Tableau Software, Inc. | ||
(Exact name of registrant as specified in its charter) | ||
Delaware | 001-35925 | 47-0945740 |
(State or other jurisdiction | (Commission File Number) | (IRS Employer Identification No.) |
of incorporation) | ||
1621 North 34th Street Seattle, Washington | 98103 | |
(Address of principal executive offices) | (Zip Code) | |
Registrant's telephone number, including area code: (206) 633-3400 | ||
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Emerging growth company | o |
Tableau Software, Inc. | |
/s/ Keenan M. Conder | |
Keenan M. Conder | |
Executive Vice President, General Counsel and Corporate Secretary |
• | ASC 606 total revenue was $290.6 million. |
• | Total annual recurring revenue was $762.6 million, up 45% year over year. |
• | Subscription annual recurring revenue was $362.4 million, up 160% year over year. |
• | ASC 606 diluted GAAP net loss per share was $0.26. |
• | ASC 606 diluted non-GAAP net income per share was $0.47. |
• | ASC 605 total revenue was $239.6 million, compared to a guided range of $236.0 million to $246.0 million as provided during the Company's earnings call on August 2, 2018. |
• | 81% ratable license bookings mix, up from 67% in the second quarter of 2018. |
• | ASC 605 diluted GAAP net loss per share was $0.86. |
• | ASC 605 diluted non-GAAP net loss per share was $0.07, compared to a guided range of $0.09 to $0.15 non-GAAP net loss per share as provided during the Company's earnings call on August 2, 2018. |
• | Hosted Tableau's 11th annual global customer conference in New Orleans with more than 17,000 customers and partners in attendance. |
• | Presented Ask Data on stage at our global customer conference. Ask Data leverages natural language processing to enable people to ask questions about their data in an intuitive, conversational manner. |
• | Announced plans to expand platform capabilities with a new add-on product, Tableau Prep Conductor, which enables organizations to schedule and manage self-service data preparation at scale. |
• | Expanded partnerships with new product integrations with AWS, Informatica and Unifi and launched Dashboard Extensions with several partners including Mapbox and DataRobot. |
• | Announced plans to expand the global partner program with new certifications and trainings as well as support for bundled offers to better serve joint customers. |
• | Announced a commitment to grant $100 million in software, training and financial support through the Tableau Foundation through 2025. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenues | |||||||||||||||
License | $ | 138,127 | $ | 99,424 | $ | 384,768 | $ | 299,964 | |||||||
Maintenance and services | 152,453 | 115,493 | 434,308 | 327,739 | |||||||||||
Total revenues | 290,580 | 214,917 | 819,076 | 627,703 | |||||||||||
Cost of revenues | |||||||||||||||
License | 5,230 | 3,265 | 13,810 | 9,474 | |||||||||||
Maintenance and services | 29,549 | 26,664 | 88,619 | 73,775 | |||||||||||
Total cost of revenues (1) | 34,779 | 29,929 | 102,429 | 83,249 | |||||||||||
Gross profit | 255,801 | 184,988 | 716,647 | 544,454 | |||||||||||
Operating expenses | |||||||||||||||
Sales and marketing (1) | 142,129 | 123,842 | 424,685 | 366,020 | |||||||||||
Research and development (1) | 97,939 | 84,494 | 285,477 | 249,863 | |||||||||||
General and administrative (1) | 30,959 | 25,697 | 93,055 | 76,017 | |||||||||||
