08/08/2024 | Press release | Distributed by Public on 08/08/2024 09:53
$ in millions
|
3Q 2024
|
3Q 2023
|
YoY Change
|
Revenue1
|
~$193 - $197
|
$180.0
|
~7% - 9%
|
Adjusted Revenue1
|
~$193 - $197
|
$190.0
|
~2% - 4%
|
Adjusted EBITDA Margin3
|
~32%
|
||
$ in millions
|
FY 2024
|
FY 2023
|
YoY Change
|
Revenue1
|
Low end of our previous
~$800 - $810 range
|
$750.3
|
Low end of our previous
~7% - 8% range
|
Adjusted Revenue1
|
Low end of our previous
~$800 - $810 range
|
$760.3
|
Low end of our previous
~5% - 7% range
|
Adjusted EBITDA3
|
>$255
|
Three Months Ended
|
||||||
(in millions)
|
June 30,
2024
|
March 31,
2024
|
December 31,
2023
|
September 30,
2023
|
June 30,
2023
|
March 31,
2023
|
Monthly Active Consumers
|
6.6
|
6.7
|
6.4
|
6.1
|
6.1
|
6.1
|
As of
|
||||||
(in thousands)
|
June 30,
2024
|
March 31,
2024
|
December 31,
2023
|
September 30,
2023
|
June 30,
2023
|
March 31,
2023
|
Subscription plans
|
696
|
778
|
884
|
930
|
969
|
1,007
|
(in thousands, except par values)
|
||
June 30, 2024
|
December 31, 2023
|
|
Assets
|
||
Current assets
|
||
Cash and cash equivalents
|
$524,903
|
$672,296
|
Accounts receivable, net
|
161,774
|
143,608
|
Prepaid expenses and other current assets
|
63,878
|
56,886
|
Total current assets
|
750,555
|
872,790
|
Property and equipment, net
|
14,495
|
15,932
|
Goodwill
|
410,769
|
410,769
|
Intangible assets, net
|
56,022
|
60,898
|
Capitalized software, net
|
111,774
|
95,439
|
Operating lease right-of-use assets, net
|
29,893
|
29,929
|
Deferred tax assets, net
|
65,268
|
65,268
|
Other assets
|
36,614
|
37,775
|
Total assets
|
$1,475,390
|
$1,588,800
|
Liabilities and stockholders' equity
|
||
Current liabilities
|
||
Accounts payable
|
$16,884
|
$36,266
|
Accrued expenses and other current liabilities
|
73,172
|
71,329
|
Current portion of debt
|
7,029
|
8,787
|
Operating lease liabilities, current
|
5,388
|
6,177
|
Total current liabilities
|
102,473
|
122,559
|
Debt, net
|
645,648
|
647,703
|
Operating lease liabilities, net of current portion
|
49,316
|
48,403
|
Other liabilities
|
8,554
|
8,177
|
Total liabilities
|
805,991
|
826,842
|
Stockholders' equity
|
||
Preferred stock, $0.0001 par value
|
-
|
-
|
Common stock, $0.0001 par value
|
38
|
40
|
Additional paid-in capital
|
2,121,079
|
2,219,321
|
Accumulated deficit
|
(1,451,718)
|
(1,457,403)
|
Total stockholders' equity
|
669,399
|
761,958
|
Total liabilities and stockholders' equity
|
$1,475,390
|
$1,588,800
|
(in thousands, except per share amounts)
|
||||
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||
2024
|
2023
|
2024
|
2023
|
|
Revenue
|
$200,610
|
$189,677
|
$398,490
|
$373,663
|
Costs and operating expenses:
|
||||
Cost of revenue, exclusive of depreciation and
amortization presented separately below
|
11,870
|
16,339
|
24,338
|
33,034
|
Product development and technology
|
30,854
|
31,285
|
61,871
|
64,193
|
Sales and marketing
|
93,454
|
77,440
|
183,418
|
155,962
|
General and administrative
|
27,589
|
30,208
|
68,697
|
59,827
|
Depreciation and amortization
|
16,965
|
16,097
|
32,907
|
31,036
|
Total costs and operating expenses
|
180,732
|
171,369
|
371,231
|
344,052
|
Operating income
|
19,878
|
18,308
|
27,259
|
29,611
|
Other expense, net:
|
||||
Other expense
|
-
|
-
|
-
|
(1,808)
|
