Attached files
| file | filename |
|---|---|
| 8-K - 8-K - INSTRUCTURE INC | inst-8k_20180212.htm |
Exhibit 99.1
Instructure Reports Fourth Quarter and Full Year 2017 Financial Results
Total Full Year 2017 Revenue of $158.8 Million, Up 43% Year-Over-Year
SALT LAKE CITY (February 12, 2018) – Instructure, Inc. (NYSE: INST), a leading software-as-a-service (SaaS) technology company that makes software that makes people smarter, today announced its financial results for the fourth quarter and full year ended December 31, 2017.
“We had a strong finish to 2017, delivering 39% revenue growth in the fourth quarter and 43% growth for the year,” said Josh Coates, CEO at Instructure. “During the year we further drove innovation with the introduction of new modules for both Canvas and Bridge. Additionally, we made our first product acquisition, Practice, a video microlearning solution that makes it easy to learn and improve through assessment and coaching. We are excited about the tremendous opportunities we see in the education and corporate learning markets in 2018 and beyond.”
|
Fourth Quarter and Full Year Financial Summary |
|
|||||||||||||||
|
(in thousands, except per share data) |
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|||||||||||||||
|
|
|
Three Months Ended December 31, |
|
|
Year Ended Ended December 31, |
|
||||||||||
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
||||
|
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
|
|
|
|||
|
Revenue |
|
$ |
43,835 |
|
|
$ |
31,546 |
|
|
$ |
158,806 |
|
|
$ |
110,880 |
|
|
Gross Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
|
69.7 |
% |
|
|
71.1 |
% |
|
|
70.8 |
% |
|
|
70.5 |
% |
|
Non-GAAP(1) |
|
|
70.9 |
% |
|
|
71.8 |
% |
|
|
71.7 |
% |
|
|
71.3 |
% |
|
Operating Loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
|
(12,482 |
) |
|
|
(12,838 |
) |
|
|
(50,776 |
) |
|
|
(53,375 |
) |
|
Non-GAAP(1) |
|
|
(8,348 |
) |
|
|
(9,862 |
) |
|
|
(35,469 |
) |
|
|
(42,909 |
) |
|
Operating Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
|
-28.5 |
% |
|
|
-40.7 |
% |
|
|
-32.0 |
% |
|
|
-48.1 |
% |
|
Non-GAAP(1) |
|
|
-19.0 |
% |
|
|
-31.3 |
% |
|
|
-22.3 |
% |
|
|
-38.7 |
% |
|
Net loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
|
(11,722 |
) |
|
|
(12,922 |
) |
|
|
(49,822 |
) |
|
|
(53,568 |
) |
|
Non-GAAP(1) |
|
|
(8,167 |
) |
|
|
(9,956 |
) |
|
|
(34,996 |
) |
|
|
(43,164 |
) |
|
EPS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
$ |
(0.39 |
) |
|
$ |
(0.46 |
) |
|
$ |
(1.69 |
) |
|
$ |
(1.92 |
) |
|
Non-GAAP(1) |
|
$ |
(0.27 |
) |
|
$ |
(0.35 |
) |
|
$ |
(1.19 |
) |
|
$ |
(1.55 |
) |
(1) Non-GAAP financial measures exclude stock-based compensation, reversal of estimated accruals related to payroll taxes on secondary stock purchase transactions, amortization of acquisition related intangibles, the change in fair value of the warrant liability and the deferred income tax benefit.
Fourth Quarter 2017 Business Highlights
|
|
● |
Instructure continued to expand its customer base in the fourth quarter. A few highlights include: |
|
|
o |
U.S. Higher Education and K-12 Schools – Within the U.S. higher education market, Canvas was selected by the University of Wisconsin System for their more than 120,000 students across 26 campuses. With the addition of Florida A&M and Florida International University this quarter, all students in the State University System of Florida will use Canvas as their LMS. Central Bucks School District, the third largest school district in Pennsylvania, also chose Canvas to serve their K-12 students. |
|
|
o |
International – Canvas was chosen by the University of Sussex for their 18,000 learners and France’s INSEAD, one of the world’s leading and largest graduate business schools, selected Canvas for their global students, faculty and executives participating in their executive education programs. Additionally, SUNET, the organization responsible for Sweden’s University Computer Network, selected Canvas as a preferred supplier for their member schools. Already, 12 universities in Sweden, representing almost 80,000 students, have signed up for Canvas. |
Business Outlook
Today, Instructure issued financial guidance for the first quarter and full year 2018. The financial guidance discussed below is on a non-GAAP basis, except for revenue, and excludes stock-based compensation expense, reversal of payroll tax expense on secondary stock purchase transactions, amortization of acquisition related intangibles, the change in fair value of the warrant liability, and the deferred income tax benefit (see tables below that reconcile these non-GAAP financial measures to the related GAAP measures). On January 1, 2018, Instructure adopted Accounting Standards Codification (ASC) 606 “Revenue from Contracts with Customers” using the full retrospective transition method. The 2018 guidance below includes the expected impact of the adoption of the new accounting standard (see tables below that disclose the 2017 quarterly results as if reported under ASC 606).
