[February 12, 2019] |
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Medidata Reports Fourth Quarter 2018 Results
Medidata
(NASDAQ:MDSO) today announced its financial results for the fourth
quarter of 2018.
"In 2018, we expanded our market leadership in life sciences, and proved
that our unique data and AI capabilities can reinvent the way treatments
are developed and commercialized,'' said Tarek Sherif, chairman and
chief executive officer, Medidata. "Our strong fourth quarter results
capped a year of solid execution. Greater platform adoption, high
customer satisfaction and our unique company culture, coupled with our
performance, give us great momentum heading into 2019.''
Fourth Quarter 2018 Results
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Total revenue was $167.2 million, an increase of 18% compared with
$141.6 million in the fourth quarter of 2017
-
Subscription revenue was $141.3 million, an increase of 18% compared
with the fourth quarter of 2017. Professional services revenue was
$25.9 million, an increase of 18% compared with the fourth quarter of
2017
-
GAAP operating income was $11.0 million and non-GAAP operating income1
was $36.6 million, representing a GAAP and non-GAAP operating margin
of 6.6% and 21.9%, respectively
-
GAAP net income was $14.3 million, or $0.23 per diluted share,
compared with $17.0 million, or $0.28 per diluted share, in the fourth
quarter of 2017. Non-GAAP net income1 was $27.7 million, or
$0.45 per diluted share, compared with $27.8 million, or $0.46 per
diluted share, in the fourth quarter of 2017. See the non-GAAP
reconciliation included in this release for full details of the
non-GAAP adjustments
Full-Year 2018 Results
-
Total revenue was $635.7 million, an increase of 17% compared with
$544.2 million in 2017
-
Subscription revenue was $535.7 million, an increase of 17% from the
prior year. Professional services revenue was $100.0 million, an
increase of 16% compared with 2017
-
GAAP operating income was $51.3 million and non-GAAP operating income1
was $148.8 million, representing a GAAP and non-GAAP operating margin
of 8.1% and 23.4%, respectively
-
GAAP net income was $51.9 million, or $0.85 per diluted share,
compared with $47.6 million, or $0.80 per diluted share, in 2017.
Non-GAAP net income1 was $104.3 million, or $1.71 per
diluted share, compared with $84.9 million, or $1.42 per diluted
share, in 2017. See the non-GAAP reconciliation included in this
release for full details of the non-GAAP adjustments
-
Total cash and marketable securities were $240.5 million at the end of
2018, compared with $663.3 million on December 31, 2017, driven by the
acquisition of SHYFT and cash settlement of convertible notes
Additional Highlights:
-
Adjusted 2019 subscription backlog2 as of December 31, 2018
was $560 million, an increase of 17% compared with $480 million a year
ago. Adjusted subscription backlog, together with professional
services revenue guidance, provides 91% coverage of total revenue
based on the midpoint of full-year 2019 total revenue guidance range
-
Entered a strategic alliance with Cognizant in which Cognizant will
develop and deliver a comprehensive set of managed services and
solutions utilizing Medidata's software application offerings. The
agreement exemplifies the power of Medidata's technology combined with
the expertise of the most advanced partner ecosystem in life science
-
Presented with representatives of the FDA and Johns Hopkins at the
Friends of Cancer Research annual meeting, demonstrating how
Medidata's synthetic control arm can use historical data to replicate
outcomes of a randomized control arm
-
As presented at the annual American Society of Hematology meeting,
Medidata's Rave Omics - a machine learning capability - discovered
previously unknown patient subgroups that had a three times higher
response rate to a particular therapy
-
Revenue retention rate4 was nearly 100% for the full year
"We closed 2018 on a strong note, highlighted by Q4 subscription revenue
growth of 18% and strong bookings as our total backlog grew to nearly
$1.2 billion," said Rouven Bergmann, chief financial officer, Medidata.
