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

Riskified Outperforms FY'23 Adjusted EBITDA Guidance by 37% and Ends Year with Positive Free Cash Flow


Riskified Ltd. (NYSE: RSKD) (the "Company"), a leader in ecommerce fraud and risk intelligence, today announced financial results for the three and twelve months ended December 31, 2023. The Company will host an investor call to discuss these results today at 8:30 a.m. Eastern Time.

"The fourth quarter marks a significant milestone as we achieved our strongest adjusted EBITDA result in our history. We believe that this is a testament to the strength of our business model and of our ability to execute on our strategic initiatives. I want to thank the entire Riskified team, whose hard work and dedication have been instrumental in realizing these successes. We are excited about the opportunities that lie ahead and remain committed to delivering value to our merchants and shareholders while staying at the forefront of innovation in the industry," said Eido Gal, Co-Founder and Chief Executive Officer of Riskified.

Q4 and Full Year 2023 Business Highlights

Q4 and Full Year 2023 Financial Summary

The following table summarizes our consolidated financial results for the three and twelve months ended December 31, 2023 and 2022, in thousands except where indicated:

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

(unaudited)

 

(unaudited)

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

$

35,209

 

 

$

32,179

 

 

$

123,106

 

 

$

105,570

 

Increase in GMV year over year

 

9

%

 

 

 

 

17

%

 

 

Revenue

$

84,065

 

 

$

79,298

 

 

$

297,610

 

 

$

261,247

 

Increase in revenues year over year

 

6

%

 

 

 

 

14

%

 

 

 

 

 

 

 

 

 

 

Gross profit

$

48,515

 

 

$

41,444

 

 

$

152,519

 

 

$

135,097

 

Gross profit margin

 

58

%

 

 

52

%

 

 

51

%

 

 

52

%

 

 

 

 

 

 

 

 

Operating profit (loss)

$

(6,564

)

 

$

(17,251

)

 

$

(76,849

)

 

$

(109,348

)

Net profit (loss)

$

(3,265

)

 

$

(12,052

)

 

$

(59,035

)

 

$

(104,705

)

 

 

 

 

 

 

 

 

Adjusted EBITDA(1)

$

9,713

 

 

$

(330

)

 

$

(8,490

)

 

$

(37,076

)

Adjusted EBITDA margin(1)

 

12

%

 

 

(0

)%

 

 

(3

)%

 

 

(14

)%

"I am proud of our ability to expand our adjusted EBITDA margin by 1100 bps from the prior period and we expect to see continued margin expansion in 2024 and beyond. We remain committed to driving value for our shareholders by focusing on the operational levers available to us, and by managing the business in a disciplined way," said Aglika Dotcheva, Chief Financial Officer of Riskified.

Financial Outlook:

For the year ending December 31, 2024, we currently expect:

We anticipate positive Adjusted EBITDA in 2024. For the year ending December 31, 2024, we currently expect:

(1) GMV is a key performance indicator while Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures of financial performance. See "Key Performance Indicators and Non-GAAP Measures" for additional information and "Reconciliation of GAAP to Non-GAAP Measures" for a reconciliation to the most directly comparable GAAP measure.

(2) We are not able to provide a reconciliation of Adjusted EBITDA guidance for the fiscal year ending December 31, 2024 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. For example, we are unable to forecast the magnitude of foreign currency transaction gains or losses which are subject to many economic and other factors beyond our control. For the same reasons, we are unable to address the probable significance of the unavailable information, which could have a potentially unpredictable and potentially significant impact on our future GAAP financial results.

Conference Call and Webcast Details

The Company will host a conference call to discuss its financial results today, March 5, 2024 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. A replay of the webcast will also be available for a limited time at ir.riskified.com. The press release with the financial results, as well as the investor presentation materials will be accessible on the Company's Investor Relations website prior to the conference call.

Key Performance Indicators and Non-GAAP Measures

This press release and the accompanying tables contain references to Gross Merchandise Volume ("GMV"), which is a key performance indicator, and to certain non-GAAP measures which include non-GAAP measures of financial performance, including Adjusted EBITDA, Adjusted EBITDA margin, 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, and non-GAAP measures of liquidity, including Free Cash Flow. Management and our Board of Directors use key performance indicators and non-GAAP measures as supplemental measures of performance and liquidity 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. Free Cash Flow 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.

