ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO |
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par value $0.001 per share |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
☒ | Small reporting company | |||||
Emerging growth company |
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• |
The impact of the COVID-19 pandemic on the global economy, our customers, employees and business; |
• |
We may experience fluctuations in our operating results, which could make our future operating results difficult to predict; |
• |
If we fail to innovate and make the right investment decisions in our product offerings and platform, we may not attract and retain customers and our revenue and results of operations may decline; |
• |
Our success and revenue growth depends on our ability to add and retain scaled customers, which we define as customers from which we have generated trailing-12-month |
• |
If we do not manage our growth effectively, the quality of our platform and solutions may suffer and our business, results of operations and financial condition may be adversely affected; |
• |
Our business and the effectiveness of our platform depends on our ability to collect and use data online. New consumer tools, regulatory restrictions and potential changes to web browsers and mobile operating systems all threaten our ability to collect such data, which could harm our operating results and financial condition and adversely affect the demand for our products and solutions; |
• |
The standards that private entities and inbox service providers adopt in the future to regulate the use and delivery of email may interfere with the effectiveness of our platform and our ability to conduct business; |
• |
A significant inadvertent disclosure or breach of confidential and/or personal information we process, or a security breach of our or our customers’, suppliers’ or other partners’ computer systems could be detrimental to our business, reputation, financial performance and results of operations; |
• |
Our infrastructure depends on third-party data centers, systems and technologies to operate our business, the disruption of which could adversely affect our business, results of operations and financial condition; and |
• |
Other factors discussed in other sections of this Annual Report on Form 10-K, including the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” |
Item 1. |
Business. |
• | Seamlessly collect and ingest structured and unstructured data into the ZMP; |
• | Quickly and reliably analyze key consumer attributes and signals; |
• | Identify consumer intent by running sophisticated algorithms to analyze data; |
• | Cluster related concepts and prioritize actionable insights to create intent-based graphs; |
• | Create audiences comprised of individuals or affinity-driven clusters scored based on intent; |
• | Personalize content to make experiences more relevant for the consumer and profitable for the enterprises; and |
• | Create channel and content recommendations to optimize marketing performance. |
• | MarketPulse |
• | CustomerPulse |
• | DMAPulse |
• | AudiencePulse |
• | CompetitorPulse |
• | Quality of insights and analytics; |
• | Omnichannel automation; |
• | Real-time scoring and decisioning of data sets; |
• | Utility of data management tools; |
• | Comprehensive systems integration; |
• | Ease and speed of data ingestion and data onboarding; and |
• | Scale and scope of identity and audience data. |
• | Intuitiveness and ease of use; |
• | Comprehensive feature set; |
• | Present workflows and automation; |
• | Rapid deployment; |
• | Flexibility and scalability; |
• | Seamless integration with a customer’s existing technologies; and |
• | Favorable customer ROI and total cost of ownership. |
Item 1A. |
Risk Factors. |
• | The continued impact of COVID-19 on our and our customers’, suppliers’ or other partners’ business could be detrimental to our business, results of operations, financial condition and the price of our stock. |
• | We may experience fluctuations in our operating results, which could make our future operating results difficult to predict. |
• | If we fail to innovate and make the right investment decisions in our product offerings and platform, we may not attract and retain customers and our revenue and results of operations may decline. |
• | Our success and revenue growth depends on our ability to add and retain scaled customers. |
• | If we do not manage our growth effectively, the quality of our platform and solutions may suffer, and our business, results of operations and financial condition may be adversely affected. |
• | Our business and the effectiveness of our platform depends on our ability to collect and use data online. New consumer tools, regulatory restrictions and potential changes to web browsers and mobile operating systems all threaten our ability to collect such data, which could harm our operating results and financial condition and adversely affect the demand for our products and solutions. |
• | The standards that private entities and inbox service providers adopt in the future to regulate the use and delivery of email may interfere with the effectiveness of our platform and our ability to conduct business. |
• | A significant inadvertent disclosure or breach of confidential and/or personal information we process, or a security breach of our or our customers’, suppliers’ or other partners’ computer systems could be detrimental to our business, reputation, financial performance and results of operations. |
• | Our infrastructure depends on third-party data centers, systems and technologies to operate our business, the disruption of which could adversely affect our business, results of operations and financial condition. |
• | strategically invest in the development and enhancement of our platform and data center infrastructure; |
• | improve coordination among our engineering, product, operations and other support organizations; |
• | manage multiple relationships with various partners, customers and other third parties; |
• | manage international operations; |
• | develop our operating, administrative, legal, financial and accounting systems and controls; and |
• | recruit, hire, train and retain personnel, especially those possessing extensive engineering skills and experience in complex technologies and data sciences, of which there is limited supply and increasing demand. |
• | Our usage-based pricing model makes it difficult to forecast revenues from our current customers and future prospects; |
• | our ability to attract scaled customers and retain and increase sales to existing customers; |
• | changes in our pricing policies, the pricing policies of our competitors and the pricing or availability of data or other third-party services; |
• | the seasonal budgeting cycles and internal marketing budgeting and strategic purchasing priorities of our customers; |
• | our ability to continue to develop and offer products and solutions that are superior to those of our competitors; |
• | our ability to develop our existing platform and introduce new solutions on our platform; |
• | our ability to retain and attract top talent; |
• | our ability to anticipate or respond to changes in the competitive landscape, or improvements in the functionality of competing solutions that reduce or eliminate one or more of our competitive advantages; |
• | our ability to maintain and expand our relationships with data centers and strategic third-party technology vendors, who provide floor space, bandwidth, cooling and physical security services on which our platform operates; |
