Tenable宣佈2024年第三季度財務業績
•營業收入爲22710萬美元，同比增長13%。
•計算出當前的賬單金額爲24840萬美元，同比增長11%。
•（1）% 的GAAP 營業利潤率； 非GAAP營業利潤率爲20%。
•經營活動產生的淨現金流爲5460萬美元；不負債的自由現金流爲6080萬美元。
•20000萬美元擴大我們的股票回購計劃。
2024年10月30日，馬里蘭哥倫比亞 - 納斯達克上市公司Tenable Holdings, Inc.（"Tenable"）（股票代碼：TENB），曝光管理公司，今天宣佈了截至2024年9月30日的本季度財務業績。
「在第三季度，Tenable的董事長兼首席執行官阿米特·約蘭表示："我們在收入和利潤兩方面均大幅超出預期。"雲安全和Tenable One，我們的風險管理平台，繼續推動需求增長，因爲客戶越來越專注於保護關鍵的雲基礎建設，並評估他們在混合世界中的整體風險敞口。」
2024年第三季度財務亮點
•營業收入爲22710萬美元，同比增長13%。
•計算出的當前賬單金額爲24840萬美元，同比增長11%。
•運營方面的GAAP虧損爲210萬美元，相比2023年第三季度的790萬美元。
•非通用會計原則下的營業收入爲4500萬美元，相比於2023年第三季度的3660萬美元。
•根據通用會計準則，淨虧損爲920萬美元，相比之下，2023年第三季度爲1560萬美元。
•2023年第三季度，按照通用公認會計准則計算，每股淨虧損爲0.08美元，相比之下，去年同期爲0.13美元。
•非通用會計淨利潤爲3930萬美元，較2023年第三季度的2770萬美元。
•非通用會計每股攤薄收益爲0.32美元，2023年第三季度爲0.23美元。
•現金及現金等價物和開空投資於2024年9月30日爲54840萬美元，在2023年12月31日爲47400萬美元。
•經營活動產生的淨現金爲5460萬美元，2023年第三季度爲4240萬美元。
•未償債自由現金流爲6080萬美元，而2023年第三季度爲4820萬美元。
最新業務亮點
•新增了386個企業平台客戶和60個新增的六位數客戶。
•宣佈我們的董事會最近批准擴大現有的股票回購計劃，將現有授權額額度增加$20000萬。
•發佈了AI Aware，旨在快速展現人工智能解決方案、漏洞和弱點的高級檢測能力。
•引入了漏洞情報和曝光響應這兩個功能強大、基於上下文的優先處理和響應功能，旨在在IT和雲環境中提供可操作的情報。
•通過爲Tenable雲安全增加新的數據安全姿態管理（DSPM）和人工智能安全姿態管理（AI-SPM）功能，擴展了對雲數據和人工智能的管理能力。
•推出了Tenable Enclave安防-半導體，這是一種解決方案，支持在高度安全環境中運營的客戶的需求。
•在2024年CRN年度報告卡獎項中被認可爲雲安防領域的頂尖表現者。
財務展望
2024年第四季度，我們目前預期：
•營業收入在229.0百萬美元到233.0百萬美元的區間內。
•非通用會計準則下的營業收入在4700萬美元至4900萬美元的區間內。
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•淨利潤爲4200萬到4400萬美元的非通用會計淨利潤，假設利息支出爲780萬美元，利息收入爲600萬美元，所得稅準備金爲310萬美元。
•非通用會計準則下的攤薄每股收益在0.33美元至0.35美元的區間內。
•12550萬股攤薄加權平均股本。
截至2024年12月31日的年度，我們目前預期：
•計算得出當前賬單在957.0百萬美元至967.0百萬美元的區間。
•營業收入在8.933億美元到8.973億美元的區間內。
•非通用會計淨營業收入在17180萬到17380萬的區間內。
•非通用會計淨利潤在14990萬到15190萬美元的區間內，假設利息支出爲32.1百萬美元，利息收入爲23.5百萬美元，所得稅準備金爲12.3百萬美元。
•非通用會計每股攤薄收益在1.21到1.23的區間內。
•12350萬股攤薄加權平均股份。
•區間內的未槓桿自由現金流爲2.25億美元至2.35億美元。
電話會議信息
Tenable將於2024年10月30日下午4:30舉行電話會議，討論其財務業績。您可以撥打877-407-9716（美國）和201-493-6779（國際）來參與會議。活動的現場網絡直播將在Tenable投資者關係網站上提供。 https://investors.tenable.com。結束後，網站的投資者關係頁面將提供現場廣播的存檔重播。
關於Tenable
Tenable® 是曝光管理公司，暴露並填補侵蝕業務價值、聲譽和信任的網絡安全概念漏洞。該公司基於人工智能的曝光管理平台徹底統一了安全可見性、洞察力和行動，並在攻擊面上提供裝備，使現代組織能夠從IT基礎設施到雲環境再到關鍵基礎設施以及其間的任何地方防範攻擊。通過保護企業免受安全曝光，Tenable爲全球約44,000家客戶減少了業務風險。欲了解更多信息，請訪問tenable.com.
