(In thousands, unaudited)
| Three Months Ended March 31, | |||||||
| 2022 | 2021 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
| Net income (loss) | $ | 71,904 | $ | (2,872 | ) | ||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||
| Depreciation and amortization | 2,463 | 1,285 | |||||
| Amortization of debt discount | — | 67 | |||||
| Amortization of investment premiums, net of accretion of discounts | 954 | — | |||||
| Stock-based compensation, net of amounts capitalized | 55,277 | 658 | |||||
| Change in fair value of warrants liabilities | (21,433 | ) | — | ||||
| Change in fair value of contingent earn-out liability | (136,043 | ) | — | ||||
| Deferred income taxes | (227 | ) | — | ||||
| Allowance for doubtful accounts | 191 | 16 | |||||
| Other | 45 | (53 | ) | ||||
| Changes in operating assets and liabilities, net of effects of businesses acquired: | |||||||
| Accounts receivable | (3,988 | ) | (722 | ) | |||
| Inventories | 427 | 185 | |||||
| Prepaid expenses and other assets | (1,571 | ) | (144 | ) | |||
| Accounts payable | 659 | 1,869 | |||||
| Deferred revenue | 2,610 | 1,787 | |||||
| Accrued expenses and other liabilities | 3,254 | (1,020 | ) | ||||
| Net cash provided by (used in) operating activities | (25,478 | ) | 1,056 | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
| Purchases of property and equipment | (448 | ) | (162 | ) | |||
| Capitalized software and development costs | (3,596 | ) | (1,344 | ) | |||
| Purchase of investments | (30,378 | ) | — | ||||
| Maturities of investments | 46,200 | — | |||||
| Investment in convertible notes | — | (1,000 | ) | ||||
| Business acquisitions, net of cash acquired | (30,020 | ) | — | ||||
| Net cash used in investing activities | (18,242 | ) | (2,506 | ) | |||
| CASH FLOW FROM FINANCING ACTIVITIES: | |||||||
| Payment of transaction costs related to reverse recapitalization | — | (593 | ) | ||||
| Proceeds from exercise of stock options | 2,191 | 789 | |||||
| Payments for taxes related to net settlement of equity awards | (33,337 | ) | — | ||||
| Proceeds from exercise of warrants | 27,844 | — | |||||
| Repayment of debt | — | (1,099 | ) | ||||
| Other | 76 | — | |||||
| Net cash used in financing activities | (3,226 | ) | (903 | ) | |||
| Net change in cash, cash equivalents, and restricted cash | (46,946 | ) | (2,353 | ) | |||
| Effect of exchange rate changes on cash | (45 | ) | (12 | ) | |||
| Cash, cash equivalents, and restricted cash at beginning of year | 139,987 | 52,250 | |||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 92,996 | $ | 49,885 | |||
MATTERPORT, INC.
