Samsara Reports Third Quarter Fiscal Year 2024 Financial Results

Nov 30, 2023 04:10 pm
SAN FRANCISCO -- 

Samsara Inc. (NYSE: IOT), the pioneer of the Connected Operations Cloud, reported financial results for the third quarter ended October 28, 2023, and released a shareholder letter accessible from the Samsara investor relations website at investors.samsara.com.

“We achieved an important milestone this quarter as we surpassed $1 billion in ARR in just our eighth year of selling,” said Sanjit Biswas, CEO and co-founder of Samsara. “As a strategic partner to the world’s leading and most complex physical operations organizations, we look forward to the continued partnership and the impact we will make on their communities as we work to improve the safety, efficiency, and sustainability of their operations.”

Third Quarter Fiscal Year 2024 Financial Highlights

(In millions, except percentage, percentage points, and per share data)

 

Q3 FY2024

Q3 FY2023

Y/Y Change

Annual Recurring Revenue (ARR)

$

1,002.7

 

$

723.7

 

 

39

%

Total revenue

$

237.5

 

$

169.8

 

 

40

%

GAAP gross profit

$

175.9

 

$

122.5

 

$

53.4

 

GAAP gross margin

 

74

%

 

72

%

2 pts

Non-GAAP gross profit

$

179.0

 

$

125.2

 

$

53.8

 

Non-GAAP gross margin

 

75

%

 

74

%

1 pt

GAAP operating loss

$

(54.8

)

$

(63.5

)

$

8.7

 

GAAP operating margin

 

(23

%)

 

(37

%)

14 pts

Non-GAAP operating income (loss)

$

12.7

 

$

(16.6

)

$

29.3

 

Non-GAAP operating margin

 

5

%

 

(10

%)

15 pts

GAAP net loss per share, basic and diluted

$

(0.08

)

$

(0.11

)

$

0.03

 

Non-GAAP net income (loss) per share, basic and diluted

$

0.04

 

$

(0.02

)

$

0.06

 

Net cash provided by (used in) operating activities

$

11.9

 

$

(12.9

)

$

24.8

 

Free cash flow

$

8.5

 

$

(23.2

)

$

31.7

 

Adjusted free cash flow

$

8.5

 

$

(14.9

)

$

23.4

 

Net cash provided by (used in) operating activities margin

 

5

%

 

(8

%)

13 pts

Free cash flow margin

 

4

%

 

(14

%)

18 pts

Adjusted free cash flow margin

 

4

%

 

(9

%)

13 pts

We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with generally accepted accounting principles (“GAAP”). See the section titled “Use of Non-GAAP Financial Measures” for an explanation of non-GAAP financial measures and the tables in the section titled “Reconciliation Between GAAP and Non-GAAP Financial Measures” for a reconciliation of GAAP to non-GAAP financial measures.

Financial Outlook

Our guidance includes GAAP and non-GAAP financial measures. For the fourth quarter and fiscal year 2024, Samsara expects the following:

 

Q4 FY2024 Outlook

FY 2024 Outlook

Total revenue

$257 million – $259 million

 

$918 million – $920 million

Year/Year growth

38% – 39%

 

41%

Non-GAAP operating margin

2%

 

(1%)

Non-GAAP net income per share, diluted

$0.02 – $0.03

 

$0.05 – $0.06

A reconciliation of non-GAAP guidance financial measures to corresponding GAAP guidance financial measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty and potential variability of expenses, such as stock-based compensation expense-related charges, that may be incurred in the future and cannot be reasonably determined or predicted at this time. It is important to note that these factors could be material to our results of operations computed in accordance with GAAP.

About Samsara

Samsara is the pioneer of the Connected Operations™ Cloud, which is a platform that enables organizations that depend on physical operations to harness Internet of Things (IoT) data to develop actionable insights and improve their operations. With tens of thousands of customers across North America and Europe, Samsara is a proud technology partner to the people who keep our global economy running, including the world’s leading organizations across construction, transportation and warehousing, field services, manufacturing, retail, logistics, and public sector. The company’s mission is to increase the safety, efficiency, and sustainability of the operations that power the global economy.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements may relate to, but are not limited to, expectations of future operating results or financial performance, the calculation of certain of our key financial and operating metrics, our market opportunity, industry developments and trends, customer demand for our solution, macroeconomic conditions and any expected benefits of our products, and our competitive position, as well as assumptions relating to the foregoing.

Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and could cause actual results and events to differ. In some cases, you can identify forward-looking statements by terminology such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “goal,” “guidance,” “intend,” “may,” “objective,” “ongoing,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or the negative of these terms or other comparable expressions that concern our expectations, strategies, plans, or intentions. You should not put undue reliance on any forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Forward-looking statements are based on information available at the time those statements are made, including information furnished to us by third parties that we have not independently verified, and/or management’s good faith beliefs and assumptions as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this press release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements.

These risks and uncertainties include our ability to retain customers and expand the Applications used by our customers, our ability to attract new customers, our future financial performance, including trends in revenue and annual recurring revenue, net retention rate, costs of revenue, gross profit or gross margin, operating expenses, customer counts, non-GAAP financial measures (such as non-GAAP gross margin, non-GAAP operating margin, free cash flow margin, and adjusted free cash flow margin), our ability to achieve or maintain profitability, the demand for our products or for solutions for connected operations in general, the impact of the Russia-Ukraine conflict, geopolitical tensions involving China, the conflict in Israel and Gaza, the emergence of pandemics and epidemics, and macroeconomic conditions globally on our and our customers’, partners’ and suppliers’ operations and future financial performance, possible harm caused by silicon component shortages and other supply chain constraints, the length of our sales cycles, possible harm caused by a security breach or other incident affecting our or our customers’ assets or data, our ability to compete successfully in competitive markets, our ability to respond to rapid technological changes, and our ability to continue to innovate and develop new Applications. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our filings and reports that we may file from time to time with the Securities and Exchange Commission, including our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.

Except as required by law, we do not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise.

Use of Non-GAAP Financial Measures

This document includes certain non-GAAP financial measures. Reconciliations of non-GAAP financial measures to our financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data.

Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for financial information presented under GAAP. There are a number of limitations related to the use of non-GAAP financial measures versus comparable financial measures determined under GAAP. For example, other companies in our industry may calculate these non-GAAP financial measures differently or may use other measures to evaluate their performance. In addition, free cash flow and adjusted free cash flow do not reflect our future contractual commitments or the total increase or decrease of our cash balance for a given period. These and other limitations could reduce the usefulness of these non-GAAP financial measures as analytical tools. Investors are encouraged to review the related GAAP financial measures and the reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures and to not rely on any single financial measure to evaluate our business.

We present these non-GAAP financial measures to assist investors in seeing Samsara’s operating results through the eyes of management and because we believe that these measures provide an additional tool for investors to evaluate our business.

Expenses Excluded from Non-GAAP Financial Measures—Stock-based compensation expense is excluded primarily because it is a non-cash expense that management believes is not reflective of our ongoing operational performance. Employer taxes on employee equity transactions, which is a cash expense, is excluded because such taxes are tied to the timing and size of the vesting of the underlying equity awards and the price of our common stock at the time of vesting, which may vary from period to period independent of the operating performance of our business. Lease modification, impairment, and related charges are excluded because such charges are not reflective of our ongoing operational performance.

Operating Metrics and Non-GAAP Financial Measures

Annual Recurring Revenue—We define ARR as the annualized value of subscription contracts that have commenced revenue recognition as of the measurement date.

Non-GAAP Gross Profit and Non-GAAP Gross Margin—We define non-GAAP gross profit as gross profit excluding the effect of stock-based compensation expense-related charges, including employer taxes on employee equity transactions, included in cost of revenue. Non-GAAP gross margin is defined as non-GAAP gross profit as a percentage of total revenue. We use non-GAAP gross profit and non-GAAP gross margin in conjunction with traditional GAAP measures to evaluate our financial performance. We believe that non-GAAP gross profit and non-GAAP gross margin provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations.

Non-GAAP Income (Loss) from Operations and Non-GAAP Operating Margin—We define non-GAAP income (loss) from operations, or non-GAAP operating income (loss), as income (loss) from operations excluding the effect of stock-based compensation expense-related charges, including employer taxes on employee equity transactions, and lease modification, impairment, and related charges. Non-GAAP operating margin is defined as non-GAAP operating income (loss) as a percentage of total revenue. We use non-GAAP income (loss) from operations and non-GAAP operating margin in conjunction with traditional GAAP measures to evaluate our financial performance. We believe that non-GAAP income (loss) from operations and non-GAAP operating margin provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations.

