UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of
the Securities Exchange Act of 1934
Date of Report (date of earliest
event reported)
August 2, 2016
Quotient Technology Inc.
(Exact name of Registrant as specified in its charter)
Delaware | 001-36331 | 77-0485123 |
(State or other jurisdiction of incorporation or organization) |
(Commission File Number) | (I.R.S. Employer Identification Number) |
400 Logue
Avenue
Mountain View, California 94043
(Address of principal executive offices)
(650) 605-4600
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition
On August 2, 2016 Quotient Technology Inc., (the “Company”) issued a press release regarding its financial results for the second quarter ended June 30, 2016. The press release is furnished herewith as Exhibit 99.1.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
As previously announced in a Current Report on Form 8-K filed with the Securities and Exchange Commission on July 18, 2016, the Company announced that Ms. Jennifer Ceran has given notice of her intention to step down as Chief Financial Officer, effective as of August 9, 2016.
In connection with Ms. Ceran’s transition and departure, on August 2, 2016, the Company and Ms. Ceran entered into a letter agreement that confirms the terms of Ms. Ceran’s transition and termination of employment with the Company (the “Transition Agreement”). Pursuant to the terms of the Transition Agreement, Ms. Ceran has released all claims she may have against the Company and affirmed her obligations regarding Company confidential information, as well as certain nondisparagement and nonsolicitation obligations. The Transition Agreement will become effective on the 8th day after August 2, 2016, unless Ms. Ceran revokes the Transition Agreement.
The Transition Agreement provides that between August 10, 2016 and through Ms. Ceran’s actual termination of employment with the Company (the “Transition Period”), which is expected to occur on September 9, 2016, Ms. Ceran will continue to be employed by the Company as a special advisor to assist in the transition of her duties. During the Transition Period, Ms. Ceran will receive 100% of her current salary, will continue to vest in her equity awards subject to their terms, and will continue to be eligible to participate in the Company’s benefits plans, subject to their terms. Upon the completion of the Transition Period, or if Ms. Ceran voluntarily separates from the Company on or after August 9, 2016, then subject to Ms. Ceran executing and not revoking a supplemental release of claims in favor of the Company, she will receive a lump sum severance payment of $248,667, less applicable tax withholdings.
The foregoing summary of the Transition Agreement does not purport to be complete and is qualified in its entirety by the full text of the Transition Agreement, a copy of which will be filed with the Company’s Quarterly Report on Form 10-Q for the quarter ending September 30, 2016.
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On August 2, 2016, the Company announced the appointment of Mr. Ronald J. Fior, age 59, as the Company’s Chief Financial Officer (“CFO”), effective on or around August 10, 2016.
Mr. Fior served as the Chief Financial Officer for Good Technology, a mobile security company, from October 2013 to October 2015. Before joining Good Technology, Mr. Fior served in various capacities at Callidus Software Inc., a cloud software company, from September 2002 to July 2013, including as its Senior Vice President, Finance and Operations and Chief Financial Officer from April 2006 to May 2013, and as Vice President of Finance and Chief Financial Officer from September 2002 to April 2006. Mr. Fior holds a Bachelor of Commerce Degree from the University of Saskatchewan, Canada, and is a Chartered Accountant.
In connection with Mr. Fior’s appointment as CFO, the Company and Mr. Fior entered into an offer letter (the “Offer Letter”) dated July 26, 2016. Pursuant to the Offer Letter, Mr. Fior will be paid an annual base salary of $370,000 and will be eligible for an annual, discretionary bonus of up to 50% of his base salary. Mr. Fior will also be eligible for the Company’s standard benefits programs. The Offer Letter will be filed with the Company’s Quarterly Report on Form 10-Q for the quarter ending September 30, 2016.
