EX-99.01 2 d529296dex9901.htm EX-99.01 EX-99.01

Exhibit 99.01

Imperva Announces First Quarter 2013 Financial Results

 

   

Total revenue of $28.6 million during the first quarter, up 33% year-over-year

 

   

First quarter services revenue growth of 52% was driven by the 205% increase in subscription revenue

 

   

New customers increased 66% year-over-year to 148 during the first quarter

 

   

GAAP EPS loss of $0.25; Non-GAAP EPS loss of $0.13

 

   

Total deferred revenue at March 31, 2013 increased 33% year-over-year to $46.6 million

Redwood Shores, Calif. – May 2, 2013Imperva, Inc. (NYSE: IMPV), a pioneer and leader of a new category of business security solutions for critical applications and high-value business data in the data center, today announced financial results for the first quarter ended March 31, 2013.

“The investments being made to our global sales and support infrastructure are beginning to pay off, evidenced by the 66% year-over-year increase in new customers during the first quarter,” stated Shlomo Kramer, President and Chief Executive Officer of Imperva. “Our results highlight the underlying strength of our technology, our comprehensive, fully-integrated solution, and our global footprint as we accelerated our investments in the business to take advantage of the demand we are seeing worldwide. Looking forward, we see numerous growth opportunities to expand our geographic reach and introduce additional products to enhance our offering and extend our leadership position.”

First Quarter 2013 Financial Highlights

 

   

Revenue: Total revenue for the first quarter of 2013 was $28.6 million, an increase of 33% compared to $21.5 million in the first quarter of 2012. Within total revenue, product revenue was $14.2 million, an increase of 17% compared to the first quarter of 2012. Services revenue increased 52% year-over-year to $14.4 million and accounted for 50% of total revenue, up from 44% in the first quarter of 2012. Within services revenue, overall subscription revenue grew 205% to $2.0 million, compared to the first quarter of 2012. Combined product and subscriptions revenue, a leading indicator of the strength of our business, grew 27% to $16.2 million, compared to the first quarter of 2012.

 

   

Operating Profit (Loss): Operating loss as reported in accordance with U.S. generally accepted accounting principles (GAAP) was $(6.0) million for the first quarter compared to a loss of $(3.2) million during the first quarter in 2012. GAAP results included stock-based compensation expense of $2.9 million for the first quarter of 2013 and $0.7 million for the first quarter of 2012. Non-GAAP operating loss for the first quarter was $(3.1) million, compared to a loss of $(2.5) million during the same period in 2012, excluding the above mentioned charges.

 

   

Net Profit (Loss): GAAP net loss attributable to Imperva stockholders for the first quarter was $(6.1) million, or $(0.25) per share based on 23.9 million weighted average diluted shares outstanding. This compares to GAAP net loss attributable to Imperva stockholders of $(3.3) million, or $(0.15) per share based on 22.3 million weighted average shares outstanding in the prior-year period.


Non-GAAP net loss attributable to Imperva stockholders for the first quarter of 2013 was $(3.2) million, or $(0.13) per share based on 23.9 million weighted average diluted shares outstanding, excluding the above mentioned charges. This compares to non-GAAP net loss attributable to Imperva stockholders of $(2.6) million, or $(0.12) per share based on 22.3 million weighted average diluted shares outstanding in the prior-year period.

Both GAAP and non-GAAP profit and loss per share attributable to Imperva stockholders for the first quarter ended March 31, 2013 adjust for the loss attributable to Imperva’s non-controlling interest in Incapsula.

 

   

Balance Sheet: As of March 31, 2013, Imperva had cash, cash equivalents and investments of $109.9 million. Total deferred revenue of $46.6 million increased 33% compared to $35.2 million as of March 31, 2012.

First Quarter and Recent Operating Highlights

 

   

During the first quarter of 2013, Imperva added 148 new customers, up 66% compared to the first quarter of last year. Imperva now has over 2,400 customers in more than 60 countries around the world.

 

   

During the first quarter of 2013, Imperva booked 64 deals with a value over $100,000, compared to 57 deals in the first quarter of last year.

 

   

Imperva announced the release of SecureSphere 10.0, unveiled ThreatRadar Community Defense, the first cross-site information security intelligence service and enriched its File and Database Security products with SecureSphere Directory Services Monitoring (DSM), which provides the ability to audit, alert and report changes made in Active Directory.

