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): October 22, 2013
Xoom Corporation
(Exact name of registrant as specified in its charter)
Delaware | 001-35801 | 94-3401054 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
100 Bush Street, Suite 300
San Francisco, CA 94104
(Address of principal executive offices, including zip code)
(415) 777-4800
(Registrants 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:
¨ | 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 October 22, 2013, Xoom Corporation (the Company) issued a press release announcing unaudited financial results for its third quarter ended September 30, 2013. A copy of the press release is furnished as Exhibit 99.1.
In accordance with General Instruction B.2 on Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934 (Exchange Act) or otherwise subject to the liability of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of the general incorporation language of such filing, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. |
Description of Exhibits | |
99.1 | Press release dated October 22, 2013, titled Xoom Reports Third Quarter 2013 Results |
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.
Date: October 22, 2013
XOOM CORPORATION | ||
By: | /s/ Ryno Blignaut | |
Ryno Blignaut | ||
Chief Financial Officer |
EXHIBIT INDEX
Exhibit No. |
Description of Exhibits | |
99.1 | Press release dated October 22, 2013, titled Xoom Reports Third Quarter 2013 Results |
Exhibit 99.1
Xoom Reports Third Quarter 2013 Results
| Revenue of $32.3 Million, increase of 62% from Q3 2012 |
| Gross Sending Volume of $1.5 Billion, increase of 95% from Q3 2012 |
| 997,753 Active Customers, increase of 39% from Q3 2012 |
SAN FRANCISCO, Calif., October 22, 2013 Xoom Corporation (NASDAQ: XOOM), a leading digital money transfer provider, today announced financial results for the third quarter of 2013:
| Revenue for the third quarter was $32.3 million, an increase of 62% from the third quarter of 2012. |
| Gross profit for the third quarter was $21.9 million, an increase of 64% from the third quarter of 2012. |
| GAAP net income for the third quarter was $1.2 million, or $0.03 per diluted share, compared to a net loss of $2.3 million, or a loss of $0.45 per diluted share, for the third quarter of 2012. |
| Adjusted EBITDA for the third quarter was $3.3 million, compared to a loss of $828,000 for the third quarter of 2012. |
| Non-GAAP earnings per diluted share was $0.06, compared to a loss of $0.31 per diluted share for the third quarter of 2012. |
| In September, we closed a follow-on public offering resulting in net proceeds to the Company of $104.8 million. |
| Cash, cash equivalents, disbursement prefunding and short-term investments were $239.5 million as of September 30, 2013, compared to $85.3 million as of December 31, 2012. |
| As of September 30, 2013, we had no outstanding balance under our line of credit, compared to $40 million as of December 31, 2012. |
The quarters strong performance across all corridors illustrates the demand for Xooms digital remittance solution, said John Kunze, president and chief executive officer, Xoom. We are pleased that consumers continue to choose Xoom as their preferred money transfer solution.
Operating Metrics
| Gross sending volume for the quarter grew 95% to $1.5 billion from the third quarter of 2012. |
| Transactions for the quarter grew 56% to 2,622,600 from the third quarter of 2012. |
| Active customers for the quarter grew 39% to 997,753 from the third quarter of 2012. |
| New customers for the quarter grew 31% to 123,600 from the third quarter of 2012. |
Highlights and Strategic Announcements
| During the quarter, Xoom announced two initiatives to extend its reach in the Latin American and Indian communities: |
| In early July, Xoom launched its Money Transfer App in Spanish for Android and iOS devices. The new App in Spanish provides customers a fast and simple channel to send money to loved ones anytime, anywhere. |
| In late July, Xoom announced its money transfer service for non-resident Indians (NRIs) sending to non-resident external (NRE) and non-resident ordinary (NRO) bank accounts in India. NRIs can now deposit money to NRE/NRO accounts within a breakthrough speed of four hours. |
| In July, Xoom announced a partnership with Easypagos to offer Xoom customers more options when sending money to Ecuador. The partnership expands Xooms payout network to more than 1,000 locations in Ecuador, including banks such as Banco Pichincha and Banco de Guayaquil. |
Business Outlook
For Q4 2013, Xoom estimates the following:
| Revenue to be between $30.2 million and $31.2 million. |
| Adjusted EBITDA to be between breakeven and a profit of $1.0 million. |
| GAAP diluted net loss per share to be in the range of $0.07 to $0.05. |
| Non-GAAP diluted net loss per share to be in the range of $0.03 to $0.01. |
For Full Year 2013, Xoom estimates the following:
| Revenue to be between $120.3 million and $121.3 million. |
| Adjusted EBITDA to be between $11.0 million and $12.0 million. |
| GAAP diluted net income per share to be in the range of $0.06 to $0.09. |
| Non-GAAP diluted net income per share to be in the range of $0.18 to $0.21. |
Xoom plans to host a conference call today to review its third quarter 2013 results and to discuss its financial outlook for the fourth quarter and full year 2013. The conference call can be accessed by dialing the toll free number (877) 440-7574 or the international number (253) 237-1314. The call is scheduled to begin at 2:00 p.m. PT / 5:00 p.m. ET and can be accessed via the Web at ir.xoom.com. The webcast will be available live, and a replay will be available following completion of the live broadcast for approximately 60 days.
