UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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): February 15, 2012
TANGOE, INC.
(Exact Name of Registrant as Specified in Charter)
|
Delaware |
|
001-35247 |
|
06-1571143 |
|
(State or Other Jurisdiction of |
|
(Commission |
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(IRS Employer |
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35 Executive Blvd., Orange, Connecticut |
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06477 |
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(Address of Principal Executive Offices) |
|
(Zip Code) |
Registrant’s telephone number, including area code: (203) 859-9300
(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):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o 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 February 15, 2012, Tangoe, Inc. (the “Company”) announced its financial results for the quarter and fiscal year ended December 31, 2011. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information in this Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
The following exhibit relating to Item 2.02 shall be deemed to be furnished, and not filed:
99.1 Press Release entitled “Tangoe, Inc. Announces Fourth Quarter and Full Year 2011 Financial Results” issued by the Company on February 15, 2012.
SIGNATURE
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.
Date: February 15, 2012
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By: |
/s/ Albert R. Subbloie, Jr. |
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Albert R. Subbloie, Jr. |
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|
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President and Chief Executive Officer |
Exhibit 99.1
For Immediate Release
Tangoe, Inc. Announces Fourth Quarter and Full Year 2011 Financial Results
Fourth Quarter Highlights:
· Total revenue of $29.2 million, up 57% year-over-year
· GAAP operating income of $1.2 million; non-GAAP operating income of $3.3 million, up 97% year-over-year
· GAAP net income of $0.9 million; non-GAAP net income of $3.0 million
· Adjusted EBITDA of $3.7 million, up 87% year-over-year and a record quarterly adjusted EBITDA margin of 12.6%
Orange, Conn., February 15, 2012 — Tangoe, Inc. (NASDAQ: TNGO), a leading global provider of Communications Lifecycle Management (“CLM”) software and related services, today announced financial results for its fourth quarter and full year ended December 31, 2011.
“The fourth quarter marked a strong finish to 2011, as we exceeded the high end of guidance across all of our key operating metrics,” stated Albert Subbloie, president and CEO of Tangoe. “For the quarter and full year 2011, Tangoe continued to gain significant market share through a combination of organic growth and strategic acquisitions. Our momentum is being driven by a combination of new customer wins, strong cross-sell activity, best-in-class renewal rates and growing traction with our strategic alliance partners.”
Subbloie added, “The recent acquisitions of ProfitLine and Anomalous Networks have expanded our value proposition, customer base and distribution channels. We believe these strategic moves add to our strong business momentum as we begin 2012, and further enhance our ability to capitalize on the multi-billion dollar CLM market opportunity.”
Fourth Quarter 2011 Financial Highlights
· Revenue: Total revenue for the fourth quarter was $29.2 million, an increase of 57% on a year-over-year basis. Recurring technology and services revenue was $25.8 million, an increase of 61% on a year-over-year basis. Strategic consulting, software licenses and other services contributed the remaining $3.4 million of total revenue for the fourth quarter of 2011.
· Operating Income: GAAP operating income for the fourth quarter was $1.2 million, compared to operating income of $0.3 million for the fourth quarter of 2010. Non-GAAP operating income was $3.3 million, representing a record quarterly non-GAAP operating margin of 11.4% and an increase of 97% compared to $1.7 million for the fourth quarter of 2010.
· Net Income (Loss): GAAP net income for the fourth quarter was $0.9 million, compared to a $0.5 million net loss for the same period last year. GAAP diluted income per share for the fourth quarter was $0.02, based on 38.5 million weighted-average diluted shares outstanding, compared to a loss per share of $0.33, after deducting dividends and accretion related to our preferred stock and based on 4.5 million weighted-average shares outstanding for the same period last year.
Non-GAAP net income for the fourth quarter was $3.0 million, up 157% compared to $1.2 million for the fourth quarter of 2010. Non-GAAP diluted net income per share for the fourth quarter was $0.08 based on 38.5 million weighted-average diluted shares outstanding, an increase of 100% compared to $0.04 per share based on 29.0 million weighted-average diluted shares outstanding for the same period last year.
