| [February 15, 2018] |
 |
MuleSoft Announces Financial Results for the Fourth Quarter and Fiscal Year 2017
MuleSoft, Inc. (NYSE: MULE), provider of the leading platform for
building application networks, today announced financial results for its
fourth quarter and fiscal year 2017, ended December 31, 2017.
"Robust market demand and strong sales execution enabled us to deliver
fourth quarter and fiscal 2017 revenue well ahead of expectations," said
Greg Schott, chairman and CEO of MuleSoft. "We are excited about
MuleSoft's growth opportunity and expect to reach $1 billion in total
revenue in 2021. Our disruptive platform is addressing one of the
largest areas of enterprise IT spend, and we're confident in our
long-term strategy to become the de facto application network platform
for our customers to become more agile and to transform their
businesses."
Fourth Quarter 2017 Financial Highlights:
-
Revenue: Total revenue was $88.7 million in Q4 2017, an
increase of 60% year-over-year. Subscription and support revenue was
$70.6 million, an increase of 57% year-over-year. Professional
services and other revenue was $18.1 million, an increase of 75%
year-over-year.
-
Gross margin: GAAP gross margin was 71.2% in Q4 2017, compared
to 72.7% in the year ago period. Non-GAAP gross margin was 72.9% in Q4
2017, compared to 73.2% in the year-ago period. On a non-GAAP basis,
gross margin for subscription and support and professional services
revenue each increased year-over-year; however, total gross margin
decreased due to the higher mix of services revenue, which has a lower
gross margin than subscription and support.
-
Operating loss: GAAP operating loss was $25.5 million in Q4
2017, compared to a GAAP operating loss of $12.8 million in the
year-ago period. Non-GAAP operating loss in Q4 2017 was $16.0 million,
compared to a non-GAAP operating loss of $10.6 million in the year-ago
period. Non-GAAP sales and marketing expense as a percentage of
revenue improved to 59% compared to 62% a year ago, despite higher
commissions as a result of strong sales activity in the quarter.
-
Net loss per share: GAAP net loss per share attributable to
common stockholders was $0.19 based on 130.4 million weighted-average
shares outstanding in Q4 2017, compared to GAAP net loss per share
attributable to common stockholders of $0.52 based on 25.4 million
weighted-average shares outstanding in Q4 2016.
Non-GAAP
net loss per share attributable to common stockholders was $0.12 based
on 130.4 million non-GAAP weighted-average shares outstanding in Q4
2017, compared to non-GAAP net loss per share attributable to common
stockholders of $0.10 based on 112.6 million non-GAAP weighted-average
shares outstanding in Q4 2016.
-
Deferred revenue: Total deferred revenue was $211.4 million at
the end of Q4 2017, an increase of 56% year-over-year. Short-term
deferred revenue was $202.0 million at the end of Q4 2017, an increase
of 55% year-over-year.
-
Cash: Cash provided by (used in) operating activities was $8.9
million in Q4 2017, compared to ($8.6) million in the year-ago period.
Free cash flow, which is a non-GAAP measure that reflects cash from
operating activities less cash used for capital expenditures, was $7.6
million for Q4 2017, compared to ($10.9) million in the year-ago
period.
Cash, cash equivalents, and investments totaled
$347.3 million at the end of Q4 2017.
Fiscal Year 2017 Financial Highlights:
-
Revenue: Total revenue was $296.5 million in FY 2017, an
increase of 58% year-over-year. Subscription and support revenue was
$238.0 million, an increase of 56% year-over-year. Professional
services and other revenue was $58.5 million, an increase of 68%
year-over-year.
-
Gross margin: GAAP gross margin was 72.6% in FY 2017, compared
to 73.9% in the year-ago period. Non-GAAP gross margin was 74.1% in FY
2017, compared to 74.4% in the year-ago period. On a non-GAAP basis,
gross margin for both subscription and support and professional
services revenue increased year-over-year; however, total gross margin
decreased due to the higher mix of services revenue, which has a lower
gross margin than subscription and support.
-
Operating loss: GAAP operating loss was $79.8 million in FY
2017, compared to a GAAP operating loss of $48.4 million in the
year-ago period. Non-GAAP operating loss in FY 2017 was $51.7 million,
compared to a non-GAAP operating loss of $31.9 million in the year-ago
period.
-
Net loss per share: GAAP net loss per share attributable to
common stockholders was $0.75 based on 106.7 million weighted-average
shares outstanding in FY 2017, compared to GAAP net loss per share
attributable to common stockholders of $2.73 based on 21.6 million
weighted-average shares outstanding in FY 2016.
