EX-99.2 3 exhibit992finalcovsq1fy1.htm EXHIBIT 99.2 exhibit992finalcovsq1fy1
8/4/2016 1 Covisint Corporation First Quarter Fiscal 2017 Results August 4, 2016


 
This presentation contains “forward-looking” statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, our results may differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to, any projections of financial information; any statements about historical results that may suggest trends for our business and results of operations; any statements of the plans, strategies and objectives of management for future operations; any statements of expectation or belief regarding future events, potential markets or market size, technology developments, or enforceability of our intellectual property rights; and any statements of assumptions underlying any of the foregoing. These statements are based on estimates and information available to us at the time of this presentation and are not guarantees of future performance. Actual results could differ materially from our current expectations as a result of many factors, including but not limited to: our ability to attract new customers; the extent to which customers renew their contracts for our solutions; the extent we are able to maintain pricing with our customers at renewal; the seasonality of our business; our ability to manage our growth; the continued growth of the market for our solutions; the success of our channel partner and certified partner strategies; competition from current competitors and new market entrants; our ability to penetrate new vertical markets; unpredictable macro-economic conditions; the loss of any of our key employees; the length of the sales and implementation cycles for our solutions; increased demands on our infrastructure and costs associated with operating as a public company; and failure to protect our intellectual property. These and other risks and uncertainties associated with our business are described in Item 1A “Risk Factors” in our Quarterly Report on Form 10-Q for the period ended June 30, 2016. We assume no obligation and do not intend to update these forward-looking statements. In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. These historical and forward-looking non-GAAP measures are in addition to, not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. A reconciliation between GAAP and non-GAAP measures is included in the appendix to this presentation. Covisint is a registered trademark of Covisint Corporation. This presentation also contains additional trademarks and service marks of ours and of other companies. We do not intend our use or display of other companies’ trademarks or service marks to imply a relationship with, or endorsement or sponsorship of us by, these other companies. Forward Looking Statements 2


 
FY17 Priorities 3 • Drive Subscription Revenue Sales Growth • Direct sales strategy focused on the automotive and auto-related sector • Use cases include: Connected Vehicle, Consumer Experience, Dealer Intelligence Systems, Supply Chain Enablement, Internet of Things, and Cloud Identity as a Service • Large white space opportunity among major OEMs • Enhanced development of additional strategic partnerships • Manage Cash Position Through Strong Expense Management • Targeted Investments in Marketing to Drive Awareness and Enablement • Further develop standing and recognition with leading industry analysts in auto and technology • Establish strong thought leadership cadence and awareness in areas of focus, including Connected Transportation, Internet of Things, and Identity and Access Management


 
4 Q1 FY17: Financial Overview Key Metrics ($ in thousands) Guidance Summary Highlights • Cash at $42 million • Non-GAAP Gross Margin improved from 52% to 58% year over year • Cash Flow better than plan * Excludes the impact of stock compensation and the expensing of certain R&D costs (rather than capitalizing such costs), refer to the reconciliation of Q1 results on slide 6 and the reconciliation of guidance on slide 7. ** Y/Y growth FY17 Q2FY17 Subscription Revenue** Flat (5)% 15-20% of 15-20% of Total Revenue Total Revenue Non-GAAP Net Loss* $(11) – (12) mil $(4) – (5) mil Cash on Hand (EOP) $30 mil $34 mil Total Shares Outstanding 40.7 mil 40.5 mil Services Revenue Q1 FY 17 Y/Y Q/Q Subscription Revenue $ 14,596 (7%) (15%) Services Revenue $ 2,849 1% 2% Total Revenue $ 17,445 (6%) (13%) Q1 FY 17 Y/Y Q/Q Gross Profit $ 9,225 6% (24%) Gross Margin 53% Stock Compensation Expense $ 5 Amortization of Capitalized Software $ 844 Non-GAAP Gross Profit* $ 10,074 5% (22%) Non-GAAP Gross Margin 58% Net Loss $ (5,003) Stock Compensation Expense $ 491 Capitalized internal software costs $ (688) Amortization of Capitalized Software $ 844 Non-GAAP Net Loss* $ (4,356) Net Change in Cash $ 2,078 Net proceeds from exercise of stock awards $ (45) Vendor Financing Repaym t $ 127 Effect of Exchange Rate Changes on Cash $ 43 Free Cash Flow $ 2,203


 
Appendix


 
6 Q1 FY17: Non-GAAP Reconciliation ($ in thousands, except per share) Q1'FY17 General and administrative 3,208 Adjustments: Stock compensation expense 433 General and administrative, non-GAAP 2,775 Q1'FY17 Net loss (5,003) Adjustments: Capitalized internal software costs (688) Stock compensation expense 491 Amortization of capitalized software and other intangibles 844 Net loss, non-GAAP (4,356) Q1'FY17 Diluted EPS (0.12) Adjustments: Capitalized internal software costs (0.02) Stock compensation expense 0.01 Amortization of capitalized software and other intangibles 0.02 Diluted EPS, non-GAAP (0.11) Q1'FY17 Cost of revenue 8,220 Adjustments: Stock compensation expense 5 Cost of revenue - amortization of capitalized software 844 Cost of revenue, non-GAAP 7,371 Q1'FY17 Research and development 3,776 Adjustments: Capitalized internal software costs (688) Stock compensati n expe se 4 Research and development, non-GAAP 4,460 Q1'FY17 Sales and marketing 7,210 Adjustments: Stock compensation expense 49 Sales and marketing, non-GAAP 7,161 Net Change in Cash $ 2,078 Net proceeds from exercise of stock awards $ (45) Vendor Financing Repayment $ 127 Effect of Exchange Rate Changes on Cash $ 43 Free Cash Flow $ 2,203


 
7 Non-GAAP Forecast Reconciliation ($ in millions) Forecast Net Loss (12.0) - (16.0) (3.8) - (6.2) Capitalized internal software costs (5.0) - (3.0) (1.5) - (0.5) Stock compensation expense 2.5 - 3.0 0.5 - 0.7 Amortization of capitalized software 3.5 - 4.0 0.8 - 1.0 Forecast Non-GAAP Net Loss (11.0) - (12.0) (4.0) - (5.0) Forec st Net Change in Cash (9.0) - (11.0) (7.0) - (9.0) Net proceeds from exercise of stock awards - - - - - - Vendor Financing Repayment - - - - - - Effect of exchange rate changes on cash - - - - - - Forecast Free Cash Flow (9.0) - (11.0) (7.0) - (9.0) FY 17 Q1 FY17