SAN MATEO, Calif., Feb. 9, 2016 /PRNewswire/ -- Marketo, Inc.
(NASDAQ: MKTO), the leading provider of engagement marketing
software and solutions, today announced its fourth quarter and full
year 2015 financial results.
2015 Highlights:
- Annual revenue increased 40 percent year over year to
$209.9 million
- Deferred revenue increased 46 percent year over year to
$92.0 million
- Annual calculated billings increased 39 percent year over year
to $238.9 million
- Generated full year cash flow from operations of $2.3 million
"Our solid fourth quarter performance capped a year of healthy
growth, including improved operating leverage and positive cash
flow from operations for the full year," said Phil Fernandez, chairman and CEO of Marketo. "I
am optimistic about our business and believe we are well positioned
to capitalize on the market opportunity in 2016. As a recognized
leader in the industry, with a highly differentiated position in
the market, we continue to deliver breakthrough innovation and make
our customers successful."
Results for the fourth quarter of 2015:
- Revenue: Revenue was $58.3
million, an increase of 38 percent over the same period of
the prior year.
- Deferred Revenue: Deferred revenue at December 31, 2015 was $92.0 million, up 12 percent from $82.1 million at September
30, 2015. This compares to $62.9
million at December 31,
2014.
- Calculated Billings: Calculated billings were
$68.1 million, an increase of 31
percent over $52.1 million in the
same period of the prior year.
- Net Loss: GAAP net loss attributable to Marketo was
$17.2 million, and net loss per
common share, basic and diluted, was $(0.40). Non-GAAP net loss was $5.5 million, and non-GAAP net loss per common
share, basic and diluted, was $(0.13).
- Cash Flow: Cash used in operating activities was
$1.5 million as compared to cash used
in operating activities of $3.2
million in the same period of the prior year.
- Total Cash and Cash Equivalents: As of December 31, 2015, total cash and cash
equivalents was $107.2 million.
Results for the full year 2015:
- Revenue: Revenue was $209.9
million, an increase of 40 percent over the prior year.
- Calculated Billings: Calculated billings were
$238.9 million, an increase of 39
percent over $171.5 million in the
prior year.
- Net Loss: GAAP net loss attributable to Marketo was
$71.5 million, and net loss per
common share, basic and diluted, was $(1.68). Non-GAAP net loss was $25.9 million, and non-GAAP net loss per common
share, basic and diluted, was $(0.61).
- Cash Flow: Cash provided by operating activities was
$2.3 million as compared to cash used
in operating activities of $14.0
million in the prior year.
Outlook
As of February 9,
2016, Marketo is initiating revenue and EPS guidance for its
first quarter and full year 2016.
For the first quarter of 2016, Marketo expects to
report:
- Revenue in the range of $61 to $62
million
- GAAP net loss per share in the range of $(0.43) to $(0.45)
- Non-GAAP net loss per share in the range of $(0.16) to $(0.18)
For the full year 2016, Marketo expects to report:
- Revenue in the range of $267 to $277
million
- GAAP net loss per share in the range of $(1.57) to $(1.63)
- Non-GAAP net loss per share in the range of $(0.47) to $(0.53)
Reconciliations of the non-GAAP financial measures included in
this release to their nearest GAAP equivalents are provided at the
end of this release.
Conference Call Information
Marketo will host a
conference call and live webcast to discuss financial results at
5:00 p.m. ET/2:00 p.m. PT, today, Tuesday, February 9, 2016. The conference
call can be accessed by dialing (888) 632-3384, or +1 (785)
424-1675 (outside the U.S. and Canada). A live webcast will be
available at http://investors.marketo.com. 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 162403#.
Use of Non-GAAP Financial Information
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 results, 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.
- Adjustment to the value of redeemable non-controlling interest
to the redemption amount is excluded as the company believes it may
not be indicative of future operating results and that investors
benefit from an understanding of the company's operating results
without giving effect to this adjustment.
