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8-K - FORM 8-K - Apigee Corpd48751d8k.htm

Exhibit 99.1

Apigee Announces Record Fourth Quarter Revenue of $18.7 Million;

51% year-over-year Growth in Q4 Product Revenue

 

    Q4 Revenue and non-GAAP operating loss better than guidance ranges

 

    FY 15 Gross Product Billings of $63.4 million, a 44% year-over-year increase

 

    FY 15 Gross Profit of $43.6 million, a 75% year-over-year increase

San Jose, Calif. – September 9, 2015 Apigee® (NASDAQ: APIC), developer of an intelligent API platform for digital business, today announced financial results for the fourth quarter and fiscal year ended July 31, 2015.

“We are pleased to deliver Q4 15 revenue and non-GAAP operating loss better than the high end of our guidance ranges,” said Chet Kapoor, Apigee CEO. “Our customers are helping create a digital revolution – delivering new digital products and services for consumers, employees and partners. We help enable the digital revolution by providing an API platform that enables apps to be quickly launched, to securely access data in backend systems and to reliably run at scale. In 2015 our customers processed hundreds of billions of API calls through our platform, delivering rich digital experiences to their users.”

Fourth Quarter 2015 Highlights:

For Q4 15, Apigee reported total revenue of $18.7 million, above the high end of its guidance range of $17.7 million to $18.3 million. Apigee reported Q4 15 product revenue (defined as license revenue plus subscription and support revenue) of $14.5 million, up 51% from $9.6 million in Q4 14. Q4 15 total revenue was up 26% compared to $14.9 million in Q4 14. Q4 15 Gross Billings were $21.1 million compared to $22.0 million a year ago. Q4 15 gross product billings were $16.4 million compared to $16.8 million a year ago.

Apigee reported Q4 15 GAAP gross margin of 66%, up from 57% a year ago, and non-GAAP gross margin of 68%, compared to 59% a year ago. Apigee reported Q4 15 GAAP operating loss of $12.4 million, compared to $15.6 million a year ago. Q4 15 non-GAAP operating loss was $11.0 million, compared to $14.1 million a year ago. Q4 15 GAAP net loss per share was $0.43. Q4 15 non-GAAP net loss per share was $0.38, above the high end of its guidance range of non-GAAP net loss per share of $0.40 to $0.42. Q4 15 operating cash flow was ($13.9) million compared to ($8.0) million a year ago. Total deferred revenue was $40.8 million, up 45% from $28.2 million at the end of Q4 14.

 

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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.”

Fiscal Year 2015 Highlights:

For FY 15, Apigee reported total revenue of $68.6 million, up 30% compared to $52.7 million in FY 14. Apigee reported FY 15 product revenue of $51.6 million, up 63% compared to $31.6 million in FY 14. Apigee reported FY 15 gross billings of $81.2 million, up 27% compared to $63.8 million in FY 14. FY 15 gross product billings were $63.4 million, up 44% compared to $44.0 million in FY 14.

Apigee reported FY 15 GAAP gross margin of 64%, up from 47% in FY 14. Non-GAAP gross margin was 65%, up from 49% in FY 14. Apigee reported FY 15 GAAP operating loss of $49.5 million, compared to $58.7 million in FY 14. FY 15 non-GAAP operating loss was $44.9 million, compared to $55.1 million in FY 14. FY 15 operating cash flow was ($37.4) million, compared to ($50.3) in FY 14.

Apigee Business:

Our customers are able to rapidly transform their businesses by delivering connected digital experiences across a variety of apps, data and devices for consumers, partners and employees. This digital transformation is enabled through application programing interfaces (APIs): a set of programming instructions that enable software applications to exchange information among systems. The recent proliferation of mobile apps and devices has led to significant increases of APIs, which need to be secured, managed, analyzed and scaled by enterprises. This has created a need for a new platform.

Apigee’s platform helps enterprises run their API ecosystem in the cloud, on premises or in a hybrid environment, so that applications can access APIs to obtain information from back-end systems securely, reliably and at scale. In FY 15, our customers processed hundreds of billions of API calls through our platform, delivering rich digital experiences to their users. Apigee also allows companies to manage the developer ecosystem around their APIs, giving them leverage to innovate faster through others.

