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8-K - FORM 8-K - XOOM Corpd668675d8k.htm

Exhibit 99.1

Xoom Reports Fourth Quarter and Full Year 2013 Results

 

    Annual Revenue Growth of 53% to $122.2 Million

 

    Fourth Quarter YOY Growth of 45% to $32.1 Million

 

    Fourth Quarter Gross Sending Volume YOY Growth of 45% to $1.4 Billion

 

    Fourth Quarter Active Customers YOY Growth of 36% to 1,059,689

SAN FRANCISCO, Calif., February 4, 2014 – Xoom Corporation (NASDAQ: XOOM), a leading digital money transfer provider, today announced financial results for the fourth quarter and full year 2013:

 

    Revenue for the fourth quarter was $32.1 million, an increase of 45% from the fourth quarter of 2012.

 

    Gross profit for the fourth quarter was $22.0 million, an increase of 49% from the fourth quarter of 2012.

 

    GAAP net income for the fourth quarter was $1.2 million, or $0.03 per diluted share, compared to a net loss of $1.5 million, or a loss of $0.29 per diluted share, for the fourth quarter of 2012.

 

    Adjusted EBITDA for the fourth quarter was $3.3 million, compared to $260,000 for the fourth quarter of 2012.

 

    Non-GAAP earnings per diluted share was $0.06, compared to a loss of $0.15 per diluted share for the fourth quarter of 2012.

 

    Revenue for 2013 was $122.2 million, an increase of 53% from 2012.

 

    Gross profit for 2013 was $84.1 million, an increase of 58% from 2012.

 

    GAAP net income for 2013 was $6.3 million, or $0.17 per diluted share, compared to a net loss of $5.9 million, or a loss of $1.16 per diluted share, for 2012.

 

    Adjusted EBITDA for 2013 was $14.4 million, compared to a loss of $493,000 for 2012.

 

    Non-GAAP earnings per diluted share for 2013 was $0.27, compared to a loss of $0.68 per diluted share for 2012.

 

    Cash, cash equivalents, disbursement prefunding and short-term investments were $249.5 million as of December 31, 2013, compared to $85.3 million as of December 31, 2012.

 

    As of December 31, 2013, we had no outstanding balance under our line of credit, compared to $40.0 million as of December 31, 2012.

“2013 was a strong year, driven by game-changing money transfer services set forth by Xoom,” said John Kunze, president and chief executive officer, Xoom. “As we enter 2014, we will continue to lay the groundwork to provide even more value to customers in years to come.”

Operating Metrics

 

    Gross sending volume for the quarter grew 45% to $1.4 billion from the fourth quarter of 2012.

 

    Transactions for the quarter grew 42% to 2,744,000 from the fourth quarter of 2012.

 

    Active customers for the quarter grew 36% to 1,059,689 from the fourth quarter of 2012.

 

    New customers for the quarter grew 10% to 112,980 from the fourth quarter of 2012.


Highlights and Strategic Announcements

 

    During the quarter, Xoom announced an expansion of its payout network and service innovations.

 

    Xoom partnered with Éxito, Carulla and Surtimax supermarkets, which are part of Grupo Éxito — the largest retail company in South America. This partnership expanded Xoom’s payout network to more than 1,000 cash payout locations in Colombia.

 

    Xoom improved its service with BDO, the largest bank in the Philippines, and now provides Filipino recipients instant bank deposit to all BDO accounts and faster cash pick up at more than 700 BDO locations.

 

    In early 2014, Xoom announced two initiatives to provide a broader set of services to its customers.

 

    On January 10th, Xoom acquired BlueKite, LTD, a Guatemala-based developer of solutions and applications to improve the way people around the world pay their bills. The integration of BlueKite’s technology and acquisition of talent will enable Xoom to expand the portfolio of services it provides to its customers to include bill pay and cell phone top up services.

 

    On January 15th, Xoom announced its expansion into Vietnam, a market that is predominantly underserved in the online money transfer service, to enable its customers to send bank deposits in a secure, fast and cost-effective way.