Additionally, the company believes the following supplemental
non-GAAP financial information is useful to investors and others in
assessing its operating performance. A calculation of the
supplemental non-GAAP financial information is provided in the
table titled 'Non-GAAP Supplemental financial information.'
- Calculated billings is calculated as revenue plus the change in
total deferred revenue as presented on the balance sheet.
- Free cash flow is calculated as cash flow provided by (used in)
operations less the purchase of property and equipment and
capitalized software development costs presented on the statement
of cash flows.
Marketo believes calculated billings offers investors useful
supplemental information regarding the performance of its business,
and will help investors better understand the sales volumes and
performance of its business. The free cash flow metric is useful as
it provides investors an enhanced view of the company's operational
performance and the cash available to fund on-going operations. The
presentation of non-GAAP free cash flow is not meant to be
considered in isolation or as an alternative to net income as an
indicator of our performance, or as an alternative to cash flows
from operating activities as a measure of liquidity.
The company encourages investors to carefully consider its
results under GAAP, as well as its supplemental non-GAAP
information and the related reconciliations, to more fully
understand its business. Reconciliations of these GAAP and non-GAAP
financial measures are presented in the tables at the end of this
release.
"Safe harbor" statement under the Private Securities
Litigation Reform Act of 1995
This press
release contains forward-looking statements. Forward-looking
statements include all statements that are not historical facts and
can be identified by terms such as "expects," "anticipates,"
"believes," "could," "seeks," "estimates," "intends," "may,"
"plans," "potential," "predicts," "projects," "should," "will,"
"would" or similar expressions and the negatives of those terms.
Examples of forward-looking statements include, but are not limited
to, statements about our opportunities for growth and our GAAP and
non-GAAP financial guidance for the first quarter and the full year
of 2016, including revenue, net loss, EPS, stock-based compensation
expenses, amortization of acquired intangible assets and
adjustments to the value of redeemable non-controlling interest to
the redemption amount. 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, our
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 our financial and
operating results; our rate of growth and anticipated revenue run
rate, including our ability to convert deferred revenue into
revenue and, as appropriate, cash flow, and the continued growth
and ability to maintain deferred revenue; errors, interruptions or
delays in our services or Web hosting; breaches of our security
measures; competition and competitive pressures, including
discounting by our competitors; the nature of our business model;
our ability to continue to release, and gain customer acceptance
of, new and improved versions of our services; successful customer
deployment and utilization of our existing and future services;
changes in our sales cycle; the financial impact of any previous
and future acquisitions; relationships with platform providers;
various financial aspects of our subscription model; unexpected
increases in attrition or decreases in new business; the emerging
markets in which we operate; unique aspects of entering or
expanding in international markets; our ability to hire, retain and
motivate employees and manage our growth; changes in our customer
base; technological developments; regulatory developments;
litigation related to intellectual property and other matters, and
any related claims, negotiations and settlements; unanticipated
changes in our 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 our real
estate and office facilities space; and general developments in the
economy, financial markets, and credit markets.
Further information about potential factors that could affect
our financial results is included in public reports we file with
the Securities and Exchange Commission, including, but not limited
to, the "Risk Factors" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" sections of our
Forms 10-K and 10-Q, and the Forms 8-K and other documents we file
from time to time.