Interest income
|
6,334
|
7,814
|
13,889
|
15,048
|
Interest expense
|
(14,566)
|
(14,054)
|
(29,209)
|
(27,187)
|
Total other expense, net
|
(8,232)
|
(6,240)
|
(15,320)
|
(13,947)
|
Income before income taxes
|
11,646
|
12,068
|
11,939
|
15,664
|
Income tax (expense) benefit
|
(4,952)
|
46,718
|
(6,254)
|
39,832
|
Net income
|
$6,694
|
$58,786
|
$5,685
|
$55,496
|
Earnings per share:
|
||||
Basic
|
$0.02
|
$0.14
|
$0.01
|
$0.13
|
Diluted
|
$0.02
|
$0.14
|
$0.01
|
$0.13
|
Weighted average shares used in computing
earnings per share:
|
||||
Basic
|
376,254
|
412,221
|
386,153
|
412,322
|
Diluted
|
384,732
|
414,335
|
393,620
|
414,373
|
Stock-based compensation included in costs and
operating expenses:
|
||||
Cost of revenue
|
$64
|
$180
|
$140
|
$341
|
Product development and technology
|
6,259
|
7,534
|
12,107
|
16,123
|
Sales and marketing
|
9,396
|
(3,020)
|
17,523
|
1,392
|
General and administrative
|
10,871
|
13,203
|
21,916
|
25,540
|
(in thousands)
|
||
Six Months Ended
June 30,
|
||
2024
|
2023
|
|
Cash flows from operating activities
|
||
Net income
|
$5,685
|
$55,496
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
||
Depreciation and amortization
|
32,907
|
31,036
|
Amortization of debt issuance costs
|
1,663
|
1,695
|
Non-cash operating lease expense
|
1,930
|
2,055
|
Stock-based compensation expense
|
51,686
|
43,396
|
Deferred income taxes
|
-
|
(62,980)
|
Loss on operating lease assets
|
-
|
374
|
Loss on minority equity interest investment
|
-
|
1,808
|
Changes in operating assets and liabilities
|
||
Accounts receivable
|
(18,166)
|
(6,237)
|
Prepaid expenses and other assets
|
(5,981)
|
(13,574)
|
Accounts payable
|
(18,017)
|
(10,972)
|
Accrued expenses and other current liabilities
|
1,973
|
18,418
|
Operating lease liabilities
|
(1,770)
|
(665)
|
Other liabilities
|
377
|
2,304
|
Net cash provided by operating activities
|
52,287
|
62,154
|
Cash flows from investing activities
|
||
Purchase of property and equipment
|
(675)
|
(440)
|
Capitalized software
|
(37,169)
|
(28,807)
|
Net cash used in investing activities
|
(37,844)
|
(29,247)
|
Cash flows from financing activities
|
||
Payments on long-term debt
|
(5,273)
|
(3,515)
|
Repurchases of Class A common stock
|
(153,226)
|
(18,437)
|
Proceeds from exercise of stock options
|
11,772
|
1,267
|
Employee taxes paid related to net share settlement of equity awards
|
(15,966)
|
(8,048)
|
Proceeds from employee stock purchase plan
|
857
|
649
|
Net cash used in financing activities
|
(161,836)
|
(28,084)
|
Net change in cash and cash equivalents
|
(147,393)
|
4,823
|
Cash and cash equivalents
|
||
Beginning of period
|
672,296
|
757,165
|
End of period
|
$524,903
|
$761,988
|
(dollars in thousands)
|
||||
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||
2024
|
2023
|
2024
|
2023
|
|
Net income
|
$6,694
|
$58,786
|
$5,685
|
$55,496
|
Adjusted to exclude the following:
|
||||
Interest income
|
(6,334)
|
(7,814)
|
(13,889)
|
(15,048)
|
Interest expense
|
14,566
|
14,054
|
29,209
|
27,187
|
Income tax expense (benefit)
|
4,952
|
(46,718)
|
6,254
|
(39,832)
|
Depreciation and amortization
|
16,965
|
16,097
|
32,907
|
31,036
|
Other expense
|
-
|
-
|
-
|
1,808
|
Financing related expenses
|
392
|
-
|
832
|
-
|
Acquisition related expenses
|
174
