Telos Corporation (NASDAQ: TLS), a leading provider of cyber, cloud
and enterprise security solutions for the world’s most
security-conscious organizations, today announced financial results
for the second quarter 2023.
“We executed effectively in the second quarter and delivered
results above the high end of our guidance range,” said John B.
Wood, chairman and CEO, Telos. “New business wins and management
cost actions, including the restructuring plan announced earlier
this year, enabled us to produce these results. We remain focused
on rebuilding and growing our backlog and core revenue base by
strengthening our business development operation and pipeline, and
aligning investments in our solutions portfolio to the demands of
the end markets and customers we know best.”
Second Quarter 2023 Financial Highlights |
|
2Q 2023 |
|
2Q 2022 |
|
(in millions, except per share data) |
Revenue |
$32.9 |
|
$55.8 |
Gross
Profit |
$12.4 |
|
$20.9 |
Gross
Margin |
37.6% |
|
37.5% |
GAAP Net
Loss |
$(8.0) |
|
$(14.2) |
Adjusted
Net (Loss)/Income 1 |
$(1.9) |
|
$2.8 |
EBITDA1 |
$(7.8) |
|
$(12.5) |
Adjusted
EBITDA1 |
$— |
|
$4.5 |
Adjusted
EBITDA Margin1 |
(0.1%) |
|
8.1% |
GAAP
EPS |
$(0.12) |
|
$(0.21) |
Adjusted
EPS 1 |
$(0.03) |
|
$0.04 |
Weighted-average Shares of Common Stock Outstanding |
69.4 |
|
67.9 |
Cash Flow
from Operations |
$(4.1) |
|
$7.9 |
Free Cash Flow 1 |
$(8.6) |
|
$5.4 |
1 Adjusted EBITDA,
Adjusted EBITDA Margin, EBITDA, Adjusted Net (Loss)/Income,
Adjusted EPS and Free Cash Flow are non-GAAP financial measures.
Refer to "Non-GAAP Financial Measures" below. |
|
|
|
|
Selected Second Quarter Business
Highlights:
- Received Xacta® renewals with several prominent customers,
including the Central Intelligence Agency, the U.S. Department of
the Treasury, the U.S. Department of the Interior, the Office of
Naval Intelligence, the National Archives and Records
Administration, the U.S. Environmental Protection Agency, Oracle
and SAP.
- Received new Xacta orders from the National Aeronautics and
Space Administration, the Virginia Department of Education and the
National Endowment for the Arts.
- Received two new Automated Message Handling System (AMHS)
orders - one from a foreign government customer and one from a
federal government customer. Also secured several contract
renewals, including with the Drug Enforcement Administration and
the U.S. Department of the Treasury.
- Received a new contract award for Telos Advanced Cyber
Analytics (Telos ACA) software and services from a federal
government customer.
- Achieved key operational milestones on the TSA PreCheck®
program:
- The official Telos PreCheck website is
operational:(https://tsaprecheckbytelos.tsa.dhs.gov/).
- The Company has seven TSA PreCheck enrollment sites open across
four states.
Financial
Outlook: |
|
3Q 2023 |
|
Full Year 2023 |
|
|
|
Prior |
|
Updated |
Revenue |
$30 - $34 Million |
|
$115 - $140 Million |
|
$122 - $137 Million |
YoY Growth |
(53%) - (47%) |
|
(47%) - (35%) |
|
(44%) - (37%) |
Adjusted EBITDA1 |
($8) - ($6) Million |
|
($27) - ($17) Million |
|
($19) - ($14) Million |
1Adjusted EBITDA
is a non-GAAP financial measure. Refer to "Non-GAAP Financial
Measures" below. |
|
This guidance consists of forward-looking statements and actual
results may differ materially. Refer to the Forward-Looking
Statements section below for information on the factors that could
cause the Company’s actual results to differ materially from these
forward-looking statements. Adjusted EBITDA is a non-GAAP financial
measure. The Company has not provided the most directly comparable
GAAP measure to this forward-looking non-GAAP financial measure
because certain items are out of the Company’s control or cannot be
reasonably predicted. Accordingly, a reconciliation for
forward-looking Adjusted EBITDA is not available without
unreasonable effort.
