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Freshworks Reports Third Quarter 2022 Results

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  • Third quarter revenue grew 33% year-over-year, 37% adjusting for constant currency
  • Raises guidance for full year 2022 non-GAAP operating loss

SAN MATEO, Calif. , Nov. 01, 2022 (GLOBE NEWSWIRE) — Freshworks Inc. (NASDAQ: FRSH), a leading software company empowering businesses to delight their customers and employees, today announced financial results for its third quarter ended September 30, 2022.

“We delivered a strong quarter of results with revenue up 37% on a constant currency basis and significantly improved our operating efficiency,“ said Girish Mathrubootham, CEO and founder of Freshworks. “In Q3, we continued to deliver on our promise of modern, powerful, easy to use software for everyone with new updates to our product suite.”

Third Quarter 2022 Financial Summary Results

  • Revenue: Total revenue was $128.8 million, representing growth of 33% compared to the third quarter of 2021 and 37% adjusting for constant currency.
  • GAAP (Loss) from Operations: GAAP (loss) from operations was $(58.3) million, compared to $(140.3) million in the third quarter of 2021.
  • Non-GAAP (Loss) from Operations: Non-GAAP (loss) from operations was $(3.1) million, compared to $(1.5) million in the third quarter of 2021.
  • GAAP Net (Loss) Per Share: GAAP basic and diluted net (loss) per share was $(0.20) based on 286.7 million weighted-average shares outstanding, compared to $(24.72) based on 95.9 million weighted-average shares outstanding in the third quarter of 2021.
  • Non-GAAP Net (Loss) Per Share: Non-GAAP basic and diluted net (loss) per share was $(0.01) based on 286.7 million weighted-average shares outstanding, compared to $(0.04) based on 95.9 million weighted-average shares outstanding in the third quarter of 2021.
  • Net Cash (Used in) Provided by Operating Activities: Net cash (used in) operating activities was $(4.2) million, compared to net cash (used in) operating activities of $(2.0) million in the third quarter of 2021.
  • Free Cash Flow: Free cash flow was $(7.2) million, compared to $(4.2) million in the third quarter of 2021.
  • Cash, Cash Equivalents and Marketable Securities: Cash, cash equivalents, and marketable securities were $1.2 billion as of September 30, 2022.

A description of non-GAAP financial measures is contained in the section titled “Explanation of Non-GAAP Financial Measures” below and a reconciliation of GAAP to non-GAAP financial measures is contained in the tables below.

Third Quarter Key Metrics and Recent Business Highlights

  • Number of customers contributing more than $5,000 in ARR was 16,713, an increase of 19% year-over-year and 23% adjusting for constant currency.
  • Net dollar retention rate was 107% and 113% adjusting for constant currency, compared to 111% in the second quarter of 2022 and 117% in the third quarter of 2021.
  • Welcomed new customers to the Freshworks community including: Altasciences, Clark College, Dwyer Instruments LLC, Dynata, HelloFresh, Media.Monks, Plume, Viessmann, and more.
  • Appointed Dennis Woodside as President and member of our Board of Directors.
  • Announced Freshservice for Business Teams to extend IT service management solutions to non-IT departments.
  • Enhanced Freshchat with AI-powered suggestion functionality to help agents improve response time.
  • Added real time lead scoring by embedding artificial intelligence within Freshsales and Freshmarketer.
  • Held our first Global Developer Summit for customers building on the Freshworks Neo Platform.

Financial Outlook

We are providing estimates for the fourth quarter and full year 2022 based on current market conditions and expectations. The revenue growth rates are only adjusted for constant currency to provide better visibility into the underlying business trends. We emphasize that these estimates are subject to various important cautionary factors referenced in the section entitled “Forward-Looking Statements” below.

For the fourth quarter and full year 2022, we currently expect the following results:

($ in millions, except per share data) Fourth Quarter 2022 Full Year 2022
Revenue(1) $129.2 – $131.2 $494.0 – $496.0
Year-over-year growth 22% – 24% 33% – 34%
Adjusting for constant currency(2) 27% – 28% 36% – 37%
     
Non-GAAP loss from operations(1) ($10.5) – ($8.5) ($30.0) – ($28.0)
     
Non-GAAP net loss per share(3) ($0.05) – ($0.03) ($0.13) – ($0.11)

(1) Revenue and non-GAAP loss from operations are based on exchange rates as of October 28, 2022 for currencies other than USD.
(2) Revenue growth rates adjusted for constant currency are based on average exchange rates in effect during the comparison period for currencies other than USD. See the section entitled “Explanation of non-GAAP Financial Measures” and the table entitled “Reconciliation of Selected GAAP Measures to non‑GAAP Measures” for a reconciliation of GAAP to non‑GAAP measures.
(3) Non-GAAP net loss per share was estimated assuming 288.5 million and 284.6 million weighted-average shares outstanding for the fourth quarter and full year 2022, respectively.

