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,
2021.
“Our third quarter results exceeded our
expectations with record annual recurring revenue (ARR) of $262.2
million and total customers of more than 44,000. We continue to
scale the business with more than 40% revenue and ARR growth while
generating strong free cash flow margins of 28%.” said Stu
Sjouwerman, founder and chief executive officer of KnowBe4. “We are
extremely excited about the positive response to the recent
announcement of our acquisition of SecurityAdvisor, which closed on
November 1, 2021. Through this acquisition, we believe we are
creating a new category of cybersecurity that we are calling Human
Detection and Response, or HDR. We are also seeing remarkable
traction with our own internal product development initiatives,
including Password IQ, which is currently in a beta release stage.
With such positive momentum, we are looking forward to a strong
finish to the year."
Krish Venkataraman, KnowBe4’s co-president and
chief financial officer, added, “Our successful third quarter
financial results show that we continue to execute on our key
growth initiatives. GAAP revenue grew by 42.6% year-over-year,
driven by substantial growth across both enterprise and SMB
customers, increasing multi-product attachment rates to 19% and
year-over-year growth in international revenues of 99%. We are also
very pleased to report continued strong gross margins in excess of
80% and strong free cash flow generation of $18.0 million for the
quarter.”
Third Quarter 2021 Financial
Highlights
|
Q3-2021 |
|
Q3-2020 |
|
Change |
|
(in thousands, except percentage and per share
amounts) |
Revenue |
$ |
64,091 |
|
|
|
$ |
44,932 |
|
|
|
+ 42.6 |
% |
Annual recurring revenue1 |
$ |
262,172 |
|
|
|
$ |
181,924 |
|
|
|
+ 44.1 |
% |
GAAP gross margin |
85.0% |
|
|
|
84.6% |
|
|
|
+ 0.4 |
% |
Non-GAAP gross margin1 |
85.4% |
|
|
|
84.9% |
|
|
|
+ 0.5 |
% |
GAAP operating margin |
(1.1)% |
|
|
|
(2.2)% |
|
|
|
+ 1.1 |
% |
Non-GAAP operating
margin1 |
4.6% |
|
|
|
0.7% |
|
|
|
+ 3.9 |
% |
Cash flow provided by
operating activities |
$ |
19,949 |
|
|
|
$ |
12,661 |
|
|
|
+ 57.6 |
% |
Free cash flow1 |
$ |
18,006 |
|
|
|
$ |
11,017 |
|
|
|
+ 63.4 |
% |
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 heading "Explanation of Non-GAAP Financial Measures."
Recent Business Highlights
- Revenue and ARR increased
year-over-year by 42.6% and 44.1% respectively, driven primarily by
overall business growth resulting from positive multi-product
adoption trends, strong international growth and continued
expansion of our customer base into both enterprise and SMB.
- On September 23, 2021, we hosted
our inaugural KB4-CON EMEA conference which engaged with
cybersecurity professionals across the EMEA region to provide
relevant industry updates and product overviews and roadmap
reviews. The conference was well attended with over 5,000
registrations to the virtual event.
- As announced during our KB4-CON
EMEA conference, we have release a beta version of a new product
code named "PasswordIQ." Password IQ will continuously monitor
organizations' employees for password hygiene issues, such as weak
or breached passwords, summarize data on an easy-to-read dashboard
and allow for automatic training to mitigate password hygiene
risk.
- On October 21, 2021, we held a
business update conference call announcing the acquisition of
SecurityAdvisor Technologies, Inc. for an estimated aggregate
purchase price of $80.0 million a portion of which is to be paid
upfront through a combination of cash and our Class A common stock
and a portion of which is to be paid through future incentives,
including earnout provisions and restricted stock unit grants. This
acquisition closed on November 1, 2021 and is subject to customary
post-closing adjustments. We look forward to future innovations
within the Human Detection and Response category that we expect to
come through the integration of the SecurityAdvisor technology into
our core platform.
- We completed a follow-on offering
on August 16, 2021 where certain selling stockholders offered and
sold 11,995,546 shares of our Class A common stock at a price to
the public of $20.75 per share, including the full exercise of the
underwriters’ option to purchase 1,564,636 additional shares of our
Class A common stock from the selling stockholders. We did not
receive any proceeds from the sale of shares by the selling
stockholders in the follow-on offering.
