Delaware | ||||
(State or Other Jurisdiction of Incorporation) | ||||
001-33554 | 76-0168604 | |||
(Commission File Number) | (IRS Employer Identification No.) |
3100 Main Street, Suite 900 Houston TX | 77002 | |||||||
(Address of Principal Executive Offices) | (Zip Code) | |||||||
Registrant’s telephone number, including area code | (713) 335-5151 | |||||||
(Former Name or Former Address, if Changed Since Last Report) |
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)) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | |||
Common stock | $0.001 par value per share | PRO | New York Stock Exchange |
Item 2.02. | Results of Operations and Financial Condition. |
Exhibit No. | Description | |
99.1 |
PROS HOLDINGS, INC. | ||
July 25, 2019 | /s/ Stefan Schulz | |
Stefan Schulz | ||
Executive Vice President and Chief Financial Officer |
Exhibit No. | Description | |
99.1 |
• | Total revenue of $63.9 million, up 35% year-over-year. |
• | Subscription revenue of $33.1 million, up 50% year-over-year. |
• | Subscription gross margins of 70% and non-GAAP subscription margin of 73%, up more than 700 basis points year-over-year. |
GAAP | Non-GAAP | ||||||||||
Q2 2019 | Q2 2018 | Change | Q2 2019 | Q2 2018 | Change | ||||||
Revenue: | |||||||||||
Total Revenue | $63.9 | $47.4 | 35% | n/a | n/a | n/a | |||||
Subscription Revenue | $33.1 | $22.0 | 50% | n/a | n/a | n/a | |||||
Subscription and Maintenance Revenue | $48.1 | $38.3 | 26% | n/a | n/a | n/a | |||||
Profitability: | |||||||||||
Gross Profit | $40.3 | $28.7 | 40% | $41.9 | $30.3 | 39% | |||||
Operating Loss | $(12.1) | $(13.0) | $0.9 | $(3.9) | $(5.6) | $1.8 | |||||
Net Loss | $(17.5) | $(16.8) | $(0.7) | $(2.8) | $(5.2) | $2.4 | |||||
Net Loss Per Share | $(0.44) | $(0.52) | $0.08 | $(0.07) | $(0.16) | $0.09 | |||||
Adjusted EBITDA | n/a | n/a | n/a | $(1.8) | $(5.4) | $3.7 | |||||
Cash: | |||||||||||
Net Cash Used in Operating Activities | $(3.5) | $(3.6) | $0.0 | n/a | n/a | n/a | |||||
Free Cash Flow | n/a | n/a | n/a | $(5.2) | $(5.2) | $(0.1) |
• | Increased attendance of the PROS 2019 Outperform Customer Conference by more than 25% year-over-year as business leaders from nearly 40 countries gathered to learn how to transform a company’s selling experience to win in the digital economy. |
• | Released the findings of PROS global survey of more than 1,000 procurement and purchasing leaders named “What B2B Buyers Want in 2019: Speed, Personalization and Intelligence”, which reveals that as buying needs have shifted, respondents prioritize self-service, value personalized experiences and expect fast responses to their quote requests. |
• | Successfully completed an offering of $143.8 million aggregate principal amount of convertible senior notes due in 2024 in a private placement and used a significant portion of the net proceeds from the offering to retire the majority of PROS’ outstanding 2.0% Convertible Senior Notes due in 2019. |
Q3 2019 Guidance | v. Q3 2018 at Mid-Point | Full Year 2019 Guidance | v. Prior Year at Mid-Point | ||||
Total Revenue | $63.0 to $63.5 | 29% | $247.0 to $248.0 | 26% | |||
Subscription Revenue | $36.0 to $36.5 | 52% | $137.5 to $138.5 | 45% | |||
ARR | n/a | n/a | $220.0 to $222.0 | 17% | |||
Non-GAAP Loss Per Share | $(0.09) to $(0.07) | $0.05 | n/a | n/a | |||
Adjusted EBITDA | $(2.5) to $(1.5) | $2.9 | $(9.5) to $(8.5) | $10.0 | |||
Free Cash Flow | n/a | n/a | $0.0 to $2.0 | $1.5 |
• | Share-Based Compensation: Although share-based compensation is an important aspect of compensation for our employees and executives, our share-based compensation expense can vary because of changes in our stock price and market conditions at the time of grant, varying valuation methodologies, and the variety of award types. Since share-based compensation expense can vary for reasons that are generally unrelated to our performance during any particular period, we believe this could make it difficult for investors to compare our current financial results to previous and future periods. Therefore, we believe it is useful to exclude share-based compensation in order to better understand our business performance and allow investors to compare our operating results with peer companies. |