Total operating expenses | 271,027 | 234,033 | 803,217 | 691,900 | |||||||||||
Operating loss | (15,226 | ) | (49,045 | ) | (86,570 | ) | (147,446 | ) | |||||||
Other income, net | 4,381 | 3,677 | 12,709 | 8,931 | |||||||||||
Loss before income tax expense | (10,845 | ) | (45,368 | ) | (73,861 | ) | (138,515 | ) | |||||||
Income tax expense | 10,492 | 1,185 | 6,014 | 5,207 | |||||||||||
Net loss | $ | (21,337 | ) | $ | (46,553 | ) | $ | (79,875 | ) | $ | (143,722 | ) | |||
Net loss per share: | |||||||||||||||
Basic | $ | (0.26 | ) | $ | (0.59 | ) | $ | (0.97 | ) | $ | (1.83 | ) | |||
Diluted | $ | (0.26 | ) | $ | (0.59 | ) | $ | (0.97 | ) | $ | (1.83 | ) | |||
Weighted average shares used to compute net loss per share: | |||||||||||||||
Basic | 83,264 | 79,440 | 82,191 | 78,463 | |||||||||||
Diluted | 83,264 | 79,440 | 82,191 | 78,463 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Cost of revenues | $ | 3,488 | $ | 2,885 | $ | 9,774 | $ | 8,252 | |||||||
Sales and marketing | 22,357 | 18,603 | 64,522 | 55,221 | |||||||||||
Research and development | 29,926 | 27,337 | 81,920 | 76,500 | |||||||||||
General and administrative | 6,175 | 5,489 | 19,805 | 15,650 |
September 30, 2018 | December 31, 2017 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 639,254 | $ | 627,878 | |||
Short-term investments | 317,505 | 226,787 | |||||
Accounts receivable, net | 187,424 | 203,366 | |||||
Prepaid expenses and other current assets | 136,828 | 30,514 | |||||
Income taxes receivable | 1,363 | 673 | |||||
Total current assets | 1,282,374 | 1,089,218 | |||||
Long-term investments | 63,551 | 148,364 | |||||
Property and equipment, net | 91,265 | 106,753 | |||||
Goodwill | 42,530 | 35,083 | |||||
Deferred income taxes | 4,007 | 5,287 | |||||
Other long-term assets | 46,271 | 14,090 | |||||
Total assets | $ | 1,529,998 | $ | 1,398,795 | |||
Liabilities and stockholders' equity | |||||||
Current liabilities | |||||||
Accounts payable | $ | 3,817 | $ | 4,448 | |||
Accrued compensation and employee-related benefits | 96,091 | 96,390 | |||||
Other accrued liabilities | 66,313 | 37,722 | |||||
Income taxes payable | 7,547 | 4,743 | |||||
Deferred revenue | 328,187 | 419,426 | |||||
Total current liabilities | 501,955 | 562,729 | |||||
Deferred revenue | 15,851 | 28,058 | |||||
Other long-term liabilities | 52,447 | 54,385 | |||||
Total liabilities | 570,253 | 645,172 | |||||
Stockholders' equity | |||||||
Common stock | 8 | 8 | |||||
Additional paid-in capital | 1,290,077 | 1,168,563 | |||||
Accumulated other comprehensive loss | (11,914 | ) | (11,991 | ) | |||
Accumulated deficit | (318,426 | ) | (402,957 | ) | |||
Total stockholders' equity | 959,745 | 753,623 | |||||
Total liabilities and stockholders' equity | $ | 1,529,998 | $ | 1,398,795 |
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Operating activities | |||||||
Net loss | $ | (79,875 | ) | $ | (143,722 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities | |||||||
Depreciation and amortization expense | 27,783 | 34,174 | |||||
Amortization (accretion) on investments, net | (32 | ) | 162 | ||||
Stock-based compensation expense | 176,021 | 155,623 | |||||
Deferred income taxes | (3,810 | ) | (226 | ) | |||
Changes in operating assets and liabilities | |||||||
Accounts receivable, net | 14,232 | 80,030 | |||||
