| [February 08, 2018] |
 |
Medidata Reports Record Full-Year and Fourth Quarter 2017 Results
Medidata
(NASDAQ:MDSO) today announced its financial results for the fourth
quarter and full year 2017 and provided detailed financial guidance for
the full year 2018.
"We had an exceptional year in 2017, driven by strong financial and
operational execution, and the largest increase in total multi-year
subscription backlog in our history," said Tarek Sherif, Medidata's
chairman and chief executive officer. "Medidata's expanding market
opportunity in clinical development is being driven by an explosion of
new potential cures, increasingly complex clinical trials and an
evolving regulatory environment. Our strategy and R&D investments
continue to pay off as we see high demand for our eClinical capabilities
and pioneering analytics, none of which competitors can offer on a
unified platform."
Fourth Quarter 2017 Results
-
Total revenue for the fourth quarter of 2017 was $141.2 million, an
increase of $16.7 million, or 13%, compared with $124.5 million in the
fourth quarter of 2016. Subscription revenue was $119.8 million, an
increase of $13.8 million, or 13%, compared with the same period last
year. Professional services revenue for the fourth quarter of 2017 was
$21.5 million, an increase of $3.0 million, or 16%, compared with
$18.5 million in the fourth quarter of 2016.
-
GAAP gross margin for the fourth quarter of 2017 was 76.8%, up 60
basis points compared with 76.2% in the fourth quarter of 2016.
-
GAAP operating income for the quarter was $16.5 million, compared with
$17.5 million in the fourth quarter of 2016. Non-GAAP operating income2
for the fourth quarter of 2017 increased to $36.6 million, from $31.9
million a year ago.
-
GAAP operating income margin was 11.7% in the fourth quarter of 2017,
compared with 14.1% in the fourth quarter of 2016. Non-GAAP operating
income margin2 was 25.9% in the fourth quarter of 2017,
compared with 25.7% in the fourth quarter of 2016.
-
GAAP net income for the fourth quarter of 2017 was $13.8 million, or
$0.23 per diluted share, up 27% compared with $10.8 million, or $0.19
per diluted share, in the fourth quarter of 2016. Adjusted non-GAAP
net income2 for the fourth quarter of 2017 was $24.5
million, or $0.41 per diluted share, up 28% compared with $19.2
million, or $0.33 per diluted share, in the fourth quarter of 2016.
See the non-GAAP reconciliation included in this release for full
details of the non-GAAP adjustments.
-
Cash flow from operations was $30.2 million in the fourth quarter of
2017, compared with $40.4 million a year ago.
Full-Year 2017 Results
-
Total revenue for the full-year 2017 was $545.5 million, an increase
of $82.1 million, or 18%, compared with $463.4 million in 2016.
Subscription revenue was $459.5 million, an increase of $65.3 million,
or 17%, over 2016. Professional services revenue for the full-year
2017 was $86.0 million, an increase of $16.9 million, or 24%, compared
with $69.1 million in 2016.
-
GAAP gross margin for the full-year 2017 was 76.8%, up 110 basis
points compared with 75.7% in 2016.
-
GAAP operating income3 for the full-year 2017 was $64.3
million, up 28% compared with $50.2 million in 2016. Non-GAAP
operating income2 for the full-year increased to $131.8
million, up 23% compared with $106.7 million a year ago.
-
GAAP operating income margin was 11.8% in 2017, up 100 basis points
compared with 10.8% in 2016. Non-GAAP operating income margin2
was 24.2% in 2017, up 120 basis points compared with 23.0% in 2016
-
GAAP net income3 for the full-year 2017 was $44.4 million,
or $0.74 per diluted share, up 53% compared with $29.0 million, or
$0.51 per diluted share, in 2016. Adjusted non-GAAP net income2
for the full-year 2017 was $81.7 million, or $1.37 per diluted share,
up 30% compared with $62.8 million, or $1.10 per diluted share, in
2016. See the non-GAAP reconciliation included in this release for
full details of the non-GAAP adjustments.
-
Cash flow from operations was $121.7 million for the full-year 2017,
an increase of $32.9 million, or 37%, compared with $88.8 million in
2016.
-
Total cash, cash equivalents, and marketable securities were $663.3
million at the end of 2017, an increase of $148.1 million, or 29%,
compared with $515.2 million on December 31, 2016.
Additional Highlights:
-
Adjusted 2018 subscription backlog4 as of December 31, 2017
was $480 million, an increase of $76 million, or 19%, compared with
$404 million a year ago. Adjusted subscription backlog, together with
professional services revenue guidance, provides 90% coverage of total
revenue based on the midpoint of our full-year 2018 total revenue
guidance range.
-
Total multi-year subscription backlog1 as of December 31,
2017 was $1,036 million, an increase of $291 million, or 39%, compared
with $745 million a year ago.
-
Revenue retention rate5 remained over 99%.
-
Medidata launched its new Strategic Monitoring suite, which is the
only industry solution designed to both meet and exceed the newest
European regulations for risk management (ICH E6 (R2)). Six enterprise
customers have implemented the new suite. In addition, TESARO, a
leading oncology biopharmaceutical company selected it in the fourth
quarter.
-
Medidata is leading the industry with breakthrough, next-generation
data and analytics innovations. In the fourth quarter, the company's
Synthetic Control offering was recognized with a prestigious SCRIP
Award for Best Technological Development in Clinical Trials - Sponsor
Focused, and named the PM360 Innovation Product of the Year for 2017.
"I am pleased with our performance in 2017. We made solid progress in
building scale and operational strength, and achieved a significant
milestone with over $1 billion in total subscription backlog," said
Rouven Bergmann, Medidata's chief financial officer. "We enter 2018 with
good visibility to achieve our targets. We are confident about our
long-term opportunity creating value for our customers and shareholders."
Financial Outlook
For the full-year 2018, the Company now expects:
-
Total revenue between $624 and $648 million, representing 17%
year-over-year growth6 at the midpoint.
-
Subscription revenue between $531 and $555 million, representing 19%
growth at the midpoint.
-
Professional services revenue of approximately $93 million.
-
GAAP operating income between $63.5 and $73.5 million. Non-GAAP
operating income7, which excludes the impact of
depreciation, amortization of intangible assets, and stock-based
compensation expense, between $157 and $167 million.
-
GAAP net income between $42 and $50 million. Adjusted non-GAAP net
income7, which excludes the impact of stock-based
compensation, non-cash interest expense associated with convertible
senior notes, and amortization, tax-effected at a 25% rate, between
$98.5 and $106.5 million.
