Le Lézard
Classified in: Business
Subjects: EARNINGS, Conference Call, Webcast

Hims & Hers Health, Inc. Reports Fourth Quarter and Full Year 2023 Financial Results


Hims & Hers Health, Inc. ("Hims & Hers" or the "Company") (NYSE: HIMS), the leading health and wellness platform, today announced financial results for the fourth quarter and full year ended December 31, 2023 in a shareholder letter that is posted at investors.hims.com.

"Our outstanding results in 2023 underscore the power of the Hims & Hers brands and superior execution across the organization," said Andrew Dudum, co-founder and CEO. "We are continuing to advance our mission to make the world feel great through the power of better health, which is evident in the significant, consistent and category-leading revenue growth and market share gains we have been delivering. In 2024, we expect to eclipse $1 billion in revenue and deliver our first full year of net income profitability through a continued focus on building personalized and accessible treatments in each of our core specialties. We believe this approach will meaningfully break down barriers that keep individuals from seeking treatment, which will allow us to bring these unique offerings to tens of millions of subscribers over time."

Yemi Okupe, CFO, stated, "The strong momentum our business is currently experiencing is the direct result of a simple but powerful strategy to provide users with access to high quality personalized care that is attractively priced and backed by a delightful experience from beginning to end. Our operational excellence, solid foundation for profitable growth and highly disciplined capital allocation framework position the Company to continue building upon this momentum in 2024 and beyond. Execution across these factors is driving the expected attainment of our 2025 Adjusted EBITDA target one year early and gives us direct line of sight to our 2025 revenue target."

Key Business Metrics

(In Thousands, Except for Monthly Online Revenue per Average Subscriber and AOV, Unaudited)

 

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

 

2023

 

2022

 

% Change

 

2023

 

2022

 

% Change

Subscribers (end of period)

 

 

1,537

 

 

1,040

 

48

%

 

 

1,537

 

 

1,040

 

48

%

Monthly Online Revenue per Average Subscriber

 

$

53

 

 

$

55

 

 

(4

)%

 

$

54

 

 

$

53

 

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Orders

 

 

2,298

 

 

 

1,855

 

 

24

%

 

 

8,676

 

 

 

6,122

 

 

42

%

AOV

 

$

103

 

 

$

87

 

 

18

%

 

$

97

 

 

$

82

 

 

18

%

Revenue

(In Thousands, Unaudited)

 

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

 

2023

 

2022

 

% Change

 

2023

 

2022

 

% Change

Online Revenue

 

$

237,363

 

$

161,162

 

47

%

 

$

842,381

 

$

502,507

 

68

%

Wholesale Revenue

 

 

9,256

 

 

 

6,041

 

 

53

%

 

 

29,619

 

 

 

24,409

 

 

21

%

Total revenue

 

$

246,619

 

 

$

167,203

 

 

47

%

 

$

872,000

 

 

$

526,916

 

 

65

%

Fourth Quarter 2023 Financial Highlights

Full Year 2023 Financial Highlights

Reconciliations of Adjusted EBITDA and Free Cash Flow, non-GAAP measures, to net loss and cash provided by (used in) operating activities, respectively, their most comparable financial measures under generally accepted accounting principles in the United States ("U.S. GAAP"), have been provided in this press release in the accompanying tables. Additional information about Adjusted EBITDA and Free Cash Flow is also included below under the heading "Non-GAAP Financial Measures."

Financial Outlook

Hims & Hers is providing the following guidance:

For the first quarter 2024, we expect:

For the full year 2024, we expect:

The guidance provided above constitutes forward-looking statements and actual results may differ materially. Refer to the "Cautionary Note Regarding Forward-Looking Statements" safe harbor section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

We have relied upon the exception in Item 10(e)(1)(i)(B) of Regulation S-K and have not reconciled forward-looking Adjusted EBITDA to its most directly comparable U.S. GAAP measure, net loss, because we cannot predict with reasonable certainty the ultimate outcome of certain components of such reconciliations, including market-related assumptions that are not within our control, or others that may arise, without unreasonable effort. For these reasons, we are unable to assess the probable significance of the unavailable information, which could materially impact the amount of future net loss. See "Non-GAAP Financial Measures" for additional important information regarding Adjusted EBITDA.