聯繫信息
投資者關係
investors@tenable.com
媒體關係
tenablepr@tenable.com
前瞻性聲明
本新聞稿包含根據1995年《私人證券訴訟改革法案》「安全港」條款的前瞻性聲明。除歷史事實陳述外，本新聞稿中包含的所有聲明，包括關於我們未來經營結果和財務狀況、我們平台能夠幫助企業免受安全威脅、業務策略和未來經營計劃和目標的聲明，均爲前瞻性聲明，並代表我們在本新聞稿發佈日期的看法。我們根據我們對未來事件和金融趨勢的當前期望和預測，認爲這些可能影響我們的財務狀況、經營結果、業務策略、短期和長期經營活動和目標以及財務需求的前瞻性聲明。這些前瞻性聲明受到多個假設、風險和不確定因素的影響，其中許多涉及我們無法控制的因素或情況，這些因素可能影響我們的財務結果。這些風險和不確定因素在我們於2023年12月31日結束的年度10-k表格的《風險因素》和《管理對財務狀況和經營結果的討論》部分中有詳細說明，同時還包括我們不時向美國證券交易委員會提交的其他文件，這些文件可在SEC網站sec.gov上查閱。此外，我們運營在一個競爭激烈且迅速變化的環境中。不斷湧現新的風險。我們的管理無法預測所有風險，也無法評估所有因素對我們業務的影響，以及任何單一因素或因素組合對我們業務的程度。
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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, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in any forward-looking statements. Except as required by law, we are under no obligation to update these forward-looking statements subsequent to the date of this press release, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with 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 the 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 management for financial and operational decision-making. We include these non-GAAP financial measures to present our financial performance using a management view and because we believe that these measures provide an additional comparison of our core financial performance over multiple periods with other companies in our industry.
Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial tables accompanying this press release.
Calculated Current Billings: We define calculated current billings, a non-GAAP financial measure, as total revenue recognized in a period plus the change in current deferred revenue in the corresponding period. We believe that calculated current billings is a key metric to measure our periodic performance. Given that most of our customers pay in advance (including multi-year contracts), but we generally recognize the related revenue ratably over time, we use calculated current billings to measure and monitor our ability to provide our business with the working capital generated by upfront payments from our customers. We believe that calculated current billings, which excludes deferred revenue for periods beyond twelve months in a customer’s contractual term, more closely correlates with annual contract value and that the variability in total billings, depending on the timing of large multi-year contracts and the preference for annual billing versus multi-year upfront billing, may distort growth in one period over another.
Free Cash Flow and Unlevered Free Cash Flow: We define free cash flow, a non-GAAP financial measure, as net cash provided by operating activities less purchases of property and equipment and capitalized software development costs. We believe free cash flow is an important liquidity measure of the cash that is available (if any), after purchases of property and equipment and capitalized software development costs, for investment in our business and to make acquisitions. We believe that free cash flow is useful as a liquidity measure because it measures our ability to generate cash. We define unlevered free cash flow as free cash flow plus cash paid for interest and other financing costs. We believe unlevered free cash flow is useful as a liquidity measure as it measures the cash that is available to invest in our business and meet our current debt obligations and future financing needs. However, given our debt obligations, non-cancelable commitments and other contractual obligations, unlevered free cash flow does not represent residual cash flow available for discretionary expenses.
