8-K
0001858257false00018582572022-08-032022-08-03

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 03, 2022

 

 

AvidXchange Holdings, Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware

001-40898

86-3391192

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

1210 AvidXchange Lane

 

Charlotte, North Carolina

 

28206

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 800 560-9305

 

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class

 

Trading
Symbol(s)

 


Name of each exchange on which registered

Common Stock, $0.001 par value per share

 

AVDX

 

The NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 


Item 2.02 Results of Operations and Financial Condition.

On August 3, 2022, AvidXchange Holdings, Inc. issued a press release announcing its financial results for the second quarter ended June 30, 2022. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein in its entirety by reference.


The information in this Item 2.02 (including Exhibit 99.1) is being furnished under Item 2.02 and Item 9.01 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

 

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.

 

Description

 

99.1

 

Press Release issued by AvidXchange Holdings, Inc. dated August 3, 2022

 

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

 

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

AvidXchange Holdings, Inc.

 

 

 

 

Date:

August 3, 2022

By:

/s/ Joel Wilhite

 

 

 

Joel Wilhite
Chief Financial Officer

 


EX-99.1

 

Exhibit 99.1

https://cdn.kscope.io/95156ddcc4579e40eeeb7b63a47bc3ff-img157214268_0.jpg 

AvidXchange Announces Second Quarter 2022 Financial Results

 

--Second quarter 2022 revenue growth of 30.3% – or 22.4% organically – driven by continued broad based demand coupled with solid operational execution

 

--Higher than expected second quarter 2022 revenues, stronger gross margin performance due to on-going payment monetization and cost leverage drive lower-than-expected net loss

 

--Raising full-year 2022 business outlook for a second consecutive period based on stronger financial results

 

Charlotte, N.C. –August 3, 2022 – AvidXchange Holdings, Inc. (Nasdaq: AVDX), a leading provider of accounts payable (AP) automation software and payment solutions for middle market businesses and their suppliers, today announced financial results for the second quarter ended June 30, 2022.

We again delivered solid across-the-board operating and financial results for the second quarter, led by another 20%+ organic revenue growth quarter and lower than expected adjusted EBITDA loss. Our purpose-built value proposition of providing AP and payments automation for middle-market companies has been a boon to our customers during good times and is now proving to be a powerful efficiency lever during uncertain economic times. As companies grow increasingly cautious on adding new headcount or even look to right size their operations, we remain well positioned to advance our buyer customers’ productivity initiatives while helping our supplier customers to optimize their cash flows. We anticipate that this client- and industry-aligned value proposition, with its highly quantifiable benefits, will continue to fuel demand broadly across our large and underpenetrated addressable market. We believe our solid second quarter results and our newly raised guidance for the year further demonstrates the resilience of our value proposition and momentum across our operations,” said Michael Praeger, CEO & Co-Founder of AvidXchange.

 

Second Quarter 2022 Financial Highlights:

Total revenue was $76.6 million, an increase of 30.3% year-over-year, compared with $58.8 million in the second quarter of 2021.
GAAP net loss was $(25.7) million, compared with a GAAP net loss of $(22.0) million in the second quarter of 2021.
Non-GAAP net loss was $(13.7) million, compared with a Non-GAAP net loss of $(14.9) million in the second quarter of 2021.
GAAP gross profit was $42.9 million, or 56.0% of total revenue, compared with $31.2 million, or 53.0% of total revenue, in the second quarter of 2021.
Non-GAAP gross profit was $48.7 million, or 63.7% of total revenue, compared with $35.8 million, or 61.0% of total revenue, in the second quarter of 2021.
Adjusted EBITDA was $(4.7) million compared with $(5.6) million in the second quarter of 2021.

 


 



 

A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables following the financial statements in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Measures and Other Performance Metrics"

Second Quarter 2022 Key Business Metrics and Highlights:

Total transactions processed in the second quarter of 2022 was 17.3 million, an increase of 13.2% from 15.3 million in the second quarter of 2021.
Total payment volume in the second quarter of 2022 was $16.6 billion, an increase of 36.0% from $12.2 billion in the second quarter of 2021.
Transaction yield in the first quarter of 2022 was $4.42, an increase of 15.1% from $3.84 in the second quarter of 2021.

