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Exhibit 99.1

 

For Immediate Release

 

Tangoe, Inc. Announces Fourth Quarter and Full Year 2012 Financial Results

 

Fourth Quarter Highlights:

·                  Total revenue of $44.0 million, up 51% year-over-year

·                  GAAP operating income of $2.3 million; non-GAAP operating income of $7.2 million, up 106% year-over-year

·                  GAAP net income of $1.9 million; non-GAAP net income of $6.8 million, up 113% year-over-year

·                  Adjusted EBITDA of $7.5 million, a record quarterly adjusted EBITDA margin of 17% and up 103% year-over-year

 

Orange, Conn., February 13, 2013 — Tangoe, Inc. (NASDAQ: TNGO), a leading global provider of communications lifecycle management (CLM) software and related services, today announced financial results for its fourth quarter and full year ended December 31, 2012.

 

“Our fourth quarter marked a strong finish to the year, and it was highlighted by revenue growth that was above our expectations,” stated Al Subbloie, president and CEO of Tangoe.  “During 2012 we significantly increased the scale of Tangoe, expanded our product offering and enhanced our lead in the CLM market place.  Our market share gains continue to be fueled by the combination of new customer wins, robust cross sell activity, momentum with our strategic alliance partners, geographic expansion and strong renewal rates.”

 

Subbloie added, “Tangoe entered 2013 with strong momentum as we continue to grow our pipeline of opportunities and scale our global distribution resources.  We continue to expect the company to deliver a combination of strong organic growth and margin expansion during 2013.  In addition, we believe that Tangoe has further improved its position to become the primary winner in the multi-billion dollar CLM opportunity over the long-term.”

 



 

Fourth Quarter 2012 Financial Highlights

 

·                  Revenue: Total revenue for the fourth quarter was $44.0 million, an increase of 51% on a year-over-year basis.  Recurring technology and services revenue was $39.0 million, an increase of 51% on a year-over-year basis.  Strategic consulting, software licenses and other services revenue contributed the remaining $5.0 million of total revenue for the fourth quarter of 2012.

 

·                  Operating Income: GAAP operating income for the fourth quarter was $2.3 million, compared to a GAAP operating income of $1.2 million for the fourth quarter of 2011.  Non-GAAP operating income for the fourth quarter was $7.2 million, representing an increase of 106% compared to $3.5 million for the fourth quarter of 2011.

 

·                  Net Income (Loss): GAAP net income for the fourth quarter was $1.9 million, compared to $0.9 million of net income for the same period last year. GAAP diluted income per share for the fourth quarter was $0.05, based on 40.7 million weighted-average diluted shares outstanding, compared to income per share of $0.02, based on 38.5 million weighted-average diluted shares outstanding, for the same period last year.

 

Non-GAAP net income for the fourth quarter was $6.8 million, up 113% compared to $3.2 million for the fourth quarter of 2011. Non-GAAP diluted net income per share for the fourth quarter was $0.17 based on 40.7 million weighted-average diluted shares outstanding compared to $0.08 per share based on 38.5 million weighted-average diluted shares outstanding for the same period last year.

 

·                  Adjusted EBITDA: Adjusted EBITDA for the fourth quarter was $7.5 million, an increase of 103% compared to $3.7 million for the fourth quarter of 2011. Adjusted EBITDA margin was a record 17.1% for the fourth quarter of 2012, an increase compared to a 12.7% margin for the same period last year.

 



 

·                  Cash and Cash Flow: As of December 31, 2012, Tangoe had cash and cash equivalents of $50.2 million, a decrease of $5.5 million from the end of the prior quarter due primarily to the payment of deferred purchase price obligations for acquisitions and the repurchase of common shares during the quarter.

 

The company generated $3.2 million in net cash from operations for the fourth quarter of 2012, compared to $4.8 million during the fourth quarter of 2011.  The company generated $2.7 million in unlevered free cash flow for the quarter, compared to $4.4 million during the fourth quarter of 2011.

