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
May 6, 2015
Date of Report (Date of earliest event reported)
New Relic, Inc.
(Exact name of registrant as specified in its charter)
Delaware | 001-36766 | 26-2017431 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification Number) |
188 Spear Street, Suite 1200
San Francisco, California 94105
(Address of principal executive offices, including zip code)
(650) 777-7600
(Registrants telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations 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 May 12, 2015, New Relic, Inc. (the Company) issued a press release announcing its financial results for the fourth quarter and fiscal year ended March 31, 2015. A copy of the press release is attached as Exhibit 99.1 to this Current Report and is incorporated herein by reference.
The information in this Item 2.02, including the press release attached as Exhibit 99.1 hereto, is furnished pursuant to Item 2.02 but shall not be deemed filed for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that Section, nor shall it be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
Item 5.02. Departure of Certain Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
(b) | Resignation of Chief Marketing Officer |
On May 11, 2015, Patrick Moran notified the Company that he is resigning as Chief Marketing Officer of the Company, effective as of July 1, 2015 (the Separation Date), and that he plans to work with emerging leaders as an entrepreneur-in-residence at Benchmark Capital. The Company entered into a Separation Agreement, dated May 11, 2015 (the Separation Agreement), with Mr. Moran to govern the terms of a transition period with Mr. Moran through the Separation Date. Until the Separation Date, Mr. Moran has agreed to perform his current duties, transition his work load, and provide other transition assistance as requested by the Company and the Company will continue to pay Mr. Moran his regular base salary and he will continue to participate in the employee benefit plans in which he is enrolled. The Separation Agreement provides, among other things, that, conditioned upon performance of certain terms in the Separation Agreement, including signing a release of claims and confidentiality obligations, the Company will extend the exercisability of Mr. Morans options grants post-termination until the earlier of a change in control of the Company and January 15, 2016.
(e) | Equity Awards |
On May 6, 2015, the Compensation Committee (the Compensation Committee) of the Board of Directors (the Board) of the Company, pursuant to the authority delegated to it by the Board and in accordance with prior practice, determined annual merit incentive grants to, and set cash and bonus compensation for, the Companys executive officers within the meaning of Rule 3b-7 of the Exchange Act. The Compensation Committee determined that annual merit equity grants to the executive officers may contain (a) options to purchase shares of the Companys Common Stock (Options) and (b) restricted stock units of the Companys Common Stock (RSUs). The Compensation Committee approved grants of Options and RSUs (collectively, the Equity Awards) for certain of the Companys named executive officers (as defined in Item 402(a)(3) of Regulation S-K promulgated by the Securities and Exchange Commission (the SEC)), as set forth in the table below. All Equity Awards were pursuant to, and in accordance with, the terms and conditions of the Companys 2014 Equity Incentive Plan (the Plan), the Forms of Option Agreement and Stock Option Grant Notice and the Forms of Restricted Stock Unit Award Agreement and Restricted Stock Unit Award Grant Notice previously filed with the SEC. Each Option will have an exercise price equal to the closing price of the Companys Common Stock reported by the New York Stock Exchange on the date of grant, which for the Equity Awards will be May 15, 2015, which represents the fair market value of the Companys Common Stock on the date of grant as determined under the terms of the Plan, and a term of 10 years from the date of grant.
Name |
Job Title |
Value of Stock Options |
Number of Stock Options |
Value of RSUs | Number of RSUs | |||||||||
Cook, Chris |
President and Chief Operating Officer | $ | 383,375 | (1) | $ | 383,375 | (2) | |||||||
Sachleben, Mark |
Chief Financial Officer | $ | 766,750 | (1) | $ | 766,750 | (2) |
(1) | The number of shares of the Companys Common Stock subject to the Options shall be determined on May 15, 2015 using the same method the Company uses to calculate fair market value of stock options in its financial statements, using the closing price as reported on the New York Stock Exchange on May 15, 2015, except that no provision shall be made for estimated forfeitures related to service-based vesting. Each Option shall be an incentive stock option to the fullest extent permissible, and thereafter, a nonstatutory stock option. |
(2) | The number of RSUs shall be determined based on the fair market value per share of the Companys Common Stock on May 15, 2015, using the closing price as reported on the New York Stock Exchange on May 15, 2015. |
Item 8.01 Other Events.