 

Full Year 2022 Financial Outlook

As of August 3, 2022, AvidXchange anticipates its revised Full Year 2022 revenue and adjusted EBITDA to be in the following ranges (in millions):

 

Current

FY 2022 Guidance

Previous

FY 2022 Guidance

 

Revenue

$308.0 - $310.0

$303.0 - $307.0

 

Adjusted EBITDA(1)

$(27.0) - $(29.0)

$(35.0) - $(39.0)

 

 

(1)
A reconciliation of adjusted EBITDA to GAAP net loss on a forward-looking basis is not available without unreasonable efforts due to the high variability, complexity and low visibility with respect to the items excluded from this non-GAAP measure.

 

These statements are forward-looking and actual results may differ materially. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

 

Earnings Teleconference Information

AvidXchange will discuss its second quarter 2022 financial results during a teleconference today, August 3, 2022, at 6:00 PM ET. The call will be broadcast simultaneously via webcast at https://ir.avidxchange.com/. Following the completion of the call, a recorded replay of the webcast will be available on AvidXchange’s website. In addition to the conference call, supplemental information is available on the Investor Relations section of AvidXchange’s website at https://ir.avidxchange.com/.

 

About AvidXchange™

AvidXchange is a leading provider of accounts payable (“AP”) automation software and payment solutions for middle market businesses and their suppliers. AvidXchange’s software-as-a-service-based, end-to-end software and payment platform digitizes and automates the AP workflows for more than 8,000 businesses and


 



 

it has made payments to more than 825,000 supplier customers of its buyers over the past five years. To learn more about how AvidXchange is transforming the way companies pay their bills, visit www.AvidXchange.com

Forward-Looking Statements

This press release may contain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements generally relate to future events or our future financial or operating performance and often contain words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “future,” “likely,” “may,” “should,” “will” and similar words and phrases indicating future results. The information presented in this press release related to our expectations of future performance, including guidance for our revenue and adjusted EBITDA for the full year 2022, statements related to the significance of our strong performance in the second quarter, the sustainability of our momentum across our operations and trend related to organic revenue growth, statements indicating our belief that our value proposition will continue to fuel demand across our addressable markets, and other statements that are not purely statements of historical fact, are forward-looking in nature. These forward-looking statements are made on the basis of management’s current expectations, assumptions, estimates and projections and are subject to significant risks and uncertainties that could cause actual results to differ materially from those anticipated in such forward-looking statements. We therefore cannot guarantee future results, performance or achievements.

 

Factors which could cause actual results or effects to differ materially from those reflected in forward-looking statements include, but are not limited to, the risk factors and other cautionary statements described, from time to time, in AvidXchange’s filings with the Securities and Exchange Commission (“SEC”), including, without limitation, AvidXchange’s Annual Report on Form 10-K and other documents filed with the SEC, which may be obtained on the investor relations section of our website (https://ir.avidxchange.com/) and on the SEC website at www.sec.gov. Any forward-looking statements made by us in this press release are based only on information currently available to us and speak only as of the date they are made, and we assume no obligation to update any of these statements in light of new information, future events or otherwise unless required under the federal securities laws.

Non-GAAP Measures and Other Performance Metrics

To supplement the financial measures presented in our press release and related conference call in accordance with generally accepted accounting principles in the United States (“GAAP”), we also present the following non-GAAP measures of financial performance: Non-GAAP Gross Profit, Adjusted EBITDA, and Non-GAAP Net Loss.

