8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 6, 2018

 

 

Everbridge, Inc.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware    001-37874    26-2919312

(State or other jurisdiction

of incorporation)

  

(Commission

File Number)

  

(IRS Employer

Identification No.)

25 Corporate Drive, Suite 400, Burlington, Massachusetts    01803
(Address of principal executive offices)    (Zip Code)

Registrant’s telephone number, including area code: (818) 230-9700

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company    ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐

 

 

 


Item 2.02

Results of Operations and Financial Condition.

On August 6, 2018, Everbridge, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2018. The Company’s press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information included in Item 2.02 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

 

Item 7.01

Regulation FD Disclosure.

On August 6, 2018, the Company issued a press release announcing its financial results for the quarter ended June 30, 2018.

The information included in Item 7.01 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

 

Item 9.01

Financial Statements and Exhibits.

 

(d)

Exhibits

 

Exhibit No.

 

Description

99.1  

Press release dated August 6, 2018


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

Everbridge, Inc.

Dated: August 6, 2018

 

By:

 

/s/ Elliot J. Mark

   

Elliot J. Mark

Senior Vice President, General Counsel and Secretary

EX-99.1

EXHIBIT 99.1

Everbridge Announces Second Quarter 2018 Financial Results

Second Quarter Revenue Increased 43% Year-over-Year

Burlington, Mass – August 6, 2018Everbridge, Inc. (NASDAQ: EVBG), the global leader in critical event management and enterprise safety software applications to help keep people safe and businesses running, today announced its financial results for the second quarter ended June 30, 2018.

“Our strong second quarter results exceeded our guidance ranges for both revenue and non-GAAP profitability,” said Jaime Ellertson, Chief Executive Officer and Chairman of Everbridge. “Our performance was driven by the increasing global demand for Everbridge Mass Notification, further growth in the number and size of multi-product deals at new and existing customers, and on-going upgrades and adoption of our Critical Event Management platform. During the quarter we also saw our core international business continue to accelerate, which was further bolstered by our recent UMS acquisition.”

Ellertson continued, “Our strong Q2 performance across all of our key growth drivers gives us the confidence to raise our revenue expectations for the full year. Additionally, the combination of our accelerating international performance plus our expansion in the federal market enabled by our recent FedRAMP authorization will support our continued success as a leader in our large multi-billion-dollar Critical Event Management market.”

Second Quarter 2018 Financial Highlights

 

   

Total revenue was $35.8 million, an increase of 43% compared to $25.0 million for the second quarter of 2017.

 

   

GAAP operating loss was $(15.6) million, compared to a GAAP operating loss of $(3.5) million for the second quarter of 2017.

 

   

Non-GAAP operating loss was $(3.7) million, compared to non-GAAP operating loss of $(1.6) million for the second quarter of 2017. Non-GAAP operating loss excludes stock-based compensation and amortization of intangible assets related to acquisitions.

 

   

GAAP net loss was $(16.9) million, compared to $(3.4) million for the second quarter of 2017. GAAP net loss per share was $(0.59), based on 28.8 million basic and diluted weighted average common shares outstanding, compared to $(0.12) for the second quarter of 2017, based on 27.9 million basic and diluted weighted average common shares outstanding.

 

   

Non-GAAP net loss was $(5.1) million, compared to $(1.5) million in the second quarter of 2017. Non-GAAP net loss per share was $(0.18), based on 28.8 million basic and diluted weighted average common shares outstanding, compared to $(0.05) for the second quarter of 2017, based on 27.9 million basic and diluted weighted average common shares outstanding. Non-GAAP net loss excludes stock-based compensation and amortization of intangible assets related to acquisitions.


   

Adjusted EBITDA was a loss of $(1.8) million, compared to a loss of $(0.1) million in the second quarter of 2017. Adjusted EBITDA represents net loss before interest income and interest expense, income tax expense and benefit, depreciation and amortization expense and stock-based compensation expense.

