8-K
false000170173200017017322023-08-032023-08-03

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 03, 2023

 

 

Altair Engineering Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware

001-38263

38-2591828

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

1820 E. Big Beaver Road

 

Troy, Michigan

 

48083

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (248) 614-2400

 

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class

 

Trading
Symbol(s)

 


Name of each exchange on which registered

Class A Common Stock $0.0001 par value per share

 

ALTR

 

The Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 


Item 2.02. Results of Operations and Financial Condition.

 

On August 3, 2023, Altair Engineering Inc. issued a press release disclosing its financial information and operating metrics for its second quarter and six months ended June 30, 2023. A copy of the press release is being furnished as Exhibit 99.1 to this Report on Form 8-K.

 

The information in this Report on Form 8-K and Exhibit 99.1 attached hereto is intended to be furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

 

Item 9.01. Financial Statements and Exhibits.

 

Exhibit 99.1

Press Release issued by Altair Engineering Inc. dated August 3, 2023, furnished hereto.

Exhibit 104

Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 


SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

ALTAIR ENGINEERING INC.

Date: August 3, 2023

By:

/s/ Matthew Brown

Matthew Brown

Chief Financial Officer

 

 

 

 

 

 

 

 

 

 


EX-99.1

 

Exhibit 99.1

Altair Announces Second Quarter 2023 Financial Results

Software Product Revenue and Total Revenue Above the High End of Guidance Range

TROY, Mich. – August 3, 2023 – Altair (Nasdaq: ALTR), a global leader in computational science and artificial intelligence, today released its financial results for the second quarter and six months ended June 30, 2023.

“Altair had a solid second quarter of 2023, with software product revenue and total revenue above the high end of guidance,” said James Scapa, founder, chairman and chief executive officer of Altair. “Our Q2 performance aligns well with our guidance for the full year and demonstrates our continued success and strength.”

“We’re pleased with the outperformance we’ve seen in the first half of the year,” said Matt Brown, chief financial officer of Altair. “Our strong first half has been fueled by growth across a number of verticals and particularly in aerospace, defense, technology, and automotive, where demand for our products is robust.”

Second Quarter 2023 Financial Highlights

Software product revenue was $125.3 million compared to $116.9 million for the second quarter of 2022, an increase of 7.2% in reported currency and 9.4% in constant currency
Total revenue was $141.2 million compared to $132.7 million for the second quarter of 2022, an increase of 6.4% in reported currency and 8.4% in constant currency
Net loss was $(22.3) million compared to net loss of $(33.8) million for the second quarter of 2022. Net loss per share, diluted was $(0.28) based on 80.0 million diluted weighted average common shares outstanding, compared to net loss per share, diluted of $(0.43) for the second quarter of 2022, based on 78.9 million diluted weighted average common shares outstanding. Net loss margin was -15.8% compared to net loss margin of -25.5% for the second quarter of 2022
Non-GAAP net income was $13.2 million, compared to non-GAAP net income of $10.9 million for the second quarter of 2022, an increase of 21.6%. Non-GAAP net income per share, diluted was $0.15 based on 88.4 million non-GAAP diluted common shares outstanding, compared to non-GAAP net income per share, diluted of $0.13 for the second quarter of 2022, based on 86.3 million non-GAAP diluted common shares outstanding
Adjusted EBITDA was $17.1 million compared to $16.4 million for the second quarter of 2022, an increase of 3.7%. Adjusted EBITDA margin was 12.1% compared to 12.4% for the second quarter of 2022
Cash provided by operating activities was $30.0 million, compared to $12.3 million for the second quarter of 2022
Free cash flow was $25.6 million, compared to $11.0 million for the second quarter of 2022.