"Turning our focus to the future, it is clear that we are uniquely
positioned to capitalize on the opportunity ahead of us, and we remain
focused on building momentum across our portfolio."
Financial Outlook
For 2019, the Company now expects:
-
Total revenue between $734 and $746 million, representing 16% growth
at the midpoint
-
Subscription revenue between $619 and $631 million, representing 17%
growth at the midpoint
-
Professional services revenue of approximately $115 million
-
GAAP operating income between $49 and $57 million. Non-GAAP operating
income5, which excludes the impact of depreciation,
amortization of intangible assets, and stock-based compensation
expense, between $175 and $183 million
-
GAAP net income between $39 and $46 million. Non-GAAP net income5,
which excludes the impact of stock-based compensation, amortization,
non-cash interest expense, cash compensation from acquisition-related
agreements, and any contingent consideration fair value adjustments,
tax-effected at a 25% rate, between $107 and $114 million
-
While changes in the stock price could change the fully diluted share
count, Medidata is assuming 62.5 million fully diluted shares
The operating and net income measures above reflect Medidata's non-GAAP
financial guidance and the most directly comparable GAAP equivalents to
its guidance.
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Conference call details:
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Time:
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Today, February 12, 8 a.m. ET
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Conference ID:
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9289627
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Live dial-in:
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1-877-303-2528, domestic
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1-847-829-0023, international
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Webcast:
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investor.mdsol.com
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Replay:
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1-800-585-8367, domestic
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1-404-537-3406, international
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About Medidata
Medidata is leading the digital transformation of life sciences, with
the world's most used platform for clinical development, commercial, and
real-world data. Powered by artificial intelligence and delivered by the
#1 ranked industry experts, the Intelligent Platform for Life Sciences
helps pharmaceutical, biotech, medical device companies, and academic
researchers accelerate value, minimize risk and optimize outcomes.
Medidata serves more than 1,000 customers and partners worldwide and
empowers more than 100,000 certified users everyday to create hope for
millions of patients. Discover the future of life sciences: www.medidata.com
Cautionary Statement
Certain statements made in this press release are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 that involve significant risks and uncertainties
about Medidata Solutions, Inc. ("Medidata"), including, but not limited
to, statements about Medidata's forecast of financial performance,
products and services, business model, strategy and growth
opportunities, and competitive position. Such statements are subject to
risks and uncertainties that could cause actual performance or results
to differ materially from those expressed in these statements. Among
other things, the risks and uncertainties include those associated with
possible fluctuations in our financial and operating results;
integration activities, performance and financial impact of acquired
companies; our ability to retain and expand our customer base or
increase new business from those customers; and our ability to continue
to release, and gain customer acceptance of, new and improved versions
of our products. For additional disclosure regarding these and other
risks faced by Medidata, see disclosures contained in Medidata's public
filings with the Securities and Exchange Commission, including the "Risk
Factors" section of Medidata's Annual Report on Form 10-K for the year
ended December 31, 2017. You should consider these factors in evaluating
the forward-looking statements included in this press release and not
place undue reliance on such statements. The forward-looking statements
are made as of the date hereof, and Medidata undertakes no obligation to
update such statements as a result of new information, new developments
or otherwise, except as required by law.
(1) Non-GAAP Financial Information
Medidata provides non-GAAP operating income, net income, and net
income per share data as a supplement to its operating results. These
measures are not in accordance with, or an alternative to, generally
accepted accounting principles (GAAP), and may be different from
non-GAAP measures used by other companies. Management uses these
non-GAAP measures to evaluate its financial results, develop budgets,
manage expenditures, and as an important factor in determining variable
compensation. In addition, management believes, based on discussions
with investors, that these non-GAAP measures enhance investors' ability
to assess Medidata's historical and projected future financial
performance. While management believes these non-GAAP financial measures
provide useful supplemental information to investors, there are inherent
limitations associated with the use of non-GAAP financial measures.
