☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 83-0731995 | |||||||||
(State or other jurisdiction of incorporation or organization) | Identification No.) | |||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading symbol | Name of each exchange on which registered | ||||||||||||
Common Stock, $0.001 par value per share | IAS | The NASDAQ Stock Market LLC | ||||||||||||
(Nasdaq Global Select Market) |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||||||||||||
Non-accelerated filer | ☒ | Smaller reporting company | ☐ | |||||||||||||
Emerging growth company | ☒ |
Page No. | ||||||||||||||||
PART I. | ||||||||||||||||
Item 1. | ||||||||||||||||
Item 2. | ||||||||||||||||
Item 3. | ||||||||||||||||
Item 4. | ||||||||||||||||
PART II. | ||||||||||||||||
Item 1. | ||||||||||||||||
Item 1A. | ||||||||||||||||
Item 2. | ||||||||||||||||
Item 3. | ||||||||||||||||
Item 4. | ||||||||||||||||
Item 5. | ||||||||||||||||
Item 6. | ||||||||||||||||
(IN THOUSANDS, EXCEPT SHARE DATA) | March 31, 2022 | December 31, 2021 | ||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 82,255 | $ | 73,210 | ||||||||||
Restricted cash | 78 | 70 | ||||||||||||
Accounts receivable, net | 53,956 | 53,028 | ||||||||||||
Unbilled receivables | 35,549 | 36,210 | ||||||||||||
Prepaid expenses and other current assets | 9,768 | 7,647 | ||||||||||||
Total current assets | 181,606 | 170,165 | ||||||||||||
Property and equipment, net | 1,378 | 1,413 | ||||||||||||
Internal use software, net | 18,808 | 18,100 | ||||||||||||
Intangible assets, net | 248,102 | 258,316 | ||||||||||||
Goodwill | 675,632 | 676,513 | ||||||||||||
Operating lease right-of-use assets | 20,150 | — | ||||||||||||
Deferred tax asset, net | 876 | 887 | ||||||||||||
Other long-term assets | 4,313 | 4,143 | ||||||||||||
Total assets | $ | 1,150,865 | $ | 1,129,537 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable and accrued expenses | $ | 47,684 | $ | 56,257 | ||||||||||
Due to related party | 97 | 74 | ||||||||||||
Deferred revenue | 370 | 160 | ||||||||||||
Operating lease liabilities, current | 5,772 | — | ||||||||||||
Total current liabilities | 53,923 | 56,491 | ||||||||||||
Accrued rent | — | 854 | ||||||||||||
Net deferred tax liability | 52,470 | 53,523 | ||||||||||||
Long-term debt | 242,914 | 242,798 | ||||||||||||
Operating lease liabilities, non-current | 21,878 | — | ||||||||||||
Other long-term liabilities | 1,639 | 8,681 | ||||||||||||
Total liabilities | 372,824 | 362,347 | ||||||||||||
Commitments and Contingencies (Note 15) | 0 | 0 | ||||||||||||
Stockholders’ Equity | ||||||||||||||
Preferred Stock, $0.001 par value, 50,000,000 shares authorized at March 31, 2022; 0 shares issued and outstanding at March 31, 2022 and December 31, 2021. | — | — | ||||||||||||
Common Stock, $0.001 par value, 500,000,000 shares authorized, 155,016,271 and 154,398,495 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively. | 155 | 154 | ||||||||||||
Additional paid-in-capital | 792,616 | 781,951 | ||||||||||||
Accumulated other comprehensive loss | (1,289) | (315) | ||||||||||||
Accumulated deficit | (13,441) | (14,600) | ||||||||||||
Total stockholders’ equity | 778,041 | 767,190 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 1,150,865 | $ | 1,129,537 |
(IN THOUSANDS, EXCEPT SHARE AND UNIT DATA) | June 30, 2021 | December 31, 2020 | ||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 73,234 | $ | 51,734 | ||||
Restricted cash | 75 | 187 | ||||||
Accounts receivable, net | 41,491 | 45,418 | ||||||
Unbilled receivables | 25,246 | 28,083 | ||||||
Prepaid expenses and other current assets | 12,701 | 4,101 | ||||||
Total current assets | 152,747 | 129,523 | ||||||
Property and equipment, net | 1,495 | 2,243 | ||||||
Internal use software, net | 16,918 | 12,322 | ||||||
Intangible assets, net | 218,820 | 243,348 | ||||||
Goodwill | 458,276 | 458,586 | ||||||
Other long-term assets | 4,057 | 3,557 | ||||||
Total assets | $852,313 | $ | 849,579 | |||||
LIABILITIES AND MEMBERS’/STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 44,732 | $ | 38,789 | ||||
Due to related party | 67 | 150 | ||||||
Capital leases payable | 105 | 325 | ||||||
Deferred revenue | 754 | 1,144 | ||||||
Total current liabilities | 45,658 | 40,408 | ||||||
Accrued rent | 1,913 | 1,827 | ||||||
Net deferred tax liability | 18,808 | 24,794 | ||||||
Long-term debt | 352,095 | 351,071 | ||||||
Total liabilities | 418,474 | 418,100 | ||||||
Commitments and Contingencies (Note 13) | 0 | 0 | ||||||
Members’/Stockholders’ Equity | ||||||||
Units, $4.1322314 par value, 0 units authorized at June 30, 2021, 0 units and 134,039,494 issued and outstanding at June 30, 2021 and December 31, 2020, respectively | — | 553,717 | ||||||
Preferred Stock, $0.001 par value, 50,000,000 shares authorized at June 30, 2021; 0 shares issued and outstanding at June 30, 2021 and December 31, 2020 | 0— | 0— | ||||||
Common Stock, $0.001 par value, 500,000,000 shares authorized at June 30, 2021, 134,203,403 shares issued and outstanding at June 30, 2021; 0 shares issued and outstanding at December 31, 2020 | 134 | — | ||||||
Additional paid-in-capital(1) | 430,368 | — | ||||||
Accumulated other comprehensive income | 3,337 | 4,523 | ||||||
Accumulated deficit(1) | — | (126,761 | ) | |||||
Total members’/stockholders’ equity | 433,839 | 431,479 | ||||||
Total liabilities and members’/stockholders’ equity | $852,313 | $ | 849,579 | |||||
Three Months Ended March 31, | ||||||||||||||
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) | 2022 | 2021 | ||||||||||||
Revenue | $ | 89,242 | $ | 66,952 | ||||||||||
Operating expenses: | ||||||||||||||
Cost of revenue (excluding depreciation and amortization shown below) | 16,561 | 11,420 | ||||||||||||
Sales and marketing | 23,057 | 16,545 | ||||||||||||
Technology and development | 16,987 | 12,769 | ||||||||||||
General and administrative | 16,769 | 8,547 | ||||||||||||
Depreciation and amortization | 12,458 | 14,395 | ||||||||||||
Total operating expenses | 85,832 | 63,676 | ||||||||||||
Operating income | 3,410 | 3,276 | ||||||||||||
Interest expense, net | (1,426) | (6,960) | ||||||||||||
Net income (loss) before income taxes | 1,984 | (3,684) | ||||||||||||
(Provision) benefit from income taxes | (825) | 912 | ||||||||||||
Net income (loss) | $ | 1,159 | $ | (2,772) | ||||||||||
Net income (loss) per share – basic and diluted (1) | $ | 0.01 | $ | (0.02) | ||||||||||
