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Model N Announces Fourth Quarter and Fiscal Year 2020 Financial Results

SAN MATEO, Calif.–(BUSINESS WIRE)–#ModelN–Model N, Inc. (NYSE: MODN), the leading provider of cloud revenue management solutions for life sciences and high tech companies, today announced financial results for the fourth quarter and fiscal year 2020 ended September 30, 2020.

“As we announced in October, our fourth quarter results exceeded our guidance across all key metrics which resulted in another quarter of profitable growth and a strong finish to the year. I am proud of how our team performed in fiscal year 2020, particularly in this challenging macroenvironment,” said Jason Blessing, president and chief executive officer of Model N. “In the fourth quarter, we continued to see our go-to-market strategy work as designed as we added new customers, expanded within our existing customer base and signed additional SaaS transition deals, resulting in the highest quarterly deal volume in our company’s history. Our customer wins ranged from enterprise companies to some of the largest enterprises in the world in both Life Sciences and High Tech. As the pandemic continues to impact our customers, the value of our products is evident to customers of all sizes and from each vertical, and we expect them to continue to view us as a top IT investment priority for fiscal year 2021.”

Recent Highlights

  • Global Pharmaceutical Customers Select Model N Revenue Cloud – During the fourth quarter, several new customers selected Model N as their provider of revenue management solutions. Top, global pharmaceutical company and long-time customer, Merck & Co., selected the full suite of Model N Revenue Cloud products for the spin-off of Organon & Co., its women’s health, trusted legacy brands, and biosimilars businesses. Also during the quarter, Octapharma, one of the largest human protein products manufacturers in the world, chose Model N to support its commitment to patient care and medical innovation, including its development of plasma-derived blood product therapies to combat COVID-19. We believe that organizations choose Revenue Cloud because it offers enhanced efficiency, increased visibility, and improved transparency in reporting.
  • Life Sciences Customers’ Go-lives Provide Rapid Time-to-Value and Increased Return-on-Investment – In the fourth quarter, several Model N customers went live on Model N Revenue Cloud. Global specialty pharmaceutical company, Mallinckrodt, continued its product roll-out, going live in its brands division. Working closely with Model N’s professional services team, the go-live was Model N’s fastest SaaS transition to date. Also during the quarter, Servier Monde went live with additional Global Pricing Management functionality. This implementation provides the customer with state-of-the-art competitor pricing dashboards which will allow for quicker, more informed decision-making. Influenza vaccine manufacturer, Seqirus USA, also went live after choosing Model N Revenue Cloud earlier in our fiscal year 2020. Revenue Cloud will allow the customer to scale by automating its booking processes and to work seamlessly with its distributors. With quicker access to richer business intelligence due to improved implementation time, Model N customers are able to achieve faster time-to-value and increased return-on-investment.
  • Top Semiconductor Company and Long-time High-Tech Customer Expands its Model N Footprint – In the fourth quarter, long-time Channel Data Management customer, Advanced Micro Devices (AMD), went live with Model N’s full suite of cloud solutions, tightly integrating its channel data into its front and back office systems. By expanding Model N’s product footprint, AMD expects to be able to improve its quoting, pricing, and rebating activities as well as to gain more actionable intelligence into its channel.
  • Revenue Cloud Fall ’20 Release for High Tech Provides an End-to-End Solution for Deal Optimization that Utilizes Artificial Intelligence and Machine Learning (AI/ML) – With its new release, Model N addresses customer revenue management challenges by extending its AI/ML capabilities in Revenue Cloud and allowing customers to fine-tune their pricing decisions based on channel and customer pricing data. With these enhanced capabilities, customers can prioritize and optimize high-value deals across their multi-tier channels, and increase execution speed.

