|
Delaware
(State or other jurisdiction of
incorporation or organization) |
| |
7372
(Primary Standard Industrial
Classification Code Number) |
| |
20-0375811
(I.R.S. Employer
Identification Number) |
|
|
Ryan J. Dzierniejko
David J. Goldschmidt Skadden, Arps, Slate, Meagher & Flom LLP One Manhattan West New York, NY 10001 (212) 735-3000 |
| |
Courtenay O’Connor
Jessica Krasner Squarespace, Inc. 225 Varick Street, 12th Floor New York, New York 10014 (646) 580-3456 |
| |
Marc D. Jaffe
Gregory P. Rodgers Benjamin J. Cohen Latham & Watkins LLP 885 Third Avenue New York, NY 10022 (212) 906-1200 |
|
| Large accelerated filer | | | ☐ | | | | | | Accelerated filer | | | ☐ | |
| Non-accelerated filer | | | ☒ | | | | | | Smaller reporting company | | | ☐ | |
| | | | | | | | | | Emerging growth company | | | ☒ | |
| | | | | | | | | | | | | | | | | | | | | | | |
Title of Each Class of
Securities to be Registered |
| | |
Amount to be
Registered |
| | |
Proposed
Maximum Offering Price Per Share |
| | |
Proposed
Maximum Aggregate Offering Price(1) |
| | |
Amount of
Registration Fee |
| ||||||
Class A common stock, $0.0001 par value per share
|
| | | | | | |
Not Applicable
|
| | | | $ | 100,000,000 | | | | | | $ | 10,910 | | |
| | |
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| | | | 142 | | | |
| | | | F-1 | | |
| | |
Year Ended
December 31, |
| |
Pro Forma
Year ended December 31, |
| ||||||||||||
($ in thousands, except share and per share data)
|
| |
2019
|
| |
2020
|
| |
2020
|
| |||||||||
| | | | | | | | | | | | | | |
(unaudited)
|
| |||
Consolidated Statements of Operations Information: | | | | | | | | | | | | | | | | | | | |
Revenue
|
| | | $ | 484,751 | | | | | $ | 621,149 | | | | | $ | 644,177 | | |
Cost of revenue(1)
|
| | | | 81,910 | | | | | | 98,337 | | | | | | 113,662 | | |
Gross profit
|
| | | | 402,841 | | | | | | 522,812 | | | | | | 530,515 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | |
Research and product development(1)
|
| | | | 107,645 | | | | | | 167,906 | | | | | | 180,084 | | |
Marketing and sales(1)
|
| | | | 184,278 | | | | | | 260,039 | | | | | | 272,652 | | |
General and administrative(1)
|
| | | | 49,578 | | | | | | 54,647 | | | | | | 324,136 | | |
Total operating expenses
|
| | | | 341,501 | | | | | | 482,592 | | | | | | 776,872 | | |
Operating income
|
| | | | 61,340 | | | | | | 40,220 | | | | | | (246,357) | | |
Interest expense
|
| | | | (1,080) | | | | | | (10,043) | | | | | | (10,043) | | |
Other income/(loss), net
|
| | | | 3,815 | | | | | | (7,678) | | | | | | (7,667) | | |
Income before (provision for)/benefit from income taxes
|
| | | | 64,075 | | | | | | 22,499 | | | | | | (264,067) | | |
(Provision for)/benefit from income taxes
|
| | | | (5,923) | | | | | | 8,089 | | | | | | (3,586) | | |
Net income/loss
|
| | | $ | 58,152 | | | | | $ | 30,588 | | | | | $ | (267,653) | | |
Net loss per share attributable to Class A and Class B common stockholders, basic and diluted(2)
|
| | | $ | (14.91) | | | | | $ | (14.10) | | | | | | | | |
Weighted-average shares used in computing net income/(loss)
per share attributable to Class A and Class B common stockholders, basic and diluted(2) |
| | | | 17,354,458 | | | | | | 17,917,236 | | | | | | | | |
Pro forma net income/(loss) per share attributable to Class A and Class B common stockholders, basic and diluted (unaudited)
|
| | | | | | | | | | | | | | | $ | (4.11) | | |
Pro forma weighted-average shares used in computing net
income/(loss) per share attributable to Class A and Class B common stockholders, basic and diluted (unaudited) |
| | | | | | | | | | | | | | | | 134,172,935 | | |
($ in thousands) | | | | | | | | | | | | | | | | | | | |
Consolidated Statements of Cash Flows Information: | | | | | | | | | | | | | | | | | | | |
Net cash provided by operating activities
|
| | | $ | 102,333 | | | | | $ | 150,030 | | | | | | | | |
Net cash (used in) provided by investing activities
|
| | | | (75,323) | | | | | | 34,262 | | | | | | | | |
Net cash used in financing activities
|
| | | | (45,827) | | | | | | (170,709) | | | | | | | | |
| | |
As of December 31, 2020
|
| |||||||||
| | |
Actual
|
| |
Pro Forma
|
| ||||||
(in thousands)
|
| | | | | | | |
(Unaudited)
|
| |||
Consolidated Balance Sheet Information: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 57,891 | | | | | $ | 139,803 | | |
Restricted cash
|
| | | | — | | | | | | 12,334 | | |
Investment in marketable securities
|
| | | | 37,462 | | | | | | 37,462 | | |
Total assets
|
| | | | 306,766 | | | | | | 831,622 | | |
Total liabilities
|
| | | | 839,582 | | | | | | 900,240 | | |
Redeemable convertible preferred stock
|
| | | | 131,390 | | | | | | — | | |
Total stockholders’ equity/(deficit)
|
| | | | (664,206) | | | | | | (68,618) | | |
| | |
Year Ended December 31,
|
| |||||||||
($ in thousands)
|
| |
2019
|
| |
2020
|
| ||||||
Cost of revenue
|
| | | $ | 532 | | | | | $ | 780 | | |
Research and product development
|
| | | | 12,087 | | | | | | 21,619 | | |
Marketing and sales
|
| | | | 1,737 | | | | | | 3,144 | | |
General and administrative
|
| | | | 3,619 | | | | | | 5,711 | | |
Total stock-based compensation
|
| | | $ | 17,975 | | | | | $ | 31,254 | | |
| | |
Year Ended
December 31, |
| |||||||||
| | |
2019
|
| |
2020
|
| ||||||
Unique subscriptions (in thousands)(1)
|
| | | | 2,984 | | | | | | 3,656 | | |
Total bookings (in thousands)(2)
|
| | | $ | 514,428 | | | | | $ | 664,739 | | |
Annual run rate revenue (ARRR) (in thousands)(3)
|
| | | $ | 549,156 | | | | | $ | 705,546 | | |
Average revenue per unique subscription (ARPUS)(4)
|
| | | $ | 182 | | | | | $ | 187 | | |
Adjusted EBITDA (in thousands)(5)
|
| | | $ | 97,624 | | | | | $ | 116,666 | | |
Unlevered free cash flow (in thousands)(6)
|
| | | $ | 94,571 | | | | | $ | 152,439 | | |
| | |
As of March 31, 2021
|
| |||||||||
($ in thousands, except share numbers)
|
| |
Actual
|
| |
Pro Forma
|
| ||||||
Cash and cash equivalents
|
| | | $ | | | | | $ | | | ||
Investment in marketable securities
|
| | | | | | | | | | | | |
Debt: | | | | $ | | | | | $ | | | ||
Debt, current portion
|
| | | | | | | | | | | | |
Debt, non-current portion
|
| | | | | | | | | | | | |
Total debt
|
| | | | | | | | | | | | |
Series A-1 redeemable convertible preferred stock, par value $0.0001 per share; shares authorized, actual; no shares authorized, as adjusted; shares issued and outstanding, actual; and no shares issued and outstanding, as adjusted
|
| | | | | | | | | | | | |
Series A-2 redeemable convertible preferred stock, par value $0.0001 per share; shares authorized, actual; no shares authorized, as adjusted; shares issued and outstanding, actual; and no shares issued and outstanding, as adjusted
|
| | | | | | | | | | | | |
Series B redeemable convertible preferred stock, par value $0.0001 per share;
shares authorized, actual; no shares authorized, as adjusted; shares issued and outstanding, actual; and no shares issued and outstanding, as adjusted |
| | | | | | | | | | | | |
Stockholders’ equity/(deficit): | | | | | | | | | | | | | |
Convertible preferred stock, par value $0.0001 per share; no shares authorized,
actual; shares authorized, as adjusted; no shares issued and outstanding, actual; and no shares issued and outstanding, as adjusted |
| | | | | | | | | | | | |
Class A common stock, par value $0.0001 per share; shares authorized, actual; shares authorized, as adjusted; shares issued and outstanding, actual; and shares of Class A common stock issued and outstanding, as adjusted
|
| | | | | | | | | | | | |
Class B common stock, par value $0.0001 per share; shares authorized, actual; shares authorized, as adjusted; shares issued and outstanding, actual; and shares of Class B common stock issued and outstanding, as adjusted
|
| | | | | | | | | | | | |
Class C common stock, par value $0.0001 per share; shares authorized, actual; shares authorized, as adjusted; shares issued and outstanding, actual; and no shares of Class C common stock issued and outstanding, as adjusted
|
| | | | | | | | | | | | |
Additional paid-in capital
|
| | | | | | | | | | | | |
Accumulated other comprehensive income/(loss)
|
| | | | | | | | | | | | |
Accumulated deficit
|
| | | | | | | | | | | | |
Total stockholders’ equity/(deficit)
|
| | | | | | | | | | | | |
Total capitalization
|
| | | $ | | | | | $ | | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |||||||||
($ in thousands, except share and per share data)
|
| |
(Unaudited)
|
| | | |||||||||||||
Consolidated Statements of Operations Information: | | | | | | | | | | | | | | | |||||
Revenue
|
| | | $ | 389,863 | | | | | $ | 484,751 | | | | | $ | 621,149 | | |
Cost of revenue
|
| | | | 70,176 | | | | | | 81,910 | | | | | | 98,337 | | |
Gross profit
|
| | | | 319,687 | | | | | | 402,841 | | | | | | 522,812 | | |
Operating expenses: | | | | | | | | | | | | | | | |||||
Research and product development(1)
|
| | | | 75,916 | | | | | | 107,645 | | | | | | 167,906 | | |
Marketing and sales(1)
|
| | | | 149,022 | | | | | | 184,278 | | | | | | 260,039 | | |
General and administrative(1)
|
| | | | 39,993 | | | | | | 49,578 | | | | | | 54,647 | | |
Total operating expenses
|
| | | | 264,931 | | | | | | 341,501 | | | | | | 482,592 | | |
Operating income
|
| | | | 54,756 | | | | | | 61,340 | | | | | | 40,220 | | |
Interest expense
|
| | | | (173) | | | | | | (1,080) | | | | | | (10,043) | | |
Other income/(loss), net
|
| | | | 2,632 | | | | | | 3,815 | | | | | | (7,678) | | |
Income before (provision for)/benefit from income taxes
|
| | | | 57,215 | | | | | | 64,075 | | | | | | 22,499 | | |
(Provision for)/benefit from income taxes
|
| | | | (14,092) | | | | | | (5,923) | | | | | | 8,089 | | |
Net income
|
| | | $ | 43,123 | | | | | $ | 58,152 | | | | | $ | 30,588 | | |
Net income/(loss) per share attributable to Class A and Class B common stockholders, basic and diluted(2)
|
| | | $ | 0.27 | | | | | $ | (14.91) | | | | | $ | (14.10) | | |
Weighted-average shares used in computing net income/(loss) per
share attributable to Class A and Class B common stockholders, basic and diluted(2) |
| | | | 20,943,219 | | | | | | 17,354,458 | | | | | | 17,917,236 | | |
($ in thousands) | | | | | | | | | | | | | | | |||||
Consolidated Statements of Cash Flows Information: | | | | | | | | | | | | | | | |||||
Net cash provided by operating activities
|
| | | $ | 111,918 | | | | | $ | 102,333 | | | | | $ | 150,030 | | |
Net cash (used in) provided by investing activities
|
| | | | (56,262) | | | | | | (75,323) | | | | | | 34,262 | | |
Net cash used in financing activities
|
| | | | (13,680) | | | | | | (45,827) | | | | | | (170,709) | | |
| | |
As of December 31,
|
| |||||||||
($ in thousands)
|
| |
2019
|
| |
2020
|
| ||||||
Consolidated Balance Sheet Information: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 43,649 | | | | | $ | 57,891 | | |
Investment in marketable securities
|
| | | | 76,784 | | | | | | 37,462 | | |
Total assets
|
| | | | 336,729 | | | | | | 306,766 | | |
Total liabilities
|
| | | | 587,275 | | | | | | 839,582 | | |
Redeemable convertible preferred stock
|
| | | | 126,546 | | | | | | 131,390 | | |
Total stockholders’ equity/(deficit)
|
| | | | (377,092) | | | | | | (664,206) | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |||||||||
($ in thousands)
|
| |
(Unaudited)
|
| | | |||||||||||||
Cost of revenue
|
