Financial Release
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BlackLine Announces Third Quarter Financial Results
Third Quarter 2017 Financial Highlights
- Total GAAP revenues of
$45.9 million for the third quarter of 2017, an increase of 42% compared to the third quarter of 2016. - GAAP net loss of
$13.1 million , or$0.25 per share, on 52.6 million weighted average shares outstanding. - Non-GAAP net loss of
$0.6 million , or$0.01 per share, on 52.6 million weighted average shares outstanding. - Operating cash flow of
$3.5 million for the third quarter of 2017 compared to$4.1 million for the third quarter of 2016. - Free cash flow of
($0.5) million for the third quarter of 2017 compared to$2.9 million for the third quarter of 2016.
Key Metrics and Recent Business Highlights
- Added 113 net new customers in the third quarter for a total of 2,091 customers at
September 30, 2017 . - Expanded the Company’s user base to a total of 186,461
BlackLine users atSeptember 30, 2017 . - Achieved a dollar-based net revenue retention rate of 113% at
September 30, 2017 . - Appointed seasoned finance and accounting leader
Tammy Coley as Chief Strategy Officer. - Added
Kevin Thompson , CEO ofSolarWinds , to BlackLine’s Board of Directors, expanding the Board to nine members. BlackLine named a ‘Best Place to Work in Los Angeles’ by theLos Angeles Business Journal for the fifth consecutive year.
Financial Outlook
Fourth Quarter 2017
- Total GAAP revenue is expected to be in the range of
$47.0 million to $48.0 million . - Non-GAAP net income is expected to be approximately breakeven.
Full Year 2017
- Total GAAP revenue is expected to be in the range of
$174.0 million to $175.0 million . - Non-GAAP net loss is expected to be approximately
$5.0 million , or$0.10 per share, on 52.2 million weighted average shares outstanding.
Guidance for non-GAAP net income / loss and net income / loss per share does not include the impact of the benefit from income taxes that we were able to recognize as a result of the deferred tax liabilities associated with the intangible assets established upon the acquisition in the third quarter of 2016 of
Quarterly Conference Call
About
Forward-looking Statements
This release and the conference call referenced above contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expect,” “plan,” anticipate,” “believe,” “estimate,” “predict,” “intend,” “potential,” “would,” “continue,” “ongoing” or the negative of these terms or other comparable terminology. Forward-looking statements in this release and quarterly conference call include, but are not limited to, statements regarding BlackLine’s future financial and operational performance, including, without limitation, GAAP and non-GAAP guidance, our expectations for our business in 2017 and our ability to execute on our long-term plans and key initiatives, expectations regarding gross margin, revenue mix, operating expenses and capital expenditures, the Company’s expectation that it will have positive cash flows in a specified time period, the impact of seasonality on the Company’s financial results, market opportunity, the demand for and benefits from the use of BlackLine’s current and future solutions, growth strategies including international expansion, customer growth, extension of distribution channels and product innovation, expansion of relationships with partners, customer service initiatives and expectations regarding deal size and increased focus on strategic products.
Any forward-looking statements contained in this press release or the quarterly conference call are based upon BlackLine’s historical performance and its current plans, estimates and expectations and are not a representation that such plans, estimates, or expectations will be achieved. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith beliefs and assumptions as of that time with respect to future events, and are subject to risks and uncertainties. If any of these risks or uncertainties materialize or if any assumptions prove incorrect, actual performance or results may differ materially from those expressed in or suggested by the forward looking statements. These risks and uncertainties include, but are not limited to risks related to the Company’s ability to attract new customers and expand sales to existing customers; the extent to which customers renew their subscription agreements or increase the number of users; the Company’s ability to manage growth and scale effectively, including additional headcount and entry into new geographies; the Company’s ability to provide successful enhancements, new features and modifications to its software solutions; the Company’s ability to develop new products and software solutions and the success of any new product and service introductions; the success of the Company’s strategic relationships with technology vendors and business process outsourcers, channel partners and alliance partners; any breaches of the Company’s security measures; a disruption in the Company’s hosting network infrastructure; costs and reputational harm that could result from defects in the Company’s solution; the loss of any key employees; continued strong demand for the Company’s software in
Use of Non-GAAP Financial Measures
To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles, or GAAP,
BlackLine’s management uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to the corresponding GAAP measures, in evaluating BlackLine’s ongoing operational performance and trends and in comparing its financial measures with other companies in the same industry, many of which present similar non-GAAP financial measures to help investors understand the operational performance of their businesses. However, it is important to note that the particular items
Non-GAAP Revenues. Non-GAAP revenues are defined as GAAP revenues adjusted for the impact of purchase accounting resulting from the Runbook Acquisition. The impact of purchase accounting reduced recorded GAAP revenues during the quarters ended
Non-GAAP Gross Profit and Non-GAAP Gross Margin. Non-GAAP gross profit is defined as non-GAAP revenues less GAAP cost of revenue adjusted for the impact of purchase accounting resulting from the Runbook Acquisition, the amortization of acquired developed technology resulting from the 2013 Acquisition and the Runbook Acquisition, and stock-based compensation. Non-GAAP gross margin is defined as non-GAAP gross profit divided by non-GAAP revenues.
