EX-99.1 2 a17-26098_1ex99d1.htm EX-99.1

Exhibit 99.1

 

TELARIA REPORTS THIRD QUARTER 2017 FINANCIAL RESULTS

 

Revenue increases 67% year-over-year with positive Adjusted EBITDA

 

New York, NY — November 7, 2017 — Telaria, Inc. (NYSE:TLRA), a leading video monetization software company, today announced financial results for the quarter ended September 30, 2017 that exceeded expectations across both revenue and Adjusted EBITDA.

 

Third Quarter Highlights:

 

·                  Revenue of $12.7 million, up 67% year-over-year

·                  Gross profit of $12.0 million, up 68% year-over-year

·                  Gross margin of 94%

·                  Adjusted EBITDA(1) of $0.4 million

 


(1)         Adjusted EBITDA is a non-GAAP financial measure.  Please see the discussion in the section called “Non-GAAP Financial Measures” and the reconciliations included at the end of this press release.

 

“This was a strong quarter, as we continued our mission to become the single, essential seller platform for the monetization and management of premium video anywhere.  Our results underscore our position as the leading independent video SSP, committed to transparency and premium inventory, focused on advanced solutions for CTV and OTT.  With market-leading technology, an exemplary team and deep premium publisher relationships, we believe that we have all the pieces in place to continue our momentum as we close out the year and head into 2018,” said Chief Executive Officer Mark Zagorski.

 

Third Quarter and Year-to-Date Results Summary

(in millions, except per share amounts), (unaudited)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,
2017

 

September 30,
2016

 

%
Change

 

September 30,
2017

 

September 30,
2016

 

%
Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

12.7

 

$

7.6

 

67

%

$

28.8

 

$

18.7

 

54

%

Gross profit

 

$

12.0

 

$

7.1

 

68

%

$

26.3

 

$

17.3

 

52

%

Net loss from continuing operations

 

$

(3.3

)

$

(4.1

)

20

%

$

(19.6

)

$

(20.8

)

6

%

Adjusted EBITDA

 

$

0.4

 

$

(2.0

)

NM

 

$

(9.6

)

$

(10.9

)

12

%

Net loss per share from continuing operations

 

$

(0.06

)

$

(0.08

)

25

%

$

(0.39

)

$

(0.40

)

3

%

 

Guidance

 

Based on information available as of November 7, 2017, the Company expects the following:

 

Fourth Quarter and Full Year 2017 Outlook

 

 

 

Q4 2017

 

Full Year 2017

 

 

 

 

 

 

 

Revenue

 

$14.5 - $16.5 million

 

$43.2 - $45.2 million

 

Adjusted EBITDA

 

$2.5 - $3.5 million

 

$(7.1) – $(6.1) million

 

 

1



 

Q3 2017 Financial Results Webcast:  The Company will host a conference call at 8:00 AM ET today to discuss the results. The conference call can be accessed toll-free at (877) 407-9039 or (201) 689-8470 (Toll/International). The call will also be broadcast simultaneously at http://telaria.com. Following completion of the call, a recorded replay of the webcast will be available on Telaria’s website. To listen to the telephone replay, call toll-free (844) 512-2921 or (412) 317-6671 (Toll/International), replay Pin #: 13672244. The telephone replay will be available from 11:00 AM ET November 7, 2017 through 11:59 PM ET November 14, 2017.  Additional investor information can be accessed at http://telaria.com.

 

About Telaria

 

Telaria (NYSE: TLRA) is the leading independent data-driven software platform built to monetize and manage premium video inventory with the greatest speed, control, and transparency, wherever and however audiences are watching.

