BigCommerce Announces Fourth Quarter and Fiscal Year 2023 Financial Results

Fourth Quarter Total Revenue of $84.1 Million, an Increase of 16% Versus Prior Year; Fourth Quarter GAAP Net Loss ($3.2) Million, Compared to a Loss of ($33.0) Million Versus Prior Year; Fourth Quarter Adjusted EBITDA of $6.5 Million, a 20-point Increase in Adjusted EBITDA Versus Prior Year; Operating Cash Flow of $13.3 Million


AUSTIN, Texas, Feb. 22, 2024 (GLOBE NEWSWIRE) -- BigCommerce Holdings, Inc. (“BigCommerce”) (Nasdaq: BIGC), a leading Open SaaS ecommerce platform for fast-growing and established B2C and B2B brands, today announced financial results for its fourth quarter and fiscal year ended December 31, 2023.

“One year ago, we set a goal to hit break-even on an adjusted EBITDA basis in Q4 2023. We exceeded that goal with adjusted EBITDA of $6.5 million, or approximately 8% of revenue, representing a nearly 20-point profit margin improvement in the last year,” said Brent Bellm. “In 2024, we are relentlessly focused on customer success and delivering industry-leading products and service to our customers and partners. We aspire to become the most loved ecommerce platform in the world. Our innovations in AI and the recent launch of our next generation Catalyst storefront technology demonstrate our commitment to driving performance and success for B2C and B2B brands and retailers around the world.”

“We have executed a notable financial transformation over the last several quarters,” said Daniel Lentz, CFO at BigCommerce. “In addition to the significant improvement in profitability, we have made strong progress to drive positive operating cash flow of approximately $13 million, growing to 16% of revenue in Q4. We are seeing success from our Q3 2023 restructuring and 2024 financial plan. Cross-sell results are improving, retention is improving, and we continue to see healthy competitive win rates as well. We are optimistic about our 2024 plans and are focused on driving efficient revenue growth.”

Fourth Quarter Financial Highlights:

  • Total revenue was $84.1 million, up 16% compared to the fourth quarter of 2022.
  • Total annual revenue run-rate (ARR) as of December 31, 2023 was $336.5 million, up 8% compared to December 31, 2022.
  • Subscription revenue was $60.6 million, up 14% compared to the fourth quarter of 2022. ARR from accounts with at least one enterprise plan (“Enterprise Accounts”) was $245.1 million as of December 31, 2023, up 9% from December 31, 2022.
  • ARR from Enterprise Accounts as a percent of total ARR was 73% as of December 31, 2023, compared to 72% as of December 31, 2022.
  • GAAP gross margin was 77%, compared to 74% in the fourth quarter of 2022. Non-GAAP gross margin was 79%, compared to 76% in the fourth quarter of 2022.

Other Key Business Metrics

  • Number of enterprise accounts was 5,994, up 4% compared to the fourth quarter of 2022.
  • Average revenue per account (ARPA) of enterprise accounts was $40,891, up 6% compared to the fourth quarter of 2022.
  • Revenue in the Americas grew by 15% compared to the fourth quarter of 2022.
  • Revenue in EMEA grew by 24% and revenue in APAC grew by 22% compared to the fourth quarter of 2022.

Operating Loss and Non-GAAP Operating Income (Loss)

  • GAAP operating loss was ($5.7) million, compared to ($34.7) million in the fourth quarter of 2022.
  • Non-GAAP operating income (loss) was $5.4 million, compared to ($9.4) million in the fourth quarter of 2022.

Net Income (Loss) and Earnings Per Share

  • GAAP net loss was ($3.2) million, compared to ($33.0) million in the fourth quarter of 2022.
  • Non-GAAP net income (loss) was $7.9 million or 9% of revenue, compared to ($7.7) million or (11%) of revenue in the fourth quarter of 2022.
  • GAAP net loss per share was ($0.04) based on 76.2 million shares of common stock, compared to ($0.45) based on 73.8 million shares of common stock in the fourth quarter of 2022.
  • Non-GAAP net income (loss) per share was $0.10 based on 76.2 million shares of common stock, compared to ($0.10) based on 73.8 million shares of common stock in the fourth quarter of 2022.