 

   

Imperva announced that it extended the fraud prevention capabilities of the Imperva SecureSphere Web Application Firewall and ThreatRadar Fraud Prevention to include integration with ReputationManager from iovation, a provider of device reputation protection against online fraud and abuse.

 

   

Imperva announced it was named to CRN’s 2013 Partner Program Guide and was awarded a 5-Star partner rating.

Business Outlook

The following forward-looking statements reflect expectations as of May 2, 2013. Results may be materially different and could be affected by the factors detailed in this press release and in recent Imperva SEC filings.

Second Quarter Expectations – Ending June 30, 2013

Imperva expects total revenue for the second quarter of 2013 to be in the range of $31.0 million to $31.5 million, representing growth in the range of 26% to 28% compared to the same period in 2012. The company expects in the second quarter of 2013 non-GAAP gross margins of approximately 80%. Further, Imperva expects in the second quarter of 2013 non-GAAP operating loss to be in the range of $(0.5) million to $(1.0) million and non-GAAP net loss attributable to Imperva stockholders to be in the range of $(0.75) million to $(1.25) million, or a loss of $(0.03) to $(0.05) per share, which excludes stock-based compensation expense.


Full Year Expectations –Ending December 31, 2013

Imperva expects total revenue for 2013 to be in the range of $133.0 million to $137.0 million, or up 28% to 31% compared to 2012. Imperva expects 2013 non-GAAP gross margins of approximately 80%. Further, the company expects 2013 non-GAAP operating profit to be in the range of $1.0 million to $3.0 million and non-GAAP net profit attributable to Imperva stockholders to be in the range of $0.5 million to $2.5 million, or $0.02 to $0.09 per share, which excludes stock-based compensation expense. Imperva expects capital expenditures for the full year to be in the range of $2.5 million to $3.5 million. Finally, the company expects to continue to generate positive cash flows from operations in 2013.

Quarterly Conference Call

Imperva will host a conference call today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to review the company’s financial results for the first quarter ended March 31, 2013. To access this call, dial 888.801.6497 for the U.S. and Canada or 913.312.1403 for international callers with conference ID #6284652. A live webcast of the conference call will be accessible from the investors page of Imperva’s website at www.imperva.com, and a recording will be archived and accessible at www.imperva.com. An audio replay of this conference call will also be available through May 16, 2013, by dialing 877.870.5176 for the U.S. and Canada, or 858.384.5517 for international callers and entering passcode #6284652.

Non-GAAP Financial Measures

Imperva reports all financial information required in accordance with U.S. generally accepted accounting principles (GAAP). To supplement the Imperva unaudited condensed consolidated financial statements presented in accordance with GAAP, Imperva uses certain non-GAAP measures of financial performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the results of Imperva operations as determined in accordance with GAAP. The non-GAAP financial measures used by Imperva include historical non-GAAP net loss and non-GAAP basic and diluted loss per share. These non-GAAP financial measures exclude stock-based compensation from the Imperva unaudited condensed consolidated statement of operations.

For a description of these items, including the reasons why management adjusts for them, and reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section of the accompanying tables titled “Use of Non-GAAP Financial Information” as well as the related tables that precede it. Imperva may consider whether other significant non-recurring items that arise in the future should also be excluded in calculating the non-GAAP financial measures it uses.

Imperva believes that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding the performance of Imperva by excluding certain items that may not be indicative of the company’s core business, operating results or future outlook. Imperva management uses, and believes that investors benefit from referring to, these non-GAAP financial measures in assessing operating results of Imperva, as well as when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate comparisons of the performance of Imperva to prior periods.


Forward Looking Statements

This press release contains forward-looking statements, including without limitation those regarding Imperva’s “Business Outlook” (“Second Quarter Expectations – Ending June 30, 2013” and “Full Year Expectations – Ending December 31, 2013”); Imperva’s belief that quarterly and annual combined product and subscriptions revenue are a leading indicator of the strength of its business; the company’s belief that the investments being made to its global sales and support infrastructure will pay off; Imperva’s beliefs regarding worldwide demand and that its investments in its business, the underlying strength of its technology, its comprehensive, fully-integrated solution, and its global footprint will enable it to take advantage of such demand; and the company’s belief that there are numerous growth opportunities to expand its geographic reach and introduce additional products to enhance its offering and extend its leadership position. These forward-looking statements are subject to material risks and uncertainties that may cause actual results to differ substantially from expectations. Investors should consider important risk factors, which include: the risk that demand for our business security solutions may not increase and may decrease; the risk that we may not timely introduce new products or versions of our products and that they may not be accepted by the market; the risk that competitors may be perceived by customers to be better positioned to help handle business security threats and protect their businesses from major risk; the risk that the growth of Imperva may be lower than anticipated; and other risks detailed under the caption “Risk Factors” in the company’s Form 10-K filed with the Securities and Exchange Commission, or the SEC, on March 15, 2013 and the company’s other SEC filings. You can obtain copies of the company’s SEC filings on the SEC’s website at www.sec.gov.

