[February 15, 2018] |
|
Amber Road Announces Fourth Quarter and Full Year 2017 Financial Results
Amber Road, Inc. (NYSE: AMBR), a leading provider of global trade
management (GTM) solutions, today announced its financial results for
the fourth quarter and full year ended December 31, 2017.
Jim Preuninger, Chief Executive Officer of Amber Road, stated, "I am
particularly pleased that for 2017 we generated positive adjusted EBITDA
and positive cash flow from operations, exclusive of the retention
payment for ecVision. Increasingly complex global trade regulations,
ever-changing free trade agreements, and continual shifts in global
logistics and supply chains are driving demand for our solutions. During
2017, we were successful in adding many great customers across all of
the industry verticals and geographies we serve, as well as expanding
across our existing customer base. Our customer retention was again very
high, and we saw many lighthouse customers go-live each quarter. We
believe we have set a path towards generating stronger revenue growth,
while delivering sustainable profit and cash flow."
Fourth Quarter 2017 Financial Highlights
Revenue
-
Total revenue was $20.6 million, an increase compared to $19.2 million
for the comparable period of 2016.
-
Subscription revenue was $14.9 million, an increase compared to $14.0
million for the comparable period of 2016.
-
Professional services revenue was $5.7 million, an increase compared
to $5.3 million for the comparable period of 2016.
Operating Loss
-
GAAP operating loss was $(1.9) million, compared to $(4.0) million for
the comparable period of 2016.
-
Non-GAAP adjusted operating loss(1) was $(0.1) million,
compared to $(2.2) million for the comparable period of 2016.
Net Loss
-
GAAP net loss was $(1.8) million, compared to $(4.5) million for the
comparable period of 2016.
-
GAAP basic and diluted net loss per share was $(0.07), compared to
$(0.17) for the comparable period of 2016, based on 27.5 million and
27.0 million basic and diluted weighted average shares outstanding,
respectively.
-
Non-GAAP adjusted net loss(1) was $(10,288), compared to
$(2.7) million for the comparable period of 2016.
-
Non-GAAP adjusted net loss per share was $0.00, compared to $(0.10)
for the comparable period of 2016, based on 27.5 million and 27.0
million basic and diluted weighted average shares outstanding,
respectively.
Adjusted EBITDA
-
Adjusted EBITDA was $1.3 million for the three months ended
December 31, 2017 and $(0.6) million for the comparable period of 2016.
Full Year 2017 Financial Highlights
Revenue
-
Total revenue was $79.1 million, an increase compared to $73.2 million
for the comparable period of 2016.
-
Subscription revenue was $58.5 million, an increase compared to $53.3
million for the comparable period of 2016.
-
Professional Services revenue was $20.6 million, an increase compared
to $19.9 million for the comparable period of 2016.
Operating Loss
-
GAAP operating loss was $(11.4) million, compared to $(17.3) million
in 2016.
-
Non-GAAP adjusted operating loss(1) was $(5.3) million,
compared to $(10.3) million in 2016.
Net Loss
-
GAAP net loss was $(13.0) million, compared to $(18.7) million in 2016.
-
GAAP basic and diluted net loss per share was $(0.47), compared to
$(0.70) in 2016, based on 27.4 million and 26.7 million basic and
diluted weighted average shares outstanding, respectively.
-
Non-GAAP adjusted net loss(1) was $(6.9) million, compared
to $(11.7) million in 2016.
-
Non-GAAP adjusted net loss per share was $(0.25), compared to $(0.44)
in 2016, based on 27.4 million and 26.7 million basic and diluted
weighted average shares outstanding, respectively.
Adjusted EBITDA
-
Adjusted EBITDA was $0.1 million for 2017 and $(3.7) million for the
comparable period of 2016.
Balance Sheet and Cash Flow
-
Cash and cash equivalents at December 31, 2017 totaled $9.4 million,
compared to $8.3 million at September 30, 2017 and $15.4 million at
December 31, 2016.
-
Cash provided by operating activities was $2.1 million for the quarter
ended December 31, 2017.
-
Cash used in operating activities was $(0.7) million for the year
ended December 31, 2017, compared to cash used in operating activities
of $(0.2) million for the year ended December 31, 2016.
