Exhibit 99.1
CallidusCloud Announces Third Quarter SaaS Revenue Increases 31% to $50.7 Million
| - | Record Q3 Total Revenue of $64.2 Million |
| - | Record Cash from Operations of $16.2 Million, up 108% Year over Year |
| - | Raises Full Year Total Revenue Guide to $248.6 to $249.6 Million |
DUBLIN, CA., November 2, 2017— Callidus Software Inc. (NASDAQ: CALD), a global leader in cloud-based sales, marketing, learning and customer experience solutions, today announced financial results for the quarter ended September 30, 2017.
“I was pleased that we grew SaaS revenues 31% in Q3 and had record cash from operations” said Leslie Stretch, president and CEO, CallidusCloud. “The quarter culminated in our annual user conference, C3. We introduced our new Augmented Intelligence capabilities in sales and learning, our Graph Data Base technology, OrientDB, our Revsym ASC 606 cloud solution and our New Learning Content Catalog. C3 is our best customer and prospecting event of the year, teeing up a strong pipeline. We are now in the thick of a very busy Q4. I am super excited to be on the road attending Dreamforce and leading a major European and APAC customer tour.”
Financial Highlights for the Third Quarter 2017
SaaS revenue was $50.7 million, an increase of 31% over the same quarter in the prior year. Maintenance revenue was $450,000, resulting in total recurring revenue of $51.2 million. SaaS revenue growth continues to benefit from success in our Lead to Money suite. Professional services revenue was $12.9 million. Total revenue was $64.2 million for the third quarter, an increase of 22% year-over-year. Normalized SaaS billings growth was 30% for the trailing twelve-month period. Normalized billings growth for the quarter was 27%. Cash and short-term investments were $176.4 million. Cash flow from operations for the quarter was $16.2 million, compared to $7.8 million in the same quarter of the prior year.
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GAAP Performance
| · | Recurring revenue gross margin was 73%, compared to 74% for the same quarter in the prior year. |
| · | Overall gross margin was 61%, compared to 62% for the same quarter in the prior year. |
| · | Operating loss was $3.7 million, compared to $3.6 million for the same quarter in the prior year. |
| · | Pre-tax loss was $3.4 million, compared to $3.7 million for the same quarter in the prior year. |
Non-GAAP Performance
The following non-GAAP measures are described below and are reconciled to the corresponding GAAP measures at the end of this press release.
| · | Recurring revenue gross margin was 77%, consistent with the corresponding period in the prior year. |
| · | Overall gross margin was 65%, consistent with the corresponding period in the prior year. |
| · | Operating income was $6.1 million, compared to $5.0 million for the same quarter in the prior year. |
| · | Pre-tax income was $6.4 million, compared to $5.0 million for the same quarter in the prior year. |
Business Highlights for the Third Quarter 2017
| • | CallidusCloud had record attendance at our customer event, C3, held in mid-September. |
| • | At C3, CallidusCloud unveiled Thunderbridge Augmented Intelligence (AI³), a new platform that applies artificial intelligence and machine learning techniques to the sales and learning process to recommend actions that increase revenue, profit and effectiveness. |
| • | CallidusCloud acquired OrientDB, one of the fastest data management platforms in the industry. |
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| • | CallidusCloud announced the bi-directional integration of its CPQ solution with SAP Hybris Cloud for Customer (C4C). The integration assists in further penetration of SAP’s ecosystem. |
| • | CallidusCloud launched Lightning Commissions and Service Motivate solutions in the Salesforce AppExchange. |
Financial Outlook for 2017 – Fourth Quarter and Full Year
For the fourth quarter of 2017, CallidusCloud expects SaaS revenue to be between $52.4 million and $53.4 million. Maintenance revenue is expected to be between $250,000 and $450,000. Total revenue is expected to be between $65.0 million and $66.0 million. GAAP operating loss is expected to be between $2.5 million and $2.9 million, with GAAP pre-tax loss between $2.4 million and $2.8 million. Non-GAAP operating income is expected to be between $7.5 million and $8.5 million, with non-GAAP pre-tax income between $7.6 million and $8.6 million.