 


 

Business Outlook

Based on information available as of today, Altair is issuing the following guidance for the third quarter and full year 2023:

 

(in millions, except %)

 

Third Quarter 2023

 

 

Full Year 2023

 

Software Product Revenue

 

$

111

 

to

$

113

 

 

$

548

 

to

$

558

 

Growth Rate

 

 

7.0

%

 

 

8.9

%

 

 

8.2

%

 

 

10.2

%

Growth Rate - Constant Currency

 

 

5.8

%

 

 

7.7

%

 

 

9.1

%

 

 

11.0

%

Total Revenue

 

$

126

 

 

$

128

 

 

$

611

 

 

$

621

 

Growth Rate

 

 

5.6

%

 

 

7.2

%

 

 

6.8

%

 

 

8.5

%

Growth Rate - Constant Currency

 

 

4.4

%

 

 

6.1

%

 

 

7.5

%

 

 

9.3

%

Net Loss

 

$

(22.8

)

 

$

(20.9

)

 

$

(15.3

)

 

$

(5.6

)

Non-GAAP Net Income

 

$

2.9

 

 

$

4.4

 

 

$

89.9

 

 

$

97.3

 

Adjusted EBITDA

 

$

3

 

 

$

5

 

 

$

119

 

 

$

129

 

Net Cash Provided by Operating Activities

 

 

 

 

 

 

 

$

120

 

 

$

128

 

Free Cash Flow

 

 

 

 

 

 

 

$

108

 

 

$

116

 

The following table provides a reconciliation of Full Year 2023 guidance to the last guidance provided in May:

 

 

 

(Unaudited)

 

 

 

Full Year 2023

 

(in millions)

 

Midpoint of Guidance in May

 

 

Increase/
(Decrease)

 

 

Currency Fluctuations from Prior Guidance

 

 

Midpoint of Guidance in August

 

Software Product Revenue

 

$

556.0

 

 

$

 

 

$

(3.0

)

 

$

553.0

 

Total Revenue

 

$

619.0

 

 

$

 

 

$

(3.0

)

 

$

616.0

 

Adjusted EBITDA

 

$

125.0

 

 

$

 

 

$

(1.0

)

 

$

124.0

 

Conference Call Information

 

What: Altair’s Second Quarter 2023 Financial Results Conference Call
When: Thursday, August 3, 2023

Time: 5 p.m. ET
Webcast:
http://investor.altair.com (live & replay)

***

 

Non-GAAP Financial Measures

 

This press release contains the following non-GAAP financial measures: Non-GAAP Net Income, Non-GAAP Net Income Per Share, Billings, Adjusted EBITDA, Free Cash Flow, Non-GAAP Gross Profit and Non-GAAP Operating Expense.

Altair believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations. The Company’s management uses these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis, for purposes of determining executive and senior management incentive compensation and for budgeting and planning purposes. The Company also believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other software companies, many of which present similar non-GAAP financial measures to investors.

Non-GAAP net income excludes stock-based compensation, amortization of intangible assets related to acquisitions, restructuring charges, asset impairment charges, non-cash interest expense, other special items as identified by management and described elsewhere in this press release, and the impact of non-GAAP tax rate to income tax expense, which approximates our tax rate excluding discrete items and other specific events that can fluctuate from period to period.

 


 

Non-GAAP diluted common shares includes the diluted weighted average shares outstanding per GAAP regardless of whether the Company is in a loss position.

Billings consists of total revenue plus the change in deferred revenue, excluding deferred revenue from acquisitions.

Adjusted EBITDA represents net income adjusted for income tax expense, interest expense, interest income and other, depreciation and amortization, stock-based compensation expense, restructuring charges, asset impairment charges and other special items as identified by management and described elsewhere in this press release.

Free cash flow consists of cash flow from operations less capital expenditures.

Non-GAAP gross profit represents gross profit adjusted for stock-based compensation expense, restructuring expense and other special items as identified by management and described elsewhere in this press release.

Non-GAAP operating expense represents operating expense excluding stock-based compensation expense, amortization, restructuring charges, asset impairment charges and other special items as identified by management and described elsewhere in this press release.

 

Company management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Altair urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company’s business.

 

Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this release.