Business Outlook

For Q1 2014, Xoom is targeting the following:

 

    Revenue to be between $33.0 million and $34.0 million.

 

    Adjusted EBITDA to be a loss between $1.0 million and $2.0 million.

 

    GAAP diluted net loss per share to be in the range of $0.13 to $0.11.

 

    Non-GAAP diluted net loss per share to be in the range of $0.08 to $0.05.

For Full Year 2014, Xoom is targeting the following:

 

    Revenue to be between $155.0 million and $160.0 million.

 

    Adjusted EBITDA to be between $7.0 million and $10.0 million.

 

    GAAP diluted net loss per share to be in the range of $0.20 to $0.12.

 

    Non-GAAP diluted net income per share to be in the range of $0.03 to $0.10.

Xoom plans to host a conference call today to review its fourth quarter and full year 2013 results and to discuss its financial outlook for the first quarter and full year 2014. The conference call can be accessed by dialing the toll free number (877) 440-7574 or the international number (253) 237-1314. The call is scheduled to begin at 2:00 p.m. PT / 5:00 p.m. ET and can be accessed via the Web at ir.xoom.com. The webcast will be available live, and a replay will be available following completion of the live broadcast for approximately 60 days.

About Xoom

Xoom is a leading digital money transfer provider in 31 countries, focused on helping consumers send money in a secure, fast and cost-effective way using their mobile phone, tablet or computer. During the year ended December 31, 2013, Xoom’s more than one million active customers sent more than $5.5 billion to family and friends. The company is headquartered in San Francisco and can be found online at www.xoom.com.


Forward-Looking Statements

This press release and Xoom’s scheduled conference call contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 relating to, among other things, expectations, plans, prospects and financial results for Xoom, including, but not limited to, its expectations regarding its expansion into new markets, market demand, future earnings, revenue and financial and operating metrics. These forward-looking statements are based upon the current expectations and beliefs of Xoom’s management as of the date of this press release and conference call, and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. All forward-looking statements made in this press release and during the conference call are based on information available to Xoom as of the date thereof, and Xoom disclaims any obligation to update these forward-looking statements.

In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: the evolving nature of the industry in which Xoom operates; its failure to attract new customers or retain existing customers; economic, political or regulatory factors beyond its control, in the U.S. or in countries to which its customers transfer money; fluctuations in foreign exchange rates; competitive pricing and marketing strategies by competitors; the adoption of competing technologies that supplant its services; the use of its services for illegal or improper purposes; the failure of partners to disburse funds according to Xoom’s instructions; its ability to contract for third-party services on commercially reasonable terms; the maintenance of its payment network on terms consistent with those currently in place or newly adopted regulations in the U.S or in countries to which its customers transfer money; increases in transaction processing fees; declines in customer confidence in its business or in money transfer providers generally; its ability to protect its intellectual property; the adoption of smartphones and mobile devices to access information on the Internet and use of its services; potential breaches of its security systems; and other risks and uncertainties.

For a detailed discussion of these and other cautionary statements, please refer to the risk factors discussed in filings with the U.S. Securities and Exchange Commission (“SEC”), including but not limited to Xoom’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2013, Xoom’s Registration Statement on Form S-1 declared effective on September 10, 2013, and any subsequently filed reports on Forms 10-K, 10-Q and 8-K. All documents are available through the SEC’s Electronic Data Gathering Analysis and Retrieval system (“EDGAR”) at www.sec.gov or Xoom’s website at www.xoom.com.

Non-GAAP Financial Measures

Xoom’s stated results include certain non-GAAP financial measures, including Adjusted EBITDA, non-GAAP net income and non-GAAP earnings/(loss) per share. Adjusted EBITDA excludes (benefit) provision for income taxes, interest expense, interest income, depreciation and amortization, and expenses related to stock-based compensation expense. Non-GAAP net income excludes expenses related to stock-based compensation expense. Adjusted EBITDA and Non-GAAP net income exclude these expenses as they are often excluded by other companies to help investors understand the operational performance of their business, and in the case of stock-based compensation, can be difficult to predict. Xoom believes these adjustments provide useful comparative information to investors.

