Kaltura, Inc. (“Kaltura” or the “Company”), the video experience
cloud, today announced financial results for the first quarter
ended March 31, 2023, as well as outlook for the second
quarter and full year 2023.
"We met our revenue and Adjusted EBITDA targets for the first
quarter and are reaffirming our expectation of reaching
cash-flow-from-operations break-even during 2024, and posting a
positive Adjusted EBITDA for the full year of 2024,” said Ron
Yekutiel, Kaltura Co-founder, Chairman, and CEO. “Though the
industry headwinds experienced in 2022 are still present, we are
encouraged to see in the first quarter early indicators of improved
market demand translating to year-over-year growth in salesforce
productivity and new bookings. Our expanding product portfolio is
encouraging companies to consolidate around Kaltura, especially in
the current financial climate, which has resulted in an increase in
our average deal size."
First Quarter
2023 Financial Highlights:
- Revenue for the first quarter of 2023 was
$43.3 million, an increase of 4% compared to $41.7 million for the
first quarter of 2022.
- Subscription Revenue for the first quarter of
2023 was $40.4 million, an increase of 9%
compared to $37.0 million for the first quarter of 2022.
- Annualized Recurring Revenue (ARR) for the
first quarter of 2023 was $159.6 million, an
increase of 8% compared to $147.7 million for the first quarter of
2022.
- GAAP Gross profit for
the first quarter of 2023 was $27.3 million, representing a gross
margin of 63% compared to a GAAP gross profit of $26.3 million and
gross margin of 63% for the first quarter of 2022.
- Non-GAAP Gross
profit for the first quarter of 2023 was $27.7
million, representing a non-GAAP gross margin of 64%, compared to a
non-GAAP gross profit of $26.8 million and non-GAAP gross margin of
64% for the first quarter of 2022.
- GAAP Operating loss was
$12.0 million for the first quarter of 2023, compared to an
operating loss of $14.7 million for the first quarter of 2022.
- Non-GAAP Operating loss was
$3.5 million for the first quarter of 2023, compared to a non-GAAP
operating loss of $8.8 million for the first quarter of 2022.
- GAAP Net loss was $12.8 million or $0.09
per diluted share for the first quarter of 2023, compared to a GAAP
net loss of $16.9 million, or $0.13 per diluted share, for the
first quarter of 2022.
- Non-GAAP Net loss was $4.4 million or
$0.03 per diluted share for the first quarter of 2023, compared to
a non-GAAP net loss of $11.0 million, or $0.09 per diluted share,
for the first quarter of 2022.
- Adjusted EBITDA was negative $2.7 million
for the first quarter of 2023, compared to adjusted EBITDA of
negative $8.4 million for the first quarter of 2022.
- Net Cash Used in Operating Activities was $7.4
million for the first quarter of 2023, compared to $19.6 million
for the first quarter of 2022.
First Quarter
2023 Business Highlights:
- Year-over-year increase in new ARR
bookings for the second quarter in a row, following five prior
quarters of year-over-year declines.
- Increased ratio of new bookings
from new customers versus existing customers (upsells).
- Continued increase in average deal
size driven by customers consolidating around Kaltura as a single
vendor.
- Closed five, seven-digit deals
(insurance, banking, tech and media companies).
- Continued to enhance and increase the footprint of Events
Platform, Webinars product, API’s and Developer tools, and Cloud TV
front-end experience applications.
Financial Outlook:
For the second quarter of 2023, Kaltura
expects:
- Subscription Revenue to grow by 5%-7%
year-over-year to between $39.9 million and $40.6 million.
- Total Revenue to grow by 2%-4% year-over-year
to between $42.8 million and $43.7 million.
- Adjusted EBITDA to be negative in the range of
$1.5 million to $2.5 million.
For the full year ending December 31, 2023,
Kaltura expects:
- Subscription Revenue to grow by 4%-6%
year-over-year to between $158.6 million and $161.7 million.
- Total Revenue to grow by 0%-2% year-over-year
to between $168.8 million and $172.2 million.
