10/29/2024 | Press release | Distributed by Public on 10/29/2024 14:13
Three Months Ended
September 30,
|
Percent Change |
Nine Months Ended
September 30,
|
Percent Change |
|||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
(in thousands, except per share amounts) | ||||||||||||
(Unaudited) | (NM = Not Meaningful) | |||||||||||
Revenue | $ | 1,372,574 | $ | 1,188,551 | 15 | % | $ | 3,804,115 | $ | 3,244,828 | 17 | % |
Operating loss | $ | (173,210) | $ | (380,063) | 54 | % | $ | (760,417) | $ | (1,149,666) | 34 | % |
Net loss | $ | (153,247) | $ | (368,256) | 58 | % | $ | (706,957) | $ | (1,074,238) | 34 | % |
Adjusted EBITDA (1)
|
$ | 131,962 | $ | 40,094 | 229 | % | $ | 232,598 | $ | 2,428 | NM | |
Net cash provided by (used in) operating activities | $ | 115,872 | $ | 12,781 | NM | $ | 182,847 | $ | 81,947 | 123 | % | |
Free Cash Flow (2)
|
$ | 71,831 | $ | (60,654) | 218 | % | $ | 36,296 | $ | (76,061) | 148 | % |
Diluted net loss per share attributable to common stockholders | $ | (0.09) | $ | (0.23) | 61 | % | $ | (0.43) | $ | (0.67) | 36 | % |
Non-GAAP diluted net income (loss) per share (3)
|
$ | 0.08 | $ | 0.02 | 300 | % | $ | 0.13 | $ | 0.01 | NM |
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||
2024 | 2023 | 2024 | 2023 | |||||
Cash flows from operating activities | ||||||||
Net loss | $ | (153,247) | $ | (368,256) | $ | (706,957) | $ | (1,074,238) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 38,850 | 41,209 | 118,493 | 116,117 | ||||
Stock-based compensation | 260,229 | 357,933 | 783,292 | 990,807 | ||||
Amortization of debt issuance costs | 2,717 | 1,842 | 6,667 | 5,517 | ||||
Losses (gains) on debt and equity securities, net | 536 | 21,155 | 12,166 | 5,888 | ||||
Other | 2,200 | (4,395) | (3,829) | (31,098) | ||||
Change in operating assets and liabilities, net of effect of acquisitions: | ||||||||
Accounts receivable, net of allowance | (51,941) | (128,972) | 73,350 | 55,772 | ||||
Prepaid expenses and other current assets | 11,914 | (837) | (36,241) | (15,139) | ||||
Operating lease right-of-use assets | 12,731 | 17,904 | 41,235 | 53,379 | ||||
Other assets | 3,090 | (2,767) | (3,007) | (3,192) | ||||
Accounts payable | (16,642) | (16,951) | (112,287) | (45,497) | ||||
Accrued expenses and other current liabilities | 19,331 | 105,907 | 46,771 | 68,697 | ||||
Operating lease liabilities | (16,384) | (16,181) | (44,254) | (52,523) | ||||
Other liabilities | 2,488 | 5,190 | 7,448 | 7,457 | ||||
Net cash provided by (used in) operating activities | 115,872 | 12,781 | 182,847 | 81,947 | ||||
Cash flows from investing activities | ||||||||
Purchases of property and equipment | (44,041) | (73,435) | (146,551) | (158,008) | ||||
Purchases of strategic investments | - | - | (2,000) | (7,770) | ||||
Sales of strategic investments | 557 | 5,151 | 1,572 | 5,151 | ||||
Cash paid for acquisitions, net of cash acquired | - | - | - | (50,254) | ||||
Purchases of marketable securities | (705,066) | (537,046) | (1,945,590) | (2,042,317) | ||||
Sales of marketable securities | 187,754 | 16,451 | 354,311 | 107,724 | ||||
