[December 13, 2017] |
|
Tintri Reports Third Quarter Fiscal 2018 Financial Results
Tintri, Inc. (NASDAQ: TNTR), a leading enabler of enterprise cloud,
today reported results for its third quarter fiscal 2018 ended October
31, 2017.
"We made progress in the quarter by expanding our differentiated
technology portfolio with two new all-flash product lines and software
that integrates our products with leading public cloud storage
solutions. These innovations helped us to increase our footprint with
existing customers. However, we are disappointed with Q3 revenue. The
company was impacted by delayed and reduced purchases by some accounts,
but some of the delayed transactions closed in November," said Ken
Klein, Chairman and CEO at Tintri. "Despite the lower revenue, we saw
improvement in our gross margin and our non-GAAP earnings per share met
consensus expectations. We are exploring strategic options available to
the company to deliver value to our stockholders, including retaining
investment bank advisors to assist us in this process and optimizing our
operating model to reduce our cash burn rate and shorten the time to
generate positive cash flow."
Q3 Key Quarterly and Year-to-Date Business and Financial Highlights
-
Quarterly revenue: $31.8 million, down 6% year-over-year, and
year-to-date revenue: $97.0 million, up 15% year-over-year.
-
Gross margin increased sequentially 300 basis points to 59.5% GAAP,
and 170 basis points to 61.7% non-GAAP.
-
Quarterly net loss per share: ($1.21) per share GAAP, and ($0.79) per
share non-GAAP, within the company's guidance range.
-
Launched Tintri EC6000 all-flash series for enterprises and the T1000
for remote office and departmental use cases.
-
Announced Tintri Cloud Connector to integrate Tintri on-premises with
AWS S3 and IBM Cloud Object Storage public cloud.
-
Named visionary in the Gartner Magic Quadrant for General-Purpose Disk
Arrays for the fourth year in a row.
-
New customers: added new enterprise and CSP customers, increasing
total customer count to over 1,490.
-
Customers spending more than $1M lifetime-to-date increased 59%
year-over-year.
Third Quarter Fiscal 2018 Financial Highlights
The following tables summarize our consolidated financial results for
the fiscal quarters and nine-months ended October 31, 2016, and October
31, 2017 (unaudited):
|
GAAP Quarterly Financial Information
|
(in millions, except percentages and per share data)
|
|
Three Months Ended October 31, 2016
|
|
|
Three Months Ended October 31, 2017
|
|
|
Year- over-Year Change
|
|
|
Nine Months Ended October 31, 2016
|
|
|
Nine Months Ended October 31, 2017
|
|
|
Year- over-Year Change
|
Revenue
|
|
$33.9
|
|
|
$31.8
|
|
|
-6%
|
|
|
$84.3
|
|
|
$97.0
|
|
|
15%
|
Gross Profit
|
|
$22.5
|
|
|
$18.9
|
|
|
($3.6)
|
|
|
$55.2
|
|
|
$57.0
|
|
|
$1.8
|
Gross Margin
|
|
66.5%
|
|
|
59.5%
|
|
|
-7 ppts
|
|
|
65.5%
|
|
|
58.8%
|
|
|
-6.7 ppts
|
Operating Loss
|
|
($22.5)
|
|
|
($35.8)
|
|
|
($13.3)
|
|
|
($76.5)
|
|
|
($114.2)
|
|
|
($37.7)
|
Operating Margin
|
|
-66.4%
|
|
|
-112.5%
|
|
|
-46.1 ppts
|
|
|
-90.7%
|
|
|
-117.7%
|
|
|
-27 ppts
|
Net Loss
|
|
($23.8)
|
|
|
($37.9)
|
|
|
($14.1)
|
|
|
($80.3)
|
|
|
($120.3)
|
|
|
($40.0)
|
Net Loss Attributable to Common Stockholders
|
|
($23.8)
|
|
|
($37.9)
|
|
|
($14.1)
|
|
|
($80.3)
|
|
|
($100.5)
|
|
|
($20.2)
|
Net Loss per Share Attributable to Common Stockholders