These statements are forward-looking and actual results may differ materially. Refer to the “Forward-Looking Statements” safe harbor section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

We have not reconciled our estimates for non-GAAP loss from operations to GAAP loss from operations or non-GAAP net loss per share to GAAP net loss per share due to the uncertainty and potential variability of expenses that may be incurred in the future. Accordingly, a reconciliation is not available without unreasonable effort. We have provided a reconciliation of other GAAP to non-GAAP financial measures in the financial statement tables for our third quarter 2022 non-GAAP results included in this press release.

Webcast and Conference Call Information

We will host a conference call for investors on November 1, 2022 at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time to discuss the company’s financial results and business highlights. Investors are invited to listen to a live audio webcast of the conference call by visiting the investor relations website at ir.freshworks.com. A replay of the audio webcast will be available shortly after the call on the Freshworks Investor Relations website and will be available for twelve months thereafter.

Explanation of Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables contain non-GAAP financial measures, including revenue and revenue growth rates adjusted for constant currency, non-GAAP gross profit, non-GAAP gross margin, non-GAAP sales and marketing expense, non-GAAP research and development expense, non-GAAP general and administrative expense, non-GAAP loss from operations, non-GAAP operating margin, non-GAAP net loss per share, non-GAAP net loss attributable to common stockholders, and free cash flow. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP.

We adjust revenue and related growth rates for constant currency to provide a framework for assessing business performance excluding the effect of foreign currency rate fluctuations. To present this information, current period results for currencies other than USD are converted into USD at the average exchange rates in effect during the comparison period (for Q3 2021, the average exchange rates in effect for our major currencies were 1 USD to 1.18 EUR and 1 USD to 1.38 GBP), rather than the actual average exchange rates in effect during the current period (for Q3 2022, the average exchange rates in effect for our major currencies were 1 USD to 1.01 EUR and 1 USD to 1.18 GBP).

We use these non-GAAP measures in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies and to communicate with our board of directors concerning our financial performance. We believe these non-GAAP measures provide investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of our operating results. We believe these non-GAAP measures are useful in evaluating our operating performance compared to that of other companies in our industry, as they generally eliminate the effects of certain items that may vary for different companies for reasons unrelated to overall operating performance.

Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. The non-GAAP measures we use may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP items excluded from these non-GAAP financial measures.

We exclude the following items from one or more of our non-GAAP financial measures, including the related income tax effect of these adjustments:

  • Stock-based compensation expense. We exclude stock-based compensation, which is a non-cash expense, from certain of our non-GAAP financial measures because we believe that excluding this expense provides meaningful supplemental information regarding operational performance. In particular, stock-based compensation expense is not comparable across companies given the variety of valuation methodologies and assumptions.
  • Employer payroll taxes on employee stock transactions. We exclude the amount of employer payroll taxes on equity awards from certain of our non-GAAP financial measures because they are dependent on our stock price at the time of vesting or exercise and other factors that are beyond our control and do not believe these expenses have a direct correlation to the operation of our business.
  • Amortization of acquired intangibles. We exclude amortization of acquired intangibles, which is a non-cash expense, from certain of our non-GAAP financial measures. Our expenses for amortization of acquired intangibles are inconsistent in amount and frequency because they are significantly affected by the timing, size of acquisitions, and the allocation of purchase price. We exclude these amortization expenses because we do not believe these expenses have a direct correlation to the operation of our business.
  • Gain on sale of non-marketable equity investments. We exclude gains on sale of non-marketable equity investments from certain of our non-GAAP financial measures because we believe they are unrelated to our ongoing operating performance and are not expected to recur in our continuing operating results.

We define free cash flow as net cash provided by operating activities, less purchases of property and equipment and capitalized internal-use software. We believe that free cash flow is a useful indicator of liquidity as it measures our ability to generate cash from our core operations after purchases of property and equipment. Free cash flow is a measure to determine, among other things, cash available for strategic initiatives, including further investments in our business and potential acquisitions of businesses.

Operating Metrics

Number of Customers Contributing More Than $5,000 in ARR. We define ARR as the sum total of the revenue we would contractually expect to recognize over the next 12 months from all customers at a point in time, assuming no increases, reductions or cancellations in their subscriptions. We define our total customers contributing more than $5,000 in ARR as of a particular date as the number of business entities or individuals, represented by a unique domain or a unique email address, with one or more paid subscriptions to one or more of our products that contributed more than $5,000 in ARR.

