[February 07, 2019] |
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Carbonite Announces Fourth Quarter and Full Year 2018 Financial Results
Carbonite, Inc. (NASDAQ: CARB), a global leader in data protection,
today announced financial results for the quarter and full year ended
December 31, 2018. Carbonite also announced that Linda Connly, a sales
and marketing veteran, has joined its Board of Directors.
Full Year 2018 Highlights:
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Revenue of $296.4 million increased 24% year-over-year.
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Non-GAAP revenue of $301.9 million increased 23% year-over-year.1
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Net income was $7.6 million, compared to net loss of ($4.0) million in
2017.
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Net income (loss) per share was $0.24 (basic) and $0.22 (diluted), as
compared to ($0.14) in 2017 (basic and diluted).
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Non-GAAP net income per share was $1.80 (basic) and $1.66 (diluted),
as compared to $0.82 (basic) and $0.79 (diluted) in 2017.2
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Adjusted EBITDA of $77.0 million, or 26% of non-GAAP revenue, compared
to $38.9 million, or 16% of non-GAAP revenue in 2017.3
"We delivered on our strategic priorities in 2018," said Mohamad Ali,
CEO of Carbonite. "We significantly strengthened our product platform
and introduced one of the most complete Software-as-a-Service data
protection portfolios in the market; we did this while successfully
continuing our acquisition integration work and driving meaningful
improvements in profitability. In 2019 we plan to build upon these
efforts, further expanding our data protection platform and delivering a
broader set of solutions to our customers, while we invest aggressively
in our distribution channels with a focus on driving continued growth
and profitability."
Recent Highlights:
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In a separate announcement, Carbonite today announced that it has
entered into a definitive agreement to acquire Webroot, Inc., a
leading cybersecurity company, for approximately $618.5 million in
cash. The Company will fund the transaction with existing cash on hand
and funds secured under a new credit facility. Following closing,
expected in the first quarter of 2019, the transaction is expected to
be immediately accretive on an earnings and cash flow basis.
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Linda Connly, a sales and marketing veteran with more than 25 years of
experience, was appointed to the Carbonite Board of Directors as a
Class II director.
The Company uses a variety of operational and financial metrics,
including non-GAAP financial measures, to evaluate its performance and
financial condition. The accompanying financial data includes additional
information regarding these metrics and a reconciliation of non-GAAP
financial information to GAAP. The presentation of non-GAAP financial
information should not be considered in isolation or as a substitute
for, or superior to, the financial information prepared and presented in
accordance with GAAP.
Fourth Quarter 2018 Results:
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Revenue for the fourth quarter was $77.0 million, an increase of 25%
from $61.7 million in the fourth quarter of 2017. Non-GAAP revenue for
the fourth quarter was $78.0 million, an increase of 24% from $62.8
million in the fourth quarter of 2017.1
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Bookings for the fourth quarter were $78.8 million, an increase of 31%
from $60.2 million in the fourth quarter of 2017.4
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Net income for the fourth quarter was $0.7 million, compared to net
loss of ($1.6) million in the fourth quarter of 2017. Non-GAAP net
income for the fourth quarter was $16.2 million, compared to non-GAAP
net income of $8.8 million in the fourth quarter of 2017.2
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Net income per share for the fourth quarter was $0.02 (basic and
diluted), compared to net loss per share of ($0.06) (basic and
diluted) in the fourth quarter of 2017. Non-GAAP net income per share
was $0.47 (basic) and $0.45 (diluted) for the fourth quarter, compared
to non-GAAP net income per share of $0.31 (basic) and $0.30 (diluted)
in the fourth quarter of 2017.2
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Adjusted EBITDA for the fourth quarter was $20.8 million, compared to
$13.0 million in the fourth quarter of 2017.3
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Gross margin for the fourth quarter was 71.2%, compared to 72.8% in
the fourth quarter of 2017. Non-GAAP gross margin was 77.9% in the
fourth quarter, compared to 77.6% in the fourth quarter of 2017.5
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Cash flow from operations for the fourth quarter was $19.8 million,
compared to $13.9 million in the fourth quarter of 2017. Adjusted free
cash flow for the fourth quarter was $17.1 million, compared to $9.7
million in the fourth quarter of 2017.6
Full Year 2018 Results:
-
Revenue for the full year was $296.4 million, an increase of 24% from
$239.5 million in 2017. Non-GAAP revenue for the full year was $301.9
million, an increase of 23% from $246.1 million in 2017.1
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Bookings for the full year were $307.0 million, an increase of 25%
from $245.9 million in 2017.4
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Net income for the full year was $7.6 million, compared to net loss of
($4.0) million in 2017. Non-GAAP net income for the full year was
$55.9 million, compared to non-GAAP net income of $22.8 million in
2017.2
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Net income per share for the full year was $0.24 (basic) and $0.22
(diluted), compared to net loss per share of ($0.14) (basic and
diluted) in 2017. Non-GAAP net income per share was $1.80 (basic) and
$1.66 (diluted) for the full year, compared to non-GAAP net income per
share of $0.82 (basic) and $0.79 (diluted) in 2017.2
-
Adjusted EBITDA for the full year was $77.0 million, compared to $38.9
million in 2017.3
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Gross margin for the full year was 71.2%, compared to 70.7% in 2017.