 

Full Year 2012 Financial Highlights

 

·                  Revenue: Total revenue for the full year 2012 was $154.5 million, an increase of 47% on a year-over-year basis. Recurring technology and services revenue was $138.0 million, an increase of 47% on a year-over-year basis. Strategic consulting, software licenses and other services contributed the remaining $16.5 million of total revenue for 2012.

 

·                  Operating Income: GAAP operating income for the full year 2012 was $4.4 million, compared to GAAP operating income of $2.6 million for 2011.  Non-GAAP operating income was $21.1 million, representing an increase of 74% compared to $12.1 million for 2011.

 

·                  Net Income (Loss): GAAP net income for the full year 2012 was $3.0 million, compared to a $3.0 million net loss for 2011. GAAP diluted net income per share was $0.08 based on 39.9 million weighted-average diluted shares outstanding for the full year 2012, compared to a loss per share of $0.31, after deducting dividends and accretion related to our preferred stock and based on 16.4 million weighted-average diluted shares outstanding for 2011.

 

Non-GAAP net income for the full year 2012 was $19.7 million, up 105% compared to $9.6 million for 2011. Non-GAAP diluted net income per share for 2012 was $0.50 based on 39.9 million weighted-average diluted shares outstanding,

 



 

an increase of 72% compared to $0.29 per share based on 33.5 million weighted-average diluted shares outstanding for 2011.

 

·                  Adjusted EBITDA: Adjusted EBITDA for the full year 2012 was $22.3 million, an increase of 76% compared to $12.7 million for 2011. Adjusted EBITDA margin was 14.4% for 2012, representing a record annual adjusted EBITDA margin and an increase compared to a 12.1% margin for 2011.

 

·                  Cash Flow: The Company generated $16.7 million in net cash from operations during the full year 2012, compared to $10.1 million in 2011.  The Company generated $15.0 million in unlevered free cash flow for 2012, an increase of 41% compared to $10.6 million for 2011.

 

A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

 

Financial Outlook

 

As of February 13, 2013, Tangoe is providing guidance for its first quarter and raising its full year 2013 guidance:

 

·                  First Quarter 2013 Guidance: Total revenue is expected to be in the range of $43.8 million to $44.3 million. Adjusted EBITDA is expected to be in the range of $6.4 million to $6.6 million.  Non-GAAP net income per share is expected to be approximately $0.14 based on approximately 40.8 million weighted-average diluted shares outstanding.

 

·                  Full Year 2013 Guidance: Total revenue is expected to be in the range of $188.5 million to $191.5 million.  Adjusted EBITDA is expected to be in the range of $31.0 million to $32.0 million.  Non-GAAP net income per share is expected to be in the range of $0.67 to $0.70 based on approximately 41.0 million weighted-average diluted shares outstanding.

 



 

Quarterly Conference Call

 

Tangoe will host a conference call today at 5:00 p.m. EST to review the company’s financial results for the fourth quarter and full year 2012 and business outlook. To access this call, dial 800.390.5705 (United States), or 719.325.2271 (international), with conference ID #2193548. A live webcast of the conference call will be accessible from the investor relations page of Tangoe’s website at http://investor.tangoe.com/, and a recording will be archived and accessible at http://investor.tangoe.com/events.cfm. A recording of this conference call will also be available through February 27, 2012, by dialing 877.870.5176 (United States), or 858.384.5517 (international). The recording access code is #2193548.

 

About Tangoe

 

Tangoe is a leading global provider of Communications Lifecycle Management (CLM) software and services to a wide range of global enterprises. CLM encompasses the entire lifecycle of an enterprise’s communications assets and services, including planning and sourcing, procurement and provisioning, inventory and usage management, mobile device management, invoice processing, expense allocation and accounting, and asset decommissioning and disposal. Tangoe’s Communications Management Platform (CMP) is an on-demand suite of software designed to manage and optimize the complex processes and expenses associated with this lifecycle for both fixed and mobile communications assets and services. Tangoe’s customers can also manage their communications assets and services by engaging Tangoe’s client service group.

 

Additional information about Tangoe can be found at www.tangoe.com. Tangoe is a registered trademark of Tangoe, Inc.