Weighted average shares outstanding: | ||||||||||||||
Basic | 154,477,403 | 134,007,742 | ||||||||||||
Diluted | 157,159,026 | 134,007,742 | ||||||||||||
Other comprehensive income (loss): | ||||||||||||||
Foreign currency translation adjustments | (974) | (1,904) | ||||||||||||
Total comprehensive income (loss) | $ | 185 | $ | (4,676) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Revenue | $ | 75,075 | $ | 48,320 | $ | 142,027 | $ | 102,362 | ||||||||
Operating expenses: | ||||||||||||||||
Cost of revenue (excluding depreciation and amortization shown below) | 12,925 | 8,756 | 24,344 | 17,911 | ||||||||||||
Sales and marketing | 27,268 | 16,754 | 43,813 | 35,124 | ||||||||||||
Technology and development | 20,176 | 12,726 | 32,944 | 25,062 | ||||||||||||
General and administrative | 33,044 | 7,946 | 41,592 | 15,586 | ||||||||||||
Depreciation and amortization | 14,603 | 16,413 | 28,998 | 32,751 | ||||||||||||
Total operating expenses | 108,016 | 62,595 | 171,691 | 126,434 | ||||||||||||
Operating loss | (32,941 | ) | (14,275 | ) | (29,664 | ) | (24,072 | ) | ||||||||
Interest expense, net | (5,167 | ) | (7,695 | ) | (12,126 | ) | (15,953 | ) | ||||||||
Net loss before benefit from income taxes | (38,108 | ) | (21,970 | ) | (41,790 | ) | (40,025 | ) | ||||||||
Benefit from income taxes | 3,045 | 5,519 | 3,958 | 9,130 | ||||||||||||
Net loss | $ | (35,063 | ) | $ | (16,451 | ) | $ | (37,832 | ) | $ | (30,895 | ) | ||||
Net loss per share – basic and diluted (1): | $ | (0.26 | ) | $ | (0.12 | ) | $ | (0.28 | ) | $ | (0.23 | ) | ||||
Basic and diluted weighted average shares outstanding | 133,981,985 | 134,050,576 | 133,996,147 | 134,051,786 | ||||||||||||
Other comprehensive income (loss): | ||||||||||||||||
Foreign currency translation adjustments | 718 | 1,190 | (1,186 | ) | (724 | ) | ||||||||||
Total comprehensive loss | $ | (34,345 | ) | $ | (15,261 | ) | $ | (39,018 | ) | $ | (31,619 | ) | ||||
Member’s Interest | Common Stock | |||||||||||||||||||||||||||||||
(IN THOUSANDS, EXCEPT UNITS AND SHARES) | Units (1) | Amount | Shares | Amount | Additional paid-in capital | Accumulated other comprehensive income (loss) | Accumulated deficit | Total members’/ stockholders’ equity | ||||||||||||||||||||||||
Balance, April 1, 2021 | 133,957,034 | $ | 553,304 | 0 | $ | 0 | $ | 0 | $ | 2,619 | $ | (130,322 | ) | $ | 425,601 | |||||||||||||||||
Option exercises | 246,369 | 1,075 | — | — | 3,360 | — | — | 4,435 | ||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 38,148 | — | — | 38,148 | ||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | 718 | — | 718 | ||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (35,063 | ) | (35,063 | ) | ||||||||||||||||||||||
Conversion to Delaware corporation (Note 1) | (134,203,403 | ) | (554,379 | ) | 134,203,403 | 134 | 388,860 | — | 165,385 | 0 | ||||||||||||||||||||||
Balance, June 30, 2021 | 0 | $ | 0 | 134,203,403 | $ | 134 | $ | 430,368 | $ | 3,337 | $ | 0 | $ | 433,839 | ||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||||||||||||||
(IN THOUSANDS, EXCEPT SHARES) | Shares | Amount | Additional paid-in capital | Accumulated other comprehensive income (loss) | Accumulated deficit | Total stockholders’ equity | ||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | 154,398,495 | $ | 154 | $ | 781,951 | $ | (315) | $ | (14,600) | $ | 767,190 | |||||||||||||||||||||||||||
RSUs vested | 12,094 | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Option exercises | 605,682 | 1 | 2,531 | — | — | 2,532 | ||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 8,134 | — | — | 8,134 | ||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | (974) | — | (974) | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 1,159 | 1,159 | ||||||||||||||||||||||||||||||||
Balance, March 31, 2022 | 155,016,271 | $ | 155 | $ | 792,616 | $ | (1,289) | $ | (13,441) | $ | 778,041 |
Member’s Interest | ||||||||||||||||||||||||||||||||||||||
(IN THOUSANDS, EXCEPT UNITS AND SHARES) | Units(1) | Amount | Additional paid-in capital | Accumulated other comprehensive income (loss) | Accumulated deficit | Total members’ equity | ||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | 134,039,494 | $ | 553,717 | $ | — | $ | 4,523 | $ | (126,761) | $ | 431,479 | |||||||||||||||||||||||||||
Repurchase of units | (99,946) | (413) | — | — | (789) | (1,202) | ||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | (1,904) | — | (1,904) | ||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | (2,772) | (2,772) | ||||||||||||||||||||||||||||||||
Balance, March 31, 2021 | 133,939,548 | $ | 553,304 | $ | — | $ | 2,619 | $ | (130,322) | $ | 425,601 |
Member’s Interest | Common Stock | |||||||||||||||||||||||||||||||
(IN THOUSANDS, EXCEPT UNITS AND SHARES) | Units (1) | Amount | Shares | Amount | Additional paid-in capital | Accumulated other comprehensive income (loss) | Accumulated deficit | Total members’/ stockholders’ equity | ||||||||||||||||||||||||
Balance, January 1, 2021 | 134,039,494 | $ | 553,717 | 0 | $ | 0 | $ | 0 | $ | 4,523 | $ | (126,761 | ) | $ | 431,479 | |||||||||||||||||
Repurchase of units | (99,946 | ) | (413 | ) | (791 | ) | (1,204 | ) | ||||||||||||||||||||||||
Units vested | 17,486 | 0 | 0 | 0 | 0 | — | 0 | |||||||||||||||||||||||||
Option exercises | 246,369 | 1,075 | 0 | 0 | 3,360 | 0 | — | 4,435 | ||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 38,148 | — | — | 38,148 | ||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | (1,186 | ) | — | (1,186 | ) | ||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (37,832 | ) | (37,832 | ) | ||||||||||||||||||||||
Conversion to Delaware corporation (Note 1) | (134,203,403 | ) | (554,379 | ) | 134,203,403 | 134 | 388,860 | — | 165,385 | 0 | ||||||||||||||||||||||
Balance, June 30, 2021 | 0 | $ | 0 | 134,203,403 | $ | 134 | $ | 430,368 | $ | 3,337 | $ | 0 | $ | 433,839 | ||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||
(IN THOUSANDS) | 2022 | 2021 | ||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net income (loss) | $ | 1,159 | $ | (2,772) | ||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||||||||||||||
Depreciation and amortization | 12,458 | 14,395 | ||||||||||||
Stock-based compensation | 8,139 | — | ||||||||||||
Deferred tax benefit | (719) | — | ||||||||||||
Amortization of debt issuance costs | 116 | 341 | ||||||||||||
Allowance for (reversal of) doubtful accounts | 314 | (266) | ||||||||||||
Non-cash interest expense | — | 395 | ||||||||||||
