Model N Announces Fourth Quarter and Fiscal Year 2019 Financial Results
SAN MATEO, Calif.–(BUSINESS WIRE)–Model N, Inc. (NYSE: MODN), the leading provider of cloud revenue management solutions for life sciences and high tech companies, today announced financial results for the fourth quarter and fiscal year ended September 30, 2019.
“Once again our revenue and profitability exceeded our guidance and, even more importantly, our team closed out the year with very strong commercial execution,” said Jason Blessing, chief executive officer of Model N. “Four quarters ago, we announced a strategy to focus the company on our core vertical markets of life sciences and high tech where we have a significant market opportunity, a very favorable competitive position, deep domain expertise, and mission critical solutions. This focus led to excellent execution throughout the fiscal year, enabled us to attract several executives from leading software companies, and it set the foundation for long-term growth and profitability.”
Recent Highlights
- Leading Medical Device Company Transitioning to Model N’s Revenue Cloud – A leader in medical devices and a long-time Model N customer will transition to our platform as part of their Cloud First Strategy. Our solution will be integrated with their CRM application and will enable the deployment of a standard cloud platform across the enterprise. It will provide automation, analytics, sales team self-service, and other features such as advanced contracting. These capabilities will improve go-to-market efficiency and scale.
- Top 10 Global Biopharmaceutical Company Selects Model N – A leading biopharmaceutical company and current customer selected our platform to support its integration of several acquisitions. Our suite of applications will be deployed across the newly combined company. This will enable the customer to adapt quickly to commercial and regulatory changes, and scale across a broad geographic footprint.
- Industry Leader in Memory and Storage Solutions Expands Model N Relationship to Drive Channel Sales – A leading manufacturer of memory and storage solutions expanded its relationship with Model N, replacing point solutions in favor of a broader suite of Model N applications. The customer added Rebates, Market Development Fund Management, and Channel Data Management. These applications will simplify the sales team’s engagement with channel partners and increase revenue.
- Medicaid Drug Rebate Program Summit Helps Customers Plan for Potential Legislation – Drug pricing reform continues to be a key topic in the Senate and House of Representatives as Democrats and Republicans seek lower pricing for patients as well as federal, state, and local governments. At the MDRP Summit, Model N provided guidance on how to prepare for potential legislation and manage the increased complexity of drug pricing rebates and discounts using its cloud-based solutions.
Fourth Quarter 2019 Financial Highlights
- Revenues: Subscription revenues were $27.4 million compared to $25.5 million for the fourth quarter of fiscal year 2018. Total revenues were $36.6 million compared to $36.7 million for the fourth quarter of fiscal year 2018.
- Gross Profit: Gross profit was $19.7 million compared to $21.9 million for the fourth quarter of fiscal year 2018. Gross margins were 54% compared to 60% for the fourth quarter of fiscal year 2018. Non-GAAP gross profit was $22.6 million compared to $23.0 million for the fourth quarter of fiscal year 2018. Non-GAAP gross margins were 62% compared to 63% for the fourth quarter of fiscal year 2018.
- GAAP Loss and Non-GAAP Income from Operations: GAAP loss from operations was $(5.1) million compared to a GAAP loss from operations of $(3.4) million for the fourth quarter of fiscal year 2018. Non-GAAP income from operations was $4.8 million compared to a non-GAAP income from operations of $2.0 million for the fourth quarter of fiscal year 2018.
- Net Loss: GAAP net loss was $(5.7) million compared to a net loss of $(3.6) million for the fourth quarter of fiscal year 2018. GAAP basic and diluted net loss per share attributable to common stockholders was $(0.17) based upon weighted average shares outstanding of 32.8 million, as compared to net loss per share of $(0.12) for the fourth quarter of fiscal year 2018 based upon weighted average shares outstanding of 31.3 million.