 

   

Cash flow from operations was an outflow of $(9.0) million compared to an outflow of $(3.8) million for the second quarter of 2017.

 

   

Free cash flow was an outflow of $(11.2) million compared to an outflow of $(5.7) million for the second quarter of 2017. Free cash flow is cash flow from operations, less cash used for capital expenditures and additions to capitalized software development costs.

Recent Business Highlights

 

   

Ended the quarter with 4,158 global enterprise customers, up from 3,201 at the end of the second quarter of 2017.

 

   

Expanded the capabilities of the national alerting system for the country of Sweden, allowing all mobile operators in Sweden to send location-based SMS alerts to the entire population.

 

   

Received final FedRAMP authorization following a multi-year effort, broadening the addressable government market and reinforcing the security and scale of the Everbridge platform for other markets.

 

   

Appointed Alison Dean, currently executive vice president, chief financial officer and treasurer at iRobot, to the Everbridge Board of Directors.

 

   

Announced that long-time Chairman and CEO Jaime Ellertson will transition from CEO to Executive Chairman in mid to late 2019.

Business Outlook

Based on information available as of today, Everbridge is issuing guidance for the third quarter and full year 2018 as indicated below.

 

     Third Quarter 2018     Full Year 2018  

Total Revenue

   $ 37.9       to      $ 38.2     $ 143.7       to      $ 144.3  

GAAP net income/(loss)

   $ (9.7      $ (9.2   $ (51.4      $ (50.7

GAAP net income/(loss) per share

   $ (0.33      $ (0.31   $ (1.75      $ (1.73

Non-GAAP net income/(loss)

   $ (3.7      $ (3.4   $ (17.0      $ (16.3

Non-GAAP net income/(loss) per share

   $ (0.13      $ (0.12   $ (0.58      $ (0.56

Basic and diluted weighted average shares outstanding

     29.4          29.4       29.3          29.3  

Adjusted EBITDA

   $ (0.2      $ 0.1     $ (3.4      $ (2.8

(All figures in millions, except per share data)


Conference Call Information

 

What:    Everbridge Second Quarter 2018 Financial Results Conference Call
When:    Monday, August 6, 2018
Time:    4:30 p.m. ET
Live Call:    (866) 439-5043, domestic
   (409) 220-9843, international
Replay:    (855) 859-2056, passcode 3275238, domestic
   (404) 537-3406, passcode 3275238, international
Webcast (live & replay):    http://ir.everbridge.com

About Everbridge, Inc.

Everbridge, Inc. (NASDAQ: EVBG) is a global software company that provides enterprise software applications that automate and accelerate organizations’ operational response to critical events in order to keep people safe and businesses running. During public safety threats such as active shooter situations, terrorist attacks or severe weather conditions, as well as critical business events such as IT outages, cyber-attacks or other incidents such as product recalls or supply-chain interruptions, over 4,100 global customers rely on the company’s Critical Event Management Platform to quickly and reliably aggregate and assess threat data, locate people at risk and responders able to assist, automate the execution of pre-defined communications processes through the secure delivery to over 100 different communication devices, and track progress on executing response plans. The company’s platform sent over 2 billion messages in 2017, and offers the ability to reach 500 million people in more than 200 countries and territories including the entire mobile populations on a country-wide scale in Sweden, the Netherlands, the Bahamas, Singapore, Greece, Cambodia, and a number of the largest states in India. The company’s critical communications and enterprise safety applications include Mass Notification, Incident Management, Safety Connection™, IT Alerting, Visual Command Center®, Crisis Commander®, Community Engagement™ and Secure Messaging. Everbridge serves 9 of the 10 largest U.S. cities, 8 of the 10 largest U.S.-based investment banks, all 25 of the 25 busiest North American airports, six of the 10 largest global consulting firms, six of the 10 largest global automakers, all four of the largest global accounting firms, four of the 10 largest U.S.-based health care providers and four of the 10 largest U.S.-based health insurers. Everbridge is based in Boston and Los Angeles with additional offices in Lansing, San Francisco, Beijing, Kolkata, London, Oslo and Stockholm. For more information, visit www.everbridge.com, read the company blog, and follow on Twitter and Facebook.

