EX-99.1 2 d622792dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

RetailMeNot Announces Third Quarter 2013 Financial Results


    Net Revenues Increased 39% Over the Prior Year Period


    Net Income Totaled $5.6 million


    Adjusted EBITDA Totaled $16.4 million

AUSTIN, Texas, November 5, 2013 — RetailMeNot, Inc. (NASDAQ:SALE), which operates the world’s largest digital coupon marketplace, reported its financial results for the quarter ended September 30, 2013.

Third Quarter Key Metrics and Financial Results Highlights

(All comparisons are made to the third quarter of 2012)


    Net revenues for the third quarter were $47.4 million, an increase of 39% compared to $34.2 million.


    Organic net revenues increased 35%. Organic net revenues exclude net revenues from acquired businesses not owned during both comparative periods.


    Mobile net revenues totaled $5.8 million, up 190% compared to $2.0 million.


    Net revenues from international markets totaled $9.5 million, up 56% compared to $6.1 million.


    Net income for the third quarter was $5.6 million, compared to net income of $6.6 million.


    Adjusted EBITDA for the third quarter was $16.4 million, or 35% of net revenues, compared to $15.8 million, or 46% of net revenues.


    Visits grew 19% to 132.2 million, compared to 111.5 million.


    Net revenues per visit grew 17% to $0.358, compared to $0.306.

“In the third quarter, an incredible combination of our retail partners, community members and employees helped more users of RetailMeNot’s websites and apps save more money than ever during their back-to-school shopping,” said Cotter Cunningham, founder, president and CEO, RetailMeNot, Inc. “We continue to believe in our global team’s ability to execute on improving our websites and mobile capabilities, setting the stage for the continued importance of our business as an efficient, highly effective marketing channel that facilitates increased sales for retailers and brands gearing up for the upcoming holidays.”

Third Quarter Business Highlights and Key Strategic Announcements


    As of September 30, 2013, more than 8.8 million apps had been downloaded globally between RetailMeNot.com, VoucherCodes.co.uk and Bons-de-Reduction.com, up from just 2.3 million as of September 30, 2012. During the third quarter, mobile app sessions totaled 46.0 million, versus 3.5 million during the third quarter of 2012.


    As of September 30, 2013, RetailMeNot had more than 13.9 million global subscribers to a newsletter or store alert, up 81% year over year.


    Released version 3.0 of the free RetailMeNot Coupons app for iPhone and Android devices with a new sleek design and a “bookmark” feature for tagging favorite stores and the ability for consumers to share saved coupons between the desktop and their mobile app.


    Expanded geo-targeting capabilities to cover a combination of over 3,000 malls and shopping centers.


On October 9, 2013, RetailMeNot acquired ZenDeals, an early stage technology company with a patent pending proprietary digital coupon verification technology, for approximately $18 million in an all cash transaction.

Quarterly Conference Call

RetailMeNot will host a webcast to discuss its third quarter 2013 financial results and business outlook today at 4:30 p.m. Eastern Time (3:30 pm Central Time). A live webcast of the conference call can be accessed within the investor relations section of the RetailMeNot website at http://investor.retailmenot.com. This webcast will contain forward-looking statements and other material information regarding the company’s financial and operating results.

Following completion of the call, a recorded replay of the webcast will be available on the website at http://investor.retailmenot.com. For those without access to the Internet, a replay of the call will be available beginning at 7:30 p.m. Central Time on November 5, 2013 through November 12, 2013 at 11:59 p.m. Central Time. To listen to the telephone replay, call (855) 859-2056 within the US or (404) 537-3406 internationally, access code 74591101.

About RetailMeNot, Inc.

RetailMeNot, Inc. (www.retailmenot.com/corp/) operates the world’s largest digital coupon marketplace. The company’s websites enable consumers across the globe seeking to save money to find hundreds of thousands of digital coupons and offers from retailers and brands. RetailMeNot, Inc. experienced more than 500 million visits to its websites in the last twelve months. The RetailMeNot, Inc. portfolio of coupon and deal websites includes www.RetailMeNot.com, the largest digital coupon marketplace in the United States; www.RetailMeNot.ca in Canada; www.VoucherCodes.co.uk, the largest digital coupon marketplace in the United Kingdom; www.Deals.com in Germany; www.Actiepagina.nl, a leading digital coupon site in the Netherlands; Bons-de-Reduction.com and www.Ma-Reduc.com, leading digital coupon sites in France; www.Poulpeo.com, a leading digital coupon site with cash back in France; and www. Deals2Buy.com, a leading discount offer site in North America. RetailMeNot, Inc. went public in July 2013 and is listed on the NASDAQ stock exchange under the ticker symbol “SALE.” Investors interested in learning more about the company can visit: http://investor.retailmenot.com/.

