Attached files
| file | filename |
|---|---|
| 8-K - 8-K - ExactTarget, Inc. | q4form8-k.htm |
ExactTarget Announces Fourth Quarter and Full Year 2012 Results
Fourth Quarter Adjusted Revenue Increased 44% Year-Over-Year to $85.8 Million, Full-Year Adjusted Revenue Increased 42% to $293.8 Million
INDIANAPOLIS (Feb. 21, 2013) – ExactTarget (NYSE:ET), a leading global provider of cross-channel digital marketing software-as-a-service solutions, announced results today for its fourth quarter and full year ended December 31, 2012.
"ExactTarget's record fourth quarter and full-year revenue reinforce our position as the largest pure play marketing SaaS provider in the world," said Scott Dorsey, ExactTarget chairman, chief executive officer and co-founder. "With strong customer response to our new innovations and recent acquisitions, we have become the digital marketing platform of choice and positioned ourselves for another strong year of growth."
Fourth Quarter 2012 Financial Highlights:
Three Months Ended December 31, 2012:
• | Revenue: $84.2 million, a 42 percent increase compared to the fourth quarter of 2011. Non-U.S. revenue was $15.6 million, a 47 percent increase compared to the fourth quarter of 2011. |
• | Adjusted Revenue: $85.8 million, a 44 percent increase compared to the fourth quarter of 2011, before the $1.5 million impact of adjusting deferred revenue to fair value under purchase accounting. |
• | Recurring Subscription Revenue: $66.7 million (excludes $2.1 million of revenue related to utilization above the contracted level), a 46 percent increase compared to the fourth quarter of 2011. Adjusted recurring subscription revenue was $68.2 million, a 49 percent increase compared to the fourth quarter of 2011, before the $1.5 million impact of adjusting deferred revenue to fair value under purchase accounting. |
• | Net (Loss) / Income: $(13.0) million compared to $(6.1) million in the fourth quarter of 2011. Net (Loss) / Income attributable to common stockholders in the fourth quarter of 2012 was $(0.19) per share on a basic and diluted basis, compared to $(0.68) per share on a basic and diluted basis in the fourth quarter of 2011. |
• | Adjusted Net (Loss) / Income: $(6.8) million, or $(0.10) per share on a basic and diluted basis, compared to $(3.8) million, or $(0.42) per share on a basic and diluted basis, in the fourth quarter of 2011. |
• | Operating Cash Flow: $8.0 million compared to $(4.6) million in the fourth quarter of 2011. |
• | Adjusted EBITDA: $(0.5) million compared to $0.8 million in the fourth quarter of 2011. |
Twelve Months Ended December 31, 2012:
• | Revenue: $292.3 million, a 41 percent increase compared to 2011. Non-U.S. revenue was $53.1 million, an 84 percent increase compared to 2011. |
• | Adjusted Revenue: $293.8 million, a 42 percent increase compared to 2011, before the $1.5 million impact of adjusting deferred revenue to fair value under purchase accounting. |
• | Recurring Subscription Revenue: $228.7 million (excludes $5.5 million of revenue related to utilization above the contracted level), a 42 percent increase compared to 2011. Adjusted recurring subscription revenue was $230.2 million, a 43 percent increase compared to 2011, before the $1.5 million impact of adjusting deferred revenue to fair value under purchase accounting. |
• | Net (Loss) / Income: $(21.0) million compared to $(35.4) million in 2011. Net (Loss) / Income attributable to common stockholders in 2012 was $(0.39) per share on a basic and diluted basis, compared to $(4.05) per share on a basic and diluted basis in 2011. |
• | Adjusted Net (Loss) / Income: $(6.2) million, or $(0.11) per share on a basic and diluted basis, compared to $(27.3) million, or $(3.12) per share on a basic and diluted basis, in 2011. |
• | Operating Cash Flow: $22.7 million compared to $(2.8) million in 2011. |
• | Adjusted EBITDA: $15.7 million compared to $(0.1) million in 2011. |
Recent Business Highlights:
• | Completed the acquisition of privately-held business-to-business marketing automation provider Pardot, expanding ExactTarget's product suite with Pardot's solution to create, deploy and manage online lead nurturing campaigns through integrations with salesforce.com, Microsoft Dynamics CRM, NetSuite and SugarCRM. |
• | Completed the acquisition of privately-held Web personalization provider iGoDigital, expanding ExactTarget's product suite with iGoDigital's advanced product recommendations solutions and predictive analytics to power cross-channel personalization and optimization. |
• | Expanded the company's mobile marketing suite with the launch of MobilePush, an enterprise application to power data-driven push notifications to apps on smartphones and tablets. |
• | Expanded its global multi-lingual enterprise digital marking platform with the addition of a French-Canadian user interface, making its email, mobile, social media and data management applications now available in English, Brazilian Portuguese, German, French and French-Canadian. |
• | Expanded the company's global footprint with new offices in Paris and Stockholm, bringing the number of non-U.S. offices to eight (Australia (two), Brazil, Canada, France, Germany, United Kingdom and Sweden). |
• | Hosted three client conferences in the fourth quarter with more than 4,000 attendees at Connections 2012, and strong attendance at Connections UK and Pardot's Elevate Conference. |
Business Outlook:
As of February 21, 2013, ExactTarget is issuing guidance for its first quarter of 2013 and full-year 2013.