A reconciliation of GAAP operating loss and net loss to Non-GAAP
adjusted operating loss and net loss, and of GAAP net loss to Adjusted
EBITDA has been provided in the financial statement tables included in
this press release. An explanation of these measures is also included
below under the heading "Non-GAAP Financial Measures."
Business Outlook
Based on information available as of February 15, 2018, Amber Road is
issuing guidance for the first quarter and full year 2018. Refer to the
reconciliation of GAAP guidance to non-GAAP guidance tables at the end
of this release for details on non-GAAP adjustments.
The guidance provided below reflects the impact of Accounting Standards
Codification (ASC) 606, "Revenue from Contracts with Customers" (ASC
606), which Amber Road is adopting for its fiscal year 2018 using the
modified retrospective transition method. As required by the new
standard, Amber Road will report its financial results under both ASC
606 and the previous standard (ASC 605) for the 2018 transition year. In
order to provide additional transparency, in addition to the guidance
under ASC 606, Amber Road is providing guidance for revenue and non-GAAP
operating loss under ASC 605 for the first quarter and full year 2018,
and an estimate of the changes to its guidance resulting from the
transition from ASC 605 to ASC 606. Amber Road believes that providing
this additional disclosure will help investors and analysts better
understand the impact that the adoption of ASC 606 has on the Company's
guidance and reported results.
The reduction in 2018 revenue under ASC 606 relative to ASC 605 is
principally due to the loss of services revenue from professional
services billings delivered as of December 31, 2017 for on-premise
installations of our software. Under ASC 605, revenue from these
billings were deferred and amortized ratably over the subscription term
of the related contract. Under ASC 606, billings for professional
services related to on-premise software installations will be recognized
as revenue as services are performed. As the professional services were
delivered previous to December 31, 2017, the amount included in deferred
revenue as of that date will not be recognized in 2018 and beyond.
This impact to revenue is anticipated to be greatest in the first
quarter of 2018, and to decrease throughout the year. The actual impact
of the adoption of ASC 606 on revenue will depend on the number of, if
any, on-premise professional service engagements.
Expenses under ASC 606 relative to ASC 605 will be reduced as the result
of amortizing capitalized customer acquisition costs over an estimate of
customer life, whereas, under ASC 605, the initial customer contract
term was used for the amortization period.
Given our adoption of ASC 606, we anticipate first quarter and full-year
2018 results to be in the following ranges:
|
First Quarter 2018 Guidance (in millions, except per share
info):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Under ASC 606
|
|
|
Under ASC 605
|
|
|
Impact of Adoption of ASC 606
|
|
|
|
Low
|
|
High
|
|
|
Low
|
|
|
High
|
|
|
Low
|
|
|
High
|
Revenue
|
|
|
$
|
19.6
|
|
|
$
|
20.2
|
|
|
|
$
|
20.3
|
|
|
|
$
|
20.9
|
|
|
|
$
|
(0.7
|
)
|
|
|
$
|
(0.7
|
)
|
Year-over-year growth
|
|
|
|
|
|
|
|
9
|
%
|
|
|
12
|
%
|
|
|
|
|
|
|
Non-GAAP adjusted loss from operations
|
|
|
$
|
(2.3
|
)
|
|
$
|
(1.7
|
)
|
|
|
$
|
(1.9
|
)
|
|
|
$
|
(1.3
|
)
|
|
|
$
|
(0.4
|
)
|
|
|
$
|
(0.4
|
)
|
Non-GAAP net loss per share, basic and diluted
|
|
|
$
|
(0.10
|
)
|
|
$
|
(0.08
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Assumed weighted average shares outstanding
|
|
|
29.0
|
|
|
29.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year 2018 Guidance (in millions, except per share info):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Under ASC 606
|
|
|
Under ASC 605
|
|
|
Impact of Adoption of ASC 606
|
|
|
|
Low
|
|
|
High
|
|
|
Low
|
|
|
High
|
|
|
Low
|
|
High
|
Revenue
|
|
|
$
|
84.0
|
|
|
|
$
|
87.0
|
|
|
|
$
|
86.0
|
|
|
|
$
|
89.0
|
|
|
|
$
|
(2.0
|
)
|
|
$
|
(2.0
|
)
|
Year-over-year growth
|
|
|
|
|
|
|
|
|
9
|
%
|
|
|
13
|
%
|
|
|
|
|
|
Non-GAAP adjusted loss from operations
|
|
|
$
|
(6.6
|
)
|
|
|
$
|
(3.6
|
)
|
|
|
$
|
(5.1
|
)
|
|
|
$
|
(2.1
|
)
|
|
|
$
|
(1.5
|
)
|
|
$
|
(1.5
|
)
|
Non-GAAP net loss per share, basic and diluted
|
|
|
$
|
(0.29
|
)
|
|
|
$
|
(0.19
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Assumed weighted average shares outstanding
|
|
|
30.0
|
|
|
|
30.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Endnotes:
(1) For 2017, non-GAAP adjusted operating loss and adjusted net loss
excludes stock-based compensation and change in fair value of contingent
consideration liability. For 2016, non-GAAP adjusted operating loss and
adjusted net loss excludes stock-based compensation, change in fair
value of contingent consideration liability, purchase accounting
deferred revenue adjustment, acquisition compensation costs and
acquisition related costs.
