-GAAP gross profit expressed as a percentage of revenue.

We define non-GAAP cost of revenue as GAAP cost of revenue adjusted to remove the effects of depreciation and amortization, share-based compensation expense, and payroll taxes related to share-based compensation, if applicable.

We define non-GAAP operating expenses by line item as GAAP operating expenses adjusted to remove the effects of depreciation and amortization, share-based compensation expense, and payroll taxes related to share-based compensation, where applicable.

We define Free Cash Flow as net cash provided by (used in) operating activities, less cash payments for property and equipment and capitalized software development costs.

We define non-GAAP net profit (loss), which is used to compute non-GAAP net profit (loss) per share, as GAAP net profit (loss) adjusted to remove the effects of unique or non-recurring items such as remeasurement losses on our convertible preferred share warrant liabilities and convertible preferred share tranche rights, as well as non-cash expenses such as depreciation and amortization, share-based compensation expense, and payroll taxes related to share-based compensation. We define non-GAAP net profit (loss) per share as non-GAAP net profit (loss) divided by non-GAAP weighted-average shares. We define non-GAAP weighted-average shares, which is used to compute non-GAAP net profit (loss) per share, as GAAP weighted average shares used to compute net profit (loss) per share, adjusted to reflect the ordinary shares issued in connection with the IPO that are outstanding as of the end of the period as if they were outstanding as of the beginning of the earliest period presented for comparability.

Adjusted EBITDA, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP cost of revenue, non-GAAP operating expenses by line item, Free Cash Flow, non-GAAP net profit (loss) and non-GAAP net profit (loss) per share are non-GAAP metrics that management and our board of directors use as a supplemental measure of our performance because they assist us in comparing our operating performance on a consistent basis, as they remove the impact of items that we believe do not directly reflect our core operations. We also use Adjusted EBITDA for planning purposes, including the preparation of our internal annual operating budget and financial projections, to evaluate the performance and effectiveness of our strategic initiatives and to evaluate our capacity to expand our business. Additionally, we provide Free Cash Flow because it is a non-GAAP liquidity measure that we believe provides useful information to management and investors about the amount of cash generated by the business that can be used for strategic opportunities, including investing in our business and strengthening our balance sheet.

See the tables below for reconciliations of these non-GAAP financial metrics to the most directly comparable GAAP metrics.

Forward Looking Statements

Certain statements in this press release may constitute "forward-looking" statements and information, within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 that relate to our current expectations and views of future events. In some cases, these forward-looking statements can be identified by words or phrases such as "may," "might," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "seek," "believe," "estimate," "predict," "potential," "continue," "contemplate," "possible" or similar words. These forward-looking statements are subject to risks, uncertainties and assumptions, some of which are beyond our control. In addition, these forward-looking statements, including statements regarding our revenue and adjusted EBITDA guidance for fiscal year 2022, future growth potential in new industries and new geographies, internal modeling assumptions, expectations as to the impact of cost reduction measures, and business plans and strategy, reflect our current views with respect to future events and are not a guarantee of future performance. Actual outcomes may differ materially from the information contained in the forward-looking statements as a result of a number of factors, including, without limitation, the following: our limited operating history and ability to manage our growth; our history of net losses and anticipated increasing operating expenses; our ability to achieve profitability; our ability to maintain and enhance our brand; our ability to attract new merchants, retain existing merchants and increase the sales of our products to existing enterprises; our dependence on the continued use of credit cards and other payment methods that expose our merchant to the risk of payment fraud; changes in laws and regulations related to the use of credit cards, such as PSD2, which have and may continue to impact our GMV and to change or reduce the use cases for our products; our ability to successfully implement our business plan in light of macroeconomic conditions, such as economic downturn, changes in consumer behavior (including as a result of COVID-19 related restrictions and macroeconomic conditions, including the rising inflationary environment), global supply chain issues and other factors that may impact eCommerce volumes and that may impact the demand for our services or have a material adverse impact on our and our business partners' financial condition and results of operations; our ability to continue to improve our machine learning models or if our machine learning models contain errors or are otherwise ineffective or do not operate properly; our ability to predict our future revenue given our lengthy sales cycles; seasonality; our ability to operate in a highly competitive industry; merchant concentration; our ability to achieve desired operating margins; our compliance with a wide variety of U.S. and international laws and regulations; our ability to develop enhancements to our products; our dependence on our executive officers and senior management, and our ability to attract new talent, particularly in Israel; our limited experience in determining the optimal pricing for our products; our ability to obtain additional financing on favorable terms or at all; our reliance on Amazon Web Services; our ability to detect errors, defects or disruptions in our platform; our ability to protect our merchants' and their consumers' personal or other data from a security breach and to comply with laws and regulations relating to consumer data privacy and data protection; our ability to expand into markets outside the United States; our ability to effectively expand our sales force to facilitate revenue growth; the concentration of our voting power as a result of our dual class structure; and other risk factors set forth in Section 3.D - "Risk Factors" in our Annual Report on Form 20-F, filed with the Securities and Exchange Commission ("SEC") on February 25, 2022, and other documents filed with or furnished to the SEC. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this press release. You should not put undue reliance on any forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by applicable law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