-
While changes in the stock price could change the fully diluted share
count, Medidata is assuming 61 million fully diluted shares.
The operating and net income measures above reflect Medidata's non-GAAP
financial guidance and the corresponding GAAP equivalents to its
guidance.
Conference Call
The company plans to host its investor conference call today at 8:00
a.m. Eastern time. The investor conference call will be available via
live webcast on the "Investor" section of Medidata's website at http://investor.mdsol.com.
To participate by telephone, domestic participants may dial 877-303-2528
and international participants may dial 847-829-0023. Those interested
in participating in the conference call should dial in at least 10
minutes prior to the call to register. Participants can also join the
call via a simultaneous live audio webcast, which will be made available
on the "Investor" section of Medidata's website at http://investor.mdsol.com.
A replay of the conference call can be accessed until Thursday, February
22, 2018 by dialing 800-585-8367 domestically or 404-537-3406
internationally, with the passcode 3294637. An archive of the call will
also be hosted on the "Investor" section of Medidata's website, http://investor.mdsol.com,
for a limited period of time.
About Medidata
Medidata's unified platform, pioneering analytics, and unrivaled
expertise power the development of new therapies for over 1,000
pharmaceutical companies, biotech, medical device firms, academic
medical centers and contract research organizations around the world.
The Medidata Clinical Cloud® connects patients, physicians and life
sciences professionals. Companies on the Medidata platform are
individually and collaboratively reinventing the way research is done to
create smarter, more precise treatments. For more information: www.mdsol.com
Cautionary Statement
Certain statements made in this press release are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 that involve significant risks and uncertainties
about Medidata Solutions, Inc. ("Medidata"), including, but not limited
to, statements about Medidata's forecast of financial performance,
products and services, business model, strategy and growth
opportunities, and competitive position. Such statements are subject to
risks and uncertainties that could cause actual performance or results
to differ materially from those expressed in these statements. In
particular, the risks and uncertainties include, among other things,
risks associated with possible fluctuations in our financial and
operating results; errors, interruptions or delays in our service or our
web hosting; integration activities, performance and financial impact of
acquired companies; our ability to continue to release, and gain
customer acceptance of, new and improved versions of our products;
changes in our sales and implementation cycles; competition; our ability
to retain and expand our customer base or increase new business from
those customers; our ability to hire, retain, and motivate our employees
and manage our growth; regulatory developments; litigation; and general
developments in the economy. For additional disclosure regarding these
and other risks faced by Medidata, see disclosures contained in
Medidata's public filings with the Securities and Exchange Commission,
including the "Risk Factors" section of Medidata's Annual Report on Form
10-K for the year ended December 31, 2016. You should consider these
factors in evaluating the forward-looking statements included in this
press release and not place undue reliance on such statements. The
forward-looking statements are made as of the date hereof, and Medidata
undertakes no obligation to update such statements as a result of new
information.
(1) Total multi-year subscription backlog is unadjusted for renewals.
(2) Non-GAAP Financial Information
Medidata provides non-GAAP
operating income, net income, and net income per share applicable to
common stockholders data as additional information for its operating
results. These measures are not in accordance with, or an alternative
for, generally accepted accounting principles and may be different from
non-GAAP measures used by other companies. Non-GAAP operating income
excludes the impact of depreciation, amortization of intangible assets
associated with acquisitions, stock-based compensation expense, wire
transaction recovery, and adjustments to the fair value of contingent
consideration. Adjusted non-GAAP net income excludes the tax-effected
impact of amortization of intangible assets associated with
acquisitions, stock-based compensation expense, non-cash interest
expense, wire transaction recovery, and adjustments to the fair value of
contingent consideration. Management uses these non-GAAP measures to
evaluate its financial results, develop budgets, manage expenditures,
and as an important factor in determining variable compensation. In
addition, investors frequently have requested information from
management regarding depreciation, amortization, and other non-cash
charges, such as share-based compensation, and management believes,
based on discussions with investors, that these non-GAAP measures
enhance investors' ability to assess Medidata's historical and projected
future financial performance. While management believes these non-GAAP
financial measures provide useful supplemental information to investors,
there are limitations associated with the use of non-GAAP financial
measures. One limitation of non-GAAP operating income is that it
excludes depreciation and amortization, which represents the periodic
costs of certain capitalized tangible and intangible assets used in
generating revenues in our business. Medidata compensates for these
limitations by using these non-GAAP financial measures as supplements to
GAAP financial measures and by reviewing the reconciliations of the
non-GAAP financial measures to their most comparable GAAP financial
measures. Investors are encouraged to review the reconciliations of
these non-GAAP financial measures to the comparable GAAP results, which
are attached to this press release.
(3) On September 18, 2014, Medidata discovered that it had been the
subject of a fraud involving the transfer of $4.8 million to an overseas
account. Medidata commenced legal action, alleging that its insurer had
wrongly denied coverage with regard to the loss. On July 21, 2017, the
United States District Court for the Southern District of New York
granted Medidata's motion for summary judgment, and denied the insurer's
motion. In light of this ruling, operating costs and expenses for the
full year ended December 31, 2017 include recognition of the amount that
is probable to be recovered, up to the amount of the originally recorded
loss. Any potential recovery amounts that are in excess of the amount of
the loss, such as interest, have not been recognized.
(4) Adjusted subscription backlog equals subscription backlog plus
outstanding intra-year renewals valued at an amount equal to the
contracts to be renewed.
(5) Revenue retention rate is calculated as the percentage of prior year
revenue attributable to customers retained in the current year.
(6) Growth rates based on 2017 revenue after full retrospective adoption
of Accounting Standards Codification (ASC) 606. Supplemental information
about the anticipated impact of ASC 605 to 606 transition on prior
period results is attached to this press release.
(7) A tabular reconciliation of forward-looking non-GAAP financial
measures to the most comparable forward-looking GAAP measures is
attached to this press release.
|
|
|
MEDIDATA SOLUTIONS, INC.
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
|
|
(Amounts in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Twelve Months Ended December 31,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Subscription
|
|
$
|
119,756
|
|
|
$
|
105,981
|
|
|
$
|
459,528
|
|
|
$
|
394,269
|
|
|
Professional services
|
|
21,461
|
|
|
18,491
|
|
|
86,004
|
|
|
69,112
|
|
|
Total revenues
|
|
141,217
|
|
|
124,472
|
|
|
545,532
|
|
|
463,381
|
|
|
Cost of revenues (1)(2)
|
|
|
|
|
|
|
|
|
|
Subscription
|
|
17,958
|
|
|
16,112
|
|
|
69,235
|
|
|
62,136
|
|
|
Professional services
|
|
14,747
|
|
|
13,544
|
|
|
57,558
|
|
|
50,473
|
|
|
Total cost of revenues
|
|
32,705
|
|
|
29,656
|
|
|
126,793
|
|
|
112,609
|
|
|
Gross profit
|
|
108,512
|
|
|
94,816
|
|
|
418,739
|
|
|
350,772
|
|
|
Operating costs and expenses
|
|
|
|
|
|
|
|
|
|
Research and development (1)
|
|
36,536
|
|
|
28,072
|
|
|
138,564
|
|
|
112,595
|
|
|
Sales and marketing (1)(2)
|
|
31,952
|
|
|
28,434
|
|
|
126,273
|
|
|
109,290
|
|
|
General and administrative (1)
|
|
23,552
|
|
|
20,812
|
|
|
94,324
|
|
|
78,678
|
|
|
Wire transaction recovery (3)
|
|
-
|
|
|
-
|
|
|
(4,770
|
)
|
|
-
|
|
|
Total operating costs and expenses
|
|
92,040
|
|
|
77,318
|
|
|
354,391
|
|
|
300,563
|
|
|
Operating income
|
|
16,472
|
|
|
17,498
|
|
|
64,348
|
|
|
50,209
|
|
|
Interest and other income (expense)
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(4,648
|
)
|
|
(4,758
|
)
|
|
(17,765
|
)
|
|
(17,288
|
)
|
|
Interest income
|
|
1,687
|
|
|
1,573
|
|
|
5,717
|
|
|
4,382
|
|
|
Other (expense) income, net
|
|
(66
|
)
|
|
19
|
|
|
(73
|
)
|
|
11
|
|
|
Total interest and other expense, net
|
|
(3,027
|
)
|
|
(3,166
|
)
|
|
(12,121
|
)
|
|
(12,895
|
)
|
|
Income before income taxes
|
|
13,445
|
|
|
14,332
|
|
|
52,227
|
|
|
37,314
|
|
|
Provision for income taxes
|
|
(323
|
)
|
|
3,492
|
|
|
7,847
|
|
|
8,331
|
|
|
Net income
|
|
$
|
13,768
|
|
|
$
|
10,840
|
|
|
$
|
44,380
|
|
|
$
|
28,983
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.24
|
|
|
$
|
0.19
|
|
|
$
|
0.79
|
|
|
$
|
0.52
|
|
|
Diluted
|
|
$
|
0.23
|
|
|
$
|
0.19
|
|
|
$
|
0.74
|
|
|
$
|
0.51
|
|
|
Weighted average common shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
|
56,724
|
|
|
55,783
|
|
|
56,473
|
|
|
55,492
|
|
|
Diluted
|
|
60,245
|
|
|
57,637
|
|
|
59,765
|
|
|
57,249
|
|
|
(1) Stock-based compensation expense included in cost of revenues
and operating costs and expenses is as follows:
|
|
Cost of revenues
|
|
$
|
1,306
|
|
|
$
|
822
|
|
|
$
|
4,873
|
|
|
$
|
4,425
|
|
|
Research and development
|
|
3,580
|
|
|
2,414
|
|
|
13,314
|
|
|
9,223
|
|
|
Sales and marketing
|
|
1,958
|
|
|
1,725
|
|
|
6,833
|
|
|
7,074
|
|
|
General and administrative
|
|
5,947
|
|
|
5,042
|
|
|
22,793
|
|
|
20,436
|
|
|
Total stock-based compensation
|
|
$
|
12,791
|
|
|
$
|
10,003
|
|
|
$
|
47,813
|
|
|
$
|
41,158
|
|
|
(2) Amortization of intangible assets included in costs of revenues
and operating costs and expenses is as follows:
|
|
Cost of revenues
|
|
$
|
1,094
|
|
|
$
|
314
|
|
|
$
|
3,664
|
|
|
$
|
1,021
|
|
|
Sales and marketing
|
|
120
|
|
|
83
|
|
|
441
|
|
|
276
|
|
|
Total amortization of intangible assets
|
|
$
|
1,214
|
|
|
$
|
397
|
|
|
$
|
4,105
|
|
|
$
|
1,297
|
|
|
(3) Operating costs and expenses for the twelve months ended
December 31, 2017 include the probable insurance recovery of amounts
associated with the previously recognized 2014 wire transaction loss.
|
|
|
|
MEDIDATA SOLUTIONS, INC.
|
|
Reconciliation of GAAP Operating Income and GAAP Net Income to
Non-GAAP Operating Income and Adjusted Non-GAAP Net Income
(Unaudited)
|
|
(Amounts in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Twelve Months Ended December 31,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Operating income:
|
|
|
|
|
|
|
|
|
|
GAAP operating income
|
|
$
|
16,472
|
|
|
$
|
17,498
|
|
|
$
|
64,348
|
|
|
$
|
50,209
|
|
|
GAAP operating margins
|
|
11.7
|
%
|
|
14.1
|
%
|
|
11.8
|
%
|
|
10.8
|
%
|
|
Stock-based compensation
|
|
12,791
|
|
|
10,003
|
|
|
47,813
|
|
|
41,158
|
|
|
Depreciation and amortization
|
|
7,135
|
|
|
4,448
|
|
|
24,053
|
|
|
15,349
|
|
|
Wire transaction recovery (1)
|
|
-
|
|
|
-
|
|
|
(4,770
|
)
|
|
-
|
|
|
Contingent consideration adjustment (2)
|
|
159
|
|
|
-
|
|
|
319
|
|
|
-
|
|
|
Non-GAAP operating income
|
|
$
|
36,557
|
|
|
$
|
31,949
|
|
|
$
|
131,763
|
|
|
$
|
106,716
|
|
|
Non-GAAP operating margins
|
|
25.9
|
%
|
|
25.7
|
%
|
|
24.2
|
%
|
|
23.0
|
%
|
|
Net income:
|
|
|
|
|
|
|
|
|
|
GAAP net income
|
|
$
|
13,768
|
|
|
$
|
10,840
|
|
|
$
|
44,380
|
|
|
$
|
28,983
|
|
|
Stock-based compensation
|
|
12,791
|
|
|
10,003
|
|
|
47,813
|
|
|
41,158
|
|
|
Amortization
|
|
1,214
|
|
|
397
|
|
|
4,105
|
|
|
1,297
|
|
|
Wire transaction recovery (1)
|
|
-
|
|
|
-
|
|
|
(4,770
|
)
|
|
-
|
|
|
Contingent consideration adjustment (2)
|
|
159
|
|
|
-
|
|
|
319
|
|
|
-
|
|
|
Non-cash interest expense (3)
|
|
3,762
|
|
|
3,550
|
|
|
14,706
|
|
|
13,914
|
|
|
Tax impact on add-back items (4)
|
|
(7,170
|
)
|
|
(5,580
|
)
|
|
(24,869
|
)
|
|
(22,548
|
)
|
|
Adjusted non-GAAP net income
|
|
$
|
24,524
|
|
|
$
|
19,210
|
|
|
$
|
81,684
|
|
|
$
|
62,804
|
|
|
GAAP basic earnings per share
|
|
$
|
0.24
|
|
|
$
|
0.19
|
|
|
$
|
0.79
|
|
|
$
|
0.52
|
|
|
GAAP diluted earnings per share
|
|
$
|
0.23
|
|
|
$
|
0.19
|
|
|
$
|
0.74
|
|
|
$
|
0.51
|
|
|
Adjusted Non-GAAP basic earnings per share
|
|
$
|
0.43
|
|
|
$
|
0.34
|
|
|
$
|
1.45
|
|
|
$
|
1.13
|
|
|
Adjusted Non-GAAP diluted earnings per share
|
|
$
|
0.41
|
|
|
$
|
0.33
|
|
|
$
|
1.37
|
|
|
$
|
1.10
|
|
|
|
|
(1) Operating costs and expenses for the twelve months ended
December 31, 2017 include the probable insurance recovery of amounts
associated with the previously recognized 2014 wire transaction
loss. We exclude these amounts for the purposes of calculating
non-GAAP operating income and adjusted non-GAAP net income because
we believe they are not indicative of our continuing operations or
meaningful when comparing current to past results.
|
|
|
|
(2) Amount represents the change in fair value of
acquisition-related contingent consideration liabilities.
|
|
|
|
(3) Non-cash interest expense includes amortization of debt discount
and issuance costs on our 1.00% convertible senior notes issued in
2013 and amortization of issuance costs on our credit agreement
entered into in 2017. We exclude this incremental non-cash interest
expense for purposes of calculating adjusted non-GAAP net income. We
believe that excluding these expenses from our non-GAAP measures is
useful to investors because such incremental non-cash interest
expense does not generate a cash outflow, nor do the debt issuance
costs represent a cash outflow except in the period of issuance;
therefore both are not indicative of our continuing operations.
|
|
|
|
(4) Tax impact calculated using a 40% tax rate.
|
|
|
|
The table above presents a reconciliation of GAAP to non-GAAP
operating income, net income, and net income per share applicable to
common stockholders for the three and twelve months ended December
31, 2017 and 2016. Non-GAAP operating income excludes the impact of
stock-based compensation, depreciation, amortization of intangible
assets associated with acquisitions, wire transaction recovery, and
adjustments to the fair value of contingent consideration. Adjusted
non-GAAP net income excludes the tax-affected impact of stock-based
compensation, amortization of intangible assets associated with
acquisitions, wire transaction recovery, adjustments to the fair
value of contingent consideration, and non-cash interest expense.
|
|
|
|
|
|
MEDIDATA SOLUTIONS, INC.
|
|
CONSOLIDATED BALANCE SHEETS (Unaudited)
|
|
(Amounts in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2017
|
|
2016
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
237,325
|
|
|
$
|
93,519
|
|
|
Marketable securities
|
|
246,967
|
|
|
281,285
|
|
|
Accounts receivable, net of allowance for doubtful accounts of
$1,454 and $1,041, respectively
|
|
110,685
|
|
|
115,216
|
|
|
Prepaid commission expense
|
|
5,352
|
|
|
1,842
|
|
|
Prepaid expenses and other current assets
|
|
37,287
|
|
|
20,382
|
|
|
Deferred income taxes
|
|
-
|
|
|
6,536
|
|
|
Total current assets
|
|
637,616
|
|
|
518,780
|
|
|
Restricted cash
|
|
5,518
|
|
|
5,760
|
|
|
Furniture, fixtures and equipment, net
|
|
88,091
|
|
|
58,461
|
|
|
Marketable securities, long-term
|
|
179,041
|
|
|
140,418
|
|
|
Goodwill
|
|
47,435
|
|
|
30,780
|
|
|
Intangible assets, net
|
|
17,587
|
|
|
5,090
|
|
|
Deferred income taxes, long-term
|
|
40,847
|
|
|
40,415
|
|
|
Other assets
|
|
29,979
|
|
|
18,181
|
|
|
Total assets
|
|
$
|
1,046,114
|
|
|
$
|
817,885
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
5,009
|
|
|
$
|
6,202
|
|
|
Accrued payroll and other compensation
|
|
32,537
|
|
|
29,260
|
|
|
Accrued expenses and other
|
|
31,041
|
|
|
20,958
|
|
|
Deferred revenue
|
|
77,434
|
|
|
75,911
|
|
|
1.00% convertible senior notes, net
|
|
278,094
|
|
|
-
|
|
|
Total current liabilities
|
|
424,115
|
|
|
132,331
|
|
|
Noncurrent liabilities:
|
|
|
|
|
|
1.00% convertible senior notes, net
|
|
-
|
|
|
263,401
|
|
|
Term loan, net
|
|
97,841
|
|
|
-
|
|
|
Deferred revenue, less current portion
|
|
5,256
|
|
|
1,703
|
|
|
Deferred tax liabilities
|
|
99
|
|
|
322
|
|
|
Other long-term liabilities
|
|
21,371
|
|
|
18,138
|
|
|
Total noncurrent liabilities
|
|
124,567
|
|
|
283,564
|
|
|
Total liabilities
|
|
548,682
|
|
|
415,895
|
|
|
Commitments and contingencies
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
Preferred stock, par value $0.01 per share; 5,000 shares authorized,
none issued and outstanding
|
|
-
|
|
|
-
|
|
|
Common stock, par value $0.01 per share; 200,000 shares authorized;
62,801 and 61,393 shares issued; 58,607 and 57,733 shares
outstanding, respectively
|
|
628
|
|
|
614
|
|
|
Additional paid-in capital
|
|
486,147
|
|
|
418,497
|
|
|
Treasury stock, 4,194 and 3,660 shares, respectively
|
|
(132,705
|
)
|
|
(114,204
|
)
|
|
Accumulated other comprehensive loss
|
|
(3,377
|
)
|
|
(5,276
|
)
|
|
Retained earnings
|
|
146,739
|
|
|
102,359
|
|
|
Total stockholders' equity
|
|
497,432
|
|
|
401,990
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
1,046,114
|
|
|
$
|
817,885
|
|
|
|
|
|
|
|
|
|
|
|
|
MEDIDATA SOLUTIONS, INC.
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
|
|
|
|
(Amounts in thousands)
|
|
|
|
|
|
Twelve Months Ended December 31,
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
Net income
|
|
$
|
44,380
|
|
|
$
|
28,983
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
24,053
|
|
|
15,349
|
|
|
|
|
Stock-based compensation
|
|
47,813
|
|
|
41,158
|
|
|
|
|
Amortization of discounts or premiums on marketable securities
|
|
1,438
|
|
|
2,757
|
|
|
|
|
Deferred income taxes
|
|
3,296
|
|
|
5,895
|
|
|
|
|
Amortization of debt issuance costs
|
|
1,291
|
|
|
1,278
|
|
|
|
|
Amortization of debt discount
|
|
13,415
|
|
|
12,636
|
|
|
|
|
Provision for doubtful accounts
|
|
1,089
|
|
|
1,116
|
|
|
|
|
Loss on fixed asset disposal
|
|
72
|
|
|
3
|
|
|
|
|
Changes in fair value of contingent consideration
|
|
319
|
|
|
-
|
|
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
4,043
|
|
|
(25,172
|
)
|
|
|
|
Prepaid commission expense
|
|
(7,094
|
)
|
|
(2,108
|
)
|
|
|
|
Prepaid expenses and other current assets
|
|
(17,986
|
)
|
|
185
|
|
|
|
|
Other assets
|
|
(1,270
|
)
|
|
(8,735
|
)
|
|
|
|
Accounts payable
|
|
(3,014
|
)
|
|
2,825
|
|
|
|
|
Accrued payroll and other compensation
|
|
2,089
|
|
|
7,343
|
|
|
|
|
Accrued expenses and other
|
|
1,751
|
|
|
14,220
|
|
|
|
|
Deferred revenue
|
|
4,851
|
|
|
(1,050
|
)
|
|
|
|
Other long-term liabilities
|
|
1,210
|
|
|
(7,914
|
)
|
|
|
|
Net cash provided by operating activities
|
|
121,746
|
|
|
88,769
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
Purchase of furniture, fixtures and equipment
|
|
(44,621
|
)
|
|
(25,656
|
)
|
|
|
|
Purchase of available-for-sale securities
|
|
(303,641
|
)
|
|
(266,361
|
)
|
|
|
|
Proceeds from sale of available-for-sale securities
|
|
297,297
|
|
|
271,796
|
|
|
|
|
Acquisition of businesses, net of cash acquired
|
|
(22,941
|
)
|
|
(17,186
|
)
|
|
|
|
Purchase of cost method investment
|
|
(4,124
|
)
|
|
(4,000
|
)
|
|
|
|
Net cash used in investing activities
|
|
(78,030
|
)
|
|
(41,407
|
)
|
|
(1)
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
Proceeds from exercise of stock options
|
|
10,207
|
|
|
5,495
|
|
|
|
|
Proceeds from employee stock purchase plan
|
|
9,378
|
|
|
6,864
|
|
|
|
|
Acquisition of treasury stock
|
|
(18,499
|
)
|
|
(15,570
|
)
|
|
|
|
Repayment of notes payable
|
|
-
|
|
|
(100
|
)
|
|
|
|
Borrowings under term loan facility
|
|
100,000
|
|
|
-
|
|
|
|
|
Payments of credit facility financing costs
|
|
(1,997
|
)
|
|
-
|
|
|
|
|
Net cash provided by (used in) financing activities
|
|
99,089
|
|
|
(3,311
|
)
|
|
|
|
Effect of exchange rate changes on cash, cash equivalents and
restricted cash
|
|
759
|
|
|
(244
|
)
|
|
|
|
Net increase in cash, cash equivalents and restricted cash
|
|
143,564
|
|
|
43,807
|
|
|
|
|
Cash, cash equivalents and restricted cash - Beginning of period
|
|
99,279
|
|
|
55,472
|
|
|
(1)
|
|
Cash, cash equivalents and restricted cash - End of period
|
|
$
|
242,843
|
|
|
$
|
99,279
|
|
|
(1)
|
|
(1) As a result of our early adoption of ASU. No. 2016-18 during the
first quarter of 2017, the consolidated statement of cash flows for
the twelve months ended December 31, 2016 has been adjusted to
include restricted cash in beginning- and end-of-period cash.
|
|
|
|
MEDIDATA SOLUTIONS, INC.
|
|
Reconciliation of Forward-Looking GAAP Operating Income
Guidance and GAAP Net Income Guidance to
Non-GAAP
Operating Income Guidance and Adjusted Non-GAAP Net Income
Guidance (Unaudited)
|
|
(Amounts in millions)
|
|
|
|
Estimated Full-Year
|
|
|
|
2018
|
|
GAAP operating income:
|
|
$63.5 - $73.5
|
|
Stock-based compensation (1)
|
|
60.0
|
|
Depreciation and amortization (1)
|
|
33.0
|
|
Contingent consideration adjustment (1)
|
|
0.5
|
|
Non-GAAP operating income
|
|
$157.0 - $167.0
|
|
|
|
|
|
GAAP net income:
|
|
$42.0 - $50.0
|
|
Stock-based compensation (1)
|
|
60.0
|
|
Amortization (1)
|
|
5.0
|
|
Non-cash interest expense (1)
|
|
10.0
|
|
Contingent consideration adjustment (1)
|
|
0.5
|
|
Tax impact on add-back items (2)
|
|
(19.0)
|
|
Adjusted non-GAAP net income
|
|
$98.5 - $106.5
|
|
|
|
|
|
(1) Represents the estimated midpoint of our guidance range.
|
|
(2) Tax impact estimated using a 25% rate.
|
|
|
|
|
|
MEDIDATA SOLUTIONS, INC.
|
|
Anticipated Impact of Transition from ASC 605 to ASC 606
|
|
(Unaudited)
|
|
(Amounts in thousands, except per share data)
|
|
|
|
|
|
Twelve Months Ended December 31, 2017
|
|
Twelve Months Ended December 31, 2016
|
|
|
|
As Reported
Under ASC
605
|
|
Anticipated
Under ASC
606
|
|
Change
|
|
As Reported
Under ASC
605
|
|
Anticipated
Under ASC
606
|
|
Change
|
|
GAAP results:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription
|
|
$
|
459,528
|
|
|
$
|
457,824
|
|
|
$
|
(1,704
|
)
|
|
$
|
394,269
|
|
|
$
|
388,997
|
|
|
$
|
(5,272
|
)
|
|
Professional services
|
|
86,004
|
|
|
86,381
|
|
|
377
|
|
|
69,112
|
|
|
69,496
|
|
|
384
|
|
|
Total revenues
|
|
$
|
545,532
|
|
|
$
|
544,205
|
|
|
$
|
(1,327
|
)
|
|
$
|
463,381
|
|
|
$
|
458,493
|
|
|
$
|
(4,888
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
$
|
126,273
|
|
|
$
|
124,138
|
|
|
$
|
(2,135
|
)
|
|
$
|
109,290
|
|
|
$
|
105,925
|
|
|
$
|
(3,365
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
64,348
|
|
|
$
|
65,156
|
|
|
$
|
808
|
|
|
$
|
50,209
|
|
|
$
|
48,686
|
|
|
$
|
(1,523
|
)
|
|
Operating margin
|
|
11.8
|
%
|
|
12.0
|
%
|
|
0.2
|
%
|
|
10.8
|
%
|
|
10.6
|
%
|
|
(0.2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
$
|
7,847
|
|
|
$
|
5,459
|
|
|
$
|
(2,388
|
)
|
|
$
|
8,331
|
|
|
$
|
7,782
|
|
|
$
|
(549
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
44,380
|
|
|
$
|
47,576
|
|
|
$
|
3,196
|
|
|
$
|
28,983
|
|
|
$
|
28,009
|
|
|
$
|
(974
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.79
|
|
|
$
|
0.84
|
|
|
$
|
0.05
|
|
|
$
|
0.52
|
|
|
$
|
0.50
|
|
|
$
|
(0.02
|
)
|
|
Diluted
|
|
$
|
0.74
|
|
|
$
|
0.80
|
|
|
$
|
0.06
|
|
|
$
|
0.51
|
|
|
$
|
0.49
|
|
|
$
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating income
|
|
$
|
131,763
|
|
|
$
|
132,571
|
|
|
$
|
808
|
|
|
$
|
106,716
|
|
|
$
|
105,193
|
|
|
$
|
(1,523
|
)
|
|
Non-GAAP operating margin
|
|
24.2
|
%
|
|
24.4
|
%
|
|
0.2
|
%
|
|
23.0
|
%
|
|
22.9
|
%
|
|
(0.1
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted non-GAAP net income
|
|
$
|
81,684
|
|
|
$
|
84,880
|
|
|
$
|
3,196
|
|
|
$
|
62,804
|
|
|
$
|
61,830
|
|
|
$
|
(974
|
)
|
|
Adjusted non-GAAP basic earnings per share
|
|
$
|
1.45
|
|
|
$
|
1.50
|
|
|
$
|
0.05
|
|
|
$
|
1.13
|
|
|
$
|
1.11
|
|
|
$
|
0.02
|
|
|
Adjusted non-GAAP diluted earnings per share
|
|
$
|
1.37
|
|
|
$
|
1.42
|
|
|
$
|
0.05
|
|
|
$
|
1.10
|
|
|
$
|
1.08
|
|
|
$
|
0.02
|
|
|
|
|
The table above presents the anticipated impact of our January
1, 2018 full retrospective adoption of the new revenue guidance in
Accounting Standards Codification ("ASC") 606 on the affected line
items of our consolidated statements of operations for the twelve
months ended December 31, 2017 and 2016. This information is
provided as a supplement to our consolidated statements of
operations to enable investors to understand the relationship
between our historical results as reported under ASC 605 and our
forward-looking guidance under ASC 606.
|
|
|
|
MEDIDATA SOLUTIONS, INC.
|
|
Anticipated Impact of Transition from ASC 605 to ASC 606
(Unaudited)
|
|
(Amounts in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
Three Months Ended June 30,
|
|
Three Months Ended September 30,
|
|
Three Months Ended December 31,
|
|
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Reported
Under ASC
605
|
|
Anticipated
Under ASC
606
|
|
Change
|
|
As Reported
Under ASC
605
|
|
Anticipated
Under ASC
606
|
|
Change
|
|
As Reported
Under ASC
605
|
|
Anticipated
Under ASC
606
|
|
Change
|
|
As Reported
Under ASC
605
|
|
Anticipated
Under ASC
606
|
|
Change
|
|
GAAP results:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription
|
|
$
|
107,070
|
|
|
$
|
107,893
|
|
|
$
|
823
|
|
|
$
|
114,291
|
|
|
$
|
112,904
|
|
|
$
|
(1,387
|
)
|
|
$
|