For the first quarter ending March 31, 2018, Instructure expects revenue of approximately $46.8 million to $47.4 million, a non-GAAP net loss of ($7.4) million to ($6.8) million, and non-GAAP net loss per common share of ($0.24) to ($0.22).
For the full year ending December 31, 2018, Instructure expects revenue of approximately $203.5 million to $209.5 million, a non-GAAP net loss of ($32.3) million to ($30.3) million, and non-GAAP net loss per common share of ($1.03) to ($0.97).
Conference Call Details:
Instructure will discuss its fourth quarter and full year 2017 results today, February 12, 2018, via teleconference at 3:00 p.m. Mountain Time / 5:00 p.m. Eastern Time. The call may be accessed at (877) 681-3372, or outside the U.S. at (719) 325-2249, conference ID 9922149.
The live webcast of the call can be accessed at the Instructure Investor Relations website at ir.instructure.com. A replay of the call will be available at the same web address approximately two hours following the conclusion of the live event. You may register for the live webcast at bit.ly/INST_Q42017EarningsCall.
Non-GAAP Financial Measures
In this press release and related conference call, Instructure’s non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss, non-GAAP net loss per share and 12-month billings are not presented in accordance with GAAP and are not intended to be used in lieu of GAAP presentations of results of operations.
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 to determine 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. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of our 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. Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics.
Non-GAAP measures exclude stock-based compensation, payroll taxes related to secondary stock purchase transactions or the reversal of such expense due to the retirement of the liability, amortization of acquisition related intangibles, the change in fair value of the warrant liability, and the deferred income tax benefit. We believe investors may want to exclude the effects of these items in order to compare our financial performance between time periods:
|
|
● |
Stock-based compensation - Although stock-based compensation is an important aspect of the compensation of our employees and executives, management believes it is useful to exclude stock-based compensation in order to better understand the long-term performance of our core business. Unlike cash compensation, the value of equity awards is determined using a complex formula that incorporates factors, such as market volatility and forfeiture rates that are beyond our control. |
|
|
● |
Reversal of estimated accruals related to payroll taxes on secondary stock purchase transactions – Prior to our IPO, operating expenses included employer payroll tax-related items on employee sales of securities to investors. The amount of employer payroll tax-related items on these transactions was dependent on the fair market value of our stock. Beginning in the second quarter of 2016, operating expenses included the reversal of such payroll tax expense due to the reduction of the estimated liability, which will continue to occur in the second quarter of each year. |
|
|
● |
Amortization of acquisition related intangibles - Expense for the amortization of acquisition related intangibles is a non-cash item, and we believe that the exclusion of this expense provides for a useful comparison of our operating results to prior periods. |
|
|
● |
Change in fair value of the warrant liability - Under GAAP, we are required to record mark-to-market adjustments for the change in fair value of the liability for warrants issued in connection with term debt and our credit facility. This expense or gain is excluded from management's assessment of our operating performance because management believes that these non-cash items are not indicative of ongoing operating performance. |
|
|
● |
Deferred income tax benefit - The deferred income tax benefit is a non-cash item created by the difference in the carrying amount and tax basis of the assets and liabilities acquired. This taxable temporary difference resulted in the recognition of a $0.6 million deferred tax liability which was recorded as an adjustment to goodwill on the consolidated balance sheet as of December 31, 2017. The creation of the deferred tax liability represents a source of future taxable income which supports the realization of a portion of the income tax benefit associated with historical net operating losses. The deferred income tax benefit is a non-cash item that is unique to the business combination, and we believe the exclusion of this deferred tax benefit provides for a useful comparison of our operating results to prior periods and our peer companies. |
This press release contains, and statements made during the above referenced conference call will contain, “forward-looking” statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the company’s financial guidance for the first quarter of 2018 and for the full year ending December 31, 2018, the company’s growth, customer demand and application adoption, the company's research and development efforts and future application releases, and the company’s expectations regarding future revenue, expenses, cash flows and net income or loss. These statements are not guarantees of future performance, but are based on management’s expectations as of the date of this press release and assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements. Important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include the following: risks associated with anticipated growth in Instructure’s addressable market; competitive factors, including changes in the competitive environment, pricing changes, sales cycle time and increased competition; Instructure’s ability to build and expand its sales efforts; general economic and industry conditions; new application introductions and Instructure’s ability to develop and deliver innovative applications and features; Instructure's ability to provide high-quality service and support offerings; risks associated with international operations; and macroeconomic conditions. These and other important risk factors are described more fully in the Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, which was filed with the Securities and Exchange Commission (the “SEC”) on November 1, 2017, and other documents filed with the SEC and could cause actual results to vary from expectations. All information provided in this press release and in the conference call is as of the date hereof and Instructure undertakes no duty to update this information except as required by law.
