Record $94.2 Million Non-GAAP
Revenue
Record Non-GAAP Gross Profit Margin of
42%
Generated $21 Million in Operating Cash
Flow
Silver Spring Networks, Inc. (NYSE: SSNI) today announced
preliminary unaudited financial results for its third quarter and
nine month period ended September 30, 2013.
Q3 Results
Non-GAAP revenue (billings) for the third quarter was $94.2
million, up 11% year-over-year, driven by new customer deployments.
GAAP revenue was $72.5 million as compared to $39.6 million a year
ago.
Non-GAAP gross profit margin was 42.0%, up from 31.4% a year
ago, primarily due to a higher mix of higher margin revenue. GAAP
gross profit margin was 32.0% as compared to 11.2% a year ago.
Non-GAAP net income was $9.7 million as compared with breakeven
a year ago. GAAP net loss was $12.3 million as compared with a GAAP
net loss of $26.9 million a year ago.
Silver Spring generated $21.1 million in operating cash flow
during the quarter and ended the quarter with $143.4 million in
cash and investments and no debt outstanding.
“I am pleased with our third quarter results, generating strong
gross profit margins and cash flow, and we are on track to achieve
our 2013 annual guidance with 18% growth,” said Scott Lang,
Chairman, President, and Chief Executive Officer. “We are executing
on our business model by delivering the most innovative technology
and services to our clients.”
Business Highlights (through October 30, 2013, unless
otherwise stated)
- 17.5 million cumulative network
endpoints delivered from inception through September 30, 2013 –
up 17% from a year ago.
- CPFL Energia in Brazil completes
successful first phase of network and advanced metering
deployment for industrial customers – first commercial scale smart
grid deployment in Brazil driving significant energy and
operational savings.
- EDP Distribuição in Portugal
expands network, advanced metering and distribution automation
pilot – technology minimizing customer interruptions and enabling
smarter integration of renewables.
- Metrix partnership in New
Zealand to network 37 thousand homes and businesses --
retailers now able to deliver comprehensive energy information to
consumers in a disaggregated energy market.
- Citelum partnership in
Copenhagen – to establish a citywide network connecting 20
thousand street lights.
- Sacramento Municipal Utility
District renews managed services agreement for five years -
helping drive greater operational efficiency, provide disaster
recovery capability and deliver flexible and secure
environments.
Year to Date Results
Non-GAAP revenue (billings) for the nine month period ended
September 30, 2013, was $254.4 million, up 16% year-over-year,
driven by growth in new customer deployments. GAAP revenue was
$229.7 million as compared to $146.7 million a year ago.
Non-GAAP gross profit margin was 34.2%, as compared with 34.1% a
year ago. GAAP gross profit margin was 35.5% as compared to 14.4% a
year ago.
Non-GAAP net loss was $3.2 million as compared with a non-GAAP
net loss of $6.3 million year ago. GAAP net loss was $67.2 million
as compared with a GAAP net loss of $68.7 million a year ago. GAAP
net loss includes non-cash charges of $42.1 million in connection
with Silver Spring’s initial public offering.
Conference Call
Silver Spring will host a conference call today at 1:30 pm PT
(4:30 pm ET) to review its results for the third quarter ended
September 30, 2013 and its outlook for the future. During the
course of this call, Silver Spring may also disclose material
developments affecting its business and/or financial performance.
Listeners may access the conference call live at 877-407-0832
(U.S.) or 201-689-8433 (International) or via webcast at
http://ir.silverspringnet.com.
About Silver Spring Networks
Silver Spring Networks is a leading networking
platform and solutions provider for smart energy networks. Silver
Spring’s pioneering IPv6 networking platform, with 17.5 million
Silver Spring enabled devices delivered, is connecting utilities to
homes and business throughout the world with the goal of achieving
greater energy efficiency for the planet. Silver Spring’s
innovative solutions enable utilities to gain
operational efficiencies, improve grid reliability, and
empower consumers to monitor and manage energy consumption. Silver
Spring Networks’ customers include major utilities around the globe
such as Baltimore Gas & Electric, CitiPower & Powercor,
Commonwealth Edison, CPS Energy, Florida Power & Light, Jemena
Electricity Networks Limited, Pacific Gas & Electric, Pepco
Holdings, Progress Energy, and Singapore Power, among others. To
learn more, please visit www.silverspringnet.com.