Pursuant to the Offer Letter, subject to the approval of the Company’s Board of Directors (the “Board”) or its Compensation Committee (the “Compensation Committee”), Mr. Fior will be granted restricted stock units (“RSUs”) to acquire 85,000 shares of the Company’s common stock (“Common Stock”) pursuant to the Company’s 2013 Equity Incentive Plan (the “2013 Plan”) and an award agreement. The RSUs will be scheduled to vest as to 25% of the RSUs on the one year anniversary of Mr. Fior’s employment start date or other vesting commencement date as determined by the Board or the Compensation Committee (the “Vesting Commencement Date”), and as to 25% of the RSUs each year thereafter on the same day of the year as the Vesting Commencement Date.
Subject to the approval of the Board or the Compensation Committee, Mr. Fior will also be granted an option (the “Stock Option”) to purchase 185,000 shares of Common Stock pursuant to the 2013 Plan and an award agreement with an exercise price equal to the fair market value of the Common Stock on the date of grant. The Stock Option will be scheduled to vest as to 25% of the shares subject to the Stock Option on the one (1) year anniversary of the Vesting Commencement Date, and as to 1/48 of the shares subject to the Stock Option each month thereafter.
Mr. Fior will enter into the Company’s standard form of indemnification agreement, a copy of which was previously filed on February 14, 2014 as Exhibit 10.1 to the Company’s Registration Statement on Form S-1 No. 333-193692 and the Company’s form of Change of Control Severance Agreement, as further described below.
There are no family relationships between Mr. Fior and any director or executive officer of the Company, and he has no indirect material interest in any transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
On August 2, 2016, the Company entered into a Change of Control Severance Agreement (each, a “Change of Control Agreement”, and collectively, the “Change of Control Agreements”) with Steven Boal, the Company's Chief Executive Officer, Mir Aamir, the Company’s President and Chief Operating Officer and Ronald J. Fior, the Company’s future Chief Financial Officer (each, an “Executive”).
Each Change of Control Agreement has a three year term and any obligations of the Company will lapse upon the end of the term. Pursuant to the Change of Control Agreements, if the Executive’s employment with the Company is terminated without Cause (as such term is defined in the Change of Control Agreement) and not by reason of death or Disability (as such term is defined in the Change of Control Agreement), or, for Messrs. Boal and Aamir only, if the Executive terminates his employment with the Company for Good Reason, and, in any event, such termination does not occur within three months before or twelve months after a Change of Control (as such term is defined in the Change of Control Agreement) of the Company (the “Change of Control Period”), then provided the Executive signs and does not a revoke a separation agreement and release of claims in favor of the Company and subject to the terms of the Change of Control Agreement, the Executive will receive the following: (i) a lump-sum payment (less applicable withholding taxes) equal to 100% for Messrs. Boal and Aamir and 75% for Mr. Fior, of the Executive’s annual base salary as in effect immediately prior to the Executive’s termination date, and (ii) a taxable lump-sum payment (less applicable withholding taxes) in an amount equal to the monthly COBRA premium that the Executive would be required to pay to continue the Executive’s group health coverage in effect on the date of Executive’s termination of employment, multiplied by 12 for Messrs. Boal and Aamir and 9 for Mr. Fior. In addition, 25% of the shares subject to certain of Mr. Aamir’s outstanding equity awards will accelerate and become exercisable, to the extent applicable.
Pursuant to the terms of the Change of Control Agreement, if the Executive’s employment with the Company is terminated by the Company without Cause and not by reason of death or Disability or he terminates his employment with the Company for Good Reason (as such term is defined in the Change of Control Agreement), and, in any event, such termination occurs during the Change of Control Period, then provided the Executive signs and does not revoke a separation agreement and release of claims in favor of the Company and subject to the terms of the Change of Control Agreement, the Executive will receive the following: (i) a lump-sum payment (less applicable withholding taxes) equal to 150% for Messrs. Boal and Aamir and 100% for Mr. Fior, of the Executive's annual base salary as in effect immediately prior to the Executive’s termination date or, if greater, at the level in effect immediately prior to the Change of Control; (ii) a lump-sum payment (less applicable withholding taxes) equal to 150% for Messrs. Boal and Aamir and 100% of Mr. Fior, of the Executive’s annual bonus for the year of termination at target level, as in effect immediately prior to the Executive’s termination date, or if greater, at the level in effect immediately prior to the Change of Control; (iii) a taxable lump-sum payment (less applicable withholding taxes) in an amount equal to the monthly COBRA premium that the Executive would be required to pay to continue Executive’s group health coverage in effect on the date of the Executive’s termination of employment, multiplied by 18 for Messrs. Boal and Aamir and 12 for Mr. Fior; and (iv) 100% of the Executive’s then-outstanding and unvested Equity Awards (as such term is defined in the Change of Control Agreement) will become vested in full and in the case of stock options and stock appreciate rights, will become exercisable.