Apigee serves this market through direct web-based and field-based sales as well as through partnerships with systems integrators and OEMs. In addition to acquiring new customers, we

 

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seek to expand our relationships with existing customers through sales of additional capacity, new customer applications and new Apigee products. In Q4 15, sales to new customers increased our customer count to 205. In addition, in Q4 15 we expanded within 37 customers. We increasingly offer professional services through partners, enabling us to leverage our sales force across more customer opportunities and grow our product revenue despite a decrease in professional services revenue.

We continue to invest in research and development to improve our products’ performance, to meet customer needs and to differentiate our products. During Q4 15, Apigee launched Edge SMB, a new API management packaging of the company’s leading Apigee Edge API platform designed for the requirements of small and mid-sized businesses (SMBs). In addition, Apigee launched Microgateway. Apigee Microgateway is a hybrid deployment feature for Apigee Edge that allows customers to securely, quickly and easily bridge their on-premises servers with the Apigee cloud. Also in Q4 15, we launched the beta test version of Apigee API Health, an API monitoring service built to globally measure and analyze the success of API calls, helping enable quick, reliable API experience for Apigee customers.

Guidance:

As of September 9, 2015, Apigee is giving initial guidance for its first quarter fiscal 2016 as well as for the full fiscal year 2016.

First Quarter Fiscal 2016 Guidance:

 

    Total revenue is expected to be in the range of $19.4 million to $20.0 million.

 

    Non-GAAP operating loss is expected to be in the range of $11.7 million to $12.4 million.

 

    Non-GAAP net loss per share is expected to be in the range of $0.40 to $0.42 based on approximately 29.5 million GAAP weighted-average shares outstanding.

 

    Gross billings are expected to be in the range of $21.2 million to $22.0 million.

Full Year Fiscal 2016 Guidance:

 

    Total revenue is expected to be in the range of $86.0 million to $91.0 million.

 

    Total license revenue is expected to be in the range of $24.0 million to $28.0 million.

 

    Non-GAAP operating loss is expected to be in the range of $40.0 million to $41.5 million.

 

    Non-GAAP net loss per share is expected to be in the range of $1.33 to $1.38 based on approximately 30.0 million GAAP weighted-average shares outstanding.

 

    Gross billings are expected to be in the range of $103 million to $109 million.

 

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Conference Call Details:

 

    What: Results of Apigee Corporation (APIC) fourth quarter and full fiscal year 2015 ended July 31, 2015.

 

    When: Wednesday, September 9, 2015 at 2 pm PT (5 pm ET).

 

    Dial in: To access the call in the United States, please dial (877) 407-4018, and for international callers please dial (201) 689-8471. Callers may provide confirmation number 13617484 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://investors.apigee.com (live and replay)

 

    Replay: A replay of the call will be available via telephone for seven days, beginning two hours after the call. To listen to the telephone replay in the United States, please dial (877) 870-5176, and for international callers please dial (858) 384-5517 and enter access code 13617484.

About Apigee

Apigee® (NASDAQ: APIC) provides an intelligent API platform for digital business. Many of the world’s largest organizations select Apigee to enable their digital business, including 23 of the Fortune 100, six of the top 10 Global 2000 retail companies, and five of the top 10 global telecommunications companies. Apigee customers include global enterprises such as Walgreens, Burberry, Morningstar, eBay, and First Data. Apigee is headquartered in San Jose, California and has over 400 employees worldwide.

