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): April 22, 2014
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 April 22, 2014, Xoom Corporation (the Company) issued a press release announcing unaudited financial results for its first quarter ended March 31, 2014. 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 April 22, 2014, titled Xoom Reports First Quarter 2014 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: April 22, 2014
XOOM CORPORATION | ||
By: | /s/ Ryno Blignaut | |
Ryno Blignaut | ||
Chief Financial Officer |
EXHIBIT INDEX
Exhibit No. |
Description of Exhibits | |
99.1 | Press release dated April 22, 2014, titled Xoom Reports First Quarter 2014 Results |
Exhibit 99.1
Xoom Reports First Quarter 2014 Results
- | Revenue of $35.9 Million, increase of 48% from Q1 2013 |
- | Gross Sending Volume of $1.6 Billion, increase of 49% from Q1 2013 |
- | 1,130,367 Active Customers, increase of 34% from Q1 2013 |
SAN FRANCISCO, Calif., April 22, 2014 Xoom Corporation (NASDAQ: XOOM), a leading digital money transfer provider, today announced financial results for the first quarter of 2014:
| Revenue for the first quarter was $35.9 million, an increase of 48% from the first quarter of 2013. |
| Gross profit for the first quarter was $26.4 million, an increase of 57% from the first quarter of 2013. |
| GAAP net income for the first quarter was $0.4 million, or $0.01 per diluted share, compared to a net loss of $79,000, or $0.00 per diluted share, for the first quarter of 2013. |
| Adjusted EBITDA for the first quarter was $3.5 million, compared to $1.6 million for the first quarter of 2013. |
| Non-GAAP earnings per diluted share for the first quarter was $0.06, compared to $0.02 per diluted share for the first quarter of 2013. |
| Cash, cash equivalents, disbursement prefunding and short-term investments were $243.5 million as of March 31, 2014, compared to $249.5 million as of December 31, 2013. |
| As of March 31, 2014 and December 31, 2013, we had no outstanding balance under our line of credit. |
We had a solid first quarter with continued momentum from mobile channels and high quality additions to our payout network generating strong financial results, said John Kunze, president and chief executive officer, Xoom. Risk management continues to be a critical differentiator for Xoom. With our industry best loss management, we are able to ensure a seamless consumer experience, while delivering our services at consistently faster speeds, on great margins.
Operating Metrics
| Gross sending volume for the quarter grew 49% to $1.6 billion from the first quarter of 2013. |
| Transactions for the quarter grew 42% to 2,896,639 from the first quarter of 2013. |
| Active customers for the quarter grew 34% to 1,130,367 from the first quarter of 2013. |
| New customers for the quarter grew 7% to 117,095 from the first quarter of 2013. |
Highlights and Strategic Announcements
During the quarter, Xoom expanded its payout network and service innovations.
| Xoom partnered with Metrobank and Philippine National Bank (PNB) to offer instant deposits to Metrobank and PNB bank accounts in the Philippines, which, in addition to Xooms instant bank deposit service to BDO, provides Xoom customers the ability to instantly send money directly into their recipients accounts at three of the top five banks in the Philippines. |
| Xoom partnered with HDFC Bank Limited to offer instant deposits to Rupee-denominated HDFC Bank accounts in India. This breakthrough service allows Xoom customers to instantly deposit money into their recipients HDFC Bank accounts in India 24 hours a day, seven days a week, 365 days a year, including bank holidays. |
| Xoom partnered with Banco Popular Dominicano to offer deposit services to the banks checking and savings accounts in usually less than 15 minutes to the Dominican Republic and cash pick up services at more than 200 locations across the island, expanding Xooms total cash pickup network in the Dominican Republic to 576 locations. |
Business Outlook
For Q2 2014, Xoom is targeting the following:
| Revenue to be between $38.0 million and $40.0 million. |
| Adjusted EBITDA to be between $2.0 million and $4.0 million. |
| GAAP diluted net income (loss) per share to be in the range of $(0.04) to $0.01. |
| Non-GAAP diluted net income per share to be in the range of $0.02 to $0.06. |
For Full Year 2014, Xoom is targeting the following:
| Revenue to be between $157.0 million and $162.0 million. |
| Adjusted EBITDA to be between $12.0 million and $15.0 million. |
| GAAP diluted net loss per share to be in the range of $0.09 to $0.02. |