Xoom considers these non-GAAP financial measures to be important because they provide useful measures of its operating performance and are used by its management for that purpose. In addition, investors often use measures such as these to evaluate the operating performance of a company. Non-GAAP results are presented for supplemental informational purposes only for understanding Xoom’s operating results. The non-GAAP results should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles, and may be different from non-GAAP measures used by other companies.

(Xoom-f)

Contacts:

Gloria Lee

Director of Investor Relations

IR@xoom.com

Robin Carr

Director of Public Relations

PR@xoom.com


XOOM CORPORATION AND SUBSIDIARY

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)

 

     December 31,     December 31,  
     2013     2012  
     (unaudited)     (derived from
audited financial
statements)
 
Assets     

Current assets:

    

Cash and cash equivalents

   $ 110,979      $ 45,077   

Disbursement prefunding

     33,799        15,070   

Short-term investments

     104,678        25,125   

Customer funds receivable

     16,381        9,318   

Prepaid expenses and other current assets

     4,237        4,934   
  

 

 

   

 

 

 

Total current assets

     270,074        99,524   

Non-current assets:

    

Property, equipment, software and intangible assets, net

     5,105        3,884   

Restricted cash

     7,816        9,337   

Other assets

     1,084        348   
  

 

 

   

 

 

 

Total assets

   $ 284,079      $ 113,093   
  

 

 

   

 

 

 
Liabilities and Stockholders’ Equity     

Current liabilities:

    

Accounts payable and accrued expenses

   $ 8,345      $ 7,150   

Customer liabilities

     10,791        8,536   

Line of credit

     —          15,000   
  

 

 

   

 

 

 

Total current liabilities

     19,136        30,686   

Non-current liabilities:

    

Non-current portion of line of credit

     —          25,000   

Other non-current liabilities

     99        87   
  

 

 

   

 

 

 

Total liabilities

     19,235        55,773   

Commitments and Contingencies

    

Stockholders’ equity:

    

Convertible preferred stock, $0.0001 par value. Authorized 25,000,000 and 86,726,665 shares; issued and outstanding 0 and 21,444,251 shares; aggregate liquidation preference $0 and $115,404 at December 31, 2013 and December 31, 2012, respectively

     —          2  

Common stock, $0.0001 par value. Authorized 500,000,000 and 135,000,000 shares; issued and outstanding 37,583,945 and 5,083,616 shares at December 31, 2013 and December 31, 2012, respectively

     4        1   

Additional paid-in capital

     321,878        120,684   

Accumulated other comprehensive loss

     —          (1

Accumulated deficit

     (57,038     (63,366
  

 

 

   

 

 

 

Total stockholders’ equity

     264,844        57,320   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 284,079      $ 113,093   
  

 

 

   

 

 

 


XOOM CORPORATION AND SUBSIDIARY

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

 

     Three Months Ended     Twelve Months Ended  
     December 31,     December 31,  
     2013     2012     2013     2012  
     (unaudited)  

Revenue

   $ 32,119      $ 22,162      $ 122,206      $ 80,016   

Cost of revenue

     10,080        7,404        38,082        26,779   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     22,039        14,758        84,124        53,237   
  

 

 

   

 

 

   

 

 

   

 

 

 

Marketing

     7,015        5,431        25,926        21,496   

Technology and development

     6,016        4,281        22,451        15,950   

Customer service and operations

     3,713        3,102        13,552        10,964   

General and administrative

     3,791        2,906        13,145        9,135   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expense

     20,535        15,720        75,074        57,545   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     1,504        (962     9,050        (4,308
  

 

 

   

 

 

   

 

 

   

 

 

 

Other income (expense):

        

Interest expense

     (303     (515     (1,837     (1,504

Interest income

     80        18        203        85   

Other expense

     (106     (14     (1,051     (125
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before provision for income taxes

     1,175        (1,473     6,365        (5,852

Provision for income taxes

     22        —          37        2   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ 1,153      $ (1,473   $ 6,328      $ (5,854
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) per share:

        

