Tableau Software, Inc. | ||
(Exact name of registrant as specified in its charter) | ||
Delaware | 001-35925 | 47-0945740 |
(State or other jurisdiction | (Commission File Number) | (IRS Employer Identification No.) |
of incorporation) | ||
1621 North 34th Street Seattle, Washington | 98103 | |
(Address of principal executive offices) | (Zip Code) | |
Registrant's telephone number, including area code: (206) 633-3400 | ||
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)) |
Emerging growth company | o |
Tableau Software, Inc. | |
/s/ Keenan M. Conder | |
Keenan M. Conder | |
Executive Vice President, General Counsel and Corporate Secretary |
• | ASC 606 total revenue was $282.3 million. |
• | Total annual recurring revenue was $697.7 million, up 44% year over year. |
• | Subscription annual recurring revenue was $291.3 million, up 181% year over year. |
• | ASC 606 diluted GAAP net loss per share was $0.15. |
• | ASC 606 diluted non-GAAP net income per share was $0.41. |
• | ASC 605 total revenue was $243.6 million, compared to a guided range of $230.0 million to $240.0 million as provided during the Company's earnings call on May 2, 2018. |
• | ASC 605 diluted GAAP net loss per share was $0.72. |
• | ASC 605 diluted non-GAAP net loss per share was $0.00, compared to a guided range of $0.08 to $0.15 non-GAAP net loss per share as provided during the Company's earnings call on May 2, 2018. |
• | Acquired Empirical Systems, Inc., a startup specializing in automated statistical analysis that originated at the Massachusetts Institute of Technology's Probabilistic Computing Project. |
• | Announced the appointment of Damon Fletcher as Chief Financial Officer. |
• | Released Tableau 2018.2, which further opens Tableau's platform to developers with a new Extensions API and also includes Tableau Services Manager, which gives customers a direct way to manage their Tableau Server deployments. |
• | Hosted Tableau Conference Europe, with over 1,800 customers and partners in London for Tableau's largest international conference to date. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenues | |||||||||||||||
License | $ | 137,848 | $ | 103,296 | $ | 246,641 | $ | 200,540 | |||||||
Maintenance and services | 144,441 | 109,584 | 281,855 | 212,246 | |||||||||||
Total revenues | 282,289 | 212,880 | 528,496 | 412,786 | |||||||||||
Cost of revenues | |||||||||||||||
License | 4,626 | 2,942 | 8,580 | 6,209 | |||||||||||
Maintenance and services | 30,599 | 23,723 | 59,070 | 47,111 | |||||||||||
Total cost of revenues (1) | 35,225 | 26,665 | 67,650 | 53,320 | |||||||||||
Gross profit | 247,064 | 186,215 | 460,846 | 359,466 | |||||||||||
Operating expenses | |||||||||||||||
Sales and marketing (1) | 144,150 | 124,160 | 282,556 | 242,178 | |||||||||||
Research and development (1) | 94,033 | 81,067 | 187,538 | 165,369 | |||||||||||
General and administrative (1) | 29,846 | 25,875 | 62,096 | 50,320 | |||||||||||
Total operating expenses | 268,029 | 231,102 | 532,190 | 457,867 | |||||||||||
Operating loss | (20,965 | ) | (44,887 | ) | (71,344 | ) | (98,401 | ) | |||||||
Other income, net | 6,866 | 4,029 | 8,328 | 5,254 | |||||||||||
Loss before income tax expense (benefit) | (14,099 | ) | (40,858 | ) | (63,016 | ) | (93,147 | ) | |||||||
