What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2021-08-06 compared with 2021-05-12 · 119 added, 67 removed, 317 unchanged (37% of the section changed)

8 unchanged sentences

We power both our customers’ branded ecommerce stores and their cross-channel connections to popular online marketplaces, social networks, and offline POS systems.

As of March 31, 2021, we served approximately 59,000 online stores across industries in approximately 153 countries.

As of June 30, 2021, we served approximately 58,000 online stores across industries in approximately 147 countries.

We provide a comprehensive platform for launching and scaling an ecommerce operation, including store design, catalog management, hosting, checkout, order management, reporting, and pre-integration into third-party services like payments, shipping, and accounting.

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As a result, we earn high-margin revenue share from a subset of our strategic technology partners, which complements the high gross margin of our core ecommerce platform.

Our business has achieved significant growth since our inception.

We had total revenues of $152.4 million, $112.1 million and $91.9 million in 2020, 2019 and 2018, respectively.

We plan to continue to invest in our “Open SaaS” strategy, building new partnerships and continuing to develop a platform that offers best-of-breed functionality with the cost-effectiveness of multi-tenant SaaS.

As we work to develop and deliver this platform for our customers, we will also invest and grow our business by acquiring additional customers to our platform, growing our revenue with existing customers, and expanding our presence in new segments and geographies.

As we work to develop and deliver this platform for our customers, we will also invest and grow our business by acquiring additional customers to our platform, growing our revenue with existing customers, expanding our presence in new segments and geographies, and potential acquisitions that would synergize and expand our current product offering.

As a result of the global travel restrictions and stay-at-home or similar orders in effect due to the COVID-19 pandemic, our sales and marketing, research and development, and general and administrative expenses declined as a percentage of revenue in the year ended December 31, 2020.

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The Secondary Offering resulted in net proceeds of $65.1 million after deducting underwriting discounts, commissions and other offering costs.

Existing stockholders sold an additional 4,750,000 shares of Series 1 common stock,

including 750,000 shares of Series 1 common stock that were sold pursuant to the exercise in full of the underwriters’ option to purchase additional shares of Series 1 common stock at $68.00 per share.

Existing stockholders sold an additional 4,750,000 shares of Series 1 common stock, including 750,000 shares of Series 1 common stock that were sold pursuant to the exercise in full of the underwriters’ option to

purchase additional shares of Series 1 common stock at $68.00 per share.

We did not receive any proceeds from the sale of shares by the selling stockholders in the Secondary Offering.

Additionally, upon completion of the Secondary Offering, we fully repaid approximately $22 million of our outstanding indebtedness under our Credit Facility.

On July 23, 2021, we entered into an asset purchase agreement to acquire substantially all the assets and liabilities of Feedonomics LLC.

Purchase consideration consisted of approximately $145.0 million with $80.0 million paid upon closing and up to $65.0 million in two annual installments of up to $32.5 million each to be paid upon each of the first and second anniversaries of closing or upon the earlier achievement of certain milestones.

The anniversary payments may be paid in shares of our Series 1 common stock or cash based on our discretion.

Key factors affecting our performance

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Pre-built integrations connect our platform with leading CMSs such as Acquia, Adobe, Bloomreach, Drupal, Sitecore, and WordPress.

As of March 31, 2021, approximately 7.3% of our customers use BigCommerce primarily for B2B sales.

Since the release of our B2B edition, we have seen a growing interest from B2B customers for our platform.

In many cases, these customers’ needs are met using our native functionality, including B2B features like customer groups and price lists.

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Our ability to retain and grow our customers’ ecommerce businesses often depends on the continued expansion of our platform and the capabilities of our strategic technology partners to provide revenue generating services to our customers.

We continually evaluate

prospective and existing partners’ abilities to enhance the capabilities of our customers’ ecommerce businesses.

We continually evaluate prospective and existing partners’ abilities to enhance the capabilities of our customers’ ecommerce businesses.

We add new partners and expand existing partner relationships to enhance the utility of our platform, while creating new opportunities to expand our revenue share in partner and services revenue.

