2021 Q3 Form 10-K Financial Statement

#000171368321000175 Filed on September 16, 2021

View on sec.gov

Income Statement

Concept 2021 Q3 2021 2020 Q3
Revenue $197.1M $673.1M $125.9M
YoY Change 56.53% 56.07% 46.23%
Cost Of Revenue $45.48M $150.3M $31.40M
YoY Change 44.83% 57.02% 81.5%
Gross Profit $151.6M $522.8M $94.50M
YoY Change 60.42% 55.81% 37.35%
Gross Profit Margin 76.92% 77.67% 75.06%
Selling, General & Admin $162.7M $555.9M $106.6M
YoY Change 52.63% 58.11% 88.67%
% of Gross Profit 107.33% 106.34% 112.8%
Research & Development $56.18M $174.7M $32.80M
YoY Change 71.28% 78.44% 94.08%
% of Gross Profit 37.06% 33.41% 34.71%
Depreciation & Amortization $10.33M $36.46M $6.770M
YoY Change 52.56% 72.7% 89.64%
% of Gross Profit 6.81% 6.97% 7.16%
Operating Expenses $219.0M $730.6M $139.4M
YoY Change 57.1% 62.54% 89.15%
Operating Profit -$67.40M -$207.8M -$44.90M
YoY Change 50.1% 82.36% 816.33%
Interest Expense -$13.11M $53.36M -$4.000M
YoY Change 227.75% 961.97% -290.48%
% of Operating Profit
Other Income/Expense, Net $329.0K $1.186M -$300.0K
YoY Change -209.67% -629.46% 50.0%
Pretax Income -$80.18M -$257.2M -$49.10M
YoY Change 63.3% 128.14% 718.33%
Income Tax $845.0K $4.851M $500.0K
% Of Pretax Income
Net Earnings -$81.02M -$262.0M -$49.50M
YoY Change 63.68% 127.62% 833.96%
Net Earnings / Revenue -41.11% -38.93% -39.32%
Basic Earnings Per Share -$1.93
Diluted Earnings Per Share -$588.0K -$1.93 -$375.9K
COMMON SHARES
Basic Shares Outstanding 138.7M shares 135.7M shares 132.9M shares
Diluted Shares Outstanding 135.7M shares

Balance Sheet

Concept 2021 Q3 2021 2020 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.503B $1.503B $1.371B
YoY Change 9.63% 9.63% 275.86%
Cash & Equivalents $275.9M $275.9M $141.9M
Short-Term Investments $1.227B $1.227B $1.229B
Other Short-Term Assets $88.64M $88.64M $63.60M
YoY Change 39.37% 39.37% 66.93%
Inventory
Prepaid Expenses
Receivables $257.1M $257.1M $147.6M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $1.848B $1.848B $1.582B
YoY Change 16.85% 16.85% 218.85%
LONG-TERM ASSETS
Property, Plant & Equipment $108.6M $152.9M $75.73M
YoY Change 43.36% 36.65% 84.51%
Goodwill $58.98M $30.06M
YoY Change 96.2% 301.91%
Intangibles
YoY Change
Long-Term Investments $5.100M
YoY Change 155.0%
Other Assets $15.65M $160.2M $8.054M
YoY Change 94.31% 91.41% 253.71%
Total Long-Term Assets $409.3M $409.3M $251.7M
YoY Change 62.65% 62.63% 132.86%
TOTAL ASSETS
Total Short-Term Assets $1.848B $1.848B $1.582B
Total Long-Term Assets $409.3M $409.3M $251.7M
Total Assets $2.258B $2.258B $1.833B
YoY Change 23.14% 23.13% 203.47%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $12.55M $12.55M $5.233M
YoY Change 139.77% 141.29% -15.71%
Accrued Expenses $136.4M $136.4M $81.40M
YoY Change 67.53% 67.53% 136.63%
Deferred Revenue $571.3M $337.3M
YoY Change 69.39% 52.34%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $720.2M $720.2M $423.9M
YoY Change 69.9% 69.9% 61.83%
LONG-TERM LIABILITIES
Long-Term Debt $913.5M $913.5M $861.6M
YoY Change 6.03% 6.03%
Other Long-Term Liabilities $4.453M $94.99M $2.586M
YoY Change 72.2% 50.54% -32.66%
Total Long-Term Liabilities $4.453M $1.009B $2.586M
YoY Change 72.2% 9.07% -32.66%
TOTAL LIABILITIES
Total Short-Term Liabilities $720.2M $720.2M $423.9M
Total Long-Term Liabilities $4.453M $1.009B $2.586M
Total Liabilities $1.729B $1.729B $1.349B
YoY Change 28.18% 28.19% 356.23%
SHAREHOLDERS EQUITY
Retained Earnings -$601.6M -$339.6M
YoY Change 77.16% 51.29%
Common Stock $139.0K $133.0K
YoY Change 4.51% 4.72%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $528.9M $528.9M $484.8M
YoY Change
Total Liabilities & Shareholders Equity $2.258B $2.258B $1.833B
YoY Change 23.14% 23.13% 203.47%