Basic

   $ 0.03      $ (0.29   $ 0.20      $ (1.16

Diluted

   $ 0.03      $ (0.29   $ 0.17      $ (1.16

Weighted-average shares used to compute net income (loss) per share:

        

Basic

     37,494        5,071        30,906        5,049   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     41,690        5,071        37,912        5,049   
  

 

 

   

 

 

   

 

 

   

 

 

 

XOOM CORPORATION AND SUBSIDIARY

Key Metrics

 

     Three Months Ended      Twelve Months Ended  
     December 31,      December 31,  
     2013      2012      2013      2012  
     (unaudited)  

Other Financial and Operational Data :

           

Gross Sending Volume

   $ 1,366,767,000       $ 940,154,000       $ 5,544,755,000       $ 3,248,457,000   

Transactions

     2,744,000         1,935,000         9,987,600         6,617,000   

Active Customers

     1,059,689         776,426         1,059,689         776,426   

New Customers

     112,980         102,845         481,110         405,304   

Cost Per Acquisition of a New Customer

   $ 49       $ 41       $ 43       $ 43   

Adjusted EBITDA (in thousands)

   $ 3,333       $ 260       $ 14,378       $ (493


XOOM CORPORATION AND SUBSIDIARY

Reconciliation of GAAP to Non-GAAP Operating Results

 

     Three Months Ended     Twelve Months Ended  
     December 31,     December 31,  
     2013     2012     2013     2012  
     (in thousands)  
     (unaudited)  

Non-GAAP net income (loss) per share:

        

GAAP net income (loss)

   $ 1,153      $ (1,473   $ 6,328      $ (5,854

Add back: stock-based compensation

     1,232        733        4,069        2,445   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income (loss)

   $ 2,385      $ (740   $ 10,397      $ (3,409
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Diluted Net Income (Loss) Per Share

   $ 0.06      $ (0.15   $ 0.27      $ (0.68
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Diluted Shares

     41,690        5,071        37,912        5,049   

Reconciliation of Adjusted EBITDA:

        

Net income (loss)

   $ 1,153      $ (1,473   $ 6,328      $ (5,854

(Benefit) provision for income taxes

     22        —          37        2   

Interest expense

     303        515        1,837        1,504   

Interest income

     (80     (18     (203     (85

Depreciation and amortization

     703        503        2,310        1,495   

Stock-based compensation

     1,232        733        4,069        2,445   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 3,333      $ 260      $ 14,378      $ (493
  

 

 

   

 

 

   

 

 

   

 

 

 

XOOM CORPORATION AND SUBSIDIARY

Forward-Looking Guidance

 

     Three Months Ending     Twelve Months Ending  
     March 31, 2014     December 31, 2014  
     From     To     From     To  
     (In thousands, except per share data)  

Net income (loss) per share:

        

GAAP net loss

   $ (5,015   $ (4,017   $ (7,753   $ (4,755

Add back: stock-based compensation

     1,942        1,942        9,201        9,201   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income (loss)

   $ (3,073   $ (2,075   $ 1,448      $ 4,446   
  

 

 

   

 

 

   

 

 

   

 

 

 

GAAP Diluted Net Loss Per Share

   $ (0.13   $ (0.11   $ (0.20   $ (0.12
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Diluted Net Income (Loss) Per Share

   $ (0.08   $ (0.05   $ 0.03      $ 0.10   
  

 

 

   

 

 

   

 

 

   

 

 

 

GAAP Diluted Shares

     37,956        37,956        38,875        38,875   

Non-GAAP Diluted Shares

     37,956        37,956        43,219        43,219   

Adjusted EBITDA:

        

GAAP net loss

   $ (5,015   $ (4,017   $ (7,753   $ (4,755

Provision for income taxes

     2        2        2        2   

Interest expense

     325        325        1,302        1,302   

Interest income

     (112     (110     (430     (428

Depreciation and amortization

     858        858        4,678        4,678   

Stock-based compensation

     1,942        1,942        9,201        9,201   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ (2,000   $ (1,000   $ 7,000      $ 10,000