- Non-GAAP Net Income: Non-GAAP net income was $4.2 million as compared to a non-GAAP net income of $1.8 million for the fourth quarter of fiscal year 2018. Non-GAAP net income per diluted share was $0.12 based upon diluted weighted average shares outstanding of 34.1 million, as compared to non-GAAP net income per diluted share of $0.06 for the fourth quarter of fiscal year 2018 based upon diluted weighted average shares outstanding of 32.2 million.
- Adjusted EBITDA: Adjusted EBITDA was $5.1 million compared to $2.5 million for the fourth quarter of fiscal year 2018.
Fiscal Year 2019 Financial Highlights
- Revenues: Subscription revenues were $105.2 million compared to $98.3 million in fiscal year 2018. Total revenues were $141.2 million compared to $154.6 million for fiscal year 2018.
- Gross Profit: Gross profit was $75.1 million compared to $89.3 million for fiscal year 2018. Gross margins were 53% compared to 58% for fiscal year 2018. Non-GAAP gross profit was $82.4 million, compared to $94.5 million for fiscal year 2018. Non-GAAP gross margins were 58% compared to 61% for fiscal year 2018.
- GAAP Loss and Non-GAAP Income from Operations: GAAP loss from operations was $(15.0) million compared to a loss from operations of $(20.8) million for fiscal year 2018. Non-GAAP income from operations was $11.8 million compared to a non-GAAP income from operations of $8.7 million for fiscal year 2018.
- Net Loss: GAAP net loss was $(19.3) million compared to net loss of $(28.2) million for fiscal year 2018. GAAP basic and diluted net loss per share attributed to common stockholders was $(0.60) based upon weighted average shares outstanding of 32.2 million as compared to net loss per share of $(0.93) for fiscal year 2018 based upon weighted average shares outstanding of 30.4 million.
- Non-GAAP Net Income: Non-GAAP net income was $7.5 million as compared to non-GAAP net income of $1.3 million for fiscal year 2018. Non-GAAP net income per diluted share was $0.22 based upon diluted weighted average shares outstanding of 33.4 million, as compared to non-GAAP net income per diluted share of $0.04 for fiscal year 2018 based upon diluted weighted average shares outstanding of 32.2 million.
- Adjusted EBITDA: Adjusted EBITDA was $13.1 million compared to $11.5 million for fiscal year 2018.
A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial tables included in this press release.
Guidance
As of November 5, 2019, we are providing guidance for the first quarter of fiscal year 2020 and the full fiscal year ending September 30, 2020.
|
(in $ millions, except per share) |
First Quarter Fiscal 2020 |
Full Year Fiscal 2020 |
||||
|
Total GAAP Revenues |
37.0 – 37.4 |
152.0 – 155.0 |
||||
|
Subscription |
27.6 – 28.0 |
113.0 – 115.0 |
||||
|
Non-GAAP income from operations |
2.9 – 3.3 |
11.0 – 14.0 |
||||
|
Non-GAAP net income per share |
0.05 – 0.07 |
0.22 – 0.31 |
||||
|
Adjusted EBITDA |
3.2 – 3.6 |
12.0 – 15.0 |
Quarterly Results Conference Call
Model N will host a conference call today at 2:00 PM Pacific Time (5:00 PM Eastern Time) to review the company’s financial results for the fourth quarter and fiscal year 2019 ended September 30, 2019. The conference call can be accessed by dialing 877-407-4018 from the United States or +1-201-689-8471 internationally with reference to the company name and conference title, and a live webcast and replay of the conference call can be accessed from the investor relations page of Model N’s website at investor.modeln.com. Following the completion of the call through 11:59 p.m. ET on November 19, 2019, a telephone replay will be available by dialing 844-512-2921 from the United States or +1-412-317-6671 internationally with recording access code 13694888.