These non-GAAP measures should not be construed as an inference that our future results will be unaffected by unusual or other items. Non-GAAP measures of financial performance have limitations as analytical tools in that these measures do not reflect our cash expenditures, or future requirements for capital expenditures, or contractual commitments; these measures do not reflect changes in, or cash requirements for, our working capital needs; these measures do not reflect our tax expense or the cash requirements to pay our taxes, and assets being depreciated and amortized will often have to be replaced in the future and these measures do not reflect any cash requirements for such replacements. Free Cash Flow is limited because it does not represent the residual cash flow available for discretionary expenditures. Free Cash Flow is not necessarily a measure of our ability to fund our cash needs.

In light of these limitations, management uses these non-GAAP measures to supplement, not replace, our GAAP results. The non-GAAP measures used herein are not necessarily comparable to similarly titled captions of other companies due to different calculation methods. Non-GAAP financial measures should not be considered in isolation, as an alternative to, or superior to information prepared and presented in accordance with GAAP. These measures are frequently used by analysts, investors and other interested parties to evaluate companies in our industry. By providing these non-GAAP measures together with a reconciliation to the most comparable 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 GMV as the gross total dollar value of orders reviewed through our ecommerce risk intelligence platform during the period indicated, including the value of orders that we did not approve.

We define each of our non-GAAP measures of financial performance, as the respective GAAP balances shown in the below tables, adjusted for, as applicable, depreciation and amortization (including amortization of capitalized internal-use software as presented in our statement of cash flows), share-based compensation expense, payroll taxes related to share-based compensation, litigation-related expenses, provision for (benefit from) income taxes, other income (expense) including foreign currency transaction gains and losses and gains and losses on non-designated hedges, and interest income (expense). Adjusted EBITDA margin represents Adjusted EBITDA expressed as a percentage of revenue. Non-GAAP Gross Profit Margin represents Non-GAAP Gross Profit expressed as a percentage of revenue. 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, as GAAP weighted average shares, adjusted to reflect any dilutive ordinary share equivalents resulting from non-GAAP net profit (loss), if applicable.

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

Management believes that by excluding certain items from the associated GAAP measure, these non-GAAP measures are useful in assessing our performance and provide meaningful supplemental information due to the following factors:

Depreciation and amortization: We exclude depreciation and amortization (including amortization of capitalized internal-use software) because we believe that these costs are not core to the performance of our business and the utilization of the underlying assets being depreciated and amortized can change without a corresponding impact on the operating performance of our business. Management believes that excluding depreciation and amortization facilitates comparability with other companies in our industry.

Share-based compensation expense: We exclude share-based compensation expense primarily because it is a non-cash expense that does not directly correlate to the current performance of our business. This is because the expense is calculated based on the grant date fair value of an award which may vary significantly from the current fair market value of the award based on factors outside of our control. Share-based compensation expense is principally aimed at aligning our employees' interests with those of our shareholders and at long-term retention, rather than to address operational performance for any particular period.

Payroll taxes related to share-based compensation: We exclude employer payroll tax expense related to share-based compensation in order to see the full effect that excluding that share-based compensation expense had on our operating results. These expenses are tied to the exercise or vesting of underlying equity awards and the price of our common stock at the time of vesting or exercise, which may vary from period to period independent of the operating performance of our business.

Litigation-related expenses: We exclude costs associated with the legal matter previously disclosed under the caption "Legal Proceedings" in our Form 6-K furnished with the Securities and Exchange Commission ("SEC") on August 15, 2023, because such costs are not reflective of costs associated with our ongoing business and operating results and are viewed as unusual and infrequent.

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

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward looking statements contained in Section 27A of the U.S. Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Exchange Act. All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding our revenue and adjusted EBITDA guidance for fiscal year 2024 and expectations as to future Adjusted EBITDA margin expansion, future growth potential in new verticals and new geographies, anticipated benefits of our share repurchase program, internal modeling assumptions, expectations as to the macroeconomic environment, expectations as to our new merchant pipeline and upsell opportunities, the performance of our products, our management of our cash outflow and leverage, and business plans and strategy are forward looking statements, which reflect our current views with respect to future events and are not a guarantee of future performance. The words "believe," "may," "will," "estimate," "potential," "continue," "anticipate," "intend," "expect," "could," "would," "project," "forecasts," "aims," "plan," "target," and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions.