Income tax expense (benefit) | (2,033 | ) | 1,664 | (4,478 | ) | 4,022 | |||||||||
Net loss | $ | (12,066 | ) | $ | (42,522 | ) | $ | (58,538 | ) | $ | (97,169 | ) | |||
Net loss per share: | |||||||||||||||
Basic | $ | (0.15 | ) | $ | (0.54 | ) | $ | (0.72 | ) | $ | (1.25 | ) | |||
Diluted | $ | (0.15 | ) | $ | (0.54 | ) | $ | (0.72 | ) | $ | (1.25 | ) | |||
Weighted average shares used to compute net loss per share: | |||||||||||||||
Basic | 82,247 | 78,511 | 81,647 | 77,966 | |||||||||||
Diluted | 82,247 | 78,511 | 81,647 | 77,966 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Cost of revenues | $ | 3,299 | $ | 2,790 | $ | 6,286 | $ | 5,367 | |||||||
Sales and marketing | 22,150 | 18,526 | 42,165 | 36,618 | |||||||||||
Research and development | 26,837 | 25,648 | 51,994 | 49,163 | |||||||||||
General and administrative | 6,026 | 5,150 | 13,630 | 10,161 |
June 30, 2018 | December 31, 2017 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 611,091 | $ | 627,878 | |||
Short-term investments | 301,054 | 226,787 | |||||
Accounts receivable, net | 170,907 | 203,366 | |||||
Prepaid expenses and other current assets | 115,605 | 30,514 | |||||
Income taxes receivable | 778 | 673 | |||||
Total current assets | 1,199,435 | 1,089,218 | |||||
Long-term investments | 89,991 | 148,364 | |||||
Property and equipment, net | 95,603 | 106,753 | |||||
Goodwill | 42,530 | 35,083 | |||||
Deferred income taxes | 4,072 | 5,287 | |||||
Other long-term assets | 41,626 | 14,090 | |||||
Total assets | $ | 1,473,257 | $ | 1,398,795 | |||
Liabilities and stockholders' equity | |||||||
Current liabilities | |||||||
Accounts payable | $ | 3,829 | $ | 4,448 | |||
Accrued compensation and employee-related benefits | 75,129 | 96,390 | |||||
Other accrued liabilities | 54,745 | 37,722 | |||||
Income taxes payable | 1,986 | 4,743 | |||||
Deferred revenue | 320,305 | 419,426 | |||||
Total current liabilities | 455,994 | 562,729 | |||||
Deferred revenue | 15,615 | 28,058 | |||||
Other long-term liabilities | 53,686 | 54,385 | |||||
Total liabilities | 525,295 | 645,172 | |||||
Stockholders' equity | |||||||
Common stock | 8 | 8 | |||||
Additional paid-in capital | 1,256,854 | 1,168,563 | |||||
Accumulated other comprehensive loss | (11,811 | ) | (11,991 | ) | |||
Accumulated deficit | (297,089 | ) | (402,957 | ) | |||
Total stockholders' equity | 947,962 | 753,623 | |||||
Total liabilities and stockholders' equity | $ | 1,473,257 | $ | 1,398,795 |
Six Months Ended June 30, | |||||||
2018 | 2017 | ||||||
Operating activities | |||||||
Net loss | $ | (58,538 | ) | $ | (97,169 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities | |||||||
Depreciation and amortization expense | 19,050 | 23,837 | |||||
Amortization of premiums on investments, net | 137 | — | |||||
Stock-based compensation expense | 114,075 | 101,309 | |||||
Deferred income taxes | (3,965 | ) | 465 | ||||
Changes in operating assets and liabilities | |||||||
Accounts receivable, net | 31,490 | 72,493 | |||||
Prepaid expenses and other assets | (44,925 | ) | 19,519 | ||||
Income taxes receivable | (125 | ) | (97 | ) | |||
Deferred revenue | (3,893 | ) | 30,072 | ||||
Accounts payable and accrued liabilities | 8,663 | (16,421 | ) | ||||
Income taxes payable | (2,713 | ) | 523 | ||||
