REDWOOD CITY, Calif.--(BUSINESS WIRE)--
Model N, Inc., (NYSE: MODN), the leading provider of cloud-based Revenue
Management solutions to life science, technology and manufacturing
companies, today announced financial results for the fourth quarter and
full fiscal year 2015, which ended September 30, 2015.
“Model N ended a strong fiscal year 2015 with a strong Q4. We grew both
sequentially and year over year in every quarter of the fiscal year
while concurrently transforming our business model to SaaS and recurring
revenues. Model N grew fourth quarter total revenue 25% and SaaS and
Maintenance revenue 37% versus Q4 fiscal year 2014 and reported 67% of
total revenues as SaaS and Maintenance revenues,” said Zack Rinat,
Founder, Chairman, and Chief Executive Officer at Model N. “Our results
are a strong testament to the Model N vision of revenue management, the
robust market for revenue management, and our strategy to concurrently
drive growth and to transform our business to SaaS and recurring
revenues. We are excited about accelerating our strategy in fiscal year
2016 and beyond.”
Fourth Quarter Fiscal 2015 Financial Highlights:
- Revenues: Total revenues were $25.4 million, compared to $20.3
million for the fourth quarter of fiscal 2014. SaaS and maintenance
revenues were $17.0 million, or 67% of total revenues, compared to
$12.4 million, or 61% of total revenues, in the fourth quarter of
fiscal 2014.
- Gross Profit: Gross profit was $13.8 million, compared to $11.4
million for the fourth quarter of fiscal 2014. Gross margins were 55%,
compared to 56% for the fourth quarter of fiscal 2014. Non-GAAP gross
profit was $14.3 million, compared to $11.8 million for the fourth
quarter of fiscal 2014. Non-GAAP gross margins were 56%, compared to
58% for the fourth quarter of fiscal 2014.
- Loss from operations: GAAP loss from operations was $(4.9)
million, compared to a loss from operations of $(5.8) million for the
fourth quarter of fiscal 2014. Non-GAAP loss from operations was
$(1.7) million, compared to a Non-GAAP loss from operations of $(3.1)
million for the fourth quarter of fiscal 2014.
- Net loss: GAAP net loss was $(5.0) million, compared to net
loss of $(5.9) million for the fourth quarter of fiscal 2014. GAAP
basic and diluted net loss per share attributed to common stockholders
was $(0.19) based upon weighted average shares outstanding of 26.5
million, as compared to net loss per share of $(0.24) for the fourth
quarter of fiscal 2014 based upon weighted average shares outstanding
of 24.9 million.
- Non-GAAP net loss: Non-GAAP net loss was $(1.8) million, as
compared to Non-GAAP net loss of $(3.3) million for the fourth quarter
of fiscal 2014. Non-GAAP net loss per share was $(0.07) based upon
weighted average shares outstanding of 26.5 million, as compared to
Non-GAAP net loss per share of $(0.13) for the fourth quarter of
fiscal 2014 based upon weighted average shares outstanding of 24.9
million.
- Adjusted EBITDA: Adjusted EBITDA was $(0.7) million, compared
to $(2.3) million for the fourth quarter of fiscal 2014.
Fiscal Year 2015 Financial Highlights:
- Total Revenues: Total revenues were $93.8 million for fiscal
2015, compared to $81.8 million for fiscal 2014.
- Gross Profit: Gross profit was $52.2 million for fiscal 2015,
compared to $44.0 million for fiscal 2014. Gross margins were 56%,
compared to 54% for fiscal 2014. Non-GAAP gross profit was $54.0
million, compared to $46.2 million for fiscal 2014. Non-GAAP gross
margins were 58%, compared to 57% in fiscal 2014.
- Loss from operations: GAAP loss from operations was ($19.1)
million for fiscal 2015, compared to a loss from operations of ($20.4)
million for fiscal 2014. Non-GAAP loss from operations was ($7.1)
million for fiscal 2015, compared to a loss from operations of ($9.6)
million for fiscal 2014.
