SAN MATEO, Calif., Feb. 10, 2015 /PRNewswire/ -- Marketo (NASDAQ:
MKTO), the leading provider of engagement marketing software and
solutions, today announced its fourth quarter and full year 2014
financial results.
Highlights:
- Annual 2014 revenue increased 56% year over year to
$150.0 million
- Fourth quarter revenue grew 50% over fourth quarter 2013 to
$42.3 million
- Deferred revenue increased 52% year over year to $62.9 million
- Subscription dollar retention rate rose to an average of
109%
- Customer count increased to 3,794
"Our strong fourth quarter performance capped a year of
impressive execution and growth. We were a prolific
technology innovator in 2014 with the introduction of our
Engagement Marketing Platform and three major new applications on
that platform. And we renewed our thought leadership agenda
for the industry as we ushered in the Era of Engagement Marketing,"
said Phil Fernandez, chairman and
chief executive officer of Marketo. "With the investments we
made in 2014 in our global operations including a highly successful
launch in Japan, our rapid
extension into B2C markets, and the depth of our enterprise sales
leadership team, we are well positioned to capitalize on the market
opportunity in 2015 and most importantly, to continue to provide
extraordinary value to our customers."
Results for the fourth quarter of 2014:
- Revenue: Revenue was $42.3
million, an increase of 50% over the fourth quarter of
2013.
- Deferred Revenue: Deferred revenue at December 31, 2014 was $62.9 million, up 18% from $53.2 million reported at September 30, 2014. This compares to $41.4 million at December
31, 2013.
- Adjusted Calculated Billings: Adjusted calculated
billings were $50.0 million, an
increase of 43% over $34.9 million in
the same period of the prior year.
- Net Loss: GAAP net loss, excluding redeemable
non-controlling interests, was $15.9
million, and net loss per common share, basic and diluted,
was $(0.39). Non-GAAP net loss was
$7.6 million, and non-GAAP net loss
per common share, basic and diluted, was $(0.18). A detailed reconciliation table titled
"Reconciliation of GAAP Measures to Non-GAAP Measures" is provided
at the end of this release.
- Cash Flow from Operations: For the quarter ended
December 31, 2014, cash used in
operating activities was $3.2 million
as compared to a use of $4.9 million
in the same period of the prior year.
- Total Cash and Cash Equivalents: As of December 31, 2014, total cash and cash
equivalents was $112.6 million.
Results for fiscal year 2014:
- Revenue: Revenue was $150.0
million, an increase of 56% over 2013.
- Net Loss: GAAP net loss, excluding redeemable
non-controlling interests, was $54.3
million, and net loss per common share, basic and diluted,
was $(1.35). Non-GAAP net loss was
$27.1 million, and non-GAAP net loss
per common share, basic and diluted, was $(0.67). A detailed reconciliation table titled
"Reconciliation of GAAP Measures to Non-GAAP Measures" is provided
at the end of this release.
- Cash Flow from Operations: Cash used in operating
activities was $14.0 million as
compared to a use of $12.4 million in
2013.
Outlook
As of February 10,
2015, Marketo is initiating revenue and EPS guidance for its
first quarter and full year 2015.
For the first quarter of 2015, Marketo expects to
report:
- Revenue in the range of $45 to $46
million
- GAAP net loss per share in the range of $(0.46) to $(0.48)
- Non-GAAP net loss per share in the range of $(0.20) to $(0.22)
For the full year 2015, Marketo expects to report:
- Revenue in the range of $204 to $206
million
- GAAP net loss per share in the range of $(2.01) to $(2.05)
- Non-GAAP net loss per share in the range of $(0.83) to $(0.87)
A reconciliation table titled "Reconciliation of GAAP Net Loss
to Non-GAAP Net Loss Per Share Targets" is provided at the end of
this release.
Conference Call Information
Marketo will host a
conference call and live webcast to discuss the financial results
at 2:00 p.m. Pacific Time, 5:00 p.m. Eastern Time, today,
Tuesday, February 10, 2015. The
conference call can be accessed by dialing (888) 329-8877 or
+1(719) 325-2308 (outside the U.S. and Canada). A live webcast will be
available at http://investors.marketo.com and via replay beginning
approximately two hours after the completion of the call. An
audio replay of the call will also be available by dialing (888)
203-1112 or +1(719) 457-0820 (outside the U.S. and Canada) and entering passcode 7895631#.