About Model N
Model N is a leading provider of cloud revenue management solutions for life sciences and high tech companies. Our software helps companies drive mission-critical business processes such as pricing, quoting, contracting, regulatory compliance, rebates and incentives. With deep industry expertise, Model N supports the complex business needs of the world’s leading brands in pharmaceutical, medical technology, semiconductor, and high-tech manufacturing across more than 120 countries, including Johnson & Johnson, AstraZeneca, Novartis, Microchip Technology and ON Semiconductor. For more information, visit www.modeln.com.
Model N® is the registered trademark of Model N, Inc. Any other company names mentioned are the property of their respective owners and are mentioned for identification purposes only.
Forward-Looking Statements
This press release contains forward-looking statements including, among other things, statements regarding Model N’s first quarter and full year fiscal 2020 financial results and future prospects and results, including the ability to continue to execute on business strategy. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to risks, uncertainties, and assumptions. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. Risks include, but are not limited to: (i) delays in closing customer contracts; (ii) our ability to improve and sustain our sales execution; (iii) the timing of new orders and the associated revenue recognition; (iv) adverse changes in general economic or market conditions; (v) delays or reductions in information technology spending and resulting variability in customer orders from quarter to quarter; (vi) competitive factors, including but not limited to pricing pressures, industry consolidation, entry of new competitors and new applications and marketing initiatives by our competitors; (vii) our ability to manage our growth effectively; and (viii) acceptance of our applications and services by customers; (ix) success of new products; (x) the risk that the strategic initiatives that we may pursue will not result in significant future revenues; (xi) changes in health care regulation and policy and tax in the United States and worldwide; and (xii) our ability to retain customers. Further information on risks that could affect Model N’s results is included in our filings with the Securities and Exchange Commission (“SEC”), including our most recent quarterly report on Form 10-Q and our annual report on Form 10-K for the fiscal year ended September 30, 2018, and any current reports on Form 8-K that we may file from time to time. Should any of these risks or uncertainties materialize, actual results could differ materially from expectations. Model N assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release.
Non-GAAP Financial Measures:
We have provided in this release financial information that has not been prepared in accordance with accounting standards generally accepted in the United States of America (“GAAP”). We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. We believe 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 our financial results with other companies in our industry, many of which present similar non-GAAP financial measures to investors.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures below. A reconciliation of our non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release.
Our reported results include certain non-GAAP financial measures, including non-GAAP gross profit, non-GAAP gross margins, non-GAAP subscription gross margins, non-GAAP income (loss) from operations, non-GAAP net income (loss), non-GAAP net income (loss) per share, and adjusted EBITDA. Non-GAAP gross profit excludes stock-based compensation expenses, amortization of intangible assets, and the deferred revenue adjustments resulting from the Revitas acquisition as they are often excluded by other companies to help investors understand the operational performance of their business. Non-GAAP income (loss) from operations and non-GAAP net income (loss) exclude stock-based compensation expense, amortization of intangible assets, and the deferred revenue adjustment. We have not provided a reconciliation of forecasted non-GAAP results with GAAP results due to the difficulties of estimating certain items such as charges related to stock-based compensation expense. In addition, stock-based compensation expense varies from period to period and from company to company due to such things as differing valuation methodologies and changes in stock price. Adjusted EBITDA is defined as net loss, adjusted for depreciation and amortization, stock-based compensation expense, acquisition & integration related expenses, deferred revenue adjustment, interest (income) expense, net, and other (income) expenses, net, and provision for (benefit from) income taxes. Reconciliation tables are provided in this press release.
We have not reconciled guidance for non-GAAP financial measures to their most directly comparable GAAP measures because certain items that impact these measures are uncertain, out of our control and/or cannot be reasonably predicted. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measures is not available without unreasonable effort.