 

About Altair

Altair is a global leader in computational science and artificial intelligence (AI) that provides software and cloud solutions in simulation, high-performance computing (HPC), data analytics and AI. Altair enables organizations across all industries to compete more effectively and drive smarter decisions in an increasingly connected world – all while creating a greener, more sustainable future. To learn more, please visit www.altair.com.

 

Cautionary Language Concerning Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, our guidance for the third quarter and full year 2023, our statements regarding our expectations for 2023, and our reconciliations of projected non-GAAP financial measures. These forward-looking statements are made as of the date of this release and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Altair’s control. Altair’s actual results could differ materially from those stated or implied in our forward-looking statements due to a number of factors, including but not limited to, the risks detailed in Altair’s quarterly and annual reports filed with the Securities and Exchange Commission as well as other documents that may be filed by the Company from time to time with the Securities and Exchange Commission. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent Altair’s views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its views to change. Altair undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing Altair’s views as of any date subsequent to the date of this press release.

 

 


 

Media Relations

Altair

Dave Simon

248-614-2400 ext. 332

dls@altair.com

 

Investor Relations

The Blueshirt Group

Monica Gould

212-871-3927

ir@altair.com

 

 

 


 

ALTAIR ENGINERING INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 

 

 

 

June 30, 2023

 

 

December 31, 2022

 

(In thousands)

 

(Unaudited)

 

 

 

 

ASSETS

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

Cash and cash equivalents

 

$

418,338

 

 

$

316,146

 

Accounts receivable, net

 

 

124,260

 

 

 

170,279

 

Income tax receivable

 

 

14,505

 

 

 

11,259

 

Prepaid expenses and other current assets

 

 

29,678

 

 

 

29,142

 

Total current assets

 

 

586,781

 

 

 

526,826

 

Property and equipment, net

 

 

39,107

 

 

 

37,517

 

Operating lease right of use assets

 

 

30,284

 

 

 

33,601

 

Goodwill

 

 

453,093

 

 

 

449,048

 

Other intangible assets, net

 

 

94,642

 

 

 

107,609

 

Deferred tax assets

 

 

8,183

 

 

 

9,727

 

Other long-term assets

 

 

43,717

 

 

 

40,410

 

TOTAL ASSETS

 

$

1,255,807

 

 

$

1,204,738

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

CURRENT LIABILITIES:

 

 

 

 

 

 

Accounts payable

 

$

4,682

 

 

$

10,434

 

Accrued compensation and benefits

 

 

35,951

 

 

 

42,456

 

Current portion of operating lease liabilities

 

 

9,557

 

 

 

10,396

 

Other accrued expenses and current liabilities

 

 

66,044

 

 

 

56,371

 

Deferred revenue

 

 

121,853

 

 

 

113,081

 

Current portion of convertible senior notes, net

 

 

81,161

 

 

 

 

Total current liabilities

 

 

319,248

 

 

 

232,738

 

Convertible senior notes, net

 

 

225,320

 

 

 

305,604

 

Operating lease liabilities, net of current portion

 

 

21,337

 

 

 

24,065

 

Deferred revenue, non-current

 

 

26,694

 

 

 

31,379

 

Other long-term liabilities

 

 

42,993

 

 

 

41,216

 

TOTAL LIABILITIES

 

 

635,592

 

 

 

635,002

 

Commitments and contingencies

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY:

 

 

 

 

 

 

Preferred stock ($0.0001 par value), authorized 45,000 shares, none issued and outstanding

 

 

 

 

 

 

Common stock ($0.0001 par value)

 

 

 

 

 

 

Class A common stock, authorized 513,797 shares, issued and outstanding 53,951
   and 52,277 shares as of June 30, 2023, and December 31, 2022, respectively

 

 

5

 

 

 

5

 

Class B common stock, authorized 41,203 shares, issued and outstanding 27,175
   and 27,745 shares as of June 30, 2023, and December 31, 2022

 

 

3

 

 

 

3

 

Additional paid-in capital

 

 

790,184

 

 

 

721,307

 

Accumulated deficit

 

 

(145,816

)

 

 

(121,577

)

