8-K
false000163787300016378732022-08-102022-08-10

 

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 10, 2022

 

 

ACV Auctions Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware

001-40256

47-2415221

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

640 ELLICOTT STREET #321

 

Buffalo, New York

 

14203

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (800) 553-4070

 

Not Applicable

(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

Class A common stock, par value $0.001 per share

 

ACVA

 

The NASDAQ Stock Market LLC

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 10, 2022, ACV Auctions, Inc. (the "Company") issued a press release announcing its financial results for the quarter ended June 30, 2022. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

 

The information contained in this Item 2.02, including Exhibit 99.1 hereto, 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 made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filings, unless expressly incorporated by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

 

 Exhibit No.

 

 Description

99.1

 

Press Release dated August 10, 2022

104

 

Cover page Interactive Data File (embedded within 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.

 

 

 

ACV AUCTIONS INC.

 

 

 

 

Date:

August 10, 2022

By:

/s/ William Zerella

 

 

 

William Zerella
Chief Financial Officer

 


EX-99.1

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Exhibit 99.1


ACV Announces Second Quarter 2022 Results
Gains Market Share, Delivers Solid Revenue Growth and Margin Improvement
Updates 2022 Guidance

Second quarter revenue of $115 million, up 18% YoY
Second quarter GAAP net loss of $25 million
Second quarter Adjusted EBITDA loss of $14 million; Adjusted EBITDA margin expansion of ~500 basis points from first quarter 2022
Expects 2022 revenue of $427 million to $432 million, growth of 19% to 21% YoY; expects 2022 Adjusted EBITDA loss of $57 million to $59 million

 

BUFFALO, August 10, 2022 — ACV (Nasdaq: ACVA), the leading online automotive marketplace and data services partner for dealers, today reported results for its second quarter ended June 30, 2022.

“We are very pleased with our second quarter results, which once again exceeded revenue expectations, despite continued headwinds impacting the automotive industry, while also delivering strong quarter-over-quarter margin expansion. Our growth is driven by market share gains, continued strong adoption of ACV’s value-added services, and traction in our growing suite of data and SaaS solutions,” said George Chamoun, CEO of ACV.

“While we continue to experience strong adoption across our growing marketplace, we are updating our 2022 guidance to reflect weakening consumer demand and ongoing supply challenges in the automotive industry, with a corresponding reduction in operating expenses,” continued Chamoun.

“These macroeconomic factors are expected to constrain wholesale volumes in the near-term, but we believe ACV is in a strong position to deliver sustainable growth as end-markets recover, while also continuing to scale our asset-light business model,” concluded Chamoun.

Second Quarter 2022 Highlights

Revenue of $115 million, an increase of 18% year over year.
Marketplace and Service revenue of $98 million, an increase of 16% year over year.
Marketplace GMV of $2.7 billion, an increase of approximately 27% year over year.
Marketplace Units of 148,047, a decrease of 3% year over a year, a 6% increase compared to first quarter 2022
Adjusted EBITDA loss of $14 million, compared to Adjusted EBITDA loss of $4 million in the second quarter 2021. Adjusted EBITDA margin increased approximately 500 basis points compared to first quarter 2022.

Third Quarter and Full-Year 2022 Guidance

Based on information as of today, ACV is providing the following guidance:

Third quarter of 2022:
o
Total revenue of $104 to $107 million, an increase of 13% to 17% year over year
o
Adjusted EBITDA loss of $13 to $15 million
o
GAAP net loss of $29 to $31 million
o
Non-GAAP net loss of $15 to $16 million

 


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Full-Year 2022:
o
Total revenue of $427 to $432 million, an increase of 19% to 21% year over year
o
Adjusted EBITDA loss of $57 to $59 million; an approximate 14% loss at the midpoint of revenue guidance
o
GAAP net loss of $113 to $115 million
o
Non-GAAP net loss of $65 to $67 million

Our financial guidance includes the following assumptions:

Wholesale volumes are expected to remain constrained due to the ongoing automotive OEM production challenges and softening retail demand for used vehicles.
Marketplace conversion rates are expected to remain at the lower-end of our historical range until seller and buyer price expectations converge to more normalized levels.
Total non-GAAP operating expenses, excluding cost of revenue, are expected to grow approximately 23% year over year in 2022, reflecting a reduction in exit run rate by approximately $40 million versus initial 2022 guidance, and exclude approximately $43 million of stock-based compensation and $4 million of intangible amortization.
Third quarter non-GAAP net loss excludes approximately $13 million of stock-based compensation and approximately $1 million of intangible amortization.