|
Model N, Inc. |
||||||||
|
|
As of |
|
As of |
|||||
|
Assets |
|
|
|
|||||
|
Current assets |
|
|
|
|||||
|
Cash and cash equivalents |
$ |
60,780 |
|
|
$ |
56,704 |
|
|
|
Accounts receivable, net |
26,953 |
|
|
28,273 |
|
|||
|
Prepaid expenses |
2,776 |
|
|
3,631 |
|
|||
|
Other current assets |
4,039 |
|
|
455 |
|
|||
|
Total current assets |
94,548 |
|
|
89,063 |
|
|||
|
Property and equipment, net |
1,043 |
|
|
2,146 |
|
|||
|
Goodwill |
39,283 |
|
|
39,283 |
|
|||
|
Intangible assets, net |
29,131 |
|
|
34,597 |
|
|||
|
Other assets |
5,588 |
|
|
1,064 |
|
|||
|
Total assets |
$ |
169,593 |
|
|
$ |
166,153 |
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|||||
|
Current liabilities |
|
|
|
|||||
|
Accounts payable |
$ |
2,302 |
|
|
$ |
1,664 |
|
|
|
Accrued employee compensation |
19,906 |
|
|
14,211 |
|
|||
|
Accrued liabilities |
4,354 |
|
|
3,182 |
|
|||
|
Deferred revenue, current portion |
44,875 |
|
|
52,176 |
|
|||
|
Long term debt, current portion |
4,911 |
|
|
1,375 |
|
|||
|
Total current liabilities |
76,348 |
|
|
72,608 |
|
|||
|
Long-term liabilities |
|
|
|
|||||
|
Long term debt |
39,371 |
|
|
52,329 |
|
|||
|
Other long-term liabilities |
1,152 |
|
|
1,182 |
|
|||
|
Total long-term liabilities |
40,523 |
|
|
53,511 |
|
|||
|
Total liabilities |
116,871 |
|
|
126,119 |
|
|||
|
Stockholders’ equity |
|
|
|
|||||
|
Common stock |
5 |
|
|
5 |
|
|||
|
Preferred stock |
— |
|
|
— |
|
|||
|
Additional paid-in capital |
266,295 |
|
|
244,814 |
|
|||
|
Accumulated other comprehensive loss |
(1,169 |
) |
|
(1,285 |
) |
|||
|
Accumulated deficit |
(212,409 |
) |
|
(203,500 |
) |
|||
|
Total stockholders’ equity |
52,722 |
|
|
40,034 |
|
|||
|
Total liabilities and stockholders’ equity |
$ |
169,593 |
|
|
$ |
166,153 |
|
|
|
Model N, Inc. |
|||||||||||||||||
|
|
Three Months Ended September 30, |
|
Fiscal Year Ended September 30, |
||||||||||||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||||
|
Revenues |
|
|
|
|
|
|
|
||||||||||
|
Subscription |
$ |
27,439 |
|
|
$ |
25,513 |
|
|
$ |
105,219 |
|
|
$ |
98,308 |
|
||
|
Professional services |
9,164 |
|
|
11,201 |
|
|
36,016 |
|
|
56,324 |
|
||||||
|
Total revenues |
36,603 |
|
|
36,714 |
|
|
141,235 |
|
|
154,632 |
|
||||||
|
Cost of revenues |
|
|
|
|
|
|
|
||||||||||
|
Subscription |
8,970 |
|
|
9,201 |
|
|
35,218 |
|
|
37,820 |
|
||||||
|
Professional services |
7,983 |
|
|
5,626 |
|
|
30,912 |
|
|
27,514 |
|
||||||
|
Total cost of revenues |
16,953 |
|
|
14,827 |
|
|
66,130 |
|
|
65,334 |
|
||||||
|
Gross profit |
19,650 |
|
|
21,887 |
|
|
75,105 |
|
|
89,298 |
|
||||||
|
Operating expenses |
|
|
|
|
|
|
|
||||||||||
|
Research and development |
8,122 |
|
|
7,555 |
|
|
30,009 |
|
|
32,416 |
|
||||||
|
Sales and marketing |
9,080 |
|
|
8,637 |
|
|
32,894 |
|
|
35,482 |
|
||||||
|
General and administrative |
7,511 |
|
|
9,079 |
|
|