Non-GAAP Financial Measures

This press release contains the following non-GAAP financial measures: non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP sales and marketing, non-GAAP research and development, non-GAAP general and administrative, non-GAAP operating expenses, non-GAAP operating income/(loss), non-GAAP net income/(loss), non-GAAP net income/(loss) per share, adjusted EBITDA, and free cash flow.


We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Everbridge’s financial condition and results of operations. We use these non-GAAP measures for financial, operational and budgetary decision-making purposes, to understand and evaluate our core operating performance and trends, and to generate future operating plans. We believe that these non-GAAP financial measures provide useful information regarding past financial performance and future prospects, and permit us to more thoroughly analyze key financial metrics used to make operational decisions. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other software companies, many of which present similar non-GAAP financial measures to investors.

We do not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. We urge investors to review the reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures, which are included in this press release, and not to rely on any single financial measure to evaluate our business.

Cautionary Language Concerning Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding the anticipated opportunity and trends for growth in our critical communications and enterprise safety applications and our overall business, our market opportunity, our expectations regarding sales of our products, our goal to maintain market leadership and extend the markets in which we compete for customers, and our expected financial results for the second quarter of 2018 and the full fiscal year 2018. These forward-looking statements are made as of the date of this press release and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as “expect,” “anticipate,” “should,” “believe,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “could,” “intend,” variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: the ability of our products and services to perform as intended and meet our customers’ expectations; our ability to attract new customers and retain and increase sales to existing customers; our ability to increase sales of our Mass Notification application and/or ability to


increase sales of our other applications; developments in the market for targeted and contextually relevant critical communications or the associated regulatory environment; our estimates of market opportunity and forecasts of market growth may prove to be inaccurate; we have not been profitable on a consistent basis historically and may not achieve or maintain profitability in the future; the lengthy and unpredictable sales cycles for new customers; nature of our business exposes us to inherent liability risks; our ability to attract, integrate and retain qualified personnel; our ability to successfully integrate businesses and assets that we have acquired or may acquire in the future; our ability to maintain successful relationships with our channel partners and technology partners; our ability to manage our growth effectively; our ability to respond to competitive pressures; potential liability related to privacy and security of personally identifiable information; our ability to protect our intellectual property rights, and the other risks detailed in our risk factors discussed in filings with the U.S. Securities and Exchange Commission (“SEC”), including but not limited to our Annual Report on Form 10-K for the year ended December 31, 2017 filed with the SEC on March 12, 2018. The forward-looking statements included in this press release represent our views as of the date of this press release. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

Media Contact:

Jeff Young

Everbridge

jeff.young@everbridge.com

781-859-4116

Investor Contact:

Garo Toomajanian

ICR

ir@everbridge.com

818-230-9712

All Everbridge products are trademarks of Everbridge, Inc. in the USA and other countries. All other product or company names mentioned are the property of their respective owners.


Consolidated Balance Sheets

(in thousands)

(unaudited)

 

     June 30, 2018     December 31, 2017  

Current assets:

    

Cash and cash equivalents

   $ 102,599     $ 103,051  

Short-term investments

     3,423       42,908  

Accounts receivable, net

     33,064       31,699  

Prepaid expenses

     4,949       2,563  

Deferred costs

     5,419       2,429  

Other current assets

     2,858       811  
  

 

 

   

 

 

 

Total current assets

     152,312       183,461  

Property and equipment, net

     2,722       2,796  

Capitalized software development costs, net

     11,487       10,005  

Goodwill

     53,048       31,328  

Intangible assets, net

     23,842       8,634  

Deferred costs

     7,792       —    

Other assets

     242       189  
  

 

 

   

 

 

 

Total assets

   $ 251,445     $ 236,413  
  

 

 