Non-GAAP Net Income (Loss) and Non-GAAP Net Income (Loss) per Share—We define non-GAAP net income (loss) as net loss excluding the effect of stock-based compensation expense-related charges, including employer taxes on employee equity transactions, and lease modification, impairment, and related charges. Our non-GAAP net income (loss) per share–basic is calculated by dividing non-GAAP net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Our non-GAAP net income per share–diluted is calculated by giving effect to all potentially dilutive common stock equivalents (stock options, restricted stock units, shares issued under our 2021 Employee Stock Purchase Plan) to the extent they are dilutive. Non-GAAP net loss per share–diluted is the same as non-GAAP net loss per share–basic as the inclusion of all potential dilutive common stock equivalents would be antidilutive. We use non-GAAP net income (loss) and non-GAAP net income (loss) per share in conjunction with traditional GAAP measures to evaluate our financial performance. We believe that non-GAAP net income (loss) and non-GAAP net income (loss) per share provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations.

Free Cash Flow and Free Cash Flow Margin—We define free cash flow as net cash provided by (used in) operating activities reduced by cash used for purchases of property and equipment. Free cash flow margin is calculated as free cash flow as a percentage of total revenue. We believe that free cash flow and free cash flow margin, even if negative, are useful in evaluating liquidity and provide information to management and investors about our ability to fund future operating needs and strategic initiatives.

Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin—We define adjusted free cash flow as free cash flow plus non-recurring capital expenditures associated with the build-out of our corporate office facilities in San Francisco, California, net of tenant allowances. Adjusted free cash flow margin is calculated as adjusted free cash flow as a percentage of total revenue. We believe that adjusted free cash flow and adjusted free cash flow margin, even if negative, are useful in evaluating liquidity and provide information to management and investors about our ability to fund future operating needs and strategic initiatives by excluding the impact of non-recurring events.

Webcast Information and Shareholder Letter

An investor presentation and accompanying shareholder letter is accessible from the Samsara investor relations website at https://investors.samsara.com/. Samsara will host a live webcast to discuss the results at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) today. The live webcast may be accessed at https://investors.samsara.com/. Following the webcast, a replay will be accessible from the same website.

SAMSARA INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

 

 

 

As of

 

October 28, 2023

January 28, 2023

Assets

 

 

Current assets:

 

 

Cash and cash equivalents

$

208,099

 

$

200,670

 

Short-term investments

 

451,659

 

 

489,192

 

Accounts receivable, net

 

115,199

 

 

122,867

 

Inventories

 

27,103

 

 

40,571

 

Connected device costs, current

 

99,230

 

 

82,046

 

Prepaid expenses and other current assets

 

39,593

 

 

22,189

 

Total current assets

 

940,883

 

 

957,535

 

Restricted cash

 

21,683

 

 

23,096

 

Long-term investments

 

189,414

 

 

113,101

 

Property and equipment, net

 

56,635

 

 

59,278

 

Operating lease right-of-use assets

 

85,491

 

 

112,624

 

Connected device costs, non-current

 

214,665

 

 

194,852

 

Deferred commissions

 

161,463

 

 

140,166

 

Other assets, non-current

 

16,140

 

 

16,356

 

Total assets

$

1,686,374

 

$

1,617,008

 

Liabilities and stockholders’ equity

 

 

Current liabilities:

 

 

Accounts payable

$

38,263

 

$

30,144

 

Accrued expenses and other current liabilities

 

51,930

 

 

53,824

 

Accrued compensation and benefits

 

28,360

 

 

36,030

 

Deferred revenue, current

 

367,401

 

 

300,113

 

Operating lease liabilities, current

 

20,529

 

 

22,047

 

Total current liabilities

 

506,483

 

 

442,158

 

Deferred revenue, non-current

 

136,320

 

 

126,452

 

Operating lease liabilities, non-current

 

83,342

 

 

100,873

 

Other liabilities, non-current

 

9,298

 

 

9,506

 

Total liabilities

 

735,443

 

 

678,989

 

Commitments and contingencies

 

 

Stockholders’ equity:

 

 

Preferred stock

 