Non-GAAP Financial Measures
Silver Spring believes that its results of operations under
generally accepted accounting principles, or GAAP, when considered
in isolation, may only provide limited insight into the performance
of its business in any given period. As a result, Silver Spring
manages its business, makes planning decisions, evaluates its
performance and allocates resources by assessing non-GAAP measures
such as non-GAAP revenue (billings), cost of non-GAAP revenue
(billings), non-GAAP gross profit (loss), non-GAAP operating loss,
non-GAAP net loss, non-GAAP earnings (loss) per share, and adjusted
EBITDA, in addition to other financial measures presented in
accordance with GAAP. Silver Spring believes that these non-GAAP
measures offer valuable supplemental information regarding the
performance of its business, and will help investors better
understand the sales volumes, and gross margin and profitability
trends, as well as the cash flow characteristics, of its business.
These non-GAAP measures should not be considered in isolation from,
are not a substitute for, and do not purport to be an alternative
to, revenue, cost of revenue, gross profit (loss), operating loss,
net loss, loss per share or any other performance measure derived
in accordance with GAAP. Silver Spring may consider whether other
significant non-recurring items that arise in the future should
also be excluded in calculating the non-GAAP financial measures it
uses.
Non-GAAP revenue (billings) represents amounts invoiced for
products for which ownership, typically evidenced by title and risk
of loss, has transferred or services that have been provided to the
customer, and for which payment is expected to be made in
accordance with normal payment terms. Non-GAAP revenue excludes
amounts for undelivered products, services to be performed in the
future, and amounts paid or payable to customers. Non-GAAP revenue
is initially recorded as deferred revenue and is recognized as GAAP
revenue when all revenue recognition criteria have been met under
Silver Spring’s accounting policies as described in Silver Spring’s
filings with the Securities and Exchange Commission. Silver Spring
reconciles revenue to billings by adding revenue to the change in
deferred revenue in a given period.
Cost of non-GAAP revenue (billings) represents the cost
associated with products and services that have been delivered to
the customer, excluding stock-based compensation and amortization
of intangibles. Cost of product shipments for which revenue is not
recognized in the period incurred is recorded as deferred cost of
revenue. Deferred cost of revenue is expensed in the statement of
operations as cost of revenue when the corresponding revenue is
recognized. Costs related to services are expensed in the period
incurred. Silver Spring reconciles cost of revenue to non-GAAP cost
of revenue by adding cost of revenue to the change in deferred cost
of revenue, less stock-based compensation and amortization of
intangibles included in cost of revenue, in a given period.
Non GAAP gross profit (loss) is the difference between non-GAAP
revenue and cost of non-GAAP revenue.
Non-GAAP operating income (loss) represents operating loss
adjusted for non-GAAP revenue (billings) and cost of non-GAAP
revenue (billings) and excludes expenses related to the
amortization of intangible assets, legal settlements, and
stock-based compensation.
Non-GAAP net income (loss) represents net loss adjusted for
non-GAAP revenue and cost of non-GAAP revenue, and excludes
expenses related to the amortization of intangible assets, legal
settlements, stock-based compensation, changes in fair value of
preferred stock warrant liabilities and embedded derivatives, and
loss on extinguishment of promissory notes.
Non-GAAP earnings (loss) per share represents non-GAAP net loss
divided by weighted average shares outstanding for the period.
Adjusted EBITDA is net loss adjusted for changes in deferred
revenue and deferred cost of revenue, other (income) expense, net,
provision for income taxes, depreciation and amortization,
stock-based compensation and certain other items management
believes affect the comparability of operating results.