Fourth Quarter 2020 Financial Highlights

  • Revenues: Total revenues were $41.5 million, an increase of 13% from the fourth quarter of fiscal year 2019. Subscription revenues were $29.7 million, an increase of 8% from the fourth quarter of fiscal year 2019.
  • Gross Profit: Gross profit was $24.9 million, an increase of 27% from the fourth quarter of fiscal year 2019. Gross margin was 60% compared to 54% for the fourth quarter of fiscal year 2019. Non-GAAP gross profit was $26.1 million, an increase of 16% from the fourth quarter of fiscal year 2019. Non-GAAP gross margin was 63% compared to 62% for the fourth quarter of fiscal year 2019. Subscription gross margin was 71% compared to 67% for the fourth quarter of fiscal year 2019. Non-GAAP subscription gross margin was 74% compared to 73% for the fourth quarter of fiscal year 2019.
  • Income from Operations: GAAP income from operations was $0.4 million, an improvement of 107% from the fourth quarter of fiscal year 2019. Non-GAAP income from operations was $6.8 million, an increase of 41% from the fourth quarter of fiscal year 2019.
  • GAAP Net Loss: GAAP net loss was $(3.7) million, an improvement of 35% from the fourth quarter of fiscal year 2019. GAAP basic and diluted net loss per share attributable to common stockholders was $(0.11)based upon weighted average shares outstanding of 34.7 million compared to net loss per share of $(0.17) for the fourth quarter of fiscal year 2019 based upon weighted average shares outstanding of 32.8 million.
  • Non-GAAP Net Income: Non-GAAP net income was $5.1 million, an increase of 15% from the fourth quarter of fiscal year 2019. Non-GAAP net income per diluted share was $0.14 based upon diluted weighted average shares outstanding of 36.4 million compared to non-GAAP net income per diluted share of $0.13 for the fourth quarter of fiscal year 2019 based upon diluted weighted average shares outstanding of 34.1 million.
  • Adjusted EBITDA: Adjusted EBITDA was $7.0 million, an increase of 38% from the fourth quarter of fiscal year 2019.

Fiscal Year 2020 Financial Highlights

  • Revenues: Total revenues were $161.1 million, an increase of 14% from fiscal year 2019. Subscription revenues were $116.2 million, an increase of 10% from fiscal year 2019.
  • Gross Profit: Gross profit was $95.6 million, an increase of 27% from fiscal year 2019. Gross margin was 59% compared to 53% for fiscal year 2019. Non-GAAP gross profit was $100.8 million, an increase of 22% from fiscal year 2019. Non-GAAP gross margins were 63% compared to 58% for fiscal year 2019. Subscription gross margin was 70% compared to 67% for fiscal year 2019. Non-GAAP subscription gross margin was 73% compared to 71% for fiscal year 2019.
  • GAAP Loss and Non-GAAP Income from Operations: GAAP loss from operations was $(6.6) million, an improvement of 56% from fiscal year 2019. Non-GAAP income from operations was $20.6 million, an increase of 75% from fiscal year 2019.
  • GAAP Net Loss: GAAP net loss was $(13.7) million, an improvement of 29% from fiscal year 2019. GAAP basic and diluted net loss per share attributed to common stockholders was $(0.40) based upon weighted average shares outstanding of 34.0 million compared to net loss per share of $(0.60) for fiscal year 2019 based upon weighted average shares outstanding of 32.2 million.
  • Non-GAAP Net Income: Non-GAAP net income was $17.0 million, an increase of 110% from fiscal year 2019. Non-GAAP net income per diluted share was $0.48 based upon diluted weighted average shares outstanding of 35.4 million compared to non-GAAP net income per diluted share of $0.24 for fiscal year 2019 based upon diluted weighted average shares outstanding of 33.4 million.
  • Adjusted EBITDA: Adjusted EBITDA was $21.4 million, an increase of 63% from fiscal year 2019.
  • Cash and Cash Flows: Cash and cash equivalents as of September 30, 2020 totaled $200.5 million. During fiscal year 2020, the company raised $172.5 million from the issuance of convertible senior notes before issuance costs and paid down $40.0 million in debt, accrued interest and other fees. Net cash provided by operating activities was $14.4 million for fiscal year 2020 compared to net cash provided by operating activities of $10.5 million in fiscal year 2019. Free cash flow was $13.8 million for fiscal year 2020 compared to free cash flow of $10.2 million in fiscal year 2019.

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

Guidance

The impact of COVID-19 and its effect on Model N’s business is included in the guidance that is being provided for the first quarter of fiscal year 2021 and full fiscal year ending September 30, 2021 and reflects the company’s outlook as of November 10, 2020.