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We support the growth of mid-market and large enterprise customers around the world by expanding our regional sales and marketing capabilities.

We opened our first European office in London, UK in 2018 and expanded it throughout 2019 and 2020, resulting in a 68% and 20% revenue growth rate in EMEA for the years ended December 31, 2020 and 2019, respectively.

Similarly, we expanded our existing sales and marketing team in Sydney, Australia, resulting in a 38% and 28% revenue growth rate in APAC for the years ended December 31, 2020 and 2019, respectively.

We opened our first European office in London, UK in 2018 and expanded it throughout 2019-2021.

In EMEA, revenue grew 73% for the six-months ended June 30, 2021.

Similarly, we expanded our existing sales and marketing team in Sydney, Australia, resulting in a 49% revenue growth rate in APAC for the six-months ended June 30, 2021.

2020 brought marked advancements in our international expansion strategy through the launch of new country-specific websites in France, Italy, the Netherlands, and more recently in Mexico, Germany and Spain.

In July of 2021, we launched a partnership with Mercado Libre to power cross-border growth giving our merchants the ability to sell across Latin America to nearly 133 million unique consumers in Mercado Libre’s Marketplace.

We continue to invest in our global presence and in offering native language web experiences that further strengthen our ability to connect more directly with prospects and customers in each region.

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These accounts may have more than one Enterprise plan or a combination of Enterprise plans and Essentials plans.

The chart below illustrates certain of our key business metrics as of the periods ended:

The chart below illustrates certain of our key busine ss metrics as of the periods ended:

September 30,

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We expect to continue to make substantial investments in research and development.

We expect our research and development expenses t o increase in absolute dollars, but decrease as a percentage of total revenue over time, as we continue to leverage and expand our lower-cost engineering center in Kyiv, Ukraine.

We expect our research and development expenses to increase in absolute dollars, but decrease as a percentage of total revenue over time, as we continue to leverage and expand our lower-cost engineering center in Kyiv, Ukraine.

We expense research and development expenses as incurred.

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As a result, we expect that our general and administrative expenses will increase in absolute dollars but may fluctuate as a percentage of total revenue from period to period.

Acquisition related expenses

Acquisition related expenses consists primarily of cash payments for third-party acquisition costs, other acquisition related expenses, including contingent compensation arrangements entered into in connection with acquisitions.

Other expenses, net

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The following table sets forth our results of operations for the periods presented:

Three months ended March 31,

Three months ended June 30,

Six months ended June 30,

(in thousands)

4 unchanged sentences

General and administrative(1)

Acquisition related expenses

Total operating expenses

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Provision for income taxes

Includes stock-based compensation as follows:

Three months ended March 31,

Includes stock-based compensation expense as follows:

Three months ended June 30,

Six months ended June 30,

(in thousands)

5 unchanged sentences

Revenue by geographic region

The composition of our revenue by geographic region during the three months ended March 31, 2021 and 2020 were as follows:

Three months ended March 31,

The composition of our revenue by geographic region during the three and six months ended June 2021 and 2020 were as follows:

Three months ended June 30,

Six Months Ended June 30,

(dollars in thousands)

Americas – U.S.

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In addition to our consolidated statements of operations data as determined in accordance with GAAP, we believe the following non-GAAP measure is useful in evaluating our business performance.

Three months ended March 31,

Three months ended June 30,

Six months ended June 30,

Adjusted EBITDA

As of March 31,

As of June 30,

As of December 31,

4 unchanged sentences

Total liabilities

Total stockholders' (deficit) equity

Total stockholders' equity

We define working capital as current assets less current liabilities.

2 unchanged sentences

Adjusted EBITDA is not based on any standardized methodology prescribed by GAAP and is not necessarily comparable to similarly titled measures presented by other companies.

We define Adjusted EBITDA as our net loss, excluding the impact of stock-based compensation expense and related payroll tax expense, depreciation and amortization expense, interest income, interest expense, change in fair value of financial instruments, and our provision for income taxes.