   

 

 

 

Current liabilities:

    

Accounts payable

   $ 4,154     $ 2,446  

Accrued payroll and employee related liabilities

     12,727       11,111  

Accrued expenses

     4,277       1,825  

Deferred revenue

     79,417       70,090  

Notes payable

     440       —    

Contingent consideration liabilities

     —         682  

Other current liabilities

     791       808  
  

 

 

   

 

 

 

Total current liabilities

     101,806       86,962  

Long-term liabilities:

    

Deferred revenue, noncurrent

     3,046       2,982  

Convertible senior notes

     91,755       89,481  

Deferred tax liabilities

     922       482  

Other long term liabilities

     1,079       515  
  

 

 

   

 

 

 

Total liabilities

   $ 198,608     $ 180,422  
  

 

 

   

 

 

 

Stockholders’ equity:

    

Common stock

     29       28  

Additional paid-in capital

     184,654       164,995  

Accumulated deficit

     (129,415     (109,252

Accumulated other comprehensive income (loss)

     (2,431     220  
  

 

 

   

 

 

 

Total stockholders’ equity

     52,837       55,991  
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 251,445     $ 236,413  
  

 

 

   

 

 

 


Consolidated Statements of Comprehensive Loss

(in thousands, except share and per share data)

(unaudited)

 

     Three months ended     Six months ended  
     June 30,     June 30,  
     2018     2017     2018     2017  

Revenue

   $ 35,822     $ 25,021     $ 66,341     $ 47,865  

Cost of revenue

     11,532       7,239       21,192       14,893  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     24,290       17,782       45,149       32,972  
     67.81     71.07     68.06     68.89

Operating expenses:

        

Sales and marketing

     19,179       11,057       34,955       21,963  

Research and development

     12,027       5,179       20,198       10,456  

General and administrative

     8,635       5,065       16,479       10,265  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     39,841       21,301       71,632       42,684  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating loss

     (15,551     (3,519     (26,483     (9,712
  

 

 

   

 

 

   

 

 

   

 

 

 

Other income (expense):

        

Interest and investment income

     400       77       856       128  

Interest expense

     (1,572     (2     (3,144     (3

Other income (expense), net

     (6     (6     (204     (38
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expense), net

     (1,178     69       (2,492     87  
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss before income taxes

     (16,729     (3,450     (28,975     (9,625

Income taxes, net

     (189     13       (285     (14
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

   $ (16,918   $ (3,437   $ (29,260   $ (9,639
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss per share attributable to common stockholders:

 

     

Basic

   $ (0.59   $ (0.12   $ (1.02   $ (0.35

Diluted

   $ (0.59   $ (0.12   $ (1.02   $ (0.35

Weighted-average common shares outstanding:

        

Basic

     28,848,809       27,877,346       28,642,887       27,526,038  

Diluted

     28,848,809       27,877,346       28,642,887       27,526,038  

Other comprehensive income (loss):

        

Foreign currency translation adjustment, net of taxes

     (2,384     85       (2,651     126  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive loss

   $ (19,302   $ (3,352   $ (31,911   $ (9,513
  

 

 

   

 

 

   

 

 

   

 

 

 

Stock-based compensation expense included in the above:

 

     

(in thousands)

        
     Three months ended     Six months ended  
     June 30,     June 30,  
     2018     2017     2018     2017  

Cost of revenue

   $ 940     $ 60     $ 1,565     $ 125  

Sales and marketing

     3,532       282       5,967       559  

Research and development

     3,205       176       4,515       322  

General and administrative

     2,345       583       4,669       1,063  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total stock-based compensation

   $ 10,022     $ 1,101     $ 16,716     $ 2,069  
  

 

 

   

 

 

   

 

 

   

 

 

 


Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

     Three months ended     Six months ended  
     June 30,     June 30,  
     2018     2017     2018     2017  

Cash flows from operating activities:

        

