Q2 revenues of $24.6 million, a 21% year-over-year increase
Raised over $100 million in growth capital through IPO listing on the
New York Stock Exchange
REDWOOD CITY, Calif.--(BUSINESS WIRE)--
Model N, Inc., (NYSE: MODN), the leader in Revenue Management solutions
for the life science and technology industries, today announced
financial results for the second quarter of fiscal 2013, which ended
March 31, 2013.
“We are pleased with our second quarter results, which exceeded our
expectations on both revenue and profitability,” said Zack Rinat,
Founder, Chairman, and Chief Executive Officer at Model N. “We are still
in the early stages of a major new market opportunity as companies adopt
modern software solutions to address their Revenue Management
challenges, replacing outdated custom solutions and manual business
processes along the way. Model N has emerged as the market leader as a
result of our comprehensive Revenue Management platform, vertical focus
and demonstrated history of delivering business value.”
“We are pleased to have completed our IPO in March. The increased market
awareness and financial resources from this event will help us to
execute the company’s growth plans and capitalize on our growing,
multi-billion dollar market opportunity,” added Rinat.
Second Quarter Fiscal 2013 Financial Highlights:
- Total Revenues: Total revenues were $24.6 million, a
year-over-year increase of 21% compared to $20.2 million for the
second quarter of fiscal 2012.
- Gross Profit: Gross profit was $13.0 million, compared to $9.6
million for the second quarter of fiscal 2012. Non-GAAP gross profit
was $13.3 million compared to $11.1 million for the second quarter of
fiscal 2012.
- Income (Loss) from operations: GAAP loss from operations was
$1.0 million, compared to $3.7 million for the second quarter of
fiscal 2012. Non-GAAP income from operations was slightly above
breakeven, compared to a loss from operations of $0.8 million for the
second quarter of fiscal 2012.
- Net loss: GAAP net loss was $1.9 million, compared to $4.2
million for the second quarter of fiscal 2012. GAAP net loss per share
was $0.19 based upon weighted average shares outstanding of 10.1
million, as compared to $0.54 for the second quarter of fiscal 2012
based upon weighted average shares outstanding of 7.7 million.
- Non-GAAP net loss: Non-GAAP net loss was $0.2 million, as
compared to $1.1 million for the second quarter of fiscal 2012.
Non-GAAP net loss per share was $0.01 based upon weighted average
shares outstanding of 16.4 million, as compared to $0.07 for the
second quarter of fiscal 2012 based upon weighted average shares
outstanding of 15.0 million.
- Adjusted EBITDA: Adjusted EBITDA was $0.5 million, compared to
($0.4) million for the second quarter of fiscal 2012.
Use of Non-GAAP Financial Measures
A reconciliation of GAAP to non-GAAP financial measures has been
provided in the financial statement tables included in this press
release. An explanation of these measures, including the reasons
management uses each measure, is also included below under the heading
"Non-GAAP Financial Measures."
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 second
quarter of fiscal 2013, which ended March 31, 2013. To access the call,
please dial (888) 503-8169 in the U.S. or (719) 325-2454
internationally. Passcode is 4807849. A live webcast of the conference
will be accessible from Model N’s website at: http://investor.modeln.com.
Following the completion of the call through 11:59 p.m. ET on May 14,
2013, a recording will be available for replay at: http://investor.modeln.com
and a telephone replay will be available by dialing (877) 870-5176 in
the U.S. or (858) 384-5517 internationally with recording access code
4807849.
About Model N
Model N is the leader in Revenue Management solutions. Model N helps our
customers dramatically improve pricing and contracting, rebates and
incentives, and sales and marketing performance analysis to increase
their revenue. Model N drives improved pricing, margin, and revenue
performance for our customers through a powerful combination of best
practices, highly configurable software applications, comprehensive
services, and actionable analytics. Model N leverages its deep industry
expertise to support the unique business needs of Life Sciences and
Technology manufacturers in more than 50 countries. Global Customers
include: Allergan, Amgen, Atmel, Boston Scientific, Bristol-Myers
Squibb, Dell, Johnson & Johnson, Linear Technology, Merck, Marvell,
Maxim, Micron, Nokia, Novartis, Novo Nordisk, ON Semiconductor,
STMicroelectronics, and Watson Pharmaceuticals. Learn more at: http://www.modeln.com.
Model N is traded on the New York Stock Exchange under the symbol MODN.