Forward-Looking Statements

This press release contains forward-looking statements, including statements regarding Apigee’s anticipated growth and momentum and trends in its business and markets; future expense rate; market position; revenue and billings growth resulting from new customer wins, expansion sales within customers, partnerships and new product sales; expansion in direct and partner-generated sales capacity; growth in subscription and support revenue and increase in cloud deployments; long-term financial model; improvements in renewal rates; investment in research and development and sales and marketing and expected benefits therefrom; declining research and development and sales and marketing expenses as a percent of revenue; improvements in operating leverage, cloud platform efficiency, gross margin, operating margin and cash flows; timing of becoming cash flow positive; and its forecasted total revenue, license revenue, gross billings, non-GAAP operating loss and non-GAAP net loss per share for the fiscal first quarter and fiscal year 2016. Words such as “expect,” “will,” “believes,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on current expectations and are subject to inherent uncertainties, risks, and changes in circumstances that are difficult or impossible to predict. Consequently, you should not rely on these forward-looking statements. Actual outcomes and results may differ materially from those contemplated by these forward-looking statements as a result of such uncertainties,

 

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risks, and changes in circumstances, including without limitation risks and uncertainties related to Apigee’s limited operating history and its experience developing and introducing new products; risks associated with its history of losses and its expectation of incurring losses for the foreseeable future; risks associated with the potential significant fluctuation of its future quarterly results; risks associated with the seasonality of its business and variance in quarterly bookings, license revenue and cash flows from operations; risks associated with the effective management of its growth; risks associated with the role its strategic relationships with third parties plays in its growth; risks associated with market acceptance of its platform and Edge product; risks associated with Apigee’s ability to meet its customers’ needs for infrastructure capacity and the quality of its software, support and services; risks associated with Apigee’s ability to obtain renewals from current customers; and risks associated with its revenue mix.

The foregoing list of factors is not exclusive. Additional risks and uncertainties that could affect Apigee’s financial and operating results are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in Apigee’s Quarterly Report on Form 10-Q filed with the SEC on June 11, 2015. Apigee’s SEC filings are available on the Investor Relations section of the Company’s website at http://investors.apigee.com and on the SEC’s website at www.sec.gov. Apigee disclaims any obligation to update the forward-looking statements provided to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based.

Non-GAAP Financial Measures

Apigee provides the following non-GAAP financial measures in this release and in the earnings call referencing this press release: gross billings, gross product billings, non-GAAP license gross profit, non-GAAP gross margin, non-GAAP operating expense, non-GAAP operating loss, non-GAAP net loss, and non-GAAP net loss per share. These non-GAAP items are key measures used by our management to understand and evaluate our operating performance and trends. In particular, because these measures exclude certain non-cash expenses, they can provide useful measures for period-to-period comparisons of our business.

Apigee uses these non-GAAP financial measures internally in analyzing its operating results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating its ongoing operational performance. Apigee believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends.

 

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Non-GAAP financial measures should not be considered in isolation from, or as substitutes for, their most directly comparable financial measure prepared in accordance with GAAP. A reconciliation of the historical non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release. Investors are encouraged to review the reconciliation of these historical non-GAAP financial measures to their most directly comparable GAAP financial measures.

We calculate non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP sales and marketing expenses, non-GAAP research and development expenses, non-GAAP general and administrative expenses, non-GAAP operating loss and non-GAAP net loss as the respective GAAP balances, adjusted for: (1) stock-based compensation and (2) the amortization of intangible assets. Except with respect to Q4 2015, non-GAAP net loss per share is calculated as non-GAAP net loss divided by the non-GAAP weighted average shares outstanding that are adjusted to assume the conversion of outstanding preferred shares to common shares as of the beginning of the period. For Q4 2015, non-GAAP net loss per share is calculated as non-GAAP net loss divided by GAAP weighted average shares outstanding.

We define gross billings as our total revenue plus the change in our deferred revenue in a period. We define gross product billings as our total product revenue plus the change in our license, subscription and support deferred revenue in a period. Gross billings and gross product billings in any period consists of sales to new customers plus renewals and additional sales to existing customers. Our management uses gross billings and gross product billings as a performance measurement because we generally bill our customers at the time of sale of our solutions and recognize revenue either upon delivery or ratably over subsequent periods, and a portion of our revenue may be recognized over a period of more than 12 months. We believe that gross billings and gross product billings provide valuable insight into the sales of our solutions and the performance of our business.