 

Non-GAAP Financial Measures

 

Adjusted EBITDA discussed in this press release is defined as net income (loss) plus interest expense, other expense, income tax provision, depreciation and amortization, amortization of marketing agreement intangible assets, stock-based compensation

 



 

expense and, for 2011 only, restructuring charge and increase in fair value of warrants for redeemable convertible preferred stock; less amortization of leasehold interest and interest income.  Non-GAAP operating income excludes stock-based compensation expense, amortization of intangible assets, amortization of debt discount, and, for 2011 only, restructuring charge and amortization of deferred financing costs.  Non-GAAP net income excludes stock-based compensation expense, amortization of intangible assets, amortization of debt discount, and, for 2011 only, restructuring charge, term loan repayment fee, term loan debt discount, amortization of deferred financing costs and increase in fair value of warrants for redeemable convertible preferred stock.  Unlevered free cash flow is defined as net cash provided by operating activities plus net interest payments and, for 2011 only, IPO related expense payments, less capital expenditures. Management presents these non-GAAP financial measures because it considers them to be important supplemental measures of performance. Management uses the non-GAAP financial measures for planning purposes, including analysis of the company’s performance against prior periods, the preparation of operating budgets and determination of appropriate levels of operating and capital investments. Management also believes that the non-GAAP financial measures provide additional insight for analysts and investors in evaluating the company’s financial and operational performance. However, these non-GAAP financial measures have limitations as an analytical tool and are not intended to be an alternative to financial measures prepared in accordance with GAAP. We intend to provide these non-GAAP financial measures as part of our future earnings discussions and, therefore, the inclusion of these non-GAAP financial measures will provide consistency in our financial reporting. A reconciliation of these non-GAAP measures to GAAP is provided in the accompanying tables.

 



 

Forward-Looking Statements

 

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans and objectives of management are forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “would,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include, among other things, statements about our estimates regarding future revenue and financial performance.  We may not actually achieve the expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the expectations disclosed in the forward-looking statements we make. More information about potential factors that could affect our business and financial results is contained in our Quarterly Report on Form 10-Q as filed with the Securities and Exchange Commission on November 14, 2012. Additional information will also be set forth in our future quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings that we make with the Securities and Exchange Commission.  We do not intend, and undertake no duty, to release publicly any updates or revisions to any forward-looking statements contained herein.

 



 

TANGOE, INC.

 Consolidated Statements of Operations (unaudited)

(in thousands, except per share amounts)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December 31,

 

December 31,

 

 

 

2011

 

2012

 

2011

 

2012

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

Recurring technology and services

 

$

25,778

 

$

39,010

 

$

93,671

 

$

137,979

 

Strategic consulting, software licenses and other

 

3,463

 

4,960

 

11,270

 

16,533

 

Total revenue

 

29,241

 

43,970

 

104,941

 

154,512

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

Recurring technology and services

 

12,397

 

18,167

 

44,814

 

63,976

 

Strategic consulting, software licenses and other

 

1,532

 

1,792

 

5,165

 

6,627

 

Total cost of revenue

 

13,929

 

19,959

 

49,979

 

70,603

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

15,312

 

24,011

 

54,962

 

83,909

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Sales and marketing

 

4,874

 

7,108

 

16,648

 

24,840

 

General and administrative

 

4,922

 

7,487

 

17,777

 

29,317

 

Research and development

 

3,142

 

4,570

 

11,860

 

16,696

 

Depreciation and amortization

 

1,171

 

2,498

 

4,551

 

8,666

 

Restructuring charge

 

 

 

1,549

 

 

Income from operations

 

1,203

 

2,348

 

2,577

 

4,390

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net:

 

 

 

 

 

 

 

 

 

Interest expense

 

(184

)

(260

)

(3,047

)

(943

)

Interest income

 

24

 

20

 

45

 

80

 

Other expense

 

 

(9

)

 

(9

)

Increase in fair value of warrants for redeemable convertible preferred stock

 

 

 

(1,996

)

 

Income (loss) before income tax provision

 

1,043

 

2,099

 

(2,421

)

