| [April 23, 2014] |
 |
ServiceNow Reports Financial Results for First Quarter 2014
SANTA CLARA, Calif. --(Business Wire)--
ServiceNow® (NYSE: NOW), the enterprise IT cloud company, today
announced its financial results for its first quarter of 2014.
First quarter 2014 results:
-
Revenues of $139.1 million, an increase of 62% compared to the first
quarter of 2013, and an increase of 11% from the fourth quarter of
2013.
-
A GAAP net loss for the quarter of $43.3 million, or a $0.30 loss per
basic and diluted share, compared with a GAAP net loss of $13.4
million, or a $0.10 loss per basic and diluted share, in the first
quarter of 2013.
-
A non-GAAP net loss for the quarter of $11.7 million, or a $0.08 loss
per basic and diluted share, compared with a non-GAAP net loss of $1.9
million, or a $0.01 loss per basic and diluted share, in the first
quarter of 2013 (see the table entitled "Results of Operations GAAP to
Non-GAAP Reconciliation" for a reconciliation of these GAAP and
non-GAAP financial measures).
-
Deferred revenue of $308.5 million, a 16% increase compared to the
$266.7 million reported at the end of the prior quarter.
-
Billings of $180.8 million, a 9% increase compared to the $166.2
million reported in the previous quarter and a 64% increase compared
to the $110.3 million reported for the same period last year (see the
table entitled "Non-GAAP Billings Reconciliation" for a reconciliation
of non-GAAP billings to GAAP revenues).
"We are off to a great start in 2014. We exceeded our previously stated
financial outlook on revenue, added 134 net new customers and had nine
new deals with an annual contract value in excess of $1 million, a
record for ServiceNow," said Frank Slootman, president and chief
executive officer, ServiceNow. "We also continued to penetrate our
existing customer base, with upsells comprising 34% of our annual
contract value signed in the quarter and revenue per customer of
$241,000, an increase of 22% from the same period last year."
"Our strong first quarter performance included year-over-year billings
growth of 64%, and a deferred revenue balance increase of 16% from the
end of the prior quarter," added Michael Scarpelli, chief financial
officer, ServiceNow. "We also generated $24.2 million in operating cash
flow and $13.2 million free cash flow."
Financial Outlook
The financial guidance discussed below is on a non-GAAP basis, except
for revenues, and excludes stock-based compensation expense (see table
which reconciles these non-GAAP financial measures to the related GAAP
measures). Negative numbers are shown in parentheses.
For the second quarter of 2014, we expect:
-
Total revenues between $160 and $162 million, representing
year-over-year growth between 57% and 58%. Our total second quarter
revenue estimate consists of subscription revenues between $128 and
$129 million and professional services and other revenues between $32
and $33 million.
-
Subscription gross margin of approximately 77%, professional services
and other gross margin of approximately 30%, and overall gross margin
of approximately 67%. Our professional services and other revenues
outlook includes approximately $8 million related to Knowledge, our
annual user conference to be held at the end of April, with related
expenses of approximately $15 million recorded in sales and marketing.
-
Operating margin of approximately (6%).
For the full year 2014, we expect revenues to be in the range of $652 to
$657 million, representing year-over-year growth between 54% and 55%.
Our total annual revenues estimate consists of subscription revenues
between $545 and $547 million and professional services and other
revenues between $107 and $110 million.
Knowledge14 and 2nd Annual ServiceNow
Financial Analyst Day
ServiceNow will hold its Knowledge14® conference in San Francisco on
April 27th through May 1st. Knowledge is the
largest gathering of IT professionals using cloud services for
enterprise IT service automation. Knowledge14® is expected to attract
nearly 6,000 attendees including the world's most recognizable brands.
In conjunction with the event, ServiceNow will host its 2nd
Annual Financial Analyst Day on Monday April 28th beginning
at 8 a.m. PDT (15:00 GMT). A live stream of the Financial Analyst Day
can be accessed from the investor relations section of the ServiceNow
web site at http://investors.servicenow.com.