For the full year of 2017, CallidusCloud is updating its previous SaaS revenue guidance to be between $196.0 million and $197.0 million and raising its total revenue guidance to be between $248.6 million and $249.6 million. Maintenance revenue is expected to be between $2.6 million and $2.8 million. GAAP operating loss is expected to be between $20.1 million and $20.5 million, with GAAP pre-tax loss between $19.4 million and $19.8 million. Non-GAAP operating income is expected to be between $23.0 million and $24.0 million, with non-GAAP pre-tax income between $23.7 million and $24.7 million.
Preliminary Outlook for 2018
For the full year of 2018, the Company expects SaaS revenue to be between $245.0 million and $251.0 million, representing 25 to 28% growth. Total revenue is expected to be between $296.0 million and $303.0 million. This preliminary outlook is based on the current standard for reporting revenue under U.S. GAAP guidelines.
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Conference Call
In conjunction with this announcement CallidusCloud will host a conference call at 1:30 p.m. Pacific Time (PT) today to discuss the third quarter and outlook for the fourth quarter 2017 and the full year 2017. The conference call will be available via live webcast at the Investor Relations section of CallidusCloud’s website.
Webcast site: http://www.calliduscloud.com/about-us/investor-relations
Dial-in: 866-324-2828 (International callers: 678-509-7525)
Passcode: 97943167
Replay information: A webcast replay will be available on the Investor Relations section of our website under Calendar
of Events.
For more information, please visit: http://www.calliduscloud.com/about-us/investor-relations/
About CallidusCloud
Callidus Software Inc. (NASDAQ: CALD), doing business as CallidusCloud®, is the global leader in cloud-based sales, marketing, learning and customer experience solutions. CallidusCloud enables organizations to accelerate and maximize their Lead to Money process with a complete suite of solutions that identify the right leads, ensure proper territory and quota distribution, enable sales forces, automate configure price quote, and streamline sales compensation – driving bigger deals, faster. Over 5,800 leading organizations, across all industries, rely on CallidusCloud to optimize the Lead to Money process to close more deals for more money in record time.
For more information, please visit www.calliduscloud.com.
Non-GAAP Financial Measures
In this release, CallidusCloud has provided additional financial information that has not been prepared in accordance with GAAP. This information includes non-GAAP gross margin, non-GAAP recurring revenue gross margin, non-GAAP operating expenses, non-GAAP operating income, and non-GAAP net income before provision for income taxes. CallidusCloud uses non-GAAP measures internally in analyzing its financial results and believes that they are useful to investors as a supplement to GAAP measures in evaluating CallidusCloud’s operating performance. CallidusCloud believes that the use of these non-GAAP measures provides additional insight for investors to use in evaluation of ongoing operating results and trends and in comparing its financial measures with other companies in CallidusCloud’s industry, many of which present non-GAAP financial measures that may resemble our non-GAAP financial measures. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
Our non-GAAP measures reflect adjustments based on the following items:
Stock-based compensation expense: We have excluded the effect of stock-based compensation expense from our non-GAAP gross profit, recurring revenue gross profit, operating expenses, operating income, and net income before provision for income taxes. We believe the exclusion of stock-based compensation expense provides a useful comparison of our operating results to our peers.
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Restructuring and other expense: We have excluded the effect of restructuring and other expense from our non-GAAP operating expenses, operating income and net income before provision for income taxes. Restructuring and other expense consists of employee severance and facility exit costs. We feel it is useful to investors to understand the effects of these items on our financial results.
Patent litigation and settlement costs: We have excluded patent litigation and settlement costs from our non-GAAP gross profit, recurring revenue gross profit, operating expenses, operating income, and net income before provision for income taxes. We believe patent litigation and settlement costs are not indicative of our ongoing business operations, and are inconsistent in amount and frequency; as such we exclude these costs during our evaluation of our business performance.