• | First Quarter 2013: |
◦ | Adjusted Revenue: expected to be $87.0 million to $88.0 million, excluding the impact of adjusting deferred revenue to fair value under purchase accounting. |
◦ | Adjusted Net (Loss) / Income: expected to be $(6.0) million to $(7.0) million. Adjusted Net (Loss) / Income excludes the effects of stock-based compensation expense, amortization of intangibles, and the impact of adjusting deferred revenue to fair value under purchase accounting. |
◦ | Adjusted Net (Loss) / Income per Share: expected to be $(0.09) per share to $(0.10) per share on a basic and diluted basis assuming weighted average shares outstanding of approximately 69 million shares. |
• | Full Year 2013: |
◦ | Adjusted Revenue: expected to be $370.0 million to $374.0 million, excluding the impact of adjusting deferred revenue to fair value under purchase accounting. |
◦ | Adjusted Net (Loss) / Income: expected to be $(20.0) million to $(22.0) million. Adjusted Net (Loss) / Income excludes the effects of stock-based compensation expense, amortization of intangibles, and the impact of adjusting deferred revenue to fair value under purchase accounting. |
◦ | Adjusted Net (Loss) / Income per Share: expected to be $(0.29) per share to $(0.31) per share on a basic and diluted basis. This assumes weighted average shares outstanding of approximately 70 million shares. |
Conference Call Information
What: ExactTarget Fourth Quarter 2012 Financial Results Conference Call
What: ExactTarget Fourth Quarter 2012 Financial Results Conference Call
When: Thursday, February 21, 2013
Time: 5 p.m. Eastern
866.831.6267 (Domestic)
617.213.8857 (International)
Webcast: www.ExactTarget.com/Investor (Live and Replay)
Replay: 888.286.8010, Conference ID 16981124 (Domestic)
617.801.6888, Conference ID 16981124 (International)
NOTE: Audio replay will be available until February 28, 2013
About ExactTarget
ExactTarget is a leading global provider of cross-channel digital marketing software-as-a-service solutions that empower organizations of all sizes to communicate with their customers through email, mobile, social media, Web and marketing automation. ExactTarget's suite of integrated applications enable marketers to plan, automate, deliver and optimize data-driven digital marketing and real-time communications to drive customer engagement, increase sales and improve return on marketing investment. Headquartered in Indianapolis, Indiana with offices in North America, Europe, South America and Australia, ExactTarget trades on the New York Stock Exchange under the ticker symbol “ET.” For more information, visit www.ExactTarget.com.