27,213 |
|
|
42,178 |
|
||||||
|
Total operating expenses |
24,713 |
|
|
25,271 |
|
|
90,116 |
|
|
110,076 |
|
||||||
|
Loss from operations |
(5,063 |
) |
|
(3,384 |
) |
|
(15,011 |
) |
|
(20,778 |
) |
||||||
|
Interest expense, net |
620 |
|
|
828 |
|
|
2,933 |
|
|
8,178 |
|
||||||
|
Other expenses (income), net |
(89 |
) |
|
(416 |
) |
|
319 |
|
|
(722 |
) |
||||||
|
Loss before income taxes |
(5,594 |
) |
|
(3,796 |
) |
|
(18,263 |
) |
|
(28,234 |
) |
||||||
|
Provision for (benefit from) income taxes |
61 |
|
|
(177 |
) |
|
1,030 |
|
|
(27 |
) |
||||||
|
Net loss |
$ |
(5,655 |
) |
|
$ |
(3,619 |
) |
|
$ |
(19,293 |
) |
|
$ |
(28,207 |
) |
||
|
Net loss per share: |
|
|
|
|
|
|
|
||||||||||
|
Basic and diluted |
$ |
(0.17 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.60 |
) |
|
$ |
(0.93 |
) |
||
|
Weighted average number of shares used in computing net loss per share: |
|
|
|
|
|
|
|
||||||||||
|
Basic and diluted |
32,846 |
|
|
31,342 |
|
|
32,232 |
|
|
30,370 |
|
||||||
|
Model N, Inc. |
||||||||
|
|
Fiscal Year Ended September 30, |
|||||||
|
|
2019 |
|
2018 |
|||||
|
Cash Flows from Operating Activities |
|
|
|
|||||
|
Net loss |
$ |
(19,293 |
) |
|
$ |
(28,207 |
) |
|
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|||||
|
Depreciation and amortization |
6,790 |
|
|
8,299 |
|
|||
|
Stock-based compensation |
21,340 |
|
|
23,324 |
|
|||
|
Amortization of debt discount and issuance cost |
579 |
|
|
800 |
|
|||
|
Deferred income taxes |
176 |
|
|
(392 |
) |
|||
|
Amortization of capitalized contract acquisition costs |
1,781 |
|
|
— |
|
|||
|
Other non-cash charges |
(121 |
) |
|
137 |
|
|||
|
Loss on debt extinguishment |
— |
|
|
3,142 |
|
|||
|
Changes in assets and liabilities |
|
|
|
|||||
|
Accounts receivable |
860 |
|
|
(3,555 |
) |
|||
|
Prepaid expenses and other assets |
(5,158 |
) |
|
(960 |
) |
|||
|
Deferred cost of implementation services |
— |
|
|
486 |
|
|||
|
Accounts payable |
692 |
|
|
(1,434 |
) |
|||
|
Accrued employee compensation |
2,015 |
|
|
(687 |
) |
|||
|
Other accrued and long-term liabilities |
240 |
|
|
(1,622 |
) |
|||
|
Deferred revenue |
549 |
|
|
3,192 |
|
|||
|
Net cash provided by operating activities |
10,450 |
|
|
2,523 |
|
|||
|
Cash Flows from Investing Activities |
|
|
|
|||||
|
Purchases of property and equipment |
(280 |
) |
|
(252 |
) |
|||
|
Net cash used in investing activities |
(280 |
) |
|
(252 |
) |
|||
|
Cash Flows from Financing Activities |
|
|
|
|||||
|
Proceeds from exercise of stock options and issuance of common stock relating to employee stock purchase plan |
3,870 |
|
|
4,439 |
|
|||
|
Proceeds from term loan |
— |
|
|
49,588 |
|
|||
|
Debt issuance costs |
— |
|
|
(280 |
) |
|||
|
Principal payments on term loan |
(10,000 |
) |
|
(55,250 |
) |
|||
|
Early payment penalty |
— |
|
|
(1,500 |
) |
|||
|
Net cash used in financing activities |
