Attached files
| file | filename |
|---|---|
| EX-31.1 - EX-31.1 - MICROSTRATEGY Inc | mstr-ex311_9.htm |
| EX-32.1 - EX-32.1 - MICROSTRATEGY Inc | mstr-ex321_7.htm |
| EX-31.2 - EX-31.2 - MICROSTRATEGY Inc | mstr-ex312_8.htm |
| EX-10.4 - EX-10.4 - MICROSTRATEGY Inc | mstr-ex104_67.htm |
| EX-10.3 - EX-10.3 - MICROSTRATEGY Inc | mstr-ex103_301.htm |
| 10-Q - 10-Q - MICROSTRATEGY Inc | mstr-10q_20180630.htm |
Exhibit 99.1
Contact:
ir@microstrategy.com
(703) 848-8600
Second Quarter 2018 Financial Results
TYSONS CORNER, Va., July 26, 2018 - MicroStrategy® Incorporated (Nasdaq: MSTR), a leading worldwide provider of enterprise analytics and mobility software, today announced financial results for the three-month period ended June 30, 2018 (the second quarter of its 2018 fiscal year).
MicroStrategy adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) and its subsequent amendments (“ASU 2014-09”), effective January 1, 2018, and has adjusted its prior period consolidated financial statements to reflect full retrospective adoption.
Second quarter 2018 revenues were $120.6 million versus $119.2 million for the second quarter of 2017, a 1.2% increase. Product licenses and subscription services revenues for the second quarter of 2018 were $26.9 million versus $26.1 million for the second quarter of 2017, a 3.1% increase. Product support revenues for the second quarter of 2018 were $73.7 million versus $70.8 million for the second quarter of 2017, a 4.1% increase. Other services revenues for the second quarter of 2018 were $20.1 million versus $22.4 million for the second quarter of 2017, a 10.4% decrease. Foreign currency effects had a favorable impact on revenues for the second quarter of 2018.
Operating expenses for the second quarter of 2018 were $97.4 million versus $80.8 million for the second quarter of 2017, a 20.5% increase, reflecting MicroStrategy’s previously announced strategy to seek to take greater advantage of the opportunities in the market by increasing its sales and marketing expenditures and increasing its research and development expenditures as it invests in its technology products and personnel. MicroStrategy did not capitalize any software development costs during the second quarter of 2018 or 2017.
Loss from operations for the second quarter of 2018 was $1.8 million versus income from operations of $14.1 million for the second quarter of 2017. Net income for the second quarter of 2018 was $4.8 million, or $0.42 per share on a diluted basis, as compared to net income of $10.0 million, or $0.86 per share on a diluted basis, for the second quarter of 2017. Contributing to net income for the second quarter of 2018 was $4.5 million in other income, net, comprised primarily of foreign currency transaction gains, and $3.2 million in interest income, net.
Non-GAAP income from operations, which excludes share-based compensation expense, was $1.6 million for the second quarter of 2018 versus $17.9 million for the second quarter of 2017. The tables at the end of this press release include a reconciliation of (loss) income from operations to non-GAAP income from operations for the three months ended June 30, 2018 and 2017. An explanation of this non-GAAP measure is also included under the heading “Non-GAAP Financial Measure” below.
As of June 30, 2018, MicroStrategy had cash and cash equivalents and short-term investments of $699.6 million, as compared to $675.2 million as of December 31, 2017, an increase of $24.4 million. As of June 30, 2018, MicroStrategy had 9.4 million shares of class A common stock and 2.0 million shares of class B common stock outstanding.
MicroStrategy uses its own software across the Company and has created an interactive dossier with quarterly financial performance data. Anyone can access the MSTR Financials dossier via a web browser, or by downloading the MicroStrategy Library™ app on an iOS or Android device. To download the native apps, visit MicroStrategy Library for iPad, MicroStrategy Library for iPhone, or MicroStrategy Library for Android tablet and smartphone.
MicroStrategy will be discussing its second quarter 2018 financial results on a conference call today beginning at approximately 5:00 p.m. EDT. To access the conference call, dial (844) 824-7425 (domestically) or (716) 220-9429 (internationally) and use conference ID 8369038. A live webcast and replay of the conference call will be available under the “Events” section on MicroStrategy’s investor relations website at http://ir.microstrategy.com/events.cfm. The replay will be available beginning approximately two hours after the call concludes until August 2, 2018 at (855) 859-2056 (domestically) or (404) 537-3406 (internationally) using the passcode 8369038. An archived webcast will also be available under the “Events” section on MicroStrategy’s investor relations website at http://ir.microstrategy.com/events.cfm.