• | Amortization of Acquisition-Related Intangibles: We view amortization of acquisition-related intangible assets, such as the amortization of the cost associated with an acquired company's research and development efforts, trade names, customer lists and customer relationships, as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are continually evaluated for impairment, amortization of the cost of purchased intangibles is a static expense, one that is not typically affected by operations during any particular period. |
• | Acquisition-Related Expenses: Acquisition-related expenses include integration costs and other one-time direct costs associated with our acquisitions. These amounts are unrelated to our core performance during any particular period and are impacted by the timing and size of the acquisitions. We exclude acquisition-related expenses to provide investors a method to compare our operating results to prior periods and to peer companies because such amounts can vary significantly based on the frequency of acquisitions and magnitude of acquisition expenses. |
• | Amortization of Debt Discount and Issuance Costs: Amortization of debt discount and issuance costs are related to our convertible notes. These amounts are unrelated to our core performance during any particular period, and therefore, we believe it is useful to exclude these amounts in order to better understand our business performance and allow investors to compare our results with peer companies. |
• | New Headquarters Noncash Rent Expense: Noncash rent expense is related to our new corporate headquarters and is incurred prior to occupation of this facility. These amounts are unrelated to our core performance during any particular period and we believe this could make it difficult for investors to compare our current financial results to previous and future periods. Therefore, we believe it is useful to exclude the noncash rent expense on the preoccupied new headquarters in order for investors to better understand our business performance and allow investors to compare our operating results with peer companies. |
• | Debt extinguishment fees: Debt extinguishment fees relate to third party fees incurred in connection with the partial retirement of our senior convertible notes due in December 2019. These amounts are unrelated to our core performance during any particular period and we believe this could make it difficult for investors to compare our current financial results to previous and future periods. Therefore, we believe it is useful to exclude the debt extinguishment fees in order for investors to better understand our business performance and allow investors to compare our operating results with peer companies. |
• | Loss on debt extinguishment: Loss on debt extinguishment relates to the partial retirement of our senior convertible notes due in December 2019. This amounts is unrelated to our core performance during any particular period and we believe this could make it difficult for investors to compare our current financial results to previous and future periods. Therefore, we believe it is useful to exclude the loss on debt extinguishment in order for investors to better understand our business performance and allow investors to compare our operating results with peer companies. |