Maturities of marketable securities | 337,985 | 557,579 | 1,170,066 | 2,093,737 | ||||
Other | - | (308) | (100) | (432) | ||||
Net cash provided by (used in) investing activities | (222,811) | (31,608) | (568,292) | (52,169) | ||||
Cash flows from financing activities | ||||||||
Proceeds from issuance of convertible notes, net of issuance costs | - | - | 740,350 | - | ||||
Purchase of capped calls | - | - | (68,850) | - | ||||
Proceeds from termination of capped calls | - | - | 62,683 | - | ||||
Proceeds from the exercise of stock options | 10,304 | 5 | 12,798 | 416 | ||||
Repurchases of Class A non-voting common stock | - | - | (311,069) | - | ||||
Deferred payments for acquisitions | - | (10,441) | (3,695) | (254,557) | ||||
Repurchases of convertible notes | - | - | (859,042) | - | ||||
Other | - | - | (1,799) | - | ||||
Net cash provided by (used in) financing activities | 10,304 | (10,436) | (428,624) | (254,141) | ||||
Change in cash, cash equivalents, and restricted cash | (96,635) | (29,263) | (814,069) | (224,363) | ||||
Cash, cash equivalents, and restricted cash, beginning of period | 1,065,028 | 1,228,676 | 1,782,462 | 1,423,776 | ||||
Cash, cash equivalents, and restricted cash, end of period | $ | 968,393 | $ | 1,199,413 | $ | 968,393 | $ | 1,199,413 |
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||
2024 | 2023 | 2024 | 2023 | |||||
Revenue | $ | 1,372,574 | $ | 1,188,551 | $ | 3,804,115 | $ | 3,244,828 |
Costs and expenses: | ||||||||
Cost of revenue | 638,907 | 555,753 | 1,802,577 | 1,492,613 | ||||
Research and development | 412,791 | 494,559 | 1,268,746 | 1,427,334 | ||||
Sales and marketing | 273,107 | 297,251 | 815,461 | 846,281 | ||||
General and administrative | 220,979 | 221,051 | 677,748 | 628,266 | ||||
Total costs and expenses | 1,545,784 | 1,568,614 | 4,564,532 | 4,394,494 | ||||
Operating loss | (173,210) | (380,063) | (760,417) | (1,149,666) | ||||
Interest income | 38,533 | 43,839 | 114,893 | 124,931 | ||||
Interest expense | (5,883) | (5,521) | (15,739) | (16,749) | ||||
Other income (expense), net | (4,355) | (20,662) | (25,228) | (7,967) | ||||
Loss before income taxes | (144,915) | (362,407) | (686,491) | (1,049,451) | ||||
Income tax benefit (expense) | (8,332) | (5,849) | (20,466) | (24,787) | ||||
Net loss | $ | (153,247) | $ | (368,256) | $ | (706,957) | $ | (1,074,238) |
Net loss per share attributable to Class A, Class B, and Class C common stockholders: | ||||||||
Basic | $ | (0.09) | $ | (0.23) | $ | (0.43) | $ | (0.67) |
Diluted | $ | (0.09) | $ | (0.23) | $ | (0.43) | $ | (0.67) |
Weighted average shares used in computation of net loss per share: | ||||||||
Basic | 1,663,011 | 1,625,917 | 1,651,756 | 1,603,672 | ||||
Diluted | 1,663,011 | 1,625,917 | 1,651,756 | 1,603,672 |
September 30, 2024 |
December 31, 2023 |
|||
(unaudited) | ||||
Assets | ||||
Current assets | ||||
Cash and cash equivalents | $ | 964,967 | $ | 1,780,400 |
Marketable securities | 2,227,162 | 1,763,680 | ||
Accounts receivable, net of allowance | 1,195,701 | 1,278,176 | ||
Prepaid expenses and other current assets | 200,902 | 153,587 | ||
