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
February 4, 2016
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 February 4, 2016, New Relic, Inc. (the Company) issued a press release announcing its financial results for the third fiscal quarter ended December 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 9.01 Financial Statements and Exhibits
(d) | Exhibits |
Exhibit Number |
Description | |
99.1 | Press release, dated February 4, 2016, 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: February 4, 2016 | By: | /s/ Mark Sachleben | ||||
Mark Sachleben Chief Financial Officer |
INDEX TO EXHIBITS
Exhibit Number |
Description | |
99.1 | Press release, dated February 4, 2016, issued by New Relic, Inc. |
Exhibit 99.1
New Relic Announces Third Quarter of Fiscal Year 2016 Results
Revenue increased 64% year-over-year to $47.7 million in the third quarter
First quarter of positive operating cash flow
San Francisco February 4, 2016 Software analytics company New Relic, Inc. (NYSE: NEWR) today announced financial results for the third fiscal quarter ended December 31, 2015.
We are continuing to drive momentum for the New Relic Software Analytics Cloud as companies of all sizes from start-ups to Fortune 10 enterprises entrust their digital future to New Relic, said Lew Cirne, CEO and founder, New Relic. Whether youre a developer, an IT operations professional or an executive, we see New Relic rapidly becoming the first, best place to look when you need to understand whats happening in your digital business.
Third Quarter Fiscal 2016 Financial Highlights:
| Revenue of $47.7 million, up 64% compared with the third quarter of fiscal 2015 and 11% from the second quarter of fiscal 2016. |
| GAAP loss from operations was $18.2 million for the third quarter of fiscal 2016, compared with $15.6 million for the third quarter of fiscal 2015. Non-GAAP loss from operations was $10.7 million for the third quarter of fiscal 2016, compared with $11.8 million for the third quarter of fiscal 2015. |
| GAAP net loss per share was $0.37 for the third quarter of fiscal 2016 based on 49.0 million weighted-average shares outstanding, compared with $0.70 for the third quarter of fiscal 2015 based on 22.8 million weighted-average shares outstanding. Non-GAAP net loss per share was $0.22 for the third quarter of fiscal 2016 based on 49.0 million non-GAAP weighted-average shares outstanding, compared with $0.28 for the third quarter of fiscal 2015 based on 42.3 million non-GAAP weighted-average shares outstanding. |
| Cash, cash equivalents and short-term investments were $191.0 million at the end of the third quarter of fiscal 2016, compared with $189.0 million at the end of the second quarter of fiscal 2016. |
Customer Highlights:
| As of December 31, 2015, total Paid Business Accounts were 13,126. |
| Dollar-Based Net Expansion Rate for the quarter ended December 31, 2015 was 129%. |
| New customers in the quarter included: Cirque du Soleil, FlightNetwork.com, France Télévisions SA, Hachette Book Group, Hy-Vee, Inc., Isolation Network, Inc., Lighthouse eDiscovery, Major League Soccer, NYC-DOT, New Zealand Media and Entertainment, Office Depot International in Europe and Royal Opera House. |
| Expanded customer relationships in the quarter included: Adobe Systems Incorporated, American Eagle Outfitters, Inc., Citrix, Despegar.com, Eastern Bank Corporation, Fox Sports, Globosat, Hogg Robinson plc, iHeartMedia, Jive, Kent State University, Multiplus, NBCUniversal, Ocado, REI, Sensis, VenueNext, Yellow Pages Limited and Zenefits. |
Third Quarter & Recent Business Highlights:
| Acquired Opsmatic, Inc. [https://ir.newrelic.com/press-releases/Press-Release-Details/2015/New-Relic-Acquires-Real-time-Infrastructure-Monitoring-Company-Opsmatic], a San Francisco-based startup focused on live-state infrastructure monitoring for modern DevOps teams. |
| Announced the appointment of Robson Grieve [https://ir.newrelic.com/press-releases/Press-Release-Details/2015/Robson-Grieve-Joins-New-Relic-as-Chief-Marketing-Officer] as Chief Marketing Officer. |
| Expanded the New Relic Software Analytics Cloud [https://ir.newrelic.com/press-releases/Press-Release-Details/2015/New-Relic-Embeds-Analytics-Across-Product-Line-for-the-Modern-Enterprise] at FutureStack15 to deliver a single platform with real-time analytics embedded into every product. |
| Ranked as the fastest growing public software company [https://ir.newrelic.com/press-releases/Press-Release-Details/2015/New-Relic-Ranked-as-One-of-the-Fastest-Growing-Companies-in-North-America-on-Deloittes-2015-Technology-Fast-500] with a market capitalization over $100M in Deloittes Technology Fast 500TM. |
| Launched partnership with Carahsoft Technology Corp. [https://ir.newrelic.com/press-releases/Press-Release-Details/2015/New-Relic-Launches-Partnership-With-Carahsoft-Technology-Corp], to help expand the New Relic Software Analytics Cloud in the public sector. |
Outlook:
New Relic is initiating its outlook for its fourth quarter of fiscal 2016, as well as updating its outlook for the full fiscal year 2016.
