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As Of Filer Filing For·On·As Docs:Size 8/06/19 Model N, Inc. 8-K:2,5,9 8/06/19 2:530K |
Document/Exhibit Description Pages Size 1: 8-K Current Report HTML 21K 2: EX-99.1 Miscellaneous Exhibit HTML 188K
Exhibit |
• | New
Customer Acquisition Momentum Continues - We had another strong quarter of new customer acquisitions which builds on the strength we saw in the first half of the year. During the quarter, we added new customers whose revenues ranged from approximately $1.0 billion to over $20.0 billion. We continue to believe new customer acquisition will be a growth driver for us. |
• | IDC Names Model N One of Top 10 Software Vendor for Life Sciences - For the second year in a row, IDC named Model N as a top vendor in its worldwide life science software market share rankings, based on life science software license revenue in 2018. |
• | Subscription
Growth Delivers Improved Cash Flow and Stronger Balance Sheet - We continue to strengthen our balance sheet through the combination of non-GAAP profitability, free cash flow generation and debt repayments. Our cash balance at June 30, 2019 was $58.5 million and we repaid another $5 million in debt on July 1, 2019. In total, we have paid down more than 25% of our debt in the last 12 months. |
• | Revenues: Subscription
revenues were $26.6 million compared to $24.9 million for the third quarter of fiscal year 2018. Total revenues were $34.7 million compared to $39.6 million for the third quarter of fiscal year 2018 which reflects the adoption of ASC 606, the increased focus on selling cloud-based software to customers in life sciences and high tech and the expected reduction in professional services for legacy on-premise implementations. |
• | Gross
profit: Gross profit was $18.8 million compared to $23.2 million for the third quarter of fiscal year 2018. Gross margins were 54% compared to 58% for the third quarter of fiscal year 2018. Non-GAAP gross profit was $20.3 million compared to $24.3 million for the third quarter of fiscal year 2018. Non-GAAP gross margins were 58% compared to 62%
for the third quarter of fiscal year 2018. Subscription gross margin for the quarter was 67% compared to 62% for the third quarter of fiscal year 2018. Non-GAAP subscription gross margin for the quarter was 71% compared to 65% for the third quarter of fiscal year 2018 as we drive scale. |
• | Income (loss) from operations: GAAP loss from operations was $(2.1) million
compared to a GAAP loss from operations of $(11.0) million for the third quarter of fiscal year 2018. Non-GAAP income from operations was $3.0 million compared to non-GAAP income from operations of $2.5 million for the third quarter of fiscal year 2018. |
• | Net loss: GAAP net loss was $(3.0) million compared to a net loss of $(15.4) million
for the third quarter of fiscal year 2018. GAAP basic and diluted net loss per share attributable to common stockholders was $(0.09) based upon weighted average shares outstanding of 32.6 million, as compared to net loss per share of $(0.50) for the third quarter of fiscal year 2018 based upon weighted average shares outstanding of 30.7 million. |
• | Non-GAAP net income (loss): Non-GAAP