 

ACV’s Second Quarter Results Conference Call

ACV will host a conference call and live webcast today, August 10, 2022, at 5:00 p.m. ET to discuss financial results. To access the live conference call, please pre-register using this link. Registrants will receive confirmation with dial-in details. A live webcast of the call can be accessed here. Participants are encouraged to join the webcast unless asking a question. An archived webcast of the conference call will be available on the investor relations page of the Company’s website at https://investors.acvauto.com.

About ACV Auctions

ACV provides a vibrant digital marketplace for wholesale vehicle transactions and data services that offers transparent and accurate vehicle information to customers. On a mission to build and enable the most trusted and efficient digital marketplaces for buying and selling used vehicles, ACV's platform leverages data insights and technology to power its digital marketplace and data services, enabling dealers and commercial partners to buy, sell and value vehicles with confidence and efficiency. ACV's network of brands includes ACV Auctions, ACV Transportation and ACV Capital within its Marketplace Products, as well as True360, ACV Data Services and MAX Digital.

Information About Non-GAAP Financial Measures

ACV provides supplemental non-GAAP financial measures to its financial results. We use these non-GAAP financial measures, and we believe that they assist our investors to make period-to-period comparisons of our operating performance because they provide a view of our operating results without items that are not, in our view, indicative of our operating results. These non-GAAP financial measures should not be construed as an alternative to GAAP results as the items excluded from the non-GAAP financial measures often have a material impact on our operating results, certain of those items are recurring, and others often recur. Management uses, and investors should consider, our non-GAAP financial measures only in conjunction with our GAAP results.

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Non-GAAP Financial Measures

Adjusted EBITDA is a financial measure that is not presented in accordance with GAAP. We believe that Adjusted EBITDA, when taken together with our financial results presented in accordance with GAAP, provides meaningful supplemental information regarding our operating performance and facilitates internal comparisons of our historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, we believe that the use of Adjusted EBITDA is helpful to our investors as it is a measure used by management in assessing the health of our business, determining incentive compensation and evaluating our operating performance, as well as for internal planning and forecasting purposes.

We define Adjusted EBITDA as net loss, adjusted to exclude: depreciation and amortization; stock-based compensation expense; interest (income) expense; provision for income taxes; other (income) expense, net; and other one-time non-recurring items of a material nature, when applicable, such as acquisition-related and restructuring expenses.

Adjusted EBITDA 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 GAAP. Some of the limitations include that (1) it does not properly reflect capital commitments to be paid in the future; (2) 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; (3) it does not consider the impact of stock-based compensation expense, (4) it does not reflect other non-operating expenses, including interest expense, (5) it does not consider the impact of any contingent consideration liability valuation adjustments, (6) it does not reflect tax payments that may represent a reduction in cash available to us, and (7) it does not reflect other one-time, non-recurring items of a material nature, when applicable, such as acquisition-related and restructuring expenses. In addition, our use of Adjusted EBITDA may not be comparable to similarly titled measures of other companies because they may not calculate Adjusted EBITDA in the same manner, limiting its usefulness as a comparative measure.

Non-GAAP Net income (loss), a financial measure that is not presented in accordance with GAAP, provides investors with additional useful information to measure operating performance and current and future liquidity when taken together with our financial results presented in accordance with GAAP. By providing this information, we believe management and the users of the financial statements are better able to understand the financial results of what we consider to be our organic, continuing operations.

We define Non-GAAP Net income (loss) as net income (loss), adjusted to exclude: stock-based compensation expense, amortization of acquired intangible assets, and other one-time, non-recurring items of a material nature, when applicable, such as acquisition-related and restructuring expenses.

