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“So far in 2020 we’ve seen several years of advertising disruption and innovation compressed into a few months. As a result, advertisers have become more deliberate and data-driven with every advertising dollar. That helped us deliver record quarterly revenue of
Third Quarter 2020 Financial Highlights:
The following table summarizes our consolidated financial results for the quarters ended
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Three Months Ended |
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Nine Months Ended |
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2020 |
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2019 |
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2020 |
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2019 |
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GAAP Results |
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Revenue |
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$ |
216.1 |
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$ |
164.2 |
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$ |
516.1 |
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$ |
445.1 |
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Increase (decrease) in revenue year over year |
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32 |
% |
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38 |
% |
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16 |
% |
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40 |
% |
Net Income |
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$ |
41.2 |
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$ |
19.4 |
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$ |
90.4 |
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$ |
57.4 |
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Diluted EPS |
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$ |
0.84 |
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$ |
0.40 |
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$ |
1.86 |
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$ |
1.20 |
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Non-GAAP Results |
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Adjusted EBITDA |
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$ |
77.2 |
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$ |
47.8 |
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$ |
130.7 |
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$ |
130.4 |
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Adjusted EBITDA Margin |
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36 |
% |
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29 |
% |
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25 |
% |
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29 |
% |
Non-GAAP Net Income |
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$ |
62.7 |
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$ |
36.1 |
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$ |
150.8 |
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$ |
104.8 |
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Non-GAAP Diluted EPS |
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$ |
1.27 |
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$ |
0.75 |
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$ |
3.10 |
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$ |
2.19 |
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Third Quarter and Recent Business Highlights Include:
Industry Awards:
Impact of COVID-19 on our Outlook:
Our business has been impacted by the COVID-19 pandemic that has significantly impacted advertiser demand. Like many companies that are ad-funded, we are facing a period of higher uncertainty in our business outlook. We expect our business performance could be impacted by issues beyond our control, such as changing economic conditions or shelter-in-place orders that may or may not occur. Assuming that the economy continues to recover and we do not have any major COVID-19 related setbacks that may cause economic conditions to deteriorate, we estimate Q4 revenue to range between
Fourth Quarter 2020 outlook summary:
Use of Non-GAAP Financial Information
Included within this press release are the non-GAAP financial measures of Adjusted EBITDA, Non-GAAP net income and Non-GAAP diluted EPS that supplement the Consolidated Statements of Income of
Third Quarter Financial Results Webcast and Conference Call Details
About
Forward-Looking Statements
This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to expectations concerning matters that (a) are not historical facts, (b) predict or forecast future events or results, or (c) embody assumptions that may prove to have been inaccurate, including statements relating to the industry and market trends, and the Company’s financial targets, such as revenue and Adjusted EBITDA. When words such as “believe,” “expect,” “anticipate,” “will”, “outlook” or similar expressions are used, the Company is making forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give readers any assurance that such expectations will prove correct. These forward-looking statements involve risks, uncertainties and assumptions, including those related to the Company’s relatively limited operating history and the impact of COVID-19 on the Company and its customers and partners, which makes it difficult to evaluate the Company’s business and prospects, the market for programmatic advertising developing slower or differently than the Company’s expectations, the demands and expectations of clients and the ability to attract and retain clients. The actual results may differ materially from those anticipated in the forward-looking statements as a result of numerous factors, many of which are beyond the control of the Company. These are disclosed in the Company’s reports filed from time to time with the
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CONSOLIDATED STATEMENTS OF INCOME |
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(Amounts in thousands, except per share amounts) |
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(Unaudited) |
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Three Months Ended |
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Nine Months Ended |
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2020 |
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2019 |
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2020 |
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2019 |
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Revenue |
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$ |
216,113 |
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$ |
164,203 |
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$ |
516,128 |
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$ |
445,114 |
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Operating expenses (1): |
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Platform operations |
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44,826 |
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39,932 |
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127,167 |
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108,913 |
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Sales and marketing |
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44,637 |
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36,142 |
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116,002 |
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89,951 |
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Technology and development |
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41,079 |
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29,185 |
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117,931 |
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83,949 |
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General and administrative |
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42,789 |
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37,017 |
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117,252 |
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102,755 |
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Total operating expenses |
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173,331 |
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142,276 |
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478,352 |
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385,568 |
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Income from operations |
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42,782 |
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21,927 |
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37,776 |
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59,546 |
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Total other expense (income), net |
