EX-99.1

EX-99.1 2 d299374dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

BigCommerce Announces Fourth Quarter and Fiscal 2021 Financial Results

Fourth Quarter Total Revenue of $64.9 Million, a Year over Year Increase of 50% with Total ARR of $268.7 Million, a Year over Year Increase of 48%

AUSTIN, Texas, February 28, 2022 – BigCommerce Holdings, Inc. (“BigCommerce”) (Nasdaq: BIGC), a leading Open SaaS ecommerce platform for fast-growing and established brands, today announced financial results for its fourth quarter ended December 31, 2021.

“Q4 was another outstanding quarter for BigCommerce as our revenue grew to $64.9 million, up 50% year-over-year. Our full-year revenue grew to $219.9 million, up 44% year-over-year, marking our fourth consecutive year of accelerating revenue and subscription growth,” said Brent Bellm, chief executive officer at BigCommerce. “This growth reflects the flexibility and performance of our Open SaaS platform and the continued execution of our top strategic priorities, particularly international expansion and enterprise growth. Our revenue in EMEA grew by 60% and revenue in APAC increased 54% compared to the fourth quarter of 2020. ARR from enterprise accounts was up 72% over the end of 2020.”

Fourth Quarter Financial Highlights:

•

Total revenue was $64.9 million, up 50% compared to the fourth quarter of 2020.

•

Total annual revenue run-rate (ARR) as of December 31, 2021 was $268.7 million, up 48% compared to December 31, 2020.

•

Subscription revenue was $46.9 million, up 58% compared to the fourth quarter of 2020.

•

ARR from accounts with at least one enterprise plan (“Enterprise Accounts”) was $172.9 million as of December 31, 2021, up 72% from December 31, 2020, reflecting continued strength and growth with mid-market and Enterprise Accounts.

•

ARR from Enterprise Accounts as a percent of total ARR was 64% as of December 31, 2021, compared to 56% as of December 31, 2020.

•

ARR from accounts greater than $2,000 in ACV was $237.2 million as of December 31, 2021, up 59% from December 31, 2020.

•

ARR from accounts greater than $2,000 in ACV as a percent of total ARR was 88%, compared to 82% as of December 31, 2020.

•

GAAP gross margin was 74%, compared to 76% in the fourth quarter of 2020 due to investments in additional localized support and infrastructure behind international expansion and other investments. Non-GAAP gross margin was 76%, compared to 77% in the fourth quarter of 2020.

Fourth Quarter Financials:

Other Key Business Metrics

•

Number of accounts greater than $2,000 in ACV was 12,754, up 25% compared to the fourth quarter of 2020.

•

Average revenue per account (ARPA) of accounts greater than $2,000 in ACV was $18,598, up 27% compared to the fourth quarter of 2020.

•

Revenue in the Americas grew by 49%, compared to the fourth quarter of 2020.

•

Revenue in EMEA grew by 60% and revenue in APAC grew by 54% compared to the fourth quarter of 2020.

Operating Income/(Loss)

•

Fourth quarter ending December 31, 2021, GAAP operating loss was ($33.8) million, compared to ($13.8) million in the fourth quarter 2020. Year ending December 31, 2021, GAAP operating loss was ($75.9) million, compared to ($38.7) million in 2020.

•

Fourth quarter ending December 31, 2021, Non-GAAP operating loss was ($11.6) million, compared to ($7.6) million in the fourth quarter 2020. Year ending December 31, 2021, Non-GAAP operating loss was ($22.8) million, compared to ($27.4) million in 2020.

Net Income/(Loss) and Earnings Per Share

•

GAAP net loss was ($34.2) million, compared to ($14.2) million in the fourth quarter of 2020.

•

Non-GAAP net loss was ($12.1) million or (19%) of total revenue, compared to ($8.0) million or (18%) of total revenue in the fourth quarter of 2020.