Forward-Looking Statements
This press release contains forward-looking statements including, among
other things, statements regarding Model N’s growth plans. 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) adverse changes in general economic or
market conditions; (ii) delays or reductions in information technology
spending and resulting variability in customer orders from quarter to
quarter; (iii) competitive factors, including but not limited to pricing
pressures, industry consolidation, entry of new competitors and new
applications and marketing initiatives by our competitors; (iv) our
ability to manage our growth effectively; and (v) acceptance of our
applications and services by customers. Further information on risks
that could affect Model N’s results is included in our filings with the
Securities and Exchange Commission, including our final prospectus, our
quarterly report on Form 10-Q for the quarter ended March 31, 2013, and
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 operating income (loss), non-GAAP net income (loss),
weighted-average shares outstanding, non-GAAP net income (loss) per
share, and adjusted EBITDA. Non-GAAP operating income (loss) and
non-GAAP net income (loss) exclude expenses related to stock-based
compensation expense, LeapFrogRX compensation charges, amortization of
intangible assets, and changes in fair value of preferred stock warrant
liability as they are often excluded by other companies to help
investors understand the operational performance of their business and,
in the case of stock-based compensation, can be difficult to predict. In
addition, stock-based compensation expense varies from period to period
and company to company due to such things as differing valuation
methodologies and changes in stock price. Adjusted EBITDA is defined as
net income (loss), adjusted for LeapFrogRX compensation charges,
depreciation and amortization, stock-based compensation expense,
interest and other expense, net, and provision for income taxes.
Reconciliation tables are provided in this press release.
| Model N Inc. |
| Condensed Consolidated Balance Sheets |
| (dollars in thousands) |
| (unaudited) |
|
|
|
| March 31, |
|
|
| September 30, |
| | | | 2013 | | | | 2012 |
| Assets | | | | | | | | |
|
Current assets:
| | | | | | | | |
|
Cash and cash equivalents
| | | |
$
|
109,024
| | | | |
$
|
15,768
| |
|
Short-term investments
| | | | |
63
| | | | | |
-
| |
Accounts receivable, net of allowances of $98 and $55 as of March
31, 2013 and September 30, 2012, respectively
| | | | |
15,101
| | | | | |
12,468
| |
|
Deferred cost of implementation services, current portion
| | | | |
1,116
| | | | | |
1,077
| |
|
Prepaid expenses
| | | | |
1,621
| | | | | |
2,246
| |
|
Other current assets
| | | |
|
327
|
| | | |
|
552
|
|
|
Total current assets
| | | | |
127,252
| | | | | |
32,111
| |
|
Property and equipment, net
| | | | |
5,966
| | | | | |
4,590
| |
|
Goodwill
| | | | |
1,509
| | | | | |
1,509
| |
|
Other intangible assets, net
| | | | |
1,083
| | | | | |
1,248
| |
|
Other assets
| | | |
|
711
|
| | | |
|
1,140
|
|
|
Total assets
| | | |
$
|
136,521
|
| | | |
$
|
40,598
|
|
| Liabilities and stockholders' equity | | | | | | | | |
|
Current liabilities:
| | | | | | | | |
|
Accounts payable
| | | |
$
|
539
| | | | |
$
|
196
| |
|
Accrued employee compensation
| | | | |
8,045
| | | | | |
7,650
| |
|
Accrued liabilities
| | | | |
4,670
| | | | | |
4,432
| |
|
Deferred revenue, current portion