Impairment of assets | 49 | — | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Decrease (increase) in accounts receivable | (1,673) | 3,556 | ||||||||||||
Decrease in unbilled receivables | 649 | 2,939 | ||||||||||||
Increase in prepaid expenses and other current assets | (2,612) | (3,743) | ||||||||||||
Operating leases, net | (195) | — | ||||||||||||
Increase in other long-term assets | (185) | (151) | ||||||||||||
Decrease in accounts payable and accrued expenses | (6,520) | (6,833) | ||||||||||||
Increase in accrued rent | — | 31 | ||||||||||||
Increase (decrease) in deferred revenue | 173 | (44) | ||||||||||||
Increase (decrease) in due to/from related party | 34 | (151) | ||||||||||||
Net cash provided by operating activities | 11,187 | 7,697 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||
(Purchase of) proceeds from sale of property and equipment | (328) | 5 | ||||||||||||
Acquisition and development of internal use software and other | (2,677) | (6,382) | ||||||||||||
Net cash used in investing activities | (3,005) | (6,377) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||
Principal payments on capital lease obligations | — | (136) | ||||||||||||
Cash paid for unit repurchases | — | (1,202) | ||||||||||||
Repayment of short-term debt | (1,934) | — | ||||||||||||
Exercise of stock options | 2,532 | — | ||||||||||||
Net cash provided by (used in) financing activities | 598 | (1,338) | ||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 8,780 | (18) | ||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 278 | (846) | ||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 76,078 | 54,721 | ||||||||||||
Cash, cash equivalents, and restricted cash, at end of period | $ | 85,137 | $ | 53,857 | ||||||||||
Supplemental Disclosures: | ||||||||||||||
Cash paid during the period for: | ||||||||||||||
Interest | $ | 1,298 | $ | 6,281 | ||||||||||
Taxes | $ | 977 | $ | 326 | ||||||||||
Non-cash investing and financing activities: | ||||||||||||||
Deferred offering costs accrued, not yet paid | $ | — | $ | 1,676 | ||||||||||
Property and equipment acquired included in accounts payable | $ | 16 | $ | 93 | ||||||||||
Internal use software acquired included in accounts payable | $ | 1,128 | $ | 480 | ||||||||||
Lease liabilities arising from right of use assets | $ | 27,650 | $ | — |
Member’s Interest | ||||||||||||||||||||||||
(IN THOUSANDS, EXCEPT UNITS AND SHARES) | Units (1) | Amount | Additional paid-in capital | Accumulated other comprehensive income (loss) | Accumulated deficit | Total members’/ stockholders’ equity | ||||||||||||||||||
Balance, April 1, 2020 | 134,050,576 | $ | 553,778 | $ | 0 | $ | (1,739 | ) | $ | (108,821 | ) | $ | 443,218 | |||||||||||
Foreign currency translation adjustment | — | — | — | 1,190 | — | 1,190 | ||||||||||||||||||
Net loss | — | — | — | — | (16,451 | ) | (16,451 | ) | ||||||||||||||||
Balance, June 30, 2020 | 134,050,576 | $ | 553,778 | $ | 0 | $ | (549 | ) | $ | (125,272 | ) | $ | 427,957 | |||||||||||
Member’s Interest | ||||||||||||||||||||||||
(IN THOUSANDS, EXCEPT UNITS AND SHARES) | Units (1) | Amount | Additional paid-in capital | Accumulated other comprehensive income (loss) | Accumulated deficit | Total members’/ stockholders’ equity | ||||||||||||||||||
Balance, January 1, 2020 | 134,034,604 | $ | 553,862 | $ | 0 | $ | 175 | $ | (94,365 | ) | $ | 459,672 | ||||||||||||
Repurchase of units | (20,328 | ) | (84 | ) | (12 | ) | (96 | ) | ||||||||||||||||
Units vested | 36,300 | — | — | 0 | — | 0 | ||||||||||||||||||
Foreign currency translation adjustment | — | — | — | (724 | ) | — | (724 | ) | ||||||||||||||||
Net loss | — | — | — | — | (30,895 | ) | (30,895 | ) | ||||||||||||||||
Balance, June 30, 2020 | 134,050,576 | $ | 553,778 | $ | 0 | $ | (549 | ) | $ | (125,272 | ) | $ | 427,957 | |||||||||||
Six Months Ended June 30, | ||||||||
(IN THOUSANDS) | 2021 | 2020 | ||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (37,832 | ) | $ | (30,895 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities | ||||||||
Depreciation and amortization | 28,998 | 32,751 | ||||||
Stock-based compensation | 41,531 | 0 | ||||||
Deferred tax provision | (6,582 | ) | — | |||||
Amortization of debt issuance costs | 683 | 683 | ||||||
Allowance for doubtful accounts | 99 | 1,170 | ||||||
Non-cash interest expense | 395 | 2,223 | ||||||
Changes in operating assets and liabilities: | ||||||||
Decrease in accounts receivable | 3,718 | 5,777 | ||||||
Decrease in unbilled receivables | 2,769 | 5,073 | ||||||
Increase in prepaid expenses and other current assets | (2,791 | ) | (590 | ) | ||||
Increase in taxes receivable | 0 | (9,074 | ) | |||||
Increase in other long-term assets | (602 | ) | (32 | ) | ||||
Increase in accounts payable and accrued expenses | 2,852 | 6,622 | ||||||
Increase (decrease) in due to related party | 67 | (172 | ) | |||||
Increase in accrued rent | 128 | 122 | ||||||
Decrease in deferred revenue | (377 | ) | (420 | ) | ||||
Net cash provided by operating activities | 33,056 | 13,238 | ||||||
Cash flows from investing activities: | ||||||||
Purchase of property and equipment | (318 | ) | (330 | ) | ||||
Acquisition and development of internal use software | (7,778 | ) | (6,385 | ) | ||||
Net cash used in investing activities | (8,096 | ) | (6,715 | ) | ||||
Cash flows from financing activities: | ||||||||
Principal payments on capital lease obligations | (219 | ) | (976 | ) | ||||
Cash paid for share repurchases | (1,204 | ) | (96 | ) | ||||
Initial public offering costs paid | (2,767 | ) | 0 | |||||
Exercise of stock options | 1,075 | 0 | ||||||
Net cash used in financing activities | (3,115 | ) | (1,072 | ) | ||||
Net increase in cash, cash equivalents and restricted cash | 21,845 | 5,451 | ||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (553 | ) | 76 | |||||
Cash, cash equivalents and restricted cash at beginning of period | 54,721 | 30,370 | ||||||
Cash, cash equivalents, and restricted cash, at end of period | $ | 76,013 | $ | 35,897 | ||||
Supplemental Disclosures: | ||||||||
Cash paid during the period for: | ||||||||
Interest | $ | 11,710 | $ | 8,909 | ||||
Taxes | $ | 1,170 | $ | 477 | ||||
Non-cash investing and financing activities | ||||||||
Deferred offering costs accrued, not yet paid | $ | 02,956 | $ | 0— | ||||
Assets acquired under capital leases | $ | 0 | $ | 185 | ||||
Property and equipment acquired included in accounts payable | $ | 127 | $ | 113 | ||||