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First in Governed Data Discovery, scoring a 4.22 (out of 5) |
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First in Agile, Centralized BI Provisioning, scoring a 4.37 |
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First in Decentralized Analytics, scoring a 4.19 |
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Second in Extranet Deployment, scoring a 4.16 |
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MicroStrategy introduced three new gateways with its MicroStrategy 10.11™ release that enable MicroStrategy users to easily visualize, analyze and distribute data using Microsoft Azure. Built in collaboration with Microsoft, these gateways establish integrations and workflows between the MicroStrategy 10™ platform and Azure data and analytics services. These gateways expand on MicroStrategy’s existing integrations with other Microsoft solutions, including Azure IoT, Machine Learning and Power BI. |
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MicroStrategy won a 2018 NetworkWorld Asia Information Management award in the Advanced Analytics Solution category. After a review of numerous analytics vendors in the market, MicroStrategy was selected the winner by a panel of Questex Media editors and regional CIOs, CISOs, IT directors, and data center heads representing organizations across a variety of industries. MicroStrategy, which secured the top spot for the only award related to analytics, was honored at the 7th annual NetworkWorld Asia Information Management Awards in Singapore. |
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MicroStrategy announced that Kasasa, an Austin, Texas-based fintech and martech provider, integrated MicroStrategy 10 into Insight, its BI platform, enabling an even higher performing analytics solution for its customers. In addition, MicroStrategy announced that Vibes, a leading mobile engagement platform for enterprises, integrated the MicroStrategy 10 platform into its new product, Advanced Analytics, a performance management solution. |
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MicroStrategy announced that The University of Auckland’s ICT Graduate School and the University of Colorado Denver School of Business are providing its students and faculty with free MicroStrategy software licenses, technical support and training through the MicroStrategy Academic Program. |
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Gartner, Critical Capabilities for Analytics and Business Intelligence Platforms, James Laurence Richardson, Joao Tapadinhas, et al., May 7, 2018. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. |
MicroStrategy is providing a supplemental financial measure for income from operations that excludes the impact of share-based compensation arrangements. This financial measure is not a measurement of financial performance under generally accepted accounting principles in the United States (“GAAP”) and, as a result, this financial measure may not be comparable to similarly titled measures of other companies. Management uses this non-GAAP financial measure internally to help understand, manage and evaluate business performance and to help make operating decisions. MicroStrategy believes that this non-GAAP financial measure is also useful to investors and analysts in comparing its performance across reporting periods on a consistent basis because it excludes a significant non-cash expense that MicroStrategy believes is not reflective of its general business performance. In addition, accounting for share-based compensation arrangements requires significant management judgment and the resulting expense could vary significantly in comparison to other companies. Therefore, MicroStrategy believes the use of this non-GAAP financial measure can also facilitate comparison of MicroStrategy’s operating results to those of its competitors.
About MicroStrategy Incorporated
MicroStrategy (Nasdaq: MSTR) is a worldwide leader in enterprise analytics and mobility software. A pioneer in the BI and analytics space, MicroStrategy delivers innovative software that empowers people to make better decisions and transform the way they do business. We provide our enterprise customers with world-class software and expert services so they can deploy unique intelligence applications. To learn more, visit MicroStrategy online, and follow us on LinkedIn, Twitter and Facebook.
MicroStrategy, MicroStrategy 10, MicroStrategy 10.11, and MicroStrategy Library are either trademarks or registered trademarks of MicroStrategy Incorporated in the United States and certain other countries. Other product and company names mentioned herein may be the trademarks of their respective owners.
