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 2018, 2017, and 2016 and the selected consolidated balance sheet data as of December 31, 2018 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 2015 and 2014 and the selected consolidated balance sheet data as of December 31, 2016, 2015 and 2014 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,
2018
2017
2016
2015
2014
(in thousands, except per share data)
Consolidated Statements of Operations Data:
Revenue
$
477,294
$
308,217
$
202,926
$
113,836
$
44,548
Operating expenses (1):
Platform operations
114,098
66,230
39,876
22,967
12,559
Sales and marketing
87,071
61,379
46,056
26,794
14,590
Technology and development
83,892
52,806
27,313
12,819
7,250
General and administrative
84,910
58,446
32,163
13,276
9,385
Total operating expenses
369,971
238,861
145,408
75,856
43,784
Income from operations
107,323
69,356
57,518
37,980
764
Total other expense, net
1,586
5,731
13,684
8,125
1,707
Income (loss) before income taxes
105,737
63,625
43,834
29,855
(943
)
Provision for (benefit from) income taxes
17,597
12,827
23,352
13,926
(948
)
Net income
$
88,140
$
50,798
$
20,482
$
15,929
$
5
Net income (loss) attributable to common stockholders (2)
$
88,140
$
50,798
$
(26,727
)
$
8,764
$
—
Net income (loss) per share attributable to common stockholders–basic (2)
$
2.08
$
1.26
$
(1.46
)
$
0.85
$
—
Net income (loss) per share attributable to common stockholders–diluted (2)
$
1.92
$
1.15
$
(1.46
)
$
0.39
$
—
Year Ended December 31,
2018
2017
2016
2015
2014
(in thousands)
Non-GAAP Financial and Operating Data:
Gross spend (3)
$
2,350,877
$
1,555,856
$
1,027,984
$
552,325
$
211,266
Gross billings (4)
$
2,285,013
$
1,491,742
$
990,561
$
529,975
$
201,804
As of December 31,
2018
2017
2016
2015
2014
(in thousands)
Consolidated Balance Sheet Data:
Cash and cash equivalents
$
207,232
$
155,950
$
133,400
$
4,047
$
17,315
Accounts receivable, net
834,764
599,565
377,240
191,943
78,364
Total assets
1,117,872
797,164
537,596
210,231
102,238
Accounts payable
669,147
490,377
321,163
108,461
58,293
Long-term debt, net of current portion
—
27,000
25,847
45,918
16,493
Total liabilities
723,305
551,581
373,216
171,885
80,372
Convertible preferred stock
—
—
—
24,204
27,997
Total stockholders’ equity (deficit)
394,567
245,583
164,380
14,142
(6,131
)
(1)
Includes stock-based compensation expense as follows:
Year Ended December 31,
2018
2017
2016
2015
2014
(in thousands)
Platform operations
$
4,463
$
2,674
$
756
$
71
$
14
Sales and marketing
11,306
6,261
1,707
127
50
Technology and development
13,855
6,661
1,513
85
909
General and administrative
12,586
5,721
1,080
91
3,572
Total
$
42,210
$
21,317
$
5,056
$
374
$
4,545
Refer to Note 9 to our audited consolidated financial statements for more information regarding stock-based compensation expense.
(2)
Refer to 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.
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