In the event that the severance and other benefits payable to the Executive constitutes “parachute payments” under Section 280G of the U.S. tax code and would be subject to the applicable excise tax, then the Executive’s severance benefits will be either (A) delivered in full or (B) delivered to such lesser extent which would result in no portion of such benefits being subject to the excise tax, whichever results in the receipt by the Executive on an after-tax basis of the greatest amount of benefits.
The foregoing description of the Change of Control Agreements does not purport to be complete and is qualified in its entirety by reference to the Change of Control Agreements, copies of which will be filed with the Company’s Quarterly Report on Form 10-Q for the quarter ending September 30, 2016.
Item 7.01 Regulation FD Disclosure
The Company issued a press release, dated August 2, 2016, regarding the financial results. The press release is furnished herewith as Exhibit 99.1.
The information set forth under Items 2.02 and 7.01, including Exhibit 99.1 shall not be deemed “filed” for purposes of the Securities Exchange Act of 1934, as amended, or incorporated by reference in any filing under the Securities Act of 1933, as amended, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
99.1 Press Release, issued by Quotient Technology Inc. on August 2, 2016.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Quotient Technology Inc. | ||
By: | /s/ Connie Chen | |
Connie Chen | ||
General Counsel |
Date: August 2, 2016
Quotient Technology Inc. Reports Second Quarter 2016 Financial Results
MOUNTAIN VIEW, Calif., Aug. 2, 2016 /PRNewswire/ -- Quotient Technology Inc. (NYSE: QUOT), a leading digital promotions and media company that connects brands, retailers, and shoppers, today reported financial results for the second quarter ended June 30, 2016.
Second Quarter 2016 Financial Highlights
"We delivered a strong second quarter, as we continued to provide value to CPGs, retailers and shoppers. This quarter we expanded our reach of Retailer iQ and saw great momentum in targeted offers. We also launched a new targeted media offering that uses point of sale data to measure real-time incremental sales and attribute them to specific digital media programs," said Steven Boal, CEO.
Boal added, "CPG brands and retailers continue to embrace digital marketing strategies, as they realize the important role personalized and targeted marketing plays in an increasingly competitive environment. Additionally, retailers that conduct digital marketing activities more frequently on Retailer iQ show higher levels of shopper adoption and engagement than retailers who are less active on the platform. As we enter the second half of 2016, we see continued momentum in the business and are raising full year revenue and Adjusted EBITDA guidance."
Total revenue for the three months ended June 30, 2016 was $67.2 million, as compared to $55.9 million for the comparable period in 2015. GAAP net loss for the three months ended June 30, 2016 was $3.5 million, which included $7.3 million in stock-based compensation expense, $5.0 million in depreciation and amortization expense, and a benefit of $1.0 million due to the change in fair value of contingent consideration related to our acquisition of Shopmium. GAAP net loss in Q2 2015 was $9.3 million, which included $8.5 million in stock-based compensation expense, $3.9 million in depreciation and amortization expense, and a charge of $2.1 million due to the change in fair value of contingent consideration related to our acquisition of Eckim. Adjusted EBITDA for the three months ended June 30, 2016 was $8.1 million, as compared to $4.6 million for the comparable period in 2015.
Total revenue for the six months ended June 30, 2016 was $133.3 million, as compared to $111.4 million for the comparable period in 2015. GAAP net loss for the six months ended June 30, 2016 was $11.7 million, which included $14.9 million in stock-based compensation expense, $10.1 million in depreciation and amortization expense, and a benefit of $1.1 million due to the change in fair value of contingent consideration related to our acquisition of Shopmium. For comparison, GAAP net loss for six months ended June 30, 2015 was $13.3 million, which included $17.4 million in stock-based compensation expense, $7.8 million in depreciation and amortization expense, and a charge of $1.7 million due to the change in fair value of contingent consideration related to our acquisition of Eckim. Adjusted EBITDA for the first six months of 2016 was $12.4 million, as compared to $8.6 million for the first six months of last year.