Use of Non-GAAP Financial Information
The company
reports non-GAAP financial measures, including gross margins,
operating margins, net loss, basic and diluted loss per share, and
adjusted billings in addition to, and not as a substitute for, or
superior to, financial measures calculated in accordance with
GAAP. Marketo provides financial statements that are prepared
in accordance with generally accepted accounting principles (GAAP).
To help understand Marketo's past financial performance and future
expectations, Marketo has supplemented its financial results that
it provides in accordance with GAAP with certain non-GAAP financial
measures. The method Marketo uses to produce non-GAAP financial
results is not computed according to GAAP and may differ from the
methods 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. Specifically, management is excluding
the following items from its non-GAAP historical and estimated net
loss and net loss per common share, basic and diluted:
- 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 Acquired Intangible Assets: 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, 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.
- Litigation Settlement: The company settled some litigation in
the fourth quarter of 2013 and views this as a non-recurring
expense.
- Integration Costs: The company views acquisition-related
integration costs, such as legal and audit services associated with
an acquired company, as items arising from pre-acquisition
activities that are non-recurring in nature.
The company encourages investors to carefully consider its
results under GAAP, as well as its supplemental non-GAAP
information and the reconciliation between these presentations, to
more fully understand its business. Reconciliations between GAAP
and non-GAAP results are presented in the tables of this
release.
Adjusted Calculated Billings is calculated as revenue plus the
change in total deferred revenue as presented on the balance sheet
adjusted for quarterly versus annual billing frequency and a change
in invoicing policy made in the fourth quarter of 2013. Management
believes adjusted calculated billings offers investors useful
supplemental information regarding the performance of our business,
and will help investors better understand the sales volumes and
performance of our business.
"Safe harbor" statement under the Private Securities
Litigation Reform Act of 1995
This press release contains
forward-looking statements. These forward-looking statements
include general statements about our opportunities for growth and
specific statements about our expected GAAP and non-GAAP financial
results for the first quarter and the full year of 2015, including
revenue, net loss, EPS, stock-based compensation expenses and
amortization of acquired intangible assets. 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 that could cause actual results to
differ from the results predicted 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, as appropriate, cash flow, and the continued growth and
ability to maintain deferred revenue and unbilled deferred revenue;
errors, interruptions or delays in the company's service or the
company's Web hosting; breaches of the company's security measures;
the financial impact of any previous and future acquisitions; the
nature of the company's business model; the company's ability to
continue to release, and gain customer acceptance of, new and
improved versions of the company's service; successful customer
deployment and utilization of the company's existing and future
services; changes in the company's sales cycle; competition;
relationships with platform providers; various financial aspects of
the company's subscription model; unexpected increases in attrition
or decreases in new business; the emerging markets in which the
company operates; unique aspects of entering or expanding in
international markets; 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; regulatory
developments; litigation related to intellectual property and other
matters, and any related claims, negotiations and settlements;
unanticipated changes in the company's effective tax rate;
fluctuations in the number of shares we have outstanding and the
price of such shares; foreign currency exchange rates; collection
of receivables; interest rates; factors affecting our deferred tax
assets and ability to value and utilize them; the risks and
expenses associated with the company's real estate and office
facilities space; and general developments in the economy,
financial markets, and credit markets.
Further information about 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 the company makes with the
Securities and Exchange Commission from time to time.
Marketo assumes no obligation and does not intend to update
these forward-looking statements, except as required by law.
About Marketo:
Marketo (NASDAQ: MKTO) provides the leading marketing software
and solutions designed to help marketers master the art and science
of digital marketing. Through a unique combination of
innovation and expertise, Marketo is focused solely on helping
marketers keep pace in an ever-changing digital world.
Spanning today's digital, social, mobile and offline channels,
Marketo's® Engagement Marketing Platform powers a set of
breakthrough applications to help marketers tackle all aspects of
digital marketing from the planning and orchestration of marketing
activities to the delivery of personalized interactions that can be
optimized in real-time. Marketo's applications are known for their
ease-of-use, and are complemented by the Marketing Nation®, a
thriving network of more than 400 third-party solutions through our
LaunchPoint ® ecosystem and over 50,000 marketers who share and
learn from each other to grow their collective marketing expertise.
The result for modern marketers is unprecedented agility and
superior results. Headquartered in San
Mateo, CA with offices in Europe, Australia and Japan, Marketo serves as a strategic marketing
partner to more than 3,750 large enterprises and fast-growing small
companies across a wide variety of industries. For more
information, visit
www.marketo.com.
Marketo, the Marketo logo, Marketing Nation and LaunchPoint
are trademarks of Marketo, Inc. All other trademarks are the
property of their respective owners.
|
MARKETO,
INC.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(In
thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
112,644
|
|
$
128,299
|
|
Accounts receivable,
net
|
|
37,867
|
|
26,946
|
|
Prepaid expenses and
other current assets
|
|
5,756
|
|
3,218
|
|
Total current
assets
|
|
156,267
|
|
158,463
|
|
Property and
equipment, net
|
|
16,832
|
|
13,856
|
|
Goodwill
|
|
29,201
|
|
25,941
|
|
Intangible assets,
net
|
|
7,076
|
|
7,095
|
|
Other
assets
|
|
1,035
|
|
484
|
|
Total
assets
|
|
$
210,411
|
|
$
205,839
|
|
|
|
|
|
|
LIABILITIES,
REDEEMABLE NON-CONTROLLING INTERESTS AND STOCKHOLDERS'
EQUITY
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
$
3,901
|
|
$
3,527
|
|
Accrued expenses and
other current liabilities
|
|
20,691
|
|
23,055
|
|
Deferred
revenue
|
|
62,945
|
|
41,356
|
|
Current portion of
credit facility
|
|
2,719
|
|
2,187
|
|
Total current
liabilities
|
|
90,256
|
|
70,125
|
|
Credit facility, net
of current portion
|
|
2,653
|
|
5,372
|
|
Other long-term
liabilities
|
|
3,526
|
|
1,900
|
|
Total
liabilities
|
|
96,435
|
|
77,397
|
|
|
|
|
|
|
Redeemable
non-controlling interests
|
|
800
|
|
-
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
Common
stock
|
|
4
|
|
4
|
|
Additional paid-in
capital
|
|
297,420
|
|
257,801
|
|
Accumulated other
comprehensive income (loss)
|
|
(350)
|
|
198
|
|
Accumulated
deficit
|
|
(183,898)
|
|
(129,561)
|
|
Total stockholders'
equity
|
|
113,176
|
|
128,442
|
|
Total liabilities,
redeemable non-controlling interests and stockholders'
equity
|
|
$
210,411
|
|
$
205,839
|
|
MARKETO,
INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(In thousands,
except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended December 31,
|
|
For the Year
Ended December 31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Subscription and
support
|
|
$ 37,003
|
|
$ 25,153
|
|
$ 131,060
|
|
$ 85,095
|
|
Professional services
and other
|
|
5,342
|
|
3,018
|
|
18,894
|
|
10,823
|
|
Total revenue
|
|
42,345
|
|
28,171
|
|
149,954
|
|
95,918
|
|
Cost of revenue
(1):
|
|
|
|
|
|
|
|
|
|
Subscription and
support
|
|
8,104
|
|
6,295
|
|
28,742
|
|
24,681
|
|
Professional services
and other
|
|
5,980
|
|
3,991
|
|
22,059
|
|
13,298
|
|
Total cost of revenue
|
|
14,084
|
|
10,286
|
|
50,801
|
|
37,979
|
|
Gross
profit:
|
|
|
|
|
|
|
|
|
|
Subscription and
support
|
|
28,899
|
|
18,858
|
|
102,318
|
|
60,414
|
|
Professional services
and other
|
|
(638)
|
|
(973)
|
|
(3,165)
|
|
(2,475)
|
|
Total gross profit
|
|
28,261
|
|
17,885
|
|
99,153
|
|
57,939
|
|
Operating expenses
(1):
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
8,327
|
|
6,402
|
|
30,337
|
|
23,321
|
|
Sales and
marketing
|
|
29,716
|
|
19,719
|
|
98,843
|
|
62,769
|
|
General and
administrative
|
|
7,066
|
|
6,996
|
|
25,583
|
|
18,655
|
|
Total operating expenses
|
|
45,109
|
|
33,117
|
|
154,763
|
|
104,745
|
|
Loss from
operations
|
|
(16,848)
|
|
(15,232)
|
|
(55,610)
|
|
(46,806)
|
|
Other income
(expense), net
|
|
120
|
|
(281)
|
|
178
|
|
(526)
|
|
Loss before provision
for income taxes
|
|
(16,728)
|
|
(15,513)
|
|
(55,432)
|
|
(47,332)
|
|
Provision (benefit)
for income taxes
|
|
(573)
|
|
(18)
|
|
(477)
|
|
28
|
|
Net loss
|
|
(16,155)
|
|
(15,495)
|
|
(54,955)
|
|
(47,360)
|
|
Net loss attributable
to redeemable non-controlling interests
|
|
242
|
|
-
|
|
618
|
|
-
|
|
Net loss attributable
to Marketo
|
|
$(15,913)
|
|
$ (15,495)
|
|
$ (54,337)
|
|
$ (47,360)
|
|
|
|
|
|
|
|
|
|
|
Net loss per share of
common stock, basic and diluted
|
|
$ (0.39)
|
|
$ (0.41)
|
|
$ (1.35)
|
|
$ (1.92)
|
|
Shares used in
computing net loss per share of common stock,
basic and diluted
|
|
41,059
|
|
38,257
|
|
40,385
|
|
24,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts include
stock-based compensation expense as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended December 31,
|
|
For the Year
Ended December 31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
Cost of subscription
and support revenue
|
|
$ 424
|
|
$ 179
|
|
$ 1,626
|
|
$ 496
|
|
Cost of professional
services and other revenue
|
|
607
|
|
245
|
|
2,363
|
|
690
|
|
Research and
development
|
|
1,737
|
|
479
|
|
5,353
|
|
2,084
|
|
Sales and
marketing
|
|
2,841
|
|
647
|
|
8,860
|
|
2,293
|
|
General and
administrative
|
|
2,078
|
|
885
|
|
6,918
|
|
2,512
|
|
Total stock-based
compensation expense
|
|
$ 7,687
|
|
$ 2,435
|
|
$ 25,120
|
|
$ 8,075
|
|
MARKETO,
INC.
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
(In
thousands)
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
For the Year
Ended
December 31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
Net loss:
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to Marketo
|
|
$ (15,913)
|
|
$ (15,495)
|
|
$ (54,337)
|
|
$ (47,360)
|
|
Net loss attributable
to redeemable non-controlling interests
|
|
(242)
|
|
-
|
|
(618)
|
|
-
|
|
Net
loss
|
|
(16,155)
|
|
(15,495)
|
|
(54,955)
|
|
(47,360)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
2,699
|
|
1,584
|
|
9,475
|
|
4,621
|
|
Stock-based
compensation expense
|
|
7,687
|
|
2,435
|
|
25,120
|
|
8,075
|
|
Deferred income
taxes
|
|
(625)
|
|
(65)
|
|
(672)
|
|
(65)
|
|
Loss on sale of
assets
|
|
1
|
|
-
|
|
1
|
|
-
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
(11,884)
|
|
(13,461)
|
|
(11,362)
|
|
(12,702)
|
|
Prepaid expenses and
other current assets
|
|
540
|
|
1,390
|
|
(1,388)
|
|
(698)
|
|
Other
assets
|
|
(75)
|
|
5
|
|
(709)
|
|
(46)
|
|
Accounts
payable
|
|
(436)
|
|
993
|
|
(342)
|
|
2,050
|
|
Accrued expenses and
other current liabilities
|
|
5,033
|
|
7,078
|
|
(1,599)
|
|
13,177
|
|
Deferred
revenue
|
|
10,042
|
|
10,592
|
|
22,371
|
|
20,438
|
|
Other
liabilities
|
|
(12)
|
|
(3)
|
|
37
|
|
141
|
|
Net cash used in
operating activities
|
|
(3,185)
|
|
(4,947)
|
|
(14,023)
|
|
(12,369)
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
(2,136)
|
|
(3,167)
|
|
(8,378)
|
|
(11,401)
|
|
Capitalized software
development
|
|
(182)
|
|
(114)
|
|
(645)
|
|
(459)
|
|
Cash provided by
(used in) acquisition, net of cash acquired
|
|
326
|
|
(6,216)
|
|
326
|
|
(6,216)
|
|
Net cash used in
investing activities
|
|
(1,992)
|
|
(9,497)
|
|
(8,697)
|
|
(18,076)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
Proceeds from initial
public offering, net of underwriting discount
|
|
-
|
|
-
|
|
-
|
|
80,506
|
|
Proceeds from
follow-on offering, net of underwriting discount
|
|
-
|
|
-
|
|
-
|
|
22,519
|
|
Proceeds from private
placement
|
|
-
|
|
-
|
|
-
|
|
6,500
|
|
Proceeds from
issuance of common stock upon exercise of stock
options
|
|
826
|
|
2,507
|
|
5,540
|
|
4,985
|
|
Proceeds from
issuance of common stock issued under employee stock purchase
plan
|
|
-
|
|
-
|
|
6,143
|
|
-
|
|
Investment from
redeemable non-controlling interests
|
|
-
|
|
-
|
|
1,953
|
|
-
|
|
Repurchase of
unvested common stock from terminated employees
|
|
(1)
|
|
(2)
|
|
(49)
|
|
(22)
|
|
Withholding taxes
remitted for the net share settlement of equity awards
|
|
(518)
|
|
-
|
|
(2,638)
|
|
(124)
|
|
Proceeds from
issuance of debt
|
|
-
|
|
-
|
|
-
|
|
4,500
|
|
Repayment of
debt
|
|
(663)
|
|
(290)
|
|
(2,187)
|
|
(582)
|
|
Payment of deferred
initial public offering and follow-on offering
costs
|
|
-
|
|
(35)
|
|
(104)
|
|
(35)
|
|
Payment incurred for
common stock registration related to acquisition
|
|
-
|
|
(437)
|
|
(319)
|
|
(3,820)
|
|
Net cash provided by
(used in) financing activities
|
|
(356)
|
|
1,743
|
|
8,339
|
|
114,427
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
|
(617)
|
|
80
|
|
(1,274)
|
|
70
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
(6,150)
|
|
(12,621)
|
|
(15,655)
|
|
84,052
|
|
Cash and cash
equivalents — beginning of period
|
|
118,794
|
|
140,920
|
|
128,299
|
|
44,247
|
|
Cash and cash
equivalents —end of period
|
|
$ 112,644
|
|
$ 128,299
|
|
$ 112,644
|
|
$ 128,299
|
|
MARKETO,
INC.
|
|
RECONCILIATION OF
GAAP MEASURES TO NON-GAAP MEASURES
|
|
(In thousands, except
per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To supplement our
condensed consolidated financial statements presented on a GAAP
basis, Marketo uses non-GAAP measures of operating loss, net loss
and net loss per share, which are adjusted to exclude certain
costs, expenses, gains and losses we believe appropriate to enhance
an overall understanding of our past financial performance and also
our prospects for the future. These adjustments to our current
period GAAP results are made with the intent of providing both
management and investors a more complete understanding of Marketo's
underlying operational results and trends and our marketplace
performance. In addition, these adjusted non-GAAP results are among
the information management uses as a basis for our planning and
forecasting of future periods. The presentation of this additional
information is not meant to be considered in isolation or as a
substitute for results prepared in accordance with generally
accepted accounting principles in the United States of
America.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30, 2014
|
|
Three Months
Ended
December 31, 2014
|
|
Three Months
Ended
December 31, 2013
|
|
For the Year
Ended
December 31, 2014
|
|
For the Year
Ended
December 31, 2013
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Subscription and
support
|
|
$
34,210
|
|
$
37,003
|
|
$
25,153
|
|
$
131,060
|
|
$
85,095
|
|
Professional services
and other
|
|
5,077
|
|
5,342
|
|
3,018
|
|
18,894
|
|
10,823
|
|
Total
Revenue
|
|
$
39,287
|
|
$
42,345
|
|
$
28,171
|
|
$
149,954
|
|
$
95,918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Subscription and
support
|
|
$
7,527
|
|
$
8,104
|
|
$
6,295
|
|
$
28,742
|
|
$
24,681
|
|
Stock-based compensation
|
|
(399)
|
|
(424)
|
|
(179)
|
|
(1,626)
|
|
(496)
|
|
Amortization of acquired intangible assets
|
|
(286)
|
|
(300)
|
|
(95)
|
|
(1,156)
|
|
(267)
|
|
Non-GAAP subscription
and support
|
|
$
6,842
|
|
$
7,380
|
|
$
6,021
|
|
$
25,960
|
|
$
23,918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Professional
services and other
|
|
$
5,698
|
|
$
5,980
|
|
$
3,991
|
|
$
22,059
|
|
$
13,298
|
|
Stock-based compensation
|
|
(699)
|
|
(607)
|
|
(245)
|
|
(2,363)
|
|
(690)
|
|
Amortization of acquired intangible assets
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Non-GAAP professional
services and other
|
|
$
4,999
|
|
$
5,373
|
|
$
3,746
|
|
$
19,696
|
|
$
12,608
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit and
gross margin reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP subscription
and support gross profit
|
|
$
27,368
|
|
$
29,623
|
|
$
19,132
|
|
$
105,100
|
|
$
61,177
|
|
Non-GAAP professional
services and other gross profit
|
|
78
|
|
(31)
|
|
(728)
|
|
(802)
|
|
(1,785)
|
|
Non-GAAP gross
profit
|
|
$
27,446
|
|
$
29,592
|
|
$
18,404
|
|
$
104,298
|
|
$
59,392
|
|
Non-GAAP
subscription and support gross margin
|
|
80.0%
|
|
80.1%
|
|
76.1%
|
|
80.2%
|
|
71.9%
|
|
Non-GAAP
professional services and other gross margin
|
|
1.5%
|
|
-0.6%
|
|
-24.1%
|
|
-4.2%
|
|
-16.5%
|
|
Non-GAAP gross
margin
|
|
69.9%
|
|
69.9%
|
|
65.3%
|
|
69.6%
|
|
61.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Research and
development
|
|
$
7,681
|
|
$
8,327
|
|
$
6,402
|
|
$
30,337
|
|
$
23,321
|
|
Stock-based compensation
|
|
(1,364)
|
|
(1,737)
|
|
(479)
|
|
(5,353)
|
|
(2,084)
|
|
Amortization of acquired intangible assets
|
|
-
|
|
(6)
|
|
-
|
|
(6)
|
|
-
|
|
Non-GAAP research and
development
|
|
$
6,317
|
|
$
6,584
|
|
$
5,923
|
|
$
24,978
|
|
$
21,237
|
|
As a % of total
revenues, non-GAAP
|
|
16.1%
|
|
15.5%
|
|
21.0%
|
|
16.7%
|
|
22.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Sales and
marketing
|
|
$
24,973
|
|
$
29,716
|
|
$
19,719
|
|
$
98,843
|
|
$
62,769
|
|
Stock-based compensation
|
|
(2,145)
|
|
(2,841)
|
|
(647)
|
|
(8,860)
|
|
(2,293)
|
|
Amortization of acquired intangible assets
|
|
(136)
|
|
(137)
|
|
(52)
|
|
(566)
|
|
(181)
|
|
Non-GAAP sales and
marketing
|
|
$
22,692
|
|
$
26,738
|
|
$
19,020
|
|
$
89,417
|
|
$
60,295
|
|
As a % of total
revenues, non-GAAP
|
|
57.8%
|
|
63.1%
|
|
67.5%
|
|
59.6%
|
|
62.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP General and
administrative
|
|
$
6,594
|
|
$
7,066
|
|
$
6,996
|
|
$
25,583
|
|
$
18,655
|
|
Stock-based compensation
|
|
(1,908)
|
|
(2,078)
|
|
(885)
|
|
(6,918)
|
|
(2,512)
|
|
Amortization of acquired intangible assets
|
|
(46)
|
|
(46)
|
|
(29)
|
|
(184)
|
|
(103)
|
|
Litigation settlement
|
|
-
|
|
-
|
|
(950)
|
|
-
|
|
(950)
|
|
Acquisition related costs
|
|
-
|
|
(185)
|
|
(734)
|
|
(185)
|
|
(734)
|
|
Non-GAAP general and
administrative
|
|
$
4,640
|
|
$
4,757
|
|
$
4,398
|
|
$
18,296
|
|
$
14,356
|
|
As a % of total
revenues, non-GAAP
|
|
11.8%
|
|
11.2%
|
|
15.6%
|
|
12.2%
|
|
15.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP loss from
operations
|
|
$
(13,186)
|
|
$
(16,848)
|
|
$
(15,232)
|
|
$
(55,610)
|
|
$
(46,806)
|
|
Stock-based compensation
|
|
6,515
|
|
7,687
|
|
2,435
|
|
25,120
|
|
8,075
|
|
Amortization of acquired intangible assets
|
|
468
|
|
489
|
|
176
|
|
1,912
|
|
551
|
|
Litigation settlement
|
|
-
|
|
-
|
|
950
|
|
-
|
|
950
|
|
Acquisition related costs
|
|
-
|
|
185
|
|
734
|
|
185
|
|
734
|
|
Non-GAAP loss from
operations
|
|
$
(6,203)
|
|
$
(8,487)
|
|
$
(10,937)
|
|
$
(28,393)
|
|
$
(36,496)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net loss
attributable to Marketo
|
|
$
(12,803)
|
|
$
(15,913)
|
|
$
(15,495)
|
|
$
(54,337)
|
|
$
(47,360)
|
|
Stock-based compensation
|
|
6,515
|
|
7,687
|
|
2,435
|
|
25,120
|
|
8,075
|
|
Amortization of acquired intangible assets
|
|
468
|
|
489
|
|
176
|
|
1,912
|
|
551
|
|
Litigation settlement
|
|
-
|
|
-
|
|
950
|
|
-
|
|
950
|
|
Acquisition related costs
|
|
-
|
|
185
|
|
734
|
|
185
|
|
734
|
|
Non-GAAP Net loss
attributable to Marketo
|
|
$
(5,820)
|
|
$
(7,552)
|
|
$
(11,200)
|
|
$
(27,120)
|
|
$
(37,050)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
$
(0.31)
|
|
$
(0.39)
|
|
$
(0.41)
|
|
$
(1.35)
|
|
$
(1.92)
|
|
Non-GAAP
|
|
$
(0.14)
|
|
$
(0.18)
|
|
$
(0.29)
|
|
$
(0.67)
|
|
$
(1.50)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used to
compute basic and diluted GAAP and
Non-GAAP net loss per share
|
|
40,668
|
|
41,059
|
|
38,257
|
|
40,385
|
|
24,709
|
|
MARKETO,
INC.
|
|
RECONCILIATION OF
GAAP NET LOSS TO NON-GAAP NET LOSS PER SHARE TARGETS
|
|
(In thousands, except
per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ending
|
|
Twelve Months
Ending
|
|
|
March 31,
2015
|
|
December 31,
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss per
diluted share range
|
|
$ (0.46)
|
-
|
$ (0.48)
|
|
$ (2.01)
|
-
|
$ (2.05)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
0.25
|
|
0.25
|
|
1.12
|
|
1.12
|
|
Amortization of acquired intangibles per share
|
|
0.01
|
|
0.01
|
|
0.06
|
|
0.06
|
|
Non-GAAP net loss
per diluted share range
|
|
$ (0.20)
|
-
|
$ (0.22)
|
|
$ (0.83)
|
-
|
$ (0.87)
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Shares Outstanding
|
|
41,600
|
|
41,600
|
|
42,300
|
|
42,300
|
|
The GAAP and non-GAAP
net income per share targets provided below and elsewhere in this
press release are estimates. Marketo's future performance involves
risks and uncertainties and the Company's actual results could
differ materially from such estimates. Some of the factors that
could affect the Company's operating results are set forth under
the caption " 'Safe harbor' statement under the Private Securities
Litigation Reform Act of 1995" in this release.
|
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SOURCE Marketo