We define Adjusted EBITDA as our net loss, excluding the impact of stock-based compensation expense and related payroll tax expense, third party acquisition-related costs and other acquisition related expenses, including contingent compensation arrangements entered into in connection with acquisitions, depreciation and amortization expense, interest income, interest expense, change in fair value of financial instruments, and our provision for income taxes.

The most directly comparable GAAP measure is net loss.

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Adjusted EBITDA excludes depreciation and amortization expense and, although this is a non-cash expense, the assets being depreciated and amortized may have to be replaced in the future;

Adjusted EBITDA does not reflect cash payments for acquisition related expenses consisting primarily of cash payments for third-party acquisition cost and other acquisition related expenses, including contingent compensation arrangements entered into in connection with acquisitions as these amounts do not reflect core operating performance of the business.

Adjusted EBITDA does not reflect the cash requirements necessary to service interest on our debt which affects the cash available to us;

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Reconciliation of net loss to Adjusted EBITDA

Three months ended March 31,

Three months ended June 30,

Six months ended June 30,

Stock-based compensation expense

Payroll tax associated with stock-based compensation expense

Third-party acquisition related costs

Depreciation and amortization

4 unchanged sentences

Adjusted EBITDA

Comparison of the three months ended March 31, 2021 and March 31, 2020

Three months ended March 31,

Comparison of the three and six months ended June 30, 2021 and June 30, 2020

Three months ended June 30,

Six months ended June 30,

(dollars in thousands)

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Total revenue

Three Months Ended March 31, 2021 Compared to Three Months Ended March 31, 2020.

Revenue increased $13.5 million, or 40.7%, to $46.7 million for the three months ended March 31, 2021 from $33.2 million for the three months ended March 31, 2020, as a result of increases in both subscription solutions and partner and services revenue.

Subscription solutions revenue increased $8.4 million, or 35.9%, to $32.0 million for the three months ended March 31, 2021 from $23.6 million for the three months ended March 31, 2020, primarily due to growth in subscription sales.

Partner and services revenue increased $5.0 million, or 52.3%, to $14.7 million for the three months ended March 31, 2021 from $9.6 million for the three months ended March 31, 2020, primarily as a result of increases in revenue-sharing activity with our technology partners and improved monetization of partner revenue share.

Three Months Ended June 30, 2021 Compared to Three Months Ended June 30, 2020.

Revenue increased $12.7 million, or 35.0%, to $49.0 million for the three months ended June 30, 2021 from $36.3 million for the three months ended June 30, 2020, as a result of increases in both subscription solutions and partner and services revenue.

Subscription solutions revenue increased $10.0 million, or 41.8%, to $34.0 million for the three months ended June 30, 2021 from $23.9 million for the three months ended June 30, 2020, primarily due to growth in mid-market and enterprise activity along with strong overall retention.

Partner and services revenue increased $2.7 million, or 21.7%, to $15.1 million for the three months ended June 30, 2021 from $12.4 million for the three months ended June 30, 2020, primarily as a result of increases in revenue-sharing activity with our technology partners and improved monetization of partner revenue share.

Six Months Ended June 30, 2021 Compared to Six Months Ended June 30, 2020.

Revenue increased $26.2 million, or 37.7%, to $95.7 million for the six months ended June 30, 2021 from $69.5 million for the six months ended June 30, 2020, as a result of increases in both subscription solutions and partner and services revenue.

Subscription solutions revenue increased $18.5 million, or 38.9%, to $66.0 million for the six months ended June 30, 2021 from $47.5 million for the six months ended June 30, 2020, primarily

due to growth in mid-market and enterprise activity along with strong overall retention .

Partner and services revenue increased $7.7 million, or 35.1%, to $29.7 million for th e six months ended June 30, 2021 from $22.0 million for the six months ended Ju ne 30, 2020 , primarily as a result of increases in revenue-sharing activity with our technology partners and improved monetization of partner revenue share.