Non-GAAP Operating Expenses. Non-GAAP operating expenses include (a) non-GAAP sales and marketing expense, (b) non-GAAP research and development expense and (c) non-GAAP general and administrative expense. Non-GAAP sales and marketing expense is defined as GAAP sales and marketing expense adjusted for the amortization of acquired intangibles resulting from the 2013 Acquisition and the Runbook Acquisition and stock-based compensation. Non-GAAP research and development expense is defined as GAAP research and development expense adjusted for stock-based compensation. Non-GAAP general and administrative expense is defined as GAAP general and administrative expense as adjusted for the amortization of acquired intangibles resulting from the 2013 Acquisition and Runbook Acquisition, stock-based compensation, the change in fair value of contingent consideration, acquisition costs related to the Runbook Acquisition, and costs incurred in connection with our secondary offering. BlackLine believes that presenting each of the non-GAAP operating expenses is useful to investors as it eliminates the impact of certain non-cash expenses and allows a direct comparison of operating expenses between periods.
Non-GAAP Loss from Operations. Non-GAAP loss from operations is defined as GAAP loss from operations adjusted for the impact of purchase accounting to revenues resulting from the Runbook Acquisition, the amortization of acquired intangible assets resulting from the 2013 Acquisition and the Runbook Acquisition, stock-based compensation, the change in fair value of contingent consideration, acquisition costs related to the Runbook Acquisition, and costs incurred in connection with our secondary offering. The Company believes that presenting non-GAAP loss from operations is useful to investors as it eliminates the impact of items that have been impacted by the 2013 Acquisition and the Runbook Acquisition, purchase accounting and other related costs in order to allow a direct comparison of loss from operations between all periods presented.
Non-GAAP Net Loss. Non-GAAP net loss is defined as GAAP net loss adjusted for the impact of the benefit from income taxes that we were able to recognize as a result of the deferred tax liabilities associated with the intangible assets established upon the 2013 Acquisition and the Runbook Acquisition, the impact of purchase accounting to revenues resulting from the Runbook Acquisition, amortization of acquired intangible assets resulting from the 2013 Acquisition and the Runbook Acquisition, stock-based compensation, accretion of debt discount pertaining to the former debt facility, accretion of warrant discount relating to warrants issued in connection with the former debt facility, the change in the fair value of contingent consideration, the change in fair value of the common stock warrant liability, acquisition costs related to the Runbook Acquisition, and costs incurred in connection with our secondary offering. The Company believes that presenting non-GAAP net loss is useful to investors as it eliminates the impact of items that have been impacted by the 2013 Acquisition and the Runbook Acquisition, purchase accounting and other related costs in order to allow a direct comparison of net loss between all periods presented.
Free Cash Flow. Free cash flow is defined as cash flows used in operating activities less cash flows used in investing activities related to purchase of property and equipment and capitalized software development. BlackLine believes that presenting free cash flow is useful to investors as it provides a measure of the Company’s liquidity used by management to evaluate the amount of cash generated by the Company’s business including the impact of purchases of property and equipment and cost of capitalized software development.
Use of Operating Metrics
BlackLine has provided in this release and the quarterly conference call held on November 2, 2017 certain operating metrics, including (i) number of customers, (ii) number of users and (iii) dollar-based net revenue retention rate, which BlackLine uses to evaluate its business, measure its performance, identify trends affecting its business, formulate financial projections and make strategic decisions. These operating metrics exclude the impact of Runbook licensed customers and users as these customers did not have an active subscription agreement with BlackLine as of September 30, 2017.