net income was $2.1 million as compared to non-GAAP net loss of $(2.0) million for the third quarter of fiscal year 2018. Non-GAAP diluted net income per share was $0.06 based upon weighted average diluted shares outstanding of 33.5 million, as compared to non-GAAP diluted net loss per share $(0.07) for the third quarter of fiscal year 2018 based upon weighted average diluted shares outstanding of 30.7 million. |
• | Adjusted
EBITDA: Adjusted EBITDA was $3.3 million compared to $3.1 million for the same period of last fiscal year. |
• | Cash and cash flow: Cash and cash equivalents as of June 30, 2019 totaled $58.5 million. Net cash provided by operating activities was $4.8 million for the nine months of fiscal year 2019, compared with net cash used in operating
activities of $(0.6) million in the prior fiscal year period. Free cash flow generation was $4.6 million for the nine months of fiscal year 2019, compared with free cash flow used of $(0.8) million in the prior fiscal year period. |
(in $ millions, except per share) | Fourth Quarter Fiscal 2019 | Full Year Fiscal 2019 |
Total GAAP Revenues | 35.5 - 35.9 | 140.1
- 140.5 |
Subscription | 26.8 - 27.2 | 104.6 - 105.0 |
Non-GAAP income from operations | 3.2 - 4.2 | 10.2-11.2 |
Non-GAAP net income per share | 0.06 - 0.10 | 0.16 - 0.20 |
Adjusted EBITDA | 3.5 - 4.5 | 11.5 - 12.5 |
As
of June 30, 2019 | As of | ||||||
Assets | |||||||
Current assets | |||||||
Cash
and cash equivalents | $ | 58,529 | $ | 56,704 | |||
Accounts receivable, net | 25,505 | 28,273 | |||||
Prepaid
expenses | 2,174 | 3,631 | |||||
Other current assets | 2,826 | 455 | |||||
Total current assets | 89,034 | 89,063 | |||||
Property
and equipment, net | 1,232 | 2,146 | |||||
Goodwill | 39,283 | 39,283 | |||||
Intangible assets, net | 30,496 | 34,597 | |||||
Other
assets | 4,418 | 1,064 | |||||
Total assets | $ | 164,463 | $ | 166,153 | |||
Liabilities
and Stockholders’ Equity | |||||||
Current liabilities | |||||||
Accounts payable | $ | 2,688 | $ | 1,664 | |||
Accrued
employee compensation | 13,556 | 14,211 | |||||
Accrued liabilities | 4,371 | 3,182 | |||||
Deferred revenue, current portion | 41,557 | 52,176 | |||||
Long
term debt, current portion | 4,828 | 1,375 | |||||
Total current liabilities | 67,000 | 72,608 | |||||
Long-term liabilities | |||||||
Long
term debt | 44,277 | 52,329 | |||||
Other long-term liabilities | 1,070 | 1,182 | |||||
Total long-term liabilities | 112,347 | 53,511 | |||||
Total
liabilities | 112,347 | 126,119 | |||||
Stockholders’ equity | |||||||
Common stock | 5 | 5 | |||||
Preferred
stock | — | — | |||||
Additional paid-in capital | 259,834 | 244,814 | |||||
Accumulated other comprehensive loss | (969 | ) | (1,285 | ) | |||
Accumulated
deficit | (206,754 | ) | (203,500 | ) | |||
Total stockholders’ equity | 52,116 | 40,034 | |||||
Total liabilities and stockholders’ equity | $ | 164,463 | $ | 166,153 | |||
Three Months Ended June 30, | Nine
Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues | |||||||||||||||
Subscription | $ | 26,638 | $ | 24,944 | $ | 77,780 | $ | 72,795 | |||||||
Professional
services | 8,074 | 14,673 | 26,852 | 45,123 | |||||||||||
Total revenues | 34,712 | 39,617 | 104,632 | 117,918 | |||||||||||
Cost
of revenues | |||||||||||||||
Subscription | 8,658 | 9,564 | 26,248 | 28,619 | |||||||||||
Professional
services | 7,206 | 6,881 | 22,929 | 21,888 | |||||||||||
Total cost of revenues | 15,864 | 16,445 | 49,177 | 50,507 | |||||||||||
Gross
profit | 18,848 | 23,172 | 55,455 | 67,411 | |||||||||||