Adjusted EBITDA

  • Adjusted EBITDA was $6.5 million, compared to ($8.6) million in the fourth quarter of 2022.

Cash

  • Cash, cash equivalents, restricted cash, and marketable securities totaled $271.3 million as of December 31, 2023.
  • For the three months ended December 31, 2023, net cash used in operating activities was $13.3 million, compared to ($2.7) million for the same period in 2022. We reported free cash flow of $12.2 million

Fiscal Year 2023 Financial Highlights:

  • Total revenue was $309.4 million, up 11% compared to fiscal year 2022.
  • Subscription revenue was $229.3 million, up 11% compared to fiscal year 2022.
  • GAAP gross margin was 76%, compared to 75% in fiscal year 2022. Non-GAAP gross margin was 78%, compared to 76% in fiscal year 2022.

Operating Loss and Non-GAAP Operating Income (Loss)

  • GAAP operating loss was ($72.4) million, compared to ($140.6) million in fiscal year 2022.
  • Non-GAAP operating loss was ($5.7) million, compared to ($47.0) million in fiscal year 2022.

Net Income (Loss) and Earnings Per Share

  • GAAP net loss was ($64.7) million, compared to ($139.9) million in fiscal year 2022.
  • Non-GAAP net income (loss) was $2.1 million or 1% of revenue, compared to ($46.3) million or (16.6%) of revenue in fiscal year 2022.
  • GAAP net loss per share was ($0.86) based on 75.1 million shares of common stock, compared to ($1.91) based on 73.2 million shares of common stock in fiscal year 2022.
  • Non-GAAP net income (loss) per share was $0.03 based on 75.1 million shares of common stock, compared to ($0.63) based on 73.2 million shares of common stock in fiscal year 2022.

Adjusted EBITDA

  • Adjusted EBITDA was ($1.6) million, compared to ($43.6) million in fiscal year 2022.

Cash

  • For the twelve months ended December 31, 2023, net cash used in operating activities was ($24.2) million, compared to ($89.4) million for the same period in 2022. We reported free cash flow of ($28.4) million. Excluding the Feedonomics acquisition anniversary related payment, net cash provided by operating activities would have been $8.3 million for the twelve months ended December 31, 2023.

Business Highlights:

Corporate Highlights

  • We have received several pieces of recognition from IDC. BigCommerce was named a Leader in the IDC MarketScape for midmarket B2B digital commerce applications, as well as a Major Player in the IDC MarketScape for enterprise B2B digital commerce applications and the IDC MarketScape for midmarket B2C digital commerce applications. IDC also recognized BigCommerce with a 2023 SaaS Customer Satisfaction Award for Digital Commerce.
  • BigCommerce was honored with the North America Vendors in Partnership (VIP) Award for 2024 Best Commerce or Multi-Vendor Platform, which recognizes solution providers that power the retail ecosystem and new ways that partnerships are formed and challenges are overcome. 
  • We were named to Inc. Business Media’s 2023 Power Partner Awards list, recognizing BigCommerce as a trusted business partner in the ecommerce category for our ongoing commitment to equipping brands and retailers with enterprise-grade functionality, customization and performance to unleash innovation and drive growth.
  • Brands and retailers on BigCommerce again outpaced US and global ecommerce sales during the critical holiday shopping season of Thanksgiving through Cyber Monday. BigCommerce customers experienced a 10% increase in gross merchandise value (GMV) compared to the same period in 2022. Total orders were up 7%, and average order value (AOV) increased 3%, compared to the previous year.

Product Highlights

  • In February, we announced the availability of Catalyst, our next generation storefront technology, for developers and agency partners. Purpose-built for the needs of mid-market and enterprise B2C and B2B brands and retailers, Catalyst is designed to provide a simplified starting point for BigCommerce customers, ecommerce developers and agency partners to easily and quickly build online stores using a composable architecture. A key component of Catalyst is Makeswift, a composable page builder for websites built using the popular Next.js framework that we acquired in the fourth quarter in 2023. Makeswift simplifies the visual administration of storefronts and content pages.
  • We strengthened our B2B offerings with the launch of the new B2B Edition Invoice Portal for large B2B suppliers, manufacturers, distributors and wholesalers to modernize the invoice payment process. The B2B Edition Invoice Portal provides an enterprise-grade, out-of-the-box invoice payment experience that allows B2B customers to incorporate invoice payments into a centralized online purchasing workflow through the B2B Edition Buyer Portal. B2B merchants now have the potential to improve transaction efficiency, reduce operational burdens, and deliver seamless user experiences that can drive brand loyalty and repeat business.