| Fourth Quarter Fiscal 2016 Outlook: |
| Revenue between $49.8 million and $50.8 million, representing year-over-year growth of between 49% and 52%. |
| Non-GAAP loss from operations of between $11.5 million and $12.5 million. |
| Non-GAAP net loss per share of between $0.23 and $0.25. This assumes 49.7 million non-GAAP weighted average common shares outstanding. |
| Full Year Fiscal 2016 Outlook: |
| Revenue between $178.6 million and $179.6 million, representing year-over-year growth of between 62% and 63%. |
| Non-GAAP loss from operations of between $40.8 million and $41.8 million. |
| Non-GAAP net loss per share of between $0.83 and $0.85. This assumes 48.9 million non-GAAP weighted average common shares outstanding. |
Conference Call Details:
| What: New Relic financial results for the third quarter of fiscal year 2016 and outlook for the fourth quarter of fiscal 2016 and the full year of fiscal 2016. |
| When: February 4, 2016 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 19381228 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 February 12, 2015, a telephone replay will be available by dialing (855) 859-2056 from the United States or (404) 537-3406 internationally with conference ID 19381228. |
About New Relic
New Relic is a software analytics company that delivers real-time insights to more than 500,000 users and 13,000 paid business accounts. As a multi-tenant SaaS platform, the New Relic Software Analytics Cloud helps companies securely monitor their production software in virtually any environment, without having to build or maintain dedicated infrastructure. New Relic helps companies improve application performance, create delightful customer experiences, and realize business success. 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 outlook on financial results for the fourth 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, potential growth, including growth in the public sector, quantity and range of data types collected by New Relics customers, New Relics value proposition to its customers, the benefits of collaborative efforts and acquisitions, and New Relics ability to execute on its vision. 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 significant recent growth; fluctuation of New Relics quarterly results; the development of the overall market for SaaS business software; 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 the Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2015. 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 gross margin, non-GAAP operating margin, non-GAAP sales and marketing, non-GAAP research and development, non-GAAP general and administrative and non-GAAP weighted average shares used to compute net loss per share attributable to common stockholders. 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 operating loss and non-GAAP net loss as the respective GAAP balances, adjusted for: (1) stock-based compensation expense, (2) amortization of stock-based compensation capitalized in software development costs, (3) the amortization of purchased intangibles, (4) lawsuit litigation expense, (5) the transaction costs related to acquisition and (6) employer payroll tax expense on equity incentive plans, as applicable. New Relic excludes employer payroll tax expense on equity incentive plans as these expenses are tied to the exercise or vesting of underlying equity awards and the price of New Relics common stock at the time of vesting or exercise. As a result, these taxes may vary in any particular period independent of the financial and operating performance of New Relics business. Non-GAAP net loss per share is calculated as non-GAAP net loss divided by the non-GAAP weighted average shares used to compute net loss per share attributable to common stockholders 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, lawsuit litigation expenses and employer payroll taxes on equity incentive plans 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