•

GAAP net loss per share was ($0.48) based on 72.0 million weighted-average shares of common stock outstanding, compared to ($0.21) based on 68.6 million weighted-average shares of common stock outstanding in the fourth quarter of 2020.

•

Non-GAAP net loss per share was ($0.17) based on 72.0 million weighted-average shares of common stock outstanding, compared to ($0.12) based on 68.6 million weighted-average shares of common stock outstanding in the fourth quarter of 2020.

Adjusted EBITDA

•

Adjusted EBITDA was ($11.0) million, compared to ($6.8) million in the fourth quarter of 2020.

Cash

•

Cash, cash equivalents, restricted cash, and marketable securities totaled $401 million as of December 31, 2021.

•

For the twelve months ended December 31, 2021, net cash used in operating activities was ($40.3) million, compared to ($26.5) million for the same period in 2020.

•

Free cash flow was ($43.6) million, compared to ($28.5) million for the same period in 2020.

Business Highlights:

•

Corporate Highlights: In November, BigCommerce was named to Inc. Magazine’s first annual Best-Led Companies list, a data-driven recognition measuring management excellence in U.S. companies with revenue of $50 million to $2 billion. Earlier this month, we received a 2022 Most Loved Award from TrustRadius, reflecting positive customer reviews BigCommerce has received on TrustRadius. At a time when aggregate U.S. retail ecommerce declined during Cyber Week for the first time, BigCommerce merchants bucked the trend with a year-over-year GMV increase of 15%. In the last two years, BigCommerce merchants’ Cyber Week sales have increased +103%. BigCommerce saw a 100% Cyber Week performance uptime, marking the eighth consecutive year of zero reported site downtime during the peak holiday period. Building on our earlier international expansion into the Netherlands, France and Italy, we formally launched in Mexico, Germany and Spain in January of this year.

•

Product Highlights: Our efforts and strategy remain focused on providing the most flexible Open SaaS ecommerce platform that empowers merchants of all sizes to sell more. The Company launched Google Ads and Listings to help our merchants in the U.S. connect their stores to the Google Merchant Center and add products for free.

•

Merchant Highlights: In the coming days, the Company will launch a new custom-tailored online store for Ted Baker, the UK-based global lifestyle brand. Additionally, BigCommerce added leading brands across numerous categories, merchants including Draper Tools, one of the largest wholesale hardware stores in the UK; Dermaviduals, an Australian skincare company; Vinaggi, an Italy-based wine and spirits company; J.Parker’s, a UK-based, mail-order horticultural supplier of bulbs, plants and shrubs; and King Arthur Baking Company, best known for its flour, which migrated to BigCommerce to improve maintenance efficiency, speed the introduction of new features, and optimize the end-user experience for stronger engagement and improved ecommerce conversion.

•

Partner Highlights: The Company announced an incentivized TikTok advertising coupon program to invest in and help our merchants succeed on TikTok For Business. The Company launched a new strategic partnership with the CMA CGM Group, a world leader in shipping and logistics, and subsidiary NewOxatis, a leading publisher of ecommerce solutions, to enable thousands of NewOxatis’ merchants to build world-class digital storefronts powered by BigCommerce. We launched a new partner integration with Chargify to deliver subscription management services for the U.S. B2C and B2B merchants to efficiently manage, track and analyze all subscription activity from within their store through Open Source Checkout. Last week, we announced a direct integration with Digital River, an experienced global commerce enabler, to provide mid-market to enterprise BigCommerce merchants with an all-in-one global commerce solution that fully manages payments, tax, fraud and compliance to simplify cross-border selling and accelerate global expansion.

Q1 and 2022 Financial Outlook:

For the first quarter of 2022, the Company currently expects:

•

Total revenue between $61.9 million and $65.1 million, translating into a year-over-year growth rate of 33% and 40%.

•

Non-GAAP operating loss between ($11.5) million and ($13.5) million.

For the full year 2022, the Company currently expects:

•

Total revenue between $271.6 million and $283.6 million, translating into a year-over-year growth rate of 24% and 29%, or 27% at the midpoint.

