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| 8-K - AMBER ROAD, INC. 8-K - Amber Road, Inc. | a51554994.htm |
Exhibit 99.1
Amber Road Announces First Quarter 2017 Financial Results
EAST RUTHERFORD, N.J.--(BUSINESS WIRE)--May 8, 2017--Amber Road, Inc. (NYSE: AMBR), a leading provider of global trade management (GTM) solutions, today announced its financial results for the first quarter ended March 31, 2017.
Jim Preuninger, Chief Executive Officer of Amber Road, stated, “We are off to a strong start to 2017. We are benefiting from the strategic investments we have made over the past several years to grow our global footprint, focus on verticals demonstrating exceptional demand, expand our product offerings, and extend our competitive differentiation with more trade content that is integrated to our software. Our flexible platform provides our customers with the capability to adapt to the ever-changing global supply chain and manage their global business more effectively. We are building momentum and are well positioned for a strong year.”
First Quarter 2017 Financial Highlights
Revenue
- Total revenue was $18.6 million, an increase compared to $17.0 million for the comparable period of 2016.
- Subscription revenue was $13.9 million, an increase compared to $12.4 million for the comparable period of 2016.
- Professional services revenue was $4.7 million, an increase compared to $4.5 million for the comparable period of 2016.
Operating Loss
- GAAP operating loss was $(4.0) million, compared to $(5.4) million for the comparable period of 2016.
- Non-GAAP adjusted operating loss(1) was $(2.7) million, compared to $(3.7) million for the comparable period of 2016.
Net Loss
- GAAP net loss was $(4.4) million, compared to $(5.7) million for the comparable period of 2016.
- GAAP basic and diluted net loss per common share was $(0.16), compared to $(0.22) for the comparable period of 2016, based on 27.2 million and 26.4 million basic and diluted weighted average common shares outstanding, respectively.
- Non-GAAP adjusted net loss(1) was $(3.2) million, compared to $(4.0) million for the comparable period of 2016.
- Non-GAAP adjusted net loss per common share was $(0.12), compared to $(0.15) for the comparable period of 2016, based on 27.2 million and 26.4 million basic and diluted weighted average common shares outstanding, respectively.
Adjusted EBITDA
- Adjusted EBITDA was $(1.2) million for the three months ended March 31, 2017 and $(2.1) million for the comparable period of 2016.
Balance Sheet and Cash Flow
- Cash and cash equivalents at March 31, 2017 totaled $15.0 million, compared to $15.4 million at December 31, 2016.
- Cash provided by operating activities was $0.8 million for the three months ended March 31, 2017, compared to cash provided by operating activities of $3.1 million for the three months ended March 31, 2016.
A reconciliation of GAAP operating loss and net loss to Non-GAAP adjusted operating loss and net loss, of GAAP net loss to Adjusted EBITDA and of GAAP total revenue to Non-GAAP total revenue has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”
Business Outlook
Based on information available as of May 8, 2017, Amber Road is issuing guidance for the second quarter and full year 2017. Refer to the reconciliation of GAAP guidance to non-GAAP guidance tables at the end of this release for details on non-GAAP adjustments.
Second Quarter 2017:
- Total revenue is expected to be in the range of $19.4 million to $20.0 million.
- Non-GAAP adjusted operating loss(1) is expected to be in the range of $(3.8) million to $(3.2) million.
- Non-GAAP adjusted net loss per common share is expected to be in the range of $(0.16) to $(0.14). This assumes 27.5 million basic and diluted shares outstanding.
Full Year 2017:
- Total revenue is expected to be in the range of $80.3 million to $83.3 million.
- Non-GAAP adjusted operating loss(1) is expected to be in the range of $(10.0) million to $(7.0) million.
- Non-GAAP adjusted net loss per common share is expected to be in the range of $(0.44) to $(0.33). This assumes 28.0 million basic and diluted shares outstanding.
Endnotes:
(1) For 2017, non-GAAP adjusted operating loss and adjusted net loss excludes stock-based compensation and change in fair value of contingent consideration liability. For 2016, non-GAAP adjusted operating loss and adjusted net loss excludes stock-based compensation, change in fair value of contingent consideration liability, purchase accounting deferred revenue adjustment, acquisition compensation costs and acquisition related costs.
Conference Call Information
Amber Road will host a conference call on Monday, May 8, 2017 at 5:00 p.m. Eastern Time (ET) to discuss the Company’s first quarter financial results and its business outlook. To access this call, dial (877)-723-9521 (domestic) or (719) 325-4804 (international). The conference ID is 3423921. Additionally, a live webcast of the conference call will be available in the “Investor Relations” section of the Company’s web site at www.AmberRoad.com.