Non-cash amortization of acquired intangible assets: We have excluded the effect of amortization of acquired intangibles which include developed technology, customer relationships, trade names, domain names, patents and licenses, and order backlog from our non-GAAP gross profit, recurring revenue gross profit, operating expenses, operating income, other income and expense, and net income before provision for income taxes. Amortization of acquired intangibles are significantly affected by timing, and as such, can be inconsistent in amount and nature.
Acquisition-related costs: We have excluded the costs related to acquisitions from our non-GAAP operating expenses, operating income, net income and net income before provision for income taxes. These costs include legal and transactional costs associated with acquisition activities as well as expense related to earnouts that we would not have otherwise incurred in the periods presented as part of our continuing operations. We believe the exclusion of acquisition-related costs provides a useful comparison of our operating results to our peers.
Cash taxes: Cash taxes are defined as GAAP current income tax expense excluding the related tax amount for non-cash and non-GAAP items.
Additionally, CallidusCloud believes the following supplemental non-GAAP financial information is useful to investors and others in assessing its operating performance. A calculation of the supplemental non-GAAP financial information is provided in the table titled “Non-GAAP Supplemental Financial Information.”
| · | SaaS billings is calculated as SaaS revenue plus the sequential change in SaaS deferred revenue in a period. |
| · | Normalized SaaS billings is calculated as SaaS revenue plus the sequential change in SaaS deferred revenue, reduced by the remaining deferred revenue acquired during the period, plus or minus the effect of multiple year SaaS billings in that period. |
We believe that normalized SaaS billings provide valuable insight into the sales of our solutions and the performance of our business. We do not consider normalized SaaS billings as a substitute for revenue recognition or revenue measurement.
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Note on Forward-Looking Statements
The forward-looking statements included in this press release, including for example discussion of our commercial prospects, partnerships, estimates of future revenues, operating income/loss and expenses, stock-based compensation expenses, amortization of acquired intangible assets, acquisition-related costs, restructuring and other expenses, and patent litigation and settlement costs and estimates reflect management’s best judgment based on factors currently known and involve risks and uncertainties. These risks and uncertainties include, but are not limited to, potential disruption of customer purchase decisions resulting from global economic conditions, timing and size of orders, relative growth of our recurring revenue, potential decreases in customer spending, uncertainty regarding purchasing trends in the cloud software market, customer cancellations or non-renewal of maintenance contracts or on-demand services, our potential inability to manage effectively any growth we experience, our ability to develop new products and services, increased competition or new entrants in the marketplace, potential impact of acquisitions and investments, changes in staffing levels, and other risks detailed in periodic reports we file with the Securities and Exchange Commission, including our most recent Quarterly Report on Form 10-Q which may be obtained by contacting CallidusCloud’s Investor Relations department at 415-445-3232, or from the Investor Relations section of CallidusCloud’s website (http://www.calliduscloud.com/about-us/investor-relations/). Actual results may differ materially from those presently reported. We assume no obligation to update the information contained in this release.
© 2017 Callidus Software Inc. All rights reserved. Callidus, Callidus Software, the Callidus Software logo, CallidusCloud, the CallidusCloud logo, Badgeville, BridgeFront, Clicktools, Datahug, iCentera, Lead to Money, LeadFormix, LeadRocket, Learning Heroes, Learnpass, Litmos, the Litmos logo, OrientDB, Producer Pro, RevSym, SalesGenius, Surve, Syncfrog, Thunderbridge, and ViewCentral are trademarks, service marks, or registered trademarks of Callidus Software Inc. and its affiliates in the United States and other countries. All other brand, service or product names are trademarks or registered trademarks of their respective companies or owners.
