EX-99.1 2 exhibit991q42020pressrelea.htm EX-99.1

EXHIBIT 99.1

Datto Announces Fourth Quarter and Full Year 2020 Financial Results

Fourth quarter subscription revenue grew 16 percent year-over-year to $129.0 million

ARR grew 14 percent year-over-year to $542.8 million

Norwalk, CT – March 11, 2021—Datto Holding Corp. (“Datto”) (NYSE: MSP), the leading global provider of cloud-based software and technology solutions purpose-built for delivery by managed service providers (MSPs), today announced its financial results for the fourth-quarter and full year ended December 31, 2020.

“2020 was a milestone year for Datto. We completed our first year as a public company, delivering full year subscription revenue growth of 18%, expanding cash flow margins and deepening our strong, global MSP partner relationships,” said Tim Weller, Datto’s Chief Executive Officer. “Our strong fourth quarter and full year performance is a testament to the power of Datto’s MSP-centric platform and the durability of our recurring revenue subscription model, even during these challenging times. Our sequential quarterly ARR growth of $20 million is continued evidence of the reacceleration of our business and the tailwinds from the digital transformation of small and medium businesses. Looking ahead to 2021 in this increasingly hybrid cloud environment, we remain focused on providing MSPs and their SMB clients with best-in-class security, continuity, and remote monitoring and management solutions for complete cyber resilience. Cloud and security have been at the core of Datto’s mission to protect digital assets since inception. Our recent acquisition of BitDam further advances the value we provide to our network of more than 17,000 MSP partners and we are well positioned take advantage of the large opportunities in front of us.”

Fourth Quarter and Full Year 2020 Financial Results

(In Millions)						Q4 2020						Q4 2019						Y/Y Change						FY 2020						FY 2019						Y/Y Change
Subscription Revenue						$129.0						$111.1						16%						$485.3						$412.2						18%
Total Revenue						$139.0						$126.1						10%						$518.8						$458.8						13%
ARR(1)						$542.8						$474.8						14%						$542.8						$474.8						14%
Gross Margin						69%						64%						+498bps						71%						66%						+534bps
Net Income (Loss)						$(7.2)						$(8.2)						13%						$22.5						$(31.2)						NM
Adjusted EBITDA(2)						$40.8						$17.1						139%						$150.5						$84.6						78%
Net cash provided by operating activities						$34.6						$4.6						NM						$108.7						$11.2						NM
Free Cash Flow(2)						$22.7						$(5.8)						NM						$68.2						$(27.0)						NM

1			Annual run-rate revenue (ARR) is the annualized value of all subscription agreements as of the end of a period. We calculate ARR by multiplying the monthly run-rate revenue for the last month of a period by 12.
2			A reconciliation of GAAP to non-GAAP financial measures is provided in the financial statement tables included in this press release. An explanation of these measures is also included under the heading “Non-GAAP Financial Measures.”

Recent Highlights

•Acquired BitDam, an Israel-based cyber security company that protects small and medium businesses (SMBs) against ransomware, malware, and phishing threats. BitDam’s best-in-class technology and team significantly enhance Datto’s cyber resilience solutions for SMBs.

•Released RMM Ransomware Detection to monitor, prevent and remediate ransomware attacks, giving MSPs an extra layer of security.

•Joined the Institute for Security and Technology’s Multi-Sector Ransomware Task Force in the fight against cyber crime.

•Hosted Datto’s third virtual MSP Technology Day dedicated to highlighting operational efficiency and cyber security themes for MSPs.

•Published the 5th annual State of the Channel Ransomware Report surveying more than 1,000 MSPs, which found that cyber security is MSPs’ number one concern and phishing is the leading attack vector.

•Ended the quarter with more than 17,000 MSP partners, an increase of 400 year-over-year.

