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

Exhibit 99.1

 

eGain Reports 37% Growth in SaaS Revenue for Fiscal 2019; Exceeds Full Year Revenue Guidance

 

 

Sunnyvale, CA (September 3, 2019) – eGain (NASDAQ: EGAN),  a leading provider of customer engagement hubs, today announced financial results for its fiscal 2019 fourth quarter and full year ended June 30, 2019.

 

Ashu Roy, eGain CEO, commented, “We had a solid fiscal 2019 with revenue ahead of guidance and strong cash flow. Demand for AI-powered digital automation continues to strengthen and we are stepping up growth investment, especially in the partner ecosystem. The new fiscal year is off to a good start, with strong bookings early in the first quarter.”

 

Fiscal 2019 Full Year Financial Highlights

 

·

SaaS revenue was $44.8 million, up 37% year over year (39% in constant currency).

·

Subscription revenue, which includes SaaS and legacy revenue, was $60.0 million, up 17% year over year (19% in constant currency) and comprised 89% of total revenue.

·

Total revenue was $67.2 million, up 10% year over year (12% in constant currency).

·

GAAP net income was $4.2 million, or $0.15 per share on a basic and $0.14 on a diluted basis, compared to a GAAP net loss of $2.0 million, or $(0.07) per share on a basic and diluted basis, for fiscal 2018.

·

Non-GAAP net income was $6.2 million, or $0.22 per share on a basic basis and $0.21 on a diluted basis, compared to non-GAAP net income of $1.7 million, or $0.06 per share on a basic and diluted basis, for fiscal 2018.

·

Cash provided by operations was $7.0 million, up from cash provided by operations of $6.6 million in fiscal 2018.

·

Total cash and cash equivalents, as of June 30, 2019, was $31.9 million, compared to $11.5 million as of June 30, 2018.

 

Fiscal 2019 Fourth Quarter Financial Highlights

 

·

SaaS revenue was $11.6 million, up 24% year over year (26% in constant currency).

·

Subscription revenue, which includes SaaS and legacy revenue, was $15.1 million, up 12% year over year (14% in constant currency) and comprised 90% of total revenue.

·

Total revenue was $16.8 million, up 8% year over year.

·

GAAP net income was $166,000, or $0.01 per share on a basic and diluted basis, compared to a GAAP net loss of $536,000, or $(0.02) per share on a basic and diluted basis, for Q4 2018.

·

Non-GAAP net income was $659,000, or $0.02 per share on a basic and diluted basis, compared to non-GAAP net income of $300,000, or $0.01 per share on a basic and diluted basis, for Q4 2018.

 

Fiscal 2020 Financial Guidance

 

For the fiscal year ending June 30, 2020, eGain expects full year SaaS revenue of $53.8 million to $55.4 million (on a constant currency basis), which would represent growth between 20% and 24% year over year, total revenue of $72.0 million to $73.6 million (on a constant currency basis), which would represent growth between 7% and 10% year over year and to generate non-GAAP net income of breakeven to $2.0 million, or $0.00 to $0.06 per diluted share.

 

For the first quarter of fiscal 2020, eGain expects SaaS revenue of $11.8 million to $12.1 million (on a constant currency basis), which would represent growth between 23% and 26% year over year, total revenue of $16.8 million to $17.2 million (on a constant currency basis), which would represent growth between 7% and 10% year over year and to generate non-GAAP net income of $0.5 million to $1.0 million, or $0.02 to $0.03 per diluted share.

 

 

 

 

 

1

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 analysis and for budgeting and planning purposes. Defined in the supplemental information is SaaS and legacy revenue, where legacy revenue is defined as legacy license and associated legacy support revenue that we no longer sell. 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.

 

Conference Call Information

eGain will discuss its fiscal 2019 fourth quarter and full year results today via teleconference at 2:00 p.m. Pacific Daylight Time. To access the live call, dial 888-254-3590 (US and Canada) or +1 323-994-2093 (international) and give the participant passcode 9906755. A live and archived webcast of the call will be accessible on the “Investors” section of the Company’s website at www.egain.com. In addition, a phone replay will be available approximately two hours following the end of the call and will remain available for one week. To access the call replay dial-in information, please click here.