 

A “non-GAAP financial measure” refers to a numerical measure of our historical or future financial performance or financial position that is included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in our financial statements. We provide certain non-GAAP measures as additional information relating to our operating results as a complement to results provided in accordance with GAAP. The non-GAAP financial information presented herein should be considered in conjunction with, and not as a substitute for or superior to, the financial information presented in accordance with GAAP and should not be considered a measure of liquidity. There are significant limitations associated with the use of non-GAAP financial measures. Further, these measures may differ from the non-GAAP information, even where similarly titled, used by other companies and therefore should not be used to compare our performance to that of other companies.

 

We have presented Non-GAAP Gross Profit, Adjusted EBITDA, and Non-GAAP Net Loss in this press release. We define Non-GAAP Gross Profit as revenue less cost of revenue excluding the portion of depreciation and


 



 

amortization and stock-based compensation expense allocated to cost of revenues. We define Adjusted EBITDA as our net loss before depreciation and amortization, impairment and write-off of intangible assets, interest income and expense, income tax expense, stock-based compensation expense, transaction and acquisition-related costs expensed, change in fair value of derivative instrument, non-recurring items not indicative of ongoing operations, and charitable contributions of common stock. We define Non-GAAP Net Loss as net loss before amortization of acquired intangible assets, impairment and write-off of intangible assets, stock-based compensation expense, transaction and acquisition-related costs expensed, change in fair value of derivative instrument, non-recurring items not indicative of ongoing operations, provision for income taxes and charitable contributions of common stock.

 

We believe the use of non-GAAP financial measures, as a supplement to GAAP measures, is useful to investors in that they eliminate items that are either not part of our core operations or do not require a cash outlay, such as stock-based compensation expense. Management uses these non-GAAP financial measures when evaluating operating performance and for internal planning and forecasting purposes. We believe that these non-GAAP financial measures help indicate underlying trends in the business, are important in comparing current results with prior period results, and are useful to investors and financial analysts in assessing operating performance.

 

Investor Contact:

 

Subhaash Kumar

Skumar1@avidxchange.com

813.760.2309

 

 

 

 


 



 

AvidXchange Holdings, Inc.

Unaudited 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

 

Revenues

 

$

76,561

 

 

$

58,754

 

 

$

147,764

 

 

$

113,968

 

Cost of revenues (exclusive of depreciation and amortization expense)

 

 

28,979

 

 

 

23,011

 

 

 

56,786

 

 

 

45,551

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

20,448

 

 

 

14,547

 

 

 

37,687

 

 

 

28,058

 

Research and development

 

 

20,107

 

 

 

13,620

 

 

 

40,179

 

 

 

27,553

 

General and administrative

 

 

19,974

 

 

 

15,770

 

 

 

38,662

 

 

 

29,934

 

Impairment and write-off of intangible assets

 

 

-

 

 

 

574

 

 

 

-

 

 

 

574

 

Depreciation and amortization

 

 

8,301

 

 

 

7,093

 

 

 

16,019

 

 

 

14,170

 

Total operating expenses

 

 

68,830

 

 

 

51,604

 

 

 

132,547

 

 

 

100,289

 

Loss from operations

 

 

(21,248

)

 

 

(15,861

)

 

 

(41,569

)

 

 

(31,872

)

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

655

 

 

 

165

 

 

 

875

 

 

 

297

 

Interest expense

 

 

(5,075

)

 

 

(5,086

)

 

 

(10,052

)

 

 

(10,111

)

Change in fair value of derivative instrument

 

 

-

 

 

 

(1,084

)

 

 

-

 

 

 

(138

)

Charge for amending financing advisory engagement letter - related party

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(50,000

)

Other expenses

 

 

(4,420

)

 

 

(6,005

)

 

 

(9,177

)

 

 

(59,952

)

Loss before income taxes

 

 

(25,668

)

 

 

(21,866

)

 

 

(50,746

)

 

 

(91,824

)

Income tax expense

 

 

69

 

 

 

133

 

 

 

138

 

 

 

201

 

Net loss

 

$

(25,737

)

 

$

(21,999

)

 

$

(50,884

)

 

$

(92,025

)

Accretion of convertible preferred stock

 

 

-

 