Net Dollar Retention Rate. To calculate net dollar retention rate as of a given date, we first determine Entering ARR, which is ARR from the population of our customers as of 12 months prior to the end of the reporting period. We then calculate the Ending ARR from the same set of customers as of the end of the reporting period. We then divide the Ending ARR by the Entering ARR to arrive at our net dollar retention rate. Ending ARR includes upsells, cross-sells, and renewals during the measurement period and is net of any contraction or attrition over this period.

We also adjust the above operating metrics and related growth rates for constant currency to provide a framework for assessing our business performance excluding the effects of foreign currency rates fluctuations. To present this information, the Ending ARR of the current period in currencies other than USD is converted into USD at the exchange rates in effect at the end of the comparison period (for Q3 2021, the period end exchange rates in effect for our major currencies were 1 USD to 1.16 EUR and 1 USD to 1.35 GBP), rather than the actual exchange rates in effect at the end of the current period (for Q3 2022, the period end exchange rates in effect for our major currencies were 1 USD to 0.98 EUR and 1 USD to 1.12 GBP).

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, our GAAP and non-GAAP estimates for the fourth quarter and full year 2022, our financial outlook, the value of our products to customers, our ability to drive long-term growth, and the usefulness of the measures by which we evaluate our business, among other things. These forward-looking statements are based on our current expectations, estimates and projections about its business and industry, management’s beliefs and certain assumptions made by the company, all of which are subject to change. Forward-looking statements generally can be identified by the use of forward-looking terminology such as, “future”, “believe,” “expect,” “may,” “will,” “intend,” “estimate,” “continue,” “anticipate,” “could,” “would,” “projects,” “plans,” “targets” or similar expressions or the negative of those terms or expressions. Such statements involve risks and uncertainties, many of which involve factors or circumstances that are beyond our control, which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. Factors that may cause actual results to differ materially include our ability to achieve our long-term plans and key initiatives; our ability to sustain or manage any future growth effectively; our ability to attract and retain customers or expand sales to existing customers; delays in product development or deployments or the success of such products; the failure to deliver competitive service offerings and lack of market acceptance of any offerings delivered; the impact to the economy, our customers and our business due to global economic conditions, including market volatility, foreign exchange rates, and impact of inflation; the timeframes for and severity of the impact of any weakened global economic conditions on our customers’ purchasing and renewal decisions, which may extend the length of our sales cycles or adversely affect our industry; our history of net losses and ability to achieve or sustain profitability, as well as the other potential factors described under “Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, 2021 and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2022 and June 30, 2022, and other documents of Freshworks Inc. we file with the Securities and Exchange Commission from time to time (available at www.sec.gov), including our Quarterly Report on Form 10-Q that will be filed for the quarter ended September 30, 2022.

We caution you not to place undue reliance on forward-looking statements, which speak only as of the date hereof and are based on information available to us at the time the statements are made and/or management’s good faith belief as of that time with respect to future events. We assume no obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release, except as required by law.

About Freshworks Inc.

Freshworks Inc., (NASDAQ: FRSH) makes business software people love to use. Purpose-built for IT, customer support, and sales and marketing teams, our products empower the people who power business. Freshworks is fast to onboard, priced affordably, built to delight, yet powerful enough to deliver critical business outcomes. Headquartered in San Mateo, California, Freshworks operates around the world to serve more than 60,000 customers including Allbirds, Blue Nile, Bridgestone, Databricks, Klarna, NHS, OfficeMax, and PhonePe. For the freshest company news visit www.freshworks.com and follow us on Facebook, LinkedIn and Twitter.

Investor Relations Contact:
Joon Huh
[email protected]
650-988-5699

Media Relations Contact:
Jayne Gonzalez
[email protected]
408-348-1087

© 2022 Freshworks Inc. All Rights Reserved. Freshworks and its associated logo is a trademark of Freshworks Inc. All other company, brand and product names may be trademarks or registered trademarks of their respective companies. Nothing in this press release should be construed to the contrary, or as an approval, endorsement or sponsorship by any first parties of Freshworks Inc. or any aspect of this press release.