- Adjusted EBITDA to be negative in the range of
$5.0 million to $8.0 million.
The guidance provided above contains
forward-looking statements and actual results may differ
materially. Refer to “Forward-Looking Statements” below for
information on the factors that could cause our actual results to
differ materially from these forward-looking statements. Kaltura
has not provided a quantitative reconciliation of forecasted
Adjusted EBITDA to forecasted GAAP net loss within this press
release because the Company is unable, without making unreasonable
efforts, to calculate certain reconciling items with confidence.
The reconciliation for Adjusted EBITDA includes but is not limited
to the following items: stock-based compensation expenses,
depreciation, amortization, financial expenses (income), net,
provision for income tax, and other non-recurring operating
expenses. These items, which could materially affect the
computation of forward-looking GAAP net loss, are inherently
uncertain and depend on various factors, some of which are outside
of the Company’s control.
Additional information on Kaltura’s reported
results, including a reconciliation of the non-GAAP financial
measures to their most comparable GAAP measures, is included in the
financial tables below.
Conference Call
Kaltura will host a conference call today on
May 9, 2023 to review its first quarter 2023 financial results
and to discuss its financial outlook.
|
Time: |
8:00 a.m. ET |
|
|
United States/Canada Toll
Free: |
1-888-886-7786 |
|
|
International Toll: |
+1-416-764-8658 |
|
A live webcast
will also be available in the Investor Relations section of
Kaltura’s website at:
https://investors.kaltura.com/news-and-events/events
A replay of the webcast will be available in the
Investor Relations section of the company’s web site approximately
two hours after the conclusion of the call and remain available for
approximately 30 calendar days.
About Kaltura
Kaltura’s mission is to power any video
experience for any organization. Our Video Experience Cloud offers
live, real-time, and on-demand video products for enterprises of
all industries, as well as specialized industry solutions,
currently for educational institutions and for media and telecom
companies. Underlying our products and solutions is a broad set of
Media Services that are also used by other cloud platforms and
companies to power video experiences and workflows for their own
products. Kaltura’s Video Experience Cloud is used by leading
brands reaching millions of users, at home, at school and at work,
for communication, collaboration, training, marketing, sales,
customer care, teaching, learning, virtual events, and
entertainment experiences.
Investor Contacts:KalturaYaron GarmaziChief
Financial OfficerIR@Kaltura.com
Sapphire Investor RelationsErica Mannion and Michael Funari+1
617 542 6180IR@Kaltura.com
Media Contacts:KalturaLisa
Bennettpr.team@kaltura.com
Headline MediaRaanan Loewraanan@headline.media+1 347 897
9276
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. All statements contained in this press release
that do not relate to matters of historical fact should be
considered forward-looking statements, including but not limited
to, statements regarding our future financial and operating
performance, including our guidance; our business strategy, plans
and objectives for future operations, including our expectation of
reaching cash-flow-from-operations break-even during 2024 and
posting a positive Adjusted EBITDA for the full year 2024; the
expected effect of new product releases on our business and
financial performance; and general business conditions.
In some cases, you can identify forward-looking
statements by terminology such as “aim,” “anticipate,” “assume,”
“believe,” “contemplate,” “continue,” “could,” “due,” “estimate,”
“expect,” “goal,” “intend,” “may,” “objective,” “plan,” “predict,”
“potential,” “positioned,” “seek,” “should,” “target,” “will,”
“would” and other similar expressions that are predictions of or
indicate future events and future trends, or the negative of these
terms or other comparable terminology, although not all
forward-looking statements contain these words. Any forward-looking
statements contained herein are based on our historical performance
and our current plans, estimates and expectations and are not a
representation that such plans, estimates, or expectations will be
achieved. These forward-looking statements represent our
expectations as of the date of this press release. Subsequent
events may cause these expectations to change, and we disclaim any
obligation to update the forward-looking statements in the future,
except as required by law. These forward-looking statements are
subject to known and unknown risks and uncertainties that may cause
actual results to differ materially from our current expectations.