Forward-Looking Statements
This press release contains forward-looking statements that
involve risks and uncertainties. These forward-looking
statements include statements regarding the momentum in Silver
Spring Networks’ business, future growth and future financial
results. Statements including words such as "anticipate",
"believe", "estimate" or "expect" and statements in the future
tense are forward-looking statements. These forward-looking
statements are preliminary estimates and expectations based on
current information and are subject to business and economic risks
and uncertainties that could cause actual events or actual future
results to differ materially from the expectations set forth in the
forward-looking statements. Important factors that could cause
results to differ materially from the statements herein include:
general economic risks; specific economic risks in different
geographies and among different industries; failure to maintain or
increase renewals and increase business from existing customers;
uncertainties around continued success in sales growth and market
share gains; lengthy sales cycles with no assurances that a
prospective customer will select Silver Spring’s products and
services; amounts included in backlog may not result in billings or
revenue; adverse publicity about, or consumer or political
opposition to, the smart grid; security breaches involving smart
grid products or services; the ability to integrate technology into
third-party devices and Silver Spring’s relationship with
third-party manufacturers; execution risks related to new product
introductions and innovation; the ability to attract and retain
personnel, including members of Silver Spring’s management team;
changes in strategy; technological changes that make Silver
Spring’s products and services less competitive; dependence on a
limited number of key suppliers and customers; competition,
particularly from larger companies with more resources than Silver
Spring; risks related to retention of management; international
business uncertainties; the ability to acquire and integrate other
businesses; and other risk factors set forth from time to time in
Silver Spring’s filings with the SEC, copies of which are available
free of charge at the SEC’s website at www.sec.gov. All
forward-looking statements in this press release reflect Silver
Spring’s expectations as of October 30, 2013. Silver Spring
undertakes no obligation, and expressly disclaims any obligation,
to update any forward-looking statements in this press release in
light of new information or future events. In addition, the
preliminary financial results set forth in this press release are
estimates based on information currently available to Silver
Spring. While Silver Spring believes these estimates are
meaningful, they could differ from the actual amounts
that Silver Spring ultimately reports in its Quarterly Report
on Form 10-Q for the fiscal quarter ended September 30,
2013. Silver Spring assumes no obligation and does not
intend to update these estimates prior to filing its Form 10-Q for
the fiscal quarter ended September 30, 2013.
SILVER SPRING NETWORKSUNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except
per share data) Three Months
EndedSeptember 30, Nine Months EndedSeptember
30, 2013 2012 2013 2012 Revenue:
Product revenue $ 56,650 $ 30,394 $ 146,366 $ 122,292 Service
revenue 15,831 9,234 83,328
24,374
Net revenue 72,481
39,628 229,694 146,666 Cost of revenue:
Product cost of revenue 34,844 22,846 100,152 88,358 Service cost
of revenue 14,411 12,348 47,932
37,137
Total cost of revenue
49,255 35,194 148,084 125,495
Gross profit 23,226 4,434 81,610
21,171 Operating expenses: Research and development
16,980 15,480 60,851 46,872 Sales and marketing 7,424 6,822 26,514
21,732 General and administrative 10,937 6,599
35,952 21,024
Total operating
expenses
35,341
28,901
123,317
89,628
Operating income (loss) (12,115 )
(24,467 ) (41,707 ) (68,457
) Other income (expense) Interest expense (54 )
(1,198 ) (1,290 ) (3,351 ) Conversion of promissory notes and
remeasurement of warrants and derivatives -
(830 ) (23,676 ) 3,570
Other income
(expense), net
(54
)
(2,028
)
(24,966
)
219
Income (loss) before provision for income taxes (12,169 )
(26,495 ) (66,673 ) (68,238 ) Provision for income taxes
100 373 492 469
Net income (loss) $ (12,269 )
$ (26,868 ) $ (67,165 )
$ (68,707 ) Deemed dividend to convertible
preferred stockholders -
-
(105,000 ) -
Net income (loss)
attributable to common stockholders $ (12,269
) $ (26,868 ) $ (172,165
) $ (68,707 ) Net income
(loss) per share Basic net income (loss) per share
attributable to common stockholders $ (0.26
) $ (7.30 ) $ (4.96
) $ (18.75 ) Diluted net income
(loss) per share attributable to common stockholders $
(0.26 ) $ (7.30 ) $
(4.96 ) $ (18.75 )
Weighted average number of shares used in computation Basic 46,729
3,682 34,733 3,664 Diluted 46,729 3,682 34,733 3,664
Non-GAAP results (in thousands, except per share data) The
following tables reconcile the Company's net income (loss) and
income (loss) per share as presented in its unaudited Condensed
Consolidated Statements of Operations and prepared in accordance
with GAAP to its non-GAAP net income (loss) and non-GAAP income
(loss) per share.