FRESHWORKS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)

  Three Months Ended
September 30,
  Nine Months Ended
September 30,
    2022       2021       2022       2021  
Revenue $ 128,760     $ 96,614     $ 364,829     $ 265,542  
Cost of revenue(1)   24,179       22,236       70,616       57,632  
Gross profit   104,581       74,378       294,213       207,910  
Operating expense:              
Research and development(1)   35,871       57,087       100,885       91,377  
Sales and marketing(1)   86,865       96,785       248,369       188,155  
General and administrative(1)   40,133       60,759       117,723       76,785  
Total operating expenses   162,869       214,631       466,977       356,317  
Loss from operations   (58,288 )     (140,253 )     (172,764 )     (148,407 )
Interest and other income, net   2,249       22,923       2,609       23,428  
Loss before income taxes   (56,039 )     (117,330 )     (170,155 )     (124,979 )
Provision for (benefit from) income taxes   1,804       (9,915 )     6,500       (7,720 )
Net loss   (57,843 )     (107,415 )     (176,655 )     (117,259 )
Accretion of redeemable convertible preferred stock         (2,264,838 )           (2,646,662 )
Net loss attributable to common stockholders $ (57,843 )   $ (2,372,253 )   $ (176,655 )   $ (2,763,921 )
Net loss per share attributable to common stockholders – basic and diluted $ (0.20 )   $ (24.72 )   $ (0.62 )   $ (32.96 )
Weighted average shares used in computing net loss per share attributable to common stockholders – basic and diluted   286,697       95,930       283,258       83,860  

______________________
(1)        Includes stock-based compensation expense as follows (in thousands):

  Three Months Ended
September 30,
  Nine Months Ended
September 30,
    2022     2021     2022     2021
Cost of revenue $ 1,772   $ 3,983   $ 5,212   $ 3,983
Research and development   10,318     36,823     26,446     36,823
Sales and marketing   16,635     40,465     44,204     40,465
General and administrative   25,167     42,988     74,790     42,988
Total stock-based compensation expense $ 53,892   $ 124,259   $ 150,652   $ 124,259

FRESHWORKS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)

    September 30,
2022
  December 31, 2021
    (unaudited)    
Assets        
Current assets:        
Cash and cash equivalents   $ 432,313     $ 747,861  
Marketable securities     719,218       575,679  
Accounts receivable, net     56,835       51,756  
Deferred contract acquisition costs     18,282       14,640  
Prepaid expenses and other current assets     42,431       31,440  
Total current assets     1,269,079       1,421,376  
Property and equipment, net     23,381       21,478  
Operating lease right-of-use assets     28,821        
Deferred contract acquisition costs, noncurrent     17,598       15,007  
Intangible assets, net     579       1,894  
Goodwill     6,181       6,181  
Deferred tax assets     5,396       6,284  
Other assets     12,050       10,592  
Total assets   $ 1,363,085     $ 1,482,812  
Liabilities and Stockholders’ Equity        
Current liabilities:        
Accounts payable   $ 3,873     $ 6,321  
Accrued liabilities     57,447       55,829  
Deferred revenue     190,969       160,173  
Income tax payable     65       1,023  
Total current liabilities     252,354       223,346  
Operating lease liabilities, non-current     24,630        
Other liabilities     26,098       21,427  
Total liabilities     303,082       244,773  
Stockholders’ equity:        
Common stock     3       3  
Additional paid-in capital     4,516,386       4,509,724  
Accumulated other comprehensive loss     (8,790 )     (747 )
Accumulated deficit     (3,447,596 )     (3,270,941 )
Total stockholders’ equity     1,060,003       1,238,039  
Total liabilities and stockholders’ equity   $ 1,363,085     $ 1,482,812  