Financial Outlook
For the fourth quarter and full year 2021, the
Company expects:
Metric |
Fourth Quarter Range |
Growth |
Total Revenue |
$66.8 - $67.2 million |
35 - 36% |
Metric |
Full Year Range |
Growth |
Total Revenue |
$243.8 - $244.2 million |
39 - 40% |
Free Cash Flow Margin |
20%+ |
N/A |
Conference Call
InformationKnowBe4 will host a conference call for
analysts and investors to discuss its earnings results for the
third quarter of 2021 and outlook for the fourth quarter and full
year 2021 today at 8:30 AM EDT.
Conference Call: (833) 529-0227
(US/Canada Toll Free) or (239) 738-2273Conference
ID: 4828864Webcast:
https://investors.knowbe4.com/investor-relations
A recorded webcast of the event will also be
available shortly after the call, and will be made available for
one year on the KnowBe4 Investor Relations website
(https://investors.knowbe4.com).
Forward-Looking StatementsThis
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 and our financial outlook and guidance
for the year 2021. 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. There are
a significant number of factors that could cause actual results to
differ materially from statements made in this press release,
including: the impact of the COVID-19 pandemic on our and our
customers’ business; 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
and support introductions and the risks associated with new
products and subscription and support offerings, including the risk
of defects, errors, or vulnerabilities; our ability to attract new
and retain existing customers; the integration of SecurityAdvisor
or companies we 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; 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.
Use of Non-GAAP Financial
InformationWe 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 KnowBe4KnowBe4 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 InformationKnowBe4 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.
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-based 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-based 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 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 revenue.
Free Cash Flow and Free Cash Flow MarginWe
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 CustomersWe 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 RevenueWe 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, 2021 |
|
December 31, 2020 |
|
(unaudited) |
|
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
272,273 |
|
|
|
$ |
85,582 |
|
|
Accounts receivable, net |
44,814 |
|
|
|
38,664 |
|
|
Deferred commissions |
17,043 |
|
|
|
13,177 |
|
|
Prepaid expenses and other current assets |
12,462 |
|
|
|
6,124 |
|
|
Total current assets |
346,592 |
|
|
|
143,547 |
|
|
|
|
|
|
Deferred commissions,
non-current |
29,370 |
|
|
|
24,022 |
|
|
Capitalized software and
content, net |
14,525 |
|
|
|
15,523 |
|
|
Property and equipment,
net |
9,117 |
|
|
|
10,284 |
|
|
Operating lease right of use
assets, net |
12,460 |
|
|
|
12,067 |
|
|
Intangible assets, net |
8,168 |
|
|
|
2,985 |
|
|
Goodwill |