Non-GAAP gross margin for the full year was 77.4%, compared to 75.5%
in 2017.5
-
Cash flow from operations for the full year was $53.6 million,
compared to $31.2 million in 2017. Adjusted free cash flow for the
full year was $50.1 million, compared to $20.1 million in 2017.6
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1
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Non-GAAP revenue excludes the impact of purchase accounting
adjustments for acquisitions.
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2
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Non-GAAP net income and non-GAAP net income per share excludes the
impact of purchase accounting adjustments on acquired deferred
revenue, amortization expense on intangible assets, stock-based
compensation expense, litigation-related expense,
restructuring-related expense, acquisition-related expense,
intangible asset impairment charges, non-cash convertible debt
interest expense and the income tax effect of non-GAAP adjustments.
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3
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Adjusted EBITDA is calculated by excluding the impact of interest
expense, net, income taxes, depreciation, amortization, purchase
accounting adjustments on acquired deferred revenue, stock-based
compensation expense, litigation-related expense,
restructuring-related expense, intangible asset impairment charges
and acquisition-related expense from net income (loss).
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4
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Bookings represent the aggregate dollar value of customer
subscriptions and software arrangements, which may include multiple
revenue elements, such as software licenses, hardware, professional
services and post-contractual support, received during a period and
are calculated as revenue recognized during a particular period plus
the change in total deferred revenue, excluding deferred revenue
recorded in connection with acquisitions, divestitures and the
adoption impact of Topic 606, net of foreign exchange and the change
in unbilled revenue during the same period.
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5
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Non-GAAP gross margin excludes the impact of purchase accounting
adjustments on acquired deferred revenue, amortization expense on
intangible assets, stock-based compensation expense,
acquisition-related expense, and intangible asset impairment charges.
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6
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Adjusted free cash flow is calculated by subtracting the cash paid
for the purchase of property and equipment and adding the payments
related to acquisitions, restructuring, and litigation to net cash
provided by operating activities.
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About Linda Connly
Ms. Connly has extensive experience leading go-to-market transformations
within technology organizations. She currently serves as the interim
Managing Director, Americas, at Rackspace, a managed cloud computing
company, and is the Founder and CEO of The Connly Advisory Services, a
consulting practice that provides go-to-market advisory services. Prior
to these roles, she led the sales integration for Dell and EMC, the
largest tech merger in history, and led EMC's Global Inside Sales.
In addition to her corporate leadership experience, Ms. Connly has been
awarded a number of industry accolades, including the Boston Chamber of
Commerce Pinnacle Award for "Achievement in Management," and VAR
Business Magazine's "50 Most Powerful Women in Technology."
"Ms. Connly is an exceptional addition to our board and brings a
powerful combination of sales, marketing, and technology experience to
Carbonite," said Mohamad Ali, President and CEO at Carbonite. "She has
expertise in optimizing the go-to-market strategies for some of the most
successful technology organizations today and she will play a key role
in helping Carbonite execute on our long-term vision."
Business Outlook
Based on the information available as of February 7, 2019, Carbonite
expects the following for the first quarter and full year of 2019:
First Quarter 2019:
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Current Guidance (2/7/2019)
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GAAP Revenue
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$76.5 - $77.5 million
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Non-GAAP Revenue
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$77.0 - $78.0 million
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Adjusted EBITDA
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$20.0 - $21.5 million
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Full Year 2019:
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Current Guidance (2/7/2019)
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GAAP Revenue
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$468 - $482 million
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Non-GAAP Revenue
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$488 - $502 million
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Non-GAAP Gross Margin
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80.5% - 81.5%
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Adjusted EBITDA
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$129 - $134 million
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Carbonite's expectations of adjusted EBITDA for the first quarter and
full year of 2019 excludes the impact of interest expense, net, income
taxes, depreciation, amortization, purchase accounting adjustments on
acquired deferred revenue, stock-based compensation expense,
litigation-related expense, restructuring-related expense and
acquisition-related expense from net income (loss). The "Business
Outlook" above assumes nine months of contribution from Webroot.