In the calculation of Non-GAAP Net income (loss), we exclude stock-based compensation expense because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact our non-cash expense. We believe that providing non-GAAP financial measures that exclude stock-based compensation expense allows for more meaningful comparisons between our operating results from period to period.

We exclude amortization of acquired intangible assets from the calculation of Non-GAAP Net income (loss). We believe that excluding the impact of amortization of acquired intangible assets allows for more meaningful comparisons between operating results from period to period as the underlying intangible assets are valued at the time of acquisition and are amortized over several years after the acquisition.

We exclude contingent consideration liability valuation adjustments associated with the purchase consideration of transactions accounted for as business combinations. We also exclude certain other one-time, non-recurring items of a material nature, when applicable, such as acquisition-related and restructuring expenses, because we do not consider such amounts to be part of our ongoing operations nor are they comparable to prior period nor predictive of future results.

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Non-GAAP net income (loss) 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 GAAP. Some of these limitations include that: (1) it does not consider the impact of stock-based compensation expense; (2) although amortization is a non-cash charge, the underlying assets may need to be replaced and Non-GAAP Net income (loss) does not reflect these capital expenditures; (3) it does not consider the impact of any contingent consideration liability valuation adjustments; and (4) it does not consider the impact of other one-time charges, such as acquisition-related and restructuring expenses, which could be material to the results of our operations. In addition, our use of Non-GAAP Net income (loss) may not be comparable to similarly titled measures of other companies because they may not calculate Non-GAAP Net income (loss) in the same manner, limiting its usefulness as a comparative measure.

Information About Operating and Financial Metrics

We regularly monitor the following operating and financial metrics in order to measure our current performance and estimate our future performance. Our key operating and financial metrics may be calculated in a manner different than similar business metrics used by other companies.

Operating and Financial Metrics

Marketplace GMV - Marketplace GMV is primarily driven by the volume and dollar value of Marketplace Units transacted on our digital marketplace. We believe that Marketplace GMV acts as an indicator of the success of our marketplace, signaling satisfaction of dealers and buyers on our marketplace, and the health, scale, and growth of our business. We define Marketplace GMV as the total dollar value of vehicles transacted through our digital marketplace within the applicable period, excluding any auction and ancillary fees.

Marketplace Units - Marketplace Units is a key indicator of our potential for growth in Marketplace GMV and revenue. It demonstrates the overall engagement of our customers on the ACV platform, the vibrancy of our digital marketplace and our market share of wholesale transactions in the United States. We define Marketplace Units as the number of vehicles transacted on our digital marketplace within the applicable period. Marketplace Units transacted includes any vehicle that successfully reaches sold status, even if the auction is subsequently unwound, meaning the buyer or seller does not complete the transaction. These instances have been immaterial to date. Marketplace Units excludes vehicles that were inspected by ACV, but not sold on our digital marketplace. Marketplace Units have increased over time as we have expanded our territory coverage, added new dealer partners and increased our share of wholesale transactions from existing customers.

Forward-Looking Statements

This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements concerning ACV’s ability to deliver long-term growth and total addressable market expansion, our financial guidance for the second quarter of 2022 and the full year of 2022. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will” or “would” or the negative of these words or other similar terms or expressions. You should not rely on forward-looking statements as predictions of future events.

 

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The forward-looking statements contained in this presentation are based on ACV’s current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties and changes in circumstances that may cause ACV’s actual results, performance or achievements to differ materially from those expressed or implied in any forward-looking statement. These risks and uncertainties include, but are not limited to: (1) our history of operating losses; (2) our limited operating history; (3) our ability to effectively manage our growth; (4) our ability to grow the number of participants on our platform; (5) general market, political, economic, and business conditions; (6) our ability to acquire new customers and successfully retain existing customers; (7) our ability to effectively develop and expand our sales and marketing capabilities; (8) breaches in our security measures, unauthorized access to our platform, our data, or our customers’ or other users’ personal data; (9) risk of interruptions or performance problems associated with our products and platform capabilities; (10) our ability to adapt and respond to rapidly changing technology or customer needs; (11) our ability to compete effectively with existing competitors and new market entrants; (12) our ability to comply or remain in compliance with laws and regulations that currently apply or become applicable to our business in the United States and other jurisdictions where we elect to do business; and (13) the impact that the ongoing COVID-19 pandemic and any related economic downturn could have on our or our customers’ businesses, financial condition and results of operations. These and other risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission (“SEC”), including in the section entitled “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, filed with the SEC on August 10, 2022. Additional information will be made available in other filings and reports that we may file from time to time with the SEC. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. The forward-looking statements made in this presentation relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this presentation to reflect events or circumstances after the date of this presentation or to reflect new information or the occurrence of unanticipated events, except as required by law.