Conference Call Information
Amber Road will host a conference call on Thursday, February 15, 2018 at
5:00 p.m. Eastern Time (ET) to discuss the Company's fourth quarter
financial results and its business outlook. To access this call, dial
(800)-289-0438 (domestic) or (323) 994-2083 (international). The
conference ID is 5521273. Additionally, a live webcast of the conference
call will be available in the "Investor Relations" section of the
Company's web site at www.AmberRoad.com.
Following the conference call, a replay will be available until February
22, 2018 at (844)-512-2921 (domestic) or (412)-317-6671 (international).
The replay pass code is 5521273. An archived webcast of this conference
call will also be available in the "Investor Relations" section of the
Company's web site at www.AmberRoad.com.
About Amber Road
Amber Road's (NYSE: AMBR) mission is to dramatically transform the way
companies conduct global trade. As a leading provider of cloud-based
global trade management (GTM) software, trade content and training, we
help companies all over the world create value through their global
supply chain by improving margins, achieving greater agility and
lowering risk. We do this by creating a digital model of the global
supply chain that enables collaboration between buyers, sellers and
logistics companies. We replace manual and outdated processes with
comprehensive automation for global trade activities, including
sourcing, supplier management, production tracking, transportation
management, supply chain visibility, import and export compliance, and
duty management. We provide rich data analytics to uncover areas for
optimization and deliver a platform that is responsive and flexible to
adapt to the ever-changing nature of global trade.
Non-GAAP Financial Measures
To provide investors with additional information regarding our financial
results, Amber Road has provided non-GAAP financial measures and
non-GAAP guidance within this press release including non-GAAP adjusted
operating and net loss and adjusted EBITDA, financial measures that are
not calculated in accordance with generally accepted accounting
principles, or GAAP. Provided below is a reconciliation of GAAP
operating and net loss to non-GAAP adjusted operating and net loss, and
net loss to adjusted EBITDA. EBITDA consists of net loss plus
depreciation and amortization, interest expense (income) and income tax
expense. Adjusted EBITDA consists of EBITDA plus stock-based
compensation, changes in the fair value of contingent consideration
liability, purchase accounting adjustment to deferred revenue,
acquisition compensation costs and acquisition related costs. Amber Road
has included these non-GAAP measures in this press release because it
assists in comparing performance on a consistent basis across reporting
periods, as it removes from operating results the impact of the
Company's capital structure. Amber Road believes these non-GAAP measures
are useful to an investor in evaluating its operating performance
because they are often used by the financial community to measure a
company's operating performance without regard to items such as
depreciation and amortization, which can vary depending upon accounting
methods and the book value of assets, and to present a meaningful
measure of performance exclusive of its capital structure and the method
by which assets were acquired.
