BroadSoft Reports Fourth Quarter and Full Year 2015 Financial Results
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GAITHERSBURG, MD -- (Marketwired) -- 02/29/16 -- BroadSoft, Inc. (NASDAQ: BSFT), the leading global provider of Internet protocol-based, or IP-based, communications services to the telecommunications industry, today announced financial results for the fourth quarter and twelve-month period ended December 31, 2015.
Financial Highlights for the Fourth Quarter of 2015
- Total revenue increased 36% year-over-year to $89.6 million
- GAAP gross profit equaled 78% of total revenue; non-GAAP gross profit equaled 82% of total revenue
- GAAP income from operations totaled $20.6 million or 23% of revenue; non-GAAP income from operations totaled $32.1 million or 36% of revenue
- GAAP diluted earnings per share equaled $0.39 per common share; non-GAAP diluted earnings per share equaled $1.04 per common share
Results for the three months ended December 31, 2015
Total revenue rose to $89.6 million in the fourth quarter of 2015, an increase of 36% compared to $65.8 million in the fourth quarter of 2014.
Net income for the fourth quarter of 2015 was $11.6 million, or $0.39 per diluted common share, compared to net income of $7.7 million, or $0.26 per diluted common share in the fourth quarter of 2014.
On a non-GAAP basis, net income in the fourth quarter of 2015 was $30.7 million, or $1.04 per diluted common share, compared to non-GAAP net income of $19.1 million, or $0.65 per diluted common share, in the fourth quarter of 2014. A reconciliation of non-GAAP and GAAP results is included in the financial tables below.
Results for the twelve months ended December 31, 2015
For the full year, total revenue was $278.8 million, an increase of 29% compared to $216.9 million in 2014.
Net income for the full year of 2015 was $0.2 million, or $0.01 per diluted common share, compared to net income of $0.3 million, or $0.01 per diluted common share, in 2014.
On a non-GAAP basis, net income for the full year of 2015 was $58.6 million or $1.96 per diluted common share, compared to non-GAAP net income of $40.1 million, or $1.37 per diluted common share, in 2014. A reconciliation of non-GAAP and GAAP results is included in the financial tables below.
Management Commentary "We closed out an outstanding 2015 for BroadSoft with a strong fourth quarter," said Michael Tessler, president and chief executive officer, BroadSoft. "In addition to delivering robust financial results, we delivered on our strategic goals. We introduced our vision of the "future of work" and next-generation business communications with Project Tempo. We expanded BroadCloud internationally, including into Japan, and achieved important milestones on several of the large network transformation deals we previously won. I look forward to continuing this momentum in 2016."
"I am delighted with our fourth quarter financial results as we generated strong revenue, non-GAAP earnings and cash flow. I would note that while we had forecast strength in fourth quarter professional services revenue, our actual results exceeded these expectations," said Jim Tholen, chief financial officer, BroadSoft. "We achieved revenue recognition milestones related to a single large network transformation project earlier than anticipated which added an incremental $7 million of services revenue."
Guidance
For the first quarter of 2016, BroadSoft anticipates revenue of $70 to $74 million. The Company also expects to achieve earnings on a non-GAAP basis of $0.20 to $0.32 per diluted common share. For the full year 2016, BroadSoft expects revenue of $332 to $340 million. The Company anticipates full year 2016 earnings on a non-GAAP basis of $1.90 to $2.10 per diluted common share which incorporates approximately $0.05 per share of dilution in aggregate from the Company's recently announced acquisitions.
Conference Call
BroadSoft will discuss its fourth quarter and full year 2015 results and its business outlook today via teleconference at 8:30 a.m. Eastern Time. To participate in the teleconference, callers can dial the toll free number 1-877-312-5517 (U.S. callers only) or 1-760-666-3772 (from outside the U.S.). The conference call can also be heard live via audio webcast at http://investors.broadsoft.com/events.cfm. To help ensure the conference begins on time, please dial in or connect via the web five minutes prior to the scheduled start time.
For those unable to participate in the live call, a recording will be available shortly after the conclusion of the call at http://investors.broadsoft.com/events.cfm and will remain available until immediately prior to our next earnings call.