This press release may include statements that may constitute “forward-looking statements,” including estimates of future business prospects or financial results and statements containing the words “believe,” “estimate,” “project,” “expect” or similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results of MicroStrategy Incorporated and its subsidiaries (collectively, the “Company”) to differ materially from the forward-looking statements. Factors that could contribute to such differences include: the extent and timing of market acceptance of MicroStrategy’s new offerings, including MicroStrategy 10.11; the Company’s ability to recognize revenue or deferred revenue through delivery of products or satisfactory performance of services; continued acceptance of the Company’s other products in the marketplace; fluctuations in tax benefits or provisions, including as a result of changes to U.S. federal tax laws; the timing of significant orders; delays in or the inability of the Company to develop or ship new products; competitive factors; general economic conditions, including economic uncertainty in the retail industry, in which the Company has a significant number of customers; currency fluctuations; and other risks detailed in the Company’s registration statements and periodic reports filed with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
MSTR-F
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
|
June 30, |
|
|
June 30, |
|
||||||||||
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
||||
|
|
|
(unaudited) |
|
|
(as adjusted, unaudited) |
|
|
(unaudited) |
|
|
(as adjusted, unaudited) |
|
||||
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product licenses |
|
$ |
19,292 |
|
|
$ |
17,728 |
|
|
$ |
36,593 |
|
|
$ |
40,374 |
|
|
Subscription services |
|
|
7,584 |
|
|
|
8,346 |
|
|
|
15,246 |
|
|
|
16,118 |
|
|
Total product licenses and subscription services |
|
|
26,876 |
|
|
|
26,074 |
|
|
|
51,839 |
|
|
|
56,492 |
|
|
Product support |
|
|
73,676 |
|
|
|
70,766 |
|
|
|
148,091 |
|
|
|
141,278 |
|
|
Other services |
|
|
20,050 |
|
|
|
22,380 |
|
|
|
43,639 |
|
|
|
43,682 |
|
|
Total revenues |
|
|
120,602 |
|
|
|
119,220 |
|
|
|
243,569 |
|
|
|
241,452 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product licenses |
|
|
1,667 |
|
|
|
1,747 |
|
|
|
3,878 |
|
|
|
3,419 |
|
|
Subscription services |
|
|
3,445 |
|
|
|
3,400 |
|
|
|
6,694 |
|
|
|
6,439 |
|
|
Total product licenses and subscription services |
|
|
5,112 |
|
|
|
5,147 |
|
|
|
10,572 |
|
|
|
9,858 |
|
|
Product support |
|
|
4,810 |
|
|
|
4,542 |
|
|
|
9,606 |
|
|
|
8,876 |
|
|
Other services |
|
|
15,118 |
|
|
|
14,686 |
|
|
|
30,047 |
|
|
|
28,773 |
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|
Total cost of revenues |
|
|
25,040 |
|
|
|
24,375 |
|
|
|
50,225 |
|
|
|
47,507 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
95,562 |
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|
|
94,845 |
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|
|
193,344 |
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|
|
193,945 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
|
50,978 |
|
|
|
41,626 |
|
|
|
102,313 |
|
|
|
81,208 |
|
|
Research and development |
|
|
25,082 |
|
|
|
19,561 |
|
|
|
48,642 |
|
|
|
37,987 |
|
|
General and administrative |
|
|
21,299 |
|
|
|
19,582 |
|
|
|
43,471 |
|
|
|
39,839 |
|
|
Total operating expenses |
|
|
97,359 |
|
|
|
80,769 |
|
|
|
194,426 |
|
|
|
159,034 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from operations |
|
|
(1,797 |
) |
|
|
14,076 |
|
|
|
(1,082 |
) |
|
|
34,911 |
|
|
Interest income, net |
|
|
3,223 |
|
|
|
1,163 |
|
|
|
5,257 |
|
|
|
2,000 |
|
|
Other income (expense), net |
