[February 10, 2014] |
|
Silver Spring Networks Reports Fourth Quarter and Full Year 2013 Financial Results
REDWOOD CITY, Calif. --(Business Wire)--
Silver Spring Networks, Inc. (NYSE: SSNI) today announced financial
results for its fourth quarter and full year ended December 31, 2013.
Full Year 2013 Results (all comparisons made are against the
prior year period)
-
Non-GAAP revenue was $344.1 million, up 13%.
-
GAAP revenue was $326.9 million, up 66%.
-
Non-GAAP gross margin was 33.1%, as compared with 33.9% a year ago.
-
GAAP gross margin was 35.3% as compared to 16.1% a year ago.
-
Non-GAAP net loss was $3.1 million as compared with $5.7 million a
year ago.
-
GAAP net loss was $66.8 million as compared with $89.7 million a year
ago. GAAP net loss includes non-cash charges of $42.1 million in
connection with Silver Spring's initial public offering.
-
Silver Spring generated breakeven operating cash flow and has $145.9
million in cash and investments and no debt.
"We made good progress during 2013. We grew top line by 13%, entered
three new countries enlarging our global footprint, launched our
innovative street light solution, and expanded our total backlog to a
record $875 million," said Scott Lang, Chairman, President, and Chief
Executive Officer. "I remain confident that our leading networking
platform, proven value proposition, and large global market opportunity
position us well for long-term growth."
Business Highlights (through February 10, 2014, unless otherwise
stated)
-
18.2 million cumulative network endpoints delivered from
inception through December 31, 2013, up 15% from a year ago.
-
Record total backlog of $875 million as of December 31, 2013,
up 17% year-over-year.
-
Working with clients that represent an incremental 26M+ homes and
businesses that are piloting or deploying our technology in phases.
-
Won over 50% of the homes and businesses for networking and
advanced metering awarded in the U.S. in 2013; expanded life-to-date
estimated market share to approximately 33%. Entered three new
countries expanding global footprint.
-
Hawaiian Electric Company to network homes and businesses in
the initial phase of one of the country's most extensive smart grid
programs, covering advanced metering infrastructure, Customer IQ
portal, direct load control, volt-var optimization, prepayment, and
distributed generation integration.
-
Announced SilverLink™ Sensor Network. New approach to
organizing, programming, and using near real-time smart grid data from
the network to fuel new applications at up to 10x the speed and 1/10th
the cost of traditional utility IT infrastructure.
-
Launched Silver Spring App Store and expanded partner program. Software
developers leveraging smart grid data from the SilverLink Sensor
Network for innovative applications.
-
Appointed Peter Van Camp, Executive Chairman of Equinix, to
Board of Directors.
Q4 Results (all comparisons made are against the prior year
period)
-
Non-GAAP revenue for the fourth quarter was $89.6 million, up 5%.
-
GAAP revenue was $97.2 million, up 94%.
-
Non-GAAP gross margin was 30.0%, as compared with 33.5% a year ago.
-
GAAP gross margin was 34.7% as compared to 21.1% a year ago.
-
Non-GAAP net income was $0.1 million as compared with $0.6 million a
year ago.
-
GAAP net income was $0.4 million as compared with a GAAP net loss of
$21.0 million a year ago.
Conference Call
Silver Spring will host a conference call today at 1:30 pm PT (4:30 pm
ET) to review its results for the fourth quarter and full year ended
December 31, 2013 and its outlook for the future. During the course of
this call, Silver Spring may also disclose material developments
affecting its business and/or financial performance. Listeners may
access the conference call live at 877-407-0832 (U.S.) or 201-689-8433
(International) or via webcast at http://ir.silverspringnet.com.
A dial-in replay of the conference call will be available until February
24, 2014 and can be accessed at 877-660-6853 (domestic) or 201-612-7415
(international) passcode 13575377. An audio webcast replay of the
conference call will be available for one year at http://ir.silverspringnet.com.
About Silver Spring Networks
Silver Spring Networks is a leading networking platform and solutions
provider for smart energy networks. Silver Spring's pioneering IPv6
networking platform, with over 18 million Silver Spring enabled devices
delivered, is connecting utilities to homes and business throughout the
world with the goal of achieving greater energy efficiency for the
planet. Silver Spring's innovative solutions enable utilities to gain
operational efficiencies, improve grid reliability, and empower
consumers to monitor and manage energy consumption. Silver Spring
Networks' customers include major utilities around the globe such as
Baltimore Gas & Electric, CitiPower & Powercor, Commonwealth Edison, CPS
Energy, Florida Power & Light, Jemena Electricity Networks Limited,
Pacific Gas & Electric, Pepco Holdings, Progress Energy, and Singapore
Power, among others. To learn more, please visit www.silverspringnet.com.
Non-GAAP and Other Financial Measures
Silver Spring believes that its results of operations under generally
accepted accounting principles, or GAAP, when considered in isolation,
may only provide limited insight into the performance of its business in
any given period. As a result, Silver Spring manages its business, makes
planning decisions, evaluates its performance and allocates resources by
assessing non-GAAP measures such as non-GAAP revenue (billings), cost of
non-GAAP revenue (billings), non-GAAP gross profit (loss), non-GAAP
operating income (loss), non-GAAP net income (loss), non-GAAP earnings
(loss) per share, and adjusted EBITDA, and total backlog, in addition to
other financial measures presented in accordance with GAAP. Silver
Spring believes that these non-GAAP and other financial measures offer
valuable supplemental information regarding the performance of its
business, and will help investors better understand the sales volumes,
and gross margin and profitability trends, as well as the cash flow
characteristics, of its business. The non-GAAP measures should not be
considered in isolation from, are not a substitute for, and do not
purport to be an alternative to, revenue, cost of revenue, gross profit
(loss), operating loss, net loss, loss per share or any other
performance measure derived in accordance with GAAP. Silver Spring may
consider whether other significant non-recurring items that arise in the
future should also be excluded in calculating the non-GAAP financial
measures it uses.