Net cash provided by operating activities | 59,256 | 134,531 | |||||
Investing activities | |||||||
Purchases of property and equipment | (11,076 | ) | (33,860 | ) | |||
Business combination, net of cash acquired | (10,947 | ) | — | ||||
Purchases of investments | (156,591 | ) | — | ||||
Maturities of investments | 139,685 | — | |||||
Sales of investments | 99 | — | |||||
Net cash used in investing activities | (38,830 | ) | (33,860 | ) | |||
Financing activities | |||||||
Proceeds from issuance of common stock | 25,581 | 21,646 | |||||
Repurchases of common stock | (60,013 | ) | (40,014 | ) | |||
Net cash used in financing activities | (34,432 | ) | (18,368 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (2,781 | ) | 1,884 | ||||
Net increase (decrease) in cash and cash equivalents | (16,787 | ) | 84,187 | ||||
Cash and cash equivalents | |||||||
Beginning of period | 627,878 | 908,717 | |||||
End of period | $ | 611,091 | $ | 992,904 |
Three Months Ended June 30, | |||||||||||||||
2018 | 2017 | ||||||||||||||
As Reported (ASC 606) | Impacts from Adoption | Without Adoption (ASC 605) | As Reported (ASC 605) | ||||||||||||
Revenues | |||||||||||||||
License | $ | 137,848 | $ | (15,267 | ) | $ | 122,581 | $ | 103,296 | ||||||
Maintenance and services | 144,441 | (23,456 | ) | 120,985 | 109,584 | ||||||||||
Total revenues | 282,289 | (38,723 | ) | 243,566 | 212,880 | ||||||||||
Cost of revenues | |||||||||||||||
License | 4,626 | (91 | ) | 4,535 | 2,942 | ||||||||||
Maintenance and services | 30,599 | 106 | 30,705 | 23,723 | |||||||||||
Total cost of revenues | 35,225 | 15 | 35,240 | 26,665 | |||||||||||
Gross profit | 247,064 | (38,738 | ) | 208,326 | 186,215 | ||||||||||
Operating expenses | |||||||||||||||
Sales and marketing | 144,150 | 6,352 | 150,502 | 124,160 | |||||||||||
Research and development | 94,033 | — | 94,033 | 81,067 | |||||||||||
General and administrative | 29,846 | — | 29,846 | 25,875 | |||||||||||
Total operating expenses | 268,029 | 6,352 | 274,381 | 231,102 | |||||||||||
Operating loss | (20,965 | ) | (45,090 | ) | (66,055 | ) | (44,887 | ) | |||||||
Other income, net | 6,866 | 118 | 6,984 | 4,029 | |||||||||||
Loss before income tax expense (benefit) | (14,099 | ) | (44,972 | ) | (59,071 | ) | (40,858 | ) | |||||||
Income tax expense (benefit) | (2,033 | ) | 2,529 | 496 | 1,664 | ||||||||||
Net loss | $ | (12,066 | ) | $ | (47,501 | ) | $ | (59,567 | ) | $ | (42,522 | ) | |||
Net loss per share: | |||||||||||||||
Basic | $ | (0.15 | ) | $ | (0.72 | ) | $ | (0.54 | ) | ||||||
Diluted | $ | (0.15 | ) | $ | (0.72 | ) | $ | (0.54 | ) | ||||||
Weighted average shares used to compute net loss per share: | |||||||||||||||
Basic | 82,247 | 82,247 | 78,511 | ||||||||||||
Diluted | 82,247 | 82,247 | 78,511 |
Six Months Ended June 30, | |||||||||||||||
2018 | 2017 | ||||||||||||||
As Reported (ASC 606) | Impacts from Adoption | Without Adoption (ASC 605) | As Reported (ASC 605) | ||||||||||||
Revenues | |||||||||||||||
License | $ | 246,641 | $ | (18,394 | ) | $ | 228,247 | $ | 200,540 | ||||||
Maintenance and services | 281,855 | (42,492 | ) | 239,363 | 212,246 | ||||||||||
Total revenues | 528,496 | (60,886 | ) | 467,610 | 412,786 | ||||||||||
Cost of revenues | |||||||||||||||
