EX-99.1 2 ex-99d1.htm EX-99.1 egan_Ex99_1

Exhibit 99.1

 

eGain Reports 53% SaaS Revenue Growth in Fiscal Second Quarter;

Raises Annual Revenue Guidance

 

Sunnyvale, CA (February 7, 2019) – eGain (NASDAQ: EGAN), a leading provider of cloud customer engagement solutions, today announced financial results for its fiscal 2019 second quarter ended December 31, 2018.

 

Ashu Roy, eGain CEO, commented, “We are pleased with the strong top and bottom-line performance we achieved in the second quarter. We hosted a successful DX18 customer event in Chicago and we are encouraged to see growing demand for AI-powered digital customer engagement.”

 

Fiscal 2019 Second Quarter Financial Highlights – ASC 606 (standard adopted effective July 1, 2018):

 

·

Total revenue was $17.7 million, up 15% year over.

·

SaaS revenue was $11.9 million, up 53% year over year.

·

Subscription revenue, which includes SaaS and legacy support revenue, was $15.8 million, up 25% year over year and 89% of total revenue.

·

GAAP net income was $2.0 million, or $0.07 per share on a basic and diluted basis, compared to a GAAP net loss of $788,000, or $(0.03) per share on a basic and diluted basis, for Q2 2018.

·

Non-GAAP net income was $2.4 million, or $0.09 per share on a basic basis and $0.08 on a diluted basis, compared to non-GAAP net income of $451,000, or $0.02 per share on a basic and diluted basis, for Q2 2018.

·

Cash provided by operations in the second quarter was $863,000, compared to cash provided by operations of $2.6 million in Q2 2018.

·

Total cash and cash equivalents as of December 31, 2018 was $11.2 million, compared to $11.5 million as of June 30, 2018.

 

 

Fiscal 2019 Financial Guidance

For the fiscal year ending June 30, 2019, the Company is raising its previously provided guidance for SaaS revenue growth for the year from between 25% to 30% to between 30% and 35%. The Company is also raising its previously provided guidance for Subscription revenue growth from between 10% and 15% to between 13% and 16%.

 

Non-GAAP Financial Measures

This press release includes non-GAAP operating income/(loss) and non-GAAP net income/(loss) as supplemental information relating to our operating results. Non-GAAP net income/(loss) is defined as net income/(loss) adjusted for stock-based compensation expense and amortization of acquired intangible assets. Non-GAAP results are presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles, and may be different from non-GAAP measures used by other companies. eGain’s management uses these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analyses and for budgeting and planning purposes. eGain believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other software companies, many of which present similar non-GAAP financial measures to investors, and that it allows for greater transparency with respect to key metrics used by management in its financial and operational decision-making. Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this release. eGain urges investors to review the reconciliation and not to rely on any single financial measure to evaluate the Company’s business.

 

 

 

1

 

Quarterly Conference Call Information

eGain will discuss its quarterly results today via teleconference at 2:00 p.m. Pacific Daylight Time. To access the live call, please dial (877) 260-1479 (U.S. toll free) or (334) 323-0522 (international), and give the participant pass code 6329790. A live webcast of the call and slide presentation can be accessed from the investors section at www.egain.com. A replay of the conference call will also be available via telephone beginning approximately two hours after conclusion of the call and remain in effect for one week. To access the replay dial-in information, please click here. An archive of the webcast will also be available on the investors section at www.egain.com.

 

About eGain

eGain customer engagement solutions power digital transformation for leading brands. Our top-rated cloud applications for social, mobile, web, and contact centers help clients deliver connected customer journeys in an omnichannel world. To learn more about eGain, visit www.egain.com.

 

Cautionary Note Regarding Forward-Looking Statements. This press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements include our beliefs regarding demand for our products, including our belief that our pipeline and the demand for our AI-powered customer engagement platform offering is strong and that we see positive business and customer momentum, among other matters.  These forward-looking statements also include our beliefs with respect to SaaS revenue growth and Subscription revenue growth for the current fiscal year. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, the Company’s results could differ materially from the results expressed or implied by the forward-looking statements we make. The risks and uncertainties referred to above include, but are not limited to: risks associated with new product releases; risks that customer demand may fluctuate or decrease; risks that we are unable to collect unbilled contractual commitments; risks that our SaaS based revenue model and lengthy sales cycles may negatively affect our operating results; currency risks; our ability to capitalize on customer engagement; the success of organization changes; risks related to our reliance on a relatively small number of customers for a substantial portion of our revenue; our ability to compete successfully and manage growth; our ability to develop and expand strategic and third party distribution channels; risks related to our international operations; our ability to invest resources to improve our products and continue to innovate; and other risks detailed from time to time in eGain’s public filings, including eGain’s annual report on Form 10-K filed on September 13, 2018 and subsequent reports filed with the Securities and Exchange Commission, which are available on the Securities and Exchange Commission’s Web site at www.sec.gov. These forward-looking statements are based on current expectations and speak only as of the date hereof. The Company assumes no obligation to update these forward-looking statements.