• | Taxes: We exclude the tax consequences associated with non-GAAP items to provide investors with a useful comparison of our operating results to prior periods and to our peer companies because such amounts can vary significantly. In the fourth quarter of 2014, we concluded that it is more likely than not that we will be unable to fully realize our deferred tax assets and accordingly, established a valuation allowance against those assets. The ongoing impact of the valuation allowance on our non-GAAP effective tax rate has been eliminated to allow investors to better understand our business performance and compare our operating results with peer companies. |
June 30, 2019 | December 31, 2018 | |||||||
Assets: | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 329,562 | $ | 295,476 | ||||
Trade and other receivables, net of allowance of $977 and $978, respectively | 53,069 | 41,822 | ||||||
Deferred costs, current | 4,927 | 4,089 | ||||||
Prepaid and other current assets | 7,692 | 4,756 | ||||||
Total current assets | 395,250 | 346,143 | ||||||
Property and equipment, net | 15,128 | 14,676 | ||||||
Operating lease right-of-use assets | 23,215 | — | ||||||
Deferred costs, noncurrent | 14,468 | 13,373 | ||||||
Intangibles, net | 15,845 | 19,354 | ||||||
Goodwill | 38,161 | 38,231 | ||||||
Other assets, noncurrent | 5,832 | 5,190 | ||||||
Total assets | $ | 507,899 | $ | 436,967 | ||||
Liabilities and Stockholders’ Equity: | ||||||||
Current liabilities: | ||||||||
Accounts payable and other liabilities | $ | 6,948 | $ | 6,934 | ||||
Accrued liabilities | 13,314 | 9,506 | ||||||
Accrued payroll and other employee benefits | 18,499 | 22,519 | ||||||
Operating lease liabilities, current | 5,326 | — | ||||||
Deferred revenue, current | 113,808 | 99,262 | ||||||
Current portion of convertible debt, net | 21,121 | 136,529 | ||||||
Total current liabilities | 179,016 | 274,750 | ||||||
Deferred revenue, noncurrent | 14,795 | 17,903 | ||||||
Convertible debt, net, noncurrent | 198,428 | 88,661 | ||||||
Operating lease liabilities, noncurrent | 19,415 | — | ||||||
Other liabilities, noncurrent | 751 | 754 | ||||||
Total liabilities | 412,405 | 382,068 | ||||||
Stockholders' equity: | ||||||||
Preferred stock, $0.001 par value, 5,000,000 shares authorized; none issued | — | — | ||||||
Common stock, $0.001 par value, 75,000,000 shares authorized; 44,601,308 and 41,573,491 shares issued, respectively; 40,183,723 and 37,155,906 shares outstanding, respectively | 45 | 42 | ||||||
Additional paid-in capital | 439,995 | 364,877 | ||||||
Treasury stock, 4,417,585 common shares, at cost | (13,938 | ) | (13,938 | ) | ||||
Accumulated deficit | (327,142 | ) | (292,708 | ) | ||||
Accumulated other comprehensive loss | (3,466 | ) | (3,374 | ) | ||||
Total stockholders’ equity | 95,494 | 54,899 | ||||||
Total liabilities and stockholders’ equity | $ | 507,899 | $ | 436,967 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Revenue: | ||||||||||||||||
Subscription | $ | 33,080 | $ | 22,038 | $ | 63,495 | $ | 42,988 | ||||||||
Maintenance and support | 15,040 | 16,225 | 30,367 | 32,799 | ||||||||||||
Total subscription, maintenance and support | 48,120 | 38,263 | 93,862 | 75,787 | ||||||||||||
License | 2,028 | 695 | 2,534 | 1,761 | ||||||||||||
Services | 13,730 | 8,468 | 23,613 | 17,788 | ||||||||||||
Total revenue | 63,878 | 47,426 | 120,009 | 95,336 | ||||||||||||
Cost of revenue: | ||||||||||||||||
Subscription | 9,779 | 8,491 | 19,504 | 17,255 | ||||||||||||
Maintenance and support | 2,835 | 2,953 | 5,637 | 5,910 | ||||||||||||
Total cost of subscription, maintenance and support | 12,614 | 11,444 | 25,141 | 23,165 | ||||||||||||
License | 40 | 64 | 101 | 137 | ||||||||||||
Services | 10,929 | 7,216 | 19,131 | 14,943 | ||||||||||||
Total cost of revenue | 23,583 | 18,724 | 44,373 | 38,245 | ||||||||||||
Gross profit | 40,295 | 28,702 | 75,636 | 57,091 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling and marketing | 22,945 | 18,590 | 44,430 | 36,158 | ||||||||||||
