[August 10, 2017] |
|
NantHealth Reports 2017 Second Quarter Financial Results; Implements Plan to Focus on Core Competencies, Enhance Profitability and Position for Growth of Artificial Intelligence for Cancer Care
NantHealth, Inc. (NASDAQ-GS: NH), a next-generation, evidence-based,
personalized healthcare company, today reported financial results for
its second quarter ended June 30, 2017.
NantHealth said today that it has taken a series of methodically
analyzed actions, planned over the past nine months post initial public
offering (IPO), to focus the business on its core competencies of
artificial intelligence and be the leading cancer company driving 21st
century delivery of care. The restructuring included integrating the
multiple acquisitions and partnership with NantOmics made prior to its
IPO to focus on Cancer machine learning systems and artificial
intelligence, including GPS Cancer ProteoGenomic Molecular Profiling
Solution, the nation's only CLIA-CAP machine learning diagnostic assay,
and Eviti Clinical Decision Support currently covering over 23 million
lives, with Connected Care and Provider/Payer Engagement services.
The company said that it has signed an agreement with Allscripts to sell
its provider/patient engagement assets, which will enable the company to
integrate the remaining engineering teams to focus on cancer. The sale
of assets and restructuring implementation will result in significant
reduction of operating losses. The consideration for the sale of assets
includes the conveyance of 15 million NantHealth shares previously
purchased by Allscripts. Between synergies and the transfer of some
number of personnel to Allscripts together with NantHealth's internal
consolidation, headcount will be reduced by approximately 300 staff.
This sale and other steps the company has taken, including integration
of the acquired businesses and synergies saved from same, is expected to
result in annualized cost savings of more than $70 million.
GPS Cancer - Highlights
NantHealth said that GPS adoption continues to grow with the largest
month of orders to date in July. The company said that 379 GPS
commercial tests were ordered in Q2, with 264 GPS delivered; and that it
added 6,300 Covered Lives under a new regional agreement with the
International Association of Fire Fighters at the end of Q1.
-
Number of GPS Cancer payers: At June 30, 2017, the company's
expanded sales team developed a late-stage pipeline that includes
several national and regional health plans with contract signings
expected by year end.
-
Local Coverage Determination (LCD) & National Coverage by CMS:
Discussions are continuing for both local and national coverage with
CMS and FDA regarding GPS Cancer coverage by Medicare. The company is
encouraged following multiple detailed meetings with CMS in which the
accuracy and comprehensiveness of the GPS Cancer solution, as well as
its clinical utility, were presented. The documentation and validation
for review for coverage by CMS has been completed and will be filed
this quarter.
-
Expanded international adoption: The company is pursuing GPS
Cancer partnerships with locally based resellers. Post quarter end,
the company added Sistemas Medicos Nacionales as the first
international payer to cover GPS Cancer for patients, bringing a new
standard of care to Mexico.
-
Increased field sales and clinical team: In Q2, the company
continued to add experienced professionals to the field sales team,
including international sales, that call on oncologists; increased
clinical support for oncologists engaged with the company's GPS Cancer
team.
"We remain focused on extending coverage and driving physician
engagement for our GPS Cancer solution around the world," said Patrick
Soon-Shiong, M.D., Chief Executive Officer and Chairman of NantHealth.
"We strongly believe that GPS will result in extended and improved
quality of life. Internationally, we are pursuing opportunities through
partnerships with locally based resellers and we have added a seasoned
sales executive to aid our efforts. Post quarter end, Sistemas Medicos
Nacionales became the first international payer to cover GPS Cancer for
patients, bringing a new standard of care to Mexico. On the domestic
front, our efforts include introducing pilot programs with commercial
insurance and self-insured payers to accelerate coverage adoption. In
addition, we are continuing to add experienced professionals to our
sales and clinical support teams to further drive GPS physician adoption
nationwide. I am pleased to report that the team has developed a deep,
late-stage pipeline that includes national and regional health plans,
and new orders are trending favorably as a result of the increased
resources. We are gaining traction with physicians, and the number of
oncologists that have ordered the test has grown to 432 as of the end of
the second quarter."
Payer Engagement & Clinical Decision Support Software and Services:
-
Eviti (Clinical Decision Support) covered lives increased to
approximately 23.4 million at the end of Q2 from 22.5 million at the
end of Q1.