License | 8,580 | (143 | ) | 8,437 | 6,209 | ||||||||||
Maintenance and services | 59,070 | 167 | 59,237 | 47,111 | |||||||||||
Total cost of revenues | 67,650 | 24 | 67,674 | 53,320 | |||||||||||
Gross profit | 460,846 | (60,910 | ) | 399,936 | 359,466 | ||||||||||
Operating expenses | |||||||||||||||
Sales and marketing | 282,556 | 10,959 | 293,515 | 242,178 | |||||||||||
Research and development | 187,538 | — | 187,538 | 165,369 | |||||||||||
General and administrative | 62,096 | — | 62,096 | 50,320 | |||||||||||
Total operating expenses | 532,190 | 10,959 | 543,149 | 457,867 | |||||||||||
Operating loss | (71,344 | ) | (71,869 | ) | (143,213 | ) | (98,401 | ) | |||||||
Other income, net | 8,328 | 80 | 8,408 | 5,254 | |||||||||||
Loss before income tax expense (benefit) | (63,016 | ) | (71,789 | ) | (134,805 | ) | (93,147 | ) | |||||||
Income tax expense (benefit) | (4,478 | ) | 8,266 | 3,788 | 4,022 | ||||||||||
Net loss | $ | (58,538 | ) | $ | (80,055 | ) | $ | (138,593 | ) | $ | (97,169 | ) | |||
Net loss per share: | |||||||||||||||
Basic | $ | (0.72 | ) | $ | (1.70 | ) | $ | (1.25 | ) | ||||||
Diluted | $ | (0.72 | ) | $ | (1.70 | ) | $ | (1.25 | ) | ||||||
Weighted average shares used to compute net loss per share: | |||||||||||||||
Basic | 81,647 | 81,647 | 77,966 | ||||||||||||
Diluted | 81,647 | 81,647 | 77,966 |
June 30, 2018 | December 31, 2017 | ||||||||||||||
As Reported (ASC 606) | Impacts from Adoption | Without Adoption (ASC 605) | As Reported (ASC 605) | ||||||||||||
Assets | |||||||||||||||
Current assets | |||||||||||||||
Cash and cash equivalents | $ | 611,091 | $ | — | $ | 611,091 | $ | 627,878 | |||||||
Short-term investments | 301,054 | — | 301,054 | 226,787 | |||||||||||
Accounts receivable, net | 170,907 | — | 170,907 | 203,366 | |||||||||||
Prepaid expenses and other current assets | 115,605 | (85,423 | ) | 30,182 | 30,514 | ||||||||||
Income taxes receivable | 778 | 269 | 1,047 | 673 | |||||||||||
Total current assets | 1,199,435 | (85,154 | ) | 1,114,281 | 1,089,218 | ||||||||||
Long-term investments | 89,991 | — | 89,991 | 148,364 | |||||||||||
Property and equipment, net | 95,603 | — | 95,603 | 106,753 | |||||||||||
Goodwill | 42,530 | — | 42,530 | 35,083 | |||||||||||
Deferred income taxes | 4,072 | 1,509 | 5,581 | 5,287 | |||||||||||
Other long-term assets | 41,626 | (24,972 | ) | 16,654 | 14,090 | ||||||||||
Total assets | $ | 1,473,257 | $ | (108,617 | ) | $ | 1,364,640 | $ | 1,398,795 | ||||||
Liabilities and stockholders' equity | |||||||||||||||
Current liabilities | |||||||||||||||
Accounts payable | $ | 3,829 | $ | — | $ | 3,829 | $ | 4,448 | |||||||
Accrued compensation and employee-related benefits | 75,129 | — | 75,129 | 96,390 | |||||||||||
Other accrued liabilities | 54,745 | — | 54,745 | 37,722 | |||||||||||
Income taxes payable | 1,986 | 2,264 | 4,250 | 4,743 | |||||||||||
Deferred revenue | 320,305 | 121,922 | 442,227 | 419,426 | |||||||||||
Total current liabilities | 455,994 | 124,186 | 580,180 | 562,729 | |||||||||||
Deferred revenue | 15,615 | 12,022 | 27,637 | 28,058 | |||||||||||
Other long-term liabilities | 53,686 | (775 | ) | 52,911 | 54,385 | ||||||||||
Total liabilities | 525,295 | 135,433 | 660,728 | 645,172 | |||||||||||
Stockholders' equity | |||||||||||||||