Dollar-based Net Revenue Retention Rate. Dollar-based net revenue retention rate is calculated as the implied monthly subscription and support revenue at the end of a period for the base set of customers from which the Company generated subscription revenue in the year prior to the calculation, divided by the implied monthly subscription and support revenue one year prior to the date of calculation for that same customer base. This calculation does not reflect implied monthly subscription and support revenue for new customers added during the one-year period but does include the effect of customers who terminated during the period. Implied monthly subscription and support revenue is defined as the total amount of minimum subscription and support revenue contractually committed to, under each of BlackLine’s customer agreements over the entire term of the agreement, divided by the number of months in the term of the agreement. BlackLine believes that dollar-based net revenue retention rate is an important metric to measure the long-term value of customer agreements and the Company’s ability to retain and grow its relationships with existing customers over time.
Number of Customers. A customer is defined as an entity with an active subscription agreement as of the measurement date. In situations where an organization has multiple subsidiaries or divisions, each entity that is invoiced as a separate entity is treated as a separate customer. However, where an existing customer requests its invoice be divided for the sole purpose of restructuring its internal billing arrangement without any incremental increase in revenue, such customer continues to be treated as a single customer. BlackLine believes that its ability to expand its customer base is an indicator of the Company’s market penetration and the growth of its business.
Number of Users. Since BlackLine’s customers generally pay fees based on the number of users of its platform within their organization, the Company believes the total number of users is an indicator of the growth of its business.
| BlackLine, Inc. | ||||||||
| Consolidated Balance Sheets | ||||||||
| (in thousands) | ||||||||
| (unaudited) | ||||||||
| September 30, 2017 |
December 31, 2016 |
|||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 24,645 | $ | 22,118 | ||||
| Marketable securities | 85,125 | 83,130 | ||||||
| Accounts receivable, net of allowance | 45,233 | 42,294 | ||||||
| Deferred sales commissions | 10,946 | 9,667 | ||||||
| Prepaid expenses and other current assets | 6,794 | 6,614 | ||||||
| Total current assets | 172,743 | 163,823 | ||||||
| Capitalized software development costs, net | 6,129 | 4,591 | ||||||
| Property and equipment, net | 12,126 | 11,318 | ||||||
| Intangible assets, net | 44,130 | 54,118 | ||||||
| Goodwill | 185,138 | 185,138 | ||||||
| Other assets | 1,857 | 1,449 | ||||||
| Total assets | $ | 422,123 | $ | 420,437 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Accounts payable | $ | 2,934 | $ | 7,165 | ||||
| Accrued expenses and other current liabilities | 18,354 | 18,931 | ||||||
| Deferred revenue | 94,158 | 80,360 | ||||||
| Short-term portion of contingent consideration | 2,008 | 2,008 | ||||||
| Total current liabilities | 117,454 | 108,464 | ||||||
| Common stock warrant liability | - | 11,380 | ||||||
| Contingent consideration | 3,597 | 3,230 | ||||||
| Deferred tax liabilities | 993 | 1,262 | ||||||
| Deferred revenue, noncurrent | 2,100 | 2,373 | ||||||
| Other long-term liabilities | 2,190 | 2,318 | ||||||
| Total liabilities | 126,334 | 129,027 | ||||||
| Stockholders' equity: | ||||||||
| Common stock | 528 | 513 | ||||||
| APIC | 414,915 | 378,272 | ||||||
| Accumulated other comprehensive income | (32 | ) | (41 | ) | ||||
