KnowBe4, Inc. (NASDAQ: KNBE), provider of the leading security
awareness training and simulated phishing platform, today reported
results for the third quarter ended September 30, 2022.
“We are pleased to report another quarter of
progress toward our growth goals, with ARR reaching $347.2 million
for the third quarter of 2022.” said Stu Sjouwerman, founder and
Chief Executive Officer of KnowBe4. “We are excited about our
progress with new product development, including the
highly-anticipated SecurityCoach product, which remains on track
for release in November 2022. As security incidents and breaches
continue to make headlines, we are proud to offer our customers
additional ways to enhance security awareness and strengthen their
security culture."
Bob Reich, KnowBe4’s Chief Financial Officer,
added, “Revenues for the third quarter grew 33.9% year-over-year to
$85.8 million, despite a challenging macroeconomic environment. We
continued our focus on a balance of both growth and profitability,
with our GAAP gross margin remaining strong at 86.7% and a strong
free cash flow performance of $30.5 million for the quarter.”
Financial Highlights
|
Q3-2022 |
|
Q3-2021 |
|
Change |
|
(in thousands, except percentages) |
Revenues, net |
$ |
85,836 |
|
|
$ |
64,091 |
|
|
+33.9 |
% |
Annual recurring revenue1 |
$ |
347,152 |
|
|
$ |
262,172 |
|
|
+32.4 |
% |
GAAP gross margin |
|
86.7 |
% |
|
|
85.0 |
% |
|
+1.7 |
% |
Non-GAAP gross margin1 |
|
87.7 |
% |
|
|
85.4 |
% |
|
+2.3 |
% |
GAAP operating margin |
|
5.3 |
% |
|
|
(1.1 |
)% |
|
+6.4 |
% |
Non-GAAP operating
margin1 |
|
14.7 |
% |
|
|
4.6 |
% |
|
+10.1 |
% |
Cash flow provided by
operating activities |
$ |
32,728 |
|
|
$ |
19,853 |
|
|
+64.9 |
% |
Free cash flow1 |
$ |
30,451 |
|
|
$ |
17,910 |
|
|
+70.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
1 A reconciliation of GAAP to non-GAAP financial
measures and definitions for our key business metrics, including
annualized recurring revenue and free cash flow, is provided under
the headings "Explanation of Non-GAAP Financial Measures" and
"Explanation of Key Business Metrics".
Pending Merger Agreement
As previously announced, on October 11, 2022, we
entered into a definitive agreement pursuant to which we agreed to
be acquired by Vista Equity Partners (“Vista”) in an all cash
transaction for $24.90 per share. Upon completion of the
transaction, we will become a privately held company. The
transaction is subject to customary closing conditions, including
completion of regulatory review and approval of the transaction by
our stockholders. The transaction, which is expected to close in
the first half of 2023, has been approved by our board of
directors.
Conference Call
InformationGiven the pending transaction with Vista (the
“Transaction”), as is customary during the pendency of an
acquisition, we will not host an earnings conference call or live
webcast to discuss these financial results. Additionally, we will
not provide financial guidance in conjunction with our third
quarter 2022 earnings release. For further detail and discussion of
our financial performance please refer to our upcoming quarterly
report on Form 10-Q for the quarter ended September 30,
2022.
Use of Non-GAAP Financial
Information
We believe that the presentation of non-GAAP
financial information provides important supplemental information
to management and investors regarding financial and business trends
relating to our financial condition and results of operations. For
further information regarding these non-GAAP measures, including
the reconciliation of these non-GAAP financial measures to their
most directly comparable GAAP financial measures, please refer to
the financial tables below, as well as the “Explanation of Non-GAAP
Financial Measures" section of this press release.
About KnowBe4
KnowBe4 is the leading provider of “new-school”
security awareness training and simulated phishing platform. Our
mission is to enable your employees to make smarter security
decisions, every day. Through our subscription-based services, your
organization will have access to the leading security awareness
training platform.
