•

Revenue: ASC 606 total revenue was $107.6 million in the fourth quarter of 2019. Subscription and returns revenue was $99.9 million. Professional services revenue was $7.7 million.

•

Gross Profit: ASC 606 GAAP gross profit was $74.7 million in the fourth quarter of 2019, representing a 69% gross margin. ASC 606 non-GAAP gross profit was $76.8 million, representing a 71% non-GAAP gross margin.

•

Operating Loss: ASC 606 GAAP operating loss was $15.3 million in the fourth quarter of 2019. ASC 606 non-GAAP operating loss was $5.1 million.

•

Net Loss: ASC 606 GAAP net loss was $12.3 million in the fourth quarter of 2019. ASC 606 non-GAAP net loss was $2.0 million.

•

Net Loss per Share: ASC 606 GAAP net loss per share was $0.16 based on 77.1 million weighted-average shares outstanding in the fourth quarter of 2019. ASC 606 non-GAAP net loss per share was $0.03 based on 77.1 million weighted-average shares outstanding.

•

Deferred Revenue: ASC 606 total deferred revenue was $161.2 million at December 31, 2019. The current portion of ASC 606 deferred revenue was $160.3 million at December 31, 2019.

•

Cash: Net cash provided by operating activities was $17.0 million in the fourth quarter of 2019, compared to $7.0 million provided by operating activities in the fourth quarter of 2018. Free cash flow was $14.0 million, compared to $4.5 million in the fourth quarter of 2018. Cash and cash equivalents totaled $467.0 million at December 31, 2019, compared to cash and cash equivalents of $142.3 million at December 31, 2018.

•

Calculated Billings: Calculated billings were $120.8 million in the fourth quarter of 2019, compared to calculated billings of $93.4 million in the fourth quarter of 2018.

•

Revenue: ASC 605 total revenue was $107.7 million in the fourth quarter of 2019, up 40% from $76.9 million in the fourth quarter of 2018. Subscription and returns revenue was $100.0 million, up 39% from $71.7 million in the same period last year. Professional services revenue was $7.7 million, up 48% from $5.2 million in the same period last year.

•

Gross Profit: ASC 605 GAAP gross profit was $74.8 million in the fourth quarter of 2019, representing a 69% gross margin, compared to a GAAP gross profit of $54.7 million and a 71% gross margin in the fourth quarter of 2018. ASC 605 non-GAAP gross profit was $76.9 million, representing a 71% non-GAAP gross margin, compared to a non-GAAP gross profit of $56.2 million and a 73% non-GAAP gross margin in the fourth quarter of 2018.

•

Operating Loss: ASC 605 GAAP operating loss was $21.2 million in the fourth quarter of 2019, compared to a GAAP operating loss of $19.4 million in the fourth quarter of 2018. ASC 605 non-GAAP operating loss was $10.9 million, compared to a non-GAAP operating loss of $13.3 million in the fourth quarter of 2018.

•

Net Loss: ASC 605 GAAP net loss was $18.2 million in the fourth quarter of 2019, compared to a GAAP net loss of $18.4 million in the fourth quarter of 2018. ASC 605 non-GAAP net loss was $7.9 million, compared to a non-GAAP net loss of $12.3 million in the fourth quarter of 2018.

•

Net Loss per Share: ASC 605 GAAP net loss per share was $0.24 based on 77.1 million weighted-average shares outstanding in the fourth quarter of 2019, compared to a GAAP net loss per share of $0.28 based on 66.7 million weighted-average shares outstanding in the fourth quarter of 2018. ASC 605 non-GAAP net loss per share was $0.10 based on 77.1 million shares outstanding in the fourth quarter of 2019, compared to ASC 605 non-GAAP net loss per share of $0.19 based on 66.7 million shares outstanding in the fourth quarter of 2018.