Conference Call and Webcast Information
Carbonite will host a conference call on Thursday, February 7, 2018 at
5:30 p.m. ET to review these results and discuss its agreement to
acquire Webroot, announced separately today. This call will be webcast
live and can be found in the investor relations section of the Company's
website at http://investor.carbonite.com.
The conference call can also be accessed by dialing (877) 303-1393 in
the United States or (315) 625-3228 internationally with the passcode
9768609.
Following the completion of the call, a recorded replay will be
available on the Company's website, http://investor.carbonite.com,
under "Events & Presentations".
Non-GAAP Financial Measures
To supplement our consolidated financial statements presented in
accordance with GAAP, this press release contains non-GAAP financial
measures, including bookings, non-GAAP revenue, non-GAAP business
revenue, non-GAAP consumer revenue, non-GAAP gross margin, non-GAAP net
income and non-GAAP net income per share, non-GAAP operating expense,
adjusted EBITDA and adjusted free cash flow.
The Company believes that these non-GAAP measures of financial results
provide useful information to management and investors regarding certain
financial and business trends relating to the Company's financial
condition and ordinary results of operations. The Company's management
uses these non-GAAP measures to compare the Company's performance to
that of prior periods and uses these measures in financial reports
prepared for management and the Company's board of directors. The
Company believes that the use of these non-GAAP financial measures
provides an additional tool for investors to use in evaluating ongoing
operating results and trends and in comparing the Company's financial
measures with other software-as-a-service companies, many of which
present similar non-GAAP financial measures to investors.
The Company does not consider these non-GAAP measures in isolation or as
an alternative to financial measures determined in accordance with
GAAP. The principal limitation of these non-GAAP financial measures is
that they exclude significant items that are required by GAAP to be
recorded in the Company's financial statements. In addition, they are
subject to inherent limitations as they reflect the exercise of
judgments by management. The Company urges investors to review the
reconciliation of its non-GAAP financial measures to the comparable GAAP
financial measures provided in the tables at the end of this press
release, and not to rely on any single financial measure to evaluate the
Company's business.
With respect to our expectations under "Business Outlook" above, the
Company has not reconciled non-GAAP gross margin to gross margin or
adjusted EBITDA to net income (loss) in this press release because we do
not provide guidance for amortization expense on intangible assets,
depreciation expense, stock-based compensation expense,
litigation-related expense, income tax expense, restructuring-related
expense, interest expense, and acquisition-related expense as we are
unable to quantify certain of these amounts that would be required to be
included in the GAAP measure without unreasonable efforts. In addition,
the Company believes such reconciliations would imply a degree of
precision that would be confusing or misleading to investors.
Cautionary Language Concerning Forward-Looking Statements
Certain matters discussed in this press release, including under
"Business Outlook," have "forward-looking statements" intended to
qualify for the safe harbor from liability established by the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements may generally be identified as such because the context of
such statements will include words such as "anticipate," "believe,"
"could," "estimate," "expect," "intend," "may," "plan," "potential,"
"predict," "project," "should," "will," "would" or words of similar
import. Similarly, statements that describe the Company's future plans,
objectives or goals are also forward-looking statements. Such
forward-looking statements are subject to risks, uncertainties and other
important factors that could cause actual results and the timing of
certain events to differ materially from future results expressed or
implied by such forward-looking statements. Factors that could cause or
contribute to such differences include, but are not limited to, our
ability to consummate the Webroot acquisition, integrate the Webroot
acquisition and other acquisitions into our operations and achieve the
expected operational and financial benefits of such acquisitions and the
timing of such benefits, our ability to profitably attract new customers
and retain existing customers, our dependence on the market for cloud
backup services, our ability to manage growth, changes in economic or
regulatory conditions or other trends affecting the Internet and the
information technology industry, and those discussed in the section
titled "Risk Factors" in our Annual Report on Form 10-K for the fiscal
year ended December 31, 2017 filed with the Securities and Exchange
Commission (the "SEC"), which is available on www.sec.gov,
and elsewhere in any subsequent periodic or current reports filed by us
with the SEC. Except as required by applicable law, we do not undertake
any obligation to update our forward-looking statements to reflect
future events, new information or circumstances.