Non-GAAP Income from Operations and Non-GAAP Operating Margin: We define these non-GAAP financial measures as their respective GAAP measures, excluding the effect of stock-based compensation, acquisition-related expenses, restructuring expenses, costs related to the intra-entity asset transfers resulting from the internal restructuring of legal entities, and amortization of acquired intangible assets. Acquisition-related expenses include transaction and integration expenses, as well as costs related to the intercompany transfer of acquired intellectual property. Restructuring expenses include non-ordinary course severance, employee related benefits, and other charges. We believe that the exclusion of these expenses provides for a useful comparison of our operating results to prior periods and to our peer companies, which commonly exclude restructuring expenses.
Non-GAAP Net Income and Non-GAAP Earnings Per Share: We define non-GAAP net income as GAAP net loss, excluding the effect of stock-based compensation, acquisition-related expenses, restructuring expenses and amortization of acquired intangible assets, including the applicable tax impacts. In addition, we exclude the tax impact and related
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costs of intra-entity asset transfers resulting from the internal restructuring of legal entities as well as deferred income tax benefits recognized in connection with acquisitions. We use non-GAAP net income to calculate non-GAAP earnings per share.
Non-GAAP Gross Profit and Non-GAAP Gross Margin: We define non-GAAP gross profit as GAAP gross profit, excluding the effect of stock-based compensation and amortization of acquired intangible assets. Non-GAAP gross margin is defined as non-GAAP gross profit as a percentage of revenue.
Non-GAAP Sales and Marketing Expense, Non-GAAP Research and Development Expense and Non-GAAP General and Administrative Expense: We define these non-GAAP measures as their respective GAAP measures, excluding stock-based compensation, acquisition-related expenses and costs related to intra-entity asset transfers resulting from the internal restructuring of legal entities.
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TENABLE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| (in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
| Revenue | $ | 227,088 | $ | 201,529 | $ | 664,290 | $ | 585,404 | |||||||||||||||
Cost of revenue(1) | 50,499 | 45,754 | 148,229 | 134,774 | |||||||||||||||||||
| Gross profit | 176,589 | 155,775 | 516,061 | 450,630 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
Sales and marketing(1) | 99,083 | 94,759 | 300,037 | 289,750 | |||||||||||||||||||
Research and development(1) | 48,020 | 37,052 | 136,896 | 113,080 | |||||||||||||||||||
General and administrative(1) | 31,569 | 31,877 | 92,889 | 85,614 | |||||||||||||||||||
| Restructuring | — | — | 6,070 | — | |||||||||||||||||||
| Total operating expenses | 178,672 | 163,688 | 535,892 | 488,444 | |||||||||||||||||||
| Loss from operations | (2,083) | (7,913) | (19,831) | (37,814) | |||||||||||||||||||
| Interest income | 5,989 | 7,662 | 17,587 | 19,323 | |||||||||||||||||||
| Interest expense | (8,148) | (8,119) | (24,333) | (23,208) | |||||||||||||||||||
| Other income (expense), net | 359 | (6,502) | (858) | (7,993) | |||||||||||||||||||
| Loss before income taxes | (3,883) | (14,872) | (27,435) | (49,692) | |||||||||||||||||||
| Provision for income taxes | 5,328 | 693 | 10,734 | 6,944 | |||||||||||||||||||
| Net loss | $ | (9,211) | $ | (15,565) | $ | (38,169) | $ | (56,636) | |||||||||||||||
| Net loss per share, basic and diluted | $ | (0.08) | $ | (0.13) | $ | (0.32) | $ | (0.49) | |||||||||||||||
| Weighted-average shares used to compute net loss per share, basic and diluted | 119,169 | 115,954 | 118,466 | 114,967 | |||||||||||||||||||