Following the conference call, a replay will be available until May 15, 2017 at (844)-512-2921 (domestic) or (412)-317-6671 (international). The replay pass code is 3423921. An archived webcast of this conference call will also be available in the “Investor Relations” section of the Company’s web site at www.AmberRoad.com.
About Amber Road
Amber Road’s (NYSE: AMBR) mission is to improve the way companies manage their international supply chains and conduct global trade. As a leading provider of cloud based global trade management (GTM) solutions, we automate the global supply chain across sourcing, logistics, cross-border trade and regulatory compliance activities to dramatically improve operating efficiencies and financial performance. This includes collaborating with suppliers on development, sourcing and quality assurance; executing import and export compliance checks and generating international shipping documentation; booking international carriers and tracking goods as they move around the world; and minimizing the associated duties through preferential trade agreements and foreign trade zones. Our solution combines enterprise-class software, trade content sourced from government agencies and transportation providers in 147 countries, and a global supply chain network connecting our customers with their trading partners, including suppliers, testing/auditing firms, freight forwarders, customs brokers and transportation carriers. We deliver our GTM solution using a Software-as-a-Service (SaaS) model and leverage a highly flexible technology framework to quickly and efficiently meet our customers’ unique requirements around the world. For more information, please visit www.AmberRoad.com, email Solutions@AmberRoad.com or call 201-935-8588.
Non-GAAP Financial Measures
To provide investors with additional information regarding our financial results, Amber Road has provided non-GAAP financial measures and non-GAAP guidance within this press release including non-GAAP adjusted operating and net loss, adjusted EBITDA and non-GAAP total revenue, financial measures that are not calculated in accordance with generally accepted accounting principles, or GAAP. Provided below is a reconciliation of GAAP operating and net loss to non-GAAP adjusted operating and net loss, net loss to adjusted EBITDA and GAAP total revenue to Non-GAAP total revenue. EBITDA consists of net loss plus depreciation and amortization, interest expense (income) and income tax expense. Adjusted EBITDA consists of EBITDA plus stock-based compensation, changes in the fair value of contingent consideration liability, purchase accounting adjustment to deferred revenue, acquisition compensation costs and acquisition related costs. Non-GAAP total revenue is defined as GAAP total revenue before purchase accounting adjustments as a result of an acquisition. Amber Road has included these non-GAAP measures in this press release because it assists in comparing performance on a consistent basis across reporting periods, as it removes from operating results the impact of the Company’s capital structure. Amber Road believes these non-GAAP measures are useful to an investor in evaluating its operating performance because they are often used by the financial community to measure a company’s operating performance without regard to items such as depreciation and amortization, which can vary depending upon accounting methods and the book value of assets, and to present a meaningful measure of performance exclusive of its capital structure and the method by which assets were acquired.
Amber Road’s use of these non-GAAP measures has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of its results as reported under GAAP. Some of these limitations are:
- although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and these non-GAAP measures do not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;
- these non-GAAP measures do not reflect changes in, or cash requirements for, working capital needs;
- these non-GAAP measures do not reflect the potentially dilutive impact of equity-based compensation;
- these non-GAAP measures do not reflect interest or tax payments that may represent a reduction in cash available; and
- other companies, including companies in Amber Road’s industry, may calculate adjusted EBITDA differently, which reduces its usefulness as a comparative measure.
Because of these and other limitations, you should consider these non-GAAP measures together with other GAAP-based financial performance measures, including various cash flow metrics, net loss and other GAAP results. A reconciliation of GAAP operating and net loss to non-GAAP adjusted operating and net loss, and adjusted EBITDA, and GAAP total revenue to non-GAAP total revenue, has been provided in the financial statement tables included in this press release.
Cautionary Language Concerning Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts, but instead represent only our current expectations and beliefs, and therefore, contain risks and uncertainties about future events or our future financial performance, including, but not limited to, achieving revenue from bookings, closing business from the sales pipeline, new customer deployments and maintaining these relationships, the ability to reduce operating losses and use of cash, and attaining profitability. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “could,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” or “continue,” and similar expressions, whether in the negative or affirmative. These statements are only predictions and may be inaccurate. Actual events or results may differ materially. In evaluating these statements, you should specifically consider various factors, including the risks outlined in our filings with the Securities and Exchange Commission (SEC), including, without limitation, our annual, periodic and current SEC reports. These factors may cause our actual results to differ materially from any forward-looking statement. Although we believe that the expectations reflected in the forward-looking statements are reasonable, our future results, levels of activity, performance or achievements may differ from our expectations. Other than as required by law, we do not undertake to update any of the forward-looking statements after the date of this press release, even though our situation may change in the future.