Prepaid expenses and other assets | (71,671 | ) | (138 | ) | |||
Income taxes receivable | (728 | ) | (297 | ) | |||
Deferred revenue | 4,666 | 45,109 | |||||
Accounts payable and accrued liabilities | 38,477 | 9,452 | |||||
Income taxes payable | 2,866 | 26 | |||||
Net cash provided by operating activities | 107,929 | 180,193 | |||||
Investing activities | |||||||
Purchases of property and equipment | (13,983 | ) | (43,179 | ) | |||
Business combination, net of cash acquired | (10,947 | ) | (23,966 | ) | |||
Purchases of investments | (206,454 | ) | (198,144 | ) | |||
Maturities of investments | 199,885 | — | |||||
Sales of investments | 99 | — | |||||
Net cash used in investing activities | (31,400 | ) | (265,289 | ) | |||
Financing activities | |||||||
Proceeds from issuance of common stock | 26,864 | 24,305 | |||||
Repurchases of common stock | (90,019 | ) | (59,986 | ) | |||
Net cash used in financing activities | (63,155 | ) | (35,681 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (1,998 | ) | 3,005 | ||||
Net increase (decrease) in cash and cash equivalents | 11,376 | (117,772 | ) | ||||
Cash and cash equivalents | |||||||
Beginning of period | 627,878 | 908,717 | |||||
End of period | $ | 639,254 | $ | 790,945 |
Three Months Ended September 30, | |||||||||||||||
2018 | 2017 | ||||||||||||||
As Reported (ASC 606) | Impacts from Adoption | Without Adoption (ASC 605) | As Reported (ASC 605) | ||||||||||||
Revenues | |||||||||||||||
License | $ | 138,127 | $ | (20,095 | ) | $ | 118,032 | $ | 99,424 | ||||||
Maintenance and services | 152,453 | (30,894 | ) | 121,559 | 115,493 | ||||||||||
Total revenues | 290,580 | (50,989 | ) | 239,591 | 214,917 | ||||||||||
Cost of revenues | |||||||||||||||
License | 5,230 | (121 | ) | 5,109 | 3,265 | ||||||||||
Maintenance and services | 29,549 | 148 | 29,697 | 26,664 | |||||||||||
Total cost of revenues | 34,779 | 27 | 34,806 | 29,929 | |||||||||||
Gross profit | 255,801 | (51,016 | ) | 204,785 | 184,988 | ||||||||||
Operating expenses | |||||||||||||||
Sales and marketing | 142,129 | 7,828 | 149,957 | 123,842 | |||||||||||
Research and development | 97,939 | — | 97,939 | 84,494 | |||||||||||
General and administrative | 30,959 | — | 30,959 | 25,697 | |||||||||||
Total operating expenses | 271,027 | 7,828 | 278,855 | 234,033 | |||||||||||
Operating loss | (15,226 | ) | (58,844 | ) | (74,070 | ) | (49,045 | ) | |||||||
Other income, net | 4,381 | 32 | 4,413 | 3,677 | |||||||||||
Loss before income tax expense | (10,845 | ) | (58,812 | ) | (69,657 | ) | (45,368 | ) | |||||||
Income tax expense | 10,492 | (8,852 | ) | 1,640 | 1,185 | ||||||||||
Net loss | $ | (21,337 | ) | $ | (49,960 | ) | $ | (71,297 | ) | $ | (46,553 | ) | |||
Net loss per share: | |||||||||||||||
Basic | $ | (0.26 | ) | $ | (0.86 | ) | $ | (0.59 | ) | ||||||
Diluted | $ | (0.26 | ) | $ | (0.86 | ) | $ | (0.59 | ) | ||||||
Weighted average shares used to compute net loss per share: | |||||||||||||||
Basic | 83,264 | 83,264 | 79,440 | ||||||||||||
Diluted | 83,264 | 83,264 | 79,440 |
Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | ||||||||||||||
As Reported (ASC 606) | Impacts from Adoption | Without Adoption (ASC 605) | As Reported (ASC 605) | ||||||||||||
Revenues | |||||||||||||||
License | $ | 384,768 | $ | (38,489 | ) | $ | 346,279 | $ | 299,964 | ||||||