 

“Safe Harbor” Statement: This press release contains forward-looking statements that involve risks, uncertainties, assumptions and other factors that could cause actual results and the timing of certain events to differ materially from those set forth in or implied by such forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including statements related to 2017 fourth quarter and full year financial guidance. Important factors that could cause actual results or the timing of events to differ materially from those set forth in or implied by any forward-looking statements include, without limitation, risks and uncertainties associated with: the company’s continuing development of its business model; the impact of the disposition of the company’s buyer platform on the company’s operations and financial results, including loss of synergies between the buyer platform and seller platform; unfavorable conditions in the global economy or reductions in digital advertising spend; the company’s ability to effectively innovate and adapt to rapidly changing technology and client needs; increased competition as well as innovations by new and existing competitors; expansion of the online video advertising market; the company’s ability to attract new demand partners and maintain relationships with current demand partners; the company’s ability to increase or maintain spend from existing demand partners, including the Tremor Video DSP buyer platform, which the company sold in August 2017; growth of OTT and connected TV markets; risks of entering new markets in which we have limited or no experience and difficulty adapting our solutions for new markets; the company’s ability to attract sellers of premium video advertising inventory to its platform and secure inventory on terms that are favorable to it; the company’s ability to detect fraudulent or malicious activity and ensure a high level of brand safety for its clients; identifying, attracting and retaining qualified personnel; defects, errors or interruptions in the company’s solutions; the company’s ability to collect and use data to deliver its solutions; the impact of tools that block the display of video ads; the effect of legal, regulatory developments and industry standards regarding internet privacy and other matters; maintaining, protecting and enhancing the company’s intellectual property; costs associated with defending intellectual property infringement, securities litigation and other claims; future opportunities and plans, including the uncertainty of expected future financial performance and results; as well as other risks and uncertainties detailed from time-to-time under the caption “Risk Factors” and elsewhere in the company’s filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2016, filed with the U.S. Securities and Exchange Commission on March 10, 2017, its Quarterly Report on Form 10-Q for the period ended March 31, 2017, filed with the U.S. Securities and Exchange Commission on May 10, 2017, its Quarterly Report on Form 10-Q for the quarter ended June 30, 2017, filed with the U.S. Securities and Exchange Commission on August 9, 2017, and future filings and reports

 

2



 

by the company, including its Quarterly Report on Form 10-Q for the quarter ended September 30, 2017.

 

Forward-looking statements are based on current expectations and beliefs and are not guarantees of future performance or events. Investors are cautioned not to place undue reliance on any forward-looking statements. Furthermore, forward-looking statements speak only as of the date on which they are made, and, except as required by law, Telaria disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.

 

Non-GAAP Financial Measures: To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles (“GAAP”), Telaria reports Adjusted EBITDA, which is a non-GAAP financial measure. We define Adjusted EBITDA as net loss before total interest expense and other income (expense), net, provision for income taxes, and depreciation and amortization expense, and adjusted to eliminate the impact of non-cash stock-based compensation expense, acquisition related costs, mark-to-market expense, executive severance, retention and recruiting costs, other professional fees, expenses for transitional services, other adjustments, and litigation costs. We use Adjusted EBITDA for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe that the use of Adjusted EBITDA provides useful information about our operating results, enhances the overall understanding of our past financial performance and future prospects, and allows for greater transparency with respect to a key metric that is used by management in its financial and operational decision making. Non-GAAP financial measures should be considered in addition to results and guidance prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. With respect to our expectations under “Guidance” above, reconciliation Adjusted EBITDA guidance to the closest corresponding GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the costs and charges excluded from this non-GAAP measure, in particular, the measures and effects of stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our stock price. We expect the variability of these costs and charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.

 

###

 

Investor Relations Contact:

Andrew Posen

Vice President, Head of Investor Relations

212-792-2315

IR@telaria.com

 

Media Contact:

Lekha Rao

Vice President, Media Relations & Corporate Communications

646-699-7706

lrao@telaria.com

 

3



 

Exhibit A

 

Telaria, Inc.

Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

 

September 30,

 

December 31,

 

 

 

2017

 

2016

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

77,173

 

$

43,160

 

Accounts receivable, net

 

48,784

 

29,429

 

Prepaid expenses and other current assets

 

2,076

 

1,718

 

Current assets of discontinued operations

 

 

50,285

 

Total current assets

 

128,033

 

124,592

 

Long-term assets:

 

 

 

 

 

Restricted cash

 

 

770

 

Property and equipment, net

 

4,990

 

7,263

 

Intangible assets, net

 

1,401

 

1,544

 

Goodwill

 

6,323

 

6,149

 

Other assets

 

1,104

 

1,416

 

Non-current assets of discontinued operations

 

 

12,491

 

Total long-term assets

 

13,818

 

29,633

 

Total assets

 

$

141,851

 

$

154,225

 

 

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable and accrued expenses

 

$

51,132

 

$

33,601

 

Deferred rent, short-term

 

788

 

669

 

Contingent consideration on acquisition, short-term

 

 

2,483

 

Deferred income

 

674

 

 

Other current liabilities

 

208

 

179

 

Current liabilities of discontinued operations

 

 

31,492

 

Total current liabilities

 

52,802

 

68,424

 

Long-term liabilities:

 

 

 

 

 

Deferred rent, long-term

 

5,453

 

5,996

 

Deferred tax liabilities

 

484

 

447

 

Other non-current liabilities

 

233

 

 

Non-current liabilities of discontinued operations

 

 

836

 

Total liabilities

 

58,972

 

75,703

 

Stockholders’ equity:

 

 

 

 

 

Common stock

 

5

 

5

 

Treasury stock

 

(8,443

)

(6,037

)

Additional paid-in capital

 

287,124

 

283,486

 

Accumulated other comprehensive loss

 

(246

)

(331

)

Accumulated deficit

 

(195,561

)

(198,601

)

Total stockholders’ equity

 

82,879

 

78,522

 

Total liabilities and stockholders’ equity

 

$

141,851

 

$

154,225

 

 

4



 

Telaria, Inc.

Consolidated Statements of Operations

(in thousands, except share and per share data)

(unaudited)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

 

2017

 

2016

 

2017

 

2016

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

12,715

 

$

7,633

 

$

28,788

 

$

18,744

 

Cost of revenue

 

764

 

510

 

2,445

 

1,442

 

Gross profit

 

11,951

 

7,123

 

26,343

 

17,302

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

Technology and development(1)

 

2,116

 

1,565

 

6,650

 

5,127

 

Sales and marketing(1)

 

7,461

 

5,359

 

21,687

 

16,362

 

General and administrative(1)

 

5,343

 

3,388

 

14,990

 

11,943

 

Depreciation and amortization

 

984

 

1,018

 

2,995

 

2,802

 

Mark-to-market(2)

 

 

6

 

148

 

1,095

 

Total operating expenses

 

15,904

 

11,336

 

46,470

 

37,329

 

 

 

 

 

 

 

 

 

 

 

Loss from continuing operations

 

(3,953

)

(4,213

)

(20,127

)

(20,027

)

 

 

 

 

 

 

 

 

 

 

Interest and other (expense) income, net:

 

 

 

 

 

 

 

 

 

Interest expense

 

(64

)

(4

)

(254

)

(19

)

Other (expense) income, net

 

715

 

72

 

800

 

(213

)

Total interest and other (expense) income, net

 

651

 

68

 

546

 

(232

)

 

 

 

 

 

 

 

 

 

 

Loss from continuing operations before income taxes

 

(3,302

)

(4,145

)

(19,581

)

(20,259

)

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

(29

)

(31

)

56

 

497

 

 

 

 

 

 

 

 

 

 

 

Loss from continuing operations, net of income taxes

 

$

(3,273

)

$

(4,114

)

$

(19,637

)

$

(20,756

)

 

 

 

 

 

 

 

 

 

 

Gain on sale of discontinued operations, net of income taxes

 

14,924

 

 

14,924

 

 

Income from discontinued operations, net of income taxes

 

643

 

497

 

7,847

 

210

 

Total income from discontinued operations, net of income taxes

 

$

15,567

 

$

497

 

$

22,771

 

$

210

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

12,294

 

$

(3,617

)

$

3,134

 

$

(20,546

)

 

 

 

 

 

 

 

 

 

 

Net earnings (loss) per share - basic and diluted:

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

(0.06

)

$

(0.08

)

$

(0.39

)

$

(0.40

)

Discontinued operations

 

$

0.30

 

$

0.01

 

$

0.45

 

$

0.01

 

Attributable to Telaria, Inc.

