UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 


 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): May 7, 2015

 

PAYLOCITY HOLDING CORPORATION

(Exact name of registrant as specified in charter)

 

Delaware

 

001-36348

 

46-4066644

(State or Other Jurisdiction of

 Incorporation)

 

(Commission File Number)

 

(I.R.S. Employer Identification

 Number)

 

3850 N. Wilke Road

Arlington Heights, Illinois 60004

(Address of principal executive offices, including zip code)

 

(847) 463-3200

(Registrant’s telephone number, including area code)

 

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:

 

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

 

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

 

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

 

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

 

 

 



 

Item 2.02 Results of Operations and Financial Condition.

 

On May 7, 2015, Paylocity Holding Corporation (the “Company”) issued a press release announcing financial results for the three month period ended March 31, 2015. The press release contains forward-looking statements regarding the Company, and includes cautionary statements identifying important factors that could cause actual results to differ materially from those anticipated.

 

The press release issued May 7, 2015 is furnished herewith as Exhibit 99.1. The information in this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liability of that Section, nor shall such information be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as otherwise stated in such filing.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit No.

 

Description

99.1

 

Press Release issued by Paylocity Holding Corporation dated May 7, 2015.

 

2



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

PAYLOCITY HOLDING CORPORATION

 

 

 

 

 

 

Date: May 7, 2015

By:

/s/ Peter J. McGrail

 

 

Peter J. McGrail

 

 

Chief Financial Officer

 

3



 

EXHIBIT INDEX

 

Exhibit No.

 

Description

99.1

 

Press Release issued by Paylocity Holding Corporation dated May 7, 2015.

 

4


Exhibit 99.1

 

 

Paylocity Announces Third Quarter Fiscal Year 2015 Financial Results

 

·                  Q3 2015 Total Revenue of $47.3 million, up 40% year-over-year

·                  Recurring Revenue of $43.9 million, up 41% year-over-year

·                  Completed acquisition of second reseller in April 2015

 

Arlington Heights, IL. — May 7, 2015 — Paylocity Holding Corporation (Nasdaq: PCTY), a cloud-based provider of payroll and human capital management software solutions, today announced financial results for the third quarter of fiscal year 2015, which ended March 31, 2015.

 

“The seasonal boost of high gross margin fees for annual filings, coupled with the continued demand for our cloud-based, unified payroll and HCM solutions, resulted in a strong quarter across all of our key metrics,” said Steve Beauchamp, President and Chief Executive Officer of Paylocity.  “The third quarter is historically our most active sales period, and our team performed very well, laying the foundation for a strong finish to FY 2015 and providing momentum going into FY 2016.”

 

Third Quarter Fiscal Year 2015 Financial Highlights

 

Revenue:

 

·                  Total revenue was $47.3 million, an increase of 40% from the third quarter of fiscal year 2014.

 

·                  Total recurring revenue was $43.9 million, representing 93% of total revenue and an increase of 41% from the third quarter of fiscal year 2014.

 



 

Adjusted EBITDA:

 

·                  Adjusted EBITDA, a non-GAAP measure, was $7.5 million compared to Adjusted EBITDA of $5.2 million in the third quarter of fiscal year 2014.

 

Operating Income:

 

·                  GAAP operating income was $1.7 million, compared to operating income of $2.1 million in the third quarter of fiscal year 2014.

 

·                  Non-GAAP operating income was $5.4 million, compared to non-GAAP operating income of $3.5 million in the third quarter of fiscal year 2014.

 

Net Income:

 

·                  GAAP net income was $1.8 million, compared to a GAAP net income of $1.2 million for the third quarter of fiscal year 2014. Net income per share was $0.03 for the third quarter of fiscal year 2015, based on 52.2 million diluted weighted average common shares outstanding. On a pro forma basis assuming conversion of all outstanding preferred shares as of July 1, 2013, net income per share was $0.03 for the third quarter of fiscal year 2014, based on 44.9 million diluted weighted average common shares outstanding.