General and administrative | 12,040 | 10,145 | 23,707 | 20,834 | ||||||||||||
Research and development | 17,455 | 12,960 | 33,254 | 27,744 | ||||||||||||
Acquisition-related | — | — | — | 95 | ||||||||||||
Loss from operations | (12,145 | ) | (12,993 | ) | (25,755 | ) | (27,740 | ) | ||||||||
Convertible debt interest and amortization | (4,274 | ) | (4,226 | ) | (8,630 | ) | (8,405 | ) | ||||||||
Other (expense) income, net | (862 | ) | 244 | 409 | 446 | |||||||||||
Loss before income tax provision (benefit) | (17,281 | ) | (16,975 | ) | (33,976 | ) | (35,699 | ) | ||||||||
Income tax provision (benefit) | 236 | (131 | ) | 458 | 1 | |||||||||||
Net loss | $ | (17,517 | ) | $ | (16,844 | ) | $ | (34,434 | ) | $ | (35,700 | ) | ||||
Net loss per share: | ||||||||||||||||
Basic and diluted | $ | (0.44 | ) | $ | (0.52 | ) | $ | (0.89 | ) | $ | (1.10 | ) | ||||
Weighted average number of shares: | ||||||||||||||||
Basic and diluted | 39,413 | 32,651 | 38,518 | 32,514 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Operating activities: | ||||||||||||||||
Net loss | $ | (17,517 | ) | $ | (16,844 | ) | $ | (34,434 | ) | $ | (35,700 | ) | ||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||
Depreciation and amortization | 3,504 | 3,256 | 6,829 | 6,620 | ||||||||||||
Amortization of debt discount and issuance costs | 3,179 | 2,988 | 6,295 | 5,929 | ||||||||||||
Share-based compensation | 5,979 | 5,462 | 12,025 | 11,398 | ||||||||||||
Deferred income tax, net | — | (252 | ) | — | (252 | ) | ||||||||||
Provision for doubtful accounts | — | 215 | — | 215 | ||||||||||||
Loss on disposal of assets | — | 2 | — | 37 | ||||||||||||
Loss on debt extinguishment | 2,266 | — | 2,266 | — | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts and unbilled receivables | (7,474 | ) | (10,556 | ) | (11,247 | ) | (7,102 | ) | ||||||||
Deferred costs | (1,040 | ) | (880 | ) | (1,933 | ) | (642 | ) | ||||||||
Prepaid expenses and other assets | (1,458 | ) | 1,513 | (3,523 | ) | (62 | ) | |||||||||
Accounts payable and other liabilities | (1,133 | ) | 1,039 | (568 | ) | 1,729 | ||||||||||
Accrued liabilities | 2,597 | 3,529 | 5,231 | 2,114 | ||||||||||||
Accrued payroll and other employee benefits | 7,759 | 3,854 | (4,020 | ) | (4,327 | ) | ||||||||||
Deferred revenue | (211 | ) | 3,096 | 11,435 | 11,733 | |||||||||||
Net cash used in operating activities | (3,549 | ) | (3,578 | ) | (11,644 | ) | (8,310 | ) | ||||||||
Investing activities: | ||||||||||||||||
Purchases of property and equipment | (1,696 | ) | (409 | ) | (2,307 | ) | (1,187 | ) | ||||||||
Capitalized internal-use software development costs | — | (1,168 | ) | (868 | ) | (2,484 | ) | |||||||||
Purchase of equity securities | (68 | ) | — | (68 | ) | — | ||||||||||
Purchase of intangible asset | — | — | (50 | ) | — | |||||||||||
Net cash used in investing activities | (1,764 | ) | (1,577 | ) | (3,293 | ) | (3,671 | ) | ||||||||
Financing activities: | ||||||||||||||||
Exercise of stock options | — | 326 | — | 1,201 | ||||||||||||
Proceeds from employee stock plans | — | — | 943 | 834 | ||||||||||||
Tax withholding related to net share settlement of stock awards | (4,403 | ) | (1,713 | ) | (18,642 | ) | (8,968 | ) | ||||||||
Payments of notes payable | — | 3 | — | (55 | ) | |||||||||||
Proceeds from issuance of convertible debt, net | 140,156 | — | 140,156 | — | ||||||||||||
Debt issuance costs related to convertible debt | (648 | ) | — | (648 | ) | — | ||||||||||
Purchase of capped call | (16,445 | ) | — | (16,445 | ) | — | ||||||||||
Retirement of convertible debt | (75,958 | ) | — | (75,958 | ) | — | ||||||||||
Proceeds from termination of bond hedge | 64,819 | — | 64,819 | — | ||||||||||||
Payment for termination of warrant | (45,243 | ) | — | (45,243 | ) | — | ||||||||||