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AMBER ROAD, INC. AND SUBSIDIARIES |
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Condensed Consolidated Balance Sheet |
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(Unaudited) |
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March 31, 2017 |
December 31, 2016 |
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| Assets | ||||||||
| Current assets: | ||||||||
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Cash and cash equivalents |
$ | 15,014,839 | $ | 15,408,133 | ||||
| Accounts receivable, net | 15,881,759 | 19,661,156 | ||||||
| Unbilled receivables | 716,029 | 314,328 | ||||||
| Deferred commissions | 4,346,749 | 4,420,632 | ||||||
| Prepaid expenses and other current assets | 2,126,843 | 1,719,612 | ||||||
| Total current assets | 38,086,219 | 41,523,861 | ||||||
| Property and equipment, net | 10,581,662 | 9,978,255 | ||||||
| Goodwill | 43,866,209 | 43,907,017 | ||||||
| Other intangibles, net | 5,807,405 | 6,148,820 | ||||||
| Deferred commissions | 7,519,549 | 8,046,664 | ||||||
| Deposits and other assets | 958,880 | 884,471 | ||||||
| Total assets | $ | 106,819,924 | $ | 110,489,088 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,827,168 | $ | 2,724,591 | ||||
| Accrued expenses | 13,246,144 | 14,127,304 | ||||||
| Current portion of capital lease obligations | 1,464,137 | 1,155,964 | ||||||
| Deferred revenue | 35,185,576 | 34,464,264 | ||||||
| Current portion of term loan, net of discount | 714,391 | 593,336 | ||||||
| Total current liabilities | 52,437,416 | 53,065,459 | ||||||
| Capital lease obligations, less current portion | 1,920,268 | 1,276,700 | ||||||
| Deferred revenue, less current portion | 2,267,857 | 2,135,620 | ||||||
| Term loan, net of discount, less current portion | 13,281,435 | 13,614,514 | ||||||
| Revolving credit facility | 6,000,000 | 6,000,000 | ||||||
| Other noncurrent liabilities | 1,733,908 | 1,825,317 | ||||||
| Total liabilities | 77,640,884 | 77,917,610 | ||||||
| Stockholders’ equity: | ||||||||
| Common stock, $0.001 par value; 100,000,000 shares authorized; issued and outstanding 27,056,052 and 26,926,268 shares at March 31, 2017 and December 31, 2016, respectively | 27,055 | 26,926 | ||||||
| Additional paid-in capital | 190,061,757 | 188,811,896 | ||||||
| Accumulated other comprehensive loss | (1,566,024 | ) | (1,336,792 | ) | ||||
| Accumulated deficit | (159,343,748 | ) | (154,930,552 | ) | ||||
| Total stockholders’ equity | 29,179,040 | 32,571,478 | ||||||
| Total liabilities and stockholders’ equity | $ | 106,819,924 | $ | 110,489,088 | ||||
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AMBER ROAD, INC. AND SUBSIDIARIES |
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Condensed Consolidated Statement of Operations |
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(Unaudited) |
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Three Months Ended March 31, |
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| 2017 | 2016 | |||||||
| Revenue: | ||||||||
| Subscription | $ | 13,901,308 | $ | 12,438,984 | ||||
| Professional services | 4,653,248 | 4,525,688 | ||||||
| Total revenue | 18,554,556 | 16,964,672 | ||||||
| Cost of revenue (1): | ||||||||
| Cost of subscription revenue | 5,380,028 | 5,049,875 | ||||||
| Cost of professional services revenue | 4,021,746 | 3,967,701 | ||||||
| Total cost of revenue | 9,401,774 | 9,017,576 | ||||||
| Gross profit | 9,152,782 | 7,947,096 | ||||||
| Operating expenses (1): | ||||||||
| Sales and marketing | 5,803,386 | 5,495,541 | ||||||
| Research and development | 3,535,415 | 3,887,996 | ||||||
| General and administrative | 3,806,707 | 3,998,636 | ||||||
| Total operating expenses | 13,145,508 | 13,382,173 | ||||||
| Loss from operations | (3,992,726 | ) | (5,435,077 | ) | ||||
| Interest income | 805 | 21,628 | ||||||
| Interest expense | (235,168 | ) | (200,380 | ) | ||||
| Loss before income taxes | (4,227,089 | ) | (5,613,829 | ) | ||||
| Income tax expense | 186,107 | 72,354 | ||||||
| Net loss | $ | (4,413,196 | ) | $ | (5,686,183 | ) | ||
| Net loss per common share: | ||||||||
| Basic and diluted | $ | (0.16 | ) | $ | (0.22 | ) | ||
| Weighted-average common shares outstanding: | ||||||||
| Basic and diluted | 27,238,887 | 26,440,343 | ||||||