 

·                  Non-GAAP net income was $5.6 million, compared to non-GAAP net income of $2.0 million for the third quarter of fiscal year 2014. Non-GAAP net income per share was $0.11 for the third quarter of fiscal year 2015, based on 52.2 million diluted weighted average common shares outstanding. On a pro forma basis, assuming conversion of all outstanding preferred shares as of July 1, 2013, non-GAAP net income per share was $0.04 for the third quarter of fiscal year 2014, based on 44.9 million diluted weighted average common shares outstanding.

 



 

Balance Sheet and Cash Flow:

 

·                  Cash and cash equivalents totaled $93.2 million at the end of the quarter.

 

·                  Cash flow from operations for the third quarter of fiscal year 2015 was $9.4 million compared to $7.2 million for the third quarter of fiscal year 2014.

 

A reconciliation of GAAP to non-GAAP financial measures has been provided in this press release, including the accompanying tables.  An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

 

Business Outlook

 

Based on information available as of May 7, 2015, Paylocity is issuing guidance for the fourth quarter and full fiscal year 2015 as indicated below.

 

Fourth Quarter 2015:

 

·                  Total revenue is expected to be in the range of $37.5 million to $38.5 million.

·                  Adjusted EBITDA is expected to be in the range of ($1.2) million to ($0.2) million.

·                  Non-GAAP net loss is expected to be in the range of ($3.7) million to ($2.7) million, or ($0.07) to ($0.05) per share, based on 50.7 million basic and diluted weighted average common shares outstanding.

 

Fiscal Year 2015:

 

·                  Total revenue is expected to be in the range of $150.2 million to $151.2 million.

·                  Adjusted EBITDA is expected to be in the range of $6.5 million to $7.5 million.

·                  Non-GAAP net loss is expected to be in the range of ($1.8) million to ($0.8) million, or ($0.04) to ($0.02) per share, based on 50.2 million basic and diluted weighted average common shares outstanding.

 



 

Conference Call Details

 

Paylocity will host a conference call to discuss its third quarter results at 4:00 p.m. Central Time today (5:00 Eastern Time). A live audio webcast of the conference call can be accessed through the company’s Investor Relations Web site at http://www.paylocity.com. Participants who choose to call in to the conference call can do so by dialing (855) 226-3021 or (315) 625-6892, passcode 12096608. A replay of the call will be available and archived via webcast at www.paylocity.com.

 

About Paylocity

 

Paylocity is a provider of cloud-based payroll and human capital management, or HCM, software solutions for medium-sized organizations. Paylocity’s comprehensive and easy-to-use solutions enable its clients to manage their workforces more effectively.  Paylocity’s solutions help drive strategic human capital decision-making and improve employee engagement by enhancing the human resource, payroll and finance capabilities of its clients. For more information, visit www.paylocity.com.

 

Source: Paylocity

 

Non-GAAP Financial Measures

 

The company uses certain non-GAAP financial measures in this release, including Adjusted EBITDA, adjusted gross profit, adjusted recurring gross profit, non-GAAP operating income (loss), non-GAAP net income (loss), non-GAAP net income (loss) per share, non-GAAP sales and marketing, non-GAAP total research and development and non-GAAP general and administrative. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. We define Adjusted EBITDA as net income (loss) before interest expense, taxes, and depreciation and amortization expense, adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises. Adjusted gross profit and adjusted recurring gross profit are adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and amortization of capitalized research and development costs. Non-GAAP operating income (loss), non-GAAP sales and marketing expense and non-GAAP general and administrative expense are adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, non-GAAP net income (loss) and non-GAAP net income (loss) per share are adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and amortization of acquired intangibles. Non-GAAP total research and development is adjusted for capitalized internally developed software costs and to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises. Please note that other companies may define their non-GAAP financial measures differently than we do. Management presents certain non-GAAP financial measures in this release because

 



 

it considers them to be important supplemental measures of performance. Management uses these non-GAAP financial measures for planning purposes, including analysis of the company’s performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management believes that these non-GAAP financial measures provide additional insight for analysts and investors in evaluating the company’s financial and operational performance. Management also intends to provide these non-GAAP financial measures as part of the company’s future earnings discussions and, therefore, the inclusion of the non-GAAP financial measures should provide consistency in the company’s financial reporting. Non-GAAP financial measures have limitations as an analytical tool. Investors are encouraged to review the reconciliation of the non-GAAP measures to their most directly comparable GAAP measures provided in this release.

