Qualtrics Announces Fourth Quarter and Full Year 2022 Financial Results
- Full Year 2022 total revenue of
$1,458.6M , up 36% year over year - Q4 2022 total revenue of
$389.1M , up 23% year over year - Full Year 2022 subscription revenue of
$1,223.7M , up 41% year over year - Q4 2022 subscription revenue of
$327.6M , up 26% year over year - Total remaining performance obligations1 of
$2,174.6M , up 25% year over year - Next 12 months remaining performance obligations of
$1,202.3M , up 19% year over year
"
Fourth Quarter 2022 Financial Highlights:
- Revenue: Total revenue for the fourth quarter was
$389.1 million , up from$316.0 million one year ago, an increase of 23% year over year. Subscription revenue for the fourth quarter was$327.6 million , up from$259.0 million one year ago, an increase of 26% year over year. - Operating Income (Loss) and Margin: Fourth quarter operating loss was
$(246.6) million , compared to$(306.1) million one year ago. Non-GAAP operating income for the fourth quarter (see discussion of non-GAAP operating income and margin measures below) was$23.9 million , compared to non-GAAP operating income of$0.3 million one year ago. For the fourth quarter, GAAP operating margin was (63)% and non-GAAP operating margin was 6.1%, compared to GAAP operating margin of (97)% and non-GAAP operating margin of 0.1% one year ago. - Net Income (Loss) and Net Income (Loss) Per Share: Fourth quarter net loss was
$(256.4) million , or$(0.43) per share, compared to$(309.8) million , or$(0.56) per share in the fourth quarter of fiscal year 2021. Non-GAAP net income (see discussion of the non-GAAP net income (loss) measure below) for the fourth quarter was$16.0 million , or$0.03 per share, compared to non-GAAP net loss of$(39.4) million , or$(0.07) per share in the fourth quarter of fiscal year 2021. - Cash and Cash Equivalents: Total cash and cash equivalents as of
December 31, 2022 and 2021 were$719.9 million and$1,014.5 million , respectively.
Full Year 2022 Financial Highlights:
- Revenue: Total revenue for the fiscal year ended
December 31, 2022 was$1,458.6 million , up from$1,075.7 million one year ago, an increase of 36% year over year. Subscription revenue was$1,223.7 million , up from$870.7 million one year ago, an increase of 41% year over year. - Operating Income (Loss) and Margin: Operating loss for the year was
$(1,049.0) million , compared to operating loss of$(1,053.8) million in 2021. Non-GAAP operating income for the year was$57.8 million , compared to$31.9 million in fiscal year 2021. For the fiscal year 2022, GAAP operating margin was (72)% and non-GAAP operating margin was 4%, compared to GAAP operating margin of (98)% and non-GAAP operating margin of 3% one year ago. - Net Income (Loss) and Net Income (Loss) Per Share: Fiscal year 2022 net loss was
$(1,061.5) million , or$(1.82) per share, compared to$(1,059.1) million in fiscal year 2021, or$(2.05) per share. Non-GAAP net income for the year was$25.0 million , or$0.04 per share, compared to non-GAAP net loss of$(6.0) million in fiscal year 2021, or$(0.01) per share.
Financial Outlook:
- Total revenue between
$392 and$394 million . - Subscription revenue between
$333 and$335 million . - Non-GAAP operating margin between 4% and 5%.
- Non-GAAP net income per share between
$0.01 and$0.02 assuming 605 million weighted shares outstanding.
- Total revenue between
$1,661 and$1,669 million . - Subscription revenue between
$1,406 and$1,414 million . - Non-GAAP operating margin between 10% and 11%.
- Non-GAAP net income per share between
$0.20 and$0.24 assuming 625 million weighted shares outstanding.
The guidance provided above constitutes forward-looking statements and actual results may differ materially. Refer to the “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.
Non-GAAP operating income, non-GAAP operating margin, non-GAAP net income (loss), and non-GAAP net income (loss) per share are non-GAAP financial measures. Additional information on
A supplemental financial presentation and other information can be accessed through Qualtrics’ investor relations website at https://www.qualtrics.com/investors/.