•

Non-GAAP operating loss between ($45.9) million and ($53.9) million.

The Company’s first quarter and 2022 financial outlook is based on a number of assumptions that are subject to change and many of which are outside the Company’s control. If actual results vary from these assumptions, the Company’s expectations may change. There can be no assurance that the Company will achieve these results.

The Company does not provide guidance for operating loss, the most directly comparable GAAP measure to Non-GAAP operating loss, and similarly cannot provide a reconciliation between its forecasted Non-GAAP operating loss and Non-GAAP net loss per share and these comparable GAAP measures without unreasonable effort due to the unavailability of reliable estimates for certain items. These items are not within the Company’s control and may vary greatly between periods and could significantly impact future financial results.

Conference Call Information

BigCommerce will host a conference call and webcast at 4:00 p.m. CT (5:00 p.m. ET) on Monday, February 28, 2022, to discuss its financial results and business highlights. The conference call can be accessed by dialing (833) 519-1347 from the United States or Canada or (914) 800-3909 internationally with conference ID 6398736. The live webcast of the conference call and other materials related to BigCommerce’s financial performance can be accessed from BigCommerce’s investor relations website at http://investors.bigcommerce.com.

Following the completion of the call through 8:00 p.m. ET on March 7, 2022, a telephone replay will be available by dialing (855) 859-2056 from the United States and Canada or (404) 537-3406 internationally with conference ID 6398736. A webcast replay will also be available at http://investors.bigcommerce.com for 12 months.

About BigCommerce

BigCommerce (Nasdaq: BIGC) is a leading open software-as-a-service (SaaS) ecommerce platform that empowers merchants of all sizes to build, innovate and grow their businesses online. BigCommerce provides merchants sophisticated enterprise-grade functionality, customization and performance with simplicity and ease-of-use. Tens of thousands of B2C and B2B companies across 150 countries and numerous industries use BigCommerce to create beautiful, engaging online stores, including Ben & Jerry’s, Molton Brown, S.C. Johnson, Skullcandy, SoloStove and Vodafone. Headquartered in Austin, BigCommerce has offices in London, Kyiv, San Francisco, and Sydney.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “outlook,” “may,” “might,” “plan,” “project,” “will,” “would,” “should,” “could,” “can,” “predict,” “potential,” “strategy, “target,” “explore,” “continue,” or the negative of these terms, and similar expressions intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. These statements may relate to our market size and growth strategy, our estimated and projected costs, margins, revenue, expenditures and customer and financial growth rates, our Q1 and 2022 financial outlook, our plans and objectives for future operations, growth, initiatives or strategies. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance or achievement to differ materially and adversely from those anticipated or implied in the forward-looking statements. These assumptions, uncertainties and risks include that, among others, our business would be harmed by any decline in new customers, renewals or upgrades, our limited operating history makes it difficult to evaluate our prospects and future results of operations, we operate in competitive markets, we may not be able to sustain our revenue growth rate in the future, our business would be harmed by any significant interruptions, delays or outages in services from our platform or certain social media platforms, and a cybersecurity-related attack, significant data breach or disruption of the information technology systems or networks could negatively affect our business. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption “Risk Factors” and elsewhere in our filings with the Securities and Exchange Commission (the “SEC”), including our final prospectus under Rule 424(b) filed with the SEC on November 16, 2020, our Annual Report on Form 10-K for the

year ended December 31, 2020 filed with the SEC on February 26, 2021 and the future quarterly and current reports that we file with the SEC. Forward-looking statements speak only as of the date the statements are made and are based on information available to BigCommerce at the time those statements are made and/or management’s good faith belief as of that time with respect to future events. BigCommerce assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.