Customer Highlights

  • NVIDIA, the chipmaker and leading AI computing company, launched a new store on BigCommerce, leveraging our multi-storefront functionality and our integration with payment gateway Digital River.
  • MUJI, a fashion and lifestyle brand selling Japanese influenced clothing, furniture and other goods, launched six new stores across the EMEA region. MUJI is taking advantage of BigCommerce’s strong partner ecosystem with integrations from Adyen, PayPal, Klaviyo and Klevu to improve the brand’s online presence and customer experience.
  • Mizuno North America, a globally recognized sports equipment and sportswear company, launched new US and Canadian sites leveraging our multi-storefront capability. 
  • Pharmacy2U, an online pharmacy based in the UK, launched a fully headless site using Storyblok CMS to customize the purchasing journey and BigCommerce APIs for the cart and checkout journey.
  • Smoky Mountain Knife Works, which calls itself the “world’s largest knife showplace,” switched to BigCommerce because of our strong feature set and ease of use. Built with BigCommerce partner EY Studios, the new site takes advantage of our integrations with PayPal, Yotpo, Gorgias, Avalara and others.
  • L’azurde, the fast-growing MENA jewelry brand, launched three new headless commerce sites for Dubai, Egypt and Saudi Arabia with a custom OMS plugged in, built-in Arabic language capabilities and additional integrations.
  • Feedonomics, a BigCommerce company, also added several new customers to its roster, including Ethan Allen, Conair, Canva, GSF Car Parts Limited and Kirk Waidelich.

Partner Highlights

  • Our longtime partner PayPal recently launched Fastlane by PayPal, a new one-click guest checkout experience that merchants using PayPal’s platform will be able to offer their shoppers, allowing them to make a fast and painless purchase. Customers simply save their information with Fastlane to check out in as little as one tap - no username or password to remember, no personal information to update, and no need to share a credit card with businesses all over the web. PayPal piloted Fastlane by PayPal with select merchants on BigCommerce, and early results showed that Fastlane can recognize 70% of guests and improve checkout speeds by nearly 40% compared to a traditional guest checkout process.”
  • BigCommerce and Marketplacer, a global technology platform that enables brands, retailers, suppliers, communities and innovators to build and grow successful online marketplaces at scale, announced a strategic partnership that gives BigCommerce customers the ability to transform their online stores into powerful marketplaces where they can sell more diversified products and provide seamless shopping experiences that drive conversions and accelerate growth.

Q1 and 2024 Financial Outlook:

For the first quarter of 2024, we currently expect:

  • Total revenue between $76.0 million to $78.0 million, implying a year-over-year growth rate of 6% to 9%.
  • Non-GAAP operating income is expected to be between $1.0 million to $2.0 million.

For the full year 2024, we currently expect:

  • Total revenue between $327.1 million and $335.1 million, translating into a year-over-year growth rate of 6% and 8%.
  • Non-GAAP operating income between $8.5 million and $12.5 million.

Our first quarter and 2024 financial outlook is based on a number of assumptions that are subject to change and many of which are outside our control. If actual results vary from these assumptions, our expectations may change. There can be no assurance that we will achieve these results.

We do 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 our 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 7:00 a.m. CT (8:00 a.m. ET) on Thursday, February 22, 2024, to discuss its financial results and business highlights. The conference call can be accessed by dialing (833) 634-1254 from the United States and Canada or (412) 317-6012 internationally and requesting to join the “BigCommerce conference call.” 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 11:59 p.m. ET on Thursday, February 29, 2024, a telephone replay will be available by dialing (877) 344-7529 from the United States, (855) 669-9658 from Canada or (412) 317-0088 internationally with conference ID 8007317. A webcast replay will also be available at http://investors.bigcommerce.com for 12 months.