Cashflow Statement

Concept 2021 Q3 2021 2020 Q3
OPERATING ACTIVITIES
Net Income -$81.02M -$262.0M -$49.50M
YoY Change 63.68% 127.62% 833.96%
Depreciation, Depletion And Amortization $10.33M $36.46M $6.770M
YoY Change 52.56% 72.7% 89.64%
Cash From Operating Activities $44.74M $202.0M $31.64M
YoY Change 41.39% 154.72% 77.45%
INVESTING ACTIVITIES
Capital Expenditures -$17.03M $48.17M -$20.72M
YoY Change -17.78% 11.82% 101.75%
Acquisitions $40.53M
YoY Change 2.35%
Other Investing Activities $120.2M -$51.37M -$998.0M
YoY Change -112.04% -94.79% -53184.04%
Cash From Investing Activities $103.1M -$109.7M -$1.019B
YoY Change -110.12% -89.44% 12041.84%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $0.00
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 21.45M $41.68M 1.004B
YoY Change -97.86% -95.92% 7032.95%
NET CHANGE
Cash From Operating Activities 44.74M $202.0M 31.64M
Cash From Investing Activities 103.1M -$109.7M -1.019B
Cash From Financing Activities 21.45M $41.68M 1.004B
Net Change In Cash 169.3M $134.0M 17.26M
YoY Change 880.93% 111.54% -26.62%
FREE CASH FLOW
Cash From Operating Activities $44.74M $202.0M $31.64M
Capital Expenditures -$17.03M $48.17M -$20.72M
Free Cash Flow $61.77M $153.9M $52.36M
YoY Change 17.97% 324.54% 86.33%