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 ability to manage our growth effectively; continued use of credit cards and other payment methods that expose merchants to the risk of payment fraud, and other changes in laws and regulations, including card scheme rules, related to the use of these payment methods, and the emergence of new alternative payments products; our history of net losses and ability to achieve profitability; our ability to attract new merchants and retain existing merchants; the impact of macroeconomic conditions on us and on the performance of our merchants; our ability to continue to improve our machine learning models; fluctuations in our CTB Ratio and gross profit margin, including as a result of large-scale merchant fraud attacks or other security incidents; our ability to protect the information of our merchants and consumers; our ability to predict future revenue due to lengthy sales cycles; seasonal fluctuations in revenue; competition; our merchant concentration; the financial condition of our merchants, particularly in challenging macroeconomic environments; our ability to increase the adoption of our products and to develop and introduce new products; our ability to mitigate the risks involved with selling our products to large enterprises; our ability to retain the services of our executive officers, and other key personnel, including our co-founders; our ability to attract and retain highly qualified personnel, including software engineers and data scientists, particularly in Israel; changes to our prices and pricing structure; our exposure to existing and potential future litigation claims; our exposure to fluctuations in currency exchange rates, including recent declines in the value of the Israeli shekel against the US dollar as a result of the ongoing conflict in Israel; our ability to obtain additional capital; our third-party providers of cloud-based infrastructure; our ability to protect our intellectual property rights; technology and infrastructure interruptions or performance problems; the efficiency and accuracy of our machine learning models and access to third-party and merchant data; our ability to comply with evolving data protection, privacy and security laws; the development of regulatory frameworks for machine learning technology and artificial intelligence; our use of open-source software; our ability to enhance and maintain our brand; our ability to execute potential acquisitions, strategic investments, partnerships, or alliances; our ability to successfully establish partnership channels and to integrate with these partners; potential claims related to the violation of the intellectual property rights of third parties; our failure to comply with anti-corruption, trade compliance, and economic sanctions laws and regulations; disruption, instability and volatility in global markets and industries; our ability to enforce non-compete agreements entered into with our employees; our ability to maintain effective systems of disclosure controls and financial reporting; our ability to accurately estimate or judgements relating to our critical accounting policies; our business in China; changes in tax laws or regulations; increasing scrutiny of, and expectations for, environmental, social and governance initiatives; potential future requirements to collect sales or other taxes; potential future changes in the taxation of international business and corporate tax reform; changes in and application of insurance laws or regulations; conditions in Israel that may affect our operations; the impact of the dual class structure of our ordinary shares; risks associated with our share repurchase program, including the risk that the program could increase volatility and fail to enhance shareholder value; our status as a foreign private issuer; and other risk factors set forth in Item 3.D - "Risk Factors" in our Annual Report on Form 20-F for the fiscal year ended December 31, 2023, to be filed with the SEC, 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.

About Riskified

Riskified empowers businesses to grow ecommerce revenues and profit by mitigating risk. An unrivaled network of merchant brands partner with Riskified for guaranteed protection against chargebacks, to fight fraud and policy abuse at scale, and to improve customer retention. Developed and managed by the largest team of ecommerce risk analysts, data scientists, and researchers, Riskified's AI-powered fraud and risk intelligence platform analyzes the individual behind each interaction to provide real-time decisions and robust identity-based insights. Learn more at riskified.com.

 

RISKIFIED LTD.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)

 
 

 

As of
December 31, 2023

 

As of
December 31, 2022

 

 

 

(unaudited)

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

440,838

 

 

$

188,670

 

Restricted cash

 

?

 

 

 

2,347

 

Short-term deposits

 

5,000

 

 

 

287,000

 

Accounts receivable, net

 

46,886

 

 

 

37,547

 

Prepaid expenses and other current assets

 

10,607

 

 

 

14,371

 

Short-term investments

 

28,968

 

 

 

?