1 Remaining performance obligations represent all contracted future revenue that has not yet been recognized, including both deferred revenue and non-cancelable contracted amounts that will be invoiced and recognized as revenue in future periods.
Qualtrics Earnings Call
About
Forward-Looking Statements
This press release contains express and implied “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our financial outlook for the first quarter of 2023 and full year 2023. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “project,” “will,” “would,” “should,” “could,” “can,” “predict,” “potential,” “target,” “explore,” “continue,” or the negative of these terms, and similar expressions intended to identify forward-looking statements. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance, or achievement to differ materially and adversely from those anticipated or implied in the statements, including: our future financial performance, including our revenue, cost of revenue, gross profit, operating expenses, ability to generate positive cash flow, and ability to be profitable; our ability to grow at or near historical growth rates; anticipated technology trends, such as the use of and demand for experience management software; our ability to attract and retain customers to use our products; our ability to address and overcome challenges related to the current economic downturn; our ability to attract enterprises and international organizations as customers for our products; our ability to expand our network with content consulting partners, delivery partners, and technology partners; the evolution of technology affecting our products and markets; our ability to introduce new products and enhance existing products and to compete effectively with competitors; our ability to successfully enter into new markets and manage our international expansion; the attraction and retention of qualified employees and key personnel; our ability to effectively manage our growth and future expenses and maintain our corporate culture; our ability to realize cost savings and achieve other benefits related to our restructuring efforts; our anticipated investments in sales and marketing and research and development; our ability to maintain, protect, and enhance our intellectual property rights; our ability to successfully defend litigation brought against us; our ability to maintain data privacy and data security; the sufficiency of our cash and cash equivalents to meet our liquidity needs; our ability to comply with modified or new laws and regulations applying to our business; the impact of geopolitical events, including the ongoing conflict between
Non-GAAP Financial Measures
To supplement our financial results, which are prepared and presented in accordance with US GAAP (“GAAP”), we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different than similarly-titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects, and allow for greater transparency with respect to important metrics used by our management for financial and operational decision-making. We are presenting these non-GAAP measures to assist investors in seeing our financial performance using a management view, and because we believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry. You should consider non-GAAP results alongside other financial performance measures and results presented in accordance with GAAP. In addition, in evaluating non-GAAP results, you should be aware that in the future we will incur expenses such as those that are the subject of adjustments in deriving non-GAAP results and you should not infer from our non-GAAP results that our future results will not be affected by these expenses or any unusual or non-recurring items.
Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per share, free cash flow, free cash flow margin: We define these non-GAAP financial measures as the respective GAAP measures, excluding equity and cash settled stock-based compensation expenses, including employer payroll tax on employee stock transactions, amortization of acquired intangible assets, acquisition related costs, changes in the fair value of our distribution liability for our tax sharing agreement with SAP, and the tax impact of the non-GAAP adjustments, as applicable.
We revised our non-GAAP definitions during 2022 to exclude employer payroll taxes on employee stock transactions. The amount of employer payroll tax on employee stock transactions is dependent on our stock price and other factors that are beyond our control and do not correlate with the core operation of our business. Going forward, we expect these expenses to increase relative to prior periods as a result of the vesting of restricted stock units (RSUs), and we believe it is useful to exclude these expenses in order to help investors better understand the long-term performance of our core business. The revisions to these definitions had no material impact on our reported non-GAAP financial measures for periods prior to 2022.