 

First Quarter and Full Year 2021 Financial Outlook

Datto is providing the following guidance for the first quarter and full-year 2021:

 

Q1 2021 Outlook

FY 2021 Outlook

Revenue

$142 - $144 million

$582 - $590 million

Adjusted EBITDA

$45 - $46 million

$130 - $135 million

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Datto Fourth Quarter and Full Year 2020 Financial Results Conference Call

When: Thursday, March 11, 2020

Time: 5:00 pm ET

Conference ID: 6343809

Live Call: 1-833-312-1358 (US/Canada Toll-Free) or 1-236-712-2458 (International)

Replay: 1-800-585-8367 (US/Canada Toll-Free) or 1- 416-621-4642 (International)

(The replay will be available approximately two hours after the completion of the live call until 11:59 pm ET on March 18, 2021)

Webcast: https://investors.datto.com

About Datto

As the world’s leading provider of cloud-based software and technology solutions purpose-built for delivery by managed service providers (MSPs), Datto believes there is no limit to what small and medium businesses can achieve with the right technology. Datto offers Unified Continuity, Networking, and Business Management solutions and has created a unique ecosystem of MSP partners. These partners provide Datto solutions to over one million businesses across the globe. Since its founding in 2007, Datto has won awards for its rapid growth, product excellence, superior technical support, and for fostering an outstanding workplace. With headquarters in Norwalk, Connecticut, Datto has global offices in the United Kingdom, the Netherlands, Denmark, Germany, Canada, Australia, China, and Singapore. Learn more at datto.com.

Forward Looking Statements

This press release contains forward-looking statements that reflect Datto’s current expectations and projections with respect to, among other things, its financial condition, results of operations, plans, objectives, future performance, and business. These statements may be preceded by, followed by or include the words ‘‘anticipate,’’ ‘‘estimate,’’ ‘‘expect,’’ ‘‘project,’’ ‘‘plan,’’ ‘‘intend,’’ ‘‘believe,’’ ‘‘may,’’ ‘‘will,’’ ‘‘should,’’ ‘‘can have,’’ ‘‘likely’’ and the negatives thereof and other words and terms of similar meaning. Further information on potential factors that could affect our results is included in our Annual Report on Form 10-K.

Forward-looking statements include all statements that are not historical facts. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements.

 

There is no assurance that any forward-looking statements will materialize. You are cautioned not to place undue reliance on forward-looking statements, which reflect expectations only as of this date. Datto undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

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Non-GAAP Financial Measures

In addition to our results determined in accordance with generally accepted accounting principles in the United States (“GAAP”), we believe that the non-GAAP financial measures of Non-GAAP Subscription Cost of Revenue, Non-GAAP Device Cost of Revenue, Non-GAAP Professional Services and Other Cost of Revenue, Non-GAAP Depreciation and Amortization in Cost of Revenue, Non-GAAP Cost of Revenue, Non-GAAP Gross Profit, Non-GAAP Sales and Marketing expense, Non-GAAP Research and Development expense, Non-GAAP General and Administrative expense, Non-GAAP Depreciation and Amortization in Operating Expenses, Non-GAAP Operating Expenses, Non-GAAP Income from Operations, Non-GAAP Net Income and Non-GAAP Net Income Per Share, Adjusted EBITDA, and Free Cash Flow are useful in evaluating our operating performance. Certain of these measures exclude interest and other (income) expense, net, loss on extinguishment of debt, depreciation and amortization, stock-based compensation, restructuring expense and transaction-related and other expense. In addition, for Non-GAAP Net Income we utilize a non-GAAP tax rate of 25%, which we believe reflects our normalized effective tax rate. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance and assists in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results. The non-GAAP financial information is presented for supplemental informational purposes only, and should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly-titled non-GAAP measures used by other companies.

Reconciliation tables of the most directly 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 press release.

Datto is not providing a quantitative reconciliation of forward-looking guidance of Adjusted EBITDA to its most directly comparable GAAP measure because certain items are out of Datto’s control or cannot be reasonably predicted, as the items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. Accordingly, a reconciliation for forward-looking Adjusted EBITDA is not available without unreasonable effort.

For more information about Datto, including supplemental financial information, please visit the investor relations website at investors.datto.com.

 

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DATTO HOLDING CORP.