Non-GAAP revenue (billings) represents amounts invoiced for products for
which ownership, typically evidenced by title and risk of loss, has
transferred or services that have been provided to the customer, and for
which payment is expected to be made in accordance with normal payment
terms. Non-GAAP revenue excludes amounts for undelivered products,
services to be performed in the future, and amounts paid or payable to
customers. Non-GAAP revenue is initially recorded as deferred revenue
and is recognized as GAAP revenue when all revenue recognition criteria
have been met under Silver Spring's accounting policies as described in
Silver Spring's filings with the Securities and Exchange Commission.
Silver Spring reconciles revenue to billings by adding revenue to the
change in deferred revenue in a given period.
Cost of non-GAAP revenue (billings) represents the cost associated with
products and services that have been delivered to the customer,
excluding stock-based compensation and amortization of intangibles. Cost
of product shipments for which revenue is not recognized in the period
incurred is recorded as deferred cost of revenue. Deferred cost of
revenue is expensed in the statement of operations as cost of revenue
when the corresponding revenue is recognized. Costs related to services
are expensed in the period incurred. Silver Spring reconciles cost of
revenue to non-GAAP cost of revenue by adding cost of revenue to the
change in deferred cost of revenue, less stock-based compensation and
amortization of intangibles included in cost of revenue, in a given
period.
Non GAAP gross profit (loss) is the difference between non-GAAP revenue
and cost of non-GAAP revenue.
Non-GAAP operating income (loss) represents operating loss adjusted for
non-GAAP revenue (billings) and cost of non-GAAP revenue (billings) and
excludes expenses related to the amortization of intangible assets,
legal settlements, and stock-based compensation.
Non-GAAP net income (loss) represents net loss adjusted for non-GAAP
revenue and cost of non-GAAP revenue, and excludes expenses related to
the amortization of intangible assets, legal settlements, stock-based
compensation, changes in fair value of preferred stock warrant
liabilities and embedded derivatives, and loss on extinguishment of
promissory notes.
Non-GAAP earnings (loss) per share represents non-GAAP net loss divided
by weighted average shares outstanding for the period.
Adjusted EBITDA is net income (loss) adjusted for changes in deferred
revenue and deferred cost of revenue, other (income) expense, net,
provision for income taxes, depreciation and amortization, stock-based
compensation and certain other items management believes affect the
comparability of operating results.
Total backlog represents future product and service billings that we
expect to generate pursuant to contracts that we have entered into with
our utility customers and meter manufacturers. Total backlog includes
order backlog, which represents future billings for open purchase orders
and other firm commitments.
Forward-Looking Statements
This press release contains forward-looking statements that involve
risks and uncertainties. These forward-looking statements include
statements regarding the momentum in Silver Spring Networks' business,
the performance and benefits of recently announced new product
introductions and innovations, future growth, and future financial
results. Statements including words such as "anticipate", "believe",
"estimate" or "expect" and statements in the future tense are
forward-looking statements. These forward-looking statements are
preliminary estimates and expectations based on current information and
are subject to business and economic risks and uncertainties that could
cause actual events or actual future results to differ materially from
the expectations set forth in the forward-looking statements. Important
factors that could cause results to differ materially from the
statements herein include: timing around customer decisions and
deployment pace; dependence on a limited number of customers and key
suppliers; general economic risks; specific economic risks in different
geographies and among different industries; failure to maintain or
increase renewals and increase business from existing customers;
uncertainties around continued success in sales growth and market share
gains; lengthy sales cycles with no assurances that a prospective
customer will select Silver Spring's products and services; amounts
included in backlog may not result in billings or revenue; adverse
publicity about, or consumer or political opposition to, the smart grid;
security breaches involving smart grid products or services; the ability
to integrate technology into third-party devices and Silver Spring's
relationship with third-party manufacturers; execution and customer
adoption risks related to new product introductions and innovation,
including our new SilverLink Sensor Network; the ability to attract and
retain personnel, including members of Silver Spring's management team;
changes in strategy; technological changes that make Silver Spring's
products and services less competitive; competition, particularly from
larger companies with more resources than Silver Spring; risks related
to retention of management; international business uncertainties; the
ability to acquire and integrate other businesses; and other risk
factors set forth from time to time in Silver Spring's filings with the
SEC, copies of which are available free of charge at the SEC's website
at www.sec.gov.
All forward-looking statements in this press release reflect Silver
Spring's expectations as of February 10, 2014. Silver Spring undertakes
no obligation, and expressly disclaims any obligation, to update any
forward-looking statements in this press release in light of new
information or future events. In addition, the financial results set
forth in this press release are estimates based on information currently
available to Silver Spring.
