Form 8-K LendingClub Corp For: Feb 11

February 11, 2016 7:35 AM EST

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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 11, 2016
 
LendingClub Corporation
(Exact name of registrant as specified in its charter)

Commission File Number: 001-36771
 
 
Delaware
51-0605731
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
 
 
71 Stevenson St., Suite 300, San Francisco, CA 94105
(Address of principal executive offices and zip code)
(415) 632-5600
(Registrant's telephone number, including area code)
N/A
(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:
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
¨

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
¨

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 11, 2016, LendingClub Corporation ("Lending Club") issued a press release and held a conference call regarding its financial results for the quarter ended December 31, 2015. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.

The information furnished with this Item 2.02, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Lending Club is making reference to non-GAAP financial information in both the press release and the conference call. A reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures is contained in the attached press release.

Item 9.01

 
Financial Statements and Exhibits
(d)

 
Exhibits
Exhibit
Number

 
Exhibit Title or Description
99.1

 
Press Release dated February 11, 2016









SIGNATURE(S)

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
LendingClub Corporation
Date: February 11, 2016
By:
/s/ Carrie Dolan
 
 
Carrie Dolan
 
 
Chief Financial Officer
 
 
(duly authorized officer)



Exhibit 99.1

Lending Club Reports Fourth Quarter and Full Year 2015 Results and
Announces $150 Million Share Buyback
Full year operating revenue up 100% year-over-year to $427 million

SAN FRANCISCO – February 11, 2016 – Lending Club (NYSE: LC), the world’s largest online marketplace connecting borrowers and investors, today reported record results highlighted by all-time highs in originations, operating revenue, contribution margin, adjusted EBITDA and GAAP profitability, while raising its FY2016 outlook. Over the past year, Lending Club has facilitated $8.4 billion in loans to consumers and small businesses and doubled its revenue.

“Our confidence is bolstered again by Lending Club’s performance in 2015 and causes us to raise our outlook for 2016,” said Lending Club founder and CEO Renaud Laplanche. “We have earned the trust of 1.4 million customers, have considerable room to grow our existing products, and intend to continue to expand both our product line and addressable population going forward. Our operating efficiency reached record levels in Q4, and our credit performance, marketing efficiency and customer satisfaction remain very strong. Accordingly, we are raising Lending Club’s 2016 revenue guidance to $730 to $740 million, or 72 percent top line growth, and adjusted EBITDA guidance to $130 to $145 million. We believe there is tremendous long term potential that is not reflected in Lending Club shares and so we are taking this opportunity to use a small portion of our cash to buy back up to $150 million worth of our stock.”

 
 
Quarter Ended December 31,
 
Fiscal Year Ended December 31,
($ in millions)
 
2015
 
2014
 
% Change
 
2015
 
2014
 
% Change
Originations
$
2,579.2

 
$
1,415.0

 
82
%
 
$
8,361.7

 
$
4,377.5

 
91
%
Operating Revenue
$
134.5

 
$
69.6

 
93
%
 
$
426.7

 
$
213.4

 
100
%
Adjusted EBITDA (1)
$
24.6

 
$
7.9

 
210
%
 
$
69.8

 
$
21.3

 
228
%

(1) 
Adjusted EBITDA is a non-GAAP financial measure. Please see the discussion below under the heading Non-GAAP Measures and the reconciliation at the end of this release.

Fourth Quarter 2015 Financial Highlights

Originations – Loan originations in the fourth quarter of 2015 were $2.58 billion, compared to $1.41 billion in the same period last year, an increase of 82% year-over-year. The LendingClub platform has now facilitated over $16.0 billion in loans since inception.

Operating Revenue – Operating revenue in the fourth quarter of 2015 was $134.5 million, compared to $69.6 million in the same period last year, an increase of 93% year-over-year. Operating revenue as a percent of originations, or revenue yield, was 5.21% in the fourth quarter, up from 4.92% in the prior year.

Adjusted EBITDA (2) Adjusted EBITDA was $24.6 million in the fourth quarter of 2015, compared to $7.9 million in the same period last year. As a percent of operating revenue, Adjusted EBITDA margin increased to 18.3% in the fourth quarter of 2015, up from 11.4% in the prior year.