Important factors that could cause actual results to differ
materially from those anticipated in our forward-looking statements
include, but are not limited to, our ability to manage and sustain
our rapid growth; our ability to achieve and maintain
profitability; the evolution of the markets for our offerings; the
quarterly fluctuation in our results of operations; our ability to
retain our customers; our ability to keep pace with technological
and competitive developments; our ability to maintain the
interoperability of our offerings across devices, operating systems
and third-party applications; our reliance on third parties; our
ability to retain our key personnel; risks related to our
international operations; our ability to successfully execute or
achieve the benefits of our cost-reduction and re-organization plan
and other cost saving measures; risks relating to event of failure
of any of the financial institutions where we maintain our cash and
cash equivalents (such as Silicon Valley Bank (SVB) and therefore
our ability to access uninsured funds in a timely manner or at all;
risks associated with the Israeli government’s extensive
legislation proceedings addressing Israel’s judicial system and the
concerns that the proposed changes may negatively impact the
business environment in Israel, and the other risks under the
caption “Risk Factors” in our Annual Report on Form 10-K for the
fiscal year ended December 31, 2022, filed with the Securities and
Exchange Commission (“SEC”), as such factors are updated in our
Quarterly Report on Form 10-Q for the quarterly period ended March
31, 2023 and may be updated from time to time in our other filings
with the SEC, which are accessible on the SEC’s website at
www.sec.gov and the Investor Relations page of our website at
investors.kaltura.com.
Non-GAAP Financial Measures
Kaltura has provided in this press release and
the accompanying tables measures of financial information that have
not been prepared in accordance with generally accepted accounting
principles in the U.S. ("GAAP"), including non-GAAP gross profit,
non-GAAP gross margin (calculated as a percentage of revenue),
non-GAAP research and development expenses, non-GAAP sales and
marketing expenses, non-GAAP general and administrative expenses,
non-GAAP operating loss, non-GAAP operating margin (calculated as a
percentage of revenue), non-GAAP net loss, non-GAAP net loss per
share and Adjusted EBITDA. Kaltura defines these non-GAAP
financial measures as the respective corresponding GAAP measure,
adjusted for, as applicable: (1) stock-based compensation; (2) the
amortization of acquired intangibles; (3) facility exit and
transition costs; and (4) restructuring charges. Kaltura defines
EBITDA as net profit (loss) before financial expenses, net,
provision for income taxes, and depreciation and amortization
expenses. Adjusted EBITDA is defined as EBITDA (as defined above),
adjusted for the impact of certain non-cash and other non-recurring
items that we believe are not indicative of our core operating
performance, such as non-cash stock-based compensation expenses and
other non-recurring operating expenses. We believe these non-GAAP
financial measures provide useful information to management and
investors regarding certain financial and business trends relating
to Kaltura’s financial condition and results of operations. These
non-GAAP metrics are a supplemental measure of our performance, are
not defined by or presented in accordance with GAAP, and should not
be considered in isolation or as an alternative to net profit
(loss) or any other performance measure prepared in accordance with
GAAP. Non-GAAP financial measures are presented because we believe
that they provide useful supplemental information to investors and
analysts regarding our operating performance and are frequently
used by these parties in evaluating companies in our industry. By
presenting these non-GAAP financial measures, we provide a basis
for comparison of our business operations between periods by
excluding items that we do not believe are indicative of our core
operating performance. We believe that investors’ understanding of
our performance is enhanced by including these non-GAAP financial
measures as a reasonable basis for comparing our ongoing results of
operations. Additionally, our management uses these non-GAAP
financial measures as supplemental measures of our performance
because they assist us in comparing the operating performance of
our business on a consistent basis between periods, as described
above. Although we use the non-GAAP financial measures described
above, such measures have significant limitations as analytical
tools and only supplement but do not replace, our financial
statements in accordance with GAAP. See the tables below regarding
reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP measures.