 

About eGain

eGain customer engagement solutions deliver digital transformation for leading brands – powered by virtual assistance, AI, knowledge, and analytics. Our comprehensive suite of applications help clients deliver memorable, digital-first customer experiences in an omnichannel world. To find out more about eGain, visit http://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 are based on current expectations and include our beliefs regarding demand for our products, including, without limitation: our belief that we see positive business and customer momentum; our belief that our pipeline and the demand for our AI-powered customer engagement platform offering is strong; expected increase in growth investment,  including the partner ecosystem; and our beliefs with respect to SaaS revenue growth and net income growth for the fiscal year ending June 30, 2020 and the first quarter of fiscal 2020. The achievement or success of the matters covered by such forward-looking statements, including future financial guidance, involves risks, uncertainties and assumptions, many of which involve factors or circumstances that are beyond our control.  If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, the Company’s actual results could differ materially from the results expressed or implied by the forward-looking statements we make, including our ability to achieve our targets for the fiscal year ending June 30, 2020 and first quarter of fiscal 2020. 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; weakened global economic conditions which may adversely affect our industry, general political or destabilizing events, including war, conflict or acts of terrorism, 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 Investor Relations

Todd Kehrli or Jim Byers

Phone: 323-468-2300

Email: egan@mkr-group.com

2

eGain Corporation

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

    

June 30, 

    

June 30, 

 

 

2019 (*)

 

2018

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

31,860

 

$

11,498

Restricted cash

 

 

 7

 

 

 6

Accounts receivable, net

 

 

20,411

 

 

7,389

Costs capitalized to obtain revenue contracts, net 

 

 

740

 

 

986

Prepaid expenses

 

 

2,517

 

 

2,374

Other current assets

 

 

1,054

 

 

285

Total current assets

 

 

56,589

 

 

22,538

Property and equipment, net

 

 

525

 

 

559

Costs capitalized to obtain revenue contracts, net of current portion

 

 

1,777

 

 

891

Intangible assets, net

 

 

294

 

 

733

Goodwill

 

 

13,186

 

 

13,186

Other assets

 

 

1,383

 

 

1,715

Total assets

 

$

73,754

 

$

39,622

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

4,173

 

$

3,905

Accrued compensation

 

 

5,480

 

 

5,706

Accrued liabilities

 

 

2,353

 

 

2,285

Deferred revenue

 

 

30,688

 

 

18,364

Capital lease obligations

 

 

 —

 

 

42

Bank borrowings, net of deferred financing costs

 

 

 —

 

 

259

Total current liabilities

 

 

42,694

 

 

30,561

Deferred revenue, net of current portion

 

 

5,801

 

 

7,833

Bank borrowings, net of current portion and deferred financing costs

 

 

 —

 

 

8,941

Other long term liabilities

 

 

952

 

 

1,000

Total liabilities

 

 

49,447

 

 

48,335

Stockholders' equity (deficit):

 

 

 

 

 

 

Common stock

 

 

31

 

 

28

Additional paid-in capital

 

 

371,099

 

 

346,222

Notes receivable from stockholders

 

 

(88)

 

 

(85)

Accumulated other comprehensive loss

 

 

(1,459)

 

 

(1,618)

Accumulated deficit

 

 

(345,276)

 

 

(353,260)

Total stockholders' equity (deficit)

 

 

24,307

 

 

(8,713)

Total liabilities and stockholders' equity (deficit)

 

$

73,754

 

$

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

 

Year Ended

 

 

 

June 30, 

 

June 30, 

 

 

    

2019

    

2018

    

2019

    

2018

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscription

 

 

$

15,144

 

$

13,529

 

$

60,013

 

$

51,352

Professional services

 

 

 

1,679

 

 

2,060

 

 

7,219

 

 

9,955

Total revenue

 

 

 

16,823

 

 

15,589

 

 

67,232

 

 

61,307

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of subscription

 

 

 

4,265

 

 

3,609

 

 

14,976

 

 

13,152

Cost of professional services

 

 

 

1,502

 

 

2,277

 

 

6,865

 

 

9,184

Total cost of revenue

 

 

 

5,767

 

 

5,886

 

 

21,841

 

 

22,336

   Gross profit

 

 

 

11,056

 

 

9,703

 

 

45,391

 

 

38,971

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

 

3,593

 

 

3,931

 

 

14,369

 

 

14,711

Sales and marketing

 

 

 

4,596

 

 

4,426

 

 

17,302

 

 

17,681

General and administrative

 

 

 

2,016

 

 

2,128

 

 