About BigCommerce

BigCommerce (Nasdaq: BIGC) is a leading open SaaS and composable ecommerce platform that empowers brands and retailers of all sizes to build, innovate and grow their businesses online. BigCommerce provides its customers 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 rely on BigCommerce, including Burrow, Coldwater Creek, Francesca’s, Harvey Nichols, King Arthur Baking Co., MKM Building Supplies, Ted Baker, United Aqua Group and Uplift Desk. For more information, please visit www.bigcommerce.com or follow us on X and LinkedIn.

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 Q1and 2024 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 Annual Report on Form 10-K for the year ended December 31, 2022, our Quarterly report on Form 10-Q filed with the SEC on November 8, 2023, 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.

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 in the Enterprise cohort 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 costs, third party acquisition-related costs, and other acquisition related expenses, including contingent compensation arrangements entered into in connection with acquisitions, depreciation, amortization of acquisition-related intangible assets, interest income, interest expense, restructuring charges, other non-operating income and expense and our provision or benefit for income taxes. The most directly comparable GAAP measure is net loss.

Non-GAAP Operating Income (Loss)

We define Non-GAAP Operating Income (Loss) as our GAAP Loss from operations, excluding the impact of stock-based compensation expense and related payroll tax costs, 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 restructuring charges. The most directly comparable GAAP measure is our loss from operations.

Non-GAAP Net Income (Loss)

We define Non-GAAP Net Income (Loss) as our GAAP net loss, excluding the impact of stock-based compensation expense and related payroll tax costs, 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 restructuring charges. The most directly comparable GAAP measure is our net loss.

Non-GAAP Net Income (Loss) per Share

We define Non-GAAP Net Income (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 provided by (used in) operating activities less our GAAP purchases of property and equipment (Capital Expenditures). The most directly comparable GAAP measure is our cash flow provided by (used in) operating activities.

  
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Consolidated Balance Sheets 
(in thousands) 
(unaudited) 
  
  December 31,  December 31, 
  2023  2022 
       
Assets      
Current assets      
Cash and cash equivalents $71,719  $91,573 
Restricted cash  1,126   1,457 
Marketable securities  198,415   211,941 
Accounts receivable, net  37,713   35,072 
Prepaid expenses and other assets, net  24,733   28,033 
Deferred commissions  8,280   6,171 
Total current assets  341,986   374,247 
Property and equipment, net  10,233   9,083 
Operating lease, right-of-use-assets  4,405   5,887 
Prepaid expenses, net of current portion  1,240   470 
Deferred commissions, net of current portion  7,056   7,037 
Intangible assets, net  27,052   27,583 
Goodwill  52,086   49,749 
Total assets $444,058  $474,056 
Liabilities and stockholders’ equity      
Current liabilities      
Accounts payable $7,982  $7,013 
Accrued liabilities  2,652   2,937 
Deferred revenue  32,242   17,783 
Current portion of debt  547   0 
Current portion of operating lease liabilities  2,542   2,609 
Other current liabilities  24,785   48,444 
Total current liabilities  70,750   78,786 
Long-term portion of debt  339,614   337,497 
Operating lease liabilities, net of current portion  7,610   10,008 
Other long-term liabilities, net of current portion  551   2,093 
Total liabilities  418,525   428,384 
Commitments and contingencies (Note 8)      
Stockholders’ equity      
Common stock, $0.0001 par value; 500,000 shares authorized at December 31, 2023 and 2022, respectively; 76,410 and 73,945 shares issued and outstanding at December 31, 2023 and 2022, respectively.  7   7 
Additional paid-in capital  620,021   576,851 
Accumulated other comprehensive gain (loss)  163   (1,199)
Accumulated deficit  (594,658)  (529,987)
Total stockholders’ equity  25,533   45,672 
Total liabilities and stockholders’ equity $444,058  $474,056 


Consolidated Statements of Operations 
(in thousands, except per share amounts) 
(unaudited) 
  