Key Financial and Operating
Metrics
Annualized Recurring Revenue. We use Annualized
Recurring Revenue (“ARR”) as a measure of our revenue trend and an
indicator of our future revenue opportunity from existing recurring
customer contracts. We calculate ARR by annualizing our recurring
revenue for the most recently completed fiscal quarter. Recurring
revenues are generated from SaaS and PaaS subscriptions, as well as
term licenses for software installed on the customer's premises
(“On-Prem”). For the SaaS and PaaS components, we calculate ARR by
annualizing the actual recurring revenue recognized for the latest
fiscal quarter. For the On-Prem component for which revenue
recognition is not ratable across the license term, we calculate
ARR for each contract by dividing the total contract value
(excluding professional services) as of the last day of the
specified period by the number of days in the contract term and
then multiplying by 365. Recurring revenue excludes revenue from
one-time professional services and setup fees. ARR is not adjusted
for the impact of any known or projected future customer
cancellations, upgrades or downgrades or price increases or
decreases. The amount of actual revenue that we recognize over any
12-month period is likely to differ from ARR at the beginning of
that period, sometimes significantly. This may occur due to new
bookings, cancellations, upgrades or downgrades, pending renewals,
foreign exchange rate fluctuations, professional services revenue
and acquisitions or divestitures. ARR should be viewed
independently of revenue as it is an operating metric and is not
intended to be a replacement or forecast of revenue. Our
calculation of ARR may differ from similarly titled metrics
presented by other companies.
Net Dollar Retention Rate. Our Net Dollar
Retention Rate, which we use to measure our success in retaining
and growing recurring revenue from our existing customers, compares
our recognized recurring revenue from a set of customers across
comparable periods. We calculate our Net Dollar Retention Rate for
a given period as the recognized recurring revenue from the latest
reported fiscal quarter from the set of customers whose revenue
existed in the reported fiscal quarter from the prior year (the
numerator), divided by recognized recurring revenue from such
customers for the same fiscal quarter in the prior year
(denominator). For annual periods, we report Net Dollar Retention
Rate as the arithmetic average of the Net Dollar Retention Rate for
all fiscal quarters included in the period. We consider
subdivisions of the same legal entity (for example, divisions of a
parent company or separate campuses that are part of the same state
university system) to be a single customer for purposes of
calculating our Net Dollar Retention Rate. Our calculation of Net
Dollar Retention Rate for any fiscal period includes the positive
recognized recurring revenue impacts of selling new services to
existing customers and the negative recognized recurring revenue
impacts of contraction and attrition among this set of customers.
Our Net Dollar Retention Rate may fluctuate as a result of a number
of factors, including the growing level of our revenue base, the
level of penetration within our customer base, expansion of
products and features, and our ability to retain our customers. Our
calculation of Net Dollar Retention Rate may differ from similarly
titled metrics presented by other companies.
Remaining Performance Obligations. Remaining
Performance Obligations represents the amount of contracted future
revenue that has not yet been delivered, including both
subscription and professional services revenues. Remaining
Performance Obligations consists of both deferred revenue and
contracted non-cancelable amounts that will be invoiced and
recognized in future periods. We expect to recognize 58% of our
Remaining Performance Obligations as revenue over the next 12
months, and the remainder thereafter, in each case, in accordance
with our revenue recognition policy; however, we cannot guarantee
that any portion of our Remaining Performance Obligations will be
recognized as revenue within the timeframe we expect or at all.
