[February 09, 2016] |
|
Demandware Announces Fourth Quarter and Year End 2015 Financial Results
Demandware®,
Inc. (NYSE: DWRE), the industry-leading provider of enterprise cloud
commerce solutions, today announced financial results for its fourth
quarter and full year ended December 31, 2015.
Fourth Quarter Highlights
-
Subscription revenue for the fourth quarter was $65.8 million, a 34%
year over year increase from $49.2 million in the fourth quarter of
2014 and a 37% year over year increase on a constant currency basis
-
Subscription revenue for the full year was $201.0 million, a 38% year
over year increase from $145.9 million in 2014 and a 43% year over
year increase on a constant currency basis
-
Live customers reached 331 at December 31, 2015, an increase of 24%
from 267 last year
-
Live sites reached 1,506 at December 31, 2015, an increase of 32% from
1,143 last year
-
30 customers generated more than $100 million in gross merchandise
value on the Demandware digital solution in 2015, up from 22 customers
in 2014
-
Subscription dollar retention rate exceeded 120% in 2015 and customer
churn was less than 5%
-
Contract backlog (consisting of unbilled committed minimum
subscription fees plus deferred revenue) reached $594.6 million as of
December 31, 2015, an increase of 29% over $461.7 million as of
December 31, 2014 and up 30% on a constant currency basis
"We made clear progress on our 2015 objectives," stated Tom Ebling,
Chief Executive Officer, Demandware. "We have proven our model works for
large enterprise retailers with 30 customers each transacting more than
$100 million of gross merchandise value (GMV) on our platform, up from
22 last year. Our customers continue to take market share. Our 2015
comparable customer GMV growth of 25% on a constant currency basis was
nearly double the market rate. We have expanded into Italy and Japan and
have customers operating sites in approximately 50 countries. We are
making excellent progress with Demandware Store, the first-of-its-kind
cloud-based point of sale solution for the retail store, with several
charter customers and over 40 demos with store-based retailers at NRF.
The planned rollouts of predictive merchandising and Demandware Store
this year will further enhance our value proposition and position us to
deliver on the promise of omnichannel. We are uniquely positioned to
lead the market for enterprise class retail commerce."
-
Demandware signed significant new customers during the quarter,
including Birkenstock, Boggi, Brown Thomas, Charlotte Russe,
Destination Maternity, Graham & Brown, IKKS, Keen, Melissa & Doug, and
Ubisoft.
-
Leading retailers such as Acumen Brands, Cortefiel, Dickies, The
Jewellery Channel, Kendo, KUIU Ultralight Hunting, Nixon, Traeger
Pellet Grills, and TSI Holdings launched initial sites on the
Demandware Commerce Cloud during the quarter.
-
Existing customers like Clarins, Harman Industries, Hugo Boss, Jarden,
L'Oreal, Movado, Pandora, Samsonite, and Wolverine Worldwide expanded
their operations on the platform launching additional commerce sites
during the quarter.
"We achieved strong results for the fourth quarter with subscription
revenue at the high end of guidance and non-GAAP net income that
exceeded expectations," said Tim Adams, Chief Financial Officer,
Demandware. "Year-end backlog was also solid. Two transactions pushed
into 2016, which resulted in bookings growth of 22% on a constant
currency basis. Even with these delays, we more than doubled our number
of $2 million new deals year over year."
Total revenue for the fourth quarter was $75.6 million, a 44% increase
from $52.5 million in the fourth quarter of 2014. Total revenue for the
full year was $237.3 million, a 48% increase from $160.6 million in 2014.
Our GAAP net income for the fourth quarter of 2015 was $0.5 million, or
$0.01 per basic and diluted share, as compared to GAAP net loss of $3.8
million, or $(0.11) per basic and diluted share, for the fourth quarter
of 2014. Non-GAAP net income for the fourth quarter of 2015 was $14.5
million, or $0.40 per basic share and $0.38 per diluted share, as
compared to non-GAAP net income of $1.9 million, or $0.06 per basic
share and $0.05 per diluted share, for the fourth quarter of 2014.(1)
Our GAAP net loss for the full year 2015 was $36.6 million, or $(1.02)
per basic and diluted share, as compared to GAAP net loss of $27.1
million, or $(0.78) per basic and diluted share, in year 2014. Non-GAAP
net income for the full year 2015 was $10.8 million, or $0.30 per basic
share and $0.29 per diluted share, as compared to non-GAAP net income of
$1.2 million, or $0.03 per basic and diluted share, in year 2014.