Conference Call Details
ServiceNow will host a conference call to discuss its financial results
for the first quarter of 2014 to begin today at 2 p.m. PDT (21:00 GMT).
Interested parties may listen to the call by dialing 877.474.9503
(passcode: 50280589), or if outside North America, by dialing
857.244.7556 (passcode: 50280589). Individuals may access the live
teleconference from the investor relations section of the ServiceNow web
site at http://investors.servicenow.com.
The webcast will be archived for a period of 30 days.
An audio replay of the conference call and webcast will be available two
hours after its completion and will be accessible for 30 days. To hear
the replay, interested parties may go to the investor relations section
of the ServiceNow website or dial 888.286.8010 (passcode: 32040274), or
if outside North America, by dialing 617.801.6888 (passcode: 32040274).
Statement regarding use of non-GAAP financial measures
The company reports non-GAAP results for gross margins, operating
margins, net income or loss, basic and diluted income or loss per share,
free cash flow and billings in addition to, and not as a substitute for,
or superior to, financial measures calculated in accordance with GAAP.
The company's financial measures under GAAP include stock-based
compensation expense, the amortization of debt discount and issuance
costs related to the convertible senior notes, and the related income
tax effect of these adjustments. Management believes the presentation of
operating results that excludes these items provides useful supplemental
information to investors and facilitates the analysis of the company's
core operating results and comparison of operating results across
reporting periods. Management also believes that this supplemental
non-GAAP information is therefore useful to investors in analyzing and
assessing the company's past and future operating performance.
Free cash flow, which is a non-GAAP financial measure, is calculated as
GAAP net cash provided by operating activities reduced by purchases of
property and equipment. Management believes information regarding free
cash flow provides investors with an important perspective on the cash
available to invest in our business and fund ongoing operations.
However, our calculation of free cash flow may not be comparable to
similar measures used by other companies.
Billings is calculated as revenue plus the change in total deferred
revenue. Management believes billings offers investors useful
supplemental information regarding the performance of our business, and
will help investors better understand the sales volumes and performance
of our business.
The company encourages investors to carefully consider its results under
GAAP, as well as its supplemental non-GAAP information and the
reconciliation between these presentations, to more fully understand its
business. Reconciliations between GAAP and non-GAAP results are
presented in the tables of this release.
Use of forward looking statements
This release contains "forward-looking statements" regarding our
performance, including in the section entitled "Financial Outlook."
Forward-looking statements are subject to known and unknown risks and
uncertainties and are based on potentially inaccurate assumptions that
could cause actual results to differ materially from those expected or
implied by the forward-looking statements. If any such risks or
uncertainties materialize or if any of the assumptions prove incorrect,
our results could differ materially from the results expressed or
implied by the forward-looking statements we make.
Among the important factors that could cause actual results to differ
materially from those in any forward-looking statements are: (i) errors,
interruptions, delays, or security breaches in or of our service or web
hosting, (ii) our ability to grow at our expected rate of growth,
including our ability to convert deferred revenue and backlog into
revenue, add and retain customers, and enter new geographies and
markets, (iii) our ability to continue to release, and gain customer
acceptance of, improved versions of our services, (iv) our ability to
develop and gain customer acceptance of new products and services,
including our platform, and (v) our ability to compete successfully
against existing and new competitors.
Further information on these and other factors that could affect our
financial results are included in our Form 10-K for the year ended
December 31, 2013 and in other filings we make with the Securities and
Exchange Commission from time to time, including our Form 10-Q that will
be filed for the quarter ended March 31, 2014.
We undertake no obligation, and do not intend, to update these
forward-looking statements, to review or confirm analysts' expectations,
or to provide interim reports or updates on the progress of the current
financial quarter.
About ServiceNow
ServiceNow is the enterprise IT cloud company. We transform IT by
automating and managing IT service relationships across the global
enterprise. Organizations deploy our service to create a single system
of record for IT and automate manual tasks, standardize processes and
consolidate legacy systems. Using our extensible platform, our customers
create custom applications and evolve the IT service model to service
domains inside and outside the enterprise. ServiceNow transforms IT from
the department of no to the department of now. For more information,
visit www.servicenow.com.