About Instructure
Instructure, Inc. is a leading software-as-a-service (SaaS) technology company that makes software that makes people smarter. With a vision to help maximize the potential of people through technology, Instructure created Canvas, Gauge, Arc and Bridge to enable organizations everywhere to easily develop, deliver and manage engaging face-to-face and online learning experiences. To date, Instructure has connected millions of instructors and learners at more than 3,000 educational institutions and corporations throughout the world. Learn more about Canvas for higher ed and K-12, and Bridge for the corporate market at www.Instructure.com.
Contacts:
Keaton Godfrey
Instructure
(866) 574-3127
kgodfrey@instructure.com
Becky Frost
Instructure
(801) 869-5017
becky@instructure.com
Source: Instructure
|
INSTRUCTURE, INC. |
|
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|
CONSOLIDATED BALANCE SHEETS |
|
|||||||
|
(in thousands) |
|
|||||||
|
|
|
December 31, 2017 |
|
|
December 31, 2016 |
|
||
|
|
|
(unaudited) |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
35,693 |
|
|
$ |
44,539 |
|
|
Short term marketable securities |
|
|
5,697 |
|
|
|
23,895 |
|
|
Accounts receivable—net of allowances of $318 and $241 at December 31, 2017 and 2016, respectively |
|
|
30,797 |
|
|
|
18,072 |
|
|
Prepaid expenses |
|
|
11,492 |
|
|
|
5,434 |
|
|
Other current assets |
|
|
2,419 |
|
|
|
936 |
|
|
Total current assets |
|
|
86,098 |
|
|
|
92,876 |
|
|
Property and equipment, net |
|
|
23,926 |
|
|
|
14,733 |
|
|
Goodwill |
|
|
12,354 |
|
|
|
989 |
|
|
Intangible assets, net |
|
|
9,048 |
|
|
|
760 |
|
|
Noncurrent prepaid expenses |
|
|
2,939 |
|
|
|
984 |
|
|
Other assets |
|
|
1,045 |
|
|
|
994 |
|
|
Total assets |
|
$ |
135,410 |
|
|
$ |
111,336 |
|
|
Liabilities and stockholders’ equity |
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
2,892 |
|
|
$ |
5,374 |
|
|
Accrued liabilities |
|
|
13,702 |
|
|
|
10,905 |
|
|
Deferred rent |
|
|
936 |
|
|
|
773 |
|
|
Deferred revenue |
|
|
99,086 |
|
|
|
72,747 |
|
|
Total current liabilities |
|
|
116,616 |
|
|
|
89,799 |
|
|
Deferred revenue, net of current portion |
|
|
3,950 |
|
|
|
3,144 |
|
|
Deferred rent, net of current portion |
|
|
9,201 |
|
|
|
8,372 |
|
|
Warrant liability |
|
|
122 |
|
|
|
25 |
|
|
Other long term liabilities |
|
|
1,164 |
|
|
|
32 |
|
|
Total liabilities |
|
|
131,053 |
|
|
|
101,372 |
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
|
Common stock |
|
|
3 |
|
|
|
3 |
|
|
Additional paid-in capital |
|
|
250,899 |
|
|
|
206,442 |
|
|
Accumulated other comprehensive income |
|
|
(1 |
) |
|
|
(12 |
) |
|
Accumulated deficit |
|
|
(246,544 |
) |
|
|
(196,469 |
) |
|
Total stockholders’ equity |
|
|
4,357 |
|
|
|
9,964 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
135,410 |
|
|
$ |
111,336 |
|
|
INSTRUCTURE, INC. |
|
|||||||||||||||
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CONSOLIDATED STATEMENTS OF OPERATIONS |
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|||||||||||||||
|
(in thousands, except per share data) |
|
|||||||||||||||
|
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
||||||||||
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
||||
|
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
|
|
|
|||
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription and support |
|
$ |
39,335 |
|
|
$ |
28,308 |
|
|
$ |
139,925 |
|
|
$ |
97,115 |
|
|
Professional services and other |
|
|
4,500 |
|
|
|
3,238 |
|
|
|
18,881 |
|
|
|
13,765 |
|
|
Total Net revenue |
|
|
43,835 |
|
|
|
31,546 |
|
|
|
158,806 |
|
|
|
110,880 |
|
|
Cost of Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription and support |
|
|
10,001 |
|
|
|
6,917 |
|
|
|
34,351 |
|
|
|
24,252 |
|
|
Professional services and other |
|
|
3,297 |
|
|
|
2,210 |
|
|
|
12,026 |
|
|
|
8,497 |
|
|
Total cost of revenue |
|
|
13,298 |
|
|
|
9,127 |
|
|
|
46,377 |
|
|
|
32,749 |
|
|
Gross profit |
|
|
30,537 |
|
|
|
22,419 |
|
|
|
112,429 |
|
|
|
78,131 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
|
21,287 |
|
|
|
18,002 |
|
|
|
83,716 |
|
|
|
69,991 |
|
|
Research and development |
|
|
13,477 |
|
|
|
10,141 |
|
|
|
48,293 |
|
|
|
35,973 |
|
|
General and administrative |
|
|
8,255 |
|
|
|
7,114 |
|
|
|
31,196 |
|
|
|
25,542 |
|
|
Total operating expenses |
|
|
43,019 |
|
|
|
35,257 |
|
|
|
163,205 |
|
|
|
131,506 |