About Riskified

Riskified empowers businesses to realize the full potential of eCommerce by making it safe, accessible, and frictionless. We have built a next-generation eCommerce risk management platform that allows online merchants to create trusted relationships with their consumers. Leveraging machine learning that benefits from a global merchant network, our platform identifies the individual behind each online interaction, helping merchants?our customers?eliminate risk and uncertainty from their business. We drive higher sales and reduce fraud and other operating costs for our merchants and strive to provide superior consumer experiences, as compared to our merchants' performance prior to onboarding us. Learn more at riskified.com.

RISKIFIED LTD.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

 

 

As of

 

As of

 

June 30, 2022

 

December 31, 2021

 

(unaudited)

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

290,949

 

 

$

418,143

 

Restricted cash

 

4,169

 

 

 

6,984

 

Short-term deposits

 

192,540

 

 

 

85,132

 

Accounts receivable, net

 

28,330

 

 

 

35,477

 

Prepaid expenses and other current assets

 

7,474

 

 

 

19,338

 

Total current assets

 

523,462

 

 

 

565,074

 

Property and equipment, net

 

18,072

 

 

 

16,968

 

Operating lease right-of-use assets

 

37,397

 

 

 

?

 

Deferred contract acquisition costs

 

11,902

 

 

 

11,630

 

Other assets, noncurrent

 

8,226

 

 

 

6,962

 

Total assets

$

599,059

 

 

$

600,634

 

Liabilities, Convertible Preferred Shares, and Shareholders' Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

1,777

 

 

$

228

 

Accrued compensation and benefits

 

18,546

 

 

 

24,748

 

Guarantee obligations

 

9,770

 

 

 

12,112

 

Provision for chargebacks, net

 

9,634

 

 

 

12,020

 

Operating lease liabilities, current

 

4,151

 

 

 

?

 

Accrued expenses and other current liabilities

 

16,871

 

 

 

13,306

 

Total current liabilities

 

60,749

 

 

 

62,414

 

Operating lease liabilities, noncurrent

 

33,624

 

 

 

?

 

Other liabilities, noncurrent

 

5,567

 

 

 

9,359

 

Total liabilities

 

99,940

 

 

 

71,773

 

Shareholders' equity:

 

 

 

Class A ordinary shares, no par value; 900,000,000 shares authorized as of June 30, 2022 and December 31, 2021; 92,852,989 and 75,909,531 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively

 

?

 

 

 

?

 

Class B ordinary shares, no par value; 232,500,000 shares authorized as of June 30, 2022 and December 31, 2021; 74,284,784 and 88,055,520 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively

 

?

