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): February 2, 2017

 

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 February 2, 2017, Paylocity Holding Corporation (the “Company”) issued a press release announcing financial results for the three month period ended December 31, 2016.  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 February 2, 2017 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 February 2, 2017.

 

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: February 2, 2017

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 February 2, 2017.

 

4


Exhibit 99.1

 

                                                                                                     

Paylocity Announces Second Quarter Fiscal Year 2017 Financial Results

 

·                  Q2 2017 Total Revenue of $68.7 million, up 24% year-over-year

·                  Q2 2017 Recurring Revenue of $66.1 million, up 26% year-over-year

 

Arlington Heights, IL. — February 2, 2017 — Paylocity Holding Corporation (Nasdaq: PCTY), a cloud-based provider of payroll and human capital management software solutions, today announced financial results for the second quarter of fiscal year 2017, which ended December 31, 2016.

 

“I was pleased with our second quarter in terms of both top and bottom line performance given the challenge in comparing to the record-setting revenue growth in the second quarter of last fiscal year.” said Steve Beauchamp, President and Chief Executive Officer of Paylocity. “We continue to realize value from our product investments, as our newly released Recruiting product is off to a good start and we just launched our newest module, Expense Management. We continue to focus on investments in both our products and our people and were recently recognized as the #14 Best Places to Work in the Glassdoor Employees’ Choice Award.”

 



 

Second Quarter Fiscal 2017 Financial Highlights

 

Revenue:

 

·                  Total revenue was $68.7 million, an increase of 24% from the second quarter of fiscal year 2016.

 

·                  Total recurring revenue was $66.1 million, representing 96% of total revenue and an increase of 26% from the second quarter of fiscal year 2016.

 

Operating Income (Loss):

 

·                  GAAP operating loss was ($1.6) million, compared to an operating loss of ($1.3) million in the second quarter of fiscal year 2016.

 

·                  Non-GAAP operating income was $5.4 million, compared to non-GAAP operating income of $4.0 million in the second quarter of fiscal year 2016.

 

Net Income (Loss):

 

·                  GAAP net loss was ($1.7) million. This compares to a net loss of ($1.2) million for the second quarter of fiscal year 2016. Net loss per share was ($0.03) for the second quarter of fiscal year 2017 based on 51.4 million basic and diluted weighted average common shares outstanding. Net loss per share was ($0.02) for the second quarter of fiscal year 2016, based on 50.9 million basic and diluted weighted average common shares outstanding.

 

·                  Non-GAAP net income was $5.4 million. This compares to non-GAAP net income of $4.1 million for the second quarter of fiscal year 2016. Non-GAAP net income per share was $0.10 for the second quarter of fiscal year 2017, based on 53.9 million pro forma diluted weighted average common shares outstanding. Non-GAAP net income per share was $0.08 for the second quarter of fiscal year 2016, based on 53.7 million pro forma diluted weighted average common shares outstanding.

 

Adjusted EBITDA:

 

·                  Adjusted EBITDA, a non-GAAP measure, was $9.9 million compared to Adjusted EBITDA of $7.2 million in the second quarter of fiscal year 2016.

 



 

Balance Sheet and Cash Flow:

 

·                  Cash and cash equivalents totaled $82.3 million at the end of the quarter.

 

·                  Cash flow from operations for the second quarter of fiscal year 2017 was $13.5 million compared to $7.8 million for the second quarter of fiscal year 2016.

 

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 February 2, 2017, Paylocity is issuing guidance for the third quarter and full fiscal year 2017 as indicated below.

 

Third Quarter 2017:

 

·                  Total revenue is expected to be in the range of $87.5 million to $88.5 million.

·                  Adjusted EBITDA is expected to be in the range of $17.0 million to $18.0 million.

·                  Non-GAAP net income is expected to be in the range of $12.0 million to $13.0 million, or $0.22 to $0.24 per share, based on approximately 54 million diluted weighted average common shares outstanding.

 

Fiscal Year 2017:

 

·                  Total revenue is expected to be in the range of $296.0 million to $298.0 million.