 

$

0.24

 

$

(0.07

)

$

0.06

 

$

(0.39

)

 

 

 

 

 

 

 

 

 

 

Weighted-average number of shares of common stock outstanding:

 

 

 

 

 

 

 

 

 

Basic and diluted

 

50,642,344

 

52,473,601

 

50,280,849

 

52,493,099

 

 


(1) Stock-based compensation expense included above:

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

 

2017

 

2016

 

2017

 

2016

 

 

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

Technology and development

 

$

155

 

$

131

 

$

455

 

$

336

 

Sales and marketing

 

902

 

83

 

1,252

 

362

 

General and administrative

 

477

 

397

 

1,323

 

1,155

 

Total in continuing operations

 

1,534

 

611

 

3,030

 

1,853

 

Discontinued operations

 

102

 

349

 

671

 

1,096

 

Total stock-based compensation expense

 

$

1,636

 

$

960

 

$

3,701

 

$

2,949

 

 


(2) Reflects expense incurred based on the Company’s re-measurement, at June 30, 2017 and September 30, 2016, of the estimated fair value of earn-out payments that were paid in connection with the acquisition of The Video Network Pty Ltd, an Australian proprietary limited company (“TVN”), and which are not conditioned on continued employment with the Company.

 

5



 

Telaria, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

Nine Months Ended

 

 

 

September 30,

 

 

 

2017

 

2016

 

 

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

 

Net loss from continuing operations

 

$

(19,637

)

$

(20,756

)

Net income from discontinued operations

 

22,771

 

210

 

 

 

 

 

 

 

Adjustments required to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

Depreciation and amortization expense

 

6,217

 

6,922

 

Gain on sale of discontinued operations, before income taxes

 

(15,222

)

 

Loss from sublease

 

 

341

 

Bad debt expense (recovery)

 

385

 

(61

)

Mark-to-market expense

 

148

 

1,095

 

Compensation expense related to acquisition contingent consideration

 

1,810

 

2,751

 

Loss on disposal of property and equipment

 

 

23

 

Stock-based compensation expense

 

3,706

 

2,949

 

Net changes in operating assets and liabilities:

 

 

 

 

 

(Increase) decrease in accounts receivable

 

(8,856

)

10,590

 

(Increase) decrease in prepaid expenses and other assets

 

(3,014

)

682

 

(Increase) decrease in restricted cash

 

770

 

(170

)

Increase (decrease) in accounts payable and accrued expenses

 

5,225

 

(9,815

)

Increase in other current liabilities

 

29

 

 

Decrease in contingent consideration on acquisition

 

(4,753

)

(3,406

)

Increase (decrease) in deferred rent

 

(143

)

889

 

Increase (decrease) in deferred tax liability

 

37

 

(8

)

Increase (decrease) in deferred income

 

902

 

(60

)

Net cash used in operating activities

 

(9,625

)

(7,824

)

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

Purchase of property and equipment

 

(1,017

)

(2,727

)

Cash received from sale of discontinued operations

 

49,000

 

 

Expenses paid with respect to sale of discontinued operations

 

(1,954

)

 

Net cash provided by (used in) investing activities

 

46,029

 

(2,727

)

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

Proceeds from common stock issuance

 

446

 

500

 

Decrease in contingent consideration on acquisition

 

 

(431

)

Proceeds from the exercise of stock options awards

 

403

 

150

 

Principal portion of capital lease payments

 

(215

)

 

Treasury stock - repurchase of stock

 

(2,406

)

(1,516

)

Tax withholdings related to net share settlements of restricted stock units

 

(1,011

)

(405

)

Net cash used in financing activities

 

(2,783

)

(1,702

)

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

33,621

 

(12,253

)

 

 

 

 

 

 

Effect of exchange rate changes in cash and cash equivalents

 

392

 

(82

)

 

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

43,160

 

59,887

 

Cash and cash equivalents at end of period

 

$

77,173

 

$

47,552

 

 

6



 

Exhibit B

 

Telaria, Inc.

