[November 06, 2014] |
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Cvent Announces Third Quarter 2014 Financial Results
TYSONS CORNER, Va. --(Business Wire)--
Cvent, Inc. (NYSE: CVT), a leading cloud-based enterprise event
management platform, today announced its financial results for the third
quarter ended September 30, 2014.
Reggie Aggarwal, Chief Executive Officer of Cvent, said, "We saw strong
momentum across our business and a well-executed operational performance
which contributed to top and bottom line results that exceeded the
high-end of our guidance ranges. Cvent is delivering an attractive
combination of growth and profitability while at the same time investing
in expanding our sales reach and delivering further technology
innovation to fuel the meetings and events industry's shift toward
cloud-based solutions."
Aggarwal continued, "Investments we are making on the event management
side of our business increase our enterprise reach, leverage mobile
proliferations and enhance our leading platform. We are also investing
in adding value for our hotel and venue customers by not only delivering
more leads to them, but also by helping them analyze and prioritize
these leads, simplifying the response process, and ultimately enabling
them to increase productivity. We believe our acquisition of Decision
Street, a development-stage company, will accelerate our efforts in this
area. We remain confident that as we expand on our leadership position
in the market, we can take our network effects to the next level in the
years ahead, creating significant value for customers on both sides of
the meetings and events ecosystem, as well as for shareholders."
Third Quarter 2014 Financial Highlights
Revenue
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Total revenue was $37.4 million, an increase of 28% from the
comparable period in 2013.
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Platform Subscription revenue was $26.2 million, an increase of 30%
from the comparable period in 2013.
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Marketing Solutions revenue was $11.2 million, an increase of 25% from
the comparable period in 2013.
Operating Income
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GAAP operating income was $1.3 million, compared to GAAP operating
income of $0.3 million in the comparable period in 2013.
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Non-GAAP operating income was $3.7 million, compared to non-GAAP
operating income of $3.1 million in the comparable period in 2013.
Net Income
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GAAP net income was $1.1 million, compared to a GAAP net loss of
$(0.8) million for the comparable period in 2013. GAAP net income per
fully diluted share was $0.02, based on 43.2 million weighted average
common shares outstanding on a fully diluted basis, compared to GAAP
net loss per share of $(0.03) for the comparable period in 2013, based
on 29.7 million diluted weighted average common shares outstanding.
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Non-GAAP net income was $3.4 million compared to $2.0 million in the
comparable period in 2013. Non-GAAP net income per share was $0.08,
based on 43.2 million weighted average common shares outstanding on a
fully diluted basis, compared to non-GAAP net income per share of
$0.05 for the comparable period in 2013, based on 39.5 million pro
forma weighted average common shares outstanding.
Adjusted EBITDA
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Adjusted EBITDA was $6.5 million, representing an adjusted EBITDA
margin of 17%, compared to $5.1 million and 18% in the comparable
period in 2013.
Balance Sheet
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Cash, cash equivalents and short-term investments at September 30,
2014 totaled $182.7 million, compared to $190.4 million at the end of
the second quarter.
Recent Business Highlights
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Successfully deployed our Blue Release-a modernized and refreshed
version of our event management solution with new functionality-to our
event management customers two months ahead of schedule.
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Completed the acquisition of Decision Street, a development stage
technology company that helps hotels and venues prioritize and score
RFPs in order to focus on their most valuable group business
opportunities.
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Launched major upgrades to OnArrival Mobile App for planners, helping
to further simplify the onsite check-in process at meetings and events
for planners.
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Signed new Strategic Meeting Management customers across the US and
internationally, including Genentech, Land O'Lakes, and a Global
Fortune 10 company and expanded relationships with customers such as
Biogen, and IHS Global.
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Attracted new platform subscription customers including Blackboard,
Nuance Communications, the American Federation of Government Employees
and the Booth School of Business at the University of Chicago, and
expanded relationships with Loyola Marymount University, RE/MAX and
Sephora.
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Added new marketing solutions customers such as the Four Seasons Hotel
in Houston, Hotel X in Toronto, Sofitel Dubai Downtown and convention
and visitors bureaus representing College Park Georgia and Santa
Monica California, and expanded relationships with some of the largest
global chains, such as Accor Hotels and Hyatt Hotels.
Business Outlook Based on information available as of
November 6, 2014, Cvent is issuing guidance for the fourth quarter and
full year 2014 as indicated below.