FRESHWORKS INC.
CONDENSED 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 loss $ (57,843 )   $ (107,415 )   $ (176,655 )   $ (117,259 )
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:              
Depreciation and amortization   2,795       3,374       8,574       9,792  
Amortization of deferred contract acquisition costs   4,625       3,416       13,321       9,085  
Non-cash lease expense   1,567             4,463        
Stock-based compensation   53,892       124,259       150,652       124,259  
Premium amortization on marketable securities   (533 )     411       564       1,206  
Gain realized on sale of marketable securities and non-marketable equity investments         (23,821 )           (23,835 )
Change in fair value of equity securities   10       (35 )     (75 )     (100 )
Deferred income taxes         (11,721 )     309       (11,721 )
Other   273       69       1,468       133  
Changes in operating assets and liabilities:              
Accounts receivable   (1,432 )     (3,929 )     (5,256 )     (10,039 )
Deferred contract acquisition costs   (6,913 )     (6,032 )     (19,554 )     (17,032 )
Prepaid expenses and other assets   (3,929 )     (12,963 )     (12,374 )     (14,823 )
Accounts payable   (2,416 )     (4,513 )     (1,962 )     (542 )
Accrued and other liabilities   668       24,193       3,874       18,517  
Deferred revenue   8,173       12,661       30,796       38,975  
Operating lease liabilities   (3,160 )           (7,837 )      
Net cash (used in) provided by operating activities   (4,223 )     (2,046 )     (9,692 )     6,616  
Cash Flows from Investing Activities:              
Purchases of property and equipment   (1,907 )     (1,270 )     (5,288 )     (4,056 )
Proceeds from sale of property and equipment   49       8       132       565  
Capitalized internal-use software   (1,106 )     (873 )     (3,828 )     (3,050 )
Sale of non-marketable equity investments         23,979             23,979  
Purchases of marketable securities   (250,301 )     (43,988 )     (538,501 )     (154,828 )
Sales of marketable securities         2,076       92,786       36,831  
Maturities and redemptions of marketable securities   113,055       30,750       293,625       112,554  
Net cash (used in) provided by investing activities   (140,210 )     10,682       (161,074 )     11,995  
Cash Flows from Financing Activities:              
Proceeds from initial public offering, net of underwriting discounts         1,069,348             1,069,348  
Proceeds from issuance of common stock under employee stock purchase plan, net               7,011        
Proceeds from exercise of stock options   2       12       98       43  
Payment of withholding taxes on net share settlement of equity awards   (13,367 )           (151,716 )      
Payment of deferred offering costs         (3,067 )     (109 )     (5,472 )
Payment of acquisition-related liabilities         (900 )           (900 )
Net cash (used in) provided by financing activities   (13,365 )     1,065,393       (144,716 )     1,063,019  
               
Net (decrease) increase in cash, cash equivalents and restricted cash   (157,798 )     1,074,029       (315,482 )     1,081,630  
Cash, cash equivalents and restricted cash, beginning of period   590,180       105,932       747,864       98,331  
Cash, cash equivalents and restricted cash, end of period $ 432,382     $ 1,179,961     $ 432,382     $ 1,179,961  

FRESHWORKS INC.
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(in thousands, except percentages and per share data)
(unaudited)

    Three Months Ended
September 30,
   
      2022     2021   Growth Rates
Revenue            
GAAP revenue   $ 128,760   $ 96,614   33 %
Effects of foreign currency rate fluctuations     3,428        
Revenue adjusted for constant currency   $ 132,188       37 %

FRESHWORKS INC.
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(in thousands, except percentages and per share data)
(unaudited)

    Three Months Ended
September 30,
  Nine Months Ended
September 30,
      2022       2021       2022       2021  
Reconciliation of gross profit and gross margin:                
GAAP gross profit   $ 104,581     $ 74,378     $ 294,213     $ 207,910  
Non-GAAP adjustments:                
Stock-based compensation expense     1,772       3,983       5,212       3,983  
Employer payroll taxes on employee stock transactions     58       523       25       523  
Amortization of acquired intangibles     175       990       1,015       2,939  
Non-GAAP gross profit   $ 106,586     $ 79,874     $ 300,465     $ 215,355  
GAAP gross margin     81.2 %     77.0 %     80.6 %     78.3 %
Non-GAAP gross margin     82.8 %     82.7 %     82.4 %     81.1 %
                 
Reconciliation of operating expenses:                
GAAP research and development   $ 35,871     $ 57,087     $ 100,885     $ 91,377  
Non-GAAP adjustments:                
Stock-based compensation expense     (10,318 )     (36,823 )     (26,446 )     (36,823 )
Employer payroll taxes on employee stock transactions     (25 )     (1,632 )     127       (1,632 )
Non-GAAP research and development   $ 25,528     $ 18,632     $ 74,566     $ 52,922  
GAAP research and development as percentage of revenue     27.9 %     59.1 %     27.7 %     34.4 %
Non-GAAP research and development as percentage of revenue     19.8 %     19.3 %     20.4 %     19.9 %
                 
GAAP sales and marketing   $ 86,865     $ 96,785     $ 248,369     $ 188,155  
Non-GAAP adjustments:                
Stock-based compensation expense     (16,635 )     (40,465 )     (44,204 )     (40,465 )
Employer payroll taxes on employee stock transactions     (746 )     (4,409 )     (954 )     (4,409 )
Amortization of acquired intangibles     (101 )     (101 )     (300 )     (299 )
Non-GAAP sales and marketing   $ 69,383     $ 51,810     $ 202,911     $ 142,982  
GAAP sales and marketing as percentage of revenue     67.5 %     100.2 %     68.1 %     70.9 %
Non-GAAP sales and marketing as percentage of revenue     53.9 %     53.6 %     55.6 %     53.8 %
                 