Operating Metrics

Visits. RetailMeNot defines a visit as a group of interactions that take place on one of RetailMeNot’s websites within a given time frame as measured by Google Analytics, a product that provides digital marketing intelligence. A single visit can contain multiple page views, events, social interactions, custom variables and e-commerce transactions. A single visitor can open multiple visits. Visits can occur on the same day, or over several days, weeks or months. As soon as one visit ends, there is then an opportunity to start a new visit. A visit ends either through the passage of time or a campaign change, with a campaign generally meaning arrival via search engine, referring site or campaign-

tagged information. A visit ends through passage of time either after thirty minutes of inactivity or at midnight Pacific Time. A visit ends through a campaign change if a visitor arrives via one campaign or source, leaves the site, and then returns via another campaign or source. Visits for the period do not include interactions through our mobile applications.

Net Revenues Per Visit. Net revenues per visit is defined as net revenues for the period divided by visits for the period.

Non-GAAP Financial Measures

To provide investors with additional information regarding RetailMeNot’s financial results, RetailMeNot has disclosed in the table below and elsewhere herein adjusted EBITDA, a non-GAAP financial measure. RetailMeNot has provided a reconciliation below of adjusted EBITDA to net income, the most directly comparable GAAP financial measure. RetailMeNot defines adjusted EBITDA as net income plus depreciation, amortization of intangible assets, stock-based compensation expense, third-party acquisition-related costs, other non-cash operating expenses (including asset impairment charges and compensation-related charges associated with seller notes issued in connection with acquisitions), net interest expense, other non-operating income or expense (including changes in fair value of warrant liabilities and contingent consideration) and income taxes, net of any foreign exchange income or expense.

RetailMeNot discloses adjusted EBITDA because it is a key measure used by RetailMeNot and its board of directors to understand and evaluate RetailMeNot’s financial and operating performance, establish budgets and operational goals and as an element in determining executive compensation. RetailMeNot believes it also facilitates period-to-period comparisons of operations that could otherwise be masked by the effect of the expenses that RetailMeNot excludes in this non-GAAP financial measure and facilitates comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. However, adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of RetailMeNot’s results as reported under GAAP. Because of these limitations, you should consider adjusted EBITDA alongside other financial performance measures, including various cash flow metrics, net income and RetailMeNot’s other GAAP results.

Forward-looking Statements

This release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included herein regarding RetailMeNot’s strategy, future operations, future financial position, future revenue, projected costs, prospects, plans and objectives of management are forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “will,” “would,” “target” and similar expressions (or the negative of these terms) are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include, among other things, statements about management’s estimates regarding future revenue and financial performance, visits and other statements about management’s beliefs, intentions or goals. RetailMeNot may not actually achieve the expectations disclosed in the forward-looking statements, and you should not place undue reliance on RetailMeNot’s forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results or events to differ materially from the expectations

disclosed in the forward-looking statements, including, but not limited to, risks related to RetailMeNot’s ability to manage its growth, including accurately planning and forecasting its financial results; RetailMeNot’s ability to attract visitors to its websites from search engines; RetailMeNot’s ability to attract and retain paid retailers and maintain its relationships with performance marketing networks; RetailMeNot’s ability to obtain and maintain digital coupon content and maintain the positive perception of its brand; RetailMeNot’s need to monetize digital coupons available through its mobile solutions; the competitive environment for RetailMeNot’s business; changes in consumer sentiment regarding RetailMeNot’s use of cookies; RetailMeNot’s need to manage regulatory, tax and litigation risks; RetailMeNot’s ability to protect consumer data and its intellectual property; RetailMeNot’s ability to manage international business uncertainties; the impact and integration of recent and future acquisitions; and other risks and potential factors that could affect RetailMeNot’s business and financial results identified in RetailMeNot’s filings with the Securities and Exchange Commission (the “SEC”), including its prospectus filed with the SEC pursuant to Rule 424(b)(4) on July 19, 2013. Additional information will also be set forth in RetailMeNot’s future quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings that RetailMeNot makes with the SEC. RetailMeNot does not intend or undertake any duty to release publicly any updates or revisions to any forward-looking statements contained herein.