8,198

 

 

7,567

Total operating expenses

 

 

 

10,205

 

 

10,485

 

 

39,869

 

 

39,959

Income (loss) from operations

 

 

 

851

 

 

(782)

 

 

5,522

 

 

(988)

Interest expense, net

 

 

 

130

 

 

(185)

 

 

(319)

 

 

(983)

Other income (expense), net

 

 

 

(13)

 

 

143

 

 

(202)

 

 

(206)

Income (loss) before income tax benefit (provision)

 

 

 

968

 

 

(824)

 

 

5,001

 

 

(2,177)

Income tax benefit (provision)

 

 

 

(802)

 

 

288

 

 

(833)

 

 

186

Net income (loss)

 

 

$

166

 

$

(536)

 

$

4,168

 

$

(1,991)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per share information:

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

$

0.01

 

$

(0.02)

 

$

0.15

 

$

(0.07)

Diluted 

 

 

$

0.01

 

$

(0.02)

 

$

0.14

 

$

(0.07)

Weighted average shares used in computation:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

30,344

 

 

27,559

 

 

28,579

 

 

27,333

Diluted 

 

 

 

31,915

 

 

27,559

 

 

30,363

 

 

27,333

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summary of stock-based compensation included in the costs and expenses above:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

$

82

 

$

63

 

$

323

 

$

323

Research and development

 

 

 

132

 

 

49

 

 

519

 

 

493

Sales and marketing

 

 

 

132

 

 

75

 

 

313

 

 

341

General and administrative

 

 

 

80

 

 

145

 

 

468

 

 

538

Total stock-based compensation

 

 

$

426

 

$

332

 

$

1,623

 

$

1,695

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summary of amortization of purchased intangibles from business combinations in the costs and expenses above:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

$

67

 

$

67

 

$

268

 

$

268

Research and development

 

 

 

 —

 

 

437

 

 

170

 

 

1,747

Total amortization of intangible assets

 

 

$

67

 

$

504

 

$

438

 

$

2,015

 

4

eGain Corporation

GAAP to Non-GAAP Reconciliation Table

(in thousands, except per share data)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

June 30, 

 

June 30, 

 

    

2019

    

2018

    

2019

    

2018

Income (loss) from operations

 

$

851

 

$

(782)

 

$

5,522

 

$

(988)

Add:

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

426

 

 

332

 

 

1,623

 

 

1,695

Amortization of intangible assets

 

 

67

 

 

504

 

 

438

 

 

2,015

Non-GAAP income from operations

 

$

1,344

 

$

54

 

$

7,583

 

$

2,722

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

June 30, 

 

June 30, 

 

 

2019

    

2018

    

2019

    

2018

Net income (loss)

 

$

166

 

$

(536)

 

$

4,168

 

$

(1,991)

Add:

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

426

 

 

332

 

 

1,623

 

 

1,695

Amortization of intangible assets

 

 

67

 

 

504

 

 

438

 

 

2,015

Non-GAAP net income

 

$

659

 

$

300

 

$

6,229

 

$

1,719

Per share information:

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.02

 

$

0.01

 

$

0.22

 

$

0.06

Diluted

 

$

0.02

 

$

0.01

 

$

0.21

 

$

0.06

Weighted-average shares used in computation:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

30,344

 

 

27,559

 

 

28,579

 

 

27,333

Diluted

 

 

31,915

 

 

29,771

 

 

30,363

 

 

27,579

 

5

eGain Corporation

Other GAAP to Non-GAAP Supplemental Financial Information

(in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended
June 30,

 

Growth Rates

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

Reported under
Topic 606

    

Topic 606
Impact

    

Excluding
Topic 606 Impact

    

Reported under
Topic 605

    

Reported under
Topic 606

    

Excluding Topic 606

 

Constant currency growth rates [1]

Revenue:

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SaaS

 

$

11,572

 

$

187

 

$

11,759

 

$

9,343

 

 
24%

 
26%

 
26%

Legacy

 

 

3,572

 

 

(116)

 

 

3,456

 

 

4,186

 

 
(15%)

 
(17%)

 
(12%)

GAAP subscription

 

 

15,144

 

 

71

 

 

15,215

 

 

13,529

 

 
12%

 
12%

 
14%

GAAP professional services

 

 

1,679

 

 

203

 

 

1,882

 

 

2,060

 

 
(18%)

 
(9%)