| | | | |
28,118
| | | | | |
29,362
| |
|
Capital lease obligations, current portion
| | | | |
519
| | | | | |
555
| |
|
Loan obligations, current portion
| | | |
|
2,500
|
| | | |
|
2,500
|
|
|
Total current liabilities
| | | | |
44,391
| | | | | |
44,695
| |
|
Long-term liabilities:
| | | | | | | | |
|
Deferred revenue, net of current portion
| | | | |
2,398
| | | | | |
2,289
| |
|
Capital lease obligations, net of current portion
| | | | |
87
| | | | | |
349
| |
|
Loan obligations, net of current portion
| | | | |
1,397
| | | | | |
2,627
| |
|
Other long-term liabilities
| | | |
|
688
|
| | | |
|
1,125
|
|
|
Total long-term liabilities
| | | |
|
4,570
|
| | | |
|
6,390
|
|
|
Total liabilities
| | | |
|
48,961
|
| | | |
|
51,085
|
|
|
Convertible preferred stock:
| | | | |
-
| | | | | |
41,776
| |
|
Stockholders' equity:
| | | | | | | | |
|
Common stock
| | | | |
3
| | | | | |
1
| |
|
Preferred stock
| | | | |
-
| | | | | |
-
| |
|
Additional paid-in capital
| | | | |
152,099
| | | | | |
9,045
| |
|
Accumulated other comprehensive loss
| | | | |
(144
|
)
| | | | |
(120
|
)
|
|
Accumulated deficit
| | | |
|
(64,398
|
)
| | | |
|
(61,189
|
)
|
|
Total equity
| | | |
|
87,560
|
| | | |
|
(52,263
|
)
|
|
Total liabilities, convertible preferred stock and stockholders'
equity
| | | |
$
|
136,521
|
| | | |
$
|
40,598
|
|
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
| Model N Inc. |
| Condensed Consolidated Statements of Operations |
| (dollars and shares in thousands, except per share amounts) |
| (unaudited) |
|
|
|
| Three months ended |
|
| Six months ended |
| | | | March 31, |
|
| March 31, |
| | March 31, |
|
| March 31, |
| | | | 2013 | | | 2012 | | | 2013 | | | 2012 |
|
Revenue:
| | | | | | | | | | | | | |
|
License and implementation
| | | |
$
|
14,481
| | | |
$
|
11,659
| | | |
$
|
26,943
| | | |
$
|
23,024
| |
|
SaaS and maintenance
| | | |
|
10,078
|
| | |
|
8,581
|
| | |
|
19,957
|
| | |
|
15,273
|
|
|
Total revenue
| | | | |
24,559
| | | | |
20,240
| | | | |
46,900
| | | | |
38,297
| |
|
Cost of revenue:
| | | | | | | | | | | | | |
|
License and implementation
| | | | |
6,800
| | | | |
5,515
| | | | |
12,360
| | | | |
10,543
| |
|
SaaS and maintenance
| | | |
|
4,781
|
| | |
|
5,168
|
| | |
|
9,304
|
| | |
|
7,664
|
|
|
Total cost of revenue
| | | |
|
11,581
|
| | |
|
10,683
|
| | |
|
21,664
|
| | |
|
18,207
|
|
|
Gross profit
| | | |
|
12,978
|
| | |
|
9,557
|
| | |
|
25,236
|
| | |
|
20,090
|
|
|
Operating expenses:
| | | | | | | | | | | | | |
|
Research and development
| | | | |
4,483
| | | | |
4,817
| | | | |
8,602
| | | | |
8,990
| |
|
Sales and marketing
| | | | |
5,770
| | | | |
5,705
| | | | |
11,106
| | | | |
9,686
| |
|
General and administrative
| | | |
|
3,758
|
| | |
|
2,773
|
| | |
|
7,635
|
| | |
|
5,166
|
|
|
Total operating expenses
| | | |
|
14,011
|
| | |
|
13,295
|
| | |
|
27,343
|
| | |
|
23,842
|
|
|
Operating loss
| | | | |
(1,033
|
)
| | | |
(3,738
|
)
| | | |
(2,107
|
)
| | | |
(3,752
|
)
|
|
Interest expense, net
| | | | |
115
| | | | |
170
| | | | |
241
| | | | |
354
| |
|
Other expense, net
| | | |
|
660
|
| | |
|
179
|
| | |
|
712
|
| | |
|
585
|
|
|
Loss before income taxes
| | | | |
(1,808
|
)
| | | |
(4,087
|
)
| | | |
(3,060
|
)
| | | |
(4,691
|
)
|
|
Provision for income taxes
| | | |
|
88
|
| | |
|
68
|
| | |
|
149
|
| | |
|
139
|
|
Net loss attributable to Model N Inc. common stockholders
| | | |
|
(1,896
|
)
| | |
|
(4,155
|
)
| | |
|
(3,209
|
)
| | |
|
(4,830