GAAP general and administrative   $ 40,133     $ 60,759     $ 117,723     $ 76,785  
Non-GAAP adjustments:                
Stock-based compensation expense     (25,167 )     (42,988 )     (74,790 )     (42,988 )
Employer payroll taxes on employee stock transactions     (165 )     (6,815 )     (457 )     (6,815 )
Non-GAAP general and administrative   $ 14,801     $ 10,956     $ 42,476     $ 26,982  
                 
GAAP general and administrative as percentage of revenue     31.2 %     62.9 %     32.3 %     28.9 %
Non-GAAP general and administrative as percentage of revenue     11.5 %     11.3 %     11.6 %     10.2 %
                 
Reconciliation of operating loss and operating margin:                
GAAP loss from operations   $ (58,288 )   $ (140,253 )   $ (172,764 )   $ (148,407 )
Non-GAAP adjustments:                
Stock-based compensation expense     53,892       124,259       150,652       124,259  
Employer payroll taxes on employee stock transactions     994       13,379       1,309       13,379  
Amortization of acquired intangibles     276       1,091       1,315       3,238  
Non-GAAP loss from operations   $ (3,126 )   $ (1,524 )   $ (19,488 )   $ (7,531 )
GAAP operating margin   (45.3)        %   (145.2)        %   (47.4)        %   (55.9)        %
Non-GAAP operating margin   (2.4)        %   (1.6)        %   (5.3)        %   (2.8)        %
                 
Reconciliation of net loss attributable to common stockholders:                
GAAP net loss attributable to common stockholders – basic and diluted   $ (57,843 )   $ (2,372,253 )   $ (176,655 )   $ (2,763,921 )
Non-GAAP adjustments:                
Accretion of redeemable convertible preferred stock           2,264,838             2,646,662  
Stock-based compensation expense     53,892       124,259       150,652       124,259  
Employer payroll taxes on employee stock transactions     994       13,379       1,309       13,379  
Amortization of acquired intangibles     276       1,091       1,315       3,238  
Gain on sale of non-marketable equity investments           (23,830 )           (23,830 )
Income tax adjustments     565       (11,555 )     1,528       (11,555 )
Non-GAAP net loss attributable to common stockholders – basic and diluted   $ (2,116 )   $ (4,071 )   $ (21,851 )   $ (11,768 )
                 
Reconciliation of net loss per share – basic and diluted:                
GAAP net loss per share attributable to common stockholders – basic and diluted   $ (0.20 )   $ (24.72 )   $ (0.62 )   $ (32.96 )
Non-GAAP adjustments:                
Accretion of redeemable convertible preferred stock           23.61             31.56  
Stock-based compensation expense     0.19       1.29       0.53       1.48  
Employer payroll taxes on employee stock transactions           0.14             0.16  
Amortization of acquired intangibles           0.01             0.04  
Gain on sale of non-marketable equity investments           (0.25 )           (0.28 )
Income tax adjustments           (0.12 )     0.01       (0.14 )
Non-GAAP net loss per share attributable to common stockholders – basic and diluted   $ (0.01 )   $ (0.04 )   $ (0.08 )   $ (0.14 )
Weighted-average shares used in computing GAAP and non-GAAP net loss per share attributable to common stockholders – basic and diluted     286,697       95,930       283,258       83,860  
                 
Computation of free cash flow:                
Net cash (used in) provided by operating activities   $ (4,223 )   $ (2,046 )   $ (9,692 )   $ 6,616  
Less:                
Purchases of property and equipment     (1,907 )     (1,270 )     (5,288 )     (4,056 )
Capitalized internal-use software     (1,106 )     (873 )     (3,828 )     (3,050 )
Free cash flow   $ (7,236 )   $ (4,189 )   $ (18,808 )   $ (490 )
Net cash provided by (used in) investing activities   $ (140,210 )   $ 10,682     $ (161,074 )   $ 11,995  
Net cash provided by (used in) financing activities   $ (13,365 )   $ 1,065,393     $ (144,716 )   $ 1,063,019  

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Artificial Intelligence

XtalPi Unveils XtalGazer: A Comprehensive AI-Driven Polymorph Selection Platform

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CAMBRIDGE, Mass., March 28, 2024 /PRNewswire/ — XtalPi Inc., a leading global technology company in integrating artificial intelligence (AI) and robotics to advance the discovery of groundbreaking medicine and innovative materials, announced today the launch of its proprietary comprehensive solid form discovery and selection platform, XtalGazer. This advanced platform aims to significantly improve the polymorph selection process for the pharmaceutical industry by integrating AI- and automation-powered experimental and computational approaches.