Common stock | 8 | — | 8 | 8 | |||||||||||
Additional paid-in capital | 1,256,854 | — | 1,256,854 | 1,168,563 | |||||||||||
Accumulated other comprehensive loss | (11,811 | ) | 411 | (11,400 | ) | (11,991 | ) | ||||||||
Accumulated deficit | (297,089 | ) | (244,461 | ) | (541,550 | ) | (402,957 | ) | |||||||
Total stockholders' equity | 947,962 | (244,050 | ) | 703,912 | 753,623 | ||||||||||
Total liabilities and stockholders' equity | $ | 1,473,257 | $ | (108,617 | ) | $ | 1,364,640 | $ | 1,398,795 |
Six Months Ended June 30, | |||||||||||||||
2018 | 2017 | ||||||||||||||
As Reported (ASC 606) | Impacts from Adoption | Without Adoption (ASC 605) | As Reported (ASC 605) | ||||||||||||
Operating activities | |||||||||||||||
Net loss | $ | (58,538 | ) | $ | (80,055 | ) | $ | (138,593 | ) | $ | (97,169 | ) | |||
Adjustments to reconcile net loss to net cash provided by operating activities | |||||||||||||||
Depreciation and amortization expense | 19,050 | — | 19,050 | 23,837 | |||||||||||
Amortization of premiums on investments, net | 137 | — | 137 | — | |||||||||||
Stock-based compensation expense | 114,075 | — | 114,075 | 101,309 | |||||||||||
Deferred income taxes | (3,965 | ) | 3,784 | (181 | ) | 465 | |||||||||
Changes in operating assets and liabilities | |||||||||||||||
Accounts receivable, net | 31,490 | — | 31,490 | 72,493 | |||||||||||
Prepaid expenses and other assets | (44,925 | ) | 45,078 | 153 | 19,519 | ||||||||||
Income taxes receivable | (125 | ) | (270 | ) | (395 | ) | (97 | ) | |||||||
Deferred revenue | (3,893 | ) | 29,522 | 25,629 | 30,072 | ||||||||||
Accounts payable and accrued liabilities | 8,663 | — | 8,663 | (16,421 | ) | ||||||||||
Income taxes payable | (2,713 | ) | 2,263 | (450 | ) | 523 | |||||||||
Net cash provided by operating activities | 59,256 | 322 | 59,578 | 134,531 | |||||||||||
Investing activities | |||||||||||||||
Purchases of property and equipment | (11,076 | ) | — | (11,076 | ) | (33,860 | ) | ||||||||
Business combination, net of cash acquired | (10,947 | ) | — | (10,947 | ) | — | |||||||||
Purchases of investments | (156,591 | ) | — | (156,591 | ) | — | |||||||||
Maturities of investments | 139,685 | — | 139,685 | — | |||||||||||
Sales of investments | 99 | — | 99 | — | |||||||||||
Net cash used in investing activities | (38,830 | ) | — | (38,830 | ) | (33,860 | ) | ||||||||
Financing activities | |||||||||||||||
Proceeds from issuance of common stock | 25,581 | — | 25,581 | 21,646 | |||||||||||
Repurchases of common stock | (60,013 | ) | — | (60,013 | ) | (40,014 | ) | ||||||||
Net cash used in financing activities | (34,432 | ) | — | (34,432 | ) | (18,368 | ) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (2,781 | ) | (322 | ) | (3,103 | ) | 1,884 | ||||||||
Net increase (decrease) in cash and cash equivalents | (16,787 | ) | — | (16,787 | ) | 84,187 | |||||||||
Cash and cash equivalents | |||||||||||||||
Beginning of period | 627,878 | — | 627,878 | 908,717 | |||||||||||
End of period | $ | 611,091 | $ | — | $ | 611,091 | $ | 992,904 |
Three Months Ended June 30, | |||||||||||||||
2018 | 2017 | ||||||||||||||
As Reported (ASC 606) | Impacts from Adoption | Without Adoption (ASC 605) | As Reported (ASC 605) | ||||||||||||
Reconciliation of gross profit to non-GAAP gross profit: | |||||||||||||||