Cost of revenue, gross profit, and gross margin

Three months ended March 31,

Three months ended June 30,

Six months ended June 30,

(dollars in thousands)

Cost of revenue

Three Months Ended March 31, 2021 Compared to Three Months Ended March 31, 2020.

Cost of revenue increased $1.8 million, or 23.7%, to $9.3 million for the three months March 31, 2021 from $7.5 million for the three months ended March 31, 2020, primarily as a result of higher hosting costs resulting from increased transactions processed of $0.3 million and higher personnel costs, including stock-based compensation expense amounting to $1.5 million.

Gross margin increased to 80.2% during the three months ended March 31, 2021 from 77.5% during the three months ended March 31, 2020.

Three Months Ended June 30, 2021 Compared to Three Months Ended June 30, 2020.

Cost of revenue increased $2.3 million, or 30.0%, to $10.2 million for the three months ended June 30, 2021 from $7.8 million for the three months ended June 30, 2020, primarily as a result of higher hosting costs resulting from increased transactions processed of $0.4 million and higher personnel costs, including stock-based compensation expense amounting to $1.8 million.

Gross margin increased to 79.2% during the three months ended June 30, 2021 from 78.4% during the three months ended June 30, 2020.

Six Months Ended June 30, 2021 Compared to Six Months Ended June 30, 2020.

Cost of revenue increased $4.1 million, or 26.9%, to $19.4 million for the six months ended June 30, 2021 from $15.3 million for the six months ended June 30, 2020, primarily as a result of higher hosting costs resulting from increased transactions processed of $0.9 million and higher personnel costs, including stock-based compensation expense amounting to $3.4 million.

Gross margin increased to 79.7% during the six months ended June 30, 2021 from 78.0% during the six months ended June 30, 2020.

Operating expenses

Sales and marketing

Three months ended March 31,

Three months ended June 30,

Six months ended June 30,

(dollars in thousands)

1 unchanged sentence

Percentage of revenue

Three Months Ended March 31, 2021 Compared to Three Months Ended March 31, 2020.

Sales and marketing expenses increased $5.0 million, or 32.0%, to $20.8 million for the three months ended March 31, 2021 from $15.8 million for the three months ended March 31, 2020, primarily due to higher staffing costs, including stock-based compensation expense and other employee related costs of $3.9 million and higher variable marketing costs of $0.9 million.

As a percentage of total revenue, sales and marketing expenses decreased to 44.6% during the three months ended March 31, 2021 from 47.5% during the three months ended March 31, 2020, primarily due to increased operating leverage from revenue growth.

Three Months Ended June 30, 2021 Compared to Three Months Ended June 30, 2020.

Sales and marketing expenses increased $5.4 million, or 31.9%, to $22.2 million for the three months ended June 30, 2021 from $16.8 million for the three months ended June 30, 2020, primarily due to higher staffing costs, including stock-based compensation expense of $3.4 million and additional spend to support revenue growth of $1.8 million.

As a percentage of total revenue, sales and marketing expenses decreased to 45.2% during the three months ended June 30, 2021 from 46.3% during the three months ended June 30, 2020, primarily due to increased revenue growth rates coupled with lower marketing costs experienced during the pandemic.

Six Months Ended June 30, 2021 Compared to Six Months Ended June 30, 2020.

Sales and marketing expenses increased $10.4 million, or 31.9%, to $43.0 million for the six months ended June 30, 2021 from $32.6 million for the six months ended June 30, 2020, primarily due to higher staffing costs, including stock-based compensation expense of $7.0 million and additional spend to support revenue growth of $3.5 million.

As a percentage of total revenue, sales and marketing expenses decreased to 44.9% during the six months ended June 30, 2021 from 46.9% during the six months ended June 30, 2020, primarily due to increased revenue growth rates coupled with lower marketing costs experienced during the pandemic.

Research and development

Three months ended March 31,

Three months ended June 30,

Six months ended June 30,

(dollars in thousands)

1 unchanged sentence

Percentage of revenue

Three Months Ended March 31, 2021 Compared to Three Months Ended March 31, 2020.