| | | $ | 281 | | | | | $ | 532 | | | | | $ | 780 | | |
Research and product development
|
| | | | 4,090 | | | | | | 12,087 | | | | | | 21,619 | | |
Marketing and sales
|
| | | | 708 | | | | | | 1,737 | | | | | | 3,144 | | |
General and administrative
|
| | | | 1,939 | | | | | | 3,619 | | | | | | 5,711 | | |
Total stock-based compensation
|
| | | $ | 7,018 | | | | | $ | 17,975 | | | | | $ | 31,254 | | |
| | |
Year Ended
December 31, |
| |||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |||||||||
Unique subscriptions (in thousands)(1)
|
| | | | 2,336 | | | | | | 2,984 | | | | | | 3,656 | | |
Total bookings (in thousands)(2)
|
| | | $ | 426,926 | | | | | $ | 514,418 | | | | | $ | 664,739 | | |
ARRR (in thousands)(3)
|
| | | $ | 425,849 | | | | | $ | 549,156 | | | | | $ | 705,546 | | |
ARPUS(4) | | | | $ | 178 | | | | | $ | 182 | | | | | $ | 187 | | |
Adjusted EBITDA (in thousands)(5)
|
| | | $ | 74,505 | | | | | $ | 97,624 | | | | | $ | 116,666 | | |
Unlevered free cash flow (in thousands)(6)
|
| | | $ | 82,905 | | | | | $ | 94,571 | | | | | $ | 152,439 | | |
| | |
Year Ended
December 31, |
| |||||||||||||||
($ in thousands)
|
| |
2018
|
| |
2019
|
| |
2020
|
| |||||||||
Net income
|
| | | $ | 43,123 | | | | | $ | 58,152 | | | | | $ | 30,588 | | |
Interest expense
|
| | | | 173 | | | | | | 1,080 | | | | | | 10,043 | | |
Other income/(loss), net
|
| | | | (2,632) | | | | | | (3,815) | | | | | | 7,678 | | |
Provision for /(benefit from) income taxes
|
| | | | 14,092 | | | | | | 5,923 | | | | | | (8,089) | | |
Depreciation and amortization
|
| | | | 12,731 | | | | | | 18,309 | | | | | | 21,703 | | |
Stock-based compensation expense
|
| | | | 7,018 | | | | | | 17,975 | | | | | | 31,254 | | |
Special bonus*
|
| | | | — | | | | | | — | | | | | | 23,489 | | |
Adjusted EBITDA
|
| | | $ | 74,505 | | | | | $ | 97,624 | | | | | $ | 116,666 | | |
| | |
2018
|
| |
2019
|
| |
2020
|
| |||||||||
Cost of revenue
|
| | | $ | — | | | | | $ | — | | | | | $ | 1,303 | | |
Research and product development
|
| | | | — | | | | | | — | | | | | | 18,290 | | |
Marketing and sales
|
| | | | — | | | | | | — | | | | | | 3,122 | | |
General and administrative
|
| | | | — | | | | | | — | | | | | | 774 | | |
Total
|
| | | $ | — | | | | | $ | — | | | | | $ | 23,489 | | |
| | |
Year Ended
December 31, |
| |||||||||||||||
($ in thousands)
|
| |
2018
|
| |
2019
|
| |
2020
|
| |||||||||
Cash flow from operating activities
|
| | | $ | 111,918 | | | | | $ | 102,333 | | | | | $ | 150,030 | | |
Cash paid for capital expenditures
|
| | | | (29,163) | | | | | | (8,217) | | | | | | (4,712) | | |
Free cash flow
|
| | | | 82,755 | | | | | | 94,116 | | | | | | 145,318 | | |
Cash paid for interest expense net of the associated tax benefit
|
| | | | 150 | | | | | | 455 | | | | | | 7,121 | | |
Unlevered free cash flow
|
| | | $ | 82,905 | | | | | $ | 94,571 | | | | | $ | 152,439 | | |
| | |
Squarespace
(Historical) |
| |
Tock
(Historical) |
| |
Private
Placement Adjustments |
| | | | |
As Adjusted
Before Acquisition and Listing Adjustments |
| |
Acquisition
Transaction Adjustments |
| | | | |
As Adjusted
Before Listing Adjustments |
| |
Listing
Adjustments |
| | | | |
Pro Forma
Combined |
| ||||||||||||||||||||||||
Cash and cash equivalents
|
| | | $ | 57,891 | | | | | $ | 15,996 | | | | | $ | 304,609 | | | |
a
|
| | | $ | 378,496 | | | | | $ | (238,693) | | | |
c
|
| | | $ | 139,803 | | | | | $ | — | | | | | | | | $ | 139,803 | | |
Restricted cash
|
| | | | — | | | | | | 12,334 | | | | | | — | | | | | | | | | 12,334 | | | | | | — | | | | | | | | | 12,334 | | | | | | — | | | | | | | | | 12,334 | | |
Investment in marketable securities
|
| | | | 37,462 | | | | | | — | | | | | | — | | | | | | | | | 37,462 | | | | | | — | | | | | | | | | 37,462 | | | | | | — | | | | | | | | | 37,462 | | |
Accounts receivable
|
| | | | 7,516 | | | | | | 109 | | | | | | — | | | | | | | | | 7,625 | | | | | | — | | | | | | | | | 7,625 | | | | | | — | | | | | | | | | 7,625 | | |
Prepaid expenses and other current assets
|
| | | | 37,384 | | | | | | 310 | | | | | | — | | | | | | | | | 37,694 | | | | | | 3,402 | | | |
b
e
f
|
| | | | 41,096 | | | | | | — | | | | | | | | | 41,096 | | |
Deferred contract costs, current portion
|
| | | | — | | | | | | 239 | | | | | | — | | | | | | | | | 239 | | | | | | (239) | | | |
b
|
| | | | — | | | | | | — | | | | | | | | | — | | |
Due from vendors
|
| | | | — | | | | | | 2,744 | | | | | | — | | | | | | | | | 2,744 | | | | | | — | | | | | | | | | 2,744 | | | | | | — | | | | | | | | | 2,744 | | |
Total current assets
|
| | | $ | 140,253 | | | | | $ | 31,732 | | | | | $ | 304,609 | | | | | | | | $ | 476,594 | | | | | $ | (235,530) | | | | | | | | $ | 241,064 | | | | | $ | — | | | | | | | | $ | 241,064 | | |
Property and equipment, net
|
| | | | 49,249 | | | | | | 2,798 | | | | | | — | | | | | | | | | 52,047 | | | | | | (2,798) | | | |
e
|
| | | | 49,249 | | | | | | — | | | | | | | | | 49,249 | | |
Deferred income taxes
|
| | | | 7,773 | | | | | | — | | | | | | — | | | | | | | | | 7,773 | | | | | | (7,773) | | | |
g
|
| | | | — | | | | | | — | | | | | | | | | — | | |
Goodwill
|
| | | | 83,171 | | | | | | — | | | | | | — | | | | | | | | | 83,171 | | | | | | 338,705 | | | |
d
|
| | | | 421,876 | | | | | | — | | | | | | | | | 421,876 | | |
Intangible assets, net
|
| | | | 18,868 | | | | | | — | | | | | | — | | | | | | | | | 18,868 | | | | | | 93,000 | | | |
d
|
| | | | 111,868 | | | | | | — | | | | | | | | | 111,868 | | |
Deferred contract costs, net of current
portion |
| | | | — | | | | | | 365 | | | | | | — | | | | | | | | | 365 | | | | | | (365) | | | |
b
|
| | | | — | | | | | | — | | | | | | | | | — | | |
Other assets
|
| | | | 7,452 | | | | | | 113 | | | | | | — | | | | | | | | | 7,565 | | | | | | — | | | |
b
e
|
| | | | 7,565 | | | | | | — | | | | | | | | | 7,565 | | |
Total assets
|
| | | $ | 306,766 | | | | | $ | 35,008 | | | | | $ | 304,609 | | | | | | | | $ | 646,383 | | | | | $ | 185,239 | | | | | | | | $ | 831,622 | | | | | $ | — | | | | | | | | $ | 831,622 | | |
Liabilities, redeemable convertible preferred stock and shareholders’ (deficit) equity
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 16,758 | | | | | $ | 1,561 | | | | | $ | — | | | | | | | | $ | 18,319 | | | | | $ | — | | | | | | | | $ | 18,319 | | | | | $ | — | | | | | | | | $ | 18,319 | | |
Accrued liabilities
|
| | | | 46,779 | | | | | | 1,629 | | | | | | 200 | | | |
a
|
| | | | 48,608 | | | | | | 3,922 | | | |
f
h
|
| | | | 52,530 | | | | | | 34,587 | | | |
i
|
| | | | 87,117 | | |
Deferred revenue
|
| | | | 210,392 | | | | | | 21 | | | | | | — | | | | | | | | | 210,413 | | | | | | (21) | | | |
e
|
| | | | 210,392 | | | | | | — | | | | | | | | | 210,392 | | |
Debt, current portion
|
| | | | 13,586 | | | | | | — | | | | | | — | | | | | | | | | 13,586 | | | | | | — | | | | | | | | | 13,586 | | | | | | — | | | | | | | | | 13,586 | | |
Deferred rent and lease incentives, current portion
|
| | | | 1,197 | | | | | | — | | | | | | — | | | | | | | | | 1,197 | | | | | | — | | | | | | | | | 1,197 | | | | | | — | | | | | | | | | 1,197 | | |
Funds payable and amounts due to customers
|
| | | | — | | | | | | 15,078 | | | | | | — | | | | | | | | | 15,078 | | | | | | — | | | | | | | | | 15,078 | | | | | | — | | | | | | | | | 15,078 | | |
Total current liabilities
|
| | | $ | 288,712 | | | | | $ | 18,289 | | | | | $ | 200 | | | | | | | | $ | 307,201 | | | | | $ | 3,901 | | | | | | | | $ | 311,102 | | | | | $ | 34,587 | | | | | | | | $ | 345,689 | | |
Debt, non-current portion
|
| | | | 525,752 | | | | | | — | | | | | | — | | | | | | | | | 525,752 | | | | | | — | | | | | | | | | 525,752 | | | | | | — | | | | | | | | | 525,752 | | |
Deferred rent and lease incentives, non-current portion
|
| | | | 24,856 | | | | | | — | | | | | | — | | | | | | | | | 24,856 | | | | | | — | | | | | | | | | 24,856 | | | | | | — | | | | | | | | | 24,856 | | |
Other liabilities
|
| | | | 262 | | | | | | 248 | | | | | | — | | | | | | | | | 510 | | | | | | 10,150 | | | |
g
|
| | | | 10,660 | | | | | | (6,717) | | | |
k
|
| | | | 3,943 | | |
Total liabilities
|
| | | $ | 839,582 | | | | | $ | 18,537 | | | | | $ | 200 | | | | | | | | $ | 858,319 | | | | | $ | 14,051 | | | | | | | | $ | 872,370 | | | | | $ | 27,870 | | | | | | | | $ | 900,240 | | |
Commitments and Contingencies | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Redeemable convertible preferred
stock |
| | | | 131,390 | | | | | | — | | | | | | — | | | | | | | | | 131,390 | | | | | | — | | | | | | | | | 131,390 | | | | | | (131,390) | | | |
j
|
| | | | — | | |
Shareholders’ (Deficit) Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Preferred stock
|
| | | | — | | | | | | 1 | | | | | | — | | | | | | | | | 1 | | | | | | (1) | | | |
c
|
| | | | — | | | | | | — | | | | | | | | | — | | |
Common stock
|
| | | | — | | | | | | 1 | | | | | | — | | | | | | | | | 1 | | | | | | (1) | | | |
c
|
| | | | — | | | | | | — | | | | | | | | | — | | |
| | |
Squarespace
(Historical) |
| |
Tock
(Historical) |
| |
Private
Placement Adjustments |
| | | | |
As Adjusted
Before Acquisition and Listing Adjustments |
| |
Acquisition
Transaction Adjustments |
| | | | |
As Adjusted
Before Listing Adjustments |
| |
Listing
Adjustments |
| | | | |
Pro Forma
Combined |
| ||||||||||||||||||||||||
Class A common stock
|
| | | | 1 | | | | | | — | | | | | | — | | | | | | | | | 1 | | | | | | — | | | | | | | | | 1 | | | | | | 5 | | | |
j
|
| | | | 6 | | |
Class B common stock
|
| | | | 1 | | | | | | — | | | | | | — | | | | | | | | | 1 | | | | | | — | | | | | | | | | 1 | | | | | | 5 | | | |
j
k
|
| | | | 6 | | |
Class C common stock
|
| | | | — | | | | | | — | | | | | | — | | | |
a
|
| | | | — | | | | | | — | | | | | | | | | — | | | | | | — | | | |
j
|
| | | | — | | |
Additional paid-in capital
|
| | | | 9,043 | | | | | | 31,141 | | | | | | 304,409 | | | |
a
|
| | | | 344,593 | | | | | | 157,038 | | | |
c
|
| | | | 501,631 | | | | | | 360,668 | | | |
j
k
|
| | | | 862,299 | | |
Accumulated other comprehensive
loss |
| | | | 2,455 | | | | | | — | | | | | | — | | | | | | | | | 2,455 | | | | | | — | | | | | | | | | 2,455 | | | | | | — | | | | | | | | | 2,455 | | |
Accumulated (deficit) equity
|
| | | | (675,706) | | | | | | (14,672) | | | | | | — | | | | | | | | | (690,378) | | | | | | 14,152 | | | |
c
f
h
|
| | | | (676,226) | | | | | | (257,158) | | | |
i
k
|
| | | | (933,384) | | |
Total shareholders’ (deficit) equity
|
| | | | (664,206) | | | | | | 16,471 | | | | | | 304,409 | | | | | | | | | (343,326) | | | | | | 171,188 | | | | | | | | | (172,138) | | | | | | 103,520 | | | | | | | | | (68,618) | | |
Total liabilities, redeemable convertible
preferred stock and shareholders’ (deficit) equity |
| | | $ | 306,766 | | | | | $ | 35,008 | | | | | $ | 304,609 | | | | | | | | $ | 646,383 | | | | | $ | 185,239 | | | | | | | | $ | 831,622 | | | | | $ | — | | | | | | | | $ | 831,622 | | |
|
| | |
Squarespace
(Historical) |
| |
Tock
(Historical) |
| |
Private
Placement Adjustments |
| |
As Adjusted
Before Acquisition and Listing Adjustments |
| |
Acquisition
Transaction Adjustments |
| | | | |
As Adjusted
Before Listing Adjustments |
| |
Listing
Adjustments |
| | | | |
Pro Forma
Combined |
| | | | ||||||||||||||||||||||||
Revenue
|
| | | $ | 621,149 | | | | | $ | 23,028 | | | | | $ | — | | | | | $ | 644,177 | | | | | $ | — | | | | | | | | $ | 644,177 | | | | | $ | — | | | | | | | | $ | 644,177 | | | | | |