Consolidated Statements of Operations

(in thousands, except share and per share amounts)

(unaudited)

 

			Three Months Ended December 31,												Years Ended December 31,
			2020						2019						2020						2019
Revenue:
Subscription			$	128,978					$	111,060					$	485,326					$	412,167
Device			9,104						14,470						30,202						44,052
Professional services and other			910						596						3,257						2,533
Total revenue			138,992						126,126						518,785						458,752
Cost of revenue:
Subscription			23,677						21,594						84,463						82,066
Device			11,143						17,342						37,607						53,933
Professional services and other			1,845						1,689						6,244						5,563
Depreciation and amortization			6,144						4,489						21,890						15,745
Total cost of revenue			42,809						45,114						150,204						157,307
Gross profit			96,183						81,012						368,581						301,445
Operating expenses:
Sales and marketing			31,962						31,269						115,790						110,441
Research and development			30,932						16,535						78,932						60,459
General and administrative			26,279						23,348						85,668						73,903
Depreciation and amortization			6,623						6,911						27,223						27,417
Total operating expenses			95,796						78,063						307,613						272,220
Income from operations			387						2,949						60,968						29,225
Other expense:
Interest expense			1,758						9,306						25,348						43,437
Loss on extinguishment of debt			8,488						—						8,488						19,231
Other (income) expense, net			(2,026)						254						(3,428)						256
Total other expense			8,220						9,560						30,408						62,924
Income (loss) before income taxes			(7,833)						(6,611)						30,560						(33,699)
(Provision for) benefit from income taxes			665						(1,619)						(8,062)						2,511
Net income (loss)			$	(7,168)					$	(8,230)					$	22,498					$	(31,188)
Net income (loss) per share attributable to common stockholders:
Basic			$	(0.05)					$	(0.06)					$	0.16					$	(0.23)
Diluted			$	(0.05)					$	(0.06)					$	0.16					$	(0.23)
Weighted-average shares used in computing net income (loss) per share:
Basic			154,968,918						135,262,441						140,404,763						135,212,597
Diluted			154,968,918						135,262,441						142,514,848						135,212,597

 

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DATTO HOLDING CORP.

Consolidated Balance Sheets

(in thousands)

(unaudited) 

			December 31,
			2020						2019
ASSETS
Current assets
Cash			$	168,877					$	27,597
Restricted cash			1,536						1,469
Accounts receivable, net			13,946						20,841
Inventory			13,811						12,415
Prepaid expenses and other current assets			28,316						20,385
Total current assets			226,486						82,707
Property and equipment, net			91,876						80,746
Goodwill			1,120,954						1,118,856
Intangible assets, net			287,395						306,685
Other assets			66,560						53,298
Total assets			$	1,793,271					$	1,642,292
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable			$	7,574					$	16,049
Accrued expenses and other current liabilities			39,461						33,909
Long-term debt, current portion			—						5,500
Deferred revenue			23,763						24,254
Total current liabilities			70,798						79,712
Long-term debt			—						546,499
Deferred revenue, noncurrent			3,322						3,798
Deferred income taxes			18,947						10,120
Other long-term liabilities			11,736						9,860
Total liabilities			104,803						649,989
Commitments and contingencies
STOCKHOLDERS’ EQUITY
Common stock			136						136
Additional paid-in capital			1,755,412						1,083,082
Treasury stock			(3,621)						(3,621)
Accumulated deficit			(65,226)						(87,724)
Accumulated other comprehensive income			1,767						430
Total stockholders’ equity			1,688,468						992,303
Total liabilities and stockholders’ equity			$	1,793,271					$	1,642,292

 

 

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DATTO HOLDING CORP.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