Condensed Consolidated Statements of Operations
(In thousands, except per share data; unaudited)
Three Months Ended December 31, |
Nine Months Ended December 31, |
|||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Revenue |
$ | 47,744 | $ | 29,029 | $ | 128,817 | $ | 77,003 | ||||||||
Cost of revenue |
9,744 | 5,940 | 26,562 | 15,001 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit |
38,000 | 23,089 | 102,255 | 62,002 | ||||||||||||
Operating expenses: |
||||||||||||||||
Research and development |
12,015 | 6,410 | 31,385 | 16,659 | ||||||||||||
Sales and marketing |
35,153 | 25,460 | 93,201 | 63,094 | ||||||||||||
General and administrative |
9,070 | 6,864 | 26,014 | 17,464 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating expenses |
56,238 | 38,734 | 150,600 | 97,217 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Loss from operations |
(18,238 | ) | (15,645 | ) | (48,345 | ) | (35,215 | ) | ||||||||
Other income (expense): |
||||||||||||||||
Interest income |
158 | 47 | 448 | 65 | ||||||||||||
Interest expense |
(20 | ) | (54 | ) | (47 | ) | (83 | ) | ||||||||
Other expense, net |
(163 | ) | (381 | ) | (196 | ) | (195 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Loss before income taxes |
(18,263 | ) | (16,033 | ) | (48,140 | ) | (35,428 | ) | ||||||||
Income tax provision (benefit) |
92 | (104 | ) | 153 | (104 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net loss |
$ | (18,355 | ) | $ | (15,929 | ) | $ | (48,293 | ) | $ | (35,324 | ) | ||||
|
|
|
|
|
|
|
|
|||||||||
Net loss per share attributable to common stockholders, basic and diluted |
$ | (0.37 | ) | $ | (0.70 | ) | $ | (1.01 | ) | $ | (1.94 | ) | ||||
|
|
|
|
|
|
|
|
|||||||||
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted |
48,953 | 22,847 | 48,001 | 18,182 | ||||||||||||
|
|
|
|
|
|
|
|
Condensed Consolidated Balance Sheets
(In thousands, except par value; unaudited)
December 31, | March 31, | |||||||
2015 | 2015 | |||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 71,901 | $ | 105,257 | ||||
Short-term investments |
119,105 | 95,503 | ||||||
Accounts receivable, net of allowance for doubtful accounts of $478 and $282, respectively |
23,408 | 13,813 | ||||||
Prepaid expenses and other current assets |
5,676 | 4,299 | ||||||
|
|
|
|
|||||
Total current assets |
220,090 | 218,872 | ||||||
Property and equipment, net |
40,398 | 35,397 | ||||||
Restricted cash |
8,023 | 4,623 | ||||||
Goodwill |
11,828 | 2,053 | ||||||
Intangible assets, net |
3,919 | 2,300 | ||||||
Other assets, non-current |
1,583 | 1,466 | ||||||
|
|
|
|
|||||
Total assets |
$ | 285,841 | $ | 264,711 | ||||
|
|
|
|
|||||
Liabilities and stockholders equity |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 6,630 | $ | 4,969 | ||||
Accrued compensation and benefits |
8,893 | 6,288 | ||||||
Other current liabilities |
4,516 | 3,623 | ||||||
Deferred revenue |
55,370 | 29,185 | ||||||
|
|
|
|
|||||
Total current liabilities |
75,409 | 44,065 | ||||||
Deferred rent, non-current |
4,770 | 4,638 | ||||||
Deferred revenue, non-current |
2,689 | 124 | ||||||
Other liabilities, non-current |
1,616 | 1,014 | ||||||
|
|
|
|
|||||
Total liabilities |
84,484 | 49,841 | ||||||
Stockholders equity: |
||||||||
Common stock, $0.001 par value |
50 | 47 | ||||||
Treasury stockat cost (260 shares) |
(263 | ) | (263 | ) | ||||
Additional paid-in capital |
381,634 | 346,671 | ||||||
Accumulated other comprehensive (loss) income |
(171 | ) | 15 | |||||
Accumulated deficit |
(179,893 | ) | (131,600 | ) | ||||
|
|
|
|
|||||
Total stockholders equity |
201,357 | 214,870 | ||||||
|
|
|
|
|||||
Total liabilities and stockholders equity |
$ | 285,841 | $ | 264,711 | ||||
|
|
|
|
Condensed Consolidated Statements of Cash Flows
(In thousands; unaudited)
Nine Months Ended December 31, |
||||||||
2015 | 2014 | |||||||
Cash flows from operating activities: |
||||||||
Net loss: |
$ | (48,293 | ) | $ | (35,324 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