|
|
4,461 |
|
|
|
(2,618 |
) |
|
|
2,867 |
|
|
|
(4,474 |
) |
|
Income before income taxes |
|
|
5,887 |
|
|
|
12,621 |
|
|
|
7,042 |
|
|
|
32,437 |
|
|
Provision for income taxes |
|
|
1,059 |
|
|
|
2,668 |
|
|
|
541 |
|
|
|
6,927 |
|
|
Net income |
|
$ |
4,828 |
|
|
$ |
9,953 |
|
|
$ |
6,501 |
|
|
$ |
25,510 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share (1): |
|
$ |
0.42 |
|
|
$ |
0.87 |
|
|
$ |
0.57 |
|
|
$ |
2.23 |
|
|
Weighted average shares outstanding used in computing basic earnings per share |
|
|
11,459 |
|
|
|
11,444 |
|
|
|
11,453 |
|
|
|
11,441 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share (1): |
|
$ |
0.42 |
|
|
$ |
0.86 |
|
|
$ |
0.57 |
|
|
$ |
2.20 |
|
|
Weighted average shares outstanding used in computing diluted earnings per share |
|
|
11,493 |
|
|
|
11,592 |
|
|
|
11,488 |
|
|
|
11,593 |
|
|
(1) |
Basic and fully diluted earnings per share for class A and class B common stock are the same. |
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
|
|
|
June 30, |
|
|
December 31, |
|
||
|
|
|
2018 |
|
|
2017 |
|
||
|
|
|
(unaudited) |
|
|
(as adjusted, unaudited) |
|
||
|
Assets |
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
90,427 |
|
|
$ |
420,244 |
|
|
Restricted cash |
|
|
964 |
|
|
|
938 |
|
|
Short-term investments |
|
|
609,167 |
|
|
|
254,927 |
|
|
Accounts receivable, net |
|
|
125,115 |
|
|
|
165,364 |
|
|
Prepaid expenses and other current assets |
|
|
27,863 |
|
|
|
19,180 |
|
|
Total current assets |
|
|
853,536 |
|
|
|
860,653 |
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
51,918 |
|
|
|
53,359 |
|
|
Capitalized software development costs, net |
|
|
0 |
|
|
|
2,499 |
|
|
Deposits and other assets |
|
|
7,112 |
|
|
|
7,411 |
|
|
Deferred tax assets, net |
|
|
14,761 |
|
|
|
9,297 |
|
|
Total Assets |
|
$ |
927,327 |
|
|
$ |
933,219 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
|
$ |
22,670 |
|
|
$ |
30,711 |
|
|
Accrued compensation and employee benefits |
|
|
38,617 |
|
|
|
41,498 |
|
|
Deferred revenue and advance payments |
|
|
175,358 |
|
|
|
198,734 |
|
|
Total current liabilities |
|
|
236,645 |
|
|
|
270,943 |
|
|
|
|
|
|
|
|
|
|
|
|
Deferred revenue and advance payments |
|
|
5,816 |
|
|
|
6,400 |
|
|
Other long-term liabilities |
|
|
64,503 |
|
|
|
50,146 |
|
|
Deferred tax liabilities |
|
|
4 |
|
|
|
4 |
|
|
Total Liabilities |
|
|
306,968 |
|
|
|
327,493 |
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
Preferred stock undesignated, $0.001 par value; 5,000 shares authorized; no shares issued or outstanding |
|
|
0 |
|
|
|
0 |
|
|
Class A common stock, $0.001 par value; 330,000 shares authorized; 15,837 shares issued and 9,432 shares outstanding, and 15,817 shares issued and 9,412 shares outstanding, respectively |
|
|
16 |
|
|
|
16 |
|
|
Class B convertible common stock, $0.001 par value; 165,000 shares authorized; 2,035 shares issued and outstanding, and 2,035 shares issued and outstanding, respectively |
|
|
2 |
|
|
|
2 |
|
|
Additional paid-in capital |
|
|
570,502 |
|
|
|
559,918 |
|
|
Treasury stock, at cost; 6,405 shares |
|
|
(475,184 |
) |
|
|
(475,184 |
) |
|
Accumulated other comprehensive loss |
|
|
(8,111 |
) |
|
|
(5,659 |
) |
|
Retained earnings |
|
|
533,134 |
|
|
|
526,633 |
|
|
Total Stockholders' Equity |
|
|
620,359 |
|
|
|
605,726 |
|
|
Total Liabilities and Stockholders' Equity |
|
$ |
927,327 |
|
|
$ |
933,219 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
|
|
|
Six Months Ended |
|
|||||
|
|
|
June 30, |
|
|||||
|
|
|
2018 |
|
|
2017 |
|
||
|
|
|
(unaudited) |
|
|
(as adjusted, unaudited) |
|
||
|
Operating activities: |
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
6,501 |
|
|
$ |