Net Income – GAAP net income was $4.6 million for the fourth quarter of 2015, compared to net loss of $9.0 million in the same period last year. GAAP net income included $13.7 million of stock-based compensation expense during the fourth quarter of 2015, compared to $11.3 million in the prior year.

Earnings Per Share (EPS) – Basic and diluted earnings per share was $0.01 for the fourth quarter, compared to basic and diluted EPS of ($0.07) in the same period last year.





Adjusted EPS (2) Adjusted EPS was $0.05 for the fourth quarter of 2015, compared to $0.01 in the same period last year.

Cash, Cash Equivalents and Securities Available for Sale – As of December 31, 2015, cash, cash equivalents and securities available for sale totaled $921 million, with no outstanding debt.

“We closed out the year with a very strong fourth quarter revenue growth of 93% year over year, adjusted EBITDA growth of 210%, with an adjusted EBITDA margin of 18.3%, and delivered another quarter of GAAP profitability,” said Carrie Dolan, CFO. “We remain confident in our ability to grow originations and revenue at a fast pace in the years to come and in the sustainability of our financial model in various economic environments.”

Other Metrics & Business Highlights
The Lending Club platform reached a $10 billion annual origination run rate in Q4 2015;
Lending Club’s servicing portfolio reached $9.0 billion at year end, paying out $4.1 billion of principal and interest payments to investors in 2015. Based on our current forecasts, the portfolio will pay out over $7.0 billion in principal and interest to investors in 2016, which if reinvested would provide sufficient capital available to fund over half of 2016 targeted originations;
The average investor return after credit losses and fees in 2015 was nearly 8%. Investor returns' lack of correlation with other asset classes and investors’ desire to diversify away from a volatile stock market, with the S&P 500 down nearly 1% in 2015, drove $8.4 billion in investments to the Lending Club platform in 2015;
We opened to retail investors in six new states during the fourth quarter and another two states subsequent to quarter end. Lending Club is now available to retail investors in 43 states and the District of Columbia.

Outlook
Based on the information available as of February 11, 2016, Lending Club provides the following outlook:

First Quarter 2016
Operating Revenues in the range of $147 million to $149 million.
Adjusted EBITDA (2) in the range of $25 million to $27 million.

Full Year 2016
Operating Revenues in the range of $730 million to $740 million, representing a growth rate of 72% from 2015, up from an implied range of $714 million to $717 million as indicated in our early November guidance.
Adjusted EBITDA (2) in the range of $130 million to $145 million, representing a margin of roughly 19% at the midpoint, up from an implied guidance of $129 million as indicated in our early November guidance.

(2) Adjusted EBITDA and Adjusted EPS are non-GAAP financial measures. Please see the discussion below under the heading Non-GAAP Measures and the reconciliations at the end of this release.

Share Repurchase

The board of directors has approved a share repurchase program under which Lending Club may repurchase up to $150 million of the Company’s common shares in open market or privately negotiated transactions in compliance with Securities and Exchange Act Rule 10b-18. This repurchase plan is valid for one year and does not obligate the Company to acquire any particular amount of common stock, and may be suspended at any time at Lending Club’s discretion.





About Lending Club

Lending Club's mission is to transform the banking system to make credit more affordable and investing more rewarding. The company's technology platform enables it to deliver innovative solutions to borrowers and investors. Since launching in 2007, the Lending Club platform has facilitated over $16.0 billion in consumer loans and has more than doubled annual loan volume each year. We operate at a lower cost than traditional bank lending programs, so we're able to pass the savings on to borrowers in the form of lower rates and to investors in the form of solid returns. Lending Club is based in San Francisco, California. More information is available at https://www.lendingclub.com. Currently only residents of the following states may invest in Lending Club notes: AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, ME, MI, MN, MO, MS, MT, NE, NH, NJ, NV, NY, OK, OR, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, or WY. All loans made by WebBank, a Utah-chartered Industrial Bank, Member FDIC.