Website Information
We routinely post important information for investors on our website www.ExactTarget.com in the "Investor Relations" section. We intend to use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation Fair Disclosure. Accordingly, investors should monitor the Investor Relations section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
Non-GAAP Financial Measures
This press release includes information about non-GAAP financial measures, including Adjusted Revenue, Adjusted Recurring Subscription Revenue, Non-GAAP margins, Non-GAAP Operating Expenses, Adjusted EBITDA, Adjusted Net (Loss) / Income and Adjusted Net (Loss) / Income per Share. We believe these measures provide important supplemental information regarding our operating performance and are often used by investors and analysts in their evaluation of companies such as ours. In addition, we use Adjusted EBITDA as a key measurement of our operating performance because it assists us in comparing our operating performance on a consistent basis by removing the impact of certain non-cash and non-operating items. Adjusted Revenue is calculated as GAAP revenue plus the impact of adjusting deferred revenue to fair value under purchase accounting. Adjusted Recurring Subscription Revenue is a key metric we use to evaluate our business. It is defined as the total amount of contractually-committed subscription revenue under each of our client agreements, plus the impact of adjusting deferred revenue to fair value under purchase accounting, less revenue related to utilization above the contracted level. Non-GAAP margins and Non-GAAP Operating Expenses are calculated after adjusting for the impact of certain non-cash items such as stock-based compensation and amortization of intangibles, and in the case of Non-GAAP margins, adding back the impact of adjusting deferred revenue to fair value under purchase accounting. Adjusted EBITDA is calculated as Net (Loss) / Income before (1) other (income) expense, which includes interest income, interest expense and other income and expense, (2) income tax expense (benefit), (3) depreciation and amortization of property and equipment, (4) amortization of intangible assets, (5) stock-based compensation, and (6) the impact of adjusting deferred revenue to fair value under purchase accounting. Adjusted Net (Loss) / Income is calculated as Net (Loss) / Income before (1) amortization of intangible assets, (2) stock-based compensation, and (3) the impact of adjusting deferred revenue to fair value under purchase accounting. Adjusted Net (Loss) / Income per Share is calculated as Adjusted Net (Loss) / Income divided by weighted average shares outstanding on a GAAP basis. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Adjusted Revenue, Adjusted Recurring Subscription Revenue, Non-GAAP margins, Non-GAAP Operating Expenses, Adjusted EBITDA, Adjusted Net (Loss) / Income and Adjusted Net (Loss) / Income per Share reflect an additional way of viewing aspects of our operations that we believe, when viewed with our GAAP results and the accompanying reconciliations to corresponding GAAP financial measures set forth on the last page of this press release, provide a more complete understanding of factors and trends affecting our business.
Safe Harbor Statement
This press release contains forward-looking statements about expected financial metrics such as Adjusted Revenue, Adjusted Recurring Subscription Revenue, Non-GAAP margins, Non-GAAP Operating Expenses, Adjusted EBITDA, Adjusted Net (Loss) / Income and Adjusted Net (Loss) / Income per Share. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, the company’s results could differ materially from the results expressed or implied by the forward-looking statements we make. The risks and uncertainties referred to above include - but are not limited to - risks associated with: possible fluctuations in the company’s financial and operating performance; attracting and retaining clients; defects or errors in the company’s solutions; unexpected decreases in clients’ use of email; ability to gain customer acceptance of cross-channel marketing; changes in domestic and international data privacy regulations; compromises of the company’s security measures; infrastructure scalability; third-party hardware and software; competition; the company’s ability to hire, retain and motivate employees and manage the company’s domestic and international growth; successful client deployment and utilization of the company’s existing and future solutions; changes in the company’s sales cycle; various financial aspects of the company’s subscription model; unexpected increases in attrition or decreases in new business; the emerging markets in which the company operates; unique aspects of entering or expanding in international markets; litigation related to intellectual property and other matters, and any related claims, negotiations and settlements; unanticipated changes in the company’s effective tax rate; fluctuations in the number of shares we have outstanding and the price of such shares; foreign currency exchange rates; interest rates; and general developments in the economy, financial markets, and credit markets. Further information on these and other factors that could affect the company’s financial results is included in our most recent quarterly report on Form 10-Q, as filed with the Securities and Exchange Commission ("SEC"). Additional information will also be set forth in our annual report on Form 10-K for the fiscal year ended Dec. 31, 2012, and other filings that we make with the SEC. These documents are or will be available on the SEC Filings section of the Investor Information section of the company’s website at www.ExactTarget.com/investor.
Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that the expectations will be attained or that any deviation will not be material. ExactTarget, Inc. assumes no obligation and does not intend to update these forward-looking statements.
Media Contact:
Kari Brownsberger (Finn Partners) 312.329.3980 or MediaRelations@ExactTarget.com
Investor Contact:
Mitch Frazier (ExactTarget) – 317.275.5034 or Investor@ExactTarget.com
EXACTTARGET, INC.
