The following tables set forth our selected consolidated financial data for the periods indicated. We have derived the selected consolidated statements of operations data for 2015, 2016, and 2017 and the selected consolidated balance sheet data as of December 31, 2016 and 2017 from our audited consolidated financial statements included elsewhere in this Annual Report on Form 10-K. The selected consolidated statements of operations data for 2014 and the selected consolidated balance sheet data as of December 31, 2014 and 2015 were derived from our audited consolidated financial statements that are not included in this Annual Report on Form 10-K.
The following selected consolidated financial data should be read in conjunction with “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and the related notes appearing in “Item 8. Financial Statements and Supplementary Data” in this Annual Report on Form 10-K. Our historical results are not necessarily indicative of our future results.
Year Ended December 31,
2014
2015
2016
2017
(in thousands, except per share data)
Consolidated Statements of Operations Data:
Revenue
$
44,548
$
113,836
$
202,926
$
308,217
Operating expenses (1):
Platform operations
12,559
22,967
39,876
66,230
Sales and marketing
14,590
26,794
46,056
61,379
Technology and development
7,250
12,819
27,313
52,806
General and administrative
9,385
13,276
32,163
58,446
Total operating expenses
43,784
75,856
145,408
238,861
Income from operations
764
37,980
57,518
69,356
Total other expense, net
1,707
8,125
13,684
5,731
Income (loss) before income taxes
(943
)
29,855
43,834
63,625
Provision for (benefit from) income taxes
(948
)
13,926
23,352
12,827
Net income
$
5
$
15,929
$
20,482
$
50,798
Net income (loss) attributable to common stockholders (2)
$
—
$
8,764
$
(26,727
)
$
50,798
Net income (loss) per share attributable to common stockholders–basic (2)
$
—
$
0.85
$
(1.46
)
$
1.26
Net income (loss) per share attributable to common stockholders–diluted (2)
$
—
$
0.39
$
(1.46
)
$
1.15
Year Ended December 31,
2014
2015
2016
2017
(in thousands)
Non-GAAP Financial and Operating Data:
Gross spend (3)
$
211,266
$
552,325
$
1,027,984
$
1,555,856
Gross billings (4)
$
201,804
$
529,975
$
990,561
$
1,491,742
As of December 31,
2014
2015
2016
2017
(in thousands)
Consolidated Balance Sheet Data:
Cash and cash equivalents
$
17,315
$
4,047
$
133,400
$
155,950
Accounts receivable, net
78,364
191,943
377,240
599,565
Total assets
102,238
210,231
537,596
797,164
Accounts payable
58,293
108,461
321,163
490,377
Long-term debt, net of current portion
16,493
45,918
25,847
27,000
(5)
Total liabilities
80,372
171,885
373,216
551,581
Convertible preferred stock
27,997
24,204
—
—
Total stockholders’ equity (deficit)
(6,131
)
14,142
164,380
245,583
(1)
Includes stock-based compensation expense as follows:
Year Ended December 31,
2014
2015
2016
2017
(in thousands)
Platform operations
$
14
$
71
$
756
$
2,674
Sales and marketing
50
127
1,707
6,261
Technology and development
909
85
1,513
6,661
General and administrative
3,572
91
1,080
5,721
Total
$
4,545
$
374
$
5,056
$
21,317
See Note 10 to our audited consolidated financial statements for more information regarding stock-based compensation expense.
(2)
See Note 3 to our audited consolidated financial statements for a description of the net income (loss) attributable to common stockholders and net income (loss) per share attributable to common stockholders—basic and diluted computations.
(3)
Gross spend includes the value of a client’s purchases through our platform plus our platform fee, which is a percentage of a client’s purchases through the platform. We review gross spend for internal management purposes to assess market share and scale, and to plan for optimal levels of support for our clients. Some companies in our industry report revenue on a gross basis or use similar metrics, so tracking our gross spend allows us to compare our results to the results of those companies. Gross spend does not represent our revenue reported on a GAAP basis. Our gross spend is influenced by the volume and characteristics of bids for advertising inventory won through our platform. We expect our revenue as a percentage of gross spend, which is sometimes referred to as take rate, to fluctuate due to the types of services and features selected by our clients through our platform and certain volume discounts. We track gross spend based on the location of our office servicing the respective clients. Other companies, including companies in our industry, may calculate gross spend or similarly titled measures differently, which reduces its usefulness as a comparative measure.
(4)
Gross billings represents the amount we invoice our clients, net of allowances. As some of our clients have payment relationships directly with advertising inventory suppliers for the amount of advertising inventory the clients purchase through our platform, we do not invoice these clients for this spend, and we only invoice such clients for data, other services and our platform fee. Accordingly, gross billings are less than gross spend and represent gross spend, less platform discounts and less the value of advertising inventory and data that our clients purchase directly from publishers through our platform. We report revenue on a net basis which represents gross billings net of amounts we pay suppliers for the cost of advertising inventory, data and add-on features. We expect our revenue as a percentage of gross billings to fluctuate due to the types of services and features selected by our clients through our platform and certain volume discounts. We review gross billings for internal management purposes to adequately plan for our working capital needs and monitor collection risk. We track gross billings based on the billing address of the client. In many cases, international clients are serviced from our U.S. offices resulting in gross billings exceeding gross spend for international clients.
(5)
In January 2018, we repaid the outstanding principal and accrued interest.
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