| (1) Includes stock-based compensation as follows: | ||||||||
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Three Months Ended March 31, |
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| 2017 | 2016 | |||||||
| Cost of subscription revenue | $ | 203,272 | $ | 207,711 | ||||
| Cost of professional services revenue | 119,764 | 121,692 | ||||||
| Sales and marketing | 210,718 | 202,244 | ||||||
| Research and development | 283,638 | 266,015 | ||||||
| General and administrative | 408,243 | 550,859 | ||||||
| $ | 1,225,635 | $ | 1,348,521 | |||||
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AMBER ROAD, INC. AND SUBSIDIARIES |
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Condensed Consolidated Statement of Cash Flows |
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(Unaudited) |
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Three Months Ended March 31, |
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| 2017 | 2016 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (4,413,196 | ) | $ | (5,686,183 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 1,553,214 | 1,683,162 | ||||||
| Bad debt expense | 195,889 | 174,221 | ||||||
| Stock-based compensation | 1,225,635 | 1,348,521 | ||||||
| Acquisition related deferred compensation | — | 283,977 | ||||||
| Changes in fair value of contingent consideration liability | 18,525 | (20,000 | ) | |||||
| Accretion of debt discount | 11,177 | 15,729 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable and unbilled receivables | 3,187,957 | 3,608,775 | ||||||
| Prepaid expenses and other assets | 169,675 | (215,749 | ) | |||||
| Accounts payable | (978,355 | ) | 71,753 | |||||
| Accrued expenses | (938,082 | ) | 671,913 | |||||
| Other liabilities | (91,416 | ) | 220,323 | |||||
| Deferred revenue | 852,333 | 897,943 | ||||||
| Net cash provided by operating activities | 793,356 | 3,054,385 | ||||||
| Cash flows from investing activities: | ||||||||
| Capital expenditures | (11,014 | ) | (87,003 | ) | ||||
| Addition of capitalized software development costs | (473,797 | ) | (721,048 | ) | ||||
| Cash paid for deposits | (18,008 | ) | — | |||||
| Decrease in restricted cash | — | 113,094 | ||||||
| Net cash used in investing activities | (502,819 | ) | (694,957 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from revolving line of credit | 6,000,000 | 3,250,000 | ||||||
| Payments on revolving line of credit | (6,000,000 | ) | (5,000,000 | ) | ||||
| Payments on term loan | (187,500 | ) | (93,750 | ) | ||||
| Debt financing costs | (35,701 | ) | — | |||||
| Repayments on capital lease obligations | (367,365 | ) | (401,131 | ) | ||||
| Proceeds from the exercise of stock options | 24,355 | 135,756 | ||||||
| Net cash used in financing activities | (566,211 | ) | (2,109,125 | ) | ||||
| Effect of exchange rate on cash and cash equivalents | (117,620 | ) | (504,970 | ) | ||||
| Net decrease in cash and cash equivalents | (393,294 | ) | (254,667 | ) | ||||
| Cash and cash equivalents at beginning of period | 15,408,133 | 17,854,523 | ||||||
| Cash and cash equivalents at end of period | $ | 15,014,839 | $ | 17,599,856 | ||||
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Reconciliation of Net Loss to Adjusted EBITDA |
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(Unaudited) |
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Three Months Ended March 31, |
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| 2017 | 2016 | |||||||
| Net loss | $ | (4,413,196 | ) | $ | (5,686,183 | ) | ||
| Depreciation and amortization expense | 1,553,214 | 1,683,162 | ||||||
| Interest expense | 235,168 | 200,380 | ||||||
| Interest income | (805 | ) | (21,628 | ) | ||||
| Income tax expense | 186,107 | 72,354 | ||||||
| EBITDA | (2,439,512 | ) | (3,751,915 | ) | ||||
| Stock-based compensation | 1,225,635 | 1,348,521 | ||||||
| Change in fair value of contingent consideration liability | 18,525 | (20,000 | ) | |||||
| Purchase accounting deferred revenue adjustment | — | 69,095 | ||||||
| Acquisition compensation costs | — | 283,977 | ||||||
| Acquisition related costs | — | 5,420 | ||||||
| Adjusted EBITDA | $ | (1,195,352 | ) | $ | (2,064,902 | ) | ||
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Reconciliation of GAAP Total Revenue to Non-GAAP Total Revenue |
