Total revenue of $16.4 million increases 23%
year-over-year
Amber Road, Inc. (NYSE: AMBR), a leading provider of global
trade management (GTM) solutions, today announced its financial
results for the quarter ended September 30, 2014.
Jim Preuninger, Chief Executive Officer of Amber Road, stated,
“I am pleased with our third quarter results. We witnessed demand
across all of our market segments as multi-national companies, both
large and small, are facing mounting complexity and escalating
costs related to global trade. We will continue to execute on our
growth strategies to drive awareness and adoption of our highly
differentiated offering across our large and growing market, and we
are well positioned for long term success.”
Third Quarter 2014 Financial Highlights
Revenue
- Total revenue was $16.4 million, an
increase of 23% from the comparable period in 2013.
- Subscription revenue was $11.4 million,
an increase of 16% from the comparable period in 2013.
- Professional Services revenue was $5.0
million, an increase of 40% from the comparable period in
2013.
Operating Loss
- GAAP operating loss was $(2.0) million,
compared to $(3.3) million in the comparable period in 2013.
- Non-GAAP adjusted operating income
(loss) which excludes stock-based compensation, puttable stock
compensation, changes in the fair value of contingent consideration
liability and severance costs was $0.1 million, compared to $(0.7)
million in the comparable period in 2013, which excludes
stock-based compensation, restricted stock expense, puttable stock
compensation, change in fair value of contingent consideration
liability and warrant expense.
Net Loss attributable to common stockholders
- GAAP net loss attributable to common
stockholders was $(2.2) million, compared to $(4.7) million for the
comparable period in 2013.
- GAAP basic and diluted net loss per
common share was $(0.09), compared to $(1.25) for the comparable
period in 2013, based on 25.3 million and 3.8 million basic and
diluted weighted average common shares outstanding,
respectively.
- Non-GAAP adjusted net loss was $(0.1)
million, compared to $(0.9) million in the comparable period in
2013.
- Non-GAAP adjusted net loss per common
share was $0.00, compared to $(0.24) for the comparable period in
2013, based on 25.3 million and 3.8 million basic and diluted
weighted average common shares outstanding, respectively.
Adjusted EBITDA
- Adjusted EBITDA was $1.4 million for
the three months ended September 30, 2014 and $0.2 million in
the comparable period in 2013.
Balance Sheet
- Cash and cash equivalents at
September 30, 2014 totaled $40.6 million, compared with $5.1
million at December 31, 2013.
- Cash used in operating activities was
$(9.1) million for the first nine months of 2014, compared to
$(2.9) million in the comparable period in 2013.
A reconciliation of GAAP operating and net loss to Non-GAAP
adjusted operating income (loss) and net loss and of GAAP net loss
to Adjusted EBITDA has been provided in the financial statement
tables included in this press release. An explanation of these
measures is also included below under the heading “Non-GAAP
Financial Measures.”
Third Quarter 2014 and Recent Business Highlights
- Announced that the Acteon Group, a
leading global integrated subsea services provider, has chosen
Amber Road to automate and standardize restricted party screening
across all of its worldwide branded services. Previously, the
individual Acteon branded services tracked and managed their
trading partners independently and mostly manually. But with
increasingly complex regulations and sanctions being imposed by
multiple authorities around the world, the need for a reliable,
automated solution to track regulations, evaluate trading partners,
and ensure a standardized compliancy process for the entire group
became acute.
- Announced its proprietary Global
Knowledge® Update Process achieved ISO 9001:2008 recertification.
The ISO 9001:2008 is an internationally recognized set of standards
for quality management systems developed and published by the
International Organization for Standardization (ISO). To achieve
recertification, Amber Road demonstrated its quality management
system for its Global Knowledge® Update Process as consistently
providing global trade content that meets customer and applicable
statutory and regulatory requirements; enhances customer
satisfaction; and includes continuous process improvement
strategies.
Business Outlook
Based on information available as of November 6, 2014,
Amber Road is issuing guidance for the fourth quarter and full year
2014 as indicated below:
Fourth Quarter 2014:
- Total revenue is expected to be in the
range of $16.4 million to $16.8 million.
- Non-GAAP adjusted operating loss is
expected to be in the range of ($1.4) million to ($1.9)
million.
- Non-GAAP adjusted net loss per common
share is expected to be in the range of ($0.07) to ($0.09). This
assumes 25.3 million basic shares outstanding.
Full Year 2014:
- Total revenue is expected to be in the
range of $63.6 million to $64.0 million.
