(In thousands, unaudited)
| Three Months Ended March 31, | |||||||
| 2023 | 2022 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
| Net income (loss) | $ | (53,842 | ) | $ | 71,904 | ||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||
| Depreciation and amortization | 4,391 | 2,463 | |||||
| Amortization of investment premiums, net of accretion of discounts | (681 | ) | 954 | ||||
| Stock-based compensation, net of amounts capitalized | 31,074 | 55,277 | |||||
| Change in fair value of warrants liability | (222 | ) | (21,433 | ) | |||
| Change in fair value of contingent earn-out liability | — | (136,043 | ) | ||||
| Deferred income taxes | (184 | ) | (227 | ) | |||
| Allowance for doubtful accounts | 289 | 191 | |||||
| Loss of excess inventory and purchase obligation | 622 | — | |||||
| Other | (381 | ) | 45 | ||||
| Changes in operating assets and liabilities, net of effects of businesses acquired: | |||||||
| Accounts receivable | (1,261 | ) | (3,988 | ) | |||
| Inventories | (3,258 | ) | 427 | ||||
| Prepaid expenses and other assets | 1,308 | (1,571 | ) | ||||
| Accounts payable | (2,287 | ) | 659 | ||||
| Deferred revenue | 1,841 | 2,610 | |||||
| Accrued expenses and other liabilities | 2,193 | 3,254 | |||||
| Net cash used in operating activities | (20,398 | ) | (25,478 | ) | |||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
| Purchases of property and equipment | (87 | ) | (448 | ) | |||
| Capitalized software and development costs | (2,567 | ) | (3,596 | ) | |||
| Purchase of investments | (57,577 | ) | (30,378 | ) | |||
| Maturities of investments | 108,806 | 46,200 | |||||
| Business acquisitions, net of cash acquired | (1,676 | ) | (30,020 | ) | |||
| Net cash provided by (used in) investing activities | 46,899 | (18,242 | ) | ||||
| CASH FLOW FROM FINANCING ACTIVITIES: | |||||||
| Proceeds from exercise of stock options | 686 | 2,191 | |||||
| Payments for taxes related to net settlement of equity awards | (329 | ) | (33,337 | ) | |||
| Proceeds from exercise of warrants | — | 27,844 | |||||
| Other | — | 76 | |||||
| Net cash provided by (used in) financing activities | 357 | (3,226 | ) | ||||
| Net change in cash, cash equivalents, and restricted cash | 26,858 | (46,946 | ) | ||||
| Effect of exchange rate changes on cash | 329 | (45 | ) | ||||
| Cash, cash equivalents, and restricted cash at beginning of year | 117,128 | 139,987 | |||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 144,315 | $ | 92,996 | |||
MATTERPORT, INC.