Operating expenses | |||||||||||||||
Research
and development | 7,060 | 7,746 | 21,887 | 24,861 | |||||||||||
Sales and marketing | 7,164 | 9,338 | 23,814 | 26,845 | |||||||||||
General
and administrative | 6,713 | 17,044 | 19,702 | 33,099 | |||||||||||
Total operating expenses | 20,937 | 34,128 | 65,403 | 84,805 | |||||||||||
Loss
from operations | (2,089 | ) | (10,956 | ) | (9,948 | ) | (17,394 | ) | |||||||
Interest expense, net | 689 | 4,478 | 2,313 | 7,350 | |||||||||||
Other
expenses (income), net | (4 | ) | (344 | ) | 408 | (306 | ) | ||||||||
Loss before income taxes | (2,774 | ) | (15,090 | ) | (12,669 | ) | (24,438 | ) | |||||||
Provision
for income taxes | 230 | 345 | 969 | 150 | |||||||||||
Net loss | $ | (3,004 | ) | $ | (15,435 | ) | $ | (13,638 | ) | $ | (24,588 | ) | |||
Net
loss per share: | |||||||||||||||
Basic and diluted | $ | (0.09 | ) | $ | (0.50 | ) | $ | (0.43 | ) | $ | (0.82 | ) | |||
Weighted
average number of shares used in computing net loss per share: | |||||||||||||||
Basic and diluted | 32,596 | 30,749 | 32,028 | 30,042 | |||||||||||
Nine Months Ended June 30, | |||||||
2019 | 2018 | ||||||
Cash
Flows from Operating Activities | |||||||
Net loss | $ | (13,638 | ) | $ | (24,588 | ) | |
Adjustments
to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation and amortization | 5,191 | 6,410 | |||||
Stock-based compensation | 12,822 | 19,312 | |||||
Amortization
of debt discount and issuance cost | 401 | 686 | |||||
Deferred income taxes | (170 | ) | (581 | ) | |||
Amortization of capitalized contract
acquisition costs | 1,238 | — | |||||
Other non-cash charges | (108 | ) | (30 | ) | |||
Loss on debt extinguishment | 0 | 3,142 | |||||
Changes
in assets and liabilities | |||||||
Accounts receivable | 2,295 | (6,833 | ) | ||||
Prepaid expenses and other assets | (1,368 | ) | (102 | ) | |||
Deferred
cost of implementation services | — | 488 | |||||
Accounts payable | 1,088 | (1,752 | ) | ||||
Accrued employee compensation | (653 | ) | (2,541 | ) | |||
Other
accrued and long-term liabilities | 443 | (639 | ) | ||||
Deferred revenue | (2,740 | ) | 6,386 | ||||
Net cash provided by (used in) operating activities | 4,801 | (642 | ) | ||||
Cash
Flows from Investing Activities | |||||||
Purchases of property and equipment | (227 | ) | (165 | ) | |||
Net cash used in investing activities | (227 | ) | (165 | ) | |||
Cash
Flows from Financing Activities | |||||||
Proceeds from exercise of stock options and issuance of common stock relating to employee stock purchase plan | 2,198 | 3,008 | |||||
Proceeds from term loan | — | 49,588 | |||||
Debt
issuance costs | — | (145 | ) | ||||
Principal payments on term loan | (5,000 | ) | (50,000 | ) | |||
Early payment penalty | — | (1,500 | ) | ||||
Net
cash (used in) provided by financing activities | (2,802 | ) | 951 | ||||
Effect of exchange rate changes on cash and cash equivalents | 53 | (57 | ) | ||||
Net decrease in
cash and cash equivalents | 1,825 | 87 | |||||
Cash and cash equivalents | |||||||
Beginning of period | 56,704 | 57,558 | |||||
End
of period | $ | 58,529 | $ | 57,645 | |||
Model
N, Inc. | ||||||||||||||||
Reconciliation of GAAP to Non-GAAP Operating Results | ||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Reconciliation
from GAAP net loss to adjusted EBITDA | ||||||||||||||||
GAAP net loss | $ | (3,004 | ) | $ | (15,435 | ) | $ | (13,638 | ) | $ | (24,588 | ) | ||||