 

eGain, the eGain logo, and all other eGain product names and slogans are trademarks or registered trademarks of eGain Corp. in the United States and/or other countries. All other Company names and products mentioned in this release may be trademarks or registered trademarks of the respective companies.

 

MKR Group Investor Relations

Todd Kehrli or Jim Byers

Phone: 323-468-2300

Email: egain@mkr-group.com

 

 

2

 

eGain Corporation

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

    

December 31,

2018 (*)

    

June 30,
2018

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

11,222

 

$

11,498

Restricted cash

 

 

 6

 

 

 6

Accounts receivable, net

 

 

16,178

 

 

7,389

Costs capitalized to obtain revenue contracts, net

 

 

682

 

 

986

Prepaid expenses

 

 

1,688

 

 

2,374

Other current assets

 

 

409

 

 

285

Total current assets

 

 

30,185

 

 

22,538

Property and equipment, net

 

 

468

 

 

559

Costs capitalized to obtain revenue contracts, net of current portion

 

 

1,904

 

 

891

Intangible assets, net

 

 

429

 

 

733

Goodwill

 

 

13,186

 

 

13,186

Other assets

 

 

2,039

 

 

1,715

Total assets

 

$

48,211

 

$

39,622

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' DEFICIT

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

2,384

 

$

3,905

Accrued compensation

 

 

4,463

 

 

5,706

Accrued liabilities

 

 

1,746

 

 

2,285

Deferred revenue

 

 

28,836

 

 

18,364

Capital lease obligations

 

 

 7

 

 

42

Bank borrowings, net of deferred financing costs

 

 

4,996

 

 

259

Total current liabilities

 

 

42,432

 

 

30,561

Deferred revenue, net of current portion

 

 

6,136

 

 

7,833

Bank borrowings, net of current portion and deferred financing costs

 

 

 —

 

 

8,941

Other long-term liabilities

 

 

980

 

 

1,000

Total liabilities

 

 

49,548

 

 

48,335

Commitments and contingencies

 

 

 

 

 

 

Stockholders' deficit:

 

 

 

 

 

 

Common stock

 

 

28

 

 

28

Additional paid-in capital

 

 

347,182

 

 

346,222

Notes receivable from stockholders

 

 

(87)

 

 

(85)

Accumulated other comprehensive loss

 

 

(1,620)

 

 

(1,618)

Accumulated deficit

 

 

(346,840)

 

 

(353,260)

Total stockholders' deficit

 

 

(1,337)

 

 

(8,713)

Total liabilities and stockholders' deficit

 

$

48,211

 

$

39,622

(*) Includes the impact from the adoption of ASU 2014-09 (Topic 606)

 

 

 

 

 

 

 

3

 

eGain Corporation

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

December 31, 

 

 

December 31, 

 

    

2018

    

2017

 

    

2018

    

2017

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscription

 

$

15,823

 

$

12,629

 

 

$

29,550

 

$

24,459

Professional services

 

 

1,881

 

 

2,769

 

 

 

3,855

 

 

5,514

Total revenue

 

 

17,704

 

 

15,398

 

 

 

33,405

 

 

29,973

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of subscription

 

 

3,692

 

 

3,188

 

 

 

7,087

 

 

6,226

Cost of professional services

 

 

1,850

 

 

2,401

 

 

 

3,690

 

 

4,789

Total cost of revenue

 

 

5,542

 

 

5,589

 

 

 

10,777

 

 

11,015

Gross profit

 

 

12,162

 

 

9,809

 

 

 

22,628

 

 

18,958

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

3,596

 

 

3,708

 

 

 

7,155

 

 

7,139

Sales and marketing

 

 

4,391

 

 

4,729

 

 

 

8,385

 

 

8,895

General and administrative

 