ServiceNow, Knowledge and the ServiceNow logo are registered trademarks
of ServiceNow. All other brand and product names are trademarks or
registered trademarks of their respective holders.
|
ServiceNow, Inc.
|
|
Condensed Consolidated Statements of Operations
|
|
(in thousands, except share and per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31, 2014
|
|
March 31, 2013
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
Subscription
|
|
$
|
117,375
|
|
|
$
|
71,558
|
|
|
Professional services and other
|
|
|
21,715
|
|
|
|
14,381
|
|
|
Total revenues
|
|
|
139,090
|
|
|
|
85,939
|
|
|
Cost of revenues (1):
|
|
|
|
|
|
Subscription
|
|
|
31,189
|
|
|
|
18,312
|
|
|
Professional services and other
|
|
|
21,925
|
|
|
|
13,996
|
|
|
Total cost of revenues
|
|
|
53,114
|
|
|
|
32,308
|
|
|
Gross profit
|
|
|
85,976
|
|
|
|
53,631
|
|
|
Operating expenses (1):
|
|
|
|
|
|
Sales and marketing
|
|
|
69,416
|
|
|
|
38,226
|
|
|
Research and development
|
|
|
31,110
|
|
|
|
16,039
|
|
|
General and administrative
|
|
|
21,631
|
|
|
|
12,279
|
|
|
Total operating expenses
|
|
|
122,157
|
|
|
|
66,544
|
|
|
Loss from operations
|
|
|
(36,181
|
)
|
|
|
(12,913
|
)
|
|
Interest and other income (expense), net
|
|
|
(5,963
|
)
|
|
|
119
|
|
|
Loss before provision for income taxes
|
|
|
(42,144
|
)
|
|
|
(12,794
|
)
|
|
Provision for income taxes
|
|
|
1,167
|
|
|
|
564
|
|
|
Net loss
|
|
$
|
(43,311
|
)
|
|
$
|
(13,358
|
)
|
|
Net loss per share - Basic and Diluted
|
|
$
|
(0.30
|
)
|
|
$
|
(0.10
|
)
|
|
Weighted-average shares used to compute net loss per share - Basic
and Diluted
|
|
|
142,060,025
|
|
|
|
129,782,029
|
|
|
|
|
|
|
|
|
(1) Includes total stock-based compensation expense as
follows:
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31, 2014
|
|
March 31, 2013
|
|
Cost of revenues:
|
|
|
|
|
|
Subscription
|
|
$
|
3,076
|
|
|
$
|
1,794
|
|
|
Professional services and other
|
|
|
2,392
|
|
|
|
821
|
|
|
Sales and marketing
|
|
|
9,043
|
|
|
|
3,985
|
|
|
Research and development
|
|
|
7,839
|
|
|
|
3,114
|
|
|
General and administrative
|
|
|
6,879
|
|
|
|
2,332
|
|
|
|
|
|
|
ServiceNow, Inc.
|
|
Condensed Consolidated Balance Sheets
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
March 31, 2014
|
|
December 31, 2013
|
|
ASSETS
|
|
(Unaudited)
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
337,920
|
|
$
|
366,303
|
|
Short-term investments
|
|
|
317,842
|
|
|
268,251
|
|
Accounts receivable, net
|
|
|
107,932
|
|
|
108,339
|
|
Current portion of deferred commissions
|
|
|
32,887
|
|
|
31,123
|
|
Prepaid expenses and other current assets
|
|
|
32,044
|
|
|
23,733
|
|
Total current assets
|
|
|
828,625
|
|
|
797,749
|
|
Deferred commissions, less current portion
|
|
|
21,575
|
|
|
21,318
|
|
Long-term investments
|
|
|
268,635
|
|
|
255,356
|
|
Property and equipment, net
|
|
|
86,200
|
|
|
75,560
|
|
Intangible assets, net
|
|
|
5,771
|
|
|
5,796
|
|
Goodwill
|
|
|
8,689
|
|
|
8,724
|
|
Other assets
|
|
|
4,766
|
|
|
3,973
|
|
Total assets
|
|
$
|
1,224,261
|
|
$
|
1,168,476
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
22,664
|
|
$
|
7,405
|
|
Accrued expenses and other current liabilities
|
|
|
48,619
|
|
|
68,130
|
|
Current portion of deferred revenue
|
|
|
294,223
|
|
|
252,553
|
|
Total current liabilities
|
|
|
365,506
|
|
|
328,088
|
|
Deferred revenue, less current portion
|
|
|
14,249
|
|
|
14,169
|
|
Convertible senior notes, net
|
|
|
421,840
|
|
|
414,777
|
|
Other long-term liabilities
|
|
|
18,924
|
|
|
17,183
|
|
Stockholders' equity
|
|
|
403,742
|
|
|
394,259
|
|
Total liabilities and stockholders' equity
|
|
$
|
1,224,261
|
|
$
|
1,168,476
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ServiceNow, Inc.
