8-K

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): February 10, 2015

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.)

425 Market Street, 12th Floor

San Francisco, CA 94105

(Address of principal executive offices, including zip code)

(415)  777-4800

(Registrant’s telephone number, including area code)

Not applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	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 February 10, 2015,  Xoom Corporation (the “Company”) issued a press release announcing unaudited financial results for its fourth quarter and year ended December 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.

July
Exhibit No.	Description of Exhibits
99.1	Press release dated February 10, 2015, titled “Xoom Reports Fourth Quarter and Full Year 2014 Results”

2

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: February 10, 2015
	XOOM CORPORATION
	By:	/s/ Ryno Blignaut
		Ryno Blignaut
		Acting Chief Financial Officer

3

EXHIBIT INDEX

Uly
Exhibit No.	Description of Exhibits
99.1	Press release dated February 10, 2015, titled “Xoom Reports FourthQuarter and Full Year2014 Results”

4

EX-99.1

Exhibit 99.1

Xoom Reports Fourth Quarterand Full Year 2014 Results

- Fourth Quarter Revenue of $43.9 Million, increase of 37% from Q4 2013

- Annual Revenue of $159.1 Million, increase of 30% from 2013

- Fourth Quarter Gross Sending Volume of $1.8 Billion, increase of 29% from Q4 2013

- 2014 Gross Sending Volume of $6.9 Billion, increase of 24% from 2013

- 1,278,646 Active Customers, increase of 21% from Q4 2013

- Xoom moves to Gross Additional Customer metric

SAN FRANCISCO, Calif., February 10, 2015–Xoom Corporation (NASDAQ:XOOM), aleading digital money transfer provider, today announced financial results for the fourth quarterand full year 2014.

For Q4 2014:

· Revenue for the fourth quarterwas$43.9million, an increase of 37% from the fourth quarter of 2013.

· Gross profit for the fourth quarterwas $32.1million,  an increase of 46% from the fourth quarter of 2013.

· GAAP loss for the fourth quarter of 2014 included  a $30.8 million business e-mail compromise(“BEC”) fraud loss as disclosed in the Form 8-K filed on January 5, 2015.

· GAAP net lossfor the fourth quarter was $28.5million, or a loss of$0.74per diluted share, compared to net incomeof $1.2 million, or$0.03per diluted share, for the fourth quarter of 2013.  

· Adjusted EBITDA for the fourth quarter was $6.5million, compared to $3.3 millionfor the fourth quarter of 2013.

· Non-GAAP net incomeper diluted share for the fourth quarterwas$0.12,compared to net income of $0.06per diluted share for the fourth quarter of 2013.

For Full Year 2014:

· Revenue for 2014 was $159.1 million, an increase of 30% from 2013.

· Gross profit for 2014 was $113.7 million, an increase of 35% from 2013.

· GAAP loss for 2014 included a  $30.8 million business e-mail compromise(“BEC”) fraud loss as disclosed in the Form 8-K filed on January 5, 2015.

· GAAP net loss for 2014 was $26.3 million, or a loss of  $0.69 per diluted share, compared to net income of $6.3 million, or $0.17 per diluted share, for 2013.

· Adjusted EBITDA for 2014 was$20.1 million, compared to $14.4 million for 2013.

· Non-GAAP net income per diluted share for 2014 was $0.35, compared to net income of $0.27 per diluted share for 2013. 

· Cash, cash equivalents, disbursement prefunding and short-term investments were $250.2million as of December 31, 2014, compared to $249.5million as of December 31, 2013.

· Outstanding amount due under the line of credit was  $28.0 million as of December 31, 2014.There was no outstanding balance under the line of creditas of December 31, 2013.

“We performed well across all key corridors leading to strong results in the quarter,” said John Kunze, president and chief executive officer, Xoom. “We are pleased to enter 2015 from a position of strength, having executed against several important initiatives including introducing Bill Pay and launching our money transfer service to China, and we will continue to improve our global product, enhance the efficiency of our marketing efforts and target country-specific initiatives to deliver the highest quality experience for our customers.”

Operating Metrics

· Gross sending volume for the quarter grew 29%to $1.8billion from the fourth quarter of 2013.

· Transactions for the quarter grew 27% to 3,477,440from the fourth quarter of 2013.