About Carbonite
Carbonite provides a robust Data Protection Platform for businesses,
including backup, disaster recovery, high availability and workload
migration technology. The Carbonite Data Protection Platform supports
global businesses with secure cloud infrastructure. To learn more visit www.Carbonite.com.
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Carbonite, Inc.
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Consolidated Statement of Operations (unaudited)
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(In thousands, except share and per share amounts)
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Three Months Ended December 31,
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Twelve Months Ended December 31,
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2018
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2017
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2018
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2017
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Revenue:
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Services
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$
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69,406
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$
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53,272
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$
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263,084
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$
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207,403
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Product
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7,560
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8,420
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33,324
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32,059
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Total revenue
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76,966
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61,692
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296,408
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239,462
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Cost of revenue:
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Services
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17,242
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14,036
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68,024
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59,212
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Product
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382
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549
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1,730
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2,676
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Amortization of intangible assets
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4,562
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2,226
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15,629
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8,179
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Total cost of revenue
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22,186
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16,811
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85,383
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70,067
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Gross profit
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54,780
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44,881
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211,025
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169,395
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Operating expenses:
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Research and development
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14,315
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12,125
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57,467
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46,160
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General and administrative
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11,468
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9,463
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50,547
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42,862
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Sales and marketing
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22,507
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21,134
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85,637
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89,299
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Amortization of intangible assets
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3,922
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557
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12,437
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2,092
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Restructuring charges
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10
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1,047
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1,270
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1,047
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Total operating expenses
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52,222
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44,326
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207,358
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181,460
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Income (loss) from operations
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2,558
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555
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3,667
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(12,065
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)
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Interest expense
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(2,662
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)
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(2,436
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)
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(11,556
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(7,447
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)
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Interest income
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1,074
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|
217
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1,877
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581
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Other income (expense), net
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179
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123
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|
227
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1,252
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Income (loss) before income taxes
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1,149
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(1,541
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)
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(5,785
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)
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(17,679
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)
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Provision (benefit) for income taxes
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430
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73
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(13,347
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)
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(13,677
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)
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Net income (loss)
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$
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719
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$
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(1,614
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)
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$
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7,562
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$
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(4,002
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)
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Net income (loss) per share:
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Basic
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$
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0.02
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$
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(0.06
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)
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$
|
0.24
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$
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(0.14
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)
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Diluted
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$
|
0.02
|
|
|
$
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(0.06
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)
|
|
|
$
|
0.22
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|
$
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(0.14
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)
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Weighted-average shares outstanding:
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Basic
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34,213,859
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27,971,459
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31,036,237
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27,779,098
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Diluted
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36,374,151
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27,971,459
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|
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33,672,686
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27,779,098
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Carbonite, Inc.
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Consolidated Balance Sheets (unaudited)
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(In thousands)
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December 31, 2018
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December 31, 2017
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Assets
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Current assets
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Cash and cash equivalents
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$
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198,087
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$
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128,231
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Trade accounts receivable, net
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31,569
|
|
|
|
22,219
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Prepaid expenses and other current assets
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|
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|
10,409
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|
|
|
6,823
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Total current assets
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240,065
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|
|
|
157,273
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Property and equipment, net
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|
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34,101
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|
|
|
28,790
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Other assets
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|
|
|
13,876
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|
|
|
804
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Acquired intangible assets, net
|
|
|
|
117,963
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|
|
|
44,994
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Goodwill
|
|
|
|
155,086
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|
|
|
80,958
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Total assets
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|
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$
|
561,091
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|
|
|
$
|
312,819
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Liabilities and Stockholders' Equity
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|
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Current liabilities
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|
|
|
|
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Accounts payable
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|
|
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$
|
2,114
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|
|
|
$
|
10,842
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Accrued compensation
|
|
|
|
11,620
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|
|
|
9,892
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Accrued expenses and other current liabilities
|
|
|
|
15,844
|
|
|
|
11,783
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Current portion of deferred revenue
|
|
|
|
121,553
|
|
|
|
100,241
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Total current liabilities
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|
|
|
151,131
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|
|
|
132,758
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Long-term debt
|
|
|
|
118,305
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|
|
|
111,819
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Deferred revenue, net of current portion
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|
|
|
29,151
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|
|
|
24,273
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Other long-term liabilities
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|
|
|
5,294
|
|
|
|
5,704
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Total liabilities
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|
|
|
303,881
|
|
|
|
274,554
|
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Stockholders' equity
|
|
|
|
|
|
|
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Common stock
|
|
|
|
366
|
|
|
|
301
|
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Additional paid-in capital
|
|
|
|
451,618
|
|
|
|
233,343
|
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Treasury stock, at cost
|
|
|
|
(48,522
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)
|
|
|
(26,616
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)
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Accumulated deficit
|
|
|
|
(147,902
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)
|
|
|
(169,344
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)
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Accumulated other comprehensive income
|
|
|
|
1,650
|
|
|
|
581
|
|
Total stockholders' equity
|
|
|
|
257,210
|
|
|
|
38,265
|
|
Total liabilities and stockholders' equity
|
|
|
|
$
|
561,091
|
|
|
|
$
|
312,819
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carbonite, Inc.
