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¹ Adjusted EBITDA is a non-GAAP financial measure. See “Key Performance Metrics and Non-GAAP Financial Measure” for additional information regarding this and other non-GAAP metrics used in this release.

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CONSOLIDATED BALANCE SHEETS

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 CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share data)

		Three Months Ended								Year Ended
		December 31,								December 31,
		2020				2019				2020				2019
Revenue		$	55,885			$	29,531			$	189,510			$	107,073
Cost of revenue			9,703				6,120				33,188				22,224
Gross profit			46,182				23,411				156,322				84,849
Operating expenses:
Research and development			13,570				9,322				45,719				34,483
Sales and marketing			27,403				15,663				94,379				62,750
General and administrative			8,983				6,495				28,034				22,366
Total operating expenses			49,956				31,480				168,132				119,599
Operating loss			(3,774	)			(8,069	)			(11,810	)			(34,750	)
Financial income (expenses), net			(4,192	)			684				(2,800	)			1,371
Loss before income taxes			(7,966	)			(7,385	)			(14,610	)			(33,379	)
Income taxes			(111	)			(54	)			(200	)			(160	)
Net loss		$	(8,077	)		$	(7,439	)		$	(14,810	)		$	(33,539	)
Deemed dividend to protected ordinary shareholders			-				-				-				(632	)
Net loss attributable to ordinary shareholders		$	(8,077	)		$	(7,439	)		$	(14,810	)		$	(34,171	)
Basic and diluted net loss per share attributable to ordinary shareholders		$	(0.23	)		$	(0.23	)		$	(0.46	)		$	(1.67	)
Basic and diluted weighted average ordinary shares			35,643,919				31,900,413				32,323,636				20,503,893

 CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

		Three Months Ended								Year Ended
		December 31,								December 31,
		2020				2019				2020				2019
Operating Activities
Net loss		$	(8,077	)		$	(7,439	)		$	(14,810	)		$	(33,539	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization			1,227				893				4,338				3,571
Amortization of discount of marketable securities			933				(430	)			1,091				(988	)
Shared-based compensation			6,235				2,337				15,815				8,899
Net income (loss) from exchange rate fluctuations			(987	)			(67	)			(1,076	)			65
Changes in assets and liabilities:
User funds			(4,831	)			(1,245	)			(42,039	)			(16,209	)
Operating lease ROU assets and liabilities, net			1,068				-				1,068				-
Amortization of discount and issuance costs of convertible notes			4,036				-				4,036				-
Other receivables			(1,446	)			(232	)			(1,777	)			(1,583	)
Trade payables			(2,404	)			1,750				(127	)			240
User accounts			4,653				(1,687	)			39,014				13,277
Deferred revenue			120				3,248				2,680				3,248
Other account payables and accrued expenses			4,206				(372	)			10,674				8,677
Payment of contingent consideration			-				-				(1,960	)			-
Non-current liabilities			45				336				208				398
Net cash provided by (used in) operating activities			4,778				(2,908	)			17,135				(13,944	)
Investing Activities
Acquisition of business, net			-				-				-				(9,967	)
Acquisition of intangible asset			-				-				(1,230	)			-
Purchase of property and equipment			(1,041	)			(181	)			(2,094	)			(1,016	)
Capitalization of internal-use software			(64	)			(216	)			(711	)			(739	)
Other receivables and non-current assets			39				(29	)			107				(40	)
Bank and Restricted deposits			(49,443	)			5,000				(74,443	)			(15,000	)
Investment in marketable securities			(235,229	)			(69,954	)			(431,176	)			(214,306	)
Proceeds from sale of marketable securities			25,800				69,993				183,190				104,990
Net cash provided by (used in) investing activities			(259,938	)			4,613				(326,357	)			(136,078	)
Financing Activities
Proceeds from exercise of options			2,696				200				9,189				773
Proceeds from initial public offering, net			-				(452	)			-				113,350
Proceeds from issuance of protected ordinary shares, net			-				-				-				4,340
Proceeds from follow on offering, net			(40	)			-				129,853				-
Proceeds from issuance of convertible notes, net			447,264				-				447,264				-
Purchase of capped call			(43,240	)			-				(43,240	)			-
Payment of contingent consideration			-				-				(2,040	)			-
Repayment of long-term loan			(152	)			(123	)			(524	)			(470	)
Tax withholding in connection with employees' options exercises			9,528				-				11,311				-
Net cash provided by (used in) financing activities			416,056				(375	)			551,813				117,993
Effect of exchange rate fluctuations on cash and cash equivalents			1,170				100				1,268				245
Increase (decrease) in cash and cash equivalents			162,066				1,430				243,859				(31,784	)
Cash and cash equivalents at the beginning of period			105,964				22,741				24,171				55,955
Cash and cash equivalents at the end of period		$	268,030			$	24,171			$	268,030			$	24,171