•

Deferred Revenue: Total ASC 605 deferred revenue was $175.4 million at December 31, 2019, up from $134.7 million at December 31, 2018. The current portion of ASC 605 deferred revenue was $166.4 million at December 31, 2019, up from $125.3 million at December 31, 2018.

•

Cash: The adoption of ASC 606 did not have an impact on cash and free cash flow.

•

Revenue: ASC 606 total revenue was $382.4 million in fiscal year 2019. Subscription and returns revenue was $355.2 million. Professional services revenue was $27.2 million.

•

Gross Profit: ASC 606 GAAP gross profit was $267.1 million in fiscal year 2019, representing a 70% gross margin. ASC 606 non-GAAP gross profit was $275.1 million, representing a 72% non-GAAP gross margin.

•

Operating Loss: ASC 606 GAAP operating loss was $55.9 million in fiscal year 2019. ASC 606 non-GAAP operating loss was $14.4 million.

•

Net Loss: ASC 606 GAAP net loss was $50.2 million in fiscal year 2019. ASC 606 non-GAAP net loss was $8.7 million.

•

Net Loss per Share: ASC 606 GAAP net loss per share was $0.68 based on 73.3 million weighted-average shares outstanding in fiscal year 2019. ASC 606 non-GAAP net loss per share was $0.12 based on 73.3 million weighted-average shares outstanding.

•

Cash: Net cash provided by operating activities was $22.4 million in fiscal year 2019, compared to $3.1 million used by operating activities in fiscal year 2018. Free cash flow was positive $12.2 million, compared to negative $18.5 million in fiscal year 2018.

•

Calculated Billings: Calculated billings were $423.4 million in fiscal year 2019, compared to calculated billings of $314.5 million in fiscal year 2018.

•

Revenue: ASC 605 total revenue was $383.0 million in fiscal year 2019, up 41% from $272.1 million in fiscal year 2018. Subscription and returns revenue was $355.9 million, up 40% from $254.1 million in the prior year. Professional services revenue was $27.1 million, up 50% from $18.0 million in the prior year.

•

Gross Profit: ASC 605 GAAP gross profit was $267.7 million in fiscal year 2019, representing a 70% gross margin, compared to a GAAP gross profit of $193.4 million and a 71% gross margin in fiscal year 2018. ASC 605 non-GAAP gross profit was $275.7 million, representing a 72% non-GAAP gross margin, compared to a non-GAAP gross profit of $199.1 million and a 73% non-GAAP gross margin in fiscal year 2018.

•

Operating Loss: ASC 605 GAAP operating loss was $74.4 million in fiscal year 2019, compared to a GAAP operating loss of $76.1 million in fiscal year 2018. ASC 605 non-GAAP operating loss was $32.9 million, compared to a non-GAAP operating loss of $45.0 million in fiscal year 2018.

•

Net Loss: ASC 605 GAAP net loss was $68.8 million in fiscal year 2019, compared to a GAAP net loss of $75.6 million in fiscal year 2018. ASC 605 non-GAAP net loss was $27.3 million, compared to a non-GAAP net loss of $44.5 million in fiscal year 2018.

•

Net Loss per Share: ASC 605 GAAP net loss per share was $0.94 based on 73.3 million weighted-average shares outstanding in fiscal year 2019, compared to a GAAP net loss per share of $1.95 based on 38.7 million weighted-average shares outstanding in fiscal year 2018. ASC 605 non-GAAP net loss per share was $0.37 based on 73.3 million shares outstanding in fiscal year 2019, compared to ASC 605 non-GAAP net loss per share of $0.67 based on 66.2 million non-GAAP shares outstanding in fiscal year 2018.

•

Cash: The adoption of ASC 606 did not have an impact on cash and free cash flow.

•

Key Metrics: We ended the fourth quarter of 2019 with approximately 11,960 core customers, up from approximately 11,240 core customers at the end of the previous quarter and up from 9,070 at the end of the previous fiscal year. Our net revenue retention rate was 111% in the fourth quarter of 2019 and has averaged 111% over the last four quarters.