Investors are encouraged to review the attached reconciliations of these
non-GAAP financial measures to the nearest comparable GAAP measures.
(2) Adjusted subscription backlog equals subscription backlog plus
outstanding intra-year renewals valued at an amount equal to the
contracts to be renewed.
(3) Total multi-year subscription backlog is unadjusted for renewals.
(4) Revenue retention rate is calculated as the percentage of prior year
revenue attributable to customers retained in the current year.
(5) A tabular reconciliation of forward-looking non-GAAP financial
measures to the most comparable forward-looking GAAP measures is
attached to this press release.
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MEDIDATA SOLUTIONS, INC.
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|
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
|
|
|
(Amounts in thousands, except per share data)
|
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|
|
|
|
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|
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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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|
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2018
|
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2017
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
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Subscription
|
|
$
|
141,321
|
|
|
$
|
119,756
|
|
|
(4)
|
|
$
|
535,672
|
|
|
$
|
457,824
|
|
|
(4)
|
Professional services
|
|
25,866
|
|
|
21,833
|
|
|
(4)
|
|
100,024
|
|
|
86,381
|
|
|
(4)
|
Total revenues
|
|
167,187
|
|
|
141,589
|
|
|
|
|
635,696
|
|
|
544,205
|
|
|
|
Cost of revenues (1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription
|
|
24,526
|
|
|
17,958
|
|
|
|
|
91,087
|
|
|
69,235
|
|
|
|
Professional services
|
|
18,603
|
|
|
14,747
|
|
|
|
|
68,072
|
|
|
57,558
|
|
|
|
Total cost of revenues
|
|
43,129
|
|
|
32,705
|
|
|
|
|
159,159
|
|
|
126,793
|
|
|
|
Gross profit
|
|
124,058
|
|
|
108,884
|
|
|
|
|
476,537
|
|
|
417,412
|
|
|
|
Operating costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development (1)
|
|
43,851
|
|
|
36,536
|
|
|
|
|
162,788
|
|
|
138,564
|
|
|
|
Sales and marketing (1)(2)
|
|
39,647
|
|
|
31,437
|
|
|
(4)
|
|
151,943
|
|
|
124,138
|
|
|
(4)
|
General and administrative (1)
|
|
29,525
|
|
|
23,552
|
|
|
|
|
110,489
|
|
|
94,324
|
|
|
|
Wire transaction recovery (3)
|
|
-
|
|
|
-
|
|
|
|
|
-
|
|
|
(4,770
|
)
|
|
|
Total operating costs and expenses
|
|
113,023
|
|
|
91,525
|
|
|
|
|
425,220
|
|
|
352,256
|
|
|
|
Operating income
|
|
11,035
|
|
|
17,359
|
|
|
|
|
51,317
|
|
|
65,156
|
|
|
|
Interest and other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(1,433
|
)
|
|
(4,648
|
)
|
|
|
|
(15,855
|
)
|
|
(17,765
|
)
|
|
|
Interest income
|
|
891
|
|
|
1,687
|
|
|
|
|
7,435
|
|
|
5,717
|
|
|
|
Other (expense) income, net
|
|
(3
|
)
|
|
(66
|
)
|
|
|
|
7,241