Cost of revenue
|
| | | | 98,337 | | | | | | 9,864 | | | | | | — | | | | | | 108,201 | | | | | | 5,461 | | | |
l
m
|
| | | | 113,662 | | | | | | — | | | | | | | | | 113,662 | | | | | |
Gross profit
|
| | | | 522,812 | | | | | | 13,164 | | | | | | — | | | | | | 535,976 | | | | | | (5,461) | | | | | | | | | 530,515 | | | | | | — | | | | | | | | | 530,515 | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Research and product development
|
| | | | 167,906 | | | | | | — | | | | | | — | | | | | | 167,906 | | | | | | 12,178 | | | |
l
n
|
| | | | 180,084 | | | | | | — | | | | | | | | | 180,084 | | | | | |
Marketing and sales
|
| | | | 260,039 | | | | | | 4,949 | | | | | | — | | | | | | 264,988 | | | | | | 7,664 | | | |
l
m
|
| | | | 272,652 | | | | | | — | | | | | | | | | 272,652 | | | | | |
General and administrative
|
| | | | 54,647 | | | | | | 9,026 | | | | | | — | | | | | | 63,673 | | | | | | (3,412) | | | |
l
m
o
|
| | | | 60,261 | | | | | | 263,875 | | | |
q
r
|
| | | | 324,136 | | | | | |
Total operating expenses
|
| | | | 482,592 | | | | | | 13,975 | | | | | | — | | | | | | 496,567 | | | | | | 16,430 | | | | | | | | | 512,997 | | | | | | 263,875 | | | | | | | | | 776,872 | | | | | |
Operating income / (loss)
|
| | | | 40,220 | | | | | | (811) | | | | | | — | | | | | | 39,409 | | | | | | (21,891) | | | | | | | | | 17,518 | | | | | | (263,875) | | | | | | | | | (246,357) | | | | | |
Other income (expenses) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | (10,043) | | | | | | — | | | | | | — | | | | | | (10,043) | | | | | | — | | | | | | | | | (10,043) | | | | | | — | | | | | | | | | (10,043) | | | | | |
Other income / (expense), net
|
| | | | (7,678) | | | | | | 11 | | | | | | — | | | | | | (7,667) | | | | | | — | | | | | | | | | (7,667) | | | | | | — | | | | | | | | | (7,667) | | | | | |
Income before (provision for) benefit
from income taxes |
| | | | 22,499 | | | | | | (800) | | | | | | — | | | | | | 21,699 | | | | | | (21,891) | | | | | | | | | (192) | | | | | | (263,875) | | | | | | | | | (264,067) | | | | | |
(Provision for) / benefit from income
taxes |
| | | | 8,089 | | | | | | — | | | | | | — | | | | | | 8,089 | | | | | | (4,958) | | | |
p
|
| | | | 3,131 | | | | | | (6,717) | | | |
s
|
| | | | (3,586) | | | | | |
Net income / (loss)
|
| | | $ | 30,588 | | | | | $ | (800) | | | | |
|
—
|
| | | | $ | 29,788 | | | | | | (26,849) | | | | | | | | $ | 2,939 | | | | | | (270,592) | | | | | | | | $ | (267,653) | | | | | |
Accretion of redeemable convertible
preferred stock to redemption value |
| | | $ | (4,844) | | | | | $ | — | | | | | $ | — | | | | | $ | (4,844) | | | | | $ | — | | | | | | | | $ | (4,844) | | | | | | | | | | | | | | $ | (4,844) | | | | | |
Deemed dividends upon repurchase
of redeemable convertible preferred stock |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | — | | | | | | | | | — | | | | | |
Declared dividends to preferred shareholders
|
| | | | (278,454) | | | | | | — | | | | | | — | | | | | | (278,454) | | | | | | — | | | | | | | | | (278,454) | | | | | | — | | | | | | | | | (278,454) | | | | | |
Net loss attributable to Class A and Class B common stockholders
|
| | | $ | (252,710) | | | | | $ | (800) | | | | | $ | — | | | | | $ | (253,510) | | | | | $ | (26,849) | | | | | | | | $ | (280,359) | | | | | $ | (270,592) | | | | | | | | $ | (550,951) | | | | | |
Net loss per share attributable to common stockholders, basic and diluted
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (4.11) | | | |
t
|
|
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 134,172,935 | | | |
t
|
|
|
Cash and cash equivalents
|
| | | $ | 15,996 | | |
|
Restricted cash
|
| | | | 12,334 | | |
|
Accounts receivable
|
| | | | 109 | | |
|
Prepaid expenses and other current assets
|
| | | | 310 | | |
|
Prepaid expenses and other current assets – indemnification assets
|
| | | | 3,402 | | |
|
Due from vendors
|
| | | | 2,744 | | |
|
Other assets
|
| | | | 113 | | |
|
Intangible assets
|
| | | | 93,000 | | |
|
Accounts payable
|
| | | | (1,561) | | |
|
Accrued expenses
|
| | | | (1,629) | | |
|
Accrued expenses – sales tax
|
| | | | (3,402) | | |
|
Funds payable and amounts due to customers
|
| | | | (15,078) | | |
|
Other liabilities – deferred tax liabilities
|
| | | | (17,923) | | |
|
Other liabilities
|
| | | | (248) | | |
|
Estimated net asset assumed
|
| | | $ | 88,167 | | |
|
Estimated consideration
|
| | | | 426,872 | | |
|
Estimated goodwill
|
| | | $ | 338,705 | | |
Intangible Assets
|
| |
Approximate
Fair Value |
| |
Estimated
Useful Life |
| ||||||
| | |
(in thousands)
|
| |
(in years)
|
| ||||||
Customer relationships – Restaurants
|
| | | $ | 64,000 | | | | | | 12.0 | | |
Customer relationships – Enterprise
|
| | | | 19,000 | | | | | | 12.0 | | |
Tradename
|
| | | | 6,000 | | | | | | 5.0 | | |
Software and technologies
|
| | | | 4,000 | | | | | | 3.0 | | |
Total
|
| | | $ | 93,000 | | | | | | | | |
|
Total consideration
|
| | | $ | 426,872 | | |
| Less: | | | | | | | |
|
Preferred stock
|
| | | | 1 | | |
|
Common Stock
|
| | | | 1 | | |
|
Additional paid in capital
|
| | | | 31,141 | | |
|
Accumulated deficit
|
| | | | (14,672) | | |
|
Identifiable intangible assets
|
| | | | 93,000 | | |
|
Other adjustments
|
| | | | (21,304) | | |
|
Goodwill – related to the Acquisition
|
| | | $ | 338,705 | | |
Intangible Assets
|
| |
Amortization
Expense |
| |
Classification
|
| |||
Customer relationships – Restaurants
|
| | | $ | 5,333 | | | |
Marketing and sales
|
|
Customer relationships – Enterprise
|
| | | | 1,583 | | | |
Marketing and sales
|
|
Tradename
|
| | | | 1,200 | | | |
General and administrative
|
|
Software and technologies
|
| | | | 1,333 | | | |
Cost of revenue
|
|
Total
|
| | | $ | 9,449 | | | | | |
| Numerator: | | | | | | | |
|
Pro forma net loss attributable to Class A and Class B common stockholders
|
| | | $ | (550,951) | | |
| Denominator: | | | | | | | |
|
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted
|
| | | | 17,917,236 | | |
|
Pro forma adjustment to reflect the issuance of Class C common stock in the Private Placement and conversion to Class A common stock
|
| | | | 4,452,023 | | |
|
Pro forma adjustment to reflect the issuance of Class C common stock in the Acquisition and conversion to Class A common stock
|
| | | | 2,750,330 | | |
|
Pro forma adjustment to reflect the vesting of restricted stock units issued related
to the Acquisition |
| | | | 146,156 | | |
|
Pro forma adjustment to reflect the assumed conversion of the redeemable convertible preferred stock to Class A and Class B common stock
|
| | | | 104,446,332 | | |
|
Pro forma adjustment to reflect the vesting of Class B common stock as a result of the Listing
|
| | | | 4,460,858 | | |
|
Weighted-average shares used in computing pro forma net loss per share attributable to Class A and Class B common stockholders, basic and diluted
|
| | | | 134,172,935 | | |
|
Pro forma net loss per share attributable to Class A and Class B common stockholders, basic and diluted
|
| | | $ | (4.11) | | |
|
| | |
Year Ended December 31,
|
| |||||||||
($ in thousands)
|
| |
2019
|
| |
2020
|
| ||||||
Revenue
|
| | | $ | 484,751 | | | | | $ | 621,149 | | |
Cost of revenue(1)
|
| | | | 81,910 | | | | | | 98,337 | | |
Gross profit
|
| | | | 402,841 | | | | | | 522,812 | | |
Operating expenses: | | | | | | | | | | | | | |
Research and product development(1)
|
| | | | 107,645 | | | | | | 167,906 | | |
Marketing and sales(1)
|
| | | | 184,278 | | | | | | 260,039 | | |
General and administrative(1)
|
| | | | 49,578 | | | | | | 54,647 | | |
Total operating expenses
|
| | | | 341,501 | | | | | | 482,592 | | |
Operating income
|
| | | | 61,340 | | | | | | 40,220 | | |
Interest expense
|
| | | | (1,080) | | | | | | (10,043) | | |
Other income/(loss), net
|
| | | | 3,815 | | | | | | (7,678) | | |
Income before (provision for)/benefit from income taxes
|
| | | | 64,075 | | | | | | 22,499 | | |
(Provision for)/benefit from income taxes
|
| | | | (5,923) | | | | | | 8,089 | | |
Net income
|
| | | $ | 58,152 | | | | | $ | 30,588 | | |
| | |
Year Ended December 31,
|
| |||||||||
($ in thousands)
|
| |
2019
|
| |
2020
|
| ||||||
Cost of revenue
|
| | | $ | 532 | | | | | $ | 780 | | |
Research and product development
|
| | | | 12,087 | | | | | | 21,619 | | |
Marketing and sales
|
| | | | 1,737 | | | | | | 3,144 | | |
General and administrative
|
| | | | 3,619 | | | | | | 5,711 | | |
Total stock-based compensation
|
| | | $ | 17,975 | | | | | $ | 31,254 | | |
| | |
Year Ended
December 31, |
| |||||||||
| | |
2019
|
| |
2020
|
| ||||||
Revenue
|
| | | | 100% | | | | | | 100% | | |
Cost of revenue
|
| | | | 16.9 | | | | | | 15.8 | | |
Gross profit
|
| | | | 83.1 | | | | | | 84.2 | | |
Operating expenses: | | | | | | | | | | | | | |
Research and product development
|
| | | | 22.2 | | | | | | 27.0 | | |
Marketing and sales
|
| | | | 38.0 | | | | | | 41.9 | | |
General and administrative
|
| | | | 10.2 | | | | | | 8.8 | | |
Total operating expenses
|
| | | | 70.4 | | | | | | 77.7 | | |
Operating income
|
| | | | 12.7 | | | | | | 6.5 | | |
Interest expense
|
| | | | (0.2) | | | | | | (1.6) | | |
| | |
Year Ended
December 31, |
| |||||||||
| | |
2019
|
| |
2020
|
| ||||||
Other income/(loss), net
|
| | | | 0.8 | | | | | | (1.3) | | |
Income before (provision for)/benefit from income taxes
|
| | | | 13.3 | | | | | | 3.6 | | |
(Provision for)/benefit from income taxes
|
| | | | (1.3) | | | | | | 1.3 | | |
Net income
|
| | | | 12.0% | | | | | | 4.9% | | |
|
| | |
Year Ended December 31,
|
| |
Change
|
| ||||||||||||||||||
($ in thousands, except percentages)
|
| |
2019
|
| |
2020
|
| |
Amount
|
| |
%
|
| ||||||||||||
United States
|
| | | $ | 343,051 | | | | | $ | 430,118 | | | | | $ | 87,067 | | | | | | 25.4% | | |
International
|
| | | | 141,700 | | | | | | 191,031 | | | | | | 49,331 | | | | | | 34.8% | | |
Total revenue
|
| | | $ | 484,751 | | | | | $ | 621,149 | | | | | $ | 136,398 | | | | | | 28.1% | | |
Percentage of total revenue: | | | | | | | | | | | | | | | | | | | | | | | | | |
United States
|
| | | | 70.8% | | | | | | 69.2% | | | | | | | | | | | | | | |
International
|
| | | | 29.2 | | | | | | 30.8 | | | | | | | | | | | | | | |
Total revenue
|
| | | | 100% | | | | | | 100% | | | | | | | | | | | | | | |
| | |
Year Ended December 31,
|
| |
Change
|
| ||||||||||||||||||
($ in thousands, except percentages)
|
| |
2019
|
| |
2020
|
| |
Amount
|
| |
%
|
| ||||||||||||
Presence
|
| | | $ | 404,156 | | | | | $ | 477,831 | | | | | $ | 73,675 | | | | | | 18.2% | | |
Commerce
|
| | | | 80,595 | | | | | | 143,318 | | | | | | 62,723 | | | | | | 77.8% | | |
Total revenue
|
| | | $ | 484,751 | | | | | $ | 621,149 | | | | | $ | 136,398 | | | | | | 28.1% | | |
Percentage of total revenue: | | | | | | | | | | | | | | | | | | | | | | | | | |
Presence
|
| | | | 83.4% | | | | | | 76.9% | | | | | | | | | | | | | | |
Commerce
|
| | | | 16.6 | | | | | | 23.1 | | | | | | | | | | | | | | |
Total revenue
|
| | | | 100% | | | | | | 100% | | | | | | | | | | | | | | |
| | |
Year Ended December 31,
|
| |
Change
|
| ||||||||||||||||||
($ in thousands, except percentages)
|
| |
2019
|
| |
2020
|
| |
Amount
|
| |
%
|
| ||||||||||||
Cost of revenue
|
| | | $ | 81,910 | | | | | $ | 98,337 | | | | | $ | 16,427 | | | | | | 20.1% | | |