 

 

(4,802

)

 

 

-

 

 

 

(9,404

)

Net loss attributable to common stockholders

 

$

(25,737

)

 

$

(26,801

)

 

$

(50,884

)

 

$

(101,429

)

Net loss per share attributable to common stockholders, basic and diluted

 

$

(0.13

)

 

$

(0.49

)

 

$

(0.26

)

 

$

(1.90

)

Weighted average number of common shares used to compute net loss per share attributable to common stockholders, basic and diluted

 

 

197,864,993

 

 

 

54,562,145

 

 

 

197,443,615

 

 

 

53,317,276

 

 


 



 

AvidXchange Holdings, Inc.

Unaudited Consolidated Balance Sheets

(in thousands, except share and per share data)

 

 

As of June 30,

 

 

As of December 31,

 

 

 

2022

 

 

2021

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

363,314

 

 

$

562,817

 

Restricted funds held for customers

 

 

1,023,902

 

 

 

1,242,346

 

Marketable securities

 

 

147,750

 

 

 

-

 

Accounts receivable, net of allowances of $2,347 and $2,283, respectively

 

 

36,021

 

 

 

30,965

 

Supplier advances receivable, net of allowances of $1,357 and $1,105, respectively

 

 

14,496

 

 

 

11,520

 

Prepaid expenses and other current assets

 

 

13,029

 

 

 

10,237

 

Total current assets

 

 

1,598,512

 

 

 

1,857,885

 

Property and equipment, net

 

 

105,998

 

 

 

106,227

 

Operating lease right-of-use assets

 

 

5,564

 

 

 

3,278

 

Deferred customer origination costs, net

 

 

27,486

 

 

 

28,276

 

Goodwill

 

 

165,921

 

 

 

165,921

 

Intangible assets, net

 

 

104,135

 

 

 

100,455

 

Other noncurrent assets and deposits

 

 

4,667

 

 

 

4,261

 

Total assets

 

$

2,012,283

 

 

$

2,266,303

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

14,361

 

 

$

17,142

 

Accrued expenses

 

 

56,569

 

 

 

56,082

 

Payment service obligations

 

 

1,023,902

 

 

 

1,242,346

 

Deferred revenue

 

 

10,565

 

 

 

9,530

 

Current portion of contingent consideration

 

 

-

 

 

 

688

 

Current maturities of lease obligations under finance leases

 

 

597

 

 

 

670

 

Current maturities of lease obligations under operating leases

 

 

1,304

 

 

 

1,048

 

Current maturities of long-term debt

 

 

4,800

 

 

 

4,800

 

Total current liabilities

 

 

1,112,098

 

 

 

1,332,306

 

Long-term liabilities

 

 

 

 

 

 

 

 

Deferred revenue, less current

 

 

18,702

 

 

 

20,350

 

Contingent consideration, less current portion

 

 

70

 

 

 

70

 

Obligations under finance leases, less current maturities

 

 

61,710

 

 

 

61,172

 

Obligations under operating leases, less current maturities

 

 

5,370

 

 

 

3,448

 

Long-term debt

 

 

122,879

 

 

 

119,880

 

Other long-term liabilities

 

 

2,863

 

 

 

6,022

 

Total liabilities

 

 

1,323,692

 

 

 

1,543,248

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value; 50,000,000 shares authorized, no shares issued and outstanding as of June 30, 2022 and December 31, 2021

 

 

-

 

 

 

-

 

Common stock, $0.001 par value; 1,600,000,000 shares authorized as of June 30, 2022 and December 31, 2021; 198,077,889 and 196,804,844 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively

 

 

198

 

 

 

197

 

Additional paid-in capital

 

 

1,611,828

 

 

 

1,594,780

 

Accumulated deficit

 

 

(923,435

)

 

 

(871,922

)

Total stockholders' equity

 

 

688,591

 

 

 

723,055

 

Total liabilities and stockholders' equity

 

$

2,012,283

 

 

$

2,266,303

 

 

 

 


 



 

AvidXchange Holdings, Inc.