Condensed Consolidated Balance Sheets
(in thousands, except share data)
As of December 31, | |||||||
2012 | 2011 | ||||||
Assets | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 69,192 | $ | 60,705 | |||
Short-term investments | 40,217 | — | |||||
Accounts receivable, net | 55,911 | 43,380 | |||||
Prepaid expenses | 11,378 | 8,703 | |||||
Other current assets | 3,219 | 2,483 | |||||
Total current assets | 179,917 | 115,271 | |||||
Property and equipment, net | 67,944 | 54,616 | |||||
Goodwill | 108,222 | 18,447 | |||||
Intangible assets, net | 27,352 | 3,286 | |||||
Other assets | 3,631 | 1,664 | |||||
Total assets | $ | 387,066 | $ | 193,284 | |||
Liabilities and Stockholders’ Equity | |||||||
Current Liabilities: | |||||||
Accounts payable | $ | 9,070 | $ | 8,124 | |||
Accrued liabilities | 12,874 | 10,725 | |||||
Accrued compensation and related expenses | 18,503 | 14,167 | |||||
Current portion of long-term obligations and other | 1,464 | 4,787 | |||||
Deferred revenue | 57,592 | 39,273 | |||||
Total current liabilities | 99,503 | 77,076 | |||||
Long-term obligations and other | 5,946 | 5,134 | |||||
Long-term portion of debt | — | 13,333 | |||||
Total liabilities | 105,449 | 95,543 | |||||
Redeemable convertible preferred stock | — | 63,000 | |||||
Stockholders' equity: | |||||||
Common stock | 34 | 5 | |||||
Preferred stock | — | 164,894 | |||||
Additional paid in capital | 449,801 | 17,031 | |||||
Accumulated other comprehensive loss | (1,122 | ) | (1,051 | ) | |||
Accumulated deficit | (167,096 | ) | (146,138 | ) | |||
Total stockholders’ equity | 281,617 | 34,741 | |||||
Total liabilities and stockholders’ equity | $ | 387,066 | $ | 193,284 | |||
EXACTTARGET, INC.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share data)
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||
Revenue: | |||||||||||||
Subscription | $ | 68,784 | $ | 47,709 | $ | 234,222 | $ | 170,696 | |||||
Professional services | 15,458 | 11,799 | 58,050 | 36,797 | |||||||||
Total revenue | 84,242 | 59,508 | 292,272 | 207,493 | |||||||||
Cost of revenue: | |||||||||||||
Subscription | 17,848 | 11,845 | 56,770 | 40,333 | |||||||||
Professional services | 13,376 | 8,755 | 46,830 | 29,862 | |||||||||
Total cost of revenue | 31,224 | 20,600 | 103,600 | 70,195 | |||||||||
Gross profit | 53,018 | 38,908 | 188,672 | 137,298 | |||||||||
Operating expenses: | |||||||||||||
Sales and marketing | 36,085 | 25,335 | 115,312 | 93,559 | |||||||||
Research and development | 17,376 | 11,239 | 54,022 | 41,390 | |||||||||
General and administrative | 12,290 | 7,903 | 39,725 | 25,985 | |||||||||
Total operating expenses | 65,751 | 44,477 | 209,059 | 160,934 | |||||||||
Operating loss | (12,733 | ) | (5,569 | ) | (20,387 | ) | (23,636 | ) | |||||
Other expense, net | (219 | ) | (318 | ) | (571 | ) | (1,001 | ) | |||||
Loss before taxes | (12,952 | ) | (5,887 | ) | (20,958 | ) | (24,637 | ) | |||||
Income tax expense | — | 258 | — | 10,798 | |||||||||
Net loss | $ | (12,952 | ) | $ | (6,145 | ) | $ | (20,958 | ) | $ | (35,435 | ) | |
Net loss per common share: | |||||||||||||
Basic and diluted | $ | (0.19 | ) | $ | (0.68 | ) | $ | (0.39 | ) | $ | (4.05 | ) | |
Weighted average number of common shares outstanding—basic and diluted | 68,112,725 | 9,005,440 | 53,856,234 | 8,750,540 | |||||||||
(1) Includes stock-based compensation expense as follows:
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||
Cost of revenue - subscription | $ | 81 | $ | 82 | $ | 345 | $ | 351 | |||||
Cost of revenue - professional services | 306 | 176 | 1,033 | 704 | |||||||||
Sales and marketing | 877 | 621 | 3,179 | 2,265 | |||||||||
Research and development | 917 | 501 | 2,183 | 1,511 | |||||||||