 

Total current assets

 

532,299

 

 

 

529,935

 

Property and equipment, net

 

15,639

 

 

 

18,586

 

Operating lease right-of-use assets

 

29,742

 

 

 

35,158

 

Deferred contract acquisition costs

 

15,562

 

 

 

14,383

 

Other assets, noncurrent

 

8,690

 

 

 

8,922

 

Total assets

$

601,932

 

 

$

606,984

 

Liabilities and Shareholders' Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

2,573

 

 

$

2,110

 

Accrued compensation and benefits

 

24,016

 

 

 

24,134

 

Guarantee obligations

 

12,719

 

 

 

12,361

 

Provision for chargebacks, net

 

12,092

 

 

 

11,980

 

Operating lease liabilities, current

 

5,615

 

 

 

6,214

 

Accrued expenses and other current liabilities

 

12,796

 

 

 

15,813

 

Total current liabilities

 

69,811

 

 

 

72,612

 

Operating lease liabilities, noncurrent

 

25,694

 

 

 

31,202

 

Other liabilities, noncurrent

 

14,706

 

 

 

8,734

 

Total liabilities

 

110,211

 

 

 

112,548

 

Shareholders' equity:

 

 

 

Class A ordinary shares, no par value; 900,000,000 shares authorized as of December 31, 2023 and 2022; 128,738,857 and 102,084,746 shares issued and outstanding as of December 31, 2023 and 2022, respectively

 

?

 

 

 

?

 

Class B ordinary shares, no par value; 232,500,000 shares authorized as of December 31, 2023 and 2022; 49,814,864 and 68,945,014 shares issued and outstanding as of December 31, 2023 and 2022, respectively

 

?

 

 

 

?

 

Treasury shares at cost, 3,038,865 and zero ordinary shares as of December 31, 2023 and 2022, respectively

 

(13,155

)

 

 

?

 

Additional paid-in capital

 

916,371

 

 

 

848,609

 

Accumulated other comprehensive profit (loss)

 

74

 

 

 

(1,639

)

Accumulated deficit

 

(411,569

)

 

 

(352,534

)

Total shareholders' equity

 

491,721

 

 

 

494,436

 

Total liabilities and shareholders' equity

$

601,932

 

 

$

606,984

 

 

RISKIFIED LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)

 
 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

(unaudited)

 

(unaudited)

 

 

Revenue

$

84,065

 

 

$

79,298

 

 

$

297,610

 

 

$

261,247

 

Cost of revenue

 

35,550

 

 

 

37,854

 

 

 

145,091

 

 

 

126,150

 

Gross profit

 

48,515

 

 

 

41,444

 

 

 

152,519

 

 

 

135,097

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

 

17,122

 

 

 

18,502

 

 

 

71,577

 

 

 

72,014

 

Sales and marketing

 

21,344

 

 

 

21,391

 

 

 

88,441

 

 

 

88,438

 

General and administrative

 

16,613

 

 

 

18,802

 

 

 

69,350

 

 

 

83,993

 

Total operating expenses

 

55,079

 

 

 

58,695

 

 

 

229,368

 

 

 

244,445

 

Operating profit (loss)

 

(6,564

)

 

 

(17,251

)

 

 

(76,849

)

 

 

(109,348

)

Interest income (expense), net

 

5,994

 

 

 

5,064

 

 

 

22,775

 

 

 

10,180

 

Other income (expense), net

 

(218

)

 

 

1,714

 

 

 

837

 

 

 

505

 

Profit (loss) before income taxes

 

(788

)

 

 

(10,473

)

 

 

(53,237

)

 

 

(98,663

)

Provision for (benefit from) income taxes

 

2,477

 

 

 

1,579

 

 

 

5,798

 

 

 

6,042

 

Net profit (loss)

$

(3,265

)

 

$

(12,052

)

 

$

(59,035

)

 

$

(104,705

)

Other comprehensive profit (loss), net of tax:

 

 

 

 

 

 

 

Other comprehensive profit (loss)

 

3,251

 

 

 

1,158

 

 

 

1,713

 

 

 

(1,815

)

Comprehensive profit (loss)

$

(14

)

 

$

(10,894

)

 

$

(57,322

)

 

$

(106,520

)

 

 

 

 

 

 

 

 

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

$

(0.02

)

 