Reversal
of non-GAAP items | ||||||||||||||||
Stock-based compensation expense | 3,723 | 12,030 | 12,822 | 19,312 | ||||||||||||
Depreciation
and amortization | 1,658 | 1,983 | 5,191 | 6,410 | ||||||||||||
Deferred revenue adjustment | — | — | — | 627 | ||||||||||||
Interest
expense, net | 689 | 4,478 | 2,313 | 7,350 | ||||||||||||
Other expenses (income), net | (4 | ) | (344 | ) | 408 | (306 | ) | |||||||||
Provision
for income taxes | 230 | 345 | 969 | 150 | ||||||||||||
Adjusted EBITDA | $ | 3,292 | $ | 3,057 | $ | 8,065 | $ | 8,955 | ||||||||
Three
Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Reconciliation
from GAAP revenue to revenue before deferred revenue adjustment | ||||||||||||||||
GAAP revenue | $ | 34,712 | $ | 39,617 | $ | 104,632 | $ | 117,918 | ||||||||
Deferred
revenue adjustment (c) | — | — | — | 627 | ||||||||||||
Revenue before deferred revenue adjustment | $ | 34,712 | $ | 39,617 | $ | 104,632 | $ | 118,545 | ||||||||
Three
Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Reconciliation
from GAAP gross profit to non-GAAP gross profit | ||||||||||||||||
GAAP gross profit | $ | 18,848 | $ | 23,172 | $ | 55,455 | $ | 67,411 | ||||||||
Reversal
of non-GAAP expenses | ||||||||||||||||
Stock-based compensation (a) | 938 | 699 | 2,907 | 1,972 | ||||||||||||
Amortization
of intangible assets (b) | 476 | 476 | 1,428 | 1,428 | ||||||||||||
Deferred revenue adjustment (c) | — | — | — | 627 | ||||||||||||
Non-GAAP
gross profit | $ | 20,262 | $ | 24,347 | $ | 59,790 | $ | 71,438 | ||||||||
Percentage
of revenue before deferred revenue adjustment | 58.4 | % | 61.5 | % | 57.1 | % | 60.3 | % | ||||||||
Three
Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Reconciliation
from GAAP subscription gross profit to non-GAAP subscription gross profit | ||||||||||||||||
GAAP subscription gross profit | $ | 17,980 | $ | 15,380 | $ | 51,532 | $ | 44,176 | ||||||||
Reversal
of non-GAAP expenses | ||||||||||||||||
Stock-based compensation (a) | 435 | 375 | 1,364 | 972 | ||||||||||||
Amortization
of intangible assets (b) | 476 | 476 | 1,428 | 1,428 | ||||||||||||
Non-GAAP subscription gross profit | $ | 18,891 | $ | 16,231 | $ | 54,324 | $ | 46,576 |
Three
Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Reconciliation
from GAAP operating loss to non-GAAP operating income | ||||||||||||||||
GAAP operating loss | $ | (2,089 | ) | $ | (10,956 | ) | $ | (9,948 | ) | $ | (17,394 | ) | ||||
Reversal
of non-GAAP expenses | ||||||||||||||||
Stock-based compensation (a) | 3,723 | 12,030 | 12,822 | 19,312 | ||||||||||||
Amortization
of intangible assets (b) | 1,365 | 1,381 | 4,101 | 4,181 | ||||||||||||
Deferred revenue adjustment
(c) | — | — | — | 627 | ||||||||||||
Non-GAAP operating income | $ | 2,999 | $ | 2,455 | $ | 6,975 | $ | 6,726 | ||||||||
Numerator | ||||||||||||||||
Reconciliation
between GAAP net loss and non-GAAP net income | ||||||||||||||||
GAAP net loss | $ | (3,004 | ) | $ | (15,435 | ) | $ | (13,638 | ) | $ | (24,588 | ) | ||||
Reversal
of non-GAAP expenses | ||||||||||||||||
Stock-based compensation (a) | 3,723 | 12,030 | 12,822 | 19,312 | ||||||||||||
Amortization
of intangible assets (b) | 1,365 | 1,381 | 4,101 | 4,181 | ||||||||||||
Deferred revenue adjustment
(c) | — | — | — | 627 | ||||||||||||
Non-GAAP net income (loss) | $ | 2,084 | $ | (2,024 | ) | $ | 3,285 | $ | (468 | ) | ||||||
