Delaware | 001-36766 | 26-2017431 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
¨ | 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)) |
Emerging growth company | ☐ |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock | NEWR | New York Stock Exchange |
(d) | Exhibits |
Exhibit Number | Description | |
Press release, dated May 14, 2019, issued by New Relic, Inc. |
New Relic, Inc. | ||||||
Date: May 14, 2019 | By: | /s/ Mark Sachleben | ||||
Mark Sachleben | ||||||
Chief Financial Officer |
• | Revenue of $132.1 million, compared to $98.4 million for the fourth quarter of fiscal 2018. |
• | GAAP loss from operations was $(15.4) million, compared to $(7.5) million for the fourth quarter of fiscal 2018. |
• | Non-GAAP income from operations was $3.8 million, compared to $4.8 million for the fourth quarter of fiscal 2018. |
• | GAAP net loss attributable to New Relic per share, basic and diluted, was $(0.30), compared to $(0.13) per basic share for the fourth quarter of fiscal 2018. |
• | Non-GAAP net income attributable to New Relic per diluted share was $0.13, compared to $0.09 per diluted share for the fourth quarter of fiscal 2018. |
• | Cash, cash equivalents and short-term investments were $744.7 million at the end of the fourth quarter of fiscal 2019, compared with $722.3 million at the end of the third quarter of fiscal 2019. |
• | Revenue of $479.2 million, up 35% compared with fiscal 2018. |
• | GAAP loss from operations was $(33.1) million, compared with $(46.8) million for fiscal 2018. |
• | Non-GAAP income (loss) from operations was $30.0 million, compared with $(1.5) million for fiscal 2018. |
• | GAAP net loss attributable to New Relic per share, basic and diluted was $(0.72), compared with $(0.83) per basic share for fiscal 2018. |
• | Non-GAAP net income attributable to New Relic per diluted share was $0.66, compared with net income per diluted share of breakeven for fiscal 2018. |
• | $100K+ Paid Business Accounts as of March 31, 2019 of 858, compared to 703 as of March 31, 2018. |
• | 61% of ARR from Enterprise Paid Business Accounts as of March 31, 2019, compared to 54% as of March 31, 2018. |
• | Dollar-Based Net Expansion Rate for the fourth quarter of fiscal 2019 of 131%, compared to 141% as of the fourth quarter of fiscal 2018. |
• | Recognized as a Leader in Gartner’s Magic Quadrant for Application Performance Monitoring for the seventh consecutive time. [https://newrelic.com/press-release/20190318] |
• | Hosted first-ever FutureStack Tokyo event. [https://ir.newrelic.com/press-releases/Press-Release-Details/2019/New-Relic-Kicks-Off-First-Ever-FutureStack-Tokyo-Event-Helping-Customers-and-Partners-Accelerate-to-the-Future/default.aspx] |
• | Advanced AIOps strategy with acquisition of SignifAI, Inc. [https://newrelic.com/press-release/20190206-2] |
• | Named one of the 2019 Best Workplaces in Technology by Great Place to Work® and FORTUNE [https://newrelic.com/press-release/20190117] |
• | First Quarter Fiscal 2020 Outlook: |
• | Revenue between $138.0 million and $140.0 million, representing year-over-year growth of between 28% and 29%, respectively. |
• | Non-GAAP income from operations of between $0.5 million and $1.5 million. |
• | Non-GAAP net income attributable to New Relic per diluted share of between $0.07 and $0.08. |
• | Full Year Fiscal 2020 Outlook: |
• | Revenue between $600.0 million and $607.0 million, representing year-over-year growth of |
• | Non-GAAP income from operations of between $20.0 million and $25.0 million. |
• | Non-GAAP net income attributable to New Relic per diluted share of between $0.54 and $0.62. |
• | What: New Relic financial results for the fourth quarter and full fiscal 2019 and outlook for the first quarter and the full year of fiscal 2020 |