  Three months ended
December 31,
  Year ended
December 31,
 
  2023  2022  2023  2022 
Revenue $84,149  $72,431  $309,394  $279,075 
Cost of revenue(1)  18,946   18,492   74,202   69,980 
Gross profit  65,203   53,939   235,192   209,095 
Operating expenses:(1)            
Sales and marketing  34,332   35,697   140,230   141,342 
Research and development  19,509   22,669   83,460   88,253 
General and administrative  13,574   17,137   58,838   69,441 
Acquisition related expenses  935   3,775   10,252   35,216 
Restructuring charges  219   7,332   6,434   7,332 
Amortization of intangible assets  2,323   2,016   8,422   8,078 
Total operating expenses  70,892   88,626   307,636   349,662 
Loss from operations  (5,689)  (34,687)  (72,444)  (140,567)
Interest income  3,183   2,068   11,493   4,198 
Interest expense  (719)  (708)  (2,884)  (2,828)
Other income (expense)  (503)  601   (836)  (227)
Loss before provision for income taxes  (3,728)  (32,726)  (64,671)  (139,424)
Benefit (provision) for income taxes  552   (254)  0   (495)
Net loss $(3,176) $(32,980) $(64,671) $(139,919)
Basic net loss per share $(0.04) $(0.45) $(0.86) $(1.91)
Shares used to compute basic net loss per share  76,226   73,819   75,143   73,226 
 

(1) Amounts include stock-based compensation expense and associated payroll tax costs, as follows:

  Three months ended
December 31,
  Year ended
December 31,
 
  2023  2022  2023  2022 
Cost of revenue $1,147  $1,280  $4,949  $4,226 
Sales and marketing  3,415   3,757   13,474   13,551 
Research and development  1,908   3,639   13,478   12,388 
General and administrative  1,105   3,483   9,785   12,821 


Consolidated Statements of Cash Flows 
(in thousands) 
(unaudited) 
  
  Three months ended
December 31,
  Year ended
December 31,
 
  2023  2022  2023  2022 
             
Cash flows from operating activities            
Net loss $(3,176) $(32,980) $(64,671) $(139,919)
Adjustments to reconcile net loss to net cash used in operating activities:          0 
Depreciation and amortization  3,500   2,791   12,480   11,421 
Amortization of discount on debt  496   492   1,976   1,960 
Stock-based compensation expense  7,635   12,146   41,185   42,332 
Provision for expected credit losses  (656)  1,237   805   8,244 
Impairment of right-of-use assets  70   3,763   70   3,763 
Other  (5)  0   167   0 
Changes in operating assets and liabilities:            
Accounts receivable  534   (5,072)  (3,877)  (20,337)
Prepaid expenses  4,581   2,817   2,063   (1,134)
Deferred commissions  (354)  (949)  (2,128)  (3,463)
Accounts payable  1,710   (204)  962   (1,198)
Accrued and other liabilities  (1,083)  11,055   (25,836)  3,669 
Deferred revenue  27   2,211   12,561   5,305 
Net cash provided by (used in) operating activities  13,279   (2,693)  (24,243)  (89,357)
Cash flows from investing activities:            
Cash paid for business combinations  (7,891)  0   (7,891)  (696)
Purchase of property and equipment  (1,043)  (990)  (4,179)  (5,196)
Maturity of marketable securities  36,960   38,900   243,167   103,550 
Purchase of marketable securities  (39,207)  (44,297)  (228,281)  (214,184)
Net cash provided by (used in) investing activities  (11,181)  (6,387)  2,816   (116,526)
Cash flows from financing activities:            
Proceeds from exercise of stock options  136  145   3,849   209 
Taxes paid related to net share settlement of stock options  (12)  0   (3,294)  0 
Repayment of debt  (263)  0   (394)  0 
Proceeds from debt  0   0   1,081   0 
Net cash provided by (used in) financing activities  (139)  145   1,242   209 
Net change in cash and cash equivalents and restricted cash  1,959   (8,935)  (20,185)  (205,674)
Cash and cash equivalents and restricted cash, beginning of period  70,886   101,965   93,030   298,704 
Cash and cash equivalents and restricted cash, end of period $72,845  $93,030  $72,845  $93,030 
Supplemental cash flow information:            
Cash paid for interest $21  $0  $894  $903 
Cash paid for taxes $242  $0  $583  $32 
Noncash investing and financing activities:            
Changes in capital additions, accrued but not paid $168  $0  $168  $0 
Fair value of shares issued as consideration for business combinations $496  $768  $1,417  $5,388 
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 $71,719  $91,573  $71,719  $91,573 
Restricted cash  1,126   1,457   1,126   1,457 
Total cash, cash equivalents and restricted cash $72,845  $93,030  $72,845  $93,030 
  