|
)
|
Net loss per share attributable to Model N Inc. common stockholders
| | | |
$
|
(0.19
|
)
| | |
$
|
(0.54
|
)
| | |
$
|
(0.35
|
)
| | |
$
|
(0.63
|
)
|
Weighted average number of shares used in computing net loss per
common share
| | | |
|
10,137
|
| | |
|
7,731
|
| | |
|
9,071
|
| | |
|
7,677
|
|
| | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | |
|
| Model N Inc. |
| Condensed Consolidated Statements of Cash Flows |
| (dollars in thousands) |
| (unaudited) |
|
|
|
| Three months ended |
|
| Six months ended |
| | | | March 31, | | | March 31, |
| | | | 2013 |
|
| 2012 | | | 2013 |
|
| 2012 |
|
Cash flows from operating activities:
| | | | | | | | | | | | | |
|
Net loss
| | | |
$
|
(1,896
|
)
| | |
$
|
(4,155
|
)
| | |
$
|
(3,209
|
)
| | |
$
|
(4,830
|
)
|
Adjustments to reconcile net loss to net cash provided by (used
in) operating activities:
| | | | | | | | | | | | | |
|
Depreciation and amortization
| | | | |
495
| | | | |
391
| | | | |
937
| | | | |
704
| |
|
Amortization of other intangible assets
| | | | |
84
| | | | |
68
| | | | |
165
| | | | |
68
| |
|
Stock-based compensation
| | | | |
942
| | | | |
1,086
| | | | |
1,499
| | | | |
1,594
| |
|
Amortization of debt discount
| | | | |
10
| | | | |
11
| | | | |
20
| | | | |
21
| |
|
Changes in fair value of preferred stock warrant liability
| | | | |
685
| | | | |
127
| | | | |
671
| | | | |
443
| |
|
Provision for doubtful accounts
| | | | |
1
| | | | |
-
| | | | |
9
| | | | |
(10
|
)
|
|
Deferred income taxes
| | | | |
34
| | | | |
32
| | | | |
59
| | | | |
63
| |
Changes in operating assets and liabilities, net of acquired
assets and liabilities:
| | | | | | | | | | | | | |
|
Accounts receivable
| | | | |
748
| | | | |
1,301
| | | | |
(2,732
|
)
| | | |
1,967
| |
|
Prepaid expenses and other current assets
| | | | |
(151
|
)
| | | |
(302
|
)
| | | |
(1,491
|
)
| | | |
(159
|
)
|
|
Deferred cost of implementation services
| | | | |
273
| | | | |
(217
|
)
| | | |
290
| | | | |
(298
|
)
|
|
Accounts payable
| | | | |
(862
|
)
| | | |
1,284
| | | | |
307
| | | | |
1,593
| |
|
Accrued employee compensation
| | | | |
449
| | | | |
3,231
| | | | |
424
| | | | |
1,655
| |
|
Other accrued and long-term liabilities
| | | | |
(457
|
)
| | | |
363
| | | | |
1,579
| | | | |
601
| |
|
Deferred revenue
| | | |
|
(1,756
|
)
| | |
|
(2,315
|
)
| | |
|
(1,045
|
)
| | |
|
2,177
|
|
|
Net cash provided by (used in) operating activities
| | | |
|
(1,401
|
)
| | |
|
905
|
| | |
|
(2,517
|
)
| | |
|
5,589
|
|
|
Cash flows from investing activities:
| | | | | | | | | | | | | |
|
Purchases of property and equipment
| | | | |
(308
|
)
| | | |
(268
|
)
| | | |
(472
|
)
| | | |
(767
|
)
|
|
Capitalization of software development costs
| | | | |
(831
|
)
| | | |
-
| | | | |
(1,722
|
)
| | | |
-
| |
|
Purchase of short-term investments
| | | | |
-
| | | | |
-
| | | | |
(63
|
)
| | | |
-
| |
|
Acquisition of a business
| | | |
|
-
|
| | |
|
(3,000
|
)
| |
|
|
-
|
| | |
|
(3,000
|
)
|
|
Net cash used in investing activities
| | | |
|
(1,139
|
)
| | |
|
(3,268
|
)
| | |
|
(2,257
|
)
| | |
|
(3,767
|
)
|
|
Cash flows from financing activities:
| | | | | | | | | | | | | |
|
Proceeds from initial public offering, net of offering costs of $7.6
million | | | | |
101,064
| | | | |
-
| | | | |
101,064
| | | | |
-
| |
|
Proceeds from issuance of common stock upon exercise of stock options
| | | | |
423
| | | | |
29
| | | | |
513
| | | | |
115
| |
|
Payments for deferred offering costs