 
(16%)

Total GAAP revenue

 

$

16,823

 

$

274

 

$

17,097

 

$

15,589

 

 
8%

 
10%

 
10%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Revenue:

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP subscription

 

$

4,265

 

 

 

 

 

 

 

$

3,609

 

 

 

 

 

 

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

(67)

 

 

 

 

 

 

 

 

67

 

 

 

 

 

 

 

Non-GAAP subscription

 

$

4,198

 

 

 

 

 

 

 

$

3,676

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP professional services

 

$

1,502

 

 

 

 

 

 

 

$

2,277

 

 

 

 

 

 

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

(82)

 

 

 

 

 

 

 

 

63

 

 

 

 

 

 

 

Non-GAAP professional services

 

$

1,420

 

 

 

 

 

 

 

$

2,340

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP total cost of revenue

 

$

5,767

 

 

 

 

 

 

 

$

5,886

 

 

 

 

 

 

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

(82)

 

 

 

 

 

 

 

 

63

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

(67)

 

 

 

 

 

 

 

 

67

 

 

 

 

 

 

 

Non-GAAP total cost of revenue

 

$

5,618

 

 

 

 

 

 

 

$

6,016

 

 
(7%)

 

 

 
1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP subscription

 

$

10,946

 

 

 

 

 

 

 

$

9,853

 

 

 

 

 

 

 

Non-GAAP professional services

 

 

259

 

 

 

 

 

 

 

 

(280)

 

 

 

 

 

 

 

Non-GAAP gross profit

 

$

11,205

 

 

 

 

 

 

 

$

9,573

 

 
17%

 

 

 
16%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP research and development

 

$

3,593

 

 

 

 

 

 

 

$

3,931

 

 

 

 

 

 

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

(132)

 

 

 

 

 

 

 

 

(49)

 

 

 

 

 

 

 

Amortization of acquired intangible assets

 

 

 —

 

 

 

 

 

 

 

 

437

 

 

 

 

 

 

 

Non-GAAP research and development

 

$

3,461

 

 

 

 

 

 

 

$

4,319

 

 
(20%)

 

 

 
7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP sales and marketing

 

$

4,596

 

$

117

 

$

4,713

 

$

4,426

 

 

 

 

 

 

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

(132)

 

 

 

 

 

 

 

 

(75)

 

 

 

 

 

 

 

Amortization of acquired intangible assets

 

 

 —

 

 

 

 

 

 

 

 

 -

 

 

 

 

 

 

 

Non-GAAP sales and marketing

 

$

4,464

 

 

 

 

 

 

 

$

4,351

 

 
3%

 

 

 
6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP general and administrative

 

$

2,016

 

 

 

 

 

 

 

$

2,128

 

 

 

 

 

 

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

(80)

 

 

 

 

 

 

 

 

(145)

 

 

 

 

 

 

 

Amortization of acquired intangible assets

 

 

 —

 

 

 

 

 

 

 

 

 —

 

 

 

 

 

 

 

Non-GAAP general and administrative

 

$

1,936

 

 

 

 

 

 

 

$

1,983

 

 
(2%)

 

 

 
(3%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP operating expenses

 

$

10,205

 

 

 

 

 

 

 

$

10,485

 

 

 

 

 

 

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

(344)

 

 

 

 

 

 

 

 

(269)

 

 

 

 

 

 

 

Amortization of acquired intangible assets

 

 

 —

 

 

 

 

 

 

 

 

437

 

 

 

 

 

 

 

Non-GAAP operating expenses

 

$

9,861

 

 

 

 

 

 

 

$

10,653

 

 
(7%)

 

 

 
4%

 

 

[1] Constant currency growth rates presented are derived from converting the current period results for entities reporting in currencies other than U.S. Dollars into U.S. Dollars at the exchange rates in effect during the prior period presented rather than the actual exchange rates in effect during the current period.