Gross profit | $ | 247,064 | $ | (38,738 | ) | $ | 208,326 | $ | 186,215 | ||||||
Excluding: Stock-based compensation expense attributable to cost of revenues | 3,299 | — | 3,299 | 2,790 | |||||||||||
Excluding: Amortization of acquired intangible assets | 404 | — | 404 | 95 | |||||||||||
Non-GAAP gross profit | $ | 250,767 | $ | (38,738 | ) | $ | 212,029 | $ | 189,100 | ||||||
Reconciliation of gross margin to non-GAAP gross margin: | |||||||||||||||
Gross margin | 87.5 | % | 85.5 | % | 87.5 | % | |||||||||
Excluding: Stock-based compensation expense attributable to cost of revenues | 1.2 | % | 1.4 | % | 1.3 | % | |||||||||
Excluding: Amortization of acquired intangible assets | 0.1 | % | 0.2 | % | 0.0 | % | |||||||||
Non-GAAP gross margin | 88.8 | % | 87.1 | % | 88.8 | % | |||||||||
Reconciliation of operating loss to non-GAAP operating income (loss): | |||||||||||||||
Operating loss | $ | (20,965 | ) | $ | (45,090 | ) | $ | (66,055 | ) | $ | (44,887 | ) | |||
Excluding: Stock-based compensation expense | 58,312 | — | 58,312 | 52,114 | |||||||||||
Excluding: Amortization of acquired intangible assets | 404 | — | 404 | 95 | |||||||||||
Non-GAAP operating income (loss) | $ | 37,751 | $ | (45,090 | ) | $ | (7,339 | ) | $ | 7,322 | |||||
Reconciliation of operating margin to non-GAAP operating margin: | |||||||||||||||
Operating margin | (7.4 | )% | (27.1 | )% | (21.1 | )% | |||||||||
Excluding: Stock-based compensation expense | 20.7 | % | 23.9 | % | 24.5 | % | |||||||||
Excluding: Amortization of acquired intangible assets | 0.1 | % | 0.2 | % | 0.0 | % | |||||||||
Non-GAAP operating margin | 13.4 | % | (3.0 | )% | 3.4 | % |
Three Months Ended June 30, | |||||||||||||||
2018 | 2017 | ||||||||||||||
As Reported (ASC 606) | Impacts from Adoption | Without Adoption (ASC 605) | As Reported (ASC 605) | ||||||||||||
Reconciliation of net loss to non-GAAP net income (loss): | |||||||||||||||
Net loss | $ | (12,066 | ) | $ | (47,501 | ) | $ | (59,567 | ) | $ | (42,522 | ) | |||
Excluding: Stock-based compensation expense | 58,312 | — | 58,312 | 52,114 | |||||||||||
Excluding: Amortization of acquired intangible assets | 404 | — | 404 | 95 | |||||||||||
Income tax adjustments | (10,956 | ) | 11,523 | 567 | (1,742 | ) | |||||||||
Non-GAAP net income (loss) | $ | 35,694 | $ | (35,978 | ) | $ | (284 | ) | $ | 7,945 | |||||
Weighted average shares used to compute non-GAAP basic net income (loss) per share | 82,247 | 82,247 | 78,511 | ||||||||||||
Effect of potentially dilutive shares: stock awards | 3,878 | — | 3,925 | ||||||||||||
Weighted average shares used to compute non-GAAP diluted net income (loss) per share | 86,125 | 82,247 | 82,436 | ||||||||||||
Non-GAAP net income (loss) per share: | |||||||||||||||
Basic | $ | 0.43 | $ | (0.00 | ) | $ | 0.10 | ||||||||
Diluted | $ | 0.41 | $ | (0.00 | ) | $ | 0.10 |
Six Months Ended June 30, | |||||||||||||||
2018 | 2017 | ||||||||||||||
As Reported (ASC 606) | Impacts from Adoption | Without Adoption (ASC 605) | As Reported (ASC 605) | ||||||||||||
Reconciliation of gross profit to non-GAAP gross profit: | |||||||||||||||
Gross profit | $ | 460,846 | $ | (60,910 | ) | $ | 399,936 | $ | 359,466 | ||||||