Investor Relations Contact
Carolyn Bass
Market Street Partners
(415) 445-3232
cald@marketstreetpartners.com
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| CALLIDUS SOFTWARE INC. | ||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Revenue: | ||||||||||||||||
| Recurring | $ | 51,183 | $ | 41,465 | $ | 145,985 | $ | 118,361 | ||||||||
| Services and license | 12,993 | 11,042 | 37,595 | 32,275 | ||||||||||||
| Total revenue | 64,176 | 52,507 | 183,580 | 150,636 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| Recurring | 13,851 | 10,948 | 40,408 | 31,047 | ||||||||||||
| Services and license | 11,063 | 9,229 | 31,922 | 25,822 | ||||||||||||
| Total cost of revenue | 24,914 | 20,177 | 72,330 | 56,869 | ||||||||||||
| Gross profit | 39,262 | 32,330 | 111,250 | 93,767 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing | 24,166 | 18,357 | 68,840 | 56,942 | ||||||||||||
| Research and development | 8,973 | 8,637 | 27,551 | 23,127 | ||||||||||||
| General and administrative | 9,641 | 8,894 | 31,363 | 26,445 | ||||||||||||
| Restructuring and other | 157 | 80 | 1,129 | 482 | ||||||||||||
| Total operating expenses | 42,937 | 35,968 | 128,883 | 106,996 | ||||||||||||
| Operating loss | (3,675 | ) | (3,638 | ) | (17,633 | ) | (13,229 | ) | ||||||||
| Interest income and other income (expense) | 306 | (3 | ) | 642 | (55 | ) | ||||||||||
| Interest expense | (16 | ) | (48 | ) | (58 | ) | (130 | ) | ||||||||
| Loss before provision for income taxes | (3,385 | ) | (3,689 | ) | (17,049 | ) | (13,414 | ) | ||||||||
| Provision for income taxes | 442 | 258 | 1,023 | 755 | ||||||||||||
| Net loss | $ | (3,827 | ) | $ | (3,947 | ) | $ | (18,072 | ) | $ | (14,169 | ) | ||||
| Net loss per share | ||||||||||||||||
| Basic and Diluted | $ | (0.06 | ) | $ | (0.07 | ) | $ | (0.28 | ) | $ | (0.25 | ) | ||||
| Weighted average shares used in computing net loss per share: | ||||||||||||||||
| Basic and Diluted | 65,624 | 58,009 | 65,028 | 57,237 | ||||||||||||
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| CALLIDUS SOFTWARE INC. | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (In thousands) | ||||||||
| (unaudited) | ||||||||
| September 30, | December 31, | |||||||
| 2017 | 2016 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 100,957 | $ | 148,008 | ||||
| Short-term investments | 75,459 | 39,266 | ||||||
| Accounts receivable, net | 51,653 | 55,464 | ||||||
| Prepaid and other current assets | 22,100 | 18,275 | ||||||
| Total current assets | 250,169 | 261,013 | ||||||
| Property and equipment, net | 44,551 | 35,456 | ||||||
| Goodwill | 79,918 | 63,957 | ||||||
| Intangible assets, net | 28,252 | 21,659 | ||||||
| Deposits and other non-current assets | 5,335 | 4,416 | ||||||
| Total assets | $ | 408,225 | $ | 386,501 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 3,815 | $ | 3,573 | ||||
| Accrued payroll and related expenses | 13,923 | 17,831 | ||||||
| Accrued expenses | 26,146 | 15,126 | ||||||
| Deferred revenue | 110,429 | 99,758 | ||||||
| Total current liabilities | 154,313 | 136,288 | ||||||
| Deferred revenue, non-current | 1,080 | 3,209 | ||||||
| Deferred income taxes, non-current | 3,811 | 1,541 | ||||||
| Other non-current liabilities | 8,764 | 8,602 | ||||||
| Total liabilities | 167,968 | 149,640 | ||||||
| Stockholders’ equity: | ||||||||
| Common stock | 66 | 64 | ||||||
| Additional paid-in capital | 577,387 | 559,200 | ||||||