- Net loss: GAAP net loss was ($19.6) million for fiscal 2015,
compared to a GAAP net loss of ($20.9) million for fiscal 2014. GAAP
net loss per share was ($0.76) for fiscal 2015 based upon weighted
average shares outstanding of 26.0 million, as compared to a GAAP net
loss per share of ($0.86) for fiscal 2014 based upon weighted average
shares outstanding of 24.4 million.
- Non-GAAP net loss: Non-GAAP net loss was ($7.6) million for
fiscal 2015, as compared to a Non-GAAP net loss of ($10.1) million for
fiscal 2014. Non-GAAP net loss per share was ($0.30) for fiscal 2015
based upon weighted average shares outstanding of 26.0 million, as
compared to a Non-GAAP diluted net loss per share of ($0.41) for
fiscal 2014 based upon weighted average shares outstanding of 24.4
million.
- Adjusted EBITDA: Adjusted EBITDA was ($3.3) million for fiscal
2015, compared to ($6.2) million for fiscal 2014.
Use of Non-GAAP Financial Measures
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 9, 2015, we are providing guidance for the first quarter
of fiscal 2016 and the full fiscal year ending September 30, 2016.
Fiscal Year 2016 Guidance:
-
Total revenues are expected to be in the range from $106.0 million to
$107.0 million. This includes approximately $7.0 million of revenue
from Channelinsight. This represents 13 to 14% year over year growth.
-
Non-GAAP loss from operations is expected to be in the range of
($17.8) million to ($17.3) million.
-
Non-GAAP net loss per share is expected to be in the range of ($0.66)
to ($0.64) based upon weighted average shares outstanding of 27.1
million shares.
-
SaaS ARR is expected to range from $34.0 to $35.0 million, an increase
of 75% to 80% over fiscal year 2015.
-
The revenue coverage for fiscal year 2016 is approximately 75%. This
includes deferred revenue plus booked, but not invoiced, revenue we
expect to recognize in FY 2016, the total of which we call backlog.
-
We expect our ending cash balance at September 30, 2016 to be between
$70 and $72 million. This includes cash utilized in the acquisition of
Channelinsight.
First Quarter Fiscal 2016 Guidance:
-
Total revenues are expected to be in the range from $24.0 million to
$24.2 million.
-
Non-GAAP loss from operations is expected to be in the range of ($4.8)
million to ($4.6) million.
-
Non-GAAP net loss per share is expected to be in the range of ($0.18)
to ($0.17) based upon weighted average shares outstanding of 26.8
million shares.
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 full fiscal year 2015, which ended September 30,
2015. To access the call, please dial (877) 705-6003 in the U.S. or
(201) 493-6725 internationally. Passcode is 13622017. 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, a recording will be available for
one year for replay at: http://investor.modeln.com
and a telephone replay will be available through 11:59 p.m. ET on
November 16, 2015 by dialing (877) 870-5176 in the U.S. or (858)
384-5517 internationally with recording access code 13622017.
About Model N
Model N is the leader in Revenue Management Cloud solutions for life
science, technology and manufacturing companies. Driving mission
critical business processes such as configure, price and quote (CPQ),
rebates and regulatory compliance, Model N Cloud solutions transform the
revenue lifecycle from a series of disjointed operations into a
strategic end-to-end process. With deep industry expertise, Model N
supports the unique business needs of the world's leading brands in life
science, technology and manufacturing across more than 100 countries.
Model N is a trusted partner to some of the world’s largest brands,
including Johnson & Johnson, AstraZeneca, Boston Scientific, Novartis,
Ortho Clinical Diagnostics, Atmel, Fairchild and Marvell. Learn more at: http://www.modeln.com.
Model N trades 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 first quarter and full year
fiscal year 2016 revenue and other financial results. 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;
(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; and
(xi) 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, 2014, 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 loss from operations, non-GAAP
net loss, non-GAAP net (loss) income per share, and adjusted EBITDA.
Non-GAAP gross profit excludes stock-based compensation expense,
LeapFrogRX compensation charges and amortization of intangible assets.