Non-GAAP
net loss per share attributable to common stockholders was $0.41 based
on 125.8 million non-GAAP weighted-average shares outstanding in FY
2017, compared to non-GAAP net loss per share attributable to common
stockholders of $0.30 based on 110.9 million non-GAAP weighted-average
shares outstanding in FY 2016.
-
Cash: Cash provided by (used in) operating activities was $2.0
million in FY 2017, compared to ($2.4) million in the year-ago period.
Free cash flow, which is a non-GAAP measure that reflects cash from
operating activities less cash used for capital expenditures, was
($2.9) million in FY 2017, compared to ($6.9) million in the year-ago
period.
Other Fourth Quarter 2017 and Fiscal Year 2017 Highlights:
-
Appointment of Two New Board Members: MuleSoft appointed Yvonne
Wassenaar and Marcus Ryu to its board of directors. Wassenaar and Ryu
bring a combined 40 years of technology leadership experience to
MuleSoft. Wassenaar is currently the CEO of Airware, a leading
enterprise drone analytics company. Ryu is the CEO and co-founder of
Guidewire Software, a leading provider of software to the global
property-casualty industry.
-
Forty-five customers with over $1.0 million in annual contract
value: Executing successfully on its land-and-expand strategy and
delivering value to customers, MuleSoft ended 2017 with 45 customers
with over $1.0 million in annual contract value, up from 30 at
year-end 2016.
-
Top Place to Work in Multiple Geographies: MuleSoft was ranked
the #1 Top Workplace for mid-sized companies by the Bay Area News
Group, owner of the San Jose Mercury News. It is the fifth consecutive
year that MuleSoft has been named a top employer on the list. In
addition, MuleSoft was named one of the Best Places to Work for a
third time by the San Francisco Business Times and Silicon Valley
Business Journal. Additionally, MuleSoft received accolades for being
a top place to work in Australia, Argentina, and the United Kingdom.
Financial Outlook:
MuleSoft is providing guidance for its first quarter ending March 31,
2018 as follows:
-
Total revenue between $87 million and $90 million
-
Non-GAAP operating loss between $10 million and $13 million
-
Non-GAAP net loss per share between $0.07 and $0.09
-
Weighted-average shares outstanding of approximately 131 million
MuleSoft is also providing guidance for the fiscal year ending December
31, 2018 as follows:
-
Total revenue between $405 million and $415 million
-
Non-GAAP operating loss between $35 million and $40 million
-
Non-GAAP net loss per share between $0.26 and $0.30
-
Non-GAAP weighted-average shares outstanding of approximately 133
million
All forward-looking non-GAAP measures exclude estimates for stock-based
compensation ("SBC") expenses. We do not provide reconciliations of our
forward-looking non-GAAP financial measures to the corresponding GAAP
measures due to the high variability and difficulty in making accurate
forecasts and projections with respect to SBC expenses, which are
excluded from these non-GAAP measures. SBC expenses are impacted by
future hiring and retention needs, as well as the future fair market
value of our common stock, all of which are difficult to predict and
subject to change. The actual amounts of the excluded SBC expenses will
have a significant impact on our GAAP operating loss and GAAP net income
(loss) per share. Accordingly, reconciliations of our forward-looking
non-GAAP financial measures to the corresponding GAAP measures are not
available.
Conference Call Information:
MuleSoft will host a conference call at 2 p.m. Pacific Time (5 p.m.
Eastern Time) today, February 15, 2018, to discuss its financial
results. A live webcast of the call will be available on the MuleSoft
website at investors.mulesoft.com. A live dial-in will be available at
(844) 340-9044 for domestic participants and at (412) 858-5204 for
international participants.
About MuleSoft
MuleSoft's mission is to help organizations change and innovate faster
by making it easy to connect the world's applications, data and devices.
With its API-led approach to connectivity, MuleSoft's market-leading
Anypoint Platform™ is enabling over 1,200 organizations in approximately
60 countries to build application networks. For more information, visit
https://www.mulesoft.com.