 

 

 

?

 

Additional paid-in capital

 

814,893

 

 

 

775,249

 

Accumulated other comprehensive profit (loss)

 

(2,918

)

 

 

176

 

Accumulated deficit

 

(312,856

)

 

 

(246,564

)

Total shareholders' equity

 

499,119

 

 

 

528,861

 

Total liabilities, convertible preferred shares, and shareholders' equity

$

599,059

 

 

$

600,634

 

RISKIFIED LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

(unaudited)

 

(unaudited)

Revenue

$

59,932

 

 

$

55,692

 

 

$

118,777

 

 

$

106,775

 

Cost of revenue

 

29,326

 

 

 

22,390

 

 

 

57,803

 

 

 

44,845

 

Gross profit

 

30,606

 

 

 

33,302

 

 

 

60,974

 

 

 

61,930

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

 

17,947

 

 

 

12,439

 

 

 

36,060

 

 

 

24,133

 

Sales and marketing

 

22,892

 

 

 

14,812

 

 

 

46,021

 

 

 

27,484

 

General and administrative

 

22,554

 

 

 

7,701

 

 

 

44,506

 

 

 

15,312

 

Total operating expenses

 

63,393

 

 

 

34,952

 

 

 

126,587

 

 

 

66,929

 

Operating profit (loss)

 

(32,787

)

 

 

(1,650

)

 

 

(65,613

)

 

 

(4,999

)

Interest income (expense), net

 

1,319

 

 

 

35

 

 

 

1,993

 

 

 

69

 

Other income (expense), net

 

(44

)

 

 

(18,565

)

 

 

(76

)

 

 

(58,287

)

Profit (loss) before income taxes

 

(31,512

)

 

 

(20,180

)

 

 

(63,696

)

 

 

(63,217

)

Provision for (benefit from) income taxes

 

1,516

 

 

 

309

 

 

 

2,596

 

 

 

924

 

Net profit (loss)

$

(33,028

)

 

$

(20,489

)

 

$

(66,292

)

 

$

(64,141

)

Other comprehensive profit (loss), net of tax:

 

 

 

 

 

 

 

Other comprehensive profit (loss)

 

(3,669

)

 

 

?

 

 

 

(3,094

)

 

 

?

 

Comprehensive profit (loss)

$

(36,697

)

 

$

(20,489

)

 

$

(69,386

)

 

$

(64,141

)

 

 

 

 

 

 

 

 

Net profit (loss) per share attributable to Class A and B ordinary shareholders, basic and diluted

$

(0.20

)

 

$

(1.41

)

 

$

(0.40

)

 

$

(4.42

)

Weighted-average shares used in computing net profit (loss) per share attributable to Class A and B ordinary shareholders, basic and diluted

 

166,365,844

 

 

 

14,529,433

 

 

 

165,480,508

 

 

 

14,497,481

 

RISKIFIED LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

(unaudited)

 

(unaudited)

Cash flows from operating activities:

 

 

 

 

 

 

 

Net profit (loss)

$

(33,028

)

 

$

(20,489

)

 

$

(66,292

)

 

$

(64,141

)

Adjustments to reconcile net profit (loss) to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

Unrealized loss (gain) on foreign currency

 

(1,520

)

 

 

118

 

 

 

(1,695

)

 

 

17

 

Provision for (benefit from) account receivable allowances

 

(73

)

 

 

(51

)

 

 

(175

)

 

 

78

 

Depreciation and amortization

 

949

 

 

 

628

 

 

 

1,928

 

 

 

1,132

 

Amortization of deferred contract costs

 

1,492

 

 

 

910

 

 

 

2,894

 

 

 

1,738

 

Remeasurement of convertible preferred share warrant liabilities

 

?

 

 

 

13,628

 

 

 

?

 

 

 

37,012

 

Remeasurement of convertible preferred share tranche rights

 

?

 

 

 

5,399

 

 

 

?