| Treasury stock | (14,430 | ) | (14,430 | ) | ||||
| Accumulated other comprehensive loss | (1,862 | ) | (5,141 | ) | ||||
| Accumulated deficit | (320,904 | ) | (302,832 | ) | ||||
| Total stockholders’ equity | 240,257 | 236,861 | ||||||
| Total liabilities and stockholders’ equity | $ | 408,225 | $ | 386,501 | ||||
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| CALLIDUS SOFTWARE INC. | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (In thousands) | ||||||||
| (unaudited) | ||||||||
| Nine Months Ended September 30, | ||||||||
| 2017 | 2016 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (18,072 | ) | $ | (14,169 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Depreciation expense | 8,574 | 5,656 | ||||||
| Amortization of intangible assets | 6,080 | 4,616 | ||||||
| Provision for doubtful accounts | 994 | 1,227 | ||||||
| Stock-based compensation | 25,337 | 20,910 | ||||||
| Excess tax benefits from stock-based compensation | - | (26 | ) | |||||
| Deferred income taxes | 235 | 13 | ||||||
| Loss on disposal of property and equipment | 3 | 22 | ||||||
| Gain on foreign currency from mark-to-market of derivatives | (88 | ) | (1 | ) | ||||
| Amortization of premium on investments | 149 | 132 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 3,555 | (6,037 | ) | |||||
| Prepaid and other current assets | (2,074 | ) | (3,374 | ) | ||||
| Other non-current assets | 445 | 118 | ||||||
| Accounts payable | (260 | ) | 19 | |||||
| Accrued expenses | 1,564 | (225 | ) | |||||
| Accrued payroll and related expenses | (3,907 | ) | 1,473 | |||||
| Accrued restructuring and other expenses | 131 | 314 | ||||||
| Deferred revenue | 7,255 | 10,101 | ||||||
| Net cash provided by operating activities | 29,921 | 20,769 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchases of investments | (58,241 | ) | (12,113 | ) | ||||
| Proceeds from maturities and sale of investments | 20,346 | 12,876 | ||||||
| Purchases of property and equipment | (11,438 | ) | (7,091 | ) | ||||
| Purchases of intangible assets | (458 | ) | (687 | ) | ||||
| Acquisitions, net of cash acquired | (19,068 | ) | (11,500 | ) | ||||
| Change in restricted cash | (1,355 | ) | - | |||||
| Net cash used in investing activities | (70,214 | ) | (18,515 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from follow-on offering, net of issuance costs | - | 87,144 | ||||||
| Proceeds from issuance of common stock | 5,945 | 4,082 | ||||||
| Restricted stock units acquired to settle employee withholding liability | (13,158 | ) | (2,705 | ) | ||||
| Excess tax benefits from stock-based compensation | - | 26 | ||||||
| Payment of consideration related to acquisitions | (100 | ) | (510 | ) | ||||
| Net cash (used in) provided by financing activities | (7,313 | ) | 88,037 | |||||
| Effect of foreign currency exchange rates on cash and cash equivalents | 555 | (407 | ) | |||||
| Net (decrease) increase in cash and cash equivalents | (47,051 | ) | 89,884 | |||||
| Cash and cash equivalents at beginning of period | 148,008 | 77,232 | ||||||
| Cash and cash equivalents at end of period | $ | 100,957 | $ | 167,116 | ||||
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| CALLIDUS SOFTWARE INC. | ||||||||||||||||
| GAAP TO NON-GAAP ADJUSTMENT SUMMARY | ||||||||||||||||