Net cash provided by (used in) financing activities | 62,278 | (1,384 | ) | 48,982 | (6,988 | ) | ||||||||||
Effect of foreign currency rates on cash | (39 | ) | 260 | 41 | 331 | |||||||||||
Net change in cash and cash equivalents | 56,926 | (6,279 | ) | 34,086 | (18,638 | ) | ||||||||||
Cash and cash equivalents: | ||||||||||||||||
Beginning of period | 272,636 | 148,146 | 295,476 | 160,505 | ||||||||||||
End of period | $ | 329,562 | $ | 141,867 | $ | 329,562 | $ | 141,867 |
Three Months Ended June 30, | Quarter over Quarter | Six Months Ended June 30, | Year over Year | |||||||||||||||||||||
2019 | 2018 | % change | 2019 | 2018 | % change | |||||||||||||||||||
GAAP gross profit | $ | 40,295 | $ | 28,702 | 40 | % | $ | 75,636 | $ | 57,091 | 32 | % | ||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||
New headquarters noncash rent expense | 160 | — | 313 | — | ||||||||||||||||||||
Amortization of acquisition-related intangibles | 993 | 1,181 | 2,027 | 2,422 | ||||||||||||||||||||
Share-based compensation | 494 | 398 | 1,032 | 880 | ||||||||||||||||||||
Non-GAAP gross profit | $ | 41,942 | $ | 30,281 | 39 | % | $ | 79,008 | $ | 60,393 | 31 | % | ||||||||||||
Non-GAAP gross margin | 65.7 | % | 63.8 | % | 65.8 | % | 63.3 | % | ||||||||||||||||
GAAP loss from operations | $ | (12,145 | ) | $ | (12,993 | ) | (7 | )% | $ | (25,755 | ) | $ | (27,740 | ) | (7 | )% | ||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||
Acquisition-related expenses | — | — | — | 95 | ||||||||||||||||||||
Debt extinguishment fees | 319 | — | 319 | — | ||||||||||||||||||||
New headquarters noncash rent expense | 555 | — | 1,109 | — | ||||||||||||||||||||
Amortization of acquisition-related intangibles | 1,425 | 1,897 | 3,008 | 3,912 | ||||||||||||||||||||
Share-based compensation | 5,979 | 5,462 | 12,025 | 11,398 | ||||||||||||||||||||
Total Non-GAAP adjustments | 8,278 | 7,359 | 16,461 | 15,405 | ||||||||||||||||||||
Non-GAAP loss from operations | $ | (3,867 | ) | $ | (5,634 | ) | (31 | )% | $ | (9,294 | ) | $ | (12,335 | ) | (25 | )% | ||||||||
Non-GAAP loss from operations % of total revenue | (6.1 | )% | (11.9 | )% | (7.7 | )% | (12.9 | )% | ||||||||||||||||
GAAP net loss | $ | (17,517 | ) | $ | (16,844 | ) | 4 | % | $ | (34,434 | ) | $ | (35,700 | ) | (4 | )% | ||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||
Total Non-GAAP adjustments affecting loss from operations | 8,278 | 7,359 | 16,461 | 15,405 | ||||||||||||||||||||
Amortization of debt discount and issuance costs | 3,168 | 2,976 | 6,274 | 5,905 | ||||||||||||||||||||
Loss on debt extinguishment | 2,266 | — | 2,266 | — | ||||||||||||||||||||
Tax impact related to non-GAAP adjustments | 1,022 | 1,330 | 2,433 | 3,167 | ||||||||||||||||||||
Non-GAAP net loss | $ | (2,783 | ) | $ | (5,179 | ) | (46 | )% | $ | (7,000 | ) | $ | (11,223 | ) | (38 | )% | ||||||||
Non-GAAP diluted loss per share | $ | (0.07 | ) | $ | (0.16 | ) | $ | (0.18 | ) | $ | (0.35 | ) | ||||||||||||
Shares used in computing non-GAAP loss per share | 39,413 | 32,651 | 38,518 | 32,514 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Cost of Subscription Items | ||||||||||||||||||||
New headquarters noncash rent expense | 16 | — | 32 | — | ||||||||||||||||
Amortization of acquisition-related intangibles | 821 | 997 | 1,680 | 2,050 | ||||||||||||||||
Share-based compensation | 68 | 35 | 139 | 88 | ||||||||||||||||
Total cost of subscription items | $ | 905 | $ | 1,032 | $ | 1,851 | $ | 2,138 | ||||||||||||
Cost of Maintenance Items | ||||||||||||||||||||
New headquarters noncash rent expense | 28 | — | 56 | — | ||||||||||||||||
Amortization of acquisition-related intangibles | 162 | 172 | 326 | 349 | ||||||||||||||||
Share-based compensation | 44 | 54 | 104 | 132 | ||||||||||||||||
Total cost of maintenance items | $ | 234 | $ | 226 | $ | 486 | $ | 481 | ||||||||||||
