Qumu Corporation (Nasdaq:
QUMU), a leading provider of cloud-based enterprise video
technology for organizations of all sizes, today reported
preliminary financial results for the fourth quarter and its full
year ended December 31, 2020. The preliminary financial results for
2020 are subject to the Company’s management’s and its independent
auditors’ customary audit procedures.
Fourth quarter 2020 revenue is expected to be approximately $6.9
million and full year 2020 revenue is expected to be approximately
$29.1 million, representing an approximately 14.6% increase over
2019 revenue of $25.4 million and achievement of the Company’s
revenue guidance of $29.0 million. For the fourth quarter 2020,
subscription, maintenance and support revenue is estimated to have
increased by approximately 23.1% to approximately $5.4 million from
$4.4 million in the fourth quarter 2019. For the full year 2020,
subscription, maintenance and support revenue is estimated to have
increased by approximately 7.2% to approximately $19.6 million from
$18.2 million for the full year 2019.
“In the fourth quarter, we gained momentum in the initial
implementation phase of our long-term strategic roadmap and the
financial results reflect traction in our efforts to grow
high-margin recurring revenues,” said Qumu President and CEO TJ
Kennedy. “Our outlook for 2021 demonstrates our confidence that
investments in our long-term strategic roadmap will accelerate the
evolution of Qumu’s SaaS-based business model and allow Qumu to
capture the opportunities presented by the ongoing transformation
in the way organizations drive communication.”
SaaS customer dollar value retention is expected to be
approximately 92.6% at the end of fourth quarter 2020 as compared
to 92.0% at the end of fourth quarter 2019.
The Company’s preliminary gross margin percentage for the fourth
quarter 2020 is expected to be approximately 75.7% as compared to
68.8% for the fourth quarter 2019, with the improvement in the
quarter due to a favorable sales mix and an increase in
higher-margin SaaS revenue. Full year 2020 gross margin is expected
to be approximately 71.3%, which is lower than 2019 gross margin of
72.2% due to a higher mix of appliance revenue primarily in the
second quarter 2020, which generally carries lower margins compared
to license revenue.
Net loss for the fourth quarter 2020 is expected to be between
$(4.3) million and $(4.1) million. Net loss for full year 2020 is
expected to be between $(9.5) million and $(9.3) million. This
compares to net loss in the fourth quarter 2019 and full year 2019
of $(1.7) million and $(6.4) million, respectively. Adjusted
EBITDA, a non-GAAP measure, for the fourth quarter 2020 is expected
to be between $(1.2) million and $(1.0) million. Adjusted EBITDA
for 2020 is expected to be between $(2.5) million and $(2.3)
million. This compares to adjusted EBITDA in the fourth quarter
2019 and full year 2019 of $(1.2) million and $(2.9) million,
respectively.
Net loss for 2020 was favorably impacted by higher gross profit
driven by higher revenue in 2020 and lower interest expense given
the Company’s repayment of its term loan in the fourth quarter
2019. These favorable impacts were offset in 2020 by lower gross
margins, approximately $664,000 in severance charges, approximately
$917,000 in non-cash charges resulting from the adoption of the
Company’s remote work policy in the fourth quarter 2020, additional
expense associated with the initial implementation of initiatives
within the Company’s long-term strategic roadmap, higher
commissions and annual company bonus accruals, approximately $1.8
million in unfavorable impact from changes in the warrant liability
fair value, and approximately $1.6 million in transaction expense
associated with the Company’s now terminated merger with Synacor,
Inc.
Cash and cash equivalents totaled approximately $11.9 million as
of December 31, 2020, as compared to $10.6 million as of December
31, 2019. The increase in cash and cash equivalents was principally
due to positive operating cash flow.
Qumu expects to issue a press release with its full financial
results for the fourth quarter and full year 2020 after market on
Thursday, March 4, 2021.
2021 Outlook
Qumu provides revenue guidance based on current market
conditions and expectations, including the unknown financial impact
that COVID-19, and related recovery, will have on economies and
enterprises around the world. Based on the Company’s fourth quarter
2020 financial results, pipeline of business and progress toward
implementation of the Company’s strategic roadmap, Qumu management
expects at least 20% revenue growth in 2021 as compared to 2020. As
Qumu continues to expand its SaaS salesforce, the Company’s
operating expenses will increase in the first half of 2021 as
compared to the first half of 2020 and the Company expects its
revenue growth rate to accelerate in the second half of 2021 as
compared to the first half of 2021.