With respect to Apigee’s outlook under “First Quarter Fiscal 2016 Guidance” and “Full Year Fiscal 2016 Guidance” above, Apigee has not reconciled its expectations regarding non-GAAP loss from operations to GAAP loss from operations, nor reconciled non-GAAP net loss per share to GAAP net loss per share, because stock-based compensation expenses cannot be reasonably predicted and calculated. Accordingly, reconciliation is not available without unreasonable effort.

 

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Investor Relations Contact:

Kevin Faulkner

kfaulkner@apigee.com

1-408-816-1658

Media Contact:

press@apigee.com

Apigee Corporation

Consolidated Balance Sheets

(in thousands)

 

     July 31,     July 31,  
     2015     2014  
     (Unaudited)        

Assets

    

Current assets

    

Cash and cash equivalents

   $ 89,562      $ 51,759   

Accounts receivable, net

     21,451        16,403   

Prepaid expenses and other current assets

     5,806        4,533   
  

 

 

   

 

 

 

Total current assets

     116,819        72,695   
  

 

 

   

 

 

 

Property and equipment, net

     3,144        3,474   

Goodwill

     14,744        14,744   

Intangible assets, net

     3,200        4,342   

Other assets

     799        367   
  

 

 

   

 

 

 

Total assets

   $ 138,706      $ 95,622   
  

 

 

   

 

 

 

Liabilities and stockholders’ equity

    

Current liabilities

    

Accounts payable

   $ 2,015      $ 2,850   

Accrued expenses and other current liabilities

     9,796        7,394   

Deferred revenue, current portion

     35,648        23,356   

Term debt, current portion

     2,079        2,778   
  

 

 

   

 

 

 

Total current liabilities

     49,538        36,378   
  

 

 

   

 

 

 

Non-current liabilities

    

Deferred revenue, non-current

     5,154        4,834   

Deferred rent, non-current

     1,550        1,617   

Other liabilities, non-current

     773        806   

Term debt, non-current

     1,787        2,465   
  

 

 

   

 

 

 

Total non-current liabilities

     9,264        9,722   
  

 

 

   

 

 

 

Total liabilities

     58,802        46,100   
  

 

 

   

 

 

 

Commitments and contingencies

    

Stockholders’ equity

    

Convertible preferred stock

     —          142   

Common stock

     29        30   

Additional paid-in capital

     276,099        195,221   

Accumulated deficit

     (196,224     (145,871
  

 

 

   

 

 

 

Total stockholders’ equity

     79,904        49,522   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 138,706      $ 95,622   
  

 

 

   

 

 

 

 

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Apigee Corporation

Consolidated Statements of Comprehensive Loss

(in thousands, except per share amounts)

 

     Three Months Ended
July 31,
    Year Ended July 31,  
     2015     2014     2015     2014  
     (Unaudited)     (Unaudited)  

Revenue

        

License

   $ 5,538      $ 4,106      $ 20,757      $ 11,411   

Subscription and support

     9,007        5,543        30,865        20,237   

Professional services and other

     4,157        5,248        16,985        21,054   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     18,702        14,897        68,607        52,702   

Cost of revenue

        

License

     128        136        514        366   

Subscription and support

     2,887        2,231        11,062        11,911   

Professional services and other

     3,268        3,986        13,415        15,431   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of revenue

     6,283        6,353        24,991        27,708   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     12,419        8,544        43,616        24,994   

Operating expenses

        

Research and development

     8,435        6,892        30,387        22,273   

Sales and marketing

     12,937        13,002        49,250        47,029   

General and administrative

     3,450        4,291        13,453        14,415   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     24,822        24,185        93,090        83,717   
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss from operations

     (12,403     (15,641     (49,474     (58,723

Other income (expense), net

     (69     202        (452     (1,678
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss before provision for income taxes

     (12,472     (15,439     (49,926     (60,401

Provision for income taxes

     84        127        427        392   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss and comprehensive loss

   $ (12,556   $ (15,566   $ (50,353   $ (60,793
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss per share:

        

Basic and diluted

   $ (0.43   $ (4.18   $ (4.73   $ (17.81
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average shares outstanding used in calculating net loss per share:

        

Basic and diluted

     29,313        3,725        10,651        3,413   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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Apigee Corporation

Consolidated Statements of Cash Flows

(in thousands)