When evaluating the performance of our business and making operating plans, we do not consider the items excluded from our non-GAAP definitions (for example, when considering the impact of equity award grants, we place a greater emphasis on overall stockholder dilution rather than the accounting charges associated with such grants). We believe it is useful to exclude these items in order to better understand the long-term performance of our core business and to facilitate comparison of our results to those of peer companies and over multiple periods.
|
Consolidated Balance Sheets (Unaudited, in thousands, except share and par value) |
|||||||
|
|
As of |
||||||
|
|
2022 |
|
2021 |
||||
|
Assets |
|
|
|
||||
|
Current assets: |
|
|
|
||||
|
Cash and cash equivalents |
$ |
719,892 |
|
|
$ |
1,014,511 |
|
|
Accounts receivable, net of allowances |
|
537,037 |
|
|
|
461,830 |
|
|
Deferred contract acquisition costs, net |
|
81,130 |
|
|
|
60,455 |
|
|
Prepaid expenses and other current assets |
|
68,224 |
|
|
|
68,887 |
|
|
Total current assets |
|
1,406,283 |
|
|
|
1,605,683 |
|
|
Non-current assets: |
|
|
|
||||
|
Property and equipment, net |
|
215,645 |
|
|
|
192,327 |
|
|
Right-of-use assets from operating leases |
|
216,514 |
|
|
|
227,320 |
|
|
|
|
1,117,915 |
|
|
|
1,118,768 |
|
|
Other intangible assets, net |
|
210,415 |
|
|
|
264,500 |
|
|
Deferred contract acquisition costs, net of current portion |
|
183,741 |
|
|
|
145,952 |
|
|
Deferred tax assets |
|
9,625 |
|
|
|
96 |
|
|
Other assets |
|
35,713 |
|
|
|
27,577 |
|
|
Total assets |
$ |
3,395,851 |
|
|
$ |
3,582,223 |
|
|
|
|
|
|
||||
|
Liabilities and equity |
|
|
|
||||
|
Current liabilities: |
|
|
|
||||
|
Lease liabilities |
$ |
17,081 |
|
|
$ |
18,898 |
|
|
Accounts payable |
|
142,293 |
|
|
|
84,053 |
|
|
Accrued liabilities |
|
155,291 |
|
|
|
167,402 |
|
|
Liability-classified, stock-based awards |
|
1,053 |
|
|
|
4,519 |
|
|
Deferred revenue |
|
858,186 |
|
|
|
748,145 |
|
|
Total current liabilities |
|
1,173,904 |
|
|
|
1,023,017 |
|
|
Non-current liabilities: |
|
|
|
||||
|
Lease liabilities, net of current portion |
|
261,097 |
|
|
|
263,307 |
|
|
Deferred revenue, net of current portion |
|
16,717 |
|
|
|
6,698 |
|
|
Deferred tax liabilities |
|
12,447 |
|
|
|
23,653 |
|
|
Other liabilities |
|
27,666 |
|
|
|
78,848 |
|
|
Total liabilities |
$ |
1,491,831 |
|
|
$ |
1,395,523 |
|
|
Commitments and contingencies |
|
|
|
||||
|
Equity |
|
|
|
||||
|
Preferred stock, par value |
|
— |
|
|
|
— |
|
|
Class A common stock, par value |
|
17 |
|
|
|
15 |
|
|
Class B common stock, par value |
|
42 |
|
|
|
42 |
|
|
Additional paid-in capital |
|
5,428,297 |
|
|
|
4,645,800 |
|
|
Accumulated other comprehensive loss |
|
(4,945 |
) |
|
|
(1,244 |
) |
|
Accumulated deficit |
|
(3,519,391 |
) |
|
|
(2,457,913 |
) |
|
Total equity |
|
1,904,020 |
|
|
|
2,186,700 |
|
|
Total liabilities and equity |
$ |
3,395,851 |
|
|
$ |
3,582,223 |
|
|