|
|
Condensed Consolidated Statements of Cash Flows
|
|
(in thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31, 2014
|
|
March 31, 2013
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
Net loss
|
|
$
|
(43,311
|
)
|
|
$
|
(13,358
|
)
|
|
Adjustments to reconcile net loss to net cash provided by
operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
|
7,938
|
|
|
|
4,364
|
|
|
Amortization of premiums on investments
|
|
|
1,814
|
|
|
|
1,095
|
|
|
Amortization of deferred commissions
|
|
|
11,149
|
|
|
|
5,366
|
|
|
Amortization of debt discount and issuance costs
|
|
|
7,081
|
|
|
|
-
|
|
|
Stock-based compensation
|
|
|
29,229
|
|
|
|
12,046
|
|
|
Tax benefit from employee stock plans
|
|
|
(940
|
)
|
|
|
(1,851
|
)
|
|
Other
|
|
|
507
|
|
|
|
581
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
|
(27
|
)
|
|
|
(2,938
|
)
|
|
Deferred commissions
|
|
|
(13,232
|
)
|
|
|
(9,269
|
)
|
|
Prepaid expenses and other assets
|
|
|
(8,910
|
)
|
|
|
3,688
|
|
|
Accounts payable
|
|
|
12,075
|
|
|
|
(1,471
|
)
|
|
Deferred revenue
|
|
|
42,172
|
|
|
|
25,729
|
|
|
Accrued expenses and other liabilities
|
|
|
(21,328
|
)
|
|
|
(8,959
|
)
|
|
Net cash provided by operating activities
|
|
|
24,217
|
|
|
|
15,023
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(10,968
|
)
|
|
|
(10,415
|
)
|
|
Purchases of investments
|
|
|
(134,856
|
)
|
|
|
(55,946
|
)
|
|
Sale of investments
|
|
|
25,528
|
|
|
|
-
|
|
|
Maturities of investments
|
|
|
44,668
|
|
|
|
55,350
|
|
|
Restricted cash
|
|
|
(55
|
)
|
|
|
-
|
|
|
Net cash used in investing activities
|
|
|
(75,683
|
)
|
|
|
(11,011
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Offering costs paid in connection with follow-on offering
|
|
|
-
|
|
|
|
(698
|
)
|
|
Proceeds from employee stock plans
|
|
|
22,214
|
|
|
|
21,468
|
|
|
Tax benefit from employee stock plans
|
|
|
940
|
|
|
|
1,851
|
|
|
Net cash provided by financing activities
|
|
|
23,154
|
|
|
|
22,621
|
|
|
Foreign currency effect on cash and cash equivalents
|
|
|
(71
|
)
|
|
|
(840
|
)
|
|
Net increase/(decrease) in cash and cash equivalents
|
|
|
(28,383
|
)
|
|
|
25,793
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
366,303
|
|
|
|
118,989
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
337,920
|
|
|
$
|
144,782
|
|
|
|
|
|
|
|
|
Calculation of free cash flows (a non-GAAP measure):
|
|
|
|
|
|
Net cash provided by operating activities
|
|
$
|
24,217
|
|
|
$
|
15,023
|
|
|
Purchases of property and equipment
|
|
|
(10,968
|
)
|
|
|
(10,415
|
)
|
|
Free cash flows
|
|
$
|
13,249
|
|
|
$
|
4,608
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ServiceNow, Inc.