Maintenance and services | 434,308 | (73,386 | ) | 360,922 | 327,739 | ||||||||||
Total revenues | 819,076 | (111,875 | ) | 707,201 | 627,703 | ||||||||||
Cost of revenues | |||||||||||||||
License | 13,810 | (264 | ) | 13,546 | 9,474 | ||||||||||
Maintenance and services | 88,619 | 315 | 88,934 | 73,775 | |||||||||||
Total cost of revenues | 102,429 | 51 | 102,480 | 83,249 | |||||||||||
Gross profit | 716,647 | (111,926 | ) | 604,721 | 544,454 | ||||||||||
Operating expenses | |||||||||||||||
Sales and marketing | 424,685 | 18,787 | 443,472 | 366,020 | |||||||||||
Research and development | 285,477 | — | 285,477 | 249,863 | |||||||||||
General and administrative | 93,055 | — | 93,055 | 76,017 | |||||||||||
Total operating expenses | 803,217 | 18,787 | 822,004 | 691,900 | |||||||||||
Operating loss | (86,570 | ) | (130,713 | ) | (217,283 | ) | (147,446 | ) | |||||||
Other income, net | 12,709 | 112 | 12,821 | 8,931 | |||||||||||
Loss before income tax expense | (73,861 | ) | (130,601 | ) | (204,462 | ) | (138,515 | ) | |||||||
Income tax expense | 6,014 | (586 | ) | 5,428 | 5,207 | ||||||||||
Net loss | $ | (79,875 | ) | $ | (130,015 | ) | $ | (209,890 | ) | $ | (143,722 | ) | |||
Net loss per share: | |||||||||||||||
Basic | $ | (0.97 | ) | $ | (2.55 | ) | $ | (1.83 | ) | ||||||
Diluted | $ | (0.97 | ) | $ | (2.55 | ) | $ | (1.83 | ) | ||||||
Weighted average shares used to compute net loss per share: | |||||||||||||||
Basic | 82,191 | 82,191 | 78,463 | ||||||||||||
Diluted | 82,191 | 82,191 | 78,463 |
September 30, 2018 | December 31, 2017 | ||||||||||||||
As Reported (ASC 606) | Impacts from Adoption | Without Adoption (ASC 605) | As Reported (ASC 605) | ||||||||||||
Assets | |||||||||||||||
Current assets | |||||||||||||||
Cash and cash equivalents | $ | 639,254 | $ | — | $ | 639,254 | $ | 627,878 | |||||||
Short-term investments | 317,505 | — | 317,505 | 226,787 | |||||||||||
Accounts receivable, net | 187,424 | — | 187,424 | 203,366 | |||||||||||
Prepaid expenses and other current assets | 136,828 | (103,176 | ) | 33,652 | 30,514 | ||||||||||
Income taxes receivable | 1,363 | — | 1,363 | 673 | |||||||||||
Total current assets | 1,282,374 | (103,176 | ) | 1,179,198 | 1,089,218 | ||||||||||
Long-term investments | 63,551 | — | 63,551 | 148,364 | |||||||||||
Property and equipment, net | 91,265 | — | 91,265 | 106,753 | |||||||||||
Goodwill | 42,530 | — | 42,530 | 35,083 | |||||||||||
Deferred income taxes | 4,007 | 1,485 | 5,492 | 5,287 | |||||||||||
Other long-term assets | 46,271 | (29,940 | ) | 16,331 | 14,090 | ||||||||||
Total assets | $ | 1,529,998 | $ | (131,631 | ) | $ | 1,398,367 | $ | 1,398,795 | ||||||
Liabilities and stockholders' equity | |||||||||||||||
Current liabilities | |||||||||||||||
Accounts payable | $ | 3,817 | $ | — | $ | 3,817 | $ | 4,448 | |||||||
Accrued compensation and employee-related benefits | 96,091 | — | 96,091 | 96,390 | |||||||||||
Other accrued liabilities | 66,313 | — | 66,313 | 37,722 | |||||||||||
Income taxes payable | 7,547 | (4,381 | ) | 3,166 | 4,743 | ||||||||||
Deferred revenue | 328,187 | 154,435 | 482,622 | 419,426 | |||||||||||
Total current liabilities | 501,955 | 150,054 | 652,009 | 562,729 | |||||||||||
Deferred revenue | 15,851 | 12,693 | 28,544 | 28,058 | |||||||||||
Other long-term liabilities | 52,447 | (833 | ) | 51,614 | 54,385 | ||||||||||
Total liabilities | 570,253 | 161,914 | 732,167 | 645,172 | |||||||||||