Conversion of members’ equity to additional paid-in capital | $ | 165,385 | $ | 0 |
March 31, 2022 | December 31, 2021 | |||||||||||||
Cash and cash equivalents | $ | 82,255 | $ | 73,210 | ||||||||||
Short term restricted cash | 78 | 70 | ||||||||||||
Long term restricted cash (held in other long-term assets) | 2,804 | 2,798 | ||||||||||||
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows | $ | 85,137 | $ | 76,078 |
June 30, 2021 | December 31. 2020 | |||||||
Cash and cash equivalents | $ | 73,234 | $ | 51,734 | ||||
Short term restricted cash | 75 | 187 | ||||||
Long term restricted cash (held in other long-term assets) | 2,704 | 2,800 | ||||||
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows | $ | 76,013 | $ | 54,721 | ||||
March 31, 2022 | March 31, 2021 | |||||||||||||
Balance, beginning of period | $ | 5,883 | 4,257 | |||||||||||
Additional provision (reversal) | 314 | (266) | ||||||||||||
Receivables written off | (207) | (574) | ||||||||||||
Balance, end of period | $ | 5,990 | 3,417 |
June 30, 2021 | June 30, 2020 | |||||||
Balance, beginning of period | $ | 4,257 | 5,843 | |||||
Additional provision | 99 | 1,170 | ||||||
Receivables written off | (558 | ) | (729 | ) | ||||
Balance, end of period | $ | 3,798 | 6,284 | |||||
March 31, 2022 | March 31, 2021 (1) | |||||||||||||||||||||||||
Estimated fair value | $8.16 | - | $14.04 | $2.29 | ||||||||||||||||||||||
Expected volatility (%) | 65% | - | 80% | 70% | - | 75% | ||||||||||||||||||||
Expected term (in years) | 3.00 | - | 10.00 | 3.25 | - | 6.63 | ||||||||||||||||||||
Risk-free interest rate (%) | 0.46% | - | 0.98% | 0.26% | - | 0.55% | ||||||||||||||||||||
Dividend yield | — | — |
June 30, 2021 | June 30, 2020 (1) | |||
Estimated fair value | $7.77 –13.93 | $2.29 | ||
Expected volatility (%) | 65.0 –80.0% | 70.0-75.0% | ||
Expected term (in years) | 3-10 | 3.25-6.63 | ||
Risk-free interest rate (%) | 0.41 –0.98% | 0.26-0.55% | ||
Dividend yield | 0 | 0 |
Fair Value | Useful Life | ||||||||||
Assets acquired: | |||||||||||
Cash and cash equivalents | $ | 4,482 | |||||||||
Accounts receivable | 2,391 | ||||||||||
Property, plant and equipment | 46 | ||||||||||
Prepaid expenses | 188 | ||||||||||
Security deposits | 12 | ||||||||||
Intangible assets: | |||||||||||
Developed technology | 15,200 | 5 years | |||||||||
Trademarks | 2,200 | 5 years | |||||||||
Customer relationships | 42,800 | 6 years | |||||||||
Total intangible assets | 60,200 | ||||||||||
Total identifiable assets acquired | $ | 67,319 | |||||||||
Liabilities assumed: | |||||||||||
Accounts payable | $ | 560 | |||||||||
Other current liabilities | 2 | ||||||||||
Deferred tax liability | 36,161 | ||||||||||
Total liabilities assumed | 36,723 | ||||||||||
Goodwill | 190,401 | Indefinite | |||||||||
Total purchase consideration | $ | 220,997 |
Fair Value | Useful Life | ||||||||||
Assets acquired: | |||||||||||
Accounts receivable | $ | 122 | |||||||||
Other assets | 112 | ||||||||||
Developed technology | 7,670 | 5 years | |||||||||
Total identifiable assets acquired | $ | 7,904 | |||||||||
Liabilities assumed: | |||||||||||
Accounts payable | $ | 318 | |||||||||
Short-term debt | 2,354 | ||||||||||
Deferred tax liability | 142 | ||||||||||
Total liabilities assumed | 2,814 | ||||||||||
Goodwill | 27,876 | Indefinite | |||||||||
Total purchase consideration | $ | 32,966 |
Estimated useful life (in years) | March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||
Computer and office equipment | 1 | - | 3 years | $ | 3,324 | $ | 3,100 | |||||||||||||||||||
Computer software | 3 | - | 5 years | 218 | 218 | |||||||||||||||||||||
Leasehold improvements | Various | 405 | 412 | |||||||||||||||||||||||
Furniture | 5 years | 78 | 66 | |||||||||||||||||||||||
Total property and equipment | 4,025 | 3,796 | ||||||||||||||||||||||||
Less: accumulated depreciation | (2,647) | (2,383) | ||||||||||||||||||||||||
Total property and equipment, net | $ | 1,378 | $ | 1,413 |
Estimated useful life (in years) | June 30, 2021 | December 31, 2020 | ||||||||||
Computer and office equipment | 1 –3 years | $ | 9,366 | $ | 9,167 | |||||||
Computer software | 3 –5 years | 236 | 236 | |||||||||
Leasehold improvements | Various | 2,125 | 2,120 | |||||||||
Furniture | 5 years | 336 | 317 | |||||||||
Total property and equipment | 12,063 | 11,840 | ||||||||||
Less: accumulated depreciation | (10,568 | ) | (9,597 | ) | ||||||||
Total property and equipment, net | $ | 1,495 | $ | 2,243 | ||||||||
June 30, 2021 | December 31, 2020 | |||||||
Computer and office equipment | $ | 6,073 | $ | 6,073 | ||||
Less: Accumulated depreciation | (6,002 | ) | (5,782 | ) | ||||
Total computer and office equipment under capital leases, net | $ | 71 | $ | 291 | ||||
Estimated useful life (in years) | March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||
Internal use software | 3 | - | 5 years | $ | 35,489 | $ | 32,591 | |||||||||||||||||||
Less: Accumulated amortization | (16,681) | (14,491) | ||||||||||||||||||||||||
Total internal use software, net | $ | 18,808 | $ | 18,100 |
Estimated useful life (in years) | June 30, 2021 | December 31, 2020 | ||||||||||
Internal use software | 3 - 5 years | $ | 27,316 | $ | 19,124 | |||||||
Less: Accumulated amortization | (10,398 | ) | (6,802 | ) | ||||||||
Total internal use software, net | $ | 16,918 | $ | 12,322 | ||||||||
March 31, 2022 | ||||||||||||||||||||||||||||||||||||||
Estimated useful life | Gross book value | Accumulated amortization | Net book value | Weighted average remaining useful life | ||||||||||||||||||||||||||||||||||
Customer relationships | 5 | - | 15 years | $ | 302,005 | $ | (89,727) | $ | 212,278 | 10.2 years | ||||||||||||||||||||||||||||
Developed technology | 4 | - | 5 years | 138,098 | (114,006) | 24,092 | 4.2 years | |||||||||||||||||||||||||||||||
Trademarks | 5 | - | 9 years | 19,700 | (8,043) | 11,657 | 5.1 years | |||||||||||||||||||||||||||||||
Favorable leases | 6 years | 198 | (123) | 75 | 2.3 years | |||||||||||||||||||||||||||||||||
Total | $ | 460,001 | $ | (211,899) | $ | 248,102 | ||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Estimated useful life | Gross book value | Accumulated amortization | Net book value | Weighted average remaining useful life | ||||||||||||||||||||||||||||||||||
Customer relationships | 5 | - | 15 years | $ | 302,026 | $ | (82,105) | $ | 219,921 | 10.4 years | ||||||||||||||||||||||||||||
