[February 27, 2017] |
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Everbridge Announces Fourth Quarter and Full Year 2016 Financial Results
Everbridge,
Inc. (NASDAQ: EVBG), a global software company that provides critical
communications and enterprise safety applications to help keep people
safe and businesses running, today announced its financial results for
the fourth quarter and full year ended December 31, 2016.
"Continued business momentum contributed to a strong finish in 2016.
Revenue and adjusted EBITDA both exceeded the high end of our guidance
ranges," said Jaime Ellertson, Chief Executive Officer and Chairman of
Everbridge. "We are particularly excited about the pace of our
multi-product deals with both new and existing customers, which are
adding to our growth. Reflecting our continued operational discipline,
in addition to strong top-line growth, we also delivered our third
quarter in a row of positive adjusted EBITDA."
Ellertson continued, "Our enthusiasm in 2017 is enhanced by the new
capabilities enabled by our recent acquisitions of Crisis Commander and
IDV Solutions. The combination of our mass notification technology and
IDV's Visual Command Center enables us to offer the industry's first
Critical Event Management Platform. We believe this platform will expand
our value proposition and increase our market opportunity while
elevating our strategic position with customers and expanding our usage
throughout the enterprise space. As such, we believe we are better
positioned than ever to extend our market leadership in an
underpenetrated market as our business continues to scale."
Fourth Quarter 2016 Financial Highlights
-
Total revenue was $21.3 million, an increase of 31% compared to $16.2
million for the fourth quarter of 2015.
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GAAP operating loss was $(2.6) million, compared to a GAAP operating
loss of $(4.0) million for the fourth quarter of 2015.
-
Non-GAAP operating loss was $(0.9) million, compared to non-GAAP
operating loss of $(2.5) million for the fourth quarter of 2015.
Non-GAAP operating loss excludes stock-based compensation and
amortization of intangible assets related to acquisitions.
-
GAAP net loss was $(2.6) million, compared to $(4.0) million for the
fourth quarter of 2015. GAAP net loss per share was $(0.10), based on
27.1 million basic and diluted weighted average common shares
outstanding, compared to $(0.33) for the fourth quarter of 2015, based
on 12.3 million basic and diluted weighted average common shares
outstanding.
-
Non-GAAP net loss was $(0.9) million, compared to $(2.5) million in
the fourth quarter of 2015. Non-GAAP net loss per share was $(0.03),
based on 27.1 million basic and diluted weighted average common shares
outstanding, compared to $(0.20) for the fourth quarter of 2015, based
on 12.3 million basic and diluted weighted average common shares
outstanding. Non-GAAP net loss excludes stock-based compensation and
amortization of intangible assets related to acquisitions.
-
Adjusted EBITDA was $0.4 million, compared to $(1.7) million in the
fourth quarter of 2015. Adjusted EBITDA represents net loss before
interest income and interest expense, income tax expense and benefit,
depreciation and amortization expense and stock-based compensation
expense.
-
Cash flow from operations was $3.0 million compared to $0.4 million
for the fourth quarter of 2015.
-
Free cash flow was $1.5 million compared to $(1.1) million for the
fourth quarter of 2015. Free cash flow is cash flow from operations,
less cash used for capital expenditures and additions to capitalized
software development costs.
Full Year 2016 Financial Highlights
-
Total revenue was $76.8 million, an increase of 31% compared to $58.7
million for 2015.
-
GAAP operating loss was $(10.8) million, compared to a GAAP operating
loss of $(10.8) million for 2015.
-
Non-GAAP operating loss was $(4.5) million, compared to non-GAAP
operating loss of $(6.2) million for 2015.
-
GAAP net loss was $(11.3) million, compared to $(10.8) million for
2015. GAAP net loss per share was $(0.68), based on 16.7 million basic
and diluted weighted average common shares outstanding, compared to
$(0.88) for 2015, based on 12.3 million basic and diluted weighted
average common shares outstanding.
-
Non-GAAP net loss was $(5.0) million, compared to $(6.2) million in
2015. Non-GAAP net loss per share was $(0.30), based on 16.7 million
basic and diluted weighted average common shares outstanding, compared
to $(0.51) for 2015, based on 12.3 million basic and diluted weighted
average common shares outstanding.
-
Adjusted EBITDA was $0.0 million, compared to $(3.4) million in 2015.
-
Cash flow from operations was $9.5 million compared to $4.5 million
for 2015.
-
Free cash flow was $3.0 million compared to $(3.0) million for 2015.
-
Cash as of December 31, 2016 totaled $60.8 million, compared to $62.3
million as of September 30, 2016.
Recent Business Highlights
-
Ended 2016 with 3,205 global customers, up from 2,662 at the end of
2015.
-
Unveiled the Everbridge Fall 2016 Product Release which improves the
way that communities and corporations of all sizes can assess threats,
locate key people, automate processes and communicate effectively.
-
Acquired Sweden-based Svensk
Krisledning AB in December 2016, the developer of the SaaS mobile
crisis management solution, Crisis
Commander. The acquired solution extends the Everbridge Suite by
enabling complementary mobile collaboration, task assignment and
response management during critical events.
-
Acquired IDV
Solutions, LLC in January 2017, a leading provider of threat
assessment and operational visualization software. In combination with
Everbridge's critical communication, incident management and employee
safety capabilities, IDV's Visual Command Center® application will
form a key component of the industry's first Critical Event
Management™ (CEM) platform for dynamically assessing, responding to,
and managing the resolution of the wide range of threats and
disruptions which impact organizations' daily operations.
Business Outlook
Based on information available as of today, Everbridge is issuing
guidance for the first quarter and full year 2017 as indicated below.
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First Quarter 2017
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Full Year 2017
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Total Revenue
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$22.0
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to
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$22.2
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$100.0
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to
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$101.0
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GAAP net income/(loss)
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$(7.8)
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$(7.6)
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$(18.1)
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$(17.1)
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GAAP net income/(loss) per share
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$(0.29)
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$(0.28)
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$(0.66)
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$(0.63)
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Non-GAAP net income/(loss)
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$(5.2)
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$(5.0)
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$(9.1)
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$(8.1)
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Non-GAAP net income/(loss) per share
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$(0.19)
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$(0.18)
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$(0.33)
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$(0.30)
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Basic and diluted weighted average shares outstanding
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27.18
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27.18
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27.35
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27.35
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Adjusted EBITDA
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$(3.7)
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$(3.5)
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$(2.8)
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$(1.8)
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(All figures in millions, except per share)
Conference Call Information
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What:
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Everbridge Fourth Quarter and Full Year 2016 Financial Results
Conference Call
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When:
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Monday, February 27, 2017
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Time:
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4:30 p.m. ET
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Live Call:
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(844) 413-0949, domestic (216) 562-0459, international
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Replay:
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(855) 859-2056, passcode 60646265, domestic (404) 537-3406,
passcode 60646265, international
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Webcast (live & replay):
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http://ir.everbridge.com/phoenix.zhtml?c=254229&p=irol-calendar
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About Everbridge, Inc.
Everbridge,
Inc. (NASDAQ: EVBG) is a global software company that provides critical
communications and enterprise safety applications that enable customers
to automate and accelerate the process of keeping people safe and
businesses running during critical events. During public safety threats
such as active shooter situations, terrorist attacks or severe weather
conditions, as well as critical business events such as IT outages or
cyber incidents, over 3,000 global customers rely on the company's
SaaS-based platform to quickly and reliably construct and deliver
contextual notifications to millions of people at one time. The
company's platform sent over 1.5 billion messages in 2016, and offers
the ability to reach over 200 countries and territories with secure
delivery to more than 100 different communication devices. The company's
critical communications and enterprise safety applications include Mass
Notification, Incident Management, IT Alerting, Safety Connection™,
Community Engagement™, Secure Messaging and Internet of Things, and are
easy-to-use and deploy, secure, highly scalable and reliable. Everbridge
serves 8 of the 10 largest U.S. cities, 8 of the 10 largest U.S.-based
investment banks, all four of the largest global accounting firms, 24 of
the 25 busiest North American airports and 6 of the 10 largest global
automakers. Everbridge is based in Boston and Los Angeles with
additional offices in San Francisco, Lansing, Beijing and London. For
more information, visit www.everbridge.com,
read the company blog,
and follow on Twitter
and Facebook.
Non-GAAP Financial Measures
This press release contains the following non-GAAP financial measures:
non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross margin,
non-GAAP sales and marketing, non-GAAP research and development,
non-GAAP general and administrative, non-GAAP operating expenses,
non-GAAP operating income/(loss), non-GAAP net income/(loss), non-GAAP
net income/(loss) per share, adjusted EBITDA, and free cash flow.
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 Everbridge's financial
condition and results of operations. We use these non-GAAP measures for
financial, operational and budgetary decision-making purposes, to
understand and evaluate our core operating performance and trends, and
to generate future operating plans. 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.
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 the anticipated opportunity and trends for growth in our
critical communications and enterprise safety applications and our
overall business, our market opportunity, our expectations regarding
sales of our products, our goal to maintain market leadership and extend
the markets in which we compete for customers, and our expected
financial results for the first quarter of 2017 and the full fiscal year
2017. 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,"
"target," "project," "goals," "estimate," "potential," "predict," "may,"
"will," "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 attract new customers and retain and increase sales to
existing customers; our ability to increase sales of our Mass
Notification application and/or ability to increase sales of our other
applications; our ability to successfully integrate businesses and
assets that we have acquired or may acquire in the future; developments
in the market for targeted and contextually relevant critical
communications or the associated regulatory environment; our estimates
of market opportunity and forecasts of market growth may prove to be
inaccurate; we have not been profitable on a consistent basis
historically and may not achieve or maintain profitability in the
future; the lengthy and unpredictable sales cycles for new customers;
nature of our business exposes us to inherent liability risks; our
ability to maintain successful relationships with our channel partners
and technology partners; our ability to manage our growth effectively;
our ability to respond to competitive pressures; potential liability
related to privacy and security of personally identifiable information;
our ability to protect our intellectual property rights, and the other
risks detailed in our risk factors discussed in filings with the U.S.
Securities and Exchange Commission ("SEC"), including but not limited to
our Quarterly Report on Form 10-Q for the quarter ended September 30,
2016 filed with the SEC on November 14, 2016. The forward-looking
statements included in this press release represent our views as of the
date of this press release. We undertake no intention or 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.
All Everbridge products are trademarks of Everbridge, Inc. in the USA
and other countries. All other product or company names mentioned are
the property of their respective owners.
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Consolidated Balance Sheets
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(in thousands)
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(unaudited)
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December 31, 2016
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December 31, 2015
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Current assets:
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Cash and cash equivalents
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$
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60,765
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$
|
8,578
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Accounts receivable, net
|
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17,812
|
|
|
|
|
15,699
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Prepaid expenses
|
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|
1,770
|
|
|
|
|
1,371
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Other current assets
|
|
|
|
2,536
|
|
|
|
|
3,972
|
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Total current assets
|
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82,883
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|
|
|
|
29,620
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Property and equipment, net
|
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|
2,923
|
|
|
|
|
3,620
|
|
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Capitalized software development costs, net
|
|
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|
8,792
|
|
|
|
|
8,178
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|
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Goodwill
|
|
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|
9,676
|
|
|
|
|
7,839
|
|
|
Intangible assets, net
|
|
|
|
3,940
|
|
|
|
|
4,119
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Other assets
|
|
|
|
108
|
|
|
|
|
133
|
|
|
Total assets
|
|
|
$
|
108,322
|
|
|
|
$
|
53,509
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|
|
|
|
|
|
|
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Current liabilities:
|
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|
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Accounts payable
|
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$
|
2,434
|
|
|
|
$
|
3,521
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|
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Accrued payroll and employee related liabilities
|
|
|
|
7,456
|
|
|
|
|
6,062
|
|
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Accrued expenses
|
|
|
|
1,957
|
|
|
|
|
1,460
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Term loan
|
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-
|
|
|
|
|
830
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Deferred revenue
|
|
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|
50,412
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|
|
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|
39,159
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Notes payable
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|
|
-
|
|
|
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|
2,018
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|
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Other current liabilities
|
|
|
|
548
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|
|
|
|
569
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Total current liabilities
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|
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|
62,807
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|
|
|
|
53,619
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|
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Long-term liabilities:
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Deferred revenue, noncurrent
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|
2,222
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|
|
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|
1,308
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Line of credit
|
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-
|
|
|
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|
9,976
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|
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Term loan, net of current portion
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|
|
|
-
|
|
|
|
|
4,146
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|
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Deferred tax liabilities
|
|
|
|
494
|
|
|
|
|
345
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|
|
Other long-term liabilities
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|
|
|
447
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|
|
|
|
166
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Total liabilities
|
|
|
$
|
65,970
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|
|
|
$
|
69,560
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|
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Stockholders' equity (deficit):
|
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|
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Series A preferred stock
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$
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-
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$
|
3
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Series A-1 preferred stock
|
|
|
|
-
|
|
|
|
|
5
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Class A common stock
|
|
|
|
-
|
|
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|
|
1
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Common stock
|
|
|
|
27
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|
|
|
|
11
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|
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Additional paid-in capital
|
|
|
|
132,246
|
|
|
|
|
62,274
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|
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Accumulated deficit
|
|
|
|
(89,618
|
)
|
|
|
|
(78,332
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)
|
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Accumulated other comprehensive loss
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|
|
|
(303
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)
|
|
|
|
(13
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)
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Total stockholders' equity (deficit)
|
|
|
|
42,352
|
|
|
|
|
(16,051
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)
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Total liabilities and stockholders' equity (deficit)
|
|
|
$
|
108,322
|
|
|
|
$
|
53,509
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Consolidated Statements of Comprehensive Loss
|
|
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(in thousands, except share and per share data)
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|
|
|
|
|
|
|
|
|
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|
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(unaudited)
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|
|
|
|
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|
|
|
|
|
|
|
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Three months ended
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Year ended
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December 31,
|
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December 31,
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|
|
|
|
2016
|
|
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2015
|
|
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2016
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2015
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|
|
|
|
|
|
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|
|
|
|
|
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|
Revenue
|
|
|
$
|
21,280
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|
|
|
$
|
16,220
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|
|
|
|
$
|
76,846
|
|
|
|
$
|
58,720
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|
|
Cost of revenue
|
|
|
|
6,443
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|
|
|
|
5,579
|
|
|
|
|
|
23,767
|
|
|
|
|
19,789
|
|
|
Gross profit
|
|
|
|
14,837
|
|
|
|
|
10,641
|
|
|
|
|
|
53,079
|
|
|
|
|
38,931
|
|
|
|
|
|
|
69.72
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%
|
|
|
|
65.60
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%
|
|
|
|
|
69.07
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%
|
|
|
|
66.30
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%
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Operating expenses:
|
|
|
|
|
|
|
|
|
|
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Sales and marketing
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|
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|
9,188
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|
|
|
|
7,827
|
|
|
|
|
|
34,847
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|
|
|
|
25,925
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Research and development
|
|
|
|
4,205
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|
|
|
|
3,027
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|
|
|
|
|
14,765
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|
|
|
|
11,521
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General and administrative
|
|
|
|
4,041
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|
|
|
|
3,831
|
|
|
|
|
|
14,293
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|
|
|
|
12,272
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Total operating expenses
|
|
|
|
17,434
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|
|
|
|
14,685
|
|
|
|
|
|
63,905
|
|
|
|
|
49,718
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|
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Operating loss
|
|
|
|
(2,597
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)
|
|
|
|
(4,044
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)
|
|
|
|
|
(10,826
|
)
|
|
|
|
(10,787
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
34
|
|
|
|
|
-
|
|
|
|
|
|
34
|
|
|
|
|
1
|
|
|
Interest expense
|
|
|
|
-
|
|
|
|
|
(133
|
)
|
|
|
|
|
(506
|
)
|
|
|
|
(538
|
)
|
|
Other income (expense), net
|
|
|
|
(14
|
)
|
|
|
|
(10
|
)
|
|
|
|
|
(12
|
)
|
|
|
|
(62
|
)
|
|
Total other income (expense), net
|
|
|
|
20
|
|
|
|
|
(143
|
)
|
|
|
|
|
(484
|
)
|
|
|
|
(599
|
)
|
|
Loss before income taxes
|
|
|
|
(2,577
|
)
|
|
|
|
(4,187
|
)
|
|
|
|
|
(11,310
|
)
|
|
|
|
(11,386
|
)
|
|
Income taxes, net
|
|
|
|
(51
|
)
|
|
|
|
188
|
|
|
|
|
|
24
|
|
|
|
|
562
|
|
|
Net loss
|
|
|
$
|
(2,628
|
)
|
|
|
$
|
(3,999
|
)
|
|
|
|
$
|
(11,286
|
)
|
|
|
$
|
(10,824
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
(0.10
|
)
|
|
|
$
|
(0.33
|
)
|
|
|
|
$
|
(0.68
|
)
|
|
|
$
|
(0.88
|
)
|
|
Diluted
|
|
|
$
|
(0.10
|
)
|
|
|
$
|
(0.33
|
)
|
|
|
|
$
|
(0.68
|
)
|
|
|
$
|
(0.88
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
27,149,528
|
|
|
|
|
12,265,998
|
|
|
|
|
|
16,659,561
|
|
|
|
|
12,257,413
|
|
|
Diluted
|
|
|
|
27,149,528
|
|
|
|
|
12,265,998
|
|
|
|
|
|
16,659,561
|
|
|
|
|
12,257,413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment, net
|
|
|
|
10
|
|
|
|
|
28
|
|
|
|
|
|
(290
|
)
|
|
|
|
29
|
|
|
of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive loss
|
|
|
$
|
(2,618
|
)
|
|
|
$
|
(3,971
|
)
|
|
|
|
$
|
(11,576
|
)
|
|
|
$
|
(10,795
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense included in the above:
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
Year ended
|
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
$
|
45
|
|
|
|
$
|
47
|
|
|
|
|
$
|
180
|
|
|
|
$
|
150
|
|
|
Sales and marketing
|
|
|
|
222
|
|
|
|
|
115
|
|
|
|
|
|
725
|
|
|
|
|
315
|
|
|
Research and development
|
|
|
|
85
|
|
|
|
|
84
|
|
|
|
|
|
348
|
|
|
|
|
297
|
|
|
General and administrative
|
|
|
|
584
|
|
|
|
|
376
|
|
|
|
|
|
1,848
|
|
|
|
|
760
|
|
|
Total stock-based compensation
|
|
|
$
|
936
|
|
|
|
$
|
622
|
|
|
|
|
$
|
3,101
|
|
|
|
$
|
1,522
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
Year ended
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
2016
|
|
|
2015
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
$
|
(2,628
|
)
|
|
|
$
|
(3,999
|
)
|
|
|
|
$
|
(11,286
|
)
|
|
|
$
|
(10,824
|
)
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
2,067
|
|
|
|
|
1,732
|
|
|
|
|
|
7,742
|
|
|
|
|
5,976
|
|
Loss on disposal of assets
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
74
|
|
|
|
|
-
|
|
Deferred income taxes
|
|
|
|
86
|
|
|
|
|
(431
|
)
|
|
|
|
|
(138
|
)
|
|
|
|
(431
|
)
|
Accretion of interest on notes payable
|
|
|
|
-
|
|
|
|
|
25
|
|
|
|
|
|
-
|
|
|
|
|
130
|
|
Non-cash interest expense on line of credit and term loan
|
|
|
|
-
|
|
|
|
|
7
|
|
|
|
|
|
67
|
|
|
|
|
11
|
|
Provision for doubtful accounts
|
|
|
|
292
|
|
|
|
|
35
|
|
|
|
|
|
387
|
|
|
|
|
366
|
|
Stock-based compensation
|
|
|
|
929
|
|
|
|
|
588
|
|
|
|
|
|
3,056
|
|
|
|
|
1,488
|
|
Increase (decrease) in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
|
(1,904
|
)
|
|
|
|
(3,715
|
)
|
|
|
|
|
(2,295
|
)
|
|
|
|
(4,813
|
)
|
Prepaid expenses
|
|
|
|
840
|
|
|
|
|
353
|
|
|
|
|
|
(348
|
)
|
|
|
|
(656
|
)
|
Other assets
|
|
|
|
647
|
|
|
|
|
326
|
|
|
|
|
|
(1,096
|
)
|
|
|
|
(408
|
)
|
Accounts payable
|
|
|
|
(674
|
)
|
|
|
|
(177
|
)
|
|
|
|
|
(423
|
)
|
|
|
|
866
|
|
Accrued payroll and employee liabilities
|
|
|
|
(246
|
)
|
|
|
|
709
|
|
|
|
|
|
1,312
|
|
|
|
|
1,181
|
|
Accrued expenses
|
|
|
|
234
|
|
|
|
|
175
|
|
|
|
|
|
539
|
|
|
|
|
(171
|
)
|
Deferred revenue
|
|
|
|
3,377
|
|
|
|
|
4,670
|
|
|
|
|
|
11,982
|
|
|
|
|
11,623
|
|
Other liabilities
|
|
|
|
(52
|
)
|
|
|
|
60
|
|
|
|
|
|
(70
|
)
|
|
|
|
113
|
|
Net cash provided by operating activities
|
|
|
|
2,968
|
|
|
|
|
358
|
|
|
|
|
|
9,503
|
|
|
|
|
4,451
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
(231
|
)
|
|
|
|
(172
|
)
|
|
|
|
|
(970
|
)
|
|
|
|
(2,502
|
)
|
Payments for acquisitions, net of acquired cash
|
|
|
|
(2,306
|
)
|
|
|
|
-
|
|
|
|
|
|
(2,306
|
)
|
|
|
|
-
|
|
Additions to capitalized software development costs
|
|
|
|
(1,200
|
)
|
|
|
|
(1,255
|
)
|
|
|
|
|
(5,494
|
)
|
|
|
|
(4,902
|
)
|
Change in restricted cash
|
|
|
|
-
|
|
|
|
|
77
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Purchase of intangibles
|
|
|
|
(250
|
)
|
|
|
|
-
|
|
|
|
|
|
(250
|
)
|
|
|
|
-
|
|
Net cash used in investing activities
|
|
|
|
(3,987
|
)
|
|
|
|
(1,350
|
)
|
|
|
|
|
(9,020
|
)
|
|
|
|
(7,404
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from line of credit
|
|
|
|
-
|
|
|
|
|
7,000
|
|
|
|
|
|
9,500
|
|
|
|
|
12,000
|
|
Payments on line of credit
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
(19,500
|
)
|
|
|
|
(5,000
|
)
|
Payments of issuance cost relating to the line of credit and term
loan
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
(19
|
)
|
|
|
|
(59
|
)
|
Principal payments on capital leases
|
|
|
|
-
|
|
|
|
|
(27
|
)
|
|
|
|
|
(58
|
)
|
|
|
|
(101
|
)
|
Proceeds from initial public offering, net of underwriters discount
and commissions
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
69,750
|
|
|
|
|
-
|
|
Payments of initial public offering costs
|
|
|
|
(588
|
)
|
|
|
|
(248
|
)
|
|
|
|
|
(1,960
|
)
|
|
|
|
(1,391
|
)
|
Payment on note payable
|
|
|
|
-
|
|
|
|
|
(1,779
|
)
|
|
|
|
|
(2,018
|
)
|
|
|
|
(1,779
|
)
|
(Payments on) proceeds from term loan
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
(5,000
|
)
|
|
|
|
5,000
|
|
Proceeds from option exercises
|
|
|
|
2
|
|
|
|
|
15
|
|
|
|
|
|
750
|
|
|
|
|
49
|
|
Proceeds from warrant exercises
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
25
|
|
|
|
|
-
|
|
Repurchase of common stock
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
(1,500
|
)
|
Net cash (used) provided by financing activities
|
|
|
|
(586
|
)
|
|
|
|
4,961
|
|
|
|
|
|
51,470
|
|
|
|
|
7,219
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rates on cash
|
|
|
|
74
|
|
|
|
|
(71
|
)
|
|
|
|
|
234
|
|
|
|
|
(100
|
)
|
Net (decrease) increase in cash
|
|
|
|
(1,531
|
)
|
|
|
|
3,898
|
|
|
|
|
|
52,187
|
|
|
|
|
4,166
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
62,296
|
|
|
|
|
4,680
|
|
|
|
|
|
8,578
|
|
|
|
|
4,412
|
|
Cash and cash equivalents, end of period
|
|
|
$
|
60,765
|
|
|
|
$
|
8,578
|
|
|
|
|
$
|
60,765
|
|
|
|
$
|
8,578
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP measures to non-GAAP measures
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
Year ended
|
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
$
|
6,443
|
|
|
|
$
|
5,579
|
|
|
|
|
$
|
23,767
|
|
|
|
$
|
19,789
|
|
|
Amortization of acquired intangibles
|
|
|
|
(567
|
)
|
|
|
|
(635
|
)
|
|
|
|
|
(2,318
|
)
|
|
|
|
(2,003
|
)
|
|
Stock-based compensation
|
|
|
|
(45
|
)
|
|
|
|
(47
|
)
|
|
|
|
|
(180
|
)
|
|
|
|
(150
|
)
|
|
Non-GAAP cost of revenue
|
|
|
|
5,831
|
|
|
|
|
4,897
|
|
|
|
|
|
21,269
|
|
|
|
|
17,636
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
14,837
|
|
|
|
|
10,641
|
|
|
|
|
|
53,079
|
|
|
|
|
38,931
|
|
|
Amortization of acquired intangibles
|
|
|
|
567
|
|
|
|
|
635
|
|
|
|
|
|
2,318
|
|
|
|
|
2,003
|
|
|
Stock-based compensation
|
|
|
|
45
|
|
|
|
|
47
|
|
|
|
|
|
180
|
|
|
|
|
150
|
|
|
Non-GAAP gross profit
|
|
|
|
15,449
|
|
|
|
|
11,323
|
|
|
|
|
|
55,577
|
|
|
|
|
41,084
|
|
|
Non-GAAP gross margin
|
|
|
|
72.60
|
%
|
|
|
|
69.81
|
%
|
|
|
|
|
72.32
|
%
|
|
|
|
69.97
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
|
|
9,188
|
|
|
|
|
7,827
|
|
|
|
|
|
34,847
|
|
|
|
|
25,925
|
|
|
Stock-based compensation
|
|
|
|
(222
|
)
|
|
|
|
(115
|
)
|
|
|
|
|
(725
|
)
|
|
|
|
(315
|
)
|
|
Non-GAAP sales and marketing
|
|
|
|
8,966
|
|
|
|
|
7,712
|
|
|
|
|
|
34,122
|
|
|
|
|
25,610
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
|
4,205
|
|
|
|
|
3,027
|
|
|
|
|
|
14,765
|
|
|
|
|
11,521
|
|
|
Stock-based compensation
|
|
|
|
(85
|
)
|
|
|
|
(84
|
)
|
|
|
|
|
(348
|
)
|
|
|
|
(297
|
)
|
|
Non-GAAP research and development
|
|
|
|
4,120
|
|
|
|
|
2,943
|
|
|
|
|
|
14,417
|
|
|
|
|
11,224
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative
|
|
|
|
4,041
|
|
|
|
|
3,831
|
|
|
|
|
|
14,293
|
|
|
|
|
12,272
|
|
|
Amortization of acquired intangibles
|
|
|
|
(215
|
)
|
|
|
|
(270
|
)
|
|
|
|
|
(916
|
)
|
|
|
|
(1,088
|
)
|
|
Stock-based compensation
|
|
|
|
(584
|
)
|
|
|
|
(376
|
)
|
|
|
|
|
(1,848
|
)
|
|
|
|
(760
|
)
|
|
Non-GAAP general and administrative
|
|
|
|
3,242
|
|
|
|
|
3,185
|
|
|
|
|
|
11,529
|
|
|
|
|
10,424
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
|
17,434
|
|
|
|
|
14,685
|
|
|
|
|
|
63,905
|
|
|
|
|
49,718
|
|
|
Amortization of acquired intangibles
|
|
|
|
(215
|
)
|
|
|
|
(270
|
)
|
|
|
|
|
(916
|
)
|
|
|
|
(1,088
|
)
|
|
Stock-based compensation
|
|
|
|
(891
|
)
|
|
|
|
(575
|
)
|
|
|
|
|
(2,921
|
)
|
|
|
|
(1,372
|
)
|
|
Non-GAAP operating expenses
|
|
|
$
|
16,328