(1)
At December 31, 2015, we had $197.0 million in cash, cash equivalents
and short term investments on the balance sheet, as compared to $243.7
million at December 31, 2014.
(1) Refer to "Non-GAAP Financial Measures" below
and the accompanying reconciliations for more detailed information about
the non-GAAP measures used in this release.
Outlook
"We are pleased to provide guidance for 2016 that is consistent with
both the top and bottom line growth targets we outlined at our recent
investor day," said Tom Ebling. "We have a strong pipeline heading into
2016, up nearly 40% on a constant currency basis, and our large deal
activity has never been greater. In order to factor in the potential for
longer closing timelines with large enterprise accounts and some
softness in Europe, we believe it is prudent to widen our 2016 bookings
growth target to 25% to 35% year over year. We expect GMV growth to
remain strong, and with investments planned in both growth and
innovation, we are confident that Demandware is well positioned to drive
continued value creation for both our customers and our shareholders in
2016."
For the 2016 year, the company expects:
$ and shares in millions
|
|
|
|
|
|
|
|
|
FY'16 Low
|
|
FY'16 High
|
|
Q1'16 Low
|
|
Q1'16 High
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable Customer GMV Growth (1)
|
|
|
17%
|
|
19%
|
|
|
|
|
|
Bookings Growth (1)
|
|
|
25%
|
|
35%
|
|
|
|
|
|
Churn Rate
|
|
|
<5%
|
|
<5%
|
|
|
|
|
|
Subscription Revenue
|
|
|
$260.0
|
|
$270.0
|
|
$56.0
|
|
$58.0
|
|
Total Revenue
|
|
|
$295.0
|
|
$305.0
|
|
$63.5
|
|
$65.5
|
|
Gross Margin (GAAP)
|
|
|
71%
|
|
71%
|
|
|
|
|
|
Gross Margin (Non-GAAP)
|
|
|
74%
|
|
74%
|
|
|
|
|
|
Operating Loss (GAAP)
|
|
|
$(52.0)
|
|
$(50.0)
|
|
|
|
|
|
Operating Income (Non-GAAP)
|
|
|
$8.0
|
|
$10.0
|
|
|
|
|
|
Net Loss (GAAP)
|
|
|
$(54.0)
|
|
$(52.0)
|
|
|
|
|
|
Net Income (Non-GAAP)
|
|
|
$6.0
|
|
$8.0
|
|
|
|
|
|
Basic weighted average shares outstanding
|
|
|
37
|
|
37
|
|
36
|
|
36
|
|
Diluted weighted average shares outstanding
|
|
|
40
|
|
40
|
|
38
|
|
38
|
|
(1) Year over Year in Constant Currency
Quarterly Conference Call
To access the call which will take place today at 5:00 p.m. ET, please
dial (877) 260-9772 in the U.S. or +1 (929) 387-3947 internationally.
The passcode for the call is: 36834744. 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 following the conclusion of
the call through February 16, 2016. The replay number is (855) 859-2056
in the U.S. or +1 (404) 537-3406 internationally. The passcode for the
replay is: 36834744. 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].
Demandware is a registered trademark of Demandware, Inc.
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
solutions; 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 and retail; 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 operating expenses, non-GAAP net
income (loss) and non-GAAP net income (loss) per share. This press
release also presents subscription revenue and percent change in
subscription revenue on a GAAP and a "constant currency" basis as well
as other operating metrics on a constant currency basis so that revenue
and the other operating metrics can be viewed without the impact of
fluctuations in foreign currency exchange rates, allowing for a
period-to-period comparison of underlying business performance.
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
operating expenses, 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. Our non-GAAP gross margin, non-GAAP operating
income and non-GAAP net income guidance for 2016 also 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. Subscription revenue as well as other
operating metrics on a constant currency basis exclude the impact of
foreign currency exchange rates, which is calculated by applying the
prior period's foreign currency exchange rates to the current period
foreign currency revenue, because foreign currency exchange rates are
subject to volatility and can obscure underlying performance. 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)
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
December 31, 2014
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
114,989
|
|
|
$
|
158,827
|
|
Short-term investments
|
|
|
|
82,020
|
|
|
|
84,880
|
|
Accounts receivable-net of allowance for doubtful accounts
|
|
|
|
60,793
|
|
|
|
42,441
|
|
Prepaid expenses and other current assets
|
|
|
|
8,424
|
|
|
|
8,564
|
|
Total current assets
|
|
|
|
266,226
|
|
|
|
294,712
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
21,862
|
|
|
|
14,028
|
|
Intangible assets, net
|
|
|
|
23,805
|
|
|
|
10,266
|
|
Goodwill
|
|
|
|
59,465
|
|
|
|
24,379
|
|
Other assets
|
|
|
|
6,040
|
|
|
|
1,785
|
|
Total assets
|
|
|
$
|
377,398
|
|
|
$
|
345,170
|
|
|
|
|
|
|
|
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
2,866
|
|
|
$
|
3,581
|
|
Accrued expenses
|
|
|
|
37,287
|
|
|
|
25,153
|
|
Deferred revenue
|
|
|
|
31,426
|
|
|
|
22,799
|
|
Total current liabilities
|
|
|
|
71,579
|
|
|
|
51,533
|
|
|
|
|
|
|
|
Deferred revenue
|
|
|
|
15,133
|
|
|
|
12,168
|
|
Other long-term liabilities
|
|
|
|
2,763
|
|
|
|
1,424
|
|
Total liabilities
|
|
|
|
89,475
|
|
|
|
65,125
|
|
|
|
|
|
|
|
Redeemable noncontrolling interests
|
|
|
|
457
|
|
|
|
823
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
Common stock
|
|
|
|
362
|
|
|
|
353
|
|
Additional paid-in capital
|
|
|
|
437,137
|
|
|
|
391,896
|
|
Treasury stock
|
|
|
|
-
|
|
|
|
(137
|
)
|
Accumulated other comprehensive loss
|
|
|
|
(858
|
)
|
|
|
(352
|
)
|
Accumulated deficit
|
|
|
|
(149,175
|
)
|
|
|
(112,538
|
)
|
Total stockholders' equity
|
|
|
|
287,466
|
|
|
|
279,222
|
|
|
|
|
|
|
|
Total liabilities, redeemable noncontrolling interest and
stockholders' equity
|
|
|
$
|
377,398
|
|
|
$
|
345,170
|
|
|
Demandware, Inc. Condensed Consolidated Statements
of Operations (unaudited; in thousands, except per
share data)
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Subscription
|
|
|
$
|
65,772
|
|
|
$
|
49,188
|
|
|
$
|
200,952
|
|
|
$
|
145,879
|
|
Services and other
|
|
|
|
9,791
|
|
|
|
3,314
|
|
|
|
36,327
|
|
|
|
14,674
|
|
Total revenue
|
|
|
|
75,563
|
|
|
|
52,502
|
|
|
|
237,279
|
|
|
|
160,553
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
Subscription
|
|
|
|
11,690
|
|
|
|
8,326
|
|
|
|
40,166
|
|
|
|
26,933
|
|
Services and other
|
|
|
|
7,549
|
|
|
|
4,024
|
|
|
|
27,299
|
|
|
|
15,115
|
|
Total cost of revenue
|
|
|
|
19,239
|
|
|
|
12,350
|
|
|
|
67,465
|
|
|
|
42,048
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
56,324
|
|
|
|
40,152
|
|
|
|
169,814
|
|
|
|
118,505
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
|
|
26,806
|
|
|
|
24,660
|
|
|
|
100,865
|
|
|
|
74,432
|
|
Research and development
|
|
|
|
18,030
|
|
|
|
11,177
|
|
|
|
65,342
|
|
|
|
34,983
|
|
General and administrative
|
|
|
|
11,109
|
|
|
|
10,496
|
|
|
|
46,272
|
|
|
|
36,882
|
|
Total operating expenses
|
|
|
|
55,945
|
|
|
|
46,333
|
|
|
|
212,479
|
|
|
|
146,297
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations
|
|
|
|
379
|
|
|
|
(6,181
|
)
|
|
|
(42,665
|
)
|
|
|
(27,792
|
)
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
141
|
|
|
|
107
|
|
|
|
437
|
|
|
|
312
|
|
Interest expense
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(108
|
)
|
Other income (expense)
|
|
|
|
144
|
|
|
|
(491
|
)
|
|
|
395
|
|
|
|
(1,522
|
)
|
Other income (expense), net
|
|
|
|
285
|
|
|
|
(384
|
)
|
|
|
832
|
|
|
|
(1,318
|
)
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
|
664
|
|
|
|
(6,565
|
)
|
|
|
(41,833
|
)
|
|
|
(29,110
|
)
|
Income tax provision (benefit)
|
|
|
|
241
|
|
|
|
(2,741
|
)
|
|
|
(4,832
|
)
|
|
|
(2,050
|
)
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
423
|
|
|
|
(3,824
|
)
|
|
|
(37,001
|
)
|
|
|
(27,060
|
)
|
Less: Net loss attributable to noncontrolling interest
|
|
|
|
(102
|
)
|
|
|
(7
|
)
|
|
|
(364
|
)
|
|
|
(7
|
)
|
Net income (loss) attributable to Demandware
|
|
|
$
|
525
|
|
|
$
|
(3,817
|
)
|
|
$
|
(36,637
|
)
|
|
$
|
(27,053
|
)
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) per share attributable to Demandware
|
|
|
$
|
0.01
|
|
|
$
|
(0.11
|
)
|
|
$
|
(1.02
|
)
|
|
$
|
(0.78
|
)
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average number of common shares outstanding
|
|
|
|
36,114
|
|
|
|
35,133
|
|
|
|
35,793
|
|
|
|
34,806
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income (loss) per share attributable to Demandware
|
|
|
$
|
0.01
|
|
|
$
|
(0.11
|
)
|
|
$
|
(1.02
|
)
|
|
$
|
(0.78
|
)
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average number of common shares outstanding
|
|
|
|
37,809
|
|
|
|
35,133
|
|
|
|
35,793
|
|
|
|
34,806
|
|
|
Demandware, Inc. Condensed Consolidated Statements
of Cash Flows (unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
423
|
|
|
$
|
(3,824
|
)
|
|
$
|
(37,001
|
)
|
|
$
|
(27,060
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
3,817
|
|
|
|
2,086
|
|
|
|
12,729
|
|
|
|
6,601
|
|
Consulting expense settled with stock awards
|
|
|
|
-
|
|
|
|
280
|
|
|
|
632
|
|
|
|
553
|
|
Bad debt expense
|
|
|
|
1
|
|
|
|
302
|
|
|
|
1,445
|
|
|
|
671
|
|
Stock-based compensation
|
|
|
|
9,675
|
|
|
|
7,259
|
|
|
|
36,720
|
|
|
|
26,630
|
|
Deferred income taxes
|
|
|
|
43
|
|
|
|
(2,798
|
)
|
|
|
(5,890
|
)
|
|
|
(2,798
|
)
|
Amortization of premium on marketable securities
|
|
|
|
91
|
|
|
|
209
|
|
|
|
411
|
|
|
|
802
|
|
Other non-cash reconciling items
|
|
|
|
247
|
|
|
|
(71
|
)
|
|
|
524
|
|
|
|
126
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
(12,919
|
)
|
|
|
(15,452
|
)
|
|
|
(10,689
|
)
|
|
|
(13,856
|
)
|
Prepaid expenses and other current assets
|
|
|
|
396
|
|
|
|
654
|
|
|
|
1,646
|
|
|
|
(4,207
|
)
|
Accounts payable
|
|
|
|
264
|
|
|
|
1,316
|
|
|
|
(178
|
)
|
|
|
399
|
|
Accrued expenses
|
|
|
|
5,273
|
|
|
|
8,262
|
|
|
|
10,392
|
|
|
|
8,019
|
|
Deferred revenue
|
|
|
|
8,226
|
|
|
|
4,885
|
|
|
|
6,982
|
|
|
|
8,045
|
|
Other assets and liabilities
|
|
|
|
(788
|
)
|
|
|
1,405
|
|
|
|
(2,846
|
)
|
|
|
(306
|
)
|
Net cash provided by operating activities
|
|
|
|
14,749
|
|
|
|
4,513
|
|
|
|
14,877
|
|
|
|
3,619
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
|
(1,852
|
)
|
|
|
(593
|
)
|
|
|
(15,767
|
)
|
|
|
(9,180
|
)
|
Development of internal use software
|
|
|
|
(131
|
)
|
|
|
-
|
|
|
|
(1,927
|
)
|
|
|
-
|
|
Purchase of marketable securities
|
|
|
|
(24,587
|
)
|
|
|
(21,237
|
)
|
|
|
(114,312
|
)
|
|
|
(132,750
|
)
|
Sale and maturity of marketable securities
|
|
|
|
20,534
|
|
|
|
34,960
|
|
|
|
120,976
|
|
|
|
84,191
|
|
Acquisition, net of cash acquired
|
|
|
|
-
|
|
|
|
(21,128
|
)
|
|
|
(54,733
|
)
|
|
|
(33,264
|
)
|
Net cash used in investing activities
|
|
|
|
(6,036
|
)
|
|
|
(7,998
|
)
|
|
|
(65,763
|
)
|
|
|
(91,003
|
)
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Proceeds from shares purchased under Employee Stock Purchase Plan
|
|
|
|
777
|
|
|
|
748
|
|
|
|
1,580
|
|
|
|
1,391
|
|
Proceeds from exercise of stock options
|
|
|
|
529
|
|
|
|
1,190
|
|
|
|
6,249
|
|
|
|
6,848
|
|
Payments of equipment notes
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,345
|
)
|
Contribution from redeemable noncontrolling interests
|
|
|
|
-
|
|
|
|
830
|
|
|
|
-
|
|
|
|
830
|
|
Treasury stock repurchase
|
|
|
|
-
|
|
|
|
(137
|
)
|
|
|
-
|
|
|
|
(137
|
)
|
Payments of software financing agreement
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(766
|
)
|
Net cash provided by financing activities
|
|
|
|
1,306
|
|
|
|
2,631
|
|
|
|
7,829
|
|
|
|
4,821
|
|
|
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS
|
|
|
|
(253
|
)
|
|
|
(568
|
)
|
|
|
(781
|
)
|
|
|
(1,035
|
)
|
|
|
|
|
|
|
|
|
|
|
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
|
|
9,766
|
|
|
|
(1,422
|
)
|
|
|
(43,838
|
)
|
|
|
(83,598
|
)
|
CASH AND CASH EQUIVALENTS-Beginning of period
|
|
|
|
105,223
|
|
|
|
160,249
|
|
|
|
158,827
|
|
|
|
242,425
|
|
CASH AND CASH EQUIVALENTS-End of period
|
|
|
$
|
114,989
|
|
|
$
|
158,827
|
|
|
$
|
114,989
|
|
|
$
|
158,827
|
|
|
Demandware, Inc. Stock Based Compensation Expense (unaudited,
in thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Cost of subscription revenue
|
|
|
$
|
241
|
|
$
|
224
|
|
$
|
985
|
|
$
|
701
|
Cost of service revenue
|
|
|
|
840
|
|
|
526
|
|
|
3,175
|
|
|
1,967
|
Sales and marketing
|
|
|
|
2,910
|
|
|
2,139
|
|
|
11,254
|
|
|
7,474
|
Research and development
|
|
|
|
3,230
|
|
|
2,357
|
|
|
11,867
|
|
|
7,513
|
General and administration
|
|
|
|
2,454
|
|
|
2,013
|
|
|
9,439
|
|
|
8,975
|
|
|
|
$
|
9,675
|
|
$
|
7,259
|
|
$
|
36,720
|
|
$
|
26,630
|
|
Demandware, Inc. Contingent Compensation Expense
Related to Acquisitions (unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Sales and marketing
|
|
|
$
|
1,150
|
|
$
|
441
|
|
$
|
4,481
|
|
$
|
1,644
|
Research and development
|
|
|
|
1,933
|
|
|
441
|
|
|
7,503
|
|
|
1,644
|
|
|
|
$
|
3,083
|
|
$
|
882
|
|
$
|
11,984
|
|
$
|
3,288
|
|
Demandware, Inc. Amortization Expense Related to
Acquired Intangible Assets (unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Cost of subscription revenue
|
|
|
$
|
1,102
|
|
$
|
612
|
|
$
|
4,358
|
|
$
|
1,242
|
Sales and marketing
|
|
|
|
123
|
|
|
25
|
|
|
467
|
|
|
102
|
|
|
|
$
|
1,225
|
|
$
|
637
|
|
$
|
4,825
|
|
$
|
1,344
|
|
Demandware, Inc. Non-Cash Taxes (unaudited,
in thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Non-cash tax (benefit)
|
|
|
$
|
-
|
|
$
|
(3,020
|
)
|
|
$
|
(6,088
|
)
|
|
$
|
(3,020
|
)
|
|
Demandware, Inc. Reconciliation of Non-GAAP
Financial Measures to Comparable GAAP Measures (unaudited;
in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
|
2014
|
Reconciliation between GAAP operating income (loss) and non-GAAP
operating income:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income (loss)
|
|
|
$
|
379
|
|
$
|
(6,181
|
)
|
|
|
$
|
(42,665
|
)
|
|
|
$
|
(27,792
|
)
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
|
9,675
|
|
|
7,259
|
|
|
|
|
36,720
|
|
|
|
|
26,630
|
|
Contingent compensation expense related to acquisitions
|
|
|
|
3,083
|
|
|
882
|
|
|
|
|
11,984
|
|
|
|
|
3,288
|
|
Amortization expense related to acquired intangible assets
|
|
|
|
1,225
|
|
|
637
|
|
|
|
|
4,825
|
|
|
|
|
1,344
|
|
Non-GAAP operating income
|
|
|
$
|
14,362
|
|
$
|
2,597
|
|
|
|
$
|
10,864
|
|
|
|
$
|
3,470
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation between GAAP operating expenses and non-GAAP
operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating expenses
|
|
|
$
|
55,945
|
|
$
|
46,333
|
|
|
|
$
|
212,479
|
|
|
|
$
|
146,297
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
|
8,594
|
|
|
6,509
|
|
|
|
|
32,560
|
|
|
|
|
23,962
|
|
Contingent compensation expense related to acquisitions
|
|
|
|
3,083
|
|
|
882
|
|
|
|
|
11,984
|
|
|
|
|
3,288
|
|
Amortization expense related to acquired intangible assets
|
|
|
|
123
|
|
|
25
|
|
|
|
|
467
|
|
|
|
|
102
|
|
Non-GAAP operating expenses
|
|
|
$
|
44,145
|
|
$
|
38,917
|
|
|
|
$
|
167,468
|
|
|
|
$
|
118,945
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Numerator:
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation between GAAP net income (loss) attributable to
Demandware and non-GAAP net income attributable to Demandware:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss) attributable to Demandware
|
|
|
$
|
525
|
|
$
|
(3,817
|
)
|
|
|
$
|
(36,637
|
)
|
|
|
$
|
(27,053
|
)
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
|
9,675
|
|
|
7,259
|
|
|
|
|
36,720
|
|
|
|
|
26,630
|
|
Contingent compensation expense related to acquisitions
|
|
|
|
3,083
|
|
|
882
|
|
|
|
|
11,984
|
|
|
|
|
3,288
|
|
Amortization expense related to acquired intangible assets
|
|
|
|
1,225
|
|
|
637
|
|
|
|
|
4,825
|
|
|
|
|
1,344
|
|
Non-cash tax (benefit)
|
|
|
|
-
|
|
|
(3,020
|
)
|
|
|
|
(6,088
|
)
|
|
|
|
(3,020
|
)
|
Non-GAAP net income attributable to Demandware
|
|
|
$
|
14,508
|
|
$
|
1,941
|
|
|
|
$
|
10,804
|
|
|
|
$
|
1,189
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation between GAAP and non-GAAP weighted average shares
used in computing diluted non-GAAP net income per common share:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP weighted average common shares outstanding, basic
|
|
|
|
36,114
|
|
|
35,133
|
|
|
|
|
35,793
|
|
|
|
|
34,806
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
Effect of dilutive securities
|
|
|
|
1,695
|
|
|
2,126
|
|
|
(1
|
)
|
|
1,927
|
|
|
(1
|
)
|
|
2,362(1
|
)
|
Non-GAAP weighted average common shares outstanding, dilutive
|
|
|
|
37,809
|
|
|
37,259
|
|
|
|
|
37,720
|
|
|
|
|
37,168
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per share, basic:
|
|
|
$
|
0.40
|
|
$
|
0.06
|
|
|
|
$
|
0.30
|
|
|
|
$
|
0.03
|
|
Non-GAAP net income per share, diluted:
|
|
|
$
|
0.38
|
|
$
|
0.05
|
|
|
|
$
|
0.29
|
|
|
|
$
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) These securities are anti-dilutive on a GAAP basis as a result of
the Company's net loss, but are considered dilutive on a non-GAAP basis
in periods where the Company has reported positive non-GAAP earnings.