•

Chief Financial Officer Transition: We announced that chief financial officer (“CFO”), Bill Ingram, will retire March 31, 2020, and will be succeeded as CFO by Ross Tennenbaum, Avalara’s executive vice president of strategic initiatives. Ingram joined Avalara in December 2015 as CFO and built a finance team ready to manage a public company and lead the team through Avalara’s IPO. On January 29, 2020, Ingram was appointed to the Board of Directors and will continue to serve as a director following his retirement. In Tennenbaum’s current role as executive vice president of strategic initiatives, he leads several businesses that have developed from Avalara’s investments and acquisitions and represent important growth initiatives for the company. Tennenbaum’s experience was built over a 10-year investment banking career at Goldman Sachs and Credit Suisse, including working with Avalara since 2014 and leading our IPO in 2018.

•

Expansion of International Management Team: We announced the appointment of enterprise software executive Salim Ali as senior vice president of international. His responsibilities include shaping the company’s growth and go-to-market strategies internationally to scale and accelerate growth across all international markets including EMEA, Brazil, and India. Ali brings more than two decades of enterprise software, marketing, and business management experience to Avalara. He has overseen global marketing, product, and partnership efforts for notable enterprise technology companies, including SAP and Veritas Technologies. Ali comes to Avalara from Loyakk, Inc., where he served as chief executive officer driving the creation, launch, and growth of the company’s portfolio of customer experience and customer success offerings across the globe.

•

Appointment of Chief Marketing Officer: We announced the appointment of marketing veteran Jay Lee as chief marketing officer. His responsibilities include shaping the company’s global demand generation and communication strategies to drive commercial growth across markets and customer segments. Lee brings more than two decades of marketing and business management experience to Avalara. He has overseen B2B strategic marketing and business development teams at some of the world’s most recognizable companies including GE and American Express, and comes to Avalara from PayPal, where he served as the global head of marketing for the company’s Business Financing Solutions division.

•

ASC 606 total revenue between $107.5 and $108.5 million.

•

ASC 606 non-GAAP operating loss between $8.5 and $9.5 million.

•

ASC 606 total revenue between $470.0 and $474.0 million.

•

ASC 606 non-GAAP operating loss between $18.0 and $22.0 million.

•

We calculate non-GAAP cost of revenue, non-GAAP research and development expense, non-GAAP sales and marketing expense, and non-GAAP general and administrative expense as GAAP cost of revenue, GAAP research and development expense, GAAP sales and marketing expense, and GAAP general and administrative expense before stock-based compensation expense and the amortization of acquired intangible assets included in each of the expense categories.

•

We calculate non-GAAP gross profit as GAAP gross profit before stock-based compensation expense and the amortization of acquired intangibles included in cost of revenue. We calculate non-GAAP gross margin as GAAP gross margin before the impact of stock-based compensation expense and the amortization of acquired intangibles included in cost of revenue as a percentage of revenue.

•

We calculate non-GAAP operating loss as GAAP operating loss before stock-based compensation expense, amortization of acquired intangibles, and goodwill impairments. We calculate non-GAAP net loss as GAAP net loss before stock-based compensation expense, amortization of acquired intangibles, and goodwill impairments.

•

We calculate non-GAAP shares outstanding for 2018 as GAAP weighted-average shares outstanding during the period adjusted as if (1) the conversion of preferred stock into common stock and (2) the issuance of 8,625,000 shares of common stock in our IPO had both occurred as of January 1, 2018.  

•

We calculate non-GAAP net loss per share as non-GAAP net loss divided by non-GAAP shares outstanding.

•

We define free cash flow as net cash (used in) provided by operating activities less cash used for the purchases of property and equipment.