Non-GAAP loss from operations and non-GAAP net loss exclude stock-based
compensation expense, LeapFrogRX compensation charges, amortization of
intangible assets, certain legal expenses and restructuring charges 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 loss, adjusted for LeapFrogRX compensation charges, depreciation and
amortization, stock-based compensation expense, certain legal expenses,
restructuring charges, interest income and other expenses, net, and
provision for income taxes. Reconciliation tables are provided in this
press release.
|
|
|
|
| |
| | |
Model N Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited) |
| | | | | | | |
|
| | | | | As of | | As of | |
| | | | | September 30, | | September 30, | |
| | | | | 2015 | |
| | 2014 | |
| Assets | | | | | | | | | | | | |
|
Current assets:
| | | | | | | | | | | | |
|
Cash and cash equivalents
| | | | |
$
|
91,019
| | | |
$
|
101,006
| |
|
Accounts receivable, net
| | | | | |
16,106
| | | | |
15,203
| |
|
Deferred cost of implementation services, current portion
| | | | | |
498
| | | | |
251
| |
|
Prepaid expenses
| | | | | |
3,229
| | | | |
2,092
| |
|
Other current assets
| | | | |
|
109
| | | |
|
322
| |
|
Total current assets
| | | | | |
110,961
| | | | |
118,874
| |
|
Property and equipment, net
| | | | | |
7,553
| | | | |
6,889
| |
| Goodwill | | | | | |
1,509
| | | | |
1,509
| |
|
Intangible assets, net
| | | | | |
317
| | | | |
587
| |
|
Other assets
| | | | |
|
1,630
| | | |
|
1,272
| |
|
Total assets
| | | | |
$
|
121,970
| | | |
$
|
129,131
| |
| Liabilities and Stockholders’ Equity | | | | | | | | | | | | |
|
Current liabilities:
| | | | | | | | | | | | |
|
Accounts payable
| | | | |
$
|
1,597
| | | |
$
|
1,369
| |
|
Accrued employee compensation
| | | | | |
9,047
| | | | |
9,194
| |
|
Accrued liabilities
| | | | | |
3,464
| | | | |
1,998
| |
|
Deferred revenue, current portion
| | | | |
|
22,039
| | | |
|
23,943
| |
|
Total current liabilities
| | | | | |
36,147
| | | | |
36,504
| |
|
Long-term liabilities:
| | | | | | | | | | | | |
|
Deferred revenue, net of current portion
| | | | | |
1,942
| | | | |
2,585
| |
|
Other long-term liabilities
| | | | |
|
819
| | | |
|
1,078
| |
|
Total long-term liabilities
| | | | |
|
2,761
| | | |
|
3,663
| |
|
Total liabilities
| | | | |
|
38,908
| | | |
|
40,167
| |
|
Stockholders’ equity:
| | | | | | | | | | | | |
|
Common Stock
| | | | | |
4
| | | | |
4
| |
|
Preferred Stock
| | | | | |
—
| | | | |
—
| |
|
Additional paid-in capital
| | | | | |
186,159
| | | | |
172,245
| |
|
Accumulated other comprehensive loss
| | | | | |
(466
|
)
| | | |
(289
|
)
|
|
Accumulated deficit
| | | | |
|
(102,635
|
)
| | |
|
(82,996
|
)
|
|
Total stockholders’ equity
| | | | |
|
83,062
| | | |
|
88,964
| |
|
Total liabilities and stockholders’ equity
