[August 01, 2013] |
|
Silver Spring Networks Reports Second Quarter 2013 Financial Results
REDWOOD CITY, Calif. --(Business Wire)--
Silver Spring Networks, Inc. (NYSE: SSNI) today announced preliminary
unaudited financial results for its second quarter ended June 30, 2013.
Non-GAAP revenue (billings) for the second quarter was $86.5 million, up
17% year-over-year, driven by growth in service and product revenue.
GAAP revenue was $103.5 million as compared to $51.6 million a year ago.
Non-GAAP gross profit margin was 30.1%, up sequentially from 29.2% in Q1
and down as expected when compared to 33.6% a year ago due to changes in
non-GAAP revenue mix. GAAP gross profit margin was 46.6% as compared to
12.9% a year ago.
Non-GAAP net loss was $4.5 million as compared with a non-GAAP net loss
of $1.1 million a year ago. GAAP net income was $9.5 million as compared
with a GAAP net loss of $23.4 million a year ago.
Silver Spring ended the quarter with $125 million in cash.
"We had a strong second quarter with 17% growth year-over-year and
delivered innovative new products," said Scott Lang, Chairman,
President, and Chief Executive Officer. "We continue to execute on our
technology roadmap delivering solutions to our customers that enable
them to unlock even greater value from our leading networking platform."
Business Highlights (through August 1, 2013)
-
17 million cumulative network endpoints delivered from inception
through June 30, 2013 - up 22% from a year ago.
-
SmartCo agreement to deploy networking platform in New Zealand unlocking
benefits for lines companies, energy retailers and consumers in a
disaggregated energy market.
-
Snohomish County Public Utility District contract for distribution
automation solution.
-
Modesto Irrigation District selects advanced Conservation Voltage
Reduction solution from Silver Spring and DVI, a subsidiary of
Dominion.
-
Oklahoma Gas and Electric expands demand response program by adding
UtilityIQ Demand Optimizer application to the platform.
-
EVESA, first customer for new street light solution in the City of
Paris.
-
Pacific Gas and Electric renews managed services agreement for five
years.
Conference Call
Silver Spring will host a conference call today at 1:30 pm PT (4:30 pm
ET) to review its results for the second quarter ended June 30, 2013 and
its outlook for the future. During the course of this call, Silver
Spring may also disclose material developments affecting its business
and/or financial performance. Listeners may access the conference call
live at 800-768-6490 (U.S.) or 785-830-7987 (International), access code
8763127 or via webcast at http://ir.silverspringnet.com.
About Silver Spring Networks
Silver Spring Networks is a leading networking platform and solutions
provider for smart energy networks. Silver Spring's pioneering IPv6
networking platform, with 17 million Silver Spring enabled devices
delivered, is connecting utilities to homes and business throughout the
world with the goal of achieving greater energy efficiency for the
planet. Silver Spring's innovative solutions enable utilities to gain
operational efficiencies, improve grid reliability, and empower
consumers to monitor and manage energy consumption. Silver Spring
Networks' customers include major utilities around the globe such as
Baltimore Gas & Electric, CitiPower & Powercor, Commonwealth Edison, CPS
Energy, Florida Power & Light, Jemena Electricity Networks Limited,
Pacific Gas & Electric, Pepco Holdings, Progress Energy, and Singapore
Power, among others. To learn more, please visit www.silverspringnet.com.
Non-GAAP Financial Measures
Silver Spring believes that its results of operations under generally
accepted accounting principles, or GAAP, when considered in isolation,
may only provide limited insight into the performance of its business in
any given period. As a result, Silver Spring manages its business, makes
planning decisions, evaluates its performance and allocates resources by
assessing non-GAAP measures such as non-GAAP revenue (billings), cost of
non-GAAP revenue (billings), non-GAAP gross profit (loss), non-GAAP
operating loss, non-GAAP net loss, non-GAAP earnings (loss) per share,
and adjusted EBITDA, in addition to other financial measures presented
in accordance with GAAP. Silver Spring believes that these non-GAAP
measures offer valuable supplemental information regarding the
performance of its business, and will help investors better understand
the sales volumes, and gross margin and profitability trends, as well as
the cash flow characteristics, of its business. These non-GAAP measures
should not be considered in isolation from, are not a substitute for,
and do not purport to be an alternative to, revenue, cost of revenue,
gross profit (loss), operating loss, net loss, loss per share or any
other performance measure derived in accordance with GAAP. Silver Spring
may consider whether other significant non-recurring items that arise in
the future should also be excluded in calculating the non-GAAP financial
measures it uses.
Non-GAAP revenue (billings) represents amounts invoiced for products for
which ownership, typically evidenced by title and risk of loss, has
transferred or services that have been provided to the customer, and for
which payment is expected to be made in accordance with normal payment
terms. Non-GAAP revenue excludes amounts for undelivered products,
services to be performed in the future, and amounts paid or payable to
customers. Non-GAAP revenue is initially recorded as deferred revenue
and is recognized as GAAP revenue when all revenue recognition criteria
have been met under Silver Spring's accounting policies as described in
Silver Spring's filings with the Securities and Exchange Commission.
Silver Spring reconciles revenue to billings by adding revenue to the
change in deferred revenue in a given period.
Cost of non-GAAP revenue (billings) represents the cost associated with
products and services that have been delivered to the customer,
excluding stock-based compensation and amortization of intangibles. Cost
of product shipments for which revenue is not recognized in the period
incurred is recorded as deferred cost of revenue. Deferred cost of
revenue is expensed in the statement of operations as cost of revenue
when the corresponding revenue is recognized. Costs related to services
are expensed in the period incurred. Silver Spring reconciles cost of
revenue to non-GAAP cost of revenue by adding cost of revenue to the
change in deferred cost of revenue, less stock-based compensation and
amortization of intangibles included in cost of revenue, in a given
period.
Non GAAP gross profit (loss) is the difference between non-GAAP revenue
and cost of non-GAAP revenue.
Non-GAAP operating loss represents operating loss adjusted for non-GAAP
revenue (billings) and cost of non-GAAP revenue (billings) and excludes
expenses related to the amortization of intangible assets, legal
settlements, and stock-based compensation.
Non-GAAP net loss represents net loss adjusted for non-GAAP revenue and
cost of non-GAAP revenue, and excludes expenses related to the
amortization of intangible assets, legal settlements, stock-based
compensation, changes in fair value of preferred stock warrant
liabilities and embedded derivatives, and loss on extinguishment of
promissory notes.
Non-GAAP earnings (loss) per share represents non-GAAP net loss divided
by weighted average shares outstanding for the period.
Adjusted EBITDA is net loss adjusted for changes in deferred revenue and
deferred cost of revenue, other (income) expense, net, provision for
income taxes, depreciation and amortization, stock-based compensation
and certain other items management believes affect the comparability of
operating results.
Forward-Looking Statements
This press release contains forward-looking statements that involve
risks and uncertainties. These forward-looking statements include
statements regarding the momentum in Silver Spring Networks' business,
future growth and future financial results. Statements including words
such as "anticipate", "believe", "estimate" or "expect" and statements
in the future tense are forward-looking statements. These
forward-looking statements are preliminary estimates and expectations
based on current information and are subject to business and economic
risks and uncertainties that could cause actual events or actual future
results to differ materially from the expectations set forth in the
forward-looking statements. Important factors that could cause results
to differ materially from the statements herein include: general
economic risks; specific economic risks in different geographies and
among different industries; failure to maintain or increase renewals and
increase business from existing customers; uncertainties around
continued success in sales growth and market share gains; lengthy sales
cycles with no assurances that a prospective customer will select Silver
Spring's products and services; amounts included in backlog may not
result in billings or revenue; adverse publicity about, or consumer or
political opposition to, the smart grid; security breaches involving
smart grid products or services; the ability to integrate technology
into third-party devices and Silver Spring's relationship with
third-party manufacturers; execution risks related to new product
introductions and innovation; the ability to attract and retain
personnel, including members of Silver Spring's management team; changes
in strategy; technological changes that make Silver Spring's products
and services less competitive; dependence on a limited number of key
suppliers and customers; competition, particularly from larger companies
with more resources than Silver Spring; risks related to retention of
management; international business uncertainties; the ability to acquire
and integrate other businesses; and other risk factors set forth from
time to time in Silver Spring's filings with the SEC, copies of which
are available free of charge at the SEC's website at www.sec.gov.
All forward-looking statements in this press release reflect Silver
Spring's expectations as of August 1, 2013. Silver Spring undertakes no
obligation, and expressly disclaims any obligation, to update any
forward-looking statements in this press release in light of new
information or future events. In addition, the preliminary financial
results set forth in this press release are estimates based on
information currently available to Silver Spring. While Silver
Spring believes these estimates are meaningful, they could differ from
the actual amounts that Silver Spring ultimately reports in its
Quarterly Report on Form 10-Q for the fiscal quarter ended June 30,
2013. Silver Spring assumes no obligation and does not intend to update
these estimates prior to filing its Form 10-Q for the fiscal quarter
ended June 30, 2013.
|
SILVER SPRING NETWORKS
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands, except per share data)
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Product revenue
|
|
|
$
|
47,996
|
|
|
|
$
|
43,958
|
|
|
|
$
|
89,716
|
|
|
|
$
|
91,898
|
|
Service revenue
|
|
|
|
55,514
|
|
|
|
|
7,626
|
|
|
|
|
67,497
|
|
|
|
|
15,140
|
|
Net revenue
|
|
|
|
103,510
|
|
|
|
|
51,584
|
|
|
|
|
157,213
|
|
|
|
|
107,038
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Product cost of revenue
|
|
|
|
39,565
|
|
|
|
|
32,132
|
|
|
|
|
65,308
|
|
|
|
|
65,512
|
|
Service cost of revenue
|
|
|
|
15,695
|
|
|
|
|
12,782
|
|
|
|
|
33,521
|
|
|
|
|
24,789
|
|
Total cost of revenue
|
|
|
|
55,260
|
|
|
|
|
44,914
|
|
|
|
|
98,829
|
|
|
|
|
90,301
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
48,250
|
|
|
|
|
6,670
|
|
|
|
|
58,384
|
|
|
|
|
16,737
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
|
18,752
|
|
|
|
|
15,422
|
|
|
|
|
43,871
|
|
|
|
|
31,392
|
|
Sales and marketing
|
|
|
|
8,637
|
|
|
|
|
6,619
|
|
|
|
|
19,090
|
|
|
|
|
14,910
|
|
General and administrative
|
|
|
|
10,879
|
|
|
|
|
6,920
|
|
|
|
|
25,015
|
|
|
|
|
14,425
|
|
Total operating expenses
|
|
|
|
38,268
|
|
|
|
|
28,961
|
|
|
|
|
87,976
|
|
|
|
|
60,727
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
9,982
|
|
|
|
|
(22,291
|
)
|
|
|
|
(29,592
|
)
|
|
|
|
(43,990
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
(184
|
)
|
|
|
|
(1,229
|
)
|
|
|
|
(1,236
|
)
|
|
|
|
(2,153
|
)
|
Conversion of promissory notes and remeasurement of warrants and
derivatives
|
|
|
|
-
|
|
|
|
|
151
|
|
|
|
|
(23,676
|
)
|
|
|
|
4,400
|
|
Other income (expense), net
|
|
|
|
(184
|
)
|
|
|
|
(1,078
|
)
|
|
|
|
(24,912
|
)
|
|
|
|
2,247
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before provision for income taxes
|
|
|
|
9,798
|
|
|
|
|
(23,369
|
)
|
|
|
|
(54,504
|
)
|
|
|
|
(41,743
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
|
328
|
|
|
|
|
38
|
|
|
|
|
392
|
|
|
|
|
96
|
|
Net income (loss)
|
|
|
$
|
9,470
|
|
|
|
$
|
(23,407
|
)
|
|
|
$
|
(54,896
|
)
|
|
|
$
|
(41,839
|
)
|
Deemed dividend to convertible preferred stockholders
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(105,000
|
)
|
|
|
|
-
|
|
Net income (loss) attributable to common stockholders
|
|
|
$
|
9,470
|
|
|
|
$
|
(23,407
|
)
|
|
|
$
|
(159,896
|
)
|
|
|
$
|
(41,839
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) per share attributable to common
stockholders
|
|
|
$
|
0.20
|
|
|
|
$
|
(6.38
|
)
|
|
|
$
|
(5.58
|
)
|
|
|
$
|
(11.45
|
)
|
Diluted net income (loss) per share attributable to common
stockholders
|
|
|
$
|
0.19
|
|
|
|
$
|
(6.38
|
)
|
|
|
$
|
(5.58
|
)
|
|
|
$
|
(11.45
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in computation
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
46,599
|
|
|
|
|
3,669
|
|
|
|
|
28,637
|
|
|
|
|
3,655
|
|
Diluted
|
|
|
|
48,995
|
|
|
|
|
3,669
|
|
|
|
|
28,637
|
|
|
|
|
3,655
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP results (in thousands, except per share data)
|
The following tables reconcile the Company's net income (loss) and
income (loss) per share as presented in its unaudited Condensed
Consolidated Statements of Operations and prepared in accordance
with GAAP to its non-GAAP net income (loss) and non-GAAP income
(loss) per share.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
Net income (loss)
|
|
|
$
|
9,470
|
|
|
|
$
|
(23,407
|
)
|
|
|
$
|
(54,896
|
)
|
|
|
$
|
(41,839
|
)
|
Change in deferred revenue, net of foreign currency translation
|
|
|
|
(17,059
|
)
|
|
|
|
22,449
|
|
|
|
|
3,009
|
|
|
|
|
26,498
|
|
Change in deferred cost of revenue, net of foreign currency
translation
|
|
|
|
(7,763
|
)
|
|
|
|
(4,903
|
)
|
|
|
|
(23,186
|
)
|
|
|
|
2,991
|
|
Amortization of intangibles in cost of revenue
|
|
|
|
48
|
|
|
|
|
48
|
|
|
|
|
96
|
|
|
|
|
96
|
|
Conversion of promissory notes and remeasurement of warrants and
derivatives
|
|
|
|
-
|
|
|
|
|
(151
|
)
|
|
|
|
23,676
|
|
|
|
|
(4,400
|
)
|
Convertible notes accretion / interest
|
|
|
|
-
|
|
|
|
|
1,012
|
|
|
|
|
935
|
|
|
|
|
1,718
|
|
Stock-based compensation
|
|
|
|
10,845
|
|
|
|
|
3,889
|
|
|
|
|
37,513
|
|
|
|
|
8,606
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income (loss)
|
|
|
$
|
(4,459
|
)
|
|
|
$
|
(1,063
|
)
|
|
|
$
|
(12,853
|
)
|
|
|
$
|
(6,330
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP loss per share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic & diluted
|
|
|
$
|
(0.10
|
)
|
|
|
$
|
(0.29
|
)
|
|
|
$
|
(0.45
|
)
|
|
|
$
|
(1.73
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in computation
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic & diluted
|
|
|
|
46,599
|
|
|
|
|
3,669
|
|
|
|
|
28,637
|
|
|
|
|
3,655
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SILVER SPRING NETWORKS, INC.
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In thousands, except par values)
|
|
|
|
|
June 30,
|
|
|
December 31,
|
|
|
|
2013
|
|
|
2012 (a)
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
124,970
|
|
|
|
$
|
72,646
|
|
Accounts receivable
|
|
|
|
69,711
|
|
|
|
|
56,528
|
|
Inventory
|
|
|
|
12,620
|
|
|
|
|
7,731
|
|
Deferred cost of revenue
|
|
|
|
114,208
|
|
|
|
|
45,298
|
|
Prepaid expenses and other current assets
|
|
|
|
6,563
|
|
|
|
|
3,456
|
|
Total current assets
|
|
|
|
328,072
|
|
|
|
|
185,659
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
12,951
|
|
|
|
|
12,701
|
|
Deferred cost of revenue, non-current
|
|
|
|
154,028
|
|
|
|
|
199,865
|
|
Deferred tax assets, non-current
|
|
|
|
8,029
|
|
|
|
|
8,265
|
|
Other long-term assets
|
|
|
|
3,805
|
|
|
|
|
11,254
|
|
TOTAL ASSETS
|
|
|
$
|
506,885
|
|
|
|
$
|
417,744
|
|
|
|
|
|
|
|
|
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
35,636
|
|
|
|
$
|
28,104
|
|
Accrued liabilities
|
|
|
|
21,054
|
|
|
|
|
14,831
|
|
Deferred revenue
|
|
|
|
192,530
|
|
|
|
|
89,838
|
|
Current portion of capital lease obligations
|
|
|
|
1,449
|
|
|
|
|
1,647
|
|
Deferred tax liability
|
|
|
|
7,897
|
|
|
|
|
7,897
|
|
Total current liabilities
|
|
|
|
258,566
|
|
|
|
|
142,317
|
|
|
|
|
|
|
|
|
Deferred revenue, non-current
|
|
|
|
318,192
|
|
|
|
|
418,218
|
|
Preferred stock warrant liability
|
|
|
|
-
|
|
|
|
|
11,261
|
|
Convertible promissory notes and embedded derivatives
|
|
|
|
-
|
|
|
|
|
56,319
|
|
Other liabilities
|
|
|
|
16,866
|
|
|
|
|
18,412
|
|
|
|
|
|
|
|
|
Convertible preferred stock:
|
|
|
|
|
|
|
$0.001 par value; no shares authorized, issued and outstanding, and
aggregate liquidation preference of $0 as of June 30, 2013; 26,072
shares authorized, 22,366 shares issued and outstanding, and
aggregate liquidation preference of $381,338 as of December 31, 2012
|
|
|
|
-
|
|
|
|
|
270,725
|
|
|
|
|
|
|
|
|
Stockholders' equity (deficit):
|
|
|
|
|
|
|
Preferred stock, $0.001 par value, 10,000 shares authorized and no
shares issued or outstanding as of June 30, 2013; no shares
authorized, issued or outstanding,as of December 31, 2012
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, $0.001 par value; 1,000,000 shares authorized, 46,638
shares issued and outstanding as of June 30, 2013; 80,000 shares
authorized and 3,764 shares issued and outstanding as of December
31, 2012
|
|
|
|
46
|
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional paid-in capital
|
|
|
|
518,594
|
|
|
|
|
51,078
|
|
Accumulated other comprehensive income (loss)
|
|
|
|
(29
|
)
|
|
|
|
(136
|
)
|
Accumulated deficit
|
|
|
|
(605,350
|
)
|
|
|
|
(550,454
|
)
|
Total stockholders' deficit
|
|
|
|
(86,739
|
)
|
|
|
|
(499,508
|
)
|
TOTAL LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS'
DEFICIT
|
|
|
$
|
506,885
|
|
|
|
$
|
417,744
|
|
|
|
|
|
|
|
|
(a) Derived from audited consolidated financial statements
|
|
|
SILVER SPRING NETWORKS
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
|
(In thousands)
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
9,470
|
|
|
|
$
|
(23,407
|
)
|
|
|
$
|
(54,896
|
)
|
|
|
$
|
(41,839
|
)
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
1,689
|
|
|
|
|
1,857
|
|
|
|
|
3,366
|
|
|
|
|
3,644
|
|
Stock-based compensation
|
|
|
|
10,845
|
|
|
|
|
3,889
|
|
|
|
|
37,513
|
|
|
|
|
8,606
|
|
Conversion of promissory notes and remeasurement of warrants and
derivatives
|
|
|
|
-
|
|
|
|
|
(151
|
)
|
|
|
|
23,676
|
|
|
|
|
(4,400
|
)
|
Other non-cash adjustments
|
|
|
|
472
|
|
|
|
|
1,261
|
|
|
|
|
1,452
|
|
|
|
|
1,656
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
(19,722
|
)
|
|
|
|
(17,573
|
)
|
|
|
|
(13,183
|
)
|
|
|
|
(16,756
|
)
|
Inventory
|
|
|
|
(443
|
)
|
|
|
|
(2,434
|
)
|
|
|
|
(5,007
|
)
|
|
|
|
(3,255
|
)
|
Prepaid expenses and other current assets
|
|
|
|
(2,066
|
)
|
|
|
|
(531
|
)
|
|
|
|
(3,187
|
)
|
|
|
|
(376
|
)
|
Deferred cost of revenue
|
|
|
|
(7,663
|
)
|
|
|
|
(4,903
|
)
|
|
|
|
(23,073
|
)
|
|
|
|
2,991
|
|
Other assets
|
|
|
|
40
|
|
|
|
|
(810
|
)
|
|
|
|
2,362
|
|
|
|
|
(1,454
|
)
|
Accounts payable
|
|
|
|
9,010
|
|
|
|
|
6,472
|
|
|
|
|
7,373
|
|
|
|
|
3,210
|
|
Accrued liabilities
|
|
|
|
1,349
|
|
|
|
|
(1,006
|
)
|
|
|
|
(538
|
)
|
|
|
|
(1,671
|
)
|
Customer deposits
|
|
|
|
(5
|
)
|
|
|
|
(917
|
)
|
|
|
|
(246
|
)
|
|
|
|
(6,808
|
)
|
Deferred revenue
|
|
|
|
(17,455
|
)
|
|
|
|
22,449
|
|
|
|
|
2,666
|
|
|
|
|
26,498
|
|
Other liabilities
|
|
|
|
431
|
|
|
|
|
1,067
|
|
|
|
|
(1,239
|
)
|
|
|
|
1,873
|
|
Net cash used in operating activities
|
|
|
|
(14,048
|
)
|
|
|
|
(14,737
|
)
|
|
|
|
(22,961
|
)
|
|
|
|
(28,081
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease in restricted cash
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
140
|
|
Purchases of property and equipment
|
|
|
|
(1,139
|
)
|
|
|
|
(1,735
|
)
|
|
|
|
(2,462
|
)
|
|
|
|
(3,133
|
)
|
Net cash used in investing activities
|
|
|
|
(1,139
|
)
|
|
|
|
(1,735
|
)
|
|
|
|
(2,462
|
)
|
|
|
|
(2,993
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment upon termination of preferred stock warrants of a related
party
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(12,000
|
)
|
|
|
|
-
|
|
Proceeds from initial public offering, net of offering costs
|
|
|
|
(1,533
|
)
|
|
|
|
-
|
|
|
|
|
84,705
|
|
|
|
|
-
|
|
Proceeds from private placement of common stock with a related party
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
12,000
|
|
|
|
|
-
|
|
Payments on capital lease obligations
|
|
|
|
(491
|
)
|
|
|
|
(250
|
)
|
|
|
|
(944
|
)
|
|
|
|
(508
|
)
|
Proceeds from sale-leaseback transaction
|
|
|
|
-
|
|
|
|
|
960
|
|
|
|
|
-
|
|
|
|
|
1,676
|
|
Proceeds from issuance of convertible notes, net of paid issuance
costs
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
28,993
|
|
Proceeds from issuance of common stock, net of repurchases
|
|
|
|
176
|
|
|
|
|
107
|
|
|
|
|
190
|
|
|
|
|
402
|
|
Taxes paid related to net share settlement of equity awards
|
|
|
|
(349
|
)
|
|
|
|
-
|
|
|
|
|
(6,204
|
)
|
|
|
|
-
|
|
Net cash provided by financing activities
|
|
|
|
(2,197
|
)
|
|
|
|
817
|
|
|
|
|
77,747
|
|
|
|
|
30,563
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
|
(17,384
|
)
|
|
|
|
(15,655
|
)
|
|
|
|
52,324
|
|
|
|
|
(511
|
)
|
Cash and cash equivalents - beginning of period
|
|
|
|
142,354
|
|
|
|
|
86,831
|
|
|
|
|
72,646
|
|
|
|
|
71,687
|
|
Cash and cash equivalents - end of period
|
|
|
$
|
124,970
|
|
|
|
$
|
71,176
|
|
|
|
$
|
124,970
|
|
|
|
$
|
71,176
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SILVER SPRING NETWORKS, INC.
|
UNAUDITED RECONCILIATION OF NET REVENUE BETWEEN GAAP AND NON-GAAP
|
(in thousands, except percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2
|
|
|
Q3
|
|
|
Q4
|
|
|
Q1
|
|
|
Q2
|
|
|
YoY%
|
TYPE
|
|
|
CY12
|
|
|
CY12
|
|
|
CY12
|
|
|
CY13
|
|
|
CY13
|
|
|
Change
|
GAAP net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product net revenue
|
|
|
$
|
43,958
|
|
|
|
$
|
30,394
|
|
|
|
$
|
40,332
|
|
|
|
$
|
41,720
|
|
|
|
$
|
47,996
|
|
|
|
9
|
%
|
Service net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed services and SaaS
|
|
|
|
3,992
|
|
|
|
|
4,756
|
|
|
|
|
4,018
|
|
|
|
|
4,559
|
|
|
|
|
37,508
|
|
|
|
840
|
%
|
Professional
|
|
|
|
3,634
|
|
|
|
|
4,478
|
|
|
|
|
5,721
|
|
|
|
|
7,424
|
|
|
|
|
18,006
|
|
|
|
395
|
%
|
Total service net revenue
|
|
|
$
|
7,626
|
|
|
|
$
|
9,234
|
|
|
|
$
|
9,739
|
|
|
|
$
|
11,983
|
|
|
|
$
|
55,514
|
|
|
|
628
|
%
|
Total GAAP net revenue
|
|
|
$
|
51,584
|
|
|
|
$
|
39,628
|
|
|
|
$
|
50,071
|
|
|
|
$
|
53,703
|
|
|
|
$
|
103,510
|
|
|
|
101
|
%
|
% Product
|
|
|
|
85
|
%
|
|
|
|
77
|
%
|
|
|
|
81
|
%
|
|
|
|
78
|
%
|
|
|
|
46
|
%
|
|
|
|
% Service
|
|
|
|
15
|
%
|
|
|
|
23
|
%
|
|
|
|
19
|
%
|
|
|
|
22
|
%
|
|
|
|
54
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in deferred net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in deferred product revenue
|
|
|
$
|
13,710
|
|
|
|
$
|
37,545
|
|
|
|
$
|
25,793
|
|
|
|
$
|
14,702
|
|
|
|
$
|
17,905
|
|
|
|
|
Change in deferred service revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed services and SaaS
|
|
|
|
4,329
|
|
|
|
|
3,555
|
|
|
|
|
6,441
|
|
|
|
|
3,825
|
|
|
|
|
(28,245
|
)
|
|
|
|
Professional
|
|
|
|
4,410
|
|
|
|
|
4,493
|
|
|
|
|
3,271
|
|
|
|
|
1,541
|
|
|
|
|
(6,719
|
)
|
|
|
|
Total change in deferred service revenue
|
|
|
|
8,739
|
|
|
|
|
8,048
|
|
|
|
|
9,712
|
|
|
|
|
5,366
|
|
|
|
|
(34,964
|
)
|
|
|
|
Total change in deferred revenue
|
|
|
$
|
22,449
|
|
|
|
$
|
45,593
|
|
|
|
$
|
35,505
|
|
|
|
$
|
20,068
|
|
|
|
$
|
(17,059
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product net revenue
|
|
|
$
|
57,668
|
|
|
|
$
|
67,939
|
|
|
|
$
|
66,125
|
|
|
|
$
|
56,422
|
|
|
|
$
|
65,901
|
|
|
|
14
|
%
|
Service net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed services and SaaS
|
|
|
|
8,321
|
|
|
|
|
8,311
|
|
|
|
|
10,459
|
|
|
|
|
8,384
|
|
|
|
|
9,263
|
|
|
|
11
|
%
|
Professional
|
|
|
|
8,044
|
|
|
|
|
8,971
|
|
|
|
|
8,992
|
|
|
|
|
8,965
|
|
|
|
|
11,287
|
|
|
|
40
|
%
|
Total service net revenue
|
|
|
$
|
16,365
|
|
|
|
$
|
17,282
|
|
|
|
$
|
19,451
|
|
|
|
$
|
17,349
|
|
|
|
$
|
20,550
|
|
|
|
26
|
%
|
Total non-GAAP net revenue
|
|
|
$
|
74,033
|
|
|
|
$
|
85,221
|
|
|
|
$
|
85,576
|
|
|
|
$
|
73,771
|
|
|
|
$
|
86,451
|
|
|
|
17
|
%
|
% Product
|
|
|
|
78
|
%
|
|
|
|
80
|
%
|
|
|
|
77
|
%
|
|
|
|
76
|
%
|
|
|
|
76
|
%
|
|
|
|
% Service
|
|
|
|
22
|
%
|
|
|
|
20
|
%
|
|
|
|
23
|
%
|
|
|
|
24
|
%
|
|
|
|
24
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOLUTION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advanced metering infrastructure
|
|
|
$
|
45,303
|
|
|
|
$
|
34,086
|
|
|
|
$
|
46,250
|
|
|
|
$
|
45,149
|
|
|
|
$
|
97,598
|
|
|
|
115
|
%
|
Distribution automation and demand side management
|
|
|
|
6,281
|
|
|
|
|
5,542
|
|
|
|
|
3,821
|
|
|
|
|
8,554
|
|
|
|
|
5,912
|
|
|
|
-6
|
%
|
Total GAAP net revenue
|
|
|
$
|
51,584
|
|
|
|
$
|
39,628
|
|
|
|
$
|
50,071
|
|
|
|
$
|
53,703
|
|
|
|
$
|
103,510
|
|
|
|
101
|
%
|
% Advanced metering infrastructure
|
|
|
|
88
|
%
|
|
|
|
86
|
%
|
|
|
|
92
|
%
|
|
|
|
84
|
%
|
|
|
|
94
|
%
|
|
|
|
% Distribution automation and demand side management
|
|
|
|
12
|
%
|
|
|
|
14
|
%
|
|
|
|
8
|
%
|
|
|
|
16
|
%
|
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in deferred net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advanced metering infrastructure
|
|
|
$
|
22,238
|
|
|
|
$
|
44,880
|
|
|
|
$
|
32,208
|
|
|
|
$
|
23,219
|
|
|
|
$
|
(21,380
|
)
|
|
|
|
Distribution automation and demand side management
|
|
|
|
211
|
|
|
|
|
713
|
|
|
|
|
3,297
|
|
|
|
|
(3,151
|
)
|
|
|
|
4,321
|
|
|
|
|
Total change in deferred net revenue
|
|
|
$
|
22,449
|
|
|
|
$
|
45,593
|
|
|
|
$
|
35,505
|
|
|
|
$
|
20,068
|
|
|
|
$
|
(17,059
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advanced metering infrastructure
|
|
|
$
|
67,541
|
|
|
|
$
|
78,966
|
|
|
|
$
|
78,458
|
|
|
|
$
|
68,368
|
|
|
|
$
|
76,218
|
|
|
|
13
|
%
|
Distribution automation and demand side management
|
|
|
|
6,492
|
|
|
|
|
6,255
|
|
|
|
|
7,118
|
|
|
|
|
5,403
|
|
|
|
|
10,233
|
|
|
|
58
|
%
|
Total Non-GAAP net revenue
|
|
|
$
|
74,033
|
|
|
|
$
|
85,221
|
|
|
|
$
|
85,576
|
|
|
|
$
|
73,771
|
|
|
|
$
|
86,451
|
|
|
|
17
|
%
|
% Advanced metering infrastructure
|
|
|
|
91
|
%
|
|
|
|
93
|
%
|
|
|
|
92
|
%
|
|
|
|
93
|
%
|
|
|
|
88
|
%
|
|
|
|
% Distribution automation and demand side management
|
|
|
|
9
|
%
|
|
|
|
7
|
%
|
|
|
|
8
|
%
|
|
|
|
7
|
%
|
|
|
|
12
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GEOGRAPHY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
$
|
47,415
|
|
|
|
$
|
35,110
|
|
|
|
$
|
46,421
|
|
|
|
$
|
50,747
|
|
|
|
$
|
94,516
|
|
|
|
99
|
%
|
International
|
|
|
|
4,169
|
|
|
|
|
4,518
|
|
|
|
|
3,650
|
|
|
|
|
2,956
|
|
|
|
|
8,994
|
|
|
|
116
|
%
|
Total GAAP net revenue
|
|
|
$
|
51,584
|
|
|
|
$
|
39,628
|
|
|
|
$
|
50,071
|
|
|
|
$
|
53,703
|
|
|
|
$
|
103,510
|
|
|
|
101
|
%
|
% United States
|
|
|
|
92
|
%
|
|
|
|
89
|
%
|
|
|
|
93
|
%
|
|
|
|
94
|
%
|
|
|
|
91
|
%
|
|
|
|
% International
|
|
|
|
8
|
%
|
|
|
|
11
|
%
|
|
|
|
7
|
%
|
|
|
|
6
|
%
|
|
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in deferred net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
$
|
16,183
|
|
|
|
$
|
38,325
|
|
|
|
$
|
21,927
|
|
|
|
$
|
8,839
|
|
|
|
$
|
(21,032
|
)
|
|
|
|
International
|
|
|
|
6,266
|
|
|
|
|
7,268
|
|
|
|
|
13,578
|
|
|
|
|
11,229
|
|
|
|
|
3,973
|
|
|
|
|
Total change in deferred net revenue
|
|
|
$
|
22,449
|
|
|
|
$
|
45,593
|
|
|
|
$
|
35,505
|
|
|
|
$
|
20,068
|
|
|
|
$
|
(17,059
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
$
|
63,598
|
|
|
|
$
|
73,435
|
|
|
|
$
|
68,348
|
|
|
|
$
|
59,586
|
|
|
|
$
|
73,484
|
|
|
|
16
|
%
|
International
|
|
|
|
10,435
|
|
|
|
|
11,786
|
|
|
|
|
17,228
|
|
|
|
|
14,185
|
|
|
|
|
12,967
|
|
|
|
24
|
%
|
Total non-GAAP net revenue
|
|
|
$
|
74,033
|
|
|
|
$
|
85,221
|
|
|
|
$
|
85,576
|
|
|
|
$
|
73,771
|
|
|
|
$
|
86,451
|
|
|
|
17
|
%
|
% United States
|
|
|
|
86
|
%
|
|
|
|
86
|
%
|
|
|
|
80
|
%
|
|
|
|
81
|
%
|
|
|
|
85
|
%
|
|
|
|
% International
|
|
|
|
14
|
%
|
|
|
|
14
|
%
|
|
|
|
20
|
%
|
|
|
|
19
|
%
|
|
|
|
15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SILVER SPRING NETWORKS, INC.
|
UNAUDITED SUPPLEMENTAL FINANCIAL INFORMATION
|
(in thousands, except percentages and headcount)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2
|
|
|
Q3
|
|
|
Q4
|
|
|
Q1
|
|
|
Q2
|
|
|
YoY%
|
|
|
|
CY12
|
|
|
CY12
|
|
|
CY12
|
|
|
CY13
|
|
|
CY13
|
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOW DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flow
|
|
|
$
|
(14,737
|
)
|
|
|
$
|
(10,199
|
)
|
|
|
$
|
14,002
|
|
|
|
$
|
(8,913
|
)
|
|
|
$
|
(14,048
|
)
|
|
|
5
|
%
|
Operating cash flow - TTM
|
|
|
|
(34,008
|
)
|
|
|
|
(43,330
|
)
|
|
|
|
(24,278
|
)
|
|
|
|
(19,847
|
)
|
|
|
|
(19,158
|
)
|
|
|
44
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and short-term investments
|
|
|
$
|
71,176
|
|
|
|
$
|
59,624
|
|
|
|
$
|
72,646
|
|
|
|
$
|
142,354
|
|
|
|
$
|
124,970
|
|
|
|
76
|
%
|
Deferred net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of quarter
|
|
|
|
426,958
|
|
|
|
|
472,551
|
|
|
|
|
508,056
|
|
|
|
|
528,176
|
|
|
|
|
510,722
|
|
|
|
|
Less: Beginning of quarter
|
|
|
|
(404,509
|
)
|
|
|
|
(426,958
|
)
|
|
|
|
(472,551
|
)
|
|
|
|
(508,056
|
)
|
|
|
|
(528,176
|
)
|
|
|
|
Foreign currency translation adjustment
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(52
|
)
|
|
|
|
395
|
|
|
|
|
Change in deferred net revenue, net of foreign currency translation
|
|
|
$
|
22,449
|
|
|
|
$
|
45,593
|
|
|
|
$
|
35,505
|
|
|
|
$
|
20,068
|
|
|
|
$
|
(17,059
|
)
|
|
|
|
Deferred cost of revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of quarter
|
|
|
|
203,312
|
|
|
|
|
227,170
|
|
|
|
|
245,163
|
|
|
|
|
260,572
|
|
|
|
|
268,236
|
|
|
|
|
Less: Beginning of quarter
|
|
|
|
(198,409
|
)
|
|
|
|
(203,312
|
)
|
|
|
|
(227,170
|
)
|
|
|
|
(245,163
|
)
|
|
|
|
(260,572
|
)
|
|
|
|
Foreign currency translation adjustment
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
14
|
|
|
|
|
99
|
|
|
|
|
Change in deferred cost of revenue, net of foreign currency
translation
|
|
|
$
|
4,903
|
|
|
|
$
|
23,858
|
|
|
|
$
|
17,993
|
|
|
|
$
|
15,423
|
|
|
|
$
|
7,763
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCK-BASED COMPENSATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
$
|
640
|
|
|
|
$
|
521
|
|
|
|
$
|
560
|
|
|
|
$
|
6,724
|
|
|
|
$
|
2,531
|
|
|
|
295
|
%
|
Research and development
|
|
|
|
1,101
|
|
|
|
|
876
|
|
|
|
|
934
|
|
|
|
|
9,544
|
|
|
|
|
3,607
|
|
|
|
228
|
%
|
Sales and marketing
|
|
|
|
725
|
|
|
|
|
632
|
|
|
|
|
550
|
|
|
|
|
3,346
|
|
|
|
|
1,526
|
|
|
|
110
|
%
|
General and administrative
|
|
|
|
1,423
|
|
|
|
|
1,188
|
|
|
|
|
1,225
|
|
|
|
|
7,054
|
|
|
|
|
3,181
|
|
|
|
124
|
%
|
Total
|
|
|
$
|
3,889
|
|
|
|
$
|
3,217
|
|
|
|
$
|
3,269
|
|
|
|
$
|
26,668
|
|
|
|
$
|
10,845
|
|
|
|
179
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMPLOYEES
|
|
|
|
573
|
|
|
|
|
570
|
|
|
|
|
566
|
|
|
|
|
572
|
|
|
|
|
589
|
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HOMES & BUSINESSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative network endpoints delivered*
|
|
|
|
13,981
|
|
|
|
|
14,967
|
|
|
|
|
15,781
|
|
|
|
|
16,507
|
|
|
|
|
17,008
|
|
|
|
22
|
%
|
*Endpoints refer to communication modules in electric meters
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SILVER SPRING NETWORKS
|
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
(In thousands, except per share data and percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2
|
|
|
Q3
|
|
|
Q4
|
|
|
Q1
|
|
|
Q2
|
|
|
YOY %
|
|
|
|
CY12
|
|
|
CY12
|
|
|
CY12
|
|
|
CY13
|
|
|
CY13
|
|
|
Change
|
QUARTERLY RECONCILIATION OF RESULTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net revenue
|
|
|
$
|
51,584
|
|
|
|
$
|
39,628
|
|
|
|
$
|
50,071
|
|
|
|
$
|
53,703
|
|
|
|
$
|
103,510
|
|
|
|
101
|
%
|
Change in deferred revenue, net of foreign currency translation
|
|
|
|
22,449
|
|
|
|
|
45,593
|
|
|
|
|
35,505
|
|
|
|
|
20,068
|
|
|
|
|
(17,059
|
)
|
|
|
|
Non-GAAP net revenue
|
|
|
$
|
74,033
|
|
|
|
$
|
85,221
|
|
|
|
$
|
85,576
|
|
|
|
$
|
73,771
|
|
|
|
$
|
86,451
|
|
|
|
17
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
|
|
$
|
6,670
|
|
|
|
$
|
4,434
|
|
|
|
$
|
10,548
|
|
|
|
$
|
10,134
|
|
|
|
$
|
48,250
|
|
|
|
623
|
%
|
Change in deferred revenue, net of foreign currency translation
|
|
|
|
22,449
|
|
|
|
|
45,593
|
|
|
|
|
35,505
|
|
|
|
|
20,068
|
|
|
|
|
(17,059
|
)
|
|
|
|
Change in deferred cost of revenue, net of foreign currency
translation
|
|
|
|
(4,903
|
)
|
|
|
|
(23,858
|
)
|
|
|
|
(17,993
|
)
|
|
|
|
(15,423
|
)
|
|
|
|
(7,763
|
)
|
|
|
|
Amortization of intangibles in cost of revenue
|
|
|
|
48
|
|
|
|
|
48
|
|
|
|
|
48
|
|
|
|
|
48
|
|
|
|
|
48
|
|
|
|
|
Stock-based compensation
|
|
|
|
640
|
|
|
|
|
521
|
|
|
|
|
560
|
|
|
|
|
6,724
|
|
|
|
|
2,531
|
|
|
|
|
Non-GAAP gross profit
|
|
|
$
|
24,904
|
|
|
|
$
|
26,738
|
|
|
|
$
|
28,668
|
|
|
|
$
|
21,551
|
|
|
|
$
|
26,007
|
|
|
|
4
|
%
|
GAAP gross margin % (as a % of GAAP net revenue)
|
|
|
|
13
|
%
|
|
|
|
11
|
%
|
|
|
|
21
|
%
|
|
|
|
19
|
%
|
|
|
|
47
|
%
|
|
|
|
Non-GAAP gross margin % (as a % of non-GAAP net revenue)
|
|
|
|
34
|
%
|
|
|
|
31
|
%
|
|
|
|
34
|
%
|
|
|
|
29
|
%
|
|
|
|
30
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income (loss)
|
|
|
$
|
(22,291
|
)
|
|
|
$
|
(24,467
|
)
|
|
|
$
|
(20,187
|
)
|
|
|
$
|
(39,574
|
)
|
|
|
$
|
9,982
|
|
|
|
145
|
%
|
Change in deferred revenue, net of foreign currency translation
|
|
|
|
22,449
|
|
|
|
|
45,593
|
|
|
|
|
35,505
|
|
|
|
|
20,068
|
|
|
|
|
(17,059
|
)
|
|
|
|
Change in deferred cost of revenue, net of foreign currency
translation
|
|
|
|
(4,903
|
)
|
|
|
|
(23,858
|
)
|
|
|
|
(17,993
|
)
|
|
|
|
(15,423
|
)
|
|
|
|
(7,763
|
)
|
|
|
|
Amortization of intangibles in cost of revenue
|
|
|
|
48
|
|
|
|
|
48
|
|
|
|
|
48
|
|
|
|
|
48
|
|
|
|
|
48
|
|
|
|
|
Stock-based compensation
|
|
|
|
3,889
|
|
|
|
|
3,217
|
|
|
|
|
3,269
|
|
|
|
|
26,668
|
|
|
|
|
10,845
|
|
|
|
|
Non-GAAP operating income (loss)
|
|
|
$
|
(808
|
)
|
|
|
$
|
533
|
|
|
|
$
|
642
|
|
|
|
$
|
(8,213
|
)
|
|
|
$
|
(3,947
|
)
|
|
|
-388
|
%
|
GAAP operating margin % (as a % of GAAP revenue)
|
|
|
|
-43
|
%
|
|
|
|
-62
|
%
|
|
|
|
-40
|
%
|
|
|
|
-74
|
%
|
|
|
|
10
|
%
|
|
|
|
Non-GAAP operating margin % (as a % of non-GAAP net revenue)
|
|
|
|
-1
|
%
|
|
|
|
1
|
%
|
|
|
|
1
|
%
|
|
|
|
-11
|
%
|
|
|
|
-5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss)
|
|
|
$
|
(23,407
|
)
|
|
|
$
|
(26,868
|
)
|
|
|
$
|
(21,010
|
)
|
|
|
$
|
(64,366
|
)
|
|
|
$
|
9,470
|
|
|
|
140
|
%
|
Change in deferred revenue, net of foreign currency translation
|
|
|
|
22,449
|
|
|
|
|
45,593
|
|
|
|
|
35,505
|
|
|
|
|
20,068
|
|
|
|
|
(17,059
|
)
|
|
|
|
Change in deferred cost of revenue, net of foreign currency
translation
|
|
|
|
(4,903
|
)
|
|
|
|
(23,858
|
)
|
|
|
|
(17,993
|
)
|
|
|
|
(15,423
|
)
|
|
|
|
(7,763
|
)
|
|
|
|
Other (income) expense, net
|
|
|
|
1,078
|
|
|
|
|
2,028
|
|
|
|
|
902
|
|
|
|
|
24,728
|
|
|
|
|
184
|
|
|
|
|
Provision for income taxes
|
|
|
|
38
|
|
|
|
|
373
|
|
|
|
|
(79
|
)
|
|
|
|
64
|
|
|
|
|
328
|
|
|
|
|
Depreciation and amortization
|
|
|
|
1,857
|
|
|
|
|
1,815
|
|
|
|
|
1,796
|
|
|
|
|
1,677
|
|
|
|
|
1,689
|
|
|
|
|
Stock-based compensation
|
|
|
|
3,889
|
|
|
|
|
3,217
|
|
|
|
|
3,269
|
|
|
|
|
26,668
|
|
|
|
|
10,845
|
|
|
|
|
Adjusted EBITDA
|
|
|
$
|
1,001
|
|
|
|
$
|
2,300
|
|
|
|
$
|
2,390
|
|
|
|
$
|
(6,584
|
)
|
|
|
$
|
(2,306
|
)
|
|
|
-330
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss)
|
|
|
$
|
(23,407
|
)
|
|
|
$
|
(26,868
|
)
|
|
|
$
|
(21,010
|
)
|
|
|
$
|
(64,366
|
)
|
|
|
$
|
9,470
|
|
|
|
140
|
%
|
Change in deferred revenue, net of foreign currency translation
|
|
|
|
22,449
|
|
|
|
|
45,593
|
|
|
|
|
35,505
|
|
|
|
|
20,068
|
|
|
|
|
(17,059
|
)
|
|
|
|
Change in deferred cost of revenue, net of foreign currency
translation
|
|
|
|
(4,903
|
)
|
|
|
|
(23,858
|
)
|
|
|
|
(17,993
|
)
|
|
|
|
(15,423
|
)
|
|
|
|
(7,763
|
)
|
|
|
|
Amortization of intangibles in cost of revenue
|
|
|
|
48
|
|
|
|
|
48
|
|
|
|
|
48
|
|
|
|
|
48
|
|
|
|
|
48
|
|
|
|
|
Convertible notes accretion / interest
|
|
|
|
1,012
|
|
|
|
|
1,069
|
|
|
|
|
1,081
|
|
|
|
|
935
|
|
|
|
|
-
|
|
|
|
|
Conversion of promissory notes and remeasurement of warrants and
derivatives
|
|
|
|
(151
|
)
|
|
|
|
830
|
|
|
|
|
(308
|
)
|
|
|
|
23,676
|
|
|
|
|
-
|
|
|
|
|
Stock-based compensation
|
|
|
|
3,889
|
|
|
|
|
3,217
|
|
|
|
|
3,269
|
|
|
|
|
26,668
|
|
|
|
|
10,845
|
|
|
|
|
Non-GAAP net income (loss)
|
|
|
$
|
(1,063
|
)
|
|
|
$
|
31
|
|
|
|
$
|
592
|
|
|
|
$
|
(8,394
|
)
|
|
|
$
|
(4,459
|
)
|
|
|
-319
|
%
|
GAAP net margin % (as a % of GAAP revenue)
|
|
|
|
-45
|
%
|
|
|
|
-68
|
%
|
|
|
|
-42
|
%
|
|
|
|
-120
|
%
|
|
|
|
9
|
%
|
|
|
|
Non-GAAP net margin % (as a % of non-GAAP net revenue)
|
|
|
|
-1
|
%
|
|
|
|
0
|
%
|
|
|
|
1
|
%
|
|
|
|
-11
|
%
|
|
|
|
-5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income (loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
(6.38
|
)
|
|
|
$
|
(7.30
|
)
|
|
|
$
|
(5.65
|
)
|
|
|
$
|
(16.18
|
)*
|
|
|
$
|
0.20
|
|
|
|
|
Diluted
|
|
|
$
|
(6.38
|
)
|
|
|
$
|
(7.30
|
)
|
|
|
$
|
(5.65
|
)
|
|
|
$
|
(16.18
|
)*
|
|
|
$
|
0.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in computation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
3,669
|
|
|
|
|
3,682
|
|
|
|
|
3,720
|
|
|
|
|
10,469
|
|
|
|
|
46,599
|
|
|
|
|
Diluted
|
|
|
|
3,669
|
|
|
|
|
3,682
|
|
|
|
|
3,720
|
|
|
|
|
10,469
|
|
|
|
|
48,995
|
|
|
|
|
* GAAP income (loss) per share is based on net loss
attributable to common stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income (loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
(0.29
|
)
|
|
|
$
|
0.01
|
|
|
|
$
|
0.16
|
|
|
|
$
|
(0.80
|
)
|
|
|
$
|
(0.10
|
)
|
|
|
|
Diluted
|
|
|
$
|
(0.29
|
)
|
|
|
$
|
0.00
|
|
|
|
$
|
0.02
|
|
|
|
$
|
(0.80
|
)
|
|
|
$
|
(0.10
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in computation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
3,669
|
|
|
|
|
3,682
|
|
|
|
|
3,720
|
|
|
|
|
10,469
|
|
|
|
|
46,599
|
|
|
|
|
Diluted
|
|
|
|
3,669
|
|
|
|
|
29,556
|
|
|
|
|
29,394
|
|
|
|
|
10,469
|
|
|
|
|
46,599
|
|
|
|
|
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