 

2,046

 

 

1,768

 

 

 

4,206

 

 

3,574

Total operating expenses

 

 

10,033

 

 

10,205

 

 

 

19,746

 

 

19,608

Income (loss) from operations

 

 

2,129

 

 

(396)

 

 

 

2,882

 

 

(650)

Interest expense, net

 

 

(139)

 

 

(239)

 

 

 

(329)

 

 

(583)

Other income (expense), net

 

 

(6)

 

 

(30)

 

 

 

11

 

 

(161)

Income (loss) before income tax benefit (expense)

 

 

1,984

 

 

(665)

 

 

 

2,564

 

 

(1,394)

Income tax benefit (expense)

 

 

16

 

 

(123)

 

 

 

40

 

 

38

Net income (loss)

 

$

2,000

 

$

(788)

 

 

$

2,604

 

$

(1,356)

Per share information:

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.07

 

$

(0.03)

 

 

$

0.09

 

$

(0.05)

Diluted

 

$

0.07

 

$

(0.03)

 

 

$

0.09

 

$

(0.05)

Weighted-average shares used in computation:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

27,875

 

 

27,241

 

 

 

27,781

 

 

27,213

Diluted

 

 

29,420

 

 

27,241

 

 

 

29,687

 

 

27,213

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation included in above costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

70

 

$

146

 

 

$

144

 

$

209

Research and development

 

 

108

 

 

275

 

 

 

224

 

 

385

Sales and marketing

 

 

54

 

 

129

 

 

 

100

 

 

192

General and administrative

 

 

104

 

 

186

 

 

 

230

 

 

269

 

 

$

336

 

$

736

 

 

$

698

 

$

1,055

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of intangible assets included in above costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

67

 

$

67

 

 

$

134

 

$

134

Research and development

 

 

 —

 

 

436

 

 

 

170

 

 

873

 

 

$

67

 

$

503

 

 

$

304

 

$

1,007

 

4

 

eGain Corporation

GAAP to Non-GAAP Reconciliation Table

(in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended
December 31,

 

Six Months Ended
December 31,

 

    

2018

 

2017

 

2018

 

2017

Income (loss) from operations

 

$

2,129

 

$

(396)

 

$

2,882

 

$

(650)

Add:

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

336

 

 

736

 

 

698

 

 

1,055

Amortization of acquired intangibles

 

 

67

 

 

503

 

 

304

 

 

1,007

Non-GAAP income from operations

 

$

2,532

 

$

843

 

$

3,884

 

$

1,412

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

2,000

 

$

(788)

 

$

2,604

 

$

(1,356)

Add:

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

336

 

 

736

 

 

698

 

 

1,055

Amortization of acquired intangibles

 

 

67

 

 

503

 

 

304

 

 

1,007

Non-GAAP net income

 

$

2,403

 

$

451

 

$

3,606

 

$

706

Per share information:

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.09

 

$

0.02

 

$

0.13

 

$

0.03

Diluted

 

$

0.08

 

$

0.02

 

$

0.12

 

$

0.03

Weighted-average shares used in computation:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

27,875

 

 

27,241

 

 

27,781

 

 

27,213

Diluted

 

 

29,420

 

 

28,000

 

 

29,687

 

 

27,757

 

5

 

eGain Corporation

Other GAAP to Non-GAAP Supplemental Financial Information

(in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended
December 31,

 

 

Growth Rates

 

 

2018

 

2017

 

 

 

 

 

 

 

 

 

Reported under
Topic 606

    

Topic 606
Impact

    

Excluding
Topic 606 Impact

    

Reported under
Topic 605

    

Reported under
Topic 606

 

    

Excluding Topic
606 Impact

Total deferred revenue:

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP deferred revenue

 

$

34,972

 

$

(4,690)

 

$

30,282

 

$

29,113

 

 

 

 

 

 

 

Unbilled and uncollected contractual commitments (off-balance sheet)

 

 

31,408

 

 

7,719

 

 

39,127

 

 

39,273

 

 

 

 

 

 

 

Total deferred revenue:

 

$

66,380

 

$

3,029

 

$

69,409

 

$

68,386

 

 
(3%)

 

 

 

                     1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SaaS

 

$

11,875

 

$

(380)

 

$

11,495

 

$

7,747

 

 
53%

 

 

 
48%

Legacy support

 

 

3,948

 

 

(42)

 

 