42,607 |
|
|
|
8,605 |
|
|
Other assets |
1,074 |
|
|
|
1,177 |
|
|
Total assets |
$ |
463,913 |
|
|
|
$ |
218,210 |
|
|
|
|
|
|
Liabilities and stockholders'
(deficit) equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable and accrued expenses |
$ |
36,040 |
|
|
|
$ |
19,265 |
|
|
Current portion of deferred revenue |
170,149 |
|
|
|
127,043 |
|
|
Current portion of operating lease liabilities |
3,245 |
|
|
|
2,651 |
|
|
Total current liabilities |
209,434 |
|
|
|
148,959 |
|
|
|
|
|
|
Non-current liabilities: |
|
|
|
Deferred revenue |
70,425 |
|
|
|
58,653 |
|
|
Operating lease liabilities,
net of current portion |
9,765 |
|
|
|
9,766 |
|
|
Other non-current
liabilities |
2,184 |
|
|
|
3,991 |
|
|
Total liabilities |
291,808 |
|
|
|
221,369 |
|
|
|
|
|
|
Stockholders' equity
(deficit) |
|
|
|
Preferred stock, Series A, A-1, B, C, C-1 |
— |
|
|
|
— |
|
|
Common stock |
— |
|
|
|
— |
|
|
Common stock, Class A |
— |
|
|
|
— |
|
|
Common stock, Class B |
2 |
|
|
|
— |
|
|
Additional paid-in capital |
350,693 |
|
|
|
158,483 |
|
|
Accumulated deficit |
(177,546 |
) |
|
|
(161,303 |
) |
|
Accumulated other comprehensive loss |
(1,044 |
) |
|
|
(339 |
) |
|
Total stockholders' equity (deficit) |
172,105 |
|
|
|
(3,159 |
) |
|
Total liabilities and stockholders' equity
(deficit) |
$ |
463,913 |
|
|
|
$ |
218,210 |
|
|
KnowBe4,
Inc.Consolidated Statements of
Operations(in thousands, except per share
amounts)(unaudited)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Revenues, net |
$ |
64,091 |
|
|
|
$ |
44,932 |
|
|
|
$ |
176,991 |
|
|
|
$ |
125,599 |
|
|
Cost of revenues |
9,609 |
|
|
|
6,918 |
|
|
|
25,543 |
|
|
|
19,264 |
|
|
Gross profit |
54,482 |
|
|
|
38,014 |
|
|
|
151,448 |
|
|
|
106,335 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
Sales and marketing |
27,731 |
|
|
|
20,752 |
|
|
|
82,312 |
|
|
|
60,254 |
|
|
Technology and development |
7,579 |
|
|
|
4,822 |
|
|
|
20,081 |
|
|
|
14,119 |
|
|
General and administrative |
19,852 |
|
|
|
13,440 |
|
|
|
62,765 |
|
|
|
34,536 |
|
|
Total operating expenses |
55,162 |
|
|
|
39,014 |
|
|
|
165,158 |
|
|
|
108,909 |
|
|
Operating loss |
(680 |
) |
|
|
(1,000 |
) |
|
|
(13,710 |
) |
|
|
(2,574 |
) |
|
Other income (expense): |
|
|
|
|
|
|
|
Interest income |
16 |
|
|
|
20 |
|
|
|
41 |
|
|
|
159 |
|
|
Interest expense |
(67 |
) |
|
|
(16 |
) |
|
|
(329 |
) |
|
|
(45 |
) |
|
Other income (loss) |
114 |
|
|
|
29 |
|
|
|
(445 |
) |
|
|
142 |
|
|
Loss before income tax
(expense) benefit |
(617 |
) |
|
|
(967 |
) |
|
|
(14,443 |
) |
|
|
(2,318 |
) |
|
Income tax expense |
(963 |
) |
|
|
(735 |
) |
|
|
(1,800 |
) |
|
|
(316 |
) |
|
Net loss |
$ |
(1,580 |
) |
|
|
$ |
(1,702 |
) |
|
|
$ |
(16,243 |
) |
|
|
$ |
(2,634 |
) |
|
Net loss per share, basic and
diluted(1) |
$ |
(0.01 |
) |
|
|
$ |
(0.04 |
) |
|
|
$ |
(0.17 |
) |
|
|
$ |
(0.06 |
) |
|
Weighted-average shares used
in calculating basic and diluted net loss per share |
170,359,220 |
|
|
|
42,169,160 |
|
|
|
98,076,290 |
|
|
|
42,116,480 |
|
|
(1) At September 30, 2021, basic and diluted (loss) income
per share for Class A and Class B common stock are the same.