_______________
(1) Includes stock-based compensation as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Cost of revenue | $ | 3,216 | $ | 3,011 | $ | 9,486 | $ | 8,542 | |||||||||||||||
| Sales and marketing | 15,941 | 15,805 | 47,517 | 46,622 | |||||||||||||||||||
| Research and development | 12,435 | 9,242 | 35,395 | 27,871 | |||||||||||||||||||
| General and administrative | 10,092 | 8,777 | 30,403 | 25,777 | |||||||||||||||||||
| Total stock-based compensation | $ | 41,684 | $ | 36,835 | $ | 122,801 | $ | 108,812 | |||||||||||||||
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TENABLE HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
| September 30, 2024 | December 31, 2023 | ||||||||||
| (in thousands, except per share data) | (unaudited) | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 312,207 | $ | 237,132 | |||||||
Short-term investments | 236,242 | 236,840 | |||||||||
Accounts receivable (net of allowance for doubtful accounts of $971 and $470 at September 30, 2024 and December 31, 2023, respectively) | 192,648 | 220,060 | |||||||||
| Deferred commissions | 49,858 | 49,559 | |||||||||
| Prepaid expenses and other current assets | 52,575 | 61,882 | |||||||||
| Total current assets | 843,530 | 805,473 | |||||||||
| Property and equipment, net | 39,780 | 45,436 | |||||||||
| Deferred commissions (net of current portion) | 64,405 | 72,394 | |||||||||
| Operating lease right-of-use assets | 32,127 | 34,835 | |||||||||
| Acquired intangible assets, net | 99,474 | 107,017 | |||||||||
| Goodwill | 541,292 | 518,539 | |||||||||
| Other assets | 13,811 | 23,177 | |||||||||
| Total assets | $ | 1,634,419 | $ | 1,606,871 | |||||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable and accrued expenses | $ | 17,833 | $ | 16,941 | |||||||
| Accrued compensation | 43,040 | 66,492 | |||||||||
| Deferred revenue | 583,940 | 580,779 | |||||||||
| Operating lease liabilities | 6,099 | 5,971 | |||||||||
| Other current liabilities | 6,205 | 5,655 | |||||||||
| Total current liabilities | 657,117 | 675,838 | |||||||||
| Deferred revenue (net of current portion) | 163,512 | 169,718 | |||||||||
| Term loan, net of issuance costs (net of current portion) | 357,334 | 359,281 | |||||||||
| Operating lease liabilities (net of current portion) | 43,706 | 48,058 | |||||||||
| Other liabilities | 8,195 | 7,632 | |||||||||
| Total liabilities | 1,229,864 | 1,260,527 | |||||||||
| Stockholders’ equity: | |||||||||||
Common stock (par value: $0.01; 500,000 shares authorized; 121,344 and 117,504 shares issued at September 30, 2024 and December 31, 2023, respectively) | 1,213 | 1,175 | |||||||||
| Additional paid-in capital | 1,330,517 | 1,185,100 | |||||||||
Treasury stock (at cost: 1,471 and 356 shares at September 30, 2024 and December 31, 2023, respectively) | (64,925) | (14,934) | |||||||||
| Accumulated other comprehensive income | 954 | 38 | |||||||||
| Accumulated deficit | (863,204) | (825,035) | |||||||||
| Total stockholders’ equity | 404,555 | 346,344 | |||||||||
| Total liabilities and stockholders’ equity | $ | 1,634,419 | $ | 1,606,871 | |||||||
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TENABLE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
| Nine Months Ended September 30, | |||||||||||
| (in thousands) | 2024 | 2023 | |||||||||
| Cash flows from operating activities: | |||||||||||
| Net loss | $ | (38,169) | $ | (56,636) | |||||||
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 24,434 | 18,900 | |||||||||
| Stock-based compensation | 122,801 | 108,812 | |||||||||
| Net accretion of discounts and amortization of premiums on short-term investments | (6,141) | (5,903) | |||||||||
| Amortization of debt issuance costs | 1,003 | 941 | |||||||||