Forward-Looking Statements
This press release and the accompanying conference call contain
forward-looking statements including, among others, statements about
demand for our products and customer adoption; our expectations
regarding benefits we expect our customers to receive from our platform
and recently announced enhancements; future expansion opportunities; the
benefits of partner engagements; our planned investments to capitalize
on our market position and continue our growth; our current estimates of
fiscal year 2021 revenue; our current estimates of first quarter and
fiscal year 2018 revenue, non-GAAP operating loss, non-GAAP net loss per
share, and GAAP and non-GAAP weighted-average shares outstanding;
statements regarding our business and growth strategy; our expectations
relating to quarterly gross margins and our ability to leverage in sales
and marketing as we scale; our expectations relating to the revenue mix
from our products and services; our expectations relating to the
variability and growth of our dollar-based net retention rate; the
impact of new accounting standards and changes in our accounting
policies; our expectations relating to our continued investment in our
business, and the continued strength of the market we serve.
These forward-looking statements involve risks and uncertainties. If any
of these risks or uncertainties materialize, or if any of our
assumptions prove incorrect, our actual results could differ materially
from the results expressed or implied by these forward-looking
statements. These risks and uncertainties include risks associated with:
our limited operating history in a new and unproven market; engagement
of our customers, including through renewals of subscriptions and
expanded use of our platform, and our ability to attract new customers;
our ability to continue to successfully enhance our platform and develop
new services to meet the needs of our customers and address future
advances in technology; risks associated with managing our rapid growth,
including our ability to maintain our rate of revenue growth and manage
our expenses and investment plans; execution of our plans and
strategies, including our strategy to target larger organizations for
sales of our platform; our ability to maintain and continually develop
our technology and network infrastructure to ensure that customers can
access our platform at any time and within an acceptable amount of time;
increasing competition; our ability to recruit and retain our employees;
general economic, market and business conditions; and the risks
described in the other filings we make with the Securities and Exchange
Commission from time to time, including the risks described under the
heading "Risk Factors" in our Quarterly Report on Form 10-Q for the
quarter ended September 30, 2017, which was filed with the Securities
and Exchange Commission on November 2, 2017, and which should be read in
conjunction with our financial results, and is available on the SEC
filings section of the Investor Relations page of our website at
https://investors.mulesoft.com/. All forward-looking statements in this
press release are based on information available to us as of the date
hereof, and we do not assume any obligation to update the
forward-looking statements provided to reflect events that occur or
circumstances that exist after the date on which they were made.
Non-GAAP Financial Measures
To supplement its consolidated financial statements, which are prepared
and presented in accordance with GAAP, MuleSoft provides investors with
certain non-GAAP financial measures, including non-GAAP gross margin,
non-GAAP operating loss, non-GAAP net loss, non-GAAP net loss per share
attributable to common stockholders, non-GAAP weighted-average share
count, and non-GAAP free cash flow. The presentation of these non-GAAP
financial measures 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. For more information on these
non-GAAP financial measures, please see the reconciliation of these
non-GAAP financial measures to their nearest comparable GAAP measures at
the end of this press release.
We use these non-GAAP financial 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 provide
meaningful supplemental information regarding MuleSoft's performance by
excluding certain expenses that may not be indicative of our recurring
core business operating results. We believe that both management and
investors benefit from referring to these non-GAAP financial measures in
assessing MuleSoft's performance and when planning, forecasting, and
analyzing future periods. These non-GAAP financial measures also
facilitate management's internal comparisons to our historical
performance as well as comparisons to our competitors' operating
results. We believe these non-GAAP financial measures are useful to
investors both because (1) they allow for greater transparency with
respect to measures used by management in its financial and operational
decision-making and (2) they are used by our investors and the analyst
community to help them analyze the health of our business.
A limitation of non-GAAP financial measures is that they do not have
uniform definitions. Further, our definitions will likely differ from
the definitions used by other companies, including peer companies, and
therefore comparability may be limited. Thus, our non-GAAP financial
measures should be considered in addition to, and not as a substitute
for, in isolation from, or as superior to, measures prepared in
accordance with GAAP. Additionally, in the case of SBC expense, if we
did not pay a portion of compensation in the form of SBC expense, the
cash salary expense included in cost of revenue and operating expenses
would be higher, which would affect our cash position.
Non-GAAP gross margin and non-GAAP operating loss. We
define non-GAAP gross margin and non-GAAP operating loss as gross margin
and operating loss, respectively, excluding expenses related to SBC.
Although SBC is an important aspect of the compensation of our employees
and executives, determining the fair value of certain of the stock-based
instruments we utilize involves a high degree of judgment and estimation
and the expense recorded may bear little resemblance to the actual value
realized upon the vesting or future exercise of the related stock-based
awards. Furthermore, unlike cash compensation, the value of stock
options and shares purchased under our employee stock purchase plan
("ESPP"), which are elements of our ongoing SBC expense, is determined
using a complex formula that incorporates factors, such as market
volatility, that are beyond our control. For restricted stock unit
awards, the amount of SBC expenses may not reflect the value ultimately
received by the grant recipients. Management believes it is useful to
exclude SBC in order to better understand the long-term performance of
our core business and to facilitate comparison of our results to those
of peer companies.