• | our ability to successfully expand our business internationally; |
• | the emergence of significant privacy, data protection, security or other threats, regulations or requirements applicable to our business and shifting views and behaviors of consumers concerning use of data and data privacy; |
• | extraordinary expenses, such as litigation or other dispute-related settlement payments; and |
• | future accounting pronouncements or changes in our accounting policies. |
• | difficulties in integrating the operations, technologies, product or service offerings, administrative systems and personnel of acquired businesses, especially if those businesses operate outside of our core competency or geographies in which we currently operate; |
• | ineffectiveness or incompatibility of acquired technologies or solutions; |
• | potential loss of key employees of the acquired businesses; |
• | inability to maintain key business relationships and reputations of the acquired businesses; |
• | diversion of management attention from other business concerns; |
• | litigation arising from the acquisition or the activities of the acquired businesses, including claims from terminated employees, customers, former stockholders or other third parties and intellectual property disputes; |
• | assumption of contractual obligations that contain terms that are not beneficial to us, require us to license or waive intellectual property rights, or increase our risk of liability; |
• | complications in the integration of acquired businesses or diminished prospects; |
• | failure to generate the expected financial results related to an acquisition on a timely manner or at all; |
• | weak, ineffective, or incomplete data privacy compliance strategies by the acquired company resulting in our inability to use acquired data assets; |
• | failure to accurately forecast the financial or other business impacts of an acquisition; and |
• | implementation or remediation of effective controls, procedures and policies for acquired businesses. |
• | difficulty hiring and retaining engineering and management resources due to intense competition for such resources and resulting wage inflation; |
• | heightened exposure to changes in economic, security and political conditions; |
• | different standards of protection for intellectual property rights and confidentiality protection; |
• | the effects of the COVID-19 pandemic on general health and economic conditions; and |
• | fluctuations in currency exchange rates and tax compliance. |
• | difficulty and costs associated with maintaining effective controls at foreign locations; |
• | adapting our platform and solutions to non-U.S. customer preferences and customs; |
• | difficulties in staffing and managing foreign operations; |
• | difficulties in enforcing our intellectual property rights; |
• | new and different sources of competition; |
• | regulatory and other delays and difficulties in setting up foreign operations; |
• | compliance with anti-bribery laws, such as the U.S. Foreign Corrupt Practices Act and the United Kingdom (“UK”) Anti-Bribery Act 2010, by us, our employees and our business partners; |
• | compliance with export and import control and economic sanctions, laws and regulations, such as those administered by the U.S. Office of Foreign Assets Control; |
• | compliance with foreign data privacy laws, such as the EU ePrivacy Directive, GDPR, United Kingdom data protection laws, and Brazil’s LGPD which could materially diminish our ability to collect data and/or the effectiveness of our platform; |
• | restrictions on the transfers of funds; |
• | currency exchange rate fluctuations and foreign exchange controls; |
• | economic and political instability in some countries; |
• | compliance with the laws of numerous taxing jurisdictions where we conduct business, potential double taxation of our international earnings, and potentially adverse tax consequences due to changes in applicable U.S. and foreign tax laws; and |
• | the complexity and potential adverse consequences of U.S. tax laws as they relate to our international operations. |
• | dispose of or sell our assets; |
• | make material changes in our business or management; |
• | consolidate or merge with other entities; |
• | incur additional indebtedness; |
• | create liens on our assets; |
• | pay dividends; |
• | make investments; |
• | enter into transactions with affiliates; and |
• | pay off or redeem subordinated indebtedness. |
• | a majority of the board of directors consist of independent directors as defined under the rules of the NYSE; |
• | the nominating and governance committee be composed entirely of independent directors with a written charter addressing the committee’s purpose and responsibilities; and |
• | the compensation committee be composed entirely of independent directors with a written charter addressing the committee’s purpose and responsibilities. |
• | permit our board of directors to issue up to 200,000,000 shares of preferred stock, with any rights, preferences and privileges as they may designate; |
• | provide that the authorized number of directors may be changed only by resolution of our board of directors; |
• | provide that our board of directors will be classified into three classes of directors; |
• | limit the ability of stockholders to remove directors to permit removals only “for cause” once Class B common stock ceases to hold more than 50% of all our outstanding common stock; |
• | provide that all vacancies, except as otherwise required by law, be filled by the affirmative vote of a majority of directors then in office, even if less than a quorum; |
• | prohibit stockholder action by written consent, subject to the terms of any series of preferred stock, if the holders of shares of Class B common stock no longer hold at least a majority of the voting power of the outstanding shares of our common stock; |
• | require advance notice for nominations of directors by stockholders and for stockholders to include matters to be considered at our annual meetings; |
• | provide certain limitations on convening special stockholder meetings; |
• | so long as any shares of Class B common stock remain outstanding, require the prior affirmative vote of the holders of a majority of the outstanding shares of Class B common stock, voting as a separate class to consummate a Change of Control Transaction (as defined in our amended and restated certificate of incorporation); |
• | provide that the restrictions set forth in Section 203 of the Delaware General Corporation Law (“DGCL”) shall be applicable to us in the event that no holder of Class B common stock owns shares of our capital stock representing at least fifteen percent (15%) of the voting power of all the then outstanding shares of our capital stock; and |
• | not provide for cumulative voting rights in election of directors. |
• | any derivative action or proceeding brought on our behalf; |
• | any action asserting a claim of breach of a fiduciary duty owed by, or other wrongdoing by, any of our current or former directors, officers, employees or our stockholders; |
• | any action asserting a claim against us arising under the DGCL, our amended and restated certificate of incorporation, or our amended and restated bylaws (as either may be amended from time to time) or as to which the DGCL confers jurisdiction on the Court of Chancery of the State of Delaware; and |
• | any action asserting a claim against us that is governed by the internal-affairs doctrine. |
Item 1B. |
Unresolved Staff Comments. |
Item 2. |
Properties. |
Item 3. |
Legal Proceedings. |
Item 4. |
Mine Safety Disclosures. |
