[August 04, 2015] |
|
Demandware Announces Second Quarter 2015 Financial Results
Demandware®,
Inc. (NYSE: DWRE), the industry-leading provider of enterprise cloud
commerce solutions, today announced financial results for its second
quarter ended June 30, 2015.
Second Quarter Highlights
-
Subscription revenue for the second quarter was $44.2 million, a 36%
year over year increase from $32.5 million in the second quarter of
2014
-
295 live customers at June 30, 2015, an increase of 31% from 226 last
year
-
1,316 live sites at June 30, 2015, an increase of 42% from 924 last
year
-
Conducted XChange Customer Conferences in North America and Europe
-
Named Kathleen Patton as Demandware General Counsel
"In the second quarter, we continued to execute our strategy and were
pleased with our operational performance," stated Tom Ebling, Chief
Executive Officer, Demandware. "We were thrilled not only with the
strong momentum of our digital solution, but also with the increased
traction of our predictive email and order management solutions in new
and existing customers. Retailers are increasingly looking for a single
view into both the consumer and across the enterprise organization. With
our strategic moves in 2015, we are well positioned to deliver the
industry's first enterprise unified commerce platform in the cloud."
"Kathleen has served as our Associate General Counsel since 2012. Given
her deep understanding of our company, our clients and our strategy, she
is a great addition to the executive leadership team," continued Mr.
Ebling.
-
Demandware signed significant new customers during the quarter
including At Home Stores, Brookstone, Cortefiel, SA, Design Within
Reach, Furniture Village, The Jewellery Channel, Stonewall Kitchen,
and V&D B.V.
-
Leading retailers such as American Giant, Ganni, John Hardy, Kase
World Wide, L.L.Bean International and Linelux SA launched initial
sites on the Demandware Commerce Cloud.
-
Existing customers like L'Oreal, Perry Ellis, Samsonite, Sandro,
Vestis Retail Group (EMS) and Wolverine Worldwide expanded their
operations on the platform launching additional commerce sites.
"We were pleased that our cloud platform and innovative solutions
empowered our customers to expand their operations and grow their
businesses," stated Tim Adams, Demandware Chief Financial Officer. "In
addition, our investments in sales and marketing continued to
demonstrate results with new large enterprise scale and mid market
customers. Our success increased our average annual contract value (ACV)
for new clients to approximately $540,000 in the second quarter."
Total revenue for the second quarter was $53.9 million, a 47% increase
over $36.7 million in the second quarter of 2014. Our GAAP net loss for
the second quarter of 2015 was $20.0 million, or $(0.56) per share, as
compared to a net loss of $8.5 million, or $(0.25) per share, for the
second quarter of 2014. Non-GAAP net loss for the second quarter of 2015
was $6.2 million, or $(0.17) per share, as compared to non-GAAP net loss
of $53,000, or $(0.00) per share, for the second quarter of 2014.(1)
At June 30, 2015, we had $186.8 million in cash, cash equivalents and
short term investments on the balance sheet, as compared to $243.7
million at December 31, 2014.
(1) Non-GAAP gross margin, non-GAAP subscription
gross margin, non-GAAP operating income (loss), non-GAAP net income
(loss) and non-GAAP net income (loss) per share excludes expenses
related to stock-based compensation, contingent compensation expense
related to acquisitions, amortization of intangible assets related to
acquisitions and the non-cash tax benefit associated with the
acquisition of Tomax in January 2015.
Quarterly Conference Call
To access the call which will take place today at 8:30 a.m. ET, please
dial (866) 318-8620 in the U.S. or +1 (617) 399-5139 internationally.
The Passcode for the call is: 37947284. A live webcast of the call will
also be available on the investor relations section of the company's
website. An audio replay will be available for one week following the
conclusion of the call through August 11, 2015. The replay number is
(888) 286-8010 in the U.S. or +1 (617) 801-6888 internationally. The
Passcode for the replay is: 47592508. The replay will also be available
as a webcast on Demandware's Investor Relations website.
About Demandware
Demandware, the category defining leader of enterprise cloud commerce
solutions, empowers the world's leading retailers to continuously
innovate in our complex, consumer-driven world. Demandware's open cloud
platform provides unique benefits including seamless innovation, the
LINK ecosystem of integrated best-of-breed partners, and community
insight to optimize customer experiences. These advantages enable
Demandware customers to lead their markets and grow faster. For more
information, visit www.demandware.com,
call +1-888-553-9216 or email [email protected].