| (In thousands) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| GAAP to Non-GAAP adjustments include stock-based compensation, amortization of acquired intangible assets, patent litigation and settlement costs, acquisition-related costs, restructuring and other expenses as follows: | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Cost of revenue: | ||||||||||||||||
| Recurring | $ | 1,927 | $ | 1,334 | $ | 5,328 | $ | 3,655 | ||||||||
| Services and license | 577 | 530 | 1,768 | 1,567 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing | 2,657 | 2,675 | 8,076 | 7,616 | ||||||||||||
| Research and development | 1,688 | 1,251 | 5,116 | 3,592 | ||||||||||||
| General and administrative | 2,734 | 2,782 | 11,694 | 8,614 | ||||||||||||
| Restructuring and other | 157 | 80 | 1,129 | 482 | ||||||||||||
| Total | $ | 9,740 | $ | 8,652 | $ | 33,111 | $ | 25,526 | ||||||||
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| CALLIDUS SOFTWARE INC. | ||||||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | ||||||||||||||||
| (In thousands, except for percentages) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Non-GAAP gross profit reconciliation: | ||||||||||||||||
| Gross profit | $ | 39,262 | $ | 32,330 | $ | 111,250 | $ | 93,767 | ||||||||
| Gross margin | 61 | % | 62 | % | 61 | % | 62 | % | ||||||||
| Add back: | ||||||||||||||||
| Stock-based compensation | 1,024 | 918 | 3,050 | 2,916 | ||||||||||||
| Non-cash amortization of acquired | ||||||||||||||||
| intangible assets | 1,480 | 946 | 4,046 | 2,306 | ||||||||||||
| Non-GAAP gross profit | $ | 41,766 | $ | 34,194 | $ | 118,346 | $ | 98,989 | ||||||||
| Gross margin | 65 | % | 65 | % | 64 | % | 66 | % | ||||||||
| Non-GAAP recurring revenue gross profit reconciliation: | ||||||||||||||||
| Recurring revenue gross profit | $ | 37,332 | 30,517 | 105,577 | 87,314 | |||||||||||
| Recurring revenue gross margin | 73 | % | 74 | % | 72 | % | 74 | % | ||||||||
| Add back: | ||||||||||||||||
| Stock-based compensation | 447 | 388 | 1,282 | 1,350 | ||||||||||||
| Non-cash amortization of acquired | ||||||||||||||||
| intangible assets | 1,480 | 946 | 4,046 | 2,306 | ||||||||||||
| Non-GAAP recurring revenue gross profit | $ | 39,259 | $ | 31,851 | $ | 110,905 | $ | 90,970 | ||||||||
| Non-GAAP recurring revenue gross margin | 77 | % | 77 | % | 76 | % | 77 | % | ||||||||
| Non-GAAP operating expense reconciliation: | ||||||||||||||||
| Operating expenses | $ | 42,937 | 35,968 | 128,883 | 106,996 | |||||||||||
| Operating expenses, as a % of total | ||||||||||||||||
| revenue | 67 | % | 69 | % | 70 | % | 71 | % | ||||||||
| Subtract: | ||||||||||||||||
| Stock-based compensation | (6,122 | ) | (5,928 | ) | (22,501 | ) | (17,994 | ) | ||||||||
| Non-cash amortization of acquired | ||||||||||||||||
| intangible assets | (462 | ) | (501 | ) | (1,407 | ) | (1,308 | ) | ||||||||
| Patent litigation and settlement costs | (28 | ) | (29 | ) | (84 | ) | (85 | ) | ||||||||
| Acquisition-related costs | (467 | ) | (250 | ) | (894 | ) | (435 | ) | ||||||||
| Restructuring and other | (157 | ) | (80 | ) | (1,129 | ) | (482 | ) | ||||||||
| Non-GAAP operating expenses | $ | 35,701 | $ | 29,180 | $ | 102,868 | $ | 86,692 | ||||||||
| Non-GAAP operating expenses, as a % | ||||||||||||||||
| of total revenue | 56 | % | 56 | % | 56 | % | 58 | % | ||||||||
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| CALLIDUS SOFTWARE INC. | ||||||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | ||||||||||||||||
| (In thousands, except for percentages) | ||||||||||||||||
(unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September | September | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Non-GAAP operating income (loss) reconciliation: | ||||||||||||||||
| Operating loss | $ | (3,675 | ) | $ | (3,638 | ) | $ | (17,633 | ) | $ | (13,229 | ) | ||||
| Operating loss, as a % of total | ||||||||||||||||
| revenue | (6 | )% | (7 | )% | (10 | )% | (9 | )% | ||||||||
| Add back: | ||||||||||||||||
| Stock-based compensation | 7,146 | 6,846 | 25,551 | 20,910 | ||||||||||||
| Non-cash amortization of acquired | ||||||||||||||||
| intangible assets | 1,942 | 1,447 | 5,453 | 3,614 | ||||||||||||
| Patent litigation and settlement costs | 28 | 29 | 84 | 85 | ||||||||||||
| Acquisition-related costs | 467 | 250 | 894 | 435 | ||||||||||||
| Restructuring and other | 157 | 80 | 1,129 | 482 | ||||||||||||
| Non-GAAP operating income | $ | 6,065 | $ | 5,014 | $ | 15,478 | $ | 12,297 | ||||||||
| Non-GAAP operating income, as a % | ||||||||||||||||
| of total revenue | 9 | % | 10 | % | 8 | % | 8 | % | ||||||||
| Non-GAAP net income (loss) before provision for income taxes reconciliation: | ||||||||||||||||
| Net loss before provision for income taxes | $ | (3,385 | ) | $ | (3,689 | ) | $ | (17,049 | ) | $ | (13,414 | ) | ||||
| Net loss before provision for income taxes, as a % of total | ||||||||||||||||
| revenue | (5 | )% | (7 | )% | (9 | )% | (9 | )% | ||||||||
| Add back: | ||||||||||||||||
| Stock-based compensation | 7,146 | 6,846 | 25,551 | 20,910 | ||||||||||||
| Non-cash amortization of acquired | ||||||||||||||||
| intangible assets | 1,942 | 1,447 | 5,453 | 3,614 | ||||||||||||
| Patent litigation and settlement costs | 28 | 29 | 84 | 85 | ||||||||||||
| Acquisition-related costs | 467 | 250 | 894 | 435 | ||||||||||||
| Restructuring and other | 157 | 80 | 1,129 | 482 | ||||||||||||
| Non-GAAP net income before provision for income taxes | $ | 6,355 | $ | 4,963 | $ | 16,062 | $ | 12,112 | ||||||||
| Non-GAAP net income before provision | ||||||||||||||||
| for income taxes, as a % of total revenue | 10 | % | 9 | % | 9 | % | 8 | % | ||||||||
| Cash taxes | $ | 311 | $ | 176 | $ | 720 | $ | 567 | ||||||||
| Weighted average shares - basic | 65,624 | 58,009 | 65,028 | 57,237 | ||||||||||||
| Weighted average shares - diluted | 67,300 | 60,221 | 66,913 | 59,245 | ||||||||||||
| 12 |
| CALLIDUS SOFTWARE INC. | ||||||||||||||||
| Non-GAAP Supplemental Financial Information | ||||||||||||||||
| (In thousands, except for percentages) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended | Trailing Twelve Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| SaaS Billings | 2017 | 2016 | 2017 | 2016 | ||||||||||||
| SaaS revenue | $ | 50,741 | $ | 38,723 | $ | 185,745 | $ | 142,050 | ||||||||
| Add back: | ||||||||||||||||
| Increase in SaaS deferred revenue | 3,755 | 6,503 | 20,331 | 18,104 | ||||||||||||
| SaaS billings | $ | 54,496 | $ | 45,226 | $ | 206,076 | $ | 160,154 | ||||||||
| SaaS billings growth rate | 20 | % | 29 | % | ||||||||||||
| Normalized Billings | ||||||||||||||||
| SaaS billings | $ | 54,496 | $ | 45,226 | $ | 206,076 | $ | 160,154 | ||||||||
| Multi-year billings | 1,893 | (1,181 | ) | 4,234 | 2,341 | |||||||||||
| Remaining deferred revenue from acquisitions | (459 | ) | - | (897 | ) | (1,342 | ) | |||||||||
| Normalized SaaS billings | $ | 55,930 | $ | 44,045 | $ | 209,413 | $ | 161,153 | ||||||||
| Normalized SaaS billings growth rate | 27 | % | 30 | % | ||||||||||||
| 13 |
CALLIDUS SOFTWARE INC.