Stockholders' equity | |||||||||||||||
Common stock | 8 | — | 8 | 8 | |||||||||||
Additional paid-in capital | 1,290,077 | — | 1,290,077 | 1,168,563 | |||||||||||
Accumulated other comprehensive loss | (11,914 | ) | 876 | (11,038 | ) | (11,991 | ) | ||||||||
Accumulated deficit | (318,426 | ) | (294,421 | ) | (612,847 | ) | (402,957 | ) | |||||||
Total stockholders' equity | 959,745 | (293,545 | ) | 666,200 | 753,623 | ||||||||||
Total liabilities and stockholders' equity | $ | 1,529,998 | $ | (131,631 | ) | $ | 1,398,367 | $ | 1,398,795 |
Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | ||||||||||||||
As Reported (ASC 606) | Impacts from Adoption | Without Adoption (ASC 605) | As Reported (ASC 605) | ||||||||||||
Operating activities | |||||||||||||||
Net loss | $ | (79,875 | ) | $ | (130,015 | ) | $ | (209,890 | ) | $ | (143,722 | ) | |||
Adjustments to reconcile net loss to net cash provided by operating activities | |||||||||||||||
Depreciation and amortization expense | 27,783 | — | 27,783 | 34,174 | |||||||||||
Amortization (accretion) on investments, net | (32 | ) | — | (32 | ) | 162 | |||||||||
Stock-based compensation expense | 176,021 | — | 176,021 | 155,623 | |||||||||||
Deferred income taxes | (3,810 | ) | 3,673 | (137 | ) | (226 | ) | ||||||||
Changes in operating assets and liabilities | |||||||||||||||
Accounts receivable, net | 14,232 | — | 14,232 | 80,030 | |||||||||||
Prepaid expenses and other assets | (71,671 | ) | 68,002 | (3,669 | ) | (138 | ) | ||||||||
Income taxes receivable | (728 | ) | — | (728 | ) | (297 | ) | ||||||||
Deferred revenue | 4,666 | 62,974 | 67,640 | 45,109 | |||||||||||
Accounts payable and accrued liabilities | 38,477 | — | 38,477 | 9,452 | |||||||||||
Income taxes payable | 2,866 | (4,381 | ) | (1,515 | ) | 26 | |||||||||
Net cash provided by operating activities | 107,929 | 253 | 108,182 | 180,193 | |||||||||||
Investing activities | |||||||||||||||
Purchases of property and equipment | (13,983 | ) | — | (13,983 | ) | (43,179 | ) | ||||||||
Business combination, net of cash acquired | (10,947 | ) | — | (10,947 | ) | (23,966 | ) | ||||||||
Purchases of investments | (206,454 | ) | — | (206,454 | ) | (198,144 | ) | ||||||||
Maturities of investments | 199,885 | — | 199,885 | — | |||||||||||
Sales of investments | 99 | — | 99 | — | |||||||||||
Net cash used in investing activities | (31,400 | ) | — | (31,400 | ) | (265,289 | ) | ||||||||
Financing activities | |||||||||||||||
Proceeds from issuance of common stock | 26,864 | — | 26,864 | 24,305 | |||||||||||
Repurchases of common stock | (90,019 | ) | — | (90,019 | ) | (59,986 | ) | ||||||||
Net cash used in financing activities | (63,155 | ) | — | (63,155 | ) | (35,681 | ) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (1,998 | ) | (253 | ) | (2,251 | ) | 3,005 | ||||||||
Net increase (decrease) in cash and cash equivalents | 11,376 | — | 11,376 | (117,772 | ) | ||||||||||
Cash and cash equivalents | |||||||||||||||
Beginning of period | 627,878 | — | 627,878 | 908,717 | |||||||||||
End of period | $ | 639,254 | $ | — | $ | 639,254 | $ | 790,945 |
Three Months Ended September 30, | |||||||||||||||
2018 | 2017 | ||||||||||||||
As Reported (ASC 606) | Impacts from Adoption | Without Adoption (ASC 605) | As Reported (ASC 605) | ||||||||||||
Reconciliation of gross profit to non-GAAP gross profit: | |||||||||||||||