|
|
Loss from operations |
|
|
(12,482 |
) |
|
|
(12,838 |
) |
|
|
(50,776 |
) |
|
|
(53,375 |
) |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
162 |
|
|
|
116 |
|
|
|
361 |
|
|
|
352 |
|
|
Interest expense |
|
|
(37 |
) |
|
|
(33 |
) |
|
|
(55 |
) |
|
|
(87 |
) |
|
Change in fair value of warrant liability |
|
|
1 |
|
|
|
10 |
|
|
|
(97 |
) |
|
|
62 |
|
|
Other income (expense), net |
|
|
36 |
|
|
|
(119 |
) |
|
|
354 |
|
|
|
(353 |
) |
|
Total other income (expense) |
|
|
162 |
|
|
|
(26 |
) |
|
|
563 |
|
|
|
(26 |
) |
|
Loss before income taxes |
|
|
(12,320 |
) |
|
|
(12,864 |
) |
|
|
(50,213 |
) |
|
|
(53,401 |
) |
|
Income tax expense |
|
|
598 |
|
|
|
(58 |
) |
|
|
391 |
|
|
|
(167 |
) |
|
Net loss |
|
$ |
(11,722 |
) |
|
$ |
(12,922 |
) |
|
$ |
(49,822 |
) |
|
$ |
(53,568 |
) |
|
Net loss per common share, basic and diluted |
|
$ |
(0.39 |
) |
|
$ |
(0.46 |
) |
|
$ |
(1.69 |
) |
|
$ |
(1.92 |
) |
|
Weighted average shares used to compute net loss per share, basic and diluted |
|
|
30,237 |
|
|
|
28,348 |
|
|
|
29,401 |
|
|
|
27,838 |
|
|
INSTRUCTURE, INC. |
|
|||||||||||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
|||||||||||||||
|
(in thousands) |
|
|||||||||||||||
|
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
||||||||||
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
||||
|
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
|
|
|
|||
|
Operating Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(11,722 |
) |
|
$ |
(12,922 |
) |
|
$ |
(49,822 |
) |
|
$ |
(53,568 |
) |
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of property and equipment |
|
|
1,865 |
|
|
|
1,149 |
|
|
|
6,187 |
|
|
|
3,981 |
|
|
Amortization of intangible assets |
|
|
242 |
|
|
|
121 |
|
|
|
572 |
|
|
|
405 |
|
|
Amortization of deferred financing costs |
|
|
7 |
|
|
|
12 |
|
|
|
31 |
|
|
|
46 |
|
|
Change in fair value of warrant liability |
|
|
(1 |
) |
|
|
(10 |
) |
|
|
97 |
|
|
|
(62 |
) |
|
Stock-based compensation |
|
|
3,963 |
|
|
|
2,973 |
|
|
|
15,670 |
|
|
|
10,674 |
|
|
Other |
|
|
25 |
|
|
|
(28 |
) |
|
|
(17 |
) |
|
|
92 |
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable, net |
|
|
4,790 |
|
|
|
5,050 |
|
|
|
(12,830 |
) |
|
|
(8,837 |
) |
|
Prepaid expenses and other assets |
|
|
(7,370 |
) |
|
|
(1,667 |
) |
|
|
(9,599 |
) |
|
|
(818 |
) |
|
Accounts payable and accrued liabilities |
|
|
(7,456 |
) |
|
|
(571 |
) |
|
|
740 |
|
|
|
3,732 |
|
|
Deferred revenue |
|
|
(10,449 |
) |
|
|
(8,894 |
) |
|
|
26,882 |
|
|
|
23,566 |
|
|
Deferred rent |
|
|
1,055 |
|
|
|
(95 |
) |
|
|
992 |
|
|
|
(474 |
) |
|
Other liabilities |
|
|
— |
|
|
|
16 |
|
|
|
(32 |
) |
|
|
(345 |
) |
|
Net cash used in operating activities |
|
|
(25,051 |
) |
|
|
(14,866 |
) |
|
|
(21,129 |
) |
|
|
(21,608 |
) |
|
Investing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(4,920 |
) |
|
|
(2,099 |
) |
|
|
(15,750 |
) |
|
|
(7,021 |
) |
|
Purchases of intangible assets |
|
|
(9 |
) |
|
|
(410 |
) |
|
|
(310 |
) |
|
|
(721 |
) |
|
Proceeds from disposal of property and equipment |
|
|
26 |
|
|
|
40 |
|
|
|
76 |
|
|
|
63 |
|
|
Purchases of marketable securities |
|
|
(12,997 |
) |
|
|
(4,389 |
) |
|
|
(11,085 |
) |
|
|
(28,752 |
) |
|
Maturities of marketable securities |
|
|
15,400 |
|
|
|
4,800 |
|
|
|
29,300 |
|
|
|
5,125 |
|
|
Net cash provided by (used in) investing activities |
|
|
(2,500 |
) |
|
|
(2,058 |
) |
|
|
2,231 |
|
|
|
(31,306 |
) |
|
Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock from employee equity plans |
|
|
4,606 |
|
|
|
2,515 |
|
|
|
10,375 |
|
|
|
7,009 |
|
|
Shares repurchased for tax withholdings on vesting of restricted stock |
|
|
(78 |
) |
|
|
(27 |
) |
|
|
(292 |
) |
|
|
(27 |
) |
|
Payments of financing costs |
|
|
— |
|
|
|
— |
|
|
|
(31 |
) |
|
|
— |
|
|
Net cash provided by financing activities |
|
|
4,528 |
|
|
|
2,488 |
|
|
|
10,052 |
|
|
|
6,982 |
|
|
Net decrease in cash |
|
|
(23,023 |
) |
|
|
(14,436 |
) |
|
|
(8,846 |
) |
|
|
(45,932 |
) |
|
Cash, beginning of period |
|
|
58,716 |
|
|
|
58,975 |
|
|
|
44,539 |
|
|
|
90,471 |
|
|
Cash, end of period |
|
$ |
35,693 |
|
|
$ |
44,539 |
|
|
$ |
35,693 |
|
|
$ |
44,539 |
|
|
INSTRUCTURE, INC. |
|
||||||||||||||||||||||||
|
RECONCILIATION OF NON-GAAP GROSS MARGIN |
|
||||||||||||||||||||||||
|
(in thousands, except percentages) |
|
||||||||||||||||||||||||
|
(unaudited) |
|
||||||||||||||||||||||||