|
|
|
(73
|
)
|
|
|
Total interest and other expense, net
|
|
(545
|
)
|
|
(3,027
|
)
|
|
|
|
(1,179
|
)
|
|
(12,121
|
)
|
|
|
Income before income taxes
|
|
10,490
|
|
|
14,332
|
|
|
|
|
50,138
|
|
|
53,035
|
|
|
|
Provision for income taxes
|
|
(3,829
|
)
|
|
(2,680
|
)
|
|
(4)
|
|
(1,783
|
)
|
|
5,459
|
|
|
(4)
|
Net income
|
|
$
|
14,319
|
|
|
$
|
17,012
|
|
|
(4)
|
|
$
|
51,921
|
|
|
$
|
47,576
|
|
|
(4)
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
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Basic
|
|
$
|
0.24
|
|
|
$
|
0.30
|
|
|
(4)
|
|
$
|
0.89
|
|
|
$
|
0.84
|
|
|
(4)
|
Diluted
|
|
$
|
0.23
|
|
|
$
|
0.28
|
|
|
(4)
|
|
$
|
0.85
|
|
|
$
|
0.80
|
|
|
(4)
|
Weighted average common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
59,286
|
|
|
56,724
|
|
|
|
|
58,125
|
|
|
56,473
|
|
|
|
Diluted
|
|
61,571
|
|
|
60,245
|
|
|
|
|
61,162
|
|
|
59,765
|
|
|
|
(1) Stock-based compensation expense included in cost of revenues
and operating costs and expenses is as follows:
|
Cost of revenues
|
|
$
|
1,927
|
|
|
$
|
1,306
|
|
|
|
|
$
|
6,619
|
|
|
$
|
4,873
|
|
|
|
Research and development
|
|
2,832
|
|
|
3,580
|
|
|
|
|
11,993
|
|
|
13,314
|
|
|
|
Sales and marketing
|
|
3,275
|
|
|
1,958
|
|
|
|
|
12,568
|
|
|
6,833
|
|
|
|
General and administrative
|
|
7,634
|
|
|
5,947
|
|
|
|
|
29,958
|
|
|
22,793
|
|
|
|
Total stock-based compensation
|
|
$
|
15,668
|
|
|
$
|
12,791
|
|
|
|
|
$
|
61,138
|
|
|
$
|
47,813
|
|
|
|
(2) Amortization of intangible assets included in costs of revenues
and operating costs and expenses is as follows:
|
Cost of revenues
|
|
$
|
1,378
|
|
|
$
|
1,094
|
|
|
|
|
$
|
5,048
|
|
|
$
|
3,664
|
|
|
|
Sales and marketing
|
|
505
|
|
|
120
|
|
|
|
|
1,293
|
|
|
441
|
|
|
|
Total amortization of intangible assets
|
|
$
|
1,883
|
|
|
$
|
1,214
|
|
|
|
|
$
|
6,341
|
|
|
$
|
4,105
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Operating costs and expenses for the twelve months ended
December 31, 2017 include recognition of insurance recovery of
amounts associated with the previously recognized 2014 wire
transaction loss.
|
(4) Figures for the three and twelve months ended December 31, 2017
have been recast to reflect our January 1, 2018 full retrospective
adoption of Accounting Standards Codification ("ASC") 606.
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|
|
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MEDIDATA SOLUTIONS, INC.
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|
|
Reconciliation of GAAP Operating Income and GAAP Net Income to
Non-GAAP Operating Income and Non-GAAP Net Income (Unaudited)
|
|
|
(Amounts in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
Twelve Months Ended December 31,
|
|
|
|
|
2018
|
|
2017
|
|
|
|
2018
|
|
2017
|
|
|
Operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income
|
|
$
|
11,035
|
|
|
$
|
17,359
|
|
|
(8)
|
|
$
|
51,317
|
|
|
$
|
65,156
|
|
|
(8)
|
GAAP operating margins
|
|
6.6
|