Total current assets | 4,588,732 | 4,975,843 | ||
Property and equipment, net | 466,397 | 410,326 | ||
Operating lease right-of-use assets | 516,959 | 516,862 | ||
Intangible assets, net | 98,920 | 146,303 | ||
Goodwill | 1,693,946 | 1,691,827 | ||
Other assets | 226,463 | 226,597 | ||
Total assets | $ | 7,591,417 | $ | 7,967,758 |
Liabilities and Stockholders' Equity | ||||
Current liabilities | ||||
Accounts payable | $ | 157,471 | $ | 278,961 |
Operating lease liabilities | 21,311 | 49,321 | ||
Accrued expenses and other current liabilities | 921,393 | 805,836 | ||
Convertible senior notes, net | 36,191 | - | ||
Total current liabilities | 1,136,366 | 1,134,118 | ||
Long-term convertible senior notes, net | 3,605,137 | 3,749,400 | ||
Operating lease liabilities, noncurrent | 577,912 | 546,279 | ||
Other liabilities | 61,927 | 123,849 | ||
Total liabilities | 5,381,342 | 5,553,646 | ||
Commitments and contingencies | ||||
Stockholders' equity | ||||
Class A non-voting common stock, $0.00001 par value. 3,000,000 shares authorized, 1,465,785 shares issued, 1,418,062 shares outstanding at September 30, 2024, and 3,000,000 shares authorized, 1,440,541 shares issued, 1,391,341 shares outstanding at December 31, 2023. | 14 | 14 | ||
Class B voting common stock, $0.00001 par value. 700,000 shares authorized, 22,523 shares issued and outstanding at September 30, 2024, and 700,000 shares authorized, 22,528 shares issued and outstanding at December 31, 2023. | - | - | ||
Class C voting common stock, $0.00001 par value. 260,888 shares authorized, 231,627 shares issued and outstanding at September 30, 2024 and December 31, 2023. | 2 | 2 | ||
Treasury stock, at cost. 47,723 and 49,200 shares of Class A non-voting common stock at September 30, 2024 and December 31, 2023, respectively. | (465,502) | (479,903) | ||
Additional paid-in capital | 15,391,284 | 14,613,404 | ||
Accumulated deficit | (12,744,562) | (11,726,536) | ||
Accumulated other comprehensive income (loss) | 28,839 | 7,131 | ||
Total stockholders' equity | 2,210,075 | 2,414,112 | ||
Total liabilities and stockholders' equity | $ | 7,591,417 | $ | 7,967,758 |
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||
2024 | 2023 | 2024 | 2023 | |||||
Free Cash Flow reconciliation: | ||||||||
Net cash provided by (used in) operating activities | $ | 115,872 | $ | 12,781 | $ | 182,847 | $ | 81,947 |
Less: | ||||||||
Purchases of property and equipment | (44,041) | (73,435) | (146,551) | (158,008) | ||||
Free Cash Flow | $ | 71,831 | $ | (60,654) | $ | 36,296 | $ | (76,061) |
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||
2024 | 2023 | 2024 | 2023 | |||||
Adjusted EBITDA reconciliation: | ||||||||
Net loss | $ | (153,247) | $ | (368,256) | $ | (706,957) | $ | (1,074,238) |
Add (deduct): | ||||||||
Interest income | (38,533) | (43,839) | (114,893) | (124,931) | ||||
Interest expense | 5,883 | 5,521 | 15,739 | 16,749 | ||||
Other (income) expense, net | 4,355 | 20,662 | 25,228 | 7,967 | ||||
Income tax (benefit) expense | 8,332 | 5,849 | 20,466 | 24,787 | ||||
Depreciation and amortization | 38,850 | 41,209 | 114,878 | 116,117 | ||||