KnowBe4,
Inc.Consolidated Statements of Cash
Flows(in thousands)(unaudited)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Cash flows from operating
activities: |
|
|
|
|
|
|
|
Net loss |
$ |
(1,580 |
) |
|
|
$ |
(1,702 |
) |
|
|
$ |
(16,243 |
) |
|
|
$ |
(2,634 |
) |
|
Adjustments to reconcile net
(loss) income to net cash from operating activities: |
|
|
|
|
|
|
|
Additions to capitalized content |
(1,885 |
) |
|
|
(1,642 |
) |
|
|
(4,504 |
) |
|
|
(4,063 |
) |
|
Depreciation and amortization expense |
3,399 |
|
|
|
3,041 |
|
|
|
9,999 |
|
|
|
8,660 |
|
|
Deferred commissions amortization |
5,071 |
|
|
|
3,597 |
|
|
|
13,806 |
|
|
|
10,402 |
|
|
Equity-based compensation expense |
2,670 |
|
|
|
1,248 |
|
|
|
23,151 |
|
|
|
3,285 |
|
|
Other, net |
(73 |
) |
|
|
(1 |
) |
|
|
327 |
|
|
|
(92 |
) |
|
Changes in operating assets and liabilities, net of business
combinations: |
|
|
|
|
|
|
|
Accounts receivable |
(2,202 |
) |
|
|
(2,317 |
) |
|
|
(4,943 |
) |
|
|
828 |
|
|
Deferred commissions |
(8,726 |
) |
|
|
(5,469 |
) |
|
|
(23,112 |
) |
|
|
(15,427 |
) |
|
Prepaid and other assets |
623 |
|
|
|
1,732 |
|
|
|
(7,656 |
) |
|
|
782 |
|
|
Accounts payable and other liabilities |
3,750 |
|
|
|
3,956 |
|
|
|
13,675 |
|
|
|
7,096 |
|
|
Deferred revenue |
18,902 |
|
|
|
10,218 |
|
|
|
51,299 |
|
|
|
30,787 |
|
|
Net cash provided by operating activities |
19,949 |
|
|
|
12,661 |
|
|
|
55,799 |
|
|
|
39,624 |
|
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
Business combinations, net of cash acquired |
— |
|
|
|
— |
|
|
|
(11,227 |
) |
|
|
— |
|
|
Purchases of property and equipment |
(1,159 |
) |
|
|
(837 |
) |
|
|
(2,214 |
) |
|
|
(4,692 |
) |
|
Capitalized internal-use software costs |
(774 |
) |
|
|
(798 |
) |
|
|
(1,895 |
) |
|
|
(2,304 |
) |
|
Net cash used in investing activities |
(1,933 |
) |
|
|
(1,635 |
) |
|
|
(15,336 |
) |
|
|
(6,996 |
) |
|
Cash flows from financing
activities: |
|
|
|
|
|
|
|
Proceeds from the exercise of stock options |
2,483 |
|
|
|
22 |
|
|
|
3,435 |
|
|
|
157 |
|
|
Repurchase of common stock and options |
— |
|
|
|
— |
|
|
|
(1,171 |
) |
|
|
(497 |
) |
|
Proceeds from the issuance of common stock |
— |
|
|
|
— |
|
|
|
155,958 |
|
|
|
— |
|
|
Acquisition-related contingent liability payments |
— |
|
|
|
— |
|
|
|
(375 |
) |
|
|
(252 |
) |
|
Proceeds from finance lease obligations |
— |
|
|
|
— |
|
|
|
— |
|
|
|
214 |
|
|
Payments for finance lease obligations |
(10 |
) |
|
|
(9 |
) |
|
|
(30 |
) |
|
|
(24 |
) |
|
Taxes paid for the net share settlement of restricted stock
units |
(5,110 |
) |
|
|
— |
|
|
|
(11,892 |
) |
|
|
— |
|
|
Net cash provided by (used in) financing activities |
(2,637 |
) |
|
|
13 |
|
|
|
145,925 |
|
|
|
(402 |
) |
|
Effect of exchange rate changes
on cash and cash equivalents |
(162 |
) |
|
|
184 |
|
|
|
303 |
|
|
|
(100 |
) |
|
Net change in cash and cash
equivalents |
15,217 |
|
|
|
11,223 |
|
|
|
186,691 |
|
|
|
32,126 |
|
|
Cash and cash equivalents,
beginning of period |
257,056 |
|
|
|
69,767 |
|
|
|
85,582 |
|
|
|
48,864 |
|
|
Cash and cash equivalents, end of
period |
$ |
272,273 |
|
|
|
$ |
80,990 |
|
|
|
$ |
272,273 |
|
|
|
$ |
80,990 |
|
|
Non-GAAP Gross Profit and Non-GAAP Gross
Margin
|
Three Months Ended September 30, |
|
2021 |
|
2020 |
|
(in thousands, except percentages) |