FINANCIAL OUTLOOK
The guidance figures provided below and elsewhere in this press release are forward-looking statements, reflect a number of estimates, assumptions and other uncertainties, and are approximate in nature because the Company's future performance is difficult to predict. Such guidance is based on information available on the date of this press release, and the Company assumes no obligation to update.
| 14 |
| REVENUE GUIDANCE | |||||
| (In thousands) | |||||
| (unaudited) | |||||
| Three Months Ended | Twelve Months Ended | ||||
| December 31, 2017 | December 31, 2017 | ||||
| SaaS revenue | $52,400 - $53,400 | $196,000 - $197,000 | |||
| Maintenance revenue | $250 - $450 | $2,600 - $2,800 | |||
| Total revenue | $65,000- $66,000 | $248,600 - $249,600 | |||
| RECONCILIATION OF GAAP TO NON-GAAP FORWARD LOOKING GUIDANCE MEASURES | ||||||||||||||||
| (In thousands) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, 2017 | December 31, 2017 | |||||||||||||||
| From | To | From | To | |||||||||||||
| Non-GAAP operating income reconciliation: | ||||||||||||||||
| GAAP operating loss | $ | (2,500 | ) | $ | (2,900 | ) | $ | (20,100 | ) | $ | (20,500 | ) | ||||
| Add back: | ||||||||||||||||
| Stock-based compensation | 7,500 | 8,100 | 33,000 | 33,700 | ||||||||||||
| Non-cash amortization of acquired | ||||||||||||||||
| intangible assets | 2,200 | 2,500 | 7,700 | 8,000 | ||||||||||||
| Acquisition, patent litigation, restructuring and other | 300 | 800 | 2,400 | 2,800 | ||||||||||||
| Non-GAAP operating income | $ | 7,500 | $ | 8,500 | $ | 23,000 | $ | 24,000 | ||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, 2017 | December 31, 2017 | |||||||||||||||
| From | To | From | To | |||||||||||||
| Non-GAAP pre-tax income reconciliation: | ||||||||||||||||
| GAAP (loss) before income taxes | $ | (2,400 | ) | $ | (2,800 | ) | $ | (19,400 | ) | $ | (19,800 | ) | ||||
| Add back: | ||||||||||||||||
| Stock-based compensation | 7,500 | 8,100 | 33,000 | 33,700 | ||||||||||||
| Non-cash amortization of acquired | ||||||||||||||||
| intangible assets | 2,200 | 2,500 | 7,700 | 8,000 | ||||||||||||
| Acquisition, patent litigation, restructuring and other | 300 | 800 | 2,400 | 2,800 | ||||||||||||
| Non-GAAP pre-tax income | $ | 7,600 | $ | 8,600 | $ | 23,700 | $ | 24,700 | ||||||||
| GAAP taxes | $ | 350 | $ | 450 | $ | 1,400 | $ | 1,500 | ||||||||
| Cash taxes | $ | 300 | $ | 400 | $ | 1,000 | $ | 1,100 | ||||||||
| Weighted average basic shares outstanding | 65,750 | 66,250 | 65,000 | 65,500 | ||||||||||||
| Weighted average diluted shares outstanding | 67,500 | 68,000 | 67,000 | 67,500 | ||||||||||||