| (Gain) loss on other investments | (1,452) | 5,000 | |||||||||
| Restructuring | 4,528 | — | |||||||||
| Other | 4,128 | 1,800 | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | 26,911 | 9,084 | |||||||||
| Prepaid expenses and other assets | 29,868 | 17,524 | |||||||||
| Accounts payable, accrued expenses and accrued compensation | (22,921) | 447 | |||||||||
| Deferred revenue | (3,153) | 16,856 | |||||||||
| Other current and noncurrent liabilities | (5,480) | (5,475) | |||||||||
| Net cash provided by operating activities | 136,357 | 111,350 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Purchases of property and equipment | (1,924) | (1,299) | |||||||||
| Capitalized software development costs | (5,930) | (4,707) | |||||||||
| Purchases of short-term investments | (227,210) | (217,239) | |||||||||
| Sales and maturities of short-term investments | 234,865 | 242,864 | |||||||||
| Proceeds from other investments | 3,512 | — | |||||||||
| Purchases of other investments | (1,250) | — | |||||||||
| Business combinations, net of cash acquired | (29,162) | — | |||||||||
| Net cash (used in) provided by investing activities | (27,099) | 19,619 | |||||||||
| Cash flows from financing activities: | |||||||||||
| Payments on term loan | (2,813) | (2,813) | |||||||||
| Proceeds from loan agreement | — | 424 | |||||||||
| Proceeds from stock issued in connection with the employee stock purchase plan | 16,262 | 16,224 | |||||||||
| Proceeds from the exercise of stock options | 4,798 | 2,421 | |||||||||
| Purchase of treasury stock | (49,991) | — | |||||||||
| Other financing activities | — | (213) | |||||||||
| Net cash (used in) provided by financing activities | (31,744) | 16,043 | |||||||||
| Effect of exchange rate changes on cash and cash equivalents and restricted cash | (2,439) | (2,562) | |||||||||
| Net increase in cash and cash equivalents and restricted cash | 75,075 | 144,450 | |||||||||
| Cash and cash equivalents and restricted cash at beginning of period | 237,132 | 300,866 | |||||||||
| Cash and cash equivalents and restricted cash at end of period | $ | 312,207 | $ | 445,316 | |||||||
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TENABLE HOLDINGS, INC.
REVENUE COMPONENTS AND RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(unaudited)
| Revenue | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
| Subscription revenue | $ | 208,554 | $ | 183,268 | $ | 608,727 | $ | 531,133 | |||||||||||||||
| Perpetual license and maintenance revenue | 11,769 | 12,200 | 35,941 | 36,535 | |||||||||||||||||||
| Professional services and other revenue | 6,765 | 6,061 | 19,622 | 17,736 | |||||||||||||||||||
Revenue(1) | $ | 227,088 | $ | 201,529 | $ | 664,290 | $ | 585,404 | |||||||||||||||
_______________
(1) Recurring revenue, which includes revenue from subscription arrangements for software (both recognized ratably over the subscription term and upon delivery) and cloud-based solutions and maintenance associated with perpetual licenses, represented 96% of revenue in the three and nine months ended September 30, 2024 and 95% of revenue in the three and nine months ended September 30, 2023.
| Calculated Current Billings | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
| Revenue | $ | 227,088 | $ | 201,529 | $ | 664,290 | $ | 585,404 | |||||||||||||||
| Deferred revenue (current), end of period | 583,940 | 518,372 | 583,940 | 518,372 | |||||||||||||||||||
Deferred revenue (current), beginning of period(1) | (562,587) | (495,199) | (580,887) | (502,115) | |||||||||||||||||||
| Calculated current billings | $ | 248,441 | $ | 224,702 | $ | 667,343 | $ | 601,661 | |||||||||||||||
________________
(1) Deferred revenue (current), beginning of period for the nine months ended September 30, 2024 includes $0.1 million related to acquired deferred revenue.