Consolidated Statements of Operations (Unaudited, in thousands, except share and per share data) |
|||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
|
Revenue: |
|
|
|
|
|
|
|
||||||||
|
Subscription |
$ |
327,574 |
|
|
$ |
258,957 |
|
|
$ |
1,223,725 |
|
|
$ |
870,705 |
|
|
Professional services and other |
|
61,511 |
|
|
|
57,085 |
|
|
|
234,903 |
|
|
|
204,959 |
|
|
Total revenue |
|
389,085 |
|
|
|
316,042 |
|
|
|
1,458,628 |
|
|
|
1,075,664 |
|
|
Cost of revenue: |
|
|
|
|
|
|
|
||||||||
|
Subscription |
|
53,417 |
|
|
|
39,971 |
|
|
|
196,871 |
|
|
|
105,836 |
|
|
Professional services and other |
|
61,154 |
|
|
|
51,914 |
|
|
|
233,079 |
|
|
|
179,436 |
|
|
Total cost of revenue |
|
114,571 |
|
|
|
91,885 |
|
|
|
429,950 |
|
|
|
285,272 |
|
|
Gross profit |
|
274,514 |
|
|
|
224,157 |
|
|
|
1,028,678 |
|
|
|
790,392 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
|
Research and development |
|
106,691 |
|
|
|
97,606 |
|
|
|
427,179 |
|
|
|
324,158 |
|
|
Sales and marketing |
|
228,924 |
|
|
|
193,887 |
|
|
|
892,022 |
|
|
|
643,333 |
|
|
General and administrative |
|
185,498 |
|
|
|
238,790 |
|
|
|
758,452 |
|
|
|
876,734 |
|
|
Total operating expenses |
|
521,113 |
|
|
|
530,283 |
|
|
|
2,077,653 |
|
|
|
1,844,225 |
|
|
Operating loss |
|
(246,599 |
) |
|
|
(306,126 |
) |
|
|
(1,048,975 |
) |
|
|
(1,053,833 |
) |
|
Other non-operating income, net |
|
4,159 |
|
|
|
12,743 |
|
|
|
8,398 |
|
|
|
6,652 |
|
|
Loss before income taxes |
|
(242,440 |
) |
|
|
(293,383 |
) |
|
|
(1,040,577 |
) |
|
|
(1,047,181 |
) |
|
Provision for income taxes |
|
13,920 |
|
|
|
16,389 |
|
|
|
20,901 |
|
|
|
11,965 |
|
|
Net loss |
$ |
(256,360 |
) |
|
$ |
(309,772 |
) |
|
$ |
(1,061,478 |
) |
|
$ |
(1,059,146 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Net loss per share attributable to common stockholders, basic and diluted |
$ |
(0.43 |
) |
|
$ |
(0.56 |
) |
|
$ |
(1.82 |
) |
|
$ |
(2.05 |
) |
|
Weighted-average Class A and Class B shares used in computing net loss per share attributable to common stockholders, basic and diluted |
|
592,063,675 |
|
|
|
555,708,307 |
|
|
|
584,285,678 |
|
|
|
516,869,588 |
|
|
Cost of revenue and operating expenses includes: |
|||||||||||
|
Stock-based compensation expense(a) as follows: |
|||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||
|
in thousands |
2022 |
|
2021 |
|
2022 |
|
2021 |
||||
|
Cost of subscription revenue |
$ |
5,015 |
|
$ |
3,626 |
|
$ |
18,798 |
|
$ |
12,148 |
|
Cost of professional services and other revenue |
|
8,268 |
|
|
7,138 |
|
|
34,022 |
|
|
25,299 |
|
Research and development |
|
39,419 |
|
|
39,369 |
|
|
154,972 |
|
|
128,779 |
|
Sales and marketing |
|
53,418 |
|
|
41,615 |
|
|
208,958 |
|
|
136,532 |
|
General and administrative |
|
149,462 |
|
|
200,800 |
|
|
617,424 |
|
|
754,382 |
|
Total stock-based compensation expense, including cash settled(a) |
$ |
255,582 |
|
$ |
292,548 |
|
$ |
1,034,174 |
|
$ |
1,057,140 |
________________
(a) During the three months ended
Amortization of acquired intangible assets as follows:
