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Section 1: 8-K (8-K)

modn-8k_20180807.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

August 7, 2018

Date of Report (Date of earliest event reported)

 

MODEL N, INC.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware

 

001-35840

 

77-0528806

(State or Other Jurisdiction
of Incorporation)

 

(Commission
File Number)

 

(IRS Employer Identification No.)

 

 

777 Mariners Island Boulevard, Suite 300

San Mateo, California 94404

 

 

 (Address of Principal Executive Offices) (Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (650) 610-4600

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

 

 

 

 


 

 

 

 

 

 

Item 2.02.

     Results of Operations and Financial Condition. 

On August 7, 2018, the Company issued a press release announcing its financial results for the third quarter fiscal year 2018, which ended June 30, 2018. A copy of the press release is attached as Exhibit 99.1 to this current report on Form 8-K.

The information contained in this Item 2.02 of this current report on Form 8-K and the exhibits attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

Item 9.01.

Financial Statements and Exhibits.

(d)

Exhibits.

The following exhibits are furnished herewith:

 

Exhibit

Number

  

Description

 

 

99.1

  

Press Release entitled “Model N Announces Third Quarter Fiscal Year 2018 Financial Results,” dated August 7, 2018.

 

 

 

 

 

 


 

SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

MODEL N, INC.

(Registrant)

 

 

By:

 

/s/ David Barter

 

 

David Barter

 

 

Senior Vice President and Chief Financial Officer

Date: August 7, 2018

 

 

 

 

(Back To Top)

Section 2: EX-99.1 (EX-99.1)

modn-ex991_6.htm

 

Exhibit 99.1

 

MODEL N ANNOUNCES THIRD QUARTER OF

FISCAL YEAR 2018 FINANCIAL RESULTS

 

 

San Mateo, CA – Model N, Inc., (NYSE: MODN), the leading provider of revenue management cloud solutions for the pharmaceutical, medical device, high tech, manufacturing and semiconductor industries, today announced financial results for the third quarter, which ended June 30, 2018.

 

“Model N exceeded its revenue and profitability guidance for the third quarter of fiscal 2018.  The strong Q3 performance puts us on track to deliver record revenue, profitability and cash flow for the full year,” said Jason Blessing, Chief Executive Officer of Model N. “Over the last 90 days, I’ve enjoyed meeting with our customers, employees and investors and thank them all for their warm welcome. I’m also very proud of our blue-chip customer portfolio and the mission critical role our cloud solutions play in their businesses.  My discussions also reinforce my belief that Model N has a great opportunity ahead of us.”

 

 

Third Quarter 2018 Financial Highlights:

 

 

Revenues: SaaS and maintenance revenues were $35.6 million compared to $28.5 million for the third quarter of fiscal 2017. Total revenues were $39.6 million compared to $34.2 million for the third quarter of fiscal 2017.

 

 

Gross Profit: Gross profit was $23.2 million compared to $18.5 million for the third quarter of fiscal 2017. Gross margins were 58% compared to 54% for the third quarter of fiscal 2017. Non-GAAP gross profit was $24.3 million compared to $21.4 million for the third quarter of fiscal 2017. Non-GAAP gross margins were 62% compared to 60% for the third quarter of fiscal 2017.

 

 

(Loss) income from operations: GAAP loss from operations was $(11.0) million compared to a GAAP loss from operations of $(8.8) million for the third quarter of fiscal 2017. Non-GAAP income from operations was $2.5 million compared to a Non-GAAP loss from operations of $(2.4) million for the third quarter of fiscal 2017.

 

 

Net loss: GAAP net loss was $(15.4) million, which includes $8.5 million of stock-based compensation expense related to the resignation of our former CEO and Chairman of the Board and $3.1 million of cash and non-cash expense related to the debt re-financing, compared to a net loss of $(10.4) million for the third quarter of fiscal 2017. GAAP basic and diluted net loss per share attributable to common stockholders was $(0.50) based upon weighted average shares outstanding of 30.7 million, as compared to net loss per share of $(0.36) for the third quarter of fiscal 2017 based upon weighted average shares outstanding of 28.9 million.

 

 

Non-GAAP net income (loss): Non-GAAP net loss was $(2.0) million, which includes $3.1 million of cash and non-cash expense related to the debt re-financing, as compared to a Non-GAAP net loss of $(4.1) million for the third quarter of fiscal 2017. Non-GAAP net loss per share was $(0.07) based upon weighted average shares outstanding of 30.7 million, as compared to Non-GAAP net loss per share of $(0.14) for the third quarter of fiscal 2017 based upon weighted average shares outstanding of 28.9 million.

 

 

Adjusted EBITDA: Adjusted EBITDA was $3.1 million compared to $(1.5) million for the third quarter of fiscal 2017.  

 

Use of Non-GAAP Financial Measures

 

A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial tables included in this press release.

 

Business Highlights:

 

 

Nevro Corp, a high growth medical device company with a treatment for chronic back and leg pain, subscribed to Model N’s Provider Management, part of the Model N Revenue Cloud for MedTech. This customer win highlights that Model N Revenue Cloud is a very effective platform for both large companies as well as emerging companies, enabling Model N to serve all segments across life sciences.

 

 

BioMarin, Diodes, Eli Lilly, CSL Behring, Fresenius Kabi, ICU Canada, Johnson & Johnson, EMD Serono and Mallinckrodt, among others, recently completed implementation projects and went live with Revenue Cloud.

 

 

Model N hosted a successful Life Sciences Commercial and Pricing Innovation Forum which focused on understanding how global pricing trends are affecting the life sciences industry. The conference covered a variety of topics including global tender management, country variations in pricing, outcome-based agreements, rebates and compliance.

 


 

 

Model N delivered the summer release of Revenue Cloud. Our SaaS customers will immediately benefit from new innovation to manage complex use cases for pricing, quoting, and rebates including increasingly complex global price management, updates to support new government regulations, as well as several user experience enhancements.

 

Guidance:

 

As of August 7, 2018, we are providing guidance for the fourth quarter of fiscal 2018 and the full fiscal year ending September 30, 2018.

 

(in $ millions, except per share outlook)

Fourth Quarter Fiscal 2018

Full Year Fiscal 2018

Total GAAP Revenues

35.2    –   35.7

153.1    –   153.6

Non-GAAP income from operations

0.5    –   1.0

7.2    –   7.7

Non-GAAP net loss per share

(0.03)    –  (0.01)

(0.05)    –  (0.03)

Adjusted EBITDA

1.2    –   1.7

10.2    –   10.7

 

Quarterly Results Conference Call

Model N will host a conference call today at 2:00 PM Pacific Time (5:00 PM Eastern Time) to review the company’s financial results for the third quarter, which ended June 30, 2018. The conference call can be accessed by dialing (877) 407-4018 from the United States or (201) 689-8471 internationally with reference to the company name and conference title, and a live webcast and replay of the conference call can be accessed from the investor relations page of Model N’s website at investor.modeln.com. Following the completion of the call through 11:59 p.m. ET on August 14, 2018, a telephone replay will be available by dialing (844) 512-2921 from the United States or (412) 317-6671 internationally with recording access code 13681148.

 

About Model N

 

Model N is the leader in revenue management solutions. Driving mission critical business processes such as configure, price and quote (CPQ), contract and rebate management, business intelligence, and regulatory compliance, Model N solutions transform the revenue lifecycle from a series of disjointed operations into a strategic end-to-end process. With deep industry expertise, Model N supports the complex business needs of the world’s leading brands in pharmaceutical, medical device, high tech, manufacturing and semiconductors across more than 120 countries, including Pfizer, AstraZeneca, Sanofi, Gilead, Abbott, Stryker, AMD, Micron, Seagate, STMicroelectronics, NXP, Sesotec, and Southern States.  For more information, visit www.modeln.com

 

Model N® is the registered trademark of Model N, Inc. Any other company names mentioned are the property of their respective owners and are mentioned for identification purposes only.

 



 

Forward-Looking Statements

 

This press release contains forward-looking statements including, among other things, statements regarding Model N’s fourth quarter and full year fiscal year 2018 revenue, , and other financial results as well as outlook for fiscal year 2018 and future prospects. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to risks, uncertainties, and assumptions. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. Risks include, but are not limited to: (i) delays in closing customer contracts; (ii) our ability to improve and sustain our sales execution; (iii) the timing of new orders and the associated revenue recognition; (iv) adverse changes in general economic or market conditions; (v) delays or reductions in information technology spending and resulting variability in customer orders from quarter to quarter; (vi) competitive factors, including but not limited to pricing pressures, industry consolidation, entry of new competitors and new applications and marketing initiatives by our competitors; (vii) our ability to manage our growth effectively; and (viii) acceptance of our applications and services by customers; (ix) success of new products; (x) the risk that the strategic initiatives that we may pursue will not result in significant future revenues; (xi) changes in health care regulation and policy and tax in the United States and worldwide; and (xii) our ability to retain customers, and (xiii) acquisition-related risks from our acquisition of Revitas. Further information on risks that could affect Model N’s results is included in our filings with the Securities and Exchange Commission (“SEC”), including our most recent quarterly report on Form 10-Q and our annual report on Form 10-K for the fiscal year ended September 30, 2017, and any current reports on Form 8-K that we may file from time to time. Should any of these risks or uncertainties materialize, actual results could differ materially from expectations. Model N assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release.



 

 

Non-GAAP Financial Measures

 

We have provided in this release financial information that has not been prepared in accordance with accounting standards generally accepted in the United States of America (“GAAP”). We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures to investors.

 

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures below. A reconciliation of our non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release.

 

Our reported results include certain non-GAAP financial measures, including non-GAAP gross profit, non-GAAP income (loss) from operations, non-GAAP net loss, non-GAAP net (loss) income per share, and adjusted EBITDA. Non-GAAP gross profit excludes stock-based compensation expense, acquisition & integration related expenses, deferred revenue adjustment and amortization of intangible assets. Non-GAAP loss from operations and non-GAAP net loss exclude stock-based compensation expense, amortization of intangible assets,  and acquisition & integration related expenses, deferred revenue adjustment and valuation allowance resulting from Revitas acquisition as they are often excluded by other companies to help investors understand the operational performance of their business and, in the case of stock-based compensation, can be difficult to predict and therefore we have not provided a reconciliation of forecasted Non-GAAP results with GAAP. In addition, stock-based compensation expense varies from period to period and company to company due to such things as differing valuation methodologies and changes in stock price.  Adjusted EBITDA is defined as net loss, adjusted depreciation and amortization, stock-based compensation expense, acquisition & integration related expenses, deferred revenue adjustment, interest (income) expense, net, and other (income) expenses, net, and provision (benefit) for income taxes.  Reconciliation tables are provided in this press release.

 

Investor Relations Contact:

ICR for Model N
Staci Mortenson, 650-610-4998

investorrelations@modeln.com

 

Media Contact:

pr@modeln.com

 

 


 

Model N Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

 

As of

 

 

As of

 

 

 

June 30,

 

 

September 30,

 

 

 

2018

 

 

2017

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

57,645

 

 

$

57,558

 

Accounts receivable, net

 

 

31,707

 

 

 

24,784

 

Prepaid expenses

 

 

3,307

 

 

 

3,733

 

Other current assets

 

 

405

 

 

 

1,013

 

Total current assets

 

 

93,064

 

 

 

87,088

 

Property and equipment, net

 

 

2,496

 

 

 

4,611

 

Goodwill

 

 

39,283

 

 

 

39,283

 

Intangible assets, net

 

 

35,977

 

 

 

40,156

 

Other assets

 

 

996

 

 

 

798

 

Total assets

 

$

171,816

 

 

$

171,936

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,383

 

 

$

3,002

 

Accrued employee compensation

 

 

12,376

 

 

 

14,996

 

Accrued liabilities

 

 

4,041

 

 

 

4,979

 

Deferred revenue, current portion

 

 

54,902

 

 

 

49,186

 

Long term debt, current portion

 

 

5,995

 

 

 

4,753

 

Total current liabilities

 

 

78,697

 

 

 

76,916

 

Long-term liabilities:

 

 

 

 

 

 

 

 

Long term debt

 

 

52,846

 

 

 

52,452

 

Other long-term liabilities

 

 

1,651

 

 

 

1,307

 

Total long-term liabilities

 

 

54,497

 

 

 

53,759

 

Total liabilities

 

 

133,194

 

 

 

130,675

 

Stockholders' equity:

 

 

 

 

 

 

 

 

Common Stock

 

 

5

 

 

 

4

 

Preferred Stock

 

 

 

 

 

 

Additional paid-in capital

 

 

239,372

 

 

 

217,052

 

Accumulated other comprehensive loss

 

 

(874

)

 

 

(502

)

Accumulated deficit

 

 

(199,881

)

 

 

(175,293

)

Total stockholders' equity

 

 

38,622

 

 

 

41,261

 

Total liabilities and stockholders' equity

 

$

171,816

 

 

$

171,936

 

 


 

Model N Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

(unaudited)

 

 

 

Three Months Ended June 30,

 

 

Nine months ended June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SaaS and maintenance

 

$

35,623

 

 

$

28,530

 

 

$

100,943

 

 

$

78,427

 

License and implementation

 

 

3,994

 

 

 

5,714

 

 

 

16,975

 

 

 

17,137

 

Total revenues

 

 

39,617

 

 

 

34,244

 

 

 

117,918

 

 

 

95,564

 

Cost of Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SaaS and maintenance

 

 

14,599

 

 

 

12,439

 

 

 

40,489

 

 

 

34,527

 

License and implementation

 

 

1,846

 

 

 

3,333

 

 

 

10,018

 

 

 

11,106

 

Total cost of revenues

 

 

16,445

 

 

 

15,772

 

 

 

50,507

 

 

 

45,633

 

Gross profit

 

 

23,172

 

 

 

18,472

 

 

 

67,411

 

 

 

49,931

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

7,746

 

 

 

8,393

 

 

 

24,861

 

 

 

23,302

 

Sales and marketing

 

 

9,338

 

 

 

10,739

 

 

 

26,845

 

 

 

31,081

 

General and administrative

 

 

17,044

 

 

 

8,096

 

 

 

33,099

 

 

 

26,949

 

Total operating expenses

 

 

34,128

 

 

 

27,228

 

 

 

84,805

 

 

 

81,332

 

Loss from operations

 

 

(10,956

)

 

 

(8,756

)

 

 

(17,394

)

 

 

(31,401

)

Interest expense (income), net

 

 

4,478

 

 

 

1,442

 

 

 

7,350

 

 

 

2,789

 

Other expenses (income), net

 

 

(344

)

 

 

3

 

 

 

(306

)

 

 

77

 

Loss before income taxes

 

 

(15,090

)

 

 

(10,201

)

 

 

(24,438

)

 

 

(34,267

)

(Benefit) provision for income taxes

 

 

345

 

 

 

234

 

 

 

150

 

 

 

(3,742

)

Net loss

 

$

(15,435

)

 

$

(10,435

)

 

$

(24,588

)

 

$

(30,525

)

Net loss per share attributable to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.50

)

 

$

(0.36

)

 

 

(0.82

)

 

$

(1.07

)

Weighted average number of shares used in computing net loss per share attributable to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

30,749

 

 

 

28,936

 

 

 

30,042

 

 

 

28,464

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Model N Inc.

Condensed Consolidated Statements of Cash Flows  

(in thousands)

(unaudited)

 

 

 

Nine Months Ended June 30,

 

 

 

2018

 

 

2017

 

Cash Flows From Operating Activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(24,588

)

 

$

(30,525

)

Adjustments to reconcile net loss to net cash used in operating activities

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

6,410

 

 

 

5,866

 

Stock-based compensation

 

 

19,312

 

 

 

6,935

 

Amortization of debt discount and issuance cost

 

 

686

 

 

 

502

 

Deferred income taxes

 

 

(581

)

 

 

(4,019

)

Other non-cash charges

 

 

(30

)

 

 

239

 

Loss on debt extinguishment

 

 

3,142

 

 

 

 

Changes in assets and liabilities, net of acquisition:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(6,833

)

 

 

(7,561

)

Prepaid expenses and other assets

 

 

(102

)

 

 

2,592

 

Deferred cost of implementation services

 

 

488

 

 

 

1,289

 

Accounts payable

 

 

(1,752

)

 

 

(854

)

Accrued employee compensation

 

 

(2,541

)

 

 

1,482

 

Other accrued and long-term liabilities

 

 

(639

)

 

 

(1,085

)

Deferred revenue

 

 

6,386

 

 

 

8,875

 

Net cash used in operating activities

 

 

(642

)

 

 

(16,264

)

Cash Flows From Investing Activities:

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(165

)

 

 

(290

)

Acquisition of businesses, net of cash acquired

 

 

 

 

 

(47,773

)

Capitalization of software development costs

 

 

 

 

 

(335

)

Net cash used in investing activities

 

 

(165

)

 

 

(48,398

)

Cash Flows From Financing Activities:

 

 

 

 

 

 

 

 

Proceeds from exercise of stock options and issuance of employee stock purchase plan

 

 

3,008

 

 

 

2,457

 

Proceeds from term loan

 

 

49,588

 

 

 

48,686

 

Debt issuance costs

 

 

(145

)

 

 

(806

)

Principal payments on loan

 

 

(50,000

)

 

 

 

Early payment penalty

 

 

(1,500

)

 

 

 

Net cash provided by financing activities

 

 

951

 

 

 

50,337

 

Effect of exchange rate changes on cash and cash equivalents

 

 

(57

)

 

 

7

 

Net decrease in cash and cash equivalents

 

 

87

 

 

 

(14,318

)

Cash and cash equivalents

 

 

 

 

 

 

 

 

Beginning of period

 

 

57,558

 

 

 

66,149

 

End of period

 

$

57,645

 

 

$

51,831

 

 

 

 

 

 


 

Model N Inc.

 

Reconciliation of GAAP to Non-GAAP Operating Results

 

(in thousands, except per share amounts)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

 

Nine months ended June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Reconciliation from GAAP net loss to adjusted EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net loss:

 

$

(15,435

)

 

$

(10,435

)

 

$

(24,588

)

 

$

(30,525

)

Reversal of non-GAAP items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

12,030

 

 

 

2,487

 

 

 

19,312

 

 

 

6,935

 

Depreciation and amortization

 

 

1,983

 

 

 

2,373

 

 

 

6,410

 

 

 

5,866

 

Deferred revenue adjustment

 

 

 

 

 

1,710

 

 

 

627

 

 

 

3,810

 

Acquisition and integration related costs

 

 

 

 

 

711

 

 

 

 

 

 

5,476

 

Interest expense (income), net

 

 

4,478

 

 

 

1,442

 

 

 

7,350

 

 

 

2,789

 

Other expenses (income), net

 

 

(344

)

 

 

3

 

 

 

(306

)

 

 

77

 

(Benefit) provision for income taxes

 

 

345

 

 

 

234

 

 

 

150

 

 

 

(3,742

)

Adjusted EBITDA

 

$

3,057

 

 

$

(1,475

)

 

$

8,955

 

 

$

(9,314

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

 

Nine months ended June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Reconciliation from GAAP revenue to revenue before deferred revenue adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP revenue:

 

$

39,617

 

 

$

34,244

 

 

$

117,918

 

 

$

95,564

 

Deferred revenue adjustment (d)

 

 

 

 

 

1,710

 

 

 

627

 

 

 

3,810

 

Revenue before deferred revenue adjustment

 

$

39,617

 

 

$

35,954

 

 

$

118,545

 

 

$

99,374

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

 

Nine months ended June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Reconciliation from GAAP gross profit to non-GAAP gross profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP gross profit:

 

$

23,172

 

 

$

18,472

 

 

$

67,411

 

 

$

49,931

 

Reversal of non-GAAP expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation (a)

 

 

699

 

 

 

586

 

 

 

1,972

 

 

 

1,482

 

Amortization of intangible assets (b)

 

 

476

 

 

 

476

 

 

 

1,428

 

 

 

1,218

 

Acquisition and integration related expenses (c)

 

 

 

 

 

196

 

 

 

 

 

 

419

 

Deferred revenue adjustment (d)

 

 

 

 

 

1,710

 

 

 

627

 

 

 

3,810

 

Non-GAAP gross profit

 

$

24,347

 

 

$

21,440

 

 

$

71,438

 

 

$

56,860

 

Percentage of revenue before deferred revenue adjustment

 

 

61.5

%

 

 

59.6

%

 

 

60.3

%

 

 

57.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

 

Nine months ended June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Reconciliation from GAAP loss from operations to non-GAAP

   loss from operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net loss from operations:

 

$

(10,956

)

 

$

(8,756

)

 

$

(17,394

)

 

$

(31,401

)

Reversal of non-GAAP expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation (a)

 

 

12,030

 

 

 

2,487

 

 

 

19,312

 

 

 

6,935

 

Amortization of intangible assets (b)

 

 

1,381

 

 

 

1,418

 

 

 

4,181

 

 

 

3,211

 

Acquisition and integration related expenses (c)

 

 

 

 

 

711

 

 

 

 

 

 

5,476

 

Deferred revenue adjustment (d)

 

 

 

 

 

1,710

 

 

 

627

 

 

 

3,810

 

Non-GAAP income (loss) from operations

 

$

2,455

 

 

$

(2,430

)

 

$

6,726

 

 

$

(11,969

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

 

Nine months ended June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation between GAAP and non-GAAP net loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net loss:

 

$

(15,435

)

 

$

(10,435

)

 

$

(24,588

)

 

$

(30,525

)

Reversal of non-GAAP expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation (a)

 

 

12,030

 

 

 

2,487

 

 

 

19,312

 

 

 

6,935

 


 

Amortization of intangible assets (b)

 

 

1,381

 

 

 

1,418

 

 

 

4,181

 

 

 

3,211

 

Acquisition and integration related expenses (c)

 

 

 

 

 

711

 

 

 

 

 

 

5,476

 

Deferred revenue adjustment (d)

 

 

 

 

 

1,710

 

 

 

627

 

 

 

3,810

 

Deferred tax valuation allowances (f)

 

 

 

 

 

 

 

 

 

 

 

(4,165

)

Non-GAAP net income (loss) attributable to Model N Inc.

   common stockholders

 

$

(2,024

)

 

$

(4,109

)

 

$

(468

)

 

$

(15,258

)

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation between GAAP and non-GAAP net loss per share attributable to Model N Inc.

   common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares used in computing GAAP dilutive net loss per share

 

 

30,749

 

 

 

28,936

 

 

 

30,042

 

 

 

28,464

 

GAAP dilutive net loss per share attributable to Model N Inc.

   common stockholders

 

$

(0.50

)

 

$

(0.36

)

 

$

(0.82

)

 

$

(1.07

)

Non-GAAP net income (loss) per share attributable to Model N Inc.

   common stockholders

 

 

(0.07

)

 

 

(0.14

)

 

 

(0.02

)

 

 

(0.54

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

 

Nine months ended June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Amortization of intangibles assets recorded in the statement of operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SaaS and maintenance

 

$

476

 

 

$

476

 

 

 

1,428

 

 

 

1,218

 

License and implementation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total amortization of intangibles assets in cost of revenue (b)

 

 

476

 

 

 

476

 

 

 

1,428

 

 

 

1,218

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

905

 

 

 

942

 

 

 

2,753

 

 

 

1,993

 

General and administrative

 

 

 

 

 

 

 

 

 

 

 

 

Total amortization of intangibles assets in operating expense (b)

 

 

905

 

 

 

942

 

 

 

2,753

 

 

 

1,993

 

Total amortization of intangibles assets (b)

 

$

1,381

 

 

$

1,418

 

 

$

4,181

 

 

$

3,211

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

 

Nine months ended June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Stock-based compensation recorded in the statement of operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SaaS and maintenance

 

$

326

 

 

$

290