| | | | |
(1,761
|
)
| | | |
-
| | | | |
(1,976
|
)
| | | |
-
| |
|
Principal payments on capital lease obligations
| | | | |
(158
|
)
| | | |
(144
|
)
| | | |
(298
|
)
| | | |
(241
|
)
|
|
Principal payments on loan
| | | |
|
(625
|
)
| | |
|
(625
|
)
| | |
|
(1,250
|
)
| | |
|
(1,042
|
)
|
|
Net cash provided by (used in) financing activities
| | | |
|
98,943
|
| | |
|
(740
|
)
| | |
|
98,053
|
| | |
|
(1,168
|
)
|
|
Effect of exchange rate changes on cash and cash equivalents
| | | |
|
(12
|
)
| | |
|
22
|
| | |
|
(23
|
)
| | |
|
(15
|
)
|
|
Net change in cash and cash equivalents
| | | | |
96,391
| | | | |
(3,081
|
)
| | | |
93,256
| | | | |
639
| |
|
Cash and cash equivalents at beginning of period
| | | |
|
12,633
|
| | |
|
22,140
|
| | |
|
15,768
|
| | |
|
18,420
|
|
|
Cash and cash equivalents at end of period
| | | |
$
|
109,024
|
| | |
$
|
19,059
|
| | |
$
|
109,024
|
| | |
$
|
19,059
|
|
| | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | |
|
| Model N Inc. |
| Reconciliation of GAAP to Non-GAAP Operating Results |
| (dollars and shares in thousands, except per share amounts) |
| (unaudited) |
|
|
|
| Three months ended March 31, |
|
| Six months ended March 31, |
| | | | 2013 |
|
| 2012 | | | 2013 |
|
| 2012 |
|
Reconciliation from GAAP net income (loss) to adjusted EBITDTA
| | | | | | | | | | | | | |
|
GAAP net income (loss):
| | | |
$
|
(1,896
|
)
| | |
$
|
(4,155
|
)
| | |
$
|
(3,209
|
)
| | |
$
|
(4,830
|
)
|
|
Reversal of non-GAAP expenses:
| | | | | | | | | | | | | |
|
Stock-based compensation
| | | | |
942
| | | | |
1,086
| | | | |
1,499
| | | | |
1,594
| |
|
Depreciation and amortization
| | | | |
578
| | | | |
459
| | | | |
1,102
| | | | |
772
| |
|
Interest expense, net
| | | | |
115
| | | | |
170
| | | | |
241
| | | | |
354
| |
|
Other expense, net
| | | | |
660
| | | | |
179
| | | | |
712
| | | | |
585
| |
|
LeapFrogRx compensation charges
| | | | |
25
| | | | |
1,789
| | | | |
414
| | | | |
1,789
| |
|
Provision for income taxes
| | | |
|
88
|
| | |
|
68
|
| | |
|
149
|
| | |
|
139
|
|
|
Adjusted EBITDA
| | | |
$
|
512
|
| | |
$
|
(404
|
)
| | |
$
|
908
|
| | |
$
|
403
|
|
| | | | | | | | | | | | |
|
| | | | Three months ended March 31, |
| | Six months ended March 31, |
| | | | 2013 | | | 2012 | | | 2013 | | | 2012 |
|
Reconciliation from GAAP total gross profit to non-GAAP total gross
profit:
| | | | | | | | | | | | | |
|
GAAP gross profit:
| | | |
$
|
12,978
| | | |
$
|
9,557
| | | |
$
|
25,236
| | | |
$
|
20,090
| |
|
Reversal of non-GAAP expenses:
| | | | | | | | | | | | | |
|
Stock-based compensation (a)
| | | | |
204
| | | | |
437
| | | | |
318
| | | | |
538
| |
|
Amortization of intangible assets (b)
| | | | |
61
| | | | |
50
| | | | |
121
| | | | |
50
| |
|
LeapFrogRx compensation charges (c)
| | | |
|
16
|
| | |
|
1,092
|
| | |
|
257
|
| | |
|
1,092
|
|
|
Non-GAAP gross profit
| | | |
$
|
13,259
|
| | |
$
|
11,136
|
| | |
$
|
25,932
|
| | |
$
|
21,770
|
|
|
Percentage of revenue
| | | | |
54.0
|
%
| | | |
55.0
|
%
| | | |
55.3
|
%
| | | |
56.8
|
%
|
| | | | | | | | | | | | |
|
| | | | Three months ended March 31, | | | Six months ended March 31, |
| | | | 2013 | | | 2012 | | | 2013 | | | 2012 |
Reconciliation from GAAP gross profit to non-GAAP gross profit:
| | | | | | | | | | | | | |
|
for license and implementation:
| | | | | | | | | | | | | |
|
GAAP gross profit - license and implementation:
| | | |
$
|
7,681
| | | |
$
|
6,144
| | | |
$
|
14,583
| | | |
$
|
12,481
| |
|