General and administrative | 1,277 | 632 | 4,442 | 2,123 | |||||||||
Total stock-based compensation | $ | 3,458 | $ | 2,012 | $ | 11,182 | $ | 6,954 | |||||
(2) Includes intangible asset amortization expense as follows:
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||
Cost of revenue - subscription | $ | 799 | $ | 75 | $ | 1,024 | $ | 300 | |||||
Sales and marketing | 322 | 133 | 704 | 372 | |||||||||
General and administrative | 66 | 113 | 354 | 481 | |||||||||
Total intangible amortization expense | $ | 1,187 | $ | 321 | $ | 2,082 | $ | 1,153 | |||||
EXACTTARGET, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||
Cash flows from operating activities: | |||||||||||||
Net loss | $ | (12,952 | ) | $ | (6,145 | ) | $ | (20,958 | ) | $ | (35,435 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||||
Depreciation and amortization | 7,241 | 4,390 | 23,356 | 16,623 | |||||||||
Lease incentives received from lessor | 202 | 364 | 336 | 637 | |||||||||
Provision for / (recovery of) bad debt and credit allowances | 284 | 1,621 | 1,861 | 2,271 | |||||||||
Stock-based compensation | 3,458 | 2,012 | 11,182 | 6,954 | |||||||||
Change in deferred taxes | — | — | — | 10,540 | |||||||||
Other | 166 | 11 | 204 | 87 | |||||||||
Changes in operating assets and liabilities: | |||||||||||||
Accounts receivable, net | (2,845 | ) | (8,521 | ) | (12,288 | ) | (17,260 | ) | |||||
Prepaid expenses and other assets | 2,061 | (1,406 | ) | (4,193 | ) | (6,007 | ) | ||||||
Accounts payable and accrued liabilities | (2,238 | ) | (1,456 | ) | 2,181 | 8,165 | |||||||
Accrued compensation and related expenses | 5,222 | 678 | 4,310 | 3,838 | |||||||||
Deferred revenue | 7,378 | 3,852 | 16,736 | 6,827 | |||||||||
Net cash provided by (used in) operating activities | 7,977 | (4,600 | ) | 22,727 | (2,760 | ) | |||||||
Cash flows from investing activities: | |||||||||||||
Business combination, net of cash acquired | (99,970 | ) | — | (100,776 | ) | (2,710 | ) | ||||||
Purchases of property and equipment | (12,911 | ) | (3,128 | ) | (32,455 | ) | (31,161 | ) | |||||
Purchases of marketable securities | (40,248 | ) | — | (40,248 | ) | — | |||||||
Net cash used in investing activities | (153,129 | ) | (3,128 | ) | (173,479 | ) | (33,871 | ) | |||||
Cash flows from financing activities: | |||||||||||||
Repayments on capital leases and notes payable | (183 | ) | (325 | ) | (770 | ) | (952 | ) | |||||
Net payments on term loan | — | (10,856 | ) | (9,967 | ) | (3,333 | ) | ||||||
Net proceeds from (payments on) on revolving line of credit | — | 9,804 | (6,700 | ) | 9,804 | ||||||||
Proceeds from issuance of stock from option exercises | 2,917 | 243 | 7,718 | 429 | |||||||||
Payments of contingent consideration | (402 | ) | — | (858 | ) | (1,394 | ) | ||||||
Proceeds from issuance of preferred stock, net of issuance costs | — | 39,973 | — | 69,935 | |||||||||
Proceeds from issuance of common stock, net of issuance costs | — | — | 169,709 | — | |||||||||
Net cash provided by financing activities | 2,332 | 38,839 | 159,132 | 74,489 | |||||||||
Effect of exchange rate changes on cash and cash equivalents | (7 | ) | 44 | 107 | 43 | ||||||||
Increase (decrease) in cash and cash equivalents | (142,827 | ) | 31,155 | 8,487 | 37,901 | ||||||||
Cash and cash equivalents, beginning of the period | 212,019 | 29,550 | 60,705 | 22,804 | |||||||||
Cash and cash equivalents, end of the period | $ | 69,192 | $ | 60,705 | $ | 69,192 | $ | 60,705 | |||||
EXACTTARGET, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands, except share and per share data)
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||
Revenue: | |||||||||||||
