EX-99.1 2 d437900dex991.htm EXHIBIT 99.1 Exhibit 99.1

Exhibit 99.1

 

LOGO

 

Contacts:

Raymond Jones

Investor Relations

ir@zillowgroup.com

    

Katie Curnutte

Public Relations

press@zillow.com

 

 

ZILLOW GROUP REPORTS RECORD SECOND QUARTER 2017 RESULTS

Revenue increased 28% year-over-year to $266.9 million

 

    Premier Agent Revenue increased 29% year-over-year to a record $189.7 million.

 

    Traffic to Zillow Group brands’ mobile apps and websites reached an all-time high of more than 182 million unique users in May 2017.

 

    Visits to Zillow Group brands’ mobile apps and websites, including Zillow, Trulia, StreetEasy and RealEstate.com, increased 17% year-over-year to nearly 1.7 billion in the second quarter of 2017.

SEATTLE – August 8, 2017 – Zillow Group, Inc. (NASDAQ:Z) (NASDAQ:ZG), which houses a portfolio of the largest and most vibrant real estate and home-related brands on mobile and the web, today announced its consolidated financial results for the three months ended June 30, 2017.

“Zillow Group finished the first half of 2017 with another quarter of record revenue and traffic, further solidifying our foundation for long-term growth,” said Zillow Group CEO Spencer Rascoff. “Our growing consumer audience is increasingly engaged and we achieved revenue growth across all of our emerging marketplaces. As we continue to expand our suite of marketing and technology solutions to help our industry partners achieve long-term success, we’re excited about the opportunities in front of us.”

Second Quarter 2017 Financial Highlights

 

  Revenue increased 28% to a record $266.9 million from $208.4 million in the second quarter of 2016.

 

    Marketplace Revenue increased 30% to $248.6 million from $191.6 million in the second quarter of 2016.

 

    Premier Agent Revenue increased 29% to $189.7 million from $147.1 million in the second quarter of 2016.

 

    Other Real Estate Revenue1 increased 45% to $37.9 million from $26.1 million in the second quarter of 2016.

 

    Mortgages Revenue increased 14% to $20.9 million from $18.4 million in the second quarter of 2016.

 

 

1  Other Real Estate Revenue primarily includes revenue generated by Zillow Group Rentals, New Construction, as well as revenue from the sale of various other advertising and business software solutions and services for real estate professionals.


    Display Revenue increased 9% to $18.3 million from $16.8 million in the second quarter of 2016.

 

  GAAP net loss was $21.8 million, or (8)% of Revenue, in the second quarter of 2017, compared to GAAP net loss of $156.1 million, or (75)% of Revenue, in the second quarter of 2016. GAAP net loss in the second quarter of 2016 includes the impact of a $130.0 million litigation settlement.

 

  Adjusted EBITDA was $39.7 million, or 15% of Revenue, in the second quarter of 2017, which was an increase from $(101.3) million, or (49)% of Revenue, in the second quarter of 2016. Adjusted EBITDA in the second quarter of 2016 includes the impact of a $130.0 million litigation settlement.

Second Quarter 2017 Operating and Business Highlights

 

  More than 178 million average monthly unique users visited Zillow Group brands’ mobile apps and websites, an increase of 6% year-over-year. Zillow Group brands’ mobile apps and websites reached an all-time high of more than 182 million unique users in May 2017, an increase of more than 10 million unique users from the same period last year.

 

  Visits to Zillow Group brands’ mobile apps and websites Zillow, Trulia, StreetEasy (included as of March 2017) and RealEstate.com (included as of June 2017) increased 17% year-over-year to nearly 1.7 billion. Premier Agent revenue per visit increased 10% to $0.113 from $0.103 in the same period last year.

 

  The number of Premier Agent accounts spending more than $5,000 per month grew by 107% year-over-year and increased 92% on a total dollar basis.

 

  Total sales to Premier Agents who have been customers for more than one year increased 49% year-over-year.

 

  Sales to existing Premier Agents accounted for 52% of total bookings.

 

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Business Outlook - Third Quarter and Full Year 2017

The following table presents Zillow Group’s business outlook for the periods presented:

 

Zillow Group Outlook as of August 8, 2017

   Three Months Ending
September 30, 2017
     Year Ending
December 31, 2017
 
(in millions)                                      

Revenue

   $ 273      to    $ 278      $ 1,055      to    $ 1,065  

Premier Agent revenue

   $ 196      to    $ 198      $ 760      to    $ 765  

Other real estate revenue

   $ 40      to    $ 41      $ 150      to    $ 152  

Mortgages revenue

   $ 20      to    $ 21      $ 80      to    $ 82  

Display revenue

   $ 17      to    $ 18      $ 65      to    $ 66  

Operating expenses

   $ 261      to    $ 266        ***  

Net income (loss)

   $ 2.25      to    $ 7.25      $ (25    to    $ (15

Adjusted EBITDA (1)

   $ 64      to    $ 69      $ 220      to    $ 230  

Depreciation and amortization

   $ 26      to    $ 28      $ 107      to    $ 112  

Share-based compensation expense

   $ 28      to    $ 30      $ 110      to    $ 115  

Capital expenditures

     ***      $ 55      to    $ 57  

Weighted average shares outstanding — basic

     187.0      to      189.0        185.5      to      187.5  

Weighted average shares outstanding — diluted

     196.5      to      198.5        195.0      to      197.0  

 

*** Outlook not provided
(1) A reconciliation of forecasted Adjusted EBITDA to forecasted net income (loss) is provided below in this press release.

Conference Call and Webcast Information

Zillow Group CEO Spencer Rascoff and CFO Kathleen Philips will host a live conference call and webcast to discuss the results today at 2 p.m. Pacific Time (5 p.m. Eastern Time). A copy of management’s prepared remarks will be made available on the investor relations section of Zillow Group’s website at http://investors.zillowgroup.com/results.cfm prior to the live conference call and webcast to allow analysts and investors additional time to review the details of the results.

Zillow Group’s management will first read the prepared remarks and then answer questions submitted via Sli.do, in addition to answering questions from dialed-in participants, during the live conference call. Questions may be submitted at www.slido.com using the event code #ZEarnings.

A link to the live webcast of the conference call will be available on the investor relations section of Zillow Group’s website at http://investors.zillowgroup.com/results.cfm. The live call may also be accessed via phone at (877) 643-7152 toll-free domestically and at (443) 863-7921 internationally. Following completion of the call, a recorded replay of the webcast will be available on the investor relations section of Zillow Group’s website.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks and

 

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uncertainties, including, without limitation, statements regarding our business outlook, strategic priorities, and operational plans for 2017. Statements containing words such as “may,” “believe,” “anticipate,” “expect,” “intend,” “plan,” “project,” “will,” “projections,” “continue,” “business outlook,” “forecast,” “estimate,” “outlook,” “guidance,” or similar expressions constitute forward-looking statements. Differences in Zillow Group’s actual results from those described in these forward-looking statements may result from actions taken by Zillow Group as well as from risks and uncertainties beyond Zillow Group’s control. Factors that may contribute to such differences include, but are not limited to, Zillow Group’s ability to maintain and effectively manage an adequate rate of growth; Zillow Group’s ability to maintain or establish relationships with listings and data providers; the impact of the real estate industry on Zillow Group’s business; the impact of pending litigation and other legal and regulatory matters, including those described in Note 14 under the subsection titled “Legal Proceedings” in our Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of Zillow Group’s Quarterly Report on Form 10-Q; Zillow Group’s ability to innovate and provide products and services that are attractive to its users and advertisers; Zillow Group’s ability to increase awareness of the Zillow Group brands; Zillow Group’s ability to attract consumers to Zillow Group’s mobile applications and websites; Zillow Group’s ability to compete successfully against existing or future competitors; Zillow Group’s ability to successfully integrate and realize the benefits of our past or future strategic acquisitions or investments; the reliable performance of Zillow Group’s network infrastructure and content delivery processes; and Zillow Group’s ability to protect its intellectual property. The foregoing list of risks and uncertainties is illustrative, but is not exhaustive. For more information about potential factors that could affect Zillow Group’s business and financial results, please review the “Risk Factors” described in Zillow Group’s Annual Report on Form 10-K for the year ended December 31, 2016 filed with the Securities and Exchange Commission, or SEC, and in Zillow Group’s other filings with the SEC. Except as may be required by law, Zillow Group does not intend, and undertakes no duty, to update this information to reflect future events or circumstances.

Use of Non-GAAP Financial Measures

To provide investors with additional information regarding our financial results, this press release includes references to Adjusted EBITDA (including forecasted Adjusted EBITDA) and non-GAAP net income (loss) per share, which are non-GAAP financial measures. We have provided a reconciliation of Adjusted EBITDA (historical and forecasted) to net income (loss) (historical and forecasted), the most directly comparable GAAP financial measure, and a reconciliation of net income (loss), adjusted, to net loss, as reported on a GAAP basis, and the calculations of non-GAAP net income (loss) per share - basic and diluted, within this earnings release.

Adjusted EBITDA is a key metric used by our management and board of directors to measure operating performance and trends, and to prepare and approve our annual budget. The exclusion of certain expenses in calculating Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis.

Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:

 

    Adjusted EBITDA does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;

 

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    Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;

 

    Adjusted EBITDA does not consider the potentially dilutive impact of share-based compensation;

 

    Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;

 

    Adjusted EBITDA does not reflect acquisition-related costs;

 

    Adjusted EBITDA does not reflect interest expense or other income;

 

    Adjusted EBITDA does not reflect income taxes; and

 

    Other companies, including companies in our own industry, may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.

Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including various cash flow metrics, net loss and our other GAAP results.

Our presentation of non-GAAP net income (loss) per share excludes the impact of share-based compensation expense, acquisition-related costs and income tax benefits. This measure is not a key metric used by our management and board of directors to measure operating performance or otherwise manage the business. However, we provide non-GAAP net income (loss) per share as supplemental information to investors, as we believe the exclusion of share-based compensation expense, acquisition-related costs and income tax benefits facilitates investors’ operating performance comparisons on a period-to-period basis. You should not consider these metrics in isolation or as substitutes for analysis of our results as reported under GAAP.

About Zillow Group

Zillow Group (NASDAQ:Z) (NASDAQ:ZG) houses a portfolio of the largest real estate and home-related brands on mobile and the web. The company’s brands focus on all stages of the home lifecycle: renting, buying, selling and financing. Zillow Group is committed to empowering consumers with unparalleled data, inspiration and knowledge around homes, and connecting them with the right local professionals to help. The Zillow Group portfolio of consumer brands includes real estate and rental marketplaces Zillow®, Trulia®, StreetEasy®, HotPads®, Naked Apartments® and RealEstate.com. In addition, Zillow Group provides a comprehensive suite of marketing software and technology solutions to help real estate, rental and mortgage professionals maximize business opportunities and connect with millions of consumers. The company operates a number of business brands for real estate, rental and mortgage professionals, including Mortech®, dotloop® and Bridge Interactive®. The company is headquartered in Seattle.

Please visit http://investors.zillowgroup.com, www.zillowgroup.com/ir-blog, and www.twitter.com/zillowgroup, where Zillow Group discloses information about the company, its financial information, and its business which may be deemed material.

The Zillow Group logo is available at http://zillowgroup.mediaroom.com/logos-photos.

 

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Zillow, Premier Agent, Mortech, Bridge Interactive, StreetEasy and HotPads are registered trademarks of Zillow, Inc. Trulia is a registered trademark of Trulia, LLC. dotloop is a registered trademark of DotLoop, LLC. Naked Apartments is a registered trademark of Naked Apartments, LLC.

Twitter is a registered trademark of Twitter, Inc.

(ZFIN)

 

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Reported Consolidated Results

ZILLOW GROUP, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

     June 30,
2017
    December 31,
2016
 

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 276,465     $ 243,592  

Short-term investments

     322,463       262,870  

Accounts receivable, net

     47,716       40,527  

Prepaid expenses and other current assets

     39,979       34,817  
  

 

 

   

 

 

 

Total current assets

     686,623       581,806  

Restricted cash

     1,053       1,053  

Property and equipment, net

     103,004       98,288  

Goodwill

     1,927,450       1,923,480  

Intangible assets, net

     514,513       527,464  

Other assets

     27,442       17,586  
  

 

 

   

 

 

 

Total assets

   $ 3,260,085     $ 3,149,677  
  

 

 

   

 

 

 

Liabilities and shareholders’ equity

    

Current liabilities:

    

Accounts payable

   $ 2,037     $ 4,257  

Accrued expenses and other current liabilities

     43,273       38,427  

Accrued compensation and benefits

     24,560       24,057  

Deferred revenue

     30,912       29,154  

Deferred rent, current portion

     1,748       1,347  
  

 

 

   

 

 

 

Total current liabilities

     102,530       97,242  

Deferred rent, net of current portion

     16,647       15,298  

Long-term debt

     376,259       367,404  

Deferred tax liabilities and other long-term liabilities

     134,146       136,146  
  

 

 

   

 

 

 

Total liabilities

     629,582       616,090  

Shareholders’ equity:

    

Class A common stock

     6       5  

Class B common stock

     1       1  

Class C capital stock

     12       12  

Additional paid-in capital

     3,155,202       3,030,854  

Accumulated other comprehensive loss

     (444     (242

Accumulated deficit

     (524,274     (497,043
  

 

 

   

 

 

 

Total shareholders’ equity

     2,630,503       2,533,587  
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 3,260,085     $ 3,149,677  
  

 

 

   

 

 

 

 

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ZILLOW GROUP, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2017     2016     2017     2016  

Revenue

   $ 266,850     $ 208,403     $ 512,625     $ 394,385  

Costs and expenses:

        

Cost of revenue (exclusive of amortization) (1)(2)

     20,260       16,745       40,492       32,948  

Sales and marketing (2)

     131,218       99,629       237,158       198,730  

Technology and development (2)

     78,541       63,396       151,409       123,767  

General and administrative (2)

     53,346       183,759       98,812       241,550  

Acquisition-related costs

     43       204       148       797  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total costs and expenses

     283,408       363,733       528,019       597,792  
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss from operations

     (16,558     (155,330     (15,394     (203,407

Other income

     1,610       753       2,563       1,434  

Interest expense

     (6,897     (1,572     (13,620     (3,145
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss before income taxes

     (21,845     (156,149     (26,451     (205,118

Income tax benefit

     —         —         —         1,364  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

   $ (21,845   $ (156,149   $ (26,451   $ (203,754
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss per share — basic and diluted

   $ (0.12   $ (0.87   $ (0.14   $ (1.14

Weighted-average shares outstanding — basic and diluted

     185,439       179,451       184,305       179,067  

 

(1)    Amortization of website development costs and intangible assets included in technology and development

   $ 23,159     $ 22,252     $ 46,420     $ 42,925  

(2)    Includes share-based compensation expense as follows:

        

Cost of revenue

   $ 1,025     $ 982     $ 1,928     $ 1,768  

Sales and marketing

     6,250       6,395       11,780       11,598  

Technology and development

     10,400       8,366       18,891       15,125  

General and administrative

     11,518       12,573       22,989       25,376  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 29,193     $ 28,316     $ 55,588     $ 53,867  
  

 

 

   

 

 

   

 

 

   

 

 

 

Other Financial Data:

        

Adjusted EBITDA (3)

   $ 39,700     $ (101,260   $ 94,499     $ (99,386

 

(3) See above for more information regarding our presentation of Adjusted EBITDA.

 

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ZILLOW GROUP, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

     Six Months Ended  
     June 30,  
     2017     2016  

Operating activities

    

Net loss

   $ (26,451   $ (203,754

Adjustments to reconcile net loss to net cash provided by (used in) operating activities, net of amounts assumed in connection with acquisitions:

    

Depreciation and amortization

     54,157       49,357  

Share-based compensation expense

     55,588       53,867  

Amortization of discount and issuance costs on 2021 Notes

     8,855       —    

Release of valuation allowance on certain deferred tax assets

     —         1,364  

Loss on disposal of property and equipment

     2,024       2,170  

Bad debt expense

     3,960       927  

Deferred rent

     1,750       1,321  

Amortization of bond premium

     376       808  

Changes in operating assets and liabilities:

    

Accounts receivable

     (11,149     (6,608

Prepaid expenses and other assets

     (5,845     7,122  

Accounts payable

     (1,714     13,743  

Accrued expenses and other current liabilities

     1,203       5,005  

Accrued compensation and benefits

     503       12,708  

Deferred revenue

     1,635       4,190  

Other long-term liabilities

     —         (2,749
  

 

 

   

 

 

 

Net cash provided by (used in) operating activities

     84,892       (60,529

Investing activities

    

Proceeds from maturities of investments

     133,432       105,440  

Purchases of investments

     (193,604     (83,976

Proceeds from sales of investments

     —         4,795  

Decrease in restricted cash

     —         1,962  

Purchases of property and equipment

     (31,608     (31,294

Purchases of intangible assets

     (6,784     (5,420

Purchase of cost method investment

     (10,000     —    

Proceeds from divestiture of a business

     579       —    

Cash paid for acquisitions, net

     (6,002     (12,357
  

 

 

   

 

 

 

Net cash used in investing activities

     (113,987     (20,850

Financing activities

    

Proceeds from exercise of stock options

     62,263       7,737  

Value of equity awards withheld for tax liability

     (295     (286
  

 

 

   

 

 

 

Net cash provided by financing activities

     61,968       7,451  

Net increase (decrease) in cash and cash equivalents during period

     32,873       (73,928

Cash and cash equivalents at beginning of period

     243,592       229,138  
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 276,465     $ 155,210  
  

 

 

   

 

 

 

Supplemental disclosures of cash flow information

    

Cash paid for interest

   $ 4,458     $ 3,163  

Noncash transactions:

    

Capitalized share-based compensation

   $ 5,289     $ 5,304  

Write-off of fully depreciated property and equipment

   $ 7,552     $ 9,986  

Write-off of fully amortized intangible assets

   $ 5,302     $ —    

 

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Adjusted EBITDA

The following table presents a reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP financial measure, for each of the periods presented (in thousands, unaudited):

 

     Three Months Ended      Six Months Ended  
     June 30,      June 30,  
     2017      2016      2017      2016  

Reconciliation of Adjusted EBITDA to Net Loss:

           

Net loss

   $ (21,845    $ (156,149    $ (26,451    $ (203,754

Other income

     (1,610      (753      (2,563      (1,434

Depreciation and amortization expense

     27,022        25,550        54,157        49,357  

Share-based compensation expense

     29,193        28,316        55,588        53,867  

Acquisition-related costs

     43        204        148        797  

Interest expense

     6,897        1,572        13,620        3,145  

Income tax benefit

     —          —          —          (1,364
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted EBITDA (1)

   $ 39,700      $ (101,260    $ 94,499      $ (99,386
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) For the three and six month periods ended June 30, 2016, Adjusted EBITDA includes the impact of a $130.0 million litigation settlement. Adjusted EBITDA for the three and six month periods ended June 30, 2016 also includes $12.5 million and $28.2 million, respectively, in related legal costs.

Non-GAAP Net Income (Loss) per Share

The following table presents a reconciliation of net income (loss), adjusted, to net loss, as reported on a GAAP basis, and the calculation of non-GAAP net income (loss) per share - basic and diluted, for each of the periods presented (in thousands, except per share data, unaudited):

 

     Three Months Ended      Six Months Ended  
     June 30,      June 30,  
     2017      2016      2017      2016  

Net loss, as reported

   $ (21,845    $ (156,149    $ (26,451    $ (203,754

Share-based compensation expense

     29,193        28,316        55,588        53,867  

Acquisition-related costs

     43        204        148        797  

Income tax benefit

     —          —          —          (1,364
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income (loss), adjusted

   $ 7,391      $ (127,629    $ 29,285      $ (150,454
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-GAAP net income (loss) per share - basic

   $ 0.04      $ (0.71    $ 0.16      $ (0.84

Non-GAAP net income (loss) per share - diluted

   $ 0.04      $ (0.71    $ 0.15      $ (0.84

Weighted-average shares outstanding - basic

     185,439        179,451        184,305        179,067  

Weighted-average shares outstanding - diluted

     195,021        179,451        193,119        179,067  

 

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Revenue by Type

The following tables present our revenue by type and as a percentage of total revenue for each of the periods presented (in thousands, unaudited):

 

     Three Months Ended     Six Months Ended  
     June 30,     June 30,  
     2017     2016     2017     2016  

Revenue:

        

Marketplace revenue:

        

Premier Agent

   $ 189,725     $ 147,106     $ 365,026     $ 281,635  

Other real estate

     37,894       26,070       72,649       44,048  

Mortgages

     20,936       18,392       41,206       34,846  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Marketplace revenue

     248,555       191,568       478,881       360,529  

Display revenue

     18,295       16,835       33,744       33,856  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

   $ 266,850     $ 208,403     $ 512,625     $ 394,385  
  

 

 

   

 

 

   

 

 

   

 

 

 
     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2017     2016     2017     2016  

Percentage of Total Revenue:

        

Marketplace revenue:

        

Premier Agent

     71     71     71     71

Other real estate

     14     13     14     11

Mortgages

     8     9     8     9
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Marketplace revenue

     93     92     93     91

Display revenue

     7     8     7     9
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     100     100     100     100
  

 

 

   

 

 

   

 

 

   

 

 

 

Key Metrics

The following table sets forth our key metrics for each of the periods presented:

 

     Three Months Ended
June 30,
     2016 to 2017
% Change
 
     2017      2016     
     (in millions)         

Average Monthly Unique Users (1)

     178.1        168.7        6

Visits (2)

     1,678.7        1,431.4        17

 

(1) Zillow, StreetEasy, HotPads, Naked Apartments and RealEstate.com measure unique users with Google Analytics, and Trulia measures unique users with Adobe Analytics (formerly called Omniture analytical tools).
(2) Visits includes visits to the Zillow, Trulia, StreetEasy (as of March 2017) and RealEstate.com (as of June 2017) mobile apps and websites. We measure Zillow, StreetEasy and RealEstate.com visits with Google Analytics and Trulia visits with Adobe Analytics.

 

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Reconciliation of Forecasted Adjusted EBITDA to Forecasted Net Income (Loss)

The following table presents a reconciliation of forecasted Adjusted EBITDA to forecasted net income (loss) at the midpoint of the range for each of the periods presented (in thousands, unaudited):

 

     Three Months Ending      Year Ending  
     September 30, 2017      December 31, 2017  

Reconciliation of Forecasted Adjusted EBITDA to Forecasted Net Income (Loss):

     

Forecasted Net income (loss)

   $ 4,750      $ (20,000

Forecasted Other income

     (950      (3,800

Forecasted Depreciation and amortization expense

     27,000        109,500  

Forecasted Share-based compensation expense

     29,000        112,500  

Forecasted Interest expense

     6,700        26,800  
  

 

 

    

 

 

 

Forecasted Adjusted EBITDA

   $ 66,500      $ 225,000  
  

 

 

    

 

 

 

 

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