|
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|
|
|
|
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SILVER SPRING NETWORKS
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
2013
|
|
|
|
2012
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Product revenue
|
|
$
|
77,944
|
|
|
$
|
40,331
|
|
|
$
|
224,310
|
|
|
$
|
162,623
|
|
Service revenue
|
|
|
19,220
|
|
|
|
9,740
|
|
|
|
102,548
|
|
|
|
34,114
|
|
Net revenue
|
|
|
97,164
|
|
|
|
50,071
|
|
|
|
326,858
|
|
|
|
196,737
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
Product cost of revenue
|
|
|
50,163
|
|
|
|
26,967
|
|
|
|
150,315
|
|
|
|
115,325
|
|
Service cost of revenue
|
|
|
13,257
|
|
|
|
12,556
|
|
|
|
61,189
|
|
|
|
49,693
|
|
Total cost of revenue
|
|
|
63,420
|
|
|
|
39,523
|
|
|
|
211,504
|
|
|
|
165,018
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
33,744
|
|
|
|
10,548
|
|
|
|
115,354
|
|
|
|
31,719
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
16,167
|
|
|
|
15,126
|
|
|
|
77,018
|
|
|
|
61,998
|
|
Sales and marketing
|
|
|
8,417
|
|
|
|
7,372
|
|
|
|
34,931
|
|
|
|
29,104
|
|
General and administrative
|
|
|
9,208
|
|
|
|
8,237
|
|
|
|
45,160
|
|
|
|
29,261
|
|
Total operating expenses
|
|
|
33,792
|
|
|
|
30,735
|
|
|
|
157,109
|
|
|
|
120,363
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
(48
|
)
|
|
|
(20,187
|
)
|
|
|
(41,755
|
)
|
|
|
(88,644
|
)
|
|
|
|
|
|
|
|
|
|
Other income (expense)
|
|
|
|
|
|
|
|
|
Interest income (expense), net
|
|
|
138
|
|
|
|
(1,210
|
)
|
|
|
(1,152
|
)
|
|
|
(4,561
|
)
|
Conversion of promissory notes and remeasurement of warrants and
derivatives
|
|
|
-
|
|
|
|
308
|
|
|
|
(23,676
|
)
|
|
|
3,878
|
|
Other income (expense), net
|
|
|
138
|
|
|
|
(902
|
)
|
|
|
(24,828
|
)
|
|
|
(683
|
)
|
|
|
|
|
|
|
|
|
|
Income (loss) before provision for income taxes
|
|
|
90
|
|
|
|
(21,089
|
)
|
|
|
(66,583
|
)
|
|
|
(89,327
|
)
|
|
|
|
|
|
|
|
|
|
Provision (benefit) for income taxes
|
|
|
(268
|
)
|
|
|
(79
|
)
|
|
|
224
|
|
|
|
390
|
|
Net income (loss)
|
|
$
|
358
|
|
|
$
|
(21,010
|
)
|
|
$
|
(66,807
|
)
|
|
$
|
(89,717
|
)
|
Deemed dividend to convertible preferred stockholders
|
|
|
-
|
|
|
|
-
|
|
|
|
(105,000
|
)
|
|
|
-
|
|
Net income (loss) attributable to common stockholders
|
|
$
|
358
|
|
|
$
|
(21,010
|
)
|
|
$
|
(171,807
|
)
|
|
$
|
(89,717
|
)
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share
|
|
|
|
|
|
|
|
|
Basic net income (loss) per share attributable to common
stockholders
|
|
$
|
0.01
|
|
|
$
|
(5.65
|
)
|
|
$
|
(4.54
|
)
|
|
$
|
(24.45
|
)
|
Diluted net income (loss) per share attributable to common
stockholders
|
|
$
|
0.01
|
|
|
$
|
(5.65
|
)
|
|
$
|
(4.54
|
)
|
|
$
|
(24.45
|
)
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in computation
|
|
|
|
|
|
|
|
|
Basic
|
|
|
47,198
|
|
|
|
3,720
|
|
|
|
37,877
|
|
|
|
3,670
|
|
Diluted
|
|
|
49,603
|
|
|
|
3,720
|
|
|
|
37,877
|
|
|
|
3,670
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP results (in thousands, except per share data)
|
|
|
|
|
|
|
|
|
The following tables reconcile the Company's net income (loss) and
income (loss) per share as presented in its unaudited Condensed
Consolidated Statements of Operations and prepared in accordance
with GAAP to its non-GAAP net income (loss) and non-GAAP income
(loss) per share.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
2013
|
|
|
|
2012
|
|
Net income (loss)
|
|
$
|
358
|
|
|
$
|
(21,010
|
)
|
|
$
|
(66,807
|
)
|
|
$
|
(89,717
|
)
|
Change in deferred revenue, net of foreign currency translation
|
|
|
(7,516
|
)
|
|
|
35,505
|
|
|
|
17,228
|
|
|
|
107,596
|
|
Change in deferred cost of revenue, net of foreign currency
translation
|
|
|
(1,011
|
)
|
|
|
(17,993
|
)
|
|
|
(31,039
|
)
|
|
|
(38,860
|
)
|
Amortization of intangibles in cost of revenue
|
|
|
48
|
|
|
|
48
|
|
|
|
192
|
|
|
|
192
|
|
Conversion of promissory notes and remeasurement of warrants and
derivatives
|
|
|
-
|
|
|
|
(308
|
)
|
|
|
23,676
|
|
|
|
(3,878
|
)
|
Convertible notes accretion / interest
|
|
|
-
|
|
|
|
1,081
|
|
|
|
935
|
|
|
|
3,868
|
|
Stock-based compensation
|
|
|
8,001
|
|
|
|
3,269
|
|
|
|
52,504
|
|
|
|
15,092
|
|
Legal settlements
|
|
|
250
|
|
|
|
-
|
|
|
|
250
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income (loss)
|
|
$
|
130
|
|
|
$
|
592
|
|
|
$
|
(3,061
|
)
|
|
$
|
(5,707
|
)
|
|
|
|
|
|
|
|
|
|
Non-GAAP income (loss) per share
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.00
|
|
|
$
|
0.16
|
|
|
$
|
(0.08
|
)
|
|
$
|
(1.56
|
)
|
Diluted
|
|
$
|
0.00
|
|
|
$
|
0.02
|
|
|
$
|
(0.08
|
)
|
|
$
|
(1.56
|
)
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in computation
|
|
|
|
|
|
|
|
|
Basic
|
|
|
47,198
|
|
|
|
3,720
|
|
|
|
37,877
|
|
|
|
3,670
|
|
Diluted
|
|
|
49,603
|
|
|
|
29,394
|
|
|
|
37,877
|
|
|
|
3,670
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SILVER SPRING NETWORKS, INC.
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In thousands, except par values)
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
2013
|
|
2012 (a)
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
82,596
|
|
|
$
|
72,646
|
|
Short-term investments
|
|
|
63,256
|
|
|
|
-
|
|
Accounts receivable
|
|
|
69,724
|
|
|
|
56,528
|
|
Inventory
|
|
|
4,350
|
|
|
|
7,731
|
|
Deferred cost of revenue
|
|
|
37,460
|
|
|
|
45,298
|
|
Prepaid expenses and other current assets
|
|
|
4,758
|
|
|
|
3,456
|
|
Total current assets
|
|
|
262,144
|
|
|
|
185,659
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
12,364
|
|
|
|
12,701
|
|
Deferred cost of revenue, non-current
|
|
|
238,663
|
|
|
|
199,865
|
|
Deferred tax assets, non-current
|
|
|
1,613
|
|
|
|
8,265
|
|
Other long-term assets
|
|
|
1,567
|
|
|
|
11,254
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
$
|
516,351
|
|
|
$
|
417,744
|
|
|
|
|
|
|
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$
|
31,317
|
|
|
$
|
28,104
|
|
Accrued liabilities
|
|
|
21,282
|
|
|
|
14,831
|
|
Deferred revenue
|
|
|
111,293
|
|
|
|
89,838
|
|
Current portion of capital lease obligations
|
|
|
1,615
|
|
|
|
1,647
|
|
Deferred tax liability
|
|
|
1,176
|
|
|
|
7,897
|
|
|
|
|
|
|
Total current liabilities
|
|
|
166,683
|
|
|
|
142,317
|
|
|
|
|
|
|
Deferred revenue, non-current
|
|
|
413,360
|
|
|
|
418,218
|
|
Preferred stock warrant liability
|
|
|
-
|
|
|
|
11,261
|
|
Convertible promissory notes and embedded derivatives
|
|
|
-
|
|
|
|
56,319
|
|
Other liabilities
|
|
|
14,426
|
|
|
|
18,412
|
|
|
|
|
|
|
Convertible preferred stock:
|
|
|
|
|
$0.001 par value; no shares authorized, issued and outstanding, and
aggregate liquidation preference of $0 as of December 31, 2013;
26,072 shares authorized, 22,366 shares issued and outstanding, and
aggregate liquidation preference of $381,338 as of December 31, 2012
|
|
|
-
|
|
|
|
270,725
|
|
|
|
|
|
|
Stockholders' equity (deficit):
|
|
|
|
|
Preferred stock, $0.001 par value, 10,000 shares authorized and no
shares issued or outstanding as of December 31, 2013; no shares
authorized, issued or outstanding,as of December 31, 2012
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Common stock, $0.001 par value; 1,000,000 shares authorized, 47,384
shares issued and outstanding as of December 31, 2013; 80,000
shares authorized and 3,764 shares issued and outstanding as of
December 31, 2012
|
|
|
46
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
Additional paid-in capital
|
|
|
538,967
|
|
|
|
51,078
|
|
Accumulated other comprehensive income (loss)
|
|
|
130
|
|
|
|
(136
|
)
|
Accumulated deficit
|
|
|
(617,261
|
)
|
|
|
(550,454
|
)
|
|
|
|
|
|
Total stockholders' deficit
|
|
|
(78,118
|
)
|
|
|
(499,508
|
)
|
|
|
|
|
|
TOTAL LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS'
DEFICIT
|
|
$
|
516,351
|
|
|
$
|
417,744
|
|
|
|
|
|
|
(a) Derived from audited consolidated financial statements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SILVER SPRING NETWORKS
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
358
|
|
|
$
|
(21,010
|
)
|
|
$
|
(66,807
|
)
|
|
$
|
(89,717
|
)
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
1,656
|
|
|
|
1,796
|
|
|
|
6,646
|
|
|
|
7,255
|
|
Stock-based compensation
|
|
|
8,001
|
|
|
|
3,269
|
|
|
|
52,504
|
|
|
|
15,092
|
|
Conversion of promissory notes and remeasurement of warrants and
derivatives
|
|
|
-
|
|
|
|
(308
|
)
|
|
|
23,676
|
|
|
|
(3,878
|
)
|
Provision for inventory obsolescence
|
|
|
230
|
|
|
|
272
|
|
|
|
430
|
|
|
|
1,202
|
|
Non-cash interest expense on convertible notes
|
|
|
-
|
|
|
|
422
|
|
|
|
935
|
|
|
|
1,461
|
|
Other non-cash adjustments
|
|
|
(367
|
)
|
|
|
(137
|
)
|
|
|
63
|
|
|
|
358
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(10,119
|
)
|
|
|
7,656
|
|
|
|
(13,245
|
)
|
|
|
(23,177
|
)
|
Inventory
|
|
|
2,417
|
|
|
|
(772
|
)
|
|
|
2,951
|
|
|
|
(6,448
|
)
|
Prepaid expenses and other current assets
|
|
|
1,095
|
|
|
|
662
|
|
|
|
(1,153
|
)
|
|
|
1,109
|
|
Deferred cost of revenue
|
|
|
(1,022
|
)
|
|
|
(17,993
|
)
|
|
|
(30,960
|
)
|
|
|
(38,860
|
)
|
Other long-term assets
|
|
|
658
|
|
|
|
(1,090
|
)
|
|
|
4,504
|
|
|
|
(3,446
|
)
|
Accounts payable
|
|
|
4,594
|
|
|
|
3,553
|
|
|
|
2,848
|
|
|
|
10,883
|
|
Accrued liabilities
|
|
|
2,349
|
|
|
|
(138
|
)
|
|
|
4,728
|
|
|
|
(3,191
|
)
|
Customer deposits
|
|
|
186
|
|
|
|
(92
|
)
|
|
|
(61
|
)
|
|
|
(7,046
|
)
|
Deferred revenue
|
|
|
(7,893
|
)
|
|
|
35,505
|
|
|
|
16,597
|
|
|
|
107,596
|
|
Other liabilities
|
|
|
(299
|
)
|
|
|
2,407
|
|
|
|
(3,642
|
)
|
|
|
6,529
|
|
Net cash provided by (used in) operating activities
|
|
|
1,844
|
|
|
|
14,002
|
|
|
|
14
|
|
|
|
(24,278
|
)
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease in restricted cash
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
140
|
|
Proceeds from sales and maturity of short-term investments
|
|
|
9,122
|
|
|
|
-
|
|
|
|
9,122
|
|
|
|
-
|
|
Purchase of short-term investments
|
|
|
(10,888
|
)
|
|
|
-
|
|
|
|
(72,339
|
)
|
|
|
-
|
|
Purchases of property and equipment
|
|
|
(607
|
)
|
|
|
(605
|
)
|
|
|
(3,950
|
)
|
|
|
(4,854
|
)
|
Net cash used in investing activities
|
|
|
(2,373
|
)
|
|
|
(605
|
)
|
|
|
(67,167
|
)
|
|
|
(4,714
|
)
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment upon termination of preferred stock warrants of a related
party
|
|
|
-
|
|
|
|
-
|
|
|
|
(12,000
|
)
|
|
|
-
|
|
Proceeds from initial public offering, net of offering costs
|
|
|
(225
|
)
|
|
|
-
|
|
|
|
84,247
|
|
|
|
-
|
|
Proceeds from private placement of common stock with a related party
|
|
|
-
|
|
|
|
-
|
|
|
|
12,000
|
|
|
|
-
|
|
Payments on capital lease obligations
|
|
|
(549
|
)
|
|
|
(424
|
)
|
|
|
(2,034
|
)
|
|
|
(1,312
|
)
|
Proceeds from sale-leaseback transaction
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,676
|
|
Proceeds from issuance of convertible notes, net of paid issuance
costs
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
28,993
|
|
Proceeds from issuance of common stock, net of repurchases
|
|
|
2,331
|
|
|
|
49
|
|
|
|
2,909
|
|
|
|
594
|
|
Taxes paid related to net share settlement of equity awards
|
|
|
(297
|
)
|
|
|
-
|
|
|
|
(8,019
|
)
|
|
|
-
|
|
Net cash provided by (used in) financing activities
|
|
|
1,260
|
|
|
|
(375
|
)
|
|
|
77,103
|
|
|
|
29,951
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
731
|
|
|
|
13,022
|
|
|
|
9,950
|
|
|
|
959
|
|
Cash and cash equivalents - beginning of period
|
|
|
81,865
|
|
|
|
59,624
|
|
|
|
72,646
|
|
|
|
71,687
|
|
Cash and cash equivalents - end of period
|
|
$
|
82,596
|
|
|
$
|
72,646
|
|
|
$
|
82,596
|
|
|
$
|
72,646
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SILVER SPRING NETWORKS, INC.
|
UNAUDITED RECONCILIATION OF NET REVENUE BETWEEN GAAP AND NON-GAAP
|
(in thousands, except percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
YoY%
|
TYPE
|
|
CY12
|
|
CY13
|
|
CY13
|
|
CY13
|
|
CY13
|
|
Change
|
GAAP net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Product net revenue
|
|
$
|
40,332
|
|
|
$
|
41,720
|
|
|
$
|
47,996
|
|
|
$
|
56,650
|
|
|
$
|
77,944
|
|
|
93
|
%
|
Service net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed services and SaaS
|
|
|
4,018
|
|
|
|
4,559
|
|
|
|
37,508
|
|
|
|
9,835
|
|
|
|
8,159
|
|
|
103
|
%
|
Professional
|
|
|
5,721
|
|
|
|
7,424
|
|
|
|
18,006
|
|
|
|
5,996
|
|
|
|
11,061
|
|
|
93
|
%
|
Total service net revenue
|
|
$
|
9,739
|
|
|
$
|
11,983
|
|
|
$
|
55,514
|
|
|
$
|
15,831
|
|
|
$
|
19,220
|
|
|
97
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total GAAP net revenue
|
|
$
|
50,071
|
|
|
$
|
53,703
|
|
|
$
|
103,510
|
|
|
$
|
72,481
|
|
|
$
|
97,164
|
|
|
94
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Product
|
|
|
81
|
%
|
|
|
78
|
%
|
|
|
46
|
%
|
|
|
78
|
%
|
|
|
80
|
%
|
|
|
% Service
|
|
|
19
|
%
|
|
|
22
|
%
|
|
|
54
|
%
|
|
|
22
|
%
|
|
|
20
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in deferred net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in deferred product revenue
|
|
$
|
25,793
|
|
|
$
|
14,702
|
|
|
$
|
17,905
|
|
|
$
|
16,017
|
|
|
$
|
(7,054
|
)
|
|
|
Change in deferred service revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed services and SaaS
|
|
|
6,441
|
|
|
|
3,825
|
|
|
|
(28,245
|
)
|
|
|
16
|
|
|
|
1,000
|
|
|
|
Professional
|
|
|
3,271
|
|
|
|
1,541
|
|
|
|
(6,719
|
)
|
|
|
5,702
|
|
|
|
(1,462
|
)
|
|
|
Total change in deferred service revenue
|
|
|
9,712
|
|
|
|
5,366
|
|
|
|
(34,964
|
)
|
|
|
5,718
|
|
|
|
(462
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total change in deferred revenue
|
|
$
|
35,505
|
|
|
$
|
20,068
|
|
|
$
|
(17,059
|
)
|
|
$
|
21,735
|
|
|
$
|
(7,516
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Product net revenue
|
|
$
|
66,125
|
|
|
$
|
56,422
|
|
|
$
|
65,901
|
|
|
$
|
72,667
|
|
|
$
|
70,890
|
|
|
7
|
%
|
Service net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed services and SaaS
|
|
|
10,459
|
|
|
|
8,384
|
|
|
|
9,263
|
|
|
|
9,851
|
|
|
|
9,159
|
|
|
-12
|
%
|
Professional
|
|
|
8,992
|
|
|
|
8,965
|
|
|
|
11,287
|
|
|
|
11,698
|
|
|
|
9,599
|
|
|
7
|
%
|
Total service net revenue
|
|
$
|
19,451
|
|
|
$
|
17,349
|
|
|
$
|
20,550
|
|
|
$
|
21,549
|
|
|
$
|
18,758
|
|
|
-4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-GAAP net revenue
|
|
$
|
85,576
|
|
|
$
|
73,771
|
|
|
$
|
86,451
|
|
|
$
|
94,216
|
|
|
$
|
89,648
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Product
|
|
|
77
|
%
|
|
|
76
|
%
|
|
|
76
|
%
|
|
|
77
|
%
|
|
|
79
|
%
|
|
|
% Service
|
|
|
23
|
%
|
|
|
24
|
%
|
|
|
24
|
%
|
|
|
23
|
%
|
|
|
21
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOLUTION
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Advanced metering infrastructure
|
|
$
|
46,250
|
|
|
$
|
45,149
|
|
|
$
|
97,598
|
|
|
$
|
66,774
|
|
|
$
|
91,842
|
|
|
99
|
%
|
Distribution automation and demand side management
|
|
|
3,821
|
|
|
|
8,554
|
|
|
|
5,912
|
|
|
|
5,707
|
|
|
|
5,322
|
|
|
39
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total GAAP net revenue
|
|
$
|
50,071
|
|
|
$
|
53,703
|
|
|
$
|
103,510
|
|
|
$
|
72,481
|
|
|
$
|
97,164
|
|
|
94
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Advanced metering infrastructure
|
|
|
92
|
%
|
|
|
84
|
%
|
|
|
94
|
%
|
|
|
92
|
%
|
|
|
95
|
%
|
|
|
% Distribution automation and demand side management
|
|
|
8
|
%
|
|
|
16
|
%
|
|
|
6
|
%
|
|
|
8
|
%
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in deferred net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Advanced metering infrastructure
|
|
$
|
32,208
|
|
|
$
|
23,219
|
|
|
$
|
(21,380
|
)
|
|
$
|
19,244
|
|
|
$
|
(9,532
|
)
|
|
|
Distribution automation and demand side management
|
|
|
3,297
|
|
|
|
(3,151
|
)
|
|
|
4,321
|
|
|
|
2,491
|
|
|
|
2,016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total change in deferred net revenue
|
|
$
|
35,505
|
|
|
$
|
20,068
|
|
|
$
|
(17,059
|
)
|
|
$
|
21,735
|
|
|
$
|
(7,516
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Advanced metering infrastructure
|
|
$
|
78,458
|
|
|
$
|
68,368
|
|
|
$
|
76,218
|
|
|
$
|
86,018
|
|
|
$
|
82,310
|
|
|
5
|
%
|
Distribution automation and demand side management
|
|
|
7,118
|
|
|
|
5,403
|
|
|
|
10,233
|
|
|
|
8,198
|
|
|
|
7,338
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Non-GAAP net revenue
|
|
$
|
85,576
|
|
|
$
|
73,771
|
|
|
$
|
86,451
|
|
|
$
|
94,216
|
|
|
$
|
89,648
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Advanced metering infrastructure
|
|
|
92
|
%
|
|
|
93
|
%
|
|
|
88
|
%
|
|
|
91
|
%
|
|
|
92
|
%
|
|
|
% Distribution automation and demand side management
|
|
|
8
|
%
|
|
|
7
|
%
|
|
|
12
|
%
|
|
|
9
|
%
|
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GEOGRAPHY
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
46,421
|
|
|
$
|
50,747
|
|
|
$
|
94,516
|
|
|
$
|
68,562
|
|
|
$
|
71,602
|
|
|
54
|
%
|
International
|
|
|
3,650
|
|
|
|
2,956
|
|
|
|
8,994
|
|
|
|
3,919
|
|
|
|
25,562
|
|
|
600
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total GAAP net revenue
|
|
$
|
50,071
|
|
|
$
|
53,703
|
|
|
$
|
103,510
|
|
|
$
|
72,481
|
|
|
$
|
97,164
|
|
|
94
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% United States
|
|
|
93
|
%
|
|
|
94
|
%
|
|
|
91
|
%
|
|
|
95
|
%
|
|
|
74
|
%
|
|
|
% International
|
|
|
7
|
%
|
|
|
6
|
%
|
|
|
9
|
%
|
|
|
5
|
%
|
|
|
26
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in deferred net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
21,927
|
|
|
$
|
8,839
|
|
|
$
|
(21,032
|
)
|
|
$
|
15,289
|
|
|
$
|
1,369
|
|
|
|
International
|
|
|
13,578
|
|
|
|
11,229
|
|
|
|
3,973
|
|
|
|
6,446
|
|
|
|
(8,885
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total change in deferred net revenue
|
|
$
|
35,505
|
|
|
$
|
20,068
|
|
|
$
|
(17,059
|
)
|
|
$
|
21,735
|
|
|
$
|
(7,516
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
68,348
|
|
|
$
|
59,586
|
|
|
$
|
73,484
|
|
|
$
|
83,851
|
|
|
$
|
72,971
|
|
|
7
|
%
|
International
|
|
|
17,228
|
|
|
|
14,185
|
|
|
|
12,967
|
|
|
|
10,365
|
|
|
|
16,677
|
|
|
-3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-GAAP net revenue
|
|
$
|
85,576
|
|
|
$
|
73,771
|
|
|
$
|
86,451
|
|
|
$
|
94,216
|
|
|
$
|
89,648
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% United States
|
|
|
80
|
%
|
|
|
81
|
%
|
|
|
85
|
%
|
|
|
89
|
%
|
|
|
81
|
%
|
|
|
% International
|
|
|
20
|
%
|
|
|
19
|
%
|
|
|
15
|
%
|
|
|
11
|
%
|
|
|
19
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SILVER SPRING NETWORKS, INC.
|
UNAUDITED SUPPLEMENTAL FINANCIAL INFORMATION
|
(in thousands, except percentages and headcount)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
YoY%
|
|
|
CY12
|
|
CY13
|
|
CY13
|
|
CY13
|
|
CY13
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOW DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flow
|
|
$
|
14,002
|
|
|
$
|
(8,913
|
)
|
|
$
|
(14,048
|
)
|
|
$
|
21,131
|
|
|
$
|
1,844
|
|
|
-87
|
%
|
Operating cash flow - TTM
|
|
|
(24,278
|
)
|
|
|
(19,847
|
)
|
|
|
(19,158
|
)
|
|
|
12,172
|
|
|
|
14
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and short-term investments
|
|
$
|
72,646
|
|
|
$
|
142,354
|
|
|
$
|
124,970
|
|
|
$
|
143,431
|
|
|
$
|
145,852
|
|
|
101
|
%
|
Deferred net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
End of quarter
|
|
|
508,056
|
|
|
|
528,176
|
|
|
|
510,722
|
|
|
|
532,546
|
|
|
|
524,653
|
|
|
|
Less: Beginning of quarter
|
|
|
(472,551
|
)
|
|
|
(508,056
|
)
|
|
|
(528,176
|
)
|
|
|
(510,722
|
)
|
|
|
(532,546
|
)
|
|
|
Foreign currency translation adjustment
|
|
|
-
|
|
|
|
(52
|
)
|
|
|
395
|
|
|
|
(89
|
)
|
|
|
377
|
|
|
|
Change in deferred net revenue, net of foreign currency translation
|
|
$
|
35,505
|
|
|
$
|
20,068
|
|
|
$
|
(17,059
|
)
|
|
$
|
21,735
|
|
|
$
|
(7,516
|
)
|
|
|
Deferred cost of revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
End of quarter
|
|
|
245,163
|
|
|
|
260,572
|
|
|
|
268,236
|
|
|
|
275,101
|
|
|
|
276,123
|
|
|
|
Less: Beginning of quarter
|
|
|
(227,170
|
)
|
|
|
(245,163
|
)
|
|
|
(260,572
|
)
|
|
|
(268,236
|
)
|
|
|
(275,101
|
)
|
|
|
Foreign currency translation adjustment
|
|
|
-
|
|
|
|
14
|
|
|
|
99
|
|
|
|
(23
|
)
|
|
|
(11
|
)
|
|
|
Change in deferred cost of revenue, net of foreign currency
translation
|
|
$
|
17,993
|
|
|
$
|
15,423
|
|
|
$
|
7,763
|
|
|
$
|
6,842
|
|
|
$
|
1,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCK-BASED COMPENSATION
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
$
|
560
|
|
|
$
|
6,724
|
|
|
$
|
2,531
|
|
|
$
|
1,376
|
|
|
$
|
1,644
|
|
|
194
|
%
|
Research and development
|
|
|
934
|
|
|
|
9,544
|
|
|
|
3,607
|
|
|
|
1,905
|
|
|
|
2,277
|
|
|
144
|
%
|
Sales and marketing
|
|
|
550
|
|
|
|
3,346
|
|
|
|
1,526
|
|
|
|
950
|
|
|
|
1,238
|
|
|
125
|
%
|
General and administrative
|
|
|
1,225
|
|
|
|
7,054
|
|
|
|
3,181
|
|
|
|
2,759
|
|
|
|
2,842
|
|
|
132
|
%
|
Total
|
|
$
|
3,269
|
|
|
$
|
26,668
|
|
|
$
|
10,845
|
|
|
$
|
6,990
|
|
|
$
|
8,001
|
|
|
145
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMPLOYEES
|
|
|
566
|
|
|
|
572
|
|
|
|
589
|
|
|
|
608
|
|
|
|
602
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HOMES & BUSINESSES
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative network endpoints delivered*
|
|
|
15,781
|
|
|
|
16,507
|
|
|
|
17,008
|
|
|
|
17,509
|
|
|
|
18,184
|
|
|
15
|
%
|
*Endpoints refer to communication modules in electric meters
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SILVER SPRING NETWORKS
|
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
(In thousands, except per share data and percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
YOY %
|
|
|
CY12
|
|
CY13
|
|
CY13
|
|
CY13
|
|
CY13
|
|
Change
|
QUARTERLY RECONCILIATION OF RESULTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net revenue
|
|
$
|
50,071
|
|
|
$
|
53,703
|
|
|
$
|
103,510
|
|
|
$
|
72,481
|
|
|
$
|
97,164
|
|
|
94
|
%
|
Change in deferred revenue, net of foreign currency translation
|
|
|
35,505
|
|
|
|
20,068
|
|
|
|
(17,059
|
)
|
|
|
21,735
|
|
|
|
(7,516
|
)
|
|
|
Non-GAAP net revenue
|
|
$
|
85,576
|
|
|
$
|
73,771
|
|
|
$
|
86,451
|
|
|
$
|
94,216
|
|
|
$
|
89,648
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
|
$
|
10,548
|
|
|
$
|
10,134
|
|
|
$
|
48,250
|
|
|
$
|
23,226
|
|
|
$
|
33,744
|
|
|
220
|
%
|
Change in deferred revenue, net of foreign currency translation
|
|
|
35,505
|
|
|
|
20,068
|
|
|
|
(17,059
|
)
|
|
|
21,735
|
|
|
|
(7,516
|
)
|
|
|
Change in deferred cost of revenue, net of foreign currency
translation
|
|
|
(17,993
|
)
|
|
|
(15,423
|
)
|
|
|
(7,763
|
)
|
|
|
(6,842
|
)
|
|
|
(1,011
|
)
|
|
|
Amortization of intangibles in cost of revenue
|
|
|
48
|
|
|
|
48
|
|
|
|
48
|
|
|
|
48
|
|
|
|
48
|
|
|
|
Stock-based compensation
|
|
|
560
|
|
|
|
6,724
|
|
|
|
2,531
|
|
|
|
1,376
|
|
|
|
1,644
|
|
|
|
Non-GAAP gross profit
|
|
$
|
28,668
|
|
|
$
|
21,551
|
|
|
$
|
26,007
|
|
|
$
|
39,543
|
|
|
$
|
26,909
|
|
|
-6
|
%
|
GAAP gross margin % (as a % of GAAP net revenue)
|
|
|
21
|
%
|
|
|
19
|
%
|
|
|
47
|
%
|
|
|
32
|
%
|
|
|
35
|
%
|
|
|
Non-GAAP gross margin % (as a % of non-GAAP net revenue)
|
|
|
34
|
%
|
|
|
29
|
%
|
|
|
30
|
%
|
|
|
42
|
%
|
|
|
30
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income (loss)
|
|
$
|
(20,187
|
)
|
|
$
|
(39,574
|
)
|
|
$
|
9,982
|
|
|
$
|
(12,115
|
)
|
|
$
|
(48
|
)
|
|
100
|
%
|
Change in deferred revenue, net of foreign currency translation
|
|
|
35,505
|
|
|
|
20,068
|
|
|
|
(17,059
|
)
|
|
|
21,735
|
|
|
|
(7,516
|
)
|
|
|
Change in deferred cost of revenue, net of foreign currency
translation
|
|
|
(17,993
|
)
|
|
|
(15,423
|
)
|
|
|
(7,763
|
)
|
|
|
(6,842
|
)
|
|
|
(1,011
|
)
|
|
|
Amortization of intangibles in cost of revenue
|
|
|
48
|
|
|
|
48
|
|
|
|
48
|
|
|
|
48
|
|
|
|
48
|
|
|
|
Stock-based compensation
|
|
|
3,269
|
|
|
|
26,668
|
|
|
|
10,845
|
|
|
|
6,990
|
|
|
|
8,001
|
|
|
|
Legal settlements
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
250
|
|
|
|
Non-GAAP operating income (loss)
|
|
$
|
642
|
|
|
$
|
(8,213
|
)
|
|
$
|
(3,947
|
)
|
|
$
|
9,816
|
|
|
$
|
(276
|
)
|
|
-143
|
%
|
GAAP operating margin % (as a % of GAAP revenue)
|
|
|
-40
|
%
|
|
|
-74
|
%
|
|
|
10
|
%
|
|
|
-17
|
%
|
|
|
0
|
%
|
|
|
Non-GAAP operating margin % (as a % of non-GAAP net revenue)
|
|
|
1
|
%
|
|
|
-11
|
%
|
|
|
-5
|
%
|
|
|
10
|
%
|
|
|
0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss)
|
|
$
|
(21,010
|
)
|
|
$
|
(64,366
|
)
|
|
$
|
9,470
|
|
|
$
|
(12,269
|
)
|
|
$
|
358
|
|
|
102
|
%
|
Change in deferred revenue, net of foreign currency translation
|
|
|
35,505
|
|
|
|
20,068
|
|
|
|
(17,059
|
)
|
|
|
21,735
|
|
|
|
(7,516
|
)
|
|
|
Change in deferred cost of revenue, net of foreign currency
translation
|
|
|
(17,993
|
)
|
|
|
(15,423
|
)
|
|
|
(7,763
|
)
|
|
|
(6,842
|
)
|
|
|
(1,011
|
)
|
|
|
Other (income) expense, net
|
|
|
902
|
|
|
|
24,728
|
|
|
|
184
|
|
|
|
54
|
|
|
|
(138
|
)
|
|
|
Provision for income taxes
|
|
|
(79
|
)
|
|
|
64
|
|
|
|
328
|
|
|
|
100
|
|
|
|
(268
|
)
|
|
|
Depreciation and amortization
|
|
|
1,796
|
|
|
|
1,677
|
|
|
|
1,689
|
|
|
|
1,624
|
|
|
|
1,656
|
|
|
|
Stock-based compensation
|
|
|
3,269
|
|
|
|
26,668
|
|
|
|
10,845
|
|
|
|
6,990
|
|
|
|
8,001
|
|
|
|
Legal settlements
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
250
|
|
|
|
Adjusted EBITDA
|
|
$
|
2,390
|
|
|
$
|
(6,584
|
)
|
|
$
|
(2,306
|
)
|
|
$
|
11,392
|
|
|
$
|
1,332
|
|
|
-44
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss)
|
|
$
|
(21,010
|
)
|
|
$
|
(64,366
|
)
|
|
$
|
9,470
|
|
|
$
|
(12,269
|
)
|
|
$
|
358
|
|
|
102
|
%
|
Change in deferred revenue, net of foreign currency translation
|
|
|
35,505
|
|
|
|
20,068
|
|
|
|
(17,059
|
)
|
|
|
21,735
|
|
|
|
(7,516
|
)
|
|
|
Change in deferred cost of revenue, net of foreign currency
translation
|
|
|
(17,993
|
)
|
|
|
(15,423
|
)
|
|
|
(7,763
|
)
|
|
|
(6,842
|
)
|
|
|
(1,011
|
)
|
|
|
Amortization of intangibles in cost of revenue
|
|
|
48
|
|
|
|
48
|
|
|
|
48
|
|
|
|
48
|
|
|
|
48
|
|
|
|
Convertible notes accretion / interest
|
|
|
1,081
|
|
|
|
935
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
Conversion of promissory notes and remeasurement of warrants and
derivatives
|
|
|
(308
|
)
|
|
|
23,676
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
Stock-based compensation
|
|
|
3,269
|
|
|
|
26,668
|
|
|
|
10,845
|
|
|
|
6,990
|
|
|
|
8,001
|
|
|
|
Legal settlements
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
250
|
|
|
|
Non-GAAP net income (loss)
|
|
$
|
592
|
|
|
$
|
(8,394
|
)
|
|
$
|
(4,459
|
)
|
|
$
|
9,662
|
|
|
$
|
130
|
|
|
-78
|
%
|
GAAP net margin % (as a % of GAAP revenue)
|
|
|
-42
|
%
|
|
|
-120
|
%
|
|
|
9
|
%
|
|
|
-17
|
%
|
|
|
0
|
%
|
|
|
Non-GAAP net margin % (as a % of non-GAAP net revenue)
|
|
|
1
|
%
|
|
|
-11
|
%
|
|
|
-5
|
%
|
|
|
10
|
%
|
|
|
0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income (loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(5.65
|
)
|
|
$
|
(16.18
|
)
|
*
|
$
|
0.20
|
|
|
$
|
(0.26
|
)
|
|
$
|
0.01
|
|
|
|
Diluted
|
|
$
|
(5.65
|
)
|
|
$
|
(16.18
|
)
|
*
|
$
|
0.19
|
|
|
$
|
(0.26
|
)
|
|
$
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in computation
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
3,720
|
|
|
|
10,469
|
|
|
|
46,599
|
|
|
|
46,729
|
|
|
|
47,198
|
|
|
|
Diluted
|
|
|
3,720
|
|
|
|
10,469
|
|
|
|
48,995
|
|
|
|
46,729
|
|
|
|
49,603
|
|
|
|
* GAAP income (loss) per share is based on net loss
attributable to common stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income (loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.16
|
|
|
$
|
(0.80
|
)
|
|
$
|
(0.10
|
)
|
|
$
|
0.21
|
|
|
$
|
0.00
|
|
|
|
Diluted
|
|
$
|
0.02
|
|
|
$
|
(0.80
|
)
|
|
$
|
(0.10
|
)
|
|
$
|
0.19
|
|
|
$
|
0.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in computation
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
3,720
|
|
|
|
10,469
|
|
|
|
46,599
|
|
|
|
46,729
|
|
|
|
47,198
|
|
|
|
Diluted
|
|
|
29,394
|
|
|
|
10,469
|
|
|
|
46,599
|
|
|
|
49,620
|
|
|
|
49,603
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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