Pursuant to an early release letter executed on May 11, 2015, Morgan Stanley & Co. LLC on behalf of itself and as a representative of the underwriters for the Companys initial public offering in December 2014, consented to a limited early release from the 180-day lock-up restrictions scheduled to expire end of day on June 9, 2015 (the Early Release). The Early Release will take effect on June 1, 2015, and a limited number of shares may be sold on or after that date, subject to securities law limitations. The Early Release will allow certain non-executive employees and consultants of the Company to sell up to one-third of the shares that are held as of June 1, 2015 or are vested and exercisable pursuant to options held as of June 1, 2015. Officers and directors of the Company are not eligible for the Early Release, and the Early Release shall apply only to securities outstanding as of May 7, 2015 (including pursuant to the exercise or conversion of securities that are outstanding as of May 7, 2015). The Company expects that the Early Release will apply to no more than approximately 535,000 shares of the Companys Common Stock.
Item 9.01 | Financial Statements and Exhibits |
(d) | Exhibits |
Exhibit Number |
Description | |
99.1 | Press release, dated May 12, 2015, issued by New Relic, Inc. |
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.
New Relic, Inc. | ||||||
Date: May 12, 2015 | By: | /s/ Mark Sachleben | ||||
Mark Sachleben | ||||||
Chief Financial Officer |
INDEX TO EXHIBITS
Exhibit Number |
Description | |
99.1 | Press release, dated May 12, 2015, issued by New Relic, Inc. |
Exhibit 99.1
New Relic Announces Fourth Quarter and Full Fiscal Year 2015 Results
Revenue increased 68% year-over-year to $33.4 million in the fourth quarter
Dollar-Based Net Expansion Rate of 130%
San Francisco May 12, 2015 Software analytics company New Relic, Inc. (NYSE: NEWR) today announced financial results for the fourth quarter and fiscal year ended March 31, 2015.
Our fourth quarter results capped off an incredible year of growth and innovation for New Relic. We successfully drove new business across organizations of all sizes especially in the enterprise, and added three entirely new products to our cloud-based New Relic Software Analytics Platform, said Lew Cirne, CEO and founder, New Relic. As we enter FY16, we are focused on continuing to empower companies of all sizes to deliver great software that drives their business through world-class customer experiences.
Fourth Quarter 2015 Financial Highlights:
| Revenue of $33.4 million, up 68% compared with the fourth quarter of fiscal 2014 and 15% from the third quarter of fiscal 2015. |
| GAAP loss from operations was $14.7 million for the fourth quarter of fiscal 2015, compared with GAAP loss from operations of $9.5 million for the fourth quarter of fiscal 2014. Non-GAAP loss from operations was $10.2 million for the fourth quarter of fiscal 2015, compared with non-GAAP loss from operations of $6.5 million for the fourth quarter of fiscal 2014. |
| GAAP net loss per share was $0.32 for the fourth quarter of fiscal 2015 based on 47.0 million weighted-average shares outstanding, compared with GAAP net loss per share of $0.62 for the fourth quarter of fiscal 2014 based on 15.7 million weighted-average shares outstanding. Non-GAAP net loss per share was $0.22 for the fourth quarter of fiscal 2015 based on 47.0 million non-GAAP weighted-average shares outstanding, compared with non-GAAP net loss per share of $0.18 for the fourth quarter of fiscal 2014 based on 37.1 million non-GAAP weighted-average shares outstanding. |
| Cash, cash equivalents and short-term investments were $200.8 million at the end of the fourth quarter of fiscal 2015, compared with $204.8 million at the end of the third quarter of fiscal 2015. |
Fiscal Year 2015 Financial Highlights:
| Revenue of $110.4 million, up 75% compared with fiscal year 2014. |
| GAAP loss from operations was $49.9 million for fiscal year 2015, compared with GAAP loss from operations of $39.4 million for fiscal year 2014. Non-GAAP loss from operations was $36.2 million for fiscal year 2015, compared with non-GAAP loss from operations of $28.0 million for fiscal year 2014. |
