- First Quarter Revenue up 30.3% Year-Over-Year
- Remaining Performance Obligations of $1.1 billion, up 33.5%
Year-Over-Year
- Current Remaining Performance Obligations of $562.1 million, up
27.2% Year-Over-Year
Anaplan, Inc. (NYSE: PLAN), provider of a leading cloud-native
platform for orchestrating business performance, today announced
financial results for its first quarter ended April 30, 2022.
“I am excited by our Q1 performance where we saw new and
existing customers turn to Anaplan to solve complex challenges
across their enterprise. Our existing customers continue to be
focused on their major digital transformation journeys as they
leverage Anaplan’s platform with additional use cases,” said Frank
Calderoni, chief executive officer of Anaplan. “We remain committed
to delivering the best-in-class solution as the market leader in
the connected planning space.”
First Quarter Fiscal 2023 Financial
Results
- Total revenue was $169.2 million, an increase of 30.3%
year-over-year. Subscription revenue was $152.3 million, an
increase of 28.7% year-over-year.
- Remaining Performance Obligations of $1.1 billion, an increase
of 33.5% year-over-year. cRPO was $562.1 million, an increase of
27.2% year-over-year.
- GAAP operating loss was $60.1 million or 35.5% of total
revenue, compared to $49.6 million in the first quarter of fiscal
year 2022 or 38.2% of total revenue. Non-GAAP operating loss was
$6.0 million or 3.5% of total revenue, compared to $12.4 million in
the first quarter of fiscal year 2022 or 9.6% of total
revenue.
- GAAP loss per share was $0.39, compared to $0.36 in the first
quarter of fiscal year 2022. Non-GAAP loss per share was $0.02,
compared to $0.10 in the first quarter of fiscal year 2022.
- Cash and Cash Equivalents were $304.0 million as of April 30,
2022.
Transaction with Thoma
Bravo
Due to Anaplan’s pending acquisition by Thoma Bravo that was
announced on March 20, 2022, the Company will not be holding a
conference call or live webcast to discuss Anaplan’s first quarter
of fiscal year 2023 financial results. In addition, the Company
will not be providing financial guidance for the second quarter of
fiscal year 2023 and is suspending its financial guidance for the
full fiscal year 2023 in light of the pending transaction.
The section titled “Non-GAAP Financial Measures” below contains
a description of the non-GAAP financial measures used in this press
release, the section titled “Operating Metrics” below contains
definitions of our operating metrics, and a reconciliation of GAAP
and non-GAAP financial measures is contained in the tables
below.
Recent Highlights
- Anaplan named a Leader in the 2022 Gartner Supply Chain
Planning Solutions Magic Quadrant
- Anaplan launches Environmental, Social and Governance (ESG)
program
- Ventana Research named Anaplan a leader in its 2022 Business
Planning Value Index and Revenue Performance Management Value
Index
- Anaplan named to Constellation Research’s 2022 ShortList for
Cloud-based Planning Platforms
About Anaplan
Anaplan (NYSE: PLAN) is a transformative way to see, plan, and
run your business. Using our proprietary Hyperblock™ technology,
Anaplan lets you contextualize real-time performance, and forecast
future outcomes for faster, confident decisions. Anaplan enables
connected strategy and planning across your enterprise to move your
business forward. Based in San Francisco, Anaplan has over 180
partners and more than 1,900 customers worldwide. To learn more,
visit anaplan.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, each as
amended, including all statements other than statements of
historical fact contained in this press release and includes,
without limitation, statements about the pending acquisition by
Thoma Bravo. These forward-looking statements are based on
information available to the company as of the date of this press
release and are based on management’s current views and
assumptions. These forward-looking statements are conditioned upon
and also involve a number of known and unknown risks,
uncertainties, and other factors that could cause actual results,
performance or events to differ materially from those anticipated
by these forward-looking statements. Such risks, uncertainties, and
other factors may be beyond the company’s control and may pose a
risk to the company’s operating and financial condition. Such risks
and uncertainties include, but are not limited to, the following
risks: (i) the risk that the merger (the “Merger”) of Anaplan with
a wholly owned subsidiary of an affiliate of Thoma Bravo, Alpine
Parent, LLC (“Parent”), may not be consummated in a timely manner,
if at all; (ii) the risk that the Merger may not be consummated as
a result of Parent’s failure to comply with its covenants and that,
in certain circumstances, the Company may not be entitled to a
termination fee; (iii) the risk that the definitive Merger
Agreement may be terminated in circumstances that require the
Company to pay a termination fee; (iv) risks related to the
diversion of management’s attention from the Company’s ongoing
business operations; (v) risks regarding the failure of Parent to
obtain the necessary financing to complete the Merger; (vi) the
effect of the announcement of the Merger on the Company’s business
relationships (including, without limitation, customers and
venues), operating results and business generally; (vii) legal
proceedings, judgments or settlements, including those that have
been and may be instituted against the Company, the Company’s board
of directors and executive officers and others, as with respect to
the proposed Merger; and (viii) risks related to obtaining the
requisite consents to the Merger, including, without limitation,
the timing (including possible delays) and receipt of regulatory
approvals from governmental entities (including any conditions,
limitations or restrictions placed on these approvals) and the risk
that one or more governmental entities may deny approval. These
forward-looking statements should not be relied upon as
representing the company’s views as of any subsequent date and the
company undertakes no obligation to update forward-looking
statements to reflect events or circumstances after the date they
were made. The information contained in, or that can be accessed
through, Anaplan’s website and social media channels are not part
of this press release.