Gross profit
|
| | | $ | 402,841 | | | | | $ | 522,812 | | | | | $ | 119,971 | | | | | | 29.8% | | |
Percentage of total revenue: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue
|
| | | | 16.9% | | | | | | 15.8% | | | | | | | | | | | | | | |
Gross profit
|
| | | | 83.1% | | | | | | 84.2% | | | | | | | | | | | | | | |
| | |
Year Ended December 31,
|
| |
Change
|
| ||||||||||||||||||
($ in thousands, except percentages)
|
| |
2019
|
| |
2020
|
| |
Amount
|
| |
%
|
| ||||||||||||
Research and product development
|
| | | $ | 107,645 | | | | | $ | 167,906 | | | | | $ | 60,261 | | | | | | 56.0% | | |
Percentage of total revenue
|
| | | | 22.2% | | | | | | 27.0% | | | | | | | | | | | | | | |
| | |
Year Ended December 31,
|
| |
Change
|
| ||||||||||||||||||
($ in thousands, except percentages)
|
| |
2019
|
| |
2020
|
| |
Amount
|
| |
%
|
| ||||||||||||
Marketing and sales
|
| | | $ | 184,278 | | | | | $ | 260,039 | | | | | $ | 75,761 | | | | | | 41.1% | | |
Percentage of total revenue
|
| | | | 38.0% | | | | | | 41.9% | | | | | | | | | | | | | | |
| | |
Year Ended December 31,
|
| |
Change
|
| ||||||||||||||||||
($ in thousands, except percentages)
|
| |
2019
|
| |
2020
|
| |
Amount
|
| |
%
|
| ||||||||||||
General and administrative
|
| | | $ | 49,578 | | | | | $ | 54,647 | | | | | $ | 5,069 | | | | | | 10.2% | | |
Percentage of total revenue
|
| | | | 10.2% | | | | | | 8.8% | | | | | | | | | | | | | | |
| | |
Year Ended December 31,
|
| |
Change
|
| ||||||||||||||||||
($ in thousands, except percentages)
|
| |
2019
|
| |
2020
|
| |
Amount
|
| |
%
|
| ||||||||||||
Interest expense
|
| | | $ | (1,080) | | | | | $ | (10,043) | | | | | $ | 8,963 | | | | | | 829.9% | | |
Percentage of total revenue
|
| | | | (0.2)% | | | | | | (1.6)% | | | | | | | | | | | | | | |
| | |
Year Ended December 31,
|
| |
Change
|
| ||||||||||||||||||
($ in thousands, except percentages)
|
| |
2019
|
| |
2020
|
| |
Amount
|
| |
%
|
| ||||||||||||
Other income/(loss), net
|
| | | $ | 3,815 | | | | | $ | (7,678) | | | | | $ | (11,493) | | | | | | (301.3)% | | |
Percentage of total revenue
|
| | | | 0.8% | | | | | | (1.3)% | | | | | | | | | | | | | | |
| | |
Year Ended
December 31, |
| |||||||||
| | |
2019
|
| |
2020
|
| ||||||
Unique subscriptions (in thousands)
|
| | | | 2,984 | | | | | | 3,656 | | |
Total bookings (in thousands)
|
| | | $ | 514,418 | | | | | $ | 664,739 | | |
ARRR (in thousands)
|
| | | $ | 549,156 | | | | | $ | 705,546 | | |
| | |
Year Ended
December 31, |
| |||||||||
| | |
2019
|
| |
2020
|
| ||||||
ARPUS
|
| | | $ | 182 | | | | | $ | 187 | | |
Adjusted EBITDA (in thousands)
|
| | | $ | 97,624 | | | | | $ | 116,666 | | |
Unlevered free cash flow (in thousands)
|
| | | $ | 94,571 | | | | | $ | 152,439 | | |
GMV (in thousands)
|
| | | $ | 2,043,195 | | | | | $ | 3,897,241 | | |
| | |
Year Ended December 31,
|
| |||||||||
($ in thousands)
|
| |
2019
|
| |
2020
|
| ||||||
Net cash provided by (used in): | | | | | | | | | | | | | |
Operating activities
|
| | | $ | 102,333 | | | | | $ | 150,030 | | |
Investing activities
|
| | | $ | (75,323) | | | | | $ | 34,262 | | |
Financing activities
|
| | | $ | (45,827) | | | | | $ | (170,709) | | |
| | |
Payments Due by Period
|
| |||||||||||||||||||||||||||||||||||||||
($ in thousands)
|
| |
2021
|
| |
2022
|
| |
2023
|
| |
2024
|
| |
2025
|
| |
Thereafter
|
| |
Total
|
| |||||||||||||||||||||
Credit Agreement
obligations |
| | | $ | 13,586 | | | | | $ | 13,586 | | | | | $ | 40,758 | | | | | $ | 40,758 | | | | | $ | 434,749 | | | | | $ | — | | | | | $ | 543,437 | | |
Operating lease payments
|
| | | | 13,890 | | | | | | 14,192 | | | | | | 14,054 | | | | | | 14,557 | | | | | | 13,965 | | | | | | 72,648 | | | | | | 143,306 | | |
Total contractual obligations
|
| | | $ | 27,476 | | | | | $ | 27,778 | | | | | $ | 54,812 | | | | | $ | 55,315 | | | | | $ | 448,714 | | | | | $ | 72,648 | | | | | $ | 686,743 | | |
Name
|
| |
Age
|
| |
Position
|
|
Anthony Casalena | | |
38
|
| | Founder, Chief Executive Officer and Chairperson of the Board | |
Paul Gubbay | | |
53
|
| | Chief Product Officer | |
Marcela Martin | | |
49
|
| | Chief Financial Officer | |
Courtenay O’Connor | | |
41
|
| | General Counsel and Secretary | |
Andrew Braccia | | |
45
|
| | Director | |
Michael Fleisher | | |
56
|
| | Director | |
Jonathan Klein | | |
60
|
| | Director | |
Liza Landsman | | |
51
|
| | Director | |
Anton Levy | | |
46
|
| | Director | |
Name and Principal
Position |
| |
Year
|
| |
Salary
($)(1) |
| |
Bonus
($)(2) |
| |
Stock
Awards ($)(3) |
| |
All Other
Compensation ($) |
| |
Total
($) |
| ||||||||||||||||||
Anthony Casalena
Chief Executive Officer |
| | | | 2020 | | | | | | 650,000 | | | | | | — | | | | | | — | | | | | | 475,336(4) | | | | | | 1,125,336 | | |
Marcela Martin
Chief Financial Officer |
| | | | 2020 | | | | | | 104,167 | | | | | | 200,000 | | | | | | 2,900,012 | | | | | | 157,668(5) | | | | | | 3,361,847 | | |
Paul Gubbay
Chief Product Officer |
| | | | 2020 | | | | | | 260,417 | | | | | | 525,000 | | | | | | 2,700,017 | | | | | | 2,768(6) | | | | | | 3,488,202 | | |
| | |
Stock Awards
|
| |||||||||
Name
|
| |
Number of Shares or Units of Stock
That Have Not Vested |
| |
Market Value of Shares or Units of
Stock That Have Not Vested ($)(1) |
| ||||||
Anthony Casalena
|
| | | | 4,460,858(2) | | | | | | 218,582,042 | | |
Marcela Martin
|
| | | | 61,480(3) | | | | | | 3,012,520 | | |
Paul Gubbay
|
| | | | 55,797(4) | | | | | | 2,734,053 | | |
Company Stock Price Target
|
| |
Cumulative Number
of Shares to Vest |
| |||
$105.00
|
| | | | 275,000 | | |
$140.00
|
| | | | 550,000 | | |
$175.00
|
| | | | 825,000 | | |
$210.00
|
| | | | 1,100,000 | | |
$245.00
|
| | | | 1,375,000 | | |
$280.00
|
| | | | 1,650,000 | | |
$315.00
|
| | | | 1,925,000 | | |
$350.00
|
| | | | 2,200,000 | | |
$385.00
|
| | | | 2,475,000 | | |
$420.00
|
| | | | 2,750,000 | | |
Title
|
| |
Ownership
Guideline |
| |||
Chief Executive Officer
|
| | | | 6x | | |
Senior Vice President and Above
|
| | | | 1x | | |
Non-Employee Director
|
| | | | 1x | | |
Name(1)
|
| |
Fees Earned or
Paid in Cash ($)(2) |
| |
Stock
Awards ($)(3)(4) |
| |
Total
($) |
| |||||||||
Jonathan Klein
|
| | | | 40,000 | | | | | | 169,987 | | | | | | 209,987 | | |
Liza Landsman
|
| | | | 40,000 | | | | | | 169,987 | | | | | | 209,987 | | |
Michael Fleisher
|
| | | | 60,000 | | | | | | 169,987 | | | | | | 229,987 | | |
Stockholder
|
| |
Aggregate
Purchase Price ($) |
| |||
Entities affiliated with Accel
|
| | | | 40,000,003 | | |
Entities affiliated with General Atlantic
|
| | | | 40,000,003 | | |
Stockholder
|
| |
Aggregate
Purchase Price ($) |
| |||
Anthony Casalena
|
| | | | 96,810,428 | | |
Johnathan Klein
|
| | | | 4,145,940 | | |
Entities affiliated with Accel
|
| | | | 60,505,503 | | |
Entities affiliated with General Atlantic
|
| | | | 108,348,829 | | |
Entities affiliated with Index Ventures
|
| | | | 78,868,580 | | |
| | |
Shares Beneficially Owned
|
| | | | |||||||||||||||||||||||||||
| | |
Class A
|
| |
Class B+
|
| |
Total
Voting† % |
| |
Shares of Class A
Common Stock Being Registered |
| |||||||||||||||||||||
| | |
Shares
|
| |
%
|
| |
Shares
|
| |
%
|
| |||||||||||||||||||||
Directors and Executive Officers: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Anthony Casalena(1)
|
| | | | — | | | | | | * | | | | | | 49,086,410 | | | | | | 75.7 | | | | | | 68.2 | | | | | |
Paul Gubbay
|
| | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | * | | | | | |
Marcela Martin
|
| | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | * | | | | | |
Andrew Braccia(2)
|
| | | | 15,514,196 | | | | | | 21.9 | | | | | | — | | | | | | * | | | | | | 2.2 | | | | | |
Michael Fleisher
|
| | | | 38,236 | | | | | | * | | | | | | — | | | | | | * | | | | | | * | | | | | |
Jonathan Klein(3)
|
| | | | 208,438 | | | | | | * | | | | | | 680,064 | | | | | | 1.1 | | | | | | * | | | | | |
Liza Landsman
|
| | | | 20,886 | | | | | | * | | | | | | — | | | | | | * | | | | | | * | | | | | |
Anton Levy
|
| | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | * | | | | | |
All executive officers and directors as a group (9 persons)(4)
|
| | | | 15,816,201 | | | | | | 22.3 | | | | | | 49,772,374 | | | | | | 76.7 | | | | | | 71.3 | | | | | |
Other 5% Stockholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Entities affiliated with Accel(5)
|
| | | | 15,514,196 | | | | | | 21.9 | | | | | | — | | | | | | * | | | | | | 2.2 | | | | | |
Entities affiliated with General Atlantic(6)
|
| | | | 22,361,073 | | | | | | 31.5 | | | | | | 4,958,345 | | | | | | 7.6 | | | | | | 9.9 | | | | | |
Entities affiliated with Index
Ventures(7) |
| | | | 19,460,619 | | | | | | 27.4 | | | | | | — | | | | | | * | | | | | | 2.7 | | | | | |
Other Registered Stockholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-Executive Officers Holding Common Stock
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
All Other Registered Stockholders
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
Page
|
| |||
Squarespace, Inc. | | | | | | | |
| | | | F-2 | | | |
Consolidated Financial Statements: | | | | | | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-7 | | | |
| | | | F-8 | | | |
Tock, Inc. | | | | | | | |
| | | | F-46 | | | |
Financial Statements | | | | | | | |
| | | | F-47 | | | |
| | | | F-49 | | | |
| | | | F-50 | | | |
| | | | F-51 | | | |
| | | | F-52 | | |
| | |
December 31, 2019
|
| |
December 31, 2020
|
| ||||||
Assets | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 43,649 | | | | | $ | 57,891 | | |
Investment in marketable securities
|
| | | | 76,784 | | | | | | 37,462 | | |
Account receivables
|
| | | | 4,573 | | | | | | 7,516 | | |
Prepaid expenses and other current assets
|
| | | | 36,745 | | | | | | 37,384 | | |
Total current assets
|
| | | | 161,751 | | | | | | 140,253 | | |
Property and equipment, net
|
| | | | 60,137 | | | | | | 49,249 | | |
Deferred income taxes
|
| | | | 2,896 | | | | | | 7,773 | | |
Goodwill
|
| | | | 83,171 | | | | | | 83,171 | | |
Intangible assets, net
|
| | | | 26,185 | | | | | | 18,868 | | |
Other assets
|
| | | | 2,589 | | | | | | 7,452 | | |
Total assets
|
| | | $ | 336,729 | | | | | $ | 306,766 | | |
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity/ (Deficit)
|
| | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 3,204 | | | | | $ | 16,758 | | |
Accrued liabilities
|
| | | | 46,392 | | | | | | 46,779 | | |
Deferred revenue
|
| | | | 164,428 | | | | | | 210,392 | | |
Debt, current portion
|
| | | | 8,750 | | | | | | 13,586 | | |
Deferred rent and lease incentives, current portion
|
| | | | 939 | | | | | | 1,197 | | |
Total current liabilities
|
| | | | 223,713 | | | | | | 288,712 | | |
Debt, non-current portion
|
| | | | 339,429 | | | | | | 525,752 | | |
Deferred rent and lease incentives, non-current portion
|
| | | | 23,909 | | | | | | 24,856 | | |
Other liabilities
|
| | | | 224 | | | | | | 262 | | |
Total liabilities
|
| | | | 587,275 | | | | | | 839,582 | | |
Commitments and contingencies (see Note 13) | | | | | | | | | | | | | |
Redeemable convertible preferred stock, par value of $0.0001; 118,117,738 shares authorized; 104,446,332 shares issued and outstanding as of December 31, 2019 and 2020, respectively
|
| | | | 126,546 | | | | | | 131,390 | | |
Stockholders’ equity/(deficit): | | | | | | | | | | | | | |