Any forward-looking statement made by us in this press release
speaks only as of the date on which it is made. Factors or events
that could cause our actual results to differ may emerge from time
to time, and it is not possible for us to predict all of them. We
assume no obligation and do not intend to publicly update these
forward-looking statements, whether as a result of new information,
future developments, or otherwise, 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 marketing automation and marketing management
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 550 third-party solutions through our
LaunchPoint® ecosystem and over 60,000 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 Atlanta, Portland,
Ore., Europe, Australia, and Japan, Marketo serves as a strategic marketing
partner to more than 4,500 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,
|
|
|
2015
|
|
2014
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
107,218
|
|
$
112,644
|
Accounts receivable,
net
|
|
50,678
|
|
37,867
|
Prepaid expenses and
other current assets
|
|
9,073
|
|
5,756
|
Total current
assets
|
|
166,969
|
|
156,267
|
Property and
equipment, net
|
|
21,323
|
|
16,832
|
Goodwill
|
|
29,201
|
|
29,201
|
Intangible assets,
net
|
|
5,455
|
|
7,076
|
Other
assets
|
|
2,130
|
|
1,035
|
Total
assets
|
|
$
225,078
|
|
$
210,411
|
|
|
|
|
|
LIABILITIES,
REDEEMABLE NON-CONTROLLING INTERESTS AND STOCKHOLDERS'
EQUITY
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
4,265
|
|
$
3,901
|
Accrued expenses and
other current liabilities
|
|
25,706
|
|
20,691
|
Deferred
revenue
|
|
91,735
|
|
62,945
|
Current portion of
credit facility
|
|
2,174
|
|
2,719
|
Total current
liabilities
|
|
123,880
|
|
90,256
|
Credit facility, net
of current portion
|
|
478
|
|
2,653
|
Deferred revenue,
long-term
|
|
230
|
|
-
|
Other
liabilities
|
|
2,722
|
|
3,526
|
Total
liabilities
|
|
127,310
|
|
96,435
|
|
|
|
|
|
Redeemable
non-controlling interests
|
|
4,643
|
|
800
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common
stock
|
|
4
|
|
4
|
Additional paid-in
capital
|
|
344,727
|
|
297,420
|
Accumulated other
comprehensive loss
|
|
(274)
|
|
(350)
|
Accumulated
deficit
|
|
(251,332)
|
|
(183,898)
|
Total stockholders'
equity
|
|
93,125
|
|
113,176
|
Total liabilities,
redeemable non-controlling interests and stockholders'
equity
|
|
$
225,078
|
|
$
210,411
|
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,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Subscription and
support
|
|
$ 51,711
|
|
$ 37,003
|
|
$ 183,658
|
|
$ 131,060
|
Professional services
and other
|
|
6,556
|
|
5,342
|
|
26,211
|
|
18,894
|
Total
revenue
|
|
58,267
|
|
42,345
|
|
209,869
|
|
149,954
|
Cost of revenue
(1):
|
|
|
|
|
|
|
|
|
Subscription and
support
|
|
11,284
|
|
8,104
|
|
40,632
|
|
28,742
|
Professional services
and other
|
|
7,813
|
|
5,980
|
|
31,484
|
|
22,059
|
Total
cost of revenue
|
|
19,097
|
|
14,084
|
|
72,116
|
|
50,801
|
Gross
profit:
|
|
|
|
|
|
|
|
|
Subscription and
support
|
|
40,427
|
|
28,899
|
|
143,026
|
|
102,318
|
Professional services
and other
|
|
(1,257)
|
|
(638)
|
|
(5,273)
|
|
(3,165)
|
Total
gross profit
|
|
39,170
|
|
28,261
|
|
137,753
|
|
99,153
|
Operating expenses
(1):
|
|
|
|
|
|
|
|
|
Research and
development
|
|
10,476
|
|
8,327
|
|
39,077
|
|
30,337
|
Sales and
marketing
|
|
33,723
|
|
29,716
|
|
129,072
|
|
98,843
|
General and
administrative
|
|
10,588
|
|
7,066
|
|
38,056
|
|
25,583
|
Total
operating expenses
|
|
54,787
|
|
45,109
|
|
206,205
|
|
154,763
|
Loss from
operations
|
|
(15,617)
|
|
(16,848)
|
|
(68,452)
|
|
(55,610)
|
Other income
(expense), net
|
|
(168)
|
|
120
|
|
81
|
|
178
|
Loss before provision
(benefit) for income taxes
|
|
(15,785)
|
|
(16,728)
|
|
(68,371)
|
|
(55,432)
|
Provision (benefit)
for income taxes
|
|
254
|
|
(573)
|
|
708
|
|
(477)
|
Net loss
|
|
(16,039)
|
|
(16,155)
|
|
(69,079)
|
|
(54,955)
|
Net loss and
adjustment attributable to redeemable non-controlling
interests*
|
|
(1,112)
|
|
242
|
|
(2,418)
|
|
618
|
Net loss attributable
to Marketo
|
|
$(17,151)
|
|
$(15,913)
|
|
$ (71,497)
|
|
$ (54,337)
|
|
|
|
|
|
|
|
|
|
Net loss per share of
common stock, basic and diluted
|
|
$ (0.40)
|
|
$ (0.39)
|
|
$ (1.68)
|
|
$ (1.35)
|
Shares used in
computing net loss per share of common stock, basic and
diluted
|
|
43,383
|
|
41,059
|
|
42,504
|
|
40,385
|
|
|
|
|
|
|
|
|
|
* During the three
months and for the year ended December 31, 2015 the Company
recorded an adjustment to redeemable non-controlling interests of
$(1.5) million and $(4.0) million, respectively, which is included
in this line item.
|
|
|
|
|
|
|
|
|
|
(1) Amounts include
stock-based compensation expense as follows (in
thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended December 31,
|
|
For the Year
Ended December 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
Cost of subscription
and support revenue
|
|
$ 740
|
|
$ 424
|
|
$ 2,691
|
|
$ 1,626
|
Cost of professional
services and other revenue
|
|
1,105
|
|
607
|
|
4,320
|
|
2,363
|
Research and
development
|
|
1,716
|
|
1,737
|
|
7,637
|
|
5,353
|
Sales and
marketing
|
|
2,724
|
|
2,841
|
|
12,655
|
|
8,860
|
General and
administrative
|
|
3,223
|
|
2,078
|
|
11,879
|
|
6,918
|
Total stock-based
compensation expense
|
|
$ 9,508
|
|
$ 7,687
|
|
$ 39,182
|
|
$ 25,120
|
MARKETO,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
For the Year
Ended
December
31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net loss attributable
to Marketo
|
|
$ (17,151)
|
|
$ (15,913)
|
|
$ (71,497)
|
|
$ (54,337)
|
Net loss and
adjustment attributable to redeemable non-controlling
interests
|
|
1,112
|
|
(242)
|
|
2,418
|
|
(618)
|
Net loss
|
|
(16,039)
|
|
(16,155)
|
|
(69,079)
|
|
(54,955)
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
3,865
|
|
2,699
|
|
13,937
|
|
9,475
|
Stock-based
compensation expense
|
|
9,508
|
|
7,687
|
|
39,182
|
|
25,120
|
Deferred income
taxes
|
|
217
|
|
(625)
|
|
568
|
|
(672)
|
Provision for
doubtful accounts
|
|
336
|
|
126
|
|
738
|
|
417
|
Loss on sale of
assets
|
|
7
|
|
1
|
|
7
|
|
1
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
(9,240)
|
|
(12,010)
|
|
(13,952)
|
|
(11,779)
|
Prepaid expenses and
other current assets
|
|
(2,857)
|
|
540
|
|
(4,489)
|
|
(1,388)
|
Other
assets
|
|
(21)
|
|
(75)
|
|
(834)
|
|
(709)
|
Accounts
payable
|
|
(504)
|
|
(436)
|
|
1,628
|
|
(342)
|
Accrued expenses and
other current liabilities
|
|
3,790
|
|
5,033
|
|
5,213
|
|
(1,599)
|
Deferred
revenue
|
|
10,041
|
|
10,042
|
|
29,686
|
|
22,371
|
Other
liabilities
|
|
(587)
|
|
(12)
|
|
(355)
|
|
37
|
Net cash provided by
(used in) operating activities
|
|
(1,484)
|
|
(3,185)
|
|
2,250
|
|
(14,023)
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Increase in
restricted cash
|
|
-
|
|
-
|
|
(215)
|
|
-
|
Purchase of property
and equipment
|
|
(4,229)
|
|
(2,136)
|
|
(15,849)
|
|
(8,378)
|
Capitalized software
development
|
|
(91)
|
|
(182)
|
|
(1,017)
|
|
(645)
|
Cash used in
acquisition, net of cash acquired
|
|
-
|
|
326
|
|
-
|
|
326
|
Net cash used in
investing activities
|
|
(4,320)
|
|
(1,992)
|
|
(17,081)
|
|
(8,697)
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from
issuance of common stock upon exercise of stock
options
|
|
1,234
|
|
826
|
|
5,999
|
|
5,540
|
Proceeds from
issuance of common stock issued under employee stock purchase
plan
|
|
-
|
|
-
|
|
5,629
|
|
6,143
|
Investment from
redeemable non-controlling interests
|
|
-
|
|
-
|
|
1,678
|
|
1,953
|
Repurchase of
unvested common stock from terminated employees
|
|
(6)
|
|
(1)
|
|
(38)
|
|
(49)
|
Withholding taxes
remitted for the net share settlement of equity awards
|
|
(340)
|
|
(518)
|
|
(740)
|
|
(2,638)
|
Repayment of
debt
|
|
(690)
|
|
(663)
|
|
(2,719)
|
|
(2,187)
|
Payment of deferred
follow-on offering costs
|
|
-
|
|
-
|
|
-
|
|
(104)
|
Payment incurred for
common stock registration related to acquisition
|
|
-
|
|
-
|
|
-
|
|
(319)
|
Net cash provided by
(used in) financing activities
|
|
198
|
|
(356)
|
|
9,809
|
|
8,339
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
|
(29)
|
|
(617)
|
|
(404)
|
|
(1,274)
|
Net decrease in cash
and cash equivalents
|
|
(5,635)
|
|
(6,150)
|
|
(5,426)
|
|
(15,655)
|
Cash and cash
equivalents — beginning of period
|
|
112,853
|
|
118,794
|
|
112,644
|
|
128,299
|
Cash and cash
equivalents — end of period
|
|
$107,218
|
|
$112,644
|
|
$107,218
|
|
$112,644
|
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, 2015
|
|
Three Months
Ended
December 31, 2015
|
|
Three Months
Ended
December 31, 2014
|
|
For the Year
Ended
December 31, 2015
|
|
For the Year
Ended
December 31, 2014
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Subscription and
support
|
|
$ 48,090
|
|
$ 51,711
|
|
$ 37,003
|
|
$ 183,658
|
|
$ 131,060
|
|
Professional services
and other
|
|
6,832
|
|
6,556
|
|
5,342
|
|
26,211
|
|
18,894
|
Total
Revenue
|
|
$ 54,922
|
|
$ 58,267
|
|
$ 42,345
|
|
$ 209,869
|
|
$ 149,954
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Subscription and
support
|
|
$ 10,504
|
|
$ 11,284
|
|
$
8,104
|
|
$ 40,632
|
|
$ 28,742
|
|
Stock-based compensation
|
|
(706)
|
|
(740)
|
|
(424)
|
|
(2,691)
|
|
(1,626)
|
|
Amortization of acquired intangible assets
|
|
(377)
|
|
(377)
|
|
(300)
|
|
(1,508)
|
|
(1,156)
|
|
Non-GAAP subscription
and support
|
|
$
9,421
|
|
$ 10,167
|
|
$
7,380
|
|
$ 36,433
|
|
$ 25,960
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Professional
services and other
|
|
$
8,157
|
|
$
7,813
|
|
$
5,980
|
|
$ 31,484
|
|
$ 22,059
|
|
Stock-based compensation
|
|
(1,178)
|
|
(1,105)
|
|
(607)
|
|
(4,320)
|
|
(2,363)
|
|
Non-GAAP professional
services and other
|
|
$
6,979
|
|
$
6,708
|
|
$
5,373
|
|
$ 27,164
|
|
$ 19,696
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit and
gross margin reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP subscription
and support gross profit
|
|
$ 38,669
|
|
$ 41,544
|
|
$ 29,623
|
|
$ 147,225
|
|
$ 105,100
|
|
Non-GAAP professional
services and other gross profit
|
|
(147)
|
|
(152)
|
|
(31)
|
|
(953)
|
|
(802)
|
|
Non-GAAP gross
profit
|
|
$ 38,522
|
|
$ 41,392
|
|
$ 29,592
|
|
$ 146,272
|
|
$ 104,298
|
|
Non-GAAP
subscription and support gross margin
|
|
80.4%
|
|
80.3%
|
|
80.1%
|
|
80.2%
|
|
80.2%
|
|
Non-GAAP
professional services and other gross margin
|
|
-2.2%
|
|
-2.3%
|
|
-0.6%
|
|
-3.6%
|
|
-4.2%
|
|
Non-GAAP gross
margin
|
|
70.1%
|
|
71.0%
|
|
69.9%
|
|
69.7%
|
|
69.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Research and
development
|
|
$
9,738
|
|
$ 10,476
|
|
$
8,327
|
|
$ 39,077
|
|
$ 30,337
|
|
Stock-based compensation
|
|
(1,966)
|
|
(1,716)
|
|
(1,737)
|
|
(7,637)
|
|
(5,353)
|
|
Amortization of acquired intangible assets
|
|
(38)
|
|
(38)
|
|
(6)
|
|
(150)
|
|
(6)
|
|
Non-GAAP research and
development
|
|
$
7,734
|
|
$
8,722
|
|
$
6,584
|
|
$ 31,290
|
|
$ 24,978
|
|
As a % of total
revenues, non-GAAP
|
|
14.1%
|
|
15.0%
|
|
15.5%
|
|
14.9%
|
|
16.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Sales and
marketing
|
|
$ 33,262
|
|
$ 33,723
|
|
$ 29,716
|
|
$ 129,072
|
|
$ 98,843
|
|
Stock-based compensation
|
|
(3,725)
|
|
(2,724)
|
|
(2,841)
|
|
(12,655)
|
|
(8,860)
|
|
Amortization of acquired intangible assets
|
|
(136)
|
|
(137)
|
|
(137)
|
|
(547)
|
|
(566)
|
|
Non-GAAP sales and
marketing
|
|
$ 29,401
|
|
$ 30,862
|
|
$ 26,738
|
|
$ 115,870
|
|
$ 89,417
|
|
As a % of total
revenues, non-GAAP
|
|
53.5%
|
|
53.0%
|
|
63.1%
|
|
55.2%
|
|
59.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP General and
administrative
|
|
$
9,726
|
|
$ 10,588
|
|
$
7,066
|
|
$ 38,056
|
|
$ 25,583
|
|
Stock-based compensation
|
|
(3,092)
|
|
(3,223)
|
|
(2,078)
|
|
(11,879)
|
|
(6,918)
|
|
Amortization of acquired intangible assets
|
|
(46)
|
|
(45)
|
|
(46)
|
|
(183)
|
|
(184)
|
|
Acquisition related costs
|
|
-
|
|
-
|
|
(185)
|
|
-
|
|
(185)
|
|
Non-GAAP general and
administrative
|
|
$
6,588
|
|
$
7,320
|
|
$
4,757
|
|
$ 25,994
|
|
$ 18,296
|
|
As a % of total
revenues, non-GAAP
|
|
12.0%
|
|
12.6%
|
|
11.2%
|
|
12.4%
|
|
12.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP loss from
operations
|
|
$ (16,465)
|
|
$ (15,617)
|
|
$ (16,848)
|
|
$ (68,452)
|
|
$ (55,610)
|
|
Stock-based compensation
|
|
10,667
|
|
9,508
|
|
7,687
|
|
39,182
|
|
25,120
|
|
Amortization of acquired intangible assets
|
|
597
|
|
597
|
|
489
|
|
2,388
|
|
1,912
|
|
Acquisition related costs
|
|
-
|
|
-
|
|
185
|
|
-
|
|
185
|
|
Non-GAAP loss from
operations
|
|
$
(5,201)
|
|
$
(5,512)
|
|
$
(8,487)
|
|
$ (26,882)
|
|
$ (28,393)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net loss
attributable to Marketo
|
|
$ (18,238)
|
|
$ (17,151)
|
|
$ (15,913)
|
|
$ (71,497)
|
|
$ (54,337)
|
|
Stock-based compensation
|
|
10,667
|
|
9,508
|
|
7,687
|
|
39,182
|
|
25,120
|
|
Amortization of acquired intangible assets
|
|
597
|
|
597
|
|
489
|
|
2,388
|
|
1,912
|
|
Adjustment to redeemable non-controlling interests
|
|
1,630
|
|
1,521
|
|
-
|
|
4,063
|
|
-
|
|
Acquisition related costs
|
|
-
|
|
-
|
|
185
|
|
-
|
|
185
|
|
Non-GAAP Net loss
attributable to Marketo
|
|
$
(5,344)
|
|
$
(5,525)
|
|
$
(7,552)
|
|
$ (25,864)
|
|
$ (27,120)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
$
(0.43)
|
|
$
(0.40)
|
|
$
(0.39)
|
|
$
(1.68)
|
|
$
(1.35)
|
|
Non-GAAP
|
|
$
(0.12)
|
|
$
(0.13)
|
|
$
(0.18)
|
|
$
(0.61)
|
|
$
(0.67)
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used to
compute basic and diluted GAAP and Non-GAAP net loss per
share
|
|
42,835
|
|
43,383
|
|
41,059
|
|
42,504
|
|
40,385
|
MARKETO,
INC.
|
NON-GAAP
SUPPLEMENTAL FINANCIAL INFORMATION
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) Calculated
Billings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended December
31,
|
|
For the Year
Ended
December
31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Total
revenue
|
|
$ 58,267
|
|
$ 42,345
|
|
$ 209,869
|
|
$ 149,954
|
Add increase in total
deferred revenue
|
|
9,830
|
|
9,736
|
|
29,020
|
|
21,589
|
Total calculated
billings
|
|
$ 68,097
|
|
$ 52,081
|
|
$ 238,889
|
|
$ 171,543
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2) Reconciliation
of GAAP Operating Cash Flow to Free Cash Flow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
For the Year
Ended
December
31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
GAAP net cash
provided by operating activities
|
|
$ (1,484)
|
|
$ (3,185)
|
|
$ 2,250
|
|
$ (14,023)
|
Less purchases of
property plant and equipment
|
|
(4,229)
|
|
(2,136)
|
|
(15,849)
|
|
(8,378)
|
Less capitalized
software development
|
|
(91)
|
|
(182)
|
|
(1,017)
|
|
(645)
|
Free cash
flow
|
|
$ (5,804)
|
|
$ (5,503)
|
|
$ (14,616)
|
|
$ (23,046)
|
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
|
|
For the Year
Ending
|
|
|
March 31,
2016
|
|
December 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss per
diluted share range
|
|
$ (0.43)
|
|
$ (0.45)
|
|
$ (1.57)
|
|
$ (1.63)
|
Adjustments:
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
0.26
|
|
0.26
|
|
1.05
|
|
1.05
|
Amortization of
acquired intangibles per share
|
|
0.01
|
|
0.01
|
|
0.05
|
|
0.05
|
NCI adjustment to
redemption value
|
|
-
|
|
-
|
|
-
|
|
-
|
Non-GAAP net loss
per diluted share range
|
|
$ (0.16)
|
|
$ (0.18)
|
|
$ (0.47)
|
|
$ (0.53)
|
|
|
|
|
|
|
|
|
|
Weighted Average
Shares Outstanding
|
|
44,000
|
|
44,000
|
|
44,842
|
|
44,842
|
The GAAP and non-GAAP
net income per share targets provided above 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.
|
Logo -
http://photos.prnewswire.com/prnh/20070917/AQM011LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/marketo-announces-fourth-quarter-and-full-year-2015-results-300217644.html
SOURCE Marketo, Inc.