 

Investor Contact:
Tim Fox
tfox@acvauctions.com 

Media Contact:
Maura Duggan
mduggan@acvauctions.com 

 

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ACV AUCTIONS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

 

 

Three months ended June 30,

 

 

Six months ended June 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

Marketplace and service revenue

$

97,752

 

 

$

83,934

 

 

$

186,099

 

 

$

142,326

 

Customer assurance revenue

 

17,320

 

 

 

13,440

 

 

 

32,038

 

 

 

24,134

 

Total revenue

 

115,072

 

 

 

97,374

 

 

 

218,137

 

 

 

166,460

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Marketplace and service cost of revenue (excluding
   depreciation & amortization)

 

49,893

 

 

 

42,788

 

 

 

97,145

 

 

 

72,297

 

Customer assurance cost of revenue (excluding
   depreciation & amortization)

 

14,575

 

 

 

11,129

 

 

 

28,211

 

 

 

20,515

 

Operations and technology

 

36,720

 

 

 

23,513

 

 

 

69,549

 

 

 

45,104

 

Selling, general, and administrative

 

36,144

 

 

 

27,513

 

 

 

72,196

 

 

 

51,478

 

Depreciation and amortization

 

2,479

 

 

 

1,761

 

 

 

4,864

 

 

 

3,529

 

Total operating expenses

 

139,811

 

 

 

106,704

 

 

 

271,965

 

 

 

192,923

 

Loss from operations

 

(24,739

)

 

 

(9,330

)

 

 

(53,828

)

 

 

(26,463

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

638

 

 

 

45

 

 

 

682

 

 

 

71

 

Interest expense

 

(238

)

 

 

(251

)

 

 

(448

)

 

 

(461

)

Total other income (expense)

 

400

 

 

 

(206

)

 

 

234

 

 

 

(390

)

Loss before income taxes

 

(24,339

)

 

 

(9,536

)

 

 

(53,594

)

 

 

(26,853

)

Provision for income taxes

 

176

 

 

 

156

 

 

 

416

 

 

 

214

 

Net loss

$

(24,515

)

 

$

(9,692

)

 

$

(54,010

)

 

$

(27,067

)

Weighted-average shares - basic and diluted

 

156,703,734

 

 

 

154,572,225

 

 

 

156,484,903

 

 

 

94,762,407

 

Net loss per share - basic and diluted

$

(0.16

)

 

$

(0.06

)

 

$

(0.35

)

 

$

(0.29

)

 

 

 

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ACV AUCTIONS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

 

 

 

June 30,
2022

 

 

December 31,
2021

 

Assets

 

 

 

 

 

 

Current Assets :

 

 

 

 

 

 

Cash and cash equivalents

 

$

303,942

 

 

$

565,994

 

Marketable securities

 

 

207,978

 

 

 

13,765

 

Trade receivables (net of allowance of $4,266 and $3,724)

 

 

225,856

 

 

 

222,753

 

Finance receivables (net of allowance of $971 and $636)

 

 

77,289

 

 

 

44,278

 

Other current assets

 

 

11,514

 

 

 

10,623

 

 Total current assets

 

 

826,579

 

 

 

857,413

 

Property and equipment (net of accumulated depreciation of $5,793 and $4,636)

 

 

5,620

 

 

 

4,916

 

Goodwill

 

 

90,681

 

 

 

78,839

 

Acquired intangible assets (net of amortization of $9,593 and $7,070)

 

 

21,211

 

 

 

18,130

 

Capitalized software (net of amortization of $5,006 and $3,837)