KEY PERFORMANCE METRICS

		Twelve Months Ended
		December 31,
		2020				2019
Annual active buyers (in thousands)			3,418				2,352
Annual spend per buyer ($)		$	205			$	170

RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT

(In thousands, except gross margin data)

		Three Months Ended								Year Ended
		December 31,								December 31,
		2020				2019				2020				2019
GAAP gross profit		$	46,182			$	23,411			$	156,322			$	84,849
Add:
Share-based compensation			172				49				384				142
Depreciation and amortization			506				393				1,962				1,728
Non-GAAP gross profit		$	46,860			$	23,853			$	158,668			$	86,719
Non-GAAP gross margin			83.9	%			80.8	%			83.7	%			81.0	%

RECONCILIATION OF GAAP TO NON-GAAP NET INCOME (LOSS) AND NET INCOME (LOSS) PER SHARE

(in thousands, except share and per share data)

		Three Months Ended								Year Ended
		December 31,								December 31,
		2020				2019				2020				2019
GAAP net loss attributable to ordinary shareholders		$	(8,077	)		$	(7,439	)		$	(14,810	)		$	(34,171	)
Add:
Deemed dividend to protected ordinary shareholders			-				-				-				632
Depreciation and amortization			1,227				893				4,338				3,571
Share-based compensation			6,235				2,337				15,815				8,899
Other initial public offering related expenses			-				-				-				416
Contingent consideration revaluation and acquisition related costs			932				1,509				768				3,873
Convertible notes amortization of discount and issuance costs			4,036				-				4,036				-
Exchange rate loss, net			416				-				262				-
Non-GAAP net income (loss)		$	4,769			$	(2,700	)		$	10,409			$	(16,780	)
GAAP basic weighted average number of ordinary shares outstanding			35,643,919				31,900,413				32,323,636				20,503,893
Add:
Additional weighted average shares giving effect to exchange of protected ordinary shares at the beginning of the period			-				-				-				8,596,606
Non-GAAP basic weighted average number of ordinary shares outstanding			35,643,919				31,900,413				32,323,636				29,100,499
Non-GAAP basic net income (loss) per share attributable to ordinary shareholders		$	0.13			$	(0.08	)		$	0.32			$	(0.58	)
Non-GAAP diluted weighted average number of ordinary shares outstanding			41,176,573				31,900,413				35,607,317				29,100,499
Non-GAAP diluted net income (loss) per share attributable to ordinary shareholders		$	0.12			$	(0.08	)		$	0.29			$	(0.58	)

RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA

(in thousands, except adjusted EBITDA margin data)

		Three Months Ended								Year Ended
		December 31,								December 31,
		2020				2019				2020				2019
GAAP net loss		$	(8,077	)		$	(7,439	)		$	(14,810	)		$	(33,539	)
Add:
Financial expense (income), net			4,192				(684	)			2,800				(1,371	)
Income taxes			111				54				200				160
Depreciation and amortization			1,227				893				4,338				3,571
Share-based compensation			6,235				2,337				15,815				8,899
Other initial public offering related expenses			-				-				-				416
Contingent consideration revaluation and acquisition related costs			932				1,509				768				3,873
Adjusted EBITDA		$	4,620			$	(3,330	)		$	9,111			$	(17,991	)
Adjusted EBITDA margin			8.3	%			(11.3	)%			4.8	%			(16.8	)%

RECONCILIATION OF GAAP TO NON-GAAP OPERATING EXPENSES

(in thousands)

		Three Months Ended								Year Ended
		December 31,								December 31,
		2020				2019				2020				2019
GAAP research and development		$	13,570			$	9,322			$	45,719			$	34,483
Less:
Share-based compensation			2,331				811				5,842				3,197
Depreciation and amortization			156				126				551				454
Acquisition related costs			-				-				-				106
Non-GAAP research and development		$	11,083			$	8,385			$	39,326			$	30,726
GAAP sales and marketing		$	27,403			$	15,663			$	94,379			$	62,750
Less:
Share-based compensation			1,196				488				3,084				1,853
Depreciation and amortization			513				325				1,625				1,212
Acquisition related costs			-				363				121				1,436
Non-GAAP sales and marketing		$	25,694			$	14,487			$	89,549			$	58,249
GAAP general and administrative		$	8,983			$	6,495			$	28,034			$	22,366
Less:
Share-based compensation			2,536				989				6,505				3,707
Depreciation and amortization			52				49				200				177
Other initial public offering related expenses			-				-				-				416
Contingent consideration revaluation and acquisition related costs			932				1,146				647				2,331
Non-GAAP general and administrative		$	5,463			$	4,311			$	20,682			$	15,735

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This release includes certain key performance metrics and financial measures not based on GAAP, including Adjusted EBITDA, Adjusted EBITDA margin, Non-GAAP gross profit, Non-GAAP gross margin, Non-GAAP operating expenses, Non-GAAP net income (loss) and Non-GAAP net income (loss) per share as well as operating metrics, including GMV, spend per buyer, active buyers and take rate. Some amounts in this release may not total due to rounding. All percentages have been calculated using unrounded amounts.

