MORRISVILLE, N.C., Feb. 04, 2016 (GLOBE NEWSWIRE) -- SciQuest, Inc. (Nasdaq:SQI), the leading public provider of spend management solutions delivering value beyond savings, today announced its financial results for the fourth quarter and full year ended December 31, 2015.
“Q4 financial results were above the high end of our guidance ranges, and we delivered another solid sales quarter. For the second quarter in a row, the average selling price to new customers was high. In addition, cross-selling to existing customers was strong,” said Stephen Wiehe, Chief Executive Officer of SciQuest. “During 2015 we advanced all of our strategic priorities and set the stage for improving topline growth and profitability. We re-wrote four solutions onto our primary platform, which helped us attract a record 58 new logos during the year. The significant investments we are making in the business helped us generate strong results in the second half of 2015. Our recent performance gives us great confidence that we can gradually grow revenue while further enhancing our already healthy adjusted EBITDA margins and free cash flow in 2016 and beyond.”
| Fourth Quarter 2015 Results | ||||||||
| in millions, except for earnings per share and adjusted EBITDA margin | ||||||||
| Metric | Fourth Quarter 2015 | Fourth Quarter 2014 | ||||||
| GAAP | ||||||||
| Revenues | $ | 26.7 | $ | 25.6 | ||||
| Income from operations | $ | 1.3 | $ | 0.2 | ||||
| Net income | $ | 1.5 | $ | 0.4 | ||||
| Diluted net income per share | $ | 0.05 | $ | 0.01 | ||||
| Weighted average diluted shares outstanding | 27.9 | 27.8 | ||||||
| Non-GAAP | ||||||||
| Revenues(1) | see above | $ | 25.6 | |||||
| Income from operations(2) | $ | 3.9 | $ | 3.1 | ||||
| Adjusted EBITDA(3) | $ | 5.8 | $ | 4.7 | ||||
| Adjusted EBITDA margin(3) | 21.7 | % | 18.2 | % | ||||
| Net income(4) | $ | 2.5 | $ | 1.9 | ||||
| Diluted net income per share(4) | $ | 0.09 | $ | 0.07 | ||||
| Weighted average diluted shares outstanding | 27.9 | 27.8 | ||||||
| Full Year 2015 Results | ||||||||
| in millions, except for earnings per share and adjusted EBITDA margin | ||||||||
| Metric | Full Year 2015 | Full Year 2014 | ||||||
| GAAP | ||||||||
| Revenues | $ | 105.4 | $ | 101.9 | ||||
| Income (loss) from operations | $ | 2.5 | ($ | 0.7 | ) | |||
| Net income (loss) | $ | 1.9 | ($ | 0.1 | ) | |||
| Diluted (basic) net income (loss) per share | $ | 0.07 | ($ | 0.00 | ) | |||
| Weighted average diluted / basic shares outstanding | 27.9 | 26.6 | ||||||
| Non-GAAP | ||||||||
| Revenues(1) | $ | 105.4 | $ | 103.3 | ||||
| Income from operations(2) | $ | 13.1 | $ | 12.9 | ||||
| Adjusted EBITDA(3) | $ | 20.2 | $ | 18.5 | ||||
| Adjusted EBITDA margin(3) | 19.1 | % | 18.0 | % | ||||
| Net income(4) | $ | 8.2 | $ | 8.0 | ||||
| Diluted net income per share(4) | $ | 0.29 | $ | 0.30 | ||||
| Weighted average diluted shares outstanding | 27.9 | 27.0 | ||||||
| Free cash flow / adjusted free cash flow(5) | $ | 9.3 | $ | 10.6 | ||||
| Business Outlook | ||||||||
| SciQuest is issuing guidance for first quarter and full year 2016 as follows: | ||||||||
| in millions, except for earnings per share and adjusted EBITDA margin | ||||||||
| Metric | Low | High | ||||||
| FIRST QUARTER 2016 | ||||||||
| GAAP | ||||||||
| Revenues | $ | 26.7 | $ | 26.9 | ||||
| Diluted net income per share | $ | 0.03 | $ | 0.04 | ||||
| Weighted average diluted shares outstanding | Approximately 28.0 | |||||||
| Non-GAAP | ||||||||
| Diluted net income per share(4) | $ | 0.07 | $ | 0.08 | ||||
| FULL YEAR 2016 | ||||||||
| GAAP | ||||||||
| Revenues | $ | 109 | $ | 111 | ||||
| Diluted net income per share | $ | 0.11 | $ | 0.13 | ||||
| Weighted average diluted shares outstanding | Approximately 28.2 | |||||||
| Net cash provided by operating activities | $ | 20 | $ | 22 | ||||
| Capitalization of software development costs | Approximately $6 | |||||||
| Purchase of property and equipment | Approximately $3 | |||||||
| Non-GAAP | ||||||||
| Adjusted EBITDA margin(3) | Approximately 21.5% | |||||||
| Diluted net income per share(4) | $ | 0.32 | $ | 0.34 | ||||
| Free cash flow(5) | $ | 11 | $ | 13 | ||||
| Reconciliations of the most comparable GAAP financial measure to the non-GAAP measures used in the tables above are included with the financial tables at the end of this release. | ||||||||
ENDNOTES
1) Non-GAAP revenues exclude the purchase accounting deferred revenue adjustment.
