-Achieves record quarterly revenue of $25.4
million, accelerating to 38% year-over-year
-Quarterly subscription revenue of $21.2
million, an increase of 40% year-over-year
Talend (NASDAQ: TLND), a global leader in cloud and big data
integration software, today released financial results for the
second quarter ended June 30, 2016.
“We achieved record revenue for the second quarter of 2016 of
$25.4 million, accelerating to 38% year-over-year growth from 34%
in the first quarter of 2016,” said Mike Tuchen, Talend CEO. “Our
strong results were driven by our cloud and big data solutions,
with combined revenues continuing to grow over 100% year-over-year.
Following our successfully completed IPO in July, we are pleased to
have recently been named as a leader in the Gartner Magic Quadrant
for Data Integration Tools. With our flexible product architecture,
we believe Talend is well positioned to capitalize on the growing
trend of Hadoop, Spark, and cloud adoption as organizations look to
leverage their data to optimize every aspect of their
business.”
Second Quarter 2016 Financial
Highlights
- Revenue: Total revenue was $25.4
million for the second quarter of 2016, an increase of 38% compared
to the second quarter of 2015. Subscription revenue was $21.2
million for the second quarter of 2016, an increase of 40% compared
to the second quarter of 2015, and accounted for 84% of total
revenue for the period. Professional services revenue was $4.2
million for the second quarter of 2016, an increase of 30% compared
to the second quarter of 2015, and accounted for 16% of total
revenue for the period.
- Operating Loss: IFRS operating
loss was $7.5 million for the second quarter of 2016, compared to
an operating loss of $4.0 million for the second quarter of 2015.
Non-IFRS operating loss was $6.8 million for the second quarter of
2016 compared to non-IFRS operating loss of $3.3 million for the
second quarter of 2015.
- Net Loss: IFRS net loss was $8.1
million for the second quarter of 2016, compared to IFRS net loss
of $4.3 million in the second quarter of 2015. Non-IFRS net loss
was $7.3 million for the second quarter of 2016, compared to
non-IFRS net loss of $3.6 million for the second quarter of 2015.
IFRS net loss per diluted share was $2.02 for the second quarter of
2016, compared with $1.15 per diluted share for the second quarter
of 2015. Non-IFRS net loss per diluted share was $1.84 for the
second quarter of 2016, compared with $0.97 per diluted share for
the second quarter of 2015.
- Free Cash Flow: Free cash flow
was ($2.1) million, compared to free cash flow of ($4.3) million
for the second quarter 2015, an improvement from (23%) to (8%) of
revenue for the period. For the first half of 2016 we were
approximately free cash flow breakeven.
A reconciliation of IFRS to non-IFRS financial measures has been
provided in the financial tables included in this press release
below. An explanation of these measures is also included below,
under the heading Non-IFRS Financial Measures.
Recent Business Highlights
- Completed initial public offering and
began trading on the NASDAQ on July 29, 2016. Net
proceeds from the IPO were approximately $91.6 million, after
underwriting discounts and other offering costs.
- Elevated from Visionary to Leader in
the 2016 Gartner Magic Quadrant for Data Integration Tools based on
completeness of vision and ability to execute.
- Achieved status as an Advanced
Technology Partner in the Amazon Web Services (AWS) Partner Network
(APN). The elevated Partner status recognizes Talend’s customer
successes and certification by AWS in the areas of Big Data, Data
Warehousing, and Cloud Analytics.
- Introduced the commercial version of
Talend Data Preparation, a governed self-service solution for
accelerating data usage and collaboration.
Financial OutlookTalend’s outlook
assumes similar business conditions and foreign exchange rates as
of July 31, 2016.
Third quarter of 2016:
- Total revenue is expected to be in the
range of $26.0 million to $27.0 million.
- IFRS operating loss is expected to be
in the range of $8.0 million to $7.0 million.
- IFRS net loss is expected to be in the
range of $8.7 million to $7.7 million and non-IFRS net loss is
expected to be in the range of $7.5 million to $6.5 million.