(6,130 |
) |
|
(3,003 |
) |
|||
|
Effect of exchange rate changes on cash and cash equivalents |
36 |
|
|
(122 |
) |
|||
|
Net increase (decrease) in cash and cash equivalents |
4,076 |
|
|
(854 |
) |
|||
|
Cash and cash equivalents |
|
|
|
|||||
|
Beginning of period |
56,704 |
|
|
57,558 |
|
|||
|
End of period |
$ |
60,780 |
|
|
$ |
56,704 |
|
|
|
Model N, Inc. |
|||||||||||||||||
|
|
|||||||||||||||||
|
|
|
Three Months Ended |
|
Fiscal Year Ended |
|||||||||||||
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|||||||||
|
Reconciliation from GAAP net loss to adjusted EBITDA |
|
|
|
|
|
|
|
|
|||||||||
|
GAAP net loss |
|
$ |
(5,655 |
) |
|
$ |
(3,619 |
) |
|
$ |
(19,293 |
) |
|
$ |
(28,207 |
) |
|
|
Reversal of non-GAAP items |
|
|
|
|
|
|
|
|
|||||||||
|
Stock-based compensation expense |
|
8,518 |
|
|
4,012 |
|
|
21,340 |
|
|
23,324 |
|
|||||
|
Depreciation and amortization |
|
1,599 |
|
|
1,889 |
|
|
6,790 |
|
|
8,299 |
|
|||||
|
Deferred revenue adjustment (c) |
|
— |
|
|
— |
|
|
— |
|
|
627 |
|
|||||
|
Interest expense, net |
|
620 |
|
|
828 |
|
|
2,933 |
|
|
8,178 |
|
|||||
|
Other expenses (income), net |
|
(89 |
) |
|
(416 |
) |
|
319 |
|
|
(722 |
) |
|||||
|
Provision for (benefit from) income taxes |
|
61 |
|
|
(177 |
) |
|
1,030 |
|
|
(27 |
) |
|||||
|
Adjusted EBITDA |
|
$ |
5,054 |
|
|
$ |
2,517 |
|
|
$ |
13,119 |
|
|
$ |
11,472 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
Three Months Ended |
|
Fiscal Year Ended |
|||||||||||||
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|||||||||
|
Reconciliation from GAAP revenue to revenue before deferred revenue adjustment |
|
|
|
|
|
|
|
|
|||||||||
|
GAAP revenue |
|
$ |
36,603 |
|
|
$ |
36,714 |
|
|
$ |
141,235 |
|
|
$ |
154,632 |
|
|
|
Deferred revenue adjustment (c) |
|
— |
|
|
— |
|
|
— |
|
|
627 |
|
|||||
|
Revenue before deferred revenue adjustment |
|
$ |
36,603 |
|
|
$ |
36,714 |
|
|
$ |
141,235 |
|
|
$ |
155,259 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
Three Months Ended |
|
Fiscal Year Ended |
|||||||||||||
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|||||||||
|
Reconciliation from GAAP gross profit to non-GAAP gross profit |
|
|
|
|
|
|
|
|
|||||||||
|
GAAP gross profit |
|
$ |
19,650 |
|
|
$ |
21,887 |
|
|
$ |
75,105 |
|
|
$ |
89,298 |
|
|
|
Reversal of non-GAAP expenses |
|
|
|
|
|
|
|
|
|||||||||
|
Stock-based compensation (a) |
|
2,455 |
|
|
684 |
|
|
5,362 |
|
|
2,656 |
|
|||||
|
Amortization of intangible assets (b) |
|
476 |
|
|
476 |
|
|
1,904 |
|
|
1,904 |
|
|||||
|
Deferred revenue adjustment (c) |
|
— |
|
|
— |
|
|
— |
|
|
627 |
|
|||||
|
Non-GAAP gross profit |
|
$ |
22,581 |
|
|
$ |
23,047 |
|
|
$ |
82,371 |
|
|
$ |
94,485 |
|
|
|
Percentage of revenue before deferred revenue adjustment |
|
61.7 |
% |
|
62.8 |
% |
|
58.3 |
% |
|
60.9 |
% |
|||||
|
|
|
Three Months Ended |
|