2) Non-GAAP income from operations excludes the purchase accounting deferred revenue adjustment; stock-based compensation; the amortization of (i) intangible assets and (ii) acquired software; and, when applicable: (i) acquisition related costs and (ii) headquarter relocation costs.
3) Adjusted EBITDA deducts from net income the purchase accounting deferred revenue adjustment; stock-based compensation; depreciation and amortization; income tax; total other expenses, net; and, when applicable: (i) acquisition related costs and (ii) headquarter relocation costs. Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by non-GAAP revenue or GAAP revenue if there is no purchase accounting deferred revenue adjustment in the period.
4) Non-GAAP net income and non-GAAP diluted net income per share exclude the purchase accounting deferred revenue adjustment; stock-based compensation; the amortization of (i) intangible assets and (ii) acquired software; and, when applicable: (i) acquisition related costs and (ii) headquarter relocation costs. Non-GAAP net income includes the burden of the tax effect related to these excluded items.
5) Free cash flow is defined as net cash provided by operating activities less (i) the purchase of property and equipment and (ii) capitalization of software development costs. Adjusted free cash flow adds acquisition-related costs, when applicable, and subtracts tenant improvement credits net of lease exit costs, when applicable, to free cash flow.
Conference Call Information
| What: | SciQuest’s fourth quarter and full year results conference call |
| When: | Thursday February 4, 2016 |
| Time: | 4:30 p.m. ET |
| Webcast: | http://investor.sciquest.com (live and replay) |
| Live Call: | (877) 407-8289, domestic |
| (201) 689-8341, international | |
| Replay: | (877) 660-6853, domestic |
| (201) 612-7415, international | |
| Live and replay conference ID code: | 1362-8170 |
Non-GAAP Financial Measures
SciQuest provides all information required in accordance with GAAP, but believes evaluating its ongoing operating results may not be as useful if an investor is limited to reviewing only GAAP financial measures. Accordingly, SciQuest presents non-GAAP financial measures when reporting its financial results to provide investors with additional tools to evaluate SciQuest’s operating results in a manner that focuses on what SciQuest believes to be its ongoing business operations and what SciQuest uses to evaluate its ongoing operations and for internal planning and forecasting purposes. SciQuest’s management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. SciQuest’s management believes it is useful for itself and investors to review, as applicable, both GAAP information that includes: (i) depreciation and amortization; (ii) stock-based compensation; (iii) purchase accounting deferred revenue adjustment; (iv) other significant items, when applicable; and (v) the beneficial income tax effect related to these included items; and the non-GAAP measures that exclude such information in order to assess the performance of SciQuest’s business and for planning and forecasting in subsequent periods. Whenever SciQuest uses such a non-GAAP financial measure, it provides a reconciliation of the non-GAAP financial measure to the most closely applicable GAAP financial measure to the extent possible. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed herein.
