2024 Q2 Form 10-Q Financial Statement

#000147733324000070 Filed on August 01, 2024

View on sec.gov

Income Statement

Concept 2024 Q2
Revenue $401.0M
YoY Change 29.99%
Cost Of Revenue $89.01M
YoY Change 18.33%
Gross Profit $312.0M
YoY Change 33.74%
Gross Profit Margin 77.8%
Selling, General & Admin $244.1M
YoY Change 22.17%
% of Gross Profit 78.25%
Research & Development $102.5M
YoY Change 14.44%
% of Gross Profit 32.87%
Depreciation & Amortization $26.30M
YoY Change -21.9%
% of Gross Profit 8.43%
Operating Expenses $346.7M
YoY Change 19.78%
Operating Profit -$34.70M
YoY Change -38.23%
Interest Expense $20.50M
YoY Change 36.67%
% of Operating Profit
Other Income/Expense, Net $20.77M
YoY Change -1459.92%
Pretax Income -$13.93M
YoY Change -85.02%
Income Tax $1.100M
% Of Pretax Income
Net Earnings -$15.08M
YoY Change -84.04%
Net Earnings / Revenue -3.76%
Basic Earnings Per Share -$0.04
Diluted Earnings Per Share -$0.04
COMMON SHARES
Basic Shares Outstanding 340.6M shares
Diluted Shares Outstanding 340.6M shares

Balance Sheet

Concept 2024 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.757B
YoY Change 10.9%
Cash & Equivalents $157.0M
Short-Term Investments $1.600B
Other Short-Term Assets $72.49M
YoY Change 54.74%
Inventory
Prepaid Expenses
Receivables $250.2M
Other Receivables $0.00
Total Short-Term Assets $2.093B
YoY Change 15.12%
LONG-TERM ASSETS
Property, Plant & Equipment $339.1M
YoY Change -19.89%
Goodwill $156.2M
YoY Change 5.54%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $18.48M
YoY Change -84.74%
Total Long-Term Assets $823.7M
YoY Change 15.17%
TOTAL ASSETS
Total Short-Term Assets $2.093B
Total Long-Term Assets $823.7M
Total Assets $2.917B
YoY Change 15.14%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $59.53M
YoY Change 83.86%
Accrued Expenses $165.5M
YoY Change 21.01%
Deferred Revenue $371.0M
YoY Change 38.43%
Short-Term Debt $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $596.0M
YoY Change 25.97%
LONG-TERM LIABILITIES
Long-Term Debt $1.285B
YoY Change 0.31%
Other Long-Term Liabilities $17.73M
YoY Change -87.04%
Total Long-Term Liabilities $17.73M
YoY Change -98.75%
TOTAL LIABILITIES
Total Short-Term Liabilities $596.0M
Total Long-Term Liabilities $17.73M
Total Liabilities $2.035B
YoY Change 7.6%
SHAREHOLDERS EQUITY
Retained Earnings -$1.074B
YoY Change 10.49%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $881.5M
YoY Change
Total Liabilities & Shareholders Equity $2.917B
YoY Change 15.14%

Cashflow Statement

Concept 2024 Q2
OPERATING ACTIVITIES
Net Income -$15.08M
YoY Change -84.04%
Depreciation, Depletion And Amortization $26.30M
YoY Change -21.9%
Cash From Operating Activities $74.82M
YoY Change 16.08%
INVESTING ACTIVITIES
Capital Expenditures $36.54M
YoY Change -17.85%
Acquisitions
YoY Change
Other Investing Activities -$147.2M
YoY Change -430.13%
Cash From Investing Activities -$183.7M
YoY Change -170231.48%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 9.291M
YoY Change -105.51%
NET CHANGE
Cash From Operating Activities 74.82M
Cash From Investing Activities -183.7M
Cash From Financing Activities 9.291M
Net Change In Cash -99.64M
YoY Change -4.24%
FREE CASH FLOW
Cash From Operating Activities $74.82M
Capital Expenditures $36.54M
Free Cash Flow $38.28M
YoY Change 91.66%