|
|
Three Months Ended |
|
Year Ended |
||||||||
|
in thousands |
2022 |
|
2021 |
|
2022 |
|
2021 |
||||
|
Cost of revenue |
$ |
7,385 |
|
$ |
7,270 |
|
$ |
29,914 |
|
$ |
8,243 |
|
Sales and marketing |
|
5,532 |
|
|
5,265 |
|
|
22,121 |
|
|
5,441 |
|
General and administrative |
|
312 |
|
|
305 |
|
|
1,270 |
|
|
446 |
|
Total amortization of acquired intangible assets |
$ |
13,229 |
|
$ |
12,840 |
|
$ |
53,305 |
|
$ |
14,130 |
|
Consolidated Statements of Cash Flows (Unaudited, in thousands) |
|||||||
|
|
Year Ended |
||||||
|
|
2022 |
|
2021 |
||||
|
Cash flows from operating activities |
|
|
|
||||
|
Net loss |
$ |
(1,061,478 |
) |
|
$ |
(1,059,146 |
) |
|
Adjustments to reconcile net loss to net cash provided by operating activities |
|
|
|
||||
|
Depreciation and amortization |
|
97,540 |
|
|
|
46,009 |
|
|
Loss on disposal of property and equipment |
|
787 |
|
|
|
1,498 |
|
|
Change in fair value of distribution liability for tax sharing agreement |
|
(6,500 |
) |
|
|
(13,500 |
) |
|
Reduction of right-of-use assets from operating leases |
|
29,280 |
|
|
|
23,078 |
|
|
Stock-based compensation expense, including cash settled |
|
1,034,174 |
|
|
|
1,057,140 |
|
|
Amortization of deferred contract acquisition costs |
|
71,623 |
|
|
|
50,038 |
|
|
Deferred income taxes |
|
(18,482 |
) |
|
|
(11,654 |
) |
|
Changes in assets and liabilities, excluding the effect of business combinations: |
|
|
|
||||
|
Accounts receivable, net of allowances |
|
(77,247 |
) |
|
|
(146,966 |
) |
|
Prepaid expenses and other current assets |
|
(554 |
) |
|
|
(20,975 |
) |
|
Deferred contract acquisitions costs |
|
(133,234 |
) |
|
|
(99,869 |
) |
|
Other assets |
|
(6,941 |
) |
|
|
(18,308 |
) |
|
Lease liabilities |
|
(22,516 |
) |
|
|
(15,528 |
) |
|
Accounts payable |
|
50,182 |
|
|
|
24,333 |
|
|
Accrued liabilities |
|
(10,031 |
) |
|
|
55,316 |
|
|
Deferred revenue |
|
121,647 |
|
|
|
215,444 |
|
|
Other liabilities |
|
(45,003 |
) |
|
|
(4,712 |
) |
|
Settlement of stock-based payments liabilities |
|
(5,344 |
) |
|
|
(79,397 |
) |
|
Net cash flows provided by operating activities |
|
17,903 |
|
|
|
2,801 |
|
|
|
|
|
|
||||
|
Cash flows from investing activities |
|
|
|
||||
|
Purchases of property and equipment |
|
(51,200 |
) |
|
|
(103,823 |
) |
|
Cash paid for business combinations, net of cash acquired |
|
— |
|
|
|
(141,792 |
) |
|
Net cash flows used in investing activities |
|
(51,200 |
) |
|
|
(245,615 |
) |
|
|
|
|
|
||||
|
Cash flows from financing activities |
|
|
|
||||
|
Proceeds from capital contributions from SAP |
|
— |
|
|
|
115,000 |
|
|
Proceeds from issuance of class A common stock, net of underwriting discounts and commissions |
|
— |
|
|
|
3,359,822 |
|
|
Payment of costs related to issuance of class A common stock |
|
— |
|
|
|
(3,351 |
) |
|
Repayment of promissory note |
|
— |
|
|
|
(2,392,280 |
) |
|
Payments for taxes related to net share settlement of equity awards |
|
(293,123 |
) |
|
|
(47,783 |
) |
|