· Active customers for the quarter grew 21% to 1,278,646 from the fourth quarter of 2013.

· Gross additional customers for the quarter increased by 10% to 145,209 from the fourth quarter of 2013.

· New customers for the quarter increased by5% to 118,072 from the fourth quarter of 2013.

Highlights and Strategic Announcements

During the quarter, Xoom launched Xoom Bill Pay, a cutting edge technology platform that transforms cross-border bill payments, allowing customers to pay their loved ones’ bills online. Xoom Bill Pay was launched to major utility providers in five countries.

In early 2015, Xoom launchedits money transfer services to China.

Business Outlook

For Q12015,Xoom is targeting the following:

· Revenue to be between $42.0million and $44.0million.

· Adjusted EBITDA to be between $1.0 million and $3.0 million.

· GAAP net loss per diluted share to be in the range of $0.11to $0.05.

· Non-GAAP net income (loss)per diluted share to be in the range of $(0.02)to $0.03.

For Full Year 2015,Xoom is targeting the following:

· Revenue to be between $190.0millionand $195.0million.

· Adjusted EBITDA to be between  $20.0million and $25.0million.

· GAAP net income (loss)per diluted share to be in the range of $(0.05)to $0.07.

· Non-GAAP net income per diluted share to be in the range of $0.29to $0.40.

Updated Key Metrics Disclosure

Our business strategy and marketing efforts are designed to drive growth among all customers within our active customer base. As our business grows, previously inactive customers who transacted with us at least once and then return to transact with us for the first time in more than twelve months are steadily contributing to the growth of that base. We refer to these customers as “win-backs.”  Because win-backs have transacted with us before, they do not fall within our definition of “new customers,” a key metric we have disclosed in prior periods. We refer to the sum of “new customers” and “win-backs” as “gross additional customers.” To properly reflect the importance of both new customers and win-backs across all our product lines to our business, beginning in Q1 2015, we will disclose only gross customer additions in any given period. Management views the number of gross additional customers as a key driver of business growth and revenue, and moving to the gross additional customer metric more accurately reflects how we run the business.

We have provided historical data for gross additional customers and the cost per acquisition of a gross additional customer in the “Key Metrics” tables below, in addition to the previously disclosed key metrics.

Conference Call

Xoom plans to host a conference call today to review its fourth quarterand full year 2014 results and to discuss its financial outlookfor the firstquarter and full year 2015. The conference call can be accessed by dialing the toll free number(877) 440-7574or 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 atir.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 that enables consumers to send money to and pay bills for family and friends around the world in a secure, fast and cost-effective way, using their mobile phone, tablet or computer. During the 12 months ended December 31, 2014, Xoom’s more than 1.2 million active customers sent approximately $6.9 billion with Xoom. The company is headquartered in San Francisco and can be found online at www.xoom.com.

Forward-Looking Statements

This press release and Xoom’s 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 Xoom’s 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 United States or in countries to which its customers transfer money or pay bills; 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 Xoom’s 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 United States or in countries to which its customers transfer money or pay bills; 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 Xoom’s Annual Report on Form 10-K for the yearended December  31, 2013and any subsequently filed reports on Forms 10-Q and 8-K.All documents are available through the SEC’s Electronic Data Gathering Analysis and Retrieval system (“EDGAR”) at www.sec.gov or Xoom’s website at www.xoom.com.

Non-GAAP Financial Measures

Xoom’s stated results include certain non-GAAP financial measures, including Adjusted EBITDA, non-GAAP net incomeand non-GAAP net income per diluted share. Adjusted EBITDA excludes (benefit) provision for income taxes, interest expense, interest income, amortization of acquired intangible asset, depreciation and other amortization expense, expenses related to stock-based compensation, andbusiness e-mail compromise (“BEC”) fraud loss.  Depreciation and other amortization expense includes impairment related to long-lived assets. Non-GAAP net incomeand non-GAAP net incomeper diluted share exclude expenses related to stock-based compensation,amortization of acquired intangible asset, and business e-mail compromise (“BEC”) fraudloss. Adjusted EBITDA andnon-GAAP net incomeand non-GAAP net incomeper diluted shareexclude 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. A loss of $30.8 million due to business e-mail compromise (“BEC”) fraudhas been excluded from adjusted EBITDA andnon-GAAP net incometo reflect normalized business performance since it is expected to be a nonrecurring expense.  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 Xoom’s 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, CFA