Consolidated Balance Sheets (U.S. dollars in
thousands) |
|
|
As of |
|
|
March 31, 2023 |
|
December 31, 2022 |
|
|
(Unaudited) |
|
|
ASSETS |
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
Cash and cash equivalents |
|
$ |
41,576 |
|
|
$ |
44,625 |
|
Marketable securities |
|
|
34,393 |
|
|
|
41,343 |
|
Trade receivables |
|
|
18,233 |
|
|
|
28,786 |
|
Prepaid expenses and other current assets |
|
|
8,077 |
|
|
|
7,521 |
|
Deferred contract acquisition and fulfillment costs, current |
|
|
10,685 |
|
|
|
10,759 |
|
|
|
|
|
|
Total current assets |
|
|
112,964 |
|
|
|
133,034 |
|
|
|
|
|
|
LONG-TERM ASSETS: |
|
|
|
|
Marketable securities |
|
|
1,024 |
|
|
|
— |
|
Property and equipment, net |
|
|
18,713 |
|
|
|
15,142 |
|
Other assets, noncurrent |
|
|
2,981 |
|
|
|
3,176 |
|
Deferred contract acquisition and fulfillment costs,
noncurrent |
|
|
20,536 |
|
|
|
21,691 |
|
Operating lease right-of-use assets |
|
|
17,444 |
|
|
|
20,814 |
|
Intangible assets, net |
|
|
1,077 |
|
|
|
1,244 |
|
Goodwill |
|
|
11,070 |
|
|
|
11,070 |
|
|
|
|
|
|
Total noncurrent assets |
|
|
72,845 |
|
|
|
73,137 |
|
|
|
|
|
|
TOTAL
ASSETS |
|
$ |
185,809 |
|
|
$ |
206,171 |
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
Current portion of long-term loans |
|
$ |
34,351 |
|
|
$ |
5,793 |
|
Trade payables |
|
|
8,214 |
|
|
|
9,437 |
|
Employees and payroll accruals |
|
|
12,479 |
|
|
|
14,884 |
|
Accrued expenses and other current liabilities |
|
|
16,854 |
|
|
|
16,527 |
|
Operating lease liabilities |
|
|
2,533 |
|
|
|
2,355 |
|
Deferred revenue, current |
|
|
50,490 |
|
|
|
59,841 |
|
|
|
|
|
|
Total current liabilities |
|
|
124,921 |
|
|
|
108,837 |
|
|
|
|
|
|
NONCURRENT LIABILITIES: |
|
|
|
|
Deferred revenue, noncurrent |
|
|
1,022 |
|
|
|
1,266 |
|
Long-term loans, net of current portion |
|
|
— |
|
|
|
30,004 |
|
Operating lease liabilities, noncurrent |
|
|
19,650 |
|
|
|
20,697 |
|
Other liabilities, noncurrent |
|
|
2,245 |
|
|
|
2,021 |
|
|
|
|
|
|
Total noncurrent
liabilities |
|
|
22,917 |
|
|
|
53,988 |
|
|
|
|
|
|
TOTAL
LIABILITIES |
|
$ |
147,838 |
|
|
$ |
162,825 |
|
STOCKHOLDERS' EQUITY: |
|
|
|
|
Common stock |
|
$ |
13 |
|
|
$ |
13 |
|
Treasury stock |
|
|
(4,881 |
) |
|
|
(4,881 |
) |
Additional paid-in
capital |
|
|
447,316 |
|
|
|
439,644 |
|
Accumulated other
comprehensive loss |
|
|
(553 |
) |
|
|
(301 |
) |
Accumulated deficit |
|
|
(403,924 |
) |
|
|
(391,129 |
) |
|
|
|
|
|
Total stockholders'
equity |
|
|
37,971 |
|
|
|
43,346 |
|
|
|
|
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
$ |
185,809 |
|
|
$ |
206,171 |
|
Consolidated Statements of Operations (U.S. dollars in
thousands, except for share data) |
|
|
Three Months EndedMarch 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
(Unaudited) |
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
Subscription |
|
$ |
40,392 |
|
|
$ |
37,017 |
Professional services |
|
|
2,881 |
|
|
|
4,698 |
|
|
|
|
|
Total revenue |
|
|
43,273 |
|
|
|
41,715 |
|
|
|
|
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
Subscription |
|
|
11,168 |
|
|
|
9,650 |