Three Months EndedSeptember
30, Nine Months EndedSeptember 30, 2013
2012 2013 2012 Net income (loss)
$ (12,269 ) $ (26,868 )
$ (67,165 ) $ (68,707 )
Change in deferred revenue, net of foreign currency translation
21,735 45,593 24,744 72,091 Change in deferred cost of revenue, net
of foreign currency translation (6,842 ) (23,858 ) (30,028 )
(20,867 ) Amortization of intangibles in cost of revenue 48 48 144
144 Conversion of promissory notes and remeasurement of warrants
and derivatives - 830 23,676 (3,570 ) Convertible notes accretion /
interest - 1,069 935 2,787 Stock-based compensation 6,990 3,217
44,503 11,823
Non-GAAP net income (loss) $
9,662 $ 31 $ (3,191 )
$ (6,299 ) Non-GAAP income (loss)
per share Basic $ 0.21 $
0.01 $ (0.09 ) $ (1.72
) Diluted $ 0.19 $ 0.00
$ (0.09 ) $ (1.72 )
Weighted average number of shares used in computation Basic
46,729 3,682 34,733 3,664 Diluted 49,620 29,556 34,733 3,664
SILVER SPRING NETWORKS, INC.UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS(In thousands, except par
values) September 30,2013
December 31,2012 (a)
ASSETS Current assets:
Cash and cash equivalents $ 81,865 $ 72,646 Short-term investments
61,566 - Accounts receivable 59,587 56,528 Inventory 6,997 7,731
Deferred cost of revenue 65,869 45,298 Prepaid expenses and other
current assets 5,615 3,456 Total
current assets 281,499 185,659 Property and equipment, net
12,857 12,701 Deferred cost of revenue, non-current 209,232 199,865
Deferred tax assets, non-current 8,075 8,265 Other long-term assets
2,275 11,254
TOTAL ASSETS $
513,938 $ 417,744
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS'
DEFICIT Current liabilities: Accounts payable $ 26,323 $ 28,104
Accrued liabilities 19,156 14,831 Deferred revenue 149,990 89,838
Current portion of capital lease obligations 1,760 1,647 Deferred
tax liability 7,950 7,897 Total
current liabilities 205,179 142,317 Deferred revenue,
non-current 382,556 418,218 Preferred stock warrant liability -
11,261 Convertible promissory notes and embedded derivatives -
56,319 Other liabilities 15,138 18,412 Convertible preferred
stock: $0.001 par value; no shares authorized, issued and
outstanding, and aggregate liquidation preference of $0 as of
September 30, 2013; 26,072 shares authorized, 22,366 shares issued
and outstanding, and aggregate liquidation preference of $381,338
as of December 31, 2012 - 270,725 Stockholders’ equity
(deficit): Preferred stock, $0.001 par value, 10,000 shares
authorized and no shares issued or outstanding as of September 30,
2013; no shares authorized, issued or outstanding,as of December
31, 2012 - - Common stock, $0.001 par value; 1,000,000
shares authorized, 46,933 shares issued and outstanding as of
September 30, 2013; 80,000 shares authorized and 3,764 shares
issued and outstanding as of December 31, 2012 46 4
Additional paid-in capital 528,598 51,078 Accumulated other
comprehensive income (loss) 40 (136 ) Accumulated deficit
(617,619 ) (550,454 )
Total stockholders’