| GAAP net loss per share was $1.98 for fiscal year 2015 based on 25.3 million weighted-average shares outstanding, compared with GAAP net loss per share of $2.58 for fiscal year 2014 based on 15.6 million weighted-average shares outstanding. Non-GAAP net loss per share was $0.85 for fiscal year 2015 based on 42.7 million non-GAAP weighted-average shares outstanding, compared with non-GAAP net loss per share of $0.78 for fiscal year 2014 based on 37.0 million non-GAAP weighted-average shares outstanding. |
Customer Highlights:
| Paid Business Accounts as of March 31, 2015 of 11,910. |
| Dollar-Based Net Expansion Rate for the quarter ended March 31, 2015 of 130%. |
| New customers in the quarter included: Aramark, Bauer Digital, Carfax, CitySprint (UK), Eastern Bank, Energy Saving Trust, Jet.com, Ladbrokes Digital Australia, NGA Human Resources, NRK A/S, Panasonic Europe, Property Solutions International, REI, TrustPilot, STATS LLC, Webroot and Weight Watchers International. |
| Expanded customer relationships in the quarter included: Airbnb, Atlassian, Centers for Medicare and Medicaid Services, Delivery Hero Holding GmbH, Docker, Flight Centre, GE Capital, GrubHub, Kochava, National Geographic Society, TangoME, Sanoma Oyj, Trek Bicycle Corporation, Veracode, Vungle, Wellcentive, WeWork Companies and Wizz Air Hungary. |
Fourth Quarter & Recent Business Highlights:
| Expanded Insights offering with the addition of key new features: Data Apps and Browser Instrumentation. |
| Announced that Insights will extend its capabilities to provide real-time insights about mobile application data for customers. |
| Launched New Relic Non-Profit Program, which offers qualifying 501(c)(3) non-profit organizations up to five hosts of New Relic APM Pro for free, with significant discounts on additional APM hosts and other New Relic products. |
| Welcomed John Gray to the company as SVP of Business Development to lead partner strategy, building out the companys global ecosystem of alliances and channel partners. |
Outlook:
New Relic is initiating its outlook for its first quarter of fiscal 2016, as well as the full fiscal year 2016.
| First Quarter Fiscal 2016 Outlook: |
| Revenue between $34.5 million and $35.5 million, representing year-over-year growth of between 53% and 57%. |
| Non-GAAP loss from operations of between $11.0 million and $12.0 million. |
| Non-GAAP net loss per share of between $0.23 and $0.26. This assumes 47.3 million non-GAAP weighted average common shares outstanding. |
| Full Year Fiscal 2016 Outlook: |
| Revenue between $155.0 million and $159.0 million, representing year-over-year growth of between 40% and 44%. |
| Non-GAAP loss from operations of between $46.0 million and $50.0 million. |
| Non-GAAP net loss per share of between $0.95 and $1.03. This assumes 49.0 million non-GAAP weighted average common shares outstanding. |
Conference Call Details:
| What: New Relic financial results for the fourth quarter and full fiscal year 2015 and outlook for the first quarter of fiscal 2016 and the full year of fiscal 2016 |
| When: May 12, 2015 at 2:00 P.M. Pacific Time (5:00 P.M. Eastern Time) |
| Dial in: To access the call in the U.S., please dial (877) 201-0168, and for international callers, please dial (647) 788-4901. Callers may provide confirmation number 20799417 to access the call more quickly, and are encouraged to dial into the call 10 to 15 minutes prior to the start to prevent any delay in joining. |
| Webcast: http://ir.newrelic.com (live and replay) |
| Replay: Following the completion of the call through 11:59 PM Eastern Time on May 19, 2015, a telephone replay will be available by dialing (855) 859-2056 from the United States or (404) 537-3406 internationally with conference ID 20799417. |
About New Relic
New Relic is a software analytics company that makes sense of billions of data points about millions of applications in real time. New Relics comprehensive SaaS-based solution provides one powerful interface for web and native mobile applications and consolidates the performance monitoring data for any chosen technology in your environment. More than 500,000 users and 11,000 paid business accounts trust New Relic to tap into the billions of real-time metrics from inside their production software and provide answers to their important business questions. When your brand and customer experience depend on the performance of modern software, New Relic provides insight into your overall environment. Learn more at newrelic.com.