Non-GAAP Information
To supplement the Company's condensed consolidated financial
statements presented on a GAAP basis, the Company uses adjusted
EBITDA, a non-GAAP measure, which excludes certain items from net
loss, a GAAP measure. Adjusted EBITDA excludes items related to
interest income and expense, the impact of income-based taxes,
depreciation and amortization, stock-based compensation, change in
fair value of warrant liabilities, foreign currency gains and
losses, other non-operating income and expenses, restructuring
expenses and transaction-related expenses.
The Company uses both GAAP and non-GAAP measures when planning,
monitoring, and evaluating the Company’s performance. The Company
believes that adjusted EBITDA is useful to investors because it
provides supplemental information that allows investors to review
the Company's results of operations from the same perspective as
management and the Company's board of directors. Non-GAAP results
are presented for supplemental informational purposes only for
understanding our operating results. The non-GAAP results should
not be considered a substitute for financial information presented
in accordance with generally accepted accounting principles and may
be different from non-GAAP measures used by other companies.
See the attached Supplemental Financial Information for a
reconciliation of preliminary net loss, a GAAP measure, to
preliminary adjusted EBITDA, a non-GAAP measure, for the fourth
quarter and full year ended December 31, 2020 and 2019.
About Qumu
Qumu (Nasdaq: QUMU) is a leading provider of best-in-class tools
to create, manage, secure, distribute and measure the success of
live and on-demand video for the enterprise. Backed by the most
trusted and experienced team in the industry, the Qumu Cloud
platform enables global organizations to drive employee engagement,
increase access to video, and modernize the workplace by providing
a more efficient and effective way to share knowledge.
Forward-Looking Statements
This press release contains forward-looking statements that are
made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Any statements contained
in this press release that are not statements of historical fact
may be deemed to be forward-looking statements. Without limiting
the foregoing, words such as “may,” “will,” “expect,” “believe,”
“anticipate,” or “estimate” or comparable terminology are intended
to identify forward-looking statements. Forward-looking statements
are subject to various risks and uncertainties that could cause
actual results to differ materially from those expressed or implied
in such statements.
Such forward-looking statements include, for example, statements
about: the expected use and adoption of video in the enterprise,
the Company’s future revenue and operating performance, future
product mix, the demand for the Company’s products or software, or
the success of initiatives in the Company’s strategic roadmap. The
risks and uncertainties that could cause actual results to differ
materially from those expressed or implied in these forward-looking
statements include the risk factors described in the Company’s
Quarterly Report on Form 10-Q for the quarter ended June 30, 2020,
any subsequently filed Form 10-Q and Current Reports on Form 8-K
and other filings with the Securities and Exchange Commission.
The forward-looking statements in this press release speak only
as of the date of this press release. Except as required by law,
Qumu assumes no obligation to update or revise these
forward-looking statements for any reason, even if new information
becomes available in the future, except as required by law.
QUMU CORPORATION
Supplemental Financial Information
A reconciliation from net loss, a GAAP measure, to adjusted
EBITDA, a non-GAAP measure, is as follows:
Three Months Ended December
31, 2020 (unaudited) (estimated)
Three Months Ended December
31, 2019 (unaudited)
Year Ended December 31, 2020
(unaudited) (estimated)
Year Ended December 31,
2019
(unaudited)
Low End of Range
High End of Range
Actual
Low End of Range
High End of Range
Actual
Net loss
$
(4,313
)
$
(4,053
)
$
(1,671
)
$
(9,535
)
$
(9,275
)
$
(6,443
)
Interest expense, net
44
29
100
82
67
754
Income tax benefit
(35
)
(50
)
(61
)
(182
)
(197
)
(194
)
Depreciation and amortization expense
307
297
356
1,242
1,232
1,526
EBITDA
(3,997
)
(3,777
)
(1,276
)
(8,393
)
(8,173
)
(4,357
)
Gain on sale of BriefCam, Ltd.
-
-
-
-
-
(41
)
Increase (decrease) in fair value of
derivative liability
-
-
-
(104
)
(104
)
-
Loss on extinguishment of debt
-
-
348
-
-
348
Increase (decrease) in fair value of
warrant liability
1,102
1,097
(611
)
1,832
1,827
141
Other expense (income), net
166
156
157
418
408
125
Stock-based compensation expense
563
558
213
1,183
1,178
857
Restructuring expense
922
917
-
922
917
-
Transaction-related expenses
-
-
-
1,623
1,623
-
Adjusted EBITDA
$
(1,244
)
$
(1,049
)
$
(1,169
)
$
(2,519
)
$
(2,324
)
$
(2,927
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210125005671/en/
Company Contact: Dave Ristow Chief Financial Officer Qumu
Corporation Dave.Ristow@qumu.com +1.612.638.9045
Investor Contact: Matt Glover or Tom Colton Gateway
Investor Relations QUMU@gatewayir.com +1.949.574.3860
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