$

(0.07

)

 

$

(0.33

)

 

$

(0.62

)

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

 

180,172,629

 

 

 

170,734,172

 

 

 

176,773,398

 

 

 

167,667,374

 

 

RISKIFIED LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

 
 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

(unaudited)

 

(unaudited)

 

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net profit (loss)

$

(3,265

)

 

$

(12,052

)

 

$

(59,035

)

 

$

(104,705

)

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

 

 

 

 

 

 

 

Unrealized loss (gain) on foreign currency

 

534

 

 

 

(1,684

)

 

 

(850

)

 

 

(2,875

)

Provision for (benefit from) account receivable allowances

 

22

 

 

 

(32

)

 

 

198

 

 

 

3

 

Depreciation and amortization

 

896

 

 

 

1,040

 

 

 

3,568

 

 

 

3,607

 

Amortization of capitalized internal-use software costs

 

383

 

 

 

296

 

 

 

1,532

 

 

 

667

 

Amortization of deferred contract costs

 

2,613

 

 

 

2,107

 

 

 

9,567

 

 

 

7,135

 

Share-based compensation expense

 

14,925

 

 

 

15,233

 

 

 

62,410

 

 

 

67,467

 

Non-cash right-of-use asset changes

 

1,095

 

 

 

912

 

 

 

4,605

 

 

 

4,211

 

Changes in accrued interest

 

934

 

 

 

(3,639

)

 

 

2,593

 

 

 

(4,613

)

Ordinary share warrants issued to a customer

 

384

 

 

 

384

 

 

 

1,536

 

 

 

1,535

 

Other

 

38

 

 

 

44

 

 

 

161

 

 

 

180

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

(15,873

)

 

 

(6,575

)

 

 

(9,685

)

 

 

(1,715

)

Deferred contract acquisition costs

 

(3,700

)

 

 

(4,699

)

 

 

(8,893

)

 

 

(9,707

)

Prepaid expenses and other assets

 

279

 

 

 

(3,028

)

 

 

(1,618

)

 

 

4,026

 

Accounts payable

 

(29

)

 

 

(220

)

 

 

373

 

 

 

1,931

 

Accrued compensation and benefits

 

4,093

 

 

 

4,113

 

 

 

(199

)

 

 

291

 

Guarantee obligations

 

3,230

 

 

 

2,594

 

 

 

358

 

 

 

249

 

Provision for chargebacks, net

 

1,394

 

 

 

1,269

 

 

 

112

 

 

 

(40

)

Operating lease liabilities

 

(1,086

)

 

 

(1,624

)

 

 

(4,580

)

 

 

(2,609

)

Accrued expenses and other liabilities

 

556

 

 

 

1,463

 

 

 

5,126

 

 

 

8,710

 

Net cash provided by (used in) operating activities

 

7,423

 

 

 

(4,098

)

 

 

7,279

 

 

 

(26,252

)

Cash flows from investing activities:

 

 

 

 

 

 

 

Purchases of short-term deposits

 

?

 

 

 

(127,997

)

 

 

(55,000

)

 

 

(463,750

)

Maturities of short-term deposits

 

10,000

 

 

 

26,750

 

 

 

337,000

 

 

 

261,750

 

Purchases of investments

 

?

 

 

 

?

 

 

 

(29,086

)

 

 

?

 

Purchases of property and equipment

 

(281

)

 

 

(2,713

)

 

 

(1,355

)

 

 

(6,126

)

Capitalized software development costs

 

?

 

 

 

(351

)

 

 

?

 

 

 

(1,886

)

Net cash provided by (used in) investing activities

 

9,719

 

 

 

(104,311

)

 

 

251,559

 

 

 

(210,012

)

Cash flows from financing activities:

 

 

 

 

 

 

 

Proceeds from exercise of share options

 

728

 

 

 

1,050

 

 

 

3,841

 

 

 

4,059

 

Payments of deferred offering costs

 

?

 

 

 

?

 

 

 

?

 

 

 

(204

)

Purchases of treasury shares

 

(13,155

)

 

 

?

 

 

 

(13,155

)

 

 

?

