Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
|
Three Months Ended
December 31, |
Year Ended
December 31, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Operating activities | ||||||||||||||||
| Net loss | $ | (31,893 | ) | $ | (30,918 | ) | $ | (128,584 | ) | $ | (96,536 | ) | ||||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||||||||||
| Depreciation of property and equipment | 1,987 | 2,308 | 8,318 | 6,675 | ||||||||||||
| Amortization of acquired intangible assets | 960 | 2,508 | 8,681 | 8,526 | ||||||||||||
| Amortization of course creation costs | 556 | 412 | 1,993 | 1,462 | ||||||||||||
| Equity-based compensation | 17,331 | 2,793 | 54,303 | 21,781 | ||||||||||||
| Provision for doubtful accounts | 182 | 119 | 675 | 479 | ||||||||||||
| Amortization of debt discount and debt issuance costs | — | 773 | 1,215 | 1,847 | ||||||||||||
| Debt extinguishment costs | — | — | 4,197 | 931 | ||||||||||||
| Deferred tax benefit | (146 | ) | (83 | ) | (244 | ) | (83 | ) | ||||||||
| Other | 153 | 63 | 153 | 63 | ||||||||||||
| Changes in assets and liabilities: | ||||||||||||||||
| Accounts receivable | (15,804 | ) | (13,403 | ) | (26,156 | ) | (16,123 | ) | ||||||||
| Prepaid expenses and other assets | (492 | ) | 408 | (3,482 | ) | (2,796 | ) | |||||||||
| Accounts payable | 457 | 173 | 1,385 | 2,561 | ||||||||||||
| Accrued expenses and other liabilities | 1,061 | 9,239 | 7,973 | 17,960 | ||||||||||||
| Accrued author fees | 671 | 803 | 2,123 | 2,131 | ||||||||||||
| Deferred revenue | 33,364 | 23,482 | 61,554 | 38,983 | ||||||||||||
| Net cash provided by (used in) operating activities | 8,387 | (1,323 | ) | (5,896 | ) | (12,139 | ) | |||||||||
| Investing activities | ||||||||||||||||
| Purchases of property and equipment | (2,220 | ) | (1,492 | ) | (8,796 | ) | (5,951 | ) | ||||||||
| Purchases of content library | (995 | ) | (613 | ) | (3,340 | ) | (2,382 | ) | ||||||||
| Net cash used in investing activities | (3,215 | ) | (2,105 | ) | (12,136 | ) | (8,333 | ) | ||||||||
| Financing activities | ||||||||||||||||
| Proceeds from initial public offering, net of underwriting discounts and commissions | — | — | 332,080 | — | ||||||||||||
| Payments of costs related to initial public offering | — | (132 | ) | (7,083 | ) | (307 | ) | |||||||||
| Taxes paid related to net share settlement | (16,827 | ) | — | (16,905 | ) | — | ||||||||||
| Proceeds from issuance of common stock from employee equity plans | 13,378 | — | 13,378 | — | ||||||||||||
| Borrowings of long-term debt | — | — | 20,000 | 115,000 | ||||||||||||
| Repayments of long-term debt | — | — | (137,710 | ) | (85,000 | ) | ||||||||||
| Payments of debt extinguishment costs | — | — | (2,179 | ) | — | |||||||||||
| Payments of debt issuance costs | — | (17 | ) | (450 | ) | (854 | ) | |||||||||
| Payments to settle equity appreciation rights | — | — | (325 | ) | — | |||||||||||
| Proceeds from the issuance of common units, net of issuance costs | — | 1,263 | — | 4,399 | ||||||||||||
| Redemption of incentive units | — | (923 | ) | — | (3,724 | ) | ||||||||||
| Other | (4 | ) | (4 | ) | (17 | ) | (16 | ) | ||||||||
| Net cash (used in) provided by financing activities | (3,453 | ) | 187 | 200,789 | 29,498 | |||||||||||
| Effect of exchange rate change on cash, cash equivalents, and restricted cash | (27 | ) | 16 | (163 | ) | 54 | ||||||||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | 1,692 | (3,225 | ) | 182,594 | 9,080 | |||||||||||
| Cash, cash equivalents, and restricted cash, beginning of period | 209,379 | 31,702 | 28,477 | 19,397 | ||||||||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 211,071 | $ | 28,477 | $ | 211,071 | $ | 28,477 | ||||||||
| Reconciliation of cash, cash equivalents, and restricted cash: | ||||||||||||||||
| Cash and cash equivalents | $ | 194,306 | $ | 28,267 | $ | 194,306 | $ | 28,267 | ||||||||
| Restricted cash | 16,765 | 210 | 16,765 | 210 | ||||||||||||
| Total cash, cash equivalents, and restricted cash | $ | 211,071 | $ | 28,477 | $ | 211,071 | $ | 28,477 | ||||||||
