Exhibit
No. |
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Description
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WalkMe Ltd.
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By:
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/s/ Andrew Casey
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Name: Andrew Casey
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Title: Chief Financial Officer
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First Quarter Subscription revenue grew 34% year-over-year to $51.4 million
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Added 8 Net New Enterprise-Wide DAP* Customers with Average ARR* up to $653 thousand
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Expanded strategic alliance with HCL
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Announced Strategic Partnership with Execution Management Company Celonis
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Revenue. Total revenue was $56.8 million in the first quarter of 2022, an increase of 33% year-over-year. Subscription revenue was $51.4 million, an increase of 34% year-over-year compared to 30%
year-over-year in the first quarter of 2021.
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Annualized Recurring Revenue (ARR)*: as of March 31, 2022 grew 30% year-over-year to $230 million.
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Remaining Performance Obligation (RPO)*: was $318 million as of March 31,
2022, an increase of 34% year-over-year.
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GAAP Operating Loss: was $29.6 million in the first quarter of 2022, or 52% of total revenue, compared to $13.0
million, or 31% of total revenue, in the first quarter of 2021.
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Non-GAAP Operating Loss*: was $18.6 million in the first quarter of 2022, or 33% of total revenue, compared to $9.5 million, or 22% of total revenue, in the
first quarter of 2021.
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Cash Flow: Net cash used in operations in the first quarter of 2022 was $18.3 million, or 32% of total revenue, compared to $2.9 million used in operations
or 7% of total revenue, in the first quarter of 2021.
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Free Cash Flow*: was negative $20.3 million in the first quarter of 2022, or 36% of total revenue, compared to
negative $4.1 million, or 10% of total revenue, in the first quarter of 2021.
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Cash, Cash Equivalents, and Short-term Deposits were $326.8 million as of
March 31, 2022.
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In the first quarter, WalkMe added eight net new Enterprise-Wide DAP* customers for a total of 134, representing customer count growth of 52% year-over-year. ARR* from DAP* customers grew 56% year-over-year.
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Customers with over $100 thousand in ARR* grew 29% year-over-year to 476 and customers with over $1 million in ARR grew 41% year-over-year to 31.
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In the fourth quarter of 2021, WalkMe updated and enhanced its third-party data sources for identifying customers with 500 or more employees and as a result now captures a greater number of customers in this category in the same period
compared to the previous methodology. ARR* from customers with 500 or more employees grew 32% year-over-year and represented 87% of total ARR* without the new data sources. With the new data sources, ARR* from customers with 500 or more
employees is now greater than 92% of total ARR*.
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Announced a strategic partnership with Celonis, a global leader in execution management, that enables joint customers to maximize the impact and return on digital transformation investments. WalkMe and Celonis are expected to collaborate
to optimize their respective customer’s’ business performance by offering WalkMe’s leading Digital Adoption Platform combined with the real-time process optimization capabilities of the Celonis Execution Management System (EMS) to
accelerate digital transformation.
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WalkMe expanded its relationship with HCL - a leading Global Technology Company - to create more go to market opportunities in their Digital Workplace Services Business Group. HCL has invested in WalkMe Digital Adoption skills to
deliver a strategic Managed Services Offering to support their customers.
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Total revenue of $59 to $60 million, representing a growth rate of 26% to 28% year-over-year
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Non-GAAP operating loss* of $20 to $19 million
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Reiterates Total revenue of $251 to $255 million, representing a growth rate of 30% to 32% year-over-year
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Non-GAAP operating loss* of $78 to $74 million
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Three months ended
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March 31,
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2022
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2021
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Revenues
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Subscription
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$
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51,389
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$
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38,474
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Professional services
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5,459
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4,180
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Total revenues
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56,848
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42,654
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Cost of revenues
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||||||||
Subscription(1)(2)
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6,875
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5,689
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Professional services(1)
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6,893
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5,080
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Total cost of revenues
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13,768
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10,769
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Gross profit
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43,080
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31,885
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Operating expenses
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Research and development(1)
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15,475
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10,422
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Sales and marketing(1)
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42,079
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25,135
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General and administrative(1)
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15,168
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9,373
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Total operating expenses
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72,722
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44,930
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Operating loss
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(29,642
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)
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(13,045
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)
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Financial income, net
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576
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45
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||||||
Loss before income taxes
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(29,066
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)
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(13,000
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)
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Income taxes
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(679
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)
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(404
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)
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Net loss
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(29,745
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)
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(13,404
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)
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Net loss attributable to non-controlling interest
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(258
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)
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(246
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)
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Adjustment attributable to non-controlling interest
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(6,458
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)
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10,816
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Net loss attributable to WalkMe Ltd.
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$
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(23,029
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)
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$
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(23,974
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)
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Net loss per share attributable to WalkMe Ltd. basic and diluted
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$
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(0.27
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)
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$
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(1.71
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)
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Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic and diluted
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83,964,074
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13,995,089
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(1) Includes share-based compensation expense as follows:
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Three months ended
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March 31,
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2022
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2021
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Cost of subscription revenues
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$
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260
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$
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54
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Cost of professional services
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591
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123
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Research and development
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1,566
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471
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Sales and marketing
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3,812
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793
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General and administrative
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4,647
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2,091
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Total share-based compensation expense
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$
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10,876
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$
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3,532
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(2) Includes amortization of acquired intangibles as follows:
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Three months ended
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March 31,
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2022
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2021
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Cost of revenues
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$
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176
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$
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-
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March 31,
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December 31,
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2022
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2021
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Assets
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Current assets:
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Cash and cash equivalents
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$
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249,513
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$
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276,889
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Short-term deposits
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77,301
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65,478
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Trade receivables, net
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47,447
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37,754
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Deferred contract acquisition costs
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21,270
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20,405
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Prepaid expenses and other current assets
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11,826
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7,954
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Total current assets
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407,357
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408,480
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Non-current assets:
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Deferred contract acquisition costs
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35,602
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35,969
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Other assets
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604
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987
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Property and equipment, net
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12,945
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10,885
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Goodwill and Intangible assets, net
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3,120
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3,296
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Total non-current assets
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52,271
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51,137
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Total assets
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$
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459,628
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$
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459,617
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Liabilities, redeemable non-controlling interest and shareholders’ equity
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Current liabilities:
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Trade payables
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$
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6,051
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$
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6,592
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Accrued expenses and other current liabilities
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41,141
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49,310
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Deferred revenues
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108,282
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86,024
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Total current liabilities
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155,474
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141,926
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Long-term liabilities:
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Deferred revenues
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1,170
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1,288
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Other long-term liabilities
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7,545
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6,892
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Total long-term liabilities
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8,715
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8,180
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Total liabilities
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164,189
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150,106
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Redeemable non-controlling interest
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17,091
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23,901
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Shareholders’ equity:
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Share capital and additional paid-in capital
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633,097
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610,193
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Other comprehensive income (loss)
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(224
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)
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455
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Accumulated deficit
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(354,525
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)
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(325,038
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)
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Total shareholders’ equity
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278,348
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285,610
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Total Liabilities, redeemable non-controlling interest and shareholders’ equity
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$
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459,628
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$
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459,617
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