 

Net cash provided by (used in) financing activities

 

(12,427

)

 

 

1,050

 

 

 

(9,314

)

 

 

3,855

 

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

 

650

 

 

 

945

 

 

 

297

 

 

 

(1,701

)

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

 

5,365

 

 

 

(106,414

)

 

 

249,821

 

 

 

(234,110

)

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

 

435,473

 

 

 

297,431

 

 

 

191,017

 

 

 

425,127

 

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

$

440,838

 

 

$

191,017

 

 

$

440,838

 

 

$

191,017

 

 

Reconciliation of GAAP to Non-GAAP Measures

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

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

(unaudited)

 

(unaudited)

Net profit (loss)

$

(3,265

)

 

$

(12,052

)

 

$

(59,035

)

 

$

(104,705

)

Provision for (benefit from) income taxes

 

2,477

 

 

 

1,579

 

 

 

5,798

 

 

 

6,042

 

Interest (income) expense, net

 

(5,994

)

 

 

(5,064

)

 

 

(22,775

)

 

 

(10,180

)

Other (income) expense, net

 

218

 

 

 

(1,714

)

 

 

(837

)

 

 

(505

)

Depreciation and amortization

 

1,279

 

 

 

1,336

 

 

 

5,100

 

 

 

4,274

 

Share-based compensation expense

 

14,925

 

 

 

15,233

 

 

 

62,410

 

 

 

67,467

 

Payroll taxes related to share-based compensation

 

73

 

 

 

40

 

 

 

459

 

 

 

219

 

Litigation-related expenses

 

?

 

 

 

312

 

 

 

390

 

 

 

312

 

Adjusted EBITDA

$

9,713

 

 

$

(330

)

 

$

(8,490

)

 

$

(37,076

)

Adjusted EBITDA Margin

 

12

%

 

 

(0

)%

 

 

(3

)%

 

 

(14

)%

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

(unaudited)

 

(unaudited)

GAAP gross profit

$

48,515

 

 

$

41,444

 

 

$

152,519

 

 

$

135,097

 

Plus: depreciation and amortization

 

427

 

 

 

359

 

 

 

1,726

 

 

 

880

 

Plus: share-based compensation expense

 

196

 

 

 

144

 

 

 

770

 

 

 

621

 

Plus: payroll taxes related to share-based compensation

 

3

 

 

 

?

 

 

 

11

 

 

 

4

 

Non-GAAP gross profit

$

49,141

 

 

$

41,947

 

 

$

155,026

 

 

$

136,602

 

Gross profit margin

 

58

%

 

 

52

%

 

 

51

%

 

 

52

%

Non-GAAP gross profit margin

 

58

%

 

 

53

%

 

 

52

%

 

 

52

%

 
 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2023

 

2022

 

2023

 

2022

 

(unaudited)

 

(unaudited)

GAAP cost of revenue

$

35,550

 

$

37,854

 

$

145,091

 

$

126,150

Less: depreciation and amortization

 

427

 

 

359

 

 

1,726

 

 

880

Less: share-based compensation expense

 

196

 

 

144

 

 

770

 

 

621

Less: payroll taxes related to share-based compensation

 

3

 

 

?

 

 

11

 

 

4

Non-GAAP cost of revenue

$

34,924

 

$

37,351

 

$

142,584

 

$

124,645

 

 

 

 

 

 

 

 

GAAP research and development

$

17,122

 

$

18,502

 

$

71,577

 

$

72,014

Less: depreciation and amortization

 

394

 

 

461

 

 

1,566

 

 

1,581

Less: share-based compensation expense

 

3,060

 

 

2,584

 

 

13,152

 

 

10,005

Less: payroll taxes related to share-based compensation

 

1

 

 

?

 

 

2

 

 

?

Non-GAAP research and development

$

13,667

 

$

15,457

 

$

56,857

 

$

60,428

 

 

 

 

 

 

 

 

GAAP sales and marketing

$

21,344

 

$

21,391

 

$

88,441

 

$

88,438

Less: depreciation and amortization

 

258

 

 

282

 

 

1,025

 

 

1,013

Less: share-based compensation expense

 

4,706

 

 

4,177

 

 

19,420

 

 

18,253

Less: payroll taxes related to share-based compensation

 

40

 

 

19

 

 

248

 

 

118

Non-GAAP sales and marketing

$

16,340

 

$

16,913

 

$

67,748

 

$

69,054

 

 

 

 

 

 

 

 

GAAP general and administrative

$

16,613

 

$

18,802

 

$

69,350

 

$

83,993

Less: depreciation and amortization

 

200

 

 

234

 

 

783

 

 

800

Less: share-based compensation expense

 

6,963

 

 

8,328

 

 

29,068

 

 

38,588

Less: payroll taxes related to share-based compensation

 

29

 

 

21

 

 

198

 

 

97

Less: litigation-related expenses

 

?