XtalGazer provides a total solution for delivering high-quality polymorph screening and selection methods to expedite drug development and mitigate risks. It represents a paradigm shift in solid-state research, moving from the traditional trial-and-error approach to a data-driven, design-led methodology. The platform provides an expansive suite of foundational tools to accelerate polymorph discovery, characterization, and selection process, empowering pharmaceutical companies to conduct thorough research with less active pharmaceutical ingredient (API) in shorter development cycles.
A key component of XtalGazer is XtalCSP, a crystal structure prediction platform to perform global searches of crystal structures for target molecules and the other optional components in the corresponding searching space, offering a deep insight into possible stable forms. Furthermore, crystallization strategy recommendations will provide AI-backed experimental design to help avoid human bias. XtalGazer also utilizes MicroED to rapidly elucidate crystal structures from powder samples, reducing the need for growing single crystals.
XtalPi’s launch of XtalGazer marks another significant step in the company’s ongoing exploration of solid-state research. From crystal structure prediction platforms being one of the first products to launch at XtalPi, to today’s comprehensive polymorph selection platform, XtalPi will keep fulfilling its promise to solving challenging problems in this space. XtalPi will continue to deliver faster, more accurate, and more comprehensive approaches to building an ecosystem for the R&D process in solid-state, pre-formulation and crystallization.
For more information about XtalPi, please visit www.xtalpi.com.
About XtalPi:
XtalPi is an innovative technology company powered by artificial intelligence (AI) and robotics. Founded in 2015 on the MIT campus, XtalPi is dedicated to driving intelligent and digital transformation in the life science and new materials industries. With tightly interwoven quantum physics, AI, cloud computing, and large-scale clusters of robotic workstations, XtalPi offers a range of technology solutions, services, and products to accelerate and empower innovation for biopharmaceutical and new materials companies worldwide.
Media Contact: Vivienne [email protected]
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Artificial Intelligence

ICIS and Base Oil News Announce Partnership to Enhance Market Insights

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LONDON, March 28, 2024 /PRNewswire/ — ICIS, a global source of commodity intelligence, is pleased to announce a strategic partnership with Base Oil News, a premier news outlet founded by industry expert Iain Pocock that provides in-depth coverage of the base oils and lubricants market. This collaboration marks a significant milestone in the dissemination and exchange of critical market data and insights.

With more than two decades of journalism experience at Bloomberg, Reuters, and Argus Media, Iain Pocock brings unparalleled expertise to this partnership. His deep understanding of illiquid energy markets makes him a credible and influential figure in the industry. Since November 2023, Iain has been working closely with ICIS to share and exchange valuable data and insights, enhancing the services both platforms offer to the base oils and lubricants market.
Through the collaboration, Iain integrates ICIS’ extensive content and data resources in Base Oil News market coverage. In return, he contributes market insights to ICIS News, including expert and exclusive analysis of supply and demand dynamics, price margins, and other critical market drivers. This exchange ensures that subscribers of both ICIS and Base Oil News have access to the most comprehensive, timely, and accurate market information, empowering them to make informed decisions.
“It’s a very exciting partnership – where we leverage each other’s strengths and provide actionable insights to our customers,” said Iain Pocock, Founder of Base Oil News. “The market is the winner.”
“As ICIS is already the world’s most trusted pricing benchmark for base oils, this collaboration with Iain Pocock and Base Oil News provides an even stronger and deeper service to our customers,” said Stephen Burns, Editorial Director at ICIS. “Iain’s expertise and extensive industry connections are invaluable, and we have established a fruitful partnership that benefits the market at large.”
For the latest insights from Iain Pocock on ICIS News, visit ICIS News.  
About ICIS
ICIS – Independent Commodity Intelligence Services – helps businesses through seamlessly delivering data and analytics, across the chemical, fertilizer and energy markets. A trusted source and benchmark for price information and insight across key commodities markets worldwide. Our independent, transparent market intelligence informs thousands of quality decisions every day, taking the pressure out of negotiations and giving customers space for more innovative thinking, through published datasets including price assessments, price forecasts, supply and demand fundamentals and more.
Over 150 years of shaping the world by connecting markets to optimise the world’s valuable resources. With a global team of more than 600 experts, ICIS has employees based in London, New York, Houston, Karlsruhe, Milan, Mumbai, Singapore, Guangzhou, Beijing, Shanghai, Dubai, Sao Paulo, Seoul, Tokyo and Perth.
ICIS is part of RELX, a FTSE15 company with a market cap of £64bn and an employee base of over 30,000 experts across 40 countries.
About RELX
RELX is a global provider of information and analytics for professional and business customers across industries. The Group serves customers in more than 180 countries and has offices in about 40 countries. It employs approximately 30,000 people of whom almost half are in North America. RELX PLC is a London listed holding company which owns 52.9% of RELX Group. RELX NV is an Amsterdam listed holding company which owns 47.1% of RELX Group. The shares are traded on the London, Amsterdam and New York Stock Exchanges using the following ticker symbols: London: REL; Amsterdam: REN; New York: RELX and RENX. Total market capitalisation is approximately £64bn | €75bn | $81bn.
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Artificial Intelligence