Conference Call

Hims & Hers will host a conference call to review the fourth quarter and full year 2023 results on February 26, 2024, at 5:00 p.m. ET. The conference call can be accessed by dialing +1 (888) 510-2630 for U.S. participants and +1 (646) 960-0137 for international participants, and referencing conference ID #1704296. A live audio webcast will be available online at investors.hims.com. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call at the same link.

About Hims & Hers Health, Inc.

Hims & Hers is the leading health and wellness platform on a mission to help the world feel great through the power of better health.

We believe how you feel in your body and mind transforms how you show up in life. That's why we're building a future where nothing stands in the way of harnessing this power. Hims & Hers normalizes health & wellness challenges?and innovates on their solutions?to make feeling happy and healthy easy to achieve. No two people are the same, so the Company provides access to personalized care designed for results.

For more information, please visit investors.hims.com.

Cautionary Note Regarding Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by the use of forward-looking terminology, including the words "believe," "estimate," "anticipate," "expect," "assume," "imply," "intend," "plan," "may," "will," "potential," "project," "predict," "continue," "could," or "should," or, in each case, their plural, their negative or other variations or comparable terminology. There can be no assurance that actual results will not materially differ from expectations. Such statements include, but are not limited to, any statements relating to our financial outlook and guidance, including our mission to drive top-line growth and profitability and our ability to attain our medium- and long-term financial targets; our expected future financial and business performance, including with respect to the Hims & Hers platform, our marketing campaigns, investments in innovation, and our infrastructure, and the underlying assumptions with respect to the foregoing; statements relating to events and trends relevant to us, including with respect to our financial condition, results of operations, short- and long-term business operations, objectives, and financial needs; expectations regarding our mobile applications, market acceptance, user experience, customer retention, brand development, our ability to invest and generate a return on any such investment, customer acquisition costs, operating efficiencies and leverage (including our fulfillment capabilities), the effect of any pricing decisions, changes in our product or offering mix, the timing and market acceptance of any new products or offerings, the success of our business model, our market opportunity, our ability to scale our business, the growth of certain of our specialties, our ability to innovate on and expand the scope of our offerings and experiences, our ability to reinvest into the customer experience, and our ability to comply with the extensive, complex and evolving regulatory requirements applicable to our business, including without limitation state and federal healthcare, privacy and consumer protection laws and regulations. These statements are based on management's current expectations, but actual results may differ materially due to various factors.

The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments and their potential effects on us. Future developments affecting us may not be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) and other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described in the "Risk Factors" section of each of our most recently filed Quarterly Report on Form 10-Q, our most recently filed Annual Report on Form 10-K, and any of our subsequent filings with the Securities and Exchange Commission (the "Commission").

Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity, and developments in the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements contained in reports we have filed or will file with the Commission, including our most recently filed Annual Report on Form 10-K, our most recently filed Quarterly Report on Form 10-Q, and any of our subsequent filings with the Commission. In addition, even if our results of operations, financial condition and liquidity, and developments in the industry in which we operate are consistent with the forward-looking statements contained in such reports, those results or developments may not be indicative of results or developments in subsequent periods.

Key Business Metrics

"Online Revenue" represents the sales of products and services on our platform, net of refunds, credits, and chargebacks, and includes revenue recognition adjustments recorded pursuant to U.S. GAAP, primarily relating to deferred revenue and returns reserve. Online Revenue is generated by selling directly to consumers through our websites and mobile applications. Our Online Revenue consists of products and services purchased by customers directly through our online platform. The majority of our Online Revenue is subscription-based, where customers agree to be billed on a recurring basis to have products and services automatically delivered to them.

"Wholesale Revenue" represents non-prescription product sales to retailers through wholesale purchasing agreements. Wholesale Revenue also includes non-prescription product sales to third-party platforms through consignment arrangements. In addition to being revenue generative and profitable, wholesale partnerships and consignment arrangements have the added benefit of generating brand awareness with new customers in physical and online environments.

