Attached files
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| 8-K - 8-K - OPOWER, INC. | d163755d8k.htm |
Exhibit 99.1
Opower Announces First Quarter 2016 Financial Results
Arlington, Va. — May 9, 2016 — Opower (NYSE: OPWR), the global leader in cloud-based software for the utility industry, today announced its financial results for the first quarter ended March 31, 2016.
First Quarter 2016 Financial Highlights
| • | Total revenue was $36.7 million, an increase of 10 percent from the comparable period in 2015. |
| • | GAAP operating loss was $11.8 million, compared to $9.9 million for the comparable period in 2015. |
| • | Non-GAAP operating loss was $4.7 million, compared to $4.9 million for the comparable period in 2015. |
| • | GAAP net loss was $11.2 million, compared to $11.0 million for the comparable period in 2015. GAAP net loss per share was $0.21, based on diluted weighted-average shares outstanding of 52.9 million. This compares to a GAAP net loss per share of $0.22 for the comparable period in 2015. |
| • | Non-GAAP net loss was $4.1 million, compared with $6.0 million for the comparable period in 2015. Non-GAAP net loss per diluted share was $0.08, based on diluted weighted-average shares outstanding of 52.9 million. This compares to a non-GAAP net loss per share of $0.12 for the comparable period in 2015. |
| • | Adjusted EBITDA was $(1.7) million, compared to $(2.4) million for the comparable period in 2015. |
| • | The Company had $89.6 million in cash, cash equivalents, and investments at March 31, 2016. |
Conference Call Information
As a result of the earlier announcement that Oracle plans to purchase Opower, the conference call previously scheduled for today to discuss Opower’s financial results has been canceled.
Non-GAAP Financial Measures
This press release contains the following non-GAAP financial measures: Non-GAAP operating loss, non-GAAP net loss, non-GAAP net loss per share, non-GAAP weighted-average common shares outstanding and adjusted EBITDA.
We define non-GAAP operating loss, non-GAAP net loss and non-GAAP net loss per share as excluding the impact of stock-based compensation. The weighted-average shares outstanding used to calculate non-GAAP net loss per share gives effect to the conversion of the preferred stock as of the beginning of each of the periods presented, if any.
We define adjusted EBITDA as net loss adjusted to exclude our income tax provision, other income (expense), including interest, depreciation and amortization, and stock-based compensation.
We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Opower’s financial condition and results of operations. We use these non-GAAP measures for financial, operational and budgetary decision-making purposes, and to compare our performance to that of prior periods for trend analyses. We believe that these non-GAAP financial measures provide useful information regarding past financial performance and future prospects, and permit us to analyze key financial metrics used to make operational decisions more thoroughly. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other software companies, many of which disclose similar non-GAAP financial measures.
We do not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is their exclusion of significant income and expenses that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management on which income and expenses are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. We urge investors to review the reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures that is included in this press release, and not to rely on any single financial measure to evaluate our business.
About Opower
Opower (NYSE: OPWR) is an enterprise software company that helps utilities elevate the customer experience. Energy providers use Opower’s customer engagement platform to deliver proactive, digital communications that raise customer satisfaction, manage energy demand, and lower service costs.Opower’s software is deployed to 100 utilities worldwide and reaches more than 60 million homes and businesses. For more information, please visit www.opower.com and follow us on Twitter at @Opower.