|
Demandware, Inc. Reconciliation of Non-GAAP
Financial Measures to Comparable GAAP Measures (Continued) (unaudited;
in thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Reconciliation between GAAP subscription gross margin and
non-GAAP subscription gross margin:
|
|
|
|
|
|
|
|
|
|
Subscription revenue
|
|
|
$
|
65,772
|
|
|
$
|
49,188
|
|
|
$
|
200,952
|
|
|
$
|
145,879
|
|
Cost of subscription revenue
|
|
|
|
11,690
|
|
|
|
8,326
|
|
|
|
40,166
|
|
|
|
26,933
|
|
Subscription gross profit
|
|
|
|
54,082
|
|
|
|
40,862
|
|
|
|
160,786
|
|
|
|
118,946
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
Stock-based compensation allocated to cost of
subscription revenue
|
|
|
|
241
|
|
|
|
224
|
|
|
|
985
|
|
|
|
701
|
|
Amortization expense related to acquired intangible assets
allocated to cost of subscription revenue
|
|
|
|
1,102
|
|
|
|
612
|
|
|
|
4,358
|
|
|
|
1,242
|
|
Non-GAAP Subscription Gross Profit
|
|
|
|
55,425
|
|
|
|
41,698
|
|
|
|
166,129
|
|
|
|
120,889
|
|
Non-GAAP Subscription Gross Margin
|
|
|
|
84
|
%
|
|
|
85
|
%
|
|
|
83
|
%
|
|
|
83
|
%
|
|
|
|
|
|
|
|
|
|
|
Reconciliation between GAAP total gross margin and non-GAAP total
gross margin:
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
|
$
|
75,563
|
|
|
$
|
52,502
|
|
|
$
|
237,279
|
|
|
$
|
160,553
|
|
Total cost of revenue
|
|
|
|
19,239
|
|
|
|
12,350
|
|
|
|
67,465
|
|
|
|
42,048
|
|
Gross profit
|
|
|
|
56,324
|
|
|
|
40,152
|
|
|
|
169,814
|
|
|
|
118,505
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
Stock-based compensation allocated to cost of revenue
|
|
|
|
1,081
|
|
|
|
750
|
|
|
|
4,160
|
|
|
|
2,668
|
|
Amortization expense related to acquired intangible
assets allocated to cost of revenue
|
|
|
|
1,102
|
|
|
|
612
|
|
|
|
4,358
|
|
|
|
1,242
|
|
Non-GAAP Total Gross Profit
|
|
|
|
58,507
|
|
|
|
41,514
|
|
|
|
178,332
|
|
|
|
122,415
|
|
Non-GAAP Total Gross Margin
|
|
|
|
77
|
%
|
|
|
79
|
%
|
|
|
75
|
%
|
|
|
76
|
%
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
2014
|
|
% of Growth
|
|
2015
|
|
2014
|
|
% of Growth
|
Reconciliation between GAAP subscription revenue growth and
non-GAAP subscription revenue growth on a constant currency basis:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription revenue
|
|
|
$
|
65,772
|
|
$
|
49,188
|
|
34
|
%
|
|
$
|
200,952
|
|
$
|
145,879
|
|
38
|
%
|
Impact of changes in exchange rates
|
|
|
|
2,098
|
|
|
257
|
|
|
|
|
8,658
|
|
|
203
|
|
|
Subscription revenue on a constant currency basis
|
|
|
$
|
67,870
|
|
$
|
49,445
|
|
37
|
%
|
|
$
|
209,610
|
|
$
|
146,082
|
|
43
|
%
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160209006659/en/
[ Back To TMCnet.com's Homepage ]
|