Item 5. |
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. |
Item 6. |
Reserved. |
Item 7. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Customer Tenure |
Number of Scaled Customers |
% of Scaled Customers |
% of Scaled Customer Revenue |
|||||||||
3+ Years |
144 | 40.6 | % | 60.6 | % | |||||||
1-3 Years |
150 | 42.3 | % | 30.2 | % | |||||||
Under 1 Year |
61 | 17.2 | % | 9.2 | % | |||||||
Total |
355 | 100.0 | % | 100.0 | % |
Year ended December 31, |
||||||||
2021 |
2020 |
|||||||
Scaled customers |
355 | 336 |
Year ended December 31, |
||||||||
2021 |
2020 |
|||||||
Scaled customer ARPU |
$ | 1,242,145 | $ | 1,054,194 |
Year ended December 31, |
||||||||||||||||||||||
2022 |
2023 |
2024 |
2025 |
2026 |
Total |
|||||||||||||||||
$264,876 | $ | 154,306 | $ | 82,492 | $ | 34,242 | $ | 4,515 | $ | 540,431 |
Year ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Revenues |
$ |
458,338 |
$ | 368,120 | $ | 306,051 | ||||||
Operating expenses: |
||||||||||||
Cost of revenues (excluding depreciation and amortization) |
174,720 |
148,878 | 110,385 | |||||||||
General and administrative expenses |
189,606 |
70,849 | 73,344 | |||||||||
Selling and marketing expenses |
229,343 |
77,140 | 69,519 | |||||||||
Research and development expenses |
64,474 |
31,772 | 28,685 | |||||||||
Depreciation and amortization |
45,922 |
40,064 | 34,340 | |||||||||
Acquisition- related expenses |
1,953 |
5,402 | 5,916 | |||||||||
Restructuring expenses |
727 |
2,090 | 1,388 | |||||||||
|
|
|
|
|
|
|||||||
Total operating expenses |
$ |
706,745 |
$ | 376,195 | $ | 323,577 | ||||||
Loss from operations |
(248,407) |
(8,075) | (17,526) | |||||||||
Interest expense |
7,033 |
16,257 | 15,491 | |||||||||
Other (income) / expenses |
(279) |
(126) | 239 | |||||||||
Gain on extinguishment of debt |
(10,000) |
— | — | |||||||||
Change in fair value of warrants and derivative liabilities |
5,000 |
28,100 | 4,200 | |||||||||
|
|
|
|
|
|
|||||||
Total other expenses |
$ |
1,754 |
$ | 44,231 | $ | 19,930 | ||||||
Loss before income taxes |
(250,161) |
(52,306) | (37,456) | |||||||||
Income tax (benefit) / provision |
(598) |
$ | 919 | 1,009 | ||||||||
|
|
|
|
|
|
|||||||
Net loss |
$ |
(249,563) |
$ |
(53,225) |
$ |
(38,465) |
||||||
|
|
|
|
|
|
Year Ended December 31, |
Change |
|||||||||||||||
2021 |
2020 |
Amount |
% |
|||||||||||||
Revenues |
$ | 458,338 | $ | 368,120 | $ | 90,218 | 24.5 | % |
Year Ended December 31, |
Change |
|||||||||||||||
2021 |
2020 |
Amount |
% |
|||||||||||||
Cost of revenues (excluding depreciation and amortization) |
$ | 174,720 | $ | 148,878 | $ | 25,842 | 17.4 | % |
Year Ended December 31, |
Change |
|||||||||||||||
2021 |
2020 |
Amount |
% |
|||||||||||||
General and administrative expenses |
$ | 189,606 | $ | 70,849 | $ | 118,757 | 167.6 | % |
Year Ended December 31, |
Change |
|||||||||||||||
2021 |
2020 |
Amount |
% |
|||||||||||||
Selling and marketing expenses |
$ | 229,343 | $ | 77,140 | $ | 152,203 | 197.3 | % |
Year Ended December 31, |
Change |
|||||||||||||||
2021 |
2020 |
Amount |
% |
|||||||||||||
Research and development expenses |
$ | 64,474 | $ | 31,772 | $ | 32,702 | 102.9 | % |
Year Ended December 31, |
Change |
|||||||||||||||
2021 |
2020 |
Amount |
% |
|||||||||||||
Depreciation and amortization |
$ | 45,922 | $ | 40,064 | $ | 5,858 | 14.6 | % |
Year Ended December 31, |
Change |
|||||||||||||||
2021 |
2020 |
Amount |
% |
|||||||||||||
Acquisition-related expenses |
$ | 1,953 | $ | 5,402 | $ | (3,449 | ) | (63.8 | )% |
Year Ended December 31, |
Change |
|||||||||||||||
2021 |
2020 |
Amount |
% |
|||||||||||||
Restructuring expenses |
$ | 727 | $ | 2,090 | $ | (1,363 | ) | (65.2 | )% |
Year Ended December 31, |
Change |
|||||||||||||||
2021 |
2020 |
Amount |
% |
|||||||||||||
Interest expense |
$ | 7,033 | $ | 16,257 | $ | (9,224 | ) | (56.7 | )% |
Year Ended December 31, |
Change |
|||||||||||||||
2021 |
2020 |
Amount |
% |
|||||||||||||
Other income |
$ | (279 | ) | $ | (126 | ) | $ | (153 | ) | 121.4 | % |
Year Ended December 31, |
Change |
|||||||||||||||
2021 |
2020 |
Amount |
% |
|||||||||||||
Change in fair value of warrants and derivative liabilities |
$ | 5,000 | $ | 28,100 | $ | (23,100 | ) | (82.2 | )% |
Year Ended December 31, |
Change |
|||||||||||||||
2021 |
2020 |
Amount |
% |
|||||||||||||
Income tax (benefit) / provision |
$ | (598 | ) | $ | 919 | $ | (1,517 | ) | (165.1 | )% |
Year Ended December 31, |
Change |
|||||||||||||||
2020 |
2019 |
Amount |
% |
|||||||||||||
Revenues |
$ | 368,120 | $ | 306,051 | $ | 62,069 | 20.3 | % |
Year Ended December 31, |
Change |
|||||||||||||||
2020 |
2019 |
Amount |
% |
|||||||||||||
Cost of revenues (excluding depreciation and amortization) |
$ | 148,878 | $ | 110,385 | $ | 38,493 | 34.9 | % |
Year Ended December 31, |
Change |
|||||||||||||||
2020 |
2019 |
Amount |
% |
|||||||||||||
General and administrative expenses |
$ | 70,849 | $ | 73,344 | $ | (2,495 | ) | (3.4 | )% |
Year Ended December 31, |
Change |
|||||||||||||||
2020 |
2019 |
Amount |
% |
|||||||||||||
Selling and marketing expenses |
$ | 77,140 | $ | 69,519 | $ | 7,621 | 11.0 | % |
Year Ended December 31, |
Change |
|||||||||||||||
2020 |
2019 |
Amount |
% |
|||||||||||||
Research and development expenses |
$ | 31,772 | $ | 28,685 | $ | 3,087 | 10.8 | % |
Year Ended December 31, |
Change |
|||||||||||||||
2020 |
2019 |
Amount |
% |
|||||||||||||
Depreciation and amortization |
$ | 40,064 | $ | 34,340 | $ | 5,724 | 16.7 | % |
Year Ended December 31, |
Change |
|||||||||||||||
2020 |
2019 |
Amount |
% |
|||||||||||||
Acquisition-related expenses |
$ | 5,402 | $ | 5,916 | $ | (514 | ) | (8.7 | )% |
Year Ended December 31, |
Change |
|||||||||||||||
2020 |
2019 |
Amount |
% |
|||||||||||||
Restructuring expenses |
$ | 2,090 | $ | 1,388 | $ | 702 | 50.6 | % |
Year Ended December 31, |
Change |
|||||||||||||||
2020 |
2019 |
Amount |
% |
|||||||||||||
Interest expense |
$ | 16,257 | $ | 15,491 | $ | 766 | 4.9 | % |
Year Ended December 31, |
Change |
|||||||||||||||
2020 |
2019 |
Amount |
% |
|||||||||||||
Other (income) / expenses |
$ | (126 | ) | $ | 239 | $ | (365 | ) | NM |
Year Ended December 31, |
Change |
|||||||||||||||
2020 |
2019 |
Amount |
% |
|||||||||||||
Change in fair value of warrants and derivative liabilities |
$ | 28,100 | $ | 4,200 | $ | 23,900 | 569.0 | % |
Year Ended December 31, |
Change |
|||||||||||||||
2020 |
2019 |
Amount |
% |
|||||||||||||
Income tax provision |
$ | 919 | $ | 1,009 | $ | (90 | ) | (8.9 | )% |
Year ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Net loss |
$ |
(249,563) |
$ |
(53,225) |
$ |
(38,465) |
||||||
Net loss margin |
(54.4) |
% |
(14.5) |
% |
(12.6) |
% | ||||||
Add back: |
||||||||||||
Depreciation and amortization |
45,922 | 40,064 | 34,340 | |||||||||
Restructuring expenses |
727 | 2,090 | 1,388 | |||||||||
Acquisition-related expenses |
1,953 | 5,402 | 5,916 | |||||||||
Stock-based compensation |
259,159 | 105 | 216 | |||||||||
IPO related expenses |
2,705 | — | — | |||||||||
Gain on extinguishment of debt |
(10,000) | — | — | |||||||||
Dispute settlement expense |
1,196 | — | — | |||||||||
Other (income) / expenses |
(279) | (126) | 239 | |||||||||
Change in fair value of warrants and derivative liabilities |
5,000 | 28,100 | 4,200 | |||||||||
Interest expense |
7,033 | 16,257 | 15,491 | |||||||||
Income tax (benefit) / provision |
(598) | 919 | 1,009 | |||||||||
|
|
|
|
|
|
|||||||
Adjusted EBITDA |
$ |
63,255 |
$ |
39,586 |
$ |
24,334 |
||||||
|
|
|
|
|
|
|||||||
Adjusted EBITDA margin% |
13.8 |
% |
10.8 |
% |
7.9 |
% |
For year ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Net cash provided by / (used for): |
||||||||||||