Forward-looking Statements
This release contains forward-looking statements, including statements
regarding Demandware's future financial performance, market growth, the
demand for Demandware's solutions, and general business conditions. Any
forward-looking statements contained in this press release are based
upon Demandware's historical performance and its current plans,
estimates and expectations and are not a representation that such plans,
estimates, or expectations will be achieved. These forward-looking
statements represent Demandware's expectations as of the date of this
press release. Subsequent events may cause these expectations to change,
and Demandware disclaims any obligation to update the forward-looking
statements in the future. These forward-looking statements are subject
to known and unknown risks and uncertainties that may cause actual
results to differ materially. Important factors that could cause actual
results to differ materially from those in the forward-looking
statements include, but are not limited to, our ability to attract new
customers; the extent to which customers renew their contracts for our
solution; the seasonality of our business; our ability to manage our
growth; the variance of our business from quarter to quarter; the
continued growth of the market for digital commerce software; the timing
and success of solutions offered by our competitors; unpredictable
macro-economic conditions; the loss of any of our key employees; the
length of the sales and implementation cycles for our solutions;
increased demands on our infrastructure and costs associated with
operating as a public company; failure to protect our intellectual
property; changes in current tax or accounting rules; and other risks
and uncertainties. Further information on potential factors that could
affect actual results is included in Demandware's latest Quarterly
Report on Form 10-Q filed with the SEC.
Non-GAAP Financial Measures
Demandware has provided in this release financial information that has
not been prepared in accordance with GAAP. This information includes
non-GAAP gross margin, non-GAAP subscription gross margin, non-GAAP
operating income (loss), non-GAAP net income (loss) and non-GAAP net
income (loss) per share. Demandware uses these non-GAAP financial
measures internally in analyzing its financial results and believes they
are useful to investors, as a supplement to GAAP measures, in evaluating
Demandware's ongoing operational performance. Demandware believes 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 its financial measures with other companies in
Demandware's industry, many of which present similar non-GAAP financial
measures to investors to help investors better understand the ongoing
operating performance of the business. Non-GAAP gross margin, non-GAAP
subscription gross margin, non-GAAP operating income (loss), non-GAAP
net income (loss) and non-GAAP net income (loss) per share exclude
amortization expenses related to stock-based compensation, contingent
compensation expense related to acquisitions, amortization of intangible
assets and the non-cash tax benefit related to our acquisitions.
Stock-based compensation is often difficult to predict and often
excluded by other companies to help investors understand the operational
performance of their business. Non-GAAP financial measures that the
Company uses may differ from measures that other companies may use.
Non-GAAP financial measures should not be considered in isolation from,
or as a substitute for, financial information prepared in accordance
with GAAP. Investors are encouraged to review the reconciliation of
these non-GAAP measures to their most directly comparable GAAP financial
measure. A reconciliation of GAAP to the non-GAAP financial measures has
been provided in the tables included as part of this press release.
|
Demandware, Inc.
|
Condensed Consolidated Balance Sheets
|
(unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2015
|
|
|
December 31, 2014
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
118,160
|
|
|
|
$
|
158,827
|
|
Short-term investments
|
|
|
|
|
68,598
|
|
|
|
|
84,880
|
|
Accounts receivable, net of allowance for doubtful accounts
|
|
|
|
|
44,234
|
|
|
|
|
42,441
|
|
Prepaid expenses and other current assets
|
|
|
|
|
10,526
|
|
|
|
|
8,564
|
|
Total current assets
|
|
|
|
|
241,518
|
|
|
|
|
294,712
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
|
24,929
|
|
|
|
|
14,028
|
|
Intangible assets, net
|
|
|
|
|
24,290
|
|
|
|
|
10,266
|
|
Goodwill
|
|
|
|
|
60,034
|
|
|
|
|
24,379
|
|
Other assets
|
|
|
|
|
2,671
|
|
|
|
|
1,785
|
|
Total assets
|
|
|
|
$
|
353,442
|
|
|
|
$
|
345,170
|
|
|
|
|
|
|
|
|
|
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
3,213
|
|
|
|
$
|
3,581
|
|
Accrued expenses
|
|
|
|
|
25,557
|
|
|
|
|
24,871
|
|
Deferred revenue
|
|
|
|
|
26,693
|
|
|
|
|
22,799
|
|
Other current liabilities
|
|
|
|
|
3,662
|
|
|
|
|
282
|
|
Total current liabilities
|
|
|
|
|
59,125
|
|
|
|
|
51,533
|
|
|
|
|
|
|
|
|
|
Long-term liabilities:
|
|
|
|
|
|
|
|
Deferred revenue
|
|
|
|
|
14,265
|
|
|
|
|
12,168
|
|
Other long-term liabilities
|
|
|
|
|
2,567
|
|
|
|
|
1,424
|
|
Total liabilities
|
|
|
|
|
75,957
|
|
|
|
|
65,125
|
|
|
|
|
|
|
|
|
|
Redeemable noncontrolling interest
|
|
|
|
|
663
|
|
|
|
|
823
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
|
359
|
|
|
|
|
353
|
|
Additional paid-in capital
|
|
|
|
|
415,013
|
|
|
|
|
391,896
|
|
Treasury stock, at cost
|
|
|
|
|
(137
|
)
|
|
|
|
(137
|
)
|
Accumulated other comprehensive loss
|
|
|
|
|
(632
|
)
|
|
|
|
(352
|
)
|
Accumulated deficit
|
|
|
|
|
(137,781
|
)
|
|
|
|
(112,538
|
)
|
Total stockholders' equity
|
|
|
|
|
276,822
|
|
|
|
|
279,222
|
|
Total liabilities, redeemable noncontrolling interest and
stockholders' equity
|
|
|
|
$
|
353,442
|
|
|
|
$
|
345,170
|
|
|
Demandware, Inc.