 

Safe Harbor/forward looking statements

 

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included herein regarding Paylocity’s future operations, future financial position and performance, future revenues, projected costs, prospects, plans and objectives of management are forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “will,” “would,” “seek” and similar expressions (or the negative of these terms) are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include, among other things, statements about management’s estimates regarding future revenues and financial performance and other statements about management’s beliefs, intentions or goals.  Paylocity may not actually achieve the expectations disclosed in the forward-looking statements, and you should not place undue reliance on Paylocity’s forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results or events to differ materially from the expectations disclosed in the forward-looking statements, including, but not limited to, risks related to Paylocity’s ability to retain existing clients and to attract new clients to enter into subscriptions for its services; Paylocity’s ability to service clients effectively; Paylocity’s ability to expand its sales organization to effectively address new geographies; Paylocity’s ability to continue to expand its referral network of third parties; Paylocity’s ability to accurately forecast revenue and appropriately plan its expenses; Paylocity’s ability to manage its growth effectively; Paylocity’s ability to forecast its tax position, including but not limited to the assessment of the need for a valuation allowance against its deferred tax position; continued acceptance of SaaS as an effective method for delivery of payroll and HCM solutions; Paylocity’s ability to protect and defend its intellectual property; unexpected events in the market for Paylocity’s solutions; future regulatory, judicial and legislative changes in its industry; changes in the competitive environment in Paylocity’s industry and the market in which it operates; adverse changes in general economic or market conditions; changes in the employment rates of Paylocity’s clients and the resultant impact on revenue; and other risks and potential factors that could affect Paylocity’s business and financial results identified in Paylocity’s filings with the Securities and Exchange Commission (the “SEC”), including its 10-K filed with the SEC on August 22, 2014.  Additional information will also be set forth in Paylocity’s future quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings that Paylocity makes with the SEC.  These forward-looking statements represent Paylocity’s expectations as of the date of this press release. Subsequent events may cause these expectations to change, and Paylocity disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.

 



 

PAYLOCITY HOLDING CORPORATION

Unaudited Consolidated Balance Sheets

(in thousands, except per share data)

 

 

 

June 30,

 

March 31,

 

 

 

2014

 

2015

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

78,848

 

$

93,227

 

Accounts receivable, net

 

756

 

1,070

 

Prepaid expenses and other

 

2,694

 

4,844

 

Deferred income tax assets, net

 

706

 

684

 

 

 

 

 

 

 

Total current assets before funds held for clients

 

83,004

 

99,825

 

Funds held for clients

 

417,261

 

731,616

 

 

 

 

 

 

 

Total current assets

 

500,265

 

831,441

 

Long-term prepaid expenses

 

313

 

213

 

Capitalized software, net

 

5,093

 

6,206

 

Property and equipment, net

 

13,125

 

15,715

 

Intangible assets, net

 

6,320

 

5,750

 

Goodwill

 

3,035

 

3,035

 

 

 

 

 

 

 

Total assets

 

$

528,151

 

$

862,360

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

2,133

 

$

2,122

 

Taxes payable

 

5

 

 

Consideration related to acquisition

 

2,985

 

 

Accrued expenses

 

10,744

 

15,985

 

 

 

 

 

 

 

Total current liabilities before client fund obligations

 

15,867

 

18,107

 

Client fund obligations

 

417,261

 

731,616

 

 

 

 

 

 

 

Total current liabilities

 

433,128

 

749,723

 

Deferred rent

 

3,175

 

3,020

 

Deferred income tax liabilities, net

 

714

 

751

 

 

 

 

 

 

 

Total liabilities

 

$

437,017

 

$

753,494

 

Stockholders’ equity:

 

 

 

 

 

Preferred stock, $0.001 par value, 5,000 authorized, no shares issued and outstanding at June 30, 2014 and March 31, 2015

 

 

 

Common stock, $0.001 par value, 155,000 shares authorized at June 30, and March 31, 2015, 49,564 shares issued and outstanding at June 30, 2014; and 50,616 shares issued and outstanding at March 31, 2015

 

50

 

51

 

Additional paid-in capital

 

125,255

 

152,529

 

Accumulated deficit

 

(34,171

)

(43,714

)

Total stockholders’ equity

 

$

91,134

 

$

108,866

 

Total liabilities and stockholders’ equity

 

$

528,151

 

$

862,360

 

 



 

PAYLOCITY HOLDING CORPORATION

Unaudited Consolidated Statements of Operations

(in thousands, except per share data)

 

 

 

Three months ended
March 31,

 

Nine months ended
March 31,

 

 

 

2014

 

2015

 

2014

 

2015

 

Revenues:

 

 

 

 

 

 

 

 

 

Recurring fees

 

$

30,719

 

$

43,335

 

$

73,602

 

$

104,532

 

Interest income on funds held for clients

 

491

 

601

 

1,222

 

1,354

 

 

 

 

 

 

 

 

 

 

 

Total recurring revenues

 

31,210

 

43,936

 

74,824

 

105,886

 

Implementation services and other

 

2,556

 

3,336

 

5,216

 

6,808

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

33,766

 

47,272

 

80,040

 

112,694

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

Recurring revenues

 

10,246

 

12,606

 

27,320

 

34,616

 

Implementation services and other

 

4,679

 

6,676

 

12,670

 

18,164

 

 

 

 

 

 

 

 

 

 

 

Total cost of revenues

 

14,925

 

19,282

 

39,990

 

52,780

 

Gross profit

 

18,841

 

27,990

 

40,050

 

59,914

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Sales and marketing

 

8,678

 

12,673

 

19,290

 

31,152

 

Research and development

 

2,443

 

5,053

 

6,746

 

14,351

 

General and administrative

 

5,587

 

8,559

 

14,726

 

24,068

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

16,708

 

26,285

 

40,762

 

69,571

 

Operating income (loss)

 

2,133

 

1,705

 

(712

)

(9,657

)

Other income (expense)

 

59

 

51

 

109

 

180

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

2,192

 

1,756

 

(603

)

(9,477

)

Income tax benefit (expense)

 

(1,042

)

(4

)

197

 

(66

)

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

1,150

 

$

1,752

 

$

(406

)

$

(9,543

)

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to common stockholders

 

$

430

 

$

1,752

 

$

(2,688

)

$

(9,543

)

Net income (loss) per share attributable to common stockholders:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.01

 

$

0.03

 

$

(0.08

)

$

(0.19

)

Diluted

 

$

0.01

 

$

0.03

 

$

(0.08

)

$

(0.19

)

Weighted-average shares used in computing net income (loss) per share attributable to common stockholders:

 

 

 

 

 

 

 

 

 

Basic

 

44,360

 

50,533

 

32,437

 

49,954

 

Diluted

 

44,870

 

52,203

 

32,437

 

49,954

 

 

Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises are included in the above line items:

 

 

 

Three months ended
March 31,

 

Nine months ended
March 31,

 

 

 

2014

 

2015

 

2014

 

2015

 

Cost of revenue - recurring

 

$

113

 

$

442

 

$

113

 

$

1,256

 

Cost of revenue - implementation services and other

 

97

 

360

 

97

 

1,039

 

Sales and marketing

 

175

 

922

 

175

 

2,716

 

Research and development

 

139

 

756

 

139

 

2,141

 

General and administrative

 

841

 

1,205

 

1,190

 

3,731

 

Total

 

$

1,365

 

$

3,685

 

$

1,714

 

$

10,883

 

 



 

PAYLOCITY HOLDING CORPORATION

Unaudited Consolidated Statements of Cash Flows

(in thousands)

 

 

 