"Subscribers" are customers who have one or more "Subscriptions" pursuant to which they have agreed to be automatically billed on a recurring basis at a defined cadence. The Subscription billing cadence is typically defined as a number of days (for example, billed every 30 days or every 90 days), which are excluded from our reporting when payment has not occurred at the contracted billing cadence. Subscribers can cancel Subscriptions in between billing periods to stop receiving additional products and/or services and can reactivate Subscriptions to continue receiving additional products and/or services.

"Monthly Online Revenue per Average Subscriber" is defined as Online Revenue divided by "Average Subscribers," which amount is then further divided by the number of months in a period. "Average Subscribers" are calculated as the sum of the Subscribers at the beginning and end of a given period divided by 2.

"Net Orders" are defined as the number of online customer orders minus transactions related to refunds, credits, chargebacks, and other negative adjustments. Net Orders represent transactions made on our platform during a defined period of time and exclude revenue recognition adjustments recorded pursuant to U.S. GAAP.

Average Order Value ("AOV") is defined as Online Revenue divided by Net Orders (each as defined above).

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share and Per Share Data, Unaudited)

 

 

December 31,

 

2023

 

2022

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

96,663

 

 

$

46,772

 

Short-term investments

 

124,318

 

 

 

132,853

 

Inventory

 

22,464

 

 

 

21,562

 

Prepaid expenses and other current assets

 

21,608

 

 

 

15,408

 

Total current assets

 

265,053

 

 

 

216,595

 

Restricted cash

 

856

 

 

 

856

 

Goodwill

 

110,881

 

 

 

110,881

 

Property, equipment, and software, net

 

36,143

 

 

 

11,199

 

Intangible assets, net

 

18,574

 

 

 

21,841

 

Operating lease right-of-use assets

 

9,588

 

 

 

4,936

 

Other long-term assets

 

91

 

 

 

33

 

Total assets

$

441,186

 

 

$

366,341

 

Liabilities and stockholders' equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

43,070

 

 

$

32,363

 

Accrued liabilities

 

28,972

 

 

 

12,448

 

Deferred revenue

 

7,733

 

 

 

1,472

 

Earn-out payable

 

7,412

 

 

 

?

 

Operating lease liabilities

 

1,281

 

 

 

1,658

 

Total current liabilities

 

88,468

 

 

 

47,941

 

Operating lease liabilities

 

8,667

 

 

 

3,649

 

Earn-out liabilities

 

?

 

 

 

2,975

 

Other long-term liabilities

 

22

 

 

 

35

 

Total liabilities

 

97,157

 

 

 

54,600

 

Commitments and contingencies

 

 

 

Stockholders' equity:

 

 

 

Common stock ? Class A shares, par value $0.0001, 2,750,000,000 shares authorized and 205,104,120 and 200,051,689 shares issued and outstanding as of December 31, 2023 and 2022, respectively; Class V shares, par value $0.0001, 10,000,000 shares authorized and 8,377,623 shares issued and outstanding as of December 31, 2023 and 2022

 

21

 

 

 

21

 

Additional paid-in capital

 

712,307

 

 

 

656,626

 

Accumulated other comprehensive loss

 

(124

)

 

 

(277

)

Accumulated deficit

 

(368,175

)

 

 

(344,629

)

Total stockholders' equity

 

344,029

 

 

 

311,741

 

Total liabilities and stockholders' equity

$

441,186

 

 

$

366,341

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(In Thousands, Except Share and Per Share Data, Unaudited)

 

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

 

2023

 

2022

 

2023

 

2022

Revenue

 

$

246,619

 

 

$

167,203

 

 

$

872,000

 

 

$

526,916

 

Cost of revenue

 

 

42,561

 

 

 

34,866

 

 

 

157,051

 

 

 

118,194

 

Gross profit

 

 

204,058

 

 

 

132,337

 

 

 

714,949

 

 

 

408,722

 

Gross margin %

 

 

83

%

 

 

79

%

 

 

82

%

 

 

78

%

Operating expenses:(1)

 

 

 

 

 

 

 

 

Marketing

 

 

125,895

 

 

 

85,542

 

 

 

446,435

 

 

 

272,587

 

Operations and support

 

 

32,839

 

 

 

22,521

 

 

 

119,857

 