| Remaining Performance Obligations | September 30, | ||||||||||
| (in thousands) | 2024 | 2023 | |||||||||
| Remaining performance obligations, short-term | $ | 592,351 | $ | 528,367 | |||||||
| Remaining performance obligations, long-term | 179,210 | 168,817 | |||||||||
| Remaining performance obligations | $ | 771,561 | $ | 697,184 | |||||||
| Free Cash Flow and Unlevered Free Cash Flow | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
| Net cash provided by operating activities | $ | 54,607 | $ | 42,411 | $ | 136,357 | $ | 111,350 | |||||||||||||||
| Purchases of property and equipment | (733) | (201) | (1,924) | (1,299) | |||||||||||||||||||
| Capitalized software development costs | (1,163) | (1,894) | (5,930) | (4,707) | |||||||||||||||||||
Free cash flow(1) | 52,711 | 40,316 | 128,503 | 105,344 | |||||||||||||||||||
| Cash paid for interest and other financing costs | 8,055 | 7,843 | 23,505 | 26,786 | |||||||||||||||||||
Unlevered free cash flow(1) | $ | 60,766 | $ | 48,159 | $ | 152,008 | $ | 132,130 | |||||||||||||||
________________
(1) Free cash flow and unlevered free cash flow for the periods presented were impacted by:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
| Employee stock purchase plan activity | $ | (3,653) | $ | (2,236) | $ | (6,283) | $ | (2,507) | |||||||||||||||
| Acquisition-related expenses | (663) | (571) | (1,326) | (830) | |||||||||||||||||||
| Restructuring | (492) | — | (5,911) | — | |||||||||||||||||||
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| Non-GAAP Income from Operations and Non-GAAP Operating Margin | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
| (dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
| Loss from operations | $ | (2,083) | $ | (7,913) | $ | (19,831) | $ | (37,814) | |||||||||||||||
| Stock-based compensation | 41,684 | 36,835 | 122,801 | 108,812 | |||||||||||||||||||
| Acquisition-related expenses | 360 | 4,598 | 1,284 | 4,728 | |||||||||||||||||||
| Restructuring | — | — | 6,070 | — | |||||||||||||||||||
| Amortization of acquired intangible assets | 5,014 | 3,055 | 14,443 | 9,208 | |||||||||||||||||||
| Non-GAAP income from operations | $ | 44,975 | $ | 36,575 | $ | 124,767 | $ | 84,934 | |||||||||||||||
| Operating margin | (1) | % | (4) | % | (3) | % | (6) | % | |||||||||||||||
| Non-GAAP operating margin | 20 | % | 18 | % | 19 | % | 15 | % | |||||||||||||||
| Non-GAAP Net Income and Non-GAAP Earnings Per Share | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
| (in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
| Net loss | $ | (9,211) | $ | (15,565) | $ | (38,169) | $ | (56,636) | |||||||||||||||
| Stock-based compensation | 41,684 | 36,835 | 122,801 | 108,812 | |||||||||||||||||||
Tax impact of stock-based compensation(1) | 1,528 | (1,207) | 1,626 | 1,046 | |||||||||||||||||||
Acquisition-related expenses(2) | 360 | 4,598 | 1,284 | 4,728 | |||||||||||||||||||
Restructuring(2) | — | — | 6,070 | — | |||||||||||||||||||
Amortization of acquired intangible assets(3) | 5,014 | 3,055 | 14,443 | 9,208 | |||||||||||||||||||
| Tax impact of acquisitions | (52) | (48) | (130) | (161) | |||||||||||||||||||
| Non-GAAP net income | $ | 39,323 | $ | 27,668 | $ | 107,925 | $ | 66,997 | |||||||||||||||
Net loss per share, diluted | $ | (0.08) | $ | (0.13) | $ | (0.32) | $ | (0.49) | |||||||||||||||
| Stock-based compensation | 0.35 | 0.32 | 1.04 | 0.94 | |||||||||||||||||||
Tax impact of stock-based compensation(1) | 0.01 | (0.01) | 0.01 | 0.01 | |||||||||||||||||||
Acquisition-related expenses(2) | 0.01 | 0.04 | 0.01 | 0.04 | |||||||||||||||||||
Restructuring(2) | — | — | 0.05 | — | |||||||||||||||||||
Amortization of acquired intangible assets(3) | 0.04 | 0.02 | 0.12 | 0.08 | |||||||||||||||||||
| Tax impact of acquisitions | — | — | — | — | |||||||||||||||||||
Adjustment to diluted earnings per share(4) | (0.01) | (0.01) | (0.03) | (0.02) | |||||||||||||||||||
| Non-GAAP earnings per share, diluted | $ | 0.32 | $ | 0.23 | $ | 0.88 | $ | 0.56 | |||||||||||||||
Weighted-average shares used to compute GAAP net loss per share, diluted | 119,169 | 115,954 | 118,466 | 114,967 | |||||||||||||||||||
| Weighted-average shares used to compute non-GAAP earnings per share, diluted | 123,288 | 121,473 | 123,206 | 120,273 | |||||||||||||||||||
________________
(1) The tax impact of stock-based compensation is based on the tax treatment for the applicable tax jurisdictions.