We define GMV or Gross Merchandise Value as the total value of transactions ordered through our platform, excluding value added tax, goods and services tax, service chargebacks and refunds. We define active buyers on any given date as buyers who have ordered a Gig or other services on our platform within the last 12-month period, irrespective of cancellations. Spend per buyer on any given date is calculated by dividing our GMV within the last 12-month period by the number of active buyers as of such date. Take rate is revenue for any such period divided by GMV for the same period.

Management and our board of directors use these metrics as supplemental measures of our performance that is not required by, or presented in accordance with GAAP because they assist us in comparing our operating performance on a consistent basis, as they remove the impact of items not directly resulting from our core operations. We also use these metrics for planning purposes, including the preparation of our internal annual operating budget and financial projections, to evaluate the performance and effectiveness of our strategic initiatives and to evaluate our capacity to expand our business.

Adjusted EBITDA, Adjusted EBITDA margin, Non-GAAP gross profit, Non-GAAP gross margin, Non-GAAP operating expenses, Non-GAAP net income (loss) and Non-GAAP net income (loss) per share as well as operating metrics, including GMV, spend per buyer, active buyers and take rate should not be considered in isolation, as an alternative to, or superior to net loss, revenue, cash flows or other performance measure derived in accordance with GAAP. These metrics are frequently used by analysts, investors and other interested parties to evaluate companies in our industry. Management believes that the presentation of non-GAAP metrics is an appropriate measure of operating performance because they eliminate the impact of expenses that do not relate directly to the performance of our underlying business.

These non-GAAP metrics should not be construed as an inference that our future results will be unaffected by unusual or other items. Additionally, Adjusted EBITDA and other non-GAAP metrics used herein are not intended to be a measure of free cash flow for management's discretionary use, as they do not reflect our tax payments and certain other cash costs that may recur in the future, including, among other things, cash requirements for costs to replace assets being depreciated and amortized. Management compensates for these limitations by relying on our GAAP results in addition to using Adjusted EBITDA and other non-GAAP metrics as supplemental measures of our performance. Our measure of Adjusted EBITDA and other non-GAAP metrics used herein is not necessarily comparable to similarly titled captions of other companies due to different methods of calculation.

See the tables above regarding reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures.

We are not able to provide a reconciliation of non-GAAP financial measures guidance for the first quarter of 2021, and the fiscal year ending December 31, 2021 to the comparable GAAP measures, because certain items that are excluded from non-GAAP financial measures cannot be reasonably predicted or are not in our control. In particular, we are unable to forecast the timing or magnitude of share based compensation, amortization of intangible assets, and income or loss on revaluation of contingent consideration, as applicable without unreasonable efforts, and these items could significantly impact, either individually or in the aggregate, GAAP measures in the future.

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our expected financial performance and operational performance for the first quarter of 2021 and the fiscal year ending December 31, 2021, our expected future Adjusted EBITDA profitability, as well as statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “forecast,” “estimate,” “may,” “should,” “anticipate” and similar statements of a future or forward-looking nature. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: our ability to attract and retain a large community of buyers and freelancers; our ability to achieve profitability; our ability to maintain and enhance our brand; our dependence on the continued growth and expansion of the market for freelancers and the services they offer; our ability to maintain user engagement on our website and to maintain and improve the quality of our platform; our dependence on the interoperability of our platform with mobile operating systems that we do not control; our ability to successfully implement our business plan during a global economic downturn caused by the COVID-19 pandemic that may impact the demand for our services or have a material adverse impact on our and our business partners’ financial condition and results of operations; our ability and the ability of third parties to protect our users’ personal or other data from a security breach and to comply with laws and regulations relating to consumer data privacy and data protection; our ability to detect errors, defects or disruptions in our platform; our ability to comply with the terms of underlying licenses of open source software components on our platform; our ability to expand into markets outside the United States; our ability to achieve desired operating margins; our compliance with a wide variety of U.S. and international laws and regulations; our ability to protect our intellectual property rights and to successfully halt the operations of copycat websites or misappropriation of data; our reliance on Amazon Web Services; our ability to mitigate payment and fraud risks; our dependence on relationships with payment partners, banks and disbursement partners; our dependence on our senior management and our ability to attract new talent; and the other important factors discussed under the caption “Risk Factors” in our annual report on Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”) on February 18, 2021, as such factors may be updated from time to time in our other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. In addition, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements that we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this release are inherently uncertain and may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Accordingly, you should not rely upon forward-looking statements as predictions of future events. In addition, the forward-looking statements made in this release relate only to events or information as of the date on which the statements are made in this release. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

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