• | When: May 14, 2019 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 (833) 241-7256, and for international callers, please dial (647) 689-4220. Callers may provide confirmation number 7775818 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 21, 2019, a telephone replay will be available by dialing (800) 585-8367 from the United States or (416) 621-4642 internationally with conference ID 7775818. |
• | . |
Three Months Ended March 31, | Year Ended March 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenue | $ | 132,097 | $ | 98,448 | $ | 479,225 | $ | 355,058 | |||||||
Cost of revenue | 21,696 | 16,383 | 77,399 | 62,725 | |||||||||||
Gross profit | 110,401 | 82,065 | 401,826 | 292,333 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 32,112 | 19,646 | 104,859 | 74,332 | |||||||||||
Sales and marketing | 71,975 | 55,006 | 257,066 | 207,021 | |||||||||||
General and administrative | 21,714 | 14,945 | 73,007 | 57,788 | |||||||||||
Total operating expenses | 125,801 | 89,597 | 434,932 | 339,141 | |||||||||||
Loss from operations | (15,400 | ) | (7,532 | ) | (33,106 | ) | (46,808 | ) | |||||||
Other income (expense): | |||||||||||||||
Interest income | 4,077 | 687 | 13,103 | 2,190 | |||||||||||
Interest expense | (5,747 | ) | (22 | ) | (19,679 | ) | (86 | ) | |||||||
Other income (expense), net | (92 | ) | 226 | (1,377 | ) | 343 | |||||||||
Loss before income taxes | (17,162 | ) | (6,641 | ) | (41,059 | ) | (44,361 | ) | |||||||
Income tax provision | 257 | 325 | 697 | 959 | |||||||||||
Net loss | $ | (17,419 | ) | $ | (6,966 | ) | $ | (41,756 | ) | $ | (45,320 | ) | |||
Net loss attributable to redeemable non-controlling interest | 580 | — | $ | 863 | — | ||||||||||
Net loss attributable to New Relic | $ | (16,839 | ) | $ | (6,966 | ) | $ | (40,893 | ) | $ | (45,320 | ) | |||
Net loss attributable to New Relic per share, basic and diluted | $ | (0.30 | ) | $ | (0.13 | ) | $ | (0.72 | ) | $ | (0.83 | ) | |||
Weighted-average shares used to compute net loss per share, basic and diluted | 56,917 | 55,669 | 56,884 | 54,814 |
March 31, | March 31, | |||||||
2019 | 2018 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 234,356 | $ | 132,479 | ||||
Short-term investments | 510,372 | 115,441 | ||||||
Accounts receivable, net of allowance for doubtful accounts of $2,457 and $1,728, respectively | 120,605 | 99,488 | ||||||
Prepaid expenses and other current assets | 21,838 | 15,591 | ||||||
Deferred contract acquisition costs | 27,161 | — | ||||||
Total current assets | 914,332 | 362,999 | ||||||
Property and equipment, net | 80,742 | 53,899 | ||||||
Restricted cash | 8,805 | 8,202 | ||||||
Goodwill | 41,512 | 11,828 | ||||||
Intangible assets, net | 13,855 | 1,312 | ||||||
Deferred contract acquisition costs, non-current | 26,218 | — | ||||||
Other assets, non-current | 4,763 | 5,086 | ||||||
Total assets | $ | 1,090,227 | $ | 443,326 | ||||
Liabilities, redeemable non-controlling interest, and stockholders’ equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 10,249 | $ | 2,985 | ||||
Accrued compensation and benefits | 23,537 | 17,414 | ||||||
Other current liabilities | 14,572 | 8,619 | ||||||
Deferred revenue | 267,000 | 189,633 | ||||||
Total current liabilities | 315,358 | 218,651 | ||||||
Convertible senior notes, net | 405,937 | — | ||||||
Deferred rent, non-current | 11,025 | 8,147 | ||||||
Deferred revenue, non-current | 4,597 | 649 | ||||||
Other liabilities, non-current | 947 | 775 | ||||||
Total liabilities | 737,864 | 228,222 | ||||||
Redeemable non-controlling interest | 2,733 | — | ||||||
Stockholders’ equity: | ||||||||
Common stock, $0.001 par value | 58 | 56 | ||||||