Professional services |
|
|
4,819 |
|
|
|
5,796 |
|
|
|
|
|
Total cost of revenue |
|
|
15,987 |
|
|
|
15,446 |
|
|
|
|
|
Gross profit |
|
|
27,286 |
|
|
|
26,269 |
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Research and development |
|
|
14,130 |
|
|
|
14,873 |
Sales and marketing |
|
|
12,071 |
|
|
|
14,616 |
General and
administrative |
|
|
12,100 |
|
|
|
11,438 |
Restructuring |
|
|
945 |
|
|
|
— |
|
|
|
|
|
Total operating expenses |
|
|
39,246 |
|
|
|
40,927 |
|
|
|
|
|
Operating loss |
|
|
11,960 |
|
|
|
14,658 |
|
|
|
|
|
Financial expenses (income),
net |
|
|
(1,785 |
) |
|
|
182 |
|
|
|
|
|
Loss before provision for
income taxes |
|
|
10,175 |
|
|
|
14,840 |
Provision for income
taxes |
|
|
2,620 |
|
|
|
2,086 |
|
|
|
|
|
Net loss |
|
$ |
12,795 |
|
|
$ |
16,926 |
|
|
|
|
|
Net loss per share
attributable to common stockholders, basic and diluted |
|
$ |
0.09 |
|
|
$ |
0.13 |
|
|
|
|
|
Weighted average number of
shares used in computing basic and diluted net loss per share
attributable to common stockholders |
|
|
135,087,949 |
|
|
|
127,832,785 |
Consolidated Statements of Operations (U.S. dollars in
thousands, except for share data) |
|
Stock-based
compensation included in above line items: |
|
|
Three Months Ended March 31, |
|
|
|
2023 |
|
|
2022 |
|
|
(Unaudited) |
|
|
|
|
|
Cost of revenue |
|
$ |
264 |
|
$ |
412 |
Research and development |
|
|
1,145 |
|
|
1,028 |
Sales and marketing |
|
|
772 |
|
|
926 |
General and administrative |
|
|
4,978 |
|
|
3,318 |
|
|
|
|
|
Total |
|
$ |
7,159 |
|
$ |
5,684 |
Revenue by
Segment (U.S. dollars in thousands): |
|
|
Three Months Ended March 31, |
|
|
|
2023 |
|
|
2022 |
|
|
(Unaudited) |
|
|
|
|
|
Enterprise, Education and
Technology |
|
$ |
31,330 |
|
$ |
29,727 |
Media and Telecom |
|
|
11,943 |
|
|
11,988 |
|
|
|
|
|
Total |
|
$ |
43,273 |
|
$ |
41,715 |
Gross
Profit by Segment (U.S. dollars in thousands): |
|
|
Three Months Ended March 31, |
|
|
|
2023 |
|
|
2022 |
|
|
(Unaudited) |
|
|
|
|
|
Enterprise, Education and
Technology |
|
$ |
22,789 |
|
$ |
20,766 |
Media and Telecom |
|
|
4,497 |
|
|
5,503 |
|
|
|
|
|
Total |
|
$ |
27,286 |
|
$ |
26,269 |
Consolidated Statement of Cash Flows (U.S. dollars in
thousands) |
|
|
Three Months Ended March 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
(Unaudited) |
Cash flows from operating
activities: |
|
|
|
|
Net loss |
|
$ |
(12,795 |
) |
|
$ |
(16,926 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
Depreciation and amortization |
|
|
1,009 |
|
|
|
615 |
|
Stock-based compensation expenses |
|
|
7,159 |
|
|
|
5,684 |
|
Amortization of deferred contract acquisition and fulfillment
costs |
|
|
2,970 |
|
|
|
2,443 |
|
Non-cash interest expenses (income), net |
|
|
(224 |
) |
|
|
39 |
|
Gain on foreign exchange |
|
|
(195 |
) |
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
|
Decrease (increase) in trade receivables |
|
|
10,553 |
|
|
|
(2,332 |
) |
Increase in prepaid expenses and other current assets and other
assets, noncurrent |
|
|
(764 |
) |
|
|
(594 |
) |
Increase in deferred contract acquisition and fulfillment