			Years Ended December 31
			2020						2019
OPERATING ACTIVITIES
Net income (loss)			$	22,498					$	(31,188)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation			26,434						20,562
Amortization of acquired intangible assets			22,679						22,600
Loss on extinguishment of debt			8,488						19,231
Amortization of debt issuance costs			1,428						1,879
Reserve for inventory obsolescence			1,517						3,168
Stock-based compensation			33,460						12,215
Provision for bad debt			6,217						6,634
Deferred income taxes			7,770						(6,071)
Unrealized foreign exchange			(1,204)						(18)
Changes in operating assets and liabilities:
Accounts receivable			769						(10,837)
Inventory			(2,826)						(3,538)
Prepaid expenses and other current assets			(7,498)						(6,073)
Other assets			(12,952)						(24,172)
Accounts payable, accrued expenses and other			3,073						14,786
Deferred revenue			(1,155)						(7,943)
Net cash provided by operating activities			108,698						11,235
INVESTING ACTIVITIES
Purchase of property and equipment			(40,466)						(38,226)
Acquisition of business, net of cash acquired			(4,371)						—
Net cash used in investing activities			(44,837)						(38,226)
FINANCING ACTIVITIES
Proceeds from debt			32,100						562,250
Repayments of debt			(594,727)						(523,523)
Debt issuance costs			(1,178)						(8,775)
Prepayment penalty on debt			—						(10,400)
Proceeds from initial public offering, net of underwriting costs			641,643						—
Capitalized transaction costs			(5,256)						—
Proceeds from stock option exercises			3,150						291
Repurchase of common stock and settlement of stock-based payment awards			(53)						(1,338)
Net cash provided by financing activities			75,679						18,505
Effect of exchange rate changes on cash			1,807						294
Net increase (decrease) in cash			141,347						(8,192)
Cash and restricted cash, beginning of year			29,066						37,258
Cash and restricted cash, end of period			$	170,413					$	29,066
Reconciliation of cash and restricted cash:
Cash			$	168,877					$	27,597
Restricted cash			$	1,536					$	1,469
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for income taxes			$	890					$	2,333
Cash paid for interest			$	24,037					$	43,624
NON-CASH INVESTING AND FINANCING ACTIVITIES
Purchase of property and equipment included in accounts payable			$	17					$	3,051
Deferred initial public offering costs in accounts payable and accrued liabilities			$	684					$	1,885

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DATTO HOLDING CORP.

Non-GAAP Consolidated Statements of Operations

(in thousands, except share and per share amounts)

(unaudited)

 

			Three Months Ended December 31,												Years Ended December 31,
			2020						2019						2020						2019
Revenue:
Subscription			$	128,978					$	111,060					$	485,326					$	412,167
Device			9,104						14,470						30,202						44,052
Professional services and other			910						596						3,257						2,533
Total revenue			138,992						126,126						518,785						458,752
Cost of revenue:
Subscription			19,703						21,573						79,909						81,968
Device			10,940						17,342						37,404						53,933
Professional services and other			1,427						1,689						5,687						5,563
Depreciation and amortization			4,646						3,314						16,867						11,045
Total cost of revenue			36,716						43,918						139,867						152,509
Gross profit			102,276						82,208						378,918						306,243
Operating expenses:
Sales and marketing			27,151						30,582						107,255						107,495
Research and development			18,457						16,076						64,393						56,949
General and administrative			20,478						21,754						73,649						68,242
Depreciation and amortization			2,173						2,509						9,567						9,517
Total operating expenses			68,259						70,921						254,864						242,203
Income from operations			34,017						11,287						124,054						64,040
Other expense:
Interest expense			1,758						9,306						25,348						43,437
Other (income) expense, net			(2,026)						254						(3,428)						256
Total other expense			(268)						9,560						21,920						43,693
Income (loss) before income taxes			34,285						1,727						102,134						20,347
(Provision for) benefit from income taxes			(8,571)						(432)						(25,534)						(5,088)
Net income (loss)			$	25,714					$	1,295					$	76,600					$	15,259
Net income per share attributable to common stockholders:
Basic			$	0.17					$	0.01					$	0.55					$	0.11
Diluted			$	0.16					$	0.01					$	0.54					$	0.11
Weighted-average shares used in computing net income per share:
Basic			154,968,918						135,262,441						140,404,763						135,212,597
Diluted			158,856,958						135,710,319						142,514,848						135,647,284

 

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DATTO HOLDING CORP.