3,906

 

 

4,882

 

 
(19%)

 

 

 
(20%)

GAAP subscription

 

 

15,823

 

 

(422)

 

 

15,401

 

 

12,629

 

 
25%

 

 

 
22%

GAAP professional services

 

 

1,881

 

 

(603)

 

 

1,278

 

 

2,769

 

 
(32%)

 

 

 
(54%)

Total non-GAAP revenue

 

$

17,704

 

$

(1,025)

 

$

16,679

 

$

15,398

 

 
15%

 

 

 
8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Revenue:

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP subscription

 

$

3,692

 

 

 

 

 

 

 

$

3,188

 

 

 

 

 

 

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

(67)

 

 

 

 

 

 

 

 

(67)

 

 

 

 

 

 

 

Non-GAAP subscription

 

$

3,625

 

 

 

 

 

 

 

$

3,121

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP professional services

 

$

1,850

 

 

 

 

 

 

 

$

2,401

 

 

 

 

 

 

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

(70)

 

 

 

 

 

 

 

 

(146)

 

 

 

 

 

 

 

Non-GAAP professional services

 

$

1,780

 

 

 

 

 

 

 

$

2,255

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP total cost of revenue

 

$

5,542

 

 

 

 

 

 

 

$

5,589

 

 

 

 

 

 

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

(70)

 

 

 

 

 

 

 

 

(146)

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

(67)

 

 

 

 

 

 

 

 

(67)

 

 

 

 

 

 

 

Non-GAAP total cost of revenue

 

$

5,405

 

 

 

 

 

 

 

$

5,376

 

 
1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP subscription

 

$

12,198

 

 

 

 

 

 

 

$

9,508

 

 

 

 

 

 

 

Non-GAAP professional services

 

 

101

 

 

 

 

 

 

 

 

514

 

 

 

 

 

 

 

Non-GAAP gross profit

 

$

12,299

 

 

 

 

 

 

 

$

10,022

 

 
23%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP research and development

 

$

3,596

 

 

 

 

 

 

 

$

3,708

 

 

 

 

 

 

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

(108)

 

 

 

 

 

 

 

 

(275)

 

 

 

 

 

 

 

Amortization of acquired intangible assets

 

 

 -

 

 

 

 

 

 

 

 

(436)

 

 

 

 

 

 

 

Non-GAAP research and development

 

$

3,488

 

 

 

 

 

 

 

$

2,997

 

 
16%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP sales and marketing

 

$

4,391

 

$

171

 

$

4,562

 

$

4,729

 

 

 

 

 

 

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

(54)

 

 

 

 

 

 

 

 

(129)

 

 

 

 

 

 

 

Amortization of acquired intangible assets

 

 

 —

 

 

 

 

 

 

 

 

 -

 

 

 

 

 

 

 

Non-GAAP sales and marketing

 

$

4,337

 

 

 

 

 

 

 

$

4,600

 

 
(6%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP general and administrative

 

$

2,046

 

 

 

 

 

 

 

$

1,768

 

 

 

 

 

 

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

(104)

 

 

 

 

 

 

 

 

(186)

 

 

 

 

 

 

 

Amortization of acquired intangible assets

 

 

 —

 

 

 

 

 

 

 

 

 —

 

 

 

 

 

 

 

Non-GAAP general and administrative

 

$

1,942

 

 

 

 

 

 

 

$

1,582

 

 
23%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP operating expenses

 

$

10,033

 

 

 

 

 

 

 

$

10,205

 

 

 

 

 

 

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

(266)

 

 

 

 

 

 

 

 

(590)

 

 

 

 

 

 

 

Amortization of acquired intangible assets

 

 

 —

 

 

 

 

 

 

 

 

(436)

 

 

 

 

 

 

 

Non-GAAP operating expenses

 

$

9,767

 

 

 

 

 

 

 

$

9,179

 

 
6%

 

 

 

 

 

 

 

6

 

eGain Corporation

Other GAAP to Non-GAAP Supplemental Financial Information

(in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended
December 31,

 

Growth Rates

 

 

2018

 

2017

 

 

 

 

 

 

 

 

Reported under
Topic 606

    

Topic 606
Impact

    

Excluding
Topic 606 Impact

    

Reported under
Topic 605

    

Reported under
Topic 606

    

Excluding Topic
606 Impact

Total deferred revenue:

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP deferred revenue

 

$

34,972

 