|
385
|
348
|
1,441
|
Restructuring related expenses
|
566
|
-
|
441
|
-
|
Legal settlement expenses
|
-
|
-
|
13,000
|
-
|
Stock-based compensation expense
|
26,590
|
17,897
|
51,686
|
43,396
|
Payroll tax expense related to stock-based
compensation
|
847
|
405
|
1,726
|
845
|
Loss on operating lease assets
|
-
|
374
|
-
|
374
|
Adjusted EBITDA
|
$65,412
|
$53,466
|
$128,199
|
$106,703
|
Revenue and Adjusted Revenue (1)
|
$200,610
|
$189,677
|
$398,490
|
$373,663
|
Net income margin
|
3.3%
|
31.0%
|
1.4%
|
14.9%
|
Adjusted EBITDA Margin
|
32.6%
|
28.2%
|
32.2%
|
28.6%
|
(dollars in thousands, except per share amounts)
|
||||
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||
2024
|
2023
|
2024
|
2023
|
|
Net income
|
$6,694
|
$58,786
|
$5,685
|
$55,496
|
Adjusted to exclude the following:
|
||||
Amortization of intangibles related to acquisitions
|
2,100
|
5,599
|
4,876
|
11,208
|
Other expense
|
-
|
-
|
-
|
1,808
|
Financing related expenses
|
392
|
-
|
832
|
-
|
Acquisition related expenses
|
174
|
385
|
348
|
1,441
|
Restructuring related expenses
|
566
|
-
|
441
|
-
|
Legal settlement expenses
|
-
|
-
|
13,000
|
-
|
Stock-based compensation expense
|
26,590
|
17,897
|
51,686
|
43,396
|
Payroll tax expense related to stock-based
compensation
|
847
|
405
|
1,726
|
845
|
Loss on operating lease assets
|
-
|
374
|
-
|
374
|
Income tax effects of excluded items and
adjustments for valuation allowance and excess tax
benefits/deficiencies from equity awards
|
(4,991)
|
(55,059)
|
(13,636)
|
(56,666)
|
Adjusted Net Income
|
$32,372
|
$28,387
|
$64,958
|
$57,902
|
Revenue and Adjusted Revenue (1)
|
$200,610
|
$189,677
|
$398,490
|
$373,663
|
Net income margin
|
3.3%
|
31.0%
|
1.4%
|
14.9%
|
Adjusted Net Income Margin
|
16.1%
|
15.0%
|
16.3%
|
15.5%
|
Weighted average shares used in computing
earnings per share:
|
||||
Basic
|
376,254
|
412,221
|
386,153
|
412,322
|
Diluted
|
384,732
|
414,335
|
393,620
|
414,373
|
Earnings per share:
|
||||
Basic
|
$0.02
|
$0.14
|
$0.01
|
$0.13
|
Diluted
|
$0.02
|
$0.14
|
$0.01
|
$0.13
|
Weighted average shares used in computing
Adjusted Earnings Per Share:
|
||||
Basic
|
376,254
|
412,221
|
386,153
|
412,322
|
Diluted
|
384,732
|
414,335
|
393,620
|
414,373
|
Adjusted Earnings Per Share:
|
||||
Basic
|
$0.09
|
$0.07
|
$0.17
|
$0.14
|
Diluted
|
$0.08
|
$0.07
|
$0.17
|
$0.14
|
(dollars in thousands)
|
||||||||
GAAP
|
Adjusted
|
GAAP
|
Adjusted
|
|||||
Three Months Ended
June 30,
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||
2024
|
2023
|
2024
|
2023
|
2024
|
2023
|
2024
|
2023
|
|
Cost of revenue
|
$11,870
|
$16,339
|
$11,801
|
$16,145
|
$24,338
|
$33,034
|
$24,497
|
$32,677
|
% of Revenue (GAAP) /
Adjusted Revenue (Adjusted)
|
6%
|
9%
|
6%
|
9%
|
6%
|
9%
|
6%
|
9%
|
Product development and technology
|
$30,854
|
$31,285
|
$24,087
|
$23,470
|
$61,871
|
$64,193
|
$48,665
|
$47,380
|
% of Revenue (GAAP) /
Adjusted Revenue (Adjusted)
|
15%
|
16%
|
12%
|
12%
|
16%
|
17%
|
12%
|
13%
|
Sales and marketing
|
$93,454
|
$77,440
|
$83,752
|
$80,393
|
$183,418
|
$155,962
|
$165,148
|
$154,417
|
% of Revenue (GAAP) /
Adjusted Revenue (Adjusted)
|
47%
|
41%
|
42%
|
42%
|
46%
|
42%
|
41%
|
41%
|
General and administrative
|
$27,589
|
$30,208
|
$15,558
|
$16,203
|
$68,697
|
$59,827
|
$31,981