Accumulated other comprehensive loss

 

 

(24,161

)

 

 

(30,002

)

TOTAL STOCKHOLDERS’ EQUITY

 

 

620,215

 

 

 

569,736

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

1,255,807

 

 

$

1,204,738

 

 

 

 


 

ALTAIR ENGINEERING INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

Three Months Ended
 June 30,

 

 

Six Months Ended
June 30,

 

(in thousands, except per share data)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

License

 

$

87,738

 

 

$

82,688

 

 

$

200,147

 

 

$

188,857

 

Maintenance and other services

 

 

37,583

 

 

 

34,205

 

 

 

74,817

 

 

 

68,933

 

Total software

 

 

125,321

 

 

 

116,893

 

 

 

274,964

 

 

 

257,790

 

Software related services

 

 

6,664

 

 

 

7,376

 

 

 

13,764

 

 

 

16,437

 

Total software and related services

 

 

131,985

 

 

 

124,269

 

 

 

288,728

 

 

 

274,227

 

Client engineering services

 

 

8,034

 

 

 

7,047

 

 

 

15,810

 

 

 

15,059

 

Other

 

 

1,142

 

 

 

1,340

 

 

 

2,657

 

 

 

3,151

 

Total revenue

 

 

141,161

 

 

 

132,656

 

 

 

307,195

 

 

 

292,437

 

Cost of revenue

 

 

 

 

 

 

 

 

 

 

 

 

License

 

 

3,981

 

 

 

4,120

 

 

 

8,805

 

 

 

8,807

 

Maintenance and other services

 

 

13,639

 

 

 

12,884

 

 

 

28,065

 

 

 

25,603

 

Total software *

 

 

17,620

 

 

 

17,004

 

 

 

36,870

 

 

 

34,410

 

Software related services

 

 

5,308

 

 

 

5,464

 

 

 

10,924

 

 

 

11,499

 

Total software and related services

 

 

22,928

 

 

 

22,468

 

 

 

47,794

 

 

 

45,909

 

Client engineering services

 

 

6,767

 

 

 

5,914

 

 

 

13,391

 

 

 

12,555

 

Other

 

 

1,102

 

 

 

1,141

 

 

 

2,347

 

 

 

2,662

 

Total cost of revenue

 

 

30,797

 

 

 

29,523

 

 

 

63,532

 

 

 

61,126

 

Gross profit

 

 

110,364

 

 

 

103,133

 

 

 

243,663

 

 

 

231,311

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development *

 

 

55,277

 

 

 

50,437

 

 

 

108,528

 

 

 

97,516

 

Sales and marketing *

 

 

44,982

 

 

 

41,153

 

 

 

88,474

 

 

 

78,993

 

General and administrative *

 

 

18,622

 

 

 

18,370

 

 

 

36,573

 

 

 

35,796

 

Amortization of intangible assets

 

 

7,625

 

 

 

6,208

 

 

 

15,439

 

 

 

12,111

 

Other operating expense (income), net

 

 

127

 

 

 

(5,767

)

 

 

5,732

 

 

 

(6,548

)

Total operating expenses

 

 

126,633

 

 

 

110,401

 

 

 

254,746

 

 

 

217,868

 

Operating (loss) income

 

 

(16,269

)

 

 

(7,268

)

 

 

(11,083

)

 

 

13,443

 

Interest expense

 

 

1,528

 

 

 

700

 

 

 

3,054

 

 

 

1,285

 

Other (income) expense, net

 

 

(4,195

)

 

 

21,907

 

 

 

(7,808

)

 

 

23,975

 

Loss before income taxes

 

 

(13,602

)

 

 

(29,875

)

 

 

(6,329

)

 

 

(11,817

)

Income tax expense

 

 

8,678

 

 

 

3,899

 

 

 

17,910

 

 

 

10,429

 

Net loss

 

$

(22,280

)

 

$

(33,774

)

 

$

(24,239

)

 

$

(22,246

)

Loss per share:

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share attributable to common
  stockholders, basic and diluted