Fiscal Year Ended |
||||||||||||||
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||||
|
Reconciliation from GAAP subscription gross profit to non-GAAP subscription gross profit |
|
|
|
|
|
|
|
|
||||||||||
|
GAAP subscription gross profit |
|
$ |
18,469 |
|
|
$ |
16,312 |
|
|
$ |
70,001 |
|
|
$ |
60,488 |
|
|
|
|
Reversal of non-GAAP expenses |
|
|
|
|
|
|
|
|
||||||||||
|
Stock-based compensation (a) |
|
1,104 |
|
|
428 |
|
|
2,468 |
|
|
1,400 |
|
||||||
|
Amortization of intangible assets (b) |
|
476 |
|
|
476 |
|
|
1,904 |
|
|
1,904 |
|
||||||
|
Non-GAAP subscription gross profit |
|
$ |
20,049 |
|
|
$ |
17,216 |
|
|
$ |
74,373 |
|
|
$ |
63,792 |
|
|
|
|
|
Three Months Ended |
|
Fiscal Year Ended |
|
|||||||||||||||||||
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
||||||||||||||
|
Reconciliation from GAAP operating loss to non-GAAP operating income |
|
|
|
|
|
|
|
|
|||||||||||||||
|
GAAP operating loss |
|
$ |
(5,063 |
) |
|
$ |
(3,384 |
) |
|
$ |
(15,011 |
) |
|
$ |
(20,778 |
) |
|||||||
|
Reversal of non-GAAP expenses |
|
|
|
|
|
|
|
|
|||||||||||||||
|
Stock-based compensation (a) |
|
8,518 |
|
|
4,012 |
|
|
21,340 |
|
|
|
23,324 |
|
||||||||||
|
Amortization of intangible assets (b) |
|
1,366 |
|
|
1,381 |
|
|
5,467 |
|
|
5,562 |
|
|
||||||||||
|
Deferred revenue adjustment (c) |
|
— |
|
|
— |
|
|
— |
|
|
627 |
|
|
||||||||||
|
Non-GAAP operating income |
|
$ |
4,821 |
|
|
$ |
2,009 |
|
|
$ |
11,796 |
|
|
$ |
8,735 |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Numerator |
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Reconciliation between GAAP net loss and non-GAAP net income |
|
|
|
|
|
|
|
|
|
||||||||||||||
|
GAAP net loss |
|
$ |
(5,655 |
) |
|
$ |
(3,619 |
) |
|
$ |
(19,293 |
) |
|
$ |
(28,207 |
) |
|
||||||
|
Reversal of non-GAAP expenses |
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Stock-based compensation (a) |
|
8,518 |
|
|
4,012 |
|
|
21,340 |
|
|
23,324 |
|
|
||||||||||
|
Amortization of intangible assets (b) |
|
1,366 |
|
|
1,381 |
|
|
5,467 |
|
|
5,562 |
|
|
||||||||||
|
Deferred revenue adjustment (c) |
|
— |
|
|
— |
|
|
— |
|
|
627 |
|
|
||||||||||
|
Non-GAAP net income |
|
$ |
4,229 |
|
|
$ |
1,774 |
|
|
$ |
7,514 |
|
|
$ |
1,306 |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Denominator |
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Reconciliation between GAAP and non-GAAP net income (loss) per share |
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Shares used in computing GAAP net loss per share: |
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Basic |
|
32,846 |
|
|
31,342 |
|
|
32,232 |
|
|
30,370 |
|
|
||||||||||
|
Diluted |
|
32,846 |
|
|
31,342 |
|
|
32,232 |
|
|
30,370 |
|
|
||||||||||
|
Shares used in computing non-GAAP net income per share |
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Basic |
|
32,846 |
|
|