Developed technology | 4 | - | 5 years | 138,342 | (112,347) | 25,995 | 4.5 years | |||||||||||||||||||||||||||||||
Trademarks | 5 | - | 9 years | 19,700 | (7,384) | 12,316 | 5.4 years | |||||||||||||||||||||||||||||||
Favorable leases | 6 years | 198 | (114) | 84 | 2.5 years | |||||||||||||||||||||||||||||||||
Total | $ | 460,266 | $ | (201,950) | $ | 258,316 |
June 30, 2021 | ||||||||||||||||||||
Estimated useful life | Gross book value | Accumulated amortization | Net book value | Weighted average remaining useful life | ||||||||||||||||
Customer relationships | 5-15 years | $ | 259,288 | $ | (67,295 | ) | $ | 191,993 | 12.0 Ye ars | |||||||||||
Developed technology | 4-5 years | 115,693 | (100,353 | ) | 15,340 | 1.8 Years | ||||||||||||||
Trademarks | 9 years | 17,500 | (6,114 | ) | 11,386 | 6.0 Years | ||||||||||||||
Favorable leases | 6 years | 198 | (97 | ) | 101 | 3.0 Y ears | ||||||||||||||
Total | $ | 392,679 | $ | (173,859 | ) | $ | 218,820 | |||||||||||||
December 31, 2020 | ||||||||||||||||||||
Estimated useful life | Gross book value | Accumulated amortization | Net book value | Weighted average remaining useful life | ||||||||||||||||
Customer relationships | 5-15 years | $ | 259,329 | $ | (55,282 | ) | $ | 204,047 | 12.5 Years | |||||||||||
Developed technology | 4-5 years | 115,921 | (89,219 | ) | 26,702 | 2.1 Years | ||||||||||||||
Trademarks | 9 years | 17,500 | (5,018 | ) | 12,482 | 6.5 Years | ||||||||||||||
Favorable leases | 6 years | 198 | (81 | ) | 117 | 3.5 Years | ||||||||||||||
Total | $ | 392,948 | $ | (149,600 | ) | $ | 243,348 | |||||||||||||
Goodwill as of December 31, 2021 | $ | 676,513 | |||
Measurement period adjustments | (252) | ||||
Impact of exchange rates | (629) | ||||
Goodwill as of March 31, 2022 | $ | 675,632 | |||
Goodwill as of December 31, 2020 | $ | 458,586 | ||
Impact of exchange rates | (310 | ) | ||
Goodwill as of June 30, 2021 | $ | 458,276 | ||
March 31, 2022 | December 31, 2021 | ||||||||||
Accounts payable | $ | 17,383 | $ | 8,307 | |||||||
Accrued payroll | 5,908 | 5,047 | |||||||||
Accrued professional fees | 1,496 | 2,334 | |||||||||
Accrued interest | 48 | 33 | |||||||||
Accrued bonuses and commissions | 6,210 | 16,454 | |||||||||
Accrued revenue sharing | 3,428 | 8,497 | |||||||||
Taxes payable | 6,230 | 6,076 | |||||||||
Short term debt | — | 1,976 | |||||||||
Accrued hosting fees | 3,089 | 2,465 | |||||||||
Cease use liability (short-term) | — | 1,298 | |||||||||
Other accrued expenses | 3,892 | 3,770 | |||||||||
Total accounts payable and accrued expenses | $ | 47,684 | $ | 56,257 |
March 31, 2022 | December 31, 2021 | ||||||||||
Purchase price payable for the acquisition of Context | $ | 967 | $ | 2,320 | |||||||
Cease use liability (long-term) | — | 5,689 | |||||||||
Security deposit received | 672 | 672 | |||||||||
Total Other long-term liabilities | $ | 1,639 | $ | 8,681 |
June 30, 2021 | December 31, 2020 | |||||||
Accounts payable | $ | 9,806 | $ | 8,808 | ||||
Accrued payroll | 6,380 | 3,482 | ||||||
Accrued professional fees | 4,948 | 2,503 | ||||||
Accrued interest | 3,619 | 4,277 | ||||||
Accrued bonuses and commissions | 7,195 | 11,883 | ||||||
Accrued revenue sharing | 4,535 | 2,503 | ||||||
Taxes payable | 4,707 | 3,019 | ||||||
Other accrued expenses | 3,542 | 2,314 | ||||||
Total accounts payable and accrued expenses | $44,732 | $ | 38,789 | |||||
March 31, 2022 | December 31, 2021 | ||||||||||
New Revolver | $ | 245,000 | $ | 245,000 | |||||||
Less: Unamortized debt issuance costs | (2,086) | (2,202) | |||||||||
Total carrying amount | $ | 242,914 | $ | 242,798 |
June 30, 2021 | December 31, 2020 | |||||||
Term Loan | $ | 345,000 | $ | 345,000 | ||||
PIK Interest | 10,934 | 10,539 | ||||||
Less: Unamortized debt issuance costs | (3,839 | ) | (4,468 | ) | ||||
Total carrying amount of Term Loan | $ | 352,095 | $ | 351,071 | ||||
Year Ending | |||||
2022 (remaining nine months) | $ | — | |||
2023 | — | ||||
2024 | — | ||||
2025 | — | ||||
2026 | 245,000 | ||||
$ | 245,000 |
Year Ending | ||||
2021 | $ | 0 | ||
2022 | 0 | |||
2023 | 0 | |||
2024 | 345,000 | |||
$ | 345,000 | |||
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
North and South America (“Americas”) | $ | 60,559 | $ | 41,190 | ||||||||||
Europe, Middle East and Africa (“EMEA”) | 21,658 | 18,917 | ||||||||||||
Asia and Pacific Rim (“APAC”) | 7,025 | 6,845 | ||||||||||||
Total | $ | 89,242 | $ | 66,952 |
Three Months Ended June 30, | Six Months June Ended 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
North and South America (“Americas”) | $ | 45,444 | $ | 29,575 | $ | 86,634 | $ | 62,548 | ||||||||
Europe, Middle East and Africa (“EMEA”) | 22,045 | 13,714 | 40,962 | 29,495 | ||||||||||||
Asia and Pacific Rim (“APAC”) | 7,586 | 5,031 | 14,431 | 10,319 | ||||||||||||
Total | $ | 75,075 | $ | 48,320 | $ | 142,027 | $ | 102,362 | ||||||||
March 31, 2022 | December 31, 2021 | |||||||||||||
Long lived assets | ||||||||||||||
Americas | $ | 16,748 | $ | 876 | ||||||||||
EMEA | 887 | 181 | ||||||||||||
APAC | 3,893 | 356 | ||||||||||||
Total | $ | 21,528 | $ | 1,413 |
June 30, 2021 | December 31, 2020 | |||||||
Property and Equipment, net | ||||||||
Americas | $ | 1,185 | $ | 1,954 | ||||
EMEA | 202 | 282 | ||||||
APAC | 108 | 7 | ||||||
Total | $ | 1,495 | $ | 2,243 | ||||
Stock options | Weighted average exercise price | Weighted average remaining contractual life (years) | Aggregate intrinsic value | |||||||||||||||||||||||
Outstanding at January 1, 2022 | 6,648,975 | $ | 7.46 | 7.76 | $ | 98,055 | ||||||||||||||||||||
Granted | — | — | — | — | ||||||||||||||||||||||
Canceled or forfeited | (201,414) | 4.13 | — | — | ||||||||||||||||||||||
Exercised | (605,682) | 4.18 | — | — | ||||||||||||||||||||||
Outstanding at March 31, 2022 | 5,841,879 | $ | 7.92 | 7.61 | $ | 39,635 | ||||||||||||||||||||
Vested and expected to vest at March 31, 2022 | 5,841,879 | $ | 7.92 | 7.61 | — | |||||||||||||||||||||
Exercisable as of March 31, 2022 | 2,883,956 | $ | 4.64 | 6.83 | $ | 26,425 |
Stock options | Weighted average exercise price | Weighted average remaining contractual life (years) | Aggregate intrinsic value | |||||||||||||||||||||||
Outstanding at January 1, 2022 | 3,265,126 | $ | 7.53 | 7.27 | 47,947 | |||||||||||||||||||||
Granted | — | — | — | — | ||||||||||||||||||||||
Canceled or forfeited | (366,452) | 4.13 | — | — | ||||||||||||||||||||||
Exercised | — | — | — | — | ||||||||||||||||||||||