- Non-GAAP adjusted operating loss is
expected to be in the range of ($3.7) million to ($4.2)
million.
- Non-GAAP adjusted net loss per common
share is expected to be in the range of ($0.18) to ($0.20). This
assumes 25.3 million basic shares outstanding.
Expectations of non-GAAP adjusted loss from operations and
non-GAAP adjusted loss per common share for the fourth quarter
exclude stock-based compensation, puttable stock compensation and
changes in the fair value of contingent consideration liability.
Expectations of non-GAAP adjusted loss from operations and non-GAAP
adjusted loss per common share for the full year 2014 exclude
stock-based compensation, restricted stock expense, compensation
expense related to loan forgiveness, puttable stock compensation,
changes in the fair value of contingent consideration liability,
warrant expense and severance costs.
Conference Call Information
Amber Road will host a conference call on Thursday,
November 6, 2014 at 5:00 p.m. Eastern Time (ET) to discuss the
company’s third quarter financial results and its business outlook.
To access this call, dial 888-337-8198 (domestic) or 719-325-2215
(international). The conference ID is 7388277.
Additionally, a live webcast of the conference call will be
available in the “Investor Relations” section of the Company’s web
site at www.AmberRoad.com.
Following the conference call, a replay will be available at
877-870-5176 (domestic) or 858-384-5517 (international) from
November 6, 2014, 8:00pm EST to November 13, 2014, 11:59pm EST. The
replay pass code is 7388277. An archived webcast of this conference
call will also be available in the “Investor Relations” section of
the Company’s web site at www.AmberRoad.com.
About Amber Road
Amber Road’s (NYSE: AMBR) mission is to dramatically change the
way companies conduct global trade. As a leading provider of cloud
based global trade management (GTM) solutions, we automate import
and export processes to enable goods to flow across international
borders in the most efficient, compliant and profitable way. Our
solution combines enterprise-class software, trade content sourced
from government agencies and transportation providers in 139
countries, and a global supply chain network connecting our
customers with their trading partners, including suppliers, freight
forwarders, customs brokers and transportation carriers. We deliver
our GTM solution using a Software-as-a-Service (SaaS) model and
leverage a highly flexible technology framework to quickly and
efficiently meet our customers’ unique requirements around the
world. For more information, please visit www.AmberRoad.com, email
Solutions@AmberRoad.com or call 201-935-8588.
Non-GAAP Financial Measures
To provide investors with additional information regarding our
financial results, Amber Road has provided within this press
release non-GAAP adjusted operating and net loss and adjusted
EBITDA, financial measures that are not calculated in accordance
with generally accepted accounting principles, or GAAP. Provided
below is a reconciliation of GAAP operating and net loss to
non-GAAP adjusted operating and net loss, and net loss to adjusted
EBITDA. EBITDA consists of net loss plus depreciation and
amortization, interest expense (income) and income tax expense.
Adjusted EBITDA consists of EBITDA plus stock-based compensation,
restricted stock expense, compensation expense related to loan
forgiveness, puttable stock compensation, changes in the fair value
of contingent consideration liability, warrant expense and
severance costs. Amber Road has included these non-GAAP measures in
this press release because it assists in comparing performance on a
consistent basis across reporting periods, as it removes from
operating results the impact of the company’s capital structure.
Amber Road believes these non-GAAP measures are useful to an
investor in evaluating its operating performance because they are
often used by the financial community to measure a company’s
operating performance without regard to items such as depreciation
and amortization, which can vary depending upon accounting methods
and the book value of assets, and to present a meaningful measure
of performance exclusive of its capital structure and the method by
which assets were acquired.
Amber Road’s use of these non-GAAP measures has limitations as
an analytical tool, and you should not consider it in isolation or
as a substitute for analysis of its results as reported under GAAP.
Some of these limitations are:
- although depreciation and amortization
are non-cash charges, the assets being depreciated and amortized
may have to be replaced in the future, and these non-GAAP measures
do not reflect cash capital expenditure requirements for such
replacements or for new capital expenditure requirements;
- these non-GAAP measures do not reflect
changes in, or cash requirements for, working capital needs;
- these non-GAAP measures do not reflect
the potentially dilutive impact of equity-based compensation;
- these non-GAAP measures do not reflect
interest or tax payments that may represent a reduction in cash
available; and
- other companies, including companies in
Amber Road’s industry, may calculate adjusted EBITDA differently,
which reduces its usefulness as a comparative measure.