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223 |
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(1,892 |
) |
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834 |
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(2,979 |
) |
Income before income taxes |
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42,559 |
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23,819 |
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36,942 |
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62,525 |
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Provision for (benefit from) income taxes |
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1,312 |
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4,397 |
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(53,473 |
) |
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5,152 |
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Net income |
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$ |
41,247 |
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$ |
19,422 |
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$ |
90,415 |
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$ |
57,373 |
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Earnings per share: |
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Basic |
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$ |
0.89 |
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$ |
0.43 |
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$ |
1.96 |
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$ |
1.29 |
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Diluted |
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$ |
0.84 |
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$ |
0.40 |
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$ |
1.86 |
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$ |
1.20 |
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Weighted average shares outstanding: |
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Basic |
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46,582 |
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44,771 |
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46,075 |
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44,363 |
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Diluted |
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49,220 |
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48,037 |
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48,731 |
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47,728 |
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_______________________ |
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(1) Includes stock-based compensation expense as follows: |
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STOCK-BASED COMPENSATION EXPENSE |
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(Amounts in thousands) |
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(Unaudited) |
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Three Months Ended |
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Nine Months Ended |
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2020 |
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2019 |
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2020 |
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2019 |
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Platform operations |
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$ |
1,639 |
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$ |
1,507 |
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$ |
5,459 |
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$ |
3,894 |
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Sales and marketing |
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6,916 |
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5,036 |
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18,549 |
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13,094 |
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Technology and development |
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7,911 |
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7,146 |
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24,345 |
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18,579 |
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General and administrative |
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10,386 |
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5,753 |
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25,398 |
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|
20,801 |
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Total |
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$ |
26,852 |
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$ |
19,442 |
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$ |
73,751 |
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$ |
56,368 |
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CONSOLIDATED BALANCE SHEETS |
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(Amounts in thousands) |
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(Unaudited) |
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As of |
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As of |
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2020 |
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2019 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
434,371 |
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$ |
130,876 |
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Short-term investments, net |
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122,909 |
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|
124,112 |
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Accounts receivable, net |
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1,139,860 |
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1,166,376 |
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Prepaid expenses and other current assets |
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58,847 |
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|
27,857 |
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Total current assets |
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1,755,987 |
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1,449,221 |
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Property and equipment, net |
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111,862 |
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|
64,012 |
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Operating lease assets |
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202,172 |
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|
173,449 |
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Deferred income taxes |
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39,928 |
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|
18,950 |
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Other assets, non-current |
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28,479 |
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|
23,129 |
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Total assets |
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$ |
2,138,428 |
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$ |
1,728,761 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
919,694 |
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$ |
868,618 |
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Accrued expenses and other current liabilities |
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57,724 |
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47,178 |
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Operating lease liabilities |
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34,735 |
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|
14,577 |
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Total current liabilities |
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1,012,153 |
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930,373 |
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Operating lease liabilities, non-current |
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205,408 |
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|
174,873 |
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Debt, net |
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72,000 |
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— |
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Other liabilities, non-current |
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16,240 |
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|
10,998 |
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Total liabilities |
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1,305,801 |
