0001104659-18-030247.txt : 20180503 0001104659-18-030247.hdr.sgml : 20180503 20180503160303 ACCESSION NUMBER: 0001104659-18-030247 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20180503 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20180503 DATE AS OF CHANGE: 20180503 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Paylocity Holding Corp CENTRAL INDEX KEY: 0001591698 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 464066644 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-36348 FILM NUMBER: 18803687 BUSINESS ADDRESS: STREET 1: 3850 N. WILKE ROAD CITY: ARLINGTON HEIGHTS STATE: IL ZIP: 60004 BUSINESS PHONE: 800-520-2687 MAIL ADDRESS: STREET 1: 3850 N. WILKE ROAD CITY: ARLINGTON HEIGHTS STATE: IL ZIP: 60004 8-K 1 a18-12635_18k.htm 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 


 

FORM 8-K

 

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): May 3, 2018

 

PAYLOCITY HOLDING CORPORATION

(Exact name of registrant as specified in charter)

 

Delaware

 

001-36348

 

46-4066644

(State or Other Jurisdiction of
Incorporation)

 

(Commission File Number)

 

(I.R.S. Employer Identification
Number)

 

3850 N. Wilke Road

Arlington Heights, Illinois 60004

(Address of principal executive offices, including zip code)

 

(847) 463-3200

(Registrant’s telephone number, including area code)

 

Not Applicable

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

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))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

o  Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

 

 

 



 

Item 2.02 Results of Operations and Financial Condition.

 

On May 3, 2018, Paylocity Holding Corporation (the “Company”) issued a press release announcing financial results for the three month period ended March 31, 2018.  The press release contains forward-looking statements regarding the Company, and includes cautionary statements identifying important factors that could cause actual results to differ materially from those anticipated.

 

The press release issued May 3, 2018 is furnished herewith as Exhibit 99.1. The information in this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liability of that Section, nor shall such information be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as otherwise stated in such filing.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit No.

 

Description

99.1

 

Press Release issued by Paylocity Holding Corporation dated May 3, 2018.

 

2



 

EXHIBIT INDEX

 

Exhibit No.

 

Description

99.1

 

Press Release issued by Paylocity Holding Corporation dated May 3, 2018.

 

3



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

PAYLOCITY HOLDING CORPORATION

 

 

 

 

 

 

Date: May 3, 2018

By:

/s/ Toby J. Williams

 

 

Toby J. Williams

 

 

Chief Financial Officer

 

4


EX-99.1 2 a18-12635_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

Paylocity Announces Third Quarter Fiscal Year 2018 Financial Results

 

·                  Q3 2018 Total Revenue of $113.4 million, up 26% year-over-year

·                  Q3 2018 Recurring Revenue of $108.6 million, up 26% year-over-year

 

Arlington Heights, IL. — May 3, 2018 — Paylocity Holding Corporation (Nasdaq: PCTY), a cloud-based provider of payroll and human capital management software solutions, today announced financial results for the third quarter of fiscal year 2018, which ended March 31, 2018.

 

“We had a strong third quarter with total revenue growth of 26% while also driving improved leverage across all of our key financial metrics,” said Steve Beauchamp, Chief Executive Officer of Paylocity. “The third quarter is traditionally the busiest time of the year for our Operations teams and I was pleased with our ability to work proactively with our clients to ensure year-end tasks were completed timely and accurately. We also completed the acquisition of third-party benefits administrator BeneFLEX in the quarter, which will allow us to expand our product portfolio and provide additional solutions to our clients, prospects and the insurance broker community.”

 



 

Third Quarter Fiscal 2018 Financial Highlights

 

Revenue:

 

·                  Total revenue was $113.4 million, an increase of 26% from the third quarter of fiscal year 2017.

 

·                  Total recurring revenue was $108.6 million, representing 96% of total revenue and an increase of 26% from the third quarter of fiscal year 2017.

 

Operating Income:

 

·                  GAAP operating income was $20.5 million, compared to an operating income of $14.9 million in the third quarter of fiscal year 2017.

 

·                  Non-GAAP operating income was $28.7 million, compared to non-GAAP operating income of $21.7 million in the third quarter of fiscal year 2017.