|
Consolidated Statement of Cash Flows (unaudited)
|
(In thousands)
|
|
|
|
|
|
Twelve Months Ended December 31,
|
|
|
|
|
2018
|
|
|
2017
|
Operating activities
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
7,562
|
|
|
|
$
|
(4,002
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
41,786
|
|
|
|
21,731
|
|
Amortization of deferred costs
|
|
|
|
2,166
|
|
|
|
-
|
|
Gain on disposal of equipment
|
|
|
|
(191
|
)
|
|
|
(907
|
)
|
Intangible asset impairment charges
|
|
|
|
-
|
|
|
|
352
|
|
Impairment of capitalized software
|
|
|
|
653
|
|
|
|
1,048
|
|
Stock-based compensation expense
|
|
|
|
17,607
|
|
|
|
12,742
|
|
Benefit for deferred income taxes
|
|
|
|
(16,625
|
)
|
|
|
(15,392
|
)
|
Non-cash interest expense related to amortization of debt discount
|
|
|
|
6,340
|
|
|
|
4,434
|
|
Other non-cash items, net
|
|
|
|
(139
|
)
|
|
|
(533
|
)
|
Changes in assets and liabilities, net of acquisition:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
(5,996
|
)
|
|
|
1,786
|
|
Prepaid expenses and other current assets
|
|
|
|
(3,718
|
)
|
|
|
254
|
|
Other assets
|
|
|
|
(5,241
|
)
|
|
|
(580
|
)
|
Accounts payable
|
|
|
|
(7,359
|
)
|
|
|
5,035
|
|
Accrued expenses and other current liabilities
|
|
|
|
5,636
|
|
|
|
(995
|
)
|
Other long-term liabilities
|
|
|
|
(236
|
)
|
|
|
53
|
|
Deferred revenue
|
|
|
|
11,345
|
|
|
|
6,169
|
|
Net cash provided by operating activities
|
|
|
|
53,590
|
|
|
|
31,195
|
|
Investing activities
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
|
(13,132
|
)
|
|
|
(17,351
|
)
|
Proceeds from sale of property and equipment and businesses
|
|
|
|
860
|
|
|
|
1,250
|
|
Proceeds from maturities of derivatives
|
|
|
|
4,017
|
|
|
|
534
|
|
Purchases of derivatives
|
|
|
|
(1,428
|
)
|
|
|
(5,040
|
)
|
Payment for intangibles
|
|
|
|
(5,750
|
)
|
|
|
(1,250
|
)
|
Payment for acquisition, net of cash acquired
|
|
|
|
(144,597
|
)
|
|
|
(69,798
|
)
|
Net cash used in investing activities
|
|
|
|
(160,030
|
)
|
|
|
(91,655
|
)
|
Financing activities
|
|
|
|
|
|
|
|
Proceeds from exercise of stock options
|
|
|
|
1,260
|
|
|
|
4,987
|
|
Proceeds from issuance of common stock for secondary offering
|
|
|
|
199,279
|
|
|
|
-
|
|
Proceeds from issuance of treasury stock under employee stock
purchase plan
|
|
|
|
2,586
|
|
|
|
1,052
|
|
Payments of withholding taxes in connection with restricted stock
unit vesting
|
|
|
|
(2,862
|
)
|
|
|
(2,050
|
)
|
Proceeds from long-term borrowings, net of debt issuance costs
|
|
|
|
88,068
|
|
|
|
177,797
|
|
Payments on long-term borrowings
|
|
|
|
(90,000
|
)
|
|
|
(39,200
|
)
|
Repurchase of common stock
|
|
|
|
(21,501
|
)
|
|
|
(14,964
|
)
|
Net cash provided by financing activities
|
|
|
|
176,830
|
|
|
|
127,622
|
|
Effect of currency exchange rate changes on cash
|
|
|
|
(534
|
)
|
|
|
1,782
|
|
Net increase in cash, cash equivalents and restricted cash
|
|
|
|
69,856
|
|
|
|
68,944
|
|
Cash, cash equivalents and restricted cash, beginning of period
|
|
|
|
128,231
|
|
|
|
59,287
|
|
Cash, cash equivalents and restricted cash, end of period
|
|
|
|
$
|
198,087
|
|
|
|
$
|
128,231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carbonite, Inc.