Stock-based compensation expense | 260,229 | 353,846 | 773,890 | 986,720 | ||||
Payroll and other tax expense related to stock-based compensation | 6,093 | 6,463 | 32,196 | 30,618 | ||||
Restructuring charges (1)
|
- | 18,639 | 72,051 | 18,639 | ||||
Adjusted EBITDA | $ | 131,962 | $ | 40,094 | $ | 232,598 | $ | 2,428 |
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||
2024 | 2023 | 2024 | 2023 | |||||
Depreciation and amortization expense (1):
|
||||||||
Cost of revenue | $ | 965 | $ | 3,184 | $ | 4,987 | $ | 9,580 |
Research and development | 24,798 | 26,252 | 75,305 | 75,238 | ||||
Sales and marketing | 4,953 | 5,466 | 14,614 | 16,144 | ||||
General and administrative | 8,134 | 6,307 | 23,587 | 15,155 | ||||
Total | $ | 38,850 | $ | 41,209 | $ | 118,493 | $ | 116,117 |
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||
2024 | 2023 | 2024 | 2023 | |||||
Stock-based compensation expense (1):
|
||||||||
Cost of revenue | $ | 1,333 | $ | 2,640 | $ | 4,408 | $ | 6,890 |
Research and development | 172,516 | 234,615 | 518,500 | 672,030 | ||||
Sales and marketing | 53,345 | 72,783 | 160,209 | 185,319 | ||||
General and administrative | 33,035 | 47,895 | 100,175 | 126,568 | ||||
Total | $ | 260,229 | $ | 357,933 | $ | 783,292 | $ | 990,807 |
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||
2024 | 2023 | 2024 | 2023 | |||||
Non-GAAP net income (loss) reconciliation: | ||||||||
Net loss | $ | (153,247) | $ | (368,256) | $ | (706,957) | $ | (1,074,238) |
Amortization of intangible assets | 13,889 | 19,134 | 44,282 | 55,294 | ||||
Stock-based compensation expense | 260,229 | 353,846 | 773,890 | 986,720 | ||||
Payroll and other tax expense related to stock-based compensation | 6,093 | 6,463 | 32,196 | 30,618 | ||||
Restructuring charges (1)
|
- | 18,639 | 72,051 | 18,639 | ||||
Income tax adjustments | (1,858) | (573) | (7,877) | (810) | ||||
Non-GAAP net income (loss) | $ | 125,106 | $ | 29,253 | $ | 207,585 | $ | 16,223 |
Weighted-average common shares - Diluted | 1,663,011 | 1,625,917 | 1,651,756 | 1,603,672 | ||||
Non-GAAP diluted net income (loss) per share reconciliation: | ||||||||
Diluted net loss per share | $ | (0.09) | $ | (0.23) | $ | (0.43) | $ | (0.67) |
Non-GAAP adjustment to net loss | 0.17 | 0.25 | 0.56 | 0.68 | ||||
Non-GAAP diluted net income (loss) per share | $ | 0.08 | $ | 0.02 | $ | 0.13 | $ | 0.01 |
Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | |||||||
(NM = Not Meaningful) | ||||||||||||
Cash Flows and Shares | ||||||||||||
Net cash provided by (used in) operating activities | $ | (81,936) | $ | 12,781 | $ | 164,574 | $ | 88,352 | $ | (21,377) | $ | 115,872 |
Net cash provided by (used in) operating activities - YoY (year-over-year) | 34 | % | (77) | % | 31 | % | (42) | % | 74 | % | NM | |
Net cash provided by (used in) operating activities - TTM (trailing twelve months) | $ | 250,402 | $ | 207,238 | $ | 246,521 | $ | 183,771 | $ | 244,330 | $ | 347,421 |
Purchases of property and equipment | $ | (36,943) | $ | (73,435) | $ | (53,719) | $ | (50,448) | $ | (52,062) | $ | (44,041) |