Facts In Submission

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cloud Supplemental Noncash Investing And Financing Items Maturity Of Marketable Securities In Other Current Assets
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us-gaap Fiscal Period
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The Company’s fiscal year ends on December 31.
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<div style="margin-bottom:6pt;margin-top:18pt;text-indent:36pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Use of Estimates</span></div><div style="margin-top:6pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the condensed consolidated financial statements and accompanying notes to the condensed consolidated financial statements. Such estimates include, but are not limited to, allowance for doubtful accounts, deferred contract acquisitions costs, the period of benefit generated from the Company’s deferred contract acquisition costs, the capitalization and estimated useful life of internal-use software, valuation of acquired intangible assets, the assessment of recoverability of intangible assets and their estimated useful lives, useful lives of property and equipment, the determination of the incremental borrowing rate used for operating lease liabilities, the valuation and recognition of stock-based compensation awards, uncertain tax positions, and the recognition and measurement of current and deferred income tax assets and liabilities. Management bases these estimates and assumptions on historical experience and on various other assumptions that are believed to be reasonable. Due in part to the Hamas-Israel </span></div><div style="margin-top:6pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">and Russia-Ukraine conflicts, the potential worsening and expansion of such conflicts, and other macroeconomic and geopolitical conditions, there is ongoing uncertainty and significant disruption in the global economy and financial markets. The Company is not aware of any specific event or circumstance that would require an update to its estimates or assumptions or a revision of the carrying value of its assets or liabilities as of August 1, 2024, the date of issuance of this Quarterly Report on Form 10-Q. These estimates and assumptions may change in the future, however, as new events occur and additional information is obtained. Actual results could differ materially from these estimates.</span></div><div style="margin-bottom:6pt;margin-top:18pt;text-indent:36pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Change in Accounting Estimate</span></div><div style="margin-top:6pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In January 2024, the Company completed an assessment of the useful lives of our servers-network infrastructure, resulting in a change in the estimated useful lives of our servers-network infrastructure from four years to five years. This change in accounting estimate was effective beginning fiscal year 2024. Based on the carrying value of assets in service as of December 31, 2023, the change resulted in a reduction of depreciation expense of $11.9 million for the six months ended June 30, 2024, recorded primarily in cost of revenue.</span></div>
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CY2023Q4 us-gaap Accumulated Other Comprehensive Income Loss Available For Sale Securities Adjustment Net Of Tax
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CY2024Q2 us-gaap Allowance For Doubtful Accounts Receivable Current
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CY2023Q4 us-gaap Allowance For Doubtful Accounts Receivable Current
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CY2023Q2 cloud Provision For Doubtful Accounts Excluding Pay As You Go Customers
ProvisionForDoubtfulAccountsExcludingPayAsYouGoCustomers
4400000 usd
cloud Provision For Doubtful Accounts Excluding Pay As You Go Customers
ProvisionForDoubtfulAccountsExcludingPayAsYouGoCustomers
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cloud Provision For Doubtful Accounts Excluding Pay As You Go Customers
ProvisionForDoubtfulAccountsExcludingPayAsYouGoCustomers
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CY2023Q2 us-gaap Allowance For Doubtful Accounts Receivable Write Offs
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us-gaap Allowance For Doubtful Accounts Receivable Write Offs
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us-gaap Allowance For Doubtful Accounts Receivable Write Offs
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CY2024Q2 us-gaap Property Plant And Equipment Gross
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CY2024Q2 us-gaap Property Plant And Equipment Net
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CY2024Q2 us-gaap Depreciation
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us-gaap Depreciation
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us-gaap Depreciation
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CY2024Q2 us-gaap Goodwill
Goodwill
156200000 usd
CY2023Q4 us-gaap Goodwill
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us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
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us-gaap Goodwill Impairment Loss
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CY2024Q2 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
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CY2024Q2 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