Treasury stock - at cost (260 shares) | (263 | ) | (263 | ) | ||||
Additional paid-in capital | 654,759 | 521,119 | ||||||
Accumulated other comprehensive income (loss) | 645 | (324 | ) | |||||
Accumulated deficit | (305,569 | ) | (305,484 | ) | ||||
Total stockholders’ equity | 349,630 | 215,104 | ||||||
Total liabilities, redeemable non-controlling interest, and stockholders’ equity | $ | 1,090,227 | $ | 443,326 |
Year Ended March 31, | |||||||
2019 | 2018 | ||||||
Cash flows from operating activities: | |||||||
Net loss attributable to New Relic | $ | (40,893 | ) | $ | (45,320 | ) | |
Net loss attributable to redeemable non-controlling interest | $ | (863 | ) | $ | — | ||
Net loss: | $ | (41,756 | ) | $ | (45,320 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation and amortization | 53,794 | 23,243 | |||||
Amortization of debt discount and issuance costs | 17,404 | — | |||||
Stock-based compensation expense | 56,198 | 40,598 | |||||
Other | (1,655 | ) | 1,559 | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable, net | (22,557 | ) | (38,315 | ) | |||
Prepaid expenses and other assets | (1,814 | ) | (9,794 | ) | |||
Deferred contract acquisition costs | (38,667 | ) | — | ||||
Accounts payable | 245 | (1,823 | ) | ||||
Accrued compensation and benefits and other liabilities | 11,539 | 2,112 | |||||
Deferred revenue | 81,559 | 63,878 | |||||
Deferred rent | 1,227 | (488 | ) | ||||
Net cash provided by operating activities | 115,517 | 35,650 | |||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (43,303 | ) | (21,368 | ) | |||
Cash paid for acquisition, net of cash acquired | (30,432 | ) | — | ||||
Purchases of short-term investments | (659,428 | ) | (128,669 | ) | |||
Proceeds from sale and maturity of short-term investments | 267,657 | 131,135 | |||||
Capitalized software development costs | (5,162 | ) | (4,843 | ) | |||
Net cash used in investing activities | (470,668 | ) | (23,745 | ) | |||
Cash flows from financing activities: | |||||||
Investment from redeemable non-controlling interest | 3,596 | — | |||||
Proceeds from issuance of convertible senior notes, net of issuance costs | 488,669 | — | |||||
Purchase of capped call related to convertible senior notes | (63,182 | ) | — | ||||
Proceeds from employee stock purchase plan | 11,165 | 7,592 | |||||
Proceeds from issuance of common stock | 17,383 | 24,764 | |||||
Net cash provided by financing activities | 457,631 | 32,356 | |||||
Net increase in cash, cash equivalents and restricted cash | 102,480 | 44,261 | |||||
Cash, cash equivalents and restricted cash at beginning of period | 140,681 | 96,420 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 243,161 | $ | 140,681 |
Three Months Ended March 31, | Year Ended March 31, | ||||||||||||||||||||||
2019 | 2019 | ||||||||||||||||||||||
ASC 605 | Adjustments | ASC 606 | ASC 605 | Adjustments | ASC 606 | ||||||||||||||||||
Revenue | $ | 131,536 | $ | 561 | $ | 132,097 | $ | 477,875 | $ | 1,350 | $ | 479,225 | |||||||||||
Cost of revenue | 21,696 | — | 21,696 | 77,399 | — | 77,399 | |||||||||||||||||
Gross profit | 109,840 | 561 | 110,401 | 400,476 | 1,350 | 401,826 | |||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development | 32,112 | — | 32,112 | 104,859 | — | 104,859 | |||||||||||||||||
Sales and marketing | 75,593 | (3,618 | ) | 71,975 | 269,882 | (12,816 | ) | 257,066 | |||||||||||||||
General and administrative | 21,714 | 21,714 | 73,007 | 73,007 | |||||||||||||||||||
Total operating expenses | 129,419 | (3,618 | ) | 125,801 | 447,748 | (12,816 | ) | 434,932 | |||||||||||||||
Loss from operations | (19,579 | ) | 4,179 | (15,400 | ) | (47,272 | ) | 14,166 | (33,106 | ) | |||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest income | 4,077 | — | 4,077 | 13,103 | — | 13,103 | |||||||||||||||||