costs |
|
|
(1,642 |
) |
|
|
(1,653 |
) |
Decrease in trade payables |
|
|
(1,450 |
) |
|
|
(1,498 |
) |
Decrease in accrued expenses and other current liabilities |
|
|
(37 |
) |
|
|
(430 |
) |
Decrease in employees and payroll accruals |
|
|
(2,405 |
) |
|
|
(1,838 |
) |
Increase (decrease) in other liabilities, noncurrent |
|
|
406 |
|
|
|
(42 |
) |
Decrease in deferred revenue |
|
|
(9,595 |
) |
|
|
(3,140 |
) |
Operating lease right-of-use assets and lease liabilities, net |
|
|
(422 |
) |
|
|
82 |
|
|
|
|
|
|
Net cash used in operating activities |
|
|
(7,432 |
) |
|
|
(19,590 |
) |
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
|
Investment in available-for-sale marketable securities |
|
|
(2,924 |
) |
|
|
— |
|
Proceeds from maturities of available-for-sale marketable
securities |
|
|
9,236 |
|
|
|
— |
|
Investment in restricted bank deposit |
|
|
— |
|
|
|
(1,850 |
) |
Purchases of property and equipment |
|
|
(852 |
) |
|
|
(445 |
) |
Capitalized internal-use software |
|
|
(380 |
) |
|
|
(1,767 |
) |
|
|
|
|
|
Net cash provided by (used in) investing activities |
|
|
5,080 |
|
|
|
(4,062 |
) |
|
|
|
|
|
Cash flows from financing
activities: |
|
|
|
|
|
|
|
|
|
Repayment of long-term loans |
|
|
(1,500 |
) |
|
|
(750 |
) |
Principal payments on finance leases |
|
|
— |
|
|
|
(128 |
) |
Proceeds from exercise of stock options |
|
|
578 |
|
|
|
244 |
|
Payment of debt issuance costs |
|
|
— |
|
|
|
(125 |
) |
|
|
|
|
|
Net cash used in financing activities |
|
|
(922 |
) |
|
|
(759 |
) |
|
|
|
|
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash |
|
|
195 |
|
|
|
— |
|
|
|
|
|
|
Net decrease in cash, cash
equivalents and restricted cash |
|
$ |
(3,079 |
) |
|
$ |
(24,411 |
) |
Cash, cash equivalents and
restricted cash at the beginning of the period |
|
|
45,833 |
|
|
|
144,371 |
|
Cash, cash equivalents and
restricted cash at the end of the period |
|
$ |
42,754 |
|
|
$ |
119,960 |
|
Reconciliation from GAAP to Non-GAAP Results (U.S. dollars
in thousands; Unaudited) |
|
|
Three Months Ended March 31, |
|
|
|
2023 |
|
|
|
2022 |
|
Reconciliation of
gross profit and gross margin |
|
|
|
|
GAAP gross
profit |
|
$ |
27,286 |
|
|
$ |
26,269 |
|
Stock-based compensation expense |
|
|
264 |
|
|
|
412 |
|
Amortization of acquired intangibles |
|
|
104 |
|
|
|
104 |
|
Non-GAAP gross
profit |
|
$ |
27,654 |
|
|
$ |
26,785 |
|
GAAP gross
margin |
|
|
63 |
% |
|
|
63 |
% |
Non-GAAP gross
margin |
|
|
64 |
% |
|
|
64 |
% |
Reconciliation of
operating expenses |
|
|
|
|
GAAP research and
development expenses |
|
$ |
14,130 |
|
|
$ |
14,873 |
|
Stock-based compensation expense |
|
|
1,145 |
|
|
|
1,028 |
|
Amortization of acquired intangibles |
|
|
— |
|
|
|
— |
|
Non-GAAP research and
development expenses |
|
$ |
12,985 |
|
|
$ |
13,845 |
|
GAAP sales and
marketing |
|
$ |
12,071 |
|
|
$ |
14,616 |
|
Stock-based compensation expense |
|
|
772 |
|
|
|
926 |
|
Amortization of acquired intangibles |
|
|
60 |
|
|
|
109 |
|
Non-GAAP sales and
marketing expenses |
|
$ |
11,239 |
|
|
$ |
13,581 |
|
GAAP general and
administrative expenses |