•

We define calculated billings as total revenue plus the changes in deferred revenue and contract liabilities in the period. Because we recognize subscription revenue ratably over the subscription term, calculated billings can be used to measure our subscription sales activity for a particular period, to compare subscription sales activity across particular periods, and as an indicator of future subscription revenue, the actual timing of which will be affected by several factors, including subscription start date and duration.

•

a unique account identifier in our billing system (multiple companies or divisions within a single consolidated enterprise that each have a separate unique account identifier are each treated as separate customers);

•

that is active as of the measurement date; and

•

for which we have recognized, as of the measurement date, greater than $3,000 in total revenue during the last twelve months.

For the Three Months Ended December 31,

2019

2018

Revenue:

Subscription and returns

$

99,956

$

71,730

Professional services

7,671

5,193

Total revenue

107,627

76,923

Cost of revenue:

Subscription and returns

28,287

18,572

Professional services

4,592

3,700

Total cost of revenue (1)

32,879

22,272

Gross profit

74,748

54,651

Operating expenses:

Research and development (1)

25,619

13,577

Sales and marketing (1)

46,310

49,630

General and administrative (1)

18,154

10,816

Goodwill impairment

—

—

Total operating expenses

90,083

74,023

Operating loss

(15,335

)

(19,372

)

Other (income) expense:

Interest income

(1,786

)

(742

)

Interest expense

3

113

Other (income) expense, net

(1,559

)

(160

)

Total other (income) expense, net

(3,342

)

(789

)

Loss before income taxes

(11,993

)

(18,583

)

Provision for (benefit from) income taxes

326

(151

)

Net loss

$

(12,319

)

$

(18,432

)

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

$

(0.16

)

$

(0.28

)

Weighted average shares of common stock outstanding, basic and diluted

77,147

66,654

For the Three Months Ended December 31,

(1) The stock-based compensation expense included above was as follows:

2019

2018

Cost of revenue

$

845

$

484

Research and development

1,966

908

Sales and marketing

2,325

1,818

General and administrative

3,307

1,300

Total stock-based compensation

$

8,443

$

4,510

The amortization of acquired intangibles included above was as follows:

Cost of revenue

$

1,219

$

1,114

Research and development

—

—

Sales and marketing

618

468

General and administrative

4

—

Total amortization of acquired intangibles

$

1,841

$

1,582

The total employer payroll tax expense on employee stock transactions included above was $0.5 million for the three months ended December 31, 2019, of which $0.1 million is included in cost of revenue, $0.1 million is included in research and development, $0.1 million is included in sales and marketing, and $0.2 million is included in general and administrative.

For the Year Ended December 31,

2019

2018

Revenue:

Subscription and returns

$

355,181

$

254,056

Professional services

27,240

18,042

Total revenue

382,421

272,098

Cost of revenue:

Subscription and returns

97,824

66,556

Professional services

17,475

12,093

Total cost of revenue (1)

115,299

78,649

Gross profit

267,122

193,449

Operating expenses:

Research and development (1)

82,442

51,909

Sales and marketing (1)

168,634

168,817

General and administrative (1)

71,918

39,603

Goodwill impairment

—

9,174

Total operating expenses

322,994

269,503

Operating loss

(55,872

)

(76,054

)

Other (income) expense:

Interest income

(6,037

)

(1,553

)

Interest expense

289

2,608

Other (income) expense, net

(865

)

(583

)

Total other (income) expense, net

(6,613

)

472

Loss before income taxes

(49,259

)

(76,526

)

Provision for (benefit from) income taxes

955

(976

)

Net loss

$

(50,214

)

$

(75,550

)

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

$

(0.68

)

$

(1.95

)

Weighted average shares of common stock outstanding, basic and diluted

73,345

38,692

For the Year Ended December 31,

(1) The stock-based compensation expense included above was as follows:

2019

2018

Cost of revenue

$

3,122

$

1,665

Research and development

6,666

3,179

Sales and marketing

8,736

5,492

General and administrative

15,825

5,585

Total stock-based compensation

$

34,349

$

15,921

The amortization of acquired intangibles included above was as follows:

Cost of revenue

$

4,854

$

4,020

Research and development

—

—

Sales and marketing

2,271

1,951

General and administrative

15

17

Total amortization of acquired intangibles

$

7,140

$

5,988

The total employer payroll tax expense on employee stock transactions included above was $6.0 million for the year ended December 31, 2019, of which $0.6 million is included in cost of revenue, $1.0 million is included in research and development, $1.7 million is included in sales and marketing, and $2.7 million is included in general and administrative.