- IFRS net loss per diluted share is
expected to be in the range of $0.31 to $0.28 and non-IFRS net loss
per diluted share is expected to be in the range of $0.27 to
$0.24.
- Fully diluted weighted average share
count of 27.5 million shares.
Full year 2016:
- Total revenue is expected to be in the
range of $103.0 million to $105.0 million.
- IFRS operating loss is expected to be
in the range of $29.0 million to $27.0 million.
- IFRS net loss is expected to be in the
range of $29.7 million to $27.7 million and non-IFRS net loss is
expected to be in the range of $26.1 million to $24.1 million.
- IFRS net loss per diluted share is
expected to be in the range of $1.15 to $1.07 and non-IFRS net loss
per diluted share is expected to be in the range of $1.01 to
$0.93.
- Fully diluted weighted average share
count of 25.9 million shares.
These statements are forward-looking and actual results may
differ materially. Refer to the Forward-Looking Statements below
for information on the factors that could cause our actual results
to differ materially. With respect to Talend's expectations
regarding financial outlook, a reconciliation of IFRS to non-IFRS
net loss has been provided in the financial statement tables
included in this press release below. An explanation of these
measures is also included below under the heading Non-IFRS
Financial Measures.
Conference Call InformationTalend
will host a conference call and live webcast for analysts and
investors at 5:00 p.m. Eastern time on August 25, 2016.
Parties in the United States and Canada can
access the call by dialing +1 (888)-280-4443, using conference code
4680836. International parties can access the call by dialing +1
(719)-325-2289, using conference code 4680836.
The webcast will be accessible on Talend's investor relations
website at http://investor.talend.com for a period of one year. A
telephonic replay of the conference call will be available through
Thursday, September 1, 2016. To access the replay, parties
in the United States and Canada should call +1
(888)-203-1112 and enter conference code
4680836. International parties should call +1 (719)-457-0820
and enter conference code 4680836.
Non-IFRS Financial MeasuresIn addition to disclosing
financial measures prepared in accordance with International
Financial Reporting Standards (‘‘IFRS’’) as issued by the
International Accounting Standard Board (‘‘IASB’’), this press
release and the accompanying tables contain certain non-IFRS
financial measures, including non-IFRS net loss and free cash flow.
We define non-IFRS net loss as IFRS net loss less share-based
compensation and amortization of acquired intangibles. We define
free cash flow as net cash from (used in) operating activities less
net cash used in investing activities for purchases of property and
equipment and intangible assets. Non-IFRS financial measures do not
have any standardized meaning and are therefore unlikely to be
comparable to similarly titled measures presented by other
companies. Talend considers these non-IFRS financial measures to be
important because they provide useful measures of its operating
performance, exclusive of unusual events or factors that do not
directly affect what Talend considers to be its core operating
performance, and are used by Talend’s management for that purpose.
In addition, investors often use similar measures to evaluate the
operating performance of a company. Non-IFRS financial measures are
presented for supplemental informational purposes only for
understanding the company’s operating results. The non-IFRS
financial measures should not be considered a substitute for
financial information presented in accordance with IFRS, and may be
different from non-IFRS financial measures presented by other
companies. Please see the reconciliation of non-IFRS financial
measures to the most directly comparable IFRS measure attached to
this release below.
Forward-Looking StatementsThis press release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Forward-looking statements generally relate to future
events or our future financial or operating performance. In some
cases, you can identify forward-looking statements because they
contain words such as “may,” “will,” “should,” “expects,” “plans,”
“anticipates,” “could,” “intends,” “target,” “projects,”
“contemplates,” “believes,” “estimates,” “predicts,” “potential” or
“continue” or the negative of these words or other similar terms or
expressions that concern our expectations, strategy, plans or
intentions. Forward-looking statements in this press release
include, but are not limited to, our anticipated operating results
for the third quarter and 2016 fiscal year, our expectations
regarding the evolution of our marketplace and the goals for our
Talend Data Fabric and our belief that we are well positioned to
capitalize on the growing trend of Hadoop, Spark, and cloud
adoption. Our expectations and beliefs regarding these matters may
not materialize, and actual results in future periods are subject
to inherent risks, uncertainties and changes in circumstance that
are difficult or impossible to predict. Consequently, you should
not rely on these forward-looking statements. Actual outcomes and
results may differ materially from those contemplated by these
forward-looking statements as a result of such uncertainties,
risks, and changes in circumstances, including without limitation
risks and uncertainties related to our ability to continue to
deliver and improve our products and successfully develop new
products; customer acceptance and purchase of our existing products
and new products; our ability to retain existing customers and
generate new customers; the market for data integration solutions,
particularly our big data and cloud integration solutions, not
continuing to develop; competition from other products and
services; and general market, political, economic and business
conditions.
The foregoing list of factors is not exclusive. Additional risks
and uncertainties that could affect our financial and operating
results are included under the captions “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operation” and elsewhere in our 424(b) prospectus dated
July 28, 2016 filed with the SEC. Our SEC filings are available on
the Investors section of Talend’s website
at http://investor.talend.com and on the SEC’s website at
www.sec.gov. The forward-looking statements in this press
release are based on information available to us as of
the date hereof, and we disclaim any obligation to update any
forward-looking statements provided to reflect any change in our
expectations or any change in events, conditions, or circumstances
on which any such statement is based, except as required by
law.
About TalendTalend is a next generation leader in cloud
and big data integration solutions that helps companies become data
driven by making data more accessible, improving its quality and
quickly moving data where it’s needed for real-time decision
making. By simplifying big data through these steps, Talend enables
companies to act with insight based on accurate, real-time
information about their business, customers, and industry. Talend’s
innovative open-source solutions quickly and efficiently collect,
prepare and combine data from a wide variety of sources allowing
companies to optimize it for virtually any aspect of their
business. Talend (NASDAQ: TLND) is headquartered in Redwood City,
CA. For more information, please visit www.talend.com and follow us
on Twitter: @Talend.
TALEND, INC. UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (in thousands, except per share
amounts) Three
Months Ended June 30, Six Months Ended June 30,
2015 2016 2015 2016
Revenue Subscriptions $ 15,163 $ 21,222
$
28,923
40,519 Professional services 3,201 4,159 6,482
7,618 Total revenue 18,364 25,381 35,405 48,137
Cost of revenue Subscriptions 1,977 3,065 3,981 5,559
Professional services 2,531 3,333 5,335
6,128 Total cost of revenue 4,508 6,398 9,316 11,687 Gross
profit 13,856 18,983 26,089 36,450
Operating expenses Sales
and marketing 10,842 16,946 22,329 31,822 Research and development
3,839 4,889 7,364 9,166 General and administrative 3,165
4,681 6,499 8,940 Total operating
expenses 17,846 26,516 36,192 49,928
Loss from operations (3,990 ) (7,533 ) (10,103 ) (13,478 )
Finance income 6 - 236 859 Finance expense (311 ) (468 ) (319 )
(625 ) Loss before income tax expense (4,295 ) (8,001 )
(10,186 ) (13,244 ) Income tax (expense) benefit 2 (58 ) 4
(83 )
Net loss for the period $
(4,293
) $
(8,059 )
$
(10,182
)
$
(13,327
) Net loss per share attributable to ordinary
shareholders: Basic and diluted net loss per share $ (1.15 ) $
(2.02 )
$
(2.60
)
$ (3.34 ) Weighted-average shares outstanding used to compute net
loss per share attributable to ordinary shareholders: Shares used
in basic and diluted net loss per share calculations 3,741 3,990
3,923 3,985
SHARE-BASED COMPENSATION
EXPENSE
Total share-based compensation expense
included in the Consolidated Statements of Operations is as
follows:
Three Months Ended June 30, Six Months Ended June
30, 2015 2016 2015 2016
(unaudited) Cost of revenue - subscriptions $ 22 $ 17
$
38
$ 34 Cost of revenue - professional services 17 17 29 32 Sales and
marketing 195 210 343 389 Research and development 47 94 84 207
General and administrative 250 312 450
619 Total share-based compensation expense $ 531 $
650
$
944
$ 1,281
TALEND,
INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts) December
31, 2015 June 30, 2016 Assets Current
assets: Cash and cash equivalents $ 6,930 $ 8,445 Trade
receivables, net 26,862 28,300 Other current assets 4,976
7,723 Total current assets 38,768 44,468
Non-current assets: Property and equipment, net 2,397 2,739
Goodwill 3,005 3,054 Intangible assets, net 834 691 Other
non-current assets 3,057 3,044 Total
non-current assets 9,293 9,528
Total
assets $
48,061 $
53,996
Liabilities Current liabilities: Trade and other payables $
15,331 $ 18,041 Provisions 536 526 Deferred revenue 49,679 61,894
Borrowings 151 12,198 Total current
liabilities 65,697 92,659 Non-current liabilities: Provisions 272
319 Deferred revenue 24,584 25,256 Borrowings 9,991
15 Total non-current liabilities 34,847
25,590 Total liabilities 100,544
118,249
Equity Share capital 2,450 2,457 Share
premium 94,931 95,212 Foreign currency translation reserve 2,014
2,002 Share-based payments reserve 4,580 5,861 Other reserves 8,371
8,371 Accumulated losses (164,829 ) (178,156 ) Total
shareholders’ equity (deficit) (52,483 ) (64,253 )
Total liabilities and shareholders' equity (deficit) $
48,061 $
53,996
TALEND, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS (in thousands)
Six Months Ended June 30, 2015 2016
Cash flows from operating activities: Net loss for
the period $ (10,182 ) $ (13,327 ) Adjustments to reconcile net
loss to net cash from operating activities: Depreciation 468 565
Amortization of intangible assets 251 159 Unrealized gain foreign
exchange (83 ) (650 ) Non-cash finance costs 13 44 Share-based
compensation 944 1,281 Income tax for the period (4 ) (83 ) Changes
in operating assets and liabilities: Trade receivables 1,993 (1,545
) Other assets 666 (482 ) Trade and other payables 866 1,469
Provisions (139 ) (87 ) Deferred income 1,534
13,250 Net cash (used in) from operating activities
(3,674 ) 594
Cash flows from investing
activities: Acquisition of property and equipment (288 )
(922 ) Net cash used in investing activities (288 )
(922 )
Cash flows from financing activities: Proceeds
from issuance of ordinary and preferred shares 139 288 Deferred
share issuance costs — (854 ) Proceeds from borrowings 1,930 2,000
Repayment of borrowings (816 ) (47 ) Net cash from
financing activities 1,253 1,387
Net
increase (decrease) in cash and cash equivalents (2,709
) 1,059 Cash and cash equivalents at beginning of the
period 9,191 6,930 Effect of exchange rate changes on cash and cash
equivalents 181 456
Cash and cash
equivalents at end of period $ 6,663
$ 8,445 TALEND, INC.
IFRS to Non-IFRS Reconciliations (In thousands) (unaudited)
The following tables detail the
reconciliation of IFRS financial measures to non-IFRS financial
measures included in this release:
Operating loss:
Three Months Ended June 30, 2015 2016
IFRS operating loss $ (3,990 ) $ (7,533 )
Share-based compensation expense
531 650 Amortization of acquired intangibles 124
80 Non-IFRS operating loss $ (3,335 ) $ (6,803 )
Net loss: Three Months Ended June 30,
2015 2016 IFRS net loss $ (4,293 ) $ (8,059 )
Share-based compensation expense
531 650 Amortization of acquired intangibles 124
80 Non-IFRS net loss $ (3,638 ) $ (7,329 )
Weighted-average shares outstanding used in computing Non-IFRS per
share amounts 3,741 3,990
Net loss per share: IFRS
net loss per share - diluted $ (1.15 ) $ (2.02 ) Plus: Share-based
compensation expense 0.15 0.16 Plus: Amortization of acquired
intangibles 0.03 0.02 Non-IFRS net loss
per share - diluted $ (0.97 ) $ (1.84 )
Gross profit:
Three Months Ended June 30, 2015 2016
IFRS gross profit $ 13,856 $ 18,983
Share-based compensation expense
40 34 Amortization of acquired intangibles - -
Non-IFRS gross profit $ 13,896 $ 19,017
IFRS gross margin 75 % 75 % Non-IFRS gross margin 76 % 75 %
Cost of revenue: Three Months Ended June 30,
2015 2016 IFRS Cost of revenue $ (4,508 ) $
(6,398 )
Share-based compensation expense
40 34 Amortization of acquired intangibles - -
Non-IFRS cost of revenue $ (4,468 ) $ (6,364 )
Operating expenses: Three Months Ended June 30,
2015 2016 Operating expenses $ (17,846 ) $
(26,516 )
Share-based compensation expense
491 616 Amortization of acquired intangibles 124
80 Non-IFRS operating expenses $ (17,231 ) $ (25,820
)
Sales and marketing: Three Months Ended June
30, 2015 2016 Sales and marketing $
(10,842 ) $ (16,946 )
Share-based compensation expense
195 210 Amortization of acquired intangibles -
- Non-IFRS sales and marketing $ (10,647 ) $ (16,736 )
Research and development: Three Months Ended June
30, 2015 2016 Research and development $
(3,839 ) $ (4,889 )
Share-based compensation expense
47 94 Amortization of acquired intangibles 76
33 Non-IFRS research and development $ (3,716 ) $ (4,762 )
General and administrative: Three Months Ended
June 30, 2015 2016 General and
administrative $ (3,165 ) $ (4,681 )
Share-based compensation expense
250 312 Amortization of acquired intangibles 48
47 Non-IFRS general and administrative $ (2,867 ) $
(4,322 )
TALEND, INC. Free Cash Flow
(In thousands) (unaudited) The
following table details our free cash flow for the three months
ended June 30, 2015 and 2016, as well as for the six months ended
June 30, 2015 and 2016, and a reconciliation to the most directly
comparable IFRS measure for such period:
Free cash
flow: Three Months Ended June 30, Six Months Ended
June 30, 2015 2016 2015 2016
Net cash (used in) from operating activities (4,073 ) (1,618 )
(3,674 ) 594 Less: Acquisition of property and equipment 189
445 288 922 Free
cash flow $ (4,262 ) $ (2,063 ) $ (3,962 ) $ (328 )
TALEND, INC. IFRS to Non-IFRS Reconciliations for Net
Loss and EPS Guidance (In millions) (unaudited)
The following tables detail the
reconciliation of IFRS financial measures to non-IFRS financial
measures included in this release:
Guidance for the third
quarter and full year 2016:
Three Months Ended
Year Ended December 31, 2016 Low High
Low High IFRS net loss $ (8.7 ) $ (7.7 ) $
(29.7 ) $ (27.7 )
Share-based compensation expense
1.1 1.1 3.3 3.3 Amortization of acquired intangibles 0.1
0.1 0.3 0.3
Non-IFRS net loss $ (7.5 ) $ (6.5 ) $ (26.1 ) $ (24.1 )
Weighted-average shares outstanding used in computing IFRS and
Non-IFRS per share amounts 27.5 27.5 25.9 25.9
Net loss
per share: IFRS net loss per share - diluted $ (0.31 ) $ (0.28
) $ (1.15 ) $ (1.07 ) Plus: Share-based compensation expense 0.04
0.04 0.14 0.13 Plus: Amortization of acquired intangibles
0.0 0.0 0.0 0.0
Non-IFRS net loss per share - diluted $ (0.27 ) $ (0.24 ) $ (1.01 )
$ (0.93 )
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Investor Contact:The Blueshirt Group for TalendCynthia
Hiponia or Erin Rheaume, 650-268-5018ir@talend.comorMedia
Contact:TalendChris Taylor, 650-268-5024Vice President,
Corporate CommunicationsCtaylor@Talend.com
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