Cash provided by operating activities |
$ | 44,292 | $ | 35,539 | $ | 30,599 | ||||||
Cash used for investing activities |
(46,849) | (25,207) | (61,660) | |||||||||
Cash provided by financing activities |
55,732 | 2,783 | 28,028 | |||||||||
Effect of exchange rate changes on cash and cash equivalents |
(41) | (208) | (75) | |||||||||
|
|
|
|
|
|
|||||||
Net increase / (decrease) in cash and cash equivalents, including restricted cash |
$ |
53,134 |
$ |
12,907 |
$ |
(3,108) |
||||||
|
|
|
|
|
|
Total |
<1 Year |
1-3 Years |
3-5 Years |
> 5 Years |
||||||||||||||||
Long-term borrowings |
$ | 203,467 | $ | 10,394 | $ | 31,340 | $ | 161,733 | $ | — | ||||||||||
Operating leases |
14,118 | 3,023 | 4,246 | 3,386 | 3,463 | |||||||||||||||
Purchase obligations |
68,682 | 19,607 | 41,950 | 7,125 | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total contractual obligations |
$ |
286,267 |
$ |
33,024 |
$ |
77,536 |
$ |
172,244 |
$ |
3,463 |
||||||||||
|
|
|
|
|
|
|
|
|
|
Quarter ended |
||||||||||||||||||||||||||||||||
March 31, 2020 |
June 30, 2020 |
September 30, 2020 |
December 31, 2020 |
March 31, 2021 |
June 30, 2021 |
September 30, 2021 |
December 31, 2021 |
|||||||||||||||||||||||||
Revenues |
$ | 81,260 | $ | 77,130 | $ | 95,284 | $ | 114,446 | $ | 101,463 | $ | 106,896 | $ | 115,133 | $ | 134,846 | ||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||||||||||
Cost of revenues (excluding depreciation and amortization) |
30,529 | 29,296 | 40,705 | 48,348 | 38,972 | 42,212 | 44,525 | 49,011 | ||||||||||||||||||||||||
General and administrative expenses |
18,793 | 17,327 | 17,150 | 17,579 | 19,132 | 65,907 | 50,643 | 53,924 | ||||||||||||||||||||||||
Selling and marketing expenses |
19,248 | 16,842 | 18,269 | 22,781 | 20,570 | 82,845 | 60,537 | 65,391 | ||||||||||||||||||||||||
Research and development expenses |
8,723 | 8,161 | 6,905 | 7,983 | 9,784 | 26,503 | 13,998 | 14,189 | ||||||||||||||||||||||||
Depreciation and amortization |
9,541 | 10,497 | 10,133 | 9,893 | 10,117 | 11,235 | 11,783 | 12,787 | ||||||||||||||||||||||||
Acquisition-related expenses |
1,935 | 1,156 | 1,230 | 1,081 | 707 | 329 | 480 | 437 | ||||||||||||||||||||||||
Restructuring expenses |
1,193 | 498 | 259 | 140 | 287 | 150 | 30 | 260 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total operating expenses |
$ |
89,962 |
$ |
83,777 |
$ |
94,651 |
$ |
107,805 |
$ |
99,569 |
$ |
229,181 |
$ |
181,996 |
$ |
195,999 |
||||||||||||||||
(Loss) / income from operations |
(8,702) | (6,647) | 633 | 6,641 | 1,894 | (122,285) | (66,863) | (61,153) | ||||||||||||||||||||||||
Interest expense |
4,343 | 4,382 | 3,823 | 3,709 | 2,961 | 1,402 | 1,342 | 1,328 | ||||||||||||||||||||||||
Other expenses / (income) |
113 | (471) | (188) | 420 | 1,284 | (749) | 496 | (1,310) | ||||||||||||||||||||||||
Gain on extinguishment of debt |
— | — | — | — | — | (10,000) | — | — | ||||||||||||||||||||||||
Change in fair value of warrants and derivative liabilities |
2,600 | 4,100 | 9,700 | 11,700 | 23,600 | (18,600) | — | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total other expenses / (income) |
$ | 7,056 | $ | 8,011 | $ | 13,335 | $ | 15,829 | $ | 27,845 | $ | (27,947) | $ | 1,838 | $ | 18 | ||||||||||||||||
Loss before income taxes |
(15,758) | (14,658) | (12,702) | (9,188) | (25,951) | (94,338) | (68,701) | (61,171) | ||||||||||||||||||||||||
Income tax provision / (benefit) |
622 | 396 | 301 | (400) | (1,577) | 584 | 428 | (33) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net loss |
$ |
(16,380) |
$ |
(15,054) |
$ |
(13,003) |
$ |
(8,788) |
$ |
(24,374) |
$ |
(94,922) |
$ |
(69,129) |
$ |
(61,138) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Other comprehensive (loss) / income: |
||||||||||||||||||||||||||||||||
Foreign currency translation adjustment |
(741) | (47) | 272 | 326 | 54 | (129) | (77) | 88 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total comprehensive loss |
$ |
(17,121) |
$ |
(15,101) |
$ |
(12,731) |
$ |
(8,462) |
$ |
(24,320) |
$ |
(95,051) |
$ |
(69,206) |
$ |
(61,050) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Basic loss per share |
$ |
(0.61) |
$ |
(0.58) |
$ |
(0.51) |
$ |
(0.53) |
$ |
(0.86) |
$ |
(1.92) |
$ |
(0.53) |
$ |
(0.46) |
||||||||||||||||
Diluted loss per share |
$ |
(0.61) |
$ |
(0.58) |
$ |
(0.51) |
$ |
(0.53) |
$ |
(0.86) |
$ |
(1.92) |
$ |
(0.53) |
$ |
(0.46) |
||||||||||||||||
Weighted average number of shares used to compute net loss per share |
||||||||||||||||||||||||||||||||
Basic |
32,607,406 |
32,362,610 |
32,607,357 |
32,589,397 |
32,846,991 |
51,202,335 |
129,731,980 |
133,697,870 |
||||||||||||||||||||||||
Diluted |
32,607,406 |
32,362,610 |
32,607,357 |
32,589,397 |
32,846,991 |
51,202,335 |
129,731,980 |
133,697,870 |
Quarter ended |
||||||||||||||||||||||||||||||||
March 31, 2020 |
June 30, 2020 |
September 30, 2020 |
December 31, 2020 |
March 31, 2021 |
June 30, 2021 |
September 30, 2021 |
December 31, 2021 |
|||||||||||||||||||||||||
Cost of revenues (excluding depreciation and amortization) |
— |
— |
— |
— |
— |
266 |
1,183 |
1,140 |
||||||||||||||||||||||||
General and administrative expenses |
26 |
27 |
26 |
26 |
— |
42,625 |
28,243 |
29,292 |
||||||||||||||||||||||||
Selling and marketing expenses |
— |
— |
— |
— |
— |
59,512 |
35,114 |
34,951 |
||||||||||||||||||||||||
Research and development expenses |
— |
— |
— |
— |
— |
16,867 |
4,803 |
5,163 |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
26 |
27 |
26 |
26 |
— |
119,270 |
69,343 |
70,546 |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
• |
Risk-free interest rate: The risk-free interest rate is based on the U.S. Treasury rates at the time of grant that approximate the expected term of the option. |
• |
Expected dividend yield: We have never declared or paid any dividends and do not expect to pay any dividends in the foreseeable future. |
• |
Expected term: We estimate the expected term using the “simplified method” as we do not have sufficient historical exercise data. |
• |
Expected volatility: Expected volatility is estimated by considering the historical volatility of similar publicly-traded companies for which share price information is available. |
Item 7A. |
Quantitative and Qualitative Disclosures About Market Risk. |
Item 8. |
Financial Statements and Supplementary Data . |
Page |
||||
61 |
||||
62 |
||||
63 |
||||
64 |
||||
65 |
||||
66 |
As of December 31, |
||||||||
2021 |
2020 |
|||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
$ | ||||||
Accounts receivable, net of allowance of $ |
||||||||
Prepaid expenses |
||||||||
Other current assets |
||||||||
|
|
|
|
|||||
Total current assets |
||||||||
|
|
|
|
|||||
Non-current assets: |
||||||||
Property and equipment, net |
||||||||
Website and software development costs, net |
||||||||
Intangible assets, net |
||||||||
Goodwill |
||||||||
Deferred tax assets, net |
||||||||
Other non-current assets |
||||||||
|
|
|
|
|||||
Total non-current assets |
||||||||
|
|
|
|
|||||
Total assets |
$ |
$ | ||||||
|
|
|
|
|||||
Liabilities, Mezzanine Equity and Stockholders’ Equity / (Deficit) |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ |
$ | ||||||
Accrued expenses |
||||||||
Acquisition-related liabilities (current) |
||||||||
Deferred revenue |
||||||||
Other current liabilities |
||||||||
|
|
|
|
|||||
Total current liabilities |
||||||||
|
|
|
|
|||||
Non-current liabilities: |
||||||||
Long-term borrowings |
||||||||
Acquisition-related liabilities (non-current) |
||||||||
Warrants and derivative liabilities |
— |
|||||||
Other non-current liabilities |
||||||||
|
|
|
|
|||||
Total non-current liabilities |
||||||||
|
|
|
|
|||||
Total liabilities |
||||||||
|
|
|
|