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(Unaudited) |
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Three Months Ended March 31, |
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| 2017 | 2016 | ||||||
| Total revenue | $ | 18,554,556 | $ | 16,964,672 | |||
| Purchase accounting deferred revenue adjustment | — | 69,095 | |||||
| Non-GAAP total revenue | $ | 18,554,556 | $ | 17,033,767 | |||
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Reconciliation of Net Loss to Non-GAAP Adjusted Net Loss |
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(Unaudited) |
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Three Months Ended March 31, |
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| 2017 | 2016 | |||||||
| Net loss | $ | (4,413,196 | ) | $ | (5,686,183 | ) | ||
| Stock-based compensation | 1,225,635 | 1,348,521 | ||||||
| Change in fair value of contingent consideration liability | 18,525 | (20,000 | ) | |||||
| Purchase accounting deferred revenue adjustment | — | 69,095 | ||||||
| Acquisition compensation costs | — | 283,977 | ||||||
| Acquisition related costs | — | 5,420 | ||||||
| Non-GAAP adjusted net loss | $ | (3,169,036 | ) | $ | (3,999,170 | ) | ||
| Adjusted non-GAAP net loss per common share: | ||||||||
| Basic and diluted | $ | (0.12 | ) | $ | (0.15 | ) | ||
| Weighted-average common shares outstanding: | ||||||||
| GAAP weighted average number of common shares outstanding - basic and diluted | 27,238,887 | 26,440,343 | ||||||
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Reconciliation of Loss from Operations to Non-GAAP Adjusted Loss from Operations |
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(Unaudited) |
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Three Months Ended March 31, |
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| 2017 | 2016 | |||||||
| Loss from operations | $ | (3,992,726 | ) | $ | (5,435,077 | ) | ||
| Stock-based compensation | 1,225,635 | 1,348,521 | ||||||
| Change in fair value of contingent consideration liability | 18,525 | (20,000 | ) | |||||
| Purchase accounting deferred revenue adjustment | — | 69,095 | ||||||
| Acquisition compensation costs | — | 283,977 | ||||||
| Acquisition related costs | — | 5,420 | ||||||
| Non-GAAP adjusted loss from operations | $ | (2,748,566 | ) | $ | (3,748,064 | ) | ||
Based on information available as of May 8, 2017, the following tables show 2017 GAAP guidance reconciled to non-GAAP guidance for the second quarter and full year 2017 as indicated below (numbers in millions, except per share data):
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Reconciliation of Loss from Operations to Non-GAAP Adjusted Loss from Operations Guidance |
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(Unaudited) |
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| Second Quarter 2017 | Full Year 2017 | ||||||||||||||||
| Low | High | Low | High | ||||||||||||||
| Loss from operations | $ | (5.3 | ) | $ | (4.7 | ) | $ | (15.5 | ) | $ | (12.5 | ) | |||||
| Stock-based compensation | 1.5 | 1.5 | 5.5 | 5.5 | |||||||||||||
| Non-GAAP adjusted loss from operations | $ | (3.8 | ) | $ | (3.2 | ) | $ | (10.0 | ) | $ | (7.0 | ) | |||||
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Reconciliation of Net Loss per Share to Non-GAAP Adjusted Net Loss per Share Guidance (1) |
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(Unaudited) |
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| Second Quarter 2017 | Full Year 2017 | ||||||||||||||||
| Low | High | Low | High | ||||||||||||||
| Net loss per share, basic and diluted | $ | (0.21 | ) | $ | (0.19 | ) | $ | (0.64 | ) | $ | (0.53 | ) | |||||
| Stock-based compensation | 0.05 | 0.05 | 0.20 | 0.20 | |||||||||||||
| Non-GAAP adjusted net loss per share, basic and diluted | $ | (0.16 | ) | $ | (0.14 | ) | $ | (0.44 | ) | $ | (0.33 | ) | |||||
| (1) This assumes weighted average shares outstanding - basic and diluted | 27.5 | 27.5 | 28.0 | 28.0 | |||||||||||||
CONTACT:
Investor Relations Contact
ICR
Staci Mortenson,
201-806-3663
InvestorRelations@AmberRoad.com
or
Amber
Road Contacts
Annika Helmrich (US & Canada), +1 201-806-3656
AnnikaHelmrich@AmberRoad.com
or
Martijn
van Gils (Europe & Asia), +31 858769534
MartijnvanGils@AmberRoad.com