Available Information
KnowBe4 announces material information to the
public about KnowBe4, its products and other matters through a
variety of means, including filings with the SEC, press releases,
public conference calls, webcasts, its Investor Relations website,
its Twitter accounts (@KnowBe4) and its blogs (including
blog.knowbe4.com/) in order to achieve broad, non-exclusionary
distribution of information to the public and for complying with
its disclosure obligations under Regulation FD.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements generally involve risks and
uncertainties, including statements regarding our future financial
and operating performance. In some cases, you can identify forward
looking statements because they contain words such as "may,"
"will," "should," "plans," "anticipates," "going to," "could,"
"intends," "target," "projects," "contemplates," "believes,"
"estimates," "predicts," "potential" or "continue" or the negative
of these words or other similar terms or expressions that concern
KnowBe4's expectations, strategy, priorities, plans or intentions.
Forward-looking statements in this press release include, but are
not limited to, statements related to: the
Transaction, including the expected timing of the closing of
the Transaction and expectations for KnowBe4 following the closing
of the Transaction. There are a number of risks that could cause
actual results to differ materially from statements made in this
press release, including: the possibility that the conditions to
the closing of the Transaction are not satisfied, including the
risk that our stockholders do not approve the adoption of the
Merger Agreement and the risk that we fail to receive required
regulatory approvals from applicable governmental entities; the
occurrence of any event, change or other circumstance that could
result in the Merger Agreement being terminated, including in
circumstances that would require us to pay a termination fee or
other expenses; uncertainties as to the timing of the consummation
of the Transaction; the effect of the pendency of the Transaction
and related publicity on our current plans and operations,
including our ability to retain and hire key personnel and our
ability to maintain relationships with our current and prospective
customers, suppliers and others with whom we do business; the
diversion of management’s attention from our ongoing business
operations due to processes related to the Transaction. There are a
significant number of factors that could cause actual results to
differ materially from statements made in this press release,
including: our limited operating history; our ability to identify
and effectively implement the necessary changes to address
execution challenges; risks associated with managing our rapid
growth; our limited experience with new product and subscription
introductions and the risks associated with new products and
subscriptions, including the risk of defects, errors, or
vulnerabilities; our ability to attract new and retain existing
customers; the integration of companies we have acquired and may
acquire in the future; the failure to timely develop and achieve
market acceptance of new products as well as existing products;
rapidly evolving technological developments in the market; length
of sales cycles; the emergence and impact of new COVID-19 variants
and related public health measures on our and our customers’
business; and general market, political, economic, and business
conditions.
Additional risks and uncertainties that could affect our
financial results are included under the captions “Risk Factors”
and “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” set forth from time to time in our
filings and reports with the Securities and Exchange Commission
(“SEC”), including in our most recent Quarterly Report on Form 10-Q
and any subsequent filings with the SEC. Copies of these filings
are available free of charge at the SEC’s website at www.sec.gov or
upon request from our investor relations department. You should not
rely on these forward-looking statements, as actual outcomes and
results may differ materially from those contemplated by these
forward-looking statements, including, as a result of such risks
and uncertainties. All forward-looking statements in this press
release are based on information available to us as of the date
hereof, and we do not assume any obligation to update the
forward-looking statements provided to reflect events that occur or
circumstances that exist after the date on which they were
made.
Additional Information and Where to Find It
KnowBe4 has filed a preliminary proxy statement
in connection with special meeting of stockholders (the “Special
Meeting”) related to the Transaction. Prior to the Special Meeting,
KnowBe4 will furnish a definitive proxy statement to its
stockholders, together with a proxy card. STOCKHOLDERS ARE URGED TO
READ THE DEFINITIVE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR
SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS WHEN THEY
BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.
Detailed information regarding the names, affiliations and
interests of individuals who are participants in the solicitation
of proxies of KnowBe4’s stockholders is available in KnowBe4’s
preliminary proxy statement.
Stockholders may obtain, free of charge,
KnowBe4’s proxy statement (in both preliminary and definitive
form), any amendments or supplements thereto, and any other
relevant documents filed by Twitter with the U.S. Securities and
Exchange Commission (the “SEC”) in connection with the Special
Meeting at the SEC’s website (http://www.sec.gov). Copies of
KnowBe4’s proxy statement (in both preliminary and definitive
form), any amendments or supplements thereto, and any other
relevant documents filed by KnowBe4 with the SEC in connection with
the Special Meeting will also be available, free of charge, at
KnowBe4’s investor relations website
(https://investors.KnowBe4.com) or by emailing IR@knowbe4.com.
