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8-K - FORM 8-K - XOOM Corpd711516d8k.htm

Exhibit 99.1

Xoom Reports First Quarter 2014 Results

 

  - Revenue of $35.9 Million, increase of 48% from Q1 2013

 

  - Gross Sending Volume of $1.6 Billion, increase of 49% from Q1 2013

 

  - 1,130,367 Active Customers, increase of 34% from Q1 2013

SAN FRANCISCO, Calif., April 22, 2014 – Xoom Corporation (NASDAQ: XOOM), a leading digital money transfer provider, today announced financial results for the first quarter of 2014:

 

    Revenue for the first quarter was $35.9 million, an increase of 48% from the first quarter of 2013.

 

    Gross profit for the first quarter was $26.4 million, an increase of 57% from the first quarter of 2013.

 

    GAAP net income for the first quarter was $0.4 million, or $0.01 per diluted share, compared to a net loss of $79,000, or $0.00 per diluted share, for the first quarter of 2013.

 

    Adjusted EBITDA for the first quarter was $3.5 million, compared to $1.6 million for the first quarter of 2013.

 

    Non-GAAP earnings per diluted share for the first quarter was $0.06, compared to $0.02 per diluted share for the first quarter of 2013.

 

    Cash, cash equivalents, disbursement prefunding and short-term investments were $243.5 million as of March 31, 2014, compared to $249.5 million as of December 31, 2013.

 

    As of March 31, 2014 and December 31, 2013, we had no outstanding balance under our line of credit.

“We had a solid first quarter with continued momentum from mobile channels and high quality additions to our payout network generating strong financial results,” said John Kunze, president and chief executive officer, Xoom. “Risk management continues to be a critical differentiator for Xoom. With our industry best loss management, we are able to ensure a seamless consumer experience, while delivering our services at consistently faster speeds, on great margins.”

Operating Metrics

 

    Gross sending volume for the quarter grew 49% to $1.6 billion from the first quarter of 2013.

 

    Transactions for the quarter grew 42% to 2,896,639 from the first quarter of 2013.

 

    Active customers for the quarter grew 34% to 1,130,367 from the first quarter of 2013.

 

    New customers for the quarter grew 7% to 117,095 from the first quarter of 2013.

Highlights and Strategic Announcements

During the quarter, Xoom expanded its payout network and service innovations.

 

    Xoom partnered with Metrobank and Philippine National Bank (PNB) to offer instant deposits to Metrobank and PNB bank accounts in the Philippines, which, in addition to Xoom’s instant bank deposit service to BDO, provides Xoom customers the ability to instantly send money directly into their recipients’ accounts at three of the top five banks in the Philippines.

 

    Xoom partnered with HDFC Bank Limited to offer instant deposits to Rupee-denominated HDFC Bank accounts in India. This breakthrough service allows Xoom customers to instantly deposit money into their recipients’ HDFC Bank accounts in India 24 hours a day, seven days a week, 365 days a year, including bank holidays.


    Xoom partnered with Banco Popular Dominicano to offer deposit services to the bank’s checking and savings accounts in usually less than 15 minutes to the Dominican Republic and cash pick up services at more than 200 locations across the island, expanding Xoom’s total cash pickup network in the Dominican Republic to 576 locations.

Business Outlook

For Q2 2014, Xoom is targeting the following:

 

    Revenue to be between $38.0 million and $40.0 million.

 

    Adjusted EBITDA to be between $2.0 million and $4.0 million.

 

    GAAP diluted net income (loss) per share to be in the range of $(0.04) to $0.01.

 

    Non-GAAP diluted net income per share to be in the range of $0.02 to $0.06.

For Full Year 2014, Xoom is targeting the following:

 

    Revenue to be between $157.0 million and $162.0 million.

 

    Adjusted EBITDA to be between $12.0 million and $15.0 million.

 

    GAAP diluted net loss per share to be in the range of $0.09 to $0.02.

 

    Non-GAAP diluted net income per share to be in the range of $0.15 to $0.22.

Conference Call

Xoom plans to host a conference call today to review its first quarter 2014 results and to discuss its financial outlook for the second 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 12 month period ended March 31, 2014, Xoom’s more than 1.1 million active customers sent more than $6.1 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 and services, 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 mobile phones and 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 Annual Report on Form 10-K for the year ended December 31, 2013 and any subsequently filed reports on Forms 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 per share. Adjusted EBITDA excludes provision for income taxes, interest expense, interest income, amortization of acquired intangible asset, depreciation and other amortization expense, and expenses related to stock-based compensation. Non-GAAP net income excludes expenses related to stock-based compensation and amortization of acquired intangible asset. 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:

Sharrifah Al-Salem

Director of Investor Relations

IR@xoom.com

Robin Carr

Director of Public Relations

PR@xoom.com


XOOM CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)

 

     March 31,     December 31,  
     2014     2013  
     (unaudited)     (derived from
audited financial
statements)
 
Assets     

Current assets:

    

Cash and cash equivalents

   $ 98,010      $ 110,979   

Disbursement prefunding

     38,722        33,799   

Short-term investments

     106,767        104,678   

Customer funds receivable

     29,389        16,381   

Prepaid expenses and other current assets

     5,066        4,237   
  

 

 

   

 

 

 

Total current assets

     277,954        270,074   

Non-current assets:

    

Property, equipment and software, net

     5,254        4,855   

Goodwill

     9,032        —     

Intangibles, net

     5,746        250   

Restricted cash

     10,968        7,816   

Other assets

     966        1,084   
  

 

 

   

 

 

 

Total assets

   $ 309,920      $ 284,079   
  

 

 

   

 

 

 
Liabilities and Stockholders’ Equity     

Current liabilities:

    

Accounts payable and accrued expenses

   $ 9,220      $ 8,345   

Customer liabilities

     25,628        10,791   
  

 