· Adjusted EBITDA: Adjusted EBITDA for the fourth quarter was $3.7 million, an increase of 87% compared to $2.0 million for the fourth quarter of 2010. Adjusted EBITDA margin was a record 12.6% for the fourth quarter of 2011, an increase compared to a 10.6% margin for the same period last year.
· Cash and Cash Flow: As of December 31, 2011, Tangoe had cash and cash equivalents of $43.4 million, compared to $52.5 million at the end of the prior quarter. During the fourth quarter, the company used $14.5 million in cash related to the acquisition of ProfitLine.
The company generated $4.8 million in net cash from operations for the fourth quarter of 2011, compared to $1.3 million during the fourth quarter of 2010. The Company generated $4.4 million in unlevered free cash flow for the quarter, an increase of 103% compared to $2.2 million during the fourth quarter of 2010.
Full Year 2011 Financial Highlights
· Revenue: Total revenue for the full year 2011 was $104.9 million, an increase of 53% on a year-over-year basis. Recurring technology and services revenue was $93.7 million, an increase of 62% on a year-over-year basis. Strategic consulting, software licenses and other services contributed the remaining $11.2 million of total revenue for 2011.
· Operating Income: GAAP operating income for the full year 2011 was $2.6 million, compared to operating income of $1.4 million for 2010. Non-GAAP operating income was $11.3 million, representing a record annual non-GAAP operating margin of 10.8% and an increase of 95% compared to $5.8 million for 2010.
· Net Income (Loss): GAAP net loss for the full year 2011 was $3.0 million, compared to a $1.8 million net loss for 2010. GAAP loss per share after deducting dividends and accretion related to our preferred stock was $0.31 based on 16.4 million weighted-average shares outstanding for the full year 2011, compared to a loss per share of $1.26 based on 4.4 million weighted-average shares outstanding for 2010.
Non-GAAP net income for the full year 2011 was $8.8 million, up 152% compared to $3.5 million for 2010. Non-GAAP net income per share for 2011
was $0.26 based on 33.5 million weighted-average diluted shares outstanding, an increase of 117% compared to $0.12 per share based on 28.8 million weighted-average diluted shares outstanding for 2010.
· Adjusted EBITDA: Adjusted EBITDA for the full year 2011 was $12.7 million, an increase of 84% compared to $6.9 million for 2010. Adjusted EBITDA margin was a record 12.1% for 2011, an increase compared to a 10.0% margin for 2010.
· Cash Flow: The Company generated $10.1 million in net cash from operations during the full year 2011, compared to $3.4 million in 2010. The Company generated $10.6 million in unlevered free cash flow for 2011, an increase of 97% compared to $5.4 million for 2010.
A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”
Financial Outlook
As of February 15, 2012 Tangoe is providing guidance for its first quarter and full year 2012 as follows:
· First Quarter 2012 Guidance: Total revenue is expected to be in the range of $32.2 million to $32.7 million. Adjusted EBITDA is expected to be in the range of $3.5 million to $3.7 million. Non-GAAP net income per share is expected to be approximately $0.08 based on approximately 39.0 million weighted-average diluted shares outstanding.
· Full Year 2012 Guidance: Total revenue is expected to be in the range of $137.0 million to $139.0 million. Adjusted EBITDA is expected to be in the range of $19.5 million to $20.0 million. Non-GAAP net income per share is expected to be in the range of $0.41 to $0.42 based on approximately 39.5 million weighted-average diluted shares outstanding.