Company Appoints Ron Fior as CFO
The Company today also announced, in a separate press release, the appointment of Ron Fior as its CFO, effective August 10, 2016. He brings more than 30 years of public and private company experience and will be responsible for all finance and information technology functions at Quotient. Mr. Fior most recently was CFO of Good Technology, a mobile security software company that was acquired by BlackBerry Inc. in 2015.
Business Highlights
Retailer iQ continues to expand
CPGs use platform to influence shoppers at the right times
Business Outlook
As of today, Quotient is providing the following business outlook.
For the third quarter 2016, total revenue is expected to be in the range of $65.0 million to $67.0 million. Adjusted EBITDA for the third quarter 2016 is expected to be in the range of $5.5 million to $6.5 million.
For the full year 2016, total revenue is expected to be in the range of $265.0 million to $270.0 million. Adjusted EBITDA for the full year 2016 is expected to be in the range of $25.0 million to $27.0 million.
A reconciliation of Adjusted EBITDA, a non-GAAP guidance measure, to a corresponding GAAP measure is not available on a forward-looking basis without unreasonable efforts due to the high variability and low visibility of certain (income) expense items that are excluded in calculating Adjusted EBITDA.
Conference Call Information
Quotient CEO Steven Boal, CFO Jennifer Ceran, and President and COO Mir Aamir will host a conference call and live webcast to discuss the Company's financial results and business outlook today at 4:30 p.m. EDT / 1:30 p.m. PDT. Questions that investors would like to see asked during the call should be sent to ir@quotient.com.
To access the call, please dial (877) 201-0168, or outside the U.S. (647) 788-4901, with Conference ID# 20910048 at least five minutes prior to the 1:30 p.m. PST start time. The live webcast and accompanying presentation can be accessed on the Investor Relations section of the Company website at: http://investors.quotient.com/. A replay of the webcast will be available on the website following the conference call.
Use of Non-GAAP Financial Measure
Quotient has presented Adjusted EBITDA, a non-GAAP financial measure, in this press release, because it is a key measure used by Quotient's management and board of directors to understand and evaluate core operating performance and trends, to prepare and approve its annual budget, to develop short and long-term operational plans, and to determine bonus payouts and executive officer compensation. In particular, the Company believes that the exclusion of the expenses eliminated in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of its core business. Additionally, Adjusted EBITDA is a key financial measure used by the compensation committee of the board of directors in connection with the determination of compensation for its executive officers. Accordingly, Quotient believes that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating the Company's operating results in the same manner as the Company's management and board of directors. Quotient defines Adjusted EBITDA as net income (loss) adjusted for interest expense, other income (expense), net, provision for (benefit from) income taxes, depreciation and amortization, stock-based compensation, gain on sale of a right to use a web domain name and change in fair value of contingent consideration.
Quotient's use of Adjusted EBITDA has limitations as an analytical tool, and should not be considered in isolation or as a substitute for analysis of the Company's financial results as reported under GAAP. Some of these limitations are:
These non-GAAP financial measures are not intended to be considered in isolation from, as substitutes for, or as superior to, the corresponding financial measures prepared in accordance with GAAP. Because of these and other limitations, Adjusted EBITDA should be considered along with other GAAP-based financial performance measures, including various cash flow metrics, net loss, and the Company's other GAAP financial results.
For a reconciliation of non-GAAP financial measures to the nearest comparable GAAP financial measures, see "Reconciliation of Net Loss to Adjusted EBITDA" included in this press release.