(2) The tax impact of acquisition-related expenses and restructuring are not material.
(3) The tax impact of the amortization of acquired intangible assets is included in the tax impact of acquisitions.
(4) An adjustment to reconcile GAAP net loss per share, which excludes potentially dilutive shares, to non-GAAP earnings per share, which includes potentially dilutive shares.
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| Non-GAAP Gross Profit and Non-GAAP Gross Margin | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
| (dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
| Gross profit | $ | 176,589 | $ | 155,775 | $ | 516,061 | $ | 450,630 | |||||||||||||||
| Stock-based compensation | 3,216 | 3,011 | 9,486 | 8,542 | |||||||||||||||||||
| Amortization of acquired intangible assets | 5,014 | 3,055 | 14,443 | 9,208 | |||||||||||||||||||
| Non-GAAP gross profit | $ | 184,819 | $ | 161,841 | $ | 539,990 | $ | 468,380 | |||||||||||||||
| Gross margin | 78 | % | 77 | % | 78 | % | 77 | % | |||||||||||||||
| Non-GAAP gross margin | 81 | % | 80 | % | 81 | % | 80 | % | |||||||||||||||
| Non-GAAP Sales and Marketing Expense | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
| (dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
| Sales and marketing expense | $ | 99,083 | $ | 94,759 | $ | 300,037 | $ | 289,750 | |||||||||||||||
| Less: Stock-based compensation | 15,941 | 15,805 | 47,517 | 46,622 | |||||||||||||||||||
| Less: Acquisition-related expenses | 3 | — | 52 | — | |||||||||||||||||||
| Non-GAAP sales and marketing expense | $ | 83,139 | $ | 78,954 | $ | 252,468 | $ | 243,128 | |||||||||||||||
| Non-GAAP sales and marketing expense % of revenue | 37 | % | 39 | % | 38 | % | 42 | % | |||||||||||||||
| Non-GAAP Research and Development Expense | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
| (dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
| Research and development expense | $ | 48,020 | $ | 37,052 | $ | 136,896 | $ | 113,080 | |||||||||||||||
| Less: Stock-based compensation | 12,435 | 9,242 | 35,395 | 27,871 | |||||||||||||||||||
| Less: Acquisition-related expenses | — | — | (20) | — | |||||||||||||||||||
| Non-GAAP research and development expense | $ | 35,585 | $ | 27,810 | $ | 101,521 | $ | 85,209 | |||||||||||||||
| Non-GAAP research and development expense % of revenue | 16 | % | 14 | % | 15 | % | 15 | % | |||||||||||||||
| Non-GAAP General and Administrative Expense | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
| (dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
| General and administrative expense | $ | 31,569 | $ | 31,877 | $ | 92,889 | $ | 85,614 | |||||||||||||||
| Less: Stock-based compensation | 10,092 | 8,777 | 30,403 | 25,777 | |||||||||||||||||||
| Less: Acquisition-related expenses | 357 | 4,598 | 1,252 | 4,728 | |||||||||||||||||||
| Non-GAAP general and administrative expense | $ | 21,120 | $ | 18,502 | $ | 61,234 | $ | 55,109 | |||||||||||||||
| Non-GAAP general and administrative expense % of revenue | 9 | % | 9 | % | 9 | % | 9 | % | |||||||||||||||
The following adjustments to reconcile forecasted non-GAAP income from operations, non-GAAP net income, non-GAAP earnings per share, free cash flow and unlevered free cash flow are subject to a number of uncertainties and
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assumptions, each of which are inherently difficult to forecast. As a result, actual adjustments and GAAP results may differ materially.