OPOWER, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
| March 31, 2016 |
December 31, 2015 |
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| Assets |
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| Current assets: |
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| Cash and cash equivalents |
$ | 17,057 | $ | 25,931 | ||||
| Short-term investments |
43,729 | 35,017 | ||||||
| Accounts receivable, net |
47,705 | 52,655 | ||||||
| Prepaid expenses and other current assets |
6,442 | 5,528 | ||||||
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| Total current assets |
114,933 | 119,131 | ||||||
| Long-term investments |
28,805 | 36,464 | ||||||
| Property and equipment, net |
19,170 | 17,879 | ||||||
| Other assets |
737 | 287 | ||||||
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| Total assets |
$ | 163,645 | $ | 173,761 | ||||
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| Liabilities and Stockholders’ Equity |
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| Current liabilities: |
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| Accounts payable |
$ | 1,959 | $ | 2,273 | ||||
| Accrued expenses |
6,090 | 7,403 | ||||||
| Deferred revenue |
73,154 | 71,646 | ||||||
| Accrued compensation and benefits |
5,568 | 10,874 | ||||||
| Other current liabilities |
1,256 | 1,659 | ||||||
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| Total current liabilities |
88,027 | 93,855 | ||||||
| Deferred revenue |
2,066 | 1,676 | ||||||
| Other liabilities |
123 | 95 | ||||||
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| Total liabilities |
90,216 | 95,626 | ||||||
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| Stockholders’ equity: |
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| Preferred stock |
— | — | ||||||
| Common stock |
— | — | ||||||
| Additional paid-in capital |
254,795 | 248,521 | ||||||
| Accumulated deficit |
(181,004 | ) | (169,853 | ) | ||||
| Accumulated other comprehensive loss |
(362 | ) | (533 | ) | ||||
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| Total stockholders’ equity |
73,429 | 78,135 | ||||||
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| Total liabilities and stockholders’ equity |
$ | 163,645 | $ | 173,761 | ||||
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OPOWER, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited, in thousands, except per share data)
| Three Months Ended March 31, |
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| 2016 | 2015 | |||||||
| Revenue: |
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| Subscription |
$ | 31,812 | $ | 30,386 | ||||
| Services |
4,877 | 3,035 | ||||||
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| Total revenue |
36,689 | 33,421 | ||||||
| Cost of revenue (1): |
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| Subscription |
10,198 | 8,430 | ||||||
| Services |
4,378 | 3,584 | ||||||
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| Total cost of revenue |
14,576 | 12,014 | ||||||
| Gross profit |
22,113 | 21,407 | ||||||
| Operating expenses (1): |
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| Sales and marketing |
15,861 | 14,501 | ||||||
| Research and development |
13,311 | 12,213 | ||||||
| General and administrative |
4,729 | 4,575 | ||||||
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| Total operating expenses |
33,901 | 31,289 | ||||||
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| Operating loss |
(11,788 | ) | (9,882 | ) | ||||
| Other income (expense): |
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| Loss on foreign currency |
569 | (1,032 | ) | |||||
| Interest expense |
(29 | ) | (1 | ) | ||||
| Other, net |
98 | (4 | ) | |||||
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| Loss before income taxes |
(11,150 | ) | (10,919 | ) | ||||
| Provision for (benefit from) income taxes |
1 | 55 | ||||||
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| Net loss |
$ | (11,151 | ) | $ | (10,974 | ) | ||
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| Weighted-average common stock outstanding: |
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| Basic and diluted |
52,939 | 50,523 | ||||||
| Net loss per share: |
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| Basic and diluted |
$ | (0.21 | ) | $ | (0.22 | ) | ||
| (1) | Stock-based compensation was allocated as follows: |
| Three Months Ended March 31, |
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| 2016 | 2015 | |||||||
| Cost of revenue - Subscription |
$ | 318 | $ | 147 | ||||
| Cost of revenue - Services |
406 | 265 | ||||||
| Sales and marketing |
2,854 | 1,888 | ||||||
| Research and development |
2,355 | 1,658 | ||||||
| General and administrative |
1,158 | 1,046 | ||||||
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| Total stock-based compensation |
$ | 7,091 | $ | 5,004 | ||||
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OPOWER, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited, in thousands)
| Three Months Ended March 31, |
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| 2016 | 2015 | |||||||
| Operating Activities |
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| Net loss |
$ | (11,151 | ) | $ | (10,974 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: |
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| Depreciation and amortization |
2,966 | 2,520 | ||||||
| Stock-based compensation expense |
7,091 | 5,004 | ||||||
| Other |
(422 | ) | 1,036 | |||||
| Changes in operating assets and liabilities: |
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| Accounts receivable |
5,103 | 17,437 | ||||||
| Prepaid expenses and other current assets |
(868 | ) | (882 | ) | ||||
| Other assets |
(461 | ) | (87 | ) | ||||
| Accounts payable |
(318 | ) | 585 | |||||
| Accrued expenses |
(1,217 | ) | (1,177 | ) | ||||
| Accrued compensation and benefits |
(5,308 | ) | (1,686 | ) | ||||
| Deferred revenue |
1,860 | (6,124 | ) | |||||