Webcast Information Telos will host a live
webcast to discuss its second quarter 2023 financial results
at 8:30 a.m. Eastern Time today, August 9, 2023. To
access the webcast, visit
https://register.vevent.com/register/BIdff7ad92777d40cea48d25dcc333e744.
Related presentation materials will be made available on the
Investors section of the Company’s website
at https://investors.telos.com. In addition, an archived
webcast will be available approximately two hours after the
conclusion of the live event on the Investors section of the
Company’s website.
Forward-Looking Statements This press release
contains forward-looking statements which are made under the safe
harbor provisions of the federal securities laws. These statements
are based on the Company’s management’s current beliefs,
expectations and assumptions about future events, conditions, and
results and on information currently available to them. By their
nature, forward-looking statements involve risks and uncertainties
because they relate to events and depend on circumstances that may
or may not occur in the future. The Company believes that these
risks and uncertainties include, but are not limited to, those
described under the captions “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” set forth from time to time in the Company’s filings
and reports with the U.S. Securities and Exchange Commission
(SEC), including its Annual Report on Form 10-K for the year
ended December 31, 2022 and its Quarterly Reports on Form
10-Q, as well as future filings and reports by the Company, copies
of which are available at https://investors.telos.com and on
the SEC’s website at www.sec.gov.
Although the Company bases these forward-looking statements on
assumptions that its management believes are reasonable when made,
the Company cautions the reader that forward-looking statements are
not guarantees of future performance and that the Company’s actual
results of operations, financial condition and liquidity, and
industry developments may differ materially from statements made in
or suggested by the forward-looking statements contained in this
release. Given these risks, uncertainties, and other factors, many
of which are beyond its control, the Company cautions the reader
not to place undue reliance on these forward-looking statements.
Any forward-looking statement speaks only as of the date of such
statement and, except as required by law, the Company undertakes no
obligation to update any forward-looking statement publicly, or to
revise any forward-looking statement to reflect events or
developments occurring after the date of the statement, even if new
information becomes available in the future. Comparisons of results
for current and any prior periods are not intended to express any
future trends or indications of future performance, unless
specifically expressed as such, and should only be viewed as
historical data.
Non-GAAP Financial MeasuresIn addition to
Telos' results determined in accordance with U.S. GAAP, Telos
believes the non-GAAP financial measures of EBITDA, Adjusted
EBITDA, EBITDA Margin, Adjusted EBITDA Margin, Adjusted Net
Income/(Loss), Adjusted Earnings Per Share ("EPS") and Free Cash
Flow are useful in evaluating operating performance. Telos believes
that this non-GAAP financial information, when taken collectively
with GAAP results, may be helpful to readers of the financial
statements because it provides consistency and comparability with
past financial performance and assists in comparisons with other
companies, some of which use similar non-GAAP financial information
to supplement their GAAP results. The non-GAAP financial
information is presented for supplemental informational purposes
only, should not be considered a substitute for financial
information presented in accordance with GAAP, and may be different
from similarly-titled non-GAAP measures used by other companies. A
reconciliation is provided below for each of these non-GAAP
financial measures to the most directly comparable financial
measure stated in accordance with GAAP.
The Company uses the following non-GAAP financial measures (a)
to understand and evaluate Telos’ core operating performance and
trends, (b) to prepare and approve the Company’s annual budget, (c)
to develop short-term and long-term operating plans, and (d) to
evaluate the performance of certain management personnel when
determining incentive compensation. Telos believes these non-GAAP
financial measures facilitate the comparison of the Company’s
operating performance on a consistent basis between periods by
excluding certain items that may, or could, have a
disproportionately positive or negative impact on the Company’s
results of operations in any particular period. When viewed in
combination with the Company’s results prepared in accordance with
GAAP, these non-GAAP financial measures help provide a broader
picture of factors and trends affecting the Company’s results of
operations.