(in $ millions, except per share)

First Quarter Fiscal 2021

Full Year Fiscal 2021

Total revenues

40.2 – 40.6

170.0 – 172.0

Subscription revenues

29.4 – 29.8

122.0 – 124.0

Non-GAAP income from operations

4.0 – 4.4

17.6 – 19.6

Non-GAAP net income per share

0.05 – 0.08

0.27 – 0.35

Adjusted EBITDA

4.1 – 4.5

18.0 – 20.0

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 fourth quarter and fiscal year 2020 ended September 30, 2020. The conference call can be accessed by dialing 877-407-4018 from the United States or +1-201-689-8471 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 November 24, 2020, a telephone replay will be available by dialing 844-512-2921 from the United States or +1-412-317-6671, internationally, with recording access code 13711433.

About Model N

Model N enables life sciences and high tech companies to drive growth and market share, minimizing revenue leakage throughout the revenue lifecycle. With deep industry expertise and solutions purpose-built for these industries, Model N delivers comprehensive visibility, insight and control over the complexities of commercial operations and compliance. Its integrated cloud solution is proven to automate pricing, incentive and contract decisions to scale business profitably and grow revenue. Model N is trusted across more than 120 countries by the world’s leading pharmaceutical, medical technology, semiconductor, and high tech companies, including Johnson & Johnson, AstraZeneca, Novartis, Microchip Technology, and ON Semiconductor. For more information, visit www.modeln.com.​

Forward-Looking Statements

This press release contains forward-looking statements including, among other things, statements regarding Model N’s first quarter and full year fiscal 2021 financial results, the impact COVID-19 will have on our business, Model N’s profitability, future planned enhancements to our products and benefits from our products. 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; (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; (xii) our ability to retain customers; and (xiii) adverse impacts on our business and financial condition due to COVID-19. 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, 2019, 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 gross margin, non-GAAP subscription gross profit, non-GAAP subscription gross margin, non-GAAP income (loss) from operations, non-GAAP net income (loss), non-GAAP net income (loss) per share, and adjusted EBITDA. Non-GAAP gross profit excludes stock-based compensation expenses, amortization of intangible assets, and deferred revenue adjustments as they are often excluded by other companies to help investors understand the operational performance of their business. Non-GAAP income (loss) from operations excludes stock-based compensation expense, amortization of intangible assets, and deferred revenue adjustments. Non-GAAP net income (loss) excludes stock-based compensation expense, amortization of intangible assets, amortization of debt discount and issuance costs, and deferred revenue adjustments. Additionally, stock-based compensation expense varies from period to period and from company to company due to such things as valuation methodologies and changes in stock price. Adjusted EBITDA is defined as net loss, adjusted for depreciation and amortization, stock-based compensation expense, acquisition & integration related expenses, deferred revenue adjustment, interest (income) expense, net, other (income) expenses, net, and provision for (benefit from) income taxes. Reconciliation tables are provided in this press release.

We have not reconciled guidance for non-GAAP financial measures to their most directly comparable GAAP measures because certain items that impact these measures are uncertain, out of our control and/or cannot be reasonably predicted or estimated, such as the difficulties of estimating certain items such as charges to stock-based compensation expense. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measures is not available without unreasonable effort.

Model N, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

   

 

 

As of
September 30, 2020

 

As of
September 30, 2019

Assets

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$

200,491

 

 

$

60,780

 

Accounts receivable, net

 

 

35,796

 

 

 

26,953

 

Prepaid expenses

 

 

2,797

 

 

 

2,776

 

Other current assets

 

 

7,314

 

 

 

4,039

 

Total current assets

 

 

246,398

 

 

 

94,548

 

Property and equipment, net

 

 

1,034

 

 

 

1,043

 

Operating lease right-of-use assets

 

 

3,332

 

 

 

 

Goodwill

 

 

39,283

 

 

 

39,283

 

Intangible assets, net

 

 

24,380

 

 

 

29,131

 

Other assets

 

 

5,863

 

 

 

5,588

 

Total assets

 

$

320,290

 

 

$

169,593

 