Excluding: Stock-based compensation expense attributable to cost of revenues | 6,286 | — | 6,286 | 5,367 | |||||||||||
Excluding: Amortization of acquired intangible assets | 753 | — | 753 | 190 | |||||||||||
Non-GAAP gross profit | $ | 467,885 | $ | (60,910 | ) | $ | 406,975 | $ | 365,023 | ||||||
Reconciliation of gross margin to non-GAAP gross margin: | |||||||||||||||
Gross margin | 87.2 | % | 85.5 | % | 87.1 | % | |||||||||
Excluding: Stock-based compensation expense attributable to cost of revenues | 1.2 | % | 1.3 | % | 1.3 | % | |||||||||
Excluding: Amortization of acquired intangible assets | 0.1 | % | 0.2 | % | 0.0 | % | |||||||||
Non-GAAP gross margin | 88.5 | % | 87.0 | % | 88.4 | % | |||||||||
Reconciliation of operating loss to non-GAAP operating income (loss): | |||||||||||||||
Operating loss | $ | (71,344 | ) | $ | (71,869 | ) | $ | (143,213 | ) | $ | (98,401 | ) | |||
Excluding: Stock-based compensation expense | 114,075 | — | 114,075 | 101,309 | |||||||||||
Excluding: Amortization of acquired intangible assets | 753 | — | 753 | 190 | |||||||||||
Non-GAAP operating income (loss) | $ | 43,484 | $ | (71,869 | ) | $ | (28,385 | ) | $ | 3,098 | |||||
Reconciliation of operating margin to non-GAAP operating margin: | |||||||||||||||
Operating margin | (13.5 | )% | (30.6 | )% | (23.8 | )% | |||||||||
Excluding: Stock-based compensation expense | 21.6 | % | 24.4 | % | 24.5 | % | |||||||||
Excluding: Amortization of acquired intangible assets | 0.1 | % | 0.2 | % | 0.0 | % | |||||||||
Non-GAAP operating margin | 8.2 | % | (6.1 | )% | 0.8 | % |
Six Months Ended June 30, | |||||||||||||||
2018 | 2017 | ||||||||||||||
As Reported (ASC 606) | Impacts from Adoption | Without Adoption (ASC 605) | As Reported (ASC 605) | ||||||||||||
Reconciliation of net loss to non-GAAP net income (loss): | |||||||||||||||
Net loss | $ | (58,538 | ) | $ | (80,055 | ) | $ | (138,593 | ) | $ | (97,169 | ) | |||
Excluding: Stock-based compensation expense | 114,075 | — | 114,075 | 101,309 | |||||||||||
Excluding: Amortization of acquired intangible assets | 753 | — | 753 | 190 | |||||||||||
Income tax adjustments | (14,840 | ) | 22,623 | 7,783 | 1,516 | ||||||||||
Non-GAAP net income (loss) | $ | 41,450 | $ | (57,432 | ) | $ | (15,982 | ) | $ | 5,846 | |||||
Weighted average shares used to compute non-GAAP basic net income (loss) per share | 81,647 | 81,647 | 77,966 | ||||||||||||
Effect of potentially dilutive shares: stock awards | 3,949 | — | 3,772 | ||||||||||||
Weighted average shares used to compute non-GAAP diluted net income (loss) per share | 85,596 | 81,647 | 81,738 | ||||||||||||
Non-GAAP net income (loss) per share: | |||||||||||||||
Basic | $ | 0.51 | $ | (0.20 | ) | $ | 0.07 | ||||||||
Diluted | $ | 0.48 | $ | (0.20 | ) | $ | 0.07 |
Six Months Ended June 30, | |||||||||||||||
2018 | 2017 | ||||||||||||||
As Reported (ASC 606) | Impacts from Adoption | Without Adoption (ASC 605) | As Reported (ASC 605) | ||||||||||||
Reconciliation of net cash provided by operating activities to free cash flow: | |||||||||||||||
Net cash provided by operating activities | $ | 59,256 | $ | 322 | $ | 59,578 | $ | 134,531 | |||||||
Less: Purchases of property and equipment | (11,076 | ) | — | (11,076 | ) | (33,860 | ) | ||||||||
Free cash flow | $ | 48,180 | $ | 322 | $ | 48,502 | $ | 100,671 | |||||||