|
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
|||||||||||||||||||
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
|||||||||||||
|
GAAP gross profit |
|
$ |
30,537 |
|
|
$ |
22,419 |
|
|
$ |
112,429 |
|
|
$ |
78,131 |
|
|||||||||
|
Stock-based compensation |
|
|
408 |
|
|
|
240 |
|
|
|
1,358 |
|
|
|
962 |
|
|||||||||
|
Amortization of acquisition related intangibles |
|
|
135 |
|
|
|
— |
|
|
|
135 |
|
|
|
— |
|
|||||||||
|
Non-GAAP gross margin |
|
$ |
31,080 |
|
|
$ |
22,659 |
|
|
$ |
113,922 |
|
|
$ |
79,093 |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
GAAP gross margin % |
|
|
69.7 |
% |
|
|
71.1 |
% |
|
|
70.8 |
% |
|
|
70.5 |
% |
|||||||||
|
Non-GAAP gross margin % |
|
|
70.9 |
% |
|
|
71.8 |
% |
|
|
71.7 |
% |
|
|
71.3 |
% |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
INSTRUCTURE, INC. |
|
||||||||||||||||||||||||
|
RECONCILIATION OF NON-GAAP OPERATING LOSS |
|
||||||||||||||||||||||||
|
(in thousands, except percentages) |
|
||||||||||||||||||||||||
|
(unaudited) |
|
||||||||||||||||||||||||
|
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
|||||||||||||||||||
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
|||||||||||||
|
Loss from operations |
|
$ |
(12,482 |
) |
|
$ |
(12,838 |
) |
|
$ |
(50,776 |
) |
|
$ |
(53,375 |
) |
|||||||||
|
Stock-based compensation |
|
|
3,963 |
|
|
|
2,973 |
|
|
|
15,670 |
|
|
|
10,674 |
|
|||||||||
|
Reversal of payroll tax expense on secondary stock purchase transactions |
|
|
— |
|
|
|
— |
|
|
|
(534 |
) |
|
|
(217 |
) |
|||||||||
|
Amortization of acquisition related intangibles |
|
|
171 |
|
|
|
3 |
|
|
|
171 |
|
|
|
9 |
|
|||||||||
|
Non-GAAP operating loss |
|
$ |
(8,348 |
) |
|
$ |
(9,862 |
) |
|
$ |
(35,469 |
) |
|
$ |
(42,909 |
) |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
GAAP operating margin |
|
|
-28.5 |
% |
|
|
-40.7 |
% |
|
|
-32.0 |
% |
|
|
-48.1 |
% |
|||||||||
|
Non-GAAP operating margin |
|
|
-19.0 |
% |
|
|
-31.3 |
% |
|
|
-22.3 |
% |
|
|
-38.7 |
% |
|||||||||
|
INSTRUCTURE, INC. |
|
|||||||||||||||
|
RECONCILIATION OF NON-GAAP NET LOSS |
|
|||||||||||||||
|
(in thousands, except per share data) |
|
|||||||||||||||
|
(unaudited) |
|
|||||||||||||||
|
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
||||||||||
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
||||
|
Net Loss |
|
$ |
(11,722 |
) |
|
$ |
(12,922 |
) |
|
$ |
(49,822 |
) |
|
$ |
(53,568 |
) |
|
Stock-based compensation |
|
|
3,963 |
|
|
|
2,973 |
|
|
|
15,670 |
|
|
|
10,674 |
|
|
Reversal of payroll tax expense on secondary stock purchase transactions |
|
|
— |
|
|
|
— |
|
|
|
(534 |
) |
|
|
(217 |
) |
|
Amortization of acquisition related intangibles |
|
|
171 |
|
|
|
3 |
|
|
|
171 |
|
|
|
9 |
|
|
Deferred income tax benefit from business combination |
|
|
(578 |
) |
|
|
— |
|
|
|
(578 |
) |
|
|
— |
|
|
Change in fair value of warrant liability |
|
|
(1 |
) |
|
|
(10 |
) |
|
|
97 |
|
|
|
(62 |
) |
|
Non-GAAP net loss |
|
$ |
(8,167 |
) |
|
$ |
(9,956 |
) |
|
$ |
(34,996 |
) |
|
$ |
(43,164 |
) |
|
Non-GAAP net loss per common share, basic and diluted |
|
$ |
(0.27 |
) |
|
$ |
(0.35 |
) |
|
$ |
(1.19 |
) |
|
$ |
(1.55 |
) |
|
Weighted average common shares used in computing basic and diluted net loss per common share |
|
|
30,237 |
|
|
|
28,348 |
|
|
|
29,401 |
|
|
|
27,838 |
|
|
INSTRUCTURE, INC. |
|
|||||||||||||||||||||||||||
|
RECONCILIATION OF 12-MONTH BILLINGS |
|
|||||||||||||||||||||||||||
|
(in thousands) |
|
|||||||||||||||||||||||||||
|
(unaudited) |
|
|||||||||||||||||||||||||||
|
|
|
Trailing Twelve Months Ended December 31, |
|
|||||||||||||||||||||||||
|
|
|
2017 |
|
|
2016 |
|
||||||||||||||||||||||
|
Total net revenue |
|
$ |
158,806 |
|
|
$ |
110,880 |
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Current deferred revenue |
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Beginning balance |
|
|
72,747 |
|
|
|
49,384 |
|
||||||||||||||||||||
|
Ending balance |
|
|
99,086 |
|
|
|
72,747 |
|
||||||||||||||||||||
|
Net change in current deferred revenue |
|
|
26,339 |
|
|
|
23,363 |
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Long term deferred revenue |
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Beginning balance |
|
|
3,144 |
|
|
|
2,941 |
|
||||||||||||||||||||
|
Ending balance |
|
|
3,950 |
|
|
|
3,144 |
|
||||||||||||||||||||
|
Net change in long term deferred revenue |