Research and development expenses increased $2.6 million, or 23.9%, to $13.5 million for the three months ended March 31, 2021 from $10.9 million for the three months ended March 31, 2020, primarily due to higher staffing costs of $1.8 million and higher variable spend of $0.5 million but declined as a percentage of revenue.

This decline reflects our leverage of previous enhancements to our platform capabilities and prior development of new product offerings.

We continue to see increased leverage resulting from the expansion of our engineering center in Kyiv, Ukraine.

Three Months Ended June 30, 2021 Compared to Three Months Ended June 30, 2020.

Research and development expenses increased $3.4 million, or 29.8%, to $14.7 million for the three months ended June 30, 2021 from $11.3 million for the three months ended June 30, 2020, primarily due to higher staffing costs, including stock-based compensation expense of $2.4 million and additional spend to support engineering projects of $1.0 million.

As a percentage of total revenue, research and development expenses decreased to 30.0% during the three months ended June 30, 2021 from 31.2% during the three months ended June 30, 2020, primarily due to increased operating leverage from revenue growth.

Six Months Ended June 30, 2021 Compared to Six Months Ended June 30, 2020.

Research and development expenses increased $6.0 million, or 26.9%, to $28.3 million for the six months ended June 30, 2021 from $22.3 million for the six months ended June 30, 2020, primarily due to higher staffing costs, including stock-based compensation expense of $4.5 million and additional spend to support engineering projects of $1.5 million.

As a percentage of total revenue, research and development expenses decreased to 29.5% during the six months ended June 30, 2021 from 32.0% during the six months ended June 30, 2020, primarily due to increased operating leverage from revenue growth.

General and administrative

Three months ended March 31,

Three months ended June 30,

Six months ended June 30,

(dollars in thousands)

1 unchanged sentence

Percentage of revenue

Three Months Ended March 31, 2021 Compared to Three Months Ended March 31, 2020.

General and administrative expenses increased $5.1 million, or 79.5%, to $11.6 million for the three months ended March 31, 2021 from $6.5 million for the three months ended March 31, 2020.

The increase was primarily due to increased staffing costs of $2.9 million and fees associated with operating as a public company of $2.5 million.

Three Months Ended June 30, 2021 Compared to Three Months Ended June 30, 2020.

General and administrative expenses increased $5.4 million, or 70.0%, to $13.1 million for the three months ended June 30, 2021 from $7.7 million for the three months ended June 30, 2020.

The increase was primarily due to higher staffing costs, including stock-based compensation expense of $3.4 million and fees associated with operating as a public company amounting to $2.1 million.

Six Months Ended June 30, 2021 Compared to Six Months Ended June 30, 2020.

General and administrative expenses increased $10.5 million, or 74.3%, to $24.7 million for the six months ended June 30, 2021 from $14.2 million for the six months ended June 30, 2020.

The increase was primarily due to higher staffing costs, including stock-based compensation expense of $6.3 million and fees associated with operating as a public company amounting to $4.6 million.

Acquisition related expenses

Acquisition related expense was $1.1 million for the three and six-months ended June 30, 2021 as a result of third-party legal and other professional services costs to support our acquisition of Feedonomics LLC.

Interest income

Interest income was insignificant for the three-month periods ended March 31, 2021 and 2020.

Interest income was insignificant for the three and six-month periods ended June 30, 2021 and 2020.

Interest expense

Interest expense was insignificant for the three-month period March 31, 2021 and was $0.8 million for the three months ended March 31, 2020, primarily as a result of our reliance on debt financing prior to our IPO.

Interest expense decreased $1.2 million to $0.0 for the three months ended June 30, 2021 from $1.2 million for the three months ended June 30, 2020 and decreased $1.9 million to $0.0 million for the six months ended June 30, 2021 from $1.9 million for the six months ended June 30, 2020, as a result of repaying all of our lines of credit.

Change in fair value of financial instrument

Change in the fair value of financial instrument was insignificant for the three-month period ended March 31, 2021 and was $4.4 million for the three-month period ended March 31, 2020.