deficit (88,935 ) (499,508 )
TOTAL LIABILITIES, CONVERTIBLE PREFERRED STOCK AND
STOCKHOLDERS' DEFICIT $ 513,938 $
417,744 (a) Derived from audited consolidated
financial statements
SILVER SPRING
NETWORKSUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOW(In thousands) Three
Months EndedSeptember 30, Nine Months
EndedSeptember 30, 2013 2012 2013
2012 OPERATING ACTIVITIES Net income
(loss) $ (12,269 ) $ (26,868
) $ (67,165 ) $ (68,707
) Adjustments to reconcile net loss to net cash used in
operating activities: Depreciation and amortization 1,624 1,815
4,990 5,459 Stock-based compensation 6,990 3,217 44,503 11,823
Conversion of promissory notes and remeasurement of warrants and
derivatives - 830 23,676 (3,570 ) Other non-cash adjustments 113
808 1,565 2,464 Changes in assets and liabilities: Accounts
receivable 10,057 (14,077 ) (3,126 ) (30,833 ) Inventory 5,541
(2,421 ) 534 (5,676 ) Prepaid expenses and other current assets 939
823 (2,248 ) 447 Deferred cost of revenue (6,865 ) (23,858 )
(29,938 ) (20,867 ) Other long-term assets 1,484 (902 ) 3,846
(2,356 ) Accounts payable (9,119 ) 4,120 (1,746 ) 7,330 Accrued
liabilities 2,917 (1,382 ) 2,379 (3,053 ) Customer deposits (1 )
(146 ) (247 ) (6,954 ) Deferred revenue 21,824 45,593 24,490 72,091
Other liabilities (2,104 ) 2,249 (3,343
) 4,122
Net cash provided by (used in) operating
activities 21,131 (10,199
) (1,830 ) (38,280
) INVESTING ACTIVITIES Decrease in
restricted cash - - - 140
Purchases of short-term investments
(61,451 ) - (61,451 ) - Purchases of property and equipment
(881 ) (1,116 ) (3,343 ) (4,249 )
Net cash
used in investing activities (62,332 )
(1,116 ) (64,794 )
(4,109 ) FINANCING ACTIVITIES
Payment upon termination of preferred stock warrants of a related
party - - (12,000 ) - Proceeds from initial public offering, net of
offering costs (233 ) - 84,472 - Proceeds from private placement of
common stock with a related party - - 12,000 - Payments on capital
lease obligations (541 ) (380 ) (1,485 ) (888 ) Proceeds from
sale-leaseback transaction - - - 1,676 Proceeds from issuance of
convertible notes, net of paid issuance costs - - - 28,993 Proceeds
from issuance of common stock, net of repurchases 388 143 578 545
Taxes paid related to net share settlement of equity awards
(1,518 ) - (7,722 ) -
Net
cash provided by (used in) financing activities
(1,904 ) (237 )
75,843 30,326 Net
increase (decrease) in cash and cash equivalents (43,105 ) (11,552
) 9,219 (12,063 ) Cash and cash equivalents - beginning of period
124,970 71,176 72,646
71,687
Cash and cash equivalents - end of
period $ 81,865 $ 59,624
$ 81,865 $ 59,624
SILVER SPRING NETWORKS, INC.UNAUDITED
RECONCILIATION OF NET REVENUE BETWEEN GAAP AND NON-GAAP(in
thousands, except percentages)
TYPE
Q3CY12 Q4CY12
Q1CY13 Q2CY13
Q3CY13 YoY%Change GAAP net
revenue Product net revenue $ 30,394 $ 40,332 $ 41,720 $ 47,996
$ 56,650 86 % Service net revenue Managed services and SaaS 4,756