Forward-Looking Statements
This press release contains forward-looking statements concerning Quotient's current expectations and projections about future events and financial trends affecting its business. Forward looking statements in this press release include Quotient's current expectations with respect to revenues and Adjusted EBITDA for the third quarter and full year 2016, Quotient's expectations for the continued scaling and growth of the Retailer iQ digital platform, including expectations regarding its partner program and its ability to grow and perform and meet the expectations of consumers, retailers and CPGs, Quotient's expectations regarding the future demand and behavior of consumers, retailers and CPGs, Quotient's expectations regarding its targeted promotions and targeted media offerings and Quotient's expectations with respect to its future investments and growth and ability to leverage its investments and operating expenses. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available to Quotient's management at the date of this press release and its management's good faith belief as of such date with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause such differences include, but are not limited to, Quotient's financial performance, including its revenues, margins, costs, expenditures, growth rates and operating expenses, and its ability to generate positive cash flow and become profitable; the amount and timing of digital promotions by CPGs, which are affected by budget cycles, economic conditions and other factors; the Company's ability to adapt to changing market conditions, including the Company's ability to adapt to changes in consumer habits, including mobile device usage; seasonal variations in consumer behavior; the Company's ability to retain and expand its business with existing CPGs and retailers; the Company's ability to negotiate fee arrangements with CPGs and retailers; the impact of mobile on the Company's platform; the Company's ability to maintain and expand the use by consumers of digital promotions on its platforms and add retailers to such platforms; the Company's ability to attract and retain third-party advertising agencies, performance marketing networks distribution and channel partners, and other intermediaries; the Company's ability to effectively manage its growth; the effects of increased competition in the Company's markets and its ability to compete effectively; the Company's ability to effectively grow and train its sales team; the Company's ability to obtain new CPGs and retailers and to do so efficiently; the Company's ability to successfully integrate acquired companies into its business; the Company's ability to maintain, protect and enhance its brand and intellectual property; costs associated with defending intellectual property infringement and other claims; the Company's ability to successfully enter new markets; the Company's ability to develop and launch new services and features; the Company's ability to attract and retain qualified employees and key personnel, and other factors identified in Quotient's filings with the Securities and Exchange Commission (the "SEC"), including its quarterly report on Form 10-Q filed with the SEC on May 6, 2016. Additional information will also be set forth in Quotient's future quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings that the Company makes with the SEC. Quotient disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.
About Quotient Technology Inc.
Quotient Technology Inc. (NYSE: QUOT), formerly Coupons.com Incorporated, is a leading digital promotions and media company that connects brands, retailers and consumers. We distribute digital coupons and media through a variety of products, including: digital printable coupons, digital paperless coupons, coupon codes and card linked offers. We operate Retailer iQ, a real-time digital coupon platform that connects into a retailer's point-of-sale system and provides targeting and analytics for manufacturers and retailers. We also power digital coupon initiatives in online marketing campaigns, including display and video advertising. Our distribution network includes our flagship site, Coupons.com, our mobile applications, Coupons.com, Grocery iQ, Shopmium, and the more than 30,000 publisher partners that have registered with us. Clients include hundreds of consumer packaged goods companies, such as Clorox, Procter & Gamble, General Mills and Kellogg's, as well as top retailers like Albertsons-Safeway, CVS, Dollar General, Kroger, and Walgreens. Founded in 1998, Quotient is based in Mountain View, Calif., and is bringing the multi-billion dollar offline promotions industry into the digital world. Learn more about the company at http://quotient.com or follow us on Twitter @Quotient