|
|
806 |
|
|
|
203 |
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Total 12-month billings |
|
$ |
185,951 |
|
|
$ |
134,446 |
|
||||||||||||||||||||
|
INSTRUCTURE, INC. |
|
|||||||||||||||||||||||||||
|
RECONCILIATION OF NON-GAAP OPERATING EXPENSES |
|
|||||||||||||||||||||||||||
|
Three Months Ended December 31, 2017 |
|
|||||||||||||||||||||||||||
|
(in thousands) |
|
|||||||||||||||||||||||||||
|
(unaudited) |
|
|||||||||||||||||||||||||||
|
|
|
GAAP |
|
|
Stock-based Compensation Expense |
|
|
Reversal of Payroll Tax Associated with Equity Transactions |
|
|
Amortization of acquired intangibles |
|
|
NON-GAAP |
|
|||||||||||||
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Sales and marketing |
|
$ |
21,287 |
|
|
|
(926 |
) |
|
|
— |
|
|
|
(36 |
) |
|
$ |
20,325 |
|
||||||||
|
Research and development |
|
|
13,477 |
|
|
|
(1,648 |
) |
|
|
— |
|
|
|
— |
|
|
$ |
11,829 |
|
||||||||
|
General and administrative |
|
|
8,255 |
|
|
|
(981 |
) |
|
|
— |
|
|
|
— |
|
|
$ |
7,274 |
|
||||||||
|
Total operating expenses |
|
$ |
43,019 |
|
|
|
(3,555 |
) |
|
|
— |
|
|
|
(36 |
) |
|
$ |
39,428 |
|
||||||||
|
INSTRUCTURE, INC. |
|
|||||||||||||||||||
|
RECONCILIATION OF NON-GAAP OPERATING EXPENSES |
|
|||||||||||||||||||
|
Three Months Ended December 31, 2016 |
|
|||||||||||||||||||
|
(in thousands) |
|
|||||||||||||||||||
|
(unaudited) |
|
|||||||||||||||||||
|
|
|
GAAP |
|
|
Stock-based Compensation Expense |
|
|
Reversal of Payroll Tax Associated with Equity Transactions |
|
|
Amortization of acquired intangibles |
|
|
NON-GAAP |
|
|||||
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
$ |
18,002 |
|
|
|
(811 |
) |
|
|
— |
|
|
|
— |
|
|
$ |
17,191 |
|
|
Research and development |
|
|
10,141 |
|
|
|
(1,120 |
) |
|
|
— |
|
|
|
(3 |
) |
|
$ |
9,018 |
|
|
General and administrative |
|
|
7,114 |
|
|
|
(802 |
) |
|
|
— |
|
|
|
— |
|
|
$ |
6,312 |
|
|
Total operating expenses |
|
$ |
35,257 |
|
|
|
(2,733 |
) |
|
|
— |
|
|
|
(3 |
) |
|
$ |
32,521 |
|
|
INSTRUCTURE, INC. |
|
|||||||||||||||||||
|
RECONCILIATION OF NON-GAAP OPERATING EXPENSES |
|
|||||||||||||||||||
|
Year Ended December 31, 2017 |
|
|||||||||||||||||||
|
(in thousands) |
|
|||||||||||||||||||
|
(unaudited) |
|
|||||||||||||||||||
|
|
|
GAAP |
|
|
Stock-based Compensation Expense |
|
|
Reversal of Payroll Tax Associated with Equity Transactions |
|
|
Amortization of acquired intangibles |
|
|
NON-GAAP |
|
|||||
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
$ |
83,716 |
|
|
|
(4,331 |
) |
|
|
256 |
|
|
|
(36 |
) |
|
$ |
79,605 |
|
|
Research and development |
|
$ |
48,293 |
|
|
|
(6,023 |
) |
|
|
256 |
|
|
|
— |
|
|
|
42,526 |
|
|
General and administrative |
|
$ |
31,196 |
|
|
|
(3,958 |
) |
|
|
22 |
|
|
|
— |
|
|
|
27,260 |
|
|
Total operating expenses |
|
$ |
163,205 |
|
|
|
(14,312 |
) |
|
|
534 |
|
|
|
(36 |
) |
|
$ |
149,391 |
|
|
INSTRUCTURE, INC. |
|
|||||||||||||||||||
|
RECONCILIATION OF NON-GAAP OPERATING EXPENSES |
|
|||||||||||||||||||
|
Year Ended December 31, 2016 |
|
|||||||||||||||||||
|
(in thousands) |
|
|||||||||||||||||||
|
(unaudited) |
|
|||||||||||||||||||
|
|
|
GAAP |
|
|
Stock-based Compensation Expense |
|
|
Reversal of Payroll Tax Associated with Equity Transactions |
|
|
Amortization of acquired intangibles |
|
|
NON-GAAP |
|
|||||
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
$ |
69,991 |
|
|
|
(3,030 |
) |
|
|
57 |
|
|
|
— |
|
|
$ |
67,018 |
|
|
Research and development |
|
|
35,973 |
|
|
|
(3,862 |
) |
|
|
57 |
|
|
|
(9 |
) |
|
|
32,159 |
|
|
General and administrative |
|
|
25,542 |
|
|
|
(2,820 |
) |
|
|
103 |
|
|
|
— |
|
|
|
22,825 |
|
|
Total operating expenses |
|
$ |
131,506 |
|
|
|
(9,712 |
) |
|
|
217 |
|
|
|
(9 |
) |
|
$ |
122,002 |
|
|
INSTRUCTURE, INC. |
|
|||||||||||||||||||
|
As If Reported Under ASC 606 |
|
|||||||||||||||||||
|
(in thousands) |
|
|||||||||||||||||||
|
(unaudited) |
|
|||||||||||||||||||
|
|
|
Three Months Ended |
|
|
Full Year Ended |
|
||||||||||||||
|
|
|
Dec. 31, 2017 |
|
|
Sept. 30, 2017 |
|
|
June 30, 2017 |
|
|
March 31, 2017 |
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Dec. 31, 2017 |
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Consolidated Statements of Operations Data: |
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Revenue: |
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|