Media Contact

Brian Hoyt

RetailMeNot, Inc.


(512) 777-2957

Investor Contact

Michael Magaro

RetailMeNot, Inc.


(512) 777-2899


RetailMeNot, Inc.

Condensed Consolidated Statements of Operations

(Unaudited, in thousands, except per share data)


     Three Months Ended
September 30,
    Nine Months Ended
September 30,
     2013     2012     2013     2012  

Net revenues

   $ 47,350      $ 34,160      $ 131,312      $ 93,895   

Costs and expenses:


Cost of net revenues (1)

     3,275        2,498        8,735        6,475   

Product development (1)

     8,214        3,834        21,103        9,326   

Sales and marketing (1)

     15,699        9,438        40,974        22,543   

General and administrative (1)

     7,250        3,979        19,919        10,777   

Amortization of purchased intangible assets

     3,056        3,222        8,673        10,244   

Other operating expenses

     441        416        1,299        2,611   













Total costs and expenses

     37,935        23,387        100,703        61,976   













Income from operations

     9,415        10,773        30,609        31,919   

Other income (expense):


Interest expense, net

     (1,156     (743     (2,410     (2,519

Other income (expense), net

     473        15        451        49   













Income before income taxes

     8,732        10,045        28,650        29,449   

Provision for income taxes

     (3,139     (3,471     (10,959     (11,201













Net income

     5,593        6,574        17,691        18,248   













Preferred stock dividends on participating preferred stock

     (7,752     (6,188     (19,928     (18,388













Total undistributed earnings (loss)

     (2,159     386        (2,237     (140

Undistributed earnings allocated to participating preferred stock

     —          (378     —          —     













Net income (loss) attributable to common stockholders

   $ (2,159   $ 8      $ (2,237   $ (140













Net income (loss) per share attributable to common stockholders:



   $ (0.06   $ 0.01      $ (0.16   $ (0.17














   $ (0.06   $ 0.01      $ (0.16   $ (0.17













Weighted average number of shares used in computing net income (loss) per share:



     38,235        871        13,703        821   














     38,235        2,657        13,703        821   













RetailMeNot, Inc.

Condensed Consolidated Statements of Operations (continued)

(Unaudited, in thousands)


     Three Months
Ended September, 30
     Nine Months
Ended September, 30
     2013      2012      2013      2012  

(1) Includes stock-based compensation as follows:


Cost of net revenues

   $ 156       $ 31       $ 449       $ 81   

Product development

     597         300         1,641         713   

Sales and marketing

     560         261         1,568         592   

General and administrative

     1,304         463         3,410         1,173   














   $ 2,617       $ 1,055       $ 7,068       $ 2,559   













RetailMeNot, Inc.

Calculation of Weighted-Average Basic and Diluted Shares Assuming Conversion of Redeemable Convertible Preferred Stock

(Unaudited, in thousands)


     Three Months
Ended September, 30
     Nine Months
Ended September, 30
     2013      2012      2013      2012  



GAAP basic weighted-average common shares

     38,235         871         13,703         821   

Add: Weighted-average shares from assumed conversion of redeemable convertible preferred stock

     11,045         44,180         33,014         44,094   













Basic weighted-average common shares (as converted basis)

     49,280         45,051         46,717         44,915   















Basic weighted-average common shares (as converted basis)

     49,280         45,051         46,717         44,915   

Add: Dilutive effect of stock options

     2,681         1,328         2,091         773   

Add: Dilutive effect of common stock warrants

     —           458         134         458   













Diluted weighted-average common shares (as converted basis)

     51,961         46,837         48,942         46,146   













RetailMeNot, Inc.

Reconciliation of Adjusted EBITDA

(Unaudited, in thousands)


     Three Months Ended
September, 30
    Nine Months Ended
September, 30
     2013     2012     2013     2012  

Net income

   $ 5,593      $ 6,574      $ 17,691      $ 18,248   

Depreciation and amortization

     3,547        3,512        10,076        10,938   

Stock-based compensation expense

     2,617        1,055        7,068        2,559   

Third party acquisition-related costs

     388        —          1,305        630   

Other operating expenses

     441        416        1,299        2,611   

Interest expense, net

     1,156        743        2,410        2,519   

Other income (expense), net

     (473     (15     (451     (49

Provision for income taxes

     3,139        3,471        10,959        11,201   













Adjusted EBITDA

   $ 16,408      $ 15,756      $ 50,357      $ 48,657   













RetailMeNot, Inc.