Issuance of class A common stock through Employee Stock Purchase Plan |
|
32,521 |
|
|
|
16,586 |
|
|
Proceeds from exercise of stock options |
|
1,701 |
|
|
|
5,649 |
|
|
Net cash flows provided by (used in) financing activities |
|
(258,901 |
) |
|
|
1,053,643 |
|
|
|
|
|
|
||||
|
Effect of changes in exchange rates on cash and cash equivalents |
|
(2,421 |
) |
|
|
(209 |
) |
|
Net increase (decrease) in cash and cash equivalents |
|
(294,619 |
) |
|
|
810,620 |
|
|
Cash and cash equivalents at the beginning of the period |
|
1,014,511 |
|
|
|
203,891 |
|
|
Cash and cash equivalents at the end of the period |
$ |
719,892 |
|
|
$ |
1,014,511 |
|
|
Reconciliation of GAAP to Non-GAAP Measures (Unaudited, in thousands) |
|||||||||||||||
|
Non-GAAP Gross Profit and Margin |
|||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
|
|
(In thousands) |
||||||||||||||
|
GAAP gross profit |
$ |
274,514 |
|
|
$ |
224,157 |
|
|
$ |
1,028,678 |
|
|
$ |
790,392 |
|
|
Add: Stock-based compensation expense, including cash settled and employer payroll tax on employee stock transactions(1)(2) |
|
13,402 |
|
|
|
10,764 |
|
|
|
54,114 |
|
|
|
37,447 |
|
|
Add: Amortization of acquired intangible assets |
|
7,385 |
|
|
|
7,270 |
|
|
|
29,914 |
|
|
|
8,243 |
|
|
Non-GAAP gross profit |
$ |
295,301 |
|
|
$ |
242,191 |
|
|
$ |
1,112,706 |
|
|
$ |
836,082 |
|
|
Non-GAAP gross margin |
|
75.9 |
% |
|
|
76.6 |
% |
|
|
76.3 |
% |
|
|
77.7 |
% |
We calculate non-GAAP gross profit as GAAP gross profit excluding equity and cash settled stock-based compensation expense allocated to cost of revenue, including employer payroll tax on employee stock transactions, and amortization of acquired intangible assets allocated to cost of revenue. Non-GAAP gross margin is calculated as non-GAAP gross profit divided by total revenue.
|
Non-GAAP Operating Income and Margin |
|||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
|
|
(In thousands) |
||||||||||||||
|
GAAP operating loss |
$ |
(246,599 |
) |
|
$ |
(306,126 |
) |
|
$ |
(1,048,975 |
) |
|
$ |
(1,053,833 |
) |
|
Add: Stock-based compensation expense, including cash settled and employer payroll tax on employee stock transactions(1)(2) |
|
257,224 |
|
|
|
292,548 |
|
|
|
1,052,595 |
|
|
|
1,057,140 |
|
|
Add: Amortization of acquired intangible assets |
|
13,229 |
|
|
|
12,840 |
|
|
|
53,305 |
|
|
|
14,130 |
|
|
Add: Acquisition related costs |
|
— |
|
|
|
1,059 |
|
|
|
866 |
|
|
|
14,489 |
|
|
Non-GAAP operating income |
$ |
23,854 |
|
|
$ |
321 |
|
|
$ |
57,791 |
|
|
$ |
31,926 |
|
|
Non-GAAP operating margin |
|
6.1 |
% |
|
|
(0.2 |
) % |
|
|
4.0 |
% |
|
|
3.0 |
% |
We calculate non-GAAP operating income as GAAP operating loss excluding equity and cash settled stock-based compensation expense, including employer payroll tax on employee stock transactions, amortization of acquired intangible assets, and acquisition related costs. Non-GAAP operating margin is calculated as non-GAAP operating income divided by total revenue.