Outstanding at March 31, 2022 | 2,898,674 | $ | 7.95 | 7.75 | $ | 19,582 | ||||||||||||||||||||
Vested and expected to vest at March 31, 2022 | 2,898,674 | $ | 7.95 | 7.75 | — | |||||||||||||||||||||
Exercisable as of March 31, 2022 | — | — | — | — |
RSUs | |||||||||||
Number of Shares | Weighted Average Grant Date Fair Value | ||||||||||
Outstanding as of January 1, 2022 | 2,426,147 | $ | 19.43 | ||||||||
Granted | 524,411 | 18.14 | |||||||||
Canceled or forfeited | (152,088) | 18.64 | |||||||||
Vested | (12,094) | 12.40 | |||||||||
Outstanding as of March 31, 2022 | 2,786,376 | $ | 19.27 | ||||||||
Expected to vest as of March 31, 2022 | 2,786,376 |
Stock options | Weighted average exercise price | Weighted average remaining contractual life (years) | Aggregate intrinsic value | |||||||||||||
Outstanding at April 1, 2021 | 6,235,613 | $ | 4.98 | 8.25 | — | |||||||||||
Granted | 1,255,496 | 18.00 | 10.00 | — | ||||||||||||
Canceled or forfeited | (519,710 | ) | 4.30 | — | — | |||||||||||
Exercised | (246,369 | ) | 4.36 | — | — | |||||||||||
Outstanding at June 30, 2021 | 6,725,030 | $ | 7.49 | 9.29 | $ | 88,061 | ||||||||||
Vested and expected to vest at June 30, 2021 | 6,725,030 | $ | 7.49 | 9.29 | 0 | |||||||||||
Exercisable as of June 30, 2021 | 2,371,227 | $ | 4.17 | 7.62 | $ | 38,912 |
Stock options | Weighted average exercise price | Weighted average remaining contractual life (years) | Aggregate intrinsic value | |||||||||||||
Outstanding at April 1, 2021 | 3,117,795 | $ | 4.98 | 8.25 | — | |||||||||||
Granted | 627,990 | 18.00 | 10.00 | — | ||||||||||||
Canceled or forfeited | (383,029 | ) | 4.32 | — | — | |||||||||||
Exercised | 0 | 0 | — | — | ||||||||||||
Outstanding at June 30, 2021 | 3,362,756 | $ | 7.49 | 9.29 | $ | 44,031 | ||||||||||
Vested and expected to vest at June 30, 2021 | 3,362,756 | $ | 7.49 | 9.29 | 0 | |||||||||||
Exercisable as of June 30, 2021 | 0 | 0 | 0— | 0 |
Stock options | Weighted average exercise price | Weighted average remaining contractual life (years) | Aggregate intrinsic value | |||||||||||||
Outstanding at January 1, 2021 | 6,109,438 | $ | 4.83 | 8.47 | — | |||||||||||
Granted | 1,381,671 | 17.49 | 9.96 | — | ||||||||||||
Canceled or forfeited | (519,710 | ) | 4.30 | — | — | |||||||||||
Exercised | (246,369 | ) | 4.36 | — | — | |||||||||||
Outstanding at June 30, 2021 | 6,725,030 | $ | 7.49 | 9.29 | $ | 88,061 | ||||||||||
Vested and expected to vest at June 30, 2021 | 6,725,030 | $ | 7.49 | 9.29 | 0 | |||||||||||
Exercisable as of June 30, 2021 | 2,371,227 | $ | 4.17 | 7.62 | $ | 38,912 |
Stock options | Weighted average exercise price | Weighted average remaining contractual life (years) | Aggregate intrinsic value | |||||||||||||
Outstanding at January 1, 2021 | 3,054,708 | $ | 4.83 | 8.47 | — | |||||||||||
Granted | 691,077 | 17.49 | 9.96 | — | ||||||||||||
Canceled or forfeited | (383,029 | ) | 4.32 | — | — | |||||||||||
Exercised | 0 | 0 | — | — | ||||||||||||
Outstanding at June 30, 2021 | 3,362,756 | $ | 7.49 | 9.29 | $ | 44,031 | ||||||||||
Vested and expected to vest at June 30, 2021 | 3,362,756 | $ | 7.49 | 9.29 | 0 | |||||||||||
Exercisable as of June 30, 2021 | 0 | 0 | 0— | 0 |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Cost of revenue | $ | 56 | $ | — | ||||||||||
Sales and marketing | 2,531 | — | ||||||||||||
Technology and development | 1,536 | — | ||||||||||||
General and administrative | 4,016 | — | ||||||||||||
Total | $ | 8,139 | $ | — |
Three and Six Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Sales and marketing | $ | 10,807 | 0 | |||||
Technology and development | 7,009 | 0 | ||||||
General and administrative | 23,715 | 0 | ||||||
Total | $ | 41,531 | $ | 0 | ||||
Three Months Ended March 31, 2022 | ||||||||
Lease costs: | ||||||||
Operating lease costs | $ | 1,651 | ||||||
Short-term lease costs | 727 | |||||||
Variable lease costs | 85 | |||||||
Sublease income | (656) | |||||||
Total lease costs | $ | 1,808 |
Year Ended December 31, | |||||
2022 (remaining nine months) | $ | 5,248 | |||
2023 | 6,284 | ||||
2024 | 6,328 | ||||
2025 | 6,451 | ||||
2026 | 5,154 | ||||
Thereafter | 1,149 | ||||
Total lease payments | 30,614 | ||||
Less: imputed interest | 2,964 | ||||
Total operating lease liability | $ | 27,650 |
Year Ended December 31, | |||||
2022 | $ | 6,957 | |||
2023 | 6,276 | ||||
2024 | 6,345 | ||||
2025 | 6,467 | ||||
2026 | 5,157 | ||||
2027 and thereafter | 1,149 | ||||
$ | 32,351 |
Year Ended December 31, | |||||
2022 | $ | 1,569 | |||
2023 | 2,756 | ||||
2024 | 2,825 | ||||
2025 | 2,896 | ||||
2026 | 2,968 | ||||
2027 and thereafter | 761 | ||||
$ | 13,775 |
Total minimum lease payments | $ | 106 | ||
Less: Amount representing interest | (1 | ) | ||
Total | $ | 105 | ||
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Numerator: | ||||||||||||||
Net income (loss) | $ | 1,159 | $ | (2,772) | ||||||||||
Denominator: | ||||||||||||||
Basic Shares: | ||||||||||||||
Weighted-average shares outstanding | 154,477,403 | 134,007,742 | ||||||||||||
Diluted Shares: | ||||||||||||||
Basic weighted-average shares outstanding | 154,477,403 | 134,007,742 | ||||||||||||
Dilutive effect of stock based awards | 2,681,623 | — | ||||||||||||
Weighted-average diluted shares outstanding | 157,159,026 | 134,007,742 | ||||||||||||
Net income (loss) per share | ||||||||||||||
Basic | $ | 0.01 | $ | (0.02) | ||||||||||
Diluted | $ | 0.01 | $ | (0.02) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Numerator: | ||||||||||||||||
Net loss | $ | (35,063 | ) | $ | (16,451 | ) | $ | (37,832 | ) | $ | (30,895 | ) | ||||
Denominator: | ||||||||||||||||
Weighted averages shares outstanding, basic and diluted | 133,981,985 | 134,050,576 | 133,996,147 | 134,051,786 | ||||||||||||
Net loss per share, basic and diluted | $ | (0.26 | ) | $ | (0.12 | ) | $ | (0.28 | ) | $ | (0.23 | ) | ||||
Three months ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Options to purchase common stock/member units | 1,655,206 | 6,235,372 | ||||||||||||
Restricted stock units | 1,034,418 | 39,025 | ||||||||||||
Total | 2,689,624 | 6,274,397 |
Three and Six Months Ended, June | ||||||||
2021 | 2020 | |||||||
Options to purchase common stock/ member units | 6,725,030 | 5,258,902 |
Fair value hierarchy | Book value | Estimated fair value | ||||||||||
Term loan (a) | ||||||||||||
December 31, 2020 | Level 2 | $ | 355,539 | $ | 375,228 | |||||||
June 30, 2021 | Level 2 | $ | 355,934 | $ | 374,216 |