Quarterly Conference Call
Tangoe will host a conference call today at 5:00 p.m. EDT to review the company’s financial results for the fourth quarter and full year 2011 as well as guidance for the first quarter and full year 2012. To access this call, dial 866.719.0110 (United States), or 719.325.2359 (international), with conference ID # 3446030. A live webcast of the conference call will be accessible from the investor relations page of Tangoe’s website at http://investor.tangoe.com/, and a recording will be archived and accessible at http://investor.tangoe.com/events.cfm. A recording of this conference call will also be available through February 29, 2012, by dialing 877.870.5176 (United States), or 858.384.5517 (international). The recording access code is 3446030.
About Tangoe
Tangoe is a leading global provider of Communications Lifecycle Management (CLM) software and services to a wide range of global enterprises. CLM encompasses the entire lifecycle of an enterprise’s communications assets and services, including planning and sourcing, procurement and provisioning, inventory and usage management, invoice processing, expense allocation and accounting and asset decommissioning and disposal. Tangoe’s Communications Management Platform (CMP) is an on-demand suite of software designed to manage and optimize the complex processes and expenses associated with this lifecycle for both fixed and mobile communications assets and services. Tangoe’s customers can also manage their communications assets and services by engaging Tangoe’s client service group.
Additional information about Tangoe can be found at www.tangoe.com. Tangoe is a registered trademark of Tangoe, Inc.
Non-GAAP Financial Measures
Adjusted EBITDA discussed in this press release is defined as net income (loss) plus interest expense, income tax provision, depreciation and amortization, restructuring charge, stock-based compensation expense, decrease (increase) in fair value of warrants for redeemable convertible preferred stock and, for 2012, decrease (increase)
in fair value of shares of common stock issued subject to an earn-out as part of the purchase price for an acquisition and excluding contra-revenue attributable to the value of common stock warrants issued to a reseller partner; less interest income and other income. Non-GAAP operating income excludes stock-based compensation expense, restructuring charge, amortization of intangible assets, deferred financing costs and, for 2012, contra-revenue attributable to value of common stock warrants issued to a reseller partner. Non-GAAP net income excludes stock-based compensation expense, amortization of intangible assets and deferred financing costs, restructuring charge, loan repayment fee, term loan debt discount, decrease (increase) in fair value of warrants for redeemable convertible preferred stock and, for 2012, decrease (increase) in fair value of shares of common stock issued subject to an earn-out as part of the purchase price for an acquisition and contra-revenue attributable to the value of common stock warrants issued to a reseller partner. Unlevered free cash flow is defined as net cash provided by operating activities plus net interest payments and IPO related expense payments less capital expenditures. Management presents these non-GAAP financial measures because it considers them to be important supplemental measures of performance. Management uses the non-GAAP financial measures for planning purposes, including analysis of the Company’s performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management also believes that the non-GAAP financial measures provide additional insight for analysts and investors in evaluating the Company’s financial and operational performance. However, these non-GAAP financial measures have limitations as an analytical tool and are not intended to be an alternative to financial measures prepared in accordance with GAAP. We intend to provide these non-GAAP financial measures as part of our future earnings discussions and, therefore, the inclusion of these non-GAAP financial measures will provide consistency in our financial reporting. A reconciliation of these non-GAAP measures to GAAP is provided in the accompanying tables.
Forward Looking Statement
This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans and objectives of management are forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “would,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include, among other things, statements about, our estimates regarding future revenue and financial performance. We may not actually achieve the expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the expectations disclosed in the forward-looking statements we make. More information about potential factors that could affect our business and financial results is contained in our Quarterly Report on Form 10-Q as filed with the Securities and Exchange Commission on November 14, 2011. Additional information will also be set forth in our future quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings that we make with the Securities and Exchange Commission. We do not intend, and undertake no duty, to release publicly any updates or revisions to any forward-looking statements contained herein.
TANGOE, Inc.