4,018 4,559 37,508 9,835 107 % Professional 4,478
5,721 7,424 18,006
5,996 34 % Total service net revenue $ 9,234 $ 9,739
$ 11,983 $ 55,514 $ 15,831 71 %
Total GAAP net revenue $ 39,628
$ 50,071 $ 53,703
$ 103,510 $ 72,481 83 % %
Product 77 % 81 % 78 % 46 % 78 % % Service 23 % 19 % 22 % 54 % 22 %
Change in deferred net revenue Change in deferred product
revenue $ 37,545 $ 25,793 $ 14,702 $ 17,905 $ 16,017 Change in
deferred service revenue Managed services and SaaS 3,555 6,441
3,825 (28,245 ) 16 Professional 4,493 3,271
1,541 (6,719 ) 5,702
Total change in deferred service revenue 8,048
9,712 5,366 (34,964 ) 5,718
Total change in deferred revenue $ 45,593 $ 35,505 $ 20,068
$ (17,059 ) $ 21,735
Non-GAAP revenue Product net
revenue $ 67,939 $ 66,125 $ 56,422 $ 65,901 $ 72,667 7 % Service
net revenue Managed services and SaaS 8,311 10,459 8,384 9,263
9,851 19 % Professional 8,971 8,992
8,965 11,287 11,698 30 %
Total service net revenue $ 17,282 $ 19,451 $ 17,349
$ 20,550 $ 21,549 25 %
Total non-GAAP net
revenue $ 85,221 $ 85,576
$ 73,771 $ 86,451
$ 94,216 11 % % Product 80 % 77 % 76 % 76 % 77
% % Service 20 % 23 % 24 % 24 % 23 %
SOLUTION
GAAP net revenue Advanced metering infrastructure $ 34,086 $
46,250 $ 45,149 $ 97,598 $ 66,774 96 % Distribution automation and
demand side management 5,542 3,821
8,554 5,912 5,707 3 %
Total GAAP net revenue $ 39,628
$ 50,071 $ 53,703
$ 103,510 $ 72,481 83 % %
Advanced metering infrastructure 86 % 92 % 84 % 94 % 92 % %
Distribution automation and demand side management 14 % 8 % 16 % 6
% 8 % Change in deferred net revenue Advanced metering
infrastructure $ 44,880 $ 32,208 $ 23,219 $ (21,380 ) $ 19,244
Distribution automation and demand side management 713
3,297 (3,151 ) 4,321
2,491 Total change in deferred net revenue $ 45,593 $
35,505 $ 20,068 $ (17,059 ) $ 21,735
Non-GAAP net
revenue Advanced metering infrastructure $ 78,966 $ 78,458 $
68,368 $ 76,218 $ 86,018 9 % Distribution automation and demand
side management 6,255 7,118
5,403 10,233 8,198 31 %
Total
Non-GAAP net revenue $ 85,221 $
85,576 $ 73,771 $
86,451 $ 94,216 11 % % Advanced
metering infrastructure 93 % 92 % 93 % 88 % 91 % % Distribution
automation and demand side management 7 % 8 % 7 % 12 % 9 %
GEOGRAPHY
GAAP net revenue United States $ 35,110 $ 46,421 $ 50,747 $
94,516 $ 68,562 95 % International 4,518 3,650 2,956 8,994 3,919
-13 %
Total GAAP net
revenue $ 39,628 $ 50,071
$ 53,703 $ 103,510
$ 72,481 83 % % United States 89 % 93 %
94 % 91 % 95 % % International 11 % 7 % 6 % 9 % 5 % Change
in deferred net revenue United States $ 38,325 $ 21,927 $ 8,839 $
(21,032 ) $ 15,289 International 7,268 13,578 11,229 3,973 6,446
Total change in deferred net
revenue $ 45,593 $ 35,505 $ 20,068 $ (17,059 ) $ 21,735
Non-GAAP net revenue United States $ 73,435 $ 68,348 $
59,586 $ 73,484 $ 83,851 14 % International 11,786 17,228 14,185
12,967 10,365 -12 %
Total
non-GAAP net revenue $ 85,221 $
85,576 $ 73,771 $
86,451 $ 94,216 11 % %
United States 86 % 80 % 81 % 85 % 89 % % International 14 % 20 % 19