March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Net revenue retention of advertising customers (%) (as of the end of the period) | 126 | % | 110 | % | ||||||||||
Total advertising customers (as of the end of the period) | 2,104 | 1,924 | ||||||||||||
Total number of large advertising customers (as of the end of the period) | 184 | 172 |
June 30, | ||||||||
2021 | 2020 | |||||||
Net Revenue retention of advertising customers (%) (as of the end of the period) | 142 | % | 123 | % | ||||
Total advertising customers (as of the end of the period) | 2,155 | 1,836 | ||||||
Total number of large advertising customers (as of the end of the period) | 187 | 154 |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
(in thousands except percentages) | ||||||||||||||
Revenue | $ | 89,242 | $ | 66,952 | ||||||||||
Operating expenses: | ||||||||||||||
Cost of revenue (excluding depreciation and amortization shown below) | 16,561 | 11,420 | ||||||||||||
Sales and marketing | 23,057 | 16,545 | ||||||||||||
Technology and development | 16,987 | 12,769 | ||||||||||||
General and administrative | 16,769 | 8,547 | ||||||||||||
Depreciation and amortization | 12,458 | 14,395 | ||||||||||||
Total operating expenses | 85,832 | 63,676 | ||||||||||||
Operating income | 3,410 | 3,276 | ||||||||||||
Interest expense, net | (1,426) | (6,960) | ||||||||||||
Net income (loss) before income taxes | 1,984 | (3,684) | ||||||||||||
(Provision) benefit from income taxes | (825) | 912 | ||||||||||||
Net income (loss) | $ | 1,159 | $ | (2,772) | ||||||||||
Net income (loss) margin | 1 | % | (4) | % |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(in thousands except percentages) | ||||||||||||||||
Revenue | $ | 75,075 | $ | 48,320 | $ | 142,027 | $ | 102,362 | ||||||||
Operating expenses: | ||||||||||||||||
Cost of revenue (excluding depreciation and amortization shown below) | 12,925 | 8,756 | 24,344 | 17,911 | ||||||||||||
Sales and marketing | 27,268 | 16,754 | 43,813 | 35,124 | ||||||||||||
Technology and development | 20,176 | 12,726 | 32,944 | 25,062 | ||||||||||||
General and administrative | 33,044 | 7,946 | 41,592 | 15,586 | ||||||||||||
Depreciation and amortization | 14,603 | 16,413 | 28,998 | 32,751 | ||||||||||||
Total operating expenses | 108,016 | 62,595 | 171,691 | 126,434 | ||||||||||||
Operating loss | (32,941 | ) | (14,275 | ) | (29,664 | ) | (24,072 | ) | ||||||||
Interest expense, net | (5,167 | ) | (7,695 | ) | (12,126 | ) | (15,953 | ) | ||||||||
Net loss before benefit from income taxes | (38,108 | ) | (21,970 | ) | (41,790 | ) | (40,025 | ) | ||||||||
Benefit from income taxes | 3,045 | 5,519 | 3,958 | 9,130 | ||||||||||||
Net loss | $ | (35,063 | ) | $ | (16,451 | ) | $ | (37,832 | ) | $ | (30,895 | ) | ||||
Net loss margin | (47 | )% | (34 | )% | (27 | )% | (30 | )% | ||||||||
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Revenue | 100 | % | 100 | % | ||||||||||
Operating expenses: | ||||||||||||||
Cost of revenue (excluding depreciation and amortization shown below) | 19 | % | 17 | % | ||||||||||
Sales and marketing | 26 | % | 25 | % | ||||||||||
Technology and development | 19 | % | 18 | % | ||||||||||
General and administrative | 19 | % | 13 | % | ||||||||||
Depreciation and amortization | 14 | % | 22 | % | ||||||||||
Total operating expenses | 96 | % | 95 | % | ||||||||||
Operating income | 4 | % | 5 | % | ||||||||||
Interest expense, net | (2) | % | (10) | % | ||||||||||
Net income (loss) before income taxes | 2 | % | (5) | % | ||||||||||
(Provision) benefit from income taxes | (1) | % | 1 | % | ||||||||||
Net income (loss) | 1 | % | (4) | % |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenue | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Operating expenses: | ||||||||||||||||
Cost of revenue (excluding depreciation and amortization shown below) | 17 | 18 | 17 | 17 | ||||||||||||
Sales and marketing | 36 | 35 | 31 | 34 | ||||||||||||
Technology and development | 27 | 26 | 23 | 24 | ||||||||||||
General and administrative | 44 | 16 | 29 | 15 | ||||||||||||
Depreciation and amortization | 19 | 34 | 20 | 32 | ||||||||||||
Total operating expenses | 144 | 130 | 121 | 124 | ||||||||||||
Operating loss | (44 | ) | (30 | ) | (21 | ) | (24 | ) | ||||||||
Interest expense, net | (7 | ) | (16 | ) | (9 | ) | (16 | ) | ||||||||
Net loss before benefit from income taxes | (51 | ) | (46 | ) | (29 | ) | (39 | ) | ||||||||
Benefit from income taxes | 4 | 12 | 3 | 9 | ||||||||||||
Net loss | (47 | )% | (34 | )% | (27 | )% | (30 | )% | ||||||||
Three Months Ended June 30, | ||||||||||||||||
2021 | 2020 | $ change | % change | |||||||||||||
(in thousands except percentages) | ||||||||||||||||
Revenue | $ | 75,075 | $ | 48,320 | $ | 26,755 | 55 | % | ||||||||
Operating expenses: | ||||||||||||||||
Cost of revenue (excluding depreciation and amortization shown below) | 12,925 | 8,756 | 4,169 | 48 | ||||||||||||
Sales and marketing | 27,268 | 16,754 | 10,514 | 63 | ||||||||||||
Technology and development | 20,176 | 12,726 | 7,450 | 59 | ||||||||||||
General and administrative | 33,044 | 7,946 | 25,098 | 316 | ||||||||||||
Depreciation and amortization | 14,603 | 16,413 | (1,810 | ) | (11 | ) | ||||||||||
Total operating expenses | 108,016 | 62,595 | 45,421 | 73 | ||||||||||||
Operating loss | (32,941 | ) | (14,275 | ) | (18,666 | ) | 131 | |||||||||
Interest expense, net | (5,167 | ) | (7,695 | ) | 2,528 | (32 | ) | |||||||||
Net loss before provision for income taxes | (38,108 | ) | (21,970 | ) | (16,138 | ) | 73 | |||||||||
Benefit from income taxes | 3,045 | 5,519 | (2,474 | ) | (45 | ) | ||||||||||
Net loss | $ | (35,063 | ) | $ | (16,451 | ) | $ | (18,612 | ) | 113 | % | |||||
Net loss margin | (47 | )% | (34 | )% | (13 | )% | 39 | % | ||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||
2022 | 2021 | $ change | % change | |||||||||||||||||||||||
(in thousands except percentages) | ||||||||||||||||||||||||||
Revenue | $ | 89,242 | $ | 66,952 | $ | 22,290 | 33 | % | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Cost of revenue (excluding depreciation and amortization shown below) | 16,561 | 11,420 | 5,141 | 45 | % | |||||||||||||||||||||
Sales and marketing | 23,057 | 16,545 | 6,512 | 39 | % | |||||||||||||||||||||
Technology and development | 16,987 | 12,769 | 4,218 | 33 | % | |||||||||||||||||||||
General and administrative | 16,769 | 8,547 | 8,222 | 96 | % | |||||||||||||||||||||
Depreciation and amortization | 12,458 | 14,395 | (1,937) | (13) | % | |||||||||||||||||||||