6

 

 

eGain Corporation

Other GAAP to Non-GAAP Supplemental Financial Information

(in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended
June 30,

 

Growth Rates

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

Reported under
Topic 606

    

Topic 606
Impact

    

Excluding
Topic 606 Impact

    

Reported under
Topic 605

    

Reported under
Topic 606

    

Excluding Topic
606 Impact

 

Constant currency growth rates [1]

Revenue:

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SaaS

 

$

44,788

 

$

338

 

$

45,126

 

$

32,694

 

 
37%

 
38%

 
39%

Legacy

 

 

15,225

 

 

(232)

 

 

14,993

 

 

18,658

 

 
(18%)

 
(20%)

 
(16%)

GAAP subscription

 

 

60,013

 

 

106

 

 

60,119

 

 

51,352

 

 
17%

 
17%

 
19%

GAAP professional services

 

 

7,219

 

 

(533)

 

 

6,686

 

 

9,955

 

 
(27%)

 
(33%)

 
(26%)

Total GAAP revenue

 

$

67,232

 

$

(427)

 

$

66,805

 

$

61,307

 

 
10%

 
9%

 
12%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Revenue:

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP subscription

 

$

14,976

 

 

 

 

 

 

 

$

13,152

 

 

 

 

 

 

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

(268)

 

 

 

 

 

 

 

 

(268)

 

 

 

 

 

 

 

Non-GAAP subscription

 

$

14,708

 

 

 

 

 

 

 

$

12,884

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP professional services

 

$

6,865

 

 

 

 

 

 

 

$

9,184

 

 

 

 

 

 

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

(323)

 

 

 

 

 

 

 

 

(323)

 

 

 

 

 

 

 

Non-GAAP professional services

 

$

6,542

 

 

 

 

 

 

 

$

8,861

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP total cost of revenue

 

$

21,841

 

 

 

 

 

 

 

$

22,336

 

 

 

 

 

 

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

(323)

 

 

 

 

 

 

 

 

(323)

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

(268)

 

 

 

 

 

 

 

 

(268)

 

 

 

 

 

 

 

Non-GAAP total cost of revenue

 

$

21,250

 

 

 

 

 

 

 

$

21,745

 

 
(2%)

 

 

 
0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP subscription

 

$

45,305

 

 

 

 

 

 

 

$

38,468

 

 

 

 

 

 

 

Non-GAAP professional services

 

 

678

 

 

 

 

 

 

 

 

1,094

 

 

 

 

 

 

 

Non-GAAP gross profit

 

$

45,983

 

 

 

 

 

 

 

$

39,562

 

 
16%

 

 

 
18%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP research and development

 

$

14,369

 

 

 

 

 

 

 

$

14,711

 

 

 

 

 

 

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

(519)

 

 

 

 

 

 

 

 

(493)

 

 

 

 

 

 

 

Amortization of acquired intangible assets

 

 

(170)

 

 

 

 

 

 

 

 

(1,747)

 

 

 

 

 

 

 

Non-GAAP research and development

 

$

13,680

 

 

 

 

 

 

 

$

12,471

 

 
10%

 

 

 
13%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP sales and marketing

 

$

17,302

 

$

555

 

$

17,857

 

$

17,681

 

 

 

 

 

 

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

(313)

 

 

 

 

 

 

 

 

(341)

 

 

 

 

 

 

 

Amortization of acquired intangible assets

 

 

 —

 

 

 

 

 

 

 

 

 —

 

 

 

 

 

 

 

Non-GAAP sales and marketing

 

$

16,989

 

 

 

 

 

 

 

$

17,340

 

 
(2%)

 

 

 
0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP general and administrative

 

$

8,198

 

 

 

 

 

 

 

$

7,567

 

 

 

 

 

 

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

(468)

 

 

 

 

 

 

 

 

(538)

 

 

 

 

 

 

 

Amortization of acquired intangible assets

 

 

 —

 

 

 

 

 

 

 

 

 —

 

 

 

 

 

 

 

Non-GAAP general and administrative

 

$

7,730

 

 

 

 

 

 

 

$

7,029

 

 
10%

 

 

 
11%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP operating expenses

 

$

39,869

 

 

 

 

 

 

 

$

39,959

 

 

 

 

 

 

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

(1,300)

 

 

 

 

 

 

 

 

(2,626)

 

 

 

 

 

 

 

Amortization of acquired intangible assets

 

 

(170)

 

 

 

 

 

 

 

 

(1,747)

 

 

 

 

 

 

 

Non-GAAP operating expenses

 

$

38,399

 

 

 

 

 

 

 

$

35,586

 

 
8%

 

 

 
6%

 

[1] Constant currency growth rates presented are derived from converting the current period results for entities reporting in currencies other than U.S. Dollars into U.S. Dollars at the exchange rates in effect during the prior period presented rather than the actual exchange rates in effect during the current period.

7