 

Net Income:

 

·                  GAAP net income was $39.2 million, which includes a non-cash income tax benefit of $18.5 million, primarily related to the release of substantially all of the valuation allowance against deferred tax assets. This compares to a net income of $14.8 million for the third quarter of fiscal year 2017. Net income per share was $0.71 for the third quarter of fiscal year 2018 based on 55.0 million diluted weighted average common shares outstanding. Net income per share was $0.27 for the third quarter of fiscal year 2017, based on 54.0 million diluted weighted average common shares outstanding.

 

Adjusted EBITDA:

 

·                  Adjusted EBITDA, a non-GAAP measure, was $35.8 million compared to Adjusted EBITDA of $26.8 million in the third quarter of fiscal year 2017.

 



 

Balance Sheet and Cash Flow:

 

·                  Cash and cash equivalents totaled $129.5 million at the end of the quarter.

 

·                  Cash flow from operations for the third quarter of fiscal year 2018 was $35.2 million compared to $27.9 million for the third quarter of fiscal year 2017.

 

A reconciliation of GAAP to non-GAAP financial measures has been provided in this press release, including the accompanying tables.  An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

 

Business Outlook

 

Based on information available as of May 3, 2018, Paylocity is issuing guidance for the fourth quarter and full fiscal year 2018 as indicated below.

 

Fourth Quarter 2018:

 

·                  Total revenue is expected to be in the range of $92.6 million to $93.6 million.

·                  Adjusted EBITDA is expected to be in the range of $14.0 million to $15.0 million.

 

Fiscal Year 2018:

 

·                  Total revenue is expected to be in the range of $373.5 million to $374.5 million.

·                  Adjusted EBITDA is expected to be in the range of $79.6 million to $80.6 million.

 

We are unable to reconcile forward-looking non-GAAP financial measures to their directly comparable GAAP financial measures because the information which is needed to complete a reconciliation is unavailable at this time without unreasonable effort.

 

Conference Call Details

 

Paylocity will host a conference call to discuss its third quarter fiscal year 2018 results at 4:00 p.m. Central Time today (5:00 Eastern Time). A live audio webcast of the conference call, together with detailed financial information, can be accessed through the company’s Investor Relations Web site at http://www.paylocity.com. Participants who choose to call in to the conference call can do so by dialing (855) 226-3021 or (315) 625-6892, passcode 5298897. A replay of the call will be available and archived via webcast at www.paylocity.com.

 



 

About Paylocity

 

Paylocity is a provider of cloud-based payroll and human capital management, or HCM, software solutions. Paylocity’s comprehensive and easy-to-use solutions enable its clients to manage their workforces more effectively.  Paylocity’s solutions help drive strategic human capital decision-making and improve employee engagement by enhancing the human resource, payroll and finance capabilities of its clients. For more information, visit www.paylocity.com.

 

Source: Paylocity

 

Non-GAAP Financial Measures

 

The company uses certain non-GAAP financial measures in this release, including Adjusted EBITDA, adjusted gross profit, adjusted recurring gross profit, non-GAAP operating income (loss), non-GAAP sales and marketing, non-GAAP total research and development and non-GAAP general and administrative. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. We define Adjusted EBITDA as net income (loss) before interest expense, income tax expense (benefit), and depreciation and amortization expense, adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, and acquisition-related costs. Adjusted gross profit and adjusted recurring gross profit are adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and amortization of capitalized internal-use software costs. Non-GAAP operating income (loss) is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, the amortization of acquired intangibles and acquisition-related costs. Non-GAAP sales and marketing expense is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises. Non-GAAP total research and development is adjusted for capitalized internal-use software costs and to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises.  Non-GAAP general and administrative expense is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, the amortization of acquired intangibles and acquisition-related costs. Please note that other companies may define their non-GAAP financial measures differently than we do. Management presents certain non-GAAP financial measures in this release because it considers them to be important supplemental measures of performance. Management uses these non-GAAP financial measures for planning purposes, including analysis of the company’s performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management believes that these non-GAAP financial measures provide additional insight for analysts and investors in evaluating the company’s financial and operational performance. Management also intends to provide these non-GAAP financial measures as part of the company’s future earnings discussions and, therefore, the inclusion of the non-GAAP financial measures should provide consistency in the company’s financial reporting. Non-GAAP financial measures have limitations as an analytical tool.