$

(4,690)

 

$

30,282

 

$

29,113

 

 

 

 

 

 

Unbilled and uncollected contractual commitments (off-balance sheet)

 

 

31,408

 

 

7,719

 

 

39,127

 

 

39,273

 

 

 

 

 

 

Total deferred revenue:

 

$

66,380

 

$

3,029

 

$

69,409

 

$

68,386

 

 
(3%)

 

 
1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SaaS

 

$

21,599

 

$

40

 

$

21,639

 

$

14,691

 

 
47%

 

 
47%

Legacy support

 

 

7,951

 

 

(69)

 

 

7,882

 

 

9,768

 

 
(19%)

 

 
(19%)

GAAP subscription

 

 

29,550

 

 

(29)

 

 

29,521

 

 

24,459

 

 
21%

 

 
21%

GAAP professional services

 

 

3,855

 

 

(806)

 

 

3,049

 

 

5,514

 

 
(30%)

 

 
(45%)

Total non-GAAP revenue

 

$

33,405

 

$

(835)

 

$

32,570

 

$

29,973

 

 
11%

 

 
9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Revenue:

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP subscription

 

$

7,087

 

 

 

 

 

 

 

$

6,226

 

 

 

 

 

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

(134)

 

 

 

 

 

 

 

 

(134)

 

 

 

 

 

 

Non-GAAP subscription

 

$

6,953

 

 

 

 

 

 

 

$

6,092

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP professional services

 

$

3,690

 

 

 

 

 

 

 

$

4,789

 

 

 

 

 

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

(144)

 

 

 

 

 

 

 

 

(209)

 

 

 

 

 

 

Non-GAAP professional services

 

$

3,546

 

 

 

 

 

 

 

$

4,580

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP total cost of revenue

 

$

10,777

 

 

 

 

 

 

 

$

11,015

 

 

 

 

 

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

(134)

 

 

 

 

 

 

 

 

(134)

 

 

 

 

 

 

Stock-based compensation

 

 

(144)

 

 

 

 

 

 

 

 

(209)

 

 

 

 

 

 

Non-GAAP total cost of revenue

 

$

10,499

 

 

 

 

 

 

 

$

10,672

 

 
(2%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP subscription

 

$

22,597

 

 

 

 

 

 

 

$

18,367

 

 

 

 

 

 

Non-GAAP professional services

 

 

309

 

 

 

 

 

 

 

 

934

 

 

 

 

 

 

Non-GAAP gross profit

 

$

22,906

 

 

 

 

 

 

 

$

19,301

 

 
19%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP research and development

 

$

7,155

 

 

 

 

 

 

 

$

7,139

 

 

 

 

 

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

(224)

 

 

 

 

 

 

 

 

(385)

 

 

 

 

 

 

Amortization of acquired intangible assets

 

 

(170)

 

 

 

 

 

 

 

 

(873)

 

 

 

 

 

 

Non-GAAP research and development

 

$

6,761

 

 

 

 

 

 

 

$

5,881

 

 
15%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP sales and marketing

 

$

8,385

 

$

293

 

$

8,678

 

$

8,895

 

 

 

 

 

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

(100)

 

 

 

 

 

 

 

 

(192)

 

 

 

 

 

 

Amortization of acquired intangible assets

 

 

 —

 

 

 

 

 

 

 

 

 -

 

 

 

 

 

 

Non-GAAP sales and marketing

 

$

8,285

 

 

 

 

 

 

 

$

8,703

 

 
(5%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP general and administrative

 

$

4,206

 

 

 

 

 

 

 

$

3,574

 

 

 

 

 

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

(230)

 

 

 

 

 

 

 

 

(269)

 

 

 

 

 

 

Amortization of acquired intangible assets

 

 

 —

 

 

 

 

 

 

 

 

 —

 

 

 

 

 

 

Non-GAAP general and administrative

 

$

3,976

 

 

 

 

 

 

 

$

3,305

 

 
20%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP operating expenses

 

$

19,746

 

 

 

 

 

 

 

$

19,608

 

 

 

 

 

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

(554)

 

 

 

 

 

 

 

 

(846)

 

 

 

 

 

 

Amortization of acquired intangible assets

 

 

(170)

 

 

 

 

 

 

 

 

(873)

 

 

 

 

 

 

Non-GAAP operating expenses

 

$

19,022

 

 

 

 

 

 

 

$

17,889

 

 
6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7