 

 

 

Class A common stock

 

9

 

 

7

 

Class B common stock

 

23

 

 

23

 

Class C common stock

 

 

 

 

Additional paid-in capital

 

2,294,065

 

 

2,107,013

 

Accumulated other comprehensive loss

 

(1,439

)

 

(652

)

Accumulated deficit

 

(1,341,727

)

 

(1,168,372

)

Total stockholders’ equity

 

950,931

 

 

938,019

 

Total liabilities and stockholders’ equity

$

1,686,374

 

$

1,617,008

 

SAMSARA INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(In thousands, except share and per share data)

(Unaudited)

 

 

 

 

 

 

Three Months Ended

Nine Months Ended

 

October 28, 2023

October 29, 2022

October 28, 2023

October 29, 2022

Revenue

$

237,534

 

$

169,800

 

$

661,111

 

$

465,968

 

Cost of revenue

 

61,585

 

 

47,253

 

 

178,008

 

 

131,128

 

Gross profit

 

175,949

 

 

122,547

 

 

483,103

 

 

334,840

 

Operating expenses

 

 

 

 

Research and development

 

60,820

 

 

49,970

 

 

185,155

 

 

132,802

 

Sales and marketing

 

116,780

 

 

94,056

 

 

353,643

 

 

273,347

 

General and administrative

 

48,354

 

 

41,997

 

 

139,888

 

 

127,098

 

Lease modification, impairment, and related charges

 

4,762

 

 

 

 

4,762

 

 

1,056

 

Total operating expenses

 

230,716

 

 

186,023

 

 

683,448

 

 

534,303

 

Loss from operations

 

(54,767

)

 

(63,476

)

 

(200,345

)

 

(199,463

)

Interest income and other income (expense), net

 

9,378

 

 

5,613

 

 

28,493

 

 

7,094

 

Loss before provision for income taxes

 

(45,389

)

 

(57,863

)

 

(171,852

)

 

(192,369

)

Provision for income taxes

 

142

 

 

692

 

 

1,503

 

 

1,455

 

Net loss

$

(45,531

)

$

(58,555

)

$

(173,355

)

$

(193,824

)

Other comprehensive loss:

 

 

 

 

Foreign currency translation adjustments

 

(820

)

 

315

 

 

276

 

 

416

 

Unrealized gains (losses) on investments, net of tax

 

382

 

 

(1,304

)

 

(1,063

)

 

(1,304

)

Other comprehensive loss

 

(438

)

 

(989

)

 

(787

)

 

(888

)

Comprehensive loss

$

(45,969

)

$

(59,544

)

$

(174,142

)

$

(194,712

)

Basic and diluted net loss per share:

 

 

 

 

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

$

(0.08

)

$

(0.11

)

$

(0.33

)

$

(0.38

)

Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted

 

537,464,892

 

 

516,551,258

 

 

531,873,324

 

 

511,867,718

 

SAMSARA INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

 

 

 

 

Three Months Ended

Nine Months Ended

 

October 28, 2023

October 29, 2022

October 28, 2023

October 29, 2022

Operating activities

 

 

 

 

Net loss

$

(45,531

)

$

(58,555

)

$

(173,355

)

$

(193,824

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

Depreciation and amortization

 

3,646

 

 

3,345

 

 

10,839

 

 

8,350

 

Stock-based compensation expense

 

59,791

 

 

45,538

 

 

172,395

 

 

133,490

 

Lease modification, impairment, and related charges

 

4,762

 

 

 

 

4,762

 

 

1,056

 

Other non-cash adjustments

 

(2,167

)

 

454

 

 

(10,681

)

 

3,336

 

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable, net

 

(2,943

)

 

(14,934

)

 

3,824

 

 

(13,297

)

Inventories

 

(5,336

)

 

(5,446

)

 

13,467

 

 

(11,434

)

Prepaid expenses and other current assets

 

(17,691

)

 

(2,388

)

 

(17,448

)

 

(5,300

)

Connected device costs

 

(9,333

)

 

(22,279

)

 

(36,997

)

 

(58,993

)

Deferred commissions

 

(8,219

)

 

(4,122

)

 

(21,297

)

 

(10,455

)

Other assets, non-current

 

(104

)

 

(1,590

)

 

267

 

 

(1,520

)