Use of Non-GAAP Financial Measures

We have provided in this press release certain financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Our management uses these Non-GAAP financial measures internally in analyzing our financial results and believes that use of these Non-GAAP financial measures is useful to investors as an additional tool to evaluate ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar Non-GAAP financial measures. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable financial measures prepared in accordance with GAAP and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. A reconciliation of our historical Non-GAAP financial measures to the most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review these reconciliations.

Annual Revenue Run-Rate

We calculate annual revenue run-rate (“ARR”) at the end of each month as the sum of: (1) contractual monthly recurring revenue at the end of the period, which includes platform subscription fees, invoiced growth adjustments, feed management subscription fees, recurring professional services revenue, and other recurring revenue, multiplied by twelve to prospectively annualize recurring revenue, and (2) the sum of the trailing twelve-month non-recurring and variable revenue, which includes one-time partner integrations, one-time fees, payments revenue share, and any other revenue that is non-recurring and variable.

Accounts with Greater than $2,000 ACV

We track the total number of accounts with annual contract value (“ACV”) greater than $2,000 (the “ACV threshold”) as of the end of a monthly billing period. To define this $2,000 ACV cohort, we include only subscription plan revenue and exclude partner and services revenue and recurring services revenue. We consider all stores and brands added and subtracted as of the end of the monthly billing period. This metric includes accounts that may have either one single store or brand above the ACV threshold or multiple stores or brands that together exceed the ACV threshold.

Enterprise Account Metrics

To measure the effectiveness of our ability to execute against our growth strategy, particularly within the mid-market and enterprise business segments, we calculate ARR attributable to Enterprise Accounts. We define Enterprise Accounts as accounts with at least one unique Enterprise plan subscription or an enterprise level feed management subscription (collectively “Enterprise Accounts”). These accounts may have more than one Enterprise plan or a combination of Enterprise plans and Essentials plans.

Average Revenue Per Account

We calculate average revenue per account (ARPA) for accounts above the ACV threshold at the end of a period by including customer-billed revenue and an allocation of partner and services revenue, where applicable. We allocate partner revenue, where applicable, primarily based on each customer’s share of GMV processed through that partner’s solution. For partner revenue that is not directly linked to customer usage of a partner’s solution, we allocate such revenue based on each customer’s share of total platform GMV. Each account’s partner revenue allocation is calculated by taking the account’s trailing twelve-month partner revenue, then dividing by twelve to create a monthly average to apply to the applicable period in order to normalize ARPA for seasonality.

Adjusted EBITDA

We define Adjusted EBITDA as our net loss, excluding the impact of stock-based compensation expense and related payroll tax expense, third party acquisition-related costs, and other acquisition related expenses, including contingent compensation arrangements entered into in connection with acquisitions, depreciation and amortization expense, interest income, interest expense, changes in fair value of financial instruments, and our provision for income taxes. The most directly comparable GAAP measure is net loss.

Non-GAAP Operating Loss

We define Non-GAAP Operating Loss as our GAAP Loss from operations, excluding the impact of stock-based compensation expense and related payroll tax expense, third party acquisition-related costs, and other acquisition related expenses, including contingent compensation arrangements entered into in connection with acquisitions and amortization of acquisition-related intangible assets. The most directly comparable GAAP measure is our loss from operations.

Non-GAAP Net Loss

We define Non-GAAP Net Loss as our GAAP net loss, excluding the impact of stock-based compensation expense and related payroll tax expense, third party acquisition-related costs, and other acquisition related expenses, including contingent compensation arrangements entered into in connection with acquisitions, amortization of acquisition-related intangible assets and changes in fair value of financial instruments. The most directly comparable GAAP measure is our net loss.

Non-GAAP Net Loss per Share

We define Non-GAAP Net Loss per Share as our Non-GAAP Net Loss, defined above, divided by our basic and diluted GAAP weighted average shares outstanding. The most directly comparable GAAP measure is our net loss per share.

Free Cash Flow

We define Free Cash flow as our GAAP cash flow from operating activities plus our GAAP purchases of property and equipment (Capital Expenditures). The most directly comparable GAAP measure is our cash flow from operating activities.