|
|
($6.87)
|
|
|
($1.21)
|
|
|
$5.66
|
|
|
($23.52)
|
|
|
($6.33)
|
|
|
$17.19
|
Weighted-Average Shares (Basic and Diluted)
|
|
3.5
|
|
|
31.3
|
|
|
27.8
|
|
|
3.4
|
|
|
15.9
|
|
|
12.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Quarterly Financial Information
|
(in millions, except percentages and per share data)
|
|
Three Months Ended October 31, 2016
|
|
|
Three Months Ended October 31, 2017
|
|
|
Year- over-Year Change
|
|
|
Nine Months Ended October 31, 2016
|
|
|
Nine Months Ended October 31, 2017
|
|
|
Year- over-Year Change
|
Gross Margin
|
|
66.9%
|
|
|
61.7%
|
|
|
-5.2 ppts
|
|
|
66.0%
|
|
|
61.0%
|
|
|
-5 ppts
|
Operating Loss
|
|
($19.2)
|
|
|
($22.5)
|
|
|
($3.3)
|
|
|
($65.8)
|
|
|
($73.3)
|
|
|
($7.5)
|
Operating Margin
|
|
-56.6%
|
|
|
-71.0%
|
|
|
-14.4 ppts
|
|
|
-78.0%
|
|
|
-75.5%
|
|
|
2.5 ppts
|
Net Loss
|
|
($20.5)
|
|
|
($24.7)
|
|
|
($4.2)
|
|
|
($69.4)
|
|
|
($79.3)
|
|
|
($9.9)
|
Net Loss per Share
|
|
($0.95)
|
|
|
($0.79)
|
|
|
$0.16
|
|
|
($3.24)
|
|
|
($2.86)
|
|
|
$0.38
|
Weighted-Average Shares (Basic and Diluted)
|
|
21.5
|
|
|
31.3
|
|
|
9.8
|
|
|
21.4
|
|
|
27.8
|
|
|
6.4
|
Free Cash Flow
|
|
($19.8)
|
|
|
($32.2)
|
|
|
($12.4)
|
|
|
($61.6)
|
|
|
($75.7)
|
|
|
($14.1)
|
Free Cash Flow % of Revenue
|
|
-58.4%
|
|
|
-101.4%
|
|
|
-43 ppts
|
|
|
-73.1%
|
|
|
-78.1%
|
|
|
-5 ppts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation between GAAP and non-GAAP information is provided at
the end of this release.
Fourth Quarter Fiscal 2018 Financial Outlook
As we look ahead, we are providing the following outlook for the quarter
ending January 31, 2018. We expect:
-
Revenue in the range of $25 to $27 million;
-
Non-GAAP loss per share in the range of ($0.79) to ($0.83), using 31.4
million weighted-average shares outstanding.
All forward-looking non-GAAP financial measures contained in this
section titled "Fourth Quarter Fiscal 2018 Financial Outlook" exclude
stock-based compensation expense, payroll tax expense related to
stock-based activities, legal fees related to securities lawsuits, and,
as applicable, other special items. We have not reconciled guidance for
non-GAAP loss per share to its most directly comparable GAAP measure
because the items that have been excluded are uncertain and cannot be
reasonably predicted. Accordingly, a reconciliation of the non-GAAP
financial measure guidance to the corresponding GAAP measures is not
available without unreasonable effort.
Conference Call and Webcast
Tintri is hosting a conference call for analysts and investors to
discuss its third quarter fiscal 2018 results and outlook for its fourth
quarter at 2:00 p.m. Pacific Time today, December 13, 2017. Participants
can listen in via webcast by visiting the Investor Relations section of
Tintri's website at ir.tintri.com.
Please go to the website at least 15 minutes early to register,
download, and install any necessary audio software. A replay of the
webcast will be available for 7 days after the call. The conference call
can also be accessed by dialing 1-844-379-5957 or +1-209-905-5964 and
using the conference ID 5868359. Following the call, an audio replay
will also be available by calling 1-855-859-2056 or +1-404-537-3406 and
entering the conference ID 5868359. The audio replay will be available
through 5:00 p.m. Pacific Time on December 20, 2017.
Forward-Looking Statements
This press release contains forward-looking statements, including but
not limited to statements relating to our exploration of strategic
options, the continued availability of customer transactions that failed
to close in Q3, estimated revenues and non-GAAP loss per share for
future fiscal periods, our competitive position and environment, sales
trends, and product releases. These forward-looking statements are not
historical facts, and instead are based on our current expectations,
estimates, opinions, and beliefs. Consequently, you should not rely on
these forward-looking statements. The accuracy of such forward-looking
statements depends upon future events, and involves risks,
uncertainties, and other factors beyond our control that may cause these
statements to be inaccurate and cause our actual results, performance,
or achievements to differ materially and adversely from those
anticipated or implied by such statements, including, among others: the
availability and timing of, and our ability to execute on, potential
strategic options; the rapid evolution of the markets in which we
compete; our ability to sustain or manage future growth effectively;
factors that could result in the significant fluctuation of our future
quarterly operating results, including, among other things, our revenue
mix, the timing and magnitude of orders, shipments and acceptance of our
solutions in any given quarter, our ability to attract new and retain
existing end-customers, changes in the pricing of certain components of
our solutions, and fluctuations in demand and competitive pricing
pressures for our solutions; the introduction or acceleration of
adoption of competing solutions; failure to develop, or unexpected
difficulties or delays in developing, new product features or technology
on a timely or cost-effective basis; and other risks and uncertainties
included under the captions "Risk Factors" and "Management's Discussion
and Analysis of Financial Condition and Results of Operations" in our
reports on file with the U.S. Securities and Exchange Commission
("SEC"), which are available on our investor relations website at https://ir.tintri.com
and on the SEC website at www.sec.gov,
or that we may file with the SEC following the date of this press
release, including our Quarterly Report on Form 10-Q for the quarter
ended July 31, 2017. All statements provided in this release speak only
as of the date of this press release and, except as required by law, we
assume no obligation to update any forward-looking statements to reflect
actual results or subsequent events or circumstances.
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, which are
prepared and presented in accordance with GAAP, we use the following
non-GAAP financial measures and other key performance measures: non-GAAP
gross profit, non-GAAP gross margin, non-GAAP operating expenses,
non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss,
non-GAAP net loss per share, pro forma non-GAAP net loss per share, free
cash flow, and free cash flow as a percentage of revenue. In computing
these non-GAAP financial measures, we exclude the effects of certain
items such as stock-based compensation expense, restructuring charges,
legal fees related to securities lawsuits and other one-off activities,
IPO-related expenses not netted against IPO proceeds, deemed dividend to
Series E and E-1 Convertible Preferred Stock, adjustment to Series E,
E-1, and F Convertible Preferred Stock related to our IPO, and income
tax-related impact. Free cash flow is a performance measure that our
management believes provides useful information to management and
investors about the amount of cash generated by the business after
necessary capital expenditures, and we define free cash flow as net cash
used in operating activities less purchases of property and equipment.
The presentation of this financial information is not intended to be
considered in isolation or as a substitute for, or superior to, the
financial information prepared and presented in accordance with GAAP. We
use these non-GAAP financial measures and key performance measures for
financial and operational decision-making and as a means to evaluate
period-to-period comparisons. Our management believes that these
non-GAAP financial measures and key performance measures provide
meaningful supplemental information regarding our performance and
liquidity by excluding certain expenses and expenditures such as
stock-based compensation expense that may not be indicative of our
ongoing core business operating results. We believe that both management
and investors benefit from referring to these non-GAAP financial
measures in assessing our performance and when analyzing historical
performance and liquidity, and planning, forecasting, and analyzing
future periods. However, these non-GAAP financial and key performance
measures have limitations as analytical tools, and you should not
consider them in isolation or as substitutes for analysis of our results
as reported under GAAP. Non-GAAP gross profit, non-GAAP gross margin,
non-GAAP operating expenses, non-GAAP operating loss, non-GAAP operating
margin, non-GAAP net loss, non-GAAP net loss per share, pro forma
non-GAAP net loss per share, and free cash flow are not substitutes for
gross profit, gross margin, operating expenses, loss from operations,
operating margin, net loss or net loss attributable to common
stockholders, net loss per share or net loss per share attributable to
common stockholders, net loss per share or net loss per share
attributable to common stockholders, or net cash used in operating
activities, respectively. In addition, other companies, including
companies in our industry, may calculate non-GAAP financial measures and
key performance measures differently or may use other measures to
evaluate their performance, all of which could reduce the usefulness of
our non-GAAP financial measures and key performance measures as tools
for comparison. We urge you to review the reconciliation of our non-GAAP
financial measures and key performance measures to the most directly
comparable GAAP financial measures included below in the tables
captioned "Reconciliation of GAAP to Non-GAAP Profit Measures," and
"Reconciliation of GAAP Net Cash Used In Operating Activities to
Non-GAAP Free Cash Flow," and not to rely on any single financial
measure to evaluate our business.
About Tintri
Tintri (NASDAQ: TNTR) offers an enterprise cloud infrastructure built on
a public cloud-like web services architecture and RESTful APIs.