About Xoom
Xoom is a leading digital money transfer provider, focused on helping consumers send money in a secure, fast and cost-effective way using their mobile phone, tablet or computer. During the 12 month period ended September 30, 2013, Xooms more than 997,000 active customers sent more than $5.1 billion to family and friends in 30 countries. The company is headquartered in San Francisco and can be found online at www.xoom.com.
Forward-Looking Statements
This press release and Xooms scheduled conference call contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 relating to, among other things, expectations, plans, prospects and financial results for Xoom, including, but not limited to, its expectations regarding its expansion into new markets, market demand, future earnings, revenue and financial and operating metrics. These forward-looking statements are based upon the current expectations and beliefs of Xooms management as of the date of this press release and conference call, and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. All forward-looking statements made in this press release and during the conference call are based on information available to Xoom as of the date thereof, and Xoom disclaims any obligation to update these forward-looking statements.
In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: the evolving nature of the industry in which Xoom operates; its failure to attract new customers or retain existing customers; economic, political or regulatory factors beyond its control, in the U.S. or in countries to which its customers transfer money; fluctuations in foreign exchange rates; competitive pricing and marketing strategies by competitors; the adoption of competing technologies that supplant its services; the use of its services for illegal or improper purposes; the failure of partners to disburse funds according to Xooms instructions; its ability to contract for third-party services on commercially reasonable terms; the maintenance of its payment network on terms consistent with those currently in place or newly adopted regulations in the U.S or in countries to which its customers transfer money; increases in transaction processing fees; declines in customer confidence in its business or in money transfer providers generally; its ability to protect its intellectual property; the adoption of smartphones and mobile devices to access information on the Internet and use of its services; potential breaches of its security systems; and other risks and uncertainties.
For a detailed discussion of these and other cautionary statements, please refer to the risk factors discussed in filings with the U.S. Securities and Exchange Commission (SEC), including but not limited to Xooms Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2013, Xooms Registration Statement on Form S-1 declared effective on September 10, 2013, and any subsequently filed reports on Forms 10-Q and 8-K. All documents are available through the SECs Electronic Data Gathering Analysis and Retrieval system (EDGAR) at www.sec.gov or Xooms website at www.xoom.com.
Non-GAAP Financial Measures
Xooms stated results include certain non-GAAP financial measures, including Adjusted EBITDA, non-GAAP net income and non-GAAP earnings/(loss) per share. Adjusted EBITDA excludes (benefit) provision for income taxes, interest expense, interest income, depreciation and amortization, and expenses related to stock-based compensation expense. Non-GAAP net income excludes expenses related to stock-based compensation expense. Adjusted EBITDA and Non-GAAP net income exclude these expenses as they are often excluded by other companies to help investors understand the operational performance of their business, and in the case of stock-based compensation, can be difficult to predict. Xoom believes these adjustments provide useful comparative information to investors.
Xoom considers these non-GAAP financial measures to be important because they provide useful measures of its operating performance and are used by its management for that purpose. In addition, investors often use measures such as these to evaluate the operating performance of a company. Non-GAAP results are presented for supplemental informational purposes only for understanding Xooms operating results. The non-GAAP results should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles, and may be different from non-GAAP measures used by other companies.