Class A common stock, par value of $0.0001; 159,000,000 shares
authorized; 8,185,625 and 8,903,770 shares issued and outstanding as of December 31, 2019 and 2020, respectively |
| | | | 1 | | | | | | 1 | | |
Class B common stock, par value of $0.0001; 93,782,222 shares authorized; 13,470,755 and 14,368,532 shares issued and outstanding as of December 31, 2019 and 2020, respectively
|
| | | | 1 | | | | | | 1 | | |
Additional paid in capital
|
| | | | 1,196 | | | | | | 9,043 | | |
Accumulated other comprehensive income/(loss)
|
| | | | (108) | | | | | | 2,455 | | |
Accumulated deficit
|
| | | | (378,182) | | | | | | (675,706) | | |
Total stockholders’ deficit
|
| | | | (377,092) | | | | | | (664,206) | | |
Total liabilities, redeemable convertible preferred stock and stockholders’ equity/(deficit)
|
| | | $ | 336,729 | | | | | $ | 306,766 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2020
|
| ||||||
Revenue
|
| | | $ | 484,751 | | | | | $ | 621,149 | | |
Cost of revenue
|
| | | | 81,910 | | | | | | 98,337 | | |
Gross profit
|
| | | | 402,841 | | | | | | 522,812 | | |
Operating expenses: | | | | | | | | | | | | | |
Research and product development
|
| | | | 107,645 | | | | | | 167,906 | | |
Marketing and sales
|
| | | | 184,278 | | | | | | 260,039 | | |
General and administrative
|
| | | | 49,578 | | | | | | 54,647 | | |
Total operating expenses
|
| | | | 341,501 | | | | | | 482,592 | | |
Operating income
|
| | | | 61,340 | | | | | | 40,220 | | |
Interest expense
|
| | | | (1,080) | | | | | | (10,043) | | |
Other income/(loss), net
|
| | | | 3,815 | | | | | | (7,678) | | |
Income before (provision for)/benefit from income taxes
|
| | | | 64,075 | | | | | | 22,499 | | |
(Provision for)/benefit from income taxes
|
| | | | (5,923) | | | | | | 8,089 | | |
Net income
|
| | | $ | 58,152 | | | | | $ | 30,588 | | |
Accretion of redeemable convertible preferred stock to redemption value
|
| | | | (5,340) | | | | | | (4,844) | | |
Deemed dividends upon repurchase of redeemable convertible preferred
stock |
| | | | (311,610) | | | | | | — | | |
Declared dividends to preferred shareholders
|
| | | | — | | | | | | (278,454) | | |
Net loss attributable to Class A and Class B common stockholders
|
| | | $ | (258,798) | | | | | $ | (252,710) | | |
Net loss per share attributable to Class A and Class B common stockholders,
basic and diluted |
| | | $ | (14.91) | | | | | $ | (14.10) | | |
Weighted-average shares used in computing net loss per share attributable to Class A and Class B stockholders, basic and diluted
|
| | | | 17,354,458 | | | | | | 17,917,236 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2020
|
| ||||||
Net income
|
| | | $ | 58,152 | | | | | $ | 30,588 | | |
Other comprehensive income/(loss): | | | | | | | | | | | | | |
Foreign currency translation adjustment
|
| | | | (86) | | | | | | 2,528 | | |
Unrealized gain on marketable securities, net of income taxes of $44 and $11, respectively
|
| | | | 134 | | | | | | 35 | | |
Total other comprehensive income/(loss)
|
| | | | 48 | | | | | | 2,563 | | |
Total comprehensive income/(loss)
|
| | | $ | 58,200 | | | | | $ | 33,151 | | |
| | |
Redeemable
Convertible Preferred Stock |
| | |
Class A
Common Stock |
| |
Class B
Common Stock |
| |
Additional Paid
in Capital |
| |
Accumulated
Other Comprehensive Income/(Loss) |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Equity/ (Deficit) |
| |||||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018
|
| | | | 118,117,738 | | | | | $ | 144,819 | | | | | | | 8,030,251 | | | | | $ | 1 | | | | | | 13,359,956 | | | | | $ | 1 | | | | | $ | 3,187 | | | | | $ | (156) | | | | | $ | (81,098) | | | | | $ | (78,065) | | |
Stock based compensation
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 18,321 | | | | | | — | | | | | | — | | | | | | 18,321 | | |
Stock option exercises
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 2,481,266 | | | | | | — | | | | | | 3,982 | | | | | | — | | | | | | — | | | | | | 3,982 | | |
Vested RSUs converted to common shares
|
| | | | — | | | | | | — | | | | | | | 385,735 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Repurchase of Class A common
stock and retirement |
| | | | — | | | | | | — | | | | | | | (184,779) | | | | | | — | | | | | | — | | | | | | — | | | | | | (3,340) | | | | | | — | | | | | | — | | | | | | (3,340) | | |
Tender offer repurchase and share retirement
|
| | | | — | | | | | | — | | | | | | | (34,104) | | | | | | — | | | | | | (1,779,290) | | | | | | — | | | | | | (15,614) | | | | | | — | | | | | | (28,849) | | | | | | (44,463) | | |
Investor repurchase and share retirement
|
| | | | (13,671,406) | | | | | | (23,613) | | | | | | | (11,478) | | | | | | — | | | | | | (591,177) | | | | | | — | | | | | | — | | | | | | — | | | | | | (326,387) | | | | | | (326,387) | | |
Accretion of redeemable convertible preferred stock
|
| | | | — | | | | | | 5,340 | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (5,340) | | | | | | — | | | | | | — | | | | | | (5,340) | | |
Net income
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 58,152 | | | | | | 58,152 | | |
Total impact on comprehensive income, net of taxes
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 48 | | | | | | — | | | | | | 48 | | |
Balance at December 31, 2019
|
| | | | 104,446,332 | | | | | $ | 126,546 | | | | | | | 8,185,625 | | | | | $ | 1 | | | | | | 13,470,755 | | | | | $ | 1 | | | | | $ | 1,196 | | | | | $ | (108) | | | | | $ | (378,182) | | | | | $ | (377,092) | | |
Stock based compensation
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 31,417 | | | | | | — | | | | | | — | | | | | | 31,417 | | |
Stock option exercises
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 897,777 | | | | | | — | | | | | | 1,435 | | | | | | — | | | | | | — | | | | | | 1,435 | | |
Vested RSUs converted to common shares
|
| | | | — | | | | | | — | | | | | | | 1,366,242 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Repurchase of Class A common
stock and retirement |
| | | | — | | | | | | — | | | | | | | (648,097) | | | | | | — | | | | | | — | | | | | | — | | | | | | (20,161) | | | | | | — | | | | | | — | | | | | | (20,161) | | |
Investor repurchase and share retirement
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Accretion of redeemable convertible preferred stock
|
| | | | — | | | | | | 4,844 | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,844) | | | | | | — | | | | | | — | | | | | | (4,844) | | |
Dividends declared
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (328,112) | | | | | | (328,112) | | |
Net income
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 30,588 | | | | | | 30,588 | | |
Total other comprehensive income, net of taxes
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,563 | | | | | | — | | | | | | 2,563 | | |
Balance at December 31, 2020
|
| | | | 104,446,332 | | | | | $ | 131,390 | | | | | | | 8,903,770 | | | | | $ | 1 | | | | | | 14,368,532 | | | | | $ | 1 | | | | | $ | 9,043 | | | | | $ | 2,455 | | | | | $ | (675,706) | | | | | $ | (664,206) | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2020
|
| ||||||
OPERATING ACTIVITIES: | | | | | | | | | | | | | |
Net income
|
| | | $ | 58,152 | | | | | $ | 30,588 | | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 18,309 | | | | | | 21,703 | | |
Stock-based compensation
|
| | | | 17,975 | | | | | | 31,254 | | |
Deferred income taxes
|
| | | | (4,018) | | | | | | (4,852) | | |
Other
|
| | | | (310) | | | | | | 2,437 | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Accounts receivable
|
| | | | (133) | | | | | | (2,936) | | |
Prepaid expenses and other current assets
|
| | | | (17,910) | | | | | | 8,659 | | |
Accounts payable and accrued liabilities
|
| | | | 987 | | | | | | 27,115 | | |
Deferred revenue
|
| | | | 30,347 | | | | | | 40,104 | | |
Deferred rent and lease incentives
|
| | | | 200 | | | | | | 1,199 | | |
Other operating assets and liabilities
|
| | | | (1,266) | | | | | | (5,241) | | |
Net cash provided by operating activities
|
| | | | 102,333 | | | | | | 150,030 | | |
INVESTING ACTIVITIES: | | | | | | | | | | | | | |
Proceeds from the sale and maturities of marketable securities
|
| | | | 174,583 | | | | | | 148,762 | | |
Purchases of marketable securities
|
| | | | (145,850) | | | | | | (109,966) | | |
Purchase of property and equipment
|
| | | | (8,217) | | | | | | (4,712) | | |
Cash paid for acquisitions, net of acquired cash
|
| | | | (95,744) | | | | | | — | | |
Other
|
| | | | (95) | | | | | | 178 | | |
Net cash (used in)/provided by investing activities
|
| | | | (75,323) | | | | | | 34,262 | | |
FINANCING ACTIVITIES: | | | | | | | | | | | | | |
Borrowings on term loan
|
| | | | 349,100 | | | | | | 197,325 | | |
Payment of debt issuance costs
|
| | | | (938) | | | | | | — | | |
Principal payments on debt
|
| | | | (556) | | | | | | (6,563) | | |
Contingent consideration paid for acquisition
|
| | | | — | | | | | | (15,000) | | |
Dividends paid
|
| | | | — | | | | | | (327,745) | | |
Surrender of Class A common stock for tax purposes
|
| | | | (3,340) | | | | | | (20,161) | | |
Proceeds from exercise of stock options
|
| | | | 4,370 | | | | | | 1,435 | | |
Payments for Tender Offer
|
| | | | (44,463) | | | | | | — | | |
Payments for Investor Repurchase
|
| | | | (350,000) | | | | | | — | | |
Net cash used in financing activities
|
| | | | (45,827) | | | | | | (170,709) | | |
Effect of exchange rate changes on cash and cash equivalents
|
| | | | (171) | | | | | | 659 | | |
Net increase/(decrease) in cash and cash equivalents
|
| | | | (18,988) | | | | | | 14,242 | | |
Cash and cash equivalents at the beginning of the period
|
| | | | 62,637 | | | | | | 43,649 | | |
Cash and cash equivalents at the end of the period
|
| | | $ | 43,649 | | | | | $ | 57,891 | | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW | | | | | | | | | | | | | |
Cash paid during the year for interest
|
| | | $ | 603 | | | | | $ | 9,429 | | |
Cash paid during the year for taxes
|
| | | $ | 13,265 | | | | | $ | 6,580 | | |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCE ACTIVITIES
|
| | | | | | | | | | | | |
Purchases of property and equipment included in accounts payable
|
| | | $ | 293 | | | | | $ | 104 | | |
Dividends declared included in accrued liabilities
|
| | | $ | — | | | | | $ | 367 | | |
Capitalized stock-based compensation
|
| | | $ | 346 | | | | | $ | 163 | | |
Payment withheld on acquisition
|
| | | $ | 14,376 | | | | | $ | — | | |
| | |
Year Ended December 31, 2019
|
| |||||||||||||||
| | |
Presence
|
| |
Commerce
|
| |
Total
|
| |||||||||
Subscription revenue | | | | | | | | | | | | | | | | | | | |
Transferred over time
|
| | | $ | 395,721 | | | | | $ | 64,388 | | | | | $ | 460,109 | | |
Transferred at a point in time
|
| | | | 7,347 | | | | | | — | | | | | | 7,347 | | |
Non-subscription revenue | | | | | | | | | | | | | | | | | | | |
Transferred over time
|
| | | | 609 | | | | | | 19 | | | | | | 628 | | |
Transferred at a point in time
|
| | | | 479 | | | | | | 16,188 | | | | | | 16,667 | | |
Total revenue
|
| | | $ | 404,156 | | | | | $ | 80,595 | | | | | $ | 484,751 | | |
| | |
Year Ended December 31, 2020
|
| |||||||||||||||
| | |
Presence
|
| |
Commerce
|
| |
Total
|
| |||||||||
Subscription revenue | | | | | | | | | | | | | | | | | | | |
Transferred over time
|