|
Reconciliation of GAAP to Non-GAAP Measures (unaudited)
|
(In thousands, except share and per share amounts)
|
|
Reconciliation of GAAP Revenue to Non-GAAP
Revenue
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Twelve Months Ended December 31,
|
|
|
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
GAAP revenue
|
|
|
|
$
|
76,966
|
|
|
$
|
61,692
|
|
|
|
$
|
296,408
|
|
|
$
|
239,462
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Fair value adjustment of acquired deferred revenue
|
|
|
|
1,066
|
|
|
1,130
|
|
|
|
5,491
|
|
|
6,628
|
Non-GAAP revenue
|
|
|
|
$
|
78,032
|
|
|
$
|
62,822
|
|
|
|
$
|
301,899
|
|
|
$
|
246,090
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Gross Margin to
Non-GAAP Gross Margin
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Twelve Months Ended December 31,
|
|
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
Gross profit
|
|
|
$
|
54,780
|
|
|
$
|
44,881
|
|
|
|
$
|
211,025
|
|
|
$
|
169,395
|
|
Gross margin
|
|
|
71.2
|
%
|
|
72.8
|
%
|
|
|
71.2
|
%
|
|
70.7
|
%
|
Add:
|
|
|
|
|
|
|
|
|
|
|
Fair value adjustment of acquired deferred revenue
|
|
|
1,066
|
|
|
1,130
|
|
|
|
5,491
|
|
|
6,628
|
|
Amortization of intangibles
|
|
|
4,562
|
|
|
2,226
|
|
|
|
15,629
|
|
|
8,179
|
|
Stock-based compensation expense
|
|
|
391
|
|
|
274
|
|
|
|
1,545
|
|
|
1,061
|
|
Acquisition-related expense
|
|
|
12
|
|
|
92
|
|
|
|
73
|
|
|
401
|
|
Intangible asset impairment charges
|
|
|
-
|
|
|
127
|
|
|
|
-
|
|
|
127
|
|
Non-GAAP gross profit
|
|
|
$
|
60,811
|
|
|
$
|
48,730
|
|
|
|
$
|
233,763
|
|
|
$
|
185,791
|
|
Non-GAAP gross margin
|
|
|
77.9
|
%
|
|
77.6
|
%
|
|
|
77.4
|
%
|
|
75.5
|
%
|
|
Reconciliation of GAAP Net Income (Loss) and
Net Income (Loss) per Share to Non-GAAP Net Income and Net Income
per Share
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Twelve Months Ended, December 31
|
|
|
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
GAAP net income (loss)
|
|
|
|
$
|
719
|
|
|
$
|
(1,614
|
)
|
|
|
$
|
7,562
|
|
|
$
|
(4,002
|
)
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Fair value adjustment of acquired deferred revenue
|
|
|
|
1,066
|
|
|
1,130
|
|
|
|
5,491
|
|
|
6,628
|
|
Amortization of intangibles
|
|
|
|
8,484
|
|
|
2,783
|
|
|
|
28,066
|
|
|
10,271
|
|
Stock-based compensation expense
|
|
|
|
4,146
|
|
|
3,523
|
|
|
|
17,607
|
|
|
12,742
|
|
Litigation-related expense
|
|
|
|
7
|
|
|
181
|
|
|
|
92
|
|
|
374
|
|
Restructuring-related expense
|
|
|
|
10
|
|
|
1,047
|
|
|
|
1,270
|
|
|
1,047
|
|
Acquisition-related expense
|
|
|
|
698
|
|
|
430
|
|
|
|
6,894
|
|
|
6,794
|
|
Intangible asset impairment charges
|
|
|
|
-
|
|
|
352
|
|
|
|
-
|
|
|
352
|
|
Non-cash convertible debt interest expense
|
|
|
|
1,628
|
|
|
1,491
|
|
|
|
6,340
|
|
|
4,434
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Income tax effect of non-GAAP adjustments
|
|
|
|
514
|
|
|
566
|
|
|
|
17,458
|
|
|
15,807
|
|
Non-GAAP net income
|
|
|
|
$
|
16,244
|
|
|
$
|
8,757
|
|
|
|
$
|
55,864
|
|
|
$
|
22,833
|
|
GAAP net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.02
|
|
|
$
|
(0.06
|
)
|
|
|
$
|
0.24
|
|
|
$
|
(0.14
|
)
|
Diluted
|
|
|
|
$
|
0.02