Amber Road's use of these non-GAAP measures has limitations as an
analytical tool, and you should not consider it in isolation or as a
substitute for analysis of its results as reported under GAAP. Some of
these limitations are:
-
although depreciation and amortization are non-cash charges, the
assets being depreciated and amortized may have to be replaced in the
future, and these non-GAAP measures do not reflect cash capital
expenditure requirements for such replacements or for new capital
expenditure requirements;
-
these non-GAAP measures do not reflect changes in, or cash
requirements for, working capital needs;
-
these non-GAAP measures do not reflect the potentially dilutive impact
of equity-based compensation;
-
these non-GAAP measures do not reflect interest or tax payments that
may represent a reduction in cash available; and
-
other companies, including companies in Amber Road's industry, may
calculate adjusted EBITDA differently, which reduces its usefulness as
a comparative measure.
Because of these and other limitations, you should consider these
non-GAAP measures together with other GAAP-based financial performance
measures, including various cash flow metrics, net loss and other GAAP
results. A reconciliation of GAAP operating and net loss to non-GAAP
adjusted operating and net loss, and adjusted EBITDA has been provided
in the financial statement tables included in this press release.
Cautionary Language Concerning Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are not historical facts, but instead
represent only our current expectations and beliefs, and therefore,
contain risks and uncertainties about future events or our future
financial performance, including, but not limited to, achieving revenue
from bookings, closing business from the sales pipeline, new customer
deployments and maintaining these relationships, the ability to reduce
operating losses and use of cash, and attaining profitability. In some
cases, you can identify forward-looking statements by terminology such
as "may," "will," "could," "should," "expect," "intend," "plan,"
"anticipate," "believe," "estimate," "predict," "potential," or
"continue," and similar expressions, whether in the negative or
affirmative. These statements are only predictions and may be
inaccurate. Actual events or results may differ materially. In
evaluating these statements, you should specifically consider various
factors, including the risks outlined in our filings with the Securities
and Exchange Commission (SEC), including, without limitation, our
annual, periodic and current SEC reports. These factors may cause our
actual results to differ materially from any forward-looking statement.
Although we believe that the expectations reflected in the
forward-looking statements are reasonable, our future results, levels of
activity, performance or achievements may differ from our expectations.
Other than as required by law, we do not undertake to update any of the
forward-looking statements after the date of this press release, even
though our situation may change in the future.
|
AMBER ROAD, INC. AND SUBSIDIARIES
|
Consolidated Balance Sheets
|
|
(Unaudited)
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
2017
|
|
|
2016
|
Assets
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
9,360,601
|
|
|
|
$
|
15,408,133
|
|
Accounts receivable, net
|
|
|
16,957,044
|
|
|
|
19,661,156
|
|
Unbilled receivables
|
|
|
884,104
|
|
|
|