| Accumulated deficit | (119,622 | ) | (87,334 | ) | ||||
| Total stockholders' equity | 295,789 | 291,410 | ||||||
| Total liabilities and stockholders' equity | $ | 422,123 | $ | 420,437 | ||||
| BlackLine, Inc. | ||||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Quarter Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Revenues | ||||||||||||||||
| Subscription and support | $ | 43,462 | $ | 30,853 | $ | 120,757 | $ | 83,830 | ||||||||
| Professional services | 2,409 | 1,343 | 6,041 | 3,953 | ||||||||||||
| Total revenues | 45,871 | 32,196 | 126,798 | 87,783 | ||||||||||||
| Cost of revenues | ||||||||||||||||
| Subscription and support | 8,707 | 6,440 | 24,729 | 18,515 | ||||||||||||
| Professional services | 2,191 | 1,101 | 5,776 | 3,029 | ||||||||||||
| Total cost of revenues | 10,898 | 7,541 | 30,505 | 21,544 | ||||||||||||
| Gross profit | 34,973 | 24,655 | 96,293 | 66,239 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Sales and marketing | 33,375 | 19,037 | 81,996 | 56,279 | ||||||||||||
| Research and development | 5,883 | 5,087 | 17,840 | 15,552 | ||||||||||||
| General and administrative | 8,920 | 7,698 | 25,809 | 19,633 | ||||||||||||
| Total operating expenses | 48,178 | 31,822 | 125,645 | 91,464 | ||||||||||||
| Loss from operations | (13,205 | ) | (7,167 | ) | (29,352 | ) | (25,225 | ) | ||||||||
| Other income (expense) | ||||||||||||||||
| Interest income | 281 | - | 749 | 4 | ||||||||||||
| Interest expense | (6 | ) | (1,294 | ) | (13 | ) | (3,138 | ) | ||||||||
| Change in fair value of the common stock warrant liability |
- | - | (3,490 | ) | 300 | |||||||||||
| Other income (expense), net | 275 | (1,294 | ) | (2,754 | ) | (2,834 | ) | |||||||||
| Loss before income taxes | (12,930 | ) | (8,461 | ) | (32,106 | ) | (28,059 | ) | ||||||||
| Provision for (benefit from) income taxes | 162 | (1,842 | ) | 110 | (4,564 | ) | ||||||||||
| Net loss | $ | (13,092 | ) | $ | (6,619 | ) | $ | (32,216 | ) | $ | (23,495 | ) | ||||
| Net loss per share, basic and diluted | $ | (0.25 | ) | $ | (0.16 | ) | $ | (0.62 | ) | $ | (0.58 | ) | ||||
| Weighted average common shares outstanding, basic and diluted | 52,592 | 40,824 | 51,910 | 40,746 | ||||||||||||
| BlackLine, Inc. | ||||||||||||||||
| Consolidated Statements of Cash Flows | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Quarter Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||
| Net loss | $ | (13,092 | ) | $ | (6,619 | ) | $ | (32,216 | ) | $ | (23,495 | ) | ||||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||||||
| Depreciation and amortization | 5,087 | 4,356 | 14,786 | 12,690 | ||||||||||||
| Accretion of debt discount and accrual of paid-in-kind interest | - | 871 | - | 2,083 | ||||||||||||
| Change in fair value of common stock warrant liability | - | - | 3,490 | (300 | ) | |||||||||||
| Change in fair value of contingent consideration | 178 | 135 | 367 | 278 | ||||||||||||
| Stock-based compensation | 9,115 | 1,360 | 12,951 | 4,534 | ||||||||||||
| (Accretion)/amortization of purchase discounts/premiums on marketable securities, net | (33 | ) | - | 100 | - | |||||||||||
| Deferred income taxes | (151 | ) | (1,920 | ) | (269 | ) | (4,820 | ) | ||||||||
| Provision for doubtful accounts receivable | 602 | - | 602 | - | ||||||||||||
| Changes in operating assets and liabilities, net of effects of the acquisition: | ||||||||||||||||
| Accounts receivable | (2,310 | ) | (8,525 | ) | (3,541 | ) | (9,933 | ) | ||||||||
| Deferred sales commissions | (1,101 | ) | (922 | ) | (1,279 | ) | (983 | ) | ||||||||
| Prepaid expenses and other current assets | 133 | 127 | (180 | ) | (936 | ) | ||||||||||
| Other assets | (340 | ) | (180 | ) | (408 | ) | (150 | ) | ||||||||