-
The company signed a three-year contract extension with Blue Cross and
Blue Shield of Nebraska (BCBSNE) for Payor engagement SaaS services.
The agreement also adds Navinet Open Document Exchange solution to its
existing set of solutions in use by this customer.
-
Added a new Navinet Open customer with the execution of an agreement
with Medical Mutual of Omaha.
-
The company executed an agreement with a new payer customer intended
for nationwide deployment of NantHealth's Clinical Decision Support
solutions nationwide.
"We are very pleased to extend and expand our relationship with BCBSNE,
the largest commercial insurer in the state of Nebraska and a long-time
client of NantHealth. The agreement renews the contract for NaviNet Open
and adds NantHealth's Document Exchange solution," said Ron Louks, Chief
Operating Officer of NantHealth. "Regarding our second quarter financial
performance, increased sales in our software and hardware business was
the key growth driver for both total net revenue and gross margin
compared with the first quarter."
Business and Financial Highlights
-
A Restructuring Plan was implemented in the third quarter to
focus on the company's core competencies and position the artificial
intelligent platform to focus on cancer: GPS (Cancer Molecular
Profiling Solution) and Clinical Decision Support, Connected Care and
Payer Engagement. Synergies of the restructuring plan and headcount
reduction to result in cost savings anticipated to exceed $70 million
annually and significantly accelerate timeline to profitability.
-
On August 3, 2017, entered into an agreement with Allscripts
Healthcare Solutions, Inc. under which NantHealth agreed to sell its
provider/patient engagement solutions business. The agreement is
subject to customary closing conditions and is expected to close in
the third quarter of 2017.
On a sequential quarterly basis, total net revenue increased $3.7
million, or 17%, from $22.5 million, largely due to higher sales of
software and hardware. For the 2017 second quarter, total net revenue
was $26.2 million, compared with $31.5 million for the 2016 second
quarter. The decline was primarily due to a $5.2 million decrease in
sales of services outside the company's core business lines. On a
sequential quarterly basis, gross profit increased $6.1 million, or
175%, from $3.5 million. Gross profit rose to $9.6 million compared with
$9.3 million for the prior year second quarter.
Selling, general and administrative expenses declined to $22.9 million
from $47.2 million for the 2016 second quarter. Research and development
expenses decreased to $11.8 million from $24.3 million. For the second
quarter of 2017, the company recorded loss from related party equity
method investment of $38.9 million, which included a $36.0 million
non-cash impairment charge as a result of the company's determination
that the fair value of its investment in NantOmics had declined below
its carrying value as of June 30, 2017. The decline in the fair value of
the company's investment in NantOmics was primarily caused by delays in
GPS revenue growth. In last year's second quarter, the company recorded
loss from related party equity method investment of $2.4 million. Net
loss was $70.1 million, or $0.58 per share, compared with $54.1 million,
or $0.54 per share, for 2016 second quarter.
Financial results for the 2017 second quarter included approximately
$38.9 million loss from related party equity method investment, $1.6
million of corporate restructuring expense, $1.1 million of net non-cash
expense related to convertible notes and $4.6 million of intangible
amortization, totaling $0.38 per share. On a non-GAAP basis, adjusted
net loss was $22.5 million, or $0.18 per share, for the 2017 second
quarter, compared with $16.5 million, or $0.15 per share, for the 2016
second quarter.
Conference Call Information and Forward-Looking Statements
Later today, the company will host a conference call at 1:30 p.m. PT
(4:30 p.m. ET) to review its results of operations for the second
quarter ended June 30, 2017. The conference call will be available to
interested parties by dialing 844-309-3709 from the U.S. or Canada, or
281-962-4864 from international locations, passcode 67325779. The call
will be broadcast via the Internet at www.nanthealth.com.
Listeners are encouraged to visit the website at least 10 minutes prior
to the start of the scheduled presentation to register, download and
install any necessary audio software. A playback of the call will be
archived and accessible on the same website for at least three months.
Discussion during the conference call may include forward-looking
statements regarding topics such as the company's financial status and
performance, regulatory and operational developments, and other comments
the company may make about its future plans or prospects in response to
questions from participants on the conference call.
Use of Non-GAAP Financial Measures
This news release contains references to Non-GAAP financial measures,
including adjusted net loss and adjusted net loss per share, which are
financial measures that are not prepared in conformity with United
States generally accepted accounting principles (U.S. GAAP). The
Company's management believes that the presentation of Non-GAAP
financial measures provides useful supplementary information regarding
operational performance, because it enhances an investor's overall
understanding of the financial results for the Company's core business.
Additionally, it provides a basis for the comparison of the financial
results for the Company's core business between current, past and future
periods. Other companies may define these measures in different ways.
Non-GAAP financial measures should be considered only as a supplement
to, and not as a substitute for or as a superior measure to, financial
measures prepared in accordance with U.S. GAAP. Non-GAAP per share
numbers are calculated based on one class of common stock and do not
incorporate the effects, if any, of using the two-class method.
About NantHealth, Inc.
NantHealth, Inc., a member of the NantWorks ecosystem of companies, is a
next-generation, evidence-based, personalized healthcare company
enabling improved patient outcomes and more effective treatment
decisions for critical illnesses. NantHealth's unique systems-based
approach to personalized healthcare applies novel diagnostics tailored
to the specific molecular profiles of patient tissues and integrates
this molecular data in a clinical setting with large-scale, real-time
biometric signal and phenotypic data to track patient outcomes and
deliver precision medicine. For nearly a decade, NantHealth has
developed an adaptive learning system, which includes its unique
software, middleware and hardware systems infrastructure that collects,
indexes, analyzes and interprets billions of molecular, clinical,
operational and financial data points derived from novel and traditional
sources, continuously improves decision-making and further optimizes our
clinical pathways and decision algorithms over time. For more
information please visit www.nanthealth.com.
About GPS Cancer™
GPS Cancer™ is a unique, comprehensive test available through
NantHealth. GPS
Coverage GPS Cancer integrates whole genome (DNA) sequencing,
whole transcriptome (RNA) sequencing, and quantitative proteomics
through mass spectrometry, providing oncologists with a comprehensive
molecular profile of a patient's cancer to inform personalized treatment
strategies. GPS Cancer testing is conducted in CLIA-certified and
CAP-accredited laboratories, and is a key enabler for Cancer
Breakthroughs 2020, the world's most comprehensive cancer collaborative
initiative seeking to accelerate the potential of combination
immunotherapy as the next generation standard of care in cancer
patients. For more information, visit www.gpscancer.com and
www.cancerbreakthroughs2020.org.
This news release contains certain statements of a forward-looking
nature relating to future events or future business performance. Forward-looking
statements can be identified by the words "expects," "anticipates,"
"believes," "intends," "estimates," "plans," "will," "outlook" and
similar expressions. Forward-looking statements are based on
management's current plans, estimates, assumptions and projections, and
speak only as of the date they are made. Risks and uncertainties
include, but are not limited to: our ability to successfully integrate a
complex learning system to address a wide range of healthcare issues;
our ability to successfully amass the requisite data to achieve maximum
network effects; appropriately allocating financial and human resources
across a broad array of product and service offerings; raising
additional capital as necessary to fund our operations; achieving
significant commercial market acceptance for our sequencing and
molecular analysis solutions; establish relationships with, key thought
leaders or payors' key decision makers in order to establish GPS Cancer
as a standard of care for patients with cancer; our ability to grow the
market for our Systems Infrastructure, NantOS and NantOS apps;
successfully enhancing our Systems Infrastructure, NantOS or NantOS apps
to achieve market acceptance and keep pace with technological
developments; customer concentration; competition; security breaches;
bandwidth limitations; our ability to continue our relationship with
NantOmics; our ability to obtain regulatory approvals; dependence upon
senior management; the need to comply with and meet applicable laws and
regulations; unexpected adverse events; clinical adoption and market
acceptance of GPS Cancer; and anticipated cost savings. We undertake no
obligation to update any forward-looking statement in light of new
information or future events, except as otherwise required by law. Forward-looking
statements involve inherent risks and uncertainties, most of which are
difficult to predict and are generally beyond our control. Actual
results or outcomes may differ materially from those implied by the
forward-looking statements as a result of the impact of a number of
factors, many of which are discussed in more detail in our reports filed
with the Securities and Exchange Commission.
|
NantHealth, Inc.
|
|
Condensed Consolidated Balance Sheets
|
|
(Dollars in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
December 31,
2016
|
|
|
(Unaudited)
|
|
|
Assets
|
|
|
|
|
Current assets
|
|
|
|
|
Cash and cash equivalents
|
$
|
92,669
|
|
|
$
|
160,353
|
|
|
Accounts receivable, net
|
|
11,345
|
|
|
|
13,728
|
|
|
Inventories
|
|
2,165
|
|
|
|
2,217
|
|
|
Deferred implementation costs
|
|
4,207
|
|
|
|
3,336
|
|
|
Related party receivables, net
|
|
1,136
|
|
|
|
899
|
|
|
Prepaid expenses and other current assets
|
|
5,228
|
|
|
|
5,046
|
|
|
Total current assets
|
|
116,750
|
|
|
|
185,579
|
|
|
Property, plant, and equipment, net
|
|
31,773
|
|
|
|
29,139
|
|
|
Deferred implementation costs, net of current
|
|
8,882
|
|
|
|
7,910
|
|
|
Goodwill
|
|
131,068
|
|
|
|
131,068
|
|
|
Intangible assets, net
|
|
109,287
|
|
|
|
119,126
|
|
|
Investment in related party
|
|
163,786
|
|
|
|
207,197
|
|
|
Related party receivable, net of current
|
|
1,869
|
|
|
|
1,971
|
|
|
Other assets
|
|
2,033
|
|
|
|
2,317
|
|
|
Total assets
|
$
|
565,448
|
|
|
$
|
684,307
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
Current liabilities
|
|
|
|
|
Accounts payable
|
$
|
1,195
|
|
|
$
|
6,720
|
|
|
Accrued and other current liabilities
|
|
18,686
|
|
|
|
25,231
|
|
|
Deferred revenue
|
|
18,699
|
|
|
|
17,216
|
|
|
Related party payables, net
|
|
11,368
|
|
|
|
8,082
|
|
|
Total current liabilities
|
|
49,948
|
|
|
|
57,249
|
|
|
Deferred revenue, net of current
|
|
12,244
|
|
|
|
17,238
|
|
|
Related party liabilities
|
|
8,521
|
|
|
|
5,612
|
|
|
Related party promissory note
|
|
112,666
|
|
|
|
112,666
|
|
|
Related party convertible note, net
|
|
7,750
|
|
|
|
7,564
|
|
|
Convertible notes, net
|
|
72,763
|
|
|
|
70,810
|
|
|
Other liabilities
|
|
1,741
|
|
|
|
1,574
|
|
|
Total liabilities
|
|
265,633
|
|
|
|
272,713
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
Common stock, $0.0001 par value per share, 750,000,000 shares
authorized; 121,953,800 and 121,250,437 shares issued and
outstanding at June 30, 2017 and December 31, 2016, respectively
(Including 6,976 shares of restricted stock)
|
|
12
|
|
|
|
12
|
|
|
Additional paid-in capital
|
|
885,654
|
|
|
|
886,334
|
|
|
Accumulated deficit
|
|
(586,452
|
)
|
|
|
(475,273
|
)
|
|
Accumulated other comprehensive income
|
|
601
|
|
|
|
521
|
|
|
Total stockholders' equity
|
|
299,815
|
|
|
|
411,594
|
|
|
Total liabilities and stockholders' equity
|
$
|
565,448
|
|
|
$
|
684,307
|
|
|
|
|
|
|
|
|
|
|
|
NantHealth, Inc.
|
|
Condensed Consolidated Statements of Operations
|
|
(Dollars in thousands, except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net revenue
|
$
|
26,230
|
|
|
$
|
31,490
|
|
|
|
$
|
48,739
|
|
|
$
|
50,941
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cost of revenue
|
|
16,672
|
|
|
|
22,240
|
|
|
|
|
35,701
|
|
|
|
35,278
|
|
|
Gross profit
|
|
9,558
|
|
|
|
9,250
|
|
|
|
|
13,038
|
|
|
|
15,663
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
22,944
|
|
|
|
47,248
|
|
|
|
|
43,822
|
|
|
|
74,621
|
|
|
Research and development
|
|
11,846
|
|
|
|
24,322
|
|
|
|
|
25,245
|
|
|
|
35,016
|
|
|
Amortization of software license and acquisition-related assets
|
|
1,814
|
|
|
|
1,813
|
|
|
|
|
3,628
|
|
|
|
3,628
|
|
|
Total operating expenses
|
|
36,604
|
|
|
|
73,383
|
|
|
|
|
72,695
|
|
|
|
113,265
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
(27,046
|
)
|
|
|
(64,133
|
)
|
|
|
|
(59,657
|
)
|
|
|
(97,602
|
)
|
|
Interest expense, net
|
|
(4,013
|
)
|
|
|
(1,758
|
)
|
|
|
|
(7,982
|
)
|
|
|
(3,256
|
)
|
|
Other income (expense), net
|
|
57
|
|
|
|
(77
|
)
|
|
|
|
330
|
|
|
|
261
|
|
|
Loss from related party equity method investment including
impairment loss
|
|
(38,885
|
)
|
|
|
(2,375
|
)
|
|
|
|
(43,411
|
)
|
|
|
(5,289
|
)
|
|
Loss before income taxes
|
|
(69,887
|
)
|
|
|
(68,343
|
)
|
|
|
|
(110,720
|
)
|
|
|
(105,886
|
)
|
|
Provision for (benefit from) income taxes
|
|
177
|
|
|
|
(14,211
|
)
|
|
|
|
459
|
|
|
|
(18,609
|
)
|
|
Net loss
|
$
|
(70,064
|
)
|
|
$
|
(54,132
|
)
|
|
|
$
|
(111,179
|
)
|
|
$
|
(87,277
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share (1):
|
|
|
|
|
|
|
|
|
|
Basic and diluted - common stock
|
$
|
(0.58
|
)
|
|
$
|
(0.54
|
)
|
|
|
$
|
(0.91
|
)
|
|
$
|
(0.91
|
)
|
|
Basic and diluted - redeemable common stock
|
|
N/A
|
|
|
$
|
0.25
|
|
|
|
|
N/A
|
|
|
$
|
0.49
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding (1):
|
|
|
|
|
|
|
|
|
Basic and diluted - common stock
|
|
121,756,108
|
|
|
|
104,072,198
|
|
|
|
|
121,687,454
|
|
|
|
101,846,445
|
|
|
Basic and diluted - redeemable common stock
|
|
N/A
|
|
|
|
9,419,152
|
|
|
|
|
N/A
|
|
|
|
10,066,719
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Footnote:
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|
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|
|
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(1)
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The net income (loss) per share and weighted average shares
outstanding for the three and six months ended June 30, 2016, have
been computed to give effect to the LLC Conversion that occurred
on June 1, 2016, prior to the Company's initial public offering
("IPO"). In conjunction with the LLC Conversion, (a) all of the
Company's outstanding units automatically converted into shares of
common stock, based on the relative rights of the Company's
pre-IPO equityholders as set forth in the Company's limited
liability company agreement and (b) the Company adopted and filed
a certificate of incorporation with the Secretary of State of the
state of Delaware and adopted bylaws. The Company adopted and
filed an amendment to its certificate of incorporation with the
Secretary of State of the state of Delaware to effect a 1-for-5.5
reverse stock split of its common stock on June 1, 2016.
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|
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The net loss per share for the common stock for the three and six
months ended June 30, 2016 reflects $2,333 and $4,958,
respectively in accretion value allocated to the redeemable common
stock. The redeemable common stock contained a put right, which
expired unexercised on June 20, 2016. As a result of and as of
that date, the shares were no longer redeemable and were included
in common stock.
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NantHealth, Inc.
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Supplemental Revenue Schedule
|
(Dollars in thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
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Three Months Ended
June 30,
|
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Six Months Ended
June 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Software and hardware
|
|
$
|
3,446
|
|
$
|
4,149
|
|
$
|
4,091
|
|
$
|
4,823
|
Software-as-a-service
|
|
|
15,281
|
|
|
15,181
|
|
|
30,512
|
|
|
28,882
|
Total software-related revenue
|
|
|
18,727
|
|
|
19,330
|
|
|
34,603
|
|
|
33,705
|
Maintenance
|
|
|
4,693
|
|
|
4,512
|
|
|
7,855
|
|
|
7,650
|
Sequencing and molecular analysis
|
|
|
450
|
|
|
45
|
|
|
960
|
|
|
45
|
Other services
|
|
|
2,360
|
|
|
7,603
|
|
|
5,321
|
|
|
9,541
|
Total net revenue
|
|
$
|
26,230
|
|
$
|
31,490
|
|
$
|
48,739
|
|
$
|
50,941
|
|
|
|
|
|
|
|
|
|
Cost of Revenue:
|
|
|
|
|
|
|
|
|
Software and hardware
|
|
$
|
528
|
|
$
|
435
|
|
$
|
840
|
|
$
|
674
|
Software-as-a-service
|
|
|
6,226
|
|
|
9,314
|
|
|
13,459
|
|
|
13,737
|
Total software-related cost of revenue
|
|
|
6,754
|
|
|
9,749
|
|
|
14,299
|
|
|
14,411
|
Maintenance
|
|
|
954
|
|
|
743
|
|
|
1,816
|
|
|
1,273
|
Sequencing and molecular analysis
|
|
|
1,512
|
|
|
359
|
|
|
3,050
|
|
|
359
|
Other services
|
|
|
4,647
|
|
|
7,492
|
|
|
10,325
|
|
|
11,057
|
Amortization of developed technologies
|
|
|
2,805
|
|
|
3,897
|
|
|
6,211
|
|
|
8,178
|
Total cost of revenue
|
|
$
|
16,672
|
|
$
|
22,240
|
|
$
|
35,701
|
|
$
|
35,278
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NantHealth, Inc.
|
|
Non-GAAP Net Loss and Non-GAAP Net Loss Per Share
|
|
(Dollars in thousands, except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
2017
|
|
|
|
2016
|
|
|
Net loss
|
|
$
|
(70,064
|
)
|
|
$
|
(54,132
|
)
|
|
$
|
(111,179
|
)
|
|
$
|
(87,277
|
)
|
|
Adjustments to GAAP net loss:
|
|
|
|
|
|
|
|
|
|
Loss from related party equity method investment including
impairment loss
|
|
|
38,885
|
|
|
|
2,375
|
|
|
|
43,411
|
|
|
|
5,289
|
|
|
Stock-based compensation expense
|
|
|
637
|
|
|
|
43,691
|
|
|
|
887
|
|
|
|
43,788
|
|
|
Corporate restructuring
|
|
|
1,593
|
|
|
|
179
|
|
|
|
1,813
|
|
|
|
2,145
|
|
|
Acquisition related compensation expense
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,814
|
|
|
Acquisition related sales incentive
|
|
|
671
|
|
|
|
40
|
|
|
|
1,334
|
|
|
|
1,461
|
|
|
Change in fair value of derivatives liability
|
|
|
(24
|
)
|
|
|
-
|
|
|
|
(239
|
)
|
|
|
-
|
|
|
Non-cash interest expense related to convertible notes
|
|
|
1,088
|
|
|
|
-
|
|
|
|
2,139
|
|
|
|
-
|
|
|
Intangible amortization
|
|
|
4,619
|
|
|
|
5,710
|
|
|
|
9,839
|
|
|
|
11,806
|
|
|
Impacts of intangibles amortization and the conversion from a
limited liability company to a corporation on provision for (benefit
from) income taxes
|
|
|
141
|
|
|
|
(14,386
|
)
|
|
|
374
|
|
|
|
(18,914
|
)
|
|
Total adjustments to GAAP net loss
|
|
|
47,610
|
|
|
|
37,609
|
|
|
|
59,558
|
|
|
|
50,389
|
|
|
Net loss - Non-GAAP
|
|
$
|
(22,454
|
)
|
|
$
|
(16,523
|
)
|
|
$
|
(51,621
|
)
|
|
$
|
(36,888
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding (1)
|
|
|
121,756,108
|
|
|
|
104,072,198
|
|
|
|
121,687,454
|
|
|
|
101,846,445
|
|
|
Weighted average Series F/redeemable stock (1)(2)
|
|
|
-
|
|
|
|
9,419,152
|
|
|
|
-
|
|
|
|
10,066,719
|
|
|
Shares outstanding - Non-GAAP (1)
|
|
|
121,756,108
|
|
|
|
113,491,350
|
|
|
|
121,687,454
|
|
|
|
111,913,164
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share - Non-GAAP (1)
|
|
$
|
(0.18
|
)
|
|
$
|
(0.15
|
)
|
|
$
|
(0.42
|
)
|
|
$
|
(0.33
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Loss per Common Share to Net Loss per
Common Share - Non-GAAP (Unaudited):
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
2017
|
|
|
|
2016
|
|
|
Net loss per common share - GAAP
|
|
$
|
(0.58
|
)
|
|
$
|
(0.54
|
)
|
|
$
|
(0.91
|
)
|
|
$
|
(0.91
|
)
|
|
Adjustments to GAAP net loss per common share:
|
|
|
|
|
|
Loss from related party equity method investment including
impairment loss
|
|
|
0.32
|
|
|
|
0.02
|
|
|
|
0.36
|
|
|
|
0.05
|
|
|
Stock-based compensation expense
|
|
|
0.01
|
|
|
|
0.42
|
|
|
|
0.01
|
|
|
|
0.43
|
|
|
Corporate restructuring
|
|
|
0.01
|
|
|
|
-
|
|
|
|
0.01
|
|
|
|
0.02
|
|
|
Acquisition related compensation expense
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.05
|
|
|
Acquisition related sales incentive
|
|
|
0.01
|
|
|
|
-
|
|
|
|
0.01
|
|
|
|
0.01
|
|
|
Change in fair value of derivatives liability
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Non-cash interest expense related to convertible notes
|
|
|
0.01
|
|
|
|
-
|
|
|
|
0.02
|
|
|
|
-
|
|
|
Intangible amortization
|
|
|
0.04
|
|
|
|
0.06
|
|
|
|
0.08
|
|
|
|
0.13
|
|
|
Impacts of intangibles amortization and the conversion from a
limited liability company to a corporation on provision for (benefit
from) income taxes
|
|
|
-
|
|
|
|
(0.14
|
)
|
|
|
-
|
|
|
|
(0.19
|
)
|
|
Accretion to redemption value of Series F/redeemable common stock
|
|
|
-
|
|
|
|
0.02
|
|
|
|
-
|
|
|
|
0.05
|
|
|
Dilution from Series F/redeemable common stock
|
|
|
-
|
|
|
|
0.01
|
|
|
|
-
|
|
|
|
0.03
|
|
|
Total adjustments to GAAP net loss per common share
|
|
|
0.40
|
|
|
|
0.39
|
|
|
|
0.49
|
|
|
|
0.58
|
|
|
Net loss per common share - Non-GAAP (1)
|
|
$
|
(0.18
|
)
|
|
$
|
(0.15
|
)
|
|
$
|
(0.42
|
)
|
|
$
|
(0.33
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
The net loss per common share - non-GAAP, weighted average shares
outstanding, weighted average Series F units/redeemable stock, and
shares outstanding - non-GAAP have been computed to give effect to
the LLC conversion that occurred June 1, 2016 prior to our IPO. In
conjunction with the LLC Conversion, (a) all of our outstanding
units automatically converted into shares of common stock, based
on the relative rights of our pre-IPO equityholders as set forth
in the limited liability company agreement and (b) we adopted and
filed a certificate of incorporation with the Secretary of State
of the state of Delaware and adopted bylaws. We filed an amended
certificate of incorporation to effect a 1-for-5.5 reverse stock
split of our common stock on June 1, 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
The weighted average shares outstanding have been further adjusted
to account for the redeemable Series F units (converted to common
stock in conjunction with the LLC conversion), whose Put Right
expired on June 20, 2016. Prior to June 20, 2016, these
units/shares of common stock were classified as redeemable
members'/stockholders' equity in the balance sheet, and as such,
were not included in the weighted-average shares outstanding prior
to June 20, 2016. The Put Right expired June 20, 2016, and the
shares were no longer redeemable and are included in shareholders'
equity following that day. The weighted-average shares are
adjusted to include the redeemable common stock in the weighted
average shares outstanding for the entire period.
|
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