|
|
|
$
|
(0.06
|
)
|
|
|
$
|
0.22
|
|
|
$
|
(0.14
|
)
|
Non-GAAP net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.47
|
|
|
$
|
0.31
|
|
|
|
$
|
1.80
|
|
|
$
|
0.82
|
|
Diluted
|
|
|
|
$
|
0.45
|
|
|
$
|
0.30
|
|
|
|
$
|
1.66
|
|
|
$
|
0.79
|
|
GAAP weighted-average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
34,213,859
|
|
|
27,971,459
|
|
|
|
31,036,237
|
|
|
27,779,098
|
|
Diluted
|
|
|
|
36,374,151
|
|
|
27,971,459
|
|
|
|
33,672,686
|
|
|
27,779,098
|
|
Non-GAAP weighted-average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
34,213,859
|
|
|
27,971,459
|
|
|
|
31,036,237
|
|
|
27,779,098
|
|
Diluted
|
|
|
|
36,374,151
|
|
|
29,322,013
|
|
|
|
33,672,686
|
|
|
29,079,105
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Operating Expense to
Non-GAAP Operating Expense
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Twelve Months Ended December 31,
|
|
|
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
Research and development
|
|
|
|
$
|
14,315
|
|
|
$
|
12,125
|
|
|
|
$
|
57,467
|
|
|
$
|
46,160
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense
|
|
|
|
536
|
|
|
665
|
|
|
|
3,292
|
|
|
1,969
|
Acquisition-related expense
|
|
|
|
9
|
|
|
77
|
|
|
|
49
|
|
|
1,249
|
Non-GAAP research and development
|
|
|
|
$
|
13,770
|
|
|
$
|
11,383
|
|
|
|
$
|
54,126
|
|
|
$
|
42,942
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative
|
|
|
|
$
|
11,468
|
|
|
$
|
9,463
|
|
|
|
$
|
50,547
|
|
|
$
|
42,862
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense
|
|
|
|
2,423
|
|
|
2,027
|
|
|
|
9,697
|
|
|
7,827
|
Litigation-related expense
|
|
|
|
7
|
|
|
181
|
|
|
|
92
|
|
|
374
|
Acquisition-related expense
|
|
|
|
666
|
|
|
145
|
|
|
|
6,685
|
|
|
4,448
|
Non-GAAP general and administrative
|
|
|
|
$
|
8,372
|
|
|
$
|
7,110
|
|
|
|
$
|
34,073
|
|
|
$
|
30,213
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
|
|
$
|
22,507
|
|
|
$
|
21,134
|
|
|
|
$
|
85,637
|
|
|
$
|
89,299
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense
|
|
|
|
796
|
|
|
557
|
|
|
|
3,073
|
|
|
1,885
|
Acquisition-related expense
|
|
|
|
11
|
|
|
116
|
|
|
|
87
|
|
|
696
|
Intangible asset impairment charges
|
|
|
|
-
|
|
|
225
|
|
|
|
-
|
|
|
225
|
Non-GAAP sales and marketing
|
|
|
|
$
|
21,700
|
|
|
$
|
20,236
|
|
|
|
$
|
82,477
|
|
|
$
|
86,493
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
|
|
$
|
3,922
|
|
|
$
|
557
|
|
|
|
$
|
12,437
|
|
|
$
|
2,092
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
|
|
3,922
|
|
|
557
|
|
|
|
12,437
|
|
|
2,092
|
Non-GAAP amortization of intangible assets
|
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charges
|
|
|
|
$
|
10
|
|
|
$
|
1,047
|
|
|
|
$
|
1,270
|
|
|
$
|
1,047
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring-related expense
|
|
|
|
10
|
|
|
1,047
|
|
|
|
1,270
|
|
|
1,047
|
Non-GAAP restructuring charges
|
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Revenue to Bookings
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Twelve Months Ended December 31,
|
|
|
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
GAAP revenue
|
|
|
|
$
|
76,966
|
|
|
$
|
61,692
|
|
|
|
$
|
296,408
|
|
|
$
|
239,462