Interest expense | (5,747 | ) | — | (5,747 | ) | (19,679 | ) | — | (19,679 | ) | |||||||||||||
Other income (expense), net | (92 | ) | (92 | ) | (1,377 | ) | (1,377 | ) | |||||||||||||||
Loss before income taxes | (21,341 | ) | 4,179 | (17,162 | ) | (55,225 | ) | 14,166 | (41,059 | ) | |||||||||||||
Income tax provision | 257 | — | 257 | 697 | — | 697 | |||||||||||||||||
Net loss | $ | (21,598 | ) | $ | 4,179 | $ | (17,419 | ) | $ | (55,922 | ) | $ | 14,166 | $ | (41,756 | ) | |||||||
Net loss attributable to redeemable non-controlling interest | $ | 580 | 580 | $ | 863 | 863 | |||||||||||||||||
Net loss attributable to New Relic | $ | (21,018 | ) | $ | 4,179 | $ | (16,839 | ) | $ | (55,059 | ) | $ | 14,166 | $ | (40,893 | ) | |||||||
Net loss attributable to New Relic per share, basic and diluted | $ | (0.37 | ) | $ | 0.07 | $ | (0.30 | ) | $ | (0.97 | ) | $ | 0.25 | $ | (0.72 | ) | |||||||
Weighted-average shares used to compute net loss per share, basic and diluted | 56,917 | 56,917 | 56,884 | 56,884 |
Three Months Ended March 31, | |||||||||||||||
2019 | 2018 | ||||||||||||||
As Reported (ASC 606) | Impacts from Adoption | Without Adoption (ASC 605) | As Reported (ASC 605) | ||||||||||||
Reconciliation of gross profit and gross margin: | |||||||||||||||
GAAP gross profit | $ | 110,401 | $ | (561 | ) | $ | 109,840 | $ | 82,065 | ||||||
Plus: Stock-based compensation expense | 966 | — | 966 | 724 | |||||||||||
Plus: Amortization of purchased intangibles | 440 | — | 440 | 197 | |||||||||||
Plus: Amortization of stock-based compensation capitalized in software development costs | 182 | — | 182 | 225 |
Plus: Employer payroll tax on employee equity incentive plans | 137 | — | 137 | 93 | |||||||||||
Non-GAAP gross profit | $ | 112,126 | $ | (561 | ) | $ | 111,565 | $ | 83,304 | ||||||
GAAP gross margin | 84 | % | — | % | 84 | % | 83 | % | |||||||
Non-GAAP adjustments | 1 | % | — | % | 1 | % | 2 | % | |||||||
Non-GAAP gross margin | 85 | % | — | % | 85 | % | 85 | % | |||||||
Reconciliation of operating expenses: | |||||||||||||||
GAAP research and development | $ | 32,112 | $ | — | $ | 32,112 | $ | 19,646 | |||||||
Less: Stock-based compensation expense | (6,191 | ) | — | (6,191 | ) | (3,076 | ) | ||||||||
Less: Employer payroll tax on employee equity incentive plans | (598 | ) | — | (598 | ) | (412 | ) | ||||||||
Non-GAAP research and development | $ | 25,323 | $ | — | $ | 25,323 | $ | 16,158 | |||||||
GAAP sales and marketing | $ | 71,975 | $ | 3,618 | $ | 75,593 | $ | 55,006 | |||||||
Less: Stock-based compensation expense | (6,213 | ) | — | (6,213 | ) | (4,811 | ) | ||||||||
Less: Employer payroll tax on employee equity incentive plans | (577 | ) | — | (577 | ) | (390 | ) | ||||||||
Non-GAAP sales and marketing | $ | 65,185 | $ | 3,618 | $ | 68,803 | $ | 49,805 | |||||||
GAAP general and administrative | $ | 21,714 | $ | — | $ | 21,714 | $ | 14,945 | |||||||
Less: Stock-based compensation expense | (3,205 | ) | — | (3,205 | ) | (2,209 | ) | ||||||||
Less: Transaction costs related to acquisition | (461 | ) | — | (461 | ) | — | |||||||||
Less: Lawsuit litigation expense | (76 | ) | — | (76 | ) | — | |||||||||
Less: Employer payroll tax on employee equity incentive plans | (192 | ) | — | (192 | ) | (190 | ) | ||||||||
Non-GAAP general and administrative | $ | 17,780 | $ | — | $ | 17,780 | $ | 12,546 | |||||||
Reconciliation of income (loss) from operations and operating margin: | |||||||||||||||
GAAP loss from operations | $ | (15,400 | ) | $ | (4,179 | ) | $ | (19,579 | ) | $ | (7,532 | ) | |||
Plus: Stock-based compensation expense | 16,575 | — | 16,575 | 10,820 | |||||||||||