 

     Three Months Ended
July 31,
    Year Ended
July 31,
 
     2015     2014     2015     2014  
     (Unaudited)     (Unaudited)  

Cash flows from operating activities

        

Net loss

   $ (12,556   $ (15,566   $ (50,353   $ (60,793

Adjustments to reconcile net loss to net cash used in operating activities

        

Depreciation and amortization

     627        674        2,436        2,104   

Provision for doubtful accounts

     4        63        42        150   

Amortization of debt discount

     8        7        46        24   

Issuances and changes in fair value of common stock warrants

     —          —          —          1,584   

Deferred income taxes

     —          (84     —          (84

Stock-based compensation expense

     1,182        1,265        3,451        2,726   

Loss on disposal of fixed assets

     10        39        10        39   

Loss on lease abandonment

     —          —          —          75   

Changes in operating assets and liabilities

        

Accounts receivable

     (5,363     (1,991     (5,090     (9,671

Prepaid expenses and other assets

     (1,771     19        (1,733     (1,173

Accounts payable

     433        1,012        (996     1,034   

Accrued expenses, other liabilities and deferred rent

     1,131        (508     2,209        2,694   

Deferred revenue

     2,422        7,069        12,611        11,024   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in operating activities

     (13,873     (8,001     (37,367     (50,267
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from investing activities

        

Purchase of property and equipment

     (131     (58     (966     (2,539

Proceeds from the sale of property and equipment

     —          4        —          4   

Acquisitions, net of cash acquired

     —          —          —          449   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (131     (54     (966     (2,086
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from financing activities

        

Proceeds from issuance of debt, net of issuance costs

     —          —          4,000        6,500   

Repayments of debt obligations

     (524     (5,600     (5,382     (6,961

Proceeds from initial public offering, net of offering costs

     (1,172     —          77,092        —     

Cash paid for fractional shares

     (8     —          (8     —     

Proceeds from issuance of convertible preferred stock, net of issuance costs

     —          45        —          59,874   

Proceeds from exercise of stock options, net of taxes paid

     25        221        434        456   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by financing activities

     (1,679     (5,334     76,136        59,869   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     (15,683     (13,389     37,803        7,516   

Cash and cash equivalents

        

Beginning of period

     105,245        65,148        51,759        44,243   
  

 

 

   

 

 

   

 

 

   

 

 

 

End of period

     89,562        51,759        89,562        51,759   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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Apigee Corporation

Reconciliation of GAAP to Non-GAAP Financial Measures

(in thousands, except per share amounts)

 

     Three Months Ended July 31,     Year Ended July 31,  
     2015     2014     2015     2014  

Gross billings

        

Total revenue

   $ 18,702      $ 14,897      $ 68,607      $ 52,702   

Total deferred revenue, end of period

     40,802        28,190        40,802        28,190   

Less: Total deferred revenue, beginning of period

     (38,379     (21,122     (28,190     (17,124
  

 

 

   

 

 

   

 

 

   

 

 

 

Total change in deferred revenue

     2,423        7,068        12,612        11,066   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross billings

   $ 21,125      $ 21,965      $ 81,219      $ 63,768   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross product billings

        

License

   $ 5,538      $ 4,106      $ 20,757        11,411   

Subscription and support

     9,007        5,543        30,865        20,237   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total product revenue

     14,545        9,649        51,622        31,648   

Total license, subscription and support deferred revenue, end of period

     36,638        24,848        36,638        24,848   

Less: Total license, subscription and support deferred revenue, beginning of period

     (34,749     (17,747     (24,848     (12,503
  

 

 

   

 

 

   

 

 

   

 

 

 

Total change in license, subscription and support deferred revenue

     1,889        7,101        11,790        12,345   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross product billings

   $ 16,434      $ 16,750      $ 63,412      $ 43,993   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP gross margin

        

Gross margin

     66.4     57.4     63.6     47.4

Add: Stock-based compensation expense

     0.5     0.3     0.4     0.3

Add: Amortization of intangible assets

     1.2     1.6     1.3     1.2
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP gross margin