| | | | |
$
|
121,970
| | | |
$
|
129,131
| |
| | | | | | | | | | | |
|
|
|
|
|
| | |
|
|
| | |
Model N Inc. Condensed Consolidated Statements of Operations (in thousands, except per share amounts) (unaudited) |
| | | | | | | | | | |
|
| | | | | Three months ended September 30, | | | | | Fiscal Years Ended September 30, | |
| | | | | 2015 | |
| 2014 | | | | | 2015 | |
| 2014 | |
|
Revenues:
| | | | | |
| | | | |
| | | | | | |
| | | | |
| | |
|
License and implementation
| | | | |
$
| |
8,391
| | |
$
| |
7,884
| | | | |
$
| |
36,172
| | |
$
| |
35,333
| |
|
SaaS and maintenance
| | | | |
|
|
16,990
| | |
|
|
12,394
| | | | |
|
|
57,596
| | |
|
|
46,423
| |
|
Total revenues
| | | | | | |
25,381
| | | | |
20,278
| | | | | | |
93,768
| | | | |
81,756
| |
|
Cost of Revenues:
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
License and implementation
| | | | | | |
3,749
| | | | |
3,697
| | | | | | |
15,555
| | | | |
16,652
| |
|
SaaS and maintenance
| | | | |
|
|
7,786
| | |
|
|
5,175
| | | | |
|
|
26,014
| | |
|
|
21,092
| |
|
Total cost of revenues
| | | | |
|
|
11,535
| | |
|
|
8,872
| | | | |
|
|
41,569
| | |
|
|
37,744
| |
|
Gross profit
| | | | | | |
13,846
| | | | |
11,406
| | | | | | |
52,199
| | | | |
44,012
| |
|
Operating Expenses:
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
Research and development
| | | | | | |
4,728
| | | | |
4,348
| | | | | | |
17,906
| | | | |
18,710
| |
|
Sales and marketing
| | | | | | |
8,046
| | | | |
7,705
| | | | | | |
30,300
| | | | |
25,998
| |
|
General and administrative
| | | | | | |
5,987
| | | | |
5,153
| | | | | | |
23,132
| | | | |
19,671
| |
|
Restructuring
| | | | |
|
|
—
| | |
|
|
—
| | | | |
|
|
—
| | |
|
|
26
| |
|
Total operating expenses
| | | | |
|
|
18,761
| | |
|
|
17,206
| | | | |
|
|
71,338
| | |
|
|
64,405
| |
|
Loss from operations
| | | | | | |
(4,915
|
)
| | | |
(5,800
|
)
| | | | | |
(19,139
|
)
| | | |
(20,393
|
)
|
|
Interest income, net
| | | | | | |
—
| | | | |
(2
|
)
| | | | | |
(6
|
)
| | | |
(12
|
)
|
|
Other (income) expenses, net
| | | | |
|
|
(81
|
)
| |
|
|
5
| | | | |
|
|
(22
|
)
| |
|
|
116
| |
|
Loss before income taxes
| | | | | | |
(4,834
|
)
| | | |
(5,803
|
)
| | | | | |
(19,111
|
)
| | | |
(20,497
|
)
|
|
Provision for income taxes
| | | | |
|
|
121
| | |
|
|
123
| | | | |
|
|
528
| | |
|
|
384
| |
|
Net loss
| | | | |
$
|
|
(4,955
|
)
| |
$
|
|
(5,926
|
)
| | | |
$
|
|
(19,639
|
)
| |
$
|
|
(20,881
|
)
|
|
Net loss per share attributable to common stockholders:
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
Basic and diluted
| | | | |
$
|
|
(0.19
|
)
| |
$
|
|
(0.24
|
)
| | | |
$
|
|
(0.76
|
)
| |
$
|
|
(0.86
|
)
|
|
Weighted average number of shares used in computing net loss per
share attributable to common stockholders:
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
Basic and diluted
| | | | |
|
|
26,544
| | |
|
|
24,949
| | | | |
|
|
26,015
| | |
|
|
24,399
| |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
**Amounts may not add due to rounding.
|
|
|
|
| | |
Model N Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) |
| | | | | |
|
| | | | | Fiscal Years Ended September 30, | |
| | | | | 2015 | |
|
| 2014 | |
|
Cash Flows From Operating Activities:
| | | | | | | | | | | | |
|
Net loss
| | | | |
$
|
(19,639
|
)
| | |
$
|
(20,881
|
)
|
|
Adjustments to reconcile net loss to net cash used in operating
activities
| | | | | | | | | | | | |
|
Depreciation and amortization
| | | | | |
4,076
| | | | |
3,716
| |
|
Stock-based compensation
| | | | | |
10,355
| | | | |
9,949
| |
|
Other non cash charges, net
| | | | | |
227
| | | | |
83
| |
|
Changes in assets and liabilities:
| | | | | | | | | | | | |
|
Accounts receivable
| | | | | |
(925
|
)
| | | |
983
| |
|
Prepaid expenses and other assets
| | | | | |
(1,218
|
)
| | | |
407
| |
|
Deferred cost of implementation services
| | | | | |
(518
|
)
| | | |
242
| |
|
Accounts payable
| | | | | |
457
| | | | |
685
| |
|
Accrued employee compensation
| | | | | |
(16
|
)
| | | |
(4,624
|
)
|
|
Other accrued and long-term liabilities
| | | | | |
976
| | | | |
(500
|
)
|
|
Deferred revenue
| | | | |
|
(2,547
|
)
| | |
|
3,890
| |
|
Net cash used in operating activities
| | | | |
|
(8,772
|
)
| | |
|
(6,050
|
)
|
|
Cash Flows From Investing Activities:
| | | | | | | | | | | | |
|
Purchases of property and equipment, net
| | | | | |
(2,075
|
)
| | | |
(1,835
|
)
|
|
Capitalization of software development costs
| | | | |
|
(2,531
|
)
| | |
|
(381
|
)
|
|
Net cash used in investing activities
| | | | |
|
(4,606
|
)
| | |
|
(2,216
|
)
|
|
Cash Flows From Financing Activities:
| | | | | | | | | | | | |
|
Proceeds from exercise of stock options and employee stock purchase
plan
| | | | | |
3,450
| | | | |
6,238
| |
|
Payments for deferred offering costs
| | | | | |
—
| | | | |
(6
|
)
|
|
Principal payments on capital lease obligations
| | | | |
|
—
| | | |
|
(318
|
)
|
|
Net cash provided by financing activities
| | | | |
|
3,450
| | | |
|
5,914
| |
|
Effect of exchange rate changes on cash and cash equivalents
| | | | | |
(59
|
)
| | | |
8
| |
|
Net decrease in cash and cash equivalents
| | | | | |
(9,987
|
)
| | | |
(2,344
|
)
|
|
Cash and cash equivalents
| | | | | | | | | | | | |
|
Beginning of period
| | | | |
|
101,006
| | | |
|
103,350
| |
|
End of period
| | | | |
$
|
91,019
| | | |
$
|
101,006
| |
| | | | | | | | | | | |
|
|
|
|
|
| | |
|
|
| | |
Model N Inc. Reconciliation of GAAP to Non-GAAP Operating Results (in thousands, except per share amounts) (unaudited) |
| | | | | | | | | | |
|
| | | | | Three months ended September 30, | | | | | Fiscal Years Ended September 30, | |
| | | | | 2015 | |
| 2014 | | | | | 2015 | |
| 2014 | |
|
Reconciliation from GAAP net loss to adjusted EBITDA:
| | | | | |
| | | | |
| | | | | | |
| | | | |
| | |
|
GAAP net loss:
| | | | |
$
| |
(4,955
|
)
| |
$
| |
(5,926
|
)
| | | |
$
| |
(19,639
|
)
| |
$
| |
(20,881
|
)
|
|
Reversal of non-GAAP items:
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
Stock-based compensation expense
| | | | | | |
2,943
| | | | |
2,499
| | | | | | |
10,355
| | | | |
9,949
| |
|
Depreciation and amortization
| | | | | | |
1,080
| | | | |
925
| | | | | | |
4,076
| | | | |
3,716
| |
|
LeapFrogRx compensation charges
| | | | | | |
—
| | | | |
80
| | | | | | |
91
| | | | |
461
| |
|
Legal expenses
| | | | | | |
190
| | | | |
—
| | | | | | |
1,285
| | | | |
—
| |
|
Restructuring
| | | | | | |
—
| | | | |
—
| | | | | | |
—
| | | | |
26
| |
|
Interest income, net