Disaggregated Revenue:

  Three months ended
December 31,
  Year ended
December 31,
 
(in thousands) 2023  2022  2023  2022 
Subscription solutions $60,613  $53,298  $229,265  $205,800 
Partner and services  23,536   19,133   80,129   73,275 
Revenue $84,149  $72,431  $309,394  $279,075 
  

Revenue by Geography:

  Three months ended
December 31,
  Year ended
December 31,
 
(in thousands) 2023  2022  2023  2022 
Revenue:            
Americas – U.S. $64,055  $56,086  $236,502  $216,639 
Americas – other (1)  3,837   3,131   14,103   12,124 
EMEA  9,475   7,657   34,661   27,743 
APAC  6,782   5,557   24,128   22,569 
Revenue $84,149  $72,431  $309,394  $279,075 
  

(1) Americas-other revenue includes revenue from North and South America, other than the U.S.

 
Reconciliation of GAAP to Non-GAAP Results
(in thousands, except per share amounts)
(unaudited)
 

Reconciliation of loss from operations to Non-GAAP operating income (loss):

  Three months ended
December 31,
  Year ended
December 31,
 
  2023  2022  2023  2022 
(in thousands)            
Revenue $84,149  $72,431  $309,394  $279,075 
             
Loss from operations $(5,689) $(34,687) $(72,444) $(140,567)
Plus: stock-based compensation expense and associated payroll tax costs  7,575   12,159   41,686   42,986 
Acquisition related costs  935   3,775   10,252   35,216 
Restructuring charges  219   7,332   6,434   7,332 
Amortization of intangible assets  2,323   2,016   8,422   8,078 
Non-GAAP operating income (loss) $5,363  $(9,405) $(5,650) $(46,955)
Non-GAAP operating income (loss) as a percentage of revenue  6.4%  (13.0)%  (1.8)%  (16.8)%
                 

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

  Three months ended
December 31,
  Year ended
December 31,
 
  2023  2022  2023  2022 
(in thousands)            
Revenue $84,149  $72,431  $309,394  $279,075 
             
Net loss $(3,176) $(32,980) $(64,671) $(139,919)
Plus: stock-based compensation expense and associated payroll tax costs  7,575   12,159   41,686   42,986 
Acquisition related costs  935   3,775   10,252   35,216 
Restructuring charges  219   7,332   6,434   7,332 
Amortization of intangible assets  2,323   2,016   8,422   8,078 
Non-GAAP net income (loss) $7,876  $(7,698) $2,123  $(46,307)
Shares used to compute basic Non-GAAP net income (loss) per share  76,226   73,819   75,143   73,226 
Shares used to compute diluted Non-GAAP net income (loss) per share (1)  83,679      82,938    
Non-GAAP basic net income (loss) per share $0.10  $(0.10) $0.03  $(0.63)
Non-GAAP diluted net income (loss) per share (1)  0.09      0.03    
Non-GAAP net income (loss) margin as a percentage of revenue  9.4%  (10.6)%  0.7%  (16.6)%
                 
(1) Due to the loss from continuing operations for the three months and twelve months ended December 31, 2022, there are no common shares added to calculate diluted EPS because the effect would be anti-dilutive. 
  