|||||
Commitments and contingencies (See Note 12) |
||||||||
Mezzanine equity: |
||||||||
Redeemable convertible preferred stock $ |
— |
|||||||
Stockholders’ equity / (deficit): |
||||||||
Series A common stock $ |
— |
|||||||
Series B common stock $ |
— |
|||||||
Class A common stock $ |
— | |||||||
Class B common stock $ |
— |
|||||||
Additional paid-in capital |
||||||||
Accumulated deficit |
( |
( |
||||||
Accumulated other comprehensive loss |
( |
( |
||||||
|
|
|
|
|||||
Total stockholders’ equity / (deficit) |
( |
|||||||
|
|
|
|
|||||
Total liabilities, mezzanine equity and stockholders’ equity / (deficit) |
$ |
$ |
||||||
|
|
|
|
Year ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Revenues |
$ |
$ | $ | |||||||||
Operating expenses: |
||||||||||||
Cost of revenues (excluding depreciation and amortization) |
||||||||||||
General and administrative expenses |
||||||||||||
Selling and marketing expenses |
||||||||||||
Research and development expenses |
||||||||||||
Depreciation and amortization |
||||||||||||
Acquisition-related expenses |
||||||||||||
Restructuring expenses |
||||||||||||
|
|
|
|
|
|
|||||||
Total operating expenses |
$ |
$ | $ | |||||||||
Loss from operations |
( |
( |
( |
|||||||||
Interest expense |
||||||||||||
Other (income) / expenses |
( |
( |
||||||||||
Gain on extinguishment of debt |
( |
— | — | |||||||||
Change in fair value of warrants and derivative liabilities |
||||||||||||
|
|
|
|
|
|
|||||||
Total other expenses |
$ |
$ | $ | |||||||||
Loss before income taxes |
( |
( |
( |
|||||||||
Income tax (benefit) / provision |
( |
|||||||||||
|
|
|
|
|
|
|||||||
Net loss |
$ |
( |
$ |
( |
$ |
( |
||||||
|
|
|
|
|
|
|||||||
Other comprehensive loss: |
||||||||||||
Foreign currency translation adjustment |
( |
( |
( |
|||||||||
|
|
|
|
|
|
|||||||
Total comprehensive loss |
$ |
( |
$ |
( |
$ |
( |
||||||
|
|
|
|
|
|
|||||||
Net loss per share |
||||||||||||
Net loss |
$ | ( |
$ | ( |
$ | ( |
||||||
Cumulative redeemable convertible preferred stock dividends |
||||||||||||
Net loss available to common stockholders |
$ |
( |
$ |
( |
$ |
( |
||||||
Basic loss per share |
$ | ( |
$ | ( |
$ | ( |
||||||
Diluted loss per share |
$ | ( |
$ | ( |
$ | ( |
||||||
Weighted average number of shares used to compute net loss per share |
||||||||||||
Basic |
||||||||||||
Diluted |
The | Company recorded total stock-based compensation as follows: |
Year ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Cost of revenues (excluding depreciation and amortization) |
$ |
$ | — | $ | ||||||||
General and administrative expenses |
||||||||||||
Selling and marketing expenses |
— | |||||||||||
Research and development expenses |
— | |||||||||||
|
|
|
|
|
|
|||||||
Total |
$ |
$ |
$ |
|||||||||
|
|
|
|
|
|
Redeemable Convertible Preferred Stock |
Series A common stock |
Series B common stock |
Class A common stock |
Class B common stock |
Additional Paid-in Capital |
Accumulated Deficit |
Accumulated Other Comprehensive Loss |
Total |
||||||||||||||||||||||||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2019 |
$ |
$ |
$ |
— |
— |
— |
— |
$ |
( |
$ |
( |
$ |
( |
$ |
( |
|||||||||||||||||||||||||||||||||||||||||
Adjustments for warrants as a result of adoption of ASU 2017-11 |
— | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Shares issued with connection with acquisitions |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock grants |
— | — | — | — | — | — | — | — | ( |
— | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Restricted stock forfeitures |
— | — |
( |
( |
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation |
— | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Warrant and options exercised |
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment |
— | — | — | — | — | — | — | — | — | — | — | — | ( |
( |
||||||||||||||||||||||||||||||||||||||||||
Net loss |
— | — |
— | — | — | — | — | — | — | — | — | ( |
— | ( |
||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Balance as of December 31, 2019 |
$ |
$ |
$ |
— |
$ |
— |
— |
$ |
— |
$ |
$ |
( |
$ |
( |
$ |
( |
||||||||||||||||||||||||||||||||||||||||
Shares issued in connection with an agreement |
— | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Restricted stock grants |
— | — | — | — | — | — | — | — | ( |
— | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Restricted stock forfeitures |
— | — | ( |
( |
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation |
— | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment |
— | — | — | — | — | — | — | — | — | — | — | — | ( |
( |
||||||||||||||||||||||||||||||||||||||||||
Net loss |
— | — | — | — | — | — | — | — | — | — | — | ( |
— | ( |
||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Balance as of December 31, 2020 |
$ |
$ |
$ |
— |
$ |
— |
— |
$ |
— |
$ |
$ |
( |
$ |
( |
$ |
( |
||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Conversion of Seies A and Series B common stock into Class A and Class B common stock, respectively |
— | — | ( |
( |
( |
( |
— | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Conversion of redeemable convertible preferred stock to common stock |
( |
( |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Warrants and options exercised |
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Shares issued in connection with the Initial Public Offering, net of issuance cost |
— | — | — |
— |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Shares repurchased |
— | — | — |
— |
— | — | ( |
( |
( |
( |
( |
— | — | ( |
||||||||||||||||||||||||||||||||||||||||||
Restricted stock cancelation |
— | — | ( |
( |
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Shares issued in connection with certain agreements |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock grants |
— | — | — | — | ( |
— | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock forfeitures |
— | — | ( |
( |
— | — | ( |
( |
— | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Common shares cancelation |
— | — | — | — | — | — | ( |
— | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Restricted stock units vesting |
— | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Shares issued in connection with employee stock purchase plan |
— | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation |
— | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment |
— | — | — | — | — | — | — | — | — | — | — | — | ( |
( |
||||||||||||||||||||||||||||||||||||||||||
Net loss |
— | — | — |
— |
— |
— |
— |
— |
— |
— |
— |
( |
— |
( |
||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Balance as of December 31, 2021 |
— |
$ |
— |
— |
$ |
— |
— |
$ |
— |
$ |
$ |
$ |
$ |
( |
$ |
( |
$ |
|||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Cash flows from operating activities: |
||||||||||||
Net loss |
$ |
( |
$ | ( |
$ | ( |
||||||
Adjustments to reconcile net loss to net cash provided by operating activities: |
||||||||||||
Depreciation and amortization |
||||||||||||
Stock-based compensation |
||||||||||||
Gain on extinguishment of debt |
( |
— | — | |||||||||
Deferred income taxes |
( |
( |
( |
|||||||||
Change in fair value of warrant and derivative liabilities |
||||||||||||
Others, net |
||||||||||||
Change in non-cash working capital (net of acquisitions): |
||||||||||||
Accounts receivable |
( |
|||||||||||
Prepaid expenses |
( |
( |
( |
|||||||||
Other current assets |
( |
|||||||||||
Other non-current assets |
( |
|||||||||||
Deferred revenue |
( |
|||||||||||
Accounts payable |
( |
|||||||||||
Accrued expenses and other current liabilities |
( |
( |
||||||||||
Other non-current liabilities |
( |
|||||||||||
|
|
|
|
|
|
|||||||
Net cash provided by operating activities |
