[November 05, 2015] |
|
New Relic Announces Second Quarter of Fiscal Year 2016 Results
Software analytics company New Relic, Inc. (NYSE: NEWR) today announced
financial results for the second fiscal quarter ended September 30, 2015.
"We have seen continued strong adoption of the New Relic Software
Analytics Cloud from organizations of all sizes who want real-time
insights about their app performance, customer experience and business
success," said Lew Cirne, CEO and founder, New Relic. "And, next week at
FutureStack15, we expect to bring together more than 1,000 of the
world's leading developers, IT experts, and technologists who are
changing the world through software."
Second Quarter Fiscal 2016 Financial Highlights:
-
Revenue of $42.9 million, up 69% compared with the second quarter of
fiscal 2015 and 13% from the first quarter of fiscal 2016.
-
GAAP loss from operations was $15.0 million for the second quarter of
fiscal 2016, compared with GAAP loss from operations of $9.3 million
for the second quarter of fiscal 2015. Non-GAAP loss from operations
was $8.4 million for the second quarter of fiscal 2016, compared with
non-GAAP loss from operations of $6.4 million for the second quarter
of fiscal 2015.
-
GAAP net loss per share was $0.31 for the second quarter of fiscal
2016 based on 48.2 million weighted-average shares outstanding,
compared with GAAP net loss per share of $0.58 for the second quarter
of fiscal 2015 based on 15.9 million weighted-average shares
outstanding. Non-GAAP net loss per share was $0.17 for the second
quarter of fiscal 2016 based on 48.2 million non-GAAP weighted-average
shares outstanding, compared with non-GAAP net loss per share of $0.15
for the second quarter of fiscal 2015 based on 40.7 million non-GAAP
weighted-average shares outstanding.
-
Cash, cash equivalents and short-term investments were $189.0 million
at the end of the second quarter of fiscal 2016, compared with $195.0
million at the end of the first quarter of fiscal 2016.
Customer Highlights:
-
As of September 30, 2015, total Paid Business Accounts were 12,840.
-
Dollar-Based Net Expansion Rate for the quarter ended September 30,
2015 was 121%.
-
New customers in the quarter included: Acxiom Corporation,
FastCompany, Game Retail Ltd, KBM Group, Latina Media Ventures,
Miami-Dade County Public Schools, MovieStarPlanet, Nu Skin
Enterprises, Total Wine & More, TrueCar, Trustpower Limited and
Yesmail.
-
Expanded customer relationships in the quarter included: Airbnb,
Appirio, BrainTree, GameStop, MercadoLibre, Inc., MLB Advanced Media,
Mulesoft, Petco, Reel Feed, Revionics, RTL Nederland, Salesforce,
Schibsted Centralen AB, Surfline, Tabcorp Holdings Limited and zulily.
Second Quarter & Recent Business Highlights:
-
Acquired Opsmatic, Inc., a San Francisco-based startup focused on
live-state infrastructure monitoring for modern DevOps teams.
-
Announced new features to specifically monitor development,
pre-production and production application health and performance on Amazon
Web Services (AWS) Elastic Cloud Compute (EC2), as well as the
achievement of AWS Partner Network Mobile Competency.
-
Expanded our partnership
with Magento, to deliver critical performance analytics for
retailers.
-
Announced Leadership Changes:
-
Named
Jim Gochee to the newly created position of Chief Product
Officer, responsible for the product, engineering and site
operation teams.
-
Promoted
Hilarie Koplow-McAdams to President, responsible for managing
the company's complete go-to-market strategy.
-
Welcomed Robson Grieve to the company as Chief Marketing Officer
to lead the company's marketing strategy.
Outlook:
New Relic is initiating its outlook for its third quarter of fiscal
2016, as well as updating guidance for the full fiscal year 2016.
-
Third Quarter Fiscal 2016 Outlook:
-
Revenue between $45.0 million and $46.0 million, representing
year-over-year growth of between 55% and 58%.
-
Non-GAAP loss from operations of between $14.0 million and $15.0
million.
-
Non-GAAP net loss per share of between $0.29 and $0.31. This
assumes 48.9 million non-GAAP weighted average common shares
outstanding.
-
Full Year Fiscal 2016 Outlook:
-
Revenue between $174 million and $176 million, representing
year-over-year growth of between 58% and 59%.
-
Non-GAAP loss from operations of between $44.0 million and $46.0
million.
-
Non-GAAP net loss per share of between $0.90 and $0.94. This
assumes 48.9 million non-GAAP weighted average common shares
outstanding.
Conference Call Details:
-
What: New Relic financial results for the second quarter of
fiscal year 2016 and outlook for the third quarter of fiscal 2016 and
the full year of fiscal 2016.
-
When: November 5, 2015 at 2:00 P.M. Pacific Time (5:00 P.M.
Eastern Time).
-
Dial in: To access the call in the U.S., please dial (877)
201-0168, and for international callers, please dial (647) 788-4901.
Callers may provide confirmation number 51431392 to access the call
more quickly, and are encouraged to dial into the call 10 to 15
minutes prior to the start to prevent any delay in joining.
-
Webcast: http://ir.newrelic.com
(live and replay).
-
Replay: Following the completion of the call through 11:59 PM
Eastern Time on November 12, 2015, a telephone replay will be
available by dialing (855) 859-2056 from the United States or (404)
537-3406 internationally with conference ID 51431392.
About New Relic
New Relic is a software analytics company that delivers real-time
insights to more than 500,000 users and 12,000 paid business accounts.
As a multi-tenant SaaS platform, the New Relic Software Analytics Cloud
helps companies securely monitor their production software in virtually
any environment, without having to build or maintain dedicated
infrastructure. New Relic helps companies improve application
performance, create delightful customer experiences, and realize
business success. Learn more at newrelic.com.
Forward-Looking Statements
This press release and the earnings call referencing this press release
contain "forward-looking" statements, as that term is defined under the
federal securities laws, including but not limited to statements
regarding New Relic's future financial performance, including its
outlook on financial results for the third quarter of fiscal year 2016
and for the full fiscal year 2016, market trends and opportunity,
customer adoption and momentum of New Relic's products, competitive
advantages, potential growth, benefits of collaborative efforts, New
Relic's ability to execute on its vision, participation by executives on
future earnings calls, benefits of management changes, benefits of the
acquisition of Opsmatic to New Relic and its customers, and attendance,
events, announcements and insights at FutureStack15 and its
corresponding Analyst Day. These forward-looking statements are based on
New Relic's current assumptions, expectations and beliefs and are
subject to substantial risks, uncertainties, assumptions and changes in
circumstances that may cause New Relic's actual results, performance or
achievements to differ materially from those expressed or implied in any
forward-looking statement.
The risks and uncertainties referred to above include, but are not
limited to, New Relic's ability to generate sufficient revenue to
achieve and sustain profitability, particularly in light of its
significant ongoing expenses; New Relic's short operating history in an
evolving industry; New Relic's ability to manage its significant recent
growth; fluctuation of New Relic's quarterly results; the development of
the overall market for SaaS business software; the dependence of New
Relic's business on its customers purchasing additional subscriptions
and products from it and renewing their subscriptions; New Relic's
ability to develop enhancements to its products, increase adoption and
usage of its products and introduce new products that achieve market
acceptance; New Relic's ability to persuade New Relic's customers to
expand their use of New Relic's products to additional use cases; New
Relic's ability to determine optimal prices for its products; New
Relic's ability to expand its marketing and sales capabilities and
increase sales of its solutions to large enterprises while mitigating
the risks associated with serving such customers; privacy concerns,
which could result in additional cost and liability to New Relic or
inhibit sales; changes in privacy laws, regulations and standards; New
Relic's ability to effectively compete in the intensely competitive
market for application performance monitoring solutions and respond
effectively to rapidly changing technology, evolving industry standards
and changing customer needs, requirements or preferences; New Relic's
dependence on lead generation strategies to drive sales and revenue;
interruptions or performance problems associated with New Relic's
technology and infrastructure; defects or disruptions in New Relic's
products; the expense and complexity of New Relic's ongoing and planned
investments in data center hosting facilities; risks associated with
international operations; New Relic's ability to protect its
intellectual property rights; and other "Risk Factors" set forth in New
Relic's most recent filings with the Securities and Exchange Commission
(the "SEC").
Further information on these and other factors that could affect New
Relic's financial results and the forward-looking statements in this
press release is included in the filings we make with the SEC from time
to time, particularly under the captions "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and Results
of Operations," including the Quarterly Report on Form 10-Q for the
fiscal quarter ended June 30, 2015. Copies of these documents may be
obtained by visiting New Relic's Investor Relations website at
http://ir.newrelic.com or the SEC's website at www.sec.gov.
New Relic assumes no obligation and does not intend to update these
forward-looking statements, except as required by law.
Non-GAAP Financial Measures
New Relic discloses the following non-GAAP financial measures in this
release and the earnings call referencing this press release: non-GAAP
loss from operations, non-GAAP net loss, non-GAAP gross profit, non-GAAP
gross margin, non-GAAP operating margin, non-GAAP sales and marketing,
non-GAAP research and development, non-GAAP general and administrative
and non-GAAP weighted average shares used to compute net loss per share
attributable to common stockholders. New Relic 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 its ongoing operational performance. New Relic 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.
Non-GAAP financial measures should not be considered in isolation from,
or as a substitute for, financial information prepared in accordance
with GAAP. A reconciliation of the historical non-GAAP financial
measures to their most directly comparable GAAP measures has been
provided in the financial statement tables included below in this press
release. Investors are encouraged to review the reconciliation of these
historical non-GAAP financial measures to their most directly comparable
GAAP financial measures.
New Relic defines non-GAAP gross profit, non-GAAP sales and marketing,
non-GAAP research and development, non-GAAP general and administrative,
non-GAAP operating loss and non-GAAP net loss as the respective GAAP
balances, adjusted for: (1) stock-based compensation, (2) amortization
of stock-based compensation capitalized in software development costs,
(3) the amortization of purchased intangibles, (4) lawsuit litigation,
(5) the transaction costs related to acquisition and (6) employer
payroll tax on equity incentive plans. New Relic excludes employer
payroll tax expense on equity incentive plans as these expenses are tied
to the exercise or vesting of underlying equity awards and the price of
New Relic's common stock at the time of vesting or exercise. As a
result, these taxes may vary in any particular period independent of the
financial and operating performance of New Relic's business. Non-GAAP
net loss per share is calculated as non-GAAP net loss divided by the
non-GAAP weighted average shares used to compute net loss per share
attributable to common stockholders that are adjusted to assume the
conversion of outstanding preferred shares to common shares as of the
beginning of the period.
With respect to New Relic's outlook under "Outlook" above, New Relic has
not reconciled its expectations as to non-GAAP operating loss to GAAP
loss from operations or non-GAAP net loss per share to GAAP net loss per
share because certain items such as stock-based compensation, lawsuit
litigation expenses and employer payroll taxes on equity incentive plans
are out of New Relic's control or cannot be reasonably predicted.
Accordingly, reconciliation is not available without unreasonable effort.
Operating Metrics
New Relic's dollar-based net expansion rate compares its recurring
subscription revenue from customers from one period to the next. It is
increased when customers increase their use of New Relic's products, use
additional products, or upgrade to a higher subscription tier. New
Relic's dollar-based net expansion rate is reduced when customers
decrease their use of New Relic's products, use fewer products, or
downgrade to a lower subscription tier.
New Relic is a registered trademark of New Relic, Inc.
All product and company names herein may be trademarks of their
registered owners.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Operations
|
(In thousands, except per share data; unaudited)
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
Six Months Ended September 30,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
$
|
42,928
|
|
|
|
$
|
25,361
|
|
|
|
|
|
$
|
81,073
|
|
|
|
$
|
47,974
|
|
Cost of revenue
|
|
|
|
|
8,952
|
|
|
|
|
5,029
|
|
|
|
|
|
|
16,818
|
|
|
|
|
9,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
|
33,976
|
|
|
|
|
20,332
|
|
|
|
|
|
|
64,255
|
|
|
|
|
38,913
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
|
|
10,616
|
|
|
|
|
5,336
|
|
|
|
|
|
|
19,370
|
|
|
|
|
10,248
|
|
Sales and marketing
|
|
|
|
|
29,365
|
|
|
|
|
19,019
|
|
|
|
|
|
|
58,048
|
|
|
|
|
37,635
|
|
General and administrative
|
|
|
|
|
8,960
|
|
|
|
|
5,249
|
|
|
|
|
|
|
16,944
|
|
|
|
|
10,609
|
|
Total operating expenses
|
|
|
|
|
48,941
|
|
|
|
|
29,604
|
|
|
|
|
|
|
94,362
|
|
|
|
|
58,492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
|
|
|
(14,965
|
)
|
|
|
|
(9,272
|
)
|
|
|
|
|
|
(30,107
|
)
|
|
|
|
(19,579
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
|
149
|
|
|
|
|
7
|
|
|
|
|
|
|
290
|
|
|
|
|
12
|
|
Interest expense
|
|
|
|
|
(13
|
)
|
|
|
|
(14
|
)
|
|
|
|
|
|
(27
|
)
|
|
|
|
(29
|
)
|
Other income (expense), net
|
|
|
|
|
(31
|
)
|
|
|
|
67
|
|
|
|
|
|
|
(33
|
)
|
|
|
|
201
|
|
Loss before income taxes
|
|
|
|
|
(14,860
|
)
|
|
|
|
(9,212
|
)
|
|
|
|
|
|
(29,877
|
)
|
|
|
|
(19,395
|
)
|
Income tax provision (benefit)
|
|
|
|
|
(41
|
)
|
|
|
|
-
|
|
|
|
|
|
|
61
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
$
|
(14,819
|
)
|
|
|
$
|
(9,212
|
)
|
|
|
|
|
$
|
(29,938
|
)
|
|
|
$
|
(19,395
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share attributable to common stockholders, basic and
diluted
|
|
|
|
$
|
(0.31
|
)
|
|
|
$
|
(0.58
|
)
|
|
|
|
|
$
|
(0.63
|
)
|
|
|
$
|
(1.22
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used to compute net loss per share
attributable to common stockholders, basic and diluted
|
|
|
|
|
48,150
|
|
|
|
|
15,929
|
|
|
|
|
|
|
47,523
|
|
|
|
|
15,917
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Balance Sheets
|
(In thousands, except par value; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
|
March 31,
|
|
|
|
|
2015
|
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
68,796
|
|
|
|
|
$
|
105,257
|
|
Short-term investments
|
|
|
|
|
120,225
|
|
|
|
|
|
95,503
|
|
Accounts receivable, net of allowance for doubtful accounts of
$422 and $282, respectively
|
|
|
|
|
20,684
|
|
|
|
|
|
13,813
|
|
Prepaid expenses and other current assets
|
|
|
|
|
8,273
|
|
|
|
|
|
4,299
|
|
Total current assets
|
|
|
|
|
217,978
|
|
|
|
|
|
218,872
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
|
40,621
|
|
|
|
|
|
35,397
|
|
Restricted cash
|
|
|
|
|
8,023
|
|
|
|
|
|
4,623
|
|
Goodwill
|
|
|
|
|
2,053
|
|
|
|
|
|
2,053
|
|
Intangible assets, net
|
|
|
|
|
1,802
|
|
|
|
|
|
2,300
|
|
Other assets, non-current
|
|
|
|
|
1,638
|
|
|
|
|
|
1,466
|
|
Total assets
|
|
|
|
$
|
272,115
|
|
|
|
|
$
|
264,711
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders' equity
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
5,584
|
|
|
|
|
$
|
4,969
|
|
Accrued compensation and benefits
|
|
|
|
|
7,483
|
|
|
|
|
|
6,288
|
|
Other current liabilities
|
|
|
|
|
5,165
|
|
|
|
|
|
3,623
|
|
Deferred revenue
|
|
|
|
|
42,041
|
|
|
|
|
|
29,185
|
|
Total current liabilities
|
|
|
|
|
60,273
|
|
|
|
|
|
44,065
|
|
|
|
|
|
|
|
|
|
|
Deferred rent, non-current
|
|
|
|
|
4,775
|
|
|
|
|
|
4,638
|
|
Deferred revenue, non-current
|
|
|
|
|
3,344
|
|
|
|
|
|
124
|
|
Other liabilities, non-current
|
|
|
|
|
708
|
|
|
|
|
|
1,014
|
|
Total liabilities
|
|
|
|
|
69,100
|
|
|
|
|
|
49,841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
Common stock, $0.001 par value
|
|
|
|
|
49
|
|
|
|
|
|
47
|
|
Treasury stock - at cost (260 shares)
|
|
|
|
|
(263
|
)
|
|
|
|
|
(263
|
)
|
Additional paid-in capital
|
|
|
|
|
364,725
|
|
|
|
|
|
346,671
|
|
Accumulated other comprehensive income
|
|
|
|
|
42
|
|
|
|
|
|
15
|
|
Accumulated deficit
|
|
|
|
|
(161,538
|
)
|
|
|
|
|
(131,600
|
)
|
Total stockholders' equity
|
|
|
|
|
203,015
|
|
|
|
|
|
214,870
|
|
Total liabilities and stockholders' equity
|
|
|
|
$
|
272,115
|
|
|
|
|
$
|
264,711
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
(In thousands; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended September 30,
|
|
|
|
|
|
|
|
2015
|
|
|
|
2014
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
Net loss:
|
|
|
|
|
$
|
(29,938
|
)
|
|
$
|
(19,395
|
)
|
Adjustments to reconcile net loss to net cash used
|
|
|
|
|
|
|
in operating activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
7,017
|
|
|
|
3,490
|
|
Stock-based compensation expense
|
|
|
|
|
10,247
|
|
|
|
4,166
|
|
Other
|
|
|
|
|
700
|
|
|
|
(89
|
)
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
(7,166
|
)
|
|
|
(3,397
|
)
|
Prepaid expenses and other assets
|
|
|
|
|
(3,809
|
)
|
|
|
(3,495
|
)
|
Accounts payable
|
|
|
|
|
133
|
|
|
|
(572
|
)
|
Accrued compensation and benefits and other liabilities
|
|
|
|
|
2,454
|
|
|
|
717
|
|
Deferred rent
|
|
|
|
|
157
|
|
|
|
30
|
|
Deferred revenue
|
|
|
|
|
16,076
|
|
|
|
5,371
|
|
Net cash used in operating activities
|
|
|
|
|
(4,129
|
)
|
|
|
(13,174
|
)
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
|
|
(6,608
|
)
|
|
|
(5,739
|
)
|
Down payment for property and equipment
|
|
|
|
|
-
|
|
|
|
(180
|
)
|
Increase in restricted cash
|
|
|
|
|
(3,400
|
)
|
|
|
(27
|
)
|
Purchases of short-term investments
|
|
|
|
|
(53,422
|
)
|
|
|
-
|
|
Proceeds from sale and maturity of short-term investments
|
|
|
|
|
28,350
|
|
|
|
-
|
|
Capitalized software development costs
|
|
|
|
|
(4,096
|
)
|
|
|
(4,443
|
)
|
Net cash used in investing activities
|
|
|
|
|
(39,176
|
)
|
|
|
(10,389
|
)
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
Proceeds from issuances of preferred stock, net of issuance costs
|
|
|
|
|
-
|
|
|
|
97,243
|
|
Payment of costs related to initial public offering
|
|
|
|
|
-
|
|
|
|
(1,330
|
)
|
Proceeds from issuance of common stock
|
|
|
|
|
6,844
|
|
|
|
567
|
|
Net cash provided by financing activities
|
|
|
|
|
6,844
|
|
|
|
96,480
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
|
|
(36,461
|
)
|
|
|
72,917
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
|
105,257
|
|
|
|
19,453
|
|
Cash and cash equivalents, end of period
|
|
|
|
$
|
68,796
|
|
|
$
|
92,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from GAAP to Non-GAAP Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except per share data; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
|
Six Months Ended September 30,
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
2015
|
|
2014
|
Reconciliation of gross profit and gross margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
|
|
|
$
|
33,976
|
|
|
$
|
20,332
|
|
|
|
|
|
$
|
64,255
|
|
|
$
|
38,913
|
|
Plus: Stock-based compensation
|
|
|
|
|
309
|
|
|
|
101
|
|
|
|
|
|
|
560
|
|
|
|
194
|
|
Plus: Amortization of purchased intangibles
|
|
|
|
|
200
|
|
|
|
-
|
|
|
|
|
|
|
400
|
|
|
|
-
|
|
Plus: Amortization of stock-based compensation capitalized in
software development costs
|
|
|
|
|
121
|
|
|
|
34
|
|
|
|
|
|
|
221
|
|
|
|
62
|
|
Plus: Employer payroll tax on employee equity incentive plans
|
|
|
|
|
3
|
|
|
|
-
|
|
|
|
|
|
|
3
|
|
|
|
-
|
|
Non-GAAP gross profit
|
|
|
|
$
|
34,609
|
|
|
$
|
20,467
|
|
|
|
|
|
$
|
65,439
|
|
|
$
|
39,169
|
|
GAAP gross margin
|
|
|
|
|
79
|
%
|
|
|
80
|
%
|
|
|
|
|
|
79
|
%
|
|
|
81
|
%
|
Non-GAAP adjustments
|
|
|
|
|
2
|
%
|
|
|
1
|
%
|
|
|
|
|
|
2
|
%
|
|
|
1
|
%
|
Non-GAAP gross margin
|
|
|
|
|
81
|
%
|
|
|
81
|
%
|
|
|
|
|
|
81
|
%
|
|
|
82
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP research and development
|
|
|
|
$
|
10,616
|
|
|
$
|
5,336
|
|
|
|
|
|
$
|
19,370
|
|
|
$
|
10,248
|
|
Less: Stock-based compensation
|
|
|
|
|
(1,501
|
)
|
|
|
(255
|
)
|
|
|
|
|
|
(2,539
|
)
|
|
|
(457
|
)
|
Less: Employer payroll tax on employee equity incentive plans
|
|
|
|
|
(68
|
)
|
|
|
-
|
|
|
|
|
|
|
(68
|
)
|
|
|
-
|
|
Non-GAAP research and development
|
|
|
|
$
|
9,047
|
|
|
$
|
5,081
|
|
|
|
|
|
$
|
16,763
|
|
|
$
|
9,791
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP sales and marketing
|
|
|
|
$
|
29,365
|
|
|
$
|
19,019
|
|
|
|
|
|
$
|
58,048
|
|
|
$
|
37,635
|
|
Less: Stock-based compensation
|
|
|
|
|
(2,070
|
)
|
|
|
(1,055
|
)
|
|
|
|
|
|
(4,046
|
)
|
|
|
(1,904
|
)
|
Less: Amortization of purchased intangibles
|
|
|
|
|
(12
|
)
|
|
|
-
|
|
|
|
|
|
|
(25
|
)
|
|
|
-
|
|
Less: Employer payroll tax on employee equity incentive plans
|
|
|
|
|
(331
|
)
|
|
|
-
|
|
|
|
|
|
|
(331
|
)
|
|
|
-
|
|
Non-GAAP sales and marketing
|
|
|
|
$
|
26,952
|
|
|
$
|
17,964
|
|
|
|
|
|
$
|
53,646
|
|
|
$
|
35,731
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP general and administrative
|
|
|
|
$
|
8,960
|
|
|
$
|
5,249
|
|
|
|
|
|
$
|
16,944
|
|
|
$
|
10,609
|
|
Less: Stock-based compensation
|
|
|
|
|
(1,708
|
)
|
|
|
(824
|
)
|
|
|
|
|
|
(3,102
|
)
|
|
|
(1,611
|
)
|
Less: Lawsuit litigation
|
|
|
|
|
(10
|
)
|
|
|
(642
|
)
|
|
|
|
|
|
(27
|
)
|
|
|
(1,123
|
)
|
Less: Amortization of purchased intangibles
|
|
|
|
|
(34
|
)
|
|
|
-
|
|
|
|
|
|
|
(74
|
)
|
|
|
-
|
|
Less: Transaction costs related to acquisition
|
|
|
|
|
(104
|
)
|
|
|
-
|
|
|
|
|
|
|
(104
|
)
|
|
|
-
|
|
Less: Employer payroll tax on employee equity incentive plans
|
|
|
|
|
(78
|
)
|
|
|
-
|
|
|
|
|
|
|
(78
|
)
|
|
|
-
|
|
Non-GAAP general and administrative
|
|
|
|
$
|
7,026
|
|
|
$
|
3,783
|
|
|
|
|
|
$
|
13,559
|
|
|
$
|
7,875
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of loss from operations and operating margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP loss from operations
|
|
|
|
$
|
(14,965
|
)
|
|
$
|
(9,272
|
)
|
|
|
|
|
$
|
(30,107
|
)
|
|
$
|
(19,579
|
)
|
Plus: Stock-based compensation
|