| Other liabilities |
(192 | ) | (376 | ) | ||||
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| Net cash used in operating activities |
(2,917 | ) | 5,276 | |||||
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| Investing Activities |
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| Purchases of available-for-sale securities |
(9,431 | ) | — | |||||
| Sales and maturities of available-for-sale securities |
8,442 | — | ||||||
| Additions to property and equipment |
(4,107 | ) | (2,366 | ) | ||||
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| Net cash used in investing activities |
(5,096 | ) | (2,366 | ) | ||||
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| Financing Activities |
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| Proceeds from issuance of common stock |
720 | 835 | ||||||
| Taxes paid related to net share settlement of equity awards |
(1,803 | ) | (1,135 | ) | ||||
| Principal payments on capital lease obligations |
(183 | ) | (110 | ) | ||||
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| Net cash provided by (used in) financing activities |
(1,266 | ) | (410 | ) | ||||
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| Effect of exchange rate changes on cash and cash equivalents |
405 | (830 | ) | |||||
| Net increase (decrease) in cash and cash equivalents |
(8,874 | ) | 1,670 | |||||
| Cash and cash equivalents, beginning of period |
25,931 | 125,725 | ||||||
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| Cash and cash equivalents, end of period |
$ | 17,057 | $ | 127,395 | ||||
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OPOWER, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited, in thousands, except per share data)
| Three Months Ended March 31, |
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| 2016 | 2015 | |||||||
| Reconciliation of Net Loss to Adjusted EBITDA: |
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| Net loss |
$ | (11,151 | ) | $ | (10,974 | ) | ||
| Provision for (benefit from) income taxes |
1 | 55 | ||||||
| Other (income) expense, including interest |
(638 | ) | 1,037 | |||||
| Depreciation and amortization |
2,966 | 2,520 | ||||||
| Stock-based compensation |
7,091 | 5,004 | ||||||
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| Adjusted EBITDA |
$ | (1,731 | ) | $ | (2,358 | ) | ||
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| Reconciliation of Cost of Revenue to Non-GAAP Cost of Revenue: |
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| Cost of revenue |
$ | 14,576 | $ | 12,014 | ||||
| Less: Stock-based compensation |
724 | 412 | ||||||
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| Non-GAAP cost of revenue |
$ | 13,852 | $ | 11,602 | ||||
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| Reconciliation of Subscription Gross Margin to Non-GAAP Subscription Gross Margin: |
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| Subscription gross margin |
67.9 | % | 72.3 | % | ||||
| Add back: Subscription stock-based compensation |
1.0 | % | 0.4 | % | ||||
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| Non-GAAP Subscription gross margin |
68.9 | % | 72.7 | % | ||||
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| Reconciliation of Services Gross Margin to Non-GAAP Services Gross Margin: |
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| Services gross margin |
10.2 | % | -18.1 | % | ||||
| Add back: Services stock-based compensation |
8.3 | % | 8.7 | % | ||||
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| Non-GAAP Services gross margin |
18.5 | % | -9.4 | % | ||||
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| Reconciliation of Gross Margin to Non-GAAP Gross Margin: |
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| Gross margin |
60.3 | % | 64.1 | % | ||||
| Add back: Stock-based compensation |
2.0 | % | 1.2 | % | ||||
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| Non-GAAP gross margin |
62.3 | % | 65.3 | % | ||||
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| Reconciliation of Operating Expenses to Non-GAAP Operating Expenses: |
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| Operating expenses |
$ | 33,901 | $ | 31,289 | ||||
| Less: Stock-based compensation |
6,367 | 4,592 | ||||||
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| Non-GAAP operating expenses |
$ | 27,534 | $ | 26,697 | ||||
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| Reconciliation of Operating Loss to Non-GAAP Operating Loss: |
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| Operating loss |
$ | (11,788 | ) | $ | (9,882 | ) | ||
| Add back: Stock-based compensation |
7,091 | 5,004 | ||||||
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| Non-GAAP operating loss |
$ | (4,697 | ) | $ | (4,878 | ) | ||
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| Reconciliation of Net Loss to Non-GAAP Net Loss: |
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| Net loss |
$ | (11,151 | ) | $ | (10,974 | ) | ||
| Add back: Stock-based compensation |
7,091 | 5,004 | ||||||
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| Non-GAAP net loss |
$ | (4,060 | ) | $ | (5,970 | ) | ||
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| Shares used in computing Non-GAAP Per Share Amounts: |
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| Weighted-average common stock outstanding, basic and diluted |
52,939 | 50,523 | ||||||
| Add: Additional weighted-average shares giving effect to the conversion of preferred stock as of the beginning of the period |
— | — | ||||||
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| Non-GAAP weighted-average common stock outstanding, basic and diluted |
52,939 | 50,523 | ||||||
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| Non-GAAP net loss per share |
$ | (0.08 | ) | $ | (0.12 | ) | ||
Source: Opower
Investor Contact
Charlie Mayer
571-483-5200
investor@opower.com
Media Contact
Alex Kotran
alex.kotran@opower.com