Gross profit |
$ |
54,482 |
|
|
$ |
38,014 |
|
Add: Stock-based compensation expense |
124 |
|
|
70 |
|
Add: Amortization of acquired intangible assets |
142 |
|
|
60 |
|
Non-GAAP gross profit |
$ |
54,748 |
|
|
$ |
38,144 |
|
|
|
|
|
GAAP gross margin |
85.0 |
% |
|
84.6 |
% |
Non-GAAP gross margin |
85.4 |
% |
|
84.9 |
% |
Non-GAAP Operating Income (Loss) and
Non-GAAP Operating Margin
|
Three Months Ended September 30, |
|
2021 |
|
2020 |
|
(in thousands, except percentages) |
Operating loss |
$ |
(680 |
) |
|
|
$ |
(1,000 |
) |
|
Add: Stock-based compensation expense |
2,744 |
|
|
|
1,234 |
|
|
Add: Amortization of acquired intangible assets |
302 |
|
|
|
83 |
|
|
Add: Acquisition and integration related costs |
588 |
|
|
|
— |
|
|
Non-GAAP operating income |
$ |
2,954 |
|
|
|
$ |
317 |
|
|
|
|
|
|
GAAP operating margin |
(1.1)% |
|
|
|
(2.2)% |
|
|
Non-GAAP operating margin |
4.6% |
|
|
|
0.7% |
|
|
Non-GAAP Net Income (Loss) Per Share
|
Three Months Ended September 30, |
|
2021 |
|
2020 |
GAAP net loss per share,
diluted |
$ |
(0.01 |
) |
|
|
$ |
(0.04 |
) |
|
Add: Stock-based compensation expense |
0.02 |
|
|
|
0.03 |
|
|
Add: Amortization of acquired intangible assets |
— |
|
|
|
— |
|
|
Add: Acquisition and integration related costs |
— |
|
|
|
— |
|
|
Non-GAAP net income (loss) per
share, diluted |
$ |
0.01 |
|
|
|
$ |
(0.01 |
) |
|
|
|
|
|
Weighted-average shares used
in the calculation of GAAP net loss per share |
170,359,220 |
|
|
|
42,169,160 |
|
|
Weighted-average shares used
in the calculation of Non-GAAP net income (loss) per share(1) |
175,651,818 |
|
|
|
42,169,160 |
|
|
(1) At September 30, 2021, non-GAAP weighted
average shares used assumes that all historical preferred stock and
all common stock outstanding prior to the Company’s IPO were
reclassified into Class B common stock as of January 1, 2021 and
that all vested and exercisable stock options were exercised as of
the earlier of January 1, 2021 or the beginning of the quarter in
which they became vested and exercisable. There were no adjustments
to weighted-average shares outstanding at September 30, 2020.
Free Cash Flow
|
Three Months Ended September 30, |
|
2021 |
|
2020 |
|
(in thousands) |
Net cash provided by operating
activities |
$ |
19,949 |
|
|
|
$ |
12,661 |
|
|
Less: Purchases of property and equipment |
(1,159 |
) |
|
|
(837 |
) |
|
Less: Capitalized internal-use software |
(774 |
) |
|
|
(798 |
) |
|
Less: Principal payments on finance leases |
(10 |
) |
|
|
(9 |
) |
|
Free Cash Flow |
$ |
18,006 |
|
|
|
$ |
11,017 |
|
|
Free Cash Flow Margin(1) |
28.1 |
% |
|
|
24.5 |
% |
|
(1) Free Cash Flow Margin is calculated as Free
Cash Flow divided by Revenues, net for each period.
Key Business Metrics
|
September 30, |
|
2021 |
|
2020 |
|
(annual recurring revenue in thousands) |
Number of customers |
41,601 |
|
|
34,604 |
|
Annual recurring revenue |
$ |
262,172 |
|
|
$ |
181,924 |
|
Stock-based Compensation Expense
|
Three Months Ended September 30, |
|
2021 |
|
2020 |
|
(in thousands) |
Cost of revenues |
$ |
124 |
|
|
$ |
70 |
|
Sales and marketing |
726 |
|
|
423 |
|
Technology and
development |
242 |
|
|
153 |
|
General and
administrative |
1,652 |
|
|
588 |
|
Total stock-based compensation expense |
$ |
2,744 |
|
|
$ |
1,234 |
|
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