%
|
|
12.3
|
%
|
|
(8)
|
|
8.1
|
%
|
|
12.0
|
%
|
|
(8)
|
Stock-based compensation
|
|
15,668
|
|
|
12,791
|
|
|
|
|
61,138
|
|
|
47,813
|
|
|
|
Depreciation and amortization
|
|
9,709
|
|
|
7,135
|
|
|
|
|
35,045
|
|
|
24,053
|
|
|
|
Contingent consideration adjustments (1)
|
|
(68
|
)
|
|
159
|
|
|
|
|
(331
|
)
|
|
319
|
|
|
|
Cash compensation from acquisition-related agreements (2)
|
|
252
|
|
|
-
|
|
|
|
|
1,624
|
|
|
-
|
|
|
|
Wire transaction recovery (3)
|
|
-
|
|
|
-
|
|
|
|
|
-
|
|
|
(4,770
|
)
|
|
|
Non-GAAP operating income
|
|
$
|
36,596
|
|
|
$
|
37,444
|
|
|
(8)
|
|
$
|
148,793
|
|
|
$
|
132,571
|
|
|
(8)
|
Non-GAAP operating margins
|
|
21.9
|
%
|
|
26.4
|
%
|
|
(8)
|
|
23.4
|
%
|
|
24.4
|
%
|
|
(8)
|
Net income:
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
|
|
$
|
14,319
|
|
|
$
|
17,012
|
|
|
(8)
|
|
$
|
51,921
|
|
|
$
|
47,576
|
|
|
(8)
|
Stock-based compensation
|
|
15,668
|
|
|
12,791
|
|
|
|
|
61,138
|
|
|
47,813
|
|
|
|
Amortization
|
|
1,883
|
|
|
1,214
|
|
|
|
|
6,341
|
|
|
4,105
|
|
|
|
Contingent consideration adjustments (1)
|
|
(68
|
)
|
|
159
|
|
|
|
|
(331
|
)
|
|
319
|
|
|
|
Cash compensation from acquisition-related agreements (2)
|
|
252
|
|
|
-
|
|
|
|
|
1,624
|
|
|
-
|
|
|
|
Wire transaction recovery (3)
|
|
-
|
|
|
-
|
|
|
|
|
-
|
|
|
(4,770
|
)
|
|
|
Interest income on wire transaction recovery (4)
|
|
-
|
|
|
-
|
|
|
|
|
(1,149
|
)
|
|
-
|
|
|
|
Non-cash interest expense (5)
|
|
108
|
|
|
3,762
|
|
|
|
|
9,840
|
|
|
14,706
|
|
|
|
Gain on step acquisition (6)
|
|
-
|
|
|
-
|
|
|
|
|
(7,648
|
)
|
|
-
|
|
|
|
Tax impact on add-back items (7)
|
|
(4,461
|
)
|
|
(7,170
|
)
|
|
|
|
(17,454
|
)
|
|
(24,869
|
)
|
|
|
Non-GAAP net income
|
|
$
|
27,701
|
|
|
$
|
27,768
|
|
|
(8)
|
|
$
|
104,282
|
|
|
$
|
84,880
|
|
|
(8)
|
GAAP basic earnings per share
|
|
$
|
0.24
|
|
|
$
|
0.30
|
|
|
(8)
|
|
$
|
0.89
|
|
|
$
|
0.84
|
|
|
(8)
|
GAAP diluted earnings per share
|
|
$
|
0.23
|
|
|
$
|
0.28
|
|
|
(8)
|
|
$
|
0.85
|
|
|
$
|
0.80
|
|
|
(8)
|
Non-GAAP basic earnings per share
|
|
$
|
0.47
|
|
|
$
|
0.49
|
|
|
(8)
|
|
$
|
1.79
|
|
|
$
|
1.50
|
|
|
(8)
|
Non-GAAP diluted earnings per share
|
|
$
|
0.45
|
|
|
$
|
0.46
|
|
|
(8)
|
|
$
|
1.71
|
|
|
$
|
1.42
|
|
|
(8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Change in fair value of acquisition-related contingent
consideration liability.
|
(2) Expense associated with acquisition-related cash compensation
agreements entered into with certain employees of SHYFT Analytics,
Inc. ("SHYFT").
|
(3) Operating costs and expenses for the twelve months ended
December 31, 2017 include recognition of insurance recovery of
amounts associated with the previously recognized 2014 wire
transaction loss. We exclude these amounts for the purposes of
calculating non-GAAP operating income and non-GAAP net income
because we believe they are not indicative of our continuing
operations or meaningful when comparing current to past results.