25,510 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
3,870 |
|
|
|
8,540 |
|
|
Bad debt expense |
|
|
948 |
|
|
|
1,835 |
|
|
Deferred taxes |
|
|
(5,758 |
) |
|
|
(3,654 |
) |
|
Share-based compensation expense |
|
|
8,121 |
|
|
|
6,889 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
5,044 |
|
|
|
16,033 |
|
|
Prepaid expenses and other current assets |
|
|
453 |
|
|
|
(992 |
) |
|
Deposits and other assets |
|
|
(344 |
) |
|
|
(275 |
) |
|
Accounts payable and accrued expenses |
|
|
(7,775 |
) |
|
|
(15,472 |
) |
|
Accrued compensation and employee benefits |
|
|
(3,015 |
) |
|
|
(10,712 |
) |
|
Deferred revenue and advance payments |
|
|
10,502 |
|
|
|
11,058 |
|
|
Other long-term liabilities |
|
|
4,780 |
|
|
|
(1,647 |
) |
|
Net cash provided by operating activities |
|
|
23,327 |
|
|
|
37,113 |
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities: |
|
|
|
|
|
|
|
|
|
Proceeds from redemption of short-term investments |
|
|
245,680 |
|
|
|
151,860 |
|
|
Purchases of property and equipment |
|
|
(2,644 |
) |
|
|
(1,467 |
) |
|
Purchases of short-term investments |
|
|
(596,376 |
) |
|
|
(216,602 |
) |
|
Net cash used in investing activities |
|
|
(353,340 |
) |
|
|
(66,209 |
) |
|
|
|
|
|
|
|
|
|
|
|
Financing activities: |
|
|
|
|
|
|
|
|
|
Proceeds from sale of class A common stock under exercise of employee stock options |
|
|
2,471 |
|
|
|
1,677 |
|
|
Payments on capital lease obligations and other financing arrangements |
|
|
(9 |
) |
|
|
(12 |
) |
|
Net cash provided by financing activities |
|
|
2,462 |
|
|
|
1,665 |
|
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash |
|
|
(2,240 |
) |
|
|
5,246 |
|
|
Net decrease in cash, cash equivalents, and restricted cash |
|
|
(329,791 |
) |
|
|
(22,185 |
) |
|
Cash, cash equivalents, and restricted cash, beginning of period |
|
|
421,182 |
|
|
|
402,712 |
|
|
Cash, cash equivalents, and restricted cash, end of period |
|
$ |
91,391 |
|
|
$ |
380,527 |
|
REVENUE AND COST OF REVENUE DETAIL
(in thousands)
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
June 30, |
|
|
June 30, |
|
|||||||||||
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
||||
|
|
|
(unaudited) |
|
|
(as adjusted, unaudited) |
|
|
(unaudited) |
|
|
(as adjusted, unaudited) |
|
||||
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product licenses and subscription services: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product licenses |
|
$ |
19,292 |
|
|
$ |
17,728 |
|
|
$ |
36,593 |
|
|
$ |
40,374 |
|
|
Subscription services |
|
|
7,584 |
|
|
|
8,346 |
|
|
|
15,246 |
|
|
|
16,118 |
|
|
Total product licenses and subscription services |
|
|
26,876 |
|
|
|
26,074 |
|
|
|
51,839 |
|
|
|
56,492 |
|
|
Product support |
|
|
73,676 |
|
|
|
70,766 |
|
|
|
148,091 |
|
|
|
141,278 |
|
|
Other services: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consulting |
|
|
17,710 |
|
|
|
19,791 |
|
|
|
38,997 |
|
|
|
38,837 |
|
|
Education |
|
|
2,340 |
|
|
|
2,589 |
|
|
|
4,642 |
|
|
|
4,845 |
|
|
Total other services |
|
|
20,050 |
|
|
|
22,380 |
|
|
|
43,639 |
|
|
|
43,682 |
|
|
Total revenues |
|
|
120,602 |
|
|
|
119,220 |
|
|
|
243,569 |
|
|
|
241,452 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product licenses and subscription services: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product licenses |
|
|
1,667 |
|
|
|
1,747 |
|
|
|
3,878 |
|
|
|
3,419 |
|
|
Subscription services |
|
|
3,445 |
|
|
|
3,400 |
|
|
|
6,694 |
|
|
|
6,439 |
|
|
Total product licenses and subscription services |
|
|
5,112 |
|
|
|
5,147 |
|
|
|
10,572 |
|
|
|
9,858 |
|
|
Product support |
|
|
4,810 |
|
|
|
4,542 |
|
|
|
9,606 |
|
|
|
8,876 |
|
|
Other services: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consulting |