||||||||||||
|
|
|
|
|
|
|||||||
Cash flows from investing activities: |
||||||||||||
Capital expenditures |
( |
( |
( |
|||||||||
Website and software development costs |
( |
( |
( |
|||||||||
Business and asset acquisitions, net of cash acquired |
( |
— | ( |
|||||||||
|
|
|
|
|
|
|||||||
Net cash used for investing activities |
( |
( |
( |
|||||||||
|
|
|
|
|
|
|||||||
Cash flows from financing activities: |
||||||||||||
Cash paid for acquisition-related liabilities |
( |
( |
( |
|||||||||
Proceeds from pay-check protection program loan |
— |
— |
||||||||||
Proceeds from term loan, net of issuance costs |
— | |||||||||||
Proceeds from initial public offering, net of issuance cost |
— | — | ||||||||||
Repurchase of restricted stock |
( |
— | — | |||||||||
Proceeds from employees’ stock purchase plan |
— |
— | ||||||||||
Exercise of warrants and options |
— | — | ||||||||||
Proceeds from credit lines |
— |
— | ||||||||||
Repayments against the credit facilities |
( |
( |
( |
|||||||||
|
|
|
|
|
|
|||||||
Net cash provided by financing activities |
||||||||||||
|
|
|
|
|
|
|||||||
Effect of exchange rate changes on cash and cash equivalents |
( |
( |
( |
|||||||||
|
|
|
|
|
|
|||||||
Net increase / (decrease) in cash and cash equivalents, including restricted cash |
( |
|||||||||||
|
|
|
|
|
|
|||||||
Cash and cash equivalents and restricted cash, beginning of period |
||||||||||||
|
|
|
|
|
|
|||||||
Cash and cash equivalents and restricted cash, end of period |
$ |
$ | $ | |||||||||
|
|
|
|
|
|
|||||||
Supplemental cash flow disclosures including non-cash activities: |
||||||||||||
Cash paid for interest |
$ |
$ | $ | |||||||||
Cash paid for income taxes, net |
$ |
$ | $ | |||||||||
Liability established in connection with acquisitions |
$ |
$ | — | $ | ||||||||
Capitalized stock-based compensation as website and software development costs |
$ |
$ | — | $ | — | |||||||
Shares issued in connection with acquisitions and other agreements |
$ |
$ | $ | |||||||||
Dividends on redeemable convertible preferred stock settled in Company’s equity |
$ |
$ | — | $ | — | |||||||
Non-cash settlement of warrants and derivative liabilities |
$ |
$ | — | $ | — | |||||||
Non-cash consideration for website and software development costs |
$ |
$ | $ |
(a) |
Nature of Business |
(b) |
Initial Public Offering (“IPO”) |
(c) |
Reorganization Transactions |
• | As per the amended and restated certificate of incorporation, the authorized capital stock consists of |
• | the conversion of B-1 preferred stock, Series B-2 preferred stock, Series C preferred stock, Series E preferred stock, Series E-1 preferred stock, Series F preferred |
stock, Series F-1 preferred stock, Series F-2 preferred stock, Series F-3 preferred stock and Series F-4 preferred stock into |
• | warrants (the “Warrants Exercise”); |
• | the reclassification of |
• | the exchange of Co-Founder and Chief Executive Officer and his affiliates for an equivalent number of shares of Class B common stock, which went into effect upon the filing and effectiveness of our amended and restated certificate of incorporation pursuant to the terms of the exchange agreement entered into between the Co-Founder and Chief Executive Officer and his affiliates and us (the “Class B Exchange”); and |
• | the repurchase of an aggregate of |
(a) |
Principles of consolidation: |
(b) |
Emerging Growth Company Status: |
(c) |
Use of estimates: |
(d) |
Net loss per share attributable to common stockholders: |
(e) |
Revenue recognition: |
Contract |
assets and liabilities |
Practical |
expedients and exemptions |
Significant |
judgments |
Remaining |
Performance Obligations |
Disaggregation |
of revenues from contract with customers |
Year ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Direct Platform Revenue |
% | % | % | |||||||||
Integrated Platform Revenue |
% | % | % |
(f) |
Operating expenses: |
(g) |
Cash, cash equivalents and restricted cash: |
(h) |
Accounts receivable and allowance for doubtful accounts: |
Balance as of January 1, 2020 |
$ |
|||
Bad debt expense |
||||
Acquisition-related provisions |
||||
Write offs |
( |
|||
|
|
|||
Balance as of December 31, 2020 |
$ |
|||
Bad debt expense |
||||
Write offs |
( |
|||
|
|
|||
Balance as of December 31, 2021 |
$ |
|||
|
|
(i) |
Property and equipment, net: |
Estimated Useful Life (Years) | ||
Computer equipment |
||
Office equipment and furniture |
||
Purchased software |
||
Leasehold improvements |
lease term |
(j) |
Website and software development costs, net: |
(k) |
Intangible assets, net: |
Estimated Useful Life (Years) |
||||
Tradenames |
||||
Data supply relationships |
||||
Completed technologies |
||||
Customer relationships |
(l) |
Goodwill: |
(m) |
Income taxes: |
(n) |
Foreign currency translations: |
(o) |
Financial instruments: |
(p) |
Redeemable convertible preferred stock: |
(q) |
Warrants and derivative liabilities: |
(r) |
Stock-based compensation and other stock-based payments: |
(s) |
Segments: |
Year ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
US |
$ | $ | $ | |||||||||
International |
||||||||||||
|
|
|
|
|
|
|||||||
Total revenues |
$ |
$ |
$ |
|||||||||
|
|
|
|
|
|
Year ended December 21, |
||||||||
2021 |
2020 |
|||||||
US |
$ | $ | ||||||
International |
||||||||
|
|
|
|
|||||
Total long-lived assets |
$ |
$ |
||||||
|
|
|
|
December 31, 2021 |
December 31, 2020 |
|||||||
Computer equipment and purchased software |
$ | $ | ||||||
Office equipment and furniture |
||||||||
Leasehold improvements |
||||||||
|
|
|
|
|||||
Property and equipment – gross |
||||||||
Less: Accumulated depreciation |
( |
( |
||||||
|
|
|
|
|||||
Property and equipment, net |
$ |
$ |
||||||
|
|
|
|
December 31, 2021 |
December 31, 2020 |
|||||||
Website and software development costs |
$ | $ | ||||||
Less: Accumulated amortization |
( |
( |
||||||
|
|
|
|
|||||
Website and software development costs, net |
$ |
$ | ||||||
|
|
|
|
December 31, 2021 |
December 31, 2020 |
|||||||||||||||||||||||
Gross value |
Accumulated amortization |
Net Value |
Gross value |
Accumulated amortization |
Net Value |
|||||||||||||||||||
Data supply relationships |
$ | $ | $ | $ |
— |
$ |
— |
$ |
— |
|||||||||||||||
Tradenames |
||||||||||||||||||||||||
Completed technologies |
||||||||||||||||||||||||
Customer relationships |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total intangible assets |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Year ending December 31, |
||||
2022 |
$ | |||
2023 |
||||
2024 |
||||
2025 |
||||
2026 |
||||
2027 and thereafter |
||||
|
|
|||
Total |
$ |
|||
|
|
Balance as of January 1, 2020 |
$ |
|||
Adjustment of IgnitionOne |
( |
|||
Foreign currency translation |
||||
|
|
|||
Balance as of December 31, 2020 |
$ |
|||
Acquisition of Kinetic |
||||
Acquisition of Vital |
||||
Acquisition of Apptness |
||||
Foreign currency translation |
( |
|||
|
|
|||
Balance as of December 31, 2021 |
$ |
|||
|
|
(a) |
Kinetic Data Solutions, LLC (“Kinetic”): |
(b) |
Vital Digital, Corp (“Vital”): |
(c) |
Apptness Media Group, LLC (“Apptness”): |
eBay CRM |
Disqus |
Sizmek |
PlaceIQ |
IgnitionOne |
Unsubcentral |
Kinetic |
Vital |
Apptness |
Total |
|||||||||||||||||||||||||||||||
Balance as of January 1, 2020 |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
— |
$ |
— |
$ |
— |
$ |
|||||||||||||||||||||||||||
Payments made during the year |
— | — | — | ( |
— | ( |
— | — | — | ( |
||||||||||||||||||||||||||||||
Change in fair value of earn-out |
— | ( |
( |
— | — | — | — | — | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance as of December 31, 2020 |
$ |
$ |
— |
$ |
$ |
$ |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