XOOM CORPORATION AND SUBSIDIARY
Condensed Consolidated Balance Sheets
(In thousands, except share and per share data)
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
(unaudited) | (derived from audited financial statements) |
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Assets | ||||||||
Current assets: |
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Cash and cash equivalents |
$ | 106,488 | $ | 45,077 | ||||
Disbursement prefunding |
38,313 | 15,070 | ||||||
Short-term investments |
94,698 | 25,125 | ||||||
Customer funds receivable |
23,477 | 9,318 | ||||||
Prepaid expenses and other current assets |
4,244 | 4,934 | ||||||
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Total current assets |
267,220 | 99,524 | ||||||
Noncurrent assets: |
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Property, equipment, software and intangible assets, net |
5,342 | 3,884 | ||||||
Restricted cash |
10,412 | 9,337 | ||||||
Other assets |
967 | 348 | ||||||
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Total assets |
$ | 283,941 | $ | 113,093 | ||||
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Liabilities and Stockholders Equity | ||||||||
Current liabilities: |
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Accounts payable and accrued expenses |
$ | 9,174 | $ | 7,150 | ||||
Customer liabilities |
12,721 | 8,536 | ||||||
Line of credit |
| 15,000 | ||||||
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Total current liabilities |
21,895 | 30,686 | ||||||
Non-current liabilities: |
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Non-current portion of line of credit |
| 25,000 | ||||||
Other non-current liabilities |
101 | 87 | ||||||
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Total liabilities |
21,996 | 55,773 | ||||||
Stockholders equity: |
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Convertible preferred stock, $0.0001 par value. Authorized 0 and 86,726,665 shares; issued and outstanding 0 and 21,444,251 shares; aggregate liquidation preference $0 and $115,404 at September 30, 2013 and December 31, 2012, respectively |
| 2 | ||||||
Common stock, $0.0001 par value. Authorized 500,000,000 and 135,000,000 shares; issued and outstanding 37,358,411 and 5,083,616 shares at September 30, 2013 and December 31, 2012, respectively |
4 | 1 | ||||||
Additional paid-in capital |
320,137 | 120,684 | ||||||
Accumulated other comprehensive income (loss) |
(5 | ) | (1 | ) | ||||
Accumulated deficit |
(58,191 | ) | (63,366 | ) | ||||
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Total stockholders equity |
261,945 | 57,320 | ||||||
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Total liabilities and stockholders equity |
$ | 283,941 | $ | 113,093 | ||||
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XOOM CORPORATION AND SUBSIDIARY
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(unaudited) | ||||||||||||||||
Revenue |
$ | 32,279 | $ | 19,901 | $ | 90,087 | $ | 57,854 | ||||||||
Cost of revenue |
10,364 | 6,533 | 28,002 | 19,375 | ||||||||||||
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Gross profit |
21,915 | 13,368 | 62,085 | 38,479 | ||||||||||||
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Marketing |
6,312 | 5,648 | 18,911 | 16,065 | ||||||||||||
Technology and development |
6,125 | 4,015 | 16,435 | 11,669 | ||||||||||||
Customer service and operations |
3,497 | 2,885 | 9,839 | 7,862 | ||||||||||||
General and administrative |
3,392 | 2,357 | 9,354 | 6,229 | ||||||||||||
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Total operating expense |
19,326 | 14,905 | 54,539 | 41,825 | ||||||||||||
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Income (loss) from operations |
2,589 | (1,537 | ) | 7,546 | (3,346 | ) | ||||||||||
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Other income (expense): |
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Interest expense |
(588 | ) | (387 | ) | (1,534 | ) | (989 | ) | ||||||||
Interest income |
46 | 23 | 123 | 67 | ||||||||||||
Other expense |
(1,002 | ) | (374 | ) | (945 | ) | (111 | ) | ||||||||
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Income (loss) before provision for income taxes |
1,045 | (2,275 | ) | 5,190 | (4,379 | ) | ||||||||||
(Benefit) provision for income taxes |
(119 | ) | | 15 | 2 | |||||||||||
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Net income (loss) |
$ | 1,164 | $ | (2,275 | ) | $ | 5,175 | $ | (4,381 | ) | ||||||
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Net income (loss) per share: |
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Basic |
$ | 0.03 | $ | (0.45 | ) | $ | 0.18 | $ | (0.87 | ) | ||||||