Organizations use Tintri all-flash storage with scale-out and automation
as a foundation for their own clouds-to build agile development
environments for cloud native applications and to run mission critical
enterprise applications. Tintri enables users to guarantee the
performance of their applications, automate common IT tasks to reduce
operating expenses, troubleshoot across their infrastructure, and
predict an organization's needs to scale-the underpinnings of a modern
data center. That's why leading cloud service providers and enterprises,
including Comcast, Chevron, NASA, Toyota, United Healthcare and 20% of
the Fortune 100 companies, trust Tintri with enterprise cloud. For more
information, visit www.tintri.com
and follow us on Twitter: @Tintri. Tintri has used, and intends to
continue to use, its Investor Relations website and the Twitter account
of @Tintri as means of disclosing material non-public information and
for complying with its disclosure obligations under Regulation FD.
© 2017 Tintri, Inc. All rights reserved. Tintri and the Tintri logo are
registered trademarks or trademarks of Tintri, Inc. in the United States
and other countries. Other brand names mentioned herein are for
identification purposes only and may be trademarks of their respective
holder(s).
|
|
|
|
|
TINTRI, INC.
|
Condensed Consolidated Balance Sheets
|
(in thousands, unaudited)
|
|
|
|
As of January 31,
|
|
As of October 31,
|
|
|
2017
|
|
2017
|
Assets
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
48,048
|
|
|
$
|
48,899
|
|
Short-term investments
|
|
|
-
|
|
|
|
5,994
|
|
Accounts receivable, net
|
|
|
30,749
|
|
|
|
21,161
|
|
Inventories, net
|
|
|
6,509
|
|
|
|
6,958
|
|
Prepaid and other current assets
|
|
|
6,202
|
|
|
|
4,698
|
|
Total current assets
|
|
|
91,508
|
|
|
|
87,710
|
|
Property and equipment, net
|
|
|
10,410
|
|
|
|
10,223
|
|
Other long-term assets
|
|
|
2,984
|
|
|
|
3,011
|
|
Total assets
|
|
$
|
104,902
|
|
|
$
|
100,944
|
|
Liabilities, Convertible Preferred Stock and Stockholders' Deficit
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$
|
15,674
|
|
|
$
|
15,424
|
|
Accrued and other current liabilities
|
|
|
20,668
|
|
|
|
18,417
|
|
Deferred revenue, current
|
|
|
28,056
|
|
|
|
31,414
|
|
Long-term debt, current portion
|
|
|
-
|
|
|
|
18,962
|
|
Total current liabilities
|
|
|
64,398
|
|
|
|
84,217
|
|
Deferred revenue, non-current
|
|
|
28,389
|
|
|
|
30,366
|
|
Long-term debt
|
|
|
48,914
|
|
|
|
49,607
|
|
Other long-term liabilities
|
|
|
5,041
|
|
|
|
5,150
|
|
Total liabilities
|
|
|
146,742
|
|
|
|
169,340
|
|
Commitments and contingencies
|
|
|
|
|
Convertible preferred stock
|
|
|
257,141
|
|
|
|
-
|
|
Stockholders' deficit:
|
|
|
|
|
Common stock
|
|
|
1
|
|
|
|
2
|
|
Additional paid-in capital
|
|
|
41,745
|
|
|
|
373,126
|
|
Notes receivables from stockholders
|
|
|
(1,544
|
)
|
|
|
(747
|
)
|
Accumulated other comprehensive loss
|
|
|
(466
|
)
|
|
|
(325
|
)
|
Accumulated deficit
|
|
|
(338,717
|
)
|
|
|
(439,241
|
)
|
Treasury stock
|
|
|
-
|
|
|
|
(1,211
|
)
|
Total stockholders' deficit
|
|
|
(298,981
|
)
|
|
|
(68,396
|
)
|
Total liabilities, convertible preferred stock and stockholders'
deficit
|
|
$
|
104,902
|
|
|
$
|
100,944
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TINTRI, INC.
|
Condensed Consolidated Statements of Operations
|
(in thousands, except share and per share data, unaudited)
|
|
|
|
Three Months Ended October 31,
|
|
Nine Months Ended October 31,
|
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
Revenue:
|
|
|
|
|
|
|
|
|
Product
|
|
$
|
26,871
|
|
|
$
|
22,758
|
|
|
$
|
64,316
|
|
|
$
|
71,474
|
|
Support and maintenance
|
|
|
7,046
|
|
|
|
9,014
|
|
|
|
20,033
|
|
|
|
25,519
|
|
Total revenue
|
|
|
33,917
|
|
|
|
31,772
|
|
|
|
84,349
|
|
|
|
96,993
|
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
Product
|
|
|
8,953
|
|
|
|
9,757
|
|
|
|
22,049
|
|
|
|
30,136
|
|
Support and maintenance
|
|
|
2,424
|
|
|
|
3,095
|
|
|
|
7,064
|
|
|
|
9,816
|
|
Total cost of revenue
|
|
|
11,377
|
|
|
|
12,852
|
|
|
|
29,113
|
|
|
|
39,952
|
|
Gross profit:
|
|
|
|
|
|
|
|
|
Product
|
|
|
17,918
|
|
|
|
13,001
|
|
|
|
42,267
|
|
|
|
41,338
|
|
Support and maintenance
|
|
|
4,622
|
|
|
|
5,919
|
|
|
|
12,969
|
|
|
|
15,703
|
|
Total gross profit
|
|
|
22,540
|
|
|
|
18,920
|
|
|
|
55,236
|
|
|
|
57,041
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
13,227
|
|
|
|
17,287
|
|
|
|
39,875
|
|
|
|
55,290
|
|
Sales and marketing
|
|
|
27,862
|
|
|
|
28,435
|
|
|
|
77,324
|
|
|
|
88,484
|
|
General and administrative
|
|
|
3,955
|
|
|
|
8,061
|
|
|
|
14,541
|
|
|
|
26,564
|
|
Restructuring charges
|
|
|
-
|
|
|
|
890
|
|
|
|
-
|
|
|
|
890
|
|
Total operating expenses
|
|
|
45,044
|
|
|
|
54,673
|
|
|
|
131,740
|
|
|
|
171,228
|
|
Loss from operations
|
|
|
(22,504
|
)
|
|
|
(35,753
|
)
|
|
|
(76,504
|
)
|
|
|
(114,187
|
)
|
Other expense, net:
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(1,231
|
)
|
|
|
(2,170
|
)
|
|
|
(4,044
|
)
|
|
|
(6,242
|
)
|
Other income, net
|
|
|
54
|
|
|
|
130
|
|
|
|
735
|
|
|
|
585
|
|
Total other expense, net
|
|
|
(1,177
|
)
|
|
|
(2,040
|
)
|
|
|
(3,309
|
)
|
|
|
(5,657
|
)
|
Loss before provision for income taxes
|
|
|
(23,681
|
)
|
|
|
(37,793
|
)
|
|
|
(79,813
|
)
|
|
|
(119,844
|
)
|
Provision for income taxes
|
|
|
89
|
|
|
|
132
|
|
|
|
440
|
|
|
|
428
|
|
Net loss
|
|
$
|
(23,770
|
)
|
|
$
|
(37,925
|
)
|
|
$
|
(80,253
|
)
|
|
$
|
(120,272
|
)
|
Deemed dividend to Series E and E-1 Convertible Preferred Stock
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
(6,588
|
)
|
Impact of adjustment to Series E, E-1 and F Convertible Preferred
Stock
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
26,336
|
|
Net loss attributable to common stockholders
|
|
$
|
(23,770
|
)
|
|
$
|
(37,925
|
)
|
|
$
|
(80,253
|
)
|
|
$
|
(100,524
|
)
|
Net loss per share attributable to common stockholders- basic and
diluted
|
|
$
|
(6.87
|
)
|
|
$
|
(1.21
|
)
|
|
$
|
(23.52
|
)
|
|
$
|
(6.33
|
)
|
Weighted-average shares used in computing net loss per share
attributable to common stockholders-basic and diluted
|
|
|
3,459,860
|
|
|
|
31,291,513
|
|
|
|
3,412,447
|
|
|
|
15,873,071
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TINTRI, INC.
|
Condensed Consolidated Statements of Cash Flows
|
(in thousands, unaudited)
|
|
|
|
Nine Months Ended October 31,
|
|
|
2016
|
|
2017
|
Cash flows from operating activities:
|
|
|
|
|
Net loss
|
|
$
|
(80,253
|
)
|
|
$
|
(120,272
|
)
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
Depreciation and amortization
|
|
|
7,137
|
|
|
|
5,330
|
|
Stock-based compensation expense
|
|
|
10,742
|
|
|
|
37,770
|
|
Excess tax benefit from stock-based compensation
|
|
|
47
|
|
|
|
-
|
|
Accretion of balloon payment
|
|
|
501
|
|
|
|
1,221
|
|
Amortization of debt issuance cost, credit facility fees and debt
discounts
|
|
|
230
|
|
|
|
172
|
|
Restructuring charges
|
|
|
-
|
|
|
|
(940
|
)
|
Other
|
|
|
(27
|
)
|
|
|
(13
|
)
|
Changes in operating assets and liabilities:
|
|
|
|
|
Accounts receivable
|
|
|
(4,132
|
)
|
|
|
9,588
|
|
Inventories
|
|
|
(1,352
|
)
|
|
|
(449
|
)
|
Prepaid expenses and other assets
|
|
|
(1,436
|
)
|
|
|
(659
|
)
|
Payment of offering costs
|
|
|
(2,113
|
)
|
|
|
(3,892
|
)
|
Accounts payable
|
|
|
4,462
|
|
|
|
(1,859
|
)
|
Deferred revenue
|
|
|
7,710
|
|
|
|
5,335
|
|
Accrued and other liabilities
|
|
|
280
|
|
|
|
(2,943
|
)
|
Net cash used in operating activities
|
|
|
(58,204
|
)
|
|
|
(71,611
|
)
|
Cash flows from investing activities:
|
|
|
|
|
Purchase of property and equipment
|
|
|
(3,431
|
)
|
|
|
(4,100
|
)
|
Purchase of investments
|
|
|
(13,807
|
)
|
|
|
(11,513
|
)
|
Proceeds from maturities of investments
|
|
|
66,692
|
|
|
|
5,519
|
|
Net cash provided by (used in) investing activities
|
|
|
49,454
|
|
|
|
(10,094
|
)
|
Cash flows from financing activities:
|
|
|
|
|
Payment on capital lease financing
|
|
|
(178
|
)
|
|
|
(216
|
)
|
Proceeds from revolving line of credit
|
|
|
6,962
|
|
|
|
5,000
|
|
Proceeds from term loan
|
|
|
-
|
|
|
|
15,000
|
|
Proceeds from initial public offering, net of underwriting discounts
and commissions
|
|
|
-
|
|
|
|
62,314
|
|
Proceeds from repayment of employee notes receivable
|
|
|
101
|
|
|
|
-
|
|
Proceeds from exercise of stock options
|
|
|
1,459
|
|
|
|
470
|
|
Net cash provided by financing activities
|
|
|
8,344
|
|
|
|
82,568
|
|
Foreign exchange impact on cash and cash equivalents
|
|
|
(48
|
)
|
|
|
(12
|
)
|
Net increase (decrease) in cash and cash equivalents
|
|
|
(454
|
)
|
|
|
851
|
|
Cash and cash equivalents, beginning of period
|
|
|
50,716
|
|
|
|
48,048
|
|
Cash and cash equivalents, end of period
|
|
$
|
50,262
|
|
|
$
|
48,899
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Profit Measures
|
(in thousands, except share and per share data)
|
|
|
GAAP
|
|
Non-GAAP Adjustments
|
|
Non-GAAP
|
|
|
Three Months Ended October 31, 2016
|
|
Stock-based compensation
|
|
Income tax effect on non- GAAP adjustments
|
|
Three Months Ended October 31, 2016
|
Gross profit
|
|
22,540
|
|
|
139
|
|
|
|
|
22,679
|
|
Gross margin
|
|
66.5
|
%
|
|
|
|
|
|
66.9
|
%
|
Operating expenses
|
|
|
|
|
|
|
|
|
Research and development
|
|
13,227
|
|
|
(1,230
|
)
|
|
|
|
11,997
|
|
Sales and marketing
|
|
27,862
|
|
|
(959
|
)
|
|
|
|
26,903
|
|
General and administrative
|
|
3,955
|
|
|
(973
|
)
|
|
|
|
2,982
|
|
Total operating expenses
|
|
45,044
|
|
|
(3,162
|
)
|
|
|
|
41,882
|
|
Loss from operations
|
|
(22,504
|
)
|
|
3,301
|
|
|
|
|
(19,203
|
)
|
Operating margin
|
|
-66.4
|
%
|
|
|
|
|
|
-56.6
|
%
|
|
|
|
|
|
|
|
|
|
Net loss attributable to common stockholders
|
|
(23,770
|
)
|
|
3,301
|
|
|
(15
|
)
|
|
(20,484
|
)
|
|
|
|
|
|
|
|
|
|
Net loss per share attributable to common stockholders, basic and