Net loss

   $ (16,918   $ (3,437   $ (29,260   $ (9,639

Adjustments to reconcile net loss to net cash provided by operating activities:

        

Depreciation and amortization

     3,690       2,295       6,328       5,228  

Amortization of deferred costs

     1,280       1,387       2,513       2,808  

Loss on disposal of assets

     —         —         84       —    

Deferred income taxes

     67       41       101       41  

Accretion of interest on convertible senior notes

     1,140       —         2,274       —    

Non-cash investment income

     (69     (8     (228     (8

Provision for doubtful accounts

     216       209       24       369  

Change in fair value of contingent consideration

     (250     —         (250     —    

Stock-based compensation

     9,926       1,089       16,512       2,044  

Increase (decrease) in operating assets and liabilities:

        

Accounts receivable

     (3,968     (7,170     5,627       (2,973

Prepaid expenses

     (360     27       (2,011     (1,044

Deferred costs

     (1,975     (3,411     (4,198     (2,427

Other assets

     1,013       1,715       (1,005     (352

Accounts payable

     (609     (426     93       (430

Accrued payroll and employee related liabilities

     (4,097     (388     305       500  

Accrued expenses

     (818     199       566       293  

Deferred revenue

     3,133       3,684       1,061       2,868  

Other liabilities

     (361     376       12       363  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in operating activities

     (8,960     (3,818     (1,452     (2,359
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from investing activities:

        

Capital expenditures

     (161     (282     (414     (505

Proceeds from sale of leaseback transaction

     —         395       —         395  

Additions to capitalized software development costs

     (2,039     (1,557     (4,038     (3,044

Additions to intangibles

     (32     —         (168     —    

Payment for acquisition of business, net of acquired cash

     (35,549     (294     (35,857     (21,529

Purchase of short-term investments

     —         (12,427     (30,932     (12,427

Maturities of short-term investments

     45,145       —         70,645       —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     7,364       (14,165     (764     (37,110
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from financing activities:

        

RSUs withheld to settle employee tax withholding liability

     (2,750     —         (3,772     —    

Payment of contingent consideration

     (431     —         (431     —    

Proceeds from follow on offering, net

     —         10,444       —         10,444  

Payments of public offering costs

     —         (431     —         (729

Payments of debt issuance costs

     —         —         (84     —    

Proceeds from employee stock purchase plan

     —         —         881       854  

Proceeds from stock option exercises

     4,369       1,103       5,835       1,115  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by financing activities

     1,188       11,116       2,429       11,684  
  

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rates on cash, cash equivalents and restricted cash

     (626     21       (665     (147
  

 

 

   

 

 

   

 

 

   

 

 

 

Net decrease in cash, cash equivalents and restricted cash

     (1,034     (6,846     (452     (27,932

Cash, cash equivalents and restricted cash, beginning of period

     103,633       39,679       103,051       60,765  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash, cash equivalents and restricted cash, end of period

   $ 102,599     $ 32,833     $ 102,599     $ 32,833  
  

 

 

   

 

 

   

 

 

   

 

 

 


Reconciliation of GAAP measures to non-GAAP measures

(in thousands, except share and per share data)

(unaudited)

 

     Three months ended     Six months ended  
     June 30,     June 30,  
     2018     2017     2018     2017  

Cost of revenue

   $ 11,532     $ 7,239     $ 21,192     $ 14,893  

Amortization of acquired intangibles

     (381     (291     (633     (1,032

Stock-based compensation

     (940     (60     (1,565     (125
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP cost of revenue

     10,211       6,888       18,994       13,736  

Gross profit

     24,290       17,782       45,149       32,972  

Amortization of acquired intangibles

     381       291       633       1,032  

Stock-based compensation

     940       60       1,565       125  
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP gross profit

     25,611       18,133       47,347       34,129  

Non-GAAP gross margin

     71.50     72.47     71.37     71.30

Sales and marketing

     19,179       11,057       34,955       21,963  

Stock-based compensation

     (3,532     (282     (5,967     (559
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP sales and marketing