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)

	December 31,		December 31,
	2014		2013
		(unaudited)	(derivedfromaudited financial statements)
Assets
Current assets:
Cash and cash equivalents	$	67,216	$	110,979
Disbursement prefunding		71,167		33,799
Short-term investments		111,777		104,678
Customer funds receivable		18,590		16,381
Prepaid expenses and other current assets		5,417		4,237
Total current assets		274,167		270,074
Non-current assets:
Property, equipment and software, net		15,670		4,855
Goodwill		9,032		—
Intangibles, net		5,129		250
Restricted cash		10,971		7,816
Other assets		755		1,084
Total assets	$	315,724	$	284,079
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued expenses	$	14,533	$	8,345
Customer liabilities		11,540		10,791
Line of credit		28,000		—
Total current liabilities		54,073		19,136
Non-current liabilities:
Non-current liabilities		5,885		99
Total liabilities		59,958		19,235
Commitments and Contingencies
Stockholders’ equity:
Convertible preferred stock, $0.0001 par value, 25,000,000 shares authorized; issued and outstanding 0 shares; aggregate liquidation preference $0 at December 31, 2014 and 2013		—		—
Common stock, $0.0001 par value, 500,000,000 shares authorized; issued and outstanding 38,592,808 and 37,583,945 shares at December 31, 2014 and 2013, respectively		4		4
Additional paid-in capital		339,169		321,878
Accumulated other comprehensive loss		(55)		—
Accumulated deficit		(83,352)		(57,038)
Total stockholders’ equity		255,766		264,844
Total liabilities and stockholders’ equity	$	315,724	$	284,079

XOOM CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

	ThreeMonths Ended				Twelve Months Ended
	December 31,				December 31,
	2014		2013		2014		2013
	(unaudited)				(unaudited)			(derived from audited financial statements)
Revenue	$	43,886	$	32,119	$	159,084	$	122,206
Cost of revenue		11,739		10,080		45,415		38,082
Gross profit		32,147		22,039		113,669		84,124
Marketing		9,336		7,015		32,667		25,926
Technology and development		10,312		6,016		36,981		22,451
Customer service and operations		4,566		3,713		17,314		13,552
General and administrative		5,186		3,791		20,902		13,145
Business e-mail compromise ("BEC") fraud loss		30,774		—		30,774		—
Total operating expense		60,174		20,535		138,638		75,074
Income (loss) from operations		(28,027)		1,504		(24,969)		9,050
Other income (expense):
Interest expense		(340)		(303)		(1,363)		(1,837)
Interest income		74		80		278		203
Other expense		(185)		(106)		(215)		(1,051)
Income (loss) before income taxes		(28,478)		1,175		(26,269)		6,365
(Benefit) provision for income taxes		(16)		22		45		37
Net income (loss)	$	(28,462)	$	1,153	$	(26,314)	$	6,328
Net income (loss) per share:
Basic	$	(0.74)	$	0.03	$	(0.69)	$	0.20
Diluted	$	(0.74)	$	0.03	$	(0.69)	$	0.17
Weighted-average shares used to compute net income (loss) per share:
Basic		38,521		37,494		38,195		30,906
Diluted		38,521		41,690		38,195		37,912

XOOM CORPORATION AND SUBSIDIARIES

Key Metrics

	ThreeMonths Ended				Twelve Months Ended
	December 31,				December 31,
	2014		2013		2014		2013
	(unaudited)				(unaudited)
Other Financial and Operational Data:
Gross Sending Volume (in thousands)	$	1,758,865	$	1,366,767	$	6,859,397	$	5,544,755
Transactions		3,477,440		2,744,000		12,763,407		9,988,000
Active Customers		1,278,646		1,059,689		1,278,646		1,059,689
Gross Additional Customers		145,209		132,117		554,543		543,555
New Customers		118,072		112,980		465,339		481,110
Cost Per Acquisition of a Gross Additional Customer	$	53	$	42	$	47	$	38
Cost Per Acquisition of a New Customer	$	65	$	49	$	56	$	43
Adjusted EBITDA (in thousands)	$	6,535	$	3,333	$	20,081	$	14,378