% 15 % 11 %
SILVER SPRING NETWORKS, INC.UNAUDITED
SUPPLEMENTAL FINANCIAL INFORMATION(in thousands, except
percentages and headcount)
Q3CY12 Q4CY12
Q1CY13 Q2CY13
Q3CY13 YoY%Change CASH
FLOW DATA Operating cash flow $ (10,199 ) $ 14,002 $ (8,913 ) $
(14,048 ) $ 21,131 307 % Operating cash flow - TTM (43,330 )
(24,278 ) (19,847 ) (19,158 ) 12,172 128 %
BALANCE SHEET
DATA Cash, cash equivalents and short-term investments $ 59,624
$ 72,646 $ 142,354 $ 124,970 $ 143,431 141 % Deferred net revenue
End of quarter 472,551 508,056 528,176 510,722 532,546 Less:
Beginning of quarter (426,958 ) (472,551 ) (508,056 ) (528,176 )
(510,722 ) Foreign currency translation adjustment -
- (52 ) 395 (89 ) Change
in deferred net revenue, net of foreign currency translation $
45,593 $ 35,505 $ 20,068 $ (17,059 ) $ 21,735
Deferred cost of revenue End of quarter 227,170 245,163
260,572 268,236 275,101 Less: Beginning of quarter (203,312 )
(227,170 ) (245,163 ) (260,572 ) (268,236 ) Foreign currency
translation adjustment - - 14
99 (23 ) Change in deferred cost of
revenue, net of foreign currency translation $ 23,858 $
17,993 $ 15,423 $ 7,763 $ 6,842
STOCK-BASED COMPENSATION Cost of goods sold $ 521 $ 560 $
6,724 $ 2,531 $ 1,376 164 % Research and development 876 934 9,544
3,607 1,905 117 % Sales and marketing 632 550 3,346 1,526 950 50 %
General and administrative 1,188 1,225
7,054 3,181 2,759 132 %
Total $ 3,217 $ 3,269 $ 26,668 $ 10,845
$ 6,990 117 %
EMPLOYEES 570 566 572 589 608 7
%
HOMES & BUSINESSES Cumulative network endpoints
delivered* 14,967 15,781 16,507 17,008 17,509 17 % *Endpoints refer
to communication modules in electric meters
SILVER SPRING
NETWORKSUNAUDITED RECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURES(In thousands, except per share data and
percentages)
Q3CY12 Q4CY12
Q1CY13 Q2CY13
Q3CY13 YOY %Change QUARTERLY
RECONCILIATION OF RESULTS Net revenue GAAP net
revenue $ 39,628 $ 50,071 $
53,703 $ 103,510 $ 72,481 83 %
Change in deferred revenue, net of foreign currency translation
45,593 35,505 20,068
(17,059 ) 21,735
Non-GAAP net revenue
$ 85,221 $ 85,576
$ 73,771 $ 86,451
$ 94,216 11 %
Gross profit
GAAP gross profit $ 4,434 $
10,548 $ 10,134 $ 48,250
$ 23,226 424 % Change in deferred revenue, net of
foreign currency translation 45,593 35,505 20,068 (17,059 ) 21,735
Change in deferred cost of revenue, net of foreign currency
translation (23,858 ) (17,993 ) (15,423 ) (7,763 ) (6,842 )
Amortization of intangibles in cost of revenue 48 48 48 48 48
Stock-based compensation 521 560
6,724 2,531 1,376
Non-GAAP
gross profit $ 26,738 $
28,668 $ 21,551 $
26,007 $ 39,543 48 % GAAP gross
margin % (as a % of GAAP net revenue) 11 % 21 % 19 % 47 % 32 %
Non-GAAP gross margin % (as a % of non-GAAP net revenue) 31 % 34 %
29 % 30 % 42 %
Operating income (loss) GAAP
operating income (loss) $ (24,467 )
$ (20,187 ) $ (39,574 )
$ 9,982 $ (12,115 ) 50 % Change
in deferred revenue, net of foreign currency translation 45,593