|
Non-GAAP Net Income (Loss) and Non-GAAP Net Income (Loss) Per Share |
|||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
|
|
(In thousands, except share and per share data) |
||||||||||||||
|
GAAP net loss |
$ |
(256,360 |
) |
|
$ |
(309,772 |
) |
|
$ |
(1,061,478 |
) |
|
$ |
(1,059,146 |
) |
|
Add: Stock-based compensation expense, including cash settled and employer payroll tax on employee stock transactions(1)(2) |
|
257,224 |
|
|
|
292,548 |
|
|
|
1,052,595 |
|
|
|
1,057,140 |
|
|
Add: Amortization of acquired intangible assets |
|
13,229 |
|
|
|
12,840 |
|
|
|
53,305 |
|
|
|
14,130 |
|
|
Add: Acquisition related costs |
|
— |
|
|
|
1,059 |
|
|
|
866 |
|
|
|
14,489 |
|
|
Add (less): Change in fair value of distribution liability for tax sharing agreement |
|
4,000 |
|
|
|
(13,500 |
) |
|
|
(6,500 |
) |
|
|
(13,500 |
) |
|
Less: Tax impact of the non-GAAP adjustments |
|
(2,082 |
) |
|
|
(22,613 |
) |
|
|
(13,816 |
) |
|
|
(19,132 |
) |
|
Non-GAAP net income (loss) |
$ |
16,011 |
|
|
$ |
(39,438 |
) |
|
$ |
24,972 |
|
|
$ |
(6,019 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted-average Class A and Class B shares used in computing non-GAAP net income (loss) per share attributable to common stockholders, basic |
|
592,063,675 |
|
|
|
555,708,307 |
|
|
|
584,285,678 |
|
|
|
516,869,588 |
|
|
Non-GAAP net income (loss) per share attributable to common stockholders, basic |
$ |
0.03 |
|
|
$ |
(0.07 |
) |
|
$ |
0.04 |
|
|
$ |
(0.01 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted-average Class A and Class B shares used in computing non-GAAP net income (loss) per share attributable to common stockholders, diluted |
|
592,063,675 |
|
|
|
555,708,307 |
|
|
|
584,962,603 |
|
|
|
516,869,588 |
|
|
Non-GAAP net income (loss) per share attributable to common stockholders, diluted |
$ |
0.03 |
|
|
$ |
(0.07 |
) |
|
$ |
0.04 |
|
|
$ |
(0.01 |
) |
We calculate non-GAAP net income (loss) as GAAP net loss excluding equity and cash settled stock-based compensation expense, including employer payroll tax on employee stock transactions, amortization of acquired intangible assets, acquisition related costs, changes in the fair value of our distribution liability for our tax sharing agreement with SAP, and the tax impact of the non-GAAP adjustments. Non-GAAP net income (loss) per share is calculated as non-GAAP net income (loss) divided by the weighted-average Class A and Class B shares attributable to common stockholders.
|
Free Cash Flow and Margin |
|||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
|
|
(In thousands) |
||||||||||||||
|
Net cash provided by operating activities |
$ |
23,897 |
|
|
$ |
13,664 |
|
|
$ |
17,903 |
|
|
$ |
2,801 |
|
|
Less: Capital expenditures |
|
(14,997 |
) |
|
|
(74,112 |
) |
|
|
(51,200 |
) |
|
|
(103,823 |
) |
|
Free cash flow |
|
8,900 |
|
|
|
(60,448 |
) |
|
|
(33,297 |
) |
|
|
(101,022 |
) |
|
Free cash flow margin |
|
2 |
% |
|
|
(19 |
) % |
|
|
(2 |
) % |
|
|
(9 |
) % |
We calculate free cash flow as net cash provided by operating activities less capital expenditures. Free cash flow margin is calculated as free cash flow divided by total revenue. We incurred significant cash outflows in connection with the settlement of liability-classified, stock-based awards in accordance with SAP’s employee equity compensation programs. Our free cash flow for the three months ended
|
________________ |
||
| (1) | Our stock-based compensation expense reflects the recognition of both equity-classified awards and liability-classified awards. Liability-classified awards are settled in cash in accordance with SAP’s employee equity compensation programs. Liability-classified awards are recorded according to mark-to-market accounting. On |
|
| (2) |
During the three months ended |
|
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