Subscription | $ | 68,784 | $ | 47,709 | $ | 234,222 | $ | 170,696 | |||||
Deferred revenue adjustment - purchase accounting | 1,523 | — | 1,523 | — | |||||||||
Adjusted subscription revenue | 70,307 | 47,709 | 235,745 | 170,696 | |||||||||
Professional services revenue | 15,458 | 11,799 | 58,050 | 36,797 | |||||||||
Total adjusted revenue | $ | 85,765 | $ | 59,508 | $ | 293,795 | $ | 207,493 | |||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||
Revenue: | |||||||||||||
United States | $ | 68,639 | $ | 48,868 | $ | 239,148 | $ | 178,623 | |||||
Deferred revenue adjustment - purchase accounting | 1,232 | — | 1,232 | — | |||||||||
Adjusted United States revenue | 69,871 | 48,868 | 240,380 | 178,623 | |||||||||
International | 15,603 | 10,640 | 53,124 | 28,870 | |||||||||
Deferred revenue adjustment - purchase accounting | 291 | — | 291 | — | |||||||||
Adjusted International revenue | 15,894 | 10,640 | 53,415 | 28,870 | |||||||||
Total adjusted revenue | $ | 85,765 | $ | 59,508 | $ | 293,795 | $ | 207,493 | |||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||
Recurring subscription revenue | $ | 66,670 | $ | 45,743 | $ | 228,722 | $ | 160,659 | |||||
Deferred revenue adjustment - purchase accounting | 1,523 | — | 1,523 | — | |||||||||
Adjusted recurring subscription revenue | $ | 68,193 | $ | 45,743 | $ | 230,245 | $ | 160,659 | |||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||
Gross margin: | |||||||||||||
Subscription gross margin | $ | 50,936 | $ | 35,864 | $ | 177,452 | $ | 130,363 | |||||
Deferred revenue adjustment - purchase accounting | 1,523 | — | 1,523 | — | |||||||||
Stock-based compensation | 81 | 82 | 345 | 351 | |||||||||
Intangible asset amortization | 799 | 75 | 1,024 | 300 | |||||||||
Non-GAAP subscription gross margin | 53,339 | 36,021 | 180,344 | 131,014 | |||||||||
Professional services gross margin | 2,082 | 3,044 | 11,220 | 6,935 | |||||||||
Stock-based compensation | 306 | 176 | 1,033 | 704 | |||||||||
Non-GAAP professional services gross margin | 2,388 | 3,220 | 12,253 | 7,639 | |||||||||
Total non-GAAP gross margin | $ | 55,727 | $ | 39,241 | $ | 192,597 | $ | 138,653 | |||||
EXACTTARGET, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures, continued
(in thousands, except share and per share data)
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||
Operating expenses | $ | 65,751 | $ | 44,477 | $ | 209,059 | $ | 160,934 | |||||
Stock-based compensation | (3,071 | ) | (1,754 | ) | (9,804 | ) | (5,899 | ) | |||||
Amortization of intangible assets | (388 | ) | (246 | ) | (1,058 | ) | (853 | ) | |||||
Non-GAAP operating expenses | $ | 62,292 | $ | 42,477 | $ | 198,197 | $ | 154,182 | |||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||
Net loss | $ | (12,952 | ) | $ | (6,145 | ) | $ | (20,958 | ) | $ | (35,435 | ) | |
Deferred revenue adjustment - purchase accounting | 1,523 | — | 1,523 | — | |||||||||
Stock-based compensation | 3,458 | 2,012 | 11,182 | 6,954 | |||||||||
Amortization of intangible assets | 1,187 | 321 | 2,082 | 1,153 | |||||||||
Adjusted net loss | (6,784 | ) | (3,812 | ) | (6,171 | ) | (27,328 | ) | |||||
Income tax expense | — | 258 | — | 10,798 | |||||||||
Depreciation and amortization of property and equipment | 6,054 | 4,069 | 21,274 | 15,470 | |||||||||
Other expense, net | 219 | 318 | 571 | 1,001 | |||||||||
Adjusted EBITDA | $ | (511 | ) | $ | 833 | $ | 15,674 | $ | (59 | ) | |||
Adjusted net (loss) / income per share - basic & diluted | $ | (0.10 | ) | $ | (0.42 | ) | $ | (0.11 | ) | $ | (3.12 | ) | |
Weighted average shares outstanding used in computing per share amounts - basic & diluted | 68,112,725 | 9,005,440 | 53,856,234 | 8,750,540 | |||||||||