EBITDA, Adjusted EBITDA, EBITDA Margin, Adjusted EBITDA Margin,
Adjusted Net Income/(Loss), Adjusted EPS and Free Cash Flow are
supplemental measures of operating performance that are not made
under GAAP and do not represent, and should not be considered as an
alternative to, Net Income/(Loss), Net Income/(Loss) Margin,
Earnings per Share, or Net Cash Flows provided by/(used in)
operating activities, as determined by GAAP.
The Company defines EBITDA as net (loss)/income, adjusted for
non-operating expense/(income), interest expense, (benefit
from)/provision for income taxes, and depreciation and
amortization. The Company defines Adjusted EBITDA as EBITDA,
adjusted for stock-based compensation expense and restructuring
expenses/(adjustments). The Company defines EBITDA Margin, as
EBITDA as a percentage of total revenue. The Company defines
Adjusted EBITDA Margin as Adjusted EBITDA as a percentage of total
revenue. The Company defines Adjusted Net Income/(Loss) as net
income/(loss), adjusted for non-operating expense/(income),
stock-based compensation expense and restructuring
expenses/(adjustments). The Company defines Adjusted EPS as
Adjusted Net Income/(Loss) divided by the weighted-average number
of common shares outstanding for the period. Free Cash Flow is
defined as net cash provided by/(used in) operating activities,
less purchases of property and equipment, and capitalized software
development costs.
EBITDA, Adjusted EBITDA, EBITDA Margin, Adjusted EBITDA Margin,
Adjusted Net Income/(Loss), Adjusted EPS and Free Cash Flow each
has limitations as an analytical tool, and you should not consider
any of them in isolation, or as a substitute for analysis of
results as reported under GAAP. Among other limitations, EBITDA,
Adjusted EBITDA, EBITDA Margin, Adjusted EBITDA Margin, Adjusted
Net Income/(Loss), Adjusted EPS and Free Cash Flow each does not
reflect our cash expenditures, or future requirements, for capital
expenditures or contractual commitments, does not reflect the
impact of certain cash charges resulting from matters considered
not to be indicative of ongoing operations, and does not reflect
income tax expense or benefit. Other companies in the Company’s
industry may calculate Adjusted EBITDA, Adjusted EBITDA Margin,
Adjusted Net Income/(Loss), Adjusted EPS and Free Cash Flow
differently than Telos does, which limits its usefulness as a
comparative measure. Because of these limitations, neither EBITDA,
Adjusted EBITDA, EBITDA Margin, Adjusted EBITDA Margin, Adjusted
Net Income/(Loss), Adjusted EPS nor Free Cash Flow should be
considered as a replacement for Net Income/ (Loss), Net
Income/(Loss) Margin, Earnings per Share, or Net Cash Flows
Provided by Operating Activities, as determined by GAAP, or as a
measure of profitability. Telos compensates for these limitations
by relying primarily on the Company’s GAAP results and using
non-GAAP measures only for supplemental purposes.
About Telos CorporationTelos
Corporation (NASDAQ: TLS) empowers and protects the world’s
most security-conscious organizations with solutions for continuous
security assurance of individuals, systems, and information. Telos’
offerings include cybersecurity solutions for IT risk management
and information security; cloud security solutions to protect
cloud-based assets and enable continuous compliance with industry
and government security standards; and enterprise security
solutions for identity and access management, secure mobility,
organizational messaging, and network management and defense. The
Company serves commercial enterprises, regulated industries and
government customers around the world.