| | | $ | 466,321 | | | | | $ | 110,988 | | | | | $ | 577,309 | | |
Transferred at a point in time
|
| | | | 8,700 | | | | | | — | | | | | | 8,700 | | |
Non-subscription revenue | | | | | | | | | | | | | | | | | | | |
Transferred over time
|
| | | | 1,430 | | | | | | 208 | | | | | | 1,638 | | |
Transferred at a point in time
|
| | | | 1,380 | | | | | | 32,122 | | | | | | 33,502 | | |
Total revenue
|
| | | $ | 477,831 | | | | | $ | 143,318 | | | | | $ | 621,149 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2020
|
| ||||||
United States
|
| | | $ | 343,051 | | | | | $ | 430,118 | | |
International
|
| | | | 141,700 | | | | | | 191,031 | | |
Total revenue
|
| | | $ | 484,751 | | | | | $ | 621,149 | | |
| | |
December 31, 2019
|
| |
December 31, 2020
|
| ||||||
Prepaid referral fees, current
|
| | | $ | 1,370 | | | | | $ | 3,452 | | |
Prepaid referral fees, non-current
|
| | | | 2,189 | | | | | | 7,018 | | |
Prepaid app fees, current
|
| | | | 295 | | | | | | 1,016 | | |
Total capitalized contract costs
|
| | | $ | 3,854 | | | | | $ | 11,486 | | |
Identified Intangible Assets
|
| |
Useful Life
|
|
Technology
|
| |
5 years
|
|
Tradename
|
| |
3 years
|
|
Customer relationships
|
| |
3 years
|
|
Identified Intangible Assets
|
| |
Useful Life
|
|
Technology
|
| |
5 years
|
|
Tradename
|
| |
3 years
|
|
Customer relationships
|
| |
8 years
|
|
Identified Intangible Assets
|
| |
Useful Life
|
|
Technology
|
| |
5 years
|
|
Tradename
|
| |
3 years
|
|
Customer relationships
|
| |
2 years
|
|
| | |
Acuity
|
| |
Videolicious
|
| |
Unfold
|
| |
Total
|
| ||||||||||||
Net tangible assets (liabilities) acquired
|
| | | $ | (349) | | | | | $ | (1,546) | | | | | $ | (138) | | | | | $ | (2,033) | | |
Technology
|
| | | | 12,700 | | | | | | 1,200 | | | | | | 633 | | | | | | 14,533 | | |
Customer relationships
|
| | | | 3,700 | | | | | | 4,300 | | | | | | 830 | | | | | | 8,830 | | |
| | |
Acuity
|
| |
Videolicious
|
| |
Unfold
|
| |
Total
|
| ||||||||||||
Tradename
|
| | | | 1,100 | | | | | | 210 | | | | | | 5,186 | | | | | | 6,496 | | |
Net assets acquired
|
| | | $ | 17,151 | | | | | $ | 4,164 | | | | | $ | 6,511 | | | | | $ | 27,826 | | |
Consideration
|
| | | | 49,311 | | | | | | 11,670 | | | | | | 50,016 | | | | | | 110,997 | | |
Goodwill
|
| | | $ | 32,160 | | | | | $ | 7,506 | | | | | $ | 43,505 | | | | | $ | 83,171 | | |
|
| | |
Year Ended
December 31, 2019 |
| |||
Consideration transferred
|
| | | $ | 110,997 | | |
Less: Acquisition Liability
|
| | | | (14,376) | | |
Less: Cash acquired
|
| | | | (877) | | |
Cash paid for acquisitions, net of acquired cash
|
| | | $ | 95,744 | | |
| | |
December 31, 2019
|
| | |||||||||||||||||||||||
| | |
Amortized
Cost |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Aggregate
Fair Value |
| | ||||||||||||||
Corporate bonds and commercial paper
|
| | | $ | 38,696 | | | | | $ | 67 | | | | | $ | — | | | | | $ | 38,763 | | | | ||
Asset backed securities
|
| | | | 20,924 | | | | | | 25 | | | | | | (4) | | | | | | 20,945 | | | | ||
U.S. treasuries
|
| | | | 17,059 | | | | | | 18 | | | | | | (1) | | | | | | 17,076 | | | | | |
Total investment in marketable securities
|
| | | $ | 76,679 | | | | | $ | 110 | | | | | $ | (5) | | | | | $ | 76,784 | | | |
| | |
December 31, 2020
|
| |||||||||||||||||||||
| | |
Amortized
Cost |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Aggregate
Fair Value |
| ||||||||||||
Corporate bonds and commercial paper
|
| | | $ | 21,438 | | | | | $ | 55 | | | | | $ | — | | | | | $ | 21,493 | | |
Asset backed securities
|
| | | | 7,820 | | | | | | 94 | | | | | | — | | | | | | 7,914 | | |
U.S. treasuries
|
| | | | 8,053 | | | | | | 2 | | | | | | — | | | | | | 8,055 | | |
Total investment in marketable securities
|
| | | $ | 37,311 | | | | | $ | 151 | | | | | $ | — | | | | | $ | 37,462 | | |
| | |
December 31, 2019
|
| |||||||||||||||||||||||||||||||||
| | |
Less than 12 Months
|
| |
12 Months or Greater
|
| |
Total
|
| |||||||||||||||||||||||||||
| | |
Fair Value
|
| |
Gross
Unrealized Losses |
| |
Fair Value
|
| |
Gross
Unrealized Losses |
| |
Fair Value
|
| |
Gross
Unrealized Losses |
| ||||||||||||||||||
Asset backed securities
|
| | | $ | 3,017 | | | | | $ | (4) | | | | | $ | — | | | | | $ | — | | | | | $ | 3,017 | | | | | $ | (4) | | |
U.S. treasuries
|
| | | | 4,009 | | | | | | (1) | | | | | | — | | | | | | — | | | | | | 4,009 | | | | | | (1) | | |
Total
|
| | | $ | 7,026 | | | | | $ | (5) | | | | | $ | — | | | | | $ | — | | | | | $ | 7,026 | | | | | $ | (5) | | |
| | |
December 31, 2019
|
| |
December 31, 2020
|
| ||||||
Due within 1 year
|
| | | $ | 68,906 | | | | | $ | 32,607 | | |
Due in 1 year through 5 years
|
| | | | 7,878 | | | | | | 4,855 | | |
Total investment in marketable securities
|
| | | $ | 76,784 | | | | | $ | 37,462 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2020
|
| ||||||
Interest income
|
| | | $ | 1,919 | | | | | $ | 1,373 | | |
Accretion income/(expense)
|
| | | | 998 | | | | | | (278) | | |
Total investment income
|
| | | $ | 2,917 | | | | | $ | 1,095 | | |
| | |
December 31, 2019
|
| |||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Cash equivalents | | | | | | | | | | | | | | | | | | | | | | | | | |
Money market funds
|
| | | $ | 564 | | | | | $ | — | | | | | $ | — | | | | | $ | 564 | | |
Available-for-sale debt securities | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate bonds and commercial paper
|
| | | | — | | | | | | 38,763 | | | | | | — | | | | | | 38,763 | | |
| | |
December 31, 2019
|
| |||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Asset backed securities
|
| | | | — | | | | | | 20,945 | | | | | | — | | | | | | 20,945 | | |
U.S. treasuries
|
| | | | 17,076 | | | | | | — | | | | | | — | | | | | | 17,076 | | |
Total
|
| | | $ | 17,640 | | | | | $ | 59,708 | | | | | $ | — | | | | | $ | 77,348 | | |
|
| | |
December 31, 2020
|
| |||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Cash equivalents | | | | | | | | | | | | | | | | | | | | | | | | | |
Money market funds
|
| | | $ | 876 | | | | | $ | — | | | | | $ | — | | | | | $ | 876 | | |
Available-for-sale debt securities | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate bonds and commercial paper
|
| | | | — | | | | | | 21,493 | | | | | | — | | | | | | 21,493 | | |
Asset backed securities
|
| | | | — | | | | | | 7,914 | | | | | | — | | | | | | 7,914 | | |
U.S. treasuries
|
| | | | 8,055 | | | | | | — | | | | | | — | | | | | | 8,055 | | |
Total
|
| | | $ | 8,931 | | | | | $ | 29,407 | | | | | $ | — | | | | | $ | 38,338 | | |
| | |
December 31, 2019
|
| |
December 31, 2020
|
| ||||||
Prepaid advertising
|
| | | $ | 18,565 | | | | | $ | 9,645 | | |
Prepaid income tax
|
| | | | 7,152 | | | | | | 16,924 | | |
Prepaid operational expenses
|
| | | | 4,870 | | | | | | 5,152 | | |
Other current assets
|
| | | | 6,158 | | | | | | 5,663 | | |
Total prepaid expenses and other current assets
|
| | | $ | 36,745 | | | | | $ | 37,384 | | |
| | |
Estimated Useful Life (Years)
|
| |
December 31, 2019
|
| |
December 31, 2020
|
| ||||||
Computer hardware
|
| |
3
|
| | | $ | 24,803 | | | | | $ | 27,088 | | |
Furniture and fixtures
|
| |
7
|
| | | | 4,515 | | | | | | 4,675 | | |
Leasehold improvements
|
| |
Shorter of estimated useful
life or remaining term of lease |
| | | | 65,660 | | | | | | 66,380 | | |
| | |
Estimated Useful Life (Years)
|
| |
December 31, 2019
|
| |
December 31, 2020
|
| | ||||||||
Capitalized software development
costs |
| |
3
|
| | | | 10,857 | | | | | | 11,228 | | | | ||
Total property and equipment
|
| | | | | | | 105,835 | | | | | | 109,371 | | | | ||
Less: accumulated depreciation and
amortization |
| | | | | | | (45,698) | | | | | | (60,122) | | | | | |
Total property and equipment, net
|
| | | | | | $ | 60,137 | | | | | $ | 49,249 | | | | ||
|
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2020
|
| ||||||
Cost of revenue
|
| | | $ | 7,681 | | | | | $ | 7,298 | | |
Research and product development
|
| | | | 3,847 | | | | | | 4,034 | | |
Marketing and sales
|
| | | | 1,241 | | | | | | 1,384 | | |
General and administrative
|
| | | | 1,866 | | | | | | 1,600 | | |
Total depreciation and amortization expense
|
| | | $ | 14,635 | | | | | $ | 14,316 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2020
|
| ||||||
Cost of revenue
|
| | | $ | 1,161 | | | | | $ | 2,469 | | |
General and administrative expenses
|
| | | | 342 | | | | | | 288 | | |
Total amortization of capitalized software development costs
|
| | | $ | 1,503 | | | | | $ | 2,757 | | |
| | |
Useful
Lives (in years) |
| |
December 31, 2019
|
| | |||||||||||||||||
| | |
Gross Carrying
Value |
| |
Accumulated
Amortization |
| |
Net Carrying
Value |
| | ||||||||||||||
Technology
|
| |
5
|
| | | $ | 14,533 | | | | | $ | (1,905) | | | | | $ | 12,628 | | | | ||
Customer relationships
|
| |
2 to 8
|
| | | | 8,830 | | | | | | (1,116) | | | | | | 7,714 | | | | ||
Tradenames
|
| |
3
|
| | | | 6,496 | | | | | | (653) | | | | | | 5,843 | | | | ||
Total intangible assets, net
|
| | | | | | $ | 29,859 | | | | | $ | (3,674) | | | | | $ | 26,185 | | | | | |
| | |
Useful
Lives (in years) |
| |
December 31, 2020
|
| | |||||||||||||||||
| | |
Gross Carrying
Value |
| |
Accumulated
Amortization |
| |
Net Carrying
Value |
| | ||||||||||||||
Technology
|
| |
5
|
| | | $ | 14,533 | | | | | $ | (4,818) | | | | | $ | 9,715 | | | | ||
Customer relationships
|
| |
2 to 8
|
| | | | 8,830 | | | | | | (3,348) | | | | | | 5,482 | | | | ||
Tradenames
|
| |
3
|
| | | | 6,496 | | | | | | (2,825) | | | | | | 3,671 | | | | ||
Total intangible assets, net
|
| | | | | | $ | 29,859 | | | | | $ | (10,991) | | | | | $ | 18,868 | | | | | |
| | |
Year Ended December 31, 2020
|
| |||||||||
| | |
2019
|
| |
2020
|
| ||||||
Cost of revenue
|
| | | $ | 1,905 | | | | | $ | 2,915 | | |
Marketing and sales
|
| | | | — | | | | | | 2,232 | | |
General and administrative
|
| | | | 1,769 | | | | | | 2,240 | | |
Total amortization of finite-lived intangible assets
|
| | | $ | 3,674 | | | | | $ | 7,387 | | |
Year Ending December 31,
|
| |
Amount
|
| |||
2021
|
| | | $ | 7,168 | | |
2022
|
| | | | 5,311 | | |
2023
|
| | | | 3,444 | | |
2024
|
| | | | 1,533 | | |
2025
|
| | | | 538 | | |
Thereafter
|
| | | | 874 | | |
Total
|
| | | $ | 18,868 | | |
| | |
December 31, 2019
|
| |
December 31, 2020
|
| ||||||
Accrued marketing expenses
|
| | | $ | 14,042 | | | | | $ | 26,459 | | |
Accrued indirect taxes
|
| | | | 11,239 | | | | | | 13,463 | | |
Accrued Acquisition Liability
|
| | | | 14,812 | | | | | | — | | |
Other accrued expenses
|
| | | | 6,299 | | | | | | 6,857 | | |
Total accrued liabilities
|
| | | $ | 46,392 | | | | | $ | 46,779 | | |
| | |
December 31, 2019
|
| |
December 31, 2020
|
| ||||||
Term Loan
|
| | | $ | 350,000 | | | | | $ | 543,437 | | |
Less: unamortized original issue discount
|
| | | | (892) | | | | | | (3,356) | | |
Less: unamortized deferred financing costs
|
| | | | (929) | | | | | | (743) | | |
Less: debt, current
|
| | | $ | (8,750) | | | | | $ | (13,586) | | |
Total debt, non-current
|
| | | $ | 339,429 | | | | | $ | 525,752 | | |
Year Ending December 31,
|
| |
Amount
|
| |||
2021
|
| | | $ | 13,586 | | |
2022
|
| | | | 13,586 | | |
2023
|
| | | | 40,758 | | |
2024
|
| | | | 40,758 | | |
2025
|
| | | | 434,749 | | |
Total
|
| | | $ | 543,437 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2020
|
| ||||||
U.S.