Denominator | ||||||||||||||||
Reconciliation
between GAAP and non-GAAP net income (loss) per share | ||||||||||||||||
Shares used in computing GAAP net loss per share: | ||||||||||||||||
Basic | 32,596 | 30,749 | 32,028 | 30,042 | ||||||||||||
Diluted | 32,596 | 30,749 | 32,028 | 30,042 | ||||||||||||
Shares
used in computing non-GAAP net income per share | ||||||||||||||||
Basic | 32,596 | 30,749 | 32,028 | 30,042 | ||||||||||||
Diluted | 33,512 | 30,749 | 32,995 | 30,042 | ||||||||||||
GAAP
net loss per share | ||||||||||||||||
Basic and diluted | $ | (0.09 | ) | $ | (0.50 | ) | $ | (0.43 | ) | $ | (0.82 | ) | ||||
Non-GAAP
net income (loss) per share | ||||||||||||||||
Basic and diluted | $ | 0.06 | $ | (0.07 | ) | $ | 0.10 | $ | (0.02 | ) | ||||||
Three
Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Amortization
of intangibles assets recorded in the statements of operations | ||||||||||||||||
Cost of revenues | ||||||||||||||||
Subscription | $ | 476 | $ | 476 | $ | 1,428 | $ | 1,428 | ||||||||
Professional
services | — | — | — | — | ||||||||||||
Total amortization of intangibles assets in cost of revenue
(b) | 476 | 476 | 1,428 | 1,428 | ||||||||||||
Operating expenses | ||||||||||||||||
Research
and development | — | — | — | — | ||||||||||||
Sales and marketing | 889 | 905 | 2,673 | 2,753 | ||||||||||||
General
and administrative | — | — | — | — | ||||||||||||
Total amortization of intangibles assets in operating
expense (b) | 889 | 905 | 2,673 | 2,753 | ||||||||||||
Total amortization of intangibles assets (b) | $ | 1,365 | $ | 1,381 | $ | 4,101 | $ | 4,181 | ||||||||
Three
Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Stock-based
compensation recorded in the statements of operations | ||||||||||||||||
Cost of revenues | ||||||||||||||||
Subscription
| $ | 435 | $ | 375 | $ | 1,364 | $ | 972 | ||||||||
Professional
services | 503 | 324 | 1,543 | 1,000 | ||||||||||||
Total stock-based compensation in cost of revenue
(a) | 938 | 699 | 2,907 | 1,972 | ||||||||||||
Operating expenses | ||||||||||||||||
Research
and development | 771 | 744 | 2,396 | 2,144 | ||||||||||||
Sales and marketing | 440 | 986 | 2,824 | 2,517 | ||||||||||||
General
and administrative | 1,574 | 9,601 | 4,695 | 12,679 | ||||||||||||
Total stock-based compensation in
operating expense (a) | 2,785 | 11,331 | 9,915 | 17,340 | ||||||||||||
Total stock-based compensation
(a) | $ | 3,723 | $ | 12,030 | $ | 12,822 | $ | 19,312 | ||||||||
(a) | Stock-based compensation is a non-cash expense accounted for in accordance with FASB ASC Topic 718. Stock-based compensation is a non-cash item. We believe that the exclusion of stock-based compensation expense provides for a better comparison of our operating 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 operating results to prior periods and to our peer companies. |
(c) | Represents deferred revenue adjustment resulting from purchase price accounting that is related to the Revitas acquisition and is a non-cash item. As such, we believe this adjustment provides for a better comparison of our operating results to prior periods and to our peer companies. |
This ‘8-K’ Filing | Date | Other Filings | ||
---|---|---|---|---|
9/30/19 | ||||
8/13/19 | ||||
Filed on / For Period end: | 8/6/19 | |||
7/1/19 | ||||
6/30/19 | ||||
9/30/18 | 10-K | |||
List all Filings |