December 31,

December 31,

2019

2018

Assets

Current assets:

Cash and cash equivalents

$

466,950

$

142,322

Trade accounts receivable—net of allowance for doubtful accounts

51,644

40,287

Deferred commissions

9,279

—

Prepaid expenses and other current assets

14,127

11,307

Total current assets before customer fund assets

542,000

193,916

Funds held from customers

24,383

13,113

Receivable from customers—net of allowance for doubtful accounts

420

270

Total current assets

566,803

207,299

Noncurrent assets:

Deferred commissions

29,137

—

Operating lease right-of-use assets—net (1)

49,321

—

Property and equipment—net

34,997

33,373

Intangible assets—net

22,932

19,371

Goodwill

101,224

61,300

Other noncurrent assets

2,853

1,589

Total assets

$

807,267

$

322,932

Liabilities and shareholders' equity

Current liabilities:

Trade payables

11,693

4,847

Accrued expenses

62,104

42,101

Deferred revenue

160,271

125,260

Accrued earnout liabilities

4,120

116

Operating lease liabilities (1)

8,756

—

Total current liabilities before customer fund obligations

246,944

172,324

Customer fund obligations

24,783

13,349

Total current liabilities

271,727

185,673

Noncurrent liabilities:

Deferred revenue

970

9,393

Accrued earnout liabilities

9,835

—

Operating lease liabilities (1)

58,301

—

Deferred rent

—

17,317

Deferred tax liability

337

560

Other noncurrent liabilities

2,375

436

Total liabilities

343,545

213,379

Commitments and contingencies

Shareholders' equity:

Preferred stock

—

—

Common stock

8

7

Additional paid-in capital

976,627

599,493

Accumulated other comprehensive loss

(2,719

)

(2,345

)

Accumulated deficit

(510,194

)

(487,602

)

Total shareholders’ equity

463,722

109,553

Total liabilities and shareholders' equity

$

807,267

$

322,932

(1) Avalara adopted the new lease accounting standard for the year ended December 31, 2019.

For the Three Months Ended December 31,

2019

2018

Cash flows from operating activities:

Net loss

$

(12,319

)

$

(18,432

)

Adjustments to reconcile net loss to net cash provided by operating activities

Stock-based compensation

8,443

4,510

Depreciation and amortization

4,123

3,412

Deferred tax expense (benefit)

(361

)

(184

)

Amortization of deferred rent

—

(41

)

Non-cash operating lease costs

1,620

—

Non-cash change in earnout liability

(1,653

)

28

Non-cash bad debt expense (recovery)

765

94

Other

112

33

Changes in operating assets and liabilities:

Trade accounts receivable

(3,214

)

(5,656

)

Prepaid expenses and other current assets

(270

)

(2,162

)

Deferred commissions

(5,934

)

—

Other noncurrent assets

(434

)

(259

)

Trade payables

965

(1,066

)

Accrued expenses

13,941

9,171

Deferred revenue

12,776

16,444

Operating lease liabilities

(1,605

)

—

Deferred rent

—

1,144

Net cash provided by operating activities

16,955

7,036

Cash flows from investing activities:

Purchase of property and equipment

(2,984

)

(2,569

)

Net (increase) decrease in customer fund assets

(7,520

)

(1,935

)

Net cash used in investing activities

(10,504

)

(4,504

)

Cash flows from financing activities:

Proceeds from exercise of stock options and common stock warrants

6,436

1,254

Taxes paid related to net share settlement of stock-based awards

—

(39

)

Payment related to business combination earnouts

—

(1,523

)

Net increase (decrease) in customer fund obligations

7,520

1,935

Net cash provided by financing activities

13,956

1,627

Foreign currency effect on cash and cash equivalents

(20

)

70

Net change in cash and cash equivalents

20,387

4,229

Cash and cash equivalents—Beginning of period

446,563

138,093

Cash and cash equivalents—End of period

$

466,950

$

142,322

For the Year Ended December 31,

2019

2018

Cash flows from operating activities:

Net loss

$

(50,214

)

$

(75,550

)

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

   activities:

Stock-based compensation

34,349

15,921

Depreciation and amortization

15,807

12,802

Goodwill impairment

—

9,174

Deferred tax expense (benefit)

(223

)

(1,294

)

Amortization of deferred rent

—

190

Non-cash operating lease costs

5,000

—

Non-cash change in earnout liability

(1,043

)

(402

)

Non-cash bad debt expense (recovery)

1,367

(288

)

Other

340

559

Changes in operating assets and liabilities:

Trade accounts receivable

(12,862

)

(13,508

)

Prepaid expenses and other current assets

(3,544

)

(4,850

)

Deferred commissions

(19,149

)

—

Other noncurrent assets

(1,265

)

(808

)

Trade payables

5,783

(4,419

)

Accrued expenses

16,246

15,266

Deferred revenue

37,558

42,422

Operating lease liabilities

(5,764

)

—

Deferred rent

—

1,723

Net cash provided by (used in) operating activities

22,386

(3,062

)

Cash flows from investing activities:

Purchase of property and equipment

(10,180

)

(15,483

)

Cash paid for acquisitions of businesses

(30,310

)

—

Cash paid for acquired intangible assets

(139

)

(5,002

)

Net (increase) decrease in customer fund assets

(11,506

)

118

Net cash used in investing activities

(52,135

)

(20,367

)

Cash flows from financing activities:

Proceeds from common stock offering, net of underwriting discounts

274,705

192,510

Payments of deferred financing costs

(555

)

(2,084

)

Payments on credit facility

—

(63,000

)

Proceeds from credit facility

—

23,000

Repayment of note payable

—

(234

)

Proceeds from exercise of stock options and common stock warrants

58,019

7,041

Proceeds from purchases of stock under employee stock purchase plan

12,293

—

Taxes paid related to net share settlement of stock-based awards

(1,183

)

(2,365

)

Repurchase of shares

—

(1,806

)

Payment related to business combination earnouts

(375

)

(1,523

)

Net increase (decrease) in customer fund obligations

11,506

(118

)

Net cash provided by financing activities

354,410

151,421

Foreign currency effect on cash and cash equivalents

(33

)

255

Net change in cash and cash equivalents

324,628

128,247

Cash and cash equivalents—Beginning of period

142,322

14,075

Cash and cash equivalents—End of period

$

466,950

$

142,322

For the Three Months Ended December 31,

2019

2018

As Reported

(ASC 606)

Impacts from

Adoption

Without

Adoption

(ASC 605)

As Reported

(ASC 605)

Revenue:

Subscription and returns

$

99,956

$

56

$

100,012

$

71,730

Professional services

7,671

(8

)

7,663

5,193

Total revenue

107,627

48

107,675

76,923

Cost of revenue:

Subscription and returns

28,287

—

28,287

18,572

Professional services

4,592

—

4,592

3,700

Total cost of revenue

32,879

—

32,879

22,272

Gross profit

74,748

48

74,796

54,651

Operating expenses:

Research and development

25,619

—

25,619

13,577

Sales and marketing

46,310

5,934

52,244

49,630

General and administrative

18,154

—

18,154

10,816

Goodwill impairment

—

—

—

—

Total operating expenses

90,083

5,934

96,017

74,023

Operating loss

(15,335

)