Non-GAAP net loss and non-GAAP net loss per share attributable to
common stockholders. We define non-GAAP net loss as net loss
excluding expenses related to SBC. We define non-GAAP net loss per share
attributable to common stockholders as non-GAAP net loss divided by the
non-GAAP weighted-average outstanding shares.
The accompanying tables have more details on the reconciliations of
non-GAAP financial measures to their nearest comparable GAAP measures.
MuleSoft is a registered trademark of MuleSoft, Inc. All other marks
are those of respective owners.
|
|
|
|
|
MULESOFT, INC.
|
|
Consolidated Balance Sheets
|
|
(in thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
2017
|
|
2016
|
|
Assets
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
79,568
|
|
|
$
|
35,101
|
|
|
Investments
|
|
124,603
|
|
|
63,361
|
|
|
Trade receivables, net of allowance for doubtful accounts of $527
and $446 as of December 31, 2017 and December 31, 2016
|
|
111,863
|
|
|
72,324
|
|
|
Prepaid expenses and other current assets
|
|
18,987
|
|
|
18,854
|
|
|
Total current assets
|
|
335,021
|
|
|
189,640
|
|
|
Investments, noncurrent
|
|
143,108
|
|
|
4,151
|
|
|
Property and equipment, net
|
|
6,791
|
|
|
5,231
|
|
|
Restricted cash
|
|
784
|
|
|
671
|
|
|
Goodwill
|
|
814
|
|
|
787
|
|
|
Intangible assets, net
|
|
789
|
|
|
1,797
|
|
|
Other assets
|
|
5,289
|
|
|
661
|
|
|
Total assets
|
|
$
|
492,596
|
|
|
$
|
202,938
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
2,219
|
|
|
$
|
1,879
|
|
|
Accrued expenses
|
|
12,158
|
|
|
7,797
|
|
|
Accrued compensation and related expenses
|
|
31,065
|
|
|
16,369
|
|
|
Deferred revenue, current
|
|
201,976
|
|
|
130,045
|
|
|
Total current liabilities
|
|
247,418
|
|
|
156,090
|
|
|
Deferred revenue, noncurrent
|
|
9,456
|
|
|
5,569
|
|
|
Other liabilities
|
|
2,775
|
|
|
1,176
|
|
|
Total liabilities
|
|
259,649
|
|
|
162,835
|
|
|
Stockholders' equity:
|
|
|
|
|
|
Convertible preferred stock
|
|
-
|
|
|
255,946
|
|
|
Common stock
|
|
3
|
|
|
1
|
|
|
Additional paid-in capital
|
|
552,260
|
|
|
22,241
|
|
|
Accumulated deficit
|
|
(316,218
|
)
|
|
(236,230
|
)
|
|
Accumulated other comprehensive loss
|
|
(3,098
|
)
|
|
(1,855
|
)
|
|
Total stockholders' equity
|
|
232,947
|
|
|
40,103
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
492,596
|
|
|
$
|
202,938
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MULESOFT, INC.