Accounts payable and other liabilities

 

5,043

 

 

27,820

 

 

(206

)

 

(9,398

)

Deferred revenue

 

26,684

 

 

19,673

 

 

77,155

 

 

60,557

 

Operating lease right-of-use assets and liabilities, net

 

3,287

 

 

(404

)

 

7,338

 

 

(1,216

)

Net cash provided by (used in) operating activities

 

11,889

 

 

(12,888

)

 

30,063

 

 

(98,648

)

Investing activities

 

 

 

 

Purchase of property and equipment

 

(3,355

)

 

(10,307

)

 

(8,858

)

 

(27,237

)

Purchases of investments

 

(167,012

)

 

(355,730

)

 

(541,401

)

 

(355,730

)

Proceeds from sales of investments

 

1,700

 

 

 

 

6,174

 

 

 

Proceeds from maturities and redemptions of investments

 

167,215

 

 

 

 

508,093

 

 

 

Other investing activities

 

 

 

432

 

 

(50

)

 

432

 

Net cash used in investing activities

 

(1,452

)

 

(365,605

)

 

(36,042

)

 

(382,535

)

Financing activities

 

 

 

 

Proceeds from issuance of common stock in connection with equity compensation plans

 

265

 

 

164

 

 

13,435

 

 

10,868

 

Payment of offering costs

 

 

 

(324

)

 

 

 

(2,532

)

Payment of principal on finance leases

 

(501

)

 

(369

)

 

(1,416

)

 

(856

)

Net cash provided by (used in) financing activities

 

(236

)

 

(529

)

 

12,019

 

 

7,480

 

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

 

(542

)

 

(75

)

 

(24

)

 

(471

)

Net increase (decrease) in cash, cash equivalents, and restricted cash

 

9,659

 

 

(379,097

)

 

6,016

 

 

(474,174

)

Cash, cash equivalents, and restricted cash, beginning of period

 

220,123

 

 

849,233

 

 

223,766

 

 

944,310

 

Cash, cash equivalents, and restricted cash, end of period

$

229,782

 

$

470,136

 

$

229,782

 

$

470,136

 

SAMSARA INC.

RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL MEASURES

(In thousands, except percentages and per share data)

(Unaudited)

 

 

Three Months Ended

Nine Months Ended

 

October 28, 2023

October 29, 2022

October 28, 2023

October 29, 2022

Gross profit and gross margin reconciliation

 

 

 

 

GAAP gross profit

$

175,949

 

$

122,547

 

$

483,103

 

$

334,840

 

Add:

 

 

 

 

Stock-based compensation expense-related charges (1)

 

3,100

 

 

2,685

 

 

9,307

 

 

7,043

 

Non-GAAP gross profit

$

179,049

 

$

125,232

 

$

492,410

 

$

341,883

 

GAAP gross margin

 

74

%

 

72

%

 

73

%

 

72

%

Non-GAAP gross margin

 

75

%

 

74

%

 

74

%

 

73

%

 

 

 

 

 

Operating income (loss) and operating margin reconciliation

 

 

 

 

GAAP loss from operations

$

(54,767

)

$

(63,476

)

$

(200,345

)

$

(199,463

)

Add:

 

 

 

 

Stock-based compensation expense-related charges (1)

 

62,712

 

 

46,869

 

 

183,355

 

 

136,093

 

Lease modification, impairment, and related charges

 

4,762

 

 

 

 

4,762

 

 

1,056

 

Non-GAAP income (loss) from operations

$

12,707

 

$

(16,607

)

$

(12,228

)

$

(62,314

)

GAAP operating margin

 

(23

)%

 

(37

)%

 

(30

)%

 

(43

)%

Non-GAAP operating margin

 

5

%

 

(10

)%

 

(2

)%

 

(13

)%

__________

(1)

Stock-based compensation expense-related charges were included in the following line items of our condensed consolidated statements of operations and comprehensive loss as follows:

 

Three Months Ended

Nine Months Ended

 

October 28, 2023

October 29, 2022

October 28, 2023

October 29, 2022

Cost of revenue

$

3,100

$

2,685

$

9,307

$

7,043

Research and development

 

22,594

 

18,420

 

68,716

 

46,287

Sales and marketing

 

20,219

 

12,701

 

55,310

 

41,759

General and administrative

 

16,799

 

13,063

 

50,022

 

41,004

Total stock-based compensation expense-related charges (2)

$

62,712

$

46,869

$

183,355

$

136,093

__________

(2)

Stock-based compensation expense-related charges included approximately $2.9 million and $11.0 million of employer taxes on employee equity transactions for the three and nine months ended October 28, 2023, respectively, and approximately $1.3 million and $2.6 million of employer taxes on employee equity transactions for the three and nine months ended October 29, 2022, respectively.