Consolidated Quarterly Statement of Operations

(in thousands)

(unaudited)

 

 

 

Q1 2016

 

Q2 2016

 

Q3 2016

 

Q4 2016

 

Q1 2017

 

Q2 2017

 

Q3 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

5,409

 

$

5,702

 

$

7,633

 

$

10,377

 

$

6,139

 

$

9,934

 

$

12,715

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other cost of revenue

 

526

 

406

 

510

 

769

 

764

 

917

 

764

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

4,883

 

5,296

 

7,123

 

9,608

 

5,375

 

9,017

 

11,951

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Technology & development

 

1,951

 

1,611

 

1,565

 

1,967

 

2,425

 

2,109

 

2,116

 

Sales & marketing

 

5,708

 

5,295

 

5,359

 

5,781

 

6,526

 

7,700

 

7,461

 

General & administrative

 

4,717

 

3,838

 

3,388

 

4,147

 

4,873

 

4,774

 

5,343

 

Depreciation and amortization

 

815

 

969

 

1,018

 

952

 

1,021

 

990

 

984

 

Mark to market

 

1,044

 

45

 

6

 

168

 

55

 

93

 

 

Total operating expenses

 

14,235

 

11,758

 

11,336

 

13,015

 

14,900

 

15,666

 

15,904

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

(9,352

)

(6,462

)

(4,213

)

(3,407

)

(9,525

)

(6,649

)

(3,953

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest and other (expense) income, net

 

(254

)

(46

)

68

 

(20

)

(27

)

(78

)

651

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before provision for income taxes

 

(9,606

)

(6,508

)

(4,145

)

(3,427

)

(9,552

)

(6,727

)

(3,302

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

338

 

190

 

(31

)

(333

)

9

 

76

 

(29

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from continuing operations, net of income taxes

 

$

(9,944

)

$

(6,698

)

$

(4,114

)

$

(3,094

)

$

(9,561

)

$

(6,803

)

$

(3,273

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from discontinued operations, net of income taxes

 

(1,130

)

843

 

497

 

2,693

 

2,701

 

4,503

 

15,567

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(11,074

)

$

(5,855

)

$

(3,617

)

$

(401

)

$

(6,860

)

$

(2,300

)

$

12,294

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

(5,150

)

$

(3,782

)

$

(1,958

)

$

(835

)

$

(6,748

)

$

(3,227

)

$

416

 

 

7



 

Exhibit C

 

Telaria, Inc.

Reconciliation of Net Loss from Continuing Operations to Adjusted EBITDA

(in thousands)

(unaudited)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

 

2017

 

2016

 

2017

 

2016

 

 

 

 

 

 

 

 

 

 

 

Net loss from continuing operations

 

$

(3,273

)

$

(4,114

)

$

(19,637

)

$

(20,756

)

Adjustments:

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

984

 

1,018

 

2,995

 

2,802

 

Total interest and other expense (income), net

 

(651

)

(68

)

(546

)

232

 

Provision for income taxes

 

(29

)

(31

)

56

 

497

 

Stock-based compensation expense

 

1,534

 

611

 

3,030

 

1,853

 

Acquisition-related costs(1)

 

 

616

 

1,810

 

2,764

 

Mark-to-market expense(2)

 

 

6

 

148

 

1,095

 

Executive severance, retention and recruiting costs

 

887

 

(9

)

1,219

 

163

 