|
|
Condensed Consolidated Statements of Operations
|
|
(in thousands, except share and per share amounts)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
Subscription and support
|
|
|
$
|
70,605
|
|
|
$
|
45,006
|
|
|
$
|
237,980
|
|
|
$
|
152,843
|
|
|
Professional services and other
|
|
|
18,109
|
|
|
10,347
|
|
|
58,476
|
|
|
34,904
|
|
|
Total revenue
|
|
|
88,714
|
|
|
55,353
|
|
|
296,456
|
|
|
187,747
|
|
|
Cost of revenue: (1)
|
|
|
|
|
|
|
|
|
|
|
Subscription and support
|
|
|
6,062
|
|
|
4,182
|
|
|
20,001
|
|
|
13,722
|
|
|
Professional services and other
|
|
|
19,521
|
|
|
10,952
|
|
|
61,269
|
|
|
35,341
|
|
|
Total cost of revenue
|
|
|
25,583
|
|
|
15,134
|
|
|
81,270
|
|
|
49,063
|
|
|
Gross profit
|
|
|
63,131
|
|
|
40,219
|
|
|
215,186
|
|
|
138,684
|
|
|
Operating expenses: (1)
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
18,608
|
|
|
9,969
|
|
|
64,585
|
|
|
32,862
|
|
|
Sales and marketing
|
|
|
56,933
|
|
|
35,190
|
|
|
184,583
|
|
|
122,630
|
|
|
General and administrative
|
|
|
13,058
|
|
|
7,896
|
|
|
45,813
|
|
|
31,577
|
|
|
Total operating expenses
|
|
|
88,599
|
|
|
53,055
|
|
|
294,981
|
|
|
187,069
|
|
|
Loss from operations
|
|
|
(25,468
|
)
|
|
(12,836
|
)
|
|
(79,795
|
)
|
|
(48,385
|
)
|
|
Interest income
|
|
|
1,000
|
|
|
151
|
|
|
2,483
|
|
|
465
|
|
|
Other income (expense), net
|
|
|
(394
|
)
|
|
8
|
|
|
(1,015
|
)
|
|
(340
|
)
|
|
Net loss before provision for income taxes
|
|
|
(24,862
|
)
|
|
(12,677
|
)
|
|
(78,327
|
)
|
|
(48,260
|
)
|
|
Provision for income taxes
|
|
|
226
|
|
|
414
|
|
|
1,653
|
|
|
1,339
|
|
|
Net loss
|
|
|
$
|
(25,088
|
)
|
|
$
|
(13,091
|
)
|
|
$
|
(79,980
|
)
|
|
$
|
(49,599
|
)
|
|
Net loss attributable to common stockholders
|
|
|
$
|
(25,088
|
)
|
|
$
|
(13,091
|
)
|
|
$
|
(79,980
|
)
|
|
$
|
(59,035
|
)
|
|
Net loss per share attributable to common stockholders, basic and
diluted
|
|
|
$
|
(0.19
|
)
|
|
$
|
(0.52
|
)
|
|
$
|
(0.75
|
)
|
|
$
|
(2.73
|
)
|
|
Weighted-average shares used in computing net loss per share, basic
and diluted
|
|
|
130,423,175
|
|
|
25,364,224
|
|
|
106,742,923
|
|
|
21,623,610
|
|
|
(1) Includes stock-based compensation expenses, and other
compensation expenses related to the 2016 Tender Offer as follows
(in thousands):
|
|
|
|
|
|
|
|
|
|
|
Cost of subscription and support revenue
|
|
|
$
|
320
|
|
|
$
|
90
|
|
|
$
|
945
|
|
|
$
|
255
|
|
|
Cost of professional services and other revenue
|
|
|
1,172
|
|
|
188
|
|
|
3,442
|
|
|
675
|
|
|
Research and development
|
|
|
2,428
|
|
|
625
|
|
|
6,994
|
|
|
2,831
|
|
|
Sales and marketing
|
|
|
4,166
|
|
|
844
|
|
|
12,646
|
|
|
8,619
|
|
|
General and administrative
|
|
|
1,352
|
|
|
457
|
|
|
4,043
|
|
|
4,120
|
|
|
Total stock-based compensation expenses
|
|
|
$
|
9,438
|
|
|
$
|
2,204
|
|
|
$
|
28,070
|
|
|
$
|
16,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MULESOFT, INC.
|
|
Condensed Consolidated Statements of Cash Flows
|
|
(in thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(25,088
|
)
|
|
$
|
(13,091
|
)
|
|
$
|
(79,980
|
)
|
|
$
|
(49,599
|
)
|
|
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities:
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
9,438
|
|
|
2,204
|
|
|
28,070
|
|
|
6,552
|
|
|
Other non-cash compensation related to 2016 Tender Offer
|
|
-
|
|
|
-
|
|
|
-
|
|
|
9,948
|
|
|
Depreciation and amortization
|
|
1,006
|
|
|
746
|
|
|
3,833
|
|
|
1,949
|
|
|
Amortization of investment premiums
|
|
