Amber Road, Inc. (NYSE: AMBR), a leading provider of global
trade management (GTM) solutions, today announced its financial
results for the third quarter ended September 30, 2018.
Jim Preuninger, Chief Executive Officer of Amber Road, stated,
“Q3 was another good quarter for Amber Road, exceeding our guidance
on both the top and bottom lines. I am especially pleased to report
positive non-GAAP operating income and strong adjusted EBITDA. We
also generated meaningful cash flow from operations bringing our
year-to-date cash flow from operations to roughly $5 million. We
have established Amber Road as a company that can deliver solid
revenue growth, with improving profit and cash flow.”
Third Quarter 2018 Financial Highlights
Revenue
- Total revenue was $22.2 million, an
increase compared to $20.2 million for the comparable period of
2017.
- Subscription revenue was $15.9 million,
an increase compared to $14.9 million for the comparable period of
2017.
- Professional services revenue was $6.3
million, an increase compared to $5.3 million for the comparable
period of 2017.
Operating Income (Loss)
- GAAP operating loss was $(1.2) million,
compared to $(1.8) million for the comparable period of 2017.
- Non-GAAP adjusted operating income
(loss)(1) was $1.3 million, compared to $(11,862) for the
comparable period of 2017.
Net Income (Loss)
- GAAP net loss was $(1.6) million,
compared to $(2.2) million for the comparable period of 2017.
- GAAP basic and diluted net loss per
share was $(0.06), compared to $(0.08) for the comparable period of
2017, based on 27.9 million and 27.5 million basic and diluted
weighted average shares outstanding, respectively.
- Non-GAAP adjusted net income (loss)(1)
was $0.8 million, compared to $(0.4) million for the comparable
period of 2017.
- Non-GAAP adjusted net income (loss) per
share was $0.03, compared to $(0.02) for the comparable period of
2017, based on 27.9 million and 27.5 million basic and diluted
weighted average shares outstanding, respectively.
Adjusted EBITDA
- Adjusted EBITDA was $2.5 million,
compared to $1.0 million for the comparable period of 2017.
Effect of Accounting Standards Codification (ASC) 606 versus
ASC 605
The table below shows the effects of the adoption of ASC 606
versus ASC 605 on our consolidated financial statements for the
three and nine months ended September 30, 2018 for the following
items:
Three Months EndedSeptember 30, 2018
Nine Months EndedSeptember 30, 2018 (in millions,
except per share info)
WithAdoptionofASC
606
WithoutAdoptionofASC 606
Effect
ofChangeHigher/(Lower)
WithAdoptionofASC
606
WithoutAdoptionofASC 606
Effect
ofChangeHigher/(Lower)
Total revenue $ 22.2 $ 22.1 $ 0.1 $ 63.3 $ 63.4 $ (0.1) Non-GAAP
adjusted income (loss) from operations $ 1.3 $ 1.0 $ 0.3 $ — $
(0.5) $ 0.5 Non-GAAP net income (loss) per share, basic and diluted
$ 0.03 $ 0.02 $ 0.01 $ (0.04) $ (0.06) $ 0.02
Balance Sheet and Cash Flow
- Cash and cash equivalents at
September 30, 2018 were $10.1 million, compared to $9.4
million at December 31, 2017 and $8.3 million at
September 30, 2017.
- Cash provided by operating activities
was $4.9 million for the nine months September 30, 2018,
compared to cash used in operating activities of $(2.8) million for
the nine months September 30, 2017.
A reconciliation of GAAP operating loss and net loss to Non-GAAP
adjusted operating 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.”
Business Outlook
Based on information available as of November 8, 2018,
Amber Road is issuing guidance for the fourth quarter and full year
2018. Refer to the reconciliation of GAAP guidance to non-GAAP
guidance tables at the end of this release for details on non-GAAP
adjustments.
Given our adoption of ASC 606, we anticipate fourth quarter and
full-year 2018 results to be in the following ranges:
Fourth Quarter Full Year (in
millions, except per share info) Low High
Low High Revenue $ 21.1 $ 21.7 $ 84.4 $ 85.0
Non-GAAP adjusted loss from operations $ (0.9) $ (0.3) $ (0.9) $
(0.3) Non-GAAP net loss per share, basic and diluted $ (0.05) $
(0.03) $ (0.10) $ (0.08) Assumed weighted average shares
outstanding 28.0 28.0 28.0 28.0
Endnotes:
(1) For 2018, non-GAAP adjusted operating loss and adjusted net
loss excludes stock-based compensation. For 2017, non-GAAP adjusted
operating loss and adjusted net loss excludes stock-based
compensation and change in fair value of contingent consideration
liability.