 

 

25,738

 

 

 

17,844

 

Operating lease right-of-use assets

 

 

5,292

 

 

 

3,264

 

Other assets

 

 

2,332

 

 

 

2,554

 

Total assets

 

 

977,453

 

 

 

982,960

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

Current Liabilities :

 

 

 

 

 

 

Accounts payable

 

 

356,490

 

 

 

395,972

 

Accrued payroll

 

 

12,002

 

 

 

11,961

 

Accrued other liabilities

 

 

10,786

 

 

 

9,806

 

Deferred revenue

 

 

5,067

 

 

 

4,317

 

Operating lease liabilities

 

 

1,515

 

 

 

1,306

 

 Total current liabilities

 

 

385,860

 

 

 

423,362

 

Long-term operating lease liabilities

 

 

3,958

 

 

 

2,049

 

Long-term debt

 

 

70,500

 

 

 

500

 

Other long-term liabilities

 

 

1,470

 

 

 

952

 

Total liabilities

 

$

461,788

 

 

$

426,863

 

Commitments and Contingencies (Note 5)

 

 

 

 

 

 

Stockholders' Equity :

 

 

 

 

 

 

Preferred Stock; $0.001 par value; 20,000,000 shares authorized;
   0 and 0 shares issued and outstanding at June 30, 2022
   and December 31, 2021, respectively

 

 

-

 

 

 

-

 

Common Stock - Class A; $0.001 par value; 2,000,000,000 shares authorized;
   114,933,675 and 106,420,843 shares issued and outstanding at June 30, 2022
   and December 31, 2021, respectively

 

 

115

 

 

 

106

 

Common Stock - Class B; $0.001 par value; 160,000,000 shares authorized;
   42,613,583 and 49,661,126 shares issued and outstanding at June 30, 2022
   and December 31, 2021, respectively

 

 

42

 

 

 

50

 

Additional paid-in capital

 

 

817,338

 

 

 

801,142

 

Accumulated deficit

 

 

(299,171

)

 

 

(245,161

)

Accumulated other comprehensive loss

 

 

(2,659

)

 

 

(40

)

Total stockholders' equity

 

 

515,665

 

 

 

556,097

 

Total liabilities and stockholders' equity

 

$

977,453

 

 

$

982,960

 

 

 

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ACV AUCTIONS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

Six months ended June 30,

 

 

 

2022

 

 

2021

 

Cash Flows from Operating Activities

 

 

 

 

 

 

Net loss

 

$

(54,010

)

 

$

(27,067

)

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

 

 

 

 

 

 

Depreciation and amortization

 

 

5,101

 

 

 

3,728

 

Stock-based compensation expense, net of amounts capitalized

 

 

16,293

 

 

 

6,630

 

Provision for bad debt

 

 

4,100

 

 

 

1,589

 

Other non-cash, net

 

 

406

 

 

 

469

 

Changes in operating assets and liabilities, net of effects from purchases of
   businesses:

 

 

 

 

 

 

Trade receivables

 

 

(6,154

)

 

 

(131,479

)

Other current assets

 

 

(134

)

 

 

(4,209

)

Accounts payable

 

 

(39,475

)

 

 

215,286

 

Accrued payroll

 

 

(317

)

 

 

4,208

 

Accrued other liabilities

 

 

895

 

 

 

1,532

 

Deferred revenue

 

 

739

 

 

 

2,182

 

Other long-term liabilities

 

 

213

 

 

 

163

 

Other assets

 

 

(209

)

 

 

(218

)

Net cash provided by (used in) operating activities

 

 

(72,552

)

 

 

72,814

 

Cash Flows from Investing Activities

 

 

 

 

 

 

Net increase in finance receivables

 

 

(33,892

)

 

 

(18,153

)

Purchases of property and equipment

 

 

(1,809

)

 

 

(1,664

)

Capitalization of software costs

 

 

(8,689

)

 

 

(4,597

)

Purchases of marketable securities

 

 

(197,312

)

 

 

-

 

Maturities and redemptions of marketable securities

 

 

2,000

 

 

 

-

 

Acquisition of businesses (net of cash acquired)