·                  Adjusted EBITDA is expected to be in the range of $42.0 million to $43.0 million.

·                  Non-GAAP net income is expected to be in the range of $22.5 million to $23.5 million, or $0.41 to $0.43 per share, based on approximately 55 million diluted weighted average common shares outstanding.

 

We are unable to reconcile these forward-looking non-GAAP financial measures to their directly comparable GAAP financial measures because the information which is needed to complete a reconciliation is unavailable at this time without unreasonable effort.

 



 

Conference Call Details

 

Paylocity will host a conference call to discuss its second quarter fiscal year 2017 results at 4:00 p.m. Central Time today (5:00 Eastern Time). A live audio webcast of the conference call, together with detailed financial information, 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 39058974. 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, income tax expense, 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 internal-use software costs. Non-GAAP operating income (loss) is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and the amortization of acquired intangibles. Non-GAAP sales and marketing expense is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises. Non-GAAP general and administrative expense is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and the amortization of acquired intangibles. 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 the amortization of acquired intangibles. Pro forma diluted weighted average

 



 

number of common shares are adjusted for the weighted average effect of potentially diluted shares. Non-GAAP total research and development is adjusted for capitalized internal-use 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 regulatory, legislative and judicial uncertainty in Paylocity’s markets, including the potential repeal or replacement of the Affordable Care Act; Paylocity’s ability to retain existing clients and to attract new clients to enter into subscriptions for its services; Paylocity’s ability to sell new products and retain subscriptions for its existing products, such as ACA Enhanced, to its new and existing clients; the challenges associated with a growing company’s ability to effectively service clients in a dynamic and competitive market; challenges associated with expanding and evolving a sales organization to effectively address new geographies and products and services; Paylocity’s reliance on and ability to expand its referral network of third parties; difficulties associated with accurately forecasting revenue and appropriately planning expenses; challenges with managing growth effectively; difficulties in forecasting Paylocity’s 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; the risk that Paylocity’s security measures are compromised or the unauthorized access to customer data; unexpected events in the market for

 



 

Paylocity’s solutions; changes in the competitive environment in Paylocity’s industry and the markets 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 12, 2016.  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,

 

December 31,

 

 

 

2016

 

2016

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

86,496

 

$

82,257

 

Accounts receivable, net

 

1,681

 

2,067

 

Prepaid expenses and other

 

7,409

 

11,291

 

 

 

 

 

 

 

Total current assets before funds held for clients

 

95,586

 

95,615

 

Funds held for clients

 

1,239,622

 

1,092,471

 

 

 

 

 

 

 

Total current assets

 

1,335,208

 

1,188,086

 

Long-term prepaid expenses

 

845

 

618

 

Capitalized internal-use software, net

 

11,427

 

14,944

 

Property and equipment, net

 

26,787

 

33,633

 

Intangible assets, net

 

10,419

 

9,657

 

Goodwill

 

6,003

 

6,003

 

 

 

 

 

 

 

Total assets

 

$

1,390,689

 

$

1,252,941

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,621

 

$

3,134

 

Accrued expenses

 

24,979

 

22,096

 

 

 

 

 

 

 

Total current liabilities before client fund obligations

 

26,600

 

25,230

 

Client fund obligations

 

1,239,622

 

1,092,471

 

 

 

 

 

 

 

Total current liabilities

 

1,266,222

 

1,117,701

 

Deferred rent

 

4,646

 

9,548

 

Deferred income tax liabilities, net

 

249

 

351

 

 

 

 

 

 

 

Total liabilities

 

$

1,271,117

 

$

1,127,600

 

Stockholders’ equity:

 

 

 

 

 

Preferred stock, $0.001 par value, 5,000 authorized, no shares issued and outstanding at June 30, 2016 and December 31, 2016

 

$

 

$

 

Common stock, $0.001 par value, 155,000 shares authorized at June 30, 2016 and December 31, 2016; 51,132 shares issued and outstanding at June 30, 2016 and 51,430 shares issued and outstanding at December 31, 2016

 

51

 

51

 

Additional paid-in capital

 

171,515

 

181,523

 

Accumulated deficit

 