118,411
|
|
|
$
|
117,271
|
|
|
$
|
(1,140
|
)
|
|
$
|
119,756
|
|
|
$
|
119,756
|
|
|
$
|
-
|
|
|
Professional services
|
|
19,751
|
|
|
19,751
|
|
|
-
|
|
|
23,123
|
|
|
23,123
|
|
|
-
|
|
|
21,669
|
|
|
21,674
|
|
|
5
|
|
|
21,461
|
|
|
21,833
|
|
|
372
|
|
|
Total revenues
|
|
$
|
126,821
|
|
|
$
|
127,644
|
|
|
$
|
823
|
|
|
$
|
137,414
|
|
|
$
|
136,027
|
|
|
$
|
(1,387
|
)
|
|
$
|
140,080
|
|
|
$
|
138,945
|
|
|
$
|
(1,135
|
)
|
|
$
|
141,217
|
|
|
$
|
141,589
|
|
|
$
|
372
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
$
|
30,109
|
|
|
$
|
30,226
|
|
|
$
|
117
|
|
|
$
|
32,784
|
|
|
$
|
32,479
|
|
|
$
|
(305
|
)
|
|
$
|
31,428
|
|
|
$
|
29,996
|
|
|
$
|
(1,432
|
)
|
|
$
|
31,952
|
|
|
$
|
31,437
|
|
|
$
|
(515
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
12,173
|
|
|
$
|
12,879
|
|
|
$
|
706
|
|
|
$
|
13,743
|
|
|
$
|
12,661
|
|
|
$
|
(1,082
|
)
|
|
$
|
21,960
|
|
|
$
|
22,257
|
|
|
$
|
297
|
|
|
$
|
16,472
|
|
|
$
|
17,359
|
|
|
$
|
887
|
|
|
Operating margin
|
|
9.6
|
%
|
|
10.1
|
%
|
|
0.5
|
%
|
|
10.0
|
%
|
|
9.3
|
%
|
|
(0.7
|
)%
|
|
15.7
|
%
|
|
16.0
|
%
|
|
0.3
|
%
|
|
11.7
|
%
|
|
12.3
|
%
|
|
0.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
$
|
(501
|
)
|
|
$
|
(257
|
)
|
|
$
|
244
|
|
|
$
|
2,438
|
|
|
$
|
2,065
|
|
|
$
|
(373
|
)
|
|
$
|
6,233
|
|
|
$
|
6,331
|
|
|
$
|
98
|
|
|
$
|
(323
|
)
|
|
$
|
(2,680
|
)
|
|
$
|
(2,357
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
9,518
|
|
|
$
|
9,980
|
|
|
$
|
462
|
|
|
$
|
8,250
|
|
|
$
|
7,541
|
|
|
$
|
(709
|
)
|
|
$
|
12,844
|
|
|
$
|
13,043
|
|
|
$
|
199
|
|
|
$
|
13,768
|
|
|
$
|
17,012
|
|
|
$
|
3,244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.17
|
|
|
$
|
0.18
|
|
|
$
|
0.01
|
|
|
$
|
0.15
|
|
|
$
|
0.13
|
|
|
$
|
(0.02
|
)
|
|
$
|
0.23
|
|
|
$
|
0.23
|
|
|
$
|
-
|
|
|
$
|
0.24
|
|
|
$
|
0.30
|
|
|
$
|
0.06
|
|
|
Diluted
|
|
$
|
0.16
|
|
|
$
|
0.17
|
|
|
$
|
0.01
|
|
|
$
|
0.14
|
|
|
$
|
0.13
|
|
|
$
|
(0.01
|
)
|
|
$
|
0.21
|
|
|
$
|
0.22
|
|
|
$
|
0.01
|
|
|
$
|
0.23
|
|
|
$
|
0.28
|
|
|
$
|
0.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating income
|
|
$
|
26,970
|
|
|
$
|
27,676
|
|
|
$
|
706
|
|
|
$
|
32,082
|
|
|
$
|
31,000
|
|
|
$
|
(1,082
|
)
|
|
$
|
36,154
|
|
|
$
|
36,451
|
|
|
$
|
297
|
|
|
$
|
36,557
|
|
|
$
|
37,444
|
|
|
$
|
887
|
|
|
Non-GAAP operating margin
|
|
21.3
|
%
|
|
21.7
|
%
|
|
0.4
|
%
|
|
23.3
|
%
|
|
22.8
|
%
|
|
(0.5
|
)%
|
|
25.8
|
%
|
|
26.2
|
%
|
|
0.4
|
%
|
|
25.9
|
%
|
|
26.4
|
%
|
|
0.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted non-GAAP net income
|
|
$
|
18,192
|
|
|
$
|
18,654
|
|
|
$
|
462
|
|
|
$
|
18,773
|
|
|
$
|
18,064
|
|
|
$
|
(709
|
)
|
|
$
|
20,195
|
|
|
$
|
20,394
|
|
|
$
|
199
|
|
|
$
|
24,524
|
|
|
$
|
27,768
|
|
|
$
|
3,244
|
|
|
Adjusted non-GAAP basic earnings per share
|
|
$
|
0.32
|
|
|
$
|
0.33
|
|
|
$
|
0.01
|
|
|
$
|
0.33
|
|
|
$
|
0.32
|
|
|
$
|
(0.01
|
)
|
|
$
|
0.36
|
|
|
$
|
0.36
|
|
|
$
|
-
|
|
|
$
|
0.43
|
|
|
$
|
0.49
|
|
|
$
|
0.06
|
|
|
Adjusted non-GAAP diluted earnings per share
|
|
$
|
0.31
|
|
|
$
|
0.32
|
|
|
$
|
0.01
|
|
|
$
|
0.31
|
|
|
$
|
0.30
|
|
|
$
|
(0.01
|
)
|
|
$
|
0.33
|
|
|
$
|
0.34
|
|
|
$
|
0.01
|
|
|
$
|
0.41
|
|
|
$
|
0.46
|
|
|
$
|
0.05
|
|
|
|
|
The table above presents the anticipated impact of our January
1, 2018 full retrospective adoption of the new revenue guidance in
ASC 606 on the affected line items of our consolidated statements
of operations for the three-month periods ended March 31, 2017;
June 30, 2017; September 30, 2017; and December 31, 2017. This
information is provided as a supplement to our consolidated
statements of operations to enable investors to understand the
relationship between our historical results as reported under ASC
605 and our forward-looking guidance under ASC 606.
|
|
|
|
|
|
MEDIDATA SOLUTIONS, INC.