BroadSoft has provided in this release, and will provide on this morning's teleconference, financial information that has not been prepared in accordance with generally accepted accounting principles, or GAAP. BroadSoft uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating BroadSoft's ongoing operational performance. BroadSoft's management regularly uses these non-GAAP financial measures to understand and manage its business and believes these non-GAAP financial measures provide meaningful supplemental information regarding the Company's performance by excluding certain non-cash expenses, and may include additional adjustments for items that are infrequent in nature. BroadSoft believes the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing its financial results with other companies in BroadSoft's industry, many of which present similar non-GAAP financial measures to investors. A reconciliation of the non-GAAP financial measures included in this release and to be discussed on this morning's teleconference to the most directly comparable GAAP financial measures is set forth below.
Non-GAAP financial measures:
Non-GAAP cost of revenue, license software cost of revenue, subscription and maintenance cost of revenue and professional services and other cost of revenue. We define non-GAAP cost of revenue as a cost of revenue less stock-based compensation expense and amortization expense for acquired intangible assets. We consider non-GAAP cost of revenue to be a useful metric for management and our investors because it excludes the effect of certain non-cash expenses so management and investors can compare our cost of revenue over multiple periods.
Non-GAAP gross profit, license software gross profit, subscription and maintenance support gross profit and professional services and other gross profit. We define non-GAAP gross profit as gross profit plus stock-based compensation expense and amortization expense for acquired intangible assets. We consider non-GAAP gross profit to be a useful metric for management and our investors because it excludes the effect of certain non-cash expenses so management and investors can compare our sales margins over multiple periods.
Non-GAAP income from operations. We define non-GAAP income from operations as income from operations plus stock-based compensation expense and amortization expense for acquired intangible assets. We consider non-GAAP income from operations to be a useful metric for management and investors because it excludes the effect of certain non-cash expenses so management and investors can compare our core business operating results over multiple periods.
Non-GAAP operating expenses, sales and marketing expense, research and development expense and general and administrative expense. We define non-GAAP operating expenses as operating expense less stock-based compensation expense allocated to sales and marketing, research and development and general and administrative expenses. Similarly, we define non-GAAP sales and marketing, research and development and general and administrative expenses as the relevant GAAP measure less stock-based compensation expense allocated to the particular expense item.
Non-GAAP net income and net income per share. We define non-GAAP net income as net income plus stock-based compensation expense, amortization expense for acquired intangible assets, non-cash interest expense on our convertible senior notes, foreign currency transaction gains and losses, loss on repurchase of our convertible senior notes and non-cash tax expense included in the GAAP tax provision. We define non-GAAP income per share as non-GAAP net income divided by the weighted average shares outstanding.
Billings. BroadSoft defines billings as revenue plus the net change in our deferred revenue balance for a particular period. BroadSoft believes that billings is a key measure of our business activity.
With respect to our expectations under "Guidance" above, and regarding certain of the projections discussed on this morning's teleconference, reconciliation of both non-GAAP earnings per share guidance, and of projections regarding non-GAAP cost of sales and non-GAAP operating expenses in the first quarter and full year of 2016, to the closest corresponding GAAP measures are not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures, in particular, the measures and effects of non-cash income taxes, which are extremely difficult to project as a result of our tax status in a number of foreign jurisdictions, and stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our stock price. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.
The presentation of non-GAAP net income, non-GAAP net income per share, non-GAAP gross margin, non-GAAP income from operations, billings and other non-GAAP financial measures in this release and on this morning's teleconference is not meant to be a substitute for "net income," "net income per share," "gross margin," "income from operations" or other financial measures presented in accordance with GAAP, but rather should be evaluated in conjunction with such data. BroadSoft's definition of "non-GAAP net income," "non-GAAP net income per share," "non-GAAP gross margin," "non-GAAP income from operations," "billings" and other non-GAAP financial measures may differ from similarly titled non-GAAP measures used by other companies and may differ from period to period. In reporting non-GAAP measures in the future, management may make other adjustments for expenses and gains it does not consider reflective of core operating performance in a particular period and may modify "non-GAAP net income," "non-GAAP net income per share," "non-GAAP gross margin," "non-GAAP income from operations," "billings" and such other non-GAAP measures by excluding these expenses and gains.
Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by their use of terms and phrases such as "anticipate," "enable," "expect," "will," "believe," "continue" and other similar terms and phrases, and such forward-looking statements include, but are not limited to, the statements regarding the Company's future financial performance set forth under the heading "Guidance." The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated by these forward-looking statements, including, but not limited to: the Company's dependence on the success of BroadWorks � and on its service provider customers to sell services using its applications; the Company's dependence in large part on service providers' continued deployment of, and investment in, their IP-based networks; claims that the Company infringes the intellectual property rights of others; the Company's ability to integrate and achieve the expected benefits from its recent acquisitions; and the Company's ability to expand its product offerings, as well as those factors contained in the "Risk Factors" sections of the Company's Form 10-K for the year ended December 31, 2015 to be filed with the SEC on February 29, 2016, and in the Company's other filings with the SEC. All information in this release is as of February 29, 2016. Except as required by law, the Company undertakes no obligation to update publicly any forward-looking statement made herein for any reason to conform the statement to actual results or changes in the Company's expectations.
About BroadSoft
BroadSoft is the leading provider of software and services that enable mobile, fixed-line and cable service providers to offer Unified Communications over their Internet Protocol networks. The Company's core communications platform enables the delivery of a range of enterprise and consumer calling, messaging and collaboration communication services, including private branch exchanges, video calling, text messaging and converged mobile and fixed-line services.
Financial Statements As described in more detail in the Form 10-K, during the fourth quarter of 2015, the Company changed its policy with respect to the recognition of stock-based compensation expense related to service-only equity awards. The Company has retrospectively applied that policy change in the financial statements and the reconciliation of non-GAAP financial measures set forth below.
The financial statements set forth below are not the complete set of the Company's financial statements for the quarter and the year and are presented below without footnotes. Readers are encouraged to obtain and carefully review BroadSoft's Annual Report on Form 10-K for the year ended December 31, 2015, including all financial statements contained therein and the footnotes thereto, to be filed with the SEC on February 29, 2016. Once filed with the SEC, the Form 10-K may be retrieved from the SEC's website at www.sec.gov or from BroadSoft's website at www.broadsoft.com.
BSFT-F
BroadSoft, Inc.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
December 31, December 31,
2015 2014
------------- --------------
(Unaudited)
Assets:
Current assets:
Cash and cash equivalents $ 175,857 $ 101,543
Short-term investments 72,531 68,923
Accounts receivable, net of allowance for
doubtful accounts of $85 and $286 at
December 31, 2015 and December 31, 2014,
respectively 108,113 81,794
Other current assets 13,155 12,272
------------- --------------
Total current assets 369,656 264,532
------------- --------------
Long-term assets:
Property and equipment, net 19,481 14,363
Long-term investments 102,385 52,030
Intangible assets, net 18,835 15,568
Goodwill 72,275 65,303
Deferred tax assets 1,661 17,074
Other long-term assets 8,081 7,281
------------- --------------
Total long-term assets 222,718 171,619
------------- --------------
Total assets $ 592,374 $ 436,151
============= ==============
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable and accrued expenses $ 28,667 $ 20,787
Deferred revenue, current portion 106,483 87,423
------------- --------------
Total current liabilities 135,150 108,210
------------- --------------
Convertible senior notes 188,331 95,628
Deferred revenue 4,571 14,033
Other long-term liabilities 7,289 5,319
------------- --------------
Total liabilities 335,341 223,190
------------- --------------
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par value per share;
5,000,000 shares authorized at December
31, 2015 and December 31, 2014; no shares
issued and outstanding at December 31,
2015 and December 31, 2014 -- --
Common stock, par value $0.01 per share;