Purchases of property and equipment - YoY | 58 | % | 94 | % | 14 | % | 6 | % | 41 | % | (40) | % |
Purchases of property and equipment - TTM | $ | (169,334) | $ | (204,933) | $ | (211,727) | $ | (214,545) | $ | (229,664) | $ | (200,270) |
Free Cash Flow | $ | (118,879) | $ | (60,654) | $ | 110,855 | $ | 37,904 | $ | (73,439) | $ | 71,831 |
Free Cash Flow - YoY | 19 | % | (435) | % | 41 | % | (63) | % | 38 | % | 218 | % |
Free Cash Flow - TTM | $ | 81,068 | $ | 2,305 | $ | 34,794 | $ | (30,774) | $ | 14,666 | $ | 147,151 |
Common shares outstanding | 1,616,119 | 1,638,905 | 1,645,496 | 1,643,120 | 1,653,820 | 1,672,212 | ||||||
Common shares outstanding - YoY | (2) | % | 2 | % | 5 | % | 3 | % | 2 | % | 2 | % |
Shares underlying stock-based awards | 149,065 | 154,525 | 157,981 | 146,240 | 144,315 | 132,783 | ||||||
Shares underlying stock-based awards - YoY | 62 | % | 63 | % | 20 | % | 14 | % | (3) | % | (14) | % |
Total common shares outstanding plus shares underlying stock-based awards | 1,765,184 | 1,793,430 | 1,803,477 | 1,789,360 | 1,798,135 | 1,804,995 | ||||||
Total common shares outstanding plus shares underlying stock-based awards - YoY | 2 | % | 5 | % | 6 | % | 4 | % | 2 | % | 1 | % |
Results of Operations | ||||||||||||
Revenue | $ | 1,067,669 | $ | 1,188,551 | $ | 1,361,287 | $ | 1,194,773 | $ | 1,236,768 | $ | 1,372,574 |
Revenue - YoY | (4) | % | 5 | % | 5 | % | 21 | % | 16 | % | 15 | % |
Revenue - TTM | $ | 4,484,488 | $ | 4,544,563 | $ | 4,606,115 | $ | 4,812,280 | $ | 4,981,379 | $ | 5,165,402 |
Revenue by region (1)
|
||||||||||||
North America | $ | 686,829 | $ | 786,154 | $ | 899,542 | $ | 743,131 | $ | 767,560 | $ | 857,621 |
North America - YoY | (13) | % | (3) | % | 2 | % | 16 | % | 12 | % | 9 | % |
North America - TTM | $ | 3,018,637 | $ | 2,993,189 | $ | 3,012,421 | $ | 3,115,656 | $ | 3,196,387 | $ | 3,267,854 |
Europe | $ | 182,109 | $ | 200,272 | $ | 238,253 | $ | 195,844 | $ | 229,835 | $ | 248,902 |
Europe - YoY | 7 | % | 24 | % | 9 | % | 24 | % | 26 | % | 24 | % |
Europe - TTM | $ | 719,817 | $ | 758,693 | $ | 778,394 | $ | 816,478 | $ | 864,204 | $ | 912,834 |
Rest of World | $ | 198,731 | $ | 202,125 | $ | 223,492 | $ | 255,798 | $ | 239,373 | $ | 266,051 |
Rest of World - YoY | 28 | % | 30 | % | 11 | % | 34 | % | 20 | % | 32 | % |
Rest of World - TTM | $ | 746,034 | $ | 792,681 | $ | 815,300 | $ | 880,146 | $ | 920,788 | $ | 984,714 |
Operating loss | $ | (404,339) | $ | (380,063) | $ | (248,713) | $ | (333,232) | $ | (253,975) | $ | (173,210) |
Operating loss - YoY | (1) | % | 13 | % | 14 | % | 9 | % | 37 | % | 54 | % |
Operating loss - Margin | (38) | % | (32) | % | (18) | % | (28) | % | (21) | % | (13) | % |
Operating loss - TTM | $ | (1,492,442) | $ | (1,437,263) | $ | (1,398,379) | $ | (1,366,347) | $ | (1,215,983) | $ | (1,009,130) |
Net income (loss) | $ | (377,308) | $ | (368,256) | $ | (248,247) | $ | (305,090) | $ | (248,620) | $ | (153,247) |
Net income (loss) - YoY | 11 | % | (2) | % | 14 | % | 7 | % | 34 | % | 58 | % |
Net income (loss) - Margin | (35) | % | (31) | % | (18) | % | (26) | % | (20) | % | (11) | % |