 

   

 

 

 

Total current liabilities

     34,848        19,136   

Non-current liabilities:

    

Other non-current liabilities

     2,309        99   
  

 

 

   

 

 

 

Total liabilities

     37,157        19,235   

Commitments and Contingencies

    

Stockholders’ equity:

    

Convertible preferred stock, $0.0001 par value, 25,000,000 shares authorized; issued and outstanding 0 shares; aggregate liquidation preference $0 at March 31, 2014 and December 31, 2013

     —          —     

Common stock, $0.0001 par value, 500,000,000 shares authorized; issued and outstanding 37,983,793 and 37,583,945 shares at March 31, 2014 and December 31, 2013, respectively

     4        4   

Additional paid-in capital

     329,450        321,878   

Accumulated other comprehensive loss

     (5     —     

Accumulated deficit

     (56,686     (57,038
  

 

 

   

 

 

 

Total stockholders’ equity

     272,763        264,844   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 309,920      $ 284,079   
  

 

 

   

 

 

 


XOOM CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

 

     Three Months Ended  
     March 31,  
     2014     2013  
     (unaudited)  

Revenue

   $ 35,938      $ 24,315   

Cost of revenue

     9,578        7,519   
  

 

 

   

 

 

 

Gross profit

     26,360        16,796   
  

 

 

   

 

 

 

Marketing

     8,782        5,692   

Technology and development

     7,850        4,834   

Customer service and operations

     3,974        3,017   

General and administrative

     5,158        2,923   
  

 

 

   

 

 

 

Total operating expense

     25,764        16,466   
  

 

 

   

 

 

 

Income from operations

     596        330   
  

 

 

   

 

 

 

Other income (expense):

    

Interest expense

     (328     (447

Interest income

     76        36   

Other income

     20        4   
  

 

 

   

 

 

 

Income (loss) before provision for income taxes

     364        (77

Provision for income taxes

     12        2   
  

 

 

   

 

 

 

Net income (loss)

   $ 352      $ (79
  

 

 

   

 

 

 

Net income (loss) per share:

    

Basic

   $ 0.01      $ (0.00

Diluted

   $ 0.01      $ (0.00

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

    

Basic

     37,799        19,041   
  

 

 

   

 

 

 

Diluted

     41,710        19,041   
  

 

 

   

 

 

 

XOOM CORPORATION AND SUBSIDIARIES

Key Metrics

 

     Three Months Ended  
     March 31,  
     2014      2013  
     (unaudited)  

Other Financial and Operational Data:

     

Gross Sending Volume

   $ 1,576,690,682       $ 1,055,847,000   

Transactions

     2,896,639         2,039,000   

Active Customers

     1,130,367         841,819   

New Customers

     117,095         109,631   

Cost Per Acquisition of a New Customer

   $ 56       $ 40   

Adjusted EBITDA (in thousands)

   $ 3,523       $ 1,574   


XOOM CORPORATION AND SUBSIDIARIES

Reconciliation of GAAP to Non-GAAP Operating Results

 

     Three Months Ended  
     March 31,  
     2014     2013  
     (in thousands, except
per share data)
 
     (unaudited)  

Non-GAAP net income (loss) per share:

    

GAAP net income (loss)

   $ 352      $ (79

Add back: stock-based compensation

     1,924        778   

Add back: amortization of acquired intangible asset

     204        —     
  

 

 

   

 

 

 

Non-GAAP net income

   $ 2,480      $ 699   
  

 

 

   

 

 

 

Non-GAAP diluted net income per share

   $ 0.06      $ 0.02   
  

 

 

   

 

 

 

Non-GAAP diluted shares

     41,710        34,459   

Reconciliation of Adjusted EBITDA:

    

Net income (loss)

   $ 352      $ (79

Provision for income taxes

     12        2   

Interest expense

     328        447   

Interest income

     (76     (36

Amortization of acquired intangible asset

     204        —     

Depreciation and other amortization expense

     779        462   

Stock-based compensation

     1,924        778   
  

 

 

   

 

 

 

Adjusted EBITDA

   $ 3,523      $ 1,574   
  

 

 

   

 

 

 


XOOM CORPORATION AND SUBSIDIARIES

Forward-Looking Guidance

 

     Three Months Ending     Twelve Months Ending  
     June 30, 2014     December 31, 2014  
     From     To     From     To  
     (In thousands, except per share data)  

Net income (loss) per share:

        

GAAP net income (loss)

   $ (1,673   $ 325      $ (3,615   $ (618

Add back: stock-based compensation

     2,253        2,253        9,283        9,283   

Add back: amortization of acquired intangible asset

     204        204        814        814   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income

   $ 784      $ 2,782      $ 6,482      $ 9,479   
  

 

 

   

 

 

   

 

 

   

 

 

 

GAAP diluted net income (loss) per share

   $ (0.04   $ 0.01      $ (0.09   $ (0.02
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP diluted net income per share

   $ 0.02      $ 0.06      $ 0.15      $ 0.22   
  

 

 

   

 

 

   

 

 

   

 

 

 

GAAP diluted shares

     38,294        43,128        38,625        38,625   

Non-GAAP diluted shares

     43,128        43,128        43,029        43,029   

Adjusted EBITDA:

        

GAAP net income (loss)

   $ (1,673   $ 325      $ (3,615   $ (618

Provision for income taxes

     —          —          12        12   

Interest expense

     350        351        1,379        1,381   

Interest income

     (101     (100     (377     (376

Amortization of acquired intangible asset

     204        204        814        814   

Depreciation and other amortization expense

     967        967        4,504        4,504   

Stock-based compensation

     2,253        2,253        9,283        9,283   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 2,000      $ 4,000      $ 12,000      $ 15,000