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| 8-K - CURRENT REPORT - Support.com, Inc. | sprt_8k.htm |
Exhibit 99.1
Support.com Reports Fourth Quarter and 2020 Financial
Results
Los Angeles, CA – March 30, 2020 –
Support.com, Inc. (NASDAQ: SPRT), a leader in customer and technical
support solutions delivered by home-based employees, today
reported unaudited financial results for its fourth quarter and
year ended December 31, 2020.
Financial Summary
For the
fourth quarter of 2020, total revenue was $10.5 million, a
decrease of $2.8 million or 21 percent compared to revenues of
$13.3 million in the fourth quarter of 2019 and up $0.2 million or
2 percent compared to revenues of $10.3 million in the
third quarter of 2020. Revenues for the full year 2020 were $43.9
million, a decrease of 31% compared to revenues of $63.3 million in
full year 2019.
We
recorded breakeven net income in the fourth quarter of 2020,
compared to net income of $0.2 million, or $0.01 per share, in
the fourth quarter of 2019 and net loss of $0.6 million, or
($0.03) per share, in the third quarter of 2020. For the full year
2020, we recorded net income of $0.4 million, or $0.02 per share,
compared to $3.8 million, or $0.20 per share in full year
2019
Key
changes in our net income (loss) included the
following:
●
Gross profit was
$3.8 million in the fourth quarter of 2020, compared to $3.6
million in the fourth quarter of 2019 and $3.1 million in the third
quarter of 2020. For the full year 2020, gross profit was $14.9
million, compared to $16.5 million in full year 2019.
●
Gross profit margin
of 36% increased compared to 27% in the fourth quarter of 2019 and
30% in the third quarter of 2020. For the full year 2020, gross
profit margin of 34% increased compared to 26% in full year
2019.
●
Operating expenses
were $3.9 million in the fourth quarter of 2020, compared to $3.7
million in the fourth quarter of 2019 and $3.7 million in the third
quarter of 2020. Operating expenses were $14.9 million for full
year 2020, compared to $13.5 million in 2019.
●
In the fourth
quarter of 2020, the company incurred $0.3 million in a one-time,
non-cash write-off of intangible assets.
Balance Sheet Information
At
December 31, 2020, cash, cash equivalents and short-term
investments were $30.0 million, compared with $26.4 million at
December 31, 2019 and $29.7 million at September 30,
2020.
Total
assets as of December 31, 2020 were $39.3 million and
total stockholders’ equity was
$34.4 million.
Support.com
will not host a conference call discussing the Company’s
fourth quarter results. For more information, please visit the
Investor Relations section of the Support.com website at
Support.com/about-us/investor-relations/.
About Support.com
Support.com, Inc. (NASDAQ:
SPRT) is a leading provider of customer and technical support
solutions delivered by home-based employees. For more than twenty
years, the company has achieved stellar results for global
enterprise clients and top-tier businesses. Support.com's proven,
omnichannel solutions have been specifically designed and optimized
for the homesourcing™ environment, resulting in
industry-leading NPS scores and first call resolution rates. The
company efficiently meets changing client needs through its highly
scalable, global network of home-based employees and secure,
proprietary, cloud-based platforms. For more information, please
visit www.support.com.
Support.com, Inc. is an
Equal Opportunity Employer. For more information,
visit http://www.support.com/about-us/careers.
© 2021 Support.com, Inc. All rights reserved. Support.com and
the Support.com logo are trademarks or registered trademarks of
Support.com, Inc. in the United States and other countries. All
other marks are the property of their respective
owners.
Safe Harbor Statement
This
announcement may contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include, but are not limited to, all
statements relating to expected financial performance (including
without limitation statements involving growth and projections of
revenue, margin, profitability, income (loss) from continuing
operations, income (loss) per share from continuing operations,
cash usage or generation, cash balance as of any future date,
capital structure and other financial items); the plans and
objectives of management for future operations, customer
relationships, products, services or investments; personnel
matters; and future performance in economic and other terms. Such
forward-looking statements are based on current expectations and
information that involve a number of uncertainties and risks that
may cause actual events or results to differ materially from those
indicated by such forward-looking statements, including, among
others, our ability to retain and grow major programs, our ability
to expand and diversify our customer base, our ability to maintain
and grow revenue, any acquisitions we may make, including
integrating acquired companies with our existing businesses and our
ability to achieve the benefits, growth prospects and synergies
expected by such acquisitions, our ability to successfully
develop new products and services, our ability to manage our
workforce, our ability to operate in markets that are subject to
extensive regulations, such as support for home security systems,
our ability to control expenses and achieve desired margins,
our ability to maintain or improve gross margin, our
dependence on a small number of customers and partners, our ability
to attract, train and retain talented employees, potential
intellectual property, class action or other litigation,
fluctuations in government laws and regulations, our ability to
utilize and realize the value of our net operating loss
carryforwards and how they could be substantially limited or
permanently impaired, given our current market capitalization and
cash position, our ability to execute the cost reduction program
involving the planned actions on the expected schedule, our ability
to achieve the cost savings expected in connection with the cost
reduction plan, the ultimate effect of any such cost reductions on
our financial results, any expenses or reputational damage
associated with resolving customer warranty and/or indemnification
claims; and our ability to manage the effects of the cost reduction
plan on our workforce and other operations. Many of the foregoing
risks and uncertainties are, and will be, exacerbated by the
COVID-19 pandemic and any worsening of the global business and
economic environment as a result. More information on these risks
and other potential factors that could affect the Company’s
business and financial results is included in the Company’s
filings with the SEC, including in the “Risk Factors”
and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” sections of the
Company’s most recently filed periodic reports on Form 10-K
and Form 10-Q and subsequent filings. The Company assumes no
obligation to update any forward-looking statements or information,
which speak as of their respective dates.