 



 

Investors are encouraged to review the reconciliation of the non-GAAP measures to their most directly comparable GAAP measures provided in this release.

 

Acquisition-related costs: Includes legal, accounting and other professional fees as well as various other costs directly associated with acquisitions.

 

Safe Harbor/forward looking statements

 

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included herein regarding Paylocity’s future operations, ability to scale its business, future financial position and performance, future revenues, projected costs, prospects, plans and objectives of management are forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “will,” “would,” “seek” and similar expressions (or the negative of these terms) are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include, among other things, statements about management’s estimates regarding future revenues and financial performance and other statements about management’s beliefs, intentions or goals.  Paylocity may not actually achieve the expectations disclosed in the forward-looking statements, and you should not place undue reliance on Paylocity’s forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results or events to differ materially from the expectations disclosed in the forward-looking statements, including, but not limited to, risks related to regulatory, legislative and judicial uncertainty in Paylocity’s markets, including the potential repeal or replacement of the Affordable Care Act; Paylocity’s ability to retain existing clients and to attract new clients to enter into subscriptions for its services; Paylocity’s ability to sell new products and retain subscriptions for its existing products to its new and existing clients; the challenges associated with a growing company’s ability to effectively service clients in a dynamic and competitive market; challenges associated with expanding and evolving a sales organization to effectively address new geographies and products and services; Paylocity’s reliance on and ability to expand its referral network of third parties; difficulties associated with accurately forecasting revenue and appropriately planning expenses; challenges with managing growth effectively; difficulties in forecasting Paylocity’s tax position, including but not limited to the assessment of the need for a valuation allowance against its deferred tax position; potential adverse tax consequences to Paylocity as a result of the recently enacted Federal Tax Cut and Jobs Act; continued acceptance of SaaS as an effective method for delivery of payroll and HCM solutions; Paylocity’s ability to protect and defend its intellectual property; the risk that Paylocity’s security measures are compromised or the unauthorized access to customer data; unexpected events in the market for Paylocity’s solutions; changes in the competitive environment in Paylocity’s industry and the markets in which it operates; adverse changes in general economic or market conditions; changes in the employment rates of Paylocity’s clients and the resultant impact on revenue; and other risks and potential factors that could affect Paylocity’s business and financial results identified in Paylocity’s filings with the Securities and Exchange Commission (the “SEC”), including its 10-K filed with the SEC on August 11, 2017.  Additional information will also be set forth in Paylocity’s future quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings that Paylocity makes with the SEC.  These forward-looking statements represent Paylocity’s expectations as of the date of this press release. Subsequent events may cause these expectations to change, and Paylocity disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.

 



 

PAYLOCITY HOLDING CORPORATION

Unaudited Consolidated Balance Sheets

(in thousands, except per share data)

 

 

 

June 30,

 

March 31,

 

 

 

2017

 

2018

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

103,468

 

$

129,530

 

Accounts receivable, net

 

2,040

 

3,384

 

Prepaid expenses and other

 

14,879

 

16,921

 

 

 

 

 

 

 

Total current assets before funds held for clients

 

120,387

 

149,835

 

Funds held for clients

 

942,459

 

1,347,522

 

 

 

 

 

 

 

Total current assets

 

1,062,846

 

1,497,357

 

Long-term prepaid expenses

 

1,535

 

1,022

 

Capitalized internal-use software, net

 

17,394

 

20,002

 

Property and equipment, net

 

40,756

 

50,380

 

Intangible assets, net

 

8,907

 

13,457

 

Goodwill

 

6,003

 

9,754

 

Deferred income tax assets, net

 

 

18,906

 

Total assets

 

$

1,137,441

 

$

1,610,878

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

2,046

 

$

2,371

 

Accrued expenses

 

30,301

 

35,474

 

 

 

 

 

 

 

Total current liabilities before client fund obligations

 