Diluted |
$ | 0.03 | $ | (0.45 | ) | $ | 0.14 | $ | (0.87 | ) | ||||||
Weighted-average shares used to compute net income (loss) per share: |
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Basic |
33,880 | 5,056 | 28,686 | 5,042 | ||||||||||||
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Diluted |
38,188 | 5,056 | 36,438 | 5,042 | ||||||||||||
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XOOM CORPORATION AND SUBSIDIARY
Key Metrics
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(unaudited) | ||||||||||||||||
Other Financial and Operational Data : |
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Gross Sending Volume |
$ | 1,515,557,000 | $ | 777,905,000 | $ | 4,177,988,000 | $ | 2,308,303,000 | ||||||||
Transactions |
2,622,600 | 1,680,000 | 7,243,600 | 4,682,000 | ||||||||||||
Active Customers |
997,753 | 718,064 | 997,753 | 718,064 | ||||||||||||
New Customers |
123,600 | 94,043 | 368,130 | 302,459 | ||||||||||||
Cost Per Acquisition of a New Customer |
$ | 40 | $ | 50 | $ | 41 | $ | 45 | ||||||||
Adjusted EBITDA (in thousands) |
$ | 3,322 | $ | (828 | ) | $ | 11,045 | $ | (753 | ) |
XOOM CORPORATION AND SUBSIDIARY
Reconciliation of GAAP to Non-GAAP Operating Results
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(in thousands) | ||||||||||||||||
(unaudited) | ||||||||||||||||
Non-GAAP net income (loss) per share: |
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GAAP net income (loss) |
$ | 1,164 | $ | (2,275 | ) | $ | 5,175 | $ | (4,381 | ) | ||||||
Add back: stock-based compensation |
1,100 | 704 | 2,837 | 1,712 | ||||||||||||
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Non-GAAP net income (loss) |
$ | 2,264 | $ | (1,571 | ) | $ | 8,012 | $ | (2,669 | ) | ||||||
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Non-GAAP Diluted Net Income (Loss) Per Share |
$ | 0.06 | $ | (0.31 | ) | $ | 0.22 | $ | (0.53 | ) | ||||||
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Non-GAAP Diluted Shares |
38,188 | 5,056 | 36,438 | 5,042 | ||||||||||||
Reconciliation of Adjusted EBITDA: |
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Net income (loss) |
$ | 1,164 | $ | (2,275 | ) | $ | 5,175 | $ | (4,381 | ) | ||||||
(Benefit) provision for income taxes |
(119 | ) | | 15 | 2 | |||||||||||
Interest expense |
588 | 387 | 1,534 | 989 | ||||||||||||
Interest income |
(46 | ) | (23 | ) | (123 | ) | (67 | ) | ||||||||
Depreciation and amortization |
635 | 379 | 1,607 | 992 | ||||||||||||
Stock-based compensation |
1,100 | 704 | 2,837 | 1,712 | ||||||||||||
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Adjusted EBITDA |
$ | 3,322 | $ | (828 | ) | $ | 11,045 | $ | (753 | ) | ||||||
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XOOM CORPORATION AND SUBSIDIARY
Forward-Looking Guidance
Three Months Ending | Twelve Months Ending | |||||||||||||||
December 31, 2013 | December 31, 2013 | |||||||||||||||
From | To | From | To | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Net income (loss) per share: |
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GAAP net income (loss) |
$ | (2,786 | ) | $ | (1,802 | ) | $ | 2,388 | $ | 3,371 | ||||||
Add back: stock-based compensation |
1,477 | 1,474 | 4,313 | 4,310 | ||||||||||||
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Non-GAAP net income (loss) |
$ | (1,309 | ) | $ | (328 | ) | $ | 6,701 | $ | 7,681 | ||||||
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GAAP Diluted Net Income (Loss) Per Share |
$ | (0.07 | ) | $ | (0.05 | ) | $ | 0.06 | $ | 0.09 | ||||||
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Non-GAAP Diluted Net Income (Loss) Per Share |
$ | (0.03 | ) | $ | (0.01 | ) | $ | 0.18 | $ | 0.21 | ||||||
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GAAP Diluted Shares |
37,900 | 37,900 | 37,000 | 37,000 | ||||||||||||
Non-GAAP Diluted Shares |
37,900 | 37,900 | 37,000 | 37,000 | ||||||||||||
Adjusted EBITDA: |
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GAAP net income (loss) |
$ | (2,786 | ) | $ | (1,802 | ) | $ | 2,388 | $ | 3,371 | ||||||
Provision for income taxes |
| | 15 | 15 | ||||||||||||
Interest expense |
643 | 662 | 2,177 | 2,195 | ||||||||||||
Interest income |
(112 | ) | (111 | ) | (235 | ) | (234 | ) | ||||||||
Depreciation and amortization |
778 | 778 | 2,385 | 2,385 | ||||||||||||
Stock-based compensation |
1,477 | 1,474 | 4,313 | 4,310 | ||||||||||||
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Adjusted EBITDA |
$ | | $ | 1,001 | $ | 11,043 | $ | 12,042 | ||||||||
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Contacts:
Gloria Lee
Director of Investor Relations
IR@xoom.com
Robin Carr
Director of Public Relations
PR@xoom.com