|
(4) Interest income for the twelve months ended December 31, 2018
includes interest on wire transaction recovery that was received
during the third quarter of 2018. We exclude this amount for the
purposes of calculating non-GAAP net income because we believe it is
not indicative of our continuing operations or meaningful when
comparing current to past results.
|
(5) Non-cash interest expense includes amortization of debt discount
and issuance costs on our 1.00% convertible senior notes issued in
2013, which were settled on August 1, 2018, and amortization of
issuance costs on our credit agreement entered into in 2017. We
exclude this incremental non-cash interest expense for purposes of
calculating non-GAAP net income. We believe that excluding these
expenses from our non-GAAP measures is useful to investors because
such incremental non-cash interest expense does not generate a cash
outflow, nor do the debt issuance costs represent a cash outflow
except in the period of issuance; therefore both are not indicative
of our continuing operations.
|
(6) Elimination of gain recognized upon step acquisition of SHYFT.
|
(7) Tax impact calculated using tax rates of 25% and 40% for the
periods ended December 31, 2018 and 2017, respectively.
|
(8) Figures for the three and twelve months ended December 31, 2017
have been recast to reflect our January 1, 2018 full retrospective
adoption of ASC 606.
|
The table above presents a reconciliation of GAAP to non-GAAP
operating income, net income, and net income per share applicable to
common stockholders for the three and twelve months ended December
31, 2018 and 2017. Non-GAAP operating income excludes the impact of
stock-based compensation, depreciation, amortization of intangible
assets associated with acquisitions, adjustments to the fair value
of contingent consideration, cash compensation from
acquisition-related agreements, and wire transaction recovery.
Non-GAAP net income excludes the tax-affected impact of stock-based
compensation, amortization of intangible assets associated with
acquisitions, adjustments to the fair value of contingent
consideration, cash compensation from acquisition-related
agreements, wire transaction recovery and interest thereon, non-cash
interest expense, and gain on step acquisition.
|
|
|
MEDIDATA SOLUTIONS, INC.
|
CONSOLIDATED BALANCE SHEETS (Unaudited)
|
(Amounts in thousands, except per share data)
|
|
|
|
December 31, 2018
|
|
December 31, 2017
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
105,440
|
|
|
$
|
237,325
|
|
Marketable securities
|
|
|
135,105
|
|
|
246,967
|
|
Accounts receivable, net of allowance for doubtful accounts of
$1,999 and $1,454, respectively
|
(1)
|
|
170,744
|
|
|
110,685
|
|
Prepaid commission expense
|
|
|
22,247
|
|
|
12,404
|
|
Prepaid expenses and other current assets
|
|
|
28,949
|
|
|
33,636
|
|
Total current assets
|
|
|
462,485
|
|
|
641,017
|
|
Restricted cash
|
|
|
7,205
|
|
|
5,518
|
|
Furniture, fixtures and equipment, net
|
|
|
98,983
|
|
|
88,091
|
|
Marketable securities, long-term
|
|
|
-
|
|
|
179,041
|
|
Goodwill
|
|
|
216,017
|
|
|
47,435
|
|
Intangible assets, net
|
|
|
29,546
|
|
|
17,587
|
|
Deferred income taxes
|
|
|
45,982
|
|
|