Forward-Looking Statements
This press release and the earnings call referencing this press release contain forward-looking statements, as that term is defined under the federal securities laws, including but not limited to statements regarding New Relics future financial performance, including its expected financial results for the first quarter of fiscal year 2016 and for the full fiscal year 2016, market trends and opportunity, customer adoption and momentum of New Relics products, competitive advantages, New Relics ability to execute and empower thousands of businesses in their move to the cloud. These forward-looking statements are based on New Relics current assumptions, expectations and beliefs and are subject to
substantial risks, uncertainties, assumptions and changes in circumstances that may cause New Relics actual results, performance or achievements to differ materially from those expressed or implied in any forward-looking statement.
The risks and uncertainties referred to above include, but are not limited to, New Relics ability to generate sufficient revenue to achieve and sustain profitability, particularly in light of its significant ongoing expenses; New Relics short operating history in an evolving industry; New Relics ability to manage its rapid recent growth; fluctuation of New Relics quarterly results; the dependence of New Relics business on its customers purchasing additional subscriptions and products from it and renewing their subscriptions; New Relics ability to develop enhancements to its products, increase adoption and usage of its products and introduce new products that achieve market acceptance; New Relics ability to persuade New Relics customers to expand their use of New Relics products to additional use cases; New Relics ability to determine optimal prices for its products; New Relics ability to expand its marketing and sales capabilities and increase sales of its solutions to large enterprises while mitigating the risks associated with serving such customers; privacy concerns, which could result in additional cost and liability to New Relic or inhibit sales; changes in privacy laws, regulations and standards; New Relics ability to effectively compete in the intensely competitive market for application performance monitoring solutions and respond effectively to rapidly changing technology, evolving industry standards and changing customer needs, requirements or preferences; New Relics dependence on lead generation strategies to drive sales and revenue; interruptions or performance problems associated with New Relics technology and infrastructure; defects or disruptions in New Relics products; the expense and complexity of New Relics ongoing and planned investments in data center hosting facilities; risks associated with international operations; New Relics ability to protect its intellectual property rights; and other Risk Factors set forth in New Relics most recent filings with the Securities and Exchange Commission (the SEC).
Further information on these and other factors that could affect New Relics financial results and the forward-looking statements in this press release is included in the filings we make with the SEC from time to time, particularly under the captions Risk Factors and Managements Discussion and Analysis of Financial Condition and Results of Operations, including that certain Quarterly Report on Form 10-Q for the quarter ended December 31, 2014. Copies of these documents may be obtained by visiting New Relics Investor Relations website at http://ir.newrelic.com or the SECs website at www.sec.gov.
New Relic assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
Non-GAAP Financial Measures
New Relic discloses the following non-GAAP financial measures in this release and the earnings call referencing this press release: non-GAAP loss from operations, non-GAAP net loss, non-GAAP gross profit, non-GAAP sales and marketing, non-GAAP research and development, non-GAAP general and administrative and non-GAAP weighted average shares outstanding. New Relic uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating its ongoing operational performance. New Relic believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. A reconciliation of the historical non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release. Investors are encouraged to review the reconciliation of these historical non-GAAP financial measures to their most directly comparable GAAP financial measures.
New Relic defines non-GAAP gross profit, non-GAAP sales and marketing, non-GAAP research and development, non-GAAP general and administrative, non-GAAP loss from operations and non-GAAP net loss as the respective GAAP balances, adjusted for: (1) stock-based compensation, (2) amortization of stock-based compensation capitalized in software development costs, (3) the amortization of purchased intangibles, (4) lawsuit litigation and (5) the transaction costs related to acquisition. Non-GAAP net loss per share is calculated as non-GAAP net loss divided by the non-GAAP weighted average shares outstanding that are adjusted to assume the conversion of outstanding preferred shares to common shares as of the beginning of the period.
With respect to New Relics outlook under Outlook above, New Relic has not reconciled its expectations as to non-GAAP loss from operations to GAAP loss from operations or non-GAAP net loss per share to GAAP net loss per share because certain items such as stock-based compensation and lawsuit litigation expenses are out of New Relics control or cannot be reasonably predicted. Accordingly, reconciliation is not available without unreasonable effort.