3,518

 

Income tax provision

 

140

 

172

 

534

 

480

 

Net income (loss)

 

903

 

1,927

 

(2,955

)

3,038

 

Preferred dividends

 

 

 

(2,168

)

 

Accretion of redeemable convertible preferred stock

 

 

 

(37

)

 

Income (loss) applicable to common stockholders

 

$

903

 

$

1,927

 

$

(5,160

)

$

3,038

 

 

 

 

 

 

 

 

 

 

 

Income (loss) per common share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.03

 

$

0.05

 

$

(0.31

)

$

0.08

 

Diluted

 

$

0.02

 

$

0.05

 

$

(0.31

)

$

0.08

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common share:

 

 

 

 

 

 

 

 

 

Basic

 

32,972

 

37,720

 

16,412

 

36,492

 

Diluted

 

38,493

 

40,673

 

16,412

 

39,870

 

 



 

 

TANGOE, INC.

Consolidated Balance Sheets

(in thousands)

 

 

 

December 31,

 

 

 

2011

 

2012

 

 

 

 

 

(Unaudited)

 

ASSETS

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

Cash and cash equivalents

 

$

43,407

 

$

50,211

 

Accounts receivable

 

25,311

 

38,309

 

Prepaid expenses and other current assets

 

2,503

 

3,384

 

Total current assets

 

71,221

 

91,904

 

COMPUTERS, FURNITURE AND EQUIPMENT-NET

 

3,334

 

3,999

 

 

 

 

 

 

 

OTHER ASSETS:

 

 

 

 

 

Intangible assets-net

 

28,800

 

44,249

 

Goodwill

 

36,266

 

65,825

 

Security deposits and other non-current assets

 

1,241

 

1,291

 

TOTAL ASSETS

 

$

140,862

 

$

207,268

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

Accounts payable

 

$

6,605

 

$

9,128

 

Accrued expenses

 

7,061

 

12,035

 

Deferred revenue-current portion

 

9,051

 

9,648

 

Notes payable-current portion

 

7,904

 

22,443

 

Other current liabilities

 

1,079

 

305

 

Total current liabilities

 

31,700

 

53,559

 

 

 

 

 

 

 

OTHER LIABILITIES:

 

 

 

 

 

Deferred rent and other non-current liabilities

 

1,659

 

3,543

 

Deferred revenue-less current portion

 

2,624

 

1,415

 

Notes payable-less current portion

 

8,290

 

131

 

Total liabilities

 

44,273

 

58,648

 

 

 

 

 

 

 

COMMITMENT AND CONTINGENCIES

 

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

Common Stock

 

3

 

4

 

Additional paid-in capital

 

142,905

 

191,581

 

Warrants for common stock

 

10,610

 

10,610

 

Less: notes receivable for purchase of common stock

 

(93

)

 

Accumulated deficit

 

(56,795

)

(53,757

)

Other comprehensive (loss) income

 

(41

)

182

 

Total stockholders’ equity

 

96,589

 

148,620

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

140,862

 

$

207,268

 

 



 

TANGOE, Inc.

 Consolidated Statements of Cash Flows

(in thousands)

 

 

 

For the Years Ended
December 31,

 

 

 

2011

 

2012

 

Operating activities:

 

 

 

 

 

Net (loss) income

 

$

(2,955

)

$

3,038

 

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

 

 

 

 

 

Amortization of debt discount

 

1,339

 

801

 

Amortization of leasehold interest

 

 

(99

)

Depreciation and amortization

 

4,551

 

8,666

 

Restructuring charge

 

1,549

 

 

(Decrease) increase in deferred rent liability

 

(58

)

19

 

Amortization of marketing agreement intangible assets

 

92

 

174

 

Allowance for doubtful accounts

 

23

 

96

 

Deferred income taxes

 

305

 

183

 

Stock based compensation

 

3,980

 

9,165

 

Foreign exchange loss

 

 

46

 

Increase in fair value of warrants for redeemable convertible preferred stock

 

1,996

 

 

Changes in assets and liabilities, net of acquisitions:

 

 

 