|
$ |
12,100 |
|
|
$ |
11,438 |
|
Stock-based compensation expense |
|
|
4,978 |
|
|
|
3,318 |
|
Amortization of acquired intangibles |
|
|
— |
|
|
|
— |
|
Facility exit and transition costs1 |
|
|
154 |
|
|
|
— |
|
Non-GAAP general and
administrative expenses |
|
$ |
6,968 |
|
|
$ |
8,120 |
|
Reconciliation of
operating income (loss) and operating margin |
|
|
|
|
GAAP operating
loss |
|
$ |
11,960 |
|
|
$ |
14,658 |
|
Stock-based compensation expense |
|
|
7,159 |
|
|
|
5,684 |
|
Amortization of acquired intangibles |
|
|
164 |
|
|
|
213 |
|
Facility exit and transition costs1 |
|
|
154 |
|
|
|
— |
|
Restructuring2 |
|
|
945 |
|
|
|
— |
|
Non-GAAP operating
loss |
|
$ |
3,538 |
|
|
$ |
8,761 |
|
GAAP operating
margin |
|
(28 |
)% |
|
(35 |
)% |
Non-GAAP operating
margin |
|
(8 |
)% |
|
(21 |
)% |
Reconciliation of net
loss |
|
|
|
|
GAAP net loss
attributable to common stockholders |
|
$ |
12,795 |
|
|
$ |
16,926 |
|
Stock-based compensation expense |
|
|
7,159 |
|
|
|
5,684 |
|
Amortization of acquired intangibles |
|
|
164 |
|
|
|
213 |
|
Facility exit and transition costs1 |
|
|
154 |
|
|
|
— |
|
Restructuring2 |
|
|
945 |
|
|
|
— |
|
Non-GAAP net loss
attributable to common stockholders |
|
$ |
4,373 |
|
|
$ |
11,029 |
|
|
|
|
|
|
Non-GAAP net loss per
share - basic and diluted |
|
$ |
0.03 |
|
|
$ |
0.09 |
|
__________________1 Facility exit and transition costs for
the three months ended March 31, 2023 include costs associated with
moving to our temporary office in Israel.2 The three months ended
March 31, 2023, include one-time employee termination benefits
incurred in connection with our reorganization plan in January
2023.
Adjusted
EBITDA (U.S. dollars in thousands) |
|
Three Months Ended March 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
Net loss |
$ |
(12,795 |
) |
|
$ |
(16,926 |
) |
Financial expenses (income), net
(a) |
|
(1,785 |
) |
|
|
182 |
|
Provision for income taxes |
|
2,620 |
|
|
|
2,086 |
|
Depreciation and
amortization |
|
1,009 |
|
|
|
615 |
|
EBITDA |
|
(10,951 |
) |
|
|
(14,043 |
) |
Non-cash stock-based compensation
expense |
|
7,159 |
|
|
|
5,684 |
|
Facility exit and transition
costs (b) |
|
154 |
|
|
|
— |
|
Restructuring (c) |
|
945 |
|
|
|
— |
|
Adjusted
EBITDA |
$ |
(2,693 |
) |
|
$ |
(8,359 |
) |
(a) The three months ended March 31, 2023 and 2022, include $803
and $498, respectively, of interest expenses.
(b) Facility exit and transition costs for the three months
ended March 31, 2023 include costs associated with moving to
our temporary office in Israel.
(c) The three months ended March 31, 2023, include one-time
employee termination benefits incurred in connection with our
reorganization plan in January 2023.
Reported
KPIs |
|
|
March 31, |
|
|
|
2023 |
|
|
2022 |
|
|
(U.S. dollars, amounts in thousands) |
Annualized Recurring
Revenue |
|
$ |
159,582 |
|
$ |
147,705 |
Remaining Performance
Obligations |
|
$ |
167,425 |
|
$ |
171,223 |
|
|
Three Months Ended March 31, |
|
|
2023 |
|
2022 |
Net Dollar Retention
Rate |
|
102 |
% |
|
107 |
% |
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