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Change in deferred revenue
|
|
|
|
1,390
|
|
|
(1,191
|
)
|
|
|
26,190
|
|
|
16,923
|
Deferred revenue divested
|
|
|
|
-
|
|
|
-
|
|
|
|
288
|
|
|
373
|
Impact of Topic 606 adoption
|
|
|
|
-
|
|
|
-
|
|
|
|
3,998
|
|
|
-
|
Impact of foreign exchange
|
|
|
|
248
|
|
|
-
|
|
|
|
272
|
|
|
-
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Impact of foreign exchange
|
|
|
|
-
|
|
|
324
|
|
|
|
-
|
|
|
1,474
|
Beginning deferred revenue from acquisitions
|
|
|
|
-
|
|
|
-
|
|
|
|
19,740
|
|
|
9,420
|
Change in unbilled revenue
|
|
|
|
(267
|
)
|
|
-
|
|
|
|
376
|
|
|
-
|
Change in deferred revenue and adjustments
|
|
|
|
1,905
|
|
|
(1,515
|
)
|
|
|
10,632
|
|
|
6,402
|
Bookings
|
|
|
|
$
|
78,871
|
|
|
$
|
60,177
|
|
|
|
$
|
307,040
|
|
|
$
|
245,864
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Adjusted Free Cash Flow
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Twelve Months Ended December 31,
|
|
|
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
Net cash provided by operating activities
|
|
|
|
$
|
19,776
|
|
|
$
|
13,864
|
|
|
|
$
|
53,590
|
|
|
$
|
31,195
|
Subtract:
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
|
3,205
|
|
|
5,407
|
|
|
|
13,132
|
|
|
17,351
|
Free cash flow
|
|
|
|
16,571
|
|
|
8,457
|
|
|
|
40,458
|
|
|
13,844
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related payments
|
|
|
|
219
|
|
|
864
|
|
|
|
7,438
|
|
|
5,707
|
Restructuring-related payments
|
|
|
|
341
|
|
|
359
|
|
|
|
1,927
|
|
|
359
|
Litigation-related payments
|
|
|
|
7
|
|
|
51
|
|
|
|
282
|
|
|
188
|
Adjusted free cash flow
|
|
|
|
$
|
17,138
|
|
|
$
|
9,731
|
|
|
|
$
|
50,105
|
|
|
$
|
20,098
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of EBITDA and Adjusted EBITDA
to Net Income (Loss)
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Twelve Months Ended December 31,
|
|
|
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
Net income (loss)
|
|
|
|
$
|
719
|
|
|
$
|
(1,614
|
)
|
|
|
$
|
7,562
|
|
|
$
|
(4,002
|
)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
|
1,588
|
|
|
2,219
|
|
|
|
9,679
|
|
|
6,866
|
|
Income tax provision (benefit)
|
|
|
|
430
|
|
|
73
|
|
|
|
(13,347
|
)
|
|
(13,677
|
)
|
Depreciation and amortization
|
|
|
|
12,164
|
|
|
5,692
|
|
|
|
41,786
|
|
|
21,731
|
|
EBITDA
|
|
|
|
14,901
|
|
|
6,370
|
|
|
|
45,680
|
|
|
10,918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
Fair value adjustment of acquired deferred revenue
|
|
|
|
1,066
|
|
|
1,130
|
|
|
|
5,491
|
|
|
6,628
|
|
Stock-based compensation expense
|
|
|
|
4,146
|
|
|
3,523
|
|
|
|
17,607
|
|
|
12,742
|
|
Litigation-related expense
|
|
|
|
7
|
|
|
181
|
|
|
|
92
|
|
|
374
|
|
Restructuring-related expense
|
|
|
|
10
|
|
|
1,047
|
|
|
|
1,270
|
|
|
1,047
|
|
Intangible asset impairment charges
|
|
|
|
-
|
|
|
352
|
|
|
|
-
|
|
|
352
|
|
Acquisition-related expense
|
|
|
|
698
|
|
|
430
|
|
|
|
6,894
|
|
|
6,794
|
|
Adjusted EBITDA
|
|
|
|
$
|
20,828
|
|
|
$
|
13,033
|
|
|
|
$
|
77,034
|
|
|
$
|
38,855
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20190207005866/en/
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