|
Condensed Consolidated Statements of Operations
|
(unaudited; in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Subscription
|
|
|
|
$
|
44,174
|
|
|
$
|
32,505
|
|
|
|
$
|
87,422
|
|
|
$
|
62,410
|
|
Services and other
|
|
|
|
|
9,684
|
|
|
|
4,241
|
|
|
|
|
16,712
|
|
|
|
6,910
|
|
Total revenue
|
|
|
|
|
53,858
|
|
|
|
36,746
|
|
|
|
|
104,134
|
|
|
|
69,320
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Subscription
|
|
|
|
|
9,712
|
|
|
|
6,266
|
|
|
|
|
18,585
|
|
|
|
11,700
|
|
Services and other
|
|
|
|
|
6,575
|
|
|
|
3,739
|
|
|
|
|
12,745
|
|
|
|
7,213
|
|
Total cost of revenue
|
|
|
|
|
16,287
|
|
|
|
10,005
|
|
|
|
|
31,330
|
|
|
|
18,913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
|
37,571
|
|
|
|
26,741
|
|
|
|
|
72,804
|
|
|
|
50,407
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
|
|
|
29,026
|
|
|
|
17,621
|
|
|
|
|
50,335
|
|
|
|
34,104
|
|
Research and development
|
|
|
|
|
16,504
|
|
|
|
8,040
|
|
|
|
|
30,187
|
|
|
|
15,011
|
|
General and administrative
|
|
|
|
|
12,191
|
|
|
|
9,444
|
|
|
|
|
23,595
|
|
|
|
17,756
|
|
Total operating expenses
|
|
|
|
|
57,721
|
|
|
|
35,105
|
|
|
|
|
104,117
|
|
|
|
66,871
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
|
|
|
(20,150
|
)
|
|
|
(8,364
|
)
|
|
|
|
(31,313
|
)
|
|
|
(16,464
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income:
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
|
92
|
|
|
|
75
|
|
|
|
|
191
|
|
|
|
141
|
|
Interest expense
|
|
|
|
|
-
|
|
|
|
(30
|
)
|
|
|
|
-
|
|
|
|
(83
|
)
|
Other income
|
|
|
|
|
90
|
|
|
|
22
|
|
|
|
|
279
|
|
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net
|
|
|
|
|
182
|
|
|
|
67
|
|
|
|
|
470
|
|
|
|
69
|
|
Loss before income taxes
|
|
|
|
|
(19,968
|
)
|
|
|
(8,297
|
)
|
|
|
|
(30,843
|
)
|
|
|
(16,395
|
)
|
Income tax provision (benefit)
|
|
|
|
|
139
|
|
|
|
227
|
|
|
|
|
(5,456
|
)
|
|
|
492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
$
|
(20,107
|
)
|
|
$
|
(8,524
|
)
|
|
|
$
|
(25,387
|
)
|
|
$
|
(16,887
|
)
|
Net loss attributable to noncontrolling interest
|
|
|
|
|
(86
|
)
|
|
|
-
|
|
|
|
|
(144
|
)
|
|
|
-
|
|
Net loss attributable to Demandware
|
|
|
|
$
|
(20,021
|
)
|
|
$
|
(8,524
|
)
|
|
|
$
|
(25,243
|
)
|
|
$
|
(16,887
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share attributable to Demandware, basic and dilutive
|
|
|
|
$
|
(0.56
|
)
|
|
$
|
(0.25
|
)
|
|
|
$
|
(0.71
|
)
|
|
$
|
(0.49
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding, basic and dilutive
|
|
|
|
|
35,718
|
|
|
|
34,712
|
|
|
|
|
35,540
|
|
|
|
34,562
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demandware, Inc.