Investor Relations Contact:
Ken Talanianir@knowbe4.com
Press Contact:
Kathy Wattmanpr@knowbe4.com
Explanation of Non-GAAP Financial Measures
To supplement our financial information
presented in accordance with generally accepted accounting
principles in the United States ("GAAP"), we consider certain
financial measures that are not prepared in accordance with GAAP,
including non-GAAP gross profit, non-GAAP gross margin, non-GAAP
operating income (loss), non-GAAP operating margin, free cash flow
and free cash flow margin, as useful in evaluating our operating
performance. We believe that non-GAAP financial information, when
taken collectively, may be helpful to investors because it assists
investors in seeing our operating results through the eyes of
management, and because we believe that these measures provide an
additional tool for investors to use in comparing our operating
results over multiple periods with other companies in our industry.
However, non-GAAP financial information is presented for
supplemental informational purposes only, has limitations as an
analytical tool, and should not be considered in isolation or as a
substitute for financial information presented in accordance with
GAAP. Other companies, including companies in our industry, may
calculate similarly-titled non-GAAP measures differently or may use
other measures to evaluate their performance, all of which could
reduce the usefulness of our non-GAAP financial measures as tools
for comparison. A reconciliation is provided below for each
non-GAAP financial measure to the most directly comparable
financial measure stated in accordance with GAAP. Investors are
encouraged to review the related GAAP financial measures and the
reconciliation of these non-GAAP financial measures to their most
directly comparable GAAP financial measures and not rely on any
single financial measure to evaluate our business.
Non-GAAP Gross Profit and Non-GAAP Gross
Margin
We define non-GAAP gross profit as GAAP gross
profit excluding stock compensation expense, amortization of
acquired intangible assets and acquisition and integration related
costs. Costs associated with acquisitions and integration include
legal, accounting and other professional fees, changes in the fair
value of contingent consideration obligations and other costs
related to the transition of the acquired business. We believe
non-GAAP gross profit and non-GAAP gross margin provides our
management and investors consistency and comparability with our
past financial performance and facilitates period-to-period
comparisons of our results of operations, as this metric generally
eliminates the effects of certain variables unrelated to our
overall operating performance.
Non-GAAP Operating Income (Loss) and Non-GAAP
Operating Margin
We define non-GAAP operating income (loss) as
GAAP operating income (loss) excluding stock compensation expense,
amortization of acquired intangible assets, acquisition and
integration related costs and merger-related transaction expenses.
Costs associated with acquisitions and integration include legal,
accounting and other professional fees, changes in the fair value
of contingent consideration obligations and other costs related to
the transition of the acquired business. Nonrecurring expenses
associated with the pending transaction with Vista include legal
and other professional fees. We believe non-GAAP operating income
(loss) provides our management and investors consistency and
comparability with our past financial performance and facilitates
period-to-period comparisons of operations, as this metric
generally eliminates the effects of certain variables unrelated to
our overall operating performance. Non-GAAP operating margin is
calculated as non-GAAP operating income (loss) divided by
revenues.
Free Cash Flow and Free Cash Flow Margin
We define free cash flow as net cash provided by
operating activities, the most directly comparable financial
measure calculated in accordance with GAAP, less purchases of
property, equipment, amounts capitalized for internal-use software
and principal payments on finance leases. We believe that free cash
flow is a meaningful indicator of liquidity to management and
investors about the amount of cash generated from our operations
that, after the investments in property, equipment and capitalized
internal-use software, can be used for strategic initiatives. Free
cash flow margin is calculated by dividing free cash flow by
revenues.
Explanation of Key Business
Metrics
In addition to GAAP measures of performance, we
regularly monitor certain financial and operating metrics,
including Number of Customers and Annual Recurring Revenue (ARR),
in order to measure our current performance and estimate our future
performance. We regularly review and may adjust our processes for
calculating our internal metrics to improve their accuracy.