Fourth Quarter 2014:
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Total revenue is expected to be in the range of $38.6 million to $39.0
million.
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GAAP net loss is expected to be in the range of $(2.0) million to
$(1.6) million, or $(0.05) to $(0.04) per share, based on 41.2 million
basic weighted average common shares outstanding.
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Non-GAAP net income is expected to be in the range of $0.6 million to
$1.0 million, or $0.01 to $0.02 per share, based on 43.3 million
diluted weighted average common shares outstanding.
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Adjusted EBITDA is expected to be in the range of $2.8 million to $3.2
million.
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The above adjusted EBITDA guidance includes a dilutive impact of
approximately $250,000 associated with the acquisition of Decision
Street.
Full Year 2014:
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Total revenue is expected to be in the range of $141.5 million to
$141.9 million.
-
GAAP net income is expected to be in the range of $1.7 million to $2.1
million, or $0.04 to $0.05 per share, based on 43.2 million diluted
weighted average common shares outstanding.
-
Non-GAAP net income is expected to be in the range of $8.9 million to
$9.3 million, or $0.21 to $0.22 per share, based on 43.2 million
diluted weighted average common shares outstanding.
-
Adjusted EBITDA is expected to be in the range of $17.4 million to
$17.8 million.
Conference Call Information
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What:
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Cvent Third Quarter 2014 Financial Results Conference Call
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When:
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Thursday, November 6, 2014
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Time:
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5:00 p.m. ET
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Live Call: (877) 317-6789, domestic
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(412) 317-6789, international
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Replay:
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(877) 344-7529, passcode 10054317, domestic
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(412) 317-0088, passcode 10054317, international
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Webcast:
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http://investors.cvent.com
(live and replay)
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A replay of the webcast will be available after the call and accessible
at http://investors.cvent.com.
About Cvent, Inc.
Cvent, Inc. (NYSE: CVT) is a leading cloud-based enterprise event
management platform. Cvent offers software solutions to event planners
for online event registration, venue selection, event management, mobile
apps for events, e-mail marketing and web surveys. Cvent provides hotels
with a targeted advertising platform designed to reach event planners
looking for suitable venues. Cvent solutions optimize the entire event
management value chain and have enabled clients around the world to
manage hundreds of thousands of meetings and events.
Non-GAAP Financial Measures
To supplement Cvent's consolidated financial statements, which are
prepared and presented in accordance with generally accepted accounting
principles in the United States ("GAAP"), Cvent provides investors with
certain non-GAAP financial measures, including Non-GAAP operating
income, Adjusted EBITDA, Non-GAAP net income (loss) and Non-GAAP net
income (loss) per share.
We believe that these non-GAAP measures of financial results provide
useful information to management and investors regarding certain
financial and business trends relating to Cvent's financial condition
and results of operations. We use these non-GAAP measures for financial,
operational and budgetary decision-making purposes, and to compare our
performance to that of prior periods for trend analyses. We believe that
these non-GAAP financial measures provide useful information regarding
past financial performance and future prospects, and permit us to more
thoroughly analyze key financial metrics used to make operational
decisions. We believe that the use of these non-GAAP financial measures
provides an additional tool for investors to use in evaluating ongoing
operating results and trends and in comparing our financial measures
with other software companies, many of which present similar non-GAAP
financial measures to investors.
We do not consider these non-GAAP measures in isolation or as an
alternative to financial measures determined in accordance with GAAP.
The principal limitation of these non-GAAP financial measures is that
they exclude significant expenses and income that are required by GAAP
to be recorded in the Company's financial statements. In addition, they
are subject to inherent limitations as they reflect the exercise of
judgment by management about which expenses and income are excluded or
included in determining these non-GAAP financial measures. In order to
compensate for these limitations, management presents non-GAAP financial
measures in connection with GAAP results. We urge investors to review
the reconciliation of our non-GAAP financial measures to the comparable
GAAP financial measures, which are included in this press release, and
not to rely on any single financial measure to evaluate our business.
Additionally, we have not reconciled the non-GAAP guidance measures
disclosed under "Business Outlook" to their corresponding GAAP
measures because we do not provide guidance for the various reconciling
items such as stock-based compensation, provision for income taxes,
depreciation and amortization, costs related to acquisitions (including
earn-outs), and foreign currency remeasurement and transactions gains
and losses, as certain items that impact these measures are out of our
control or cannot be reasonably predicted. Accordingly, reconciliations
to the non-GAAP guidance measures are not available without unreasonable
effort.
