Form 8-K CALLIDUS SOFTWARE INC For: Feb 08
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
__________________________
FORM 8-K
__________________________
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: February 8, 2018
(Date of earliest event reported)
__________________________
Callidus Software Inc.
(Exact name of Registrant as specified in its charter)
__________________________
| Delaware | 000-50463 | 77-0438629 | ||
|
(State or other jurisdiction of incorporation) |
(Commission file number) |
(I.R.S. Employer Identification No.) |
4140 Dublin Boulevard, Suite 400, Dublin, California 94568
(Address of principal executive offices) (Zip Code)
(925) 251-2200
(Registrant’s telephone number, including area code)
(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 obligations of the registrant under any of the following provisions (see General Instruction A.2 below):
| ☐ | 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)) |
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02. | Results of Operations and Financial Condition |
On February 8, 2018, Callidus Software Inc. announced financial results for the quarter and year ended December 31, 2017.
| Item 9.01. | Financial Statements and Exhibits |
| (d) | Exhibits |
The following exhibit is furnished herewith:
|
Exhibit |
Description | |
| 99.1 | Press Release of Callidus Software Inc. dated February 8, 2018. | |
SIGNATURES
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.
| CALLIDUS SOFTWARE INC. | ||||
| Date: February 8, 2018 | By: |
/s/ Roxanne Oulman | ||
| Roxanne Oulman | ||||
| Executive Vice President, Chief Financial Officer | ||||
EXHIBIT INDEX
|
Exhibit |
Description | |
| 99.1 | Press Release of Callidus Software Inc. dated February 8, 2018. | |
Exhibit 99.1
CallidusCloud Reports Q4 2017 Total Revenue of $69.5 Million and $253.1 Million in 2017
| - | Q4 SaaS Revenue Increases 30% to $54.6 Million |
| - | Cash from Operations of $13.0 Million, up 45% Year over Year |
| - | 2017 SaaS Revenue of $198.2 Million, up 31% Year over Year |
| - | SaaS Deferred Revenue of $129.3 Million, up 31% Year over Year |
DUBLIN, CA., February 8, 2018— Callidus Software Inc. (NASDAQ: CALD), a global leader in cloud-based sales, marketing, learning and customer experience solutions, today announced financial results for the year ended December 31, 2017.
Recent Acquisition Announcement
On January 29, 2018, CallidusCloud entered into a merger agreement with SAP America, Inc. (“SAP”) under which SAP will acquire CallidusCloud for $36.00 per share in an all-cash transaction valued at approximately $2.5 billion, inclusive of CallidusCloud’s net cash.
In light of this, CallidusCloud will not hold a conference call to discuss these financial results.
Financial Highlights for the Fourth Quarter 2017
SaaS revenue was $54.6 million, an increase of 30% over the same quarter in the prior year. Maintenance revenue was $450,000, resulting in total recurring revenue of $55.0 million. SaaS revenue growth continued to benefit from success in our Lead to Money suite. Professional services revenue was $14.1 million. Total revenue was $69.5 million for the fourth quarter, an increase of 24% year-over-year. Normalized SaaS billings growth was 28% for the trailing twelve-month period. Normalized billings growth for the quarter was 38%. Cash and short-term investments were $150.5 million. Cash flow from operations for the quarter was $13.0 million, compared to $9.0 million in the same quarter of the prior year.
| 1 |
GAAP Performance
| · | Recurring revenue gross margin was 73%, compared to 74% for the same quarter in the prior year. |
| · | Overall gross margin was 62%, consistent with the corresponding period in the prior year. |
| · | Operating loss was $3.8 million, compared to $4.2 million for the same quarter in the prior year. |
| · | Pre-tax loss was $3.4 million, compared to $4.4 million for the same quarter in the prior year. |
Non-GAAP Performance
The following non-GAAP measures are described below and are reconciled to the corresponding GAAP measures at the end of this press release.