Cost of License Items | ||||||||||||||||||||
Amortization of acquisition-related intangibles | 10 | 12 | 21 | 23 | ||||||||||||||||
Total cost of license items | $ | 10 | $ | 12 | $ | 21 | $ | 23 | ||||||||||||
Cost of Services Items | ||||||||||||||||||||
New headquarters noncash rent expense | 116 | — | 225 | — | ||||||||||||||||
Share-based compensation | 382 | 309 | 789 | 660 | ||||||||||||||||
Total cost of services items | $ | 498 | $ | 309 | $ | 1,014 | $ | 660 | ||||||||||||
Sales and Marketing Items | ||||||||||||||||||||
New headquarters noncash rent expense | 103 | — | 206 | — | ||||||||||||||||
Amortization of acquisition-related intangibles | 432 | 716 | 981 | 1,490 | ||||||||||||||||
Share-based compensation | 1,414 | 1,284 | 2,814 | 2,568 | ||||||||||||||||
Total sales and marketing items | $ | 1,949 | $ | 2,000 | $ | 4,001 | $ | 4,058 | ||||||||||||
General and Administrative Items | ||||||||||||||||||||
New headquarters noncash rent expense | 88 | — | 181 | — | ||||||||||||||||
Debt extinguishment fees | 319 | — | 319 | — | ||||||||||||||||
Share-based compensation | 2,808 | 2,688 | 5,620 | 5,567 | ||||||||||||||||
Total general and administrative items | $ | 3,215 | $ | 2,688 | $ | 6,120 | $ | 5,567 | ||||||||||||
Research and Development Items | ||||||||||||||||||||
New headquarters noncash rent expense | 204 | — | 409 | — | ||||||||||||||||
Share-based compensation | 1,263 | 1,092 | 2,559 | 2,383 | ||||||||||||||||
Total research and development items | $ | 1,467 | $ | 1,092 | $ | 2,968 | $ | 2,383 | ||||||||||||
Acquisition-related expenses | $ | — | $ | — | $ | — | $ | 95 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Adjusted EBITDA | ||||||||||||||||||||
GAAP Loss from Operations | $ | (12,145 | ) | $ | (12,993 | ) | $ | (25,755 | ) | $ | (27,740 | ) | ||||||||
Acquisition-related expenses | — | — | — | 95 | ||||||||||||||||
Amortization of acquisition-related intangibles | 1,425 | 1,897 | 3,008 | 3,912 | ||||||||||||||||
New headquarters noncash rent expense | 555 | — | 1,109 | — | ||||||||||||||||
Debt extinguishment fees | 319 | — | 319 | — | ||||||||||||||||
Share-based compensation | 5,979 | 5,462 | 12,025 | 11,398 | ||||||||||||||||
Depreciation and other amortization | 2,079 | 1,359 | 3,821 | 2,708 | ||||||||||||||||
Capitalized internal-use software development costs | — | (1,168 | ) | (868 | ) | (2,484 | ) | |||||||||||||
Adjusted EBITDA | $ | (1,788 | ) | $ | (5,443 | ) | $ | (6,341 | ) | $ | (12,111 | ) | ||||||||
Free Cash Flow | ||||||||||||||||||||
Net cash used in operating activities | $ | (3,549 | ) | $ | (3,578 | ) | $ | (11,644 | ) | $ | (8,310 | ) | ||||||||
Purchase of property and equipment (excluding new headquarters) | (1,658 | ) | (409 | ) | (2,269 | ) | (1,187 | ) | ||||||||||||
Purchase of intangible asset | — | — | (50 | ) | — | |||||||||||||||
Capitalized internal-use software development costs | — | (1,168 | ) | (868 | ) | (2,484 | ) | |||||||||||||
Free Cash Flow | $ | (5,207 | ) | $ | (5,155 | ) | $ | (14,831 | ) | $ | (11,981 | ) | ||||||||
Guidance | Q3 2019 Guidance | Full Year 2019 Guidance | ||||||||||||||||||
Low | High | Low | High | |||||||||||||||||
Adjusted EBITDA | ||||||||||||||||||||
GAAP Loss from Operations | $ | (13,000 | ) | $ | (12,000 | ) | $ | (49,500 | ) | $ | (48,500 | ) | ||||||||
Amortization of acquisition-related intangibles | 1,400 | 1,400 | 5,700 | 5,700 | ||||||||||||||||
New headquarters noncash rent expense | 600 | 600 | 2,000 | 2,000 | ||||||||||||||||
Share-based compensation | 6,200 | 6,200 | 24,500 | 24,500 | ||||||||||||||||
Depreciation and other amortization | 2,300 | 2,300 | 8,300 | 8,300 | ||||||||||||||||
Capitalized internal-use software development costs | — | — | (500 | ) | (500 | ) | ||||||||||||||
Adjusted EBITDA | $ | (2,500 | ) | $ | (1,500 | ) | $ | (9,500 | ) | $ | (8,500 | ) |