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CY2024Q2 us-gaap Finite Lived Intangible Assets Net
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CY2023Q4 us-gaap Finite Lived Intangible Assets Gross
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CY2023Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
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CY2023Q4 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
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CY2023Q2 us-gaap Amortization Of Intangible Assets
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4900000 usd
us-gaap Amortization Of Intangible Assets
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7200000 usd
us-gaap Amortization Of Intangible Assets
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9800000 usd
CY2024Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Remainder Of Fiscal Year
FiniteLivedIntangibleAssetsAmortizationExpenseRemainderOfFiscalYear
4833000 usd
CY2024Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Next Twelve Months
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CY2024Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Year Two
FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo
3053000 usd
CY2024Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Year Three
FiniteLivedIntangibleAssetsAmortizationExpenseYearThree
1450000 usd
CY2024Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Year Four
FiniteLivedIntangibleAssetsAmortizationExpenseYearFour
1450000 usd
CY2024Q2 cloud Finite Lived Intangible Asset Expected Amortization After Year Four
FiniteLivedIntangibleAssetExpectedAmortizationAfterYearFour
1812000 usd
CY2024Q2 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
21663000 usd
CY2024Q2 us-gaap Lessee Operating Lease Remaining Lease Term
LesseeOperatingLeaseRemainingLeaseTerm
P7Y1M6D
CY2024Q2 us-gaap Operating Lease Cost
OperatingLeaseCost
11261000 usd
CY2023Q2 us-gaap Operating Lease Cost
OperatingLeaseCost
10864000 usd
us-gaap Operating Lease Cost
OperatingLeaseCost
23124000 usd
us-gaap Operating Lease Cost
OperatingLeaseCost
21925000 usd
CY2023Q2 us-gaap Lease Cost
LeaseCost
10864000 usd
us-gaap Lease Cost
LeaseCost
23124000 usd
us-gaap Lease Cost
LeaseCost
21925000 usd
CY2024Q2 us-gaap Unrecorded Unconditional Purchase Obligation Balance Sheet Amount
UnrecordedUnconditionalPurchaseObligationBalanceSheetAmount
54700000 usd
CY2024Q2 us-gaap Lessee Operating Lease Lease Not Yet Commenced Term Of Contract1
LesseeOperatingLeaseLeaseNotYetCommencedTermOfContract1
P4Y3M18D
CY2024Q2 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P4Y8M12D
CY2024Q2 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.047
CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Remainder Of Fiscal Year
LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear
26887000 usd
CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
38238000 usd
CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
34707000 usd
CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
30378000 usd
CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Four
LesseeOperatingLeaseLiabilityPaymentsDueYearFour
17378000 usd
CY2024Q2 cloud Lessee Operating Lease Liability To Be Paid After Year Four
LesseeOperatingLeaseLiabilityToBePaidAfterYearFour
22535000 usd
CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
170123000 usd
CY2024Q2 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
16875000 usd
CY2024Q2 us-gaap Operating Lease Liability
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153248000 usd
CY2024Q2 us-gaap Common Stock Capital Shares Reserved For Future Issuance
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120260000 shares
CY2023Q4 us-gaap Common Stock Capital Shares Reserved For Future Issuance
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104014000 shares
CY2024Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
4000000.0 shares
CY2024Q2 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
85991000 usd
CY2023Q2 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
68392000 usd
us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
155714000 usd
us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
125793000 usd
us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
27498000 shares
us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
33593000 shares
CY2024Q2 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
1100000 usd
CY2023Q2 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
1500000 usd
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
3400000 usd
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
2800000 usd
CY2024Q2 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
1100000 usd
CY2023Q2 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
1500000 usd
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
3400000 usd
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
2800000 usd
CY2024Q2 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
339124000 usd
CY2023Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
322813000 usd
CY2024Q2 ecd Non Rule10b51 Arr Adopted Flag
NonRule10b51ArrAdoptedFlag
false
CY2024Q2 ecd Rule10b51 Arr Adopted Flag
Rule10b51ArrAdoptedFlag
false
CY2024Q2 ecd Non Rule10b51 Arr Trmntd Flag
NonRule10b51ArrTrmntdFlag
false
CY2024Q2 ecd Rule10b51 Arr Trmntd Flag
Rule10b51ArrTrmntdFlag
false

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