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1,116,244 |
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Stockholders' equity: |
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Preferred stock |
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— |
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— |
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Common stock |
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— |
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— |
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Additional paid-in capital |
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510,017 |
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|
380,079 |
|
Accumulated other comprehensive income |
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|
145 |
|
|
|
— |
|
Retained earnings |
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|
322,465 |
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|
232,438 |
|
Total stockholders' equity |
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|
832,627 |
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|
612,517 |
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Total liabilities and stockholders' equity |
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$ |
2,138,428 |
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$ |
1,728,761 |
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CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(Amounts in thousands) |
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(Unaudited) |
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Nine Months Ended |
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2020 |
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2019 |
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OPERATING ACTIVITIES: |
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Net income |
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$ |
90,415 |
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$ |
57,373 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation and amortization |
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|
20,777 |
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|
15,246 |
|
Stock-based compensation |
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|
73,751 |
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|
56,368 |
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Allowance for credit losses on accounts receivable |
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|
2,722 |
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|
1,647 |
|
Noncash lease expense |
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|
24,052 |
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|
15,394 |
|
Deferred income taxes |
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(20,978 |
) |
|
|
— |
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Other |
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|
1,242 |
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(2,945 |
) |
Changes in operating assets and liabilities: |
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Accounts receivable |
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21,063 |
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(2,739 |
) |
Prepaid expenses and other assets |
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(23,919 |
) |
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|
(19,024 |
) |
Accounts payable |
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|
47,728 |
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(21,401 |
) |
Accrued expenses and other liabilities |
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|
11,006 |
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(3,178 |
) |
Operating lease liabilities |
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(10,388 |
) |
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(8,468 |
) |
Net cash provided by operating activities |
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|
237,471 |
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|
88,273 |
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INVESTING ACTIVITIES: |
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Purchases of investments |
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(127,117 |
) |
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(178,179 |
) |
Maturities of investments |
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128,315 |
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|
55,819 |
|
Purchases of property and equipment |
|
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(57,721 |
) |
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(21,659 |
) |
Capitalized software development costs |
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(4,246 |
) |
|
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(3,849 |
) |
Net cash used in investing activities |
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(60,769 |
) |
|
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(147,868 |
) |
FINANCING ACTIVITIES: |
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|
|
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Proceeds from line of credit |
|
|
143,000 |
|
|
|
— |
|
Repayment on line of credit |
|
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(71,000 |
) |
|
|
— |
|
Payment of debt financing costs |
|
|
— |
|
|
|
(6 |
) |
Proceeds from exercise of stock options |
|
|
53,942 |
|
|
|
21,911 |
|
Proceeds from employee stock purchase plan |
|
|
15,035 |
|
|
|
8,648 |
|
Taxes paid related to net settlement of restricted stock awards |
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(14,184 |
) |
|
|
(4,744 |
) |
Net cash provided by financing activities |
|
|
126,793 |
|
|
|
25,809 |
|
Increase (decrease) in cash and cash equivalents |
|
|
303,495 |
|
|
|
(33,786 |
) |
Cash and cash equivalents—Beginning of period |
|
|
130,876 |
|
|
|
207,232 |
|
Cash and cash equivalents—End of period |
|
$ |
434,371 |
|
|
$ |
173,446 |
|
|
|
|
|
|
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Non-GAAP Financial Metrics
(Amounts in thousands, except per share amounts)
The following tables show the Company’s non-GAAP financial metrics reconciled to the comparable GAAP financial metrics included in this release.
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Three Months Ended |
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Nine Months Ended |
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2020 |
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2019 |
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2020 |
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2019 |
|
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|
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Net income |
|
$ |
41,247 |
|
|
$ |
19,422 |
|
|
$ |
90,415 |
|
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$ |
57,373 |
|
Add back: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
7,517 |
|
|
|
5,969 |
|
|
|
20,777 |
|
|
|
15,246 |
|
Stock-based compensation |
|
|
26,852 |
|
|
|
19,442 |
|
|
|
73,751 |
|
|
|
56,368 |
|
Interest expense (income), net |
|
|
235 |
|
|
|
(1,480 |
) |
|
|
(740 |
) |
|
|
(3,763 |
) |
Provision for (benefit from) income taxes |
|
|
1,312 |
|
|
|
4,397 |
|
|
|
(53,473 |
) |
|
|
5,152 |
|
Adjusted EBITDA |
|
$ |
77,163 |
|
|
$ |
47,750 |
|
|
$ |
130,730 |
|
|
$ |
130,376 |
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Three Months Ended |
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Nine Months Ended |
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2020 |
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2019 |
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|
2020 |
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|
2019 |
|
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GAAP net income |
|
$ |
41,247 |
|
|
$ |
19,422 |
|
|
$ |
90,415 |
|
|
$ |
57,373 |
|
Add back (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
26,852 |
|
|
|
19,442 |
|
|
|
73,751 |
|
|
|
56,368 |
|
Adjustment for income taxes |
|
|
(5,440 |
) |
|
|
(2,777 |
) |
|
|
(13,341 |
) |
|
|
(8,985 |
) |
Non-GAAP net income |
|
$ |
62,659 |
|
|
$ |
36,087 |
|
|
$ |
150,825 |
|
|
$ |
104,756 |
|
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|
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|
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|
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|
GAAP diluted EPS |
|
$ |
0.84 |
|
|
$ |
0.40 |
|
|
$ |
1.86 |
|
|
$ |
1.20 |
|
Non-GAAP diluted EPS |
|
$ |
1.27 |
|
|
$ |
0.75 |
|
|
$ |
3.10 |
|
|
$ |
2.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding—diluted |
|
|
49,220 |
|
|
|
48,037 |
|
|
|
48,731 |
|
|
|
47,728 |
|
|
|
|
|
|
|
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View source version on businesswire.com: https://www.businesswire.com/news/home/20201105006090/en/
Investors
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