Total operating expenses | 85,832 | 63,676 | 22,156 | 35 | % | |||||||||||||||||||||
Operating income | 3,410 | 3,276 | 134 | 4 | % | |||||||||||||||||||||
Interest expense, net | (1,426) | (6,960) | 5,534 | (80) | % | |||||||||||||||||||||
Net income (loss) before income taxes | 1,984 | (3,684) | 5,668 | (154) | % | |||||||||||||||||||||
(Provision) benefit from income taxes | (825) | 912 | (1,737) | (190) | % | |||||||||||||||||||||
Net income (loss) | $ | 1,159 | $ | (2,772) | $ | 3,931 | (142) | % |
Three Months Ended June 30, | Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | $ change | % change | 2022 | 2021 | $ change | % change | |||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||||||||||
Programmatic revenue | Programmatic revenue | $ | 40,575 | $ | 26,574 | $ | 14,001 | 53 | % | |||||||||||||||||||||||||||||||||
Advertiser direct revenue | $ | 35,281 | $ | 25,186 | $ | 10,095 | 40 | % | Advertiser direct revenue | 34,615 | 32,598 | 2,017 | 6 | % | ||||||||||||||||||||||||||||
Programmatic revenue | 31,793 | 16,362 | 15,430 | 94 | ||||||||||||||||||||||||||||||||||||||
Supply side revenue | 8,001 | 6,772 | 1,229 | 18 | Supply side revenue | 14,052 | 7,780 | 6,272 | 81 | % | ||||||||||||||||||||||||||||||||
Total revenue | $ | 75,075 | $ | 48,320 | $ | 26,755 | 55 | % | Total revenue | $ | 89,242 | $ | 66,952 | $ | 22,290 | 33 | % | |||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||
2021 | 2020 | $ change | % change | |||||||||||||
(in thousands) | ||||||||||||||||
Revenue | $ | 142,027 | $ | 102,362 | $ | 39,665 | 39 | % | ||||||||
Operating expenses: | ||||||||||||||||
Cost of revenues (excluding depreciation and amortization shown below) | 24,344 | 17,911 | 6,433 | 36 | ||||||||||||
Sales and marketing | 43,813 | 35,124 | 8,689 | 25 | ||||||||||||
Technology and development | 32,944 | 25,062 | 7,882 | 31 | ||||||||||||
General and administrative | 41,592 | 15,586 | 26,006 | 167 | ||||||||||||
Depreciation and amortization | 28,998 | 32,751 | (3,753 | ) | (11 | ) | ||||||||||
Total operating expenses | 171,691 | 126,434 | 45,257 | 36 | ||||||||||||
Operating loss | (29,664 | ) | (24,072 | ) | (5,592 | ) | 23 | |||||||||
Interest expense, net | (12,126 | ) | (15,953 | ) | 3,827 | (24 | ) | |||||||||
Net loss before benefit from income taxes | (41,790 | ) | (40,025 | ) | (1,765 | ) | 4 | |||||||||
Benefit from income taxes | 3,958 | 9,130 | (5,172 | ) | (57 | ) | ||||||||||
Net loss | $ | (37,832 | ) | $ | (30,895 | ) | $ | (6,937 | ) | 22 | % | |||||
Net loss margin | (27 | )% | (30 | )% | 3 | % | (10 | )% | ||||||||
Six Months Ended June 30, | ||||||||||||||||
2021 | 2020 | $ change | % change | |||||||||||||
(in thousands) | ||||||||||||||||
Advertiser direct revenue | $ | 67,880 | $ | 53,484 | $ | 14,396 | 27 | % | ||||||||
Programmatic revenue | 58,367 | 34,909 | 23,458 | 67 | ||||||||||||
Supply side revenue | 15,780 | 13,969 | 1,811 | 13 | ||||||||||||
Total revenue | $ | 142,027 | $ | 102,362 | $ | 39,665 | 39 | % | ||||||||
Three Months Ended March 31, | ||||||||||||||
(in thousands) | 2022 | 2021 | ||||||||||||
Net income (loss) | $ | 1,159 | $ | (2,772) | ||||||||||
Depreciation and amortization | 12,458 | 14,395 | ||||||||||||
Stock-based compensation | 8,139 | — | ||||||||||||
Interest expense, net | 1,426 | 6,960 | ||||||||||||
(Provision) benefit from income taxes | 825 | (912) | ||||||||||||
Acquisition, restructuring and integration costs | 749 | 171 | ||||||||||||
IPO readiness costs | — | 945 | ||||||||||||
Loss on disposal of assets | 49 | — | ||||||||||||
Adjusted EBITDA | $ | 24,805 | $ | 18,787 | ||||||||||
Revenue | $ | 89,242 | $ | 66,952 | ||||||||||
Net income (loss) margin | 1 | % | (4) | % | ||||||||||
Adjusted EBITDA margin | 28 | % | 28 | % |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net loss | $ | (35,063 | ) | $ | (16,451 | ) | $ | (37,832 | ) | $ | (30,895 | ) | ||||
Depreciation and amortization | 14,603 | 16,413 | 28,998 | 32,751 | ||||||||||||
Stock-based compensation | 41,531 | — | 41,531 | — | ||||||||||||
Interest expense, net | 5,167 | 7,695 | 12,126 | 15,953 | ||||||||||||
Benefit from income taxes | (3,045 | ) | (5,519 | ) | (3,958 | ) | (9,130 | ) | ||||||||
Acquisition, restructuring and integration costs | 2,408 | 1,699 | 2,578 | 1,851 | ||||||||||||
IPO readiness costs | 93 | — | 1,038 | — | ||||||||||||
Adjusted EBITDA | $ | 25,694 | $ | 3,837 | $ | 44,481 | $ | 10,530 | ||||||||
Revenue | $ | 75,075 | $ | 48,320 | $ | 142,027 | $ | 102,362 | ||||||||
Net loss margin | (47 | )% | (34 | )% | (27 | )% | (30 | )% | ||||||||
Adjusted EBITDA margin | 34 | % | 8 | % | 32 | % | 10 | % | ||||||||
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Net cash provided by operating activities | $ | 11,187 | $ | 7,697 | ||||||||||
Net cash used in investing activities | (3,005) | (6,377) | ||||||||||||
Net cash provided by (used in) financing activities | 598 | (1,338) | ||||||||||||
Net increase (decrease) in cash and cash equivalents, and restricted cash | $ | 8,780 | $ | (18) | ||||||||||
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | 278 | (846) | ||||||||||||
Cash, cash equivalents, and restricted cash, at beginning of period | 76,078 | 54,721 | ||||||||||||
Cash, cash equivalents and restricted cash, at end of period | $ | 85,137 | $ | 53,857 |
Six Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Net cash provided by operating activities | $ | 33,056 | $ | 13,238 | ||||
Net cash used in investing activities | (8,096 | ) | (6,715 | ) | ||||
Net cash used in financing activities | (3,115 | ) | (1,072 | ) | ||||
Net increase in cash and cash equivalents, and restricted cash | $ | 21,845 | $ | 5,451 | ||||
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | (553 | ) | 76 | |||||
Cash, cash equivalents, and restricted cash, at beginning of year | 54,721 | 30,370 | ||||||
Cash, cash equivalents and restricted cash, at end of year | $ | 76,013 | $ | 35,897 | ||||
** | The certifications furnished in Exhibit 32.1 and Exhibit 32.2 hereto are deemed to accompany this Quarterly Report on Form 10-Q and will not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, except to the extent that the registrant specifically incorporates it by reference. |
Integral Ad Science Holding Corp. (Registrant) | ||||||||||||||||
Date: May 11, 2022 | By: | /s/ Joseph Pergola | ||||||||||||||
Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) |