The change in in fair value of financial instrument was insignificant for the six-month period ended June 30,2021.

For the six-month period ended June 30, 2020, the increase of $4.4 million in the fair value of financial instrument was the result of a decrease in fair value of the embedded lenders’ put option on our 2020 Convertible Term Loan.

Other expense

Other expense was insignificant for the three-month periods ended March 31, 2021 and 2020.

Other expense was insignificant for the three and six-month periods ended June 30, 2021 and 2020.

Provision for income taxes

Our provision for income taxes was insignificant for the three-month periods ended March 31, 2021 and 2020.

Our provision for income taxes was insignificant in the three and six months ended June 30, 2021 and 2020.

Liquidity and capital resources

We have incurred losses since our inception and have used the $236.2 million raised in our IPO and secondary offering to fund our operations.

As of March 31, 2021, we had an accumulated deficit of $321.9 million, working capital of $205.3 million, and $190.7 million in cash and cash equivalents and restricted cash.

We have incurred losses since our inception and will continue to generate negative operating cash flow, however we believe we have sufficient cash and cash equivalents and marketable securities to continue to fund operations.

As of June 30, 2021, we had an accumulated deficit of $333.1 million, working capital of $201.4 million, and $174.0 million in cash and cash equivalents and restricted cash.

Our debt facilities either expired, were repaid, or terminated in 2020.

Our short-term liquidity needs primarily include working capital for sales and marketing, research and development, and continued innovation.

Our operational short-term liquidity needs primarily include working capital for sales and marketing, research and development, and continued innovation.

Additionally, as a result of our strategic acquisition of Feedonomics LLC, on July 23, 2021, we used $81.4 million of our $174.0 million in cash and cash equivalents and restricted cash.

We have generated significant operating losses and negative cash flows from operations as reflected in our accumulated deficit and condensed consolidated statements of cash flows.

We expect to continue to incur operating losses and negative cash flows from operations in the future and may require additional capital resources to execute strategic initiatives to grow our business.

Our future capital requirements will depend on many factors, including our growth rate, levels of revenue, the expansion of sales and marketing activities, market acceptance of our platform, the results of business initiatives, the timing of new product introductions, and the impact of the COVID-19 pandemic on the global economy and our business, financial condition, and results of operations.

Our future capital requirements will depend on many factors, including our growth rate, levels of revenue, the expansion of sales and marketing activities, market acceptance of our platform, the results of business initiatives, the timing of new product introductions, and the continued impact of the COVID-19 pandemic on the global economy and our business, financial condition, and results of operations.

As the impact of the COVID-19 pandemic on the global economy and our operations evolves, we will continue to assess our liquidity needs.

We believe that our existing cash and cash equivalents, our cash flows from operating activities, and our borrowing capacity under our credit facilities will be sufficient to meet our working capital and capital expenditure needs and debt service obligations for at least the next twelve months.

We believe that our existing cash and cash equivalents will be sufficient to meet our working capital and capital expenditure needs for at least the next twelve months.

In the future, we may attempt to raise additional capital through the sale of additional equity or debt financing.

In particular, our strategic acquisition of Feedonomics LLC also requires up to $65.0 million in two annual installments of up to $32.5 million each, within ten business days after the first and second anniversary dates of the acquisition, or the earlier achievement of certain product and financial milestones.

We may elect, in our sole discretion, to make these post-closing payments partially or entirely in cash or shares of BigCommerce Series 1 common stock.

If we choose to issue stock to settle these payments, we will be required to register these shares with the Securities and Exchange Commission on Form S-3.

The sale of additional equity would be dilutive to our stockholders.

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The following table sets forth a summary of our cash flows for the periods indicated.

Three months ended March 31,

Three months ended June 30,

Six months ended June 30,

(in thousands)

1 unchanged sentence

Net cash used in investing activities

Net cash provided by financing activities

Net cash (used in) provided by financing activities

Net increase (decrease) in cash, cash equivalents and restricted cash

As of March 31, 2021, we had $190.7 million in cash, cash equivalents, and restricted cash, an increase of $156.6 million compared to $34.1 million as of March 31, 2020.