|
$32,486
|
% of Revenue (GAAP) /
Adjusted Revenue (Adjusted)
|
14%
|
16%
|
8%
|
9%
|
17%
|
16%
|
8%
|
9%
|
Depreciation and amortization
|
$16,965
|
$16,097
|
$14,865
|
$10,498
|
$32,907
|
$31,036
|
$28,031
|
$19,828
|
% of Revenue (GAAP) /
Adjusted Revenue (Adjusted)
|
8%
|
8%
|
7%
|
6%
|
8%
|
8%
|
7%
|
5%
|
Operating income
|
$19,878
|
$18,308
|
$50,547
|
$42,968
|
$27,259
|
$29,611
|
$100,168
|
$86,875
|
% of Revenue (GAAP) /
Adjusted Revenue (Adjusted)
|
10%
|
10%
|
25%
|
23%
|
7%
|
8%
|
25%
|
23%
|
(dollars in thousands)
|
||||
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||
2024
|
2023
|
2024
|
2023
|
|
Cost of revenue
|
$11,870
|
$16,339
|
$24,338
|
$33,034
|
Restructuring related expenses
|
-
|
-
|
311
|
-
|
Stock-based compensation expense
|
(64)
|
(180)
|
(140)
|
(341)
|
Payroll tax expense related to stock-based
compensation
|
(5)
|
(14)
|
(12)
|
(16)
|
Adjusted cost of revenue
|
$11,801
|
$16,145
|
$24,497
|
$32,677
|
Product development and technology
|
$30,854
|
$31,285
|
$61,871
|
$64,193
|
Acquisition related expenses
|
(26)
|
(79)
|
(52)
|
(279)
|
Restructuring related expenses
|
(20)
|
-
|
(112)
|
-
|
Stock-based compensation expense
|
(6,259)
|
(7,534)
|
(12,107)
|
(16,123)
|
Payroll tax expense related to stock-based
compensation
|
(462)
|
(202)
|
(935)
|
(411)
|
Adjusted product development and technology
|
$24,087
|
$23,470
|
$48,665
|
$47,380
|
Sales and marketing
|
$93,454
|
$77,440
|
$183,418
|
$155,962
|
Acquisition related expenses
|
(148)
|
-
|
(296)
|
-
|
Restructuring related expenses
|
-
|
-
|
(114)
|
-
|
Stock-based compensation expense
|
(9,396)
|
3,020
|
(17,523)
|
(1,392)
|
Payroll tax expense related to stock-based
compensation
|
(158)
|
(67)
|
(337)
|
(153)
|
Adjusted sales and marketing
|
$83,752
|
$80,393
|
$165,148
|
$154,417
|
General and administrative
|
$27,589
|
$30,208
|
$68,697
|
$59,827
|
Financing related expenses
|
(392)
|
-
|
(832)
|
-
|
Acquisition related expenses
|
-
|
(306)
|
-
|
(1,162)
|
Restructuring related expenses
|
(546)
|
-
|
(526)
|
-
|
Legal settlement expenses
|
-
|
-
|
(13,000)
|
-
|
Stock-based compensation expense
|
(10,871)
|
(13,203)
|
(21,916)
|
(25,540)
|
Payroll tax expense related to stock-based
compensation
|
(222)
|
(122)
|
(442)
|
(265)
|
Loss on operating lease assets
|
-
|
(374)
|
-
|
(374)
|
Adjusted general and administrative
|
$15,558
|
$16,203
|
$31,981
|
$32,486
|
Depreciation and amortization
|
$16,965
|
$16,097
|
$32,907
|
$31,036
|
Amortization of intangibles related to acquisitions
|
(2,100)
|
(5,599)
|
(4,876)
|
(11,208)
|
Adjusted depreciation and amortization
|
$14,865
|
$10,498
|
$28,031
|
$19,828
|
Operating income
|
$19,878
|
$18,308
|
$27,259
|
$29,611
|
Amortization of intangibles related to acquisitions
|
2,100
|
5,599
|
4,876
|
11,208
|
Financing related expenses
|
392
|
-
|
832
|
-
|
Acquisition related expenses
|
174
|
385
|
348
|
1,441
|
Restructuring related expenses
|
566
|
-
|
441
|
-
|
Legal settlement expenses
|
-
|
-
|
13,000
|
-
|
Stock-based compensation expense
|
26,590
|
17,897
|
51,686
|
43,396
|
Payroll tax expense related to stock-based
compensation
|
847
|
405
|
1,726
|
845
|
Loss on operating lease assets
|
-
|
374
|
-
|
374
|
Adjusted operating income
|
$50,547
|
$42,968
|
$100,168
|
$86,875
|