Depreciation and amortization |
11,058 | 6,089 | ||||||
Stock-based compensation expense |
16,603 | 7,592 | ||||||
Other |
817 | 208 | ||||||
Changes in operating assets and liabilities, net of acquisition of business: |
||||||||
Accounts receivable |
(10,010 | ) | (6,754 | ) | ||||
Prepaid expenses and other assets |
(1,265 | ) | (1,443 | ) | ||||
Accounts payable |
859 | (777 | ) | |||||
Accrued compensation and benefits and other liabilities |
4,068 | 2,936 | ||||||
Deferred rent |
199 | 771 | ||||||
Deferred revenue |
28,750 | 13,273 | ||||||
|
|
|
|
|||||
Net cash provided by (used in) operating activities |
2,786 | (13,429 | ) | |||||
Cash flows from investing activities: |
||||||||
Purchases of property and equipment |
(8,119 | ) | (10,628 | ) | ||||
Acquisition of business, net of cash acquired |
(5,498 | ) | (2,262 | ) | ||||
Increase in restricted cash |
(3,400 | ) | (25 | ) | ||||
Purchases of short-term investments |
(80,046 | ) | (37,189 | ) | ||||
Proceeds from sale and maturity of short-term investments |
55,692 | | ||||||
Capitalized software development costs |
(5,316 | ) | (6,667 | ) | ||||
|
|
|
|
|||||
Net cash used in investing activities |
(46,687 | ) | (56,771 | ) | ||||
Cash flows from financing activities: |
||||||||
Proceeds from issuances of preferred stock, net of issuance costs |
| 97,243 | ||||||
Proceeds from initial public offering, net of issuance costs |
| 120,601 | ||||||
Principal payments on debt |
| (271 | ) | |||||
Proceeds from issuance of common stock |
10,545 | 914 | ||||||
|
|
|
|
|||||
Net cash provided by financing activities |
10,545 | 218,487 | ||||||
|
|
|
|
|||||
Net increase (decrease) in cash and cash equivalents |
(33,356 | ) | 148,287 | |||||
Cash and cash equivalents, beginning of period |
105,257 | 19,453 | ||||||
|
|
|
|
|||||
Cash and cash equivalents, end of period |
$ | 71,901 | $ | 167,740 | ||||
|
|
|
|
Reconciliation from GAAP to Non-GAAP Results
(In thousands, except per share data; unaudited)
Three Months Ended December 31, |
Nine Months Ended December 31, |
|||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Reconciliation of gross profit and gross margin: |
||||||||||||||||
GAAP gross profit |
$ | 38,000 | $ | 23,089 | $ | 102,255 | $ | 62,002 | ||||||||
Plus: Stock-based compensation |
333 | 166 | 893 | 359 | ||||||||||||
Plus: Amortization of purchased intangibles |
339 | 198 | 739 | 198 | ||||||||||||
Plus: Amortization of stock-based compensation capitalized in software development costs |
167 | 51 | 388 | 113 | ||||||||||||
Plus: Employer payroll tax on employee equity incentive plans |
9 | | 12 | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP gross profit |
$ | 38,848 | $ | 23,504 | $ | 104,287 | $ | 62,672 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
GAAP gross margin |
80 | % | 80 | % | 79 | % | 81 | % | ||||||||
Non-GAAP adjustments |
1 | % | 1 | % | 2 | % | 1 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP gross margin |
81 | % | 81 | % | 81 | % | 82 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Reconciliation of operating expenses: |
||||||||||||||||
GAAP research and development |
$ | 12,015 | $ | 6,410 | $ | 31,385 | $ | 16,659 | ||||||||
Less: Stock-based compensation |
(1,684 | ) | (721 | ) | (4,223 | ) | (1,178 | ) | ||||||||
Less: Employer payroll tax on employee equity incentive plans |
(127 | ) | | (195 | ) | | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP research and development |
$ | 10,204 | $ | 5,689 | $ | 26,967 | $ | 15,481 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
GAAP sales and marketing |
$ | 35,153 | $ | 25,460 | $ | 93,201 | $ | 63,094 | ||||||||
Less: Stock-based compensation |
(2,588 | ) | (1,474 | ) | (6,634 | ) | (3,378 | ) | ||||||||
Less: Amortization of purchased intangibles |
(10 | ) | (12 | ) | (35 | ) | (12 | ) | ||||||||
Less: Employer payroll tax on employee equity incentive plans |