|
|
Anticipated Impact of Transition from ASC 605 to ASC 606
(Unaudited)
|
|
(Amounts in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
Three Months Ended June 30,
|
|
Three Months Ended September 30,
|
|
Three Months Ended December 31,
|
|
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Reported
Under ASC
605
|
|
Anticipated
Under ASC
606
|
|
Change
|
|
As Reported
Under ASC
605
|
|
Anticipated
Under ASC
606
|
|
Change
|
|
As Reported
Under ASC
605
|
|
Anticipated
Under ASC
606
|
|
Change
|
|
As Reported
Under ASC
605
|
|
Anticipated
Under ASC
606
|
|
Change
|
|
GAAP results:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription
|
|
$
|
89,968
|
|
|
$
|
91,223
|
|
|
$
|
1,255
|
|
|
$
|
96,760
|
|
|
$
|
96,333
|
|
|
$
|
(427
|
)
|
|
$
|
101,560
|
|
|
$
|
100,462
|
|
|
$
|
(1,098
|
)
|
|
$
|
105,981
|
|
|
$
|
100,979
|
|
|
$
|
(5,002
|
)
|
|
Professional services
|
|
14,270
|
|
|
14,270
|
|
|
-
|
|
|
17,850
|
|
|
17,935
|
|
|
85
|
|
|
18,501
|
|
|
18,501
|
|
|
-
|
|
|
18,491
|
|
|
18,790
|
|
|
299
|
|
|
Total revenues
|
|
$
|
104,238
|
|
|
$
|
105,493
|
|
|
$
|
1,255
|
|
|
$
|
114,610
|
|
|
$
|
114,268
|
|
|
$
|
(342
|
)
|
|
$
|
120,061
|
|
|
$
|
118,963
|
|
|
$
|
(1,098
|
)
|
|
$
|
124,472
|
|
|
$
|
119,769
|
|
|
$
|
(4,703
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
$
|
25,458
|
|
|
$
|
24,489
|
|
|
$
|
(969
|
)
|
|
$
|
27,609
|
|
|
$
|
26,121
|
|
|
$
|
(1,488
|
)
|
|
$
|
27,789
|
|
|
$
|
25,977
|
|
|
$
|
(1,812
|
)
|
|
$
|
28,434
|
|
|
$
|
29,338
|
|
|
$
|
904
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
6,638
|
|
|
$
|
8,862
|
|
|
$
|
2,224
|
|
|
$
|
11,146
|
|
|
$
|
12,292
|
|
|
$
|
1,146
|
|
|
$
|
14,927
|
|
|
$
|
15,641
|
|
|
$
|
714
|
|
|
$
|
17,498
|
|
|
$
|
11,891
|
|
|
$
|
(5,607
|
)
|
|
Operating margin
|
|
6.4
|
%
|
|
8.4
|
%
|
|
2.0
|
%
|
|
9.7
|
%
|
|
10.8
|
%
|
|
1.1
|
%
|
|
12.4
|
%
|
|
13.1
|
%
|
|
0.7
|
%
|
|
14.1
|
%
|
|
9.9
|
%
|
|
(4.2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
$
|
(1,196
|
)
|
|
$
|
(141
|
)
|
|
$
|
1,055
|
|
|
$
|
1,688
|
|
|
$
|
2,235
|
|
|
$
|
547
|
|
|
$
|
4,347
|
|
|
$
|
4,866
|
|
|
$
|
519
|
|
|
$
|
3,492
|
|
|
$
|
822
|
|
|
$
|
(2,670
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
4,575
|
|
|
$
|
5,744
|
|
|
$
|
1,169
|
|
|
$
|
6,210
|
|
|
$
|
6,809
|
|
|
$
|
599
|
|
|
$
|
7,358
|
|
|
$
|
7,553
|
|
|
$
|
195
|
|
|
$
|
10,840
|
|
|
$
|
7,903
|
|
|
$
|
(2,937
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.08
|
|
|
$
|
0.10
|
|
|
$
|
0.02
|
|
|
$
|
0.11
|
|
|
$
|
0.12
|
|
|
$
|
0.01
|
|
|
$
|
0.13
|
|
|
$
|
0.14
|
|
|
$
|
0.01
|
|
|
$
|
0.19
|
|
|
$
|
0.14
|
|
|
$
|
(0.05
|
)
|
|
Diluted
|
|
$
|
0.08
|
|
|
$
|
0.10
|
|
|
$
|
0.02
|
|
|
$
|
0.11
|
|
|
$
|
0.12
|
|
|
$
|
0.01
|
|
|
$
|
0.13
|
|
|
$
|
0.13
|
|
|
$
|
-
|
|
|
$
|
0.19
|
|
|
$
|
0.14
|
|
|
$
|
(0.05
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating income
|
|
$
|
20,105
|
|
|
$
|
22,329
|
|
|
$
|
2,224
|
|
|
$
|
25,359
|
|
|
$
|
26,505
|
|
|
$
|
1,146
|
|
|
$
|
29,303
|
|
|
$
|
30,017
|
|
|
$
|
714
|
|
|
$
|
31,949
|
|
|
$
|
26,342
|
|
|
$
|
(5,607
|
)
|
|
Non-GAAP operating margin
|
|
19.3
|
%
|
|
21.2
|
%
|
|
1.9
|
%
|
|
22.1
|
%
|
|
23.2
|
%
|
|
1.1
|
%
|
|
24.4
|
%
|
|
25.2
|
%
|
|
0.8
|
%
|
|
25.7
|
%
|
|
22.0
|
%
|
|
(3.7
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted non-GAAP net income
|
|
$
|
12,832
|
|
|
$
|
14,001
|
|
|
$
|
1,169
|
|
|
$
|
14,790
|
|
|
$
|
15,389
|
|
|
$
|
599
|
|
|
$
|
15,972
|
|
|
$
|
16,167
|
|
|
$
|
195
|
|
|
$
|
19,210
|
|
|
$
|
16,273
|
|
|
$
|
(2,937
|
)
|
|
Adjusted non-GAAP basic earnings per share
|
|
$
|
0.23
|
|
|
$
|
0.25
|
|
|
$
|
0.02
|
|
|
$
|
0.27
|
|
|
$
|
0.28
|
|
|
$
|
0.01
|
|
|
$
|
0.29
|
|
|
$
|
0.29
|
|
|
$
|
-
|
|
|
$
|
0.34
|
|
|
$
|
0.29
|
|
|
$
|
(0.05
|
)
|
|
Adjusted non-GAAP diluted earnings per share
|
|
$
|
0.23
|
|
|
$
|
0.25
|
|
|
$
|
0.02
|
|
|
$
|
0.26
|
|
|
$
|
0.27
|
|
|
$
|
0.01
|
|
|
$
|
0.28
|
|
|
$
|
0.28
|
|
|
$
|
-
|
|
|
$
|
0.33
|
|
|
$
|
0.28
|
|
|
$
|
(0.05
|
)
|
|
|
|
The table above presents the anticipated impact of our January
1, 2018 full retrospective adoption of the new revenue guidance in
ASC 606 on the affected line items of our consolidated statements
of operations for the three-month periods ended March 31, 2016;
June 30, 2016; September 30, 2016; and December 31, 2016. This
information is provided as a supplement to our consolidated
statements of operations to enable investors to understand the
relationship between our historical results as reported under ASC
605 and our forward-looking guidance under ASC 606.
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20180208005364/en/
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