|
Condensed Consolidated Statements of Cash Flows
|
(unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
$
|
(20,107
|
)
|
|
|
$
|
(8,524
|
)
|
|
|
|
$
|
(25,387
|
)
|
|
|
$
|
(16,887
|
)
|
Adjustments to reconcile net loss to net cash (used in) provided by
operating activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
3,034
|
|
|
|
|
1,645
|
|
|
|
|
|
5,772
|
|
|
|
|
2,943
|
|
Consulting expense settled with a restricted stock unit award
|
|
|
|
|
269
|
|
|
|
|
77
|
|
|
|
|
|
555
|
|
|
|
|
77
|
|
Bad debt expense
|
|
|
|
|
174
|
|
|
|
|
-
|
|
|
|
|
|
571
|
|
|
|
|
269
|
|
Stock-based compensation
|
|
|
|
|
9,730
|
|
|
|
|
7,334
|
|
|
|
|
|
16,786
|
|
|
|
|
13,001
|
|
Deferred income taxes
|
|
|
|
|
(170
|
)
|
|
|
|
-
|
|
|
|
|
|
(5,977
|
)
|
|
|
|
-
|
|
Amortization of premium on marketable securities
|
|
|
|
|
101
|
|
|
|
|
226
|
|
|
|
|
|
202
|
|
|
|
|
356
|
|
Other non-cash reconciling items
|
|
|
|
|
(35
|
)
|
|
|
|
64
|
|
|
|
|
|
60
|
|
|
|
|
43
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
(4,580
|
)
|
|
|
|
(1,603
|
)
|
|
|
|
|
7,082
|
|
|
|
|
3,802
|
|
Prepaid expenses and other current assets
|
|
|
|
|
963
|
|
|
|
|
563
|
|
|
|
|
|
(773
|
)
|
|
|
|
(5,284
|
)
|
Other long term assets and liabilities
|
|
|
|
|
1,832
|
|
|
|
|
1,146
|
|
|
|
|
|
3,341
|
|
|
|
|
(2,205
|
)
|
Accounts payable
|
|
|
|
|
823
|
|
|
|
|
735
|
|
|
|
|
|
130
|
|
|
|
|
285
|
|
Accrued expenses
|
|
|
|
|
7,202
|
|
|
|
|
(955
|
)
|
|
|
|
|
(2,011
|
)
|
|
|
|
(2,473
|
)
|
Deferred revenue
|
|
|
|
|
572
|
|
|
|
|
1,267
|
|
|
|
|
|
1,403
|
|
|
|
|
1,823
|
|
Net cash (used in) provided by operating activities
|
|
|
|
|
(192
|
)
|
|
|
|
1,975
|
|
|
|
|
|
1,754
|
|
|
|
|
(4,250
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
|
|
(6,482
|
)
|
|
|
|
(1,898
|
)
|
|
|
|
|
(13,291
|
)
|
|
|
|
(8,283
|
)
|
Purchase of marketable securities
|
|
|
|
|
(26,562
|
)
|
|
|
|
(45,372
|
)
|
|
|
|
|
(51,131
|
)
|
|
|
|
(82,275
|
)
|
Sale and maturity of marketable securities
|
|
|
|
|
38,294
|
|
|
|
|
13,725
|
|
|
|
|
|
71,486
|
|
|
|
|
30,950
|
|
Acquisition, net of cash acquired
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
(54,733
|
)
|
|
|
|
(12,136
|
)
|
Net cash provided by (used in) investing activities
|
|
|
|
|
5,250
|
|
|
|
|
(33,545
|
)
|
|
|
|
|
(47,669
|
)
|
|
|
|
(71,744
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares purchased under Employee Stock Purchase Plan
|
|
|
|
|
803
|
|
|
|
|
643
|
|
|
|
|
|
803
|
|
|
|
|
643
|
|
Proceeds from exercise of stock options
|
|
|
|
|
2,803
|
|
|
|
|
1,368
|
|
|
|
|
|
4,980
|
|
|
|
|
4,716
|
|
Payments of equipment notes
|
|
|
|
|
-
|
|
|
|
|
(611
|
)
|
|
|
|
|
-
|
|
|
|
|
(1,221
|
)
|
Payments of software financing agreement
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
(766
|
)
|
Net cash provided by financing activities
|
|
|
|
|
3,606
|
|
|
|
|
1,400
|
|
|
|
|
|
5,783
|
|
|
|
|
3,372
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS
|
|
|
|
|
196
|
|
|
|
|
(11
|
)
|
|
|
|
|
(535
|
)
|
|
|
|
(4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
|
|
|
8,860
|
|
|
|
|
(30,181
|
)
|
|
|
|
|
(40,667
|
)
|
|
|
|
(72,626
|
)
|
CASH AND CASH EQUIVALENTS - Beginning of period
|
|
|
|
|
109,300
|
|
|
|
|
199,980
|
|
|
|
|
|
158,827
|
|
|
|
|
242,425
|
|
CASH AND CASH EQUIVALENTS - End of period
|
|
|
|
$
|
118,160
|
|
|
|
$
|
169,799
|
|
|
|
|
$
|
118,160
|
|
|
|
$
|
169,799
|
|
Demandware, Inc.