Nine Months Ended March 31,

 

 

 

2014

 

2015

 

Cash flows provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(406

)

$

(9,543

)

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

 

 

 

 

 

Stock-based compensation

 

1,714

 

10,672

 

Depreciation and amortization

 

4,544

 

6,245

 

Deferred income tax (benefit) expense

 

(58

)

59

 

Provision for doubtful accounts

 

79

 

89

 

Loss on disposal of equipment

 

 

45

 

Changes in operating assets and liabilities:

 

 

 

 

 

Accounts receivable

 

(130

)

(403

)

Prepaid expenses

 

(1,629

)

(2,042

)

Trade accounts payable

 

947

 

359

 

Accrued expenses

 

3,016

 

4,720

 

Net cash provided by operating activities

 

8,077

 

10,201

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

Capitalized internally developed software costs

 

(2,919

)

(2,544

)

Purchases of property and equipment

 

(4,954

)

(6,331

)

Payments for acquisition

 

 

(2,985

)

Net change in funds held for clients

 

(185,818

)

(314,355

)

Net cash used in investing activities

 

(193,691

)

(326,215

)

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

Net change in client funds obligation

 

185,818

 

314,355

 

Proceeds from follow-on offering, net of cash paid for issuance costs

 

 

18,367

 

Proceeds from initial public offering, net of issuance costs

 

82,709

 

 

Payments on initial public offering costs

 

 

(75

)

Proceeds from exercise of stock options

 

 

247

 

Proceeds from employee stock purchase plan

 

 

670

 

Taxes paid related to net share settlement of equity awards

 

 

(3,171

)

Principal payments on long-term debt

 

(1,563

)

 

Net cash provided by financing activities

 

266,964

 

330,393

 

Net Change in Cash and Cash Equivalents

 

81,350

 

14,379

 

Cash and Cash Equivalents—Beginning of Year

 

7,594

 

78,848

 

Cash and Cash Equivalents—End of Year

 

$

88,944

 

$

93,227

 

Supplemental Disclosure of Non-Cash Investing and Financing Activities

 

 

 

 

 

Build-out allowance received from landlord

 

$

580

 

$

253

 

Unpaid initial offering costs

 

$

678

 

 

Purchase of property and equipment, accrued but not paid

 

$

784

 

$

701

 

Supplemental disclosure of cash flow information

 

 

 

 

 

Cash paid for income taxes

 

$

202

 

$

28

 

Cash paid for interest

 

$

70

 

 

 



 

Paylocity Holding Corporation

Reconciliation of GAAP to non-GAAP Financial Measures

(In thousands except per share data)

 

 

 

Three months
Ended
March 31,

 

Nine months
Ended
March 31,

 

 

 

2014

 

2015

 

2014

 

2015

 

Reconciliation from gross profit to adjusted gross profit:

 

 

 

 

 

 

 

 

 

Gross profit

 

$

18,841

 

$

27,990

 

$

40,050

 

$

59,914

 

Amortization of capitalized research and development costs

 

580

 

643

 

1,809

 

1,921

 

Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises

 

210

 

802

 

210

 

2,295

 

Adjusted gross profit

 

$

19,631

 

$

29,435

 

$

42,069

 

$

64,130

 

 

 

 

Three months
Ended
March 31,

 

Nine months
Ended
March 31,

 

 

 

2014

 

2015

 

2014

 

2015

 

Reconciliation from total recurring revenues to adjusted recurring gross profit:

 

 

 

 

 

 

 

 

 

Total recurring revenues

 

$

31,210

 

$

43,936

 

$

74,824

 

$

105,886

 

Cost of recurring revenues

 

10,246

 

12,606

 

27,320

 

34,616

 

Recurring gross profit

 

20,964

 

31,330

 

47,504

 

71,270

 

Amortization of capitalized research and development costs

 

580

 

643

 

1,809

 

1,921

 

Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises

 

113

 

442

 

113

 

1,256

 

Adjusted recurring gross profit

 

$

21,657

 

$

32,415

 

$

49,426

 

$

74,447

 

