Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive and the margin improved substantially compared to both the prior quarter and the same quarter last year. Operating cash flow increased while capital expenditure remained minimal, driving the improvement.
- Revenue was higher than both the prior quarter and the same quarter last year. Operating cash flow increased significantly, resulting in free cash flow that was positive and higher than both comparison periods. Free cash flow margin improved accordingly.
- Compared to the prior quarter, revenue was slightly higher, while operating cash flow and free cash flow were markedly higher, and the margin improved. Compared to the same quarter last year, revenue was higher, operating cash flow turned from negative to positive, and the free cash flow margin turned positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$732.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$288.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$288.7M
Cash generated by operations before capital spending.
CapEx
$70000
Capital spending and related asset purchases.
FCF margin
40.3%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2022-06-30 | $776.2M | $106.8M | $115000 | $106.7M | 13.7% |
| 2022-09-30 | $713.1M | $174.5M | $221000 | $174.3M | 24.4% |
| 2022-12-31 | $702.3M | $163.2M | $41000 | $163.2M | 23.2% |
| 2023-03-31 | $715.4M | $288.7M | $70000 | $288.6M | 40.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -6387.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating cash flow strength
Operating cash flow increased markedly from both the prior quarter and the same quarter last year, driving free cash flow higher. This improvement was the primary factor behind the strong free cash flow margin.
The increase in operating cash flow directly lifted free cash flow and margin to positive levels.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the same quarter last year. Operating cash flow increased significantly, resulting in free cash flow that was positive and higher than both comparison periods. Free cash flow margin improved accordingly.
Compared to the prior quarter, revenue was slightly higher, while operating cash flow and free cash flow were markedly higher, and the margin improved. Compared to the same quarter last year, revenue was higher, operating cash flow turned from negative to positive, and the free cash flow margin turned positive.
Monitor the sustainability of operating cash flow, as the filing notes that the company's operations are funded primarily by client payments, advertising revenue, and in-app purchases.