 

 

77,403

 

Technology and development

 

 

13,405

 

 

 

8,311

 

 

 

48,227

 

 

 

29,237

 

General and administrative

 

 

32,319

 

 

 

27,568

 

 

 

129,883

 

 

 

98,192

 

Total operating expenses

 

 

204,458

 

 

 

143,942

 

 

 

744,402

 

 

 

477,419

 

Loss from operations

 

 

(400

)

 

 

(11,605

)

 

 

(29,453

)

 

 

(68,697

)

Other income (expense):

 

 

 

 

 

 

 

 

Change in fair value of liabilities

 

 

(19

)

 

 

(942

)

 

 

(1,075

)

 

 

70

 

Other income, net

 

 

2,615

 

 

 

1,519

 

 

 

8,957

 

 

 

2,918

 

Total other income, net

 

 

2,596

 

 

 

577

 

 

 

7,882

 

 

 

2,988

 

Income (loss) before income taxes

 

 

2,196

 

 

 

(11,028

)

 

 

(21,571

)

 

 

(65,709

)

(Provision) benefit for income taxes

 

 

(951

)

 

 

121

 

 

 

(1,975

)

 

 

31

 

Net income (loss)

 

 

1,245

 

 

 

(10,907

)

 

 

(23,546

)

 

 

(65,678

)

Other comprehensive income (loss)

 

 

9

 

 

 

185

 

 

 

153

 

 

 

(140

)

Total comprehensive income (loss)

 

$

1,254

 

 

$

(10,722

)

 

$

(23,393

)

 

$

(65,818

)

 

 

 

 

 

 

 

 

 

Net income (loss) per share attributable to common shareholders:

 

 

 

 

 

 

 

 

Basic

 

$

0.01

 

 

$

(0.05

)

 

$

(0.11

)

 

$

(0.32

)

Diluted

 

$

0.01

 

 

$

(0.05

)

 

$

(0.11

)

 

$

(0.32

)

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

211,584,915

 

 

 

206,140,283

 

 

 

209,344,712

 

 

 

204,516,120

 

Diluted

 

 

221,850,856

 

 

 

206,140,283

 

 

 

209,344,712

 

 

 

204,516,120

 

______________

(1) Includes stock-based compensation expense as follows (in thousands):

 

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

 

2023

 

2022

 

2023

 

2022

Marketing

 

$

1,559

 

$

1,512

 

$

5,477

 

$

4,648

Operations and support

 

 

1,920

 

 

 

836

 

 

 

6,815

 

 

 

2,684

 

Technology and development

 

 

1,921

 

 

 

1,328

 

 

 

7,126

 

 

 

4,327

 

General and administrative

 

 

12,391

 

 

 

8,674

 

 

 

46,662

 

 

 

31,158

 

Total stock-based compensation expense

 

$

17,791

 

 

$

12,350

 

 

$

66,080

 

 

$

42,817

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands, Unaudited)

 

 

Year Ended December 31,

 

2023

 

2022

Operating activities

 

 

 

Net loss

$

(23,546

)

 

$

(65,678

)

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

 

 

 

Depreciation and amortization

 

9,515

 

 

 

7,474

 

Stock-based compensation

 

66,080

 

 

 

42,817

 

Change in fair value of liabilities

 

1,075

 

 

 

(70

)

Net (accretion) amortization on securities

 

(5,686

)

 

 

146

 

Benefit for deferred taxes

 

(13

)

 

 

(594

)

Impairment of long-lived assets

 

429

 

 

 

1,127

 

Non-cash operating lease cost

 

1,922

 

 

 

1,605

 

Non-cash acquisition-related costs

 

2,691

 

 

 

837

 

Non-cash other

 

195

 

 

 

?

 

Changes in operating assets and liabilities:

 

 

 

Inventory

 

(902

)

 

 

(8,004

)

Prepaid expenses and other current assets

 

(6,395

)

 

 

(6,335

)

Other long-term assets

 

(58

)

 

 

17

 

Accounts payable

 

7,324

 

 

 

12,723

 

Accrued liabilities

 

16,524

 

 

 

909

 

Deferred revenue

 

6,261

 

 

 

(1,716

)

Operating lease liabilities

 

(1,933

)

 

 

(1,605

)

Earn-out payable

 

?