100,000,000 shares authorized at December
31, 2015 and December 31, 2014; 29,080,197
and 28,943,336 shares issued and
outstanding at December 31, 2015 and
December 31, 2014, respectively 291 290
Additional paid-in capital 333,153 258,169
Accumulated other comprehensive loss (13,810) (7,712)
Accumulated deficit (62,601) (37,786)
------------- --------------
Total stockholders' equity 257,033 212,961
------------- --------------
Total liabilities and stockholders' equity $ 592,374 $ 436,151
============= ==============
BroadSoft, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Year Ended December
December 31, 31,
------------------- ----------------------
2015 2014 2015 2014
(Unaudited) (Unaudited)
Revenue:
License software $ 35,438 $ 34,841 $ 119,808 $103,311
Subscription and maintenance
support 30,573 25,192 112,836 92,492
Professional services and other 23,580 5,793 46,199 21,054
--------- --------- ------------ --------
Total revenue 89,591 65,826 278,843 216,857
Cost of revenue:
License software 2,247 2,577 10,231 9,755
Subscription and maintenance
support 9,644 8,790 38,602 32,984
Professional services and other 7,976 3,424 28,925 14,955
--------- --------- ------------ --------
Total cost of revenue 19,867 14,791 77,758 57,694
--------- --------- ------------ --------
Gross profit 69,724 51,035 201,085 159,163
Operating expenses:
Sales and marketing 23,955 18,967 83,806 69,471
Research and development 15,225 12,941 60,749 50,125
General and administrative 9,920 7,867 41,287 32,993
--------- --------- ------------ --------
Total operating expenses 49,100 39,775 185,842 152,589
--------- --------- ------------ --------
Income from operations 20,624 11,260 15,243 6,574
Other expense:
Interest expense, net 3,341 1,797 9,386 7,177
Other, net 402 562 5,714 1,300
--------- --------- ------------ --------
Total other expense, net 3,743 2,359 15,100 8,477
--------- --------- ------------ --------
Income (loss) before income taxes 16,881 8,901 143 (1,903)
Provision for (benefit from)
income taxes 5,258 1,214 (36) (2,199)
--------- --------- ------------ --------
Net income $ 11,623 $ 7,687 $ 179 $ 296
========= ========= ============ ========
Net income per common share:
Basic $ 0.40 $ 0.27 $ 0.01 $ 0.01
Diluted $ 0.39 $ 0.26 $ 0.01 $ 0.01
Weighted average common shares
outstanding:
Basic 28,906 28,853 29,113 28,654
Diluted 29,462 29,272 29,818 29,365
Stock-based compensation expense
included above:
Cost of revenue $ 1,940 $ 1,127 $ 7,227 $ 3,862
Sales and marketing 3,773 2,407 13,821 9,856
Research and development 2,911 2,666 11,844 10,164
General and administrative 1,433 1,049 7,552 6,391
BroadSoft, Inc.
SUMMARY OF CONSOLIDATED CASH FLOW ACTIVITY
(in thousands)
Year ended December 31,
-------------------------------------
2015 2014 2013
----------- ----------- -----------
(Unaudited)
Cash provided by (used in):
Operating activities $ 44,786 $ 54,759 $ 31,934
Investing activities (88,011) (17,558) (57,406)
Financing activities 118,918 (4,135) 4,831
BroadSoft, Inc.
BILLINGS
(Unaudited)
Three Months Ended
December 31, Year ended December 31,
------------------- --------------------------
2015 2014 2015 2014 2013
--------- --------- -------- -------- --------
(in thousands) (in thousands)
Beginning of period deferred
revenue balance $ 109,678 $ 82,848 $101,456 $ 77,662 $ 61,149
End of period deferred
revenue balance 111,054 101,456 111,054 101,456 77,662
--------- --------- -------- -------- --------
Increase in deferred
revenue 1,376 18,608 9,598 23,794 16,513
Revenue 89,591 65,826 278,843 216,857 178,493
--------- --------- -------- -------- --------
Revenue plus net change in
deferred revenue 90,967 84,434 288,441 240,651 195,006
========= ========= ======== ======== ========
BroadSoft, Inc.
LICENSE SOFTWARE BILLINGS
(Unaudited)
Three Months Ended
December 31, Year ended December 31,
------------------- --------------------------
2015 2014 2015 2014 2013
--------- --------- -------- -------- --------
(in thousands) (in thousands)
Beginning of period deferred
license software revenue
balance $ 32,282 $ 24,179 $ 26,495 $ 20,149 $ 18,375
End of period deferred
license software revenue
balance 33,200 26,495 33,200 26,495 20,149
--------- --------- -------- -------- --------
Increase (decrease) in
deferred license software
revenue 918 2,316 6,705 6,346 1,774
License software revenue 35,438 34,841 119,808 103,311 94,408
--------- --------- -------- -------- --------
License software revenue
plus net change in
deferred license software
revenue $ 36,356 $ 37,157 $126,513 $109,657 $ 96,182
========= ========= ======== ======== ========
BroadSoft, Inc.
SUBSCRIPTION AND MAINTENANCE SUPPORT BILLINGS
(Unaudited)
Three Months Ended
December 31, Year ended December 31,
------------------- ------------------------
2015 2014 2015 2014 2013
--------- --------- -------- ------- -------
(in thousands) (in thousands)
Beginning of period deferred
subscription and maintenance
support revenue balance $ 49,598 $ 42,978 $ 52,764 $46,975 $35,701
End of period deferred
subscription and maintenance
support revenue balance 61,399 52,764 61,399 52,764 46,975
--------- --------- -------- ------- -------
Increase in deferred
subscription and maintenance
support revenue 11,801 9,786 8,635 5,789 11,274
Subscription and maintenance
support revenue 30,573 25,192 112,836 92,492 69,357
--------- --------- -------- ------- -------
Subscription and maintenance
support revenue plus net
change in deferred
subscription and maintenance
support revenue 42,374 34,978 121,471 98,281 80,631
========= ========= ======== ======= =======
BroadSoft, Inc.
PROFESSIONAL SERVICES AND OTHER BILLINGS
(Unaudited)
Three Months Ended
December 31, Year ended December 31,
------------------- -----------------------
2015 2014 2015 2014 2013
--------- --------- ------- ------- -------
(in thousands) (in thousands)
Beginning of period deferred
professional services and other
revenue balance $ 27,798 $ 15,691 $22,197 $10,538 $ 7,073
End of period deferred
professional services and other
revenue balance 16,455 22,197 16,455 22,197 10,538
--------- --------- ------- ------- -------
Increase (decrease) in
deferred professional
services and other revenue (11,343) 6,506 (5,742) 11,659 3,465
Professional services and other
revenue 23,580 5,793 46,199 21,054 14,728
--------- --------- ------- ------- -------
Professional services and
other revenue plus net change
in deferred professional
services and other revenue $ 12,237 $ 12,299 $40,457 $32,713 $18,193
========= ========= ======= ======= =======
BroadSoft, Inc.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited)
Three
Months
Ended
Three Months Ended September Year Ended
December 31, 30, December 31,
2015 2014 2015 2015 2014
-------- -------- --------- -------- --------
(in thousands)
Non-GAAP cost of
revenue:
GAAP license cost of
revenue $ 2,247 $ 2,577 $ 2,444 $ 10,231 $ 9,755
(percent of related
revenue) 6% 7% 8% 9% 9%
Less:
Stock-based
compensation expense 246 170 234 1,017 738
Amortization of
acquired intangible
assets 421 196 430 1,718 871
-------- -------- --------- -------- --------
Non-GAAP license cost of
revenue $ 1,580 $ 2,211 $ 1,780 $ 7,496 $ 8,146
======== ======== ========= ======== ========
(percent of related
revenue) 4% 6% 6% 6% 8%
GAAP subscription and
maintenance support
cost of revenue $ 9,644 $ 8,790 $ 9,784 $ 38,602 $ 32,984
(percent of related
revenue) 32% 35% 33% 34% 36%
Less:
Stock-based
compensation expense 677 750 607 3,006 2,287
Amortization of
acquired intangible
assets 855 1,040 1,010 3,977 4,520
-------- -------- --------- -------- --------
Non-GAAP subscription
and maintenance support
cost of revenue $ 8,112 $ 7,000 $ 8,167 $ 31,619 $ 26,177
======== ======== ========= ======== ========
(percent of related
revenue) 27% 28% 27% 28% 28%
GAAP professional
services and other cost
of revenue $ 7,976 $ 3,424 $ 9,418 $ 28,925 $ 14,955
(percent of related
revenue) 34% 59% 119% 63% 71%
Less:
Stock-based
compensation expense 1,017 207 1,060 3,204 837
Amortization of
acquired intangible
assets 175 -- 175 408 --
-------- -------- --------- -------- --------
Non-GAAP professional
services and other cost
of revenue $ 6,784 $ 3,217 $ 8,183 $ 25,313 $ 14,118
======== ======== ========= ======== ========
(percent of related
revenue) 29% 56% 103% 55% 67%
Three
Months
Ended
Three Months Ended September Year Ended
December 31, 30, December 31,
2015 2014 2015 2015 2014
-------- -------- --------- -------- --------
(in thousands)
Non-GAAP gross profit:
GAAP gross profit $ 69,724 $ 51,035 $ 47,451 $201,085 $159,163
(percent of total
revenue) 78% 78% 69% 72% 73%
Plus:
Stock-based
compensation expense 1,940 1,127 1,901 7,227 3,862
Amortization of
acquired intangible
assets 1,451 1,236 1,615 6,103 5,391
-------- -------- --------- -------- --------
Non-GAAP gross profit $ 73,115 $ 53,398 $ 50,967 $214,415 $168,416
======== ======== ========= ======== ========
(percent of total
revenue) 82% 81% 74% 77% 78%
GAAP license gross
profit $ 33,191 $ 32,264 $ 28,899 $109,577 $ 93,556
(percent of related
revenue) 94% 93% 92% 91% 91%
Plus:
Stock-based
compensation expense 246 170 234 1,017 738
Amortization of
acquired intangible
assets 421 196 430 1,718 871
-------- -------- --------- -------- --------
Non-GAAP license gross
profit $ 33,858 $ 32,630 $ 29,563 $112,312 $ 95,165
======== ======== ========= ======== ========
(percent of related
revenue) 96% 94% 94% 94% 92%
GAAP subscription and
maintenance support
gross profit $ 20,929 $ 16,402 $ 20,044 $ 74,234 $ 59,508
(percent of related
revenue) 68% 65% 67% 66% 64%
Plus:
Stock-based
compensation expense 677 750 607 3,006 2,287
Amortization of
acquired intangible
assets 855 1,040 1,010 3,977 4,520
-------- -------- --------- -------- --------
Non-GAAP subscription
and maintenance support
gross profit $ 22,461 $ 18,192 $ 21,661 $ 81,217 $ 66,315
======== ======== ========= ======== ========
(percent of related
revenue) 73% 72% 73% 72% 72%
GAAP professional
services and other
gross profit $ 15,604 $ 2,369 $ (1,492) $ 17,274 $ 6,099
(percent of related
revenue) 66% 41% (19)% 37% 29%
Plus:
Stock-based
compensation expense 1,017 207 1,060 3,204 837
Amortization of
acquired intangible
assets 175 -- 175 408 --
-------- -------- --------- -------- --------
Non-GAAP professional
services and other
gross profit $ 16,796 $ 2,576 $ (257) $ 20,886 $ 6,936
======== ======== ========= ======== ========
(percent of related
revenue) 71% 44% (3)% 45% 33%
Three
Months
Ended
Three Months Ended September Year Ended
December 31, 30, December 31,
2015 2014 2015 2015 2014
-------- -------- --------- -------- --------
(in thousands)
Non-GAAP income from
operations:
GAAP income from
operations $ 20,624 $ 11,260 $ 822 $ 15,243 $ 6,574
(percent of total
revenue) 23% 17% 1% 5% 3%
Plus:
Stock-based
compensation expense 10,057 7,249 9,157 40,444 30,273
Amortization of
acquired intangible
assets 1,451 1,236 1,615 6,103 5,391
-------- -------- --------- -------- --------
Non-GAAP income from
operations $ 32,132 $ 19,745 $ 11,594 $ 61,790 $ 42,238
======== ======== ========= ======== ========
(percent of total
revenue) 36% 30% 17% 22% 19%
GAAP operating expense $ 49,100 $ 39,775 $ 46,629 $185,842 $152,589
(percent of total
revenue) 55% 60% 67% 67% 70%
Less:
Stock-based
compensation expense 8,117 6,122 7,256 33,217 26,411
-------- -------- --------- -------- --------
Non-GAAP operating
expense $ 40,983 $ 33,653 $ 39,373 $152,625 $126,178
======== ======== ========= ======== ========
(percent of total
revenue) 46% 51% 57% 55% 58%
GAAP sales and marketing
expense $ 23,955 $ 18,967 $ 20,703 $ 83,806 $ 69,471
(percent of total
revenue) 27% 29% 30% 30% 32%
Less:
Stock-based
compensation expense 3,773 2,407 2,812 13,821 9,856
-------- -------- --------- -------- --------
Non-GAAP sales and
marketing expense $ 20,182 $ 16,560 $ 17,891 $ 69,985 $ 59,615
======== ======== ========= ======== ========
(percent of total
revenue) 23% 25% 26% 25% 27%
GAAP research and
development expense $ 15,225 $ 12,940 $ 14,974 $ 60,749 $ 50,125
(percent of total
revenue) 17% 20% 22% 22% 23%
Less:
Stock-based
compensation expense 2,911 2,666 2,428 11,844 10,164
-------- -------- --------- -------- --------
Non-GAAP research and
development expense $ 12,314 $ 10,274 $ 12,546 $ 48,905 $ 39,961
======== ======== ========= ======== ========
(percent of total
revenue) 14% 16% 18% 18% 18%
GAAP general and
administrative expense $ 9,920 $ 7,868 $ 10,952 $ 41,287 $ 32,993
(percent of total
revenue) 11% 12% 16% 15% 15%
Less:
Stock-based
compensation expense 1,433 1,049 2,016 7,552 6,391
-------- -------- --------- -------- --------
Non-GAAP general and
administrative expense $ 8,487 $ 6,819 $ 8,936 $ 33,735 $ 26,602
======== ======== ========= ======== ========
(percent of total
revenue) 9% 10% 13% 12% 12%
Three
Months
Ended
Three Months Ended September Year Ended
December 31, 30, December 31,
2015 2014 2015 2015 2014
-------- -------- --------- -------- --------
(in thousands, except per share data)
Non-GAAP net income and
income per share:
GAAP net income $ 11,622 $ 7,687 $ (3,250) $ 179 $ 296
(percent of total
revenue) 13% 12% (5)% * *
Adjusted for:
Stock-based
compensation expense 10,057 7,249 9,157 40,444 30,273
Amortization of
acquired intangible
assets 1,451 1,236 1,615 6,103 5,391
Non-cash interest
expense on our
convertible senior
notes 3,177 1,521 2,325 8,618 5,906
Foreign currency
transaction losses 403 562 336 1,962 1,300
Loss on repurchase of
convertible senior
notes -- -- 3,752 3,752 --
Non-cash tax provision 3,979 825 (2,997) (2,477) (3,018)
-------- -------- --------- -------- --------
Non-GAAP net income $ 30,689 $ 19,080 $ 10,938 $ 58,581 $ 40,148
======== ======== ========= ======== ========
(percent of total
revenue) 34% 29% 16% 21% 19%
GAAP net income per
basic common share $ 0.40 $ 0.27 $ (0.11) $ 0.01 $ 0.01
Adjusted for:
Stock-based
compensation expense 0.35 0.25 0.31 1.39 1.06
Amortization of
acquired intangible
assets 0.05 0.04 0.06 0.21 0.19
Non-cash interest
expense on our
convertible senior
notes 0.11 0.05 0.08 0.30 0.21
Foreign currency
transaction losses 0.01 0.02 0.01 0.07 0.05
Loss on repurchase of
convertible senior
notes -- -- 0.13 0.13 --
Non-cash tax provision 0.14 0.03 (0.10) (0.09) (0.11)
-------- -------- --------- -------- --------
Non-GAAP net income per
basic common share $ 1.06 $ 0.66 $ 0.37 $ 2.01 $ 1.40
======== ======== ========= ======== ========
GAAP net income per
diluted common share $ 0.39 $ 0.26 $ (0.11) $ 0.01 $ 0.01
Adjusted for:
Stock-based
compensation expense 0.34 0.25 0.31 1.36 1.03
Amortization of
acquired intangible
assets 0.05 0.04 0.05 0.20 0.18
Non-cash interest
expense on our
convertible senior
notes 0.11 0.05 0.08 0.29 0.20
Foreign currency
transaction losses 0.01 0.02 0.01 0.07 0.04
Loss on repurchase of
convertible senior
notes -- -- 0.13 0.13 --
Non-cash tax provision 0.14 0.03 (0.10) (0.08) (0.10)
-------- -------- --------- -------- --------
Non-GAAP net income per
diluted common share $ 1.04 $ 0.65 $ 0.37 $ 1.96 $ 1.37
======== ======== ========= ======== ========
* Less than 1%
^ For the three months ended September 30, 2015, the non-GAAP net income per diluted common share calculation included the dilutive effect of stock-based awards on the weighted average diluted common shares outstanding (such stock-based awards were not reflected in the corresponding GAAP diluted share calculations, as their effect would have been anti-dilutive as a result of the net losses for this periods). Total diluted weighted average common shares outstanding used for calculating non-GAAP net income per diluted common share were 508 thousand for the three months ended September 30, 2015.
For further information contact: Investor Relations: John Kiang, CFA +1-240-720-0625 [email protected] Chris Martin +561-404-2130 [email protected] Media Contacts: Caroline Higgins, Hotwire PR London, for BroadSoft UK +44 (0) 20 7608 4643 [email protected] Brian Lustig, Bluetext PR for BroadSoft US +1 301.775.6203 [email protected]
Source: BroadSoft, Inc.
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