 

 

 

21,260

 

Share-based compensation expense

 

18,136

 

 

 

2,577

 

 

 

36,523

 

 

 

5,126

 

Non-cash operating lease right-of-use asset changes

 

1,051

 

 

 

?

 

 

 

2,138

 

 

 

?

 

Changes in accrued interest on short-term deposits

 

(384

)

 

 

?

 

 

 

(655

)

 

 

?

 

Ordinary share warrants issued to a customer

 

383

 

 

 

?

 

 

 

767

 

 

 

?

 

Other

 

102

 

 

 

48

 

 

 

107

 

 

 

32

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

(4,666

)

 

 

(3,540

)

 

 

7,350

 

 

 

11,021

 

Deferred contract acquisition costs

 

(1,675

)

 

 

(1,211

)

 

 

(2,498

)

 

 

(2,245

)

Prepaid expenses and other assets

 

1,966

 

 

 

(1,497

)

 

 

6,935

 

 

 

(6,552

)

Accounts payable

 

598

 

 

 

563

 

 

 

1,607

 

 

 

612

 

Accrued compensation and benefits

 

1,876

 

 

 

3,129

 

 

 

(5,585

)

 

 

334

 

Guarantee obligations

 

636

 

 

 

279

 

 

 

(2,342

)

 

 

(2,534

)

Provision for chargebacks, net

 

328

 

 

 

(1,139

)

 

 

(2,386

)

 

 

(3,595

)

Operating lease liabilities

 

(1,095

)

 

 

?

 

 

 

(2,370

)

 

 

?

 

Accrued expenses and other liabilities

 

2,578

 

 

 

2,068

 

 

 

4,377

 

 

 

5,994

 

Net cash provided by (used in) operating activities

 

(12,346

)

 

 

1,420

 

 

 

(19,372

)

 

 

5,289

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Purchases of short-term deposits

 

(40,211

)

 

 

(25,000

)

 

 

(191,964

)

 

 

(25,000

)

Maturities of short-term deposits

 

?

 

 

 

6,990

 

 

 

85,211

 

 

 

14,006

 

Purchases of property and equipment

 

(434

)

 

 

(706

)

 

 

(2,979

)

 

 

(1,094

)

Capitalized software development costs

 

(545

)

 

 

(198

)

 

 

(972

)

 

 

(490

)

Net cash provided by (used in) investing activities

 

(41,190

)

 

 

(18,914

)

 

 

(110,704

)

 

 

(12,578

)

Cash flows from financing activities:

 

 

 

 

 

 

 

Proceeds from issuance of convertible preferred shares and warrants, net of issuance costs

 

?

 

 

 

26,781

 

 

 

?

 

 

 

26,781

 

Proceeds from exercise of share options

 

1,426

 

 

 

335

 

 

 

2,181

 

 

 

559

 

Payments of deferred offering costs

 

?

 

 

 

(1,210

)

 

 

(190

)

 

 

(2,030

)

Net cash provided by (used in) financing activities

 

1,426

 

 

 

25,906

 

 

 

1,991

 

 

 

25,310

 

Net increase (decrease) in cash, cash equivalents, and restricted cash

 

(52,110

)

 

 

8,412

 

 

 

(128,085

)

 

 

18,021

 

Effects of exchange rates on cash, cash equivalents, and restricted cash

 

(1,348

)

 

 

?

 

 

 

(1,924

)

 

 

?

 

Cash, cash equivalents, and restricted cash?beginning of period

 

348,576

 

 

 

116,266

 

 

 

425,127

 

 

 

106,657

 

Cash, cash equivalents, and restricted cash?end of period

 

295,118

 

 

 

124,678

 

 

 

295,118

 

 

 

124,678

 

Reconciliation of GAAP to Non-GAAP Metrics

The following tables reconcile non-GAAP metrics to the most directly comparable GAAP metric and are presented in thousands except for share and per share amounts.