| Accounts payable | (1,698 | ) | 1,175 | (4,185 | ) | 3,250 | ||||||||||
| Accrued expenses and other current liabilities | 2,141 | 4,621 | 59 | 1,886 | ||||||||||||
| Deferred revenue | 4,990 | 9,784 | 13,525 | 17,535 | ||||||||||||
| Other long-term liabilities | (14 | ) | (124 | ) | (128 | ) | (590 | ) | ||||||||
| Net cash provided by operating activities | 3,507 | 4,139 | 3,674 | 1,049 | ||||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||
| Purchases of marketable securities | (26,248 | ) | - | (51,647 | ) | - | ||||||||||
| Proceeds from maturities of marketable securities | 24,941 | - | 49,561 | - | ||||||||||||
| Acquisition, net of cash acquired | - | (31,488 | ) | - | (31,488 | ) | ||||||||||
| Capitalized software development costs | (1,362 | ) | (854 | ) | (3,345 | ) | (2,326 | ) | ||||||||
| Purchases of property and equipment | (2,611 | ) | (406 | ) | (3,729 | ) | (1,308 | ) | ||||||||
| Net cash used in investing activities | (5,280 | ) | (32,748 | ) | (9,160 | ) | (35,122 | ) | ||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||
| Proceeds from term loan, net of issuance costs | - | 29,629 | - | 34,469 | ||||||||||||
| Principal payments on capital lease obligations | - | - | (549 | ) | (124 | ) | ||||||||||
| Proceeds from exercises of stock options | 2,911 | 1,894 | 8,672 | 2,196 | ||||||||||||
| Proceeds from issuance of common stock | - | 3,075 | - | 3,075 | ||||||||||||
| Payments of initial public offering costs | - | (50 | ) | (110 | ) | (1,162 | ) | |||||||||
| Net cash provided by financing activities | 2,911 | 34,548 | 8,013 | 38,454 | ||||||||||||
| Net increase in cash and cash equivalents | 1,138 | 5,939 | 2,527 | 4,381 | ||||||||||||
| Cash and cash equivalents, beginning of period | 23,507 | 13,647 | 22,118 | 15,205 | ||||||||||||
| Cash and cash equivalents, end of period | $ | 24,645 | $ | 19,586 | $ | 24,645 | $ | 19,586 | ||||||||
| BlackLine, Inc. | |||||||||||||||||
| Reconciliations of Non-GAAP Financial Measures | |||||||||||||||||
| (in thousands, except percentages and per share data) | |||||||||||||||||
| (unaudited) | |||||||||||||||||
| Quarter Ended | Nine Months Ended | ||||||||||||||||
| September 30, | September 30, | ||||||||||||||||
| 2017 | 2016 | 2017 | 2016 | ||||||||||||||
| Non-GAAP Revenues | |||||||||||||||||
| Revenues | $ | 45,871 | $ | 32,196 | $ | 126,798 | $ | 87,783 | |||||||||
| Purchase accounting adjustment to revenues* | - | 179 | - | 179 | |||||||||||||
| Total non-GAAP revenues | $ | 45,871 | $ | 32,375 | $ | 126,798 | $ | 87,962 | |||||||||
| Non-GAAP Gross Profit | |||||||||||||||||
| Gross profit | $ | 34,973 | $ | 24,655 | $ | 96,293 | $ | 66,239 | |||||||||
| Purchase accounting adjustment to revenues | - | 179 | - | 179 | |||||||||||||
| Amortization of developed technology | 1,716 | 1,595 | 5,133 | 4,664 | |||||||||||||
| Stock-based compensation | 334 | 150 | 855 | 425 | |||||||||||||
| Total Non-GAAP Gross Profit | $ | 37,023 | $ | 26,579 | $ | 102,281 | $ | 71,507 | |||||||||
| Gross margin | 76.2 | % | 76.6 | % | 75.9 | % | 75.5 | % | |||||||||
| Non-GAAP gross margin | 80.7 | % | 82.1 | % | 80.7 | % | 81.3 | % | |||||||||
| Non-GAAP Loss from Operations: | |||||||||||||||||
| Loss from operations | $ | (13,205 | ) | $ | (7,167 | ) | $ | (29,352 | ) | $ | (25,225 | ) | |||||
| Purchase accounting adjustment to revenues | - | 179 | - | 179 | |||||||||||||
| Amortization of intangibles | 3,325 | 3,138 | 9,988 | 9,184 | |||||||||||||
| Stock-based compensation | 9,115 | 1,360 | 12,951 | 4,534 | |||||||||||||
| Change in fair value of contingent consideration | 178 | 135 | 367 | 278 | |||||||||||||
| Acquisition-related costs | - | 1,372 | - | 1,372 | |||||||||||||
| Secondary offering costs | - | - | 809 | - | |||||||||||||