| Forecasted Non-GAAP Income from Operations | Three Months Ending December 31, 2024 | Year Ending December 31, 2024 | |||||||||||||||||||||
| (in millions) | Low | High | Low | High | |||||||||||||||||||
| Forecasted income (loss) from operations | $ | 0.6 | $ | 2.6 | $ | (19.2) | $ | (17.2) | |||||||||||||||
| Forecasted stock-based compensation | 41.3 | 41.3 | 164.1 | 164.1 | |||||||||||||||||||
| Forecasted acquisition-related expenses | — | — | 1.3 | 1.3 | |||||||||||||||||||
| Forecasted restructuring | — | — | 6.1 | 6.1 | |||||||||||||||||||
| Forecasted amortization of acquired intangible assets | 5.1 | 5.1 | 19.5 | 19.5 | |||||||||||||||||||
| Forecasted non-GAAP income from operations | $ | 47.0 | $ | 49.0 | $ | 171.8 | $ | 173.8 | |||||||||||||||
| Forecasted Non-GAAP Net Income and Non-GAAP Earnings Per Share | Three Months Ending December 31, 2024 | Year Ending December 31, 2024 | |||||||||||||||||||||
| (in millions, except per share data) | Low | High | Low | High | |||||||||||||||||||
Forecasted net loss(1) | $ | (6.2) | $ | (4.2) | $ | (44.4) | $ | (42.4) | |||||||||||||||
| Forecasted stock-based compensation | 41.3 | 41.3 | 164.1 | 164.1 | |||||||||||||||||||
| Forecasted tax impact of stock-based compensation | 1.9 | 1.9 | 3.5 | 3.5 | |||||||||||||||||||
| Forecasted acquisition-related expenses | — | — | 1.3 | 1.3 | |||||||||||||||||||
| Forecasted restructuring | — | — | 6.1 | 6.1 | |||||||||||||||||||
| Forecasted amortization of acquired intangible assets | 5.1 | 5.1 | 19.5 | 19.5 | |||||||||||||||||||
| Forecasted tax impact of acquisitions | (0.1) | (0.1) | (0.2) | (0.2) | |||||||||||||||||||
| Forecasted non-GAAP net income | $ | 42.0 | $ | 44.0 | $ | 149.9 | $ | 151.9 | |||||||||||||||
Forecasted net loss per share, diluted(1) | $ | (0.05) | $ | (0.04) | $ | (0.37) | $ | (0.36) | |||||||||||||||
| Forecasted stock-based compensation | 0.34 | 0.34 | 1.38 | 1.38 | |||||||||||||||||||
| Forecasted tax impact of stock-based compensation | 0.02 | 0.02 | 0.03 | 0.03 | |||||||||||||||||||
| Forecasted acquisition-related expenses | — | — | 0.01 | 0.01 | |||||||||||||||||||
| Forecasted restructuring | — | — | 0.05 | 0.05 | |||||||||||||||||||
| Forecasted amortization of acquired intangible assets | 0.04 | 0.04 | 0.16 | 0.16 | |||||||||||||||||||
| Forecasted tax impact of acquisitions | — | — | — | — | |||||||||||||||||||
Adjustment to diluted earnings per share(2) | (0.02) | (0.01) | (0.05) | (0.04) | |||||||||||||||||||
| Forecasted non-GAAP earnings per share, diluted | $ | 0.33 | $ | 0.35 | $ | 1.21 | $ | 1.23 | |||||||||||||||
| Forecasted weighted-average shares used to compute GAAP net loss per share, diluted | 120.0 | 120.0 | 119.0 | 119.0 | |||||||||||||||||||
Forecasted weighted-average shares used to compute non-GAAP earnings per share, diluted | 125.5 | 125.5 | 123.5 | 123.5 | |||||||||||||||||||
________________
(1) The forecasted GAAP net loss assumes income tax expense of $4.9 million and $15.6 million in the three months and year ending December 31, 2024, respectively.
(2) Adjustment to reconcile GAAP net loss per share, which excludes potentially dilutive shares, to non-GAAP earnings per share, which includes potentially dilutive shares.
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| Forecasted Free Cash Flow and Unlevered Free Cash Flow | Year Ending December 31, 2024 | ||||||||||
| (in millions) | Low | High | |||||||||
| Forecasted net cash provided by operating activities | $ | 206.7 | $ | 216.7 | |||||||
| Forecasted purchases of property and equipment | (5.9) | (5.9) | |||||||||
| Forecasted capitalized software development costs | (6.7) | (6.7) | |||||||||
| Forecasted free cash flow | 194.1 | 204.1 | |||||||||
| Forecasted cash paid for interest and other financing costs | 30.9 | 30.9 | |||||||||
| Forecasted unlevered free cash flow | $ | 225.0 | $ | 235.0 | |||||||
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