Media:
media@telos.com
Investors:
InvestorRelations@telos.com
TELOS CORPORATIONCONSOLIDATED STATEMENTS
OF OPERATIONS(Unaudited) |
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
June 30, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
|
|
|
|
|
|
|
|
|
(in thousands, except per share amounts) |
Revenue – services |
$ |
28,947 |
|
|
$ |
50,270 |
|
|
$ |
60,481 |
|
|
$ |
98,378 |
|
Revenue – products |
|
3,964 |
|
|
$ |
5,521 |
|
|
|
7,652 |
|
|
$ |
7,573 |
|
Total revenue |
|
32,911 |
|
|
|
55,791 |
|
|
|
68,133 |
|
|
|
105,951 |
|
Cost of sales – services |
|
19,008 |
|
|
|
31,436 |
|
|
|
38,276 |
|
|
|
61,167 |
|
Cost of sales – products |
|
1,544 |
|
|
|
3,426 |
|
|
|
4,016 |
|
|
|
4,984 |
|
Total cost of sales |
|
20,552 |
|
|
|
34,862 |
|
|
|
42,292 |
|
|
|
66,151 |
|
Gross profit |
|
12,359 |
|
|
|
20,929 |
|
|
|
25,841 |
|
|
|
39,800 |
|
Selling, general and
administrative expenses |
|
|
|
|
|
|
|
Sales and marketing |
|
1,793 |
|
|
|
4,741 |
|
|
|
3,436 |
|
|
|
9,993 |
|
Research and development |
|
2,646 |
|
|
|
4,489 |
|
|
|
5,479 |
|
|
|
9,919 |
|
General and administrative |
|
17,387 |
|
|
|
25,735 |
|
|
|
39,363 |
|
|
|
50,291 |
|
Total selling, general and
administrative expenses |
|
21,826 |
|
|
|
34,965 |
|
|
|
48,278 |
|
|
|
70,203 |
|
Operating loss |
|
(9,467 |
) |
|
|
(14,036 |
) |
|
|
(22,437 |
) |
|
|
(30,403 |
) |
Other income |
|
1,649 |
|
|
|
118 |
|
|
|
4,145 |
|
|
|
130 |
|
Interest expense |
|
(184 |
) |
|
|
(187 |
) |
|
|
(433 |
) |
|
|
(377 |
) |
Loss before income taxes |
|
(8,002 |
) |
|
|
(14,105 |
) |
|
|
(18,725 |
) |
|
|
(30,650 |
) |
Provision for income taxes |
|
(22 |
) |
|
|
(54 |
) |
|
|
(45 |
) |
|
|
(125 |
) |
Net loss |
$ |
(8,024 |
) |
|
$ |
(14,159 |
) |
|
$ |
(18,770 |
) |
|
$ |
(30,775 |
) |
|
|
|
|
|
|
|
|
Net loss per share: |
|
|
|
|
|
|
|
Basic |
$ |
(0.12 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.27 |
) |
|
$ |
(0.45 |
) |
Diluted |
$ |
(0.12 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.27 |
) |
|
$ |
(0.45 |
) |
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
Basic |
|
69,424 |
|
|
|
67,876 |
|
|
|
68,804 |
|
|
|
67,717 |
|
Diluted |
|
69,424 |
|
|
|
67,876 |
|
|
|
68,804 |
|
|
|
67,717 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TELOS CORPORATIONCONSOLIDATED BALANCE
SHEETS(Unaudited) |
|
|
June 30, 2023 |
|
December 31, 2022 |
|
|
|
|
|
(in thousands, except per share amount and share data) |
Assets: |
|
|
|
Cash and cash equivalents |
$ |
103,447 |
|
|
$ |
119,305 |
|
Accounts receivable, net |
|
34,290 |
|
|
|
40,069 |
|
Inventories, net |
|
1,767 |
|
|
|
2,877 |
|
Prepaid expenses |
|
7,321 |
|
|
|
4,819 |
|
Other current assets |
|
1,850 |
|
|
|
893 |
|
Total current assets |
|
148,675 |
|
|
|
167,963 |
|
Property and equipment,
net |
|
3,842 |
|
|
|
4,787 |
|
Finance lease right-of-use
assets, net |
|
7,222 |
|
|
|
7,832 |
|
Operating lease right-of-use
assets, net |
|
326 |
|
|
|
341 |
|
Goodwill |
|
17,922 |
|
|
|
17,922 |
|
Intangible assets, net |
|
37,814 |
|
|
|
37,415 |
|
Other assets |
|
1,059 |
|
|
|
1,137 |
|
Total assets |
$ |
216,860 |
|
|
$ |
237,397 |
|
Liabilities and
Stockholders' Equity |
|
|
|
Liabilities: |
|
|
|
Accounts payable and other accrued liabilities |
$ |
16,506 |
|
|
$ |
22,551 |
|
Accrued compensation and benefits |
|
9,862 |
|
|
|
8,388 |
|
Contract liabilities |
|
6,138 |
|
|
|
6,444 |
|
Finance lease obligations – current portion |
|
1,660 |
|
|
|
1,592 |
|
Operating lease obligations – current portion |
|
350 |
|
|
|
361 |
|
Other financing obligations – current portion |
|
— |
|
|
|
1,247 |
|
Other current liabilities |
|
3,317 |
|
|
|
4,919 |
|
Total current liabilities |
|
37,833 |
|
|
|
45,502 |
|
Finance lease obligations – non-current portion |
|
10,406 |
|
|
|
11,248 |
|
Operating lease liabilities – non-current portion |
|
— |
|
|
|
27 |
|
Other financing obligations – non-current portion |
|
— |
|
|
|
7,211 |
|
Deferred income taxes |
|
782 |
|
|
|
758 |
|
Other liabilities |
|
303 |
|
|
|
297 |
|
Total liabilities |
|
49,324 |
|
|
|
65,043 |
|
Commitments and
contingencies |
|
|
|
Stockholders’ equity: |
|
|
|
Common stock, $0.001 par
value, 250,000,000 shares authorized, 69,466,777 shares and
67,431,632 shares issued and outstanding as of June 30, 2023
and December 31, 2022, respectively |
|
108 |
|
|
|
106 |
|
Additional paid-in capital |
|
426,656 |
|
|
|
412,708 |
|
Accumulated other comprehensive income |
|
(53 |
) |
|
|
(55 |
) |
Accumulated deficit |
|
(259,175 |
) |
|
|
(240,405 |
) |
Total stockholders’ equity |
|
167,536 |
|
|
|
172,354 |
|
Total liabilities and stockholders’ equity |
$ |
216,860 |
|
|
$ |
237,397 |
|
|
TELOS CORPORATIONCONSOLIDATED STATEMENTS
OF CASH FLOWS(Unaudited) |
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
|
|
|
|
|
|
|
|
|
(in thousands) |
Cash flows from operating
activities: |
|
|
|
|
|
|
|
Net loss |
$ |
(8,024 |
) |
|
$ |
(14,159 |
) |
|
$ |
(18,770 |
) |
|
$ |
(30,775 |
) |
Adjustments to reconcile net loss to cash (used in)/provided by
operating activities: |
|
|
|
|
|
|
|
Stock-based compensation |
|
7,745 |
|
|
|
17,076 |
|
|
|
17,244 |
|
|
|
33,007 |
|
Depreciation and amortization |
|
1,696 |
|
|
|
1,505 |
|
|
|
3,121 |
|
|
|
2,910 |
|
Deferred income tax provision |
|
12 |
|
|
|
13 |
|
|
|
24 |
|
|
|
25 |
|
Accretion of discount in acquisition holdback |
|
— |
|
|
|
11 |
|
|
|
2 |
|
|
|
23 |
|
Loss on disposal of fixed assets |
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
Provision for doubtful accounts |
|
28 |
|
|
|
(29 |
) |
|
|
117 |
|
|
|
66 |
|
Amortization of debt issuance costs |
|
18 |
|
|
|
— |
|
|
|
35 |
|
|
|
— |
|
Gain on early extinguishment of other financing obligations |
|
— |
|
|
|
— |
|
|
|
(1,427 |
) |
|
|
— |
|
Changes in other operating assets and liabilities: |
|
|
|
|
|
|
|
Accounts receivable |
|
383 |
|
|
|
7,088 |
|
|
|
5,662 |
|
|
|
9,102 |
|
Inventories |
|
(137 |
) |
|
|
(1,533 |
) |
|
|
1,111 |
|
|
|
(2,383 |
) |
Prepaid expenses, other current assets, other assets |
|
(2,518 |
) |
|
|
239 |
|
|
|
(3,445 |
) |
|
|
(3,324 |
) |
Accounts payable and other accrued payables |
|
(1,766 |
) |
|
|
(107 |
) |
|
|
(6,255 |
) |
|
|
567 |
|
Accrued compensation and benefits |
|
129 |
|
|
|
(76 |
) |
|
|
(235 |
) |
|
|
419 |
|
Contract liabilities |
|
(1,065 |
) |
|
|
(2,237 |
) |
|
|
(307 |
) |
|
|
(1,582 |
) |
Other current liabilities |
|
(614 |
) |
|
|
91 |
|
|
|
(1,091 |
) |
|
|
76 |
|
Net cash (used in)/provided by
operating activities |
|
(4,113 |
) |
|
|
7,883 |
|
|
|
(4,213 |
) |
|
|
8,132 |
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
Capitalized software development costs |
|
(4,398 |
) |
|
|
(2,339 |
) |
|
|
(8,198 |
) |
|
|
(5,134 |
) |
Purchases of property and equipment |
|
(47 |
) |
|
|
(95 |
) |
|
|
(270 |
) |
|
|
(641 |
) |
Net cash used in investing
activities |
|
(4,445 |
) |
|
|
(2,434 |
) |
|
|
(8,468 |
) |
|
|
(5,775 |
) |
Cash flows from financing
activities: |
|
|
|
|
|
|
|
Payments under finance lease obligations |
|
(392 |
) |
|
|
(359 |
) |
|
|
(775 |
) |
|
|
(710 |
) |
Payment of tax withholding related to net share settlement of
equity awards |
|
(64 |
) |
|
|
— |
|
|
|
(1,584 |
) |
|
|
(2,886 |
) |
Repurchase of common stock |
|
— |
|
|
|
(2,603 |
) |
|
|
(139 |
) |
|
|
(2,603 |
) |
Payment of DFT holdback amount |
|
— |
|
|
|
— |
|
|
|
(564 |
) |
|
|
— |
|
Payments for debt issuance costs |
|
— |
|
|
|
— |
|
|
|
(114 |
) |
|
|
— |
|
Net cash used in financing
activities |
|
(456 |
) |
|
|
(2,962 |
) |
|
|
(3,176 |
) |
|
|
(6,199 |
) |
Net change in cash, cash equivalents, and restricted cash |
|
(9,014 |
) |
|
|
2,487 |
|
|
|
(15,857 |
) |
|
|
(3,842 |
) |
Cash, cash equivalents, and
restricted cash, beginning of period |
|
112,595 |
|
|
|
120,233 |
|
|
|
119,438 |
|
|
|
126,562 |
|
Cash, cash equivalents, and
restricted cash, end of period |
$ |
103,581 |
|
|
$ |
122,720 |
|
|
$ |
103,581 |
|
|
$ |
122,720 |
|
|
Non-GAAP Financial Measures (Unaudited) |
|
Reconciliation of Net Loss to EBITDA, Adjusted EBITDA,
EBITDA Margin and Adjusted EBITDA Margin |
|
For the Three Months Ended |
|
For the Six Months Ended |
|
June 30, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
|
Amount |
|
Margin |
|
Amount |
|
Margin |
|
Amount |
|
Margin |
|
Amount |
|
Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
Net loss |
$ |
(8,024 |
) |
|
(24.4)% |
|
$ |
(14,159 |
) |
|
(25.4)% |
|
$ |
(18,770 |
) |
|
(27.5)% |
|
$ |
(30,775 |
) |
|
(29.0)% |
Other income |
|
(1,649 |
) |
|
(5.0)% |
|
|
(118 |
) |
|
(0.2)% |
|
|
(4,145 |
) |
|
(6.1)% |
|
|
(130 |
) |
|
(0.1)% |
Interest expense |
|
184 |
|
|
0.5% |
|
|
187 |
|
|
0.3% |
|
|
433 |
|
|
0.6% |
|
|
377 |
|
|
0.4% |
Provision for income taxes |
|
22 |
|
|
0.1% |
|
|
54 |
|
|
0.1% |
|
|
45 |
|
|
0.1% |
|
|
125 |
|
|
0.1% |
Depreciation and amortization |
|
1,696 |
|
|
5.2% |
|
|
1,505 |
|
|
2.7% |
|
|
3,121 |
|
|
4.5% |
|
|
2,910 |
|
|
2.7% |
EBITDA (Non-GAAP) |
|
(7,771 |
) |
|
(23.6)% |
|
|
(12,531 |
) |
|
(22.5)% |
|
|
(19,316 |
) |
|
(28.4)% |
|
|
(27,493 |
) |
|
(25.9)% |
Stock-based compensation expense (1) |
|
7,745 |
|
|
23.5% |
|
|
17,076 |
|
|
30.6% |
|
|
17,244 |
|
|
25.3% |
|
|
33,007 |
|
|
31.1% |
Restructuring expenses/(adjustments) (2) |
|
(3 |
) |
|
—% |
|
|
— |
|
|
—% |
|
|
1,197 |
|
|
1.8% |
|
|
— |
|
|
—% |
Adjusted EBITDA
(Non-GAAP) |
$ |
(29 |
) |
|
(0.1)% |
|
$ |
4,545 |
|
|
8.1% |
|
$ |
(875 |
) |
|
(1.3)% |
|
$ |
5,514 |
|
|
5.2% |
|
(1) The
stock-based compensation adjustment to EBITDA is made up of
stock-based compensation expense for the awarded restricted stock
units (“RSUs”), performance-based restricted stock units (“PSUs”)
and stock options, and of other sources. Stock-based compensation
expense for the awarded RSUs, PSUs and stock options was $5.7
million and $13.6 million for the three and six months ended
June 30, 2023, respectively, and $16.4 million and $30.7
million for the three and six months ended June 30, 2022,
respectively. Stock-based compensation from other sources was $2.1
million and $3.7 million for the three and six months ended June
30, 2023, respectively, and $0.7 million and $2.3 million for the
three and six months ended June 30, 2022, respectively. The other
sources of stock-based compensation consist of accrued
compensation, which the Company intends to settle in shares of the
Company's common stock. However, it is the Company’s discretion
whether this compensation will ultimately be paid in stock or cash.
The Company has the right to dictate the form of these payments up
until the date at which they are paid. Any change to the expected
payment form would result in out-of-quarter adjustments to this add
back to Adjusted EBITDA. |
|
(2) The
restructuring expenses/(adjustments) to EBITDA include severance
and other related benefit costs (including outplacement services
and continuing health insurance coverage), external consulting and
advisory fees related to implementing the restructuring plan. |
|
Reconciliation of Net Loss to Non-GAAP Adjusted Net
(Loss)/Income and Adjusted EPS |
|
For the Three Months Ended |
|
For the Six Months Ended |
|
June 30, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
|
AdjustedNet (Loss)/Income |
|
Adjusted Earnings Per Share |
|
AdjustedNet (Loss)/Income |
|
Adjusted Earnings Per Share |
|
AdjustedNet (Loss)/Income |
|
Adjusted Earnings Per Share |
|
AdjustedNet (Loss)/Income |
|
Adjusted Earnings Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except per share data) |
Net loss |
$ |
(8,024 |
) |
|
$ |
(0.12 |
) |
|
$ |
(14,159 |
) |
|
$ |
(0.21 |
) |
|
$ |
(18,770 |
) |
|
$ |
(0.27 |
) |
|
$ |
(30,775 |
) |
|
$ |
(0.45 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income |
|
(1,649 |
) |
|
|
(0.02 |
) |
|
|
(118 |
) |
|
|
— |
|
|
|
(4,145 |
) |
|
|
(0.06 |
) |
|
|
(130 |
) |
|
|
— |
|
Stock-based compensation expense (1) |
|
7,745 |
|
|
|
0.11 |
|
|
|
17,076 |
|
|
|
0.25 |
|
|
|
17,244 |
|
|
|
0.25 |
|
|
|
33,007 |
|
|
|
0.48 |
|
Restructuring expenses/(adjustments) (2) |
|
(3 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,197 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
Adjusted net (loss)/income
(Non-GAAP) |
$ |
(1,931 |
) |
|
$ |
(0.03 |
) |
|
$ |
2,799 |
|
|
$ |
0.04 |
|
|
$ |
(4,474 |
) |
|
$ |
(0.07 |
) |
|
$ |
2,102 |
|
|
$ |
0.03 |
|
Weighted-average shares of
common stock outstanding, basic |
|
69,424 |
|
|
|
|
|
67,876 |
|
|
|
|
|
68,804 |
|
|
|
|
|
67,717 |
|
|
|
|
(1) The
stock-based compensation adjustment to Net (Loss)/Income is made up
of stock-based compensation expense for the awarded RSUs, PSUs and
stock options, and of other sources. Stock-based compensation
expense for the awarded RSUs, PSUs and stock options was $5.7
million and $13.6 million for the three and six months ended
June 30, 2023, respectively, and $16.4 million and $30.7
million for the three and six months ended June 30, 2022,
respectively. Stock-based compensation from other sources was $2.1
million and $3.7 million for the three and six months ended
June 30, 2023, respectively, and $0.7 million and $2.3 million
for the three and six months ended June 30, 2022, respectively. The
other sources of stock-based compensation consist of accrued
compensation, which the Company intends to settle in shares of the
Company's common stock. However, it is the Company’s discretion
whether this compensation will ultimately be paid in stock or cash.
The Company has the right to dictate the form of these payments up
until the date at which they are paid. Any change to the expected
payment form would result in out-of-quarter adjustments to this add
back to Adjusted Net (Loss)/Income. |
|
(2) The
restructuring expenses/(adjustments) to net loss include severance
and other related benefit costs (including outplacement services
and continuing health insurance coverage), external consulting and
advisory fees related to implementing the restructuring plan. |
|
Free Cash
Flow |
|
For the Three Months Ended |
|
For the Six Months Ended |
|
June 30, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
|
|
|
|
|
|
|
|
|
(in thousands) |
Net cash (used in)/provided by operating activities |
$ |
(4,113 |
) |
|
$ |
7,883 |
|
|
$ |
(4,213 |
) |
|
$ |
8,132 |
|
Adjustments: |
|
|
|
|
|
|
|
Purchases of property and equipment |
|
(47 |
) |
|
|
(95 |
) |
|
|
(270 |
) |
|
|
(641 |
) |
Capitalized software development costs |
|
(4,398 |
) |
|
|
(2,339 |
) |
|
|
(8,198 |
) |
|
|
(5,134 |
) |
Free cash flow (Non-GAAP) |
$ |
(8,558 |
) |
|
$ |
5,449 |
|
|
$ |
(12,681 |
) |
|
$ |
2,357 |
|
Grafico Azioni Telos (NASDAQ:TLS)
Storico
Da Ott 2024 a Nov 2024
Grafico Azioni Telos (NASDAQ:TLS)
Storico
Da Nov 2023 a Nov 2024