Conference Call and Webcast Information

The Lending Club’s Fourth Quarter and Full Year 2015 webcast and teleconference is scheduled to begin at 5:30 a.m. Pacific Time on Thursday, February 11, 2016. A live webcast of the call will be available at http://ir.lendingclub.com under the Events & Presentations menu. To access the call, please dial +1 (888) 317-6003, or outside the U.S. +1 (412) 317-6061, with conference ID 6137204, ten minutes prior to 5:30 a.m. Pacific Time (or 8:30 a.m. Eastern Time). An audio archive of the call will be available at http://ir.lendingclub.com. An audio replay will be also available on February 11, 2016, until February 18, 2016, by calling +1 (877) 344-7529 or +1 (412) 317-0088, with Conference ID 10079107.

Contacts

For Investors:
James Samford
IR@lendingclub.com

Press Contact:
Grayling PR
(415) 593-1400
LendingClub@grayling.com




Non-GAAP Measures

Our non-GAAP measures have limitations as analytical tools and you should not consider them in isolation or as a substitute for an analysis of our results under GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. Contribution, contribution margin, adjusted EBITDA, adjusted EBITDA margin, and adjusted EPS should not be viewed as substitutes for, or superior to, net income (loss), and basic and diluted EPS, as prepared in accordance with GAAP. Other companies, including companies in our industry, may calculate these measures differently, which may reduce their usefulness as a comparative measure. Contribution, contribution margin, adjusted EBITDA, adjusted EBITDA margin and adjusted EPS do not consider the potentially dilutive impact of stock-based compensation. Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future and adjusted EBITDA and adjusted EBITDA margin do not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements. Adjusted EBITDA and adjusted EBITDA margin do not reflect tax payments that may represent a reduction in cash available to us. Please see the “Reconciliation of GAAP to Non-GAAP Measures” tables at the end of this release.

In evaluating contribution, contribution margin, adjusted EBITDA, adjusted EBITDA margin and adjusted EPS, you should be aware that in the future we will incur expenses similar to the adjustments in this presentation.

Safe Harbor Statement

Some of the statements in this above are forward-looking statements. The words anticipate, believe, estimate, expect, intend, may, outlook, plan, predict, project, will, would and similar expressions may identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company may not actually achieve the plans, intentions or expectations disclosed in forward-looking statements, and you should not place undue reliance on forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in forward-looking statements. The Company does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Information in this press release is not an offer to sell securities or the solicitation of an offer to buy securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

Additional information about Lending Club is available in the prospectus for Lending Club’s notes, which can be obtained on Lending Club’s website at https://www.lendingclub.com/info/prospectus.action.





LENDINGCLUB CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)

 
Three months ended December 31,
 
Twelve months ended December 31,
 
2015
 
2014
 
2015
 
2014
Operating revenue:
 
 
 
 
 
 
 
Transaction fees
$
114,955

 
$
63,289

 
$
373,508

 
$
197,124

Servicing fees
11,941

 
5,233

 
32,811

 
11,534

Management fees
3,313

 
1,794

 
10,976

 
5,957

Other revenue (expense)
4,262

 
(765
)
 
9,402

 
(1,203
)
Total operating revenue
134,471

 
69,551

 
426,697

 
213,412

Net interest income (expense) after fair value adjustments
1,047

 
(1,430
)
 
3,246

 
(2,284
)
Total net revenue
135,518

 
68,121

 
429,943

 
211,128

Operating expenses: (1)(2)
 
 
 
 
 
 
 
Sales and marketing
53,537

 
26,035

 
171,526

 
85,652

Origination and servicing
17,696

 
11,661

 
61,335

 
37,326

Engineering and product development
23,887

 
12,923

 
77,062

 
38,518

Other general and administrative
35,245

 
26,208

 
122,182

 
81,136

Total operating expenses
130,365

 
76,827

 
432,105

 
242,632

Income (loss) before income tax expense
5,153

 
(8,706
)
 
(2,162
)
 
(31,504
)
Income tax expense
584

 
331

 
2,833

 
1,390

Net income (loss)
$
4,569

 
$
(9,037
)
 
$
(4,995
)
 
$
(32,894
)
Basic net income (loss) per share attributable to common stockholders
$
0.01

 
$
(0.07
)
 
$
(0.01
)
 
$
(0.44
)
Diluted net income (loss) per share attributable to common stockholders
$
0.01

 
$
(0.07
)
 
$
(0.01
)
 
$
(0.44
)
Weighted-average common shares – Basic
378,631,340

 
127,859,281

 
374,872,118

 
75,573,742

Weighted-average common shares – Diluted
402,634,010

 
127,859,281

 
374,872,118

 
75,573,742

(1) 
Includes stock-based compensation expense as follows:
 
Three months ended December 31,
 
Twelve months ended December 31,
 
2015
 
2014(2)
 
2015(2)
 
2014(2)
Sales and marketing
$
1,746

 
$
863

 
$
7,250

 
$
5,476

Origination and servicing
748

 
538

 
2,735

 
1,653

Engineering and product development
3,449

 
2,182

 
11,335

 
6,445

Other general and administrative
7,721

 
7,678

 
29,902

 
23,576

Total stock-based compensation expense
$
13,664

 
$
11,261


$
51,222


$
37,150

(2) 
In the fourth quarter of 2015, the Company disaggregated the expense previously reported as “General and administrative” into “Engineering and product development” and “Other general and administrative” expense. Additionally, the Company reclassified certain operating expenses between “Sales and marketing,” “Origination and servicing,” “Engineering and product development” and “Other general and administrative” expense to align such classification and presentation with how the Company currently manages the operations and these expenses. These changes had no impact to “Total operating expenses.” Prior period amounts have been reclassified to conform to the current presentation.




LENDINGCLUB CORPORATION
OPERATING AND FINANCIAL HIGHLIGHTS
(In thousands, except percentages and number of employees, or as noted)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
December 31, 
 2015
 
Three months ended
 
% Change
 
December 31,
2014
 
March 31,
2015
 
June 30,
2015
 
September 30, 2015
 
December 31, 
 2015
 
Q/Q
 
Y/Y
Operating Highlights:
Loan originations (in millions)
$
1,415

 
$
1,635

 
$
1,912

 
$
2,236

 
$
2,579

 
15
 %
 
82
 %
Operating revenue
$
69,551

 
$
81,045

 
$
96,119

 
$
115,062

 
$
134,471

 
17
 %
 
93
 %
Contribution (1)(2)
33,256

 
36,488

 
44,344

 
57,257

 
65,732

 
15
 %
 
98
 %
Contribution margin (1)(2)
47.8
%
 
45.0
%
 
46.1
%
 
49.8
%
 
48.9
%
 
N/M

 
N/M

Adjusted EBITDA (1)
$
7,916

 
$
10,646

 
$
13,399

 
$
21,157

 
$
24,556

 
16
 %
 
210
 %
Adjusted EBITDA margin (1)
11.4
%
 
13.1
%
 
13.9
%
 
18.4
%
 
18.3
%
 
N/M

 
N/M

Adjusted EPS - diluted (1)
$
0.01

 
$
0.02

 
$
0.03

 
$
0.04

 
$
0.05

 
N/M

 
N/M

Standard Program Originations by Investor Type:
Managed accounts, individuals
48
%
 
51
%
 
50
%
 
44
%
 
45
%
 
 
 
 
Self-managed, individuals
19
%
 
24
%
 
20
%
 
20
%
 
17
%
 
 
 
 
Institutional investors
33
%
 
25
%
 
30
%
 
36
%
 
38
%
 
 
 
 
Total
100
%
 
100
%
 
100
%
 
100
%
 
100
%
 
 
 
 
Originations by Program:
 
 
 
 
 
 
 
 
 
 
 
 
 
Standard program
78
%
 
79
%
 
76
%
 
76
%
 
77
%
 
 
 
 
Custom program
22
%
 
21
%
 
24
%
 
24
%
 
23
%
 
 
 
 
Total
100
%
 
100
%
 
100
%
 
100
%
 
100
%
 
 
 
 
Servicing Portfolio by Method Financed (in millions, at end of period):
Notes
$
1,055

 
$
1,210

 
$
1,314

 
$
1,458

 
$
1,576

 
8
 %
 
49
 %
Certificates
1,797

 
2,067

 
2,381

 
2,692

 
3,105

 
15
 %
 
73
 %
Whole loans sold
1,874

 
2,300

 
2,853

 
3,548

 
4,289

 
21
 %
 
129
 %
Total
$
4,726

 
$
5,577

 
$
6,548

 
$
7,698

 
$
8,970

 
17
 %
 
90
 %
Select Balance Sheet Information (in millions, at end of period):
Cash and cash equivalents
$
870

 
$
874

 
$
490

 
$
579

 
$
624

 
8
 %
 
(28
)%
Securities available for sale
$

 
$

 
$
398

 
$
339

 
$
297

 
(12
)%
 
N/M

Loans
$
2,799

 
$
3,231

 
$
3,637

 
$
4,069

 
$
4,556

 
12
 %
 
63
 %
Notes and certificates
$
2,814

 
$
3,249

 
$
3,660

 
$
4,095

 
$
4,572

 
12
 %
 
62
 %
Total assets
$
3,890

 
$
4,328

 
$
4,783

 
$
5,360

 
$
5,794

 
8
 %
 
49
 %
Total stockholders' equity
$
973

 
$
982

 
$
996

 
$
1,016

 
$
1,042

 
3
 %
 
7
 %
Condensed Cash Flow Information:
Net cash flow from operating activities
$
14,525

 
$
6,495

 
$
15,278

 
$
31,577

 
$
21,391

 
 
 
 
Cash flow related to loans
(304,472
)
 
(479,976
)
 
(458,923
)
 
(504,065
)
 
(591,626
)
 
 
 
 
Other
(27,125
)
 
1,276

 
(425,803
)
 
(53,427
)
 
105,844

 
 
 
 
Net cash used in investing activities
(331,597
)
 
(478,700
)
 
(884,726
)
 
(557,492
)
 
(485,782
)
 
 
 
 
Cash flow related to notes and certificates
301,593

 
483,543

 
462,978

 
507,870

 
580,602

 
 
 
 
Other
802,585

 
(6,993
)
 
22,811

 
106,785

 
(71,886
)
 
 
 
 
Net cash flow from financing activities
1,104,178

 
476,550

 
485,789

 
614,655

 
508,716

 
 
 
 
Net change in cash and cash equivalents
$
787,106

 
$
4,345

 
$
(383,659
)
 
$
88,740

 
$
44,325

 
 
 
 
Employees and contractors (3)
843

 
976

 
1,136

 
1,305

 
1,382

 
 
 
 
Notes:
N/M Not meaningful.
(1)
Represents a Non-GAAP measure. See Reconciliation of GAAP to Non-GAAP measures.
(2)
Prior period amounts have been reclassified to conform to the current period presentation. See “Condensed Consolidated Statements of Operations” for further details.
(3)    As of the end of each respective period.




LENDINGCLUB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(In thousands, except percentages and per share data)
(Unaudited)

 
Three months ended
 
Twelve months ended
 
December 31,
2014
 
March 31,
2015
 
June 30,
2015
 
September 30, 2015
 
December 31, 
 2015
 
December 31,
2014
 
December 31, 
 2015
Contribution reconciliation:
Net income (loss)
$
(9,037
)
 
$
(6,374
)
 
$
(4,140
)
 
$
950

 
$
4,569

 
$
(32,894
)
 
$
(4,995
)
Net interest expense (income) and other adjustments
1,430

 
(187
)
 
(798
)
 
(1,214
)
 
(1,047
)
 
2,284

 
(3,246
)
Engineering and product development expense (1)
12,923

 
13,898

 
18,214

 
21,063

 
23,887

 
38,518

 
77,062

Other general and administrative expense (1)
26,208

 
26,410

 
28,247

 
32,280

 
35,245

 
81,136

 
122,182

Stock-based compensation expense (1)
1,401

 
2,114

 
2,432

 
2,945

 
2,494

 
7,129

 
9,985

Income tax expense
331

 
627

 
389

 
1,233

 
584

 
1,390

 
2,833

Contribution (1)
$
33,256

 
$
36,488

 
$
44,344

 
$
57,257

 
$
65,732

 
$
97,563

 
$
203,821

Total operating revenue
$
69,551

 
$
81,045

 
$
96,119

 
$
115,062

 
$
134,471

 
$
213,412

 
$
426,697

Contribution margin (1)
47.8
%
 
45.0
%
 
46.1
%
 
49.8
%
 
48.9
%
 
45.7
%
 
47.8
%
Adjusted EBITDA reconciliation:
Net income (loss)
$
(9,037
)
 
$
(6,374
)
 
$
(4,140
)
 
$
950

 
$
4,569

 
$
(32,894
)
 
$
(4,995
)
Net interest expense (income) and other adjustments
1,430

 
(187
)
 
(798
)
 
(1,214
)
 
(1,047
)
 
2,284

 
(3,246
)
Acquisition and related expense
293

 
294

 
403

 
937

 
733

 
3,113

 
2,367

Depreciation expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
Engineering and product development
1,868

 
2,744

 
3,261

 
3,808

 
4,007

 
5,194

 
13,820

Other general and administrative
383

 
404

 
524

 
708

 
790

 
1,166

 
2,426

Amortization of intangible assets
1,387

 
1,545

 
1,274

 
1,256

 
1,256

 
3,898

 
5,331

Stock-based compensation expense
11,261

 
11,593

 
12,486

 
13,479

 
13,664

 
37,150

 
51,222

Income tax expense
331

 
627

 
389

 
1,233

 
584

 
1,390

 
2,833

Adjusted EBITDA
$
7,916

 
$
10,646

 
$
13,399

 
$
21,157


$
24,556


$
21,301


$
69,758

Total operating revenue
$
69,551

 
$
81,045

 
$
96,119

 
$
115,062

 
$
134,471

 
$
213,412

 
$
426,697

Adjusted EBITDA margin
11.4
%
 
13.1
%
 
13.9
%
 
18.4
%

18.3
%
 
10.0
%
 
16.3
%
Adjusted net income and earnings per share (EPS):
Net income (loss)
$
(9,037
)
 
$
(6,374
)
 
$
(4,140
)
 
$
950

 
$
4,569

 
$
(32,894
)
 
$
(4,995
)
Acquisition and related expense
293

 
294

 
403

 
937

 
733

 
3,113

 
2,367

Stock-based compensation expense
11,261

 
11,593

 
12,486

 
13,479

 
13,664

 
37,150

 
51,222

Amortization of acquired intangible assets
1,387

 
1,545

 
1,274

 
1,256

 
1,256

 
3,898

 
5,331

Income tax effects related to acquisitions
331

 
627

 
389

 
1,233

 
584

 
1,390

 
2,833

Adjusted net income
$
4,235

 
$
7,685

 
$
10,412

 
$
17,855

 
$
20,806

 
$
12,657

 
$
56,758

GAAP diluted shares (2)
127,859

 
371,959

 
372,842

 
401,935

 
402,634

 
75,574

 
374,872

Diluted effect of preferred stock conversion (3)
195,608

 

 

 

 

 
235,745

 

Other dilutive equity awards
39,488

 
38,166

 
32,808

 

 

 
40,767

 
26,717

Non-GAAP diluted shares
362,955

 
410,125

 
405,650

 
401,935

 
402,634

 
352,086

 
401,589

Adjusted EPS – diluted
$
0.01

 
$
0.02

 
$
0.03

 
$
0.04

 
$
0.05

 
$
0.04

 
$
0.14

Notes:
(1)
Prior period amounts have been reclassified to conform to the current period presentation. See “Condensed Consolidated Statements of Operations” for further details.
(2)
Equivalent to the basic and diluted shares reflected in the quarterly EPS calculations.
(3)
For the fourth quarter of 2014 and prior quarters, gives effect to the conversion of convertible preferred stock into common stock as though the conversion had occurred at the beginning of the period under the “if converted” method.




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