Condensed Consolidated Balance Sheets

(Unaudited, in thousands)


     Sep-13     Dec-12  



Current assets:


Cash and cash equivalents

   $ 136,408      $ 97,142   

Accounts receivable, net

     30,949        32,315   

Prepaids and other current assets, net

     5,472        1,939   







Total current assets

     172,829        131,396   

Property and equipment, net

     7,716        4,921   

Intangible assets, net

     79,330        77,985   


     168,626        152,755   

Other assets, net

     3,670        3,863   







Total assets

   $ 432,171      $ 370,920   







Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)


Current liabilities:


Accounts payable

   $ 3,184      $ 4,640   

Accrued compensation and benefits

     6,272        5,906   

Accrued expenses and other current liabilities

     6,471        4,794   

Income taxes payable

     808        1,254   

Current maturities of long term debt

     14,972        16,650   







Total current liabilities

     31,707        33,244   

Deferred tax liability—noncurrent

     8,484        6,631   

Long term debt

     28,000        22,275   

Other noncurrent liabilities

     1,534        1,116   







Total liabilities

     69,725        63,266   

Series B redeemable convertible preferred stock

     —          349,027   

Stockholders’ equity (deficit):


Common stock

     51        1   

Additional paid-In capital

     414,068        8,579   

Accumulated other comprehensive loss

     (91     (543

Accumulated deficit

     (51,582     (49,410







Total stockholders’ equity (deficit)

     362,446        (41,373







Liabilities, Redeemable Convertible Preferred Stock

and Stockholders’ Equity (Deficit)

   $ 432,171      $ 370,920   







RetailMeNot, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited, in thousands)


     Three Months Ended September 30,     Nine Months Ended September 30,  
     2013     2012     2013     2012  

Cash flows from operating activities:


Net income

   $ 5,593      $ 6,574      $ 17,691      $ 18,248   

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


Depreciation and amortization expense

     3,547        3,512        10,076        10,938   

Stock based compensation expense

     2,617        1,055        7,068        2,559   

Deferred income tax benefit (expense)

     (2,048     (271     (2,853     (1,680

Non-cash interest expense

     665        142        900        680   

Impairment of assets

     —          —          —          1,962   

Amortization of deferred compensation

     441        417        1,301        650   

Other non-cash expense and fair value change in liabilities, net

     (221     (63     (64     (59

Provision for doubtful accounts receivable

     —          27        142        30   

Changes in operating assets and liabilities:


Accounts receivable, net

     (4,175     (767     2,323        3,736   

Prepaid expenses and other current assets, net

     739        86        (1,723     (661

Accounts payable

     613        315        (1,347     318   

Accrued expenses and other current liabilities

     (92     1,735        1,982        (2,525

Other noncurrent assets and liabilities

     (626     25        (530     70   













Net cash provided by (used in) operating activities

     7,053        12,787        34,966        34,266   

Cash flows from investing activities:


Payments for acquisition of businesses, net of acquired cash

     (14,469     (748     (16,400     (10,290

Purchase of other assets

     (305     —          (851     —     

Purchase of property and equipment

     (2,328     (429     (4,160     (2,078













Net cash used in investing activities

     (17,102     (1,177     (21,411     (12,368

Cash flows from financing activities:


Proceeds from notes payable, net of issuance costs

     8,094        —          8,094        —     

Payments on notes payable

     (6,000     (2,225     (12,200     (18,108

Payments of preferred stock dividends

     (58,682     —          (58,682     —     

Proceeds from initial public offering, net of offering costs

     85,365        —          85,365        —     

Excess income tax benefit from employee stock-based awards

     1,287        —          1,287        —     

Obligation under capital lease

     (3     —          (8     —     

Proceeds from exercise of options and warrants to purchase

common stock

     1,083        76        1,652        226   













Net cash provided by (used in) financing activities

     31,144        (2,149     25,508        (17,882

Effect of exchange rate changes on cash

     442        86        203        78   













Change in cash and cash equivalents

     21,537        9,547        39,266        4,094   

Cash and cash equivalents, beginning of period

     114,871        82,781        97,142        88,234   













Cash and cash equivalents, end of period

   $ 136,408      $ 92,328      $ 136,408      $ 92,328