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CY2019 us-gaap Payments Of Stock Issuance Costs
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CY2020 us-gaap Proceeds From Convertible Debt
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CY2021 zs Payments For Capped Call
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CY2020 zs Payments For Capped Call
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CY2021 us-gaap Payments For Repurchase Of Common Stock
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CY2020 us-gaap Payments For Repurchase Of Common Stock
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CY2019 us-gaap Payments For Repurchase Of Common Stock
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CY2021 zs Proceeds From Repayment Of Notes Receivable Stockholders
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CY2019 zs Proceeds From Repayment Of Notes Receivable Stockholders
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CY2021 us-gaap Net Cash Provided By Used In Financing Activities
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CY2019 us-gaap Interest Paid Net
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CY2021 zs Net Change In Capital Expenditures Included In Liabilities
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CY2020 us-gaap Net Cash Provided By Used In Financing Activities
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CY2019 us-gaap Net Cash Provided By Used In Financing Activities
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CY2020Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2019Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2021 us-gaap Income Taxes Paid Net
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CY2020 us-gaap Income Taxes Paid Net
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CY2019 us-gaap Income Taxes Paid Net
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CY2021 us-gaap Interest Paid Net
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CY2020 us-gaap Interest Paid Net
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CY2020 zs Net Change In Capital Expenditures Included In Liabilities
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CY2019 zs Net Change In Capital Expenditures Included In Liabilities
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CY2020 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
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CY2019 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
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CY2021 us-gaap Stock Issued1
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StockIssued1
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StockIssued1
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CY2021 zs Deferred Offering Costs Accrued But Not Paid
DeferredOfferingCostsAccruedButNotPaid
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CY2020 zs Deferred Offering Costs Accrued But Not Paid
DeferredOfferingCostsAccruedButNotPaid
0 USD
CY2019 zs Deferred Offering Costs Accrued But Not Paid
DeferredOfferingCostsAccruedButNotPaid
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CY2021 us-gaap Fiscal Period
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<div style="margin-bottom:9pt;margin-top:6pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:144%">Fiscal Year </span></div><div style="margin-bottom:9pt;margin-top:12pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:144%">Our fiscal year ends on July 31. References to fiscal 2021, for example, refer to our fiscal year ended July 31, 2021.</span></div>
CY2021 us-gaap Use Of Estimates
UseOfEstimates
<div style="margin-bottom:9pt;margin-top:18pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:144%">Use of Estimates </span></div><div style="margin-top:6pt;text-align:justify;text-indent:25pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:144%">The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying notes. Such estimates include, but are not limited to, the determination of revenue recognition, deferred revenue, deferred contract acquisition costs, valuation of acquired intangible assets, period of benefit generated from our deferred contract acquisition costs, allowance for doubtful accounts, valuation of common stock options and stock-based awards, useful lives of property and equipment, useful lives of acquired intangible assets, recoverability of goodwill, valuation of deferred tax assets and liabilities, loss contingencies related to litigation, fair value and effective interest rate of convertible senior notes, valuation of non-marketable equity investments and the discount rate used for operating leases. Management determines these estimates and assumptions based on historical experience and on various other assumptions that are believed to be reasonable. Actual results could differ significantly from these estimates, and such differences may be material to the consolidated financial statements.</span></div><div style="margin-bottom:9pt;margin-top:6pt;text-align:justify;text-indent:25pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:144%">Due to the COVID-19 pandemic, there is ongoing uncertainty and significant disruption in the global economy and financial markets. We are not aware of any specific event or circumstances that would require an update to our estimates, judgments or assumptions or a revision to the carrying value of our assets or liabilities as of the date of issuance of these consolidated financial statements. These estimates, judgments and assumptions may change in the future, as new events occur or additional information is obtained.</span></div>
CY2021 us-gaap Concentration Risk Credit Risk
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<div style="margin-bottom:9pt;margin-top:6pt;text-align:justify;text-indent:24.75pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:144%">Concentration of Risks </span></div><div style="margin-bottom:9pt;margin-top:12pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:144%">We generate revenue primarily from sale of subscriptions to access our cloud platform, together with related support services. Our sales team, along with our channel partner network of global telecommunications service providers, system integrators and value-added resellers (collectively "channel partners"), sells our services worldwide to organizations of all sizes. Due to the nature of our services and the terms and conditions of our contracts with our channel partners, our business could be affected unfavorably if we are not able to continue our relationships with them. </span></div><div style="margin-bottom:9pt;margin-top:12pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:144%">Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash, cash equivalents, short-term investments and accounts receivable. Although we deposit our cash with multiple financial institutions, the deposits, at times, may exceed federally insured limits. Cash equivalents and short-term investments consist of highly liquid investments in money market funds, U.S. treasury, U.S. agency securities and corporate debt securities, which are invested through financial institutions in the United States.</span></div><div style="margin-bottom:9pt;margin-top:12pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:144%">We grant credit to our customers in the normal course of business. We monitor the financial condition of our customers to reduce credit risk. Refer to Note 2, Revenue Recognition, for information regarding customers with concentration of 10% or more of the total balance of accounts receivable, net.</span></div>
CY2021 us-gaap Number Of Reportable Segments
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1 segment
CY2021 us-gaap Number Of Operating Segments
NumberOfOperatingSegments
1 segment
CY2021 us-gaap Other Than Temporary Impairment Loss Debt Securities Available For Sale
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0 USD
CY2019 us-gaap Other Than Temporary Impairment Loss Debt Securities Available For Sale
OtherThanTemporaryImpairmentLossDebtSecuritiesAvailableForSale
0 USD
CY2020 us-gaap Other Than Temporary Impairment Loss Debt Securities Available For Sale
OtherThanTemporaryImpairmentLossDebtSecuritiesAvailableForSale
0 USD
CY2021Q3 us-gaap Capitalized Computer Software Gross
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16500000 USD
CY2020Q3 us-gaap Capitalized Computer Software Gross
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13200000 USD
CY2019Q3 us-gaap Capitalized Computer Software Gross
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3700000 USD
CY2021Q3 us-gaap Capitalized Computer Software Accumulated Amortization
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5900000 USD
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<div style="margin-top:6pt;text-align:justify;text-indent:24.75pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:144%">Warranties and Indemnification</span></div><div style="margin-bottom:9pt;margin-top:12pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:144%">Our cloud platform is generally warranted to be free of defects under normal use and to perform substantially in accordance with the subscription agreement. Additionally, our contracts generally include provisions for indemnifying customers and channel partners against liabilities if our services infringe or misappropriate a third party’s intellectual property rights. Costs and liabilities incurred as a result of warranties and indemnification obligations were not material during the periods presented.</span></div>
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CY2021Q3 us-gaap Deferred Tax Liabilities Leasing Arrangements
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111853000 USD

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