|
| | | $ | 55,896 | | | | | $ | 16,672 | | |
Foreign
|
| | | | 8,179 | | | | | | 5,827 | | |
Income before (provision for)/benefit from income taxes
|
| | | $ | 64,075 | | | | | $ | 22,499 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2020
|
| ||||||
Current: | | | | | | | | | | | | | |
Federal
|
| | | $ | (7,663) | | | | | $ | 5,421 | | |
State
|
| | | | (975) | | | | | | (660) | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2020
|
| ||||||
Foreign
|
| | | | (1,303) | | | | | | (1,524) | | |
Total current
|
| | | | (9,941) | | | | | | 3,237 | | |
Deferred: | | | | | | | | | | | | | |
Federal
|
| | | | 3,243 | | | | | | 4,340 | | |
State
|
| | | | 646 | | | | | | (151) | | |
Foreign
|
| | | | 129 | | | | | | 663 | | |
Total deferred
|
| | | | 4,018 | | | | | | 4,852 | | |
(Provision for)/benefit from income taxes
|
| | | $ | (5,923) | | | | | $ | 8,089 | | |
|
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2020
|
| ||||||
Expected provision for income tax at federal statutory tax rate (21%)
|
| | | $ | (13,454) | | | | | $ | (4,725) | | |
Effect of: | | | | | | | | | | | | | |
State and local income taxes, net of federal benefit
|
| | | | (651) | | | | | | (230) | | |
Nondeductible expenses
|
| | | | (791) | | | | | | (283) | | |
Stock-based compensation
|
| | | | 7,722 | | | | | | 5,192 | | |
Effect of foreign operations
|
| | | | 477 | | | | | | 231 | | |
Foreign-derived intangible income deduction
|
| | | | 610 | | | | | | 236 | | |
Research and development credits, net
|
| | | | — | | | | | | 10,644 | | |
Nondeductible compensation
|
| | | | — | | | | | | (2,498) | | |
Other adjustments
|
| | | | 164 | | | | | | (478) | | |
(Provision for)/benefit from income taxes
|
| | | $ | (5,923) | | | | | $ | 8,089 | | |
| | |
December 31, 2019
|
| |
December 31, 2020
|
| ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Accrued expenses
|
| | | $ | 1,206 | | | | | $ | 1,020 | | |
Deferred lease incentives
|
| | | | 2,341 | | | | | | 2,085 | | |
Deferred rent
|
| | | | 3,614 | | | | | | 3,944 | | |
Unrealized foreign currency gain
|
| | | | — | | | | | | 1,345 | | |
Research and development tax credits
|
| | | | — | | | | | | 3,523 | | |
Net operating loss carryforwards
|
| | | | 4,532 | | | | | | 4,243 | | |
Total deferred tax assets
|
| | | | 11,693 | | | | | | 16,160 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Deferred expenses
|
| | | | (925) | | | | | | (2,181) | | |
Software development costs
|
| | | | (2,171) | | | | | | (1,583) | | |
Depreciation and amortization
|
| | | | (3,065) | | | | | | (4,020) | | |
Stock-based compensation
|
| | | | (2,433) | | | | | | (602) | | |
Capital loss carryforward
|
| | | | — | | | | | | (1) | | |
Other
|
| | | | (203) | | | | | | — | | |
Total deferred tax liabilities
|
| | | | (8,797) | | | | | | (8,387) | | |
Net deferred tax asset
|
| | | $ | 2,896 | | | | | $ | 7,773 | | |
| | |
Year Ended
December 31, 2020 |
| |||
Balance at beginning of year
|
| | | $ | — | | |
Additions based on tax positions taken during a prior period
|
| | | | 4,085 | | |
| | |
Year Ended
December 31, 2020 |
| |||
Additions based on tax positions taken during the current period
|
| | | | 1,217 | | |
Balance at end of year
|
| | | $ | 5,302 | | |
|
Location
|
| |
Primary Purpose
|
| |
Lease Expires
|
|
Varick Street, New York, New York | | |
Headquarters, Office
|
| |
October 2030
|
|
Portland, Oregon | | | Office | | |
January 2031
|
|
Los Angeles, California | | | Office | | |
January 2023
|
|
Dublin, Ireland | | | Office | | |
March 2030
|
|
Broadway, New York, New York | | | Office(1) | | |
June 2020
|
|
| | |
Operating Lease Payments
|
| |||
Years Ending: | | | | | | | |
2021
|
| | | $ | 13,890 | | |
2022
|
| | | | 14,192 | | |
2023
|
| | | | 14,054 | | |
2024
|
| | | | 14,557 | | |
2025
|
| | | | 13,965 | | |
Thereafter
|
| | | | 72,648 | | |
Total
|
| | | $ | 143,306 | | |
| | |
Authorized and
Originally Issued Shares |
| |
December 31, 2019
|
| ||||||||||||
| | |
Outstanding Shares
|
| |
Net Carrying Value
|
| ||||||||||||
A-1 Preferred Stock
|
| | | | 57,999,960 | | | | | | 54,431,446 | | | | | $ | 6 | | |
A-2 Preferred Stock
|
| | | | 47,483,380 | | | | | | 39,134,868 | | | | | | 62,368 | | |
B Preferred Stock
|
| | | | 12,634,398 | | | | | | 10,880,018 | | | | | | 64,172 | | |
Total
|
| | | | 118,117,738 | | | | | | 104,446,332 | | | | | $ | 126,546 | | |
| | |
Authorized and
Originally Issued Shares |
| |
December 31, 2020
|
| ||||||||||||
| | |
Outstanding Shares
|
| |
Net Carrying Value
|
| ||||||||||||
A-1 Preferred Stock
|
| | | | 57,999,960 | | | | | | 54,431,446 | | | | | $ | 6 | | |
A-2 Preferred Stock
|
| | | | 47,483,380 | | | | | | 39,134,868 | | | | | | 63,283 | | |
B Preferred Stock
|
| | | | 12,634,398 | | | | | | 10,880,018 | | | | | | 68,101 | | |
Total
|
| | | | 118,117,738 | | | | | | 104,446,332 | | | | | $ | 131,390 | | |
| | |
As of December 31, 2019 and 2020
|
| |||||||||
| | |
Liquidation
Preferences |
| |
Issuance
Price/Liquidation Preference Per Share |
| ||||||
Series A-2
|
| | | $ | 31,699 | | | | | $ | 0.81 | | |
Series B
|
| | | | 34,490 | | | | | | 3.17 | | |
Total
|
| | | $ | 66,189 | | | | | | | | |
| | |
Redemption Value
|
| |||
Series A-2
|
| | | $ | 63,462 | | |
Series B
|
| | | | 68,891 | | |
Total redemption value
|
| | | $ | 132,353 | | |
| | |
December 31, 2019
|
| |||
Shares reserved for redeemable convertible preferred stock outstanding
|
| | | | 104,446,332 | | |
Options issued and outstanding
|
| | | | 6,602,149 | | |
RSUs
|
| | | | 5,723,783 | | |
Executive restricted stock
|
| | | | 4,460,858 | | |
Shares available for future grants
|
| | | | 1,787,435 | | |
Total
|
| | | | 123,020,557 | | |
| | |
December 31, 2020
|
| |||
Shares reserved for redeemable convertible preferred stock outstanding
|
| | | | 104,446,332 | | |
Options issued and outstanding
|
| | | | 5,228,413 | | |
RSUs
|
| | | | 5,441,475 | | |
Executive restricted stock
|
| | | | 4,460,858 | | |
Shares available for future grants
|
| | | | 8,727,557 | | |
Total
|
| | | | 128,304,635 | | |
| | |
December 31,
2018 |
| |
Additions
|
| |
Reclassifications
|
| |
Provision for
income taxes |
| |
December 31,
2019 |
| |||||||||||||||
Foreign currency translation loss
|
| | | $ | (101) | | | | | | (86) | | | | | | — | | | | | | — | | | | | $ | (187) | | |
Unrealized gains/(losses) on marketable securities
|
| | | | (55) | | | | | | 148 | | | | | | 30 | | | | | | (44) | | | | | | 79 | | |
Accumulated other comprehensive income/(loss)
|
| | | $ | (156) | | | | | | 62 | | | | | | 30 | | | | | | (44) | | | | | $ | (108) | | |
| | |
December 31,
2019 |
| |
Additions
|
| |
Reclassifications
|
| |
Provision for
income taxes |
| |
December 31,
2020 |
| |||||||||||||||
Foreign currency translation loss
|
| | | $ | (187) | | | | | | 2,528 | | | | | | — | | | | | | — | | | | | $ | 2,341 | | |
Unrealized gains/(losses) on marketable securities
|
| | | | 79 | | | | | | 41 | | | | | | 5 | | | | | | (11) | | | | | | 114 | | |
Accumulated other comprehensive income/(loss)
|
| | | $ | (108) | | | | | | 2,569 | | | | | | 5 | | | | | | (11) | | | | | $ | 2,455 | | |
| | |
Number of
Options |
| |
Weighted-
Average Exercise Price |
| |
Weighted-
Average Remaining Life (years) |
| |
Aggregate
Intrinsic Value |
| ||||||||||||
As of December 31, 2018
|
| | | | 9,334,493 | | | | | $ | 2.08 | | | | | | 5.46 | | | | | $ | 115,122 | | |
Options granted
|
| | | | — | | | | | | — | | | | | | | | | | | | | | |
Options exercised
|
| | | | (2,481,266) | | | | | | 1.61 | | | | | | | | | | | | | | |
Options forfeited and cancelled
|
| | | | (251,078) | | | | | | 4.15 | | | | | | | | | | | | | | |
As of December 31, 2019
|
| | | | 6,602,149 | | | | | $ | 2.18 | | | | | | 4.69 | | | | | $ | 147,482 | | |
Options granted
|
| | | | — | | | | | | — | | | | | | | | | | | | | | |
Options exercised
|
| | | | (897,777) | | | | | | 1.60 | | | | | | | | | | | | | | |
Options forfeited and cancelled
|
| | | | (475,959) | | | | | | 6.05 | | | | | | | | | | | | | | |
As of December 31, 2020
|
| | | | 5,228,413 | | | | | $ | 1.93 | | | | | | 3.60 | | | | | | 246,101 | | |
Options vested at December 31, 2020
|
| | | | 5,138,861 | | | | | $ | 1.87 | | | | | | 3.55 | | | | | $ | 242,178 | | |
Options expected to vest at December 31, 2020
|
| | | | 89,552 | | | | | $ | 5.19 | | | | | | 0.48 | | | | | $ | 3,923 | | |
Exercisable at December 31, 2020
|
| | | | 5,138,861 | | | | | $ | 1.87 | | | | | | 3.55 | | | | | $ | 242,178 | | |
| | |
Number of RSUs
|
| |
Weighted Average
Grant Date Fair Value Per RSU |
| ||||||
RSUs outstanding – December 31, 2018
|
| | | | 2,012,399 | | | | | $ | 13.65 | | |
RSUs granted
|
| | | | 4,465,569 | | | | | | 17.55 | | |
RSUs vested
|
| | | | (385,735) | | | | | | 13.58 | | |
RSUs forfeited and cancelled
|
| | | | (368,450) | | | | | | 13.86 | | |
RSUs outstanding – December 31, 2019
|
| | | | 5,723,783 | | | | | $ | 16.70 | | |
RSUs granted
|
| | | | 1,585,618 | | | | | | 33.43 | | |
RSUs vested
|
| | | | (1,366,242) | | | | | | 16.16 | | |
RSUs forfeited and cancelled
|
| | | | (501,684) | | | | | | 16.79 | | |
RSUs outstanding – December 31, 2020
|
| | | | 5,441,475 | | | | | $ | 21.27 | | |
| | |
Shares
Available for Future Grant |
| |||
Balance at December 31, 2018
|
| | | | 5,448,697 | | |
Granted
|
| | | | (4,465,569) | | |
Forfeited and cancelled
|
| | | | 619,528 | | |
Reacquired to satisfy employee tax withholding obligations
|
| | | | 184,779 | | |
Balance as of December 31, 2019
|
| | | | 1,787,435 | | |
Additional Class A common shares available for issuance
|
| | | | 6,900,000 | | |
Granted
|
| | | | (1,585,618) | | |
Forfeited and expired
|
| | | | 977,643 | | |
Reacquired to satisfy employee tax withholding obligations
|
| | | | 648,097 | | |
Balance as of December 31, 2020
|
| | | | 8,727,557 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2020
|
| ||||||
Cost of revenue
|
| | | $ | 532 | | | | | $ | 780 | | |
Research and product development
|
| | | | 12,087 | | | | | | 21,619 | | |
Marketing and sales
|
| | | | 1,737 | | | | | | 3,144 | | |
General and administrative
|
| | | | 3,619 | | | | | | 5,711 | | |
Total stock-based compensation
|
| | | $ | 17,975 | | | | | $ | 31,254 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2020
|
| ||||||
Numerator: | | | | | | | | | | | | | |
Net income
|
| | | $ | 58,152 | | | | | $ | 30,588 | | |
Less: accretion of redeemable convertible preferred stock to redemption value
|
| | | | (5,340) | | | | | | (4,844) | | |
Less: deemed dividends upon redemption of redeemable convertible preferred stock
|
| | | | (311,610) | | | | | | — | | |
Less: declared dividends to preferred shareholders
|
| | | | — | | | | | | (278,454) | | |
Net loss attributable to Class A and Class B common stockholders, basic and diluted
|
| | | $ | (258,798) | | | | | $ | (252,710) | | |
Denominator: | | | | | | | | | | | | | |
Weighted-average shares used in computing net loss per share
attributable to Class A and Class B common stockholders, basic and diluted |
| | | | 17,354,458 | | | | | | 17,917,236 | | |
Net loss per share attributable to Class A and Class B common stockholders, basic and diluted
|
| | | $ | (14.91) | | | | | $ | (14.10) | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2020
|
| ||||||
Redeemable convertible preferred stock
|
| | | | 104,446,332 | | | | | | 104,446,332 | | |
Outstanding stock options
|
| | | | 6,602,149 | | | | | | 5,228,413 | | |
Restricted stock units
|
| | | | 5,723,783 | | | | | | 5,441,475 | | |