     68.1     59.3     65.3     48.9
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP license gross profit:

        

License gross profit

   $ 5,410      $ 3,970      $ 20,243      $ 11,045   

License gross margin

     97.7     96.7     97.5     96.8

Add: Amortization of intangible assets

     114        121        454        306   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP license gross profit

   $ 5,524      $ 4,091      $ 20,697      $ 11,351   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP license gross margin

     99.7     99.6     99.7     99.5
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP subscription and support gross profit:

        

Subscription and support gross profit

   $ 6,120      $ 3,312      $ 19,803      $ 8,326   

Subscription and support gross margin

     67.9     59.8     64.2     41.1

Add: Stock-based compensation expense

     23        7        44        24   

Add: Amortization of intangible assets

     113        120        454        305   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP subscription and support gross profit

   $ 6,256      $ 3,439      $ 20,301      $ 8,655   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP subscription and support gross margin

     69.5     62.0     65.8     42.8
  

 

 

   

 

 

   

 

 

   

 

 

 

 

10


     Three Months Ended July 31,     Year Ended July 31,  
     2015     2014     2015     2014  

Non-GAAP professional services and other gross profit:

        

Professional services and other gross profit

   $ 889      $ 1,262      $ 3,570      $ 5,623   

Professional services and other gross margin

     21.4     24.0     21.0     26.7

Add: Stock-based compensation expense

     78        44        223        133   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP professional services and other gross profit

   $ 967      $ 1,306      $ 3,793      $ 5,756   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP professional services and other margin

     23.3     24.9     22.3     27.3
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP research and development expense:

        

GAAP research and development expense

   $ 8,435      $ 6,892      $ 30,387      $ 22,273   

Less: Stock-based compensation expense

     (436     (181 )      (1,195 )      (490

Less: Amortization of intangible assets

     (44     (44 )      (176     (176
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP research and development expense

   $ 7,955      $ 6,667      $ 29,016      $ 21,607   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP sales and marketing expense:

        

GAAP sales and marketing expense

   $ 12,937      $ 13,002      $ 49,250      $ 47,029   

Less: Stock-based compensation expense

     (285     (829 )      (777 )      (1,090

Less: Amortization of intangible assets

     —          (38     (58 )      (93
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP sales and marketing expense

   $ 12,652      $ 12,135      $ 48,415      $ 45,846   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP general and administrative expense:

        

GAAP general and administrative expense

   $ 3,450      $ 4,291      $ 13,453      $ 14,415   

Less : Stock-based compensation expense

     (360     (204 )      (1,212 )      (989
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP general and administrative expense

   $ 3,090      $ 4,087      $ 12,241      $ 13,426   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP operating loss:

        

Operating loss

   $ (12,403   $ (15,641   $ (49,474   $ (58,723

Add: Stock-based compensation expense

     1,182        1,265        3,451        2,726   

Add: Amortization of intangible assets

     271        323        1,142        880   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP operating loss

   $ (10,950   $ (14,053   $ (44,881   $ (55,117
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income (loss):

        

Net loss

   $ (12,556   $ (15,566 )    $ (50,353 )    $ (60,793

Add: Stock-based compensation expense

     1,182        1,265        3,451        2,726   

Add: Amortization of intangible assets

     271        323        1,142        880   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income (loss)

   $ (11,103 )    $ (13,978 )    $ (45,760 )    $ (57,187
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income (loss) per share:

        

GAAP net loss per share

   $ (0.43   $ (4.18   $ (4.73   $ (17.81

Non-GAAP adjustments to net loss

     0.05        0.43        0.43        1.06   

Non-GAAP adjustment to weighted average shares used in calculating net loss per share

     —          3.15        2.49        13.99   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income (loss) per share

   $ (0.38   $ (0.60   $ (1.81   $ (2.76
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP weighted average shares outstanding:

        

Weighted-average shares outstanding used in calculating net loss per share, basic and diluted

     29,313        3,725        10,651        3,413   

Add: Conversion of preferred convertible stock

     —          19,695        14,665        17,315   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP weighted average shares outstanding

     29,313        23,420        25,316        20,728   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

11