| · | Recurring revenue gross margin was 77%, consistent with the corresponding period in the prior year. |
| · | Overall gross margin was 67%, compared to 66% for the same quarter in the prior year. |
| · | Operating income was $8.6 million, compared to $5.8 million for the same quarter in the prior year. |
| · | Pre-tax income was $9.0 million, compared to $5.6 million for the same quarter in the prior year. |
Financial Highlights for the Full Year 2017
SaaS revenue was $198.2 million, an increase of 31% over the prior year, while maintenance revenue was $2.8 million, resulting in total recurring revenue of $201.0 million. Professional services revenue was $51.7 million. Total reported revenue was $253.1 million for the year, an increase of 22%. Cash flow from operations for the full year was $43.0 million, reflecting a 44% increase over last year.
GAAP Performance
| · | Recurring revenue gross margin was 72%, compared to 74% in the prior year. |
| · | Overall gross margin was 61%, compared to 62% in the prior year. |
| · | Operating loss was $21.4 million, compared to $17.4 million in the prior year. |
| · | Pre-tax loss was $20.5 million, compared to $17.8 million in the prior year. |
| 2 |
Non-GAAP Performance
The following non-GAAP measures are described below and are reconciled to the corresponding GAAP measures at the end of this press release.
| · | Recurring revenue gross margin was 76%, compared to 77% in the prior year. |
| · | Overall gross margin was 65%, compared to 66% in the prior year. |
| · | Operating income was $24.1 million, compared to $18.1 million in the prior year. |
| · | Pre-tax income was $25.1 million, compared to $17.7 million in the prior year. |
Financial Outlook
Following the announcement made on January 29, 2018, regarding CallidusCloud’s entry into a definitive agreement to be acquired by SAP, the Company will not provide outlook for its 2018 financial results. Furthermore, the Company is withdrawing all previously issued financial guidance for the full year 2018.
For more information, please visit: http://www.calliduscloud.com/about-us/investor-relations/
About CallidusCloud
Callidus Software Inc. (NASDAQ: CALD), doing business as CallidusCloud®, is the global leader in cloud-based sales, marketing, learning and customer experience solutions. CallidusCloud enables organizations to accelerate and maximize their Lead to Money process with a complete suite of solutions that identify the right leads, ensure proper territory and quota distribution, enable sales forces, automate configure price quote, and streamline sales compensation – driving bigger deals, faster. Over 6,400 leading organizations, across all industries, rely on CallidusCloud to optimize the Lead to Money process to close more deals for more money in record time.
For more information, please visit www.calliduscloud.com.
Non-GAAP Financial Measures
In this release, CallidusCloud has provided additional financial information that has not been prepared in accordance with GAAP. This information includes non-GAAP gross margin, non-GAAP recurring revenue gross margin, non-GAAP operating expenses, non-GAAP operating income, and non-GAAP net income before provision for income taxes. CallidusCloud uses non-GAAP measures internally in analyzing its financial results and believes that they are useful to investors as a supplement to GAAP measures in evaluating CallidusCloud’s operating performance. CallidusCloud believes that the use of these non-GAAP measures provides additional insight for investors to use in evaluation of ongoing operating results and trends and in comparing its financial measures with other companies in CallidusCloud’s industry, many of which present non-GAAP financial measures that may resemble our non-GAAP financial measures. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
| 3 |
Our non-GAAP measures reflect adjustments based on the following items:
Stock-based compensation expense: We have excluded the effect of stock-based compensation expense from our non-GAAP gross profit, recurring revenue gross profit, operating expenses, operating income, and net income before provision for income taxes. We believe the exclusion of stock-based compensation expense provides a useful comparison of our operating results to our peers.
Restructuring and other expense: We have excluded the effect of restructuring and other expense from our non-GAAP operating expenses, operating income and net income before provision for income taxes. Restructuring and other expense consists of employee severance and facility exit costs. We feel it is useful to investors to understand the effects of these items on our financial results.