Unaudited Consolidated Statements of Cash Flows

(in thousands)

 

Six Months Ended June 30,

 

 

2022

 

 

2021

 

Cash flows from operating activities

 

 

 

 

 

 

 

Net loss

$

(50,884

)

 

$

(92,025

)

Adjustments to reconcile net loss to net cash used by operating activities

 

 

 

 

 

 

 

Depreciation and amortization expense

 

16,019

 

 

 

14,170

 

Amortization of deferred financing costs

 

679

 

 

 

679

 

Provision for doubtful accounts

 

2,318

 

 

 

251

 

Stock-based compensation

 

15,049

 

 

 

1,952

 

Accrued interest

 

1,184

 

 

 

548

 

Loss on fixed asset disposal

 

26

 

 

 

-

 

Noncash expense on contract modification - related party

 

-

 

 

 

50,000

 

Impairment and write-off on intangible and right-of-use-assets

 

-

 

 

 

574

 

Amortization of investments held to maturity

 

(494

)

 

 

-

 

Fair value adjustment to derivative instrument

 

-

 

 

 

138

 

Deferred income taxes

 

108

 

 

 

108

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

Accounts receivable

 

(5,555

)

 

 

(1,782

)

Prepaid expenses and other current assets

 

(2,791

)

 

 

(1,400

)

Other noncurrent assets

 

(453

)

 

 

(2,489

)

Deferred customer origination costs

 

791

 

 

 

(1,288

)

Accounts payable

 

(2,041

)

 

 

(9,465

)

Deferred revenue

 

(613

)

 

 

664

 

Accrued expenses and other liabilities

 

(3,975

)

 

 

(1,325

)

Operating lease liabilities

 

(107

)

 

 

(403

)

Total adjustments

 

20,145

 

 

 

50,932

 

Net cash used in operating activities

 

(30,739

)

 

 

(41,093

)

Cash flows from investing activities

 

 

 

 

 

 

 

Purchase of short-term investments held to maturity

 

(254,026

)

 

 

-

 

Proceeds from maturity of short-term investments held to maturity

 

106,770

 

 

 

-

 

Purchases of equipment

 

(2,470

)

 

 

(344

)

Purchases of real estate

 

(767

)

 

 

-

 

Purchases of intangible assets

 

(16,100

)

 

 

(8,078

)

Supplier advances, net

 

(4,796

)

 

 

(1,710

)

Net cash used in investing activities

 

(171,389

)

 

 

(10,132

)

Cash flows from financing activities

 

 

 

 

 

 

 

Proceeds from the issuance of long-term debt

 

2,367

 

 

 

1,131

 

Principal payments on finance leases

 

(425

)

 

 

(589

)

Proceeds from issuance of common stock

 

425

 

 

 

1,163

 

Proceeds from issuance of common stock under Employee Stock Purchase Plan

 

602

 

 

 

-

 

Payment of contingent consideration at acquisition date fair value

 

(344

)

 

 

-

 

Payment service obligations

 

(218,444

)

 

 

543,201

 

Net cash (used in) provided by financing activities

 

(215,819

)

 

 

544,906

 

Net (decrease) increase in cash, cash equivalents, and restricted funds held for customers

 

(417,947

)

 

 

493,681

 

Cash, cash equivalents, and restricted funds held for customers

 

 

 

 

 

 

 

Cash, cash equivalents, and restricted funds held for customers, beginning of year

 

1,805,163

 

 

 

390,078

 

Cash, cash equivalents, and restricted funds held for customers, end of period

$

1,387,216

 

 

$

883,759

 

Supplementary information of noncash investing and financing activities

 

 

 

 

 

 

 

Right-of-use assets obtained in exchange for new finance lease obligations

$

499

 

 

$

174

 

Right-of-use assets obtained in exchange for new operating lease obligations

 

2,831

 

 

 

316

 

Common stock issued as contingent consideration

 

344

 

 

 

-

 

Property and equipment purchases in accounts payable and accrued expenses

 

29

 

 

 

7

 

Interest paid on notes payable

 

5,305

 

 

 

5,199

 

Interest paid on finance leases

 

2,863

 

 

 

3,685

 

Options issued in connection with bonus compensation

 

-

 

 

 

48

 

 


 



 

 


 



 

AvidXchange Holdings, Inc.