|
|
|
|
$
|
13,840
|
|
|
|
|
$
|
60,068
|
|
|
|
$
|
47,258
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss
|
|
|
$
|
(2,597
|
)
|
|
|
$
|
(4,044
|
)
|
|
|
|
$
|
(10,826
|
)
|
|
|
$
|
(10,787
|
)
|
|
Amortization of acquired intangibles
|
|
|
|
782
|
|
|
|
|
905
|
|
|
|
|
|
3,234
|
|
|
|
|
3,091
|
|
|
Stock-based compensation
|
|
|
|
936
|
|
|
|
|
622
|
|
|
|
|
|
3,101
|
|
|
|
|
1,522
|
|
|
Non-GAAP operating loss
|
|
|
$
|
(879
|
)
|
|
|
$
|
(2,517
|
)
|
|
|
|
$
|
(4,491
|
)
|
|
|
$
|
(6,174
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
$
|
(2,628
|
)
|
|
|
$
|
(3,999
|
)
|
|
|
|
$
|
(11,286
|
)
|
|
|
$
|
(10,824
|
)
|
|
Amortization of acquired intangibles
|
|
|
|
782
|
|
|
|
|
905
|
|
|
|
|
|
3,234
|
|
|
|
|
3,091
|
|
|
Stock-based compensation
|
|
|
|
936
|
|
|
|
|
622
|
|
|
|
|
|
3,101
|
|
|
|
|
1,522
|
|
|
Non-GAAP net loss
|
|
|
$
|
(910
|
)
|
|
|
$
|
(2,472
|
)
|
|
|
|
$
|
(4,951
|
)
|
|
|
$
|
(6,211
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding, basic and diluted
|
|
|
|
27,149,528
|
|
|
|
|
12,265,998
|
|
|
|
|
|
16,659,561
|
|
|
|
|
12,257,413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net loss per share
|
|
|
$
|
(0.03
|
)
|
|
|
$
|
(0.20
|
)
|
|
|
|
$
|
(0.30
|
)
|
|
|
$
|
(0.51
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
$
|
(2,628
|
)
|
|
|
$
|
(3,999
|
)
|
|
|
|
$
|
(11,286
|
)
|
|
|
$
|
(10,824
|
)
|
|
Interest expense, net
|
|
|
|
(34
|
)
|
|
|
|
133
|
|
|
|
|
|
472
|
|
|
|
|
537
|
|
|
Income taxes, net
|
|
|
|
51
|
|
|
|
|
(188
|
)
|
|
|
|
|
(24
|
)
|
|
|
|
(562
|
)
|
|
Depreciation and amortization
|
|
|
|
2,067
|
|
|
|
|
1,732
|
|
|
|
|
|
7,742
|
|
|
|
|
5,976
|
|
|
EBITDA
|
|
|
|
(544
|
)
|
|
|
|
(2,322
|
)
|
|
|
|
|
(3,096
|
)
|
|
|
|
(4,873
|
)
|
|
Stock-based compensation
|
|
|
|
936
|
|
|
|
|
622
|
|
|
|
|
|
3,101
|
|
|
|
|
1,522
|
|
|
Adjusted EBITDA
|
|
|
$
|
392
|
|
|
|
$
|
(1,700
|
)
|
|
|
|
$
|
5
|
|
|
|
$
|
(3,351
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
$
|
2,968
|
|
|
|
$
|
358
|
|
|
|
|
$
|
9,503
|
|
|
|
$
|
4,451
|
|
|
Capital expenditures
|
|
|
|
(231
|
)
|
|
|
|
(172
|
)
|
|
|
|
|
(970
|
)
|
|
|
|
(2,502
|
)
|
|
Additions to capitalized software development costs
|
|
|
|
(1,200
|
)
|
|
|
|
(1,255
|
)
|
|
|
|
|
(5,494
|
)
|
|
|
|
(4,902
|
)
|
|
Free cash flow
|
|
|
$
|
1,537
|
|
|
|
$
|
(1,069
|
)
|
|
|
|
$
|
3,039
|
|
|
|
$
|
(2,953
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Continued) Reconciliation of GAAP measures to non-GAAP measures
|
|
|
|
|
|
|
|
|
|
|
|
(in millions, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business outlook:
|
|
|
Three months ended
|
|
|
|
Year ended
|
|
|
|
|
March 31, 2017
|
|
|
|
December 31, 2017
|
|
|
|
|
Low end
|
|
|
High end
|
|
|
|
Low end
|
|
|
High end
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
$
|
(7.8
|
)
|
|
|
$
|
(7.6
|
)
|
|
|
|
$
|
(18.1
|
)
|
|
|
$
|
(17.1
|
)
|
|
Amortization of acquired intangibles
|
|
|
|
1.7
|
|
|
|
|
1.7
|
|
|
|
|
|
5.2
|
|
|
|
|
5.2
|
|
|
Stock-based compensation
|
|
|
|
0.9
|
|
|
|
|
0.9
|
|
|
|
|
|
3.8
|
|
|
|
|
3.8
|
|
|
Non-GAAP net loss
|
|
|
$
|
(5.2
|
)
|
|
|
$
|
(5.0
|
)
|
|
|
|
$
|
(9.1
|
)
|
|
|
$
|
(8.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding, basic and diluted
|
|
|
|
27,180,000
|
|
|
|
|
27,180,000
|
|
|
|
|
|
27,350,000
|
|
|
|
|
27,350,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
|
|
|
$
|
(0.29
|
)
|
|
|
$
|
(0.28
|
)
|
|
|
|
$
|
(0.66
|
)
|
|
|
$
|
(0.63
|
)
|
|
Non-GAAP net loss per share
|
|
|
$
|
(0.19
|
)
|
|
|
$
|
(0.18
|
)
|
|
|
|
$
|
(0.33
|
)
|
|
|
$
|
(0.30
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
$
|
(7.8
|
)
|
|
|
$
|
(7.6
|
)
|
|
|
|
$
|
(18.1
|
)
|
|
|
$
|
(17.1
|
)
|
|
Interest income (expense), net
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Benefit from income taxes
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Depreciation and amortization
|
|
|
|
3.2
|
|
|
|
|
3.2
|
|
|
|
|
|
11.5
|
|
|
|
|
11.5
|
|
|
EBITDA
|
|
|
|
(4.6
|
)
|
|
|
|
(4.4
|
)
|
|
|
|
|
(6.6
|
)
|
|
|
|
(5.6
|
)
|
|
Stock-based compensation
|
|
|
|
0.9
|
|
|
|
|
0.9
|
|
|
|
|
|
3.8
|
|
|
|
|
3.8
|
|
|
Adjusted EBITDA
|
|
|
$
|
(3.7
|
)
|
|
|
$
|
(3.5
|
)
|
|
|
|
$
|
(2.8
|
)
|
|
|
$
|
(1.8
|
)
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170227006378/en/
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