Patent litigation and settlement costs: We have excluded patent litigation and settlement costs from our non-GAAP gross profit, recurring revenue gross profit, operating expenses, operating income, and net income before provision for income taxes. We believe patent litigation and settlement costs are not indicative of our ongoing business operations, and are inconsistent in amount and frequency; as such we exclude these costs during our evaluation of our business performance.
Non-cash amortization of acquired intangible assets: We have excluded the effect of amortization of acquired intangibles which include developed technology, customer relationships, trade names, domain names, patents and licenses, and order backlog from our non-GAAP gross profit, recurring revenue gross profit, operating expenses, operating income, other income and expense, and net income before provision for income taxes. Amortization of acquired intangibles are significantly affected by timing, and as such, can be inconsistent in amount and nature.
Acquisition-related costs: We have excluded the costs related to acquisitions from our non-GAAP operating expenses, operating income, net income and net income before provision for income taxes. These costs include legal and transactional costs associated with acquisition activities as well as expense related to earnouts that we would not have otherwise incurred in the periods presented as part of our continuing operations. We believe the exclusion of acquisition-related costs provides a useful comparison of our operating results to our peers.
Cash taxes: Cash taxes are defined as GAAP current income tax expense excluding the related tax amount for non-cash and non-GAAP items.
| 4 |
Additionally, CallidusCloud believes the following supplemental non-GAAP financial information is useful to investors and others in assessing its operating performance. A calculation of the supplemental non-GAAP financial information is provided in the table titled “Non-GAAP Supplemental Financial Information.”
| · | SaaS billings is calculated as SaaS revenue plus the sequential change in SaaS deferred revenue in a period. |
| · | Normalized SaaS billings is calculated as SaaS revenue plus the sequential change in SaaS deferred revenue, reduced by the remaining deferred revenue acquired during the period, plus or minus the effect of multiple year SaaS billings in that period. |
We believe that normalized SaaS billings provide valuable insight into the sales of our solutions and the performance of our business. We do not consider normalized SaaS billings as a substitute for revenue recognition or revenue measurement.
Note on Forward-Looking Statements
The forward-looking statements included in this press release, including for example statements regarding the proposed merger with SAP and estimates of future revenues, reflect management’s best judgment based on factors currently known and involve risks and uncertainties. These risks and uncertainties include, but are not limited to, the risk that parties may be unable to consummate the proposed merger with SAP due to failure to satisfy conditions to the completion of the merger, including the receipt of stockholder approval or regulatory approval, which might not be obtained on the terms expected, on the anticipated schedule or at all, and other risks detailed in periodic reports we file with the Securities and Exchange Commission, including our most recent Quarterly Report on Form 10-Q which may be obtained by contacting CallidusCloud’s Investor Relations department at 415-445-3232, or from the Investor Relations section of CallidusCloud’s website (http://www.calliduscloud.com/about-us/investor-relations/). Actual results may differ materially from those presently reported. We assume no obligation to update the information contained in this release.
© 2018 Callidus Software Inc. All rights reserved. Callidus, Callidus Software, the Callidus Software logo, CallidusCloud, the CallidusCloud logo, Badgeville, BridgeFront, Clicktools, Datahug, iCentera, Lead to Money, LeadFormix, LeadRocket, Learning Heroes, LearningSeat, Learnpass, Litmos, the Litmos logo, OrientDB, Producer Pro, RevSym, SalesGenius, Surve, Syncfrog, Thunderbridge, and ViewCentral are trademarks, service marks, or registered trademarks of Callidus Software Inc. and its affiliates in the United States and other countries. All other brand, service or product names are trademarks or registered trademarks of their respective companies or owners.