|
Stock Based Compensation Expense
|
(unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
Cost of subscription revenue
|
|
|
|
$
|
267
|
|
|
|
$
|
167
|
|
|
|
$
|
490
|
|
|
|
$
|
300
|
Cost of services revenue
|
|
|
|
|
885
|
|
|
|
|
516
|
|
|
|
|
1,512
|
|
|
|
|
909
|
Sales and marketing
|
|
|
|
|
2,990
|
|
|
|
|
1,974
|
|
|
|
|
5,257
|
|
|
|
|
3,467
|
Research and development
|
|
|
|
|
3,032
|
|
|
|
|
1,795
|
|
|
|
|
4,899
|
|
|
|
|
3,331
|
General and administration
|
|
|
|
|
2,556
|
|
|
|
|
2,882
|
|
|
|
|
4,628
|
|
|
|
|
4,994
|
|
|
|
|
$
|
9,730
|
|
|
|
$
|
7,334
|
|
|
|
$
|
16,786
|
|
|
|
$
|
13,001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demandware, Inc.
|
Contingent Compensation Expense Related to Acquisitions
|
(unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
Sales and marketing
|
|
|
|
$
|
1,137
|
|
|
|
$
|
436
|
|
|
|
$
|
2,181
|
|
|
|
$
|
762
|
Research and development
|
|
|
|
|
1,911
|
|
|
|
|
436
|
|
|
|
|
3,638
|
|
|
|
|
762
|
|
|
|
|
$
|
3,048
|
|
|
|
$
|
872
|
|
|
|
$
|
5,819
|
|
|
|
$
|
1,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demandware, Inc.
|
Amortization Expense Related to Acquired Intangible Assets
|
(unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
Cost of subscription revenue
|
|
|
|
$
|
1,102
|
|
|
|
$
|
228
|
|
|
|
$
|
2,154
|
|
|
|
$
|
402
|
Sales and marketing
|
|
|
|
|
123
|
|
|
|
|
37
|
|
|
|
|
222
|
|
|
|
|
74
|
|
|
|
|
$
|
1,225
|
|
|
|
$
|
265
|
|
|
|
$
|
2,376
|
|
|
|
$
|
476
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demandware, Inc.
|
Non-Cash Taxes
|
(unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
Non-cash tax (benefit)
|
|
|
|
$
|
(215
|
)
|
|
|
$
|
-
|
|
|
|
$
|
(6,088
|
)
|
|
|
$
|
-
|
Demandware, Inc.
|
Reconciliation of Non-GAAP Financial Measures to Comparable
GAAP Measures
|
(unaudited; in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
Reconciliation between GAAP operating (loss) and non-GAAP
operating (loss) income:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating (loss)
|
|
|
|
$
|
(20,150
|
)
|
|
$
|
(8,364
|
)
|
|
|
$
|
(31,313
|
)
|
|
$
|
(16,464
|
)
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
|
|
9,730
|
|
|
|
7,334
|
|
|
|
|
16,786
|
|
|
|
13,001
|
|
Contingent compensation expense related to acquisitions
|
|
|
|
|
3,048
|
|
|
|
872
|
|
|
|
|
5,819
|
|
|
|
1,524
|
|
Amortization expense related to acquired intangible assets
|
|
|
|
|
1,225
|
|
|
|
265
|
|
|
|
|
2,376
|
|
|
|
476
|
|
Non-GAAP operating (loss) income
|
|
|
|
|
(6,147
|
)
|
|
|
107
|
|
|
|
|
(6,332
|
)
|
|
|
(1,463
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Numerator:
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation between GAAP net loss attributable to Demandware
and non-GAAP net loss:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss attributable to Demandware
|
|
|
|
$
|
(20,021
|
)
|
|
$
|
(8,524
|
)
|
|
|
$
|
(25,243
|
)
|
|
$
|
(16,887
|
)
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
|
|
9,730
|
|
|
|
7,334
|
|
|
|
|
16,786
|
|
|
|
13,001
|
|
Contingent compensation expense related to acquisitions
|
|
|
|
|
3,048
|
|
|
|
872
|
|
|
|
|
5,819
|
|
|
|
1,524
|
|
Amortization expense related to acquired intangible assets
|
|
|
|
|
1,225
|
|
|
|
265
|
|
|
|
|
2,376
|
|
|
|
476
|
|
Non-cash tax (benefit) (1)
|
|
|
|
|
(215
|
)
|
|
|
-
|
|
|
|
|
(6,088
|
)
|
|
|
-
|
|
Non-GAAP net loss
|
|
|
|
|
(6,233
|
)
|
|
|
(53
|
)
|
|
|
|
(6,350
|
)
|
|
|
(1,886
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) In the first and second quarter of 2015, Demandware recorded a
non-cash tax benefit associated with the acquisition of Tomax.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP and Non-GAAP weighted average common shares outstanding, basic
and dilutive
|
|
|
|
|
35,718
|
|
|
|
34,712
|
|
|
|
|
35,540
|
|
|
|
34,562
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net loss per share, basic and diluted:
|
|
|
|
$
|
(0.17
|
)
|
|
$
|
(0.00
|
)
|
|
|
$
|
(0.18
|
)
|
|
$
|
(0.05
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation between GAAP subscription gross margin and
non-GAAP subscription gross margin:
|
|
|
|
|
|
|
|
|
|
|
|
Subscription revenue
|
|
|
|
$
|
44,174
|
|
|
$
|
32,505
|
|
|
|
$
|
87,422
|
|
|
$
|
62,410
|
|
Cost of subscription revenue
|
|
|
|
|
9,712
|
|
|
|
6,266
|
|
|
|
|
18,585
|
|
|
|
11,700
|
|
Subscription gross profit
|
|
|
|
|
34,462
|
|
|
|
26,239
|
|
|
|
|
68,837
|
|
|
|
50,710
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation allocated to cost of subscription revenue
|
|
|
|
|
267
|
|
|
|
167
|
|
|
|
|
490
|
|
|
|
300
|
|
Amortization expense related to acquired intangible assets allocated
to cost of subscription revenue
|
|
|
|
|
1,102
|
|
|
|
228
|
|
|
|
|
2,154
|
|
|
|
402
|
|
Non-GAAP Subscription Gross Profit
|
|
|
|
|
35,831
|
|
|
|
26,634
|
|
|
|
|
71,481
|
|
|
|
51,412
|
|
Non-GAAP Subscription Gross Margin
|
|
|
|
81%
|
|
82%
|
|
|
82%
|
|
82%
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation between GAAP total gross margin and non-GAAP total
gross margin:
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
|
|
$
|
53,858
|
|
|
$
|
36,746
|
|
|
|
$
|
104,134
|
|
|
$
|
69,320
|
|
Total cost of revenue
|
|
|
|
|
16,287
|
|
|
|
10,005
|
|
|
|
|
31,330
|
|
|
|
18,913
|
|
Gross profit
|
|
|
|
|
37,571
|
|
|
|
26,741
|
|
|
|
|
72,804
|
|
|
|
50,407
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation allocated to cost of revenue
|
|
|
|
|
1,152
|
|
|
|
683
|
|
|
|
|
2,002
|
|
|
|
1,209
|
|
Amortization expense related to acquired intangible assets allocated
to cost of revenue
|
|
|
|
|
1,102
|
|
|
|
228
|
|
|
|
|
2,154
|
|
|
|
402
|
|
Non-GAAP Total Gross Profit
|
|
|
|
|
39,825
|
|
|
|
27,652
|
|
|
|
|
76,960
|
|
|
|
52,018
|
|
Non-GAAP Total Gross Margin
|
|
|
|
74%
|
|
75%
|
|
|
74%
|
|
75%
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150804005613/en/
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