Consolidated Statements of Operations (unaudited)
(in thousands, except per share amounts)
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Three Months Ended |
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Twelve Months Ended |
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December 31, |
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December 31, |
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2010 |
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2011 |
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2010 |
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2011 |
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Revenue: |
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|
|
|
|
|
|
|
| ||||
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Recurring technology and services |
|
$ |
15,982 |
|
$ |
25,778 |
|
$ |
57,703 |
|
$ |
93,671 |
|
|
Strategic consulting, software licenses and other |
|
2,694 |
|
3,463 |
|
10,771 |
|
11,270 |
| ||||
|
Total revenue |
|
18,676 |
|
29,241 |
|
68,474 |
|
104,941 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Cost of revenue: |
|
|
|
|
|
|
|
|
| ||||
|
Recurring technology and services |
|
7,172 |
|
12,397 |
|
26,349 |
|
44,814 |
| ||||
|
Strategic consulting, software licenses and other |
|
994 |
|
1,532 |
|
3,874 |
|
5,165 |
| ||||
|
Total cost of revenue |
|
8,166 |
|
13,929 |
|
30,223 |
|
49,979 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
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Gross profit |
|
10,510 |
|
15,312 |
|
38,251 |
|
54,962 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
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Operating expenses: |
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|
|
|
|
|
|
|
| ||||
|
Sales and marketing |
|
3,415 |
|
4,874 |
|
12,281 |
|
16,648 |
| ||||
|
General and administrative |
|
3,461 |
|
4,922 |
|
11,709 |
|
17,777 |
| ||||
|
Research and development |
|
2,419 |
|
3,142 |
|
9,321 |
|
11,860 |
| ||||
|
Depreciation and amortization |
|
919 |
|
1,171 |
|
3,529 |
|
4,551 |
| ||||
|
Restructuring charge |
|
— |
|
— |
|
— |
|
1,549 |
| ||||
|
Income from operations |
|
296 |
|
1,203 |
|
1,411 |
|
2,577 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Other income (expense), net |
|
|
|
|
|
|
|
|
| ||||
|
Interest expense |
|
(406 |
) |
(184 |
) |
(2,007 |
) |
(3,047 |
) | ||||
|
Interest income |
|
4 |
|
24 |
|
19 |
|
45 |
| ||||
|
Other income |
|
3 |
|
— |
|
3 |
|
— |
| ||||
|
Increase in fair value of warrants for redeemable convertible preferred stock |
|
(323 |
) |
— |
|
(884 |
) |
(1,996 |
) | ||||
|
Loss before income tax provision |
|
(426 |
) |
1,043 |
|
(1,458 |
) |
(2,421 |
) | ||||
|
Income tax provision |
|
114 |
|
140 |
|
295 |
|
534 |
| ||||
|
Net (loss) income |
|
(540 |
) |
903 |
|
(1,753 |
) |
(2,955 |
) | ||||
|
Preferred dividends |
|
(930 |
) |
— |
|
(3,715 |
) |
(2,168 |
) | ||||
|
Accretion of redeemable convertible preferred stock |
|
(16 |
) |
— |
|
(64 |
) |
(37 |
) | ||||
|
Loss applicable to common stockholders |
|
$ |
(1,486 |
) |
$ |
903 |
|
$ |
(5,532 |
) |
$ |
(5,160 |
) |
|
|
|
|
|
|
|
|
|
|
| ||||
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Net income (loss) per common share: |
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|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
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Basic |
|
$ |
(0.33 |
) |
$ |
0.03 |
|
$ |
(1.26 |
) |
$ |
(0.31 |
) |
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|
|
|
|
|
|
|
|
|
| ||||
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Diluted |
|
$ |
(0.33 |
) |
$ |
0.02 |
|
$ |
(1.26 |
) |
$ |
(0.31 |
) |
|
|
|
|
|
|
|
|
|
|
| ||||
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Weighted average number of common share: |
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|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Basic |
|
4,511 |
|
32,972 |
|
4,399 |
|
16,412 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Diluted |
|
4,511 |
|
38,493 |
|
4,399 |
|
16,412 |
| ||||
TANGOE, INC.