| Non-GAAP diluted net income per share to be in the range of $0.15 to $0.22. |
Conference Call
Xoom plans to host a conference call today to review its first quarter 2014 results and to discuss its financial outlook for the second quarter and full year 2014. 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 in 31 countries, 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 March 31, 2014, Xooms more than 1.1 million active customers sent more than $6.1 billion to family and friends. 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 and services, 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 mobile phones and 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 Annual Report on Form 10-K for the year ended December 31, 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 per share. Adjusted EBITDA excludes provision for income taxes, interest expense, interest income, amortization of acquired intangible asset, depreciation and other amortization expense, and expenses related to stock-based compensation. Non-GAAP net income excludes expenses related to stock-based compensation and amortization of acquired intangible asset. 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-f)
Contacts:
Sharrifah Al-Salem
Director of Investor Relations
IR@xoom.com
Robin Carr
Director of Public Relations
PR@xoom.com
XOOM CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except share and per share data)
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
(unaudited) | (derived from audited financial statements) |
|||||||
Assets | ||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 98,010 | $ | 110,979 | ||||
Disbursement prefunding |
38,722 | 33,799 | ||||||
Short-term investments |
106,767 | 104,678 | ||||||
Customer funds receivable |
29,389 | 16,381 | ||||||
Prepaid expenses and other current assets |
5,066 | 4,237 | ||||||
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|
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Total current assets |
277,954 | 270,074 | ||||||
Non-current assets: |
||||||||
Property, equipment and software, net |
5,254 | 4,855 | ||||||
Goodwill |
9,032 | | ||||||
Intangibles, net |
5,746 | 250 | ||||||
Restricted cash |
10,968 | 7,816 | ||||||
Other assets |
966 | 1,084 | ||||||
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Total assets |
$ | 309,920 | $ | 284,079 | ||||
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Liabilities and Stockholders Equity | ||||||||
Current liabilities: |
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Accounts payable and accrued expenses |
$ | 9,220 | $ | 8,345 | ||||
Customer liabilities |
25,628 | 10,791 | ||||||
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Total current liabilities |
34,848 | 19,136 | ||||||
Non-current liabilities: |
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Other non-current liabilities |
2,309 | 99 | ||||||
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Total liabilities |
37,157 | 19,235 | ||||||
Commitments and Contingencies |
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Stockholders equity: |
||||||||
Convertible preferred stock, $0.0001 par value, 25,000,000 shares authorized; issued and outstanding 0 shares; aggregate liquidation preference $0 at March 31, 2014 and December 31, 2013 |
| | ||||||
Common stock, $0.0001 par value, 500,000,000 shares authorized; issued and outstanding 37,983,793 and 37,583,945 shares at March 31, 2014 and December 31, 2013, respectively |
4 | 4 | ||||||
Additional paid-in capital |
329,450 | 321,878 | ||||||
Accumulated other comprehensive loss |
(5 | ) | | |||||
Accumulated deficit |
(56,686 | ) | (57,038 | ) | ||||
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Total stockholders equity |
272,763 | 264,844 | ||||||
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Total liabilities and stockholders equity |
$ | 309,920 | $ | 284,079 | ||||
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XOOM CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
(unaudited) | ||||||||
Revenue |
$ | 35,938 | $ | 24,315 | ||||
Cost of revenue |
9,578 | 7,519 | ||||||
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Gross profit |
26,360 | 16,796 | ||||||
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Marketing |
8,782 | 5,692 | ||||||
Technology and development |
7,850 | 4,834 | ||||||
Customer service and operations |
3,974 | 3,017 | ||||||
General and administrative |
5,158 | 2,923 | ||||||
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Total operating expense |
25,764 | 16,466 | ||||||
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Income from operations |
596 | 330 | ||||||
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Other income (expense): |