314,328
|
|
Deferred commissions
|
|
|
4,400,015
|
|
|
|
4,420,632
|
|
Prepaid expenses and other current assets
|
|
|
1,715,534
|
|
|
|
1,719,612
|
|
Total current assets
|
|
|
33,317,298
|
|
|
|
41,523,861
|
|
Property and equipment, net
|
|
|
9,370,104
|
|
|
|
9,978,255
|
|
Goodwill
|
|
|
43,768,269
|
|
|
|
43,907,017
|
|
Other intangibles, net
|
|
|
4,999,885
|
|
|
|
6,148,820
|
|
Deferred commissions
|
|
|
6,734,326
|
|
|
|
8,046,664
|
|
Deposits and other assets
|
|
|
1,180,163
|
|
|
|
884,471
|
|
Total assets
|
|
|
$
|
99,370,045
|
|
|
|
$
|
110,489,088
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
2,650,582
|
|
|
|
$
|
2,724,591
|
|
Accrued expenses
|
|
|
7,589,483
|
|
|
|
14,127,304
|
|
Current portion of capital lease obligations
|
|
|
1,352,456
|
|
|
|
1,155,964
|
|
Deferred revenue
|
|
|
39,230,337
|
|
|
|
34,464,264
|
|
Current portion of term loan, net of discount
|
|
|
714,391
|
|
|
|
593,336
|
|
Total current liabilities
|
|
|
51,537,249
|
|
|
|
53,065,459
|
|
Capital lease obligations, less current portion
|
|
|
1,461,101
|
|
|
|
1,276,700
|
|
Deferred revenue, less current portion
|
|
|
412,607
|
|
|
|
2,135,620
|
|
Term loan, net of discount, less current portion
|
|
|
12,839,392
|
|
|
|
13,614,514
|
|
Revolving credit facility
|
|
|
6,000,000
|
|
|
|
6,000,000
|
|
Other noncurrent liabilities
|
|
|
1,619,744
|
|
|
|
1,825,317
|
|
Total liabilities
|
|
|
73,870,093
|
|
|
|
77,917,610
|
|
Stockholders' equity:
|
|
|
|
|
|
|
Common stock, $0.001 par value; 100,000,000 shares authorized;
issued and outstanding 27,288,985 and 26,926,268 shares at December
31, 2017 and 2016, respectively
|
|
|
27,289
|
|
|
|
26,926
|
|
Additional paid-in capital
|
|
|
195,203,097
|
|
|
|
188,811,896
|
|
Accumulated other comprehensive loss
|
|
|
(1,822,396
|
)
|
|
|
(1,336,792
|
)
|
Accumulated deficit
|
|
|
(167,908,038
|
)
|
|
|
(154,930,552
|
)
|
Total stockholders' equity
|
|
|
25,499,952
|
|
|
|
32,571,478
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
99,370,045
|
|
|
|
$
|
110,489,088
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMBER ROAD, INC. AND SUBSIDIARIES Consolidated
Statements of Operations (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Twelve Months Ended, December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription
|
|
|
$
|
14,946,922
|
|
|
|
$
|
13,951,947
|
|
|
|
$
|
58,479,139
|
|
|
|
$
|
53,310,533
|
|
Professional services
|
|
|
5,686,088
|
|
|
|
5,254,830
|
|
|
|
20,596,971
|
|
|
|
19,850,657
|
|
Total revenue
|
|
|
20,633,010
|
|
|
|
19,206,777
|
|
|
|
79,076,110
|
|
|
|
73,161,190
|
|
Cost of revenue (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of subscription revenue
|
|
|
5,084,774
|
|
|
|
4,934,144
|
|
|
|
21,151,419
|
|
|
|
19,922,839
|
|
Cost of professional services revenue
|
|
|
4,193,920
|
|
|
|
3,941,446
|
|
|
|
16,590,148
|
|
|
|
15,813,562
|
|
Total cost of revenue
|
|
|
9,278,694
|
|
|
|
8,875,590
|
|
|
|
37,741,567
|
|
|
|
35,736,401
|
|
Gross profit
|
|
|
11,354,316
|
|
|
|
10,331,187
|
|
|
|
41,334,543
|
|
|
|
37,424,789
|
|
Operating expenses (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
|
5,482,973
|
|
|
|
5,668,985
|
|
|
|
22,526,535
|
|
|
|
22,637,984
|
|
Research and development
|
|
|
3,739,817
|
|
|
|
4,675,379
|
|
|
|
14,941,394
|
|
|
|
16,794,516
|
|
General and administrative
|
|
|
4,015,472
|
|
|
|
3,988,964
|
|
|
|
15,263,297
|
|
|
|
15,318,098
|
|
Total operating expenses
|
|
|
13,238,262
|