 

 

 

(10,184

)

Net cash provided by (used in) operating activities

 

73,483

 

 

 

(26,531

)

Investing activities

 

 

 

Purchases of investments

 

(157,239

)

 

 

(187,700

)

Maturities of investments

 

170,051

 

 

 

194,259

 

Proceeds from sales of investments

 

1,574

 

 

 

35,846

 

Investment in website and mobile application development and internal-use software

 

(9,272

)

 

 

(4,533

)

Purchases of property, equipment, and intangible assets

 

(17,220

)

 

 

(2,714

)

Deferred consideration paid for acquisitions

 

?

 

 

 

(459

)

Net cash (used in) provided by investing activities

 

(12,106

)

 

 

34,699

 

Financing activities

 

 

 

Proceeds from exercise of vested stock options

 

2,322

 

 

 

2,246

 

Payments for taxes related to net share settlement of equity awards

 

(14,096

)

 

 

(3,901

)

Payments for earn-out consideration for acquisitions

 

?

 

 

 

(32,650

)

Proceeds from employee stock purchase plan

 

2,298

 

 

 

1,178

 

Repurchases of common stock

 

(1,999

)

 

 

?

 

Net cash used in financing activities

 

(11,475

)

 

 

(33,127

)

Foreign currency effect on cash and cash equivalents

 

(11

)

 

 

(53

)

Increase (decrease) in cash, cash equivalents, and restricted cash

 

49,891

 

 

 

(25,012

)

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

 

47,628

 

 

 

72,640

 

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

$

97,519

 

 

$

47,628

 

Reconciliation of cash, cash equivalents, and restricted cash

 

 

 

Cash and cash equivalents

$

96,663

 

 

$

46,772

 

Restricted cash

 

856

 

 

 

856

 

Total cash, cash equivalents, and restricted cash

$

97,519

 

 

$

47,628

 

Supplemental disclosures of cash flow information

 

 

 

Cash paid for taxes

$

1,109

 

 

$

636

 

Non-cash investing and financing activities

 

 

 

Purchase of property and equipment included in accounts payable

$

3,383

 

 

$

?

 

Right-of-use asset obtained in exchange for lease liability

 

6,270

 

 

 

1,206

 

Vesting of early exercised stock options

 

?

 

 

 

197

 

Non-GAAP Financial Measures

In addition to our financial results determined in accordance with U.S. GAAP, we present Adjusted EBITDA (which is a non-GAAP financial measure), Adjusted EBITDA margin (which is a non-GAAP ratio), and Free Cash Flow (which is a non-GAAP financial measure) each as defined below. We use Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow, when taken together with the corresponding U.S. GAAP financial measures, provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our business, results of operations, or outlook. We consider Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow to be important measures because they help illustrate underlying trends in our business and our historical operating performance on a more consistent basis. We believe that the use of Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow is helpful to our investors as they are used by management in assessing the health of our business, our operating performance, and our liquidity.

However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with U.S. GAAP. In addition, other companies, including companies in our industry, may calculate similarly-titled non-GAAP financial measures or ratios differently or may use other financial measures or ratios to evaluate their performance, all of which could reduce the usefulness of Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow as tools for comparison. Reconciliations are provided below to the most directly comparable financial measures stated in accordance with U.S. GAAP. Investors are encouraged to review our U.S. GAAP financial measures and not to rely on any single financial measure to evaluate our business.

Adjusted EBITDA is a key performance measure that our management uses to assess our operating performance. Because Adjusted EBITDA facilitates internal comparisons of our historical operating performance on a more consistent basis, we use this measure for business planning purposes. "Adjusted EBITDA" is defined as net income (loss) before stock-based compensation, depreciation and amortization, income taxes, acquisition-related costs (which includes consideration paid for employee compensation with vesting requirements incurred directly as a result of acquisitions, inclusive of revaluation of earn-out consideration recorded in general and administrative expenses), change in fair value of liabilities, impairment of long-lived assets, and interest income. "Adjusted EBITDA margin" is defined as Adjusted EBITDA divided by revenue.