| | | | | | |
—
| | | | |
(2
|
)
| | | | | |
(6
|
)
| | | |
(12
|
)
|
|
Other (income) expenses, net
| | | | | | |
(81
|
)
| | | |
5
| | | | | | |
(22
|
)
| | | |
116
| |
|
Provision for income taxes
| | | | |
|
|
121
| | |
|
|
123
| | | | |
|
|
528
| | |
|
|
384
| |
|
Adjusted EBITDA
| | | | |
$
|
|
(702
|
)
| |
$
|
|
(2,296
|
)
| | | |
$
|
|
(3,332
|
)
| |
$
|
|
(6,241
|
)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | Three months ended September 30, | | | | | Fiscal Years Ended September 30, | |
| | | | | 2015 | | | 2014 | | | | | 2015 | | | 2014 | |
|
Reconciliation from GAAP gross profit to non-GAAP gross profit:
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
GAAP gross profit:
| | | | |
$
| |
13,846
| | |
$
| |
11,406
| | | | |
$
| |
52,199
| | |
$
| |
44,012
| |
|
Reversal of non-GAAP expenses:
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
Stock-based compensation (a)
| | | | | | |
420
| | | | |
326
| | | | | | |
1,497
| | | | |
1,654
| |
|
Amortization of intangible assets (b)
| | | | | | |
61
| | | | |
61
| | | | | | |
244
| | | | |
243
| |
|
LeapFrogRx compensation charges (c)
| | | | |
|
|
—
| | |
|
|
50
| | | | |
|
|
57
| | |
|
|
288
| |
|
Non-GAAP gross profit
| | | | |
$
|
|
14,327
| | |
$
|
|
11,843
| | | | |
$
|
|
53,997
| | |
$
|
|
46,197
| |
|
Percentage of revenue
| | | | | | |
56.4
|
%
| | | |
58.4
|
%
| | | | | |
57.6
|
%
| | | |
56.5
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
|
|
| | |
|
|
| | |
| | | | | Three months ended September 30, | | | | | Fiscal Years Ended September 30, | |
| | | | | 2015 | |
| 2014 | | | | | 2015 | |
| 2014 | |
|
Reconciliation from GAAP gross profit to non-GAAP gross profit:
| | | | | |
| | | | |
| | | | | | |
| | | | |
| | |
|
for license and implementation:
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
GAAP gross profit - license and implementation:
| | | | |
$
| |
4,642
| | |
$
| |
4,187
| | | | |
$
| |
20,617
| | |
$
| |
18,681
| |
|
Reversal of non-GAAP expenses:
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
Stock-based compensation (a)
| | | | |
|
|
206
| | |
|
|
153
| | | | |
|
|
699
| | |
|
|
905
| |
|
Non-GAAP gross profit - license and implementation
| | | | |
$
|
|
4,848
| | |
$
|
|
4,340
| | | | |
$
|
|
21,316
| | |
$
|
|
19,586
| |
|
Percentage of revenue
| | | | | | |
57.8
|
%
| | | |
55.0
|
%
| | | | | |
58.9
|
%
| | | |
55.4
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | Three months ended September 30, | | | | | Fiscal Years Ended September 30, | |
| | | | | 2015 | | | 2014 | | | | | 2015 | | | 2014 | |
|
Reconciliation from GAAP gross profit to non-GAAP gross profit:
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
for SaaS and maintenance:
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
GAAP gross profit - SaaS and maintenance:
| | | | |
$
| |
9,204
| | |
$
| |
7,219
| | | | |
$
| |
31,582
| | |
$
| |
25,331
| |
|
Reversal of non-GAAP expenses:
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
Stock-based compensation (a)
| | | | | | |
214
| | | | |
173
| | | | | | |
798
| | | | |
749
| |
|
Amortization of intangible assets (b)
| | | | | | |
61
| | | | |
61
| | | | | | |
244
| | | | |
243
| |
|
LeapFrogRx compensation charges (c)
| | | | |
|
|
—
| | |
|
|
50
| | | | |
|
|
57
| | |
|
|
288
| |
|
Non-GAAP gross profit - SaaS and maintenance
| | | | |
$
|
|
9,479
| | |
$
|
|
7,503
| | | | |
$
|
|
32,681
| | |
$
|
|
26,611
| |
|
Percentage of revenue
| | | | | | |
55.8
|
%
| | | |
60.5
|
%
| | | | | |
56.7
|
%
| | | |
57.3
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
|
|
| | |
|
|
| | |
| | | | | Three months ended September 30, | | | | | Fiscal Years Ended September 30, | |
| | | | | 2015 | |