Other professional fees(3)

 

600

 

 

900

 

 

Expenses for transitional services(4)

 

364

 

 

364

 

 

Other adjustments(5)

 

 

 

102

 

266

 

Litigation costs

 

 

13

 

 

194

 

Total net adjustments

 

3,689

 

2,156

 

10,078

 

9,866

 

Adjusted EBITDA

 

$

416

 

$

(1,958

)

$

(9,559

)

$

(10,890

)

 


(1) Reflects acquisition-related costs incurred in connection with our acquisition of TVN.  Includes compensation-related expenses related to contingent consideration payments that were paid to certain TVN sellers that are subject to continued employment of $0 and $616 for the three months ended September 30, 2017 and 2016 respectively and $1,810 and $2,751 for the nine months ended September 30, 2017 and September 30, 2016, respectively.

 

(2) Reflects expense incurred based on the Company’s re-measurement, at June 30, 2017 and September 30, 2016, of the estimated fair value of earn-out payments that were paid in connection with the acquisition of TVN and which are not conditioned on continued employment with the Company.

 

(3) Professional fees incurred in connection with the Company’s sale of its buyer platform in August 2017.

 

(4) Reflects cost incurred providing transitional services to Taptica in connection with the Company’s sale of its buyer platform.

 

(5) Reflects amounts accrued in connection with a one-time change in the Company’s employee vacation policy.

 

8



 

Telaria, Inc.

Reconciliation of Net Loss from Continuing Operations to Adjusted EBITDA

(in thousands)

(unaudited)

 

 

 

Q1 2016

 

Q2 2016

 

Q3 2016

 

Q4 2016

 

Q1 2017

 

Q2 2017

 

Q3 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss from continuing operations

 

$

(9,944

)

$

(6,698

)

$

(4,114

)

$

(3,094

)

$

(9,561

)

$

(6,803

)

$

(3,273

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

815

 

969

 

1,018

 

952

 

1,021

 

990

 

984

 

Total interest and other expense (income), net

 

254

 

46

 

(68

)

20

 

27

 

78

 

(651

)

Provision for income taxes

 

338

 

190

 

(31

)

(333

)

9

 

76

 

(29

)

Stock-based compensation expense

 

572

 

670

 

611

 

633

 

744

 

752

 

1,534

 

Acquisition-related costs(1)

 

1,219

 

929

 

616

 

819

 

825

 

985

 

 

Mark-to-market expense(2)

 

1,044

 

45

 

6

 

168

 

55

 

93

 

 

Executive severance, retention and recruiting costs

 

105

 

67

 

(9

)

 

30

 

302

 

887

 

Other professional fees(3)

 

 

 

 

 

 

300

 

600

 

Expenses for transitional services(4)

 

 

 

 

 

 

 

364

 

Other adjustments(5)

 

266

 

 

 

 

102

 

 

 

Litigation costs

 

181

 

 

13

 

 

 

 

 

Total net adjustments

 

4,794

 

2,916

 

2,156

 

2,259

 

2,813

 

3,576

 

3,689

 

Adjusted EBITDA

 

$

(5,150

)

$

(3,782

)

$

(1,958

)

$

(835

)

$

(6,748

)

$

(3,227

)

$

416

 

 


(1) Reflects acquisition-related costs incurred in connection with our acquisition of TVN.  Includes compensation-related expenses related to contingent consideration payments that were paid to certain TVN sellers that are subject to continued employment.

 

(2) Reflects expense incurred based on the Company’s re-measurement of the estimated fair value of earn-out payments that were paid in connection with the acquisition of TVN and which are not conditioned on continued employment with the Company.

 

(3) Professional fees incurred in connection with the Company’s sale of its buyer platform in August 2017.

 

(4) Reflects cost incurred providing transitional services to Taptica in connection with the Company’s sale of its buyer platform.

 

(5) Reflects amounts accrued in connection with a one-time change in the Company’s employee vacation policy.

 

9