HOBOKEN, N.J., May 28, 2015 (GLOBE NEWSWIRE) -- Liquid Holdings Group, Inc. (Nasdaq:LIQD), a provider of cloud-based investment management solutions for the financial community, today provided operating metrics as of December 31, 2014 and March 31, 2015.
"We are very encouraged by our continued traction with increasingly larger and more complex funds," said CEO of Liquid Holdings, Peter Kent. "In the first quarter of 2015, we on-boarded four customers from our backlog and signed two new customers, which will contribute to revenue in future quarters. In the fourth quarter of last year, we signed our largest customer to date, a registered investment advisor with approximately $2.5 billion under management. Additionally, one of our largest clients, an asset manager with approximately $800 million under management, went live on the Liquid platform and contributed to GAAP revenue in the fourth quarter of 2014."
In addition to the U.S. GAAP metrics that we regularly monitor, we also monitor the following operating metrics to evaluate our business, measure our performance, identify trends affecting our business and make strategic decisions:
| As of | As of | |
| 3/31/2015 | 12/31/2014 | |
| Contracts – Contributing to Revenue | ||
| Number of Customers | 11 | 7 |
| Number of Units (1) | 46 | 18 |
| Contracts – Expected to Contribute to Future Revenue (2) | ||
| Number of Customers | 10 | 12 |
| Number of Units (1) | 53 | 62 |
| Contracts – Total | ||
| Number of Customers | 21 | 19 |
| Number of Units (1) | 99 | 80 |
| Annual Contract Value ("ACV") (in millions) (3) | $0.560 | $0.578 |
| Average ACV per Customer (4) | $33,052 | $32,692 |
It is the Company's understanding that its prior client QuantX ceased operations as of December 31, 2014. As a result, Liquid suspended all services to QuantX and QuantX-related managers as of January 8, 2015. Adjusting for the impact of QuantX's cessation of operations, Liquid had five customers contributing to GAAP revenue as of September 30, 2014. This compares to two customers as of both June 30, 2014 and March 30, 2014.
(1) Number of Units - Since our customers generally pay fees based on the number of units of our platform being used within their organizations, we believe the total number of units is an indicator of the growth of the business. Each unit represents an individual element of the Liquid platform such as LiquidTradeSM, LiquidMetrics® or LiquidView®.
(2) Contracts – Expected to Contribute to Future Revenue – Represents contracts that have been signed but are not yet generating revenue because our product has not yet been deployed to the customer. Most of our revenues are generated from subscription contracts, which are paid monthly and typically have a minimum term of one year, with revenues recognized ratably over the term of the subscription contract.
(3) Annual Contract Value ("ACV") - ACV is an operating measure that represents, as of the end of any quarter for which ACV is reported, the estimated contract value of subscription payments payable to us during the next twelve months (or, in the case of subscription contracts where the remaining contract term is less than twelve months, the remaining value of such contracts) pursuant to subscription contracts existing at the end of the quarter for which ACV is reported, including contracts pursuant to which we are currently generating no revenue because our product has not yet been deployed to the customer. ACV is not a measure calculated and presented in accordance with U.S. GAAP and should not be considered as an alternative to revenue or any other financial measures so calculated. Management uses this information as a basis for planning and forecasting core business activity for future periods and believes it is a helpful indicator of potential future revenue. However, our presentation of this measure may not be comparable to similar measures as disclosed by other issuers, because other companies may calculate these measures differently. Additionally, our actual revenue may be lower or higher than ACV.
(4) Average Annual Contract Value per Customer ("AAC") - AAC is an operating measure that represents the average contract value per customer for the twelve months beginning upon the deployment of software to a customer.
About Liquid Holdings Group
Liquid Holdings Group, Inc. (Nasdaq:LIQD) is a cloud-based technology and services provider to the global hedge fund and active trading markets. The Liquid platform combines multi-asset order, execution and risk management with shadow NAV and investor reporting capabilities. Liquid goes a step further, backing its mission-critical front-office capabilities with managed services to transform manually intensive middle-office processes into an automated, seamless experience. The Company offers the Liquid platform or any of its components on a subscription basis to hedge fund managers, asset managers, family offices and financial institutions worldwide.
Liquid was recently named Best EMS and Best New Cloud Application by HFM, 2014 Best Global Risk Management Software Company and Best USA Global Risk Management Software Company by the readers of Hedgeweek, as well as 2014 Best Cloud Provider and Best Fin Tech Operations Startup by FTF News.
Headquartered in Hoboken, New Jersey, Liquid Holdings Group was formed in 2012. For more information, please visit www.liquidholdings.com.
Cautionary Statement Concerning Forward Looking Statements
This release contains forward-looking statements within the meaning of the federal securities laws. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. These statements include, among others, statements relating to the Company's Annual Contract Value and Average Annual Contract Value per Customer. These statements are based on Liquid's beliefs and assumptions, which in turn are based on currently available information. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. Many of these factors are beyond the Company's ability to control or predict and you should be aware that the occurrence of certain events, including those referenced in the sections titled "Risk Factors" in our 2013 Form 10-K or our subsequent Quarterly Reports on Form 10-Q, could harm the Company's business, prospects, results of operations, liquidity and financial condition and cause its stock price to decline significantly. Except as required by applicable law, the Company is under no obligation to publicly update or revise any forward-looking statements.