Chegg 2013 Annual Report Download - page 97
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performance condition. Satisfaction of the performance condition was contingent upon the completion of our IPO
and we now expect the performance condition to be satisfied on March 15, 2014. We began recognizing stock-
based compensation expense associated with these RSUs for the already-elapsed service period upon the
completion of our IPO, which was approximately $12.5 million in 2013 based on an aggregate of approximately
1.2 million shares of common stock underlying these RSUs. Stock-based compensation expense related to the
remaining service period will be recognized ratably as the time-based service requirement is met.
In addition, in connection with our IPO, certain of our officers and consultants received anti-dilutive stock
option and RSU grants that will vest on the same schedule as the equity awards previously granted to each
executive, taken as a whole, including the vesting start date for such awards. Stock-based compensation expense
associated with the vested portion of these awards was recognized on the date of grant and stock-based
compensation expense related to the unvested portion will be recognized ratably as the time-based service
requirement is met.
Results of Operations
The following table summarizes our historical consolidated statements of operations (in thousands):
Year Ended December 31,
2013 2012 2011
Net revenues ............................. $255,575 $213,334 $172,018
Cost of revenues(1) ........................ 175,060 145,669 127,012
Gross profit .............................. 80,515 67,665 45,006
Operating expenses(1):
Technology and development ........... 41,944 39,315 29,591
Sales and marketing ................... 50,302 51,082 28,400
General and administrative ............. 40,486 25,117 20,328
Loss (gain) on liquidation of textbooks .... (1,186) (2,594) 2,785
Total operating expenses ........... 131,546 112,920 81,104
Loss from operations ...................... (51,031) (45,255) (36,098)
Interest and other expense, net ............... (4,177) (3,759) (1,703)
Loss before provision (benefit) for income
taxes ................................. (55,208) (49,014) (37,801)
Provision (benefit) for income taxes .......... 642 29 (200)
Net loss ................................. $(55,850) $ (49,043) $ (37,601)
(1) Includes stock-based compensation expense as follows:
Cost of revenues ................................. $ 1,185 $ 542 $ 537
Technology and development ...................... 9,414 7,657 3,840
Sales and marketing .............................. 7,107 5,164 3,062
General and administrative ......................... 19,252 4,682 5,692
Total stock-based compensation expense ......... $ 36,958 $ 18,045 $ 13,131
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