 

Three Months Ended

Nine Months Ended

 

October 28, 2023

October 29, 2022

October 28, 2023

October 29, 2022

GAAP net loss

$

(45,531

)

$

(58,555

)

$

(173,355

)

$

(193,824

)

Add:

 

 

 

 

Stock-based compensation expense-related charges, net of applicable taxes

 

62,712

 

 

46,869

 

 

183,355

 

 

136,093

 

Lease modification, impairment, and related charges, net of applicable taxes

 

4,762

 

 

 

 

4,762

 

 

1,056

 

Non-GAAP net income (loss)

$

21,943

 

$

(11,686

)

$

14,762

 

$

(56,675

)

SAMSARA INC.

RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL MEASURES

(In thousands, except percentages and per share data)

(Unaudited)

 

 

Three Months Ended

Nine Months Ended

 

October 28, 2023

October 29, 2022

October 28, 2023

October 29, 2022

Net income (loss) per share, basic and diluted, reconciliation

 

 

 

 

GAAP net loss per share attributable to common stockholders, basic and diluted

$

(0.08

)

$

(0.11

)

$

(0.33

)

$

(0.38

)

Total impact on net loss per share, basic and diluted, from non-GAAP adjustments

 

0.12

 

 

0.09

 

 

0.36

 

 

0.27

 

Non-GAAP net income (loss) per share attributable to common stockholders, basic and diluted (1)

$

0.04

 

$

(0.02

)

$

0.03

 

$

(0.11

)

Weighted-average shares used in computing GAAP net loss per share attributable to common stockholders, basic and diluted

 

537,464,892

 

 

516,551,258

 

 

531,873,324

 

 

511,867,718

 

Weighted-average shares used in computing non-GAAP net income (loss) per share attributable to common stockholders, basic

 

537,464,892

 

 

516,551,258

 

 

531,873,324

 

 

511,867,718

 

Weighted-average shares used in computing non-GAAP net income (loss) per share attributable to common stockholders, diluted (1)

 

566,082,414

 

 

516,551,258

 

 

559,620,309

 

 

511,867,718

 

__________

(1)

For each period in which we had non-GAAP net income, diluted non-GAAP net income per share is calculated using weighted-average number of shares of common stock outstanding during the period, adjusted for dilutive potential shares that were assumed outstanding during the period.

Three Months Ended

Nine Months Ended

 

October 28, 2023

October 29, 2022

October 28, 2023

October 29, 2022

Free cash flow, adjusted free cash flow, free cash flow margin, and adjusted free cash flow margin reconciliation

 

 

 

 

Net cash provided by (used in) operating activities

$

11,889

 

$

(12,888

)

$

30,063

 

$

(98,648

)

Purchase of property and equipment

 

(3,355

)

 

(10,307

)

 

(8,858

)

 

(27,237

)

Free cash flow (1)

 

8,534

 

 

(23,195

)

 

21,205

 

 

(125,885

)

Purchase of property and equipment for build-out of corporate office facilities, net of tenant allowances (1)

 

 

 

8,309

 

 

(10,179

)

 

21,874

 

Adjusted free cash flow (1)

$

8,534

 

$

(14,886

)

$

11,026

 

$

(104,011

)

Net cash provided by (used in) operating activities margin

 

5

%

 

(8

)%

 

5

%

 

(21

)%

Free cash flow margin (1)

 

4

%

 

(14

)%

 

3

%

 

(27

)%

Adjusted free cash flow margin (1)

 

4

%

 

(9

)%

 

2

%

 

(22

)%

__________

(1)

In April 2023, we settled a lease dispute which was primarily related to lease incentives associated with leasehold improvements in the form of a tenant allowance and received $11.3 million.

 

Investor Contact:
Mike Chang
[email protected]

Media Contact:
Adam Simons
[email protected]