About SciQuest
SciQuest (Nasdaq:SQI) is the leading public provider of spend management solutions delivering value beyond savings. Through the continued release of key innovative technology and a fanatical drive toward making our customers successful, we deliver exceptional value in user experience, productivity and operational efficiency. Our cloud-based, mobile-enabled, source-to-settle platform addresses all stages of procurement from the automation of core processes to enabling sophisticated, strategic and multifaceted sourcing solutions. We specialize in handling simple procurement needs to the most advanced supplier and supply chain requirements. SciQuest serves a wide range of industries and organizations including many of the Global Fortune 500. For more information visit http://www.sciquest.com
To join the conversation, please visit our blog at http://www.sciquest.com/blog or follow us on Twitter @SciQuest.
Cautionary Note Regarding Forward-Looking Statements
Forward-looking statements include information concerning SciQuest’s possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, potential market opportunities, the effects of competition and other factors that could impact future performance. In particular, forward-looking statements include references to future revenue and revenue growth rates, adjusted EBITDA margins, free cash flow and all statements in the “Business Outlook” section. Forward-looking statements consist of statements that are not historical facts and can be identified by terms such as, but not limited to, “accelerates,” “anticipates,” “believes,” “could,” “seeks,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “will,” “would” or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Certain of these risks are discussed in “Part I, Item 1A, Risk Factors” and elsewhere in SciQuest’s most recent Annual Report on Form 10-K and other reports, as filed with the United States Securities and Exchange Commission (“SEC”). In particular, we call your attention to the risk factors in our Annual Report on Form 10-K entitled “Our actual operating results may differ significantly from our guidance”, “If we are unable to attract new customers, or if our existing customers do not purchase additional products or services, the growth of our business and cash flows will be adversely affected”, “Our failure to sustain our historical renewal rates, pricing and terms of our customer contracts would adversely affect our operating results” and “We are subject to a lengthy sales cycle and delays or failures to complete sales may harm our business and result in slower growth.” The company’s SEC reports are available free of charge on the SEC's website at http://www.sec.gov or on the company’s website at www.sciquest.com. All forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Also, forward-looking statements represent management’s beliefs and assumptions only as of the date of this release. Except as required by law, SciQuest assumes no obligation to update these forward-looking statements publicly or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.
SQI-F
| SCIQUEST, INC. | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (in thousands except per share amounts) | ||||||||
| As of December 31, | As of December 31, | |||||||
| 2015 | 2014 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 67,893 | $ | 59,419 | ||||
| Short-term investments | 74,612 | 71,493 | ||||||
| Accounts receivable, net | 12,632 | 12,032 | ||||||
| Prepaid expenses and other current assets | 3,253 | 2,666 | ||||||
| Total current assets | 158,390 | 145,610 | ||||||
| Property and equipment, net | 15,200 | 13,595 | ||||||
| Goodwill | 61,500 | 63,779 | ||||||
| Intangible assets, net | 18,510 | 23,846 | ||||||
| Deferred commissions | 6,745 | 6,094 | ||||||
| Deferred tax asset, net of deferred tax liability | 11,296 | 12,057 | ||||||
| Other | 260 | 234 | ||||||
| Total assets | $ | 271,901 | $ | 265,215 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 183 | $ | 375 | ||||
| Accrued liabilities | 11,006 | 10,051 | ||||||
| Deferred revenues | 60,697 | 59,751 | ||||||
| Total current liabilities | 71,886 | 70,177 | ||||||
| Deferred revenues, less current portion | 9,479 | 11,350 | ||||||
| Deferred rent, less current portion | 1,949 | 2,027 | ||||||
| Stockholders’ equity: | ||||||||
| Common stock, $0.001 par value; 50,000 shares authorized; 27,851 and 27,574 shares issued and outstanding as of December 31, 2015 and December 31, 2014, respectively | 28 | 28 | ||||||
| Additional paid-in capital | 212,129 | 204,065 | ||||||
| Accumulated other comprehensive loss | (6,055 | ) | (3,055 | ) | ||||
| Accumulated deficit | (17,515 | ) | (19,377 | ) | ||||
| Total stockholders’ equity | 188,587 | 181,661 | ||||||
| Total liabilities and stockholders’ equity | $ | 271,901 | $ | 265,215 | ||||
| SCIQUEST, INC. | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||
| (in thousands except per share amounts) | ||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Revenues | $ | 26,655 | $ | 25,568 | $ | 105,353 | $ | 101,932 | ||||||||
| Cost of revenues (1)(2) | 8,128 | 8,097 | 33,567 | 31,497 | ||||||||||||
| Gross profit | 18,527 | 17,471 | 71,786 | 70,435 | ||||||||||||
| Operating expenses: (1) | ||||||||||||||||
| Research and development | 6,690 | 7,046 | 27,303 | 28,307 | ||||||||||||
| Sales and marketing | 6,887 | 6,208 | 26,928 | 25,617 | ||||||||||||
| General and administrative | 2,971 | 3,254 | 12,295 | 14,045 | ||||||||||||
| Amortization of intangible assets | 639 | 759 | 2,753 | 3,154 | ||||||||||||
| Total operating expenses | 17,187 | 17,267 | 69,279 | 71,123 | ||||||||||||
| Income (loss) from operations | 1,340 | 204 | 2,507 | (688 | ) | |||||||||||
| Other income (expense), net: | ||||||||||||||||
| Interest income | 134 | 115 | 605 | 297 | ||||||||||||
| Other income (expense), net | 102 | (99 | ) | (309 | ) | (147 | ) | |||||||||
| Total other income (expense), net | 236 | 16 | 296 | 150 | ||||||||||||
| Income (loss) before income taxes | 1,576 | 220 | 2,803 | (538 | ) | |||||||||||
| Income tax (expense) benefit | (59 | ) | 148 | (941 | ) | 469 | ||||||||||
| Net income (loss) | $ | 1,517 | $ | 368 | $ | 1,862 | $ | (69 | ) | |||||||
| Other comprehensive income (loss): | ||||||||||||||||
| Foreign currency translation adjustments | (669 | ) | (681 | ) | (3,000 | ) | (1,654 | ) | ||||||||
| Comprehensive income (loss) | $ | 848 | $ | (313 | ) | $ | (1,138 | ) | $ | (1,723 | ) | |||||
| Net income (loss) per share | ||||||||||||||||
| Basic | $ | 0.05 | $ | 0.01 | $ | 0.07 | $ | (0.00 | ) | |||||||
| Diluted | $ | 0.05 | $ | 0.01 | $ | 0.07 | $ | (0.00 | ) | |||||||
| Weighted average shares outstanding used in computing per share amounts | ||||||||||||||||
| Basic | 27,832 | 27,540 | 27,721 | 26,609 | ||||||||||||
| Diluted | 27,931 | 27,789 | 27,889 | 26,609 | ||||||||||||
| (1) Amounts include stock-based compensation expense, as follows: | ||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Cost of revenues | $ | 198 | $ | 179 | $ | 810 | $ | 712 | ||||||||
| Research and development | 120 | 132 | 560 | 714 | ||||||||||||
| Sales and marketing | 493 | 379 | 1,641 | 1,491 | ||||||||||||
| General and administrative | 632 | 827 | 2,777 | 3,272 | ||||||||||||
| $ | 1,443 | $ | 1,517 | $ | 5,788 | $ | 6,189 | |||||||||
| (2) Cost of revenues includes amortization of capitalized software development costs of: | ||||||||||||||||
| Amortization of capitalized software development costs: | $ | 1,175 | $ | 912 | $ | 4,284 | $ | 2,934 | ||||||||
| Amortization of acquired software: | 497 | 520 | 1,987 | 2,078 | ||||||||||||
| $ | 1,672 | $ | 1,432 | $ | 6,271 | $ | 5,012 | |||||||||
| SCIQUEST, INC. | |||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (in thousands) | |||||||
| Twelve Months Ended December 31, | |||||||
| 2015 | 2014 | ||||||
| (unaudited) | |||||||
| Cash flows from operating activities | |||||||
| Net income (loss) | $ | 1,862 | $ | (69 | ) | ||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 11,827 | 10,851 | |||||
| Loss on disposal of fixed assets | - | 430 | |||||
| Stock-based compensation expense | 5,788 | 6,189 | |||||
| Deferred taxes | 761 | (598 | ) | ||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (670 | ) | 883 | ||||
| Prepaid expense and other current assets | (620 | ) | 560 | ||||
| Deferred commissions and other assets | (697 | ) | 681 | ||||
| Accounts payable | (193 | ) | (364 | ) | |||
| Accrued liabilities | 989 | (3,720 | ) | ||||
| Deferred revenues | (716 | ) | 532 | ||||
| Deferred rent | (78 | ) | 2,027 | ||||
| Net cash provided by operating activities | 18,253 | 17,402 | |||||
| Cash flows from investing activities | |||||||
| Addition of capitalized software development costs | (6,180 | ) | (5,550 | ) | |||
| Purchase of property and equipment | (2,765 | ) | (4,196 | ) | |||
| Purchase of short-term investments | (163,449 | ) | (122,728 | ) | |||
| Maturities of short-term investments | 160,330 | 66,340 | |||||
| Net cash used in investing activities | (12,064 | ) | (66,134 | ) | |||
| Cash flows from financing activities | |||||||
| Proceeds from public offering, net of underwriting discount | - | 87,673 | |||||
| Public offering costs | - | (240 | ) | ||||
| Proceeds from exercise of common stock options | 1,531 | 731 | |||||
| Proceeds from employee stock purchase plan activity | 812 | 922 | |||||
| Net cash provided by financing activities | 2,343 | 89,086 | |||||
| Effect of exchange rate change on cash and cash equivalents | (58 | ) | (52 | ) | |||
| Net increase in cash and cash equivalents | 8,474 | 40,302 | |||||
| Cash and cash equivalents at beginning of the period | 59,419 | 19,117 | |||||
| Cash and cash equivalents at end of the period | $ | 67,893 | $ | 59,419 | |||
| RECONCILIATION DATA | ||||||||||||||
| (UNAUDITED) | ||||||||||||||
| (in thousands except per share amounts) | ||||||||||||||
| Reconciliation of Net Income (Loss) to Non-GAAP Net Income: | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||
| Net income (loss) | $ | 1,517 | $ | 368 | $ | 1,862 | $ | (69 | ) | |||||
| Purchase accounting deferred revenue adjustment | - | 54 | 46 | 1,365 | ||||||||||
| Amortization of intangible assets | 639 | 759 | 2,753 | 3,154 | ||||||||||
| Amortization of acquired software | 497 | 520 | 1,987 | 2,078 | ||||||||||
| Stock-based compensation | 1,443 | 1,517 | 5,788 | 6,189 | ||||||||||
| Headquarter relocation costs | - | - | - | 830 | ||||||||||
| Tax effect of adjustments | (1,559 | ) | (1,343 | ) | (4,267 | ) | (5,560 | ) | ||||||
| Non-GAAP net income | $ | 2,537 | $ | 1,875 | $ | 8,169 | $ | 7,987 | ||||||
| Non-GAAP net income per share: | ||||||||||||||
| Basic | $ | 0.09 | $ | 0.07 | $ | 0.29 | $ | 0.30 | ||||||
| Diluted | $ | 0.09 | $ | 0.07 | $ | 0.29 | $ | 0.30 | ||||||
| Weighted average shares outstanding used in computing per share amounts: | ||||||||||||||
| Basic | 27,832 | 27,540 | 27,721 | 26,609 | ||||||||||
| Diluted | 27,931 | 27,789 | 27,889 | 26,995 | ||||||||||
| Reconciliation of Income (Loss) from Operations to Non-GAAP Income from Operations: | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||
| Income (loss) from operations | $ | 1,340 | $ | 204 | $ | 2,507 | $ | (688 | ) | |||||
| Purchase accounting deferred revenue adjustment | - | 54 | 46 | 1,365 | ||||||||||
| Amortization of intangible assets | 639 | 759 | 2,753 | 3,154 | ||||||||||
| Amortization of acquired software | 497 | 520 | 1,987 | 2,078 | ||||||||||
| Stock-based compensation | 1,443 | 1,517 | 5,788 | 6,189 | ||||||||||
| Headquarter relocation costs | - | - | - | 830 | ||||||||||
| Non-GAAP income from operations | $ | 3,919 | $ | 3,054 | $ | 13,081 | $ | 12,928 | ||||||
| Reconciliation of Net Income (Loss) to Adjusted EBITDA: | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||
| Net income (loss) | $ | 1,517 | $ | 368 | $ | 1,862 | $ | (69 | ) | |||||
| Income tax expense (benefit) | 59 | (148 | ) | 941 | (469 | ) | ||||||||
| Total other (income) expense, net | (236 | ) | (16 | ) | (296 | ) | (150 | ) | ||||||
| Purchase accounting deferred revenue adjustment | - | 54 | 46 | 1,365 | ||||||||||
| Depreciation and amortization | 3,007 | 2,897 | 11,827 | 10,851 | ||||||||||
| Stock-based compensation | 1,443 | 1,517 | 5,788 | 6,189 | ||||||||||
| Headquarter relocation costs | - | - | - | 830 | ||||||||||
| Adjusted EBITDA | $ | 5,790 | $ | 4,672 | $ | 20,168 | $ | 18,547 | ||||||
| Calculation of Adjusted EBITDA Margin: | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||
| Adjusted EBITDA | $ | 5,790 | $ | 4,672 | $ | 20,168 | $ | 18,547 | ||||||
| ÷ Non-GAAP revenues | 26,655 | 25,622 | 105,399 | 103,297 | ||||||||||
| Adjusted EBITDA margin | 21.7 | % | 18.2 | % | 19.1 | % | 18.0 | % | ||||||
| Reconciliation of Operating Expenses to Non-GAAP Operating Expenses: | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||
| Operating expenses | $ | 17,187 | $ | 17,267 | $ | 69,279 | $ | 71,123 | ||||||
| Amortization of intangible assets | (639 | ) | (759 | ) | (2,753 | ) | (3,154 | ) | ||||||
| Stock-based compensation | (1,245 | ) | (1,338 | ) | (4,978 | ) | (5,477 | ) | ||||||
| Headquarter relocation costs | - | - | - | (830 | ) | |||||||||
| Non-GAAP operating expenses | $ | 15,303 | $ | 15,170 | $ | 61,548 | $ | 61,662 | ||||||
| Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow / Adjusted Free Cash Flow: | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||
| Net cash provided by operating activities | $ | 9,087 | $ | 8,494 | $ | 18,253 | $ | 17,402 | ||||||
| Purchase of property and equipment | (1,183 | ) | (892 | ) | (2,765 | ) | (4,196 | ) | ||||||
| Capitalization of software development costs | (1,436 | ) | (1,319 | ) | (6,180 | ) | (5,550 | ) | ||||||
| Free cash flow | 6,468 | 6,283 | 9,308 | 7,656 | ||||||||||
| Acquisition related costs | - | - | - | 3,600 | ||||||||||
| Tenant improvement credits net of lease exit costs | - | (41 | ) | - | (609 | ) | ||||||||
| Free cash flow / adjusted free cash flow | $ | 6,468 | $ | 6,242 | $ | 9,308 | $ | 10,647 | ||||||
| RECONCILIATION DATA | ||||||||||||||
| (UNAUDITED) | ||||||||||||||
| (in thousands) | ||||||||||||||
| Reconciliation of Revenues to Non-GAAP Revenues: | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||
| Revenues | $ | 26,655 | $ | 25,568 | $ | 105,353 | $ | 101,932 | ||||||
| Purchase accounting deferred revenue adjustment | - | 54 | 46 | 1,365 | ||||||||||
| Non-GAAP revenues | $ | 26,655 | $ | 25,622 | $ | 105,399 | $ | 103,297 | ||||||
| Reconciliation of Cost of Revenues to Non-GAAP Cost of Revenues: | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||
| Cost of revenues | $ | 8,128 | $ | 8,097 | $ | 33,567 | $ | 31,497 | ||||||
| Amortization of acquired software | (497 | ) | (520 | ) | (1,987 | ) | (2,078 | ) | ||||||
| Stock-based compensation | (198 | ) | (179 | ) | (810 | ) | (712 | ) | ||||||
| Non-GAAP cost of revenues | $ | 7,433 | $ | 7,398 | $ | 30,770 | $ | 28,707 | ||||||
| Reconciliation of Research and Development to Non-GAAP Research and Development: | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||
| Research and development | $ | 6,690 | $ | 7,046 | $ | 27,303 | $ | 28,307 | ||||||
| Stock-based compensation | (120 | ) | (132 | ) | (560 | ) | (714 | ) | ||||||
| Non-GAAP research and development | $ | 6,570 | $ | 6,914 | $ | 26,743 | $ | 27,593 | ||||||
| Reconciliation of Sales and Marketing to Non-GAAP Sales and Marketing: | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||
| Sales and marketing | $ | 6,887 | $ | 6,208 | $ | 26,928 | $ | 25,617 | ||||||
| Stock-based compensation | (493 | ) | (379 | ) | (1,641 | ) | (1,491 | ) | ||||||
| Non-GAAP sales and marketing | $ | 6,394 | $ | 5,829 | $ | 25,287 | $ | 24,126 | ||||||
| Reconciliation of General and Administrative to Non-GAAP General and Administrative: | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||
| General and administrative | $ | 2,971 | $ | 3,254 | $ | 12,295 | $ | 14,045 | ||||||
| Stock-based compensation | (632 | ) | (827 | ) | (2,777 | ) | (3,272 | ) | ||||||
| Headquarter relocation costs | - | - | - | (830 | ) | |||||||||
| Non-GAAP general and administrative | $ | 2,339 | $ | 2,427 | $ | 9,518 | $ | 9,943 | ||||||
| Reconciliation of Amortization of Intangible Assets to Non-GAAP Amortization of Intangible Assets: | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||
| Amortization of intangible assets | $ | 639 | $ | 759 | $ | 2,753 | $ | 3,154 | ||||||
| Amortization of intangible assets | (639 | ) | (759 | ) | (2,753 | ) | (3,154 | ) | ||||||
| Non-GAAP amortization of intangible assets | $ | - | $ | - | $ | - | $ | - | ||||||
| RECONCILIATION DATA | |||||||||||||
| (UNAUDITED) | |||||||||||||
| (in thousands except per share amounts) | |||||||||||||
| Reconciliation of Net (Loss) Income per Share Outlook to Non-GAAP Income per Share Outlook: | Three Months Ended March 31, 2016 | Twelve Months Ended December 31, 2016 | |||||||||||
| Low end of Range | High end of Range | Low end of Range | High end of Range | ||||||||||
| Net income per share | $ | 0.03 | $ | 0.04 | $ | 0.11 | $ | 0.13 | |||||
| Amortization of intangible assets per share and acquired | 0.04 | 0.04 | 0.15 | 0.15 | |||||||||
| software per share | |||||||||||||
| Stock-based compensation per share | 0.04 | 0.04 | 0.20 | 0.20 | |||||||||
| Tax effect of adjustments per share | (0.04 | ) | (0.04 | ) | (0.14 | ) | (0.14 | ) | |||||
| Non-GAAP net income per share | $ | 0.07 | $ | 0.08 | $ | 0.32 | $ | 0.34 | |||||
| Reconciliation of Net Income to Adjusted EBITDA: | Twelve Months Ended December 31, 2016 | ||||||||||||
| Expected | |||||||||||||
| Net income | $ | 3,700 | |||||||||||
| Income tax expense | 2,300 | ||||||||||||
| Other income, net | 0 | ||||||||||||
| Depreciation and amortization | 12,300 | ||||||||||||
| Stock-based compensation | 5,600 | ||||||||||||
| Adjusted EBITDA | $ | 23,900 | |||||||||||
| Calculation of Adjusted EBITDA Margin: | Twelve Months Ended December 31, 2016 | ||||||||||||
| Expected | |||||||||||||
| Adjusted EBITDA | $ | 23,900 | |||||||||||
| ÷ Non-GAAP Revenues (High End of Range) | 111,000 | ||||||||||||
| Adjusted EBITDA margin | 21.5 | % | |||||||||||
| Reconciliation of Net Cash Provided by Operating Activities Outlook to Adjusted Free Cash Flow Outlook: | Twelve Months Ended December 31, 2016 | ||||||||||||
| Low end of Range | High end of Range | ||||||||||||
| Net cash provided by operating activities | $ | 20,000 | $ | 22,000 | |||||||||
| Capitalization of software development costs | (6,000 | ) | (6,000 | ) | |||||||||
| Purchase of property and equipment | (3,000 | ) | (3,000 | ) | |||||||||
| Adjusted free cash flow | $ | 11,000 | $ | 13,000 | |||||||||
SciQuest Media contact:
SciQuest, Inc.
Roberta Patterson, 919-659-2230
rpatterson@SciQuest.com
Edelman for SciQuest
Megan Smith, 404-832-6776
Megan.smith3@edelman.com
SciQuest Investor contact:
Jamie Andelman
SciQuest, Inc., 919-659-2322
jandelman@sciquest.com