 

 

(18,913

)

 

 

-

 

Net cash provided by (used in) investing activities

 

 

(258,615

)

 

 

(24,414

)

Cash Flows from Financing Activities

 

 

 

 

 

 

Proceeds from issuance of common stock in connection with initial public offering, net of
     underwriting discounts and commissions and other offering costs

 

 

-

 

 

 

385,852

 

Proceeds from long term debt

 

 

130,000

 

 

 

5,250

 

Payments towards long term debt

 

 

(60,000

)

 

 

(9,582

)

Proceeds from exercise of stock options

 

 

759

 

 

 

679

 

Payment of RSU tax withholdings in exchange for common shares
   surrendered by RSU holders

 

 

(2,556

)

 

 

-

 

Proceeds from employee stock purchase plan

 

 

930

 

 

 

-

 

Net cash provided by (used in) financing activities

 

 

69,133

 

 

 

382,199

 

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

 

 

(18

)

 

 

-

 

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

 

 

(262,052

)

 

 

430,599

 

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

 

 

565,994

 

 

 

233,725

 

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

 

$

303,942

 

 

$

664,324

 

Supplemental disclosure of cash flow information

 

 

 

 

 

 

Cash paid (received) during the period for:

 

 

 

 

 

 

Interest (income) expense

 

$

(201

)

 

$

185

 

Income taxes

 

$

299

 

 

$

112

 

Cash paid included in the measurement of operating lease liabilities

 

$

662

 

 

$

-

 

Non-cash investing and financing activities:

 

 

 

 

 

 

Stock issuance costs in accounts payable

 

$

-

 

 

$

140

 

Stock-based compensation included in capitalized software development costs

 

$

750

 

 

$

-

 

Purchase of property and equipment and internal use software in accounts payable

 

$

288

 

 

$

858

 

 

 

 

 

8

 


https://cdn.kscope.io/c8994551970c4e282722c9cb9d558398-img170494200_1.jpg  

 

 

The following table presents a reconciliation of Non-GAAP Net loss to net loss, the most directly comparable financial measure stated in accordance with GAAP, for the periods presented:

 

 

Three months ended June 30,

 

 

Six months ended June 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Non-GAAP Net loss Reconciliation

 

 

 

 

 

 

 

 

 

 

 

Net loss

$

(24,515

)

 

$

(9,692

)

 

$

(54,010

)

 

$

(27,067

)

Stock-based compensation

 

8,369

 

 

 

3,763

 

 

 

16,293

 

 

 

6,629

 

Amortization of acquired intangible assets

 

1,300

 

 

 

774

 

 

 

2,529

 

 

 

1,592

 

Amortization of capitalized stock based compensation

 

164

 

 

 

-

 

 

 

164

 

 

 

-

 

Contingent losses (gains)

 

-

 

 

 

-

 

 

 

200

 

 

 

-

 

Non-GAAP Net loss

$

(14,682

)

 

$

(5,155

)

 

$

(34,824

)

 

$

(18,846

)

 

The following table presents a reconciliation of Adjusted EBITDA to net loss, the most directly comparable financial measure stated in accordance with GAAP, for the periods presented.

 

 

Three months ended June 30,

 

 

Six months ended June 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Adjusted EBITDA Reconciliation

 

 

 

 

 

 

 

 

 

 

 

Net loss

$

(24,515

)

 

$

(9,692

)

 

$

(54,010

)

 

$

(27,067

)

Depreciation and amortization

 

2,585

 

 

 

1,837

 

 

 

5,101

 

 

 

3,728

 

Stock-based compensation

 

8,369

 

 

 

3,763

 

 

 

16,293

 

 

 

6,630

 

Interest (income) expense

 

(400

)

 

 

206

 

 

 

(234

)

 

 

390

 

Provision for income taxes

 

176

 

 

 

156

 

 

 

416

 

 

 

214

 

Other (income) expense, net

 

(292

)

 

 

43

 

 

 

399

 

 

 

58

 

Adjusted EBITDA

$

(14,077

)

 

$

(3,687

)

 

$

(32,035

)

 

$

(16,047

)

 

9