284
|
|
|
125
|
|
|
766
|
|
|
559
|
|
|
Provision for doubtful accounts
|
|
(180
|
)
|
|
(75
|
)
|
|
81
|
|
|
206
|
|
|
Tax benefits from employee stock plans
|
|
-
|
|
|
95
|
|
|
-
|
|
|
321
|
|
|
Loss on disposal of property and equipment
|
|
74
|
|
|
-
|
|
|
134
|
|
|
6
|
|
|
Other
|
|
-
|
|
|
-
|
|
|
-
|
|
|
13
|
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Trade receivables
|
|
(27,606
|
)
|
|
(25,598
|
)
|
|
(39,658
|
)
|
|
(25,106
|
)
|
|
Prepaid expenses and other current assets
|
|
(407
|
)
|
|
(9,112
|
)
|
|
(2,024
|
)
|
|
(6,836
|
)
|
|
Other assets
|
|
(3,022
|
)
|
|
(91
|
)
|
|
(4,628
|
)
|
|
(343
|
)
|
|
Accounts payable
|
|
873
|
|
|
(66
|
)
|
|
380
|
|
|
1,090
|
|
|
Accrued expenses
|
|
(517
|
)
|
|
(415
|
)
|
|
4,637
|
|
|
1,127
|
|
|
Accrued compensation and related expenses
|
|
13,199
|
|
|
6,468
|
|
|
12,759
|
|
|
4,705
|
|
|
Other liabilities
|
|
441
|
|
|
600
|
|
|
1,599
|
|
|
1,096
|
|
|
Deferred revenue
|
|
40,409
|
|
|
29,575
|
|
|
76,012
|
|
|
51,931
|
|
|
Net cash provided by (used in) operating activities
|
|
8,904
|
|
|
(8,635
|
)
|
|
1,981
|
|
|
(2,381
|
)
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
Purchases of investments
|
|
(58,289
|
)
|
|
(19,259
|
)
|
|
(319,709
|
)
|
|
(41,214
|
)
|
|
Sales of investments
|
|
40,051
|
|
|
-
|
|
|
42,476
|
|
|
24,536
|
|
|
Maturities of investments
|
|
27,050
|
|
|
21,100
|
|
|
74,957
|
|
|
39,650
|
|
|
Purchases of property and equipment
|
|
(1,287
|
)
|
|
(2,310
|
)
|
|
(4,835
|
)
|
|
(4,501
|
)
|
|
Business combinations, net of cash acquired
|
|
-
|
|
|
(1,000
|
)
|
|
(106
|
)
|
|
(1,000
|
)
|
|
Net cash provided by (used in) investing activities
|
|
7,525
|
|
|
(1,469
|
)
|
|
(207,217
|
)
|
|
17,471
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
Net proceeds from issuance of common stock in initial public offering
|
|
-
|
|
|
-
|
|
|
236,360
|
|
|
-
|
|
|
Proceeds from employee stock purchase plan
|
|
2,552
|
|
|
-
|
|
|
7,031
|
|
|
-
|
|
|
Repurchase of common shares
|
|
-
|
|
|
(601
|
)
|
|
-
|
|
|
(3,208
|
)
|
|
Proceeds from issuance of common stock upon exercise of options and
warrants
|
|
4,565
|
|
|
1,375
|
|
|
7,998
|
|
|
4,281
|
|
|
Payments of costs related to initial public offering
|
|
-
|
|
|
(1,730
|
)
|
|
(1,823
|
)
|
|
(1,730
|
)
|
|
Net cash provided by (used in) financing activities
|
|
7,117
|
|
|
(956
|
)
|
|
249,566
|
|
|
(657
|
)
|
|
Impact of foreign exchange on cash and cash equivalents
|
|
(136
|
)
|
|
(539
|
)
|
|
250
|
|
|
(1,044
|
)
|
|
Net increase (decrease) in cash
|
|
23,410
|
|
|
(11,599
|
)
|
|
44,580
|
|
|
13,389
|
|
|
Cash, cash equivalents and restricted cash, Beginning of period
|
|
56,942
|
|
|
47,371
|
|
|
35,772
|
|
|
22,383
|
|
|
Cash, cash equivalents and restricted cash, End of period
|
|
$
|
80,352
|
|
|
$
|
35,772
|
|
|
$
|
80,352
|
|
|
$
|
35,772
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
|
|
|
|
Cash paid for income taxes
|
|
$
|
117
|
|
|
$
|
323
|
|
|
$
|
1,084
|
|
|
$
|
764
|
|
|
Supplemental disclosures of non-cash investing and financing
information:
|
|
|
|
|
|
|
|
|
|
Deemed dividends on preferred stock
|
|
$
|
-
|
|
|
$
|
9,436
|
|
|
$
|
-
|
|
|
$
|
9,436
|
|
|
Costs related to the initial public offering, accrued but unpaid
|
|
$
|
-
|
|
|
$
|
266
|
|
|
$
|
-
|
|
|
$
|
266
|
|
|
Liability for purchase of property and equipment
|
|
$
|
41
|
|
|
$
|
91
|
|
|
$
|
41
|
|
|
$
|
91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MULESOFT, INC.