Cvent excludes the following items from these non-GAAP financial
measures:
Interest income. Cvent excludes this income primarily because it
is not considered a part of ongoing operating results.
Provision (benefit) for income taxes. Cvent excludes this expense
(benefit) from its non-GAAP financial measures primarily because it is
largely composed of non-cash expenses (benefits) that Cvent does not
consider a meaningful component of our operating results when assessing
the performance of our business. The exclusion of this expense (benefit)
facilitates the comparison of our business outlooks for future periods
with the results from prior periods.
Depreciation and amortization. In accordance with GAAP, operating
expenses include amortization of intangible assets such as software
development and acquired technology. Cvent excludes these items from its
non-GAAP financial measures because Cvent does not consider them part of
ongoing operating results when assessing the performance of our
business, and Cvent believes that doing so facilitates comparisons to
its historical operating results and to the results of other companies
in our industry, which may have their own unique acquisition histories
and varied approaches to capitalization of software development.
Stock-based compensation expense. Cvent's non-GAAP financial
measures exclude stock-based compensation, which consists of expenses
for stock options and other equity based awards. Cvent excludes these
expenses from its non-GAAP financial measures primarily because they are
non-cash expenses that we do not consider part of ongoing operating
results when assessing the performance of our business. Excluding these
amounts improves comparability of the performance of the business across
periods, and to the results of other companies in our industry, which
have their own unique histories associated with stock-based compensation.
Foreign currency losses (gains). Cvent's non-GAAP financial
measures exclude these losses (gains) primarily because they are
non-cash, and are driven primarily by our India operations, which for
accounting purposes is not considered a stand-alone entity and are
remeasured instead of translated. In accordance with GAAP, the losses
(gains) associated with remeasuring our India financial statements, are
recognized through our Consolidated Statements of Operations instead of
through our Consolidated Balance Sheets, where translation losses
(gains) from most foreign subsidiaries would be included. Excluding
these amounts improves comparability of the performance of the business
across periods and to the results of other companies in our industry,
which generally recognize similar losses (gains) through their balance
sheets.
Costs related to acquisitions. Cvent's non-GAAP financial
measures exclude contingent payments included in compensation expense
which relates to the potential cash payment to certain employees of
acquired companies whose right to receive such payment is forfeited if
they terminate their employment prior to the required service period. As
the contingent payments are subject to continued employment, GAAP
requires that these payments be accounted for as compensation expense
and such expense is subject to revaluation. Cvent excludes this item
from its non-GAAP financial measures primarily because it is a component
of the acquisitions and it is not considered part of ongoing operating
results when assessing the performance of our business. The exclusion of
these expenses facilitates the comparison of post-acquisition operating
results to the results of other companies in our industry, which have
their own unique acquisition histories.
Office relocation costs. These costs relate to Cvent's office
headquarters move during the third quarter of 2014. Cvent excludes this
item from its non-GAAP financial measures primarily because it is not
considered part of ongoing operating results when assessing the
performance of our business. The exclusion of these expenses facilitates
the comparison of operating results to the results of other companies in
our industry.
Cautionary Language Concerning Forward-Looking Statements
This press release contains "forward-looking statements" within the
meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995, including but not limited to, statements
regarding our future revenues, expenses, net income (loss), and
profitability, and statements regarding our expectations regarding the
growth of the meetings and events industry, our market position therein
and expectation regarding the rate of adoption of our cloud-based
solutions. These forward-looking statements are made as of the date of
this press release and were based on current expectations, estimates,
forecasts and projections as well as the beliefs and assumptions of
management. Words such as "expect," "anticipate," "should," "believe,"
"hope," "target," "project," "goals," "estimate," "potential,"
"predict," "may," "will," "might," "could," "intend," variations of
these terms or the negative of these terms and similar expressions are
intended to identify these forward-looking statements. Forward-looking
statements are subject to a number of risks and uncertainties, many of
which involve factors or circumstances that are beyond our control. Our
actual results could differ materially from those stated or implied in
forward-looking statements due to a number of factors, including but not
limited to, our ability to renew existing customers and attract new
customers; our ability to manage our growth effectively; our ability to
correct any material weaknesses and deficiencies in our internal control
over financial reporting and disclosure controls and procedures; and the
volatility of quarterly results and expectations. For a detailed
discussion of these and other risk factors, please refer to the risks
detailed in our filings with the Securities and Exchange Commission,
including, without limitation, our Annual Report on Form 10-K filed on
March 21, 2014 and other reports and filings with the Securities and
Exchange Commission. Past performance is not necessarily indicative of
future results. We anticipate that subsequent events and developments
will cause our views to change. We have no intention and undertake no
obligation to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise. These
forward-looking statements should not be relied upon as representing our
views as of any date subsequent to the date of this press release.
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Cvent, Inc.
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Consolidated Balance Sheets
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(in thousands, except share data)
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September 30, 2014
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December 31, 2013
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(Unaudited)
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Assets
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Current assets:
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Cash and cash equivalents
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$
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164,001
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$
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146,407
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Restricted cash
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412
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664
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Short-term investments
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18,684
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11,359
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Accounts receivable, net of reserve of $522 and $731, respectively
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21,701
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33,199
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Prepaid expense and other current assets
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10,005
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7,894
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Deferred tax assets
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3,915
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3,060
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Total current assets
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218,718
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202,583
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Property and equipment, net
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20,328
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7,906
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Capitalized software development costs, net
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15,947
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9,264
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Intangible assets, net
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4,305
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3,123
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Goodwill
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14,589
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12,703
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Other assets, non-current
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4,386
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257
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Total assets
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$
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278,273
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$
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235,836
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Liabilities and Stockholders' Equity
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Current liabilities:
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Accounts payable
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$
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3,284
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$
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5,388
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Accrued expenses and other current liabilities
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21,117
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18,477
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Deferred revenue
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61,103
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65,203
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Total current liabilities
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85,504
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89,068
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Deferred tax liabilities, non-current
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7,212
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3,323
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Deferred rent, non-current
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8,841
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568
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Other liabilities, non-current
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2,138
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839
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Total liabilities
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103,695
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93,798
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Commitments and contingencies
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Stockholders' equity
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Preferred stock, $0.001 par value, 100,000,000 shares authorized at
September 30, 2014 and December 31, 2013; and zero issued and
outstanding at September 30, 2014 and December 31, 2013
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-
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-
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Common stock, $0.001 par value;1,000,000,000 shares authorized at
September 30, 2014 and December 31, 2013; 41,655,709 and 40,409,791
shares issued and 41,135,495 and 39,889,577 outstanding at September
30, 2014 and December 31, 2013, respectively
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42
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40
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Treasury stock
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(3,966
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)
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(3,966
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)
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Additional paid-in capital
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197,783
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168,949
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Accumulated deficit
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(19,281
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)
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(22,985
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)
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Total stockholders' equity
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174,578
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|
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142,038
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Total liabilities and stockholders' equity
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$
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278,273
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$
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235,836
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Cvent, Inc.
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Consolidated Statements of Operations
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(in thousands, except share and per share data)
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(unaudited)
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Three Months Ended September 30,
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Nine Months Ended September 30,
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2014
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2013
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2014
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2013
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Revenue
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$
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37,386
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$
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29,145
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$
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102,920
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$
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80,440
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Cost of revenue1
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11,208
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8,412
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|
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29,455
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21,588
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Gross profit
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26,178
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20,733
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73,465
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58,852
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Operating expenses:
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Sales and marketing1
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14,571
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11,552
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44,215
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35,202
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Research and development1
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3,875
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2,813
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10,348
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8,105
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General and administrative1
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6,446
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6,092
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16,096
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16,891
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Total operating expenses
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24,892
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20,457
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70,659
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60,198
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Income (loss) from operations
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1,286
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276
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2,806
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(1,346
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)
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Interest income
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450
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295
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1,091
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|
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|
677
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Other expense
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(434
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)
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-
|
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(434
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)
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-
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Income (loss) from operations before income taxes
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1,302
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|
|
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|
571
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|
|
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3,463
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|
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(669
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)
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Provision for (benefit from) income taxes
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|
|
|
|
231
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|
|
|
|
1,400
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|
|
|
|
|
(241
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)
|
|
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2,136
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|
|
|
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|
|
|
|
|
|
|
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Net income (loss)
|
|
|
|
$
|
1,071
|
|
|
|
$
|
(829
|
)
|
|
|
|
$
|
3,704
|
|
|
|
$
|
(2,805
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.03
|
|
|
|
$
|
(0.03
|
)
|
|
|
|
$
|
0.09
|
|
|
|
$
|
(0.14
|
)
|
Diluted
|
|
|
|
$
|
0.02
|
|
|
|
$
|
(0.03
|
)
|
|
|
|
$
|
0.09
|
|
|
|
$
|
(0.14
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - basic
|
|
|
|
|
41,103,502
|
|
|
|
|
29,700,211
|
|
|
|
|
|
40,910,381
|
|
|
|
|
20,336,459
|
|
Weighted average common shares outstanding - diluted
|
|
|
|
|
43,151,239
|
|
|
|
|
29,700,211
|
|
|
|
|
|
43,174,201
|
|
|
|
|
20,336,459
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Stock-based compensation expense included in the above:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
|
$
|
213
|
|
|
|
$
|
353
|
|
|
|
|
$
|
552
|
|
|
|
$
|
886
|
|
Sales and marketing
|
|
|
|
|
415
|
|
|
|
|
393
|
|
|
|
|
|
1,117
|
|
|
|
|
2,092
|
|
Research and development
|
|
|
|
|
276
|
|
|
|
|
158
|
|
|
|
|
|
731
|
|
|
|
|
553
|
|
General and administrative
|
|
|
|
|
226
|
|
|
|
|
67
|
|
|
|
|
|
704
|
|
|
|
|
689
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
$
|
1,130
|
|
|
|
$
|
971
|
|
|
|
|
$
|
3,104
|
|
|
|
$
|
4,220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cvent, Inc.
|
Consolidated Statements of Cash Flows
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
|
2013
|
Operating activities:
|
|
|
|
|
|
|
|
|
Net Income (loss)
|
|
|
|
$
|
3,704
|
|
|
|
|
$
|
(2,805
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
7,175
|
|
|
|
|
|
5,782
|
|
Loss on asset disposal
|
|
|
|
|
434
|
|
|
|
|
|
-
|
|
Foreign currency transaction (gain) loss
|
|
|
|
|
(12
|
)
|
|
|
|
|
568
|
|
Stock-based compensation expense
|
|
|
|
|
3,104
|
|
|
|
|
|
4,220
|
|
Deferred taxes
|
|
|
|
|
(944
|
)
|
|
|
|
|
-
|
|
Change in operating assets and liabilities
|
|
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
|
|
12,643
|
|
|
|
|
|
13,626
|
|
Prepaid expenses and other assets
|
|
|
|
|
(2,256
|
)
|
|
|
|
|
(4,744
|
)
|
Accounts payable, accrued expenses and other liabilities
|
|
|
|
|
8,406
|
|
|
|
|
|
5,051
|
|
Deferred revenue
|
|
|
|
|
(4,100
|
)
|
|
|
|
|
(2,800
|
)
|
Net cash provided by operating activities
|
|
|
|
|
28,154
|
|
|
|
|
|
18,898
|
|
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
|
|
Purchase of property and equipment and capitalized software
development costs
|
|
|
|
|
(24,884
|
)
|
|
|
|
|
(7,761
|
)
|
Net purchases of short-term investments
|
|
|
|
|
(7,325
|
)
|
|
|
|
|
(3,967
|
)
|
Acquisition and acquisition-related consideration payments
|
|
|
|
|
(4,121
|
)
|
|
|
|
|
(90
|
)
|
Restricted cash
|
|
|
|
|
252
|
|
|
|
|
|
(196
|
)
|
Net cash used in investing activities
|
|
|
|
|
(36,078
|
)
|
|
|
|
|
(12,014
|
)
|
|
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from exercise of stock options and warrants
|
|
|
|
|
660
|
|
|
|
|
|
502
|
|
Repurchase of warrants
|
|
|
|
|
-
|
|
|
|
|
|
(1,275
|
)
|
Proceeds from initial public offering, net of expenses
|
|
|
|
|
-
|
|
|
|
|
|
122,131
|
|
Proceeds from follow-on public offering, net of expenses
|
|
|
|
|
24,846
|
|
|
|
|
|
-
|
|
Net cash provided by financing activities
|
|
|
|
|
25,506
|
|
|
|
|
|
121,358
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
|
12
|
|
|
|
|
|
(568
|
)
|
|
|
|
|
|
|
|
|
|
Increase in cash and cash equivalents
|
|
|
|
$
|
17,594
|
|
|
|
|
$
|
127,674
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
|
146,407
|
|
|
|
|
|
16,850
|
|
Cash and cash equivalents, end of period
|
|
|
|
$
|
164,001
|
|
|
|
|
$
|
144,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30,
|
|
|
|
Nine months ended September 30,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
(In thousands)
|
Cost of revenue
|
|
|
|
$
|
11,208
|
|
|
|
$
|
8,412
|
|
|
|
|
$
|
29,455
|
|
|
|
$
|
21,588
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense
|
|
|
|
|
(213
|
)
|
|
|
|
(353
|
)
|
|
|
|
|
(552
|
)
|
|
|
|
(886
|
)
|
Non-GAAP Cost of Revenue Expenses
|
|
|
|
$
|
10,995
|
|
|
|
$
|
8,059
|
|
|
|
|
$
|
28,903
|
|
|
|
$
|
20,702
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30,
|
|
|
|
Nine months ended September 30,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
(In thousands)
|
Sales and marketing
|
|
|
|
$
|
14,571
|
|
|
|
$
|
11,552
|
|
|
|
|
$
|
44,215
|
|
|
|
$
|
35,202
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense
|
|
|
|
|
(415
|
)
|
|
|
|
(393
|
)
|
|
|
|
|
(1,117
|
)
|
|
|
|
(2,092
|
)
|
Non-GAAP Sales & Marketing Expenses
|
|
|
|
$
|
14,156
|
|
|
|
$
|
11,159
|
|
|
|
|
$
|
43,098
|
|
|
|
$
|
33,110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30,
|
|
|
|
Nine months ended September 30,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
(In thousands)
|
Research and Development
|
|
|
|
$
|
3,875
|
|
|
|
$
|
2,813
|
|
|
|
|
$
|
10,348
|
|
|
|
$
|
8,105
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense
|
|
|
|
|
(276
|
)
|
|
|
|
(158
|
)
|
|
|
|
|
(731
|
)
|
|
|
|
(553
|
)
|
Non-GAAP Research & Development Expenses
|
|
|
|
$
|
3,599
|
|
|
|
$
|
2,655
|
|
|
|
|
$
|
9,617
|
|
|
|
$
|
7,552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30,
|
|
|
|
Nine months ended September 30,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
(In thousands)
|
General and administrative
|
|
|
|
$
|
6,446
|
|
|
|
$
|
6,092
|
|
|
|
|
$
|
16,096
|
|
|
|
$
|
16,891
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense
|
|
|
|
|
(226
|
)
|
|
|
|
(67
|
)
|
|
|
|
|
(704
|
)
|
|
|
|
(689
|
)
|
Costs related to acquisitions
|
|
|
|
|
(475
|
)
|
|
|
|
(1,019
|
)
|
|
|
|
|
(1,255
|
)
|
|
|
|
(2,052
|
)
|
Foreign currency remeasurement and transaction gains (losses)
|
|
|
|
|
(610
|
)
|
|
|
|
(845
|
)
|
|
|
|
|
(125
|
)
|
|
|
|
(2,009
|
)
|
Office relocation costs
|
|
|
|
|
(155
|
)
|
|
|
|
-
|
|
|
|
|
|
(155
|
)
|
|
|
|
-
|
|
Non-GAAP General and Administrative Expenses
|
|
|
|
$
|
4,980
|
|
|
|
$
|
4,161
|
|
|
|
|
$
|
13,857
|
|
|
|
$
|
12,141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30,
|
|
|
|
Nine months ended September 30,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
(In thousands)
|
Net income (loss)
|
|
|
|
$
|
1,071
|
|
|
|
$
|
(829
|
)
|
|
|
|
$
|
3,704
|
|
|
|
$
|
(2,805
|
)
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
|
(450
|
)
|
|
|
|
(295
|
)
|
|
|
|
|
(1,091
|
)
|
|
|
|
(677
|
)
|
Other expense
|
|
|
|
|
434
|
|
|
|
|
-
|
|
|
|
|
|
434
|
|
|
|
|
-
|
|
Provision for (benefit from) income taxes
|
|
|
|
|
231
|
|
|
|
|
1,400
|
|
|
|
|
|
(241
|
)
|
|
|
|
2,136
|
|
Depreciation and amortization expense
|
|
|
|
|
2,836
|
|
|
|
|
2,030
|
|
|
|
|
|
7,175
|
|
|
|
|
5,782
|
|
Stock-based compensation expense
|
|
|
|
|
1,130
|
|
|
|
|
971
|
|
|
|
|
|
3,104
|
|
|
|
|
4,220
|
|
Foreign currency remeasurement and transaction (gains) losses
|
|
|
|
|
610
|
|
|
|
|
845
|
|
|
|
|
|
125
|
|
|
|
|
2,009
|
|
Costs related to acquisitions
|
|
|
|
|
475
|
|
|
|
|
1,019
|
|
|
|
|
|
1,255
|
|
|
|
|
2,052
|
|
Office relocation costs
|
|
|
|
|
155
|
|
|
|
|
-
|
|
|
|
|
|
155
|
|
|
|
|
-
|
|
Adjusted EBITDA
|
|
|
|
$
|
6,492
|
|
|
|
$
|
5,141
|
|
|
|
|
$
|
14,620
|
|
|
|
$
|
12,717
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30,
|
|
|
|
Nine months ended September 30,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
(In thousands)
|
GAAP operating income (loss)
|
|
|
|
$
|
1,286
|
|
|
|
$
|
276
|
|
|
|
|
$
|
2,806
|
|
|
|
$
|
(1,346
|
)
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense
|
|
|
|
|
1,130
|
|
|
|
|
971
|
|
|
|
|
|
3,104
|
|
|
|
|
4,220
|
|
Foreign currency remeasurement and transaction (gains) losses
|
|
|
|
|
610
|
|
|
|
|
845
|
|
|
|
|
|
125
|
|
|
|
|
2,009
|
|
Costs related to acquisitions
|
|
|
|
|
475
|
|
|
|
|
1,019
|
|
|
|
|
|
1,255
|
|
|
|
|
2,052
|
|
Office relocation costs
|
|
|
|
|
155
|
|
|
|
|
-
|
|
|
|
|
|
155
|
|
|
|
|
-
|
|
Non-GAAP operating income
|
|
|
|
$
|
3,656
|
|
|
|
$
|
3,111
|
|
|
|
|
$
|
7,445
|
|
|
|
$
|
6,935
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30,
|
|
|
|
Nine months ended September 30,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
(In thousands)
|
GAAP net income (loss)
|
|
|
|
$
|
1,071
|
|
|
|
$
|
(829
|
)
|
|
|
|
$
|
3,704
|
|
|
|
$
|
(2,805
|
)
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense
|
|
|
|
|
1,130
|
|
|
|
|
971
|
|
|
|
|
|
3,104
|
|
|
|
|
4,220
|
|
Foreign currency remeasurement and transaction (gains) losses
|
|
|
|
|
610
|
|
|
|
|
845
|
|
|
|
|
|
125
|
|
|
|
|
2,009
|
|
Costs related to acquisitions
|
|
|
|
|
475
|
|
|
|
|
1,019
|
|
|
|
|
|
1,255
|
|
|
|
|
2,052
|
|
Office relocation costs
|
|
|
|
|
155
|
|
|
|
|
-
|
|
|
|
|
|
155
|
|
|
|
|
-
|
|
Non-GAAP net income
|
|
|
|
$
|
3,441
|
|
|
|
$
|
2,006
|
|
|
|
|
$
|
8,343
|
|
|
|
$
|
5,476
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP pro forma diluted weighted average common shares
outstanding (1)
|
|
|
|
|
43,151,239
|
|
|
|
|
39,463,322
|
|
|
|
|
|
43,174,201
|
|
|
|
|
36,240,888
|
|
GAAP pro forma diluted weighted average common shares outstanding (1)
|
|
|
|
|
43,151,239
|
|
|
|
|
37,084,271
|
|
|
|
|
|
43,174,201
|
|
|
|
|
34,373,593
|
|
Non-GAAP net income per diluted share
|
|
|
|
$
|
0.08
|
|
|
|
$
|
0.05
|
|
|
|
|
$
|
0.19
|
|
|
|
$
|
0.15
|
|
GAAP net income (loss) per diluted share
|
|
|
|
$
|
0.02
|
|
|
|
$
|
(0.02
|
)
|
|
|
|
$
|
0.09
|
|
|
|
$
|
(0.08
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For purposes of the pro
forma diluted weighted average common shares outstanding for the period
ended September 30, 2013, all shares of Series A Convertible Preferred
Stock have been treated as though they have converted to Common Shares
on a 1:1 basis as of the beginning of the period because the Series A
Convertible Preferred Stock participate in any net earnings on an equal
basis with Common Stock shareholders.
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