The foregoing information represents the company’s outlook only as of the date of this press release, and Imperva undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, new developments or otherwise.

About Imperva

Imperva is a pioneer and leader of a new category of business security solutions for critical applications and high-value business data in the data center. Imperva’s award-winning solutions protect against data theft, insider abuse, and fraud while streamlining regulatory compliance by monitoring and controlling data usage and business transactions across the data center, from storage in a database or on a file server to consumption through applications. With over 2,400 end-user customers in more than 60 countries and thousands of organizations protected through cloud-based deployments, securing your business with Imperva puts you in the company of the world’s leading organizations. For more information, visit www.imperva.com, follow us on Twitter or visit our blog.

© 2013 Imperva, Inc. All rights reserved. Imperva and the Imperva logo are trademarks of Imperva, Inc.

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IMPERVA, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(On a GAAP basis)

(In thousands, except per share amounts)

(Unaudited)

 

     For the Three Months Ended  
     March 31,     March 31,  
     2013     2012  

Net revenue:

    

Products and license

   $ 14,154      $ 12,052   

Services

     14,431        9,466   
  

 

 

   

 

 

 

Total net revenue

     28,585        21,518   

Cost of revenue(1):

    

Products and license

     1,876        1,854   

Services

     4,415        2,733   
  

 

 

   

 

 

 

Total cost of revenue

     6,291        4,587   
  

 

 

   

 

 

 

Gross profit

     22,294        16,931   

Operating expenses(1):

    

Research and development

     6,358        4,993   

Sales and marketing

     17,547        11,596   

General and administrative

     4,383        3,493   
  

 

 

   

 

 

 

Total operating expenses

     28,288        20,082   
  

 

 

   

 

 

 

Loss from operations

     (5,994     (3,151

Other expense, net

     (47     (70
  

 

 

   

 

 

 

Loss before provision for income taxes

     (6,041     (3,221

Provision for income taxes

     154        153   
  

 

 

   

 

 

 

Net loss

     (6,195     (3,374

Add: Loss attributable to noncontrolling interest

     136        103   
  

 

 

   

 

 

 

Net loss attributable to Imperva, Inc. stockholders

   $ (6,059   $ (3,271
  

 

 

   

 

 

 

Net loss per share of common stock attributable to Imperva, Inc. stockholders, basic and diluted

   $ (0.25   $ (0.15
  

 

 

   

 

 

 

Shares used in computing net loss per share of common stock, basic and diluted

     23,905        22,304   
  

 

 

   

 

 

 

(1) Stock-based compensation expense as included in above:

    

Cost of revenue

   $ 211      $ 55   

Research and development

     667        127   

Sales and marketing

     1,334        261   

General and administrative

     641        225   
  

 

 

   

 

 

 

Total stock-based compensation expense

   $ 2,853      $ 668   
  

 

 

   

 

 

 


IMPERVA, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

     As of
March 31,
2013
    As of
December 31,
2012
 

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 66,154      $ 59,201   

Short-term investments

     43,724        43,126   

Restricted cash

     596        591   

Accounts receivable, net

     24,299        35,576   

Inventory

     315        328   

Deferred tax assets

     609        597   

Prepaid expenses and other current assets

     5,083        4,356   
  

 

 

   

 

 

 

Total current assets

     140,780        143,775   

Property and equipment, net

     5,400        5,515   

Severance pay fund

     3,307        3,150   

Restricted cash

     753        753   

Other assets

     772        764   
  

 

 

   

 

 

 

Total assets

   $ 151,012      $ 153,957   
  

 

 

   

 

 

 

Liabilities and stockholders’ equity

    

Current liabilities:

    

Accounts payable

   $ 2,783      $ 3,789   

Accrued compensation and benefits

     10,060        9,258   

Accrued and other current liabilities

     3,547        4,323   

Deferred revenue

     32,999        33,609   
  

 

 

   

 

 

 

Total current liabilities

     49,389        50,979   

Other liabilities

     2,491        2,638   

Deferred revenue

     13,650        12,682   

Accrued severance pay

     3,695        3,427   
  

 

 

   

 

 

 

Total liabilities

     69,225        69,726   

Stockholders’ equity:

    

Common stock

     2        2   

Additional paid-in capital

     161,670        157,989   

Accumulated deficit

     (79,576     (73,517

Accumulated other comprehensive income (loss)

     931        861   
  

 

 

   

 

 

 

Total Imperva, Inc. stockholders’ equity

     83,027        85,335   

Noncontrolling interest

     (1,240     (1,104
  

 

 

   

 

 

 

Total stockholders’ equity

     81,787        84,231   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 151,012      $ 153,957   
  

 

 

   

 

 

 


IMPERVA, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

     For the Three Months Ended  
     March 31,     March 31,  
     2013     2012  

Cash flows from operating activities:

    

Net loss

   $ (6,195   $ (3,374

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

    

Depreciation and amortization

     626        411   

Stock-based compensation

     2,853        668   

Amortization of premiums/accretion of discounts on short-term investments

     186        76   

Changes in operating assets and liabilities:

    

Accounts receivable, net

     11,277        6,280   

Inventory

     13        117   

Prepaid expenses and other assets

     (598     (14

Accounts payable

     (1,006     (1,114

Accrued compensation and benefits

     802        (925

Accrued and other liabilities

     (714     (1,359

Severance pay, net

     111        326   

Deferred revenue

     358        2,226   

Deferred tax assets

     (12     (15

Other

     (10     (4
  

 

 

   

 

 

 

Net cash provided by operating activities

     7,691        3,299   

Cash flows from investing activities:

    

Purchase of short-term investments

     (18,400     (34,903

Proceeds from sales/maturities of short-term investments

     17,631        925   

Net purchases of property and equipment

     (511     (244

Change in other assets

     —           (300

Change in restricted cash

     (5     100   
  

 

 

   

 

 

 

Net cash used in investing activities

     (1,285     (34,422

Cash flows from financing activities:

    

Proceeds from issuance of common stock

     630        103   
  

 

 

   

 

 

 

Net cash provided by financing activities

     630        103   

Effect of exchange rate changes on cash

     (83     (37
  

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     6,953        (31,057

Cash and cash equivalents at beginning of period

   $ 59,201      $ 96,025   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 66,154      $ 64,968   
  

 

 

   

 

 

 


IMPERVA, INC. AND SUBSIDIARIES

(Reconciliation of GAAP to Non-GAAP Measures)

(In thousands, except per share amounts)

(Unaudited)

 

     For the Three Months Ended  
     March 31,     March 31,  
     2013     2012  

GAAP operating loss

   $ (5,994   $ (3,151

Plus:

    

Stock-based compensation expense

     2,853        668   
  

 

 

   

 

 

 

Non-GAAP operating loss

   $ (3,141   $ (2,483
  

 

 

   

 

 

 

GAAP net loss attributable to Imperva, Inc. stockholders

   $ (6,059   $ (3,271

Plus:

    

Stock-based compensation expense

     2,853        668   
  

 

 

   

 

 

 

Non-GAAP net loss

   $ (3,206   $ (2,603
  

 

 

   

 

 

 

Weighted average shares outstanding, basic and diluted

     23,905        22,304   

Non-GAAP net loss, basic and diluted

   $ (0.13   $ (0.12


Use of Non-GAAP Financial Information

In addition to the reasons stated above, which are generally applicable to each of the items Imperva excludes from its non-GAAP financial measures, Imperva believes it is appropriate to exclude or give effect to certain items for the following reasons:

Stock-Based Compensation: When evaluating the performance of its consolidated results, Imperva does not consider stock-based compensation charges. Likewise, the Imperva management team excludes stock-based compensation expense from its operating plans. In contrast, the Imperva management team is held accountable for cash-based compensation and such amounts are included in its operating plans. Further, when considering the impact of equity award grants, Imperva places a greater emphasis on overall stockholder dilution rather than the accounting charges associated with such grants.

Imperva excludes stock based compensation charges from its non-GAAP financial measures primarily because they are non cash expenses that it does not consider part of ongoing operating results when assessing the performance of its business, and the exclusion of these expenses facilitates the comparison of results and business outlook for future periods with results for prior periods in order to better understand the long term performance of its business.

Investor Relations Contact Information

Seth Potter

646.277.1230

IR@imperva.com

Seth.Potter@icrinc.com