Unaudited Reconciliation of GAAP to Non-GAAP Measures

(in thousands)


 



 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Reconciliation from Revenue to Non-GAAP Gross Profit and Non-GAAP Gross Margin:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

$

76,561

 

 

$

58,754

 

 

$

147,764

 

 

$

113,968

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Cost of revenues (exclusive of depreciation and amortization expense)

 

(28,979

)

 

 

(23,011

)

 

 

(56,786

)

 

 

(45,551

)

  Depreciation and amortization expense

 

(4,700

)

 

 

(4,579

)

 

 

(9,006

)

 

 

(9,103

)

GAAP Gross profit

$

42,882

 

 

$

31,164

 

 

$

81,972

 

 

$

59,314

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Stock-based compensation expense

 

1,161

 

 

 

84

 

 

 

2,120

 

 

 

140

 

  Depreciation and amortization expense

 

4,700

 

 

 

4,579

 

 

 

9,006

 

 

 

9,103

 

Non-GAAP gross profit

$

48,743

 

 

$

35,827

 

 

$

93,098

 

 

$

68,557

 

GAAP Gross margin

 

56.0

%

 

 

53.0

%

 

 

55.5

%

 

 

52.0

%

Non-GAAP gross margin

 

63.7

%

 

 

61.0

%

 

 

63.0

%

 

 

60.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Net Loss to Non-GAAP Net Loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

$

(25,737

)

 

$

(21,999

)

 

$

(50,884

)

 

$

(92,025

)

Amortization of acquired intangible assets

 

3,736

 

 

 

2,752

 

 

 

7,329

 

 

 

5,505

 

Impairment and write-off of intangible assets

 

-

 

 

 

574

 

 

 

-

 

 

 

574

 

Provision for income taxes

 

69

 

 

 

133

 

 

 

138

 

 

 

201

 

Stock-based compensation expense

 

8,258

 

 

 

1,105

 

 

 

15,049

 

 

 

1,952

 

Transaction and acquisition-related costs

 

73

 

 

 

1,436

 

 

 

277

 

 

 

3,046

 

Change in fair value of derivative instrument

 

-

 

 

 

1,084

 

 

 

-

 

 

 

138

 

Non-recurring items not indicative of ongoing operations

 

(65

)

 

 

25

 

 

 

(57

)

 

 

50,050

 

Total net adjustments

 

12,071

 

 

 

7,109

 

 

 

22,736

 

 

 

61,466

 

Non-GAAP net loss

$

(13,666

)

 

$

(14,890

)

 

$

(28,148

)

 

$

(30,559

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Net Loss to Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

$

(25,737

)

 

$

(21,999

)

 

$

(50,884

)

 

$

(92,025

)

Depreciation and amortization

 

8,301

 

 

 

7,093

 

 

 

16,019

 

 

 

14,170

 

Impairment and write-off of intangible assets

 

-

 

 

 

574

 

 

 

-

 

 

 

574

 

Interest income

 

(655

)

 

 

(165

)

 

 

(875

)

 

 

(297

)

Interest expense

 

5,075

 

 

 

5,086

 

 

 

10,052

 

 

 

10,111

 

Provision for income taxes

 

69

 

 

 

133

 

 

 

138

 

 

 

201

 

Stock-based compensation expense

 

8,258

 

 

 

1,105

 

 

 

15,049

 

 

 

1,952

 

Transaction and acquisition-related costs

 

73

 

 

 

1,436

 

 

 

277

 

 

 

3,046

 

Change in fair value of derivative instrument

 

-

 

 

 

1,084

 

 

 

-