GAAP to Non-GAAP Reconciliations and Calculation of Other Key Metrics

(in thousands, except percentages and share and per share amounts)

(unaudited)

 

			Three Months Ended December 31,												Years Ended December 31,
			2020						2019						2020						2019
Non-GAAP Subscription Cost of Revenue
GAAP subscription cost of revenue			$	23,677					$	21,594					$	84,463					$	82,066
Stock-based compensation expense			(3,974)						(21)						(4,092)						(98)
Restructuring expense			—						—						(462)						—
Non-GAAP subscription cost of revenue			$	19,703					$	21,573					$	79,909					$	81,968
Non-GAAP Device Cost of Revenue
GAAP device cost of revenue			$	11,143					$	17,342					$	37,607					$	53,933
Stock-based compensation expense			(203)						—						(203)						—
Non-GAAP device gross cost of revenue			$	10,940					$	17,342					$	37,404					$	53,933
Non-GAAP Professional Services and Other Cost of Revenue
GAAP professional services and other cost of revenue			$	1,845					$	1,689					$	6,244					$	5,563
Stock-based compensation expense			(418)						—						(418)						—
Restructuring expense			—						—						(139)						—
Non-GAAP professional services and other cost of revenue			$	1,427					$	1,689					$	5,687					$	5,563
Non-GAAP Depreciation and Amortization in Cost of Revenue
GAAP depreciation and amortization in cost of revenue			$	6,144					$	4,489					$	21,890					$	15,745
Amortization of acquired intangible assets			(1,498)						(1,175)						(5,023)						(4,700)
Non-GAAP depreciation and amortization in cost of revenue			$	4,646					$	3,314					$	16,867					$	11,045
Non-GAAP Cost of Revenue
GAAP cost of revenue			$	42,809					$	45,114					$	150,204					$	157,307
Amortization of acquired intangible assets			(1,498)						(1,175)						(5,023)						(4,700)
Stock-based compensation expense			(4,595)						(21)						(4,713)						(98)
Restructuring expense			—						—						(601)						—
Non-GAAP cost of revenue			$	36,716					$	43,918					$	139,867					$	152,509
Non-GAAP Gross Profit
GAAP gross profit			$	96,183					$	81,012					$	368,581					$	301,445
Amortization of acquired intangible assets			1,498						1,175						5,023						4,700
Stock-based compensation expense			4,595						21						4,713						98
Restructuring expense			—						—						601						—
Non-GAAP gross profit			$	102,276					$	82,208					$	378,918					$	306,243
Non-GAAP gross margin			73.6		%				65.2		%				73.0		%				66.8		%

 

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DATTO HOLDING CORP.

GAAP to Non-GAAP Reconciliations and Calculation of Other Key Metrics

(in thousands, except percentages and share and per share amounts)

(unaudited)

			Three Months Ended December 31,												Years Ended December 31,
			2020						2019						2020						2019
Non-GAAP Sales and Marketing
GAAP sales and marketing expense			$	31,962					$	31,269					$	115,790					$	110,441
Stock-based compensation expense			(4,811)						(687)						(6,614)						(2,946)
Restructuring expense			—						—						(1,921)						—
Non-GAAP sales and marketing expense			$	27,151					$	30,582					$	107,255					$	107,495
Non-GAAP sales and marketing as a % of revenue			19.5		%				24.2		%				20.7		%				23.4		%
Non-GAAP Research and Development
GAAP research and development expense			$	30,932					$	16,535					$	78,932					$	60,459
Stock-based compensation expense			(12,475)						(459)						(13,590)						(3,510)
Restructuring expense			—						—						(949)						—
Non-GAAP research and development expense			$	18,457					$	16,076					$	64,393					$	56,949
Non-GAAP research and development as a % of revenue			13.3		%				12.7		%				12.4		%				12.4		%
Non-GAAP General and Administrative
GAAP general and administrative expense			$	26,279					$	23,348					$	85,668					$	73,903
Stock-based compensation expense			(5,018)						(1,594)						(8,543)						(5,661)
Restructuring expense			—						—						(364)						—
Transaction related and other expense			(783)						—						(3,112)						—
Non-GAAP general and administrative expense			$	20,478					$	21,754					$	73,649					$	68,242
Non-GAAP general and administrative as a % of revenue			14.7		%				17.2		%				14.2		%				14.9		%
Non-GAAP Depreciation and Amortization in Operating Expenses
GAAP depreciation and amortization in operating expenses			$	6,623					$	6,911					$	27,223					$	27,417
Amortization of acquired intangible assets			(4,450)						(4,402)						(17,656)						(17,900)
Non-GAAP depreciation and amortization in operating expense			$	2,173					$	2,509					$	9,567					$	9,517
Non-GAAP depreciation and amortization in operating expense as a % of revenue			1.6		%				2.0		%				1.8		%				2.1		%
Non-GAAP Operating Expenses
GAAP operating expenses			$	95,796					$	78,063					$	307,613					$	272,220
Amortization of acquired intangible assets			(4,450)						(4,402)						(17,656)						(17,900)
Stock-based compensation expense			(22,304)						(2,740)						(28,747)						(12,117)
Restructuring expense			—						—						(3,234)						—
Transaction related and other expense			(783)						—						(3,112)						—
Non-GAAP operating expenses			$	68,259					$	70,921					$	254,864					$	242,203
Non-GAAP operating expenses as a % of revenue			49.1		%				56.2		%				49.1		%				52.8		%
Non-GAAP Income From Operations
GAAP income from operations			$	387					$	2,949					$	60,968					$	29,225
Amortization of acquired intangible assets			5,948						5,577						22,679						22,600
Stock-based compensation expense			26,899						2,761						33,460						12,215
Restructuring expense			—						—						3,835						—
Transaction related and other expense			783						—						3,112						—
Non-GAAP income from operations			$	34,017					$	11,287					$	124,054					$	64,040
Non-GAAP operating margin			24.5		%				8.9		%				23.9		%				14.0		%