Investor Relations Contact
Carolyn Bass
Market Street Partners
(415) 445-3232
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CALLIDUS SOFTWARE INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Revenue: | ||||||||||||||||
| Recurring | $ | 55,021 | $ | 44,225 | $ | 201,006 | $ | 162,586 | ||||||||
| Services and license | 14,490 | 11,857 | 52,085 | 44,132 | ||||||||||||
| Total revenue | 69,511 | 56,082 | 253,091 | 206,718 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| Recurring | 15,074 | 11,671 | 55,482 | 42,719 | ||||||||||||
| Services and license | 11,088 | 9,537 | 43,010 | 35,358 | ||||||||||||
| Total cost of revenue | 26,162 | 21,208 | 98,492 | 78,077 | ||||||||||||
| Gross profit | 43,349 | 34,874 | 154,599 | 128,641 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing | 24,599 | 21,659 | 93,439 | 78,601 | ||||||||||||
| Research and development | 10,130 | 8,585 | 37,681 | 31,712 | ||||||||||||
| General and administrative | 12,375 | 9,350 | 43,738 | 35,795 | ||||||||||||
| Income from settlement and patent licensing | — | (500 | ) | — | (500 | ) | ||||||||||
| Restructuring and other | 61 | — | 1,189 | 482 | ||||||||||||
| Total operating expenses | 47,165 | 39,094 | 176,047 | 146,090 | ||||||||||||
| Operating loss | (3,816 | ) | (4,220 | ) | (21,448 | ) | (17,449 | ) | ||||||||
| Interest income and other income (expense) | 379 | (67 | ) | 1,021 | (122 | ) | ||||||||||
| Interest expense | (8 | ) | (137 | ) | (66 | ) | (267 | ) | ||||||||
| Loss before provision (benefit) for income taxes | (3,445 | ) | (4,424 | ) | (20,493 | ) | (17,838 | ) | ||||||||
| Provision (benefit) for income taxes | (1,243 | ) | 373 | (220 | ) | 1,128 | ||||||||||
| Net loss | $ | (2,202 | ) | $ | (4,797 | ) | $ | (20,273 | ) | $ | (18,966 | ) | ||||
| Net loss per share | ||||||||||||||||
| Basic and Diluted | $ | (0.03 | ) | $ | (0.08 | ) | $ | (0.31 | ) | $ | (0.32 | ) | ||||
| Weighted average shares used in computing net loss per share: | ||||||||||||||||
| Basic and Diluted | 65,995 | 63,663 | 65,272 | 58,852 | ||||||||||||
| 6 |
CALLIDUS SOFTWARE INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
| December 31, | December 31, | |||||||
| 2017 | 2016 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 75,251 | $ | 148,008 | ||||
| Short-term investments | 75,248 | 39,266 | ||||||
| Accounts receivable, net | 76,750 | 55,464 | ||||||
| Prepaid and other current assets | 24,007 | 18,275 | ||||||
| Total current assets | 251,256 | 261,013 | ||||||
| Property and equipment, net | 57,058 | 35,456 | ||||||
| Goodwill | 96,092 | 63,957 | ||||||
| Intangible assets, net | 36,641 | 21,659 | ||||||
| Deposits and other non-current assets | 6,400 | 4,416 | ||||||
| Total assets | $ | 447,447 | $ | 386,501 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 3,973 | $ | 3,573 | ||||
| Accrued payroll and related expenses | 21,079 | 17,831 | ||||||
| Accrued expenses | 26,190 | 15,126 | ||||||
| Deferred revenue | 133,313 | 99,758 | ||||||
| Total current liabilities | 184,555 | 136,288 | ||||||
| Deferred revenue, non-current | 506 | 3,209 | ||||||
| Deferred income taxes, non-current | 2,252 | 1,541 | ||||||
| Other non-current liabilities | 15,175 | 8,602 | ||||||
| Total liabilities | 202,488 | 149,640 | ||||||