Consolidated Balance Sheets
(in thousands)
|
|
|
December 31, |
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|
|
|
2010 |
|
2011 |
| ||
|
|
|
|
|
(Unaudited) |
| ||
|
ASSETS |
|
|
|
|
| ||
|
CURRENT ASSETS: |
|
|
|
|
| ||
|
Cash and cash equivalents |
|
$ |
5,913 |
|
$ |
43,407 |
|
|
Accounts receivable |
|
14,295 |
|
25,311 |
| ||
|
Prepaid expenses and other current assets |
|
1,395 |
|
2,503 |
| ||
|
Total current assets |
|
21,603 |
|
71,221 |
| ||
|
COMPUTERS, FURNITURE AND EQUIPMENT-NET |
|
1,795 |
|
3,334 |
| ||
|
|
|
|
|
|
| ||
|
OTHER ASSETS: |
|
|
|
|
| ||
|
Intangible assets-net |
|
15,785 |
|
28,800 |
| ||
|
Goodwill |
|
17,636 |
|
36,266 |
| ||
|
Security deposits and other non-current assets |
|
1,925 |
|
1,241 |
| ||
|
TOTAL ASSETS |
|
$ |
58,744 |
|
$ |
140,862 |
|
|
|
|
|
|
|
| ||
|
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY |
|
|
|
|
| ||
|
CURRENT LIABILITIES: |
|
|
|
|
| ||
|
Accounts payable |
|
$ |
3,303 |
|
$ |
6,605 |
|
|
Accrued expenses |
|
3,364 |
|
7,061 |
| ||
|
Deferred revenue-current portion |
|
8,304 |
|
9,051 |
| ||
|
Notes payable-current portion |
|
6,345 |
|
7,904 |
| ||
|
Other current liabilities |
|
— |
|
1,079 |
| ||
|
Total current liabilities |
|
21,316 |
|
31,700 |
| ||
|
|
|
|
|
|
| ||
|
OTHER LIABILITIES: |
|
|
|
|
| ||
|
Deferred rent and other non-current liabilities |
|
3,099 |
|
1,659 |
| ||
|
Deferred revenue-less current portion |
|
1,788 |
|
2,624 |
| ||
|
Notes payable-less current portion |
|
11,777 |
|
8,290 |
| ||
|
Warrants for redeemable convertible preferred stock |
|
1,345 |
|
— |
| ||
|
Total liabilities |
|
39,325 |
|
44,273 |
| ||
|
|
|
|
|
|
| ||
|
REDEEMABLE CONVERTIBLE PREFERRED STOCK |
|
61,441 |
|
— |
| ||
|
|
|
|
|
|
| ||
|
COMMITMENT AND CONTINGENCIES |
|
|
|
|
| ||
|
|
|
|
|
|
| ||
|
STOCKHOLDERS’ (DEFICIT) EQUITY |
|
|
|
|
| ||
|
Preferred Stock |
|
366 |
|
— |
| ||
|
Common Stock |
|
— |
|
3 |
| ||
|
Additional paid-in capital |
|
7,317 |
|
142,905 |
| ||
|
Warrants for common stock |
|
2,022 |
|
10,610 |
| ||
|
Less: notes receivable for purchase of common stock |
|
(93 |
) |
(93 |
) | ||
|
Accumulated deficit |
|
(51,635 |
) |
(56,795 |
) | ||
|
Other comprehensive income (loss) |
|
1 |
|
(41 |
) | ||
|
Total stockholders’ (deficit) equity |
|
(42,022 |
) |
96,589 |
| ||
|
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY |
|
$ |
58,744 |
|
$ |
140,862 |
|
TANGOE, Inc.