Net income (loss) - TTM | $ | (1,353,944) | $ | (1,362,698) | $ | (1,322,485) | $ | (1,298,901) | $ | (1,170,213) | $ | (955,204) |
Adjusted EBITDA | $ | (38,479) | $ | 40,094 | $ | 159,149 | $ | 45,659 | $ | 54,977 | $ | 131,962 |
Adjusted EBITDA - YoY | (635) | % | (45) | % | (32) | % | NM | 243 | % | 229 | % | |
Adjusted EBITDA - Margin (2)
|
(4) | % | 3 | % | 12 | % | 4 | % | 4 | % | 10 | % |
Adjusted EBITDA - TTM | $ | 268,249 | $ | 235,703 | $ | 161,577 | $ | 206,423 | $ | 299,879 | $ | 391,747 |
Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | |||||||
Other | ||||||||||||
DAU (in millions) (1)
|
397 | 406 | 414 | 422 | 432 | 443 | ||||||
DAU - YoY | 14 | % | 12 | % | 10 | % | 10 | % | 9 | % | 9 | % |
DAU by region (in millions) | ||||||||||||
North America | 101 | 101 | 100 | 100 | 100 | 100 | ||||||
North America - YoY | 2 | % | 1 | % | - | % | (1) | % | - | % | - | % |
Europe | 94 | 95 | 96 | 96 | 97 | 99 | ||||||
Europe - YoY | 9 | % | 7 | % | 4 | % | 4 | % | 3 | % | 4 | % |
Rest of World | 202 | 211 | 218 | 226 | 235 | 244 | ||||||
Rest of World - YoY | 25 | % | 21 | % | 19 | % | 19 | % | 16 | % | 16 | % |
ARPU | $ | 2.69 | $ | 2.93 | $ | 3.29 | $ | 2.83 | $ | 2.86 | $ | 3.10 |
ARPU - YoY | (16) | % | (6) | % | (5) | % | 10 | % | 6 | % | 6 | % |
ARPU by region | ||||||||||||
North America | $ | 6.83 | $ | 7.82 | $ | 8.96 | $ | 7.44 | $ | 7.67 | $ | 8.54 |
North America - YoY | (14) | % | (4) | % | 2 | % | 17 | % | 12 | % | 9 | % |
Europe | $ | 1.93 | $ | 2.11 | $ | 2.49 | $ | 2.04 | $ | 2.36 | $ | 2.52 |
Europe - YoY | (2) | % | 15 | % | 5 | % | 20 | % | 22 | % | 19 | % |
Rest of World | $ | 0.98 | $ | 0.96 | $ | 1.03 | $ | 1.13 | $ | 1.02 | $ | 1.09 |
Rest of World - YoY | 3 | % | 8 | % | (7) | % | 13 | % | 4 | % | 14 | % |
Employees (full-time; excludes part-time, contractors, and temporary personnel) | 5,286 | 5,367 | 5,289 | 4,835 | 4,719 | 4,800 | ||||||
Employees - YoY | (18) | % | (6) | % | - | % | (7) | % | (11) | % | (11) | % |
Depreciation and amortization expense | ||||||||||||
Cost of revenue | $ | 3,170 | $ | 3,184 | $ | 3,171 | $ | 2,150 | $ | 1,872 | $ | 965 |
Research and development | 24,847 | 26,252 | 31,040 | 27,598 | 22,909 | 24,798 | ||||||
Sales and marketing | 5,605 | 5,466 | 10,017 | 4,577 | 5,084 | 4,953 | ||||||
General and administrative | 6,066 | 6,307 | 8,096 | 7,388 | 8,065 | 8,134 | ||||||
Total | $ | 39,688 | $ | 41,209 | $ | 52,324 | $ | 41,713 | $ | 37,930 | $ | 38,850 |
Depreciation and amortization expense - YoY | (50) | % | 14 | % | 8 | % | 18 | % | (4) | % | (6) | % |
Stock-based compensation expense | ||||||||||||
Cost of revenue | $ | 2,365 | $ | 2,640 | $ | 2,665 | $ | 1,815 | $ | 1,260 | $ | 1,333 |
Research and development | 217,565 | 234,615 | 220,996 | 174,519 | 171,465 | 172,516 | ||||||
Sales and marketing | 57,597 | 72,783 | 70,369 | 54,656 | 52,208 | 53,345 | ||||||
General and administrative | 40,416 | 47,895 | 39,167 | 32,762 | 34,378 | 33,035 | ||||||
Total | $ | 317,943 | $ | 357,933 | $ | 333,197 | $ | 263,752 | $ | 259,311 | $ | 260,229 |
Stock-based compensation expense - YoY | - | % | 4 | % | (26) | % | (16) | % | (18) | % | (27) | % |