31,342 |
|
|
32,232 |
|
|
30,370 |
|
|
||||||||||
|
Diluted |
|
34,149 |
|
|
32,238 |
|
|
33,423 |
|
|
32,243 |
|
|
||||||||||
|
GAAP net loss per share |
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Basic and diluted |
|
$ |
(0.17 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.60 |
) |
|
$ |
(0.93 |
) |
|
||||||
|
Non-GAAP net income per share |
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Basic |
|
$ |
0.13 |
|
|
$ |
0.06 |
|
|
$ |
0.23 |
|
|
$ |
0.04 |
|
|
||||||
|
Diluted |
|
$ |
0.12 |
|
|
$ |
0.06 |
|
|
$ |
0.22 |
|
|
$ |
0.04 |
|
|
||||||
|
|
|
Three Months Ended |
|
Fiscal Year Ended |
|||||||||||||
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|||||||||
|
Amortization of intangibles assets recorded in the statements of operations |
|
|
|
|
|
|
|
|
|||||||||
|
Cost of revenues |
|
|
|
|
|
|
|
|
|||||||||
|
Subscription |
|
$ |
476 |
|
|
$ |
476 |
|
|
$ |
1,904 |
|
|
$ |
1,904 |
|
|
|
Professional services |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|||||
|
Total amortization of intangibles assets in cost of revenue (b) |
|
476 |
|
|
476 |
|
|
1,904 |
|
|
1,904 |
|
|||||
|
Operating expenses |
|
|
|
|
|
|
|
|
|||||||||
|
Research and development |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|||||
|
Sales and marketing |
|
890 |
|
|
905 |
|
|
3,563 |
|
|
3,658 |
|
|||||
|
General and administrative |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|||||
|
Total amortization of intangibles assets in operating expense (b) |
|
890 |
|
|
905 |
|
|
3,563 |
|
|
3,658 |
|
|||||
|
Total amortization of intangibles assets (b) |
|
$ |
1,366 |
|
|
$ |
1,381 |
|
|
$ |
5,467 |
|
|
$ |
5,562 |
|
|
|
|
|
Three Months Ended |
|
Fiscal Year Ended |
|||||||||||||
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|||||||||
|
Stock-based compensation recorded in the statements of operations |
|
|
|
|
|
|
|
|
|||||||||
|
Cost of revenues |
|
|
|
|
|
|
|
|
|||||||||
|
Subscription |
|
$ |
1,104 |
|
|
$ |
428 |
|
|
$ |
2,468 |
|
|
$ |
1,400 |
|
|
|
Professional services |
|
1,351 |
|
|
256 |
|
|
2,894 |
|
|
1,256 |
|
|||||
|
Total stock-based compensation in cost of revenue (a) |
|
2,455 |
|
|
684 |
|
|
5,362 |
|
|
2,656 |
|
|||||
|
Operating expenses |
|
|
|
|
|
|
|
|
|||||||||
|
Research and development |
|
1,749 |
|
|
839 |
|
|
4,145 |
|
|
2,983 |
|
|||||
|
Sales and marketing |
|
1,817 |
|
|
1,007 |
|
|
4,641 |
|
|
3,524 |
|
|||||
|
General and administrative |
|
2,497 |
|
|
1,482 |
|
|
7,192 |
|
|
14,161 |
|
|||||
|
Total stock-based compensation in operating expense (a) |
|
6,063 |
|
|
3,328 |
|
|
15,978 |
|
|
20,668 |
|
|||||
|
Total stock-based compensation (a) |
|
$ |
8,518 |
|
|
$ |
4,012 |
|
|
$ |
21,340 |
|
|
$ |
23,324 |
|
|
Contacts
Investor Relations Contact:
ICR for Model N
Garo Toomajanian, 650-610-4998
investorrelations@modeln.com
Media Contact:
pr@modeln.com