 

 

Accounts receivable

 

(4,437

)

(5,883

)

Prepaid expenses and other assets

 

47

 

170

 

Other assets

 

(381

)

(19

)

Accounts payable

 

3,054

 

1,310

 

Accrued expenses

 

(184

)

885

 

Deferred revenue

 

1,226

 

(1,864

)

Net cash provided by operating activities

 

10,147

 

16,688

 

Investing activities:

 

 

 

 

 

Purchases of computers, furniture and equipment

 

(853

)

(1,820

)

Cash paid in connection with acquisitions

 

(22,194

)

(38,410

)

Net cash used in investing activities

 

(23,047

)

(40,230

)

Financing activities:

 

 

 

 

 

Repayment of debt

 

(38,018

)

(9,676

)

Borrowings of debt

 

20,000

 

778

 

Proceeds from public offerings, net of issuance costs

 

66,989

 

37,729

 

Repurchase of common stock

 

 

(2,700

)

Deferred financing costs

 

(170

)

 

Proceeds from notes receivable

 

 

93

 

Proceeds from exercise of stock options and stock warrants

 

1,593

 

4,174

 

Net cash provided by financing activities

 

50,394

 

30,398

 

 

 

 

 

 

 

Effect of exchange rate on cash

 

 

(52

)

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

37,494

 

6,804

 

Cash and cash equivalents, beginning of period

 

5,913

 

43,407

 

Cash and cash equivalents, end of period

 

$

43,407

 

$

50,211

 

 



 

TANGOE, INC.

Calculation of Non-GAAP Operating Income (Unaudited)

(in thousands)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December 31,

 

December 31,

 

 

 

2011

 

2012

 

2011

 

2012

 

 

 

 

 

% of

 

 

 

% of

 

 

 

% of

 

 

 

% of

 

 

 

Amount

 

Revenue

 

Amount

 

Revenue

 

Amount

 

Revenue

 

Amount

 

Revenue

 

Income from operations

 

$

1,203

 

4.1%

 

$

2,348

 

5.3%

 

$

2,577

 

2.5%

 

$

4,390

 

2.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock based compensation expense

 

1,316

 

4.5%

 

2,626

 

6.0%

 

3,980

 

3.8%

 

9,165

 

5.9%

 

Restructuring costs

 

 

0.0%

 

 

0.0%

 

1,549

 

1.5%

 

 

0.0%

 

Amortization of intangibles

 

828

 

2.8%

 

2,034

 

4.6%

 

3,052

 

2.9%

 

6,744

 

4.4%

 

Amortization of debt discount

 

158

 

0.5%

 

231

 

0.5%

 

698

 

0.7%

 

801

 

0.5%

 

Amortization of deferred financing costs

 

 

0.0%

 

 

0.0%

 

227

 

0.2%

 

 

0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP income from operations

 

$

3,505

 

12.0%

 

$

7,239

 

16.5%

 

$

12,083

 

11.5%

 

$

21,100

 

13.7%

 

 

TANGOE, INC.

Reconciliation of Net (loss) income to Adjusted EBITDA (Unaudited)

(in thousands)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December 31,

 

December 31,

 

 

 

2011

 

2012

 

2011

 

2012

 

 

 

 

 

% of

 

 

 

% of

 

 

 

% of

 

 

 

% of

 

 

 

Amount

 

Revenue

 

Amount

 

Revenue

 

Amount

 

Revenue

 

Amount

 

Revenue

 

Net income (loss)

 

$

903

 

3.1%

 

$

1,927

 

4.4%

 

$

(2,955

)

-2.8%

 

$

3,038

 

2.0%

 

Interest expense

 

184

 

0.6%

 

260

 

0.6%

 

3,047

 

2.9%

 

943

 

0.6%

 

Interest income

 

(24

)

-0.1%

 

(20

)

0.0%

 

(45

)

0.0%

 

(80

)

-0.1%

 

Other (income) expense

 

 

0.0%

 

9

 

0.0%

 

 

0.0%

 

9

 

0.0%

 

Income tax provision

 

140

 

0.5%

 