Operating Metrics
New Relics dollar-based net expansion rate compares its recurring subscription revenue from customers from one period to the next. It is increased when customers increase their use of New Relics products, use additional products, or upgrade to a higher subscription tier. New Relics dollar-based net expansion rate is reduced when customers decrease their use of New Relics products, use fewer products, or downgrade to a lower subscription tier.
New Relic is a registered trademark of New Relic, Inc.
All product and company names herein may be trademarks of their registered owners.
Investor Contact
Jonathan Parker
New Relic, Inc.
503-336-9280
IR@newrelic.com
Media Contact
Andrew Schmitt
New Relic, Inc.
415-869-7109
aschmitt@newrelic.com
Consolidated Statements of Operations
(In thousands, except per share data; unaudited)
Three Months Ended | Year Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Revenue |
$ | 33,388 | $ | 19,843 | $ | 110,391 | $ | 63,174 | ||||||||
Cost of revenue |
6,801 | 3,378 | 21,802 | 10,780 | ||||||||||||
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Gross profit |
26,587 | 16,465 | 88,589 | 52,394 | ||||||||||||
Operating expenses: |
||||||||||||||||
Research and development |
7,366 | 4,284 | 24,024 | 16,496 | ||||||||||||
Sales and marketing |
26,067 | 16,065 | 89,162 | 58,156 | ||||||||||||
General and administrative |
7,846 | 5,621 | 25,319 | 17,178 | ||||||||||||
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Total operating expenses |
41,279 | 25,970 | 138,505 | 91,830 | ||||||||||||
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Loss from operations |
(14,692 | ) | (9,505 | ) | (49,916 | ) | (39,436 | ) | ||||||||
Other income (expense): |
||||||||||||||||
Interest income |
117 | 3 | 176 | 16 | ||||||||||||
Interest expense |
(21 | ) | (15 | ) | (104 | ) | (64 | ) | ||||||||
Other expense, net |
(210 | ) | (238 | ) | (390 | ) | (741 | ) | ||||||||
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Loss before income taxes |
(14,806 | ) | (9,755 | ) | (50,234 | ) | (40,225 | ) | ||||||||
Expense (benefit) from income taxes |
19 | | (85 | ) | | |||||||||||
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Net loss |
$ | (14,825 | ) | $ | (9,755 | ) | $ | (50,149 | ) | $ | (40,225 | ) | ||||
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Net loss per share attributable to common stockholders, basic and diluted |
$ | (0.32 | ) | $ | (0.62 | ) | $ | (1.98 | ) | $ | (2.58 | ) | ||||
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Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted |
46,984 | 15,702 | 25,290 | 15,596 | ||||||||||||
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Consolidated Balance Sheets
(In thousands, except par value; unaudited)
March 31, | ||||||||
2015 | 2014 | |||||||
Assets |
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Current assets: |
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Cash and cash equivalents |
$ | 105,257 | $ | 19,453 | ||||
Short-term investments |
95,503 | | ||||||
Accounts receivable, net of allowance for doubtful accounts of $282 and $84, respectively |
13,813 | 5,532 | ||||||
Prepaid expenses and other current assets |
4,299 | 2,491 | ||||||
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Total current assets |
218,872 | 27,476 | ||||||
Property and equipment, net |
35,397 | 20,183 | ||||||
Restricted cash |
4,623 | 5,601 | ||||||
Goodwill and intangible assets, net |
4,353 | | ||||||
Other assets |
1,466 | 1,948 | ||||||
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Total assets |
$ | 264,711 | $ | 55,208 | ||||
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Liabilities, convertible preferred stock and stockholders equity (deficit) |
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Current liabilities: |
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Accounts payable |
$ | 4,969 | $ | 4,109 | ||||
Accrued compensation and benefits |
6,288 | 2,822 | ||||||
Other current liabilities |
3,623 | 2,160 | ||||||
Deferred revenue |
29,185 | 10,359 | ||||||
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Total current liabilities |
44,065 | 19,450 | ||||||
Deferred rent, non-current |
4,638 | 3,606 | ||||||
Other liabilities, non-current |
1,138 | 900 | ||||||
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Total liabilities |
49,841 | 23,956 | ||||||
Convertible preferred stock: |