	Three Months Ended,
	Dec. 31,		Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
	2014		2014		2014		2014		2013		2013		2013		2013
	(unaudited)
Other Financial and Operational Data:
Gross Sending Volume (in thousands)	$	1,758,865	$	1,718,499	$	1,805,342	$	1,576,691	$	1,366,767	$	1,515,557	$	1,606,584	$	1,055,847
Transactions		3,477,440		3,197,129		3,192,199		2,896,639		2,744,000		2,623,000		2,582,000		2,039,000
Active Customers		1,278,646		1,221,733		1,195,425		1,130,367		1,059,689		997,753		919,610		841,819
Gross Additional Customers		145,209		118,964		153,961		136,409		132,117		139,079		151,092		121,267
New Customers		118,072		96,632		133,540		117,095		112,980		123,600		134,899		109,631
Cost Per Acquisition of a Gross Additional Customer	$	53	$	44	$	44	$	48	$	42	$	35	$	39	$	36
Cost Per Acquisition of a New Customer	$	65	$	54	$	50	$	56	$	49	$	40	$	44	$	40
Adjusted EBITDA (in thousands)	$	6,535	$	4,955	$	5,068	$	3,523	$	3,333	$	3,322	$	6,149	$	1,574

XOOM CORPORATION AND SUBSIDIARIES

Reconciliation of GAAP to Non-GAAP Operating Results

	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2014		2013		2014		2013
	(In thousands, except per share data)
	(unaudited)
Non-GAAP net income per share:
GAAP net income (loss)	$	(28,462)	$	1,153	$	(26,314)	$	6,328
Add back: stock-based compensation		2,540		1,232		9,416		4,069
Add back: amortization of acquired intangible asset		203		—		814		—
Add back: business e-mail compromise ("BEC") fraud loss		30,774		—		30,774		—
Non-GAAP net income	$	5,055	$	2,385	$	14,690	$	10,397
Non-GAAP net income per diluted share	$	0.12	$	0.06	$	0.35	$	0.27
Non-GAAP diluted shares		41,289		41,690		41,599		37,912
Reconciliation of Adjusted EBITDA:
Net income (loss)	$	(28,462)	$	1,153	$	(26,314)	$	6,328
(Benefit) provision for income taxes		(16)		22		45		37
Interest expense		340		303		1,363		1,837
Interest income		(74)		(80)		(278)		(203)
Amortization of acquired intangible asset		203		—		814		—
Depreciation and other amortization expense		1,230		703		4,261		2,310
Stock-based compensation		2,540		1,232		9,416		4,069
Business e-mail compromise ("BEC") fraud loss		30,774		—		30,774		—
Adjusted EBITDA	$	6,535	$	3,333	$	20,081	$	14,378

XOOM CORPORATION AND SUBSIDIARIES

Forward-Looking Guidance

	Three Months Ending				Twelve Months Ending
	March 31, 2015				December 31, 2015
	From		To		From		To
	(In thousands, except per share data)
Net income (loss) per share:
GAAP net income (loss)	$	(4,128)	$	(2,128)	$	(1,824)	$	3,176
Add back: stock-based compensation		3,221		3,221		13,290		13,290
Add back: amortization of acquired intangible asset		204		204		814		814
Non-GAAP net income (loss)	$	(703)	$	1,297	$	12,280	$	17,280
GAAP net income (loss) per diluted share	$	(0.11)	$	(0.05)	$	(0.05)	$	0.07
Non-GAAP net income (loss) per diluted share	$	(0.02)	$	0.03	$	0.29	$	0.40
GAAP diluted shares		38,840		38,840		39,449		42,917
Non-GAAP diluted shares		38,840		42,335		42,917		42,917
Adjusted EBITDA:
GAAP net income (loss)	$	(4,128)	$	(2,128)	$	(1,824)	$	3,176
Provision for income taxes		17		17		62		62
Interest expense		351		351		1,402		1,402
Interest income		(100)		(100)		(412)		(412)
Amortization of acquired intangible asset		204		204		814		814
Depreciation and other amortization expense		1,435		1,435		6,668		6,668
Stock-based compensation		3,221		3,221		13,290		13,290
Adjusted EBITDA	$	1,000	$	3,000	$	20,000	$	25,000