As of June 30, 2021, we had $174.0 million in cash, cash equivalents, and restricted cash, an increase of $147.5 million compared to $26.5 million as of June 30, 2020.

Cash and cash equivalents consist of highly-liquid investments with original maturities of less than three months.

2 unchanged sentences

Operating activities

Net cash used in operating activities for the three months ended March 31, 2021 and 2020 was $12.8 million and $10.0 million, respectively.

Net cash used in operating activities for the three months ended June 30, 2021 and 2020 was $4.6 million and $7.0 million, respectively.

This consisted primarily of our net losses adjusted for certain non-cash items including depreciation and amortization, stock-based compensation, debt discount amortization, bad debt expense, and the effect of changes in working capital.

Net cash used in operating activities for the six months ended June 30, 2021 and 2020 was $17.4 million and $17.0 million, respectively.

Investing activities

Net cash used in investing activities during the three months ended March 31, 2021 and 2020 was $18.9 million and $0.6 million, respectively.

It consisted primarily of purchases of marketable securities of $18.4 million and property and equipment of $0.5 million for 2021 and purchase of property and equipment of $0.6 million for 2020.

Net cash used in investing activities during the three months ended June 30, 2021 and 2020 was $13.2 million and $0.4 million, respectively.

For the three months ended June 30, 2021, it consisted primarily of the purchases of marketable securities of $12.0 million and the purchases of property and equipment of $1.2 million.

For the three months ended June 30, 2020, it consisted primarily of purchases of property and equipment of $0.4 million.

Net cash used in investing activities during the six months ended June 30, 2021 and 2020 was $32.0 million and $1.0 million, respectively.

For the six months ended June 30, 2021, it consisted primarily of the purchases of marketable securities of $30.4 million and the purchases of property and equipment of $1.6 million.

For the six months ended June 30, 2020, it consisted primarily of purchases of property and equipment of $1.0 million.

Financing activities

Net cash provided by financing activities during the three months ended March 31, 2021 and 2020 was $1.7 million and $35.5 million, respectively.

In the three months ended March 31, 2021, proceeds from the exercise of stock options provided $1.7 million.

In the three months ended, March 31, 2020 bank borrowings provided $40.7 million, and issuance of shares of Series 1 common stock pursuant to the exercise of stock options provided $0.4 million, partially offset by debt repayments of $5.6 million.

Net cash provided by financing activities during the three months ended June 30, 2021 was $1.1 million.

During this period the issuance of shares of Series 1 common stock pursuant to the exercise of stock options provided $1.1 million.

Net cash used in financing activities during the three months ended June 30, 2020, was $0.1 million.

During this period, issuance of shares of Series 1 common stock pursuant to the exercise of stock options provided $0.5 million, partially offset by debt repayments of $0.6 million.

Net cash provided by financing activities during the six months ended June 30, 2021 and 2020 was $2.9 million and $35.4 million, respectively.

In the six months ended June 30, 2021, the issuance of shares of Series 1 common stock pursuant to the exercise of stock options provided $2.9 million.

In the six months ended June 30, 2020, bank borrowings provided $40.7 million and issuance of shares of Series 1 common stock pursuant to the exercise of stock options provided $0.9 million, partially offset by debt repayments of $6.2 million.

Contractual obligations

Our principal commitments consist of (1) operating leases for office space, and (2) purchase obligations with certain technology providers used to host our platform.

The following table summarizes our commitments to settle contractual obligations as of March 31, 2021.

The following table summarizes our commitments to settle contractual obligations as of June 30, 2021.

Payments Due by Period

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Off-balance sheet arrangements

We did not have any off-balance sheet arrangements as of March 31, 2021 or December 31, 2020.

We did not have any off-balance sheet arrangements as of June 30, 2021 or as of December 31, 2020.

Critical accounting policies and estimates

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis