Asure Software, Inc. (NASDAQ: ASUR), a leading
provider of Human Capital Management (HCM) and workspace management
software, reported results for the first quarter ended
March 31, 2019.
First Quarter 2019 Key Financial Highlights
- Total revenue of $26.8 million, up 39% year-over-year
- Recurring revenue of $23.6 million, up 35% year-over-year
- Professional services, hardware and other revenue of $3.2
million, up 76% year-over-year
- Bookings up 44% year-over-year
- Short-term backlog (within a 12-month period) was $31.2
million
- Total backlog (short and long-term) currently exceeds $50.0
million
First Quarter 2019 Financial Summary
|
For the
three months ended |
In thousands, except per share data |
March 31, 2019 |
|
March 31, 2018 |
|
Change (%) |
Revenue |
$ |
26,760 |
|
|
$ |
19,304 |
|
|
39 |
% |
|
|
|
|
|
|
GAAP Gross Profit |
$ |
18,062 |
|
|
$ |
13,747 |
|
|
31 |
% |
GAAP Gross Margin |
67.5 |
% |
|
71.2 |
% |
|
(5 |
)% |
|
|
|
|
|
|
Non-GAAP Gross Profit* |
$ |
18,703 |
|
|
$ |
14,048 |
|
|
33 |
% |
Non-GAAP Gross Margin* |
69.9 |
% |
|
72.8 |
% |
|
(4 |
)% |
|
|
|
|
|
|
GAAP Net Loss |
$ |
(2,894 |
) |
|
$ |
(1,925 |
) |
|
50 |
% |
Non-GAAP Net Income* |
$ |
3,342 |
|
|
$ |
1,656 |
|
|
102 |
% |
|
|
|
|
|
|
GAAP Net Loss per Share |
$ |
(0.19 |
) |
|
$ |
(0.15 |
) |
|
27 |
% |
Non-GAAP Net Earnings per
Share** |
$ |
0.22 |
|
|
$ |
0.13 |
|
|
69 |
% |
|
|
|
|
|
|
Non-GAAP EBITDA* |
$ |
6,862 |
|
|
$ |
3,786 |
|
|
81 |
% |
Non-GAAP EBITDA Margin* |
25.6 |
% |
|
19.6 |
% |
|
31 |
% |
_______________________
* Non-GAAP financial measures are reconciled to GAAP in the
tables set forth in this
release.
** Historical non-GAAP Net Earnings Per Share adjusted for 0%
effective tax rate for comparison purposes.
Management Commentary
“We kicked off 2019 with solid momentum and are keenly focused
on accelerating the velocity of our cross-selling opportunities and
scaling our business,” said Pat Goepel, CEO of Asure Software.
“Our focus this year continues to be the harmonization of recent
acquisitions, margin improvement, realization of better cash
generation and investment in product innovation and continued
execution on our cross-selling initiatives,” concluded Goepel.
“We are pleased that our recurring revenue continues to grow and
that we generated positive cash flow from operations during the
quarter,” said Kelyn Brannon, CFO of Asure Software. "Our AWS cloud
migration and NetSuite ERP implementation are still on schedule.
These initiatives, combined with other modernization and
optimization programs, are providing a powerful foundation that
Asure is already reaping benefits in multiple areas.”
Asure delivered the following results for its first
quarter ended March 31, 2019:
Revenue: Total revenue for the first quarter of
2019 was $26.8 million, an increase of 39% from $19.3 million in
the first quarter of 2018. Revenue mix for the first quarter
of 2019 was comprised primarily of recurring revenue, which
represented 88% of total revenue while professional services,
hardware and other representing the remaining 12%. HCM revenue
represented 76% of total and Workspace was 24%, in line with first
quarter of 2018.
Gross Profit: GAAP gross profit for the first
quarter of 2019 was $18.1 million (67.5% margin), a 31% increase
from $13.7 million (71.2% margin) in the first quarter of 2018.
Non-GAAP gross profit* was $18.7 million (69.9% margin), up 33%
from $14.0 million (72.8% margin) in the year-ago quarter due to
the increasing mix of HCM in our business.
Earnings (Loss) per Share: GAAP loss per share
was $(0.19), compared with a net loss per share of $(0.15) in the
first quarter of 2018. Non-GAAP earnings per share* was $0.22, as
compared with $0.13 in the year-ago quarter.
Non-GAAP EBITDA*: Non-GAAP EBITDA was $6.9
million (25.6% margin), an increase of 81% from $3.8 million (19.6%
margin) in the first quarter of 2018.
Recent Business Highlights
New Wins: During the first quarter, Asure
secured HCM wins across a range of companies including City of
Paterson, New Jersey, Clergy Financial Resources, LLC and Kids Care
Home Health of Idaho. First quarter Workspace wins included IHB
Systems Inc., Telia (Lithuania), Whitlock, and Thompson Coburn.
Launches Environmental Workplace Occupancy
Sensors: New smart IoT devices deliver real-time insights
on environmental conditions around the office building, including
temperature, light, noise, air pressure and air quality. By
bringing utilization analytics and important environmental data
into one unified system, organizations can not only confidently
implement smarter office designs that reflect a more effective use
of space based on how their people actually work, but can also make
educated and cost-effective decisions about their workspace that
will improve employee’s physical health, well-being and
productivity.
Asure Wins 2019 Silver Edison Award: Asure won
the award in the Energy and Sustainability category for Smart
Climate Control for its SmartView workplace occupancy sensor system
that accurately captures environmental conditions around the office
building, including temperature, light, noise, air pressure and air
quality.
Fiscal 2019 Financial GuidancePat Goepel, CEO
of Asure Software, commented, “Our business was on-track in Q1 and
we feel that we're on a good trajectory for the year so that we can
execute on a consistent basis. As a result, we are reiterating our
guidance for 2019.”
2019
Guidance |
Range |
|
|
|
|
Revenue |
$ |
104.0 |
million |
to |
$ |
107.0 |
million |
Non-GAAP EBITDA |
$ |
23.0 |
million |
to |
$ |
25.0 |
million |
Additional 2019
Guidance |
Range |
|
|
|
|
Interest expense |
$ |
11.0 |
million |
to |
$ |
12.0 |
million |
Depreciation |
$ |
2.5 |
million |
to |
$ |
3.5 |
million |
Amortization |
$ |
11.5 |
million |
to |
$ |
12.5 |
million |
Stock compensation
expense |
$ |
2.0 |
million |
to |
$ |
3.0 |
million |
Acquisition costs and other
one-time expenses |
$ |
3.5 |
million |
to |
$ |
4.5 |
million |
Basic average shares
outstanding |
15.4 |
million |
to |
15.9 |
million |
Non-GAAP diluted shares
outstanding |
15.7 |
million |
to |
16.0 |
million |
Non-GAAP Effective Tax
Rate |
0% |
|
|
|
|
Asure also expects to generate positive cash flow from
operations for the full fiscal 2019 year.
Conference Call DetailsAsure management will
host a conference call today Thursday, May 9, 2019 at 4:30 p.m.
Eastern time (3:30 p.m. Central time) to discuss these financial
results and outlook. Asure CEO Pat Goepel and CFO Kelyn
Brannon will host the presentation, followed by a question and
answer period.
U.S. dial-in: 877-853-5636International dial-in:
631-291-4544Conference ID: 9494247
The conference call will be broadcasted live and available for
replay via the investor section of the company's website.
*Non-GAAP Financial Measures: This press
release includes information about non-GAAP diluted earnings per
share, non-GAAP tax rates, non-GAAP net income, non-GAAP gross
profit, and non-GAAP EBITDA (collectively the "non-GAAP financial
measures"). These non-GAAP financial measures are measurements of
financial performance that are not prepared in accordance with U.S.
generally accepted accounting principles and computational methods
may differ from those used by other companies. Non-GAAP financial
measures are not meant to be considered in isolation or as a
substitute for comparable GAAP measures and should be read only in
conjunction with the company's consolidated financial statements
prepared in accordance with GAAP.
Non-GAAP EBITDA differs from GAAP net loss in that it excludes
things such as interest, tax, depreciation, amortization, stock
compensation, and one-time expenses. Asure Software is unable to
predict with reasonable certainty the ultimate outcome of these
exclusions without unreasonable effort. Therefore, Asure Software
has not provided guidance for GAAP net loss or a reconciliation of
the foregoing forward-looking Non-GAAP EBITDA guidance to GAAP net
loss.
Management uses both GAAP and non-GAAP measures when planning,
monitoring, and evaluating the company's performance.
The primary purpose of using non-GAAP measures is to provide
supplemental information that may prove useful to investors and to
enable investors to evaluate the company's results in the same way
management does.
Management believes that supplementing GAAP disclosure with
non-GAAP disclosure provides investors with a more complete view of
the company's operational performance and allows for meaningful
period-to-period comparisons and analysis of trends in the
company's business. Further, to the extent that other companies use
similar methods in calculating non-GAAP measures, the provision of
supplemental non-GAAP information can allow for a comparison of the
company's relative performance against other companies that also
report non-GAAP operating results.
Specifically, management is excluding the following items from
its non-GAAP earnings per share, as applicable, for the periods
presented in the first quarter 2019 financial statements and for
its non-GAAP estimates for the full fiscal 2019:
Stock-Based Compensation Expenses: The
company's compensation strategy includes the use of stock-based
compensation to attract and retain employees and executives. It is
principally aimed at aligning their interests with those of our
stockholders and at long-term employee retention, rather than to
motivate or reward operational performance for any particular
period. Thus, stock-based compensation expense varies for reasons
that are generally unrelated to operational decisions and
performance in any particular period.
Amortization of Purchased Intangibles: The
company views amortization of acquisition-related intangible
assets, such as the amortization of the cost associated with an
acquired company's research and development efforts, trade names,
customer lists and customer relationships, and acquired lease
intangibles, as items arising from pre-acquisition activities
determined at the time of an acquisition. While these intangible
assets are continually evaluated for impairment, amortization of
the cost of purchased intangibles is a static expense, one that is
not typically affected by operations during any particular
period.
Income Tax Effects and Adjustments: Beginning
in first quarter 2018, the company started using a fixed projected
non-GAAP tax rate in order to provide better consistency across the
interim reporting periods by eliminating the effects of items such
as changes in the tax valuation allowance and non-cash tax effects
of acquired goodwill and amortization, since each of these can vary
in size and frequency. This tax rate could be subject to change for
a variety of reasons, such as significant changes in the
acquisition activity or fundamental tax law changes in major
jurisdictions where the company operates. The company re-evaluates
this tax rate on an annual basis or when any significant events
that may materially affect this rate occur. The non-GAAP tax rate
is currently projected to be approximately zero (0.0) percent.
Amortization of Capitalized Internal-Use Software,
Acquisition-Related, and One-Time Expenses: The company’s
non-GAAP financial measures exclude amortization of internal-use
capitalized software costs and acquisition-related expenses as well
as one-time expenses, such as material tax credits, material
interest-expense credits, severance, recruitment, and
relocation.
About Asure
Software Asure
Software, Inc. (NASDAQ: ASUR), headquartered in Austin, Texas,
offers intuitive and innovative solutions designed to help
organizations of all sizes and complexities build companies of the
future. Our cloud platforms enables clients direct and indirect,
worldwide to better manage their people and space in a mobile,
digital, multi-generational, and global workplace. Asure Software's
offerings include a fully-integrated HCM platform, flexible
benefits and compliance administration, HR consulting, and time and
labor management as well as a full suite of workspace management
solutions for conference room scheduling, desk sharing programs,
and real estate optimization. For more information, please visit
www.asuresoftware.com.
"Safe harbor" statement under the Private Securities Litigation
Reform Act of 1995: This press release contains forward-looking
statements about our financial results, which may include expected
GAAP and non-GAAP financial and other operating and non-operating
results, including revenue, net income, diluted earnings per share,
operating cash flow growth, operating margin improvement, deferred
revenue growth, expected revenue run rate, expected tax rates,
stock-based compensation expenses, amortization of purchased
intangibles, amortization of debt discount and shares outstanding.
The achievement or success of the matters covered by such
forward-looking statements involves risks, uncertainties and
assumptions. If any such risks or uncertainties materialize or if
any of the assumptions prove incorrect, the company's results could
differ materially from the results expressed or implied by the
forward-looking statements we make.
The risks and uncertainties referred to above include -- but are
not limited to -- risks associated with possible fluctuations in
the company's financial and operating results; the company's rate
of growth and anticipated revenue run rate, including the company's
ability to convert deferred revenue and unbilled deferred revenue
into revenue and cash flow, and ability to maintain continued
growth of deferred revenue and unbilled deferred revenue; foreign
currency exchange rates; errors, interruptions or delays in the
company's services or the company's Web hosting; breaches of the
company's security measures; domestic and international regulatory
developments, including the adoption of new privacy laws; the
financial and other impact of any previous and future acquisitions;
the nature of the company's business model, including risks related
to government contracts; the company's ability to continue to
release, gain customer acceptance of and provide support for new
and improved versions of the company's services; successful
customer deployment and utilization of the company's existing and
future services; changes in the company's sales cycle; competition;
various financial aspects of the company's subscription model;
unexpected increases in attrition or decreases in new business; the
company's ability to realize benefits from strategic partnerships
and strategic investments; the emerging markets in which the
company operates; unique aspects of entering or expanding in
international markets, including the compliance with United States
export control laws, the company's ability to hire, retain and
motivate employees and manage the company's growth; changes in the
company's customer base; technological developments; litigation and
any related claims, negotiations and settlements, including with
respect to intellectual property matters or industry-specific
regulations; unanticipated changes in the company's effective tax
rate; factors affecting the company's outstanding convertible
notes, term loan, and revolving credit facility; fluctuations in
the number of company shares outstanding and the price of such
shares; collection of receivables; interest rates; factors
affecting the company's deferred tax assets and ability to value
and utilize them; the potential negative impact of indirect tax
exposure; the risks and expenses associated with the company's real
estate and office facilities space; and general developments in the
economy, financial markets, credit markets and the impact of
current and future accounting pronouncements and other financial
reporting standards.
Further information on these and other factors that could affect
the company's financial results is included in the reports on Forms
10-K, 10-Q and 8-K and in other filings we make with the Securities
and Exchange Commission from time to time. These documents are
available on the SEC Filings section of the Investor Information
section of the company's website at investor.asuresoftware.com
Asure Software assumes no obligation and does not intend to
update these forward-looking statements, except as required by
law.
© 2019 Asure Software, Inc. All rights reserved.
ASURE SOFTWARE,
INC.CONSOLIDATED BALANCE
SHEETS(Amounts in thousands)
|
March 31, 2019(unaudited) |
|
December 31, 2018 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
16,591 |
|
|
$ |
15,444 |
|
Accounts receivable, net of allowance for doubtful accounts of
$1,150 and $1,467 atMarch 31, 2019 and December 31, 2018,
respectively |
14,377 |
|
|
16,028 |
|
Inventory |
4,121 |
|
|
3,117 |
|
Prepaid expenses and other current assets |
3,638 |
|
|
3,120 |
|
Total current assets before funds held for
clients |
38,727 |
|
|
37,709 |
|
Funds held for clients |
123,810 |
|
|
122,206 |
|
Total current assets |
162,537 |
|
|
159,915 |
|
Property and equipment,
net |
10,078 |
|
|
8,948 |
|
Goodwill |
116,277 |
|
|
111,387 |
|
Intangible assets, net |
78,812 |
|
|
76,760 |
|
Other assets |
12,397 |
|
|
4,090 |
|
Total assets |
$ |
380,101 |
|
|
$ |
361,100 |
|
Liabilities and
stockholders’ equity |
|
|
|
Current liabilities: |
|
|
|
Current portion of notes payable |
$ |
5,714 |
|
|
$ |
4,733 |
|
Revolving line of credit |
283 |
|
|
— |
|
Accounts payable |
5,694 |
|
|
3,662 |
|
Accrued compensation and benefits |
3,343 |
|
|
2,824 |
|
Other accrued liabilities |
3,981 |
|
|
2,234 |
|
Deferred revenue |
11,357 |
|
|
11,849 |
|
Total current liabilities before client fund
obligations |
30,372 |
|
|
25,302 |
|
Client fund obligations |
124,672 |
|
|
123,170 |
|
Total current liabilities |
155,044 |
|
|
148,472 |
|
Long-term liabilities: |
|
|
|
Deferred revenue |
782 |
|
|
876 |
|
Deferred tax liability |
1,782 |
|
|
1,566 |
|
Notes payable, net of current portion and debt issuance cost |
114,331 |
|
|
107,229 |
|
Other liabilities |
7,105 |
|
|
439 |
|
Total long-term liabilities |
124,000 |
|
|
110,110 |
|
Total liabilities |
279,044 |
|
|
258,582 |
|
Commitments |
|
|
|
Stockholders’ equity: |
|
|
|
Preferred stock, $.01 par value; 1,500 shares authorized; none
issued or outstanding |
— |
|
|
— |
|
Common stock, $.01 par value; 22,000 and 22,000 shares authorized;
15,789 and15,666 shares issued, 15,405 and 15,282 shares
outstanding at March 31, 2019 andDecember 31, 2018,
respectively |
158 |
|
|
157 |
|
Treasury stock at cost, 384 shares at March 31, 2019 and December
31, 2018 |
(5,017 |
) |
|
(5,017 |
) |
Additional paid-in capital |
393,092 |
|
|
391,927 |
|
Accumulated deficit |
(286,537 |
) |
|
(283,643 |
) |
Accumulated other comprehensive loss |
(639 |
) |
|
(906 |
) |
Total stockholders’ equity |
101,057 |
|
|
102,518 |
|
Total liabilities and stockholders’ equity |
$ |
380,101 |
|
|
$ |
361,100 |
|
ASURE SOFTWARE,
INC.CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE LOSS(Amounts in thousands, except share and
per share data)(Unaudited)
|
For the Three Months Ended March 31, |
|
2019 |
|
2018 |
Revenue: |
|
|
|
Recurring |
$ |
23,561 |
|
|
$ |
17,485 |
|
Professional services, hardware and other |
3,199 |
|
|
1,819 |
|
Total revenue |
26,760 |
|
|
19,304 |
|
Cost of
Sales |
8,698 |
|
|
5,557 |
|
Gross profit |
18,062 |
|
|
13,747 |
|
Operating
expenses: |
|
|
|
Selling, general and administrative |
12,766 |
|
|
10,709 |
|
Research and development |
2,351 |
|
|
1,423 |
|
Amortization of intangible assets |
2,781 |
|
|
1,597 |
|
Total operating expenses |
17,898 |
|
|
13,729 |
|
Income from
operations |
164 |
|
|
18 |
|
Other income
(expense) |
|
|
|
Interest expense and other |
(2,754 |
) |
|
(1,760 |
) |
Total other expense, net |
(2,754 |
) |
|
(1,760 |
) |
Loss before income
taxes |
(2,590 |
) |
|
(1,742 |
) |
Income tax expense |
304 |
|
|
183 |
|
Net loss |
(2,894 |
) |
|
$ |
(1,925 |
) |
Other comprehensive
income: |
|
|
|
Unrealized loss on marketable securities |
(52 |
) |
|
— |
|
Foreign currency translation gain |
319 |
|
|
3 |
|
Comprehensive
loss |
$ |
(2,627 |
) |
|
$ |
(1,922 |
) |
Basic and diluted net
loss per share |
|
|
|
Basic |
$ |
(0.19 |
) |
|
$ |
(0.15 |
) |
Diluted |
$ |
(0.19 |
) |
|
$ |
(0.15 |
) |
Weighted average basic
and diluted shares |
|
|
|
Basic |
15,405,000 |
|
|
12,583,000 |
|
Diluted |
15,405,000 |
|
|
12,583,000 |
|
ASURE SOFTWARE,
INC. CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS(Amounts in thousands)(Unaudited)
|
For the Three Months Ended March 31, |
|
2019 |
|
2018 |
Cash flows from
operating activities: |
|
|
|
Net loss |
$ |
(2,894 |
) |
|
$ |
(1,925 |
) |
Adjustments to reconcile net loss to net cash provided by (used in)
operations: |
|
|
|
Depreciation and amortization |
3,993 |
|
|
2,018 |
|
Amortization of debt financing costs and discount |
419 |
|
|
246 |
|
Provision for doubtful accounts |
(318 |
) |
|
76 |
|
Provision for (recovery of) deferred income taxes |
216 |
|
|
214 |
|
Share-based compensation |
611 |
|
|
194 |
|
Loss on disposals of fixed assets |
6 |
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
1,676 |
|
|
(535 |
) |
Inventory |
(925 |
) |
|
(229 |
) |
Prepaid expenses and other assets |
(580 |
) |
|
(2,182 |
) |
Accounts payable |
2,052 |
|
|
666 |
|
Accrued expenses and other long-term obligations |
614 |
|
|
1,826 |
|
Deferred revenue |
(623 |
) |
|
(1,265 |
) |
Net cash provided by (used in) operating
activities |
4,247 |
|
|
(896 |
) |
Cash flows from
investing activities: |
|
|
|
Acquisitions net of cash acquired |
(7,495 |
) |
|
(37,253 |
) |
Purchases of property and equipment |
(926 |
) |
|
(566 |
) |
Software capitalization costs |
(1,027 |
) |
|
(828 |
) |
Net change in funds held for clients |
12,761 |
|
|
576 |
|
Net cash provided by (used in) investing
activities |
3,313 |
|
|
(38,071 |
) |
Cash flows from
financing activities: |
|
|
|
Proceeds from notes payable |
8,000 |
|
|
36,750 |
|
Payments on notes payable |
(687 |
) |
|
— |
|
Proceeds from revolving line of credit |
283 |
|
|
2,379 |
|
Debt financing fees |
(1,102 |
) |
|
(1,577 |
) |
Payments on capital leases |
(34 |
) |
|
— |
|
Net change in client fund obligations |
(12,862 |
) |
|
(576 |
) |
Net cash provided by (used in) financing
activities |
(6,402 |
) |
|
36,976 |
|
Effect of foreign
exchange rates |
(11 |
) |
|
7 |
|
Net increase
(decrease) in cash and cash equivalents |
1,147 |
|
|
(1,984 |
) |
Cash and cash
equivalents at beginning of period |
15,444 |
|
|
27,792 |
|
Cash and cash
equivalents at end of period |
$ |
16,591 |
|
|
$ |
25,808 |
|
Supplemental
information: |
|
|
|
Cash paid for: |
|
|
|
Interest |
$ |
2,304 |
|
|
$ |
1,529 |
|
Income taxes |
— |
|
|
— |
|
Non-cash Investing and
Financing Activities: |
|
|
|
Subordinated notes payable –acquisitions |
$ |
2,000 |
|
|
$ |
3,942 |
|
Equity issued in connection with acquisitions |
555 |
|
|
1,125 |
|
Reconciliation of GAAP to
Non-GAAP
(In thousands except per share
data)
|
1Q17 |
|
2Q17 |
|
3Q17 |
|
4Q17 |
|
1Q18 |
|
2Q18 |
|
3Q18* |
|
4Q18* |
|
1Q19 |
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring |
$ |
8,769 |
|
|
$ |
9,991 |
|
|
$ |
12,255 |
|
|
$ |
12,704 |
|
|
$ |
17,485 |
|
|
$ |
17,749 |
|
|
$ |
19,561 |
|
|
$ |
19,397 |
|
|
$ |
23,561 |
|
Professional Services, Hardware and Other |
1,958 |
|
|
2,889 |
|
|
3,272 |
|
|
2,604 |
|
|
1,819 |
|
|
4,018 |
|
|
3,897 |
|
|
5,026 |
|
|
3,199 |
|
Total Revenues |
$ |
10,727 |
|
|
$ |
12,880 |
|
|
$ |
15,527 |
|
|
$ |
15,308 |
|
|
$ |
19,304 |
|
|
$ |
21,767 |
|
|
$ |
23,458 |
|
|
$ |
24,423 |
|
|
$ |
26,760 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q17 |
|
2Q17 |
|
3Q17 |
|
4Q17 |
|
1Q18 |
|
2Q18 |
|
3Q18 |
|
4Q18 |
|
1Q19 |
Reconciliation from GAAP gross profit to
non-GAAP gross profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Gross profit |
$ |
8,289 |
|
|
$ |
10,054 |
|
|
$ |
12,131 |
|
|
$ |
11,349 |
|
|
$ |
13,747 |
|
|
$ |
14,547 |
|
|
$ |
14,987 |
|
|
$ |
14,841 |
|
|
$ |
18,062 |
|
Stock compensation |
2 |
|
|
4 |
|
|
4 |
|
|
— |
|
|
4 |
|
|
4 |
|
|
12 |
|
|
12 |
|
|
15 |
|
Amortization |
106 |
|
|
106 |
|
|
106 |
|
|
134 |
|
|
297 |
|
|
486 |
|
|
437 |
|
|
437 |
|
|
437 |
|
One Time Inventory Adjustment |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
498 |
|
|
18 |
|
|
— |
|
One Time Travel Expense Adjustment |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
54 |
|
|
— |
|
One Time Product Royalties |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
81 |
|
|
189 |
|
Non-GAAP gross profit |
$ |
8,397 |
|
|
$ |
10,164 |
|
|
$ |
12,241 |
|
|
$ |
11,483 |
|
|
$ |
14,048 |
|
|
$ |
15,037 |
|
|
$ |
15,934 |
|
|
$ |
15,443 |
|
|
$ |
18,703 |
|
Non-GAAP gross margin |
78.3 |
% |
|
78.9 |
% |
|
78.8 |
% |
|
75.0 |
% |
|
72.8 |
% |
|
69.1 |
% |
|
67.9 |
% |
|
63.2 |
% |
|
69.9 |
% |
|
1Q17 |
|
2Q17 |
|
3Q17 |
|
4Q17 |
|
1Q18 |
|
2Q18 |
|
3Q18 |
|
4Q18 |
|
1Q19 |
Reconciliation from net income to
non-GAAPEBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net income (loss) |
$ |
(1,059 |
) |
|
$ |
(1,837 |
) |
|
$ |
(1,281 |
) |
|
$ |
(1,545 |
) |
|
$ |
(1,925 |
) |
|
$ |
(3,768 |
) |
|
$ |
(3,584 |
) |
|
$ |
1,729 |
|
|
$ |
(2,894 |
) |
Stock compensation |
54 |
|
|
171 |
|
|
139 |
|
|
230 |
|
|
194 |
|
|
329 |
|
|
363 |
|
|
800 |
|
|
611 |
|
Amortization |
953 |
|
|
1,148 |
|
|
1,449 |
|
|
1,380 |
|
|
1,895 |
|
|
2,481 |
|
|
2,884 |
|
|
3,090 |
|
|
3,218 |
|
Acquisition costs and other one-time expenses |
850 |
|
|
1,233 |
|
|
1,583 |
|
|
2,073 |
|
|
1,308 |
|
|
2,346 |
|
|
2,861 |
|
|
3,935 |
|
|
2,103 |
|
Taxes based on a 0% tax rate |
142 |
|
|
141 |
|
|
85 |
|
|
(272 |
) |
|
184 |
|
|
408 |
|
|
(303 |
) |
|
(7,518 |
) |
|
304 |
|
Interest Expense One-Time Credit |
— |
|
|
— |
|
|
— |
|
|
(259 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Depreciation |
227 |
|
|
224 |
|
|
342 |
|
|
337 |
|
|
370 |
|
|
361 |
|
|
794 |
|
|
1,091 |
|
|
766 |
|
Interest Expense & Other , Net |
547 |
|
|
1,088 |
|
|
1,643 |
|
|
1,347 |
|
|
1,760 |
|
|
2,722 |
|
|
2,350 |
|
|
2,738 |
|
|
2,754 |
|
Non-GAAP EBITDA |
$ |
1,714 |
|
|
$ |
2,168 |
|
|
$ |
3,960 |
|
|
$ |
3,291 |
|
|
$ |
3,786 |
|
|
$ |
4,879 |
|
|
$ |
5,365 |
|
|
$ |
5,865 |
|
|
$ |
6,862 |
|
Non-GAAP EBITDA margin |
16.0 |
% |
|
16.8 |
% |
|
25.5 |
% |
|
21.5 |
% |
|
19.6 |
% |
|
22.4 |
% |
|
22.9 |
% |
|
24.0 |
% |
|
25.6 |
% |
|
1Q17 |
|
2Q17 |
|
3Q17 |
|
4Q17 |
|
1Q18 |
|
2Q18 |
|
3Q18 |
|
4Q18 |
|
1Q19 |
Reconciliation from GAAP net income (loss) to
non-GAAP net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net income (loss) |
$ |
(1,059 |
) |
|
$ |
(1,837 |
) |
|
$ |
(1,281 |
) |
|
$ |
(1,545 |
) |
|
$ |
(1,925 |
) |
|
$ |
(3,768 |
) |
|
$ |
(3,584 |
) |
|
$ |
1,729 |
|
|
$ |
(2,894 |
) |
One-time depreciation adjustment |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
188 |
|
|
— |
|
Stock compensation |
54 |
|
|
171 |
|
|
139 |
|
|
230 |
|
|
194 |
|
|
329 |
|
|
363 |
|
|
800 |
|
|
611 |
|
Amortization |
953 |
|
|
1,148 |
|
|
1,449 |
|
|
1,380 |
|
|
1,895 |
|
|
2,481 |
|
|
2,884 |
|
|
3,090 |
|
|
3,218 |
|
Acquisition costs and other one-time expenses |
850 |
|
|
1,233 |
|
|
1,583 |
|
|
2,073 |
|
|
1,308 |
|
|
2,346 |
|
|
2,861 |
|
|
3,935 |
|
|
2,103 |
|
Taxes based on a 0% tax rate |
142 |
|
|
141 |
|
|
85 |
|
|
(272 |
) |
|
184 |
|
|
408 |
|
|
(303 |
) |
|
(7,518 |
) |
|
304 |
|
Interest Expense One-Time Credit |
— |
|
|
— |
|
|
— |
|
|
(259 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Non-GAAP net income |
$ |
940 |
|
|
$ |
856 |
|
|
$ |
1,975 |
|
|
$ |
1,607 |
|
|
$ |
1,656 |
|
|
$ |
1,796 |
|
|
$ |
2,221 |
|
|
$ |
2,224 |
|
|
$ |
3,342 |
|
|
1Q17 |
|
2Q17 |
|
3Q17 |
|
4Q17 |
|
1Q18 |
|
2Q18 |
|
3Q18 |
|
4Q18 |
|
1Q19 |
Calculation of non-GAAP net income per
share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income |
$ |
940 |
|
|
$ |
856 |
|
|
$ |
1,975 |
|
|
$ |
1,607 |
|
|
$ |
1,656 |
|
|
$ |
1,796 |
|
|
$ |
2,221 |
|
|
$ |
2,224 |
|
|
$ |
3,342 |
|
Pro forma diluted weighted-average shares |
8,839 |
|
|
10,212 |
|
|
12,599 |
|
|
12,659 |
|
|
12,846 |
|
|
13,259 |
|
|
15,489 |
|
|
15,337 |
|
|
15,436 |
|
Non-GAAP EPS |
$ |
0.11 |
|
|
$ |
0.08 |
|
|
$ |
0.16 |
|
|
$ |
0.13 |
|
|
$ |
0.13 |
|
|
$ |
0.14 |
|
|
$ |
0.14 |
|
|
$ |
0.15 |
|
|
$ |
0.22 |
|
* Adjusting for a revenue reclassification, 4Q18 recurring
revenue would have been $20,127 and professional services, hardware
and other would have been $4,296. In 3Q18 recurring revenue would
have been $19,194 and professional services, hardware and other
would have been $4,261.
Investor Relations Contact:Carolyn BassMarket
Street Partners415-445-3232cbass@marketstreetpartners.com
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