Condensed Consolidated Statements of Cash Flows (unaudited)
(in thousands)
|
|
|
For the Years Ended |
| ||||
|
|
|
December 31, |
| ||||
|
|
|
2010 |
|
2011 |
| ||
|
Operating activities: |
|
|
|
|
| ||
|
Net loss |
|
$ |
(1,753 |
) |
$ |
(2,955 |
) |
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
| ||
|
Amortization of debt discount |
|
47 |
|
1,339 |
| ||
|
Depreciation and amortization |
|
3,529 |
|
4,551 |
| ||
|
Restructuring charge |
|
— |
|
1,549 |
| ||
|
Decrease in deferred rent liability |
|
(493 |
) |
(58 |
) | ||
|
Amortization of marketing agreement intangible assets |
|
26 |
|
92 |
| ||
|
Allowance for doubtful accounts |
|
207 |
|
23 |
| ||
|
Deferred income taxes |
|
190 |
|
305 |
| ||
|
Stock based compensation expense |
|
1,928 |
|
3,980 |
| ||
|
Increase in fair value of warrants for redeemable convertible preferred stock |
|
884 |
|
1,996 |
| ||
|
Changes in assets and liabilities, net of acquisitions: |
|
|
|
|
| ||
|
Accounts receivable |
|
(2,986 |
) |
(4,437 |
) | ||
|
Prepaid expenses and other assets |
|
(501 |
) |
47 |
| ||
|
Other assets |
|
(1,181 |
) |
(381 |
) | ||
|
Accounts payable |
|
172 |
|
3,054 |
| ||
|
Accrued expenses |
|
1,079 |
|
(184 |
) | ||
|
Deferred revenue |
|
2,252 |
|
1,226 |
| ||
|
Net cash provided by operating activities |
|
3,400 |
|
10,147 |
| ||
|
Investing activities: |
|
|
|
|
| ||
|
Purchases of computers, furniture and equipment |
|
(367 |
) |
(853 |
) | ||
|
Cash paid in connection with acquisitions, net of cash received |
|
— |
|
(22,194 |
) | ||
|
Net cash used in investing activities |
|
(367 |
) |
(23,047 |
) | ||
|
Financing activities: |
|
|
|
|
| ||
|
Repayment of debt |
|
(8,562 |
) |
(38,018 |
) | ||
|
Borrowings of debt |
|
5,500 |
|
20,000 |
| ||
|
Payment of settlement liability |
|
(200 |
) |
— |
| ||
|
Payment of debt in connection with acquisition |
|
(952 |
) |
— |
| ||
|
Payment made to repurchase securities as a result of litigation settlement |
|
— |
|
— |
| ||
|
Proceeds from initial public offering, net of issuance costs |
|
— |
|
66,989 |
| ||
|
Proceeds from warrant exercises |
|
— |
|
192 |
| ||
|
Proceeds from repayment of notes receivable |
|
691 |
|
— |
| ||
|
Deferred financing costs |
|
(60 |
) |
(170 |
) | ||
|
Proceeds from exercise of options |
|
300 |
|
1,401 |
| ||
|
Net cash (used in) provided by financing activities |
|
(3,283 |
) |
50,394 |
| ||
|
|
|
|
|
|
| ||
|
Net (decrease) increase in cash and cash equivalents |
|
(250 |
) |
37,494 |
| ||
|
Cash and cash equivalents, beginning of period |
|
6,163 |
|
5,913 |
| ||
|
Cash and cash equivalents, end of period |
|
$ |
5,913 |
|
$ |
43,407 |
|
TANGOE, Inc.