|
|
Results of Operations GAAP to Non-GAAP Reconciliation
|
|
(in thousands except share and per share data)
|
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31, 2014
|
|
March 31, 2013
|
|
|
|
GAAP
|
|
Adjustments
|
|
Non-GAAP
|
|
GAAP
|
|
Adjustments
|
|
Non-GAAP
|
|
Reconciliation of gross profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription
|
|
$
|
117,375
|
|
|
$
|
-
|
|
|
|
$
|
117,375
|
|
|
$
|
71,558
|
|
|
$
|
-
|
|
|
|
$
|
71,558
|
|
|
Professional services and other
|
|
|
21,715
|
|
|
|
-
|
|
|
|
|
21,715
|
|
|
|
14,381
|
|
|
|
-
|
|
|
|
|
14,381
|
|
|
Total revenues
|
|
|
139,090
|
|
|
|
-
|
|
|
|
|
139,090
|
|
|
|
85,939
|
|
|
|
-
|
|
|
|
|
85,939
|
|
|
Cost of revenues (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription
|
|
|
31,189
|
|
|
|
(3,076
|
)
|
|
|
|
28,113
|
|
|
|
18,312
|
|
|
|
(1,794
|
)
|
|
|
|
16,518
|
|
|
Professional services and other
|
|
|
21,925
|
|
|
|
(2,392
|
)
|
|
|
|
19,533
|
|
|
|
13,996
|
|
|
|
(821
|
)
|
|
|
|
13,175
|
|
|
Total cost of revenues
|
|
|
53,114
|
|
|
|
(5,468
|
)
|
|
|
|
47,646
|
|
|
|
32,308
|
|
|
|
(2,615
|
)
|
|
|
|
29,693
|
|
|
Gross profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription
|
|
|
86,186
|
|
|
|
3,076
|
|
|
|
|
89,262
|
|
|
|
53,246
|
|
|
|
1,794
|
|
|
|
|
55,040
|
|
|
Professional services and other
|
|
|
(210
|
)
|
|
|
2,392
|
|
|
|
|
2,182
|
|
|
|
385
|
|
|
|
821
|
|
|
|
|
1,206
|
|
|
Total gross profit
|
|
$
|
85,976
|
|
|
$
|
5,468
|
|
|
|
$
|
91,444
|
|
|
$
|
53,631
|
|
|
$
|
2,615
|
|
|
|
$
|
56,246
|
|
|
|
|
Reconciliation of operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
$
|
69,416
|
|
|
$
|
(9,043
|
)
|
|
|
$
|
60,373
|
|
|
$
|
38,226
|
|
|
$
|
(3,985
|
)
|
|
|
$
|
34,241
|
|
|
Research and development
|
|
|
31,110
|
|
|
|
(7,839
|
)
|
|
|
|
23,271
|
|
|
|
16,039
|
|
|
|
(3,114
|
)
|
|
|
|
12,925
|
|
|
General and administrative
|
|
|
21,631
|
|
|
|
(6,879
|
)
|
|
|
|
14,752
|
|
|
|
12,279
|
|
|
|
(2,332
|
)
|
|
|
|
9,947
|
|
|
Total operating expenses
|
|
$
|
122,157
|
|
|
$
|
(23,761
|
)
|
|
|
$
|
98,396
|
|
|
$
|
66,544
|
|
|
$
|
(9,431
|
)
|
|
|
$
|
57,113
|
|
|
|
|
Reconciliation of loss from operations, interest and other income
(expense) net, provision for income taxes, net loss, and net loss
per share:
|
|
Loss from operations
|
|
$
|
(36,181
|
)
|
|
$
|
29,229
|
|
|
$
|
(6,952
|
)
|
|
$
|
(12,913
|
)
|
|
$
|
12,046
|
|
|
$
|
(867
|
)
|
|
Interest and other income (expense), net (2)
|
|
|
(5,963
|
)
|
|
|
7,081
|
|
|
|
1,118
|
|
|
|
119
|
|
|
|
-
|
|
|
|
119
|
|
|
Loss before provision for income taxes
|
|
$
|
(42,144
|
)
|
|
$
|
36,310
|
|
|
$
|
(5,834
|
)
|
|
$
|
(12,794
|
)
|
|
$
|
12,046
|
|
|
$
|
(748
|
)
|
|
Provision for income taxes (1) (2)
|
|
|
1,167
|
|
|
|
4,680
|
|
|
|
5,847
|
|
|
|
564
|
|
|
|
539
|
|
|
|
1,103
|
|
|
Net loss
|
|
$
|
(43,311
|
)
|
|
$
|
31,630
|
|
|
$
|
(11,681
|
)
|
|
$
|
(13,358
|
)
|
|
$
|
11,507
|
|
|
$
|
(1,851
|
)
|
|
Net loss per share - Basic and Diluted
|
|
$
|
(0.30
|
)
|
|
$
|
0.22
|
|
|
$
|
(0.08
|
)
|
|
$
|
(0.10
|
)
|
|
$
|
0.09
|
|
|
$
|
(0.01
|
)
|
|
Weighted-average shares used to compute net loss per share - Basis
and Diluted
|
|
|
142,060,025
|
|
|
|
-
|
|
|
|
142,060,025
|
|
|
|
129,782,029
|
|
|
|
-
|
|
|
|
129,782,029
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjustments include stock-based compensation and the
related tax effect.
|
|
|
|
|
|
|
(2) Adjustments include amortization of debt discount and
issuance costs for the convertible senior notes and the related tax
effect.
|
|
|
|
|
|
ServiceNow, Inc.
|
|
Non-GAAP Billings Reconciliation
|
|
(in thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
|
|
2014
|
|
2013
|
|
2013
|
|
Total revenues
|
|
$
|
139,090
|
|
$
|
125,230
|
|
$
|
85,939
|
|
Deferred revenue, end of period
|
|
|
308,472
|
|
|
266,722
|
|
|
194,765
|
|
Less: deferred revenue, beginning of period
|
|
|
266,722
|
|
|
225,801
|
|
|
170,361
|
|
Billings
|
|
$
|
180,840
|
|
$
|
166,151
|
|
$
|
110,343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ServiceNow, Inc.
|
|
Reconciliation of Non-GAAP Financial Guidance
|
|
|
|
The financial guidance provided below is an estimate based on
information available as of April 23, 2014. The company's future
performance and financial results are subject to risks and
uncertainties, and actual results could differ materially from the
guidance set forth below. Some of the factors that could affect
the company's financial results are stated above in this press
release. More information on potential factors that could affect
the company's financial results is included from time to time in
the company's public reports filed with the SEC, including the
company's Annual Report on Form 10-K filed on February 28, 2014,
the company's Form 10-Q for the quarter ended March 31, 2014 to be
filed with the SEC. The company assumes no obligation to update
any forward-looking statements or information, which speak as of
their respective dates.
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
June 30, 2014
|
|
|
|
|
|
Non-GAAP subscription gross margin
|
|
77%
|
|
|
|
|
|
Stock-based compensation expense
|
|
(3%)
|
|
|
|
|
|
GAAP subscription gross margin
|
|
74%
|
|
|
|
|
|
Non-GAAP professional services and other gross margin
|
|
30%
|
|
|
|
|
|
Stock-based compensation expense
|
|
(11%)
|
|
|
|
|
|
GAAP professional services and other gross margin
|
|
19%
|
|
|
|
|
|
Non-GAAP total gross margin
|
|
67%
|
|
|
|
|
|
Stock-based compensation expense
|
|
(4%)
|
|
|
|
|
|
GAAP total gross margin
|
|
63%
|
|
|
|
|
|
Non-GAAP operating margin
|
|
(6%)
|
|
|
|
|
|
Stock-based compensation expense
|
|
(25%)
|
|
|
|
|
|
GAAP operating margin
|
|
(31%)
|
|
|
|
|
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