|
|
13,542 |
|
|
|
12,867 |
|
|
|
26,863 |
|
|
|
25,284 |
|
|
Education |
|
|
1,576 |
|
|
|
1,819 |
|
|
|
3,184 |
|
|
|
3,489 |
|
|
Total other services |
|
|
15,118 |
|
|
|
14,686 |
|
|
|
30,047 |
|
|
|
28,773 |
|
|
Total cost of revenues |
|
|
25,040 |
|
|
|
24,375 |
|
|
|
50,225 |
|
|
|
47,507 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
$ |
95,562 |
|
|
$ |
94,845 |
|
|
$ |
193,344 |
|
|
$ |
193,945 |
|
DEFERRED REVENUE DETAIL
(in thousands)
|
|
|
June 30, |
|
|
December 31, |
|
|
June 30, |
|
|||
|
|
2018 |
|
|
2017 |
|
|
2017 |
|
||||
|
|
|
(unaudited) |
|
|
(as adjusted, unaudited) |
|
|
(as adjusted, unaudited) |
|
|||
|
Current: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred product licenses revenue |
|
$ |
1,819 |
|
|
$ |
3,760 |
|
|
$ |
2,320 |
|
|
Deferred subscription services revenue |
|
|
13,847 |
|
|
|
17,324 |
|
|
|
17,741 |
|
|
Deferred product support revenue |
|
|
151,909 |
|
|
|
168,185 |
|
|
|
156,984 |
|
|
Deferred other services revenue |
|
|
7,783 |
|
|
|
9,465 |
|
|
|
8,681 |
|
|
Total current deferred revenue and advance payments |
|
$ |
175,358 |
|
|
$ |
198,734 |
|
|
$ |
185,726 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred product licenses revenue |
|
$ |
794 |
|
|
$ |
820 |
|
|
$ |
620 |
|
|
Deferred subscription services revenue |
|
|
9 |
|
|
|
126 |
|
|
|
784 |
|
|
Deferred product support revenue |
|
|
3,950 |
|
|
|
4,826 |
|
|
|
7,211 |
|
|
Deferred other services revenue |
|
|
1,063 |
|
|
|
628 |
|
|
|
856 |
|
|
Total non-current deferred revenue and advance payments |
|
$ |
5,816 |
|
|
$ |
6,400 |
|
|
$ |
9,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current and non-current: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred product licenses revenue |
|
$ |
2,613 |
|
|
$ |
4,580 |
|
|
$ |
2,940 |
|
|
Deferred subscription services revenue |
|
|
13,856 |
|
|
|
17,450 |
|
|
|
18,525 |
|
|
Deferred product support revenue |
|
|
155,859 |
|
|
|
173,011 |
|
|
|
164,195 |
|
|
Deferred other services revenue |
|
|
8,846 |
|
|
|
10,093 |
|
|
|
9,537 |
|
|
Total current and non-current deferred revenue and advance payments |
|
$ |
181,174 |
|
|
$ |
205,134 |
|
|
$ |
195,197 |
|
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(in thousands)
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
|
June 30, |
|
|
June 30, |
|
||||||||||
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
||||
|
|
|
(unaudited) |
|
|
(as adjusted, unaudited) |
|
|
(unaudited) |
|
|
(as adjusted, unaudited) |
|
||||
|
Reconciliation of non-GAAP income from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from operations |
|
$ |
(1,797 |
) |
|
$ |
14,076 |
|
|
$ |
(1,082 |
) |
|
$ |
34,911 |
|
|
Share-based compensation expense |
|
|
3,378 |
|
|
|
3,774 |
|
|
|
8,121 |
|
|
|
6,889 |
|
|
Non-GAAP income from operations |
|
$ |
1,581 |
|
|
$ |
17,850 |
|
|
$ |
7,039 |
|
|
$ |
41,800 |
|
WORLDWIDE EMPLOYEE HEADCOUNT
|
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|||||
|
|
2018 |
|
|
2018 |
|
|
2017 |
|
|
2017 |
|
|
2017 |
|
||||||
|
Subscription services |
|
|
54 |
|
|
|
57 |
|
|
|
53 |
|
|
|
50 |
|
|
|
49 |
|
|
Product support |
|
|
184 |
|
|
|
182 |
|
|
|
172 |
|
|
|
163 |
|
|
|
176 |
|
|
Consulting |
|
|
443 |
|
|
|
441 |
|
|
|
441 |
|
|
|
447 |
|
|
|
448 |
|
|
Education |
|
|
39 |
|
|
|
42 |
|
|
|
41 |
|
|
|
41 |
|
|
|
42 |
|
|
Sales and marketing |
|
|
687 |
|
|
|
667 |
|
|
|
652 |
|
|
|
635 |
|
|
|
642 |
|
|
Research and development |
|
|
651 |
|
|
|
604 |
|
|
|
559 |
|
|
|
539 |
|
|
|
526 |
|
|
General and administrative |
|
|
322 |
|
|
|
313 |
|
|
|
298 |
|
|
|
303 |
|
|
|
301 |
|
|
Total headcount |
|
|
2,380 |
|
|
|
2,306 |
|
|
|
2,216 |
|
|
|
2,178 |
|
|
|
2,184 |
|