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Subscription and support |
|
$ |
40,551 |
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|
$ |
38,290 |
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|
$ |
33,713 |
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|
$ |
31,554 |
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|
$ |
144,108 |
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Professional services and other |
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|
4,176 |
|
|
|
4,937 |
|
|
|
4,835 |
|
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|
2,919 |
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|
16,867 |
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Total revenue |
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|
44,727 |
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|
43,227 |
|
|
|
38,548 |
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|
34,473 |
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|
160,975 |
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Cost of revenue: |
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|
|
|
|
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|
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|
|
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Professional services and other |
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3,303 |
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|
3,245 |
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|
3,089 |
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|
2,574 |
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|
12,211 |
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Operating expenses: |
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Sales and marketing |
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20,130 |
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21,397 |
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18,972 |
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18,227 |
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|
78,726 |
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Loss from operations |
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|
(10,411 |
) |
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|
(11,628 |
) |
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|
(10,161 |
) |
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(11,602 |
) |
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|
(43,802 |
) |
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Net loss |
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$ |
(9,679 |
) |
|
$ |
(11,412 |
) |
|
$ |
(10,202 |
) |
|
$ |
(11,555 |
) |
|
$ |
(42,848 |
) |
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INSTRUCTURE, INC. |
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RECONCILIATION OF NON-GAAP NET LOSS GUIDANCE |
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(in thousands) |
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(unaudited) |
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Three Months Ending March 31, |
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Full Year Ending December 31, |
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2018 |
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2018 |
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2018 |
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2018 |
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LOW |
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HIGH |
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LOW |
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HIGH |
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Net loss |
|
$ |
(13,010 |
) |
|
$ |
(12,410 |
) |
|
$ |
(58,120 |
) |
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$ |
(56,130 |
) |
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Stock-based compensation |
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4,900 |
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|
4,900 |
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|
24,350 |
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|
24,350 |
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Reversal of payroll tax expense on secondary stock purchase transactions |
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— |