 

 

312

 

 

390

 

 

312

Non-GAAP general and administrative

$

9,421

 

$

9,907

 

$

38,911

 

$

44,196

 
 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

(unaudited)

 

(unaudited)

Net cash provided by (used in) operating activities

$

7,423

 

 

$

(4,098

)

 

$

7,279

 

 

$

(26,252

)

Purchases of property and equipment

 

(281

)

 

 

(2,713

)

 

 

(1,355

)

 

 

(6,126

)

Capitalized software development costs

 

?

 

 

 

(351

)

 

 

?

 

 

 

(1,886

)

Free Cash Flow

$

7,142

 

 

$

(7,162

)

 

$

5,924

 

 

$

(34,264

)

 
 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

(unaudited)

 

(unaudited)

Net profit (loss)

$

(3,265

)

 

$

(12,052

)

 

$

(59,035

)

 

$

(104,705

)

Depreciation and amortization

 

1,279

 

 

 

1,336

 

 

 

5,100

 

 

 

4,274

 

Share-based compensation expense

 

14,925

 

 

 

15,233

 

 

 

62,410

 

 

 

67,467

 

Payroll taxes related to share-based compensation

 

73

 

 

 

40

 

 

 

459

 

 

 

219

 

Litigation related expenses

 

?

 

 

 

312

 

 

 

390

 

 

 

312

 

Non-GAAP net profit (loss)

$

13,012

 

 

$

4,869

 

 

$

9,324

 

 

$

(32,433

)

 

 

 

 

 

 

 

 

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

 

180,172,629

 

 

 

170,734,172

 

 

 

176,773,398

 

 

 

167,667,374

 

Add: Dilutive Class A and B ordinary share equivalents

 

5,541,867

 

 

 

8,877,043

 

 

 

7,446,405

 

 

 

?

 

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

 

185,714,496

 

 

 

179,611,215

 

 

 

184,219,803

 

 

 

167,667,374

 

 

 

 

 

 

 

 

 

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

$

(0.02

)

 

$

(0.07

)

 

$

(0.33

)

 

$

(0.62

)

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

$

0.07

 

 

$

0.03

 

 

$

0.05

 

 

$

(0.19

)

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

$

0.07

 

 

$

0.03

 

 

$

0.05

 

 

$

(0.19

)

 


These press releases may also interest you

20 avr 2024
The Centurion at 33 West 56th Street in the heart of New York City is the only luxury condominium building ever designed by Pei and Pei Partnership Architects and is part of Pei's legacy, celebrated this year at the first major retrospective of his...

20 avr 2024
Following the Vardanyan family's urgent appeal to the international community regarding his hunger strike, Ruben Vardanyan was allowed to call his family for the first time, after more than two weeks of incommunicado detention. During the call,...

20 avr 2024
Corby Spirit and Wine Limited ("Corby" or the "Company") today announced that its subsidiary, Ace Beverage Group Inc. ("Ace Beverage Group" or "ABG"), has signed a definitive agreement  to acquire the Nude ready-to-drink ("RTD") brand and certain...

20 avr 2024
The CALIFORNIA ASSOCIATION OF REALTORS® today announced the resignation of CEO John Sebree, who is leaving to pursue other opportunities. Sebree joined C.A.R. two years ago from Missouri REALTORS®. A search committee will be formed and a nationwide...

20 avr 2024
Pomerantz LLP is investigating claims on behalf of investors of Katapult Holdings, Inc. ("Katapult" or the "Company") . Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980....

20 avr 2024
Pomerantz LLP is investigating claims on behalf of investors of Zymeworks Inc. ("Zymeworks" or the "Company") . Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980...



News published on and distributed by: