What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2021-11-10 compared with 2021-08-11 · 117 added, 118 removed, 238 unchanged (50% of the section changed)

24 unchanged sentences

pandemic, such as travel and hospitality and financial services, reduced or paused their levels of business with us.

This resulted in a reduction of total scaled customers that has continued through the three months ended June 30, 2021 relative to the prior-year period, as we saw a decrease in our total scaled customers, from 357 customers to 343 customers.

However, during the three months ended June 30, 2021, we experienced an increase in scaled customer ARPU, which resulted in our revenue increasing for the three months ended June 30, 2021 compared to the prior-year period.

Our scaled customer ARPU growth resulted primarily

from the initial effects of transitioning our sales team model to focus a dedicated team on new business development and a separate team on training and educating new and existing users on our platform capabilities.

This resulted in a reduction of total scaled customers that has continued through the three months ended September 30, 2021 relative to the prior-year period, as we saw a decrease in our total scaled customers, from 354 customers to 347 customers.

However, during the three months ended September 30, 2021, we experienced an increase in scaled customer ARPU, which resulted in our revenue increasing for the three months ended September 30, 2021 compared to the prior-year period.

Our scaled customer ARPU growth resulted primarily from the initial effects of transitioning our sales team model to focus a dedicated team on new business development and a separate team on training and educating new and existing users on our platform capabilities.

Our transition to this hunter/farmer sales model has included focusing more of our sales team on growth of existing scaled customers and aligning scaled customers with sellers that have specific industry expertise.

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pandemic to continue to increase even as the growth effects of the COVID-19

pandemic on some industries may tend to moderate.

pandemic on some industries may tend to be moderate.

Factors Affecting Results of Operations

5 unchanged sentences

Our revenue is comprised from a mix of direct platform revenue and integrated platform revenue, which leverages application programming interface (“API”) integrations with third parties.

For the six months ended June 30, 2021 and 2020, we derived 76% and 74% of our revenues from direct platform revenue, and 24% and 26% of our revenues from integrated platform revenue, respectively.

For the nine months ended September 30, 2021 and 2020, we derived 75% and 71% of our revenues from direct platform revenue, and 25% and 29% of our revenues from integrated platform revenue, respectively.

Revenues are recognized when control of these products or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those products and services.

19 unchanged sentences

Research and development expenses

Research and development expenses primarily consists of personnel costs, including salaries, bonuses and employee benefit costs, engineering and IT services associated with the ongoing research and maintenance of internal use software, including platform and related infrastructure.

Research and development expenses primarily consist of personnel costs, including salaries, bonuses and employee benefit costs, engineering and IT services associated with the ongoing research and maintenance of internal use software, including platform and related infrastructure.

We expect to continue to invest in research and development in order to develop our technology platform to drive incremental value and growth and as a result we expect that research and development expenses will increase as a percentage of revenue in the long term.

3 unchanged sentences

Acquisition related expenses

Acquisition related expenses primarily consists of legal fees associated with certain business combinations and addressing disputes related to those transactions.

Acquisition related expenses primarily consist of legal fees associated with certain business combinations and addressing disputes related to those transactions.

It also includes retention bonuses agreed to be paid to employees related to one-time

7 unchanged sentences

Other (income) / expense

Other (income) / expense primarily consist of changes in fair value of acquisition related liabilities, gains and losses on sale of assets, gains and losses on extinguishment of acquisition related liabilities and foreign exchange gains and losses.

Other (income) / expense primarily consists of changes in fair value of acquisition related liabilities, gains and losses on sale of assets, gains and losses on extinguishment of acquisition related liabilities and foreign exchange gains and losses.

We expect that the magnitude of other income and expenses will depend on external factors such as foreign exchange rate, which could be greater than or less than our historic levels.

2 unchanged sentences

The change in fair value of warrants and derivative liabilities depends on external valuation-related factors.

As of June 30, 2021, the Company does not have any warrants and derivative liabilities on its condensed unaudited consolidated balance sheets.

As of September 30, 2021, the Company does not have any warrants and derivative liabilities on its condensed unaudited consolidated balance sheets.

Income tax provision

2 unchanged sentences

At each interim period, the Company updates its estimate of the annual effective tax rate and records cumulative adjustments, as necessary.

For the interim period ended June 30, 2020, the Company utilized the annual effective tax rate methodology to determine its income tax provision.

For the interim period ended June 30, 2021, the Company departed from the annual effective tax rate methodology and computed its income tax provision using a discrete method.

For the interim period ended September 30, 2020, the Company utilized the annual effective tax rate methodology to determine its income tax provision.

For the interim period ended September 30, 2021, the Company departed from the annual effective tax rate methodology and computed its income tax provision using a discrete method.

The use of the discrete method was made in accordance with authoritative accounting guidance which allows for the use of a discrete method when there are significant changes to the projected annual effective tax rate as a result of minor adjustments to projected pre-tax

8 unchanged sentences

Adjusted EBITDA is a non-GAAP financial

measure defined as net loss adjusted for interest expense, depreciation and amortization, stock-based compensation, income tax (benefit) / provision, acquisition related expenses, restructuring expenses, change in fair value of warrants and derivative liabilities, certain non-recurring

IPO related expenses and other (income) / expense.

measure defined as net loss adjusted for interest expense, depreciation and amortization, stock-based compensation, income tax provision / (benefit), acquisition related expenses, restructuring expenses, change in fair value of warrants and derivative liabilities, certain dispute settlement expense, certain non-recurring

IPO related expenses and other expenses / (income).

Acquisition related expenses and restructuring expenses primarily consist of severance and other personnel-related costs which we do not expect to incur in the future as acquisitions of businesses may distort the comparability of the results of operations.

2 unchanged sentences

in the valuation of derivatives and warrants.

Other (income) / expense consist of non-cash expenses

Other expenses / (income) consists of non-cash expenses

such as changes in fair value of acquisition related liabilities, gains and losses on extinguishment of acquisition-related liabilities, gains and losses on sales of assets and foreign exchange gains and losses.

In particular, we believe that the exclusion of stock-based compensation and non-recurring

In particular, we believe that the exclusion of stock-based compensation, certain dispute settlement expenses and non-recurring

IPO related expenses that are not related to our core operations provides measures for period-to-period

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The following table reconciles adjusted EBITDA and adjusted EBITDA margin to net loss, the most directly comparable financial measure calculated and presented in accordance with GAAP.

Three months ended June 30,

Six months ended June 30,

Net income (loss) margin

Three months ended September 30,

Nine months ended September 30,

Net loss margin

Interest expense

Income tax provision / (benefit)

Depreciation and amortization

2 unchanged sentences

Gain on extinguishment of debt

Income tax provision / (benefit)

Acquisition related expenses

1 unchanged sentence

Change in fair value of warrants and derivative liabilities

Other incomes / (expense)

Dispute settlement expense

Other expenses / (income)

Adjusted EBITDA

3 unchanged sentences

The Company’s CODM is the Chief Executive Officer.

Three months ended June 30,

Six months ended June 30,

Three months ended September 30,

Nine months ended September 30,

Condensed Consolidated Statements of Operations Data:

8 unchanged sentences

Total operating expenses

Loss from operations

(Loss) / income from operations

Interest expense

Other (incomes) / expenses, net

Other expenses / (income), net

Gain on extinguishment of debt

Change in fair value of warrants and derivative liabilities

Total other expenses / (other incomes)

Total other expenses

Loss before income taxes

1 unchanged sentence

Net loss available to common stockholders

Comparison of the Three Months Ended June 30, 2021 and 2020

Three months ended June 30,

Revenues increased by $29.8 million, or 38.6%, for the three months ended June 30, 2021 compared to the three months ended June 30, 2020.

Comparison of the Three Months Ended September 30, 2021 and 2020

Three months ended September 30,

Revenues increased by $19.8 million, or 20.8%, for the three months ended September 30, 2021 compared to the three months ended September 30, 2020.

This increase in revenues is attributable to incremental revenues of $6.2 million from existing customers and $13.6 million from new customers.

Cost of revenues (excluding depreciation and amortization)

Three months ended June 30,

Three months ended September 30,

Cost of revenues (excluding depreciation and amortization)

Cost of revenues (excluding depreciation and amortization) increased by $12.9 million, or 44.1%, for the three months ended June 30, 2021, compared to the three months ended June 30, 2020.

Cost of revenues (excluding depreciation and amortization) increased by $3.8 million, or 9.4%, for the three months ended September 30, 2021, compared to the three months ended September 30, 2020.

This increase was primarily driven by $1.9 million in incremental media costs and other direct fulfillment costs of $1.6 million.

General and administrative expenses

Three months ended June 30,

Three months ended September 30,

General and administrative expenses

General and administrative expenses increased by $48.5 million, or 280.4%, for the three months ended June 30, 2021 compared to the three months ended June 30, 2020.

This increase was primarily driven by stock compensation expense of $42.6 million, higher employee related costs of $4.1 million and certain non-recurring

IPO related expense of $1.5 million.

General and administrative expenses increased by $33.5 million, or 195.3%, for the three months ended September 30, 2021 compared to the three months ended September 30, 2020.

This increase was primarily driven by stock-based compensation of $28.2 million, higher employee related costs of $3.1 million, higher legal and professional fees of $1.7 million and shares issued in the settlement of a dispute of $1.2 million, this increase was partially offset by reduction in the rent and facility expenses of $0.4 million and computer and telecom expenses of $0.4 million.

Selling and marketing expenses

Three months ended June 30,

Three months ended September 30,

Selling and marketing expenses

Selling and marketing expenses increased by $66.0 million, or 391.9%, for the three months ended June 30, 2021 compared to the three months ended June 30, 2020.

This increase was primarily driven by stock compensation expense of $59.5 million, higher employee related costs of $5.6 million and non-recurring

IPO related expenses of $0.8 million.

Selling and marketing expenses increased by $42.3 million, or 231.4%, for the three months ended September 30, 2021 compared to the three months ended September 30, 2020.

This increase was primarily driven by stock-based compensation of $35.1 million, higher employee related costs of $6.5 million and other marketing related expenses of $0.8 million.

Research and development expenses

Three months ended June 30,

Three months ended September 30,

Research and development expenses

Research and development expenses increased by $18.3 million, or 224.8%, for the three months ended June 30, 2021 compared to the three months ended June 30, 2020.

This increase was primarily driven by stock compensation expenses of $16.9 million, higher payroll cost of $0.9 million and non-recurring

IPO related expenses of $0.4 million.

Research and development expenses increased by $7.1 million, or 102.7%, for the three months ended September 30, 2021 compared to the three months ended September 30, 2020.

This increase was primarily driven by stock-based compensation of $4.8 million and higher employee related costs of $2.1 million.

Depreciation and amortization

Three months ended June 30,

Three months ended September 30,

Depreciation and amortization

Depreciation and amortization increased by $0.7 million, or 7.0%, for the three months ended June 30, 2021 compared to the three months ended June 30, 2020.

This increase was primarily driven by an increase in amortization of intangibles of $1.0 million.

Depreciation and amortization increased by $1.7 million, or 16.3%, for the three months ended September 30, 2021 compared to the three months ended September 30, 2020.

This increase was primarily driven by amortization of intangibles of $1.1 million and depreciation expense of $0.5 million.

Acquisition related expenses

Three months ended June 30,

Three months ended September 30,

Acquisition related expenses

Acquisition related expenses decreased by $0.8 million, or 71.5%, for the three months ended June 30, 2021 compared to the three months ended June 30, 2020.

This decrease was primarily driven by lower retention bonuses and professional fees compared with those incurred during the three months ended on June 30 2020, in conjunction with acquisitions completed in 2019.

Acquisition related expenses decreased by $0.8 million, or 61.0%, for the three months ended September 30, 2021 compared to the three months ended September 30, 2020.

This decrease was primarily driven by lower retention bonuses and professional fees compared with those incurred during the three months ended September 30, 2020, in conjunction with acquisitions completed in 2019.

Restructuring expenses

Three months ended June 30,

Three months ended September 30,

Restructuring expenses

Restructuring expenses decreased by $0.3 million, or 69.9%, for the three months ended June 30, 2021 compared to the three months ended June 30, 2020.

Restructuring expenses decreased by $0.2 million, or 88.4%, for the three months ended September 30, 2021 compared to the three months ended September 30, 2020.

This decrease was primarily driven by lower employee severance cost.

Interest expense

Three months ended June 30,

Three months ended September 30,

Interest expense

Interest expense decreased by $3.0 million, or 68.0%, for the three months ended June 30, 2021 compared to the three months ended June 30, 2020.

This decrease was primarily driven by lower interest on the new debt facility entered into during 2021.

Other incomes

Three months ended June 30,

Other incomes

Other income increased by $0.3 million for the three months ended June 30, 2021 compared to the three months ended June 30, 2020.

This increase was primarily driven by a change in the fair value of acquisition related liabilities.

Interest expense decreased by $2.5 million, or 64.9%, for the three months ended September 30, 2021 compared to the three months ended September 30, 2020.

This decrease was primarily driven by a lower interest rate on the new debt facility entered into during 2021.

Other expenses / (income)

Three months ended September 30,

Other expenses / (income)

Other expenses increased by $0.7 million or 363.8% for the three months ended September 30, 2021 compared to the three months ended September 30, 2020.

This increase was primarily driven by a foreign currency loss of $0.4 million and change in the fair value of acquisition related liabilities of $0.2 million.

Change in fair value of warrants and derivative liabilities

Three months ended June 30,

Three months ended September 30,

Change in fair value of warrants and derivative liabilities

Change in fair value of warrants and derivative liabilities expense decreased by $22.7 million for the three months ended June 30, 2021 compared to the three months ended June 30, 2020.

This was primarily driven by a change in our estimates and assumptions specifically as it relates to the price of our underlying stock used to calculate the fair value of our warrants and derivatives.

Change in fair value of warrants and derivative liabilities expense decreased by $9.7 million for the three months ended September 30, 2021 compared to the three months ended September 30, 2020.

This loss during the three months September 30, 2020 was primarily driven by a change in our estimates and assumptions specifically as it relates to the price of our underlying stock used to calculate the fair value of our warrants and derivatives.

Income tax provision

Three months ended June 30,

Three months ended September 30,

Income tax provision

For the three months ended June 30, 2021, the Company recorded an income tax provision of $0.6 million yielding an effective tax rate of (0.62)%.

For the three months ended June 30, 2020, the Company recorded an income tax provision of $0.4 million yielding an effective tax rate of (2.70)%.

For the three months ended September 30, 2021, the Company recorded an income tax provision of $0.4 million yielding an effective tax rate of (0.62)%.

For the three months ended September 30, 2020, the Company recorded an income tax provision of $0.3 million yielding an effective tax rate of (2.37)%.

The effective tax rate for both interim periods was different than the U.S.

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deferred tax assets.

Comparison of the Six Months Ended June 30, 2021 and 2020

Six months ended June 30,

Revenues increased by $50.0 million, or 31.5%, for the six months ended June 30, 2021 compared to the six months ended June 30, 2020.

Comparison of the Nine Months Ended September 30, 2021 and 2020

Nine months ended September 30,

Revenues increased by $69.8 million, or 27.5%, for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020.

This increase in revenues is attributable to incremental revenues of $30.8 million from existing customers and $38.9 million from new customers.

Cost of revenues (excluding depreciation and amortization)

Six months ended June 30,

Nine months ended September 30,

Cost of revenues (excluding depreciation and amortization)

Cost of revenues (excluding depreciation and amortization) increased by $21.4 million, or 35.7%, for the six months ended June 30, 2021, compared to the six months ended June 30, 2020.

This increase was primarily driven by $17.3 million in incremental media costs and other direct fulfillment costs of $3.0 million.

Cost of revenues (excluding depreciation and amortization) increased by $25.2 million, or 25.0%, for the nine months ended September 30, 2021, compared to the nine months ended September 30, 2020.

This increase was primarily driven by $20.0 million in incremental media costs, other direct fulfillment costs of $3.5 million and stock-based compensation of $1.5 million.

General and administrative expenses

Six months ended June 30,

Nine months ended September 30,

General and administrative expenses

General and administrative expenses increased by $48.9 million, or 135.4%, for the six months ended June 30, 2021 compared to the six months ended June 30, 2020.

This increase was driven by stock compensation expense of $42.6 million, employee related costs of $5.2 million and non-recurring

IPO related expense of $1.5 million.

General and administrative expenses increased by $82.4 million, or 154.7%, for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020.

This increase was driven by stock-based compensation of $70.9 million, employee related costs of $9.3 million, non-recurring

IPO related expenses of $1.5 million, legal and professional fees of $2.0 million and shares issued in the settlement of a dispute of $1.2 million, this increase was partially offset by reduction in the rent and facility expenses of $1.4 million and computer and telecom expenses of $1.0 million.

Selling and marketing expenses

Six months ended June 30,

Nine months ended September 30,

Selling and marketing expenses

Selling and marketing expenses increased by $67,325 million, or 186.5%, for the six months ended June 30, 2021 compared to the six months ended June 30, 2020.

This increase was primarily driven by stock compensation expense of $59.5 million, higher employee related costs of $7.2 million and one-time

Selling and marketing expenses increased by $109.6 million, or 201.6%, for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020.

This increase was primarily driven by stock-based compensation of $94.6 million, higher employee related costs of $14.2 million and non-recurring

IPO related expense of $0.8 million.

Research and development expenses

Six months ended June 30,

Nine months ended September 30,

Research and development expenses

Research and development expenses increased by $ 19.4 million, or 114.9%, for the six months ended June 30, 2021 compared to the six months ended June 30, 2020.

This increase was primarily driven by stock compensation of $16.9 million, higher payroll cost and consulting fees of $2.0 million and non-recurring

Research and development expenses increased by $26.5 million, or 111.4%, for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020.

This increase was primarily driven by stock-based compensation of $21.7 million, higher employee related costs and professional and consulting fees of $4.5 million and non-recurring

IPO related expenses of $0.4 million.

Depreciation and amortization

Six months ended June 30,

Nine months ended September 30,

Depreciation and amortization

Depreciation and amortization increased by $1.3 million, or 6.6%, for the six months ended June 30, 2021 compared to the six months ended June 30, 2020.

This increase was primarily driven by an increase in amortization of intangibles of $1.2 million.

Depreciation and amortization increased by $3.0 million, or 9.8%, for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020.

This increase was primarily driven by an increase in amortization of intangibles of $2.3 million and depreciation expense of $0.6 million.

Acquisition related expenses

Six months ended June 30,

Nine months ended September 30,

Acquisition related expenses

Acquisition related expenses decreased by $2.1 million, or 66.5%, for the six months ended June 30, 2021 compared to the six months ended June 30, 2020.

This decrease was primarily driven by lower retention bonuses and professional fees compared to those incurred during the six months ended on June 30, 2020 in conjunction with acquisitions completed in 2019.

Acquisition related expenses decreased by $2.8 million, or 64.9%, for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020.

This decrease was primarily driven by lower retention bonuses and professional fees compared to those incurred during the nine months ended on September 30, 2020 in conjunction with acquisitions completed in 2019.

Restructuring expenses

Six months ended June 30,

Nine months ended September 30,

Restructuring expenses

Restructuring expenses decreased by $1.3 million, or 74.2%, for the six months ended June 30, 2021 compared to the six months ended June 30, 2020.

This decrease was primarily driven by lower employee severance cost during six months ending June 30, 2021 compared with June 30, 2020.

Restructuring expenses decreased by $1.5 million, or 76.1%, for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020.

This decrease was primarily driven by lower employee severance cost during the nine months ending September 30, 2021 compared with September 30, 2020.

Interest expense

Six months ended June 30,

Nine months ended September 30,

Interest expense

Interest expense decreased by $4.4 million, or 50.0%, for the six months ended June 30, 2021 compared to the six months ended June 30.

This decrease was primarily driven by lower interest on the new debt facility entered into during the six months ended June 30, 2021.

Other expenses / (incomes)

Six months ended June 30,

Other expenses / (incomes)

Other expense increased by $0.9 million for the six months ended June 30, 2021 compared to the six month ended June 30, 2020.

Interest expense decreased by $6.8 million, or 54.5%, for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020.

This decrease was primarily driven by a lower interest rate on the new debt facility entered into during 2021.

Other expenses / (income)

Nine months ended September 30,

Other expenses / (income)

Other expense increased by $1.6 million, or 288.8% for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020.

This increase was primarily driven by an increase in loss on sale of assets of $0.7 million, and an increase in foreign currency loss of $0.8 million.

Change in fair value of warrants and derivative liabilities

Six months ended June 30,

Nine months ended September 30,

Change in fair value of warrants and derivative liabilities

Change in fair value of warrants and derivative liabilities expense decreased by $1.7 million for the six months ended June 30, 2021 compared to the six months ended June 30, 2020.

Change in fair value of warrants and derivative liabilities expense decreased by $11.4 million for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020.

These losses during the nine months ended September 30, 2021 and 2020 were primarily driven by a change in our estimates and assumptions specifically as it relates to the price of our underlying stock used to calculate the fair value of our warrants and derivatives.

The warrants and derivative liabilities were extinguished upon the Company’s IPO on June 14, 2021 and as such there are no such changes in the liabilities recorded during the three months ended September 30, 2021, and the losses in the nine months ended September 30, 2021 are much smaller compared to the nine months ended September 30, 2020,

Income tax (benefit) / provision

Six months ended June 30,

Nine months ended September 30,

Income tax (benefit) / provision

For the six months ended June 30, 2021, the Company recorded an income tax benefit of $1.0 million yielding an effective tax rate was 0.83%.

For the six months ended June 30, 2020, the Company recorded an income tax provision of $1.0 million yielding an effective tax rate was (3.35)%.

For the nine months ended September 30, 2021, the Company recorded an income tax benefit of $0.6 million yielding an effective tax rate of 0.3%.

For the nine months ended September 30, 2020, the Company recorded an income tax provision of $1.3 million yielding an effective tax rate of (3.06)%.

The effective tax rate for both interim periods was different than the U.S.

4 unchanged sentences

We have financed our operations and capital expenditures primarily through utilization of cash generated from operations, as well as borrowings under our credit facilities.

As of June 30, 2021, we had cash and cash equivalents of $113.6 million.

The net working capital, consisting of current assets less current liabilities, as of June 30, 2021 was $97.4 million.

As of June 30, 2021, we had an accumulated deficit of $361.6 million.

As of September 30, 2021, we had cash and cash equivalents of $116.2 million.

The net working capital, consisting of current assets less current liabilities, as of September 30, 2021 was $95.4 million.

As of September 30, 2021, we had an accumulated deficit of $430.7 million.

We believe our existing cash and anticipated net cash provided by operating activities, together with available borrowings under our credit facility, will be sufficient to meet our working capital requirements for at least the next 12 months.

1 unchanged sentence

The following table summarizes our cash flows:

Six months ended June 30,

Nine months ended September 30,

Net cash provided by / (used for):

3 unchanged sentences

Effect of exchange rate changes on cash and cash equivalents

Net increase in cash, cash equivalents and restricted cash

Net increase in cash and cash equivalents

Cash Flows from Operating Activities

For the six months ended June 30, 2021, net cash provided by operating activities of $13.2 million resulted primarily from adjusted non-cash

For the nine months ended September 30, 2021, net cash provided by operating activities of $23.4 million resulted primarily from adjusted non-cash

items of $217.6 million, more than offsetting our net loss of $188.4 million and resulting in a net cash income of $29.2 million.

Changes in working capital were primarily driven by a decrease in accounts receivable of $8.2 million, decrease in prepaid and other current assets of $2.5 million and increase in accrued expenses and other current liabilities of $1.5 million, offset by a decrease in accounts payable of $14.1 million and deferred revenues of $0.4 million, for net changes in working capital of $2.5 million.

For the six months ended June 30, 2020, net cash provided by operating activities of $9.7 million resulted primarily from changes in working capital driven by a decrease in accounts receivable of $32.5 million, increase in accounts payable of $8.3 million, decrease in prepaid and other current assets of $1.7 million, offset by increase in accrued expenses and other current liabilities of $31.5 million, for net changes in working capital of $12.2 million.

Changes in working capital were primarily driven by a decrease in accounts receivable of $7.4 million, decrease in prepaid and other current assets of $2.4 million and increase in accrued expenses and other current liabilities of $2.8 million, offset by a decrease in accounts payable of $18.0 million and deferred revenues of $1.3 million, for net decrease in working capital of $5.8 million.

For the nine months ended September 30, 2020, net cash provided by operating activities of $16.6 million resulted primarily from changes in working capital driven by a decrease in accounts receivable of $29.0 million, partially offset by a decrease in accounts payable, accrued expenses and other current liabilities of $19.7 million, for net increase in working capital of $11.7 million.

This increase was partially offset by net loss of $44.4 million adjusted for non-cash

1 unchanged sentence

Cash Flows from Investing Activities

For the six months ended June 30, 2021, we used $16.1 million of cash in investing activities, primarily consisting of website and software development costs of $9.5 million, capital expenditure of $4.4 million and business and asset acquisitions, net of cash acquired, of $2.2 million.

For the six months ended June 30, 2020, we used $12.8 million of cash in investing activities, primarily consisting of website and software development costs of $11.7 million.

For the nine months ended September 30, 2021, we used $22.5 million of cash in investing activities, primarily consisting of website and software development costs of $13.4 million, capital expenditure of $6.9 million and business and asset acquisitions of $2.2 million.

For the nine months ended September 30, 2020, we used $19.4 million of cash in investing activities, primarily consisting of website and software development costs of $17.5 million and capital expenditure of $1.9 million.

Cash Flows from Financing Activities

For the six months ended June 30, 2021, net cash provided by financing activities of $65.8 million was primarily due to IPO proceeds (net of issuance cost) of $127.4 million, new credit facility of $183.3 million (net of financing cost), partially offset by repayments against credit lines of $42.8 million and term loan of $138.0 million.

Further, in connection with our IPO, we repurchased and canceled certain stock from our employees, including restricted stock and restricted stock units with a total repurchase amount of $64.1 million.

For the six months ended June 30, 2020, net cash provided by financing activities of $6.0 million was primarily due to $10.0 million in proceeds from the PPP loan, partially offset by repayments of $3.5 million under our credit facilities.

As of June 30, 2021, we have $183.4 million of outstanding long-term borrowings.

For the nine months ended September 30, 2021, net cash provided by financing activities of $64.7 million was primarily due to IPO proceeds (net of issuance cost) of $126.5 million, new credit facility of $183.3 million (net of financing cost), partially offset by repayments against credit facilities of $180.7 million.

Further, in connection with our IPO, we repurchased and cancelled certain stock, including restricted stock and restricted stock units with a total repurchase amount of $64.5 million.

For the nine months ended September 30, 2020, net cash provided by financing activities of $6.0 million was primarily due to $10.0 million in proceeds from the PPP loan, partially offset by repayments of $3.5 million under our credit facilities and cash paid for acquisition related liabilities amounting to $0.5 million.

As of September 30, 2021, we have $183.5 million (net of $1.5 million of unamortized debt acquisition costs) of outstanding long-term borrowings.

On February 3, 2021 we completed our debt refinancing and as a result of such debt refinancing, we entered into a $222.5 million Senior Secured Credit Facility.

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GAAP requires us to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period.

Estimates are based on management judgment and the best available information, and as such actual results could differ from those estimates.

Estimates are based on management’s judgment and the best available information, and as such actual results could differ from those estimates.

There have been no material changes to our critical accounting policies and estimates as compared to the critical policies and estimates described in our Management’s Discussion and Analysis of Financial Condition and Results of Operations set forth in the Prospectus related to our recent IPO.

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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