Conference Call Information
Amber Road will host a conference call on Thursday,
November 8, 2018 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)-394-8218 (domestic) or
(323)-794-2588 (international). The conference ID is 4359810.
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 until
November 15, 2018 at (844)-512-2921 (domestic) or (412)-317-6671
(international). The replay pass code is 4359810. 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 transform
the way companies conduct global trade. As a leading provider of
cloud-based global trade management (GTM) software, trade content
and training, we help companies all over the world create value
through their global supply chain by improving margins, achieving
greater agility and lowering risk. We do this by creating a digital
model of the global supply chain that enables collaboration between
buyers, sellers and logistics companies. We replace manual and
outdated processes with comprehensive automation for global trade
activities, including sourcing, supplier management, production
tracking, transportation management, supply chain visibility,
import and export compliance, and duty management. We provide rich
data analytics to uncover areas for optimization and deliver a
platform that is responsive and flexible to adapt to the
ever-changing nature of global trade.
Non-GAAP Financial Measures
To provide investors with additional information regarding our
financial results, Amber Road has provided non-GAAP financial
measures and non-GAAP guidance within this press release including
non-GAAP adjusted operating and net income (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 income (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
and changes in the fair value of contingent consideration
liability. 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 within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are not historical facts, but
instead represent only our current expectations and beliefs, and
therefore, contain risks and uncertainties about future events or
our future financial performance, including, but not limited to,
achieving revenue from bookings, closing business from the sales
pipeline, new customer deployments and maintaining these
relationships, the ability to reduce operating losses and use of
cash, and attaining profitability. 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
annual, 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 30,2018 December
31,2017 Assets Current assets: Cash and cash
equivalents $ 10,140,432 $ 9,360,601 Accounts receivable, net
12,603,370 16,957,044 Unbilled receivables 1,122,441 884,104
Deferred commissions 4,026,733 4,400,015 Prepaid expenses and other
current assets 2,436,187 1,715,534 Total current assets 30,329,163
33,317,298 Property and equipment, net 10,218,127 9,370,104
Goodwill 43,739,860 43,768,269 Other intangibles, net 4,214,467
4,999,885 Deferred commissions 8,638,543 6,734,326 Deposits and
other assets 1,378,937 1,180,163 Total assets $ 98,519,097 $
99,370,045
Liabilities and Stockholders’ Equity Current
liabilities: Accounts payable $ 1,238,368 $ 2,650,582 Accrued
expenses 8,170,708 7,589,482 Current portion of capital lease
obligations 1,390,224 1,352,456 Deferred revenue 35,628,497
37,812,239 Current portion of term loan, net of discount 714,391
714,391 Total current liabilities 47,142,188 50,119,150 Capital
lease obligations, less current portion 1,440,732 1,461,101
Deferred revenue, less current portion 94,162 1,830,706 Term loan,
net of discount, less current portion 12,303,598 12,839,392
Revolving credit facility 6,000,000 6,000,000 Other noncurrent
liabilities 1,777,158 1,619,744 Total liabilities 68,757,838
73,870,093 Stockholders’ equity: Common stock, $0.001 par value;
100,000,000 shares authorized; issued and outstanding 27,618,995
and 27,288,985 shares at September 30, 2018 and December 31, 2017,
respectively 27,619 27,289 Additional paid-in capital 205,433,858
195,203,097 Accumulated other comprehensive loss (1,820,143)