Some of the limitations of Adjusted EBITDA include (i) Adjusted EBITDA does not properly reflect capital commitments to be paid in the future, and (ii) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and Adjusted EBITDA does not reflect these capital expenditures. In evaluating Adjusted EBITDA, you should be aware that in the future we will incur expenses similar to the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by these expenses or any unusual or non-recurring items. We compensate for these limitations by providing specific information regarding the U.S. GAAP items excluded from Adjusted EBITDA. When evaluating our performance, you should consider Adjusted EBITDA in addition to, and not as a substitute for, other financial performance measures, including our net loss and other U.S. GAAP results.

Net Income (Loss) to Adjusted EBITDA Reconciliation

(In Thousands, Unaudited)

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

2023

 

2022

 

2023

 

2022

 

 

 

 

 

 

 

 

Revenue

$

246,619

 

 

$

167,203

 

 

$

872,000

 

 

$

526,916

 

 

 

 

 

 

 

 

 

Net income (loss)

 

1,245

 

 

 

(10,907

)

 

 

(23,546

)

 

 

(65,678

)

Stock-based compensation

 

17,791

 

 

 

12,350

 

 

 

66,080

 

 

 

42,817

 

Depreciation and amortization

 

2,658

 

 

 

2,010

 

 

 

9,515

 

 

 

7,474

 

Provision (benefit) for income taxes

 

951

 

 

 

(121

)

 

 

1,975

 

 

 

(31

)

Acquisition-related costs

 

507

 

 

 

1,117

 

 

 

3,016

 

 

 

1,192

 

Change in fair value of liabilities

 

19

 

 

 

942

 

 

 

1,075

 

 

 

(70

)

Impairment of long-lived assets

 

?

 

 

 

?

 

 

 

429

 

 

 

1,127

 

Interest income

 

(2,601

)

 

 

(1,472

)

 

 

(9,029

)

 

 

(2,610

)

Adjusted EBITDA

$

20,570

 

 

$

3,919

 

 

$

49,515

 

 

$

(15,779

)

 

 

 

 

 

 

 

 

Net income (loss) as a % of revenue

 

1

%

 

 

(7

)%

 

 

(3

)%

 

 

(12

)%

Adjusted EBITDA margin

 

8

%

 

 

2

%

 

 

6

%

 

 

(3

)%

Free Cash Flow is a key performance measure that our management uses to assess our liquidity. Because Free Cash Flow facilitates internal comparisons of our historical liquidity on a more consistent basis, we use this measure for business planning purposes. "Free Cash Flow" is defined as net cash provided by (used in) operating activities, less purchases of property, equipment, and intangible assets and investment in website and mobile application development and internal-use software in investing activities.

Some of the limitations of Free Cash Flow include (i) Free Cash Flow does not represent our residual cash flow for discretionary expenditures and our non-discretionary commitments, and (ii) Free Cash Flow includes capital expenditures, the benefits of which may be realized in periods subsequent to those in which the expenditures took place. In evaluating Free Cash Flow, you should be aware that in the future we will have cash outflows similar to the adjustments in this presentation. Our presentation of Free Cash Flow should not be construed as an inference that our future results will be unaffected by these cash outflows or any unusual or non-recurring items. When evaluating our performance, you should consider Free Cash Flow in addition to, and not as a substitute for, other financial performance measures, including our net cash provided by (used in) operating activities and other U.S. GAAP results.

Net Cash Provided By (Used In) Operating Activities to Free Cash Flow Reconciliation

(In Thousands, Unaudited)

 

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

 

2023

 

2022

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

 

$

21,983

 

 

$

(6,719

)

 

$

73,483

 

 

$

(26,531

)

Less: purchases of property, equipment, and intangible assets in investing activities

 

 

(8,631

)

 

 

(1,400

)

 

 

(17,220

)

 

 

(2,714

)

Less: investment in website and mobile application development and internal-use software in investing activities

 

 

(2,567

)

 

 

(1,213

)

 

 

(9,272

)

 

 

(4,533

)

Free Cash Flow

 

$

10,785

 

 

$

(9,332

)

 

$

46,991

 

 

$

(33,778

)

 


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