 

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DATTO HOLDING CORP.

GAAP to Non-GAAP Reconciliations and Calculation of Other Key Metrics

(in thousands, except percentages and share and per share amounts)

(unaudited)

 

			Three Months Ended December 31,												Years Ended December 31,
			2020						2019						2020						2019
Non-GAAP Net Income and Net Income Per Share
GAAP net income (loss)			$	(7,168)					$	(8,230)					$	22,498					$	(31,188)
GAAP (provision for) benefit from income taxes			665						(1,619)						(8,062)						2,511
GAAP income (loss) before income taxes			(7,833)						(6,611)						30,560						(33,699)
Loss on extinguishment of debt			8,488						—						8,488						19,231
Amortization of acquired intangible assets			5,948						5,577						22,679						22,600
Stock-based compensation expense			26,899						2,761						33,460						12,215
Restructuring expense			—						—						3,835						—
Transaction related and other expense			783						—						3,112						—
Non-GAAP (provision for) benefit from income taxes			(8,571)						(432)						(25,534)						(5,088)
Non-GAAP net income			$	25,714					$	1,295					$	76,600					$	15,259
Non-GAAP net income per share attributable to common shareholders:
Basic			$	0.17					$	0.01					$	0.55					$	0.11
Diluted			$	0.16					$	0.01					$	0.54					$	0.11
Weighted-Average Shares used in computing Non-GAAP Net Income per Share:
GAAP and Non-GAAP weighted-average shares used in computing net income per share, basic			154,968,918						135,262,441						140,404,763						135,212,597
GAAP weighted-average shares used in computing net income per share, diluted			154,968,918						135,262,441						142,514,848						135,212,597
Adjustment to fully diluted shares			3,888,040						447,878						—						434,687
Non-GAAP weighted-average shares used in computing net income per share, diluted			158,856,958						135,710,319						142,514,848						135,647,284
Adjusted EBITDA
GAAP net income (loss)			$	(7,168)					$	(8,230)					$	22,498					$	(31,188)
Interest and other expense, net			(268)						9,560						21,920						43,693
Loss on extinguishment of debt			8,488						—						8,488						19,231
Depreciation and amortization			12,767						11,400						49,113						43,162
Provision for (benefit from) income tax			(665)						1,619						8,062						(2,511)
Stock-based compensation expense			26,899						2,761						33,460						12,215
Restructuring expense			—						—						3,835						—
Transaction related and other expense			783						—						3,112						—
Adjusted EBITDA			$	40,836					$	17,110					$	150,488					$	84,602
Adjusted EBITDA margin			29.4		%				13.6		%				29.0		%				18.4		%
Free Cash Flow
GAAP net cash provided by operating activities			$	34,643					$	4,612					$	108,698					$	11,235
Less: Purchases of property and equipment			(11,947)						(10,449)						(40,466)						(38,226)
Free cash flow			$	22,696					$	(5,837)					$	68,232					$	(26,991)

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