diluted
|
|
(6.87
|
)
|
|
|
|
|
|
|
Pro forma net loss per share, basic and diluted
|
|
(1.11
|
)
|
|
0.16
|
|
|
-
|
|
|
(0.95
|
)
|
|
|
|
|
|
|
|
|
|
Weighted-shares outstanding, basic and diluted
|
|
3,459,860
|
|
|
|
|
|
|
3,459,860
|
|
Pro forma adjustment (1)
|
|
17,992,973
|
|
|
|
|
|
|
17,992,973
|
|
Pro forma weighted-shares outstanding, basic and diluted
|
|
21,452,833
|
|
|
|
|
|
|
21,452,833
|
|
|
|
|
|
|
|
|
|
|
(1) To reflect assumed conversion of convertible preferred stock as
of the beginning of the period
|
|
|
Reconciliation of GAAP to Non-GAAP Profit Measures
|
(in thousands, except share and per share data)
|
|
|
GAAP
|
|
Non-GAAP Adjustments
|
|
Non-GAAP
|
|
|
Three Months Ended October 31, 2017
|
|
Stock-based compensation
|
|
Other non-GAAP adjustments (1)
|
|
Income tax effect on non-GAAP adjustments
|
|
Three Months Ended October 31, 2017
|
Gross profit
|
|
18,920
|
|
|
692
|
|
|
|
|
|
|
19,612
|
|
Gross margin
|
|
59.5
|
%
|
|
|
|
|
|
|
|
61.7
|
%
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
17,287
|
|
|
(5,116
|
)
|
|
-
|
|
|
|
|
12,171
|
|
Sales and marketing
|
|
28,435
|
|
|
(2,468
|
)
|
|
-
|
|
|
|
|
25,967
|
|
General and administrative
|
|
8,061
|
|
|
(3,576
|
)
|
|
(463
|
)
|
|
|
|
4,022
|
|
Restructuring charges
|
|
890
|
|
|
|
|
(890
|
)
|
|
|
|
-
|
|
Total operating expenses
|
|
54,673
|
|
|
(11,160
|
)
|
|
(1,353
|
)
|
|
|
|
42,160
|
|
Loss from operations
|
|
(35,753
|
)
|
|
11,852
|
|
|
1,353
|
|
|
|
|
(22,548
|
)
|
Operating margin
|
|
-112.5
|
%
|
|
|
|
|
|
|
|
-71.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to common stockholders
|
|
(37,925
|
)
|
|
11,852
|
|
|
1,353
|
|
|
2
|
|
(24,718
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share attributable to common stockholders, basic and
diluted
|
|
(1.21
|
)
|
|
0.38
|
|
|
0.04
|
|
|
-
|
|
(0.79
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-shares outstanding, basic and diluted
|
|
31,291,513
|
|
|
|
|
|
|
|
|
31,291,513
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Restructuring charges, legal fees related to securities lawsuits
and other one-off activities, and IPO-related expenses not netted
against IPO proceeds.
|
|
|
Reconciliation of GAAP to Non-GAAP Profit Measures
|
(in thousands, except share and per share data)
|
|
|
GAAP
|
|
Non-GAAP Adjustments
|
|
Non-GAAP
|
|
|
Nine Months Ended October 31, 2016
|
|
Stock-based compensation
|
|
Income tax effect on non- GAAP adjustments
|
|
Nine Months Ended October 31, 2016
|
Gross profit
|
|
55,236
|
|
|
440
|
|
|
|
|
55,676
|
|
Gross margin
|
|
65.5
|
%
|
|
|
|
|
|
66.0
|
%
|
Operating expenses
|
|
|
|
|
|
|
|
|
Research and development
|
|
39,875
|
|
|
(4,090
|
)
|
|
|
|
35,785
|
|
Sales and marketing
|
|
77,324
|
|
|
(3,209
|
)
|
|
|
|
74,115
|
|
General and administrative
|
|
14,541
|
|
|
(3,003
|
)
|
|
|
|
11,538
|
|
Total operating expenses
|
|
131,740
|
|
|
(10,302
|
)
|
|
|
|
121,438
|
|
Loss from operations
|
|
(76,504
|
)
|
|
10,742
|
|
|
|
|
(65,762
|
)
|
Operating margin
|
|
-90.7
|
%
|
|
|
|
|
|
-78.0
|
%
|
|
|
|
|
|
|
|
|
|
Net loss attributable to common stockholders
|
|
(80,253
|
)
|
|
10,742
|
|
|
81
|
|
(69,430
|
)
|
|
|
|
|
|
|
|
|
|
Net loss per share attributable to common stockholders, basic and
diluted
|
|
(23.52
|
)
|
|
|
|
|
|
|
Pro forma net loss per share, basic and diluted
|
|
(3.75
|
)
|
|
0.51
|
|
|
-
|
|
(3.24
|
)
|
|
|
|
|
|
|
|
|
|
Weighted-shares outstanding, basic and diluted
|
|
3,412,447
|
|
|
|
|
|
|
3,412,447