QUOTIENT TECHNOLOGY INC. | |||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
(Unaudited, in thousands) | |||
|
|
|
|
| June 30,
|
| December 31,
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents | $ 131,424 |
| $ 134,947 |
Short-term investments | 25,060 |
| 25,000 |
Accounts receivable, net | 61,309 |
| 63,239 |
Prepaid expenses and other current assets | 7,826 |
| 5,297 |
Total current assets | 225,619 |
| 228,483 |
Property and equipment, net | 20,964 |
| 25,128 |
Intangible assets, net | 12,791 |
| 14,880 |
Goodwill | 43,895 |
| 43,895 |
Other assets | 7,731 |
| 8,685 |
Total assets | $ 311,000 |
| $ 321,071 |
Liabilities and Stockholders' Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable | $ 5,789 |
| $ 8,187 |
Accrued compensation and benefits | 10,931 |
| 15,237 |
Other current liabilities | 15,943 |
| 20,170 |
Deferred revenues | 7,162 |
| 7,342 |
Total current liabilities | 39,825 |
| 50,936 |
Other non-current liabilities | 263 |
| 5 |
Deferred rent | 1,903 |
| 701 |
Contingent consideration related to acquisitions | 687 |
| 1,407 |
Deferred tax liabilities | 2,621 |
| 2,532 |
Total liabilities | 45,299 |
| 55,581 |
|
|
|
|
Stockholders' equity: |
|
|
|
Common stock | 1 |
| 1 |
Additional paid-in capital | 593,516 |
| 570,588 |
Treasury stock, at cost | (96,449) |
| (85,427) |
Accumulated other comprehensive loss | (741) |
| (747) |
Accumulated deficit | (230,626) |
| (218,925) |
Total stockholders' equity | 265,701 |
| 265,490 |
Total liabilities and stockholders' equity | $ 311,000 |
| $ 321,071 |
|
|
|
|
QUOTIENT TECHNOLOGY INC. | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(Unaudited, in thousands, except per share data) | |||||||
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|
|
|
|
|
|
|
| Three Months Ended
|
| Six Months Ended
| ||||
| 2016 |
| 2015 |
| 2016 |
| 2015 |
Revenues | $67,247 |
| $55,867 |
| $133,298 |
| $111,429 |
Costs and expenses: |
|
|
|
|
|
|
|
Cost of revenues (1) | 25,162 |
| 22,122 |
| 50,374 |
| 43,989 |
Sales and marketing (1) | 22,741 |
| 21,834 |
| 47,241 |
| 42,918 |
Research and development (1) | 12,473 |
| 11,839 |
| 26,005 |
| 24,781 |
General and administrative (1) | 11,103 |
| 7,867 |
| 22,353 |
| 16,358 |
Change in fair value of contingent consideration | (966) |
| 2,076 |
| (1,068) |
| 1,722 |
Total costs and expenses | 70,513 |
| 65,738 |
| 144,905 |
| 129,768 |
Loss from operations | (3,266) |
| (9,871) |
| (11,607) |
| (18,339) |
Interest expense | — |
| (82) |
| - |
| (162) |
Gain on sale of a right to use a web domain name | — |
| — |
| - |
| 4,800 |
Other income (expense), net | (172) |
| 40 |
| 20 |
| (21) |
Loss before income taxes | (3,438) |
| (9,913) |
| (11,587) |
| (13,722) |
Provision for (benefit from) income taxes | 68 |
| (571) |
| 114 |
| (379) |
Net loss | $ (3,506) |
| $ (9,342) |
| $ (11,701) |
| $ (13,343) |
|
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Net loss per share attributable to common stockholders, basic and diluted | $ (0.04) |
| $ (0.11) |
| $ (0.14) |
| $ (0.16) |
Weighted-average number of common shares used in computing net loss per share attributable to common stockholders, basic and diluted | 83,186 |
| 82,980 |
| 82,852 |
| 82,575 |
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(1) The stock-based compensation expense included above was as follows: |
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| Three Months Ended
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| Six Months Ended
| ||||
| 2016 |
| 2015 |
| 2016 |
| 2015 |
Cost of revenues | $ 476 |
| $ 433 |
| $ 961 |
| $ 882 |
Sales and marketing | 1,508 |
| 3,432 |
| 3,072 |
| 6,373 |
Research and development | 1,624 |
| 2,266 |
| 3,847 |
| 5,050 |
General and administrative | 3,701 |
| 2,376 |
| 7,039 |
| 5,134 |
Total stock-based compensation | $ 7,309 |
| $ 8,507 |
| $ 14,919 |
| $ 17,439 |