Investor Contact
Jacob
Moelter
IR@support.com
SUPPORT.COM,
INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(in
thousands)
(unaudited)
|
|
December
31,
|
December
31,
|
|
|
2020
(1)
|
2019
(2)
|
|
|
|
|
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash, cash
equivalents and short-term investments
|
$29,967
|
$26,414
|
|
Accounts
receivable, net
|
6,975
|
9,398
|
|
Prepaid expenses
and other current assets
|
670
|
728
|
|
Total
current assets
|
37,612
|
36,540
|
|
Property and
equipment, net
|
1,115
|
533
|
|
Intangible assets,
net
|
-
|
250
|
|
Other
assets
|
539
|
717
|
|
|
|
|
|
Total
assets
|
$39,266
|
$38,040
|
|
|
|
|
|
Liabilities
and Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable
and accrued compensation
|
$2,101
|
$1,887
|
|
Other accrued
liabilities
|
937
|
1,001
|
|
Short-term deferred
revenue
|
881
|
1,193
|
|
Total
current liabilities
|
3,919
|
4,081
|
|
Other long-term
liabilities
|
911
|
792
|
|
Total
liabilities
|
4,830
|
4,873
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common
stock
|
2
|
2
|
|
Additional
paid-in-capital
|
250,954
|
250,092
|
|
Treasury
stock
|
(5,297)
|
(5,297)
|
|
Accumulated other
comprehensive loss
|
(2,419)
|
(2,380)
|
|
Accumulated
deficit
|
(208,804)
|
(209,250)
|
|
Total
stockholders' equity
|
34,436
|
33,167
|
|
|
|
|
|
Total
liabilities and stockholders' equity
|
$39,266
|
$38,040
|
|
|
|
|
|
|
|
|
|
|
Note 1: Amounts are subject to
completion of management’s customary closing and review
procedures.
|
|||
|
|
|
Note 2: Derived from audited
consolidated financial statements for the year ended December 31,
2019.
|
|||
|
|
|
|
|
|
|
SUPPORT.COM,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in
thousands, except per share amounts)
(unaudited)
|
|
Three
Months Ended
|
Years
Ended
|
|||
|
|
December 31,
2020 (1)
|
September
30, 2020
|
December
31, 2019
|
December
31, 2020
|
December
31, 2019
|
|
Revenue:
|
|
|
|
|
|
|
Services
|
$10,089
|
$9,873
|
$12,847
|
$42,079
|
$59,545
|
|
Software and
other
|
454
|
465
|
478
|
1,785
|
3,788
|
|
Total
revenue
|
10,543
|
10,338
|
13,325
|
43,864
|
63,333
|
|
|
|
|
|
|
|
|
Cost
of revenue:
|
|
|
|
|
|
|
Cost of
services
|
6,694
|
7,182
|
9,649
|
28,697
|
46,714
|
|
Cost of software
and other
|
75
|
84
|
32
|
224
|
151
|
|
Total
cost of revenue
|
6,769
|
7,266
|
9,681
|
28,921
|
46,865
|
|
Gross
profit
|
3,774
|
3,072
|
3,644
|
14,943
|
16,468
|
|
Operating
expenses:
|
|
|
|
|
|
|
Engineering and
IT
|
794
|
853
|
1,282
|
3,655
|
4,078
|
|
Sales and
marketing
|
488
|
544
|
445
|
2,362
|
1,760
|
|
General and
administrative
|
2,586
|
2,331
|
2,008
|
8,874
|
7,679
|
|
Total
operating expenses
|
3,868
|
3,728
|
3,735
|
14,891
|
13,517
|
|
|
|
|
|
|
|
|
Income
(loss) from operations
|
(94)
|
(656)
|
(91)
|
52
|
2,951
|
|
|
|
|
|
|
|
|
Interest income and
other, net
|
150
|
89
|
232
|
496
|
1,049
|
|
|
|
|
|
|
|
|
Income
(loss) before income taxes
|
56
|
(567)
|
141
|
548
|
4,000
|
|
|
|
|
|
|
|
|
Income
tax provision (benefit)
|
37
|
(13)
|
(16)
|
102
|
154
|
|
|
|
|
|
|
|
|
Net
income (loss)
|
$19
|
$(554)
|
$157
|
$446
|
$3,846
|
|
|
|
|
|
|
|
|
Net
earnings (loss) per share
|
|
|
|
|
|
|
Basic
|
$0.00
|
$(0.03)
|
$0.01
|
$0.02
|
$0.20
|
|
Diluted
|
$0.00
|
$(0.03)
|
$0.01
|
$0.02
|
$0.20
|
|
|
|
|
|
|
|
|
Shares
used in computing per share amounts
|
|
|
|
|
|
|
Basic
|
19,391
|
19,242
|
19,048
|
19,192
|
18,977
|
|
Diluted
|
19,732
|
19,242
|
19,093
|
19,369
|
19,026
|