35,789
|
|
Other assets
|
|
|
52,994
|
|
|
46,755
|
|
Total assets
|
|
|
$
|
913,212
|
|
|
$
|
1,061,233
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
7,482
|
|
|
$
|
5,009
|
|
Accrued payroll and other compensation
|
|
|
51,270
|
|
|
32,537
|
|
Accrued expenses and other
|
|
|
37,487
|
|
|
36,041
|
|
Deferred revenue
|
|
|
74,463
|
|
|
77,375
|
|
1.00% convertible senior notes, net
|
|
|
-
|
|
|
278,094
|
|
Total current liabilities
|
|
|
170,702
|
|
|
429,056
|
|
Noncurrent liabilities:
|
|
|
|
|
|
Term loan, net
|
|
|
88,366
|
|
|
92,841
|
|
Deferred revenue, less current portion
|
|
|
3,843
|
|
|
5,256
|
|
Deferred tax liabilities
|
|
|
99
|
|
|
99
|
|
Other long-term liabilities
|
|
|
18,754
|
|
|
21,371
|
|
Total noncurrent liabilities
|
|
|
111,062
|
|
|
119,567
|
|
Total liabilities
|
|
|
281,764
|
|
|
548,623
|
|
Commitments and contingencies
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
Preferred stock, par value $0.01 per share; 5,000 shares authorized,
none issued and outstanding
|
|
|
-
|
|
|
-
|
|
Common stock, par value $0.01 per share; 200,000 shares authorized;
66,103 and 62,801 shares issued; 61,348 and 58,607 shares
outstanding, respectively
|
|
|
661
|
|
|
628
|
|
Additional paid-in capital
|
|
|
574,667
|
|
|
486,147
|
|
Treasury stock, 4,755 and 4,194 shares, respectively
|
|
|
(152,849
|
)
|
|
(132,705
|
)
|
Accumulated other comprehensive loss
|
|
|
(4,869
|
)
|
|
(3,377
|
)
|
Retained earnings
|
|
|
213,838
|
|
|
161,917
|
|
Total stockholders' equity
|
|
|
631,448
|
|
|
512,610
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
913,212
|
|
|
$
|
1,061,233
|
|
|
(1) Unbilled receivables of $38,601 and $12,488, respectively, are
included in accounts receivable as of December 31, 2018 and 2017.
|
|
|
|
|
MEDIDATA SOLUTIONS, INC.
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
|
|
|
(Amounts in thousands)
|
|
|
|
|
Twelve Months Ended December 31,
|
|
|
|
|
2018
|
|
2017
|
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
Net income
|
|
$
|
51,921
|
|
|
$
|
47,576
|
|
|
(1)
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
Amortization of intangible assets and depreciation
|
|
35,045
|
|
|
24,053
|
|
|
|
Stock-based compensation
|
|
61,138
|
|
|
47,813
|
|
|
|
Amortization of discounts or premiums on marketable securities
|
|
130
|
|
|
1,438
|
|
|
|
Realized loss on available-for-sale marketable securities
|
|
375
|
|
|
-
|
|
|
|
Deferred income taxes
|
|
(4,337
|
)
|
|
908
|
|
|
(1)
|
Amortization of debt issuance costs
|
|
1,179
|
|
|
1,291
|
|
|
|
Amortization of debt discount
|
|
8,661
|
|
|
13,415
|
|
|
|
Provision for doubtful accounts
|
|
1,587
|
|
|
1,089
|
|
|
|
Loss on fixed asset disposal
|
|
425
|
|
|
72
|
|
|
|
Gain recognized on step acquisition
|
|
(7,648
|
)
|
|
-
|
|
|
|
Changes in fair value of contingent consideration
|
|
(331
|
)
|
|
319
|
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable
|
|
(61,646
|
)
|
|
4,043
|
|
|
|
Prepaid commission expense
|
|
(23,070
|
)
|
|
(12,129
|
)
|
|
(1)
|
Prepaid expenses and other current assets
|
|
5,625
|
|
|
(15,464
|
)
|
|
(1)
|
Other assets
|
|
2,996
|
|
|
(1,270
|
)
|
|
|
Accounts payable
|
|
3,474
|
|
|
(3,014
|
)
|
|
|
Accrued payroll and other compensation