(1,822,396) Accumulated deficit (173,880,075) (167,908,038) Total
stockholders’ equity 29,761,259 25,499,952 Total liabilities and
stockholders’ equity $ 98,519,097 $ 99,370,045
AMBER ROAD, INC. AND
SUBSIDIARIES
Condensed Consolidated Statements of
Operations
(Unaudited)
Three Months EndedSeptember 30,
Nine Months EndedSeptember 30, 2018
2017 2018
2017 Revenue: Subscription $ 15,857,436 $ 14,944,160 $
46,373,970 $ 43,532,217 Professional services 6,303,562
5,269,090 16,907,775 14,910,883 Total revenue
22,160,998 20,213,250 63,281,745
58,443,100 Cost of revenue (1): Cost of subscription revenue
5,358,242 4,903,483 16,170,349 16,066,645 Cost of professional
services revenue 4,102,453 4,247,519
12,727,948 12,396,228 Total cost of revenue 9,460,695
9,151,002 28,898,297 28,462,873 Gross profit
12,700,303 11,062,248 34,383,448
29,980,227 Operating expenses (1): Sales and marketing 5,523,108
5,551,239 17,443,921 17,043,562 Research and development 3,515,997
3,830,431 11,066,004 11,201,577 General and administrative
4,840,543 3,517,187 15,577,665 11,247,825
Total operating expenses 13,879,648 12,898,857
44,087,590 39,492,964 Loss from operations (1,179,345)
(1,836,609) (9,704,142) (9,512,737) Interest income 3,029 1,238
6,661 2,564 Interest expense (325,253) (272,293)
(964,423) (751,644) Loss before income taxes
(1,501,569) (2,107,664) (10,661,904) (10,261,817) Income tax
expense 113,201 130,039 317,943 906,557
Net loss $ (1,614,770) $ (2,237,703) $ (10,979,847)
$
(11,168,374)
Net loss per share: Basic and diluted $ (0.06) $ (0.08) $
(0.40) $ (0.41) Weighted-average shares outstanding: Basic and
diluted 27,871,168 27,471,248 27,717,793
27,377,058
(1) Includes stock-based compensation as
follows:
Three Months EndedSeptember 30, Nine Months
EndedSeptember 30, 2018 2017
2018 2017 Cost of subscription revenue
$ 178,358 $ 214,033 $ 756,014 $ 591,965 Cost of professional
services revenue 146,954 153,357 564,141 405,129 Sales and
marketing 215,433 321,226 1,177,833 780,626 Research and
development 449,065 401,567 1,680,615 987,427 General and
administrative 1,470,133 734,564 5,560,416
1,513,898 $ 2,459,943 $ 1,824,747 $ 9,739,019 $ 4,279,045
AMBER ROAD, INC. AND
SUBSIDIARIES
Condensed Consolidated Statements of
Cash Flows
(Unaudited)
Nine Months EndedSeptember
30,
2018 2017 Cash flows from operating
activities: Net loss $ (10,979,847) $ (11,168,374) Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities: Depreciation and amortization 3,761,482 4,015,240 Bad
debt expense 63,221 305,612 Stock-based compensation 9,739,019
4,279,045 Changes in fair value of contingent consideration
liability — 18,525 Accretion of debt discount 26,706 28,981 Changes
in operating assets and liabilities: Accounts receivable and
unbilled receivables 4,019,452 3,239,595 Prepaid expenses and other
assets (862,296) 823,889 Accounts payable (1,251,867) (967,975)
Accrued expenses 720,711 (1,172,824) Settlement of contingent
accrued compensation related to former ecVision founder —
(2,366,469) Other liabilities 213,120 (264,429) Deferred revenue
(536,448) 477,278 Net cash provided by (used in) operating
activities 4,913,253 (2,751,906) Cash flows from investing
activities: Capital expenditures (189,073) (169,739) Addition of
capitalized software development costs (2,532,519) (1,217,126) Cash
paid for deposits (46,522) (205,264) Net cash used in investing
activities (2,768,114) (1,592,129) Cash flows from financing
activities: Proceeds from revolving line of credit 18,350,000
18,350,000 Payments on revolving line of credit (18,350,000)
(18,250,000) Payments on term loan (562,500) (468,750) Debt
financing costs — (35,701) Repayments on capital lease obligations
(1,100,659) (1,237,031) Proceeds from the exercise of stock options
492,072 175,056 Contingent consideration related to ecVision
acquisition — (1,308,525) Net cash used in financing activities
(1,171,087) (2,774,951) Effect of exchange rate on cash, cash
equivalents and restricted cash (194,221) (6,654) Net decrease in
cash, cash equivalents and restricted cash 779,831 (7,125,640)