| Total non-GAAP loss from operations | $ | (587 | ) | $ | (983 | ) | $ | (5,237 | ) | $ | (9,678 | ) | |||||
| Non-GAAP Net Loss | |||||||||||||||||
| Net loss | $ | (13,092 | ) | $ | (6,619 | ) | $ | (32,216 | ) | $ | (23,495 | ) | |||||
| Benefit from income taxes | (159 | ) | (1,926 | ) | (298 | ) | (4,821 | ) | |||||||||
| Purchase accounting adjustment to revenues | - | 179 | - | 179 | |||||||||||||
| Amortization of intangibles | 3,325 | 3,138 | 9,988 | 9,184 | |||||||||||||
| Stock-based compensation | 9,115 | 1,360 | 12,951 | 4,534 | |||||||||||||
| Accretion of debt discount | - | 96 | - | 242 | |||||||||||||
| Accretion of warrant discount | - | 69 | - | 207 | |||||||||||||
| Change in fair value of contingent consideration | 178 | 135 | 367 | 278 | |||||||||||||
| Change in fair value of the common stock warrant liability | - | - | 3,490 | (300 | ) | ||||||||||||
| Acquisition-related costs | - | 1,372 | - | 1,372 | |||||||||||||
| Secondary offering costs | - | - | 809 | - | |||||||||||||
| Total non-GAAP net loss | $ | (633 | ) | $ | (2,196 | ) | $ | (4,909 | ) | $ | (12,620 | ) | |||||
| Non-GAAP loss per share | $ | (0.01 | ) | $ | (0.05 | ) | $ | (0.09 | ) | $ | (0.31 | ) | |||||
| Weighted average common shares outstanding, basic and diluted | 52,592 | 40,824 | 51,910 | 40,746 | |||||||||||||
| Quarter Ended | Nine Months Ended | ||||||||||||||||
| September 30, | September 30, | ||||||||||||||||
| 2017 | 2016 | 2017 | 2016 | ||||||||||||||
| Non-GAAP Sales and Marketing Expense: | |||||||||||||||||
| Sales and marketing expense | $ | 33,375 | $ | 19,037 | $ | 81,996 | $ | 56,279 | |||||||||
| Amortization of intangibles | (970 | ) | (896 | ) | (2,903 | ) | (2,640 | ) | |||||||||
| Stock-based compensation | (7,761 | ) | (501 | ) | (9,169 | ) | (1,834 | ) | |||||||||
| Total non-GAAP sales and marketing expense | $ | 24,644 | $ | 17,640 | $ | 69,924 | $ | 51,805 | |||||||||
| Non-GAAP Research and Development Expense: | |||||||||||||||||
| Research and development expense | $ | 5,883 | $ | 5,087 | $ | 17,840 | $ | 15,552 | |||||||||
| Stock-based compensation | (236 | ) | (198 | ) | (534 | ) | (532 | ) | |||||||||
| Total non-GAAP research and development expense | $ | 5,647 | $ | 4,889 | $ | 17,306 | $ | 15,020 | |||||||||
| Non-GAAP General and Administrative Expense: | |||||||||||||||||
| General and administrative expense | $ | 8,920 | $ | 7,698 | $ | 25,809 | $ | 19,633 | |||||||||
| Amortization of intangibles | (639 | ) | (647 | ) | (1,952 | ) | (1,880 | ) | |||||||||
| Stock-based compensation | (784 | ) | (511 | ) | (2,393 | ) | (1,743 | ) | |||||||||
| Change in fair value of contingent consideration | (178 | ) | (135 | ) | (367 | ) | (278 | ) | |||||||||
| Acquisition-related costs | - | (1,372 | ) | - | (1,372 | ) | |||||||||||
| Secondary offering costs | - | - | (809 | ) | - | ||||||||||||
| Total non-GAAP general and administrative expense | $ | 7,319 | $ | 5,033 | $ | 20,288 | $ | 14,360 | |||||||||
| Total Non-GAAP Operating Expense | $ | 37,610 | $ | 27,562 | $ | 107,518 | $ | 81,185 | |||||||||
| Free Cash Flow | |||||||||||||||||
| Net cash provided by operating activities | $ | 3,507 | $ | 4,139 | $ | 3,674 | $ | 1,049 | |||||||||
| Capitalized software development costs | (1,362 | ) | (854 | ) | (3,345 | ) | (2,326 | ) | |||||||||
| Purchases of property and equipment | (2,611 | ) | (406 | ) | (3,729 | ) | (1,308 | ) | |||||||||
| Free cash flow | $ | (466 | ) | $ | 2,879 | $ | (3,400 | ) | $ | (2,585 | ) | ||||||
Investor Relations Contact:
The Blueshirt Group
Christine Greany / Maria Riley
415.217.7722
christine@blueshirtgroup.com
maria@blueshirtgroup.com
Media Relations Contact:
The Blueshirt Group
Jeff Fox
415.828.8298
jeff@blueshirtgroup.com