|
|
|
14,333,328
|
|
|
|
52,731,226
|
|
|
|
54,750,598
|
|
Loss from operations
|
|
|
(1,883,946
|
)
|
|
|
(4,002,141
|
)
|
|
|
(11,396,683
|
)
|
|
|
(17,325,809
|
)
|
Interest income
|
|
|
2,242
|
|
|
|
1,268
|
|
|
|
4,806
|
|
|
|
57,126
|
|
Interest expense
|
|
|
(225,190
|
)
|
|
|
(218,778
|
)
|
|
|
(976,834
|
)
|
|
|
(862,321
|
)
|
Loss before income taxes
|
|
|
(2,106,894
|
)
|
|
|
(4,219,651
|
)
|
|
|
(12,368,711
|
)
|
|
|
(18,131,004
|
)
|
Income tax expense (benefit)
|
|
|
(297,782
|
)
|
|
|
289,257
|
|
|
|
608,775
|
|
|
|
595,722
|
|
Net loss
|
|
|
$
|
(1,809,112
|
)
|
|
|
$
|
(4,508,908
|
)
|
|
|
$
|
(12,977,486
|
)
|
|
|
$
|
(18,726,726
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
|
$
|
(0.07
|
)
|
|
|
$
|
(0.17
|
)
|
|
|
$
|
(0.47
|
)
|
|
|
$
|
(0.70
|
)
|
Weighted-average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
|
27,531,369
|
|
|
|
27,045,179
|
|
|
|
27,415,953
|
|
|
|
26,718,882
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes stock-based compensation as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Twelve Months Ended, December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
Cost of subscription revenue
|
|
|
$
|
175,912
|
|
|
|
$
|
172,386
|
|
|
|
$
|
767,877
|
|
|
|
$
|
810,455
|
Cost of professional services revenue
|
|
|
144,249
|
|
|
|
102,693
|
|
|
|
549,378
|
|
|
|
480,160
|
Sales and marketing
|
|
|
234,681
|
|
|
|
197,842
|
|
|
|
1,015,307
|
|
|
|
872,899
|
Research and development
|
|
|
417,344
|
|
|
|
314,365
|
|
|
|
1,404,771
|
|
|
|
1,161,422
|
General and administrative
|
|
|
826,638
|
|
|
|
473,544
|
|
|
|
2,340,536
|
|
|
|
2,142,954
|
|
|
|
$
|
1,798,824
|
|
|
|
$
|
1,260,830
|
|
|
|
$
|
6,077,869
|
|
|
|
$
|
5,467,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMBER ROAD, INC. AND SUBSIDIARIES Consolidated
Statements of Cash Flows (Unaudited)
|
|
|
|
|
|
|
|
Twelve Months Ended, December 31,
|
|
|
|
2017
|
|
|
2016
|
Cash flows from operating activities:
|
|
|
|
|
|
|
Net loss
|
|
|
$
|
(12,977,486
|
)
|
|
|
$
|
(18,726,726
|
)
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
5,386,790
|
|
|
|
6,590,343
|
|
Bad debt expense
|
|
|
568,193
|
|
|
|
509,454
|
|
Stock-based compensation
|
|
|
6,077,869
|
|
|
|
5,467,890
|
|
Acquisition related deferred compensation
|
|
|
-
|
|
|
|
1,419,885
|
|
Changes in fair value of contingent consideration liability
|
|
|
18,525
|
|
|
|
30,469
|
|
Accretion of debt discount
|
|
|
37,884
|
|
|
|
62,914
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable and unbilled receivables
|
|
|
1,615,836
|
|
|
|
(1,213,717
|
)
|
Prepaid expenses and other assets
|
|
|
1,313,029
|
|
|
|
(1,437,777
|
)
|
Accounts payable
|
|
|
(166,898
|
)
|
|
|
1,284,742
|
|
Accrued expenses
|
|
|
(2,988,525
|
)
|
|
|
4,228,119
|
|
Settlement of contingent accrued compensation related to former
ecVision founder
|
|
|
(2,366,469
|
)
|
|
|
-
|
|
Other liabilities
|
|
|
(209,859
|
)
|
|
|
(2,084,343
|
)
|
Deferred revenue
|
|
|
3,021,248
|
|
|
|
3,702,924
|
|
Net cash used in operating activities
|
|
|
(669,863
|
)
|
|
|
(165,823
|
)
|
Cash flows from investing activities:
|
|
|
|
|
|
|
Capital expenditures
|
|
|
(257,893
|
)
|
|
|
(231,979
|
)
|
Addition of capitalized software development costs
|
|
|
(1,458,495
|
)
|
|
|
(2,286,778
|
)
|
Addition of intangible assets
|
|
|
-
|
|
|
|
(275,000
|
)
|
Cash paid for deposits
|
|
|
(190,752
|
)
|
|
|
(118,993
|
)
|
Decrease (increase) in restricted cash
|
|
|