 

$

(0.28

)

 

$

(0.43

)

 

$

(0.30

)

 

$

(0.28

)

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares used in computing
  net loss per share, basic and diluted

 

 

79,986

 

 

 

78,948

 

 

 

80,088

 

 

 

79,204

 

 

 

 

 

 

 

 

 

 

* Amounts include stock-based compensation expense as follows (in thousands):

 

 


 

 

 

(Unaudited)

 

 

 

Three Months Ended
 June 30,

 

 

Six Months Ended
June 30,

 

(in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Cost of revenue – software

 

$

2,572

 

 

$

2,030

 

 

$

5,324

 

 

$

3,933

 

Research and development

 

 

9,943

 

 

 

8,979

 

 

 

18,686

 

 

 

16,337

 

Sales and marketing

 

 

7,581

 

 

 

7,664

 

 

 

15,172

 

 

 

14,699

 

General and administrative

 

 

3,640

 

 

 

2,527

 

 

 

6,715

 

 

 

4,845

 

Total stock-based compensation expense

 

$

23,736

 

 

$

21,200

 

 

$

45,897

 

 

$

39,814

 

 

 

 

 

(Unaudited)

 

 

 

Three Months Ended
 June 30,

 

 

Six Months Ended
June 30,

 

(in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Employee stock-based compensation plans

 

$

19,189

 

 

$

14,873

 

 

$

37,673

 

 

$

28,132

 

Post combination expense in connection with acquisitions

 

 

4,547

 

 

 

6,327

 

 

 

8,224

 

 

 

11,682

 

Total stock-based compensation expense

 

$

23,736

 

 

$

21,200

 

 

$

45,897

 

 

$

39,814

 

 

 

 


 

ALTAIR ENGINEERING INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOW

(Unaudited)

 

 

 

Six Months Ended June 30,

 

(In thousands)

 

2023

 

 

2022

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

Net loss

 

$

(24,239

)

 

$

(22,246

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

19,488

 

 

 

15,819

 

Stock-based compensation expense

 

 

45,897

 

 

 

39,814

 

Amortization of debt issuance costs

 

 

930

 

 

 

829

 

Deferred income taxes

 

 

2,015

 

 

 

(64

)

Loss (gain) on mark-to-market adjustment of contingent consideration

 

 

7,987

 

 

 

(5,304

)

Expense on repurchase of convertible senior notes

 

 

 

 

 

16,621

 

Other, net

 

 

405

 

 

 

229

 

Changes in assets and liabilities:

 

 

 

 

 

 

Accounts receivable, net

 

 

45,077

 

 

 

29,270

 

Prepaid expenses and other current assets

 

 

(3,166

)

 

 

2,056

 

Other long-term assets

 

 

(2,516

)

 

 

4,397

 

Accounts payable

 

 

(5,529

)

 

 

(2,070

)

Accrued compensation and benefits

 

 

(6,591

)

 

 

(9,742

)

Other accrued expenses and current liabilities

 

 

4,857

 

 

 

(61,648

)

Deferred revenue

 

 

4,614

 

 

 

10,080

 

Net cash provided by operating activities

 

 

89,229

 

 

 

18,041

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

Capital expenditures

 

 

(6,184

)

 

 

(3,457

)

Payments for acquisition of businesses, net of cash acquired

 

 

(721

)

 

 

(37,660

)

Other investing activities, net

 

 

(1,452

)

 

 

(322

)

Net cash used in investing activities

 

 

(8,357

)

 

 

(41,439

)

FINANCING ACTIVITIES:

 

 

 

 

 

 

Proceeds from the exercise of common stock options

 

 

23,507

 

 

 

1,689

 

Payments for repurchase and retirement of common stock

 

 

(6,255

)

 

 

(4,387

)

Proceeds from employee stock purchase plan contributions

 

 

3,797

 

 

 

4,431

 

Proceeds from issuance of convertible senior notes,
   net of discounts and commissions

 

 

 

 

 

224,265

 

Repurchase of convertible senior notes

 