|
|
Pro forma adjustment (1)
|
|
17,992,973
|
|
|
|
|
|
|
17,992,973
|
|
Pro forma weighted-shares outstanding, basic and diluted
|
|
21,405,420
|
|
|
|
|
|
|
21,405,420
|
|
|
|
|
|
|
|
|
|
|
(1) To reflect assumed conversion of convertible preferred stock as
of the beginning of the period
|
|
|
Reconciliation of GAAP to Non-GAAP Profit Measures
|
(in thousands, except share and per share data)
|
|
|
GAAP
|
|
Non-GAAP Adjustments
|
|
Non-GAAP
|
|
|
Nine Months Ended October 31, 2017
|
|
Stock-based compensation
|
|
Other non-GAAP adjustments (1)
|
|
Income tax effect on non-GAAP adjustments
|
|
Nine Months Ended October 31, 2017
|
Gross profit
|
|
57,041
|
|
|
2,106
|
|
|
|
|
|
|
59,147
|
|
Gross margin
|
|
58.8
|
%
|
|
|
|
|
|
|
|
61.0
|
%
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
55,290
|
|
|
(14,772
|
)
|
|
(20
|
)
|
|
|
|
40,498
|
|
Sales and marketing
|
|
88,484
|
|
|
(8,150
|
)
|
|
(984
|
)
|
|
|
|
79,350
|
|
General and administrative
|
|
26,564
|
|
|
(12,742
|
)
|
|
(1,268
|
)
|
|
|
|
12,554
|
|
Restructuring charges
|
|
890
|
|
|
|
|
(890
|
)
|
|
|
|
-
|
|
Total operating expenses
|
|
171,228
|
|
|
(35,664
|
)
|
|
(3,162
|
)
|
|
|
|
132,402
|
|
Loss from operations
|
|
(114,187
|
)
|
|
37,770
|
|
|
3,162
|
|
|
|
|
(73,255
|
)
|
Operating margin
|
|
-117.7
|
%
|
|
|
|
|
|
|
|
-75.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
(120,272
|
)
|
|
37,770
|
|
|
3,162
|
|
|
28
|
|
(79,312
|
)
|
Deemed dividend
|
|
(6,588
|
)
|
|
|
|
6,588
|
|
|
|
|
-
|
|
Net loss adjustment (2)
|
|
26,336
|
|
|
|
|
(26,336
|
)
|
|
|
|
-
|
|
Net loss attributable to common stockholders
|
|
(100,524
|
)
|
|
37,770
|
|
|
(16,586
|
)
|
|
28
|
|
(79,312
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share attributable to common stockholders, basic and
diluted
|
|
(6.33
|
)
|
|
|
|
|
|
|
|
|
Pro forma net loss per share attributable to common stockholders,
basic and diluted
|
|
(3.62
|
)
|
|
1.36
|
|
|
(0.60
|
)
|
|
-
|
|
(2.86
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-shares outstanding, basic and diluted
|
|
15,873,071
|
|
|
|
|
|
|
|
|
15,873,071
|
|
Pro forma adjustment (3)
|
|
11,892,693
|
|
|
|
|
|
|
|
|
11,892,693
|
|
Pro forma weighted-shares outstanding, basic and diluted
|
|
27,765,764
|
|
|
|
|
|
|
|
|
27,765,764
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Restructuring charges, legal fees related to securities lawsuits
and other one-off activities, IPO-related expenses not netted
against IPO proceeds, and deemed dividend to Series E and E-1
Convertible Preferred Stock.
|
(2) Adjustment to Series E, E-1, and F Convertible Preferred Stock
related to IPO.
|
(3) To reflect assumed conversion of convertible preferred stock as
of beginning of the year, and IPO shares as of the beginning of Q2.
|
|
|
Reconciliation of GAAP Net Cash Used In Operating Activities to
Non-GAAP Free Cash Flow
|
(in thousands)
|
|
|
Three Months Ended October 31, 2016
|
|
|
Three Months Ended October 31, 2017
|
|
|
Nine Months Ended October 31, 2016
|
|
|
Nine Months Ended October 31, 2017
|
Net cash used in operating activities
|
|
(18,692)
|
|
|
(30,156)
|
|
|
(58,204)
|
|
|
(71,611)
|
Less: Purchase of property and equipment
|
|
(1,100)
|
|
|
(2,046)
|
|
|
(3,431)
|
|
|
(4,100)
|
Free cash flow
|
|
(19,792)
|
|
|
(32,202)
|
|
|
(61,635)
|
|
|
(75,711)
|
Free cash flow % revenue
|
|
-58.4%
|
|
|
-101.4%
|
|
|
-73.1%
|
|
|
-78.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20171213006040/en/
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