(259
|
)
|
|
|
113,094
|
|
Net cash used in investing activities
|
|
|
(1,907,399
|
)
|
|
|
(2,799,656
|
)
|
Cash flows from financing activities:
|
|
|
|
|
|
|
Proceeds from revolving line of credit
|
|
|
24,350,000
|
|
|
|
20,250,000
|
|
Payments on revolving line of credit
|
|
|
(24,350,000
|
)
|
|
|
(19,250,000
|
)
|
Payments on term loan
|
|
|
(656,250
|
)
|
|
|
(375,000
|
)
|
Debt financing costs
|
|
|
(35,701
|
)
|
|
|
-
|
|
Repayments on capital lease obligations
|
|
|
(1,556,097
|
)
|
|
|
(1,425,882
|
)
|
Proceeds from the exercise of stock options
|
|
|
313,695
|
|
|
|
1,887,582
|
|
Contingent consideration related to ecVision acquisition
|
|
|
(1,308,525
|
)
|
|
|
-
|
|
Net cash provided by (used in) financing activities
|
|
|
(3,242,878
|
)
|
|
|
1,086,700
|
|
Effect of exchange rate on cash and cash equivalents
|
|
|
(227,392
|
)
|
|
|
(567,611
|
)
|
Net decrease in cash and cash equivalents
|
|
|
(6,047,532
|
)
|
|
|
(2,446,390
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
15,408,133
|
|
|
|
17,854,523
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
9,360,601
|
|
|
|
$
|
15,408,133
|
|
|
|
|
|
|
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
|
Cash paid for interest
|
|
|
$
|
938,949
|
|
|
|
$
|
790,338
|
|
Non-cash property and equipment acquired under capital lease
|
|
|
1,936,990
|
|
|
|
834,432
|
|
Non-cash property and equipment purchases in accounts payable
|
|
|
-
|
|
|
|
22,454
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Loss to Adjusted EBITDA (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Twelve Months Ended, December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
Net loss
|
|
|
$
|
(1,809,112
|
)
|
|
|
$
|
(4,508,908
|
)
|
|
|
$
|
(12,977,486
|
)
|
|
|
$
|
(18,726,726
|
)
|
Depreciation and amortization expense
|
|
|
1,371,549
|
|
|
|
1,526,834
|
|
|
|
5,386,789
|
|
|
|
6,590,343
|
|
Interest expense
|
|
|
225,190
|
|
|
|
218,778
|
|
|
|
976,834
|
|
|
|
862,321
|
|
Interest income
|
|
|
(2,242
|
)
|
|
|
(1,268
|
)
|
|
|
(4,806
|
)
|
|
|
(57,126
|
)
|
Income tax expense (benefit)
|
|
|
(297,782
|
)
|
|
|
289,257
|
|
|
|
608,775
|
|
|
|
595,722
|
|
EBITDA
|
|
|
(512,397
|
)
|
|
|
(2,475,307
|
)
|
|
|
(6,009,894
|
)
|
|
|
(10,735,466
|
)
|
Stock-based compensation
|
|
|
1,798,824
|
|
|
|
1,260,830
|
|
|
|
6,077,869
|
|
|
|
5,467,890
|
|
Change in fair value of contingent consideration liability
|
|
|
-
|
|
|
|
20,000
|
|
|
|
18,525
|
|
|
|
30,469
|
|
Purchase accounting deferred revenue adjustment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
69,095
|
|
Acquisition compensation costs
|
|
|
-
|
|
|
|
567,954
|
|
|
|
-
|
|
|
|
1,419,885
|
|
Acquisition related costs
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,420
|
|
Adjusted EBITDA
|
|
|
$
|
1,286,427
|
|
|
|
$
|
(626,523
|
)
|
|
|
$
|
86,500
|
|
|
|
$
|
(3,742,707
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Loss to Non-GAAP Adjusted Net Loss (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Twelve Months Ended, December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
Net loss
|
|
|
$
|
(1,809,112
|
)
|
|
|
$
|
(4,508,908
|
)
|
|
|
$
|
(12,977,486
|
)
|
|
|
$
|
(18,726,726
|
)
|
Stock-based compensation
|
|
|
1,798,824
|
|
|
|
1,260,830
|
|
|
|
6,077,869
|
|
|
|
5,467,890
|
|
Change in fair value of contingent consideration liability
|
|
|
-
|
|
|
|
20,000
|
|
|
|
18,525
|
|
|
|
30,469
|
|
Purchase accounting deferred revenue adjustment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