Net cash used in investing activities | $ | (38,830 | ) | $ | — | $ | (38,830 | ) | $ | (33,860 | ) | ||||
Net cash used in financing activities | $ | (34,432 | ) | $ | — | $ | (34,432 | ) | $ | (18,368 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | $ | (2,781 | ) | $ | (322 | ) | $ | (3,103 | ) | $ | 1,884 |
Q1`17 | Q2`17 | Q3`17 | Q4`17 | FY 2017 | Q1`18 | Q2`18 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Customer metrics | |||||||||||||||||||||
Customer accounts (1) | 57,000+ | 61,000+ | 65,000+ | 70,000+ | 70,000+ | 74,000+ | 78,000+ | ||||||||||||||
Customer accounts added in period (1) | 3,300+ | 4,000+ | 4,100+ | 4,700+ | 16,100+ | 3,900+ | 4,100+ | ||||||||||||||
Deals greater than $100,000 (2) | 294 | 372 | 337 | 590 | 1,593 | 301 | 436 | ||||||||||||||
Customer accounts that purchased greater than $1 million during the quarter (1,2) | 10 | 15 | 13 | 27 | 13 | 22 | |||||||||||||||
Annual recurring revenue metrics | |||||||||||||||||||||
Total annual recurring revenue (3) | $ | 439,001 | $ | 483,578 | $ | 526,211 | $ | 596,244 | $ | 596,244 | $ | 641,946 | $ | 697,700 | |||||||
Subscription annual recurring revenue (4) | $ | 71,950 | $ | 103,538 | $ | 139,210 | $ | 195,488 | $ | 195,488 | $ | 237,533 | $ | 291,292 | |||||||
Geographic revenue metrics - ASC 606 | |||||||||||||||||||||
United States and Canada | — | — | — | — | — | $ | 167,799 | $ | 196,992 | ||||||||||||
International | — | — | — | — | — | $ | 78,408 | $ | 85,297 | ||||||||||||
United States and Canada as % of total revenue | — | — | — | — | — | 68 | % | 70 | % | ||||||||||||
International as % of total revenue | — | — | — | — | — | 32 | % | 30 | % | ||||||||||||
Geographic revenue metrics - ASC 605 | |||||||||||||||||||||
United States and Canada | $ | 141,496 | $ | 146,102 | $ | 150,059 | $ | 168,116 | $ | 605,773 | $ | 154,443 | $ | 169,234 | |||||||
International | $ | 58,410 | $ | 66,778 | $ | 64,858 | $ | 81,240 | $ | 271,286 | $ | 69,601 | $ | 74,332 | |||||||
United States and Canada as % of total revenue | 71 | % | 69 | % | 70 | % | 67 | % | 69 | % | 69 | % | 69 | % | |||||||
International as % of total revenue | 29 | % | 31 | % | 30 | % | 33 | % | 31 | % | 31 | % | 31 | % | |||||||
Additional revenue metrics - ASC 606 | |||||||||||||||||||||
Remaining performance obligations (5) | — | — | — | — | $ | 99,580 | $ | 114,523 | $ | 138,498 | |||||||||||
Additional revenue metrics - ASC 605 | |||||||||||||||||||||
Ratable revenue as % of total revenue (6) | 54 | % | 56 | % | 63 | % | 60 | % | 59 | % | 72 | % | 72 | % | |||||||
Ratable license revenue as % of total license revenue (7) | 19 | % | 23 | % | 34 | % | 34 | % | 28 | % | 54 | % | 56 | % | |||||||
Services revenues as a % of maintenance and services revenue (8) | 12 | % | 13 | % | 12 | % | 13 | % | 13 | % | 11 | % | 12 | % | |||||||
Bookings metrics - ASC 605 | |||||||||||||||||||||
Ratable bookings as % of total bookings (2) | 55 | % | 61 | % | 65 | % | 70 | % | 64 | % | 72 | % | 76 | % | |||||||
Ratable license bookings as % of total license bookings (2) | 26 | % | 37 | % | 45 | % | 51 | % | 41 | % | 59 | % | 67 | % | |||||||
Other metrics | |||||||||||||||||||||
Worldwide employees | 3,193 | 3,305 | 3,418 | 3,489 | 3,489 | 3,663 | 3,896 |