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— |
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(1,200 |
) |
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|
(1,200 |
) |
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Amortization of acquisition related intangibles |
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|
680 |
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|
680 |
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2,550 |
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|
2,550 |
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Change in fair value of warrant liability |
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30 |
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|
30 |
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|
120 |
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|
120 |
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Non-GAAP net loss |
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$ |
(7,400 |
) |
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$ |
(6,800 |
) |
|
$ |
(32,300 |
) |
|
$ |
(30,310 |
) |
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INSTRUCTURE, INC. |
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RECONCILIATION OF NON-GAAP NET LOSS PER COMMON SHARE GUIDANCE |
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(unaudited) |
|
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|
Three Months Ending March 31, |
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Full Year Ending December 31, |
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2018 |
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2018 |
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2018 |
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2018 |
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LOW |
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HIGH |
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LOW |
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HIGH |
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Net loss per common share |
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$ |
(0.42 |
) |
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$ |
(0.40 |
) |
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$ |
(1.85 |
) |
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$ |
(1.79 |
) |
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Stock-based compensation |
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|
0.16 |
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|
0.16 |
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|
0.78 |
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|
|
0.78 |
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|
Reversal of payroll tax expense on secondary stock purchase transactions |
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|
— |
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|
|
— |
|
|
|
(0.04 |
) |
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|
(0.04 |
) |
|
Amortization of acquisition related intangibles |
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|
0.02 |
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|
|
0.02 |
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|
|
0.08 |
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|
|
0.08 |
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Change in fair value of warrant liability |
|
0.00 |
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|
0.00 |
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|
0.00 |
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|
0.00 |
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Non-GAAP net loss per common share, basic and diluted |
|
$ |
(0.24 |
) |
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$ |
(0.22 |
) |
|
$ |
(1.03 |
) |
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$ |
(0.97 |
) |
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Non-GAAP weighted average common shares used in computing basic and diluted net loss per common share (in thousands) |
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|
31,000 |
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|
31,000 |
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|
31,400 |
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|
31,400 |
|