Number of Customers
We define a customer as a separate and distinct
buying entity, such as a company, an educational or government
institution or a distinct business unit of a large company that has
an active contract with us to access our platform. We do not
consider our channel partners as separate customers as our
contracts are executed with the end user, and we treat MSPs, who
may purchase our products on behalf of multiple companies, as a
single customer. We believe that our ability to increase and retain
the number of customers on our platform is an indicator of our
market penetration, the growth of our business and potential future
business opportunities.
Annual Recurring Revenue
We define ARR as the annualized value of all
contractual subscription agreements as of the end of the period. We
perform this calculation on an individual contract basis by
dividing the total dollar amount of a contract by the total
contract term stated in months and multiplying this amount by
twelve to annualize. Calculated ARR for each individual contract is
then aggregated to arrive at total ARR. We believe that ARR is a
key metric to measure our business performance because it is driven
by our ability to acquire new customers and to maintain and expand
our relationship with existing customers.
KnowBe4,
Inc.Consolidated Balance Sheets(in
thousands)
|
September 30, 2022 |
|
December 31, 2021 |
|
(unaudited) |
|
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
343,936 |
|
|
$ |
273,723 |
|
Accounts receivable, net |
|
63,952 |
|
|
|
54,071 |
|
Deferred commissions |
|
19,797 |
|
|
|
17,842 |
|
Prepaid expenses and other current assets |
|
15,640 |
|
|
|
10,580 |
|
Total current assets |
|
443,325 |
|
|
|
356,216 |
|
|
|
|
|
Deferred commissions,
non-current |
|
39,467 |
|
|
|
33,869 |
|
Capitalized software and
content, net |
|
30,551 |
|
|
|
27,074 |
|
Property and equipment,
net |
|
10,147 |
|
|
|
9,120 |
|
Operating lease right of use
assets, net |
|
14,003 |
|
|
|
12,998 |
|
Intangible assets, net |
|
7,969 |
|
|
|
7,992 |
|
Goodwill |
|
87,704 |
|
|
|
89,329 |
|
Other assets |
|
3,879 |
|
|
|
1,080 |
|
Total assets |
$ |
637,045 |
|
|
$ |
537,678 |
|
|
|
|
|
Liabilities and stockholders'
equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable and accrued expenses |
$ |
41,827 |
|
|
$ |
37,642 |
|
Current portion of deferred revenue |
|
227,662 |
|
|
|
184,496 |
|
Current portion of operating lease liabilities |
|
3,560 |
|
|
|
2,938 |
|
Total current liabilities |
|
273,049 |
|
|
|
225,076 |
|
|
|
|
|
Non-current liabilities: |
|
|
|
Deferred revenue |
|
101,947 |
|
|
|
81,278 |
|
Operating lease liabilities,
net of current portion |
|
10,959 |
|
|
|
10,484 |
|
Other non-current
liabilities |
|
3,905 |
|
|
|
3,573 |
|
Total liabilities |
|
389,860 |
|
|
|
320,411 |
|
|
|
|
|
Stockholders' equity |
|
|
|
Preferred stock |
|
— |
|
|
|
— |
|
Common stock, Class A |
|
1 |
|
|
|
1 |
|
Common stock, Class B |
|
1 |
|
|
|
2 |
|
Additional paid-in capital |
|
413,206 |
|
|
|
391,803 |
|