(5,886

)

(21,221

)

(19,372

)

Other (income) expense:

Interest income

(1,786

)

—

(1,786

)

(742

)

Interest expense

3

—

3

113

Other (income) expense, net

(1,559

)

—

(1,559

)

(160

)

Total other (income) expense, net

(3,342

)

—

(3,342

)

(789

)

Loss before income taxes

(11,993

)

(5,886

)

(17,879

)

(18,583

)

Provision for (benefit from) income taxes

326

—

326

(151

)

Net loss

$

(12,319

)

$

(5,886

)

$

(18,205

)

$

(18,432

)

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

$

(0.16

)

$

(0.08

)

$

(0.24

)

$

(0.28

)

Weighted average shares of common stock outstanding, basic and diluted

77,147

77,147

66,654

For the Year Ended December 31,

2019

2018

As Reported

(ASC 606)

Impacts from

Adoption

Without

Adoption

(ASC 605)

As Reported

(ASC 605)

Revenue:

Subscription and returns

$

355,181

$

744

$

355,925

$

254,056

Professional services

27,240

(158

)

27,082

18,042

Total revenue

382,421

586

383,007

272,098

Cost of revenue:

Subscription and returns

97,824

—

97,824

66,556

Professional services

17,475

—

17,475

12,093

Total cost of revenue

115,299

—

115,299

78,649

Gross profit

267,122

586

267,708

193,449

Operating expenses:

Research and development

82,442

—

82,442

51,909

Sales and marketing

168,634

19,149

187,783

168,817

General and administrative

71,918

—

71,918

39,603

Goodwill impairment

—

—

—

9,174

Total operating expenses

322,994

19,149

342,143

269,503

Operating loss

(55,872

)

(18,563

)

(74,435

)

(76,054

)

Other (income) expense:

Interest income

(6,037

)

—

(6,037

)

(1,553

)

Interest expense

289

—

289

2,608

Other (income) expense, net

(865

)

—

(865

)

(583

)

Total other (income) expense, net

(6,613

)

—

(6,613

)

472

Loss before income taxes

(49,259

)

(18,563

)

(67,822

)

(76,526

)

Provision for (benefit from) income taxes

955

—

955

(976

)

Net loss

$

(50,214

)

$

(18,563

)

$

(68,777

)

$

(75,550

)

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

$

(0.68

)

$

(0.25

)

$

(0.94

)

$

(1.95

)

Weighted average shares of common stock outstanding, basic and diluted

73,345

73,345

38,692

December 31,

December 31,

2019

2018

As Reported

(ASC 606)

Impacts from

Adoption

Without

Adoption

(ASC 605)

As Reported

(ASC 605)

Assets

Current assets:

Cash and cash equivalents

$

466,950

$

—

$

466,950

$

142,322

Trade accounts receivable—net of allowance for doubtful accounts

51,644

1,181

52,825

40,287

Deferred commissions

9,279

(9,279

)

—

—

Prepaid expenses and other current assets

14,127

—

14,127

11,307

Total current assets before customer fund assets

542,000

(8,098

)

533,902

193,916

Funds held from customers

24,383

—

24,383

13,113

Receivable from customers—net of allowance for doubtful accounts

420

—

420

270

Total current assets

566,803

(8,098

)

558,705

207,299

Noncurrent assets:

Deferred commissions

29,137

(29,137

)

—

—

Operating lease right-of-use assets—net

49,321

—

49,321

—

Property and equipment—net

34,997

—

34,997

33,373

Intangible assets—net

22,932

—

22,932

19,371

Goodwill

101,224

—

101,224

61,300

Other noncurrent assets

2,853

—

2,853

1,589

Total assets

$

807,267

$

(37,235

)

$

770,032

$

322,932

Liabilities and shareholders' equity

Current liabilities:

Trade payables