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ironSource (IS)

Filed: 12 May 22, 9:10am

 

Filed pursuant to Rule 424(b)(3)
SEC File No. 333-258223

 

PROSPECTUS SUPPLEMENT NO. 1

(to Prospectus dated April 12, 2022)

 

 

ironSource Ltd.

 

72,661,102 CLASS A ORDINARY SHARES

 

 

This prospectus supplement updates, amends and supplements the prospectus contained in our Post-Effective Amendment No. 2 to our Registration Statement on Form F-1, effective as of April 11, 2022 (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 first quarter 2022 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 May 11, 2022, the closing price for our Class A ordinary shares on the New York Stock Exchange was $3.17 per share.

 

 

Investing in our securities involves a high degree of risk. See “Risk Factors” beginning on page 17 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 May 12, 2022.

 

 

 

IRONSOURCE LTD.

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

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

 

(Unaudited)

 

  March 31,  December 31, 
  2022  2021 
Assets        
Current assets:        
Cash and cash equivalents $441,225  $778,261 
Accounts receivable, net of allowances of $814 and $437 as of March 31, 2022 and December 31, 2021, respectively  267,603   232,049 
Other current assets  59,472   42,382 
Total current assets  768,300   1,052,692 
Long-term restricted cash  3,435   3,495 
Deferred tax assets  6,262   2,012 
Operating lease right-of-use asset  36,292   34,116 
Property, equipment and software, net  28,272   25,131 
Investment in equity securities  20,000   20,000 
Goodwill  456,354   240,299 
Intangible assets, net  197,727   54,221 
Other non-current assets  35,479   18,857 
Total assets $1,552,121  $1,450,823 

 

 

 

 

IRONSOURCE LTD.

 

CONDENSED CONSOLIDATED BALANCE SHEETS (continued)

 

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

 

(Unaudited)

 

  March 31,  December 31, 
  2022  2021 
Liabilities and shareholders’ equity        
Current liabilities:        
Accounts payable $284,689  $247,362 
Operating lease liabilities  10,082   7,525 
Other current liabilities  67,989   53,949 
Total current liabilities  362,760   308,836 
Deferred tax liabilities  11,335   6,514 
Long-term operating lease liabilities  30,296   30,076 
Other non-current liabilities  2,375   2,829 
Total liabilities  406,766   348,255 
Commitments and contingencies        
Shareholders’ equity:        
Class A and Class B ordinary shares, no par value; 11,500,000,000 (Class A 10,000,000,000 and Class B 1,500,000,000) shares authorized; 1,021,306,573 (Class A 677,342,226 and Class B 343,964,347) and 1,018,468,804 (Class A 652,938,412 and Class B 365,530,392) issued and outstanding at March 31, 2022 and December 31, 2021, respectively      
Treasury shares, at cost, 6,745,955 Class A ordinary shares held at March 31, 2022 and December 31, 2021  (67,460)  (67,460)
Additional paid-in capital  1,071,566   1,042,589 
Accumulated other comprehensive income  533   495 
Retained earnings  140,716   126,944 
Total shareholders’ equity  1,145,355   1,102,568 
Total liabilities and shareholders’ equity $1,552,121  $1,450,823 

 

 

 

 

IRONSOURCE LTD.

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

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

 

(Unaudited)

 

  Three Months Ended
March 31,
 
  2022  2021 
Revenue $189,665  $119,713 
Cost of revenue  40,087   20,140 
Gross profit  149,578   99,573 
Operating expenses:        
Research and development  34,656   20,410 
Sales and marketing  75,289   48,721 
General and administrative  22,847   15,547 
Total operating expenses  132,792   84,678 
Income from operations  16,786   14,895 
Financial expenses, net  346   1,029 
Income before income taxes  16,440   13,866 
Provision for income taxes  2,668   3,622 
Net income $13,772  $10,244 
Basic net income per ordinary share $0.01  $0.01 
Weighted-average ordinary shares outstanding – basic  1,018,117,047   645,295,222 
Diluted net income per ordinary share $0.01  $0.01 
Weighted-average ordinary shares outstanding – diluted  1,084,682,754   711,685,249 

 

 

 

 

IRONSOURCE LTD.

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(U.S. dollars in thousands)

 

(Unaudited)

 

  Three Months Ended
March 31,
 
  2022  2021 
Cash flows from operating activities        
Net income $13,772  $10,244 
Adjustments to reconcile net income to net cash provided by operating activities:        
Depreciation and amortization  13,735   5,343 
Share-based compensation expenses  24,385   16,810 
Non-cash lease expense  184   227 
Effect of exchange rate changes on cash and cash equivalents and restricted cash  1,317   (1,246)
Loss on disposal of property and equipment  2    
Interest accrued and other financial expenses     107 
Deferred income taxes, net  (3,835)  (827)
Changes in operating assets and liabilities, net of effects of businesses acquired:        
Accounts receivable  16,470   (851)
Other current assets  (16,151)  (14,750)
Other non-current assets  (17,447)  (3,297)
Accounts payable  (4,985)  (6,657)
Other current liabilities  (6,595)  5,851 
Other non-current liabilities  (258)  199 
Net cash provided by continuing operating activities  20,594   11,153 
Net cash used in discontinued operating activities     (5,168)
Net cash provided by operating activities  20,594   5,985 
Cash flows from investing activities        
Purchase of property and equipment  (1,382)  (473)
Capitalized software development costs  (3,848)  (3,015)
Purchase of intangible assets     (1,950)
Acquisitions, net of cash acquired  (353,626)  (89,340)
Maturities of short-term deposits     17,590 
Net cash used in continuing investing activities  (358,856)  (77,188)
Net cash (used in) discontinued investing activities      
Net cash used in investing activities  (358,856)  (77,188)
Cash flows from financing activities        
Repayment of long-term loan     (2,500)
Payments of deferred offering costs     (1,060)
Exercise of options  2,483   297 
Net cash provided by (used in) continuing financing activities  2,483   (3,263)
Net cash provided by (used in) discontinued financing activities      
Net cash provided by (used in) financing activities  2,483   (3,263)
Effect of exchange rate changes on cash and cash equivalents and restricted cash  (1,317)  1,246 
Net change in cash and cash equivalents and restricted cash  (335,779)  (74,466)
Cash and cash equivalents and restricted cash at beginning of period  781,756   203,087 
Cash and cash equivalents and restricted cash at end of period $444,660  $129,867