|
|
18,854
|
|
|
2,089
|
|
|
|
Accrued expenses and other
|
|
6,054
|
|
|
1,751
|
|
|
|
Deferred revenue
|
|
(7,334
|
)
|
|
6,556
|
|
|
(1)
|
Other long-term liabilities
|
|
(3,922
|
)
|
|
1,210
|
|
|
|
Net cash provided by operating activities
|
|
89,176
|
|
|
121,746
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
Purchase of furniture, fixtures and equipment
|
|
(40,083
|
)
|
|
(44,621
|
)
|
|
|
Purchase of available-for-sale securities
|
|
(69,214
|
)
|
|
(303,641
|
)
|
|
|
Proceeds from sale of available-for-sale securities
|
|
360,271
|
|
|
297,297
|
|
|
|
Acquisition of businesses, net of cash acquired
|
|
(178,897
|
)
|
|
(22,941
|
)
|
|
|
Purchase of cost method investments
|
|
-
|
|
|
(4,124
|
)
|
|
|
Net cash provided by (used in) investing activities
|
|
72,077
|
|
|
(78,030
|
)
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
Proceeds from exercise of stock options
|
|
14,463
|
|
|
10,207
|
|
|
|
Proceeds from employee stock purchase plan
|
|
12,506
|
|
|
9,378
|
|
|
|
Acquisition of treasury stock
|
|
(20,141
|
)
|
|
(18,499
|
)
|
|
|
Repayment of convertible notes
|
|
(287,500
|
)
|
|
-
|
|
|
|
Term loan principal payments
|
|
(5,000
|
)
|
|
-
|
|
|
|
Payment of acquisition-related earn-outs
|
|
(4,572
|
)
|
|
-
|
|
|
|
Borrowings under term loan facility
|
|
-
|
|
|
100,000
|
|
|
|
Payment of credit facility financing costs
|
|
(175
|
)
|
|
(1,997
|
)
|
|
|
Net cash (used in) provided by financing activities
|
|
(290,419
|
)
|
|
99,089
|
|
|
|
Effect of exchange rate changes on cash, cash equivalents and
restricted cash
|
|
(1,032
|
)
|
|
759
|
|
|
|
Net (decrease) increase in cash, cash equivalents and restricted cash
|
|
(130,198
|
)
|
|
143,564
|
|
|
|
Cash, cash equivalents and restricted cash - Beginning of period
|
|
242,843
|
|
|
99,279
|
|
|
|
Cash, cash equivalents and restricted cash - End of period
|
|
$
|
112,645
|
|
|
$
|
242,843
|
|
|
|
|
(1) Figures for the twelve months ended December 31, 2017 have been
recast to reflect our January 1, 2018 full retrospective adoption of
ASC 606.
|
|
|
MEDIDATA SOLUTIONS, INC.
|
Reconciliation of Forward-Looking GAAP Operating Income Guidance
and GAAP Net Income Guidance to
|
Non-GAAP Operating Income Guidance and Non-GAAP Net Income
Guidance (Unaudited)
|
(Amounts in millions)
|
|
|
|
|
|
Estimated Full-Year 2019
|
Total revenues
|
|
$734.0 - $746.0
|
|
|
|
GAAP operating income:
|
|
$49.0 - $57.0
|
Stock-based compensation (1)
|
|
80.0
|
Depreciation and amortization (1)
|
|
43.0
|
Cash compensation from acquisition-related agreements (1)
|
|
3.0
|
Non-GAAP operating income
|
|
$175.0 - $183.0
|
|
|
|
GAAP net income:
|
|
$39.0 - $46.0
|
Stock-based compensation (1)
|
|
80.0
|
Amortization (1)
|
|
7.5
|
Cash compensation from acquisition-related agreements (1)
|
|
3.0
|
Non-cash interest expense (1)
|
|
0.5
|
Tax impact on add-back items (2)
|
|
(23.0)
|
Non-GAAP net income
|
|
$107.0 - $114.0
|
|
|
|
Fully diluted share count
|
|
62.5
|
|
|
|
(1) Represents the estimated midpoint of our guidance range.
|
(2) Tax impact estimated using a 25% rate.
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20190212005284/en/
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