Calculation of Non-GAAP Operating Income (Unaudited)
(in thousands)
|
|
|
Three Months Ended |
|
Year Ended |
| ||||||||||||||||
|
|
|
December 31, |
| ||||||||||||||||||
|
|
|
2010 |
|
2011 |
|
2010 |
|
2011 |
| ||||||||||||
|
|
|
|
|
% of |
|
|
|
% of |
|
|
|
% of |
|
|
|
% of |
| ||||
|
|
|
Amount |
|
Revenue |
|
Amount |
|
Revenue |
|
Amount |
|
Revenue |
|
Amount |
|
Revenue |
| ||||
|
Income from operations |
|
$ |
296 |
|
1.6 |
% |
$ |
1,203 |
|
4.1 |
% |
$ |
1,411 |
|
2.1 |
% |
$ |
2,577 |
|
2.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Stock based compensation expense |
|
760 |
|
4.1 |
% |
1,316 |
|
4.5 |
% |
1,928 |
|
2.8 |
% |
3,980 |
|
3.8 |
% | ||||
|
Restructuring charge |
|
— |
|
0.0 |
% |
— |
|
0.0 |
% |
— |
|
0.0 |
% |
1,549 |
|
1.5 |
% | ||||
|
Amortization of intangibles |
|
553 |
|
3.0 |
% |
801 |
|
2.7 |
% |
2,276 |
|
3.3 |
% |
2,960 |
|
2.8 |
% | ||||
|
Amortization of deferred financing costs |
|
79 |
|
0.4 |
% |
— |
|
0.0 |
% |
162 |
|
0.2 |
% |
227 |
|
0.2 |
% | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Non-GAAP income from operations |
|
$ |
1,688 |
|
9.0 |
% |
$ |
3,320 |
|
11.4 |
% |
$ |
5,777 |
|
8.4 |
% |
$ |
11,293 |
|
10.8 |
% |
TANGOE, Inc.
Reconciliation of Net Loss to Adjusted EBITDA (Unaudited)
(in thousands)
|
|
|
Three Months Ended |
|
Year Ended |
| ||||||||||||||||
|
|
|
December 31, |
| ||||||||||||||||||
|
|
|
2010 |
|
2011 |
|
2010 |
|
2011 |
| ||||||||||||
|
|
|
|
|
% of |
|
|
|
% of |
|
|
|
% of |
|
|
|
% of |
| ||||
|
|
|
Amount |
|
Revenue |
|
Amount |
|
Revenue |
|
Amount |
|
Revenue |
|
Amount |
|
Revenue |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Net income (loss) |
|
$ |
(540 |
) |
-2.9 |
% |
$ |
903 |
|
3.1 |
% |
$ |
(1,753 |
) |
-2.6 |
% |
$ |
(2,955 |
) |
-2.8 |
% |
|
Interest expense |
|
406 |
|
2.2 |
% |
184 |
|
0.6 |
% |
2,007 |
|
2.9 |
% |
3,047 |
|
2.9 |
% | ||||
|
Interest income |
|
(7 |
) |
0.0 |
% |
(24 |
) |
-0.1 |
% |
(22 |
) |
0.0 |
% |
(45 |
) |
0.0 |
% | ||||
|
Income tax provision |
|
114 |
|
0.6 |
% |
140 |
|
0.5 |
% |
295 |
|
0.4 |
% |
534 |
|
0.5 |
% | ||||
|
Depreciation and amortization |
|
919 |
|
4.9 |
% |
1,171 |
|
4.0 |
% |
3,529 |
|
5.2 |
% |
4,551 |
|
4.3 |
% | ||||
|
Stock based compensation expense |
|
760 |
|
4.1 |
% |
1,316 |
|
4.5 |
% |
1,928 |
|
2.8 |
% |
3,980 |
|
3.8 |
% | ||||
|
Restructuring charge |
|
— |
|
0.0 |
% |
— |
|
0.0 |
% |
— |
|
0.0 |
% |
1,549 |
|
1.5 |
% | ||||
|
Increase in fair value of warrants for redeemable convertible preferred stock |
|
323 |
|
1.7 |
% |
— |
|
0.0 |
% |
884 |
|
1.3 |
% |
1,996 |
|
1.9 |
% | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Adjusted EBITDA |
|
$ |
1,975 |
|
10.6 |
% |
$ |
3,690 |
|
12.6 |
% |
$ |
6,868 |
|
10.0 |
% |
$ |
12,657 |
|
12.1 |
% |
TANGOE, Inc.
