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ironSource (IS)

Filed: 16 Feb 22, 7:43am

 


Filed pursuant to Rule 424(b)(3)

SEC File No. 333-258223

 

PROSPECTUS SUPPLEMENT NO. 3

(to Prospectus dated October 5, 2021)

 

 

 

ironSource Ltd.

102,869,375 CLASS A ORDINARY SHARES

 

 

 

This prospectus supplement updates, amends and supplements the prospectus contained in our Post-Effective Amendment No. 1 to our Registration Statement on Form F-1, effective as of October 4, 2021 (as supplemented or amended from time to time, the “Prospectus”) (Registration No. 333-258223). Capitalized terms used in this prospectus supplement and not otherwise defined herein have the meanings specified in the Prospectus.

 

This prospectus supplement is being filed to update, amend and supplement the information included in the Prospectus with information on ironSource’s fourth quarter and year-end 2021 financial results, which is set forth below.

 

This prospectus supplement is not complete without the Prospectus. This prospectus supplement should be read in conjunction with the Prospectus, which is to be delivered with this prospectus supplement, and is qualified by reference thereto, except to the extent that the information in this prospectus supplement updates or supersedes the information contained in the Prospectus. Please keep this prospectus supplement with your Prospectus for future reference.

 

Our Class A ordinary shares are listed on the New York Stock Exchange under the symbol “IS.” On February 15, 2022, the closing price for our Class A ordinary shares on the New York Stock Exchange was $6.94 per share.

 

 

 

Investing in our securities involves a high degree of risk. See “Risk Factors” beginning on page 28 of the Prospectus and other risk factors contained in the documents incorporated by reference therein for a discussion of information that should be considered in connection with an investment in our securities.

 

Neither the Securities and Exchange Commission, the Israeli Securities Authority nor any state securities commission has approved or disapproved of these securities or determined if the Prospectus or this prospectus supplement is truthful or complete. Any representation to the contrary is a criminal offense.

 

 

 

The date of this prospectus supplement is February 16, 2022.

 

 

 

 

IRONSOURCE LTD.

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

(U.S. dollars in thousands, except for number of shares and par value)

 

(Unaudited)

 

  December 31, 
  2021  2020 
Assets      
Current assets:        
Cash and cash equivalents $778,261  $200,672 
Short-term deposits     17,627 
Accounts receivable, net of allowances of $437 and $724 as of December 31, 2021 and 2020, respectively  232,049   151,503 
Other current assets  42,382   15,711 
Total current assets  1,052,692   385,513 
Long-term restricted cash  3,495   2,415 
Deferred tax assets  2,012   161 
Operating lease right-of-use asset  34,116   36,780 
Property, equipment and software, net  25,131   23,077 
Investment in equity securities  20,000    
Goodwill  240,299   79,156 
Intangible assets, net  54,221   8,084 
Other non-current assets  18,857   650 
Total assets $1,450,823  $535,836 

 

 

 

 

IRONSOURCE LTD.

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

(U.S. dollars in thousands, except for number of shares and par value)

 

(Unaudited)

 

  December 31, 
  2021  2020 
Liabilities and shareholders’ equity        
Current liabilities:        
Accounts payable $247,362  $155,476 
Current maturities of long-term loan     9,725 
Operating lease liabilities  7,525   7,429 
Other current liabilities  53,949   34,034 
Total current liabilities  308,836   206,664 
Long-term loan, net of current maturities     74,684 
Deferred tax liabilities  6,514   2,521 
Long-term operating lease liabilities  30,076   32,241 
Other non-current liabilities  2,829   280 
Total liabilities  348,255   316,390 
Commitments and contingencies        
Shareholders’ equity:        
Class A and Class B ordinary share, no par value; 11,500,000,000 (Class A 10,000,000,000 and Class B 1,500,000,000) shares authorized; 1,018,468,804 (Class A 652,938,412 and Class B 365,530,392) and 640,266,044 (Class A 320,133,022 and Class B 320,133,022) issued and outstanding at December 31, 2021 and 2020, respectively (*)      
2019 ordinary shares, NIS 0.01 par value, 25,006,298 authorized, issued and outstanding at December 31, 2020     72 
Treasury shares, at cost, 6,745,955 Class A ordinary shares held at December 31, 2021  (67,460)   
Additional paid-in capital (*)   1,042,589   152,251 
Accumulated other comprehensive income  495    
Retained earnings  126,944   67,123 
Total shareholders’ equity  1,102,568   219,446 
Total liabilities and shareholders’ equity $1,450,823  $535,836 

 

(*) Per share amounts have been adjusted, on a retroactive basis, for all periods presented, to reflect both the distribution of Class B ordinary shares and the Stock Split, together representing a ratio of 9.98 of each share.

 

 

 

 

IRONSOURCE LTD.