Reversal of non-GAAP expenses:
| | | | | | | | | | | | | |
|
Stock-based compensation (a)
| | | |
|
90
|
| | |
|
69
|
| | |
|
130
|
| | |
|
146
|
|
|
Non-GAAP gross profit - license and implementation
| | | |
$
|
7,771
|
| | |
$
|
6,213
|
| | |
$
|
14,713
|
| | |
$
|
12,627
|
|
|
Percentage of revenue
| | | | |
53.7
|
%
| | | |
53.3
|
%
| | | |
54.6
|
%
| | | |
54.8
|
%
|
| | | | | | | | | | | | |
|
| | | | Three months ended March 31, | | | Six months ended March 31, |
| | | | 2013 | | | 2012 | | | 2013 | | | 2012 |
|
Reconciliation from GAAP gross profit to non-GAAP gross profit:
| | | | | | | | | | | | | |
|
for SaaS and maintenance:
| | | | | | | | | | | | | |
|
GAAP gross profit - SaaS and maintenance:
| | | |
$
|
5,297
| | | |
$
|
3,413
| | | |
$
|
10,653
| | | |
$
|
7,609
| |
|
Reversal of non-GAAP expenses:
| | | | | | | | | | | | | |
|
Stock-based compensation (a)
| | | | |
114
| | | | |
368
| | | | |
188
| | | | |
392
| |
|
Amortization of intangible assets (b)
| | | | |
61
| | | | |
50
| | | | |
121
| | | | |
50
| |
|
LeapFrogRx compensation charges (c)
| | | |
|
16
|
| | |
|
1,092
|
| | |
|
257
|
| | |
|
1,092
|
|
|
Non-GAAP gross profit - SaaS and maintenance
| | | |
$
|
5,488
|
| | |
$
|
4,923
|
| | |
$
|
11,219
|
| | |
$
|
9,143
|
|
|
Percentage of revenue
| | | | |
54.5
|
%
| | | |
57.4
|
%
| | | |
56.2
|
%
| | | |
59.9
|
%
|
| | | | | | | | | | | | |
|
| | | | Three months ended March 31, | | | Six months ended March 31, |
| | | | 2013 | | | 2012 | | | 2013 | | | 2012 |
|
Reconciliation from GAAP research and development to non-GAAP
research and development:
| | | | | | | | | | | | | |
|
GAAP research and development:
| | | |
$
|
4,483
| | | |
$
|
4,817
| | | |
$
|
8,602
| | | |
$
|
8,990
| |
|
Reversal of non-GAAP expenses:
| | | | | | | | | | | | | |
|
Stock-based compensation (a)
| | | | |
(98
|
)
| | | |
(73
|
)
| | | |
(152
|
)
| | | |
(170
|
)
|
|
LeapFrogRx compensation charges (c)
| | | |
|
(4
|
)
| | |
|
(34
|
)
| | |
|
(31
|
)
| | |
|
(34
|
)
|
|
Non-GAAP research and development
| | | |
$
|
4,381
|
| | |
$
|
4,710
|
| | |
$
|
8,419
|
| | |
$
|
8,786
|
|
| | | | | | | | | | | | |
|
| | | | Three months ended March 31, | | | Six months ended March 31, |
| | | | 2013 | | | 2012 | | | 2013 | | | 2012 |
|
Reconciliation from GAAP sales and marketing to non-GAAP sales and
marketing:
| | | | | | | | | | | | | |
|
GAAP sales and marketing:
| | | |
$
|
5,770
| | | |
$
|
5,705
| | | |
$
|
11,106
| | | |
$
|
9,686
| |
|
Reversal of non-GAAP expenses:
| | | | | | | | | | | | | |
|
Stock-based compensation (a)
| | | | |
(454
|
)
| | | |
(529
|
)
| | | |
(713
|
)
| | | |
(774
|
)
|
|
Amortization of intangible assets (b)
| | | | |
(22
|
)
| | | |
(18
|
)
| | | |
(43
|
)
| | | |
(18
|
)
|
|
LeapFrogRx compensation charges (c)
| | | |
|
(4
|
)
| | |
|
(427
|
)
| | |
|
(88
|
)
| | |
|
(427
|
)
|
|
Non-GAAP sales and marketing
| | | |
$
|
5,290
|
| | |
$
|
4,731
|
| | |
$
|
10,262
|
| | |
$
|
8,467
|
|
| | | | | | | | | | | | |
|
| | | | Three months ended March 31, | | | Six months ended March 31, |
| | | | 2013 | | | 2012 | | | 2013 | | | 2012 |
| | | | | | | | | | | | |
|
|
Reconciliation from GAAP general and administrative to non-GAAP
general and administrative:
| | | | | | | | | | | | | |
|
GAAP general and administrative:
| | | |
$
|
3,758
| | | |
$
|
2,773
| | | |
$
|
7,635
| | | |
$
|
5,166
| |
|
Reversal of non-GAAP expenses:
| | | | | | | | | | | | | |
|
Stock-based compensation (a)
| | | | |
(186
|
)