Gross profit | $ | 255,801 | $ | (51,016 | ) | $ | 204,785 | $ | 184,988 | ||||||
Excluding: Stock-based compensation expense attributable to cost of revenues | 3,488 | — | 3,488 | 2,885 | |||||||||||
Excluding: Amortization of acquired intangible assets | 516 | — | 516 | 264 | |||||||||||
Non-GAAP gross profit | $ | 259,805 | $ | (51,016 | ) | $ | 208,789 | $ | 188,137 | ||||||
Reconciliation of gross margin to non-GAAP gross margin: | |||||||||||||||
Gross margin | 88.0 | % | 85.5 | % | 86.1 | % | |||||||||
Excluding: Stock-based compensation expense attributable to cost of revenues | 1.2 | % | 1.5 | % | 1.3 | % | |||||||||
Excluding: Amortization of acquired intangible assets | 0.2 | % | 0.2 | % | 0.1 | % | |||||||||
Non-GAAP gross margin | 89.4 | % | 87.1 | % | 87.5 | % | |||||||||
Reconciliation of operating loss to non-GAAP operating income (loss): | |||||||||||||||
Operating loss | $ | (15,226 | ) | $ | (58,844 | ) | $ | (74,070 | ) | $ | (49,045 | ) | |||
Excluding: Stock-based compensation expense | 61,946 | — | 61,946 | 54,314 | |||||||||||
Excluding: Amortization of acquired intangible assets | 516 | — | 516 | 264 | |||||||||||
Non-GAAP operating income (loss) | $ | 47,236 | $ | (58,844 | ) | $ | (11,608 | ) | $ | 5,533 | |||||
Reconciliation of operating margin to non-GAAP operating margin: | |||||||||||||||
Operating margin | (5.2 | )% | (30.9 | )% | (22.8 | )% | |||||||||
Excluding: Stock-based compensation expense | 21.3 | % | 25.9 | % | 25.3 | % | |||||||||
Excluding: Amortization of acquired intangible assets | 0.2 | % | 0.2 | % | 0.1 | % | |||||||||
Non-GAAP operating margin | 16.3 | % | (4.8 | )% | 2.6 | % |
Three Months Ended September 30, | |||||||||||||||
2018 | 2017 | ||||||||||||||
As Reported (ASC 606) | Impacts from Adoption | Without Adoption (ASC 605) | As Reported (ASC 605) | ||||||||||||
Reconciliation of net loss to non-GAAP net income (loss): | |||||||||||||||
Net loss | $ | (21,337 | ) | $ | (49,960 | ) | $ | (71,297 | ) | $ | (46,553 | ) | |||
Excluding: Stock-based compensation expense | 61,946 | — | 61,946 | 54,314 | |||||||||||
Excluding: Amortization of acquired intangible assets | 516 | — | 516 | 264 | |||||||||||
Income tax adjustments | 168 | 2,911 | 3,079 | (1,578 | ) | ||||||||||
Non-GAAP net income (loss) | $ | 41,293 | $ | (47,049 | ) | $ | (5,756 | ) | $ | 6,447 | |||||
Weighted average shares used to compute non-GAAP basic net income (loss) per share | 83,264 | 83,264 | 79,440 | ||||||||||||
Effect of potentially dilutive shares: stock awards | 4,376 | — | 4,398 | ||||||||||||
Weighted average shares used to compute non-GAAP diluted net income (loss) per share | 87,640 | 83,264 | 83,838 | ||||||||||||
Non-GAAP net income (loss) per share: | |||||||||||||||
Basic | $ | 0.50 | $ | (0.07 | ) | $ | 0.08 | ||||||||
Diluted | $ | 0.47 | $ | (0.07 | ) | $ | 0.08 |
Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | ||||||||||||||
As Reported (ASC 606) | Impacts from Adoption | Without Adoption (ASC 605) | As Reported (ASC 605) | ||||||||||||
Reconciliation of gross profit to non-GAAP gross profit: | |||||||||||||||
Gross profit | $ | 716,647 | $ | (111,926 | ) | $ | 604,721 | $ | 544,454 | ||||||
Excluding: Stock-based compensation expense attributable to cost of revenues | 9,774 | — | 9,774 | 8,252 | |||||||||||
Excluding: Amortization of acquired intangible assets | 1,269 | — | 1,269 | 454 | |||||||||||
Non-GAAP gross profit | $ | 727,690 | $ | (111,926 | ) | $ | 615,764 | $ | 553,160 | ||||||
Reconciliation of gross margin to non-GAAP gross margin: | |||||||||||||||
Gross margin | 87.5 | % | 85.5 | % | 86.7 | % | |||||||||
Excluding: Stock-based compensation expense attributable to cost of revenues | 1.2 | % | 1.4 | % | 1.3 | % | |||||||||
Excluding: Amortization of acquired intangible assets | 0.2 | % | 0.2 | % | 0.1 | % | |||||||||
Non-GAAP gross margin | 88.8 | % | 87.1 | % | 88.1 | % | |||||||||
Reconciliation of operating loss to non-GAAP operating income (loss): | |||||||||||||||
Operating loss | $ | (86,570 | ) | $ | (130,713 | ) | $ | (217,283 | ) | $ | (147,446 | ) | |||
Excluding: Stock-based compensation expense | 176,021 | — | 176,021 | 155,623 | |||||||||||
Excluding: Amortization of acquired intangible assets | 1,269 | — | 1,269 | 454 | |||||||||||
Non-GAAP operating income (loss) | $ | 90,720 | $ | (130,713 | ) | $ | (39,993 | ) | $ | 8,631 | |||||
Reconciliation of operating margin to non-GAAP operating margin: | |||||||||||||||
Operating margin | (10.6 | )% | (30.7 | )% | (23.5 | )% | |||||||||
Excluding: Stock-based compensation expense | 21.5 | % | 24.9 | % | 24.8 | % | |||||||||
Excluding: Amortization of acquired intangible assets | 0.2 | % | 0.2 | % | 0.1 | % | |||||||||
Non-GAAP operating margin | 11.1 | % | (5.7 | )% | 1.4 | % |
Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | ||||||||||||||
As Reported (ASC 606) | Impacts from Adoption | Without Adoption (ASC 605) | As Reported (ASC 605) | ||||||||||||
Reconciliation of net loss to non-GAAP net income (loss): | |||||||||||||||
Net loss | $ | (79,875 | ) | $ | (130,015 | ) | $ | (209,890 | ) | $ | (143,722 | ) | |||
Excluding: Stock-based compensation expense | 176,021 | — | 176,021 | 155,623 | |||||||||||
Excluding: Amortization of acquired intangible assets | 1,269 | — | 1,269 | 454 | |||||||||||
Income tax adjustments | (14,672 | ) | 25,534 | 10,862 | (62 | ) | |||||||||
Non-GAAP net income (loss) | $ | 82,743 | $ | (104,481 | ) | $ | (21,738 | ) | $ | 12,293 | |||||
Weighted average shares used to compute non-GAAP basic net income (loss) per share | 82,191 | 82,191 | 78,463 | ||||||||||||
Effect of potentially dilutive shares: stock awards | 4,092 | — | 3,981 | ||||||||||||
Weighted average shares used to compute non-GAAP diluted net income (loss) per share | 86,283 | 82,191 | 82,444 | ||||||||||||
Non-GAAP net income (loss) per share: | |||||||||||||||
Basic | $ | 1.01 | $ | (0.26 | ) | $ | 0.16 | ||||||||
Diluted | $ | 0.96 | $ | (0.26 | ) | $ | 0.15 |
Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | ||||||||||||||
As Reported (ASC 606) | Impacts from Adoption | Without Adoption (ASC 605) | As Reported (ASC 605) | ||||||||||||
Reconciliation of net cash provided by operating activities to free cash flow: | |||||||||||||||
Net cash provided by operating activities | $ | 107,929 | $ | 253 | $ | 108,182 | $ | 180,193 | |||||||
Less: Purchases of property and equipment | (13,983 | ) | — | (13,983 | ) | (43,179 | ) | ||||||||
Free cash flow | $ | 93,946 | $ | 253 | $ | 94,199 | $ | 137,014 | |||||||
Net cash used in investing activities | $ | (31,400 | ) | $ | — | $ | (31,400 | ) | $ | (265,289 | ) | ||||