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QUOTIENT TECHNOLOGY INC. | |||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
(Unaudited, in thousands) | |||
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| Six Months Ended
| ||
| 2016 |
| 2015 |
Cash flows from operating activities: |
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Net loss | $ (11,701) |
| $ (13,343) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
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|
Depreciation and amortization | 10,108 |
| 7,780 |
Stock-based compensation | 14,919 |
| 17,439 |
Amortization of debt issuance cost | — |
| 38 |
Loss on disposal of property and equipment | 216 |
| — |
Gain on sale of a right to use a web domain name | — |
| (4,800) |
Allowance for doubtful accounts | 151 |
| (34) |
Deferred income taxes | 114 |
| (525) |
Change in fair value of contingent consideration | (1,068) |
| 1,722 |
Changes in operating assets and liabilities: |
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|
|
Accounts receivable | 1,779 |
| 2,255 |
Prepaid expenses and other current assets | (1,645) |
| (1,213) |
Accounts payable and other current liabilities | (3,402) |
| 1,358 |
Accrued compensation and benefits | (4,306) |
| (5,391) |
Deferred revenues | (180) |
| 764 |
Net cash provided by operating activities | 4,985 |
| 6,050 |
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Cash flows from investing activities: |
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Purchases of property and equipment | (3,469) |
| (3,961) |
Purchase of intangible assets | — |
| (35) |
Purchase of short-term investment | (25,060) |
| — |
Proceeds from maturity of short-term investment | 25,000 |
| — |
Proceeds from sale of a right to use a web domain name | — |
| 4,800 |
Net cash provided by (used in) investing activities | (3,529) |
| 804 |
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Cash flows from financing activities: |
|
|
|
Proceeds from issuance of common stock | 6,066 |
| 4,218 |
Repurchases of common stock | (11,022) |
| (2,082) |
Principal payments on capital lease obligations | (26) |
| (30) |
Net cash (used in) provided by financing activities | (4,982) |
| 2,106 |
Effect of exchange rates on cash and cash equivalents | 3 |
| - |
Net (decrease) increase in cash and cash equivalents | (3,523) |
| 8,960 |
Cash and cash equivalents at beginning of period | 134,947 |
| 201,075 |
Cash and cash equivalents at end of period | $131,424 |
| $210,035 |
|
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|
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA AND TRANSACTION DATA | |||||||
(Unaudited, in thousands) | |||||||
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|
| Three Months Ended June 30, |
| Six Months Ended June 30, | ||||
| 2016 |
| 2015 |
| 2016 |
| 2015 |
Net loss | $ (3,506) |
| $ (9,342) |
| $ (11,701) |
| $(13,343) |
Adjustments: |
|
|
|
|
|
|
|
Stock-based compensation | 7,309 |
| 8,507 |
| 14,919 |
| 17,439 |
Depreciation and amortization | 4,980 |
| 3,872 |
| 10,108 |
| 7,780 |
Change in fair value of contingent consideration | (966) |
| 2,076 |
| (1,068) |
| 1,722 |
Interest expense | — |
| 82 |
| — |
| 162 |
Other (income) expense, net | 172 |
| (40) |
| (20) |
| 21 |
Provision for (benefit from) income taxes | 68 |
| (571) |
| 114 |
| (379) |
Gain on sale of a right to use a web domain name | — |
| — |
| — |
| (4,800) |
|
|
|
|
|
|
|
|
Total adjustments | $11,563 |
| $13,926 |
| $ 24,053 |
| $ 21,945 |
|
|
|
|
|
|
|
|
Adjusted EBITDA | $ 8,057 |
| $ 4,584 |
| $ 12,352 |
| $ 8,602 |
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|
|
|
|
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|
|
Transactions (1) | 534,854 |
| 372,006 |
| 1,072,039 |
| 784,647 |
|
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(1) A transaction is any action that generates revenue, directly or indirectly, including per item transaction fees, revenue sharing fees, set up fees and volume-based fixed fees. Transactions exclude self-generated retailer offers where no revenue is received. | |||||||
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CONTACT: Investor Relations Contact: Stacie Clements, Vice President, Investor Relations, Phone: 650-605-4535, ir@quotient.com; Media Contact: Paul Sloan, Vice President, Communications, Phone: 650-396-8754, press@quotient.com