|
|
|
|
5,588
|
|
|
|
2,235
|
|
|
|
|
|
|
10,247
|
|
|
|
4,166
|
|
Plus: Lawsuit litigation
|
|
|
|
|
10
|
|
|
|
642
|
|
|
|
|
|
|
27
|
|
|
|
1,123
|
|
Plus: Amortization of purchased intangibles
|
|
|
|
|
246
|
|
|
|
-
|
|
|
|
|
|
|
499
|
|
|
|
-
|
|
Plus: Transaction costs related to acquisition
|
|
|
|
|
104
|
|
|
|
-
|
|
|
|
|
|
|
104
|
|
|
|
-
|
|
Plus: Amortization of stock-based compensation capitalized in
software development costs
|
|
|
|
|
121
|
|
|
|
34
|
|
|
|
|
|
|
221
|
|
|
|
62
|
|
Plus: Employer payroll tax on employee equity incentive plans
|
|
|
|
|
480
|
|
|
|
-
|
|
|
|
|
|
|
480
|
|
|
|
-
|
|
Non-GAAP loss from operations
|
|
|
|
$
|
(8,416
|
)
|
|
$
|
(6,361
|
)
|
|
|
|
|
$
|
(18,529
|
)
|
|
$
|
(14,228
|
)
|
GAAP operating margin
|
|
|
|
|
(35
|
%)
|
|
|
(37
|
%)
|
|
|
|
|
|
(37
|
%)
|
|
|
(41
|
%)
|
Non-GAAP adjustments
|
|
|
|
|
15
|
%
|
|
|
12
|
%
|
|
|
|
|
|
14
|
%
|
|
|
11
|
%
|
Non-GAAP operating margin
|
|
|
|
|
(20
|
%)
|
|
|
(25
|
%)
|
|
|
|
|
|
(23
|
%)
|
|
|
(30
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss
|
|
|
|
$
|
(14,819
|
)
|
|
$
|
(9,212
|
)
|
|
|
|
|
$
|
(29,938
|
)
|
|
$
|
(19,395
|
)
|
Plus: Stock-based compensation
|
|
|
|
|
5,588
|
|
|
|
2,235
|
|
|
|
|
|
|
10,247
|
|
|
|
4,166
|
|
Plus: Lawsuit litigation
|
|
|
|
|
10
|
|
|
|
642
|
|
|
|
|
|
|
27
|
|
|
|
1,123
|
|
Plus: Amortization of purchased intangibles
|
|
|
|
|
246
|
|
|
|
-
|
|
|
|
|
|
|
499
|
|
|
|
-
|
|
Plus: Transaction costs related to acquisition
|
|
|
|
|
104
|
|
|
|
-
|
|
|
|
|
|
|
104
|
|
|
|
-
|
|
Plus: Amortization of stock-based compensation capitalized in
software development costs
|
|
|
|
|
121
|
|
|
|
34
|
|
|
|
|
|
|
221
|
|
|
|
62
|
|
Plus: Employer payroll tax on employee equity incentive plans
|
|
|
|
|
480
|
|
|
|
-
|
|
|
|
|
|
|
480
|
|
|
|
-
|
|
Non-GAAP net loss
|
|
|
|
$
|
(8,270
|
)
|
|
$
|
(6,301
|
)
|
|
|
|
|
$
|
(18,360
|
)
|
|
$
|
(14,044
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net loss per share attributable to common
stockholders, basic and diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss per share attributable to common stockholders, basic
and diluted
|
|
|
|
$
|
(0.31
|
)
|
|
$
|
(0.58
|
)
|
|
|
|
|
$
|
(0.63
|
)
|
|
$
|
(1.22
|
)
|
Non-GAAP adjustments to net loss
|
|
|
|
|
0.14
|
|
|
|
0.18
|
|
|
|
|
|
|
0.24
|
|
|
|
0.34
|
|
Non-GAAP adjustment to weighted-average shares used to compute net
loss per share
|
|
|
|
|
-
|
|
|
|
0.25
|
|
|
|
|
|
|
-
|
|
|
|
0.54
|
|
Non-GAAP net loss per share attributable to common stockholders,
basic and diluted
|
|
|
|
|
(0.17
|
)
|
|
|
(0.15
|
)
|
|
|
|
|
|
(0.39
|
)
|
|
|
(0.34
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of weighted-average shares used to compute net
loss per share attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP weighted-average shares used to compute net loss per share
attributable to common stockholders, basic and diluted
|
|
|
|
|
48,150
|
|
|
|
15,929
|
|
|
|
|
|
|
47,523
|
|
|
|
15,917
|
|
Conversion of preferred stock
|
|
|
|
|
-
|
|
|
|
24,813
|
|
|
|
|
|
|
-
|
|
|
|
24,813
|
|
Non-GAAP weighted-average shares used to compute net loss per share
attributable to common stockholders, basic and diluted
|
|
|
|
|
48,150
|
|
|
|
40,742
|
|
|
|
|
|
|
47,523
|
|
|
|
40,730
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20151105006402/en/
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