Accumulated deficit |
|
(161,925 |
) |
|
|
(173,148 |
) |
Accumulated other comprehensive loss |
|
(4,098 |
) |
|
|
(1,391 |
) |
Total stockholders' equity |
|
247,185 |
|
|
|
217,267 |
|
Total liabilities and stockholders' equity |
$ |
637,045 |
|
|
$ |
537,678 |
|
|
|
|
|
|
|
|
|
KnowBe4,
Inc.Consolidated Statements of
Operations(in thousands, except per share
amounts)(unaudited)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenues, net |
$ |
85,836 |
|
|
$ |
64,091 |
|
|
$ |
241,631 |
|
|
$ |
176,991 |
|
Cost of revenues |
|
11,437 |
|
|
|
9,609 |
|
|
|
32,491 |
|
|
|
25,543 |
|
Gross profit |
|
74,399 |
|
|
|
54,482 |
|
|
|
209,140 |
|
|
|
151,448 |
|
Operating expenses: |
|
|
|
|
|
|
|
Sales and marketing |
|
34,603 |
|
|
|
27,731 |
|
|
|
100,034 |
|
|
|
82,312 |
|
Technology and development |
|
9,716 |
|
|
|
7,579 |
|
|
|
27,389 |
|
|
|
20,081 |
|
General and administrative |
|
25,537 |
|
|
|
19,852 |
|
|
|
71,764 |
|
|
|
62,765 |
|
Total operating expenses |
|
69,856 |
|
|
|
55,162 |
|
|
|
199,187 |
|
|
|
165,158 |
|
Operating income (loss) |
|
4,543 |
|
|
|
(680 |
) |
|
|
9,953 |
|
|
|
(13,710 |
) |
Other income (expense): |
|
|
|
|
|
|
|
Interest income |
|
1,570 |
|
|
|
16 |
|
|
|
2,103 |
|
|
|
41 |
|
Interest expense |
|
(65 |
) |
|
|
(67 |
) |
|
|
(216 |
) |
|
|
(329 |
) |
Other expense |
|
519 |
|
|
|
114 |
|
|
|
245 |
|
|
|
(445 |
) |
Income (loss) before income
tax expense |
|
6,567 |
|
|
|
(617 |
) |
|
|
12,085 |
|
|
|
(14,443 |
) |
Income tax expense |
|
(52 |
) |
|
|
(963 |
) |
|
|
(862 |
) |
|
|
(1,800 |
) |
Net income (loss) |
$ |
6,515 |
|
|
$ |
(1,580 |
) |
|
$ |
11,223 |
|
|
$ |
(16,243 |
) |
|
|
|
|
|
|
|
|
Net income (loss) per share,
basic |
$ |
0.04 |
|
|
$ |
(0.01 |
) |
|
$ |
0.06 |
|
|
$ |
(0.17 |
) |
Net income (loss) per share,
diluted |
$ |
0.04 |
|
|
$ |
(0.01 |
) |
|
$ |
0.06 |
|
|
$ |
(0.17 |
) |
|
|
|
|
|
|
|
|
Weighted-average shares used
in calculating basic net income (loss) per share |
|
175,864,081 |
|
|
|
170,359,220 |
|
|
|
175,231,892 |
|
|
|
98,076,290 |
|
Weighted-average shares used
in calculating diluted net income (loss) per share |
|
182,332,431 |
|
|
|
170,359,220 |
|
|
|
182,254,395 |
|
|
|
98,076,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KnowBe4,
Inc.Consolidated Statements of Cash
Flows(in thousands)(unaudited)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
Net
income (loss) |
$ |
6,515 |
|
|
$ |
(1,580 |
) |
|
$ |
11,223 |
|
|
$ |
(16,243 |
) |
Adjustments to reconcile net income (loss) to net cash from
operating activities: |
|
|
|
|
|
|
|
Additions to capitalized content |
|
(2,990 |
) |
|
|
(1,885 |
) |
|
|
(5,807 |
) |
|
|
(4,504 |
) |
Depreciation and amortization expense |
|
3,785 |
|
|
|
3,399 |
|
|
|
11,440 |
|
|
|
9,999 |
|
Deferred commissions amortization |
|
5,976 |
|
|
|
5,071 |
|
|
|
16,709 |
|
|
|
13,806 |
|
Stock compensation expense |
|
5,660 |
|
|
|
2,670 |
|
|
|
18,268 |
|
|
|
23,151 |
|
Other, net |
|
275 |
|
|
|
(73 |
) |
|
|
(727 |
) |
|
|
327 |
|
Changes in operating assets and liabilities, net of business