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Interest expense |
(328 | ) | (447 | ) | ||||
Interest income |
76 | 36 | ||||||
Other income |
20 | 4 | ||||||
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Income (loss) before provision for income taxes |
364 | (77 | ) | |||||
Provision for income taxes |
12 | 2 | ||||||
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Net income (loss) |
$ | 352 | $ | (79 | ) | |||
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Net income (loss) per share: |
||||||||
Basic |
$ | 0.01 | $ | (0.00 | ) | |||
Diluted |
$ | 0.01 | $ | (0.00 | ) | |||
Weighted-average shares used to compute net income (loss) per share: |
||||||||
Basic |
37,799 | 19,041 | ||||||
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Diluted |
41,710 | 19,041 | ||||||
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XOOM CORPORATION AND SUBSIDIARIES
Key Metrics
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
(unaudited) | ||||||||
Other Financial and Operational Data: |
||||||||
Gross Sending Volume |
$ | 1,576,690,682 | $ | 1,055,847,000 | ||||
Transactions |
2,896,639 | 2,039,000 | ||||||
Active Customers |
1,130,367 | 841,819 | ||||||
New Customers |
117,095 | 109,631 | ||||||
Cost Per Acquisition of a New Customer |
$ | 56 | $ | 40 | ||||
Adjusted EBITDA (in thousands) |
$ | 3,523 | $ | 1,574 |
XOOM CORPORATION AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Operating Results
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands, except per share data) |
||||||||
(unaudited) | ||||||||
Non-GAAP net income (loss) per share: |
||||||||
GAAP net income (loss) |
$ | 352 | $ | (79 | ) | |||
Add back: stock-based compensation |
1,924 | 778 | ||||||
Add back: amortization of acquired intangible asset |
204 | | ||||||
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Non-GAAP net income |
$ | 2,480 | $ | 699 | ||||
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Non-GAAP diluted net income per share |
$ | 0.06 | $ | 0.02 | ||||
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Non-GAAP diluted shares |
41,710 | 34,459 | ||||||
Reconciliation of Adjusted EBITDA: |
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Net income (loss) |
$ | 352 | $ | (79 | ) | |||
Provision for income taxes |
12 | 2 | ||||||
Interest expense |
328 | 447 | ||||||
Interest income |
(76 | ) | (36 | ) | ||||
Amortization of acquired intangible asset |
204 | | ||||||
Depreciation and other amortization expense |
779 | 462 | ||||||
Stock-based compensation |
1,924 | 778 | ||||||
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Adjusted EBITDA |
$ | 3,523 | $ | 1,574 | ||||
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XOOM CORPORATION AND SUBSIDIARIES
Forward-Looking Guidance
Three Months Ending | Twelve Months Ending | |||||||||||||||
June 30, 2014 | December 31, 2014 | |||||||||||||||
From | To | From | To | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Net income (loss) per share: |
||||||||||||||||
GAAP net income (loss) |
$ | (1,673 | ) | $ | 325 | $ | (3,615 | ) | $ | (618 | ) | |||||
Add back: stock-based compensation |
2,253 | 2,253 | 9,283 | 9,283 | ||||||||||||
Add back: amortization of acquired intangible asset |
204 | 204 | 814 | 814 | ||||||||||||
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Non-GAAP net income |
$ | 784 | $ | 2,782 | $ | 6,482 | $ | 9,479 | ||||||||
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GAAP diluted net income (loss) per share |
$ | (0.04 | ) | $ | 0.01 | $ | (0.09 | ) | $ | (0.02 | ) | |||||
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Non-GAAP diluted net income per share |
$ | 0.02 | $ | 0.06 | $ | 0.15 | $ | 0.22 | ||||||||
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GAAP diluted shares |
38,294 | 43,128 | 38,625 | 38,625 | ||||||||||||
Non-GAAP diluted shares |
43,128 | 43,128 | 43,029 | 43,029 | ||||||||||||
Adjusted EBITDA: |
||||||||||||||||
GAAP net income (loss) |
$ | (1,673 | ) | $ | 325 | $ | (3,615 | ) | $ | (618 | ) | |||||
Provision for income taxes |
| | 12 | 12 | ||||||||||||
Interest expense |
350 | 351 | 1,379 | 1,381 | ||||||||||||
Interest income |
(101 | ) | (100 | ) | (377 | ) | (376 | ) | ||||||||
Amortization of acquired intangible asset |
204 | 204 | 814 | 814 | ||||||||||||
Depreciation and other amortization expense |
967 | 967 | 4,504 | 4,504 | ||||||||||||
Stock-based compensation |
2,253 | 2,253 | 9,283 | 9,283 | ||||||||||||
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Adjusted EBITDA |
$ | 2,000 | $ | 4,000 | $ | 12,000 | $ | 15,000 | ||||||||
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