|
|
Reconciliation of GAAP to Non-GAAP Financial Measures
|
|
(in thousands, except share and per share amounts)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Cost of subscription and support revenue on a GAAP basis
|
|
|
$
|
6,062
|
|
|
$
|
4,182
|
|
|
$
|
20,001
|
|
|
$
|
13,722
|
|
|
Stock-based compensation expenses
|
|
|
(320
|
)
|
|
(90
|
)
|
|
(945
|
)
|
|
(255
|
)
|
|
Cost of subscription and support revenue on a non-GAAP basis
|
|
|
$
|
5,742
|
|
|
$
|
4,092
|
|
|
$
|
19,056
|
|
|
$
|
13,467
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin on subscription and support revenue on a GAAP basis
|
|
|
91.4
|
%
|
|
90.7
|
%
|
|
91.6
|
%
|
|
91.0
|
%
|
|
Stock-based compensation expenses
|
|
|
0.5
|
%
|
|
0.2
|
%
|
|
0.4
|
%
|
|
0.2
|
%
|
|
Gross margin on subscription and support revenue on a non-GAAP basis
|
|
|
91.9
|
%
|
|
90.9
|
%
|
|
92.0
|
%
|
|
91.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of professional services and other revenue on a GAAP basis
|
|
|
$
|
19,521
|
|
|
$
|
10,952
|
|
|
$
|
61,269
|
|
|
$
|
35,341
|
|
|
Stock-based compensation expenses
|
|
|
(1,172
|
)
|
|
(188
|
)
|
|
(3,442
|
)
|
|
(675
|
)
|
|
Cost of professional services and other revenue on a non-GAAP basis
|
|
|
$
|
18,349
|
|
|
$
|
10,764
|
|
|
$
|
57,827
|
|
|
$
|
34,666
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin on professional services and other revenue on a GAAP
basis
|
|
|
(7.8
|
)%
|
|
(5.8
|
)%
|
|
(4.8
|
)%
|
|
(1.3
|
)%
|
|
Stock-based compensation expenses
|
|
|
6.5
|
%
|
|
1.8
|
%
|
|
5.9
|
%
|
|
1.9
|
%
|
|
Gross margin on professional services and other revenue on a
non-GAAP basis
|
|
|
(1.3
|
)%
|
|
(4.0
|
)%
|
|
1.1
|
%
|
|
0.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit on a GAAP basis
|
|
|
$
|
63,131
|
|
|
$
|
40,219
|
|
|
$
|
215,186
|
|
|
$
|
138,684
|
|
|
Stock-based compensation expenses
|
|
|
1,492
|
|
|
278
|
|
|
4,387
|
|
|
930
|
|
|
Gross profit on a non-GAAP basis
|
|
|
$
|
64,623
|
|
|
$
|
40,497
|
|
|
$
|
219,573
|
|
|
$
|
139,614
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin on total revenue on a GAAP basis
|
|
|
71.2
|
%
|
|
72.7
|
%
|
|
72.6
|
%
|
|
73.9
|
%
|
|
Stock-based compensation expenses
|
|
|
1.7
|
%
|
|
0.5
|
%
|
|
1.5
|
%
|
|
0.5
|
%
|
|
Gross margin on total revenue on a non-GAAP basis
|
|
|
72.9
|
%
|
|
73.2
|
%
|
|
74.1
|
%
|
|
74.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development expenses on a GAAP basis
|
|
|
$
|
18,608
|
|
|
$
|
9,969
|
|
|
$
|
64,585
|
|
|
$
|
32,862
|
|
|
Stock-based compensation expenses
|
|
|
(2,428
|
)
|
|
(625
|
)
|
|
(6,994
|
)
|
|
(2,831
|
)
|
|
Research and development expenses on a non-GAAP basis
|
|
|
$
|
16,180
|
|
|
$
|
9,344
|
|
|
$
|
57,591
|
|
|
$
|
30,031
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing expenses on a GAAP basis
|
|
|
$
|
56,933
|
|
|
$
|
35,190
|
|
|
$
|
184,583
|
|
|
$
|
122,630
|
|
|
Stock-based compensation expenses
|
|
|
(4,166
|
)
|
|
(844
|
)
|
|
(12,646
|
)
|
|
(8,619
|
)
|
|
Sales and marketing expenses on a non-GAAP basis
|
|
|
$
|
52,767
|
|
|
$
|
34,346
|
|
|
$
|
171,937
|
|
|
$
|
114,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses on a GAAP basis
|
|
|
$
|
13,058
|
|
|
$
|
7,896
|
|
|
$
|
45,813
|
|
|
$
|
31,577
|
|
|
Stock-based compensation expenses
|
|
|
(1,352
|
)
|
|
(457
|
)
|
|
(4,043
|
)
|
|
(4,120
|
)
|
|
General and administrative expenses on a non-GAAP basis