Calculation of Non-GAAP Net Income and Non-GAAP Net Income per Share (Unaudited)
(in thousands, except per share data)
|
|
|
Three Months Ended |
|
Year Ended |
| ||||||||
|
|
|
December 31, |
| ||||||||||
|
|
|
2010 |
|
2011 |
|
2010 |
|
2011 |
| ||||
|
Net income (loss) |
|
$ |
(540 |
) |
$ |
903 |
|
$ |
(1,753 |
) |
$ |
(2,955 |
) |
|
|
|
|
|
|
|
|
|
|
| ||||
|
Add: |
|
|
|
|
|
|
|
|
| ||||
|
Stock based compensation expense |
|
760 |
|
1,316 |
|
1,928 |
|
3,980 |
| ||||
|
Restructuring charge |
|
— |
|
— |
|
— |
|
1,549 |
| ||||
|
Amortization of intangibles |
|
553 |
|
801 |
|
2,276 |
|
2,960 |
| ||||
|
Amortization of deferred financing costs |
|
79 |
|
— |
|
162 |
|
227 |
| ||||
|
Increase in fair value of warrants for redeemable convertible preferred stock |
|
323 |
|
— |
|
884 |
|
1,996 |
| ||||
|
Orix loan repayment fee |
|
— |
|
— |
|
— |
|
400 |
| ||||
|
Term loan debt discount |
|
— |
|
— |
|
— |
|
641 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Non-GAAP net income |
|
$ |
1,175 |
|
$ |
3,020 |
|
$ |
3,497 |
|
$ |
8,798 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Non-GAAP net income per share: diluted |
|
$ |
0.04 |
|
$ |
0.08 |
|
$ |
0.12 |
|
$ |
0.26 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Fully diluted weighted average shares outstanding |
|
28,967 |
|
38,493 |
|
28,772 |
|
33,503 |
| ||||
TANGOE, Inc.
Stock Based Compensation Expense (Unaudited)
(in thousands)
|
|
|
Three Months Ended |
|
Year Ended |
| ||||||||
|
|
|
December 31, |
| ||||||||||
|
|
|
2010 |
|
2011 |
|
2010 |
|
2011 |
| ||||
|
Cost of revenue |
|
128 |
|
170 |
|
323 |
|
669 |
| ||||
|
Sales and marketing |
|
165 |
|
612 |
|
425 |
|
1,201 |
| ||||
|
General and administrative |
|
412 |
|
487 |
|
1,032 |
|
1,934 |
| ||||
|
Research and development |
|
55 |
|
47 |
|
148 |
|
176 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
760 |
|
$ |
1,316 |
|
$ |
1,928 |
|
$ |
3,980 |
|
TANGOE, Inc.
Calculation of Unlevered Free Cash Flow (Unaudited)
(in thousands)
|
|
|
Three Months Ended |
|
Year Ended |
| ||||||||
|
|
|
December 31, |
| ||||||||||
|
|
|
2010 |
|
2011 |
|
2010 |
|
2011 |
| ||||
|
Net cash provided by operating activities |
|
$ |
1,257 |
|
$ |
4,836 |
|
$ |
3,400 |
|
$ |
10,147 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Add: |
|
|
|
|
|
|
|
|
| ||||
|
Interest payments, net |
|
438 |
|
20 |
|
2,045 |
|
1,620 |
| ||||
|
IPO Expense payments |
|
738 |
|
— |
|
1,089 |
|
466 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Subtract: |
|
|
|
|
|
|
|
|
| ||||
|
Capital Expenditures |
|
268 |
|
451 |
|
1,125 |
|
1,599 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Unlevered Free Cash Flow |
|
$ |
2,165 |
|
$ |
4,405 |
|
$ |
5,409 |
|
$ |
10,634 |
|
Investor Contact:
Seth Potter
ICR
512.344.0277
ir@tangoe.com
Media Contact:
Kristin Conforti
PAN Communications, Inc.
617.502.4300
tangoe@pancomm.com