Because of these and other limitations, you should consider
these non-GAAP measures together with other GAAP-based financial
performance measures, including various cash flow metrics, net loss
and other GAAP results. A reconciliation of GAAP operating and net
loss to non-GAAP adjusted operating and net loss, and adjusted
EBITDA has been provided in the financial statement tables included
in this press release.
Cautionary Language Concerning Forward-Looking
Statements
This press release contains forward-looking statements. These
statements identify substantial risks and uncertainties and relate
to future events or our future financial performance. In some
cases, you can identify forward-looking statements by terminology
such as “may,” “will,” “could,” “should,” “expect,” “intend,”
“plan,” “anticipate,” “believe,” “estimate,” “predict,”
“potential,” or “continue,” and similar expressions, whether in the
negative or affirmative. These statements are only predictions and
may be inaccurate. Actual events or results may differ materially.
In evaluating these statements, you should specifically consider
various factors, including the risks outlined in our filings with
the Securities and Exchange Commission (SEC), including, without
limitation, our periodic and current SEC reports. These factors may
cause our actual results to differ materially from any
forward-looking statement. Although we believe that the
expectations reflected in the forward-looking statements are
reasonable, our future results, levels of activity, performance or
achievements may differ from our expectations. Other than as
required by law, we do not undertake to update any of the
forward-looking statements after the date of this press release,
even though our situation may change in the future.
AMBER ROAD, INC. AND
SUBSIDIARIES
Condensed Consolidated Balance
Sheets
(Unaudited)
September 30,
December 31, 2014 2013 Assets
Cash and cash equivalents
$ 40,572,930 $ 5,147,735 Accounts receivable, net 12,727,913
11,017,671 Unbilled receivables 258,195 144,067 Deferred
commissions 3,128,933 2,983,400 Prepaid expenses and other current
assets 1,673,601 869,108 Deferred offering costs — 2,786,376
Total current assets 58,361,572 22,948,357 Property and
equipment, net 13,069,412 13,102,380 Goodwill 24,476,157 24,476,157
Other intangibles, net 1,058,903 1,201,034 Deferred commissions
6,538,518 7,066,512 Deposits and other assets 1,127,151
1,302,681 Total assets $ 104,631,713 $ 70,097,121
Liabilities and Stockholders’ Equity (Deficit)
Current liabilities: Current installments of obligations under
capital leases $ 1,293,314 $ 1,022,176 Accounts payable 883,874
2,568,161 Accrued expenses 6,655,256 9,081,554 Deferred revenue
25,438,165 26,115,001 Total current liabilities
34,270,609 38,786,892 Capital lease obligations, less current
portion 2,224,363 2,068,308 Deferred revenue, less current portion
1,639,421 4,641,631 Revolving credit facility — 6,978,525 Other
noncurrent liabilities 2,311,531 3,981,889 Total
liabilities 40,445,924 56,457,245 Commitments and
contingencies Total redeemable
convertible preferred stock and puttable common stock —
76,921,359 Stockholders’ equity (deficit):
Common stock, $0.001 par value at
September 30, 2014, no par value at December 31,2013. Authorized,
100,000,000 and 38,100,100 shares at September 30, 2014 andDecember
31, 2013, respectively; issued and outstanding 25,447,157 and
5,005,911shares at September 30, 2014 and December 31, 2013,
respectively
25,447 15,221,195 Additional paid-in-capital 171,489,117 —
Accumulated other comprehensive loss (544,320 ) (485,917 )
Accumulated deficit (106,784,455 ) (78,016,761 ) Total
stockholders’ equity (deficit) 64,185,789 (63,281,483 )
Total liabilities and stockholders’ equity (deficit) $ 104,631,713
$ 70,097,121
AMBER ROAD, INC. AND
SUBSIDIARIES
Condensed Consolidated Statements of
Operations
(Unaudited)
Three Months Ended
Nine Months Ended