69,095
|
|
Acquisition compensation costs
|
|
|
-
|
|
|
|
567,954
|
|
|
|
-
|
|
|
|
1,419,885
|
|
Acquisition related costs
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,420
|
|
Non-GAAP adjusted net loss
|
|
|
$
|
(10,288
|
)
|
|
|
$
|
(2,660,124
|
)
|
|
|
$
|
(6,881,092
|
)
|
|
|
$
|
(11,733,967
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted non-GAAP net loss per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
|
$
|
0.00
|
|
|
|
$
|
(0.10
|
)
|
|
|
$
|
(0.25
|
)
|
|
|
$
|
(0.44
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP weighted average number of shares outstanding - basic and
diluted
|
|
|
27,531,369
|
|
|
|
27,045,179
|
|
|
|
27,415,953
|
|
|
|
26,718,882
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Loss from Operations to Non-GAAP Adjusted
Loss from Operations (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Twelve Months Ended, December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
Loss from operations
|
|
|
$
|
(1,883,946
|
)
|
|
|
$
|
(4,002,141
|
)
|
|
|
$
|
(11,396,683
|
)
|
|
|
$
|
(17,325,809
|
)
|
Stock-based compensation
|
|
|
1,798,824
|
|
|
|
1,260,830
|
|
|
|
6,077,869
|
|
|
|
5,467,890
|
|
Change in fair value of contingent consideration liability
|
|
|
-
|
|
|
|
20,000
|
|
|
|
18,525
|
|
|
|
30,469
|
|
Purchase accounting deferred revenue adjustment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
69,095
|
|
Acquisition compensation costs
|
|
|
-
|
|
|
|
567,954
|
|
|
|
-
|
|
|
|
1,419,885
|
|
Acquisition related costs
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,420
|
|
Non-GAAP adjusted loss from operations
|
|
|
$
|
(85,122
|
)
|
|
|
$
|
(2,153,357
|
)
|
|
|
$
|
(5,300,289
|
)
|
|
|
$
|
(10,333,050
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Based on information available as of February 15, 2018, the following
tables show 2018 GAAP guidance reconciled to non-GAAP guidance for the
first quarter and full year 2018 as indicated below (numbers in
millions, except per share data):
|
Reconciliation of Loss from Operations to Non-GAAP Adjusted
Loss from Operations Guidance (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
First Quarter 2018
|
|
|
Full Year 2018
|
|
|
|
Low
|
|
|
High
|
|
|
Low
|
|
|
High
|
Loss from operations
|
|
|
$
|
(4.0
|
)
|
|
|
$
|
(3.4
|
)
|
|
|
$
|
(12.8
|
)
|
|
|
$
|
(9.8
|
)
|
Stock-based compensation
|
|
|
1.7
|
|
|
|
1.7
|
|
|
|
6.2
|
|
|
|
6.2
|
|
Non-GAAP adjusted loss from operations
|
|
|
$
|
(2.3
|
)
|
|
|
$
|
(1.7
|
)
|
|
|
$
|
(6.6
|
)
|
|
|
$
|
(3.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Loss per Share to Non-GAAP Adjusted Net
Loss per Share Guidance (1) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
First Quarter 2018
|
|
|
Full Year 2018
|
|
|
|
Low
|
|
|
High
|
|
|
Low
|
|
|
High
|
Net loss per share, basic and diluted
|
|
|
$
|
(0.16
|
)
|
|
|
$
|
(0.14
|
)
|
|
|
$
|
(0.50
|
)
|
|
|
$
|
(0.40
|
)
|
Stock-based compensation
|
|
|
0.06
|
|
|
|
0.06
|
|
|
|
0.21
|
|
|
|
0.21
|
|
Non-GAAP adjusted net loss per share, basic and diluted
|
|
|
$
|
(0.10
|
)
|
|
|
$
|
(0.08
|
)
|
|
|
$
|
(0.29
|
)
|
|
|
$
|
(0.19
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) This assumes weighted average shares outstanding -
basic and diluted
|
|
|
29.0
|
|
|
|
29.0
|
|
|
|
30.0
|
|
|
|
30.0
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20180215006329/en/
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|