Cash, cash equivalents and restricted cash at beginning of period
9,417,001 15,464,274 Cash, cash equivalents and restricted cash at
end of period $ 10,196,832 $ 8,338,634 Reconciliation of
cash, cash equivalents and restricted cash to the condensed
consolidated balance sheet: Cash and cash equivalents $ 10,140,432
$ 8,282,234 Restricted cash in deposits and other assets 56,400
56,400 Total cash, cash equivalents and restricted cash $
10,196,832 $ 8,338,634 Supplemental disclosures of cash flow
information: Cash paid for interest $ 937,716 $ 717,057 Non-cash
property and equipment acquired under capital lease 1,118,058
1,638,819 Non-cash property and equipment purchases in accounts
payable 6,691 46,545
Reconciliation of Net Loss to Adjusted
EBITDA
(Unaudited)
Three Months EndedSeptember 30,
Nine Months EndedSeptember 30, 2018
2017 2018 2017 Net loss $ (1,614,770) $
(2,237,703) $ (10,979,847) $ (11,168,374) Depreciation and
amortization expense 1,214,214 1,007,083 3,761,482 4,015,240
Interest expense 325,253 272,293 964,423 751,644 Interest income
(3,029) (1,238) (6,661) (2,564) Income tax expense 113,201 130,039
317,943 906,557 EBITDA 34,869 (829,526) (5,942,660) (5,497,497)
Stock-based compensation 2,459,943 1,824,747 9,739,019 4,279,045
Change in fair value of contingent consideration liability — — —
18,525 Adjusted EBITDA $ 2,494,812 $ 995,221 $ 3,796,359 $
(1,199,927)
Reconciliation of Net Loss to Non-GAAP
Adjusted Net Income (Loss)
(Unaudited)
Three Months EndedSeptember 30,
Nine Months EndedSeptember 30, 2018
2017 2018 2017 Net loss $ (1,614,770) $
(2,237,703) $ (10,979,847) $ (11,168,374)
Stock-based compensation
2,459,943 1,824,747 9,739,019 4,279,045 Change in fair value of
contingent consideration liability — — — 18,525 Non-GAAP adjusted
net income (loss) $ 845,173 $ (412,956) $ (1,240,828) $ (6,870,804)
Adjusted non-GAAP net income (loss) per share: Basic and
diluted $ 0.03 $ (0.02) $ (0.04) $ (0.25) GAAP Weighted-average
shares outstanding: Basic and diluted 27,871,168 27,471,248
27,717,793 27,377,058
Reconciliation of Loss from Operations
to Non-GAAP Adjusted Income (Loss) from Operations
(Unaudited)
Three Months EndedSeptember 30,
Nine Months EndedSeptember 30, 2018
2017 2018 2017 Loss from operations $
(1,179,345) $ (1,836,609) $ (9,704,142) $ (9,512,737) Stock-based
compensation 2,459,943 1,824,747 9,739,019 4,279,045 Change in fair
value of contingent consideration liability — — — 18,525 Non-GAAP
adjusted income (loss) from operations $ 1,280,598 $ (11,862) $
34,877 $ (5,215,167)
Based on information available as of November 8, 2018, the
following tables show 2018 GAAP guidance reconciled to non-GAAP
guidance for the fourth quarter and full year 2018 as indicated
below (numbers in millions, except per share data):
Reconciliation of Loss from Operations
to Non-GAAP Adjusted Loss from Operations Guidance
(Unaudited)
Fourth Quarter 2018
Full Year 2018 Low High Low
High Loss from operations $ (3.4) $ (2.8) $ (13.1) $
(12.5) Stock-based compensation 2.5 2.5 12.2 12.2 Non-GAAP adjusted
loss from operations $ (0.9) $ (0.3) $ (0.9) $ (0.3)
Reconciliation of Net Loss per Share to
Non-GAAP Adjusted Net Loss per Share Guidance (1)
(Unaudited)
Fourth Quarter 2018 Full Year 2018 Low
High Low High Net loss per share, basic and
diluted $ (0.14) $ (0.12) $ (0.54) $ (0.52) Stock-based
compensation 0.09 0.09 0.44 0.44 Non-GAAP adjusted net loss per
share, basic and diluted $ (0.05) $ (0.03) $ (0.10) $ (0.08)
(1) This assumes weighted average shares outstanding - basic and
diluted 28.0 28.0 28.0 28.0
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version on businesswire.com: https://www.businesswire.com/news/home/20181108005970/en/
Investor Relations ContactICRStaci Mortenson,
201-806-3663InvestorRelations@AmberRoad.comorAmber Road
ContactsAnnika Helmrich (US & Canada), +1
201-806-3656AnnikaHelmrich@AmberRoad.comorMartijn van Gils (Europe
& Asia), +31 858769534MartijnvanGils@AmberRoad.com
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