| 2014 | | | | | 2015 | |
| 2014 | |
|
Reconciliation from GAAP research and development to non-GAAP
research and development:
| | | | | |
| | | | |
| | | | | | |
| | | | |
| | |
|
GAAP research and development
| | | | |
$
| |
4,728
| | |
$
| |
4,348
| | | | |
$
| |
17,906
| | |
$
| |
18,710
| |
|
Reversal of non-GAAP expenses:
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
Stock-based compensation (a)
| | | | | | |
(405
|
)
| | | |
(306
|
)
| | | | | |
(1,352
|
)
| | | |
(1,278
|
)
|
|
LeapFrogRx compensation charges (c)
| | | | |
|
|
—
| | |
|
|
(1
|
)
| | | |
|
|
(1
|
)
| |
|
|
(11
|
)
|
|
Non-GAAP research and development
| | | | |
$
|
|
4,323
| | |
$
|
|
4,041
| | | | |
$
|
|
16,553
| | |
$
|
|
17,421
| |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | Three months ended September 30, | | | | | Fiscal Years Ended September 30, | |
| | | | | 2015 | | | 2014 | | | | | 2015 | | | 2014 | |
|
Reconciliation from GAAP sales and marketing to non-GAAP sales and
marketing:
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
GAAP sales and marketing
| | | | |
$
| |
8,046
| | |
$
| |
7,705
| | | | |
$
| |
30,300
| | |
$
| |
25,998
| |
|
Reversal of non-GAAP expenses:
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
Stock-based compensation (a)
| | | | | | |
(930
|
)
| | | |
(858
|
)
| | | | | |
(3,203
|
)
| | | |
(2,789
|
)
|
|
Amortization of intangible assets (b)
| | | | | | |
—
| | | | |
(22
|
)
| | | | | |
(26
|
)
| | | |
(88
|
)
|
|
LeapFrogRx compensation charges (c)
| | | | |
|
|
—
| | |
|
|
(11
|
)
| | | |
|
|
(13
|
)
| |
|
|
(76
|
)
|
|
Non-GAAP sales and marketing
| | | | |
$
|
|
7,116
| | |
$
|
|
6,814
| | | | |
$
|
|
27,058
| | |
$
|
|
23,045
| |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
|
|
| | |
|
|
| | |
| | | | | Three months ended September 30, | | | | | Fiscal Years Ended September 30, | |
| | | | | 2015 | |
| 2014 | | | | | 2015 | |
| 2014 | |
|
Reconciliation from GAAP general and administrative to non-GAAP
general and administrative:
| | | | | |
| | | | |
| | | | | | |
| | | | |
| | |
|
GAAP general and administrative
| | | | |
$
| |
5,987
| | |
$
| |
5,153
| | | | |
$
| |
23,132
| | |
$
| |
19,671
| |
|
Reversal of non-GAAP expenses:
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
Stock-based compensation (a)
| | | | | | |
(1,188
|
)
| | | |
(1,009
|
)
| | | | | |
(4,303
|
)
| | | |
(4,228
|
)
|
|
LeapFrogRx compensation charges (c)
| | | | | | |
—
| | | | |
(18
|
)
| | | | | |
(20
|
)
| | | |
(86
|
)
|
|
Legal expenses (e )
| | | | |
|
|
(190
|
)
| |
|
|
—
| | | | |
|
|
(1,285
|
)
| |
|
|
—
| |
|
Non-GAAP general and administrative
| | | | |
$
|
|
4,609
| | |
$
|
|
4,126
| | | | |
$
|
|
17,524
| | |
$
|
|
15,357
| |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | Three months ended September 30, | | | | | Fiscal Years Ended September 30, | |
| | | | | 2015 | | | 2014 | | | | | 2015 | | | 2014 | |
|
Reconciliation from GAAP loss from operations to non-GAAP loss from
operations:
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
GAAP net loss from operations:
| | | | |
$
| |
(4,915
|
)
| |
$
| |
(5,800
|
)
| | | |
$
| |
(19,139
|
)
| |
$
| |
(20,393
|
)
|
|
Reversal of non-GAAP expenses:
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
Stock-based compensation (a)
| | | | | | |
2,943
| | | | |
2,499
| | | | | | |
10,355
| | | | |
9,949
| |
|
Amortization of intangible assets (b)
| | | | | | |
61
| | | | |
83
| | | | | | |
270
| | | | |
331
| |
|
LeapFrogRx compensation charges (c)
| | | | | | |
—
| | | | |
80
| | | | | | |
91
| | | | |
461
| |
|
Restructuring (d)
| | | | | | |
—
| | | | |
—
| | | | | | |
—
| | | | |
26
| |
|
Legal expenses ( e)
| | | | |
|
|
190
| | |
|
|
—
| | | | |
|
|
1,285