Net cash used in financing activities | $ | (63,155 | ) | $ | — | $ | (63,155 | ) | $ | (35,681 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | $ | (1,998 | ) | $ | (253 | ) | $ | (2,251 | ) | $ | 3,005 |
Q1`17 | Q2`17 | Q3`17 | Q4`17 | FY 2017 | Q1`18 | Q2`18 | Q3`18 | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Customer metrics | ||||||||||||||||||||||||
Customer accounts (1) | 57,000+ | 61,000+ | 65,000+ | 70,000+ | 70,000+ | 74,000+ | 78,000+ | 82,000+ | ||||||||||||||||
Customer accounts added in period (1) | 3,300+ | 4,000+ | 4,100+ | 4,700+ | 16,100+ | 3,900+ | 4,100+ | 3,800+ | ||||||||||||||||
Deals greater than $100,000 (2) | 294 | 372 | 337 | 590 | 1,593 | 301 | 436 | 378 | ||||||||||||||||
Customer accounts that purchased greater than $1 million during the quarter (1,2) | 10 | 15 | 13 | 27 | 13 | 22 | 23 | |||||||||||||||||
Annual recurring revenue metrics | ||||||||||||||||||||||||
Total annual recurring revenue (3) | $ | 439,001 | $ | 483,578 | $ | 526,211 | $ | 596,244 | $ | 596,244 | $ | 641,946 | $ | 697,700 | $ | 762,641 | ||||||||
Subscription annual recurring revenue (4) | $ | 71,950 | $ | 103,538 | $ | 139,210 | $ | 195,488 | $ | 195,488 | $ | 237,533 | $ | 291,292 | $ | 362,360 | ||||||||
Geographic revenue metrics - ASC 606 | ||||||||||||||||||||||||
United States and Canada | — | — | — | — | — | $ | 167,799 | $ | 196,992 | $ | 207,166 | |||||||||||||
International | — | — | — | — | — | $ | 78,408 | $ | 85,297 | $ | 83,414 | |||||||||||||
United States and Canada as % of total revenue | — | — | — | — | — | 68 | % | 70 | % | 71 | % | |||||||||||||
International as % of total revenue | — | — | — | — | — | 32 | % | 30 | % | 29 | % | |||||||||||||
Geographic revenue metrics - ASC 605 | ||||||||||||||||||||||||
United States and Canada | $ | 141,496 | $ | 146,102 | $ | 150,059 | $ | 168,116 | $ | 605,773 | $ | 154,443 | $ | 169,234 | $ | 169,552 | ||||||||
International | $ | 58,410 | $ | 66,778 | $ | 64,858 | $ | 81,240 | $ | 271,286 | $ | 69,601 | $ | 74,332 | $ | 70,039 | ||||||||
United States and Canada as % of total revenue | 71 | % | 69 | % | 70 | % | 67 | % | 69 | % | 69 | % | 69 | % | 71 | % | ||||||||
International as % of total revenue | 29 | % | 31 | % | 30 | % | 33 | % | 31 | % | 31 | % | 31 | % | 29 | % | ||||||||
Additional revenue metrics - ASC 606 | ||||||||||||||||||||||||
Remaining performance obligations (5) | — | — | — | — | $ | 99,580 | $ | 114,523 | $ | 138,498 | $ | 191,942 | ||||||||||||
Additional revenue metrics - ASC 605 | ||||||||||||||||||||||||
Ratable revenue as % of total revenue (6) | 54 | % | 56 | % | 63 | % | 60 | % | 59 | % | 72 | % | 72 | % | 80 | % | ||||||||
Ratable license revenue as % of total license revenue (7) | 19 | % | 23 | % | 34 | % | 34 | % | 28 | % | 54 | % | 56 | % | 72 | % | ||||||||
Services revenues as a % of maintenance and services revenue (8) | 12 | % | 13 | % | 12 | % | 13 | % | 13 | % | 11 | % | 12 | % | 12 | % | ||||||||
Bookings metrics - ASC 605 | ||||||||||||||||||||||||
Ratable bookings as % of total bookings (2) | 55 | % | 61 | % | 65 | % | 70 | % | 64 | % | 72 | % | 76 | % | 83 | % | ||||||||
Ratable license bookings as % of total license bookings(2) | 26 | % | 37 | % | 45 | % | 51 | % | 41 | % | 59 | % | 67 | % | 81 | % | ||||||||
Other metrics | ||||||||||||||||||||||||
Worldwide employees | 3,193 | 3,305 | 3,418 | 3,489 | 3,489 | 3,663 | 3,896 | 4,101 |