Preliminary Condensed Consolidated
Statements of Operations
(In thousands, except per share
amounts)
(Unaudited)
Three Months Ended
April 30,
(In thousands, except per share
amounts)
2022
2021
Revenue:
Subscription revenue
$
152,343
$
118,343
Professional services revenue
16,816
11,482
Total revenue
169,159
129,825
Cost of revenue:
Cost of subscription revenue (1)
28,635
21,329
Cost of professional services revenue
(1)
17,928
11,492
Total cost of revenue
46,563
32,821
Gross profit
122,596
97,004
Operating expenses:
Research and development (1)
43,738
33,212
Sales and marketing (1)
98,387
88,470
General and administrative (1)
40,583
24,945
Total operating expenses
182,708
146,627
Loss from operations
(60,112
)
(49,623
)
Interest income (expense), net
(31
)
(151
)
Other income (expense), net
2,566
(459
)
Loss before income taxes
(57,577
)
(50,233
)
Provision for income taxes
(283
)
(1,258
)
Net loss
$
(57,860
)
$
(51,491
)
Net loss per share attributable to common
stockholders, basic and diluted
$
(0.39
)
$
(0.36
)
Weighted-average shares used in computing
net loss per share attributable to common stockholders, basic and
diluted
149,877
144,161
(1) Includes stock-based compensation
expense as follows:
Cost of subscription revenue
$
2,000
$
1,522
Cost of professional services revenue
1,347
831
Research and development
10,571
6,966
Sales and marketing
16,150
16,633
General and administrative
8,461
8,119
Total stock-based compensation expense
$
38,529
$
34,071
Preliminary Condensed Consolidated
Balance Sheets
(In thousands)
(Unaudited)
As of
April 30, 2022
January 31, 2022
ASSETS
Current assets:
Cash and cash equivalents
$
304,021
$
299,371
Accounts receivable, net
132,657
196,500
Deferred commissions, current portion
50,636
49,124
Prepaid expenses and other current
assets
34,650
32,814
Total current assets
521,964
577,809
Property and equipment, net
63,258
63,119
Deferred commissions, net of current
portion
109,409
110,044
Goodwill
32,379
32,379
Operating lease right-of-use asset
28,736
31,287
Other noncurrent assets
20,226
17,997
TOTAL ASSETS
$
775,972
$
832,635
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
9,064
$
9,294
Accrued expenses
113,426
123,891
Deferred revenue, current portion
352,121
378,882
Operating lease liabilities, current
portion
10,081
10,400
Total current liabilities
484,692
522,467
Deferred revenue, net of current
portion
2,226
3,271
Operating lease liabilities, net of
current portion
23,628
26,046
Other noncurrent liabilities
19,039
18,150
TOTAL LIABILITIES
529,585
569,934
Stockholders’ equity:
Common stock
15
15
Accumulated other comprehensive loss
(9,863
)
(7,696
)
Additional paid-in capital
1,164,672
1,120,959
Accumulated deficit
(908,437
)
(850,577
)
TOTAL STOCKHOLDERS’ EQUITY
246,387
262,701
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
775,972
$
832,635
Preliminary Condensed Consolidated
Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended April 30,
2022
2021
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net loss
$
(57,860
)
$
(51,491
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
7,181
6,970
Amortization of deferred commissions
12,506
9,708
Stock-based compensation
38,529
34,071
Reduction of operating lease right-of-use
assets and accretion of operating lease liabilities
2,495
2,434
Foreign currency remeasurement losses
(gains)
(2,437
)
(554
)
Other non-cash items
—
230
Changes in operating assets and
liabilities:
Accounts receivable
61,317
43,939
Prepaid expenses and other current
assets
(2,577
)
(1,301
)
Other noncurrent assets
298
(108
)
Deferred commissions
(17,347
)
(12,547
)
Accounts payable and accrued expenses
(7,233
)
(11,120
)
Deferred revenue
(18,263
)
(4,845
)
Payments for operating lease liabilities,
net
(2,695
)
(2,293
)
Other noncurrent liabilities
455
716
Net cash provided by operating
activities
14,369
13,809
CASH FLOWS FROM INVESTING
ACTIVITIES:
Purchase of property and equipment
(878
)
(3,113
)
Capitalized internal-use software
(3,629
)
(3,086
)
Net cash used in investing activities
(4,507
)
(6,199
)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from exercise of stock
options
4,161
2,092
Principal payments on capital lease
obligations
(2,156
)
(2,520
)
Net cash provided by financing
activities
2,005
(428
)
Effect of exchange rate changes on cash
and cash equivalents
(4,320
)
(656
)
NET INCREASE (DECREASE) IN CASH, CASH
EQUIVALENTS, AND RESTRICTED CASH
7,547
6,526
CASH, CASH EQUIVALENTS, AND RESTRICTED
CASH - Beginning of period
299,371
320,990
CASH, CASH EQUIVALENTS, AND RESTRICTED
CASH - End of period
$
306,918
$
327,516
Reconciliation of GAAP to Non-GAAP
Financial Measures
(In thousands, except percentages and
per share amounts)
(Unaudited)
Three Months Ended April 30,
(In thousands, except percentages and per
share amounts)
2022
2021
Revenue
$
169,159
$
129,825
GAAP operating loss
$
(60,112
)
$
(49,623
)
Stock-based compensation
38,529
34,071
Merger related costs and other
expenses
12,510
—
Employer payroll tax expense related to
employee stock plans
1,983
2,000
Business combination and other related
cost
776
778
Amortization of acquired intangibles
335
335
Non-GAAP operating loss
$
(5,979
)
$
(12,439
)
GAAP operating margin %
(35.5
)%
(38.2
)%
Stock-based compensation %
22.8
%
26.2
%
Merger related costs and other expenses
%
7.3
%
—
%
Employer payroll tax expense related to
employee stock plans %
1.2
%
1.5
%
Business combination and other related
cost %
0.5
%
0.6
%
Amortization of acquired intangibles %
0.2
%
0.3
%
Non-GAAP operating margin %
(3.5
)%
(9.6
)%
GAAP net loss
$
(57,860
)
$
(51,491
)
Stock-based compensation
38,529
34,071
Merger related costs and other
expenses
12,510
—
Employer payroll tax expense related to
employee stock plans
1,983
2,000
Business combination and other related
cost
776
778
Amortization of acquired intangibles
335
335
Non-GAAP net loss
$
(3,727
)
$
(14,307
)
GAAP net loss per share, basic and
diluted
$
(0.39
)
$
(0.36
)
Stock-based compensation
0.26
0.24
Merger related costs and other
expenses
0.09
—
Employer payroll tax expense related to
employee stock plans
0.01
0.01
Business combination and other related
cost
0.01
0.01
Amortization of acquired intangibles
—
—
Non-GAAP net loss per share
$
(0.02
)
$
(0.10
)
Shares used to compute GAAP net loss per
share attributable to common stockholders, basic and diluted
149,877
144,161
Shares used to compute Non-GAAP net loss
per share
149,877
144,161
GAAP net cash provided by (used in)
operating activities
$
14,369
$
13,809
Purchase of property and equipment
(878
)
(3,113
)
Capitalized internal-use software
(3,629
)
(3,086
)
Non-GAAP free cash flow
$
9,862
$
7,610
Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with
U.S. generally accepted accounting principles (GAAP), this press
release and the accompanying tables contain non-GAAP financial
measures, including non-GAAP loss from operations, non-GAAP
operating margin, non-GAAP net loss, non-GAAP net loss per share,
and free cash flow. The non-GAAP financial information is presented
for supplemental informational purposes only, and is not intended
to be considered in isolation or as a substitute for, or superior
to, financial information prepared and presented in accordance with
GAAP. The non-GAAP measures presented here may be different from
similarly-titled non-GAAP measures used by other companies.
We use these non-GAAP measures in conjunction with GAAP measures
as part of our overall assessment of our performance, including the
preparation of our annual operating budget and quarterly forecasts,
to evaluate the effectiveness of our business strategies and to
communicate with our board of directors concerning our financial
performance. We believe these non-GAAP measures, when viewed
collectively with the GAAP measures, may be helpful to investors
because they provide consistency and comparability with our past
financial performance and facilitate period-to-period comparisons
of our operating results.
There are material limitations associated with the use of
non-GAAP financial measures since they exclude significant expenses
and income that are required by GAAP to be recorded in our
financial statements. The definitions of our non-GAAP measures may
differ from the definitions used by other companies and therefore
comparability may be limited. In addition, other companies may
utilize metrics that are not similar to ours. We compensate for
these limitations by analyzing current and future results on a GAAP
basis as well as a non-GAAP basis and by providing specific
information regarding the GAAP items excluded from these non-GAAP
financial measures. Please see the reconciliation tables in this
release for the reconciliation of GAAP and non-GAAP results.
We adjust the following items from one or more of our non-GAAP
financial measures:
Stock-based compensation expense. We exclude stock-based
compensation expense, which is a non-cash expense, from certain of
our non-GAAP financial measures because we believe that excluding
this item provides meaningful supplemental information regarding
operational performance. In particular, companies calculate
stock-based compensation expense using a variety of valuation
methodologies and subjective assumptions.
Employer payroll tax expense related to employee stock plans. We
exclude employer payroll tax expense related to employee stock
plans, which is a cash expense, from certain of our non-GAAP
financial measures because we believe that excluding this item
provides meaningful supplemental information regarding operational
performance. In particular, this expense is tied to the exercise or
vesting of underlying equity awards and the price of our common
stock at the time of exercise or vesting, which may vary from
period to period independent of the operating performance of our
business.
Amortization of acquired intangible assets. We exclude
amortization of acquired intangible assets, which is a non-cash
expense, from certain of our non-GAAP financial measures. Our
expenses for amortization of intangible assets are inconsistent in
amount and frequency because they are significantly affected by the
timing, size of acquisitions and the inherent subjective nature of
purchase price allocations. We exclude these amortization expenses
because we do not believe these expenses have a direct correlation
to the operation of our business.
Business combinations and related cost. We exclude transaction,
integration, and retention expenses that are directly related to
business combinations from certain of our non-GAAP financial
measures because we believe that excluding these items provides
meaningful supplemental information regarding operational
performance.
Merger related costs and other expenses. We exclude merger
related costs and other expenses from certain of our non-GAAP
financial measures because we believe that excluding these items
provides meaningful supplemental information regarding operational
performance. Merger related costs for three months ended April 30,
2022, relates to $9.9 million incurred for our pending acquisition
by entities affiliated with Thoma Bravo. Other expenses includes
non-recurring fees paid for third party advisory and professional
services related to shareholder activism.
Free cash flow. Our management reviews cash flows generated from
operations after taking into consideration capital expenditures
such as purchase of property and equipment and internal-use
software as these expenditures are considered to be a necessary
component of ongoing operations. We define non-GAAP free cash flow
as net cash provided by (used in) operating activities, reduced by
purchase of property and equipment and capitalization of
internal-use software.
Operating Metrics
Remaining performance obligations (RPO) represents all future
revenue under contract that has not yet recognized, which includes
deferred revenue and non-cancelable amounts that will be invoiced
and recognized as revenue in future periods.
Current remaining performance obligations (cRPO) represents the
portion of RPO expected to be recognized as revenue in the next 12
months.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220526005088/en/
Investor Contact: Vikram Khosla investors@anaplan.com
Media Contact: Anthony Harrison press@anaplan.com
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