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

(U.S. dollars in thousands, except share and per share amounts)

 

(Unaudited)

 

  Three Months Ended
December 31,
  Year Ended December 31, 
  2021  2020  2021  2020 
Revenue $158,271  $108,354  $553,466  $331,519 
Cost of revenue  24,562   17,306   89,223   57,825 
Gross profit  133,709   91,048   464,243   273,694 
Operating expenses:                
Research and development  22,887   17,149   90,531   51,600 
Sales and marketing  56,804   42,046   208,707   119,262 
General and administrative  26,193   8,910   82,638   28,746 
Total operating expenses  105,884   68,105   381,876   199,608 
Income from operations  27,825   22,943   82,367   74,086 
Financial expenses, net  (57)  1,771   2,004   4,381 
Income from continuing operations before income taxes  27,882   21,172   80,363   69,705 
Income taxes  7,077   3,852   20,542   10,896 
Income from continuing operations, net of income taxes  20,805   17,320   59,821   58,809 
Income from discontinued operations, net of income taxes     4,701      36,480 
Net income $20,805  $22,021  $59,821  $95,289 
Basic net income per ordinary share: (*)                 
Continuing operations  0.02   0.02   0.07   0.07 
Discontinued operations     0.01      0.04 
Basic net income per ordinary share $0.02  $0.03  $0.07  $0.11 
Weighted-average ordinary shares outstanding – basic  1,014,509,223   639,223,211   832,144,353   636,450,643 
Diluted net income per ordinary share: (*)                 
Continuing operations  0.02   0.02   0.06   0.06 
Discontinued operations     0.01      0.04 
Diluted net income per ordinary share $0.02  $0.03  $0.06  $0.10 
Weighted-average ordinary shares outstanding – diluted  1,094,974,000   689,922,172   911,059,088   681,900,332 

 

(*) Per share amounts have been adjusted, on a retroactive basis, for all periods presented, to reflect both the distribution of Class B ordinary shares and the Stock Split, together representing a ratio of 9.98 of each share.

 

 

 

 

IRONSOURCE LTD.

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(U.S. dollars in thousands)

 

(Unaudited)

 

  Three Months Ended
December 31,
  Year Ended December 31, 
  2021  2020  2021  2020 
Cash flows from operating Activities                
Net income from continuing operations $20,805  $17,320  $59,821  $58,809 
Adjustments to reconcile net income to net cash provided by operating activities:                
Depreciation and amortization  6,690   4,628   24,118   16,858 
Share-based compensation expenses  20,714   5,005   78,515   12,596 
Non-cash lease expense  1,134   2,471   595   2,791 
Effect of exchange rate changes on cash and cash equivalents and restricted cash  (1,812)  (1,407)  (2,627)  (1,395)
Loss (gain) on disposal of property and equipment  1      (16)   
Interest accrued and other financial expenses     110   628   271 
Deferred income taxes, net  1,178   665   644   (633)
Changes in operating assets and liabilities, net of effects of businesses acquired:                
Accounts receivable  (41,568)  (25,435)  (82,584)  (39,816)
Other current assets  (10,261)  (6,426)  (27,721)  (5,771)
Other non-current assets  (11,388)  (1,746)  (21,442)  (3,913)
Accounts payable  33,932   23,450   97,701   40,706 
Other current liabilities  8,886   6,690   14,553   11,118 
Other non-current liabilities  1,274   4   1,705   35 
Net cash provided by continuing operating activities  29,585   25,329   143,890   91,656 
Net cash provided by (used in) discontinued operating activities     6,188   (5,168)  52,771 
Net cash provided by operating activities  29,585   31,517   138,722   144,427 
Cash flows from investing activities                
Purchase of property and equipment  (391)  (94)  (1,419)  (1,049)
Capitalized software development costs  (2,662)  (2,968)  (10,821)  (12,024)
Purchase of intangible assets        (1,950)   
Proceeds from sale of property and equipment  10      31    
Acquisitions, net of cash acquired  (38,209)     (127,549)   
Purchase of equity investment        (20,000)   
Investments in short-term deposits     (17,590)     (60,180)
Maturities of short-term deposits     37,590   17,590   50,690 
Net cash provided by (used in) continuing investing activities  (41,252)  16,938   (144,118)  (22,563)
Net cash provided by (used in) discontinued investing activities     (928)     (5,082)
Net cash provided by (used in) investing activities  (41,252)  16,010   (144,118)  (27,645)
Cash flows from financing activities                
Repayment of long-term loan     (2,500)  (85,000)  (7,500)
Proceeds from Recapitalization transaction, net        663,813    
Exercise of options and restricted share units  738   827   2,625   1,731 
Other     (540)     (540)
Net cash provided by (used in) continuing financing activities  738   (2,213)  581,438   (6,309)
Net cash provided by (used in) discontinued financing activities            
Net cash provided by (used in) financing activities  738   (2,213)  581,438   (6,309)
Effect of exchange rate changes on cash and cash equivalents and restricted cash  1,812   1,407   2,627   1,395 
Net change in cash and cash equivalents and restricted cash  (10,929)  45,314   576,042   110,473 
Cash and cash equivalents and restricted cash at beginning of the period  790,873   156,366   203,087   91,219 
Cash and cash equivalents and restricted cash at end of the period $781,756  $203,087  $781,756  $203,087