combinations: |
|
|
|
|
|
|
|
Accounts receivable |
|
(1,847 |
) |
|
|
(2,202 |
) |
|
|
(10,587 |
) |
|
|
(4,943 |
) |
Deferred commissions |
|
(8,308 |
) |
|
|
(8,726 |
) |
|
|
(25,799 |
) |
|
|
(23,112 |
) |
Prepaid and other assets |
|
1,883 |
|
|
|
623 |
|
|
|
(4,728 |
) |
|
|
(7,656 |
) |
Accounts payable and other liabilities |
|
2,918 |
|
|
|
3,654 |
|
|
|
4,901 |
|
|
|
13,675 |
|
Deferred revenue |
|
18,861 |
|
|
|
18,902 |
|
|
|
65,228 |
|
|
|
51,299 |
|
Net cash provided by operating activities |
|
32,728 |
|
|
|
19,853 |
|
|
|
80,121 |
|
|
|
55,799 |
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
Business combinations, net of cash acquired |
|
— |
|
|
|
96 |
|
|
|
40 |
|
|
|
(11,227 |
) |
Purchases of investments |
|
(1,000 |
) |
|
|
— |
|
|
|
(3,375 |
) |
|
|
— |
|
Purchases of property and equipment |
|
(1,846 |
) |
|
|
(1,159 |
) |
|
|
(4,467 |
) |
|
|
(2,214 |
) |
Capitalized internal-use software costs |
|
(421 |
) |
|
|
(774 |
) |
|
|
(2,681 |
) |
|
|
(1,895 |
) |
Net cash used in investing activities |
|
(3,267 |
) |
|
|
(1,837 |
) |
|
|
(10,483 |
) |
|
|
(15,336 |
) |
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
Proceeds from the exercise of stock options |
|
1,013 |
|
|
|
2,483 |
|
|
|
3,235 |
|
|
|
3,435 |
|
Proceeds from issuance of common stock under the employee stock
purchase plan |
|
— |
|
|
|
— |
|
|
|
2,932 |
|
|
|
— |
|
Repurchase of common stock and options |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,171 |
) |
Proceeds from the issuance of common stock |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
155,958 |
|
Acquisition-related contingent liability payments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(375 |
) |
Payments for finance lease obligations |
|
(10 |
) |
|
|
(10 |
) |
|
|
(31 |
) |
|
|
(30 |
) |
Taxes paid for the net share settlement of equity awards |
|
(697 |
) |
|
|
(5,110 |
) |
|
|
(2,682 |
) |
|
|
(11,892 |
) |
Net cash provided by financing activities |
|
306 |
|
|
|
(2,637 |
) |
|
|
3,454 |
|
|
|
145,925 |
|
|
|
|
|
|
|
|
|
Effect
of exchange rate changes on cash and cash equivalents |
|
(1,326 |
) |
|
|
(162 |
) |
|
|
(2,879 |
) |
|
|
303 |
|
|
|
|
|
|
|
|
|
Net
change in cash and cash equivalents |
|
28,441 |
|
|
|
15,217 |
|
|
|
70,213 |
|
|
|
186,691 |
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents, beginning of period |
|
315,495 |
|
|
|
257,056 |
|
|
|
273,723 |
|
|
|
85,582 |
|
Cash and
cash equivalents, end of period |
$ |
343,936 |
|
|
$ |
272,273 |
|
|
$ |
343,936 |
|
|
$ |
272,273 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Gross Profit and Non-GAAP Gross
Margin
|
Three Months Ended September 30, |
|
|
2022 |
|
|
|
2021 |
|
|
(in thousands, except percentages) |
Gross profit |
$ |
74,399 |
|
|
$ |
54,482 |
|
Add: Stock compensation expense |
|
148 |
|
|
|
124 |
|
Add: Amortization of acquired intangible assets |
|
715 |
|
|
|
142 |
|
Non-GAAP gross profit |
$ |
75,262 |
|
|
$ |
54,748 |
|
|
|
|
|
GAAP gross margin |
|
86.7 |
% |
|
|
85.0 |
% |
Non-GAAP gross margin |