Balance Sheet:


	December 31,
	2021			2020
Assets
Current assets
Cash and cash equivalents	$	297,561		$	219,447
Restricted cash		1,143			1,160
Marketable securities		102,315			—
Accounts receivable, net		39,806			22,894
Prepaid expenses and other assets		9,710			8,000
Deferred commissions		4,013			2,571

Total current assets		454,548			254,072
Property and equipment, net		7,429			7,122
Right-of-use-asset		9,515			11,842
Prepaid expenses, net of current portion		831			—
Deferred commissions, net of current portion		5,673			3,590
Intangible assets, net		35,032			—
Goodwill		42,432			—

Total assets	$	555,460		$	276,626

Liabilities and stockholders’ equity
Current liabilities
Accounts payable	$	8,211		$	5,788
Accrued liabilities		2,941			3,344
Deferred revenue		12,752			11,406
Current portion of operating lease liabilities		2,653			3,173
Other current liabilities		36,254			22,176

Total current liabilities		62,811			45,887
Deferred revenue, net of current portion		1,359			1,308
Long-term debt, net of current portion		335,537			—
Operating lease liabilities, net of current portion		10,217			12,672
Other long-term liabilities, net of current portion		7,248			—

Total liabilities		417,172			59,867
Commitments and contingencies (Note 6)
Stockholders’ equity
Preferred stock $0.0001 par value; 10,000 shares authorized at December 31, 2021 and December 31, 2020; 0 shares issued and outstanding at December 31, 2021 and 2020.		—			—
Common stock, $0.0001 par value; 500,000 shares Series 1 and, 5,051 shares Series 2 authorized at December 31, 2021 and December 31, 2020; 72,311, and 65,406 shares Series 1 issued and outstanding at December 31, 2021 and December 31, 2020, respectively, and 0 and 4,106 shares Series 2 issued and, outstanding at December 31, 2021, and December 31, 2020, respectively.		7			7
Additional paid-in capital		528,540			530,143
Accumulated other comprehensive loss		(191	)		—
Accumulated deficit		(390,068	)		(313,391	)

Total stockholders’ equity		138,288			216,759

Total liabilities, convertible preferred stock, and stockholders’ equity	$	555,460		$	276,626

Income Statement:


	Year ended December 31,
	2021			2020			2019
Revenue	$	219,855		$	152,368		$	112,103
Cost of revenue		48,479			34,126			27,023

Gross profit		171,376			118,242			85,080

Operating expenses:
Sales and marketing		99,350			72,470			60,740
Research and development		64,547			48,332			43,123
General and administrative		56,839			36,137			22,204
Acquisition related expenses		23,299			—			—
Amortization of intangible assets		3,284			—			—

Total operating expenses		247,319			156,939			126,067

Loss from operations		(75,943	)		(38,697	)		(40,987	)
Interest income		130			31			245
Interest expense		(828	)		(3,103	)		(1,612	)
Change in fair value of financial instruments		—			4,413			—
Other expense		(70	)		(179	)		(208	)

Loss before provision for income taxes		(76,711	)		(37,535	)		(42,562	)
Provision for income taxes		(34	)		25			28

Net loss		(76,677	)		(37,560	)		(42,590	)
Dividends and accretion of issuance costs on Series F preferred stock	$	—		$	(962	)	$	(7,308	)

Net loss attributable to common stockholders	$	(76,677	)	$	(38,522	)	$	(49,898	)

Basic and diluted net loss per share attributable to common stockholders	$	(1.08	)	$	(0.99	)	$	(2.80	)

Weighted average shares used to compute basic and diluted net loss per share attributable to common stockholders		70,933			39,092			17,834

Cash Flow Statement:


	Year ended December 31,
	2021			2020			2019
Cash flows from operating activities
Net loss	$	(76,677	)	$	(37,560	)	$	(42,590	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		6,151			3,084			2,569
Amortization of discount on debt		574			774			54
Stock-based compensation		25,424			11,058			3,156
Allowance for credit losses		3,474			1,594			988
Accretion on discount to marketable securities		—			—			(69	)
Change in fair value of financial instrument		—			(4,413	)		—
Changes in operating assets and liabilities:
Accounts receivable		(17,279	)		(9,305	)		(6,297	)
Prepaid expenses		(2,413	)		(2,704	)		(1,786	)
Deferred commissions		(3,525	)		(2,396	)		(903	)
Accounts payable		2,137			1,907			(1,582	)
Accrued and other current liabilities		20,437			9,610			8,164
Deferred revenue		1,397			1,822			(1,673	)
Net cash used in operating activities		(40,300	)		(26,529	)		(39,969	)

Cash flows from investing activities:
Cash paid for acquisition		(81,067	)		—			—
Purchase of marketable securities		(107,006	)		—			—
Purchase of property and equipment		(3,304	)		(1,964	)		(5,579	)
Maturity of marketable securities		4,500			—			23,450

Net cash (used in) provided by investing activities		(186,877	)		(1,964	)		17,871

Cash flows from financing activities:
Payment of debt issuance costs		(10,037	)		—			—
Purchase of capped calls		(35,570	)
Proceeds from issuance of common stock upon initial public offering, net of underwriting discounts and commissions and other offering costs		—			171,129			—
Proceeds from issuance of common stock upon secondary offering, net of underwriting discounts and commissions and other offerings costs		—			65,112			—
Payment of Series F dividends		—			(12,814	)		—
Proceeds from exercise of stock options and warrants		5,881			3,279			901
Proceeds from debt		345,000			41,861			18,500
Repayment of debt		—			(28,617	)		(2,050	)

Net cash provided by financing activities		305,274			239,950			17,351

Net change in cash and cash equivalents and restricted cash		78,097			211,457			(4,747	)
Cash and cash equivalents and restricted cash, beginning of period		220,607			9,150			13,897

Cash and cash equivalents and restricted cash, end of period	$	298,704		$	220,607		$	9,150

Supplemental cash flow information:
Cash paid for interest	$	—		$	2,285		$	1,626

Noncash investing and financing activities:
Fair value of shares issued as consideration for acquisition		2,003			—			—
Conversion of convertible preferred stock into common stock upon initial public offering		—			211,902			—
Conversion of convertible debt into common stock upon initial public offering	$	—		$	50,173		$	—

Reconciliation of cash, cash equivalents and restricted cash within the condensed consolidated balance sheet to the amounts shown in the statements of cash flows above:
Cash and cash equivalents		297,561			219,447			7,795
Restricted cash		1,143			1,160			1,355
Total cash, cash equivalents and restricted cash	$	298,704		$	220,607		$	9,150

Disaggregated Revenue:


	Year ended December 31,
(in thousands)	2021		2020		2019
Subscription solutions	$	154,933	$	103,706	$	82,689
Partner and services		64,922		48,662		29,414

Total revenue	$	219,855	$	152,368	$	112,103

Rev by Geo:


	Year ended December 31,
(in thousands)	2021		2020		2019
Revenue:
Americas—U.S.	$	169,737	$	120,934	$	91,057
Americas—other		8,559		5,371		3,761
EMEA		20,783		12,396		7,370
APAC		20,776		13,667		9,915

Total revenue	$	219,855	$	152,368	$	112,103

Reconciliation of operating loss to Non-GAAP operating loss:


	Year ended December 31,
	2021			2020			2019

	(dollars in thousands)
Operating loss	$	(75,943	)	$	(38,697	)	$	(40,987	)
Less: stock-based compensation expense		25,424			11,058			3,156
Less: payroll tax associated with stock-based compensation expense		1,111			222			—
Less: third-party acquisition related costs		23,299			—			—
Less: amortization of intangible assets		3,284			—			—

Non-GAAP operating loss		(22,825	)		(27,417	)		(37,831	)

