Xoom Reports Third Quarter 2013 Results

- Revenue of $32.3 Million, increase of 62% from Q3 2012         

- Gross Sending Volume of $1.5 Billion, increase of 95% from Q3 2012          

- 997,753 Active Customers, increase of 39% from Q3 2012

SAN FRANCISCO, Oct. 22, 2013 (GLOBE NEWSWIRE) -- Xoom Corporation (Nasdaq:XOOM), a leading digital money transfer provider, today announced financial results for the third quarter of 2013:

• Revenue for the third quarter was $32.3 million, an increase of 62% from the third quarter of 2012.
   
• Gross profit for the third quarter was $21.9 million, an increase of 64% from the third quarter of 2012.
   
• GAAP net income for the third quarter was $1.2 million, or $0.03 per diluted share, compared to a net loss of $2.3 million, or a loss of $0.45 per diluted share, for the third quarter of 2012.
   
• Adjusted EBITDA for the third quarter was $3.3 million, compared to a loss of $828,000 for the third quarter of 2012.
   
• Non-GAAP earnings per diluted share was $0.06, compared to a loss of $0.31 per diluted share for the third quarter of 2012. 
   
• In September, we closed a follow-on public offering resulting in net proceeds to the Company of $104.8 million.
   
• Cash, cash equivalents, disbursement prefunding and short-term investments were $239.5 million as of September 30, 2013, compared to $85.3 million as of December 31, 2012.
   
• As of September 30, 2013, we had no outstanding balance under our line of credit, compared to $40 million as of December 31, 2012.

"The quarter's strong performance across all corridors illustrates the demand for Xoom's digital remittance solution," said John Kunze, president and chief executive officer, Xoom. "We are pleased that consumers continue to choose Xoom as their preferred money transfer solution."  

Operating Metrics

• Gross sending volume for the quarter grew 95% to $1.5 billion from the third quarter of 2012.
• Transactions for the quarter grew 56% to 2,622,600 from the third quarter of 2012.
• Active customers for the quarter grew 39% to 997,753 from the third quarter of 2012.
• New customers for the quarter grew 31% to 123,600 from the third quarter of 2012.

Highlights and Strategic Announcements

• During the quarter, Xoom announced two initiatives to extend its reach in the Latin American and Indian communities:
  
  -- In early July, Xoom launched its Money Transfer App in Spanish for Android and iOS devices. The new App in Spanish provides customers a fast and simple channel to send money to loved ones anytime, anywhere. 
  
  -- In late July, Xoom announced its money transfer service for non-resident Indians (NRIs) sending to non-resident external (NRE) and non-resident ordinary (NRO) bank accounts in India. NRIs can now deposit money to NRE/NRO accounts within a breakthrough speed of four hours. 
   
• In July, Xoom announced a partnership with Easypagos to offer Xoom customers more options when sending money to Ecuador. The partnership expands Xoom's payout network to more than 1,000 locations in Ecuador, including banks such as Banco Pichincha and Banco de Guayaquil. 

Business Outlook

For Q4 2013, Xoom estimates the following:

• Revenue to be between $30.2 million and $31.2 million.
• Adjusted EBITDA to be between breakeven and a profit of $1.0 million.
• GAAP diluted net loss per share to be in the range of $0.07 to $0.05.
• Non-GAAP diluted net loss per share to be in the range of $0.03 to $0.01.

For Full Year 2013, Xoom estimates the following:

• Revenue to be between $120.3 million and $121.3 million.
• Adjusted EBITDA to be between $11.0 million and $12.0 million.
• GAAP diluted net income per share to be in the range of $0.06 to $0.09.
• Non-GAAP diluted net income per share to be in the range of $0.18 to $0.21.

Xoom plans to host a conference call today to review its third quarter 2013 results and to discuss its financial outlook for the fourth quarter and full year 2013. The conference call can be accessed by dialing the toll free number (877) 440-7574 or the international number (253) 237-1314. The call is scheduled to begin at 2:00 p.m. PT / 5:00 p.m. ET and can be accessed via the Web at ir.xoom.com. The webcast will be available live, and a replay will be available following completion of the live broadcast for approximately 60 days.

About Xoom

Xoom is a leading digital money transfer provider, focused on helping consumers send money in a secure, fast and cost-effective way using their mobile phone, tablet or computer. During the 12 month period ended September 30, 2013, Xoom's more than 997,000 active customers sent more than $5.1 billion to family and friends in 30 countries. The company is headquartered in San Francisco and can be found online at www.xoom.com.

Forward-Looking Statements

This press release and Xoom's scheduled conference call contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 relating to, among other things, expectations, plans, prospects and financial results for Xoom, including, but not limited to, its expectations regarding its expansion into new markets, market demand, future earnings, revenue and financial and operating metrics. These forward-looking statements are based upon the current expectations and beliefs of Xoom's management as of the date of this press release and conference call, and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. All forward-looking statements made in this press release and during the conference call are based on information available to Xoom as of the date thereof, and Xoom disclaims any obligation to update these forward-looking statements.

In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: the evolving nature of the industry in which Xoom operates; its failure to attract new customers or retain existing customers; economic, political or regulatory factors beyond its control, in the U.S. or in countries to which its customers transfer money; fluctuations in foreign exchange rates; competitive pricing and marketing strategies by competitors; the adoption of competing technologies that supplant its services; the use of its services for illegal or improper purposes; the failure of partners to disburse funds according to Xoom's instructions; its ability to contract for third-party services on commercially reasonable terms; the maintenance of its payment network on terms consistent with those currently in place or newly adopted regulations in the U.S or in countries to which its customers transfer money; increases in transaction processing fees; declines in customer confidence in its business or in money transfer providers generally; its ability to protect its intellectual property; the adoption of smartphones and mobile devices to access information on the Internet and use of its services; potential breaches of its security systems; and other risks and uncertainties.

For a detailed discussion of these and other cautionary statements, please refer to the risk factors discussed in filings with the U.S. Securities and Exchange Commission ("SEC"), including but not limited to Xoom's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2013, Xoom's Registration Statement on Form S-1 declared effective on September 10, 2013, and any subsequently filed reports on Forms 10-Q and 8-K. All documents are available through the SEC's Electronic Data Gathering Analysis and Retrieval system ("EDGAR") at www.sec.gov or Xoom's website at www.xoom.com.

Non-GAAP Financial Measures

Xoom's stated results include certain non-GAAP financial measures, including Adjusted EBITDA, non-GAAP net income and non-GAAP earnings/(loss) per share. Adjusted EBITDA excludes (benefit) provision for income taxes, interest expense, interest income, depreciation and amortization, and expenses related to stock-based compensation expense. Non-GAAP net income excludes expenses related to stock-based compensation expense. Adjusted EBITDA and Non-GAAP net income exclude these expenses as they are often excluded by other companies to help investors understand the operational performance of their business, and in the case of stock-based compensation, can be difficult to predict. Xoom believes these adjustments provide useful comparative information to investors.

Xoom considers these non-GAAP financial measures to be important because they provide useful measures of its operating performance and are used by its management for that purpose. In addition, investors often use measures such as these to evaluate the operating performance of a company. Non-GAAP results are presented for supplemental informational purposes only for understanding Xoom's operating results. The non-GAAP results should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles, and may be different from non-GAAP measures used by other companies.

(Xoom-f)