35,505 20,068 (17,059 ) 21,735 Change in deferred cost of revenue,
net of foreign currency translation (23,858 )
(17,993 )
(15,423 ) (7,763 ) (6,842 ) Amortization of intangibles in cost of
revenue 48 48 48 48 48 Stock-based compensation 3,217
3,269 26,668 10,845
6,990
Non-GAAP operating income (loss)
$ 533 $ 642 $
(8,213 ) $ (3,947 ) $
9,816 1742 % GAAP operating margin % (as a % of GAAP
revenue) -62 % -40 % -74 % 10 % -17 % Non-GAAP operating margin %
(as a % of non-GAAP net revenue) 1 % 1 % -11 % -5 % 10 %
Adjusted EBITDA GAAP net income (loss) $
(26,868 ) $ (21,010 ) $
(64,366 ) $ 9,470 $
(12,269 ) 54 % Change in deferred revenue, net of
foreign currency translation 45,593 35,505 20,068 (17,059 ) 21,735
Change in deferred cost of revenue, net of foreign currency
translation (23,858 ) (17,993 ) (15,423 ) (7,763 ) (6,842 ) Other
(income) expense, net 2,028 902 24,728 184 54 Provision for income
taxes 373 (79 ) 64 328 100 Depreciation and amortization 1,815
1,796 1,677 1,689 1,624 Stock-based compensation 3,217
3,269 26,668 10,845
6,990
Adjusted EBITDA $
2,300 $ 2,390 $
(6,584 ) $ (2,306 ) $
11,392 395 %
Net income (loss) GAAP
net income (loss) $ (26,868 ) $
(21,010 ) $ (64,366 ) $
9,470 $ (12,269 ) 54 % Change in
deferred revenue, net of foreign currency translation 45,593 35,505
20,068 (17,059 ) 21,735 Change in deferred cost of revenue, net of
foreign currency translation (23,858 ) (17,993 ) (15,423 ) (7,763 )
(6,842 ) Amortization of intangibles in cost of revenue 48 48 48 48
48 Convertible notes accretion / interest 1,069 1,081 935 - -
Conversion of promissory notes and remeasurement of warrants and
derivatives 830 (308 ) 23,676 - - Stock-based compensation
3,217 3,269 26,668 10,845
6,990
Non-GAAP net income (loss)
$ 31 $ 592 $
(8,394 ) $ (4,459 ) $
9,662 31068 % GAAP net margin % (as a % of GAAP
revenue) -68 % -42 % -120 % 9 % -17 % Non-GAAP net margin % (as a %
of non-GAAP net revenue) 0 % 1 % -11 % -5 % 10 %
GAAP
income (loss) per share Basic $ (7.30
) $ (5.65 ) $
(16.18
)*
$ 0.20 $ (0.26 ) Diluted
$ (7.30 ) $ (5.65 )
$ (16.18
)*
$ 0.19 $ (0.26 ) Weighted
average number of shares used in computation Basic 3,682 3,720
10,469 46,599 46,729 Diluted 3,682 3,720 10,469 48,995 46,729 *
GAAP income (loss) per share is based on net loss attributable to
common stockholders
Non-GAAP income (loss) per share
Basic $ 0.01 $ 0.16 $
(0.80 ) $ (0.10 ) $
0.21 Diluted $ 0.00 $
0.02 $ (0.80 ) $ (0.10
) $ 0.19 Weighted average number of shares
used in computation Basic 3,682 3,720 10,469 46,599 46,729 Diluted
29,556 29,394 10,469 46,599 49,620
Silver Spring Networks, Inc.Tricia Gugler,
650-839-4504Investor Relationstgugler@silverspringnet.comNoel
Hartzell, 650-839-4184Global
Communicationsnhartzell@silverspringnet.com
SILVER SPRING NETWORKS INC (NYSE:SSNI)
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From Jul 2024 to Aug 2024
SILVER SPRING NETWORKS INC (NYSE:SSNI)
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