Executive restricted stock
|
| | | | 4,460,858 | | | | | | 4,460,858 | | |
Total
|
| | | | 121,233,122 | | | | | | 119,577,078 | | |
| | |
Tock
|
| |||
Net tangible assets (liabilities) assumed
|
| | | $ | (2,322) | | |
Customer relationships – restaurants
|
| | | | 64,000 | | |
Customer relationships – enterprise
|
| | | | 19,000 | | |
Tradename
|
| | | | 6,000 | | |
Developed technology
|
| | | | 4,000 | | |
Net assets acquired
|
| | | $ | 90,678 | | |
Consideration
|
| | | | 426,872 | | |
Goodwill
|
| | | $ | 336,194 | | |
| Assets | | | | | | | |
| Current Assets | | | | | | | |
|
Cash
|
| | | $ | 15,996,479 | | |
|
Restricted cash
|
| | | | 12,333,574 | | |
|
Accounts receivable, net
|
| | | | 109,342 | | |
|
Prepaid expenses and other current assets
|
| | | | 309,578 | | |
|
Deferred contract costs, current portion
|
| | | | 239,371 | | |
|
Due from vendors
|
| | | | 2,743,999 | | |
|
Total Current Assets
|
| | | | 31,732,343 | | |
|
Property, Equipment and Software, Net
|
| | | | 2,798,206 | | |
| Other Assets | | | | | | | |
|
Deferred contract costs, net of current portion
|
| | | | 365,427 | | |
|
Other assets
|
| | | | 111,701 | | |
|
Total Other Assets
|
| | | | 477,128 | | |
|
Total Assets
|
| | | $ | 35,007,677 | | |
| Liabilities and Stockholders’ Equity | | | |||||
|
Current Liabilities
Accounts payable |
| | | $ | 1,561,501 | | |
|
Accrued expenses
|
| | | | 1,628,887 | | |
|
Deferred revenue
|
| | | | 20,695 | | |
|
Funds payable and amounts due to customers
|
| | | | 15,077,573 | | |
|
Total Current Liabilities
|
| | | | 18,288,656 | | |
|
Other Liabilities
|
| | | | 247,964 | | |
|
Total Liabilities
|
| | | | 18,536,620 | | |
| Stockholders’ Equity | | | | | | | |
|
Preferred stock, $.00001 par value 106,931,596 shares authorized; 106,931,596 shares issued and outstanding
|
| | | | 1,069 | | |
|
Common stock, $.00001 par value 303,496,542 shares authorized; 121,392,684 shares issued; 120,787,253 shares outstanding
|
| | | | 1,214 | | |
|
Additional paid-in capital
|
| | | | 31,141,171 | | |
|
Treasury stock, 605,431 shares, at par value
|
| | | | (6) | | |
|
Accumulated deficit
|
| | | | (14,672,391) | | |
|
Total Stockholders’ Equity
|
| | | | 16,471,057 | | |
|
Total Liabilities and Stockholders’ Equity
|
| | | $ | 35,007,677 | | |
|
Net Sales
|
| | | $ | 23,027,648 | | |
|
Cost of Sales
|
| | | | 9,863,508 | | |
| | | | | | 13,164,140 | | |
|
Operating Expenses
Sales and marketing expenses |
| | | | 4,948,987 | | |
|
General and administrative expenses
|
| | | | 9,026,016 | | |
|
Total Operating Expenses
|
| | | | 13,975,003 | | |
|
Other Income (Expense)
Foreign currency transaction losses |
| | | | (1,738) | | |
|
Interest income
|
| | | | 5,886 | | |
|
Other income
|
| | | | 7,126 | | |
|
Total Other Income
|
| | | | 11,274 | | |
|
Net Loss
|
| | | $ | (799,589) | | |
| | |
Preferred Stock
|
| | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Series A-3
|
| |
Series A
|
| |
Series A-2
|
| |
Series Seed
|
| |
Common Stock
|
| |
Additional
Paid in Capital |
| |
Treasury Stock
|
| |
Accumulated
Deficit |
| | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Total
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance — January 1, 2020
|
| | | | — | | | | | $ | — | | | | | | 20,616,548 | | | | | $ | 206 | | | | | | 40,893,799 | | | | | $ | 409 | | | | | | 13,888,889 | | | | | $ | 139 | | | | | | 119,268,939 | | | | | $ | 1,193 | | | | | $ | 20,634,480 | | | | | | (605,431) | | | | | $ | (6) | | | | | $ | (13,872,802) | | | | | $ | 6,763,619 | | |
Exercise of options
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,123,745 | | | | | | 21 | | | | | | 509,677 | | | | | | — | | | | | | — | | | | | | — | | | | | | 509,698 | | |
Issuance of Series A-3 preferred stock
|
| | | | 31,532,360 | | | | | | 315 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 9,999,682 | | | | | | — | | | | | | — | | | | | | — | | | | | | 9,999,997 | | |
Stock issuance costs (Series A-3)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (130,000) | | | | | | — | | | | | | — | | | | | | | | | | | | (130,000) | | |
Stock based compensation expense
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 127,332 | | | | | | — | | | | | | — | | | | | | — | | | | | | 127,332 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (799,589) | | | | | | (799,589) | | |
Balance — December 31, 2020
|
| | | | 31,532,360 | | | | | $ | 315 | | | | | | 20,616,548 | | | | | $ | 206 | | | | | | 40,893,799 | | | | | $ | 409 | | | | | | 13,888,889 | | | | | $ | 139 | | | | | | 121,392,684 | | | | | $ | 1,214 | | | | | $ | 31,141,171 | | | | | | (605,431) | | | | | $ | (6) | | | | | $ | (14,672,391) | | | | | $ | 16,471,057 | | |
| Cash Flows From Operating Activities | | | | | | | |
|
Net loss
|
| | | $ | (799,589) | | |
|
Adjustments to reconcile net loss to net cash provided by operating activities:
|
| | | | | | |
|
Depreciation and amortization
|
| | | | 1,465,947 | | |
|
Amortization of contract costs
|
| | | | 113,313 | | |
|
Stock based compensation
|
| | | | 127,332 | | |
|
Bad debt expense
|
| | | | 16,248 | | |
|
Changes in operating assets and liabilities:
|
| | | | | | |
|
Accounts receivable
|
| | | | 417,508 | | |
|
Prepaid expenses
|
| | | | 35,295 | | |
|
Due from vendors
|
| | | | (1,010,205) | | |
|
Other assets
|
| | | | (703,234) | | |
|
Accounts payable
|
| | | | 1,305,745 | | |
|
Accrued expenses
|
| | | | 830,424 | | |
|
Deferred revenue
|
| | | | (325,543) | | |
|
Funds payable and amounts due to customers
|
| | | | 10,064,770 | | |
|
Other liabilities
|
| | | | 233,564 | | |
|
Total Adjustments
|
| | | | 12,571,164 | | |
|
Net Cash Provided by Operating Activities
|
| | | | 11,771,575 | | |
|
Cash Flows Used in Investing Activities
Purchases of property, equipment and software |
| | | | (2,111,131) | | |
| Cash Flows From Financing Activities | | | | | | | |
|
Proceeds from issuance of Series A-3 preferred stock
|
| | | | 9,999,997 | | |
|
Payments for stock issuance costs (Series A-3)
|
| | | | (130,000) | | |
|
Proceeds from exercise of stock options
|
| | | | 509,698 | | |
|
Net Cash Provided by Financing Activities
|
| | | | 10,379,695 | | |
|
Net Increase in Cash and Restricted Cash
|
| | | | 20,040,139 | | |
|
Cash and Restricted Cash − Beginning
|
| | | | 8,289,914 | | |
|
Cash and Restricted Cash − Ending
|
| | | $ | 28,330,053 | | |
| Reconciliation of cash and restricted cash reported in the balance sheet: | | | | | | | |
|
Cash
|
| | | $ | 15,996,479 | | |
|
Restricted Cash
|
| | | | 12,333,574 | | |
|
Total Cash and Restricted Cash
|
| | | $ | 28,330,053 | | |
| Cash Paid During the Year for: | | | | | | | |
|
Interest
|
| | | $ | 871 | | |
| | |
Years
|
|
Computer equipment and software
|
| |
3 – 5
|
|
Website and software development costs
|
| |
3
|
|
Furniture and fixtures
|
| |
7
|
|
Leasehold improvements
|
| |
Lesser of useful life or
remaining lease term |
|
Source:
|
| |
2020
|
| |
%
|
| ||||||
Subscription fee revenue
|
| | | $ | 3,401,989 | | | | | | 15% | | |
TPP payment-processing
|
| | | | 9,613,388 | | | | | | 42% | | |
Non-TPP payment-processing
|
| | | | 397,406 | | | | | | 2% | | |
Source:
|
| |
2020
|
| |
%
|
| ||||||
Engineering services revenue
|
| | | | 2,973,952 | | | | | | 13% | | |
Metered GMV fees
|
| | | | 5,020,047 | | | | | | 22% | | |
Other revenue
|
| | | | 1,620,866 | | | | | | 6% | | |
Total
|
| | | $ | 23,027,648 | | | | | | 100% | | |
|
| | |
2020
|
| |||
Computer equipment and software
|
| | | $ | 401,873 | | |
Website and software development costs
|
| | | | 6,316,649 | | |
Furniture and fixtures
|
| | | | 183,504 | | |
Leasehold improvements
|
| | | | 21,892 | | |
Total Cost
|
| | | | 6,923,918 | | |
Less: Accumulated depreciation and amortization
|
| | | | (4,125,712) | | |
Property, Equipment and Software, Net
|
| | | $ | 2,798,206 | | |
For the Years Ending December 31,
|
| |
Amount
|
| |||
2021
|
| | | $ | 1,292,119 | | |
2022
|
| | | | 888,960 | | |
2023
|
| | | | 324,474 | | |
Total
|
| | | $ | 2,505,553 | | |
| | |
2020
|
| |||
Restricted cash
|
| | | $ | 12,333,574 | | |
Due from vendors
|
| | | | 2,743,999 | | |
Total GMV Assets
|
| | | $ | 15,077,573 | | |
Funds payable and amounts due to customers
|
| | | $ | 15,077,573 | | |
Total GMV Liabilities
|
| | | $ | 15,077,573 | | |
| | |
2020
|
| |||
Due to restaurants and other businesses
|
| | | $ | 14,601,922 | | |
Gift card liability
|
| | | | 475,651 | | |
Total funds payable and amounts due to customer
|
| | | $ | 15,077,573 | | |
| | |
Options
Outstanding |
| |
Weighted-Average
Fair Value |
| ||||||
Outstanding at January 1, 2020
|
| | | | 40,466,067 | | | | | $ | 0.01 | | |
Granted
|
| | | | 6,986,000 | | | | | | 0.04 | | |
Exercised
|
| | | | (2,123,745) | | | | | | 0.01 | | |
Forfeited
|
| | | | (2,613,123) | | | | | | 0.02 | | |
Expired
|
| | | | (1,907,846) | | | | | | 0.01 | | |
Outstanding at December 31, 2020
|
| | | | 40,807,353 | | | | | $ | 0.02 | | |
For the Years Ending December 31,
|
| |
Amount
|
| |||
2021
|
| | | $ | 451,379 | | |
2022
|
| | | | 460,407 | | |
2023
|
| | | | 193,416 | | |
Total
|
| | | $ | 1,105,202 | | |
| | |
Amount
Paid or to Be Paid |
| |||
SEC registration fee
|
| | | $ | * | | |
Exchange listing fee
|
| | | | * | | |
Printing and engraving expenses
|
| | | | * | | |
Legal fees and expenses
|
| | | | * | | |
Accounting fees and expenses
|
| | | | * | | |
Custodian, transfer agent and registrar fees and expenses
|
| | | | * | | |
Other advisor fees
|
| | | | * | | |
Miscellaneous expenses
|
| | | | * | | |
Total
|
| | | $ | * | | |
Exhibit No.
|
| | | |
2.1 | | | | |
3.1 | | | | |
3.2 | | | | |
3.3 | | | | |
3.4 | | | | |
4.1 | | | | |
5.1* | | | Opinion of Skadden, Arps, Slate, Meagher & Flom LLP. | |
10.1 | | | | |
10.2 | | | | |
10.3† | | | | |
10.4† | | | | |
10.5† | | | Form of Restricted Stock Unit Award Agreement pursuant to the Squarespace, Inc. 2021 Equity Incentive Plan. | |
10.6† | | | Form of Stock Option Award Agreement pursuant to the Squarespace, Inc. 2021 Equity Incentive Plan. | |
10.7† | | | | |
10.8† | | | | |
10.9† | | | | |
10.10† | | | | |
10.11† | | | | |
10.12† | | | | |
10.13† | | | | |
10.14† | | | Employment Agreement between Squarespace, Inc. and Anthony Casalena, dated April 15, 2021. | |
10.15† | | | Performance Restricted Stock Unit Agreement between Squarespace, Inc. and Anthony Casalena, dated April 15, 2021. | |
10.16 | | | | |
10.17 | | | | |
10.18 | | | | |
10.19 | | | | |
10.20 | | | |
Exhibit No.
|
| | | |
10.21 | | | | |
21.1 | | | | |
23.1* | | | Consent of Skadden, Arps, Slate, Meagher & Flom LLP (included in Exhibit 5.1). | |
23.2 | | | | |
23.3 | | | | |
24.1 | | | |
| | | | Squarespace, Inc. | | |||
| | | | By: | | |
/s/ Anthony Casalena
Anthony Casalena
Chief Executive Officer |
|
|
Signature
|
| |
Title
|
| |
Date
|
|
|
/s/ Anthony Casalena
Anthony Casalena
|
| |
Chief Executive Officer and Director
(Principal Executive Officer) |
| |
April 16, 2021
|
|
|
/s/ Marcela Martin
Marcela Martin
|
| |
Chief Financial Officer
(Principal Financial Officer and Principal Accounting Officer) |
| |
April 16, 2021
|
|
|
/s/ Andrew Braccia
Andrew Braccia
|
| |
Director
|
| |
April 16, 2021
|
|
|
/s/ Michael Fleisher
Michael Fleisher
|
| |
Director
|
| |
April 16, 2021
|
|
|
/s/ Liza Landsman
Liza Landsman
|
| |
Director
|
| |
April 16, 2021
|
|
|
/s/ Anton Levy
Anton Levy
|
| |
Director
|
| |
April 16, 2021
|
|
|
/s/ Jonathan Klein
Jonathan Klein
|
| |
Director
|
| |
April 16, 2021
|
|