Non-GAAP operating margin		(10.4	)%		(18.0	)%		(33.7	)%

Reconciliation of net loss & net loss per share to Non-GAAP net loss & Non-GAAP net loss per share:


	Year ended December 31,
	2021			2020			2019

	(dollars in thousands)
Net Loss	$	(76,677	)	$	(37,560	)	$	(42,590	)
Less: stock-based compensation expense		25,424			11,058			3,156
Less: payroll tax associated with stock-based compensation expense		1,111			222			—
Less: third-party acquisition related costs		23,299			—			—
Less: amortization of intangible assets		3,284			—			—
Less: change in fair value of financial instruments		—			(4,413	)		—
Non-GAAP net loss		(23,559	)		(30,693	)		(39,434	)
Non-GAAP net loss per share		(0.33	)		(0.79	)		(2.21	)
Weighted average shares used to compute basic and diluted net loss per share attributable to common stockholders		70,933			39,092			17,834

Non-GAAP net loss margin		(10.7	)%		(20.1	)%		(35.2	)%

Reconciliation of net loss to adjusted EBITDA:


	Year ended December 31,
	2021			2020			2019

	(dollars in thousands)
Net loss	$	(76,677	)	$	(37,560	)	$	(42,590	)
Stock-based compensation expense		25,424			11,058			3,156
Payroll tax associated with stock based-compensation expense		1,111			222			—
Third-party acquisition related costs		23,299			—			—
Depreciation		2,867			3,084			2,569
Amortization of intangible assets		3,284			—			—
Interest income		(130	)		(31	)		(245	)
Interest expense		828			3,103			1,612
Change in fair value of financial instrument		—			(4,413	)		—
Provision for income taxes		(34	)		25			28

Adjusted EBITDA	$	(20,028	)	$	(24,512	)	$	(35,470	)

Adjusted EBITDA margin		(9.1	)%		(16.1	)%		(31.6	)%

COR:


	Year ended December 31,
	2021			2020			2019

	(dollars in thousands)
Cost of revenue	$	48,479		$	34,126		$	27,023
Less: share-based compensation expense		2,055			769			191
Less: payroll tax associated with share-based compensation expense		67			34			—

Non-GAAP cost of revenue		46,357			33,323			26,832

As of % of revenue		21.1	%		21.9	%		23.9	%

Sales and marketing:


	Year ended December 31,
	2021			2020			2019

	(dollars in thousands)
Sales and marketing	$	99,350		$	72,470		$	60,740
Less: share-based compensation expense		7,761			3,310			838
Less: payroll tax associated with share-based compensation expense		483			155			—

Non-GAAP sales and marketing		91,106			69,005			59,902

As of % of revenue		41.4	%		45.3	%		53.4	%

Research and development:


	Year ended December 31,
	2021			2020			2019

	(dollars in thousands)
Research and development	$	64,547		$	48,332		$	43,123
Less: share-based compensation expense		5,901			2,500			666
Less: payroll tax associated with share-based compensation expense		269			—			—

Non-GAAP research and development		58,377			45,832			42,457

As of % of revenue		26.6	%		30.1	%		37.9	%

General and administrative:


	Year ended December 31,
	2021			2020			2019

	(dollars in thousands)
General and administrative	$	56,839		$	36,137		$	22,204
Less: share-based compensation expense		9,707			4,479			1,461
Less: payroll tax associated with share-based compensation expense		292			33			—

Non-GAAP general and administrative		46,840			31,625			20,743

As of % of revenue		21.3	%		20.8	%		18.5	%

Free cash flow (FCF):


	Year ended December 31,
	2021			2020			2019

	(dollars in thousands)
Net cash used in operating activities	$	(40,300	)	$	(26,529	)	$	(39,969	)
Capital expenditures	$	(3,304	)	$	(1,964	)	$	(5,579	)

Free cash flow	$	(43,604	)	$	(28,493	)	$	(45,548	)

YoY comparisons: