February 10, 2020
RingCentral Announces Fourth Quarter 2019 Results
Surpasses
Total Revenue up 34%
Enterprise ARR up 71%
Fourth Quarter Financial Highlights
-
Total revenue increased 34% year over year to
$253 million . -
Subscriptions revenue increased 33% year over year to
$229 million . -
Annualized Exit Monthly Recurring Subscriptions (ARR) increased 32% year over year to
$960 million . -
RingCentral Office
®
ARR increased 36% year over year to
$877 million . -
Mid-market and Enterprise ARR increased 59% year over year to
$479 million . -
Enterprise ARR increased 71% year over year to
$293 million . -
Channel ARR increased 63% year over year to
$300 million .
“Fourth quarter results were outstanding, driven by continued momentum in mid-market and enterprise markets. We are very excited to have surpassed our previous goal of a
Financial Results for the Fourth Quarter 2019
-
Revenue:
Total revenue was
$253 million for the fourth quarter of 2019, up from$189 million in the fourth quarter of 2018, representing 34% growth. -
Operating Income (Loss):
GAAP operating loss was
($20) million , compared to a GAAP operating loss of($3) million in the same period last year, primarily driven by higher share-based compensation, amortization of intangibles, and acquisition related matters. Non-GAAP operating income was$24 million , compared to a non-GAAP operating income of$17 million in the same period last year. -
Net Income (Loss) Per Share:
GAAP net loss per share was (
$0.30 ), compared to ($0.07 ) in the same period last year, primarily driven by higher share-based compensation, amortization of intangibles, and acquisition related matters. Non-GAAP net income per diluted share was$0.22 , compared to$0.23 per diluted share in the same period last year. The fourth quarter of 2019 reflected a 22.5% non-GAAP tax rate, compared to nearly 0% non-GAAP tax rate in our 2018 reporting. There were no material cash taxes given our net operating loss carryforwards. -
Balance Sheet:
Total cash and cash equivalents at the end of the fourth quarter of 2019 was
$344 million , which reflects one-time payments related to our recent strategic partnerships. This compares with$583 million at the end of the third quarter of 2019.
Financial Results for the Full Year 2019
-
Revenue:
Total revenue was
$903 million for 2019, up from$674 million in 2018, representing 34% growth. -
Operating Income (Loss):
GAAP operating loss was
($46) million , compared to a GAAP operating loss of($16) million in 2018, primarily driven by higher share-based compensation, amortization of intangibles, and acquisition related matters. Non-GAAP operating income was$83 million , compared to a non-GAAP operating income of$59 million in 2018. -
Net Income (Loss) Per Share:
GAAP net loss per share was (
$0.64 ), compared to ($0.33 ) in 2018, primarily driven by higher share-based compensation, amortization of intangibles, and acquisition related matters. Non-GAAP net income per diluted share was$0.82 , compared to$0.77 in 2018. 2019 reflected a 22.5% non-GAAP tax rate, compared to a nearly 0% non-GAAP tax rate in 2018 reporting. There were no material cash taxes given our net operating loss carryforwards.
Additional Highlights
-
Announced that
Anand Eswaran , former Corporate Vice President for Microsoft’s Global Enterprise Business, has joined the company as its President and Chief Operating Officer. -
Named a
November 2019 Gartner Peer Insights Customers’ Choice forUnified Communications as a Service Worldwide as reviewed by customers.RingCentral received an overall rating of 4.5 out of 5 stars, based on 125 reviews, as ofOctober 31, 2019 . -
Announced that
Carousel
,
Telarus
, and
Westcon
have been named
Platinum Partners byRingCentral , a designation held by RingCentral’s most strategic partners.
Financial Outlook
Full Year 2020 Guidance:
-
Total revenue range of
$1.125 to$1.135 billion , representing annual growth of 25% to 26%. -
Subscriptions revenue range of
$1.019 to$1.027 billion , representing annual growth of 25% to 26%. - GAAP operating margin between (10.9%) and (9.6%).
- Non-GAAP operating margin between 9.6% and 9.7%.
- Non-GAAP tax rate assumed to be 22.5%. No material cash taxes expected given net operating loss carryforwards.
-
Non-GAAP EPS range of
$0.93 to$0.94 based on 94.5 million fully diluted shares. This reflects additional imputed shares from the convertible debt due to stock price appreciation and shares issued to Avaya inNovember 2019 , which if excluded would have increased the guidance range by$0.04 . -
Share-based compensation range of
$185 to$195 million , amortization of debt discount of$22 million , and amortization of acquired intangibles range of$34 to$36 million .
First Quarter 2020 Guidance:
-
Total revenue range of
$257 to$259 million , representing annual growth of 28% to 29%. -
Subscriptions revenue range of
$233 to$235 million , representing annual growth of 28% to 29%. - GAAP operating margin range of (10.3%) to (9.5%).
- Non-GAAP operating margin of 8.0% to 8.1%.
- Non-GAAP tax rate assumed to be 22.5%. No material cash taxes expected given net operating loss carryforwards.
-
Non-GAAP EPS of
$0.18 to$0.19 based on 93.0 million fully diluted shares. -
Share-based compensation range of
$37 to$38 million , amortization of debt discount of$5 million , and amortization of acquired intangibles range of$8.5 to$9.0 million .
For a reconciliation of our forecasted non-GAAP operating margin, see “Reconciliation of Forecasted Operating Margin GAAP Measures to Non-GAAP Measures.” We have not reconciled our non-GAAP EPS to its respective forecasted GAAP measure because we do not provide guidance on it. We do not provide guidance on forecasted GAAP EPS because of the inherent uncertainty and complexity involved in forecasting the intercompany remeasurement gain (loss), gain (loss) associated with investments and strategic partnerships, and provision (benefit) from income taxes, which could be significant reconciling items between the non-GAAP and respective GAAP measures. The intercompany remeasurement gain (loss) is affected by the movement in various exchange rates relative to the
Conference Call Details:
-
What:
RingCentral financial results for the fourth quarter of 2019 and outlook for first quarter and the full year of 2020. -
When:
Monday, February 10, 2020 at2:00PM PT (5:00PM ET ). -
Dial-in:
To access the call in
the United States , please dial (877) 705-6003, and for international callers, dial (201) 493-6725. Callers are encouraged to dial into the call 10 to 15 minutes prior to the start to prevent any delay in joining. - Webcast: http://ir.ringcentral.com/ (live and replay).
-
Replay:
Following the completion of the call through
11:59 PM ET onFebruary 17, 2020 , a telephone replay will be available by dialing (844) 512-2921 fromthe United States or (412) 317-6671 internationally with recording access code 13698019.
Investor Presentation Details
An investor presentation providing additional information and analysis can be found at http://ir.ringcentral.com/ .
About
©2020
Forward-Looking Statements
This press release contains “forward-looking statements,” including but not limited to, statements regarding our future financial results, our GAAP and non-GAAP guidance, our momentum in mid-market and enterprise, the contribution of the channel, the success of our relationships with AT&T, Avaya, and
All forward-looking statements in this press release are based on information available to
Non-GAAP Financial Measures
Our reported financial results and financial outlook include certain Non-GAAP financial measures, including Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP income (loss) from operations, Non-GAAP net income (loss) and Non-GAAP net income (loss) per diluted share. Non-GAAP subscriptions gross margin is defined as Non-GAAP subscriptions gross profit divided by GAAP subscriptions revenue. Non-GAAP other gross margin is defined as Non-GAAP other gross profit divided by GAAP other revenue. Non-GAAP income (loss) from operations is defined as GAAP income (loss) from operations excluding share-based compensation, amortization of acquisition intangibles, and acquisition related matters including transaction costs, integration costs, restructuring costs, and acquisition-related retention payments, as well as changes in the fair value of contingent consideration obligations. Non-GAAP operating margin is defined as Non-GAAP income (loss) from operations divided by total GAAP revenue. Non-GAAP net income (loss) is defined as GAAP net income (loss) excluding share-based compensation, intercompany remeasurement gains or losses, acquisition related matters, amortization of acquisition intangibles, non-cash interest expense associated with amortization of debt discount and issuance costs related to our convertible senior notes, gain (loss) associated with investments and strategic partnerships, tax benefit from release of valuation allowance, and the related income tax effect of these adjustments.
Non-GAAP diluted shares outstanding include the impact on shares used in per share calculations of our outstanding capped call transactions. Our outstanding capped call transactions are anti-dilutive in GAAP earnings per share but are expected to mitigate the dilutive effect of our convertible notes and therefore are included in the calculations of non-GAAP diluted shares outstanding.
We have included Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP net income (loss), and Non-GAAP net income (loss) per diluted share in this press release because they are key measures used by us to understand and evaluate our operating performance and trends, to prepare and approve our annual budget, and to develop short and long-term operational plans. In particular, the exclusion of certain expenses in calculating Non-GAAP software subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP net income (loss), and Non-GAAP net income (loss) per diluted share provide useful measure for period-to-period comparisons of our business.
Although Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP net income (loss), and Non-GAAP net income (loss) per diluted share are frequently used by investors in their evaluations of companies, these non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Because of these limitations, these non-GAAP financial measures should be considered alongside other financial performance measures.
Reconciliations of the Company’s non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included in this press release.
Other Measures
Our reported results also include our annualized exit monthly recurring subscriptions, RingCentral Office
®
annualized exit monthly recurring subscriptions, mid-market and enterprise annualized exit monthly recurring subscriptions, enterprise annualized exit monthly recurring subscriptions, channel partner annualized exit monthly recurring subscriptions, and net monthly subscriptions dollar retention. We define our annualized exit monthly recurring subscriptions as our monthly recurring subscriptions multiplied by 12. Our monthly recurring subscriptions equal the monthly value of all customer recurring charges contracted at the end of a given month. We believe this metric is a leading indicator of our anticipated subscriptions revenue. We calculate our RingCentral Office
®
annualized exit monthly recurring subscriptions in the same manner as we calculate our annualized exit monthly recurring subscriptions, except that only customer subscriptions from RingCentral Office
®
and
Disclaimer
Gartner, Gartner Peer Insights ‘Voice of the Customer’:
Gartner Peer Insights Customers’ Choice constitute the subjective opinions of individual end-user reviews, ratings, and data applied against a documented methodology; they neither represent the views of, nor constitute an endorsement by, Gartner or its affiliates.
Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
TABLE 1
|
|||||||
|
|
|
|
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
343,606 |
|
|
$ |
566,329 |
|
Accounts receivable, net |
129,990 |
|
|
94,375 |
|
||
Deferred sales commission costs |
36,589 |
|
|
23,038 |
|
||
Prepaid expenses and other current assets |
25,354 |
|
|
23,772 |
|
||
Total current assets |
535,539 |
|
|
707,514 |
|
||
Property and equipment, net |
89,230 |
|
|
70,205 |
|
||
Operating lease right-of-use-assets |
39,269 |
|
|
— |
|
||
Long-term investments |
132,188 |
|
|
— |
|
||
Deferred and prepaid sales commission costs, non-current |
462,344 |
|
|
55,735 |
|
||
|
55,278 |
|
|
31,238 |
|
||
Acquired intangibles, net |
127,338 |
|
|
19,480 |
|
||
Other assets |
9,561 |
|
|
10,154 |
|
||
Total assets |
$ |
1,450,747 |
|
|
$ |
894,326 |
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
34,612 |
|
|
$ |
10,145 |
|
Accrued liabilities |
138,729 |
|
|
100,687 |
|
||
Deferred revenue |
107,372 |
|
|
88,527 |
|
||
Total current liabilities |
280,713 |
|
|
199,359 |
|
||
Convertible senior notes, net |
386,889 |
|
|
366,552 |
|
||
Operating lease liabilities |
28,516 |
|
|
— |
|
||
Other long-term liabilities |
8,929 |
|
|
10,806 |
|
||
Total liabilities |
705,047 |
|
|
576,717 |
|
||
|
|
|
|
||||
Stockholders’ equity |
|
|
|
||||
Common stock |
9 |
|
|
8 |
|
||
Additional paid-in capital |
1,033,053 |
|
|
551,078 |
|
||
Accumulated other comprehensive income |
1,948 |
|
|
2,226 |
|
||
Accumulated deficit |
(289,310 |
) |
|
(235,703 |
) |
||
Total stockholders’ equity |
$ |
745,700 |
|
|
$ |
317,609 |
|
Total liabilities and stockholders’ equity |
$ |
1,450,747 |
|
|
$ |
894,326 |
|
The Company adopted the new accounting standard related to leases (Topic 842) effective
TABLE 2
|
|||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
Revenues |
|
|
|
|
|
|
|
||||||||
Subscriptions |
$ |
229,405 |
|
|
$ |
171,901 |
|
|
$ |
817,811 |
|
|
$ |
612,888 |
|
Other |
23,460 |
|
|
16,723 |
|
|
85,047 |
|
|
60,736 |
|
||||
Total revenues |
252,865 |
|
|
188,624 |
|
|
902,858 |
|
|
673,624 |
|
||||
Cost of revenues |
|
|
|
|
|
|
|
||||||||
Subscriptions |
45,977 |
|
|
30,254 |
|
|
160,320 |
|
|
109,454 |
|
||||
Other |
20,896 |
|
|
13,861 |
|
|
70,723 |
|
|
47,675 |
|
||||
Total cost of revenues |
66,873 |
|
|
44,115 |
|
|
231,043 |
|
|
157,129 |
|
||||
Gross profit |
185,992 |
|
|
144,509 |
|
|
671,815 |
|
|
516,495 |
|
||||
Operating expenses |
|
|
|
|
|
|
|
||||||||
Research and development |
38,658 |
|
|
27,230 |
|
|
136,363 |
|
|
101,042 |
|
||||
Sales and marketing |
126,077 |
|
|
91,894 |
|
|
439,100 |
|
|
329,116 |
|
||||
General and administrative |
41,626 |
|
|
28,789 |
|
|
142,027 |
|
|
102,773 |
|
||||
Total operating expenses |
206,361 |
|
|
147,913 |
|
|
717,490 |
|
|
532,931 |
|
||||
Loss from operations |
(20,369 |
) |
|
(3,404 |
) |
|
(45,675 |
) |
|
(16,436 |
) |
||||
Other income (expense), net |
|
|
|
|
|
|
|
||||||||
Interest expense |
(5,232 |
) |
|
(4,939 |
) |
|
(20,512 |
) |
|
(16,102 |
) |
||||
Other income, net |
129 |
|
|
2,531 |
|
|
9,247 |
|
|
6,475 |
|
||||
Other income (expense), net |
(5,103 |
) |
|
(2,408 |
) |
|
(11,265 |
) |
|
(9,627 |
) |
||||
Loss before income taxes |
(25,472 |
) |
|
(5,812 |
) |
|
(56,940 |
) |
|
(26,063 |
) |
||||
Provision for (benefit from) income taxes |
(215 |
) |
|
(134 |
) |
|
(3,333 |
) |
|
140 |
|
||||
Net loss |
$ |
(25,257 |
) |
|
$ |
(5,678 |
) |
|
$ |
(53,607 |
) |
|
$ |
(26,203 |
) |
Net loss per common share |
|
|
|
|
|
|
|
||||||||
Basic and diluted |
$ |
(0.30 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.64 |
) |
|
$ |
(0.33 |
) |
Weighted-average number of shares used in computing net loss per share |
|
|
|
|
|
|
|
||||||||
Basic and diluted |
85,449 |
|
|
80,638 |
|
|
83,130 |
|
|
79,500 |
|
TABLE 3
|
|||||||
|
Year Ended
|
||||||
|
2019 |
|
2018 |
||||
Cash flows from operating activities |
|
|
|
||||
Net loss |
$ |
(53,607 |
) |
|
$ |
(26,203 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
37,870 |
|
|
23,273 |
|
||
Share-based compensation |
101,354 |
|
|
68,088 |
|
||
Amortization of deferred sales commission cost |
30,134 |
|
|
19,754 |
|
||
Amortization of debt discount and issuance cost |
20,337 |
|
|
15,918 |
|
||
Loss (gain) and other related costs on investments |
3,369 |
|
|
— |
|
||
Foreign currency remeasurement (gain) loss |
(105 |
) |
|
951 |
|
||
Provision for bad debt |
2,949 |
|
|
3,091 |
|
||
Deferred income taxes |
(737 |
) |
|
(303 |
) |
||
Tax benefit from release of valuation allowance |
(3,210 |
) |
|
— |
|
||
Other |
(334 |
) |
|
614 |
|
||
Changes in assets and liabilities: |
|
|
|
||||
Accounts receivable |
(37,163 |
) |
|
(47,877 |
) |
||
Deferred and prepaid sales commission costs |
(102,303 |
) |
|
(45,232 |
) |
||
Prepaid expenses and other current assets |
(1,575 |
) |
|
(342 |
) |
||
Other assets |
764 |
|
|
279 |
|
||
Accounts payable |
21,753 |
|
|
2,783 |
|
||
Accrued liabilities |
27,095 |
|
|
33,695 |
|
||
Deferred revenue |
18,845 |
|
|
24,780 |
|
||
Other liabilities |
(590 |
) |
|
(1,139 |
) |
||
Net cash provided by operating activities |
64,846 |
|
|
72,130 |
|
||
Cash flows from investing activities |
|
|
|
||||
Purchases of property and equipment |
(27,767 |
) |
|
(27,123 |
) |
||
Capitalized internal-use software |
(16,526 |
) |
|
(11,421 |
) |
||
Cash paid for business combination, net of cash acquired |
(27,870 |
) |
|
(26,434 |
) |
||
Purchases of long-term investments |
(135,557 |
) |
|
— |
|
||
Cash paid for acquisition of intangible assets |
(89,060 |
) |
|
(18,470 |
) |
||
Net cash used in investing activities |
(296,780 |
) |
|
(83,448 |
) |
||
Cash flows from financing activities |
|
|
|
||||
Proceeds from issuance of convertible senior notes, net of issuance costs |
— |
|
|
449,457 |
|
||
Payments for capped call transactions and costs |
— |
|
|
(49,910 |
) |
||
Repurchase of common stock |
— |
|
|
(15,000 |
) |
||
Proceeds from issuance of stock in connection with stock plans |
29,827 |
|
|
20,621 |
|
||
Taxes paid related to net share settlement of equity awards |
(14,666 |
) |
|
(7,172 |
) |
||
Payment of contingent consideration for business combination |
(5,176 |
) |
|
— |
|
||
Repayment of financing obligations |
(943 |
) |
|
(741 |
) |
||
Net cash provided by financing activities |
9,042 |
|
|
397,255 |
|
||
Effect of exchange rate changes |
169 |
|
|
(800 |
) |
||
Net (decrease) increase in cash, cash equivalents, and restricted cash |
(222,723 |
) |
|
385,137 |
|
||
Cash, cash equivalents, and restricted cash |
|
|
|
||||
Beginning of year |
566,329 |
|
|
181,192 |
|
||
End of year |
$ |
343,606 |
|
|
$ |
566,329 |
|
TABLE 4
|
|||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
Revenues |
|
|
|
|
|
|
|
||||||||
Subscriptions |
$ |
229,405 |
|
|
$ |
171,901 |
|
|
$ |
817,811 |
|
|
$ |
612,888 |
|
Other |
23,460 |
|
|
16,723 |
|
|
85,047 |
|
|
60,736 |
|
||||
Total revenues |
252,865 |
|
|
188,624 |
|
|
902,858 |
|
|
673,624 |
|
||||
Cost of revenues reconciliation |
|
|
|
|
|
|
|
||||||||
GAAP Subscriptions cost of revenues |
45,977 |
|
|
30,254 |
|
|
160,320 |
|
|
109,454 |
|
||||
Share-based compensation |
(2,095 |
) |
|
(1,162 |
) |
|
(6,891 |
) |
|
(4,343 |
) |
||||
Amortization of acquisition intangibles |
(3,310 |
) |
|
(277 |
) |
|
(6,998 |
) |
|
(729 |
) |
||||
Acquisition related matters |
(81 |
) |
|
(29 |
) |
|
(145 |
) |
|
(29 |
) |
||||
Non-GAAP Subscriptions cost of revenues |
40,491 |
|
|
28,786 |
|
|
146,286 |
|
|
104,353 |
|
||||
|
|
|
|
|
|
|
|
||||||||
GAAP Other cost of revenues |
20,896 |
|
|
13,861 |
|
|
70,723 |
|
|
47,675 |
|
||||
Share-based compensation |
(534 |
) |
|
(194 |
) |
|
(1,850 |
) |
|
(639 |
) |
||||
Non-GAAP Other cost of revenues |
20,362 |
|
|
13,667 |
|
|
68,873 |
|
|
47,036 |
|
||||
Gross profit and gross margin reconciliation |
|
|
|
|
|
|
|
||||||||
Non-GAAP Subscriptions |
82.3 |
% |
|
83.3 |
% |
|
82.1 |
% |
|
83.0 |
% |
||||
Non-GAAP Other |
13.2 |
% |
|
18.3 |
% |
|
19.0 |
% |
|
22.6 |
% |
||||
Non-GAAP Gross profit |
75.9 |
% |
|
77.5 |
% |
|
76.2 |
% |
|
77.5 |
% |
||||
Operating expenses reconciliation |
|
|
|
|
|
|
|
||||||||
|
38,658 |
|
|
27,230 |
|
|
136,363 |
|
|
101,042 |
|
||||
Share-based compensation |
(7,132 |
) |
|
(3,906 |
) |
|
(23,132 |
) |
|
(14,975 |
) |
||||
Acquisition related matters |
(341 |
) |
|
(9 |
) |
|
(693 |
) |
|
(9 |
) |
||||
|
31,185 |
|
|
23,315 |
|
|
112,538 |
|
|
86,058 |
|
||||
As a % of total revenues non-GAAP |
12.3 |
% |
|
12.4 |
% |
|
12.5 |
% |
|
12.8 |
% |
||||
|
|
|
|
|
|
|
|
||||||||
GAAP Sales and marketing |
126,077 |
|
|
91,894 |
|
|
439,100 |
|
|
329,116 |
|
||||
Share-based compensation |
(10,736 |
) |
|
(7,645 |
) |
|
(38,325 |
) |
|
(27,324 |
) |
||||
Amortization of acquisition intangibles |
(929 |
) |
|
(726 |
) |
|
(3,720 |
) |
|
(3,617 |
) |
||||
Acquisition related matters |
(8,374 |
) |
|
(146 |
) |
|
(10,483 |
) |
|
(146 |
) |
||||
Non-GAAP Sales and marketing |
106,038 |
|
|
83,377 |
|
|
386,572 |
|
|
298,029 |
|
||||
As a % of total revenues non-GAAP |
41.9 |
% |
|
44.2 |
% |
|
42.8 |
% |
|
44.2 |
% |
||||
|
|
|
|
|
|
|
|
||||||||
GAAP General and administrative |
41,626 |
|
|
28,789 |
|
|
142,027 |
|
|
102,773 |
|
||||
Share-based compensation |
(9,167 |
) |
|
(5,802 |
) |
|
(31,156 |
) |
|
(20,807 |
) |
||||
Acquisition related matters |
(1,947 |
) |
|
(794 |
) |
|
(4,955 |
) |
|
(2,536 |
) |
||||
Non-GAAP General and administrative |
30,512 |
|
|
22,193 |
|
|
105,916 |
|
|
79,430 |
|
||||
As a % of total revenues non-GAAP |
12.1 |
% |
|
11.8 |
% |
|
11.7 |
% |
|
11.8 |
% |
||||
Income (loss) from operations reconciliation |
|
|
|
|
|
|
|
||||||||
GAAP loss from operations |
(20,369 |
) |
|
(3,404 |
) |
|
(45,675 |
) |
|
(16,436 |
) |
||||
Share-based compensation |
29,664 |
|
|
18,709 |
|
|
101,354 |
|
|
68,088 |
|
||||
Amortization of acquisition intangibles |
4,239 |
|
|
1,003 |
|
|
10,718 |
|
|
4,346 |
|
||||
Acquisition related matters |
10,743 |
|
|
978 |
|
|
16,276 |
|
|
2,720 |
|
||||
Non-GAAP Income from operations |
24,277 |
|
|
17,286 |
|
|
82,673 |
|
|
58,718 |
|
||||
Non-GAAP Operating margin |
9.6 |
% |
|
9.2 |
% |
|
9.2 |
% |
|
8.7 |
% |
TABLE 5
|
|||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
Net (loss) income reconciliation |
|
|
|
|
|
|
|
||||||||
GAAP net loss |
$ |
(25,257 |
) |
|
$ |
(5,678 |
) |
|
$ |
(53,607 |
) |
|
$ |
(26,203 |
) |
Share-based compensation |
29,664 |
|
|
18,709 |
|
|
101,354 |
|
|
68,088 |
|
||||
Amortization of acquisition intangibles |
4,239 |
|
|
1,003 |
|
|
10,718 |
|
|
4,346 |
|
||||
Acquisition related matters |
21,300 |
|
|
978 |
|
|
26,833 |
|
|
2,720 |
|
||||
Amortization of debt discount and issuance costs |
5,188 |
|
|
4,915 |
|
|
20,337 |
|
|
15,918 |
|
||||
Gain associated with investments and strategic partnerships |
(8,343 |
) |
|
— |
|
|
(8,343 |
) |
|
— |
|
||||
Intercompany remeasurement loss (gain) |
(383 |
) |
|
309 |
|
|
(119 |
) |
|
1,183 |
|
||||
Income tax expense effects (1) |
(6,105 |
) |
|
— |
|
|
(24,446 |
) |
|
— |
|
||||
Non-GAAP net income |
$ |
20,303 |
|
|
$ |
20,236 |
|
|
$ |
72,727 |
|
|
$ |
66,052 |
|
Reconciliation between GAAP and non-GAAP weighted average shares used in computing basic and diluted net (loss) income per common share: |
|
|
|
|
|
|
|
||||||||
Weighted average number of shares used in computing basic net (loss) income per share |
85,449 |
|
|
80,638 |
|
|
83,130 |
|
|
79,500 |
|
||||
Effect of dilutive securities |
5,783 |
|
|
5,694 |
|
|
5,393 |
|
|
6,341 |
|
||||
Non-GAAP weighted average shares used in computing non-GAAP diluted net income per share |
91,232 |
|
|
86,332 |
|
|
88,523 |
|
|
85,841 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Diluted net (loss) income per share |
|
|
|
|
|
|
|
||||||||
GAAP net loss per share |
$ |
(0.30 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.64 |
) |
|
$ |
(0.33 |
) |
Non-GAAP net income per share |
$ |
0.22 |
|
|
$ |
0.23 |
|
|
$ |
0.82 |
|
|
$ |
0.77 |
|
(1) Income tax expense effects include the tax benefit from release of valuation allowance.
TABLE 6
|
|||||||||||
|
Q1 2020 |
|
FY 2020 |
||||||||
|
|
|
|
|
|
|
|
||||
GAAP revenues |
257.0 |
|
|
259.0 |
|
|
1,125.0 |
|
|
1,135.0 |
|
|
|
|
|
|
|
|
|
||||
GAAP loss from operations |
(26.4 |
) |
|
(24.5 |
) |
|
(123.0 |
) |
|
(108.9 |
) |
GAAP operating margin |
(10.3 |
%) |
|
(9.5 |
%) |
|
(10.9 |
%) |
|
(9.6 |
%) |
Share-based compensation |
38.0 |
|
|
37.0 |
|
|
195.0 |
|
|
185.0 |
|
Amortization of acquisition intangibles |
9.0 |
|
|
8.5 |
|
|
36.0 |
|
|
34.0 |
|
Acquisition related matters |
— |
|
|
— |
|
|
— |
|
|
— |
|
Non-GAAP income from operations |
20.6 |
|
|
21.0 |
|
|
108.0 |
|
|
110.1 |
|
Non-GAAP operating margin |
8.0 |
% |
|
8.1 |
% |
|
9.6 |
% |
|
9.7 |
% |
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