|||||||||||||||||||||||||
Additions |
— |
— | — | — | — | — | ||||||||||||||||||||||||||||||||||
Settlement during the year |
— |
— | ( |
— | — | — | — | — | — | ( |
||||||||||||||||||||||||||||||
Payments made during the year |
( |
— | ( |
— |
— |
— |
— |
— |
( |
|||||||||||||||||||||||||||||||
Change in fair value of earn-out |
— | ( |
( |
— |
— |
— |
— |
( |
( |
|||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance as of December 31, 2021 |
$ |
$ |
— |
$ |
$ |
— |
$ |
$ |
— |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
December 31, 2020 |
|||||||
Accrued expenses |
$ |
$ | ||||||
Payroll related liabilities |
||||||||
Others |
||||||||
|
|
|
|
|||||
Accrued expenses |
$ |
$ | ||||||
|
|
|
|
December 31, 2021 |
December 31, 2020 |
|||||||
Credit facility |
$ |
$ | ||||||
Loan under pay-check protection program |
— |
|||||||
Revolving loan |
— |
|||||||
|
|
|
|
|||||
Total borrowings |
||||||||
Less: |
||||||||
Unamortized discount on debt |
— |
( |
||||||
Unamortized deferred financing cost |
( |
( |
||||||
|
|
|
|
|||||
Long-term borrowings |
$ |
$ |
||||||
|
|
|
|
Year ended December 31, |
||||
2022 |
$ | |||
2023 |
||||
2024 |
||||
2025 |
||||
2026 |
||||
|
|
|||
Total* |
$ |
|||
|
|
* | Includes $ |
Year ended December 31, |
||||
2022 |
$ | |||
2023 |
||||
2024 |
||||
2025 |
||||
2026 |
||||
2027 and thereafter |
||||
|
|
|||
Total |
$ |
|||
|
|
Year ended December 31, |
||||
2022 |
$ | |||
2023 |
||||
2024 |
||||
2025 |
||||
2026 |
||||
2027 and thereafter |
||||
|
|
|||
Total |
$ |
|||
|
|
a) | For the first category of holders, terms of the modification provide the holders an option to tender up to buy-back program for a cash payout on the effective date of the IPO, with the remaining percentage of the awards subject to future vesting beginning at the end of the first quarter following the anniversary of the IPO and extending for a period of -year |
b) | For the second category of holders, terms of the modification provide for vesting upon the effective date of the IPO as follows: (i) |
c) | For the third category of holders, terms of the modification provide for vesting to begin at the end of the first quarter following the anniversary of the IPO, with such shares vesting in equal quarterly installments at the end of each quarter until the -year anniversary of the date of the IPO. |
Shares |
Weighted-Average Grant date fair value |
|||||||
Non-vested as of January 1, 2020 |
$ |
|||||||
Granted |
||||||||
Vested |
— | — | ||||||
Forfeited |
( |
|||||||
|
|
|
|
|||||
Non-vested as of December 31, 2020 |
$ |
|||||||
Granted |
||||||||
Vested |
( |
|||||||
Forfeited |
( |
|||||||
Canceled |
( |
|||||||
Modified |
( |
|||||||
Modified and reissued |
||||||||
|
|
|
|
|||||
Non-vested as of December 31, 2021 |
$ |
|||||||
|
|
|
|
(1) | During the year ended December 31, 2021, the Company granted anniversary of the IPO and the remainder vesting in equal quarterly installments thereafter through the 4th anniversary of the grant date. The Company also converted -year s equity / (deficit) for the year ended December 31, 2021. toc holders’k |
(2) | During the year ended December 31, 2021, the forfeited. |
(3) | During the year ended December 31, 2021, the Company also canceled ). |
Number of options |
Weighted average exercise price |
Weighted average remaining contractual life (years) |
Aggregate intrinsic value |
|||||||||||||
Outstanding options as of December 31, 2019 |
$ | |
$ |
— |
| |||||||||||
Vested |
( |
— | |
|
— |
| ||||||||||
Forfeited |
( |
— | |
|
— |
| ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||
Outstanding options as of December 31, 2020 |
$ |
|
$ |
|
| |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||
Exercised |
( |
— | |
|
— |
| ||||||||||
Forfeited |
( |
— | |
|
— |
| ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||
Outstanding options as of December 31, 2021 |
$ |
|
|
$ |
| |||||||||||
|
|
|
|
|
|
|
|
|
|
20 Day VWAP of Class A common stock |
Below $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Percentage of target PSUs |
% | % | % | % | % | % |
Year ended December 31, 2021 |
||||
Dividend yield |
||||
Risk free interest rate |
||||
Volatility |
Year ended December 31, 2021 |
||||
Dividend yield |
||||
Risk free interest rate |
||||
Volatility |
• | Equal Status- Except as otherwise provided in the Certificate of Incorporation or required by applicable law, shares of Class A common stock and Class B common stock shall have the same rights, privileges and powers, rank equally (including as to dividends and distributions, and upon any liquidation, dissolution, distribution of assets or winding up of the Company), share ratably and be identical in all respects and as to all matters. |
• | Voting- Except as otherwise required by applicable law, at all meetings of stockholders and on all matters submitted to a vote of stockholders of the Company generally, each holder of Class A common stock, as such, shall have the right to |
• | Dividend Rights- Shares of Class A common stock and Class B common stock shall be treated equally, identically and ratably, on a per share basis, with respect to any dividends as may be declared and paid from time to time by the Board of Directors of the Company. |
• | Liquidation, Dissolution or Winding Up- Subject to the preferential or other rights of any holders of Preferred Stock then outstanding, upon the dissolution, distribution of assets, liquidation or winding up of the Company, whether voluntary or involuntary, holders of Class A common stock and Class B common stock will be entitled to receive ratably all assets of the Company available for distribution to its stockholders unless disparate or different treatment of the shares of each such class with respect to distributions upon any such liquidation, dissolution, distribution of assets or winding up is approved by the affirmative vote of the holders of a majority of the outstanding shares of Class A common stock and Class B common stock, each voting separately as a class. |
Year ended December 31, 2020 |
||||
Stock price |
$ | |||
Exercise price |
$ | |||
Risk-free interest rate |
% | |||
Expected volatility |
% | |||
Time to maturity (in years) |
As of December 31, 2021 |
||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
Assets |
||||||||||||||||
Cash and cash equivalents* |
$ | $ | — | $ | — | $ | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets measured at fair value |
$ |
$ |
— |
$ |
— |
$ |
||||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities |
||||||||||||||||
Acquisition-related liabilities |
$ | — | $ | — | $ | $ | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities measured at fair value |
$ |
— |
$ |
— |
$ |
$ |
||||||||||
|
|
|
|
|
|
|
|
|||||||||
As of December 31, 2020 |
||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
Assets |
||||||||||||||||
Cash and cash equivalents* |
$ | $ | — | $ | — | $ | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets measured at fair value |
$ |
$ |
— |
$ |
— |
$ |
||||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities |
||||||||||||||||
Derivative liability |
$ | — | $ | — | $ | $ | ||||||||||
Warrant liability |
— | — | ||||||||||||||
Acquisition-related liabilities |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities measured at fair value |
$ |
— |
$ |
— |
$ |
$ |
||||||||||
|
|
|
|
|
|
|
|
* | Includes cash invested by the Company in certain money market accounts with a financial institution. |
Warrant liability |
Acquisition- related liabilities |
Derivative Liability |
||||||||||
Balance as of January 1, 2020 |
$ |
$ |
$ |
|||||||||
Payments made during the year |
( |
|||||||||||