Plus: Amortization of purchased intangibles | 440 | — | 440 | 197 | |||||||||||
Plus: Transaction costs related to acquisition | 461 | — | 461 | — | |||||||||||
Plus: Amortization of stock-based compensation capitalized in software development costs | 182 | — | 182 | 225 | |||||||||||
Plus: Lawsuit litigation expense | 76 | — | 76 | — | |||||||||||
Plus: Employer payroll tax on employee equity incentive plans | 1,505 | — | 1,505 | 1,085 | |||||||||||
Non-GAAP income (loss) from operations | $ | 3,839 | $ | (4,179 | ) | $ | (340 | ) | $ | 4,795 | |||||
GAAP operating margin | (12 | %) | (3 | %) | (15 | %) | (8 | %) | |||||||
Non-GAAP adjustments | 15 | % | — | % | 15 | % | 13 | % | |||||||
Non-GAAP operating margin | 3 | % | (3 | %) | — | % | 5 | % | |||||||
Reconciliation of net income (loss): | |||||||||||||||
GAAP net loss attributable to New Relic | $ | (16,839 | ) | $ | (4,179 | ) | $ | (21,018 | ) | $ | (6,966 | ) | |||
Plus: Stock-based compensation expense | 16,575 | — | 16,575 | 10,820 | |||||||||||
Plus: Amortization of purchased intangibles | 440 | — | 440 | 197 | |||||||||||
Plus: Transaction costs related to acquisition | 461 | — | 461 | — | |||||||||||
Plus: Amortization of stock-based compensation capitalized in software development costs | 182 | — | 182 | 225 | |||||||||||
Plus: Lawsuit litigation expense | 76 | — | 76 | — | |||||||||||
Plus: Employer payroll tax on employee equity incentive plans | 1,505 | — | 1,505 | 1,085 |
Plus: Amortization of debt discount and issuance costs | 5,093 | — | 5,093 | — | |||||||||||
Non-GAAP net income (loss) attributable to New Relic | $ | 7,493 | $ | (4,179 | ) | $ | 3,314 | $ | 5,361 | ||||||
Non-GAAP net income (loss) attributable to New Relic per share: | |||||||||||||||
Basic | $ | 0.13 | $ | (0.07 | ) | $ | 0.06 | $ | 0.10 | ||||||
Diluted | $ | 0.13 | $ | (0.07 | ) | $ | 0.06 | $ | 0.09 | ||||||
Shares used in non-GAAP per share calculations: | |||||||||||||||
Basic | 56,917 | — | 56,917 | 55,669 | |||||||||||
Diluted | 59,453 | — | 59,453 | 58,669 |
Year Ended March 31, | |||||||||||||||
2019 | 2018 | ||||||||||||||
As Reported (ASC 606) | Impacts from Adoption | Without Adoption (ASC 605) | As Reported (ASC 605) | ||||||||||||
Reconciliation of gross profit and gross margin: | |||||||||||||||
GAAP gross profit | $ | 401,826 | $ | (1,350 | ) | $ | 400,476 | $ | 292,333 | ||||||
Plus: Stock-based compensation expense | 3,487 | — | 3,487 | 2,440 | |||||||||||
Plus: Amortization of purchased intangibles | 1,273 | — | 1,273 | 1,187 | |||||||||||
Plus: Amortization of stock-based compensation capitalized in software development costs | 736 | — | 736 | 927 | |||||||||||
Plus: Employer payroll tax on employee equity incentive plans | 365 | — | 365 | 208 | |||||||||||
Non-GAAP gross profit | $ | 407,687 | $ | (1,350 | ) | $ | 406,337 | $ | 297,095 | ||||||
GAAP gross margin | 84 | % | — | % | 84 | % | 82 | % | |||||||
Non-GAAP adjustments | 1 | % | — | % | 1 | % | 2 | % | |||||||
Non-GAAP gross margin | 85 | % | — | % | 85 | % | 84 | % | |||||||
Reconciliation of operating expenses: | |||||||||||||||
GAAP research and development | $ | 104,859 | $ | — | $ | 104,859 | $ | 74,332 | |||||||
Less: Stock-based compensation expense | (17,634 | ) | — | (17,634 | ) | (12,176 | ) | ||||||||
Less: Employer payroll tax on employee equity incentive plans | (1,385 | ) | — | (1,385 | ) | (967 | ) | ||||||||
Non-GAAP research and development | $ | 85,840 | $ | — | $ | 85,840 | $ | 61,189 | |||||||
GAAP sales and marketing | $ | 257,066 | $ | 12,816 | $ | 269,882 | $ | 207,021 | |||||||
Less: Stock-based compensation expense | (23,253 | ) | — | (23,253 | ) | (16,925 | ) | ||||||||
Less: Employer payroll tax on employee equity incentive plans | (1,306 | ) | — | (1,306 | ) | (1,080 | ) | ||||||||