(51,994

)

(56,233

)

Total stockholders’ equity

 

$

119,572

 

$

125,341

 

Total liabilities and stockholders’ equity

 

$

1,390,689

 

$

1,252,941

 

 



 

PAYLOCITY HOLDING CORPORATION

Unaudited Consolidated Statements of Operations

(in thousands, except per share data)

 

 

 

Three months ended
December 31,

 

Six months ended
December 31,

 

 

 

2015

 

2016

 

2015

 

2016

 

Revenues:

 

 

 

 

 

 

 

 

 

Recurring fees

 

$

51,732

 

$

65,347

 

$

94,095

 

$

127,267

 

Interest income on funds held for clients

 

615

 

731

 

1,143

 

1,448

 

Total recurring revenues

 

52,347

 

66,078

 

95,238

 

128,715

 

Implementation services and other

 

2,837

 

2,576

 

5,054

 

4,961

 

Total revenues

 

55,184

 

68,654

 

100,292

 

133,676

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

Recurring revenues

 

16,125

 

20,716

 

29,282

 

39,819

 

Implementation services and other

 

7,975

 

9,667

 

15,013

 

18,923

 

Total cost of revenues

 

24,100

 

30,383

 

44,295

 

58,742

 

Gross profit

 

31,084

 

38,271

 

55,997

 

74,934

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Sales and marketing

 

14,340

 

17,735

 

26,790

 

35,746

 

Research and development

 

6,799

 

7,222

 

12,228

 

14,523

 

General and administrative

 

11,239

 

14,957

 

21,690

 

28,815

 

Total operating expenses

 

32,378

 

39,914

 

60,708

 

79,084

 

Operating loss

 

(1,294

)

(1,643

)

(4,711

)

(4,150

)

Other income

 

214

 

4

 

297

 

43

 

Loss before income taxes

 

(1,080

)

(1,639

)

(4,414

)

(4,107

)

Income tax expense

 

85

 

32

 

186

 

132

 

Net loss

 

$

(1,165

)

$

(1,671

)

$

(4,600

)

$

(4,239

)

 

 

 

 

 

 

 

 

 

 

Net loss per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.02

)

$

(0.03

)

$

(0.09

)

$

(0.08

)

Diluted

 

$

(0.02

)

$

(0.03

)

$

(0.09

)

$

(0.08

)

Weighted-average shares used in computing net loss per share:

 

 

 

 

 

 

 

 

 

Basic

 

50,890

 

51,384

 

50,817

 

51,308

 

Diluted

 

50,890

 

51,384

 

50,817

 

51,308

 

 

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
December 31,

 

Six months ended
December 31,

 

 

 

2015

 

2016

 

2015

 

2016

 

Cost of revenue - recurring

 

$

461

 

$

600

 

$

858

 

$

1,205

 

Cost of revenue - implementation services and other

 

311

 

373

 

602

 

721

 

Sales and marketing

 

1,228

 

1,697

 

2,155

 

3,294

 

Research and development

 

823

 

877

 

1,450

 

1,777

 

General and administrative

 

2,057

 

3,127

 

3,721

 

5,848

 

Total

 

$

4,880

 

$

6,674

 

$

8,786

 

$

12,845

 

 



 

PAYLOCITY HOLDING CORPORATION

Unaudited Consolidated Statements of Cash Flows

(in thousands)

 

 

 

Six Months Ended
December 31,

 

 

 

2015

 

2016

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(4,600

)

$

(4,239

)

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

 

 

 

 

 

Stock-based compensation expense

 

8,492

 

12,448

 

Depreciation and amortization expense

 

6,155

 

9,103

 

Deferred income tax expense

 

151

 

102

 

Provision for doubtful accounts

 

75

 

60

 

Loss on disposal of equipment

 

168

 

97

 

Changes in operating assets and liabilities:

 

 

 

 

 

Accounts receivable

 

(428

)

(446

)

Prepaid expenses

 

(891

)

845

 

Trade accounts payable

 

653

 

46

 

Accrued expenses

 

1,039

 

(2,626

)

Net cash provided by operating activities

 

10,814

 

15,390

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

Capitalized internal-use software costs

 

(3,775

)

(6,279

)

Purchases of property and equipment

 

(6,865

)

(10,038

)

Payments for acquisitions

 

(183

)

 

Net change in funds held for clients

 

(291,918

)

147,151

 

Net cash provided by (used in) investing activities

 

(302,741

)

130,834

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

Net change in client funds obligation

 

291,918

 

(147,151

)

Proceeds from exercise of stock options

 

137

 

 

Proceeds from employee stock purchase plan

 

1,403

 

1,823

 

Taxes paid related to net share settlement of equity awards

 

(3,765

)

(5,135

)

Net cash provided by (used in) financing activities

 

289,693

 

(150,463

)

Net Change in Cash and Cash Equivalents

 

(2,234

)

(4,239

)

Cash and Cash Equivalents—Beginning of Period

 

81,258

 

86,496

 

Cash and Cash Equivalents—End of Period

 

$

79,024

 

$

82,257

 

Supplemental Disclosure of Non-Cash Investing and Financing Activities Build-out allowance received from landlord

 

$

55

 

$

 

Unpaid follow-on offering costs included in accrued expenses

 

$

152

 

$

 

Purchase of property and equipment, accrued but not paid

 

$

1,531

 

$

2,172

 

Supplemental Disclosure of Cash Flow Information Cash paid for income taxes, net of refunds

 

$

22

 

$

26

 

 



 

Paylocity Holding Corporation

Reconciliation of GAAP to non-GAAP Financial Measures

(In thousands except per share data)

 

 

 

Three months
Ended
December 31,

 

Six months
Ended
December 31,

 

 

 

2015

 

2016

 

2015

 

2016

 

Reconciliation from gross profit to adjusted gross profit:

 

 

 

 

 

 

 

 

 

Gross profit

 

$

31,084

 

$

38,271

 

$

55,997

 

$

74,934

 

Amortization of capitalized internal-use software costs

 

1,423

 

1,950

 

2,365

 

3,634

 

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

 

772

 

973

 

1,460

 

1,926

 

Adjusted gross profit

 

$

33,279

 

$

41,194

 

$

59,822

 

$

80,494

 

 

 

 

Three months
 Ended 
December 31,

 

Six months 
Ended 
December 31,

 

 

 

2015

 

2016

 

2015

 

2016

 

Reconciliation from total recurring revenues to adjusted recurring gross profit:

 

 

 

 

 

 

 

 

 

Total recurring revenues

 

$

52,347

 

$

66,078

 

$

95,238

 

$

128,715

 

Cost of recurring revenues

 

16,125

 

20,716

 

29,282

 

39,819

 

Recurring gross profit

 

36,222

 

45,362

 

65,956

 

88,896

 

Amortization of capitalized internal-use software costs

 

1,423

 

1,950

 

2,365

 

3,634

 

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

 

461

 

600

 

858

 

1,205

 

Adjusted recurring gross profit

 

$

38,106

 

$

47,912

 

$

69,179

 

$

93,735

 

 

 

 

Three months 
Ended 
December 31,

 

Six months 
Ended 
December 31,

 

 

 

2015

 

2016

 

2015

 

2016

 

Reconciliation from operating loss to non-GAAP operating income:

 

 

 

 

 

 

 

 

 

Operating loss

 

$

(1,294

)

$

(1,643

)

$

(4,711

)

$

(4,150

)

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

 

4,880

 

6,674

 

8,786

 

12,845

 

Amortization of acquired intangibles

 

381

 

381

 

761

 

762

 

Non-GAAP operating income

 

$

3,967

 

$

5,412

 

$

4,836

 

$

9,457

 

 

 

 

Three months 
Ended 
December 31,

 

Six months 
Ended 
December 31,

 

 

 

2015

 

2016

 

2015

 

2016

 

Reconciliation from net loss to non-GAAP net income:

 

 

 

 

 

 

 

 

 

Net loss

 

$

(1,165

)

$

(1,671

)

$

(4,600

)

$

(4,239

)

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

 

4,880

 

6,674

 

8,786

 

12,845

 

Amortization of acquired intangibles

 

381

 

381

 

761

 

762

 

Non-GAAP net income

 

$

4,096

 

$

5,384

 

$

4,947

 

$

9,368

 

 

 

 

Three months 
Ended 
December 31,

 

Six months 
Ended 
December 31,

 

 

 

2015

 

2016

 

2015

 

2016

 

Reconciliation from diluted weighted-average number of common shares as reported to pro forma diluted weighted-average number of common shares

 

 

 

 

 

 

 

 

 

Diluted weighted-average number of common shares, as reported

 

50,890

 

51,384

 

50,817

 

51,308

 

Weighted-average effect of potentially dilutive shares

 

2,830

 

2,534

 

2,763

 

2,689

 

Pro forma diluted weighted-average number of common shares

 

53,720

 

53,918

 

53,580

 

53,997

 

 

 

 

 

Three months 
Ended 
December 31,

 

Six months 
Ended 
December 31,

 

 

 

2015

 

2016

 

2015

 

2016

 

Calculation of non-GAAP net income per share:

 

 

 

 

 

 

 

 

 

Non-GAAP net income

 

$

4,096

 

$

5,384

 

$

4,947

 

$

9,368

 

Pro forma diluted weighted-average number of common shares

 

53,720

 

53,918

 

53,580

 

53,997

 

Non-GAAP net income per share

 

$

0.08

 

$

0.10

 

$

0.09

 

$

0.17

 

 

 

 

Three months 
Ended 
December 31,

 

Six months 
Ended 
December 31,

 

 

 

2015

 

2016

 

2015

 

2016

 

Reconciliation from net loss to Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

Net loss

 

$

(1,165

)

$

(1,671

)

$

(4,600

)

$

(4,239

)

Interest expense

 

 

 

 

 

Income tax expense

 

85

 

32

 

186

 

132

 

Depreciation and amortization

 

3,436

 

4,835

 

6,155

 

9,103

 

EBITDA

 

2,356

 

3,196

 

1,741

 

4,996

 

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

 

4,880

 

6,674

 

8,786

 

12,845

 

Adjusted EBITDA

 

$

7,236

 

$

9,870

 

$

10,527

 

$

17,841

 

 

 

 

Three months 
Ended 
December 31,

 

Six months 
Ended 
December 31,

 

 

 

2015

 

2016

 

2015

 

2016

 

Reconciliation of non-GAAP Sales and Marketing:

 

 

 

 

 

 

 

 

 

Sales and Marketing

 

$

14,340

 

$

17,735

 

$

26,790

 

$

35,746

 

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

 

1,228

 

1,697

 

2,155

 

3,294

 

Non-GAAP Sales and Marketing

 

$

13,112

 

$

16,038

 

$

24,635

 

$

32,452

 

 

 

 

Three months 
Ended 
December 31,

 

Six months 
Ended 
December 31,

 

 

 

2015

 

2016

 

2015

 

2016

 

Reconciliation of non-GAAP Total Research and Development:

 

 

 

 

 

 

 

 

 

Research and Development

 

$

6,799

 

$

7,222

 

$

12,228

 

$

14,523

 

Capitalized internal-use software costs

 

1,732

 

3,392

 

3,775

 

6,279

 

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

 

823

 

877

 

1,450

 

1,777

 

Non-GAAP Total Research and Development

 

$

7,708

 

$

9,737

 

$

14,553

 

$

19,025

 

 

 

 

Three months
Ended 
December 31,

 

Six months
Ended 
December 31,

 

 

 

2015

 

2016

 

2015

 

2016

 

Reconciliation of non-GAAP General and Administrative:

 

 

 

 

 

 

 

 

 

General and Administrative

 

$

11,239

 

$

14,957

 

$

21,690

 

$

28,815

 

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

 

2,057

 

3,127

 

3,721

 

5,848

 

Amortization of acquired intangibles

 

381

 

381

 

761

 

762

 

Non-GAAP General and Administrative

 

$

8,801

 

$

11,449

 

$

17,208

 

$

22,205