Reconciliation of net loss to adjusted EBITDA:

  Three months ended
December 31,
  Year ended
December 31,
 
  2023  2022  2023  2022 
(in thousands)            
Revenue $84,149  $72,431  $309,394  $279,075 
             
Net loss $(3,176) $(32,980) $(64,671) $(139,919)
Plus: stock-based compensation expense and associated payroll tax costs  7,575   12,159   41,686   42,986 
Acquisition related costs  935   3,775   10,252   35,216 
Restructuring charges  219   7,332   6,434   7,332 
Depreciation  1,177   775   4,058   3,343 
Amortization of intangible assets  2,323   2,016   8,422   8,078 
Interest income  (3,183)  (2,068)  (11,493)  (4,198)
Interest expense  719   708   2,884   2,828 
Other (income) expenses  503   (601)  836   227 
Provision (benefit) for income taxes  (552)  254   0   495 
Adjusted EBITDA $6,540  $(8,630) $(1,592) $(43,612)
Adjusted EBITDA margin as a percentage of revenue  7.8%  (11.9)%  (0.5)%  (15.6)%
  

Reconciliation of cost of revenue to Non-GAAP cost of revenue:

  Three months ended
December 31,
  Year ended
December 31,
 
  2023  2022  2023  2022 
(in thousands)            
Revenue $84,149  $72,431  $309,394  $279,075 
             
Cost of revenue $18,946  $18,492  $74,202  $69,980 
Less: stock-based compensation expense and associated payroll tax costs  1,147   1,280   4,949   4,226 
Non-GAAP cost of revenue $17,799  $17,212  $69,253  $65,754 
As a percentage of revenue  21.2%  23.8%  22.4%  23.6%
  

Reconciliation of sales and marketing expense to Non-GAAP sales and marketing expense:

  Three months ended
December 31,
  Year ended
December 31,
 
  2023  2022  2023  2022 
(in thousands)            
Revenue $84,149  $72,431  $309,394  $279,075 
             
Sales and marketing $34,332  $35,697  $140,230  $141,342 
Less: stock-based compensation expense and associated payroll tax costs  3,415   3,757   13,474   13,551 
Non-GAAP sales and marketing $30,917  $31,940  $126,756  $127,791 
As a percentage of revenue  36.7%  44.1%  41.0%  45.8%
  

Reconciliation of research and development expense to Non-GAAP research and development expense:

  Three months ended
December 31,
  Year ended
December 31,
 
  2023  2022  2023  2022 
(in thousands)            
Revenue $84,149  $72,431  $309,394  $279,075 
             
Research and development $19,509  $22,669  $83,460  $88,253 
Less: stock-based compensation expense and associated payroll tax costs  1,908   3,639   13,478   12,388 
Non-GAAP research and development $17,601  $19,030  $69,982  $75,865 
As a percentage of revenue  20.9%  26.3%  22.6%  27.2%
  

Reconciliation of general and administrative expense to Non-GAAP general and administrative expense:

  Three months ended
December 31,
  Year ended
December 31,
 
  2023  2022  2023  2022 
(in thousands)            
Revenue $84,149  $72,431  $309,394  $279,075 
             
General & administrative $13,574  $17,137  $58,838  $69,441 
Less: stock-based compensation expense and associated payroll tax costs  1,105   3,483   9,785   12,821 
Non-GAAP general & administrative $12,469  $13,654  $49,053  $56,620 
As a percentage of revenue  14.8%  18.9%  15.9%  20.3%
  

Reconciliation of net cash provided by (used in) operating activities to free cash flow:

  Three months ended
December 31,
  Year ended
December 31,
 
  2023  2022  2023  2022 
(in thousands)            
Net cash provided by (used in) operating activities $13,279  $(2,693) $(24,243) $(89,357)
Purchases of property and equipment  (1,043)  (990)  (4,179)  (5,196)
Free cash flow $12,236  $(3,683) $(28,422) $(94,553)
  

Reconciliation of net cash provided by (used in) operating activities to Non-GAAP net cash provided by (used in) operating activities:

  Three months ended
December 31,
  Year ended
December 31,
 
  2023  2022  2023  2022 
(in thousands)            
Net cash provided by (used in) operating activities $13,279  $(2,693) $(24,243) $(89,357)
Feedonomics anniversary payout  0   0   32,500   0 
Non-GAAP net cash provided by (used in) operating activities $13,279  $(2,693) $8,257  $(89,357)