September 30, September 30, 2014
2013 2014 2013
Revenue: Subscription $ 11,441,819 $ 9,827,099 $ 32,582,297 $
27,242,428 Professional services 4,981,001 3,558,641
14,638,476 9,677,762 Total revenue 16,422,820
13,385,740 47,220,773 36,920,190 Cost of
revenue (1): Cost of subscription revenue 3,778,873 3,314,294
10,775,454 9,504,416 Cost of professional services revenue
3,224,945 2,392,352 9,467,835 6,748,785
Total cost of revenue 7,003,818 5,706,646 20,243,289
16,253,201 Gross profit 9,419,002 7,679,094
26,977,484 20,666,989 Operating expenses (1):
Sales and marketing 4,717,795 4,103,382 14,680,287 11,868,510
Research and development 2,492,531 2,051,430 7,060,149 5,825,681
General and administrative 4,249,190 2,801,763 12,301,061 7,684,449
Restricted stock expense — 1,993,543 18,683,277
8,705,754 Total operating expenses 11,459,516
10,950,118 52,724,774 34,084,394 Loss from
operations (2,040,514 ) (3,271,024 ) (25,747,290 ) (13,417,405 )
Interest income 1,615 211 1,919 18,239 Interest expense (48,546 )
(51,210 ) (217,440 ) (75,403 ) Loss before income taxes (2,087,445
) (3,322,023 ) (25,962,811 ) (13,474,569 ) Income tax expense
150,901 169,472 400,450 412,040 Net
loss (2,238,346 ) (3,491,495 ) (26,363,261 ) (13,886,609 )
Accretion of redeemable convertible
preferred stock and puttable common stock
— (1,212,764 ) (2,416,505 ) (3,638,292 ) Net loss
attributable to common stockholders $ (2,238,346 ) $ (4,704,259 ) $
(28,779,766 ) $ (17,524,901 ) Net loss per common share:
Basic and diluted $ (0.09 ) $ (1.25 ) $ (1.52 ) $ (4.67 )
Weighted-average common shares outstanding: Basic and diluted
25,299,109 3,777,828 18,962,601 3,756,614
(1) Includes stock-based compensation as
follows:
Three Months Ended Nine Months Ended September
30, September 30, 2014 2013 2014
2013 Cost of subscription revenue $ 113,555 $ 23,051 $
149,068 $ 57,077 Cost of professional services revenue 82,672
11,955 94,746 28,081 Sales and marketing 125,171 23,028 167,208
53,561 Research and development 185,660 16,553 245,506 30,504
General and administrative 482,280 91,606 672,134
166,704 $ 989,338 $ 166,193 $ 1,328,662
$ 335,927
AMBER ROAD, INC. AND
SUBSIDIARIES
Condensed Consolidated Statements of
Cash Flows
(Unaudited)
Nine Months Ended September 30,
2014 2013 Cash flows from
operating activities: Net loss $ (26,363,261 ) $ (13,886,609 )
Adjustments to reconcile net loss to net cash used in operating
activities: Depreciation and amortization 3,616,780 2,538,981 Bad
debt expense 20,953 47,944 Stock-based compensation 1,328,662
335,927 Loss on asset impairment 11,964 30,261 Restricted stock
non-cash compensation 18,683,277 8,705,754 Compensation related to
puttable common stock 41,073 4,564 Increase in fair value of
contingent consideration liability 122,826 2,382 Non-cash interest
expense related to debt — 21,290 Change in fair value of warrant
liability 1,244,635 1,475,959 Amortization of debt financing costs
39,905 7,906 Changes in operating assets and liabilities: Accounts
receivable (1,736,510 ) 62,530 Unbilled receivables (115,333 )
(22,012 ) Prepaid expenses and other current assets (458,465 )
(2,727,424 ) Accounts payable (818,796 ) 453,848 Accrued expenses
(973,538 ) 940,985 Other liabilities (66,863 ) (15,235 ) Deferred
revenue (3,679,116 ) (891,770 ) Net cash used in operating
activities (9,101,807 ) (2,914,719 ) Cash flows from investing
activities: Capital expenditures (641,197 ) (814,953 ) Addition of
capitalized software development costs (1,529,459 ) (1,653,770 )
Acquisition, net of cash acquired of $85,310 — (1,914,768 ) Cash
received (paid) for deposits 116,828 (34,157 ) Decrease in
restricted cash 56,409 — Net cash used in investing
activities (1,997,419 ) (4,417,648 ) Cash flows from financing
activities: Proceeds from revolving line of credit — 6,178,525
Payments on revolving line of credit (6,978,525 ) (500,000 ) Debt
financing costs — (31,623 ) Repayments on capital lease obligations
(860,651 ) (187,110 ) Proceeds from the exercise of stock options
823,152 29,750 Proceeds from the exercise of common stock warrant
40,452 — Payment of offering costs (4,266,455 ) (207,100 ) Proceeds
from initial public offering, net of underwriting discounts and
commissions 57,824,899 — Net cash provided by
financing activities 46,582,872 5,282,442 Effect of
exchange rate on cash and cash equivalents (58,451 ) (344,142 ) Net
increase (decrease) in cash and cash equivalents 35,425,195
(2,394,067 ) Cash and cash equivalents at beginning of period
5,147,735 4,279,821 Cash and cash equivalents at end
of period $ 40,572,930 $ 1,885,754
Reconciliation of Net Loss to Adjusted
EBITDA
(unaudited)
Three Months Ended
Nine Months Ended September 30, September 30,
2014 2013 2014
2013 Net loss $ (2,238,346 ) $ (3,491,495 ) $
(26,363,261 ) $ (13,886,609 ) Depreciation and amortization expense
1,271,360 910,385 3,616,780 2,538,981 Interest expense 48,546
51,210 217,440 75,403 Interest income (1,615 ) (211 ) (1,919 )
(18,239 ) Income tax expense 150,901 169,472 400,450
412,040 EBITDA (769,154 ) (2,360,639 ) (22,130,510 )
(10,878,424 ) Stock-based compensation 989,338 166,193 1,328,662
335,927 Restricted stock expense — 1,993,543 18,683,277 8,705,754
Compensation expense related to loan forgiveness — — 927,093 —
Puttable stock compensation 13,691 4,564 41,073 4,564
Increase in fair value of contingent
consideration liability
25,403 2,382 122,826 2,382 Warrant expense — 416,378 1,244,635
1,475,959 Severance costs 1,121,285 — 1,121,285
— Adjusted EBITDA $ 1,380,563 $ 222,421
$ 1,338,341 $ (353,838 )
Reconciliation of Net Loss to Non-GAAP
Adjusted Net Loss
(unaudited)
Three Months Ended
Nine Months Ended September 30, September 30,
2014 2013 2014
2013 Net loss $ (2,238,346 ) $ (3,491,495 ) $ (26,363,261 )
$ (13,886,609 ) Stock-based compensation 989,338 166,193 1,328,662
335,927 Restricted stock expense — 1,993,543 18,683,277 8,705,754
Compensation expense related to loan forgiveness — — 927,093 —
Puttable stock compensation 13,691 4,564 41,073 4,564 Increase in
fair value of contingent consideration liability 25,403 2,382
122,826 2,382 Warrant expense — 416,378 1,244,635 1,475,959
Severance costs 1,121,285 — 1,121,285 —
Non-GAAP adjusted net loss $ (88,629 ) $ (908,435 ) $ (2,894,410 )
$ (3,362,023 ) Adjusted non-GAAP net loss per common share:
Basic and diluted $ 0.00 $ (0.24 ) $ (0.12 ) $ (0.89 )
Weighted-average common shares outstanding:
GAAP weighted average number of common
shares outstanding - basic and diluted
25,299,109 3,777,828 18,962,601 3,756,614
Additional weighted average shares giving
effect to initial public offering and conversion of
preferred
stock at the beginning of the
period
— — 6,199,958 —
Non-GAAP weighted average number of
common shares outstanding - basic and diluted
25,299,109 3,777,828 25,162,559 3,756,614
Reconciliation of Loss from Operations
to
Non-GAAP Adjusted Income (Loss) from
Operations
(unaudited)
Three Months Ended
Nine Months Ended September 30, September 30,
2014 2013 2014
2013 Loss from operations $ (2,040,514 ) $
(3,271,024 ) $ (25,747,290 ) $ (13,417,405 ) Stock-based
compensation 989,338 166,193 1,328,662 335,927 Restricted stock
expense — 1,993,543 18,683,277 8,705,754 Compensation expense
related to loan forgiveness — — 927,093 — Puttable stock
compensation 13,691 4,564 41,073 4,564
Increase in fair value of contingent
consideration liability
25,403 2,382 122,826 2,382 Warrant expense — 416,378 1,244,635
1,475,959 Severance costs 1,121,285 — 1,121,285
— Non-GAAP adjusted income (loss) from operations $
109,203 $ (687,964 ) $ (2,278,439 ) $ (2,892,819 )
Investor Relations Contact:ICRStaci Mortenson,
201-804-6170InvestorRelations@AmberRoad.comorAmber Road
Contacts:Annika Helmrich, 201-806-3656 (US &
Canada)AnnikaHelmrich@AmberRoad.comorMartijn van Gils, +31 (0)
207997790 (Europe & Asia)MartijnvanGils@AmberRoad.com
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