 

 

 

 

(192,792

)

Payments of debt issuance costs

 

 

 

 

 

(1,157

)

Other financing activities

 

 

(48

)

 

 

(131

)

Net cash provided by financing activities

 

 

21,001

 

 

 

31,918

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

 

(44

)

 

 

(6,226

)

Net increase in cash, cash equivalents and restricted cash

 

 

101,829

 

 

 

2,294

 

Cash, cash equivalents and restricted cash at beginning of year

 

 

316,958

 

 

 

414,012

 

Cash, cash equivalents and restricted cash at end of period

 

$

418,787

 

 

$

416,306

 

 

 

 


 

Financial Results

 

The following table provides a reconciliation of Non-GAAP net income and Non-GAAP net income per share – diluted, to net loss and net loss per share – diluted, the most comparable GAAP financial measures:

 

 

 

(Unaudited)

 

 

 

Three Months Ended
 June 30,

 

 

Six Months Ended
June 30,

 

(in thousands, except per share amounts)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net loss

 

$

(22,280

)

 

$

(33,774

)

 

$

(24,239

)

 

$

(22,246

)

Stock-based compensation expense

 

 

23,736

 

 

 

21,200

 

 

 

45,897

 

 

 

39,814

 

Amortization of intangible assets

 

 

7,625

 

 

 

6,208

 

 

 

15,439

 

 

 

12,111

 

Non-cash interest expense

 

 

465

 

 

 

422

 

 

 

930

 

 

 

839

 

Impact of non-GAAP tax rate (1)

 

 

4,033

 

 

 

79

 

 

 

2,100

 

 

 

(4,957

)

Special adjustments and other (2)

 

 

(361

)

 

 

16,737

 

 

 

4,870

 

 

 

18,229

 

Non-GAAP net income

 

$

13,218

 

 

$

10,872

 

 

$

44,997

 

 

$

43,790

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share, diluted

 

$

(0.28

)

 

$

(0.43

)

 

$

(0.30

)

 

$

(0.28

)

Non-GAAP net income per share, diluted

 

$

0.15

 

 

$

0.13

 

 

$

0.51

 

 

$

0.51

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP diluted shares outstanding

 

 

79,986

 

 

 

78,948

 

 

 

80,088

 

 

 

79,204

 

Non-GAAP diluted shares outstanding

 

 

88,383

 

 

 

86,281

 

 

 

88,735

 

 

 

86,516

 

(1)
The Company uses a non-GAAP effective tax rate of 26%.
(2)
The three months ended June 30, 2023, includes $1.0 million loss from a mark-to-market adjustment of contingent consideration associated with the World Programming acquisition and $1.3 million currency gains on acquisition-related intercompany loans. The three months ended June 30, 2022, includes $16.6 million expense on repurchase of convertible senior notes, $5.4 million currency losses on acquisition-related intercompany loans, and a $5.3 million gain from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition. The six months ended June 30, 2023, includes $8.0 million loss from a mark-to-market adjustment of contingent consideration associated with the World Programming acquisition and $3.1 million currency gains on acquisition-related intercompany loans. The six months ended June 30, 2022, includes $16.6 million expense on repurchase of convertible senior notes, $6.9 million currency losses on acquisition-related intercompany loans and a $5.3 million gain from the mark-to-market adjustment of contingent consideration associated with the World Programming acquisition.

The following table provides a reconciliation of Adjusted EBITDA to net loss, the most comparable GAAP financial measure:

 

 

 

(Unaudited)

 

 

 

Three Months Ended
 June 30,

 

 

Six Months Ended
June 30,

 

(in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net loss

 

$

(22,280

)

 

$

(33,774

)

 

$

(24,239

)

 

$

(22,246

)

Income tax expense

 

 

8,678

 

 

 

3,899

 

 

 

17,910

 

 

 

10,429

 

Stock-based compensation expense

 

 

23,736

 

 

 

21,200

 

 

 

45,897

 

 

 

39,814

 

Interest expense

 

 

1,528