172

 

0.4%

 

534

 

0.5%

 

480

 

0.3%

 

Depreciation and amortization

 

1,171

 

4.0%

 

2,498

 

5.7%

 

4,551

 

4.3%

 

8,666

 

5.6%

 

Amortization of marketing agreement intangible assets

 

27

 

0.1%

 

55

 

0.1%

 

92

 

0.1%

 

174

 

0.1%

 

Amortization of leasehold interest

 

 

0.0%

 

(25

)

-0.1%

 

 

0.0%

 

(99

)

-0.1%

 

Stock based compensation expense

 

1,316

 

4.5%

 

2,626

 

6.0%

 

3,980

 

3.8%

 

9,165

 

5.9%

 

Restructuring charge

 

 

0.0%

 

 

0.0%

 

1,549

 

1.5%

 

 

0.0%

 

Increase in fair value of warrants for redeemable convertible preferred stock

 

 

0.0%

 

 

0.0%

 

1,996

 

1.9%

 

 

0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

3,717

 

12.7%

 

$

7,502

 

17.1%

 

$

12,749

 

12.1%

 

$

22,296

 

14.4%

 

 



 

TANGOE, INC.

Calculation of Non-GAAP Net Income and Non-GAAP Net Income per Share (Unaudited)

(in thousands, except per share data)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December 31,

 

December 31,

 

 

 

2011

 

2012

 

2011

 

2012

 

Net income (loss)

 

$

903

 

$

1,927

 

$

(2,955

)

$

3,038

 

 

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

 

Stock based compensation expense

 

1,316

 

2,626

 

3,980

 

9,165

 

Restructuring charge

 

 

 

1,549

 

 

Amortization of intangibles

 

828

 

2,034

 

3,052

 

6,744

 

Amortization of debt discount

 

158

 

231

 

698

 

801

 

Amortization of deferred financing costs

 

 

 

227

 

 

Increase in fair value of warrants for redeemable convertible preferred stock

 

 

 

1,996

 

 

Orix loan repayment

 

 

 

400

 

 

Term loan debt discount

 

 

 

641

 

 

Non-GAAP net income

 

$

3,205

 

$

6,818

 

$

9,588

 

$

19,748

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income per share: diluted

 

$

0.08

 

$

0.17

 

$

0.29

 

$

0.50

 

 

 

 

 

 

 

 

 

 

 

Fully diluted weighted average shares outstanding

 

38,493

 

40,673

 

33,503

 

39,870

 

 

TANGOE, INC.

Stock Based Compensation Expense (Unaudited)

(in thousands)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December 31,

 

December 31,

 

 

 

2011

 

2012

 

2011

 

2012

 

Cost of revenue

 

$

170

 

$

400

 

$

669

 

$

1,347

 

Sales and marketing

 

612

 

678

 

1,201

 

2,133

 

General and administrative

 

487

 

1,378

 

1,934

 

5,105

 

Research and development

 

47

 

170

 

176

 

580

 

Total

 

$

1,316

 

$

2,626

 

$

3,980

 

$

9,165

 

 



 

TANGOE, INC.

Calculation of Unlevered Free Cash Flow (Unaudited)

(in thousands)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December 31,

 

December 31,

 

 

 

2011

 

2012

 

2011

 

2012

 

Net cash provided by operating activities

 

$

4,836

 

$

3,153

 

$

10,147

 

$

16,688

 

 

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

 

Interest payments, net

 

20

 

33

 

1,620

 

127

 

IPO Expense payments

 

 

 

466

 

 

 

 

 

 

 

 

 

 

 

 

Subtract:

 

 

 

 

 

 

 

 

 

Capital Expenditures

 

451

 

487

 

1,599

 

1,820

 

Unlevered Free Cash Flow

 

$

4,405

 

$

2,699

 

$

10,634

 

$

14,995

 

 

 

Investor Contact:

Seth Potter

ICR, Inc.

512.344.0277

ir@tangoe.com

 

Media Contact:

Kristin Conforti

PAN Communications, Inc.

617.502.4300

tangoe@pancomm.com