32,347

 

37,845

 

Client fund obligations

 

942,459

 

1,347,522

 

 

 

 

 

 

 

Total current liabilities

 

974,806

 

1,385,367

 

Deferred rent

 

14,621

 

20,963

 

Deferred income tax liabilities, net

 

401

 

 

 

 

 

 

 

 

Total liabilities

 

$

989,828

 

$

1,406,330

 

Stockholders’ equity:

 

 

 

 

 

Preferred stock, $0.001 par value, 5,000 authorized, no shares issued and outstanding at June 30, 2017 and March 31, 2018

 

$

 

$

 

Common stock, $0.001 par value, 155,000 shares authorized at June 30, 2017 and March 31, 2018; 51,738 shares issued and outstanding at June 30, 2017 and 52,649 shares issued and outstanding at March 31, 2018

 

52

 

53

 

Additional paid-in capital

 

192,837

 

209,791

 

Accumulated deficit

 

(45,276

)

(5,125

)

Accumulated other comprehensive loss

 

 

(171

)

Total stockholders’ equity

 

$

147,613

 

$

204,548

 

Total liabilities and stockholders’ equity

 

$

1,137,441

 

$

1,610,878

 

 



 

PAYLOCITY HOLDING CORPORATION

Unaudited Consolidated Statements of Operations and Comprehensive Income

(in thousands, except per share data)

 

 

 

Three months ended
March 31,

 

Nine months ended
March 31,

 

 

 

2017

 

2018

 

2017

 

2018

 

Revenues:

 

 

 

 

 

 

 

 

 

Recurring fees

 

$

85,314

 

$

105,857

 

$

212,581

 

$

264,443

 

Interest income on funds held for clients

 

1,041

 

2,719

 

2,489

 

6,119

 

Total recurring revenues

 

86,355

 

108,576

 

215,070

 

270,562

 

Implementation services and other

 

3,918

 

4,831

 

8,879

 

10,349

 

Total revenues

 

90,273

 

113,407

 

223,949

 

280,911

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

Recurring revenues

 

22,436

 

26,982

 

62,255

 

76,711

 

Implementation services and other

 

9,646

 

11,670

 

28,569

 

33,740

 

Total cost of revenues

 

32,082

 

38,652

 

90,824

 

110,451

 

Gross profit

 

58,191

 

74,755

 

133,125

 

170,460

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Sales and marketing

 

21,242

 

26,004

 

56,988

 

68,782

 

Research and development

 

6,969

 

9,058

 

21,492

 

27,227

 

General and administrative

 

15,100

 

19,228

 

43,915

 

53,338

 

Total operating expenses

 

43,311

 

54,290

 

122,395

 

149,347

 

Operating income

 

14,880

 

20,465

 

10,730

 

21,113

 

Other income (expense)

 

(47

)

215

 

(4

)

465

 

Income before income taxes

 

14,833

 

20,680

 

10,726

 

21,578

 

Income tax expense (benefit)

 

32

 

(18,497

)

164

 

(18,573

)

Net income

 

$

14,801

 

$

39,177

 

$

10,562

 

$

40,151

 

Other comprehensive loss, net of tax

 

 

 

 

 

 

 

 

 

Unrealized losses on securities, net of tax

 

 

(61

)

 

(171

)

Total other comprehensive loss, net of tax

 

 

(61

)

 

(171

)

Comprehensive income

 

$

14,801

 

$

39,116

 

$

10,562

 

$

39,980

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.29

 

$

0.74

 

$

0.21

 

$

0.77

 

Diluted

 

$

0.27

 

$

0.71

 

$

0.20

 

$

0.73

 

Weighted-average shares used in computing net income per share:

 

 

 

 

 

 

 

 

 

Basic

 

51,447

 

52,615

 

51,353

 

52,334

 

Diluted

 

54,002

 

55,030

 

53,987

 

54,717

 

 

Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises are included in the above line items:

 

 

 

Three months ended
March 31,

 

Nine months ended
March 31,

 

 

 

2017

 

2018

 

2017

 

2018

 

Cost of revenue - recurring

 

$

514

 

$

763

 

$

1,719

 

$

2,253

 

Cost of revenue - implementation services and other

 

373

 

394

 

1,094

 

1,228

 

Sales and marketing

 

1,750

 

1,593

 

5,044

 

5,856

 

Research and development

 

831

 

983

 

2,608

 

3,036

 

General and administrative

 

2,950

 

3,959

 

8,798

 

10,820

 

Total

 

$

6,418

 

$

7,692

 

$

19,263

 

$

23,193

 

 



 

PAYLOCITY HOLDING CORPORATION

Unaudited Consolidated Statements of Cash Flows

(in thousands)

 

 

 

Nine Months Ended
March 31,

 

 

 

2017

 

2018

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

10,562

 

$

40,151

 

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

 

 

 

 

 

Stock-based compensation expense

 

18,695

 

21,891

 

Depreciation and amortization expense

 

14,685

 

20,640

 

Deferred income tax expense (benefit)

 

127

 

(18,603

)

Provision for doubtful accounts

 

47

 

149

 

Net accretion of discounts and amortization of premiums on available-for-sale securities

 

 

(234

)

Net realized losses on sales of available-for-sales securities

 

 

2

 

Loss on disposal of equipment

 

225

 

160

 

Changes in operating assets and liabilities:

 

 

 

 

 

Accounts receivable

 

(543

)

(1,278

)

Prepaid expenses and other

 

(1,802

)

(1,678

)

Accounts payable

 

(145

)

429

 

Accrued expenses

 

1,484

 

1,762

 

Tenant improvement allowance

 

 

5,952

 

Net cash provided by operating activities

 

43,335

 

69,343

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

Purchases of available-for-sale securities from funds held for clients

 

 

(126,223

)

Proceeds from sales and maturities of available-for-sale securities from funds held for clients

 

 

51,292

 

Net change in funds held for clients’ cash and cash equivalents

 

69,281

 

(328,462

)

Capitalized internal-use software costs

 

(10,073

)

(11,442

)

Purchases of property and equipment

 

(13,916

)

(9,374

)

Lease allowances used for tenant improvements

 

 

(7,086

)

Acquisition of business, net of cash acquired

 

 

(8,346

)

Net cash provided by (used in) investing activities

 

45,292

 

(439,641

)

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

Net change in client fund obligations

 

(69,281

)

403,375

 

Proceeds from employee stock purchase plan

 

1,823

 

2,045

 

Taxes paid related to net share settlement of equity awards

 

(6,215

)

(9,060

)

Net cash provided by (used in) financing activities

 

(73,673

)

396,360

 

Net Change in Cash and Cash Equivalents

 

14,954

 

26,062

 

Cash and Cash Equivalents—Beginning of Period

 

86,496

 

103,468

 

Cash and Cash Equivalents—End of Period

 

$

101,450

 

$

129,530

 

Supplemental Disclosure of Non-Cash Investing and Financing Activities

 

 

 

 

 

Purchase of property and equipment and internal —use software, accrued but not paid

 

$

1,714

 

$

2,832

 

Supplemental Disclosure of Cash Flow Information

 

 

 

 

 

Cash paid for income taxes, net of refunds

 

$

41

 

$

17

 

 



 

Paylocity Holding Corporation

Reconciliation of GAAP to non-GAAP Financial Measures

(In thousands except per share data)

 

 

 

Three months
Ended
March 31,

 

Nine months
Ended
March 31,

 

 

 

2017

 

2018

 

2017

 

2018

 

Reconciliation from gross profit to adjusted gross profit:

 

 

 

 

 

 

 

 

 

Gross profit

 

$

58,191

 

$

74,755

 

$

133,125

 

$

170,460

 

Amortization of capitalized internal-use software costs

 

2,573

 

3,655

 

6,207

 

10,358

 

Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises

 

887

 

1,157

 

2,813

 

3,481

 

Adjusted gross profit

 

$

61,651

 

$

79,567

 

$

142,145

 

$

184,299

 

 

 

 

Three months
Ended
March 31,

 

Nine months
Ended
March 31,

 

 

 

2017

 

2018

 

2017

 

2018

 

Reconciliation from total recurring revenues to adjusted recurring gross profit:

 

 

 

 

 

 

 

 

 

Total recurring revenues

 

$

86,355

 

$

108,576

 

$

215,070

 

$

270,562

 

Cost of recurring revenues

 

22,436

 

26,982

 

62,255

 

76,711

 

Recurring gross profit

 

63,919

 

81,594

 

152,815

 

193,851

 

Amortization of capitalized internal-use software costs

 

2,573

 

3,655

 

6,207

 

10,358

 

Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises

 

514

 

763

 

1,719

 

2,253

 

Adjusted recurring gross profit

 

$

67,006

 

$

86,012

 

$

160,741

 

$

206,462

 

 

 

 

Three months
Ended
March 31,

 

Nine months
Ended
March 31,

 

 

 

2017

 

2018

 

2017

 

2018

 

Reconciliation from operating income to non-GAAP operating income:

 

 

 

 

 

 

 

 

 

Operating income

 

$

14,880

 

$

20,465

 

$

10,730

 

$

21,113

 

Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises

 

6,418

 

7,692

 

19,263

 

23,193

 

Amortization of acquired intangibles

 

380

 

358

 

1,142

 

1,076

 

Acquisition-related costs

 

 

191

 

 

191

 

Non-GAAP operating income

 

$

21,678

 

$

28,706

 

$

31,135

 

$

45,573

 

 

 

 

Three months
Ended
March 31,

 

Nine months
Ended
March 31,

 

 

 

2017

 

2018

 

2017

 

2018

 

Reconciliation from net income to Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

Net income

 

$

14,801

 

$

39,177

 

$

10,562

 

$

40,151

 

Interest expense

 

 

 

 

 

Income tax expense (benefit)

 

32

 

(18,497

)

164

 

(18,573

)

Depreciation and amortization expense

 

5,582

 

7,202

 

14,685

 

20,640

 

EBITDA

 

20,415

 

27,882

 

25,411

 

42,218

 

Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises

 

6,418

 

7,692

 

19,263

 

23,193

 

Acquisition-related costs

 

 

191

 

 

191

 

Adjusted EBITDA

 

$

26,833

 

$

35,765

 

$

44,674

 

$

65,602

 

 

 

 

Three months
Ended
March 31,

 

Nine months
Ended
March 31,

 

 

 

2017

 

2018

 

2017

 

2018

 

Reconciliation of non-GAAP Sales and Marketing:

 

 

 

 

 

 

 

 

 

Sales and Marketing

 

$

21,242

 

$

26,004

 

$

56,988

 

$

68,782

 

Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises

 

1,750

 

1,593

 

5,044

 

5,856

 

Non-GAAP Sales and Marketing

 

$

19,492

 

$

24,411

 

$

51,944

 

$

62,926

 

 

 

 

Three months
Ended
March 31,

 

Nine months
Ended
March 31,

 

 

 

2017

 

2018

 

2017

 

2018

 

Reconciliation of non-GAAP Total Research and Development:

 

 

 

 

 

 

 

 

 

Research and Development

 

$

6,969

 

$

9,058

 

$

21,492

 

$

27,227

 

Capitalized internal-use software costs

 

3,794

 

4,296

 

10,073

 

11,442

 

Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises

 

831

 

983

 

2,608

 

3,036

 

Non-GAAP Total Research and Development

 

$

9,932

 

$

12,371

 

$

28,957

 

$

35,633

 

 

 

 

Three months
Ended
March 31,

 

Nine months
Ended
March 31,

 

 

 

2017

 

2018

 

2017

 

2018

 

Reconciliation of non-GAAP General and Administrative:

 

 

 

 

 

 

 

 

 

General and Administrative

 

$

15,100

 

$

19,228

 

$

43,915

 

$

53,338

 

Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises

 

2,950

 

3,959

 

8,798

 

10,820

 

Amortization of acquired intangibles

 

380

 

358

 

1,142

 

1,076

 

Acquisition-related costs

 

 

191

 

 

191

 

Non-GAAP General and Administrative

 

$

11,770

 

$

14,720

 

$

33,975

 

$

41,251

 

 


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