 

 

 

Three months
Ended
March 31,

 

Nine months
Ended
March 31,

 

 

 

2014

 

2015

 

2014

 

2015

 

Reconciliation from net income (loss) to Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

1,150

 

$

1,752

 

$

(406

)

$

(9,543

)

Interest expense

 

22

 

 

67

 

 

Income tax expense (benefit)

 

1,042

 

4

 

(197

)

66

 

Depreciation and amortization

 

1,620

 

2,085

 

4,544

 

6,245

 

EBITDA

 

3,834

 

3,841

 

4,008

 

(3,232

)

Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises

 

1,365

 

3,685

 

1,714

 

10,883

 

Adjusted EBITDA

 

$

5,199

 

$

7,526

 

$

5,722

 

$

7,651

 

 

 

 

Three months
Ended
March 31,

 

Nine months
Ended
March 31,

 

 

 

2014

 

2015

 

2014

 

2015

 

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

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

2,133

 

$

1,705

 

$

(712

)

$

(9,657

)

Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises

 

1,365

 

3,685

 

1,714

 

10,883

 

Non-GAAP operating income

 

$

3,498

 

$

5,390

 

$

1,002

 

$

1,226

 

 

 

 

Three months
Ended
March 31,

 

Nine months
Ended
March 31,

 

 

 

2014

 

2015

 

2014

 

2015

 

Reconciliation from net income (loss) to non-GAAP net income:

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

1,150

 

$

1,752

 

$

(406

)

$

(9,543

)

Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises

 

833

 

3,685

 

1,046

 

10,883

 

Amortization of acquired intangibles

 

 

190

 

 

570

 

Non-GAAP net income

 

$

1,983

 

$

5,627

 

$

640

 

$

1,910

 

 

 

 

Three months
Ended
March 31,

 

Nine months
Ended
March 31,

 

 

 

2014

 

2015

 

2014

 

2015

 

Calculation of non-GAAP net income per share:

 

 

 

 

 

 

 

 

 

Non-GAAP net income

 

$

1,983

 

$

5,627

 

$

640

 

$

1,910

 

Pro forma weighted average number of shares of common stock

 

44,870

 

52,203

 

44,576

 

49,954

 

Non-GAAP net income per share

 

$

0.04

 

$

0.11

 

$

0.01

 

$

0.04

 

 

 

 

Three months
Ended
March 31,

 

Nine months
Ended
March 31,

 

 

 

2014

 

2015

 

2014

 

2015

 

Reconciliation of non-GAAP Sales and Marketing:

 

 

 

 

 

 

 

 

 

Sales and Marketing

 

$

8,678

 

$

12,673

 

$

19,290

 

$

31,152

 

Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises

 

175

 

922

 

175

 

2,716

 

Non-GAAP Sales and Marketing

 

$

8,503

 

$

11,751

 

$

19,115

 

$

28,436

 

 

 

 

Three months
Ended
March 31,

 

Nine months
Ended
March 31,

 

 

 

2014

 

2015

 

2014

 

2015

 

Reconciliation of non-GAAP Total Research and Development:

 

 

 

 

 

 

 

 

 

Research and Development

 

$

2,443

 

$

5,053

 

$

6,746

 

$

14,351

 

Capitalized internally developed software costs

 

1,060

 

965

 

2,919

 

2,544

 

Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises

 

139

 

756

 

139

 

2,141

 

Non-GAAP Total Research and Development

 

$

3,364

 

$

5,262

 

$

9,526

 

$

14,754

 

 

 

 

Three months
Ended
March 31,

 

Nine months
Ended
March 31,

 

 

 

2014

 

2015

 

2014

 

2015

 

Reconciliation of non-GAAP General and Administrative:

 

 

 

 

 

 

 

 

 

General and Administrative

 

$

5,587

 

$

8,559

 

$

14,726

 

$

24,068

 

Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises

 

841

 

1,205

 

1,190

 

3,731

 

Non-GAAP General and Administrative

 

$

4,746

 

$

7,354

 

$

13,536

 

$

20,337