Liabilities and Stockholders’ Equity

 

 

 

 

Current liabilities

 

 

 

 

Accounts payable

 

$

3,009

 

 

$

2,302

 

Accrued employee compensation

 

 

17,056

 

 

 

19,906

 

Accrued liabilities

 

 

5,237

 

 

 

4,354

 

Operating lease liabilities, current portion

 

 

1,460

 

 

 

 

Deferred revenue, current portion

 

 

50,904

 

 

 

44,875

 

Long term debt, current portion

 

 

 

 

 

4,911

 

Total current liabilities

 

 

77,666

 

 

 

76,348

 

Long-term liabilities

 

 

 

 

Long term debt

 

 

114,438

 

 

 

39,371

 

Operating lease liabilities, less current portion

 

 

2,067

 

 

 

 

Other long-term liabilities

 

 

1,448

 

 

 

1,152

 

Total long-term liabilities

 

 

117,953

 

 

 

40,523

 

Total liabilities

 

 

195,619

 

 

 

116,871

 

Stockholders’ equity

 

 

 

 

Common stock

 

 

5

 

 

 

5

 

Preferred stock

 

 

 

 

 

 

Additional paid-in capital

 

 

351,952

 

 

 

266,295

 

Accumulated other comprehensive loss

 

 

(1,213

)

 

 

(1,169

)

Accumulated deficit

 

 

(226,073

)

 

 

(212,409

)

Total stockholders’ equity

 

 

124,671

 

 

 

52,722

 

Total liabilities and stockholders’ equity

 

$

320,290

 

 

$

169,593

 

Model N, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

   

 

 

Three Months Ended September 30,

 

Twelve Months Ended September 30,

 

 

2020

 

2019

 

2020

 

2019

Revenues

 

 

 

 

 

 

 

 

Subscription

 

$

29,672

 

 

$

27,439

 

 

$

116,184

 

 

$

105,219

 

Professional services

 

 

11,788

 

 

 

9,164

 

 

 

44,872

 

 

 

36,016

 

Total revenues

 

 

41,460

 

 

 

36,603

 

 

 

161,056

 

 

 

141,235

 

Cost of revenues

 

 

 

 

 

 

 

 

Subscription

 

 

8,579

 

 

 

8,970

 

 

 

34,461

 

 

 

35,218

 

Professional services

 

 

8,009

 

 

 

7,983

 

 

 

31,035

 

 

 

30,912

 

Total cost of revenues

 

 

16,588

 

 

 

16,953

 

 

 

65,496

 

 

 

66,130

 

Gross profit

 

 

24,872

 

 

 

19,650

 

 

 

95,560

 

 

 

75,105

 

Operating expenses

 

 

 

 

 

 

 

 

Research and development

 

 

8,455

 

 

 

8,122

 

 

 

34,361

 

 

 

30,009

 

Sales and marketing

 

 

9,297

 

 

 

9,080

 

 

 

38,979

 

 

 

32,894

 

General and administrative

 

 

6,757

 

 

 

7,511

 

 

 

28,826

 

 

 

27,213

 

Total operating expenses

 

 

24,509

 

 

 

24,713

 

 

 

102,166

 

 

 

90,116

 

Income (loss) from operations

 

 

363

 

 

 

(5,063

)

 

 

(6,606

)

 

 

(15,011

)

Interest expense, net

 

 

3,371

 

 

 

620

 

 

 

6,322

 

 

 

2,933

 

Other expenses (income), net

 

 

347

 

 

 

(89

)

 

 

(76

)

 

 

319

 

Loss before income taxes

 

 

(3,355

)

 

 

(5,594

)

 

 

(12,852

)

 

 

(18,263

)

Provision for income taxes

 

 

302

 

 

 

61

 

 

 

812

 

 

 

1,030

 

Net loss

 

$

(3,657

)

 

$

(5,655

)

 

$

(13,664

)

 

$

(19,293

)

Net loss per share:

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.11

)

 

$

(0.17

)

 

$

(0.40

)

 

$

(0.60

)

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

 

 

 

 

 

 

 

 

Basic and diluted

 

 

34,684

 

 

 

32,846

 