| | | |
(47
|
)
| | | |
(316
|
)
| | | |
(112
|
)
|
|
LeapFrogRx compensation charges (c)
| | | |
|
(1
|
)
| | |
|
(236
|
)
| | |
|
(38
|
)
| | |
|
(236
|
)
|
|
Non-GAAP general and administrative
| | | |
$
|
3,571
|
| | |
$
|
2,490
|
| | |
$
|
7,281
|
| | |
$
|
4,818
|
|
| | | | | | | | | | | | |
|
| | | | Three months ended March 31, | | | Six months ended March 31, |
| | | | 2013 | | | 2012 | | | 2013 | | | 2012 |
|
Reconciliation from GAAP operating loss to non-GAAP operating income
(loss):
| | | | | | | | | | | | | |
|
GAAP operating loss:
| | | |
$
|
(1,033
|
)
| | |
$
|
(3,738
|
)
| | |
$
|
(2,107
|
)
| | |
$
|
(3,752
|
)
|
|
Reversal of non-GAAP expenses:
| | | | | | | | | | | | | |
|
Stock-based compensation (a)
| | | | |
942
| | | | |
1,086
| | | | |
1,499
| | | | |
1,594
| |
|
Amortization of intangible assets (b)
| | | | |
83
| | | | |
68
| | | | |
164
| | | | |
68
| |
|
LeapFrogRx compensation charges (c)
| | | |
|
25
|
| | |
|
1,789
|
| | |
|
414
|
| | |
|
1,789
|
|
|
Non-GAAP operating income (loss)
| | | |
$
|
17
|
| | |
$
|
(795
|
)
| | |
$
|
(30
|
)
| | |
$
|
(301
|
)
|
| | | | | | | | | | | | |
|
| | | | Three months ended March 31, | | | Six months ended March 31, |
| | | | 2013 | | | 2012 | | | 2013 | | | 2012 |
| Numerator: | | | | | | | | | | | | | |
|
Reconciliation between GAAP and non-GAAP net loss:
| | | | | | | | | | | | | |
|
GAAP net loss:
| | | |
$
|
(1,896
|
)
| | |
$
|
(4,155
|
)
| | |
$
|
(3,209
|
)
| | |
$
|
(4,830
|
)
|
|
Reversal of non-GAAP expenses:
| | | | | | | | | | | | | |
|
Stock-based compensation (a)
| | | | |
942
| | | | |
1,086
| | | | |
1,499
| | | | |
1,594
| |
|
Changes in fair value of preferred stock warrant liability (d)
| | | | |
685
| | | | |
127
| | | | |
671
| | | | |
443
| |
|
Amortization of intangible assets (b)
| | | | |
83
| | | | |
68
| | | | |
164
| | | | |
68
| |
|
LeapFrogRx compensation charges (c)
| | | |
|
25
|
| | |
|
1,789
|
| | |
|
414
|
| | |
|
1,789
|
|
|
Non-GAAP net loss attributable to Model N Inc. common stockholders
| | | |
$
|
(161
|
)
| | |
$
|
(1,085
|
)
| | |
$
|
(461
|
)
| | |
$
|
(936
|
)
|
| Denominator: | | | | | | | | | | | | | |
Reconciliation between GAAP and non-GAAP weighted average shares
used in computing diluted net loss per common share:
| | | | | | | | | | | | | |
|
Weighted average number of shares used in computing net loss per
common share
| | | | |
10,137
| | | | |
7,731
| | | | |
9,071
| | | | |
7,677
| |
|
Assuming the conversion of preferred stock at the beginning of each
period
| | | |
|
6,284
|
| | |
|
7,250
|
| | |
|
6,772
|
| | |
|
7,250
|
|
Non-GAAP weighted average shares used in computing non-GAAP net
loss per common share
| | | |
|
16,421
|
| | |
|
14,981
|
| | |
|
15,843
|
| | |
|
14,927
|
|
|
GAAP net loss per share attributable to Model N Inc. common
stockholders
| | | |
$
|
(0.19
|
)
| | |
$
|
(0.54
|
)
| | |
$
|
(0.35
|
)
| | |
$
|
(0.63
|
)
|
|
Non-GAAP net loss per share attributable to Model N Inc. common
stockholders
| | | |
$
|
(0.01
|
)
| | |
$
|
(0.07
|
)
| | |
$
|
(0.03
|
)
| | |
$
|
(0.06
|
)
|
| | | | | | | | | | | | |
|
Use of Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements presented
on a GAAP basis, Model N uses non-GAAP measures of adjusted EBITDA, net
loss, weighted average shares outstanding and net loss per share, which
are adjusted to exclude LeapFrogRx compensation charges, stock-based
compensation expense, amortization of intangible assets and changes in