|
|
|
$
|
11,706
|
|
|
$
|
7,439
|
|
|
$
|
41,770
|
|
|
$
|
27,457
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses on a GAAP basis
|
|
|
$
|
88,599
|
|
|
$
|
53,055
|
|
|
$
|
294,981
|
|
|
$
|
187,069
|
|
|
Stock-based compensation expenses
|
|
|
(7,946
|
)
|
|
(1,926
|
)
|
|
(23,683
|
)
|
|
(15,570
|
)
|
|
Total operating expenses on a non-GAAP basis
|
|
|
$
|
80,653
|
|
|
$
|
51,129
|
|
|
$
|
271,298
|
|
|
$
|
171,499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss on a GAAP basis
|
|
|
$
|
(25,468
|
)
|
|
$
|
(12,836
|
)
|
|
$
|
(79,795
|
)
|
|
$
|
(48,385
|
)
|
|
Stock-based compensation expenses
|
|
|
9,438
|
|
|
2,204
|
|
|
28,070
|
|
|
16,500
|
|
|
Operating loss on a non-GAAP basis
|
|
|
$
|
(16,030
|
)
|
|
$
|
(10,632
|
)
|
|
$
|
(51,725
|
)
|
|
$
|
(31,885
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to common stockholders on a GAAP basis
|
|
|
$
|
(25,088
|
)
|
|
$
|
(13,091
|
)
|
|
$
|
(79,980
|
)
|
|
$
|
(59,035
|
)
|
|
Deemed dividend to preferred stockholders from 2016 Tender Offer
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
9,436
|
|
|
Stock-based compensation expenses
|
|
|
9,438
|
|
|
2,204
|
|
|
28,070
|
|
|
16,500
|
|
|
Net loss on a non-GAAP basis
|
|
|
$
|
(15,650
|
)
|
|
$
|
(10,887
|
)
|
|
$
|
(51,910
|
)
|
|
$
|
(33,099
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share attributable to common stockholders, basic and
diluted
|
|
|
$
|
(0.19
|
)
|
|
$
|
(0.52
|
)
|
|
$
|
(0.75
|
)
|
|
$
|
(2.73
|
)
|
|
Deemed dividend to preferred stockholders from 2016 Tender Offer
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.44
|
|
|
Stock-based compensation expenses
|
|
|
0.07
|
|
|
0.09
|
|
|
0.26
|
|
|
0.76
|
|
|
Convertible preferred stock
|
|
|
-
|
|
|
0.33
|
|
|
0.08
|
|
|
1.23
|
|
|
Net loss per share attributable to common stockholders, basic and
diluted, on a non-GAAP basis
|
|
|
$
|
(0.12
|
)
|
|
$
|
(0.10
|
)
|
|
$
|
(0.41
|
)
|
|
$
|
(0.30
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP weighted-average shares used to compute net loss per share
attributable to common stockholders, basic and diluted
|
|
|
130,423,175
|
|
|
25,364,224
|
|
|
106,742,923
|
|
|
21,623,610
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible preferred shares issued and outstanding at beginning of
the period
|
|
|
-
|
|
|
87,200,703
|
|
|
19,091,802
|
|
|
89,296,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP weighted-average shares used to compute Non-GAAP net loss
per share attributable to common stockholders, basic and diluted
|
|
|
130,423,175
|
|
|
112,564,927
|
|
|
125,834,725
|
|
|
110,919,770
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table presents a reconciliation of free cash flow to net
cash provided by (used in) operating activities, the most directly
comparable financial measure calculated in accordance with generally
accepted accounting principles, or GAAP:
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Net cash provided by (used in) operating activities
|
|
$
|
8,904
|
|
|
$
|
(8,635
|
)
|
|
$
|
1,981
|
|
|
$
|
(2,381
|
)
|
|
Less: Purchases of property and equipment
|
|
(1,287
|
)
|
|
(2,310
|
)
|
|
(4,835
|
)
|
|
(4,501
|
)
|
|
Free cash flow
|
|
$
|
7,617
|
|
|
$
|
(10,945
|
)
|
|
$
|
(2,854
|
)
|
|
$
|
(6,882
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20180215006431/en/
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