Trianz Welcomes Israel Abraham as Vice President of Services for Extrica.ai – The Data to AI Platform

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SANTA CLARA, Calif., March 28, 2024 /PRNewswire/ — Digital transformation technology & services company Trianz is pleased to announce the appointment of Israel Abraham as Vice President of Extrica Platform Services.

Trianz has embarked on a transformative journey, redefining its value proposition with an ‘IP Led’ model, with a commitment to deliver the fastest time to value, lowest human dependence, and highest ROI. Central to this approach are our hyper-automated platforms, Concierto.Cloud, Extrica.AI, and Pulse, driving industry-leading transformations in cloud, data and analytics, AI, and the digital workplace.
Israel Abraham is a very well-known pioneer and industry leader in AI, data management, and analytics systems, with over three decades of experience. He joins as the services leader for Extrica- the Trianz Data to AI platform, which productizes data, provides data a face and purpose, and accelerates time to insights and AI by 50% or more. In the role of Extrica Services leader, Israel will lead the shaping, visioning, and delivery of Extrica.ai based enterprise wide datamesh, BI, and AI solutions for customers worldwide.
“We are thrilled to welcome Israel Abraham to the Trianz family,” said Sri Manchala, CEO of Trianz and author of Crossing the Digital Faultline. “He is a leader in modernization as well as conceptualization of data platforms anew. Israel’s prior background in the industry with financial services and insurance giants underscores our commitment to securing top-tier talent that brings real-world experiences and needs to our technology platforms. As we continue to broaden our footprint in the digital transformation space, Israel’s visionary leadership and practical experience will serve as the cornerstone in accelerating insights and AI to deliver transformative value to our clients.”
Having played pivotal roles in highly reputed and large organizations such as Liberty Mutual Insurance, MassMutual, Safeco, and CNA Insurance, Israel has garnered recognition as a seasoned leader in big data and AI cloud implementations. His accolades include the prestigious 2014 Ventana Research IT Innovation Award, the 2009 Informatica MDM Innovation Award, and three filed Data Engineering patents in the last four years.
“Trianz has been at the forefront of digital innovation, and Extrica.ai is a paradigm shifting data to AI platform that completely changes how analytics and AI are delivered- much faster, taking business ahead of change. I am excited to scale the adoption of the Extrica platform, which has attracted attention from giants across the industry and hyperscalers,” said Israel Abraham. “I look forward to engaging with customers, bringing my own experiences, and collaborating with the talented team at Trianz to further enhance the capabilities of the Extrica Platform Services to transform data & AI strategies, execution, and outcomes for customers.”
About Trianz
Trianz is a leading-edge technology platforms and services company that accelerates digital transformations at Fortune 100 and emerging companies worldwide in data & analytics, digital experiences, cloud infrastructure, and security. Our ‘IP Led Transformations’ approach, informed by insights from a recent global study spanning 20+ industries and 5000+ companies, addresses challenges posed by the rapid pace of AI-driven transformation, digital talent scarcity, and economic uncertainty. Our IP and platforms, including Concierto, Extrica, and Pulse, revolutionize cloud adoption, data analytics, and AI insights, empowering organizations to navigate the complexities of digital transformation seamlessly.
Founded in California and with an organization of over 2,000 associates across the United States and India, Trianz is a Premier Partner of AWS, consistently rated #1 by clients for value delivery over the past five years. Trianz has been ranked as one of the best Consulting Firms by Forbes and has been certified as a Great Place to Work for three years in a row. To learn more about Trianz, email [email protected] or visit www.trianz.com.
Watch Trianz CEO Sri Manchala’s insightful interview with Bloomberg on Partner | Crossing The Digital Faultline & Leading Towards Transformative Success – YouTube and delve deeper into his book Crossing the Digital Faultline at Crossing the Digital Faultline | Trianz.
Trianz Media [email protected] +1-408-387-5800
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