     15,647       10,775       28,988       21,404  

Research and development

     12,027       5,179       20,198       10,456  

Stock-based compensation

     (3,205     (176     (4,515     (322
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP research and development

     8,822       5,003       15,683       10,134  

General and administrative

     8,635       5,065       16,479       10,265  

Amortization of acquired intangibles

     (1,426     (554     (1,997     (1,002

Stock-based compensation

     (2,345     (583     (4,669     (1,063
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP general and administrative

     4,864       3,928       9,813       8,200  

Total operating expenses

     39,841       21,301       71,632       42,684  

Amortization of acquired intangibles

     (1,426     (554     (1,997     (1,002

Stock-based compensation

     (9,082     (1,041     (15,151     (1,944
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP operating expenses

   $ 29,333     $ 19,706     $ 54,484     $ 39,738  

Operating loss

   $ (15,551   $ (3,519   $ (26,483   $ (9,712

Amortization of acquired intangibles

     1,807       845       2,630       2,034  

Stock-based compensation

     10,022       1,101       16,716       2,069  
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP operating loss

   $ (3,722   $ (1,573   $ (7,137   $ (5,609

Net loss

   $ (16,918   $ (3,437   $ (29,260   $ (9,639

Amortization of acquired intangibles

     1,807       845       2,630       2,034  

Stock-based compensation

     10,022       1,101       16,716       2,069  
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net loss

   $ (5,089   $ (1,491   $ (9,914   $ (5,536

Weighted average common shares outstanding, basic and diluted

     28,848,809       27,877,346       28,642,887       27,526,038  

Non-GAAP net loss per share

   $ (0.18   $ (0.05   $ (0.35   $ (0.20

Net loss

   $ (16,918   $ (3,437   $ (29,260   $ (9,639

Interest and investment (income) expense, net

     1,172       (75     2,288       (125

Income taxes, net

     189       (13     285       14  

Depreciation and amortization

     3,690       2,295       6,328       5,228  
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     (11,867     (1,230     (20,359     (4,522

Stock-based compensation

     10,022       1,101       16,716       2,069  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ (1,845   $ (129   $ (3,643   $ (2,453

Net cash provided by operating activities

   $ (8,960   $ (3,818   $ (1,452   $ (2,359

Capital expenditures

     (161     (282     (414     (505

Additions to capitalized software development costs

     (2,039     (1,557     (4,038     (3,044
  

 

 

   

 

 

   

 

 

   

 

 

 

Free cash flow

   $ (11,160   $ (5,657   $ (5,904   $ (5,908


(Continued) Reconciliation of GAAP measures to non-GAAP measures

(in millions, except share and per share data)

(unaudited)

 

Business outlook:    Three months ended     Year ended  
     September 30, 2018     December 31, 2018  
     Low end     High end     Low end     High end  

Net loss

   $ (9.7   $ (9.2   $ (51.4   $ (50.7

Amortization of acquired intangibles

     1.9       1.9       6.4       6.4  

Stock-based compensation

     4.1       3.9       28.0       28.0  
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net loss

   $ (3.7   $ (3.4   $ (17.0   $ (16.3

Weighted average common shares outstanding, basic and diluted

     29,400,000       29,400,000       29,300,000       29,300,000  

Net loss per share

   $ (0.33   $ (0.31   $ (1.75   $ (1.73

Non-GAAP net loss per share

   $ (0.13   $ (0.12   $ (0.58   $ (0.56

Net loss

   $ (9.7   $ (9.2   $ (51.4   $ (50.7

Interest (income) expense, net

     1.3       1.3       5.2       5.1  

Income taxes, net

     0.2       0.2       0.7       0.7  

Depreciation and amortization

     3.9       3.9       14.1       14.1  
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     (4.3     (3.8     (31.4     (30.8

Stock-based compensation

     4.1       3.9       28.0       28.0  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ (0.2   $ 0.1     $ (3.4   $ (2.8