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Convertible preferred stock, $0.001 par value |
| 95,917 | ||||||
Stockholders equity (deficit): |
||||||||
Common stock, $0.001 par value |
47 | 16 | ||||||
Treasury stock - at cost (260 shares) |
(263 | ) | (263 | ) | ||||
Additional paid-in capital |
346,671 | 17,033 | ||||||
Accumulated other comprehensive income |
15 | | ||||||
Accumulated deficit |
(131,600 | ) | (81,451 | ) | ||||
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Total stockholders equity (deficit) |
214,870 | (64,665 | ) | |||||
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Total liabilities, convertible preferred stock and stockholders equity (deficit) |
$ | 264,711 | $ | 55,208 | ||||
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Consolidated Statements of Cash Flows
(In thousands; unaudited)
Year Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Cash flows from operating activities: |
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Net loss: |
$ | (50,149 | ) | $ | (40,225 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: |
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Depreciation and amortization |
9,044 | 4,536 | ||||||
Stock-based compensation expense |
11,666 | 6,220 | ||||||
Deferred tax |
(422 | ) | | |||||
Change in fair value of preferred stock warrant liability |
82 | 718 | ||||||
Other |
376 | 225 | ||||||
Changes in operating assets and liabilities, net of acquisition of business: |
||||||||
Accounts receivable |
(8,565 | ) | (3,036 | ) | ||||
Prepaid expenses and other assets |
(1,449 | ) | (754 | ) | ||||
Accounts payable |
1,012 | 2,284 | ||||||
Accrued compensation and benefits and other liabilities |
4,790 | 2,069 | ||||||
Deferred revenue |
18,948 | 5,388 | ||||||
Deferred rent |
1,046 | 1,862 | ||||||
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Net cash used in operating activities: |
(13,621 | ) | (20,713 | ) | ||||
Cash flows from investing activities: |
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Purchases of property and equipment |
(12,628 | ) | (9,758 | ) | ||||
Down payment for property and equipment |
| (1,269 | ) | |||||
Acquisition of Few Ducks, S.L., net of cash acquired |
(2,262 | ) | | |||||
Decrease (increase) in restricted cash |
978 | (1,001 | ) | |||||
Purchases of short-term investments |
(114,468 | ) | | |||||
Proceeds from sale and maturity of short-term investments |
18,717 | | ||||||
Capitalized software development costs |
(9,017 | ) | (5,199 | ) | ||||
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Net cash used in investing activities |
(118,680 | ) | (17,227 | ) | ||||
Cash flows from financing activities: |
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Proceeds from issuances of preferred stock, net of issuance costs |
97,243 | | ||||||
Proceeds from initial public offering, net of issuance costs |
119,924 | | ||||||
Principal payments on debt |
(271 | ) | | |||||
Proceeds from issuance of common stock |
1,209 | 294 | ||||||
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Net cash provided by financing activities |
218,105 | 294 | ||||||
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Net increase (decrease) in cash and cash equivalents |
85,804 | (37,646 | ) | |||||
Cash and cash equivalents, beginning of period |
19,453 | 57,099 | ||||||
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Cash and cash equivalents, end of period |
$ | 105,257 | $ | 19,453 | ||||
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Reconciliation from GAAP to Non-GAAP Results
(In thousands, except per share data; unaudited)
Three Months Ended | Year Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Reconciliation of gross profit and gross margin: |
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GAAP gross profit |
$ | 26,587 | $ | 16,465 | $ | 88,589 | $ | 52,394 | ||||||||
Plus: Stock-based compensation |
232 | 58 | 591 | 159 | ||||||||||||
Plus: Amortization of purchased intangibles |
202 | | 400 | | ||||||||||||
Plus: Amortization of stock-based compensation capitalized in software development costs |
66 | 22 | 179 | 54 | ||||||||||||
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Non-GAAP gross profit |
$ | 27,087 | $ | 16,545 | $ | 89,759 | $ | 52,607 | ||||||||
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Reconciliation of operating expenses: |
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GAAP research and development |
$ | 7,366 | $ | 4,284 | $ | 24,024 | $ | 16,496 | ||||||||