(85 | ) | | (416 | ) | | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP sales and marketing |
$ | 32,470 | $ | 23,974 | $ | 86,116 | $ | 59,704 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
GAAP general and administrative |
$ | 9,070 | $ | 6,864 | $ | 26,014 | $ | 17,464 | ||||||||
Less: Stock-based compensation |
(1,751 | ) | (1,065 | ) | (4,853 | ) | (2,677 | ) | ||||||||
Less: Lawsuit litigation |
(16 | ) | (94 | ) | (43 | ) | (1,217 | ) | ||||||||
Less: Amortization of purchased intangibles |
(32 | ) | (37 | ) | (106 | ) | (37 | ) | ||||||||
Less: Transaction costs related to acquisition |
(281 | ) | (71 | ) | (385 | ) | (71 | ) | ||||||||
Less: Employer payroll tax on employee equity incentive plans |
(132 | ) | | (210 | ) | | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP general and administrative |
$ | 6,858 | $ | 5,597 | $ | 20,417 | $ | 13,462 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Reconciliation of loss from operations and operating margin: |
||||||||||||||||
GAAP loss from operations |
$ | (18,238 | ) | $ | (15,645 | ) | $ | (48,345 | ) | $ | (35,215 | ) | ||||
Plus: Stock-based compensation |
6,356 | 3,426 | 16,603 | 7,592 | ||||||||||||
Plus: Lawsuit litigation |
16 | 94 | 43 | 1,217 | ||||||||||||
Plus: Amortization of purchased intangibles |
381 | 247 | 880 | 247 | ||||||||||||
Plus: Transaction costs related to acquisition |
281 | 71 | 385 | 71 | ||||||||||||
Plus: Amortization of stock-based compensation capitalized in software development costs |
167 | 51 | 388 | 113 | ||||||||||||
Plus: Employer payroll tax on employee equity incentive plans |
353 | | 833 | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP loss from operations |
$ | (10,684 | ) | $ | (11,756 | ) | $ | (29,213 | ) | $ | (25,975 | ) | ||||
|
|
|
|
|
|
|
|
|||||||||
GAAP operating margin |
(38 | %) | (54 | %) | (38 | %) | (46 | %) | ||||||||
Non-GAAP adjustments |
16 | % | 14 | % | 15 | % | 12 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP operating margin |
(22 | %) | (40 | %) | (23 | %) | (34 | %) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Reconciliation of net loss: |
||||||||||||||||
GAAP net loss |
$ | (18,355 | ) | $ | (15,929 | ) | $ | (48,293 | ) | $ | (35,324 | ) | ||||
Plus: Stock-based compensation |
6,356 | 3,426 | 16,603 | 7,592 | ||||||||||||
Plus: Lawsuit litigation |
16 | 94 | 43 | 1,217 | ||||||||||||
Plus: Amortization of purchased intangibles |
381 | 247 | 880 | 247 | ||||||||||||
Plus: Transaction costs related to acquisition |
281 | 71 | 385 | 71 | ||||||||||||
Plus: Amortization of stock-based compensation capitalized in software development costs |
167 | 51 | 388 | 113 | ||||||||||||
Plus: Employer payroll tax on employee equity incentive plans |
353 | | 833 | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP net loss |
$ | (10,801 | ) | $ | (12,040 | ) | $ | (29,161 | ) | $ | (26,084 | ) | ||||
|
|
|
|
|
|
|
|
|||||||||
Reconciliation of net loss per share attributable to common stockholders, basic and diluted: |
||||||||||||||||
GAAP net loss per share attributable to common stockholders, basic and diluted |
$ | (0.37 | ) | $ | (0.70 | ) | $ | (1.01 | ) | $ | (1.94 | ) | ||||
Non-GAAP adjustments to net loss |
0.15 | 0.17 | 0.40 | 0.51 | ||||||||||||
Non-GAAP adjustment to weighted-average shares used to compute net loss per share |
| 0.25 | | 0.80 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP net loss per share attributable to common stockholders, basic and diluted |
(0.22 | ) | (0.28 | ) | (0.61 | ) | (0.63 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Reconciliation of weighted-average shares used to compute net loss per share attributable to common stockholders: |
||||||||||||||||
GAAP weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted |
48,953 | 22,847 | 48,001 | 18,182 | ||||||||||||
Conversion of preferred stock |
| 19,476 | | 23,076 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted |
48,953 | 42,323 | 48,001 | 41,258 | ||||||||||||
|
|
|
|
|
|
|
|