Change in fair value |
||||||||||||
|
|
|
|
|
|
|||||||
Balance as of December 31, 2020 |
$ |
$ |
$ |
|||||||||
Additions |
— | — | ||||||||||
Payments made during the year |
— | ( |
— | |||||||||
Settlement during the year |
— | ( |
— | |||||||||
Change in fair value |
( |
|||||||||||
Extinguishment of the warrants and derivative liabilities |
( |
— | ( |
|||||||||
|
|
|
|
|
|
|||||||
Balance as of December 31, 2021 |
$ |
$ |
$ |
|||||||||
|
|
|
|
|
|
Year ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Domestic operations |
$ |
( |
) | $ |
( |
$ |
( |
|||||
Foreign operations |
||||||||||||
|
|
|
|
|
|
|||||||
Loss before income taxes |
$ |
( |
$ |
( |
$ |
( |
||||||
|
|
|
|
|
|
Year ended December 31, |
||||||||
2021 |
2020 |
|||||||
Current |
||||||||
Federal |
$ | $ | ( |
|||||
State and local |
||||||||
Foreign |
||||||||
|
|
|
|
|||||
Total current income taxes |
$ | $ | ||||||
|
|
|
|
|||||
Deferred: |
||||||||
Federal |
$ |
( |
$ |
|||||
State and local |
( |
|||||||
Foreign |
( |
( |
||||||
|
|
|
|
|||||
Total deferred income benefits |
( |
( |
||||||
|
|
|
|
|||||
Income tax (benefit) / provision |
$ |
( |
$ |
|||||
|
|
|
|
Year ended December 31, |
||||||||
2021 |
2020 |
|||||||
Deferred tax assets: |
||||||||
Accounts receivable reserve |
$ | $ | ||||||
Accrued payroll |
||||||||
Net operating loss carry forward |
||||||||
Stock-based compensation |
||||||||
Interest limitation carry forward |
||||||||
Fixed assets |
||||||||
Intangible assets |
||||||||
Capital losses |
||||||||
Accrued expenses and other |
||||||||
|
|
|
|
|||||
$ |
$ |
|||||||
|
|
|
|
Year ended December 31, |
||||||||
2021 |
2020 |
|||||||
Less: Valuation allowance |
( |
) | ( |
) | ||||
Deferred tax assets |
$ | $ | ||||||
Deferred tax liabilities: |
||||||||
Fixed assets |
( |
) | ( |
) | ||||
Deferred state income tax and other |
( |
) | ( |
) | ||||
Deferred tax liabilities: |
( |
) | ( |
) | ||||
Net deferred tax assets |
$ |
$ |
||||||
Balance as of January 1, 2020 |
$ |
( |
) | |
Increase due to current year pre-tax loss |
( |
) | ||
Others |
( |
) | ||
Balance as of December 31, 2020 |
( |
) | ||
Increase due to current year pre-tax loss |
( |
) | ||
Others |
||||
Balance as of December 31, 2021 |
$ |
( |
) | |
December 31, 2021 |
December 31, 2020 |
|||||||
U.S. federal statutory rate |
% | % | ||||||
State income taxes |
% | % | ||||||
Other permanent differences |
( |
)% | ||||||
Non-deductible stock compensation |
( |
)% | ||||||
Non-deductible officer’s compensation |
( |
)% | ||||||
Change in fair value of warrant and derivative liability |
( |
)% | ( |
)% | ||||
Change in valuation allowance |
( |
)% | ( |
)% | ||||
State change in tax rate |
( |
)% | ||||||
Net effect of foreign operations |
( |
)% | ||||||
Other |
% | |||||||
Effective tax rate |
% | ( |
)% | |||||
Balance as of January 1, 2020 |
$ |
|||
Increase in tax positions for current / prior periods |
( |
) | ||
Balance as of December 31, 2020 |
||||
Increase in tax positions for current / prior periods |
( |
) | ||
Balance as of December 31, 2021 |
$ |
|||
Jurisdiction |
Tax Year |
|||
U.S |
||||
Czech Republic |
||||
France |
||||
India |
||||
Mexico |
||||
UK |
Year ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Numerator: |
||||||||||||
Net loss |
$ | ( |
$ | ( |
$ | ( |
||||||
Cumulative redeemable convertible preferred stock dividends |
||||||||||||
Numerator for Basic and Dilutive loss per share – loss available to common stockholders |
$ |
( |
$ |
( |
$ |
( |
||||||
Denominator: |
||||||||||||
Class A common stock |
— | — | ||||||||||
Class B common stock |
— | — | ||||||||||
Series A common stock |
||||||||||||
Series B common stock |
||||||||||||
Warrants |
||||||||||||
Denominator for Basic and Dilutive loss per share – weighted-average common stock |
||||||||||||
Basic loss per share |
$ |
( |
$ | ( |
$ | ( |
||||||
Dilutive loss per share |
$ |
( |
$ | ( |
$ | ( |
Year ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Options |
||||||||||||
Warrants |
— | |||||||||||
Preferred stock |
— | |||||||||||
Restricted stock and restricted stock units |
||||||||||||
Performance stock units |
— |
Year ended December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Change in the fair value of acquisition-related liabilities |
$ |
( |
$ | $ | ||||||||
Loss / (gain) on sale of assets |
( |
( |
||||||||||
Foreign currency translation loss / (gain) |
( |
|||||||||||
Total other (income) / expenses |
$ |
( |
$ |
( |
$ |
|||||||
20 Day VWAP of Class A common stock |
Below $ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||
Percentage of target PSUs |
% |
% |
% |
% |
% |
* |
* |
The percentage of target PSUs earned at $ |
Item 9. |
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. |
Item 9A. |
Control and Procedures . |
• | hiring qualified personnel with expertise in financial reporting aspects which also provided segregation of duties within our internal control procedures to support the accurate reporting of our financial results; |
• | the engagement of third-party advisory firm to assist in the complex accounting matters; |
• | designing and implementing improved processes and internal controls, including ongoing senior management review; and |
• | designing and implementing the risk assessment process. |
Item 9B. |
Other Information. |
Item 9C. |
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. |
Item 10. |
Directors, Executive Officers and Corporate Governance. |
Item 11. |
Executive Compensation. |
Item 12. |
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. |
Item 13. |
Certain Relationships and Related Transactions, and Director Independence. |
Item 14. |
Principal Accountant Fees and Services. |
Item 15. |
Exhibits and Financial Statement Schedules. |
(a)(1) |
Financial Statements |
(a)(2) |
Financial Statement Schedules |
(a)(3) |
Exhibits |
Incorporated by Reference |
||||||||||||||||||||||||||
Exhibit Number |
Exhibit Description |
Form |
File No. |
Exhibit |
Filing Date |
Filed Herewith |
Furnished Herewith |
|||||||||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | X | ||||||||||||||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | X | ||||||||||||||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
# | Indicates a management contract or compensatory plan. |
* | The certifications attached as Exhibit 32.1 and Exhibit 32.2 that accompany this Annual Report on Form 10-K are deemed furnished and not filed with the SEC and are not to be incorporated by reference into any filing of the Company under the Securities Act or the Exchange Act whether made before or after the date of this Annual Report on Form 10-K, irrespective of any general incorporation language contained in such filing. |
Item 16. |
Form 10-K Summary. |
ZETA GLOBAL HOLDINGS CORP. | ||||||
Date: February 25, 2022 | By: | /s/ Christopher Greiner | ||||
Christopher Greiner | ||||||
Chief Financial Officer |
Name |
Title |
Date | ||
/s/ David Steinberg |
Chief Executive Officer |
February 25, 2022 | ||
David Steinberg | (Principal Executive Officer) |
|||
/s/ Christopher Greiner |
Chief Financial Officer |
February 25, 2022 | ||
Christopher Greiner | ( Principal Financial Officer) |
|||
/s/ Satish Ravella |
SVP - Finance |
February 25, 2022 | ||
Satish Ravella | (Principal Accounting Officer) |
|||
/s/ Jené Elzie |
Director |
February 25, 2022 | ||
Jené Elzie | ||||
/s/ William Landman |
Director |
February 25, 2022 | ||
William Landman | ||||
/s/ Robert Niehaus |
Director |
February 25, 2022 | ||
Robert Niehaus | ||||
/s/ William Royan |
Director |
February 25, 2022 | ||
William Royan | ||||
/s/ John Sculley |
Director |
February 25, 2022 | ||
John Sculley |