|
87.7 |
% |
|
|
85.4 |
% |
|
|
|
|
|
|
|
|
Non-GAAP Operating Income and Non-GAAP
Operating Margin
|
Three Months Ended September 30, |
|
|
2022 |
|
|
|
2021 |
|
|
(in thousands, except percentages) |
Operating income (loss) |
$ |
4,543 |
|
|
$ |
(680 |
) |
Add: Stock compensation expense |
|
5,660 |
|
|
|
2,744 |
|
Add: Amortization of acquired technology and intangible assets |
|
876 |
|
|
|
302 |
|
Add: Acquisition and integration related costs |
|
— |
|
|
|
588 |
|
Add: Merger transaction expenses |
|
1,538 |
|
|
|
— |
|
Non-GAAP operating income |
$ |
12,617 |
|
|
$ |
2,954 |
|
|
|
|
|
GAAP operating margin |
|
5.3 |
% |
|
|
(1.1 |
)% |
Non-GAAP operating margin |
|
14.7 |
% |
|
|
4.6 |
% |
|
|
|
|
|
|
|
|
Non-GAAP Net Income Per Share
|
Three Months Ended September 30, |
|
|
2022 |
|
|
|
2021 |
|
GAAP net income (loss) per
share, diluted |
$ |
0.04 |
|
|
$ |
(0.01 |
) |
Add: Stock compensation expense |
|
0.03 |
|
|
|
0.02 |
|
Add: Amortization of acquired technology and intangible assets |
|
— |
|
|
|
— |
|
Add: Acquisition and integration related costs |
|
— |
|
|
|
— |
|
Add: Merger transaction expenses |
|
0.01 |
|
|
|
— |
|
Non-GAAP net income per share,
diluted |
|
0.08 |
|
|
|
0.01 |
|
|
|
|
|
Weighted-average shares used
in the calculation of GAAP net income (loss) per share,
diluted |
|
182,332,431 |
|
|
|
170,359,220 |
|
Weighted-average shares used
in the calculation of Non-GAAP net income (loss) per share,
diluted(1) |
|
182,332,431 |
|
|
|
175,651,818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) At September 30, 2022, basic and diluted loss per share for
Class A and Class B common stock are the same.
Free Cash Flow
|
Three Months Ended September 30, |
|
|
2022 |
|
|
|
2021 |
|
|
(in thousands, except percentages) |
Net cash provided by operating
activities |
$ |
32,728 |
|
|
$ |
19,853 |
|
Less: Purchases of property and equipment |
|
(1,846 |
) |
|
|
(1,159 |
) |
Less: Capitalized internal-use software |
|
(421 |
) |
|
|
(774 |
) |
Less: Principal payments on finance leases |
|
(10 |
) |
|
|
(10 |
) |
Free Cash Flow |
$ |
30,451 |
|
|
$ |
17,910 |
|
Free Cash Flow margin (1) |
|
35.5 |
% |
|
|
27.9 |
% |
|
|
|
|
|
|
|
|
(1) Free Cash Flow Margin is calculated as Free
Cash Flow divided by Revenues, net for each period.
Key Business Metrics
|
September 30, |
|
|
2022 |
|
|
|
2021 |
|
|
(dollars in thousands) |
Number of customers |
|
54,237 |
|
|
|
44,319 |
|
Annual recurring revenue |
$ |
347,152 |
|
|
$ |
262,172 |
|
|
|
|
|
|
|
|
|
Stock Compensation Expense
|
Three Months Ended September 30, |
|
|
2022 |
|
|
|
2021 |
|
|
(in thousands) |
Cost of revenues |
$ |
148 |
|
|
$ |
124 |
|
Sales and marketing |
|
1,226 |
|
|
|
726 |
|
Technology and
development |
|
1,234 |
|
|
|
242 |
|
General and
administrative |
|
3,052 |
|
|
|
1,652 |
|
Total stock compensation expense |
$ |
5,660 |
|
|
$ |
2,744 |
|
|
|
|
|
|
|
|
|
KnowBe4 (NASDAQ:KNBE)
Historical Stock Chart
From Mar 2024 to Apr 2024
KnowBe4 (NASDAQ:KNBE)
Historical Stock Chart
From Apr 2023 to Apr 2024