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

(unaudited)

 

(unaudited)

Net profit (loss)

$

(33,028

)

 

$

(20,489

)

 

$

(66,292

)

 

$

(64,141

)

Provision for (benefit from) income taxes

 

1,516

 

 

 

309

 

 

 

2,596

 

 

 

924

 

Interest (income) expense, net

 

(1,319

)

 

 

(35

)

 

 

(1,993

)

 

 

(69

)

Other (income) expense, net

 

44

 

 

 

18,565

 

 

 

76

 

 

 

58,287

 

Depreciation and amortization

 

949

 

 

 

628

 

 

 

1,928

 

 

 

1,132

 

Share-based compensation expense

 

18,136

 

 

 

2,577

 

 

 

36,523

 

 

 

5,126

 

Payroll taxes related to share-based compensation

 

77

 

 

 

?

 

 

 

90

 

 

 

?

 

Adjusted EBITDA

$

(13,625

)

 

$

1,555

 

 

$

(27,072

)

 

$

1,259

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

(unaudited)

 

(unaudited)

GAAP gross profit

 

30,606

 

 

 

33,302

 

 

 

60,974

 

 

 

61,930

 

Plus: depreciation and amortization

 

173

 

 

 

165

 

 

 

344

 

 

 

276

 

Plus: share-based compensation expense

 

146

 

 

 

37

 

 

 

294

 

 

 

63

 

Plus: payroll taxes related to share-based compensation

 

2

 

 

 

?

 

 

 

2

 

 

 

?

 

Non-GAAP gross profit

$

30,927

 

 

$

33,504

 

 

$

61,614

 

 

$

62,269

 

Gross profit margin

 

51

%

 

 

60

%

 

 

51

%

 

 

58

%

Non-GAAP gross profit margin

 

52

%

 

 

60

%

 

 

52

%

 

 

58

%

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

2021

 

2022

 

2021

 

(unaudited)

 

(unaudited)

GAAP cost of revenue

$

29,326

 

$

22,390

 

$

57,803

 

$

44,845

Less: depreciation and amortization

 

173

 

 

165

 

 

344

 

 

276

Less: share-based compensation expense

 

146

 

 

37

 

 

294

 

 

63

Less: payroll taxes related to share-based compensation

 

2

 

 

?

 

 

2

 

 

?

Non-GAAP cost of revenue

$

29,005

 

$

22,188

 

$

57,163

 

$

44,506

 

 

 

 

 

 

 

 

GAAP research and development

$

17,947

 

$

12,439

 

$

36,060

 

$

24,133

Less: depreciation and amortization

 

359

 

 

197

 

$

733

 

$

352

Less: share-based compensation expense

 

2,451

 

 

1,013

 

$

4,883

 

$

1,838

Non-GAAP research and development

$

15,137

 

$

11,229

 

$

30,444

 

$

21,943

 

 

 

 

 

 

 

 

GAAP sales and marketing

$

22,892

 

$

14,812

 

$

46,021

 

$

27,484

Less: depreciation and amortization

 

238

 

 

158

 

 

486

 

 

306

Less: share-based compensation expense

 

4,881

 

 

872

 

 

10,204

 

 

1,797

Less: payroll taxes related to share-based compensation

 

45

 

 

?

 

 

58

 

 

?

Non-GAAP sales and marketing

$

17,728

 

$

13,782

 

$

35,273

 

$

25,381

 

 

 

 

 

 

 

 

GAAP general and administrative

$

22,554

 

$

7,701

 

$

44,506

 

$

15,312

Less: depreciation and amortization

 

179

 

 

108

 

$

365

 

$

198

Less: share-based compensation expense

 

10,658

 

 

655

 

$

21,142

 

$

1,428

Less: payroll taxes related to share-based compensation

 

30

 

 

?

 

 

30

 

 

?