 

 

34,008

 

 

 

32,232

 

Model N, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

   

 

 

Twelve Months Ended September 30,

 

 

2020

 

2019

Cash Flows from Operating Activities

 

 

 

 

Net loss

 

$

(13,664

)

 

$

(19,293

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

Depreciation and amortization

 

 

5,498

 

 

 

6,790

 

Stock-based compensation

 

 

22,500

 

 

 

21,340

 

Amortization of debt discount and issuance costs

 

 

3,405

 

 

 

579

 

Deferred income taxes

 

 

389

 

 

 

176

 

Amortization of capitalized contract acquisition costs

 

 

2,459

 

 

 

1,781

 

Loss on early extinguishment of debt

 

 

319

 

 

 

(121

)

Other non-cash charges

 

 

(4

)

 

 

 

Changes in assets and liabilities

 

 

 

 

Accounts receivable

 

 

(8,836

)

 

 

860

 

Prepaid expenses and other assets

 

 

(3,091

)

 

 

(5,158

)

Accounts payable

 

 

544

 

 

 

692

 

Accrued employee compensation

 

 

927

 

 

 

2,015

 

Other current and long-term liabilities

 

 

(2,433

)

 

 

240

 

Deferred revenue

 

 

6,393

 

 

 

549

 

Net cash provided by operating activities

 

 

14,406

 

 

 

10,450

 

Cash Flows from Investing Activities

 

 

 

 

Purchases of property and equipment

 

 

(579

)

 

 

(280

)

Net cash used in investing activities

 

 

(579

)

 

 

(280

)

Cash Flows from Financing Activities

 

 

 

 

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

 

 

4,234

 

 

 

3,870

 

Proceeds from issuance of convertible senior notes, net of issuance costs

 

 

166,409

 

 

 

 

Principal payments on debt

 

 

(44,750

)

 

 

(10,000

)

Net cash provided by (used in) financing activities

 

 

125,893

 

 

 

(6,130

)

Effect of exchange rate changes on cash and cash equivalents

 

 

(9

)

 

 

36

 

Net increase in cash and cash equivalents

 

 

139,711

 

 

 

4,076

 

Cash and cash equivalents

 

 

 

 

Beginning of period

 

 

60,780

 

 

 

56,704

 

End of period

 

$

200,491

 

 

$

60,780

 

Model N, Inc.

Reconciliation of GAAP to Non-GAAP Operating Results

(in thousands, except per share amounts)

 

 

 

Three Months Ended September 30,

 

Twelve Months Ended September 30,

 

 

2020

 

2019

 

2020

 

2019

Reconciliation from GAAP net loss to adjusted EBITDA

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(3,657

)

 

$

(5,655

)

 

$

(13,664

)

 

$

(19,293

)

Reversal of non-GAAP items

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

5,268

 

 

 

8,518

 

 

 

22,500

 

 

 

21,340

 

Depreciation and amortization

 

 

1,335

 

 

 

1,599

 

 

 

5,498

 

 

 

6,790

 

Interest expense, net

 

 

3,371

 

 

 

620

 

 

 

6,322

 

 

 

2,933

 

Other expenses (income), net

 

 

347

 

 

 

(89

)

 

 

(76

)

 

 

319

 

Provision for income taxes

 

 

302

 

 

 

61

 

 

 

812

 

 

 

1,030

 

Adjusted EBITDA

 

$

6,966

 

 

$

5,054

 

 

$

21,392

 

 

$

13,119

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Twelve Months Ended September 30,

 

 

2020

 

2019

 

2020

 

2019

Reconciliation from GAAP gross profit to non-GAAP gross profit

 

 

 

 

 

 

 

 

GAAP gross profit

 

$

24,872

 

 

$

19,650

 

 

$

95,560

 

 

$

75,105

 

Reversal of non-GAAP expenses

 

 

 

 

 

 

 

 

Stock-based compensation (a)

 

 

980

 

 

 

2,455

 

 

 

4,094

 

 

 

5,362

 

Amortization of intangible assets (b)

 

 

282

 

 

 

476

 

 

 

1,193

 

 

 

1,904

 

Non-GAAP gross profit

 

$

26,134

 

 

$

22,581

 

 

$

100,847

 

 

$

82,371

 

Percentage of revenue

 

 

63.0

%

 

 

61.7

%

 

 

62.6

%

 

 

58.3

%

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Twelve Months Ended September 30,

 

 

2020

 

2019

 

2020

 

2019

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

 

 

 

 

 

 

 

 

GAAP subscription gross profit

 

$

21,093

 

 

$

18,469

 

 

$

81,723

 

 

$

70,001

 

Reversal of non-GAAP expenses

 

 

 

 

 

 

 

 

Stock-based compensation (a)

 

 

436

 

 

 

1,104

 

 

 

1,865

 

 

 

2,468

 

Amortization of intangible assets (b)

 

 

282

 

 

 

476

 

 

 

1,193

 

 

 

1,904

 

Non-GAAP subscription gross profit

 

$

21,811

 

 

$

20,049

 

 

$

84,781

 

 

$

74,373

 

 

 

Three Months Ended September 30,

 

Twelve Months Ended September 30,

 

 

2020

 

2019

 

2020

 

2019

Reconciliation from GAAP operating income (loss) to non-GAAP operating income

 

 

 

 

 

 

 

 

GAAP operating income (loss)

 

$

363

 

 

$

(5,063

)

 

$

(6,606

)

 

$

(15,011

)

Reversal of non-GAAP expenses

 

 

 

 

 

 

 

 

Stock-based compensation (a)

 

 

5,268

 

 

 

8,518

 

 

 

22,500

 

 

 

21,340

 

Amortization of intangible assets (b)

 

 

1,171

 

 

 

1,366

 

 

 

4,751

 

 

 

5,467

 

Non-GAAP operating income

 

$

6,802

 

 

$

4,821

 

 

$

20,645

 

 

$

11,796

 

 

 

 

 

 

 

 

 

 

Numerator

 

 

 

 

 

 

 

 

Reconciliation between GAAP net loss and non-GAAP net income

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(3,657

)

 

$

(5,655

)

 

$

(13,664

)

 

$

(19,293

)

Reversal of non-GAAP expenses

 

 

 

 

 

 

 

 

Stock-based compensation (a)

 

 

5,268

 

 

 

8,518

 

 

 

22,500

 

 

 

21,340

 

Amortization of intangible assets (b)

 

 

1,171

 

 

 

1,366

 

 

 

4,751

 

 

 

5,467

 

Amortization of debt discount and issuance costs (c)

 

$

2,287

 

 

$

178

 

 

$

3,405

 

 

$

579

 

Non-GAAP net income

 

$

5,069

 

 

$

4,407

 

 

$

16,992

 

 

$

8,093

 

 

 

 

 

 

 

 

 

 

Denominator

 

 

 

 

 

 

 

 

Reconciliation between GAAP and non-GAAP net income (loss) per share

 

 

 

 

 

 

 

 

Shares used in computing GAAP net loss per share:

 

 

 

 

 

 

 

 

Basic

 

 

34,684

 

 

 

32,846

 

 

 

34,008

 

 

 

32,232

 

Diluted

 

 

34,684

 

 

 

32,846

 

 

 

34,008

 

 

 

32,232

 

Shares used in computing non-GAAP net income per share

 

 

 

 

 

 

 

 

Basic

 

 

34,684

 

 

 

32,846

 

 

 

34,008

 

 

 

32,232

 

Diluted

 

 

36,413

 

 

 

34,149

 

 

 

35,366

 

 

 

33,423

 

GAAP net loss per share

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.11

)

 

$

(0.17

)

 

$

(0.40

)

 

$

(0.60

)

Non-GAAP net income per share

 

 

 

 

 

 

 

 

Basic

 

$

0.15

 

 

$

0.13

 

 

$

0.50

 

 

$

0.25

 

Diluted

 

$

0.14

 

 

$

0.13

 

 

$

0.48

 

 

$

0.24

 

Contacts

Investor Relations Contact:
Gwyn Lauber

Model N, Inc.

650-610-4998

investorrelations@modeln.com

Media Contact:
Laura Ruark

Bospar

laura@bospar.com

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