| Stockholders’ equity: | ||||||||
| Common stock | 66 | 64 | ||||||
| Additional paid-in capital | 583,490 | 559,200 | ||||||
| Treasury stock | (14,430 | ) | (14,430 | ) | ||||
| Accumulated other comprehensive loss | (1,062 | ) | (5,141 | ) | ||||
| Accumulated deficit | (323,105 | ) | (302,832 | ) | ||||
| Total stockholders’ equity | 244,959 | 236,861 | ||||||
| Total liabilities and stockholders’ equity | $ | 447,447 | $ | 386,501 | ||||
| 7 |
CALLIDUS SOFTWARE INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
| Twelve Months Ended December 31, | ||||||||
| 2017 | 2016 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (20,273 | ) | $ | (18,966 | ) | ||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
| Depreciation expense | 11,738 | 8,041 | ||||||
| Amortization of intangible assets | 8,677 | 6,431 | ||||||
| Provision for doubtful accounts | 1,602 | 1,548 | ||||||
| Stock-based compensation | 33,420 | 29,123 | ||||||
| Excess tax benefits from stock-based compensation | - | (59 | ) | |||||
| Deferred income taxes | (1,660 | ) | 210 | |||||
| Loss on disposal of property and equipment | 5 | 23 | ||||||
| Loss on foreign currency from mark-to-market derivatives | 180 | 23 | ||||||
| Net amortization on investments | 125 | 170 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (19,517 | ) | (12,439 | ) | ||||
| Prepaid and other current assets | (2,091 | ) | (6,118 | ) | ||||
| Other non-current assets | (1,877 | ) | (426 | ) | ||||
| Accounts payable | 622 | (1,088 | ) | |||||
| Accrued expenses | 707 | (1,237 | ) | |||||
| Accrued payroll and related expenses | 2,766 | 5,321 | ||||||
| Accrued restructuring and other expenses | 56 | 252 | ||||||
| Deferred revenue | 28,480 | 18,970 | ||||||
| Net cash provided by operating activities | 42,960 | 29,779 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchases of investments | (80,738 | ) | (37,409 | ) | ||||
| Proceeds from maturities of investments | 37,009 | 16,715 | ||||||
| Proceeds from sale of investments | 5,644 | 726 | ||||||
| Purchases of property and equipment | (19,519 | ) | (15,599 | ) | ||||
| Purchases of intangible assets | (458 | ) | (962 | ) | ||||
| Acquisitions, net of cash acquired | (44,790 | ) | (22,574 | ) | ||||
| Change in restricted cash | (1,355 | ) | - | |||||
| Net cash used in investing activities | (104,207 | ) | (59,103 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from follow-on offering, net of issuance costs | - | 100,345 | ||||||
| Proceeds from issuance of common stock | 5,951 | 4,384 | ||||||
| Restricted stock units acquired to settle employee withholding liability | (15,184 | ) | (3,479 | ) | ||||
| Excess tax benefits from stock-based compensation | - | 59 | ||||||
| Payment of consideration related to acquisitions | (2,400 | ) | (510 | ) | ||||
| Net cash (used in) provided by financing activities | (11,633 | ) | 100,799 | |||||
| Effect of foreign currency exchange rates on cash and cash equivalents | 123 | (699 | ) | |||||
| Net (decrease) increase in cash and cash equivalents | (72,757 | ) | 70,776 | |||||
| Cash and cash equivalents at beginning of period | 148,008 | 77,232 | ||||||
| Cash and cash equivalents at end of period | $ | 75,251 | $ | 148,008 | ||||
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CALLIDUS SOFTWARE INC.
GAAP TO NON-GAAP ADJUSTMENT SUMMARY
(In thousands)
(unaudited)
GAAP to Non-GAAP adjustments include stock-based compensation, amortization of acquired intangible assets, patent litigation and settlement costs, acquisition-related costs, restructuring and other expenses as follows:
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Cost of revenue: | ||||||||||||||||
| Recurring | $ | 2,334 | $ | 1,410 | $ | 7,661 | $ | 5,067 | ||||||||
| Services and license | 571 | 530 | 2,340 | 2,097 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing | 2,949 | 3,091 | 11,026 | 10,707 | ||||||||||||
| Research and development | 2,041 | 1,556 | 7,157 | 5,147 | ||||||||||||
| General and administrative | 4,476 | 3,396 | 16,170 | 12,010 | ||||||||||||
| Restructuring and other | 61 | - | 1,189 | 482 | ||||||||||||
| Total | $ | 12,432 | $ | 9,983 | $ | 45,543 | $ | 35,510 | ||||||||
CALLIDUS SOFTWARE INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except for percentages)
(unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Non-GAAP gross profit reconciliation: | ||||||||||||||||
| Gross profit | $ | 43,349 | $ | 34,874 | $ | 154,599 | $ | 128,641 | ||||||||
| Gross margin | 62 | % | 62 | % | 61 | % | 62 | % | ||||||||
| Add back: | ||||||||||||||||
| Stock-based compensation | 1,037 | 819 | 4,087 | 3,736 | ||||||||||||
| Non-cash amortization of acquired | ||||||||||||||||
| intangible assets | 1,868 | 1,121 | 5,914 | 3,428 | ||||||||||||
| Non-GAAP gross profit | $ | 46,254 | $ | 36,814 | $ | 164,600 | $ | 135,805 | ||||||||
| Gross margin | 67 | % | 66 | % | 65 | % | 66 | % | ||||||||
| Non-GAAP recurring revenue gross profit reconciliation: | ||||||||||||||||
| Recurring revenue gross profit | $ | 39,947 | $ | 32,554 | $ | 145,524 | $ | 119,867 | ||||||||
| Recurring revenue gross margin | 73 | % | 74 | % | 72 | % | 74 | % | ||||||||
| Add back: | ||||||||||||||||
| Stock-based compensation | 466 | 289 | 1,748 | 1,639 | ||||||||||||
| Non-cash amortization of acquired | ||||||||||||||||
| intangible assets | 1,868 | 1,121 | 5,914 | 3,428 | ||||||||||||
| Non-GAAP recurring revenue gross profit | $ | 42,281 | $ | 33,964 | $ | 153,186 | $ | 124,934 | ||||||||
| Non-GAAP recurring revenue gross margin | 77 | % | 77 | % | 76 | % | 77 | % | ||||||||
| Non-GAAP operating expense reconciliation: | ||||||||||||||||
| Operating expenses | $ | 47,165 | $ | 39,094 | $ | 176,047 | $ | 146,090 | ||||||||
| Operating expenses, as a % of total | ||||||||||||||||
| revenue | 68 | % | 70 | % | 70 | % | 71 | % | ||||||||
| Subtract: | ||||||||||||||||
| Stock-based compensation | (7,046 | ) | (7,394 | ) | (29,548 | ) | (25,387 | ) | ||||||||
| Non-cash amortization of acquired | ||||||||||||||||
| intangible assets | (514 | ) | (490 | ) | (1,921 | ) | (1,797 | ) | ||||||||
| Patent litigation and settlement costs | (31 | ) | (29 | ) | (115 | ) | (115 | ) | ||||||||
| Acquisition-related costs | (1,875 | ) | (130 | ) | (2,769 | ) | (565 | ) | ||||||||
| Restructuring and other | (61 | ) | - | (1,189 | ) | (482 | ) | |||||||||
| Non-GAAP operating expenses | $ | 37,638 | $ | 31,051 | $ | 140,505 | $ | 117,744 | ||||||||
| Non-GAAP operating expenses, as a % | ||||||||||||||||
| of total revenue | 54 | % | 55 | % | 56 | % | 57 | % | ||||||||
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CALLIDUS SOFTWARE INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except for percentages)
(unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Non-GAAP operating income (loss) reconciliation: | ||||||||||||||||
| Operating loss | $ | (3,816 | ) | $ | (4,220 | ) | $ | (21,448 | ) | $ | (17,449 | ) | ||||
| Operating loss, as a % of total | ||||||||||||||||
| revenue | (5 | )% | (8 | )% | (8 | )% | (8 | )% | ||||||||
| Add back: | ||||||||||||||||
| Stock-based compensation | 8,083 | 8,214 | 33,635 | 29,123 | ||||||||||||
| Non-cash amortization of acquired | ||||||||||||||||
| intangible assets | 2,382 | 1,610 | 7,835 | 5,225 | ||||||||||||
| Patent litigation and settlement costs | 31 | 29 | 115 | 115 | ||||||||||||
| Acquisition-related costs | 1,875 | 130 | 2,769 | 565 | ||||||||||||
| Restructuring and other | 61 | - | 1,189 | 482 | ||||||||||||
| Non-GAAP operating income | $ | 8,616 | $ | 5,763 | $ | 24,095 | $ | 18,061 | ||||||||
| Non-GAAP operating income, as a % | ||||||||||||||||
| of total revenue | 12 | % | 10 | % | 10 | % | 9 | % | ||||||||
| Non-GAAP net income (loss) before provision (benefit) for income taxes reconciliation: | ||||||||||||||||
| Net loss before provision (benefit) for income taxes | $ | (3,445 | ) | $ | (4,424 | ) | $ | (20,493 | ) | $ | (17,838 | ) | ||||
| Net loss before provision (benefit) for income taxes, as a % of total | ||||||||||||||||
| revenue | (5 | )% | (8 | )% | (8 | )% | (9 | )% | ||||||||
| Add back: | ||||||||||||||||
| Stock-based compensation | 8,083 | 8,214 | 33,635 | 29,123 | ||||||||||||
| Non-cash amortization of acquired | ||||||||||||||||
| intangible assets | 2,382 | 1,610 | 7,835 | 5,225 | ||||||||||||
| Patent litigation and settlement costs | 31 | 29 | 115 | 115 | ||||||||||||
| Acquisition-related costs | 1,875 | 130 | 2,769 | 565 | ||||||||||||
| Restructuring and other | 61 | - | 1,189 | 482 | ||||||||||||
| Non-GAAP net income before provision (benefit) for income taxes | $ | 8,987 | $ | 5,559 | $ | 25,050 | $ | 17,672 | ||||||||
| Non-GAAP net income before provision (benefit) | ||||||||||||||||
| for income taxes, as a % of total revenue | 13 | % | 10 | % | 10 | % | 9 | % | ||||||||
| Cash taxes | $ | 557 | $ | 224 | $ | 1,277 | $ | 791 | ||||||||
| Weighted average shares - basic | 65,995 | 63,663 | 65,272 | 58,852 | ||||||||||||
| Weighted average shares - diluted | 67,768 | 65,637 | 67,212 | 60,910 | ||||||||||||
CALLIDUS SOFTWARE INC.
Non-GAAP Supplemental Financial Information
(In thousands, except for percentages)
(unaudited)
| Three Months Ended | Trailing Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| SaaS Billings | 2017 | 2016 | 2017 | 2016 | ||||||||||||
| SaaS revenue | $ | 54,565 | $ | 42,104 | $ | 198,206 | $ | 151,524 | ||||||||
| Add back: | ||||||||||||||||
| Increase in SaaS deferred revenue | 21,381 | 11,474 | 30,237 | 27,628 | ||||||||||||
| SaaS billings | $ | 75,946 | $ | 53,578 | $ | 228,443 | $ | 179,152 | ||||||||
| SaaS billings growth rate | 42 | % | 55 | % | 28 | % | 41 | % | ||||||||
| Normalized Billings | ||||||||||||||||
| SaaS billings | $ | 75,946 | $ | 53,578 | $ | 228,443 | $ | 179,152 | ||||||||
| Multi-year billings | 33 | 1,434 | 2,833 | 1,698 | ||||||||||||
| Remaining deferred revenue from acquisitions | (1,215 | ) | (814 | ) | (1,724 | ) | (1,450 | ) | ||||||||
| Normalized SaaS billings | $ | 74,764 | $ | 54,198 | $ | 229,552 | $ | 179,400 | ||||||||
| Normalized SaaS billings growth rate | 38 | % | 48 | % | 28 | % | 36 | % | ||||||||
10