Less: Stock-based compensation |
(877 | ) | (231 | ) | (2,055 | ) | (1,425 | ) | ||||||||
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Non-GAAP research and development |
$ | 6,489 | $ | 4,053 | $ | 21,969 | $ | 15,071 | ||||||||
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GAAP sales and marketing |
$ | 26,067 | $ | 16,065 | $ | 89,162 | $ | 58,156 | ||||||||
Less: Stock-based compensation |
(1,730 | ) | (374 | ) | (5,108 | ) | (1,373 | ) | ||||||||
Less: Amortization of purchased intangibles |
(13 | ) | | (25 | ) | | ||||||||||
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Non-GAAP sales and marketing |
$ | 24,324 | $ | 15,691 | $ | 84,029 | $ | 56,783 | ||||||||
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GAAP general and administrative |
$ | 7,846 | $ | 5,621 | $ | 25,319 | $ | 17,178 | ||||||||
Less: Stock-based compensation |
(1,235 | ) | (833 | ) | (3,912 | ) | (3,263 | ) | ||||||||
Less: Lawsuit litigation |
(105 | ) | (1,449 | ) | (1,322 | ) | (5,135 | ) | ||||||||
Less: Amortization of purchased intangibles |
(38 | ) | | (75 | ) | | ||||||||||
Less: Transaction costs related to acquisition |
| | (71 | ) | | |||||||||||
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Non-GAAP general and administrative |
$ | 6,468 | $ | 3,339 | $ | 19,939 | $ | 8,780 | ||||||||
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Reconciliation of operating loss and operating margin: |
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GAAP operating loss |
$ | (14,692 | ) | $ | (9,505 | ) | $ | (49,916 | ) | $ | (39,436 | ) | ||||
Plus: Stock-based compensation |
4,074 | 1,496 | 11,666 | 6,220 | ||||||||||||
Plus: Lawsuit litigation |
105 | 1,449 | 1,322 | 5,135 | ||||||||||||
Plus: Amortization of purchased intangibles |
253 | | 500 | | ||||||||||||
Plus: Transaction costs related to acquisition |
| | 71 | | ||||||||||||
Plus: Amortization of stock-based compensation capitalized in software development costs |
66 | 22 | 179 | 54 | ||||||||||||
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Non-GAAP operating loss |
$ | (10,194 | ) | $ | (6,538 | ) | $ | (36,178 | ) | $ | (28,027 | ) | ||||
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Reconciliation of net loss attributable to common stockholders: |
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GAAP net loss attributable to common stockholders |
$ | (14,825 | ) | $ | (9,755 | ) | $ | (50,149 | ) | $ | (40,225 | ) | ||||
Plus: Stock-based compensation |
4,074 | 1,496 | 11,666 | 6,220 | ||||||||||||
Plus: Lawsuit litigation |
105 | 1,449 | 1,322 | 5,135 | ||||||||||||
Plus: Amortization of purchased intangibles |
253 | | 500 | | ||||||||||||
Plus: Transaction costs related to acquisition |
| | 71 | | ||||||||||||
Plus: Amortization of stock-based compensation capitalized in software development costs |
66 | 22 | 179 | 54 | ||||||||||||
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Non-GAAP net loss attributable to common stockholders |
$ | (10,327 | ) | $ | (6,788 | ) | $ | (36,411 | ) | $ | (28,816 | ) | ||||
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Reconciliation of net loss per share attributable to common stockholders, basic and diluted: |
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GAAP net loss per share attributable to common stockholders, basic and diluted |
$ | (0.32 | ) | $ | (0.62 | ) | $ | (1.98 | ) | $ | (2.58 | ) | ||||
Non-GAAP adjustments to net loss |
0.10 | 0.19 | 0.54 | 0.73 | ||||||||||||
Non-GAAP adjustment to weighted-average shares used to compute net loss per share |
| 0.25 | 0.59 | 1.07 | ||||||||||||
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Non-GAAP net loss per share attributable to common stockholders, basic and diluted |
$ | (0.22 | ) | $ | (0.18 | ) | $ | (0.85 | ) | $ | (0.78 | ) | ||||
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Reconciliation of weighted-average shares used to compute net loss per share attributable to common stockholders: |
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GAAP weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted |
46,984 | 15,702 | 25,290 | 15,596 | ||||||||||||
Conversion of preferred stock |
| 21,357 | 17,386 | 21,357 | ||||||||||||
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Non-GAAP weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted |
46,984 | 37,059 | 42,676 | 36,953 | ||||||||||||
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