Non-GAAP sales and marketing | $ | 232,507 | $ | 12,816 | $ | 245,323 | $ | 189,016 | |||||||
GAAP general and administrative | $ | 73,007 | $ | — | $ | 73,007 | $ | 57,788 | |||||||
Less: Stock-based compensation expense | (11,824 | ) | — | (11,824 | ) | (9,057 | ) | ||||||||
Less: Transaction costs related to acquisition | (1,267 | ) | — | (1,267 | ) | — | |||||||||
Less: Lawsuit litigation expense | (76 | ) | — | (76 | ) | — | |||||||||
Less: Employer payroll tax on employee equity incentive plans | (500 | ) | — | (500 | ) | (387 | ) | ||||||||
Non-GAAP general and administrative | $ | 59,340 | $ | — | $ | 59,340 | $ | 48,344 | |||||||
Reconciliation of income (loss) from operations and operating margin: | |||||||||||||||
GAAP loss from operations | $ | (33,106 | ) | $ | (14,166 | ) | $ | (47,272 | ) | $ | (46,808 | ) | |||
Plus: Stock-based compensation expense | 56,198 | — | 56,198 | 40,598 |
Plus: Amortization of purchased intangibles | 1,273 | — | 1,273 | 1,187 | |||||||||||
Plus: Transaction costs related to acquisition | 1,267 | — | 1,267 | — | |||||||||||
Plus: Amortization of stock-based compensation capitalized in software development costs | 736 | — | 736 | 927 | |||||||||||
Plus: Lawsuit litigation expense | 76 | — | 76 | — | |||||||||||
Plus: Employer payroll tax on employee equity incentive plans | 3,557 | — | 3,557 | 2,642 | |||||||||||
Non-GAAP income (loss) from operations | $ | 30,001 | $ | (14,166 | ) | $ | 15,835 | $ | (1,454 | ) | |||||
GAAP operating margin | (7 | %) | (2 | %) | (9 | %) | (13 | %) | |||||||
Non-GAAP adjustments | 13 | % | — | % | 13 | % | 13 | % | |||||||
Non-GAAP operating margin | 6 | % | (2 | %) | 4 | % | — | % | |||||||
Reconciliation of net income (loss): | |||||||||||||||
GAAP net loss attributable to New Relic | $ | (40,893 | ) | $ | (14,166 | ) | $ | (55,059 | ) | $ | (45,320 | ) | |||
Plus: Stock-based compensation expense | 56,198 | — | 56,198 | 40,598 | |||||||||||
Plus: Amortization of purchased intangibles | 1,273 | — | 1,273 | 1,187 | |||||||||||
Plus: Transaction costs related to acquisition | 1,267 | — | 1,267 | — | |||||||||||
Plus: Amortization of stock-based compensation capitalized in software development costs | 736 | — | 736 | 927 | |||||||||||
Plus: Lawsuit litigation expense | 76 | — | 76 | — | |||||||||||
Plus: Employer payroll tax on employee equity incentive plans | 3,557 | — | 3,557 | 2,642 | |||||||||||
Plus: Amortization of debt discount and issuance costs | 17,404 | — | 17,404 | — | |||||||||||
Non-GAAP net income (loss) attributable to New Relic | $ | 39,618 | $ | (14,166 | ) | $ | 25,452 | $ | 34 | ||||||
Non-GAAP net income (loss) attributable to New Relic per share: | |||||||||||||||
Basic | $ | 0.70 | $ | (0.25 | ) | $ | 0.45 | $ | — | ||||||
Diluted | $ | 0.66 | $ | (0.23 | ) | $ | 0.43 | $ | — | ||||||
Shares used in non-GAAP per share calculations: | |||||||||||||||
Basic | 56,884 | — | 56,884 | 54,814 | |||||||||||
Diluted | 59,751 | — | 59,751 | 57,528 |
Three Months Ended March 31, | Year Ended March 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net cash provided by operating activities | $ | 48,623 | $ | 11,557 | $ | 115,517 | $ | 35,650 | |||||||
Capital expenditures | (13,588 | ) | (3,791 | ) | (43,303 | ) | (21,368 | ) | |||||||
Capitalized software development costs | (1,352 | ) | (1,789 | ) | (5,162 | ) | (4,843 | ) | |||||||
Free cash flows (Non-GAAP) | $ | 33,683 | $ | 5,977 | $ | 67,052 | $ | 9,439 | |||||||
Net cash used in investing activities | $ | (11,320 | ) | $ | (13,272 | ) | $ | (470,668 | ) | $ | (23,745 | ) | |||
Net cash provided by financing activities | $ | 12,142 | $ | 8,957 | $ | 457,631 | $ | 32,356 |