fair value of preferred stock warrant liability and includes dilutive
shares where applicable. We believe these adjustments are appropriate to
enhance an overall understanding of our past financial performance and
also our prospects for the future. These adjustments to our current
period GAAP results are made with the intent of providing both
management and investors a more complete understanding of Model N’s
underlying operating results and trends and our marketplace performance.
The non-GAAP results are an indication of our baseline performance that
are considered by management for the purpose of making operational
decisions. In addition, these non-GAAP results are the primary
indicators management uses as a basis for our planning and forecasting
of future periods. The presentation of this additional information is
not meant to be considered in isolation or as a substitute for operating
loss, net loss or basic and diluted net loss per share prepared in
accordance with generally accepted accounting principles in the United
States. Non-GAAP financial measures are not based on a comprehensive set
of accounting rules or principles and are subject to limitations.
While a large component of our expense in certain periods, we believe
investors may want to exclude the effects of these items in order to
compare our financial performance with that of other companies and
between time periods:
(a) Stock-based compensation is a non-cash expense accounted for in
accordance with FASB ASC Topic 718. Share-based compensation expenses
are excluded from our non-GAAP income because share-based compensation
amounts are difficult to forecast due in part to the volume and timing
of stock option and restricted stock grants and the volatility our
common stock. We believe that the exclusion of stock-based compensation
expense provides for a better comparison of our operation results to
prior periods and to our peer companies.
(b) Amortization of intangible assets resulted principally from
acquisitions. Intangible asset amortization is a non-cash item. As such,
we believe exclusion of these expenses provides for a better comparison
of our operation results to prior periods and to our peer companies.
(c) In January 2012, we acquired LeapFrog Rx for initial cash
consideration of $3.0 million as well as potential additional payments
to former LeapFrogRx shareholders totaling up to $8.3 million which are
expected to be incurred through January 2015. These additional payments
are, among other things, subject to future continued employment and are
therefore considered compensatory in nature and are being recognized as
compensation expense (LeapFrogRx compensation charges) over the term of
each component. We believe that the exclusion of these expenses provides
for a better comparison of our operation results to prior periods and to
our peer companies.
(d) Preferred stock warrant was classified as liability and was marked
to market in each period until the preferred stock warrant was converted
to common stock warrant upon the closing date of IPO. The change in fair
value of preferred stock warrant liability was a non-cash item. We
believe that the exclusion of this expense provides for a better
comparison of our operation results to prior periods and to our peer
companies.
Investor Relations Contact:
ICR for Model N
Greg
Kleiner, 650-610-4998
investorrelations@modeln.com
or
Media
Contact:
Model N
Kristin Lee, 650-610-4717
Marketing
klee@modeln.com
Source: Model N, Inc.