| | |
|
|
—
| |
|
Non-GAAP loss from operations
| | | | |
$
|
|
(1,721
|
)
| |
$
|
|
(3,138
|
)
| | | |
$
|
|
(7,138
|
)
| |
$
|
|
(9,626
|
)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
|
|
| | |
|
|
| | |
| | | | | Three months ended September 30, | | | | | Fiscal Years Ended September 30, | |
| | | | | 2015 | |
| 2014 | | | | | 2015 | |
| 2014 | |
| Numerator: | | | | | |
| | | | |
| | | | | | |
| | | | |
| | |
|
Reconciliation between GAAP and non-GAAP net loss:
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
GAAP net loss:
| | | | |
$
| |
(4,955
|
)
| |
$
| |
(5,926
|
)
| | | |
$
| |
(19,639
|
)
| |
$
| |
(20,881
|
)
|
|
Reversal of non-GAAP expenses:
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
Stock-based compensation (a)
| | | | | | |
2,943
| | | | |
2,499
| | | | | | |
10,355
| | | | |
9,949
| |
|
Amortization of intangible assets (b)
| | | | | | |
61
| | | | |
83
| | | | | | |
270
| | | | |
331
| |
|
LeapFrogRx compensation charges (c)
| | | | | | |
—
| | | | |
80
| | | | | | |
91
| | | | |
461
| |
|
Restructuring (d)
| | | | | | |
—
| | | | |
—
| | | | | | |
—
| | | | |
26
| |
|
Legal expenses ( e)
| | | | |
|
|
190
| | |
|
|
—
| | | | |
|
|
1,285
| | |
|
|
—
| |
|
Non-GAAP net loss attributable to Model N Inc. common stockholders
| | | | |
$
|
|
(1,761
|
)
| |
$
|
|
(3,264
|
)
| | | |
$
|
|
(7,638
|
)
| |
$
|
|
(10,114
|
)
|
| Denominator: | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Reconciliation between GAAP and non-GAAP weighted average shares
used in computing diluted net loss per share attributable to Model N
Inc. common stockholders:
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
Weighted average number of shares used in computing GAAP and non-
GAAP diluted net loss per share
| | | | |
|
|
26,544
| | |
|
|
24,949
| | | | |
|
|
26,015
| | |
|
|
24,399
| |
|
GAAP diluted net loss per share attributable to Model N Inc. common
stockholders
| | | | |
$
|
|
(0.19
|
)
| |
$
|
|
(0.24
|
)
| | | |
$
|
|
(0.76
|
)
| |
$
|
|
(0.86
|
)
|
|
Non-GAAP diluted net loss per share attributable to Model N Inc.
common stockholders
| | | | |
$
|
|
(0.07
|
)
| |
$
|
|
(0.13
|
)
| | | |
$
|
|
(0.30
|
)
| |
$
|
|
(0.41
|
)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
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,
gross profit, loss from operations, net loss, weighted average shares
outstanding and net loss per share, which are adjusted to exclude
LeapFrogRx compensation charges, stock-based compensation expense,
restructuring charge and amortization of intangible assets 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. Stock-based compensation expenses
are excluded from our non-GAAP results because stock-based compensation
amounts are difficult to forecast due in part to the volume, timing and
terms of restricted stock grants and the volatility of 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) On September 30, 2013, the Company recorded workforce reduction
restructuring charges primarily related to employee separation packages,
which included severance pay, benefits continuation and outplacement
costs. 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.
(e) Legal expense is for the securities class action lawsuits filed in
September 2014 and January 2015. We believe that the exclusion of these
legal expenses provides for a better comparison of our operation results
to prior periods and to our peer companies.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151109006688/en/
Investor Relations Contact:
ICR for Model N
Sheila
Ennis, 650-610-4998
investorrelations@modeln.com
or
Media
Contact:
Grayling for Model N
Erin Lumley, 925-899-1355
erin.lumley@grayling.com
Source: Model N, Inc.