Non-GAAP general and administrative

$

11,687

 

$

6,938

 

$

22,969

 

$

13,686

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

(unaudited)

 

(unaudited)

Net cash provided by (used in) operating activities

$

(12,346

)

 

$

1,420

 

 

$

(19,372

)

 

$

5,289

 

Purchases of property and equipment

 

(434

)

 

 

(706

)

 

 

(2,979

)

 

 

(1,094

)

Capitalized software development costs

 

(545

)

 

 

(198

)

 

 

(972

)

 

 

(490

)

Free Cash Flow

$

(13,325

)

 

$

516

 

 

$

(23,323

)

 

$

3,705

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

(unaudited)

 

(unaudited)

Net profit (loss)

$

(33,028

)

 

$

(20,489

)

 

$

(66,292

)

 

$

(64,141

)

Remeasurement of convertible preferred share warrant liabilities

 

?

 

 

 

13,628

 

 

 

?

 

 

 

37,012

 

Remeasurement of convertible preferred share tranche rights

 

?

 

 

 

5,399

 

 

 

?

 

 

 

21,260

 

Depreciation and amortization

 

949

 

 

 

628

 

 

 

1,928

 

 

 

1,132

 

Share-based compensation expense

 

18,136

 

 

 

2,577

 

 

 

36,523

 

 

 

5,126

 

Payroll taxes related to share-based compensation

 

77

 

 

 

?

 

 

 

90

 

 

 

?

 

Non-GAAP net profit (loss)

$

(13,866

)

 

$

1,743

 

 

$

(27,751

)

 

$

389

 

 

 

 

 

 

 

 

 

Net profit (loss) per share attributable to Class A and B ordinary shareholders, basic and diluted

$

(0.20

)

 

$

(1.41

)

 

$

(0.40

)

 

$

(4.42

)

Non-GAAP net profit (loss) per share attributable to Class A and B ordinary shareholders, basic

$

(0.08

)

 

$

0.01

 

 

$

(0.17

)

 

$

0.00

 

Non-GAAP net profit (loss) per share attributable to Class A and B ordinary shareholders, diluted

$

(0.08

)

 

$

0.01

 

 

$

(0.17

)

 

$

0.00

 

 

 

 

 

 

 

 

 

Weighted-average shares used in computing net profit (loss) per share attributable to Class A and B ordinary shareholders, basic

 

166,365,844

 

 

 

14,529,433

 

 

 

165,480,508

 

 

 

14,497,481

 

Add: Non-GAAP weighting adjustment for Class A and B ordinary shares issued in connection with IPO

 

?

 

 

 

146,648,106

 

 

 

?

 

 

 

146,648,106

 

Weighted-average shares used in computing non-GAAP net profit (loss) per share attributable to Class A and B ordinary shareholders, basic(1)

 

166,365,844

 

 

 

161,177,539

 

 

 

165,480,508

 

 

 

161,145,587

 

 

 

 

 

 

 

 

 

Weighted-average shares used in computing net profit (loss) per share attributable to Class A and B ordinary shareholders, diluted

 

166,365,844

 

 

 

14,529,433

 

 

 

165,480,508

 

 

 

14,497,481

 

Add: Non-GAAP weighting adjustment for Class A and B ordinary shares issued in connection with IPO

 

?

 

 

 

146,648,106

 

 

 

?

 

 

 

146,648,106

 

Add: Dilutive Class A and B ordinary share equivalents

 

?

 

 

 

6,240,591

 

 

 

?

 

 

 

5,592,318

 

Weighted-average shares used in computing non-GAAP net profit (loss) per share attributable to Class A and B ordinary shareholders, diluted(1)

 

166,365,844

 

 

 

167,418,130

 

 

 

165,480,508

 

 

 

166,737,905

 

(1) Weighted-average shares used in computing non-GAAP net profit (loss) per share reflect the Class A and B ordinary shares issued in connection with the IPO that are outstanding as of the end of the period as if they were outstanding as of the beginning of the earliest period presented for comparability.

 


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